<PAGE> 1
As filed with the Securities and Exchange Commission on September 26, 2000
Registration No. 811-08904
033-87382
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C.
Form N-4
REGISTRATION STATEMENT UNDER THE SECURITIES ACT OF 1933
Pre-Effective Amendment No. ____ ( )
Post-Effective Amendment No. 10 ( X )
and
REGISTRATION STATEMENT UNDER THE
INVESTMENT COMPANY ACT OF 1940
Amendment No. 15 ( X )
NYLIAC VARIABLE ANNUITY SEPARATE ACCOUNT-III
(Exact Name of Registrant)
NEW YORK LIFE INSURANCE AND
ANNUITY CORPORATION
(Name of Depositor)
51 Madison Avenue, New York, New York 10010
(Address of Depositor's Principal Executive Office)
Depositor's Telephone Number: (212) 576-7000
Linda M. Reimer, Esq.
New York Life Insurance and Annuity Corporation
51 Madison Avenue
New York, New York 10010
(Name and Address of Agent for Service)
Copy to:
<TABLE>
<S> <C>
Richard T. Choi, Esq. Sheila K. Davidson, Esq.
Freedman, Levy, Kroll & Simonds Senior Vice President
1050 Connecticut Avenue and General Counsel
Suite 825 New York Life Insurance Company
Washington, D.C. 20036 51 Madison Avenue
New York, New York 10010
</TABLE>
Approximate Date of Proposed Public Offering: Continuous.
It is proposed that this filing will become effective (check appropriate box)
/ / immediately upon filing pursuant to paragraph (b) of Rule 485.
/X/ on October 9, 2000 pursuant to paragraph (b) of Rule 485.
/ / 60 days after filing pursuant to paragraph (a)(1) of Rule 485.
/ / on (date) pursuant to paragraph (a)(1) of Rule 485.
If appropriate, check the following box:
[ ] This post-effective amendment designates a new effective date for a
previously filed post-effective amendment.
Title of Securities Being Registered
Units of interest in a separate account under variable annuity contracts.
<PAGE> 2
Explanatory Note
Registrant is filing this post-effective amendment ("Amendment") for the purpose
of (i) adding a supplement to the prospectus for the LifeStages(R) Variable
Annuity policies ("Policies") contained in the registration statement to
describe a new optional Investment Protection Plan Rider ("Rider") available
under Policies issued on or after the effective date of the Amendment, and (ii)
adding an exhibit related to such Rider. The Rider is identical to the
Investment Protection Plan Rider available under MainStay Plus Policies
described in the currently effective prospectus for such policies contained in
the registration statement. The Amendment is not intended to amend or delete any
part of the Registration Statement, except as specifically noted herein.
<PAGE> 3
LifeStages(R) Variable Annuity
Investing in
NYLIAC Variable Annuity Separate Account-III
Supplement Dated October 9, 2000 to Prospectus dated May 1, 2000
This supplement amends the May 1, 2000 prospectus for the LifeStages(R) Variable
Annuity policies ("policies"). Please read this supplement carefully and retain
it for future reference. This supplement is not valid unless it is accompanied
by a current prospectus for the policies. The terms we use in this supplement
have the same meanings as in the prospectus for the policies.
This supplement describes the Investment Protection Plan Rider now available (in
states where approved) with the Life Stages(R) Variable Annuity policies offered
by New York Life Insurance and Annuity Corporation. In Oregon, the Rider will be
called the "Accumulation Value Protection Plan Rider." The Investment Protection
Plan Rider is available with policies issued on or after the date of this
supplement. Accordingly, for policies issued on or after the date of this
supplement, the prospectus is amended in the following respects:
On pages 4 - 5 of the prospectus, add the following at the end of sections
entitled "OWNER TRANSACTION EXPENSES" in the FEE TABLE:
<TABLE>
<S> <C>
Investment Protection Plan Maximum annual charge of 1% of
Rider Charge (optional) the amount that is guaranteed.
Rider Risk Charge Maximum charge of 2% of the
Adjustment (optional) amount that is guaranteed for
cancellation of the Investment
Protection Plan Rider.
</TABLE>
On page 6 of the prospectus, replace the third sentence in the first paragraph
under the heading "EXAMPLES" with the following:
However, the table does not reflect the charges for the optional Investment
Protection Plan Rider, which would add a maximum of $10.00 per year for
each year that the rider is in effect. If you cancel the rider at any time
prior to surrendering the policy, a one-time charge of up to $20.00 would
apply to the extent permitted by state law.
On page 9 of the prospectus, add the following after the sixth paragraph under
the heading "4. WHAT CHARGES ARE ASSESSED AGAINST THE POLICY?":
If you select the Investment Protection Plan Rider (in states where
available), we will deduct a charge on each policy quarter, based on the
amount that is guaranteed. (See "Other Charges--Investment Protection Plan
Rider Charge" at page 27). The maximum annual charge for this feature is 1%
of the amount that is guaranteed. To the extent permitted by state law, we
may deduct a charge from your Accumulation Value if you cancel the
Investment Protection Plan Rider. We call this charge a Rider Risk Charge
Adjustment. (See "Other Charges--Rider Risk Charge Adjustment" at page 27).
The maximum Rider Risk Charge Adjustment is 2% of the amount that is
guaranteed. We set both of these charges at our sole discretion, subject to
the stated maximums. You should consult with your registered representative
to determine the percentages we are currently charging before you select
the Investment Protection Plan Rider. We will not increase either of these
charges after the date the rider becomes effective for the Investment
Protection Plan.
On page 27 of the prospectus, add the following after the section (d) FUND
CHARGES:
(e) Investment Protection Plan Rider Charge (optional)
If you select the Investment Protection Plan Rider (in states where
available), we will deduct a charge on the first Business Day on each
<PAGE> 4
quarter that the rider is in effect based on the amount that is guaranteed.
We will deduct this charge beginning with the first policy quarter after
the effective date of the rider. (See "Riders--Investment Protection Plan
Rider" at page 33). We will deduct the charge from each Allocation
Alternative and each DCA Advantage Plan Account in proportion to its
percentage of the Accumulation Value on the first Business Day of the
applicable policy quarter.
The maximum annual charge is 1% of the amount that is guaranteed. We
may set a lower charge at our sole discretion. You should check with your
registered representative to determine the percentage we are currently
charging before you select this feature.
If you reset the amount that is guaranteed, a new charge for the rider
will apply. This charge may be more or less than the charge currently in
effect on your policy, but will never exceed the stated maximum. The charge
in effect on the effective date of the rider or on the effective date of
any reset will not change after the date the rider becomes effective. We
will continue to deduct the current charge until the first policy quarter
following the effective date of the reset.
(f) Rider Risk Charge Adjustment (optional)
If you cancel the Investment Protection Plan Rider, to the extent
permitted by state law, we will deduct a Rider Risk Charge Adjustment from
your Accumulation Value. The cancellation will be effective on the date we
receive your request. (See "Riders--Investment Protection Plan Rider" at
page 33). We will deduct the Rider Risk Charge Adjustment from each
Allocation Alternative and each DCA Advantage Plan Account in proportion to
its percentage of the Accumulation Value on that day. We will not deduct
this charge if you surrender your policy. However, surrender charges may
apply.
We will not change the charge adjustment for a particular policy once
it is set on the date the rider takes effect. The maximum Rider Risk Charge
Adjustment is 2% of the amount that is guaranteed. We may set a lower
charge at our sole discretion. You should check with your registered
representative to determine the percentage we are currently charging before
you select this Rider.
If you reset the amount that is guaranteed, a new Rider Risk Charge
Adjustment may apply. This charge may be more or less than the charge
currently in effect on your policy, but will never exceed the stated
maximum. The adjustment charge in effect on the effective date of the rider
or on the effective date of any reset will not increase after the rider is
issued or reset.
On page 33 of the prospectus, replace the first paragraph under the heading
"RIDERS" with the following:
We include two riders under the policy at no additional charge: an
Unemployment Benefit Rider, for Non-Qualified, IRA and Roth IRA policies,
and a Living Needs Benefit Rider, for all types of policies. These first
two riders described below provide for an increase in the amount that can
be withdrawn from your policy which will not be subject to a surrender
charge upon the happening of certain qualifying events. Another rider, the
Investment Protection Plan, is available at an additional cost. The riders
are only available in those states where they have been approved. Please
consult with your registered representative regarding the availability of
these riders in your state.
On page 33 of the prospectus, add the following after the section "(b)
Unemployment Benefit Rider":
(c) Investment Protection Plan Rider (optional)
<PAGE> 5
THE INVESTMENT PROTECTION PLAN RIDER IS AVAILABLE ONLY IN STATES WHERE
APPROVED. If you select this rider, you will be able to surrender the
policy and receive the greater of the policy Accumulation Value or the
amount that is guaranteed under the rider. While this rider is in effect,
we will deduct a charge from your Accumulation Value on each policy
quarter. (See "Other Charges--Investment Protection Plan Rider Charge" at
page 27). When you make a partial withdrawal, we will reduce the amount
that is guaranteed under the rider by the amount of the proportional
withdrawal. The proportional withdrawal is equal to the amount withdrawn
from the policy (including any amount withdrawn for the surrender charge)
divided by the Accumulation Value immediately preceding the withdrawal,
multiplied by the amount that is guaranteed immediately preceding the
withdrawal.
The amount that is guaranteed under the rider will depend on when
you select or reset it:
(i) At the time of application: The amount that is guaranteed will
equal the initial premium payment plus any additional premium payments
we receive in the first Policy Year, less all proportional withdrawals.
Premium payments made after the first Policy Year will not be included
in the amount that is guaranteed. The rider will take effect on the
Policy Date.
(ii) While the policy is in force: The amount that is guaranteed will
equal the Accumulation Value on the date the rider takes effect, less
all proportional withdrawals. The rider will take effect on the next
Policy Anniversary following the date we receive your application for
the rider.
(iii) Resetting the guaranteed amount: You may request to reset the
amount that is guaranteed at any time while the rider is in effect. The
reset will take effect on the Policy Anniversary immediately following
the date we receive your request to reset. The amount that is
guaranteed will equal the Accumulation Value on the next Policy
Anniversary, less all proportional withdrawals. We will also reset a
new charge for the rider and the Rider Risk Charge Adjustment on that
Policy Anniversary. (See "Other Charges--Investment Protection Plan
Rider Charge" and "Other Charges--Rider Risk Charge Adjustment" at page
27).
In Oregon, where this rider is called the Accumulation Value Protection
Plan, the amount guaranteed is computed in the same manner described above.
You will be eligible to receive the benefit under this rider beginning
on the tenth Policy Anniversary after the later of (1) the effective date
of the rider or (2) the effective date of any reset. You may also exercise
this benefit on any Policy Anniversary subsequent to the tenth. To exercise
this benefit, you must send us a written request to surrender the policy no
later than ten Business Days after the applicable Policy Anniversary.
Amounts paid to you under the terms of this rider may be taxable and you
may be subject to a 10% tax penalty if paid before you reach age 59 1/2.
You may cancel this rider within 30 days after delivery of the rider
or, if you selected this feature at the time of application, within 30 days
after delivery of the policy. You must return the rider to us or to the
registered representative through whom it was purchased, with a written
request for cancellation. Upon receipt of this request, we will promptly
cancel the rider and refund any Investment Protection Plan Rider charge
which may have been deducted. After this 30-day period, you still have the
right to discontinue the rider. However, to the extent permitted by state
law, we will deduct a Rider Risk Charge Adjustment from your Accumulation
Value and we will not refund any Investment Protection Plan Rider charge
which may have been deducted. (See "Other Charges--Rider Risk Charge
Adjustment" at page 27). The cancellation will be effective on the date we
receive your request.
This rider is available on all Non-Qualified and Roth IRA policies so
long as the first date that you can exercise and receive benefits under the
rider is before the Annuity Commencement Date. The rider is also available
on IRA and
<PAGE> 6
SEP-IRA policies if the policy owner is younger than age 66 on the date the
rider takes effect.
Because this rider generally provides protection against decreases in
the policy's Accumulation Value due to negative investment performance,
this rider may not be a benefit to you if all or most of your Accumulation
Value is allocated to the Fixed Account. You should select this rider only
if you have or intend to have most or all of your Accumulation Value
allocated to the Investment Divisions.
This rider will provide no benefit if you surrender the policy before
the Policy Anniversary on which you are eligible to exercise the rider.
Therefore, you should select this rider only if you intend to keep the
policy for at least ten years.
We have set forth below an example of how the benefit of this rider
may be realized and how partial withdrawals will impact the guaranteed
amount. In this example, we have assumed the following:
(1) the rider is selected at the time of application;
(2) an initial premium payment of $100,000 is made;
(3) no additional premium payments are made;
(4) a withdrawal of $20,000 is made in the eighth Policy Year;
(5) the Accumulation Value immediately preceding the withdrawal has
decreased to $80,000; and
(6) the Accumulation Value on the tenth Policy Year has decreased to
$50,000.
The guaranteed amount at time of application was $100,000. When the
partial withdrawal was made in the eighth Policy Year, we reduced the
guaranteed amount by the amount of the proportional withdrawal. We
calculated the amount of the proportional withdrawal by taking the
requested withdrawal amount, dividing it by the Accumulation Value
immediately preceding the withdrawal, and then multiplying that number by
the guaranteed amount immediately preceding the withdrawal.
Proportional withdrawal = ($20,000/$80,000) x $100,000 = $25,000
To determine the new guaranteed amount after the withdrawal, we
subtracted the amount of the proportional withdrawal from the initial
guaranteed amount: ($100,000 - $25,000) = $75,000. If this policy is
surrendered in the tenth Policy Year, the policy owner receives $75,000
even though the Accumulation Value has decreased to $50,000.
<PAGE> 7
PART C
Part C is hereby amended to include the following exhibits:
Item 24(b). EXHIBITS
(4)(d) Investment Protection Plan Rider to Specimen Policy for
LifeStages(R) Variable Annuity - Filed herewith.
<PAGE> 8
SIGNATURES
As required by the Securities Act of 1933 and the Investment Company Act of
1940, the Registrant certifies that it meets the requirements of Securities Act
Rule 485(b) for effectiveness of this amended Registration Statement and has
caused this amended Registration Statement to be signed on its behalf by the
undersigned, thereunto duly authorized, all in the City and State of New York on
this 25th day of September, 2000.
NYLIAC VARIABLE ANNUITY
SEPARATE ACCOUNT-III
(Registrant)
By: /s/ DAVID J. KRYSTEL
-----------------------------
David J. Krystel
Vice President
NEW YORK LIFE INSURANCE AND
ANNUITY CORPORATION
(Depositor)
By: /s/ DAVID J. KRYSTEL
-----------------------------
David J. Krystel
Vice President
As required by the Securities Act of 1933, this amended Registration Statement
has been signed by the following persons in the capacities and on the date
indicated.
<TABLE>
<S> <C>
Howard I. Atkins* Executive Vice President and Director
(Principal Financial Officer)
Frank M. Boccio* Director
John A. Cullen* Vice President and Controller (Principal
Accounting Officer)
Michael G. Gallo* Director
Solomon Goldfinger* Director
Phillip J. Hildebrand* Director
Richard M. Kernan, Jr.* Director
Robert D. Rock* Senior Vice President and Director
Frederick J. Sievert* President and Director (Principal Executive
Officer)
Seymour Sternberg* Director
George J. Trapp* Director
*By: /s/ DAVID J. KRYSTEL
-------------------------
David J. Krystel
Attorney-in-Fact
September 25, 2000
</TABLE>
<PAGE> 9
EXHIBIT INDEX
<TABLE>
<CAPTION>
Exhibit
Number Description
------- -----------
<S> <C>
(4)(d) Investment Protection Plan Rider to the Specimen Policy for the
LifeStages(R) Variable Annuity
</TABLE>
