<PAGE> 1
TRAVELERS VINTAGE ANNUITY PROSPECTUS:
THE TRAVELERS FUND BD FOR VARIABLE ANNUITIES
THE TRAVELERS FUND BD II FOR VARIABLE ANNUITIES
This prospectus describes TRAVELERS VINTAGE ANNUITY, a flexible premium variable
annuity contract (the "Contract") issued by The Travelers Insurance Company or
The Travelers Life and Annuity Company, depending on the state in which you
purchased your Contract. The Contract is available in connection with certain
retirement plans that qualify for special federal income tax treatment
("qualified Contracts") as well as those that do not qualify for such treatment
("nonqualified Contracts"). We may issue it as an individual Contract or as a
group Contract. In states where only group Contracts are available, you will be
issued a certificate summarizing the provisions of the group Contract. For
convenience, we refer to Contracts and certificates as "Contracts."
You can choose to have your premium ("purchase payments") accumulate on a fixed
basis and/ or a variable basis. Your contract value will vary daily to reflect
the investment experience of the subaccounts ("funding options") you select and
any interest credited to the Fixed Account. The variable funding options are:
DREYFUS VARIABLE INVESTMENT FUND
Small Cap Portfolio
GREENWICH STREET SERIES FUND
Equity Index Portfolio -- Class II Shares
Total Return Portfolio
SALOMON BROTHERS VARIABLE SERIES FUND INC.
Investors Fund
Total Return Fund
SMITH BARNEY CONCERT ALLOCATION SERIES INC.
Select Balanced Portfolio
Select Growth Portfolio
TRAVELERS SERIES FUND INC.
AIM Capital Appreciation Portfolio
Alliance Growth Portfolio
INVESCO Strategic Income Portfolio(1)
MFS Total Return Portfolio
Putnam Diversified Income Portfolio
Smith Barney High Income Portfolio
Smith Barney International Equity Portfolio
Smith Barney Large Cap Value Portfolio
Smith Barney Large Capitalization Growth
Portfolio
Smith Barney Money Market Portfolio
Smith Barney Pacific Basin Portfolio
Travelers Managed Income Portfolio
Van Kampen Enterprise Portfolio
THE TRAVELERS SERIES TRUST
Convertible Bond Portfolio
Disciplined Mid Cap Stock Portfolio
Disciplined Small Cap Stock Portfolio
MFS Emerging Growth Portfolio
MFS Research Portfolio
Strategic Stock Portfolio
- ---------------
(1)formerly GT Global Strategic Income Portfolio
The Fixed Account is described in Appendix C. Unless specified otherwise, this
prospectus refers to the variable funding options. The contracts and/or some of
the funding options may not be available in all states. THIS PROSPECTUS IS VALID
ONLY WHEN ACCOMPANIED BY THE CURRENT PROSPECTUSES FOR THE VARIABLE FUNDING
OPTIONS. READ AND RETAIN THEM FOR FUTURE REFERENCE.
This prospectus provides the information that you should know before investing
in the Contract. You can receive additional information about the Travelers Fund
BD for Variable Annuities or the Travelers Fund BD II for Variable Annuities
("Separate Account") by requesting 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. To request a copy, write to The Travelers Insurance Company,
Annuity Investor Services, One Tower Square, Hartford, Connecticut 06183, call
1-800-842-8573 or access the SEC's website (http://www.sec.gov). See Appendix D
for the SAI's table of contents.
NEITHER THE SECURITIES AND EXCHANGE COMMISSION NOR ANY STATE SECURITIES
COMMISSION HAS PASSED UPON THE ADEQUACY OF THIS PROSPECTUS. ANY REPRESENTATION
TO THE CONTRARY IS A CRIMINAL OFFENSE.
VARIABLE ANNUITY CONTRACTS ARE NOT DEPOSITS OF ANY BANK, AND ARE NOT INSURED OR
GUARANTEED BY THE FEDERAL DEPOSIT INSURANCE CORPORATION OR ANY OTHER GOVERNMENT
AGENCY.
PROSPECTUS DATED MAY 1, 2000
<PAGE> 2
TABLE OF CONTENTS
<TABLE>
<S> <C>
Index of Special Terms................ 2
Summary............................... 3
Fee Table............................. 6
Condensed Financial Information....... 10
The Annuity Contract.................. 10
Contract Owner Inquiries......... 10
Purchase Payments................ 10
Accumulation Units............... 10
The Funding Options.............. 11
Charges and Deductions................ 13
General.......................... 13
Withdrawal Charge................ 14
Free Withdrawal Allowance........ 14
Administrative Charges........... 15
Mortality and Expense Risk
Charge......................... 15
Funding Option Expenses.......... 15
Premium Tax...................... 15
Changes in Taxes Based Upon
Premium or Value............... 15
Transfers............................. 16
Dollar Cost Averaging............ 16
Access to Your Money.................. 17
Systematic Withdrawals........... 17
Loans............................ 17
Ownership Provisions.................. 18
Types of Ownership............... 18
Beneficiary...................... 18
Annuitant........................ 18
Death Benefit......................... 18
Death Proceeds Before the
Maturity Date.................. 19
Payment of Proceeds.............. 21
Death Proceeds After the Maturity
Date........................... 23
The Annuity Period.................... 23
Maturity Date.................... 23
Allocation of Annuity............ 24
Variable Annuity................. 24
Fixed Annuity.................... 25
Payment Options....................... 25
Election of Options.............. 25
Annuity Options.................. 25
Income Options................... 26
Miscellaneous Contract Provisions..... 26
Right to Return.................. 26
Termination...................... 26
Required Reports................. 27
Suspension of Payments........... 27
Transfers of Contract Values to
Other Annuities................ 27
The Separate Accounts................. 27
Performance Information.......... 27
Federal Tax Considerations............ 28
General Taxation of Annuities.... 28
Types of Contracts: Qualified or
Nonqualified................... 29
Nonqualified Annuity Contracts... 29
Qualified Annuity Contracts...... 29
Penalty Tax for Premature
Distributions.................. 30
Diversification Requirements for
Variable Annuities............. 30
Ownership of the Investments..... 30
Mandatory Distributions for
Qualified Plans................ 30
Taxation of Death Benefit
Proceeds....................... 30
Other Information..................... 31
The Insurance Companies.......... 31
Financial Statements............. 31
IMSA............................. 31
Distribution of Variable Annuity
Contracts...................... 31
Conformity with State and Federal
Laws........................... 32
Voting Rights.................... 32
Legal Proceedings and Opinions... 32
Appendix A: Condensed Financial
Information for The Travelers
Insurance Company: Separate Account
BD.................................. A-1
Appendix B: Condensed Financial
Information for The Travelers Life
and Annuity Company: Separate
Account BD II....................... B-1
Appendix C: The Fixed Account......... C-1
Appendix D: Contents of the Statement
of Additional Information........... D-1
</TABLE>
INDEX OF SPECIAL TERMS
The following terms are italicized throughout the prospectus. Refer to the page
listed for an explanation of each term.
<TABLE>
<S> <C>
Accumulation Period................... 10
Accumulation Unit..................... 10
Annuitant............................. 18
Annuity Payments...................... 10
Annuity Unit.......................... 10
Cash Surrender Value.................. 17
Contingent Annuitant.................. 18
Contract Date......................... 10
Contract Owner (You, Your)............ 18
Contract Value........................ 10
Contract Year......................... 10
Death Report Date..................... 19
Fixed Account......................... C-1
Funding Option(s)..................... 11
Maturity Date......................... 10
Purchase Payment...................... 10
Underlying Fund....................... 11
Written Request....................... 10
</TABLE>
2
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SUMMARY:
TRAVELERS VINTAGE VARIABLE ANNUITY
THIS SUMMARY DETAILS SOME OF THE MORE IMPORTANT POINTS THAT YOU SHOULD KNOW AND
CONSIDER BEFORE PURCHASING THE CONTRACT. PLEASE READ THE ENTIRE PROSPECTUS
CAREFULLY.
WHAT COMPANY WILL ISSUE MY CONTRACT? Your issuing company is either The
Travelers Insurance Company or The Travelers Life and Annuity Company, ("the
Company," "We" or "Us") depending on where you purchased your Contract. Each
company sponsors its own separate account, both of which are described later in
this prospectus. The Travelers Insurance Company sponsors the Travelers Fund BD
for Variable Annuities ("Fund BD"); The Travelers Life and Annuity Company
sponsors the Travelers Fund BD II for Variable Annuities ("Fund BD II"). When we
refer to the Separate Account, we are referring to either Fund BD or Fund BD II,
depending upon your issuing company.
Your issuing company is The Travelers Life and Annuity Company unless you
purchased your contract in the following locations listed below, which contracts
are issued by The Travelers Insurance Company.()
<TABLE>
<S> <C> <C> <C>
Bahamas North Carolina Oregon(1) U.S. Virgin Islands
British Virgin Islands New Hampshire Puerto Rico Washington(1)
Guam New Jersey Tennessee Wyoming
Maine New York
</TABLE>
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(1) The Travelers Insurance Company issues only single premium contracts with
variable and fixed accounts for these states. The Travelers Life and Annuity
Company issues only flexible premium contracts with variable with accounts
in these states. Please refer to your Contract or ask your agent for more
information.
You may also refer to the cover page of your Contract for the name of your
issuing company. You may only purchase a Contract where the Contract has been
approved. Not all locations have approved all Contracts.
CAN YOU GIVE ME A GENERAL DESCRIPTION OF THE VARIABLE ANNUITY CONTRACT? The
Contract offered by the Company is intended for retirement savings or other
long-term investment purposes. The Contract provides a death benefit as well as
guaranteed payout options. You direct your payment(s) to one or more of the
variable funding options and/or to the Fixed Account. We guarantee money
directed to the Fixed Account as to principal and interest. The variable funding
options are designed to produce a higher rate of return than the Fixed Account;
however, this is not guaranteed. You can also lose money in the variable funding
options.
The Contract, like all deferred variable annuity contracts, has two phases: the
accumulation phase and the payout phase. During the accumulation phase
generally, under a qualified contract, your pre-tax contributions accumulate on
a tax-deferred basis and are taxed as income when you make a withdrawal,
presumably when you are in a lower tax bracket. During the accumulation phase,
under a nonqualified contract, earnings on your after-tax contributions
accumulate on a tax-deferred basis and are taxed as income when you make a
withdrawal. The payout phase occurs when you begin receiving payments from your
Contract. The amount of money you accumulate in your Contract determines the
amount of income (annuity payments) you receive during the payout phase.
During the payout phase, you may choose to receive annuity payments from the
Fixed Account or the variable funding options. If you want to receive payments
from your annuity, you can choose one of a number of annuity options or income
options.
Once you choose one of the annuity options or income options and begin to
receive payments, it cannot be changed. During the payout phase, you have the
same investment choices you had during the accumulation phase. If amounts are
directed to the variable funding options, the dollar amount of your payments may
increase or decrease.
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WHO SHOULD PURCHASE THIS CONTRACT? The Contract is currently available for use
in connection with (1) individual nonqualified purchases; (2) Individual
Retirement Annuities (IRAs); and (3) other qualified retirement plans. Qualified
contracts include contracts qualifying under Section 401(a), 403(b), or 408(b)
of the Internal Revenue Code of 1986, as amended. Purchase of this Contract
through a tax qualified retirement plan ("Plan") does not provide any additional
tax deferral benefits beyond those provided by the Plan. Accordingly, if you are
purchasing this Contract through a Plan, you should consider purchasing this
Contract for its Death Benefit, Annuity Option Benefits, and other
non-tax-related benefits.
You may purchase the Contract with an initial payment of at least $5,000. You
may make additional payments of at least $500 at any time during the
accumulation phase.
IS THERE A RIGHT TO RETURN PERIOD? If you cancel the Contract within twenty
days after you receive it, you will receive a full refund of the contract value
(including charges). Where state law requires a longer right to return period,
or the return of purchase payments, the Company will comply. You bear the
investment risk on the purchase payment during the right to return period;
therefore, the Contract value returned may be greater or less than your purchase
payment.
If the Contract is purchased as an Individual Retirement Annuity, and is
returned within the first seven days after delivery, your full purchase payment
will be refunded. During the remainder of the right to return period, the
Contract value (including charges) will be refunded. The Contract value will be
determined at the close of business on the day we receive a written request for
a refund.
WHAT TYPES OF INVESTMENT OPTIONS ARE AVAILABLE? You can direct your money into
the Fixed Account or any or all of the funding options shown on the cover page.
The funding options are described in the prospectuses for the funds. Depending
on market conditions, you may make or lose money in any of these options.
The value of the Contract will vary depending upon the investment performance of
the funding options you choose. Past performance is not a guarantee of future
results. Standard and Nonstandard performance is shown in the Statement of
Additional Information that you may request free of charge.
You can transfer between the funding options as frequently as you wish without
any current tax implications. Currently there is no charge for transfers, nor a
limit to the number of transfers allowed. We may, in the future, charge a fee
for any transfer request, or limit the number of transfers allowed. At a
minimum, we would always allow one transfer every six months. We reserve the
right to restrict transfers that we determine will disadvantage other contract
owners. You may transfer between the Fixed Account and the funding options twice
a year (during the 30 days after the six-month contract date anniversary),
provided the amount is not greater than 15% of the Fixed Account Value on that
date.
WHAT EXPENSES WILL BE ASSESSED UNDER THE CONTRACT? The Contract has insurance
features and investment features, and there are costs related to each. For
contracts with a value of less than $40,000 the Company deducts an annual
contract administrative charge of $30. The subaccount administrative charge and
the mortality and expense risk ("M&E") charge are deducted from the amounts in
the variable funding options. The subaccount administrative charge is 0.15%
annually. The annual M&E charge depends on the death benefit you choose: 1.02%
for the Standard Death Benefit, 1.30% for the Enhanced Death Benefit. Each
underlying Fund also charges for management and other expenses.
A withdrawal charge will apply to withdrawals from the Contract, and is
calculated as a percentage of the purchase payments. The maximum percentage is
6%, decreasing to 0% in years seven and later.
HOW WILL MY CONTRIBUTIONS AND WITHDRAWALS BE TAXED? Generally, the payments you
make to a qualified Contract during the accumulation phase are made with
before-tax dollars. You will be
4
<PAGE> 5
taxed on your purchase payments, credits and on any earnings when you make a
withdrawal or begin receiving annuity or income payments. Under a nonqualified
Contract, payments to the contract are made with after-tax dollars, and any
credits and earnings will accumulate tax-deferred. You will be taxed on these
earnings when they are withdrawn from the Contract.
For owners of qualified Contracts, if you reach a certain age, you may be
required by federal tax laws to begin receiving payments from your annuity or
risk paying a penalty tax. In those cases, we can calculate and pay you the
minimum required distribution amounts. If you are younger than 59 1/2 when you
take money out, you may be charged a 10% federal penalty tax on the amount
withdrawn.
HOW MAY I ACCESS MY MONEY? You can take withdrawals any time during the
accumulation phase. Withdrawal charges, income taxes, and/or a penalty tax may
apply to taxable amounts withdrawn.
WHAT IS THE DEATH BENEFIT UNDER THE CONTRACT? You may choose to purchase the
Standard or Enhanced Death Benefit. The death benefit applies upon the first
death of the owner, joint owner, or annuitant. Assuming you are the Annuitant,
the death benefit is as follows: If you die before the Contract is in the payout
phase, the person you have chosen as your beneficiary will receive a death
benefit. The death benefit value is calculated at the close of the business day
on which the Company's Home Office receives due proof of death and written
payment instructions. The enhanced death benefit may not be available in all
states. Please refer to the Death Benefit section in the prospectus for more
details.
ARE THERE ANY ADDITIONAL FEATURES? This Contract has other features you may be
interested in. These include:
-- DOLLAR COST AVERAGING. This is a program that allows you to invest a
fixed amount of money in funding options each month, theoretically
giving you a lower average cost per unit over time than a single
one-time purchase. Dollar Cost Averaging requires regular investments
regardless of fluctuating price levels, and does not guarantee profits
or prevent losses in a declining market. Potential investors should
consider their financial ability to continue purchases through periods
of low price levels.
-- SYSTEMATIC WITHDRAWAL OPTION. Before the maturity date, you can
arrange to have money sent to you at set intervals throughout the
year. Of course, any applicable income and penalty taxes will apply on
amounts withdrawn.
-- AUTOMATIC REBALANCING. You may elect to have the Company periodically
reallocate the values in your Contract to match your original (or your
latest) funding option allocation request.
5
<PAGE> 6
FEE TABLE
- --------------------------------------------------------------------------------
CONTRACT OWNER TRANSACTION EXPENSES
<TABLE>
<S> <C>
WITHDRAWAL CHARGE (as a percentage of the purchase
payments withdrawn):
</TABLE>
<TABLE>
<CAPTION>
YEARS SINCE PURCHASE WITHDRAWAL
PAYMENT MADE CHARGE
<S> <C>
0-1 6%
2 6%
3 6%
4 3%
5 2%
6 1%
7+ 0%
</TABLE>
<TABLE>
<S> <C>
ANNUAL CONTRACT ADMINISTRATIVE CHARGE $30
(Waived if contract value is $40,000 or more)
</TABLE>
<TABLE>
<S> <C> <C>
ANNUAL SEPARATE ACCOUNT CHARGES:
(as a percentage of the average daily net assets of the
Separate Account)
</TABLE>
<TABLE>
<CAPTION>
STANDARD ENHANCED
DEATH BENEFIT DEATH BENEFIT
- ---------------------------------------------------------------------------------------------
<S> <C> <C>
Mortality & Expense Risk Charge...................... 1.02% 1.30%
Administrative Expense Charge........................ 0.15% 0.15%
----- -----
Total Separate Account Charges..................... 1.17% 1.45%
FUNDING OPTION EXPENSES:
(as a percentage of average daily net assets of the Funding Option as of December 31, 1999,
unless otherwise noted)
</TABLE>
<TABLE>
<CAPTION>
TOTAL ANNUAL
OPERATING
MANAGEMENT FEE OTHER EXPENSES EXPENSES
(AFTER EXPENSE (AFTER EXPENSE (AFTER EXPENSE
FUNDING OPTIONS: REIMBURSEMENT) 12B-1 FEES REIMBURSEMENT) REIMBURSEMENT)
- ------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
DREYFUS VARIABLE INVESTMENT FUND
Small Cap Portfolio...................... 0.75% 0.03% 0.78%
GREENWICH STREET SERIES FUND
Equity Index Portfolio -- Class II Shares 0.21% 0.25% 0.05% 0.51%(1)
Total Return Portfolio................... 0.75% 0.04% 0.79%(2)
SALOMON BROTHERS VARIABLE SERIES FUND INC.
Investors Fund........................... 0.53% 0.45% 0.98%(3)
Total Return Fund........................ 0.15% 0.85% 1.00%(3)
SMITH BARNEY CONCERT ALLOCATION SERIES INC.
Select Balanced Portfolio................ 0.35% 0.76% 1.11%(4)
Select Conservative Portfolio**.......... 0.35% 0.72% 1.07%(4)
Select Growth Portfolio.................. 0.35% 0.88% 1.23%(4)
Select High Growth Portfolio**........... 0.35% 0.89% 1.24%(4)
Select Income Portfolio**................ 0.35% 0.67% 1.02%(4)
TRAVELERS SERIES FUND INC.
AIM Capital Appreciation Portfolio....... 0.80% 0.04% 0.84%(5)
Alliance Growth Portfolio................ 0.80% 0.02% 0.82%(5)
INVESCO Strategic Income Portfolio....... 0.80% 0.33% 1.13%(5)
MFS Total Return Portfolio............... 0.80% 0.04% 0.84%(5)
Putnam Diversified Income Portfolio...... 0.75% 0.08% 0.83%(5)
Smith Barney High Income Portfolio....... 0.60% 0.06% 0.66%(5)
Smith Barney International Equity
Portfolio.............................. 0.90% 0.10% 1.00%(5)
Smith Barney Large Capitalization Growth
Portfolio.............................. 0.75% 0.11% 0.86%(5)
Smith Barney Large Cap Value Portfolio... 0.65% 0.02% 0.67%(5)
Smith Barney Money Market Portfolio...... 0.50% 0.04% 0.54%(5)
Smith Barney Pacific Basin Portfolio..... 0.90% 0.40% 1.30%(5)
Travelers Managed Income Portfolio....... 0.65% 0.11% 0.76%(5)
Van Kampen Enterprise Portfolio.......... 0.70% 0.03% 0.73%(5)
</TABLE>
6
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<TABLE>
<CAPTION>
TOTAL ANNUAL
OPERATING
MANAGEMENT FEE OTHER EXPENSES EXPENSES
(AFTER EXPENSE (AFTER EXPENSE (AFTER EXPENSE
FUNDING OPTIONS: REIMBURSEMENT) 12B-1 FEES REIMBURSEMENT) REIMBURSEMENT)
- ------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
THE TRAVELERS SERIES TRUST
Convertible Bond Portfolio............... 0.60% 0.20% 0.80%(6)
Disciplined Mid Cap Stock Portfolio...... 0.70% 0.25% 0.95%(7)
Disciplined Small Cap Stock Portfolio.... 0.80% 0.20% 1.00%(6)
MFS Emerging Growth Portfolio............ 0.75% 0.12% 0.87%
MFS Research Portfolio................... 0.80% 0.19% 0.99%
Strategic Stock Portfolio................ 0.60% 0.30% 0.90%(6)
</TABLE>
- ---------------
** No longer available to new Contract Owners. Notes:
NOTES:
The purpose of this Fee Table is to assist Contract Owners in understanding the
various costs and expenses that a Contract Owner will bear, directly or
indirectly. See "Charges and Deductions" in this prospectus for additional
information. Expenses shown do not include premium taxes, which may be
applicable. "Other Expenses" include operating costs of the fund. These expenses
are reflected in each funding option's net asset value and are not deducted from
the account value under the Contract.
(1) The Portfolio Management Fee for EQUITY INDEX PORTFOLIO -- CLASS II SHARES
includes 0.06% for fund administration and a distribution plan or "Rule
12b-1 plan". Fees for Class II reflect the period from 3/22/99 (inception
date) to 12/31/99. On March 22, 1999, the fund adopted its current fee
structure.
(2) The Portfolio Management Fee for the TOTAL RETURN PORTFOLIO includes 0.20%
for fund administration.
(3) The Adviser has waived all or a portion of its Management Fees for the year
ended December 31, 1999. If such fees were not waived or expenses
reimbursed, the Management Fee, Other Expenses, and Total Annual Operating
Expenses would have been as follows: 0.70%, 0.45% and 1.15% respectively for
the INVESTORS FUND and 0.80%, 0.85%, and 1.65% respectively for the TOTAL
RETURN FUND.
(4) Each Portfolio of the SMITH BARNEY CONCERT ALLOCATION SERIES INC. (a "fund
of funds") invests in the shares of other mutual funds ("underlying funds").
The Management Fee for each Portfolio is 0.35%. While the Portfolios have no
direct expenses, the "Other Expenses" figure represents a weighted average
of the total expense ratios of the underlying funds as of 1/31/00 (the
fiscal year end of the Portfolios).
(5) Expenses are as of October 31, 1999 (the Fund's fiscal year end). There were
no fees waived or expenses reimbursed for these funds in 1999.
(6) Travelers Insurance Company has agreed to reimburse the CONVERTIBLE BOND
PORTFOLIO, the STRATEGIC STOCK PORTFOLIO, and the DISCIPLINED SMALL CAP
STOCK PORTFOLIO for expenses for the period ended December 31, 1999 which
exceeded 0.80%, 0.90%, 1.00% and 1.00% respectively. Without such voluntary
arrangements, the actual annualized Total Annual Operating Expenses would
have been 1.23%, 0.99%, and 1.49% respectively.
(7) Other Expenses reflect the current expense reimbursement arrangement with
Travelers Insurance Company. Travelers has agreed to reimburse the Portfolio
for the amount by which its aggregate expenses (including management fees,
but excluding brokerage commissions, interest charges and taxes) exceeds
0.95%. Without such arrangements, the Total Annual Operating Expenses for
the Portfolio would have been 0.99% for the DISCIPLINED MID CAP STOCK
PORTFOLIO.
7
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EXAMPLE*: STANDARD DEATH BENEFIT
Assuming a 5% annual return on assets, a $1,000 investment would be subject to
the following expenses:
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------
IF CONTRACT IS SURRENDERED AT THE IF CONTRACT IS NOT SURRENDERED OR
END OF PERIOD SHOWN: ANNUITIZED AT END OF PERIOD SHOWN:
------------------------------------- -------------------------------------
FUNDING OPTION 1 YEAR 3 YEARS 5 YEARS 10 YEARS 1 YEAR 3 YEARS 5 YEARS 10 YEARS
- ------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
DREYFUS VARIABLE INVESTMENT FUND
Small Cap Portfolio............ 80 122 126 229 20 62 106 229
GREENWICH STREET SERIES FUND
Equity Index Portfolio -- Class
II Shares.................... 77 113 112 200 17 53 92 200
Total Return Portfolio......... 80 122 126 230 20 62 106 230
SALOMON BROTHERS VARIABLE SERIES
FUND INC.
Investors Fund................. 82 128 136 250 22 68 116 250
Total Return Fund.............. 82 128 137 252 22 68 117 252
SMITH BARNEY CONCERT ALLOCATION
SERIES INC.
Select Balanced Portfolio...... 83 132 143 263 23 72 123 263
Select Conservative
Portfolio**.................. 83 130 141 259 23 70 121 259
Select Growth Portfolio........ 84 135 149 275 24 75 129 275
Select High Growth
Portfolio**.................. 85 136 149 276 25 76 129 276
Select Income Portfolio**...... 82 129 138 254 22 69 118 254
TRAVELERS SERIES FUND INC.
AIM Capital Appreciation
Portfolio.................... 81 123 129 235 21 63 109 235
Alliance Growth Portfolio...... 80 123 128 233 20 63 108 233
INVESCO Strategic Income
Portfolio.................... 83 132 144 265 23 72 124 265
MFS Total Return Portfolio..... 81 123 129 235 21 63 109 235
Putnam Diversified Income
Portfolio.................... 80 123 128 234 20 63 108 234
Smith Barney High Income
Portfolio.................... 79 118 120 216 19 58 100 216
Smith Barney International
Equity Portfolio............. 82 128 137 252 22 68 117 252
Smith Barney Large
Capitalization Growth
Portfolio.................... 81 124 130 237 21 64 110 237
Smith Barney Large Cap Value
Portfolio.................... 79 118 120 217 19 58 100 217
Smith Barney Money Market
Portfolio.................... 78 114 114 203 18 54 94 203
Smith Barney Pacific Basin
Portfolio.................... 85 137 152 282 25 77 132 282
Travelers Managed Income
Portfolio.................... 80 121 125 227 20 61 105 227
Van Kampen Enterprise
Portfolio.................... 79 120 123 224 19 60 103 224
THE TRAVELERS SERIES TRUST
Convertible Bond Portfolio..... 80 122 127 231 20 62 107 231
Disciplined Mid Cap Stock
Portfolio.................... 82 127 135 247 22 67 115 247
Disciplined Small Cap Stock
Portfolio.................... 82 128 137 252 22 68 117 252
MFS Emerging Growth Portfolio.. 81 124 131 238 21 64 111 238
MFS Research Portfolio......... 82 128 137 251 22 68 117 251
Strategic Stock Portfolio...... 81 125 132 241 21 65 112 241
</TABLE>
* THE EXAMPLE SHOULD NOT BE CONSIDERED A REPRESENTATION OF PAST OR FUTURE
EXPENSES. ACTUAL EXPENSES MAY BE GREATER OR LESS THAN THOSE SHOWN. THE
EXAMPLE REFLECTS THE $30 ANNUAL CONTRACT ADMINISTRATIVE CHARGE AS AN ANNUAL
CHARGE OF 0.014% OF ASSETS.
** No longer available to new Contract Owners.
The Withdrawal Charge is waived if annuity payout has begun or if an income
option of at least 5 years' duration is begun after the first Contract Year.
(See "Charges and Deductions").
8
<PAGE> 9
EXAMPLE*: ENHANCED DEATH BENEFIT
Assuming a 5% annual return on assets, a $1,000 investment would be subject to
the following expenses:
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------
IF CONTRACT IS SURRENDERED AT THE IF CONTRACT IS NOT SURRENDERED OR
END OF PERIOD SHOWN: ANNUITIZED AT END OF PERIOD SHOWN:
------------------------------------- -------------------------------------
FUNDING OPTION 1 YEAR 3 YEARS 5 YEARS 10 YEARS 1 YEAR 3 YEARS 5 YEARS 10 YEARS
- ------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
DREYFUS VARIABLE INVESTMENT FUND
Small Cap Portfolio............ 83 130 140 258 23 70 120 258
GREENWICH STREET SERIES FUND
Equity Index Portfolio -- Class
II Shares.................... 80 122 126 230 20 62 106 230
Total Return Portfolio......... 83 130 141 259 23 70 121 259
SALOMON BROTHERS VARIABLE SERIES
FUND INC.
Investors Fund................. 85 136 150 278 25 76 130 278
Total Return Fund.............. 85 137 151 280 25 77 131 280
SMITH BARNEY CONCERT ALLOCATION
SERIES INC.
Select Balanced Portfolio...... 86 140 157 291 26 80 137 291
Select Conservative Portfolio
**........................... 86 139 155 287 26 79 135 287
Select Growth Portfolio........ 87 144 163 303 27 84 143 303
Select High Growth
Portfolio**.................. 87 144 163 304 27 84 143 304
Select Income Portfolio**...... 85 137 152 282 25 77 132 282
TRAVELERS SERIES FUND INC.
AIM Capital Appreciation
Portfolio.................... 83 132 143 264 23 72 123 264
Alliance Growth Portfolio...... 83 131 142 262 23 71 122 262
INVESCO Strategic Income
Portfolio.................... 86 141 158 293 26 81 138 293
MFS Total Return Portfolio..... 83 132 143 264 23 72 123 264
Putnam Diversified Income
Portfolio.................... 83 132 143 263 23 72 123 263
Smith Barney High Income
Portfolio.................... 82 127 134 246 22 67 114 246
Smith Barney International
Equity Portfolio............. 85 137 151 280 25 77 131 280
Smith Barney Large
Capitalization Growth
Portfolio.................... 84 133 144 266 24 73 124 266
Smith Barney Large Cap Value
Portfolio.................... 82 127 135 247 22 67 115 247
Smith Barney Money Market
Portfolio.................... 80 123 128 233 20 63 108 233
Smith Barney Pacific Basin
Portfolio.................... 88 146 166 309 28 86 146 309
Travelers Managed Income
Portfolio.................... 83 130 139 256 23 70 119 256
Van Kampen Enterprise
Portfolio.................... 82 129 138 253 22 69 118 253
THE TRAVELERS SERIES TRUST
Convertible Bond Portfolio..... 83 131 141 260 23 71 121 260
Disciplined Mid Cap Stock
Portfolio.................... 84 135 149 275 24 75 129 275
Disciplined Small Cap Stock
Portfolio.................... 85 137 151 280 25 77 131 280
MFS Emerging Growth Portfolio.. 84 133 145 267 24 73 125 267
MFS Research Portfolio......... 85 136 151 279 25 76 131 279
Strategic Stock Portfolio...... 84 134 146 270 24 74 126 270
</TABLE>
* THE EXAMPLE SHOULD NOT BE CONSIDERED A REPRESENTATION OF PAST OR FUTURE
EXPENSES. ACTUAL EXPENSES MAY BE GREATER OR LESS THAN THOSE SHOWN. THE
EXAMPLE REFLECTS THE $30 ANNUAL CONTRACT ADMINISTRATIVE CHARGE AS AN ANNUAL
CHARGE OF 0.014% OF ASSETS.
** No longer available to new Contract Owners.
The Withdrawal Charge is waived if annuity payout has begun or if an income
option of at least 5 years' duration is begun after the first Contract Year.
(See "Charges and Deductions").
9
<PAGE> 10
CONDENSED FINANCIAL INFORMATION
- --------------------------------------------------------------------------------
See Appendices A and B.
THE ANNUITY CONTRACT
- --------------------------------------------------------------------------------
Travelers Vintage Annuity is a contract between the contract owner ("you"), and
the Company. You make purchase payments to us and we credit them to your
Contract. The Company promises to pay you an income, in the form of annuity or
income payments, beginning on a future date that you choose, the maturity date.
The purchase payments accumulate tax deferred in the funding options of your
choice. We offer multiple variable funding options, and one fixed account
option. The contract owner assumes the risk of gain or loss according to the
performance of the variable funding options. The contract value is the amount of
purchase payments, plus or minus any investment experience or interest. The
contract value also reflects all surrenders made and charges deducted. There is
generally no guarantee that at the maturity date the contract value will equal
or exceed the total purchase payments made under the Contract. The date the
contract and its benefits become effective is referred to as the contract date.
Each 12-month period following the contract date is called a contract year.
Certain changes and elections must be made in writing to the Company. Where the
term "written request" is used, it means that written information must be sent
to the Company's Home Office in a form and content satisfactory to us.
CONTRACT OWNER INQUIRIES
Any questions you have about your Contract should be directed to the Company's
Home Office at 1-800-842-8573.
PURCHASE PAYMENTS
The initial purchase payment must be at least $5,000. You may make additional
payments of at least $500 at any time. Under certain circumstances, we may waive
the minimum purchase payment requirement. Purchase payments over $1,000,000 may
be made with our prior consent. The initial purchase payment is due and payable
before the Contract becomes effective.
We will apply the initial purchase payment within two business days after we
receive it in good order at our Home Office. Subsequent purchase payments will
be credited to a Contract on the same business day, if received in good order by
our Home Office by 4:00 p.m. Eastern time. A business day is any day that the
New York Stock Exchange is open. Our business day ends at 4:00 p.m. Eastern time
unless we need to close earlier due to an emergency.
ACCUMULATION UNITS
The period between the contract effective date and the maturity date is the
accumulation period. During the accumulation period, an accumulation unit is
used to calculate the value of a Contract. An accumulation unit works like a
share of a mutual fund. Each funding option has a corresponding accumulation
unit value. The accumulation units are valued each business day and their values
may increase or decrease from day to day. The number of accumulation units we
will credit to your Contract once we receive a purchase payment is determined by
dividing the amount directed to each funding option by the value of its
accumulation unit. We calculate the value of an accumulation unit for each
funding option each day the New York Stock Exchange is open. The values are
calculated as of 4:00 p.m. Eastern time. After the value is calculated, we
credit your Contract. During the annuity period (i.e., after the maturity date),
you are credited with annuity units.
10
<PAGE> 11
THE FUNDING OPTIONS
You choose which of the following variable funding options to have your purchase
payments allocated to. These funding options are subsections of the Separate
Account, which invest in the underlying mutual funds ("underlying funds"). You
will find detailed information about the options and their inherent risks in the
current prospectuses for the funding options which must accompany this
prospectus. The Company has entered into agreements with either the investment
adviser or distributor of certain of the underlying funds in which the adviser
or distributor pays us a fee for providing administrative services, which fee
may vary. The fee is ordinarily based upon an annual percentage of the average
aggregate net amount invested in the underlying funds on behalf of the Separate
Account. You are not investing directly in the underlying fund. Since each
option has varying degrees of risk, please read the prospectuses carefully
before investing. Contact your registered representative or call 1-800-842-8573
to request additional copies of the prospectuses.
If any of the funding options become unavailable for allocating purchase
payments, or if we believe that further investment in a funding option is
inappropriate for the purposes of the Contract, we may substitute another
funding option. However, we will not make any substitutions without notifying
you and obtaining any state and SEC approval, if necessary. From time to time we
may make new funding options available.
The current variable funding options are listed below, along with their
investment advisers and any subadviser:
<TABLE>
<CAPTION>
INVESTMENT
FUNDING OPTION OBJECTIVE INVESTMENT ADVISER/SUBADVISER
- --------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
DREYFUS VARIABLE INVESTMENT
FUND
Small Cap Portfolio Seeks to maximize capital appreciation. The Dreyfus Corporation
GREENWICH STREET SERIES FUND
Equity Index Portfolio-- Seeks to replicate, before deduction of expenses, Travelers Investment Management
Class II Shares the total return performance of the S&P 500 Index. Co. ("TIMCO")
Total Return Portfolio An equity portfolio that seeks to provide total SSB Citi Fund Management LLC
return, consisting of long-term capital ("SSB Citi")
appreciation and income. The Portfolio will invest
primarily in a diversified portfolio of
dividend-paying common stocks.
SALOMON BROTHERS VARIABLE
SERIES FUND, INC.
Investors Fund Seeks long-term growth of capital, and, Salomon Brothers Asset
secondarily, current income, through investments Management ("SBAM")
in common stocks of well-known companies.
Total Return Fund Seeks above-average income (compared to a portfo- SBAM
lio invested entirely in equity securities).
Secondarily, seeks opportunities for growth of
capital and income.
SMITH BARNEY CONCERT ALLOCATION
SERIES INC.
Select Balanced Portfolio Seeks a balance of growth of capital and income by Travelers Investment Advisers
investing in a select group of mutual funds. ("TIA")
Select Growth Portfolio Seeks long-term growth of capital by investing in TIA
a select group of mutual funds.
TRAVELERS SERIES FUND INC.
AIM Capital Appreciation Seeks capital appreciation by investing TIA
Portfolio principally in common stock, with emphasis on Subadviser: Alliance Capital
medium-sized and smaller companies. Management L.P.
Alliance Growth Portfolio Seeks long-term growth of capital. Current income TIA
is only an incidental consideration. The Portfolio Subadviser: Alliance Capital
invests predominantly in equity securities of Management L.P.
companies with a favorable outlook for earnings
and whose rate of growth is expected to exceed
that of the U.S. economy over time.
</TABLE>
11
<PAGE> 12
<TABLE>
<CAPTION>
INVESTMENT
FUNDING OPTION OBJECTIVE INVESTMENT ADVISER/SUBADVISER
- --------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
TRAVELERS SERIES FUND, INC.,
CONT.
INVESCO Strategic Income Seeks primarily high current income and, TIA
Portfolio secondarily, capital appreciation. The Portfolio Subadviser: Chancellor LGT
allocates its assets among debt securities of Asset Management, Inc.
issuers in the U.S., developed foreign countries
and emerging markets.
MFS Total Return Portfolio Seeks to obtain above-average income (compared to TIA
a portfolio entirely invested in equity Subadviser: Massachusetts
securities) consistent with the prudent employment Financial Services Company
of capital. Generally, at least 40% of the ("MFS")
Portfolio's assets will be invested in equity
securities.
Putnam Diversified Income Seeks high current income consistent with TIA
Portfolio preservation of capital. The Portfolio will Subadviser: Putnam Investment
allocate its investments among the U.S. Government Management, Inc.
Sector, the High Yield Sector, and the
International Sector of the fixed income
securities markets.
Smith Barney High Income Seeks high current income. Capital appreciation is SSB Citi
Portfolio a secondary objective. The Portfolio will invest
at least 65% of its assets in high-yielding
corporate debt obligations and preferred stock.
Smith Barney International Seeks total return on assets from growth of SSB Citi
Equity Portfolio capital and income by investing at least 65% of
its assets in a diversified portfolio of equity
securities of established non-U.S. issuers.
Smith Barney Large Seeks long-term growth of capital by investing in SSB Citi
Capitalization Growth equity securities of companies with large market
Portfolio capitalizations.
Smith Barney Large Cap Seeks current income and long-term growth of SSB Citi
Value Portfolio income and capital by investing primarily, but not
exclusively, in common stocks.
Smith Barney Money Market Seeks maximum current income and preservation of SSB Citi
Portfolio capital.
Smith Barney Pacific Basin Seeks long-term capital appreciation through SSB Citi
Portfolio investment primarily in equity securities of
companies in Asian Pacific countries.
Travelers Managed Income Seeks high current income consistent with prudent TIA
Portfolio risk of capital through investments in corporate Subadviser: Travelers Asset
debt obligations, preferred stocks, and Management International
obligations issued or guaranteed by the U.S. Company LLC ("TAMIC")
Government or its agencies or instrumentalities.
Van Kampen Enterprise Seeks capital appreciation through investment in SSB Citi
Portfolio securities believed to have above-average Subadviser: Van Kampen Asset
potential for capital appreciation. Any income Management Inc.
received on such securities is incidental to the
objective of capital appreciation.
THE TRAVELERS SERIES TRUST
Convertible Bond Portfolio Seeks current income and capital appreciation by TAMIC
investing in convertible bond securities and in
combinations of nonconvertible fixed-income
securities and warrants or call options that
together resemble convertible securities.
Disciplined Mid Cap Stock Seeks growth of capital by investing primarily in TAMIC
Portfolio a broadly diversified portfolio of U.S. common Subadviser: TIMCO
stocks.
Disciplined Small Cap Stock Seeks long term capital appreciation by investing TAMIC
Portfolio primarily (at least 65% of its total assets) in Subadviser: TIMCO
the common stocks of U.S. Companies with
relatively small market capitalizations at the
time of investment.
</TABLE>
12
<PAGE> 13
<TABLE>
<CAPTION>
INVESTMENT
FUNDING OPTION OBJECTIVE INVESTMENT ADVISER/SUBADVISER
- --------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
TRAVELERS SERIES TRUST, CONT.
MFS Emerging Growth Seeks to provide long-term growth of capital. TAMIC
Portfolio Dividend and interest income from portfolio Subadviser: MFS
securities, if any, is incidental to the MFS
Portfolio's investment objective.
MFS Research Portfolio Seeks to provide long-term growth of capital and TAMIC
future income. Subadviser: MFS
Strategic Stock Portfolio Seeks to provide an above-average total return TAMIC
through a combination of potential capital Subadviser: TIMCO
appreciation and dividend income by investing
primarily in high dividend yielding stocks
periodically selected from the companies included
in (i) the Dow Jones Industrial Average and (ii) a
subset of the S&P Industrial Index.
</TABLE>
CHARGES AND DEDUCTIONS
- --------------------------------------------------------------------------------
GENERAL
We deduct the charges described below. The charges are for the service and
benefits we provide, costs and expenses we incur, and risks we assume under the
Contracts. Services and benefits we provide include:
- the ability for you to make withdrawals and surrenders under the
Contracts;
- the death benefit paid on the death of the contract owner, annuitant, or
first of the joint owners,
- the available funding options and related programs (including dollar-cost
averaging, portfolio rebalancing, and systematic withdrawal programs);
- administration of the annuity options available under the Contracts; and
- the distribution of various reports to contract owners.
Costs and expenses we incur include:
- losses associated with various overhead and other expenses associated
with providing the services and benefits provided by the Contracts,
- sales and marketing expenses including commission payments to your Smith
Barney Financial Consultant, and
- other costs of doing business.
Risks we assume include:
- that annuitants may live longer than estimated when the annuity factors
under the Contracts were established;
- that the amount of the death benefit will be greater than the contract
value, and
- that the costs of providing the services and benefits under the Contracts
will exceed the charges deducted.
We may also deduct a charge for taxes.
Unless otherwise specified, charges are deducted proportionately from all
funding options in which you are invested.
13
<PAGE> 14
We may reduce or eliminate the withdrawal charge, the administrative charges
and/or the mortality and expense risk charge under the Contract when certain
sales or administration of the Contract result in savings or reduced expenses
and/or risks. For certain trusts, we may change the order in which purchase
payments and earnings are withdrawn in order to determine the withdrawal charge.
We will not reduce or eliminate the withdrawal charge or the administrative
charge where such reduction or elimination would be unfairly discriminatory to
any person.
WITHDRAWAL CHARGE
We do not deduct a sales charge from purchase payments when they are made to the
Contract. However, a withdrawal charge will apply if purchase payments are
withdrawn before they have been in the Contract for seven years. We will assess
the charge as a percentage of the purchase payment withdrawn as follows:
<TABLE>
<CAPTION>
YEARS SINCE PURCHASE WITHDRAWAL
PAYMENT MADE CHARGE
<S> <C>
0-1 6%
2 6%
3 6%
4 3%
5 2%
6 1%
7+ 0%
</TABLE>
For purposes of the withdrawal charge calculation, withdrawals are deemed to be
taken first from:
(a) any purchase payment to which no withdrawal charge applies, and then
(b) any remaining free withdrawal allowance (as described below) (after
being reduced by (a)), then
(c) from any purchase payment to which a withdrawal charge applies (on a
first-in, first-out basis), then
(d) from any Contract earnings.
Unless you instruct us otherwise, we will deduct the withdrawal charge from the
amount requested.
We will not deduct a withdrawal charge:
- due to the death of the contract owner or the annuitant (with no
contingent annuitant surviving);
- if an annuity payout has begun
- due to a minimum distribution under our minimum distribution rules
then in effect; or
- if an income option of at least five year's duration is begun after
the first contract year.
FREE WITHDRAWAL ALLOWANCE
Beginning in the second contract year, you may withdraw up to 15% of the
contract value annually without a withdrawal charge. We calculate the available
withdrawal amount as of the end of the previous contract year. The free
withdrawal provision applies to all partial withdrawals, except those
transferred directly to annuity contracts issued by other financial
institutions. We reserve the right to not permit the provision on a full
surrender. In Washington state, the free withdrawal provision applies to all
withdrawals.
14
<PAGE> 15
ADMINISTRATIVE CHARGES
We will deduct an annual contract administrative charge on the fourth Friday of
each August from Contracts with a value of less than $40,000 on that date. This
charge compensates us for expenses incurred in establishing and maintaining the
Contract. The $30 charge is deducted from the contract value by canceling
accumulation units applicable to each variable funding option on a pro rata
basis. For the first Contract year this charge will be prorated (i.e.
calculated) from the date of purchase. A prorated charge will also be made if
the Contract is completely withdrawn or terminated. We will not deduct a
contract administrative charge:
(1) from the distribution of death proceeds;
(2) after an annuity payout has begun, or
(3) if the contract value on the date of assessment equals or is greater
than $40,000.
An administrative expense charge (sometimes called "sub-account administrative
charge") is deducted on each business day from amounts allocated to the variable
funding options in order to compensate the Company for certain related
administrative and operating expenses. The charge equals, on an annual basis,
0.15% of the daily net asset value allocated to each of the variable funding
options.
MORTALITY AND EXPENSE RISK CHARGE
Each business day, the Company deducts a mortality and expense risk ("M&E")
charge from amounts held in the variable funding options. The deduction is
reflected in our calculation of accumulation and annuity unit values. The
charges stated are the maximum for this product. We reserve the right to lower
this charge at any time.
If you choose the Standard Death Benefit, the M&E charge is 1.02% annually. If
you choose the Enhanced Death Benefit, the M&E charge is 1.30% annually. This
charge compensates the Company for risks assumed, benefits provided and expenses
incurred, including the payment of commissions to your sales agent.
FUNDING OPTION EXPENSES
The charges and expenses of the funding options are summarized in the fee table
and are described in the accompanying prospectuses.
PREMIUM TAX
Certain state and local governments charge premium taxes ranging from 0% to 5%,
depending upon jurisdiction. The Company is responsible for paying these taxes
and will determine the method used to recover premium tax expenses incurred. We
will deduct any applicable premium taxes from the contract value either upon
death, surrender, annuitization, or at the time purchase payments are made to
the Contract, but no earlier than when we have a tax liability under state law.
CHANGES IN TAXES BASED UPON PREMIUM OR VALUE
If there is any change in a law assessing taxes against the Company based upon
premiums, contract gains or value of the contract, we reserve the right to
charge you proportionately for this tax.
15
<PAGE> 16
TRANSFERS
- --------------------------------------------------------------------------------
Up to 30 days before the maturity date, you may transfer all or part of the
contract value between funding options. Transfers are made at the value(s) next
determined after we receive your request at the Home Office. There are no
charges or restrictions on the amount or frequency of transfers currently;
however, we reserve the right to charge a fee for any transfer request, and to
limit the number of transfers to one in any six-month period. We also reserve
the right to restrict transfers by any market timing firm or any other third
party authorized to initiate transfers on behalf of multiple contract owners. We
may, among other things, not accept: 1) the transfer instructions of any agent
acting under a power of attorney on behalf of more than one owner, or 2) the
transfer or exchange instructions of individual owners who have executed
pre-authorized transfer forms which are submitted by market timing firms or
other third parties on behalf of more than one owner. We further reserve the
right to limit transfers that we determine will disadvantage other contract
owners.
Since different funding options have different expenses, a transfer of contract
values from one funding option to another could result in your investment
becoming subject to higher or lower expenses. After the maturity date, you may
make transfers between funding options only with our consent.
DOLLAR COST AVERAGING
Dollar cost averaging or the pre-authorized transfer program (the "DCA Program")
allows you to transfer a set dollar amount to other funding options on a monthly
or quarterly basis during the accumulation phase of the Contract. Using this
method, more accumulation units are purchased in a funding option if the value
per unit is low and fewer accumulation units are purchased if the value per unit
is high. Therefore, a lower-than-average cost per unit may be achieved over the
long run.
You may elect the DCA Program through written request or other method acceptable
to the Company. You must have a minimum total Contract Value of $5,000 to enroll
in the DCA Program. The minimum amount that may be transferred through this
program is $100.
You may establish pre-authorized transfers of Contract Values from the Fixed
Account, subject to certain restrictions. Under the DCA Program, automated
transfers from the Fixed Account may not deplete your Fixed Account Value in
less than twelve months from your enrollment in the DCA Program.
In addition to the DCA Program, Travelers may credit increased interest rates to
contract owners under an administrative Special DCA Program established at the
discretion of Travelers, depending on availability and state law. Under this
program, the contract owner may pre-authorize level transfers to any of the
funding options under either a 6 Month Program or 12 Month Program. The 6 Month
Program and the 12 Month Program will generally have different credited interest
rates. Under the 6 Month Program, the interest rate can accrue up to 6 months on
funds in the Special DCA Program and all purchase payments and accrued interest
must be transferred on a level basis to the selected funding option in 6 months.
Under the 12 Month Program, the interest rate can accrue up to 12 months on
funds in the Special DCA Program and all purchase payments and accrued interest
in this Program must be transferred on a level basis to the selected funding
options in 12 months.
The pre-authorized transfers will begin after the initial Program purchase
payment and complete enrollment instructions are received by Travelers. If
complete Program enrollment instructions are not received by the Company within
15 days of receipt of the initial Program purchase payment, the entire balance
in the Program will be credited with the non-Program interest rate then in
effect for the Fixed Account.
16
<PAGE> 17
You may start or stop participation in the DCA Program at any time, but you must
give the Company at least 30 days' notice to change any automated transfer
instructions that are currently in place. If you stop the Special DCA Program
and elect to remain in the Fixed Account, your Contract Value will be credited
for the remainder of 6 or 12 months with the interest rate for non-Program
funds.
A contract owner may only have one DCA Program or Special DCA Program in place
at one time. Any subsequent purchase payments received by the Company within the
Program period selected will be allocated to the current funding options over
the remainder of that Program transfer period, unless otherwise directed by the
contract owner.
All provisions and terms of the Contract apply to the DCA and Special DCA
Programs, including provisions relating to the transfer of money between
investment options. We reserve the right to suspend or modify transfer
privileges at any time and to assess a processing fee for this service.
ACCESS TO YOUR MONEY
- --------------------------------------------------------------------------------
Any time before the maturity date, you may redeem all or any portion of the cash
surrender value, that is, the contract value less any withdrawal charge and any
premium tax not previously deducted. Unless you submit a written request
specifying the fixed or variable funding option(s) from which amounts are to be
withdrawn, the withdrawal will be made on a pro rata basis. The cash surrender
value will be determined as of the close of business after we receive your
surrender request at the Home Office. The cash surrender value may be more or
less than the purchase payments made. Withdrawals during the annuity period are
not allowed.
We may defer payment of any cash surrender value for a period of up to seven
days after the written request is received, but it is our intent to pay as soon
as possible. We cannot process requests for withdrawals that are not in good
order. We will contact you if there is a deficiency causing a delay and will
advise what is needed to act upon the withdrawal request.
SYSTEMATIC WITHDRAWALS
After the first contract year and before the maturity date, you may choose to
withdraw a specified dollar amount (at least $100) on a monthly, quarterly,
semiannual or annual basis. Any applicable premium taxes and withdrawal charge
will be deducted. To elect systematic withdrawals, you must have a contract
value of at least $15,000 and you must make the election on the form provided by
the Company. We will surrender accumulation units pro rata from all investment
options in which you have an interest, unless you instruct us otherwise. You may
begin or discontinue systematic withdrawals at any time by notifying us in
writing, but at least 30 days' notice must be given to change any systematic
withdrawal instructions that are currently in place.
We reserve the right to discontinue offering systematic withdrawals or to assess
a processing fee for this service upon 30 days' written notice to contract
owners (where allowed by state law).
Each systematic withdrawal is subject to federal income taxes on the taxable
portion. In addition, a 10% federal penalty tax may be assessed on systematic
withdrawals if the contract owner is under age 59 1/2. You should consult with
your tax adviser regarding the tax consequences of systematic withdrawals.
LOANS
Loans may be available under your Contract. If available, all loan provisions
are described in your Contract or loan agreement.
17
<PAGE> 18
OWNERSHIP PROVISIONS
- --------------------------------------------------------------------------------
TYPES OF OWNERSHIP
CONTRACT OWNER
CONTRACT OWNER ("you"). The Contract belongs to the contract owner named in the
Contract (on the Specifications page), or to any other person to whom the
contract is subsequently assigned. An assignment of ownership or a collateral
assignment may be made only for nonqualified contracts. You have sole power
during the annuitant's lifetime to exercise any rights and to receive all
benefits given in the contract provided you have not named an irrevocable
beneficiary and provided the Contract is not assigned.
You receive all payments while the annuitant is alive unless you direct them to
an alternate recipient. An alternate recipient does not become the contract
owner.
JOINT OWNER. For nonqualified contracts only, joint owners (e.g. spouses) may
be named in a written request before the contract is in effect. Joint owners may
independently exercise transfers allowed under the Contract. All other rights of
ownership must be exercised by both owners. Joint owners own equal shares of any
benefits accruing or payments made to them.
SUCCEEDING OWNER. For nonqualified contracts only, if joint owners are not
named, the contract owner may name a succeeding owner in a written request. The
succeeding owner becomes the contract owner if living when the contract owner
dies. The succeeding owner had no interest in the Contract before then. The
contract owner may change or delete a succeeding owner by written request.
BENEFICIARY
You name the beneficiary in a written request. The beneficiary has the right to
receive any death proceeds under the contract upon the death of the annuitant or
a contract owner. If more than one beneficiary survives the annuitant or
contract owner, they will share equally in benefits unless different shares are
recorded with the Company by written request before the death of the annuitant
or contract owner.
In the case of a non-spousal beneficiary or a spousal beneficiary who has not
chosen to assume the contract, the death benefit proceeds will be held in a
fixed account until the beneficiary elects a Settlement Option or takes a
distribution.
Unless an irrevocable beneficiary has been named, you have the right to change
any beneficiary by written request during the lifetime of the annuitant and
while the Contract continues.
ANNUITANT
The annuitant is designated in the Contract (on the Specifications page), and is
the individual on whose life the maturity date and the amount of the monthly
annuity payments depend. The annuitant may not be changed after the contract is
in effect.
A contingent annuitant may not be changed, deleted or added after the Contract
becomes effective.
DEATH BENEFIT
- --------------------------------------------------------------------------------
Before the maturity date, when there is no contingent annuitant, a death benefit
is payable when either the annuitant or a contract owner dies. At purchase, you
elect either the Standard Death Benefit, or the Enhanced Death Benefit (also
referred to as the "Roll-Up Death Benefit"). The
18
<PAGE> 19
death benefit is calculated at the close of the business day on which the
Company's Home Office receives due proof of death and written payment
instructions (the death report date).
DEATH PROCEEDS BEFORE THE MATURITY DATE
STANDARD DEATH BENEFIT
DEATH OF ANY OWNER OR THE ANNUITANT BEFORE AGE 75. The Company will pay to the
beneficiary a death benefit in an amount equal to the greatest of (1), (2) or
(3) below, each reduced by any applicable premium tax or outstanding loans:
(1) the contract value;
(2) the total purchase payments made under the Contract; or
(3) the contract value on the latest fifth contract year anniversary
immediately preceding the date on which the Company receives due proof
of death.
DEATH OF ANY OWNER OR THE ANNUITANT ON OR AFTER AGE 75. The Company will pay to
the beneficiary a death benefit in an amount equal to the greatest of (1), (2)
or (3) below, each reduced by any applicable premium tax or outstanding loans:
(1) the contract value;
(2) the total purchase payments made under the Contract; or
(3) the contract value on the latest fifth contract year anniversary
occurring on or before the annuitant's 75th birthday.
ENHANCED DEATH BENEFIT (ROLL-UP DEATH BENEFIT)
(NOT AVAILABLE WHEN EITHER THE ANNUITANT OR OWNER IS AGE 76 OR OLDER ON THE
CONTRACT DATE)
<TABLE>
<S> <C>
---------------------------------------------------------------------------------------------------------------
AGE OF DEATH DEATH BENEFIT
---------------------------------------------------------------------------------------------------------------
If the annuitant dies before age 80, the - the contract value;
death benefit will be the greatest of: - the roll-up death benefit value (as described below);
or
- the step-up value, if any, as described below.
---------------------------------------------------------------------------------------------------------------
If the annuitant dies on or after age 80, the death - the contract value;
benefit will be the greatest of: - the roll-up death benefit value (as described below)
on the annuitant's 80(th) birthday, plus any
additional purchase payments and minus any partial
surrender reductions (as described below) that occur
after the annuitant's 80(th) birthday; or
- the step-up value, if any, as described below.
---------------------------------------------------------------------------------------------------------------
</TABLE>
19
<PAGE> 20
ROLL-UP DEATH BENEFIT
(not available when either the annuitant or owner is age 76 or older on the
contract date)
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------
AGE AT DEATH DEATH BENEFIT
- ------------------------------------------------------------------------------------------
<S> <C>
If the annuitant dies before age 80, the - the contract value;
death benefit will be the greatest of: - the roll-up death benefit value (as
described below); or
- the step-up value, if any, as described
below.
- ------------------------------------------------------------------------------------------
If the annuitant dies on or after age 80, - the contract value;
the death benefit will be the greatest - the roll-up death benefit value (as
of: described below) on the annuitant's
80(th) birthday, plus any additional
purchase payments and minus any partial
surrender reductions (as described below)
that occur after the annuitant's 80(th)
birthday; or
- the step-up value, if any, as described
below.
- ------------------------------------------------------------------------------------------
</TABLE>
STEP-UP VALUE (FOR ANNUAL STEP-UP AND ROLL-UP DEATH BENEFITS)
A step-up value will be established on the seventh contract date anniversary
(provided it is before the death report date). The initial step-up value will
equal the contract value on that anniversary. Whenever a purchase payment is
made, the step-up value will be increased by the amount of that purchase
payment. Whenever a partial surrender is taken, the step-up value will be
reduced by a partial surrender reduction as described below. On each contract
date anniversary that occurs before the annuitant's 80th birthday and before the
annuitant's death, if the contract value is greater than the step-up value, the
step-up value will be reset to equal the contract value on that date. If the
step-up value is greater than the contract value, the step-up value will remain
unchanged. The step-up value will not be reduced on these anniversary
recalculations (provided no surrenders are made on that day). The only changes
made to the step-up value on or after the annuitant's 80th birthday will be
those related to additional purchase payments or partial surrenders as described
below. If the death report date is before the seventh contract date anniversary,
there is no step-up value.
ROLL-UP DEATH BENEFIT VALUE
On the contract date, the roll-up death benefit value is equal to the purchase
payment. On each contract date anniversary, the roll-up death benefit value will
be recalculated to equal a) plus b) minus c), increased by 5%, where:
a) is the roll-up death benefit value as of the previous contract date
anniversary
b) is any purchase payment made during the previous contract year
c) is any partial surrender reduction (as described below) during the
previous contract year
On dates other than the contract date anniversary, the roll-up death benefit
value will equal a) plus b) minus c) where:
a) is the roll-up death benefit value as of the previous contract date
anniversary
20
<PAGE> 21
b) is any purchase payment made during the previous contract year
c) is any partial surrender reduction (as described below) during the
previous contract year
The maximum roll-up death benefit equals 200% of the difference between all
purchase payments and all partial surrender reductions (as described below).
THE PARTIAL SURRENDER REDUCTION referenced above is equal to (1) the amount of a
Death Benefit Value (Step-Up or Roll-Up) immediately prior to the reduction for
the partial surrender, multiplied by (2) the amount of the partial surrender
divided by the contract value immediately prior to the partial surrender.
For example, assume your current contract value is $55,000. If your original
step-up value is $50,000, and you decide to make a partial withdrawal of
$10,000, the step-up value would be reduced as follows:
50,000 X (10,000/55,000) = 9,090
Your new step-up value would be 50,000-9,090, or $40,910.
The following example shows what would happen in a declining market. Assume your
current contract value is $30,000. If your original step-up value is $50,000,
and you decide to make a partial withdrawal of $10,000, the step-up value would
be reduced as follows:
50,000 X (10,000/30,000) = 16,666
Your new step-up value would be 50,000-16,666, or $33,334.
PAYMENT OF PROCEEDS
The process of paying death benefit proceeds before the maturity date under
various situations for nonqualified contracts and qualified contracts is
summarized in the charts below. The charts do not encompass every situation and
are merely intended as a general guide. More detailed information is provided in
your Contract. Generally, the person(s) receiving the benefit may request that
the proceeds be paid in a lump sum, or be applied to one of the settlement
options available under the Contract.
21
<PAGE> 22
NONQUALIFIED CONTRACTS
<TABLE>
<S> <C> <C> <C>
- ---------------------------------------------------------------------------------------------------------------
BEFORE THE MATURITY DATE, THE COMPANY WILL PAY THE UNLESS... MANDATORY PAYOUT
UPON THE DEATH OF THE PROCEEDS TO: RULES APPLY*
- ---------------------------------------------------------------------------------------------------------------
Owner (who is not the The beneficiary(ies), or Unless, the beneficiary is the Yes
annuitant) (with no joint if none, to the contract contract owner's spouse and
owner) owner's estate the spouse elects to continue
the contract as the new owner
rather than receive the
distribution.
- ---------------------------------------------------------------------------------------------------------------
Owner (who is the annuitant) The beneficiary(ies), or Unless, the beneficiary is the Yes
(with no joint owner) if none, to the contract contract owner's spouse and
owner's estate. the spouse elects to continue
the contract as the new owner
rather than receive the
distribution.
- ---------------------------------------------------------------------------------------------------------------
Joint Owner (who is not the The surviving joint Unless the surviving joint Yes
annuitant) owner. owner is the spouse and elects
to assume and continue the
contract.
- ---------------------------------------------------------------------------------------------------------------
Joint Owner (who is the The beneficiary(ies), or Unless, the beneficiary is the Yes
annuitant) if none, to the contract contract owner's spouse and
owner's estate. the spouse elects to assume
and continue the contract.
Or, unless there is a
contingent annuitant the
contingent annuitant becomes
the annuitant and the proceeds
will be paid to the surviving
joint owner. If the surviving
joint owner is the spouse, the
spouse, may elect to assume
and continue the contract.
- ---------------------------------------------------------------------------------------------------------------
Owner (with a surviving succeeding owner Unless the succeeding owner is Yes
succeeding owner) the contract owner's spouse
and the spouse elects to
continue the contract as the
new owner rather than receive
the distribution.
- ---------------------------------------------------------------------------------------------------------------
Annuitant (who is not the The beneficiary(ies) Unless, there is a contingent No
contract owner) annuitant. Then, the
contingent annuitant becomes
the annuitant and the Contract
continues in effect (generally
using the original maturity
date). The proceeds will then
be paid upon the death of the
contingent annuitant or owner.
- ---------------------------------------------------------------------------------------------------------------
Annuitant (who is the contract See death of "owner who N/A
owner) is the annuitant" above
- ---------------------------------------------------------------------------------------------------------------
Annuitant (where owner is a The beneficiary(ies) Yes (Death of
nonnatural person/trust) (e.g. the trust) annuitant is
treated as death
of the owner in
these
circumstances.)
- ---------------------------------------------------------------------------------------------------------------
Contingent Annuitant (assuming No death proceeds are N/A
annuitant is still alive) payable; contract
continues.
- ---------------------------------------------------------------------------------------------------------------
</TABLE>
22
<PAGE> 23
<TABLE>
<S> <C> <C> <C>
- ---------------------------------------------------------------------------------------------------------------
BEFORE THE MATURITY DATE, THE COMPANY WILL PAY THE UNLESS... MANDATORY PAYOUT
UPON THE DEATH OF THE PROCEEDS TO: RULES APPLY*
- ---------------------------------------------------------------------------------------------------------------
Beneficiary No death proceeds are N/A
payable; contract
continues.
- ---------------------------------------------------------------------------------------------------------------
Contingent Beneficiary No death proceeds are N/A
payable; contract
continues.
- ---------------------------------------------------------------------------------------------------------------
</TABLE>
* Certain payout rules of the Internal Revenue Code (IRC) are triggered upon the
death of any Owner. Non-spousal Beneficiaries (as well as spousal
beneficiaries who choose not to assume the contract) must begin taking
distributions based on the Beneficiary's life expectancy within one year of
death or take a complete distribution of contract proceeds within 5 years of
death.
QUALIFIED CONTRACTS
<TABLE>
<S> <C> <C> <C>
- --------------------------------------------------------------------------------------------------------------
BEFORE THE MATURITY DATE, UPON THE COMPANY WILL PAY THE UNLESS... MANDATORY PAYOUT
THE DEATH OF THE PROCEEDS TO: RULES APPLY (SEE *
ABOVE)
- --------------------------------------------------------------------------------------------------------------
Owner/Annuitant The beneficiary(ies), or Yes
if none, to the contract
owner's estate
- --------------------------------------------------------------------------------------------------------------
Beneficiary No death proceeds are N/A
payable; contract
continues.
- --------------------------------------------------------------------------------------------------------------
Contingent Beneficiary No death proceeds are N/A
payable; contract
continues.
- --------------------------------------------------------------------------------------------------------------
</TABLE>
DEATH PROCEEDS AFTER THE MATURITY DATE
If any owner or the annuitant dies on or after the maturity date, the Company
will pay the beneficiary a death benefit consisting of any benefit remaining
under the annuity or income option then in effect.
THE ANNUITY PERIOD
- --------------------------------------------------------------------------------
MATURITY DATE
Under the Contract, you can receive regular income payments (annuity payments).
You can choose the month and the year in which those payments begin (maturity
date). You can also choose among income plans (annuity or income options). While
the annuitant is alive, you can change your selection any time up to the
maturity date. Annuity or income payments will begin on the maturity date stated
in the Contract unless the Contract has been fully surrendered or the proceeds
have been paid to the beneficiary before that date, or unless you elect another
date. Annuity payments are a series of periodic payments (a) for life; (b) for
life with either a minimum number of payments or a specific amount assured; or
(c) for the joint lifetime of the annuitant and another person, and thereafter
during the lifetime of the survivor. We may require proof that the annuitant is
alive before annuity payments are made. Not all options may be available in all
states.
You may choose to annuitize at any time after you purchase the contract. Unless
you elect otherwise, the maturity date will be the annuitant's 70th birthday for
qualified contracts, or, for nonqualified contracts, the annuitant's 75th
birthday or ten years after the effective date of the
23
<PAGE> 24
contract, if later. (For Contracts issued in Florida and New York, the maturity
date elected may not be later than the annuitant's 90th birthday.)
At least 30 days before the original maturity date, a contract owner may elect
to extend the maturity date to any time prior to the annuitant's 85th birthday
or for qualified contracts, to a later date with the Company's consent. Certain
annuity options taken at the maturity date may be used to meet the minimum
required distribution requirements of federal tax law, or a program of partial
surrenders may be used instead. These mandatory distribution requirements take
effect generally upon the death of the contract owner, or with qualified
contracts upon either the later of the April 1 following the contract owner's
attainment of age 70 1/2 or year of retirement; or the death of the contract
owner. You should seek independent tax advice regarding the election of minimum
required distributions.
ALLOCATION OF ANNUITY
When an annuity option is elected, it may be elected as a variable annuity, a
fixed annuity, or a combination of both. If, at the time annuity payments begin,
no election has been made to the contrary, the cash surrender value will be
applied to provide an annuity funded by the same investment options as you have
selected during the accumulation period (contract value, in Oregon). At least 30
days before the maturity date, you may transfer the contract value among the
funding options in order to change the basis on which annuity payments will be
determined. (See "Transfers.")
VARIABLE ANNUITY
You may choose an annuity payout that fluctuates depending on the investment
experience of the variable funding options. The number of annuity units credited
to the Contract is determined by dividing the first monthly annuity payment
attributable to each funding option by the corresponding accumulation unit value
as of 14 days before the date annuity payments begin. An annuity unit is used to
measure the dollar value of an annuity payment. The number of annuity units (but
not their value) remains fixed during the annuity period.
DETERMINATION OF FIRST ANNUITY PAYMENT. The Contract contains tables used to
determine the first monthly annuity payment. If a variable annuity is elected,
the amount applied to it will be the value of the funding options as of 14 days
before the date annuity payments begin less any applicable premium taxes not
previously deducted.
The amount of the first monthly payment depends on the annuity option elected
and the annuitant's adjusted age. A formula for determining the adjusted age is
contained in the Contract. The total first monthly annuity payment is determined
by multiplying the benefit per $1,000 of value shown in the Contract tables by
the number of thousands of dollars of contract value applied to that annuity
option and factors in an assumed daily net investment factor. The Assumed Daily
Net Investment factor corresponds to an annual interest rate of 3%, used to
determine the guaranteed payout rates shown. If investment rates are higher at
the time annuitization is selected, payout rates will be higher than those
shown. The Company reserves the right to require satisfactory proof of age of
any person on whose life annuity payments are based before making the first
payment under any of the payment options.
DETERMINATION OF SECOND AND SUBSEQUENT ANNUITY PAYMENTS. The dollar amount of
all subsequent annuity payments changes from month to month based on the
investment experience of the applicable funding options. The total amount of
each annuity payment will be equal to the sum of the basic payments in each
funding option. The actual amounts of these payments are determined by
multiplying the number of annuity units credited to each funding option by the
corresponding annuity unit value as of the date 14 days before the date the
payment is due.
24
<PAGE> 25
FIXED ANNUITY
You may choose a fixed annuity that provides payments which do not vary during
the annuity period. We will calculate the dollar amount of the first fixed
annuity payment as described under "Variable Annuity," except that the amount
applied to begin the annuity will be the cash surrender value, determined as of
the date annuity payments begin. Payout rates will not be lower than those shown
in the Contract. If it would produce a larger payment, the first fixed annuity
payment will be determined using the Life Annuity Tables in effect on the
maturity date.
PAYMENT OPTIONS
- --------------------------------------------------------------------------------
ELECTION OF OPTIONS
While the annuitant is alive, you can change your annuity or income option
selection any time up to the maturity date. Once annuity or income payments have
begun, no further elections are allowed.
During the annuitant's lifetime, if you do not elect otherwise before the
maturity date, we will pay you (or another designated payee) the first of a
series of monthly annuity or income payments based on the life of the annuitant,
in accordance with Annuity Option 2 (Life Annuity with 120 monthly payments
assured). For certain qualified contracts, Annuity Option 4 (Joint and Last
Survivor Joint Life Annuity -- Annuity Reduced on Death of Primary Payee) will
be the automatic option as described in the Contract.
The minimum amount that can be placed under an annuity or income option will be
$2,000 unless we agree to a lesser amount. If any monthly periodic payment due
is less than $100, the Company reserves the right to make payments at less
frequent intervals, or to pay the contract value in a lump-sum.
On the maturity date, we will pay the amount due under the Contract in
accordance with the payment option that you select. You may choose to receive a
single lump-sum payment. You must elect an option in writing, in a form
satisfactory to the Company. Any election made during the lifetime of the
annuitant must be made by the contract owner.
ANNUITY OPTIONS
Subject to the conditions described in "Election of Options" above, all or any
part of the cash surrender value (less any applicable premium taxes) may be paid
under one or more of the following annuity options. Payments under the annuity
options may be elected on a monthly, quarterly, semiannual or annual basis. We
may offer additional options.
Option 1 -- Life Annuity -- No Refund. The Company will make annuity payments
during the lifetime of the annuitant ending with the last payment before death.
This option offers the maximum periodic payment, since there is no assurance of
a minimum number of payments or provision for a death benefit for beneficiaries.
Option 2 -- Life Annuity with 120, 180 or 240 Monthly Payments Assured. The
Company will make monthly annuity payments during the lifetime of the annuitant,
with the agreement that if, at the death of that person, payments have been made
for less than 120, 180 or 240 months as elected, we will continue making
payments to the beneficiary during the remainder of the period.
Option 3 -- Joint and Last Survivor Life Annuity -- No Refund. The Company will
make regular annuity payments during the lifetime of the annuitant and a second
person. When either person dies, we will continue making payments to the
survivor. No further payments will be made following the death of the survivor.
25
<PAGE> 26
Option 4 -- Joint and Last Survivor Life Annuity -- Annuity Reduced on Death of
Primary Payee. The Company will make annuity payments during the lifetimes of
the annuitant and a second person. One will be designated the primary payee, the
other will be designated the secondary payee. On the death of the secondary
payee, the Company will continue to make monthly annuity payments to the primary
payee in the same amount that would have been payable during the joint lifetime
of the two persons. On the death of the primary payee, the Company will continue
to make annuity payments to the secondary payee in an amount equal to 50% of the
payments which would have been made during the lifetime of the primary payee. No
further payments will be made once both payees have died.
Option 5 -- Other Annuity Options. The Company will make any other arrangements
for annuity payments as may be mutually agreed upon.
INCOME OPTIONS
Instead of one of the annuity options described above, and subject to the
conditions described under "Election of Options," all or part of the Contract's
cash surrender value (or, if required by state law, contract value) may be paid
under one or more of the following income options, provided that they are
consistent with federal tax law qualification requirements. Payments under the
income options may be elected on a monthly, quarterly, semiannual or annual
basis:
Option 1 -- Payments of a Fixed Amount. The Company will make equal payments of
the amount elected until the cash surrender value applied under this option has
been exhausted. The first payment and all later payments will be paid from each
funding option or the Fixed Account in proportion to the cash surrender value
attributable to each funding option and/or Fixed Account. The final payment will
include any amount insufficient to make another full payment.
Option 2 -- Payments for a Fixed Period. The Company will make payments for the
period selected. The amount of each payment will be equal to the remaining cash
surrender value applied under this option divided by the number of remaining
payments.
Option 3 -- Other Income Options. The Company will make any other arrangements
for Income Options as may be mutually agreed upon.
MISCELLANEOUS CONTRACT PROVISIONS
- --------------------------------------------------------------------------------
RIGHT TO RETURN PERIOD
You may return the Contract for a full refund of the contract value (including
charges) within twenty days after you receive it (the "right to return period").
You bear the investment risk during the right to return period; therefore, the
contract value returned may be greater or less that your purchase payment. If
the Contract is purchased as an Individual Retirement Annuity and is returned
within the first seven days after delivery, your purchase payment will be
refunded in full; during the remainder of the right to return period, the
contract value (including charges) will be refunded. The contract value will be
determined at the close of business on the day we receive a written request for
a refund.
TERMINATION
You do not need to make any purchase payments after the first to keep the
Contract in effect. However, we reserve the right to terminate the Contract on
any business day if the contract value as of that date is less than $1,000 and
no purchase payments have been made for at least two years, unless otherwise
specified by state law. Termination will not occur until 31 days after the
Company has mailed notice of termination to the contract owner's last known
address and to any
26
<PAGE> 27
assignee of record. If the Contract is terminated, we will pay you the cash
surrender value less any applicable premium tax, outstanding loans and any
applicable administrative charge.
REQUIRED REPORTS
As often as required by law, but at least once in each contract year before the
due date of the first annuity payment, we will furnish a report showing the
number of accumulation units credited to the Contract and the corresponding
accumulation unit value(s) as of the report date for each funding option to
which the contract owner has allocated amounts during the applicable period. The
Company will keep all records required under federal and state laws.
SUSPENSION OF PAYMENTS
The Company reserves the right to suspend or postpone the date of any payment or
determination of values on any business day (1) when the New York Stock Exchange
("the Exchange") is closed; (2) when trading on the Exchange is restricted; (3)
when an emergency exists as determined by the SEC so that the sale of securities
held in the Separate Account may not reasonably occur or so that the Company may
not reasonably determine the value the Separate Account's net assets; or (4)
during any other period when the SEC, by order, so permits for the protection of
security holders.
TRANSFERS OF CONTRACT VALUES TO OTHER ANNUITIES
Where state law permits, we may allow contract owners to transfer their contract
values into other annuities offered by us or our affiliated insurance companies
under rules then in effect.
THE SEPARATE ACCOUNTS
- --------------------------------------------------------------------------------
The Travelers Insurance Company and the Travelers Life and Annuity Company each
sponsor separate accounts: The Travelers Fund BD for Variable Annuities ("Fund
BD") and the Travelers Fund BD II for Variable Annuities ("Fund BD II"),
respectively. Fund BD and Fund BD II were established on October 22, 1993 and
February 22, 1995, respectively and are registered with the SEC as unit
investment trusts (separate account) under the Investment Company Act of 1940,
as amended (the "1940 Act"). The Separate Account assets attributable to the
Contracts will be invested exclusively in the shares of the variable funding
options.
The assets of Fund BD and Fund BD II are held for the exclusive and separate
benefit of the owners of each separate account, according to the laws of
Connecticut. Income, gains and losses, whether or not realized, from assets
allocated to the Separate Account are, in accordance with the Contracts,
credited to or charged against the Separate Account without regard to other
income, gains and losses of the Company. The assets held by the Separate Account
are not chargeable with liabilities arising out of any other business which the
Company may conduct. Obligations under the Contract are obligations of the
Company.
All investment income and other distributions of the funding options are payable
to the Separate Account. All such income and/or distributions are reinvested in
shares of the respective funding option at net asset value. Shares of the
funding options are currently sold only to life insurance company separate
accounts to fund variable annuity and variable life insurance contracts.
PERFORMANCE INFORMATION
From time to time, we may advertise several types of historical performance for
the Contract's funding options. We may advertise the "standardized average
annual total returns" of the funding option, calculated in a manner prescribed
by the SEC, and the "nonstandardized total return," as described below. Specific
examples of the performance information appear in the SAI.
27
<PAGE> 28
STANDARDIZED METHOD. Quotations of average annual total returns are computed
according to a formula in which a hypothetical initial investment of $1,000 is
applied to the funding option, and then related to ending redeemable values over
one-, five-, and ten-year periods, or for a period covering the time during
which the funding option has been in existence, if less. These quotations
reflect the deduction of all recurring charges during each period (on a pro rata
basis in the case of fractional periods). The deduction for the annual contract
administrative charge is converted to a percentage of assets based on the actual
fee collected, divided by the average net assets for Contracts sold. Each
quotation assumes a total redemption at the end of each period with the
applicable withdrawal charge deducted at that time.
NONSTANDARDIZED METHOD. Nonstandardized "total returns" will be calculated in a
similar manner based on the performance of the funding options over a period of
time, usually for the calendar year-to-date, and for the past one-, three-,
five- and ten-year periods. Nonstandardized total returns will not reflect the
deduction of the annual contract administrative charge, which, if reflected,
would decrease the level of performance shown. The withdrawal charge is not
reflected because the Contract is designed for long-term investment.
For funding options that were in existence before they became available under
the Separate Account, the nonstandardized average annual total return quotations
will reflect the investment performance that such funding options would have
achieved (reduced by the applicable charges) had they been held under the
Contract for the period quoted. The total return quotations are based upon
historical earnings and are not necessarily representative of future
performance.
GENERAL. Within the guidelines prescribed by the SEC and the National
Association of Securities Dealers, Inc. ("NASD"), performance information may be
quoted numerically or may be presented in a table, graph or other illustration.
Advertisements may include data comparing performance to well-known indices of
market performance (including, but not limited to, the Dow Jones Industrial
Average, the Standard & Poor's (S&P) 500 Index, the S&P 400 Index, the Lehman
Brothers Long T-Bond Index, the Russell 1000, 2000 and 3000 Indices, the Value
Line Index, and the Morgan Stanley Capital International's EAFE Index).
Advertisements may also include published editorial comments and performance
rankings compiled by independent organizations (including, but not limited to,
Lipper Analytical Services, Inc. and Morningstar, Inc.) and publications that
monitor the performance of the Separate Account and the variable funding
options.
FEDERAL TAX CONSIDERATIONS
- --------------------------------------------------------------------------------
The following general discussion of the federal income tax consequences under
this Contract is not intended to cover all situations, and is not meant to
provide tax advice. Because of the complexity of the law and the fact that the
tax results will vary depending on many factors, you should consult your tax
adviser regarding your personal situation. For your information, a more detailed
tax discussion is contained in the SAI.
GENERAL TAXATION OF ANNUITIES
Congress has recognized the value of saving for retirement by providing certain
tax benefits, in the form of tax deferral, for money put into an annuity. The
Internal Revenue Code (Code) governs how this money is ultimately taxed,
depending upon the type of contract, qualified or non-qualified, and the manner
in which the money is distributed, as briefly described below.
TAX-FREE EXCHANGES: The Internal Revenue Code provides that, generally, no gain
or loss is recognized when an annuity contract is received in exchange for a
life, endowment, or annuity contract. Since different annuity contracts have
different expenses, fees and benefits, a tax-free exchange could result in your
investment becoming subject to higher or lower fees and/or expenses.
28
<PAGE> 29
TYPES OF CONTRACTS: QUALIFIED OR NONQUALIFIED
If you purchase an annuity contract with proceeds of an eligible rollover
distribution from any pension plan, specially sponsored program, or individual
retirement annuity (IRA) with pre-tax dollars, your contract is referred to as a
qualified contract. Some examples of qualified contracts are: IRAs, 403(b)
annuities, pension and profit-sharing plans (including 401(k) plans), Keogh
Plans, and certain other qualified deferred compensation plans. An exception to
this is a qualified plan called a Roth IRA. Under Roth IRAs, after-tax
contributions accumulate until maturity, when amounts (including earnings) may
be withdrawn tax-free. If you purchase the contract on an individual basis with
after-tax dollars and not under one of the programs described above, your
contract is referred to as nonqualified.
NONQUALIFIED ANNUITY CONTRACTS
As the owner of a nonqualified annuity, you do not receive any tax benefit
(deduction or deferral of income) on purchase payments, but you will not be
taxed on increases in the value of your contract until a distribution
occurs -- either as a withdrawal (distribution made prior to the maturity date),
or as annuity payments. When a withdrawal is made, you are taxed on the amount
of the withdrawal that is considered earnings. Similarly, when you receive an
annuity payment, part of each payment is considered a return of your purchase
payments and will not be taxed. The remaining portion of the annuity payment
(i.e., any earnings) will be considered ordinary income for tax purposes.
If a nonqualified annuity is owned by other than an individual, however, (e.g.,
by a corporation), increases in the value of the contract attributable to
purchase payments made after February 28, 1986 are includible in income
annually. Furthermore, for contracts issued after April 22, 1987, if you
transfer the contract without adequate consideration all deferred increases in
value will be includible in your income at the time of the transfer.
If you make a partial withdrawal, this money will generally be taxed as first
coming from earnings, (income in the contract), and then from your purchase
payments. These withdrawn earnings are includible in your income. (See "Penalty
Tax for Premature Distributions" below.) There is income in the contract to the
extent the contract value exceeds your investment in the contract. The
investment in the contract equals the total purchase payments you paid less any
amount received previously which was excludible from gross income. Any direct or
indirect borrowing against the value of the contract or pledging of the contract
as security for a loan will be treated as a cash distribution under the tax law.
Federal tax law requires that nonqualified annuity contracts meet minimum
mandatory distribution requirements upon the death of the contract owner,
including the first of joint owners. If these requirements are not met, the
surviving joint owner, or the beneficiary, will have to pay taxes prior to
distribution. The distribution required depends, among other things, upon
whether an annuity option is elected or whether the new contract owner is the
surviving spouse. We will administer Contracts in accordance with these rules
and we will notify you when you should begin receiving payments.
QUALIFIED ANNUITY CONTRACTS
Under a qualified annuity, since amounts paid into the contract have not yet
been taxed, the full amount of all distributions, including lump-sum withdrawals
and annuity payments, are taxed at the ordinary income tax rate unless the
distribution is transferred to an eligible rollover account or contract. The
Contract is available as a vehicle for IRA rollovers and for other qualified
contracts. There are special rules which govern the taxation of qualified
contracts, including withdrawal restrictions, requirements for mandatory
distributions, and contribution limits. We have provided a more complete
discussion in the SAI.
29
<PAGE> 30
PENALTY TAX FOR PREMATURE DISTRIBUTIONS
Taxable distributions taken before the contract owner has reached the age of
59 1/2 will be subject to a 10% additional tax penalty unless the distribution
is taken in a series of periodic distributions, for life or life expectancy, or
unless the distribution follows the death or disability of the contract owner.
Other exceptions may be available in certain qualified plans.
DIVERSIFICATION REQUIREMENTS FOR VARIABLE ANNUITIES
The Code requires that any nonqualified variable annuity contracts based on a
separate account shall not be treated as an annuity for any period if
investments made in the account are not adequately diversified. Final tax
regulations define how separate accounts must be diversified. The Company
monitors the diversification of investments constantly and believes that its
accounts are adequately diversified. The consequence of any failure to diversify
is essentially the loss to the Contract Owner of tax deferred treatment. The
Company intends to administer all contracts subject to this provision of law in
a manner that will maintain adequate diversification.
OWNERSHIP OF THE INVESTMENTS
Assets in the separate accounts, also referred to as segregated asset accounts,
must be owned by the Company and not by the Contract Owner for federal income
tax purposes. Otherwise, the deferral of taxes is lost and income and gains from
the accounts would be includable annually in the Contract Owner's gross income.
The Internal Revenue Service has stated in published rulings that a variable
contract owner will be considered the owner of the assets of a segregated asset
account if the owner possesses an incident of ownership in those assets, such as
the ability to exercise investment control over the assets. The Treasury
Department announced, in connection with the issuance of temporary regulations
concerning investment diversification, that those regulations "do not provide
guidance concerning the circumstances in which investor control of the
investments of a segregated asset account may cause the investor, rather than
the insurance company, to be treated as the owner of the assets of the account."
This announcement, dated September 15, 1986, also stated that the guidance would
be issued by way of regulations or rulings on the "extent to which policyholders
may direct their investments to particular subaccounts [of a segregated asset
account] without being treated as owners of the underlying assets." As of the
date of this prospectus, no such guidance has been issued.
The Company does not know if such guidance will be issued, or if it is, what
standards it may set. Furthermore, the Company does not know if such guidance
may be issued with retroactive effect. New regulations are generally issued with
a prospective-only effect as to future sales or as to future voluntary
transactions in existing contracts. The Company therefore reserves the right to
modify the contract as necessary to attempt to prevent Contract Owners from
being considered the owner of the assets of the separate account.
MANDATORY DISTRIBUTIONS FOR QUALIFIED PLANS
Federal tax law requires that minimum annual distributions begin by April 1st of
the calendar year following the calendar year in which an IRA owner attains age
70 1/2. Participants in qualified plans and 403(b) annuities may defer minimum
distributions until the later of April 1st of the calendar year following the
calendar year in which they attain age 70 1/2 or the year of retirement.
Distributions must begin or be continued according to required patterns
following the death of the contract owner or annuitant of both qualified and
nonqualified annuities.
TAXATION OF DEATH BENEFIT PROCEEDS
Amounts may be distributed from a Contract because of the death of an owner or
annuitant. Generally, such amounts are includible in the income of the recipient
as follows: (i) if distributed
30
<PAGE> 31
in a lump sum, they are taxed in the same manner as a full surrender of the
contract; or (ii) if distributed under a payment option, they are taxed in the
same way as annuity payments.
OTHER INFORMATION
- --------------------------------------------------------------------------------
THE INSURANCE COMPANIES
Please refer to the first page of the Summary of this prospectus to determine
which company issued your Contract.
The Travelers Insurance Company is a stock insurance company chartered in 1864
in Connecticut and continuously engaged in the insurance business since that
time. It is licensed to conduct life insurance business in all states of the
United States, the District of Columbia, Puerto Rico, Guam, the U.S. and British
Virgin Islands and the Bahamas. The Company is an indirect wholly owned
subsidiary of Citigroup Inc. The Company's Home Office is located at One Tower
Square, Hartford, Connecticut 06183.
The Travelers Life and Annuity Company is a stock insurance company chartered in
1973 in Connecticut and continuously engaged in the insurance business since
that time. It is licensed to conduct life insurance business in a majority of
the states of the United States, the District of Columbia and Puerto Rico, and
intends to seek licensure in the remaining states, except New York. The Company
is an indirect wholly owned subsidiary of Citigroup Inc. The Company's Home
Office is located at One Tower Square, Hartford, Connecticut 06183.
FINANCIAL STATEMENTS
The financial statements for each insurance company and for each separate
account are located in their respective Statements of Additional Information.
IMSA
The Companies are members of the Insurance Marketplace Standards Association
("IMSA"), and as such may use the IMSA logo and IMSA membership in
advertisements. Companies that belong to IMSA subscribe to a set of ethical
standards covering the various aspects of sales and service for individually
sold life insurance and annuities. IMSA members have adopted policies and
procedures that demonstrate a commitment to honesty, fairness and integrity in
all customer contacts involving the sale and service of individual life
insurance and annuity products.
DISTRIBUTION OF VARIABLE ANNUITY CONTRACTS
The Company intends to sell the Contracts in all jurisdictions where it is
licensed to do business and where the Contract is approved. Any sales
representative or employee who sells the Contracts will be qualified to sell
variable annuities under applicable federal and state laws. Each broker-dealer
is registered with the SEC under the Securities Exchange Act of 1934, and all
are members of the NASD. The principal underwriter of the Contracts is CFBDS,
Inc., 21 Milk St., Boston, MA. CFBDS, Inc. is not affiliated with the Company or
the Separate Account. However, it is currently anticipated that Travelers
Distribution LLC, an affiliated broker-dealer, may become the principal
underwriter for the Contracts during the year 2000.
Up-front compensation paid to sales representatives will not exceed 7% of the
purchase payments made under the Contracts. If asset based compensation is paid,
it will not exceed 2% of the average account value annually. From time to time,
the Company may pay or permit other promotional incentives, in cash, credit or
other compensation.
31
<PAGE> 32
CONFORMITY WITH STATE AND FEDERAL LAWS
The Contract is governed by the laws of the state in which it is delivered.
Where a state has not approved a contract feature or funding option, it will not
be available in that state. Any paid-up annuity, cash surrender value or death
benefits that are available under the Contract are not less than the minimum
benefits required by the statutes of the state in which the Contract is
delivered. We reserve the right to make any changes, including retroactive
changes, in the Contract to the extent that the change is required to meet the
requirements of any law or regulation issued by any governmental agency to which
the Company, the Contract or the contract owner is subject.
VOTING RIGHTS
The Company is the legal owner of the shares of the funding options. However, we
believe that when a funding option solicits proxies in conjunction with a vote
of shareholders we are required to obtain from you and from other owners
instructions on how to vote those shares. When we receive those instructions, we
will vote all of the shares we own in proportion to those instructions. This
will also include any shares we own on our own behalf. Should we determine that
we are no longer required to comply with the above, we will vote on the shares
in our own right.
LEGAL PROCEEDINGS AND OPINIONS
Legal matters in connection with the federal laws and regulations affecting the
issue and sale of the contract described in this prospectus, as well as the
organization of the Companies, their authority to issue variable annuity
contracts under Connecticut law and the validity of the forms of the variable
annuity contracts under Connecticut law, have been passed on by the General
Counsel of the Companies.
There are no pending legal proceedings affecting the Separate Account. There is
one material pending legal proceeding, other than ordinary routine litigation
incidental to business, to which the Company is a party.
THE TRAVELERS INSURANCE COMPANY
In March 1997, a purported class action entitled Patterman v. The Travelers,
Inc., et al. was commenced in the Superior Court of Richmond County, Georgia,
alleging, among other things, violations of the Georgia RICO statute and other
state laws by an affiliate of the Company, Primerica Financial Services, Inc.
and certain of its affiliates. Plaintiffs seek unspecified compensatory and
punitive damages and other relief. In October 1997, defendants answered the
complaint, denied liability and asserted numerous affirmative defenses. In
February 1998, on defendants' motion, the Superior Court of Richmond County
transferred the lawsuit to the Superior Court of Gwinnett County, Georgia.
Plaintiffs appealed the transfer order, and in December 1998 the Court of
Appeals of the State of Georgia reversed the lower court's decision. Defendants
petitioned the Georgia Supreme Court to hear an appeal from the decision of the
Court of Appeals, and the petition was granted in May 1998. In September 1999,
oral argument on defendants' petition was heard and, on February 28, 2000, the
Georgia Supreme Court affirmed the Georgia County Appeals and remanded the
matter to the Superior Court of Richmond County. In March 2000, defendants moved
the Georgia Supreme Court to reconsider its February 28, 2000 decision, and that
motion remains pending. Proceedings in the trial court have been stayed pending
appeal. Defendants intend to vigorously contest the litigation.
THE TRAVELERS LIFE AND ANNUITY COMPANY
There are no pending material legal proceedings affecting the Separate Account,
the principal underwriter or the Company.
32
<PAGE> 33
APPENDIX A
- --------------------------------------------------------------------------------
CONDENSED FINANCIAL INFORMATION
THE TRAVELERS FUND BD FOR VARIABLE ANNUITIES
ACCUMULATION UNIT VALUES
<TABLE>
<CAPTION>
YEAR ENDED YEAR ENDED YEAR ENDED
DECEMBER 31, 1999 DECEMBER 31, 1998 DECEMBER 31, 1997
STANDARD ENHANCED STANDARD ENHANCED STANDARD ENHANCED
- ----------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
DREYFUS VARIABLE INVESTMENT FUND
SMALL CAP PORTFOLIO (5/98)
Unit Value at beginning of period....... $ .852 $ .851 $ 1.000 $ 1.000 $ -- $ --
Unit Value at end of period............. 1.038 1.033 .852 .851 -- --
Number of units outstanding at end of
period (thousands).................... 2,130 302 1,025 49 -- --
GREENWICH STREET SERIES FUND:
TOTAL RETURN PORTFOLIO (11/94)*
Unit Value at beginning of period....... $ 1.857 $ 1.836 $ 1.790 $ 1.775 $ 1.550 $ 1.541
Unit Value at end of period............. 2.240 2.208 1.857 1.836 1.790 1.775
Number of units outstanding at end of
period (thousands).................... 65,203 10,465 73,468 11,654 75,812 11,853
EQUITY INDEX PORTFOLIO--CLASS II (5/99)*
Unit Value at beginning of period....... $ 1.000 $ 1.000 $ -- $ -- $ -- $ --
Unit Value at end of period............. 1.088 1.086 -- -- -- --
Number of units outstanding at end of
period (thousands).................... 1,740 78 -- -- -- --
SALOMON BROTHERS VARIABLE SERIES FUND
INVESTORS FUND (5/98)*
Unit Value at beginning of period....... $ 1.014 $ 1.012 $ 1.000 $ 1.000 $ -- $ --
Unit Value at end of period............. 1.119 1.114 1.014 1.012 -- --
Number of units outstanding at end of
period (thousands).................... 1,846 171 704 76 -- --
TOTAL RETURN FUND (5/98)*
Unit Value at beginning of period....... $ .997 $ .996 $ 1.000 $ 1.000 $ -- $ --
Unit Value at end of period............. .994 .989 .997 .996 -- --
Number of units outstanding at end of
period (thousands).................... 769 116 397 70 -- --
SMITH BARNEY CONCERT ALLOCATION SERIES
INC.:
SELECT HIGH GROWTH PORTFOLIO** (3/97)*
Unit Value at beginning of period....... $ 1.242 $ 1.236 $ 1.090 $ 1.087 $ 1.000 $ 1.000
Unit Value at end of period............. 1.558 1.546 1.242 1.236 1.090 1.087
Number of units outstanding at end of
period (thousands).................... 807 319 724 326 603 231
<CAPTION>
PERIOD FROM
JUNE 2, 1994
YEAR ENDED YEAR ENDED (EFFECTIVE DATE) TO
DECEMBER 31, 1996 DECEMBER 31, 1995 DECEMBER 31, 1994
STANDARD ENHANCED STANDARD ENHANCED STANDARD ENHANCED
- ----------------------------------------- ---------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
DREYFUS VARIABLE INVESTMENT FUND
SMALL CAP PORTFOLIO (5/98)
Unit Value at beginning of period....... $ -- $ -- $ -- $ -- $ -- $ --
Unit Value at end of period............. -- -- -- -- -- --
Number of units outstanding at end of
period (thousands).................... -- -- -- -- -- --
GREENWICH STREET SERIES FUND:
TOTAL RETURN PORTFOLIO (11/94)*
Unit Value at beginning of period....... $ 1.251 $ 1.247 $ 1.010 $ 1.010 $ 1.000 $1.000
Unit Value at end of period............. 1.550 1.541 1.251 1.247 1.010 1.010
Number of units outstanding at end of
period (thousands).................... 58,898 9,169 32,564 4,874 1,109 277
EQUITY INDEX PORTFOLIO--CLASS II (5/99)*
Unit Value at beginning of period....... $ -- $ -- $ -- $ -- $ -- $ --
Unit Value at end of period............. -- -- -- -- -- --
Number of units outstanding at end of
period (thousands).................... -- -- -- -- -- --
SALOMON BROTHERS VARIABLE SERIES FUND
INVESTORS FUND (5/98)*
Unit Value at beginning of period....... $ -- $ -- $ -- $ -- $ -- $ --
Unit Value at end of period............. -- -- -- -- -- --
Number of units outstanding at end of
period (thousands).................... -- -- -- -- -- --
TOTAL RETURN FUND (5/98)*
Unit Value at beginning of period....... $ -- $ -- $ -- $ -- $ -- $ --
Unit Value at end of period............. -- -- -- -- -- --
Number of units outstanding at end of
period (thousands).................... -- -- -- -- -- --
SMITH BARNEY CONCERT ALLOCATION SERIES
INC.:
SELECT HIGH GROWTH PORTFOLIO** (3/97)*
Unit Value at beginning of period....... $ -- $ -- $ -- $ -- $ -- $ --
Unit Value at end of period............. -- -- -- -- -- --
Number of units outstanding at end of
period (thousands).................... -- -- -- -- -- --
</TABLE>
A-1
<PAGE> 34
APPENDIX A
- --------------------------------------------------------------------------------
CONDENSED FINANCIAL INFORMATION
THE TRAVELERS FUND BD FOR VARIABLE ANNUITIES
ACCUMULATION UNIT VALUES (CONTINUED)
<TABLE>
<CAPTION>
YEAR ENDED YEAR ENDED YEAR ENDED
DECEMBER 31, 1999 DECEMBER 31, 1998 DECEMBER 31, 1997
STANDARD ENHANCED STANDARD ENHANCED STANDARD ENHANCED
- ----------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
SELECT GROWTH PORTFOLIO (3/97)*
Unit Value at beginning of period....... $ 1.238 $ 1.232 $ 1.099 $ 1.097 $ 1.000 $ 1.000
Unit Value at end of period............. 1.421 1.410 1.238 1.232 1.099 1.097
Number of units outstanding at end of
period (thousands).................... 3,487 1,847 3,135 1,839 2,262 1,403
SELECT BALANCED PORTFOLIO (3/97)*
Unit Value at beginning of period....... $ 1.183 $ 1.177 $ 1.093 $ 1.091 $ 1.000 $ 1.000
Unit Value at end of period............. 1.258 1.248 1.183 1.177 1.093 1.091
Number of units outstanding at end of
period (thousands).................... 3,959 922 4,047 1,087 3,115 778
SELECT CONSERVATIVE PORTFOLIO** (3/97)*
Unit Value at beginning of period....... $ 1.162 $ 1.156 $ 1.108 $ 1.105 $ 1.000 $ 1.000
Unit Value at end of period............. 1.196 1.187 1.162 1.156 1.108 1.105
Number of units outstanding at end of
period (thousands).................... 1,408 137 1,466 184 640 188
SELECT INCOME PORTFOLIO** (3/97)*
Unit Value at beginning of period....... $ 1.154 $ 1.148 $ 1.106 $ 1.104 $ 1.000 $ 1.000
Unit Value at end of period............. 1.148 1.139 1.154 1.148 1.106 1.104
Number of units outstanding at end of
period (thousands).................... 831 165 753 185 425 279
TRAVELERS SERIES FUND INC.
AIM CAPITAL APPRECIATION PORTFOLIO
(11/95)*
Unit Value at beginning of period....... $ 1.397 $ 1.385 $ 1.206 $ 1.198 $ 1.088 $ 1.084
Unit Value at end of period............. 1.974 1.951 1.397 1.385 1.206 1.198
Number of units outstanding at end of
period (thousands).................... 81,401 14,475 90,905 15,792 91,234 15,591
ALLIANCE GROWTH PORTFOLIO (6/94)*
Unit Value at beginning of period....... $ 2.903 $ 2.867 $ 2.276 $ 2.254 $ 1.785 $ 1.772
Unit Value at end of period............. 3.795 3.737 2.903 2.867 2.276 2.254
Number of units outstanding at end of
period (thousands).................... 131,228 26,576 142,802 28,710 144,293 30,063
<CAPTION>
PERIOD FROM
JUNE 2, 1994
YEAR ENDED YEAR ENDED (EFFECTIVE DATE) TO
DECEMBER 31, 1996 DECEMBER 31, 1995 DECEMBER 31, 1994
STANDARD ENHANCED STANDARD ENHANCED STANDARD ENHANCED
- ----------------------------------------- ---------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
SELECT GROWTH PORTFOLIO (3/97)*
Unit Value at beginning of period....... $ -- $ -- $ -- $ -- $ -- $ --
Unit Value at end of period............. -- -- -- -- -- --
Number of units outstanding at end of
period (thousands).................... -- -- -- -- -- --
SELECT BALANCED PORTFOLIO (3/97)*
Unit Value at beginning of period....... $ -- $ -- $ -- $ -- $ -- $ --
Unit Value at end of period............. -- -- -- -- -- --
Number of units outstanding at end of
period (thousands).................... -- -- -- -- -- --
SELECT CONSERVATIVE PORTFOLIO** (3/97)*
Unit Value at beginning of period....... $ -- $ -- $ -- $ -- $ -- $ --
Unit Value at end of period............. -- -- -- -- -- --
Number of units outstanding at end of
period (thousands).................... -- -- -- -- -- --
SELECT INCOME PORTFOLIO** (3/97)*
Unit Value at beginning of period....... $ -- $ -- $ -- $ -- $ -- $ --
Unit Value at end of period............. -- -- -- -- -- --
Number of units outstanding at end of
period (thousands).................... -- -- -- -- -- --
TRAVELERS SERIES FUND INC.
AIM CAPITAL APPRECIATION PORTFOLIO
(11/95)*
Unit Value at beginning of period....... $ 0.958 $ 0.957 $ 1.000 $ 1.000 $ -- $ --
Unit Value at end of period............. 1.088 1.084 0.958 0.957 -- --
Number of units outstanding at end of
period (thousands).................... 71,085 12,862 20,366 5,394 -- --
ALLIANCE GROWTH PORTFOLIO (6/94)*
Unit Value at beginning of period....... $ 1.396 $ 1.390 $ 1.047 $ 1.046 $ 1.000 $1.000
Unit Value at end of period............. 1.785 1.772 1.396 1.390 1,047 1,046
Number of units outstanding at end of
period (thousands).................... 123,294 27,251 79,334 20,571 16,522 7,338
</TABLE>
A-2
<PAGE> 35
APPENDIX A
- --------------------------------------------------------------------------------
CONDENSED FINANCIAL INFORMATION
THE TRAVELERS FUND BD FOR VARIABLE ANNUITIES
ACCUMULATION UNIT VALUES (CONTINUED)
<TABLE>
<CAPTION>
YEAR ENDED YEAR ENDED YEAR ENDED
DECEMBER 31, 1999 DECEMBER 31, 1998 DECEMBER 31, 1997
STANDARD ENHANCED STANDARD ENHANCED STANDARD ENHANCED
- ----------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
INVESCO STRATEGIC INCOME PORTFOLIO
(FORMERLY G.T. GLOBAL STRATEGIC
PORTFOLIO) (6/94)*
Unit Value at beginning of period....... $ 1.359 $ 1.342 $ 1.397 $ 1.383 $ 1.316 $ 1.306
Unit Value at end of period............. 1.319 1.299 1.359 1.342 1.397 1.383
Number of units outstanding at end of
period (thousands).................... 8,991 2,351 11,299 2,624 12,827 2,883
MFS TOTAL RETURN PORTFOLIO (6/94)*
Unit Value at beginning of period....... $ 1.819 $ 1.796 $ 1.648 $ 1.632 $ 1.376 $ 1.366
Unit Value at end of period............. 1.845 1.817 1.819 1.796 1.648 1.632
Number of units outstanding at end of
period (thousands).................... 78,484 16,860 86,950 18,459 83,811 17,373
PUTNAM DIVERSIFIED INCOME PORTFOLIO
(6/94)*
Unit Value at beginning of period....... $ 1.326 $ 1.309 $ 1.332 $ 1.319 $ 1.252 $ 1.243
Unit Value at end of period............. 1.325 1.304 1.326 1.309 1.332 1.319
Number of units outstanding at end of
period (thousands).................... 45,595 11,060 53,053 12,925 51,751 12,724
SMITH BARNEY HIGH INCOME PORTFOLIO
(6/94)*
Unit Value at beginning of period....... $ 1.452 $ 1.434 $ 1.463 $ 1.448 $ 1.300 $ 1.291
Unit Value at end of period............. 1.472 1.450 1.452 1.434 1.463 1.448
Number of units outstanding at end of
period (thousands).................... 38,357 8,210 44,406 9,312 42,964 8,927
SMITH BARNEY INTERNATIONAL EQUITY
PORTFOLIO (6/94)*
Unit Value at beginning of period....... $ 1.305 $ 1.289 $ 1.240 $ 1.228 $ 1.222 $ 1.213
Unit Value at end of period............. 2.164 2.131 1.305 1.289 1.240 1.228
Number of units outstanding at end of
period (thousands).................... 72,748 15,530 82,330 17,670 87,385 18,731
SMITH BARNEY LARGE CAPITALIZATION GROWTH
PORTFOLIO (5/98)*
Unit Value at beginning of period....... $ 1.237 $ 1.234 $ 1.000 $ 1.000 $ -- $ --
Unit Value at end of period............. 1.599 1.592 1.237 1.234 -- --
Number of units outstanding at end of
period (thousands).................... 25,852 3,416 12,224 1,022 -- --
<CAPTION>
PERIOD FROM
JUNE 2, 1994
YEAR ENDED YEAR ENDED (EFFECTIVE DATE) TO
DECEMBER 31, 1996 DECEMBER 31, 1995 DECEMBER 31, 1994
STANDARD ENHANCED STANDARD ENHANCED STANDARD ENHANCED
- ----------------------------------------- ---------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
INVESCO STRATEGIC INCOME PORTFOLIO
(FORMERLY G.T. GLOBAL STRATEGIC
PORTFOLIO) (6/94)*
Unit Value at beginning of period....... $ 1.121 $ 1.116 $ 0.945 0.944 $ 1.000 $1.000
Unit Value at end of period............. 1.316 1.306 1.121 1.116 0.945 0.944
Number of units outstanding at end of
period (thousands).................... 11,505 2,795 6,840 2,180 2,400 1,063
MFS TOTAL RETURN PORTFOLIO (6/94)*
Unit Value at beginning of period....... $ 1.216 $ 1.211 $ 0.979 $ 0.977 $ 1.000 $1.000
Unit Value at end of period............. 1.376 1.366 1.216 1.211 0.979 0.977
Number of units outstanding at end of
period (thousands).................... 68,236 14,690 41,813 9,473 9,099 3,479
PUTNAM DIVERSIFIED INCOME PORTFOLIO
(6/94)*
Unit Value at beginning of period....... $ 1.170 $ 1.165 $ 1.009 $ 1.007 $ 1.000 $1.000
Unit Value at end of period............. 1.252 1.243 1.170 1.165 1.009 1.007
Number of units outstanding at end of
period (thousands).................... 43,898 11,789 26,078 8,650 5,803 3,683
SMITH BARNEY HIGH INCOME PORTFOLIO
(6/94)*
Unit Value at beginning of period....... $ 1.162 $ 1.157 $ 0.988 $ 0.986 $ 1.000 $1.000
Unit Value at end of period............. 1.300 1.291 1.162 1.157 0.988 0.986
Number of units outstanding at end of
period (thousands).................... 33,737 6,932 20,136 3,772 3,105 1,162
SMITH BARNEY INTERNATIONAL EQUITY
PORTFOLIO (6/94)*
Unit Value at beginning of period....... $ 1.050 $ 1.046 $ 0.955 $ 0.954 $ 1.000 $1.000
Unit Value at end of period............. 1.222 1.213 1.050 1.046 0.955 0.954
Number of units outstanding at end of
period (thousands).................... 77,554 16,662 47,317 12,187 14,141 5,898
SMITH BARNEY LARGE CAPITALIZATION GROWTH
PORTFOLIO (5/98)*
Unit Value at beginning of period....... $ -- $ -- $ -- $ -- $ -- $ --
Unit Value at end of period............. -- -- -- -- -- --
Number of units outstanding at end of
period (thousands).................... -- -- -- -- -- --
</TABLE>
A-3
<PAGE> 36
APPENDIX A
- --------------------------------------------------------------------------------
CONDENSED FINANCIAL INFORMATION
THE TRAVELERS FUND BD FOR VARIABLE ANNUITIES
ACCUMULATION UNIT VALUES (CONTINUED)
<TABLE>
<CAPTION>
YEAR ENDED YEAR ENDED YEAR ENDED
DECEMBER 31, 1999 DECEMBER 31, 1998 DECEMBER 31, 1997
STANDARD ENHANCED STANDARD ENHANCED STANDARD ENHANCED
- ----------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
SMITH BARNEY LARGE CAP VALUE
PORTFOLIO(6/94)*
Unit Value at beginning of period....... $ 2.076 $ 2.050 $ 1.913 $ 1.894 $ 1.528 $ 1.517
Unit Value at end of period............. 2.053 2.022 2.076 2.050 1.913 1.894
Number of units outstanding at end of
period (thousands).................... 67,688 13,629 71,417 14,891 71,149 15,383
SMITH BARNEY MONEY MARKET PORTFOLIO
(6/94)*
Unit Value at beginning of period....... $ 1.184 1.169 $ 1.140 $ 1.129 $ 1.098 $ 1.090
Unit Value at end of period............. 1.226 1.207 1.184 1.169 1.140 1.129
Number of units outstanding at end of
period (thousands).................... 45,053 6,609 47,121 8,254 38,097 8,610
SMITH BARNEY PACIFIC BASIN PORTFOLIO
(6/94)*
Unit Value at beginning of period....... $ 0.742 $ 0.733 $ 0.700 $ 0.693 $ 0.983 $ 0.977
Unit Value at end of period............. 1.435 1.413 0.742 0.733 0.700 0.693
Number of units outstanding at end of
period (thousands).................... 8,994 2,507 8,930 2,803 10,584 3,223
TRAVELERS MANAGED INCOME PORTFOLIO
(6/94)*
Unit Value at beginning of period....... $ 1.309 $ 1.293 $ 1.261 $ 1.248 $ 1.163 $ 1.154
Unit Value at end of period............. 1.306 1.286 1.309 1.293 1.261 1.248
Number of units outstanding at end of
period (thousands).................... 17,251 4,234 20,492 3,895 17,887 3,091
VAN KAMPEN ENTERPRISE PORTFOLIO (6/94)*
Unit Value at beginning of period....... $ 2.601 $ 2.568 $ 2.103 $ 2.083 $ 1.655 $ 1.643
Unit Value at end of period............. 3.238 3.188 2.601 2.568 2.103 2.083
Number of units outstanding at end of
period (thousands).................... 50,446 11,752 55,903 12,561 55,871 13,032
THE TRAVELERS SERIES TRUST:
CONVERTIBLE BOND PORTFOLIO (5/98)*
Unit Value at beginning of period....... $ 1.001 $ 0.999 $ 1.000 $ 1.000 $ -- $ --
Unit Value at end of period............. 1.175 1.169 1.001 0.999 -- --
Number of units outstanding at end of
period (thousands).................... 627 181 249 24 -- --
<CAPTION>
PERIOD FROM
JUNE 2, 1994
YEAR ENDED YEAR ENDED (EFFECTIVE DATE) TO
DECEMBER 31, 1996 DECEMBER 31, 1995 DECEMBER 31, 1994
STANDARD ENHANCED STANDARD ENHANCED STANDARD ENHANCED
- ----------------------------------------- ---------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
SMITH BARNEY LARGE CAP VALUE
PORTFOLIO(6/94)*
Unit Value at beginning of period....... $ 1.291 $ 1.285 $ 0.981 $ 0.980 $ 1.000 $1.000
Unit Value at end of period............. 1.528 1.517 1.291 1.285 0.981 0.980
Number of units outstanding at end of
period (thousands).................... 57,479 12,170 31,343 7,140 6,654 3,015
SMITH BARNEY MONEY MARKET PORTFOLIO
(6/94)*
Unit Value at beginning of period....... $ 1.058 $ 1.054 $ 1.016 $ 1.014 $ 1.000 $1.000
Unit Value at end of period............. 1.098 1.090 1.058 1.054 1.016 1.014
Number of units outstanding at end of
period (thousands).................... 49,672 10,176 36,637 9,063 7,171 3,748
SMITH BARNEY PACIFIC BASIN PORTFOLIO
(6/94)*
Unit Value at beginning of period....... $ 0.910 $ 0.906 $ 0.899 $ 0.898 $ 1.000 $1.000
Unit Value at end of period............. 0.983 0.977 0.910 0.906 0.899 0.898
Number of units outstanding at end of
period (thousands).................... 10,513 3,487 6,024 2,351 1,657 878
TRAVELERS MANAGED INCOME PORTFOLIO
(6/94)*
Unit Value at beginning of period....... $ 1.142 $ 1.137 $ 0.997 $ 0.995 $ 1.000 $1.000
Unit Value at end of period............. 1.163 1.154 1.142 1.137 0.997 0.995
Number of units outstanding at end of
period (thousands).................... 15,376 2,502 11,294 1,783 2,849 980
VAN KAMPEN ENTERPRISE PORTFOLIO (6/94)*
Unit Value at beginning of period....... $ 1.362 $ 1.356 $ 1.039 $ 1.037 $ 1.000 $1.000
Unit Value at end of period............. 1.655 1.643 1.362 1.356 1,039 1,037
Number of units outstanding at end of
period (thousands).................... 45,338 10,652 26,473 6,569 2,941 1,618
THE TRAVELERS SERIES TRUST:
CONVERTIBLE BOND PORTFOLIO (5/98)*
Unit Value at beginning of period....... $ -- $ -- $ -- $ -- $ -- $ --
Unit Value at end of period............. -- -- -- -- -- --
Number of units outstanding at end of
period (thousands).................... -- -- -- -- -- --
</TABLE>
A-4
<PAGE> 37
APPENDIX A
- --------------------------------------------------------------------------------
CONDENSED FINANCIAL INFORMATION
THE TRAVELERS FUND BD FOR VARIABLE ANNUITIES
ACCUMULATION UNIT VALUES (CONTINUED)
<TABLE>
<CAPTION>
YEAR ENDED YEAR ENDED YEAR ENDED
DECEMBER 31, 1999 DECEMBER 31, 1998 DECEMBER 31, 1997
STANDARD ENHANCED STANDARD ENHANCED STANDARD ENHANCED
- ----------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
DISCIPLINED MID CAP STOCK PORTFOLIO
(5/98)*
Unit Value at beginning of period....... $ 1.064 $ 1.063 $ 1.000 $ 1.000 $ -- $ --
Unit Value at end of period............. 1.194 1.188 1.064 1.063 -- --
Number of units outstanding at end of
period (thousands).................... 1,843 330 398 54 -- --
DISCIPLINED SMALL CAP STOCK PORTFOLIO
(5/98)*
Unit Value at beginning of period....... $ 0.896 $ 0.894 $ 1.000 $ 1.000 $ -- $ --
Unit Value at end of period............. 1.066 1.061 0.896 0.894 -- --
Number of units outstanding at end of
period (thousands).................... 810 68 299 4 -- --
MFS EMERGING GROWTH PORTFOLIO (11/96)*
Unit Value at beginning of period....... $ 1.599 $ 1.589 $ 1.204 $ 1.200 $ 1.005 $ 1.005
Unit Value at end of period............. 2.793 2.769 1.599 1,589 1.204 1.200
Number of units outstanding at end of
period (thousands).................... 28,193 6,685 25,200 6,079 19,166 4,600
MFS RESEARCH PORTFOLIO (5/98)*
Unit Value at beginning of period....... $ 1.037 $ 1.035 $ 1.000 $ 1.000 $ -- $ --
Unit Value at end of period............. 1.267 1.261 1.037 1.035 -- --
Number of units outstanding at end of
period (thousands).................... 3,898 1,160 1,354 1,039 -- --
STRATEGIC STOCK PORTFOLIO (5/98)*
Unit Value at beginning of period....... $ 0.936 $ 0.934 $ 1.000 $ 1.000 $ -- $ --
Unit Value at end of period............. 0.971 0.966 0.936 0.934 -- --
Number of units outstanding at end of
period (thousands).................... 751 180 540 121 -- --
<CAPTION>
PERIOD FROM
JUNE 2, 1994
YEAR ENDED YEAR ENDED (EFFECTIVE DATE) TO
DECEMBER 31, 1996 DECEMBER 31, 1995 DECEMBER 31, 1994
STANDARD ENHANCED STANDARD ENHANCED STANDARD ENHANCED
- ----------------------------------------- ---------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
DISCIPLINED MID CAP STOCK PORTFOLIO
(5/98)*
Unit Value at beginning of period....... $ -- $ -- $ -- $ -- $ -- $ --
Unit Value at end of period............. -- -- -- -- -- --
Number of units outstanding at end of
period (thousands).................... -- -- -- -- -- --
DISCIPLINED SMALL CAP STOCK PORTFOLIO
(5/98)*
Unit Value at beginning of period....... $ -- $ -- $ -- $ -- $ -- $ --
Unit Value at end of period............. -- -- -- -- -- --
Number of units outstanding at end of
period (thousands).................... -- -- -- -- -- --
MFS EMERGING GROWTH PORTFOLIO (11/96)*
Unit Value at beginning of period....... $ 1.000 $ 1.000 $ -- $ -- $ -- $ --
Unit Value at end of period............. 1.500 1.005 -- -- -- --
Number of units outstanding at end of
period (thousands).................... 4,790 780 -- -- -- --
MFS RESEARCH PORTFOLIO (5/98)*
Unit Value at beginning of period....... $ -- $ -- $ -- $ -- $ -- $ --
Unit Value at end of period............. -- -- -- -- -- --
Number of units outstanding at end of
period (thousands).................... -- -- -- -- -- --
STRATEGIC STOCK PORTFOLIO (5/98)*
Unit Value at beginning of period....... $ -- $ -- $ -- $ -- $ -- $ --
Unit Value at end of period............. -- -- -- -- -- --
Number of units outstanding at end of
period (thousands).................... -- -- -- -- -- --
</TABLE>
* Reflects date money was first applied to the funding option through the
Separate Account. Condensed Financial Information is shown as of this date.
** Not available to new contract owners after May 1, 1998 in most states.
The financial statements of Fund BD and the financial statements of The
Travelers Insurance Company are contained in the SAI.
Funding options not listed above were not yet available through the Separate
Account as of December 31, 1999.
"Number of Units outstanding at end of period" may include units for contract
owners in the payout phase.
A-5
<PAGE> 38
THIS PAGE INTENTIONALLY LEFT BLANK.
<PAGE> 39
APPENDIX B
- --------------------------------------------------------------------------------
CONDENSED FINANCIAL INFORMATION
THE TRAVELERS FUND BD II FOR VARIABLE ANNUITIES
ACCUMULATION UNIT VALUES
<TABLE>
<CAPTION>
YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED
DECEMBER 31, 1999 DECEMBER 31, 1998 DECEMBER 31, 1997 DECEMBER 31, 1996
STANDARD ENHANCED STANDARD ENHANCED STANDARD ENHANCED STANDARD ENHANCED
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
DREYFUS VARIABLE INVESTMENT FUND
SMALL CAP PORTFOLIO (5/98)
Unit Value at beginning of
period.......................... $ 0.852 $ 0.851 $ 1.000 $ 1.000 -- -- -- --
Unit Value at end of period....... 1.038 1.033 0.852 0.851 -- -- -- --
Number of units outstanding at end
of period (thousands)........... 4,918 450 1,713 252 -- -- -- --
GREENWICH STREET SERIES FUND:
TOTAL RETURN PORTFOLIO (11/95)*
Unit Value at beginning of
period.......................... $ 1.857 $ 1.836 $ 1.790 $ 1.775 $ 1.550 $ 1.541 $ 1.251 $ 1.247
Unit Value at end of period....... 2.240 2.208 1.857 1.836 1.790 1.775 1.550 1.541
Number of units outstanding at end
of period (thousands)........... 42,818 8,588 42,830 9,425 33,686 5,975 14,921 2,044
EQUITY INDEX PORTFOLIO-CLASS II
(5/99)
Unit Value at beginning of
period.......................... $ 1.000 $ 1.000 $ -- $ -- $ -- $ -- $ -- $ --
Unit Value at end of period....... 1.088 1.086 -- -- -- -- -- --
Number of units outstanding at end
of period (thousands)........... 4,475 157 -- -- -- -- -- --
SALOMON BROTHERS VARIABLE SERIES
FUNDS, INC.
INVESTORS FUND (5/98)*
Unit Value at beginning of
period.......................... $ 1.014 $ 1.012 $ 1.000 $ 1.000 -- -- -- --
Unit Value at end of period....... 1.119 1.114 1.014 1.012 -- -- -- --
Number of units outstanding at end
of period (thousands)........... 2,903 529 1,024 199 -- -- -- --
TOTAL RETURN FUND (5/98)*
Unit Value at beginning of
period.......................... $ 0.997 $ 0.996 $ 1.000 $ 1.000 -- -- -- --
Unit Value at end of period....... 0.994 0.989 0.997 0.996 -- -- -- --
Number of units outstanding at end
of period (thousands)........... 1,620 208 761 128 -- -- -- --
SMITH BARNEY CONCERT ALLOCATION
SERIES INC.:
SELECT HIGH GROWTH PORTFOLIO**
(3/97)*
Unit Value at beginning of
period.......................... $ 1.242 $ 1.236 $ 1.090 $ 1.087 $ 1.000 $ 1.000 $ -- $ --
Unit Value at end of period....... 1.558 1.546 1.242 1.236 1.090 1.087 -- --
Number of units outstanding at end
of period (thousands)........... 2,931 447 3,435 622 2,657 391 -- --
SELECT GROWTH PORTFOLIO (3/97)*
Unit Value at beginning of
period.......................... $ 1.238 $ 1.232 $ 1.099 $ 1.097 $ 1.000 $ 1.000 $ -- $ --
Unit Value at end of period....... 1.421 1.410 1.238 1.232 1.099 1.097 -- --
Number of units outstanding at end
of period (thousands)........... 5,037 2,157 5,356 2,329 3,396 1,191 -- --
SELECT BALANCED PORTFOLIO (3/97)*
Unit Value at beginning of
period.......................... $ 1.183 $ 1.177 $ 1.093 $ 1.091 $ 1.000 $ 1.000 $ -- $ --
Unit Value at end of period....... 1.258 1.248 1.183 1.177 1.093 1.091 -- --
Number of units outstanding at end
of period (thousands)........... 8,078 2,375 7,216 2,594 4,148 1,789 -- --
<CAPTION>
PERIOD FROM
11/8/95
(EFFECTIVE DATE) TO
DECEMBER 31, 1995
STANDARD ENHANCED
- ----------------------------------- -------------------
<S> <C> <C>
DREYFUS VARIABLE INVESTMENT FUND
SMALL CAP PORTFOLIO (5/98)
Unit Value at beginning of
period.......................... -- --
Unit Value at end of period....... -- --
Number of units outstanding at end
of period (thousands)........... -- --
GREENWICH STREET SERIES FUND:
TOTAL RETURN PORTFOLIO (11/95)*
Unit Value at beginning of
period.......................... $ 1.010 $ 1.010
Unit Value at end of period....... 1.251 1.247
Number of units outstanding at end
of period (thousands)........... 651 149
EQUITY INDEX PORTFOLIO-CLASS II
(5/99)
Unit Value at beginning of
period.......................... $ -- $ --
Unit Value at end of period....... -- --
Number of units outstanding at end
of period (thousands)........... -- --
SALOMON BROTHERS VARIABLE SERIES
FUNDS, INC.
INVESTORS FUND (5/98)*
Unit Value at beginning of
period.......................... -- --
Unit Value at end of period....... -- --
Number of units outstanding at end
of period (thousands)........... -- --
TOTAL RETURN FUND (5/98)*
Unit Value at beginning of
period.......................... -- --
Unit Value at end of period....... -- --
Number of units outstanding at end
of period (thousands)........... -- --
SMITH BARNEY CONCERT ALLOCATION
SERIES INC.:
SELECT HIGH GROWTH PORTFOLIO**
(3/97)*
Unit Value at beginning of
period.......................... $ -- $ --
Unit Value at end of period....... -- --
Number of units outstanding at end
of period (thousands)........... -- --
SELECT GROWTH PORTFOLIO (3/97)*
Unit Value at beginning of
period.......................... $ -- $ --
Unit Value at end of period....... -- --
Number of units outstanding at end
of period (thousands)........... -- --
SELECT BALANCED PORTFOLIO (3/97)*
Unit Value at beginning of
period.......................... $ -- $ --
Unit Value at end of period....... -- --
Number of units outstanding at end
of period (thousands)........... -- --
</TABLE>
B-1
<PAGE> 40
APPENDIX B
- --------------------------------------------------------------------------------
CONDENSED FINANCIAL INFORMATION
THE TRAVELERS FUND BD II FOR VARIABLE ANNUITIES
ACCUMULATION UNIT VALUES (CONTINUED)
<TABLE>
<CAPTION>
YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED
DECEMBER 31, 1999 DECEMBER 31, 1998 DECEMBER 31, 1997 DECEMBER 31, 1996
STANDARD ENHANCED STANDARD ENHANCED STANDARD ENHANCED STANDARD ENHANCED
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
SELECT CONSERVATIVE PORTFOLIO**
(3/97)*
Unit Value at beginning of
period.......................... $ 1.162 $ 1.156 $ 1.108 $ 1.105 $ 1.000 $ 1.000 $ -- $ --
Unit Value at end of period....... 1.196 1.187 1.162 1.156 1.108 1.105 -- --
Number of units outstanding at end
of period (thousands)........... 1,316 427 1,424 305 863 105 -- --
SELECT INCOME PORTFOLIO** (3/97)*
Unit Value at beginning of
period.......................... $ 1.154 $ 1.148 $ 1.106 $ 1.104 $ 1.000 $ 1.000 $ -- $ --
Unit Value at end of period....... 1.148 1.139 1.154 1.148 1.106 1.104 -- --
Number of units outstanding at end
of period (thousands)........... 791 30 1,102 76 364 25 -- --
TRAVELERS SERIES FUND INC.
AIM CAPITAL APPRECIATION PORTFOLIO
(11/95)*
Unit Value at beginning of
period.......................... $ 1.397 $ 1.385 $ 1.206 $ 1.198 $ 1.088 $ 1.084 $ 0.958 $ 0.957
Unit Value at end of period....... 1.974 1.951 1.397 1.385 1.206 1.198 1.088 1.084
Number of units outstanding at end
of period (thousands)........... 59,795 10,758 59,824 11,522 48,942 8,845 29,460 4,246
ALLIANCE GROWTH PORTFOLIO (11/95)*
Unit Value at beginning of
period.......................... $ 2.903 $ 2.867 $ 2.276 $ 2.254 $ 1.785 $ 1.772 $ 1.396 $ 1.390
Unit Value at end of period....... 3.795 3.737 2.903 2.867 2.276 2.254 1.785 1.772
Number of units outstanding at end
of period (thousands)........... 76,734 13,423 67,640 13,083 47,935 8,482 24,031 3,613
INVESCO STRATEGIC INCOME PORTFOLIO
(FORMERLY G.T. GLOBAL STRATEGIC
INCOME) (11/95)*
Unit Value at beginning of
period.......................... $ 1.359 $ 1.342 $ 1.397 $ 1.383 $ 1.316 $ 1.306 $ 1.121 $ 1.116
Unit Value at end of period....... 1.319 1.299 1.359 1.342 1.397 1.383 1.316 1.306
Number of units outstanding at end
of period (thousands)........... 5,149 850 5,481 973 5,016 954 1,833 463
MFS TOTAL RETURN PORTFOLIO
(11/95)*
Unit Value at beginning of
period.......................... $ 1.819 $ 1.796 $ 1.648 $ 1.632 $ 1.376 $ 1.366 $ 1.216 $ 1.211
Unit Value at end of period....... 1.845 1.817 1.819 1.796 1.648 1.632 1.376 1.366
Number of units outstanding at end
of period (thousands)........... 64,327 11,574 58,653 11,646 34,928 6,139 16,651 1,810
PUTNAM DIVERSIFIED INCOME
PORTFOLIO (11/95)*
Unit Value at beginning of
period.......................... $ 1.326 $ 1.309 $ 1.332 $ 1.319 $ 1.252 $ 1.243 $ 1.170 $ 1.165
Unit Value at end of period....... 1.325 1.304 1.326 1.309 1.332 1.319 1.252 1.243
Number of units outstanding at end
of period (thousands)........... 31,303 7,149 29,566 7,312 19,504 3,953 10,424 1,461
SMITH BARNEY HIGH INCOME PORTFOLIO
(11/95)*
Unit Value at beginning of
period.......................... $ 1.452 $ 1.434 $ 1.463 $ 1.448 $ 1.300 $ 1.291 $ 1.162 $ 1.157
Unit Value at end of period....... 1.472 1.450 1.452 1.434 1.463 1.448 1.300 1.291
Number of units outstanding at end
of period (thousands)........... 30,633 4,266 31,054 4,740 21,213 2,640 7,719 970
SMITH BARNEY INTERNATIONAL EQUITY
PORTFOLIO (11/95)*
Unit Value at beginning of
period.......................... $ 1.305 $ 1.289 $ 1.240 $ 1.228 $ 1.222 $ 1.213 $ 1.050 $ 1.046
Unit Value at end of period....... 2.164 2.131 1.305 1.289 1.240 1.228 1.222 1.213
Number of units outstanding at end
of period (thousands)........... 40,313 5,907 38,529 6,199 31,311 4,872 16,855 2,010
<CAPTION>
PERIOD FROM
11/8/95
(EFFECTIVE DATE) TO
DECEMBER 31, 1995
STANDARD ENHANCED
- ----------------------------------- -------------------
<S> <C> <C>
SELECT CONSERVATIVE PORTFOLIO**
(3/97)*
Unit Value at beginning of
period.......................... $ -- $ --
Unit Value at end of period....... -- --
Number of units outstanding at end
of period (thousands)........... -- --
SELECT INCOME PORTFOLIO** (3/97)*
Unit Value at beginning of
period.......................... $ -- $ --
Unit Value at end of period....... -- --
Number of units outstanding at end
of period (thousands)........... -- --
TRAVELERS SERIES FUND INC.
AIM CAPITAL APPRECIATION PORTFOLIO
(11/95)*
Unit Value at beginning of
period.......................... $ 1.000 $ 1.000
Unit Value at end of period....... 0.958 0.957
Number of units outstanding at end
of period (thousands)........... 2,537 908
ALLIANCE GROWTH PORTFOLIO (11/95)*
Unit Value at beginning of
period.......................... $ 1.047 $ 1.046
Unit Value at end of period....... 1.396 1.390
Number of units outstanding at end
of period (thousands)........... 1,574 453
INVESCO STRATEGIC INCOME PORTFOLIO
(FORMERLY G.T. GLOBAL STRATEGIC
INCOME) (11/95)*
Unit Value at beginning of
period.......................... $ 0.945 $ 0.944
Unit Value at end of period....... 1.121 1.116
Number of units outstanding at end
of period (thousands)........... 33 80
MFS TOTAL RETURN PORTFOLIO
(11/95)*
Unit Value at beginning of
period.......................... $ 0.979 $ 0.977
Unit Value at end of period....... 1.216 1.211
Number of units outstanding at end
of period (thousands)........... 913 102
PUTNAM DIVERSIFIED INCOME
PORTFOLIO (11/95)*
Unit Value at beginning of
period.......................... $ 1.009 $ 1.007
Unit Value at end of period....... 1.170 1.165
Number of units outstanding at end
of period (thousands)........... 824 126
SMITH BARNEY HIGH INCOME PORTFOLIO
(11/95)*
Unit Value at beginning of
period.......................... $ 0.988 $ 0.986
Unit Value at end of period....... 1.162 1.157
Number of units outstanding at end
of period (thousands)........... 243 332
SMITH BARNEY INTERNATIONAL EQUITY
PORTFOLIO (11/95)*
Unit Value at beginning of
period.......................... $ 0.955 $ 0.954
Unit Value at end of period....... 1.050 1.046
Number of units outstanding at end
of period (thousands)........... 556 201
</TABLE>
B-2
<PAGE> 41
APPENDIX B
- --------------------------------------------------------------------------------
CONDENSED FINANCIAL INFORMATION
THE TRAVELERS FUND BD II FOR VARIABLE ANNUITIES
ACCUMULATION UNIT VALUES (CONTINUED)
<TABLE>
<CAPTION>
YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED
DECEMBER 31, 1999 DECEMBER 31, 1998 DECEMBER 31, 1997 DECEMBER 31, 1996
STANDARD ENHANCED STANDARD ENHANCED STANDARD ENHANCED STANDARD ENHANCED
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
SMITH BARNEY LARGE CAPITALIZATION
GROWTH (5/98)*
Unit Value at beginning of
period.......................... $ 1.237 $ 1.234 $ 1.000 $ 1.000 $ -- $ -- $ -- $ --
Unit Value at end of period....... 1.599 1.592 1.237 1.234 -- -- -- --
Number of units outstanding at end
of period (thousands)........... 46,288 3,491 12,176 1,447 -- -- -- --
SMITH BARNEY LARGE CAP VALUE
PORTFOLIO(11/95)*
(formerly Smith Barney Income
and Growth Portfolio)
Unit Value at beginning of
period.......................... $ 2.076 $ 2.050 $ 1.913 $ 1.894 $ 1.528 $ 1.517 $ 1.291 $ 1.285
Unit Value at end of period....... 2.053 2.022 2.076 2.050 1.913 1.894 1.528 1.517
Number of units outstanding at end
of period (thousands)........... 45,773 8,114 40,967 8,249 27,117 4,645 11,906 1,606
SMITH BARNEY MONEY MARKET
PORTFOLIO (11/95)*
Unit Value at beginning of
period.......................... $ 1.184 $ 1.169 $ 1.140 $ 1.129 $ 1.098 $ 1.090 $ 1.058 $ 1.054
Unit Value at end of period....... 1.226 1.207 1.184 1.169 1.140 1.129 1.098 1.090
Number of units outstanding at end
of period (thousands)........... 48,631 5,841 41,370 6,024 25,661 2,417 22,962 2,362
SMITH BARNEY PACIFIC BASIN
PORTFOLIO (11/95)*
Unit Value at beginning of
period.......................... $ 0.742 $ 0.733 $ 0.700 $ 0.693 $ 0.983 $ 0.977 $ 0.910 $ 0.906
Unit Value at end of period....... 1.435 1.413 0.742 0.733 0.700 0.693 0.983 0.977
Number of units outstanding at end
of period (thousands)........... 9,217 967 5,083 1,023 5,124 862 2,755 467
TRAVELERS MANAGED INCOME PORTFOLIO
(11/95)*
Unit Value at beginning of
period.......................... $ 1.309 $ 1.293 $ 1.261 $ 1.248 $ 1.163 $ 1.154 $ 1.142 $ 1.137
Unit Value at end of period....... 1.306 1.286 1.309 1.293 1.261 1.248 1.163 1.154
Number of units outstanding at end
of period (thousands)........... 20,425 2,551 11,544 2,823 4,489 1,001 2,636 266
VAN KAMPEN ENTERPRISE PORTFOLIO
(11/95)*
Unit Value at beginning of
period.......................... $ 2.601 $ 2.568 $ 2.103 $ 2.083 $ 1.655 $ 1.643 $ 1.362 $ 1.356
Unit Value at end of period....... 3.238 3.188 2.601 2.568 2.103 2.083 1.655 1.643
Number of units outstanding at end
of period (thousands)........... 39,297 6,615 35,644 6,741 24,635 4,385 11,360 1,644
TRAVELERS SERIES TRUST:
CONVERTIBLE BOND PORTFOLIO (5/98)*
Unit Value at beginning of
period.......................... $ 1.001 $ 0.999 $ 1.000 $ 1.000 $ -- $ -- $ -- $ --
Unit Value at end of period....... 1.175 1.169 1.001 0.999 -- -- -- --
Number of units outstanding at end
of period (thousands)........... 1,597 429 418 22 -- -- -- --
DISCIPLINED MID CAP STOCK
PORTFOLIO (5/98)*
Unit Value at beginning of
period.......................... $ 1.064 $ 1.063 $ 1.000 $ 1.000 $ -- $ -- $ -- $ --
Unit Value at end of period....... 1.194 1.188 1.064 1.063 -- -- -- --
Number of units outstanding at end
of period (thousands)........... 3,984 256 550 28 -- -- -- --
DISCIPLINED SMALL CAP STOCK
PORTFOLIO (5/98)*
Unit Value at beginning of
period.......................... $ 0.896 $ 0.894 $ 1.000 $ 1.000 $ -- $ -- $ -- $ --
Unit Value at end of period....... 1.066 1.061 0.896 0.894 -- -- -- --
Number of units outstanding at end
of period (thousands)........... 1,074 87 365 17 -- -- -- --
<CAPTION>
PERIOD FROM
11/8/95
(EFFECTIVE DATE) TO
DECEMBER 31, 1995
STANDARD ENHANCED
- ----------------------------------- -------------------
<S> <C> <C>
SMITH BARNEY LARGE CAPITALIZATION
GROWTH (5/98)*
Unit Value at beginning of
period.......................... $ -- $ --
Unit Value at end of period....... -- --
Number of units outstanding at end
of period (thousands)........... -- --
SMITH BARNEY LARGE CAP VALUE
PORTFOLIO(11/95)*
(formerly Smith Barney Income
and Growth Portfolio)
Unit Value at beginning of
period.......................... $ 0.981 $ 0.980
Unit Value at end of period....... 1.291 1.285
Number of units outstanding at end
of period (thousands)........... 596 146
SMITH BARNEY MONEY MARKET
PORTFOLIO (11/95)*
Unit Value at beginning of
period.......................... $ 1.016 $ 1.014
Unit Value at end of period....... 1.058 1.054
Number of units outstanding at end
of period (thousands)........... 2,374 820
SMITH BARNEY PACIFIC BASIN
PORTFOLIO (11/95)*
Unit Value at beginning of
period.......................... $ 0.899 $ 0.898
Unit Value at end of period....... 0.910 0.906
Number of units outstanding at end
of period (thousands)........... 37 20
TRAVELERS MANAGED INCOME PORTFOLIO
(11/95)*
Unit Value at beginning of
period.......................... $ 0.997 $ 0.995
Unit Value at end of period....... 1.142 1.137
Number of units outstanding at end
of period (thousands)........... 226 90
VAN KAMPEN ENTERPRISE PORTFOLIO
(11/95)*
Unit Value at beginning of
period.......................... $ 1.039 $ 1.037
Unit Value at end of period....... 1.362 1.356
Number of units outstanding at end
of period (thousands)........... 765 329
TRAVELERS SERIES TRUST:
CONVERTIBLE BOND PORTFOLIO (5/98)*
Unit Value at beginning of
period.......................... $ -- $ --
Unit Value at end of period....... -- --
Number of units outstanding at end
of period (thousands)........... -- --
DISCIPLINED MID CAP STOCK
PORTFOLIO (5/98)*
Unit Value at beginning of
period.......................... $ -- $ --
Unit Value at end of period....... -- --
Number of units outstanding at end
of period (thousands)........... -- --
DISCIPLINED SMALL CAP STOCK
PORTFOLIO (5/98)*
Unit Value at beginning of
period.......................... $ -- $ --
Unit Value at end of period....... -- --
Number of units outstanding at end
of period (thousands)........... -- --
</TABLE>
B-3
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APPENDIX B
- --------------------------------------------------------------------------------
CONDENSED FINANCIAL INFORMATION
THE TRAVELERS FUND BD II FOR VARIABLE ANNUITIES
ACCUMULATION UNIT VALUES (CONTINUED)
<TABLE>
<CAPTION>
YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED
DECEMBER 31, 1999 DECEMBER 31, 1998 DECEMBER 31, 1997 DECEMBER 31, 1996
STANDARD ENHANCED STANDARD ENHANCED STANDARD ENHANCED STANDARD ENHANCED
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
MFS EMERGING GROWTH PORTFOLIO
(11/96)*
Unit Value at beginning of
period.......................... $ 1.599 $ 1.589 $ 1.204 $ 1.200 $ 1.005 $ 1.005 $ 1.000 $ 1.000
Unit Value at end of period....... 2.793 2.769 1.599 1.589 1.204 1.200 1.005 1.005
Number of units outstanding at end
of period (thousands)........... 38,199 7,825 29,937 7,522 17,295 4,256 2,506 466
MFS RESEARCH PORTFOLIO (5/98)*
Unit Value at beginning of
period.......................... $ 1.037 $ 1.035 $ 1.000 $ 1.000 $ -- $ -- $ -- $ --
Unit Value at end of period....... 1.267 1.261 1.037 1.035 -- -- -- --
Number of units outstanding at end
of period (thousands)........... 7,721 1,495 3,295 1,243 -- -- -- --
STRATEGIC STOCK PORTFOLIO (5/98)*
Unit Value at beginning of
period.......................... $ 0.936 $ 0.934 $ 1.000 $ 1.000 $ -- $ -- $ -- $ --
Unit Value at end of period....... 0.971 0.966 0.936 0.934 -- -- -- --
Number of units outstanding at end
of period (thousands)........... 3,336 80 3,336 44 -- -- -- --
<CAPTION>
PERIOD FROM
11/8/95
(EFFECTIVE DATE) TO
DECEMBER 31, 1995
STANDARD ENHANCED
- ----------------------------------- -------------------
<S> <C> <C>
MFS EMERGING GROWTH PORTFOLIO
(11/96)*
Unit Value at beginning of
period.......................... $ -- $ --
Unit Value at end of period....... -- --
Number of units outstanding at end
of period (thousands)........... -- --
MFS RESEARCH PORTFOLIO (5/98)*
Unit Value at beginning of
period.......................... $ -- $ --
Unit Value at end of period....... -- --
Number of units outstanding at end
of period (thousands)........... -- --
STRATEGIC STOCK PORTFOLIO (5/98)*
Unit Value at beginning of
period.......................... $ -- $ --
Unit Value at end of period....... -- --
Number of units outstanding at end
of period (thousands)........... -- --
</TABLE>
* Reflects date money was first applied to the funding option through the
Separate Account. Condensed Financial Information is shown as of this date.
** Not available to new contract owners after May 1, 1998 in most states.
The financial statements of Fund BD II and the financial statements of The
Travelers Life and Annuity Company are contained in the SAI.
Funding options not listed above were not yet available through the Separate
Account as of December 31, 1999.
"Number of Units outstanding at end of period" may include units for contract
owners in the payout phase.
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<PAGE> 43
APPENDIX C
- --------------------------------------------------------------------------------
THE FIXED ACCOUNT
The Fixed Account is secured by part of the general assets of the Company. The
general assets of the Company include all assets of the Company other than those
held in the separate accounts sponsored by the Company or its affiliates.
The staff of the SEC does not generally review the disclosure in the prospectus
relating to the Fixed Account. Disclosure regarding the Fixed Account and the
general account may, however, be subject to certain provisions of the federal
securities laws relating to the accuracy and completeness of statements made in
the prospectus.
Under the Fixed Account, the Company assumes the risk of investment gain or
loss, guarantees a specified interest rate, and guarantees a specified periodic
annuity payment. The investment gain or loss of the Separate Account or any of
the funding options does not affect the Fixed Account portion of the contract
owner's contract value, or the dollar amount of fixed annuity payments made
under any payout option.
We guarantee that, at any time, the Fixed Account contract value will not be
less than the amount of the purchase payments allocated to the Fixed Account,
plus interest credited as described below, less any applicable premium taxes or
prior surrenders.
Purchase payments allocated to the Fixed Account and any transfers made to the
Fixed Account become part of the Company's general account which supports
insurance and annuity obligations. Neither the general account nor any interest
therein is registered under, nor subject to the provisions of, the Securities
Act of 1933 or Investment Company Act of 1940. We will invest the assets of the
Fixed Account at our discretion. Investment income from such Fixed Account
assets will be allocated to us and to the Contracts participating in the Fixed
Account.
Investment income from the Fixed Account allocated to us includes compensation
for mortality and expense risks borne by us in connection with Fixed Account
Contracts. The amount of such investment income allocated to the Contracts will
vary from year to year in our sole discretion at such rate or rates as we
prospectively declare from time to time.
The initial rate for any allocations into the Fixed Account is guaranteed for
one year from the date of such allocation. Subsequent renewal rates will be
guaranteed for the calendar quarter. We also guarantee that for the life of the
Contract we will credit interest at not less than 3% per year. Any interest
credited to amounts allocated to the Fixed Account in excess of 3% per year will
be determined in our sole discretion. You assume the risk that interest credited
to the Fixed Account may not exceed the minimum guarantee of 3% for any given
year.
TRANSFERS
You may make transfers from the Fixed Account to any other available funding
option(s) twice a year during the 30 days following the semiannual anniversary
of the contract effective date. The transfers are limited to an amount of up to
15% of the Fixed Account Value on the semiannual contract effective date
anniversary. (This restriction does not apply to transfers under the Dollar Cost
Averaging Program.) Amounts previously transferred from the Fixed Account to
other funding options may not be transferred back to the Fixed Account for a
period of at least six months from the date of transfer. We reserve the right to
waive either of these restrictions.
Automated transfers from the Fixed Account to any of the funding options may
begin at any time. Automated transfers from the Fixed Account may not deplete
your Fixed Account value in a period of less than twelve months from your
enrollment in the Dollar Cost Averaging Program.
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APPENDIX D
- --------------------------------------------------------------------------------
CONTENTS OF THE STATEMENT OF ADDITIONAL INFORMATION
The Statement of Additional Information contains more specific information and
financial statements relating to The Travelers Insurance Company or The
Travelers Life and Annuity Company. A list of the contents of the Statement of
Additional Information is set forth below:
The Insurance Company
Principal Underwriter
Distribution and Principal Underwriting Agreement
Valuation of Assets
Performance Information
Mixed and Shared Funding
Federal Tax Considerations
Independent Accountants
Financial Statements
- --------------------------------------------------------------------------------
Copies of the Statement of Additional Information dated May 1, 2000 are
available without charge. To request a copy, please clip this coupon on the
dotted line above, enter your name and address in the spaces provided below, and
mail to: The Travelers Life and Annuity Company, Annuity Investor Services, One
Tower Square, Hartford, Connecticut 06183. The Travelers Insurance Company
Statement of Additional Information is printed on Form L-12253 and The Travelers
Life and Annuity Statement of Additional Information is printed on Form L-12540.
Name:
___________________________________
Address:
___________________________________
___________________________________
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L-12253-N May 1, 2000
