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LIFESTAGES(R) VARIABLE ANNUITY
INVESTING IN
NYLIAC VARIABLE ANNUITY SEPARATE ACCOUNT-III
SUPPLEMENT DATED MAY 23, 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 20 and 21, the second paragraph under the section "Qualified
and Non-Qualified Policies" is changed to read as follows:
If you are considering a Qualified Policy, you should be aware that
this annuity will fund a retirement plan that already provides tax deferral
under the Internal Revenue Code. In such situations, the tax deferral of
the annuity does not provide additional benefits. In addition, you should
be aware that there are fees and charges in an annuity that may not be
included in other types of investments which may be more or less costly.
However, the fees and charges under the policies are designed to provide
for certain payment guarantees and features other than tax deferral that
may not be available in other investments. They include:
(1) a Fixed Account option, which features a guaranteed fixed
interest rate;
(2) a death benefit that is payable should you die while the policy
is in force, which is reset every three years (every year for
applications signed on or after 5/19/2000 in states where
approved) and is guaranteed to be at least the amount of your
premium payments, less any outstanding loan balance, partial
withdrawals and surrender charges;
(3) the option for your Beneficiary to receive a guaranteed amount
of monthly income for his or her lifetime should you die prior
to the Annuity Commencement Date;
(4) the option to receive a guaranteed amount of monthly income for
life after the first Policy Year; and
(5) two riders (an Unemployment Benefit Rider and a Living Needs
Benefit Rider), which allow you to withdraw money from your
policy without the imposition of surrender charges, subject to
the terms of each rider.
2. On page 26, the first paragraph under the section "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.
3. On page 33, the paragraph under (a) Interest Crediting under the section
"The Fixed Account" is changed to read as follows:
a) Interest Crediting
NYLIAC guarantees that it will credit interest at an effective rate of
at least 3% to amounts allocated or transferred to the Fixed Account under
the policies. We credit interest on a daily basis. NYLIAC may, at its sole
discretion, credit a higher rate or rates of interest to amounts allocated
or transferred to the Fixed Account. Interest rates will be set on the
anniversary of each payment or transfer. All premium payments and
additional amounts (including transfers from other Investment Divisions)
allocated to the Fixed Account, plus prior interest earned on such amounts,
will receive their applicable interest rate for one-year periods from the
anniversary on which the allocation or transfer was made.
New York Life Insurance and Annuity Corporation
(A Delaware Corporation)
51 Madison Avenue
New York, New York 10010
