THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES
DECEMBER 31, 1997
PROFILE OF INCOME MANAGER(R) ROLLOVER IRA
COMBINATION VARIABLE AND FIXED DEFERRED ANNUITY CERTIFICATES
This Profile is a summary of some of the more important points that you should
know and consider before purchasing a Certificate. The Certificate is more fully
described in the prospectus which accompanies this Profile. Please read the
prospectus carefully.
[Picture of Equitable Logo "Goddess of Protection"]
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1. THE ANNUITY CERTIFICATE. The Rollover IRA Certificate is a deferred
individual retirement annuity (IRA, which can be either TRADITIONAL IRAS or ROTH
IRAS) issued by Equitable Life. It is designed to provide for the accumulation
of retirement savings and for income through the investment, during an
accumulation phase, of rollover contributions, direct transfers from other
individual retirement arrangements and additional IRA contributions. You may
invest in Investment Funds where your Certificate's value may vary up or down
depending upon investment performance. You may also invest in Guarantee Periods
(also called GIROS) that when held to maturity provide guaranteed interest rates
that we have set and a guarantee of principal. If you make any transfers or
withdrawals, the GIROs' investment value may increase or decrease until maturity
due to interest rate changes. Earnings accumulate under your Certificate on a
tax-deferred basis until amounts are distributed. All amounts distributed are
subject to income tax.
The Investment Funds offer a potential for better returns than the interest
rates guaranteed under GIROs, but the Investment Funds involve risk and you can
lose money. You may make transfers among the Investment Funds and GIROs. The
value of GIROs prior to their maturity fluctuates and you can lose money on
premature transfers or withdrawals.
The Certificate provides a number of distribution methods during the
accumulation phase and for converting to annuity income, which include the
ASSURED PAYMENT OPTION, APO PLUS and other annuity benefits.
The Assured Payment Option may also be elected if you desire to start receiving
a form of lifetime income immediately. When you elect the Assured Payment
Option, your Certificate's value will be reduced to provide for guaranteed
lifetime income. You may also elect APO Plus whereby a portion of your money is
invested under the Assured Payment Option, and the remaining amount is allocated
to the Alliance Common Stock Fund or the Alliance Equity Index Fund, as you
select. Every three years during the fixed period of the Assured Payment Option,
a portion of your money in the selected Investment Fund is applied to increase
the guaranteed payments under the Assured Payment Option. The amount accumulated
under your Certificate during the accumulation phase will affect the amount of
distribution or annuity benefits you will receive.
2. ANNUITY PAYMENTS. You can have your Certificate's value applied to any of the
following ANNUITY BENEFITS: (1) Life Annuity - payments for your life; (2) Life
Annuity - Period Certain - payments for your life, but with payments continuing
to the beneficiary for the balance of the 5, 10, 15 or 20 years (as you select)
if you die before the end of the selected period; (3) Life Annuity - Refund
Certain - payments for your life, with payments continuing to the beneficiary
after your death until any remaining amount applied to this option runs out; and
(4) Period Certain Annuity - payments for a specified period of time, usually 5,
10, 15 or 20 years, with no life contingencies. Options (2) and (3) are also
available as a Joint and Survivor Annuity - payments for your life, and after
your death, continuation of payments to the survivor for life. Annuity Benefits
(other than the Refund Certain which is only available on a fixed basis) are
available as a fixed annuity, or as a variable annuity, where the dollar amount
of your payments will depend upon the investment performance of the Investment
Funds. Once you begin receiving income annuity payments, you cannot change your
annuity benefit.
Income Manager is a registered service mark
and baseBUILDER is a service mark of
The Equitable Life Assurance Society of the United States.
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3. PURCHASE. You can purchase a Certificate by rolling over or transferring at
least $5,000 or more from one or more individual retirement arrangements. Under
a Traditional IRA Certificate you may add additional amounts of $1,000 or more
at any time (subject to certain restrictions). Regular contributions under a
Traditional IRA are limited to $2,000 per year, but additional rollover or IRA
transfer amounts are unlimited. In certain cases, additional amounts may not be
added to a Roth IRA Certificate.
Subject to certain age restrictions, you may purchase the baseBUILDER(SM)
guaranteed benefits in the form of a Combined Guaranteed Minimum Death Benefit
and Guaranteed Minimum Income Benefit (Plan A). If you do not elect the combined
benefit, the Guaranteed Minimum Death Benefit is provided under the Certificate
at a lower charge (Plan B). Both benefits are discussed below.
4. INVESTMENT OPTIONS. You may invest in any or all of the following Investment
Funds, which invest in shares of corresponding portfolios of The Hudson River
Trust (HR TRUST) and EQ Advisors Trust (EQ TRUST). The portfolios are described
in the prospectuses for HR Trust and EQ Trust.
<TABLE>
<CAPTION>
- ---------------------------------------------------------------------------------------------------------------------
EQUITY SERIES:
- ---------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
DOMESTIC EQUITY INTERNATIONAL EQUITY AGGRESSIVE EQUITY
Alliance Common Stock Alliance Global Alliance Aggressive Stock
Alliance Growth & Income Alliance International Alliance Small Cap Growth
BT Equity 500 Index BT International Equity Index BT Small Company Index
EQ/Putnam Growth & Income Value Morgan Stanley Emerging Markets MFS Emerging Growth Companies
MFS Research Equity Warburg Pincus Small Company
Merrill Lynch Basic Value Equity T. Rowe Price International Stock Value
T. Rowe Price Equity Income
- ---------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
- ---------------------------------------------------------------------------------------------------------------------
ASSET ALLOCATION SERIES FIXED INCOME SERIES
- ---------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
Alliance Conservative Investors AGGRESSIVE FIXED INCOME DOMESTIC FIXED INCOME
Alliance Growth Investors Alliance High Yield Alliance Intermediate Government
EQ/Putnam Balanced Securities
Merrill Lynch World Strategy Alliance Money Market
- ---------------------------------------------------------------------------------------------------------------------
Alliance Equity Index (AVAILABLE ONLY UNDER APO PLUS)
- ---------------------------------------------------------------------------------------------------------------------
</TABLE>
You may also invest in one or more GIROs currently maturing in years 1999
through 2008. Under the Assured Payment Option and APO Plus, GIROs currently
maturing in years 2009 through 2012 are also available. The GIRO maturing on
February 15, 2013 will become available under the Assured Payment Option and APO
Plus on January 2, 1998.
[Picture of mature couple]
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5. EXPENSES. The Certificate has expenses as follows: There is an annual charge
expressed as a percentage of the Guaranteed Minimum Death Benefit. For Plan A
the percentage is equal to 0.45% for the 6% to Age 80 Benefit; and 0.30% for the
6% to Age 70 Benefit. For Plan B the percentage is equal to 0.20%. As a
percentage of assets in the Investment Funds, a daily charge is deducted for
mortality and expense risks at an annual rate of 0.90%; and a daily charge is
deducted for administration expenses at an annual rate of 0.25%.
The charges for the portfolios of HR Trust range from 0.63% to 1.33% of the
average daily net assets of HR Trust portfolios, depending upon HR Trust
portfolios selected. The charges for the portfolios of EQ Trust range from 0.55%
to 1.75% of the average daily net assets of EQ Trust portfolios, depending upon
the EQ Trust portfolios selected. The amounts for HR Trust are based on restated
values during 1996 (as well as an expense cap for the Alliance Small Cap Growth
portfolio), and the amounts for EQ Trust are based on a current expense cap. The
12b-1 fees for the portfolios of HR Trust and EQ Trust are 0.25% of the average
daily net assets of HR Trust and EQ Trust, respectively. Charges for state
premium and other applicable taxes may also apply at the time you elect to start
receiving annuity payments.
A withdrawal charge is imposed as a percentage of each contribution withdrawn in
excess of a free corridor amount, or if the Certificate is surrendered. The free
corridor amount for withdrawals is 15% of the Certificate's value at the
beginning of the year, except that under the Assured Payment Option and APO Plus
it is 10%. The withdrawal charge does not apply under certain of the
distribution methods available under the Certificate. When applicable, the
withdrawal charge is determined in accordance with the table below, based on the
year a contribution is withdrawn. The year in which we receive your contribution
is "Year 1."
Year of Contribution Withdrawal
1 2 3 4 5 6 7 8+
--------------------------------------------------------------
Percentage of
Contribution 7.0% 6.0% 5.0% 4.0% 3.0% 2.0% 1.0% 0.0%
The following chart is designed to help you understand the charges in the
Certificate. The "Total Annual Charges" column shows the combined total of the
Certificate charges deducted as a percentage of assets in the Investment Funds
and the portfolio charges, as shown in the first two columns. The last two
columns show you two examples of the charges, in dollars, that you would pay
under a Certificate, and include the Guaranteed Minimum Death Benefit based
charge for the optional Combined Guaranteed Minimum Death Benefit and Guaranteed
Minimum Income Benefit equal to 0.45%. The examples assume that you invested
$1,000 in a Certificate which earns 5% annually and that you withdraw your
money: (1) at the end of year 1, and (2) at the end of year 10. For year 1, the
Total Annual Charges are assessed as well as the withdrawal charge. For year 10,
the example shows the aggregate of all the annual charges assessed for the 10
years, but there is no withdrawal charge. No charges for state premium and other
applicable taxes are assumed in the examples.
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<TABLE>
<CAPTION>
EXAMPLES
Total Annual
TOTAL ANNUAL TOTAL ANNUAL TOTAL Expenses at End of:
CERTIFICATE PORTFOLIO ANNUAL (1) (2)
INVESTMENT FUND CHARGES CHARGES CHARGES 1 Year 10 Years
<S> <C> <C> <C> <C> <C>
Alliance Conservative Investors 1.15% 0.80% 1.95% $89.74 $275.75
Alliance Growth Investors 1.15% 0.84% 1.99% $90.14 $279.80
Alliance Growth & Income 1.15% 0.85% 2.00% $90.24 $280.80
Alliance Common Stock 1.15% 0.66% 1.81% $88.35 $261.52
Alliance Global 1.15% 0.98% 2.13% $91.53 $293.80
Alliance International 1.15% 1.33% 2.48% $95.01 $328.00
Alliance Aggressive Stock 1.15% 0.83% 1.98% $90.04 $278.79
Alliance Small Cap Growth 1.15% 1.20% 2.35% $93.72 $315.43
Alliance Money Market 1.15% 0.64% 1.79% $88.15 $259.45
Alliance Intermediate
Government Securities 1.15% 0.84% 1.99% $90.14 $279.80
Alliance High Yield 1.15% 0.91% 2.06% $90.84 $286.83
UNDER APO PLUS
Alliance Common Stock 1.15% 0.66% 1.81% $88.35 $233.84
Alliance Equity Index 1.15% 0.63% 1.78% $88.05 $230.74
BT Equity 500 Index 1.15% 0.55% 1.70% $87.26 $250.17
BT Small Company Index 1.15% 0.60% 1.75% $87.75 $255.35
BT International Equity Index 1.15% 0.80% 1.95% $89.74 $275.75
MFS Emerging Growth Companies 1.15% 0.85% 2.00% $90.24 $288.87
MFS Research 1.15% 0.85% 2.00% $90.24 $288.87
Merrill Lynch Basic Value
Equity 1.15% 0.85% 2.00% $90.24 $288.87
Merrill Lynch World Strategy 1.15% 1.20% 2.35% $93.72 $323.50
Morgan Stanley Emerging
Markets Equity 1.15% 1.75% 2.90% $99.19 $375.62
EQ/Putnam Balanced 1.15% 0.90% 2.05% $90.74 $293.88
EQ/Putnam Growth & Income
Value 1.15% 0.85% 2.00% $90.24 $288.87
T. Rowe Price Equity Income 1.15% 0.85% 2.00% $90.24 $288.87
T. Rowe Price International
Stock 1.15% 1.20% 2.35% $93.72 $323.50
Warburg Pincus Small Company
Value 1.15% 1.00% 2.15% $91.73 $303.84
</TABLE>
Total annual portfolio charges may vary from year to year. For Investment Funds
investing in portfolios with less than 10 years of operations, charges have been
estimated. The charges reflect any waiver or limitation. For more detailed
information, see the Fee table in the prospectus.
6. TAXES. In most cases, your earnings are not taxed until distributions are
made from your Certificate. If you are younger than age 59 1/2 when you receive
any distributions, in addition to income tax you may be charged a 10% Federal
tax penalty on the taxable amount received.
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7. ACCESS TO YOUR MONEY. During the accumulation phase, you also may receive
distributions under a Certificate through the following WITHDRAWAL OPTIONS: (1)
Lump Sum Withdrawals of at least $1,000 may be taken at any time. Lump Sum
Withdrawals are also available under the Distribution Options. (2) Substantially
Equal Payment Withdrawals (if you are less than age 59 1/2), paid monthly,
quarterly or annually based on life expectancy; (3) Systematic Withdrawals (if
you are age 59 1/2 to 70), paid monthly, quarterly or annually, subject to
certain restrictions, including a maximum percentage of your Certificate's
value; and (4) only under Traditional IRA Certificates, Minimum Distribution
Withdrawals (after you are age 70 1/2), which pays the minimum amount necessary
to meet minimum distribution requirements in the Internal Revenue Code. You also
have access to your Certificate's value by surrendering the Certificate. All or
a portion of certain withdrawals may be subject to a withdrawal charge to the
extent that the withdrawal exceeds the free corridor amount. A free corridor
amount does not apply to a surrender. Withdrawals and surrenders are subject to
income tax and may be subject to a tax penalty.
8. PERFORMANCE. During the accumulation phase, your Certificate's value in the
Investment Funds may vary up or down depending upon the investment performance
of the Investment Funds you have selected. Past performance is not a guarantee
of future results.
9. DEATH BENEFIT. If you die before amounts are applied under an annuity
benefit, the named beneficiary will be paid a death benefit. The death benefit
(except in New York) is equal to (1) your Certificate's value in the Investment
Funds, or if greater, the Guaranteed Minimum Death Benefit, and (2) the amount
of the death benefit provided with respect to GIROs.
The Guaranteed Minimum Death Benefit is a "6% to Age 80 Benefit." We add
interest to the initial amount at 6% (3% for amounts in the Alliance Money
Market and Alliance Intermediate Government Securities Funds) through age
80 (or at your death, if earlier). The 6% interest rate will still apply
for amounts in the Alliance Money Market Fund under the Special Dollar
Cost Averaging program discussed below.
If you elect Plan A and are between the ages of 20 through 65, you
may instead elect a 6% to Age 70 Benefit, for a lower charge.
The death benefit with respect to the GIROs is equal to the amounts in the
GIROs, or if greater, the amounts in the GIROs reflecting guaranteed interest,
but not reflecting any increase due to interest rate changes.
The death benefit applicable to Certificates issued in New York is equal to the
amounts in the Investment Funds and the GIROs, or if greater, the Guaranteed
Minimum Death Benefit.
The Guaranteed Minimum Death Benefit is reset each year through age 80 to
your Certificate's value, if it is higher than the prior year's Guaranteed
Minimum Death Benefit. The Guaranteed Minimum Death Benefit at your death
will never be less than the amounts in the Investment Funds, plus the
amounts in the GIROs reflecting guaranteed interest, but not reflecting
any increase due to interest rate changes.
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10. OTHER INFORMATION.
BASEBUILDER BENEFIT (PLAN A). The baseBUILDER (available for ages 20 through 75
at issue of the Certificates) is an optional benefit that combines the
Guaranteed Minimum Income Benefit and the Guaranteed Minimum Death Benefit. A
baseBUILDER benefit (which is different from the one described below) may be
available for annuitant issue ages 76 and older. The baseBUILDER benefit is
currently not available in New York.
Income Benefit -- The Guaranteed Minimum Income Benefit, as part of the
baseBUILDER, provides a minimum amount of guaranteed lifetime income for
your future. When you are ready to convert (at specified future times)
your Certificate's value to the Assured Payment Option, the amount of
lifetime income that will be provided will be the greater of (i) your
Guaranteed Minimum Income Benefit or (ii) your Certificate's current value
applied at current annuity purchase factors. Investment performance is not
guaranteed. The Guaranteed Minimum Income Benefit provides a safety net
for your future.
Death Benefit -- As part of the baseBUILDER, a Guaranteed Minimum Death
Benefit is provided which is the 6% to Age 80 Benefit or the 6% to Age 70
Benefit, both of which are described in "Death Benefit" above.
FREE LOOK. You can examine the Certificate for a period of 10 days after you
receive it, and return it to us for a refund. The free look period is longer in
some states.
Your refund will equal your Certificate's value, reflecting any investment gain
or loss, in the Investment Funds, and any increase or decrease in the value of
any amounts held in the GIROs, through the date we receive your Certificate.
Some states or Federal income tax regulations may require that we calculate the
refund differently. In the case of a complete conversion of an existing
Traditional IRA Certificate to a Roth IRA, you may cancel your Roth IRA and
return to a Traditional IRA by following the instructions in the request for
full conversion form available from the Processing Office or your agent.
PRINCIPAL ASSURANCE. This option is designed to assure the return of your
original amount invested on a GIRO maturity date, by putting a portion of your
money in a particular GIRO, and the balance in the Investment Funds in any way
you choose. Assuming that you make no transfers or withdrawals of the portion in
the GIRO, such amount will grow to your original investment upon maturity.
DOLLAR COST AVERAGING. Special Dollar Cost Averaging -- You can elect when you
apply for your Certificate to allocate your contribution to the Alliance Money
Market Fund and have it transferred from the Alliance Money Market Fund into the
other Investment Funds on a monthly basis over the first twelve months, during
which time the mortality and expense risks and administration charges will not
be deducted from the Alliance Money Market Fund. General Dollar Cost Averaging
- -- You can elect at any time to put money into the Alliance Money Market Fund
and have a dollar amount or percentage transferred from the Alliance Money
Market Fund into the other Investment Funds on a periodic basis over a longer
period of time, and all applicable Certificate charges deducted from the
Alliance Money Market Fund will apply. Dollar cost averaging does not assure a
profit or protect against a loss should market prices decline.
REBALANCING. You can have your money automatically readjusted among the
Investment Funds quarterly, semi-annually or annually in order to retain the
investment percentage allocations you select. Rebalancing does not assure a
profit or protect against a loss should market prices decline and should be
reviewed periodically, as your needs may change.
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10. OTHER INFORMATION (CONTINUED)
REPORTS. We will provide you with an annual statement of your Certificate's
values as of the last day of each year, and three additional reports of your
Certificate's values each year. You also will be provided with written
confirmations of each financial transaction, and copies of annual and
semi-annual statements of HR Trust and EQ Trust.
You may call toll-free at 1-800-789-7771 for a recording of daily Investment
Fund values and guaranteed rates applicable to GIROs.
11. INQUIRIES. If you need more information, please contact your agent. You may
also contact us, at:
The Equitable Life Assurance Society of the United States
Income Management Group
P.O. Box 1547
Secaucus, NJ 07096-1547
Telephone 1-800-789-7771 and Fax 1-201-583-2224
[Equitable Logo]
[Picture of fountain pen and calendar]
THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES
Income Management Group, 1290 Avenue of the Americas, New York, New York 10104
(C)1997 The Equitable Life Assurance Society of the United States,
All rights reserved.
IM-95-04 PROS(1/98)
CAT. NO. 127135
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THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES
DECEMBER 31, 1997
PROFILE OF INCOME MANAGER(R) ACCUMULATORSM(SM)
COMBINATION VARIABLE AND FIXED DEFERRED ANNUITY CERTIFICATES
This Profile is a summary of some of the more important points that you should
know and consider before purchasing a Certificate. The Certificate is more fully
described in the prospectus which accompanies this Profile. Please read the
prospectus carefully.
[Picture of Equitable Logo "Goddess of Protection"]
1
<PAGE>
1. THE ANNUITY CERTIFICATE. The Accumulator Certificate is a combination
variable and fixed deferred annuity issued by Equitable Life. It is designed to
provide for the accumulation of retirement savings and for income through the
investment, during an accumulation phase, of after-tax money. You may invest in
Investment Funds where your Certificate's value may vary up or down depending
upon investment performance. You may also invest in Guarantee Periods (also
called GIROS) that when held to maturity provide guaranteed interest rates that
we have set and a guarantee of principal. If you make any transfers or
withdrawals, the GIROs' investment value may increase or decrease until maturity
due to interest rate changes. Earnings accumulate under the Certificate on a
tax-deferred basis until amounts are distributed. Amounts distributed under the
Certificate may be subject to income tax.
The Investment Funds offer the potential for better returns than the interest
rates guaranteed under GIROs, but the Investment Funds involve risk and you can
lose money. You may make transfers among the Investment Funds and GIROs. The
value of GIROs prior to their maturity fluctuates and you can lose money on
premature transfers or withdrawals.
The Certificate provides a number of distribution methods during the
accumulation phase and for converting to annuity income. The amount accumulated
under your Certificate during the accumulation phase will affect the amount of
distribution or annuity benefits you receive.
2. ANNUITY PAYMENTS. When you are ready to start receiving income, annuity
income is available by applying your Certificate's value to the Income Manager
(Life Annuity with a Period Certain) payout annuity certificate. You can also
have your Certificate's value applied to any of the following ANNUITY BENEFITS:
(1) Life Annuity - payments for your life, (2) Life Annuity - Period Certain -
payments for your life, but with payments continuing to the beneficiary for the
balance of the 5, 10, 15 or 20 years (as you select) if you die before the end
of the selected period; (3) Life Annuity - Refund Certain - payments for your
life, with payments continuing to the beneficiary after your death until any
remaining amount applied to this option runs out; and (4) Period Certain Annuity
- - payments for a specified period of time, usually 5, 10, 15 or 20 years, with
no life contingencies. Options (2) and (3) are also available as a Joint and
Survivor Annuity - payments for your life, and after your death, continuation of
payments to the survivor for life. Annuity benefits (other than the Refund
Certain available only on a fixed basis) are available as a fixed annuity, or as
a variable annuity, where the dollar amount of your payments will depend upon
the investment performance of the Investment Funds. Once you begin receiving
annuity payments, you cannot change your annuity benefit.
3. PURCHASE. You can purchase an Accumulator Certificate with $5,000 or more.
You may add additional amounts of $1,000 or more at any time (subject to certain
restrictions). Subject to certain age restrictions, you may purchase the
baseBUILDER(SM) guaranteed benefit in the form of a Combined Guaranteed Minimum
Death Benefit and Guaranteed Minimum Income Benefit (Plan A). If you do not
elect the combined benefit, the Guaranteed Minimum Death Benefit is provided
under the Certificate at a lower charge (Plan B). Both benefits are discussed
below. You choose the one that best suits your needs.
INCOME MANAGER is a registered service mark and ACCUMULATOR and baseBUILDER are
service marks of The Equitable Life Assurance Society of the United States.
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4. INVESTMENT OPTIONS. You may invest in any or all of the following Investment
Funds, which invest in shares of corresponding portfolios of The Hudson River
Trust (HR TRUST) and EQ Advisors Trust (EQ TRUST). The portfolios are described
in the prospectuses for HR Trust and EQ Trust.
<TABLE>
<CAPTION>
- ---------------------------------------------------------------------------------------------------------------------
EQUITY SERIES
- ---------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
DOMESTIC EQUITY INTERNATIONAL EQUITY AGGRESSIVE EQUITY
Alliance Common Stock Alliance Global Alliance Aggressive Stock
Alliance Growth & Income Alliance International Alliance Small Cap Growth
BT Equity 500 Index BT International Equity Index BT Small Company Index
EQ/Putnam Growth & Income Value Morgan Stanley Emerging Markets MFS Emerging Growth Companies
MFS Research Equity Warburg Pincus Small Company
Merrill Lynch Basic Value Equity T. Rowe Price International Stock Value
T. Rowe Price Equity Income
- ---------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
- ---------------------------------------------------------------------------------------------------------------------
ASSET ALLOCATION SERIES FIXED INCOME SERIES
- ---------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
Alliance Conservative Investors AGGRESSIVE FIXED INCOME DOMESTIC FIXED INCOME
Alliance Growth Investors Alliance High Yield Alliance Intermediate
EQ/Putnam Balanced Government Securities
Merrill Lynch World Strategy Alliance Money Market
- ---------------------------------------------------------------------------------------------------------------------
</TABLE>
You may also invest in one or more GIROs currently maturing in years 1999
through 2008.
[Picture of mature couple]
3
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5. EXPENSES. The Certificate has expenses as follows: There is an annual charge
expressed as a percentage of the Guaranteed Minimum Death Benefit. For Plan A
the percentage is equal to 0.45%. For Plan B the percentage is equal to 0.20%.
As a percentage of assets in the Investment Funds, a daily charge is deducted
for mortality and expense risks at an annual rate of 0.90%; and a daily charge
is deducted for administration expenses at an annual rate of 0.25%.
The charges for the portfolios of HR Trust range from 0.64% to 1.33% of the
average daily net assets of HR Trust portfolios, depending upon HR Trust
portfolios selected. The charges for the portfolios of EQ Trust range from 0.55%
to 1.75% of the average daily net assets of EQ Trust portfolios, depending upon
the EQ Trust portfolios selected. The amounts for HR Trust are based on restated
values during 1996 (as well as an expense cap for the Alliance Small Cap Growth
portfolio) and the amounts for EQ Trust are based on a current expense cap. The
12b-1 fees for the portfolios of HR Trust and EQ Trust are 0.25% of the average
daily net assets of HR Trust and EQ Trust, respectively. Charges for state
premium and other applicable taxes may also apply at the time you elect to start
receiving annuity payments.
A withdrawal charge is imposed as a percentage of each contribution withdrawn in
excess of a free corridor amount, or if the Certificate is surrendered. The free
corridor amount for withdrawals is 15% of the Certificate's value at the
beginning of the year. When applicable, the withdrawal charge is determined in
accordance with the table below, based on the year a contribution is withdrawn.
The year in which we receive your contribution is "Year 1."
Year of Contribution Withdrawal
1 2 3 4 5 6 7 8+
-------------------------------------------------------------
Percentage of
Contribution 7.0% 6.0% 5.0% 4.0% 3.0% 2.0% 1.0% 0.0%
The following chart is designed to help you understand the charges in the
Certificate. The "Total Annual Charges" column shows the combined total of the
Certificate charges deducted as a percentage of assets in the Investment Funds
and the portfolio charges, as shown in the first two columns. The last two
columns show you two examples of the charges, in dollars, that you would pay
under a Certificate, and include the Guaranteed Minimum Death Benefit based
charge for the optional Combined Guaranteed Minimum Death Benefit and Guaranteed
Minimum Income Benefit. The examples assume that you invested $1,000 in a
Certificate which earns 5% annually and that you withdraw your money: (1) at the
end of year 1, and (2) at the end of year 10. For year 1, the Total Annual
Charges are assessed as well as the withdrawal charge. For year 10, the example
shows the aggregate of all the annual charges assessed for the 10 years, but
there is no withdrawal charge. No charges for state premium and other applicable
taxes are assumed in the examples.
4
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<TABLE>
<CAPTION>
EXAMPLES
TOTAL ANNUAL TOTAL ANNUAL TOTAL Total Annual
CERTIFICATE PORTFOLIO ANNUAL Expenses at End of:
INVESTMENT FUND CHARGES CHARGES CHARGES (1) (2)
1 Year 10 Years
<S> <C> <C> <C> <C> <C>
Alliance Conservative Investors 1.15% 0.80% 1.95% $89.74 $275.75
Alliance Growth Investors 1.15% 0.84% 1.99% $90.14 $279.80
Alliance Growth & Income 1.15% 0.85% 2.00% $90.24 $280.80
Alliance Common Stock 1.15% 0.66% 1.81% $88.35 $261.52
Alliance Global 1.15% 0.98% 2.13% $91.53 $293.80
Alliance International 1.15% 1.33% 2.48% $95.01 $328.00
Alliance Aggressive Stock 1.15% 0.83% 1.98% $90.04 $278.79
Alliance Small Cap Growth 1.15% 1.20% 2.35% $93.72 $315.43
Alliance Money Market 1.15% 0.64% 1.79% $88.15 $259.45
Alliance Intermediate
Government Securities 1.15% 0.84% 1.99% $90.14 $279.80
Alliance High Yield 1.15% 0.91% 2.06% $90.84 $286.83
BT Equity 500 Index 1.15% 0.55% 1.70% $87.26 $250.17
BT Small Company Index 1.15% 0.60% 1.75% $87.75 $255.35
BT International Equity Index 1.15% 0.80% 1.95% $89.74 $275.75
MFS Emerging Growth
Companies 1.15% 0.85% 2.00% $90.24 $288.87
MFS Research 1.15% 0.85% 2.00% $90.24 $288.87
Merrill Lynch Basic Value
Equity 1.15% 0.85% 2.00% $90.24 $288.87
Merrill Lynch World Strategy 1.15% 1.20% 2.35% $93.72 $323.50
Morgan Stanley Emerging
Markets Equity 1.15% 1.75% 2.90% $99.19 $375.62
EQ/Putnam Balanced 1.15% 0.90% 2.05% $90.74 $293.88
EQ/Putnam Growth & Income
Value 1.15% 0.85% 2.00% $90.24 $288.87
T. Rowe Price Equity Income 1.15% 0.85% 2.00% $90.24 $288.87
T. Rowe Price International
Stock 1.15% 1.20% 2.35% $93.72 $323.50
Warburg Pincus Small
Company Value 1.15% 1.00% 2.15% $91.73 $303.84
</TABLE>
Total annual portfolio charges may vary from year to year. For Investment Funds
investing in portfolios with less than 10 years of operations, charges have been
estimated. The charges reflect any expense waiver or limitation. For more
detailed information, see the Fee Table in the prospectus.
6. TAXES. In most cases, your earnings are not taxed until distributions are
made from your Certificate. If you are younger than age 59 1/2 when you receive
any distributions, in addition to income tax you may be charged a 10% Federal
tax penalty on the taxable amount received.
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7. ACCESS TO YOUR MONEY. During the accumulation phase, you may receive
distributions under a Certificate through the following WITHDRAWAL OPTIONS: (1)
Lump Sum Withdrawals of at least $1,000 may be taken at any time, and (2)
Systematic Withdrawals, paid monthly, quarterly or annually, subject to certain
restrictions, including a maximum percentage of your Certificate's value. You
also have access to your Certificate's value by surrendering the Certificate.
All or a portion of a withdrawal may be subject to a withdrawal charge to the
extent that the withdrawal exceeds the free corridor amount. A free corridor
amount does not apply to a surrender. Withdrawals and surrenders may be subject
to income tax and a tax penalty. Withdrawals from GIROs prior to their maturity
may result in a market value adjustment.
8. PERFORMANCE. During the accumulation phase, your Certificate's value in the
Investment Funds may vary up or down depending upon the investment performance
of the Investment Funds you have selected. Past performance is not a guarantee
of future results.
9. DEATH BENEFIT. If the annuitant dies before amounts are applied under an
annuity benefit, the named beneficiary will be paid a death benefit. The death
benefit (except in New York ) is equal to (1) your Certificate's value in the
Investment Funds, or if greater, the Guaranteed Minimum Death Benefit, and (2)
the amount of the death benefit provided with respect to GIROs.
The Guaranteed Minimum Death Benefit is equal to a "6% to Age 80 Benefit" for
annuitant ages 20 through 79 at issue of the Certificate. For ages 80 through 83
at issue of the Certificate, the Guaranteed Minimum Death Benefit is a return of
the money you invested in the Investment Funds.
6% to Age 80 Benefit -- We add interest to the initial amount at 6% (3%
for amounts in the Alliance Money Market and Alliance Intermediate
Government Securities Funds) through the annuitant's age 80 (or at the
annuitant's death, if earlier). The 6% interest rate will still apply
for amounts in the Alliance Money Market Fund under the Special Dollar
Cost Averaging program discussed below.
The death benefit with respect to the GIROs is equal to the amounts in the
GIROs, or if greater, the amounts in the GIROs reflecting guaranteed interest,
but not reflecting any increase due to interest rate changes.
The death benefit applicable to Certificates issued in New York is equal to the
amounts in the Investment Funds and the GIROs, or if greater, the Guaranteed
Minimum Death Benefit.
For annuitant ages 20 through 79 at issue of the Certificate, the
Guaranteed Minimum Death Benefit is reset each year through the
annuitant's age 80 to your Certificate's value, if it is higher than
the prior year's Guaranteed Minimum Death Benefit. For ages 80 through
83 at issue of the Certificate, the Guaranteed Minimum Death Benefit is
a return of the money you have invested in the Investment Funds and the
GIROs. The Guaranteed Minimum Death Benefit at the annuitant's death
will never be less than the amounts in the Investment Funds, plus the
amounts in the GIROs reflecting guaranteed interest, but not reflecting
any increase due to interest rate changes.
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10. OTHER INFORMATION.
QUALIFIED PLANS. If the Certificates will be purchased by certain types of plans
qualified under Section 401(a), or 401(k) of the Internal Revenue Code, please
consult your tax adviser first. Any discussion of taxes in this profile does not
apply.
BASEBUILDER BENEFIT (PLAN A). The baseBUILDER (available for annuitant ages 20
through 75 at issue of the Certificates) is an optional benefit that combines
the Guaranteed Minimum Income Benefit and the Guaranteed Minimum Death Benefit.
A baseBUILDER benefit (which is different from the one described below) may be
available for annuitant issue ages 76 and older. The baseBUILDER benefit is
currently not available in New York.
Income Benefit - The Guaranteed Minimum Income Benefit, as part of the
baseBUILDER, provides a minimum amount of guaranteed lifetime income
for your future. When you are ready to convert (at specified future
times), your Certificate's value to the Income Manager (Life Annuity
with a Period Certain) payout annuity certificate the amount of
lifetime income that will be provided will be the greater of (i) your
Guaranteed Minimum Income Benefit or (ii) your Certificate's current
value applied at current annuity purchase factors. Investment
performance is not guaranteed. The Guaranteed Minimum Income Benefit
provides a safety net for your future.
Death Benefit - As part of the baseBUILDER, a Guaranteed Minimum Death
Benefit is provided which is the 6% to Age 80 Benefit described in
"Death Benefit" above.
FREE LOOK. You can examine the Certificate for a period of 10 days after you
receive it, and return it to us for a refund. The free look period is longer in
some states.
Your refund will equal your Certificate's value, reflecting any investment gain
or loss, in the Investment Funds, and any increase or decrease in the value of
any amounts held in the GIROs, through the date we receive your Certificate.
Some states may require that we calculate the refund differently.
PRINCIPAL ASSURANCE. This option is designed to assure the return of your
original amount invested on a GIRO maturity date, by putting a portion of your
money in a particular GIRO, and the balance in the Investment Funds in any way
you choose. Assuming that you make no transfers or withdrawals of the portion in
the GIRO, such amount will grow to your original investment upon maturity.
DOLLAR COST AVERAGING. Special Dollar Cost Averaging - You can elect when you
apply for your Certificate to allocate your contribution to the Alliance Money
Market Fund and have it transferred from the Alliance Money Market Fund into the
other Investment Funds on a monthly basis over the first twelve months, during
which time the mortality and expense risks and administration charges will not
be deducted from the Alliance Money Market Fund. General Dollar Cost Averaging -
You can elect at any time to put money into the Alliance Money Market Fund and
have a dollar amount or percentage transferred from the Alliance Money Market
Fund into the other Investment Funds on a periodic basis over a longer period of
time, and all applicable Certificate charges deducted from the Alliance Money
Market Fund will apply. Dollar cost averaging does not assure a profit or
protect against a loss should market prices decline.
REBALANCING. You can have your money automatically readjusted among the
Investment Funds quarterly, semi-annually or annually in order to retain the
investment percentage allocations you select. Rebalancing does not assure a
profit or protect against a loss should market prices decline and should be
reviewed periodically, as your needs may change.
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10. OTHER INFORMATION (CONTINUED)
REPORTS. We will provide you with an annual statement of your Certificate's
values as of the last day of each year, and three additional reports of your
Certificate's values each year. You also will be provided with written
confirmations of each financial transaction, and copies of annual and
semi-annual statements of HR Trust and EQ Trust.
You may call toll-free at 1-800-789-7771 for a recording of daily Investment
Fund values and guaranteed rates applicable to GIROs.
11. INQUIRIES. If you need more information, please contact your agent. You may
also contact us at:
The Equitable Life Assurance Society of the United States
Income Management Group
P.O. Box 1547
Secaucus, NJ 07096-1547
Telephone 1-800-789-7771 and Fax 1-201-583-2224
[Equitable Logo]
[Picture of fountain pen and calendar]
THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES
Income Management Group, 1290 Avenue of the Americas, New York, New York 10104
(C)1997 The Equitable Life Assurance Society of the United States,
All rights reserved.
IM-95-02 PROS(1/98)
CAT. NO. 127134
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