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MAINSTAY PLUS VARIABLE ANNUITY
INVESTING IN
NYLIAC VARIABLE ANNUITY SEPARATE ACCOUNT-III
SUPPLEMENT DATED MAY 22, 2000 TO PROSPECTUS DATED MAY 1, 2000
This supplement provides information that you should know before you invest
in the policies. You should 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.
1. On pages 6 and 7, certain numbers in the Fee Table for the following
Investment Divisions are changed to read as follows:
FEE TABLE--(CONTINUED)
NYLIAC VARIABLE ANNUITY SEPARATE ACCOUNT-III
<TABLE>
<CAPTION>
ALGER JANUS
AMERICAN CALVERT FIDELITY FIDELITY VIP ASPEN
SMALL SOCIAL VIP II EQUITY- SERIES
CAPITALIZATION BALANCED CONTRAFUND(R) INCOME BALANCED
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<S> <C> <C> <C> <C> <C>
OWNER TRANSACTION EXPENSES
Surrender Charge (as a % of amount 7% during Payment Years 1-3; 6% during Payment Year 4; 5% during
withdrawn)........................... Payment Year 5; 4% during Payment Year 6; and 0% thereafter.
Transfer Fee........................... There is no transfer fee on the first 12 transfers in any Policy
Year. However, NYLIAC reserves the right to charge up to $30 for
each transfer in excess of 12 transfers per Policy Year.
Annual Policy Service Charge........... Lesser of $30 per policy or 2% of the Accumulation Value, for
policies with less than $20,000 of Accumulation Value.
Investment Protection Plan Rider Charge Maximum annual charge of 1% of the amount that is guaranteed.
(optional)...........................
Rider Risk Charge Adjustment Maximum charge of 2% of the amount that is guaranteed for
(optional)........................... cancellation of the Investment Protection Plan.
SEPARATE ACCOUNT ANNUAL EXPENSES
(as a % of average account value)
Mortality and Expense Risk Fees........ 1.25% 1.25% 1.25% 1.25% 1.25%
Administration Fees.................... 0.15% 0.15% 0.15% 0.15% 0.15%
Total Separate Account Annual
Expenses............................. 1.40% 1.40% 1.40% 1.40% 1.40%
FUND ANNUAL EXPENSES AFTER REIMBURSEMENT
(as a % of average net assets for the
fiscal year ended
December 31, 1999)(a)
Advisory Fees.......................... 0.85% 0.70%(c) 0.58% 0.48% 0.65%
Administration Fees.................... -- -- -- -- --
Other Expenses......................... 0.05% 0.19%(c) 0.07% 0.08% 0.02%
Total Fund Annual Expenses............. 0.90% 0.89%(c) 0.65%(d) 0.56%(d) 0.67%(e)
</TABLE>
<TABLE>
<CAPTION>
JANUS ASPEN MFS(R)
SERIES GROWTH MFS(R) MORGAN STANLEY T. ROWE PRICE VAN ECK
WORLDWIDE WITH INCOME RESEARCH UIF EMERGING EQUITY WORLDWIDE
GROWTH SERIES SERIES MARKETS EQUITY INCOME HARD ASSETS
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<S> <C> <C> <C> <C> <C> <C>
OWNER TRANSACTION EXPENSES
Surrender Charge (as a % of amount 7% during Payment Years 1-3; 6% during Payment Year 4; 5% during Payment Year 5; 4%
withdrawn)........................... during Payment Year 6; and 0% thereafter.
Transfer Fee........................... There is no transfer fee on the first 12 transfers in any Policy Year. However,
NYLIAC reserves the right to charge up to $30 for each transfer in excess of 12
transfers per Policy Year.
Annual Policy Service Charge........... Lesser of $30 per policy or 2% of the Accumulation Value, for policies with less
than $20,000 of Accumulation Value.
Investment Protection Plan Rider Charge Maximum annual charge of 1% of the amount that is guaranteed.
(optional)...........................
Rider Risk Charge Adjustment Maximum charge of 2% of the amount that is guaranteed for cancellation of the
(optional)........................... Investment Protection Plan.
SEPARATE ACCOUNT ANNUAL EXPENSES
(as a % of average account value)
Mortality and Expense Risk Fees........ 1.25% 1.25% 1.25% 1.25% 1.25% 1.25%
Administration Fees.................... 0.15% 0.15% 0.15% 0.15% 0.15% 0.15%
Total Separate Account Annual
Expenses............................. 1.40% 1.40% 1.40% 1.40% 1.40% 1.40%
FUND ANNUAL EXPENSES AFTER REIMBURSEMENT
(as a % of average net assets for the
fiscal year ended
December 31, 1999)(a)
Advisory Fees.......................... 0.65% 0.75% 0.75% 0.42% 0.85%(g) 1.00%
Administration Fees.................... -- -- -- 0.25% -- --
Other Expenses......................... 0.05% 0.13% 0.11% 1.12% -- 0.26%
Total Fund Annual Expenses............. 0.70%(e) 0.88% 0.86% 1.79%(f) 0.85% 1.26%
</TABLE>
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(a) The Fund or its agents provided the fees and charges which are based on
1999 expenses and may reflect estimated charges, except for Janus. We have
not verified the accuracy of the information provided by the agents.
(c) "Other Expenses" reflect an indirect fee. Net fund operating expenses
after reductions for fees paid indirectly would be 0.86% for Social
Balanced Portfolio. Total expenses have been restated to reflect expenses
expected to be incurred in 2000.
(d) Through arrangements with certain funds or FMR on behalf of certain funds'
custodian, credits realized as a result of uninvested cash balances were
used to reduce a portion of each applicable fund's expenses. Without these
reductions, total operating expenses
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presented in the table would have been 0.67% for the Fidelity VIP II
Contrafund(R) Portfolio and 0.57% for the Fidelity VIP Equity-Income
Portfolio.
(e) Expenses are based upon expenses for the fiscal year ended December 31,
1999, restated to reflect a reduction in the management fee for Worldwide
Growth and Balanced portfolios. Expenses are stated both with and without
contractual waivers by Janus Capital. Waivers, if applicable, are first
applied against the management fee and then against other expenses, and
will continue until at least the next annual renewal of the advisory
agreement. All expenses are shown without the effect of any expense offset
arrangements.
(f) Morgan Stanley Asset Management has voluntarily agreed to waive its
"Advisory Fees" and/or reimburse the Portfolio, if necessary, to the
extent that the "Total Fund Annual Expenses" of the Portfolio exceeds
1.75% of average daily net assets. For purposes of determining the amount
of the voluntary advisory fee waiver and/or reimbursement, if any, the
portfolio's annual operating expenses include certain investment related
expenses such as foreign country tax expense and interest expense on
amounts borrowed which were 0.04% of the average daily net assets for
1999. The fee waivers and reimbursements described above may be terminated
by Morgan Stanley Asset Management at any time without notice. Absent such
reductions, "Advisory Fees," "Administration Fees" and "Total Fund Annual
Expenses" would have been 1.25%, 0.25% and 2.62% respectively.
(g) The "Advisory Fees" include the ordinary operating expenses of the Fund.
2. On page 28, the first paragraph under Surrender Charges is changed to
read as follows. Please note that this change is being made only for the purpose
of clarifying the text. No changes are being made to either the amount of the
surrender charge or the method used for its calculation.
Since no deduction for a sales charge is made from premium payments,
we impose a surrender charge on certain partial withdrawals and surrenders
of the policies. The surrender charge covers certain expenses relating to
the sale of the policies, including commissions to registered
representatives and other promotional expenses. We measure the surrender
charge as a percentage of the amount withdrawn or surrendered. The
surrender charge may apply to amounts applied under certain Income Payment
options.
New York Life Insurance and Annuity Corporation
(A Delaware Corporation)
51 Madison Avenue
New York, New York 10010
