NYLIAC VARIABLE ANNUITY SEPARATE ACCOUNT II, 497, 2000-05-05

NYLIAC VARIABLE ANNUITY SEPARATE ACCOUNT II
497, 2000-05-05

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<PAGE> 1

PROSPECTUS DATED MAY 1, 2000
FOR THE
NEW YORK LIFE LIFESTAGES(R) FLEXIBLE PREMIUM VARIABLE ANNUITY
(FORMERLY NAMED NYLIAC VARIABLE ANNUITY)
FROM
NEW YORK LIFE INSURANCE AND ANNUITY CORPORATION
(A DELAWARE CORPORATION)
51 MADISON AVENUE, NEW YORK, NEW YORK 10010
INVESTING IN
NYLIAC VARIABLE ANNUITY SEPARATE ACCOUNT-I
NYLIAC VARIABLE ANNUITY SEPARATE ACCOUNT-II
This Prospectus describes the individual New York Life LifeStages(R)
Flexible Premium Variable Annuity policies. New York Life Insurance and Annuity
Corporation ("NYLIAC") issues these policies. We designed these policies to
assist individuals with their long-term retirement planning needs. You can use
these policies with retirement plans that do or do not qualify for special
federal income tax treatment. The policies offer flexible premium payments,
access to your money through partial withdrawals (some withdrawals may be
subject to a surrender charge and/or tax penalty), a choice of when income
payments will commence, and a guaranteed death benefit if the owner or annuitant
dies before income payments have commenced.

Your premium payments accumulate on a tax-deferred basis. This means your
earnings are not taxed until you take the money out of your policy which can be
done in several ways. You can split your premium payments among a guaranteed
interest option and twenty-six variable investment divisions listed below.

<TABLE>
<S> <C>
- MainStay VP Capital Appreciation
- MainStay VP Cash Management
- MainStay VP Convertible
- MainStay VP Government
- MainStay VP High Yield Corporate Bond
- MainStay VP International Equity
- MainStay VP Total Return
- MainStay VP Value
- MainStay VP Bond
- MainStay VP Growth Equity
- MainStay VP Indexed Equity
- American Century Income & Growth
- Dreyfus Large Company Value
- Eagle Asset Management Growth Equity
- Lord Abbett Developing Growth
- Alger American Small Capitalization
- Calvert Social Balanced
- Fidelity VIP II Contrafund(R)
- Fidelity VIP Equity-Income
- Janus Aspen Series Balanced
- Janus Aspen Series Worldwide Growth
- MFS(R) Growth With Income Series
- MFS(R) Research Series
- Morgan Stanley UIF Emerging Markets Equity
- T. Rowe Price Equity Income
- Van Eck Worldwide Hard Assets
</TABLE>

We do not guarantee the investment performance of these variable investment
divisions. Depending on current market conditions, you can make or lose money in
any of the investment divisions.

You should read this Prospectus carefully before investing and keep it for
future reference. This Prospectus is not valid unless attached to current
prospectuses for the MainStay VP Series Fund, Inc., the Alger American Fund, the
Calvert Variable Series, Inc., the Fidelity Variable Insurance Products Fund II
(VIP II), the Fidelity Variable Insurance Products Fund (VIP), the Janus Aspen
Series, the MFS(R) Variable Insurance Trust(SM), The Universal Institutional
Funds, Inc., the T. Rowe Price Equity Series, Inc. and the Van Eck Worldwide
Insurance Trust (the "Funds", each individually a "Fund"). Each Investment
Division invests in shares of a corresponding Fund portfolio.

To learn more about the policy you can obtain a copy of the Statement of
Additional Information ("SAI"), dated May 1, 2000. The SAI has been filed with
the Securities and Exchange Commission ("SEC") and is incorporated by reference
into this Prospectus. The table of contents for the SAI appears at the end of
this Prospectus. For a free copy of the SAI, call us at (800) 598-2019 or write
to us at the address above.

THE SEC HAS NOT APPROVED OR DISAPPROVED THESE SECURITIES OR PASSED UPON THE
ADEQUACY OR ACCURACY OF THIS PROSPECTUS. ANY REPRESENTATION TO THE CONTRARY IS A
CRIMINAL OFFENSE.

THE POLICIES INVOLVE RISKS, INCLUDING POTENTIAL LOSS OF PRINCIPAL INVESTED.
THE POLICIES ARE NOT DEPOSITS OR OBLIGATIONS OF, OR GUARANTEED OR ENDORSED BY,
ANY BANK, AND ARE NOT FEDERALLY INSURED BY THE FDIC, THE FEDERAL RESERVE BOARD,
OR ANY OTHER AGENCY.
<PAGE> 2

TABLE OF CONTENTS

<TABLE>
<CAPTION>
PAGE
----
<S> <C>
DEFINITIONS............................ 3
FEE TABLE.............................. 4
QUESTIONS AND ANSWERS ABOUT NEW YORK
LIFE LIFESTAGES(R) FLEXIBLE PREMIUM
VARIABLE ANNUITY..................... 9
FINANCIAL STATEMENTS................... 16
CONDENSED FINANCIAL INFORMATION........ 17
NEW YORK LIFE INSURANCE AND ANNUITY
CORPORATION AND THE SEPARATE
ACCOUNTS............................. 20
New York Life Insurance and Annuity
Corporation....................... 20
The Separate Accounts................ 20
The Portfolios....................... 20
Additions, Deletions or Substitutions
of Investments.................... 21
Reinvestment......................... 22
THE POLICIES........................... 22
Selecting the Variable Annuity That's
Right for You..................... 22
Qualified and Non-Qualified
Policies.......................... 23
Policy Application and Premium
Payments.......................... 24
Payments Returned for Insufficient
Funds............................. 25
Your Right to Cancel ("Free Look")... 25
Issue Ages........................... 25
Transfers............................ 25
Procedures for Telephone Transfers... 25
Dollar Cost Averaging................ 26
Automatic Asset Reallocation......... 27
Interest Sweep....................... 27
Accumulation Period.................. 27
(a) Crediting of Premium
Payments.................... 27
(b) Valuation of Accumulation
Units....................... 28
Third Party Investment Advisory
Arrangements...................... 28
Policy Owner Inquiries............... 28
CHARGES AND DEDUCTIONS................. 28
Surrender Charges.................... 28
Amount of Surrender Charge........... 29
Exceptions to Surrender Charges...... 29
Other Charges........................ 29
(a) Mortality and Expense Risk
Charges..................... 29
</TABLE>

<TABLE>
<CAPTION>
PAGE
----
<S> <C>
(b) Administration Fee............ 30
(c) Policy Service Charge......... 30
(d) Fund Charges.................. 30
Group and Sponsored Arrangements..... 30
Taxes................................ 30
DISTRIBUTIONS UNDER THE POLICY......... 31
Surrenders and Withdrawals........... 31
(a) Surrenders.................... 31
(b) Partial Withdrawals........... 31
(c) Periodic Partial
Withdrawals................. 31
(d) Hardship Withdrawals.......... 32
Required Minimum Distribution
Option............................ 32
Our Right to Cancel.................. 32
Annuity Commencement Date............ 32
Death Before Annuity Commencement.... 32
Income Payments...................... 33
(a) Election of Income Payment
Options..................... 33
(b) Other Methods of Payment.... 33
(c) Proof of Survivorship......... 34
Delay of Payments.................... 34
Designation of Beneficiary........... 34
Restrictions Under Internal Revenue
Code Section 403(b)(11)........... 34
Loans................................ 34
Riders............................... 35
(a) Living Needs Benefit
Rider....................... 35
(b) Unemployment Benefit Rider.... 35
THE FIXED ACCOUNT...................... 36
(a) Interest Crediting............ 36
(b) Bail-Out...................... 36
(c) Transfers to Investment
Divisions................... 36
FEDERAL TAX MATTERS.................... 37
Introduction......................... 37
Taxation of Annuities in General..... 37
Qualified Plans...................... 38
(a) Section 403(b) Plans.......... 38
(b) Individual Retirement
Annuities................... 38
(c) Roth Individual Retirement
Annuities................... 38
(d) Deferred Compensation
Plans....................... 39
DISTRIBUTOR OF THE POLICIES............ 39
VOTING RIGHTS.......................... 39
TABLE OF CONTENTS FOR THE STATEMENT OF
ADDITIONAL INFORMATION............... 40
</TABLE>

THIS PROSPECTUS IS NOT CONSIDERED AN OFFERING IN ANY STATE WHERE THE SALE
OF THIS POLICY CANNOT LAWFULLY BE MADE. WE DO NOT AUTHORIZE ANY INFORMATION OR
REPRESENTATIONS REGARDING THE OFFERING OTHER THAN AS DESCRIBED IN THIS
PROSPECTUS OR IN ANY ATTACHED SUPPLEMENT TO THIS PROSPECTUS OR IN ANY
SUPPLEMENTAL SALES MATERIAL WE AUTHORIZE.

2
<PAGE> 3

DEFINITIONS

ACCUMULATION UNIT--An accounting unit we use to calculate the Variable
Accumulation Value prior to the Annuity Commencement Date. Each Investment
Division of each Separate Account has a distinct Accumulation Unit value.

ACCUMULATION VALUE--The sum of the Variable Accumulation Value and the Fixed
Accumulation Value of a policy.

ALLOCATION ALTERNATIVES--The Investment Divisions of the applicable Separate
Account and the Fixed Account.

ANNUITANT--The person whose life determines the Income Payments, and upon whose
death prior to the Annuity Commencement Date, benefits under the policy may be
paid.

ANNUITY COMMENCEMENT DATE--The date on which we are to make the first Income
Payment under the policy.

BENEFICIARY--The person or entity having the right to receive the death benefit
set forth in the policy and who is the "designated beneficiary" for purposes of
Section 72 of the Internal Revenue Code in the event of the Annuitant's or the
policy owner's death.

BUSINESS DAY--Generally, any day on which the New York Stock Exchange ("NYSE")
is open for trading. Our Business Day ends at 4:00 p.m. Eastern Time or the
closing of regular trading on the NYSE, if earlier.

ELIGIBLE PORTFOLIOS ("PORTFOLIOS")--The mutual fund portfolios of the Funds that
are available for investment through the Investment Divisions of the Separate
Accounts.

FIXED ACCOUNT--An account that is credited with a fixed interest rate which
NYLIAC declares and is not part of the Separate Accounts. The Accumulation Value
of the Fixed Account is supported by assets in NYLIAC's general account, which
are subject to the claims of our general creditors.

FIXED ACCUMULATION VALUE--The sum of premium payments and transfers allocated to
the Fixed Account, plus interest credited on those premium payments and
transfers, less any transfers and partial withdrawals from the Fixed Account,
and less any surrender charges and policy service charges that may have already
been assessed from the Fixed Account.

INCOME PAYMENTS--Periodic payments NYLIAC makes after the Annuity Commencement
Date.

INVESTMENT DIVISION--The variable investment options available with the policy.
Each Investment Division invests exclusively in shares of a specified Eligible
Portfolio.

NON-QUALIFIED POLICIES--Policies that are not available for use in connection
with employee retirement plans that qualify for special federal income tax
treatment.

POLICY ANNIVERSARY--An anniversary of the Policy Date shown on the Policy Data
Page.

POLICY DATA PAGE--Page 2 of the policy, which contains the policy
specifications.

POLICY DATE--The date from which we measure Policy Years, quarters, months and
Policy Anniversaries. It is shown on the Policy Data Page.

POLICY YEAR--A year starting on the Policy Date. Subsequent Policy Years begin
on each Policy Anniversary, unless otherwise indicated.

QUALIFIED POLICIES--Policies issued under employee retirement plans that qualify
for special federal income tax treatment.

SEPARATE ACCOUNT--Separate Account I or Separate Account II, collectively the
Separate Accounts.

SEPARATE ACCOUNT I--NYLIAC Variable Annuity Separate Account-I, a segregated
asset account we established to receive and invest premium payments paid under
Non-Qualified Policies. This Separate Account's Investment Divisions, in turn,
purchase shares of Eligible Portfolios.

SEPARATE ACCOUNT II--NYLIAC Variable Annuity Separate Account-II, a segregated
asset account we established to receive and invest premium payments paid under
Qualified Policies. This Separate Account's Investment Divisions, in turn,
purchase shares of Eligible Portfolios.

VARIABLE ACCUMULATION VALUE--The sum of the products of the current Accumulation
Unit value(s) for each of the Investment Divisions multiplied by the number of
Accumulation Units held in the respective Investment Divisions.

3
<PAGE> 4

FEE TABLE
<TABLE>
<CAPTION>
MAINSTAY VP
MAINSTAY VP MAINSTAY VP HIGH YIELD MAINSTAY VP
CAPITAL CASH MAINSTAY VP MAINSTAY VP CORPORATE INTERNATIONAL
APPRECIATION MANAGEMENT CONVERTIBLE GOVERNMENT BOND EQUITY
------------ ----------- ----------- ----------- ----------- -------------
<S> <C> <C> <C> <C> <C> <C>
OWNER TRANSACTION EXPENSES
Surrender Charge (as a % of amount
withdrawn)...................... 7% during Policy Years 1-3; 6% during Policy Year 4, 5% during Policy Year 5, 4%
during Policy Year 6, 3% during Policy Year 7, 2% during Policy Year 8, 1% during
Policy Year 9, and 0% thereafter.
Transfer Fee...................... There is no transfer fee on the first 12 transfers in any Policy Year. However,
NYLIAC reserves the right to charge up to $30 for each transfer in excess of 12
transfers per Policy Year.
Annual Policy Service Charge...... Lesser of $30 per policy or 2% of the Accumulation Value, for policies with less
than $10,000 of Accumulation Value.
SEPARATE ACCOUNT ANNUAL EXPENSES
(as a % of average account value)
Mortality and Expense Risk Fees... 1.20% 1.20% 1.20% 1.20% 1.20% 1.20%
Administration Fees............... 0.10% 0.10% 0.10% 0.10% 0.10% 0.10%
Total Separate Account Annual
Expenses...................... 1.30% 1.30% 1.30% 1.30% 1.30% 1.30%

FUND ANNUAL EXPENSES AFTER
REIMBURSEMENT
(as a % of average net assets for
the fiscal year ended December
31, 1999)(a)
Advisory Fees..................... 0.36% 0.25% 0.36% 0.30% 0.30% 0.60%
Administration Fees............... 0.20% 0.20% 0.20% 0.20% 0.20% 0.20%
Other Expenses.................... 0.06% 0.06% 0.15% 0.09% 0.07% 0.27%
Total Fund Annual Expenses........ 0.62% 0.51% 0.71% 0.59% 0.57% 1.07%

MAINSTAY VP
TOTAL MAINSTAY VP MAINSTAY VP
RETURN VALUE BOND
----------- ----------- -----------
<S> <C> <C> <C>
OWNER TRANSACTION EXPENSES

Surrender Charge (as a % of amount
withdrawn)...................... 7% during Policy Years 1-3; 6% during Policy Year 4, 5% during Policy Year 5, 4%
during Policy Year 6, 3% during Policy Year 7, 2% during Policy Year 8, 1% during
Policy Year 9, and 0% thereafter.
Transfer Fee...................... There is no transfer fee on the first 12 transfers in any Policy Year. However,
NYLIAC reserves the right to charge up to $30 for each transfer in excess of 12
transfers per Policy Year.
Annual Policy Service Charge...... Lesser of $30 per policy or 2% of the Accumulation Value, for policies with less
than $10,000 of Accumulation Value.
SEPARATE ACCOUNT ANNUAL EXPENSES
(as a % of average account value)
Mortality and Expense Risk Fees... 1.20% 1.20% 1.20%
Administration Fees............... 0.10% 0.10% 0.10%
Total Separate Account Annual
Expenses...................... 1.30% 1.30% 1.30%
FUND ANNUAL EXPENSES AFTER
REIMBURSEMENT
(as a % of average net assets for
the fiscal year ended December
31, 1999)(a)
Advisory Fees..................... 0.32% 0.36% 0.25%
Administration Fees............... 0.20% 0.20% 0.20%
Other Expenses.................... 0.06% 0.07% 0.05%
Total Fund Annual Expenses........ 0.58% 0.63% 0.50%
</TABLE>

- ------------

4
<PAGE> 5

FEE TABLE--(CONTINUED)
<TABLE>
<CAPTION>
EAGLE
MAINSTAY MAINSTAY AMERICAN DREYFUS ASSET LORD ALGER
VP VP CENTURY LARGE MANAGEMENT ABBETT AMERICAN
GROWTH INDEXED INCOME & COMPANY GROWTH DEVELOPING SMALL
EQUITY EQUITY GROWTH VALUE EQUITY GROWTH CAPITALIZATION
-------- -------- -------- ------- ---------- ---------- --------------
<S> <C> <C> <C> <C> <C> <C> <C>
OWNER TRANSACTION EXPENSES
Surrender Charge (as a % of amount
withdrawn)......................... 7% during Policy Years 1-3; 6% during Policy Year 4, 5% during Policy Year 5, 4%
during Policy Year 6, 3% during Policy Year 7, 2% during Policy Year 8, 1% during
Policy Year 9, and 0% thereafter.
Transfer Fee......................... There is no transfer fee on the first 12 transfers in any Policy Year. However,
NYLIAC reserves the right to charge up to $30 for each transfer in excess of 12
transfers per Policy Year.
Annual Policy Service Charge......... Lesser of $30 per policy or 2% of the Accumulation Value, for policies with less than
$10,000 of Accumulation Value.
SEPARATE ACCOUNT ANNUAL EXPENSES
(as a % of average account value)
Mortality and Expense Risk Fees...... 1.20% 1.20% 1.20% 1.20% 1.20% 1.20% 1.20%
Administration Fees.................. 0.10% 0.10% 0.10% 0.10% 0.10% 0.10% 0.10%
Total Separate Account Annual
Expenses........................... 1.30% 1.30% 1.30% 1.30% 1.30% 1.30% 1.30%

FUND ANNUAL EXPENSES AFTER
REIMBURSEMENT
(as a % of average net assets for the
fiscal year ended December
31,1999)(a)
Advisory Fees........................ 0.25% 0.10% 0.50% 0.60% 0.50% 0.60% 0.85%
Administration Fees.................. 0.20% 0.20% 0.20% 0.20% 0.20% 0.20% --
Other Expenses....................... 0.04% 0.06% 0.15%(b) 0.15%(b) 0.15%(b) 0.15%(b) 0.05%
Total Fund Annual Expenses........... 0.49% 0.36% 0.85% 0.95% 0.85% 0.95% 0.90%

CALVERT FIDELITY
SOCIAL VIP II
BALANCED CONTRAFUND(R)
-------- -------------
<S> <C> <C>
OWNER TRANSACTION EXPENSES
Surrender Charge (as a % of amount
withdrawn)......................... 7% during Policy Years 1-3; 6% during Policy Year 4, 5% during Policy Year 5, 4%
during Policy Year 6, 3% during Policy Year 7, 2% during Policy Year 8, 1% during
Policy Year 9, and 0% thereafter.
Transfer Fee......................... There is no transfer fee on the first 12 transfers in any Policy Year. However,
NYLIAC reserves the right to charge up to $30 for each transfer in excess of 12
transfers per Policy Year.
Annual Policy Service Charge......... Lesser of $30 per policy or 2% of the Accumulation Value, for policies with less than
$10,000 of Accumulation Value.
SEPARATE ACCOUNT ANNUAL EXPENSES
(as a % of average account value)
Mortality and Expense Risk Fees...... 1.20% 1.20%
Administration Fees.................. 0.10% 0.10%
Total Separate Account Annual
Expenses........................... 1.30% 1.30%
FUND ANNUAL EXPENSES AFTER
REIMBURSEMENT
(as a % of average net assets for the
fiscal year ended December
31,1999)(a)
Advisory Fees........................ 0.70%(c) 0.58%
Administration Fees.................. -- --
Other Expenses....................... 0.19%(c) 0.07%
Total Fund Annual Expenses........... 0.89%(c) 0.65%(d)
</TABLE>

- ------------

5
<PAGE> 6

FEE TABLE--(CONTINUED)
<TABLE>
<CAPTION>
MORGAN
JANUS MFS(R) STANLEY
FIDELITY JANUS ASPEN GROWTH UIF
VIP ASPEN SERIES WITH MFS(R) EMERGING
EQUITY- SERIES WORLDWIDE INCOME RESEARCH MARKETS
INCOME BALANCED GROWTH SERIES SERIES EQUITY
-------- -------- --------- ------ -------- --------
<S> <C> <C> <C> <C> <C> <C>
OWNER TRANSACTION EXPENSES
Surrender Charge (as a % of amount withdrawn)............. 7% during Policy Years 1-3; 6% during Policy Year 4, 5% during
Policy Year 5, 4% during Policy Year 6, 3% during Policy Year 7,
2% during Policy Year 8, 1% during Policy Year 9, and 0%
thereafter.
Transfer Fee.............................................. There is no transfer fee on the first 12 transfers in any Policy
Year. However, NYLIAC reserves the right to charge up to $30 for
each transfer in excess of 12 transfers per Policy Year.
Annual Policy Service Charge.............................. Lesser of $30 per policy or 2% of the Accumulation Value, for
policies with less than $10,000 of Accumulation Value.
SEPARATE ACCOUNT ANNUAL EXPENSES
(as a % of average account value)
Mortality and Expense Risk Fees........................... 1.20% 1.20% 1.20% 1.20% 1.20% 1.20%
Administration Fees....................................... 0.10% 0.10% 0.10% 0.10% 0.10% 0.10%
Total Separate Account Annual Expenses.................... 1.30% 1.30% 1.30% 1.30% 1.30% 1.30%

FUND ANNUAL EXPENSES AFTER REIMBURSEMENT
(as a % of average net assets for the fiscal year ended
December 31,1999)(a)
Advisory Fees............................................. 0.48% 0.65% 0.65% 0.75% 0.75% 0.42%
Administration Fees....................................... -- -- -- -- -- 0.25%
Other Expenses............................................ 0.08% 0.02%(e) 0.05% 0.13% 0.11% 1.12%
Total Fund Annual Expenses................................ 0.56% 0.67% 0.70%(e) 0.88% 0.86% 1.79%(f)

T. ROWE VAN ECK
PRICE WORLDWIDE
EQUITY HARD
INCOME ASSETS
------- ---------
<S> <C> <C>
OWNER TRANSACTION EXPENSES
Surrender Charge (as a % of amount withdrawn)............. 7% during Policy Years 1-3; 6% during Policy Year 4, 5% during
Policy Year 5, 4% during Policy Year 6, 3% during Policy Year 7,
2% during Policy Year 8, 1% during Policy Year 9, and 0%
thereafter.
Transfer Fee.............................................. There is no transfer fee on the first 12 transfers in any Policy
Year. However, NYLIAC reserves the right to charge up to $30 for
each transfer in excess of 12 transfers per Policy Year.
Annual Policy Service Charge.............................. Lesser of $30 per policy or 2% of the Accumulation Value, for
policies with less than $10,000 of Accumulation Value.
SEPARATE ACCOUNT ANNUAL EXPENSES
(as a % of average account value)
Mortality and Expense Risk Fees........................... 1.20% 1.20%
Administration Fees....................................... 0.10% 0.10%
Total Separate Account Annual Expenses.................... 1.30% 1.30%
FUND ANNUAL EXPENSES AFTER REIMBURSEMENT
(as a % of average net assets for the fiscal year ended
December 31,1999)(a)
Advisory Fees............................................. 0.85%(g) 1.00%
Administration Fees....................................... -- --
Other Expenses............................................ -- 0.26%
Total Fund Annual Expenses................................ 0.85% 1.26%
</TABLE>

- ------------
(a) The Fund or its agents provided the fees and charges which are based on
1999 expenses and may reflect estimated charges except for Janus. We have
not verified the accuracy of the information provided by the agents.
(b) "Other Expenses" and "Total Fund Annual Expenses" for the American Century
Income & Growth, Dreyfus Large Company Value, Eagle Asset Management Growth
Equity and Lord Abbett Developing Growth Portfolios reflect an expense
reimbursement agreement that ended December 31, 1999 limiting "Other
Expenses" to 0.15% annually. In the absence of the expense reimbursement
arrangement, the "Total Fund Annual Expenses" would have been 0.92%, 1.00%,
0.87% and 1.04% for the American Century Income & Growth, Dreyfus Large
Company Value, Eagle Asset Management Growth Equity and Lord Abbett
Developing Growth Portfolios, respectively.
(c) "Other Expenses" reflect an indirect fee. Net fund operating expenses after
reductions for fees paid indirectly would be 0.86% for Social Balanced
Portfolio. Total expenses have been restated to reflect expenses expected
to be incurred in 2000.
(d) Through arrangements with certain funds or FMR on behalf of certain funds'
custodian, credits realized as a result of uninvested cash balances were
used to reduce a portion of each applicable fund's expenses. Without these
reductions, total operating expenses presented in the table would have been
0.67% for the Fidelity VIP II Contrafund Portfolio and 0.57% for the
Fidelity VIP Equity-Income Portfolio.
(e) Expenses are based upon expenses for the fiscal year ended December 31,
1999, restated to reflect a reduction in the management fee for Worldwide
Growth and Balanced portfolios. Expenses are stated both with and without
contractual waivers by Janus Capital. Waivers, if applicable, are first
applied against the management fee and then against other expenses, and
will continue until at least the next annual renewal of the advisory
agreement. All expenses are shown without the effect of expense offset
arrangements.
(f) Morgan Stanley Asset Management has voluntarily agreed to waive its
"Advisory Fee" and/or reimburse the Portfolio, if necessary, to the extent
that the "Total Fund Annual Expense" of the Portfolio exceed 1.75% of
average daily net assets. For purposes of determining the amount of the
voluntary advisory fee waiver and/or reimbursement, if any, the portfolio's
annual operating expenses include certain investment related expenses such
as foreign country tax expense and interest expense on amounts borrowed
which were 0.04% of the average daily net assets for 1999. The fee waivers
and reimbursements described above may be terminated by Morgan Stanley
Asset Management at any time without notice. Absent such reductions,
"Advisory Fees", "Administration Fees" and "Total Fund Annual Expense"
would have been 1.25%, 0.25% and 2.62% respectively.
(g) The "Advisory Fees" include the ordinary operating expenses of the Fund.

6
<PAGE> 7

EXAMPLES(1)

The table below will help you understand the various costs and expenses
that you will bear directly and indirectly. The table reflects charges and
expenses of the Separate Accounts and the Funds. However, the table does not
reflect optional charges under the policy. Charges and expenses may be higher or
lower in future years. For more information on the charges reflected in this
table see "Charges and Deductions" at page 27 and the Fund prospectuses which
accompany this Prospectus. NYLIAC may, where premium taxes are imposed by state
law, deduct premium taxes on surrender of the policy or on the Annuity
Commencement Date.

You would pay the following expense on a $1,000 investment in one of the
Investment Divisions listed, assuming a 5% annual return on assets:

1. If you surrender your policy at the end of the stated time period:

<TABLE>
<CAPTION>
1 YEAR 3 YEARS 5 YEARS 10 YEARS
-------- -------- -------- --------
<S> <C> <C> <C> <C>
MainStay VP Capital Appreciation......................... $88.45 $141.37 $176.62 $268.13
MainStay VP Cash Management.............................. $87.40 $138.21 $171.25 $256.81
MainStay VP Convertible.................................. $89.31 $143.95 $180.99 $277.30
MainStay VP Government................................... $88.16 $140.51 $175.15 $265.05
MainStay VP High Yield Corporate Bond.................... $87.98 $139.95 $174.19 $263.00
MainStay VP International Equity......................... $92.75 $154.21 $198.32 $313.21
MainStay VP Total Return................................. $88.07 $140.22 $174.67 $264.01
MainStay VP Value........................................ $88.55 $141.66 $177.10 $269.14
MainStay VP Bond......................................... $87.30 $137.94 $170.77 $255.77
MainStay VP Growth Equity................................ $87.21 $137.64 $170.26 $254.72
MainStay VP Indexed Equity............................... $85.97 $133.91 $163.90 $241.16
American Century Income & Growth......................... $90.65 $147.95 $187.76 $291.42
Dreyfus Large Company Value.............................. $91.61 $150.80 $192.57 $301.39
Eagle Asset Management Growth Equity..................... $90.65 $147.95 $187.76 $291.42
Lord Abbett Developing Growth............................ $91.61 $150.80 $192.57 $301.39
Alger American Small Capitalization...................... $91.13 $149.37 $190.17 $296.41
Calvert Social Balanced.................................. $91.04 $149.09 $189.69 $295.41
Fidelity VIP II Contrafund(R)............................ $88.74 $142.23 $178.08 $271.19
Fidelity VIP Equity-Income............................... $87.88 $139.66 $173.70 $261.96
Janus Aspen Series Balanced.............................. $88.93 $142.80 $179.05 $273.24
Janus Aspen Series Worldwide Growth...................... $89.22 $143.66 $180.50 $276.29
MFS(R) Growth With Income Series......................... $90.94 $148.81 $189.21 $294.42
MFS(R) Research Series................................... $90.75 $148.24 $188.25 $292.43
Morgan Stanley UIF Emerging Markets Equity............... $99.64 $174.50 $232.20 $381.29
T. Rowe Price Equity Income.............................. $90.65 $147.95 $187.76 $291.42
Van Eck Worldwide Hard Assets............................ $94.57 $159.60 $207.37 $331.65
</TABLE>

2. If you annuitize your Policy at the end of the stated time period:

<TABLE>
<CAPTION>
1 YEAR 3 YEARS 5 YEARS 10 YEARS
-------- -------- -------- --------
<S> <C> <C> <C> <C>
MainStay VP Capital Appreciation......................... $88.45 $ 73.29 $125.40 $268.13
MainStay VP Cash Management.............................. $87.40 $ 69.91 $119.76 $256.81
MainStay VP Convertible.................................. $89.31 $ 76.05 $130.01 $277.30
MainStay VP Government................................... $88.16 $ 72.37 $123.86 $265.05
MainStay VP High Yield Corporate Bond.................... $87.98 $ 71.76 $122.85 $263.00
MainStay VP International Equity......................... $92.75 $ 87.04 $148.24 $313.21
</TABLE>

- ------------
(1) For purposes of calculating these examples, we have expressed the annual
policy service charge as an annual percentage of assets based on the average
size of policies having an Accumulation Value of less than $10,000 on
December 31, 1999. This calculation method reasonably reflects the annual
policy service charges applicable to policies having an Accumulation Value
of less than $10,000. The annual policy service charge does not apply to
policies having an Accumulation Value of $10,000 or greater. The expenses
shown, therefore, would be slightly lower if your policy's Accumulation
Value is $10,000 or greater.

7
<PAGE> 8

<TABLE>
<CAPTION>
1 YEAR 3 YEARS 5 YEARS 10 YEARS
-------- -------- -------- --------
<S> <C> <C> <C> <C>
MainStay VP Total Return................................. $88.07 $ 72.06 $123.35 $264.01
MainStay VP Value........................................ $88.55 $ 73.60 $125.92 $269.14
MainStay VP Bond......................................... $87.30 $ 69.61 $119.25 $255.77
MainStay VP Growth Equity................................ $87.21 $ 69.29 $118.72 $254.72
MainStay VP Indexed Equity............................... $85.97 $ 65.30 $112.03 $241.16
American Century Income & Growth......................... $90.65 $147.95 $187.76 $291.42
Dreyfus Large Company Value.............................. $91.61 $ 83.39 $142.20 $301.39
Eagle Asset Management Growth Equity..................... $90.65 $ 80.33 $137.13 $291.42
Lord Abbett Developing Growth............................ $91.61 $ 83.39 $142.20 $301.39
Alger American Small Capitalization...................... $91.31 $ 81.86 $139.67 $296.41
Calvert Social Balanced.................................. $91.04 $ 81.55 $139.16 $295.41
Fidelity VIP II Contrafund(R)............................ $88.74 $ 74.21 $126.94 $271.19
Fidelity VIP Equity-Income............................... $87.88 $ 71.46 $122.33 $261.96
Janus Aspen Series Balanced.............................. $88.93 $ 74.82 $127.96 $273.24
Janus Aspen Series Worldwide Growth...................... $89.22 $ 75.74 $129.49 $276.29
MFS(R) Growth With Income Series......................... $90.94 $ 81.25 $138.65 $294.42
MFS(R) Research Series................................... $90.75 $ 80.64 $137.65 $292.43
Morgan Stanley UIF Emerging Markets Equity............... $99.64 $108.77 $183.90 $381.29
T. Rowe Price Equity Income.............................. $90.65 $ 80.33 $137.13 $291.42
Van Eck Worldwide Hard Assets............................ $94.57 $ 92.81 $157.77 $331.65
</TABLE>

3. If you do not surrender your policy:

<TABLE>
<CAPTION>
1 YEAR 3 YEARS 5 YEARS 10 YEARS
-------- -------- -------- --------
<S> <C> <C> <C> <C>
MainStay VP Capital Appreciation......................... $23.80 $ 73.29 $125.40 $268.13
MainStay VP Cash Management.............................. $22.68 $ 69.91 $119.76 $256.81
MainStay VP Convertible.................................. $24.72 $ 76.05 $130.01 $277.30
MainStay VP Government................................... $23.49 $ 72.37 $123.86 $265.05
MainStay VP High Yield Corporate Bond.................... $23.29 $ 71.76 $122.85 $263.00
MainStay VP International Equity......................... $28.39 $ 87.04 $148.24 $313.21
MainStay VP Total Return................................. $23.39 $ 72.06 $123.35 $264.01
MainStay VP Value........................................ $23.90 $ 73.60 $125.92 $269.14
MainStay VP Bond......................................... $22.58 $ 69.61 $119.25 $255.77
MainStay VP Growth Equity................................ $22.48 $ 69.29 $118.72 $254.72
MainStay VP Indexed Equity............................... $21.15 $ 65.30 $112.03 $241.16
American Century Income & Growth......................... $26.15 $ 80.33 $137.13 $291.42
Dreyfus Large Company Value.............................. $27.17 $ 83.39 $142.20 $301.39
Eagle Asset Management Growth Equity..................... $26.15 $ 80.33 $137.13 $291.42
Lord Abbett Developing Growth............................ $27.17 $ 83.39 $142.20 $301.39
Alger American Small Capitalization...................... $26.66 $ 81.86 $139.67 $296.41
Calvert Social Balanced.................................. $26.56 $ 81.55 $139.16 $295.41
Fidelity VIP II Contrafund(R)............................ $24.11 $ 74.21 $126.94 $271.19
Fidelity VIP Equity-Income............................... $23.19 $ 71.46 $122.33 $261.96
Janus Aspen Series Balanced.............................. $24.31 $ 74.82 $127.96 $273.24
Janus Aspen Series Worldwide Growth...................... $24.62 $ 75.74 $129.49 $276.29
MFS(R) Growth With Income Series......................... $26.46 $ 81.25 $138.65 $294.42
MFS(R) Research Series................................... $26.25 $ 80.64 $137.65 $292.43
Morgan Stanley UIF Emerging Markets Equity............... $35.74 $108.77 $183.90 $381.29
T. Rowe Price Equity Income.............................. $26.15 $ 80.33 $137.13 $291.42
Van Eck Worldwide Hard Assets............................ $30.34 $ 92.81 $157.77 $331.65
</TABLE>

THESE EXAMPLES SHOULD NOT BE CONSIDERED REPRESENTATIONS OF PAST OR FUTURE
PERFORMANCE OR EXPENSES AND THE ACTUAL EXPENSES PAID OR PERFORMANCE ACHIEVED MAY
BE GREATER OR LESS THAN THOSE SHOWN.

8
<PAGE> 9

QUESTIONS AND ANSWERS ABOUT NEW YORK LIFE
LIFESTAGES(R) FLEXIBLE PREMIUM VARIABLE ANNUITY

NOTE: THE FOLLOWING SECTION CONTAINS BRIEF QUESTIONS AND ANSWERS ABOUT NEW
YORK LIFE LIFESTAGES(R) FLEXIBLE PREMIUM VARIABLE ANNUITY. YOU SHOULD REFER TO
THE BODY OF THIS PROSPECTUS FOR MORE DETAILED INFORMATION.

1. WHAT IS NEW YORK LIFE LIFESTAGES(R) FLEXIBLE PREMIUM VARIABLE ANNUITY?

A New York Life LifeStages(R) Flexible Premium Variable Annuity is a
variable retirement annuity policy. NYLIAC issues the policy. You may allocate
premium payments to one or more of the Investment Divisions of each of the
Separate Accounts, or to the Fixed Account. The Accumulation Value will
fluctuate according to the performance of the Investment Divisions selected and
the interest credited to the amounts in the Fixed Account.

2. WHERE CAN I ALLOCATE MY PREMIUM PAYMENTS?

You can allocate your premium payments to one or more of the following
Allocation Alternatives:

(a) SEPARATE ACCOUNTS

Separate Account I is used for Non-Qualified Policies and Separate
Account II is used for Qualified Policies. Each of the Separate Accounts
consists of twenty-six Investment Divisions. They are listed on the
first page of this Prospectus. When you allocate a premium payment to
one of the Investment Divisions, the Separate Account will invest your
premium payment exclusively in shares of the corresponding Eligible
Portfolio of the relevant Fund.

(b) FIXED ACCOUNT

Each premium payment, or the portion of any premium payment, you
allocate to the Fixed Account will reflect a fixed interest rate. (See
"The Fixed Account" at page 36.)

3. CAN I MAKE TRANSFERS AMONG THE INVESTMENT DIVISIONS AND THE FIXED
ACCOUNT?

You can transfer all or part of the Accumulation Value of your policy
between the Investment Divisions or from the Investment Divisions to the Fixed
Account at least 30 days before the Annuity Commencement Date, but certain
restrictions apply. Generally, you can transfer a minimum amount of $500, unless
we agree otherwise. You can make transfers from the Fixed Account to the
Investment Divisions but certain restrictions apply. (See "The Fixed Account" at
page 36.) You may not transfer money into the Fixed Account if you transferred
money out of the Fixed Account during the previous six-month period.

You can make unlimited transfers each Policy Year. In addition, you can
request transfers through the Dollar Cost Averaging or the Automatic Asset
Reallocation options described at pages 26 and 27 of this Prospectus.

4. WHAT CHARGES ARE ASSESSED AGAINST THE POLICY?

Before the date we start making Income Payments to you, we will deduct a
policy service charge on each Policy Anniversary or upon surrender of the policy
if on that date the Accumulation Value is below $10,000. This charge will be the
lesser of $30 or 2% of the Accumulation Value at the end of the Policy Year or
on the date of surrender. In addition, we deduct on a daily basis a charge for
policy administration expenses. This charge is equal, on an annual basis, to
.10% of the net asset value of the applicable Separate Account. (See "Other
Charges" at page 29.)

The policies are also subject to a charge for certain mortality and expense
risks NYLIAC assumes. We also deduct this charge on a daily basis. This charge
is equal, on an annual basis, to 1.20% of the net asset value of the applicable
Separate Account. (See "Other Charges" at page 29.)

9
<PAGE> 10

We impose a surrender charge on certain partial withdrawals or surrenders
of the policies. This charge is assessed as a percentage of the amount withdrawn
during the first nine Policy Years. The percentage declines after the first
three Policy Years as follows:

<TABLE>
<CAPTION>
POLICY YEAR SURRENDER CHARGE
----------- ----------------
<S> <C>
1.......................................................... 7%
2.......................................................... 7%
3.......................................................... 7%
4.......................................................... 6%
5.......................................................... 5%
6.......................................................... 4%
7.......................................................... 3%
8.......................................................... 2%
9.......................................................... 1%
10+......................................................... 0%
</TABLE>

For applications signed on or after May 19, 2000, you can make withdrawals
from the policy free of surrender charges based on certain limitations. In any
one Policy Year, you may withdraw free of a surrender charge the greater of (a)
10% of the Accumulation Value at the time of the withdrawal or (b) the
Accumulation Value of the policy less the accumulated premium payments. (See
"Surrender Charges" and "Exceptions to Surrender Charges" at pages 28 and 29.)

For applications signed prior to May 19, 2000, you can make withdrawals
from the policy free of surrender charges based on certain limitations. In any
one Policy Year, you may withdraw free of a surrender charge up to 10% of the
Accumulation Value at the time of the withdrawal ("10% Window"). In addition,
for policies with total premium payments of $100,000 or more, you may withdraw
free of a surrender charge the greater of (a) the 10% Window or (b) the
Accumulation Value of the policy less the accumulated premium payments. (See
"Surrender Charges" and "Exceptions to Surrender Charges" at pages 28 and 29.)

Finally, the value of the shares of each Fund reflects advisory fees,
administration fees and other expenses deducted from the assets of each Fund.
(See the Fund prospectuses which are attached to this Prospectus.)

5. WHAT ARE THE MINIMUM INITIAL AND MAXIMUM ADDITIONAL PREMIUM PAYMENTS?

Unless we permit otherwise, the minimum initial premium payment for
Qualified Policies is as follows:

(a) for tax-sheltered annuities, $50 per month or a $2,000 single premium;

(b) for IRAs and Roth IRAs, $1,200 initial premium payment plus
pre-authorized monthly deductions of $100 per month, or pre-authorized
monthly deductions of $165 per month or a $2,000 single premium;

(d) for SEP plans, $600 initial premium payment or $50 per month if part of
a pre-authorized billing arrangement.

For Qualified Policies you may not make premium payments in excess of the
amount permitted by law for the plan indicated.

For Non-Qualified Policies, the minimum initial premium payment is a $5,000
single premium or a $2,500 premium payment plus $50 per month as either a
pre-authorized monthly deduction or as part of a pre-authorized monthly billing
arrangement. You can make additional premium payments of at least $50 each or
such lower amount as we may permit at any time. You have a choice of sending
premium payments directly to NYLIAC or through pre-authorized monthly deductions
from banks, credit unions or similar accounts and public or private employee
payroll deductions. The maximum aggregate amount of premium payments we accept
is $1,000,000, without prior approval.

For policies issued for delivery in New York from August 1995 to August
1997, the following minimum initial and maximum additional premium payment
requirements apply:

(a) For Non-Qualified Policies, the minimum single premium payment is
$2,500 plus $50 per month as either a pre-authorized monthly deduction
or as part of a pre-authorized monthly billing arrangement.

10
<PAGE> 11

The maximum total dollar amount of premium payments in any Policy Year
may not exceed $4,999.99.

(b) For Tax-Sheltered Annuity (TSA) policies, Section 457 deferred
compensation plan policies, Simplified Employee Pension (SEP) plan
policies and any other Qualified Policies, premium payments may only be
made through a pre-authorized billing arrangement. The maximum dollar
amount of scheduled premium payments may not exceed the applicable
annual plan limit as specified in the Internal Revenue Code.

(c) For TSA transfer premium payments made to an existing TSA policy, the
maximum dollar amount of transfer premium payments in the first Policy
Year may not exceed $1,999.99. For any additional TSA transfer premium
payments made in the second or subsequent Policy Years, the maximum
total dollar amount of annual transfer premium payments may not exceed
$4,999.99.

(d) For Individual Retirement Annuity (IRA) policies, the minimum premium
payment is $1,200 initial and $100 scheduled under a pre-authorized
monthly deduction arrangement, or $100 scheduled under a pre-authorized
monthly deduction arrangement, or $2,000 lump sum. For any additional
premium payments made in the second or subsequent Policy Years, the
maximum total dollar amount of annual premium payments may not exceed
$4,999.99.

6. HOW ARE PREMIUM PAYMENTS ALLOCATED?

We will hold the initial premium payment in the MainStay VP Cash Management
Investment Division for 15 days after we issue the policy. At the end of this
period, we will allocate the premium payment to the Investment Divisions and/or
Fixed Account you have selected.

You may allocate each premium payment in up to 18 Investment Divisions plus
the Fixed Account (See "Automatic Asset Reallocation" at page 27). Moreover, you
may raise or lower the percentages of the premium payment (which must be in
whole number percentages) you place in each Allocation Alternative at the time
you make a premium payment. However, any change to your allocations may not
result in the Accumulation Value being allocated to more than 18 Investment
Divisions plus the Fixed Account. The minimum amount which you may place in any
one Allocation Alternative is $25, or such lower amount as we may permit. We
reserve the right to limit the amount of a premium payment that you may place in
any one Allocation Alternative and the number of Investment Divisions to which
you allocate your Accumulation Value.

7. WHAT HAPPENS IF PREMIUM PAYMENTS ARE NOT MADE?

If we do not receive any premium payments for a period of two years, and
both the Accumulation Value of your policy and your total premium payments less
any withdrawals and surrender charges are less than $2,000, we reserve the right
to terminate your policy. We will notify you of our intention to exercise this
right and give you 90 days to make a premium payment. If we terminate your
policy, we will pay you the Accumulation Value of your policy in one lump sum.

8. CAN I WITHDRAW MONEY FROM THE POLICY BEFORE THE ANNUITY COMMENCEMENT
DATE?

You may make withdrawals from your policy before the Annuity Commencement
Date and while the Annuitant is still alive. Your withdrawal request must be in
a form that is acceptable to us. Under most circumstances, you may make a
minimum partial withdrawal of $500. Withdrawals may be subject to a surrender
charge. In addition, you may have to pay income tax and a 10% penalty tax may
apply if you are under age 59 1/2. (See "Distributions Under the Policy" at page
31 and "Federal Tax Matters" at page 37.)

9. HOW WILL NYLIAC MAKE INCOME PAYMENTS ON THE ANNUITY COMMENCEMENT DATE?

We will make Income Payments on a fixed basis. We do not currently offer a
variable income payment option. We will make payments under the Life Income
Payment Option over the life of the Annuitant with a guarantee of 10 years of
payments, even if the Annuitant dies sooner. Fixed Income Payments will always
be the same specified amount. (See "Income Payments" at page 33.) We may offer
other options, at our discretion, where permitted by state law.

11
<PAGE> 12

10. WHAT HAPPENS IF I DIE OR THE ANNUITANT DIES BEFORE THE ANNUITY
COMMENCEMENT DATE?

If you or the Annuitant dies before the Annuity Commencement Date, we will
pay the Beneficiary under the policy an amount equal to the greater of:

(a) the Accumulation Value, less any outstanding loan balance, or

(b) the sum of all premium payments made less any outstanding loan balance,
partial withdrawals and surrender charges previously imposed.

If the Beneficiary is the spouse of the Annuitant or the owner, see
Question 11. (Also see "Death Before Annuity Commencement" at page 32 and
"Federal Tax Matters" at page 37.)

11. WHAT HAPPENS IF MY SPOUSE IS THE BENEFICIARY?

If you are the owner and Annuitant and you die before the Annuity
Commencement Date, your spouse may continue the policy as the new owner and
Annuitant if he/she is also the sole Beneficiary (for Non-Qualified, IRA, Roth
IRA, TSA or SEP policies only). If your spouse chooses to continue the policy,
we will not pay the death benefit proceeds as a consequence of your death, or
the Annuitant's death.

12. CAN I RETURN THE POLICY AFTER IT IS DELIVERED?

You can cancel the policy by returning it to us, or to the registered
representative through whom you purchased it, within 10 days of delivery of the
policy or such longer period as required under state law. You will then receive
from us the greater of (i) the initial premium payment less any prior partial
withdrawals or (ii) the Accumulation Value on the date we receive the policy,
without any deduction for premium taxes or a surrender charge.

13. WHAT ABOUT VOTING RIGHTS?

You can instruct NYLIAC how to vote shares of the Funds in which you have a
voting interest through the applicable Separate Account. (See "Voting Rights" at
page 39.)

14. HOW WILL NYLIAC CALCULATE INVESTMENT PERFORMANCE OF THE SEPARATE
ACCOUNTS?

YIELDS. The yield of the MainStay VP Cash Management Investment Division
refers to the annualized income generated by an investment in that Investment
Division over a specified seven-day period. In calculating the yield, we assume
that the income generated for that seven-day period is generated each seven-day
period over a 52-week period. The current yield is shown as a percentage of the
investment. The effective yield is calculated similarly but, when annualized,
the income earned in the Cash Management Investment Division is assumed to be
reinvested. The effective yield will be slightly higher than the yield because
of the compounding effect of this assumed reinvestment. For the seven-day period
ending December 31, 1999, the MainStay VP Cash Management Investment Division's
yield for Separate Account-I was 4.60% and for Separate Account-II was 4.60%,
and the effective yield was 4.71% for Separate Account-I and 4.70% for Separate
Account-II.

The yield of the MainStay VP Government, MainStay VP High Yield Corporate
Bond or MainStay VP Bond Investment Divisions refers to the annualized income
generated in that Investment Division over a specified thirty-day period. In
calculating the yield we assume that the income generated by the investment
during that thirty-day period is generated each thirty-day period over a
12-month period. The current yield is shown as a percentage of the investment.
For the 30-day period ended December 31, 1999, the annualized yields for the
MainStay VP Government, MainStay VP High Yield Corporate Bond and MainStay VP
Bond Investment Divisions were 4.44%, 7.42% and 5.29% for Separate Account-I and
Separate Account-II.

The yield calculations do not reflect the effect of any surrender charge
that may be applicable to a particular policy. To the extent that the surrender
charge is applicable to a particular policy, the yield of that policy will be
reduced. Past performance is no indication of future performance. For additional
information regarding the yields described above, please refer to the Statement
of Additional Information.

TOTAL RETURN CALCULATIONS. The following tables present performance data
for each of the Investment Divisions of Separate Account-I for periods ending
December 31, 1999. The average annual total return (if surrendered) data reflect
all Separate Account and Fund annual expenses shown in the Fee Table on pages 4,
5 and 6. The average annual total return (if surrendered) figures assume that
the policy is surrendered at the end of the periods shown. The annual policy
service charge, which is charged to policies

12
<PAGE> 13

with an Accumulation Value of less than $10,000, is not reflected. This fee, if
applicable, would reduce the rates of return. The average annual total return
(no surrenders) does not reflect the deduction of any surrender charges. All
rates of return include the reinvestment of investment income, including
interest and dividends.

Certain Portfolios existed prior to the date that they were added to an
Investment Division of the Separate Account-I. For periods prior to an
Investment Division's inception date, the performance of the Investment Division
was derived from the performance of the corresponding Portfolios, as modified to
reflect the Separate Account and Fund annual expenses as if the policy had been
available during the periods shown. The results shown are not an estimate or
guarantee of future investment performance for the Investment Divisions:

13
<PAGE> 14

SEPARATE ACCOUNT-I
AVERAGE ANNUAL TOTAL RETURN
(FOR PERIODS ENDED DECEMBER 31, 1999)

<TABLE>
<CAPTION>
MAINSTAY VP MAINSTAY VP
CAPITAL CASH MAINSTAY VP MAINSTAY VP
INVESTMENT DIVISIONS: APPRECIATION MANAGEMENT CONVERTIBLE GOVERNMENT
--------------------- ------------ ----------- ----------- -----------
PORTFOLIO INCEPTION DATE: 1/29/93 1/29/93 10/1/96 1/29/93
- -----------------------------------------------------
INVESTMENT DIVISION INCEPTION DATE:
----------------------------------- 1/29/93 1/29/93 10/1/96 1/29/93
<S> <C> <C> <C> <C>
AVERAGE ANNUAL TOTAL RETURN (IF SURRENDERED)
1 Year............................................... 16.00% -3.03% 31.65% -9.12%
3 Year............................................... 25.41% 1.51% 16.02% 1.85%
5 Year............................................... 25.77% 2.87% -- 4.61%
10 Year.............................................. -- -- -- --
Since Portfolio Inception............................ 20.07% 2.89% 15.87% 3.75%
Since Investment Division Inception.................. 20.07% 2.89% 15.87% 3.75%
AVERAGE ANNUAL TOTAL RETURN (NO SURRENDERS)
1 Year............................................... 23.79% 3.49% 40.15% -3.01%
3 Year............................................... 27.19% 3.74% 18.09% 4.09%
5 Year............................................... 26.45% 3.82% -- 5.57%
10 Year.............................................. -- -- -- --
Since Portfolio Inception............................ 20.49% 3.30% 17.71% 4.16%
Since Investment Division Inception.................. 20.49% 3.30% 17.71% 4.16%
</TABLE>

<TABLE>
<CAPTION>
EAGLE ASSET
MANAGEMENT LORD ABBETT CALVERT ALGER AMERICAN
GROWTH DEVELOPING SOCIAL SMALL
INVESTMENT DIVISIONS: EQUITY GROWTH BALANCED CAPITALIZATION
--------------------- ----------- ----------- -------- --------------
PORTFOLIO INCEPTION DATE: 5/1/98 5/1/98 9/2/86 9/20/88
- -----------------------------------------------------
INVESTMENT DIVISION INCEPTION DATE:
----------------------------------- 6/1/98 6/1/98 6/1/95 10/1/96
<S> <C> <C> <C> <C>
AVERAGE ANNUAL TOTAL RETURN (IF SURRENDERED)
1 Year............................................... 54.93% 22.31% 3.84% 33.12%
3 Year............................................... -- -- 12.47% 19.14%
5 Year............................................... -- -- 15.58% 20.26%
10 Year.............................................. -- -- 10.61% 16.69%
Since Portfolio Inception............................ 43.30% 6.84% 10.22% 19.29%
Since Investment Division Inception.................. 47.53% 13.87% 14.13% 15.83%
AVERAGE ANNUAL TOTAL RETURN (NO SURRENDERS)
1 Year............................................... 63.43% 30.53% 10.82% 41.62%
3 Year............................................... -- -- 14.67% 21.10%
5 Year............................................... -- -- 16.51% 21.07%
10 Year.............................................. -- -- 10.61% 16.69%
Since Portfolio Inception............................ 47.26% 11.08% 10.22% 19.29%
Since Investment Division Inception.................. 51.76% 18.64% 15.23% 17.67%
</TABLE>

14
<PAGE> 15
<TABLE>
<CAPTION>
MAINSTAY VP AMERICAN
HIGH YIELD MAINSTAY VP MAINSTAY VP MAINSTAY VP MAINSTAY VP CENTURY
CORPORATE INTERNATIONAL TOTAL MAINSTAY VP MAINSTAY VP GROWTH INDEXED INCOME &
BOND EQUITY RETURN VALUE BOND EQUITY EQUITY GROWTH
----------- ------------- ----------- ----------- ----------- ----------- ----------- --------
5/1/95 5/1/95 1/29/93 5/1/95 1/23/84 1/23/84 1/29/93 5/1/98
<CAPTION>
6/1/985 5/1/95 1/29/93 5/1/95 5/1/95 12/15/93 1/29/93 6/1/98
<S> <C> <C> <C> <C> <C> <C> <C> <C>
<S> <C> <C> <C> <C> <C> <C> <C> <C>
4.04% 18.44% 8.23% 0.63% -8.89% 20.25% 11.64% 8.80%
5.68% 14.72% 16.97% 4.92% 2.04% 24.33% 23.78% --
-- -- 17.89% -- 4.96% 25.06% 25.80% --
-- -- -- -- 6.22% 16.76% -- --
9.34% 12.71% 13.99% 11.26% 7.85% 14.13% 19.16% 10.54%
9.34% 12.71% 13.99% 11.26% 3.52% 20.83% 19.16% 12.61%
11.42% 26.40% 15.51% 7.40% -2.77% 28.33% 19.14% 16.11%
8.00% 16.83% 19.00% 7.23% 4.27% 26.13% 25.60% --
-- -- 18.75% -- 5.93% 25.75% 26.47% --
-- -- -- -- 6.22% 16.76% -- --
10.42% 13.82% 14.44% 12.36% 7.85% 14.13% 19.59% 14.92%
10.42% 13.82% 14.44% 12.36% 3.99% 21.36% 19.59% 17.33%

<CAPTION>
<S> <C>
5/1/98
-1.26%
--
--
--
0.40%
1.89%
5.38%
--
--
--
4.39%
6.16%
</TABLE>
<TABLE>
<CAPTION>
MORGAN
JANUS ASPEN MFS(R) STANLEY UIF T. ROWE
FIDELITY VIP JANUS ASPEN SERIES GROWTH MFS(R) EMERGING PRICE
FIDELITY VIP II EQUITY- SERIES WORLDWIDE WITH INCOME RESEARCH MARKETS EQUITY
CONTRAFUND(R) INCOME BALANCED GROWTH SERIES SERIES EQUITY INCOME
--------------- ------------ ----------- ----------- ----------- -------- ----------- -------
1/3/95 10/9/86 9/13/93 9/13/93 10/9/95 7/26/95 10/1/96 3/31/94
<CAPTION>
6/1/9896 10/1/96 10/1/96 10/1/96 6/1/98 6/1/98 10/1/96 6/1/98
<S> <C> <C> <C> <C> <C> <C> <C> <C>
<S> <C> <C> <C> <C> <C> <C> <C> <C>
14.96% -1.62% 17.28% 53.89% -1.28% 14.77% 84.66% -4.04%
22.64% 11.29% 24.18% 34.02% 15.60% 18.09% 10.42% 9.36%
-- 16.17% 22.34% 31.33% -- -- -- 16.00%
-- 13.02% -- -- -- -- -- --
25.42% 12.19% 18.55% 27.67% 18.41% 19.64% 9.52% 14.99%
22.91% 12.34% 22.63% 32.48% 1.88% 14.74% 9.52% -1.77%
22.69% 4.99% 25.17% 62.39% 5.35% 22.49% 93.16% 2.42%
24.49% 13.53% 25.99% 35.58% 17.68% 20.09% 12.70% 11.68%
-- 17.09% 23.09% 31.89% -- -- -- 16.92%
-- 13.02% -- -- -- -- -- --
26.10% 12.19% 19.07% 28.03% 19.56% 20.66% 11.41% 15.73%
24.53% 14.27% 24.25% 33.86% 6.15% 19.55% 11.41% 2.35%

15
<PAGE> 16

For additional information regarding the total return calculations
described above, you should refer to the Statement of Additional Information.

16. ARE POLICY LOANS AVAILABLE?

If you have purchased your policy in connection with a tax-sheltered
annuity "TSA" (Section 403(b)) plan, you may be able to borrow some of your
Accumulation Value subject to certain conditions. (See "Loans" at page 34.)

17. HOW DO I CONTACT NYLIAC?

<TABLE>
<CAPTION>
GENERAL INQUIRIES AND WRITTEN REQUESTS PREMIUM PAYMENTS AND LOAN PAYMENTS
-------------------------------------- ----------------------------------
<S> <C> <C>
REGULAR MAIL NYLIAC Variable Products Service Center NYLIAC
Madison Square Station P.O. Box 19272
P.O. Box 922 Newark, NJ 07195-0272
New York, NY 10159 (or the address indicated
on your quarterly statement)
EXPRESS MAIL NYLIAC Variable Products Service Center NYLIAC-19272
51 Madison Avenue Lock Box-3W
Room 452 Bank of New York
New York, NY 10010 101 Barkclay St.
New York, NY 10007
CUSTOMER SERVICE (800) 598-2019
AND UNIT VALUES
</TABLE>

FINANCIAL STATEMENTS

The audited financial statements of NYLIAC (including the auditor's report)
for the fiscal years ended December 31, 1999, 1998 and 1997, and of the Separate
Accounts (including the auditor's report) for the period ended December 31, 1999
are included in the Statement of Additional Information.

16
<PAGE> 17

CONDENSED FINANCIAL INFORMATION

"The following Accumulation Unit values and the number of Accumulation
Units outstanding for each Investment Division for each fiscal year ended
December 31 presented below have been audited by PricewaterhouseCoopers LLP,
independent accountants. The Accumulation Unit values and the number of
Accumulation Units outstanding for each Investment Division as of December 31,
1999 and for the five years in the period then ended are derived from the
audited financial statements included in the Statement of Additional
Information. The Accumulation Unit values and the number of Accumulation Units
outstanding for each Investment Division as of December 31, 1994 and December
31, 1993 are derived from the financial statements not included elsewhere
herein."
<TABLE>
<CAPTION>
MAINSTAY VP MAINSTAY VP
CAPITAL APPRECIATION CASH MANAGEMENT
------------------------------------------------------------------------- -------------------
1999 1998 1997 1996 1995 1994 1993(a) 1999 1998
-------- -------- -------- -------- -------- -------- ------- -------- --------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
SEPARATE ACCOUNT I
Accumulation Unit value
(beginning of period)...... $29.35 $21.53 $17.66 $15.07 $11.24 $11.91 $10.00 $ 1.21 $ 1.16
Accumulation Unit value (end
of period)................. $36.34 $29.35 $21.53 $17.66 $15.07 $11.24 $11.91 $ 1.25 $ 1.21
Number of units outstanding
(in 000s) (end of
period).................... 12,611 12,433 11,857 10,890 7,852 5,702 2,239 46,932 34,013
SEPARATE ACCOUNT II
Accumulation Unit value
(beginning of period)...... $29.35 $21.53 $17.66 $15.07 $11.24 $11.91 $10.00 $ 1.21 $ 1.16
Accumulation Unit value (end
of period)................. $36.34 $29.35 $21.53 $17.66 $15.07 $11.24 $11.91 $ 1.25 $ 1.21
Number of units outstanding
(in 000s) (end of
period).................... 12,137 11,469 10,312 8,675 5,852 3,787 1,402 47,710 32,015

<CAPTION>
MAINSTAY VP
CASH MANAGEMENT
---------------------------------------------------
1997 1996 1995 1994 1993(a)
-------- -------- -------- -------- -------
<S> <C> <C> <C> <C> <C>
SEPARATE ACCOUNT I
Accumulation Unit value
(beginning of period)...... $ 1.12 $ 1.08 $ 1.04 $ 1.01 $ 1.00
Accumulation Unit value (end
of period)................. $ 1.16 $ 1.12 $ 1.08 $ 1.04 $ 1.01
Number of units outstanding
(in 000s) (end of
period).................... 25,689 24,436 19,554 19,630 15,549
SEPARATE ACCOUNT II
Accumulation Unit value
(beginning of period)...... $ 1.12 $ 1.08 $ 1.04 $ 1.01 $ 1.00
Accumulation Unit value (end
of period)................. $ 1.16 $ 1.12 $ 1.08 $ 1.04 $ 1.01
Number of units outstanding
(in 000s) (end of
period).................... 27,559 20,142 15,539 15,647 10,677
</TABLE>
<TABLE>
<CAPTION>

MAINSTAY VP MAINSTAY VP
CONVERTIBLE GOVERNMENT
---------------------------------------- ----------------------------------------------------
1999 1998 1997 1996(d) 1999 1998 1997 1996 1995
-------- -------- -------- ------- -------- -------- -------- -------- --------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
SEPARATE ACCOUNT I
Accumulation Unit value
(beginning of period)...... $12.13 $11.76 $10.32 $10.00 $13.68 $12.71 $11.76 $11.65 $10.11
Accumulation Unit value (end
of period)................. $16.99 $12.13 $11.76 $10.32 $13.26 $13.68 $12.71 $11.76 $11.65
Number of units outstanding
(in 000s) (end of
period).................... 915 847 636 154 5,186 3,288 2,749 3,177 3,281
SEPARATE ACCOUNT II
Accumulation Unit value
(beginning of period)...... $12.09 $11.73 $10.29 $10.00 $13.68 $12.71 $11.76 $11.65 $10.11
Accumulation Unit value (end
of period)................. $16.95 $12.09 $11.73 $10.29 $13.26 $13.68 $12.71 $11.76 $11.65
Number of units outstanding
(in 000s) (end of
period).................... 624 610 452 74 2,873 2,233 1,904 2,122 2,020

<CAPTION>
MAINSTAY VP
MAINSTAY VP HIGH YIELD
GOVERNMENT CORPORATE BOND
------------------ ---------------------------------------------------
1994 1993(a) 1999 1998 1997 1996 1995(c)
-------- ------- -------- -------- -------- -------- -------
<S> <C> <C> <C> <C> <C> <C> <C>
SEPARATE ACCOUNT I
Accumulation Unit value
(beginning of period)...... $10.44 $10.00 $14.26 $14.08 $12.62 $10.91 $10.00
Accumulation Unit value (end
of period)................. $10.11 $10.44 $15.89 $14.26 $14.08 $12.62 $10.91
Number of units outstanding
(in 000s) (end of
period).................... 3,686 2,843 9,761 10,373 9,539 5,449 1,446
SEPARATE ACCOUNT II
Accumulation Unit value
(beginning of period)...... $10.44 $10.00 $14.25 $14.06 $12.60 $10.89 $10.00
Accumulation Unit value (end
of period)................. $10.11 $10.44 $15.88 $14.25 $14.06 $12.60 $10.89
Number of units outstanding
(in 000s) (end of
period).................... 2,351 1,623 6,344 6,384 5,215 2,841 778
</TABLE>
<TABLE>
<CAPTION>
MAINSTAY VP
INTERNATIONAL MAINSTAY VP
EQUITY TOTAL RETURN
--------------------------------------------------- -----------------------------------------
1999 1998 1997 1996 1995(c) 1999 1998 1997 1996
-------- -------- -------- -------- ------- -------- -------- -------- --------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
SEPARATE ACCOUNT I
Accumulation Unit value
(beginning of period)...... $14.49 $11.92 $11.48 $10.53 $10.00 $22.03 $17.55 $15.10 $13.65
Accumulation Unit value (end
of period)................. $18.31 $14.49 $11.92 $11.48 $10.53 $25.44 $22.03 $17.55 $15.10
Number of units outstanding
(in 000s) (end of
period).................... 692 716 751 674 165 9,703 9,895 9,720 9,369
SEPARATE ACCOUNT II
Accumulation Unit value
(beginning of period)...... $14.50 $11.93 $11.49 $10.53 $10.00 $22.03 $17.55 $15.10 $13.65
Accumulation Unit value (end
of period)................. $18.32 $14.50 $11.93 $11.49 $10.53 $25.44 $22.03 $17.55 $15.10
Number of units outstanding
(in 000s) (end of
period).................... 547 532 553 426 112 8,546 8,406 7,911 7,185

MAINSTAY VP MAINSTAY VP
TOTAL RETURN VALUE
----------------------------- ---------------------------------------------------
1995 1994 1993(a) 1999 1998 1997 1996 1995(c)
-------- -------- ------- -------- -------- -------- -------- -------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
SEPARATE ACCOUNT I
Accumulation Unit value
(beginning of period)...... $10.77 $11.37 $10.00 $16.05 $16.96 $13.98 $11.50 $10.00
Accumulation Unit value (end
of period)................. $13.65 $10.77 $11.37 $17.24 $16.05 $16.96 $13.98 $11.50
Number of units outstanding
(in 000s) (end of
period).................... 7,579 6,584 3,067 4,158 4,718 4,277 2,522 658
SEPARATE ACCOUNT II
Accumulation Unit value
(beginning of period)...... $10.77 $11.37 $10.00 $16.10 $17.01 $14.02 $11.53 $10.00
Accumulation Unit value (end
of period)................. $13.65 $10.77 $11.37 $17.29 $16.10 $17.01 $14.02 $11.53
Number of units outstanding
(in 000s) (end of
period).................... 5,450 4,441 1,805 3,758 3,949 3,186 1,754 435
</TABLE>

- ------------
(a) For the period January 29, 1993 (commencement of operations) through
December 31, 1993.
(b) For the period December 15, 1993 (commencement of operations) through
December 31, 1993.
(c) For the period May 1, 1995 (commencement of operations) through December
31, 1995.
(d) For the period October 1, 1996 (commencement of operations) through
December 31, 1996.
(e) For the period June 1, 1998 (commencement of operations) through December
31, 1998.

17
<PAGE> 18
<TABLE>
<CAPTION>
MAINSTAY VP MAINSTAY VP
BOND GROWTH EQUITY
------------------------------------------------------------ ---------------------------------
1999 1998 1997 1996 1995 1994 1993(B) 1999 1998 1997 1996
------ ------ ------ ------ ------ ----- ------- ------ ------ ------ ------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
SEPARATE ACCOUNT I
Accumulation Unit value
(beginning of period)...... $13.04 $12.10 $11.18 $11.10 $ 9.51 $9.97 -- $25.13 $20.11 $16.07 $13.08
Accumulation Unit value (end
of period)................. $12.67 $13.04 $12.10 $11.18 $11.10 $9.51 -- $32.24 $25.13 $20.11 $16.07
Number of units outstanding
(in 000s) (end of
period).................... 2,772 2,823 2,249 2,080 1,733 961 -- 4,954 4,996 4,307 3,085
SEPARATE ACCOUNT II
Accumulation Unit value
(beginning of period)...... $13.04 $12.10 $11.18 $11.10 $ 9.51 $9.97 $10.00 $25.13 $20.11 $16.07 $13.08
Accumulation Unit value (end
of period)................. $12.67 $13.04 $12.10 $11.18 $11.10 $9.51 $ 9.97 $32.24 $25.13 $20.11 $16.07
Number of units outstanding
(in 000s) (end of
period).................... 2,296 2,190 1,655 1,591 1,314 641 3 4,618 4,300 3,451 2,336

<CAPTION>
MAINSTAY VP
GROWTH EQUITY
-------------------------
1995 1994 1993(B)
------ ------ -------
<S> <C> <C> <C>
SEPARATE ACCOUNT I
Accumulation Unit value
(beginning of period)...... $10.26 $10.27 $10.00
Accumulation Unit value (end
of period)................. $13.08 $10.26 $10.27
Number of units outstanding
(in 000s) (end of
period).................... 1,831 881 2
SEPARATE ACCOUNT II
Accumulation Unit value
(beginning of period)...... $10.26 $10.27 $10.00
Accumulation Unit value (end
of period)................. $13.08 $10.26 $10.27
Number of units outstanding
(in 000s) (end of
period).................... 1,403 514 3
</TABLE>
<TABLE>
<CAPTION>
AMERICAN
CENTURY
MAINSTAY VP INCOME & DREYFUS LARGE
INDEXED EQUITY GROWTH COMPANY VALUE
------------------------------------------------------------- ---------------- ----------------
1999 1998 1997 1996 1995 1994 1993(A) 1999 1998(E) 1999 1998(E)
------ ------ ------ ------ ------ ------ ------- ------ ------- ------ -------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
SEPARATE ACCOUNT I
Accumulation Unit value
(beginning of period)...... $28.96 $22.83 $17.41 $14.41 $10.66 $10.72 $10.00 $11.10 $10.00 $10.44 $10.00
Accumulation Unit value (end
of period)................. $34.50 $28.96 $22.83 $17.41 $14.41 $10.66 $10.72 $12.89 $11.10 $10.99 $10.44
Number of units outstanding
(in 000s) (end of
period).................... 8,592 8,414 6,724 4,768 3,677 3,236 2,187 562 302 216 125
SEPARATE ACCOUNT II
Accumulation Unit value
(beginning of period)...... $28.96 $22.83 $17.41 $14.41 $10.66 $10.72 $10.00 $11.10 $10.00 $10.58 $10.00
Accumulation Unit value (end
of period)................. $34.50 $28.96 $22.83 $17.41 $14.41 $10.66 $10.72 $12.89 $11.10 $11.14 $10.58
Number of units outstanding
(in 000s) (end of
period).................... 8,375 7,539 5,616 3,783 2,983 2,567 1,819 491 194 216 91

EAGLE ASSET LORD ABBETT
MANAGEMENT DEVELOPING
GROWTH EQUITY GROWTH
---------------- ----------------
1999 1998(E) 1999 1998(E)
------ ------- ------ -------
<S> <C> <C> <C> <C>
SEPARATE ACCOUNT I
Accumulation Unit value
(beginning of period)...... $11.86 $10.00 $10.05 $10.00
Accumulation Unit value (end
of period)................. $19.38 $11.86 $13.11 $10.05
Number of units outstanding
(in 000s) (end of
period).................... 317 64 198 87
SEPARATE ACCOUNT II
Accumulation Unit value
(beginning of period)...... $11.97 $10.00 $10.07 $10.00
Accumulation Unit value (end
of period)................. $19.55 $11.97 $13.14 $10.07
Number of units outstanding
(in 000s) (end of
period).................... 337 101 178 59
</TABLE>
<TABLE>
<CAPTION>
ALGER AMERICAN CALVERT FIDELITY
SMALL SOCIAL VIP II
CAPITALIZATION BALANCED CONTRAFUND(R)
---------------------------------- ------------------------------------------- ---------------
1999 1998 1997 1996(D) 1999 1998 1997 1996 1995(C) 1999 1998
------ ------ ------ ------- ------ ------ ------ ------ ------- ------ ------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
SEPARATE ACCOUNT I
Accumulation Unit value
(beginning of period)...... $11.99 $10.52 $ 9.56 $10.00 $17.51 $15.26 $12.87 $11.58 $10.00 $16.64 $12.97
Accumulation Unit value (end
of period)................. $16.98 $11.99 $10.52 $ 9.56 $19.40 $17.51 $15.26 $12.87 $11.58 $20.41 $16.64
Number of units outstanding
(in 000s) (end of
period).................... 1,154 999 722 129 230 201 154 69 24 3,195 2,796
SEPARATE ACCOUNT II
Accumulation Unit value
(beginning of period)...... $11.99 $10.51 $ 9.56 $10.00 $17.53 $15.28 $12.89 $11.59 $10.00 $16.32 $12.72
Accumulation Unit value (end
of period)................. $16.97 $11.99 $10.51 $ 9.56 $19.42 $17.53 $15.28 $12.89 $11.59 $20.02 $16.32
Number of units outstanding
(in 000s) (end of
period).................... 926 787 551 55 296 223 138 61 12 3,657 2,785

<CAPTION>
FIDELITY
VIP II
CONTRAFUND(R)
----------------
1997 1996(D)
------ -------
<S> <C> <C>
SEPARATE ACCOUNT I
Accumulation Unit value
(beginning of period)...... $10.58 $10.00
Accumulation Unit value (end
of period)................. $12.97 $10.58
Number of units outstanding
(in 000s) (end of
period).................... 1,844 240
SEPARATE ACCOUNT II
Accumulation Unit value
(beginning of period)...... $10.38 $10.00
Accumulation Unit value (end
of period)................. $12.72 $10.38
Number of units outstanding
(in 000s) (end of
period).................... 1,542 91
</TABLE>

18
<PAGE> 19
<TABLE>
<CAPTION>
JANUS ASPEN
JANUS ASPEN SERIES
FIDELITY VIP SERIES WORLDWIDE
EQUITY-INCOME BALANCED GROWTH
---------------------------------- ---------------------------------- ---------------
1999 1998 1997 1996(d) 1999 1998 1997 1996(d) 1999 1998
------ ------ ------ ------- ------ ------ ------ ------- ------ ------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
SEPARATE ACCOUNT I
Accumulation Unit value
(beginning of period)...... $14.70 $13.34 $10.55 $10.00 $16.19 $12.22 $10.14 $10.00 $15.90 $12.50
Accumulation Unit value (end
of period)................. $15.43 $14.70 $13.34 $10.55 $20.26 $16.19 $12.22 $10.14 $25.81 $15.90
Number of units outstanding
(in 000s) (end of
period).................... 2,033 1,895 1,138 77 3,300 1,813 802 94 4,073 3,491
SEPARATE ACCOUNT II
Accumulation Unit value
(beginning of period)...... $14.59 $13.25 $10.47 $10.00 $16.24 $12.25 $10.16 $10.00 $15.93 $12.52
Accumulation Unit value (end
of period)................. $15.32 $14.59 $13.25 $10.47 $20.32 $16.24 $12.25 $10.16 $25.86 $15.93
Number of units outstanding
(in 000s) (end of
period).................... 1,847 1,653 788 51 3,387 1,641 600 39 4,171 3,276

<CAPTION>
JANUS ASPEN
SERIES MFS(R) GROWTH MFS(R)
WORLDWIDE WITH INCOME RESEARCH
GROWTH SERIES SERIES
---------------- ---------------- ----------------
1997 1996(d) 1999 1998(e) 1999 1998(e)
------ ------- ------ ------- ------ -------
<S> <C> <C> <C> <C> <C> <C>
SEPARATE ACCOUNT I
Accumulation Unit value
(beginning of period)...... $10.36 $10.00 $10.44 $10.00 $10.84 $10.00
Accumulation Unit value (end
of period)................. $12.50 $10.36 $10.99 $10.44 $13.27 $10.84
Number of units outstanding
(in 000s) (end of
period).................... 2,632 256 217 107 164 82
SEPARATE ACCOUNT II
Accumulation Unit value
(beginning of period)...... $10.38 $10.00 $10.73 $10.00 $10.70 $10.00
Accumulation Unit value (end
of period)................. $12.52 $10.38 $11.30 $10.73 $13.10 $10.70
Number of units outstanding
(in 000s) (end of
period).................... 2,159 100 212 74 166 70
</TABLE>

<TABLE>
<CAPTION>
MORGAN STANLEY VAN ECK
UIF EMERGING T. ROWE PRICE WORLDWIDE
MARKETS EQUITY EQUITY INCOME HARD ASSETS
---------------------------------- ---------------- ---------------
1999 1998 1997 1996(d) 1999 1998(e) 1999 1998(e)
------ ------ ------ ------- ------ ------- ----- -------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
SEPARATE ACCOUNT I
Accumulation Unit value
(beginning of period)...... $ 7.36 $ 9.83 $ 9.93 $10.00 $10.13 $10.00 $7.71 $10.00
Accumulation Unit value (end
of period)................. $14.21 $ 7.36 $ 9.83 $ 9.93 $10.37 $10.13 $9.21 $ 7.71
Number of units outstanding
(in 000s) (end of
period).................... 578 515 452 78 394 192 58 32
SEPARATE ACCOUNT II
Accumulation Unit value
(beginning of period)...... $ 7.41 $ 9,90 $10.00 $10.00 $10.21 $10.00 $7.83 $10.00
Accumulation Unit value (end
of period)................. $14.32 $ 7.41 $ 9.90 $10.00 $10.45 $10.21 $9.36 $ 7.83
Number of units outstanding
(in 000s) (end of
period).................... 510 420 391 26 387 168 38 7
</TABLE>

19
<PAGE> 20

NEW YORK LIFE INSURANCE AND ANNUITY CORPORATION
AND THE SEPARATE ACCOUNTS

NEW YORK LIFE INSURANCE AND ANNUITY CORPORATION

New York Life Insurance and Annuity Corporation ("NYLIAC") is a stock life
insurance company incorporated in Delaware in 1980. NYLIAC is licensed to sell
life, accident and health insurance and annuities in the District of Columbia
and all states. In addition to the policies we describe in this Prospectus,
NYLIAC offers other life insurance policies and annuities.

NYLIAC is a wholly-owned subsidiary of New York Life Insurance Company
("New York Life"), a mutual life insurance company doing business in New York
since 1845. NYLIAC held assets of $29.669 billion at the end of 1999. New York
Life has invested in NYLIAC, and will occasionally make additional contributions
to NYLIAC in order to maintain capital and surplus in accordance with state
requirements.

THE SEPARATE ACCOUNTS

Each of the Separate Accounts was established on October 5, 1992, pursuant
to resolutions of the NYLIAC Board of Directors. The Separate Accounts are
registered as unit investment trusts with the Securities and Exchange Commission
under the Investment Company Act of 1940. The Securities and Exchange
Commission, however, does not supervise the management, or the investment
practices or policies, of the Separate Accounts.

Although the assets of each of the Separate Accounts belong to NYLIAC,
these assets are held separately from our other assets. The Separate Account
assets are not chargeable with liabilities incurred in any of NYLIAC's other
business operations (except to the extent that assets in the Separate Accounts
exceed the reserves and other liabilities of that Separate Account). The income,
capital gains and capital losses incurred on the assets of the Separate Accounts
are credited to or charged against the assets of those Separate Accounts,
without regard to the income, capital gains or capital losses arising out of any
other business NYLIAC may conduct. Therefore, the investment performance of the
Separate Accounts is entirely independent of both the investment performance of
the Fixed Account and any other separate account of NYLIAC.

Each of the Separate Accounts currently has 26 Investment Divisions.
Premium payments allocated to the Investment Divisions are invested solely in
the corresponding Eligible Portfolios of the relevant Fund.

THE PORTFOLIOS

The assets of each Eligible Portfolio are separate from the others and each
such Portfolio has different investment objectives and policies. As a result,
each Eligible Portfolio operates as a separate investment fund and the
investment performance of one Portfolio has no effect on the investment
performance of any other Portfolio. Portfolios described in this prospectus are
different from portfolios available directly to the general public. Investment
results may differ.

WE OFFER NO ASSURANCE THAT ANY OF THE ELIGIBLE PORTFOLIOS WILL ATTAIN THEIR
RESPECTIVE STATED OBJECTIVES

The Funds also make their shares available to certain other separate
accounts funding variable life insurance policies offered by NYLIAC. This is
called "mixed funding." Except for MainStay VP Series Fund, all other Funds also
make their shares available to separate accounts of insurance companies
unaffiliated with NYLIAC. This is called "shared funding." Although we do not
anticipate any inherent difficulties arising from mixed and shared funding, it
is theoretically possible that, due to differences in tax treatment or other
considerations, the interests of owners of various contracts participating in a
certain Fund might at some time be in conflict. The Board of Directors/Trustees
of each Fund, each Fund's investment advisers, and NYLIAC are required to
monitor events to identify any material conflicts that arise from the use of the
Funds for mixed and shared funding. For more information about the risks of
mixed and shared funding, please refer to the relevant Fund prospectus.

We provide certain services to you in connection with the investment of
premium payments in the Investment Divisions, which, in turn, invest in the
Eligible Portfolios. These services include, among others, providing information
about the Eligible Portfolios. We receive a service fee from the investment
advisers or other service providers of some of the Funds in return for providing
services of this type. Currently, we receive service fees at annual rates
ranging from .10% to .21% of the aggregate net asset value of the shares of some
of the Eligible Portfolios held by the Investment Divisions.

20
<PAGE> 21

The Eligible Portfolios of the relevant Funds, along with their investment
advisers, are listed in the following table:
- --------------------------------------------------------------------------------

<TABLE>
<CAPTION>
FUND INVESTMENT ADVISERS ELIGIBLE PORTFOLIOS
<S> <C> <C>
MainStay VP Series Fund, Inc. MacKay Shields LLC MainStay VP Capital Appreciation;
MainStay VP Cash Management;
MainStay VP Convertible;
MainStay VP Government;
MainStay VP High Yield Corporate Bond;
MainStay VP International Equity; MainStay VP
Total Return;
MainStay VP Value
MainStay VP Series Fund, Inc. Monitor Capital Advisors LLC MainStay VP Indexed Equity
MainStay VP Series Fund, Inc. Madison Square Advisors LLC MainStay VP Bond;
MainStay VP Growth Equity
MainStay VP Series Fund, Inc. New York Life Insurance Company MainStay VP American Century Income & Growth;
MainStay VP Dreyfus Large Company Value;
MainStay VP Eagle Asset Management Growth
Equity;
MainStay VP Lord Abbett Developing Growth
The Alger American Fund Fred Alger Management, Inc. Alger American Small Capitalization
Calvert Variable Series, Inc. Calvert Asset Management Company, Calvert Social Balanced
Inc.
Fidelity Variable Insurance Fidelity Management and Research Fidelity VIP II Contrafund(R)
Products Fund II Company
Fidelity Variable Insurance Fidelity Management and Research Fidelity VIP Equity-Income
Products Fund Company
Janus Aspen Series Janus Capital Corporation Janus Aspen Series Balanced;
Janus Aspen Series Worldwide Growth
MFS(R) Variable Insurance MFS Investment Management(R) MFS(R) Growth With Income Series;
Trust(SM) MFS(R) Research Series
The Universal Institutional Funds, Morgan Stanley Asset Management Morgan Stanley UIF Emerging Markets Equity
Inc.
T. Rowe Price Equity Series, Inc. T. Rowe Price Associates, Inc. T. Rowe Price Equity Income
Van Eck Worldwide Insurance Trust Van Eck Associates Corporation Van Eck Worldwide Hard Assets
</TABLE>

Please refer to the attached prospectuses of the respective Funds for a complete
description of the Funds, the investment advisers and the Portfolios. The Funds'
prospectuses should be read carefully before any decision is made concerning the
allocation of premium payments to an Investment Division corresponding to a
particular Eligible Portfolio.

ADDITIONS, DELETIONS OR SUBSTITUTIONS OF INVESTMENTS

NYLIAC retains the right, subject to any applicable law, to make additions
to, deletions from, or substitutions for, the Eligible Portfolio shares held by
any Investment Division. NYLIAC reserves the right to eliminate the shares of
any of the Eligible Portfolios and to substitute shares of another portfolio of
a Fund, or of another registered open-end management investment company. We may
do this if the shares of the Eligible Portfolios are no longer available for
investment, or if we believe investment in any Eligible Portfolio would become
inappropriate in view of the purposes of the Separate Accounts. To the extent
required by law, we will not make substitutions of shares attributable to your
interest in an Investment Division until you have been notified of the change.
This does not prevent the Separate Accounts from purchasing other securities for
other series or classes of policies, or from processing a conversion between
series or classes of policies on the basis of requests made by policy owners.

21
<PAGE> 22

We may establish new Investment Divisions when we determine in our sole
discretion that marketing, tax, investment or other conditions so warrant. We
will make new Investment Divisions available to existing policy owners on a
basis we determine. We may also eliminate one or more Investment Divisions, if
we determine, in our sole discretion, that marketing, tax, investment or other
conditions warrant.

In the event of any substitution or change, NYLIAC may, by appropriate
endorsement, change the policies to reflect such substitution or change. We also
reserve the right to: (a) operate the Separate Accounts as management companies
under the Investment Company Act of 1940, (b) deregister them under such Act in
the event such registration is no longer required, (c) combine the Separate
Accounts with one or more other separate accounts, and (d) restrict or eliminate
the voting rights of persons having voting rights as to the Separate Accounts,
as permitted by law.

REINVESTMENT

We automatically reinvest all dividends and capital gain distributions from
Eligible Portfolios in shares of the distributing Portfolio at their net asset
values on the payable date.

THE POLICIES

This is a flexible premium policy, which means that additional premium
payments can be made. It is issued on the lives of individual Annuitants.

The policies are variable. This means that the Accumulation Value will
fluctuate based on the investment experience of the Investment Divisions you
select. The interest credited on the Fixed Accumulation Value will also vary.
NYLIAC does not guarantee the investment performance of the Separate Accounts or
of the Funds. You bear the entire investment risk with respect to amounts
allocated to the Investment Divisions of the Separate Accounts. We offer no
assurance that the investment objectives of the Investment Divisions will be
achieved. Accordingly, amounts allocated to the Investment Divisions of the
Separate Accounts are subject to the risks inherent in the securities markets
and, specifically, to price fluctuations in the Funds' investments.

As the owner of the policy, you have the right to (a) change the
Beneficiary, (b) name a new owner (on Non-Qualified Policies only), (c) receive
Income Payments and (d) name a payee to receive Income Payments. You cannot lose
these rights. However, all rights of ownership cease upon your death.

SELECTING THE VARIABLE ANNUITY THAT'S RIGHT FOR YOU

In addition to the policies described in this prospectus, we offer other
variable annuities, each having different features, fees and charges. Your
registered representative can help you decide which is best for you based on
your individual circumstances, time horizon and liquidity preferences. The
LifeStages(R) Flexible Premium Variable Annuity is designed generally for
purchasers with a long time horizon who intend to make multiple contributions to
the policy over time. The LifeStages(R) Variable Annuity is designed generally
for purchasers with an intermediate time horizon who intend to make a single
contribution or a limited number of contributions to the policy. The
LifeStages(R) Access Variable Annuity* is designed generally for purchasers with
a shorter time horizon. Although there is no surrender charge under a
LifeStages(R) Access Variable Annuity, other charges are somewhat higher than
those in other policies.

- ---------------
* For applications signed issued on or after May 19, 2000, in states where
approved.
22
<PAGE> 23

The chart below outlines some of the different features for each
LifeStages(R) variable annuity we offer. Your registered representative can
provide you with a prospectus for one or more of these annuities, which contains
more complete information.

<CAPTION>
LIFESTAGES(R)
LIFESTAGES(R) FLEXIBLE LIFESTAGES(R) ACCESS
PREMIUM VARIABLE ANNUITY VARIABLE ANNUITY VARIABLE ANNUITY(1)
<S> <C> <C> <C>
<S> <C> <C> <C>
Fixed Account Yes Yes (1% additional rate Yes
credited to monies deposited
directly into Fixed Account)
DCA Advantage Plan No Yes (6, 12, 18 month accounts No
are available)(1)
Surrender Charge 9 Years (7%, 7%, 7%, 6%, 5%, 6 Years (7%, 7%, 7%, 6%, 5%, N/A
Period 4%, 3%, 2%, 1%) (Based on 4%) (Based on each premium
policy date) payment date)
Death Benefit 3 Year Reset to Age 85 Annual Reset to Age 85(1) Annual Reset to Age
Guarantee 80
Total Separate 1.40%* 1.40% 1.55%
Account Charges
(mortality and
expense risk charge
and administration
fee)
Annual Policy Fee $30 $30 $40
Minimum Cash Value $20,000* $20,000 $50,000
Required to Waive
Policy Fee
</TABLE>

All policies and features may not be available in all states.
* May be lower in some states.
(1) For applications signed on or after May 19, 2000, in states where approved.

QUALIFIED AND NON-QUALIFIED POLICIES

We designed the policies primarily for the accumulation of retirement
savings, and to provide income at a future date. We issue both Qualified and
Non-Qualified Policies. Both types of policies offer tax-deferred accumulation.
You may purchase a Non-Qualified Policy with after-tax dollars to provide for
retirement income other than through a tax-qualified plan. You may purchase a
Qualified Policy with pre-tax dollars for use with any one of the tax-qualified
plans listed below.

(1) Section 403(b) Tax Sheltered Annuities purchased by employees of
certain tax-exempt organizations and certain state-supported
educational institutions;

(2) Section 408 or 408A Individual Retirement Annuities ("IRAs"), including
Roth IRAs;

(3) Section 457 Deferred Compensation Plans.

Please see "Federal Tax Matters" at page 37 for a detailed description of
these plans.

If you are considering a Qualified Policy, you should be aware that there
are fees and charges in an annuity that may not be included in other types of
investments which may be more or less costly. However, the fees and charges
under the policies are designed to provide for certain payment guarantees and
features that may not be available in these other types of investments. They
include:

(1) a Fixed Account option, which features a guaranteed fixed interest
rate;

(2) a death benefit that is payable should you die while the policy is in
force and is guaranteed to be at least the amount of your premium
payments, less any outstanding loan balance, partial withdrawals and
surrender charges;

(3) the option for your Beneficiary to receive a guaranteed amount of
monthly income for his or her lifetime should you die prior to the
Annuity Commencement Date;
23
<PAGE> 24

(4) the option to receive a guaranteed amount of monthly income for life
after the First Policy Year; and

(5) two riders (an Unemployment Benefit Rider and a Living Needs Benefit
Rider), which allow you to withdraw money from your policy without the
imposition of surrender charges, subject to the terms of each rider.

These features are explained in detail in this Prospectus. You should
consult with your tax or legal advisor to determine if the policy is suitable
for your tax qualified plan.

POLICY APPLICATION AND PREMIUM PAYMENTS

You can purchase a policy by completing an application. The application is
sent to us with your initial premium payment to NYLIAC. For salary reduction
plans, the application is sent to NYLIAC and the policy becomes part of the
pre-authorized billing arrangement. If the application is accurate and complete,
and we have received all other information necessary to process the application,
we will credit the initial premium payment within two Business Days after
receipt. If we cannot credit the initial premium payment within five Business
Days after we receive it because the application is incomplete or inaccurate, we
will contact you and explain the reason for the delay. Unless you consent to
NYLIAC's retaining the initial premium payment and crediting it as soon as the
necessary requirements are fulfilled, we will offer to refund the initial
premium payment immediately. Acceptance of applications is subject to NYLIAC's
rules. We reserve the right to reject any application or initial premium
payment. Our rules generally require that only one policy owner be named.
However, there are exceptions to these rules, such as when the application is
related to certain exchanges of in-force annuities in accordance with Section
1035 of the Internal Revenue Code.

We will allocate the initial premium payments to the MainStay VP Cash
Management Investment Division until 15 days after the policy issued. At the end
of this period, we will allocate premium payments in accordance with your
instructions. We credit subsequent premium payments to the policy at the close
of the Business Day on which they are deposited by NYLIAC. You are encouraged to
send subsequent premium payments directly as indicated on page 16.

You may allocate premium payments in up to 18 Investment Divisions plus the
Fixed Account. Moreover, you may increase or decrease the percentages of the
premium payments (which must be in whole number percentages) allocated to each
Allocation Alternative at the time a premium payment is made. However, any
change to the policy's allocations may not result in the Accumulation value
being allocated to more than 18 Investment Divisions plus the Fixed Account.

Unless we permit otherwise, the minimum initial premium payment for
Qualified Policies is as follows:

(a) for tax-sheltered annuities, $50 per month or a $2,000 single
premium;

(b) for IRAs, $1,200 initial premium payment plus pre-authorized
monthly deductions of $100 per month, or pre-authorized monthly
deductions of $165 per month or a $2,000 single premium;

(d) for SEP plans, $600 initial premium payment or $50 per month if
part of a pre-authorized billing arrangement.

For Non-Qualified Policies, the minimum initial premium payment is $5,000
single premium or a $2,500 premium payment plus $50 per month as either
pre-authorized monthly deduction or as part of a pre-authorized monthly billing
arrangement. You may make additional premium payments of at least $50 each or
such lower amount as we may permit at any time and by any method NYLIAC makes
available. The currently available methods of payment are direct payments to
NYLIAC, pre-authorized monthly deductions from your bank, a credit union or
similar accounts and public and private employee payroll deductions. You may
make premium payments at any time before the Annuity Commencement Date and while
you and the Annuitant are living. The maximum aggregate amount of premium
payments we accept is $1,000,000 without prior approval. NYLIAC reserves the
right to limit the dollar amount of any premium payment.

For Qualified Policies, you may not make premium payments in any Policy
Year that exceed the amount permitted by the plan or by law. NYLIAC also
reserves the right in its discretion to accept premium payments of less than
$50, provided such discretion is exercised in a non-discriminatory manner.

24
<PAGE> 25

PAYMENTS RETURNED FOR INSUFFICIENT FUNDS

If your premium payment is returned for insufficient funds, we reserve the
right to reverse the investment options chosen and charge you a $20.00 fee for
each returned payment. In addition, the Fund may also redeem shares to cover any
losses it incurs as a result of a returned payment. If a payment is returned for
insufficient funds for two consecutive periods, the privilege to pay by check or
electronically will be suspended until you notify us to reinstate it, and we
agree.

YOUR RIGHT TO CANCEL ("FREE LOOK")

You may cancel the policy by returning it to us, or to the registered
representative through whom you purchased it, within 10 days of delivery of the
policy or such longer period as required under state law. In states where
approved, you will receive the policy's Accumulation Value on the date we
receive the policy, but without any deduction for premium taxes or a surrender
charge. This amount may be more or less than your premium payments. Otherwise,
you will receive from us the greater of (i) the initial premium payment less any
prior partial withdrawals or (ii) the Accumulation Value on the date we receive
the policy, but without any deduction for premium taxes or a surrender charge.
We will set forth the provision in your policy.

ISSUE AGES

We can issue Non-Qualified Policies if both you and the Annuitant are not
older than age 85 (age 78 in Pennsylvania and age 80 in New York). We will
accept additional premium payments until either you or the Annuitant reaches the
age of 85, unless we agree otherwise. For IRA, Roth IRA, TSA and SEP plans, you
must also be Annuitant. We can issue Qualified Policies if the Owner/Annuitant
is between the ages of 18 and 80. We will accept additional premium payments
until the Owner/Annuitant reaches the age of 80, unless otherwise limited by the
terms of a particular plan or unless we agree otherwise.

TRANSFERS

You may transfer amounts between Investment Divisions of the same Separate
Account or to the Fixed Account at least 30 days before the Annuity Commencement
Date. Except in connection with transfers made pursuant to the Dollar Cost
Averaging, Automatic Asset Reallocation, and Interest Sweep options, the minimum
that you may transfer from one Investment Division to other Investment Divisions
within the same Separate Account or to the Fixed Account is $500. Except for the
Dollar Cost Averaging, Automatic Asset Reallocation and Interest Sweep options,
if the value of the remaining Accumulation Units in an Investment Division or
the Fixed Account would be less than $500 after you make a transfer, we will
transfer the entire value unless NYLIAC in its discretion determines otherwise.
The amount(s) transferred to other Investment Divisions must be a minimum of $25
for each Investment Division.

There is no charge for the first twelve transfers in any one Policy Year.
NYLIAC reserves the right to charge up to $30 for each transfer in excess of
twelve, subject to any applicable state insurance law requirements. Any transfer
made in connection with the Dollar Cost Averaging, Automatic Asset Reallocation
and Interest Sweep options will not count as a transfer toward the twelve
transfer limit. You can make transfers from the Fixed Account to the Investment
Divisions in connection with the Interest Sweep option and in certain other
situations. Transfers into the Fixed Account may be subject to restrictions.
(See "Fixed Account" at page 36.)

Your transfer requests must be in writing on a form approved by NYLIAC or
by telephone in accordance with established procedures. (See "Procedures for
Telephone Transfers" below). We will make transfers from Investment Divisions
based on the Accumulation Unit values at the end of the Business Day on which we
receive the transfer request. (See "Delay of Payments" at page 34.) Transfers
may be limited in connection with Third Party Investment Advisory Arrangements.
(See page 28.)

PROCEDURES FOR TELEPHONE TRANSFERS

You may make telephone transfers in two ways: (1) you may directly contact
a service representative or (2) you may also request access to an electronic
service known as a Voice Response Unit (VRU). The VRU permits you to transfer
monies among the Investment Divisions and/or the Fixed Account and change the
allocation of future premium payments. You can elect this feature by completing
and signing a Telephone Authorization Form. However, we reserve the right to
temporarily discontinue the availability of the VRU.

25
<PAGE> 26

We will use reasonable procedures to confirm that instructions communicated
by telephone are genuine. Before a service representative accepts any request,
the caller will be asked for his or her social security number and address. All
calls will be recorded. We will assign a personal identification number (PIN) to
all policy owners who request VRU access. You must properly enter the PIN before
we allow any transactions through the VRU. Furthermore, we will confirm all
telephone transactions in writing.

NYLIAC is not liable for any loss, cost or expense for action on telephone
instructions which are believed to be genuine in accordance with these
procedures. We must receive telephone transfer requests no later than 4:00 p.m.
Eastern Time in order to assure same-day processing. We will process requests
received after 4:00 p.m. on the next Business Day.

DOLLAR COST AVERAGING

The main objective of Dollar Cost Averaging is to achieve an average cost
per share that is lower than the average price per share during volatile market
conditions. Since you transfer the same dollar amount to an Investment Division
with each transfer, you purchase more units in an Investment Division if the
value per unit is low and fewer units if the value per unit is high. Therefore,
you achieve a lower than average cost per unit if prices fluctuate over the long
term. Similarly, for each transfer out of an Investment Division, you sell more
units in an Investment Division if the value per unit is low and fewer units if
the value per unit is high. Dollar Cost Averaging does not assure a profit or
protect against a loss in declining markets. Because it involves continuous
investing regardless of price levels, you should consider your financial ability
to continue to make purchases during periods of low price levels. We do not
count transfers under dollar cost averaging as part of your 12 free transfers
each Policy Year.

Under this option, you may specify, prior to the Annuity Commencement Date,
a specific dollar amount to be transferred from any Investment Divisions to any
combination of Investment Divisions and/or the Fixed Account. You will specify
the Investment Divisions to transfer money from, the Investment Divisions and/or
Fixed Account to transfer money to, the amounts to be transferred, the date on
which transfers will be made, subject to our rules, and the frequency of the
transfers (either monthly, quarterly, semi-annually or annually). You may not
make transfers from the Fixed Account, but you may make transfers into the Fixed
Account. Each transfer from an Investment Division must be at least $100. You
must have a minimum Accumulation Value of $5,000 to elect this option. NYLIAC
may reduce the minimum transfer amount and minimum Accumulation Value at its
discretion.

NYLIAC will make all dollar cost averaging transfers on the day of each
calendar month that you specify or on the next Business Day (if the day you have
specified is not a Business Day). You may specify any day of the month with the
exception of the 29th, 30th or 31st of a month. In order to process a transfer,
NYLIAC must have received a request in writing no later than one week prior to
the date the transfers are to begin.

You may cancel the Dollar Cost Averaging option at any time in a written
request. NYLIAC may also cancel this option if the Accumulation Value is less
than $5,000, or such lower amount as we may determine. You may not elect the
Dollar Cost Averaging option if you have selected the Automatic Asset
Reallocation option.

We have set forth below an example of how dollar cost averaging works. In
the example, we have assumed that you want to move $100 from the Cash Management
Investment Division to the MainStay VP Growth Equity Investment Division each
month. Assuming the Accumulation Unit values below, you would purchase the
following number of Accumulation Units:

AMOUNT ACCUMULATION ACCUMULATION UNITS
MONTH TRANSFERRED UNIT VALUE PURCHASED
<S> <C> <C> <C>
1 $100 $10.00 10.00
2 $100 $ 8.00 12.50
3 $100 $12.50 8.00
4 $100 $ 7.50 13.33
Total $400 $38.00 43.83
</TABLE>

26
<PAGE> 27

The average unit price is calculated as follows:

<TABLE>
<S> <C> <C> <C> <C>
Total share price $38.00
- -------------------- = ------ = $9.50
Number of months 4
</TABLE>

The average unit cost is calculated as follows:

<TABLE>
<S> <C> <C> <C> <C>
Total amount transferred $400.00
- ------------------------ = ------- = $9.13
Total units purchased 43.83
</TABLE>

In this example, you would have paid an average cost of $9.13 per unit
while the average price per unit is $9.50.

AUTOMATIC ASSET REALLOCATION

This option allows you to maintain the percentage allocated to each
Investment Division at a pre-set level. For example, you might specify that 50%
of the Variable Accumulation Value of your policy be allocated to the MainStay
VP Convertible Investment Division and 50% of the Variable Accumulation Value be
allocated to the MainStay VP International Equity Investment Division. Over
time, the fluctuations in each of these Investment Divisions will shift the
percentages. If you elect Automatic Asset Reallocation, NYLIAC will
automatically transfer your Variable Accumulation Value back to the percentages
you specify. You may choose to have reallocations made quarterly, semi-annually
or annually. You must also specify the day of the month that reallocations are
to occur (with the exception of the 29th, 30th or 31st of a month). The minimum
Variable Accumulation Value required to elect this option is $5,000. There is no
minimum amount which you must allocate among the Investment Divisions under this
option. However, the Variable Accumulation Value may not be allocated to more
than 18 Investment Divisions if you selected the Automatic Asset Reallocation
option.

You may cancel the Automatic Asset Reallocation option at any time in a
written request. NYLIAC may also cancel this option if the Accumulation Value is
less than $5,000, or such a lower amount as we may determine. You may not elect
the Automatic Asset Reallocation option if you have selected the Dollar Cost
Averaging option.

INTEREST SWEEP

You can request, prior to the Annuity Commencement Date, that interest
earned on monies allocated to the Fixed Account be transferred from the Fixed
Account to any combination of Investment Divisions. You will specify the
Investment Divisions, the frequency of the transfers (either monthly, quarterly,
semi-annually or annually) and the day of each calendar month to make the
transfers (except the 29th, 30th or 31st of a month). The minimum Fixed
Accumulation Value required to elect this option is $5,000, but this amount may
be reduced at our discretion. NYLIAC will make all Interest Sweep transfers on
the day of each calendar month you specify or on the next Business Day (if the
day you have specified is not a Business Day).

You may request the Interest Sweep option in addition to either the Dollar
Cost Averaging or Automatic Asset Reallocation options. If an Interest Sweep
transfer is scheduled for the same day as a Dollar Cost Averaging or Automatic
Asset Reallocation transfer, we will process the Interest Sweep transfer first.

YOU MAY NOT TRANSFER MORE THAN 20% of the Fixed Accumulation Value at the
beginning of the Policy Year from the Fixed Account to the Investment Divisions
during a Policy Year. (See "The Fixed Account -- Transfers to Investment
Divisions" at page 36.) If an Interest Sweep option transfer would cause more
than 20% of the Fixed Accumulation Value at the beginning of the Policy Year to
be transferred from the Fixed Account, we will not process the transfer and the
Interest Sweep option will be automatically suspended.

You can cancel the Interest Sweep option at any time in a written request.
We may also cancel this option if the Fixed Accumulation Value is less than
$5,000 or such a lower amount as we may determine.

ACCUMULATION PERIOD

(a) Crediting of Premium Payments

You can allocate a portion of each premium payment to one or more
Investment Divisions or the Fixed Account. The minimum amount that you may
allocate to any one Investment Division or the Fixed Account is $25 (or such
lower amount as we may permit). We will place the initial premium payment in the
MainStay VP Cash Management Investment Division until 15 days after we issue the
policy. At the end of this period, we

27
<PAGE> 28

will allocate the premium payments to the Investment Divisions and/or the Fixed
Account as requested. We will allocate all additional premium payments to the
Investment Divisions and/or Fixed Account as requested.

We will credit that portion of each premium payment you allocate to an
Investment Division in the form of Accumulation Units. We determine the number
of Accumulation Units we credit to a policy by dividing the amount allocated to
each Investment Division by the Accumulation Unit value for that Investment
Division on the day we are making this calculation. The value of an Accumulation
Unit will vary with the investment experience of the Portfolio in which the
Investment Division invests. The number of Accumulation Units we credit to a
policy will not, however, change as a result of any fluctuations in the value of
an Accumulation Unit. (See "The Fixed Account" at page 36 for a description of
interest crediting.)

(b) Valuation of Accumulation Units

The value of Accumulation Units in each Investment Division will change
daily to reflect the investment experience of the corresponding Portfolio as
well as the daily deduction of the Separate Accounts' charges. The Statement of
Additional Information contains a detailed description of how we value the
Accumulation Units.

THIRD PARTY INVESTMENT ADVISORY ARRANGEMENTS

In some cases, the policy may be sold to policy owners who independently
utilize the services of a third party advisor offering asset allocation and/or
market timing services. NYLIAC may honor transfer and withdrawal instructions
from such asset allocation and market timing services if it has received
authorization to do so from the policy owner participating in the service. We do
not endorse, approve or recommend such services in any way and you should be
aware that fees paid for such services are separate from and in addition to fees
paid under the policy.

Because the amounts associated with some of these transactions may be
unusually large, the investment advisers may have difficulty processing the
transactions. In addition, execution of such transactions may possibly adversely
affect the Variable Accumulation Values of policy owners who are not utilizing
asset allocation or market timing services. Accordingly, NYLIAC reserves the
right to not accept transfer instructions which are submitted by any person,
asset allocation and/or market timing services on behalf of policy owners.

We will exercise this right only in accordance with uniform procedures that
we may establish from time to time and that will not unfairly discriminate
against similarly situated policyowners.

POLICY OWNER INQUIRIES

Your inquiries should be addressed to NYLIAC. (See page 16.)

CHARGES AND DEDUCTIONS

SURRENDER CHARGES

Since no deduction for a sales charge is made from premium payments, we
impose a surrender charge on certain partial withdrawals and surrenders of the
policies. The surrender charge covers certain expenses relating to the sale of
the policies, including commissions to registered representatives and other
promotional expenses. We measure the surrender charge as a percentage of the
amount withdrawn or surrendered. The surrender charge may apply to amounts
applied under certain Income Payment options.

If you surrender your policy, we deduct the surrender charge from the
amount paid to you. In the case of a partial withdrawal, you can direct NYLIAC
to take surrender charges either from the remaining value of the Allocation
Alternatives from which the partial withdrawals are made, or from the amount
paid to you. If the remaining value in an Allocation Alternative is less than
the necessary surrender charge, we will deduct the remainder of the charge from
the amount withdrawn from that Allocation Alternative.

The surrender charge is 7% of the amounts withdrawn or surrendered during
the first three Policy Years. The percentage of the charge declines 1% for each
additional Policy Year, until the ninth Policy Year, after which no surrender
charge is made, as shown in the following chart:

28
<PAGE> 29

AMOUNT OF SURRENDER CHARGE

<TABLE>
<CAPTION>
POLICY YEAR CHARGE
----------- ------
<S> <C>
1.......................................................... 7%
2.......................................................... 7%
3.......................................................... 7%
4.......................................................... 6%
5.......................................................... 5%
6.......................................................... 4%
7.......................................................... 3%
8.......................................................... 2%
9.......................................................... 1%
10+......................................................... 0
</TABLE>

The duration of the surrender charge schedule is based solely on the Policy
Date. Additional premium payments do not begin their own surrender charge
schedules.

EXCEPTIONS TO SURRENDER CHARGES

We will not assess a surrender charge:

(a) on amounts you withdraw in any one Policy Year which are less than or
equal to the greater of (i) 10% of the Accumulation Value at the time
of surrender or withdrawal, or (ii) a) for policies issued on or after
May 19, 2000, the Accumulation Value less accumulated premium payments,
b) for policies issued prior to May 19, 2000, the Accumulation Value
less accumulated premium payments for policies with total premium
payments of $100,000 or more;

(b) if NYLIAC cancels the policy;

(d) when you select an Income Payment Option in any Policy Year after the
first Policy Year;

(e) when a required minimum distribution is made under a Qualified policy
(this amount will, however, count against the first exception
described above);

(f) on withdrawals at age 59 1/2 or older if the policy is tax-qualified
and if the money withdrawn from the policy was transferred or rolled
over from a NYLIAC fixed deferred annuity policy;

(g) on withdrawals you make under the Living Needs Benefit Rider or
Unemployment Benefit Rider; and

(h) when the aggregate surrender charges under a policy exceed 8.5% of the
total premium payments.

In addition, we will not assess a surrender charge on certain withdrawals
from the Fixed Account. (See "The Fixed Account" at page 36.)

OTHER CHARGES

(a) Mortality and Expense Risk Charges

Prior to the Annuity Commencement Date, NYLIAC imposes risk charges to
compensate it for bearing certain mortality and expense risks under the
policies. This charge is equal, on an annual basis, to 1.20% of the average
daily net asset value of the applicable Separate Account and is deducted daily.
We guarantee that these charges will not increase. If these charges are
insufficient to cover actual costs and assumed risks, the loss will fall on
NYLIAC. If the charges are more than sufficient, we will add any excess to our
general funds. We may use these funds for any corporate purpose, including
expenses relating to the sale of the policies, to the extent that surrender
charges do not adequately cover sales expenses.

The mortality risk assumed is the risk that Annuitants as a group will live
for a longer time than our actuarial tables predict. As a result, we would be
paying more Income Payments than we planned. We also assume a risk that the
mortality assumptions reflected in our guaranteed annuity payment tables, shown
in each policy, will differ from actual mortality experience. Lastly, we assume
a mortality risk that, at the time of death, the guaranteed minimum death
benefit will exceed the policy's Accumulation Value. The expense risk

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<PAGE> 30

assumed is the risk that the cost of issuing and administering the policies will
exceed the amount we charge for these services.

(b) Administration Fee

Prior to the Annuity Commencement Date, we impose an administration fee
intended to cover the cost of providing policy administration services. This
charge is equal, on an annual basis, to .10% of the average daily net asset
value of the applicable Separate Account and is deducted daily.

We deduct an annual policy service charge each Policy Year on the Policy
Anniversary or upon surrender of the policy if on the Policy Anniversary or date
of surrender the Accumulation Value is less than $10,000. This charge is the
lesser of $30 or 2% of the Accumulation Value at the end of the Policy Year or
on the date of surrender, whichever is applicable. We deduct the annual policy
service charge from each Allocation Alternative in proportion to its percentage
of the Accumulation Value on the Policy Anniversary or date of surrender. This
charge is designed to cover the costs for providing services under the policy
such as collecting, processing and confirming premium payments and establishing
and maintaining the available methods of payment.

(d) Fund Charges

The value of the assets in the Separate Accounts will indirectly reflect
the Funds' total fees and expenses. The Funds' total fees and expenses are not
part of the policy. They may vary in amount from year to year. These fees and
expenses are described in detail in the relevant Fund's prospectus and/or
Statement of Additional Information.

GROUP AND SPONSORED ARRANGEMENTS

For certain group or sponsored arrangements, we may reduce the surrender
charge and the policy service charge or change the minimum initial and
additional premium payment requirements. Group arrangements include those in
which a trustee or an employer, for example, purchases policies covering a group
of individuals on a group basis. Sponsored arrangements include those in which
an employer allows us to sell policies to its employees or retirees on an
individual basis.

Our costs for sales, administration, and mortality generally vary with the
size and stability of the group among other factors. We take all these factors
into account when reducing charges. To qualify for reduced charges, a group or
sponsored arrangement must meet certain requirements, including our requirements
for size and number of years in existence. Group or sponsored arrangements that
have been set up solely to buy policies or that have been in existence less than
six months will not qualify for reduced charges.

We will make any reductions according to our rules in effect when an
application or enrollment form for a policy is approved. We may change these
rules from time to time. Any variation in the surrender charge or policy service
charge will reflect differences in costs or services and will not be unfairly
discriminatory.

TAXES

NYLIAC may, where premium taxes are imposed by state law, deduct such taxes
from your policy either (i) when a surrender or cancellation occurs, or (ii) at
the Annuity Commencement Date. Applicable premium tax rates depend upon such
factors as your current state of residency, and the insurance laws and NYLIAC's
status in states where premium taxes are incurred. Current premium tax rates
range from 0% to 3.5%. Applicable premium tax rates are subject to change by
legislation, administrative interpretations or judicial acts.

Under present laws, NYLIAC will also incur state and local taxes (in
addition to the premium taxes described above) in several states. At present,
these taxes are not significant. If they increase, however, NYLIAC may make
charges for such taxes.

NYLIAC does not expect to incur any federal income tax liability
attributable to investment income or capital gains retained as part of the
reserves under the Policies. (See "Federal Tax Matters" at page 37.) Based upon
these expectations, no charge is being made currently for corporate federal
income taxes which may be attributable to the Separate Accounts. Such a charge
may be made in future years for any federal income taxes NYLIAC incurs.

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<PAGE> 31

DISTRIBUTIONS UNDER THE POLICY

SURRENDERS AND WITHDRAWALS

You can make a partial withdrawal, periodic partial withdrawal, hardship
withdrawal or surrender the policy to receive part or all of the Accumulation
Value at any time before the Annuity Commencement Date and while the Annuitant
is living, by sending a written request to NYLIAC. The amount available for
withdrawal is the Accumulation Value on the Business Day during which we receive
the request, less any outstanding loan balance, surrender charges, premium taxes
which we may deduct and policy service charge, if applicable. If you have not
provided us with a written election not to withhold federal income taxes at the
time you make a withdrawal or surrender request, NYLIAC must by law withhold
such taxes from the taxable portion of any surrender or withdrawal. We will
remit that amount to the federal government. In addition, some states have
enacted legislation requiring withholding. We will pay all surrenders or
withdrawals within seven days of receipt of all documents (including documents
necessary to comply with federal and state tax law), subject to postponement in
certain circumstances. (See "Delay of Payments" at page 34.)

Since you assume the investment risk with respect to amounts allocated to
the Separate Accounts and because certain surrenders or withdrawals are subject
to a surrender charge and premium tax deduction, the total amount paid upon
surrender of the Policy (taking into account any prior withdrawals) may be more
or less than the total premium payments made.

Surrenders and withdrawals may be taxable transactions, and the Internal
Revenue Code provides that a 10% penalty tax may be imposed on certain early
surrenders or withdrawals. (See "Federal Tax Matters--Taxation of Annuities in
General" at page 37.)

(a) Surrenders

We may deduct a surrender charge and any state premium tax, if applicable,
less any outstanding loan balance, and less the annual policy service charge, if
applicable, from the amount paid. We will pay the proceeds in a lump sum to you
unless you elect a different Income Payment method. (See "Income Payments" at
page 33.) Surrenders may be taxable transactions and the 10% penalty tax
provisions may be applicable. (See "Federal Tax Matters--Taxation of Annuities
in General" at page 37.)

(b) Partial Withdrawals

The minimum amount that can be withdrawn is $500, unless we agree
otherwise. We will withdraw the amount from the Allocation Alternatives in
accordance with your request. If you do not specify how to allocate a partial
withdrawal among the Allocation Alternatives, we will allocate the partial
withdrawal on a pro-rata basis. Partial withdrawals may be taxable transactions
and the 10% penalty tax provisions may be applicable. (See "Federal Tax
Matters--Taxation of Annuities in General" at page 37.)

If the requested partial withdrawal is greater than the value in any of the
Allocation Alternatives from which the partial withdrawal is being made, we will
pay the entire value of that Allocation Alternative, less any surrender charge
that may apply, to you.

You may elect to receive regularly scheduled withdrawals from the policy.
These periodic partial withdrawals may be paid on a monthly, quarterly,
semi-annual, or annual basis. You will elect the frequency of the withdrawals,
and the day of the month for the withdrawals to be made (may not be the 29th,
30th, or 31st of a month). We will make all withdrawals on the day of each
calendar month you specify, or on the next Business Day (if the day you have
specified is not a Business Day). You must specify which Investment Divisions
and/or Fixed Account from which the periodic withdrawals will be made. The
minimum amount under this feature is $100, or such lower amount as we may
permit. Periodic partial withdrawals may be taxable transactions and the 10%
penalty tax provisions may be applicable. (See "Federal Tax Matters--Taxation of
Annuities in General" at page 37.) If you do not specify otherwise, we will
withdraw money on a pro rata basis from each Investment Division and/or the
Fixed Account.

You can elect to receive "Interest Only" periodic partial withdrawals for
the interest earned on monies allocated to the Fixed Account. If this option is
chosen, the $100 minimum for periodic partial withdrawals will be waived.
However, you must have at least $5,000 in the Fixed Account at the time of each
periodic partial withdrawal, unless we agree otherwise.

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<PAGE> 32

(d) Hardship Withdrawals

Under certain Qualified Policies, the Plan Administrator may allow, in its
sole discretion, certain withdrawals it determines to be "Hardship Withdrawals."
The surrender charge and 10% penalty tax, if applicable, and provisions
applicable to partial withdrawals apply to Hardship Withdrawals.

REQUIRED MINIMUM DISTRIBUTION OPTION

For IRAs and IRA SEPs, the policy owner is generally not required to elect
the required minimum distribution option until April 1st of the year following
the calendar year he or she attains age 70 1/2. For TSAs, the policy owner is
generally not required to elect the required minimum distribution option until
April 1st of the year following the calendar year he or she attains age 70 1/2
or until April 1st of the year following the calendar year he or she retires,
whichever occurs later.

OUR RIGHT TO CANCEL

If we do not receive any premium payments for a period of two years, and
both the Accumulation Value of your policy and your total premium payments less
any withdrawals and surrender charges are less than $2,000, we reserve the right
to terminate your policy subject to any applicable state insurance law or
regulation. We will notify you of our intention to exercise this right and give
you 90 days to make a premium payment. If we terminate your policy, we will pay
you the Accumulation Value of your policy in one lump sum.

ANNUITY COMMENCEMENT DATE

The Annuity Commencement Date is the date specified on the Policy Data
Page. The Annuity Commencement Date is the day that Income Payments are
scheduled to commence under the policy unless the policy has been surrendered or
an amount has been paid as proceeds to the designated Beneficiary prior to that
date. You may change the Annuity Commencement Date to an earlier date by
providing written notice to NYLIAC. You may defer the Annuity Commencement Date
to a later date if we agree to it, provided that we receive written notice of
the request at least one month before the last selected Annuity Commencement
Date. The Annuity Commencement Date and Income Payment method for Qualified
Policies may also be controlled by endorsements, the plan, or applicable law.

DEATH BEFORE ANNUITY COMMENCEMENT

If you or the Annuitant dies prior to the Annuity Commencement Date, we
will pay an amount as proceeds to the designated Beneficiary, as of the date we
receive proof of death and all requirements necessary to make the payment. That
amount will be the greater of:

(a) the Accumulation Value, less any outstanding loan balance; or

(b) the sum of all premium payments made less any outstanding loan balance,
partial withdrawals and surrender charges on those withdrawals.

We have set forth below an example of how the death benefit is calculated.
In this example, we have assumed the following:

(1) you purchase a policy with a $100,000 premium payment;

(2) the Accumulation Value is $110,000 in the second Policy Year;

(3) a $5,000 withdrawal is made in the second Policy Year;

(4) you die in the third Policy Year and the Accumulation Value of the
policy has decreased to $75,000.

<TABLE>
<S> <C> <C> <C>
The death benefit is the greater of:
(a) Accumulation Value; or = $75,000
(b) Premium payments less
any partial withdrawals = $95,000 ($100,000 - $5,000)
</TABLE>

In this example, your Beneficiary(ies) would receive $95,000.

The formula guarantees that the amount we pay will at least equal the sum
of all premium payments (less any outstanding loan balance, partial withdrawals
and surrender charges on such partial withdrawals), independent of the
investment experience of the applicable Separate Account. The Beneficiary may
receive the amount payable in a lump sum or under any life income payment option
which is then available. If more

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<PAGE> 33

than one Beneficiary is named, each Beneficiary will be paid a pro rata portion
from each Allocation Alternative in which the policy is invested as of the date
we receive proof of death and all requirements necessary to make the payment to
that Beneficiary. We will keep the remaining balance in the policy to pay the
other Beneficiaries. Due to market fluctuations the remaining Accumulation Value
may increase or decrease and we may pay subsequent Beneficiaries a different
amount.

We will make payments in a lump sum to the Beneficiary unless you have
elected or the Beneficiary elects otherwise in a signed written notice which
gives us the information that we need. If such an election is properly made, we
will apply all or part of these proceeds:

(i) under the Life Income Payment Option to provide an immediate annuity
for the Beneficiary who will be the policy owner and Annuitant; or

(ii) under another Income Payment option we may offer at the time.
Payments under the annuity or under any other method of payment we
make available must be for the life of the Beneficiary, or for a
number of years that is not more than the life expectancy of the
Beneficiary at the time of the policy owner's death (as determined
for federal tax purposes), and must begin within one year after the
Owner's death. (See "Income Payments" below.)

If your spouse is the Beneficiary, we can pay the proceeds to the surviving
spouse if you die before the Annuity Commencement Date or the policy can
continue with the surviving spouse as (a) the new policy owner, and, (b) if you
were the Annuitant, as the Annuitant. Generally, NYLIAC will not issue a policy
to joint owners. However, if NYLIAC makes an exception and issues a jointly
owned policy, ownership rights and privileges under the policy must be exercised
jointly and benefits under the policy will be paid upon the death of any joint
owner. (See "Federal Tax Matters--Taxation of Annuities in General" at page 37.)

If the Annuitant and, where applicable under another Income Payment option,
the Joint Annuitant, if any, die after the Annuity Commencement Date, NYLIAC
will pay the sum required by the Income Payment option in effect.

We will make any distribution or application of policy proceeds within 7
days after NYLIAC receives all documents (including documents necessary to
comply with federal and state tax law) in connection with the event or election
that causes the distribution to take place, subject to postponement in certain
circumstances. (See "Delay of Payments" at page 34.)

INCOME PAYMENTS

(a) Election of Income Payment Options

We will make Income Payments under the Life Income Payment Option or under
such other option we may offer at that time where permitted by state laws. We
will require that a lump sum payment be made if the Accumulation Value is less
than $2,000. At any time before the Annuity Commencement Date, you may change
the Income Payment option or request any other method of payment we agree to. If
the Life Income Payment Option is chosen, we may require proof of birth date
before Income Payments begin. For Income Payment options involving life income,
the actual age of the Annuitant will affect the amount of each payment. Since
payments based on older Annuitants are expected to be fewer in number, the
amount of each annuity payment should be greater. We will make payments under
the Life Income Payment Option in the same specified amount and over the life of
the Annuitant with a guarantee of 10 years of payments, even if the Annuitant
dies sooner. NYLIAC does not currently offer variable Income Payment options.

Under Income Payment options involving life income, the payee may not
receive Income Payments equal to the total premium payments if the Annuitant
dies before the actuarially predicted date of death. We base Income Payment
options involving life income are based on annuity tables that vary on the basis
of sex, unless the policy was issued under an employer sponsored plan or in a
state which requires unisex rates.

(b) Other Methods of Payment

If NYLIAC agrees, you (or the Beneficiary upon the death of you or the
Annuitant prior to the Annuity Commencement Date) may choose to have Income
Payments made under some other method of payment or in a lump sum.

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<PAGE> 34

We may require satisfactory proof of survival, from time to time, before we
pay any Income Payments or other benefits. We will request the proof at least 30
days prior to the next scheduled payment date.

DELAY OF PAYMENTS

We will pay any amounts due from the Separate Accounts under the policy
within seven days of the date NYLIAC receives all documents (including documents
necessary to comply with federal and state tax law) in connection with a request
unless:

1. The New York Stock Exchange ("NYSE") is closed for other than usual
weekends or holidays, or trading on the NYSE is otherwise
restricted;

2. An emergency exists as defined by the Securities and Exchange
Commission ("SEC");

3. The SEC permits a delay for the protection of security holders; or

4. The check used to pay the premium has not cleared through the
banking system. This may take up to 15 days.

For the same reasons we will delay transfers from the Separate Accounts to
the Fixed Account.

We may also delay payments of any amount due from the Fixed Account. When
permitted by law, we may defer payment of any partial or full surrender request
for up to six months from the date of surrender from the Fixed Account. We will
pay interest of at least 3.5% per year on any partial or full surrender request
deferred for 30 days or more.

DESIGNATION OF BENEFICIARY

You may select one or more Beneficiaries and name them in the application.
Thereafter, before the Annuity Commencement Date and while the Annuitant is
living, you may change the Beneficiary by written notice to NYLIAC. If before
the Annuity Commencement Date, the Annuitant dies before you and no Beneficiary
for the proceeds or for a stated share of the proceeds survives, the right to
the proceeds or shares of the proceeds passes to you. If you are the Annuitant,
the proceeds pass to your estate. However, if the policy owner who is not the
Annuitant dies before the Annuity Commencement Date, and no Beneficiary for the
proceeds or for a stated share of the proceeds survives, the right to the
proceeds or shares of the proceeds passes to the policy owner's estate.

RESTRICTIONS UNDER INTERNAL REVENUE CODE SECTION 403(b)(11)

Distributions attributable to salary reduction contributions made in years
beginning after December 31, 1988 (including the earnings on these
contributions), as well as to earnings in such years on salary reduction
accumulations held as of the end of the last year beginning before January 1,
1989, may not begin before the employee attains age 59 1/2, separates from
service, dies or becomes disabled. The plan may also provide for distribution in
the case of hardship. However, hardship distributions are limited to amounts
contributed by salary reduction. The earnings on such amounts may not be
withdrawn. Even though a distribution may be permitted under these rules (e.g.
for hardship or after separation from service), it may still be subject to a 10%
additional income tax as a premature distribution. To the extent that these
limitations on distributions conflict with the redeemability provisions of the
Investment Company Act of 1940, NYLIAC relies upon a November 28, 1988 no-action
letter for exemptive relief.

Under the terms of your plan you may have the option to invest in other
403(b) funding vehicles, including 403(b)(7) custodial accounts. You should
consult your plan document to make this determination.

LOANS

Loans are available only if you have purchased your policy in connection
with a 403(b) plan and may not be available in all states for plans subject to
the Employee Retirement Income Security Act of 1974 ("ERISA"). Under your 403(b)
policy, you may borrow against your policy's Accumulation Value after the first
Policy Year and prior to the Annuity Commencement Date. Unless we agree
otherwise, only one loan may be outstanding at a time. There must be a minimum
accumulation value of $5,000 in the contract at the time of the loan. The
minimum loan amount is $500. The maximum loan that you may take is the lesser
of: (a) 50% of the policy's Accumulation Value on the date of the loan or (b)
$50,000. We withdraw a loan processing fee of $25 from the Accumulation Value on
a pro rata basis, unless prohibited by applicable state law or regulation. If on
the date of the loan you do not have a Fixed Accumulation Value equal to at
least

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<PAGE> 35

125% (110% in New York) of the loan amount, we will transfer sufficient
Accumulation Value from the Investment Divisions on a pro rata basis so that the
Fixed Accumulation Value equals 125% (110% in New York) of the loan amount.
While a loan is outstanding, you may not make partial withdrawals or transfers
which would reduce the Fixed Accumulation Value to an amount less than 125%
(110% in New York) of the outstanding loan balance.

For plans not subject to ERISA, the interest rate paid by the policy owner
of the loan will equal 5%. We will credit the assets being held in the Fixed
Account to secure the loan with the minimum guaranteed interest rate of 3%. For
plans subject to ERISA, we will apply the interest charged on the loan at the
prime rate at the beginning of the calendar year, plus 1%. We will credit the
money being held in the Fixed Account to secure the loan with a rate of interest
that is the prime rate less 1%, but will always be at least equal to the minimum
guaranteed interest rate of 3%. For all plans, we will assess interest in
arrears as part of the periodic loan repayments.

You must repay the loan on a periodic basis at a frequency not less
frequently than quarterly and over a period not greater than five years from the
date it is taken. If a loan repayment is in default, we will withdraw the amount
in default from the Fixed Accumulation value to the extent permitted by federal
income tax rules. We will take such a repayment on a first-in, first-out (FIFO)
basis from amounts allocated to the Fixed Account.

We permit loans to acquire a principal residence under the same terms
described above, except that:

(a) the minimum loan amount is $5,000; and

(b) repayment of the loan amount may be extended to a maximum of
twenty-five years.

We deduct any outstanding loan balance including any accrued interest from
the Fixed Accumulation Value prior to payment of a surrender or the commencement
of the annuity benefits. On death of the policy owner or Annuitant, we deduct
any outstanding loan balance from the Fixed Accumulation Value as a partial
withdrawal as of the date we receive the notice of death.

Loans are subject to the terms of the policy, your 403(b) plan and the
Internal Revenue Code, which may impose restrictions upon them. We reserve the
right to suspend, modify, or terminate the availability of loans under this
policy at any time. However, any action taken by us will not affect already
outstanding loans.

RIDERS

At no additional charge, we include two riders under the policy: an
Unemployment Benefit Rider, for Non-Qualified, IRA and Roth IRA policies, and a
Living Needs Benefit Rider, for all types of policies. Both riders provide for
an increase in the amount that can be withdrawn from your policy which will not
be subject to the imposition of a surrender charge upon the happening of certain
qualifying events. The riders are only available in those states where they have
been approved.

(a) Living Needs Benefit Rider

If the Annuitant enters a nursing home, becomes terminally ill or disabled
you may be eligible to receive all or a portion of the Accumulation Value
without paying a surrender charge. The policy must have been inforce for at
least one year and have a minimum Accumulation Value of $5,000. You must also
provide us with proof that the Annuitant has spent 60 or more consecutive days
in a nursing home. Withdrawals will be taxable to the extent of gain and, prior
to age 59 1/2, may be subject to a 10% IRS penalty. This rider is in effect in
all states where approved.

(b) Unemployment Benefit Rider

For all Non-Qualified, IRA and Roth IRA policies, if you become unemployed,
you may be eligible to increase the amount that can be withdrawn from your
policy up to 50% without paying surrender charges. This rider can only be used
once. The policy must have been inforce for at least one year and have a minimum
Accumulation Value of $5,000. You also must have been unemployed for at least 60
consecutive days. Withdrawals may be taxable transactions and, prior to age
59 1/2, may be subject to a 10% IRS penalty. This rider is in effect in all
states where approved. To apply for this benefit, you must submit a
determination letter from the applicable state's Department of Labor indicating
that you qualify for and are receiving unemployment benefits.

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<PAGE> 36

THE FIXED ACCOUNT

The Fixed Account is supported by the assets in NYLIAC's general account,
which includes all of NYLIAC's assets except those assets specifically allocated
to NYLIAC's separate accounts. NYLIAC has sole discretion to invest the assets
of the Fixed Account subject to applicable law. The Fixed Account is not
registered under the federal securities laws and is not generally subject to
their provision. Furthermore, the staff of the Securities and Exchange
Commission has not reviewed the disclosures in this Prospectus relating to the
Fixed Account. These disclosures regarding the Fixed Account may be subject to
certain applicable provisions of the federal securities laws relating to the
accuracy and completeness of statements made in prospectuses.

(a) Interest Crediting

NYLIAC guarantees that it will credit interest at an effective rate of at
least 3% to amounts allocated or transferred to the Fixed Account under the
policies. We credit interest on a daily basis. NYLIAC may, at its sole
discretion, credit a higher rate or rates of interest to amounts allocated or
transferred to the Fixed Account. Interest rates will be set quarterly on the
first day of each new calendar quarter. All premium payments and additional
payments (including transfers from other Investment Divisions) allocated to the
Fixed Account during a calendar quarter will receive the interest rate declared
for that quarter until the end of that Policy Year. All other amounts in the
Fixed Account are credited with the rate set for the quarter in which the last
Policy Anniversary occurred, guaranteed for the current Policy Year.

(b) Bail-Out

Surrender Charges may be applied to withdrawals from the Fixed Account.
(See "Surrender Charges" at page 28.) For policies applied for prior to April 1,
1999, in addition to the "Exceptions to Surrender Charges" described at page 29,
subject to any applicable state insurance law or regulation, a surrender charge
will not be imposed on any amount which is withdrawn from the Fixed Account if
on any Policy Anniversary: (1) the interest rate set for that amount falls more
than 2.5 percentage points below the rate which was set for the immediately
preceding Policy Year, or below the minimum rate specified on your Policy Data
Page, and (2) within 60 days after that Policy Anniversary, you withdraw part or
all of that amount allocated to the Fixed Account. We reserve the right to set a
separate yearly interest rate and period for which this rate is guaranteed for
amounts transferred to the Fixed Account.

The exception described above does not apply to policies applied for on or
after April 1, 1999, in states where approved. You should check with your
registered representative to determine whether this provision is still available
in your state.

You may transfer amounts from the Fixed Account to the Investment Divisions
up to 30 days prior to the Annuity Commencement Date, subject to the following
conditions.

1. The maximum amount you are allowed to transfer from the Fixed
Account to the Investment Divisions during any Policy Year is 20% of the
Fixed Accumulation Value at the beginning of the Policy Year.

2. For applications signed prior to April 1, 1999, you may transfer an
amount from the Fixed Account to the Investment Divisions if on any Policy
Anniversary: (i) the interest rate set for that amount falls more than 2.5
percentage points below the rate which was set for the immediately
preceding Policy Year, or below the minimum rate specified on your Policy
Data Page, and (ii) within 60 days after that Policy Anniversary, you make
a request for such transfer. There is no minimum transfer requirement and
no charges will be imposed under this condition.

3. The minimum amount that you may transfer from the Fixed Account to
the Investment Divisions is the lesser of (i) $500 or (ii) the Fixed
Accumulation Value, unless we agree otherwise. Additionally, the remaining
values in the Fixed Account must be at least $500. If, after a contemplated
transfer, the remaining values in the Fixed Account would be less than
$500, that amount must be included in the transfer, unless NYLIAC in its
discretion determines otherwise. We determine amounts transferred from the
Fixed Account on a first-in, first-out ("FIFO") basis, for purposes of
determining the rate at which we credit interest on monies remaining in the
Fixed Account.

You must make transfer requests in writing on a form approved by NYLIAC or
by telephone in accordance with established procedures. (See "Procedures for
Telephone Transfers" at page 25).
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<PAGE> 37

We will deduct partial withdrawals and apply any surrender charges to the
Fixed Account in the following sequence: first, from any value in the Fixed
Account as of the last Policy Anniversary, then from any value in the Fixed
Account attributed to additional premium payments or transfers from Investment
Divisions in the same order in which you allocated such payments to the Fixed
Account during the current Policy Year.

See the policy itself for details and a description of the Fixed Account.

FEDERAL TAX MATTERS

INTRODUCTION

THE FOLLOWING DISCUSSION IS GENERAL AND IS NOT INTENDED AS TAX ADVICE. The
Qualified Policies are designed for use by individuals in retirement plans which
are intended to qualify as plans qualified for special income tax treatment
under Sections 219, 403, 408, 408A or 457 of the Code. The ultimate effect of
federal income taxes on the Accumulation Value, on Income Payments and on the
economic benefit to you, the Annuitant or the Beneficiary depends on the type of
retirement plan for which the Qualified Policy is purchased, on the tax and
employment status of the individual concerned and on NYLIAC's tax status. The
following discussion assumes that Qualified Policies are used in retirement
plans that qualify for the special federal income tax treatment described above.
This discussion is not intended to address the tax consequences resulting from
all of the situations in which a person may be entitled to or may receive a
distribution under a policy. Any person concerned about these tax implications
should consult a competent tax adviser before making a premium payment. This
discussion is based upon NYLIAC's understanding of the present federal income
tax laws as they are currently interpreted by the Internal Revenue Service. We
cannot predict the likelihood of continuation of the present federal income tax
laws or of the current interpretations by the Internal Revenue Service, which
may change from time to time without notice. Any such change could have
retroactive effects regardless of the date of enactment. Moreover, this
discussion does not take into consideration any applicable state or other tax
laws except with respect to the imposition of any state premium taxes. We
suggest you consult with your tax adviser.

TAXATION OF ANNUITIES IN GENERAL

The following discussion assumes that the policies will qualify as annuity
contracts for federal income tax purposes. The Statement of Additional
Information discusses such qualifications.

Section 72 of the Code governs taxation of annuities in general. NYLIAC
believes that an annuity policy owner generally is not taxed on increases in the
value of a policy until distribution occurs either in the form of a lump sum
received by withdrawing all or part of the Accumulation Value (i.e., surrenders
or partial withdrawals) or as Income Payments under the Income Payment option
elected. The exception to this rule is that generally, a policy owner of any
deferred annuity policy who is not a natural person must include in income any
increase in the excess of the policy owner's Accumulation Value over the policy
owner's investment in the contract during the taxable year. However, there are
some exceptions to this exception. You may wish to discuss these with your tax
counsel. The taxable portion of a distribution (in the form of an annuity or
lump sum payment) is generally taxed as ordinary income. For this purpose, the
assignment, pledge, or agreement to assign or pledge any portion of the
Accumulation Value generally will be treated as a distribution.

In the case of a withdrawal or surrender distributed to a participant or
Beneficiary under a Qualified Policy (other than a Qualified Policy used in a
retirement plan that qualifies for special federal income tax treatment under
Section 457 of the Code as to which there are special rules), a ratable portion
of the amount received is taxable, generally based on the ratio of the
investment in the contract to the total policy value. The "investment in the
contract" generally equals the portion, if any, of any premium payments paid by
or on behalf of an individual under a policy which is not excluded from the
individual's gross income. For policies issued in connection with qualified
plans, the "investment in the contract" can be zero. The law requires the use of
special simplified methods to determine the taxable amount of payments that are
based in whole or in part on the Annuitant's life and that are paid from
qualified retirement plans under Section 401(a) and from qualified annuities and
Tax Sheltered Annuities under Sections 403(a) and 403(b).

Generally, in the case of a withdrawal under a Non-Qualified Policy before
the Annuity Commencement Date, amounts received are first treated as taxable
income to the extent that the Accumulation Value immediately before the
withdrawal exceeds the "investment in the contract" at that time. Any additional
amount withdrawn is not taxable.

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Although the tax consequences may vary depending on the Income Payment
option elected under the policy, in general, only the portion of the Income
Payment that represents the amount by which the Accumulation Value exceeds the
"investment in the contract" will be taxed. After the investment in the Policy
is recovered, the full amount of any additional Income Payments is taxable. For
fixed Income Payments, in general, there is no tax on the portion of each
payment which represents the same ratio that the "investment in the contract"
bears to the total expected value of the Income Payments for the term of the
payments. However, the remainder of each Income Payment is taxable until the
recovery of the investment in the contract, and thereafter the full amount of
each annuity payment is taxable. If death occurs before full recovery of the
investment in the contract, the unrecovered amount may be deducted on the
annuitant's final tax return.

In the case of a distribution, a penalty tax equal to 10% of the amount
treated as taxable income may be imposed. The penalty tax is not imposed in
certain circumstances, including, generally, distributions: (1) made on or after
the date on which the taxpayer is actual age 59 1/2, (2) made as a result of the
policy owner's or Annuitant's death or disability, or (3) received in
substantially equal installments paid at least annually as a life annuity. Other
tax penalties may apply to certain distributions pursuant to a Qualified Policy.

All non-qualified, deferred annuity contracts issued by NYLIAC (or its
affiliates) to the same policy owner during any calendar year are to be treated
as one annuity contract for purposes of determining the amount includible in an
individual's gross income. In addition, there may be other situations in which
the Treasury Department may conclude (under its authority to issue regulations)
that it would be appropriate to aggregate two or more annuity contracts
purchased by the same policy owner. Accordingly, a policy owner should consult a
competent tax adviser before purchasing more than one policy or other annuity
contract.

A transfer of ownership of a policy, or designation of an Annuitant or
other Beneficiary who is not also the policy owner, may result in certain income
or gift tax consequences to the policy owner. A policy owner contemplating any
transfer or assignment of a policy should contact a competent tax adviser with
respect to the potential tax effects of such a transaction.

QUALIFIED PLANS

The Qualified Policy is designed for use with several types of qualified
plans. The tax rules applicable to participants and beneficiaries in such
qualified plans vary according to the type of plan and the terms and conditions
of the plan itself. Special favorable tax treatment may be available for certain
types of contributions and distributions (including special rules for certain
lump sum distributions to individuals who attained the age of 50 by January 1,
1986). Adverse tax consequences may result from contributions in excess of
specified limits, distributions prior to age 59 1/2 (subject to certain
exceptions), distributions that do not conform to specified minimum distribution
rules and in certain other circumstances. Therefore, this discussion only
provides general information about use of the policies with the various types of
qualified plans. Policy owners and participants under qualified plans as well as
Annuitants and Beneficiaries are cautioned that the rights of any person to any
benefits under qualified plans may be subject to the terms and conditions of the
plans themselves, regardless of the terms and conditions of the policy issued in
connection with the plan. Purchasers of policies for use with any qualified plan
should seek competent legal and tax advice regarding the suitability of the
policy.

(a) Section 403(b) Plans. Under Section 403(b) of the Code, payments
made by public school systems and certain tax exempt organizations to
purchase annuity policies for their employees are excludible from the gross
income of the employee, subject to certain limitations. However, such
payments may be subject to FICA (Social Security) taxes.

(b) Individual Retirement Annuities. Sections 219 and 408 of the Code
permit individuals or their employers to contribute to an individual
retirement program known as an "Individual Retirement Annuity" or "IRA",
including an employer-sponsored Simplified Employee Pension or "SEP".
Individual Retirement Annuities are subject to limitations on the amount
which may be contributed and deducted and the time when distributions may
commence. In addition, distributions from certain other types of qualified
plans may be placed into Individual Retirement Annuities on a tax-deferred
basis.

(c) Roth Individual Retirement Annuities. Section 408A of the Code
permits individuals with incomes below a certain level to contribute to an
individual retirement program known as a "Roth Individual Retirement
Annuity" or "Roth IRA." Roth IRAs are subject to limitations on the amount
that may be contributed. Contributions to Roth IRAs are not deductible, but
distributions from Roth IRAs that meet

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certain requirements are not included in gross income. Certain individuals
are eligible to convert their existing non-Roth IRAs into Roth IRAs. They
will be subject to income tax at the time of conversion.

(d) Deferred Compensation Plans. Section 457 of the Code, while not
actually providing for a qualified plan as that term is normally used,
provides for certain deferred compensation plans with respect to service
for state governments, local governments, political subdivisions, agencies,
instrumentalities and certain affiliates of such entities and tax exempt
organizations which enjoy special treatment. The policies can be used with
such plans. Under such plans, a participant may specify the form of
investment in which his or her participation will be made. Such investments
are generally owned by, and are subject to, the claims of the general
creditors of the sponsoring employer, except that Section 457 plans of
state and local government must be held and used for the exclusive benefit
of participants and beneficiaries in a trust or annuity contract.

DISTRIBUTOR OF THE POLICIES

NYLIFE Distributors Inc. ("NYLIFE Distributors"), 51 Madison Avenue, New
York, New York 10010, is the principal underwriter and the distributor of the
policies. It is an indirect wholly-owned subsidiary of New York Life. The
maximum commission typically paid to broker-dealers who have entered into dealer
agreements with NYLIFE Distributors is 6.5%. A portion of this amount will be
paid as commissions to registered representatives.

VOTING RIGHTS

The Funds are not required to and typically do not hold routine annual
stockholder meetings. Special stockholder meetings will be called when
necessary. To the extent required by law, NYLIAC will vote the Eligible
Portfolio shares held in the Investment Divisions at special stockholder
meetings of the Funds in accordance with instructions we receive from persons
having voting interests in the corresponding Investment Division. If, however,
the federal securities laws are amended, or if NYLIAC's present interpretation
should change, and as a result, NYLIAC determines that it is allowed to vote the
Eligible Portfolio shares in its own right, we may elect to do so.

Prior to the Annuity Commencement Date, you hold a voting interest in each
Investment Division to which you have money allocated. We will determine the
number of votes which are available to you by dividing the Accumulation Value
attributable to an Investment Division by the net asset value per share of the
applicable Eligible Portfolios. We will calculate the number of votes which are
available to you separately for each Investment Division. We will determine that
number by applying your percentage interest, if any, in a particular Investment
Division to the total number of votes attributable to the Investment Division.

We will determine the number of votes of the Eligible Portfolio which are
available as of the date established by the Portfolio of the relevant Fund.
Voting instructions will be solicited by written communication prior to such
meeting in accordance with procedures established by the relevant Fund.

If we do not receive timely instructions, we will vote those shares in
proportion to the voting instructions which are received with respect to all
policies participating in that Investment Division. We will apply voting
instructions to abstain on any item to be voted upon on a pro rata basis to
reduce the votes eligible to be cast. Each person having a voting interest in an
Investment Division will receive proxy material, reports and other materials
relating to the appropriate Eligible Portfolio.

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TABLE OF CONTENTS FOR THE
STATEMENT OF ADDITIONAL INFORMATION

The SAI contains more details concerning the subjects discussed in this
Prospectus. The following is the Table of Contents for the SAI:

<TABLE>
<CAPTION>
PAGE
----
<S> <C>
THE POLICIES................................................ 2
INVESTMENT PERFORMANCE CALCULATIONS......................... 2
ANNUITY PAYMENTS............................................ 4
GENERAL MATTERS............................................. 4
FEDERAL TAX MATTERS......................................... 4
DISTRIBUTOR OF THE POLICIES................................. 6
SAFEKEEPING OF SEPARATE ACCOUNT ASSETS...................... 6
STATE REGULATION............................................ 6
RECORDS AND REPORTS......................................... 6
LEGAL PROCEEDINGS........................................... 6
EXPERTS..................................................... 7
OTHER INFORMATION........................................... 7
FINANCIAL STATEMENTS........................................ F-1
</TABLE>

How to obtain a New York Life LifeStages(R) Flexible Premium Variable Annuity
Statement of Additional Information.

Call (800) 598-2019 or send this request form to:

NYLIAC Variable Products Service Center
Madison Square Station
P.O. Box 922
New York, NY 10159

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Please send me a New York Life LifeStages(R) Flexible Premium Variable Annuity
Statement of
Additional Information dated May 1, 2000:

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Name

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Address

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City State Zip