Registration No. 33-89510
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SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
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POST EFFECTIVE AMENDMENT NO. 11
TO
FORM S-3
REGISTRATION STATEMENT UNDER THE SECURITIES ACT OF 1933
The Equitable Life Assurance Society of the United States
(Exact name of registrant as specified in its charter)
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New York
(State or other jurisdiction of incorporation or organization)
13-5570651
(I.R.S. Employer Identification No.)
1290 Avenue of the Americas, New York, New York 10104
(212)554-1234
(Address, including zip code, and telephone number, including area code,
of registrant's principal executive offices)
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ROBIN WAGNER
VICE PRESIDENT AND COUNSEL
The Equitable Life Assurance Society of the United States
1290 Avenue of the Americas, New York, New York 10104
(212)554-1234
(Name, address, including zip code, and telephone number,
including area code, of agent for service)
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Please send copies of all communications to:
PETER E. PANARITES, ESQ.
Foley & Lardner
Washington Harbour
3000 K Street, Northwest
Washington, D.C. 20007
EQUI-VEST(R)
Employer-Sponsored Retirement Programs
PROSPECTUS DATED MAY 1, 2002
Please read and keep this prospectus for future reference. It contains
important information that you should know before purchasing or taking any
other action under your contract. Also, at the end of this prospectus you will
find attached the prospectuses for each Trust, which contain important
information about their portfolios.
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WHAT IS EQUI-VEST(R)?
EQUI-VEST(R) is a deferred annuity contract issued by THE EQUITABLE LIFE
ASSURANCE SOCIETY OF THE UNITED STATES. It provides for the accumulation of
retirement savings and for income. The contract also offers death benefit
protection and a number of payout options. You invest to accumulate value on a
tax-deferred basis in one or more of our variable investment options and our
guaranteed interest option or in our fixed maturity options ("investment
options"). Each of these contracts may not currently be available in all
states.
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VARIABLE INVESTMENT OPTIONS
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FIXED INCOME
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o AXA Premier VIP Core Bond* o EQ/Alliance Quality Bond
o EQ/Alliance Intermediate Government o EQ/High Yield(1)
Securities o EQ/J.P. Morgan Core Bond
o EQ/Alliance Money Market
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DOMESTIC STOCKS
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o AXA Premier VIP Health Care* o EQ/Calvert Socially Responsible
o AXA Premier VIP Large Cap Core o EQ/Capital Guardian Research
Equity* o EQ/Capital Guardian U.S. Equity
o AXA Premier VIP Large Cap Growth* o EQ/Equity 500 Index
o AXA Premier VIP Large Cap Value* o EQ/Evergreen Omega
o AXA Premier VIP Small/Mid Cap o EQ/FI Mid Cap
Growth* o EQ/FI Small/Mid Cap Value
o AXA Premier VIP Small/Mid Cap Value* o EQ/Janus Large Cap Growth
o AXA Premier VIP Technology* o EQ/Lazard Small Cap Value
o EQ/Aggressive Stock o EQ/Marsico Focus*
o EQ/Alliance Common Stock o EQ/Mercury Basic Value Equity
o EQ/Alliance Growth and Income o EQ/MFS Emerging Growth Companies
o EQ/Alliance Premier Growth o EQ/MFS Investors Trust
o EQ/Alliance Small Cap Growth o EQ/MFS Research
o EQ/Alliance Technology o EQ/Putnam Growth & Income Value
o EQ/AXP New Dimensions** o EQ/Putnam Voyager(2)
o EQ/AXP Strategy Aggressive** o EQ/Small Company Index
o EQ/Bernstein Diversified Value
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INTERNATIONAL STOCKS
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o AXA Premier VIP International Equity* o EQ/Emerging Markets Equity
o EQ/Alliance Global o EQ/International Equity Index
o EQ/Alliance International o EQ/Putnam International Equity
o EQ/Capital Guardian International
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BALANCED/HYBRID
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o EQ/Alliance Growth Investors o EQ/Balanced
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(1) Formerly named, "EQ/Alliance High Yield."
* Subject to state availability.
(2) Formerly named, "EQ/Putnam Investors Growth"
* Subject to state availability.
** Subject to shareholder approval, we anticipate that the EQ/AXP New
Dimensions and the EQ/AXP Strategy Aggressive investment options (the
"replaced options") will be merged into the EQ/Capital Guardian U.S. Equity
and the EQ/Alliance Small Cap Growth investment options (the "surviving
options"), respectively, on or about July 12, 2002. After the merger, the
replaced options will no longer be available and any allocation elections to
either of them will be considered as allocation elections to the applicable
surviving option. We will notify you if the replacements do not take place.
You allocate amounts to the variable investment options, under your choice of
investment method subject to any restrictions. Each variable investment option
is a subaccount of Separate Account A. Each variable investment option, in
turn, invests in a corresponding securities portfolio ("portfolio") of either
Class IA/A or IB/B shares of EQ Advisors Trust or AXA Premier VIP Trust (the
"Trusts"). Your investment results in a variable investment option will depend
on the investment performance of the related portfolio.
GUARANTEED INTEREST OPTION. You may allocate amounts to the guaranteed interest
option. This option is part of our general account and pays interest at
guaranteed rates.
FIXED MATURITY OPTIONS. You may allocate amounts to one or more fixed maturity
options. These amounts will receive a fixed rate of interest for a specified
period. Interest is earned at a guaranteed rate set by us. We make a market
value adjustment (up or down) if you make transfers or withdrawals from a fixed
maturity option before its maturity date. Fixed maturity options may not be
available in your state. Check with your financial professional regarding
availability.
Registration statements relating to this offering have been filed with the
Securities and Exchange Commission ("SEC"). The statement of additional
information ("SAI") dated May 1, 2002, is a part of the registration
statements. The SAI is available free of charge. You may request one by writing
to our processing office or calling 1 (800) 628-6673. The SAI has been
incorporated by reference into this prospectus. This prospectus and the SAI can
also be obtained from the SEC's Web site at http://www.sec.gov. The table of
contents for the SAI appears at the back of this prospectus.
TYPES OF CONTRACTS. We offer different "series" of contracts for use as:
Employer funded traditional Individual retirement annuities ("IRAs"):
o A simplified employee pension plan ("SEP") sponsored by an employer.
o SEPs funded by salary reduction arrangements ("SARSEPs") for plans
established by employers before January 1, 1997. Although we still issue
these contracts to employees whose employer's plans enrolled on this basis,
plans of this type are no longer available under EQUI-VEST(R) to new
employer groups without existing plans.
o SIMPLE IRAs funded by employee salary reduction and employer contributions.
Other employer-sponsored contracts:
o Trusteed contracts to fund defined contribution "HR-10" or "Keogh" plans of
employers who are sole proprietorships, partnerships, or business trusts, or
plans of corporations including non-profit organizations and states or local
governmental entities.
o An Internal Revenue Code Section 403(b) Tax-Sheltered Annuity (basic "TSA")
for public schools and nonprofit entities under Internal Revenue Code
Section 501(c)(3).
o A TSA annuity issued to participants of TSA plans generally sponsored by
universities ("University TSA") that prohibits loans and has restrictions
not included in a basic TSA.
o To fund Internal Revenue Code Section 457 employee deferred compensation
("EDC") plans of state and municipal governments and other tax-exempt
organizations.
o Annuitant-Owned contracts to fund defined contribution HR-10 or Keogh plans.
Minimum contribution amounts of $20 may be made under the contract.
THE SEC HAS NOT APPROVED OR DISAPPROVED THESE SECURITIES OR DETERMINED IF THIS
PROSPECTUS IS ACCURATE OR COMPLETE. ANY REPRESENTATION TO THE CONTRARY IS A
CRIMINAL OFFENSE. THE CONTRACTS ARE NOT INSURED BY THE FDIC OR ANY OTHER
AGENCY. THEY ARE NOT DEPOSITS OR OTHER OBLIGATIONS OF ANY BANK AND ARE NOT BANK
GUARANTEED. THEY ARE SUBJECT TO INVESTMENT RISKS AND POSSIBLE LOSS OF
PRINCIPAL.
X00280
Contents of this prospectus
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EQUI-VEST(R)
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Index of key words and phrases 4
Who is Equitable Life? 6
How to reach us 7
EQUI-VEST(R) employer-sponsored retirement programs
at a glance -- key features 9
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FEE TABLE 11
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Examples: EQUI-VEST(R) series 300 14
Examples: EQUI-VEST(R) series 100 and 200 contracts 16
Condensed financial information 20
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1. CONTRACT FEATURES AND BENEFITS 21
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How you can purchase and contribute to your contract 21
Owner and annuitant requirements 23
How you can make your contributions 23
What are your investment options under the contract? 23
Selecting your investment method 28
ERISA considerations for employers 29
Allocating your contributions 29
Your right to cancel within a certain number of days 29
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2. DETERMINING YOUR CONTRACT'S VALUE 30
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Your account value and cash value 30
Your contract's value in the variable investment options 30
Your contract's value in the guaranteed interest option 30
Your contract's value in the fixed maturity options 30
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3. TRANSFERRING YOUR MONEY AMONG
INVESTMENT OPTIONS 30
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Transferring your account value 31
Disruptive transfer activity 31
Automatic transfer options 31
Investment simplifier 31
Rebalancing your account value 32
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"We," "our" and "us" refer to Equitable Life.
When we address the reader of this prospectus with words such as "you" and
"your," we mean the person who has the right or responsibility that the
prospectus is discussing at that point. This is usually the contract owner.
When we use the word "contract" it also includes certificates that are issued
under group contracts in some states.
2 Contents of this prospectus
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4. ACCESSING YOUR MONEY 33
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Withdrawing your account value 33
How withdrawals are taken from your account value 34
Loans under TSA and Corporate Trusteed contracts 34
Termination 34
Texas ORP participants 34
When to expect payments 34
Your annuity payout options 35
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5. CHARGES AND EXPENSES 37
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Charges that Equitable Life deducts 37
Charges under the contracts 37
For all contract series 41
Charges that the Trusts deduct 41
Group or sponsored arrangements 40
Other distribution arrangements 42
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6. PAYMENT OF DEATH BENEFIT 43
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Your beneficiary and payment of benefit 43
How death benefit payment is made 43
Beneficiary continuation option 43
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7. TAX INFORMATION 45
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Tax information and ERISA matters 45
Buying a contract to fund a retirement arrangement 45
Special rules for tax-favored retirement programs 45
Additional "Saver's Credit" for salary reduction contributions to
certain plans or a traditional IRA or Roth IRA 45
Qualified plans 45
Tax-sheltered annuity arrangements (TSAs) 46
Distributions from Qualified Plans and TSAs 47
Simplified Employee Pensions (SEPs) 49
SIMPLE IRAs (Savings Incentive Match Plan) 49
Public and tax-exempt organization employee
deferred compensation plans (EDC Plans) 50
Traditional Individual Retirement Annuities
(Traditional IRAs) 51
ERISA matters 58
Certain rules applicable to plans designed
to comply with Section 404(c) of ERISA 58
Federal and state income tax withholding and
information reporting 59
Federal income tax withholding on periodic annuity payments 59
Federal income tax withholding on non-periodic annuity
payments (withdrawals) 59
Mandatory withholding from TSA and qualified plan distributions 59
Impact of taxes to Equitable Life 60
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8. MORE INFORMATION 61
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About our Separate Account A 61
About the Trusts 61
About our fixed maturity options 61
About the general account 62
About other methods of payment 62
Dates and prices at which contract events occur 63
About your voting rights 63
About legal proceedings 64
About our independent accountants 64
Financial statements 64
Transfers of ownership, collateral assignments,
loans, and borrowing 64
Funding changes 64
Distribution of the contracts 64
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9. INVESTMENT PERFORMANCE 65
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Communicating performance data 68
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10. INCORPORATION OF CERTAIN DOCUMENTS
BY REFERENCE 69
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APPENDICES
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I -- Condensed financial information A-1
II -- Original contracts B-1
III -- Market value adjustment example C-1
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STATEMENT OF ADDITIONAL INFORMATION
TABLE OF CONTENTS
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Contents of this prospectus 3
Index of key words and phrases
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This index should help you locate more information on the
terms used in this prospectus.
PAGE
account value 30
annuitant 29
annuity payout options 35
Annuitant-Owned HR-10 5
beneficiary 43
business day 63
cash value 30
contract date 10
contract date anniversary 10
contract year 10
contributions 44
disruptive transfer activity 31
DOL 44
EDC 5
EQAccess 7
ERISA 58
elective deferral contributions 44
fixed maturity amount 27
fixed maturity option 27
guaranteed interest option 27
PAGE
IRA 5
investment options 23
market timing 31
nonelective contribution 45
portfolio cover
processing office 7
Required Beginning Date 56
SAI cover
SEC cover
Salary reduction contributions 44
SARSEP 5
SEP 5
SIMPLE IRA 5
TOPS 7
Trusteed contracts 5
TSA 5
Trusts cover
unit 30
unit investment trust 61
variable investment options 23
To make this prospectus easier to read, we sometimes use different words than
in the contract or supplemental materials. This is illustrated below. Although
we do use different words, they have the same meaning in this prospectus as in
the contract or supplemental materials. Your financial professional can provide
further explanation about your contract.
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PROSPECTUS CONTRACT OR SUPPLEMENTAL MATERIALS
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fixed maturity options Guarantee Periods or Fixed Maturity Accounts
variable investment options Investment Funds or Investment Divisions
account value Annuity Account Value
guaranteed interest option Guaranteed Interest Account
unit Accumulation unit
unit value Accumulation unit value
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4 Index of key words and phrases
In this prospectus, we use a "series" number when necessary to identify a
particular contract. We discuss four series of contracts. However, only three
are available for new purchasers. Once you have purchased a contract you can
identify the EQUI-VEST(R) series you have by referring to your confirmation
notice, or you may contact your financial professional, or you may call our
toll-free number. The series designations are as follows:
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TSA, SEP, SARSEP, EDC, ANNUITANT-OWNED HR-10 AND TRUSTEED CONTRACTS series 100
ISSUED BEFORE AUGUST 17, 1995.
This series is no longer available for
new purchasers except in NY and NJ
(TSA, EDC and Trusteed), and in OR
(SEP, SARSEP, EDC and TSA).
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TSA, EDC, ANNUITANT-OWNED HR-10 AND TRUSTEED CONTRACTS ISSUED ON OR series 200
AFTER AUGUST 17, 1995. SEP AND SARSEP CONTRACTS ISSUED ON OR AFTER
AUGUST 17, 1995 AND BEFORE NOVEMBER 1, 1995 AND CURRENTLY IN A STATE This series is available for new
WHERE THE SERIES 300 CONTRACT HAS NOT BEEN APPROVED. purchasers of TSA, EDC and Annuitant-
Owned HR-10 contracts. Also available
for SEP and SARSEP contracts in MD
and WA.
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SEP AND SARSEP CONTRACTS ISSUED ON OR AFTER NOVEMBER 1, 1995 IN STATES series 300
WHICH HAVE APPROVED THE SERIES 300 CONTRACT.
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SIMPLE IRA CONTRACTS IN ALL APPROVED STATES. (WE RESERVE THE RIGHT TO series 400
ISSUE A SERIES 200 OR 300 SIMPLE IRA CONTRACT, AS NECESSARY, FOR STATES
NOT APPROVING THE SERIES 400 VERSION.)
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We also have contracts that we refer to as "original contracts." These
contracts are no longer available for new purchasers. Any information about
original contracts which is different from the current series we offer can be
found in Appendix II, which will be referenced throughout this prospectus when
it applies.
Index of key words and phrases 5
Who is Equitable Life?
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We are The Equitable Life Assurance Society of the United States ("Equitable
Life"), a New York stock life insurance corporation. We have been doing
business since 1859. Equitable Life is a wholly owned subsidiary of AXA
Financial, Inc. (previously, The Equitable Companies Incorporated). AXA, a
French holding company for an international group of insurance and related
financial services companies, is the sole shareholder of AXA Financial, Inc. As
the sole shareholder, and under its other arrangements with Equitable Life and
Equitable Life's parent, AXA exercises significant influence over the
operations and capital structure of Equitable Life and its parent. No company
other than Equitable Life, however, has any legal responsibility to pay amounts
that Equitable Life owes under the contracts.
AXA Financial, Inc. and its consolidated subsidiaries managed approximately
$481.0 billion in assets as of December 31, 2001. For over 100 years Equitable
Life has been among the largest insurance companies in the United States. We
are licensed to sell life insurance and annuities in all fifty states, the
District of Columbia, Puerto Rico, and the U.S. Virgin Islands. Our home office
is located at 1290 Avenue of the Americas, New York, N.Y. 10104.
6 Who is Equitable Life?
HOW TO REACH US
You may communicate with our processing office as listed below for the purposes
described. Certain methods of contacting us, such as by telephone or
electronically may be unavailable or delayed (for example our facsimile service
may not be available at all times and/or we may be unavailable due to emergency
closing). In addition, the level and type of service available may be
restricted based on criteria established by us.
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FOR CONTRIBUTIONS SENT BY REGULAR MAIL:
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Equitable Life
EQUI-VEST(R)
Unit Collections
P.O. Box 13463
Newark, NJ 07188-0463
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FOR TSA AND CORPORATE TRUSTEED LOAN REPAYMENTS
SENT BY REGULAR MAIL:
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Equitable Life
Loan Repayment
EQUI-VEST(R) Lockbox
P.O. Box 13496
Newark, NJ 07188-0496
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FOR ALL OTHER COMMUNICATIONS (E.G., REQUESTS FOR
TRANSFERS, WITHDRAWALS, OR REQUIRED NOTICES) SENT
BY REGULAR MAIL:
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Equitable Life
EQUI-VEST(R)
P.O. Box 2996
New York, NY 10116-2996
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FOR CONTRIBUTIONS SENT BY EXPRESS DELIVERY:
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Equitable Life
c/o Bank One, N.A.
300 Harmon Meadow Boulevard
3rd Floor
Secaucus, NJ 07094
Attn: Box 13463
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FOR ALL OTHER COMMUNICATIONS (E.G., REQUESTS FOR
TRANSFERS, WITHDRAWALS, OR REQUIRED NOTICES) SENT
BY EXPRESS DELIVERY:
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Equitable Life
EQUI-VEST(R)
200 Plaza Drive
2nd Floor
Secaucus, NJ 07094
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REPORTS WE PROVIDE:
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o written confirmation of financial transactions;
o quarterly statements of your contract values; and
o statement of your contract values as of the last day of the contract year.
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TELEPHONE OPERATED PROGRAM SUPPORT ("TOPS") AND
EQACCESS SYSTEMS
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TOPS is designed to provide you with up-to-date information via touch-tone
telephone. EQAccess is designed to provide this information through the
Internet. You can obtain information on:
o your current account value;
o your current allocation percentages;
o the number of units you have in the variable investment options;
o rates to maturity for fixed maturity options;
o the daily unit values for the variable investment options; and
o performance information regarding the variable investment options (not
available through TOPS).
You can also:
o change your allocation percentages and/or transfer among the variable
investment options and the guaranteed interest option; and
o elect the investment simplifier (not available through EQAccess); and
o change your TOPS personal identification number ("PIN") (not available
through EQAccess); and
o change your EQAccess password (not available through TOPS).
TOPS and EQAccess are normally available seven days a week, 24 hours a day. You
can use TOPS by calling toll-free 1 (800) 755-7777. You may use EQAccess by
visiting our Web site at http:// www.equitable.com and clicking on EQAccess.
Of course, for reasons beyond our control, these services may sometimes be
unavailable.
We have established procedures to reasonably confirm that the instructions
communicated by telephone or the Internet are genuine. For example, we will
require certain personal identification information before we will act on
telephone or Internet instructions and we will provide written confirmation of
your transfers. If we do not employ reasonable procedures to confirm the
genuineness of telephone or Internet instructions, we may be liable for any
losses arising out of any act or omission that constitutes negligence, lack of
good faith, or wilful misconduct. In light of our procedures, we will not be
liable for following telephone or Internet instructions we reasonably believe
to be genuine.
We reserve the right to limit access to these services if we determine that you
engaged in disruptive transfer activity, such as "market timing" (see
"Disruptive transfer activity" in "Transferring your money among investment
options" later in this Prospectus).
Who is Equitable Life? 7
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CUSTOMER SERVICE REPRESENTATIVE:
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You may also use our toll-free number 1 (800) 628-6673 to speak with one of our
customer service representatives. Our customer service representatives are
available on each business day Monday through Thursday from 8:00 a.m. to 7:00
p.m., and on Fridays until 5:00 p.m., Eastern Time.
Hearing or speech-impaired clients may call the AT&T National Relay Number at
(800) 855-2880 for information about your account. If you have a
Telecommunications Device for the Deaf (TDD), you may relay messages or
questions to our Customer Service Department at (800) 628-6673, Monday through
Thursday from 8:00 a.m. to 7:00 p.m., and on Friday until 5:00 p.m. Eastern
Time. AT&T personnel will communicate our reply back to you, via the TDD.
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TOLL-FREE TELEPHONE SERVICE:
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You may reach us toll-free by calling 1 (800) 841-0801 for a recording of daily
unit values for the variable investment options.
WE REQUIRE THAT THE FOLLOWING TYPES OF COMMUNICATIONS BE ON SPECIFIC FORMS WE
PROVIDE FOR THAT PURPOSE:
(1) election of the automatic investment program (not applicable to all
contracts);
(2) election of the investment simplifier;
(3) election of the automatic NQ deposit service;
(4) election of the rebalancing program;
(5) election of required minimum distribution option;
(6) transfer/rollover of assets to another carrier;
(7) request for a loan (ERISA and non-ERISA TSA and Corporate Trusteed
contracts);
(8) tax withholding election; and
(9) contract surrender and withdrawal requests.
WE ALSO HAVE SPECIFIC FORMS THAT WE RECOMMEND YOU USE FOR THE FOLLOWING TYPES
OF REQUESTS:
(1) address changes;
(2) beneficiary changes;
(3) transfers among investment options; and
(4) change of ownership (when applicable).
TO CHANGE OR CANCEL ANY OF THE FOLLOWING WE REQUIRE WRITTEN NOTIFICATION
GENERALLY AT LEAST SEVEN CALENDAR DAYS BEFORE THE NEXT SCHEDULED TRANSACTION:
(1) automatic investment program;
(2) investment simplifier;
(3) rebalancing program;
(4) systematic withdrawals; and
(5) the date annuity payments are to begin.
You must sign and date all these requests. Any written request that is not on
one of our forms must include your name and your contract number along with
adequate details about the notice you wish to give or the action you wish us to
take.
SIGNATURES:
The proper person to sign forms, notices and requests would normally be the
owner. For TSA, SEP, and SIMPLE IRA contracts we need the annuitant's signature
and in some cases the Plan Administrator's signature if the Plan requires it.
8 Who is Equitable Life?
EQUI-VEST(R) employer-sponsored retirement programs at a glance -- key features
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PROFESSIONAL EQUI-VEST(R)'s variable investment options invest in different portfolios managed by
INVESTMENT professional investment advisers.
MANAGEMENT -------------------------------------------------------------------------------------------------
GUARANTEED o Principal and interest guarantees
INTEREST OPTION o Interest rates set periodically
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FIXED MATURITY o 10 (7 in Oregon) fixed maturity options with maturities ranging from approximately 1 to
OPTIONS 10 years (1 to 7 in Oregon).
o Each fixed maturity option offers a guarantee of principal and interest rate if you
hold it to maturity.
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If you make withdrawals or transfers from a fixed maturity option before maturity, there will be
a market value adjustment due to differences in interest rates. This may increase or decrease
any value that you have left in that fixed maturity option. If you surrender your contract, a
market value adjustment (as well as withdrawal charges) may also apply.
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Only available for contracts in states where approved.
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TAX ADVANTAGES o On earnings inside No tax until you make withdrawals from your contract or receive
the contract annuity payments.
o On transfers inside No tax on transfers among investment options.
the contract
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Because you are purchasing an annuity contract as a Tax Sheltered Annuity (TSA), or to fund a
qualified employer sponsored retirement arrangement, you should be aware that such annuities do
not provide tax deferral benefits beyond those already provided by the Internal Revenue Code.
Before purchasing one of these annuities, you should consider whether its features and benefits
beyond tax deferral meet your needs and goals. You may also want to consider the relative
features, benefits and costs of these annuities with any other investment that you may use in
connection with your retirement plan or arrangement. (For more information, see "Tax
information," later in this Prospectus.)
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MINIMUM CONTRIBUTION o $20 each contribution
AMOUNTS o maximum contribution limits may apply.
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ACCESS TO YOUR MONEY o Lump sum withdrawals
o Several withdrawal options on a periodic basis
o Contract surrender
Withdrawals are subject to the terms of the plan and may be limited. You may incur a withdrawal
charge for certain withdrawals or if you surrender your contract. You may also incur income tax
and a penalty tax.
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PAYOUT OPTIONS o Fixed annuity payout options
o Variable annuity payout options
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ADDITIONAL FEATURES o Dollar cost averaging by automatic transfers
-- Interest sweep option
-- Fixed dollar option
o Automatic investment program (not applicable to all contracts)
o Account value rebalancing (quarterly, semiannually, and annually)
o No charge on transfers among investment options
o Waiver of withdrawal charge for disability, confinement to a nursing home, and terminal
illness (series 300
and 400 only)
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EQUI-VEST(R) employer-sponsored retirement programs at a
glance -- key features 9
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FEES AND CHARGES o Daily charge on amounts invested in variable investment options for mortality and expense
risks and other expenses at annual rates determined by contract series:
series 100 -- 1.34%; three options at 1.49%.
series 200 -- 1.34%; three options at 1.49%.
series 300 and 400: 1.35% (maximum of 2.00% for series 400).
o Annual administrative charge*:
series 100 and 200: $30 or 2% of the account value, if less.
series 300 and 400: $30 during the first two contract years or 2% of the account value, if less;
$30 thereafter ($65 maximum).
* For individuals who own multiple contracts with combined account values over $100,000, this
charge may be waived. See "Annual administrative charge" in "Charges and expenses" later in this
Prospectus.
o Charge for third-party transfer (such as in the case of a trustee-to-trustee transfer for an
IRA contract) or exchange (if your contract is exchanged for a contract issued by another
insurance company): series 100 and 200: none series 300 and 400: $25 current per occurrence ($65
maximum).
o No sales charge deducted at the time you make contributions.
o Withdrawal charge:
-- series 300, 400, and Trusteed contracts under series 100 and 200: We deduct a charge equal to 6% of
contributions that have been withdrawn if such contributions were made in the current and five prior
contract years.
All non-Trusteed contracts under series 100 and 200: 6% of contributions withdrawn, generally declining for
the first through 12th contract years. The total of all withdrawal charges may not exceed 8% of all
contributions made during a specified period before the withdrawal is made.
There is no charge in any contract year in which the amount withdrawn does not exceed 10% of your
account value at the time of your withdrawal request minus prior withdrawals in that contract year.
Under certain circumstances the withdrawal charge will not apply. They are discussed in "Charges and
expenses" later in this Prospectus.
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The "contract date" is the effective date of a contract. This usually is the business day we receive the
properly completed and signed application, along with any other required documents, and your initial
contribution. Your contract date will be shown in your contract. The 12-month period beginning on your
contract date and each 12-month period after that date is a "contract year." The end of each 12-month
period is your "contract date anniversary."
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o We deduct a charge designed to approximate certain taxes that may be imposed on us, such as premium
taxes in your state. The charge is generally deducted from the amount applied to an annuity payout
option.
o We deduct a $350 annuity administrative fee from amounts applied to a Variable Immediate Annuity
payout option.
o Annual expenses of the Trust portfolios are calculated as a percentage of the average daily net assets
invested in each portfolio. These expenses include management fees ranging from 0.25% to 1.20% annually,
other expenses, and for Class IB/B shares 12b-1 fees of 0.25% annually.
- ----------------------------------------------------------------------------------------------------------------------------------
THE ABOVE IS NOT A COMPLETE DESCRIPTION OF ALL MATERIAL PROVISIONS OF THE
CONTRACT. IN SOME CASES RESTRICTIONS OR EXCEPTIONS APPLY, OR MAY BE IMPOSED BY
EMPLOYERS UNDER THEIR PLANS. MAXIMUM EXPENSE LIMITATIONS APPLY TO CERTAIN
VARIABLE INVESTMENT OPTIONS, AND RIGHTS ARE RESERVED TO CHANGE OR WAIVE CERTAIN
CHARGES WITHIN SPECIFIED LIMITS. ALSO, ALL FEATURES OF THE CONTRACT, INCLUDING
ALL VARIABLE INVESTMENT OPTIONS, ARE NOT NECESSARILY AVAILABLE IN YOUR STATE OR
AT CERTAIN AGES OR UNDER YOUR INVESTMENT METHOD.
For more detailed information we urge you to read the contents of this
prospectus, as well as your contract. Please feel free to speak with your
financial professional, or call us, if you have any questions.
OTHER CONTRACTS
We offer a variety of fixed and variable annuity contracts. They may offer
features, including investment options, fees and/or charges that are different
than those offered by this prospectus. Not every contract is offered through
the same distributor. Upon request, your financial professional can show you
information regarding other Equitable Life annuity contracts that he or she
distributes. You can also contact us to find out more about any of the
Equitable Life annuity contracts.
10 EQUI-VEST(R) employer-sponsored retirement programs at a glance -- key
features
Fee table
- --------------------------------------------------------------------------------
The fee tables below will help you understand the various charges and expenses
that apply to your contract series. The tables reflect charges you will
directly incur under the contract, as well as charges and expenses of the
Trusts and their Portfolios that you will bear indirectly. Charges designed to
approximate certain taxes that may be imposed on us, such as premium taxes in
your state, may also apply. Also, an annuity administrative fee may apply when
your annuity payments are to begin. Each of the charges and expenses is more
fully described in "Charges and expenses" later in this Prospectus. For a
complete description of portfolio charges and expenses, please see the attached
prospectuses for each Trust.
The guaranteed interest option and fixed maturity options are not covered by
the fee tables and examples. However, the annual administrative charge, the
withdrawal charge, and the third-party transfer or exchange charge do apply to
the guaranteed interest option. Also, an annuity administrative fee may apply
when your annuity payments are to begin.
- --------------------------------------------------------------------------------
CHARGES WE DEDUCT FROM YOUR VARIABLE INVESTMENT OPTIONS EXPRESSED AS AN ANNUAL
PERCENTAGE OF DAILY NET ASSETS
- --------------------------------------------------------------------------------
EQ/BALANCED,
EQ/ALLIANCE
COMMON STOCK,
EQ/ALLIANCE ALL OTHER
MONEYMARKET OPTIONS VARIABLE INVESTMENT OPTIONS
------------------- ---------------------------------
SERIES SERIES SERIES SERIES SERIES 300
100 200 100 200 and 400
---- ---- ---- ---- ----------
Mortality and expense risk(1) 0.65% 1.15% 0.50% 1.09% 1.10%
Other expenses(2) 0.84% 0.25% 0.84% 0.25% 0.25%
---- ---- ---- ---- -----
Total Separate Account A
annual expenses(3)(4) 1.49% 1.40% current 1.34% 1.34% 1.35% current (for series 400
==== ==== (1.49% maximum) ==== ==== ===== 2.00% maximum)
- --------------------------------------------------------------------------------
CHARGES WE DEDUCT FROM YOUR ACCOUNT VALUE ON EACH CONTRACT DATE ANNIVERSARY
- --------------------------------------------------------------------------------
Annual administrative charge(5) $30 (for series 300 and 400; $65 maximum)
- --------------------------------------------------------------------------------
CHARGES WE DEDUCT FROM YOUR ACCOUNT VALUE AT THE TIME YOU REQUEST CERTAIN
TRANSACTIONS
- --------------------------------------------------------------------------------
Maximum withdrawal charge(6) 6%
Charge for third-party transfer or exchange(7) series 100 and 200; none
series 300 and 400; $25
current ($65 maximum)
for each occurence
Charge if you elect a Variable Immediate
Annuity payout option $350
Fee Table 11
THE TRUSTS' ANNUAL EXPENSES
(AS A PERCENTAGE OF AVERAGE DAILY NET ASSETS IN EACH PORTFOLIO)
- ------------------------------------------------------------------------------------------------------------------------------------
NET
TOTAL
OTHER ANNUAL
MANAGEMENT EXPENSES EXPENSES
FEES (AFTER EXPENSE (AFTER EXPENSE (AFTER EXPENSE
PORTFOLIO NAME LIMITATION)(8) 12B-1 FEES(9) LIMITATION)(10) LIMITATION)(11)
- ------------------------------------------------------------------------------------------------------------------------------------
AXA PREMIER VIP TRUST:
- ------------------------------------------------------------------------------------------------------------------------------------
AXA Premier VIP Core Bond 0.00% 0.25% 0.70% 0.95%
AXA Premier VIP Health Care 0.44% 0.25% 1.16% 1.85%
AXA Premier VIP International Equity 0.62% 0.25% 0.93% 1.80%
AXA Premier VIP Large Cap Growth 0.31% 0.25% 0.79% 1.35%
AXA Premier VIP Large Cap Core Equity 0.17% 0.25% 0.93% 1.35%
AXA Premier VIP Large Cap Value 0.08% 0.25% 1.02% 1.35%
AXA Premier VIP Small/Mid Cap Growth 0.42% 0.25% 0.93% 1.60%
AXA Premier VIP Small/Mid Cap Value 0.20% 0.25% 1.15% 1.60%
AXA Premier VIP Technology 0.58% 0.25% 1.02% 1.85%
- ------------------------------------------------------------------------------------------------------------------------------------
EQ ADVISORS TRUST:
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/Aggressive Stock 0.61% -- 0.08% 0.69%
EQ/Alliance Common Stock 0.46% -- 0.07% 0.53%
EQ/Alliance Global 0.73% -- 0.12% 0.85%
EQ/Alliance Growth and Income 0.57% -- 0.06% 0.63%
EQ/Alliance Growth Investors 0.57% -- 0.06% 0.63%
EQ/Alliance Intermediate Government Securities 0.50% -- 0.12% 0.62%
EQ/Alliance International 0.85% -- 0.25% 1.10%
EQ/Alliance Money Market 0.33% -- 0.07% 0.40%
EQ/Alliance Premier Growth 0.84% 0.25% 0.06% 1.15%
EQ/Alliance Quality Bond 0.53% -- 0.07% 0.60%
EQ/Alliance Small Cap Growth 0.75% -- 0.06% 0.81%
EQ/Alliance Technology 0.82% 0.25% 0.08% 1.15%
EQ/AXP New Dimensions 0.00% 0.25% 0.70% 0.95%
EQ/AXP Strategy Aggressive 0.00% 0.25% 0.75% 1.00%
EQ/Balanced 0.57% -- 0.08% 0.65%
EQ/Bernstein Diversified Value 0.61% 0.25% 0.09% 0.95%
EQ/Calvert Socially Responsible 0.00% 0.25% 0.80% 1.05%
EQ/Capital Guardian International 0.66% 0.25% 0.29% 1.20%
EQ/Capital Guardian Research 0.55% 0.25% 0.15% 0.95%
EQ/Capital Guardian US Equity 0.59% 0.25% 0.11% 0.95%
EQ/Emerging Markets Equity 0.87% 0.25% 0.68% 1.80%
EQ/Equity 500 Index 0.25% -- 0.06% 0.31%
EQ/Evergreen Omega 0.00% 0.25% 0.70% 0.95%
EQ/FI Mid Cap 0.48% 0.25% 0.27% 1.00%
EQ/FI Small/Mid Cap Value 0.74% 0.25% 0.11% 1.10%
EQ/High Yield 0.60% -- 0.07% 0.67%
EQ/International Equity Index 0.35% 0.25% 0.50% 1.10%
EQ/J.P. Morgan Core Bond 0.44% 0.25% 0.11% 0.80%
EQ/Janus Large Cap Growth 0.76% 0.25% 0.14% 1.15%
EQ/Lazard Small Cap Value 0.72% 0.25% 0.13% 1.10%
EQ/Marsico Focus 0.00% 0.25% 0.90% 1.15%
EQ/Mercury Basic Value Equity 0.60% 0.25% 0.10% 0.95%
EQ/MFS Emerging Growth Companies 0.63% 0.25% 0.09% 0.97%
EQ/MFS Investors Trust 0.58% 0.25% 0.12% 0.95%
EQ/MFS Research 0.63% 0.25% 0.07% 0.95%
EQ/Putnam Growth & Income Value 0.57% 0.25% 0.13% 0.95%
EQ/Putnam International Equity 0.71% 0.25% 0.29% 1.25%
EQ/Putnam Voyager 0.62% 0.25% 0.08% 0.95%
EQ/Small Company Index 0.25% 0.25% 0.35% 0.85%
- ------------------------------------------------------------------------------------------------------------------------------------
Notes:
(1) A portion of this charge is for providing the death benefit.
(2) For the series 300 and 400 contracts: we currently charge 0.25% for the
EQ/Aggressive Stock, EQ/Balanced, EQ/Alliance Common Stock, and
EQ/Alliance Money Market options and 0.24% for all the other options (we
reserve the right to increase this charge to 0.25% at our discretion). For
series 100 and 200 contracts, this charge is for financial accounting and
other administrative services relating to the contract.
12 Fee table
(3) Total Separate Account A annual expenses (not including the Trusts' fees
and other expenses) are guaranteed not to exceed a total annual rate of:
(i) 2.00% for series 400; (ii) 1.35% for series 300 contracts; and (iii)
1.49% for series 100 and 200 contracts for the EQ/Balanced, EQ/Alliance
Common Stock, and EQ/Alliance Money Market options; and (iv) for series 100
and 200 contracts an annual rate of 1.34% for all the other options except
for those in (iii).
(4) For series 100 and 200 contracts, the total Separate Account A annual
expenses and total annual expenses of the Trusts' fees when added together
are not permitted to exceed 1.75% for the EQ/Aggressive Stock,
EQ/Balanced, EQ/Alliance Common Stock and EQ/Alliance Money Market
options. Without this expense limitation, the total annual expenses
deducted from the variable investment options plus the Trusts' annual
expenses for 2001 would have been 1.89% for the EQ/Alliance Money Market
option; 2.00% for the EQ/Alliance Common Stock option; 2.01% for the
EQ/Aggressive Stock option; and 2.14% for the EQ/Balanced option.
(5) For series 300 and 400 contracts, during the first two contract years,
this charge is equal to the lesser of $30 or 2% of your account value.
Thereafter, the charge is $30 for each contract year. We reserve the right
to increase this charge to an annual maximum of $65. For series 100 and
200 contracts, the charge is equal to the lesser of $30 or 2% of your
account value. Some series 100 and 200 contracts are exempt from this
charge.
(6) This charge applies to withdrawn contributions and is deducted upon a
withdrawal of amounts, or defaulted loan amounts, in excess of the 10%
free withdrawal amount. Important exceptions and limitations may eliminate
or reduce this charge. For a complete description of withdrawal charges,
please see "Withdrawal charges" in "Charges and expenses" later in this
Prospectus.
(7) For series 300 and 400 contracts, we reserve the right to increase this
charge to a maximum of $65 for each occurrence.
(8) The management fees for each portfolio cannot be increased without a vote
of that portfolio's shareholders. See footnote (10) for any expense
limitation agreement information.
(9) The Class IB/B shares of the Trusts are subject to fees imposed under
distribution plans (the "Rule 12b-1 Plan") adopted by the Trusts pursuant
to Rule 12b-1 under the Investment Company Act of 1940. The 12b-1 fee will
not be increased for the life of the contracts. Class IA/A shares of the
Trusts are not subject to these fees.
(10) The amounts shown as "Other Expenses" will fluctuate from year to year
depending on actual expenses. Since initial seed capital was invested for
the EQ/Marsico Focus Portfolio on August 31, 2001, "Other Expenses" shown
have been annualized. Also, initial seed capital was invested for AXA
Premier VIP Trust portfolios on December 31, 2001, thus "Other Expenses"
shown are estimated. See footnote (11) for any expense limitation
agreement information.
(11) Equitable Life, the Trusts' manager, has entered into expense limitation
agreements with respect to certain Portfolios which are effective through
April 30, 2003. Under these agreements Equitable Life has agreed to waive
or limit its fees and assume other expenses of each of these Portfolios,
if necessary, in an amount that limits each Portfolio's Total Annual
Expenses (exclusive of interest, taxes, brokerage commissions, capitalized
expenditures, and extraordinary expenses) to not more than the amounts
specified above as "Net Total Annual Expenses." Each Portfolio may at a
later date make a reimbursement to Equitable Life for any of the
management fees waived or limited and other expenses assumed and paid by
Equitable Life pursuant to the expense limitation agreement provided that
the Portfolio's current annual operating expenses do not exceed the
operating expense limit determined for such portfolio. For more
information see the prospectus for each Trust. The following chart
indicates management fees and other expenses before any fee waivers and/or
expense reimbursements that would have applied to each Portfolio.
Portfolios that are not listed below do not have an expense limitation
arrangement in effect, or the expense limitation arrangement did not
result in a fee waiver or reimbursement.
- --------------------------------------------------------------------------------
MANAGEMENT FEES OTHER EXPENSES
(BEFORE ANY FEE (BEFORE ANY FEE
WAIVERS AND/OR WAIVERS AND/OR
EXPENSE EXPENSE
PORTFOLIO NAME REIMBURSEMENTS) REIMBURSEMENTS)
- --------------------------------------------------------------------------------
AXA PREMIER VIP TRUST:
- --------------------------------------------------------------------------------
AXA Premier VIP Core Bond 0.60% 0.84%
AXA Premier VIP Health Care 1.20% 1.16%
AXA Premier VIP International
Equity 1.05% 0.93%
AXA Premier VIP Large Cap Core
Equity 0.90% 0.93%
AXA Premier VIP Large Cap Growth 0.90% 0.79%
AXA Premier VIP Large Cap Value 0.90% 1.02%
AXA Premier VIP Small/Mid Cap
Growth 1.10% 0.93%
AXA Premier VIP Small/Mid Cap
Value 1.10% 1.15%
AXA Premier VIP Technology 1.20% 1.02%
- --------------------------------------------------------------------------------
EQ ADVISORS TRUST:
- --------------------------------------------------------------------------------
EQ/Alliance Premier Growth 0.90% 0.06%
EQ/Alliance Technology 0.90% 0.08%
EQ/AXP New Dimensions 0.65% 1.06%
EQ/AXP Strategy Aggressive 0.70% 0.77%
EQ/Bernstein Diversified Value 0.65% 0.09%
EQ/Calvert Socially Responsible 0.65% 1.46%
EQ/Capital Guardian International 0.85% 0.29%
EQ/Capital Guardian Research 0.65% 0.15%
EQ/Capital Guardian US Equity 0.65% 0.11%
EQ/Emerging Markets Equity 1.15% 0.68%
EQ/Evergreen Omega 0.65% 0.99%
EQ/FI Mid Cap 0.70% 0.27%
EQ/FI Small/Mid Cap Value 0.75% 0.11%
EQ/International Equity Index 0.35% 0.50%
EQ/J.P. Morgan Core Bond 0.45% 0.11%
EQ/Janus Large Cap Growth 0.90% 0.14%
EQ/Lazard Small Cap Value 0.75% 0.13%
EQ/Marsico Focus 0.90% 2.44%
EQ/MFS Investors Trust 0.60% 0.12%
EQ/MFS Research 0.65% 0.07%
EQ/Putnam Growth & Income Value 0.60% 0.13%
EQ/Putnam International Equity 0.85% 0.29%
EQ/Putnam Voyager 0.65% 0.08%
- --------------------------------------------------------------------------------
Fee table 13
EXAMPLES: EQUI-VEST(R) SERIES 300
For each type of series 300 contracts, the examples below show the expenses
that a hypothetical contract owner or participant, as applicable, would pay in
the situations illustrated. We assume a $1,000 contribution is invested in one
of the variable investment options listed, and a 5% annual return is earned on
the assets in that option.(1) The annual administrative charge is based on
charges that apply to a mix of estimated contract sizes, resulting in an
estimated charge for the purpose of these examples of $0.714 per $1,000. We
also assume there is no waiver of the withdrawal charge. The examples assume
the continuation of Total Annual Expenses (after expense limitation) shown for
each Portfolio of the Trusts in the table, above, for the entire one, three,
five and ten year periods included in the examples.
These examples should not be considered a representation of past or future
expenses for each option. Actual expenses may be greater or less than those
shown. Similarly, the annual rate of return assumed in the examples is not an
estimate or guarantee of future investment performance.
- -----------------------------------------------------------------------------------------------
IF YOU SURRENDER YOUR CONTRACT AT THE END OF
EACH PERIOD SHOWN, THE EXPENSES WOULD BE:
----------------------------------------------
1 YEAR 3 YEARS 5 YEARS 10 YEARS
- -----------------------------------------------------------------------------------------------
AXA Premier VIP Core Bond $ 80.24 $ 134.71 $ 190.82 $ 278.92
AXA Premier VIP Health Care $ 89.17 $ 161.18 $ 235.46 $ 368.51
AXA Premier VIP International Equity $ 88.68 $ 159.72 $ 233.09 $ 363.75
AXA Premier VIP Large Cap Core Equity $ 84.21 $ 146.54 $ 211.50 $ 319.76
AXA Premier VIP Large Cap Growth $ 84.21 $ 146.54 $ 211.50 $ 319.76
AXA Premier VIP Large Cap Value $ 84.21 $ 146.54 $ 211.50 $ 319.76
AXA Premier VIP Small/Mid Cap Growth $ 86.69 $ 153.88 $ 223.55 $ 344.44
AXA Premier VIP Small/Mid Cap Value $ 86.69 $ 153.88 $ 223.55 $ 344.44
AXA Premier VIP Technology $ 89.17 $ 161.18 $ 235.46 $ 368.51
EQ/Aggressive Stock $ 77.66 $ 126.97 $ 177.12 $ 251.47
EQ/Alliance Common Stock $ 76.07 $ 122.18 $ 168.60 $ 234.22
EQ/Alliance Global $ 79.25 $ 131.74 $ 185.57 $ 268.45
EQ/Alliance Growth and Income $ 77.06 $ 125.18 $ 173.93 $ 245.03
EQ/Alliance Growth Investors $ 77.06 $ 125.18 $ 173.93 $ 245.03
EQ/Alliance Intermediate Government Securities $ 76.96 $ 124.88 $ 173.40 $ 243.96
EQ/Alliance International $ 81.73 $ 139.16 $ 198.66 $ 294.43
EQ/Alliance Money Market $ 74.78 $ 118.28 $ 161.65 $ 219.99
EQ/Alliance Premier Growth $ 82.22 $ 140.64 $ 201.26 $ 299.54
EQ/Alliance Quality Bond $ 76.76 $ 124.28 $ 172.34 $ 241.80
EQ/Alliance Small Cap Growth $ 78.85 $ 130.55 $ 183.46 $ 264.23
EQ/Alliance Technology $ 82.22 $ 140.64 $ 201.26 $ 299.54
EQ/AXP New Dimensions $ 80.24 $ 134.71 $ 190.82 $ 278.92
EQ/AXP Strategy Aggressive $ 80.74 $ 136.19 $ 193.44 $ 284.11
EQ/Balanced $ 77.26 $ 125.77 $ 174.99 $ 247.18
EQ/Bernstein Diversified Value $ 80.24 $ 134.71 $ 190.82 $ 278.92
EQ/Calvert Socially Responsible $ 81.23 $ 137.68 $ 196.05 $ 289.28
EQ/Capital Guardian International $ 82.72 $ 142.11 $ 203.86 $ 304.64
EQ/Capital Guardian Research $ 80.24 $ 134.71 $ 190.82 $ 278.92
EQ/Capital Guardian U.S. Equity $ 80.24 $ 134.71 $ 190.82 $ 278.92
EQ/Emerging Markets Equity $ 88.68 $ 159.72 $ 233.09 $ 363.75
EQ/Equity 500 Index $ 73.89 $ 115.58 $ 156.81 $ 210.03
EQ/Evergreen Omega $ 80.24 $ 134.71 $ 190.82 $ 278.92
EQ/FI Mid Cap $ 80.74 $ 136.19 $ 193.44 $ 284.11
EQ/FI Small/Mid Cap Value $ 81.73 $ 139.16 $ 198.66 $ 294.43
EQ/High Yield $ 77.46 $ 126.37 $ 176.05 $ 249.33
EQ/International Equity Index $ 81.73 $ 139.16 $ 198.66 $ 294.43
EQ/J.P. Morgan Core Bond $ 78.75 $ 130.25 $ 182.93 $ 263.17
EQ/Janus Large Cap Growth $ 82.22 $ 140.64 $ 201.26 $ 299.54
EQ/Lazard Small Cap Value $ 81.73 $ 139.16 $ 198.66 $ 294.43
EQ/Marsico Focus $ 82.22 $ 140.64 $ 201.26 $ 299.54
EQ/Mercury Basic Value Equity $ 80.24 $ 134.71 $ 190.82 $ 278.92
EQ/MFS Emerging Growth Companies $ 80.44 $ 135.30 $ 191.87 $ 281.00
EQ/MFS Investors Trust $ 80.24 $ 134.71 $ 190.82 $ 278.92
EQ/MFS Research $ 80.24 $ 134.71 $ 190.82 $ 278.92
EQ/Putnam Growth & Income Value $ 80.24 $ 134.71 $ 190.82 $ 278.92
EQ/Putnam International Equity $ 83.22 $ 143.59 $ 206.45 $ 309.70
EQ/Putnam Voyager $ 80.24 $ 134.71 $ 190.82 $ 278.92
EQ/Small Company Index $ 79.25 $ 131.74 $ 185.57 $ 268.45
- -----------------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------
IF YOU SURRENDER YOUR CONTRACT AT THE END OF
EACH PERIOD SHOWN, THE EXPENSES WOULD BE:
---------------------------------------------
1 YEAR 3 YEARS 5 YEARS 10 YEARS
- ----------------------------------------------------------------------------------------------
AXA Premier VIP Core Bond $ 24.88 $ 76.54 $ 130.82 $ 278.92
AXA Premier VIP Health Care $ 34.33 $ 104.60 $ 177.09 $ 368.51
AXA Premier VIP International Equity $ 33.80 $ 103.05 $ 174.57 $ 363.75
AXA Premier VIP Large Cap Core Equity $ 29.08 $ 89.08 $ 151.61 $ 319.76
AXA Premier VIP Large Cap Growth $ 29.08 $ 89.08 $ 151.61 $ 319.76
AXA Premier VIP Large Cap Value $ 29.08 $ 89.08 $ 151.61 $ 319.76
AXA Premier VIP Small/Mid Cap Growth $ 31.70 $ 96.86 $ 164.42 $ 344.44
AXA Premier VIP Small/Mid Cap Value $ 31.70 $ 96.86 $ 164.42 $ 344.44
AXA Premier VIP Technology $ 34.33 $ 104.60 $ 177.09 $ 368.51
EQ/Aggressive Stock $ 22.15 $ 68.33 $ 117.12 $ 251.47
EQ/Alliance Common Stock $ 20.48 $ 63.26 $ 108.60 $ 234.22
EQ/Alliance Global $ 23.83 $ 73.39 $ 125.57 $ 268.45
EQ/Alliance Growth and Income $ 21.52 $ 66.43 $ 113.93 $ 245.03
EQ/Alliance Growth Investors $ 21.52 $ 66.43 $ 113.93 $ 245.03
EQ/Alliance Intermediate Government Securities $ 21.42 $ 66.11 $ 113.40 $ 243.96
EQ/Alliance International $ 26.46 $ 81.25 $ 138.66 $ 294.43
EQ/Alliance Money Market $ 19.11 $ 59.12 $ 101.65 $ 219.99
EQ/Alliance Premier Growth $ 26.98 $ 82.82 $ 141.26 $ 299.54
EQ/Alliance Quality Bond $ 21.21 $ 65.48 $ 112.34 $ 241.80
EQ/Alliance Small Cap Growth $ 23.41 $ 72.12 $ 123.46 $ 264.23
EQ/Alliance Technology $ 26.98 $ 82.82 $ 141.26 $ 299.54
EQ/AXP New Dimensions $ 24.88 $ 76.54 $ 130.82 $ 278.92
EQ/AXP Strategy Aggressive $ 25.41 $ 78.11 $ 133.44 $ 284.11
EQ/Balanced $ 21.73 $ 67.06 $ 114.99 $ 247.18
EQ/Bernstein Diversified Value $ 24.88 $ 76.54 $ 130.82 $ 278.92
EQ/Calvert Socially Responsible $ 25.93 $ 79.68 $ 136.05 $ 289.28
EQ/Capital Guardian International $ 27.51 $ 84.39 $ 143.86 $ 304.64
EQ/Capital Guardian Research $ 24.88 $ 76.54 $ 130.82 $ 278.92
EQ/Capital Guardian U.S. Equity $ 24.88 $ 76.54 $ 130.82 $ 278.92
EQ/Emerging Markets Equity $ 33.80 $ 103.05 $ 174.57 $ 363.75
EQ/Equity 500 Index $ 18.17 $ 56.26 $ 96.81 $ 210.03
EQ/Evergreen Omega $ 24.88 $ 76.54 $ 130.82 $ 278.92
EQ/FI Mid Cap $ 25.41 $ 78.11 $ 133.44 $ 284.11
EQ/FI Small/Mid Cap Value $ 26.46 $ 81.25 $ 138.66 $ 294.43
EQ/High Yield $ 21.94 $ 67.70 $ 116.05 $ 249.33
EQ/International Equity Index $ 26.46 $ 81.25 $ 138.66 $ 294.43
EQ/J.P. Morgan Core Bond $ 23.31 $ 71.81 $ 122.93 $ 263.17
EQ/Janus Large Cap Growth $ 26.98 $ 82.82 $ 141.26 $ 299.54
EQ/Lazard Small Cap Value $ 26.46 $ 81.25 $ 138.66 $ 294.43
EQ/Marsico Focus $ 26.98 $ 82.82 $ 141.26 $ 299.54
EQ/Mercury Basic Value Equity $ 24.88 $ 76.54 $ 130.82 $ 278.92
EQ/MFS Emerging Growth Companies $ 25.09 $ 77.17 $ 131.87 $ 281.00
EQ/MFS Investors Trust $ 24.88 $ 76.54 $ 130.82 $ 278.92
EQ/MFS Research $ 24.88 $ 76.54 $ 130.82 $ 278.92
EQ/Putnam Growth & Income Value $ 24.88 $ 76.54 $ 130.82 $ 278.92
EQ/Putnam International Equity $ 28.03 $ 85.95 $ 146.45 $ 309.70
EQ/Putnam Voyager $ 24.88 $ 76.54 $ 130.82 $ 278.92
EQ/Small Company Index $ 23.83 $ 73.39 $ 125.57 $ 268.45
- ---------------------------------------------------------------------------------------------
14 Fee table
(1) The amount accumulated from the $1,000 contribution could not be paid in
the form of an annuity at the end of any of the periods shown in the
examples. This is because if the amount applied to purchase an annuity
payout option is less than $2,000, or the initial payment is less than
$20, we may pay the amount to you in a single sum instead of as payments
under an annuity payout option. See "Accessing your money" later in this
Prospectus.
IF YOU ELECT A VARIABLE IMMEDIATE ANNUITY PAYOUT OPTION:
Assuming an annuity payout option could be issued (see note (1) above), and you
elect a Variable Immediate Annuity payout option, the expenses shown in the
above example of "if you do not surrender your contract" would, in each case,
be increased by $5.44 based on the average amount applied to annuity payout
options in 2001. See "Annuity administrative fee" under "Charges and expenses"
later in this Prospectus.
EXAMPLES: EQUI-VEST(R) SERIES 400
For each type of series 400 contract, the examples below show the expenses that
a hypothetical contract owner or participant, as applicable, would pay in the
situations illustrated. We assume a $1,000 contribution is invested in one of
the variable investment options listed, and a 5% annual return is earned on the
assets in that option.(1) The annual administrative charge is based on charges
that apply to a mix of estimated contract sizes, resulting in an estimated
charge for the purpose of these examples of $0.714 per $1,000. We also assume
there is no waiver of the withdrawal charge. The examples assume the
continuation of Total Annual Expenses (after expense limitation) shown for each
Portfolio of the Trusts in the table, above, for the entire one, three, five
and ten year periods included in the examples. Other than as indicated above,
the charges and expenses used to compute the examples below are the maximum
series 400 expenses rather than the lower current series 400 expenses.
These examples should not be considered a representation of past or future
expenses for each option. Actual expenses may be greater or less than those
shown. Similarly, the annual rate of return assumed in the examples is not an
estimate or guarantee of future investment performance.
- -----------------------------------------------------------------------------------------------
IF YOU SURRENDER YOUR CONTRACT AT THE END OF
EACH PERIOD SHOWN, THE EXPENSES WOULD BE:
----------------------------------------------
1 YEAR 3 YEARS 5 YEARS 10 YEARS
- -----------------------------------------------------------------------------------------------
AXA Premier VIP Core Bond $ 86.69 $ 153.88 $ 223.55 $ 344.44
AXA Premier VIP Health Care $ 95.62 $ 179.98 $ 265.84 $ 428.25
AXA Premier VIP International Equity $ 95.13 $ 178.54 $ 263.53 $ 423.79
AXA Premier VIP Large Cap Core Equity $ 90.66 $ 165.54 $ 242.55 $ 382.65
AXA Premier VIP Large Cap Growth $ 90.66 $ 165.54 $ 242.55 $ 382.65
AXA Premier VIP Large Cap Value $ 90.66 $ 165.54 $ 242.55 $ 382.65
AXA Premier VIP Small/Mid Cap Growth $ 93.14 $ 172.78 $ 254.26 $ 405.74
AXA Premier VIP Small/Mid Cap Value $ 93.14 $ 172.78 $ 254.26 $ 405.74
AXA Premier VIP Technology $ 95.62 $ 179.98 $ 265.84 $ 428.25
EQ/Aggressive Stock $ 84.11 $ 146.24 $ 211.01 $ 318.75
EQ/Alliance Common Stock $ 82.52 $ 141.52 $ 202.82 $ 302.60
EQ/Alliance Global $ 85.70 $ 150.95 $ 218.74 $ 334.64
EQ/Alliance Growth and Income $ 83.51 $ 144.47 $ 208.00 $ 312.73
EQ/Alliance Growth Investors $ 83.51 $ 144.47 $ 208.00 $ 312.73
EQ/Alliance Intermediate Government Securities $ 83.42 $ 144.18 $ 207.48 $ 311.72
EQ/Alliance International $ 88.18 $ 158.26 $ 230.71 $ 358.96
EQ/Alliance Money Market $ 81.23 $ 137.68 $ 196.05 $ 289.28
EQ/Alliance Premier Growth $ 88.68 $ 159.72 $ 233.09 $ 363.75
EQ/Alliance Quality Bond $ 83.22 $ 143.59 $ 206.45 $ 309.70
EQ/Alliance Small Cap Growth $ 85.30 $ 149.77 $ 216.82 $ 330.70
EQ/Alliance Technology $ 88.68 $ 159.72 $ 233.09 $ 363.75
EQ/AXP New Dimensions $ 86.69 $ 153.88 $ 223.55 $ 344.44
EQ/AXP Strategy Aggressive $ 87.19 $ 155.34 $ 225.94 $ 349.31
EQ/Balanced $ 83.71 $ 145.06 $ 209.03 $ 314.74
EQ/Bernstein Diversified Value $ 86.69 $ 153.88 $ 223.55 $ 344.44
EQ/Calvert Socially Responsible $ 87.68 $ 156.80 $ 228.33 $ 354.14
EQ/Capital Guardian International $ 89.17 $ 161.18 $ 235.46 $ 368.51
EQ/Capital Guardian Research $ 86.69 $ 153.88 $ 223.55 $ 344.44
EQ/Capital Guardian U.S. Equity $ 86.69 $ 153.88 $ 223.55 $ 344.44
EQ/Emerging Markets Equity $ 95.13 $ 178.54 $ 263.53 $ 423.79
EQ/Equity 500 Index $ 80.34 $ 135.01 $ 191.35 $ 279.96
EQ/Evergreen Omega $ 86.69 $ 153.88 $ 223.55 $ 344.44
EQ/FI Mid Cap $ 87.19 $ 155.34 $ 225.94 $ 349.31
EQ/FI Small/Mid Cap Value $ 88.18 $ 158.26 $ 230.71 $ 358.96
EQ/High Yield $ 83.91 $ 145.65 $ 210.05 $ 316.75
EQ/International Equity Index $ 88.18 $ 158.26 $ 230.71 $ 358.96
EQ/J.P. Morgan Core Bond $ 85.20 $ 149.48 $ 216.33 $ 329.71
- -----------------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------
IF YOU SURRENDER YOUR CONTRACT AT THE END OF
EACH PERIOD SHOWN, THE EXPENSES WOULD BE:
----------------------------------------------
1 YEAR 3 YEARS 5 YEARS 10 YEARS
- -----------------------------------------------------------------------------------------------
AXA Premier VIP Core Bond $ 31.70 $ 96.86 $ 164.42 $ 344.44
AXA Premier VIP Health Care $ 41.15 $ 124.53 $ 209.40 $ 428.25
AXA Premier VIP International Equity $ 40.62 $ 123.01 $ 206.95 $ 423.79
AXA Premier VIP Large Cap Core Equity $ 35.90 $ 109.22 $ 184.63 $ 382.65
AXA Premier VIP Large Cap Growth $ 35.90 $ 109.22 $ 184.63 $ 382.65
AXA Premier VIP Large Cap Value $ 35.90 $ 109.22 $ 184.63 $ 382.65
AXA Premier VIP Small/Mid Cap Growth $ 38.52 $ 116.90 $ 197.09 $ 405.74
AXA Premier VIP Small/Mid Cap Value $ 38.52 $ 116.90 $ 197.09 $ 405.74
AXA Premier VIP Technology $ 41.15 $ 124.53 $ 209.40 $ 428.25
EQ/Aggressive Stock $ 28.97 $ 88.76 $ 151.09 $ 318.75
EQ/Alliance Common Stock $ 27.30 $ 83.76 $ 142.82 $ 302.60
EQ/Alliance Global $ 30.65 $ 93.75 $ 159.31 $ 334.64
EQ/Alliance Growth and Income $ 28.34 $ 86.89 $ 148.00 $ 312.73
EQ/Alliance Growth Investors $ 28.34 $ 86.89 $ 148.00 $ 312.73
EQ/Alliance Intermediate Government Securities $ 28.24 $ 86.58 $ 147.48 $ 311.72
EQ/Alliance International $ 33.28 $ 101.51 $ 172.04 $ 358.96
EQ/Alliance Money Market $ 25.93 $ 79.68 $ 136.05 $ 289.28
EQ/Alliance Premier Growth $ 33.80 $ 103.05 $ 174.57 $ 363.75
EQ/Alliance Quality Bond $ 28.03 $ 85.95 $ 146.45 $ 309.70
EQ/Alliance Small Cap Growth $ 30.23 $ 92.51 $ 157.26 $ 330.70
EQ/Alliance Technology $ 33.80 $ 103.05 $ 174.57 $ 363.75
EQ/AXP New Dimensions $ 31.70 $ 96.86 $ 164.42 $ 344.44
EQ/AXP Strategy Aggressive $ 32.23 $ 98.41 $ 166.97 $ 349.31
EQ/Balanced $ 28.55 $ 87.51 $ 149.03 $ 314.74
EQ/Bernstein Diversified Value $ 31.70 $ 96.86 $ 164.42 $ 344.44
EQ/Calvert Socially Responsible $ 32.75 $ 99.96 $ 169.51 $ 354.14
EQ/Capital Guardian International $ 34.33 $ 104.60 $ 177.09 $ 368.51
EQ/Capital Guardian Research $ 31.70 $ 96.86 $ 164.42 $ 344.44
EQ/Capital Guardian U.S. Equity $ 31.70 $ 96.86 $ 164.42 $ 344.44
EQ/Emerging Markets Equity $ 40.62 $ 123.01 $ 206.95 $ 423.79
EQ/Equity 500 Index $ 24.99 $ 76.85 $ 131.35 $ 279.96
EQ/Evergreen Omega $ 31.70 $ 96.86 $ 164.42 $ 344.44
EQ/FI Mid Cap $ 32.23 $ 98.41 $ 166.97 $ 349.31
EQ/FI Small/Mid Cap Value $ 33.28 $ 101.51 $ 172.04 $ 358.96
EQ/High Yield $ 28.76 $ 88.14 $ 150.06 $ 316.75
EQ/International Equity Index $ 33.28 $ 101.51 $ 172.04 $ 358.96
EQ/J.P. Morgan Core Bond $ 30.13 $ 92.19 $ 156.75 $ 329.71
- ---------------------------------------------------------------------------------------------
Fee table 15
- ---------------------------------------------------------------------------------
IF YOU SURRENDER YOUR CONTRACT AT THE END OF
EACH PERIOD SHOWN, THE EXPENSES WOULD BE:
----------------------------------------------
1 YEAR 3 YEARS 5 YEARS 10 YEARS
- ---------------------------------------------------------------------------------
EQ/Janus Large Cap Growth $ 88.68 $ 159.72 $ 233.09 $ 363.75
EQ/Lazard Small Cap Value $ 88.18 $ 158.26 $ 230.71 $ 358.96
EQ/Marsico Focus $ 88.68 $ 159.72 $ 233.09 $ 363.75
EQ/Mercury Basic Value Equity $ 86.69 $ 153.88 $ 223.55 $ 344.44
EQ/MFS Emerging Growth Companies $ 86.89 $ 154.46 $ 224.50 $ 346.39
EQ/MFS Investors Trust $ 86.69 $ 153.88 $ 223.55 $ 344.44
EQ/MFS Research $ 86.69 $ 153.88 $ 223.55 $ 344.44
EQ/Putnam Growth & Income Value $ 86.69 $ 153.88 $ 223.55 $ 344.44
EQ/Putnam International Equity $ 89.67 $ 162.63 $ 237.83 $ 373.25
EQ/Putnam Voyager $ 86.69 $ 153.88 $ 223.55 $ 344.44
EQ/Small Company Index $ 85.70 $ 150.95 $ 218.74 $ 334.64
- ---------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------
IF YOU SURRENDER YOUR CONTRACT AT THE END OF
EACH PERIOD SHOWN, THE EXPENSES WOULD BE:
----------------------------------------------
1 YEAR 3 YEARS 5 YEARS 10 YEARS
- ---------------------------------------------------------------------------------
EQ/Janus Large Cap Growth $ 33.80 $ 103.05 $ 174.57 $ 363.75
EQ/Lazard Small Cap Value $ 33.28 $ 101.51 $ 172.04 $ 358.96
EQ/Marsico Focus $ 33.80 $ 103.05 $ 174.57 $ 363.75
EQ/Mercury Basic Value Equity $ 31.70 $ 96.86 $ 164.42 $ 344.44
EQ/MFS Emerging Growth Companies $ 31.91 $ 97.48 $ 165.44 $ 346.39
EQ/MFS Investors Trust $ 31.70 $ 96.86 $ 164.42 $ 344.44
EQ/MFS Research $ 31.70 $ 96.86 $ 164.42 $ 344.44
EQ/Putnam Growth & Income Value $ 31.70 $ 96.86 $ 164.42 $ 344.44
EQ/Putnam International Equity $ 34.85 $ 106.14 $ 179.61 $ 373.25
EQ/Putnam Voyager $ 31.70 $ 96.86 $ 164.42 $ 344.44
EQ/Small Company Index $ 30.65 $ 93.75 $ 159.31 $ 334.64
- ---------------------------------------------------------------------------------
EXAMPLES: EQUI-VEST(R) SERIES 100 AND 200 CONTRACTS
For each type of series 100 and 200 contract, the examples below show the
expenses that a hypothetical contract owner or participant, as applicable,
would pay in the situations illustrated. We assume a $1,000 contribution is
invested in one of the variable investment options listed, and a 5% annual
return is earned on the assets in that option.(1) The annual administrative
charge is based on charges that apply to a mix of estimated contract sizes,
resulting in an estimated administrative charge for the purpose of these
examples of $0.714 per $1,000. We also assume there is no waiver of the
withdrawal charge. The examples assume the continuation of Total Annual
Expenses (after expense limitation) shown for each Portfolio of the Trusts in
the table, above, for the entire one, three, five and ten year periods included
in the examples. Other than as indicated above, the charges and expenses used
to compute the examples below are the maximum expenses (taking into account the
expense limitation at an annual rate of 1.75% for the EQ/Aggressive Stock,
EQ/Balanced, EQ/Alliance Common Stock and EQ/Alliance Money Market options)
rather than the lower current charge.
These examples should not be considered a representation of past or future
expenses for each option. Actual expenses may be greater or less than those
shown. Similarly, the annual rate of return assumed in the examples is not an
estimate or guarantee of future investment performance.
IF YOU SURRENDER YOUR CONTRACT AT THE END OF EACH PERIOD SHOWN, THE EXPENSES
WOULD BE: FOR SEP, SARSEP, EDC AND ANNUITANT-OWNED HR-10 CONTRACTS:
- -----------------------------------------------------------------------------------------------
IF YOU SURRENDER YOUR CONTRACT AT THE END OF
EACH PERIOD SHOWN, THE EXPENSES WOULD BE:
----------------------------------------------
1 YEAR 3 YEARS 5 YEARS 10 YEARS
- -----------------------------------------------------------------------------------------------
AXA Premier VIP Core Bond $ 86.29 $ 140.88 $ 191.46 $ 312.51
AXA Premier VIP Health Care $ 95.17 $ 167.18 $ 234.99 $ 399.13
AXA Premier VIP International Equity $ 94.67 $ 165.73 $ 232.61 $ 394.53
AXA Premier VIP Large Cap Core Equity $ 90.24 $ 152.63 $ 211.01 $ 352.00
AXA Premier VIP Large Cap Growth $ 90.24 $ 152.63 $ 211.01 $ 352.00
AXA Premier VIP Large Cap Value $ 90.24 $ 152.63 $ 211.01 $ 352.00
AXA Premier VIP Small/Mid Cap Growth $ 92.70 $ 159.92 $ 223.07 $ 375.87
AXA Premier VIP Small/Mid Cap Value $ 92.70 $ 159.92 $ 223.07 $ 375.87
AXA Premier VIP Technology $ 95.17 $ 167.18 $ 234.99 $ 399.13
EQ/Aggressive Stock $ 80.96 $ 124.86 $ 164.52 $ 256.59
EQ/Alliance Common Stock $ 80.96 $ 124.86 $ 164.52 $ 256.59
EQ/Alliance Global $ 85.30 $ 137.93 $ 186.52 $ 302.39
EQ/Alliance Growth and Income $ 83.13 $ 131.41 $ 175.57 $ 279.74
EQ/Alliance Growth Investors $ 83.13 $ 131.41 $ 175.57 $ 279.74
EQ/Alliance Intermediate Government Securities $ 83.04 $ 131.11 $ 175.07 $ 278.70
EQ/Alliance International $ 87.77 $ 145.30 $ 198.83 $ 327.51
EQ/Alliance Money Market $ 80.96 $ 124.86 $ 164.52 $ 256.59
EQ/Alliance Premier Growth $ 88.26 $ 146.77 $ 201.28 $ 332.46
EQ/Alliance Quality Bond $ 82.84 $ 130.52 $ 174.07 $ 276.62
EQ/Alliance Small Cap Growth $ 84.91 $ 136.74 $ 184.53 $ 298.31
EQ/Alliance Technology $ 88.26 $ 146.77 $ 201.28 $ 332.46
EQ/AXP New Dimensions $ 86.29 $ 140.88 $ 191.46 $ 312.51
EQ/AXP Strategy Aggressive $ 86.78 $ 142.35 $ 193.92 $ 317.54
EQ/Balanced $ 80.96 $ 124.86 $ 164.52 $ 256.59
EQ/Bernstein Diversified Value $ 86.29 $ 140.88 $ 191.46 $ 312.51
EQ/Calvert Socially Responsible $ 87.28 $ 143.83 $ 196.38 $ 322.54
EQ/Capital Guardian International $ 88.76 $ 148.23 $ 203.72 $ 337.38
- -----------------------------------------------------------------------------------------------
16 Fee table
- --------------------------------------------------------------------------------
IF YOU SURRENDER YOUR CONTRACT AT THE END OF
EACH PERIOD SHOWN, THE EXPENSES WOULD BE:
----------------------------------------------
1 YEAR 3 YEARS 5 YEARS 10 YEARS
- ---------------------------------------------------------------------------------
EQ/Capital Guardian Research $ 86.29 $ 140.88 $ 191.46 $ 312.51
EQ/Capital Guardian U.S. Equity $ 86.29 $ 140.88 $ 191.46 $ 312.51
EQ/Emerging Markets Equity $ 94.67 $ 165.73 $ 232.61 $ 394.53
EQ/Equity 500 Index $ 79.98 $ 121.87 $ 159.46 $ 245.90
EQ/Evergreen Omega $ 86.29 $ 140.88 $ 191.46 $ 312.51
EQ/FI Mid Cap $ 86.78 $ 142.35 $ 193.92 $ 317.54
EQ/FI Small/Mid Cap Value $ 87.77 $ 145.30 $ 198.83 $ 327.51
EQ/High Yield $ 83.53 $ 132.59 $ 177.57 $ 283.90
EQ/International Equity Index $ 87.77 $ 145.30 $ 198.83 $ 327.51
EQ/J.P. Morgan Core Bond $ 84.81 $ 136.45 $ 184.04 $ 297.29
EQ/Janus Large Cap Growth $ 88.26 $ 146.77 $ 201.28 $ 332.46
EQ/Lazard Small Cap Value $ 87.77 $ 145.30 $ 198.83 $ 327.51
EQ/Marsico Focus $ 88.26 $ 146.77 $ 201.28 $ 332.46
EQ/Mercury Basic Value Equity $ 86.29 $ 140.88 $ 191.46 $ 312.51
EQ/MFS Emerging Growth Companies $ 86.49 $ 141.47 $ 192.45 $ 314.53
EQ/MFS Investors Trust $ 86.29 $ 140.88 $ 191.46 $ 312.51
EQ/MFS Research $ 86.29 $ 140.88 $ 191.46 $ 312.51
EQ/Putnam Growth & Income Value $ 86.29 $ 140.88 $ 191.46 $ 312.51
EQ/Putnam International Equity $ 89.25 $ 149.70 $ 206.16 $ 342.28
EQ/Putnam Voyager $ 86.29 $ 140.88 $ 191.46 $ 312.51
EQ/Small Company Index $ 85.30 $ 137.93 $ 186.52 $ 302.39
- ---------------------------------------------------------------------------------
FOR TSA AND UNIVERSITY TSA CONTRACTS:
- -----------------------------------------------------------------------------------------------
IF YOU SURRENDER YOUR CONTRACT AT THE END OF
EACH PERIOD SHOWN, THE EXPENSES WOULD BE:
----------------------------------------------
1 YEAR 3 YEARS 5 YEARS 10 YEARS
- -----------------------------------------------------------------------------------------------
AXA Premier VIP Core Bond $ 80.14 $ 134.41 $ 191.46 $ 312.51
AXA Premier VIP Health Care $ 89.07 $ 160.89 $ 234.99 $ 399.13
AXA Premier VIP International Equity $ 88.58 $ 159.43 $ 232.61 $ 394.53
AXA Premier VIP Large Cap Core Equity $ 84.11 $ 146.24 $ 211.01 $ 352.00
AXA Premier VIP Large Cap Growth $ 84.11 $ 146.24 $ 211.01 $ 352.00
AXA Premier VIP Large Cap Value $ 84.11 $ 146.24 $ 211.01 $ 352.00
AXA Premier VIP Small/Mid Cap Growth $ 86.59 $ 153.58 $ 223.07 $ 375.87
AXA Premier VIP Small/Mid Cap Value $ 86.59 $ 153.58 $ 223.07 $ 375.87
AXA Premier VIP Technology $ 89.07 $ 160.89 $ 234.99 $ 399.13
EQ/Aggressive Stock $ 74.78 $ 118.28 $ 164.52 $ 256.59
EQ/Alliance Common Stock $ 74.78 $ 118.28 $ 164.52 $ 256.59
EQ/Alliance Global $ 79.15 $ 131.44 $ 186.52 $ 302.39
EQ/Alliance Growth and Income $ 76.96 $ 124.88 $ 175.57 $ 279.74
EQ/Alliance Growth Investors $ 76.96 $ 124.88 $ 175.57 $ 279.74
EQ/Alliance Intermediate Government Securities $ 76.86 $ 124.58 $ 175.07 $ 278.70
EQ/Alliance International $ 81.63 $ 138.86 $ 198.83 $ 327.51
EQ/Alliance Money Market $ 74.78 $ 118.28 $ 164.52 $ 256.59
EQ/Alliance Premier Growth $ 82.12 $ 140.34 $ 201.28 $ 332.46
EQ/Alliance Quality Bond $ 76.67 $ 123.98 $ 174.07 $ 276.62
EQ/Alliance Small Cap Growth $ 78.75 $ 130.25 $ 184.53 $ 298.31
EQ/Alliance Technology $ 82.12 $ 140.34 $ 201.28 $ 332.46
EQ/AXP New Dimensions $ 80.14 $ 134.41 $ 191.46 $ 312.51
EQ/AXP Strategy Aggressive $ 80.64 $ 135.90 $ 193.92 $ 317.54
EQ/Balanced $ 74.78 $ 118.28 $ 164.52 $ 256.59
EQ/Bernstein Diversified Value $ 80.14 $ 134.41 $ 191.46 $ 312.51
EQ/Calvert Socially Responsible $ 81.13 $ 137.38 $ 196.38 $ 322.54
EQ/Capital Guardian International $ 82.62 $ 141.82 $ 203.72 $ 337.38
EQ/Capital Guardian Research $ 80.14 $ 134.41 $ 191.46 $ 312.51
EQ/Capital Guardian U.S. Equity $ 80.14 $ 134.41 $ 191.46 $ 312.51
EQ/Emerging Markets Equity $ 88.58 $ 159.43 $ 232.61 $ 394.53
EQ/Equity 500 Index $ 73.79 $ 115.28 $ 159.46 $ 245.90
EQ/Evergreen Omega $ 80.14 $ 134.41 $ 191.46 $ 312.51
EQ/FI Mid Cap $ 80.64 $ 135.90 $ 193.92 $ 317.54
EQ/FI Small/Mid Cap Value $ 81.63 $ 138.86 $ 198.83 $ 327.51
- -----------------------------------------------------------------------------------------------
Fee table 17
- ---------------------------------------------------------------------------------
IF YOU SURRENDER YOUR CONTRACT AT THE END OF
EACH PERIOD SHOWN, THE EXPENSES WOULD BE:
----------------------------------------------
1 YEAR 3 YEARS 5 YEARS 10 YEARS
- ---------------------------------------------------------------------------------
EQ/High Yield $ 77.36 $ 126.07 $ 177.57 $ 283.90
EQ/International Equity Index $ 81.63 $ 138.86 $ 198.83 $ 327.51
EQ/J.P. Morgan Core Bond $ 78.65 $ 129.95 $ 184.04 $ 297.29
EQ/Janus Large Cap Growth $ 82.12 $ 140.34 $ 201.28 $ 332.46
EQ/Lazard Small Cap Value $ 81.63 $ 138.86 $ 198.83 $ 327.51
EQ/Marsico Focus $ 82.12 $ 140.34 $ 201.28 $ 332.46
EQ/Mercury Basic Value Equity $ 80.14 $ 134.41 $ 191.46 $ 312.51
EQ/MFS Emerging Growth Companies $ 80.34 $ 135.01 $ 192.45 $ 314.53
EQ/MFS Investors Trust $ 80.14 $ 134.41 $ 191.46 $ 312.51
EQ/MFS Research $ 80.14 $ 134.41 $ 191.46 $ 312.51
EQ/Putnam Growth & Income Value $ 80.14 $ 134.41 $ 191.46 $ 312.51
EQ/Putnam International Equity $ 83.12 $ 143.29 $ 206.16 $ 342.28
EQ/Putnam Voyager $ 80.14 $ 134.41 $ 191.46 $ 312.51
EQ/Small Company Index $ 79.15 $ 131.44 $ 186.52 $ 302.39
- ---------------------------------------------------------------------------------
18 Fee table
FOR ALL SERIES 200 TRUSTEED CONTRACTS:
- -----------------------------------------------------------------------------------------------
IF YOU SURRENDER YOUR CONTRACT AT THE END OF
EACH PERIOD SHOWN, THE EXPENSES WOULD BE:
----------------------------------------------
1 YEAR 3 YEARS 5 YEARS 10 YEARS
- -----------------------------------------------------------------------------------------------
AXA Premier VIP Core Bond $ 80.14 $ 134.41 $ 191.46 $ 277.88
AXA Premier VIP Health Care $ 89.07 $ 160.89 $ 234.99 $ 367.56
AXA Premier VIP International Equity $ 88.58 $ 159.43 $ 232.61 $ 362.79
AXA Premier VIP Large Cap Core Equity $ 84.11 $ 146.24 $ 211.01 $ 318.75
AXA Premier VIP Large Cap Growth $ 84.11 $ 146.24 $ 211.01 $ 318.75
AXA Premier VIP Large Cap Value $ 84.11 $ 146.24 $ 211.01 $ 318.75
AXA Premier VIP Small/Mid Cap Growth $ 86.59 $ 153.58 $ 223.07 $ 343.47
AXA Premier VIP Small/Mid Cap Value $ 86.59 $ 153.58 $ 223.07 $ 343.47
AXA Premier VIP Technology $ 89.07 $ 160.89 $ 234.99 $ 367.56
EQ/Aggressive Stock $ 74.78 $ 118.28 $ 164.52 $ 219.99
EQ/Alliance Common Stock $ 74.78 $ 118.28 $ 164.52 $ 219.99
EQ/Alliance Global $ 79.15 $ 131.44 $ 186.52 $ 267.39
EQ/Alliance Growth and Income $ 76.96 $ 124.88 $ 175.57 $ 243.96
EQ/Alliance Growth Investors $ 76.96 $ 124.88 $ 175.57 $ 243.96
EQ/Alliance Intermediate Government Securities $ 76.86 $ 124.58 $ 175.07 $ 242.88
EQ/Alliance International $ 81.63 $ 138.86 $ 198.83 $ 293.40
EQ/Alliance Money Market $ 74.78 $ 118.28 $ 164.52 $ 219.99
EQ/Alliance Premier Growth $ 82.12 $ 140.34 $ 201.28 $ 298.52
EQ/Alliance Quality Bond $ 76.67 $ 123.98 $ 174.07 $ 240.72
EQ/Alliance Small Cap Growth $ 78.75 $ 130.25 $ 184.53 $ 263.17
EQ/Alliance Technology $ 82.12 $ 140.34 $ 201.28 $ 298.52
EQ/AXP New Dimensions $ 80.14 $ 134.41 $ 191.46 $ 277.88
EQ/AXP Strategy Aggressive $ 80.64 $ 135.90 $ 193.92 $ 283.08
EQ/Balanced $ 74.78 $ 118.28 $ 164.52 $ 219.99
EQ/Bernstein Diversified Value $ 80.14 $ 134.41 $ 191.46 $ 277.88
EQ/Calvert Socially Responsible $ 81.13 $ 137.38 $ 196.38 $ 288.25
EQ/Capital Guardian International $ 82.62 $ 141.82 $ 203.72 $ 303.62
EQ/Capital Guardian Research $ 80.14 $ 134.41 $ 191.46 $ 277.88
EQ/Capital Guardian U.S. Equity $ 80.14 $ 134.41 $ 191.46 $ 277.88
EQ/Emerging Markets Equity $ 88.58 $ 159.43 $ 232.61 $ 362.79
EQ/Equity 500 Index $ 73.79 $ 115.28 $ 159.46 $ 208.92
EQ/Evergreen Omega $ 80.14 $ 134.41 $ 191.46 $ 277.88
EQ/FI Mid Cap $ 80.64 $ 135.90 $ 193.92 $ 283.08
EQ/FI Small/Mid Cap Value $ 81.63 $ 138.86 $ 198.83 $ 293.40
EQ/High Yield $ 77.36 $ 126.07 $ 177.57 $ 248.26
EQ/International Equity Index $ 81.63 $ 138.86 $ 198.83 $ 293.40
EQ/J.P. Morgan Core Bond $ 78.65 $ 129.95 $ 184.04 $ 262.11
EQ/Janus Large Cap Growth $ 82.12 $ 140.34 $ 201.28 $ 298.52
EQ/Lazard Small Cap Value $ 81.63 $ 138.86 $ 198.83 $ 293.40
EQ/Marsico Focus $ 82.12 $ 140.34 $ 201.28 $ 298.52
EQ/Mercury Basic Value Equity $ 80.14 $ 134.41 $ 191.46 $ 277.88
EQ/MFS Emerging Growth Companies $ 80.34 $ 135.01 $ 192.45 $ 279.96
EQ/MFS Investors Trust $ 80.14 $ 134.41 $ 191.46 $ 277.88
EQ/MFS Research $ 80.14 $ 134.41 $ 191.46 $ 277.88
EQ/Putnam Growth & Income Value $ 80.14 $ 134.41 $ 191.46 $ 277.88
EQ/Putnam International Equity $ 83.12 $ 143.29 $ 206.16 $ 308.69
EQ/Putnam Voyager $ 80.14 $ 134.41 $ 191.46 $ 277.88
EQ/Small Company Index $ 79.15 $ 131.44 $ 186.52 $ 267.39
- -----------------------------------------------------------------------------------------------
Fee table 19
IF YOU DO NOT SURRENDER YOUR CONTRACT AT THE END OF EACH PERIOD SHOWN, THE
EXPENSES WOULD BE: FOR ALL SERIES 100 AND 200 CONTRACTS:
- ------------------------------------------------------------------------------------------------
IF YOU SURRENDER YOUR CONTRACT AT THE END OF
EACH PERIOD SHOWN, THE EXPENSES WOULD BE:
----------------------------------------------
1 YEAR 3 YEARS 5 YEARS 10 YEARS
- ------------------------------------------------------------------------------------------------
AXA Premier VIP Core Bond $ 24.78 $ 76.22 $ 130.30 $ 277.88
AXA Premier VIP Health Care $ 34.22 $ 104.29 $ 176.59 $ 367.56
AXA Premier VIP International Equity $ 33.70 $ 102.75 $ 174.06 $ 362.79
AXA Premier VIP Large Cap Core Equity $ 28.97 $ 88.76 $ 151.09 $ 318.75
AXA Premier VIP Large Cap Growth $ 28.97 $ 88.76 $ 151.09 $ 318.75
AXA Premier VIP Large Cap Value $ 28.97 $ 88.76 $ 151.09 $ 318.75
AXA Premier VIP Small/Mid Cap Growth $ 31.60 $ 96.55 $ 163.91 $ 343.47
AXA Premier VIP Small/Mid Cap Value $ 31.60 $ 96.55 $ 163.91 $ 343.47
AXA Premier VIP Technology $ 34.22 $ 104.29 $ 176.59 $ 367.56
EQ/Aggressive Stock $ 19.11 $ 59.12 $ 101.65 $ 219.99
EQ/Alliance Common Stock $ 19.11 $ 59.12 $ 101.65 $ 219.99
EQ/Alliance Global $ 23.73 $ 73.07 $ 125.04 $ 267.39
EQ/Alliance Growth and Income $ 21.42 $ 66.11 $ 113.40 $ 243.96
EQ/Alliance Growth Investors $ 21.42 $ 66.11 $ 113.40 $ 243.96
EQ/Alliance Intermediate Government Securities $ 21.32 $ 65.80 $ 112.87 $ 242.88
EQ/Alliance International $ 26.35 $ 80.94 $ 138.14 $ 293.40
EQ/Alliance Money Market $ 19.11 $ 59.12 $ 101.65 $ 219.99
EQ/Alliance Premier Growth $ 26.88 $ 82.51 $ 140.74 $ 298.52
EQ/Alliance Quality Bond $ 21.11 $ 65.16 $ 111.80 $ 240.72
EQ/Alliance Small Cap Growth $ 23.31 $ 71.81 $ 122.93 $ 263.17
EQ/Alliance Technology $ 26.88 $ 82.51 $ 140.74 $ 298.52
EQ/AXP New Dimensions $ 24.78 $ 76.22 $ 130.30 $ 277.88
EQ/AXP Strategy Aggressive $ 25.30 $ 77.80 $ 132.92 $ 283.08
EQ/Balanced $ 19.11 $ 59.12 $ 101.65 $ 219.99
EQ/Bernstein Diversified Value $ 24.78 $ 76.22 $ 130.30 $ 277.88
EQ/Calvert Socially Responsible $ 25.83 $ 79.37 $ 135.53 $ 288.25
EQ/Capital Guardian International $ 27.40 $ 84.07 $ 143.34 $ 303.62
EQ/Capital Guardian Research $ 24.78 $ 76.22 $ 130.30 $ 277.88
EQ/Capital Guardian U.S. Equity $ 24.78 $ 76.22 $ 130.30 $ 277.88
EQ/Emerging Markets Equity $ 33.70 $ 102.75 $ 174.06 $ 362.79
EQ/Equity 500 Index $ 18.06 $ 55.94 $ 96.27 $ 208.92
EQ/Evergreen Omega $ 24.78 $ 76.22 $ 130.30 $ 277.88
EQ/FI Mid Cap $ 25.30 $ 77.80 $ 132.92 $ 283.08
EQ/FI Small/Mid Cap Value $ 26.35 $ 80.94 $ 138.14 $ 293.40
EQ/High Yield $ 21.84 $ 67.38 $ 115.52 $ 248.26
EQ/International Equity Index $ 26.35 $ 80.94 $ 138.14 $ 293.40
EQ/J.P. Morgan Core Bond $ 23.20 $ 71.49 $ 122.40 $ 262.11
EQ/Janus Large Cap Growth $ 26.88 $ 82.51 $ 140.74 $ 298.52
EQ/Lazard Small Cap Value $ 26.35 $ 80.94 $ 138.14 $ 293.40
EQ/Marsico Focus $ 26.88 $ 82.51 $ 140.74 $ 298.52
EQ/Mercury Basic Value Equity $ 24.78 $ 76.22 $ 130.30 $ 277.88
EQ/MFS Emerging Growth Companies $ 24.99 $ 76.85 $ 131.35 $ 279.96
EQ/MFS Investors Trust $ 24.78 $ 76.22 $ 130.30 $ 277.88
EQ/MFS Research $ 24.78 $ 76.22 $ 130.30 $ 277.88
EQ/Putnam Growth & Income Value $ 24.78 $ 76.22 $ 130.30 $ 277.88
EQ/Putnam International Equity $ 27.93 $ 85.64 $ 145.93 $ 308.69
EQ/Putnam Voyager $ 24.78 $ 76.22 $ 130.30 $ 277.88
EQ/Small Company Index $ 23.73 $ 73.07 $ 125.04 $ 267.39
- -----------------------------------------------------------------------------------------------
(1) The amount accumulated from the $1,000 contribution could not be paid in
the form of an annuity at the end of any of the periods shown in the
examples. This is because if the amount applied to purchase an annuity
payout option is less than $2,000, or the initial payment is less than
$20, we may pay the amount to you in a single sum instead of as payments
under an annuity payout option. See "Accessing your money" later in this
Prospectus.
IF YOU ELECT A VARIABLE IMMEDIATE ANNUITY PAYOUT OPTION:
Assuming an annuity payout option could be issued, (see note (1) above), and
you elect a Variable Immediate Annuity payout option, the expenses shown in the
above example of "if you do not surrender your contract" would, in each case,
be increased by $5.44 based on the average amount applied to annuity payout
options in 2001. See "Annuity administrative fee" under "Charges and expenses"
later in this Prospectus.
CONDENSED FINANCIAL INFORMATION
Please see Appendix I at the end of this Prospectus, for the unit values and
number of units outstanding as of the periods shown for each of the variable
investment options, available as of December 31, 2001.
20 Fee table
1. Contract features and benefits
- --------------------------------------------------------------------------------
HOW YOU CAN PURCHASE AND CONTRIBUTE TO YOUR CONTRACT
You may purchase a contract by making payments to us that we call
"contributions." We require a minimum contribution amount of $20 for each type
and series of contract purchased. If the total annual contributions to a TSA
will be at least $200 annually, we may accept contributions of less than $20.
The minimum contribution amount under our automatic investment program is $20
($50 for series 300 and 400). We discuss the automatic investment program under
"About other methods of payment" in "More information" later in this
Prospectus. The following table summarizes our rules regarding contributions to
your contract.
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CONTRACT TYPE SOURCE OF CONTRIBUTIONS LIMITATIONS ON CONTRIBUTIONS
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SEP o Employer. o Annual employer contributions up to the lesser
o Eligible rollover distributions from other traditional IRAs, of $40,00 or 25% of employee compensation.
403(b) plans, qualified plans and governmental EDC plans. o Limits on contributions after age 70-1/2.
SARSEP o Employer remitted employee salary reduction and/or non- o Annual employer contributions up to the lesser
elective employer contributions (pre 1997 plans only). of $40,00 or 25% of employee compensation.
o Additional "catch-up" contributions. o Maximum salary reduction contribution is
o Eligible rollover distributions from other traditional IRAs, $11,000 for 2002.
403(b) plans, qualified plans and governmental EDC plans. o If plan permits, an individual at least age 50
at any time during 2002 can make up to $1,000
additional salary reduction contributions.
o Limits on contributions after age 70-1/2.
SIMPLE IRA o Employee salary reduction; employer match. o Salary reduction contributions up to $7,000
o Additional "catch-up" contributions. for 2002; employer matching contributions up
o Rollover distributions or direct transfer distributions from to 3% of employee compensation.
other SIMPLE IRAs. o If plan permits, additional salary reduction
catch-up contributions totalling up to $500
can be made where the owner is at least age 50
at any time during 2002.
o Limits on contributions after age 70-1/2.
Unincorporated o Employer, including for self employed. o For 2002, maximum amount of employer and
and Corporate o Salary reduction 401(k) if plan permits. employee contributions is generally the lesser
Trusteed o Additional "catch-up" contributions. of $40,000 or 100% of compensation, with
o Eligible rollover distributions from other qualified plans, maximum salary reduction contribution of
403(b) plans, governmental EDC plans and traditional $11,000.
IRAs, subject to recipient plan approval. o If your employer's plan permits, additional
salary reduction catch-up contributions
totalling up to $1,000 can be made where
you are at least age 50 at any time during
2002.
TSA and o Employer remitted employee salary reduction and/or o For 2002 maximum amount of employer and
University TSA various types of employer contributions. employee contributions is generally the lesser
o Additional "catch-up" contributions. of $40,000 or 100% of compensation, with
o Direct transfers from another contract or arrangement maximum salary reduction contribution of
under Section 403(b) of the Internal Revenue Code, $11,000.
complying with IRS Revenue Ruling 90-24. o If your employer's plan permits, additional
o Subject to recipient plan approval, eligible rollover salary reduction catch-up contributions
distributions from other 403(b) plans, 401(a) plans, totalling up to $1,000 can be made where you
governmental EDC plans and traditional IRAs. are at least age 50 at any time during 2002.
o Rollover or direct transfer contributions after
age 70-1/2 must be net of required minimum
distributions.
o Different sources of contributions and earnings
may be subject to withdrawal restrictions.
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Contract features and benefits 21
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CONTRACT TYPE SOURCE OF CONTRIBUTIONS LIMITATIONS ON CONTRIBUTIONS
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EDC o Employer remitted employee salary reduction and/or o Contributions subject to plan limits. Maximum
employer contributions. contribution for 2002 is lesser of $11,000 or 100%
o For governmental EDC plans only, additional "age 50 of includible compensation.
catch-up" contributions. o If plan permits, an individual may make catch-up
o For governmental EDC plans only and subject to recipient contributions for 3 years of service preceding
plan approval, eligible rollover distributions from other plan retirement age, 2002 maximum is $22,000.
governmental EDC plans, 403(b) plans, qualified plans and o If governmental EDC plan permits, an individual at
traditional IRAs. least age 50 at any time during 2002 may be able
to make up to $1,000 additional salary reduction
catch-up contribution. This must be coordinated
with the catch-up contributions for 3 years of
service preceding plan retirement age.
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IRA FUNDING. The contracts we issue to fund SEP, SARSEP and SIMPLE IRA programs
are individual retirement annuities, or "IRAs." Internal Revenue Service
("IRS") rules for traditional IRA also generally apply to those programs.
----------------
See "Tax information" later in this Prospectus for a more detailed discussion
of sources of contributions, certain contribution limitations and other tax
information. We may refuse to accept any contribution if the sum of all
contributions under all EQUI-VEST(R) contracts with the same annuitant would
then total more than $1,500,000. We may also refuse to accept any contribution
if the sum of all contributions under all Equitable Life annuity accumulation
contracts that you own would then total more than $2,500,000.
For information on when contributions are credited see "Dates and prices at
which contract events occur" under "More information" later in this Prospectus.
22 Contract features and benefits
CONTRIBUTIONS TO SARSEP, CORPORATE TRUSTEED AND CERTAIN HR-10 CONTRACTS
We no longer offer the EQUI-VEST(R) contracts under SARSEP, Corporate Trusteed
and Annuitant-Owned HR-10 plans, except as noted below:
o If you established a SARSEP before 1997, you may continue to make
contributions for existing and new employees under salary reduction
arrangements. We will issue a contract to each participating employee for
whom a contract has not previously been issued.
o If you are an incorporated employer and already have a retirement plan funded
by the EQUI-VEST(R) contracts, we will enroll new employees under your
contract and accept contributions for existing employees.
o If an employer established an HR-10 plan where EQUI-VEST(R) contracts are
owned by the annuitant, rather than by a trustee, we will offer
Annuitant-Owned HR-10 contracts to new employees and continue to accept
contributions for all participating employees.
o If a retirement plan is qualified under section 401(a) of the Internal
Revenue Code and is sponsored by a state or local governmental entity.
OWNER AND ANNUITANT REQUIREMENTS
For the following employer-funded programs, the employee must be the owner and
the annuitant on the contract: SEP-IRA, SARSEP-IRA, SIMPLE-IRA, TSA, University
TSA and Annuitant HR-10.
The trustee under Trusteed HR-10 corporate retirement and governmental plans is
the owner of the contract. In each case, the employee is the annuitant. We do
not act as trustee for these plans. Only Trusteed contracts may be sold in
Puerto Rico and the tax aspects that apply to such contracts may differ from
those described in this prospectus.
Under EDC contracts, the employer or a trust must be the owner and the employee
is the annuitant.
HOW YOU CAN MAKE YOUR CONTRIBUTIONS
Except as noted below, contributions must be made by check drawn on a U.S.
bank, in U.S. dollars, and made payable to "Equitable Life." We do not accept
third-party checks endorsed to us except for rollover contributions, tax-free
exchanges or trustee checks that involve no refund. All checks are subject to
our ability to collect the funds. We reserve the right to reject a payment if
it is received in an unacceptable form.
Additional contributions may be made by our automatic investment program. The
method of payment is discussed in detail in "About other methods of payment" in
"More information" later in this Prospectus.
Your initial contribution must generally be accompanied by an application and
any other form we need to process the contribution. If any information is
missing or unclear we will try to obtain that information. If we are unable to
obtain all the information we require within five business days after we
receive an incomplete application or form, we will inform the financial
professional submitting the application on your behalf. We will then return the
contribution to you unless you specifically direct us to keep your contribution
until we receive the required information.
Generally, you may make additional contributions at any time. You may do so in
single sum amounts, on a regular basis, or as your financial situation permits.
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Our "business day" generally is any day on which the New York Stock Exchange is
open for trading. A business day does not include any day we choose not to open
due to emergency conditions. We may also close early due to emergency
conditions.
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WHAT ARE YOUR INVESTMENT OPTIONS UNDER THE CONTRACT?
Your investment options, subject to any employer plan limitations, are the
variable investment options, the guaranteed interest option, and the fixed
maturity options available under the investment method you select (see
"Selecting your investment method").
VARIABLE INVESTMENT OPTIONS
Your investment results in any one of the variable investment options will
depend on the investment performance of the underlying portfolios. You can lose
your principal when investing in the variable investment options. In periods of
poor market performance, the net return, after charges and expenses, may result
in negative yields, including for the EQ/Alliance Money Market variable
investment option. Listed below are the currently available portfolios, their
investment objectives, and their advisers.
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Contractholders can choose from among the variable investment options, the
guaranteed interest option and fixed maturity options. subject to certain
restrictions.
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Contract features and benefits 23
PORTFOLIOS OF THE TRUSTS
You should note that some portfolios have objectives and strategies that are
substantially similar to those of certain funds that are purchased directly
rather than under a variable insurance product such as an EQUI-VEST(R)
contract. These portfolios may even have the same manager(s) and/or a similar
name. However, there are numerous factors that can contribute to differences in
performance between two investments, particularly over short periods of time.
Such factors include the timing of stock purchases and sales; differences in
fund cash flows; and specific strategies employed by the portfolio manager.
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AXA PREMIER VIP TRUST:
PORTFOLIO NAME OBJECTIVE ADVISER(S)
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AXA Premier VIP Core Bond* Seeks a balance of a high current income and capital BlackRock Advisors, Inc.
appreciation consistent with a prudent level of risk Pacific Investment Management Company LLC
AXA Premier VIP Health Care* Long-term growth of capital AIM Capital Management, Inc.
Dresdner RCM Global Investors LLC
Wellington Management Company, LLP
AXA Premier VIP International Long-term growth of capital Alliance Capital Management L.P., through
Equity* its Bernstein Investment Research and
Management Unit
Bank of Ireland Asset Management (U.S.)
Limited
OppenheimerFunds, Inc.
AXA Premier VIP Large Cap Core Long-term growth of capital Alliance Capital Management L.P., through
Equity* its Bernstein Investment Research and
Management Unit
Janus Capital Management LLC
Thornburg Investment Management, Inc.
AXA Premier VIP Large Cap Long-term growth of capital Alliance Capital Management L.P.
Growth* Dresdner RCM Global Investors LLC
TCW Investment Management Company
AXA Premier VIP Large Cap Value* Long-term growth of capital Alliance Capital Management L.P.
Institutional Capital Corporation
MFS Investment Management
AXA Premier VIP Small/Mid Cap Long-term growth of capital Alliance Capital Management L.P.
Growth* MFS Investment Management
RS Investment Management, L.P.
AXA Premier VIP Small/Mid Cap Long-term growth of capital AXA Rosenberg Investment Management LLC
Value* The Boston Company Asset Management, LLC
TCW Investment Management Company
AXA Premier VIP Technology* Long-term growth of capital Alliance Capital Management L.P.
Dresdner RCM Global Investors LLC
Firsthand Capital Management, Inc.
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EQ ADVISORS TRUST:
PORTFOLIO NAME OBJECTIVE ADVISER(S)
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EQ/Aggressive Stock Seeks to achieve long-term growth of capital Alliance Capital Management L.P.
Marsico Capital Management, LLC
MFS Investment Management
Provident Investment Counsel, Inc.
EQ/Alliance Common Stock Seeks to achieve long-term growth of capital Alliance Capital Management L.P.
and increased income
EQ/Alliance Global Seeks long-term growth of capital Alliance Capital Management L.P.
EQ/Alliance Growth and Income Seeks to provide a high total return Alliance Capital Management L.P.
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24 Contract features and benefits
PORTFOLIOS OF THE TRUSTS (CONTINUED)
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PORTFOLIO NAME OBJECTIVE ADVISER(S)
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EQ/Alliance Growth Investors Seeks to achieve the highest total return consistent Alliance Capital Management L.P.
with the Adviser's determination of reasonable risk
EQ/Alliance Intermediate Seeks to achieve high current income consistent with Alliance Capital Management L.P.
Government Securities relative stability of principal
EQ/Alliance International Seeks long-term growth of capital Alliance Capital Management L.P.
(including through its Bernstein
Investment Research and Management Unit)
EQ/Alliance Money Market Seeks to obtain a high level of current income, Alliance Capital Management L.P.
preserve its assets and maintain liquidity
EQ/Alliance Premier Growth Seeks long-term growth of capital Alliance Capital Management L.P.
EQ/Alliance Quality Bond Seeks to achieve high current income consistent Alliance Capital Management L.P.
with moderate risk of capital
EQ/Alliance Small Cap Growth Seeks to achieve long-term growth of capital Alliance Capital Management L.P.
EQ/Alliance Technology Seeks to achieve growth of capital. Current income Alliance Capital Management L.P.
is incidental to the Portfolio's objective
EQ/AXP New Dimensions Seeks long-term growth of capital American Express Financial Corporation
EQ/AXP Strategy Aggressive Seeks long-term growth of capital American Express Financial Corporation
EQ/Balanced Seeks to achieve a high return through both Alliance Capital Management L.P.
appreciation of capital and current income Capital Guardian Trust Company
Jennison Associates, LLC
Prudential Investments LLC
Mercury Advisors
EQ/Bernstein Diversified Value Seeks capital appreciation Alliance Capital Management L.P.,
through its Bernstein Investment Research
Management Unit
EQ/Calvert Socially Responsible Seeks long-term capital appreciation Calvert Asset Management Company, Inc.
Brown Capital Management, Inc.
EQ/Capital Guardian International Seeks long-term growth of capital Capital Guardian Trust Company
EQ/Capital Guardian Research Seeks long-term growth of capital Capital Guardian Trust Company
EQ/Capital Guardian U.S. Equity Seeks long-term growth of capital Capital Guardian Trust Company
EQ/Emerging Markets Equity Seeks long-term capital appreciation Morgan Stanley Investment Management
EQ/Equity 500 Index Seeks a total return before expenses that Alliance Capital Management L.P.
approximates the total return performance of the
S&P 500 Index, including reinvestment of dividends,
at a risk level consistent with that of the S&P
500 Index
EQ/Evergreen Omega Seeks long-term capital growth Evergreen Investment Management Company,
LLC
EQ/FI Mid Cap Seeks long-term growth of capital Fidelity Management & Research Company
EQ/FI Small/Mid Cap Value Seeks long-term capital appreciation Fidelity Management & Research Company
EQ/High Yield Seeks to achieve a high total return through a Alliance Capital Management L.P.
combination of current income and capital
appreciation
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Contract features and benefits 25
PORTFOLIOS OF THE TRUSTS (CONTINUED)
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PORTFOLIO NAME OBJECTIVE ADVISER(S)
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EQ/International Equity Index Seeks to replicate as closely as possible (before Deutsche Asset Management Inc.
deduction of Portfolio expenses) the total return
of the MSCI EAFE Index
EQ/J.P. Morgan Core Bond Seeks to provide a high total return consistent with J.P. Morgan Investment Management, Inc.
moderate risk of capital and maintenance of liquidity
EQ/Janus Large Cap Growth Seeks long-term growth of capital Janus Capital Management LLC
EQ/Lazard Small Cap Value Seeks capital appreciation Lazard Asset Management
EQ/Marsico Focus* Seeks to achieve long-term growth of capital Marsico Capital Management, LLC
EQ/Mercury Basic Value Equity Seeks capital appreciation and secondarily, income Mercury Advisors
EQ/MFS Emerging Growth Seeks to provide long-term capital growth MFS Investment Management
Companies
EQ/MFS Investors Trust Seeks long-term growth of capital with a secondary MFS Investment Management
objective to seek reasonable current income
EQ/MFS Research Seeks to provide long-term growth of capital and MFS Investment Management
future income
EQ/Putnam Growth & Income Seeks capital growth. Current income is a secondary Putnam Investment Management, LLC
Value objective
EQ/Putnam International Equity Seeks capital appreciation Putnam Investment Management, LLC
EQ/Putnam Voyager Seeks long-term growth of capital and any increased Putnam Investment Management, LLC
income that results from this growth
EQ/Small Company Index Seeks to replicate as closely as possible (before Deutsche Asset Management Inc.
deduction of Portfolio expenses) the total return
of the Russell 2000 Index
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* Subject to state availability.
Other important information about the portfolios is included in the
prospectuses for each Trust attached at the end of this prospectus.
26 Contract features and benefits
GUARANTEED INTEREST OPTION
The guaranteed interest option is part of our general account and pays interest
at guaranteed rates. We discuss our general account in "More information."
We credit interest daily to amounts in the guaranteed interest option. There
are three levels of interest in effect at the same time in the guaranteed
interest option:
(1) the minimum interest rate guaranteed over the life of the contract,
(2) the yearly guaranteed interest rate for the calendar year, and
(3) the current interest rate.
We set current interest rates periodically, according to our procedures that we
have in effect at the time. All interest rates are effective annual rates, but
before deduction of annual administrative charges or any withdrawal charges.
We assign an interest rate to each amount allocated to the guaranteed interest
option. This rate is guaranteed for a specified period. An exception to this
approach applies to Corporate Trusteed contracts and EDC contracts issued to
government employees in New York whose EQUI-VEST(R) funding arrangements became
effective on and after July 1, 1989. Generally, we assign an interest rate to
the total amounts invested in Corporate Trusteed and EDC contracts issued to
government employees in New York regardless of when allocations were made to
the guaranteed interest option.
The minimum yearly guaranteed interest rate is 3% for the year 2002. The yearly
guaranteed interest rate we set will never be less than the minimum guaranteed
interest rate of 3% for the life of the contract. The rate is 4% for
EQUI-VEST(R) Corporate Trusteed contracts and Keogh Trusteed contracts. Current
interest rates will never be less than the yearly guaranteed rate.
FIXED MATURITY OPTIONS
We offer fixed maturity options with maturity dates ranging from one to ten
years (one to seven in Oregon) in states where they are approved. You can
allocate your contributions to one or more of these fixed maturity options.
However, you may not allocate more than one contribution to any one fixed
maturity option. Your contributions will accumulate interest at the "rate to
maturity" for each fixed maturity option. The total amount you allocate to and
accumulate in each fixed maturity option is called the "fixed maturity amount."
The fixed maturity options are not available in contracts issued in Maryland.
Your financial professional can provide your state's approval status. For
contracts issued in New York, see "Charges and expenses" for information on
withdrawal charges when amounts are allocated to the fixed maturity options.
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Fixed maturity options range from one to ten years to maturity.
- --------------------------------------------------------------------------------
The rate to maturity you will receive for each fixed maturity option is the
rate to maturity in effect for new contributions allocated to that fixed
maturity option on the date we apply your contribution. If you make any
withdrawals or transfers from a fixed maturity option before the maturity date,
we will make a "market value adjustment" that may increase or decrease any
fixed maturity amount you have left in that fixed maturity option. We discuss
the market value adjustment below and in greater detail later in this
Prospectus in "More information."
On the maturity date of a fixed maturity option, your fixed maturity amount,
assuming you have not made any withdrawals or transfers, will equal your
contribution to that fixed maturity option plus interest, at the rate to
maturity for that contribution, to the date of the calculation. This is the
fixed maturity option's "maturity value." Before maturity, the current value we
will report for your fixed maturity amount will reflect a market value
adjustment. Your current value will reflect the market value adjustment that we
would make if you were to withdraw all of your fixed maturity amounts on the
date of the report. We call this your "market adjusted amount."
FIXED MATURITY OPTIONS AND MATURITY DATES. We currently offer fixed maturity
options ending on June 15th for each of the maturity years 2003 through 2012.
Not all of these fixed maturity options will be available for annuitants ages
76 and older. See "Allocating your contributions." As fixed maturity options
expire, we expect to add maturity years so that generally 10 fixed maturity
options are available at any time.
We will not accept allocations to a fixed maturity option if on the date the
contribution is to be applied:
o you previously allocated a contribution or made a transfer to the same fixed
maturity option; or
o the rate to maturity is 3%; or
o the fixed maturity option's maturity date is within 45 days; or
o the fixed maturity option's maturity date is later than the date annuity
payments are to begin.
YOUR CHOICES AT THE MATURITY DATE. We will notify you at least 45 days before
each of your fixed maturity options is scheduled to mature. At that time, you
may choose to have one of the following take place on the maturity date, as
long as none of the conditions listed above or in "Allocating your
contributions," would apply:
(a) transfer the maturity value into another available fixed maturity option,
or into any of the variable investment options; or
(b) withdraw the maturity value (there may be a withdrawal charge).
If we do not receive your choice on or before the fixed maturity option's
maturity date, we will automatically transfer your maturity value into the
fixed maturity option that will mature next (or another investment option if we
are required to do so by any state regulation). We may change our procedures in
the future.
MARKET VALUE ADJUSTMENT. If you make any withdrawals (including transfers,
surrender or termination of your contract or when we make deductions for
charges) from a fixed maturity option before it matures, we will make a market
value adjustment, which will increase or decrease any fixed maturity amount you
have in that fixed maturity option. The amount of the adjustment will depend on
two factors:
(a) the difference between the rate to maturity that applies to the amount
being withdrawn and the rate to maturity in effect at that time for new
allocations to that same fixed maturity option, and
(b) the length of time remaining until the maturity date.
Contract features and benefits 27
In general, if interest rates rise from the time that you originally allocate
an amount to a fixed maturity option to the time that you take a withdrawal,
the market value adjustment will be negative. Likewise, if interest rates drop
at the end of that time, the market value adjustment will be positive. Also,
the amount of the market value adjustment, either up or down, will be greater
the longer the time remaining until the fixed maturity option's maturity date.
Therefore, it is possible that the market value adjustment could greatly reduce
your value in the fixed maturity options, particularly in the fixed maturity
options with later maturity dates.
We provide an illustration of the market adjusted amount of specified maturity
values, an explanation of how we calculate the market value adjustment, and
information concerning our general account and investments purchased with
amounts allocated to the fixed maturity options, in "More information" later in
this Prospectus. Appendix III at the end of this Prospectus provides an example
of how the market value adjustment is calculated.
SELECTING YOUR INVESTMENT METHOD
You must choose one of the following two methods for selecting your investment
options:
o Maximum investment options choice. Under this method, you may allocate
contributions or transfer funds to any of the available investment options
listed in A and B in the investment options chart. You can make transfers
whenever you choose. However, there will be restrictions on the amount you
can transfer out of the guaranteed interest option listed in A.
o Maximum transfer flexibility. Under this method, you may allocate
contributions or transfer funds to any of the available investment options
listed in A in the investment options chart and no transfer restrictions
will apply.
o Temporary removal of transfer restrictions that apply to the investment
methods. From time to time, we may remove certain restrictions that apply
to your investment method. If we do so, we will tell you. We will also
tell you at least 45 days in advance of the day that we intend to reimpose
the transfer restrictions. When we reimpose the transfer restrictions that
apply to your investment method, amounts that are in any investment
options that are not available under your investment method can remain in
these options, but you will not be permitted to allocate new contributions
or make additional transfers (including through our rebalancing program)
into these options.
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INVESTMENT OPTIONS
- --------------------------------------------------------------------------------
A
- --------------------------------------------------------------------------------
o Guaranteed Interest Option
- --------------------------------------------------------------------------------
DOMESTIC STOCKS INTERNATIONAL STOCKS
- --------------------------------------------------------------------------------
o AXA Premier VIP Health Care o AXA Premier VIP International Equity
o AXA Premier VIP Large Cap Core o EQ/Alliance Global
Equity o EQ/Alliance International
o AXA Premier VIP Large Cap Growth o EQ/Capital Guardian International
o AXA Premier VIP Large Cap Value o EQ/Emerging Markets Equity
o AXA Premier VIP Small/Mid Cap o EQ/International Equity Index
Growth o EQ/Putnam International Equity
o AXA Premier VIP Small/Mid Cap Value
o AXA Premier VIP Technology
o EQ/Aggressive Stock
o EQ/Alliance Common Stock
o EQ/Alliance Growth and Income
o EQ/Alliance Premier Growth
o EQ/Alliance Small Cap Growth
o EQ/Alliance Technology
o EQ/AXP New Dimensions
o EQ/AXP Strategy Aggressive
o EQ/Bernstein Diversified Value
o EQ/Calvert Socially Responsible
o EQ/Capital Guardian Research
o EQ/Capital Guardian U.S. Equity
o EQ/Equity 500 Index
o EQ/Evergreen Omega
o EQ/FI Mid Cap
o EQ/FI Small/Mid Cap
o EQ/Janus Large Cap Growth
o EQ/Lazard Small Cap Value
o EQ/Marsico Focus
o EQ/Mercury Basic Value Equity
o EQ/MFS Emerging Growth Companies
o EQ/MFS Investors Trust
o EQ/MFS Research
o EQ/Putnam Growth & Income Value
o EQ/Putnam Voyager
o EQ/Small Company Index
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BALANCED/HYBRID
- --------------------------------------------------------------------------------
o EQ/Alliance Growth Investors o EQ/Balanced
- --------------------------------------------------------------------------------
B
- --------------------------------------------------------------------------------
FIXED INCOME
- --------------------------------------------------------------------------------
o AXA Premier VIP Core Bond o EQ/Alliance Quality Bond
o EQ/Alliance Intermediate Government o EQ/High Yield
Securities o EQ/J.P. Morgan Core Bond
o EQ/Alliance Money Market
- --------------------------------------------------------------------------------
FIXED MATURITY OPTIONS
- --------------------------------------------------------------------------------
The fixed maturity options are only available in all states where approved.
Transfer restrictions apply as indicated above under "Fixed maturity options
and maturity dates."
- --------------------------------------------------------------------------------
28 Contract features and benefits
Please note that under Trusteed contracts your employer or the plan trustee
will select the investment options available to the participant. Under all
other contracts, you may choose from any of the investment options available
under your investment method. In all cases, if any of the options listed in B
in the chart referenced earlier in this Prospectus is selected, you will be
subject to the restrictions on transfers out of the guaranteed interest option
that apply under the maximum investment options choice investment method.
- --------------------------------------------------------------------------------
A participant is an individual who participates in an employer's plan funded by
an EQUI-VEST(R) contract. The participant is also the annuitant who is the
measuring life for determining annuity benefits.
- --------------------------------------------------------------------------------
ERISA CONSIDERATIONS FOR EMPLOYERS
If you are an employer and your plan is intended to comply with the
requirements of the Employee Retirement Income Security Act of 1974 ("ERISA")
Section 404(c), you or your plan trustee must make sure that the investment
options chosen for your plan constitute a broad range of investment choices as
required by the Department of Labor's ("DOL") regulation under ERISA Section
404(c). See "Tax information" later in this Prospectus.
See Appendix II at the end of this Prospectus for information regarding
investment choices available under original contracts.
ALLOCATING YOUR CONTRIBUTIONS
Once you have made your investment method choice, you may allocate your
contributions to one or more or all of the investment options that you have
chosen, subject to any restrictions under the investment method you chose.
However, you may not allocate more than one contribution to any one fixed
maturity option. If the annuitant is age 76 or older, you may only allocate
contributions to fixed maturity options with maturities of five years or less.
Allocations must be in whole percentages and you may change your allocation
percentages at any time. However, the total of your allocations must equal
100%. Once your contributions are allocated to the investment options, they
become a part of your account value. We discuss account value in "Determining
your contract's value" later in this Prospectus. After your contract is issued,
you may request that we add or eliminate any variable investment options that
result in transfer restrictions. We reserve the right to deny your request. See
"Transferring your money among investment options" later in this Prospectus.
YOUR RIGHT TO CANCEL WITHIN A CERTAIN NUMBER
OF DAYS
If for any reason you are not satisfied with your contract, you may return it
to us for a refund. To exercise this cancellation right you must mail the
contract directly to our processing office within 10 days after you receive it.
In some states, this "free look" period may be longer.
For contributions allocated to the variable investment options, your refund
will equal your contributions, reflecting any investment gain or loss that also
reflects the daily charges we deduct. For contributions allocated to the
guaranteed interest option, your refund will equal the amount of the
contributions but will not include interest. For contributions allocated to the
fixed maturity options, your refund will equal the amount of contribution
allocated to fixed maturity options reflecting any positive or negative market
value adjustments. Some states require that we refund the full amount of your
contribution (not including any investment gain or loss, or interest or market
value adjustment). For contracts issued to fund SEPs, SARSEPs or SIMPLE IRAs
that are returned to us within seven days after you receive it, we are required
to refund the full amount of your contribution.
We may require that you wait six months before you apply for a contract with us
again if:
o you cancel your contract during the free look period; or
o you change your mind before you receive your contract whether we have
received your contribution or not.
Please see "Tax information" later in this Prospectus for possible consequences
of cancelling your contract.
Contract features and benefits 29
2. Determining your contract's value
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YOUR ACCOUNT VALUE AND CASH VALUE
Your "account value" is the total of the: (i) values you have allocated to the
variable investment options; (ii) the guaranteed interest option; (iii) the
market adjusted amounts you have in the fixed maturity options; and (iv) if you
have taken a loan under a TSA or Corporate Trusteed contract, amounts held in
your loan reserve account. These amounts are subject to certain fees and
charges discussed in "Charges and expenses" later in this Prospectus.
Your contract also has a "cash value." At any time before annuity payments
begin, your contract's cash value is equal to the account value, less: (i) any
applicable withdrawal charges and (ii) the total amount or a pro rata portion
of the annual administrative charge, and under a TSA or Corporate Trusteed
contract, less any outstanding loan plus accrued interest.
YOUR CONTRACT'S VALUE IN THE VARIABLE INVESTMENT OPTIONS
Each variable investment option invests in shares of a corresponding portfolio.
Your value in each variable investment option is measured by "units." The value
of your units will increase or decrease as though you had invested it in the
corresponding portfolio's shares directly. Your value, however, will be reduced
by the amount of the fees and charges that we deduct under the contract.
- --------------------------------------------------------------------------------
Units measure your value in each variable investment option.
- --------------------------------------------------------------------------------
The unit value for each variable investment option depends on the investment
performance of that option minus daily charges for mortality and expense risks
and other expenses. On any day, your value in any variable investment option
equals the number of units credited to that option, adjusted for any units
deducted from your contract under that option, multiplied by that day's value
for one unit. The number of your contract units in any variable investment
option does not change unless they are: (i) increased to reflect additional
contributions; (ii) decreased to reflect a withdrawal (plus applicable
withdrawal charges); (iii) increased to reflect a transfer into, or decreased
to reflect a transfer out of a variable investment option; or (iv) decreased to
reflect a transfer of your loan amount to the loan reserve account (if loans
are permitted under your contract).
In addition, the annual administrative charge or third-party transfer or
exchange charge, will reduce the number of units credited to your contract. A
description of how unit values are calculated is found in the SAI.
YOUR CONTRACT'S VALUE IN THE GUARANTEED INTEREST OPTION
Your value in the guaranteed interest option at any time will equal: your
contributions and transfers to that option, plus interest, minus withdrawals
and transfers out of the option, and charges we deduct.
YOUR CONTRACT'S VALUE IN THE FIXED MATURITY OPTIONS
Your value in each fixed maturity option at any time before the maturity date
is the market adjusted amount in each option. This is equivalent to your fixed
maturity amount increased or decreased by the market value adjustment. Your
value, therefore, may be higher or lower than your contributions (less
withdrawals) accumulated at the rate to maturity. At the maturity date, your
value in the fixed maturity option will equal its maturity value.
30 Determining your contract's value
3. Transferring your money among investment options
- --------------------------------------------------------------------------------
TRANSFERRING YOUR ACCOUNT VALUE
At any time before the date annuity payments are to begin, you can transfer
some or all of your account value among the investment options, subject to the
following:
o You must transfer at least $300 of account value or, if less, the entire
amount in the investment option. We may waive the $300 requirement.
o You may not transfer to a fixed maturity option in which you already have
value.
o If the annuitant is age 76 or older, you must limit your transfers to fixed
maturity options with maturities of five years or less.
o You may not transfer to a fixed maturity option if its maturity date is later
than the date annuity payments are to begin.
o If you make transfers out of a fixed maturity option other than at its
maturity date the transfer may cause a market value adjustment.
o If you choose the maximum investment options choice method for selecting
investment options, the maximum amount you may transfer in any contract
year from the guaranteed interest option to any other investment option is
(a) 25% of the amount you had in the guaranteed interest option on the
last day of the prior contract year or, if greater, (b) the total of all
amounts you transferred from the guaranteed interest option to any other
investment option in the prior contract year.
o If you transfer money from another financial institution into the guaranteed
interest option during your first contract year, and if you have selected
the maximum investment options choice, you may, during the balance of that
contract year, transfer up to 25% of such initial guaranteed interest
option balance to any other investment option.
See Appendix II at the end of this Prospectus for transfer restrictions under
original contracts.
Subject to the terms of your contract, upon advance notice we may change or
establish additional restrictions on transfers among the investment options. A
transfer request does not change your percentages for allocating current or
future contributions among the investment options.
You may request a transfer in writing or by telephone using TOPS or online
using EQAccess. You must send all signed written requests directly to our
processing office. Transfer requests should specify:
(1) the contract number,
(2) the dollar amounts to be transferred, and
(3) the investment options to and from which you are transferring.
Under Trusteed and EDC contracts, you or the trustee or employer owner,
whichever applies, can direct us to transfer among the investment options.
We will confirm all transfers in writing.
DISRUPTIVE TRANSFER ACTIVITY
You should note that the EQUI-VEST(R) contract is not designed for professional
"market timing" organizations, or other organizations or individuals engaging
in a market timing strategy, making programmed transfers, frequent transfers or
transfers that are large in relation to the total assets of the underlying
portfolio. These kind of strategies and transfer activities are disruptive to
the underlying portfolios in which the variable investment options invest. If
we determine that your transfer patterns among the variable investment options
are disruptive to the underlying portfolios, we may, among other things
restrict the availability of personal telephone requests, facsimile
transmissions, automated telephone services, Internet services or any
electronic transfer services. We may also refuse to act on transfer
instructions of an agent who is acting on behalf of one or more owners.
We currently consider transfers into and out of (or vice versa) the same
variable investment option within a five business day period as potentially
disruptive transfer activity. In order to prevent disruptive activity, we
monitor the frequency of transfers, including the size of transfers in relation
to portfolio assets, in each underlying portfolio, and we take appropriate
action, which may include the actions described above to restrict availability
of voice, fax and automated transaction services, when we consider the activity
of owners to be disruptive. We currently provide a letter to owners who have
engaged in such activity of our intention to restrict such services. However,
we may not continue to provide such letters. We may also, in our sole
discretion and without further notice, change what we consider disruptive
transfer activity, as well as change our procedures to restrict this activity.
AUTOMATIC TRANSFER OPTIONS
INVESTMENT SIMPLIFIER
You may choose from two automatic options for transferring amounts from the
guaranteed interest option to the variable investment options. The transfer
options are the "fixed-dollar option" and the "interest sweep." You may select
one or the other, but not both.
FIXED-DOLLAR OPTION. Under this option you may elect to have a fixed-dollar
amount transferred out of the guaranteed interest option and into the variable
investment options of your choice on a monthly basis. You can specify the
number of monthly transfers or instruct us to continue to make monthly
transfers until all available amounts in the guaranteed interest option have
been transferred out.
See Appendix II at the end of this Prospectus for transfer restrictions under
original contracts.
In order to elect the fixed-dollar option, you must have a minimum of $5,000 in
the guaranteed interest option on the date we receive your election form at our
processing office. You also must elect to transfer
Transferring your money among investment options 31
at least $50 per month. The fixed-dollar option is subject to the guaranteed
interest option transfer limitation described above under "Transferring your
account value."
INTEREST SWEEP. Under the interest sweep, we will make transfers on a monthly
basis from amounts in the guaranteed interest option. The amount we will
transfer will be the interest credited to amounts you have in the guaranteed
interest option from the last business day of the prior month to the last
business day of the current month. You must have at least $7,500 in the
guaranteed interest option on the date we receive your election and on the last
business day of each month thereafter to participate in the interest sweep
option.
The fixed-dollar option and interest sweep feature are forms of dollar-cost
averaging. Dollar-cost averaging allows you to gradually allocate amounts to
the variable investment options by periodically transferring approximately the
same dollar amount to the variable investment options you select. This will
cause you to purchase more units if the unit's value is low and fewer units if
the unit's value is high. Therefore, you may get a lower average cost per unit
over the long term. This plan of investing, however, does not guarantee that
you will earn a profit or be protected against losses.
WHEN YOUR PARTICIPATION IN THE INVESTMENT SIMPLIFIER TRANSFER
OPTION WILL END. Your participation in the investment simplifier will end:
o Under the fixed-dollar option, when either the number of designated monthly
transfers have been completed or the amount you have available in the
guaranteed interest option has been transferred out.
o Under the interest sweep, when the amount you have in the guaranteed interest
option falls below $7,500 (determined on the last business day of the
month) for two months in a row.
o Under either option, on the date we receive at our processing office, your
written request to cancel automatic transfers, or on the date your
contract terminates.
REBALANCING YOUR ACCOUNT VALUE
We currently offer a rebalancing program that you can use to automatically
reallocate your account value among the variable investment options. You must
tell us:
(a) the percentage you want invested in each variable investment option (whole
percentages only), and
(b) how often you want the rebalancing to occur (quarterly, semiannually, or
annually).
While your rebalancing program is in effect, we will transfer amounts among
each variable investment option so that the percentage of your account value
that you specify is invested in each option at the end of each rebalancing
date. Your entire account value in the variable investment options must be
included in the rebalancing program.
- --------------------------------------------------------------------------------
Rebalancing does not assure a profit or protect against loss. You should
periodically review your allocation percentages as your needs change. You may
want to discuss the rebalancing program with your financial professional before
electing the program.
- --------------------------------------------------------------------------------
You may elect the rebalancing program at any time. To be eligible, you must
have at least $5,000 of account value in the variable investment options.
Rebalancing is not available for amounts you have allocated in the guaranteed
interest option or the fixed maturity option.
If you request a transfer while the rebalancing program is in effect, we will
process the transfer as requested. The rebalancing program will then remain in
effect unless you request in writing that it be cancelled.
You may change your allocation instructions or cancel the program at any time.
32 Transferring your money among investment options
4. Accessing your money
- --------------------------------------------------------------------------------
WITHDRAWING YOUR ACCOUNT VALUE
You have several ways to withdraw your account value before annuity payments
begin. The table below shows the methods available under each type of contract.
More information follows the table. For the tax consequences of taking
withdrawals, see "Tax information" later in this Prospectus.
METHOD OF WITHDRAWAL
- --------------------------------------------------------------
PARTIAL MINIMUM
CONTRACT WITHDRAWAL SYSTEMATIC DISTRIBUTION
- --------------------------------------------------------------
SEP/SARSEP yes yes yes
SIMPLE IRA yes yes yes
Trusteed (both
types) yes** no yes**
TSA yes* yes* yes
University TSA yes*** yes*** yes
EDC yes** no yes**
Annuitant-Owned
HR-10 yes** yes** yes
- --------------------------------------------------------------
* Only if the contract is not subject to withdrawal restrictions and there
are no outstanding loans.
** Requires Plan Administrator's approval. See "Tax information and ERISA
matters" later in this Prospectus.
*** May require Plan Administrator's approval.
PARTIAL WITHDRAWALS AND TERMINATIONS
Subject to the terms of the Plan, your contract, and any restrictions in
federal income tax rules, you may take partial withdrawals from your account
value or terminate your contract at any time while the annuitant is living and
before annuity payments begin. The minimum amount you may withdraw at any time
is $300. If your account value is less than $500 after a withdrawal, we may
terminate your contract and pay you its cash value.
Partial withdrawals, or payments of remaining account value in excess of the
10% free withdrawal amount, may be subject to a withdrawal charge.
SYSTEMATIC WITHDRAWALS
If you have at least $20,000 of account value in the variable investment
options and the guaranteed interest option, you may elect systematic
withdrawals. You may elect to have your systematic withdrawals made on a
monthly or quarterly basis. The minimum amount you may take for each withdrawal
is $250. We will make the withdrawal on any day of the month that you select as
long as it is not later than the 28th day of the month. If you do not select a
date, your withdrawals will be made on the first day of the month. A check for
the amount of the withdrawal will be mailed to you or, if you prefer, we will
electronically transfer the money to your checking account.
You may withdraw either the amount of interest earned in the guaranteed
interest option or a fixed-dollar amount from either the variable investment
options or the guaranteed interest option. If you elect the interest option, a
minimum of $20,000 must be maintained in the guaranteed interest option. If you
elect the fixed-dollar option, you do not have to maintain a minimum amount
If you choose to have a fixed dollar amount taken from the variable investment
options. You may elect to have the amount of the withdrawal subtracted from
your account value in one of three ways:
(1) pro rata from more than one variable investment option (without using up
your total value in those options); or
(2) pro rata from more than one variable investment option (until your value in
those options is used up); or
(3) you may specify a dollar amount from only one variable investment option.
You may elect systematic withdrawals under TSA contracts if:
o your plan or program permits it;
o the contract is not subject to withdrawal restrictions; and
o the contract does not have a loan outstanding.
You can cancel the systematic withdrawal option at any time.
Amounts withdrawn in excess of the 10% free withdrawal amount may be subject to
a withdrawal charge.
LIFETIME MINIMUM DISTRIBUTION WITHDRAWALS
(SEPs, SARSEPs, SIMPLE IRAs, TSAs, EDCs, and Annuitant-owned HR-10 contracts -
See "Tax information" later in this Prospectus)
We offer the minimum distribution withdrawal option to help you meet or exceed
lifetime required minimum distributions under federal income tax rules. You may
elect this option in the year in which you reach age 70-1/2 and have account
value in the variable investment options and the guaranteed interest option of
at least $2,000. The minimum amount we will pay out is $300, or if less, your
account value. If your account value is less than $500 after the withdrawal, we
may terminate your contract and pay you its cash value. You may elect the
method you want us to use to calculate your minimum distribution withdrawal
from the choices we offer. Currently, minimum distribution withdrawal payments
will be made annually. See the "Required minimum distributions" section in "Tax
information" later in this Prospectus for your specific type of retirement
arrangement.
Currently, we do not impose a withdrawal charge on minimum distribution
withdrawals that are calculated based on the proposed revisions to the minimum
distribution rules and your EQUI-VEST(R) contract account value. (See "Required
minimum distributions" in "Tax information" later in this Prospectus.) The
minimum distribution withdrawal will be taken into account in determining if
any subsequent withdrawal taken in the same contract year exceeds the 10% free
Accessing your money 33
withdrawal amount. We will calculate your payment each year based on your
account value at the end of each prior calendar year, based on the method you
choose.
For non-governmental EDC contracts, this election may not be revoked. For TSA
Contracts, you may not elect the minimum distribution option if you have an
outstanding loan under a contract.
- --------------------------------------------------------------------------------
For contracts subject to minimum distribution requirements, we will send a form
outlining the distribution options available in the year you reach age 70-1/2
(if you have not begun your annuity payments before that time).
- --------------------------------------------------------------------------------
If you have an EQUI-VEST(R) TSA that was purchased before December 31, 1986 or
a TSA purchased from another insurance company before December 31, 1986 and
subsequently transferred to an EQUI-VEST(R) TSA, the amount of your pre-1987
account balance is not subject to the minimum distribution rules at age 70-1/2
but postponed to age 75. However, post-1986 salary reduction contributions and
all earnings since that date are subject to minimum distribution requirements
of Section 401(a)(9) of the Internal Revenue Code.
Distributions from a qualified plan, including our prototype plans through
which Annuitant-Owned HR-10 contracts are issued, are subject to the provisions
of the plan document.
HOW WITHDRAWALS ARE TAKEN FROM YOUR ACCOUNT VALUE
Unless you specify otherwise, we will subtract your withdrawals on a pro rata
basis from your values in the variable investment options and the guaranteed
interest option. If there is insufficient value or no value in the variable
investment options and the guaranteed interest option, any additional amount of
the withdrawal required or the total amount of the withdrawal will be withdrawn
from the fixed maturity options in order of the earliest maturity date(s). A
market value adjustment may apply if withdrawals are taken from the fixed
maturity options.
AUTOMATIC DEPOSIT SERVICE
If you are receiving required minimum distribution payments from a TSA, SEP,
SARSEP or SIMPLE IRA contract you may use our automatic deposit service.
Under this service we will automatically deposit the required minimum
distribution payment from your TSA, SEP, SARSEP or SIMPLE IRA contract directly
into an existing EQUI-VEST(R) NQ or ROTH IRA or an existing EQUI-VEST(R)
Express NQ or ROTH IRA contract according to your allocation instructions.
LOANS UNDER TSA AND CORPORATE TRUSTEED CONTRACTS
You may borrow against your account value only under a TSA or Corporate
Trusteed contract. An employer's retirement plan may, however, contain
restrictions, and loans under TSA and Corporate Trusteed contracts may not be
available in all states. Also, ERISA rules apply to loans under Corporate
Trusteed contracts, and may apply under TSA contracts. Loans are not available
under University TSA contracts or under any TSA when the required minimum
distribution withdrawal option has been elected.
Before we make a loan, you must properly complete and sign a loan request form.
You should read the terms and conditions of the form carefully and consult with
a tax adviser before taking out a loan. In the case of certain Corporate
Trusteed and certain TSA contracts subject to ERISA, the written consent of
your spouse will be required to obtain a loan and the Plan Administrator needs
to sign the loan form. Please see the loan provisions stated in the contract
and the loan request form for more details.
We permit only one loan to be outstanding at any time. When you take a loan we
will transfer certain amounts to a loan reserve account.
A loan will not be treated as a taxable distribution unless:
o it exceeds limits of federal income tax rules; or
o interest and principal are not paid when due; or
o in some instances, service with the employer terminates.
Loans under TSA and Corporate Trusteed contracts are discussed further in "Tax
information" later in this Prospectus. The tax consequences of failure to repay
a loan when due are substantial.
TERMINATION
We may terminate your contract and pay you the account value if:
(1) your account value is less than $500 and you have not made contributions to
your contract for a period of three years; or
(2) you request a partial withdrawal that reduces your account value to an
amount less than $500; or
(3) you have not made any contributions within 120 days from your contract
date.
We will deduct the amount of any outstanding loan balance and any withdrawal
charge that applies to the loan balance from the account value when we
terminate your contract.
TEXAS ORP PARTICIPANTS
For participants in a Texas Optional Retirement Program, Texas law permits
withdrawals only after one of the following distributable events occur:
o turning age 70-1/2; or
o death; or
o retirement; or
o termination of employment in all Texas public institutions of higher
education.
To make a withdrawal, a properly completed written acknowledgment must be
received from the employer. If a distributable event occurs prior to your being
vested, any amounts provided by an employer's first-year matching contribution
will be refunded to the employer. We may change these provisions without your
consent, but only to the extent necessary to maintain compliance with any law
that applies.
WHEN TO EXPECT PAYMENTS
Generally, we will fulfill requests for payments out of the variable investment
options within seven calendar days after the date of the
34 Accessing your money
transaction to which the request relates. These transactions may include
applying proceeds to a variable annuity payout option, payment of a death
benefit, payment of any amount you withdraw (less any withdrawal charge) and,
upon contract termination, payment of the cash value. We may postpone such
payments or applying proceeds for any period during which:
(1) the New York Stock Exchange is closed or restricts trading,
(2) sales of securities or determination of the fair value of a variable
investment option's assets is not reasonably practicable because of an
emergency, or
(3) the SEC, by order, permits us to defer payment to protect people remaining
in the variable investment options.
We can defer payment of any portion of your values in the guaranteed interest
option and the fixed maturity options (other than for death benefits) for up to
six months while you are living. We also may defer payments for a reasonable
amount of time (not to exceed 15 days) while we are waiting for a contribution
check to clear.
All payments are made by check and are mailed to you (or the payee named in a
tax-free exchange) by U.S. mail, unless you request that we use an express
delivery service at your expense.
YOUR ANNUITY PAYOUT OPTIONS
EQUI-VEST(R) offers you several choices of annuity payout options. Some enable
you to receive fixed annuity payments and others enable you to receive variable
annuity payments.
You can choose from among the different forms of annuity payout options listed
below. Restrictions may apply, depending on the type of contract you own or the
annuitant's age at contract issue.
ANNUITY PAYOUT OPTIONS
You can choose from among the following annuity payout options:
- ---------------------------------------------------------------
Fixed annuity payout options o Life annuity
o Life annuity with period
certain
o Life annuity with refund
certain
o Period certain annuity
Variable Immediate Annuity o Life annuity (not available
payout options in New York)
o Life annuity with period
certain
- ----------------------------------------------------------------
o Life annuity: An annuity that guarantees payments for the rest of the
annuitant's life. Payments end with the last monthly payment before the
annuitant's death. Because there is no continuation of benefits following
the annuitant's death with this payout option, it provides the highest
monthly payment of any of the life annuity options, so long as the
annuitant is living.
o Life annuity with period certain: An annuity that guarantees payments for the
rest of the annuitant's life. If the annuitant dies before the end of a
selected period of time ("period certain"), payments continue to the
beneficiary for the balance of the period certain. The period certain
cannot extend beyond the annuitant's life expectancy or the joint life
expectancy of you and your spouse, except for EDC plans in New York.
Generally, unless the annuitant elects otherwise with the written consent
of the spouse, this will be the form of annuity payment provided for
married annuitants under qualified plans and certain TSAs.
o Life annuity with refund certain: An annuity that guarantees payments for the
rest of the annuitant's life. If the annuitant dies before the amount
applied to purchase the annuity option has been recovered, payments to the
beneficiary will continue until that amount has been recovered. This
payout option is available only as a fixed annuity.
o Period certain annuity: An annuity that guarantees payments for a specific
period of time, usually 5, 10, 15, or 20 years. The guarantee period may
not exceed the annuitant's life expectancy. This option does not guarantee
payments for the rest of the annuitant's life. It does not permit any
repayment of the unpaid principal, so you cannot elect to receive part of
the payments as a single sum payment with the rest paid in monthly annuity
payments. Currently, this payout option is available only as a fixed
annuity. This is the normal form of annuity for annuitants in governmental
EDC plans in New York. Life annuity payout options are not available for
governmental EDC plans in New York.
The life annuity, life annuity with period certain, and life annuity with
refund certain payout options are available on a single life or joint and
survivor life basis. The joint and survivor life annuity guarantees payments
for the rest of the annuitant's life and, after the annuitant's death, payments
continue to the survivor. We may offer other payout options not outlined here.
Your financial professional can provide details.
FIXED ANNUITY PAYOUT OPTION
With fixed annuities, we guarantee fixed annuity payments that will be based
either on the tables of guaranteed annuity payments in your contract or on our
then current annuity rates, whichever is more favorable for you.
VARIABLE IMMEDIATE ANNUITY PAYOUT OPTIONS
Variable Immediate Annuities are described in a separate prospectus that is
available from your financial professional. Before you select a Variable
Immediate Annuity payout option, you should read the prospectus which contains
important information that you should know.
Variable annuities may be funded through your choice of variable investment
options investing in portfolios of EQ Advisors Trust. The contract also offers
a fixed annuity option that can be elected in combination with the variable
annuity payout options. The amount of each variable annuity payment will
fluctuate, depending upon the performance of the variable investment options,
and whether the actual rate of investment return is higher or lower than an
assumed base rate.
We may offer other payout options not outlined here. Your financial
professional can provide details.
Accessing your money 35
SELECTING AN ANNUITY PAYOUT OPTION
When you select a payout option, we will issue you a separate written agreement
confirming your right to receive annuity payments. We require you to return
your contract before annuity payments begin. Unless you choose a different
payout option, we will pay annuity payments under a life annuity with a period
certain of 10 years. You choose whether these payments will be either fixed or
variable. The contract owner and annuitant must meet the issue age and payment
requirements.
You can choose the date annuity payments are to begin. You can change the date
your annuity payments are to begin anytime before that date as long as you do
not choose a date later than the 28th day of any month. Also, that date may not
be later than the contract date anniversary that follows the annuitant's 90th
birthday. This may be different in some states.
Before your annuity payments are to begin, we will notify you by letter that
the annuity payout options are available. Once you have selected a payout
option and payments have begun, no change can be made, other than transfers (if
permitted in the future) among the variable investment options if a variable
annuity is selected.
The amount of the annuity payments will depend on:
(1) the amount applied to purchase the annuity;
(2) the type of annuity chosen, and whether it is fixed or variable. If you
choose a variable annuity, we use an assumed base rate of 5% to calculate
the level of payments. However, in states where that rate is not permitted
the assumed base rate will be 3-1/2%. We provide information about the
assumed base rate in the SAI;
(3) in the case of a life annuity, the annuitant's age (or the annuitant's and
joint annuitant's ages); and
(4) in certain instances, the sex of the annuitant(s).
In no event will you ever receive payments under a fixed option or an initial
payment under a variable option of less than the minimum amounts guaranteed by
the contract.
If, at the time you elect a payout option, the amount to be applied is less
than $2,000 or the initial payment under the form elected is less than $20
monthly, we reserve the right to pay the account value in a single sum rather
than as payments under the payout option chosen.
36 Accessing your money
5. Charges and expenses
- --------------------------------------------------------------------------------
CHARGES THAT EQUITABLE LIFE DEDUCTS
We deduct the following charges each day from the net assets of each variable
investment option. These charges are reflected in the unit values of each
variable investment option:
o A mortality and expense risk charge
o A charge for other expenses
We deduct the following charges from your account value. When we deduct these
charges from your variable investment options, we reduce the number of units
credited to your contract:
o On the last day of the contract year an annual administrative charge, if
applicable
o Charge for third-party transfer or exchange (for series 300 and 400 only)
o At the time you make certain withdrawals or surrender your contract, or your
contract is terminated -- a withdrawal charge
o At the time annuity payments are to begin -- charges designed to approximate
certain taxes that may be imposed on us, such as premium taxes in your
state. An annuity administrative fee may also apply
More information about these charges appears below. The charges differ
depending on which contract series you purchase.
We will not increase these charges for the life of your contract, except as
noted below. We may reduce certain charges under group or sponsored
arrangements. See "Group or sponsored arrangements" below.
To help with your retirement planning, we may offer other annuities with
different charges, benefits and features. Please contact your financial
professional for more information.
CHARGES UNDER THE CONTRACTS
MORTALITY AND EXPENSE RISKS CHARGE
We deduct a daily charge from the net assets in each variable investment option
to compensate us for mortality and expense risks, including the death benefit.
The daily charge is equivalent to an annual rate of the net assets in each
variable investment options as follows:
- --------------------------------------------------------------------------------
EQ/BALANCED, EQ/ALLIANCE ALL OTHER
COMMON STOCK, EQ/ALLIANCE VARIABLE INVESTMENT
MONEY MARKET OPTIONS OPTIONS
- --------------------------------------------------------------------------------
SERIES SERIES SERIES SERIES SERIES 300
100 200 100 200 AND 400
- --------------------------------------------------------------------------------
0.65% 1.15% 0.50% 1.09% 1.10%
- --------------------------------------------------------------------------------
The mortality risk we assume is the risk that annuitants as a group will live
for a longer time than our actuarial tables predict. If that happens, we would
be paying more in annuity benefits than we planned. We also assume a risk that
the mortality assumptions reflected in our guaranteed annuity payment tables,
shown in each contract, will differ from actual mortality experience. We may
change the actuarial basis for our guaranteed annuity payment tables, but only
for new contributions and only at five year intervals from the contract date.
Lastly, we assume a mortality risk to the extent that at the time of death, the
guaranteed death benefit exceeds the cash value of the contract. In addition,
we waive any withdrawal charge upon payment of a death benefit.
The expense risk we assume is the risk that it will cost us more to issue and
administer the contracts than we expect.
To the extent that the mortality and expense risk charges are not needed to
cover the actual expenses incurred, they may be considered an indirect
reimbursement for certain sales and promotional expenses relating to the
contracts.
CHARGE FOR OTHER EXPENSES
We deduct this daily charge from the net assets in each variable investment
option. This charge, together with the annual administrative charge described
below, is for providing administrative and financial accounting services under
the contracts. The daily charge is equivalent to a maximum annual rate of: (i)
0.84% of the net assets in each variable investment option. Under series 100
contracts, 0.60% of this charge is designed to reimburse us for research and
development costs and for administrative expenses that are not covered by the
annual administrative charge described below. The remaining 0.24% is to
reimburse us for the cost of financial accounting services we provide under the
contracts; (ii) under series 200 contracts, the charge for expenses and
financial accounting is 0.25% of the net assets in each variable investment
option; and (iii) under series 300 and 400 contracts, 0.25% of the net assets
in each variable investment option. Currently, the charge we deduct for
variable investment options other than the EQ/Alliance Money Market,
EQ/Alliance Common Stock, EQ/Aggressive Stock, and EQ/Balanced options is 0.24%
of the net assets. We may, upon advance notice to you, increase the charge to
0.25% of the net assets for these variable investment options.
MAXIMUM TOTAL CHARGES: Under series 100 and 200 contracts for the EQ/Alliance
Money Market, EQ/Balanced, EQ/Alliance Common Stock and EQ/Aggressive Stock
options, the combined amount of the Separate Account A charges to these
variable investment options and Trust charges for investment advisory fees and
direct operating expenses may not exceed a total annual rate of 1.75% of the
value of the assets held in each of those variable investment options.
Total Separate Account A annual expenses (not including the Trusts fees and
other expenses) are guaranteed not to exceed a total annual rate of: (i) 2.00%
for series 400; (ii) 1.35% for series 300 contracts; and (iii) 1.49% for series
100 and 200 contracts for the EQ/Balanced, EQ/Alliance Common Stock, and
Charges and expenses 37
EQ/Alliance Money Market options; and (iv) for series 100 and 200 contracts an
annual rate of 1.34% for all the other options except for those in (iii).
ANNUAL ADMINISTRATIVE CHARGE
We deduct an administrative charge from your account value on the last day of
each contract year. We will deduct a pro rata portion of the charge if you
surrender your contract, elect an annuity payout option, or the annuitant dies
during the contract year.
Under series 300 and 400 contracts, during the first two contract years the
charge is equal to $30 or, if less, 2% of your current account value. The
charge is $30 for contract years three and later. We may increase this charge
if our administrative costs rise, but the charge will never exceed $65
annually. We also may waive the administrative charge for contracts having an
account value of a specified amount on the last business day of each contract
year -- currently $20,000 for SEP, SARSEP, and SIMPLE IRA contracts. We reserve
the right to deduct this charge on a quarterly, rather than annual basis.
Under series 100 and 200 contracts, the charge is equal to $30 or, if less, 2%
of the current account value plus any amount previously withdrawn during that
contract year.
For SEP, SARSEP, SIMPLE IRA, Unincorporated Trusteed and Annuitant-Owned HR-10
contracts, if at the end of any contract year your account value is at least
$10,000, we will waive the annual administrative charge.
For TSA, University TSA, EDC and Corporate Trusteed contracts the annual
administrative charge is waived if the account value is at least $25,000 at the
end of the contract year.
The charge is deducted pro rata from the variable investment options and the
guaranteed interest option. If those amounts are insufficient, we will make up
the required amounts from the fixed maturity options to the extent you have
value in those options.
We currently waive the annual administrative charge that would otherwise be
deducted in the next contract year under any individually owned EQUI-VEST(R)
contract/certificate having an account value that, when combined with the
account value of other EQUI-VEST(R) contracts/certificates owned by the same
person, exceeds $100,000 in the aggregate (as determined in February of each
year). This does not apply to EQUI-VEST(R) contracts/certificates owned by
different members of the same household. We may change or discontinue this
practice at any time without prior notice.
CHARGE FOR THIRD-PARTY TRANSFER OR EXCHANGE
Under series 300 and 400 contracts, we impose a charge for making a direct
transfer of amounts from your contract to a third party, such as in the case of
a trustee-to-trustee transfer for an IRA contract, or if you request that your
contract be exchanged for a contract issued by another insurance company. In
either case, we will deduct from your account value any withdrawal charge that
applies and (except for series 300 contracts issued in Florida) a charge of $25
for each direct transfer or exchange. We reserve the right to increase this
charge to a maximum of $65.
WITHDRAWAL CHARGE
A withdrawal charge may apply in three circumstances: (1) you make one or more
withdrawals during a contract year; or (2) you surrender your contract; or (3)
we terminate your contract. The amount of the charge will depend on whether the
free withdrawal amount applies, and the availability of one or more exceptions.
In order to give you the exact dollar amount of the withdrawal you request, we
deduct the amount of the withdrawal and the amount of the withdrawal charge
from your account value. Any amount deducted to pay withdrawal charges is also
subject to a withdrawal charge.
We deduct the withdrawal amount and the withdrawal charge pro rata from the
variable investment options and from the guaranteed interest option. If those
amounts are insufficient, we will make up the required amounts from the fixed
maturity options with the earliest maturities first. If we deduct all or a
portion of the withdrawal charge from the fixed maturity options, a market
value adjustment may apply.
We may also reduce the withdrawal charge in order to comply with any state law
requirement. See "Contracts issued in New York -- fixed maturity options"
below.
WITHDRAWAL CHARGE FOR SERIES 300 AND 400 CONTRACTS
The amount of the withdrawal charge we deduct is equal to 6% of contributions
withdrawn that were made in the current and five prior contract years. In the
case of terminations, we will pay you the greater of (i) the account value
after any withdrawal charge has been imposed, or (ii) the free withdrawal
amount plus 94% of the remaining account value.
For purposes of calculating the withdrawal charge, amounts withdrawn up to the
free withdrawal amount are not considered a withdrawal of any contribution. We
also treat contributions that have been invested the longest as being withdrawn
first. We treat contributions as withdrawn before earnings for purposes of
calculating the withdrawal charge.
We reserve the right to change the amount of the withdrawal charge, but it will
not exceed 6% of the contributions withdrawn. Any change will not be unfairly
discriminatory.
The withdrawal charge does not apply in the circumstances described below.
10% FREE WITHDRAWAL AMOUNT. Each contract year you can withdraw up to 10% of
your account value without paying a withdrawal charge. The 10% free withdrawal
amount is determined using your account value at the time you request a
withdrawal, minus any other withdrawals made during the contract year.
DEATH OR PURCHASE OF ANNUITY. The withdrawal charge does not apply if:
o the annuitant dies and a death benefit is payable to the beneficiary.
o we receive a properly completed election form providing for the account value
to be used to buy a life contingent annuity payout option or a non-life
annuity with a period certain for a term of at least ten years.
38 Charges and expenses
DISABILITY, TERMINAL ILLNESS, OR CONFINEMENT TO NURSING HOME. The withdrawal
charge also does not apply if:
(i) the annuitant has qualified to receive Social Security disability benefits
as certified by the Social Security Administration; or
(ii) we receive proof satisfactory to us (including certification by a licensed
physician) that the annuitant's life expectancy is six months or less; or
(iii) the annuitant has been confined to a nursing home for more than 90 days
(or such other period, as required in your state) as verified by a
licensed physician. A nursing home for this purpose means one that is (a)
approved by Medicare as a provider of skilled nursing care service, or
(b) licensed as a skilled nursing home by the state or territory in which
it is located (it must be within the United States, Puerto Rico, U.S.
Virgin Islands, or Guam) and meets all of the following:
- its main function is to provide skilled, intermediate, or custodial
nursing care;
- it provides continuous room and board to three or more persons;
- it is supervised by a registered nurse or licensed practical nurse;
- it keeps daily medical records of each patient;
- it controls and records all medications dispensed; and
- its primary service is other than to provide housing for residents.
We reserve the right to impose a withdrawal charge, in accordance with your
contract and applicable state law, with respect to a contribution if the
condition as described in (i), (ii) or (iii) above existed at the time the
contribution was remitted, or if the condition began within the 12 month period
following remittance.
Some states may not permit us to waive the withdrawal charge in the above
circumstances, or may limit the circumstances for which the withdrawal charge
may be waived. Your financial professional can provide more information or you
may contact our processing office.
For SEP, SARSEP and SIMPLE IRA contracts the withdrawal charge also does not
apply:
o after six contract years and the annuitant is at least age 59-1/2; or
o if you request a refund of a contribution in excess of amounts allowed to be
contributed under the federal income tax rules within one month of the
date on which you made the contribution.
WITHDRAWAL CHARGE FOR SERIES 100 AND 200 CONTRACTS
For Trusteed and TSA contracts, no withdrawal charge will be applied during any
contract year in which the amount withdrawn is less than or equal to 10% of the
account value at the time the withdrawal is requested minus any amount
previously withdrawn during that contract year. This 10% portion is called the
free withdrawal amount. For EDC, SEP, SARSEP and SIMPLE IRA contracts, the free
withdrawal amount is available only after three contract years have been
completed or the annuitant has reached age 59-1/2.
FOR TRUSTEED CONTRACTS. The amount of the withdrawal charge we deduct is equal
to 6% of contributions withdrawn that were made in the current and five prior
contract years. In the case of terminations, we will pay you the greater of (i)
the account value after any withdrawal charge has been imposed, and after
deducting the amount of any loan balance and accrued interest, or (ii) the free
withdrawal amount plus 94% of the remaining account value. For series 200
contracts issued for annuitants age 60 or older on the contract date this
percentage will be 95% in the fifth contract year.
For purposes of calculating the withdrawal charge, amounts withdrawn up to the
free withdrawal amount are not considered a withdrawal of any contribution. We
also treat contributions that have been invested the longest as being withdrawn
first. We treat contributions as withdrawn before earnings for purposes of
calculating the withdrawal charge. See "Tax information" later in this
Prospectus.
The withdrawal charge does not apply in the circumstances described below.
For Trusteed contracts the withdrawal charge does not apply if:
o The annuitant dies and a death benefit is made available to the beneficiary.
o We receive a properly completed election form providing for the account value
to be used to buy a life annuity payout option.
o The contract owner has completed at least five contract years and the
annuitant has reached age 59-1/2.
o We receive a request for the refund of an excess contribution within one
month of the date the contribution is made.
o In addition, for Corporate Trusteed contracts, the withdrawal charge does not
apply if the annuitant has reached age 59-1/2 and has retired or employment
has been terminated, no matter how many contract years have been
completed.
FOR SEP, SARSEP, TSA, EDC AND ANNUITANT-OWNED HR-10 CONTRACTS.
The withdrawal charge equals a percentage of the amount withdrawn, and any TSA
defaulted loans. The percentage that applies depends on the contract year in
which the withdrawal is made, according to the following table:
- --------------------------------
CONTRACT YEAR(S) CHARGE
- --------------------------------
1 through 5 6%*
6 through 8 5
9 4
10 3
11 2
12 1
13 and later 0
- --------------------------------
* This percentage may be reduced at older ages for certain contract series.
Your financial professional can provide further details about the contract
series you own.
The total of all withdrawal charges assessed will not exceed 8% of all
contributions made during the current contract year and the nine contract years
before the withdrawal is made.
The withdrawal charge does not apply in the circumstances described below.
No withdrawal charge applies under SEP, SARSEP, TSA, EDC or Annuitant-Owned
HR-10 contracts if:
o after five contract years and the annuitant is at least age 59-1/2; or
Charges and expenses 39
o you request a refund of an excess contribution within one month of the date
on which the contribution is made; or
o the annuitant dies and the death benefit is made available to the
beneficiary; or
o after five contract years and the annuitant is at least age 55, and the
amount withdrawn is used to purchase from us a period certain annuity that
extends beyond the annuitant's age 59-1/2, and allows no prepayment; or
o after three contract years and the amount withdrawn is used to purchase from
us a period certain annuity for a term of at least 10 years, and allows no
prepayment; or
o the amount withdrawn is applied to the election of a life contingent annuity
payout option. (This form of payment is not available for annuitants in
governmental EDC Plans in New York); or
o the amount withdrawn is applied to the election of a period certain annuity
of at least 15 years, but not in excess of the annuitant's life
expectancy, that allows no prepayment. (This provision is available only
for annuitants in governmental EDC plans in New York.)
No withdrawal charge applies under a TSA contract if:
o the contract owner has completed at least five contract years, has reached
age 55 and has separated from service.
No withdrawal charge applies under a SEP contract funding SARSEP arrangements
if:
o the amount withdrawn is a distribution of deferrals disallowed (plus or minus
any gain or loss) by reason of the employer's failure to meet the Internal
Revenue Code's requirement that 50% of eligible employees elect SARSEP
within the plan year and the request for withdrawal is made by the April
15th of the calendar year following the calendar year in which you were
notified of such disallowance; or
o the amount withdrawn is an "excess contribution" (as such term is defined in
Section 408(k)(6)(C)(iii) of the Internal Revenue Code), plus or minus any
gain or loss, and the request for withdrawal is made by the April 15th of
the calendar year following the calendar year in which the excess
contributions were made; or
o the amount withdrawn is an "excess deferral" (as such term is defined in
Section 402(g)(2) of the Internal Revenue Code), plus or minus any gain or
loss, and the request for withdrawal is made by the April 15th of the
calendar year following the calendar year in which such excess deferrals
were made.
The tax consequences of withdrawals are discussed under "Tax information."
NY EDC PLANS. As a result of regulations which apply to EDC plans of government
employers in New York ("NY EDC plans"), EQUI-VEST(R) contracts funding NY EDC
plans contain special provisions that apply to all NY EDC plans whose
EQUI-VEST(R) funding arrangements became effective or were renewed on or after
July 1, 1989.
These provisions permit the automatic termination of all contracts issued in
connection with a NY EDC plan five years after the effective date (or any
renewal date) of its EQUI-VEST(R) funding arrangement without the deduction of
any contingent withdrawal charges. If agreed to by the employer or plan trustee
and us, the period may be shorter than five years. A decision to permit the
automatic termination of all contracts would result in the transfer of each
contract's account value to a successor funding vehicle designated by the
employer.
The employer sponsoring a NY EDC plan or plan trustee can renew the
EQUI-VEST(R) funding arrangement in a written notice to us which includes a
certification of compliance with procedures under the applicable regulations.
We are not responsible for the validity of any certification by the employer. A
written notice to transfer must be received by our processing office and
accepted by us not later than seven days before the date on which a transfer is
to occur. If an employer fails to notify us in writing as to a transfer of the
NY EDC arrangement, or as to its intention not to renew, we will continue the
arrangement and associated contracts will not be automatically terminated.
No further investment experience, whether positive, or negative, will be
credited under a NY EDC plan contract once the contract terminates. As with
other tax-favored retirement programs in which the funding is affected by
actions of a sponsoring employer, we are not required to provide annuitants
with information relating to an employer's decision to exercise any termination
right.
FOR ALL SERIES CONTRACTS ISSUED IN NEW YORK -- FIXED MATURITY OPTIONS
For contracts issued in New York, the withdrawal charge that applies to
withdrawals taken from amounts in the fixed maturity options will never exceed
6% and will be determined by applying the New York Declining Scale ("declining
scale"). If you withdraw amounts that have been transferred from one fixed
maturity option to another, we use the New York Alternative Scale ("alternative
scale") if it produces a higher charge than the declining scale.
- --------------------------------------------
ALTERNATIVE
DECLINING SCALE SCALE
- --------------------------------------------
YEAR OF INVESTMENT YEAR OF TRANSFER
IN FIXED WITHIN FIXED
MATURITY OPTION* MATURITY OPTION*
- --------------------------------------------
Within year 1 6% Within year 1 5%
2 6% 2 4%
3 5% 3 3%
4 4% 4 2%
5 3% 5 1%
6 2% After year 5 0%
After year 6 0% Not to exceed 1%
times the number of
years remaining in
the fixed maturity
option, rounded to
the higher number of
years. In other
words, if 4.3 years
remain, it would be
a 5% charge.
- ----------------------------------------------
* Measured from the contract date anniversary prior to the date of the
contribution or transfer.
In the following example we compare the withdrawal charge that would apply to a
withdrawal from a series 400 contract that has an account value of $10,000;
$8,000 from a contribution made three years ago and $2,000 from positive
investment performance.
o If you were to withdraw the total amount of the contribution within the first
six years after it was made the series 400 withdrawal charge that
generally applies would be $480 (6% of $8,000). However, if when you made
your contribution you allocated it to a fixed
40 Charges and expenses
maturity option, the withdrawal charge would be lower. According to the
declining scale method described above, the withdrawal charge would be
limited to 5% of the $8,000, or $400 in the third year.
o The withdrawal charge may be different if when you made your contribution
three years ago, you allocated it to a fixed maturity option and then in
the third year, you transfer the amounts that apply to such contribution
to a new fixed maturity option. In this example we assume that there is
one year remaining in the new fixed maturity option. Because you made a
transfer among the fixed maturity options, the alternative scale may now
apply. Based on this alternative scale, a contribution that is transferred
will be subject to a 5% withdrawal charge if you withdraw that
contribution in the same year that you make the transfer. However, the
withdrawal charge may not exceed 1% for each year remaining in the new
fixed maturity option. Since, in this example, the time remaining in the
new fixed maturity option is one year, the withdrawal charge under the
alternative scale would be limited to 1%. Because New York regulations
permit us to use the greater of the declining scale or the alternative
scale, the withdrawal charge would be 5%, or $400, based on the declining
scale.
o The withdrawal charge may not exceed the charge that would normally apply
under the contract. Use of a New York scale can only result in a lower
charge. If your contribution has been in the contract for more than six
years and therefore would not have a withdrawal charge associated with it,
no withdrawal charge would apply.
o If you take a withdrawal from an investment option other than the fixed
maturity options, the amount available for withdrawal without a withdrawal
charge is reduced. It will be reduced by the amount of the contribution in
the fixed maturity options to which no withdrawal charge applies.
o As of any date on which 50% or more of your account value is held in fixed
maturity options, the free withdrawal amount is zero.
For contracts issued in New York, you should consider that on the maturity date
of a fixed maturity option if we have not received your instructions for
allocation of your maturity value, we will transfer your maturity value to the
fixed maturity option scheduled to mature next. If we are not offering other
fixed maturity options, we will transfer your maturity value to the EQ/Alliance
Money Market option.
The potential for lower withdrawal charges for withdrawals from the fixed
maturity options and the potential for a lower free withdrawal amount than
those that would normally apply, should be taken into account when deciding
whether to allocate amounts to, or transfer amounts to or from, the fixed
maturity options.
FOR ALL CONTRACT SERIES
CHARGES FOR STATE PREMIUM AND OTHER APPLICABLE TAXES
We deduct a charge designed to approximate certain taxes that may be imposed on
us, such as premium taxes in your state. Generally, we deduct the charge from
the amount applied to provide an annuity payout option. The current tax charge
that might be imposed varies by state and ranges from 0% to 1%. The charge is
1% in Puerto Rico.
VARIABLE IMMEDIATE ANNUITY PAYOUT OPTION ADMINISTRATIVE FEE
We deduct a fee of up to $350 from the amount to be applied to the Variable
Immediate Annuity payout option.
CHARGES THAT THE TRUSTS DEDUCT
The Trusts deduct charges for the following types of fees and expenses:
o Investment advisory fees ranging from 0.25% to 1.20%.
o 12b-1 fees of 0.25% for Class IB/B shares.
o Operating expenses, such as trustees' fees, independent auditors' fees, legal
counsel fees, administrative service fees, custodian fees, and liability
insurance.
o Investment-related expenses, such as brokerage commissions.
These charges are reflected in the daily share price of each portfolio. Since
shares of each Trust are purchased at their net asset value, these fees and
expenses are, in effect, passed on to the variable investment options and are
reflected in their unit values. For more information about these charges,
please refer to the attached prospectuses for each Trust.
GROUP OR SPONSORED ARRANGEMENTS
For certain group or sponsored arrangements, we may reduce the withdrawal
charge or the mortality and expense risks charge, or change the minimum initial
contribution requirements. We also may change the minimum death benefit. Group
arrangements include those in which a trustee or an employer, for example,
purchases contracts covering a group of individuals on a group basis. Sponsored
arrangements include those in which an employer allows us to sell contracts to
its employees or retirees on an individual basis.
Our costs for sales, administration, and mortality generally vary with the size
and stability of the group or sponsoring organization, among other factors. We
take all these factors into account when reducing charges. To qualify for
reduced charges, a group or sponsored arrangement must meet certain
requirements, such as requirements for size and number of years in existence.
Group or sponsored arrangements that have been set up solely to buy contracts
or that have been in existence less than six months will not qualify for
reduced charges.
We also may establish different rates to maturity for the fixed maturity
options under different classes of contracts for group or sponsored
arrangements.
We will make these and any similar reductions according to our rules in effect
when we approve a contract for issue. We may change these rules from time to
time. Any variation will reflect differences in costs or services and will not
be unfairly discriminatory.
Group or sponsored arrangements may be governed by federal income tax rules,
ERISA, or both. We make no representations with regard to the impact of these
and other applicable laws on such programs. We recommend that employers,
trustees, and others purchasing or making contracts available for purchase
under such programs seek the advice of their own legal and benefits advisers.
Charges and expenses 41
OTHER DISTRIBUTION ARRANGEMENTS
We may reduce or eliminate charges when sales are made in a manner that results
in savings of sales and administrative expenses, such as sales through persons
who are compensated by clients for recommending investments and who receive no
commission or reduced commissions in connection with the sale of the contracts.
We will not permit a reduction or elimination of charges where it will be
unfairly discriminatory.
42 Charges and expenses
6. Payment of death benefit
- --------------------------------------------------------------------------------
YOUR BENEFICIARY AND PAYMENT OF BENEFIT
You designate your beneficiary when you apply for your contract. You may change
your beneficiary at any time. The change will be effective on the date the
written request for the change is received in our processing office. We are not
responsible for any beneficiary change request that we do not receive. We will
send you a written confirmation when we receive your request. Generally, the
owner must be the beneficiary under EDC plan contracts and the trustee must be
the beneficiary under most Trusteed contracts.
DEATH BENEFIT
Your contract provides a death benefit. The death benefit is equal to the
greater of (i) your account value (without adjustment for any otherwise
applicable negative market value adjustment) as of the date we receive
satisfactory proof of death, any required instructions, information and forms
necessary to effect payment or (ii) the "minimum death benefit." The minimum
death benefit is equal to your total contributions, less withdrawals and any
withdrawal charges, and any taxes that apply (and less any outstanding loan
balances plus accrued interest in the case of a TSA or Corporate Trusteed
contract).
If you have transferred the value of another annuity contract that we issue to
your EQUI-VEST(R) contract, the value of the other contract's minimum death
benefit calculated as of the time of the transfer will be included in the total
contributions for the purpose of calculating the minimum death benefit.
EFFECT OF THE ANNUITANT'S DEATH
If the annuitant dies before the annuity payments begin, we will pay the death
benefit to your beneficiary.
Generally, the death of the annuitant terminates the contract. However, if you
are the owner and annuitant and your spouse is the sole primary beneficiary the
contract can be continued as follows:
SUCCESSOR OWNER AND ANNUITANT (MAY NOT BE AVAILABLE FOR ALL SERIES AND MARKETS).
If you are the owner and annuitant and your spouse is the sole primary
beneficiary, your spouse may elect upon your death, to continue the contract as
the owner/annuitant and no death benefit is payable until the surviving spouse's
death. This election may not be approved in your state. If your surviving spouse
decides to continue the contract, as of the date we receive satisfactory proof
of death, any required instructions, information and forms necessary to effect
the successor owner/annuitant feature, we will increase the account value to
equal your minimum death benefit, if such death benefit is greater than such
account value. The increase in the account value will be allocated to the
investment options according to the allocation percentages we have on file for
your contract. Thereafter, for series 300 withdrawal charges will no longer
apply to contributions made before your death. Withdrawal charges will apply if
additional contributions are made. These additional contributions will be
withdrawn only after all other amounts have been withdrawn. For series 100
SEP/SARSEP/SIMPLE IRA contracts, withdrawal charges will no longer apply and
additional contributions may no longer be made.
HOW DEATH BENEFIT PAYMENT IS MADE
We will pay the death benefit to the beneficiary in the form of the annuity
payout option you have chosen. If you have not chosen an annuity payout option
as of the time of the annuitant's death, the beneficiary will receive the death
benefit in a single sum. However, subject to any exceptions in the contract,
our rules and applicable federal income tax rules, the beneficiary may elect to
apply the death benefit to one or more annuity payout options we offer at the
time. See "Your annuity payout options" under "Accessing your money" earlier in
this Prospectus. Please note that if you are both the contract owner and the
annuitant, you may elect only a life annuity or an annuity that does not extend
beyond the life expectancy of the beneficiary.
Single sum payments generally are paid through the Equitable Life Access
Account(TM), an interest bearing account with check writing privileges. The
Equitable Life Access Account(TM) is part of Equitable Life's general account.
Beneficiaries have immediate access to the proceeds by writing a check on the
account. We pay interest from the date the single sum is deposited into the
Access Account until the account is closed.
BENEFICIARY CONTINUATION OPTION (FOR TSAS ONLY)
Beneficiary continuation option ("BCO") may not be available in your state.
Check with your financial professional or our processing office regarding
availability in your state.
Upon your death under a TSA contract, your beneficiary may generally elect to
keep the TSA contract in your name and receive distributions under the contract
instead of receiving the death benefit in a single sum. In order to elect this
option, the beneficiary must be an individual. Certain trusts with only
individual beneficiaries will be treated as individuals. The minimum amount
that is required in order to elect the beneficiary continuation option is
$5,000 for each beneficiary. We require this election to be made within 9
months following the date we receive proof of your death and before any other
inconsistent election is made. We will not process any beneficiary continuation
option election for which we have not received the election by December 15th of
the calendar year following your death. Beneficiaries who do not make a timely
election will not be eligible for the beneficiary continuation option.
As of the date we receive satisfactory proof of death, any required
instructions, information and forms necessary to effect the BCO feature, we
will increase the account value to equal the minimum death benefit if such
death benefit is greater than such account value.
Under the beneficiary continuation option:
o The contract continues in your name for the benefit of your beneficiary.
o The beneficiary may make transfers among the investment options, but no
additional contributions will be permitted.
o Any death benefit provision (including the minimum death benefit provision)
will no longer be in effect.
o The beneficiary may choose at any time to withdraw all or a portion of the
account value and no withdrawal charges will apply. Any partial withdrawal
must be at least $300.
o Upon the death of the beneficiary, the beneficiary named by the original
beneficiary has the option to either continue taking minimum distributions
based on the remaining life expectancy of the deceased beneficiary or to
receive any remaining interest in the contract in a lump sum. The option
elected will be processed (unless
Payment of death benefit 43
that beneficiary elects to continue the payment method that was elected by
the original beneficiary) when we receive satisfactory proof of death, any
required instructions for the method of payment and any required
information and forms necessary to effect payment.
Generally, payments will be made once a year to the beneficiary over the
beneficiary's life expectancy (determined in the calendar year after your
death, and determined on a term certain basis). These payments must begin no
later than December 31st of the calendar year after the year of your death.
However, if you die before your Required Beginning Date for Required Minimum
Distributions as discussed in "Tax Information" your beneficiary may choose the
"5-year rule" instead of annual payments over life expectancy. If your
beneficiary chooses this, your beneficiary may take withdrawals as desired, but
the entire account value must be fully withdrawn by December 31st of the 5th
calendar year after your death.
44 Payment of death benefit
7. Tax information
- --------------------------------------------------------------------------------
TAX INFORMATION AND ERISA MATTERS
President Bush signed the Economic Growth and Tax Relief Reconciliation Act of
2001 ("EGTRRA") on June 7, 2001. Many of the provisions of EGTRRA became
effective on January 1, 2002 and are phased in during the first decade of the
twenty-first century. In the absence of future legislation, all of the
amendments made by EGTRRA will no longer apply after December 31, 2010, and the
law in effect in 2001 will apply again. In general, EGTRRA liberalizes
contributions that can be made to all types of tax-favored retirement plans. In
addition to increasing amounts that can be contributed and permitting
individuals over age 50 to make additional contributions, EGTRRA also permits
rollover contributions to be made between different types of tax-favored
retirement plans. Please discuss with your tax advisor how EGTRRA affects your
personal financial situation.
BUYING A CONTRACT TO FUND A RETIREMENT ARRANGEMENT
Generally, there are two types of funding vehicles that are available for Code
Section 403(b) Arrangements ("TSAs"): a 403(b) annuity contract such as this
one or a 403(b)(7) custodial account. Similarly a SEP IRA, SARSEP IRA or SIMPLE
IRA can be purchased in annuity or custodial account form. An EDC plan may be
funded by specified annuity contracts, custodial accounts or trustee
arrangements. Annuity contracts can also be purchased in connection with
employer plans qualified under Code section 401 ("QP contracts"). How these
arrangements work, including special rules applicable to each, are described in
the specific sections for each type of arrangement, below. You should be aware
that the funding vehicle for a qualified arrangement does not provide any tax
deferral benefit beyond that already provided by the Code for all permissible
funding vehicles. Before choosing an annuity contract, therefore, you should
consider the annuity's features and benefits, such as EQUI-VEST(R)'s guaranteed
minimum death benefit, selection of variable investment options, provision of a
guaranteed interest option and fixed maturity options and choices of pay-out
options, as well as the features and benefits of other permissible funding
vehicles and the relative costs of annuities and other such arrangements. You
should be aware that cost may vary depending on the features and benefits made
available and the charges and expenses of the portfolios.
SPECIAL RULES FOR TAX-FAVORED RETIREMENT PROGRAMS
Employer-sponsored retirement plans can use annuity contracts to fund the plan
unless the plan specifically prohibits annuity contracts as a funding vehicle.
Federal income tax rules prescribe how a retirement plan qualifies for
tax-favored status and set requirements for plan features, including:
o participation and coverage;
o nondiscrimination;
o vesting and funding;
o limits on contributions, distributions, and benefits;
o withholding;
o reporting and disclosure; and
o penalties.
- --------------------------------------------------------------------------------
State income tax rules covering contributions to and distributions from
employer-sponsored retirement programs may differ from federal income tax
rules.
- --------------------------------------------------------------------------------
ADDITIONAL "SAVER'S CREDIT" FOR SALARY REDUCTION CONTRIBUTIONS TO CERTAIN PLANS
OR A TRADITIONAL IRA OR ROTH IRA
Beginning in 2002, you may be eligible for a nonrefundable income tax credit
for salary reduction contributions you make to a 401(k) plan, 403(b) TSA,
governmental 457(b) plan, SIMPLE IRA, or SARSEP IRA, as well as contributions
you make to a traditional IRA or Roth IRA. If you qualify, you may take this
credit even though your salary reduction contribution is already excluded from
tax or your traditional IRA contribution is already fully or partially
deductible. To take advantage of this "saver's credit" you must be age 18 or
over before the end of 2002. You cannot be a full-time student or claimed as a
dependent on another's tax return, and your adjusted gross income cannot exceed
$50,000. The amount of the tax credit you can get varies from 10% of your
contribution to 50% of your contribution, and depends on your income tax filing
status and your adjusted gross income. The maximum annual contribution eligible
for the saver's credit is $2,000. If you and your spouse file a joint return,
and each of you qualifies, each is eligible for a maximum annual contribution
of $2,000. Your saver's credit may also be reduced if you take or have taken a
taxable distribution from any plan eligible for a saver's credit contribution
- -- even if you make a contribution to one plan and take the distribution from
another plan -- during the "testing period." The "testing period" begins two
years before the year for which you make the contribution and ends when your
tax return is due for the year for which you make contribution.
Saver's-credit-eligible contributions may be made to a 401(k) plan, 403(b) TSA,
governmental 457(b) plan, SIMPLE IRA, or SARSEP IRA, as well as to a
traditional IRA or Roth IRA.
QUALIFIED PLANS
GENERAL; CONTRIBUTIONS
Any type of employer -- corporation, partnership, self-employed individual,
governmental entity, non-profit organization -- is eligible to establish a
qualified retirement plan under Section 401(a) of the Internal Revenue Code for
participating employees. Because there are numerous technical federal income
tax and Department of Labor "DOL" or "ERISA" rules covering establishment and
operation of a
Tax information 45
qualified plan, we do not cover them in this prospectus. We also do not cover
specific state law or other rules which may govern plans. Employers should
consult their tax advisors for information. It is the employer's responsibility
to figure out whether it is eligible to establish a plan, what kinds of plan it
may establish, and whether an annuity contract may be used as a funding
vehicle.
There are limits on employer and employee contributions to qualified plans.
Violation of contribution limits can result in plan disqualification and
penalties. The annual limits on contributions do not apply to rollover
contributions or trustee-to-trustee transfer contributions which may be
permitted under the plan.
The annual limit on contributions on behalf of an employee to all of the
defined contribution plans of an employer for plan years beginning after
December 31, 2001 is the lesser of $40,000 or 100% of compensation or earned
income. This amount may be further adjusted for cost of living changes in
future years. When figuring out the contribution limit you have to:
o include reallocated forfeitures and voluntary nondeductible employee
contributions;
o include compensation from the employer in the form of elective deferrals and
excludible contributions under Code Section 457 or "EDC" plans and
"cafeteria" plans. These are plans giving employees a choice between cash
and deferred benefits or specified excludible health and welfare benefits;
and
o disregard compensation or earned income of more than a specified amount. For
2002, this amount is $200,000. This amount may be further adjusted for
cost of living changes in future years.
"Salary reduction" or "elective deferral" contributions made under a 401(k)
plan or other cash or deferred arrangement are limited to $11,000 for 2002.
This amount is scheduled to increase until the limits reach $15,000 for 2006,
and may be further adjusted for cost of living changes in future years. This
limit applies to the total of all elective deferrals under all tax-favored
plans in which the individual participates, from all employers, for example,
also including salary reduction contributions under TSAs. If the plan permits,
an individual who is at least age 50 at any time during 2002 can make up to
$1,000 additional salary reduction contributions for 2002.
Except for governmental plans that do not elect to be subject to ERISA,
qualified plans must not discriminate in favor of highly compensated employees.
Special "top heavy" rules apply to plans where more than 60% of the
contributions or benefits are allocated to defined highly compensated employees
known as "key employees." Plan administrators must test compliance with both
nondiscrimination and top heavy rules. 401(k) plans can adopt a "SIMPLE 401(k)"
feature which enables the plan to meet nondiscrimination requirements without
testing. The SIMPLE 401(k) feature requires the 401(k) plan to meet specified
contribution, vesting, and exclusive plan requirements, similar to those
discussed in this section of the prospectus under "SIMPLE IRAs."
TAX-SHELTERED ANNUITY ARRANGEMENTS (TSAS)
GENERAL; SPECIAL EMPLOYER RULES
An employer eligible to maintain a TSA plan (also referred to as a "403(b)"
plan, program, or arrangement) for its employees may make contributions to
purchase a 403(b) funding vehicle for the benefit of the employee. These
contributions, if properly made, will not be currently taxable compensation to
the employee. Moreover, the employee will not be taxed on the earnings in the
403(b) funding vehicle until he/she takes distributions. Generally, there are
two types of funding vehicles available to fund 403(b) arrangements: an annuity
contract under Section 403(b)(1) of the Internal Revenue Code or a custodial
account that invests only in mutual funds and which is treated as an annuity
contract under section 403(b)(7) of the Code. Both types of 403(b) arrangements
qualify for tax deferral.
Two different types of employers are eligible to maintain 403(b) plans: public
schools and specified tax-exempt organizations under Section 501(c)(3) of the
Code.
CONTRIBUTIONS TO TSAS
There are three ways you can make contributions to this EQUI-VEST(R) TSA
contract:
o annual contributions made through the employer's payroll; or
o a rollover from another eligible retirement plan; or
o a full or partial direct transfer of assets ("direct transfer") from another
contract or arrangement that meets the requirements of Section 403(b) of
the Internal Revenue Code by means of IRS Revenue Ruling 90-24.
ANNUAL CONTRIBUTIONS. Annual contributions to TSAs made through the employer's
payroll are limited. (Tax-free transfers from another 403(b) arrangement or
tax-deferred rollover contributions from another eligible retirement plan are
not subject to these annual contribution limits.) Commonly, some or all of the
contributions made to the TSA are made under a salary reduction agreement
between the employee and the employer. These contributions are called "salary
reduction" or "elective deferral" contributions. However, a TSA can also be
wholly or partially funded through non-elective employer contributions or
contributions treated as after-tax employee contributions. The permissible
annual contribution to the participant's TSA is calculated the same way as
contributions to a 401(k) plan, beginning with plan years beginning after
December 31, 2001:
o The annual limit on employer and employee contributions to defined
contribution plans is the lesser of $40,000 or 100% of compensation for
2002.
o The annual limit on all salary reduction or elective deferral contributions
under all employer plans you participate in is generally limited to
$11,000 for 2002. The salary reduction limit is scheduled to increase by
$1,000 annually until the limits reach $15,000 in 2006. This limit may be
further adjusted for cost of living changes in future years.
Special provisions may allow certain participants with at least 15 years of
service to "catch-up" contributions to compensate for smaller contributions
made in previous years. In addition, if the plan permits, an individual who is
at least age 50 at any time during 2002 can make up to $1,000 additional salary
reduction contributions for 2002.
46 Tax information
Any excess deferral contributions which are not withdrawn by April 15th after
the year of the deferral may cause the contract to fail TSA rules.
ROLLOVER OR DIRECT TRANSFER CONTRIBUTIONS
Beginning in 2002, eligible rollover distributions from 403(b) plans, 401(a)
qualified plans, governmental EDC plans and traditional IRAs may be rolled over
into other such plans. Therefore, you may make rollover contributions to your
EQUI-VEST(R) TSA contract from these sources: qualified plans, governmental EDC
plans, other TSAs and 403(b) arrangements and traditional IRAs.
Generally, you may make a rollover contribution to a TSA when you have a
distributable event from an existing TSA, qualified plan, or governmental EDC
plan as a result of your:
o termination of employment with the employer who provided the plan funds; or
o reaching age 59-1/2 even if you are still employed; or
o disability (special federal income tax definition).
You can roll over pre-tax funds from your traditional IRA to your TSA at any
time.
ROLLOVERS OF AFTER-TAX CONTRIBUTIONS FROM CERTAIN ELIGIBLE
RETIREMENT PLANS
Beginning in 2002, any after-tax contributions you have made to a qualified
plan or TSA (but not a governmental 457(b) plan) may be directly rolled over to
another qualified plan or TSA which agrees to do required separate accounting.
This can only be done in a direct rollover, not a rollover you do yourself.
Before you decide to roll over your payment to another employer plan, you
should check with the administrator of that plan about whether the plan accepts
rollovers and, if so, the types of distributions it accepts. You should also
check with the administrator of the receiving plan about any documents required
to be completed before it will accept a rollover.
DIRECT TRANSFERS
A transfer occurs when changing the funding vehicle, even if there is no
distributable event. Under a direct transfer, you do not receive a
distribution. We accept direct transfers of TSA funds under Revenue Ruling
90-24 only if:
o you give us acceptable written documentation as to the source of the funds,
and
o the EQUI-VEST(R) contract receiving the funds has provisions at least as
restrictive as the source contract.
Before you transfer funds to an EQUI-VEST(R) TSA contract, you may have to
obtain your employer's authorization or demonstrate that you do not need
employer authorization. For example, the transferring TSA may be subject to
Title I of ERISA, if the employer makes matching contributions to salary
reduction contributions made by employees. In that case, the employer must
continue to approve distributions from the plan or contract.
SPECIAL RULE FOR ROLLOVER OR DIRECT TRANSFER CONTRIBUTIONS AFTER
AGE 70-1/2
Any rollover or direct transfer contribution to an EQUI-VEST(R) TSA must be net
of the required minimum distribution for the tax year if:
o you are or will be at least age 70-1/2 in the current calendar year, and
o you have separated from service with the employer who provided the funds to
purchase the TSA you are transferring or rolling over to the EQUI-VEST(R)
TSA.
This rule applies regardless of whether the source of funds
is a:
o rollover by check of the proceeds from another TSA or other eligible
retirement plan; or
o direct rollover from another TSA or other eligible retirement plan; or
o direct transfer under Revenue Ruling 90-24 from another TSA.
DISTRIBUTIONS FROM QUALIFIED PLANS AND TSAS
GENERAL
Depending on the terms of the employer plan and your employment status, you may
have to get your employer's consent to take a loan or withdrawal.
WITHDRAWAL RESTRICTIONS. You may not be able to withdraw or take payment from
all or part of your TSA or 401(k) qualified plan unless you reach age 59-1/2,
die, become disabled (special federal income tax definition), sever employment
with the employer who provided the funds or suffer financial hardship. Hardship
withdrawals are limited to the amount of your salary reduction contributions
without earnings.
These restrictions do not apply to your account balance attributable to salary
reduction contributions to the TSA contract and earnings on December 31, 1988
or to your account balance attributable to employer contributions. To take
advantage of this grandfathering you must properly notify us in writing at our
processing office of your December 31, 1988 account balance if you have
qualifying amounts directly transferred to your EQUI-VEST(R) TSA contract from
another TSA in a Revenue Ruling 90-24 transfer.
TAX TREATMENT OF DISTRIBUTIONS FROM QUALIFIED PLANS AND TSAS.
Amounts held under qualified plans and TSAs are generally not subject to
federal income tax until benefits are distributed.
Distributions include withdrawals and annuity payments. Death benefits paid to
a beneficiary are also taxable distributions. Amounts distributed from
qualified plans and TSAs are includable in gross income as ordinary income, not
capital gain. (Under limited circumstances specified in federal income tax
rules, qualified plan participants, not TSA participants, are eligible for
capital gains or income averaging treatment on distributions.) Distributions
from qualified plans and TSAs may be subject to 20% federal income tax
withholding. See "Federal and state income tax withholding and information
reporting" below. In addition, qualified plan and TSA distributions may be
subject to additional tax penalties.
If you have made after-tax contributions, you will have a tax basis in your
qualified plan or TSA contract, which will be recovered tax-free.
Tax information 47
Unless we have been provided acceptable documentation for the amounts of any
after-tax contributions to your TSA or qualified plan contract, we assume that
all amounts distributed from your TSA or qualified plan contract are pre-tax,
and we withhold tax and report accordingly.
DISTRIBUTIONS BEFORE ANNUITY PAYMENTS BEGIN. On a total surrender, the amount
received in excess of the investment in the contract is taxable. We will report
the total amount of the distribution. The amount of any partial distribution
from a qualified plan or TSA prior to the annuity starting date is generally
taxable, except to the extent that the distribution is treated as a withdrawal
of after-tax contributions. Distributions are normally treated as pro rata
withdrawals of after-tax contributions and earnings on those contributions.
ANNUITY PAYMENTS. If you elect an annuity payout option, the nontaxable portion
of each payment is calculated by dividing your investment in the contract by an
expected return determined under an IRS table prescribed for qualified
annuities. The balance of each payment is fully taxable. The full amount of the
payments received after your investment in the contract is recovered is fully
taxable. If you (and your beneficiary under a joint and survivor annuity) die
before recovering the full investment in the contract, a deduction is allowed
on your (or your beneficiary's) final tax return.
PAYMENTS TO A BENEFICIARY AFTER YOUR DEATH
Death benefit distributions from a qualified plan or TSA generally receive the
same tax treatment as distributions during your lifetime. In some instances,
distributions from a qualified plan or TSA made to your surviving spouse may be
rolled over to a traditional IRA or other eligible retirement plan.
LOANS FROM QUALIFIED PLANS AND TSAS
If the plan permits, loans are available from a qualified plan or TSA plan.
Loans are subject to federal income tax limits and may also be subject to the
limits of the plan from which the funds came. Federal income tax rule
requirements apply even if the plan is not subject to ERISA.
Loans are generally not treated as a taxable distribution. If the amount of the
loan exceeds permissible limits under federal income tax rules when made, the
amount of the excess is treated (solely for tax purposes) as a taxable
distribution. Additionally, if the loan is not repaid at least quarterly,
amortizing (paying down) interest and principal, the amount not repaid when due
will be treated as a taxable distribution. Finally, unpaid loans may become
taxable when the individual separates from service. In addition, the 10% early
distribution penalty tax may apply.
Effective for loans made and defaulted on or after November 1, 2001, we will
report the entire unpaid balance of the loan as includable in income in the
year of the default. The amount of the unpaid loan balance is reported to the
IRS on Form 1099-R as a distribution.
o The amount of a loan to a participant, when combined with all other loans to
the participant from all qualified plans of the employer, cannot exceed
the lesser of (1) the greater of $10,000 or 50% of the participant's
nonforfeitable accrued benefits, (2) $50,000 reduced by the excess (if
any) of the highest outstanding loan balance over the previous twelve
months over the outstanding loan balance of plan loans on the date the
loan was made.
o In general, the term of the loan cannot exceed five years unless the loan is
used to acquire the participant's primary residence. EQUI-VEST(R) TSA
contracts have a term limit of 10 years for loans used to acquire the
participant's primary residence.
o All principal and interest must be amortized in substantially level payments
over the term of the loan, with payments being made at least quarterly.
TAX-DEFERRED ROLLOVERS AND DIRECT TRANSFERS
You may roll over any "eligible rollover distribution" from a qualified plan or
TSA into another eligible retirement plan which agrees to accept the rollover.
The rollover may be a direct rollover or a rollover you do yourself within 60
days after you receive the distribution. To the extent rolled over, it remains
tax-deferred.
You may roll over a distribution from a qualified plan or TSA to any of the
following: a qualified plan, a governmental EDC plan, a traditional IRA or a
TSA. A spousal beneficiary may also roll over death benefits to any of these.
The recipient plan must agree to take the distribution. If you are rolling over
from a qualified plan or TSA to a governmental EDC plan, the recipient
governmental EDC plan must agree to separately account for the rolled-over
funds.
The taxable portion of most distributions will be eligible for rollover.
However, federal income tax rules exclude certain distributions from rollover
treatment including (1) periodic payments for life or for a period of 10 years
or more, (2) hardship withdrawals, and (3) any required minimum distributions
under federal income tax rules.
Beginning in 2002, any after-tax contributions you have made to a qualified
plan or TSA only may be directly rolled over to another qualified plan or TSA
which agrees to do required separate accounting. This can only be done in a
direct rollover, not a rollover you do yourself. Also beginning in 2002, you
may roll over any after-tax contributions you have made to a qualified plan or
TSA to a traditional IRA (either in a direct rollover or a rollover you do
yourself). When the recipient plan is a traditional IRA, you are responsible
for recordkeeping and calculating the taxable amount of any distributions you
take from that traditional IRA. After-tax contributions may not be rolled into
a governmental EDC plan.
Before you decide to roll over your payment to another employer plan, you
should check with the administrator of that plan about whether the plan accepts
rollovers and, if so, the types of distributions it accepts. You should also
check with the administrator of the receiving plan about any documents required
to be completed before it will accept a rollover. You should discuss with your
tax advisor the rules which may apply to the rolled over funds. For example,
distributions from a governmental EDC plan are generally not subject to the
additional 10-percent federal income tax penalty for pre-age 59-1/2
distributions, which applies to other types of retirement plans. If you roll
over funds from an eligible retirement plan which is not a governmental EDC
plan (qualified plan, TSA or traditional IRA) into a
48 Tax information
governmental EDC plan, and you later take a distribution from the recipient
government EDC plan, those amounts generally remain subject to the penalty.
Direct transfers of TSA funds from one TSA to another under Revenue Ruling
90-24 are not distributions.
DISTRIBUTION REQUIREMENTS
Qualified plans and TSAs are subject to required minimum distribution rules.
See "Required minimum distributions" later in this Prospectus.
SPOUSAL CONSENT RULES
If ERISA rules apply to your qualified plan or TSA you will need to get spousal
consent for loans, withdrawals, or other distributions if you are married when
you request a withdrawal type transaction under the TSA contract. In addition,
unless you elect otherwise with the written consent of your spouse, the
retirement benefits payable under the plan must be paid in the form of a
qualified joint and survivor annuity. A qualified joint and survivor annuity is
payable for the life of the annuitant with a survivor annuity for the life of
the spouse in an amount not less than one-half of the amount payable to the
annuitant during his or her lifetime. In addition, if you are married, the
beneficiary must be your spouse, unless your spouse consents in writing to the
designation of another beneficiary.
If you are married and you die before annuity payments have begun, payments
will be made to your surviving spouse in the form of a life annuity unless at
the time of your death a contrary election was in effect. However, your
surviving spouse may elect, before payments begin, to receive payments in any
form permitted under the terms of the employer's plan and the contract.
EARLY DISTRIBUTION PENALTY TAX
A penalty tax of 10% of the taxable portion of a distribution applies to
distributions from a qualified plan or TSA before you reach age 59-1/2. This is
in addition to any income tax. There are exceptions to the extra penalty tax.
Some of the available exceptions to the pre-age 59-1/2 penalty tax include
distributions made:
o on or after your death; or
o because you are disabled (special federal income tax definition); or
o to pay for certain extraordinary medical expenses (special federal income tax
definition); or
o if you are separated from service, any form of payout after you are age 55;
or
o only if you are separated from service, a payout in the form of substantially
equal periodic payments made at least annually over your life (or your
life expectancy), or over the joint lives of you and your beneficiary (or
your joint life expectancy) using an IRS-approved distribution method.
SIMPLIFIED EMPLOYEE PENSIONS (SEPS)
An employer can establish a SEP plan for its employees and can make
contributions to a contract for each eligible employee. A SEP IRA contract is a
form of traditional IRA contract, owned by the employee-annuitant and most of
the rules which apply to traditional IRAs apply. See "Traditional Individual
Retirement Annuities (Traditional IRAs)" later in this Prospectus. A major
difference is the amount of permissible contributions. Rules similar to those
discussed above under "Qualified Plans -- General; Contributions" apply. In
2002 an employer can annually contribute an amount for an employee up to the
lesser of $40,000 or 25% of compensation. This amount may be further adjusted
for cost of living change in future years. In figuring out compensation you
exclude the employer's contribution to the SEP. Under our current practice,
regular traditional IRA contributions by the employee may not be made under a
SEP IRA contract and are put into a separate traditional IRA contract.
Salary reduction SEP (SARSEP) plans may no longer be established for years
beginning after December 31, 1996. However, employers who had established
SARSEP plans prior to 1997 can continue to make contributions on behalf of
participating employees for 1997 and later years. Please consult your tax
advisor.
SEP plans are available under EQUI-VEST(R) Series 300 in all states except OR,
WA and MD. EQUI-VEST(R) SEP Series 200 are available in WA and MD (Series 100
in Oregon).
SIMPLE IRAS (SAVINGS INCENTIVE MATCH PLAN)
An eligible employer may establish a "SIMPLE IRA" plan to make contributions to
special individual retirement accounts or individual retirement annuities for
its employees ("SIMPLE IRAs"). The IRS has issued various forms which may be
used by employers to set up a SIMPLE IRA plan. Currently, we are accepting only
those SIMPLE IRA plans using IRS Form 5304-SIMPLE. Use of Form 5304-SIMPLE
requires that the employer permit the employee to select a SIMPLE IRA provider.
The employer cannot maintain any other qualified plan, SEP plan or TSA
arrangement if it makes contributions under a SIMPLE IRA plan. (Eligible
employers may maintain EDC plans.)
Any type of employer -- corporation, partnership, self-employed person,
government or tax-exempt entity -- is eligible to establish a SIMPLE IRA plan
if it meets the requirements about number of employees and compensation of
those employees.
It is the responsibility of the employer to determine whether it is eligible to
establish a SIMPLE IRA plan and whether such plan is appropriate.
The employer must have no more than 100 employees who earned at least $5,000 in
compensation from the employer in the prior calendar year.
An employer establishing a SIMPLE IRA plan should consult its tax adviser
concerning the various technical rules applicable to establishing and
maintaining SIMPLE IRA plans. For example, the definition of employee's
"compensation" may vary depending on whether it is used in the context of
employer eligibility, employee participation, and employee or employer
contributions.
Participation must be open to all employees who received at least $5,000 in
compensation from the employer in any two preceding years
Tax information 49
(they do not have to be consecutive years) and who are reasonably expected to
receive at least $5,000 in compensation during the year. (Certain collective
bargaining unit and alien employees may be excluded.)
The only kinds of contributions which may be made to a SIMPLE IRA are (i)
contributions under a salary reduction agreement entered into between the
employer and the participating employee and (ii) required employer
contributions (employer matching contributions or employer nonelective
contributions). (Direct transfer and rollover contributions from other SIMPLE
IRAs, but not traditional IRAs or Roth IRAs, may also be made.) Salary
reduction contributions can be any percentage of compensation (or a specific
dollar amount, if the employer's plan permits) but are limited to $7,000 in
2002. This salary reduction limit is scheduled to increase by $1,000 annually
until the limits reach $10,000 in 2005. This limit may be further adjusted for
cost of living charges in future years.
If the plan permits, an individual at least age 50 at any time during 2002 can
make up to $500 additional salary reduction contributions for 2002.
Generally, the employer is required to make matching contributions on behalf of
each eligible employee in an amount equal to the salary reduction
contributions, up to 3% of the employee's compensation. In certain
circumstances, an employer may elect to make required employer contributions on
an alternate basis. Employer matching contributions to a SIMPLE IRA for
self-employed individuals are treated the same as matching contributions for
employees. (They are not subject to the elective deferral limits.)
TAX TREATMENT OF SIMPLE IRAS
Unless specifically otherwise mentioned, for example, regarding differences in
permissible contributions and potential penalty tax on distributions, the rules
which apply to traditional IRAs also apply to SIMPLE IRAs. See "Traditional
Individual Retirement Annuities (Traditional IRAs)" later in this prospectus.
Amounts contributed to SIMPLE IRAs are not currently taxable to employees. Only
the employer can deduct SIMPLE IRA contributions, not the employee. An employee
eligible to participate in a SIMPLE IRA is treated as an active participant in
an employer plan and thus may not be able to deduct (fully) regular
contributions to his/her own traditional IRA.
As with traditional IRAs in general, contributions and earnings accumulate tax
deferred until withdrawn and are then fully taxable. There are no withdrawal
restrictions applicable to SIMPLE IRAs. However, because of the level of
employer involvement, SIMPLE IRA plans are subject to ERISA. See the rules
under "ERISA Matters" below.
Amounts withdrawn from a SIMPLE IRA can always be rolled over to another SIMPLE
IRA and, within limits, to a traditional IRA or Roth IRA. No rollovers from a
SIMPLE IRA to a traditional IRA or a Roth IRA are permitted for individuals
under age 59-1/2 who have not participated in the employer's SIMPLE IRA plan for
two full years. Also, for such individuals, any amounts withdrawn from a SIMPLE
IRA are not only fully taxable but are also subject to a 25% (not 10%)
additional federal income tax penalty. (The exceptions for death, disability,
etc. apply.)
SIMPLE IRA plans are available under EQUI-VEST(R) Series 400 states where
approved.
PUBLIC AND TAX-EXEMPT ORGANIZATION EMPLOYEE DEFERRED COMPENSATION PLANS (EDC
PLANS)
SPECIAL EMPLOYER AND OWNERSHIP RULES. Employers eligible to maintain EDC plans
under Section 457(b) of the Code are governmental entities such as states,
municipalities, and state agencies (governmental employer) or tax-exempt
entities (tax-exempt employer). Participation in an EDC plan of a tax-exempt
employer is limited to a select group of management or highly compensated
employees because of ERISA rules that do not apply to governmental employer
plans.
The rules that apply to tax-exempt employer EDC plans and governmental employer
EDC plans may differ.
An employer can fund its EDC plan in whole or in part with annuity contracts
purchased for participating employees and their beneficiaries. These employees
do not have to include in income the employer's contributions to purchase the
EDC contracts or any earnings until they actually receive funds from a
governmental EDC plan. The participants of a tax-exempt EDC plan may have to
include in income the employer contributions and any earnings when they are
entitled to receive funds from the EDC plan. The EDC plan funds are subject to
the claims of the employer's general creditors in an EDC plan maintained by a
tax-exempt employer. In an EDC plan maintained by a governmental employer, the
plan's assets must be held in trust for the exclusive benefit of employees. An
annuity contract can be a trust equivalent if the contract includes the trust
rules. Regardless of contract ownership, the EDC plan may permit the employee
to choose among various investment options.
CONTRIBUTION LIMITS. For both governmental and tax-exempt employer EDC plans,
the maximum contribution for 2002 is the lesser of $11,000 or 100% of
includible compensation.
Special rules may permit "catch-up" contributions during the three years
preceding normal retirement age under the EDC plan. If the plan provides for
catch-up contributions for any of the 3 years of service preceding the plan
retirement age, the maximum contribution for 2002 for an individual eligible to
make such catch-up contributions is twice the otherwise applicable dollar
limit, or $22,000 for 2002.
For governmental EDC plans only, if the plan permits, an individual at least
age 50 at any time during 2002 may be able to make up to $1,000 additional
salary reduction contributions. An individual must coordinate this "age 50"
catch-up with the other "last 3 years of service" catch up.
GOVERNMENTAL EMPLOYER EDC PLANS -- ROLLOVER CONTRIBUTIONS.
Beginning in 2002, eligible rollover distributions from 403(b) plans (TSAs),
401(a) qualified plans, other governmental EDC plans and traditional IRAs may
be rolled over into other such plans. The recipient plan must agree to take the
distribution. If the source of the eligible rollover distribution is not a
governmental EDC plan, and the recipient plan is a governmental EDC plan, the
recipient governmental EDC plan must agree to separately account for the
rolled-over funds.
50 Tax information
Before you decide to roll over your payment to another employer plan, you
should check with the administrator of that plan about whether the plan accepts
rollovers and, if so, the types of distributions it accepts. You should also
check with the administrator of the receiving plan about any documents required
to be completed before it will accept a rollover.
You should discuss with your tax advisor whether you should consider rolling
over funds from one type of tax qualified retirement plan to another, because
the funds will generally be subject to the rules of the recipient plan. For
example, funds in a governmental 457(b) plan are not subject to the additional
10% federal income tax penalty for premature distributions, but they may become
subject to this penalty if you roll the funds to a non-governmental 457(b) plan
and subsequently take a premature distribution.
WITHDRAWAL LIMITS. In general, no amounts may be withdrawn from an EDC plan
prior to the calendar year in which the employee attains age 70-1/2, separates
from service with the employer or in the event of an unforeseen emergency.
Income or gains on contributions under an EDC plan are subject to federal
income tax when amounts are distributed (governmental EDC plan) or made
available (tax-exempt EDC plan) to the employee or beneficiary. Small amounts
(up to $5000) may be taken out by the employee or forced out by the plan under
certain circumstances, even though the employee may still be working and
amounts would not otherwise be made available.
DISTRIBUTION REQUIREMENTS. EDC plans are subject to minimum distribution rules
similar to those that apply to qualified plans. See "Required minimum
distributions" later in this Prospectus. That is, distributions from EDC plans
generally must start no later than April 1st of the calendar year following the
calendar year in which the employee attains age 70-1/2 or retires from service
with the employer maintaining the EDC plan, whichever is later. Failure to make
required distributions may cause the disqualification of the EDC plan.
Disqualification may result in current taxation of EDC plan benefits. In
addition, a 50% penalty tax is imposed on the difference between the required
distribution amount and the amount actually distributed, if any. It is the plan
administrator's responsibility to see that minimum distributions from an EDC
plan are made.
If the EDC plan provides, a deceased employee's beneficiary may be able to
elect to receive death benefits in installments instead of a lump sum, and the
payments will be taxed as they are received.
TAX TREATMENT OF DISTRIBUTIONS -- TAX-EXEMPT EMPLOYER EDC PLANS.
Distributions to a tax-exempt EDC plan participant are characterized as
"wages" for income tax reporting and withholding purposes. No election out of
withholding is possible. See "Federal and state income tax withholding and
information reporting" later in this Prospectus. Withholding on wages is the
employer's responsibility. Distributions from an EDC plan are not subject to
FICA tax, if FICA tax was withheld by the employer when wages were deferred.
Distributions from a tax-exempt EDC plan may not be rolled over to any other
eligible retirement plan.
TAX TREATMENT OF DISTRIBUTIONS -- GOVERNMENTAL EMPLOYER EDC PLANS. Beginning in
2002, the taxation of distributions from a governmental EDC plan is generally
the same as the tax treatment of distributions from qualified plans and TSAs
discussed earlier in this Prospectus. That is, amounts are generally not
subject to tax until actually distributed, and amounts may be subject to 20%
federal income tax withholding. See "Federal and State income tax withholding
and information reporting" later in this Prospectus. However, distributions
from a governmental EDC plan are generally not subject to the additional
10-percent federal income tax penalty for pre-age 59-1/2 distributions.
TAX-DEFERRED ROLLOVERS -- GOVERNMENTAL EMPLOYER EDC PLANS.
Beginning in 2002, a participant in a governmental EDC plan may be able to roll
over an eligible rollover distribution from the plan to a traditional IRA,
qualified plan or TSA, as well as to another governmental EDC plan. The
recipient plan must agree to take the distribution.
If you roll over funds from a governmental EDC plan into an eligible retirement
plan which is not a governmental EDC plan (qualified plan, TSA, or traditional
IRA), any subsequent distributions may be subject to the 10% federal income tax
penalty noted above. Before you decide to roll over your payment to another
employer plan, you should check with the administrator of that plan about
whether the plan accepts rollovers and, if so, the types of distributions it
accepts. You should also check with the administrator of the receiving plan
about any documents required to be completed before it will accept a rollover.
TRADITIONAL INDIVIDUAL RETIREMENT ANNUITIES (TRADITIONAL IRAS)
This part of the prospectus contains the information that the IRS requires you
to have before you purchase an IRA, and covers some of the special tax rules
that apply to IRAs.
GENERAL
"IRA" stands for individual retirement arrangement. There are two basic types
of such arrangements, individual retirement accounts and individual retirement
annuities. In an individual retirement account, a trustee or custodian holds
the assets funding the account for the benefit of the IRA owner. The assets
typically include mutual funds and/or individual stocks and securities in a
custodial account and bank certificates of deposit in a trusted account. In an
individual retirement annuity, an insurance company issues an annuity contract
that serves as the IRA.
There are two basic types of IRAs, as follows:
o traditional IRAs, typically funded on a pre-tax basis including SEP-IRAs and
SIMPLE-IRAs issued and funded in connection with employer-sponsored
retirement plans; and
o Roth IRAs, first available in 1998, funded on an after-tax basis. Roth IRAs
are not available under this prospectus and are not discussed here.
Regardless of the type of IRA, your ownership interest in the IRA cannot be
forfeited. You or your beneficiaries who survive you are the only ones who can
receive the IRA's benefits or payments. All types of IRAs qualify for tax
deferral regardless of the funding vehicle selected.
You can hold your IRA assets in as many different accounts and annuities as you
would like, as long as you meet the rules for setting up and making
contributions to IRAs.
Tax information 51
If you own multiple IRAs, including IRAs funded by or through your employer,
you may be required to combine IRA values or contributions for tax purposes.
For further information about individual retirement arrangements, you can read
Internal Revenue Service Publication 590 ("Individual Retirement Arrangements
(IRAs)"). This publication is usually updated annually, and can be obtained
from any IRS district office or the IRS Web site (www.irs.gov).
Equitable Life designs its traditional IRA contracts to qualify as individual
retirement annuities under Section 408(b) of the Internal Revenue Code.
The EQUI-VEST(R) SEP and SIMPLE IRA contracts have been approved by the IRS as
to form for use as a traditional IRA. This IRS approval is a determination only
as to the form of the annuity. It does not represent a determination of the
merits of the annuity as an investment. The IRS approval does not address every
feature possibly available under the EQUI-VEST(R) SEP, SARSEP and SIMPLE IRA
contracts. Because the IRS has announced that issuers of formally approved IRAs
must amend their contracts to reflect recent tax law changes and resubmit the
amended contracts to retain such formal approval, Equitable intends to comply
with such requirement during 2002.
CANCELLATION
You can cancel an EQUI-VEST(R) IRA contract by following the directions under
"Your right to cancel within a certain number of days" earlier in the
prospectus. If you cancel a contract, we may have to withhold tax, and we must
report the transaction to the IRS. A contract cancellation could have an
unfavorable tax impact.
CONTRIBUTIONS
As SEP, SARSEP-IRA and SIMPLE IRA contracts are employer- funded traditional
IRAs, the employee does not make regular contributions to the contract other
than through the employer. However, an employee can make rollover or transfer
contributions to SEP-IRA, SARSEP-IRA, and in limited circumstances, to
SIMPLE-IRA contracts. We reserve the right to approve the circumstances under
which we will take rollover contributions to EQUI-VEST(R) SEP, SARSEP-IRA and
SIMPLE IRA contracts.
RECHARACTERIZATION
Employer-funded amounts that have been contributed as traditional IRA funds
may, in some circumstances, subsequently be treated as Roth IRA funds. Special
federal income tax rules allow you to change your mind again and have
employer-funded amounts that are subsequently treated as Roth IRA funds, once
again treated as traditional IRA funds. You do this by using the forms we
prescribe. This is referred to as having "recharacterized" your contribution.
ROLLOVERS AND TRANSFER CONTRIBUTIONS
Rollover contributions may be made to a traditional IRA from these "eligible
retirement plans":
o qualified plans;
o governmental 457(b) plans (beginning in 2002);
o TSAs (including Internal Revenue Code Section 403(b)(7) custodial accounts);
and
o other traditional IRAs.
Direct transfer contributions may only be made directly from one traditional
IRA to another. Any amount contributed to a traditional IRA after you reach age
70-1/2 must be net of your required minimum distribution for the year in which
the rollover or direct transfer contribution is made.
ROLLOVERS FROM ELIGIBLE RETIREMENT PLANS OTHER THAN TRADITIONAL IRAS
There are two ways to do rollovers:
o Do it yourself
You actually receive a distribution that can be rolled over and you roll it
over to a traditional IRA within 60 days after the date you receive the
funds. The distribution from your eligible retirement plan will be net of
20% mandatory federal income tax withholding. If you want, you can replace
the withheld funds yourself and roll over the full amount.
o Direct rollover
You tell the trustee or custodian of the eligible retirement plan to send
the eligible rollover distribution directly to your traditional IRA issuer.
Direct rollovers are not subject to mandatory federal income tax
withholding. All distributions from a TSA, qualified plan or governmental
EDC plan are eligible rollover distributions, unless the distributions are:
o "required minimum distributions" after age 70-1/2 or retirement; or
o substantially equal periodic payments made at least annually for your life
(or life expectancy) or the joint lives (or joint life expectancies) of
you and your designated beneficiary; or
o substantially equal periodic payments made for a specified period of 10 years
or more; or
o a hardship withdrawal; or
o corrective distributions which fit specified technical tax rules; or
o loans that are treated as distributions; or
o a death benefit payment to a beneficiary who is not your surviving spouse; or
o a qualified domestic relations order distribution to a beneficiary who is not
your current spouse or former spouse.
Before you decide to roll over your payment to another employer plan, you
should check with the administrator of that plan about whether the plan accepts
rollovers and, if so, the types of distributions it accepts. You should also
check with the administrator of the receiving plan about any documents required
to be completed before it will accept a rollover.
ROLLOVERS OF AFTER-TAX CONTRIBUTIONS FROM ELIGIBLE RETIREMENT PLANS OTHER THAN
TRADITIONAL IRAS
Beginning in 2002, any after-tax contributions you have made to a qualified
plan or TSA (but not a governmental EDC plan) may be rolled
52 Tax information
over to a traditional IRA (either in a direct rollover or a rollover you do
yourself). When the recipient plan is a traditional IRA, you are responsible
for recordkeeping and calculating the taxable amount of any distributions you
take from that traditional IRA.
ROLLOVERS FROM TRADITIONAL IRAS TO TRADITIONAL IRAS
You may roll over amounts from one traditional IRA to one or more of your other
traditional IRAs if you complete the transaction within 60 days after you
receive the funds. You may make such a rollover only once in every 12-month
period for the same funds. Trustee-to-trustee or custodian-to-custodian direct
transfers are not rollover transactions. You can make these more frequently
than once in every 12-month period.
The surviving spouse beneficiary of a deceased individual can roll over or
directly transfer an inherited traditional IRA to one or more other traditional
IRAs. Also, in some cases, traditional IRAs can be transferred on a tax-free
basis between spouses or former spouses as a result of a court ordered divorce
or separation decree.
EXCESS CONTRIBUTIONS
Excess contributions to IRAs are subject to a 6% excise tax for the year in
which made and for each year after until withdrawn. The following are examples
of excess contributions to IRAs:
o regular contributions to a traditional IRA made after you reach age 70-1/2; or
o rollover contributions of amounts which are not eligible to be rolled over,
for example, minimum distributions required to be made after age 70-1/2.
You can avoid the excise tax by withdrawing an excess contribution before the
due date (including extensions) for filing your federal income tax return for
the year. You do not have to include the excess contribution withdrawn as part
of your income. It is also not subject to the 10% additional penalty tax on
early distributions discussed below under "Early distribution penalty tax." You
do have to withdraw any earnings that are attributed to the excess
contribution. The withdrawn earnings would be included in your gross income and
could be subject to the 10% penalty tax.
Even after the due date for filing your return, you may withdraw an excess
rollover contribution, without income inclusion or 10% penalty, if:
(1) the rollover was from a qualified retirement plan to a traditional IRA;
(2) the excess contribution was due to incorrect information that the plan
provided; and
(3) you took no tax deduction for the excess contribution.
WITHDRAWALS, PAYMENTS AND TRANSFERS OF FUNDS OUT OF TRADITIONAL IRAS
NO FEDERAL INCOME TAX LAW RESTRICTIONS ON WITHDRAWALS
You can withdraw any or all of your funds from a traditional IRA at any time.
You do not need to wait for a special event like retirement.
TAXATION OF PAYMENTS
Earnings in traditional IRAs are not subject to federal income tax until you or
your beneficiary receive them. Taxable payments or distributions include
withdrawals from your contract, surrender of your contract and annuity payments
from your contract. Death benefits are also taxable. The conversion of amounts
from a SEP IRA, SARSEP IRA or SIMPLE IRA (after two plan participant years) to
a Roth IRA is taxable. Generally, the total amount of any distribution from a
traditional IRA must be included in your gross income as ordinary income.
In addition, a distribution is not taxable if:
o the amount received is a withdrawal of excess contributions, as described
under "Excess contributions" above; or
o the entire amount received is rolled over to another traditional IRA or other
eligible retirement plan. (See "Rollovers from eligible retirement plans
other than traditional IRAs" above.)
Distributions from a traditional IRA are not eligible for favorable ten-year
averaging and long-term capital gain treatment available to certain
distributions from qualified plans under very limited circumstances.
REQUIRED MINIMUM DISTRIBUTIONS
Traditional IRAs are subject to required minimum distribution rules described
in "Required minimum distributions" later in this Prospectus.
PAYMENTS TO A BENEFICIARY AFTER YOUR DEATH
IRA death benefits are taxed the same as IRA distributions.
SUCCESSOR ANNUITANT AND OWNER
If your spouse is the sole primary beneficiary and elects to become the
successor annuitant and owner, no death benefit is payable until your surviving
spouse's death.
BORROWING AND LOANS ARE PROHIBITED TRANSACTIONS
You cannot get loans from a traditional IRA. You cannot use a traditional IRA
as collateral for a loan or other obligation. If you borrow against your IRA or
use it as collateral, its tax-favored status will be lost as of the first day
of the tax year in which this prohibited event occurs. If this happens, you
must include the value of the traditional IRA in your federal gross income.
Also, the early distribution penalty tax of 10% may apply if you have not
reached age 59-1/2 before the first day of that tax year.
EARLY DISTRIBUTION PENALTY TAX
A penalty tax of 10% of the taxable portion of a distribution applies to
distributions from a traditional IRA made before you reach age 59-1/2. Some of
the available exceptions to the pre-age 59-1/2 penalty tax include distributions
made:
o on or after your death; or
o because you are disabled (special federal income tax definition); or
Tax information 53
o to pay for certain extraordinary medical expenses (special federal income tax
definition); or
o to pay medical insurance premiums for unemployed individuals (special federal
income tax definition); or
o to pay certain first-time home buyer expenses (special federal income tax
definition); or
o to pay certain higher education expenses (special federal income tax
definition); or
o in the form of substantially equal periodic payments made at least annually
over your life (or your life expectancy), or over the joint lives of you
and your beneficiary (or your joint life expectancy) using an IRS-approved
distribution method.
ILLUSTRATION OF GUARANTEED INTEREST RATES
In the following two tables, we provide information that the IRS requires us to
furnish to prospective IRA contract owners. In the tables we illustrate the 3%
minimum guaranteed interest rate for contributions we assume are allocated
entirely to the guaranteed interest option under series 300 and 400 contracts.
In Table I we assume a $1,000 contribution made annually on the contract date
and on each anniversary after that. We assume no withdrawals or transfers were
made under the contract. In Table II we assume a single initial contribution of
$1,000, and no additional contributions. We also assume no withdrawals or
transfers. The 3% guaranteed interest rate is in the contract.
The values shown assume the withdrawal charge applies. These values reflect the
effect of the annual administrative charge deducted at the end of each contract
year in which the account value is less than $20,000.
To find the appropriate value for the end of the contract year at any
particular age, you subtract the age (nearest birthday) at issue of the
contract from the current age and find the corresponding year in the table.
Years that correspond to a current age over 70, should be ignored.
54 Tax information
You should consider the information shown in the tables in light of your
present age. Also, with respect to Table I, you should consider your ability to
contribute $1,000 annually. Any change in the amounts contributed annually in
Table I, or in the amount of the single contribution in Table II would, of
course, change the results shown.
TABLE I
ACCOUNT VALUES AND
CASH VALUES
(assuming $1,000 contributions made annually
at the beginning of the contract year)
- -------------------------------------------------
3% MINIMUM GUARANTEE
- -------------------------------------------------
CONTRACT ACCOUNT CASH
YEAR END VALUE VALUE
- -------------------------------------------------
1 $ 1,009.40 $ 954.89
2 $ 2,039.68 $ 1,929.54
3 $ 3,100.87 $ 2,933.43
4 $ 4,193.90 $ 3,967.43
5 $ 5,319.72 $ 5,032.45
6 $ 6,479.31 $ 6,129.42
7 $ 7,673.69 $ 7,313.69
8 $ 8,903.90 $ 8,543.90
9 $ 10,171.01 $ 9,811.01
10 $ 11,476.14 $ 11,116.14
11 $ 12,820.43 $ 12,460.43
12 $ 14,205.04 $ 13,845.04
13 $ 15,631.19 $ 15,271.19
14 $ 17,100.13 $ 16,740.13
15 $ 18,613.13 $ 18,253.13
16 $ 20,201.53 $ 19,841.53
17 $ 21,837.57 $ 21,477.57
18 $ 23,522.70 $ 23,162.70
19 $ 25,258.38 $ 24,898.38
20 $ 27,046.13 $ 26,686.13
21 $ 28,887.52 $ 28,527.52
22 $ 30,784.14 $ 30,424.14
23 $ 32,737.67 $ 32,377.67
24 $ 34,749.80 $ 34,389.80
25 $ 36,822.29 $ 36,462.29
- -------------------------------------------------
3% MINIMUM GUARANTEE
- -------------------------------------------------
CONTRACT ACCOUNT CASH
YEAR END VALUE VALUE
- -------------------------------------------------
26 $ 38,956.96 $ 38,596.96
27 $ 41,155.67 $ 40,795.67
28 $ 43,420.34 $ 43,060.34
29 $ 45,752.95 $ 45,392.95
30 $ 48,155.53 $ 47,795.53
31 $ 50,630.20 $ 50,270.20
32 $ 53,179.11 $ 52,819.11
33 $ 55,804.48 $ 55,444.48
34 $ 58,508.61 $ 58,148.61
35 $ 61,293.87 $ 60,933.87
36 $ 64,162.69 $ 63,802.69
37 $ 67,117.57 $ 66,757.57
38 $ 70,161.10 $ 69,801.10
39 $ 73,295.93 $ 72,935.93
40 $ 76,524.81 $ 76,164.81
41 $ 79,850.55 $ 79,490.55
42 $ 83,276.07 $ 82,916.07
43 $ 86,804.35 $ 86,444.35
44 $ 90,438.48 $ 90,078.48
45 $ 94,181.64 $ 93,821.64
46 $ 98,037.08 $ 97,677.08
47 $ 102,008.20 $ 101,648.20
48 $ 106,098.44 $ 105,738.44
49 $ 110,311.40 $ 109,951.40
50 $ 114,650.74 $ 114,290.74
- --------------------------------------------------
Tax information 55
TABLE II
ACCOUNT VALUES AND
CASH VALUES
(assuming a single contribution of $1,000 and
no further contribution)
- --------------------------------------------
3% MINIMUM GUARANTEE
- --------------------------------------------
CONTRACT ACCOUNT CASH
YEAR END VALUE VALUE
- --------------------------------------------
1 $ 1,009.40 $ 954.89
2 $ 1,018.89 $ 963.87
3 $ 1,019.46 $ 964.40
4 $ 1,020.04 $ 964.96
5 $ 1,020.64 $ 965.53
6 $ 1,021.26 $ 966.11
7 $ 1,021.90 $ 1,021.90
8 $ 1,022.55 $ 1,022.55
9 $ 1,023.23 $ 1,023.23
10 $ 1,023.93 $ 1,023.93
11 $ 1,024.65 $ 1,024.65
12 $ 1,025.38 $ 1,025.38
13 $ 1,026.15 $ 1,026.15
14 $ 1,026.93 $ 1,026.93
15 $ 1,027.74 $ 1,027.74
16 $ 1,028.57 $ 1,028.57
17 $ 1,029.43 $ 1,029.43
18 $ 1,030.31 $ 1,030.31
19 $ 1,031.22 $ 1,031.22
20 $ 1,032.16 $ 1,032.16
21 $ 1,033.12 $ 1,033.12
22 $ 1,034.11 $ 1,034.11
23 $ 1,035.14 $ 1,035.14
24 $ 1,036.19 $ 1,036.19
25 $ 1,037.28 $ 1,037.28
- --------------------------------------------
- --------------------------------------------
3% MINIMUM GUARANTEE
- --------------------------------------------
CONTRACT ACCOUNT CASH
YEAR END VALUE VALUE
- --------------------------------------------
26 $ 1,038.40 $ 1,038.40
27 $ 1,039.55 $ 1,039.55
28 $ 1,040.73 $ 1,040.73
29 $ 1,041.96 $ 1,041.96
30 $ 1,043.22 $ 1,043.22
31 $ 1,044.51 $ 1,044.51
32 $ 1,045.85 $ 1,045.85
33 $ 1,047.22 $ 1,047.22
34 $ 1,048.64 $ 1,048.64
35 $ 1,050.10 $ 1,050.10
36 $ 1,051.60 $ 1,051.60
37 $ 1,053.15 $ 1,053.15
38 $ 1,054.74 $ 1,054.74
39 $ 1,056.39 $ 1,056.39
40 $ 1,058.08 $ 1,058.08
41 $ 1,059.82 $ 1,059.82
42 $ 1,061.61 $ 1,061.61
43 $ 1,063.46 $ 1,063.46
44 $ 1,065.37 $ 1,065.37
45 $ 1,067.33 $ 1,067.33
46 $ 1,069.35 $ 1,069.35
47 $ 1,071.43 $ 1,071.43
48 $ 1,073.57 $ 1,073.57
49 $ 1,075.78 $ 1,075.78
50 $ 1,078.05 $ 1,078.05
- --------------------------------------------
56 Tax information
REQUIRED MINIMUM DISTRIBUTIONS
- --------------------------------------------------------------------------------
The IRS and Treasury recently proposed revisions to the minimum distribution
rules. We expect these rules to be finalized in 2002. Since the proposed
revisions permit (under specified circumstances) plan administrators, plan
participants, IRA owners, TSA owners and death beneficiaries under these plans
and arrangements to apply the proposed revisions to distributions for calendar
year 2001, the discussion below generally reflects the proposed revisions. Note
that plan approval may be needed to use the new proposed revisions.
- --------------------------------------------------------------------------------
If you are a participant in a qualified retirement plan, an EDC plan (both
employer types), or own a TSA or traditional IRA, including SEP, SARSEP or
SIMPLE IRA, the required minimum distribution rules force you to start
calculating and taking annual distributions from these tax-favored retirement
plans and arrangements by a specified date. The beginning date depends on the
type of plan or arrangement, and your age and retirement status. The
distribution requirements are designed to use up your interest in the plan over
your life expectancy. Whether the correct amount has been distributed is
calculated on a year-by-year basis; there are no provisions to allow amounts
taken in excess of the required amount to be carried back to other years.
LIFETIME REQUIRED MINIMUM DISTRIBUTIONS -- WHEN YOU HAVE TO TAKE THE FIRST
REQUIRED MINIMUM DISTRIBUTION
You must start taking annual distributions from your traditional IRAs for the
year in which you turn age 70-1/2.
Generally, qualified plan, TSA and EDC plan participants must also take the
first required minimum distribution for the calendar year in which the
participant turns age 70-1/2. However, qualified plan, TSA and EDC plan
participants may be able to delay the start of required minimum distributions
for all or part of the account balance until after age 70-1/2, as follows:
o For qualified plan, TSA and EDC plan participants who have not retired from
service with the employer who provided the funds for this qualified plan,
TSA, or EDC contract by the calendar year the participant turns age 70-1/2,
the required beginning date for minimum distributions is extended to April
1st following the calendar year of retirement. Note that this rule does
not apply to qualified plan participants who are 5% owners.
o TSA plan participants may also delay the start of required minimum
distributions to age 75 of the portion of their account value attributable
to their December 31, 1986 TSA account balance, even if retired at age
70-1/2.
The first required minimum distribution is for the calendar year in which you
turn age 70-1/2, or the year you retire, if you are eligible for the delayed
start rule. You have the choice to take this first required minimum
distribution during the calendar year you turn 70-1/2 or retire, or to delay
taking it until the first three-month period in the next calendar year (January
1 - April 1). Distributions must start no later than your "Required Beginning
Date," which is April 1st of the calendar year after the calendar year in which
you turn age 70-1/2 or retire if you are eligible for the delayed start rule. If
you choose to delay taking the first annual minimum distribution, then you will
have to take two minimum distributions in that year -- the delayed one for the
first year and the one actually for that year. Once minimum distributions
begin, they must be made at some time each year.
HOW YOU CALCULATE REQUIRED MINIMUM DISTRIBUTIONS
There are two approaches to taking required minimum distributions --
"account-based" or "annuity-based."
ACCOUNT-BASED METHOD. If you choose an "account-based" method, you divide the
value of your qualified plan, TSA, EDC, or traditional IRA as of December 31st
of the past calendar year by a number corresponding to your age from an IRS
table to give you the required minimum distribution amount for that particular
plan or arrangement for that year. If your spouse is your sole beneficiary and
more than 10 years younger than you, the dividing number you use may be from
another IRS table and may produce a smaller lifetime required minimum
distribution amount. Regardless of the table used, the required minimum
distribution amount will vary each year as the account value and the divisor
change. If you initially choose an account-based method, you may be able to
later apply your funds to a life annuity-based payout with any certain period
not exceeding remaining life expectancy.
ANNUITY-BASED METHOD. If you choose an annuity-based method you do not have to
do annual calculations. You apply the account value to an annuity payout for
your life or the joint lives of you and a designated beneficiary, or for a
period certain not extending beyond applicable life expectancies.
DO YOU HAVE TO PICK THE SAME METHOD TO CALCULATE YOUR REQUIRED MINIMUM
DISTRIBUTIONS FOR ALL OF YOUR TRADITIONAL IRAS AND OTHER RETIREMENT PLANS?
No. If you want, you can choose a different method and a different beneficiary
for each of your traditional IRAs and other retirement plans. For example, you
can choose an annuity payout from one IRA, a different annuity payout from a
qualified plan, and an account-based annual withdrawal from another IRA.
WILL WE PAY YOU THE ANNUAL AMOUNT EVERY YEAR FROM YOUR TRADITIONAL IRA BASED ON
THE METHOD YOU CHOOSE?
No, unless you affirmatively select an annuity payout option or an
account-based withdrawal option such as our minimum distribution withdrawal
option. Otherwise, you will be responsible for calculating your required
minimum distribution withdrawal.
WHAT IF YOU TAKE MORE THAN YOU NEED TO FOR ANY YEAR?
The required minimum distribution amount for your traditional IRAs is
calculated on a year-by-year basis. There are no carry-back or carry-forward
provisions. Also, you cannot apply required minimum distribution amounts you
take from your qualified plans to the amounts you have to take from your
traditional IRAs and vice-versa. However, the IRS will let you calculate the
required minimum distribution for each traditional IRA or TSA that you
maintain, using the method that you picked for that particular IRA or TSA. You
can add these required minimum distribution amount calculations together. As
long as the total amount you take out every year satisfies your overall
Tax information 57
traditional IRA or TSA required minimum distribution amount, you may choose to
take your annual required minimum distribution from any one or more traditional
IRAs that you own.
WHAT IF YOU TAKE LESS THAN YOU NEED TO FOR ANY YEAR?
Your plan or arrangement could be disqualified, and you could have to pay tax
on the entire value. Even if your plan or arrangement is not disqualified, you
could have to pay a 50% penalty tax on the shortfall (required amount less
amount actually taken). It is your responsibility to meet the required minimum
distribution rules. We will remind you when our records show that your age
70-1/2 is approaching. If this is an IRA or TSA and you do not select a method
with us, we will assume you are taking your required minimum distribution from
another traditional IRA or TSA that you own. Note that in the case of a
qualified plan or EDC the distribution must be taken annually.
WHAT ARE THE REQUIRED MINIMUM DISTRIBUTION PAYMENTS AFTER YOU DIE? These could
vary on whether you die before or after your Required Beginning Date for
lifetime required minimum distribution payments, and the status of your
beneficiary.
INDIVIDUAL BENEFICIARY. Regardless of whether your death occurs before or after
your Required Beginning Date, under the revised proposed rules an individual
death beneficiary calculates annual post-death required minimum distribution
payments based on the beneficiary's life expectancy using the "term certain
method." That is, he or she determines his or her life expectancy using the
life expectancy tables as of the calendar year after the owner's or the
participant's death and reduces that number by one each subsequent year.
If you die before your Required Beginning Date, the revised proposed rules
permit any individual beneficiary, including a spousal beneficiary, to elect
instead to apply the "5-year rule." Under this rule, instead of annual payments
having to be made beginning with the first in the year following the owner's
death, the entire account must be distributed by the end of the fifth year
following the year of the owner's death. No distribution is required for a year
before that fifth year.
SPOUSAL BENEFICIARY. If you die after your Required Beginning Date, and your
death beneficiary is your surviving spouse, your spouse has a number of
choices. The revised proposed rules permit post-death distributions to be made
over your spouse's single life expectancy. Any amounts distributed after that
surviving spouse's death are made over the spouse's life expectancy calculated
in the year of his/her death, reduced by one for each subsequent year. In some
circumstances, for traditional IRA contracts only, your surviving spouse may
elect to become the owner of the traditional IRA and halt distributions until
he or she reaches age 70-1/2, or roll over amounts from your traditional IRA
into his/her own traditional IRA or other eligible retirement plan.
If you die before your Required Beginning Date, and the death beneficiary is
your surviving spouse, the revised proposed rules permit the spouse to delay
starting payments over his/her life expectancy until the year in which you
would have attained age 70-1/2.
NON-INDIVIDUAL BENEFICIARY. If you die after your Required Beginning Date, and
your death beneficiary is a non-individual such as the estate, the revised
proposed rules permit the beneficiary to calculate the post-death required
minimum distribution amounts based on the owner's life expectancy in the year
of death. However, note that we need an individual annuitant to keep an annuity
contract/ certificate in force. If the beneficiary is not an individual, we
must distribute amounts remaining in the annuity contract after the death of
the annuitant.
If you die before your Required Beginning Date for lifetime required minimum
distribution payments, and the death beneficiary is a non-individual such as
the estate, the revised proposed rules continue to apply the 5-year rule
discussed above under "Individual beneficiary." Please note that we need an
individual annuitant to keep an annuity contract/certificate in force. If the
beneficiary is not an individual, we must distribute amounts remaining in the
annuity contract after the death of the annuitant.
ERISA MATTERS
ERISA rules are designed to save and protect qualified retirement plan assets
to be paid to plan participants when they retire.
Qualified plans under Section 401 of the Internal Revenue Code are generally
subject to ERISA. Some TSAs may be subject to Title I of ERISA, generally
dependent on the level of employer involvement, for example, if the employer
makes matching contributions.
In addition, certain loan rules apply only to loans under ERISA plans:
o For contracts which are subject to ERISA, the trustee or sponsoring employer
is responsible for ensuring that any loan meets applicable DOL
requirements. It is the responsibility of the plan administrator, the
trustee of the qualified plan and/or the employer, and not Equitable Life,
to properly administer any loan made to plan participants.
o With respect to specific loans made by the plan to a plan participant, the
plan administrator determines the interest rate, the maximum term
consistent with EQUI-VEST(R) processing and all other terms and conditions
of the loan.
o Only 50% of the participant's vested account balance may serve as security
for a loan. To the extent that a participant borrows an amount which
should be secured by more than 50% of the participant's vested account
balance, it is the responsibility of the trustee or plan administrator to
obtain the additional security.
o Each new or renewed loan must bear a reasonable rate of interest commensurate
with the interest rates charged by persons in the business of lending
money for loans that would be made under similar circumstances.
o Loans must be available to all plan participants, former participants (or
death beneficiaries of participants) who still have account balances under
the plan, and alternate payees on a reasonably equivalent basis.
o Plans subject to ERISA provide that the participant's spouse must consent in
writing to the loan.
CERTAIN RULES APPLICABLE TO PLANS DESIGNED TO COMPLY WITH SECTION 404(C) OF
ERISA
Section 404(c) of ERISA, and the related DOL regulation, provide that if a plan
participant or beneficiary exercises control over the assets in
58 Tax information
his or her plan account, plan fiduciaries will not be liable for any loss that
is the direct and necessary result of the plan participant's or beneficiary's
exercise of control. As a result, if the plan complies with Section 404(c) and
the DOL regulation thereunder, the plan participant can make and is responsible
for the results of his or her own investment decisions.
Section 404(c) plans must provide, among other things, that a broad range of
investment choices are available to plan participants and beneficiaries and
must provide such plan participants and beneficiaries with enough information
to make informed investment decisions. Compliance with the Section 404(c)
regulation is completely voluntary by the plan sponsor, and the plan sponsor
may choose not to comply with Section 404(c).
The EQUI-VEST(R) Trusteed, HR-10 Annuitant-Owned, SIMPLE IRA and TSA contracts
provide the broad range of investment choices and information needed in order
to meet the requirements of the Section 404(c) regulation. If the plan is
intended to be a Section 404(c) plan, it is, however, the plan sponsor's
responsibility to see that the requirements of the DOL regulation are met.
Equitable Life and its financial professionals shall not be responsible if a
plan fails to meet the requirements of Section 404(c).
FEDERAL AND STATE INCOME TAX WITHHOLDING AND INFORMATION REPORTING
We must withhold federal income tax from distributions from annuity contracts.
You may be able to elect out of this income tax withholding in some cases.
Generally, we do not have to withhold if your distributions are not taxable.
The rate of withholding will depend on the type of distribution and, in certain
cases, the amount of your distribution. Any income tax withheld is a credit
against your income tax liability. If you do not have sufficient income tax
withheld or do not make sufficient estimated income tax payments, you may incur
penalties under the estimated income tax rules.
You must file your request not to withhold in writing before the payment or
distribution is made. Our processing office will provide forms for this
purpose. You cannot elect out of withholding unless you provide us with your
correct Taxpayer Identification Number and a United States residence address.
You cannot elect out of withholding if we are sending the payment out of the
United States.
You should note the following special situations:
o We might have to withhold and/or report on amounts we pay under a free look
or cancellation.
o We are generally required to withhold on conversion rollovers of traditional
IRAs in SEP, SARSEP, or SIMPLE IRAs to Roth IRAs, as it is considered a
withdrawal from the traditional IRA and is taxable.
Special withholding rules apply to foreign recipients and United States
citizens residing outside the United States. We do not discuss these rules here
in detail. However, we may require additional documentation in the case of
payments made to non-United States persons and United States persons living
abroad prior to processing any requested transaction.
Certain states have indicated that state income tax withholding will also apply
to payments from the contracts made to residents. In some states, you may elect
out of state withholding, even if federal withholding applies. Generally, an
election out of federal withholding will also be considered an election out of
state withholding. If you need more information concerning a particular state
or any required forms, call our processing office at the toll-free number.
FEDERAL INCOME TAX WITHHOLDING ON PERIODIC ANNUITY PAYMENTS
We withhold differently on "periodic" and "non-periodic" payments. For a
periodic annuity payment, for example, unless you specify a different number of
withholding exemptions, we withhold assuming that you are married and claiming
three withholding exemptions. If you do not give us your correct Taxpayer
Identification Number, we withhold as if you are single with no exemptions.
Based on the assumption that you are married and claiming three withholding
exemptions, if you receive less than $15,360 in periodic annuity payments in
2002 your payments will generally be exempt from federal income tax
withholding. You could specify a different choice of withholding exemption or
request that tax be withheld. Your withholding election remains effective
unless and until you revoke it. You may revoke or change your withholding
election at any time.
FEDERAL INCOME TAX WITHHOLDING ON NON-PERIODIC ANNUITY PAYMENTS (WITHDRAWALS)
For a non-periodic distribution (total surrender or partial withdrawal), and
any distribution from a qualified plan or TSA which is not an eligible rollover
distribution we generally withhold at a flat 10% rate.
You cannot elect out of withholding if the payment is an "eligible rollover
distribution" from a qualified plan or TSA. If a non-periodic distribution from
a qualified plan or TSA is not an "eligible rollover distribution" then the 10%
withholding rate applies.
MANDATORY WITHHOLDING FROM TSA, GOVERNMENTAL EDC AND QUALIFIED PLAN
DISTRIBUTIONS
Unless you have the distribution go directly to the new plan, eligible rollover
distributions from qualified plans, governmental EDC plans, and TSAs are
subject to mandatory 20% withholding. The plan administrator is responsible for
withholding from qualified plan and governmental EDC plan distributions. An
eligible rollover distribution from one of these eligible retirement plans can
be rolled over to another one of these eligible retirement plans or a
traditional IRA. All distributions from a TSA, governmental EDC plan or
qualified plan are eligible rollover distributions unless they are on the
following list of exceptions:
o any distributions which are "required minimum distributions" after age 70-1/2
or retirement; or
o hardship withdrawals; or
o substantially equal periodic payments made at least annually for your life
(or life expectancy) or the joint lives (or joint life expectancy) of you
and your designated beneficiary; or
Tax information 59
o substantially equal periodic payments made for a specified period of 10 years
or more; or
o corrective distributions which fit specified technical tax rules; or
o loans that are treated as distributions; or
o a death benefit payment to a beneficiary who is not your surviving spouse; or
o a qualified domestic relations order distribution to a beneficiary who is not
your current spouse or former spouse.
A death benefit payment to your surviving spouse, or a qualified domestic
relations order distribution to your current or former spouse, may be a
distribution subject to mandatory 20% withholding.
IMPACT OF TAXES TO EQUITABLE LIFE
The contracts provide that we may charge Separate Account A for taxes. We do
not now, but may in the future set up reserves for such taxes.
60 Tax information
8. More information
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ABOUT OUR SEPARATE ACCOUNT A
Each variable investment option is a subaccount of our Separate Account A. We
established Separate Account A in 1968 under special provisions of the New York
Insurance Law. These provisions prevent creditors from any other business we
conduct from reaching the assets we hold in our variable investment options for
owners of our variable annuity contracts. We are the legal owner of all of the
assets in Separate Account A and may withdraw any amounts that exceed our
reserves and other liabilities with respect to variable investment options
under our contracts. The results of Separate Account A's operations are
accounted for without regard to Equitable Life's other operations.
Separate Account A is registered under the Investment Company Act of 1940 and
is classified by that act as a "unit investment trust." The SEC, however, does
not manage or supervise Equitable Life or Separate Account A.
Each subaccount (variable investment option) within Separate Account A invests
solely in Class IA/A or Class IB/B shares, respectively, issued by the
corresponding portfolios of either Trust.
We reserve the right subject to compliance with laws that apply:
(1) to add variable investment options to, or to remove variable investment
options from, Separate Account A, or to add other separate accounts;
(2) to combine any two or more variable investment options;
(3) to transfer the assets we determine to be the shares of the class of
contracts to which the contracts belong from any variable investment
option to another variable investment option;
(4) to operate Separate Account A or any variable investment option as a
management investment company under the Investment Company Act of 1940 (in
which case, charges and expenses that otherwise would be assessed against
an underlying mutual fund would be assessed against Separate Account A or
a variable investment option directly);
(5) to deregister Separate Account A under the Investment Company Act of 1940;
(6) to restrict or eliminate any voting rights as to Separate Account A; and
(7) to cause one or more variable investment options to invest some or all of
their assets in one or more other trusts or investment companies.
ABOUT THE TRUSTS
EQ Advisors Trust and AXA Premier VIP Trust are registered under the Investment
Company Act of 1940. They are classified as "open-end management investment
companies," more commonly called mutual funds. Each Trust issues different
shares relating to each portfolio.
Equitable Life serves as the investment manager of the Trusts. As such,
Equitable Life oversees the activities of the investment advisers with respect
to the Trusts and is responsible for retaining or discontinuing the services of
those advisers. (Prior to September 1999, EQ Financial Consultants, Inc., the
predecessor to AXA Advisors, LLC and an affiliate of Equitable Life served as
investment manager to EQ Advisors Trust.)
EQ Advisors Trust commenced operations on May 1, 1997. For periods prior to
October 18, 1999 the Alliance portfolios (other than EQ/Alliance Premier Growth
and EQ/Alliance Technology) were part of The Hudson River Trust. On October 18,
1999, these portfolios became corresponding portfolios of EQ Advisors Trust.
AXA Premier VIP Trust commenced operations on December 31, 2001.
The Trusts do not impose sales charges or "loads" for buying and selling their
shares. All dividends and other distributions on the Trusts' shares are
reinvested in full. The Board of Trustees of each Trust may establish
additional portfolios or eliminate existing portfolios at any time. More
detailed information about each Trust, its portfolio investment objectives,
policies, restrictions, risks, expenses, its Rule 12b-1 plan relating to its
Class IB/B shares, and other aspects of its operations, appears in the
prospectuses for each Trust, which are attached at the end of this Prospectus,
or in their respective SAIs, which are available upon request.
ABOUT OUR FIXED MATURITY OPTIONS
RATES TO MATURITY AND PRICE PER $100 OF MATURITY VALUE
We can determine the amount required to be allocated to one or more fixed
maturity options in order to produce specified maturity values. For example, we
can tell you how much you need to allocate per $100 of maturity value.
The rates to maturity are determined weekly. The rates in the table are
illustrative only and will most likely differ from the rates applicable at time
of purchase. Current rates to maturity can be obtained through TOPS or EQAccess
or from your financial professional.
The rates to maturity for new allocations as of February 15, 2002 and the
related price per $100 of maturity value were as shown below:
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FIXED MATURITY OPTIONS
WITH JUNE 15TH
MATURITY DATE OF RATE TO MATURITY AS OF PRICE PER $100 OF
MATURITY YEAR FEBRUARY 15, 2002 MATURITY VALUE
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2002 3.00% $ 99.03
2003 3.00% $ 96.15
2004 3.25% $ 92.81
2005 3.95% $ 87.39
2006 4.30% $ 83.33
2007 4.75% $ 78.08
2008 5.05% $ 73.19
2009* 5.30% $ 68.47
2010* 5.50% $ 64.00
2011* 5.65% $ 59.87
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*Not available in Oregon.
More information 61
HOW WE DETERMINE THE MARKET VALUE ADJUSTMENT
We use the following procedure to calculate the market value adjustment (up or
down) we make if you withdraw all of your value from a fixed maturity option
before its maturity date.
(1) We determine the market adjusted amount on the date of the withdrawal as
follows:
(a) We determine the fixed maturity amount that would be payable on the
maturity date, using the rate to maturity for the fixed maturity
option.
(b) We determine the period remaining in your fixed maturity option (based
on the withdrawal date) and convert it to fractional years based on a
365-day year. For example, three years and 12 days becomes 3.0329.
(c) We determine the current rate to maturity that applies on the withdrawal
date to new allocations to the same fixed maturity option.
(d) We determine the present value of the fixed maturity amount payable at
the maturity date, using the period determined in (b) and the rate
determined in (c).
(2) We determine the fixed maturity amount as of the current date.
(3) We subtract (2) from the result in (1)(d). The result is the market value
adjustment applicable to such fixed maturity option, which may be positive
or negative.
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Your market adjusted amount is the present value of the maturity value
discounted at the rate to maturity in effect for new contributions to that same
fixed maturity option on the date of the calculation.
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If you withdraw only a portion of the amount in a fixed maturity option, the
market value adjustment will be a percentage of the market value adjustment
that would have applied if you had withdrawn the entire value in that fixed
maturity option. This percentage is equal to the percentage of the value in the
fixed maturity option that you are withdrawing. Any withdrawal charges that are
deducted from a fixed maturity option will result in a market value adjustment
calculated in the same way. See Appendix III later in this Prospectus for an
example.
For purposes of calculating the rate to maturity for new allocations to a fixed
maturity option (see (1)(c) above), we use the rate we have in effect for new
allocations to that fixed maturity option. We use this rate even if new
allocations to that option would not be accepted at that time. This rate will
not be less than 3%. If we do not have a rate to maturity in effect for a fixed
maturity option to which the "current rate to maturity" in (1)(c) above would
apply, we will use the rate at the next closest maturity date. If we are no
longer offering new fixed maturity options, the "current rate to maturity" will
be determined in accordance with our procedures then in effect. We reserve the
right to add up to 0.50% to the current rate in (1)(c) above for purposes of
calculating the market value adjustment only.
INVESTMENTS UNDER THE FIXED MATURITY OPTIONS
Amounts allocated to the fixed maturity options are held in a "nonunitized"
separate account we have established under the New York Insurance Law. This
separate account provides an additional measure of assurance that we will make
full payment of amounts due under the fixed maturity options. Under New York
Insurance Law, the portion of the separate account's assets equal to the
reserves and other contract liabilities relating to the contracts are not
chargeable with liabilities from any other business we may conduct. We own the
assets of the separate account, as well as any favorable investment performance
on those assets. You do not participate in the performance of the assets held
in this separate account. We may, subject to state law that applies, transfer
all assets allocated to the separate account to our general account. We
guarantee all benefits relating to your value in the fixed maturity options,
regardless of whether assets supporting fixed maturity options are held in a
separate account or our general account.
We have no specific formula for establishing the rates to maturity for the
fixed maturity options. We expect the rates to be influenced by, but not
necessarily correspond to, among other things, the yields that we can expect to
realize on the separate account's investments from time to time. Our current
plans are to invest in fixed-income obligations, including corporate bonds,
mortgage-backed and asset-backed securities and government and agency issues
having durations in the aggregate consistent with those of the fixed maturity
options.
Although the above generally describes our plans for investing the assets
supporting our obligations under the fixed maturity options under the
contracts, we are not obligated to invest those assets according to any
particular plan except as we may be require to by state insurance laws. We will
not determine the rates to maturity we establish by the performance of the
nonunitized separate account.
ABOUT THE GENERAL ACCOUNT
Our general account supports all of our policy and contract guarantees,
including those that apply to the guaranteed interest option and the fixed
maturity options as well as our general obligations.
The general account is subject to regulation and supervision by the Insurance
Department of the State of New York and to the insurance laws and regulations
of all jurisdictions where we are authorized to do business. Because of
exemptions and exclusionary provisions that apply, interests in the general
account have not been registered under the Securities Act of 1933, nor is the
general account an investment company under the Investment Company Act of 1940.
However, the market value adjustment interest under the contracts are
registered under the Securities Act of 1933.
We have been advised that the staff of the SEC has not reviewed the portions of
this prospectus that relate to the general account (other than market value
adjustment interests). The disclosure with regard to general accounts, however,
may be subject to certain provisions of the federal securities laws relating to
the accuracy and completeness of statements made in prospectuses.
ABOUT OTHER METHODS OF PAYMENT
AUTOMATIC INVESTMENT PROGRAM -- FOR CERTAIN SEP AND KEOGH PLAN CONTRACTS ONLY
You may use our automatic investment program, or "AIP," to have a specified
amount automatically deducted from a bank checking
62 More information
account, bank money market account, or credit union checking account and
contributed as an additional contribution into your contracts on a monthly
basis. AIP is available for Single Life SEP and Keogh Units provided that the
single life is the employer who provided the funds.
AIP additional contributions may be allocated to any of the variable investment
options and the guaranteed interest option but not the fixed maturity options.
Our minimum contribution amount requirement is $20 (or $50 for Series 300 and
400 contracts). You choose the day of the month you wish to have your account
debited. However, you may not choose a date later than the 28th day of the
month.
You may cancel AIP at any time by notifying our processing office. We are not
responsible for any debits made to your account before the time written notice
of cancellation is received at our processing office.
WIRE TRANSFERS. Employers may also send contributions by wire transfer from a
bank.
DATES AND PRICES AT WHICH CONTRACT EVENTS OCCUR
We describe below the general rules for when, and at what prices, events under
your contract will occur. Other portions of this prospectus describe
circumstances that may cause exceptions. We generally do not repeat those
exceptions below.
BUSINESS DAY
Our business day generally is any day on which the New York Stock Exchange is
open for trading. A business day does not include any day we choose not to open
due to emergency conditions. We may also close early due to emergency
conditions. Our business day generally ends at 4:00 p.m., Eastern Time for
purposes of determining the date when contributions are applied and any other
transaction requests are processed. Contributions will be applied and any other
transaction requests will be processed when they are received along with all
the required information unless another date applies as indicated below.
o If your contribution, transfer or any other transaction request, containing
all the required information, reaches us on a non-business day or after
4:00 p.m., Eastern time on a business day, we will use the next business
day.
o When a charge is to be deducted on a contract date anniversary that is a
non-business day, we will deduct the charge on the next business day.
o Quarterly rebalancing will be processed on a calendar year basis and
semiannual or annual rebalancing will be processed on the first business
day of the month. Rebalancing will not be done retroactively.
CONTRIBUTIONS AND TRANSFERS
o Contributions allocated to the variable investment options are invested at
the unit value next determined after the close of the business day.
o Contributions allocated to a fixed maturity option will receive the rate to
maturity in effect for that fixed maturity option on that business day.
o Contributions allocated to the guaranteed interest option will receive the
guaranteed interest rate in effect on that business day.
o If a fixed maturity option is scheduled to mature on June 15th and June 15th
is a non-business day, that fixed maturity option will mature on the prior
business day.
o Transfers to or from variable investment options will be made at the unit
value next determined after the close of the business day.
o Transfers to the guaranteed interest option will receive the guaranteed
interest rate in effect on that business day.
o Transfers to a fixed maturity option will receive the rate to maturity in
effect for that fixed maturity option on that business day.
o Transfers out of a fixed maturity option will be at the market adjusted
amount on that business day.
o For the fixed-dollar option, the first monthly transfer will occur on the
last business day of the month in which we receive your election form at
our processing office.
o For the interest sweep, the first monthly transfer will occur on the last
business day of the month following the month that we receive your
election form at our processing office.
ABOUT YOUR VOTING RIGHTS
As the owner of the shares of the Trusts we have the right to vote on certain
matters involving the portfolios, such as:
o the election of trustees; or
o the formal approval of independent auditors selected for each Trust; or
o any other matters described in each prospectus for the Trusts or requiring a
shareholders' vote under the Investment Company Act of 1940.
We will give contract owners the opportunity to instruct us how to vote the
number of shares attributable to their contracts if a shareholder vote is
taken. If we do not receive instructions in time from all contract owners, we
will vote the shares of a portfolio for which no instructions have been
received in the same proportion as we vote shares of that portfolio for which
we have received instructions. We will also vote any shares that we are
entitled to vote directly because of amounts we have in a portfolio in the same
proportions that contract owners vote.
VOTING RIGHTS OF OTHERS
Currently, we control the Trusts. Their shares are sold to our separate
accounts and an affiliated qualified plan trust. In addition, shares of the
Trusts are held by separate accounts of insurance companies both affiliated and
unaffiliated with us. Shares held by these separate accounts will probably be
voted according to the instructions of the owners of insurance policies and
contracts issued by those insurance companies. While this will dilute the
effect of the voting instructions of the contract owners, we currently do not
foresee any disadvantages because of this. The Board of Trustees of each Trust
intends to monitor events in order to identify any material irreconcilable
conflicts that may
More information 63
arise and to determine what action, if any, should be taken in response. If we
believe that a response to any of those events insufficiently protects our
contract owners, we will see to it that appropriate action is taken.
SEPARATE ACCOUNT A VOTING RIGHTS
If actions relating to Separate Account A require contract owner approval,
contract owners will be entitled to one vote for each unit they have in the
variable investment options. Each contract owner who has elected a variable
annuity payout option may cast the number of votes equal to the dollar amount
of reserves we are holding for that annuity in a variable investment option
divided by the annuity unit value for that option. We will cast votes
attributable to any amounts we have in the variable investment options in the
same proportion as votes cast by contract owners.
CHANGES IN APPLICABLE LAW
The voting rights we describe in this prospectus are created under applicable
federal securities laws. To the extent that those laws or the regulations
published under those laws eliminate the necessity to submit matters for
approval by persons having voting rights in separate accounts of insurance
companies, we reserve the right to proceed in accordance with those laws or
regulations.
ABOUT LEGAL PROCEEDINGS
Equitable Life and its affiliates are parties to various legal proceedings. In
our view, none of these proceedings is likely to have a material adverse effect
upon Separate Account A, our ability to meet our obligations under the
contracts, or the distribution of the contracts.
ABOUT OUR INDEPENDENT ACCOUNTANTS
The consolidated financial statements of Equitable Life at December 31, 2001
and 2000, and for the three years ended December 31, 2001 incorporated in this
prospectus by reference to the 2001 Annual Report on Form 10-K are incorporated
in reliance on the report of PricewaterhouseCoopers LLP independent accountants
given on the authority of such firm as experts in auditing and accounting.
FINANCIAL STATEMENTS
The financial statements of Separate Account A, as well as the consolidated
financial statements of Equitable Life, are in the SAI. The SAI is available
free of charge. You may request one by writing our processing office or calling
1-800-628-6673.
TRANSFERS OF OWNERSHIP, COLLATERAL ASSIGNMENTS, LOANS, AND BORROWING
Generally, the owner may not assign a contract for any purpose. However, a
trustee owner of a Trusteed contract can transfer ownership to the annuitant.
We will not be bound by an assignment unless it is in writing and we have
received it at our processing office. In some cases, an assignment or change of
ownership may have adverse tax consequences. See "Tax information" earlier in
this Prospectus.
You cannot assign a contract as security for a loan or other obligation. Loans
from account value, however, are permitted under TSA (but not University TSA)
and Corporate Trusteed contracts only, unless restricted by the employer.
FUNDING CHANGES
The employer or trustee can change the funding vehicle for an EDC or Trusteed
contract. You can change the funding vehicle for a TSA, SEP or SIMPLE IRA
contract.
DISTRIBUTION OF THE CONTRACTS
AXA Advisors, LLC ("AXA Advisors"), the successor to Equitable Financial
Consultants, Inc., and an affiliate of Equitable Life, is the distributor of
the contracts and has responsibility for sales and marketing functions for
Separate Account A. AXA Advisors serves as the principal underwriter of
Separate Account A. AXA Advisors is registered with the SEC as a broker-dealer
and is a member of the National Association of Securities Dealers, Inc. AXA
Advisors' principal business address is 1290 Avenue of the Americas, New York,
N.Y. 10104.
The contracts are sold by financial professionals who are registered
representatives of AXA Advisors, and its affiliates who are also our licensed
insurance agents. AXA Advisors may also receive compensation and reimbursement
for its marketing services under the terms of its distribution agreement with
Equitable Life. The offering of the contracts is intended to be continuous.
64 More information
9. Investment performance
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The table below shows the average annual total return of the variable
investment options. Average annual total return is the annual rate of growth
that would be necessary to achieve the ending value of a contribution invested
in the variable investment options for the periods shown.
The table takes into account all fees and charges under the contract including
the withdrawal charge and annual administrative charge, if applicable, but does
not reflect the charges designed to approximate certain taxes that may be
imposed on us, such as premium taxes in your state, or the annuity
administrative fee, if applicable.
The results shown under "Length of option period" are based on the actual
historical investment experience of each variable investment option since its
inception. The results shown under "Length of portfolio period" include some
periods when a variable investment option investing in the Portfolio had not
yet commenced operations. For those periods, we have adjusted the results of
the portfolios to reflect the charges under the contracts that would have
applied had the investment options been available. Since charges under the
contracts vary, we have assumed, for each charge, the highest that might apply.
For the "EQ/Alliance" portfolios (other than EQ/Alliance Premier Growth and
EQ/Alliance Technology), we have adjusted the results prior to October 1996,
when Class IB/B shares for these portfolios were not available, to reflect the
12b-1 fees currently imposed. The results shown for the EQ/Alliance Money
Market, EQ/Balanced, EQ/Alliance Common Stock and EQ/Aggressive Stock options
for periods before those options were operated as part of a unit investment
trust reflect the results of the separate accounts that preceded them. The
"Since portfolio inception" figures for these options are based on the date of
inception of the preceding separate accounts. We have adjusted these results to
reflect the fee and expense structure in effect for Separate Account A as a
unit investment trust. See "The reorganization" in the SAI for additional
information.
EQ Advisors Trust commenced operations on May 1, 1997. For periods prior to
October 18, 1999 the Alliance portfolios (other than EQ/Alliance Premier Growth
and EQ/Alliance Technology) were part of The Hudson River Trust. On October 18,
1999, these portfolios became corresponding portfolios of EQ Advisors Trust. In
each case, the performance shown is for the indicated EQ Advisors Trust
portfolio and any predecessors that it may have had.
AXA Premier VIP Trust commenced operations on December 31, 2001 and performance
information for these portfolios is not available as of the date of this
prospectus.
All rates of return presented are time-weighted and include reinvestment of
investment income, including interest and dividends.
THE PERFORMANCE INFORMATION SHOWN BELOW AND THE PERFORMANCE INFORMATION THAT WE
ADVERTISE REFLECTS PAST PERFORMANCE AND DOES NOT INDICATE HOW THE VARIABLE
INVESTMENT OPTIONS MAY PERFORM IN THE FUTURE. SUCH INFORMATION ALSO DOES NOT
REPRESENT THE RESULTS EARNED BY ANY PARTICULAR INVESTOR. YOUR RESULTS WILL
DIFFER.
Investment performance 65
TABLE
AVERAGE ANNUAL TOTAL RETURN UNDER A CONTRACT SURRENDERED ON DECEMBER 31, 2001:
- -------------------------------------------------------------------------------------------
LENGTH OF OPTION PERIOD
------------------------------------------------------
SINCE OPTION
VARIABLE INVESTMENT OPTIONS 1 YEAR 5 YEARS 10 YEARS INCEPTION+*
- -------------------------------------------------------------------------------------------
EQ/Aggressive Stock (30.05)% (7.09)% 1.01% 8.50%
- -------------------------------------------------------------------------------------------
EQ/Alliance Common Stock (16.56)% 6.39% 10.02% 12.35%
- -------------------------------------------------------------------------------------------
EQ/Alliance Global (25.44)% 0.24% -- 4.31%
- -------------------------------------------------------------------------------------------
EQ/Alliance Growth and Income (7.94)% 10.86% -- 11.46%
- -------------------------------------------------------------------------------------------
EQ/Alliance Growth Investors (18.32)% 3.77% -- 6.10%
- -------------------------------------------------------------------------------------------
EQ/Alliance Intermediate Government
Securities 0.87% 2.28% -- 2.76%
- -------------------------------------------------------------------------------------------
EQ/Alliance International (28.07)% (6.68)% -- (3.38)%
- -------------------------------------------------------------------------------------------
EQ/Alliance Money Market (3.16)% 0.93% 1.06% 3.60%
- -------------------------------------------------------------------------------------------
EQ/Alliance Premier Growth (29.09)% -- -- (17.40)%
- -------------------------------------------------------------------------------------------
EQ/Alliance Quality Bond 0.99% 2.88% -- 3.01%
- -------------------------------------------------------------------------------------------
EQ/Alliance Small Cap Growth (18.88)% -- -- 3.24%
- -------------------------------------------------------------------------------------------
EQ/Alliance Technology (29.54)% -- -- (30.86)%
- -------------------------------------------------------------------------------------------
EQ/AXP New Dimensions (21.21)% -- -- (27.36)%
- -------------------------------------------------------------------------------------------
EQ/AXP Strategy Aggressive (37.95)% -- -- (51.07)%
- -------------------------------------------------------------------------------------------
EQ/Balanced (8.47)% 5.36% 4.19% 7.21%
- -------------------------------------------------------------------------------------------
EQ/Bernstein Diversified Value (3.85)% -- -- (5.00)%
- -------------------------------------------------------------------------------------------
EQ/Calvert Socially Responsible (20.45)% -- -- (8.16)%
- -------------------------------------------------------------------------------------------
EQ/Capital Guardian International (26.22)% -- -- (3.20)%
- -------------------------------------------------------------------------------------------
EQ/Capital Guardian Research (8.62)% -- -- (0.07)%
- -------------------------------------------------------------------------------------------
EQ/Capital Guardian U.S. Equity (8.61)% -- -- (2.86)%
- -------------------------------------------------------------------------------------------
EQ/Emerging Markets Equity (11.55)% -- -- (14.41)%
- -------------------------------------------------------------------------------------------
EQ/Equity 500 Index (17.88)% 6.65% -- 11.65%
- -------------------------------------------------------------------------------------------
EQ/Evergreen Omega (22.60)% -- -- (14.65)%
- -------------------------------------------------------------------------------------------
EQ/FI Mid Cap (19.25)% -- -- (14.83)%
- -------------------------------------------------------------------------------------------
EQ/FI Small/Mid Cap Value (3.01)% -- -- (2.15)%
- -------------------------------------------------------------------------------------------
EQ/High Yield (5.86)% (4.31)% -- 1.41%
- -------------------------------------------------------------------------------------------
EQ/Janus Large Cap Growth (28.15)% -- -- (31.56)%
- -------------------------------------------------------------------------------------------
EQ/Lazard Small Cap Value 9.80% -- -- (3.50)%
- -------------------------------------------------------------------------------------------
EQ/Mercury Basic Value Equity (1.58)% -- -- 8.39%
- -------------------------------------------------------------------------------------------
EQ/MFS Emerging Growth Companies (38.50)% -- -- 3.99%
- -------------------------------------------------------------------------------------------
EQ/MFS Investors Trust (21.64)% -- -- (9.96)%
- -------------------------------------------------------------------------------------------
EQ/MFS Research (27.09)% -- -- 0.52%
- -------------------------------------------------------------------------------------------
EQ/Putnam Growth & Income Value (13.09)% -- -- 0.10%
- -------------------------------------------------------------------------------------------
EQ/Putnam International Equity (26.81)% -- -- (3.01)%
- -------------------------------------------------------------------------------------------
EQ/Putnam Voyager (29.55)% -- -- (3.12)%
- -------------------------------------------------------------------------------------------
- -------------------------------------------------------------------------------------------
LENGTH OF PORTFOLIO PERIOD
-----------------------------------------------------
SINCE
PORTFOLIO
VARIABLE INVESTMENT OPTIONS 3 YEARS 5 YEARS 10 YEARS INCEPTION+**
- -------------------------------------------------------------------------------------------
EQ/Aggressive Stock (12.33)% (7.09)% 1.01% 8.50%
- -------------------------------------------------------------------------------------------
EQ/Alliance Common Stock (5.46)% 6.39% 10.02% 9.32%
- -------------------------------------------------------------------------------------------
EQ/Alliance Global (7.60)% 0.24% 5.83% 5.87%
- -------------------------------------------------------------------------------------------
EQ/Alliance Growth and Income 4.28% 10.86% -- 10.57%
- -------------------------------------------------------------------------------------------
EQ/Alliance Growth Investors (3.10)% 3.77% 6.09% 9.43%
- -------------------------------------------------------------------------------------------
EQ/Alliance Intermediate Government
Securities 1.45% 2.28% 2.48% 3.23%
- -------------------------------------------------------------------------------------------
EQ/Alliance International (10.63)% (6.68)% -- (2.34)%
- -------------------------------------------------------------------------------------------
EQ/Alliance Money Market 0.73% 0.93% 1.06% 3.60%
- -------------------------------------------------------------------------------------------
EQ/Alliance Premier Growth -- -- -- (15.14)%
- -------------------------------------------------------------------------------------------
EQ/Alliance Quality Bond 1.48% 2.88% -- 2.36%
- -------------------------------------------------------------------------------------------
EQ/Alliance Small Cap Growth 4.04% -- -- 5.74%
- -------------------------------------------------------------------------------------------
EQ/Alliance Technology -- -- -- (28.24)%
- -------------------------------------------------------------------------------------------
EQ/AXP New Dimensions -- -- -- (27.36)%
- -------------------------------------------------------------------------------------------
EQ/AXP Strategy Aggressive -- -- -- (51.07)%
- -------------------------------------------------------------------------------------------
EQ/Balanced 0.21% 5.36% 4.19% 7.21%
- -------------------------------------------------------------------------------------------
EQ/Bernstein Diversified Value (2.71)% -- -- 1.52%
- -------------------------------------------------------------------------------------------
EQ/Calvert Socially Responsible -- -- -- (9.50)%
- -------------------------------------------------------------------------------------------
EQ/Capital Guardian International -- -- -- (8.30)%
- -------------------------------------------------------------------------------------------
EQ/Capital Guardian Research -- -- -- (0.58)%
- -------------------------------------------------------------------------------------------
EQ/Capital Guardian U.S. Equity -- -- -- (2.63)%
- -------------------------------------------------------------------------------------------
EQ/Emerging Markets Equity (0.63)% -- -- (14.41)%
- -------------------------------------------------------------------------------------------
EQ/Equity 500 Index (5.60)% 6.65% -- 11.10%
- -------------------------------------------------------------------------------------------
EQ/Evergreen Omega -- -- -- (11.16)%
- -------------------------------------------------------------------------------------------
EQ/FI Mid Cap -- -- -- (14.83)%
- -------------------------------------------------------------------------------------------
EQ/FI Small/Mid Cap Value (0.62)% -- -- (0.63)%
- -------------------------------------------------------------------------------------------
EQ/High Yield (7.94)% (4.31)% 4.08% 4.38%
- -------------------------------------------------------------------------------------------
EQ/Janus Large Cap Growth -- -- -- (31.56)%
- -------------------------------------------------------------------------------------------
EQ/Lazard Small Cap Value 8.32% -- -- 2.85%
- -------------------------------------------------------------------------------------------
EQ/Mercury Basic Value Equity 7.89% -- -- 10.03%
- -------------------------------------------------------------------------------------------
EQ/MFS Emerging Growth Companies (6.59)% -- -- 5.96%
- -------------------------------------------------------------------------------------------
EQ/MFS Investors Trust -- -- -- (7.37)%
- -------------------------------------------------------------------------------------------
EQ/MFS Research (7.21)% -- -- 2.00%
- -------------------------------------------------------------------------------------------
EQ/Putnam Growth & Income Value (4.83)% -- -- 1.26%
- -------------------------------------------------------------------------------------------
EQ/Putnam International Equity (0.94)% -- -- 4.19%
- -------------------------------------------------------------------------------------------
EQ/Putnam Voyager (10.97)% -- -- 2.91%
- -------------------------------------------------------------------------------------------
+ Unannualized (including Since Inception values if time since inception is
less than one year).
* The variable investment option inception dates are: EQ/Aggressive Stock and
EQ/Balanced (1/27/86); EQ/Alliance Money Market (7/31/81); EQ/Alliance
Common Stock (8/27/81); EQ/Equity 500 Index (6/1/94); EQ/Alliance Global,
EQ/Alliance Growth and Income, EQ/Alliance Growth Investors, EQ/Alliance
Quality Bond and EQ/High Yield (1/4/94); EQ/Alliance Intermediate
Government Securities (6/1/94); EQ/Alliance International (9/1/95);
EQ/Alliance Small Cap Growth, EQ/MFS Emerging Growth Companies, EQ/MFS
Research, EQ/Mercury Basic Value Equity, EQ/Putnam Growth & Income Value,
EQ/FI Small/Mid Cap Value (6/2/97); EQ/Emerging Markets Equity (8/20/97);
EQ/Evergreen Omega, EQ/MFS Investors Trust, EQ/Alliance Premier Growth,
EQ/Capital Guardian U.S. Equity, EQ/Capital Guardian International,
EQ/Capital Guardian Research, EQ/Bernstein Diversified Value, EQ/Lazard
Small Cap Value, EQ/Putnam International Equity, EQ/Putnam Voyager
(8/30/99); EQ/Calvert Socially Responsible (9/1/99); EQ/Alliance Technology
(5/22/00); EQ/Janus Large Cap Growth, EQ/FI Mid Cap, EQ/AXP New Dimensions
and EQ/AXP Strategy Aggressive (9/1/00); EQ/Marsico Focus (10/22/01); AXA
Premier VIP Large Cap Growth, AXA Premier VIP Large Cap Core Equity, AXA
Premier VIP Large Cap Value, AXA Premier VIP Small/Mid Cap Growth, AXA
Premier VIP Small/Mid Cap Value, AXA Premier VIP International Equity, AXA
Premier VIP Technology, AXA Premier VIP Health Care, AXA Premier VIP Core
Bond, EQ/International Equity Index, EQ/J.P. Morgan Core Bond and EQ/Small
Company Index (January 14, 2002). No performance information is provided for
portfolios and/or variable investment options with inception dates after
December 31, 2000.
** The inception dates for the portfolios underlying the Alliance variable
investment options shown in the tables are for portfolios of The Hudson
River Trust, the assets of which became assets of corresponding portfolios
of EQ Advisors Trust on 10/18/99. The portfolio inception dates are:
EQ/Aggressive Stock and EQ/Balanced (1/27/86); EQ/Alliance Common Stock
(1/13/76); EQ/Equity 500 Index (3/1/94); EQ/Alliance Global (8/27/87);
EQ/Alliance Growth and Income (10/1/93); EQ/Alliance Growth Investors
(10/2/89); EQ/ High Yield (1/2/87); EQ/Alliance Intermediate Government
Securities (4/1/91); EQ/Alliance International (4/3/95); EQ/Alliance Money
Market (7/13/81); EQ/Alliance Quality Bond (10/1/93); EQ/Alliance Small Cap
Growth, EQ/MFS Research, EQ/Mercury Basic Value Equity, EQ/Putnam Growth &
Income Value, EQ/FI Small/Mid Cap Value, EQ/Putnam International Equity and
66 Investment performance
EQ/Putnam Voyager (5/1/97); EQ/Emerging Markets Equity (8/20/97);
EQ/Evergreen Omega and EQ/MFS Investors Trust (1/1/99); EQ/Bernstein
Diversified Value, EQ/International Equity Index, EQ/J.P. Morgan Core Bond,
EQ/Lazard Small Cap Value and EQ/Small Company Index (1/1/98); EQ/MFS
Emerging Growth Companies (5/1/97); EQ/Alliance Premier Growth, EQ/Capital
Guardian International, EQ/Capital Guardian Research, and EQ/Capital
Guardian U.S. Equity (5/1/99); EQ/Calvert Socially Responsible (9/1/ 99);
EQ/Alliance Technology (5/1/00); EQ/Janus Large Cap Growth, EQ/FI Mid Cap,
EQ/AXP New Dimensions and EQ/AXP Strategy Aggressive (9/1/00); EQ/Marsico
Focus (August 31, 2001); AXA Premier VIP Large Cap Growth, AXA Premier VIP
Large Cap Core Equity, AXA Premier VIP Large Cap Value, AXA Premier VIP
Small/Mid Cap Growth, AXA Premier VIP Small/Mid Cap Value, AXA Premier VIP
International Equity, AXA Premier VIP Healthcare, AXA Premier VIP Core Bond
and AXA Premier VIP Technology (December 31, 2001). No performance
information is provided for portfolios and/or variable investment options
with inception dates after December 31, 2000.
Investment performance 67
COMMUNICATING PERFORMANCE DATA
In reports or other communications to contract owners or in advertising
material, we may describe general economic and market conditions affecting our
variable investment options and the portfolios, and may compare the performance
or ranking of those options and the portfolios with:
o those of other insurance company separate accounts or mutual funds included
in the rankings prepared by Lipper Analytical Services, Inc., Morningstar,
Inc., VARDS, or similar investment services that monitor the performance
of insurance company separate accounts or mutual funds;
o other appropriate indices of investment securities and averages for peer
universes of mutual funds; or
o data developed by us derived from such indices or averages.
We also may furnish to present or prospective contract owners advertisements or
other communications that include evaluations of a variable investment option
or portfolio by nationally recognized financial publications. Examples of such
publications are:
- --------------------------------------------------------------------------------
Barron's Investment Management Weekly
Morningstar's Variable Annuity Money Management Letter
Sourcebook Investment Dealers Digest
Business Week National Underwriter
Forbes Pension & Investments
Fortune USA Today
Institutional Investor Investor's Business Daily
Money The New York Times
Kiplinger's Personal Finance The Wall Street Journal
Financial Planning The Los Angeles Times
Investment Adviser The Chicago Tribune
- --------------------------------------------------------------------------------
From time to time, we may also advertise different measurements of the
investment performance of the variable investment options and/or the
portfolios, including the measurements that compare the performance to market
indices that serve as benchmarks. Market indices are not subject to any charges
for investment advisory fees, brokerage commission or other operating expenses
typically associated with a managed portfolio. Also, they do not reflect other
contract charges such as the mortality and expense risks charge, administrative
charge and distribution charge or any withdrawal or optional benefit charge.
Comparisons with these benchmarks, therefore, may be of limited use. We use
them because they are widely known and may help you to understand the universe
of securities from which each portfolio is likely to select its holdings.
Lipper compiles performance data for peer universes of funds with similar
investment objectives in its Lipper Survey. Morningstar, Inc. compiles similar
data in the Morningstar Variable Annuity/Life Report (Morningstar Report).
The Lipper Survey records performance data as reported to it by over 800 mutual
funds underlying variable annuity and life insurance products. It divides these
actively managed portfolios into 25 categories by portfolio objectives.
According to Lipper, the data are presented net of investment management fees,
direct operating expenses and asset-based charges applicable under annuity
contracts. Lipper data provide a more accurate picture than market benchmarks
of the EQUI-VEST(R) performance relative to other variable annuity products.
The Lipper Survey contains two different universes, which reflect different
types of fees in performance data:
o the "separate account" universe reports performance data net of investment
management fees, direct operating expenses and asset-based charges
applicable under variable life insurance and annuity contracts; and
o the "mutual fund" universe reports performance net only of investment
management fees and direct operating expenses, and therefore reflects only
charges that relate to the underlying mutual fund.
The Morningstar Variable Annuity/Life Report consists of nearly 700 variable
life and annuity funds, all of which report their data net of investment
management fees, direct operating expenses and separate account level charges.
VARDS is a monthly reporting service that monitors approximately 2,500 variable
life and variable annuity funds on performance and account information.
YIELD INFORMATION
Current yield for the EQ/Alliance Money Market option will be based on net
changes in a hypothetical investment over a given seven-day period, exclusive
of capital changes, and then "annualized" (assuming that the same seven-day
result would occur each week for 52 weeks). Current yield for the EQ/Alliance
Quality Bond and EQ/High Yield options will be based on net changes in a
hypothetical investment over a given 30-day period, exclusive of capital
changes, and then "annualized" (assuming that the same 30-day result would
occur each month for 12 months).
"Effective yield" is calculated in a similar manner, but when annualized, any
income earned by the investment is assumed to be reinvested. The "effective
yield" will be slightly higher than the "current yield" because any earnings
are compounded weekly for the EQ/Alliance Money Market option. The current
yields and effective yields assume the deduction of all current contract
charges and expenses other than the annual administrative charge, withdrawal
charge, and any charges for state premium and other applicable taxes. For more
information, see "EQ/Alliance Money Market option yield information" and "Other
yield information" in the SAI.
68 Investment performance
10. Incorporation of certain documents by reference
- --------------------------------------------------------------------------------
Equitable Life's annual report on Form 10-K for the year ended December 31,
2001, is considered to be a part of this prospectus because it is incorporated
by reference.
After the date of this prospectus and before we terminate the offering of the
securities under this prospectus, all documents or reports we file with the SEC
under the Securities Exchange Act of 1934 ("Exchange Act") will be considered
to become part of this prospectus because they are incorporated by reference.
Any statement contained in a document that is or becomes part of this
prospectus, will be considered changed or replaced for purposes of this
prospectus if a statement contained in this prospectus changes or is replaced.
Any statement that is considered to be a part of this prospectus because of its
incorporation, will be considered changed or replaced for the purpose of this
prospectus if a statement contained in any other subsequently filed document
that is considered to be part of this prospectus changes or replaces that
statement. After that, only the statement that is changed or replaced will be
considered to be part of this prospectus.
We file our Exchange Act documents and reports, including our annual report on
Form 10-K and quarterly reports on Form 10-Q, electronically according to EDGAR
under CIK No. 0000727920. The SEC maintains a Web site that contains reports,
proxy and information statements and other information regarding registrants
that file electronically with the SEC. The address of the site is
http://www.sec.gov.
Upon written or oral request, we will provide, free of charge, to each person
to whom this prospectus is delivered a copy of any or all of the documents
considered to be part of this prospectus because they are incorporated herein.
This does not include exhibits not specifically incorporated by reference into
the text of such documents. Requests for documents should be directed to The
Equitable Life Assurance Society of the United States, 1290 Avenue of the
Americas, New York, New York 10104. Attention: Corporate Secretary (telephone:
(212) 554-1234).
Incorporation of certain documents by reference 69
(This page intentionally left blank)
Appendix I: Condensed financial information
- --------------------------------------------------------------------------------
The following tables show the accumulation unit values and the number of
outstanding units for each variable investment option under each contract
series at the last business day of the periods shown. The unit values and
number of units outstanding are for contracts offered under Separate Account A
with the same asset based charge. The information presented is shown for the
past ten years, or from the first year the particular contracts were offered,
if less than ten years ago.
SERIES 300 AND 400 CONTRACTS
UNIT VALUES AND NUMBER OF UNITS OUTSTANDING AT YEAR END FOR EACH VARIABLE
INVESTMENT OPTION, EXCEPT FOR THOSE OPTIONS OFFERED FOR THE FIRST TIME ON OR
AFTER DECEMBER 31, 2001
- ----------------------------------------------------------------------------------------
FOR THE YEARS ENDING DECEMBER 31,
------------------------------------------------
1994 1995 1996 1997
- ----------------------------------------------------------------------------------------
EQ/Aggressive Stock
Unit value $ 95.45 $ 123.95 $ 149.41 $ 163.33
Number of units outstanding (000's) 664 1,310 2,468 3,226
EQ/Alliance Common Stock
Unit value $ 97.03 126.78 $ 155.42 $ 198.12
Number of units outstanding (000's) 948 1,989 3,457 4,765
EQ/Alliance Global
Unit value $104.12 $ 122.06 $ 138.00 $ 151.87
Number of units outstanding (000's) 1,305 2,121 2,995 3,369
EQ/Alliance Growth and Income
Unit value $ 98.86 $ 121.02 $ 143.37 $ 179.30
Number of units outstanding (000's) 210 498 975 1,800
EQ/Alliance Growth Investors
Unit value $ 96.31 $ 120.08 $ 133.40 $ 153.69
Number of units outstanding (000's) 1,023 2,113 3,325 3,704
EQ/Alliance Intermediate Government
Securities
Unit value $ 98.19 $ 109.80 $ 112.40 $ 118.98
Number of units outstanding (000's) 32 89 146 202
EQ/Alliance International
Unit value -- $ 104.15 $ 112.83 $ 107.92
Number of units outstanding (000's) -- 141 763 968
EQ/Alliance Money Market
Unit value $102.61 $ 107.04 $ 111.21 $ 115.66
Number of units outstanding (000's) 63 81 165 146
EQ/Alliance Premier Growth
Unit value -- -- -- --
Number of units outstanding (000's) -- -- -- --
EQ/Alliance Quality Bond
Unit value $ 93.87 $ 108.38 $ 112.65 $ 121.30
Number of units outstanding (000's) 53 135 196 283
EQ/Alliance Small Cap Growth
Unit value -- -- -- $ 125.55
Number of units outstanding (000's) -- -- -- 488
EQ/Alliance Technology
Unit value -- -- -- --
Number of units outstanding (000's) -- -- -- --
EQ/AXP New Dimensions
Unit value -- -- -- --
Number of units outstanding (000's) -- -- -- --
- -----------------------------------------------------------------------------------------
FOR THE YEARS ENDING DECEMBER 31,
-------------------------------------------------
1998 1999 2000 2001
- -----------------------------------------------------------------------------------------
EQ/Aggressive Stock
Unit value $ 161.59 $ 189.44 $ 162.34 $ 120.13
Number of units outstanding (000's) 3,342 2,980 2,607 2,242
EQ/Alliance Common Stock
Unit value $ 252.88 $ 312.31 $ 264.88 $ 233.80
Number of units outstanding (000's) 5,808 6,502 6,233 5,579
EQ/Alliance Global
Unit value $ 182.50 $ 249.93 $ 200.17 $ 157.88
Number of units outstanding (000's) 3,395 3,509 3,712 3,331
EQ/Alliance Growth and Income
Unit value $ 213.81 $ 250.31 $ 269.09 $ 262.05
Number of units outstanding (000's) 2,475 3,095 3,352 3,789
EQ/Alliance Growth Investors
Unit value $ 180.63 $ 225.59 $ 207.65 $ 179.41
Number of units outstanding (000's) 3,962 4,231 4,354 3,967
EQ/Alliance Intermediate Government
Securities
Unit value $ 126.48 $ 124.96 $ 134.60 $ 143.62
Number of units outstanding (000's) 314 360 309 587
EQ/Alliance International
Unit value $ 117.72 $ 160.04 $ 121.54 $ 92.48
Number of units outstanding (000's) 971 926 1,028 945
EQ/Alliance Money Market
Unit value $ 120.19 $ 124.47 $ 130.47 $ 133.66
Number of units outstanding (000's) 262 360 297 395
EQ/Alliance Premier Growth
Unit value -- $ 116.36 $ 93.70 $ 70.28
Number of units outstanding (000's) -- 887 2,596 2,788
EQ/Alliance Quality Bond
Unit value $ 130.07 $ 125.76 $ 138.33 $ 147.79
Number of units outstanding (000's) 557 622 566 899
EQ/Alliance Small Cap Growth
Unit value $ 118.57 $ 149.64 $ 168.29 $ 144.40
Number of units outstanding (000's) 1,101 976 1,895 1,988
EQ/Alliance Technology
Unit value -- -- $ 66.10 $ 49.27
Number of units outstanding (000's) -- -- 1,313 1,757
EQ/AXP New Dimensions
Unit value -- -- $ 82.87 $ 69.07
Number of units outstanding (000's) -- -- 41 105
- -----------------------------------------------------------------------------------------
Appendix I: Condensed financial information A-1
SERIES 300 AND 400 CONTRACTS
UNIT VALUES AND NUMBER OF UNITS OUTSTANDING AT YEAR END FOR EACH VARIABLE
INVESTMENT OPTION, EXCEPT FOR THOSE OPTIONS OFFERED FOR THE FIRST TIME ON OR
AFTER DECEMBER 31, 2001 (CONTINUED)
- ----------------------------------------------------------------------------
FOR THE YEARS ENDING DECEMBER 31,
------------------------------------
1994 1995 1996
- ----------------------------------------------------------------------------
EQ/AXP Strategy Aggressive
Unit value -- -- --
Number of units outstanding (000's) -- -- --
EQ/Balanced
Unit value $ 91.64 $ 108.26 $ 119.26
Number of units outstanding (000's) 289 386 548
EQ/Bernstein Diversified Value
Unit value -- -- --
Number of units outstanding (000's) -- -- --
EQ/Calvert Socially Responsible
Unit value -- -- --
Number of units outstanding (000's) -- -- --
EQ/Capital Guardian Research
Unit value -- -- --
Number of units outstanding (000's) -- -- --
EQ/Capital Guardian U.S. Equity
Unit value -- -- --
Number of units outstanding (000's) -- -- --
EQ/Emerging Markets Equity
Unit value -- -- --
Number of units outstanding (000's) -- -- --
EQ/Equity 500 Index
Unit value $ 100.95 $ 135.94 $ 164.12
Number of units outstanding (000's) 47 592 1,486
EQ/Evergreen Omega
Unit value -- -- --
Number of units outstanding (000's) -- -- --
EQ/FI Mid Cap
Unit value -- -- --
Number of units outstanding (000's) -- -- --
EQ/FI Small/Mid Cap Value
Unit value -- -- --
Number of units outstanding (000's) -- -- --
EQ/High Yield
Unit value $ 95.88 $ 113.44 $ 137.53
Number of units outstanding (000's) 99 209 444
EQ/Janus Large Cap Growth
Unit value -- -- --
Number of units outstanding (000's) -- -- --
EQ/Marsico Focus
Unit value -- -- --
Number of units outstanding (000's) -- -- --
EQ/Mercury Basic Value Equity
Unit value -- -- --
Number of units outstanding (000's) -- -- --
EQ/MFS Emerging Growth Companies
Unit value -- -- --
Number of units outstanding (000's) -- -- --
- -----------------------------------------------------------------------------------------------------
FOR THE YEARS ENDING DECEMBER 31,
-------------------------------------------------------------
1997 1998 1999 2000 2001
- ------------------------------------------------------------------------------------------------------
EQ/AXP Strategy Aggressive
Unit value -- -- -- $ 62.12 $ 40.77
Number of units outstanding (000's) -- -- -- 54 113
EQ/Balanced
Unit value $ 135.29 $ 157.63 $ 183.18 $ 178.32 $ 172.66
Number of units outstanding (000's) 655 752 854 846 1,334
EQ/Bernstein Diversified Value
Unit value -- -- -- -- $ 94.39
Number of units outstanding (000's) -- -- -- -- 1,544
EQ/Calvert Socially Responsible
Unit value -- -- $ 107.58 $ 103.06 $ 86.73
Number of units outstanding (000's) -- -- 4 15 33
EQ/Capital Guardian Research
Unit value -- -- $ 106.78 $ 111.59 $ 107.86
Number of units outstanding (000's) -- -- 8 44 95
EQ/Capital Guardian U.S. Equity
Unit value -- -- $ 101.64 $ 103.88 $ 100.43
Number of units outstanding (000's) -- -- 13 34 96
EQ/Emerging Markets Equity
Unit value $ 79.41 $ 57.18 $ 110.43 $ 65.32 $ 61.12
Number of units outstanding (000's) 109 217 590 926 850
EQ/Equity 500 Index
Unit value $ 214.66 $ 271.24 $ 322.15 $ 287.40 $ 249.66
Number of units outstanding (000's) 2,686 3,805 4,579 4,346 4,083
EQ/Evergreen Omega
Unit value -- -- $ 106.57 $ 92.84 $ 76.01
Number of units outstanding (000's) -- -- 5 18 33
EQ/FI Mid Cap
Unit value -- -- -- $ 99.98 $ 85.41
Number of units outstanding (000's) -- -- -- 86 420
EQ/FI Small/Mid Cap Value
Unit value $ 118.06 $ 104.82 $ 105.28 $ 109.21 $ 112.05
Number of units outstanding (000's) 577 859 721 628 1,238
EQ/High Yield
Unit value $ 160.74 $ 150.42 $ 143.43 $ 129.28 $ 128.74
Number of units outstanding (000's) 831 1,164 998 800 770
EQ/Janus Large Cap Growth
Unit value -- -- -- $ 83.95 $ 63.80
Number of units outstanding (000's) -- -- -- 165 464
EQ/Marsico Focus
Unit value -- -- -- -- $ 105.89
Number of units outstanding (000's) -- -- -- -- --
EQ/Mercury Basic Value Equity
Unit value $ 115.97 $ 127.67 $ 149.82 $ 165.27 172.07
Number of units outstanding (000's) 145 444 617 634 1,044
EQ/MFS Emerging Growth Companies
Unit value $ 121.34 $ 161.04 $ 275.93 $ 220.97 $ 143.76
Number of units outstanding (000's) 256 1,090 2,427 3,720 3,422
- -----------------------------------------------------------------------------------------------------
A-2 Appendix I: Condensed financial information
SERIES 300 AND 400 CONTRACTS
UNIT VALUES AND NUMBER OF UNITS OUTSTANDING AT YEAR END FOR EACH VARIABLE
INVESTMENT OPTION, EXCEPT FOR THOSE OPTIONS OFFERED FOR THE FIRST TIME ON OR
AFTER DECEMBER 31, 2001 (CONTINUED)
- --------------------------------------------------------------------------------------------------------------------------------
FOR THE YEARS ENDING DECEMBER 31,
----------------------------------------------------------------------------------------
1994 1995 1996 1997 1998 1999 2000 2001
- --------------------------------------------------------------------------------------------------------------------------------
EQ/MFS Investors Trust
Unit value -- -- -- -- -- $ 104.48 $ 102.37 $ 84.85
Number of units outstanding (000's) -- -- -- -- -- 18 68 87
EQ/MFS Research
Unit value -- -- -- $ 115.01 $ 140.83 $ 171.06 $ 159.89 $ 123.32
Number of units outstanding (000's) -- -- -- 236 720 959 1,258 1,124
EQ/Putnam Growth & Income Value
Unit value -- -- -- $ 115.17 $ 128.20 $ 124.76 $ 131.45 $ 120.85
Number of units outstanding (000's) -- -- -- 250 581 648 521 532
EQ/T. Rowe Price International Stock
Unit value -- -- -- $ 97.61 $ 109.49 $ 142.46 $ 114.30 $ 88.15
Number of units outstanding (000's) -- -- -- 387 671 765 871 896
- ---------------------------------------------------------------------------------------------------------------------------------
Appendix I: Condensed financial information A-3
SERIES 100 AND 200 CONTRACTS
UNIT VALUES AND NUMBER OF UNITS OUTSTANDING FOR EACH VARIABLE INVESTMENT OPTION,
EXCEPT FOR THOSE OPTIONS OFFERED FOR THE FIRST TIME ON OR AFTER
DECEMBER 31, 2001
- -------------------------------------------------------------------------------------------------------------------
FOR THE YEARS ENDING DECEMBER 31,
------------------------------------------------------------
1992 1993 1994 1995 1996
- -------------------------------------------------------------------------------------------------------------------
EQ/Aggressive Stock
Unit value $ 48.30 $ 55.68 $ 52.88 $ 68.73 $ 82.91
Number of units outstanding (000's) 17,986 21,496 24,787 25,821 27,945
EQ/Alliance Common Stock
Unit value $ 104.63 $ 128.81 $ 124.32 $ 162.42 $ 199.05
Number of units outstanding (000's) 11,841 13,917 15,749 16,292 16,933
EQ/Alliance Global
Unit value -- -- $ 104.12 $ 122.06 $ 138.00
Number of units outstanding (000's) -- -- 1,305 2,121 2,995
EQ/Alliance Growth and Income
Unit value -- -- $ 98.86 $ 121.02 $ 143.37
Number of units outstanding (000's) -- -- 210 498 975
EQ/Alliance Growth Investors
Unit value -- -- $ 96.31 $ 120.08 $ 133.40
Number of units outstanding (000's) -- -- 1,023 2,113 3,325
EQ/Alliance Intermediate Government Securities
Unit value -- -- $ 98.19 $ 109.80 $ 112.40
Number of units outstanding (000's) -- -- 32 89 146
EQ/Alliance International
Unit value -- -- -- $ 104.15 $ 112.83
Number of units outstanding (000's) -- -- -- 141 763
EQ/Alliance Money Market
Unit value $ 25.01 $ 25.41 $ 26.08 $ 27.22 $ 28.28
Number of units outstanding (000's) 1,201 1,065 1,000 1,021 1,013
EQ/Alliance Premier Growth
Unit value -- -- -- -- --
Number of units outstanding (000's) -- -- -- -- --
EQ/Alliance Quality Bond
Unit value -- -- $ 93.87 $ 108.38 $ 112.65
Number of units outstanding (000's) -- -- 53 135 196
EQ/Alliance Small Cap Growth
Unit value -- -- -- -- --
Number of units outstanding (000's) -- -- -- -- --
EQ/Alliance Technology
Unit value -- -- -- -- --
Number of units outstanding (000's) -- -- -- -- --
EQ/AXP New Dimensions
Unit value -- -- -- -- --
Number of units outstanding (000's) -- -- -- -- --
EQ/AXP Strategy Aggressive
Unit value -- -- -- -- --
Number of units outstanding (000's) -- -- -- -- --
EQ/Balanced
Unit Value $ 26.04 $ 28.85 $ 26.18 $ 30.92 $ 34.06
Number of units outstanding (000's) 25,975 31,259 32,664 30,212 28,319
EQ/Bernstein Diversified Value
Unit Value -- -- -- -- --
Number of units outstanding (000's) -- -- -- -- --
EQ/Calvert Socially Responsible
Unit value -- -- -- -- --
Number of units outstanding (000's) -- -- -- -- --
EQ/Capital Guardian Research
Unit value -- -- -- -- --
Number of units outstanding (000's) -- -- -- -- --
EQ/Capital Guardian U.S. Equity
Unit value -- -- -- -- --
Number of units outstanding (000's) -- -- -- -- --
- --------------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------------
FOR THE YEARS ENDING DECEMBER 31,
---------------------------------------------------------------
1997 1998 1999 2000 2001
- --------------------------------------------------------------------------------------------------------------------------
EQ/Aggressive Stock
Unit value $ 90.75 $ 89.92 $ 105.59 $ 90.70 $ 67.13
Number of units outstanding (000's) 28,030 25,634 20,946 18,138 16,058
EQ/Alliance Common Stock
Unit value $ 253.68 $ 323.75 $ 399.74 $ 339.28 $ 299.82
Number of units outstanding (000's) 17,386 17,231 16,705 15,685 14,197
EQ/Alliance Global
Unit value $ 151.87 $ 182.50 $ 249.93 $ 200.17 $ 157.88
Number of units outstanding (000's) 3,369 3,395 3,509 3,712 3,331
EQ/Alliance Growth and Income
Unit value $ 179.30 $ 213.81 $ 250.31 $ 269.09 $ 262.05
Number of units outstanding (000's) 1,800 2,475 3,095 3,352 3,789
EQ/Alliance Growth Investors
Unit value $ 153.69 $ 180.63 $ 225.59 $ 207.65 $ 179.41
Number of units outstanding (000's) 3,704 3,962 4,231 4,354 3,967
EQ/Alliance Intermediate Government Securities
Unit value $ 118.98 $ 126.48 $ 124.96 $ 134.60 $ 143.62
Number of units outstanding (000's) 202 314 360 309 587
EQ/Alliance International
Unit value $ 107.92 $ 117.72 $ 160.04 $ 121.54 $ 92.48
Number of units outstanding (000's) 968 971 926 1,028 945
EQ/Alliance Money Market
Unit value $ 29.41 $ 30.55 $ 31.63 $ 33.15 $ 33.96
Number of units outstanding (000's) 973 1,261 1,516 1,458 1,796
EQ/Alliance Premier Growth
Unit value -- -- $ 116.36 $ 93.70 $ 70.28
Number of units outstanding (000's) -- -- 887 2,596 2,788
EQ/Alliance Quality Bond
Unit value $ 121.30 $ 130.07 $ 125.76 $ 138.33 $ 147.79
Number of units outstanding (000's) 283 557 622 566 899
EQ/Alliance Small Cap Growth
Unit value $ 125.55 $ 118.57 $ 149.64 $ 168.29 $ 144.40
Number of units outstanding (000's) 488 1,101 976 1,895 1,988
EQ/Alliance Technology
Unit value -- -- -- $ 66.10 $ 49.27
Number of units outstanding (000's) -- -- -- 1,313 1,757
EQ/AXP New Dimensions
Unit value -- -- -- $ 82.87 $ 69.07
Number of units outstanding (000's) -- -- -- 41 105
EQ/AXP Strategy Aggressive
Unit value -- -- -- $ 62.12 $ 40.77
Number of units outstanding (000's) -- -- -- 54 113
EQ/Balanced
Unit Value $ 38.66 $ 45.07 $ 52.39 $ 51.10 $ 49.61
Number of units outstanding (000's) 26,036 24,361 22,434 20,413 19,822
EQ/Bernstein Diversified Value
Unit Value -- -- -- -- $ 94.39
Number of units outstanding (000's) -- -- -- -- 1,544
EQ/Calvert Socially Responsible
Unit value -- -- $ 107.58 $ 103.06 $ 86.73
Number of units outstanding (000's) -- -- 4 15 33
EQ/Capital Guardian Research
Unit value -- -- $ 106.78 $ 111.59 $ 107.86
Number of units outstanding (000's) -- -- 8 44 95
EQ/Capital Guardian U.S. Equity
Unit value -- -- $ 101.64 $ 103.88 $ 100.43
Number of units outstanding (000's) -- -- 13 34 96
- --------------------------------------------------------------------------------------------------------------------------
A-4 Appendix I: Condensed financial information
SERIES 100 AND 200 CONTRACTS
UNIT VALUES AND NUMBER OF UNITS OUTSTANDING FOR EACH VARIABLE INVESTMENT OPTION,
EXCEPT FOR THOSE OPTIONS OFFERED FOR THE FIRST TIME ON OR AFTER
DECEMBER 31, 2001 (CONTINUED)
- ------------------------------------------------------------------------------------------------------------------------
FOR THE YEARS ENDING DECEMBER 31,
------------------------------------------------------
1992 1993 1994 1995 1996
- ------------------------------------------------------------------------------------------------------------------------
EQ/Emerging Markets Equity
Unit value -- -- -- -- --
Number of units outstanding (000's) -- -- -- -- --
EQ/Equity 500 Index
Unit value -- -- $ 100.95 $ 135.94 $ 164.12
Number of units outstanding (000's) -- -- 47 592 1,486
EQ/Evergreen Omega
Unit value -- -- -- -- --
Number of units outstanding (000's) -- -- -- -- --
EQ/FI Mid Cap
Unit value -- -- -- -- --
Number of units outstanding (000's) -- -- -- -- --
EQ/FI Small/Mid Cap Value
Unit value -- -- -- -- --
Number of units outstanding (000's) -- -- -- -- --
EQ/High Yield
Unit value -- -- $ 95.88 $ 113.44 $ 137.53
Number of units outstanding (000's) -- -- 99 209 444
EQ/Janus Large Cap Growth
Unit value -- -- -- -- --
Number of units outstanding (000's) -- -- -- -- --
EQ/Marsico Focus
Unit value -- -- -- -- --
Number of units outstanding (000's)
EQ/Mercury Basic Value Equity
Unit value -- -- -- -- --
Number of units outstanding (000's) -- -- -- -- --
EQ/MFS Emerging Growth Companies
Unit value -- -- -- -- --
Number of units outstanding (000's) -- -- -- -- --
EQ/MFS Investors Trust
Unit value -- -- -- -- --
Number of units outstanding (000's) -- -- -- -- --
EQ/MFS Research
Unit value -- -- -- -- --
Number of units outstanding (000's) -- -- -- -- --
EQ/Putnam Growth and Income Value
Unit Value
Number of units outstanding (000's)
EQ/T. Rowe Price International Stock
Unit value -- -- -- -- --
Number of units outstanding (000's) -- -- -- -- --
- ------------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------
FOR THE YEARS ENDING DECEMBER 31,
-----------------------------------------------------------
1997 1998 1999 2000 2001
- --------------------------------------------------------------------------------------------------------------------
EQ/Emerging Markets Equity
Unit value $ 79.41 $ 57.18 $ 110.43 $ 65.32 $ 61.12
Number of units outstanding (000's) 109 217 590 926 850
EQ/Equity 500 Index
Unit value $ 214.66 $ 271.24 $ 322.15 $ 287.40 $ 249.66
Number of units outstanding (000's) 2,686 3,805 4,579 4,346 4,083
EQ/Evergreen Omega
Unit value -- -- $ 106.57 $ 92.84 $ 76.01
Number of units outstanding (000's) -- -- 5 18 33
EQ/FI Mid Cap
Unit value -- -- -- $ 99.98 $ 85.41
Number of units outstanding (000's) -- -- -- 86 420
EQ/FI Small/Mid Cap Value
Unit value $ 118.06 $ 104.82 $ 105.28 $ 109.21 $ 112.05
Number of units outstanding (000's) 577 859 721 628 1,238
EQ/High Yield
Unit value $ 160.74 $ 150.42 $ 143.43 $ 129.28 $ 128.74
Number of units outstanding (000's) 831 1,164 998 800 770
EQ/Janus Large Cap Growth
Unit value -- -- -- $ 83.95 $ 63.90
Number of units outstanding (000's) -- -- -- 165 464
EQ/Marsico Focus
Unit value -- -- -- -- $ 105.94
Number of units outstanding (000's) --
EQ/Mercury Basic Value Equity
Unit value $ 115.97 $ 127.97 $ 149.82 $ 165.27 $ 172.07
Number of units outstanding (000's) 145 444 617 634 1,044
EQ/MFS Emerging Growth Companies
Unit value $ 121.34 $ 161.04 $ 275.93 $ 220.97 $ 143.76
Number of units outstanding (000's) 256 1,090 2,427 3,720 3,422
EQ/MFS Investors Trust
Unit value -- -- $ 104.48 $ 102.37 $ 84.85
Number of units outstanding (000's) -- -- 18 68 87
EQ/MFS Research
Unit value $ 115.01 $ 140.83 $ 171.06 $ 159.89 $ 123.32
Number of units outstanding (000's) 236 720 959 1,258 1,124
EQ/Putnam Growth and Income Value
Unit Value $ 115.17 $ 128.80 $ 124.26 $ 131.45 $ 120.85
Number of units outstanding (000's) 250 581 648 521 532
EQ/T. Rowe Price International Stock
Unit value $ 97.61 $ 109.49 $ 142.46 $ 114.30 $ 88.15
Number of units outstanding (000's) 387 671 765 871 896
- --------------------------------------------------------------------------------------------------------------------
Appendix I: Condensed financial information A-5
(This page intentionally left blank)
Appendix II: Original contracts
- --------------------------------------------------------------------------------
Original contracts are EQUI-VEST(R) contracts under which the contract owner
has not elected to add any new variable investment options. Therefore, only the
EQ/Alliance Money Market, EQ/Balanced, EQ/Alliance Common Stock and
EQ/Aggressive Stock variable investment options are available.
SELECTING YOUR INVESTMENT METHOD. If you own an original contract, only the
guaranteed interest option and the EQ/Alliance Money Market, EQ/Balanced,
EQ/Alliance Common Stock and EQ/Aggressive Stock options are available. In most
cases, you may request that we add additional variable investment options to
your original contract. We reserve the right to deny your request.
TRANSFERRING YOUR ACCOUNT VALUE. If you own an original contract, including
original contract owners who elect to amend their contract by selecting maximum
transfer flexibility, the EQ/Alliance Money Market option is always available.
However, we will not permit transfers into the EQ/Alliance Money Market option
from any other investment option. There will not be any other transfer
limitations under your original contract.
Appendix II: Original contracts B-1
(This page intentionally left blank)
Appendix III: Market value adjustment example
- --------------------------------------------------------------------------------
The example below shows how the market value adjustment would be determined and
how it would be applied to a withdrawal, assuming that $100,000 had been
invested on June 14, 2003 to a fixed maturity option with a maturity date of
June 15, 2012 (i.e., nine* years later) at a rate to maturity of 7.00%,
resulting in a maturity value at the maturity date of $183,846. We further
assume that a withdrawal of $50,000 is made four years later, on June 15, 2007.
- --------------------------------------------------------------------------------
HYPOTHETICAL ASSUMED
RATE TO MATURITY ON
JUNE 15, 2007
------------------------
5.00% 9.00%
- --------------------------------------------------------------------------------
AS OF JUNE 15, 2007 (BEFORE WITHDRAWAL)
- --------------------------------------------------------------------------------
(1) Market adjusted amount $144,048 $ 119,487
(2) Fixed maturity amount $131,080 $ 131,080
(3) Market value adjustment: (1) - (2) $ 12,968 $ (11,593)
- --------------------------------------------------------------------------------
ON JUNE 15, 2007 (AFTER WITHDRAWAL)
- --------------------------------------------------------------------------------
(4) Portion of market value adjustment associated
with withdrawal:
(3) x [$50,000/(1)] $ 4,501 $ (4,851)
(5) Reduction in fixed maturity amount: [$50,000 - (4)] $ 45,499 $ 54,851
(6) Fixed maturity amount: (2) - (5) $ 85,581 $ 76,229
(7) Maturity value $120,032 $ 106,915
(8) Market adjusted amount of (7) $ 94,048 $ 69,487
- --------------------------------------------------------------------------------
You should note that under this example if a withdrawal is made when rates have
increased from 7.00% to 9.00% (right column), a negative market value
adjustment is realized. On the other hand, if a withdrawal is made when rates
have decreased from 7.00% to 5.00% (left column), a positive market value
adjustment is realized.
*In Oregon, seven is the maximum maturity year.
Appendix III: Market value adjustment example C-1
(This page intentionally left blank)
Statement of additional information
- --------------------------------------------------------------------------------
TABLE OF CONTENTS
Page
Unit Values 2
Calculation of annuity payments 2
The reorganization 3
Custodian and independent accountants 3
EQ/Alliance Money Market option yield information 4
Other yield information 5
Distribution of the Contracts 5
Financial statements 5
HOW TO OBTAIN AN EQUI-VEST(R) STATEMENT OF ADDITIONAL INFORMATION FOR SEPARATE
ACCOUNT A
Call 1-800-628-6673 or send this request form to:
EQUI-VEST(R)
Employer Sponsored Programs
Processing Office
The Equitable Life
P.O. Box 2996
New York, NY 10116-2996
- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
Please send me an EQUI-VEST(R) Statement of Additional Information dated May 1,
2002 (Employer-Sponsored Retirement Programs)
- --------------------------------------------------------------------------------
Name
- --------------------------------------------------------------------------------
Address
- --------------------------------------------------------------------------------
City State Zip
888-1297 (5/02)
EQUI-VEST(R)
A combination variable and fixed deferred annuity contract
PROSPECTUS DATED MAY 1, 2002
Please read and keep this prospectus for future reference. It contains
important information that you should know before purchasing or taking any
other action under your contract. Also, at the end of this prospectus you will
find attached the prospectuses for each Trust, which contain important
information about their portfolios.
- --------------------------------------------------------------------------------
WHAT IS EQUI-VEST(R)?
EQUI-VEST(R) is a deferred annuity contract issued by THE EQUITABLE LIFE
ASSURANCE SOCIETY OF THE UNITED STATES. It provides for the accumulation of
retirement savings and for income. The contract also offers death benefit
protection and a number of payout options. You invest to accumulate value on a
tax-deferred basis in one or more of our variable investment options, our
guaranteed interest option or in our fixed maturity options ("investment
options"). Each of these contracts may not currently be available in all
states.
- --------------------------------------------------------------------------------
VARIABLE INVESTMENT OPTIONS
- --------------------------------------------------------------------------------
FIXED INCOME:
- --------------------------------------------------------------------------------
o AXA Premier VIP Core Bond* o EQ/Alliance Quality Bond
o EQ/Alliance Intermediate Government o EQ/High Yield(1)
Securities o EQ/J.P. Morgan Core Bond
o EQ/Alliance Money Market
- --------------------------------------------------------------------------------
DOMESTIC STOCKS
- --------------------------------------------------------------------------------
o AXA Premier VIP Health Care* o EQ/Calvert Socially Responsible
o AXA Premier VIP Large Cap Core o EQ/Capital Guardian Research
Equity* o EQ/Capital Guardian U.S. Equity
o AXA Premier VIP Large Cap Growth* o EQ/Equity 500 Index
o AXA Premier VIP Large Cap Value* o EQ/Evergreen Omega
o AXA Premier VIP Small/Mid Cap o EQ/FI Mid Cap
Growth*
o AXA Premier VIP Small/Mid Cap Value* o EQ/FI Small/Mid Cap Value
o AXA Premier VIP Technology* o EQ/Janus Large Cap Growth
o EQ/Aggressive Stock o EQ/Lazard Small Cap Value
o EQ/Alliance Common Stock o EQ/Marsico Focus*
o EQ/Alliance Growth and Income o EQ/Mercury Basic Value Equity
o EQ/Alliance Premier Growth o EQ/MFS Emerging Growth Companies
o EQ/Alliance Small Cap Growth o EQ/MFS Investors Trust
o EQ/Alliance Technology o EQ/MFS Research
o EQ/AXP New Dimensions** o EQ/Putnam Growth & Income Value
o EQ/AXP Strategy Aggressive** o EQ/Putnam Voyager(2)
o EQ/Bernstein Diversified Value o EQ/Small Company Index
- --------------------------------------------------------------------------------
INTERNATIONAL STOCKS
- --------------------------------------------------------------------------------
o AXA Premier VIP International Equity* o EQ/Emerging Markets Equity
o EQ/Alliance Global o EQ/International Equity Index
o EQ/Alliance International o EQ/Putnam International Equity
o EQ/Capital Guardian International
- --------------------------------------------------------------------------------
Balanced/hybrid
- --------------------------------------------------------------------------------
o EQ/Alliance Growth Investors o EQ/Balanced
(1) Formerly named "EQ/Alliance High Yield."
(2) Formerly named, "EQ/Putnam Investors Growth."
* Subject to state availablility.
** Subject to shareholder approval, we anticipate that the EQ/AXP New
Dimensions and the EQ/AXP Strategy Aggressive investment options (the
"replaced options") will be merged into the EQ/Capital Guardian U.S. Equity
and the EQ/Allliance Small Cap Growth investment options (the "surviving
options"), respectively, on or about July 12, 2002. After the merger, the
replaced options will no longer be available and any allocation elections
to either of them will be considered as allocation elections to the
applicable surviving option. We will notify you if the replacements do not
take place.
You may allocate amounts to the variable investment options under your choice
of investment method subject to any restrictions. Each variable investment
option is a subaccount of Separate Account A. Each variable investment option,
in turn, invests in a corresponding securities portfolio of either Class IA/A
or IB/B shares of EQ Advisors Trust or AXA Premier VIP Trust (the "Trusts").
Your investment results in a variable investment option will depend on the
investment performance of the related portfolio.
GUARANTEED INTEREST OPTION. You may allocate amounts to the guaranteed interest
option. This option is part of our general account and pays interest at
guaranteed rates.
FIXED MATURITY OPTIONS. You may allocate amounts to one or more fixed maturity
options. These amounts will receive a fixed rate of interest for a specified
period. Interest is earned at a guaranteed rate set by us. We make a market
value adjustment (up or down) if you make transfers or withdrawals from a fixed
maturity option before its maturity date. Fixed maturity options may currently
not be available in your state. Check with your financial professional
regarding availability.
TYPES OF CONTRACTS. We offer different "series" of contracts for use as:
o A nonqualified annuity ("NQ") for after-tax contributions only.
o An individual retirement annuity ("IRA"), either traditional IRA or Roth IRA.
A contribution ranging from $20 to $1,000 is required to purchase a contract.
The minimum amount required depends on the type of contract, NQ or IRA and the
series purchased.
Registration statements relating to this offering have been filed with the
Securities and Exchange Commission ("SEC"). The statement of additional
information ("SAI") dated May 1, 2002 is a part of one of the registration
statements. The SAI is available free of charge. You may request one by writing
to our processing office or calling 1 (800) 628-6673. The SAI has been
incorporated by reference into this prospectus. This prospectus and the SAI can
also be obtained from the SEC's Web site at http://www.sec.gov. The table of
contents for the SAI appears at the back of this prospectus.
THE SEC HAS NOT APPROVED OR DISAPPROVED THESE SECURITIES OR DETERMINED IF THIS
PROSPECTUS IS ACCURATE OR COMPLETE. ANY REPRESENTATION TO THE CONTRARY IS A
CRIMINAL OFFENSE. THE CONTRACTS ARE NOT INSURED BY THE FDIC OR ANY OTHER
AGENCY. THEY ARE NOT DEPOSITS OR OTHER OBLIGATIONS OF ANY BANK AND ARE NOT BANK
GUARANTEED. THEY ARE SUBJECT TO INVESTMENT RISKS AND POSSIBLE LOSS OF
PRINCIPAL.
X00301
Series 100 & 300
Contents of this prospectus
- --------------------------------------------------------------------------------
EQUI-VEST(R)
- --------------------------------------------------------------------------------
Index of key words and phrases 4
Who is Equitable Life? 5
How to reach us 6
EQUI-VEST(R) at a glance -- key features 8
- --------------------------------------------------------------------------------
FEE TABLE 11
- --------------------------------------------------------------------------------
Examples: EQUI-VEST(R) series 300 contracts 14
Examples: EQUI-VEST(R) series 100 contracts 16
Condensed financial information 18
- --------------------------------------------------------------------------------
1. CONTRACT FEATURES AND BENEFITS 21
- --------------------------------------------------------------------------------
How you can purchase and contribute to your contract 21
Owner and annuitant requirements 24
How you can make your contributions 24
What are your investment options under the contract? 24
Selecting your investment method 30
Allocating your contributions 31
Your right to cancel within a certain number of days 31
- --------------------------------------------------------------------------------
2. DETERMINING YOUR CONTRACT'S VALUE 32
- --------------------------------------------------------------------------------
Your account value and cash value 32
Your contract's value in the variable investment options 32
Your contract's value in the guaranteed interest option 32
Your contract's value in the fixed maturity options 32
- --------------------------------------------------------------------------------
3. TRANSFERRING YOUR MONEY AMONG INVESTMENT
OPTIONS 33
- --------------------------------------------------------------------------------
Transferring your account value 33
Disruptive transfer activity 33
Automatic transfer options 33
Investment simplifier 33
Rebalancing your account value 34
- ----------------------
"We," "our" and "us" refer to Equitable Life.
When we use the word "contract" it also includes certificates that are issued
under group contracts in some states.
When we address the reader of this prospectus with words such as "you" and
"your," we mean the person who has the right or responsibility that the
prospectus is discussing at that point. This is usually the contract owner.
2 Contents of this prospectus
- --------------------------------------------------------------------------------
4. ACCESSING YOUR MONEY 35
- --------------------------------------------------------------------------------
Withdrawing your account value 35
How withdrawals are taken from your account value 35
Surrender of your contract to receive its cash value 36
Termination 36
When to expect payments 36
Your annuity payout options 36
- --------------------------------------------------------------------------------
5. CHARGES AND EXPENSES 38
- --------------------------------------------------------------------------------
Charges that Equitable Life deducts 38
Charges under the contracts 38
Charges that the Trusts deduct 38
Group or sponsored arrangements 40
Other distribution arrangements 40
- --------------------------------------------------------------------------------
6. PAYMENT OF DEATH BENEFIT 42
- --------------------------------------------------------------------------------
Your beneficiary and payment of benefit 42
How death benefit payment is made 42
Beneficiary continuation option under Series 100 and
300 Traditional IRA and Roth IRA contracts 42
- --------------------------------------------------------------------------------
7. TAX INFORMATION 44
- --------------------------------------------------------------------------------
Overview 44
Buying a contract to fund a retirement arrangement 44
Transfers among investment options 44
Taxation of nonqualified annuities 44
Individual retirement arrangements ("IRAs") 45
Roth individual retirement annuities ("Roth IRAs") 53
Federal and state income tax withholding and
information reporting 55
Impact of taxes to Equitable Life 56
- --------------------------------------------------------------------------------
8. MORE INFORMATION 57
- --------------------------------------------------------------------------------
About Separate Account A 57
About the Trusts 57
About our fixed maturity options 57
About the general account 58
About other methods of payment 59
Dates and prices at which contract events occur 59
About your voting rights 59
About legal proceedings 60
About our independent accountants 60
Financial statements 60
Transfers of ownership, collateral assignments,
loans, and borrowing 60
Distribution of the contracts 60
- --------------------------------------------------------------------------------
9. INVESTMENT PERFORMANCE 59
- --------------------------------------------------------------------------------
Communicating performance data 64
- --------------------------------------------------------------------------------
10. INCORPORATION OF CERTAIN DOCUMENTS
BY REFERENCE 65
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
APPENDICES
- --------------------------------------------------------------------------------
I -- Condensed financial information A-1
II -- Market value adjustment example B-1
- --------------------------------------------------------------------------------
STATEMENT OF ADDITIONAL INFORMATION
TABLE OF CONTENTS
- --------------------------------------------------------------------------------
Contents of this prospectus 3
Index of key words and phrases
- --------------------------------------------------------------------------------
This index should help you locate more information on the terms used in this
prospectus.
PAGE
account value
annuitant 21
annuity payout options 36
beneficiary 42
business day 59
cash value 26
conduit IRA 46
contract date 9
contract date anniversary 9
contract year 9
contributions 31
contributions to Roth IRAs
regular contribution 53
rollovers and transfers 53
conversion contributions 53
contributions to traditional IRAs 46
regular contributions 46
rollovers and transfers 48
disruptive transfer activity 33
EQAccess 6
fixed maturity options 29
guaranteed interest option 29
IRA cover
PAGE
IRS 44
investment options 24
market adjusted amount 26
market timing 33
market value adjustment 29
maturity value 29
NQ cover
portfolio cover
processing office 6
rate to maturity 57
regular contribution 46
Required Beginning Date 48
Roth IRA cover
SAI cover
SEC cover
TOPS 6
traditional IRA cover
Trusts cover
TSA cover
unit 32
unit investment trust 57
variable investment options 24
To make this prospectus easier to read, we sometimes use different words than
in the contract or supplemental materials. This is illustrated below. Although
we do use different words, they have the same meaning in this prospectus as in
the contract or supplemental materials. Your financial professional can provide
further explanation about your contract.
- --------------------------------------------------------------------------------
PROSPECTUS CONTRACT OR SUPPLEMENTAL MATERIALS
- --------------------------------------------------------------------------------
fixed maturity options Guarantee Periods or Fixed Maturity Accounts
variable investment options Investment Funds or Investment Divisions
account value Annuity Account Value
rate to maturity Guaranteed Rates
guaranteed interest option Guaranteed Interest Account
unit Accumulation unit
unit value Accumulation unit value
- --------------------------------------------------------------------------------
4 Index of key words and phrases
Who is Equitable Life?
- --------------------------------------------------------------------------------
We are The Equitable Life Assurance Society of the United States ("Equitable
Life"), a New York stock life insurance corporation. We have been doing
business since 1859. Equitable Life is a wholly owned subsidiary of AXA
Financial Inc. (previously, The Equitable Companies Incorporated). AXA, a
French holding company for an international group of insurance and related
financial services companies, is the sole shareholder of AXA Financial, Inc. As
the sole shareholder, and under its other arrangements with Equitable Life and
Equitable Life's parent, AXA exercises significant influence over the
operations and capital structure of Equitable Life and its parent. No company
other than Equitable Life, however, has any legal responsibility to pay amounts
that Equitable Life owes under the contracts.
AXA Financial, Inc. and its consolidated subsidiaries managed approximately
$481 billion in assets as of December 31, 2001. For over 100 years Equitable
Life has been among the largest insurance companies in the United States. We
are licensed to sell life insurance and annuities in all fifty states, the
District of Columbia, Puerto Rico, and the U.S. Virgin Islands. Our home office
is located at 1290 Avenue of the Americas, New York, N.Y. 10104.
Who is Equitable Life? 5
HOW TO REACH US
You may communicate with our processing office as listed below for the purposes
described. Certain methods of contacting us, such as by telephone or
electronically may be unavailable or delayed (for example our facsimile service
may not be available at all times and/or we may be unavailable due to emergency
closing). In addition, the level and type of service available may be
restricted based on criteria established by us.
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FOR NQ AND IRA OWNERS WHO SEND CONTRIBUTIONS
INDIVIDUALLY BY REGULAR MAIL:
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Equitable Life
EQUI-VEST(R)
Individual Collections
P.O. Box 13459
Newark, NJ 07188-0459
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FOR NQ AND IRA OWNERS WHO SEND CONTRIBUTIONS
INDIVIDUALLY BY EXPRESS DELIVERY:
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Equitable Life
c/o Bank One, N.A.
300 Harmon Meadow Boulevard, 3rd Floor
Secaucus, NJ 07094
Attn: Box 13459
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FOR ALL OTHER COMMUNICATIONS (E.G., REQUESTS FOR
TRANSFERS, WITHDRAWALS, OR REQUIRED NOTICES) SENT BY
REGULAR MAIL:
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Equitable Life
EQUI-VEST(R)
P.O. Box 2996
New York, NY 10116-2996
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FOR ALL OTHER COMMUNICATIONS (E.G., REQUESTS FOR
TRANSFERS, WITHDRAWALS, OR REQUIRED NOTICES) SENT BY
EXPRESS DELIVERY:
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Equitable Life
EQUI-VEST(R)
200 Plaza Drive, 2nd Floor
Secaucus, NJ 07094
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FOR NQ AND IRA CONTRIBUTIONS REMITTED BY EMPLOYERS
AND SENT BY REGULAR MAIL:
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Equitable Life
EQUI-VEST(R)
Unit Collections
P.O. Box 13463
Newark, New Jersey 07188-0463
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FOR NQ AND IRA CONTRIBUTIONS REMITTED BY EMPLOYERS
AND SENT BY EXPRESS DELIVERY:
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Equitable Life
c/o Bank One, N.A.
300 Harmon Meadow Boulevard, 3rd Floor
Secaucus, NJ 07094
Attn: Box 13463
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REPORTS WE PROVIDE:
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o written confirmation of financial transactions;
o quarterly statements of your contract values as of the close of each calendar
quarter; and
o annual statement of your contract values as of your contract date
anniversary.
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TELEPHONE OPERATED PROGRAM SUPPORT ("TOPS") AND
EQACCESS SYSTEMS:
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TOPS is designed to provide you with up-to-date information via touch-tone
telephone. EQAccess is designed to provide this information through the
Internet. You can obtain information on:
o your current account value;
o your current allocation percentages;
o the number of units you have in the variable investment options;
o rates to maturity for fixed maturity options;
o the daily unit values for the variable investment options; and
o performance information regarding the variable investment options (not
available through TOPS).
You can also:
o change your allocation percentages and/or transfer among the variable
investment options and the guaranteed interest option;
o elect the investment simplifier (not available through EQAccess);
o change your TOPS personal identification number ("PIN") (not available
through EQAccess); and
o change your EQAccess password (not available through TOPS).
TOPS and EQAccess are normally available seven days a week, 24 hours a day. You
may use TOPS by calling toll-free 1 (800) 755-7777. You may use EQAccess by
visiting our Web site at http://www.equitable.com and clicking on EQAccess.
Of course, for reasons beyond our control, these services may sometimes be
unavailable.
We have established procedures to reasonably confirm that the instructions
communicated by telephone or the Internet are genuine. For example, we will
require certain personal identification information before we will act on
telephone or Internet instructions and we will provide written confirmation of
your transfers. If we do not employ
6 Who is Equitable Life?
reasonable procedures to confirm the genuineness of telephone or Internet
instructions, we may be liable for any losses arising out of any act or
omission that constitutes negligence, lack of good faith, or willful
misconduct. In light of our procedures, we will not be liable for following
telephone or Internet instructions we reasonably believe to be genuine.
We reserve the right to limit access to these services if we determine that you
engaged in a disruptive transfer activity, such as "market timing" (see
"Disruptive transfer activity" in "Transferring your money among investment
options" later in this Prospectus).
CUSTOMER SERVICE REPRESENTATIVE:
You may also use our toll-free number 1 (800) 628-6673 to speak with one of our
customer service representatives. Our customer service representatives are
available on each business day Monday through Thursday from 8:00 a.m. to 7:00
p.m., and on Fridays until 5:00 p.m., Eastern Time.
Hearing or speech-impared clients may call the AT&T National Relay Number at
(800) 855-2880 for information about your account. If you have a
Telecommunications Device for the Deaf (TDD), you may relay messages or
questions to our Customer Service Department at (800) 628-6673, Monday through
Thursday from 8:00 a.m. to 7:00 p.m., and on Friday until 5:00 p.m. Eastern
Time, AT&T personnel will communicate our reply back to you via the TDD.
TOLL-FREE TELEPHONE SERVICE:
You may reach us toll-free by calling 1 (800) 841-0801 for a recording of daily
unit values for the variable investment options.
WE REQUIRE THAT THE FOLLOWING TYPES OF COMMUNICATIONS BE ON SPECIFIC FORMS WE
PROVIDE FOR THAT PURPOSE:
(1) conversion of your Traditional IRA contract to a Standard Roth IRA;
(2) cancellation of your Standard Roth IRA or Roth Advantage contract and
return to a traditional IRA contract;
(3) election of the automatic investment program;
(4) election of the investment simplifier;
(5) election of the automatic NQ deposit service;
(6) election of the rebalancing program;
(7) election of the required minimum distribution option;
(8) election of beneficiary contribution option;
(9) election of the principal assurance allocation; and
(10) request for a transfer/rollover of assets or 1035 exchange to another
carrier.
WE ALSO HAVE SPECIFIC FORMS THAT WE RECOMMEND YOU USE FOR THE FOLLOWING TYPES
OF REQUESTS:
(1) address changes;
(2) beneficiary changes;
(3) transfers among investment options;
(4) change of ownership; and
(5) contract surrender and withdrawal requests.
TO CHANGE OR CANCEL ANY OF THE FOLLOWING WE REQUIRE WRITTEN NOTIFICATION
GENERALLY AT LEAST SEVEN CALENDAR DAYS BEFORE THE NEXT SCHEDULED TRANSACTION:
(1) automatic investment program;
(2) investment simplifier;
(3) rebalancing program;
(4) systematic withdrawals; and
(5) the date annuity payments are to begin.
You must sign and date all these requests. Any written request that is not on
one of our forms must include your name and your contract number along with
adequate details about the notice you wish to give or the action you wish us to
take.
SIGNATURES:
The proper person to sign forms, notices and requests would normally be the
owner.
Who is Equitable Life? 7
EQUI-VEST(R) at a glance -- key features
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PROFESSIONAL INVESTMENT EQUI-VEST(R) variable investment options invest in different portfolios managed by professional
MANAGEMENT investment advisers.
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GUARANTEED INTEREST OPTION o Principal and interest guarantees
o Interest rates set periodically
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FIXED MATURITY OPTIONS o 10 (7 in Oregon) fixed maturity options with maturities ranging from approximately 1 to 10
(1 to 7 in Oregon) years.
o Each fixed maturity option offers a guarantee of principal and interest rate if you hold it to
maturity.
If you make withdrawals or transfers from a fixed maturity option before maturity, there will be a
market value adjustment due to differences in interest rates. This may increase or decrease any
value that you have left in that fixed maturity option. If you surrender your contract, a market
value adjustment may also apply
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TAX ADVANTAGES o On earnings inside the No tax until you make withdrawals from your contract or receive annuity
contract payments.
o On transfers inside the No tax on transfers among investment options.
contract
If you are purchasing an annuity contract as an Individual Retirement Annuity (IRA), you should be
aware that such annuities do not provide tax deferral benefits beyond those already provided by the
Internal Revenue Code. Before purchasing one of these annuities, you should consider whether its
features and benefits beyond tax deferral meet your needs and goals. You may also want to consider
the relative features, benefits and costs of these annuities with any other investment that you
may use in connection with your retirement plan or arrangement. (For more information, see
"Tax Information" later in this Prospectus.)
CONTRIBUTION AMOUNTS o NQ:
--$1,000 (initial) or $50 (initial for payroll deduction); $50 (additional).
o Traditional IRA and Standard Roth IRA:
--series 300 - $50 (initial and additional);
--series 100 - $20 (initial and additional).
Maximum contribution limitations may apply.
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ACCESS TO YOUR MONEY o Lump sum withdrawals
o Several withdrawal options on a periodic basis
o Contract surrender
You may incur a withdrawal charge for certain withdrawals or if you surrender your contract. You may
also incur income tax and a penalty tax.
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PAYOUT OPTIONS o Fixed annuity payout options
o Variable annuity payout options
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ADDITIONAL FEATURES o Dollar-cost averaging by automatic transfers
-- Interest sweep option
-- Fixed-dollar option
o Automatic investment program
o Account value rebalancing (quarterly, semiannually, and annually)
o No charge on transfers among investment options
o Waiver of withdrawal charge for disability, confinement to a nursing home, and terminal illness
(series 300 only)
o Minimum death benefit
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8 EQUI-VEST(R) at a glance -- key features
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FEES AND CHARGES o Daily charge on amounts invested in variable investment options for mortality and expense risks and
other expenses at current annual rates determined by contract series.
series 100: 1.34%; three options at 1.49%
series 300: 1.35%.
o Annual administrative charge:*
series 100: $30 or 2% of the account value, if less.
series 300: $30 or, during the first two contract years, 2% of the account value if less;
thereafter, $30 ($65 maximum).
*For individuals who own multiple contracts with combined account values of over $100,000, this
charge may be waived. See "Annual administrative charge" in "Charges and expenses" later in this
Prospectus.
o Charge for third-party transfer (such as in the case of a trustee-to-trustee transfer for an IRA
contract), or exchange (if your contract is exchanged for a contract issued by another insurance
company):
series 100: None
series 300: $25 current ($65 maximum) per occurrence.
o No sales charge deducted at the time you make contributions.
o Series 300 and NQ contracts under series 100: we deduct a charge equal to 6% of contributions that
have been withdrawn if such contributions were made in the current and five prior contract years.
o IRAs under series 100: -- 6% of the amount withdrawn, generally declining for the first through 12th
contract years. The total of all withdrawal charges may not exceed 8% of all contributions made
during a specified period before the withdrawal is made.
o There is no charge in any contract year in which the amount withdrawn does not exceed 10% of your
account value at the time of your withdrawal request minus prior withdrawals in that contract year.
Under certain circumstances the withdrawal charge will not apply. The circumstances are discussed in
"Charges and expenses" later in this Prospectus.
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The "contract date" is the effective date of a contract. This usually is the business day we receive
the properly completed and signed application, along with any other required documents and your initial
contribution. Your contract date will be shown in your contract. The 12-month period beginning on your
contract date and each 12-month period after that date is a "contract year." The end of each 12-month
period is your "contract date anniversary."
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o We deduct a charge designed to approximate certain taxes that may be imposed on us, such as premium
taxes in your state. The charge is generally deducted from the amount applied to an annuity payout
option.
o We deduct a $350 annuity administrative fee from amounts applied to a Variable Immediate Annuity
payout option.
o Annual expenses of the Trusts portfolios are calculated as a percentage of the average daily net
assets invested in each portfolio. These expenses include management fees ranging from 0.25% to
1.20% annually, other expenses, and for Class IB/B shares, 12b-1 fees of 0.25% annually.
o Daily charge on amounts invested in variable investment options for mortality and expense risks and
other expenses at annual rates determined by contract series.
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THE ABOVE IS NOT A COMPLETE DESCRIPTION OF ALL MATERIAL PROVISIONS OF THE
CONTRACT. IN SOME CASES RESTRICTIONS OR EXCEPTIONS APPLY. MAXIMUM EXPENSE
LIMITATIONS APPLY TO CERTAIN VARIABLE INVESTMENT OPTIONS, AND RIGHTS ARE
RESERVED TO CHANGE OR WAIVE CERTAIN CHARGES WITHIN SPECIFIED LIMITS. FOR
TRADITIONAL IRAS, THE MAXIMUM ISSUE AGE IS 70, BUT WE WILL ISSUE UP TO AGE 79
IF THE CONTRIBUTION IS A ROLLOVER CONTRIBUTION. ALSO, ALL FEATURES OF THE
CONTRACT, INCLUDING ALL VARIABLE INVESTMENT OPTIONS, ARE NOT NECESSARILY
AVAILABLE IN YOUR STATE OR AT CERTAIN AGES OR UNDER YOUR INVESTMENT METHOD.
For more detailed information we urge you to read the contents of this
prospectus, as well as your contract. Please feel free to speak with your
financial professional, or call us, if you have any questions.
OTHER CONTRACTS
We offer a variety of fixed and variable annuity contracts. They may offer
features, including investment options, fees and/or charges that are different
from those offered by this prospectus. Not every contract is offered through
the same distributor. Upon request, your financial professional can show you
information regarding other Equitable Life annuity contracts that he or she
distributes. You can also contact us to find out more about any of the
Equitable Life annuity contracts.
EQUI-VEST(R) at a glance -- key features 9
Fee table
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The fee tables below will help you understand the various charges and expenses
that apply to your contract series.* The tables reflect charges you will
directly incur under the contract, as well as charges and expenses of the
Trusts and their Portfolios that you will bear indirectly. Charges designed to
approximate certain taxes that may be imposed on us, such as premium taxes in
your state, may also apply. Also, an annuity administrative fee may apply when
your annuity payments are to begin. Each of the charges and expenses is more
fully described in "Charges and expenses" later in this Prospectus. For a
complete description of Portfolio charges and expenses, please see the attached
prospectuses for each Trust.
The guaranteed interest option and fixed maturity options are not covered by
the fee tables and examples. However, the annual administrative charge, the
withdrawal charge, and the third-party transfer or exchange charge do apply to
the guaranteed interest option and fixed maturity options. Also, an annuity
administrative fee may apply when your annuity payments are to begin. A market
value adjustment (up or down) may apply as a result of a withdrawal, transfer
or surrender of amounts from a fixed maturity option.
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Charges we deduct from your variable investment options expressed
as an annual percentage of daily net assets
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EQ/Balanced, EQ/Alliance
Common Stock, EQ/Alliance All Other Variable
Money Market Options Investment Options
--------------------------- ------------------
series series series
100 100 300
--------------------------- ------------------ ------------------
Mortality and expense risk(1) 0.65% 0.50% 1.10%
Other expenses(2) 0.84% 0.84% 0.25%
----- ----- -----
Total Separate Account A 1.49% 1.34% 1.35%
annual expenses(3)(4)
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CHARGES WE DEDUCT FROM YOUR ACCOUNT VALUE ON EACH CONTRACT DATE ANNIVERSARY
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Annual administrative charge(5) $30 (under series 300, $65 maximum)
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CHARGES WE DEDUCT FROM YOUR ACCOUNT VALUE AT THE TIME YOU REQUEST
CERTAIN TRANSACTIONS
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Maximum withdrawal charge(6) 6%
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Charge for third-party transfer or series 100: None
exchange(7) series 300: $25 current ($65 maximum)
for each occurrence
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Charge if you elect a Variable Immediate
Annuity payout option $350
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* Series 300 contracts are issued in Pennsylvania and series 100 contracts are
issued in Oregon.
10 Fee table
ANNUAL EXPENSES OF THE TRUSTS
(AS A PERCENTAGE OF AVERAGE DAILY NET ASSETS IN EACH PORTFOLIO)
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NET
TOTAL
OTHER ANNUAL
MANAGEMENT EXPENSES EXPENSES
FEES (AFTER EXPENSE (AFTER EXPENSE (AFTER EXPENSE
LIMITATION)(8) 12B-1 FEES(9) LIMITATION)(10) LIMITATION)(11)
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AXA PREMIER VIP TRUST:
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AXA Premier VIP Core Bond 0.00% 0.25% 0.70% 0.95%
AXA Premier VIP Health Care 0.44% 0.25% 1.16% 1.85%
AXA Premier VIP International Equity 0.62% 0.25% 0.93% 1.80%
AXA Premier VIP Large Cap Growth 0.31% 0.25% 0.79% 1.35%
AXA Premier VIP Large Cap Core Equity 0.17% 0.25% 0.93% 1.35%
AXA Premier VIP Large Cap Value 0.08% 0.25% 1.02% 1.35%
AXA Premier VIP Small/Mid Cap Growth 0.42% 0.25% 0.93% 1.60%
AXA Premier VIP Small/Mid Cap Value 0.20% 0.25% 1.15% 1.60%
AXA Premier VIP Technology 0.58% 0.25% 1.02% 1.85%
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EQ ADVISORS TRUST
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EQ/Aggressive Stock 0.61% -- 0.08% 0.69%
EQ/Alliance Common Stock 0.46% -- 0.07% 0.53%
EQ/Alliance Global 0.73% -- 0.12% 0.85%
EQ/Alliance Growth and Income 0.57% -- 0.06% 0.63%
EQ/Alliance Growth Investors 0.57% -- 0.06% 0.63%
EQ/Alliance Intermediate Government Securities 0.50% -- 0.12% 0.62%
EQ/Alliance International 0.85% -- 0.25% 1.10%
EQ/Alliance Money Market 0.33% -- 0.07% 0.40%
EQ/Alliance Premier Growth 0.84% 0.25% 0.06% 1.15%
EQ/Alliance Quality Bond 0.53% -- 0.07% 0.60%
EQ/Alliance Small Cap Growth 0.75% -- 0.06% 0.81%
EQ/Alliance Technology 0.82% 0.25% 0.08% 1.15%
EQ/AXP New Dimensions 0.00% 0.25% 0.70% 0.95%
EQ/AXP Strategy Aggressive 0.00% 0.25% 0.75% 1.00%
EQ/Balanced 0.57% -- 0.08% 0.65%
EQ/Bernstein Diversified Value 0.61% 0.25% 0.09% 0.95%
EQ/Calvert Socially Responsible 0.00% 0.25% 0.80% 1.05%
EQ/Capital Guardian International 0.66% 0.25% 0.29% 1.20%
EQ/Capital Guardian Research 0.55% 0.25% 0.15% 0.95%
EQ/Capital Guardian US Equity 0.59% 0.25% 0.11% 0.95%
EQ/Emerging Markets Equity 0.87% 0.25% 0.68% 1.80%
EQ/Equity 500 Index 0.25% -- 0.06% 0.31%
EQ/Evergreen Omega 0.00% 0.25% 0.70% 0.95%
EQ/FI Mid Cap 0.48% 0.25% 0.27% 1.00%
EQ/FI Small/Mid Cap Value 0.74% 0.25% 0.11% 1.10%
EQ/High Yield 0.60% -- 0.07% 0.67%
EQ/International Equity Index 0.35% 0.25% 0.50% 1.10%
EQ/J.P. Morgan Core Bond 0.44% 0.25% 0.11% 0.80%
EQ/Janus Large Cap Growth 0.76% 0.25% 0.14% 1.15%
EQ/Lazard Small Cap Value 0.72% 0.25% 0.13% 1.10%
EQ/Marsico Focus 0.00% 0.25% 0.90% 1.15%
EQ/Mercury Basic Value Equity 0.60% 0.25% 0.10% 0.95%
EQ/MFS Emerging Growth Companies 0.63% 0.25% 0.09% 0.97%
EQ/MFS Investors Trust 0.58% 0.25% 0.12% 0.95%
EQ/MFS Research 0.63% 0.25% 0.07% 0.95%
EQ/Putnam Growth & Income Value 0.57% 0.25% 0.13% 0.95%
EQ/Putnam International Equity 0.71% 0.25% 0.29% 1.25%
EQ/Putnam Voyager 0.62% 0.25% 0.08% 0.95%
EQ/Small Company Index 0.25% 0.25% 0.35% 0.85%
Notes:
(1) A portion of this charge is for providing the death benefit.
(2) For the series 300 contracts we currently charge 0.25% for the
EQ/Aggressive Stock, EQ/Balanced, EQ/Alliance Common Stock, and
EQ/Alliance Money Market options and 0.24% for all the other options (we
reserve the right to increase this charge to 0.25% at our discretion). For
series 100 contracts, this charge is for financial accounting and other
administrative services relating to the contracts.
Fee table 11
(3) Total Separate Account A annual expenses of the variable investment options
(not including the Trusts fees and other expenses) are guaranteed not to
exceed a total annual rate of (i) 1.35% for series 300 and (ii) 1.49% for
series 100 for the EQ/Balanced, EQ/Alliance Common Stock, and EQ/Alliance
Money Market options; and (iii) for series 100, an annual rate of 1.34%
for all the other options not listed in (ii).
(4 For series 100 contracts, the total Separate Account A annual expenses of
the variable investment options and total annual expenses of the Trusts
fees when added together are not permitted to exceed an annual rate of
1.75% for the EQ/Aggressive Stock, EQ/Balanced, EQ/Alliance Common Stock,
and EQ/Alliance Money Market options. Without this expense limitation, the
total annual expenses deducted from the variable investment options plus
the Trusts annual expenses for 2001 would have been 1.89% for the
EQ/Alliance Money Market option; 2.00% for the EQ/Alliance Common Stock
option; 2.01% for the EQ/Aggressive Stock option; and 2.14% for the
EQ/Balanced option.
(5) For series 300 contracts, during the first two contract years this charge
is equal to the lesser of $30 or 2% of your account value. Thereafter, the
charge is $30 for each contract year. We reserve the right to increase
this charge to an annual maximum of $65. For series 100 contracts, the
charge is equal to the lesser of $30 or 2% of your account value. Some
series 100 contracts are exempt from this charge.
(6) This charge applies to withdrawn contributions and is deducted upon a
withdrawal of amounts in excess of the 10% free withdrawal amount.
Important exceptions and limitations may eliminate or reduce this charge.
For a complete description of withdrawal charge, please see "Withdrawal
Charge" in "Charges and expenses," later in this Prospectus.
(7) For series 300 contracts we reserve the right to increase this charge to a
maximum of $65 for each occurrence.
(8) The management fees shown for each portfolio cannot be increased without a
vote of each portfolio's shareholders. See footnote (11) for any expense
limitation agreement information.
(9) Class IB/B shares of the Trusts are all subject to fees imposed under the
distribution plans (the "Rule 12b-1 Plan") adopted by The Trusts pursuant
to Rule 12b-1 under the Investment Company Act of 1940. The 12b-1 fee will
not be increased for the life of the contracts. Class IA/A shares of the
Trusts are not subject to these fees.
(10) The amounts shown as "Other Expenses" will fluctuate from year to year
depending on actual expenses. Since initial seed capital was invested for
the EQ/Marsico Focus Portfolio on August 31, 2001, "Other Expenses" shown
have been annualized. Initial seed capital was invested for the Portfolios
of the AXA Premier VIP Trust on December 31, 2001 thus, "Other Expenses"
shown are estimated. See footnote (10) for any expense limitation
agreement information.
(11) Equitable Life, the Trusts' manager, has entered into expense limitation
agreements with respect to certain Portfolios, which are effective through
April 30, 2003. Under these agreements Equitable Life has agreed to waive
or limit its fees and assume other expenses of each of these Portfolios,
if necessary, in an amount that limits each Portfolio's Total Annual
Expenses (exclusive of interest, taxes, brokerage commissions, capitalized
expenditures, and extraordinary expenses) to not more than the amounts
specified above as "Net Total Annual Expenses." Each portfolio may at a
later date make a reimbursement to Equitable Life for any of the
management fees waived or limited and other expenses assumed and paid by
Equitable Life pursuant to the expense limitation agreement provided that
the Portfolio's current annual operating expenses do not exceed the
operating expense limit determined for such Portfolio. For more
information see the prospectuses for each Trust. The following chart
indicates management fees and other expenses before any fee waivers and/or
expense reimbursements that would have applied to each Portfolio.
Portfolios that are not listed below do not have an expense limitation
arrangement in effect or the expense limitation arrangement did not result
in a fee waiver or reimbursement.
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MANAGEMENT FEES OTHER EXPENSES
(BEFORE ANY FEE (BEFORE ANY FEE
WAIVERS AND/OR WAIVERS AND/OR
EXPENSE EXPENSE
PORTFOLIO NAME REIMBURSEMENTS) REIMBURSEMENTS)
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AXA PREMIER VIP TRUST
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AXA Premier VIP Core Bond 0.60% 0.84%
AXA Premier VIP Health Care 1.20% 1.16%
AXA Premier VIP International
Equity 1.05% 0.93%
AXA Premier VIP Large Cap Growth 0.90% 0.79%
AXA Premier VIP Large Cap Core
Equity 0.90% 0.93%
AXA Premier VIP Large Cap Value 0.90% 1.02%
AXA Premier VIP Small/Mid Cap
Growrth 1.10% 0.93%
AXA Premier VIP Small/Mid Cap
Value 1.10% 1.15%
AXA Premier VIP Technology 1.20% 1.02%
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EQ ADVISORS TRUST
- --------------------------------------------------------------------------------
EQ/Alliance Premier Growth 0.90% 0.06%
EQ/Alliance Technology 0.90% 0.08%
EQ/AXP New Dimensions 0.65% 1.06%
EQ/AXP Strategy Aggressive 0.70% 0.77%
EQ/Bernstein Diversified Value 0.65% 0.09%
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- --------------------------------------------------------------------------------
MANAGEMENT FEES OTHER EXPENSES
(BEFORE ANY FEE (BEFORE ANY FEE
WAIVERS AND/OR WAIVERS AND/OR
EXPENSE EXPENSE
PORTFOLIO NAME REIMBURSEMENTS) REIMBURSEMENTS)
- --------------------------------------------------------------------------------
EQ/Calvert Socially Responsible 0.65% 1.46%
EQ/Capital Guardian International 0.85% 0.29%
EQ/Capital Guardian Research 0.65% 0.15%
EQ/Capital Guardian US Equity 0.65% 0.11%
EQ/Emerging Markets Equity 1.15% 0.68%
EQ/Evergreen Omega 0.65% 0.99%
EQ/FI Mid Cap 0.70% 0.27%
EQ/FI Small/Mid Cap Value 0.75% 0.11%
EQ/International Equity Index 0.35% 0.50%
EQ/J.P. Morgan Core Bond 0.45% 0.11%
EQ/Janus Large Cap Growth 0.90% 0.14%
EQ/Lazard Small Cap Value 0.75% 0.13%
EQ/Marsico Focus 0.90% 2.44%
EQ/MFS Investors Trust 0.60% 0.12%
EQ/MFS Research 0.65% 0.07%
EQ/Putnam Growth & Income Value 0.60% 0.13%
EQ/Putnam International Equity 0.85% 0.29%
EQ/Putnam Voyager 0.65% 0.08%
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12 Fee table
EXAMPLES: EQUI-VEST(R) SERIES 300 CONTRACTS
For each type of series 300 contract, the examples below show the expenses that
a hypothetical contract owner would pay in the situations illustrated. We
assume a $1,000 contribution is invested in one of the variable investment
options listed, and a 5% annual return is earned on the assets in that
option.(1) The annual administrative charge is based on charges that apply to a
mix of estimated contract sizes, resulting in an estimated administrative
charge for the purpose of these examples of $0.714 per $1,000. We also assume
there is no waiver of the withdrawal charge. The examples assume the
continuation of Total Annual Expenses (after expense limitation) shown for each
Portfolio of the Trusts in the table, above, for the entire one, three, five
and ten year periods included in the examples.
These examples should not be considered a representation of past or future
expenses for each option. Actual expenses may be greater or less than those
shown. Similarly, the annual rate of return assumed in the examples is not an
estimate or guarantee of future investment performance.
- -------------------------------------------------------------------------------------------------------
IF YOU SURRENDER YOUR CONTRACT AT THE END OF
EACH PERIOD SHOWN, THE EXPENSES
WOULD BE:
- ------------------------------------------------------------------------------------------------------
1 YEAR 3 YEARS 5 YEARS 10 YEARS
- ------------------------------------------------------------------------------------------------------
AXA Premier VIP Core Bond $ 80.24 $ 134.71 $ 190.82 $ 278.92
AXA Premier VIP Health Care $ 89.17 $ 161.18 $ 235.46 $ 368.51
AXA Premier VIP International Equity $ 88.68 $ 159.72 $ 233.09 $ 363.75
AXA Premier VIP Large Cap Core Equity $ 84.21 $ 146.54 $ 211.50 $ 319.76
AXA Premier VIP Large Cap Growth $ 84.21 $ 146.54 $ 211.50 $ 319.76
AXA Premier VIP Large Cap Value $ 84.21 $ 146.54 $ 211.50 $ 319.76
AXA Premier VIP Small/Mid Cap Growth $ 86.69 $ 153.88 $ 223.55 $ 344.44
AXA Premier VIP Small/Mid Cap Value $ 86.69 $ 153.88 $ 223.55 $ 344.44
AXA Premier VIP Technology $ 89.17 $ 161.18 $ 235.46 $ 368.51
EQ/Aggressive Stock $ 77.66 $ 126.97 $ 177.12 $ 251.47
EQ/Alliance Common Stock $ 76.07 $ 122.18 $ 168.60 $ 234.22
EQ/Alliance Global $ 79.25 $ 131.74 $ 185.57 $ 268.45
EQ/Alliance Growth and Income $ 77.06 $ 125.18 $ 173.93 $ 245.03
EQ/Alliance Growth Investors $ 77.06 $ 125.18 $ 173.93 $ 245.03
EQ/Alliance Intermediate Government Securities $ 76.96 $ 124.88 $ 173.40 $ 243.96
EQ/Alliance International $ 81.73 $ 139.16 $ 198.66 $ 294.43
EQ/Alliance Money Market $ 74.78 $ 118.28 $ 161.65 $ 219.99
EQ/Alliance Premier Growth $ 82.22 $ 140.64 $ 201.26 $ 299.54
EQ/Alliance Quality Bond $ 76.76 $ 124.28 $ 172.34 $ 241.80
EQ/Alliance Small Cap Growth $ 78.85 $ 130.55 $ 183.46 $ 264.23
EQ/Alliance Technology $ 82.22 $ 140.64 $ 201.26 $ 299.54
EQ/AXP New Dimensions $ 80.24 $ 134.71 $ 190.82 $ 278.92
EQ/AXP Strategy Aggressive $ 80.74 $ 136.19 $ 193.44 $ 284.11
EQ/Balanced $ 77.26 $ 125.77 $ 174.99 $ 247.18
EQ/Bernstein Diversified Value $ 80.24 $ 134.71 $ 190.82 $ 278.92
EQ/Calvert Socially Responsible $ 81.23 $ 137.68 $ 196.05 $ 289.28
EQ/Capital Guardian International $ 82.72 $ 142.11 $ 203.86 $ 304.64
EQ/Capital Guardian Research $ 80.24 $ 134.71 $ 190.82 $ 278.92
EQ/Capital Guardian U.S. Equity $ 80.24 $ 134.71 $ 190.82 $ 278.92
EQ/Emerging Markets Equity $ 88.68 $ 159.72 $ 233.09 $ 363.75
EQ/Equity 500 Index $ 73.89 $ 115.58 $ 156.81 $ 210.03
EQ/Evergreen Omega $ 80.24 $ 134.71 $ 190.82 $ 278.92
EQ/FI Mid Cap $ 80.74 $ 136.19 $ 193.44 $ 284.11
EQ/FI Small/Mid Cap Value $ 81.73 $ 139.16 $ 198.66 $ 294.43
EQ/High Yield $ 77.46 $ 126.37 $ 176.05 $ 249.33
EQ/International Equity Index $ 81.73 $ 139.16 $ 198.66 $ 294.43
EQ/J.P. Morgan Core Bond $ 78.75 $ 130.25 $ 182.93 $ 263.17
EQ/Janus Large Cap Growth $ 82.22 $ 140.64 $ 201.26 $ 299.54
EQ/Lazard Small Cap Value $ 81.73 $ 139.16 $ 198.66 $ 294.43
EQ/Marsico Focus $ 82.22 $ 140.64 $ 201.26 $ 299.54
EQ/Mercury Basic Value Equity $ 80.24 $ 134.71 $ 190.82 $ 278.92
EQ/MFS Emerging Growth Companies $ 80.44 $ 135.30 $ 191.87 $ 281.00
EQ/MFS Investors Trust $ 80.24 $ 134.71 $ 190.82 $ 278.92
EQ/MFS Research $ 80.24 $ 134.71 $ 190.82 $ 278.92
EQ/Putnam Growth & Income Value $ 80.24 $ 134.71 $ 190.82 $ 278.92
EQ/Putnam International Equity $ 83.22 $ 143.59 $ 206.45 $ 309.70
EQ/Putnam Voyager $ 80.24 $ 134.71 $ 190.82 $ 278.92
EQ/Small Company Index $ 79.25 $ 131.74 $ 185.57 $ 268.45
- ------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------
IF YOU DO NOT SURRENDER YOUR CONTRACT AT THE END
OF EACH PERIOD SHOWN, THE EXPENSES WOULD BE:
- ------------------------------------------------------------------------------------------------------
1 YEAR 3 YEARS 5 YEARS 10 YEARS
- ------------------------------------------------------------------------------------------------------
AXA Premier VIP Core Bond $ 24.88 $ 76.54 $ 130.82 $ 278.92
AXA Premier VIP Health Care $ 34.33 $ 104.60 $ 177.09 $ 368.51
AXA Premier VIP International Equity $ 33.80 $ 103.05 $ 174.57 $ 363.75
AXA Premier VIP Large Cap Core Equity $ 29.08 $ 89.08 $ 151.61 $ 319.76
AXA Premier VIP Large Cap Growth $ 29.08 $ 89.08 $ 151.61 $ 319.76
AXA Premier VIP Large Cap Value $ 29.08 $ 89.08 $ 151.61 $ 319.76
AXA Premier VIP Small/Mid Cap Growth $ 31.70 $ 96.86 $ 164.42 $ 344.44
AXA Premier VIP Small/Mid Cap Value $ 31.70 $ 96.86 $ 164.42 $ 344.44
AXA Premier VIP Technology $ 34.33 $ 104.60 $ 177.09 $ 368.51
EQ/Aggressive Stock $ 22.15 $ 68.33 $ 117.12 $ 251.47
EQ/Alliance Common Stock $ 20.48 $ 63.26 $ 108.60 $ 234.22
EQ/Alliance Global $ 23.83 $ 73.39 $ 125.57 $ 268.45
EQ/Alliance Growth and Income $ 21.52 $ 66.43 $ 113.93 $ 245.03
EQ/Alliance Growth Investors $ 21.52 $ 66.43 $ 113.93 $ 245.03
EQ/Alliance Intermediate Government Securities $ 21.42 $ 66.11 $ 113.40 $ 243.96
EQ/Alliance International $ 26.46 $ 81.25 $ 138.66 $ 294.43
EQ/Alliance Money Market $ 19.11 $ 59.12 $ 101.65 $ 219.99
EQ/Alliance Premier Growth $ 26.98 $ 82.82 $ 141.26 $ 299.54
EQ/Alliance Quality Bond $ 21.21 $ 65.48 $ 112.34 $ 241.80
EQ/Alliance Small Cap Growth $ 23.41 $ 72.12 $ 123.46 $ 264.23
EQ/Alliance Technology $ 26.98 $ 82.82 $ 141.26 $ 299.54
EQ/AXP New Dimensions $ 24.88 $ 76.54 $ 130.82 $ 278.92
EQ/AXP Strategy Aggressive $ 25.41 $ 78.11 $ 133.44 $ 284.11
EQ/Balanced $ 21.73 $ 67.06 $ 114.99 $ 247.18
EQ/Bernstein Diversified Value $ 24.88 $ 76.54 $ 130.82 $ 278.92
EQ/Calvert Socially Responsible $ 25.93 $ 79.68 $ 136.05 $ 289.28
EQ/Capital Guardian International $ 27.51 $ 84.39 $ 143.86 $ 304.64
EQ/Capital Guardian Research $ 24.88 $ 76.54 $ 130.82 $ 278.92
EQ/Capital Guardian U.S. Equity $ 24.88 $ 76.54 $ 130.82 $ 278.92
EQ/Emerging Markets Equity $ 33.80 $ 103.05 $ 174.57 $ 363.75
EQ/Equity 500 Index $ 18.17 $ 56.26 $ 96.81 $ 210.03
EQ/Evergreen Omega $ 24.88 $ 76.54 $ 130.82 $ 278.92
EQ/FI Mid Cap $ 25.41 $ 78.11 $ 133.44 $ 284.11
EQ/FI Small/Mid Cap Value $ 26.46 $ 81.25 $ 138.66 $ 294.43
EQ/High Yield $ 21.94 $ 67.70 $ 116.05 $ 249.33
EQ/International Equity Index $ 26.46 $ 81.25 $ 138.66 $ 294.43
EQ/J.P. Morgan Core Bond $ 23.31 $ 71.81 $ 122.93 $ 263.17
EQ/Janus Large Cap Growth $ 26.98 $ 82.82 $ 141.26 $ 299.54
EQ/Lazard Small Cap Value $ 26.46 $ 81.25 $ 138.66 $ 294.43
EQ/Marsico Focus $ 26.98 $ 82.82 $ 141.26 $ 299.54
EQ/Mercury Basic Value Equity $ 24.88 $ 76.54 $ 130.82 $ 278.92
EQ/MFS Emerging Growth Companies $ 25.09 $ 77.17 $ 131.87 $ 281.00
EQ/MFS Investors Trust $ 24.88 $ 76.54 $ 130.82 $ 278.92
EQ/MFS Research $ 24.88 $ 76.54 $ 130.82 $ 278.92
EQ/Putnam Growth & Income Value $ 24.88 $ 76.54 $ 130.82 $ 278.92
EQ/Putnam International Equity $ 28.03 $ 85.95 $ 146.45 $ 309.70
EQ/Putnam Voyager $ 24.88 $ 76.54 $ 130.82 $ 278.92
EQ/Small Company Index $ 23.83 $ 73.39 $ 125.57 $ 268.45
Fee table 13
(1) The amount accumulated from the $1,000 contribution could not be paid in
the form of an annuity payout option at the end of any of the periods
shown in the examples. This is because if the amount applied to purchase
an annuity payout option is less than $2,000, or the initial payment is
less than $20, we may pay the amount to you in a single sum instead of as
payments under an annuity payout option. See "Accessing your money" later
in this Prospectus.
IF YOU ELECT A VARIABLE IMMEDIATE ANNUITY PAYOUT OPTION:
Assuming an annuity payout option could be issued, (see Note (1) above), and
you elect a Variable Immediate Annuity payout option, the expenses shown in the
above example for "if you do not surrender your contract" would, in each case,
be increased by $5.44 based on the average amount applied to annuity payout
options in 2001. See "Annuity administrative fee" under "Charges and expenses"
later in this Prospectus.
14 Fee table
EXAMPLES: EQUI-VEST(R) SERIES 100 CONTRACTS
The examples below show the expenses that a hypothetical contract owner would
pay in the situations illustrated. We assume a $1,000 contribution is invested
in one of the variable investment options listed, and a 5% annual return is
earned on the assets in that option.(1) We also assume there is no waiver of
the withdrawal charge. The annual administrative charge is based on charges
that apply to a mix of estimated contract sizes, resulting in an estimated
administrative charge for the purpose of these examples of $0.714 per $1,000.
The examples assume the continuation of Total Annual Expenses (after expense
limitation) shown for each Portfolio of the Trusts in the table, above, for the
entire one, three, five and ten year periods included in the examples.
These examples should not be considered a representation of past or future
expenses for each option. Actual expenses may be greater or less than those
shown. Similarly, the annual rate of return assumed in the examples is not an
estimate or guarantee of future investment performance.
FOR IRA (TRADITIONAL IRA AND STANDARD ROTH IRA CONTRACTS WHERE THE FREE
WITHDRAWAL AMOUNT APPLIES AFTER THE THIRD CONTRACT YEAR):
- -----------------------------------------------------------------------------------------------------------
IF YOU SURRENDER YOUR CONTRACT AT THE END OF
EACH PERIOD SHOWN,
THE EXPENSES WOULD BE:
- -----------------------------------------------------------------------------------------------------------
1 YEAR 3 YEARS 5 YEARS 10 YEARS
- -----------------------------------------------------------------------------------------------------------
AXA Premier VIP Core Bond $ 86.29 $ 140.88 $ 191.46 $ 312.51
AXA Premier VIP Health Care $ 95.17 $ 167.18 $ 234.99 $ 399.13
AXA Premier VIP International Equity $ 94.67 $ 165.73 $ 232.61 $ 394.53
AXA Premier VIP Large Cap Core Equity $ 90.24 $ 152.63 $ 211.01 $ 352.00
AXA Premier VIP Large Cap Growth $ 90.24 $ 152.63 $ 211.01 $ 352.00
AXA Premier VIP Large Cap Value $ 90.24 $ 152.63 $ 211.01 $ 352.00
AXA Premier VIP Small/Mid Cap Growth $ 92.70 $ 159.92 $ 223.07 $ 375.87
AXA Premier VIP Small/Mid Cap Value $ 92.70 $ 159.92 $ 223.07 $ 375.87
AXA Premier VIP Technology $ 95.17 $ 167.18 $ 234.99 $ 399.13
EQ/Aggressive Stock $ 80.96 $ 124.86 $ 164.52 $ 256.59
EQ/Alliance Common Stock $ 80.96 $ 124.86 $ 164.52 $ 256.59
EQ/Alliance Global $ 85.30 $ 137.93 $ 186.52 $ 302.39
EQ/Alliance Growth and Income $ 83.13 $ 131.41 $ 175.57 $ 279.74
EQ/Alliance Growth Investors $ 83.13 $ 131.41 $ 175.57 $ 279.74
EQ/Alliance Intermediate Government Securities $ 83.04 $ 131.11 $ 175.07 $ 278.70
EQ/Alliance International $ 87.77 $ 145.30 $ 198.83 $ 327.51
EQ/Alliance Money Market $ 80.96 $ 124.86 $ 164.52 $ 256.59
EQ/Alliance Premier Growth $ 88.26 $ 146.77 $ 201.28 $ 332.46
EQ/Alliance Quality Bond $ 82.84 $ 130.52 $ 174.07 $ 276.62
EQ/Alliance Small Cap Growth $ 84.91 $ 136.74 $ 184.53 $ 298.31
EQ/Alliance Technology $ 88.26 $ 146.77 $ 201.28 $ 332.46
EQ/AXP New Dimensions $ 86.29 $ 140.88 $ 191.46 $ 312.51
EQ/AXP Strategy Aggressive $ 86.78 $ 142.35 $ 193.92 $ 317.54
EQ/Balanced $ 80.96 $ 124.86 $ 164.52 $ 256.59
EQ/Bernstein Diversified Value $ 86.29 $ 140.88 $ 191.46 $ 312.51
EQ/Calvert Socially Responsible $ 87.28 $ 143.83 $ 196.38 $ 322.54
EQ/Capital Guardian International $ 88.76 $ 148.23 $ 203.72 $ 337.38
EQ/Capital Guardian Research $ 86.29 $ 140.88 $ 191.46 $ 312.51
EQ/Capital Guardian U.S. Equity $ 86.29 $ 140.88 $ 191.46 $ 312.51
EQ/Emerging Markets Equity $ 94.67 $ 165.73 $ 232.61 $ 394.53
EQ/Equity 500 Index $ 79.98 $ 121.87 $ 159.46 $ 245.90
EQ/Evergreen Omega $ 86.29 $ 140.88 $ 191.46 $ 312.51
EQ/FI Mid Cap $ 86.78 $ 142.35 $ 193.92 $ 317.54
EQ/FI Small/Mid Cap Value $ 87.77 $ 145.30 $ 198.83 $ 327.51
EQ/High Yield $ 83.53 $ 132.59 $ 177.57 $ 283.90
EQ/International Equity Index $ 87.77 $ 145.30 $ 198.83 $ 327.51
EQ/J.P. Morgan Core Bond $ 84.81 $ 136.45 $ 184.04 $ 297.29
EQ/Janus Large Cap Growth $ 88.26 $ 146.77 $ 201.28 $ 332.46
EQ/Lazard Small Cap Value $ 87.77 $ 145.30 $ 198.83 $ 327.51
EQ/Marsico Focus $ 88.26 $ 146.77 $ 201.28 $ 332.46
EQ/Mercury Basic Value Equity $ 86.29 $ 140.88 $ 191.46 $ 312.51
EQ/MFS Emerging Growth Companies $ 86.49 $ 141.47 $ 192.45 $ 314.53
EQ/MFS Investors Trust $ 86.29 $ 140.88 $ 191.46 $ 312.51
EQ/MFS Research $ 86.29 $ 140.88 $ 191.46 $ 312.51
EQ/Putnam Growth & Income Value $ 86.29 $ 140.88 $ 191.46 $ 312.51
EQ/Putnam International Equity $ 89.25 $ 149.70 $ 206.16 $ 342.28
- -----------------------------------------------------------------------------------------------------------
Fee table 15
- -----------------------------------------------------------------------------------------------------------
IF YOU SURRENDER YOUR CONTRACT AT THE END OF
EACH PERIOD SHOWN,
THE EXPENSES WOULD BE:
- -----------------------------------------------------------------------------------------------------------
1 YEAR 3 YEARS 5 YEARS 10 YEARS
- -----------------------------------------------------------------------------------------------------------
EQ/Putnam Voyager $ 86.29 $ 140.88 $ 191.46 $ 312.51
EQ/Small Company Index $ 85.30 $ 137.93 $ 186.52 $ 302.39
- -----------------------------------------------------------------------------------------------------------
16 Fee table
FOR NQ CONTRACTS:
- -----------------------------------------------------------------------------------------------------------
IF YOU SURRENDER YOUR CONTRACT AT THE END OF
EACH PERIOD SHOWN, THE EXPENSES WOULD BE:
- -----------------------------------------------------------------------------------------------------------
1 YEAR 3 YEARS 5 YEARS 10 YEARS
- -----------------------------------------------------------------------------------------------------------
AXA Premier VIP Core Bond $ 80.14 $ 134.41 $ 191.46 $ 277.88
AXA Premier VIP Health Care $ 89.07 $ 160.89 $ 234.99 $ 367.56
AXA Premier VIP International Equity $ 88.58 $ 159.43 $ 232.61 $ 362.79
AXA Premier VIP Large Cap Core Equity $ 84.11 $ 146.24 $ 211.01 $ 318.75
AXA Premier VIP Large Cap Growth $ 84.11 $ 146.24 $ 211.01 $ 318.75
AXA Premier VIP Large Cap Value $ 84.11 $ 146.24 $ 211.01 $ 318.75
AXA Premier VIP Small/Mid Cap Growth $ 86.59 $ 153.58 $ 223.07 $ 343.47
AXA Premier VIP Small/Mid Cap Value $ 86.59 $ 153.58 $ 223.07 $ 343.47
AXA Premier VIP Technology $ 89.07 $ 160.89 $ 234.99 $ 367.56
EQ/Aggressive Stock $ 74.78 $ 118.28 $ 164.52 $ 219.99
EQ/Alliance Common Stock $ 74.78 $ 118.28 $ 164.52 $ 219.99
EQ/Alliance Global $ 79.15 $ 131.44 $ 186.52 $ 267.39
EQ/Alliance Growth and Income $ 76.96 $ 124.88 $ 175.57 $ 243.96
EQ/Alliance Growth Investors $ 76.96 $ 124.88 $ 175.57 $ 243.96
EQ/Alliance Intermediate Government Securities $ 76.86 $ 124.58 $ 175.07 $ 242.88
EQ/Alliance International $ 81.63 $ 138.86 $ 198.83 $ 293.40
EQ/Alliance Money Market $ 74.78 $ 118.28 $ 164.52 $ 219.99
EQ/Alliance Premier Growth $ 82.12 $ 140.34 $ 201.28 $ 298.52
EQ/Alliance Quality Bond $ 76.67 $ 123.98 $ 174.07 $ 240.72
EQ/Alliance Small Cap Growth $ 78.75 $ 130.25 $ 184.53 $ 263.17
EQ/Alliance Technology $ 82.12 $ 140.34 $ 201.28 $ 298.52
EQ/AXP New Dimensions $ 80.14 $ 134.41 $ 191.46 $ 277.88
EQ/AXP Strategy Aggressive $ 80.64 $ 135.90 $ 193.92 $ 283.08
EQ/Balanced $ 74.78 $ 118.28 $ 164.52 $ 219.99
EQ/Bernstein Diversified Value $ 80.14 $ 134.41 $ 191.46 $ 277.88
EQ/Calvert Socially Responsible $ 81.13 $ 137.38 $ 196.38 $ 288.25
EQ/Capital Guardian International $ 82.62 $ 141.82 $ 203.72 $ 303.62
EQ/Capital Guardian Research $ 80.14 $ 134.41 $ 191.46 $ 277.88
EQ/Capital Guardian U.S. Equity $ 80.14 $ 134.41 $ 191.46 $ 277.88
EQ/Emerging Markets Equity $ 88.58 $ 159.43 $ 232.61 $ 362.79
EQ/Equity 500 Index $ 73.79 $ 115.28 $ 159.46 $ 208.92
EQ/Evergreen Omega $ 80.14 $ 134.41 $ 191.46 $ 277.88
EQ/FI Mid Cap $ 80.64 $ 135.90 $ 193.92 $ 283.08
EQ/FI Small/Mid Cap Value $ 81.63 $ 138.86 $ 198.83 $ 293.40
EQ/High Yield $ 77.36 $ 126.07 $ 177.57 $ 248.26
EQ/International Equity Index $ 81.63 $ 138.86 $ 198.83 $ 293.40
EQ/J.P. Morgan Core Bond $ 78.65 $ 129.95 $ 184.04 $ 262.11
EQ/Janus Large Cap Growth $ 82.12 $ 140.34 $ 201.28 $ 298.52
EQ/Lazard Small Cap Value $ 81.63 $ 138.86 $ 198.83 $ 293.40
EQ/Marsico Focus $ 82.12 $ 140.34 $ 201.28 $ 298.52
EQ/Mercury Basic Value Equity $ 80.14 $ 134.41 $ 191.46 $ 277.88
EQ/MFS Emerging Growth Companies $ 80.34 $ 135.01 $ 192.45 $ 279.96
EQ/MFS Investors Trust $ 80.14 $ 134.41 $ 191.46 $ 277.88
EQ/MFS Research $ 80.14 $ 134.41 $ 191.46 $ 277.88
EQ/Putnam Growth & Income Value $ 80.14 $ 134.41 $ 191.46 $ 277.88
EQ/Putnam International Equity $ 83.12 $ 143.29 $ 206.16 $ 308.69
EQ/Putnam Voyager $ 80.14 $ 134.41 $ 191.46 $ 277.88
EQ/Small Company Index $ 79.15 $ 131.44 $ 186.52 $ 267.39
- -----------------------------------------------------------------------------------------------------------
Fee table 17
FOR NQ AND ALL IRA SERIES 100 CONTRACTS:
- -----------------------------------------------------------------------------------------------------------
IF YOU DO NOT SURRENDER YOUR CONTRACT AT THE
END OF EACH PERIOD SHOWN, THE EXPENSES WOULD BE:
- -----------------------------------------------------------------------------------------------------------
1 YEAR 3 YEARS 5 YEARS 10 YEARS
- -----------------------------------------------------------------------------------------------------------
AXA Premier VIP Core Bond $ 24.78 $ 76.22 $ 130.30 $ 277.88
AXA Premier VIP Health Care $ 34.22 $ 104.29 $ 176.59 $ 367.56
AXA Premier VIP International Equity $ 33.70 $ 102.75 $ 174.06 $ 362.79
AXA Premier VIP Large Cap Core Equity $ 28.97 $ 88.76 $ 151.09 $ 318.75
AXA Premier VIP Large Cap Growth $ 28.97 $ 88.76 $ 151.09 $ 318.75
AXA Premier VIP Large Cap Value $ 28.97 $ 88.76 $ 151.09 $ 318.75
AXA Premier VIP Small/Mid Cap Growth $ 31.60 $ 96.55 $ 163.91 $ 343.47
AXA Premier VIP Small/Mid Cap Value $ 31.60 $ 96.55 $ 163.91 $ 343.47
AXA Premier VIP Technology $ 34.22 $ 104.29 $ 176.59 $ 367.56
EQ/Aggressive Stock $ 19.11 $ 59.12 $ 101.65 $ 219.99
EQ/Alliance Common Stock $ 19.11 $ 59.12 $ 101.65 $ 219.99
EQ/Alliance Global $ 23.73 $ 73.07 $ 125.04 $ 267.39
EQ/Alliance Growth and Income $ 21.42 $ 66.11 $ 113.40 $ 243.96
EQ/Alliance Growth Investors $ 21.42 $ 66.11 $ 113.40 $ 243.96
EQ/Alliance Intermediate Government Securities $ 21.32 $ 65.80 $ 112.87 $ 242.88
EQ/Alliance International $ 26.35 $ 80.94 $ 138.14 $ 293.40
EQ/Alliance Money Market $ 19.11 $ 59.12 $ 101.65 $ 219.99
EQ/Alliance Premier Growth $ 26.88 $ 82.51 $ 140.74 $ 298.52
EQ/Alliance Quality Bond $ 21.11 $ 65.16 $ 111.80 $ 240.72
EQ/Alliance Small Cap Growth $ 23.31 $ 71.81 $ 122.93 $ 263.17
EQ/Alliance Technology $ 26.88 $ 82.51 $ 140.74 $ 298.52
EQ/AXP New Dimensions $ 24.78 $ 76.22 $ 130.30 $ 277.88
EQ/AXP Strategy Aggressive $ 25.30 $ 77.80 $ 132.92 $ 283.08
EQ/Balanced $ 19.11 $ 59.12 $ 101.65 $ 219.99
EQ/Bernstein Diversified Value $ 24.78 $ 76.22 $ 130.30 $ 277.88
EQ/Calvert Socially Responsible $ 25.83 $ 79.37 $ 135.53 $ 288.25
EQ/Capital Guardian International $ 27.40 $ 84.07 $ 143.34 $ 303.62
EQ/Capital Guardian Research $ 24.78 $ 76.22 $ 130.30 $ 277.88
EQ/Capital Guardian U.S. Equity $ 24.78 $ 76.22 $ 130.30 $ 277.88
EQ/Emerging Markets Equity $ 33.70 $ 102.75 $ 174.06 $ 362.79
EQ/Equity 500 Index $ 18.06 $ 55.94 $ 96.27 $ 208.92
EQ/Evergreen Omega $ 24.78 $ 76.22 $ 130.30 $ 277.88
EQ/FI Mid Cap $ 25.30 $ 77.80 $ 132.92 $ 283.08
EQ/FI Small/Mid Cap Value $ 26.35 $ 80.94 $ 138.14 $ 293.40
EQ/High Yield $ 21.84 $ 67.38 $ 115.52 $ 248.26
EQ/International Equity Index $ 26.35 $ 80.94 $ 138.14 $ 293.40
EQ/J.P. Morgan Core Bond $ 23.20 $ 71.49 $ 122.40 $ 262.11
EQ/Janus Large Cap Growth $ 26.88 $ 82.51 $ 140.74 $ 298.52
EQ/Lazard Small Cap Value $ 26.35 $ 80.94 $ 138.14 $ 293.40
EQ/Marsico Focus $ 26.88 $ 82.51 $ 140.74 $ 298.52
EQ/Mercury Basic Value Equity $ 24.78 $ 76.22 $ 130.30 $ 277.88
EQ/MFS Emerging Growth Companies $ 24.99 $ 76.85 $ 131.35 $ 279.96
EQ/MFS Investors Trust $ 24.78 $ 76.22 $ 130.30 $ 277.88
EQ/MFS Research $ 24.78 $ 76.22 $ 130.30 $ 277.88
EQ/Putnam Growth & Income Value $ 24.78 $ 76.22 $ 130.30 $ 277.88
EQ/Putnam International Equity $ 27.93 $ 85.64 $ 145.93 $ 308.69
EQ/Putnam Voyager $ 24.78 $ 76.22 $ 130.30 $ 277.88
EQ/Small Company Index $ 23.73 $ 73.07 $ 125.04 $ 267.39
- -----------------------------------------------------------------------------------------------------------
(1) The amount accumulated from the $1,000 contribution could not be paid in
the form of an annuity payout option at the end of any of the periods
shown in the examples. This is because if the amount applied to purchase
an annuity payout option is less than $2,000, or the initial payment is
less than $20, we may pay the amount to you in a single sum instead of as
payments under an annuity payout option. See "Accessing your money" later
in this Prospectus.
18 Fee table
IF YOU ELECT A VARIABLE IMMEDIATE ANNUITY PAYOUT OPTION:
Assuming an annuity payout option could be issued, (see Note (1) above), and
you elect a Variable Immediate Annuity payout option, the expenses shown in the
above example for "if you do not surrender your contract" would, in each case,
be increased by $5.44 based on the average amount applied to annuity payout
options in 2001. See "Annuity administrative fee" under "Charges and expenses"
later in this Prospectus.
CONDENSED FINANCIAL INFORMATION
Please see Appendix I at the end of this Prospectus, for the unit values and
number of units outstanding as of the periods shown for each of the variable
investment options available as of December 31, 2001.
Fee table 19
1. Contract features and benefits
- --------------------------------------------------------------------------------
In this prospectus, we use a "series" number when necessary to identify a
particular contract. We discuss two series of contracts: series 100 which is
available only in Oregon, and series 300 which is available only in
Pennsylvania. Once you have purchased a contract, you can identify the
EQUI-VEST(R) series you have by referring to your confirmation notice, or you
may contact your financial professional, or you may call our toll-free number.
HOW YOU CAN PURCHASE AND CONTRIBUTE TO YOUR CONTRACT
You may purchase a contract by making payments to us that we call
"contributions." We require a minimum contribution amount for each type and
series of contract purchased. The minimum contribution amount under our
automatic investment program is $20 ($50 for series 300). We discuss the
automatic investment program under "About other methods of payment" in "More
information" later in this Prospectus. The following table summarizes our rules
regarding contributions to your contract. Ages in the table refer to the age of
the annuitant.
- --------------------------------------------------------------------------------
The "annuitant" is the person who is the measuring life for determining
contract benefits. The annuitant is not necessarily the contract owner.
- --------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
MINIMUM SOURCE OF LIMITATIONS ON CONTRI-
CONTRACT TYPE ANNUITANT ISSUE AGES CONTRIBUTIONS CONTRIBUTIONS BUTIONS
- ------------------------------------------------------------------------------------------------------------------------------------
NQ 0-83 o $1,000 (initial), o After-tax money. Not applicable.
$50 (additional)
(both series) o Paid to us by check
or transfer of con-
tract value in a tax
deferred exchange
under Section 1035
of the Internal Rev-
enue Code.
o Paid to us by an
employer who
establishes a pay-
roll deduction
program.
20 Contract features and benefits
- ------------------------------------------------------------------------------------------------------------------------------------
MINIMUM SOURCE OF LIMITATIONS ON CONTRI-
CONTRACT TYPE ANNUITANT ISSUE AGES CONTRIBUTIONS CONTRIBUTIONS BUTIONS
- ------------------------------------------------------------------------------------------------------------------------------------
Traditional IRA 0-83 o $20 (initial and addi- o "Regular" traditional IRA o Regular IRA contributions
tional) (series 100) contributions either may not exceed $3,000
made by you or paid to for 2002.
o $50 (initial and addi- us by an employer who
tional) (series 300) establishes a payroll o No regular IRA contribu-
deduction program. tions in the year you turn
age 70-1/2 and thereafter.
o For the calendar year
2002, additional o Rollover and direct trans-
catch-up contributions. fer contributions after age
701/2 must be net of
o Eligible rollover distribu- required minimum
tions from TSA contracts distributions.
or other 403(b) arrange-
ments, qualified plans o Although we accept
and governmental EDC rollover and direct trans-
plans. fer contributions under
the traditional IRA con-
o Rollovers from another tracts, we intend that
traditional individual these contracts be used
retirement arrangement. for ongoing regular
contributions.
o Direct custodian-to-
custodian transfers from o Additional catch-up con-
other traditional indi- tributions totalling up to
vidual retirement $500 can be made for the
arrangements. calendar year 2002 where
the owner is at least age
50 but under age 70-1/2 at
any time during 2002.
- ------------------------------------------------------------------------------------------------------------------------------------
Roth IRA 0-83 o $20 (initial and addi- o Regular after-tax contri- o Regular Roth IRA contri-
tional) (series 100) butions either made by butions may not exceed
you or paid to us by an $3,000 for 2002.
o $50 (initial and addi- employer who estab-
tional) (series 300) lishes a payroll deduction o Contributions are subject
program. to income limits and
other tax rules. See "Con-
o For the calendar year tributions to Roth IRAs"
2002, additional in "Tax information" later
catch-up contributions. in this Prospectus.
o Rollovers from another o Additional catch-up con-
Roth IRA. tributions totalling up to
$500 can be made where
o Conversion rollovers the owner is at least age
from a Traditional IRA. 50 at any time during
o Direct transfers from 2002 for 2002.
another Roth IRA.
- ------------------------------------------------------------------------------------------------------------------------------------
See "Tax information" later in this Prospectus for a more detailed discussion
of sources of contributions and certain contribution limitations. We may refuse
to accept any contribution if the sum of all contributions under all
EQUI-VEST(R) contracts with the same annuitant would then total more than
$1,500,000. We may also refuse to accept any contribution if the sum of all
contributions under all Equitable Life annuity accumulation contracts that you
own would then total more than $2,500,000.
For information on when contributions are credited see "Dates and prices at
which contract events occur" under "More information" later in this Prospectus.
Contract features and benefits 21
OWNER AND ANNUITANT REQUIREMENTS
Under NQ contracts, the annuitant can be different than the owner. Under any
type of the IRA contract, the owner and annuitant must be the same person.
HOW YOU CAN MAKE YOUR CONTRIBUTIONS
Except as noted below, contributions must be made by check drawn on a U.S.
bank, in U.S. dollars, and made payable to Equitable Life. We may also apply
contributions made pursuant to a 1035 tax-free exchange or a direct transfer.
We do not accept third-party checks endorsed to us except for rollover
contributions, tax-free exchanges or trustee checks that involve no refund. All
checks are subject to our ability to collect the funds. We reserve the right to
reject a payment if it is received in an unacceptable form.
Additional contributions may also be made by wire transfer or our automatic
investment program. The method of payment is discussed in detail in "More
information" later in this Prospectus.
Your initial contribution must generally be accompanied by an application and
any other form we need to process the contribution. If any information is
missing or unclear, we will try to obtain that information. If we are unable to
obtain all of the information we require within five business days after we
receive an incomplete application or form, we will inform the financial
professional submitting the application on your behalf. We will then return the
contribution to you unless you specifically direct us to keep your contribution
until we receive the required information.
Generally, you may make additional contributions at any time. You may do so in
single sum amounts, on a regular basis, or as your financial situation permits.
- --------------------------------------------------------------------------------
Our "business day" generally is any day on which the New York Stock Exchange is
open for trading. A business day does not include any day we choose not to open
due to emergency conditions. We may also close early due to emergency
conditions.
- --------------------------------------------------------------------------------
WHAT ARE YOUR INVESTMENT OPTIONS UNDER THE CONTRACT?
Your investment options are the variable investment options, the guaranteed
interest option and the fixed maturity options.
VARIABLE INVESTMENT OPTIONS
Your investment results in any one of the variable investment options will
depend on the investment performance of the underlying portfolios. You can lose
your principal when investing in the variable investment options. In periods of
poor market performance, the net return, after charges and expenses, may result
in negative yields, including for the EQ/Alliance Money Market variable
investment option. Listed below are the currently available portfolios, their
investment objectives, and their advisers.
- --------------------------------------------------------------------------------
You can choose from among the variable investment options, the guaranteed
interest option and the fixed maturity options.
- --------------------------------------------------------------------------------
22 Contract features and benefits
Portfolios of the Trusts
You should note that some portfolios have objectives and strategies that
are substantially similar to those of certain funds that are purchased directly
rather than under a variable insurance product such as EQUI-VEST(R). These
portfolios may even have the same manager(s) and/or a similar name. However,
there are numerous factors that can contribute to differences in performance
between two investments, particularly over short peri- ods of time. Such factors
include the timing of stock purchases and sales; differences in fund cash flows;
and specific strategies employed by the portfolio manager.
- --------------------------------------------------------------------------------------------------------------------------------
AXA PREMIER VIP TRUST:
PORTFOLIO NAME OBJECTIVE ADVISER(S)
- --------------------------------------------------------------------------------------------------------------------------------
AXA Premier VIP Core Bond* Seeks a balance of a high current BlackRock Advisors, Inc.
income and capital appreciation Pacific Investment Management
consistent with a prudent level Company LLC
of risk
- ------------------------------------------------------------------------------------------------------------------------------------
AXA Premier VIP Health Care* Long-term growth of capital AIM Capital Mangement, Inc.
Dresdner RCM Global Investors LLC
Wellington Mangement Company, LLP
- ------------------------------------------------------------------------------------------------------------------------------------
AXA Premier VIP International Long-term growth of capital Alliance Capital Management L.P.,
Equity* through its Bernstein Investment
Research and Management Unit
Bank of Ireland Asset Management
(U.S.) Limited
OppenheimerFunds, Inc.
- ------------------------------------------------------------------------------------------------------------------------------------
AXA Premier VIP Large Cap Core Long-term growth of capital Alliance Capital Management L.P.,
Equity* through its Bernstein Investment
Research and Management Unit
Janus Capital Management LLC
Thornburg Investment
Management Inc.
- ------------------------------------------------------------------------------------------------------------------------------------
AXA Premier VIP Large Cap Long-term growth of capital Alliance Capital Management L.P.
Growth* Dresdner RCM Global Investors LLC
TCW Investment Management Company
- ------------------------------------------------------------------------------------------------------------------------------------
AXA Premier VIP Large Cap Value* Long-term growth of capital Alliance Capital Management L.P.
Institutional Capital Corporation
MFS Investment Management
- ------------------------------------------------------------------------------------------------------------------------------------
AXA Premier VIP Small/Mid Cap Long-term growth of capital Alliance Capital Management L.P.
Growth* MFS Investment Management
RS Investment Management, L.P.
- ------------------------------------------------------------------------------------------------------------------------------------
AXA Premier VIP Small/Mid Cap Long-term growth of capital AXA Rosenberg Investment Management,
Value* LLC
The Boston Company Asset Management
LLC
TCW Investment Management Company
- ------------------------------------------------------------------------------------------------------------------------------------
AXA Premier VIP Technology* Long-term growth of capital Alliance Capital Management L.P.
Dresdner RCM Global Investors LLC
Firsthand Capital Management, Inc.
- --------------------------------------------------------------------------------------------------------------------------------
EQ ADVISORS TRUST:
PORTFOLIO NAME OBJECTIVE
- --------------------------------------------------------------------------------------------------------------------------------
EQ/Aggressive Stock Seeks to achieve long-term growth of Alliance Capital Management L.P.
capital Marsico Capital Management, LLC
MFS Investment Management
Provident Investment Counsel, Inc.
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/Alliance Common Stock Seeks to achieve long-term growth Alliance Capital Management L.P.
of capital and increased income
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/Alliance Global Seeks long-term growth of capital Alliance Capital Management L.P.
- ------------------------------------------------------------------------------------------------------------------------------------
Contract features and benefits 23
Portfolios of the Trusts (continued)
- ------------------------------------------------------------------------------------------------------------------------------------
PORTFOLIO NAME OBJECTIVE ADVISER(S)
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/Alliance Growth and Income Seeks to provide a high total return. Alliance Capital Management L.P.
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/Alliance Growth Investors Seeks to achieve the highest total return consistent with Alliance Capital Management L.P.
the Adviser's determination of reasonable risk
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/Alliance Intermediate Seeks to achieve high current income consistent with Alliance Capital Management L.P.
Government Securities relative stability of principal
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/Alliance International Seeks long-term growth of capital Alliance Capital Management L.P.
(including through its Bernstein
Investment Research and Management
Unit)
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/Alliance Money Market Seeks to obtain a high level of current income, preserve Alliance Capital Management L.P.
its assets and maintain liquidity
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/Alliance Premier Growth Seeks long-term growth of capital Alliance Capital Management L.P.
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/Alliance Quality Bond Seeks to achieve high current income consistent with Alliance Capital Management L.P.
moderate risk of capital
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/Alliance Small Cap Growth Seeks to achieve long-term growth of capital Alliance Capital Management L.P.
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/Alliance Technology Seeks to achieve growth of capital. Current income is Alliance Capital Management L.P.
incidental to the Portfolio's objective
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/AXP New Dimensions Seeks long-term growth of capital American Express Financial Corporation
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/AXP Strategy Aggressive Seeks long-term growth of capital American Express Financial Corporation
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/Balanced Seeks to achieve a high return through both appreciation Alliance Capital Management L.P.
of capital and current income Capital Guardian Trust Company
Jennison Associates LLC
Prudential Investments LLC
Mercury Advisors
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/Bernstein Diversified Value Seeks capital appreciation Alliance Capital Management L.P.,
through its Bernstein Investment
Research and Management Unit
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/Calvert Socially Responsible* Seeks long-term capital appreciation Calvert Asset Management Company, Inc.
Brown Capital Management, Inc.
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/Capital Guardian International Seeks long-term growth of capital Capital Guardian Trust Company
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/Capital Guardian Research Seeks long-term growth of capital Capital Guardian Trust Company
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/Capital Guardian U.S. Equity Seeks long-term growth of capital Capital Guardian Trust Company
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/Emerging Markets Equity Seeks long-term capital appreciation Morgan Stanley Investment Management
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/Equity 500 Index Seeks a total return before expenses that approximates Alliance Capital Management L.P.
the total return performance of the S&P 500 Index,
including reinvestment of dividends, at a risk level consis-
tent with that of the S&P 500 Index
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/Evergreen Omega Seeks long-term capital growth Evergreen Investment Management
Company, LLC
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/FI Mid Cap Seeks long-term growth of capital Fidelity Management & Research Company
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/FI Small/Mid Cap Value Seeks long-term capital appreciation Fidelity Management & Research Company
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/High Yield Seeks to achieve a high total return through a combina- Alliance Capital Management, L.P.
tion of current income and capital appreciation
- ------------------------------------------------------------------------------------------------------------------------------------
24 Contract features and benefits
PORTFOLIOS OF THE TRUSTS (CONTINUED)
- ------------------------------------------------------------------------------------------------------------------------------------
PORTFOLIO NAME OBJECTIVE ADVISER(S)
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/International Equity Index Seeks to replicate as closely as possible (before deduc- Deutsche Asset Management Inc.
tion of Portfolio expenses) the total return of the MSCI
EAFE Index
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/J.P. Morgan Core Bond Seeks to provide a high total return consistent with mod- J.P. Morgan Investment Management, Inc.
erate risk of capital and maintenance of liquidity
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/Janus Large Cap Growth Seeks long-term growth of capital Janus Capital Management LLC
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/Lazard Small Cap Value Seeks capital appreciation Lazard Asset Management
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/Marsico Focus* Seeks to achieve long-term growth of capital Marsico Capital Management, LLC
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/Mercury Basic Value Equity Seeks capital appreciation and secondarily, income Mercury Advisors
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/MFS Emerging Growth Seeks to provide long-term capital growth MFS Investment Management
Companies
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/MFS Investors Trust Seeks long-term growth of capital with a secondary MFS Investment Management
objective to seek reasonable current income
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/MFS Research Seeks to provide long-term growth of capital and future MFS Investment Management
income
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/Putnam Growth & Income Seeks capital growth. Current income is a secondary Putnam Investment Management, LLC
Value objective
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/Putnam International Equity Seeks capital appreciation Putnam Investment Management, LLC
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/Putnam Voyager Seeks long-term growth of capital and any increased Putnam Investment Management, LLC
income that results from this growth
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/Small Company Index Seeks to replicate as closely as possible (before deduc- Deutsche Asset Management Inc.
tion of Portfolio expenses) the total return of the Russell
2000 Index
- ------------------------------------------------------------------------------------------------------------------------------------
* Subject to state availability.
Other important information about the portfolios is included in the
prospectuses for each Trust attached at the end of this Prospectus.
Contract features and benefits 25
GUARANTEED INTEREST OPTION
The guaranteed interest option is part of our general account and pays interest
at guaranteed rates. We discuss our general account in "More information" later
in this Prospectus.
We assign an interest rate to each amount allocated to the guaranteed interest
option. This rate is guaranteed for a specified period. The rate may be
different depending upon certain factors including the type and series of your
contract and when the allocation is made.
Therefore, different interest rates may apply to different amounts in the
guaranteed interest option.
We credit interest daily to amounts in the guaranteed interest option. There
are three levels of interest in effect at the same time in the guaranteed
interest option:
(1) the minimum interest rate guaranteed over the life of the contract,
(2) the yearly guaranteed interest rate for the calendar year, and
(3) the current interest rate.
We set current interest rates periodically, according to our procedures that we
have in effect at the time. All interest rates are effective annual rates, but
before deduction of annual administrative charges or any withdrawal charges.
The minimum yearly guaranteed interest rate is 3% for 2002 (except for Series
100 NQ contracts where the minimum is 4%). The yearly rates we set will never
be less than the minimum guaranteed interest rate of 3% for the life of the
contract. A 4% minimum may apply under some contracts. Current interest rates
will never be less than the yearly guaranteed interest rate.
FIXED MATURITY OPTIONS
We offer fixed maturity options with maturity dates ranging from one to ten
years (one to seven in Oregon). You can allocate your contributions to one or
more of these fixed maturity options. However, you may not allocate more than
one contribution to any one fixed maturity option. Your contributions will
accumulate interest at the "rate to maturity" for each fixed maturity option.
The total amount you allocate to and accumulate in each fixed maturity option
is called the "fixed maturity amount." The fixed maturity options are only
available in states where approved. Your financial professional can provide
your state's approval status.
- --------------------------------------------------------------------------------
Fixed maturity options range from one to ten years to maturity.
- --------------------------------------------------------------------------------
The rate to maturity you will receive for each fixed maturity option is the
rate to maturity in effect for new contributions allocated to that fixed
maturity option on the date we apply your contribution. If you make any
withdrawals or transfers from a fixed maturity option before the maturity date,
we will make a "market value adjustment" that may increase or decrease any
fixed maturity amount you have left in that fixed maturity option. We discuss
the market value adjustment below and in greater detail later in this
Prospectus in "More information."
On the maturity date of a fixed maturity option your fixed maturity amount,
assuming you have not made any withdrawals or transfers, will equal your
contribution to that fixed maturity option plus interest, at the rate to
maturity for that contribution, to the date of the calculation. This is the
fixed maturity option's "maturity value." Before maturity, the current value we
will report for your fixed maturity amount will reflect a market value
adjustment. Your current value will reflect the market value adjustment that we
would make if you were to withdraw all of your fixed maturity amounts on the
date of the report. We call this your "market adjusted amount."
FIXED MATURITY OPTIONS AND MATURITY DATES. We currently offer fixed maturity
options ending on June 15th for each of the maturity years 2003 through 2012.
Not all fixed maturity options will be available for annuitants 76 and older.
See "Allocating your contributions" below. As fixed maturity options expire, we
expect to add maturity years so that generally 10 (7 in Oregon) fixed maturity
options are available at any time.
We will not accept allocations to a fixed maturity option if on the date the
contribution is to be applied:
o you previously allocated a contribution or made a transfer to the same
fixed maturity option; or
o the rate to maturity is 3%; or
o the fixed maturity option's maturity date is within 45 days; or
o the fixed maturity option's maturity date is later than the date annuity
payments are to begin.
YOUR CHOICES AT THE MATURITY DATE. We will notify you at least 45 days before
each of your fixed maturity options is scheduled to mature. At that time, you
may choose to have one of the following take place on the maturity date, as
long as none of the conditions listed above or in "Allocating your
contributions," below would apply:
(a) transfer the maturity value into another available fixed maturity option,
or into any of the variable investment options; or
(b) withdraw the maturity value (there may be a withdrawal charge).
If we do not receive your choice on or before the fixed maturity option's
maturity date, we will automatically transfer your maturity value into the
fixed maturity option that will mature next (or another investment option if we
are required to do so by any state regulation). We may change our procedures in
the future.
MARKET VALUE ADJUSTMENT. If you make any withdrawals (including transfers,
surrender or termination of your contract, or when we make deductions for
charges) from a fixed maturity option before it matures we will make a market
value adjustment, which will increase or decrease any fixed maturity amount you
have in that fixed maturity option. The amount of the adjustment will depend on
two factors:
(a) the difference between the rate to maturity that applies to the amount
being withdrawn and the rate to maturity in effect at that time for new
allocations to that same fixed maturity option, and
(b) the length of time remaining until the maturity date.
In general, if interest rates rise from the time that you originally allocate
an amount to a fixed maturity option to the time that you take a withdrawal,
the market value adjustment will be negative. Likewise, if interest rates drop
at the end of that time, the market value adjustment will be positive. Also,
the amount of the market value
26 Contract features and benefits
adjustment, either up or down, will be greater the longer the time remaining
until the fixed maturity option's maturity date. Therefore, it is possible that
the market value adjustment could greatly reduce your value in the fixed
maturity options, particularly in the fixed maturity options with later
maturity dates.
We provide an illustration of the market adjusted amount of specified maturity
values, an explanation of how we calculate the market value adjustment, and
information concerning our general account and investments purchased with
amounts allocated to the fixed maturity options, in "More information" later in
this Prospectus. Appendix II at the end of this Prospectus provides an example
of how the market value adjustment is calculated.
SELECTING YOUR INVESTMENT METHOD
You must choose one of the following methods for selecting your investment
options:
o MAXIMUM INVESTMENT OPTIONS CHOICE. Under this method, you may allocate
contributions or transfer funds to any of the available investment options
listed in A and B in the investment options chart. You can make transfers
whenever you choose. However, there will be restrictions on the amount you can
transfer out of the guaranteed interest option listed in A.
o MAXIMUM TRANSFER FLEXIBILITY. Under this method, you may allocate
contributions or transfer funds to any of the available investment options
listed in A in the investment options chart and no transfer restrictions will
apply.
o TEMPORARY REMOVAL OF TRANSFER RESTRICTIONS THAT APPLY TO THE INVESTMENT
METHODS. From time to time, we may remove certain restrictions that apply to
your investment method. If we do so, we will tell you. We will also tell you at
least 45 days in advance of the day that we intend to reimpose the transfer
restrictions. When we reimpose the transfer restrictions that apply to your
investment method, amounts that are in any investment options that are not
available under your investment method can remain in these options, but you
will not be permitted to allocate new contributions or make additional
transfers (including through our rebalancing program) into these options.
- --------------------------------------------------------------------------------
INVESTMENT OPTIONS
- --------------------------------------------------------------------------------
A
- --------------------------------------------------------------------------------
O GUARANTEED INTEREST OPTION
- --------------------------------------------------------------------------------
DOMESTIC STOCKS INTERNATIONAL STOCKS
- --------------------------------------------------------------------------------
o AXA Premier VIP Health Care o AXA Premier VIP International Equity
o AXA Premier VIP Large Cap Core o EQ/Alliance Global
Equity o EQ/Alliance International
o AXA Premier VIP Large Cap Growth o EQ/Capital Guardian International
o AXA Premier VIP Large Cap Value o EQ/Emerging Markets Equity
o AXA Premier VIP Small/Mid Cap o EQ/International Equity Index
Growth o EQ/Putnam International Equity
o AXA Premier VIP Small/Mid Cap Value
o AXA Premier VIP Technology
o EQ/Aggressive Stock
o EQ/Alliance Common Stock
o EQ/Alliance Growth and Income
o EQ/Alliance Premier Growth
o EQ/Alliance Small Cap Growth
o EQ/Alliance Technology
o EQ/AXP New Dimensions
o EQ/AXP Strategy Aggressive
o EQ/Bernstein Diversified Value
o EQ/Calvert Socially Responsible
o EQ/Capital Guardian Research
o EQ/Capital Guardian U.S. Equity
o EQ/Equity 500 Index
o EQ/Evergreen Omega
o EQ/FI Mid Cap
o EQ/FI Small/Mid Cap Value
o EQ/Janus Large Cap Growth
o EQ/Lazard Small Cap Value
o EQ/Marsico Focus
o EQ/Mercury Basic Value Equity
o EQ/MFS Emerging Growth Companies
o EQ/MFS Investors Trust
o EQ/MFS Research
o EQ/Putnam Growth & Income Value
o EQ/Putnam Voyager
o EQ/Small Company Index
- --------------------------------------------------------------------------------
BALANCED/HYBRID
- --------------------------------------------------------------------------------
o EQ/Alliance Growth Investors o EQ/Balanced
- --------------------------------------------------------------------------------
B
- --------------------------------------------------------------------------------
FIXED INCOME
- --------------------------------------------------------------------------------
o AXA Premier VIP Core Bond o EQ/Alliance Quality Bond
o EQ/Alliance Intermediate Government o EQ/High Yield
Securities o EQ/J.P. Morgan Core Bond
o EQ/Alliance Money Market
- --------------------------------------------------------------------------------
FIXED MATURITY OPTIONS
- --------------------------------------------------------------------------------
The fixed maturity options are only available in states where approved.
Transfer restrictions apply as indicated above under "Fixed maturity
options and maturity dates."
Contract features and benefits 27
o PRINCIPAL ASSURANCE ALLOCATION
Under this allocation program you select a fixed maturity option. We specify
the portion of your initial contribution to be allocated to that fixed maturity
option in an amount that will cause the maturity value to equal the amount of
your entire initial contribution on the fixed maturity option's maturity date.
The maturity date you select generally may not be later than 10 years, or
earlier than 6 years from your contract date. You allocate the rest of your
contribution to the variable investment options however you choose.
For example, if your initial contribution is $10,000, and on February 15, 2002
you chose the fixed maturity option with a maturity date of June 15, 2011,
since the rate to maturity was 5.65% on February 15, 2002, we would have
allocated $5,987 to that fixed maturity option and the balance to your choice
of variable investment options. On the maturity date, your value in the fixed
maturity option would be $10,000.
The principal assurance allocation is only available for annuitant ages 75 or
younger when the contract is issued. If you are purchasing an Equitable Life
traditional IRA contract, before you select a maturity year that would extend
beyond the year in which you will reach age 70-1/2, you should consider whether
your value in the variable investment options, or your other traditional IRA
funds are sufficient to meet your required minimum distributions. See "Tax
information" later in this Prospectus. This feature is only available if the
fixed maturity option is available in your state.
ALLOCATING YOUR CONTRIBUTIONS
Once you have made your investment method choice, you may allocate your
contributions to one or more, or all of the investment options that you have
chosen, subject to any restrictions under the investment method you chose.
However, you may not allocate more than one contribution to any one fixed
maturity option. Allocations must be in whole percentages and you may change
your allocation percentages at any time. However, the total of your allocations
must equal 100%. Once your contributions are allocated to the investment
options, they become part of your account value. We discuss account value in
"Determining your contract's value." After your contract is issued, you may
request that we add or eliminate any variable investment options that result in
transfer restrictions. We reserve the right to deny your request. See
"Transferring your money among investment options" later in this Prospectus.
YOUR RIGHT TO CANCEL WITHIN A CERTAIN NUMBER OF DAYS
If for any reason you are not satisfied with your contract, you may return it
to us for a refund. To exercise this cancellation right you must mail the
contract directly to our processing office within 10 days after you receive it.
In some states, this "free look" period may be longer.
For contributions allocated to the variable investment options, your refund
will equal your contributions, reflecting any investment gain or loss that also
reflects the daily charges we deduct. For contributions allocated to the
guaranteed interest option, your refund will equal the amount of the
contributions but will not include interest. For contributions allocated to the
fixed maturity options, your refund will equal the amount of the contribution
allocated to the fixed maturity options reflecting any positive or negative
market value adjustments. Some states require that we refund the full amount of
your contribution (not including any investment gain or loss, interest, or
market value adjustment). For IRA contracts returned to us within seven days
after you receive it, we are required to refund the full amount of your
contribution.
We may require that you wait six months before you apply for a contract with us
again if:
o you cancel your contract during the free look period; or
o you change your mind before you receive your contract whether we have
received your contribution or not.
Please see "Tax information" later in this Prospectus for possible consequences
of cancelling your contract.
In addition to the cancellation right described above, if you fully or
partially convert an existing traditional IRA contract to a Standard Roth IRA,
you may cancel your Standard Roth IRA contract and return to a Traditional IRA
contract. Our processing office, or your financial professional, can provide
you with the cancellation instructions. Ask for the form entitled "EQUI-VEST(R)
Roth IRA Re-Characterization Form."
28 Contract features and benefits
2. Determining your contract's value
- --------------------------------------------------------------------------------
YOUR ACCOUNT VALUE AND CASH VALUE
Your "account value" is the total of the: (i) values you have allocated to the
variable investment options; (ii) the guaranteed interest option; and (iii) the
market adjusted amounts you have in the fixed maturity options. These amounts
are subject to certain fees and charges discussed under "Charges and expenses"
later in this Prospectus.
Your contract also has a "cash value." At any time before annuity payments
begin, your contract's cash value is equal to the account value, less: (i) any
applicable withdrawal charges and (ii) the total amount or a pro rata portion
of the annual administrative charge. Please see "Surrender of your contract to
receive its cash value" in "Accessing your money" later in this Prospectus.
YOUR CONTRACT'S VALUE IN THE VARIABLE INVESTMENT OPTIONS
Each variable investment option invests in shares of a corresponding portfolio.
Your value in each variable investment option is measured by "units." The value
of your units will increase or decrease as though you had invested it in the
corresponding portfolio's shares directly. Your value, however, will be reduced
by the amount of the fees and charges that we deduct under the contract.
- --------------------------------------------------------------------------------
Units measure your value in each variable investment option.
- --------------------------------------------------------------------------------
The unit value for each variable investment option depends on the investment
performance of that option minus daily charges for mortality and expense risks
and other expenses. On any day, your value in any variable investment option
equals the number of units credited to that option, adjusted for any units
purchased for or deducted from your contract under that option, multiplied by
that day's value for one unit. The number of your contract units in any
variable investment option does not change unless they are:
(i) increased to reflect additional contributions;
(ii) decreased to reflect a withdrawal (plus applicable withdrawal charges); or
(iii) increased to reflect a transfer into, or decreased to reflect a transfer
out of a variable investment option.
In addition, the annual administrative charge or third-party transfer or
exchange charge, will reduce the number of units credited to your contract. A
description of how unit values are calculated is found in the SAI.
YOUR CONTRACT'S VALUE IN THE GUARANTEED INTEREST OPTION
Your value in the guaranteed interest option at any time will equal: your
contributions and transfers to that option, plus interest, minus withdrawals
and transfers out of the option, and charges we deduct.
YOUR CONTRACT'S VALUE IN THE FIXED MATURITY OPTIONS
Your value in each fixed maturity option at any time before the maturity date
is the market adjusted amount in each option. This is equivalent to your fixed
maturity amount increased or decreased by the market value adjustment. Your
value, therefore, may be higher or lower than your contributions (less
withdrawals) accumulated at the rate to maturity. At the maturity date, your
value in the fixed maturity option will equal its maturity value.
Determining your contract's value 29
3. Transferring your money among investment options
- --------------------------------------------------------------------------------
TRANSFERRING YOUR ACCOUNT VALUE
At any time before the date annuity payments are to begin, you can transfer
some or all of your account value among the investment options, subject to the
following:
o You must transfer at least $300 of account value or, if less, the entire
amount in the investment option. We may waive the $300 requirement.
o You may not transfer to a fixed maturity option in which you already have
value.
o If the annuitant is age 76 or older, you must limit your transfers to fixed
maturity options with maturities of five years or less. You may not
transfer to a fixed maturity option if its maturity date is later than the
date annuity payments are to begin.
o If you make transfers out of a fixed maturity option other than at its
maturity date the transfer may cause a market value adjustment.
o If you choose the maximum investment options choice method for selecting
investment options, the maximum amount you may transfer in any contract
year from the guaranteed interest option to any other investment option is
(a) 25% of the amount you had in the guaranteed interest option on the last
day of the prior contract year or, if greater, (b) the total of all amounts
you transferred from the guaranteed interest option to any other investment
option in the prior contract year.
o If you transfer money from another financial institution into the
guaranteed interest option during your first contract year, and if you have
selected maximum investment options choice, you may, during the balance of
that contract year, transfer up to 25% of such initial guaranteed interest
option balance to any other investment option.
Subject to the terms of your contract, upon advance notice, we may change or
establish additional restrictions on transfers among the investment options. A
transfer request does not change your percentages for allocating current or
future contributions among the investment options.
You may request a transfer in writing or by telephone using TOPS or online
using EQAccess. You must send in all signed written requests directly to our
processing office. Transfer requests should specify:
(1) the contract number,
(2) the dollar amounts to be transferred, and
(3) the investment options to and from which you are transferring.
We will confirm all transfers in writing.
DISRUPTIVE TRANSFER ACTIVITY
You should note that the EQUI-VEST(R) contract is not designed for professional
"market timing" organizations, or other organizations or individuals engaging
in a market timing strategy, making programmed transfers, frequent transfers or
transfers that are large in relation to the total assets of the underlying
portfolio. These kinds of strategies and transfer activities are disruptive to
the underlying portfolios in which the variable investment options invest. If
we determine that your transfer patterns among the variable investment options
are disruptive to the underlying portfolios, we may, among other things,
restrict the availability of personal telephone requests, facsimile
transmissions, automated telephone services, Internet services or any
electronic transfer services. We may also refuse to act on transfer
instructions of an agent who is acting on behalf of one or more owners.
We currently consider transfers into and out of (or vice versa) the same
variable investment option within a five business day period as potentially
disruptive transfer activity. In order to prevent disruptive activity, we
monitor the frequency of transfers, including the size of transfers in relation
to portfolio assets, in each underlying portfolio, and we take appropriate
action, which may include the actions described above to restrict availability
of voice, fax and automated transaction services, when we consider the activity
of owners to be disruptive. We currently provide a letter to owners who have
engaged in such activity of our intention to restrict such services. However,
we may not continue to provide such letters. We may also, in our sole
discretion and without further notice, change what we consider disruptive
transfer activity, as well as change our procedures to restrict this activity.
AUTOMATIC TRANSFER OPTIONS
INVESTMENT SIMPLIFIER
You may choose from two automatic options for transferring amounts from the
guaranteed interest option to the variable investment options. The transfer
options are the "fixed-dollar option" and the "interest sweep." You may select
one or the other but not both.
FIXED-DOLLAR OPTION. Under this option, you may elect to have a fixed-dollar
amount transferred out of the guaranteed interest option and into the variable
investment options of your choice on a monthly basis. You can specify the
number of monthly transfers or instruct us to continue to make monthly
transfers until all available amounts in the guaranteed interest option have
been transferred out.
In order to elect the fixed-dollar option, you must have a minimum of $5,000 in
the guaranteed interest option on the date we receive your election form at our
processing office. You also must elect to transfer at least $50 per month. The
fixed-dollar option is subject to the guaranteed interest option transfer
limitation described above.
INTEREST SWEEP. Under the interest sweep, we will make transfers on a monthly
basis from amounts in the guaranteed interest option. The amount we will
transfer will be the interest credited to amounts you have in the guaranteed
interest option from the last business day of the prior month to the last
business day of the current month. You must have at least $7,500 in the
guaranteed interest option on the date we receive your election and on the last
business day of each month thereafter to participate in the interest sweep
option.
30 Transferring your money among investment options
The fixed-dollar option and interest sweep feature are forms of dollar-cost
averaging. Dollar-cost averaging allows you to gradually allocate amounts to
the variable investment options by periodically transferring approximately the
same dollar amount to the variable investment options you select. This will
cause you to purchase more units if the unit's value is low and fewer units if
the unit's value is high. Therefore, you may get a lower average cost per unit
over the long term. This plan of investing, however, does not guarantee that
you will earn a profit or be protected against losses
WHEN YOUR PARTICIPATION IN THE INVESTMENT SIMPLIFIER WILL END. Your
participation in the investment simplifier option will end:
o Under the fixed-dollar option, when either the number of designated monthly
transfers have been completed or the amount you have available in the
guaranteed interest option has been transferred out.
o Under the interest sweep, when the amount you have in the guaranteed
interest option falls below $7,500 (determined on the last business day of
the month) for two months in a row.
o Under either option, on the date we receive at our processing office, your
written request to cancel automatic transfers, or on the date your contract
terminates.
REBALANCING YOUR ACCOUNT VALUE
We currently offer a rebalancing program that you can use to automatically
reallocate your account value among the variable investment options. You must
tell us:
(a) the percentage you want invested in each variable investment option (whole
percentages only), and
(b) how often you want the rebalancing to occur (quarterly, semiannually, or
annually).
While your rebalancing program is in effect, we will transfer amounts among
each variable investment option so that the percentage of your account value
that you specify is invested in each option at the end of each rebalancing
date. Your entire account value in the variable investment options must be
included in the rebalancing program.
- --------------------------------------------------------------------------------
Rebalancing does not assure a profit or protect against loss. You should
periodically review your allocation percentages as your needs change. You may
want to discuss the rebalancing program with your financial professional and/or
financial advisor before electing the program.
- --------------------------------------------------------------------------------
You may elect the rebalancing program at any time. To be eligible, you must
have at least $5,000 of account value in the variable investment options.
Rebalancing is not available for amounts you have allocated in the guaranteed
interest option or in the fixed maturity options.
If you request a transfer while the rebalancing program is in effect, we will
process the transfer as requested. The rebalancing program will then remain in
effect unless you request in writing that it be cancelled.
You may change your allocation instructions or cancel the program at any time.
Transferring your money among investment options 31
4. Accessing your money
- --------------------------------------------------------------------------------
WITHDRAWING YOUR ACCOUNT VALUE
You have several ways to withdraw your account value before annuity payments
begin. The table below shows the methods available under each type of contract.
More information follows the table. For the tax consequences of taking
withdrawals, see "Tax information" later in this Prospectus.
- --------------------------------------------------------------------------------
METHOD OF WITHDRAWAL
- --------------------------------------------------------------------------------
MINIMUM
CONTRACT LUMP SUM SYSTEMATIC DISTRIBUTION
- --------------------------------------------------------------------------------
NQ Yes Yes No
- --------------------------------------------------------------------------------
Traditional IRA Yes Yes Yes
- --------------------------------------------------------------------------------
Standard Roth
IRA Yes Yes No
- --------------------------------------------------------------------------------
LUMP SUM WITHDRAWALS
(All contracts)
You may take lump sum withdrawals from your account value at any time while the
annuitant is living and before annuity payments begin. The minimum amount you
may withdraw at any time is $300. If you request a withdrawal that leaves your
account value less than $500, we may treat it as a request to surrender the
contract for its cash value. See "Surrender of your contract to receive its
cash value" below.
Lump sum withdrawals in excess of the 10% free withdrawal amount may be subject
to a withdrawal charge. (See "10% free withdrawal amount" in "Charges and
expenses" later in this Prospectus.)
SYSTEMATIC WITHDRAWALS
(All contracts)
If you have at least $20,000 of account value in the variable investment
options and the guaranteed interest option, you may elect systematic
withdrawals. You may elect to have your systematic withdrawals made on a
monthly or quarterly basis. The minimum amount you may take for each withdrawal
is $250. We will make the withdrawal on any day of the month that you select as
long as it is not later than the 28th day of the month. If you do not select a
date, your withdrawals will be made on the first day of the month. A check for
the amount of the withdrawal will be mailed to you or, if you prefer, we will
electronically transfer the money to your checking account.
You may withdraw either the amount of interest earned in the guaranteed
interest option or a fixed-dollar amount from either the variable investment
options or the guaranteed interest option. If you elect the interest option, a
minimum of $20,000 must be maintained in the guaranteed interest option. If you
elect the fixed-dollar option, you do not have to maintain a minimum amount.
If you choose to have a fixed dollar amount taken from the variable investment
options, you may elect to have the amount of the withdrawal subtracted from
your account value in one of three ways:
(1) pro rata from more than one variable investment option (without using up
your total value in those options); or
(2) pro rata from more than one variable investment option (until your value in
those options is used up); or
(3) you may specify a dollar amount from only one variable investment option.
You can cancel the systematic withdrawal option at any time.
Amounts withdrawn in excess of the 10% free withdrawal amount may be subject to
a withdrawal charge.
LIFETIME MINIMUM DISTRIBUTION WITHDRAWALS
(Traditional IRA contracts -- See "Tax information" later in this Prospectus)
We offer the minimum distribution withdrawal option to help you meet or exceed
lifetime required minimum distributions under federal income tax rules. You may
elect this option in the year in which you reach age 70-1/2 and have account
value in the variable investment options and the guaranteed interest option of
at least $2,000. The minimum amount we will pay out is $300, or if less, your
account value. If your account value is less than $500 after the withdrawal, we
may terminate your contract and pay you its cash value. You may elect the
method you want us to use to calculate your minimum distribution withdrawal
from the choices we offer. Currently, minimum distribution withdrawal payments
will be made annually. We will calculate your payment each year based on your
account value at the end of each prior calendar year, based on the method you
choose. See "Required minimum distributions" under "Individual Retirement
Arrangements ("IRAs")" in "Tax information" later in this Prospectus.
Currently, we do not impose a withdrawal charge on minimum distribution
withdrawals that are calculated based on the proposed revisions to the minimum
distribution rules and your EQUI-VEST(R) contract account value. (See "Required
minimum distributions" in "Tax Information" later in this Prospectus.) The
minimum distribution withdrawal will be taken into account in determining if
any subsequent withdrawal taken in the same contract year exceeds the 10% free
withdrawal amount.
- --------------------------------------------------------------------------------
We will send to Traditional IRA owners a form outlining the minimum
distribution options available in the year you reach age 70-1/2 (if you have not
begun your annuity payments before that time).
- --------------------------------------------------------------------------------
HOW WITHDRAWALS ARE TAKEN FROM YOUR ACCOUNT VALUE
Unless you specify otherwise, we will subtract your withdrawals on a pro rata
basis from your values in the variable investment options and the guaranteed
interest option. If there is insufficient value or no value in the variable
investment options and guaranteed interest option, any additional amount of the
withdrawal required or the total amount of
32 Accessing your money
the withdrawal will be withdrawn from the fixed maturity options in order of
the earliest maturity date(s). A market value adjustment may apply if
withdrawals are taken from the fixed maturity options.
AUTOMATIC DEPOSIT SERVICE
If you are receiving required minimum distribution payments from a traditional
IRA contract, you may use our automatic deposit service.
Under this service, we will automatically deposit the required minimum
distribution payment from your traditional IRA contract directly into an
EQUI-VEST(R) NQ or Roth IRA or an EQUI-VEST(R) Express (if available in your
state) NQ or Roth IRA contract, according to your allocation instructions. You
generally cannot contribute to a Roth IRA unless you have earned income or
compensation for the year of the contribution. See "Tax Information -- Roth
IRAs" later in this Prospectus.
DEPOSIT OPTION FOR NQ CONTRACTS ONLY
You can elect the deposit option for your benefit while you live, or for the
benefit of your beneficiary.
Proceeds from your NQ contract can be deposited with us for a period you select
(including one for as long as the annuitant lives). We will hold the amounts in
our general account. We will credit interest on the amounts at a guaranteed
rate for the specified period. We will pay out the interest on the amount
deposited at least once each year.
If you elect this option for your benefit, you deposit the amount with us that
you would otherwise apply to an annuity payout option. If you elect this option
for your beneficiary before the annuitant's death, death benefit proceeds can
be left on deposit with us subject to certain restrictions, instead of being
paid out to the beneficiary.
Other restrictions apply to the deposit option. Your financial professional can
provide more information about this option, or you may call our processing
office.
SURRENDER OF YOUR CONTRACT TO RECEIVE ITS CASH VALUE
You may surrender your contract to receive its cash value at any time while the
annuitant is living and before you begin to receive annuity payments. For a
surrender to be effective, we must receive your written request and your
contract at our processing office. We will determine your cash value on the
date we receive the required information. All benefits under the contract will
terminate as of that date.
You may receive your cash value in a single sum payment or apply it to one or
more of the annuity payout options. See "Your annuity payout options" below. We
will usually pay the cash value within seven calendar days, but we may delay
payment as described in "When to expect payments" below. For the tax
consequences of surrenders, see "Tax information" later in this Prospectus.
TERMINATION
We may terminate your contract and pay you the cash value if:
(1) your account value is less than $500 and you have not made contributions to
your contract for a period of three years; or
(2) you request a lump sum withdrawal that reduces your account value to an
amount less than $500; or
(3) you have not made any contributions within 120 days from your contract
date.
WHEN TO EXPECT PAYMENTS
Generally, we will fulfill requests for payments out of the variable investment
options within seven calendar days after the date of the transaction to which
the request relates. These transactions may include applying proceeds to a
variable annuity payout option, payment of a death benefit, payment of any
amount you withdraw (less any withdrawal charge) and, upon surrender or
termination, payment of the cash value. We may postpone such payments or
applying proceeds for any period during which:
(1) the New York Stock Exchange is closed or restricts trading,
(2) sales of securities or determination of the fair value of a variable
investment option's assets is not reasonably practicable because of an
emergency, or
(3) the SEC, by order, permits us to defer payment to protect people remaining
in the variable investment options.
We can defer payment of any portion of your values in the guaranteed interest
option and the fixed maturity options (other than for death benefits) for up to
six months while you are living. We also may defer payments for a reasonable
amount of time (not to exceed 15 days) while we are waiting for a contribution
check to clear.
All payments are made by check and are mailed to you (or the payee named in a
tax-free exchange) by U.S. mail, unless you request that we use an express
delivery service at your expense.
YOUR ANNUITY PAYOUT OPTIONS
EQUI-VEST(R) offers you several choices of annuity payout options. Some enable
you to receive fixed annuity payments and others enable you to receive variable
annuity payments.
You can choose from among the annuity payout options listed below. Restrictions
may apply, depending on the type of contract you own or the annuitant's age at
contract issue.
ANNUITY PAYOUT OPTIONS
You can choose from among the following annuity payout options:
- --------------------------------------------------------------------------------
Fixed annuity payout options o Life annuity
o Life annuity with period
certain
o Life annuity with refund
certain
o Period certain annuity
- --------------------------------------------------------------------------------
Variable Immediate Annuity payout o Life annuity (not available in
options New York)
o Life annuity with period
certain
- --------------------------------------------------------------------------------
o Life annuity: An annuity that guarantees payments for the rest of the
annuitant's life. Payments end with the last monthly payment
Accessing your money 33
before the annuitant's death. Because there is no continuation of benefits
following the annuitant's death with this payout option, it provides the
highest monthly payment of any of the life annuity options, so long as the
annuitant is living.
o Life annuity with period certain: An annuity that guarantees payments for
the rest of the annuitant's life. If the annuitant dies before the end of a
selected period of time ("period certain"), payments continue to the
beneficiary for the balance of the period certain. The period certain
cannot extend beyond the annuitant's life expectancy or the joint life
expectancy of you and your spouse. A life annuity with a period certain is
the form of annuity under the contracts that you will receive if you do not
elect a different payout option. In this case the period certain will be
based on the annuitant's age and will not exceed 10 years or the
annuitant's life expectancy.
o Life annuity with refund certain: An annuity that guarantees payments for
the rest of the annuitant's life. If the annuitant dies before the amount
applied to purchase the annuity option has been recovered, payments to the
beneficiary will continue until that amount has been recovered. This payout
option is available only as a fixed annuity.
o Period certain annuity: An annuity that guarantees payments for a specific
period of time, usually 5, 10, 15, or 20 years. This guarantee period may
not exceed the annuitant's life expectancy. This option does not guarantee
payments for the rest of the annuitant's life. It does not permit any
repayment of the unpaid principal, so you cannot elect to receive part of
the payments as a single sum payment with the rest paid in monthly annuity
payments. Currently, this payout option is available only as a fixed
annuity.
The life annuity, life annuity with period certain, and life annuity with
refund certain payout options are available on a single life or joint and
survivor life basis. The joint and survivor life annuity guarantees payments
for the rest of the annuitant's life and, after the annuitant's death, to the
survivor for life. We may offer other payout options not outlined here. Your
financial professional can provide details.
FIXED ANNUITY PAYOUT OPTION
With fixed annuities, we guarantee fixed annuity payments that will be based
either on the tables of guaranteed annuity payments in your contract or on our
then current annuity rates, whichever is more favorable for you.
VARIABLE IMMEDIATE ANNUITY PAYOUT OPTIONS
Variable Immediate Annuities are described in a separate prospectus that is
available from your financial professional. Before you select a Variable
Immediate Annuity payout option, you should read the prospectus which contains
important information that you should know.
Variable annuities may be funded through your choice of variable investment
options investing in portfolios of EQ Advisors Trust. The contract also offers
a fixed annuity option that can be elected in combination with the variable
annuity payout options. The amount of each variable annuity payment will
fluctuate, depending upon the performance of the variable investment options,
and whether the actual rate of investment return is higher or lower than an
assumed base rate.
We also make the variable annuity payout options available to owners of our
single premium deferred annuity ("SPDA") contract and certain other combination
fixed and variable annuity contracts. We may offer other payout options not
outlined here. Your financial professional can provide details.
SELECTING AN ANNUITY PAYOUT OPTION
When you select a payout option, we will issue you a separate written agreement
confirming your right to receive annuity payments. We require you to return
your contract before annuity payments begin. Unless you choose a different
payout option, we will pay annuity payments under a life annuity with a period
certain of 10 years. You choose whether these payments will be either fixed or
variable.
You can choose the date annuity payments are to begin. You can change the date
your annuity payments are to begin anytime before that date as long as you do
not choose a date later than the 28th day of any month. Also, that date may not
be later than the contract date anniversary that follows the annuitant's 90th
birthday. This may be different in some states.
Before your annuity payments are to begin, we will notify you by letter that
the annuity payout options are available. Once you have selected a payout
option and payments have begun, no change can be made, other than transfers (if
permitted in the future) among the variable investment options if a variable
annuity is selected.
The amount of the annuity payments will depend on:
(1) the amount applied to purchase the annuity;
(2) the type of annuity chosen, and whether it is fixed or variable. If you
choose a variable annuity, we use an assumed base rate of 5% to calculate
the level of payments. However, in states where that rate is not permitted
the assumed base rate will be 3-1/2%. We provide information about the
assumed base rate in the SAI;
(3) in the case of a life annuity, the annuitant's age (or the annuitant's and
joint annuitant's ages); and
(4) in certain instances, the sex of the annuitant(s).
If, at the time you elect a payout option, the amount to be applied is less
than $2,000 or the initial payment under the form elected is less than $20
monthly, we reserve the right to pay the account value in a single sum rather
than as payments under the payout option chosen.
34 Accessing your money
5. Charges and expenses
- --------------------------------------------------------------------------------
CHARGES THAT EQUITABLE LIFE DEDUCTS
We deduct the following charges each day from the net assets of each variable
investment option. These charges are reflected in the unit values of each
variable investment option:
o A mortality and expense risks charge
o A charge for other expenses
We deduct the following charges from your account value. When we deduct these
charges from your variable investment options, we reduce the number of units
credited to your contract:
o On the last day of the contract year an annual administrative charge, if
applicable
o Charge for third-party transfer or exchange (series 300 only)
o At the time you make certain withdrawals or surrender your contract, or
your contract is terminated -- a withdrawal charge
o At the time annuity payments are to begin -- charges designed to
approximate certain taxes that may be imposed on us, such as premium taxes
in your state. An annuity administrative fee may also apply
More information about these charges appears below. The charges differ
depending on which contract series you purchase.
We will not increase these charges for the life of your contract, except as
noted below. We may reduce certain charges under group or sponsored
arrangements. See "Group or sponsored arrangements" below.
To help with your retirement planning, we may offer other annuities with
different charges, benefits and features. Please contact your financial
professional for more information.
CHARGES UNDER THE CONTRACTS
MORTALITY AND EXPENSE RISKS CHARGE
We deduct a daily charge from the net assets in each variable investment option
to compensate us for mortality and expense risks. The mortality risk we assume
is the risk that annuitants as a group will live for a longer time than our
actuarial tables predict. If that happens, we would be paying more in annuity
benefits than we planned. For series 300, we may change the actuarial basis for
our guaranteed annuity payment tables, but only for new contributions and only
at five year intervals from the contract date. Lastly, we assume a mortality
risk to the extent that at the time of death, the guaranteed death benefit
exceeds the cash value of the contract.
The expense risk we assume is the risk that it will cost us more to issue and
administer the contracts than we expect.
To the extent that the mortality and expense risk charges are not needed to
cover the actual expenses incurred, they may be considered an indirect
reimbursement for certain sales and promotional expenses relating to the
contracts.
For each series the daily charge is a percentage of net assets that is
equivalent to an annual rate of:
o 1.10% in each variable investment option under series 300 contracts.
o 0.65% under series 100 contracts in the EQ/Alliance Money Market,
EQ/Balanced and EQ/Alliance Common Stock options.
o 0.50% under series 100 contracts for all other variable investment options.
CHARGE FOR OTHER EXPENSES
We deduct this daily charge from the net assets in each variable investment
option. This charge, together with the annual administrative charge described
below, is for providing administrative and financial accounting services under
the contracts.
The daily charge is equivalent to a maximum annual rate of:
(i) under series 100 contracts, 0.84% of the net assets in each variable
investment option. 0.60% of this charge is designed to reimburse us for
research and development costs and for administrative expenses that are not
covered by the annual administrative charge described below. The remaining
0.24% is to reimburse us for the cost of financial accounting services we
provide under the contracts;
(ii) under series 300 contracts, 0.25% of the net assets in each variable
investment option. For all variable investment options other than the
EQ/Alliance Money Market, EQ/Alliance Common Stock and EQ/Balanced options,
we currently deduct 0.24% of the net assets. We may, upon advance notice to
you, increase the charge to 0.25% of the net assets for these variable
investment options.
MAXIMUM TOTAL CHARGES
Under series 100 contracts for the EQ/Alliance Money Market, EQ/Balanced,
EQ/Alliance Common Stock and EQ/Aggressive Stock options, the combined amount
of the Separate Account A charges to these variable investment options and EQ
Advisors Trust charges for investment advisory fees and direct operating
expenses may not exceed a total annual rate of 1.75% of the value of the assets
held in each of those variable investment options.
Total Separate Account A annual expenses of the variable investment options
(not including the Trusts fees and other expenses) are guaranteed not to exceed
a total annual rate of (i) 1.35% for series 300 and (ii) 1.49% for series 100
for the EQ/Balanced, EQ/Alliance Common Stock and EQ/Alliance Money Market
options; and (iii) for series 100, an annual rate of 1.34% for all the other
options not listed in (ii).
ANNUAL ADMINISTRATIVE CHARGE
We deduct an administrative charge from your account value on the last day of
each contract year. We will deduct a pro rata portion of the
Charges and expenses 35
charge if you surrender your contract, elect an annuity payout option, or the
annuitant dies during the contract year. The charge is deducted pro rata from
the variable investment options and the guaranteed interest option. If those
amounts are insufficient, we will make up the required amounts from the fixed
maturity options to the extent you have value in those options, unless you tell
us otherwise. Charges deducted from the fixed maturity options are considered
withdrawals and, as such, will result in a market value adjustment.
Under series 300, during the first two contract years, the charge is equal to
$30 or, if less, 2% of your current account value. The charge is $30 for
contract years three and later. We may increase this charge if our
administrative costs rise, but the charge will never exceed $65 annually. We
waive the charge if your account value is at least $25,000 for an NQ contract
or $20,000 for an IRA contract. We reserve the right to deduct this charge on a
quarterly, rather than annual basis.
Under series 100, the charge is equal to $30 or, if less, 2% of the current
account value plus any amount previously withdrawn during that contract year.
We waive this charge if your account value is at least $10,000.
We currently waive the annual administrative charge that would otherwise be
deducted in the next contract year under any individually owned EQUI-VEST(R)
contract/certificate having an account value that, when combined with the
account value of other EQUI-VEST(R) contracts/certificates owned by the same
person, exceeds $100,000 in the aggregate (as determined in February of each
year). This does not apply to EQUI-VEST(R) contracts/certificates owned by
different members of the same household. We may change or discontinue this
practice at any time without prior notice.
CHARGE FOR THIRD-PARTY TRANSFER OR EXCHANGE
Under series 300, we impose a charge for making a direct transfer of amounts
from your contract to a third party, such as in the case of a
trustee-to-trustee transfer for an IRA contract, or if you request that your
contract be exchanged for a contract issued by another insurance company. In
either case, we will deduct from your account value any withdrawal charge that
applies and a charge of $25 for each direct transfer or exchange. We reserve
the right to increase this charge to a maximum of $65.
WITHDRAWAL CHARGE
A withdrawal charge may apply in three circumstances: (1) you make one or more
withdrawals during a contract year; (2) you surrender your contract to receive
its cash value; or (3) we terminate your contract. The amount of the charge
will depend on whether the free withdrawal amount applies, and the availability
of one or more exceptions.
In order to give you the exact dollar amount of the withdrawal you request, we
deduct the amount of the withdrawal and the amount of the withdrawal charge
from your account value. Any amount deducted to pay withdrawal charges is also
subject to a withdrawal charge. We deduct the withdrawal amount and the
withdrawal charge pro rata from the variable investment options and the
guaranteed interest option. If those amounts are insufficient, we will make up
the required amounts from the fixed maturity options with the earliest
maturities first. If we deduct all or a portion of the withdrawal charge from
the fixed maturity options, a market value adjustment may apply.
o FOR SERIES 100 NQ CONTRACTS AND ALL SERIES 300 CONTRACTS
The amount of the withdrawal charge we deduct is equal to 6% of contributions
withdrawn that were made in the current and five prior contract years measured
from the date of the withdrawal. In the case of surrenders, we will pay you the
greater of (i) the account value after any withdrawal charge has been imposed
(cash value), or (ii) the free withdrawal amount plus 94% of the remaining
account value.
For purposes of calculating the withdrawal charge, amounts withdrawn up to the
10% free withdrawal amount are not considered a withdrawal of any contribution.
We also treat contributions that have been invested the longest as being
withdrawn first. We treat contributions as withdrawn before earnings for
purposes of calculating the withdrawal charge. However, the federal income tax
rules treat earnings under most NQ contracts as withdrawn first. See "Tax
information" later in this Prospectus.
For series 300 contracts, we reserve the right to change the amount of the
withdrawal charge, but it will not exceed 6% of the contributions withdrawn.
Any change would not be unfairly discriminatory.
o FOR SERIES 100 TRADITIONAL IRA AND STANDARD ROTH IRA
The withdrawal charge equals a percentage of the amount withdrawn. The
percentage that applies depends on the contract year in which the withdrawal is
made, according to the following table:
- -----------------------------------------
CONTRACT YEAR(S) CHARGE
- -----------------------------------------
1 through 5 6%*
6 through 8 5
9 4
10 3
11 2
12 1
13 and later 0
- -----------------------------------------
* This percentage may be reduced at older ages for certain contracts. Your
Equitable associate can provide further details about the contract series
you own.
The total of all withdrawal charges assessed will not exceed 8% of all
contributions made during the current contract year and the nine contract years
before the withdrawal is made.
We reserve the right to reduce or waive the withdrawal charge including
transfers to a Traditional IRA and Standard Roth IRA from another EQUI-VEST(R)
contract. Any such charge will not be unfairly discriminatory. The withdrawal
charge may be reduced in order to comply with any state law requirement.
WHEN WITHDRAWAL CHARGES DO NOT APPLY
o 10% FREE WITHDRAWAL AMOUNT. Each contract year you can withdraw up to 10%
of your account value without paying a withdrawal charge. The 10% free
withdrawal amount is determined using your account value at the time you
request a withdrawal, minus any other withdrawals made during the contract
year.
o FOR SERIES 100 CONTRACTS
(i) For NQ contracts, the withdrawal charge does not apply if:
36 Charges and expenses
o the annuitant dies and a death benefit is payable to the beneficiary; or
o we receive a properly completed election form providing for the account
value to be used to buy a life annuity payout option.
(ii) For a Traditional IRA and Standard Roth IRA:
o The 10% free withdrawal amount described above will be available after the
third contract year; or
o after five contract years and the annuitant is at least age 59-1/2; or
o if you request a refund of an excess contribution within one month of the
date on which the contribution is made; or
o the annuitant dies and the death benefit is made available to the
beneficiary; or
o after five contract years and the annuitant is at least age 55 and the
amount withdrawn is used to purchase from us a period certain annuity that
extends beyond the annuitant's age 59-1/2 and allows no prepayment; or
o after three contract years and the amount withdrawn is used to purchase
from us a period certain annuity for a term of at least 10 years and allows
no prepayment; or
o if the amount withdrawn is applied to the election of a life contingent
annuity payout option.
o FOR SERIES 300 CONTRACTS
(i) Death or purchase of annuity. The withdrawal charge does not apply if:
o the annuitant dies and a death benefit is payable to the beneficiary; or
o we receive a properly completed election form providing for the account
value to be used to buy a life contingent annuity or a non-life annuity
with a period certain for a term of at least ten years.
(ii) Disability, terminal illness, or confinement to nursing home. The
withdrawal charge also does not apply if:
(a) The annuitant has qualified to receive Social Security disability benefits
as certified by the Social Security Administration; or
(b) We receive proof satisfactory to us (including certification by a licensed
physician) that the annuitant's life expectancy is six months or less; or
(c) The annuitant has been confined to a nursing home for more than 90 days (or
such other period, as required in your state) as verified by a licensed
physician. A nursing home for this purpose means one that is (a) approved
by Medicare as a provider of skilled nursing care service, or (b) licensed
as a skilled nursing home by the state or territory in which it is located
(it must be within the United States, Puerto Rico, U.S. Virgin Islands, or
Guam) and meets all of the following:
- -- its main function is to provide skilled, intermediate, or custodial nursing
care;
- -- it provides continuous room and board to three or more persons;
- -- it is supervised by a registered nurse or licensed practical nurse;
- -- it keeps daily medical records of each patient;
- -- it controls and records all medications dispensed; and
- -- its primary service is other than to provide housing for residents.
Some states may not permit us to waive the withdrawal charge in the above
circumstances, or may limit the circumstances for which the withdrawal charge
may be waived. Your financial professional can provide more information or you
may contact our processing office.
(iii) For Traditional IRA and Standard Roth IRA contracts the withdrawal charge
also does not apply:
o after six contract years if the annuitant is at least age 59-1/2; or
o if you request a refund of a contribution in excess of amounts allowed to
be contributed under the federal income tax rules within one month of the
date on which you made the contribution.
CHARGES FOR STATE PREMIUM AND OTHER APPLICABLE TAXES
We deduct a charge designed to approximate certain taxes that may be imposed on
us, such as premium taxes in your state. Generally, we deduct the charge from
the amount applied to provide an annuity payout option. The current tax charge
that might be imposed varies by state and ranges from 0% to 3.5%. (The rate is
1% in Puerto Rico.)
VARIABLE IMMEDIATE ANNUITY PAYOUT OPTION ADMINISTRATIVE FEE
We deduct a fee of up to $350 from the amount to be applied to the Variable
Immediate Annuity payout option.
CHARGES THAT THE TRUSTS DEDUCT
The Trusts deduct charges for the following types of fees and expenses:
o Investment advisory fees ranging from 0.25% to 1.20%.
o 12b-1 fees of 0.25% for Class IB/B shares.
o Operating expenses, such as trustees' fees, independent auditors' fees,
legal counsel fees, administrative service fees, custodian fees, and
liability insurance.
o Investment-related expenses, such as brokerage commissions.
These charges are reflected in the daily share price of each portfolio. Since
shares of each Trust are purchased at their net asset value, these fees and
expenses are, in effect, passed on to the variable investment options and are
reflected in their unit values. For more information about these charges,
please refer to the prospectus for the Trusts following this prospectus.
GROUP OR SPONSORED ARRANGEMENTS
For certain group or sponsored arrangements, we may reduce the withdrawal
charge or the mortality and expense risks charge, or change the minimum initial
contribution requirements. We also may change the minimum death benefit. Group
arrangements include those in which a trustee or an employer, for example,
purchases contracts covering a group of individuals on a group basis. Group
Charges and expenses 37
arrangements are not available for Traditional IRA and Roth IRA contracts.
Sponsored arrangements include those in which an employer allows us to sell
contracts to its employees or retirees on an individual basis.
Our costs for sales, administration, and mortality generally vary with the size
and stability of the group or sponsoring organization, among other factors. We
take all these factors into account when reducing charges. To qualify for
reduced charges, a group or sponsored arrangement must meet certain
requirements, such as requirements for size and number of years in existence.
Group or sponsored arrangements that have been set up solely to buy contracts
or that have been in existence less than six months will not qualify for
reduced charges.
We also may establish different rates to maturity for the fixed maturity
options under different classes of contracts for group or sponsored
arrangements.
We will make these and any similar reductions according to our rules in effect
when we approve a contract for issue. We may change these rules from time to
time. Any variation will reflect differences in costs or services and will not
be unfairly discriminatory.
Group or sponsored arrangements may be governed by federal income tax rules,
the Employee Retirement Income Security Act of 1974, or both. We make no
representations with regard to the impact of these and other applicable laws on
such programs. We recommend that employers, trustees, and others purchasing or
making contracts available for purchase under such programs seek the advice of
their own legal and benefits advisers.
OTHER DISTRIBUTION ARRANGEMENTS
We may reduce or eliminate charges when sales are made in a manner that results
in savings of sales and administrative expenses, such as sales through persons
who are compensated by clients for recommending investments and who receive no
commission or reduced commissions in connection with the sale of the contracts.
We will not permit a reduction or elimination of charges where it will be
unfairly discriminatory.
38 Charges and expenses
6. Payment of death benefit
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YOUR BENEFICIARY AND PAYMENT OF BENEFIT
You designate your beneficiary when you apply for your contract. You may change
your beneficiary at any time. The change will be effective on the date the
written request for the change is received in our processing office. We are not
responsible for any beneficiary change request that we do not receive. We will
send you a written confirmation when we receive your request.
The death benefit is equal to the greater of (i) your account value (without
adjustment for any otherwise applicable negative market value adjustment) as of
the date we receive satisfactory proof of the annuitant's death, any required
instructions for the method of payment, information and forms necessary to
effect payment or (ii) the "minimum death benefit." The minimum death benefit
is equal to your total contributions, less withdrawals, withdrawal charges, and
taxes that apply.
If you have transferred the value of another annuity contract that we issue to
your EQUI-VEST(R) contract, the value of the other contract's minimum death
benefit calculated as of the time of the transfer will be included in the total
contributions for the purpose of calculating the minimum death benefit.
EFFECT OF THE ANNUITANT'S DEATH
If the annuitant dies before the annuity payments begin, we will pay the death
benefit to your beneficiary.
Generally, the death of the annuitant terminates the contract. However, if you
are the owner and the annuitant and your spouse is the sole primary beneficiary
the contract can be continued as follows:
SUCCESSOR OWNER AND ANNUITANT: TRADITIONAL IRA, NQ AND ROTH IRA CONTRACTS FOR
BOTH SERIES. If you are the owner and annuitant and your spouse is the sole
primary beneficiary, your spouse may elect upon your death, to continue the
contract as the owner/annuitant and no death benefit is payable until the
surviving spouse's death. This election may not be approved in your state. If
your surviving spouse decides to continue the contract, as of the date we
receive satisfactory proof of death, any required instructions, information and
forms necessary to effect the successor owner/annuitant feature, we will
increase the account value to equal your minimum death benefit, if such death
benefit is greater than such account value. The increase in the account value
will be allocated to the investment options according to the allocation
percentages we have on file for your contract. Thereafter, for series 300,
withdrawal charges will no longer apply to contributions made before your
death. Withdrawal charges will apply if additional contributions are made.
These additional contributions will be withdrawn only after all other amounts
have been withdrawn. For series 100 IRA contracts, withdrawal charges will no
longer apply and additional contributions may no longer be made.
WHEN AN NQ CONTRACT OWNER DIES BEFORE THE ANNUITANT
Under certain conditions after the original owner's death, the owner changes
for purposes of receiving federal tax law required distributions from your
contract. When you are not the annuitant under an NQ contract and you die
before annuity payments begin, unless you specify otherwise, we will
automatically make the beneficiary your successor owner. If you do not want
this beneficiary also to be the successor owner, you should name a specific
successor owner. You may name a successor at any time by sending satisfactory
notice to our processing office.
Unless the surviving spouse of the owner who has died is the successor owner
for this purpose, the entire interest in the contract must be distributed under
the following rules:
o The cash value of the contract must be fully paid to the successor owner
(new owner) within five years after your death.
o The successor owner may instead elect to receive the cash value as a life
annuity (or payments for a period certain of not longer than the new
owner's life expectancy). Payments must begin within one year after the
non-annuitant owner's death. Unless this alternative is elected, we will
pay any cash value five years after your death.
If the surviving spouse is the successor owner, the spouse may elect to
continue the contract. No distributions are required as long as the surviving
spouse and annuitant are living.
HOW DEATH BENEFIT PAYMENT IS MADE
We will pay the death benefit to the beneficiary in the form of the annuity
payout option you have chosen. If you have not chosen an annuity payout option
as of the time of the annuitant's death, the beneficiary will receive the death
benefit in a single sum. However, subject to any exceptions in the contract,
our rules and any applicable requirements under federal income tax rules, the
beneficiary may elect to apply the death benefit to one or more annuity payout
options we offer at the time. See "Your annuity payout options" under
"Accessing your money" earlier in this prospectus. Please note that if you are
both the contract owner and the annuitant, you may elect only a life annuity or
an annuity that does not extend beyond the life expectancy of the beneficiary.
Single sum payments generally are paid through the Equitable Life Access
Account(TM), an interest bearing account with check writing privileges. The
Equitable Life Access Account(TM) is part of Equitable Life's general account.
Beneficiaries have immediate access to the proceeds by writing a check on the
account. We pay interest from the date the single sum is deposited into the
Access Account until the account is closed.
BENEFICIARY CONTINUATION OPTION UNDER SERIES 100 AND 300 TRADITIONAL IRA AND
ROTH IRA
Upon your death under a Traditional IRA or Roth IRA contract, your beneficiary
may generally elect to keep the contract in your name and
Payment of death benefit 39
receive distributions under the contract instead of receiving the death benefit
in a single sum. In order to elect this option, the beneficiary must be an
individual. Certain trusts with only individual beneficiaries will be treated
as individuals. The minimum amount that is required in order to elect the
beneficiary continuation option is $5,000 for each beneficiary. We require this
election to be made within nine months following the date we receive proof of
your death and before any other inconsistent election is made. We will not
process any beneficiary continuation option election for which we have not
received the election by December 15 of the calandar year following your death.
Beneficiaries who do not make a timely election will not be eligible for the
beneficiary continuation option. As of the date we receive satisfactory proof
of death, any required instructions, information and forms necessary to effect
the beneficiary continuation option feature, we will increase the account value
to equal the minimum death benefit if such death benefit is greater than such
account value. The beneficiary continuation option may not be available in your
state. Check with your financial professional or our processing office
regarding availability in your state.
Under the beneficiary continuation option:
o The contract continues in your name for the benefit of your beneficiary.
o The beneficiary may make transfers among the investment options, but no
additional contributions will be permitted.
o The minimum death benefit provision will no longer be in effect.
o The beneficiary may choose at any time to withdraw all or a portion of the
account value and no withdrawal charges will apply. Any partial withdrawal
must be at least $300.
o Upon the death of the beneficiary, the beneficiary named by the original
beneficiary has the option to either continue taking minimum distributions
based on the remaining life expectancy of the deceased beneficiary or to
receive any remaining interest in the contract in a lump sum. The option
elected will be processed when we receive satisfactory proof of death, any
required instructions for the method of payment and any required
information and forms necessary to effect payment.
Generally, payments will be made once a year to the beneficiary over the
beneficiary's life expectancy (determined in the calendar year after your
death, and determined on a term certain basis). These payments must begin no
later than December 31st of the calendar year after the year of your death.
However, if you die before your Required Beginning Date for Required Minimum
Distributions as discussed in "Tax Information" later in this Prospectus, your
beneficiary may choose the "5-year rule" instead of annual payments over life
expectancy. If your beneficiary chooses this, your beneficiary may take
withdrawals as desired, but the entire account value must be fully withdrawn by
December 31st of the 5th calendar year after your death.
40 Payment of death benefit
7. Tax information
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OVERVIEW
In this part of the prospectus, we discuss the current federal income tax rules
that generally apply to EQUI-VEST(R) contracts owned by United States
taxpayers. The tax rules can differ, depending on the type of contract, whether
NQ, Traditional IRA or Roth IRA. Therefore, we discuss the tax aspects of each
type of contract separately.
Federal income tax rules include the United States laws in the Internal Revenue
Code, and Treasury Department Regulations and Internal Revenue Service ("IRS")
interpretations of the Internal Revenue Code. These tax rules may change. We
cannot predict whether, when, or how these rules could change. Any change could
affect contracts purchased before the change.
We cannot provide detailed information on all tax aspects of the contracts.
Moreover, the tax aspects that apply to a particular person's contract may vary
depending on the facts applicable to that person. We do not discuss state
income and other state taxes, federal income tax and withholding rules for
non-U.S. taxpayers, or federal gift and estate taxes. Transfers of the
contract, rights under the contract, or payments under the contract may be
subject to gift or estate taxes. You should not rely only on this document, but
should consult your tax adviser before your purchase.
President Bush signed the Economic Growth and Tax Relief Reconciliation Act of
2001 ("EGTRRA") on June 7, 2001. Many of the provisions of EGTRRA became
effective on January 1, 2002 and are phased in during the first decade of the
twenty-first century. In the absence of future legislation, all of the
amendments made by EGTRRA will no longer apply after December 31, 2010, and the
law in effect in 2001 will apply again. In general, EGTRRA liberalizes
contributions that can be made to all types of tax-favored retirement plans. In
addition to increasing amounts that can be contributed and permitting
individuals over age 50 to make additional contributions, EGTRRA also permits
rollover contributions to be made between different types of tax-favored
retirement plans. Please discuss with your tax advisor how EGTRRA affects your
personal financial situation.
BUYING A CONTRACT TO FUND A RETIREMENT ARRANGEMENT
Generally, there are two types of funding vehicles that are available for
Individual Retirement Arrangements ("IRAs"): an IRA annuity contract such as
this one, or an IRA or other qualified account. How these arrangements work,
including special rules applicable to each, are described in the specific
sections for each type of arrangement, below. You should be aware that the
funding vehicle for a qualified arrangement does not provide any tax deferral
benefit beyond that already provided by the Code for all permissible funding
vehicles. Before choosing an annuity contract, therefore, you should consider
the annuity's features and benefits, such as EQUI-VEST(R)'s guaranteed minimum
death benefit, selection of variable investment options, provision of a
guaranteed interest option and choices of payout options, as well as the
features and benefits of other permissible funding vehicles and the relative
costs of annuities and other such arrangements. You should be aware that cost
may vary depending on the features and benefits made available and the charges
and expenses of the portfolios.
TRANSFERS AMONG INVESTMENT OPTIONS
You can make transfers among investment options inside the contract without
triggering taxable income.
TAXATION OF NONQUALIFIED ANNUITIES
CONTRIBUTIONS
You may not deduct the amount of your contributions to a nonqualified annuity
contract.
CONTRACT EARNINGS
Generally, you are not taxed on contract earnings until you receive a
distribution from your contract, whether as a withdrawal or as an annuity
payment. However, earnings are taxable, even without a distribution:
o if a contract fails investment diversification requirements as specified in
federal income tax rules (these rules are based on or are similar to those
specified for mutual funds under securities laws);
o if you transfer a contract, for example, as a gift to someone other than
your spouse (or former spouse);
o if the owner is other than an individual (such as a corporation,
partnership, trust, or other non-natural person).
All nonqualified deferred annuity contracts that Equitable Life and its
affiliates issue to you during the same calendar year are linked together and
treated as one contract for calculating the taxable amount of any distribution
from any of those contracts.
ANNUITY PAYMENTS
Once annuity payments begin, a portion of each payment is taxable as ordinary
income. You get back the remaining portion without paying taxes on it. This is
your "investment in the contract." Generally, your investment in the contract
equals the contributions you made, less any amounts you previously withdrew
that were not taxable.
For fixed annuity payments, the tax-free portion of each payment is determined
by (1) dividing your investment in the contract by the total amount you are
expected to receive out of the contract, and (2) multiplying the result by the
amount of the payment. For variable annuity payments, your tax-free portion of
each payment is your investment in the contract divided by the number of
expected payments.
Once you have received the amount of your investment in the contract, all
payments after that are fully taxable. If payments under a life annu-
Tax information 41
ity stop because the annuitant dies, there is an income tax deduction for any
unrecovered investment in the contract.
PAYMENTS MADE BEFORE ANNUITY PAYMENTS BEGIN
If you make withdrawals before annuity payments begin under your contract, they
are taxable to you as ordinary income if there are earnings in the contract.
Generally, earnings are your account value less your investment in the
contract. If you withdraw an amount which is more than the earnings in the
contract as of the date of the withdrawal, the balance of the distribution is
treated as a return of your investment in the contract and is not taxable.
CONTRACTS PURCHASED THROUGH EXCHANGES
You may purchase your NQ contract through an exchange of another contract.
Normally, exchanges of contracts are taxable events. The exchange will not be
taxable under Section 1035 of the Internal Revenue Code if:
o the contract that is the source of the funds you are using to purchase the
NQ contract is another nonqualified deferred annuity contract (or life
insurance or endowment contract).
o the owner and the annuitant are the same under the source contract and the
EQUI-VEST(R) NQ contract. If you are using a life insurance or endowment
contract the owner and the insured must be the same on both sides of the
exchange transaction.
The tax basis, also referred to as your investment in the contract, of the
source contract carries over to the EQUI-VEST(R) NQ contract.
A recent case permitted an owner to direct the proceeds of a partial withdrawal
from one nonqualified deferred annuity contract to a different insurer to
purchase a new nonqualified deferred annuity contract on a tax-free basis.
Special forms, agreements between carriers, and provision of cost basis
information may be required to process this type of an exchange.
SURRENDERS
If you surrender or cancel the contract, the distribution is taxable as
ordinary income (not capital gain) to the extent it exceeds your investment in
the contract.
DEATH BENEFIT PAYMENTS MADE TO A BENEFICIARY AFTER YOUR DEATH
For the rules applicable to death benefits, see "Payment of death benefit"
earlier in this Prospectus. The tax treatment of a death benefit taken as a
single sum is generally the same as the tax treatment of a withdrawal from or
surrender of your contract. The tax treatment of a death benefit taken as
annuity payments is generally the same as the tax treatment of annuity payments
under your contract.
EARLY DISTRIBUTION PENALTY TAX
If you take distributions before you are age 59-1/2 a penalty tax of 10% of the
taxable portion of your distribution applies in addition to the income tax.
Some of the available exceptions to the pre-age 59-1/2 penalty tax include
distributions made:
o on or after your death; or
o because you are disabled (special federal income tax definition); or
o in the form of substantially equal periodic annuity payments for your life
(or life expectancy) or the joint lives (or joint life expectancy) of you
and a beneficiary.
OTHER INFORMATION
The IRS has stated that you will be considered the owner of the assets in the
separate account if you possess incidents of ownership in those assets, such as
the ability to exercise investment control over the assets. The Treasury
Department has the authority to issue guidelines prescribing the circumstances
in which your ability to direct your investment to particular portfolios within
a separate account may cause you, rather than the insurance company, to be
treated as the owner of the portfolio shares attributable to your nonqualified
deferred annuity contract. If you were to be considered the owner of the
underlying shares, income and gains attributable to such portfolio shares would
be currently included in your gross income for federal income tax purposes.
Incidents of investment control could include among other items, the number of
investment options available under a contract and/or the frequency of transfers
available under the contract. In connection with the issuance of regulations
concerning investment diversification in 1986, the Treasury Department
announced that the diversification regulations did not provide guidance on
investor control but that guidance would be issued in the form of regulations
or rulings. As of the date of this prospectus, no such guidance has been
issued. It is not known whether such guidelines, if in fact issued, would have
retroactive adverse effect on existing contracts. We cannot provide assurance
as to the terms or scope of any future guidance nor any assurance that such
guidance would not be imposed on a retroactive basis to contracts issued under
this prospectus. We reserve the right to modify the contract as necessary to
attempt to prevent you from being considered the owner of the assets of the
Separate Account A for tax purposes.
SPECIAL RULES FOR NQ CONTRACTS ISSUED IN PUERTO RICO
Under current law we treat income from NQ contracts as U.S. source. A Puerto
Rico resident is subject to U.S. taxation on such U.S. source income. Only
Puerto Rico source income of Puerto Rico residents is excludable from U.S.
taxation. Income from NQ contracts is also subject to Puerto Rico tax. The
calculation of the taxable portion of amounts distributed from a contract may
differ in the two jurisdictions. Therefore, you might have to file both U.S.
and Puerto Rico tax returns, showing different amounts of income from the
contract for each tax return. Puerto Rico generally provides a credit against
Puerto Rico tax for U.S. tax paid. Depending on your personal situation and the
timing of the different tax liabilities, you may not be able to take full
advantage of this credit.
INDIVIDUAL RETIREMENT ARRANGEMENTS ("IRAS")
GENERAL
"IRA" stands for individual retirement arrangement. There are two basic types
of such arrangements, individual retirement accounts and individual retirement
annuities. In an individual retirement account, a
42 Tax information
trustee or custodian holds the assets funding the account for the benefit of
the IRA owner. The assets typically include mutual funds and/or individual
stocks and securities in a custodial account, and certificates of deposit in a
trusteed account. In an individual retirement annuity, an insurance company
issues an annuity contract that serves as the IRA.
There are two basic types of IRAs, as follows:
o "Traditional IRAs," typically funded on a pre-tax basis including SEP-IRAs
and SIMPLE-IRAs, issued and funded in connection with employer-sponsored
retirement plans; and
o Roth IRAs, first available in 1998, funded on an after-tax basis.
Regardless of the type of IRA, your ownership interest in the IRA cannot be
forfeited. You or your beneficiaries who survive you are the only ones who can
receive the IRA's benefits or payments. All types of IRAs qualify for tax
deferral, regardless of the funding vehicle selected.
You can hold your IRA assets in as many different accounts and annuities as you
would like, as long as you meet the rules for setting up and making
contributions to IRAs. However, if you own multiple IRAs, you may be required
to combine IRA values or contributions for tax purposes. For further
information about individual retirement arrangements, you can read Internal
Revenue Service Publication 590 ("Individual Retirement Arrangements (IRAs)").
This publication is usually updated annually, and can be obtained from any IRS
district office or the IRS web site (www.irs.gov).
Equitable Life designs its traditional IRA contracts to qualify as "individual
retirement annuities" under Section 408(b) of the Internal Revenue Code. This
prospectus contains the information that the IRS requires you to have before
you purchase an IRA. This section of the prospectus covers some of the special
tax rules that apply to IRAs. The next section covers Roth IRAs. Education IRAs
are not discussed in this prospectus because they are not available in
individual retirement annuity form.
The EQUI-VEST(R) traditional and Roth IRA contracts have been approved by the
IRS as to form for use as a traditional IRA and Roth IRA, respectively. This
IRS approval is a determination only as to the form of the annuity. It does not
represent a determination of the merits of the annuity as an investment. The
IRS approval does not address every feature possibly available under the
EQUI-VEST(R) traditional and Roth IRA contracts. Because the IRS has announced
that issuers of formally approved IRAs must amend their contracts to reflect
recent tax law changes and resubmit the amended contracts to retain such formal
approval, Equitable intends to comply with such requirement during 2002.
CANCELLATION
You can cancel any version of the EQUI-VEST(R) IRA contract (Traditional IRA or
Standard Roth IRA) by following the directions under "Your right to cancel
within a certain number of days" in "Contract features and benefits" earlier in
this Prospectus. You can cancel an EQUI-VEST(R) Standard Roth IRA contract
issued as a result of a full or partial conversion of an EQUI-VEST(R)
Traditional IRA contract by following the instructions in the "EQUI-VEST(R)
Roth IRA Re-Characterization Form." The form is available from our processing
office or your financial professional. If you cancel a Traditional IRA or
Standard Roth IRA contract, we may have to withhold tax, and we must report the
transaction to the IRS. A contract cancellation could have an unfavorable tax
impact.
TRADITIONAL INDIVIDUAL RETIREMENT ANNUITIES
(TRADITIONAL IRAS)
CONTRIBUTIONS TO TRADITIONAL IRAS. Individuals may make three different types
of contributions to a traditional IRA:
o regular contributions out of earned income or compensation; or
o tax-free "rollover" contributions; or
o direct custodian-to-custodian transfers from other traditional IRAs
("direct transfers").
REGULAR CONTRIBUTIONS TO TRADITIONAL IRAS
LIMITS ON CONTRIBUTIONS. Generally, $3,000 is the maximum amount that you may
contribute to all IRAs (including Roth IRAs) for 2002. When your earnings are
below $3,000, your earned income or compensation for the year is the most you
can contribute. This limit does not apply to rollover contributions or direct
custodian-to-custodian transfers into a traditional IRA. You cannot make
regular traditional IRA contributions for the tax year in which you reach age
70-1/2 or any tax year after that.
If you were born from July 1, 1931 to December 31, 1952, you may be eligible to
make an additional "catch up contribution" of up to $500 to your traditional
IRA for 2002.
SPECIAL RULES FOR SPOUSES. If you are married and file a joint income tax
return, you and your spouse may combine your compensation to determine the
amount of regular contributions you are permitted to make to traditional IRAs
(and Roth IRAs discussed below). Even if one spouse has no compensation under
$3,000, married individuals filing jointly can contribute up to $6,000 for 2002
to any combination of traditional IRAs and Roth IRAs. (Any contributions to
Roth IRAs reduce the ability to contribute to traditional IRAs and vice versa.)
The maximum amount may be less if earned income is less and the other spouse
has made IRA contributions. No more than a combined total of $3,000 can be
contributed annually to either spouse's traditional and Roth IRAs. Each spouse
owns his or her traditional IRAs and Roth IRAs even if the other spouse funded
the contributions. A working spouse age 70-1/2 or over can contribute up to the
lesser of $3,000 or 100% of "earned income" to a traditional IRA for a
nonworking spouse until the year in which the nonworking spouse reaches age
70-1/2. Catch-up contributions may be made as described above for spouses who
are at least age 50 but under age 70-1/2 at any time during calendar year 2002.
DEDUCTIBILITY OF CONTRIBUTIONS. The amount of traditional IRA contributions
that you can deduct for a tax year depends on whether you are covered by an
employer-sponsored-tax-favored retirement plan, as defined under special
federal income tax rules. Your Form W-2 will indicate whether or not you are
covered by such a retirement plan.
IF YOU ARE NOT COVERED BY A RETIREMENT PLAN DURING ANY PART OF THE YEAR,
you can make fully deductible contributions to your traditional IRAs for 2002
up to $3,000 or, if less, your earned income.
IF YOU ARE COVERED BY A RETIREMENT PLAN DURING ANY PART OF THE YEAR, and your
adjusted gross income (AGI) is BELOW THE LOWER
Tax information 43
DOLLAR FIGURE IN A PHASE-OUT RANGE, you can make fully deductible contributions
to your traditional IRAs. For each tax year, your fully deductible contribution
can be up to $3,000 for 2002, or if less, your earned income. (The dollar limit
is $3,500 for people eligible to make age 50-70-1/2 catch-up contributions.)
IF YOU ARE COVERED BY A RETIREMENT PLAN DURING ANY PART OF THE YEAR, and your
AGI falls within a PHASE-OUT range, you can make PARTIALLY DEDUCTIBLE
CONTRIBUTIONS to your traditional IRAs.
IF YOU ARE COVERED BY A RETIREMENT PLAN DURING ANY PART OF THE YEAR, and your
AGI falls ABOVE THE HIGHER FIGURE IN THE PHASE-OUT RANGE, you may not deduct
any of your regular contributions to your traditional IRAs.
If you are single and covered by a retirement plan during any part of the
taxable year, the deduction for traditional IRA contributions phases out with
the AGI between $34,000 and $44,000 in 2002. This range will increase every
year until 2005 when the range is $50,000-$60,000.
If you are married and file a joint return, and you are covered by a retirement
plan during any part of the taxable year, the deduction for traditional IRA
contributions phases out with AGI between $54,000 and $64,000 in 2002. This
range will increase every year until 2007 when the range is $80,000-$100,000.
Married individuals filing separately and living apart at all times are not
considered married for purposes of this deductible contribution calculation.
Generally, the active participation in an employer-sponsored retirement plan of
an individual is determined independently for each spouse. Where spouses have
"married filing jointly" status, however, the maximum deductible traditional
IRA contribution for an individual who is not an active participant (but whose
spouse is an active participant) is phased out for taxpayers with AGI of
between $150,000 and $160,000.
To determine the deductible amount of the contribution for 2002, you determine
AGI and subtract $34,000 if you are single, or $54,000 if you are married and
file a joint return with your spouse. The resulting amount is your excess AGI.
You then determine the limit on the deduction for traditional IRA contributions
using the following formula:
($10,000-excess AGI) times $3,000 (or earned Equals the adjusted
- -------------------- x income, if less, = deductible
divided by $10,000 or $3,500, contribution
if applicable) limit
ADDITIONAL "SAVER'S CREDIT" FOR CONTRIBUTIONS TO A TRADITIONAL IRA OR ROTH IRA
Beginning in 2002, you may be eligible for a nonrefundable income tax credit
for contributions you make to a traditional IRA or Roth IRA. If you qualify,
you may take this credit even though your traditional IRA contribution is
already fully or partially deductible. To take advantage of this "saver's
credit" you must be age 18 or over before the end of 2002, you cannot be a
full-time student or claimed as a dependent on another's tax return, and your
adjusted gross income cannot exceed $50,000. The amount of the tax credit you
can get varies from 10% of your contribution to 50% of your contribution, and
depends on your income tax filing status and your adjusted gross income. The
maximum annual contribution eligible for the saver's credit is $2,000. If you
and your spouse file a joint return, and each of you qualifies, each is
eligible for a maximum annual contribution of $2,000. Your saver's credit may
also be reduced if you take or have taken a taxable distribution from any plan
eligible for a saver's credit contribution -- even if you make a contribution
to one plan and take the distribution from another plan -- during the "testing
period." The "testing period" begins two years before the year for which you
make the contribution and ends when your tax return is due for the year for
which you make the contribution. Saver's-credit-eligible contributions may be
made to a 401(k) plan, 403(b) TSA, governmental 457(b) plan, SIMPLE IRA, or
SARSEP IRA, as well as a traditional IRA or Roth IRA.
NONDEDUCTIBLE REGULAR CONTRIBUTIONS. If you are not eligible to deduct part or
all of the traditional IRA contribution, you may still make nondeductible
contributions on which earnings will accumulate on a tax-deferred basis. The
combined deductible and nondeductible contributions to your traditional IRA (or
the nonworking spouse's traditional IRA) may not, however, exceed the maximum
$3,000 per person limit for 2002. For 2002, the dollar limit is $3,500 for
people eligible to make age 50--70-1/2 catch-up contributions. See "Excess
contributions" below. You must keep your own records of deductible and
nondeductible contributions in order to prevent double taxation on the
distribution of previously taxed amounts. See "Withdrawals, payments and
transfers of funds out of traditional IRAs" below.
If you are making nondeductible contributions in any taxable year, or you have
made nondeductible contributions to a traditional IRA in prior years and are
receiving distributions from any traditional IRA, you must file the required
information with the IRS. Moreover, if you are making nondeductible traditional
IRA contributions, you must retain all income tax returns and records
pertaining to such contributions until interests in all traditional IRAs are
fully distributed.
WHEN YOU CAN MAKE REGULAR CONTRIBUTIONS. If you file your tax returns on a
calendar year basis like most taxpayers, you have until the April 15 return
filing deadline (without extensions) of the following calendar year to make
your regular traditional IRA contributions for a tax year.
ROLLOVER AND TRANSFER CONTRIBUTIONS TO TRADITIONAL IRAS
Rollover contributions may be made to a traditional IRA from these "eligible
retirement plans":
o qualified plans;
o governmental 457(b) plans (beginning in 2002);
o TSAs (including Internal Revenue Code Section 403(b)(7) custodial
accounts); and
o other traditional IRAs.
Direct transfer contributions may only be made directly from one traditional
IRA to another.
44 Tax information
Any amount contributed to a traditional IRA after you reach age 70-1/2 must be
net of your required minimum distribution for the year in which the rollover or
direct transfer contribution is made.
ROLLOVERS FROM "ELIGIBLE RETIREMENT PLANS" OTHER THAN TRADITIONAL IRAS
There are two ways to do rollovers:
o Do it yourself
You actually receive a distribution that can be rolled over and you roll it
over to a traditional IRA within 60 days after the date you receive the
funds. The distribution from your eligible retirement plan will be net of
20% mandatory federal income tax withholding. If you want, you can replace
the withheld funds yourself and roll over the full amount.
o Direct rollover
You tell the trustee or custodian of the eligible retirement plan to send
the distribution directly to your traditional IRA issuer. Direct rollovers
are not subject to mandatory federal income tax withholding.
All distributions from a TSA, qualified plan or governmental 457(b) plan are
eligible rollover distributions, unless the distribution is:
o "required minimum distributions" after age 70-1/2 or retirement; or
o substantially equal periodic payments made at least annually for your life
(or life expectancy) or the joint lives (or joint life expectancies) of you
and your designated beneficiary; or
o substantially equal periodic payments made for a specified period of 10
years or more; or
o a hardship withdrawal; or
o corrective distributions that fit specified technical tax rules; or
o loans that are treated as distributions; or
o a death benefit payment to a beneficiary who is not your surviving spouse;
or
o a qualified domestic relations order distribution to a beneficiary who is
not your current spouse or former spouse.
You should discuss with your tax advisor whether you should consider rolling
over funds from one type of tax qualified retirement plan to another, because
the funds will generally be subject to the rules of the recipient plan. For
example, funds in a governmental 457(b) plan are not subject to the additional
10% federal income tax penalty for premature distributions, but they may become
subject to this penalty if you roll the funds to a non-governmental 457(b) plan
and subsequently take a premature distribution.
ROLLOVERS OF AFTER-TAX CONTRIBUTIONS FROM ELIGIBLE RETIREMENT PLANS OTHER THAN
TRADITIONAL IRAS
Beginning in 2002, any after-tax contributions you have made to a qualified
plan or TSA (but not a governmental 457(b) plan) may be rolled over to a
traditional IRA (either in a direct rollover or a rollover you do yourself).
When the recipient plan is a traditional IRA, you are responsible for
recordkeeping and calculating the taxable amount of any distributions you take
from that traditional IRA. See "Taxation of Payments" later in this Prospectus
under "Withdrawals, payments and transfers of funds out of traditional IRAs."
ROLLOVERS FROM TRADITIONAL IRAS TO TRADITIONAL IRAS
You may roll over amounts from one traditional IRA to one or more of your other
traditional IRAs if you complete the transaction within 60 days after you
receive the funds. You may make such a rollover only once in every 12-month
period for the same funds. Trustee-to-trustee or custodian-to-custodian direct
transfers are not rollover transactions. You can make these more frequently
than once in every 12-month period.
The surviving spouse beneficiary of a deceased individual can roll over or
directly transfer an inherited traditional IRA to one or more other traditional
IRAs. Also, in some cases, traditional IRAs can be transferred on a tax-free
basis between spouses or former spouses as a result of a court ordered divorce
or separation decree.
EXCESS CONTRIBUTIONS
Excess contributions to IRAs are subject to a 6% excise tax for the year in
which made and for each year after until withdrawn. The following are excess
contributions to IRAs:
o regular contributions of more than $3,000 for 2002, (or $3,500 if you are
age 50-70-1/2); or
o regular contributions of more than earned income for the year, if that
amount is $3,000 for 2002, (or $3,500 if you are age 50-70-1/2); or
o regular contributions to a traditional IRA made after you reach age 70-1/2;
or
o rollover contributions of amounts which are not eligible to be rolled over,
for example, minimum distributions required to be made after age 70-1/2.
You can avoid the excise tax by withdrawing an excess contribution (rollover or
regular) before the due date (including extensions) for filing your federal
income tax return for the year. If it is an excess regular traditional IRA
contribution, you cannot take a tax deduction for the amount withdrawn. You do
not have to include the excess contribution withdrawn as part of your income.
It is also not subject to the 10% additional penalty tax on early
distributions, discussed below under "Early distribution penalty tax." You do
have to withdraw any earnings that are attributed to the excess contribution.
The withdrawn earnings would be included in your gross income and could be
subject to the 10% penalty tax.
Even after the due date for filing your return, you may withdraw an excess
rollover contribution, without income inclusion or 10% penalty, if:
(1) the rollover was from an eligible retirement plan to a traditional IRA;
Tax information 45
(2) the excess contribution was due to incorrect information that the plan
provided; and
(3) you took no tax deduction for the excess contribution.
RECHARACTERIZATIONS
Amounts that have been contributed as traditional IRA funds may subsequently be
treated as Roth IRA funds. Special federal income tax rules allow you to change
your mind again and have amounts that are subsequently treated as Roth IRA
funds, once again treated as traditional IRA funds. You do this by using the
forms we prescribe. This is referred to as having "recharacterized" your
contribution.
WITHDRAWALS, PAYMENTS AND TRANSFERS OF FUNDS OUT OF TRADITIONAL IRAS
NO FEDERAL INCOME TAX LAW RESTRICTIONS ON WITHDRAWALS. You can withdraw any or
all of your funds from a traditional IRA at any time. You do not need to wait
for a special event like retirement.
TAXATION OF PAYMENTS. Earnings in traditional IRAs are not subject to federal
income tax until you or your beneficiary receive them. Taxable payments or
distributions include withdrawals from your contract, surrender of your
contract, and annuity payments from your contract. Death benefits are also
taxable. Except as discussed below, the total amount of any distribution from a
traditional IRA must be included in your gross income as ordinary income.
If you have ever made nondeductible IRA contributions to any traditional IRA
(it does not have to be to this particular traditional IRA contract), those
contributions are recovered tax free when you get distributions from any
traditional IRA. You must keep permanent tax records of all of your
nondeductible contributions to traditional IRAs. At the end of any year in
which you have received a distribution from any traditional IRA, you calculate
the ratio of your total nondeductible traditional IRA contributions (less any
amounts previously withdrawn tax free) to the total account balances of all
traditional IRAs you own at the end of the year plus all traditional IRA
distributions made during the year. Multiply this by all distributions from the
traditional IRA during the year to determine the nontaxable portion of each
distribution.
In addition, a distribution is not taxable if:
o the amount received is a withdrawal of excess contributions, as described
under "Excess contributions" above; or
o the entire amount received is rolled over to another traditional IRA or
other eligible retirement plan which agrees to accept the funds. (See
"Rollovers from eligible retirement plans other than traditional IRAs"
under "Rollover and transfer contributions to traditional IRAs" above.)
Beginning in 2002, the following are eligible to receive rollovers of
distributions from a traditional IRA: a qualified plan, a TSA or a governmental
EDC plan. After-tax contributions in a traditional IRA cannot be rolled from
your traditional IRA into, or back into, a qualified plan, TSA or governmental
EDC plan. Before you decide to roll over a distribution from a traditional IRA
to another eligible retirement plan, you should check with the administrator of
that plan about whether the plan accepts rollovers and, if so, the types its
accepts. You should also check with the administrator of the receiving plan
about any documents required to be completed before it will accept a rollover.
Distributions from a traditional IRA are not eligible for favorable ten-year
averaging and long-term capital gain treatment available under limited
circumstances for distributions from qualified plans. If you might be eligible
for such tax treatment from your qualified plan, you may be able to preserve
such tax treatment even though an eligible rollover from a qualified plan is
temporarily rolled into a "conduit IRA" before being rolled back into a
qualified plan. See your tax advisor.
REQUIRED MINIMUM DISTRIBUTIONS
- --------------------------------------------------------------------------------
The IRS and Treasury have recently proposed revisions to the minimum
distribution rules. We expect these rules to be finalized in 2002. Since the
proposed revisions permit IRA owners and beneficiaries to apply the proposed
revisions to distributions for calendar year 2001, the discussion below
reflects the proposed revisions.
- --------------------------------------------------------------------------------
LIFETIME REQUIRED MINIMUM DISTRIBUTIONS. You must start taking annual
distributions from your traditional IRAs for the year in which you turn age
70-1/2.
WHEN YOU HAVE TO TAKE THE FIRST REQUIRED MINIMUM DISTRIBUTION.
The first required minimum distribution is for the calendar year in which you
turn age 70-1/2. You have the choice to take this first required minimum
distribution during the calendar year you actually reach age 70-1/2, or to delay
taking it until the first three-month period in the next calendar year (January
1 - April 1). Distributions must start no later than your "Required Beginning
Date," which is April 1st of the calendar year after the calendar year in which
you turn age 70-1/2. If you choose to delay taking the first annual minimum
distribution, then you will have to take two minimum distributions in that year
- -- the delayed one for the first year and the one actually for that year. Once
minimum distributions begin, they must be made at some time each year.
HOW YOU CAN CALCULATE REQUIRED MINIMUM DISTRIBUTIONS. There are two approaches
to taking required minimum distributions -- "account-based" or "annuity-based."
Account-based method. If you choose an account-based method, you divide the
value of your traditional IRA as of December 31st of the past calendar year by
a number corresponding to your age from an IRS table. This gives you the
required minimum distribution amount for that particular IRA for that year. If
your spouse is your sole beneficiary and more than 10 years younger than you,
the dividing number you use may be from another IRS table and may produce a
smaller lifetime required minimum distribution amount. Regardless of the table
used, the required minimum distribution amount will vary each year as the
account value and the divisor change. If you initially choose an account-based
method, you may later apply your traditional IRA funds to a life annuity-based
payout with any certain period not exceeding remaining life expectancy.
Annuity-based method. If you choose an annuity-based method, you do not have to
do annual calculations. You apply the account value to an
46 Tax information
annuity payout for your life or the joint lives of you and a designated
beneficiary, or for a period certain not extending beyond applicable life
expectancies.
DO YOU HAVE TO PICK THE SAME METHOD TO CALCULATE YOUR REQUIRED MINIMUM
DISTRIBUTIONS FOR ALL OF YOUR TRADITIONAL IRAS AND OTHER RETIREMENT PLANS? No.
If you want, you can choose a different method and a different beneficiary for
each of your traditional IRAs and other retirement plans. For example, you can
choose an annuity payout from one IRA, a different annuity payout from a
qualified plan, and an account-based annual withdrawal from another IRA.
WILL WE PAY YOU THE ANNUAL AMOUNT EVERY YEAR FROM YOUR TRADITIONAL IRA BASED ON
THE METHOD YOU CHOOSE? No, unless you affirmatively select an annuity payout
option or an account-based withdrawal option such as our minimum distribution
withdrawal option. Otherwise, you will be responsible for calculating and
requesting your required minimum distribution withdrawal.
WHAT IF YOU TAKE MORE THAN YOU NEED TO FOR ANY YEAR? The required minimum
distribution amount for your traditional IRAs is calculated on a year-by-year
basis. There are no carry-back or carry-forward provisions. Also, you cannot
apply required minimum distribution amounts you take from your qualified plans
to the amounts you have to take from your traditional IRAs and vice versa.
However, the IRS will let you calculate the required minimum distribution for
each traditional IRA that you maintain, using the method that you picked for
that particular IRA. You can add these required minimum distribution amount
calculations together. As long as the total amount you take out every year
satisfies your overall traditional IRA required minimum distribution amount,
you may choose to take your annual required minimum distribution from any one
or more traditional IRAs that you own.
WHAT IF YOU TAKE LESS THAN YOU NEED TO FOR ANY YEAR? Your IRA could be
disqualified, and you could have to pay tax on the entire value. Even if your
IRA is not disqualified, you could have to pay a 50% penalty tax on the
shortfall (required amount for traditional IRAs less amount actually taken). It
is your responsibility to meet the required minimum distribution rules. We will
remind you when our records show that your age 70-1/2 is approaching. If you do
not select a method with us, we will assume you are taking your required
minimum distribution from another traditional IRA that you own.
WHAT ARE THE REQUIRED MINIMUM DISTRIBUTION PAYMENTS AFTER YOU DIE? These could
vary on whether you die before or after your Required Beginning Date for
lifetime required minimum distribution payments, and the status of your
beneficiary.
INDIVIDUAL BENEFICIARY. Regardless of whether your death occurs before or after
your Required Beginning Date, under the revised proposed rules, an individual
death beneficiary calculates annual post-death required minimum distribution
payments based on the beneficiary's life expectancy using the "term certain
method." That is, he or she determines his or her life expectancy using the
life expectancy tables as of the calendar year after the owner's death and
reduces that number by one each subsequent year.
If you die before your Required Beginning Date, the revised proposed rules
permit any individual beneficiary, including a spousal beneficiary, to elect
instead to apply the "5-year rule." Under this rule, instead of annual payments
having to be made beginning with the first in the year following the owner's
death, the entire account must be distributed by the end of the fifth year
following the year of the owner's death. No distribution is required before
that fifth year.
SPOUSAL BENEFICIARY. If you die after your Required Beginning Date, and your
death beneficiary is your surviving spouse, your spouse has a number of
choices. The revised proposed rules permit post-death distributions to be made
over your spouse's single life expectancy. Any amounts distributed after that
surviving spouse's death are made over the spouse's life expectancy calculated
in the year of his/her death, reduced by one for each subsequent year. In some
circumstances, your surviving spouse may elect to become the owner of the
traditional IRA and halt distributions until he or she reaches age 70-1/2, or
roll over amounts from your traditional IRA into his/her own traditional IRA or
other eligible retirement plan.
If you die before your Required Beginning Date, and the death beneficiary is
your surviving spouse, the revised proposed rules permit the spouse to delay
starting payments over his/her life expectancy until the year in which you
would have attained age 70-1/2.
NON-INDIVIDUAL BENEFICIARY. If you die after your Required Beginning Date, and
your death beneficiary is a non-individual, such as the estate, the revised
proposed rules permit the beneficiary to calculate post-death required minimum
distribution amounts based on the owner's life expectancy in the year of death.
HOWEVER, NOTE THAT WE NEED AN INDIVIDUAL ANNUITANT TO KEEP AN ANNUITY CONTRACT/
CERTIFICATE IN FORCE. IF THE BENEFICIARY IS NOT AN INDIVIDUAL, WE MUST
DISTRIBUTE AMOUNTS REMAINING IN THE ANNUITY CONTRACT AFTER THE DEATH OF THE
ANNUITANT.
If you die before your Required Beginning Date for lifetime required minimum
distribution payments, and the death beneficiary is a non-individual, such as
the estate, the revised proposed rules continue to apply the 5-year rule
discussed above under "Individual beneficiary." PLEASE NOTE THAT WE NEED AN
INDIVIDUAL ANNUITANT TO KEEP AN ANNUITY CONTRACT/CERTIFICATE IN FORCE. IF THE
BENEFICIARY IS NOT AN INDIVIDUAL, WE MUST DISTRIBUTE AMOUNTS REMAINING IN THE
ANNUITY CONTRACT AFTER THE DEATH OF THE ANNUITANT.
SUCCESSOR ANNUITANT AND OWNER
If your spouse is the sole primary beneficiary and elects to become the
successor annuitant and owner, no death benefit is payable until your surviving
spouse's death.
PAYMENTS TO A BENEFICIARY AFTER YOUR DEATH
IRA death benefits are taxed the same as IRA distributions.
BORROWING AND LOANS ARE PROHIBITED TRANSACTIONS
You cannot get loans from a traditional IRA. You cannot use a traditional IRA
as collateral for a loan or other obligation. If you borrow against your IRA or
use it as collateral, its tax-favored status will be lost as of the first day
of the tax year in which this prohibited event occurs. If this happens, you
must include the value of the traditional
Tax information 47
IRA in your federal gross income. Also, the early distribution penalty tax of
10% may apply if you have not reached age 59-1/2 before the first day of that
tax year.
EARLY DISTRIBUTION PENALTY TAX
A penalty tax of 10% of the taxable portion of a distribution applies to
distributions from a traditional IRA made before you reach age 59-1/2. Some of
the available exceptions to the pre-age 59-1/2 penalty tax include distributions
made:
o on or after your death; or
o because you are disabled (special federal income tax definition); or
o used to pay certain extraordinary medical expenses (special federal income
tax definition); or
o used to pay medical insurance premiums for unemployed individuals (special
federal income tax definition); or
o used to pay certain first-time home buyer expenses (special federal income
tax definition; $10,000 lifetime total limit for these distributions from
all your traditional and Roth IRAs); or
o used to pay certain higher education expenses (special federal income tax
definition); or
o in the form of substantially equal periodic payments made at least annually
over your life (or your life expectancy), or over the joint lives of you
and your beneficiary (or your joint life expectancy) using an IRS-approved
distribution method.
ROTH INDIVIDUAL RETIREMENT ANNUITIES ("ROTH IRAS")
This section of the prospectus covers some of the special tax rules that apply
to Standard Roth IRAs. If the rules are the same as those that apply to the
traditional IRA, we will refer you to the same topic under "traditional IRAs."
The EQUI-VEST(R) Standard Roth IRA contracts are designed to qualify as Roth
individual retirement annuities under Sections 408A and 408(b) of the Internal
Revenue Code.
CONTRIBUTIONS TO ROTH IRAS
Individuals may make four different types of contributions to a Roth IRA:
o regular after-tax contributions out of earnings; or
o taxable rollover contributions from traditional IRAs ("conversion"
contributions); or
o tax-free rollover contributions from other Roth IRAs; or
o tax-free direct custodian-to-custodian transfers from other Roth IRAs
("direct transfers").
If you use the forms we require, we will also accept traditional IRA funds
which are subsequently recharacterized as Roth IRA funds following special
federal income tax rules.
REGULAR CONTRIBUTIONS TO ROTH IRAS
LIMITS ON REGULAR CONTRIBUTIONS. Generally, $3,000 is the maximum amount that
you can contribute to all IRAs (including Roth IRAs) for 2002. This limit does
not apply to rollover contributions or direct custodian-to-custodian transfers
into a Roth IRA. Any contributions to Roth IRAs reduce your ability to
contribute to traditional IRAs and vice versa. When your earnings are below
$3,000, your earned income or compensation for the year is the most you can
contribute. If you are married and file a joint income tax return, you and your
spouse may combine your compensation to determine the amount of regular
contributions you are permitted to make to Roth IRAs and traditional IRAs. See
the discussion above under traditional IRAs. If you or your spouse are at least
age 50 at any time during 2002, additional catch-up contributions totalling up
to $500 can be made for the calendar year 2002.
With a Roth IRA, you can make regular contributions when you reach 70-1/2, as
long as you have sufficient earnings. But, you cannot make contributions,
regardless of your age, for any year that:
o your federal income tax filing status is "married filing jointly" and your
modified adjusted gross income is over $160,000; or,
o your federal income tax filing status is "single" and your modified
adjusted gross income is over $110,000.
However, you can make regular Roth IRA contributions in reduced amounts when:
o your federal income tax filing status is "married filing jointly" and your
modified adjusted gross income is between $150,000 and $160,000; or
o your federal income tax filing status is "single" and your modified
adjusted gross income is between $95,000 and $110,000.
If you are married and filing separately and your modified adjusted gross
income is between $0 and $10,000 the amount of regular contribution you are
permitted to make is phased out. If your modified adjusted gross income is more
than $10,000 you cannot make a regular Roth IRA contribution.
WHEN YOU CAN MAKE CONTRIBUTIONS? Same as Traditional IRAs.
DEDUCTIBILITY OF CONTRIBUTIONS. Roth IRA contributions are not tax deductible.
ROLLOVERS AND DIRECT TRANSFERS
WHAT IS THE DIFFERENCE BETWEEN ROLLOVER AND DIRECT TRANSFER TRANSACTIONS?
You may make rollover contributions to a Roth IRA from only two sources:
o another Roth IRA ("tax-free rollover contribution"); or
o another traditional IRA, including a SEP-IRA or SIMPLE IRA (after a
two-year rollover limitation period for SIMPLE-IRA funds), in a taxable
conversion rollover ("conversion contribution").
48 Tax information
You may not make contributions to a Roth IRA from a qualified plan under
Section 401(a) of the Internal Revenue Code, or a TSA under Section 403(b) of
the Internal Revenue Code or any other eligible retirement plan. You may make
direct transfer contributions to a Roth IRA only from another Roth IRA.
The difference between a rollover transaction and a direct transfer transaction
is the following. In a rollover transaction you actually take possession of the
funds rolled over, or are considered to have received them under tax law in the
case of a change from one type of plan to another. In a direct transfer
transaction, you never take possession of the funds, but direct the first Roth
IRA custodian, trustee, or issuer to transfer the first Roth IRA funds directly
to Equitable Life, as the Roth IRA issuer. You can make direct transfer
transactions only between identical plan types (for example, Roth IRA to Roth
IRA). You can also make rollover transactions between identical plan types.
However, you can only use rollover transactions between different plan types
(for example, traditional IRA to Roth IRA).
You may make both Roth IRA to Roth IRA rollover transactions and Roth IRA to
Roth IRA direct transfer transactions. This can be accomplished on a completely
tax-free basis. However, you may make Roth IRA to Roth IRA rollover
transactions only once in any 12-month period for the same funds.
Trustee-to-trustee or custodian-to-custodian direct transfers can be made more
frequently than once a year. Also, if you send us the rollover contribution to
apply it to a Roth IRA, you must do so within 60 days after you receive the
proceeds from the original IRA to get rollover treatment.
The surviving spouse beneficiary of a deceased individual can roll over or
directly transfer an inherited Roth IRA to one or more other Roth IRAs. In some
cases, Roth IRAs can be transferred on a tax-free basis between spouses or
former spouses as a result of a court-ordered divorce or separation decree.
CONVERSION CONTRIBUTIONS TO ROTH IRAS
In a conversion rollover transaction, you withdraw (or are considered to have
withdrawn) all or a portion of funds from a traditional IRA you maintain and
convert it to a Roth IRA within 60 days after you receive (or are considered to
have received) the traditional IRA proceeds. Unlike a rollover from a
traditional IRA to another traditional IRA, the conversion rollover transaction
is not tax-free. Instead, the distribution from the traditional IRA is
generally fully taxable. For this reason, we are required to withhold 10%
federal income tax from the amount converted unless you elect out of such
withholding. If you have ever made nondeductible regular IRA contributions to
any traditional IRA -- whether or not it is the traditional IRA you are
converting -- a pro rata portion of the distribution is tax free.
There is, however, no early distribution penalty tax on the traditional IRA
withdrawal that you are converting to a Roth IRA, even if you are under age
59-1/2.
You cannot make conversion contributions to a Roth IRA for any taxable year in
which your modified adjusted gross income exceeds $100,000. For this purpose,
your modified adjusted gross income is calculated without the gross income
stemming from the traditional IRA conversion. You also cannot make conversion
contributions to a Roth IRA for any taxable year in which your federal income
tax filing status is "married filing separately."
Finally, you cannot make conversion contributions to a Roth IRA to the extent
that the funds in your traditional IRA are subject to the annual required
minimum distribution rule applicable to traditional IRAs beginning at age
70-1/2.
You cannot convert and reconvert an amount during the same taxable year, or if
later, during the 30-day period following a recharacterization. If you
reconvert during either of these periods, it will be a failed Roth IRA
conversion.
RECHARACTERIZATIONS
You may be able to treat a contribution made to one type of IRA as having been
made to a different type of IRA. This is called recharacterizing the
contribution.
HOW TO RECHARACTERIZE. To recharacterize a contribution, you generally must
have the contribution transferred from the first IRA (the one to which it was
made) to the second IRA in a deemed trustee-to-trustee transfer. If the
transfer is made by the due date (including extensions) for your tax return for
the year during which the contribution was made, you can elect to treat the
contribution as having been originally made to the second IRA instead of to the
first IRA. It will be treated as having been made to the second IRA on the same
date that it was actually made to the first IRA. You must report the
recharacterization, and must treat the contribution as having been made to the
second IRA, instead of the first IRA, on your tax return for the year during
which the contribution was made.
The contribution will not be treated as having been made to the second IRA
unless the transfer includes any net income allocable to the contribution. You
can take into account any loss on the contribution while it was in the IRA when
calculating the amount that must be transferred. If there was a loss, the net
income you must transfer may be a negative amount.
No deduction is allowed for the contribution to the first IRA and any net
income transferred with the recharacterized contribution is treated as earned
in the second IRA. The contribution will not be treated as having been made to
the second IRA to the extent any deduction was allowed with respect to the
contribution to the first IRA.
For recharacterization purposes, a distribution from a traditional IRA that is
received in one tax year and rolled over into a Roth IRA in the next year, but
still within 60 days of the distribution from the traditional IRA, is treated
as a contribution to the Roth IRA in the year of the distribution from the
traditional IRA.
Roth IRA conversion contributions from a SEP-IRA or SIMPLE IRA can be
recharacterized to a SEP-IRA or SIMPLE-IRA (including the original SEP-IRA or
SIMPLE IRA).
To recharacterize a contribution you must use our forms.
The recharacterization of a contribution is not treated as a rollover for
purposes of the 12-month limitation period described above. This rule
Tax information 49
applies even if the contribution would have been treated as a rollover
contribution by the second IRA if it had been made directly to the second IRA
rather than as a result of a recharacterization of a contribution to the first
IRA.
WITHDRAWALS, PAYMENTS AND TRANSFERS OF FUNDS OUT OF ROTH IRAS
NO FEDERAL INCOME TAX LAW RESTRICTIONS ON WITHDRAWALS. You can withdraw any or
all of your funds from a Roth IRA at any time; you do not need to wait for a
special event like retirement.
DISTRIBUTIONS FROM ROTH IRAS
Distributions include withdrawals from your contract, surrender and termination
of your contract, and annuity payments from your contract. Death benefits are
also distributions.
The following distributions from Roth IRAs are free of income tax:
o Rollovers from a Roth IRA to another Roth IRA;
o Direct transfers from a Roth IRA to another Roth IRA;
o Qualified distributions from Roth IRA; and
o Return of excess contributions or amounts recharacterized to a traditional
IRA.
QUALIFIED DISTRIBUTIONS FROM ROTH IRAS. Qualified distributions from Roth IRAs
made because of one of the following four qualifying events or reasons are not
includable in income:
o you reach age 59-1/2; or
o you die; or
o you become disabled (special federal income tax definition); or
o your distribution is a "qualified first-time homebuyer distribution"
(special federal income tax definition; $10,000 lifetime total limit for
these distributions from all of your traditional and Roth IRAs).
You also have to meet a five-year aging period. A qualified distribution is any
distribution made after the five-taxable-year period beginning with the first
taxable year for which you made any contribution to any Roth IRA (whether or
not the one from which the distribution is being made). It is not possible to
have a tax-free qualified distribution before the year 2003 because of the
five-year aging requirement.
NONQUALIFIED DISTRIBUTIONS FROM ROTH IRAS. Nonqualified distributions from Roth
IRAs are distributions that do not meet both the both qualifying event and
five-year aging period tests described above. If you receive such a
distribution, part of it may be taxable. For purposes of determining the
correct tax treatment of distributions (other than the withdrawal of excess
contributions and the earnings on them), there is a set order in which
contributions (including conversion contributions) and earnings are considered
to be distributed from your Roth IRA. The order of distributions is as follows:
(1) Regular contributions.
(2) Conversion contributions, on a first-in-first-out basis (generally, total
conversions from the earliest year first). These conversion contributions
are taken into account as follows:
(a) Taxable portion (the amount required to be included in gross income
because of conversion) first, and then the
(b) Nontaxable portion.
(3) Earnings on contributions.
Rollover contributions from other Roth IRAs are disregarded for this purpose.
To determine the taxable amounts distributed, distributions and contributions
are aggregated or grouped together as follows:
(1) All distributions made during the year from all Roth IRAs you
maintain -- with any custodian or issuer -- are added together.
(2) All regular contributions made during and for the year (contributions made
after the close of the year, but before the due date of your return) are
added together. This total is added to the total undistributed regular
contributions made in prior years.
(3) All conversion contributions made during the year are added together. For
purposes of the ordering rules, in the case of any conversion in which the
conversion distribution is made in 2002 and the conversion contribution is
made in 2003, the conversion contribution is treated as contributed prior
to the other conversion contributions made in 2003.
Any recharacterized contributions that end up in a Roth IRA are added to the
appropriate contribution group for the year that the original contribution
would have been taken into account if it had been made directly to the Roth
IRA.
Any recharacterized contribution that ends up in an IRA other than a Roth IRA
is disregarded for the purpose of grouping both contributions and
distributions. Any amount withdrawn to correct an excess contribution
(including the earnings withdrawn) is also disregarded for this purpose.
You must keep your own records of regular and conversion contributions to all
Roth IRAs to assure appropriate taxation. You may have to file information on
your contributions to and distributions from any Roth IRA on your tax return.
You may have to retain all income tax returns and records pertaining to such
contributions and distributions until your interests in all Roth IRAs are
distributed.
Like traditional IRAs, taxable distributions from a Roth IRA are not entitled
to the special favorable ten-year averaging and long-term capital gain
treatment available in certain cases to distributions from qualified plans.
REQUIRED MINIMUM DISTRIBUTIONS DURING LIFE
Lifetime required minimum distributions do not apply.
50 Tax information
REQUIRED MINIMUM DISTRIBUTIONS AT DEATH
Same as traditional IRA under "What are the required minimum distribution
payments after you die?"
PAYMENTS TO A BENEFICIARY AFTER YOUR DEATH
Distributions to a beneficiary generally receive the same tax treatment as if
the distribution had been made to you.
BORROWING AND LOANS ARE PROHIBITED TRANSACTIONS
Same as traditional IRA.
EXCESS CONTRIBUTIONS
Generally, the same as traditional IRA, except that regular contributions made
after age 70-1/2 are not excess contributions.
Excess rollover contributions to Roth IRAs are contributions not eligible to be
rolled over (for example, conversion contributions from a traditional IRA if
your modified adjusted gross income is in excess of $100,000 in the conversion
year).
You can withdraw or recharacterize any contribution to a Roth IRA before the
due date (including extensions) for filing your federal income tax return for
the tax year. If you do this, you must also withdraw or recharacterize any
earnings attributable to the contribution.
EARLY DISTRIBUTION PENALTY TAX
Same as traditional IRA.
For Roth IRAs, special penalty rules may apply to amounts withdrawn
attributable to 1998 conversion rollovers.
ILLUSTRATION OF GUARANTEED INTEREST RATES
In the following two tables, we provide information that the IRS requires us to
furnish to prospective IRA contract owners. In the tables we illustrate the 3%
minimum guaranteed interest rate for contributions we assume are allocated
entirely to the guaranteed interest option under series 300 contracts. In Table
I we assume a $1,000 contribution made annually on the contract date and on
each anniversary after that. We assume no withdrawals or transfers were made
under the contract. In Table II we assume a single initial contribution of
$1,000, and no additional contributions. We also assume no withdrawals or
transfers. The 3% guaranteed interest rate is in the contract.
The values shown assume the withdrawal charge applies. These values reflect the
effect of the annual administrative charge deducted at the end of each contract
year in which the account value is less than $20,000.
To find the appropriate value for the end of the contract year at any
particular age, you subtract the age (nearest birthday) at issue of the
contract from the current age and find the corresponding year in the table.
Years that correspond to a current age over 70, should be ignored, unless the
contract is a Roth IRA.
You should consider the information shown in the tables in light of your
present age. Also, with respect to Table I, you should consider your ability to
contribute $1,000 annually. Any change in the amounts contributed annually in
Table I, or in the amount of the single contribution in Table II would, of
course, change the results shown.
Tax information 51
TABLE I
ACCOUNT VALUES AND CASH VALUES
(assuming $1,000 contributions made annually
at the beginning of the contract year)
- ---------------------------------------------------------
3% MINIMUM GUARANTEE
CONTRACT ACCOUNT CASH
YEAR END VALUE VALUE
- ---------------------------------------------------------
1 $ 1,009.40 $ 954.89
2 $ 2,039.68 $ 1,929.54
3 $ 3,100.87 $ 2,933.43
4 $ 4,193.90 $ 3,967.43
5 $ 5,319.72 $ 5,032.45
6 $ 6,479.31 $ 6,129.42
7 $ 7,673.69 $ 7,313.69
8 $ 8,903.90 $ 8,543.90
9 $ 10,171.01 $ 9,811.01
10 $ 11,476.14 $ 11,116.14
11 $ 12,820.43 $ 12,460.43
12 $ 14,205.04 $ 13,845.04
13 $ 15,631.19 $ 15,271.19
14 $ 17,100.13 $ 16,740.13
15 $ 18,613.13 $ 18,253.13
16 $ 20,201.53 $ 19,841.53
17 $ 21,837.57 $ 21,477.57
18 $ 23,522.70 $ 23,162.70
19 $ 25,258.38 $ 24,898.38
20 $ 27,046.13 $ 26,686.13
21 $ 28,887.52 $ 28,527.52
22 $ 30,784.14 $ 30,424.14
23 $ 32,737.67 $ 32,377.67
24 $ 34,749.80 $ 34,389.80
25 $ 36,822.29 $ 36,462.29
- ---------------------------------------------------------
- ---------------------------------------------------------
3% MINIMUM GUARANTEE
CONTRACT ACCOUNT CASH
YEAR END VALUE VALUE
- ---------------------------------------------------------
26 $ 38,956.96 $ 38,596.96
27 $ 41,155.67 $ 40,795.67
28 $ 43,420.34 $ 43,060.34
29 $ 45,752.95 $ 45,392.95
30 $ 48,155.53 $ 47,795.53
31 $ 50,630.20 $ 50,270.20
32 $ 53,179.11 $ 52,819.11
33 $ 55,804.48 $ 55,444.48
34 $ 58,508.61 $ 58,148.61
35 $ 61,293.87 $ 60,933.87
36 $ 64,162.69 $ 63,802.69
37 $ 67,117.57 $ 66,757.57
38 $ 70,161.10 $ 69,801.10
39 $ 73,295.93 $ 72,935.93
40 $ 76,524.81 $ 76,164.81
41 $ 79,850.55 $ 79,490.55
42 $ 83,276.07 $ 82,916.07
43 $ 86,804.35 $ 86,444.35
44 $ 90,438.48 $ 90,078.48
45 $ 94,181.64 $ 93,821.64
46 $ 98,037.08 $ 97,677.08
47 $ 102,008.20 $ 101,648.20
48 $ 106,098.44 $ 105,738.44
49 $ 110,311.40 $ 109,951.40
50 $ 114,650.74 $ 114,290.74
- ---------------------------------------------------------
TABLE II
ACCOUNT VALUES AND CASH VALUES
(assuming a single contribution of $1,000 and
no further contribution)
- ---------------------------------------------------------
3% MINIMUM GUARANTEE
CONTRACT ACCOUNT CASH
YEAR END VALUE VALUE
- ---------------------------------------------------------
1 $ 1,009.40 $ 954.89
2 $ 1,018.89 $ 963.87
3 $ 1,019.46 $ 964.40
4 $ 1,020.04 $ 964.96
5 $ 1,020.64 $ 965.53
6 $ 1,021.26 $ 966.11
7 $ 1,021.90 $ 1,021.90
8 $ 1,022.55 $ 1,022.55
9 $ 1,023.23 $ 1,023.23
10 $ 1,023.93 $ 1,023.93
11 $ 1,024.65 $ 1,024.65
12 $ 1,025.38 $ 1,025.38
13 $ 1,026.15 $ 1,026.15
14 $ 1,026.93 $ 1,026.93
15 $ 1,027.74 $ 1,027.74
16 $ 1,028.57 $ 1,028.57
17 $ 1,029.43 $ 1,029.43
18 $ 1,030.31 $ 1,030.31
19 $ 1,031.22 $ 1,031.22
20 $ 1,032.16 $ 1,032.16
21 $ 1,033.12 $ 1,033.12
22 $ 1,034.11 $ 1,034.11
23 $ 1,035.14 $ 1,035.14
24 $ 1,036.19 $ 1,036.19
25 $ 1,037.28 $ 1,037.28
- ---------------------------------------------------------
- ---------------------------------------------------------
3% MINIMUM GUARANTEE
CONTRACT ACCOUNT CASH
YEAR END VALUE VALUE
- ---------------------------------------------------------
26 $ 1,038.40 $ 1,038.40
27 $ 1,039.55 $ 1,039.55
28 $ 1,040.73 $ 1,040.73
29 $ 1,041.96 $ 1,041.96
30 $ 1,043.22 $ 1,043.22
31 $ 1,044.51 $ 1,044.51
32 $ 1,045.85 $ 1,045.85
33 $ 1,047.22 $ 1,047.22
34 $ 1,048.64 $ 1,048.64
35 $ 1,050.10 $ 1,050.10
36 $ 1,051.60 $ 1,051.60
37 $ 1,053.15 $ 1,053.15
38 $ 1,054.74 $ 1,054.74
39 $ 1,056.39 $ 1,056.39
40 $ 1,058.08 $ 1,058.08
41 $ 1,059.82 $ 1,059.82
42 $ 1,061.61 $ 1,061.61
43 $ 1,063.46 $ 1,063.46
44 $ 1,065.37 $ 1,065.37
45 $ 1,067.33 $ 1,067.33
46 $ 1,069.35 $ 1,069.35
47 $ 1,071.43 $ 1,071.43
48 $ 1,073.57 $ 1,073.57
49 $ 1,075.78 $ 1,075.78
50 $ 1,078.05 $ 1,078.05
- ---------------------------------------------------------
52 Tax information
FEDERAL AND STATE INCOME TAX WITHHOLDING AND INFORMATION REPORTING
We must withhold federal income tax from distributions from annuity contracts.
You may be able to elect out of this income tax withholding in some cases.
Generally, we do not have to withhold if your distributions are not taxable.
The rate of withholding will depend on the type of distribution and, in certain
cases, the amount of your distribution. Any income tax withheld is a credit
against your income tax liability. If you do not have sufficient income tax
withheld or do not make sufficient estimated income tax payments, you may incur
penalties under the estimated income tax rules.
You must file your request not to withhold in writing before the payment or
distribution is made. Our processing office will provide forms for this
purpose. You cannot elect out of withholding unless you provide us with your
correct Taxpayer Identification Number and a United States residence address.
You cannot elect out of withholding if we are sending the payment out of the
United States.
You should note the following special situations:
o We might have to withhold and/or report on amounts we pay under a free look
or cancellation.
o We are generally required to withhold on conversion rollovers of
traditional IRAs to Roth IRAs, as it is considered a withdrawal from the
traditional IRA and is taxable.
o We are required to withhold on the gross amount of a distribution from a
Roth IRA to the extent it is reasonable for us to believe that a
distribution is includable in your gross income. This may result in tax
being withheld even though the Roth IRA distribution is ultimately not
taxable. You can elect out of withholding as described below.
Special withholding rules apply to foreign recipients and United States
citizens residing outside the United States. We do not discuss these rules here
in detail. However, we may require additional documentation in the case of
payments made to non-United States persons and United States persons living
abroad prior to processing any requested transaction.
Certain states have indicated that state income tax withholding will also apply
to payments from the contracts made to residents. In some states, you may elect
out of state withholding, even if federal withholding applies. Generally, an
election out of federal withholding will also be considered an election out of
state withholding. If you need more information concerning a particular state
or any required forms, call our processing office at the toll-free number.
FEDERAL INCOME TAX WITHHOLDING ON PERIODIC ANNUITY PAYMENTS
We withhold differently on "periodic" and "non-periodic" payments. For a
periodic annuity payment, for example, unless you specify a different number of
withholding exemptions, we withhold assuming that you are married and claiming
three withholding exemptions. If you do not give us your correct Taxpayer
Identification Number, we withhold as if you are single with no exemptions.
Based on the assumption that you are married and claiming three withholding
exemptions, if you receive less than $15,360 in periodic annuity payments in
2002 your payments will generally be exempt from federal income tax
withholding. You could specify a different choice of withholding exemption or
request that tax be withheld. Your withholding election remains effective
unless and until you revoke it. You may revoke or change your withholding
election at any time.
FEDERAL INCOME TAX WITHHOLDING ON NON-PERIODIC ANNUITY PAYMENTS (WITHDRAWALS)
For a non-periodic distribution (total surrender, termination, or partial
withdrawal), we generally withhold at a flat 10% rate. We apply that rate to
the taxable amount in the case of nonqualified contracts, and to the payment
amount in the case of traditional IRAs and Roth IRAs, where it is reasonable to
assume an amount is includable in gross income.
IMPACT OF TAXES TO EQUITABLE LIFE
The contracts provide that we may charge Separate Account A for taxes. We do
not now, but may in the future set up reserves for such taxes.
Tax information 53
8. More information
- --------------------------------------------------------------------------------
ABOUT OUR SEPARATE ACCOUNT A
Each variable investment option is a subaccount of our Separate Account A. We
established Separate Account A in 1968 under special provisions of the New York
Insurance Law. These provisions prevent creditors from any other business we
conduct from reaching the assets we hold in our variable investment options for
owners of our variable annuity contracts. We are the legal owner of all of the
assets in Separate Account A and may withdraw any amounts that exceed our
reserves and other liabilities with respect to variable investment options
under our contracts. The results of Separate Account A's operations are
accounted for without regard to Equitable Life's other operations.
Separate Account A is registered under the Investment Company Act of 1940 and
is classified by that act as a "unit investment trust." The SEC, however, does
not manage or supervise Equitable Life or Separate Account A.
Each subaccount (variable investment option) within Separate Account A invests
solely in Class IA/A or Class IB/B shares, respectively, issued by the
corresponding portfolios of either Trust.
We reserve the right subject to compliance with laws that apply:
(1) to add variable investment options to, or to remove variable investment
options from, Separate Account A, or to add other separate accounts;
(2) to combine any two or more variable investment options;
(3) to transfer the assets we determine to be the shares of the class of
contracts to which the contracts belong from any variable investment option
to another variable investment option;
(4) to operate Separate Account A or any variable investment option as a
management investment company under the Investment Company Act of 1940 (in
which case, charges and expenses that otherwise would be assessed against
an underlying mutual fund would be assessed against Separate Account A or a
variable investment option directly);
(5) to deregister Separate Account A under the Investment Company Act of 1940;
(6) to restrict or eliminate any voting rights as to Separate Account A; and
(7) to cause one or more variable investment options to invest some or all of
their assets in one or more other trusts or investment companies.
ABOUT THE TRUSTS
EQ Advisors Trust and AXA Premier VIP Trust are registered under the Investment
Company Act of 1940. They are classified as "open-end management investment
companies," more commonly called mutual funds. Each Trust issues different
shares relating to each portfolio.
Equitable Life serves as the investment manager of the Trusts. As such,
Equitable Life oversees the activities of the investment advisers with respect
to the Trusts and is responsible for retaining or discontinuing the services of
those advisers. (Prior to September 1999, EQ Financial Consultants, Inc. the
predecessors to AXA Advisors, LLC and an affiliate of Equitable Life served as
investment manager to EQ Advisors Trust.)
EQ Advisors Trust commenced operations on May 1, 1997. For periods prior to
October 18, 1999 the Alliance portfolios (other than EQ/Alliance Premier
Growth) were part of The Hudson River Trust. On October 18, 1999, the assets of
these portfolios became the corresponding portfolios on EQ Advisors Trust. AXA
Premier VIP Trust commenced operations on December 31, 2001.
The Trusts do not impose sales charges or "loads" for buying and selling their
shares. All dividends and other distributions on the Trust's shares are
reinvested in full. The Board of Trustees of each Trust may establish
additional portfolios or eliminate existing portfolios at any time. More
detailed information about each Trust, its portfolio investment objectives,
policies, restrictions, risks, expenses, its Rule 12b-1 Plan relating to its
Class IB/B shares , and other aspects of its operations, appear in the
prospectuses for each Trust, which are attached at the end of this Prospectus,
or in their respective SAIs, which are available upon request.
ABOUT OUR FIXED MATURITY OPTIONS
RATES TO MATURITY AND PRICE PER $100 OF MATURITY VALUE
We can determine the amount required to be allocated to one or more fixed
maturity options in order to produce specified maturity values. For example, we
can tell you how much you need to allocate per $100 of maturity value.
The rates to maturity are determined weekly. The rates in the table below are
illustrative only and will most likely differ from the rates applicable at time
of purchase. Current rates to maturity can be obtained through TOPS or EQAccess
or from your financial professional.
The rates to maturity for new allocations as of February 15, 2002 and the
related price per $100 of maturity value were as shown below.
- --------------------------------------------------------------------------------
FIXED MATURITY
OPTIONS WITH
JUNE 15TH RATE TO PRICE
MATURITY DATE OF MATURITY AS OF PER $100 OF
MATURITY YEAR FEBRUARY 15, 2002 MATURITY VALUE
- --------------------------------------------------------------------------------
2002 3.00% $ 99.03
2003 3.00% $ 96.15
2004 3.25% $ 92.81
2005 3.95% $ 87.89
2006 4.30% $ 83.33
2007 4.75% $ 78.08
2008 5.05% $ 73.19
2009* 5.30% $ 68.47
2010* 5.50% $ 64.00
2011* 5.65% $ 59.87
- --------------------------------------------------------------------------------
* Not available in Oregon.
54 More information
HOW WE DETERMINE THE MARKET VALUE ADJUSTMENT
We use the following procedure to calculate the market value adjustment (up or
down) we make if you withdraw all of your value from a fixed maturity option
before its maturity date.
(1) We determine the market adjusted amount on the date of the withdrawal as
follows:
(a) We determine the fixed maturity amount that would be payable on the
maturity date, using the rate to maturity for the fixed maturity
option.
(b) We determine the period remaining in your fixed maturity option (based
on the withdrawal date) and convert it to fractional years based on a
365-day year. For example, three years and 12 days becomes 3.0329.
(c) We determine the current rate to maturity that applies on the
withdrawal date to new allocations to the same fixed maturity option.
(d) We determine the present value of the fixed maturity amount payable at
the maturity date, using the period determined in (b) and the rate
determined in (c).
(2) We determine the fixed maturity amount as of the current date.
(3) We subtract (2) from the result in (1)(d). The result is the market value
adjustment applicable to such fixed maturity option, which may be positive
or negative.
- --------------------------------------------------------------------------------
Your market adjusted amount is the present value of the maturity value
discounted at the rate to maturity in effect for new contributions to that same
fixed maturity option on the date of the calculation.
- --------------------------------------------------------------------------------
If you withdraw only a portion of the amount in a fixed maturity option, the
market value adjustment will be a percentage of the market value adjustment
that would have applied if you had withdrawn the entire value in that fixed
maturity option. This percentage is equal to the percentage of the value in the
fixed maturity option that you are withdrawing. Any withdrawal charges that are
deducted from a fixed maturity option will result in a market value adjustment
calculated in the same way. See Appendix III at the end of this Prospectus for
an example.
For purposes of calculating the rate to maturity for new allocations to a fixed
maturity option (see (1)(c) above), we use the rate we have in effect for new
allocations to that fixed maturity option. We use this rate even if new
allocations to that option would not be accepted at that time. This rate will
not be less than 3%. If we do not have a rate to maturity in effect for a fixed
maturity option to which the "current rate to maturity" in (1)(c) above would
apply, we will use the rate at the next closest maturity date. If we are no
longer offering new fixed maturity options, the "current rate to maturity" will
be determined in accordance with our procedures then in effect. We reserve the
right to add up to 0.50% to the current rate in (1)(c) above for purposes of
calculating the market value adjustment only.
INVESTMENTS UNDER THE FIXED MATURITY OPTIONS
Amounts allocated to the fixed maturity options are held in a "nonunitized"
separate account we have established under the New York Insurance Law. This
separate account provides an additional measure of assurance that we will make
full payment of amounts due under the fixed maturity options. Under New York
Insurance Law, the portion of the separate account's assets equal to the
reserves and other contract liabilities relating to the contracts are not
chargeable with liabilities from any other business we may conduct. We own the
assets of the separate account, as well as any favorable investment performance
on those assets. You do not participate in the performance of the assets held
in this separate account. We may, subject to state law that applies, transfer
all assets allocated to the separate account to our general account. We
guarantee all benefits relating to your value in the fixed maturity options,
regardless of whether assets supporting fixed maturity options are held in a
separate account or our general account.
We have no specific formula for establishing the rates to maturity for the
fixed maturity options. We expect the rates to be influenced by, but not
necessarily correspond to, among other things, the yields that we can expect to
realize on the separate account's investments from time to time. Our current
plans are to invest in fixed-income obligations, including corporate bonds,
mortgage-backed and asset-backed securities and government and agency issues
having durations in the aggregate consistent with those of the fixed maturity
options.
Although the above generally describes our plans for investing the assets
supporting our obligations under the fixed maturity options under the
contracts, we are not obligated to invest those assets according to any
particular plan except as we may be require to by state insurance laws. We will
not determine the rates to maturity we establish by the performance of the
nonunitized separate account.
ABOUT THE GENERAL ACCOUNT
Our general account supports all of our policy and contract guarantees,
including those that apply to the guaranteed interest option and the fixed
maturity options, as well as our general obligations.
The general account is subject to regulation and supervision by the Insurance
Department of the State of New York and to the insurance laws and regulations
of all jurisdictions where we are authorized to do business. Because of
exemptions and exclusionary provisions that apply, interests in the general
account have not been registered under the Securities Act of 1933, nor is the
general account an investment company under the Investment Company Act of 1940.
However, the market value adjustment interests under the contracts are
registered under the Securities Act of 1933.
We have been advised that the staff of the SEC has not reviewed the portions of
this prospectus that relate to the general account (other than market value
adjustment interests). The disclosure with regard to the general account,
however, may be subject to certain provisions of the federal securities laws
relating to the accuracy and completeness of statements made in prospectuses.
ABOUT OTHER METHODS OF PAYMENT
AUTOMATIC INVESTMENT PROGRAM -- FOR NQ, TRADITIONAL IRA AND STANDARD ROTH IRA
CONTRACTS
You may use our automatic investment program, or "AIP," to have a specified
amount automatically deducted from a checking account,
More information 55
money market account, or credit union checking account and contributed as an
additional contribution into an NQ, Traditional IRA and Standard Roth IRA
contracts on a monthly basis. For all forms of IRAs, your contributions are
subject to the limits and conditions on contributions described in "Tax
information" earlier in this Prospectus.
AIP additional contributions may be allocated to any of the variable investment
options and the guaranteed interest option, but not the fixed maturity options.
Our minimum contribution amount requirement is $20 (or $50 for Series 300
contracts). You choose the day of the month you wish to have your account
debited. However, you may not choose a date later than the 28th day of the
month.
You may cancel AIP at any time by notifying our processing office. We are not
responsible for any debits made to your account before the time written notice
of cancellation is received at our processing office.
PAYROLL DEDUCTION PROGRAM. You can authorize your employer to remit your IRA
contributions to us if your employer has a payroll deduction program. Those
contributions are still your contributions, not your employer's.
WIRE TRANSFERS. You may also send your contributions by wire transfer from your
bank.
DATES AND PRICES AT WHICH CONTRACT EVENTS OCCUR
We describe below the general rules for when, and at what prices, events under
your contract will occur. Other portions of this prospectus describe
circumstances that may cause exceptions. We generally do not repeat those
exceptions below.
BUSINESS DAY
Our business day generally is any day on which the New York Stock Exchange is
open for trading. A business day does not include any day we choose not to open
due to emergency conditions. We may also close early due to emergency
conditions. Our business day generally ends at 4:00 p.m., Eastern Time for
purposes of determining the date when contributions are applied and any other
transaction requests are processed. Contributions will be applied and any other
transaction requests will be processed when they are received along with all
the required information unless another date applies as indicated below.
o If your contribution, transfer, or any other transaction request,
containing all the required information, reaches us on a non-business day
or after 4:00 p.m., Eastern time on a business day, we will use the next
business day.
o When a charge is to be deducted on a contract date anniversary that is a
non-business day, we will deduct the charge on the next business day.
o Quarterly rebalancing will be processed on a calendar year basis and
semiannual or annual rebalancing will be processed on the first business
day of the month. Rebalancing will not be done retroactively.
CONTRIBUTIONS AND TRANSFERS
o Contributions allocated to the variable investment options are invested at
the value next determined after the close of the business day.
o Contributions allocated to a fixed maturity option will receive the rate to
maturity in effect for that fixed maturity option on that business day.
o Contributions allocated to the guaranteed interest option will receive the
guaranteed interest rate in effect on that business day.
o If a fixed maturity option is scheduled to mature on June 15th and June
15th is a non-business day, that fixed maturity option will mature on the
prior business day.
o Transfers to or from variable investment options will be made at the unit
value next determined after the close of the business day.
o Transfers to the guaranteed interest option will receive the guaranteed
interest rate in effect on that business day.
o Transfers to a fixed maturity option will receive the rate to maturity in
effect for that fixed maturity option on that business day.
o Transfers out of a fixed maturity option will be at the market adjusted
amount on that business day.
o For the fixed-dollar option, the first monthly transfer will occur on the
last business day of the month in which we receive your election form at
our processing office.
o For the interest sweep, the first monthly transfer will occur on the last
business day of the month following the month that we receive your election
form at our processing office.
ABOUT YOUR VOTING RIGHTS
As the owner of shares of the Trusts we have the right to vote on certain
matters involving the portfolios, such as:
o the election of trustees; or
o the formal approval of independent auditors selected for each Trust; or
o any other matters described in each prospectus for the Trusts or requiring
a shareholders' vote under the Investment Company Act of 1940.
We will give contract owners the opportunity to instruct us how to vote the
number of shares attributable to their contracts if a shareholder vote is
taken. If we do not receive instructions in time from all contract owners, we
will vote the shares of a portfolio for which no instructions have been
received in the same proportion as we vote shares of that portfolio for which
we have received instructions. We will also vote any shares that we are
entitled to vote directly because of amounts we have in a portfolio in the same
proportions that contract owners vote.
VOTING RIGHTS OF OTHERS
Currently, we control the Trusts. Their shares are sold to our separate
accounts and an affiliated qualified plan trust. In addition, shares of the
Trusts are held by separate accounts of insurance companies both affiliated and
unaffiliated with us. Shares held by these separate accounts will probably be
voted according to the instructions of the owners of insurance policies and
contracts issued by those insurance companies. While this will dilute the
effect of the voting instructions of
56 More information
the contract owners, we currently do not foresee any disadvantages because of
this. The Board of Trustees of each Trust intends to monitor events in order to
identify any material irreconcilable conflicts that may arise and to determine
what action, if any, should be taken in response. If we believe that a response
to any of those events insufficiently protects our contract owners, we will see
to it that appropriate action is taken.
SEPARATE ACCOUNT A VOTING RIGHTS
If actions relating to Separate Account A require contract owner approval,
contract owners will be entitled to one vote for each unit they have in the
variable investment options. Each contract owner who has elected a variable
annuity payout option may cast the number of votes equal to the dollar amount
of reserves we are holding for that annuity in a variable investment option
divided by the annuity unit value for that option. We will cast votes
attributable to any amounts we have in the variable investment options in the
same proportion as votes cast by contract owners.
CHANGES IN APPLICABLE LAW
The voting rights we describe in this prospectus are created under applicable
federal securities laws. To the extent that those laws or the regulations
published under those laws eliminate the necessity to submit matters for
approval by persons having voting rights in separate accounts of insurance
companies, we reserve the right to proceed in accordance with those laws or
regulations.
ABOUT LEGAL PROCEEDINGS
Equitable Life and its affiliates are parties to various legal proceedings. In
our view, none of these proceedings is likely to have a material adverse effect
upon Separate Account A, our ability to meet our obligations under the
contracts, or the distribution of the contracts.
ABOUT OUR INDEPENDENT ACCOUNTANTS
The consolidated financial statements of Equitable Life at December 31, 2001
and 2000, and for the three years ended December 31, 2001, incorporated in this
prospectus by reference to the 2001 Annual Report on Form 10-K are incorporated
in reliance on the report of PricewaterhouseCoopers LLP, independent
accountants, given on the authority of said firm as experts in auditing and
accounting.
FINANCIAL STATEMENTS
The financial statements of Separate Account A, as well as the consolidated
financial statements of Equitable Life, are in the SAI. The SAI is available
free of charge. You may request one by writing our processing office or calling
1-800-628-6673.
TRANSFERS OF OWNERSHIP, COLLATERAL ASSIGNMENTS, LOANS, AND BORROWING
You can transfer ownership of an NQ contract at any time before annuity
payments begin. We will continue to treat you as the owner until we receive
written notification of any change at our processing office. You cannot assign
your NQ contract as collateral or security for a loan. Loans are also not
available under your NQ contract. In some cases, an assignment or change of
ownership may have adverse tax consequences. See "Tax information" earlier in
this Prospectus.
You cannot assign or transfer ownership of a Traditional IRA or Roth IRA
contract except by surrender to us. Loans are not available and you cannot
assign Traditional IRA and Roth IRA contracts as security for a loan or other
obligation.
For limited transfers of ownership after the owner's death see "Beneficiary
continuation option" in "Payment of death benefit" earlier in this Prospectus.
You may direct the transfer of the values under your Traditional IRA and Roth
IRA contract to another similar arrangement.
DISTRIBUTION OF THE CONTRACTS
AXA Advisors, LLC ("AXA Advisors"), the successor to Equitable Financial
Consultants, Inc., and an affiliate of Equitable Life, is the distributor of
the contracts and has responsibility for sales and marketing functions for
Separate Account A. AXA Advisors serves as the principal underwriter of
Separate Account A. AXA Advisors is registered with the SEC as a broker-dealer
and is a member of the National Association of Securities Dealers, Inc. AXA
Advisors' principal business address is 1290 Avenue of the Americas, New York,
NY 10104.
The contracts are sold by financial professionals who are registered
representatives of AXA Advisors, and its affiliates who are also our licensed
insurance agents. AXA Advisors may also receive compensation and reimbursement
for its marketing services under the terms of its distribution agreement with
Equitable Life. The offering of the contracts is intended to be continuous.
More information 57
9. Investment performance
- --------------------------------------------------------------------------------
The table below shows the average annual total return of the variable
investment options. Average annual total return is the annual rate of growth
that would be necessary to achieve the ending value of a contribution invested
in the variable investment options for the periods shown.
The table takes into account all fees and charges under the contract including
the withdrawal charge and annual administrative charge but does not reflect the
charges designed to approximate certain taxes that may be imposed on us such as
premium taxes in your state, or the annuity administrative fee, if applicable.
The results shown under "Length of option period" are based on the actual
historical investment experience of each variable investment option since its
inception. The results shown under "Length of portfolio period" include some
periods when a variable investment option investing in the Portfolio had not
yet commenced operations. For those periods, we have adjusted the results of
the portfolios to reflect the charges under the contracts that would have
applied had the investment option been available. Since charges under the
contracts vary, we have assumed, for each charge, the highest that might apply.
For the "EQ/Alliance" portfolios (other than EQ/Alliance Premier Growth and
EQ/Alliance Technology), we have adjusted the results prior to October 1996,
when Class IB/B shares for these portfolios were not available, to reflect the
12b-1 fees currently imposed. The results shown for the EQ/Alliance Money
Market, EQ/Balanced, EQ/Alliance Common Stock and EQ/Aggressive Stock options
for periods before those options were operated as part of a unit investment
trust reflect the results of the separate accounts that preceded them. The
"Since portfolio inception" figures for these options are based on the date of
inception of the preceding separate accounts. We have adjusted these results to
reflect the fee and expense structure in effect for Separate Account A as a
unit investment trust. See "The reorganization" in the SAI for additional
information.
EQ Advisors Trust commenced operations on May 1, 1997. For periods prior to
October 18, 1999 the Alliance portfolios (other than EQ/Alliance Premier Growth
and EQ/Alliance Technology) were part of the Hudson River Trust. On October 18,
1999, these portfolios became corresponding portfolios of EQ Advisors Trust. In
each case, the performance shown is for the indicated EQ Advisors Trust
portfolio and any predecessors that it may have had.
AXA Premier VIP Trust commenced operations on December 31, 2001 and performance
information for these portfolios is not available as of the date of this
prospectus.
All rates of return presented are time-weighted and include reinvestment of
investment income, including interest and dividends.
THE PERFORMANCE INFORMATION SHOWN BELOW AND THE PERFORMANCE INFORMATION THAT WE
ADVERTISE REFLECTS PAST PERFORMANCE AND DOES NOT INDICATE HOW THE VARIABLE
INVESTMENT OPTIONS MAY PERFORM IN THE FUTURE. SUCH PERFORMANCE ALSO DOES NOT
REPRESENT THE RESULTS EARNED BY ANY PARTICULAR INVESTOR. YOUR RESULTS WILL
DIFFER.
58 Investment performance
TABLE
AVERAGE ANNUAL TOTAL RETURN UNDER A CONTRACT SURRENDERED ON DECEMBER 31, 2001:
- --------------------------------------------------------------------------------------------
LENGTH OF OPTION PERIOD
-----------------------------------------------------
SINCE OPTION
VARIABLE INVESTMENT OPTIONS 1 YEAR 5 YEARS 10 YEARS INCEPTION+*
- --------------------------------------------------------------------------------------------
EQ/Aggressive Stock (30.05)% (7.09)% 1.01% 8.50%
- --------------------------------------------------------------------------------------------
EQ/Alliance Common Stock (16.56)% 6.39% 10.02% 12.35%
- --------------------------------------------------------------------------------------------
EQ/Alliance Global (25.44)% 0.24% -- 4.31%
- --------------------------------------------------------------------------------------------
EQ/Alliance Growth and Income (7.94)% 10.86% -- 11.46%
- --------------------------------------------------------------------------------------------
EQ/Alliance Growth Investors (18.32)% 3.77% -- 6.10%
- --------------------------------------------------------------------------------------------
EQ/Alliance Intermediate Government
Securities 0.87% 2.28% -- 2.76%
- --------------------------------------------------------------------------------------------
EQ/Alliance International (28.07)% (6.68)% -- (3.38)%
- --------------------------------------------------------------------------------------------
EQ/Alliance Money Market (3.16)% 0.93% 1.06% 3.60%
- --------------------------------------------------------------------------------------------
EQ/Alliance Premier Growth (29.09)% -- -- (17.40)%
- --------------------------------------------------------------------------------------------
EQ/Alliance Quality Bond 0.99% 2.88% -- 3.01%
- --------------------------------------------------------------------------------------------
EQ/Alliance Small Cap Growth (18.88)% -- -- 3.24%
- --------------------------------------------------------------------------------------------
EQ/Alliance Technology (29.54)% -- -- (30.86)%
- --------------------------------------------------------------------------------------------
EQ/AXP New Dimensions (21.21)% -- -- (27.36)%
- --------------------------------------------------------------------------------------------
EQ/AXP Strategy Aggressive (37.95)% -- -- (51.07)%
- --------------------------------------------------------------------------------------------
EQ/Balanced (8.47)% 5.36% 4.19% 7.21%
- --------------------------------------------------------------------------------------------
EQ/Bernstein Diversified Value (3.85)% -- -- (5.00)%
- --------------------------------------------------------------------------------------------
EQ/Calvert Socially Responsible (20.45)% -- -- (8.16)%
- --------------------------------------------------------------------------------------------
EQ/Capital Guardian International (26.22)% -- -- (3.20)%
- --------------------------------------------------------------------------------------------
EQ/Capital Guardian Research (8.62)% -- -- (0.07)%
- --------------------------------------------------------------------------------------------
EQ/Capital Guardian U.S. Equity (8.61)% -- -- (2.86)%
- --------------------------------------------------------------------------------------------
EQ/Emerging Markets Equity (11.55)% -- -- (14.41)%
- --------------------------------------------------------------------------------------------
EQ/Equity 500 Index (17.88)% 6.65% -- 11.65%
- --------------------------------------------------------------------------------------------
EQ/Evergreen Omega (22.60)% -- -- (14.65)%
- --------------------------------------------------------------------------------------------
EQ/FI Mid Cap (19.25)% -- -- (14.83)%
- --------------------------------------------------------------------------------------------
EQ/FI Small/Mid Cap Value (3.01)% -- -- (2.15)%
- --------------------------------------------------------------------------------------------
EQ/High Yield (5.86)% (4.31)% -- 1.41%
- --------------------------------------------------------------------------------------------
EQ/Janus Large Cap Growth (28.15)% -- -- (31.56)%
- --------------------------------------------------------------------------------------------
EQ/Lazard Small Cap Value 9.80% -- -- (3.50)%
- --------------------------------------------------------------------------------------------
EQ/Marsico Focus -- -- -- (1.19)%
- --------------------------------------------------------------------------------------------
EQ/Mercury Basic Value Equity (1.58)% -- -- 8.39%
- --------------------------------------------------------------------------------------------
EQ/MFS Emerging Growth Companies (38.50)% -- -- 3.99%
- --------------------------------------------------------------------------------------------
EQ/MFS Investors Trust (21.64)% -- -- (9.96)%
- --------------------------------------------------------------------------------------------
EQ/MFS Research (27.09)% -- -- 0.52%
- --------------------------------------------------------------------------------------------
EQ/Putnam Growth & Income Value (13.09)% -- -- 0.10%
- --------------------------------------------------------------------------------------------
EQ/Putnam International Equity (26.81)% -- -- (3.01)%
- --------------------------------------------------------------------------------------------
EQ/Putnam Investors Growth (29.55)% -- -- (3.12)%
- --------------------------------------------------------------------------------------------
EQ/T. Rowe Price International Stock (27.10)% -- -- (6.48)%
- --------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------
LENGTH OF PORTFOLIO PERIOD
-----------------------------------------------------
SINCE
PORTFOLIO
VARIABLE INVESTMENT OPTIONS 3 YEARS 5 YEARS 10 YEARS INCEPTION+**
- --------------------------------------------------------------------------------------------
EQ/Aggressive Stock (12.33)% (7.09)% 1.01% 8.50%
- --------------------------------------------------------------------------------------------
EQ/Alliance Common Stock (5.46)% 6.39% 10.02% 9.32%
- --------------------------------------------------------------------------------------------
EQ/Alliance Global (7.60)% 0.24% 5.83% 5.87%
- --------------------------------------------------------------------------------------------
EQ/Alliance Growth and Income 4.28% 10.86% -- 10.57%
- --------------------------------------------------------------------------------------------
EQ/Alliance Growth Investors (3.10)% 3.77% 6.09% 9.43%
- --------------------------------------------------------------------------------------------
EQ/Alliance Intermediate Government
Securities 1.45% 2.28% 2.48% 3.23%
- --------------------------------------------------------------------------------------------
EQ/Alliance International (10.63)% (6.68)% -- (2.34)%
- --------------------------------------------------------------------------------------------
EQ/Alliance Money Market 0.73% 0.93% 1.06% 3.60%
- --------------------------------------------------------------------------------------------
EQ/Alliance Premier Growth -- -- -- (15.14)%
- --------------------------------------------------------------------------------------------
EQ/Alliance Quality Bond 1.48% 2.88% -- 2.36%
- --------------------------------------------------------------------------------------------
EQ/Alliance Small Cap Growth 4.04% -- -- 5.74%
- --------------------------------------------------------------------------------------------
EQ/Alliance Technology -- -- -- (28.24)%
- --------------------------------------------------------------------------------------------
EQ/AXP New Dimensions -- -- -- (27.36)%
- --------------------------------------------------------------------------------------------
EQ/AXP Strategy Aggressive -- -- -- (51.07)%
- --------------------------------------------------------------------------------------------
EQ/Balanced 0.21% 5.36% 4.19% 7.21%
- --------------------------------------------------------------------------------------------
EQ/Bernstein Diversified Value (2.71)% -- -- 1.52%
- --------------------------------------------------------------------------------------------
EQ/Calvert Socially Responsible -- -- -- (9.50)%
- --------------------------------------------------------------------------------------------
EQ/Capital Guardian International -- -- -- (8.30)%
- --------------------------------------------------------------------------------------------
EQ/Capital Guardian Research -- -- -- (0.58)%
- --------------------------------------------------------------------------------------------
EQ/Capital Guardian U.S. Equity -- -- -- (2.63)%
- --------------------------------------------------------------------------------------------
EQ/Emerging Markets Equity (0.63)% -- -- (14.41)%
- --------------------------------------------------------------------------------------------
EQ/Equity 500 Index (5.60)% 6.65% -- 11.10%
- --------------------------------------------------------------------------------------------
EQ/Evergreen Omega -- -- -- (11.16)%
- --------------------------------------------------------------------------------------------
EQ/FI Mid Cap -- -- -- (14.83)%
- --------------------------------------------------------------------------------------------
EQ/FI Small/Mid Cap Value (0.62)% -- -- (0.63)%
- --------------------------------------------------------------------------------------------
EQ/High Yield (7.94)% (4.31)% 4.08% 4.38%
- --------------------------------------------------------------------------------------------
EQ/Janus Large Cap Growth -- -- -- (31.56)%
- --------------------------------------------------------------------------------------------
EQ/Lazard Small Cap Value 8.32% -- -- 2.85%
- --------------------------------------------------------------------------------------------
EQ/Marsico Focus -- -- -- 6.95%
- --------------------------------------------------------------------------------------------
EQ/Mercury Basic Value Equity 7.89% -- -- 10.03%
- --------------------------------------------------------------------------------------------
EQ/MFS Emerging Growth Companies (6.59)% -- -- 5.96%
- --------------------------------------------------------------------------------------------
EQ/MFS Investors Trust -- -- -- (7.37)%
- --------------------------------------------------------------------------------------------
EQ/MFS Research (7.21)% -- -- 2.00%
- --------------------------------------------------------------------------------------------
EQ/Putnam Growth & Income Value (4.83)% -- -- 1.26%
- --------------------------------------------------------------------------------------------
EQ/Putnam International Equity (0.94)% -- -- 4.19%
- --------------------------------------------------------------------------------------------
EQ/Putnam Investors Growth (10.97)% -- -- 2.91%
- --------------------------------------------------------------------------------------------
EQ/T. Rowe Price International Stock (9.87)% -- -- (5.57)%
- --------------------------------------------------------------------------------------------
+ Unannualized (including Since Inception values if time since inception is
less than one year)
* The variable investment option inception dates are: EQ/Aggressive Stock and
EQ/Balanced (1/27/86); EQ/Alliance Money Market (7/31/81); EQ/Alliance
Common Stock (8/27/81); EQ/Equity 500 Index (6/1/94); EQ/Alliance Global,
EQ/Alliance Growth and Income, EQ/Alliance Growth Investors, EQ/Alliance
Quality Bond and EQ/High Yield (1/4/94); EQ/Alliance Intermediate
Government Securities (6/1/94); EQ/Alliance International (9/1/95);
EQ/Alliance Small Cap Growth, EQ/MFS Emerging Growth Companies, EQ/MFS
Research, EQ/Mercury Basic Value Equity, EQ/Putnam Growth & Income Value,
EQ/FI Small/Mid Cap Value (6/2/97); EQ/Emerging Markets Equity (8/20/97);
EQ/Evergreen Omega, EQ/MFS Investors Trust, EQ/Alliance Premier Growth,
EQ/Capital Guardian U.S. Equity, EQ/Capital Guardian International,
EQ/Capital Guardian Research, EQ/Bernstein Diversified Value, EQ/Lazard
Small Cap Value, EQ/Putnam International Equity, EQ/Putnam Voyager
(8/30/99); EQ/Calvert Socially Responsible (9/1/99); EQ/Alliance Technology
(5/22/00); EQ/Janus Large Cap Growth, EQ/FI Mid Cap, EQ/AXP New Dimensions
and EQ/AXP Strategy Aggressive (9/1/00); EQ/Marsico Focus (10/22/01); AXA
Premier VIP Large Cap Growth, AXA Premier VIP Large Cap Core Equity, AXA
Premier VIP Large Cap Value, AXA Premier VIP Small/Mid Cap Growth, AXA
Premier VIP Small/Mid Cap Value, AXA Premier VIP International Equity, AXA
Premier VIP Technology, AXA Premier VIP Health Care, AXA Premier VIP Core
Bond, EQ/International Equity Index, EQ/J.P. Morgan Core Bond and EQ/Small
Company Index (January 14, 2002). No performance information is provided
for portfolios and/or variable investment options with inception dates
after December 31, 2000.
** The inception dates for the portfolios underlying the Alliance variable
investment options shown in the tables are for portfolios of The Hudson
River Trust, the assets of which became assets of corresponding portfolios
of EQ Advisors Trust on 10/18/99. The portfolio inception dates are:
EQ/Aggressive Stock and EQ/Balanced (1/27/86); EQ/Alliance Common Stock
(1/13/76); EQ/Equity 500 Index (3/1/94); EQ/Alliance Global (8/27/87);
EQ/Alliance Growth and Income (10/1/93); EQ/Alliance Growth Investors
(10/2/89); EQ/High Yield (1/2/87); EQ/Alliance Intermediate Government
Securities (4/1/91); EQ/Alliance International (4/3/95); EQ/Alliance Money
Market (7/13/81); EQ/Alliance Quality Bond (10/1/93); EQ/Alliance Small Cap
Growth, EQ/MFS Research, EQ/Mercury Basic Value Equity, EQ/Putnam Growth &
Income Value, EQ/FI Small/Mid Cap Value, EQ/Putnam International Equity and
EQ/Putnam Voyager (5/1/97); EQ/Emerging Markets Equity (8/20/97);
EQ/Evergreen Omega and EQ/MFS Investors Trust (1/1/99); EQ/Bernstein
Diversified Value,
Investment performance 59
EQ/International Equity Index, EQ/J.P. Morgan Core Bond, EQ/Lazard Small Cap
Value and EQ/Small Company Index (1/1/98); EQ/MFS Emerging Growth Companies
(5/1/97); EQ/Alliance Premier Growth, EQ/Capital Guardian International,
EQ/Capital Guardian Research, and EQ/Capital Guardian U.S. Equity (5/1/99);
EQ/Calvert Socially Responsible (9/1/ 99); EQ/Alliance Technology (5/1/00);
EQ/Janus Large Cap Growth, EQ/FI Mid Cap, EQ/AXP New Dimensions and EQ/AXP
Strategy Aggressive (9/1/00); EQ/Marsico Focus (August 31, 2001); AXA Premier
VIP Large Cap Growth, AXA Premier VIP Large Cap Core Equity, AXA Premier VIP
Large Cap Value, AXA Premier VIP Small/Mid Cap Growth, AXA Premier VIP
Small/Mid Cap Value, AXA Premier VIP International Equity, AXA Premier VIP
Healthcare, AXA Premier VIP Core Bond and AXA Premier VIP Technology (December
31, 2001). No performance information is provided for portfolios and/or
variable investment options with inception dates after December 31, 2000.
60 Investment performance
COMMUNICATING PERFORMANCE DATA
In reports or other communications to contract owners or in advertising
material, we may describe general economic and market conditions affecting our
variable investment options and the portfolios and may compare the performance
or ranking of those options and the portfolios with:
o those of other insurance company separate accounts or mutual funds included
in the rankings prepared by Lipper Analytical Services, Inc., Morningstar,
Inc., VARDS, or similar investment services that monitor the performance of
insurance company separate accounts or mutual funds;
o other appropriate indices of investment securities and averages for peer
universes of mutual funds; or
o data developed by us derived from such indices or averages.
We also may furnish to present or prospective contract owners advertisements or
other communications that include evaluations of a variable investment option
or portfolio by nationally recognized financial publications. Examples of such
publications are:
- --------------------------------------------------------------------------------
Barron's Investment Management Weekly
Morningstar's Variable Annuity Money Management Letter
Sourcebook Investment Dealers Digest
Business Week National Underwriter
Forbes Pension & Investments
Fortune USA Today
Institutional Investor Investor's Business Daily
Money The New York Times
Kiplinger's Personal Finance The Wall Street Journal
Financial Planning The Los Angeles Times
Investment Adviser The Chicago Tribune
- --------------------------------------------------------------------------------
From time to time we may also advertise different measurements of the
investment performance of the variable investment options and/or the
portfolios, including the measurements that compare the performance to market
indices that serve as benchmarks. Market indices are not subject to any charges
for investment advisory fees, brokerage commission or other operating expenses
typically associated with a managed portfolio. Also, they do not reflect other
contract charges such as the mortality and expense risks charge, administrative
charge and distribution charge or any withdrawal or optional benefit charge.
Comparisons with these benchmarks, therefore, may be of limited use. We use
them because they are widely known and may help you to understand the universe
of securities from which each portfolio is likely to select its holdings.
Lipper compiles performance data for peer universes of funds with similar
investment objectives in its Lipper Survey. Morningstar, Inc. compiles similar
data in the Morningstar Variable Annuity/Life Report (Morningstar Report).
The Lipper Survey records performance data as reported to it by over 800 mutual
funds underlying variable annuity and life insurance products. It divides these
actively managed portfolios into 25 categories by portfolio objectives.
According to Lipper, the data are presented net of investment management fees,
direct operating expenses and asset-based charges applicable under annuity
contracts. Lipper data provide a more accurate picture than market benchmarks
of the EQUI-VEST(R) performance relative to other variable annuity products.
The Lipper Survey contains two different universes, which reflect different
types of fees in performance data:
o The "separate account" universe reports performance data net of investment
management fees, direct operating expenses and asset-based charges
applicable under variable life and annuity contracts; and
o The "mutual fund" universe reports performance net only of investment
management fees and direct operating expenses, and therefore reflects only
charges that relate to the underlying mutual fund.
The Morningstar Variable Annuity/Life Report consists of nearly 700 variable
life and annuity funds, all of which report their data net of investment
management fees, direct operating expenses and separate account level charges.
VARDS is a monthly reporting service that monitors approximately 2,500 variable
life and variable annuity funds on performance and account information.
YIELD INFORMATION
Current yield for the EQ/Alliance Money Market option will be based on net
changes in a hypothetical investment over a given seven-day period, exclusive
of capital changes, and then "annualized" (assuming that the same seven-day
result would occur each week for 52 weeks). Current yield for the EQ/Alliance
Quality Bond and EQ/High Yield options will be based on net changes in a
hypothetical investment over a given 30-day period, exclusive of capital
changes, and then "annualized" (assuming that the same 30-day result would
occur each month for 12 months).
"Effective yield" is calculated in a similar manner, but when annualized, any
income earned by the investment is assumed to be reinvested. The "effective
yield" will be slightly higher than the "current yield" because any earnings
are compounded weekly for the EQ/Alliance Money Market option. The current
yields and effective yields assume the deduction of all current contract
charges and expenses other than the annual administrative charge, and any
charges for state premium and other applicable taxes. For more information, see
"EQ/Alliance Money Market option yield information" and "Other yield
information" in the SAI.
Investment performance 61
10. Incorporation of certain documents by reference
- --------------------------------------------------------------------------------
Equitable Life's annual report on Form 10-K for the year ended December 31,
2001, is considered to be a part of this prospectus because it is incorporated
by reference.
After the date of this prospectus and before we terminate the offering of the
securities under this prospectus, all documents or reports we file with the SEC
under the Securities Exchange Act of 1934 ("Exchange Act") will be considered
to become part of this prospectus because they are incorporated by reference.
Any statement contained in a document that is or becomes part of this
prospectus, will be considered changed or replaced for purposes of this
prospectus if a statement contained in this prospectus changes or is replaced.
Any statement that is considered to be a part of this prospectus because of its
incorporation, will be considered changed or replaced for the purpose of this
prospectus if a statement contained in any other subsequently filed document
that is considered to be part of this prospectus changes or replaces that
statement. After that, only the statement that is changed or replaced will be
considered to be part of this prospectus.
We file our Exchange Act documents and reports, including our annual report on
Form 10-K and quarterly reports on Form 10-Q, electronically according to EDGAR
under CIK No. 0000727920. The SEC maintains a Web site that contains reports,
proxy and information statements and other information regarding registrants
that file electronically with the SEC. The address of the site is
http://www.sec.gov.
Upon written or oral request, we will provide, free of charge, to each person
to whom this prospectus is delivered a copy of any or all of the documents
considered to be part of this prospectus because they are incorporated herein.
This does not include exhibits not specifically incorporated by reference into
the text of such documents. Requests for documents should be directed to The
Equitable Life Assurance Society of the United States, 1290 Avenue of the
Americas, New York, New York 10104. Attention: Corporate Secretary (telephone:
(212) 554-1234).
62 Incorporation of certain documents by reference
Appendix I: Condensed financial information
- --------------------------------------------------------------------------------
The following tables show the accumulation unit values and the number of
outstanding units for each variable investment option under each contract
series at the last business day of the periods shown. The unit values and
number of units outstanding are for contracts offered under Separate Account A
with the same asset based charge. The information presented is shown for the
past ten years, or from the first year the particular contracts were offered if
less than ten years ago.
SERIES 300 CONTRACTS
UNIT VALUES AND NUMBER OF UNITS OUTSTANDING FOR EACH VARIABLE INVESTMENT OPTION,
EXCEPT FOR THOSE OPTIONS OFFERED FOR THE FIRST TIME ON OR AFTER
DECEMBER 31, 2001.
- -------------------------------------------------------------------------------------------------
FOR THE YEARS
ENDING DECEMBER 31,
- -------------------------------------------------------------------------------------------------
1994 1995
- -------------------------------------------------------------------------------------------------
EQ/AGGRESSIVE STOCK
- -------------------------------------------------------------------------------------------------
Unit value $ 95.45 $ 123.95
- -------------------------------------------------------------------------------------------------
Number of units outstanding (000's) 664 1,310
- -------------------------------------------------------------------------------------------------
EQ/ALLIANCE COMMON STOCK
- -------------------------------------------------------------------------------------------------
Unit value $ 97.03 $ 126.78
- -------------------------------------------------------------------------------------------------
Number of units outstanding (000's) 948 1,989
- -------------------------------------------------------------------------------------------------
EQ/ALLIANCE GLOBAL
- -------------------------------------------------------------------------------------------------
Unit value $104.12 $ 122.06
- -------------------------------------------------------------------------------------------------
Number of units outstanding (000's) 1,305 2,121
- -------------------------------------------------------------------------------------------------
EQ/ALLIANCE GROWTH AND INCOME
- -------------------------------------------------------------------------------------------------
Unit value $ 98.86 $ 121.02
- -------------------------------------------------------------------------------------------------
Number of units outstanding (000's) 210 498
- -------------------------------------------------------------------------------------------------
EQ/ALLIANCE GROWTH INVESTORS
- -------------------------------------------------------------------------------------------------
Unit value $ 96.31 $ 120.08
- -------------------------------------------------------------------------------------------------
Number of units outstanding (000's) 1,023 2,113
- -------------------------------------------------------------------------------------------------
EQ/ALLIANCE INTERMEDIATE GOVERNMENT SECURITIES
- -------------------------------------------------------------------------------------------------
Unit value $ 98.19 $ 109.80
- -------------------------------------------------------------------------------------------------
Number of units outstanding (000s) 32 89
- -------------------------------------------------------------------------------------------------
EQ/ALLIANCE INTERNATIONAL
- -------------------------------------------------------------------------------------------------
Unit value -- $ 104.15
- -------------------------------------------------------------------------------------------------
Number of units outstanding (000's) -- 141
- -------------------------------------------------------------------------------------------------
EQ/ALLIANCE MONEY MARKET
- -------------------------------------------------------------------------------------------------
Unit value $102.61 $ 107.04
- -------------------------------------------------------------------------------------------------
Number of units outstanding (000's) 63 81
- -------------------------------------------------------------------------------------------------
EQ/ALLIANCE PREMIER GROWTH
- -------------------------------------------------------------------------------------------------
Unit value -- --
- -------------------------------------------------------------------------------------------------
Number of units outstanding (000's) -- --
- -------------------------------------------------------------------------------------------------
EQ/ALLIANCE QUALITY BOND
- -------------------------------------------------------------------------------------------------
Unit value $ 93.87 $ 108.38
- -------------------------------------------------------------------------------------------------
Number of units outstanding (000's) 53 135
- -------------------------------------------------------------------------------------------------
EQ/ALLIANCE SMALL CAP GROWTH
- -------------------------------------------------------------------------------------------------
Unit value -- --
- -------------------------------------------------------------------------------------------------
Number of units outstanding (000's) -- --
- -------------------------------------------------------------------------------------------------
EQ/ALLIANCE TECHNOLOGY
- -------------------------------------------------------------------------------------------------
Unit value -- --
- -------------------------------------------------------------------------------------------------
Number of units outstanding (000's) -- --
- -------------------------------------------------------------------------------------------------
EQ/AXP NEW DIMENSIONS
- -------------------------------------------------------------------------------------------------
Unit value -- --
- -------------------------------------------------------------------------------------------------
Number of units outstanding (000's) -- --
- -------------------------------------------------------------------------------------------------
EQ/AXP STRATEGY AGGRESSIVE
- -------------------------------------------------------------------------------------------------
Unit value -- --
- -------------------------------------------------------------------------------------------------
Number of units outstanding (000's) -- --
- -------------------------------------------------------------------------------------------------
EQ/BALANCED
- -------------------------------------------------------------------------------------------------
Unit value $ 91.64 $ 108.26
- -------------------------------------------------------------------------------------------------
Number of units outstanding (000's) 289 386
- -------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------
FOR THE YEARS ENDING DECEMBER 31,
- --------------------------------------------------------------------------------------------------------------
1996 1997 1998
- --------------------------------------------------------------------------------------------------------------
EQ/AGGRESSIVE STOCK
- --------------------------------------------------------------------------------------------------------------
Unit value $ 149.41 $ 163.33 $ 161.59
- --------------------------------------------------------------------------------------------------------------
Number of units outstanding (000's) 2,468 3,226 3,342
- --------------------------------------------------------------------------------------------------------------
EQ/ALLIANCE COMMON STOCK
- --------------------------------------------------------------------------------------------------------------
Unit value $ 155.42 $ 198.12 $ 252.88
- --------------------------------------------------------------------------------------------------------------
Number of units outstanding (000's) 3,457 4,765 5,808
- --------------------------------------------------------------------------------------------------------------
EQ/ALLIANCE GLOBAL
- --------------------------------------------------------------------------------------------------------------
Unit value $ 138.00 $ 151.87 $ 182.50
- --------------------------------------------------------------------------------------------------------------
Number of units outstanding (000's) 2,995 3,369 3,395
- --------------------------------------------------------------------------------------------------------------
EQ/ALLIANCE GROWTH AND INCOME
- --------------------------------------------------------------------------------------------------------------
Unit value $ 143.37 $ 179.30 $ 213.81
- --------------------------------------------------------------------------------------------------------------
Number of units outstanding (000's) 975 1,800 2,475
- --------------------------------------------------------------------------------------------------------------
EQ/ALLIANCE GROWTH INVESTORS
- --------------------------------------------------------------------------------------------------------------
Unit value $ 133.40 $ 153.69 $ 180.63
- --------------------------------------------------------------------------------------------------------------
Number of units outstanding (000's) 3,325 3,704 3,962
- --------------------------------------------------------------------------------------------------------------
EQ/ALLIANCE INTERMEDIATE GOVERNMENT SECURITIES
- --------------------------------------------------------------------------------------------------------------
Unit value $ 112.40 $ 118.98 $ 126.48
- --------------------------------------------------------------------------------------------------------------
Number of units outstanding (000s) 146 202 314
- --------------------------------------------------------------------------------------------------------------
EQ/ALLIANCE INTERNATIONAL
- --------------------------------------------------------------------------------------------------------------
Unit value $ 112.83 $ 107.92 $ 117.72
- --------------------------------------------------------------------------------------------------------------
Number of units outstanding (000's) 763 968 971
- --------------------------------------------------------------------------------------------------------------
EQ/ALLIANCE MONEY MARKET
- --------------------------------------------------------------------------------------------------------------
Unit value $ 111.21 $ 115.66 $ 120.19
- --------------------------------------------------------------------------------------------------------------
Number of units outstanding (000's) 165 146 262
- --------------------------------------------------------------------------------------------------------------
EQ/ALLIANCE PREMIER GROWTH
- --------------------------------------------------------------------------------------------------------------
Unit value -- -- --
- --------------------------------------------------------------------------------------------------------------
Number of units outstanding (000's) -- -- --
- --------------------------------------------------------------------------------------------------------------
EQ/ALLIANCE QUALITY BOND
- --------------------------------------------------------------------------------------------------------------
Unit value $ 112.65 $ 121.30 $ 130.07
- --------------------------------------------------------------------------------------------------------------
Number of units outstanding (000's) 196 283 557
- --------------------------------------------------------------------------------------------------------------
EQ/ALLIANCE SMALL CAP GROWTH
- --------------------------------------------------------------------------------------------------------------
Unit value -- $ 125.55 $ 118.57
- --------------------------------------------------------------------------------------------------------------
Number of units outstanding (000's) -- 488 1,101
- --------------------------------------------------------------------------------------------------------------
EQ/ALLIANCE TECHNOLOGY
- --------------------------------------------------------------------------------------------------------------
Unit value -- -- --
- --------------------------------------------------------------------------------------------------------------
Number of units outstanding (000's) -- -- --
- --------------------------------------------------------------------------------------------------------------
EQ/AXP NEW DIMENSIONS
- --------------------------------------------------------------------------------------------------------------
Unit value -- -- --
- --------------------------------------------------------------------------------------------------------------
Number of units outstanding (000's) -- -- --
- --------------------------------------------------------------------------------------------------------------
EQ/AXP STRATEGY AGGRESSIVE
- --------------------------------------------------------------------------------------------------------------
Unit value -- -- --
- --------------------------------------------------------------------------------------------------------------
Number of units outstanding (000's) -- -- --
- --------------------------------------------------------------------------------------------------------------
EQ/BALANCED
- --------------------------------------------------------------------------------------------------------------
Unit value $ 119.26 $ 135.29 $ 157.63
- --------------------------------------------------------------------------------------------------------------
Number of units outstanding (000's) 548 655 752
- --------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------
FOR THE YEARS ENDING DECEMBER 31,
- --------------------------------------------------------------------------------------------------------------
1999 2000 2001
- --------------------------------------------------------------------------------------------------------------
EQ/AGGRESSIVE STOCK
- --------------------------------------------------------------------------------------------------------------
Unit value $ 189.44 $ 162.34 $ 120.13
- --------------------------------------------------------------------------------------------------------------
Number of units outstanding (000's) 2,980 2,607 2,242
- --------------------------------------------------------------------------------------------------------------
EQ/ALLIANCE COMMON STOCK
- --------------------------------------------------------------------------------------------------------------
Unit value $ 312.31 $ 264.88 $ 233.80
- --------------------------------------------------------------------------------------------------------------
Number of units outstanding (000's) 6,502 6,233 5,579
- --------------------------------------------------------------------------------------------------------------
EQ/ALLIANCE GLOBAL
- --------------------------------------------------------------------------------------------------------------
Unit value $ 249.93 $ 200.17 $ 157.88
- --------------------------------------------------------------------------------------------------------------
Number of units outstanding (000's) 3,509 3,712 3,331
- --------------------------------------------------------------------------------------------------------------
EQ/ALLIANCE GROWTH AND INCOME
- --------------------------------------------------------------------------------------------------------------
Unit value $ 250.31 $ 269.09 $ 262.05
- --------------------------------------------------------------------------------------------------------------
Number of units outstanding (000's) 3,095 3,352 3,789
- --------------------------------------------------------------------------------------------------------------
EQ/ALLIANCE GROWTH INVESTORS
- --------------------------------------------------------------------------------------------------------------
Unit value $ 225.59 $ 207.65 $ 179.41
- --------------------------------------------------------------------------------------------------------------
Number of units outstanding (000's) 4,231 4,354 3,967
- --------------------------------------------------------------------------------------------------------------
EQ/ALLIANCE INTERMEDIATE GOVERNMENT SECURITIES
- --------------------------------------------------------------------------------------------------------------
Unit value $ 124.96 $ 134.60 $ 143.62
- --------------------------------------------------------------------------------------------------------------
Number of units outstanding (000s) 360 309 587
- --------------------------------------------------------------------------------------------------------------
EQ/ALLIANCE INTERNATIONAL
- --------------------------------------------------------------------------------------------------------------
Unit value $ 160.04 $ 121.54 $ 92.48
- --------------------------------------------------------------------------------------------------------------
Number of units outstanding (000's) 926 1,028 945
- --------------------------------------------------------------------------------------------------------------
EQ/ALLIANCE MONEY MARKET
- --------------------------------------------------------------------------------------------------------------
Unit value $ 124.47 $ 130.47 $ 133.66
- --------------------------------------------------------------------------------------------------------------
Number of units outstanding (000's) 360 297 395
- --------------------------------------------------------------------------------------------------------------
EQ/ALLIANCE PREMIER GROWTH
- --------------------------------------------------------------------------------------------------------------
Unit value $ 116.36 $ 93.70 $ 70.28
- --------------------------------------------------------------------------------------------------------------
Number of units outstanding (000's) 887 2,596 2,788
- --------------------------------------------------------------------------------------------------------------
EQ/ALLIANCE QUALITY BOND
- --------------------------------------------------------------------------------------------------------------
Unit value $ 125.76 $ 138.33 $ 147.79
- --------------------------------------------------------------------------------------------------------------
Number of units outstanding (000's) 622 566 899
- --------------------------------------------------------------------------------------------------------------
EQ/ALLIANCE SMALL CAP GROWTH
- --------------------------------------------------------------------------------------------------------------
Unit value $ 149.64 $ 168.29 $ 144.40
- --------------------------------------------------------------------------------------------------------------
Number of units outstanding (000's) 976 1,895 1,988
- --------------------------------------------------------------------------------------------------------------
EQ/ALLIANCE TECHNOLOGY
- --------------------------------------------------------------------------------------------------------------
Unit value -- $ 66.10 $ 49.27
- --------------------------------------------------------------------------------------------------------------
Number of units outstanding (000's) -- 1,313 1,757
- --------------------------------------------------------------------------------------------------------------
EQ/AXP NEW DIMENSIONS
- --------------------------------------------------------------------------------------------------------------
Unit value -- $ 82.87 $ 69.07
- --------------------------------------------------------------------------------------------------------------
Number of units outstanding (000's) -- 41 105
- --------------------------------------------------------------------------------------------------------------
EQ/AXP STRATEGY AGGRESSIVE
- --------------------------------------------------------------------------------------------------------------
Unit value -- $ 62.12 $ 40.77
- --------------------------------------------------------------------------------------------------------------
Number of units outstanding (000's) -- 54 113
- --------------------------------------------------------------------------------------------------------------
EQ/BALANCED
- --------------------------------------------------------------------------------------------------------------
Unit value $ 183.18 $ 178.32 $ 172.66
- --------------------------------------------------------------------------------------------------------------
Number of units outstanding (000's) 854 846 1,334
- --------------------------------------------------------------------------------------------------------------
Appendix I: Condensed financial information A-1
SERIES 300 CONTRACTS (CONTINUED)
UNIT VALUES AND NUMBER OF UNITS OUTSTANDING FOR EACH VARIABLE INVESTMENT
OPTION, EXCEPT FOR THOSE OPTIONS OFFERED
FOR THE FIRST TIME ON OR AFTER DECEMBER 31, 2001.
- --------------------------------------------------------------------------------------------------------------
FOR THE YEARS
ENDING DECEMBER 31,
- --------------------------------------------------------------------------------------------------------------
1994 1995
- --------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------
EQ/BERNSTEIN DIVERSIFIED VALUE
- --------------------------------------------------------------------------------------------------------------
Unit value -- --
- --------------------------------------------------------------------------------------------------------------
Number of units outstanding (000s) -- --
- --------------------------------------------------------------------------------------------------------------
EQ/CALVERT SOCIALLY RESPONSIBLE
- --------------------------------------------------------------------------------------------------------------
Unit value -- --
- --------------------------------------------------------------------------------------------------------------
Number of units outstanding (000s) -- --
- --------------------------------------------------------------------------------------------------------------
CAPITAL GUARDIAN RESEARCH
- --------------------------------------------------------------------------------------------------------------
Unit value -- --
- --------------------------------------------------------------------------------------------------------------
Number of units outstanding (000's) -- --
- --------------------------------------------------------------------------------------------------------------
EQ/CAPITAL GUARDIAN U.S. EQUITY
- --------------------------------------------------------------------------------------------------------------
Unit value -- --
- --------------------------------------------------------------------------------------------------------------
Number of units outstanding (000's) -- --
- --------------------------------------------------------------------------------------------------------------
EQ/EMERGING MARKETS EQUITY
- --------------------------------------------------------------------------------------------------------------
Unit value -- --
- --------------------------------------------------------------------------------------------------------------
Number of units outstanding (000's) -- --
- --------------------------------------------------------------------------------------------------------------
EQ/EQUITY 500 INDEX
- --------------------------------------------------------------------------------------------------------------
Unit value $ 100.95 $ 135.94
- --------------------------------------------------------------------------------------------------------------
Number of units outstanding (000's) 47 592
- --------------------------------------------------------------------------------------------------------------
EQ/EVERGREEN OMEGA
- --------------------------------------------------------------------------------------------------------------
Unit value -- --
- --------------------------------------------------------------------------------------------------------------
Number of units outstanding (000's) -- --
- --------------------------------------------------------------------------------------------------------------
EQ/FI MID CAP
- --------------------------------------------------------------------------------------------------------------
Unit value -- --
- --------------------------------------------------------------------------------------------------------------
Number of units outstanding (000's) -- --
- --------------------------------------------------------------------------------------------------------------
EQ/FI SMALL/MID CAP VALUE
- --------------------------------------------------------------------------------------------------------------
Unit value -- --
- --------------------------------------------------------------------------------------------------------------
Number of units outstanding (000's) -- --
- --------------------------------------------------------------------------------------------------------------
EQ/HIGH YIELD
- --------------------------------------------------------------------------------------------------------------
Unit value $ 95.88 $ 113.44
- --------------------------------------------------------------------------------------------------------------
Number of units outstanding (000's) 99 209
- --------------------------------------------------------------------------------------------------------------
EQ/JANUS LARGE CAP GROWTH
- --------------------------------------------------------------------------------------------------------------
Unit value -- --
- --------------------------------------------------------------------------------------------------------------
Number of units outstanding (000's) -- --
- --------------------------------------------------------------------------------------------------------------
EQ/MARSICO FOCUS
- --------------------------------------------------------------------------------------------------------------
Unit value -- --
- --------------------------------------------------------------------------------------------------------------
Number of units outstanding (000s) -- --
- --------------------------------------------------------------------------------------------------------------
EQ/MERCURY BASIC VALUE EQUITY
- --------------------------------------------------------------------------------------------------------------
Unit value -- --
- --------------------------------------------------------------------------------------------------------------
Number of units outstanding (000's) -- --
- --------------------------------------------------------------------------------------------------------------
EQ/MFS EMERGING GROWTH COMPANIES
- --------------------------------------------------------------------------------------------------------------
Unit value -- --
- --------------------------------------------------------------------------------------------------------------
Number of units outstanding (000's) -- --
- --------------------------------------------------------------------------------------------------------------
EQ/MFS INVESTORS TRUST
- --------------------------------------------------------------------------------------------------------------
Unit value -- --
- --------------------------------------------------------------------------------------------------------------
Number of units outstanding (000's) -- --
- --------------------------------------------------------------------------------------------------------------
EQ/MFS RESEARCH
- --------------------------------------------------------------------------------------------------------------
Unit value -- --
- --------------------------------------------------------------------------------------------------------------
Number of units outstanding (000's) -- --
- --------------------------------------------------------------------------------------------------------------
EQ/PUTNAM GROWTH & INCOME VALUE
- --------------------------------------------------------------------------------------------------------------
Unit value -- --
- --------------------------------------------------------------------------------------------------------------
Number of units outstanding (000's) -- --
- --------------------------------------------------------------------------------------------------------------
EQ/T. ROWE PRICE INTERNATIONAL STOCK
- --------------------------------------------------------------------------------------------------------------
Unit value -- --
- --------------------------------------------------------------------------------------------------------------
Number of units outstanding (000's) -- --
- --------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------
FOR THE YEARS ENDING DECEMBER 31,
- --------------------------------------------------------------------------------------------------------------
1996 1997 1998
- --------------------------------------------------------------------------------------------------------------
EQ/BERNSTEIN DIVERSIFIED VALUE
- --------------------------------------------------------------------------------------------------------------
Unit value -- -- --
- --------------------------------------------------------------------------------------------------------------
Number of units outstanding (000s) -- -- --
- --------------------------------------------------------------------------------------------------------------
EQ/CALVERT SOCIALLY RESPONSIBLE
- --------------------------------------------------------------------------------------------------------------
Unit value -- -- --
- --------------------------------------------------------------------------------------------------------------
Number of units outstanding (000s) -- -- --
- --------------------------------------------------------------------------------------------------------------
CAPITAL GUARDIAN RESEARCH
- --------------------------------------------------------------------------------------------------------------
Unit value -- -- --
- --------------------------------------------------------------------------------------------------------------
Number of units outstanding (000's) -- -- --
- --------------------------------------------------------------------------------------------------------------
EQ/CAPITAL GUARDIAN U.S. EQUITY
- --------------------------------------------------------------------------------------------------------------
Unit value -- -- --
- --------------------------------------------------------------------------------------------------------------
Number of units outstanding (000's) -- -- --
- --------------------------------------------------------------------------------------------------------------
EQ/EMERGING MARKETS EQUITY
- --------------------------------------------------------------------------------------------------------------
Unit value -- $ 79.41 $ 57.18
- --------------------------------------------------------------------------------------------------------------
Number of units outstanding (000's) -- 109 217
- --------------------------------------------------------------------------------------------------------------
EQ/EQUITY 500 INDEX
- --------------------------------------------------------------------------------------------------------------
Unit value $ 164.12 $ 214.66 $ 271.24
- --------------------------------------------------------------------------------------------------------------
Number of units outstanding (000's) 1,486 2,686 3,805
- --------------------------------------------------------------------------------------------------------------
EQ/EVERGREEN OMEGA
- --------------------------------------------------------------------------------------------------------------
Unit value -- -- --
- --------------------------------------------------------------------------------------------------------------
Number of units outstanding (000's) -- -- --
- --------------------------------------------------------------------------------------------------------------
EQ/FI MID CAP
- --------------------------------------------------------------------------------------------------------------
Unit value -- -- --
- --------------------------------------------------------------------------------------------------------------
Number of units outstanding (000's) -- -- --
- --------------------------------------------------------------------------------------------------------------
EQ/FI SMALL/MID CAP VALUE
- --------------------------------------------------------------------------------------------------------------
Unit value -- $ 118.06 $ 104.82
- --------------------------------------------------------------------------------------------------------------
Number of units outstanding (000's) -- 577 859
- --------------------------------------------------------------------------------------------------------------
EQ/HIGH YIELD
- --------------------------------------------------------------------------------------------------------------
Unit value $ 137.53 $ 160.74 $ 150.42
- --------------------------------------------------------------------------------------------------------------
Number of units outstanding (000's) 444 831 1,164
- --------------------------------------------------------------------------------------------------------------
EQ/JANUS LARGE CAP GROWTH
- --------------------------------------------------------------------------------------------------------------
Unit value -- -- --
- --------------------------------------------------------------------------------------------------------------
Number of units outstanding (000's) -- -- --
- --------------------------------------------------------------------------------------------------------------
EQ/MARSICO FOCUS
- --------------------------------------------------------------------------------------------------------------
Unit value -- -- --
- --------------------------------------------------------------------------------------------------------------
Number of units outstanding (000s) -- -- --
- --------------------------------------------------------------------------------------------------------------
EQ/MERCURY BASIC VALUE EQUITY
- --------------------------------------------------------------------------------------------------------------
Unit value -- $ 115.97 $ 127.67
- --------------------------------------------------------------------------------------------------------------
Number of units outstanding (000's) -- 145 444
- --------------------------------------------------------------------------------------------------------------
EQ/MFS EMERGING GROWTH COMPANIES
- --------------------------------------------------------------------------------------------------------------
Unit value -- $ 121.34 $ 161.04
- --------------------------------------------------------------------------------------------------------------
Number of units outstanding (000's) -- 256 1,090
- --------------------------------------------------------------------------------------------------------------
EQ/MFS INVESTORS TRUST
- --------------------------------------------------------------------------------------------------------------
Unit value -- -- --
- --------------------------------------------------------------------------------------------------------------
Number of units outstanding (000's) -- -- --
- --------------------------------------------------------------------------------------------------------------
EQ/MFS RESEARCH
- --------------------------------------------------------------------------------------------------------------
Unit value -- $ 115.01 $ 140.83
- --------------------------------------------------------------------------------------------------------------
Number of units outstanding (000's) -- 236 720
- --------------------------------------------------------------------------------------------------------------
EQ/PUTNAM GROWTH & INCOME VALUE
- --------------------------------------------------------------------------------------------------------------
Unit value -- $ 115.17 $ 128.20
- --------------------------------------------------------------------------------------------------------------
Number of units outstanding (000's) -- 250 581
- --------------------------------------------------------------------------------------------------------------
EQ/T. ROWE PRICE INTERNATIONAL STOCK
- --------------------------------------------------------------------------------------------------------------
Unit value -- $ 97.61 $ 109.49
- --------------------------------------------------------------------------------------------------------------
Number of units outstanding (000's) -- 387 671
- --------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------
FOR THE YEARS ENDING DECEMBER 31,
- --------------------------------------------------------------------------------------------------------------
1999 2000 2001
- --------------------------------------------------------------------------------------------------------------
EQ/BERNSTEIN DIVERSIFIED VALUE
- --------------------------------------------------------------------------------------------------------------
Unit value -- -- $ 94.39
- --------------------------------------------------------------------------------------------------------------
Number of units outstanding (000s) -- -- 1,544
- --------------------------------------------------------------------------------------------------------------
EQ/CALVERT SOCIALLY RESPONSIBLE
- --------------------------------------------------------------------------------------------------------------
Unit value $ 107.58 $ 103.06 $ 86.73
- --------------------------------------------------------------------------------------------------------------
Number of units outstanding (000s) 4 15 33
- --------------------------------------------------------------------------------------------------------------
CAPITAL GUARDIAN RESEARCH
- --------------------------------------------------------------------------------------------------------------
Unit value $ 106.78 $ 111.59 $ 107.86
- --------------------------------------------------------------------------------------------------------------
Number of units outstanding (000's) 8 44 95
- --------------------------------------------------------------------------------------------------------------
EQ/CAPITAL GUARDIAN U.S. EQUITY
- --------------------------------------------------------------------------------------------------------------
Unit value $ 101.64 $ 103.88 $ 100.43
- --------------------------------------------------------------------------------------------------------------
Number of units outstanding (000's) 13 34 96
- --------------------------------------------------------------------------------------------------------------
EQ/EMERGING MARKETS EQUITY
- --------------------------------------------------------------------------------------------------------------
Unit value $ 110.43 $ 65.32 $ 61.12
- --------------------------------------------------------------------------------------------------------------
Number of units outstanding (000's) 590 926 850
- --------------------------------------------------------------------------------------------------------------
EQ/EQUITY 500 INDEX
- --------------------------------------------------------------------------------------------------------------
Unit value $ 322.15 $ 287.40 $ 249.66
- --------------------------------------------------------------------------------------------------------------
Number of units outstanding (000's) 4,579 4,346 4,083
- --------------------------------------------------------------------------------------------------------------
EQ/EVERGREEN OMEGA
- --------------------------------------------------------------------------------------------------------------
Unit value $ 106.57 $ 92.84 $ 76.01
- --------------------------------------------------------------------------------------------------------------
Number of units outstanding (000's) 5 18 33
- --------------------------------------------------------------------------------------------------------------
EQ/FI MID CAP
- --------------------------------------------------------------------------------------------------------------
Unit value -- $ 99.98 $ 85.41
- --------------------------------------------------------------------------------------------------------------
Number of units outstanding (000's) -- 86 420
- --------------------------------------------------------------------------------------------------------------
EQ/FI SMALL/MID CAP VALUE
- --------------------------------------------------------------------------------------------------------------
Unit value $ 105.28 $ 109.21 $ 112.05
- --------------------------------------------------------------------------------------------------------------
Number of units outstanding (000's) 721 628 1,238
- --------------------------------------------------------------------------------------------------------------
EQ/HIGH YIELD
- --------------------------------------------------------------------------------------------------------------
Unit value $ 143.43 $ 129.28 $ 128.74
- --------------------------------------------------------------------------------------------------------------
Number of units outstanding (000's) 998 800 770
- --------------------------------------------------------------------------------------------------------------
EQ/JANUS LARGE CAP GROWTH
- --------------------------------------------------------------------------------------------------------------
Unit value -- $ 83.95 $ 63.80
- --------------------------------------------------------------------------------------------------------------
Number of units outstanding (000's) -- 165 464
- --------------------------------------------------------------------------------------------------------------
EQ/MARSICO FOCUS
- --------------------------------------------------------------------------------------------------------------
Unit value -- -- 105.89
- --------------------------------------------------------------------------------------------------------------
Number of units outstanding (000s) -- -- --
- --------------------------------------------------------------------------------------------------------------
EQ/MERCURY BASIC VALUE EQUITY
- --------------------------------------------------------------------------------------------------------------
Unit value $ 149.82 $ 165.27 $ 172.07
- --------------------------------------------------------------------------------------------------------------
Number of units outstanding (000's) 617 634 1,044
- --------------------------------------------------------------------------------------------------------------
EQ/MFS EMERGING GROWTH COMPANIES
- --------------------------------------------------------------------------------------------------------------
Unit value $ 275.93 $ 220.97 $ 143.76
- --------------------------------------------------------------------------------------------------------------
Number of units outstanding (000's) 2,427 3,720 3,422
- --------------------------------------------------------------------------------------------------------------
EQ/MFS INVESTORS TRUST
- --------------------------------------------------------------------------------------------------------------
Unit value $ 104.48 $ 102.37 $ 84.85
- --------------------------------------------------------------------------------------------------------------
Number of units outstanding (000's) 18 68 87
- --------------------------------------------------------------------------------------------------------------
EQ/MFS RESEARCH
- --------------------------------------------------------------------------------------------------------------
Unit value $ 171.06 $ 159.89 $ 123.32
- --------------------------------------------------------------------------------------------------------------
Number of units outstanding (000's) 959 1,258 1,124
- --------------------------------------------------------------------------------------------------------------
EQ/PUTNAM GROWTH & INCOME VALUE
- --------------------------------------------------------------------------------------------------------------
Unit value $ 124.76 $ 131.45 $ 120.85
- --------------------------------------------------------------------------------------------------------------
Number of units outstanding (000's) 648 521 532
- --------------------------------------------------------------------------------------------------------------
EQ/T. ROWE PRICE INTERNATIONAL STOCK
- --------------------------------------------------------------------------------------------------------------
Unit value $ 142.46 $ 114.30 $ 88.15
- --------------------------------------------------------------------------------------------------------------
Number of units outstanding (000's) 765 871 896
- --------------------------------------------------------------------------------------------------------------
A-2 Appendix I: Condensed financial information
SERIES 100 CONTRACTS
UNIT VALUES AND NUMBER OF UNITS OUTSTANDING FOR EACH VARIABLE INVESTMENT
OPTION, EXCEPT FOR THOSE OPTIONS OFFERED
FOR THE FIRST TIME ON OR AFTER DECEMBER 31, 2001.
- --------------------------------------------------------------------------------------------------------------
FOR THE YEARS
ENDING DECEMBER 31,
- --------------------------------------------------------------------------------------------------------------
1992 1993
- --------------------------------------------------------------------------------------------------------------
EQ/AGGRESSIVE STOCK
- --------------------------------------------------------------------------------------------------------------
Unit value $ 48.30 $ 55.68
- --------------------------------------------------------------------------------------------------------------
Number of units outstanding (000's) 17,986 21,496
--------------------------------------------------------------------------------------------------------------
EQ/ALLIANCE COMMON STOCK
- --------------------------------------------------------------------------------------------------------------
Unit value $104.63 $ 128.81
- --------------------------------------------------------------------------------------------------------------
Number of units outstanding (000's) 11,841 13,917
- --------------------------------------------------------------------------------------------------------------
EQ/ALLIANCE GLOBAL
- --------------------------------------------------------------------------------------------------------------
Unit value -- --
- --------------------------------------------------------------------------------------------------------------
Number of units outstanding (000's) -- --
- --------------------------------------------------------------------------------------------------------------
EQ/ALLIANCE GROWTH AND INCOME
- --------------------------------------------------------------------------------------------------------------
Unit value -- --
- --------------------------------------------------------------------------------------------------------------
Number of units outstanding (000's) -- --
- --------------------------------------------------------------------------------------------------------------
EQ/ALLIANCE GROWTH INVESTORS
- --------------------------------------------------------------------------------------------------------------
Unit value -- --
- --------------------------------------------------------------------------------------------------------------
Number of units outstanding (000's) -- --
- --------------------------------------------------------------------------------------------------------------
EQ/ALLIANCE INTEMEDIATE GOVERNMENT SECURITIES
- --------------------------------------------------------------------------------------------------------------
Unit value -- --
- --------------------------------------------------------------------------------------------------------------
Number of units outstanding (000's) -- --
- --------------------------------------------------------------------------------------------------------------
EQ/ALLIANCE INTERNATIONAL
- --------------------------------------------------------------------------------------------------------------
Unit value -- --
- --------------------------------------------------------------------------------------------------------------
Number of units outstanding (000's) -- --
- --------------------------------------------------------------------------------------------------------------
EQ/ALLIANCE MONEY MARKET
Unit value $ 25.01 $ 25.41
- --------------------------------------------------------------------------------------------------------------
Number of units outstanding (000's) 1,201 1,065
- --------------------------------------------------------------------------------------------------------------
EQ/ALLIANCE PREMIER GROWTH
- --------------------------------------------------------------------------------------------------------------
Unit value -- --
- --------------------------------------------------------------------------------------------------------------
Number of units outstanding (000's) -- --
- --------------------------------------------------------------------------------------------------------------
EQ/ALLIANCE QUALITY BOND
Unit value -- --
- --------------------------------------------------------------------------------------------------------------
Number of units outstanding (000's) -- --
- --------------------------------------------------------------------------------------------------------------
EQ/ALLIANCE SMALL CAP GROWTH
- --------------------------------------------------------------------------------------------------------------
Unit value -- --
- --------------------------------------------------------------------------------------------------------------
Number of units outstanding (000's) -- --
- --------------------------------------------------------------------------------------------------------------
EQ/ALLIANCE TECHNOLOGY
- --------------------------------------------------------------------------------------------------------------
Unit value -- --
- --------------------------------------------------------------------------------------------------------------
Number of units outstanding (000's) -- --
- --------------------------------------------------------------------------------------------------------------
EQ/AXP NEW DIMENSIONS
- --------------------------------------------------------------------------------------------------------------
Unit value -- --
- --------------------------------------------------------------------------------------------------------------
Number of units outstanding (000's) -- --
- --------------------------------------------------------------------------------------------------------------
EQ/AXP STRATEGY AGGRESSIVE
- --------------------------------------------------------------------------------------------------------------
Unit value -- --
- --------------------------------------------------------------------------------------------------------------
Number of units outstanding (000's) -- --
- --------------------------------------------------------------------------------------------------------------
EQ/BALANCED
- --------------------------------------------------------------------------------------------------------------
Unit value $ 26.04 $ 28.85
- --------------------------------------------------------------------------------------------------------------
Number of units outstanding (000's) 25,975 31,259
- --------------------------------------------------------------------------------------------------------------
EQ/BERNSTEIN DIVERSIFIED VALUE
- --------------------------------------------------------------------------------------------------------------
Unit value -- --
- --------------------------------------------------------------------------------------------------------------
Number of units outstanding (000's) -- --
- --------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------
FOR THE YEARS ENDING DECEMBER 31,
- --------------------------------------------------------------------------------------------------------------
1994 1995 1996
- --------------------------------------------------------------------------------------------------------------
EQ/AGGRESSIVE STOCK
- --------------------------------------------------------------------------------------------------------------
Unit value $ 52.88 $ 68.73 $ 82.91
- --------------------------------------------------------------------------------------------------------------
Number of units outstanding (000's) 24,787 25,821 27,945
- --------------------------------------------------------------------------------------------------------------
EQ/ALLIANCE COMMON STOCK
- --------------------------------------------------------------------------------------------------------------
Unit value $ 124.32 $ 162.42 $ 199.05
- --------------------------------------------------------------------------------------------------------------
Number of units outstanding (000's) 15,749 16,292 16,933
- --------------------------------------------------------------------------------------------------------------
EQ/ALLIANCE GLOBAL
- --------------------------------------------------------------------------------------------------------------
Unit value $ 104.12 $ 122.06 $ 138.00
- --------------------------------------------------------------------------------------------------------------
Number of units outstanding (000's) 1,305 2,121 2,995
- --------------------------------------------------------------------------------------------------------------
EQ/ALLIANCE GROWTH AND INCOME
- --------------------------------------------------------------------------------------------------------------
Unit value $ 98.86 $ 121.02 $ 143.37
- --------------------------------------------------------------------------------------------------------------
Number of units outstanding (000's) 210 498 975
- --------------------------------------------------------------------------------------------------------------
EQ/ALLIANCE GROWTH INVESTORS
- --------------------------------------------------------------------------------------------------------------
Unit value $ 96.31 $ 120.08 $ 133.40
- --------------------------------------------------------------------------------------------------------------
Number of units outstanding (000's) 1,023 2,113 3,325
- --------------------------------------------------------------------------------------------------------------
EQ/ALLIANCE INTEMEDIATE GOVERNMENT SECURITIES
- --------------------------------------------------------------------------------------------------------------
Unit value $ 98.19 $ 109.80 $ 112.40
- --------------------------------------------------------------------------------------------------------------
Number of units outstanding (000's) 32 89 146
- --------------------------------------------------------------------------------------------------------------
EQ/ALLIANCE INTERNATIONAL
- --------------------------------------------------------------------------------------------------------------
Unit value -- $ 104.15 $ 112.83
- --------------------------------------------------------------------------------------------------------------
Number of units outstanding (000's) -- 141 763
- --------------------------------------------------------------------------------------------------------------
EQ/ALLIANCE MONEY MARKET
- --------------------------------------------------------------------------------------------------------------
Unit value $ 26.08 $ 27.22 $ 28.28
- --------------------------------------------------------------------------------------------------------------
Number of units outstanding (000's) 1,000 1,021 1,013
- --------------------------------------------------------------------------------------------------------------
EQ/ALLIANCE PREMIER GROWTH
- --------------------------------------------------------------------------------------------------------------
Unit value -- -- --
- --------------------------------------------------------------------------------------------------------------
Number of units outstanding (000's) -- -- --
- --------------------------------------------------------------------------------------------------------------
EQ/ALLIANCE QUALITY BOND
- --------------------------------------------------------------------------------------------------------------
Unit value $ 93.87 $ 108.38 $ 112.65
- --------------------------------------------------------------------------------------------------------------
Number of units outstanding (000's) 53 135 196
- --------------------------------------------------------------------------------------------------------------
EQ/ALLIANCE SMALL CAP GROWTH
- --------------------------------------------------------------------------------------------------------------
Unit value -- -- --
- --------------------------------------------------------------------------------------------------------------
Number of units outstanding (000's) -- -- --
- --------------------------------------------------------------------------------------------------------------
EQ/ALLIANCE TECHNOLOGY
- --------------------------------------------------------------------------------------------------------------
Unit value -- -- --
- --------------------------------------------------------------------------------------------------------------
Number of units outstanding (000's) -- -- --
- --------------------------------------------------------------------------------------------------------------
EQ/AXP NEW DIMENSIONS
- --------------------------------------------------------------------------------------------------------------
Unit value -- -- --
- --------------------------------------------------------------------------------------------------------------
Number of units outstanding (000's) -- -- --
- --------------------------------------------------------------------------------------------------------------
EQ/AXP STRATEGY AGGRESSIVE
- --------------------------------------------------------------------------------------------------------------
Unit value -- -- --
- --------------------------------------------------------------------------------------------------------------
Number of units outstanding (000's) -- -- --
- --------------------------------------------------------------------------------------------------------------
EQ/BALANCED
- --------------------------------------------------------------------------------------------------------------
Unit value $ 26.18 $ 30.92 $ 34.06
- --------------------------------------------------------------------------------------------------------------
Number of units outstanding (000's) 32,664 30,212 28,319
- --------------------------------------------------------------------------------------------------------------
EQ/BERNSTEIN DIVERSIFIED VALUE
- --------------------------------------------------------------------------------------------------------------
Unit value -- -- --
- --------------------------------------------------------------------------------------------------------------
Number of units outstanding (000's) -- -- --
- --------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------
FOR THE YEARS ENDING DECEMBER 31,
- --------------------------------------------------------------------------------------------------------------
1997 1998 1999
- --------------------------------------------------------------------------------------------------------------
EQ/AGGRESSIVE STOCK
- --------------------------------------------------------------------------------------------------------------
Unit value $ 90.75 $ 89.92 $ 105.59
- --------------------------------------------------------------------------------------------------------------
Number of units outstanding (000's) 28,030 25,634 20,946
- --------------------------------------------------------------------------------------------------------------
EQ/ALLIANCE COMMON STOCK
- --------------------------------------------------------------------------------------------------------------
Unit value $ 253.68 $ 323.75 $ 399.74
- --------------------------------------------------------------------------------------------------------------
Number of units outstanding (000's) 17,386 17,231 16,705
- --------------------------------------------------------------------------------------------------------------
EQ/ALLIANCE GLOBAL
- --------------------------------------------------------------------------------------------------------------
Unit value $ 151.87 $ 182.50 $ 249.93
- --------------------------------------------------------------------------------------------------------------
Number of units outstanding (000's) 3,369 3,395 3,509
- --------------------------------------------------------------------------------------------------------------
EQ/ALLIANCE GROWTH AND INCOME
- --------------------------------------------------------------------------------------------------------------
Unit value $ 179.30 $ 213.81 $ 250.31
- --------------------------------------------------------------------------------------------------------------
Number of units outstanding (000's) 1,800 2,475 3,095
- --------------------------------------------------------------------------------------------------------------
EQ/ALLIANCE GROWTH INVESTORS
Unit value $ 153.69 $ 180.63 $ 225.59
- --------------------------------------------------------------------------------------------------------------
Number of units outstanding (000's) 3,704 3,962 4,231
- --------------------------------------------------------------------------------------------------------------
EQ/ALLIANCE INTEMEDIATE GOVERNMENT SECURITIES
- --------------------------------------------------------------------------------------------------------------
Unit value $ 118.98 $ 126.48 $ 124.96
- --------------------------------------------------------------------------------------------------------------
Number of units outstanding (000's) 202 314 360
- --------------------------------------------------------------------------------------------------------------
EQ/ALLIANCE INTERNATIONAL
- --------------------------------------------------------------------------------------------------------------
Unit value $ 107.92 $ 117.72 $ 160.04
- --------------------------------------------------------------------------------------------------------------
Number of units outstanding (000's) 968 971 926
- --------------------------------------------------------------------------------------------------------------
EQ/ALLIANCE MONEY MARKET
- --------------------------------------------------------------------------------------------------------------
Unit value $ 29.41 $ 30.55 $ 31.63
- --------------------------------------------------------------------------------------------------------------
Number of units outstanding (000's) 973 1,261 1,516
- --------------------------------------------------------------------------------------------------------------
EQ/ALLIANCE PREMIER GROWTH
- --------------------------------------------------------------------------------------------------------------
Unit value -- -- $ 116.36
- --------------------------------------------------------------------------------------------------------------
Number of units outstanding (000's) -- -- 887
- --------------------------------------------------------------------------------------------------------------
EQ/ALLIANCE QUALITY BOND
- --------------------------------------------------------------------------------------------------------------
Unit value $ 121.30 $ 130.07 $ 125.76
- --------------------------------------------------------------------------------------------------------------
Number of units outstanding (000's) 283 557 622
- --------------------------------------------------------------------------------------------------------------
EQ/ALLIANCE SMALL CAP GROWTH
- --------------------------------------------------------------------------------------------------------------
Unit value $ 125.55 $ 118.57 $ 149.64
- --------------------------------------------------------------------------------------------------------------
Number of units outstanding (000's) 488 1,101 976
- --------------------------------------------------------------------------------------------------------------
EQ/ALLIANCE TECHNOLOGY
- --------------------------------------------------------------------------------------------------------------
Unit value -- -- --
- --------------------------------------------------------------------------------------------------------------
Number of units outstanding (000's) -- -- --
- --------------------------------------------------------------------------------------------------------------
EQ/AXP NEW DIMENSIONS
- --------------------------------------------------------------------------------------------------------------
Unit value -- -- --
- --------------------------------------------------------------------------------------------------------------
Number of units outstanding (000's) -- -- --
- --------------------------------------------------------------------------------------------------------------
EQ/AXP STRATEGY AGGRESSIVE
- --------------------------------------------------------------------------------------------------------------
Unit value -- -- --
- --------------------------------------------------------------------------------------------------------------
Number of units outstanding (000's) -- -- --
- --------------------------------------------------------------------------------------------------------------
EQ/BALANCED
- --------------------------------------------------------------------------------------------------------------
Unit value $ 38.66 $ 45.07 $ 52.39
- --------------------------------------------------------------------------------------------------------------
Number of units outstanding (000's) 26,036 24,361 22,434
- --------------------------------------------------------------------------------------------------------------
EQ/BERNSTEIN DIVERSIFIED VALUE
- --------------------------------------------------------------------------------------------------------------
Unit value -- -- --
- --------------------------------------------------------------------------------------------------------------
Number of units outstanding (000's) -- -- --
- --------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------
FOR THE YEARS ENDING
DECEMBER 31,
- --------------------------------------------------------------------------------------------------------------
2000 2001
- --------------------------------------------------------------------------------------------------------------
EQ/AGGRESSIVE STOCK
- --------------------------------------------------------------------------------------------------------------
Unit value $ 90.70 $ 67.13
- --------------------------------------------------------------------------------------------------------------
Number of units outstanding (000's) 18,138 16,058
- --------------------------------------------------------------------------------------------------------------
EQ/ALLIANCE COMMON STOCK
- --------------------------------------------------------------------------------------------------------------
Unit value $ 339.28 $ 299.82
- --------------------------------------------------------------------------------------------------------------
Number of units outstanding (000's) 15,685 14,197
- --------------------------------------------------------------------------------------------------------------
EQ/ALLIANCE GLOBAL
- --------------------------------------------------------------------------------------------------------------
Unit value $ 200.17 $ 157.88
- --------------------------------------------------------------------------------------------------------------
Number of units outstanding (000's) 3,712 3,331
- --------------------------------------------------------------------------------------------------------------
EQ/ALLIANCE GROWTH AND INCOME
- --------------------------------------------------------------------------------------------------------------
Unit value $ 269.09 $ 262.05
- --------------------------------------------------------------------------------------------------------------
Number of units outstanding (000's) 3,352 3,789
- --------------------------------------------------------------------------------------------------------------
EQ/ALLIANCE GROWTH INVESTORS
- --------------------------------------------------------------------------------------------------------------
Unit value $ 207.65 $ 179.41
- --------------------------------------------------------------------------------------------------------------
Number of units outstanding (000's) 4,354 3,967
- --------------------------------------------------------------------------------------------------------------
EQ/ALLIANCE INTEMEDIATE GOVERNMENT SECURITIES
- --------------------------------------------------------------------------------------------------------------
Unit value $ 134.60 $ 143.62
- --------------------------------------------------------------------------------------------------------------
Number of units outstanding (000's) 309 587
- --------------------------------------------------------------------------------------------------------------
EQ/ALLIANCE INTERNATIONAL
- --------------------------------------------------------------------------------------------------------------
Unit value $ 121.54 $ 92.48
- --------------------------------------------------------------------------------------------------------------
Number of units outstanding (000's) 1,028 945
- --------------------------------------------------------------------------------------------------------------
EQ/ALLIANCE MONEY MARKET
- --------------------------------------------------------------------------------------------------------------
Unit value $ 33.15 $ 33.96
- --------------------------------------------------------------------------------------------------------------
Number of units outstanding (000's) 1,458 1,796
- --------------------------------------------------------------------------------------------------------------
EQ/ALLIANCE PREMIER GROWTH
- --------------------------------------------------------------------------------------------------------------
Unit value $ 93.70 $ 70.28
- --------------------------------------------------------------------------------------------------------------
Number of units outstanding (000's) 2,596 2,788
- --------------------------------------------------------------------------------------------------------------
EQ/ALLIANCE QUALITY BOND
- --------------------------------------------------------------------------------------------------------------
Unit value $ 138.33 $ 147.79
- --------------------------------------------------------------------------------------------------------------
Number of units outstanding (000's) 566 899
- --------------------------------------------------------------------------------------------------------------
EQ/ALLIANCE SMALL CAP GROWTH
- --------------------------------------------------------------------------------------------------------------
Unit value $ 168.29 $ 144.40
- --------------------------------------------------------------------------------------------------------------
Number of units outstanding (000's) 1,895 1,988
- --------------------------------------------------------------------------------------------------------------
EQ/ALLIANCE TECHNOLOGY
- --------------------------------------------------------------------------------------------------------------
Unit value $ 66.10 $ 49.27
- --------------------------------------------------------------------------------------------------------------
Number of units outstanding (000's) 1,313 1,757
- --------------------------------------------------------------------------------------------------------------
EQ/AXP NEW DIMENSIONS
- --------------------------------------------------------------------------------------------------------------
Unit value $ 82.87 $ 69.07
- --------------------------------------------------------------------------------------------------------------
Number of units outstanding (000's) 41 105
- --------------------------------------------------------------------------------------------------------------
EQ/AXP STRATEGY AGGRESSIVE
- --------------------------------------------------------------------------------------------------------------
Unit value $ 62.12 $ 40.77
- --------------------------------------------------------------------------------------------------------------
Number of units outstanding (000's) 54 113
- --------------------------------------------------------------------------------------------------------------
EQ/BALANCED
- --------------------------------------------------------------------------------------------------------------
Unit value $ 51.10 $ 49.61
- --------------------------------------------------------------------------------------------------------------
Number of units outstanding (000's) 20,413 19,822
- --------------------------------------------------------------------------------------------------------------
EQ/BERNSTEIN DIVERSIFIED VALUE
- --------------------------------------------------------------------------------------------------------------
Unit value -- $ 94.39
- --------------------------------------------------------------------------------------------------------------
Number of units outstanding (000's) -- 1,544
- --------------------------------------------------------------------------------------------------------------
Appendix I: Condensed financial information A-3
SERIES 100 CONTRACTS (CONTINUED)
UNIT VALUES AND NUMBER OF UNITS OUTSTANDING FOR EACH VARIABLE
INVESTMENT OPTION, EXCEPT FOR THOSE OPTIONS OFFERED
FOR THE FIRST TIME ON OR AFTER DECEMBER 31, 2001.
- --------------------------------------------------------------------------------------------------------------
FOR THE YEARS
ENDING DECEMBER 31,
- --------------------------------------------------------------------------------------------------------------
1992 1993 1994
- --------------------------------------------------------------------------------------------------------------
EQ/CALVERT SOCIALLY RESPONSIBLE
- --------------------------------------------------------------------------------------------------------------
Unit value -- -- --
- --------------------------------------------------------------------------------------------------------------
Number of units outstanding (000s) -- -- --
- --------------------------------------------------------------------------------------------------------------
EQ/CAPITAL GUARDIAN RESEARCH
- --------------------------------------------------------------------------------------------------------------
Unit value -- -- --
- --------------------------------------------------------------------------------------------------------------
Number of units outstanding (000s) -- -- --
- --------------------------------------------------------------------------------------------------------------
EQ/CAPITAL GUARDIAN U.S. EQUITY
- --------------------------------------------------------------------------------------------------------------
Unit value -- -- --
- --------------------------------------------------------------------------------------------------------------
Number of units outstanding (000's) -- -- --
- --------------------------------------------------------------------------------------------------------------
EQ/EMERGING MARKETS EQUITY
- --------------------------------------------------------------------------------------------------------------
Unit value -- -- --
- --------------------------------------------------------------------------------------------------------------
Number of units outstanding (000's) -- -- --
- --------------------------------------------------------------------------------------------------------------
EQ/EQUITY 500 INDEX
- --------------------------------------------------------------------------------------------------------------
Unit value -- -- $ 100.95
- --------------------------------------------------------------------------------------------------------------
Number of units outstanding (000's) -- -- 47
- --------------------------------------------------------------------------------------------------------------
EQ/EVERGREEN OMEGA
- --------------------------------------------------------------------------------------------------------------
Unit value -- -- --
- --------------------------------------------------------------------------------------------------------------
Number of units outstanding (000's) -- -- --
- --------------------------------------------------------------------------------------------------------------
EQ/FI MID CAP
- --------------------------------------------------------------------------------------------------------------
Unit value -- -- --
- --------------------------------------------------------------------------------------------------------------
Number of units outstanding (000's) -- -- --
- --------------------------------------------------------------------------------------------------------------
EQ/FI SMALL/MID CAP VALUE
- --------------------------------------------------------------------------------------------------------------
Unit value -- -- --
- --------------------------------------------------------------------------------------------------------------
Number of units outstanding (000's) -- -- --
- --------------------------------------------------------------------------------------------------------------
EQ/HIGH YIELD
- --------------------------------------------------------------------------------------------------------------
Unit value -- -- $ 95.88
- --------------------------------------------------------------------------------------------------------------
Number of units outstanding (000's) -- -- 99
- --------------------------------------------------------------------------------------------------------------
EQ/JANUS LARGE CAP GROWTH
- --------------------------------------------------------------------------------------------------------------
Unit value -- -- --
- --------------------------------------------------------------------------------------------------------------
Number of units outstanding (000's) -- -- --
- --------------------------------------------------------------------------------------------------------------
EQ/MARSICO FOCUS
- --------------------------------------------------------------------------------------------------------------
Unit value -- -- --
- --------------------------------------------------------------------------------------------------------------
Number of units outstanding (000s) -- -- --
- --------------------------------------------------------------------------------------------------------------
EQ/MERCURY BASIC VALUE EQUITY
- --------------------------------------------------------------------------------------------------------------
Unit value -- -- --
- --------------------------------------------------------------------------------------------------------------
Number of units outstanding (000's) -- -- --
- --------------------------------------------------------------------------------------------------------------
EQ/MFS EMERGING GROWTH COMPANIES
- --------------------------------------------------------------------------------------------------------------
Unit value -- -- --
- --------------------------------------------------------------------------------------------------------------
Number of units outstanding (000's) -- -- --
- --------------------------------------------------------------------------------------------------------------
EQ/MFS INVESTORS TRUST
- --------------------------------------------------------------------------------------------------------------
Unit value -- -- --
- --------------------------------------------------------------------------------------------------------------
Number of units outstanding (000's) -- -- --
- --------------------------------------------------------------------------------------------------------------
EQ/MFS RESEARCH
- --------------------------------------------------------------------------------------------------------------
Unit value -- -- --
- --------------------------------------------------------------------------------------------------------------
Number of units outstanding (000's) -- -- --
- --------------------------------------------------------------------------------------------------------------
EQ/PUTNAM GROWTH & INCOME VALUE
- --------------------------------------------------------------------------------------------------------------
Unit value -- -- --
- --------------------------------------------------------------------------------------------------------------
Number of units outstanding (000's) -- -- --
- --------------------------------------------------------------------------------------------------------------
EQ/T. ROWE PRICE INTERNATIONAL STOCK
- --------------------------------------------------------------------------------------------------------------
Unit value -- -- --
- --------------------------------------------------------------------------------------------------------------
Number of units outstanding (000's) -- -- --
- --------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------
FOR THE YEARS ENDING DECEMBER 31,
- --------------------------------------------------------------------------------------------------------------
1995 1996 1997
- --------------------------------------------------------------------------------------------------------------
EQ/CALVERT SOCIALLY RESPONSIBLE
- --------------------------------------------------------------------------------------------------------------
Unit value -- -- --
- --------------------------------------------------------------------------------------------------------------
Number of units outstanding (000s) -- -- --
- --------------------------------------------------------------------------------------------------------------
EQ/CAPITAL GUARDIAN RESEARCH
- --------------------------------------------------------------------------------------------------------------
Unit value -- -- --
- --------------------------------------------------------------------------------------------------------------
Number of units outstanding (000s) -- -- --
- --------------------------------------------------------------------------------------------------------------
EQ/CAPITAL GUARDIAN U.S. EQUITY
- --------------------------------------------------------------------------------------------------------------
Unit value -- -- --
- --------------------------------------------------------------------------------------------------------------
Number of units outstanding (000's) -- -- --
- --------------------------------------------------------------------------------------------------------------
EQ/EMERGING MARKETS EQUITY
- --------------------------------------------------------------------------------------------------------------
Unit value -- -- $ 79.41
- --------------------------------------------------------------------------------------------------------------
Number of units outstanding (000's) -- -- 109
- --------------------------------------------------------------------------------------------------------------
EQ/EQUITY 500 INDEX
- --------------------------------------------------------------------------------------------------------------
Unit value $ 135.94 $ 164.12 $ 214.66
- --------------------------------------------------------------------------------------------------------------
Number of units outstanding (000's) 592 1,486 2,686
- --------------------------------------------------------------------------------------------------------------
EQ/EVERGREEN OMEGA
- --------------------------------------------------------------------------------------------------------------
Unit value -- -- --
- --------------------------------------------------------------------------------------------------------------
Number of units outstanding (000's) -- -- --
- --------------------------------------------------------------------------------------------------------------
EQ/FI MID CAP
- --------------------------------------------------------------------------------------------------------------
Unit value -- -- --
- --------------------------------------------------------------------------------------------------------------
Number of units outstanding (000's) -- -- --
- --------------------------------------------------------------------------------------------------------------
EQ/FI SMALL/MID CAP VALUE
- --------------------------------------------------------------------------------------------------------------
Unit value -- -- $ 118.06
- --------------------------------------------------------------------------------------------------------------
Number of units outstanding (000's) -- -- 577
- --------------------------------------------------------------------------------------------------------------
EQ/HIGH YIELD
- --------------------------------------------------------------------------------------------------------------
Unit value $ 113.44 $ 137.53 $ 160.74
- --------------------------------------------------------------------------------------------------------------
Number of units outstanding (000's) 209 444 831
- --------------------------------------------------------------------------------------------------------------
EQ/JANUS LARGE CAP GROWTH
- --------------------------------------------------------------------------------------------------------------
Unit value -- -- --
- --------------------------------------------------------------------------------------------------------------
Number of units outstanding (000's) -- -- --
- --------------------------------------------------------------------------------------------------------------
EQ/MARSICO FOCUS
- --------------------------------------------------------------------------------------------------------------
Unit value -- -- --
- --------------------------------------------------------------------------------------------------------------
Number of units outstanding (000s) -- -- --
- --------------------------------------------------------------------------------------------------------------
EQ/MERCURY BASIC VALUE EQUITY
- --------------------------------------------------------------------------------------------------------------
Unit value -- -- $ 115.97
- --------------------------------------------------------------------------------------------------------------
Number of units outstanding (000's) -- -- 145
- --------------------------------------------------------------------------------------------------------------
EQ/MFS EMERGING GROWTH COMPANIES
- --------------------------------------------------------------------------------------------------------------
Unit value -- -- $ 121.34
- --------------------------------------------------------------------------------------------------------------
Number of units outstanding (000's) -- -- 256
- --------------------------------------------------------------------------------------------------------------
EQ/MFS INVESTORS TRUST
- --------------------------------------------------------------------------------------------------------------
Unit value -- -- --
- --------------------------------------------------------------------------------------------------------------
Number of units outstanding (000's) -- -- --
- --------------------------------------------------------------------------------------------------------------
EQ/MFS RESEARCH
- --------------------------------------------------------------------------------------------------------------
Unit value -- -- $ 115.01
- --------------------------------------------------------------------------------------------------------------
Number of units outstanding (000's) -- -- 236
- --------------------------------------------------------------------------------------------------------------
EQ/PUTNAM GROWTH & INCOME VALUE
- --------------------------------------------------------------------------------------------------------------
Unit value -- -- $ 115.17
- --------------------------------------------------------------------------------------------------------------
Number of units outstanding (000's) -- -- 250
- --------------------------------------------------------------------------------------------------------------
EQ/T. ROWE PRICE INTERNATIONAL STOCK
- --------------------------------------------------------------------------------------------------------------
Unit value -- -- $ 97.61
- --------------------------------------------------------------------------------------------------------------
Number of units outstanding (000's) -- -- 387
- --------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------
FOR THE YEARS ENDING DECEMBER 31,
- --------------------------------------------------------------------------------------------------------------
1998 1999 2000
- --------------------------------------------------------------------------------------------------------------
EQ/CALVERT SOCIALLY RESPONSIBLE
- --------------------------------------------------------------------------------------------------------------
Unit value -- $ 107.58 $ 103.06
- --------------------------------------------------------------------------------------------------------------
Number of units outstanding (000s) -- 4 15
- --------------------------------------------------------------------------------------------------------------
EQ/CAPITAL GUARDIAN RESEARCH
- --------------------------------------------------------------------------------------------------------------
Unit value -- $ 106.78 $ 111,59
- --------------------------------------------------------------------------------------------------------------
Number of units outstanding (000s) -- 8 44
- --------------------------------------------------------------------------------------------------------------
EQ/CAPITAL GUARDIAN U.S. EQUITY
- --------------------------------------------------------------------------------------------------------------
Unit value -- $ 101.64 $ 103.88
- --------------------------------------------------------------------------------------------------------------
Number of units outstanding (000's) -- 13 34
- --------------------------------------------------------------------------------------------------------------
EQ/EMERGING MARKETS EQUITY
- --------------------------------------------------------------------------------------------------------------
Unit value $ 57.18 $ 110.43 $ 65.32
- --------------------------------------------------------------------------------------------------------------
Number of units outstanding (000's) 217 590 926
- --------------------------------------------------------------------------------------------------------------
EQ/EQUITY 500 INDEX
- --------------------------------------------------------------------------------------------------------------
Unit value $ 271.24 $ 322.15 $ 287.40
- --------------------------------------------------------------------------------------------------------------
Number of units outstanding (000's) 3,805 4,579 4,346
- --------------------------------------------------------------------------------------------------------------
EQ/EVERGREEN OMEGA
- --------------------------------------------------------------------------------------------------------------
Unit value -- $ 106.57 $ 92.84
- --------------------------------------------------------------------------------------------------------------
Number of units outstanding (000's) -- 5 18
- --------------------------------------------------------------------------------------------------------------
EQ/FI MID CAP
- --------------------------------------------------------------------------------------------------------------
Unit value -- -- $ 99.98
- --------------------------------------------------------------------------------------------------------------
Number of units outstanding (000's) -- -- 86
- --------------------------------------------------------------------------------------------------------------
EQ/FI SMALL/MID CAP VALUE
- --------------------------------------------------------------------------------------------------------------
Unit value $ 104.82 $ 105.28 $ 109.21
- --------------------------------------------------------------------------------------------------------------
Number of units outstanding (000's) 859 721 628
- --------------------------------------------------------------------------------------------------------------
EQ/HIGH YIELD
- --------------------------------------------------------------------------------------------------------------
Unit value $ 150.42 $ 143.43 $ 129.28
- --------------------------------------------------------------------------------------------------------------
Number of units outstanding (000's) 1,164 998 800
- --------------------------------------------------------------------------------------------------------------
EQ/JANUS LARGE CAP GROWTH
- --------------------------------------------------------------------------------------------------------------
Unit value -- -- $ 83.95
- --------------------------------------------------------------------------------------------------------------
Number of units outstanding (000's) -- -- 165
- --------------------------------------------------------------------------------------------------------------
EQ/MARSICO FOCUS
- --------------------------------------------------------------------------------------------------------------
Unit value -- -- --
- --------------------------------------------------------------------------------------------------------------
Number of units outstanding (000s) -- -- --
- --------------------------------------------------------------------------------------------------------------
EQ/MERCURY BASIC VALUE EQUITY
- --------------------------------------------------------------------------------------------------------------
Unit value $ 127.97 $ 149.82 $ 165.27
- --------------------------------------------------------------------------------------------------------------
Number of units outstanding (000's) 444 617 634
- --------------------------------------------------------------------------------------------------------------
EQ/MFS EMERGING GROWTH COMPANIES
- --------------------------------------------------------------------------------------------------------------
Unit value $ 161.04 $ 275.93 $ 220.97
- --------------------------------------------------------------------------------------------------------------
Number of units outstanding (000's) 1,090 2,427 3,720
- --------------------------------------------------------------------------------------------------------------
EQ/MFS INVESTORS TRUST
- --------------------------------------------------------------------------------------------------------------
Unit value -- $ 104.48 $ 102.37
- --------------------------------------------------------------------------------------------------------------
Number of units outstanding (000's) -- 18 68
- --------------------------------------------------------------------------------------------------------------
EQ/MFS RESEARCH
- --------------------------------------------------------------------------------------------------------------
Unit value $ 140.83 $ 171.06 $ 159.89
- --------------------------------------------------------------------------------------------------------------
Number of units outstanding (000's) 720 959 1,258
- --------------------------------------------------------------------------------------------------------------
EQ/PUTNAM GROWTH & INCOME VALUE
- --------------------------------------------------------------------------------------------------------------
Unit value $ 128.20 $ 124.76 $ 131.45
- --------------------------------------------------------------------------------------------------------------
Number of units outstanding (000's) 581 648 521
- --------------------------------------------------------------------------------------------------------------
EQ/T. ROWE PRICE INTERNATIONAL STOCK
- --------------------------------------------------------------------------------------------------------------
Unit value $ 109.49 $ 142.46 $ 114.30
- --------------------------------------------------------------------------------------------------------------
Number of units outstanding (000's) 671 765 871
- --------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------
FOR THE YEARS
ENDING DECEMBER 31,
- --------------------------------------------------------------------------------------------------------------
2001
- --------------------------------------------------------------------------------------------------------------
EQ/CALVERT SOCIALLY RESPONSIBLE
- --------------------------------------------------------------------------------------------------------------
Unit value $ 86.73
- --------------------------------------------------------------------------------------------------------------
Number of units outstanding (000s) 33
- --------------------------------------------------------------------------------------------------------------
EQ/CAPITAL GUARDIAN RESEARCH
- --------------------------------------------------------------------------------------------------------------
Unit value $ 107.86
- --------------------------------------------------------------------------------------------------------------
Number of units outstanding (000s) 95
- --------------------------------------------------------------------------------------------------------------
EQ/CAPITAL GUARDIAN U.S. EQUITY
- --------------------------------------------------------------------------------------------------------------
Unit value $ 100.43
- --------------------------------------------------------------------------------------------------------------
Number of units outstanding (000's) 96
- --------------------------------------------------------------------------------------------------------------
EQ/EMERGING MARKETS EQUITY
- --------------------------------------------------------------------------------------------------------------
Unit value $ 61.12
- --------------------------------------------------------------------------------------------------------------
Number of units outstanding (000's) 850
- --------------------------------------------------------------------------------------------------------------
EQ/EQUITY 500 INDEX
- --------------------------------------------------------------------------------------------------------------
Unit value $ 249.66
- --------------------------------------------------------------------------------------------------------------
Number of units outstanding (000's) 4,083
- --------------------------------------------------------------------------------------------------------------
EQ/EVERGREEN OMEGA
- --------------------------------------------------------------------------------------------------------------
Unit value $ 76.01
- --------------------------------------------------------------------------------------------------------------
Number of units outstanding (000's) 33
- --------------------------------------------------------------------------------------------------------------
EQ/FI MID CAP
- --------------------------------------------------------------------------------------------------------------
Unit value $ 85.41
- --------------------------------------------------------------------------------------------------------------
Number of units outstanding (000's) 420
- --------------------------------------------------------------------------------------------------------------
EQ/FI SMALL/MID CAP VALUE
- --------------------------------------------------------------------------------------------------------------
Unit value $ 112.05
- --------------------------------------------------------------------------------------------------------------
Number of units outstanding (000's) 1,238
- --------------------------------------------------------------------------------------------------------------
EQ/HIGH YIELD
- --------------------------------------------------------------------------------------------------------------
Unit value $ 128.74
- --------------------------------------------------------------------------------------------------------------
Number of units outstanding (000's) 770
- --------------------------------------------------------------------------------------------------------------
EQ/JANUS LARGE CAP GROWTH
- --------------------------------------------------------------------------------------------------------------
Unit value $ 63.80
- --------------------------------------------------------------------------------------------------------------
Number of units outstanding (000's) 464
- --------------------------------------------------------------------------------------------------------------
EQ/MARSICO FOCUS
- --------------------------------------------------------------------------------------------------------------
Unit value $ 105.94
- --------------------------------------------------------------------------------------------------------------
Number of units outstanding (000s) --
- --------------------------------------------------------------------------------------------------------------
EQ/MERCURY BASIC VALUE EQUITY
- --------------------------------------------------------------------------------------------------------------
Unit value $ 172.07
- --------------------------------------------------------------------------------------------------------------
Number of units outstanding (000's) 1,044
- --------------------------------------------------------------------------------------------------------------
EQ/MFS EMERGING GROWTH COMPANIES
- --------------------------------------------------------------------------------------------------------------
Unit value $ 143.76
- --------------------------------------------------------------------------------------------------------------
Number of units outstanding (000's) 3,422
- --------------------------------------------------------------------------------------------------------------
EQ/MFS INVESTORS TRUST
- --------------------------------------------------------------------------------------------------------------
Unit value $ 84.85
- --------------------------------------------------------------------------------------------------------------
Number of units outstanding (000's) 87
- --------------------------------------------------------------------------------------------------------------
EQ/MFS RESEARCH
- --------------------------------------------------------------------------------------------------------------
Unit value $ 123.32
- --------------------------------------------------------------------------------------------------------------
Number of units outstanding (000's) 1,124
- --------------------------------------------------------------------------------------------------------------
EQ/PUTNAM GROWTH & INCOME VALUE
- --------------------------------------------------------------------------------------------------------------
Unit value $ 120.85
- --------------------------------------------------------------------------------------------------------------
Number of units outstanding (000's) 532
- --------------------------------------------------------------------------------------------------------------
EQ/T. ROWE PRICE INTERNATIONAL STOCK
- --------------------------------------------------------------------------------------------------------------
Unit value $ 88.15
- --------------------------------------------------------------------------------------------------------------
Number of units outstanding (000's) 896
- --------------------------------------------------------------------------------------------------------------
A-4 Appendix I: Condensed financial information
Appendix II: Market value adjustment example
- --------------------------------------------------------------------------------
The example below shows how the market value adjustment would be determined and
how it would be applied to a withdrawal, assuming that $100,000 had been
invested on June 14, 2003 to a fixed maturity option with a maturity date of
June 15, 2012 (i.e., nine* years later) at a rate to maturity of 7.00%,
resulting in a maturity value at the maturity date of $183,846. We further
assume that a withdrawal of $50,000 is made four years later, on June 15, 2007.
- ----------------------------------------------------------------------------------
HYPOTHETICAL ASSUMED
RATE TO MATURITY ON JUNE
15, 2007
------------------------
5.00% 9.00%
- ----------------------------------------------------------------------------------
AS OF JUNE 15, 2007 (BEFORE WITHDRAWAL)
- ----------------------------------------------------------------------------------
(1) Market adjusted amount $144,048 $ 119,487
- ----------------------------------------------------------------------------------
(2) Fixed maturity amount $131,080 $ 131,080
- ----------------------------------------------------------------------------------
(3) Market value adjustment:
(1) - (2) $ 12,968 $ (11,593)
- ----------------------------------------------------------------------------------
ON JUNE 15, 2007 (AFTER WITHDRAWAL)
- ----------------------------------------------------------------------------------
(4) Portion of market value adjustment associated with withdrawal:
(3) x [$50,000/(1)] $ 4,501 $ (4,851)
- ----------------------------------------------------------------------------------
(5) Reduction in fixed maturity amount [$50,000 - (4)] $ 45,499 $ 54,851
- ----------------------------------------------------------------------------------
(6) Fixed maturity amount (2) - (5) $ 85,581 $ 76,229
- ----------------------------------------------------------------------------------
(7) Maturity value $120,032 $ 106,915
- ----------------------------------------------------------------------------------
(8) Market adjusted amount of (7) $ 94,048 $ 69,487
- ----------------------------------------------------------------------------------
You should note that under this example if a withdrawal is made when rates have
increased from 7.00% to 9.00% (right column), a negative market value
adjustment is realized. On the other hand, if a withdrawal is made when rates
have decreased from 7.00% to 5.00% (left column), a positive market value
adjustment is realized.
*In Oregon, seven is the maximum maturity year.
Appendix II: Market value adjustment example B-1
(This page intentionally left blank)
Statement of additional information
- --------------------------------------------------------------------------------
TABLE OF CONTENTS
Page
Unit Value 2
Calculation of Annuity Payments 2
The reorganization 3
Custodian and independent accountants 3
EQ/Alliance Money Market option yield information 3
Other yield information 4
Distribution of the Contracts 5
Financial statements 5
How to Obtain an EQUI-VEST(R) Statement of Additional Information for Separate
Account A
Call 1-800-628-6673 or send this request form to:
EQUI-VEST(R)
Processing Office
The Equitable Life
P.O. Box 2996
New York, NY 10116-2996
- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
Please send me an EQUI-VEST(R) Statement of Additional Information dated May 1,
2002.
(Combination variable and fixed deferred annuity)
- --------------------------------------------------------------------------------
Name:
- --------------------------------------------------------------------------------
Address:
- --------------------------------------------------------------------------------
City State Zip
888-1297 (5/02)
EQUI-VEST(R) Express(SM)
A combination variable and fixed deferred annuity contract
PROSPECTUS DATED MAY 1, 2002
Please read and keep this prospectus for future reference. It contains
important information that you should know before purchasing or taking any
other action under your contract. Also, at the end of this prospectus you will
find attached the prospectuses for each Trust which contain important
information about their portfolios.
- --------------------------------------------------------------------------------
WHAT IS EQUI-VEST(R) EXPRESS(SM)?
EQUI-VEST(R) Express(SM) is a deferred annuity contract issued by THE EQUITABLE
LIFE ASSURANCE SOCIETY OF THE UNITED STATES. It provides for the accumulation
of retirement savings and for income. The contract also offers death benefit
protection and a number of payout options. You invest to accumulate value on a
tax-deferred basis in one or more of our variable investment options or in our
fixed maturity options ("investment options"). This contract may not currently
be available in all states.
- --------------------------------------------------------------------------------
VARIABLE INVESTMENT OPTIONS
- --------------------------------------------------------------------------------
FIXED INCOME:
- --------------------------------------------------------------------------------
o AXA Premier VIP Core Bond* o EQ/Alliance Quality Bond
o EQ/Alliance Intermediate Government o EQ/High Yield1
Securities o EQ/J.P. Morgan Core Bond
o EQ/Alliance Money Market
- --------------------------------------------------------------------------------
DOMESTIC STOCKS
- --------------------------------------------------------------------------------
o AXA Premier VIP Health Care* o EQ/Calvert Socially Responsible
o AXA Premier VIP Large Cap Core o EQ/Capital Guardian Research
Equity* o EQ/Capital Guardian U.S. Equity
o AXA Premier VIP Large Cap Growth* o EQ/Equity 500 Index
o AXA Premier VIP Large Cap Value* o EQ/Evergreen Omega
o AXA Premier VIP Small/Mid Cap o EQ/FI Mid Cap
Growth* o EQ/FI Small/Mid Cap Value
o AXA Premier VIP Small/Mid Cap Value* o EQ/Janus Large Cap Growth
o AXA Premier VIP Technology* o EQ/Lazard Small Cap Value
o EQ/Aggressive Stock o EQ/Marsico Focus*
o EQ/Alliance Common Stock o EQ/Mercury Basic Value Equity
o EQ/Alliance Growth and Income o EQ/MFS Emerging Growth Companies
o EQ/Alliance Premier Growth o EQ/MFS Investors Trust
o EQ/Alliance Small Cap Growth o EQ/MFS Research
o EQ/Alliance Technology o EQ/Putnam Growth & Income Value
o EQ/AXP New Dimensions** o EQ/Putnam Voyager(2)
o EQ/AXP Strategy Aggressive** o EQ/Small Company Index
o EQ/Bernstein Diversified Value
- --------------------------------------------------------------------------------
INTERNATIONAL STOCKS
- --------------------------------------------------------------------------------
o AXA Premier VIP International Equity* o EQ/Emerging Markets Equity
o EQ/Alliance Global o EQ/International Equity Index
o EQ/Alliance International o EQ/Putnam International Equity
o EQ/Capital Guardian International
- --------------------------------------------------------------------------------
BALANCED/HYBRID
- --------------------------------------------------------------------------------
o EQ/Alliance Growth Investors o EQ/Balanced
- --------------------------------------------------------------------------------
(1) Formerly named "EQ/Alliance High Yield."
(2) Formerly named "EQ/Putnam Investors Growth."
* Subject to state availability.
** Subject to shareholder approval, we anticipate that the EQ/AXP New
Dimensions and the EQ/AXP Strategy Aggressive investment options (the
"replaced options") will be merged into the EQ/Capital Guardian U.S. Equity
and the EQ/Alliance Small Gap Growth investment options (the "surviving
options"), respectively, on or about July 12,2002. After the merger, the
replaced options will no longer be available and any allocation elections to
either of them will be considered as allocation elections to the applicable
surviving option. We will notify you if the replacements do not take place.
You may allocate amounts to any of the variable investment options. Each
variable investment option is a subaccount of Separate Account A. Each variable
investment option, in turn, invests in a corresponding securities portfolio of
EQ Advisors Trust or AXA Premier VIP Trust (the "Trusts"). Your investment
results in a variable investment option will depend on the investment
performance of the related portfolio.
FIXED MATURITY OPTIONS. You may allocate amounts to one or more fixed maturity
options. These amounts will receive a fixed rate of interest for a specified
period. Interest is earned at a guaranteed rate set by us. We make a market
value adjustment (up or down) if you make transfers or withdrawals from a fixed
maturity option before its maturity date.
TYPES OF CONTRACTS. We offer the contracts for use as:
o A nonqualified annuity ("NQ") for after-tax contributions only
o An individual retirement annuity ("IRA"), either Traditional IRA or Roth IRA
A contribution of at least $50 is required to purchase a contract.
Registration statements relating to this offering have been filed with the
Securities and Exchange Commission ("SEC"). The statement of additional
information ("SAI") dated May 1, 2002, is a part of one of the registration
statements. The SAI is available free of charge. You may request one by writing
to our processing office or calling 1 (800) 628-6673. The SAI has been
incorporated by reference into this prospectus. This prospectus and the SAI can
also be obtained from the SEC's Web site at http://www.sec.gov. The table of
contents for the SAI appears at the back of this prospectus.
THE SEC HAS NOT APPROVED OR DISAPPROVED THESE SECURITIES OR DETERMINED IF THIS
PROSPECTUS IS ACCURATE OR COMPLETE. ANY REPRESENTATION TO THE CONTRARY IS A
CRIMINAL OFFENSE. THE CONTRACTS ARE NOT INSURED BY THE FDIC OR ANY OTHER
AGENCY. THEY ARE NOT DEPOSITS OR OTHER OBLIGATIONS OF ANY BANK AND ARE NOT BANK
GUARANTEED. THEY ARE SUBJECT TO INVESTMENT RISKS AND POSSIBLE LOSS OF
PRINCIPAL.
X00300
Series 700
Contents of this prospectus
- --------------------------------------------------------------------
- ----------------------
"We," "our" and "us" refer to Equitable Life.
When we address the reader of this prospectus with words such as "you" and
"your," we mean the person who has the right or responsibility that the
prospectus is discussing at that point. This is usually the contract owner.
When we use the word "contract" it also includes certificates that are issued
under group contracts in some states.
EQUI-VEST(R) EXPRESS(SM)
Index of key words and phrases 4
Who is Equitable Life? 5
How to reach us 6
Equi-Vest(R) Express(SM) at a glance -- key features 8
- --------------------------------------------------------------------------------
FEE TABLE 11
- --------------------------------------------------------------------------------
Examples 14
Condensed financial information 15
- --------------------------------------------------------------------------------
1. CONTRACT FEATURES AND BENEFITS 16
- --------------------------------------------------------------------------------
How you can purchase and contribute to your contract 16
Owner and annuitant requirements 18
How you can make your contributions 18
What are your investment options under the contract? 18
Allocating your contributions 22
Your right to cancel within a certain number of days 23
- --------------------------------------------------------------------------------
2. DETERMINING YOUR CONTRACT'S VALUE 24
- --------------------------------------------------------------------------------
Your account value and cash value 24
Your contract's value in the variable investment options 24
Your contract's value in the fixed maturity options 24
- --------------------------------------------------------------------------------
3. TRANSFERRING YOUR MONEY AMONG INVESTMENT OPTIONS 25
- --------------------------------------------------------------------------------
Transferring your account value 25
Disruptive transfer activity 25
Automatic transfer options 25
Rebalancing your account value 25
- --------------------------------------------------------------------------------
4. ACCESSING YOUR MONEY 27
- --------------------------------------------------------------------------------
Withdrawing your account value 27
How withdrawals are taken from your account value 27
Surrender of your contract to receive its cash value 28
Termination 28
When to expect payments 28
Your annuity payout options 28
2 Contents of this prospectus
- --------------------------------------------------------------------------------
5. CHARGES AND EXPENSES 30
- --------------------------------------------------------------------------------
Charges that Equitable Life deducts 30
Charges under the contracts 30
Charges that the Trusts deduct 31
Group or sponsored arrangements 31
Other distribution arrangements 32
- --------------------------------------------------------------------------------
6. PAYMENT OF DEATH BENEFIT 33
- --------------------------------------------------------------------------------
Your beneficiary and payment of benefit 33
How death benefit payment is made 33
Beneficiary continuation option 34
- --------------------------------------------------------------------------------
7. TAX INFORMATION 35
- --------------------------------------------------------------------------------
Overview 35
Buying a contract to fund a retirement arrangement 35
Transfers among investment options 35
Taxation of nonqualified annuities 35
Individual retirement arrangements ("IRAs") 36
Roth individual retirement annuities ("Roth IRAs") 42
Federal and state income tax withholding and
information reporting 45
Impact of taxes to Equitable Life 46
- --------------------------------------------------------------------------------
8. MORE INFORMATION 47
- --------------------------------------------------------------------------------
About Separate Account A 47
About the Trusts 47
About our fixed maturity options 47
About the general account 48
About other methods of payment 49
Dates and prices at which contract events occur 49
About your voting rights 49
About legal proceedings 50
About our independent accountants 50
Financial statements 50
Transfers of ownership, collateral assignments, loans,
and borrowing 50
Distribution of the contracts 50
- --------------------------------------------------------------------------------
9. INVESTMENT PERFORMANCE 51
- --------------------------------------------------------------------------------
Communicating performance data 54
- --------------------------------------------------------------------------------
10. INCORPORATION OF CERTAIN DOCUMENTS BY REFERENCE 55
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
APPENDICES
- --------------------------------------------------------------------------------
I -- Condensed financial information A-1
II -- Market value adjustment example B-1
- --------------------------------------------------------------------------------
STATEMENT OF ADDITIONAL INFORMATION
TABLE OF CONTENTS
- --------------------------------------------------------------------------------
Contents of this prospectus 3
Index of key words and phrases
- --------------------------------------------------------------------------------
This index should help you locate more information on the terms used in this
prospectus.
PAGE
account value 24
annuitant 16
annuity payout options 28
beneficiary 34
business day 49
cash value 24
conduit IRA 40
contract date 9
contract date anniversary 9
contract year 9
contributions 18
contributions to Roth IRAs
regular and direct transfers 42
rollover contributions 43
conversion contributions 44
contributions to Traditional IRAs
regular contributions 37
rollovers and direct transfers 38
disruptive transfer activity 25
EQAccess 6
financial professional 50
fixed maturity options 22
IRA cover
PAGE
IRS 35
investment options 18
market adjusted amount 22
market timing 25
market value adjustment 22
maturity value 22
NQ cover
portfolio cover
processing office 6
rate to maturity 22
regular contribution 37
Required Beginning Date 40
Roth IRA cover
SAI cover
SEC cover
TOPS 6
Traditional IRA cover
TSA cover
Trusts cover
unit 25
unit investment trust 48
variable investment options 18
To make this prospectus easier to read, we sometimes use different words than
in the contract or supplemental materials. This is illustrated below. Although
we do use different words, they have the same meaning in this prospectus as in
the contract or supplemental materials. Your financial professional can provide
further explanation about your contract.
- --------------------------------------------------------------------------------
PROSPECTUS CONTRACT OR SUPPLEMENTAL MATERIALS
- --------------------------------------------------------------------------------
fixed maturity options Guarantee Periods or Fixed Maturity Accounts
variable investment options Investment Funds or Investment Divisions
account value Annuity Account Value
rate to maturity Guaranteed Rates
unit Accumulation unit
unit value Accumulation unit value
- --------------------------------------------------------------------------------
4 Index of key words and phrases
Who is Equitable Life?
- --------------------------------------------------------------------------------
We are The Equitable Life Assurance Society of the United States ("Equitable
Life"), a New York stock life insurance corporation. We have been doing
business since 1859. Equitable Life is a wholly owned subsidiary of AXA
Financial, Inc. (previously, The Equitable Companies Incorporated). AXA, a
French holding company for an international group of insurance and related
financial services companies, is the sole shareholder of AXA Financial, Inc. As
the sole shareholder, and under its other arrangements with Equitable Life and
Equitable Life's parent, AXA exercises significant influence over the
operations and capital structure of Equitable Life and its parent. No company
other than Equitable Life, however, has any legal responsibility to pay amounts
that Equitable Life owes under the contracts.
AXA Financial, Inc. and its consolidated subsidiaries managed approximately
$481.0 billion in assets as of December 31, 2001. For over 100 years Equitable
Life has been among the largest insurance companies in the United States. We
are licensed to sell life insurance and annuities in all fifty states, the
District of Columbia, Puerto Rico, and the U.S. Virgin Islands. Our home office
is located at 1290 Avenue of the Americas, New York, N.Y. 10104.
Who is Equitable Life? 5
HOW TO REACH US
You may communicate with our processing office as listed below for the purposes
described. Certain methods of contacting us, such as by telephone or
electronically may be unavailable or delayed (for example our facsimile service
may not be available at all times and/or we may be unavailable due to emergency
closing). In addition, the level and type of service available may be
restricted based on criteria established by us.
- --------------------------------------------------------------------------------
FOR NQ AND IRA OWNERS WHO SEND CONTRIBUTIONS INDI-
VIDUALLY BY REGULAR MAIL:
- --------------------------------------------------------------------------------
Equitable Life
EQUI-VEST(R) Express(SM)
Individual Collections
P.O. Box 13459
Newark, NJ 07188-0459
- --------------------------------------------------------------------------------
FOR NQ AND IRA OWNERS WHO SEND CONTRIBUTIONS INDI-
VIDUALLY BY EXPRESS DELIVERY:
- --------------------------------------------------------------------------------
Equitable Life
c/o Bank One, N.A.
300 Harmon Meadow Boulevard, 3rd Floor
Secaucus, NJ 07094
Attn: Box 13459
- --------------------------------------------------------------------------------
FOR ALL OTHER COMMUNICATIONS (E.G., REQUESTS FOR TRANS-
FERS, WITHDRAWALS, OR REQUIRED NOTICES) SENT BY REGULAR
MAIL:
- --------------------------------------------------------------------------------
Equitable Life
EQUI-VEST(R) Express(SM)
P.O. Box 2996
New York, NY 10116-2996
- --------------------------------------------------------------------------------
FOR ALL OTHER COMMUNICATIONS (E.G., REQUESTS FOR TRANS-
FERS, WITHDRAWALS, OR REQUIRED NOTICES) SENT BY EXPRESS
DELIVERY:
- --------------------------------------------------------------------------------
Equitable Life
EQUI-VEST(R) Express(SM)
200 Plaza Drive, 2nd Floor
Secaucus, NJ 07094
- --------------------------------------------------------------------------------
FOR NQ AND IRA CONTRIBUTIONS REMITTED BY EMPLOYERS
AND SENT BY REGULAR MAIL:
- --------------------------------------------------------------------------------
Equitable Life
EQUI-VEST(R) Express(SM)
Unit Collections
P.O. Box 13463
Newark, New Jersey 07188-0463
- --------------------------------------------------------------------------------
FOR NQ AND IRA CONTRIBUTIONS REMITTED BY EMPLOYERS
AND SENT BY EXPRESS DELIVERY:
- --------------------------------------------------------------------------------
Equitable Life
c/o Bank One, N.A.
300 Harmon Meadow Boulevard, 3rd Floor
Secaucus, NJ 07094
Attn: Box 13463
- --------------------------------------------------------------------------------
REPORTS WE PROVIDE:
- --------------------------------------------------------------------------------
o written confirmation of financial transactions;
o quarterly statements of your contract values as of the close of each
calendar quarter; and
o annual statement of your contract values as of your contract date
anniversary.
- --------------------------------------------------------------------------------
TELEPHONE OPERATED PROGRAM SUPPORT ("TOPS") AND
EQACCESS SYSTEMS:
- --------------------------------------------------------------------------------
TOPS is designed to provide you with up-to-date information via touch-tone
telephone. EQAccess is designed to provide this information through the
Internet. You can obtain information on:
o your current account value;
o your current allocation percentages;
o the number of units you have in the variable investment options;
o rates to maturity for fixed maturity options;
o the daily unit values for the variable investment options; and
o performance information regarding the variable investment options (not
available through TOPS).
You can also:
o change your allocation percentages and/or transfer among the variable
investment options; and
o change your TOPS personal identification number ("PIN") (not available
through EQAccess).
o change your EQAccess password (not available through TOPS).
TOPS and EQAccess are normally available seven days a week, 24 hours a day. You
may use TOPS by calling toll free 1 (800) 755-7777. You may use EQAccess by
visiting our Web site at http:// www.equitable.com and clicking on EQAccess.
Of course, for reasons beyond our control, these services may sometimes be
unavailable.
We have established procedures to reasonably confirm that the instructions
communicated by telephone or the Internet are genuine. For example, we will
require certain personal identification information before we will act on
telephone or Internet instructions and we will provide written confirmation of
your transfers. If we do not employ reasonable procedures to confirm the
genuineness of telephone or Internet instructions, we may be liable for any
losses arising out of any act or omission that constitutes negligence, lack of
good faith, or wilful misconduct. In light of our procedures, we will not be
liable for following telephone or Internet instructions we reasonably believe
to be genuine.
6 Who is Equitable Life?
We reserve the right to limit access to these services if we determine that you
engaged in a disruptive transfer activity such as "market timing" (see
"Disruptive transfer activity" in "Transferring your money among investment
options" later in this Prospectus).
- --------------------------------------------------------------------------------
CUSTOMER SERVICE REPRESENTATIVE:
- --------------------------------------------------------------------------------
You may also use our toll-free number 1 (800) 628-6673 to speak with one of our
customer service representatives. Our customer service representatives are
available on each business day Monday through Thursday from 8:00 a.m. to 7:00
p.m., and on Fridays until 5:00 p.m., Eastern Time.
Hearing or speech-impaired clients may call the AT&T National Relay Number at
(800) 855-2880 for information about your account. If you have a
Telecommunications Device for the Deaf (TDD), you may relay messages or
questions to our Customer Service Department at (800) 628-6673, Monday through
Thursday from 8:00 a.m. to 7:00 p.m., and on Friday until 5:00 p.m. Eastern
Time. AT&T personnel will communicate our reply back to you, via the TDD.
- --------------------------------------------------------------------------------
TOLL-FREE TELEPHONE SERVICE:
- --------------------------------------------------------------------------------
You may reach us toll-free by calling 1 (800) 841-0801 for a recording of daily
unit values for the variable investment options.
WE REQUIRE THAT THE FOLLOWING TYPES OF COMMUNICATIONS BE ON SPECIFIC FORMS WE
PROVIDE FOR THAT PURPOSE:
(1) conversion of your traditional IRA contract to a Roth IRA contract;
(2) cancellation of your Roth IRA contract and return to a traditional IRA
contract;
(3) election of the automatic investment program;
(4) election of general dollar-cost averaging;
(5) election of the rebalancing program;
(6) election of the automatic nonqualified deposit service;
(7) election of required minimum distribution option;
(8) election of beneficiary continuation option;
(9) election of the principal assurance allocation; and
(10) request for a transfer/rollover of assets or 1035 exchange to another
carrier.
WE ALSO HAVE SPECIFIC FORMS THAT WE RECOMMEND YOU USE FOR THE FOLLOWING TYPES
OF REQUESTS:
(1) address changes;
(2) beneficiary changes;
(3) transfers among investment options;
(4) change of ownership; and
(5) contract surrender and withdrawal requests.
TO CHANGE OR CANCEL ANY OF THE FOLLOWING WE REQUIRE WRITTEN NOTIFICATION
GENERALLY AT LEAST SEVEN CALENDAR DAYS BEFORE THE NEXT SCHEDULED TRANSACTION:
(1) automatic investment program;
(2) general dollar-cost averaging;
(3) rebalancing program;
(4) systematic withdrawals; and
(5) the date annuity payments are to begin.
You must sign and date all these requests. Any written request that is not on
one of our forms must include your name and your contract number along with
adequate details about the notice you wish to give or the action you wish us to
take.
SIGNATURES:
The proper person to sign forms, notices and requests would normally be the
owner. If there are joint owners, all must sign.
Who is Equitable Life? 7
EQUI-VEST(R) Express(SM) at a glance -- key features
- ------------------------------------------------------------------------------------------------------------------------------------
Professional investment EQUI-VEST(R) Express(SM) variable investment options invest in different portfolios managed by
management professional investment advisers.
- ------------------------------------------------------------------------------------------------------------------------------------
Fixed maturity options o 10 fixed maturity options with maturities ranging from approximately 1 to 10 years.
o Each fixed maturity option offers a guarantee of principal and interest rate if you hold it to
maturity.
----------------------------------------------------------------------------------------------------------
If you make withdrawals or transfers from a fixed maturity option before maturity, there will be a market
value adjustment due to differences in interest rates. This may increase or decrease any value that you
have left in that fixed maturity option. If you surrender your contract, a market value adjustment may
also apply.
- ------------------------------------------------------------------------------------------------------------------------------------
Tax advantages o On earnings inside the No tax until you make withdrawals from your contract or receive annuity
contract payments.
o On transfers inside the No tax on transfers among investment options.
contract
----------------------------------------------------------------------------------------------------------
If you are purchasing an annuity contract as an Individual Retirement Annuity (IRA), you should be
aware that
such annuities do not provide tax deferral benefits beyond those already provided by the Internal
Revenue Code.
Before purchasing one of these annuities, you should consider whether its features and benefits
beyond tax
deferral meet your needs and goals. You may also want to consider the relative features, benefits and
costs of
these annuities with any other investment that you may use in connection with your retirement plan or
arrangement. (For more information, see "Tax information" later in the Prospectus.)
----------------------------------------------------------------------------------------------------------
Contribution amounts Minimum: $50 ($20 under our automatic investment program)
Maximum contribution limitations may apply.
- ------------------------------------------------------------------------------------------------------------------------------------
Access to your money o Lump sum withdrawals
o Several withdrawal options on a periodic basis
o Contract surrender
You may incur a withdrawal charge for certain withdrawals or if you surrender your contract. You may
also incur income tax and a penalty tax.
- ------------------------------------------------------------------------------------------------------------------------------------
Payout options o Fixed annuity payout options
o Variable annuity payout options
- ------------------------------------------------------------------------------------------------------------------------------------
Additional features o General dollar-cost averaging
o Automatic investment program
o Account value rebalancing (quarterly, semiannually and annually)
o Principal assurance allocation
o No charge on transfers among investment options
8 EQUI-VEST(R) Express(SM) at a glance -- key features
- ------------------------------------------------------------------------------------------------------------------------------------
Fees and charges o Daily charges on amounts invested in the variable investment options for mortality and expense risks
and other expenses at an annual rate of 0.95% (2.00% maximum).
o If your account value at the end of the contract year is less than $25,000 for NQ contracts (or less
than $20,000 for IRA contracts), we deduct an annual administrative charge equal to $30, or, during the
first two contract years, 2% of your account value, if less thereafter, $30 per year ($65 maximum). If
your account value is $25,000 or more for NQ contracts (or $20,000 or more for IRA contracts), we will not
deduct the charge. For individuals who own multiple contracts with combined account values of over
$100,000, this charge may be waived. See "Annual administrative charge" in "Charges and expenses" later in
this Prospectus.
o Charge for third-party transfer (such as in the case of a trustee-to-trustee transfer for an IRA contract)
or exchange (if your contract is exchanged for a contract issued by another insurance company): $25
currently ($65 maximum) per occurrence.
o No sales charge deducted at the time you make contributions.
o During the first seven contract years following each contribution, a charge will be deducted from
amounts that you withdraw that exceed 10% of your account value. We use the account value on the date of
the withdrawal to calculate the 10% amount available. The charge begins at 7% in the first contract year
following each contribution. It declines each year to 1% in the seventh contract year. There is no
withdrawal charge in the eighth and later contract years following a contribution.
-----------------------------------------------------------------------------------------------------------
The "contract date" is the effective date of a contract. This usually is the business day we receive the
properly completed and signed application, along with any other required documents, and your initial
contribution. Your contract date will be shown in your contract. The 12-month period beginning on your
contract date and each 12-month period after that date is a "contract year." The end of each 12-month
period is your "contract date anniversary."
-----------------------------------------------------------------------------------------------------------
o We deduct a charge designed to approximate certain taxes that may be imposed on us, such as premium
taxes in your state. The charge is generally deducted from the amount applied to an annuity payout option.
o We deduct a $350 annuity administrative fee from amounts applied to purchase a Variable Immediate
Annuity payout option.
o Annual expenses of the Trusts' portfolios are calculated as a percentage of the average daily net
assets invested in each portfolio. These expenses include management fees ranging from 0.25% to 1.20%
annually, 12b-1 fees of 0.25% annually and other expenses.
- ------------------------------------------------------------------------------------------------------------------------------------
Annuitant issue ages NQ 0-83
Traditional 0-83
Roth IRA 0-83
- ------------------------------------------------------------------------------------------------------------------------------------
THE ABOVE IS NOT A COMPLETE DESCRIPTION OF ALL MATERIAL PROVISIONS OF THE
CONTRACT. IN SOME CASES RESTRICTIONS OR EXCEPTIONS APPLY. MAXIMUM EXPENSE
LIMITATIONS APPLY TO CERTAIN VARIABLE INVESTMENT OPTIONS, AND RIGHTS ARE
RESERVED TO CHANGE OR WAIVE CERTAIN CHARGES WITHIN SPECIFIED LIMITS. ALSO, ALL
FEATURES OF THE CONTRACT, INCLUDING ALL VARIABLE INVESTMENT OPTIONS, ARE NOT
NECESSARILY AVAILABLE IN YOUR STATE OR AT CERTAIN AGES.
For more detailed information we urge you to read the contents of this
prospectus, as well as your contract. Please feel free to speak with your
financial professional, or call us, if you have any questions.
EQUI-VEST(R) Express(SM) at a glance -- key features 9
OTHER CONTRACTS
We offer a variety of fixed and variable annuity contracts. They may offer
features, including investment options, fees and/or charges that are different
from those offered by this prospectus. Not every contract is offered through
the same distributor. Upon request, your financial professional can show you
information regarding other Equitable Life annuity contracts that he or she
distributes. You can also contact us to find out more about any of the
Equitable Life annuity contracts.
10 EQUI-VEST(R) Express(SM) at a glance -- key features
Fee table
- --------------------------------------------------------------------------------
The fee table below will help you understand the various charges and expenses
that apply to your contract. The table reflects charges you will directly incur
under the contract, as well as charges and expenses of the Trusts and their
Portfolios that you will bear indirectly. Charges designed to approximate
certain taxes that may be imposed on us, such as premium taxes in your state,
may also apply. Also, an annuity administrative fee may apply when your annuity
payments are to begin. Each of the charges and expenses is more fully described
in "Charges and expenses" later in this Prospectus. For a complete description
of Portfolio charges and expenses, please see the attached prospectuses for
each Trust.
The fixed maturity options are not covered by the fee table and examples.
However, the annual administrative charge, the withdrawal charge, and the
third-party transfer or exchange charge do apply to the fixed maturity options.
Also, an annuity administrative fee may apply when your annuity payments are to
begin. A market value adjustment (up or down) may apply as a result of a
withdrawal, transfer or surrender of amounts from a fixed maturity option.
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CHARGES WE DEDUCT FROM YOUR VARIABLE INVESTMENT OPTIONS EXPRESSED AS AN
ANNUAL PERCENTAGE OF DAILY NET ASSETS
- ------------------------------------------------------------------------------------------------------------------------------------
Mortality and expense risk(1) 0.70% (maximum 1.75%)
Other expenses 0.25%
----
Total Separate Account A annual expenses 0.95% current (2.00% maximum)
- ------------------------------------------------------------------------------------------------------------------------------------
CHARGES WE DEDUCT FROM YOUR ACCOUNT VALUE ON EACH CONTRACT DATE ANNIVERSARY
- ------------------------------------------------------------------------------------------------------------------------------------
Annual administrative charge
If your account value on the last day of your contract year is less than $25,000(2)
for NQ contracts (or less than $20,000 for IRA contracts) $30 current ($65 maximum)
If your account value on the last day of your contract year is $25,000 or more for
NQ contracts (or $20,000 or more for IRA contracts) $ 0
- ------------------------------------------------------------------------------------------------------------------------------------
CHARGES WE DEDUCT FROM YOUR ACCOUNT VALUE AT THE TIME YOU REQUEST CERTAIN TRANSACTIONS
- ------------------------------------------------------------------------------------------------------------------------------------
Withdrawal charge as a percentage of contributions withdrawn (deducted if you Contract
surrender your contract or make certain withdrawals. The withdrawal charge per- Year
centage we use is determined by the contract year in which you make the 1 .................................... 7.00%
withdrawal or surrender your contract. For each contribution, we consider the con- 2 .................................... 6.00%
tract year in which we receive that contribution to be "contract year 1")(3) 3 .................................... 5.00%
4 .................................... 4.00%
5 .................................... 3.00%
6 .................................... 2.00%
7 .................................... 1.00%
8+ ................................... 0.00%
Charge for third-party transfer or exchange(4) $25 current ($65 maximum) for each
occurrence
Charge if you elect a Variable Immediate Annuity payout option $350
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Fee table 11
ANNUAL EXPENSES OF THE TRUSTS
(AS A PERCENTAGE OF AVERAGE DAILY NET ASSETS IN EACH PORTFOLIO)
- ------------------------------------------------------------------------------------------------------------------------------------
NET
TOTAL
OTHER ANNUAL
MANAGEMENT EXPENSES EXPENSES
FEES (AFTER EXPENSE (AFTER EXPENSE (AFTER EXPENSE
PORTFOLIO NAME LIMITATION)(5) 12B-1 FEES(6) LIMITATION)(7) LIMITATION)(8)
- ------------------------------------------------------------------------------------------------------------------------------------
AXA PREMIER VIP TRUST:
- ------------------------------------------------------------------------------------------------------------------------------------
AXA Premier VIP Core Bond 0.00% 0.25% 0.70% 0.95%
AXA Premier VIP Health Care 0.44% 0.25% 1.16% 1.85%
AXA Premier VIP International Equity 0.62% 0.25% 0.93% 1.80%
AXA Premier VIP Large Cap Core Equity 0.17% 0.25% 0.93% 1.35%
AXA Premier VIP Large Cap Growth 0.31% 0.25% 0.79% 1.35%
AXA Premier VIP Large Cap Value 0.08% 0.25% 1.02% 1.35%
AXA Premier VIP Small/Mid Cap Growth 0.42% 0.25% 0.93% 1.60%
AXA Premier VIP Small/Mid Cap Value 0.20% 0.25% 1.15% 1.60%
AXA Premier VIP Technology 0.58% 0.25% 1.02% 1.85%
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EQ ADVISORS TRUST:
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/Aggressive Stock 0.61% 0.25% 0.08% 0.94%
EQ/Alliance Common Stock 0.46% 0.25% 0.07% 0.78%
EQ/Alliance Global 0.73% 0.25% 0.12% 1.10%
EQ/Alliance Growth and Income 0.57% 0.25% 0.06% 0.88%
EQ/Alliance Growth Investors 0.57% 0.25% 0.06% 0.88%
EQ/Alliance Intermediate Government Securities 0.50% 0.25% 0.12% 0.87%
EQ/Alliance International 0.85% 0.25% 0.25% 1.35%
EQ/Alliance Money Market 0.33% 0.25% 0.07% 0.65%
EQ/Alliance Premier Growth 0.84% 0.25% 0.06% 1.15%
EQ/Alliance Quality Bond 0.53% 0.25% 0.07% 0.85%
EQ/Alliance Small Cap Growth 0.75% 0.25% 0.06% 1.06%
EQ/Alliance Technology 0.82% 0.25% 0.08% 1.15%
EQ/AXP New Dimensions 0.00% 0.25% 0.70% 0.95%
EQ/AXP Strategy Aggressive 0.00% 0.25% 0.75% 1.00%
EQ/Balanced 0.57% 0.25% 0.08% 0.90%
EQ/Bernstein Diversified Value 0.61% 0.25% 0.09% 0.95%
EQ/Calvert Socially Responsible 0.00% 0.25% 0.80% 1.05%
EQ/Capital Guardian International 0.66% 0.25% 0.29% 1.20%
EQ/Capital Guardian Research 0.55% 0.25% 0.15% 0.95%
EQ/Capital Guardian U.S. Equity 0.59% 0.25% 0.11% 0.95%
EQ/Emerging Markets Equity 0.87% 0.25% 0.68% 1.80%
EQ/Equity 500 Index 0.25% 0.25% 0.06% 0.56%
EQ/Evergreen Omega 0.00% 0.25% 0.70% 0.95%
EQ/FI Mid Cap 0.48% 0.25% 0.27% 1.00%
EQ/FI Small/Mid Cap Value 0.74% 0.25% 0.11% 1.10%
EQ/High Yield 0.60% 0.25% 0.07% 0.92%
EQ/International Equity Index 0.35% 0.25% 0.50% 1.10%
EQ/J.P. Morgan Core Bond 0.44% 0.25% 0.11% 0.80%
EQ/Janus Large Cap Growth 0.76% 0.25% 0.14% 1.15%
EQ/Lazard Small Cap Value 0.72% 0.25% 0.13% 1.10%
EQ/Marsico Focus 0.00% 0.25% 0.90% 1.15%
EQ/Mercury Basic Value Equity 0.60% 0.25% 0.10% 0.95%
EQ/MFS Emerging Growth Companies 0.63% 0.25% 0.09% 0.97%
EQ/MFS Investors Trust 0.58% 0.25% 0.12% 0.95%
EQ/MFS Research 0.63% 0.25% 0.07% 0.95%
EQ/Putnam Growth & Income Value 0.57% 0.25% 0.13% 0.95%
EQ/Putnam International Equity 0.71% 0.25% 0.29% 1.25%
EQ/Putnam Voyager 0.62% 0.25% 0.08% 0.95%
EQ/Small Company Index 0.25% 0.25% 0.35% 0.85%
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Notes:
(1) A portion of this charge is for providing the death benefit.
(2) During the first two contract years, this charge is equal to the lesser of
$30 or 2% of your account value if it applies. Thereafter, the charge is
$30 for each contract year. We reserve the right to increase this charge
to an annual maximum of $65.
(3) Deducted upon a withdrawal of amounts in excess of the 10% free withdrawal
amount. Important exceptions and limitations may eliminate or reduce this
charge.
12 Fee table
(4) We reserve the right to increase this charge to a maximum of $65 for each
occurrence.
(5) The management fees shown for each portfolio cannot be increased without a
vote of each portfolio's shareholders. See footnote (7) for any expense
limitation agreement information.
(6) Portfolio shares are all subject to fees imposed under the distribution
plan (the "Rule 12b-1 Plan") adopted by the Trusts pursuant to Rule 12b-1
under the Investment Company Act of 1940. The 12b-1 fee will not be
increased for the life of the contracts.
(7) The amounts shown as "Other Expenses" will fluctuate from year to year
depending on actual expenses. Since initial seed capital was invested for
the EQ/Marsico Focus Portfolio on August 31, 2001, "Other Expenses" shown
have been annualized. Initial seed capital was invested for the Portfolios
of the AXA Premier VIP Trust on December 31, 2001 thus, "Other Expenses"
shown are estimated. See footnote (8) for any expense limitation agreement
information.
(8) Equitable Life, the Trusts' manager, has entered into expense limitation
agreements with respect to certain Portfolios, which are effective through
April 30, 2003. Under these agreements Equitable Life has agreed to waive
or limit its fees and assume other expenses of each of these Portfolios,
if necessary, in an amount that limits each Portfolio's Total Annual
Expenses (exclusive of interest, taxes, brokerage commissions, capitalized
expenditures, and extraordinary expenses) to not more than the amounts
specified above as "Net Total Annual Expenses." Each portfolio may at a
later date make a reimbursement to Equitable Life for any of the
management fees waived or limited and other expenses assumed and paid by
Equitable Life pursuant to the expense limitation agreement provided that
the Portfolio's current annual operating expenses do not exceed the
operating expense limit determined for such Portfolio. For more
information, see the prospectuses for each Trust. The following chart
indicates management fees and other expenses before any fee waivers and/or
expense reimbursements that would have applied to each Portfolio.
Portfolios that are not listed below do not have an expense limitation
arrangement in effect or the expense limitation arrangement did not result
in a fee waiver or reimbursement.
- --------------------------------------------------------------------------------
MANAGEMENT OTHER EXPENSES
FEES (BEFORE (BEFORE ANY FEE
ANY FEE WAIVERS WAIVERS AND/OR
AND/OR EXPENSE EXPENSE
PORTFOLIO NAME REIMBURSEMENTS) REIMBURSEMENTS)
- --------------------------------------------------------------------------------
AXA PREMIER VIP TRUST:
- --------------------------------------------------------------------------------
AXA Premier VIP Core Bond 0.60% 0.84%
AXA Premier VIP Health Care 1.20% 1.16%
AXA Premier VIP International
Equity 1.05% 0.93%
AXA Premier VIP Large Cap Growth 0.90% 0.79%
AXA Premier VIP Large Cap Core
Equity 0.90% 0.93%
AXA Premier VIP Large Cap Value 0.90% 1.02%
AXA Premier VIP Small/Mid Cap
Growth 1.10% 0.93%
AXA Premier VIP Small/Mid Cap
Value 1.10% 1.15%
AXA Premier VIP Technology 1.20% 1.02%
- --------------------------------------------------------------------------------
EQ ADVISORS TRUST:
- --------------------------------------------------------------------------------
EQ/Alliance Premier Growth 0.90% 0.06%
EQ/Alliance Technology 0.90% 0.08%
EQ/AXP New Dimensions 0.65% 1.06%
EQ/AXP Strategy Aggressive 0.70% 0.77%
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
MANAGEMENT OTHER EXPENSES
FEES (BEFORE (BEFORE ANY FEE
ANY FEE WAIVERS WAIVERS AND/OR
AND/OR EXPENSE EXPENSE
PORTFOLIO NAME REIMBURSEMENTS) REIMBURSEMENTS)
- --------------------------------------------------------------------------------
EQ/Bernstein Diversified Value 0.65% 0.09%
EQ/Calvert Socially Responsible 0.65% 1.46%
EQ/Capital Guardian International 0.85% 0.29%
EQ/Capital Guardian Research 0.65% 0.15%
EQ/Capital Guardian U.S. Equity 0.65% 0.11%
EQ/Emerging Markets Equity 1.15% 0.68%
EQ/Evergreen Omega 0.65% 0.99%
EQ/FI Mid Cap 0.70% 0.27%
EQ/FI Small/Mid Cap Value 0.75% 0.11%
EQ/International Equity Index 0.35% 0.50%
EQ/J.P. Morgan Core Bond 0.45% 0.11%
EQ/Janus Large Cap Growth 0.90% 0.14%
EQ/Lazard Small Cap Value 0.75% 0.13%
EQ/Marsico Focus 0.90% 2.44%
EQ/MFS Investors Trust 0.60% 0.12%
EQ/MFS Research 0.65% 0.07%
EQ/Putnam Growth & Income Value 0.60% 0.13%
EQ/Putnam International Equity 0.85% 0.29%
EQ/Putnam Voyager 0.65% 0.08%
- --------------------------------------------------------------------------------
Fee table 13
EXAMPLES
The examples below show the expenses that a hypothetical contract owner would
pay in the situations illustrated. We assume a $1,000 contribution is invested
in one of the variable investment options listed and a 5% annual return is
earned on the assets in that option.(1) The examples assume the continuation of
Total Annual Expenses (after expense limitation) shown for each Portfolio of EQ
Advisors Trust in the table, above, for the entire one, three, five and ten
year periods included the examples. The annual administrative charge is based
on the charges that apply to a mix of estimated contract sizes, resulting in an
estimated administrative charge for the purpose of these examples of $0.714 per
$1,000. We assume there is no waiver of the withdrawal charge. Total Separate
Account A annual expenses used to compute the example below are the maximum
expenses rather than the lower current expenses discussed in "Charges and
Expenses" later in this Prospectus. For a complete description of portfolio
charges and expenses, please see the attached prospectuses for each Trust.
These examples should not be considered a representation of past or future
expenses for each option. Actual expenses may be greater or less than those
shown. Similarly, the annual rate of return assumed in the examples is not an
estimate or guarantee of future investment performance.
- ----------------------------------------------------------------------------------------------------
IF YOU SURRENDER YOUR CONTRACT
AT THE END OF EACH PERIOD
SHOWN, THE EXPENSES WOULD BE:
---------------------------------------------------
1 YEAR 3 YEARS 5 YEARS 10 YEARS
- ----------------------------------------------------------------------------------------------------
AXA Premier VIP Core Bond $ 101.70 $ 146.86 $ 194.42 $ 344.44
AXA Premier VIP Health Care $ 111.15 $ 174.53 $ 239.40 $ 428.25
AXA Premier VIP International Equity $ 110.62 $ 173.01 $ 236.95 $ 423.79
AXA Premier VIP Large Cap Core Equity $ 105.90 $ 159.22 $ 214.63 $ 382.65
AXA Premier VIP Large Cap Growth $ 105.90 $ 159.22 $ 214.63 $ 382.65
AXA Premier VIP Large Cap Value $ 105.90 $ 159.22 $ 214.63 $ 382.65
AXA Premier VIP Small/Mid Cap Growth $ 108.52 $ 166.90 $ 227.09 $ 405.74
AXA Premier VIP Small/Mid Cap Value $ 108.52 $ 166.90 $ 227.09 $ 405.74
AXA Premier VIP Technology $ 111.15 $ 174.53 $ 239.40 $ 428.25
EQ/Aggressive Stock $ 101.60 $ 146.55 $ 193.91 $ 343.47
EQ/Alliance Common Stock $ 99.92 $ 141.57 $ 185.72 $ 327.72
EQ/Alliance Global $ 103.28 $ 151.51 $ 202.04 $ 358.96
EQ/Alliance Growth and Income $ 100.97 $ 144.68 $ 190.85 $ 337.60
EQ/Alliance Growth Investors $ 100.97 $ 144.68 $ 190.85 $ 337.60
EQ/Alliance Intermediate Government Securities $ 100.86 $ 144.37 $ 190.34 $ 336.61
EQ/Alliance International $ 105.90 $ 159.22 $ 214.63 $ 382.65
EQ/Alliance Money Market $ 98.55 $ 137.51 $ 179.03 $ 314.74
EQ/Alliance Premier Growth $ 103.80 $ 153.05 $ 204.57 $ 363.75
EQ/Alliance Quality Bond $ 100.65 $ 143.75 $ 189.31 $ 334.64
EQ/Alliance Small Cap Growth $ 102.86 $ 150.27 $ 200.01 $ 355.11
EQ/Alliance Technology $ 103.80 $ 153.05 $ 204.57 $ 363.75
EQ/AXP New Dimensions $ 101.70 $ 146.86 $ 194.42 $ 344.44
EQ/AXP Strategy Aggressive $ 102.23 $ 148.41 $ 196.97 $ 349.31
EQ/Balanced $ 101.18 $ 145.31 $ 191.87 $ 339.56
EQ/Bernstein Diversified Value $ 101.70 $ 146.86 $ 194.42 $ 344.44
EQ/Calvert Socially Responsible $ 102.75 $ 149.96 $ 199.51 $ 354.14
EQ/Capital Guardian International $ 104.33 $ 154.60 $ 207.09 $ 368.51
EQ/Capital Guardian Research $ 101.70 $ 146.86 $ 194.42 $ 344.44
EQ/Capital Guardian U.S. Equity $ 101.70 $ 146.86 $ 194.42 $ 344.44
EQ/Emerging Markets Equity $ 110.62 $ 173.01 $ 236.95 $ 423.79
EQ/Equity 500 Index $ 97.61 $ 134.70 $ 174.37 $ 305.65
EQ/Evergreen Omega $ 101.70 $ 146.86 $ 194.42 $ 344.44
EQ/FI Mid Cap $ 102.23 $ 148.41 $ 196.97 $ 349.31
EQ/FI Small/Mid Cap Value $ 103.28 $ 151.51 $ 202.04 $ 358.96
EQ/High Yield $ 101.39 $ 145.93 $ 192.89 $ 341.52
EQ/International Equity Index $ 103.28 $ 151.51 $ 202.04 $ 358.96
EQ/J.P. Morgan Core Bond $ 100.13 $ 142.19 $ 186.75 $ 329.71
EQ/Janus Large Cap Growth $ 103.80 $ 153.05 $ 204.57 $ 363.75
EQ/Lazard Small Cap Value $ 103.28 $ 151.51 $ 202.04 $ 358.96
EQ/Marsico Focus $ 103.80 $ 153.05 $ 204.57 $ 363.75
EQ/Mercury Basic Value Equity $ 101.70 $ 146.86 $ 194.42 $ 344.44
EQ/MFS Emerging Growth Companies $ 101.91 $ 147.48 $ 195.44 $ 346.39
EQ/MFS Investors Trust $ 101.70 $ 146.86 $ 194.42 $ 344.44
EQ/MFS Research $ 101.70 $ 146.86 $ 194.42 $ 344.44
EQ/Putnam Growth & Income Value $ 101.70 $ 146.86 $ 194.42 $ 344.44
EQ/Putnam International Equity $ 104.85 $ 156.14 $ 209.61 $ 373.25
EQ/Putnam Voyager $ 101.70 $ 146.86 $ 194.42 $ 344.44
EQ/Small Company Index $ 100.65 $ 143.75 $ 189.31 $ 334.64
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IF YOU DO NOT SURRENDER YOUR CONTRACT
AT THE END OF EACH PERIOD
SHOWN, THE EXPENSES WOULD BE:
---------------------------------------------------
1 YEAR 3 YEARS 5 YEARS 10 YEARS
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AXA Premier VIP Core Bond $ 31.70 $ 96.86 $ 164.42 $ 344.44
AXA Premier VIP Health Care $ 41.15 $ 124.53 $ 209.40 $ 428.25
AXA Premier VIP International Equity $ 40.62 $ 123.01 $ 206.95 $ 423.79
AXA Premier VIP Large Cap Core Equity $ 35.90 $ 109.22 $ 184.63 $ 382.65
AXA Premier VIP Large Cap Growth $ 35.90 $ 109.22 $ 184.63 $ 382.65
AXA Premier VIP Large Cap Value $ 35.90 $ 109.22 $ 184.63 $ 382.65
AXA Premier VIP Small/Mid Cap Growth $ 38.52 $ 116.90 $ 197.09 $ 405.74
AXA Premier VIP Small/Mid Cap Value $ 38.52 $ 116.90 $ 197.09 $ 405.74
AXA Premier VIP Technology $ 41.15 $ 124.53 $ 209.40 $ 428.25
EQ/Aggressive Stock $ 31.60 $ 96.55 $ 163.91 $ 343.47
EQ/Alliance Common Stock $ 29.92 $ 91.57 $ 155.72 $ 327.72
EQ/Alliance Global $ 33.28 $ 101.51 $ 172.04 $ 358.96
EQ/Alliance Growth and Income $ 30.97 $ 94.68 $ 160.85 $ 337.60
EQ/Alliance Growth Investors $ 30.97 $ 94.68 $ 160.85 $ 337.60
EQ/Alliance Intermediate Government Securities $ 30.86 $ 94.37 $ 160.34 $ 336.61
EQ/Alliance International $ 35.90 $ 109.22 $ 184.63 $ 382.65
EQ/Alliance Money Market $ 28.55 $ 87.51 $ 149.03 $ 314.74
EQ/Alliance Premier Growth $ 33.80 $ 103.05 $ 174.57 $ 363.75
EQ/Alliance Quality Bond $ 30.65 $ 93.75 $ 159.31 $ 334.64
EQ/Alliance Small Cap Growth $ 32.86 $ 100.27 $ 170.01 $ 355.11
EQ/Alliance Technology $ 33.80 $ 103.05 $ 174.57 $ 363.75
EQ/AXP New Dimensions $ 31.70 $ 96.86 $ 164.42 $ 344.44
EQ/AXP Strategy Aggressive $ 32.23 $ 98.41 $ 166.97 $ 349.31
EQ/Balanced $ 31.18 $ 95.31 $ 161.87 $ 339.56
EQ/Bernstein Diversified Value $ 31.70 $ 96.86 $ 164.42 $ 344.44
EQ/Calvert Socially Responsible $ 32.75 $ 99.96 $ 169.51 $ 354.14
EQ/Capital Guardian International $ 34.33 $ 104.60 $ 177.09 $ 368.51
EQ/Capital Guardian Research $ 31.70 $ 96.86 $ 164.42 $ 344.44
EQ/Capital Guardian U.S. Equity $ 31.70 $ 96.86 $ 164.42 $ 344.44
EQ/Emerging Markets Equity $ 40.62 $ 123.01 $ 206.95 $ 423.79
EQ/Equity 500 Index $ 27.61 $ 84.70 $ 144.37 $ 305.65
EQ/Evergreen Omega $ 31.70 $ 96.86 $ 164.42 $ 344.44
EQ/FI Mid Cap $ 32.23 $ 98.41 $ 166.97 $ 349.31
EQ/FI Small/Mid Cap Value $ 33.28 $ 101.51 $ 172.04 $ 358.96
EQ/High Yield $ 31.39 $ 95.93 $ 162.89 $ 341.52
EQ/International Equity Index $ 33.28 $ 101.51 $ 172.04 $ 358.96
EQ/J.P. Morgan Core Bond $ 30.13 $ 92.19 $ 156.75 $ 329.71
EQ/Janus Large Cap Growth $ 33.80 $ 103.05 $ 174.57 $ 363.75
EQ/Lazard Small Cap Value $ 33.28 $ 101.51 $ 172.04 $ 358.96
EQ/Marsico Focus $ 33.80 $ 103.05 $ 174.57 $ 363.75
EQ/Mercury Basic Value Equity $ 31.70 $ 96.86 $ 164.42 $ 344.44
EQ/MFS Emerging Growth Companies $ 31.91 $ 97.48 $ 165.44 $ 346.39
EQ/MFS Investors Trust $ 31.70 $ 96.86 $ 164.42 $ 344.44
EQ/MFS Research $ 31.70 $ 96.86 $ 164.42 $ 344.44
EQ/Putnam Growth & Income Value $ 31.70 $ 96.86 $ 164.42 $ 344.44
EQ/Putnam International Equity $ 34.85 $ 106.14 $ 179.61 $ 373.25
EQ/Putnam Voyager $ 31.70 $ 96.86 $ 164.42 $ 344.44
EQ/Small Company Index $ 30.65 $ 93.75 $ 159.31 $ 334.64
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14 Fee table
(1) The amount accumulated from the $1,000 contribution could not be paid in
the form of an annuity payout option at the end of any of the periods
shown in the examples. This is because if the amount applied to purchase
an annuity payout option is less than $2,000, or the initial payment is
less than $20, we may pay the amount to you in a single sum instead of as
payments under an annuity payout option. See "Accessing your money" later
in this Prospectus.
IF YOU ELECT A VARIABLE IMMEDIATE ANNUITY PAYOUT OPTION:
Assuming an annuity payout option could be issued, (see Note (1) above), and
you elect a Variable Immediate Annuity payout option, the expenses shown in the
above example for "if you do not surrender your contract" would, in each case,
be increased by $5.44 based on the average amount applied to annuity payout
options in 2001. See "Annuity administrative fee" in "Charges and expenses"
later in this Prospectus.
CONDENSED FINANCIAL INFORMATION
Please see Appendix I at the end of this Prospectus for the unit values and the
number of units outstanding as of the end of the period shown for each of the
variable investment options available as of December 31, 2001.
Fee table 15
1. Contract features and benefits
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HOW YOU CAN PURCHASE AND CONTRIBUTE TO YOUR CONTRACT
You may purchase a contract by making payments to us that we call
"contributions." We require a minimum contribution amount of $50 to purchase a
contract. The minimum contribution amount under our automatic investment
program is $20. We discuss the automatic investment program under "About other
methods of payment" in "More information" later in this Prospectus. The
following table summarizes our rules regarding contributions to your contract.
All ages in the table refer to the age of the annuitant named in the contract.
- --------------------------------------------------------------------------------
The "annuitant" is the person who is the measuring life for determining
contract benefits. The annuitant is not necessarily the contract owner.
- --------------------------------------------------------------------------------
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CONTRACT AVAILABLE FOR SOURCE OF LIMITATIONS ON
TYPE ANNUITANT ISSUE AGES CONTRIBUTIONS CONTRIBUTIONS
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NQ 0 through 83 o After-tax money. o Additional contributions can be made up to
age 84.
o Paid to us by check or transfer of contract
value in a tax deferred exchange under
Section 1035 of the Internal Revenue Code.
o Paid to us by an employer who establishes a
payroll deduction program.
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Traditional 0 through 83 o "Regular" traditional IRA contributions o Additional rollover contributions can be
IRA* either made by you or paid to us by an made up to age 84.
employer who establishes a payroll deduc-
tion program. o Regular contributions may not exceed
$3,000 for 2002.
o For the calendar year 2002, additional o No regular IRA contributions in the calendar
catch-up contributions. year you turn age 70-1/2 and thereafter.
o Eligible rollover distributions from TSA con-
tracts, or other 403(b) arrangements, o Rollover and direct transfer contributions
qualified plans and governmental EDC after age 701/2 must be net of required mini-
plans. mum distributions.
o Although we accept rollover and direct
o Rollovers from another traditional individual transfer contributions under the Traditional
retirement arrangement. IRA contracts, we intend that these contracts
o Direct custodian-to-custodian transfers from be used for ongoing regular contributions.
other traditional individual retirement
arrangements. o Additional catch-up contributions totalling
up to $500 can be made for the calendar
year 2002 where the owner is at least age
50 but under age 70-1/2 at any time during
2002.
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Roth IRA 0 through 83 o Regular after-tax contributions either made o Additional contributions can be made up to
by you or paid to us by an employer who age 84.
establishes a payroll deduction program.
o Regular Roth IRA contributions may not
o For the calendar year 2002, additional exceed $3,000 for the calendar year 2002.
catch-up contributions
o Contributions are subject to income limits
o Rollovers from another Roth IRA. and other tax rules. See "Contributions to
Roth IRAs" in "Tax information" later in this
o Conversion rollovers from a traditional IRA. Prospectus.
o Direct transfers from another Roth IRA.
o Additional catch-up contributions totalling
up to $500 can be made for the calendar
year where the owner is at least age 50 at
any time during 2002.
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* For traditional IRA contracts, the maximum issue age is 70, but we will issue up to age 83 if the contribution is a rollover
contribution.
16 Contract features and benefits
See "Tax information" later in this Prospectus for a more detailed discussion
of sources of contributions and certain contribution limitations. We may refuse
to accept any contribution if the sum of all contributions under all
EQUI-VEST(R) contracts with the same annuitant would then total more than
$1,500,000. We may also refuse to accept any contribution if the sum of all
contributions under all Equitable Life annuity accumulation contracts that you
own would then total more than $2,500,000.
For information on when contributions are credited, see "Dates and prices at
which contract events occur" in "More information" later in this Prospectus.
Contract features and benefits 17
OWNER AND ANNUITANT REQUIREMENTS
Under NQ contracts, the annuitant can be different than the owner. A joint
owner may also be named. Only natural persons can be joint owners. This means
that an entity such as a corporation cannot be a joint owner.
Under any type of the IRA contract, the owner and annuitant must be the same
person.
HOW YOU CAN MAKE YOUR CONTRIBUTIONS
Except as noted below, contributions must be made by check drawn on a U.S. bank
in U.S. dollars, and made payable to Equitable Life. We may also apply
contributions made pursuant to a 1035 tax-free exchange or direct transfer. We
do not accept third-party checks endorsed to us except for rollover
contributions, tax-free exchanges or trustee checks that involve no refund. All
checks are subject to our ability to collect the funds. We reserve the right to
reject a payment if it is received in an unacceptable form.
Additional contributions may also be made by wire transfer or our automatic
investment program. The method of payment is discussed in detail under "About
other methods of payment" in "More information" later in this Prospectus.
Your initial contribution must generally be accompanied by an application and
any other form we need to process the contributions. If any information is
missing or unclear, we will try to obtain that information. If we are unable to
obtain all of the information we require within five business days after we
receive an incomplete application or form, we will inform the financial
professional submitting the application on your behalf. We will then return the
contribution to you unless you specifically direct us to keep your contribution
until we receive the required information.
Generally, you may make additional contributions at any time. You may do so in
single sum amounts, on a regular basis, or as your financial situation permits.
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Our "business day" generally is any day on which the New York Stock Exchange is
open for trading. A business day does not include any day we choose not to open
due to emergency conditions. We may also close early due to emergency
conditions.
- --------------------------------------------------------------------------------
WHAT ARE YOUR INVESTMENT OPTIONS UNDER THE CONTRACT?
Your investment options are the variable investment options and the fixed
maturity options.
VARIABLE INVESTMENT OPTIONS
Your investment results in any one of the variable investment options will
depend on the investment performance of the underlying portfolios. You can lose
your principal when investing in the variable investment options. In periods of
poor market performance, the net return, after charges and expenses, may result
in negative yields, including for the EQ/Alliance Money Market variable
investment option. Listed below are the currently available portfolios, their
investment objectives, and their advisers.
- --------------------------------------------------------------------------------
You can choose from among the variable investment options and fixed maturity
options.
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18 Contract features and benefits
PORTFOLIOS OF THE TRUSTS
You should note that some portfolios have objectives and strategies that are
substantially similar to those of certain funds that are purchased directly
rather than under a variable insurance product such as EQUI-VEST(R). These
portfolios may even have the same manager(s) and/or a similar name. However,
there are numerous factors that can contribute to differences in performance
between two investments, particularly over short periods of time. Such factors
include the timing of stock purchases and sales; differences in fund cash flows;
and specific strategies employed by the portfolio manager.
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AXA PREMIER VIP TRUST:
PORTFOLIO NAME OBJECTIVE ADVISER(S)
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AXA Premier VIP Core Bond* Seeks a balance of a high current BlackRock Advisors, Inc.
income and capital Pacific Investment Management Company LLC
appreciation consistent with a
prudent level of risk
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AXA Premier VIP Health Care* Long-term growth of capital AIM Capital Management, Inc.
Dresdner RCM Global Investors LLC
Wellington Management Company, LLP
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AXA Premier VIP International Long-term growth of capital Alliance Capital Management L.P., through its
Equity* Bernstein Investment Research and
Management Unit
Bank of Ireland Asset Management (U.S.)
Limited
OppenheimerFunds, Inc.
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AXA Premier VIP Large Cap Core Long-term growth of capital Alliance Capital Management L.P., through its
Equity* Bernstein Investment Research and
Management Unit
Janus Capital Management LLC
Thornburg Investment Management, Inc.
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AXA Premier VIP Large Cap Long-term growth of capital Alliance Capital Management L.P.
Growth* Dresdner RCM Global Investors LLC
TCW Investment Management Company
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AXA Premier VIP Large Cap Value* Long-term growth of capital Alliance Capital Management L.P.
Institutional Capital Corporation
MFS Investment Management
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AXA Premier VIP Small/Mid Cap Long-term growth of capital Alliance Capital Management L.P.
Growth* MFS Investment Management
RS Investment Management, L.P.
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AXA Premier VIP Small/Mid Cap Long-term growth of capital AXA Rosenberg Investment Management LLC
Value* The Boston Company Asset Management, LLC
TCW Investment Management Company
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AXA Premier VIP Technology* Long-term growth of capital Alliance Capital Management L.P.
Dresdner RCM Global Investors LLC
Firsthand Capital Management Inc.
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EQ ADVISORS TRUST:
PORTFOLIO NAME OBJECTIVE ADVISER(S)
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/Aggressive Stock Seeks to achieve long-term growth of Alliance Capital Management L.P.
capital Marsico Capital Management, LLC
MFS Investment Management
Provident Investment Counsel, Inc.
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EQ/Alliance Common Stock Seeks to achieve long-term growth of Alliance Capital Management L.P.
capital and increased income
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EQ/Alliance Global Seeks long-term growth of capital Alliance Capital Management L.P.
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Contract features and benefits 19
PORTFOLIOS OF THE TRUSTS (CONTINUED)
- ---------------------------------------------------------------------------------------------------------------------------------
PORTFOLIO NAME OBJECTIVE ADVISER(S)
- ---------------------------------------------------------------------------------------------------------------------------------
EQ/Alliance Growth and Income Seeks to provide a high total return Alliance Capital Management L.P.
- ---------------------------------------------------------------------------------------------------------------------------------
EQ/Alliance Growth Investors Seeks to achieve the highest total return consistent Alliance Capital Management L.P.
with the Adviser's determination of reasonable risk
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EQ/Alliance Intermediate Seeks to achieve high current income consistent with Alliance Capital Management L.P.
Government Securities relative stability of principal
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EQ/Alliance International Seeks long-term growth of capital Alliance Capital Management L.P.
(including through its Bernstein
Investment Research and Management
Unit)
- ---------------------------------------------------------------------------------------------------------------------------------
EQ/Alliance Money Market Seeks to obtain a high level of current income, Alliance Capital Management L.P.
preserve its assets and maintain liquidity
- ---------------------------------------------------------------------------------------------------------------------------------
EQ/Alliance Premier Growth Seeks long-term growth of capital Alliance Capital Management L.P.
- ---------------------------------------------------------------------------------------------------------------------------------
EQ/Alliance Quality Bond Seeks to achieve high current income consistent Alliance Capital Management L.P.
with moderate risk of capital
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EQ/Alliance Small Cap Growth Seeks to achieve long-term growth of capital Alliance Capital Management L.P.
- ---------------------------------------------------------------------------------------------------------------------------------
EQ/Alliance Technology Seeks to achieve growth of capital. Current Alliance Capital Management L.P.
income is incidental to the Portfolio's objective
- ---------------------------------------------------------------------------------------------------------------------------------
EQ/AXP New Dimensions Seeks long-term growth of capital American Express Financial Corporation
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EQ/AXP Strategy Aggressive Seeks long-term growth of capital American Express Financial Corporation
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EQ/Balanced Seeks to achieve a high return through both Alliance Capital Management L.P.
appreciation of capital and current income Capital Guardian Trust Company
Jennison Associates, LLC
Prudential Investments LLC
Mercury Advisors
- ---------------------------------------------------------------------------------------------------------------------------------
EQ/Bernstein Diversified Value Seeks capital appreciation Alliance Capital Management L.P.,
through its Bernstein Investment
Research and Management Unit
- ---------------------------------------------------------------------------------------------------------------------------------
EQ/Calvert Socially Responsible Seeks long-term capital appreciation Calvert Asset Management Company, Inc.
Brown Capital Management, Inc.
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EQ/Capital Guardian International Seeks long-term growth of capital Capital Guardian Trust Company
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EQ/Capital Guardian Research Seeks long-term growth of capital Capital Guardian Trust Company
- ---------------------------------------------------------------------------------------------------------------------------------
EQ/Capital Guardian U.S. Equity Seeks long-term growth of capital Capital Guardian Trust Company
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EQ/Emerging Markets Equity Seeks long-term capital appreciation Morgan Stanley Investment Management
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EQ/Equity 500 Index Seeks a total return before expenses that approximates Alliance Capital Management L.P.
the total return performance of the S&P 500 Index,
including reinvestment of dividends, at a risk level
consistent with that of the S&P 500 Index
- ---------------------------------------------------------------------------------------------------------------------------------
EQ/Evergreen Omega Seeks long-term capital growth Evergreen Investment Management
Company, LLC
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EQ/FI Mid Cap Seeks long-term growth of capital Fidelity Management & Research Company
- ---------------------------------------------------------------------------------------------------------------------------------
EQ/FI Small/Mid Cap Value Seeks long-term capital appreciation Fidelity Management & Research Company
- ---------------------------------------------------------------------------------------------------------------------------------
EQ/High Yield Seeks to achieve a high total return through a combina- Alliance Capital Management L.P.
tion of current income and capital appreciation
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20 Contract features and benefits
PORTFOLIOS OF THE TRUSTS (CONTINUED)
- ---------------------------------------------------------------------------------------------------------------------------------
PORTFOLIO NAME OBJECTIVE ADVISER(S)
- ---------------------------------------------------------------------------------------------------------------------------------
EQ/International Equity Index Seeks to replicate as closely as possible (before Deutsche Asset Management Inc.
deduction of Portfolio expenses) the total return
of the MSCI EAFE Index
- ---------------------------------------------------------------------------------------------------------------------------------
EQ/J.P. Morgan Core Bond Seeks to provide a high total return consistent with J.P. Morgan Investment Management, Inc.
moderate risk of capital and maintenance of liquidity
- ---------------------------------------------------------------------------------------------------------------------------------
EQ/Janus Large Cap Growth Seeks long-term growth of capital Janus Capital Management LLC
- ---------------------------------------------------------------------------------------------------------------------------------
EQ/Lazard Small Cap Value Seeks capital appreciation Lazard Asset Management
- ---------------------------------------------------------------------------------------------------------------------------------
EQ/Marsico Focus* Seeks to achieve long-term growth of capital Marsico Capital Management, LLC
- ---------------------------------------------------------------------------------------------------------------------------------
EQ/Mercury Basic Value Equity Seeks capital appreciation and secondarily, income Mercury Advisors
- ---------------------------------------------------------------------------------------------------------------------------------
EQ/MFS Emerging Growth Seeks to provide long-term capital growth MFS Investment Management
Companies
- ---------------------------------------------------------------------------------------------------------------------------------
EQ/MFS Investors Trust Seeks long-term growth of capital with a secondary MFS Investment Management
objective to seek reasonable current income
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EQ/MFS Research Seeks to provide long-term growth of capital and future MFS Investment Management
income
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EQ/Putnam Growth & Income Seeks capital growth. Current income is a secondary Putnam Investment Management, LLC
Value objective
- ---------------------------------------------------------------------------------------------------------------------------------
EQ/Putnam International Equity Seeks capital appreciation Putnam Investment Management, LLC
- ---------------------------------------------------------------------------------------------------------------------------------
EQ/Putnam Voyager Seeks long-term growth of capital and any increased Putnam Investment Management, LLC
income that results from this growth
- ---------------------------------------------------------------------------------------------------------------------------------
EQ/Small Company Index Seeks to replicate as closely as possible (before Deutsche Asset Management Inc.
deduction of Portfolio expenses) the total return
of the Russell 2000 Index
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* Subject to state availability.
Other important information about the portfolios is included in the
prospectuses for each Trust attached at the end of this prospectus.
Contract features and benefits 21
FIXED MATURITY OPTIONS
We offer fixed maturity options with maturity dates ranging from one to ten
years. You can allocate your contributions to one or more of these fixed
maturity options. However, you may not allocate more than one contribution to
any one fixed maturity option. These amounts become part of our general account
assets. They will accumulate interest at the "rate to maturity" for each fixed
maturity option. The total amount you allocate to and accumulate in each fixed
maturity option is called the "fixed maturity amount." The fixed maturity
options are not available in contracts issued in Maryland.
- --------------------------------------------------------------------------------
Fixed maturity options range from one to ten years to maturity.
- --------------------------------------------------------------------------------
The rate to maturity you will receive for each fixed maturity option is the
rate to maturity in effect for new contributions allocated to that fixed
maturity option on the date we apply your contribution. If you make any
withdrawals or transfers from a fixed maturity option before the maturity date,
we will make a "market value adjustment" that may increase or decrease any
fixed maturity amount you have left in that fixed maturity option. We discuss
the market value adjustment below and in greater detail later in this
Prospectus in "More information."
On the maturity date of a fixed maturity option, your fixed maturity amount,
assuming you have not made any withdrawals or transfers, will equal your
contribution to that fixed maturity option plus interest, at the rate to
maturity for that contribution, to the date of the calculation. This is the
fixed maturity option's "maturity value." Before maturity, the current value we
will report for your fixed maturity amount will reflect a market value
adjustment. Your current value will reflect the market value adjustment that we
would make if you were to withdraw all of your fixed maturity amounts on the
date of the report. We call this your "market adjusted amount."
FIXED MATURITY OPTIONS AND MATURITY DATES. We currently offer fixed maturity
options ending on June 15th for each of the maturity years 2003 through 2012.
Not all of the fixed maturity options will be available for annuitants ages 76
and above. See "Allocating your contributions" below. As fixed maturity options
expire, we expect to add maturity years so that generally 10 fixed maturity
options are available at any time.
We will not accept allocations to a fixed maturity option if on the date the
contribution is to be applied:
o you previously allocated a contribution or made a transfer to the same fixed
maturity option; or
o the rate to maturity is 3%; or
o the fixed maturity option's maturity date is within 45 days; or
o the fixed maturity option's maturity date is later than the date annuity
payments are to begin.
YOUR CHOICES AT THE MATURITY DATE. We will notify you at least 45 days before
each of your fixed maturity options is scheduled to mature. At that time, you
may choose to have one of the following take place on the maturity date, as
long as none of the conditions listed above or in "Allocating your
contributions" below would apply:
(a) transfer the maturity value into another available fixed maturity option, or
into any of the variable investment options; or
(b) withdraw the maturity value (there may be a withdrawal charge).
If we do not receive your choice on or before the fixed maturity option's
maturity date, we will automatically transfer your maturity value into the
fixed maturity option that will mature next (or another investment option if we
are required to do so by any state regulation). We may change our procedures in
the future.
MARKET VALUE ADJUSTMENT. If you make any withdrawals (including transfers,
surrender or termination of your contract, or when we make deductions for
charges) from a fixed maturity option before it matures, we will make a market
value adjustment, which will increase or decrease any fixed maturity amount you
have in that fixed maturity option. The amount of the adjustment will depend on
two factors:
(a) the difference between the rate to maturity that applies to the amount
being withdrawn and the rate to maturity in effect at that time for new
allocations to that same fixed maturity option, and
(b) the length of time remaining until the maturity date.
In general, if interest rates rise from the time that you originally allocate
an amount to a fixed maturity option to the time that you take a withdrawal,
the market value adjustment will be negative. Likewise, if interest rates drop
at the end of that time, the market value adjustment will be positive. Also,
the amount of the market value adjustment, either up or down, will be greater
the longer the time remaining until the fixed maturity option's maturity date.
Therefore, it is possible that the market value adjustment could greatly reduce
your value in the fixed maturity options, particularly in the fixed maturity
options with later maturity dates.
We provide an illustration of the market adjusted amount of specified maturity
values, an explanation of how we calculate the market value adjustment, and
information concerning our general account and investments purchased with
amounts allocated to the fixed maturity options, in "More information" later in
this Prospectus. Appendix II at the end of this Prospectus provides an example
of how the market value adjustment is calculated.
ALLOCATING YOUR CONTRIBUTIONS
You may choose from among two ways to allocate your contributions:
self-directed and principal assurance.
SELF-DIRECTED ALLOCATION
You may allocate your contributions to one or more, or all of the investment
options. However, you may not allocate more than one contribution to any one
fixed maturity option. If the annuitant is age 76 or older, you may only
allocate contributions to fixed maturity options with maturities of five years
or less. Allocations must be in whole percentages and you may change your
allocation percentages at any time. However, the total of your allocations must
equal 100%. Once your contributions are allocated to the investment options
they become part of your account value. We discuss account value in
"Determining your contract's value."
PRINCIPAL ASSURANCE ALLOCATION
Under this allocation program, you select a fixed maturity option and we
specify the portion of your initial contribution to be allocated to
22 Contract features and benefits
that fixed maturity option in an amount that will cause the maturity value to
equal the amount of your entire initial contribution on the fixed maturity
option's maturity date. The maturity date you select generally may not be later
than 10 years, or earlier than 6 years from your contract date. You allocate
the rest of your contribution to the variable investment options however you
choose.
For example, if your initial contribution is $10,000, and on February 15, 2002
you chose the fixed maturity option with a maturity date of June 15, 2011,
since the rate to maturity was 5.65% on February 15, 2002, we would have
allocated $5,987 to that fixed maturity option and the balance to your choice
of variable investment options. On the maturity date your value in the fixed
maturity option would be $10,000.
The principal assurance allocation is only available for annuitant ages 75 or
younger when the contract is issued. If you are purchasing an Equitable Life
traditional IRA contract, before you select a maturity year that would extend
beyond the year in which you will reach age 70-1/2, you should consider whether
your value in the variable investment options, or your other traditional IRA
funds, are sufficient to meet your required minimum distributions. See "Tax
information" later in this Prospectus.
YOUR RIGHT TO CANCEL WITHIN A CERTAIN NUMBER OF DAYS
If, for any reason, you are not satisfied with your contract, you may return it
to us for a refund. To exercise this cancellation right, you must mail the
contract directly to our processing office within 10 days after you receive it.
If state law requires, this "free look" period may be longer.
For contributions allocated to the variable investment options, your refund
will equal your contributions, reflecting any investment gain or loss that also
reflects the daily charges we deduct. For contributions allocated to the fixed
maturity options, your refund will equal the amount of the contribution
allocated to the fixed maturity options reflecting any positive or negative
market value adjustments. Some states require that we refund the full amount of
your contribution (not including any investment gain or loss, interest, or
market value adjustment). For IRA contracts returned to us within seven days
after you receive it, we are required to refund the full amount of your
contribution.
We may require that you wait six months before you apply for a contract with us
again if:
o you cancel your contract during the free look period; or
o you change your mind before you receive your contract whether we have
received your contribution or not.
Please see "Tax information" later in this Prospectus for possible consequences
of cancelling your contract.
In addition to the cancellation right described above, if you fully or
partially convert an existing traditional IRA contract to a Roth IRA contract,
you may cancel your Roth IRA contract and return to a traditional IRA contract.
Our processing office, or your financial professional, can provide you with the
cancellation instructions. Ask for the form entitled "EQUI-VEST(R) Roth IRA
Re-Characterization Form."
Contract features and benefits 23
2. Determining your contract's value
- --------------------------------------------------------------------------------
YOUR ACCOUNT VALUE AND CASH VALUE
Your "account value" is the total of the: (i) values you have in the variable
investment options and (ii) market adjusted amounts you have in the fixed
maturity options. These amounts are subject to certain fees and charges
discussed under "Charges and expenses" later in this Prospectus.
Your contract also has a "cash value." At any time before annuity payments
begin, your contract's cash value is equal to the account value less: (i) any
applicable withdrawal charges and (ii) the total amount or a pro rata portion
of the annual administrative charge. Please see "Surrender of your contract to
receive its cash value" in "Accessing your money" later in this Prospectus.
YOUR CONTRACT'S VALUE IN THE VARIABLE INVESTMENT OPTIONS
Each variable investment option invests in shares of a corresponding portfolio.
Your value in each variable investment option is measured by "units." The value
of your units will increase or decrease as though you had invested it in the
corresponding portfolio's shares directly. Your value, however, will be reduced
by the amount of the fees and charges that we deduct under the contract.
- --------------------------------------------------------------------------------
Units measure your value in each variable investment option.
- --------------------------------------------------------------------------------
The unit value for each variable investment option depends on the investment
performance of that option minus daily charges for mortality and expense risks
and other expenses. On any day, your value in any variable investment option
equals the number of units credited to that option, adjusted for any units
purchased for or deducted from your contract under that option, multiplied by
that day's value for one unit. The number of your contract units in any
variable investment option does not change unless they are:
(i) increased to reflect additional contributions;
(ii) decreased to reflect a withdrawal (plus applicable withdrawal charges);
or
(iii) increased to reflect a transfer into, or decreased to reflect a transfer
out of a variable investment option.
In addition, when we deduct the annual administrative charge or third-party
transfer or exchange charge, we will reduce the number of units credited to
your contract. A description of how unit values are calculated is found in the
SAI.
YOUR CONTRACT'S VALUE IN THE FIXED MATURITY OPTIONS
Your value in each fixed maturity option at any time before the maturity date
is the market adjusted amount in each option. This is equivalent to your fixed
maturity amount increased or decreased by the market value adjustment. Your
value, therefore, may be higher or lower than your contributions (less
withdrawals) accumulated at the rate to maturity. At the maturity date, your
value in the fixed maturity option will equal its maturity value.
24 Determining your contract's value
3. Transferring your money among investment options
- --------------------------------------------------------------------------------
TRANSFERRING YOUR ACCOUNT VALUE
At any time before the date annuity payments are to begin, you can transfer
some or all of your account value among the investment options, subject to the
following:
o you must transfer at least $300 of account value or, if less, the entire
amount in the investment option. We may waive the $300 requirement.
o you may not transfer to a fixed maturity option in which you already have
value.
o you may not transfer to a fixed maturity option if its maturity date is
later than the date annuity payments are to begin.
o if the annuitant is age 76 or older, you must limit your transfers to fixed
maturity options to those with maturities of five years or less.
o if you make transfers out of a fixed maturity option other than at its
maturity date, the transfer may cause a market value adjustment.
Subject to the terms of your contract, upon advance notice, we may change or
establish additional restrictions on transfers among the investment options. A
transfer request does not change your percentages for allocating current or
future contributions among the investment options.
You may request a transfer in writing, or by telephone using TOPS or on line
using EQAccess. You must send in all signed written requests directly to our
processing office. Transfer requests should specify:
(1) the contract number,
(2) the dollar amounts to be transferred, and
(3) the investment options to and from which you are transferring.
We will confirm all transfers in writing.
DISRUPTIVE TRANSFER ACTIVITY
You should note that the EQUI-VEST(R) Express(SM) contract is not designed for
professional "market timing" organizations, or other organizations or
individuals engaging in a market timing strategy, making programmed transfers,
frequent transfers or transfers that are large in relation to the total assets
of the underlying portfolio. These kind of strategies and transfer activities
are disruptive to the underlying portfolios in which the variable investment
options invest. If we determine that your transfer patterns among the variable
investment options are disruptive to the underlying portfolios, we may, among
other things, restrict the availability of personal telephone requests,
facsimile transmissions, automated telephone services, Internet services or any
electronic transfer services. We may also refuse to act on transfer
instructions of an agent who is acting on behalf of one or more owners.
We currently consider transfers into and out of (or vice versa) the same
variable investment option within a five business day period as potentially
disruptive transfer activity. In order to prevent disruptive activity, we
monitor the frequency of transfers, including the size of transfers in relation
to portfolio assets, in each underlying portfolio, and we take appropriate
action, which may include the actions described above to restrict availability
of voice, fax and automated transaction services, when we consider the activity
of owners to be disruptive. We currently provide a letter to owners who have
engaged in such activity of our intention to restrict such services. However,
we may not continue to provide such letters. We may also, in our sole
discretion and without further notice, change what we consider disruptive
transfer activity, as well as change our procedures to restrict this activity.
AUTOMATIC TRANSFER OPTIONS
GENERAL DOLLAR-COST AVERAGING
Dollar-cost averaging allows you to gradually allocate amounts to the variable
investment options by periodically transferring approximately the same dollar
amount to the variable investment options you select. This will cause you to
purchase more units if the unit's value is low and fewer units if the unit's
value is high. Therefore, you may get a lower average cost per unit over the
long term. This plan of investing, however, does not guarantee that you will
earn a profit or be protected against losses.
One of our automatic transfer options, referred to as general dollar-cost
averaging, allows you to have amounts automatically transferred from the
EQ/Alliance Money Market option to the other variable investment options on a
monthly basis. In order to elect the general dollar-cost averaging option you
must have a minimum of $2,000 in the EQ/Alliance Money Market option on the
date we receive your election form at our processing office. You can specify
the number of monthly transfers or instruct us to continue to make monthly
transfers until all available amounts in the EQ/Alliance Money Market option
have been transferred out.
The minimum amount that we will transfer each month is $50. The maximum amount
we will transfer is equal to your value in the EQ/Alliance Money Market option
at the time the program is elected, divided by the number of transfers
scheduled to be made.
If, on any transfer date, your value in the EQ/Alliance Money Market option is
equal to or less than the amount you have elected to have transferred, the
entire amount will be transferred. General dollar-cost averaging will then end.
You may change the transfer amount once each contract year, or cancel this
program at any time.
You may not elect dollar-cost averaging if you are participating in the
rebalancing program.
REBALANCING YOUR ACCOUNT VALUE
We currently offer a rebalancing program that you can use to automatically
reallocate your account value among the variable investment options. You must
tell us:
Transferring your money among investment options 25
(a) the percentage you want invested in each variable investment option (whole
percentages only), and
(b) how often you want the rebalancing to occur (quarterly, semiannually, or
annually).
While your rebalancing program is in effect, we will transfer amounts among
each variable investment option so that the percentage of your account value
that you specify is invested in each option at the end of each rebalancing
date. Your entire account value in the variable investment options must be
included in the rebalancing program.
- --------------------------------------------------------------------------------
Rebalancing does not assure a profit or protect against loss. You should
periodically review your allocation percentages as your needs change. You may
want to discuss the rebalancing program with your financial professional and/or
financial adviser before electing the program.
- --------------------------------------------------------------------------------
You may elect the rebalancing program at any time. To be eligible, you must
have at least $5,000 of account value in the variable investment options. You
may also change your allocation instructions or cancel the program at any time.
If you request a transfer while the rebalancing program is in effect, we will
process the transfer as requested; the rebalancing program will remain in
effect unless you request that it be cancelled in writing.
You may not elect the rebalancing program if you are participating in the
dollar-cost averaging program. Rebalancing is not available for amounts you
have allocated in the fixed maturity options.
26 Transferring your money among investment options
4. Accessing your money
- --------------------------------------------------------------------------------
WITHDRAWING YOUR ACCOUNT VALUE
You have several ways to withdraw your account value before annuity payments
begin. The table below shows the methods available under each type of contract.
More information follows the table. For the tax consequences of taking
withdrawals, see "Tax information" later in this Prospectus.
- --------------------------------------------------------------------------------
METHOD OF WITHDRAWAL
- --------------------------------------------------------------------------------
MINIMUM
CONTRACT LUMP SUM SYSTEMATIC DISTRIBUTION
- --------------------------------------------------------------------------------
NQ Yes Yes No
Traditional IRA Yes Yes Yes
Roth IRA Yes Yes No
- --------------------------------------------------------------------------------
LUMP SUM WITHDRAWALS
(All contracts)
You may take lump sum withdrawals from your account value at any time while the
annuitant is living and before annuity payments begin. The minimum amount you
may withdraw at any time is $300. If you request a withdrawal that leaves your
account value less than $500, we may treat it as a request to surrender the
contract for its cash value. See "Surrender of your contract to receive its
cash value" below.
Lump sum withdrawals in excess of the 10% free withdrawal amount may be subject
to a withdrawal charge (see "10% free withdrawal amount" in "Charges and
Expenses" later in this Prospectus).
SYSTEMATIC WITHDRAWALS
(All contracts)
You may take systematic withdrawals if you have at least $20,000 of account
value in the variable investment options. You may take systematic withdrawals
on a monthly or quarterly basis. The minimum amount you may take for each
withdrawal is $250.
We will make the withdrawals on any day of the month that you select as long as
it is not later than the 28th day of the month. If you do not select a date,
your withdrawals will be made on the first day of the month. A check for the
amount of the withdrawal will be mailed to you or, if you prefer, we will
electronically transfer the money to your checking account.
You may withdraw a fixed-dollar amount from the variable investment options.
You do not have to maintain a minimum amount. You may elect to have the amount
of the withdrawal subtracted from your account value in one of three ways:
(1) pro rata from more than one variable investment option (without using up
your total value in those options); or
(2) pro rata from more than one variable investment option (until your value in
those options is used up); or
(3) you may specify a dollar amount from only one variable investment option.
You can cancel the systematic withdrawal option at any time.
Amounts withdrawn in excess of the 10% free withdrawal amount may be subject to
a withdrawal charge.
LIFETIME MINIMUM DISTRIBUTION WITHDRAWALS
(Traditional IRA contracts -- See "Tax information" later in this Prospectus.)
We offer the minimum distribution withdrawal option to help you meet or exceed
lifetime required minimum distributions under federal income tax rules. You may
elect this option in the year in which you reach age 70-1/2 and have account
value in the variable investment options of at least $2,000. The minimum amount
we will pay out is $300, or if less, your account value. If your account value
is less than $500 after the withdrawal, we may terminate your contract and pay
you its cash value. You may elect the method you want us to use to calculate
your minimum distribution withdrawal from the choices we offer. Currently,
minimum distribution withdrawal payments will be made annually. We will
calculate your payment each year based on your account value at the end of each
prior calendar year, based on the method you choose. See "Required minimum
distributions" under "Individual Retirement Arrangements ("IRAs")" in "Tax
information" later in this Prospectus.
Currently, we do not impose a withdrawal charge on minimum distribution
withdrawals that are calculated based on the proposed revisions to the minimum
distribution rules and your EQUI-VEST(R) contract account value. (See "Required
minimum distributions" in "Tax information" later in this Prospectus.) The
minimum distribution withdrawal will be taken into account in determining if
any subsequent withdrawal taken in the same contract year exceeds the 10% free
withdrawal amount.
- --------------------------------------------------------------------------------
We will send to Traditional IRA owners a form outlining the minimum
distribution options available in the year you reach age 70-1/2 (if you have not
begun your annuity payments before that time).
- --------------------------------------------------------------------------------
HOW WITHDRAWALS ARE TAKEN FROM YOUR ACCOUNT VALUE
Unless you specify otherwise, we will subtract your withdrawals on a pro rata
basis from your value in the variable investment options. If there is
insufficient value or no value in the variable investment options, any
additional amount of the withdrawal required or the total amount of the
withdrawal will be withdrawn from the fixed maturity options in order of the
earliest maturity date(s). A market value adjustment may apply if withdrawals
are taken from the fixed maturity options.
AUTOMATIC DEPOSIT SERVICE
If you are receiving required minimum distribution payments from a Traditional
IRA contract, you may use our automatic deposit service.
Accessing your money 27
Under this service we will automatically deposit the required minimum
distribution payment from your traditional IRA contract directly into an
existing EQUI-VEST(R) NQ or Roth IRA or an existing EQUI-VEST(R) Express(SM) NQ
or Roth IRA contract according to your allocation instructions. Please note
that you must have compensation to make regular contributions to Roth IRAs. See
"Tax information" later in this Prospectus.
SURRENDER OF YOUR CONTRACT TO RECEIVE ITS CASH VALUE
You may surrender your contract to receive its cash value at any time while the
annuitant is living and before you begin to receive annuity payments. For a
surrender to be effective, we must receive your written request and your
contract at our processing office. We will determine your cash value on the
date we receive the required information. All benefits under the contract will
terminate as of that date.
You may receive your cash value in a single sum payment or apply it to one or
more of the annuity payout options. See "Your annuity payout options" below. We
will usually pay the cash value within seven calendar days, but we may delay
payment as described in "When to expect payments" below. For the tax
consequences of surrenders, see "Tax information" later in this Prospectus.
TERMINATION
We may terminate your contract and pay you the cash value if:
(1) your account value is less than $500 and you have not made contributions to
your contract for a period of three years; or
(2) you request a lump sum withdrawal that reduces your account value to an
amount less than $500; or
(3) you have not made any contributions within 120 days from your contract date.
WHEN TO EXPECT PAYMENTS
Generally, we will fulfill requests for payments out of the variable investment
options within seven calendar days after the date of the transaction to which
the request relates. These transactions may include applying proceeds to a
variable annuity payout option, payment of a death benefit, payment of any
amount you withdraw (less any withdrawal charge) and, upon surrender or
termination, payment of the cash value. We may postpone such payments or
applying proceeds for any period during which:
(1) the New York Stock Exchange is closed or restricts trading,
(2) sales of securities or determination of the fair value of a variable
investment option's assets is not reasonably practicable because of an
emergency, or
(3) the SEC, by order, permits us to defer payment to protect people remaining
in the variable investment options.
We can defer payment of any portion of your values in the fixed maturity
options (other than for death benefits) for up to six months while you are
living. We also may defer payments for a reasonable amount of time (not to
exceed 15 days) while we are waiting for a contribution check to clear.
All payments are made by check and are mailed to you (or the payee named in a
tax-free exchange) by U.S. mail, unless you request that we use an express
delivery service at your expense.
YOUR ANNUITY PAYOUT OPTIONS
EQUI-VEST(R) Express(SM) offers you several choices of annuity payout options.
Some enable you to receive fixed annuity payments and others enable you to
receive variable annuity payments.
You can choose from among the annuity payout options listed below. Restrictions
may apply, depending on the type of contract you own and the annuitant's age at
contract issue.
- --------------------------------------------------------------------------------
Fixed annuity payout options o Life annuity
o Life annuity with period
certain
o Life annuity with refund
certain
o Period certain annuity
- --------------------------------------------------------------------------------
Variable Immediate Annuity payout o Life annuity (not available in
options New York)
o Life annuity with period
certain
- --------------------------------------------------------------------------------
o Life annuity: An annuity that guarantees payments for the rest of the
annuitant's life. Payments end with the last monthly payment before the
annuitant's death. Because there is no continuation of benefits following
the annuitant's death with this payout option, it provides the highest
monthly payment of any of the life annuity options, so long as the annuitant
is living.
o Life annuity with period certain: An annuity that guarantees payments for
the rest of the annuitant's life. If the annuitant dies before the end of a
selected period of time ("period certain"), payments continue to the
beneficiary for the balance of the period certain. The period certain cannot
extend beyond the annuitant's life expectancy or the joint life expectancy
of you and your spouse. A life annuity with period certain is the form of
annuity under the contracts that you will receive if you do not elect a
different payout option. In this case the period certain will be based on
the annuitant's age and will not exceed 10 years or the annuitant's life
expectancy.
o Life annuity with refund certain: An annuity that guarantees payments for
the rest of the annuitant's life. If the annuitant dies before the amount
applied to purchase the annuity option has been recovered, payments to the
beneficiary will continue until that amount has been recovered. This payout
option is available only as a fixed annuity.
o Period certain annuity: An annuity that guarantees payments for a specific
period of time, usually 5, 10, 15, or 20 years. This guarantee period may
not exceed the annuitant's life expectancy. This option does not guarantee
payments for the rest of the annuitant's life. It does not permit any
repayment of the unpaid principal, so you cannot elect to receive part of
the payments as a single sum payment with the rest paid in monthly annuity
payments. This payout option is available only as a fixed annuity.
28 Accessing your money
The life annuity, life annuity with period certain, and life annuity with
refund certain payout options are available on a single life or joint and
survivor life basis. The joint and survivor life annuity guarantees payments
for the rest of the annuitant's life and, after the annuitant's death, payments
continue to the survivor. We may offer other payout options not outlined here.
Your financial professional can provide details.
FIXED ANNUITY PAYOUT OPTIONS
With fixed annuities, we guarantee fixed annuity payments that will be based
either on the tables of guaranteed annuity payments in your contract or on our
then current annuity rates, whichever is more favorable for you.
VARIABLE IMMEDIATE ANNUITY PAYOUT OPTIONS
Variable Immediate Annuities are described in a separate prospectus that is
available from your financial professional. Before you select a Variable
Immediate Annuity payout option, you should read the prospectus which contains
important information that you should know.
Variable annuities may be funded through your choice of variable investment
options investing in portfolios of EQ Advisors Trust. The contract also offers
a fixed annuity option that can be elected in combination with the variable
annuity payout options. The amount of each variable annuity payment will
fluctuate, depending upon the performance of the variable investment options,
and whether the actual rate of investment return is higher or lower than an
assumed base rate.
We may offer other payout options not outlined here. Your financial
professional can provide details.
THE AMOUNT APPLIED TO PURCHASE AN ANNUITY PAYOUT OPTION
The amount applied to purchase an annuity payout option varies, depending on
the payout option that you choose, and the timing of your purchase as it
relates to any withdrawal charges or market value adjustments.
If amounts in a fixed maturity option are used to purchase any annuity payout
option, prior to the maturity date, a market value adjustment will apply.
For the fixed annuity payout options and variable annuity payout options, no
withdrawal charge is imposed if you select a life annuity, life annuity with
period certain or life annuity with refund certain.
For the fixed annuity payout option, the withdrawal charge applicable is
imposed if you select a period certain. Any applicable withdrawal charge will
be waived for Traditional IRA and Roth IRA contracts, if the period certain is
more than 10 years.
SELECTING AN ANNUITY PAYOUT OPTION
When you select a payout option, we will issue you a separate written agreement
confirming your right to receive annuity payments. We require you to return
your contract before annuity payments begin. Unless you choose a different
payout option, we will pay annuity payments under a life annuity with a period
certain of 10 years. You choose whether these payments will be fixed or
variable. The contract owner and annuitant must meet the issue age and payment
requirements.
You can choose the date annuity payments are to begin. You can change the date
your annuity payments are to begin anytime before that date as long as you do
not choose a date later than the 28th day of any month. Also, that date may not
be later than the contract date anniversary that follows the annuitant's 90th
birthday. This may be different in some states.
Before your annuity payments are to begin, we will notify you by letter that
the annuity payout options are available. Once you have selected a payout
option and payments have begun, no change can be made other than transfers (if
permitted in the future) among the variable investment options if a variable
annuity is selected.
The amount of the annuity payments will depend on:
(1) the amount applied to purchase the annuity;
(2) the type of annuity chosen, and whether it is fixed or variable. If you
choose a variable annuity, we will use an assumed base rate of 5% to
calculate the level of payments. However, in states where that rate is not
permitted the assumed base rate will be 3-1/2%. We provide information about
the assumed base rate in the SAI;
(3) in the case of a life annuity, the annuitant's age (or the annuitant's and
joint annuitant's ages); and
(4) in certain instances, the sex of the annuitant(s).
In no event will you ever receive payments under a fixed option or an initial
payment under a variable option of less than the minimum amounts guaranteed by
the contract.
If, at the time you elect a payout option, the amount to be applied is less
than $2,000 or the initial payment under the form elected is less than $20
monthly, we reserve the right to pay the account value in a single sum rather
than as payments under the payout option chosen.
Accessing your money 29
5. Charges and expenses
- --------------------------------------------------------------------------------
CHARGES THAT EQUITABLE LIFE DEDUCTS
We deduct the following charges each day from the net assets of each variable
investment option. These charges are reflected in the unit values of each
variable investment option:
o A mortality and expense risks charge
o A charge for other expenses
We deduct the following charges from your account value. When we deduct these
charges from your variable investment options, we reduce the number of units
credited to your contract:
o on the last day of the contract year -- an annual administrative charge, if
applicable
o charge for third-party transfer or exchange
o at the time you make certain withdrawals or surrender your contract, or your
contract is terminated -- a withdrawal charge
o at the time annuity payments are to begin -- charges designed to approximate
certain taxes that may be imposed on us, such as premium taxes in your
state. An annuity administrative fee may also apply
More information about these charges appears below. We will not increase these
charges for the life of your contract, except as noted. We may reduce certain
charges under group or sponsored arrangements. See "Group or sponsored
arrangements" below.
To help with your retirement planning, we may offer other annuities with
different charges, benefits and features. Please contact your financial
professional for more information.
CHARGES UNDER THE CONTRACTS
MORTALITY AND EXPENSE RISKS CHARGE
We deduct a daily charge from the net assets in each variable investment option
to compensate us for mortality and expense risks, including the death benefit.
The daily charge is equivalent to an annual rate of 0.70% of the net assets in
each variable investment option. We reserve the right under the contract to
increase this charge to 1.75%.
The mortality risk we assume is the risk that annuitants as a group will live
for a longer time than our actuarial tables predict. If that happens, we would
be paying more in annuity benefits than we planned. We also assume a risk that
the mortality assumptions reflected in our guaranteed annuity payment tables,
shown in each contract, will differ from actual mortality experience. We may
change the actuarial basis for our guaranteed annuity payment tables, but only
for new contributions and only at five year intervals from the contract date.
Lastly, we assume a mortality risk to the extent that at the time of death, the
death benefit exceeds the cash value of the contract. The expense risk we
assume is the risk that it will cost us more to issue and administer the
contracts than we expect.
To the extent that the mortality and expense risk charges are not needed to
cover the actual expenses incurred, they may be considered an indirect
reimbursement for certain sales and promotional expenses relating to the
contracts.
CHARGE FOR OTHER EXPENSES
We deduct this daily charge from the net assets in each variable investment
option. This charge, together with the annual administrative charge described
below, is for providing administrative and financial accounting services under
the contracts. The daily charge is equivalent to an annual rate of 0.25% of net
assets in each variable investment option.
The combined charge for mortality and expense risks and for other expenses is
guaranteed not to exceed a total annual rate of 2.00%.
ANNUAL ADMINISTRATIVE CHARGE
We deduct an administrative charge from your account value on the last business
day of each contract year. We will deduct a pro rata portion of the charge if
you surrender your contract, elect an annuity payout option, or the annuitant
dies during the contract year. We deduct the charge if your account value on
the last day of the contract year is less than $25,000 under NQ contracts and
$20,000 under IRA contracts. If your account value on such date is $25,000 or
more for NQ ($20,000 or more for IRA) contracts, we do not deduct the charge.
During the first two contract years, the charge is equal to $30 or, if less, 2%
of your current account value. The charge is $30 for contract years three and
later. We may increase this charge if our administrative costs rise, but the
charge will never exceed $65 annually.
The charge is deducted pro rata from the variable investment options. If those
amounts are insufficient, we will make up the required amounts from the fixed
maturity options to the extent you have value in those options.
We currently waive the annual administrative charge that would otherwise be
deducted in the next contract year under any individually owned EQUI-VEST(R)
contract/certificate having an account value that, when combined with the
account value of other EQUI-VEST(R) contracts/certificates owned by the same
person, exceeds $100,000 in the aggregate (as determined in February of each
year). This does not apply to EQUI-VEST(R) contracts/certificates owned by
different members of the same household. We may change or discontinue this
practice at any time without prior notice.
CHARGE FOR THIRD-PARTY TRANSFER OR EXCHANGE
We impose a charge for making a direct transfer of amounts from your contract
to a third party, such as in the case of a trustee-to-trustee transfer for an
IRA contract, or if you request that your contract be exchanged for a contract
issued by another insurance company. In either case, we will deduct from your
account value any withdrawal
30 Charges and expenses
charge that applies and a charge of $25 for each direct transfer or exchange.
We reserve the right to increase this charge to a maximum of $65.
WITHDRAWAL CHARGE
A withdrawal charge may apply in three circumstances: (1) you make one or more
withdrawals during a contract year; (2) you surrender your contract to receive
its cash value; or (3) we terminate your contract. The amount of the charge
will depend on whether the free withdrawal amount applies, and the availability
of one or more exceptions.
The withdrawal charge equals a percentage of the contributions withdrawn. The
percentage that applies depends on how long each contribution has been invested
in the contract. We determine the withdrawal charge separately for each
contribution according to the following table:
- --------------------------------------------------------------------------------
CONTRACT YEAR
- --------------------------------------------------------------------------------
1 2 3 4 5 6 7 8+
- --------------------------------------------------------------------------------
Percentage of
contribution 7% 6% 5% 4% 3% 2% 1% 0%
- --------------------------------------------------------------------------------
For purposes of calculating the withdrawal charge, we treat the contract year
in which we receive a contribution as "contract year 1." Amounts withdrawn up
to the free withdrawal amount are not considered withdrawal of any
contribution. We also treat contributions that have been invested the longest
as being withdrawn first. We treat contributions as withdrawn before earnings
for purposes of calculating the withdrawal charge. However, federal income tax
rules treat earnings under most NQ contracts as withdrawn first. See "Tax
information" later in this Prospectus.
In order to give you the exact dollar amount of the withdrawal you request, we
deduct the amount of the withdrawal and the amount of the withdrawal charge
from your account value. Any amount deducted to pay withdrawal charges is also
subject to that same withdrawal charge percentage. We deduct the withdrawal
amount and the withdrawal charge pro rata from the variable investment options.
If those amounts are insufficient, we will make up the required amounts from
the fixed maturity options in order of the earliest maturities first. If we
deduct all or a portion of the withdrawal charge from the fixed maturity
options, a market value adjustment may apply. See "About our fixed maturity
options" in "More information" later in this Prospectus.
The withdrawal charge does not apply in the circumstances described below.
10% FREE WITHDRAWAL AMOUNT. Each contract year you can withdraw up to 10% of
your account value without paying a withdrawal charge. The 10% free withdrawal
amount is determined using your account value at the time you request a
withdrawal, minus any other withdrawals made during the contract year.
DEATH OF THE ANNUITANT. The withdrawal charge does not apply if the annuitant
dies and a death benefit is payable to the beneficiary.
CHARGES FOR STATE PREMIUM AND OTHER APPLICABLE TAXES
We deduct a charge designed to approximate certain taxes that may be imposed on
us, such as premium taxes in your state. Generally, we deduct the charge from
the amount applied to provide an annuity payout option. The current tax charge
that might be imposed varies by state and ranges from 0% to 3.5%. (The rate is
1% in Puerto Rico.)
VARIABLE IMMEDIATE ANNUITY PAYOUT OPTION ADMINISTRATIVE FEE
We deduct a fee of up to $350 from the amount to be applied to the Variable
Immediate Annuity payout option.
CHARGES THAT THE TRUSTS DEDUCT
The Trusts deduct charges for the following types of fees and expenses:
o investment advisory fees ranging from 0.25% to 1.20%.
o 12b-1 fees of 0.25%.
o operating expenses, such as trustees' fees, independent auditors' fees,
legal counsel fees, administrative service fees, custodian fees, and
liability insurance.
o investment-related expenses, such as brokerage commissions.
These charges are reflected in the daily share price of each portfolio. Since
shares of each Trust are purchased at their net asset value, these fees and
expenses are, in effect, passed on to the variable investment options and are
reflected in their unit values. For more information about these charges,
please refer to the attached prospectuses for each Trust.
GROUP OR SPONSORED ARRANGEMENTS
For certain group or sponsored arrangements, we may reduce the withdrawal
charge or the mortality and expense risks charge, or change the minimum
contribution requirements. We also may change the minimum death benefit or
offer variable investment options that invest in shares of either Trust that
are not subject to the 12b-1 fee. Group arrangements include those in which a
trustee or an employer, for example, purchases contracts covering a group of
individuals on a group basis. Group arrangements are not available for
traditional IRA and Roth IRA contracts. Sponsored arrangements include those in
which an employer allows us to sell contracts to its employees or retirees on
an individual basis.
Our costs for sales, administration, and mortality generally vary with the size
and stability of the group or sponsoring organization, among other factors. We
take all these factors into account when reducing charges. To qualify for
reduced charges, a group or sponsored arrangement must meet certain
requirements, such as requirements for size and number of years in existence.
Group or sponsored arrangements that have been set up solely to buy contracts
or that have been in existence less than six months will not qualify for
reduced charges.
We also may establish different rates to maturity for the fixed maturity
options under different classes of contracts for group or sponsored
arrangements.
We will make these and any similar reductions according to our rules in effect
when we approve a contract for issue. We may change these rules from time to
time. Any variation will reflect differences in costs or services and will not
be unfairly discriminatory.
Group or sponsored arrangements may be governed by federal income tax rules,
the Employee Retirement Income Security Act of 1974, or
Charges and expenses 31
both. We make no representations with regard to the impact of these and other
applicable laws on such programs. We recommend that employers, trustees, and
others purchasing or making contracts available for purchase under such
programs seek the advice of their own legal and benefits advisers.
OTHER DISTRIBUTION ARRANGEMENTS
We may reduce or eliminate charges when sales are made in a manner that results
in savings of sales and administrative expenses, such as sales through persons
who are compensated by clients for recommending investments and who receive no
commission or reduced commissions in connection with the sale of the contracts.
We will not permit a reduction or elimination of charges where it will be
unfairly discriminatory.
32 Charges and expenses
6. Payment of death benefit
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YOUR BENEFICIARY AND PAYMENT OF BENEFIT
You designate your beneficiary when you apply for your contract. You may change
your beneficiary at any time. The change will be effective on the date the
written request for the change is received in our processing office. We are not
responsible for any beneficiary change request that we do not receive. We will
send you a written confirmation when we receive your request. Under jointly
owned contracts, the surviving owner is considered the beneficiary, and will
take the place of any other beneficiary.
The death benefit is equal to greater of (i) the account value (without
adjustment for any otherwise applicable negative market value adjustment) as of
the date we receive satisfactory proof of the annuitant's death, any required
instructions for the method of payment, information and forms necessary to
effect payment or (ii) the "minimum death benefit." The minimum death benefit
is equal to your total contributions, less withdrawals and any withdrawal
charges, and any taxes that apply.
If you have transferred the value of another annuity contract that we issue to
your EQUI-VEST(R) Express(SM) contract, the value of the other contract's
minimum death benefit, calculated as of the time of the transfer, will be
included in the total contributions for the purpose of calculating the minimum
death benefit.
EFFECT OF THE ANNUITANT'S DEATH
If the annuitant dies before the annuity payments begin, we will pay the death
benefit to your beneficiary.
Generally, the death of the annuitant terminates the contract. However, if you
are both the owner and the annuitant and your spouse is the sole primary
beneficiary or the joint owner, the contract can be continued as follows:
SUCCESSOR OWNER AND ANNUITANT. For all contracts, your spouse can elect upon
your death to continue the contract as the owner/annuitant and no death benefit
is payable until the surviving spouse's death.
If your surviving spouse decides to continue the contract, then as of the date
we receive satisfactory proof of death, any required instructions, information
and forms necessary to effect the successor owner and annuitant feature, we
will increase the account value to equal your minimum death benefit if such
death benefit is greater than such account value. The increase in the account
value will be allocated to the investment options according to the allocation
percentages we have on file for your contract. Thereafter, withdrawal charges
will no longer apply to contributions made before your death. Withdrawal
charges will apply if additional contributions are made. These additional
contributions will be withdrawn only after all other amounts have been
withdrawn. The minimum death benefit will continue to apply.
Also, for all types of IRA contracts, a beneficiary may be able to have limited
ownership as discussed in "Beneficiary continuation option" below.
WHEN AN NQ CONTRACT OWNER DIES BEFORE THE ANNUITANT
Under certain conditions, the owner changes after the original owner's death
for purposes of receiving federal tax law required distributions from the
contract. When you are not the annuitant under an NQ contract and you die
before annuity payments begin, unless you specify otherwise, we will
automatically make the beneficiary you name to receive the death benefit upon
the annuitant's death your successor owner. If you do not want this beneficiary
also to be the successor owner, you should name a specific successor owner. You
may name a successor owner at any time by sending satisfactory notice to our
processing office. If the contract is jointly owned and the first owner to die
is not the annuitant, the surviving owner becomes the sole contract owner. This
person will be considered the successor owner for purposes of the distribution
rules described in this section.
Unless the surviving spouse of the owner who has died (or in the case of a
joint ownership situation, the surviving spouse of the first owner to die) is
the successor owner for this purpose, the entire interest in the contract must
be distributed under the following rules:
o the cash value of the contract must be fully paid to the successor owner (new
owner) within five years after your death (or in a joint ownership
situation, the death of the first owner to die).
o the successor owner may instead elect to receive the cash value as a life
annuity (or payments for a period certain of not longer than the new
owner's life expectancy). Payments must begin within one year after the
non-annuitant owner's death. Unless this alternative is elected, we will
pay any cash value five years after your death (or the death of the first
owner to die).
If the surviving spouse is the successor owner or joint owner, the spouse may
elect to continue the contract. No distributions are required as long as the
surviving spouse and annuitant are living.
HOW DEATH BENEFIT PAYMENT IS MADE
We will pay the death benefit to the beneficiary in the form of the annuity
payout option you have chosen. If you have not chosen an annuity payout option
as of the time of the annuitant's death, the beneficiary will receive the death
benefit in a single sum. However, subject to any exceptions in the contract,
our rules and any applicable requirements under federal income tax rules, the
beneficiary may elect to apply the death benefit to one or more annuity payout
options we offer at the time. See "Your annuity payout options" in "Accessing
your money" earlier in this Prospectus. Please note that if you are both the
contract owner and the annuitant, you may elect only a life annuity or any
annuity payout option chosen may not extend beyond the life expectancy of the
beneficiary.
Payment of death benefit 33
Single sum payments generally are paid through the Equitable Life Access
Account(TM), an interest bearing account with check writing privileges. The
Equitable Life Access Account(TM) is part of Equitable Life's general account.
Beneficiaries have immediate access to the proceeds by writing a check on the
account. We pay interest from the date the single sum is deposited into the
Access Account(TM) until the account is closed.
BENEFICIARY CONTINUATION OPTION
This feature permits a beneficiary, upon your death, to maintain a contract in
your name and receive distributions under the contract instead of receiving the
death benefit in a single sum. We make this option available to beneficiaries
under traditional IRA and Roth IRA contracts. This feature is only available if
the beneficiary is an individual. Certain trusts with only individual
beneficiaries will be treated as individuals.
The minimum amount that is required in order to elect the beneficiary
continuation option is $5,000 for each beneficiary. This feature must be
elected within 9 months following the date we receive proof of your death and
before any other inconsistent election is made, however, in no event will we
accept a beneficiary continuation option election if such election is received
after December 15th of the calendar year following your death. Beneficiaries
who do not make a timely election will not be eligible for the beneficiary
continuation option. If the election is made, then as of the date we receive
satisfactory proof of death, any required instructions, information and forms
necessary to effect the beneficiary continuation option feature, we will
increase the account value to equal the minimum death benefit if such death
benefit is greater than such account value.
Generally, payments will be made once a year to the beneficiary over the
beneficiary's life expectancy (determined in the calendar year after your
death, and determined on a term certain basis). These payments must begin no
later than December 31st of the calendar year after the year of your death.
However, if you die before your Required Beginning Date for Required Minimum
Distributions, the beneficiary may take withdrawals as desired, but the entire
account value must be fully withdrawn by December 31st of the 5th calendar year
after your death.
Under the beneficiary continuation option:
o The contract continues in your name for the benefit of your beneficiary.
o The beneficiary may make transfers among the investment options but no
additional contributions will be permitted.
o The minimum death benefit provision will no longer be in effect.
o The beneficiary may choose at any time to withdraw all or a portion of the
account value and no withdrawal charges will apply. Any partial withdrawal
must be at least $300.
o Your beneficiary will have the right to name a beneficiary to receive any
remaining interest in the contract.
o Upon the death of your beneficiary, the beneficiary he or she has named has
the option to either continue taking minimum distributions based on the
remaining life expectancy of the deceased beneficiary or to receive any
remaining interest in the contract in a lump sum. The option elected will be
processed when we receive satisfactory proof of death, any required
instructions for the method of payment and any required information and
forms necessary to effect payment.
34 Payment of death benefit
7. Tax information
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OVERVIEW
In this part of the prospectus, we discuss the current federal income tax rules
that generally apply to EQUI-VEST(R) Express(SM) contracts owned by United
States taxpayers. The tax rules can differ, depending on the type of contract,
whether NQ, traditional IRA or Roth IRA. Therefore, we discuss the tax aspects
of each type of contract separately.
Federal income tax rules include the United States laws in the Internal Revenue
Code, and Treasury Department Regulations and Internal Revenue Service ("IRS")
interpretations of the Internal Revenue Code. These tax rules may change. We
cannot predict whether, when, or how these rules could change. Any change could
affect contracts purchased before the change.
We cannot provide detailed information on all tax aspects of the contracts.
Moreover, the tax aspects that apply to a particular person's contract may vary
depending on the facts applicable to that person. We do not discuss state
income and other state taxes, federal income tax and withholding rules for
non-U.S. taxpayers, or federal gift and estate taxes. Transfers of the
contract, rights under the contract, or payments under the contract may be
subject to gift or estate taxes. You should not rely only on this document, but
should consult your tax adviser before your purchase.
President Bush signed the Economic Growth and Tax Relief Reconciliation Act of
2001 ("EGTRRA") on June 7, 2001. Many of the provisions of EGTRRA became
effective on January 1, 2002 and are phased in during the first decade of the
twenty-first century. In the absence of future legislation, all of the
amendments made by EGTRRA will no longer apply after December 31, 2010, and the
law in effect in 2001 will apply again. In general, EGTRRA liberalizes
contributions that can be made to all types of tax-favored retirement plans. In
addition to increasing amounts that can be contributed and permitting
individuals over age 50 to make additional contributions, EGTRRA also permits
rollover contributions to be made between different types of tax-favored
retirement plans. Please discuss with your tax advisor how EGTRRA affects your
personal financial situation.
BUYING A CONTRACT TO FUND A RETIREMENT ARRANGEMENT
Generally, there are two types of funding vehicles that are available for
Individual Retirement Arrangements ("IRAs"): an IRA annuity contract such as
this one, or an IRA custodial or other qualified account. How these arrangements
work, including special rules applicable to each, are described in the specific
sections for each type of arrangement, below. You should be aware that the
funding vehicle for a qualified arrangement does not provide any tax deferral
benefit beyond that already provided by the Code for all permissible funding
vehicles. Before choosing an annuity contract, therefore, you should consider
the annuity's features and benefits, such as the guaranteed minimum death
benefit, selection of variable investment options and fixed maturity options and
choices of payout options of EQUI-VEST(R) Express(SM), as well as the features
and benefits of other permissible funding vehicles and the relative costs of
annuities and other such arrangements. You should be aware that cost may vary
depending on the features and benefits made available and the charges and
expenses of the portfolios you elect.
TRANSFERS AMONG INVESTMENT OPTIONS
You can make transfers among investment options inside the contract without
triggering taxable income.
TAXATION OF NONQUALIFIED ANNUITIES
CONTRIBUTIONS
You may not deduct the amount of your contributions to a nonqualified annuity
contract.
CONTRACT EARNINGS
Generally, you are not taxed on contract earnings until you receive a
distribution from your contract, whether as a withdrawal or as an annuity
payment. However, earnings are taxable, even without a distribution:
o if a contract fails investment diversification requirements as specified in
federal income tax rules (these rules are based on or are similar to those
specified for mutual funds under securities laws);
o if you transfer a contract, for example, as a gift to someone other than
your spouse (or former spouse);
o if you use a contract as security for a loan (in this case, the amount
pledged will be treated as a distribution); and
o if the owner is other than an individual (such as a corporation,
partnership, trust, or other non-natural person).
All nonqualified deferred annuity contracts that Equitable Life and its
affiliates issue to you during the same calendar year are linked together and
treated as one contract for calculating the taxable amount of any distribution
from any of those contracts.
ANNUITY PAYMENTS
Once annuity payments begin, a portion of each payment is taxable as ordinary
income. You get back the remaining portion without paying taxes on it. This is
your "investment in the contract." Generally, your investment in the contract
equals the contributions you made, less any amounts you previously withdrew
that were not taxable.
For fixed annuity payments, the tax-free portion of each payment is determined
by (1) dividing your investment in the contract by the total amount you are
expected to receive out of the contract, and (2) multiplying the result by the
amount of the payment. For variable annuity
Tax information 35
payments, your tax-free portion of each payment is your investment in the
contract divided by the number of expected payments.
Once you have received the amount of your investment in the contract, all
payments after that are fully taxable. If payments under a life annuity stop
because the annuitant dies, there is an income tax deduction for any
unrecovered investment in the contract.
PAYMENTS MADE BEFORE ANNUITY PAYMENTS BEGIN
If you make withdrawals before annuity payments begin under your contract, they
are taxable to you as ordinary income if there are earnings in the contract.
Generally, earnings are your account value less your investment in the
contract. If you withdraw an amount which is more than the earnings in the
contract as of the date of the withdrawal, the balance of the distribution is
treated as a return of your investment in the contract and is not taxable.
CONTRACTS PURCHASED THROUGH EXCHANGES
You may purchase your NQ contract through an exchange of another contract.
Normally, exchanges of contracts are taxable events. The exchange will not be
taxable under Section 1035 of the Internal Revenue Code if:
o the contract that is the source of the funds you are using to purchase the
NQ contract is another nonqualified deferred annuity contract (or life
insurance or endowment contract).
o the owner and the annuitant are the same under the source contract and the
EQUI-VEST(R) Express(SM) NQ contract. If you are using a life insurance or
endowment contract the owner and the insured must be the same on both sides
of the exchange transaction.
The tax basis, also referred to as your investment in your contract of the
source contract carries over to the EQUI-VEST(R) Express(SM) NQ contract.
A recent case permitted an owner to direct the proceeds of a partial withdrawal
from one nonqualified deferred annuity contract to a different insurer to
purchase a new nonqualified deferred annuity contract on a tax-deferred basis.
Special forms, agreements between the carriers, and provision of cost basis
information may be required to process this type of exchange.
SURRENDERS
If you surrender or cancel the contract, the distribution is taxable as
ordinary income (not capital gain) to the extent it exceeds your investment in
the contract.
DEATH BENEFIT PAYMENTS MADE TO A BENEFICIARY AFTER YOUR DEATH
For the rules applicable to death benefits, see "Payment of death benefit"
earlier in this Prospectus. The tax treatment of a death benefit taken as a
single sum is generally the same as the tax treatment of a withdrawal from or
surrender of your contract. The tax treatment of a death benefit taken as
annuity payments is generally the same as the tax treatment of annuity payments
under your contract.
EARLY DISTRIBUTION PENALTY TAX
If you take distributions before you are age 59-1/2 a penalty tax of 10% of the
taxable portion of your distribution applies in addition to the income tax.
Some of the available exceptions to the pre-age 59-1/2 penalty tax include
distributions made:
o on or after your death; or
o because you are disabled (special federal income tax definition); or
o in the form of substantially equal periodic annuity payments for your life
(or life expectancy) or the joint lives (or joint life expectancy) of you
and a beneficiary.
OTHER INFORMATION
The IRS has stated that you will be considered the owner of the assets in the
separate account if you possess incidents of ownership in those assets, such as
the ability to exercise investment control over the assets. The Treasury
Department has the authority to issue guidelines prescribing the circumstances
in which your ability to direct your investment to a particular Portfolio
within a separate account may cause you, rather than the insurance company, to
be treated as the owner of the portfolio shares attributable to your
nonqualified annuity contract. If you were to be considered the owner of the
underlying shares, income and gains attributable to such portfolio shares would
be currently included in your gross income for federal income tax purposes.
Incidents of investment control could include among other items, the number of
investment options available under a contract and/or the frequency of transfers
available under the contract. In connection with the issuance of regulations
concerning investment diversification in 1986, the Treasury Department
announced that the diversification regulations did not provide guidance on
investor control but that guidance would be issued in the form of regulations
or rulings. As of the date of this prospectus, no such guidance has been
issued. It is not known whether such guidelines, if in fact issued, would have
retroactive adverse effect on existing contracts. We cannot provide assurance
as to the terms or scope of any future guidance nor any assurance that such
guidance would not be imposed on a retroactive basis to contracts issued under
this prospectus. We reserve the right to modify the contract as necessary to
attempt to prevent you from being considered the owner of the assets of
Separate Account A for tax purposes.
SPECIAL RULES FOR NQ CONTRACTS ISSUED IN PUERTO RICO
Under current law we treat income from NQ contracts as U.S. source. A Puerto
Rico resident is subject to U.S. taxation on such U.S. source income. Only
Puerto Rico source income of Puerto Rico residents is excludable from U.S.
taxation. Income from NQ contracts is also subject to Puerto Rico tax. The
calculation of the taxable portion of amounts distributed from a contract may
differ in the two jurisdictions. Therefore, you might have to file both U.S.
and Puerto Rico tax returns, showing different amounts of income from the
contract for each tax return. Puerto Rico generally provides a credit against
Puerto Rico tax for U.S. tax paid. Depending on your personal situation and the
timing of the different tax liabilities, you may not be able to take full
advantage of this credit.
INDIVIDUAL RETIREMENT ARRANGEMENTS ("IRAS")
GENERAL
"IRA" stands for individual retirement arrangement. There are two basic types
of such arrangements, individual retirement accounts and
36 Tax information
individual retirement annuities. In an individual retirement account, a trustee
or custodian holds the assets funding the account for the benefit of the IRA
owner. The assets typically include mutual funds and/or individual stocks and
securities in a custodial account, and bank certificates of deposit in a
trusteed account. In an individual retirement annuity, an insurance company
issues an annuity contract that serves as the IRA.
There are two basic types of IRAs, as follows:
o Traditional IRAs, typically funded on a pre-tax basis including SEP-IRAs and
SIMPLE-IRAs, issued and funded in connection with employer-sponsored
retirement plans.
o Roth IRAs, first available in 1998, funded on an after-tax basis.
EQUI-VEST(R) Express(SM) Roth IRA is a Roth IRA.
Regardless of the type of IRA, your ownership interest in the IRA cannot be
forfeited. You or your beneficiaries who survive you are the only ones who can
receive the IRA's benefits or payments. All types of IRAs qualify for tax
deferral, regardless of the funding vehicle selected.
You can hold your IRA assets in as many different accounts and annuities as you
would like, as long as you meet the rules for setting up and making
contributions to IRAs. However, if you own multiple IRAs, you may be required
to combine IRA values or contributions for tax purposes. For further
information about individual retirement arrangements, you can read Internal
Revenue Service Publication 590 ("Individual Retirement Arrangements (IRAs)").
This publication is usually updated annually, and can be obtained from any IRS
district office or the IRS Web site (www.irs.gov).
Equitable Life designs its traditional IRA contracts to qualify as "individual
retirement annuities" under Section 408(b) of the Internal Revenue Code. This
prospectus contains the information that the IRS requires you to have before
you purchase an IRA. This section of the prospectus covers some of the special
tax rules that apply to IRAs. The next section covers Roth IRAs. Education IRAs
are not discussed in this prospectus because they are not available in
individual retirement annuity form.
The EQUI-VEST(R) Express(SM) traditional and Roth IRA contracts have been
approved by the IRS as to form for use as a traditional IRA and Roth IRA,
respectively. This IRS approval is a determination only as to the form of the
annuity. It does not represent a determination of the merits of the annuity as
an investment. The IRS approval does not address every feature possibly
available under the EQUI-VEST(R) Express(SM) traditional and Roth IRA contracts.
Because the IRS has announced that issuers of formally approved IRAs must amend
their contracts to reflect recent tax law changes and resubmit the amended
contracts to retain such formal approval, Equitable intends to comply with such
requirement during 2002.
CANCELLATION
You can cancel any version of the EQUI-VEST(R) Express(SM) IRA contract
(traditional IRA or Roth IRA) by following the directions under "Your right to
cancel within a certain number of days" in "Contract features and benefits"
earlier in this Prospectus. You can cancel an EQUI-VEST(R) Express(SM) Roth IRA
contract issued as a result of a full or partial conversion of any EQUI-VEST(R)
traditional IRA contract by following the instructions in the "EQUI-VEST(R)
Roth IRA Re-Characterization Form." The form is available from our processing
office or your financial professional. If you cancel a traditional IRA, or Roth
IRA contract, we may have to withhold tax, and we must report the transaction
to the IRS. A contract cancellation could have an unfavorable tax impact.
TRADITIONAL INDIVIDUAL RETIREMENT ANNUITIES
(TRADITIONAL IRAS)
CONTRIBUTIONS TO TRADITIONAL IRAS. Individuals may make three different types
of contributions to a traditional IRA:
o regular contributions out of earned income or compensation; or
o tax-free "rollover" contributions; or
o direct custodian-to-custodian transfers from other traditional IRAs ("direct
transfers").
REGULAR CONTRIBUTIONS TO TRADITIONAL IRAS
LIMITS ON CONTRIBUTIONS. Generally, $3,000 is the maximum amount that you may
contribute to all IRAs (including Roth IRAs) for 2002. When your earnings are
below $3,000, your earned income or compensation for the year is the most you
can contribute. This limit does not apply to rollover contributions or direct
custodian-to-custodian transfers into a traditional IRA. You cannot make
regular traditional IRA contributions for the tax year in which you reach age
70-1/2 or any tax year after that.
If you were born from July 1, 1931 to December 31, 1952, you may be eligible to
make an additional "catch up contribution" of up to $500 to your traditional
IRA for 2002.
SPECIAL RULES FOR SPOUSES. If you are married and file a joint income tax
return, you and your spouse may combine your compensation to determine the
amount of regular contributions you are permitted to make to traditional IRAs
(and Roth IRAs discussed below). Even if one spouse has no compensation under
$3,000, married individuals filing jointly can contribute up to $6,000 for 2002
to any combination of traditional IRAs and Roth IRAs. (Any contributions to
Roth IRAs reduce the ability to contribute to traditional IRAs and vice versa.)
The maximum amount may be less if earned income is less and the other spouse
has made IRA contributions. No more than a combined total of $3,000 can be
contributed annually to either spouse's traditional and Roth IRAs. Each spouse
owns his or her traditional IRAs and Roth IRAs even if the other spouse funded
the contributions. A working spouse age 70-1/2 or over can contribute up to the
lesser of $3,000 or 100% of "earned income" to a traditional IRA for a
nonworking spouse until the year in which the nonworking spouse reaches age
70-1/2. Catch-up contributions may be made as described above for spouses who
are at least age 50 but under age 70-1/2 at any time during calendar year 2002.
DEDUCTIBILITY OF CONTRIBUTIONS. The amount of traditional IRA contributions
that you can deduct for a tax year depends on whether you are covered by an
employer-sponsored-tax-favored retirement plan, as defined under special
federal income tax rules. Your Form W-2 will indicate whether or not you are
covered by such a retirement plan.
Tax information 37
IF YOU ARE NOT COVERED BY A RETIREMENT PLAN DURING ANY PART OF THE YEAR, you
can make fully deductible contributions to your traditional IRAs for each tax
year up to $3,000 for 2002 or, if less, your earned income.
IF YOU ARE COVERED BY A RETIREMENT PLAN DURING ANY PART OF THE YEAR, and your
adjusted gross income (AGI) is BELOW THE LOWER DOLLAR FIGURE IN A PHASE-OUT
RANGE, you can make fully deductible contributions to your traditional IRAs.
For each tax year, your fully deductible contribution can be up to $3,000 for
2002, or if less, your earned income. (The dollar limit is $3,500 for people
eligible to make age 50-70-1/2 catch-up contributions.)
IF YOU ARE COVERED BY A RETIREMENT PLAN DURING ANY PART OF THE YEAR, and your
AGI falls within a PHASE-OUT range, you can make PARTIALLY DEDUCTIBLE
CONTRIBUTIONS to your traditional IRAs.
IF YOU ARE COVERED BY A RETIREMENT PLAN DURING ANY PART OF THE YEAR, and your
AGI falls ABOVE THE HIGHER FIGURE IN THE PHASE-OUT RANGE, you may not deduct
any of your regular contributions to your traditional IRAs.
If you are single and covered by a retirement plan during any part of the
taxable year, the deduction for traditional IRA contributions phases out with
the AGI between $34,000 and $44,000 in 2002. This range will increase every
year until 2005 when the range is $50,000-$60,000.
If you are married and file a joint return, and you are covered by a retirement
plan during any part of the taxable year, the deduction for traditional IRA
contributions phases out with AGI between $54,000 and $64,000 in 2002. This
range will increase every year until 2007 when the range is $80,000-$100,000.
Married individuals filing separately and living apart at all times are not
considered married for purposes of this deductible contribution calculation.
Generally, the active participation in an employer-sponsored retirement plan of
an individual is determined independently for each spouse. Where spouses have
"married filing jointly" status, however, the maximum deductible traditional
IRA contribution for an individual who is not an active participant (but whose
spouse is an active participant) is phased out for taxpayers with AGI of
between $150,000 and $160,000.
To determine the deductible amount of the contribution for 2002, you determine
AGI and subtract $34,000 if you are single, or $54,000 if you are married and
file a joint return with your spouse. The resulting amount is your excess AGI.
You then determine the limit on the deduction for traditional IRA contributions
using the following formula:
($10,000-excess AGI) times $3,000 (or earned Equals the adjusted
x income, if less, = deductible
divided by $10,000 or $3,500, contribution
if applicable) limit
ADDITIONAL "SAVER'S CREDIT" FOR CONTRIBUTIONS TO A TRADITIONAL IRA OR ROTH IRA
Beginning in 2002, you may be eligible for a nonrefundable income tax credit
for contributions you make to a traditional IRA or Roth IRA. If you qualify,
you may take this credit even though your traditional IRA contribution is
already fully or partially deductible. To take advantage of this "saver's
credit" you must be age 18 or over before the end of 2002. You cannot be a
full-time student or claimed as a dependent on another's tax return, and your
adjusted gross income cannot exceed $50,000. The amount of the tax credit you
can get varies from 10% of your contribution to 50% of your contribution, and
depends on your income tax filing status and your adjusted gross income. The
maximum annual contribution eligible for the saver's credit is $2,000. If you
and your spouse file a joint return, and each of you qualifies, each is
eligible for a maximum annual contribution of $2,000. Your saver's credit may
also be reduced if you take or have taken a taxable distribution from any plan
eligible for a saver's credit contribution -- even if you make a contribution
to one plan and take the distribution from another plan -- during the "testing
period." The "testing period" begins two years before the year for which you
make the contribution and ends when your tax return is due for the year for
which you make the contribution. Saver's-credit-eligible contributions may be
made to a 401(k) plan, 403(b) TSA, governmental 457(b) plan, SIMPLE IRA, or
SARSEP IRA, as well as a traditional IRA or Roth IRA.
NONDEDUCTIBLE REGULAR CONTRIBUTIONS. If you are not eligible to deduct part or
all of the traditional IRA contribution, you may still make nondeductible
contributions on which earnings will accumulate on a tax-deferred basis. The
combined deductible and nondeductible contributions to your traditional IRA (or
the nonworking spouse's traditional IRA) may not, however, exceed the maximum
$3,000 per person limit for 2002. For 2002, the dollar limit is $3,500 for
people eligible to make age 50-70-1/2 catch-up contributions. See "Excess
contributions" below. You must keep your own records of deductible and
nondeductible contributions in order to prevent double taxation on the
distribution of previously taxed amounts. See "Withdrawals, payments and
transfers of funds out of traditional IRAs" below.
If you are making nondeductible contributions in any taxable year, or you have
made nondeductible contributions to a traditional IRA in prior years and are
receiving distributions from any traditional IRA, you must file the required
information with the IRS. Moreover, if you are making nondeductible traditional
IRA contributions, you must retain all income tax returns and records
pertaining to such contributions until interests in all traditional IRAs are
fully distributed.
WHEN YOU CAN MAKE REGULAR CONTRIBUTIONS. If you file your tax returns on a
calendar year basis like most taxpayers, you have until the April 15 return
filing deadline (without extensions) of the following calendar year to make
your regular traditional IRA contributions for a tax year.
ROLLOVER AND TRANSFER CONTRIBUTIONS TO TRADITIONAL IRAS
Rollover contributions may be made to a traditional IRA from these "eligible
retirement plans":
o qualified plans;
o governmental 457(b) plans (beginning in 2002);
o TSAs (including Internal Revenue Code Section 403(b)(7) custodial accounts);
and
38 Tax information
o other traditional IRAs.
Direct transfer contributions may only be made directly from one traditional
IRA to another.
Any amount contributed to a traditional IRA after you reach age 70-1/2 must be
net of your required minimum distribution for the year in which the rollover or
direct transfer contribution is made.
ROLLOVERS FROM "ELIGIBLE RETIREMENT PLANS" OTHER THAN TRADITIONAL IRAS
There are two ways to do rollovers:
o Do it yourself
You actually receive a distribution that can be rolled over and you roll it
over to a traditional IRA within 60 days after the date you receive the
funds. The distribution from your eligible retirement plan will be net of 20%
mandatory federal income tax withholding. If you want, you can replace the
withheld funds yourself and roll over the full amount.
o Direct rollover
You tell the trustee or custodian of the eligible retirement plan to send the
distribution directly to your traditional IRA issuer. Direct rollovers are
not subject to mandatory federal income tax withholding.
All distributions from a TSA, qualified plan or governmental 457(b) plan are
eligible rollover distributions, unless the distribution is:
o "required minimum distributions" after age 70-1/2 or retirement; or
o substantially equal periodic payments made at least annually for your life
(or life expectancy) or the joint lives (or joint life expectancies) of you
and your designated beneficiary; or
o substantially equal periodic payments made for a specified period of 10 years
or more; or
o a hardship withdrawal; or
o corrective distributions that fit specified technical tax rules; or
o loans that are treated as distributions; or
o a death benefit payment to a beneficiary who is not your surviving spouse; or
o a qualified domestic relations order distribution to a beneficiary who is not
your current spouse or former spouse.
You should discuss with your tax advisor whether you should consider rolling
over funds from one type of tax qualified retirement plan to another, because
the funds will generally be subject to the rules of the recipient plan. For
example, funds in a governmental 457(b) plan are not subject to the additional
10% federal income tax penalty for premature distributions, but they may become
subject to this penalty if you roll the funds to a non-governmental 457(b) plan
and subsequently take a premature distribution.
ROLLOVERS OF AFTER-TAX CONTRIBUTIONS FROM ELIGIBLE RETIREMENT PLANS OTHER THAN
TRADITIONAL IRAS
Beginning in 2002, any after-tax contributions you have made to a qualified
plan or TSA (but not a governmental 457(b) plan) may be rolled over to a
traditional IRA (either in a direct rollover or a rollover you do yourself).
When the recipient plan is a traditional IRA, you are responsible for
recordkeeping and calculating the taxable amount of any distributions you take
from that traditional IRA. See "Taxation of Payments" later in this Prospectus
under "Withdrawals, payments and transfers of funds out of traditional IRAs."
ROLLOVERS FROM TRADITIONAL IRAS TO TRADITIONAL IRAS
You may roll over amounts from one traditional IRA to one or more of your other
traditional IRAs if you complete the transaction within 60 days after you
receive the funds. You may make such a rollover only once in every 12-month
period for the same funds. Trustee-to-trustee or custodian-to-custodian direct
transfers are not rollover transactions. You can make these more frequently
than once in every 12-month period.
The surviving spouse beneficiary of a deceased individual can roll over or
directly transfer an inherited traditional IRA to one or more other traditional
IRAs. Also, in some cases, traditional IRAs can be transferred on a tax-free
basis between spouses or former spouses as a result of a court ordered divorce
or separation decree.
EXCESS CONTRIBUTIONS
Excess contributions to IRAs are subject to a 6% excise tax for the year in
which made and for each year after until withdrawn. The following are excess
contributions to IRAs:
o regular contributions of more than $3,000 for 2002, (or $3,500 if you are
ages 50-70-1/2); or
o regular contributions of more than earned income for the year, if that amount
is under $3,000 for 2002 (or $3,500 if you are ages 50-70-1/2); or
o regular contributions to a traditional IRA made after you reach age 70-1/2;
or
o rollover contributions of amounts which are not eligible to be rolled over,
for example, minimum distributions required to be made after age 70-1/2.
You can avoid the excise tax by withdrawing an excess contribution (rollover or
regular) before the due date (including extensions) for filing your federal
income tax return for the year. If it is an excess regular traditional IRA
contribution, you cannot take a tax deduction for the amount withdrawn. You do
not have to include the excess contribution withdrawn as part of your income.
It is also not subject to the 10% additional penalty tax on early
distributions, discussed below under "Early distribution penalty tax." You do
have to withdraw any earnings
Tax information 39
that are attributed to the excess contribution. The withdrawn earnings would be
included in your gross income and could be subject to the 10% penalty tax.
Even after the due date for filing your return, you may withdraw an excess
rollover contribution, without income inclusion or 10% penalty, if:
(1) the rollover was from an eligible retirement plan to a traditional IRA;
(2) the excess contribution was due to incorrect information that the plan
provided; and
(3) you took no tax deduction for the excess contribution.
RECHARACTERIZATIONS
Amounts that have been contributed as traditional IRA funds may subsequently be
treated as Roth IRA funds. Special federal income tax rules allow you to change
your mind again and have amounts that are subsequently treated as Roth IRA
funds, once again treated as traditional IRA funds. You do this by using the
forms we prescribe. This is referred to as having "recharacterized" your
contribution.
WITHDRAWALS, PAYMENTS AND TRANSFERS OF FUNDS OUT OF TRADITIONAL IRAS
NO FEDERAL INCOME TAX LAW RESTRICTIONS ON WITHDRAWALS. You can withdraw any or
all of your funds from a traditional IRA at any time. You do not need to wait
for a special event like retirement.
TAXATION OF PAYMENTS. Earnings in traditional IRAs are not subject to federal
income tax until you or your beneficiary receive them. Taxable payments or
distributions include withdrawals from your contract, surrender of your
contract, and annuity payments from your contract. Death benefits are also
taxable. Except as discussed below, the total amount of any distribution from a
traditional IRA must be included in your gross income as ordinary income.
If you have ever made nondeductible IRA contributions to any traditional IRA
(it does not have to be to this particular traditional IRA contract), those
contributions are recovered tax free when you get distributions from any
traditional IRA. You must keep permanent tax records of all of your
nondeductible contributions to traditional IRAs. At the end of any year in
which you have received a distribution from any traditional IRA, you calculate
the ratio of your total nondeductible traditional IRA contributions (less any
amounts previously withdrawn tax free) to the total account balances of all
traditional IRAs you own at the end of the year plus all traditional IRA
distributions made during the year. Multiply this by all distributions from the
traditional IRA during the year to determine the nontaxable portion of each
distribution.
In addition, a distribution is not taxable if:
o the amount received is a withdrawal of excess contributions, as described
under "Excess contributions" above; or
o the entire amount received is rolled over to another traditional IRA or other
eligible retirement plan which agrees to accept the funds. (See "Rollovers
from eligible retirement plans other than traditional IRAs" under "Rollover
and transfer contributions to traditional IRAs" above.)
Beginning in 2002, the following are eligible to receive rollovers of
distributions from a traditional IRA: a qualified plan, a TSA or a governmental
457 plan. After-tax contributions in a traditional IRA cannot be rolled from
your traditional IRA into, or back into, a qualified plan, TSA or governmental
457 plan. Before you decide to roll over a distribution from a traditional IRA
to another eligible retirement plan, you should check with the administrator of
that plan about whether the plan accepts rollovers and, if so, the types it
accepts. You should also check with the administrator of the receiving plan
about any documents required to be completed before it will accept a rollover.
Distributions from a traditional IRA are not eligible for favorable ten-year
averaging and long-term capital gain treatment available under limited
circumstances for distributions from qualified plans. If you might be eligible
for such tax treatment from your qualified plan, you may be able to preserve
such tax treatment even though an eligible rollover from a qualified plan is
temporarily rolled into a "conduit IRA" before being rolled back into a
qualified plan. See your tax advisor.
REQUIRED MINIMUM DISTRIBUTIONS
- --------------------------------------------------------------------------------
The IRS and Treasury have recently proposed revisions to the minimum
distribution rules. We expect these rules to be finalized in 2002. Since the
proposed revisions permit IRA owners and beneficiaries to apply the proposed
revisions to distributions for calendar year 2001, the discussion below
reflects the proposed revisions.
- --------------------------------------------------------------------------------
LIFETIME REQUIRED MINIMUM DISTRIBUTIONS. You must start taking annual
distributions from your traditional IRAs for the year in which you turn age
70-1/2.
WHEN YOU HAVE TO TAKE THE FIRST REQUIRED MINIMUM DISTRIBUTION.
The first required minimum distribution is for the calendar year in which you
turn age 70-1/2. You have the choice to take this first required minimum
distribution during the calendar year you actually reach age 70-1/2, or to delay
taking it until the first three-month period in the next calendar year (January
1 - April 1). Distributions must start no later than your "Required Beginning
Date," which is April 1st of the calendar year after the calendar year in which
you turn age 70-1/2. If you choose to delay taking the first annual minimum
distribution, then you will have to take two minimum distributions in that year
- -- the delayed one for the first year and the one actually for that year. Once
minimum distributions begin, they must be made at some time each year.
HOW YOU CAN CALCULATE REQUIRED MINIMUM DISTRIBUTIONS. There are two approaches
to taking required minimum distributions -- "account-based" or "annuity-based."
ACCOUNT-BASED METHOD. If you choose an account-based method, you divide the
value of your traditional IRA as of December 31st of the past calendar year by
a number corresponding to your age from an IRS table. This gives you the
required minimum distribution amount for
40 Tax information
that particular IRA for that year. If your spouse is your sole beneficiary and
more than 10 years younger than you, the dividing number you use may be from
another IRS table and may produce a smaller lifetime required minimum
distribution amount. Regardless of the table used, the required minimum
distribution amount will vary each year as the account value and the divisor
change. If you initially choose an account-based method, you may later apply
your traditional IRA funds to a life annuity-based payout with any certain
period not exceeding remaining life expectancy.
ANNUITY-BASED METHOD. If you choose an annuity-based method, you do not have to
do annual calculations. You apply the account value to an annuity payout for
your life or the joint lives of you and a designated beneficiary, or for a
period certain not extending beyond applicable life expectancies.
DO YOU HAVE TO PICK THE SAME METHOD TO CALCULATE YOUR REQUIRED MINIMUM
DISTRIBUTIONS FOR ALL OF YOUR TRADITIONAL IRAS AND OTHER RETIREMENT PLANS? No.
If you want, you can choose a different method and a different beneficiary for
each of your traditional IRAs and other retirement plans. For example, you can
choose an annuity payout from one IRA, a different annuity payout from a
qualified plan, and an account-based annual withdrawal from another IRA.
WILL WE PAY YOU THE ANNUAL AMOUNT EVERY YEAR FROM YOUR TRADITIONAL IRA BASED ON
THE METHOD YOU CHOOSE? No, unless you affirmatively select an annuity payout
option or an account-based withdrawal option such as our minimum distribution
withdrawal option. Otherwise, you will be responsible for calculating and
requesting your required minimum distribution withdrawal.
WHAT IF YOU TAKE MORE THAN YOU NEED TO FOR ANY YEAR? The required minimum
distribution amount for your traditional IRAs is calculated on a year-by-year
basis. There are no carry-back or carry-forward provisions. Also, you cannot
apply required minimum distribution amounts you take from your qualified plans
to the amounts you have to take from your traditional IRAs and vice versa.
However, the IRS will let you calculate the required minimum distribution for
each traditional IRA that you maintain, using the method that you picked for
that particular IRA. You can add these required minimum distribution amount
calculations together. As long as the total amount you take out every year
satisfies your overall traditional IRA required minimum distribution amount,
you may choose to take your annual required minimum distribution from any one
or more traditional IRAs that you own.
WHAT IF YOU TAKE LESS THAN YOU NEED TO FOR ANY YEAR? Your IRA could be
disqualified, and you could have to pay tax on the entire value. Even if your
IRA is not disqualified, you could have to pay a 50% penalty tax on the
shortfall (required amount for traditional IRAs less amount actually taken). It
is your responsibility to meet the required minimum distribution rules. We will
remind you when our records show that your age 70-1/2 is approaching. If you do
not select a method with us, we will assume you are taking your required
minimum distribution from another traditional IRA that you own.
WHAT ARE THE REQUIRED MINIMUM DISTRIBUTION PAYMENTS AFTER YOU DIE? These could
vary on whether you die before or after your Required Beginning Date for
lifetime required minimum distribution payments, and the status of your
beneficiary.
INDIVIDUAL BENEFICIARY. Regardless of whether your death occurs before or after
your Required Beginning Date, under the revised proposed rules, an individual
death beneficiary calculates annual post-death required minimum distribution
payments based on the beneficiary's life expectancy using the "term certain
method." That is, he or she determines his or her life expectancy using the
life expectancy tables as of the calendar year after the owner's death and
reduces that number by one each subsequent year.
If you die before your Required Beginning Date, the revised proposed rules
permit any individual beneficiary, including a spousal beneficiary, to elect
instead to apply the "5-year rule." Under this rule, instead of annual payments
having to be made beginning with the first in the year following the owner's
death, the entire account must be distributed by the end of the fifth year
following the year of the owner's death. No distribution is required before
that fifth year.
SPOUSAL BENEFICIARY. If you die after your Required Beginning Date, and your
death beneficiary is your surviving spouse, your spouse has a number of
choices. The revised proposed rules permit post-death distributions to be made
over your spouse's single life expectancy. Any amounts distributed after that
surviving spouse's death are made over the spouse's life expectancy calculated
in the year of his/her death, reduced by one for each subsequent year. In some
circumstances, your surviving spouse may elect to become the owner of the
traditional IRA and halt distributions until he or she reaches age 70-1/2, or
roll over amounts from your traditional IRA into his/her own traditional IRA or
other eligible retirement plan.
If you die before your Required Beginning Date, and the death beneficiary is
your surviving spouse, the revised proposed rules permit the spouse to delay
starting payments over his/her life expectancy until the year in which you
would have attained age 70-1/2.
NON-INDIVIDUAL BENEFICIARY. If you die after your Required Beginning Date, and
your death beneficiary is a non-individual, such as the estate, the revised
proposed rules permit the beneficiary to calculate post-death required minimum
distribution amounts based on the owner's life expectancy in the year of death.
HOWEVER, NOTE THAT WE NEED AN INDIVIDUAL ANNUITANT TO KEEP AN ANNUITY CONTRACT/
CERTIFICATE IN FORCE. IF THE BENEFICIARY IS NOT AN INDIVIDUAL, WE MUST
DISTRIBUTE AMOUNTS REMAINING IN THE ANNUITY CONTRACT AFTER THE DEATH OF THE
ANNUITANT.
If you die before your Required Beginning Date for lifetime required minimum
distribution payments, and the death beneficiary is a non-individual, such as
the estate, the revised proposed rules continue to apply the 5-year rule
discussed above under "Individual beneficiary." PLEASE NOTE THAT WE NEED AN
INDIVIDUAL ANNUITANT TO KEEP AN ANNUITY CONTRACT/CERTIFICATE IN FORCE. IF THE
BENEFICIARY IS NOT AN INDIVIDUAL, WE MUST DISTRIBUTE AMOUNTS REMAINING IN THE
ANNUITY CONTRACT AFTER THE DEATH OF THE ANNUITANT.
SUCCESSOR OWNER AND ANNUITANT
If your spouse is the sole primary beneficiary and elects to become the
successor owner and annuitant, no death benefit is payable until your surviving
spouse's death.
Tax information 41
PAYMENTS TO A BENEFICIARY AFTER YOUR DEATH
IRA death benefits are taxed the same as IRA distributions.
BORROWING AND LOANS ARE PROHIBITED TRANSACTIONS
You cannot get loans from a traditional IRA. You cannot use a traditional IRA
as collateral for a loan or other obligation. If you borrow against your IRA or
use it as collateral, its tax-favored status will be lost as of the first day
of the tax year in which this prohibited event occurs. If this happens, you
must include the value of the traditional IRA in your federal gross income.
Also, the early distribution penalty tax of 10% may apply if you have not
reached age 59-1/2 before the first day of that tax year.
EARLY DISTRIBUTION PENALTY TAX
A penalty tax of 10% of the taxable portion of a distribution applies to
distributions from a traditional IRA made before you reach age 59-1/2. Some of
the available exceptions to the pre-age 59-1/2 penalty tax include distributions
made:
o on or after your death; or
o because you are disabled (special federal income tax definition); or
o to pay for certain extraordinary medical expenses (special federal income tax
definition); or
o to pay medical insurance premiums for unemployed individuals (special federal
income tax definition); or
o to pay certain first-time home buyer expenses (special federal income tax
definition); or
o to pay certain higher education expenses (special federal income tax
definition -- there is a $10,000 lifetime total limit for these distributions
from all your traditional and Roth IRAs); or
o in the form of substantially equal periodic payments made at least annually
over your life (or your life expectancy), or over the joint lives of you and
your beneficiary (or your joint life expectancy) using an IRS-approved
distribution method.
ROTH INDIVIDUAL RETIREMENT ANNUITIES
("ROTH IRAS")
This section of the prospectus covers some of the special tax rules that apply
to Roth IRAs. If the rules are the same as those that apply to the traditional
IRA, we will refer you to the same topic under "Traditional IRAs."
The EQUI-VEST(R) Express(SM) Roth IRA contracts are designed to qualify as Roth
individual retirement annuities under Sections 408(a) and 408(b) of the
Internal Revenue Code.
CONTRIBUTIONS TO ROTH IRAS
Individuals may make four different types of contributions to a Roth IRA:
o regular after-tax contributions out of earnings; or
o taxable rollover contributions from Traditional IRAs ("conversion"
contributions); or
o tax-free rollover contributions from other Roth IRAs; or
o tax-free direct custodian-to-custodian transfers from other Roth IRAs
("direct transfers").
If you use the forms we require, we will also accept traditional IRA funds
which are subsequently recharacterized as Roth IRA funds following special
federal income tax rules.
REGULAR CONTRIBUTIONS TO ROTH IRAS
LIMITS ON REGULAR CONTRIBUTIONS. Generally, $3,000 is the maximum amount that
you may contribute to all IRAs (including Roth IRAs) for 2002. This limit does
not apply to rollover contributions or direct custodian-to-custodian transfers
into a Roth IRA. Any contributions to Roth IRAs reduce the ability to
contribute to traditional IRAs and vice versa. When your earnings are below
$3,000, your earned income or compensation for the year is the most you can
contribute. If you are married and file a joint income tax return, you and your
spouse may combine your compensation to determine the amount of regular
contributions you are permitted to make to Roth IRAs and traditional IRAs. See
the discussion above under traditional IRAs. If you or your spouse are at least
age 50 at any time during 2002, additional catch-up contributions totalling up
to $500 can be made for the calendar year 2002.
With a Roth IRA, you can make regular contributions when you reach age 70-1/2,
as long as you have sufficient earnings. But, you cannot make contributions,
regardless of your age, for any year that:
o your federal income tax filing status is "married filing jointly" and your
modified adjusted gross income is over $160,000; or,
o your federal income tax filing status is "single" and your modified adjusted
gross income is over $110,000.
However, you can make regular Roth IRA contributions in reduced amounts when:
o your federal income tax filing status is "married filing jointly" and your
modified adjusted gross income is between $150,000 and $160,000; or
o your federal income tax filing status is "single" and your modified adjusted
gross income is between $95,000 and $110,000.
If you are married and filing separately and your modified adjusted gross
income is between $0 and $10,000 the amount of regular contribution you are
permitted to make is phased out. If your modified adjusted gross income is more
than $10,000 you cannot make a regular Roth IRA contribution.
WHEN YOU CAN MAKE CONTRIBUTIONS? Same as traditional IRAs.
DEDUCTIBILITY OF CONTRIBUTIONS. Roth IRA contributions are not tax deductible.
42 Tax information
ROLLOVERS AND DIRECT TRANSFERS
WHAT IS THE DIFFERENCE BETWEEN ROLLOVER AND DIRECT TRANSFER TRANSACTIONS? You
may make rollover contributions to a Roth IRA from only two sources:
o another Roth IRA ("tax-free rollover contribution"); or
o another traditional IRA, including a SEP-IRA or SIMPLE IRA (after a two-year
rollover limitation period for SIMPLE-IRA funds) in a taxable "conversion"
rollover ("conversion contribution").
You may not make contributions to a Roth IRA from a qualified plan under
Section 401(a) of the Internal Revenue Code, or a TSA under Section 403(b) of
the Internal Revenue Code or any other eligible retirement plan. You may make
direct transfer contributions to a Roth IRA only from another Roth IRA.
The difference between a rollover transaction and a direct transfer transaction
is the following. In a rollover transaction you actually take possession of the
funds rolled over, or are considered to have received them under tax law in the
case of a change from one type of plan to another. In a direct transfer
transaction, you never take possession of the funds, but direct the first Roth
IRA custodian, trustee, or issuer to transfer the first Roth IRA funds directly
to Equitable Life, as the Roth IRA issuer. You can make direct transfer
transactions only between identical plan types (for example, Roth IRA to Roth
IRA). You can also make rollover transactions between identical plan types.
However, you can only use rollover transactions between different plan types
(for example, traditional IRA to Roth IRA).
You may make both Roth IRA to Roth IRA rollover transactions and Roth IRA to
Roth IRA direct transfer transactions. This can be accomplished on a completely
tax-free basis. However, you may make Roth IRA to Roth IRA rollover
transactions only once in any 12-month period for the same funds.
Trustee-to-trustee or custodian-to-custodian direct transfers can be made more
frequently than once a year. Also, if you send us the rollover contribution to
apply it to a Roth IRA, you must do so within 60 days after you receive the
proceeds from the original IRA to get rollover treatment.
The surviving spouse beneficiary of a deceased individual can roll over or
directly transfer an inherited Roth IRA to one or more other Roth IRAs. In some
cases, Roth IRAs can be transferred on a tax-free basis between spouses or
former spouses as a result of a court ordered divorce or separation decree.
CONVERSION CONTRIBUTIONS TO ROTH IRAS
In a conversion rollover transaction, you withdraw (or are considered to have
withdrawn) all or a portion of funds from a traditional IRA you maintain and
convert it to a Roth IRA within 60 days after you receive (or are considered to
have received) the traditional IRA proceeds. Unlike a rollover from a
traditional IRA to another traditional IRA, the conversion rollover transaction
is not tax-free. Instead, the distribution from the traditional IRA is
generally fully taxable. For this reason, we are required to withhold 10%
federal income tax from the amount converted unless you elect out of such
withholding. (If you have ever made nondeductible regular IRA contributions to
any traditional IRA -- whether or not it is the traditional IRA you are
converting -- a pro rata portion of the distribution is tax-free.)
There is, however, no early distribution penalty tax on the traditional IRA
withdrawal that you are converting to a Roth IRA, even if you are under age
59-1/2.
You cannot make conversion contributions to a Roth IRA for any taxable year in
which your modified adjusted gross income exceeds $100,000. (For this purpose,
your modified adjusted gross income is calculated without the gross income
stemming from the traditional IRA conversion.) You also cannot make conversion
contributions to a Roth IRA for any taxable year in which your federal income
tax filing status is "married filing separately."
Finally, you cannot make conversion contributions to a Roth IRA to the extent
that the funds in your traditional IRA are subject to the annual required
minimum distribution rule applicable to traditional IRAs beginning at age
70-1/2.
You cannot convert and reconvert an amount during the same taxable year, or if
later, during the 30-day period following a recharacterization. If you
reconvert during either of these periods, it will be a failed Roth IRA
conversion.
RECHARACTERIZATIONS
You may be able to treat a contribution made to one type of IRA as having been
made to a different type of IRA. This is called recharacterizing the
contribution.
HOW TO RECHARACTERIZE. To recharacterize a contribution, you generally must
have the contribution transferred from the first IRA (the one to which it was
made) to the second IRA in a deemed trustee-to-trustee transfer. If the
transfer is made by the due date (including extensions) for your tax return for
the year during which the contribution was made, you can elect to treat the
contribution as having been originally made to the second IRA instead of to the
first IRA. It will be treated as having been made to the second IRA on the same
date that it was actually made to the first IRA. You must report the
recharacterization, and must treat the contribution as having been made to the
second IRA, instead of the first IRA, on your tax return for the year during
which the contribution was made.
The contribution will not be treated as having been made to the second IRA
unless the transfer includes any net income allocable to the contribution. You
can take into account any loss on the contribution while it was in the IRA when
calculating the amount that must be transferred. If there was a loss, the net
income you must transfer may be a negative amount.
No deduction is allowed for the contribution to the first IRA and any net
income transferred with the recharacterized contribution is treated as earned
in the second IRA. The contribution will not be treated as having been made to
the second IRA to the extent any deduction was allowed with respect to the
contribution to the first IRA.
Tax information 43
For recharacterization purposes, a distribution from a traditional IRA that is
received in one tax year and rolled over into a Roth IRA in the next year, but
still within 60 days of the distribution from the traditional IRA, is treated
as a contribution to the Roth IRA in the year of the distribution from the
traditional IRA.
Roth IRA conversion contributions from a SEP-IRA or SIMPLE IRA can be
recharacterized to a SEP-IRA or SIMPLE IRA (including the original SEP-IRA or
SIMPLE IRA).
To recharacterize a contribution you must use our forms.
The recharacterization of a contribution is not treated as a rollover for
purposes of the 12 month limitation period described above. This rule applies
even if the contribution would have been treated as a rollover contribution by
the second IRA if it had been made directly to the second IRA rather than as a
result of a recharacterization of a contribution to the first IRA.
WITHDRAWALS, PAYMENTS AND TRANSFERS OF FUNDS OUT OF ROTH IRAS
NO FEDERAL INCOME TAX LAW RESTRICTIONS ON WITHDRAWALS. You can withdraw any or
all of your funds from a Roth IRA at any time; you do not need to wait for a
special event like retirement.
DISTRIBUTIONS FROM ROTH IRAS
Distributions include withdrawals from your contract, surrender and termination
of your contract and annuity payments from your contract. Death benefits are
also distributions.
The following distributions from Roth IRAs are free of income tax:
o Rollovers from a Roth IRA to another Roth IRA;
o Direct transfers from a Roth IRA to another Roth IRA;
o "Qualified distributions" from Roth IRAs; and
o return of excess contributions or amounts recharacterized to a traditional
IRA.
QUALIFIED DISTRIBUTIONS FROM ROTH IRAS
Qualified distributions from Roth IRAs made because of one of the following
four qualifying events or reasons are not includable in income:
o you reach age 59-1/2; or
o you die; or
o you become disabled (special federal income tax definition); or
o your distribution is a "qualified first-time homebuyer distribution" (special
federal income tax definition; $10,000 lifetime total limit for these
distributions from all of your traditional and Roth IRAs).
You also have to meet a five-year aging period. A qualified distribution is any
distribution made after the five-taxable year period beginning with the first
taxable year for which you made any contribution to any Roth IRA (whether or
not the one from which the distribution is being made). It is not possible to
have a tax-free qualified distribution before the year 2003 because of the
five-year aging requirement.
NONQUALIFIED DISTRIBUTIONS FROM ROTH IRAS. Nonqualified distributions from Roth
IRAs are distributions that do not meet both the qualifying event and five-year
aging period tests described above. If you receive such a distribution, part of
it may be taxable. For purposes of determining the correct tax treatment of
distributions (other than the withdrawal of excess contributions and the
earnings on them), there is a set order in which contributions (including
conversion contributions) and earnings are considered to be distributed from
your Roth IRA. The order of distributions is as follows:
(1) Regular contributions
(2) Conversion contributions, on a first-in-first-out basis (generally, total
conversions from the earliest year first). These conversion contributions
are taken into account as follows:
(a) Taxable portion (the amount required to be included in gross income
because of conversion) first, and then the
(b) Nontaxable portion.
(3) Earnings on contributions.
Rollover contributions from other Roth IRAs are disregarded for this purpose.
To determine the taxable amounts distributed, distributions and contributions
are aggregated or grouped and added together as follows:
(1) All distributions made during the year from all Roth IRAs you maintain --
within any custodian or issuer -- are added together.
(2) All regular contributions made during and for the year (contributions made
after the close of the year, but before the due date of your return) are
added together. This total is added to the total undistributed regular
contributions made in prior years.
(3) All conversion contributions made during the year are added together. For
purposes of the ordering rules in the case of any conversion in which the
conversion distribution is made in 2002 and the conversion contribution is
made in 2003, the conversion contribution is treated as contributed prior to
other conversion contributions made in 2003.
Any recharacterized contributions that end up in a Roth IRA are added to the
appropriate contribution group for the year that the original contribution
would have been taken into account if it had been made directly to the Roth
IRA.
Any recharacterized contribution that ends up in an IRA other than a Roth IRA
is disregarded for the purpose of grouping both contributions and
distributions. Any amount withdrawn to correct an excess contribution
(including the earnings withdrawn) is also disregarded for this purpose.
You must keep your own records of regular and conversion contributions to all
Roth IRAs to assure appropriate taxation. You may have to file information on
your contributions to and distributions from any Roth IRA on your tax return.
You may have to retain all income tax returns and records pertaining to such
contributions and distributions until your interests in all Roth IRAs are
distributed.
44 Tax information
Like traditional IRAs, taxable distributions from a Roth IRA are not entitled
to the special favorable ten-year averaging and long-term capital gain
treatment available in certain limited cases to distributions from qualified
plans.
REQUIRED MINIMUM DISTRIBUTIONS
Lifetime minimum distribution requirements do not apply.
REQUIRED MINIMUM DISTRIBUTIONS AT DEATH
Same as traditional IRA under "What are the required minimum distribution
payments after you die?"
PAYMENTS TO A BENEFICIARY AFTER YOUR DEATH
Distributions to a beneficiary generally receive the same tax treatment as if
the distribution had been made to you.
BORROWING AND LOANS ARE PROHIBITED TRANSACTIONS
Same as traditional IRA.
EXCESS CONTRIBUTIONS
Generally the same as traditional IRA, except that regular contributions made
after age 70-1/2 are not "excess contributions."
Excess rollover contributions to Roth IRAs are contributions not eligible to be
rolled over (for example, conversion contributions from a traditional IRA if
your modified adjusted gross income is in excess of $100,000 in the conversion
year).
You can withdraw or recharacterize any contribution to a Roth IRA before the
due date (including extensions) for filing your federal income tax return for
the tax year. If you do this, you must also withdraw or recharacterize any
earnings attributable to the contribution.
EARLY DISTRIBUTION PENALTY TAX
Same as traditional IRA.
For Roth IRAs, special penalty rules may apply to amounts withdrawn
attributable to 1998 conversion rollovers.
FEDERAL AND STATE INCOME TAX WITHHOLDING AND INFORMATION REPORTING
We must withhold federal income tax from distributions from annuity contracts.
You may be able to elect out of this income tax withholding in some cases.
Generally, we do not have to withhold if your distributions are not taxable.
The rate of withholding will depend on the type of distribution and, in certain
cases, the amount of your distribution. Any income tax withheld is a credit
against your income tax liability. If you do not have sufficient income tax
withheld or do not make sufficient estimated income tax payments, you may incur
penalties under the estimated income tax rules.
You must file your request not to withhold in writing before the payment or
distribution is made. Our processing office will provide forms for this
purpose. You cannot elect out of withholding unless you provide us with your
correct Taxpayer Identification Number and a United States residence address.
You cannot elect out of withholding if we are sending the payment out of the
United States.
You should note the following special situations:
o we might have to withhold and/or report on amounts we pay under a free look
or cancellation.
o we are generally required to withhold on conversion rollovers of traditional
IRAs to Roth IRAs, as it is considered a withdrawal from the traditional IRA
and is taxable.
o We are required to withhold on the gross amount of a distribution from a
Roth IRA to the extent it is reasonable for us to believe that a
distribution is includable in your gross income. This may result in tax
being withheld even though the Roth IRA distribution is ultimately not
taxable. You can elect out of withholding as described below.
Special withholding rules apply to foreign recipients and United States
citizens residing outside the United States. We do not discuss these rules here
in detail. However, we may require additional documentation in the case of
payments made to non-United States persons and United States persons living
abroad prior to processing any requested transaction.
Certain states have indicated that state income tax withholding will also apply
to payments from the contracts made to residents. In some states, you may elect
out of state withholding, even if federal withholding applies. Generally, an
election out of federal withholding will also be considered an election out of
state withholding. If you need more information concerning a particular state
or any required forms, call our processing office at the toll-free number.
FEDERAL INCOME TAX WITHHOLDING ON PERIODIC ANNUITY PAYMENTS
We withhold differently on "periodic" and "non-periodic" payments. For a
periodic annuity payment, for example, unless you specify a different number of
withholding exemptions, we withhold assuming that you are married and claiming
three withholding exemptions. If you do not give us your correct Taxpayer
Identification Number, we withhold as if you are single with no exemptions.
Based on the assumption that you are married and claiming three withholding
exemptions, if you receive less than $15,360 in periodic annuity payments in
2002 your payments will generally be exempt from federal income tax
withholding. You could specify a different choice of withholding exemption or
request that tax be withheld. Your withholding election remains effective
unless and until you revoke it. You may revoke or change your withholding
election at any time.
FEDERAL INCOME TAX WITHHOLDING ON NON-PERIODIC ANNUITY PAYMENTS (WITHDRAWALS)
For a non-periodic distribution (total surrender, termination, or partial
withdrawal), we generally withhold at a flat 10% rate. We apply that rate to
the taxable amount in the case of nonqualified contracts, and
Tax information 45
to the payment amount in the case of traditional IRAs and Roth IRAs, where it
is reasonable to assume an amount is includable in gross income.
IMPACT OF TAXES TO EQUITABLE LIFE
The contracts provide that we may charge Separate Account A for taxes. We do
not now, but may in the future set up reserves for such taxes.
46 Tax information
8. More information
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ABOUT OUR SEPARATE ACCOUNT A
Each variable investment option is a subaccount of our Separate Account A. We
established Separate Account A in 1968 under special provisions of the New York
Insurance Law. These provisions prevent creditors from any other business we
conduct from reaching the assets we hold in our variable investment options for
owners of our variable annuity contracts. We are the legal owner of all of the
assets in Separate Account A and may withdraw any amounts that exceed our
reserves and other liabilities with respect to variable investment options
under our contracts. The results of Separate Account A's operations are
accounted for without regard to Equitable Life's other operations.
Separate Account A is registered under the Investment Company Act of 1940 and
is classified by that act as a "unit investment trust." The SEC, however, does
not manage or supervise Equitable Life or Separate Account A.
Each subaccount (variable investment option) within Separate Account A that is
available under the contract invests solely in Class IB/B shares issued by the
corresponding portfolio of either Trust.
We reserve the right subject to compliance with laws that apply:
(1) to add variable investment options to, or to remove variable investment
options from, Separate Account A, or to add other separate accounts;
(2) to combine any two or more variable investment options;
(3) to transfer the assets we determine to be the shares of the class of
contracts to which the contracts belong from any variable investment option
to another variable investment option;
(4) to operate Separate Account A or any variable investment option as a
management investment company under the Investment Company Act of 1940 (in
which case, charges and expenses that otherwise would be assessed against an
underlying mutual fund would be assessed against Separate Account A or a
variable investment option directly);
(5) to deregister Separate Account A under the Investment Company Act of 1940;
(6) to restrict or eliminate any voting rights as to Separate Account A; and
(7) to cause one or more variable investment options to invest some or all of
their assets in one or more other trusts or investment companies.
ABOUT THE TRUSTS
EQ Advisors Trust and AXA Premier VIP Trust are registered under the Investment
Company Act of 1940. They are classified as "open-end management investment
companies," more commonly called mutual funds. Each Trust issues different
shares relating to each of its portfolios.
Equitable Life serves as the investment manager of the Trusts. As such,
Equitable Life oversees the activities of the investment advisors with respect
to the Trusts and is responsible for retaining or discontinuing the services of
those advisors. (Prior to September 1999, EQ Financial Consultants, Inc. the
predecessor to AXA Advisors, LLC and an affiliate of Equitable Life served as
investment manager to EQ Advisors Trust.)
EQ Advisors Trust commenced operations on May 1, 1997. For periods prior to
October 18, 1999 the Alliance portfolios (other than EQ/Alliance Premier Growth
and EQ/Alliance Technology) were part of The Hudson River Trust. On October 18,
1999, the assets of these portfolios became the corresponding portfolios of EQ
Advisors Trust. AXA Premier VIP Trust commenced operations on December 31,
2001.
The Trusts do not impose sales charges or "loads" for buying and selling their
shares. All dividends and other distributions on the Trusts' shares are
reinvested in full. The Board of Trustees of each Trust may establish
additional portfolios or eliminate existing portfolios at any time. More
detailed information about each Trust, its portfolio investment objectives,
policies, restrictions, risks, expenses, its Rule 12b-1 Plan relating to its
Class IB/B shares, and other aspects of its operations, appears in the
prospectuses for each Trust, which are attached at the end of this Prospectus,
or in their respective SAIs, which are available upon request.
ABOUT OUR FIXED MATURITY OPTIONS
RATES TO MATURITY AND PRICE PER $100 OF MATURITY VALUE
We can determine the amount required to be allocated to one or more fixed
maturity options in order to produce specified maturity values. For example, we
can tell you how much you need to allocate per $100 of maturity value.
The rates to maturity are determined weekly. The rates in the table below are
illustrative only and will most likely differ from the rates applicable at time
of purchase. Current rates to maturity can be obtained through TOPS or EQAccess
or from your financial professional.
The rates to maturity for new allocations as of February 15, 2002 and the
related price per $100 of maturity value were as shown below.
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FIXED MATURITY
OPTIONS
WITH JUNE 15
MATURITY DATE RATE TO MATURITY AS
OF OF PRICE PER $100 OF
MATURITY YEAR FEBRUARY 15, 2002 MATURITY VALUE
- --------------------------------------------------------------------------------
2002 3.00% $ 99.03
2003 3.00% $ 96.15
2004 3.25% $ 92.81
2005 3.95% $ 87.89
2006 4.30% $ 83.33
2007 4.75% $ 78.08
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More information 47
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FIXED MATURITY
OPTIONS
WITH JUNE 15
MATURITY DATE RATE TO MATURITY AS
OF OF PRICE PER $100 OF
MATURITY YEAR FEBRUARY 15, 2002 MATURITY VALUE
- --------------------------------------------------------------------------------
2008 5.05% $ 73.19
2009 5.30% $ 68.47
2010 5.50% $ 64.00
2011 5.65% $ 59.87
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HOW WE DETERMINE THE MARKET VALUE ADJUSTMENT
We use the following procedure to calculate the market value adjustment (up or
down) we make if you withdraw all of your value from a fixed maturity option
before its maturity date.
(1) We determine the market adjusted amount on the date of the withdrawal as
follows:
(a) we determine the fixed maturity amount that would be payable on the
maturity date, using the rate to maturity for the fixed maturity option.
(b) we determine the period remaining in your fixed maturity option (based
on the withdrawal date) and convert it to fractional years based on a
365-day year. For example, three years and 12 days becomes 3.0329.
(c) we determine the current rate to maturity that applies on the withdrawal
date to new allocations to the same fixed maturity option.
(d) we determine the present value of the fixed maturity amount payable at
the maturity date, using the period determined in (b) and the rate
determined in (c).
(2) We determine the fixed maturity amount as of the current date.
(3) We subtract (2) from the result in (1)(d). The result is the market value
adjustment applicable to such fixed maturity option, which may be positive
or negative.
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Your market adjusted amount is the present value of the maturity value
discounted at the rate to maturity in effect for new contributions to that same
fixed maturity option on the date of the calculation.
- --------------------------------------------------------------------------------
If you withdraw only a portion of the amount in a fixed maturity option, the
market value adjustment will be a percentage of the market value adjustment
that would have applied if you had withdrawn the entire value in that fixed
maturity option. This percentage is equal to the percentage of the value in the
fixed maturity option that you are withdrawing. Any withdrawal charges that are
deducted from a fixed maturity option will result in a market value adjustment
calculated in the same way. See Appendix II at the end of this Prospectus for
an example.
For purposes of calculating the rate to maturity for new allocations to a fixed
maturity option (see (1)(c) above), we use the rate we have in effect for new
allocations to that fixed maturity option. We use this rate even if new
allocations to that option would not be accepted at that time. This rate will
not be less than 3%. If we do not have a rate to maturity in effect for a fixed
maturity option to which the "current rate to maturity" in (1)(c) above would
apply, we will use the rate at the next closest maturity date. If we are no
longer offering new fixed maturity options, the "current rate to maturity" will
be determined in accordance with our procedures then in effect. We reserve the
right to add up to 0.50% to the current rate in (1)(c) above for purposes of
calculating the market value adjustment only.
INVESTMENTS UNDER THE FIXED MATURITY OPTIONS
Amounts allocated to the fixed maturity options are held in a "nonunitized"
separate account we have established under the New York Insurance Law. This
separate account provides an additional measure of assurance that we will make
full payment of amounts due under the fixed maturity options. Under New York
Insurance Law, the portion of the separate account's assets equal to the
reserves and other contract liabilities relating to the contracts are not
chargeable with liabilities from any other business we may conduct. We own the
assets of the separate account, as well as any favorable investment performance
on those assets. You do not participate in the performance of the assets held
in this separate account. We may, subject to state law that applies, transfer
all assets allocated to the separate account to our general account. We
guarantee all benefits relating to your value in the fixed maturity options,
regardless of whether assets supporting fixed maturity options are held in a
separate account or our general account.
We have no specific formula for establishing the rates to maturity for the
fixed maturity options. We expect the rates to be influenced by, but not
necessarily correspond to, among other things, the yields that we can expect to
realize on the separate account's investments from time to time. Our current
plans are to invest in fixed-income obligations, including corporate bonds,
mortgage-backed and asset-backed securities and government and agency issues
having durations in the aggregate consistent with those of the fixed maturity
options.
Although the above generally describes our plans for investing the assets
supporting our obligations under the fixed maturity options under the
contracts, we are not obligated to invest those assets according to any
particular plan except as we may be required to by state insurance laws. We
will not determine the rates to maturity we establish by the performance of the
nonunitized separate account.
ABOUT THE GENERAL ACCOUNT
Our general account supports all of our policy and contract guarantees,
including those that apply to the fixed maturity options, as well as our
general obligations.
The general account is subject to regulation and supervision by the Insurance
Department of the State of New York and to the insurance laws and regulations
of all jurisdictions where we are authorized to do business. Because of
exemptions and exclusionary provisions that apply, interests in the general
account have not been registered under the Securities Act of 1933, nor is the
general account an investment company under the Investment Company Act of 1940.
However, the market value adjustment interests under the contracts are
registered under the Securities Act of 1933.
We have been advised that the staff of the SEC has not reviewed the portions of
this prospectus that relate to the general account (other than market value
adjustment interests). The disclosure with regard to
48 More information
the general account, however, may be subject to certain provisions of the
federal securities laws relating to the accuracy and completeness of statements
made in prospectuses.
ABOUT OTHER METHODS OF PAYMENT
AUTOMATIC INVESTMENT PROGRAM -- FOR NQ, TRADITIONAL IRA, AND ROTH IRA CONTRACTS
You may use our automatic investment program, or "AIP," to have a specified
amount automatically deducted from a checking account, money market account, or
credit union checking account and contributed as an additional contribution
into an NQ, Traditional IRA, or Roth IRA contract on a monthly basis.
Contributions to all forms of IRAs are subject to the limitations and
requirements discussed in "Tax Information" earlier in this Prospectus.
AIP additional contributions may be allocated to any of the variable investment
options but not the fixed maturity options. Our minimum contribution amount
requirement is $20. You choose the day of the month you wish to have your
account debited. However, you may not choose a date later than the 28th day of
the month.
You may cancel AIP at any time by notifying our processing office. We are not
responsible for any debits made to your account before the time written notice
of cancellation is received at our processing office.
PAYROLL DEDUCTION PROGRAM. You can authorize your employer to remit your NQ,
IRA and Roth IRA contributions to us if your employer has a payroll deduction
program. Those contributions are still your contributions, not your employer's.
WIRE TRANSFERS. You may also send your contributions by wire transfer from your
bank.
DATES AND PRICES AT WHICH CONTRACT EVENTS OCCUR
We describe below the general rules for when, and at what prices, events under
your contract will occur. Other portions of this prospectus describe
circumstances that may cause exceptions. We generally do not repeat those
exceptions below.
BUSINESS DAY
Our business day is generally any day on which the New York Stock Exchange is
open for trading. A business day does not include any day we choose not to open
due to emergency conditions. We may also close early due to emergency
conditions. Our business day generally ends at 4:00 p.m., Eastern Time for
purposes of determining the date when contributions are applied and any other
transaction requests are processed. Contributions will be applied and any other
transaction requests will be processed when they are received along with all
the required information unless another date applies as indicated below.
o If your contribution, transfer, or any other transaction request, containing
all the required information, reaches us on a non-business day or after 4:00
p.m., Eastern Time on a business day, we will use the next business day.
o When a charge is to be deducted on a contract date anniversary that is a
non-business day, we will deduct the charge on the next business day.
o Quarterly rebalancing will be processed on a calendar year basis and
semiannual or annual rebalancing will be processed on the first business day
of the month. Rebalancing will not be done retroactively.
CONTRIBUTIONS AND TRANSFERS
o Contributions allocated to the variable investment options are invested at
the unit value next determined after the close of the business day.
o Contributions allocated to a fixed maturity option will receive the rate to
maturity in effect for that fixed maturity option on that business day.
o If a fixed maturity option is scheduled to mature on June 15th and June 15th
is a non-business day, that fixed maturity option will mature on the prior
business day.
o Transfers to or from variable investment options will be made at the unit
value next determined after the close of the business day.
o Transfers to a fixed maturity option will receive the rate to maturity in
effect for that fixed maturity option on that business day.
o Transfers out of a fixed maturity option will be at the market adjusted
amount on that business day.
o For general dollar-cost averaging, the first monthly transfer will occur on
the last business day of the month in which we receive your election form at
our processing office.
ABOUT YOUR VOTING RIGHTS
As the owner of shares of the Trusts we have the right to vote on certain
matters involving the portfolios, such as:
o the election of trustees; or
o the formal approval of independent auditors selected for each Trust; or
o any other matters described in the prospectus for each Trust or requiring a
shareholders' vote under the Investment Company Act of 1940.
We will give contract owners the opportunity to instruct us how to vote the
number of shares attributable to their contracts if a shareholder vote is
taken. If we do not receive instructions in time from all contract owners, we
will vote the shares of a portfolio for which no instructions have been
received in the same proportion as we vote shares of that portfolio for which
we have received instructions. We will also vote any shares that we are
entitled to vote directly because of amounts we have in a portfolio in the same
proportions that contract owners vote.
VOTING RIGHTS OF OTHERS
Currently, we control the Trusts. Their shares are sold to our separate
accounts and an affiliated qualified plan trust. In addition, shares of the
Trusts are held by separate accounts of insurance companies unaffiliated with
us. Shares held by these separate accounts will probably be voted according to
the instructions of the owners of insurance poli-
More information 49
cies and contracts issued by those insurance companies. While this will dilute
the effect of the voting instructions of the contract owners, we currently do
not foresee any disadvantages because of this. The Board of Trustees of each
Trust intends to monitor events in order to identify any material
irreconcilable conflicts that may arise and to determine what action, if any,
should be taken in response. If we believe that a response to any of those
events insufficiently protects our contract owners, we will see to it that
appropriate action is taken.
SEPARATE ACCOUNT A VOTING RIGHTS
If actions relating to Separate Account A require contract owner approval,
contract owners will be entitled to one vote for each unit they have in the
variable investment options. Each contract owner who has elected a variable
annuity payout option may cast the number of votes equal to the dollar amount
of reserves we are holding for that annuity in a variable investment option
divided by the annuity unit value for that option. We will cast votes
attributable to any amounts we have in the variable investment options in the
same proportion as votes cast by contract owners.
CHANGES IN APPLICABLE LAW
The voting rights we describe in this prospectus are created under applicable
federal securities laws. To the extent that those laws or the regulations
published under those laws eliminate the necessity to submit matters for
approval by persons having voting rights in separate accounts of insurance
companies, we reserve the right to proceed in accordance with those laws or
regulations.
ABOUT LEGAL PROCEEDINGS
Equitable Life and its affiliates are parties to various legal proceedings. In
our view, none of these proceedings is likely to have a material adverse effect
upon Separate Account A, our ability to meet our obligations under the
contracts, or the distribution of the contracts.
ABOUT OUR INDEPENDENT ACCOUNTANTS
The consolidated financial statements of Equitable Life at December 31, 2001
and 2000, and for the three years ended December 31, 2001, incorporated in this
prospectus by reference to the 2001 Annual Report on Form 10-K, are
incorporated in reliance on the report of PricewaterhouseCoopers LLP,
independent accountants, given on the authority of said firm as experts in
auditing and accounting.
FINANCIAL STATEMENTS
The financial statements of Separate Account A, as well as the consolidated
financial statements of Equitable Life, are in the SAI. The SAI is available
free of charge. You may request one by writing to our processing office or
calling 1-800-628-6673.
TRANSFERS OF OWNERSHIP, COLLATERAL ASSIGNMENTS, LOANS, AND BORROWING
You can transfer ownership of an NQ contract at any time before annuity
payments begin. We will continue to treat you as the owner until we receive
written notification of any change at our processing office. You cannot assign
your NQ contract as collateral or security for a loan. Loans are also not
available under your NQ contract. In some cases, an assignment or change of
ownership may have adverse tax consequences. See "Tax information" earlier in
this Prospectus.
You cannot assign or transfer ownership of a Traditional IRA or Roth IRA
contract except by surrender to us. Loans are not available and you cannot
assign Traditional IRA and Roth IRA contracts as security for a loan or other
obligation.
For limited transfers of ownership after the owner's death see "Beneficiary
continuation option" in "Payment of death benefit" earlier in this Prospectus.
You may direct the transfer of the values under your Traditional IRA or Roth
IRA contract to another similar arrangement under federal income tax rules. In
the case of such a transfer, which involves a surrender of your contract, we
will impose a withdrawal charge if one applies.
DISTRIBUTION OF THE CONTRACTS
AXA Advisors, LLC ("AXA Advisors"), the successor to Equitable Financial
Consultants, Inc., and an affiliate of Equitable Life, is the distributor of
the contracts and has responsibility for sales and marketing functions for
Separate Account A. AXA Advisors serves as the principal underwriter of
Separate Account A. AXA Advisors is registered with the SEC as a broker-dealer
and is a member of the National Association of Securities Dealers, Inc. AXA
Advisors' principal business address is 1290 Avenue of the Americas, New York,
NY 10104.
The contracts are sold by financial professionals who are registered
representatives of AXA Advisors and its affiliates, who are also our licensed
insurance agents. AXA Advisors may also receive compensation and reimbursement
for its marketing services under the terms of its distribution agreement with
Equitable Life. The offering of the contracts is intended to be continuous.
50 More information
9. Investment performance
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The table below shows the average annual total return of the variable
investment options. Average annual total return is the annual rate of growth
that would be necessary to achieve the ending value of a contribution invested
in the variable investment options for the periods shown.
The table takes into account all fees and charges under the contract, including
the withdrawal charge and the annual administrative charge but does not reflect
the charges designed to approximate certain taxes that may be imposed on us,
such as premium taxes in your state or any applicable annuity administrative
fee.
The results shown under "Length of option period" are based on the actual
historical investment experience of each variable investment option since its
inception. The results shown under "Length of portfolio period" include some
periods when a variable investment option investing in the Portfolio had not
yet commenced operations. For those periods, we have adjusted the results of
the portfolios to reflect the charges under the contracts that would have
applied had the investment option been available.
For the "EQ/Alliance" portfolios (other than EQ/Alliance Premier Growth and
EQ/Alliance Technology), we have adjusted the results prior to October 1996,
when Class IB/B shares for these portfolios were not available, to reflect the
12b-1 fees currently imposed. The results shown for the EQ/Alliance Money
Market, EQ/Balanced, EQ/Alliance Common Stock and EQ/Aggressive Stock options
for periods before those options were operated as part of a unit investment
trust reflect the results of the separate accounts that preceded them. The
"Since portfolio inception" figures for these options are based on the date of
inception of the preceding separate accounts. We have adjusted these results to
reflect the fee and expense structure in effect for Separate Account A as a
unit investment trust. See "The reorganization" in the SAI for additional
information.
EQ Advisors Trust commenced operations on May 1, 1997. For periods prior to
October 18, 1999, the EQ/Alliance portfolios (other than EQ/Alliance Premier
Growth and EQ/Alliance Technology) were part of The Hudson River Trust. On
October 18, 1999, those portfolios became corresponding portfolios of EQ
Advisors Trust. In each case, the performance shown is for the indicated EQ
Advisors Trust portfolio and any predecessors that it may have had.
AXA Premier VIP Trust commenced operations on December 31, 2001 and performance
information for these portfolios is not available as of the date of this
prospectus.
All rates of return presented are time-weighted and include reinvestment of
investment income, including interest and dividends.
THE PERFORMANCE INFORMATION SHOWN BELOW AND THE PERFORMANCE INFORMATION THAT WE
ADVERTISE REFLECT PAST PERFORMANCE AND DO NOT INDICATE HOW THE VARIABLE
INVESTMENT OPTIONS MAY PERFORM IN THE FUTURE. SUCH INFORMATION ALSO DOES NOT
REPRESENT THE RESULTS EARNED BY ANY PARTICULAR INVESTOR. YOUR RESULTS WILL
DIFFER.
Investment performance 51
TABLE
AVERAGE ANNUAL TOTAL RETURN UNDER A CONTRACT SURRENDERED ON DECEMBER 31, 2001
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LENGTH OF OPTION PERIOD
-----------------------------------------------------------
SINCE
OPTION
VARIABLE INVESTMENT OPTIONS 1 YEAR 5 YEARS 10 YEARS INCEPTION+*
- -----------------------------------------------------------------------------------------------------------
EQ/Aggressive Stock (32.94)% (6.69)% 1.18% 8.56%
- -----------------------------------------------------------------------------------------------------------
EQ/Alliance Common Stock (18.66)% 7.03% 10.20% 12.46%
- -----------------------------------------------------------------------------------------------------------
EQ/Alliance Global (28.08)% 0.92% -- 4.46%
- -----------------------------------------------------------------------------------------------------------
EQ/Alliance Growth and Income (9.55)% 11.39% -- 11.62%
- -----------------------------------------------------------------------------------------------------------
EQ/Alliance Growth Investors (20.52)% 4.45% -- 6.27%
- -----------------------------------------------------------------------------------------------------------
EQ/Alliance Intermediate Government Securities (0.22)% 2.99% -- 2.93%
- -----------------------------------------------------------------------------------------------------------
EQ/Alliance International (31.09)% (6.31)% -- (3.46)%
- -----------------------------------------------------------------------------------------------------------
EQ/Alliance Money Market (4.50)% 1.68% 1.25% 3.81%
- -----------------------------------------------------------------------------------------------------------
EQ/Alliance Premier Growth (31.74)% -- -- (17.79)%
- -----------------------------------------------------------------------------------------------------------
EQ/Alliance Quality Bond (0.09)% 3.60% -- 3.19%
- -----------------------------------------------------------------------------------------------------------
EQ/Alliance Small Cap Growth (21.13)% -- -- 3.97%
- -----------------------------------------------------------------------------------------------------------
EQ/Alliance Technology (32.22)% -- -- (32.81)%
- -----------------------------------------------------------------------------------------------------------
EQ/AXP New Dimensions (23.38)% -- -- (28.96)%
- -----------------------------------------------------------------------------------------------------------
EQ/AXP Strategy Aggressive (41.15)% -- -- (54.52)%
- -----------------------------------------------------------------------------------------------------------
EQ/Balanced (10.11)% 6.02% 4.37% 7.38%
- -----------------------------------------------------------------------------------------------------------
EQ/Bernstein Diversified Value (4.96)% -- -- (4.56)%
- -----------------------------------------------------------------------------------------------------------
EQ/Calvert Socially Responsible -- -- -- 0.12%
- -----------------------------------------------------------------------------------------------------------
EQ/Capital Guardian International (28.70)% -- -- (3.06)%
- -----------------------------------------------------------------------------------------------------------
EQ/Capital Guardian Research (10.02)% -- -- 0.65%
- -----------------------------------------------------------------------------------------------------------
EQ/Capital Guardian U.S. Equity (10.01)% -- -- ( 2.30)%
- -----------------------------------------------------------------------------------------------------------
EQ/Emerging Markets Equity (13.13)% -- -- (14.05)%
- -----------------------------------------------------------------------------------------------------------
EQ/Equity 500 Index (20.06)% 7.27% -- 11.83%
- -----------------------------------------------------------------------------------------------------------
EQ/Evergreen Omega (24.86)% -- -- (14.84)%
- -----------------------------------------------------------------------------------------------------------
EQ/FI Mid Cap (21.30)% -- -- (15.58)%
- -----------------------------------------------------------------------------------------------------------
EQ/FI Small/Mid Cap Value (4.07)% -- -- (1.21)%
- -----------------------------------------------------------------------------------------------------------
EQ/High Yield (7.34)% (3.79)% -- 1.58%
- -----------------------------------------------------------------------------------------------------------
EQ/Janus Large Cap Growth (30.75)% -- -- (33.45)%
- -----------------------------------------------------------------------------------------------------------
EQ/Lazard Small Cap Value 9.53% -- -- (3.38)%
- -----------------------------------------------------------------------------------------------------------
EQ/Mercury Basic Value Equity (2.55)% -- -- 9.34%
- -----------------------------------------------------------------------------------------------------------
EQ/MFS Emerging Growth Companies (41.73)% -- -- 4.99%
- -----------------------------------------------------------------------------------------------------------
EQ/MFS Investors Trust (23.84)% -- -- (9.84)%
- -----------------------------------------------------------------------------------------------------------
EQ/MFS Research (29.62)% -- -- 1.55%
- -----------------------------------------------------------------------------------------------------------
EQ/Putnam Growth & Income Value (14.76)% -- -- 1.13%
- -----------------------------------------------------------------------------------------------------------
EQ/Putnam International Equity (29.33)% -- -- (2.88)%
- -----------------------------------------------------------------------------------------------------------
EQ/Putnam Voyager (32.23)% -- -- (2.99)%
- -----------------------------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------------------
LENGTH OF PORTFOLIO PERIOD
-----------------------------------------------------------
SINCE
PORTFOLIO
VARIABLE INVESTMENT OPTIONS 3 YEARS 5 YEARS 10 YEARS INCEPTION+**
- -----------------------------------------------------------------------------------------------------------
EQ/Aggressive Stock (12.68)% (6.69)% 1.18% 8.56%
- -----------------------------------------------------------------------------------------------------------
EQ/Alliance Common Stock (5.36)% 7.03% 10.20% 9.47%
- -----------------------------------------------------------------------------------------------------------
EQ/Alliance Global (7.65)% 0.92% 6.00% 6.03%
- -----------------------------------------------------------------------------------------------------------
EQ/Alliance Growth and Income 4.74% 11.39% -- 10.73%
- -----------------------------------------------------------------------------------------------------------
EQ/Alliance Growth Investors (2.87)% 4.45% 6.28% 9.62%
- -----------------------------------------------------------------------------------------------------------
EQ/Alliance Intermediate Government Securities 1.92% 2.99% 2.66% 3.42%
- -----------------------------------------------------------------------------------------------------------
EQ/Alliance International (10.95)% (6.31)% -- (2.39)%
- -----------------------------------------------------------------------------------------------------------
EQ/Alliance Money Market 1.17% 1.68% 1.25% 3.81%
- -----------------------------------------------------------------------------------------------------------
EQ/Alliance Premier Growth -- -- -- (15.42)%
- -----------------------------------------------------------------------------------------------------------
EQ/Alliance Quality Bond 1.96% 3.60% -- 2.54%
- -----------------------------------------------------------------------------------------------------------
EQ/Alliance Small Cap Growth 4.50% -- -- 6.41%
- -----------------------------------------------------------------------------------------------------------
EQ/Alliance Technology -- -- -- (29.99)%
- -----------------------------------------------------------------------------------------------------------
EQ/AXP New Dimensions -- -- -- (28.96)%
- -----------------------------------------------------------------------------------------------------------
EQ/AXP Strategy Aggressive -- -- -- (54.52)%
- -----------------------------------------------------------------------------------------------------------
EQ/Balanced 0.62% 6.02% 4.37% 7.38%
- -----------------------------------------------------------------------------------------------------------
EQ/Bernstein Diversified Value (2.20)% -- -- 2.66%
- -----------------------------------------------------------------------------------------------------------
EQ/Calvert Socially Responsible -- -- -- (9.35)%
- -----------------------------------------------------------------------------------------------------------
EQ/Capital Guardian International -- -- -- (8.10)%
- -----------------------------------------------------------------------------------------------------------
EQ/Capital Guardian Research -- -- -- 0.08%
- -----------------------------------------------------------------------------------------------------------
EQ/Capital Guardian U.S. Equity -- -- -- (2.08)%
- -----------------------------------------------------------------------------------------------------------
EQ/Emerging Markets Equity 0.00% -- -- (14.05)%
- -----------------------------------------------------------------------------------------------------------
EQ/Equity 500 Index (5.53)% 7.27% -- 11.28%
- -----------------------------------------------------------------------------------------------------------
EQ/Evergreen Omega -- -- -- --
- -----------------------------------------------------------------------------------------------------------
EQ/FI Mid Cap -- -- -- (15.58)%
- -----------------------------------------------------------------------------------------------------------
EQ/FI Small/Mid Cap Value 0.01% -- -- 0.36%
- -----------------------------------------------------------------------------------------------------------
EQ/High Yield (8.02)% (3.79)% 4.26% 4.57%
- -----------------------------------------------------------------------------------------------------------
EQ/Janus Large Cap Growth -- -- -- (33.45)%
- -----------------------------------------------------------------------------------------------------------
EQ/Lazard Small Cap Value 9.07% -- -- 3.99%
- -----------------------------------------------------------------------------------------------------------
EQ/Mercury Basic Value Equity 8.63% -- -- 10.95%
- -----------------------------------------------------------------------------------------------------------
EQ/MFS Emerging Growth Companies (6.32)% -- -- 6.93%
- -----------------------------------------------------------------------------------------------------------
EQ/MFS Investors Trust -- -- -- --
- -----------------------------------------------------------------------------------------------------------
EQ/MFS Research (6.98)% -- -- 3.03%
- -----------------------------------------------------------------------------------------------------------
EQ/Putnam Growth & Income Value (4.44)% -- -- 2.31%
- -----------------------------------------------------------------------------------------------------------
EQ/Putnam International Equity (0.33)% -- -- 5.19%
- -----------------------------------------------------------------------------------------------------------
EQ/Putnam Voyager (10.99)% -- -- 3.92%
- -----------------------------------------------------------------------------------------------------------
+ Unannualized (including Since Inception values if time since inception is
less than one year)
* The variable investment option inception dates are: EQ/Aggressive Stock and
EQ/Balanced (1/27/86); EQ/Alliance Money Market (7/31/81); EQ/Alliance
Common Stock (8/27/81); EQ/Equity 500 Index (6/1/94); EQ/Alliance Global,
EQ/Alliance Growth and Income, EQ/Alliance Growth Investors, EQ/Alliance
Quality Bond and EQ/High Yield (1/4/94); EQ/Alliance Intermediate Government
Securities (6/1/94); EQ/Alliance International (9/1/95); EQ/Alliance Small
Cap Growth, EQ/MFS Emerging Growth Companies, EQ/MFS Research, EQ/Mercury
Basic Value Equity, EQ/Putnam Growth & Income Value, EQ/FI Small/Mid Cap
Value (6/2/97); EQ/Emerging Markets Equity (8/20/97); EQ/Evergreen Omega,
EQ/MFS Investors Trust, EQ/Alliance Premier Growth, EQ/Capital Guardian U.S.
Equity, EQ/Capital Guardian International, EQ/Capital Guardian Research,
EQ/Bernstein Diversified Value, EQ/Lazard Small Cap Value, EQ/Putnam
International Equity, EQ/Putnam Voyager (8/30/99); EQ/Calvert
Socially Responsible (9/1/99); EQ/Alliance Technology (5/22/00); EQ/Janus
Large Cap Growth, EQ/FI Mid Cap, EQ/AXP New Dimensions and EQ/AXP Strategy
Aggressive (9/1/00); EQ/Marsico Focus (10/22/01); AXA Premier VIP Large Cap
Growth, AXA Premier VIP Large Cap Core Equity, AXA Premier VIP Large Cap
Value, AXA Premier VIP Small/Mid Cap Growth, AXA Premier VIP Small/Mid Cap
Value, AXA Premier VIP International Equity, AXA Premier VIP Technology, AXA
Premier VIP Health Care, AXA Premier VIP Core Bond, EQ/International Equity
Index, EQ/J.P. Morgan Core Bond and EQ/Small Company Index (January 14,
2002). No performance information is provided for portfolios and/or variable
investment options with inception dates after December 31, 2000.
** The inception dates for the portfolios underlying the Alliance variable
investment options shown in the tables are for portfolios of The Hudson
River Trust, the assets of which became assets of corresponding portfolios
of EQ Advisors Trust on 10/18/99. The portfolio inception dates are:
EQ/Aggressive Stock and EQ/Balanced (1/27/86); EQ/Alliance Common Stock
(1/13/76); EQ/Equity 500 Index (3/1/94); EQ/Alliance Global (8/27/87);
EQ/Alliance Growth and Income (10/1/93); EQ/Alliance Growth Investors
(10/2/89); EQ/High Yield (1/2/87); EQ/Alliance International (4/3/95);
EQ/Alliance Money Market (7/13/81); EQ/Alliance Intermediate Government
Securities (4/1/91); EQ/Alliance Quality Bond (10/1/93); EQ/Alliance Small
Cap Growth, EQ/MFS Research, EQ/Mercury Basic Value Equity, EQ/Putnam Growth
& Income Value, EQ/FI Small/Mid Cap Value, EQ/Putnam International Equity
and
52 Investment performance
EQ/Putnam Voyager (5/1/97); EQ/Emerging Markets Equity (8/20/97);
EQ/Evergreen Omega and EQ/MFS Investors Trust (1/1/99); EQ/Bernstein
Diversified Value, EQ/International Equity Index, EQ/J.P. Morgan Core Bond,
EQ/Lazard Small Cap Value and EQ/Small Company Index (1/1/98); EQ/MFS
Emerging Growth Companies (5/1/97); EQ/Alliance Premier Growth, EQ/Capital
Guardian International, EQ/Capital Guardian Research and EQ/Capital Guardian
U.S. Equity (5/1/99); EQ/Calvert Socially Responsible (9/1/ 99); EQ/Alliance
Technology (5/1/00); EQ/Janus Large Cap Growth, EQ/FI Mid Cap, EQ/AXP New
Dimensions and EQ/AXP Strategy Aggressive (9/1/00); EQ/Marsico Focus (August
31, 2001); AXA Premier VIP Large Cap Growth, AXA Premier VIP Large Cap Core
Equity, AXA Premier VIP Large Cap Value, AXA Premier VIP Small/Mid Cap
Growth, AXA Premier VIP Small/Mid Cap Value, AXA Premier VIP International
Equity, AXA Premier VIP Healthcare, AXA Premier VIP Core Bond and AXA
Premier VIP Technology (December 31, 2001). No performance information is
provided for portfolios and/or variable investment options with inception
dates after December 31, 2000.
Investment performance 53
COMMUNICATING PERFORMANCE DATA
In reports or other communications to contract owners or in advertising
material, we may describe general economic and market conditions affecting our
variable investment options, and the portfolios and may compare the performance
or ranking of those options and the portfolios with:
o those of other insurance company separate accounts or mutual funds included
in the rankings prepared by Lipper Analytical Services, Inc., Morningstar,
Inc., VARDS, or similar investment services that monitor the performance of
insurance company separate accounts or mutual funds;
o other appropriate indices of investment securities and averages for peer
universes of mutual funds; or
o data developed by us derived from such indices or averages.
We also may furnish to present or prospective contract owners advertisements or
other communications that include evaluations of a variable investment option
or portfolio by nationally recognized financial publications. Examples of such
publications are:
- --------------------------------------------------------------------------------
Barron's
Money Management Letter
Morningstar's Variable Annuity
Sourcebook
Investment Dealers Digest
National Underwriter
Business Week
Pension & Investments
Forbes
USA Today
Fortune
Investor's Business Daily
Institutional Investor
The New York Times
Money
The Wall Street Journal
Kiplinger's Personal Finance
The Los Angeles Times
Financial Planning
The Chicago Tribune
Investment Adviser
Investment Management Weekly
- --------------------------------------------------------------------------------
From time to time, we may also advertise different measurements of the
investment performance of the variable investment options and/or the
portfolios, including the measurements that compare the performance to market
indices that serve as benchmarks. Market indices are not subject to any charges
for investment advisory fees brokerage commission or other operating expenses
typically associated with a managed portfolio. Also, they do not reflect other
contract charges such as the mortality and expense risks charge, administrative
charge or any withdrawal charge. Comparisons with these benchmarks, therefore,
may be of limited use. We use them because they are widely known and may help
you to understand the universe of securities from which each portfolio is
likely to select its holdings.
Lipper compiles performance data for peer universes of funds with similar
investment objectives in its Lipper Survey. Morningstar, Inc. compiles similar
data in the Morningstar Variable Annuity/Life Report (Morningstar Report).
The Lipper Survey records performance data as reported to it by over 800 mutual
funds underlying variable annuity and life insurance products. It divides these
actively managed Portfolios into 25 categories by portfolio objectives.
According to Lipper , the data are presented net of investment management fees,
direct operating expenses and asset-based charges applicable under annuity
contracts. Lipper data provide a more accurate picture than market benchmarks
of the EQUI-VEST(R) Express(SM) performance relative to other variable annuity
products. The
Lipper Survey contains two different universes, which reflect different types
of fees in performance data:
o The "separate account" universe reports performance data net of investment
management fees, direct operating expenses and asset-based charges
applicable under variable life and annuity contracts; and
o The "mutual fund" universe reports performance net only of investment
management fees and direct operating expenses, and, therefore, reflects only
charges that relate to the underlying mutual fund.
The Morningstar Variable Annuity/Life Report consists of nearly 700 variable
life and annuity funds, all of which report their data net of investment
management fees, direct operating expenses and separate account level charges.
VARDS is a monthly reporting service that monitors approximately 2,500 variable
life and variable annuity funds on performance and account information.
YIELD INFORMATION
Current yield for the EQ/Alliance Money Market option will be based on net
changes in a hypothetical investment over a given seven-day period, exclusive
of capital changes, and then "annualized" (assuming that the same seven-day
result would occur each week for 52 weeks). Current yield for the EQ/Alliance
Quality Bond and EQ/High Yield options will be based on net changes in a
hypothetical investment over a given 30-day period, exclusive of capital
changes, and then "annualized" (assuming that the same 30-day result would
occur each month for 12 months).
"Effective yield" is calculated in a similar manner, but when annualized, any
income earned by the investment is assumed to be reinvested. The "effective
yield" will be slightly higher than the "current yield" because any earnings
are compounded weekly for the EQ/Alliance Money Market option. The current
yields and effective yields assume the deduction of all current contract
charges and expenses other than the annual administrative charge, withdrawal
charge, and any charge designed to approximate certain taxes that may be
imposed on us, such as premium taxes in your state. For more information, see
"EQ/Alliance Money Market option yield information" and "Other yield
information" in the SAI.
54 Investment performance
10. Incorporation of certain documents by reference
- --------------------------------------------------------------------------------
Equitable Life's Annual Report on Form 10-K, for the year ended December 31,
2001, is considered to be a part of this prospectus because it is incorporated
by reference.
After the date of this prospectus and before we terminate the offering of the
securities under this prospectus, all documents or reports we file with the SEC
under the Securities Exchange Act of 1934 ("Exchange Act"), will be considered
to become part of this prospectus because they are incorporated by reference.
Any statement contained in a document that is, or becomes part of this
prospectus, will be considered changed or replaced for purposes of this
prospectus if a statement contained in this prospectus changes or is replaced.
Any statement that is considered to be a part of this prospectus because of its
incorporation will be considered changed or replaced for the purpose of this
prospectus if a statement contained in any other subsequently filed document
that is considered to be part of this prospectus changes or replaces that
statement. After that, only the statement that is changed or replaced will be
considered to be part of this prospectus.
We file our Exchange Act documents and reports, including our Annual Report on
Form 10-K and Quarterly Reports on Form 10-Q, electronically according to EDGAR
under CIK No. 0000727920. The SEC maintains a Web site that contains reports,
proxy and information statements and other information regarding registrants
that file electronically with the SEC. The address of the site is
http://www.sec.gov.
Upon written or oral request, we will provide, free of charge, to each person
to whom this prospectus is delivered a copy of any or all of the documents
considered to be part of this prospectus because they are incorporated herein.
This does not include exhibits not specifically incorporated by reference into
the text of such documents. Requests for documents should be directed to The
Equitable Life Assurance Society of the United States, 1290 Avenue of the
Americas, New York, New York 10104. Attention: Corporate Secretary (telephone:
(212) 554-1234).
Incorporation of certain documents by reference 55
(This page intentionally left blank)
Appendix I: Condensed financial information
- --------------------------------------------------------------------
THE UNIT VALUES AND NUMBERS OF UNITS OUTSTANDING SHOWN BELOW ARE FOR CONTRACTS OFFERED UNDER SEPARATE ACCOUNT A WITH THE SAME DAILY
ASSET CHARGE OF 0.95%. UNIT VALUES AND NUMBER OF UNITS OUTSTANDING AT YEAR END FOR EACH VARIABLE INVESTMENT OPTION, EXCEPT FOR THOSE
OPTIONS OFFERED FOR THE FIRST TIME ON OR AFTER DECEMBER 31, 2001.
- ------------------------------------------------------------------------------------------------------------------------------------
FOR THE YEARS ENDING DECEMBER 31,
1999 2000 2001
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/AGGRESSIVE STOCK
- ------------------------------------------------------------------------------------------------------------------------------------
Unit value $ 112.33 $ 96.42 $ 71.46
Number of units outstanding (000's) 3 28 33
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/ALLIANCE COMMON STOCK
- ------------------------------------------------------------------------------------------------------------------------------------
Unit value $ 111.02 $ 94.30 $ 83.37
Number of units outstanding (000's) 25 296 387
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/ALLIANCE GLOBAL
- ------------------------------------------------------------------------------------------------------------------------------------
Unit value $ 119.52 $ 96.06 $ 75.87
Number of units outstanding (000's) 9 109 162
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/ALLIANCE GROWTH AND INCOME
- ------------------------------------------------------------------------------------------------------------------------------------
Unit value $ 103.87 $ 111.81 $ 109.04
Number of units outstanding (000's) 14 145 300
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/ALLIANCE GROWTH INVESTORS
- ------------------------------------------------------------------------------------------------------------------------------------
Unit value $ 112.30 $ 103.52 $ 89.58
Number of units outstanding (000's) 10 101 133
- ------------------------------------------------------------------------------------------------------------------------------------
ALLIANCE INTERMEDIATE GOVERNMENT SECURITIES
- ------------------------------------------------------------------------------------------------------------------------------------
Unit value $ 100.40 $ 108.29 $ 115.71
Number of units outstanding (000's) 3 10 68
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/ALLIANCE INTERNATIONAL
- ------------------------------------------------------------------------------------------------------------------------------------
Unit value $ 126.71 $ 96.46 $ 73.27
Number of units outstanding (000's) 1 33 48
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/ALLIANCE MONEY MARKET
- ------------------------------------------------------------------------------------------------------------------------------------
Unit value $ 101.49 $ 106.56 $ 109.30
Number of units outstanding (000's) 43 139 270
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/ALLIANCE PREMIER GROWTH
- ------------------------------------------------------------------------------------------------------------------------------------
Unit value $ 116.53 $ 94.20 $ 70.94
Number of units outstanding (000's) 21 242 305
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/ALLIANCE QUALITY BOND
- ------------------------------------------------------------------------------------------------------------------------------------
Unit value $ 99.28 $ 109.43 $ 117.07
Number of units outstanding (000's) 4 26 113
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/ALLIANCE SMALL CAP GROWTH
- ------------------------------------------------------------------------------------------------------------------------------------
Unit value $ 130.79 $ 147.23 $ 126.52
Number of units outstanding (000's) 1 63 129
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/ALLIANCE TECHNOLOGY
- ------------------------------------------------------------------------------------------------------------------------------------
Unit value -- $ 66.29 $ 49.61
Number of units outstanding (000's) -- 92 168
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/AXP NEW DIMENSIONS
- ------------------------------------------------------------------------------------------------------------------------------------
Unit value -- $ 82.97 $ 69.43
Number of units outstanding (000's) -- 2 14
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/AXP STRATEGY AGGRESSIVE
- ------------------------------------------------------------------------------------------------------------------------------------
Unit value -- $ 62.20 $ 40.99
Number of units outstanding (000's) -- 5 28
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/BALANCED
- ------------------------------------------------------------------------------------------------------------------------------------
Unit value $ 108.71 $ 105.98 $ 102.76
Number of units outstanding (000's) 2 34 136
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/BERNSTEIN DIVERSIFIED VALUE
- ------------------------------------------------------------------------------------------------------------------------------------
Unit value -- -- $ 101.04
Number of units outstanding (000's) -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/CAPITAL GUARDIAN RESEARCH
- ------------------------------------------------------------------------------------------------------------------------------------
Unit value $ 106.94 $ 112.19 $ 108,87
Number of units outstanding (000's) -- 4 9
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/CAPITAL GUARDIAN U.S. EQUITY
- ------------------------------------------------------------------------------------------------------------------------------------
Unit value $ 101.79 $ 104.44 $ 101.37
Number of units outstanding (000's) -- 3 9
- ------------------------------------------------------------------------------------------------------------------------------------
Appendix I: Condensed financial information A-1
THE UNIT VALUES AND NUMBERS OF UNITS OUTSTANDING SHOWN BELOW ARE FOR CONTRACTS OFFERED UNDER SEPARATE ACCOUNT A WITH THE SAME DAILY
ASSET CHARGE OF 0.95%. UNIT VALUES AND NUMBER OF UNITS OUTSTANDING AT YEAR END FOR EACH VARIABLE INVESTMENT OPTION, EXCEPT FOR THOSE
OPTIONS OFFERED FOR THE FIRST TIME ON OR AFTER DECEMBER 31, 2001.
- ------------------------------------------------------------------------------------------------------------------------------------
FOR THE YEARS ENDING DECEMBER 31,
1999 2000 2001
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/EMERGING MARKETS EQUITY
- ------------------------------------------------------------------------------------------------------------------------------------
Unit value $ 147.71 $ 87.72 $ 82.40
Number of units outstanding (000's) 1 28 35
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/EQUITY 500 INDEX
- ------------------------------------------------------------------------------------------------------------------------------------
Unit value $ 106.17 $ 94.85 $ 82.52
Number of units outstanding (000's) 9 78 139
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/EVERGREEN OMEGA
- ------------------------------------------------------------------------------------------------------------------------------------
Unit value $ 106.73 $ 93.34 $ 76.72
Number of units outstanding (000's) -- 1 3
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/FI MID CAP
- ------------------------------------------------------------------------------------------------------------------------------------
Unit value -- $ 100.11 $ 85.86
Number of units outstanding (000's) -- 7 77
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/FI SMALL/MID CAP VALUE
- ------------------------------------------------------------------------------------------------------------------------------------
Unit value $ 106.09 $ 110.49 113.81
Number of units outstanding (000's) 1 13 105
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/HIGH YIELD
- ------------------------------------------------------------------------------------------------------------------------------------
Unit value $ 99.34 $ 89.64 $ 89.40
Number of units outstanding (000's) 4 23 51
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/JANUS LARGE CAP GROWTH
- ------------------------------------------------------------------------------------------------------------------------------------
Unit value -- $ 84.05 $ 64.14
Number of units outstanding (000's) -- 12 82
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/MARSICO FOCUS
- ------------------------------------------------------------------------------------------------------------------------------------
Unit value -- -- $ 106.00
Number of units outstanding (000's) -- -- 1
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/MERCURY BASIC VALUE EQUITY
- ------------------------------------------------------------------------------------------------------------------------------------
Unit value $ 97.22 $ 107.68 $ 112.55
Number of units outstanding (000's) 5 31 88
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/MFS EMERGING GROWTH COMPANIES
- ------------------------------------------------------------------------------------------------------------------------------------
Unit value $ 157.69 $ 126.78 $ 82.81
Number of units outstanding (000's) 17 181 204
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/MFS INVESTORS TRUST
- ------------------------------------------------------------------------------------------------------------------------------------
Unit value $ 104.63 $ 102.92 $ 85.65
Number of units outstanding (000's) 1 12 17
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/MFS RESEARCH
- ------------------------------------------------------------------------------------------------------------------------------------
Unit value $ 116.97 $ 109.77 $ 85.00
Number of units outstanding (000's) 3 56 69
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/PUTNAM GROWTH & INCOME VALUE
- ------------------------------------------------------------------------------------------------------------------------------------
Unit value $ 92.44 $ 97.78 $ 90.25
Number of units outstanding (000's) -- 6 13
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/T. ROWE PRICE INTERNATIONAL STOCK
- ------------------------------------------------------------------------------------------------------------------------------------
Unit value $ 123.90 $ 99.81 $ 77.28
Number of units outstanding (000's) 3 43 85
A-2 Appendix I: Condensed financial information
Appendix II: Market value adjustment example
- --------------------------------------------------------------------------------
The example below shows how the market value adjustment would be determined and
how it would be applied to a withdrawal, assuming that $100,000 had been
invested on June 14, 2003 to a fixed maturity option with a maturity date of
June 15, 2012 (i.e., nine years later) at a hypothetical rate to maturity of
7.00%, resulting in a maturity value at the maturity date of $183,846. We
further assume that a withdrawal of $50,000 is made four years later, on June
15, 2007.
- --------------------------------------------------------------------------------
HYPOTHETICAL ASSUMED
RATE TO MATURITY ON
JUNE 15, 2007
5.00% 9.00%
- --------------------------------------------------------------------------------
AS OF JUNE 15, 2007 (BEFORE WITHDRAWAL)
- --------------------------------------------------------------------------------
(1) Market adjusted amount $144,048 $ 119,487
- --------------------------------------------------------------------------------
(2) Fixed maturity amount $131,080 $ 131,080
- --------------------------------------------------------------------------------
(3) Market value adjustment: (1) - (2) $ 12,968 $ (11,593)
- --------------------------------------------------------------------------------
ON JUNE 15, 2007 (AFTER WITHDRAWAL)
- --------------------------------------------------------------------------------
(4) Portion of market value adjustment associated with withdrawal:
(3) x [$50,000/(1)] $ 4,501 $ (4,851)
- --------------------------------------------------------------------------------
(5) Reduction in fixed maturity amount: [$50,000 - (4)] $ 45,499 $ 54,851
- --------------------------------------------------------------------------------
(6) Fixed maturity amount: (2) - (5) $ 85,581 $ 76,229
- --------------------------------------------------------------------------------
(7) Maturity value $120,032 $ 106,915
- --------------------------------------------------------------------------------
(8) Market adjusted amount of (7) $ 94,048 $ 69,487
- --------------------------------------------------------------------------------
You should note that under this example if a withdrawal is made when rates have
increased from 7.00% to 9.00% (right column), a negative market value
adjustment is realized. On the other hand, if a withdrawal is made when rates
have decreased from 7.00% to 5.00% (left column), a positive market value
adjustment is realized.
Appendix II: Market value adjustment example B-1
(This page intentionally left blank)
Statement of additional information
- --------------------------------------------------------------------------------
TABLE OF CONTENTS
PAGE
Unit Values 2
Calculation of Annuity Payments 2
The Reorganization 3
Custodian and independent accountants 3
EQ/Alliance Money Market option yield information 3
Other yield information 4
Distribution of the Contracts 5
Financial Statements 5
How to obtain an EQUI-VEST(R) Express(SM) Statement of Additional Information
for Separate Account A
Call 1-800-628-6673 or send this request form to:
EQUI-VEST(R) Express(SM)
Processing Office
The Equitable Life
P.O. Box 2996
New York, NY 10116-2996
- --------------------------------------------------------------------------------
Please send me an EQUI-VEST(R) Express(SM) Statement of Additional Information
dated May 1, 2002.
(Combination variable and fixed deferred annuity)
- --------------------------------------------------------------------------------
Name
- --------------------------------------------------------------------------------
Address
- --------------------------------------------------------------------------------
City State Zip
888-1298 (5/02)
EQUI-VEST(R)
A combination variable and fixed deferred
annuity contract
PROSPECTUS DATED MAY 1, 2002
Please read and keep this prospectus for future reference. It contains
important information that you should know before purchasing or taking any
other action under your contract. Also, at the end of this prospectus, you will
find attached the prospectuses for each Trust, which contain important
information about their portfolios.
- --------------------------------------------------------------------------------
WHAT IS EQUI-VEST(R)?
EQUI-VEST(R) is a deferred annuity contract issued by THE EQUITABLE LIFE
ASSURANCE SOCIETY OF THE UNITED STATES. It provides for the accumulation of
retirement savings and for income. The contract also offers death benefit
protection and a number of payout options. You invest to accumulate value on a
tax-deferred basis in one or more of our variable investment options, our
guaranteed interest option or in our fixed maturity options ("investment
options"). This contract may not currently be available in all states.
- --------------------------------------------------------------------------------
VARIABLE INVESTMENT OPTIONS
- --------------------------------------------------------------------------------
FIXED INCOME:
- --------------------------------------------------------------------------------
o AXA Premier VIP Core Bond* o EQ/Alliance Quality Bond
o EQ/Alliance Intermediate Government o EQ/High Yield(1)
Securities o EQ/J.P. Morgan Core Bond
o EQ/Alliance Money Market
- --------------------------------------------------------------------------------
DOMESTIC STOCKS
- --------------------------------------------------------------------------------
o AXA Premier VIP Health Care* o EQ/Calvert Socially Responsible
o AXA Premier VIP Large Cap Core o EQ/Capital Guardian Research
Equity* o EQ/Capital Guardian U.S. Equity
o AXA Premier VIP Large Cap Growth* o EQ/Equity 500 Index
o AXA Premier VIP Large Cap Value* o EQ/Evergreen Omega
o AXA Premier VIP Small/Mid Cap o EQ/FI Mid Cap
Growth* o EQ/FI Small/Mid Cap Value
o AXA Premier VIP Small/Mid Cap Value* o EQ/Janus Large Cap Growth
o AXA Premier VIP Technology* o EQ/Lazard Small Cap Value
o EQ/Aggressive Stock o EQ/Marsico Focus*
o EQ/Alliance Common Stock o EQ/Mercury Basic Value Equity
o EQ/Alliance Growth and Income o EQ/MFS Emerging Growth Companies
o EQ/Alliance Premier Growth o EQ/MFS Investors Trust
o EQ/Alliance Small Cap Growth o EQ/MFS Research
o EQ/Alliance Technology o EQ/Putnam Growth & Income Value
o EQ/AXP New Dimensions** o EQ/Putnam Voyager(2)
o EQ/AXP Strategy Aggressive** o EQ/Small Company Index
o EQ/Bernstein Diversified Value
- --------------------------------------------------------------------------------
INTERNATIONAL STOCKS
- --------------------------------------------------------------------------------
o AXA Premier VIP International Equity* o EQ/Emerging Markets Equity
o EQ/Alliance Global o EQ/International Equity Index
o EQ/Alliance International o EQ/Putnam International Equity
o EQ/Capital Guardian International
- --------------------------------------------------------------------------------
BALANCED/HYBRID
- --------------------------------------------------------------------------------
o EQ/Alliance Growth Investors o EQ/Balanced
- --------------------------------------------------------------------------------
(1) Formerly named, "EQ/Alliance High Yield"
(2) Formerly named, "EQ/Putnam Investors Growth."
* Subject to state availability.
**Subject to shareholder approval, we anticipate that the EQ/AXP New Dimensions
and the EQ/AXP Strategy Aggressive investment options (the "replaced
options") will be merged into the EQ/Capital Guardian U.S. Equity and the
EQ/Alliance Small Cap Growth investment options (the "surviving options"),
respectively, on or about July 12, 2002. After the merger, the replaced
options will no longer be available and any allocation elections to either
of them will be considered as allocation elections to the applicable
surviving option. We will notify you if the replacements do not take place.
You may allocate amounts to the variable investment options under your choice
of investment method subject to any restrictions. Each variable investment
option is a subaccount of Separate Account A. Each variable investment option,
in turn, invests in a corresponding securities portfolio of either Class IA/A
or IB/B of EQ Advisors Trust or AXA Premier VIP Trust (the "Trusts"). Your
investment results in a variable investment option will depend on the
investment performance of the related portfolio.
GUARANTEED INTEREST OPTION. You may allocate amounts to the guaranteed interest
option. This option is part of our general account and pays interest at
guaranteed rates.
FIXED MATURITY OPTIONS. You may allocate amounts to one or more fixed maturity
options. These amounts will receive a fixed rate of interest for a specified
period. Interest is earned at a guaranteed rate set by us. We make a market
value adjustment (up or down) if you make transfers or withdrawals from a fixed
maturity option before its maturity date.
TYPES OF CONTRACTS. We offer the contracts for use as:
o A nonqualified annuity ("NQ") for after-tax contributions only.
o An individual retirement annuity ("IRA"), either traditional IRA or Roth IRA.
A contribution ranging from $50 to $2,500 is required to purchase a contract.
The minimum amount required depends on the type of contract, NQ or IRA,
purchased.
Registration statements relating to this offering have been filed with the
Securities and Exchange Commission ("SEC"). The statement of additional
information ("SAI") dated May 1, 2002, is a part of one of the registration
statements. The SAI is available free of charge. You may request one by writing
to our processing office or calling 1(800) 628-6673. The SAI has been
incorporated by reference into this prospectus. This prospectus and the SAI can
also be obtained from the SEC's Web site at http://www.sec.gov. The table of
contents for the SAI appears at the back of this prospectus.
THE SEC HAS NOT APPROVED OR DISAPPROVED THESE SECURITIES OR DETERMINED IF THIS
PROSPECTUS IS ACCURATE OR COMPLETE. ANY REPRESENTATION TO THE CONTRARY IS A
CRIMINAL OFFENSE. THE CONTRACTS ARE NOT INSURED BY THE FDIC OR ANY OTHER
AGENCY. THEY ARE NOT DEPOSITS OR OTHER OBLIGATIONS OF ANY BANK AND ARE NOT BANK
GUARANTEED. THEY ARE SUBJECT TO INVESTMENT RISKS AND POSSIBLE LOSS OF
PRINCIPAL.
X00299
Series 800
Contents of this prospectus
- --------------------------------------------------------------------------------
EQUI-VEST(R)
- --------------------------------------------------------------------------------
Index of key words and phrases 4
Who is Equitable Life? 5
How to reach us 6
EQUI-VEST(R) at a glance -- key features 8
- --------------------------------------------------------------------------------
FEE TABLE 11
- --------------------------------------------------------------------------------
Examples 14
Condensed financial information 15
- --------------------------------------------------------------------------------
1. CONTRACT FEATURES AND BENEFITS 16
- --------------------------------------------------------------------------------
How you can purchase and contribute to your contract 16
Owner and annuitant requirements 19
How you can make your contributions 19
What are your investment options under the contract? 19
Selecting your investment method 24
Allocating your contributions 25
Your right to cancel within a certain number of days 25
- --------------------------------------------------------------------------------
2. DETERMINING YOUR CONTRACT'S VALUE 27
- --------------------------------------------------------------------------------
Your account value and cash value 27
Your contract's value in the variable investment options 27
Your contract's value in the guaranteed interest option 27
Your contract's value in the fixed maturity options 27
- ----------------------
"We," "our" and "us" refer to Equitable Life.
When we address the reader of this prospectus with words such as "you" and
"your," we mean the person who has the right or responsi bility that the
prospectus is discussing at that point. This is usually the contract owner.
When we use the word "contract" it also includes certificates that are issued
under group contracts in some states.
2 Contents of this prospectus
- --------------------------------------------------------------------------------
3. TRANSFERRING YOUR MONEY AMONG INVESTMENT
OPTIONS 28
- --------------------------------------------------------------------------------
Transferring your account value 28
Disruptive transfer activity 28
Automatic transfer options 28
Investment simplifier 28
Rebalancing your account value 29
- --------------------------------------------------------------------------------
4. ACCESSING YOUR MONEY 30
- --------------------------------------------------------------------------------
Withdrawing your account value 30
How withdrawals are taken from your account value 30
Surrender of your contract to receive its cash value 31
Termination 31
When to expect payments 31
Your annuity payout options 31
- --------------------------------------------------------------------------------
5. CHARGES AND EXPENSES 33
- --------------------------------------------------------------------------------
Charges that Equitable Life deducts 33
Charges under the contracts 33
Charges that the Trusts deduct 36
Group or sponsored arrangements 36
Other distribution arrangements 36
- --------------------------------------------------------------------------------
6. PAYMENT OF DEATH BENEFIT 37
- --------------------------------------------------------------------------------
Your beneficiary and payment of benefit 37
How death benefit payment is made 37
Beneficiary continuation option 38
- --------------------------------------------------------------------------------
7. TAX INFORMATION 39
- --------------------------------------------------------------------------------
Overview 39
Buying a contract to fund a retirement arrangement 39
Transfers among investment options 39
Taxation of nonqualified annuities 39
Individual retirement arrangements ("IRAs") 40
Roth individual retirement annuities ("Roth IRAs") 46
Federal and state income tax withholding and
information reporting 52
Impact of taxes to Equitable Life 52
- --------------------------------------------------------------------------------
8. MORE INFORMATION 53
- --------------------------------------------------------------------------------
About Separate Account A 53
About the Trusts 53
About our fixed maturity options 53
About the general account 54
About other methods of payment 55
Dates and prices at which contract events occur 55
About your voting rights 55
About legal proceedings 56
About our independent accountants 56
Financial statements 56
Transfers of ownership, collateral assignments, loans, and
borrowing 56
Distribution of the contracts 56
- --------------------------------------------------------------------------------
9. INVESTMENT PERFORMANCE 57
- --------------------------------------------------------------------------------
Communicating performance data 60
- --------------------------------------------------------------------------------
10. INCORPORATION OF CERTAIN DOCUMENTS
BY REFERENCE 61
- --------------------------------------------------------------------------------
APPENDICES
- --------------------------------------------------------------------------------
I -- Condensed financial information A-1
II -- Market value adjustment example B-1
III -- Death benefit example C-1
- --------------------------------------------------------------------------------
STATEMENT OF ADDITIONAL INFORMATION
TABLE OF CONTENTS
- --------------------------------------------------------------------------------
Contents of this prospectus 3
Index of key words and phrases
- --------------------------------------------------------------------------------
This index should help you locate more information on the terms used in this
prospectus.
PAGE
account value 27
annuitant 16
annuity payout options 31
beneficiary 37
business day 55
cash value 27
conduit IRA 44
contract date 9
contract date anniversary 9
contract year 9
contributions 19
Contributions to Roth IRAs 46
regular contribution 46
rollovers and direct transfers 47
conversion contributions 47
direct transfers 47
Contributions to traditional IRAs 41
regular contribution 41
rollovers and transfers 42
Disruptive transfer activity 28
EQAccess 6
fixed maturity amount 23
fixed maturity options 23
guaranteed interest option 23
PAGE
IRA cover
IRS 39
investment options 19
market adjusted amount 23
market timing 28
market value adjustment 23
maturity value 23
NQ cover
portfolio cover
processing office cover
ratcheted death benefit 25
rate to maturity 23
Required Beginning Date 44
Roth IRA cover
SAI cover
SEC cover
TOPS 6
traditional IRA cover
Trusts cover
TSA cover
unit 27
unit investment trust 53
variable investment options 19
To make this prospectus easier to read, we sometimes use different words than
in the contract or supplemental materials. This is illustrated below. Although
we do use different words, they have the same meaning in this prospectus as in
the contract or supplemental materials. Your financial professional can provide
further explanation about your contract.
- -------------------------------------------------------------------------------
PROSPECTUS CONTRACT OR SUPPLEMENTAL MATERIALS
- -------------------------------------------------------------------------------
fixed maturity options Guarantee Periods or Fixed Maturity Accounts
variable investment options Investment Funds or Investment Divisions
account value Annuity Account Value
rate to maturity Guaranteed Rates
guaranteed interest option Guaranteed Interest Account
unit Accumulation unit
unit value Accumulation unit value
4 Index of key words and phrases
Who is Equitable Life?
- --------------------------------------------------------------------------------
We are The Equitable Life Assurance Society of the United States ("Equitable
Life"), a New York stock life insurance corporation. We have been doing
business since 1859. Equitable Life is a wholly owned subsidiary of AXA
Financial, Inc. (previously, The Equitable Companies). AXA, a French holding
company for an international group of insurance and related financial services
companies, is the sole shareholder of AXA Financial, Inc. As the sole
shareholder, and under its other arrangements with Equitable Life and Equitable
Life's parent, AXA exercises significant influence over the operations and
capital structure of Equitable Life and its parent. No company other than
Equitable Life, however, has any legal responsibility to pay amounts that
Equitable Life owes under the contracts.
AXA Financial, Inc. and its consolidated subsidiaries managed approximately
$481.0 billion in assets as of December 31, 2001. For over 100 years Equitable
Life has been among the largest insurance companies in the United States. We
are licensed to sell life insurance and annuities in all fifty states, the
District of Columbia, Puerto Rico, and the U.S. Virgin Islands. Our home office
is located at 1290 Avenue of the Americas, New York, N.Y. 10104.
Who is Equitable Life? 5
HOW TO REACH US
You may communicate with our processing office as listed below for the purposes
described. Certain methods of contacting us, such as by telephone or
electronically may be unavailable or delayed (for example our facsimile service
may not be available at all times and/or we may be unavailable due to emergency
closing). In addition, the level and type of service available may be
restricted based on criteria established by us.
- --------------------------------------------------------------------------------
FOR NQ AND IRA OWNERS WHO SEND CONTRIBUTIONS
INDIVIDUALLY BY REGULAR MAIL:
- --------------------------------------------------------------------------------
Equitable Life
EQUI-VEST(R)
Individual Collections
P.O. Box 13459
Newark, NJ 07188-0459
- --------------------------------------------------------------------------------
FOR NQ AND IRA OWNERS WHO SEND CONTRIBUTIONS
INDIVIDUALLY BY EXPRESS DELIVERY:
- --------------------------------------------------------------------------------
Equitable Life
c/o Bank One, N.A.
300 Harmon Meadow Boulevard, 3rd Floor
Secaucus, NJ 07094
Attn: Box 13459
- --------------------------------------------------------------------------------
FOR ALL OTHER COMMUNICATIONS (E.G., REQUESTS FOR
TRANSFERS, WITHDRAWALS, OR REQUIRED NOTICES) SENT
BY REGULAR MAIL:
- --------------------------------------------------------------------------------
Equitable Life
EQUI-VEST(R)
P.O. Box 2996
New York, NY 10116-2996
- --------------------------------------------------------------------------------
FOR ALL OTHER COMMUNICATIONS (E.G., REQUESTS FOR
TRANSFERS, WITHDRAWALS, OR REQUIRED NOTICES) SENT
BY EXPRESS DELIVERY:
- --------------------------------------------------------------------------------
Equitable Life
EQUI-VEST(R)
200 Plaza Drive, 2nd Floor
Secaucus, NJ 07094
- --------------------------------------------------------------------------------
FOR NQ AND IRA CONTRIBUTIONS REMITTED BY EMPLOYERS
AND SENT BY REGULAR MAIL:
- --------------------------------------------------------------------------------
Equitable Life
EQUI-VEST(R)
Unit Collections
P.O. Box 13463
Newark, New Jersey 07188-0463
- --------------------------------------------------------------------------------
FOR NQ AND IRA CONTRIBUTIONS REMITTED BY EMPLOYERS
AND SENT BY EXPRESS DELIVERY:
- --------------------------------------------------------------------------------
Equitable Life
c/o Bank One, N.A.
300 Harmon Meadow Boulevard, 3rd Floor
Secaucus, NJ 07094
Attn: Box 13463
- --------------------------------------------------------------------------------
REPORTS WE PROVIDE:
- --------------------------------------------------------------------------------
o written confirmation of financial transactions;
o quarterly statements of your contract values as of the close of each calendar
quarter; and
o annual statement of your contract values as of the contract date anniversary.
- --------------------------------------------------------------------------------
TELEPHONE OPERATED PROGRAM SUPPORT ("TOPS") AND
EQACCESS SYSTEMS:
- --------------------------------------------------------------------------------
TOPS is designed to provide you with up-to-date information via touch-tone
telephone. EQAccess is designed to provide this information through the
Internet. You can obtain information on:
o your current account value;
o your current allocation percentages;
o the number of units you have in the variable investment options;
o rates to maturity for the fixed maturity options;
o the daily unit values for the variable investment options; and
o performance information regarding the variable investment options (not
available through TOPS).
You can also:
o change your allocation percentages and/or transfer among the variable
investment options and the guaranteed interest option;
o elect the investment simplifier; (not available through EQAccess);
o change your TOPS personal identification number ("PIN"); (not available
through EQAccess); and
o change your EQAccess password (not available through TOPS).
TOPS and EQAccess are normally available seven days a week, 24 hours a day. You
may use TOPS by calling toll-free 1 (800) 755-7777. You may use EQAccess by
visiting our Web site at http://www.equitable.com and clicking on EQAccess.
Of course, for reasons beyond our control, these services may sometimes be
unavailable.
We have established procedures to reasonably confirm that the instructions
communicated by telephone or the Internet are genuine. For example, we will
require certain personal identification information before we will act on
telephone or Internet instructions and we will provide written confirmation of
your transfers. If we do not employ
6 Who is Equitable Life?
reasonable procedures to confirm the genuineness of telephone or Internet
instructions, we may be liable for any losses arising out of any act or
omission that constitutes negligence, lack of good faith, or willful
misconduct. In light of our procedures, we will not be liable for following
telephone or Internet instructions we reasonably believe to be genuine.
We reserve the right to limit access to these services if we determine that you
engaged in a disruptive transfer activity such as "market timing." (See
"Disruptive transfer activity" in "Transferring your money among investment
options" later in this Prospectus.)
- --------------------------------------------------------------------------------
CUSTOMER SERVICE REPRESENTATIVE:
- --------------------------------------------------------------------------------
You may also use our toll-free number (1-800-628-6673) to speak with one of our
customer service representatives. Our customer service representatives are
available on each business day Monday through Thursday from 8:00 a.m. to 7:00
p.m., and on Fridays until 5:00 p.m., Eastern Time.
Hearing or speech-impaired clients may call the AT&T National Relay Number at
(800) 855-2880 for information about your account. If you have a
Telecommunications Device for the Deaf (TDD), you may relay messages or
questions to our Customer Service Department at (800) 628-6673, Monday through
Thursday from 8:00 a.m. to 7:00 p.m., and on Friday until 5:00 p.m. Eastern
Time. AT&T personnel will communicate our reply back to you, via the TDD.
- --------------------------------------------------------------------------------
TOLL FREE TELEPHONE SERVICE:
- --------------------------------------------------------------------------------
You may reach us toll-free by calling 1(800) 841-0801 for a recording of daily
unit values for the variable investment options.
WE REQUIRE THAT THE FOLLOWING TYPES OF COMMUNICATIONS BE ON SPECIFIC FORMS WE
PROVIDE FOR THAT PURPOSE:
(1) conversion of your traditional IRA to a Roth IRA contract;
(2) cancellation of your Roth IRA contract and return to a
traditional IRA contract;
(3) election of the automatic investment program;
(4) election of the investment simplifier;
(5) election of the automatic NQ deposit service;
(6) election of the rebalancing program;
(7) election of required minimum distribution option;
(8) election of beneficiary continuation option;
(9) election of the principal assurance allocation; and
(10) request for a transfer/rollover of assets or 1035 exchange to another
carrier.
WE ALSO HAVE SPECIFIC FORMS THAT WE RECOMMEND YOU USE FOR THE FOLLOWING TYPES
OF REQUESTS:
(1) address changes;
(2) beneficiary changes;
(3) transfers among investment options;
(4) change of ownership; and
(5) contract surrender and withdrawal requests.
TO CHANGE OR CANCEL ANY OF THE FOLLOWING WE REQUIRE WRITTEN NOTIFICATION
GENERALLY AT LEAST SEVEN CALENDAR DAYS BEFORE THE NEXT SCHEDULED TRANSACTION:
(1) automatic investment program;
(2) investment simplifier;
(3) rebalancing program;
(4) systematic withdrawals; and
(5) the date annuity payments are to begin.
You must sign and date all these requests. Any written request that is not on
one of our forms must include your name and your contract number along with
adequate details about the notice you wish to give or the action you wish us to
take.
SIGNATURES:
The proper person to sign forms, notices and requests would normally be the
owner. If there are joint owners, all must sign.
Who is Equitable Life? 7
EQUI-VEST(R) at a glance -- key features
- ------------------------------------------------------------------------------------------------------------------------------------
PROFESSIONAL INVESTMENT EQUI-VEST(R) variable investment options invest in different portfolios managed by professional
MANAGEMENT investment advisers.
- ------------------------------------------------------------------------------------------------------------------------------------
GUARANTEED INTEREST o Principal and interest guarantees
OPTION
o Interest rates set periodically
- ------------------------------------------------------------------------------------------------------------------------------------
FIXED MATURITY OPTIONS o 10 fixed maturity options with maturities ranging from approximately 1 to 10 years.
o Each fixed maturity option offers a guarantee of principal and interest rate if you hold it to
maturity.
---------------------------------------------------------------------------------------------------------
If you make withdrawals or transfers from a fixed maturity option before maturity, there will be a
market value adjustment due to differences in interest rates. This may increase or decrease any value
that you have left in that fixed maturity option. If you surrender your contract, a market value
adjustment may also apply.
- ------------------------------------------------------------------------------------------------------------------------------------
TAX ADVANTAGES o On earnings inside the No tax until you make withdrawals from your contract or receive annuity
contract payments.
o On transfers inside the No tax on transfers among investment options.
contract
----------------------------------------------------------------------------------------------------------
If you are purchasing an annuity contract as an Individual Retirement Annuity (IRA), you should be
aware that such annuities do not provide tax deferral benefits beyond those already provided by the
Internal Revenue Code. Before purchasing one of these annuities, you should consider whether its features
and benefits beyond tax deferral meet your needs and goals. You may also want to consider the relative
features, benefits and costs of these annuities with any other investment that you may use in connection
with your retirement plan or arrangement. (For more information, see "Tax information" later in the
Prospectus.)
- ------------------------------------------------------------------------------------------------------------------------------------
CONTRIBUTION AMOUNTS o NQ:
-- $1,000 (initial) or $50 (initial for payroll deduction); $50 (additional).
o Traditional IRA and Roth IRA:
-- $50 (initial and additional).
Maximum contribution limitations may apply.
- ------------------------------------------------------------------------------------------------------------------------------------
DEATH BENEFIT PROTECTION The contract provides a death benefit for the beneficiary should the annuitant die. The death benefit is
equal to the account value or the minimum death benefit, whichever is higher. However, if you elect the
optional ratcheted death benefit, the death benefit is equal to the account value or the ratcheted death
benefit, whichever is higher.
- ------------------------------------------------------------------------------------------------------------------------------------
ACCESS TO YOUR MONEY o Lump sum withdrawals
o Several withdrawal options on a periodic basis
o Contract surrender
You may incur a withdrawal charge for certain withdrawals or if you surrender your contract. You may
also incur income tax and a penalty tax.
- ------------------------------------------------------------------------------------------------------------------------------------
PAYOUT OPTIONS o Fixed annuity payout options
o Variable annuity payout options
- ------------------------------------------------------------------------------------------------------------------------------------
8 EQUI-VEST(R) at a glance -- key features
- ------------------------------------------------------------------------------------------------------------------------------------
ADDITIONAL FEATURES o Dollar-cost averaging by automatic transfers
-- Interest sweep option
-- Fixed-dollar option
o Automatic investment program
o Account value rebalancing (quarterly, semiannually, and annually)
o Principal assurance allocation
o No charge on transfers among investment options
o Waiver of withdrawal charge for disability, confinement to a nursing home, and terminal illness
- ------------------------------------------------------------------------------------------------------------------------------------
FEES AND CHARGES o Daily charges on amounts invested in the variable investment options for mortality and expense risks and
other expenses at an annual rate of 1.20% (2.00% maximum).
o If your account value at the end of the contract year is less than $25,000 for NQ contracts (or less than
$20,000 for IRA contracts), we deduct an annual administrative charge equal to $30 or during the first two
contract years 2% of your account value, if less; thereafter, $30 per year ($65 maximum). If your account
value is $25,000 or more for NQ contracts (or $20,000 or more for IRA contracts), we will not deduct the
charge. For individuals who own multiple contracts with combined account values of over $100,000, this
charge may be waived. See "Annual administrative charge" in "Charges and expenses," later in this
Prospectus.
o Charge for third-party transfer (such as in the case of a trustee-to-trustee transfer for an IRA contract)
or exchange (if your contract is exchanged for a contract issued by another insurance company) -- $25
current ($65 maximum) per occurrence.
o No sales charge deducted at the time you make contributions.
o We deduct a charge equal to 6% of contributions that have been withdrawn if such contributions were made
in the current and five prior contract years. There is no charge in any contract year in which the amount
withdrawn does not exceed 15% of your account value at the time of your withdrawal request minus prior
withdrawals in that contract year. Under certain circumstances the withdrawal charge will not apply.
They are discussed in "Charges and expenses" later in this Prospectus. In addition there is no withdrawal
charge if the annuitant is age 86 or older when the contract is issued. Certain other exemptions apply.
-------------------------------------------------------------------------------------------------------------
The "contract date" is the effective date of a contract. This usually is the business day we receive the
properly completed and signed application, along with other required documents and, your initial
contribution. Your contract date will be shown in your contract. The 12-month period beginning on your
contract date and each 12-month period after that date is a "contract year." The end of each 12-month period
is your "contract date anniversary."
-------------------------------------------------------------------------------------------------------------
o We deduct an annual charge equal to 0.15% of the account value on each contract date anniversary if you
elect the optional ratcheted death benefit.
o We deduct a charge designed to approximate certain taxes that may be imposed on us, such as premium
taxes in your state. The charge is generally deducted from the amount applied to an annuity payout
option.
o We deduct a $350 annuity administrative fee from amounts applied to a Variable Immediate Annuity payout
option.
o Annual expenses of the Trusts portfolios are calculated as a percentage of the average daily net assets
invested in each portfolio. These expenses include management fees ranging from 0.25% to 1.20% annually,
12b-1 fees of 0.25% annually, and other expenses.
- ------------------------------------------------------------------------------------------------------------------------------------
ANNUITANT ISSUE AGES NQ 0-90
Traditional 0-90
Roth IRA 0-90
- ------------------------------------------------------------------------------------------------------------------------------------
THE ABOVE IS NOT A COMPLETE DESCRIPTION OF ALL MATERIAL PROVISIONS OF THE
CONTRACT. IN SOME CASES RESTRICTIONS OR EXCEPTIONS APPLY. MAXIMUM EXPENSE
LIMITATIONS APPLY TO CERTAIN VARIABLE INVESTMENT OPTIONS, AND RIGHTS ARE
RESERVED TO CHANGE OR WAIVE CERTAIN CHARGES WITHIN SPECIFIED LIMITS. ALSO, ALL
FEATURES OF THE CONTRACT, INCLUDING ALL VARIABLE INVESTMENT OPTIONS, ARE NOT
NECESSARILY AVAILABLE IN YOUR STATE OR AT CERTAIN AGES OR UNDER YOUR INVESTMENT
METHOD.
For more detailed information we urge you to read the contents of this
prospectus, as well as your contract. Please feel free to speak with your
financial professional, or call us, if you have any questions.
EQUI-VEST(R) at a glance -- key features 9
OTHER CONTRACTS
We offer a variety of fixed and variable annuity contracts. They may offer
features, including investment options, fees and/or charges that are different
from those offered by this prospectus. Not every contract is offered through
the same distributor. Upon request, your financial professional can show you
information regarding other Equitable Life annuity contracts that he or she
distributes. You can also contact us to find out more about any of the
Equitable Life annuity contracts.
10 EQUI-VEST(R) at a glance -- key features
Fee table
- --------------------------------------------------------------------------------
The fee table below will help you understand the various charges and expenses
that apply to your contract. The table reflects charges you will directly incur
under the contract, as well as charges and expenses of the Trusts and their
Portfolios that you will bear indirectly. Charges designed to approximate
certain taxes that may be imposed on us, such as premium taxes in your state,
may also apply. Also, an annuity administrative fee may apply when your annuity
payments are to begin. Each of the charges and expenses is more fully described
in "Charges and expenses" later in this Prospectus. For a complete description
of portfolio charges and expenses, please see the attached prospectuses for
each Trust.
The guaranteed interest option and fixed maturity options are not covered by
the fee table and examples. However, the annual administrative charge, the
withdrawal charge, the optional ratcheted death benefit charge, and the
third-party transfer or exchange charge do apply to the guaranteed interest
option and fixed maturity options. Also, an annuity administrative fee may
apply when your annuity payments are to begin. A market value adjustment (up or
down) may apply as a result of a withdrawal, transfer or surrender of amounts
from a fixed maturity option.
- ------------------------------------------------------------------------------------------------------------------------------------
CHARGES WE DEDUCT FROM YOUR VARIABLE INVESTMENT OPTIONS EXPRESSED AS AN ANNUAL PERCENTAGE OF DAILY NET ASSETS
- ------------------------------------------------------------------------------------------------------------------------------------
Mortality and expense risk(1) 0.95%
Other expenses 0.25%
----
Total Separate Account A annual expenses 1.20% current (2.00% maximum)
- ------------------------------------------------------------------------------------------------------------------------------------
CHARGES WE DEDUCT FROM YOUR ACCOUNT VALUE ON EACH CONTRACT DATE ANNIVERSARY
- ------------------------------------------------------------------------------------------------------------------------------------
Annual administrative charge(2)
If your account value is less than $25,000 for NQ contracts (or less
than $20,000 for IRA contracts) on the last day of your contract
year $30 current ($65 maximum)
- -----------------------------------------------------------------------
If your account value is $25,000 or more for NQ contracts (or
$20,000 or more for IRA contracts) on the last day of your con-
tract year $ 0
- ------------------------------------------------------------------------------------------------------------------------------------
CHARGES WE DEDUCT FROM YOUR ACCOUNT VALUE AT THE TIME YOU REQUEST CERTAIN TRANSACTIONS
- ------------------------------------------------------------------------------------------------------------------------------------
Withdrawal charge(3) 6%
Charge for third-party transfer or exchange(4) $25 current ($65 maximum) for each occurrence
Charge if you elect a Variable Immediate Annuity payout option $350
- ------------------------------------------------------------------------------------------------------------------------------------
CHARGES WE DEDUCT FROM YOUR ACCOUNT VALUE EACH YEAR IF YOU ELECT THE OPTIONAL BENEFIT
- ------------------------------------------------------------------------------------------------------------------------------------
Optional ratcheted death benefit charge (as a percentage of your
account value this charge is deducted annually on each contract date
anniversary until age 90) 0.15%
- ------------------------------------------------------------------------------------------------------------------------------------
Fee table 11
ANNUAL EXPENSES OF THE TRUSTS
(AS A PERCENTAGE OF AVERAGE DAILY NET ASSETS IN EACH PORTFOLIO)
- ------------------------------------------------------------------------------------------------------------------------------------
NET
TOTAL
OTHER ANNUAL
MANAGEMENT EXPENSES EXPENSES
FEES (AFTER EXPENSE (AFTER EXPENSE (AFTER EXPENSE
LIMITATION)(5) 12B-1 FEES(6) LIMITATION)(7) LIMITATION)(8)
- ------------------------------------------------------------------------------------------------------------------------------------
AXA PREMIER VIP TRUST:
- ------------------------------------------------------------------------------------------------------------------------------------
AXA Premier VIP Core Bond 0.00% 0.25% 0.70% 0.95%
AXA Premier VIP Health Care 0.44% 0.25% 1.16% 1.85%
AXA Premier VIP International Equity 0.62% 0.25% 0.93% 1.80%
AXA Premier VIP Large Cap Growth 0.31% 0.25% 0.79% 1.35%
AXA Premier VIP Large Cap Core Equity 0.17% 0.25% 0.93% 1.35%
AXA Premier VIP Large Cap Value 0.08% 0.25% 1.02% 1.35%
AXA Premier VIP Small/Mid Cap Growth 0.42% 0.25% 0.93% 1.60%
AXA Premier VIP Small/Mid Cap Value 0.20% 0.25% 1.15% 1.60%
AXA Premier VIP Technology 0.58% 0.25% 1.02% 1.85%
- ------------------------------------------------------------------------------------------------------------------------------------
EQ ADVISORS TRUST:
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/Aggressive Stock 0.61% 0.25% 0.08% 0.94%
EQ/Alliance Common Stock 0.46% 0.25% 0.07% 0.78%
EQ/Alliance Global 0.73% 0.25% 0.12% 1.10%
EQ/Alliance Growth and Income 0.57% 0.25% 0.06% 0.88%
EQ/Alliance Growth Investors 0.57% 0.25% 0.06% 0.88%
EQ/Alliance Intermediate Government Securities 0.50% 0.25% 0.12% 0.87%
EQ/Alliance International 0.85% 0.25% 0.25% 1.35%
EQ/Alliance Money Market 0.33% 0.25% 0.07% 0.65%
EQ/Alliance Premier Growth 0.84% 0.25% 0.06% 1.15%
EQ/Alliance Quality Bond 0.53% 0.25% 0.07% 0.85%
EQ/Alliance Small Cap Growth 0.75% 0.25% 0.06% 1.06%
EQ/Alliance Technology 0.82% 0.25% 0.08% 1.15%
EQ/AXP New Dimensions 0.00% 0.25% 0.70% 0.95%
EQ/AXP Strategy Aggressive 0.00% 0.25% 0.75% 1.00%
EQ/Balanced 0.57% 0.25% 0.08% 0.90%
EQ/Bernstein Diversified Value 0.61% 0.25% 0.09% 0.95%
EQ/Calvert Socially Responsible 0.00% 0.25% 0.80% 1.05%
EQ/Capital Guardian International 0.66% 0.25% 0.29% 1.20%
EQ/Capital Guardian Research 0.55% 0.25% 0.15% 0.95%
EQ/Capital Guardian U.S. Equity 0.59% 0.25% 0.11% 0.95%
EQ/Emerging Markets Equity 0.87% 0.25% 0.68% 1.80%
EQ/Equity 500 Index 0.25% 0.25% 0.06% 0.56%
EQ/Evergreen Omega 0.00% 0.25% 0.70% 0.95%
EQ/FI Mid Cap 0.48% 0.25% 0.27% 1.00%
EQ/FI Small/Mid Cap Value 0.74% 0.25% 0.11% 1.10%
EQ/High Yield 0.60% 0.25% 0.07% 0.92%
EQ/International Equity Index 0.35% 0.25% 0.50% 1.10%
EQ/J.P. Morgan Core Bond 0.44% 0.25% 0.11% 0.80%
EQ/Janus Large Cap Growth 0.76% 0.25% 0.14% 1.15%
EQ/Lazard Small Cap Value 0.72% 0.25% 0.13% 1.10%
EQ/Marsico Focus 0.00% 0.25% 0.90% 1.15%
EQ/Mercury Basic Value Equity 0.60% 0.25% 0.10% 0.95%
EQ/MFS Emerging Growth Companies 0.63% 0.25% 0.09% 0.97%
EQ/MFS Investors Trust 0.58% 0.25% 0.12% 0.95%
EQ/MFS Research 0.63% 0.25% 0.07% 0.95%
EQ/Putnam Growth & Income Value 0.57% 0.25% 0.13% 0.95%
EQ/Putnam International Equity 0.71% 0.25% 0.29% 1.25%
EQ/Putnam Voyager 0.62% 0.25% 0.08% 0.95%
EQ/Small Company Index 0.25% 0.25% 0.35% 0.85%
- ------------------------------------------------------------------------------------------------------------------------------------
Notes:
(1) A portion of this charge is for providing the death benefit.
(2) During the first two contract years, this charge is currently equal to the
lesser of $30 or 2% of your account value if it applies. Thereafter, the
charge is $30 for each contract year. We reserve the right to increase
this charge to a maximum of $65.
12 Fee table
(3) This charge applies to any contribution withdrawn within six contract years
of the date of the contribution. This charge is deducted upon a withdrawal
of amounts in excess of the 15% free withdrawal amount. Important
exceptions and limitations may eliminate or reduce this charge.
(4) We reserve the right to increase this charge to a maximum of $65 for each
occurrence.
(5) The management fees shown for each portfolio cannot be increased without a
vote of each portfolio's shareholders. See footnote (7) for any expense
limitation agreement information.
(6) Portfolio shares are all subject to fees imposed under the distribution
plans (the "Rule 12b-1 Plan") adopted by the Trusts pursuant to Rule 12b-1
under the Investment Company Act of 1940. The 12b-1 fee will not be
increased for the life of the contracts.
(7) The amounts shown as "Other Expenses" will fluctuate from year to year
depending on actual expenses. Since initial seed capital was invested for
the EQ/Marsico Focus Portfolio on August 31, 2001, "Other Expenses" shown
have been annualized. Initial seed capital was invested for the Portfolios
of the AXA Premier VIP Trust on December 31, 2001 thus, "Other Expenses"
shown are estimated. See footnote (8) for any expense limitation agreement
information.
(8) Equitable Life, the Trusts' manager, has entered into expense limitation
agreements with respect to certain Portfolios, which are effective through
April 30, 2003. Under these agreements Equitable Life has agreed to waive
or limit its fees and assume other expenses of each of these Portfolios,
if necessary, in an amount that limits each Portfolio's Total Annual
Expenses (exclusive of interest, taxes, brokerage commissions, capitalized
expenditures, and extraordinary expenses) to not more than the amounts
specified above as "Net Total Annual Expenses." Each portfolio may at a
later date make a reimbursement to Equitable Life for any of the
management fees waived or limited and other expenses assumed and paid by
Equitable Life pursuant to the expense limitation agreement provided that
the Portfolio's current annual operating expenses do not exceed the
operating expense limit determined for such Portfolio. For more
information see the prospectuses for each Trust. The following chart
indicates management fees and other expenses before any fee waivers and/or
expense reimbursements that would have applied to each Portfolio.
Portfolios that are not listed below do not have an expense limitation
arrangement in effect or the expense limitation arrangement did not result
in a fee waiver or reimbursement.
- --------------------------------------------------------------------------------
MANAGEMENT FEES OTHER EXPENSES
(BEFORE ANY FEE (BEFORE ANY FEE
WAIVERS AND/OR WAIVERS AND/OR
EXPENSE EXPENSE
PORTFOLIO NAME REIMBURSEMENTS) REIMBURSEMENTS)
- --------------------------------------------------------------------------------
AXA PREMIER VIP TRUST:
- --------------------------------------------------------------------------------
AXA Premier VIP Core Bond 0.60% 0.84%
AXA Premier VIP Health Care 1.20% 1.16%
AXA Premier VIP International
Equity 1.05% 0.93%
AXA Premier VIP Large Cap Growth 0.90% 0.79%
AXA Premier VIP Large Cap Core
Equity 0.90% 0.93%
AXA Premier VIP Large Cap Value 0.90% 1.02%
AXA Premier VIP Small/Mid Cap
Growth 1.10% 0.93%
AXA Premier VIP Small/Mid Cap
Value 1.10% 1.15%
AXA Premier VIP Technology 1.20% 1.02%
- --------------------------------------------------------------------------------
EQ ADVISORS TRUST:
- --------------------------------------------------------------------------------
EQ/Alliance Premier Growth 0.90% 0.06%
EQ/Alliance Technology 0.90% 0.08%
EQ/AXP New Dimensions 0.65% 1.06%
EQ/AXP Strategy Aggressive 0.70% 0.77%
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
MANAGEMENT FEES OTHER EXPENSES
(BEFORE ANY FEE (BEFORE ANY FEE
WAIVERS AND/OR WAIVERS AND/OR
EXPENSE EXPENSE
PORTFOLIO NAME REIMBURSEMENTS) REIMBURSEMENTS)
- --------------------------------------------------------------------------------
EQ/Bernstein Diversified Value 0.65% 0.09%
EQ/Calvert Socially Responsible 0.65% 1.46%
EQ/Capital Guardian International 0.85% 0.29%
EQ/Capital Guardian Research 0.65% 0.15%
EQ/Capital Guardian U.S. Equity 0.65% 0.11%
EQ/Emerging Markets Equity 1.15% 0.68%
EQ/Evergreen Omega 0.65% 0.99%
EQ/FI Mid Cap 0.70% 0.27%
EQ/FI Small/Mid Cap Value 0.75% 0.11%
EQ/International Equity Index 0.35% 0.50%
EQ/J.P. Morgan Core Bond 0.45% 0.11%
EQ/Janus Large Cap Growth 0.90% 0.14%
EQ/Lazard Small Cap Value 0.75% 0.13%
EQ/Marsico Focus 0.90% 2.44%
EQ/MFS Investors Trust 0.60% 0.12%
EQ/MFS Research 0.65% 0.07%
EQ/Putnam Growth & Income Value 0.60% 0.13%
EQ/Putnam International Equity 0.85% 0.29%
EQ/Putnam Voyager 0.65% 0.08%
- --------------------------------------------------------------------------------
Fee table 13
EXAMPLES
The examples below show the expenses that a hypothetical contract owner would
pay in the situations illustrated. We assume a $1,000 contribution is invested
in one of the variable investment options listed and a 5% annual return is
earned on the assets in that option.(1) We also assume that the optional
ratcheted death benefit is not elected and there is no waiver of the withdrawal
charge. The annual administrative charge is based on the charges that apply to
a mix of estimated contract sizes, resulting in an estimated administrative
charge for the purpose of these examples of $0.714 per $1,000. Total Separate
Account A expenses used to compute the example below are the maximum expenses
rather than the lower current expenses. The examples assume the continuation of
Total Annual Expenses (after expense limitation) shown for each Portfolio of
the Trusts in the table, above, for the entire one, three, five and ten year
periods included in the examples.
These examples should not be considered a representation of past or future
expenses for each option. Actual expenses may be greater or less than those
shown. Similarly, the annual rate of return assumed in the examples is not an
estimate or guarantee of future investment performance.
- ------------------------------------------------------------------------------------------------------------
IF YOU SURRENDER YOUR CONTRACT AT
THE END OF EACH PERIOD SHOWN,
THE EXPENSES WOULD BE:
1 YEAR 3 YEARS 5 YEARS 10 YEARS
- ------------------------------------------------------------------------------------------------------------
AXA Premier VIP Core Bond $ 83.64 $ 150.71 $ 220.26 $ 344.44
AXA Premier VIP Health Care $ 92.60 $ 176.90 $ 262.70 $ 428.25
AXA Premier VIP International Equity $ 92.10 $ 175.46 $ 260.39 $ 423.79
AXA Premier VIP Large Cap Core Equity $ 87.62 $ 162.41 $ 239.33 $ 382.65
AXA Premier VIP Large Cap Growth $ 87.62 $ 162.41 $ 239.33 $ 382.65
AXA Premier VIP Large Cap Value $ 87.62 $ 162.41 $ 239.33 $ 382.65
AXA Premier VIP Small/Mid Cap Growth $ 90.11 $ 169.68 $ 251.08 $ 405.74
AXA Premier VIP Small/Mid Cap Value $ 90.11 $ 169.68 $ 251.08 $ 405.74
AXA Premier VIP Technology $ 92.60 $ 176.90 $ 262.70 $ 428.25
EQ/Aggressive Stock $ 83.54 $ 150.42 $ 219.78 $ 343.47
EQ/Alliance Common Stock $ 81.94 $ 145.71 $ 212.05 $ 327.72
EQ/Alliance Global $ 85.13 $ 155.11 $ 227.45 $ 358.96
EQ/Alliance Growth and Income $ 82.94 $ 148.65 $ 216.89 $ 337.60
EQ/Alliance Growth Investors $ 82.94 $ 148.65 $ 216.89 $ 337.60
EQ/Alliance Intermediate Government Securities $ 82.84 $ 148.36 $ 216.41 $ 336.61
EQ/Alliance International $ 87.62 $ 162.41 $ 239.33 $ 382.65
EQ/Alliance Money Market $ 80.65 $ 141.87 $ 205.74 $ 314.74
EQ/Alliance Premier Growth $ 85.63 $ 156.57 $ 229.84 $ 363.75
EQ/Alliance Quality Bond $ 82.64 $ 147.77 $ 215.44 $ 334.64
EQ/Alliance Small Cap Growth $ 84.73 $ 153.94 $ 225.54 $ 355.11
EQ/Alliance Technology $ 85.63 $ 156.57 $ 229.84 $ 363.75
EQ/AXP New Dimensions $ 83.64 $ 150.71 $ 220.26 $ 344.44
EQ/AXP Strategy Aggressive $ 84.13 $ 152.18 $ 222.66 $ 349.31
EQ/Balanced $ 83.14 $ 149.24 $ 217.85 $ 339.56
EQ/Bernstein Diversified Value $ 83.64 $ 150.71 $ 220.26 $ 344.44
EQ/Calvert Socially Responsible $ 84.63 $ 153.64 $ 225.06 $ 354.14
EQ/Capital Guardian International $ 86.13 $ 158.04 $ 232.22 $ 368.51
EQ/Capital Guardian Research $ 83.64 $ 150.71 $ 220.26 $ 344.44
EQ/Capital Guardian U.S. Equity $ 83.64 $ 150.71 $ 220.26 $ 344.44
EQ/Emerging Markets Equity $ 92.10 $ 175.46 $ 260.39 $ 423.79
EQ/Equity 500 Index $ 79.75 $ 139.20 $ 201.35 $ 305.65
EQ/Evergreen Omega $ 83.64 $ 150.71 $ 220.26 $ 344.44
EQ/FI Mid Cap $ 84.13 $ 152.18 $ 222.66 $ 349.31
EQ/FI Small/Mid Cap Value $ 85.13 $ 155.11 $ 227.45 $ 358.96
EQ/High Yield $ 83.34 $ 149.83 $ 218.82 $ 341.52
EQ/International Equity Index $ 85.13 $ 155.11 $ 227.45 $ 358.96
EQ/J.P. Morgan Core Bond $ 82.14 $ 146.30 $ 213.02 $ 329.71
EQ/Janus Large Cap Growth $ 85.63 $ 156.57 $ 229.84 $ 363.75
EQ/Lazard Small Cap Value $ 85.13 $ 155.11 $ 227.45 $ 358.96
EQ/Marsico Focus $ 85.63 $ 156.57 $ 229.84 $ 363.75
EQ/Mercury Basic Value Equity $ 83.64 $ 150.71 $ 220.26 $ 344.44
EQ/MFS Emerging Growth Companies $ 83.83 $ 151.30 $ 221.22 $ 346.39
EQ/MFS Investors Trust $ 83.64 $ 150.71 $ 220.26 $ 344.44
EQ/MFS Research $ 83.64 $ 150.71 $ 220.26 $ 344.44
EQ/Putnam Growth & Income Value $ 83.64 $ 150.71 $ 220.26 $ 344.44
EQ/Putnam International Equity $ 86.62 $ 159.50 $ 234.59 $ 373.25
- ------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------
IF YOU DO NOT SURRENDER YOUR CONTRACT AT
THE END OF EACH PERIOD SHOWN,
THE EXPENSES WOULD BE:
1 YEAR 3 YEARS 5 YEARS 10 YEARS
- ------------------------------------------------------------------------------------------------------------
AXA Premier VIP Core Bond $ 31.70 $ 96.86 $ 164.42 $ 344.44
AXA Premier VIP Health Care $ 41.15 $ 124.53 $ 209.40 $ 428.25
AXA Premier VIP International Equity $ 40.62 $ 123.01 $ 206.95 $ 423.79
AXA Premier VIP Large Cap Core Equity $ 35.90 $ 109.22 $ 184.63 $ 382.65
AXA Premier VIP Large Cap Growth $ 35.90 $ 109.22 $ 184.63 $ 382.65
AXA Premier VIP Large Cap Value $ 35.90 $ 109.22 $ 184.63 $ 382.65
AXA Premier VIP Small/Mid Cap Growth $ 38.52 $ 116.90 $ 197.09 $ 405.74
AXA Premier VIP Small/Mid Cap Value $ 38.52 $ 116.90 $ 197.09 $ 405.74
AXA Premier VIP Technology $ 41.15 $ 124.53 $ 209.40 $ 428.25
EQ/Aggressive Stock $ 31.60 $ 96.55 $ 163.91 $ 343.47
EQ/Alliance Common Stock $ 29.92 $ 91.57 $ 155.72 $ 327.72
EQ/Alliance Global $ 33.28 $ 101.51 $ 172.04 $ 358.96
EQ/Alliance Growth and Income $ 30.97 $ 94.68 $ 160.85 $ 337.60
EQ/Alliance Growth Investors $ 30.97 $ 94.68 $ 160.85 $ 337.60
EQ/Alliance Intermediate Government Securities $ 30.86 $ 94.37 $ 160.34 $ 336.61
EQ/Alliance International $ 35.90 $ 109.22 $ 184.63 $ 382.65
EQ/Alliance Money Market $ 28.55 $ 87.51 $ 149.03 $ 314.74
EQ/Alliance Premier Growth $ 33.80 $ 103.05 $ 174.57 $ 363.75
EQ/Alliance Quality Bond $ 30.65 $ 93.75 $ 159.31 $ 334.64
EQ/Alliance Small Cap Growth $ 32.86 $ 100.27 $ 170.01 $ 355.11
EQ/Alliance Technology $ 33.80 $ 103.05 $ 174.57 $ 363.75
EQ/AXP New Dimensions $ 31.70 $ 96.86 $ 164.42 $ 344.44
EQ/AXP Strategy Aggressive $ 32.23 $ 98.41 $ 166.97 $ 349.31
EQ/Balanced $ 31.18 $ 95.31 $ 161.87 $ 339.56
EQ/Bernstein Diversified Value $ 31.70 $ 96.86 $ 164.42 $ 344.44
EQ/Calvert Socially Responsible $ 32.75 $ 99.96 $ 169.51 $ 354.14
EQ/Capital Guardian International $ 34.33 $ 104.60 $ 177.09 $ 368.51
EQ/Capital Guardian Research $ 31.70 $ 96.86 $ 164.42 $ 344.44
EQ/Capital Guardian U.S. Equity $ 31.70 $ 96.86 $ 164.42 $ 344.44
EQ/Emerging Markets Equity $ 40.62 $ 123.01 $ 206.95 $ 423.79
EQ/Equity 500 Index $ 27.61 $ 84.70 $ 144.37 $ 305.65
EQ/Evergreen Omega $ 31.70 $ 96.86 $ 164.42 $ 344.44
EQ/FI Mid Cap $ 32.23 $ 98.41 $ 166.97 $ 349.31
EQ/FI Small/Mid Cap Value $ 33.28 $ 101.51 $ 172.04 $ 358.96
EQ/High Yield $ 31.39 $ 95.93 $ 162.89 $ 341.52
EQ/International Equity Index $ 33.28 $ 101.51 $ 172.04 $ 358.96
EQ/J.P. Morgan Core Bond $ 30.13 $ 92.19 $ 156.75 $ 329.71
EQ/Janus Large Cap Growth $ 33.80 $ 103.05 $ 174.57 $ 363.75
EQ/Lazard Small Cap Value $ 33.28 $ 101.51 $ 172.04 $ 358.96
EQ/Marsico Focus $ 33.80 $ 103.05 $ 174.57 $ 363.75
EQ/Mercury Basic Value Equity $ 31.70 $ 96.86 $ 164.42 $ 344.44
EQ/MFS Emerging Growth Companies $ 31.91 $ 97.48 $ 165.44 $ 346.39
EQ/MFS Investors Trust $ 31.70 $ 96.86 $ 164.42 $ 344.44
EQ/MFS Research $ 31.70 $ 96.86 $ 164.42 $ 344.44
EQ/Putnam Growth & Income Value $ 31.70 $ 96.86 $ 164.42 $ 344.44
EQ/Putnam International Equity $ 34.85 $ 106.14 $ 179.61 $ 373.25
- ------------------------------------------------------------------------------------------------------------
14 Fee table
- ------------------------------------------------------------------------------------------------------------------------------
IF YOU SURRENDER YOUR CONTRACT AT IF YOU DO NOT SURRENDER YOUR CONTRACT AT
THE END OF EACH PERIOD SHOWN, THE END OF EACH PERIOD SHOWN,
THE EXPENSES WOULD BE: THE EXPENSES WOULD BE:
1 YEAR 3 YEARS 5 YEARS 10 YEARS 1 YEAR 3 YEARS 5 YEARS 10 YEARS
- ------------------------------------------------------------------------------------------------------------------------------
EQ/Putnam Voyager $ 83.64 $ 150.71 $ 220.26 $ 344.44 $ 31.70 $ 96.86 $ 164.42 $ 344.44
EQ/Small Company Index $ 82.64 $ 147.77 $ 215.44 $ 334.64 $ 30.65 $ 93.75 $ 159.31 $ 334.64
- ------------------------------------------------------------------------------------------------------------------------------
(1) The amount accumulated from the $1,000 contribution could not be paid in
the form of an annuity payout option at the end of any of the periods
shown in the examples. This is because if the amount applied to purchase
an annuity payout option is less than $2,000, or the initial payment is
less than $20, we may pay the amount to you in a single sum instead of as
payments under an annuity payout option. See "Accessing your money" later
in this Prospectus.
IF YOU ELECT THE OPTIONAL RATCHETED DEATH BENEFIT:
The above examples do not reflect a charge for the optional ratcheted death
benefit. If you elect the optional ratcheted death benefit we will also deduct
an annual charge equal to 0.15% of your account value on each contract date
anniversary up to age 90. Therefore, the expenses shown in the above examples
would, in each case, be increased by an amount not in excess of $1.57 in the
first year, $1.74 in the third year, $1.91 in the fifth year and $2.44 in the
tenth year.
IF YOU ELECT A VARIABLE IMMEDIATE ANNUITY PAYOUT OPTION:
Assuming an annuity payout option could be issued, (see Note (1) above), and
you elect a Variable Immediate Annuity payout option, the expenses shown in the
above example for "if you do not surrender your contract" would, in each case,
be increased by $5.44 based on the average amount applied to annuity payout
options in 2001. See "Annuity administrative fee" under "Charges and expenses"
later in this Prospectus.
CONDENSED FINANCIAL INFORMATION
Please see Appendix I at the end of this Prospectus for the unit values and the
number of units outstanding as of the end of the period shown for each of the
variable investment options available as of December 31, 2001.
Fee table 15
1. Contract features and benefits
- --------------------------------------------------------------------------------
HOW YOU CAN PURCHASE AND CONTRIBUTE TO YOUR CONTRACT
You may purchase a contract by making payments to us that we call
"contributions." We require a minimum contribution amount for each type of
contract purchased. The minimum contribution amount under our automatic
investment program is $20. We discuss the automatic investment program under
"About other methods of payment" in "More information" later in this
Prospectus. The following table summarizes our rules regarding contributions to
your contract. All ages in the table refer to the age of the annuitant named in
the contract.
- --------------------------------------------------------------------------------
The "annuitant" is the person who is the measuring life for determining
contract benefits. The annuitant is not necessarily the contract owner.
- --------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
AVAILABLE FOR ANNUITANT MINIMUM SOURCE OF LIMITATIONS ON
CONTRACT TYPE ISSUE AGES CONTRIBUTIONS CONTRIBUTIONS CONTRIBUTIONS
- ------------------------------------------------------------------------------------------------------------------------------------
NQ 0 through 90 $1,000 (initial), o After-tax money. o For annuitants up to age 83
$ 50 (additional) at contract issue, additional
0 through 85 in New York o Paid to us by check or contributions may be made
transfer of contract value up to age 84.
in a tax deferred exchange
under Section 1035 of the o For annuitants age 84 up to
Internal Revenue Code. age 88 at contract issue,
additional contributions may
o Paid to us by an employer be made up to one year
who establishes a payroll beyond the annuitant's issue
deduction program. age.
o For annuitants age 89 to 90
(ages 84 and 85 in NY) at
contract issue, no additional
contribution(s) may be
made.
- ------------------------------------------------------------------------------------------------------------------------------------
16 Contract features and benefits
- ------------------------------------------------------------------------------------------------------------------------------------
AVAILABLE FOR ANNUITANT MINIMUM SOURCE OF LIMITATIONS ON
CONTRACT TYPE ISSUE AGES CONTRIBUTIONS CONTRIBUTIONS CONTRIBUTIONS
- ------------------------------------------------------------------------------------------------------------------------------------
Traditional 0 through 90 $50 (initial and o "Regular" traditional IRA o For annuitants ages 70-1/2 to
IRA* 0 through 85 in New York additional) contributions either made 83 at contract issue, addi-
by you or paid to us by an tional rollover contributions
employer who establishes a may be made up to age 84.
payroll deduction program.
o For annuitants age 84 up to
o For the calendar year 2002, age 88 at contract issue,
additional catch-up additional rollover contribu-
contributions. tions may be made up to
one year beyond the annu-
o Eligible rollover distribu- itant's issue age.
tions from TSA contracts or
other 403(b) arrangements, o For annuitants age 89 to 90
qualified plans and govern- (age 84 and 85 in NY) at
mental EDC plans. contract issue, no additional
rollover contributions may
o Rollovers from another be made.
traditional individual retire-
ment arrangement. o Regular IRA contributions
may not exceed $3,000 for
o Direct custodian-to- 2002.
custodian transfers from
other traditional individual o No regular IRA contributions
retirement arrangements. in the calendar year you turn
age 70-1/2 and thereafter.
o Rollover and direct transfer
contributions after age 70-1/2
must be net of required
minimum distributions.
o Additional catch-up contri-
butions totalling up to $500
can be made for the calen-
dar year 2002 where the
owner is at least age 50 but
under age 70-1/2 at any time
during 2002.
- ------------------------------------------------------------------------------------------------------------------------------------
Contract features and benefits 17
- ------------------------------------------------------------------------------------------------------------------------------------
AVAILABLE FOR ANNUITANT MINIMUM SOURCE OF LIMITATIONS ON
CONTRACT TYPE ISSUE AGES CONTRIBUTIONS CONTRIBUTIONS CONTRIBUTIONS
- ------------------------------------------------------------------------------------------------------------------------------------
Roth IRA 0 through 90 $50 (initial and o Regular after-tax o For annuitants up to age 83
0 through 85 in New York additional) contributions either made at contract issue, additional
by you or paid to us by an contributions may be made
employer who establishes a up to age 84.
payroll deduction program.
o For annuitants age 84 up to
o Rollovers from another age 88 at contract issue,
Roth IRA. additional contributions may
be made up to one year
o Conversion rollovers from a beyond the annuitant's issue
traditional IRA. age.
o Direct transfers from o For annuitants age 89 to 90
another Roth IRA. (age 84 and 85 in NY) at
contract issue, no additional
o For the calendar year 2002, contributions may be made.
additional catch-up
contributions. o Regular Roth IRA contributions
may not exceed $3,000 for 2002.
o Contributions are subject to
income limits and other tax
rules. See "Contributions to
Roth IRAs -- Tax information"
later in this Prospectus.
o Additional catch-up contri-
butions totalling up to $500
can be made for the calen-
dar year 2002 where the
owner is at least age 50 at
any time during 2002.
* For traditional IRA contracts, the maximum issue age is 70, but we will issue
up to age 90 if the contribution is a rollover contribution.
See "Tax information" later in this Prospectus for a more detailed discussion
of sources of contributions and certain contribution limitations. We may refuse
to accept any contribution if the sum of all contributions under all
EQUI-VEST(R) contracts with the same annuitant would then total more than
$1,500,000. We may also refuse to accept any contribution if the sum of all
contributions under all Equitable Life annuity accumulation contracts that you
own would then total more than $2,500,000.
For information on when contributions are credited, see "Dates and prices at
which contract events occur" under "More information" later in this Prospectus.
18 Contract features and benefits
OWNER AND ANNUITANT REQUIREMENTS
Under NQ contracts, the annuitant can be different than the owner. A joint
owner may also be named. Only natural persons can be joint owners. This means
that an entity such as a corporation cannot be a joint owner.
Under any type of the IRA contract, the owner and annuitant must be the same
person.
HOW YOU CAN MAKE YOUR CONTRIBUTIONS
Except as noted below, contributions must be made by check drawn on a U.S.
bank, in U.S. dollars, and made payable to Equitable Life. We may also apply
contributions made pursuant a 1035 tax-free exchange or a direct transfer. We
do not accept third-party checks endorsed to us except for rollover
contributions, tax-free exchanges or trustee checks that involve no refund. All
checks are subject to our ability to collect the funds. We reserve the right to
reject a payment if it is received in an unacceptable form.
Additional contributions may also be made by wire transfer or our automatic
investment program. The method of payment is discussed in detail under "About
our methods of payment" in "More information" later in this Prospectus.
Your initial contribution must generally be accompanied by an application and
any other form we need to process the contribution. If any information is
missing or unclear, we will try to obtain that information. If we are unable to
obtain all of the information we require within five business days after we
receive an incomplete application or form, we will inform the financial
professional submitting the application on your behalf. We will then return the
contribution to you unless you specifically direct us to keep your contribution
until we receive the required information.
Generally, you may make additional contributions at any time. You may do so in
single sum amounts, on a regular basis, or as your financial situation permits.
- --------------------------------------------------------------------------------
Our "business day" generally is any day on which the New York Stock Exchange is
open for trading. A business day does not include any day we choose not to open
due to emergency conditions. We may also close early due to emergency
conditions.
- --------------------------------------------------------------------------------
WHAT ARE YOUR INVESTMENT OPTIONS UNDER THE CONTRACT?
Your investment options are the variable investment options, the guaranteed
interest option and the fixed maturity options.
VARIABLE INVESTMENT OPTIONS
Your investment results in any one of the variable investment options will
depend on the investment performance of the underlying portfolios. You can lose
your principal when investing in the variable investment options. In periods of
poor market performance, the net return, after charges and expenses, may result
in negative yields, including for the EQ/Alliance Money Market variable
investment option. Listed below are the currently available portfolios, their
investment objectives, and their advisers.
- --------------------------------------------------------------------------------
You can choose from among the variable investment options, the guaranteed
interest option and the fixed maturity options.
- --------------------------------------------------------------------------------
Contract features and benefits 19
PORTFOLIOS OF THE TRUSTS
You should note that some portfolios have objectives and strategies that are
substantially similar to those of certain funds that are purchased directly
rather than under a variable insurance product such as EQUI-VEST(R). These
portfolios may even have the same manager(s) and/or a similar name. However,
there are numerous factors that can contribute to differences in performance
between two investments, particularly over short periods of time. Such factors
include the timing of stock purchases and sales; differences in fund cash flows;
and specific strategies employed by the portfolio manager.
- ------------------------------------------------------------------------------------------------------------------------------------
AXA PREMIER VIP TRUST:
PORTFOLIO NAME OBJECTIVE ADVISER(S)
- ------------------------------------------------------------------------------------------------------------------------------------
AXA Premier VIP Core Bond* Seeks a balance of a high current BlackRock Advisors, Inc.
income and capital Pacific Investment Management Company LLC
appreciation consistent with a
prudent level of risk
- ------------------------------------------------------------------------------------------------------------------------------------
AXA Premier VIP Health Care* Long-term growth of capital AIM Capital Management, Inc.
Dresdner RCM Global Investors LLC
Wellington Management Company, LLP
- ------------------------------------------------------------------------------------------------------------------------------------
AXA Premier VIP International Long-term growth of capital Alliance Capital Management L.P., through its
Equity* Bernstein Investment Research and
Management Unit
Bank of Ireland Asset Management (U.S.)
Limited
OppenheimerFunds, Inc.
- ------------------------------------------------------------------------------------------------------------------------------------
AXA Premier VIP Large Cap Core Long-term growth of capital Alliance Capital Management L.P., through its
Equity* Bernstein Investment Research and
Management Unit
Janus Capital Management LLC
Thornburg Investment Management, Inc.
- ------------------------------------------------------------------------------------------------------------------------------------
AXA Premier VIP Large Cap Long-term growth of capital Alliance Capital Management L.P.
Growth* Dresdner RCM Global Investors LLC
TCW Investment Management Company
- ------------------------------------------------------------------------------------------------------------------------------------
AXA Premier VIP Large Cap Value* Long-term growth of capital Alliance Capital Management L.P.
Institutional Capital Corporation
MFS Investment Management
- ------------------------------------------------------------------------------------------------------------------------------------
AXA Premier VIP Small/Mid Cap Long-term growth of capital Alliance Capital Management L.P.
Growth* MFS Investment Management
RS Investment Management, L.P.
- ------------------------------------------------------------------------------------------------------------------------------------
AXA Premier VIP Small/Mid Cap Long-term growth of capital AXA Rosenberg Investment Management LLC
Value* The Boston Company Asset Management, LLC
TCW Investment Management Company
- ------------------------------------------------------------------------------------------------------------------------------------
AXA Premier VIP Technology* Long-term growth of capital Alliance Capital Management L.P.
Dresdner RCM Global Investors LLC
Firsthand Capital Management Inc.
- ------------------------------------------------------------------------------------------------------------------------------------
EQ ADVISORS TRUST:
PORTFOLIO NAME OBJECTIVE ADVISER(S)
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/Aggressive Stock Seeks to achieve long-term growth of Alliance Capital Management L.P.
capital Marsico Capital Management, LLC
MFS Investment Management
Provident Investment Counsel, Inc.
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/Alliance Common Stock Seeks to achieve long-term growth of Alliance Capital Management L.P.
capital and increased income
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/Alliance Global Seeks long-term growth of capital Alliance Capital Management L.P.
- ------------------------------------------------------------------------------------------------------------------------------------
20 Contract features and benefits
PORTFOLIOS OF THE TRUSTS (CONTINUED)
- ---------------------------------------------------------------------------------------------------------------------------------
PORTFOLIO NAME OBJECTIVE ADVISER(S)
- ---------------------------------------------------------------------------------------------------------------------------------
EQ/Alliance Growth and Income Seeks to provide a high total return Alliance Capital Management L.P.
- ---------------------------------------------------------------------------------------------------------------------------------
EQ/Alliance Growth Investors Seeks to achieve the highest total return consistent Alliance Capital Management L.P.
with the Adviser's determination of reasonable risk
- ---------------------------------------------------------------------------------------------------------------------------------
EQ/Alliance Intermediate Seeks to achieve high current income consistent with Alliance Capital Management L.P.
Government Securities relative stability of principal
- ---------------------------------------------------------------------------------------------------------------------------------
EQ/Alliance International Seeks long-term growth of capital Alliance Capital Management L.P.
(including through its Bernstein
Investment Research and Management
Unit)
- ---------------------------------------------------------------------------------------------------------------------------------
EQ/Alliance Money Market Seeks to obtain a high level of current income, Alliance Capital Management L.P.
preserve its assets and maintain liquidity
- ---------------------------------------------------------------------------------------------------------------------------------
EQ/Alliance Premier Growth Seeks long-term growth of capital Alliance Capital Management L.P.
- ---------------------------------------------------------------------------------------------------------------------------------
EQ/Alliance Quality Bond Seeks to achieve high current income consistent Alliance Capital Management L.P.
with moderate risk of capital
- ---------------------------------------------------------------------------------------------------------------------------------
EQ/Alliance Small Cap Growth Seeks to achieve long-term growth of capital Alliance Capital Management L.P.
- ---------------------------------------------------------------------------------------------------------------------------------
EQ/Alliance Technology Seeks to achieve growth of capital. Current Alliance Capital Management L.P.
income is incidental to the Portfolio's objective
- ---------------------------------------------------------------------------------------------------------------------------------
EQ/AXP New Dimensions Seeks long-term growth of capital American Express Financial Corporation
- ---------------------------------------------------------------------------------------------------------------------------------
EQ/AXP Strategy Aggressive Seeks long-term growth of capital American Express Financial Corporation
- ---------------------------------------------------------------------------------------------------------------------------------
EQ/Balanced Seeks to achieve a high return through both Alliance Capital Management L.P.
appreciation of capital and current income Capital Guardian Trust Company
Jennison Associates, LLC
Prudential Investments LLC
Mercury Advisors
- ---------------------------------------------------------------------------------------------------------------------------------
EQ/Bernstein Diversified Value Seeks capital appreciation Alliance Capital Management L.P.,
through its Bernstein Investment
Research and Management Unit
- ---------------------------------------------------------------------------------------------------------------------------------
EQ/Calvert Socially Responsible Seeks long-term capital appreciation Calvert Asset Management Company, Inc.
Brown Capital Management, Inc.
- ---------------------------------------------------------------------------------------------------------------------------------
EQ/Capital Guardian International Seeks long-term growth of capital Capital Guardian Trust Company
- ---------------------------------------------------------------------------------------------------------------------------------
EQ/Capital Guardian Research Seeks long-term growth of capital Capital Guardian Trust Company
- ---------------------------------------------------------------------------------------------------------------------------------
EQ/Capital Guardian U.S. Equity Seeks long-term growth of capital Capital Guardian Trust Company
- ---------------------------------------------------------------------------------------------------------------------------------
EQ/Emerging Markets Equity Seeks long-term capital appreciation Morgan Stanley Investment Management
- ---------------------------------------------------------------------------------------------------------------------------------
EQ/Equity 500 Index Seeks a total return before expenses that approximates Alliance Capital Management L.P.
the total return performance of the S&P 500 Index,
including reinvestment of dividends, at a risk level
consistent with that of the S&P 500 Index
- ---------------------------------------------------------------------------------------------------------------------------------
EQ/Evergreen Omega Seeks long-term capital growth Evergreen Investment Management
Company, LLC
- ---------------------------------------------------------------------------------------------------------------------------------
EQ/FI Mid Cap Seeks long-term growth of capital Fidelity Management & Research Company
- ---------------------------------------------------------------------------------------------------------------------------------
EQ/FI Small/Mid Cap Value Seeks long-term capital appreciation Fidelity Management & Research Company
- ---------------------------------------------------------------------------------------------------------------------------------
EQ/High Yield Seeks to achieve a high total return through a combina- Alliance Capital Management L.P.
tion of current income and capital appreciation
- ---------------------------------------------------------------------------------------------------------------------------------
Contract features and benefits 21
PORTFOLIOS OF THE TRUSTS (CONTINUED)
- ---------------------------------------------------------------------------------------------------------------------------------
PORTFOLIO NAME OBJECTIVE ADVISER(S)
- ---------------------------------------------------------------------------------------------------------------------------------
EQ/International Equity Index Seeks to replicate as closely as possible (before Deutsche Asset Management Inc.
deduction of Portfolio expenses) the total return
of the MSCI EAFE Index
- ---------------------------------------------------------------------------------------------------------------------------------
EQ/J.P. Morgan Core Bond Seeks to provide a high total return consistent with J.P. Morgan Investment Management, Inc.
moderate risk of capital and maintenance of liquidity
- ---------------------------------------------------------------------------------------------------------------------------------
EQ/Janus Large Cap Growth Seeks long-term growth of capital Janus Capital Management LLC
- ---------------------------------------------------------------------------------------------------------------------------------
EQ/Lazard Small Cap Value Seeks capital appreciation Lazard Asset Management
- ---------------------------------------------------------------------------------------------------------------------------------
EQ/Marsico Focus* Seeks to achieve long-term growth of capital Marsico Capital Management, LLC
- ---------------------------------------------------------------------------------------------------------------------------------
EQ/Mercury Basic Value Equity Seeks capital appreciation and secondarily, income Mercury Advisors
- ---------------------------------------------------------------------------------------------------------------------------------
EQ/MFS Emerging Growth Seeks to provide long-term capital growth MFS Investment Management
Companies
- ---------------------------------------------------------------------------------------------------------------------------------
EQ/MFS Investors Trust Seeks long-term growth of capital with a secondary MFS Investment Management
objective to seek reasonable current income
- ---------------------------------------------------------------------------------------------------------------------------------
EQ/MFS Research Seeks to provide long-term growth of capital and future MFS Investment Management
income
- ---------------------------------------------------------------------------------------------------------------------------------
EQ/Putnam Growth & Income Seeks capital growth. Current income is a secondary Putnam Investment Management, LLC
Value objective
- ---------------------------------------------------------------------------------------------------------------------------------
EQ/Putnam International Equity Seeks capital appreciation Putnam Investment Management, LLC
- ---------------------------------------------------------------------------------------------------------------------------------
EQ/Putnam Voyager Seeks long-term growth of capital and any increased Putnam Investment Management, LLC
income that results from this growth
- ---------------------------------------------------------------------------------------------------------------------------------
EQ/Small Company Index Seeks to replicate as closely as possible (before Deutsche Asset Management Inc.
deduction of Portfolio expenses) the total return
of the Russell 2000 Index
- ---------------------------------------------------------------------------------------------------------------------------------
* Subject to state availability.
Other important information about the portfolios is included in the
prospectuses for each Trust attached at the end of this prospectus.
22 Contract features and benefits
GUARANTEED INTEREST OPTION
The guaranteed interest option is part of our general account and pays interest
at guaranteed rates. We discuss our general account under "More information"
later in this Prospectus.
We assign an interest rate to each amount allocated to the guaranteed interest
option. This rate is guaranteed for a specified period.
Therefore, different interest rates may apply to different amounts in the
guaranteed interest option.
We credit interest daily to amounts in the guaranteed interest option. There
are three levels of interest in effect at the same time in the guaranteed
interest option:
(1) the minimum interest rate guaranteed over the life of the contract,
(2) the yearly guaranteed interest rate for the calendar year, and
(3) the current interest rate.
We set current interest rates periodically, according to our procedures that we
have in effect at the time. All interest rates are effective annual rates, but
before deduction of annual administrative charges or any withdrawal charges.
The minimum yearly guaranteed interest rate is 3% for 2002. The yearly rates we
set will never be less than the minimum guaranteed interest rate of 3% for the
life of the contract. Current interest rates will never be less than the yearly
guaranteed interest rate.
FIXED MATURITY OPTIONS
We offer fixed maturity options with maturity dates ranging from one to ten
years. You can allocate your contributions to one or more of these fixed
maturity options. However, you may not allocate more than one contribution to
any one fixed maturity option. Your contributions will accumulate interest at
the "rate to maturity" for each fixed maturity option. The total amount you
allocate to and accumulate in each fixed maturity option is called the "fixed
maturity amount."
The fixed maturity options are not available in contracts issued in Maryland.
For contracts issued in New York, see "Charges and expenses" for information on
withdrawal charges when amounts are allocated to the fixed maturity options.
- --------------------------------------------------------------------------------
Fixed maturity options range from one to ten years to maturity.
- --------------------------------------------------------------------------------
The rate to maturity you will receive for each fixed maturity option is the
rate to maturity in effect for new contributions allocated to that fixed
maturity option on the date we apply your contribution. If you make any
withdrawals or transfers from a fixed maturity option before the maturity date,
we will make a "market value adjustment" that may increase or decrease any
fixed maturity amount you have left in that fixed maturity option. We discuss
the market value adjustment below and in greater detail later in this
Prospectus in "More information."
On the maturity date of a fixed maturity option, your fixed maturity amount,
assuming you have not made any withdrawals or transfers, will equal your
contribution to that fixed maturity option plus interest, at the rate to
maturity for that contribution. This is the fixed maturity option's "maturity
value." Before maturity, the current value we will report for your fixed
maturity amount will reflect a market value adjustment. Your current value will
reflect the market value adjustment that we would make if you were to withdraw
all of your fixed maturity amounts on the date of the report. We call this your
"market adjusted amount."
FIXED MATURITY OPTIONS AND MATURITY DATES. We currently offer fixed maturity
options ending on June 15th for each of the maturity years 2003 through 2012.
Not all of these fixed maturity options will be available for annuitant ages 76
and above. See "Allocating your contributions" later in this Prospectus. As
fixed maturity options expire, we expect to add maturity years so that
generally 10 fixed maturity options are available at any time.
We will not accept allocations to a fixed maturity option if on the date the
contribution is to be applied:
o you previously allocated a contribution or made a transfer to the same fixed
maturity option; or
o the rate to maturity is 3%; or
o the fixed maturity option's maturity date is within 45 days; or
o the fixed maturity option's maturity date is later than the date annuity
payments are to begin.
YOUR CHOICES AT THE MATURITY DATE. We will notify you at least 45 days before
each of your fixed maturity options is scheduled to mature. At that time, you
may choose to have one of the following take place on the maturity date, as
long as none of the conditions listed above or in "Allocating your
contributions," below would apply:
(a) transfer the maturity value into another available fixed maturity option,
or into any of the variable investment options; or
(b) withdraw the maturity value (there may be a withdrawal charge).
If we do not receive your choice on or before the fixed maturity option's
maturity date, we will automatically transfer your maturity value into the
fixed maturity option that will mature next (or another investment option if we
are required to do so by any state regulation). We may change our procedures in
the future.
MARKET VALUE ADJUSTMENT. If you make any withdrawals (including transfers,
surrender or termination of your contract, or when we make deductions for
charges) from a fixed maturity option before it matures we will make a market
value adjustment, which will increase or decrease any fixed maturity amount you
have in that fixed maturity option. The amount of the adjustment will depend on
two factors:
(a) the difference between the rate to maturity that applies to the amount
being withdrawn and the rate to maturity in effect at that time for new
allocations to that same fixed maturity option, and
(b) the length of time remaining until the maturity date.
In general, if interest rates rise from the time that you originally allocate
an amount to a fixed maturity option to the time that you take a withdrawal,
the market value adjustment will be negative. Likewise, if interest rates drop
at the end of that time, the market value adjustment will be positive. Also,
the amount of the market value adjustment, either up or down, will be greater
the longer the time remaining until the fixed maturity option's maturity date.
Therefore, it
Contract features and benefits 23
is possible that the market value adjustment could greatly reduce your value in
the fixed maturity options, particularly in the fixed maturity options with
later maturity dates.
We provide an illustration of the market adjusted amount of specified maturity
values, an explanation of how we calculate the market value adjustment, and
information concerning our general account and investments purchased with
amounts allocated to the fixed maturity options, in "More information" later in
this Prospectus. Appendix II at the end of this Prospectus provides an example
of how the market value adjustment is calculated.
SELECTING YOUR INVESTMENT METHOD
You must choose one of the following methods for selecting your investment
options:
o MAXIMUM INVESTMENT OPTIONS CHOICE. Under this method, you may allocate
contributions or transfer funds to any of the available investment options
listed in A and B in the investment options chart. You can make transfers
whenever you choose. However, there will be restrictions on the amount you can
transfer out of the guaranteed interest option listed in A.
o MAXIMUM TRANSFER FLEXIBILITY. Under this method, you may allocate
contributions or transfer funds to any of the available investment options
listed in A in the investment options chart and no transfer restrictions will
apply.
o TEMPORARY REMOVAL OF TRANSFER RESTRICTIONS THAT APPLY TO THE INVESTMENT
METHODS. From time to time, we may remove certain restrictions that apply to
your investment method. If we do so, we will tell you. We will also tell you at
least 45 days in advance of the day that we intend to reimpose the transfer
restrictions. When we reimpose the transfer restrictions that apply to your
investment method, amounts that are in any investment options that are not
available under your investment method can remain in these options, but you
will not be permitted to allocate new contributions or make additional
transfers (including through our rebalancing program) into these options.
- --------------------------------------------------------------------------------
INVESTMENT OPTIONS
- --------------------------------------------------------------------------------
A
- --------------------------------------------------------------------------------
o Guaranteed Interest Option
- --------------------------------------------------------------------------------
DOMESTIC STOCKS INTERNATIONAL STOCKS
- --------------------------------------------------------------------------------
o AXA Premier VIP Core Bond o AXA Premier VIP International Equity
o AXA Premier VIP Health Care o EQ/Alliance Global
o AXA Premier VIP Large Cap Core o EQ/Alliance International
Equity o EQ/Capital Guardian International
o AXA Premier VIP Large Cap Growth o EQ/Emerging Markets Equity
o AXA Premier VIP Large Cap Value o EQ/International Equity Index
o AXA Premier VIP Small/Mid Cap o EQ/Putnam International Equity
Growth
o AXA Premier VIP Small/Mid Cap Value
o AXA Premier VIP Technology
o EQ/Aggressive Stock
o EQ/Alliance Common Stock
o EQ/Alliance Growth and Income
o EQ/Alliance Premier Growth
o EQ/Alliance Small Cap Growth
o EQ/Alliance Technology
o EQ/AXP New Dimensions
o EQ/AXP Strategy Aggressive
o EQ/Bernstein Diversified Value
o EQ/Calvert Socially Responsible
o EQ/Capital Guardian Research
o EQ/Capital Guardian U.S. Equity
o EQ/Equity 500 Index
o EQ/Evergreen Omega
o EQ/FI Mid Cap
o EQ/FI Small/Mid Cap
o EQ/Janus Large Cap Growth
o EQ/Lazard Small Cap Value
o EQ/Marsico Focus
o EQ/Mercury Basic Value Equity
o EQ/MFS Emerging Growth Companies
o EQ/MFS Investors Trust
o EQ/MFS Research
o EQ/Putnam Growth & Income Value
o EQ/Putnam Voyager
o EQ/Small Company Index
- --------------------------------------------------------------------------------
BALANCED/HYBRID
- --------------------------------------------------------------------------------
o EQ/Alliance Growth Investors o EQ/Balanced
- --------------------------------------------------------------------------------
B
- --------------------------------------------------------------------------------
FIXED INCOME
- --------------------------------------------------------------------------------
o EQ/Alliance Intermediate Government o EQ/Alliance Quality Bond
Securities o EQ/High Yield
o EQ/Alliance Money Market o EQ/J.P. Morgan Core Bond
- --------------------------------------------------------------------------------
FIXED MATURITY OPTIONS
- --------------------------------------------------------------------------------
Transfer restrictions apply as indicated above under "Fixed maturity
options and maturity dates."
- --------------------------------------------------------------------------------
24 Contract features and benefits
o PRINCIPAL ASSURANCE ALLOCATION Under this allocation program, you select a
fixed maturity option. We specify the portion of your initial contribution to
be allocated to that fixed maturity option in an amount that will cause the
maturity value to equal the amount of your entire initial contribution on the
fixed maturity option's maturity date. The maturity date you select generally
may not be later than 10 years, or earlier than 6 years from your contract
date. You allocate the rest of your contribution to the variable investment
options however you choose.
For example, if your initial contribution is $10,000, and on February 15, 2002
you chose the fixed maturity option with a maturity date of June 15, 2011,
since the rate to maturity was 5.65% on February 15, 2002, we would have
allocated $5,987 to that fixed maturity option and the balance to your choice
of variable investment options. On the maturity date your value in the fixed
maturity option would be $10,000.
The principal assurance allocation is only available for annuitant ages 75 or
younger when the contract is issued. If you are purchasing an Equitable Life
traditional IRA contract, before you select a maturity year that would extend
beyond the year in which you will reach age 70-1/2, you should consider whether
your value in the variable investment options, or your other traditional IRA
funds are sufficient to meet your required minimum distributions. See "Tax
information" later in this Prospectus.
ALLOCATING YOUR CONTRIBUTIONS
Once you have made your investment method choice, you may allocate your
contributions to one or more, or all, of the investment options that you have
chosen, subject to any restrictions under the investment method you chose.
However, you may not allocate more than one contribution to any one fixed
maturity option. If the annuitant is age 76 or older, you may only allocate
contributions to fixed maturity options with maturities of five years or less.
Allocations must be in whole percentages and you may change your allocation
percentages at any time. However, the total of your allocations must equal
100%. Once your contributions are allocated to the investment options they
become part of your account value. We discuss account value later in this
Prospectus in "Determining your contract's value." After your contract is
issued, you may request that we add or eliminate any variable investment
options that result in transfer restrictions. We reserve the right to deny your
request. See "Transferring your money among investment options" later in this
Prospectus.
YOUR RIGHT TO CANCEL WITHIN A CERTAIN NUMBER OF DAYS
If for any reason you are not satisfied with your contract, you may return it
to us for a refund. To exercise this cancellation right you must mail the
contract directly to our processing office within 10 days after you receive it.
If state law requires, this "free look" period may be longer.
For contributions allocated to the variable investment options, your refund
will equal your contributions, reflecting any investment gain or loss that also
reflects the daily charges we deduct. For contributions allocated to the
guaranteed interest option, your refund will equal the amount of the
contributions but will not include interest. For contributions allocated to the
fixed maturity options, your refund will equal the amount of the contribution
allocated to the fixed maturity options reflecting any positive or negative
market value adjustments. Some states require that we refund the full amount of
your contribution (not including any investment gain or loss, interest, or
market value adjustment). For IRA contracts returned to us within seven days
after you receive it, we are required to refund the full amount of your
contribution.
We may require that you wait six months before you apply for a contract with us
again if:
o you cancel your contract during the free look period; or
o you change your mind before you receive your contract whether we have
received your contribution or not.
Please see "Tax information" later in this Prospectus for possible consequences
of cancelling your contract.
In addition to the cancellation right described above, if you fully or
partially convert an existing Traditional IRA contract to a Roth IRA contract,
you may cancel your Roth IRA contract and return to a Traditional IRA contract.
Our processing office, or your financial professional, can provide you with the
cancellation instructions. Ask for the form entitled "EQUI-VEST(R) Roth IRA
Re-Characterization Form."
DEATH BENEFIT
Your contract provides a death benefit. If you do not elect the ratcheted death
benefit described below, the death benefit is equal to your account value
(without adjustment for any otherwise applicable negative market value
adjustment) as of the date we receive satisfactory proof of death, any required
instructions for the method of payment, information and forms necessary to
effect payment or the minimum death benefit, whichever provides the highest
amount. The minimum death benefit is equal to your total contributions, less
withdrawals and any withdrawal charges, and any taxes that apply.
If you elect the ratcheted death benefit, the death benefit is equal to your
account value (without adjustment for any otherwise applicable negative market
value adjustment) as of the date we receive satisfactory proof of the
annuitant's death, any required instructions for the method of payment,
information and forms necessary to effect payment or the ratcheted death
benefit on the date of the annuitant's death, less any subsequent withdrawals,
withdrawal charges and taxes that apply, whichever provides the highest amount.
You should note that in certain circumstances, where you have made withdrawals
from your contract, the minimum death benefit will provide a higher benefit
than the ratcheted death benefit.
RATCHETED DEATH BENEFIT
For an additional fee, you may elect the ratcheted death benefit. On the
contract date, your ratcheted death benefit equals your initial contribution.
Then, on each third contract date anniversary, until the annuitant is age 90,
we will determine your ratcheted death benefit by comparing your current
ratcheted death benefit to your account value on that third contract date
anniversary. If your account value is higher
Contract features and benefits 25
than your ratcheted death benefit, we will increase your ratcheted death
benefit to equal your account value. On the other hand, if your account value
on the third contract date anniversary is less than your ratcheted death
benefit, we will not adjust your ratcheted death benefit either up or down.
If you make additional contributions, we will increase your current ratcheted
death benefit by the dollar amount of the contribution on the date the
contribution is allocated to your investment options. If you take a withdrawal
from your contract, we will adjust your death benefit on the date you take the
withdrawal.
Each withdrawal you make will reduce the amount of your current ratcheted death
benefit on a pro rata basis. Reduction on a pro rata basis means that we
calculate the percentage of your current account value that is being withdrawn
and we reduce your current ratcheted death benefit by that same percentage. For
example, if your account value is $30,000 and you withdraw $12,000, you have
withdrawn 40% of your account value. If your ratcheted death benefit was
$40,000 before the withdrawal, it would be reduced by $16,000 ($40,000 x .40)
and your new ratcheted death benefit after the withdrawal would be $24,000
($40,000 - $16,000). You may only elect the ratcheted death benefit at the time
you apply for a contract if the annuitant is less than age 87 when the contract
is issued. Once you elect this benefit, you may not cancel it as long as the
contract is in effect.
See Appendix III at the end of this Prospectus for an example of how we
calculate the death benefit.
26 Contract features and benefits
2. Determining your contract's value
- --------------------------------------------------------------------------------
YOUR ACCOUNT VALUE AND CASH VALUE
Your "account value" is the total of the: (i) values you have in the variable
investment options; (ii) guaranteed interest option; and (iii) market adjusted
amounts you have in the fixed maturity options. These amounts are subject to
certain fees and charges discussed under "Charges and expenses" later in this
Prospectus.
Your contract also has a "cash value." At any time before annuity payments
begin, your contract's cash value is equal to the account value less (i) any
withdrawal charge that may apply and (ii) the total amount or a pro rata
portion of the annual administrative charge. Please see "Surrender of your
contract to receive its cash value" in "Accessing your money" later in this
Prospectus.
YOUR CONTRACT'S VALUE IN THE VARIABLE INVESTMENT OPTIONS
Each variable investment option invests in shares of a corresponding portfolio.
Your value in each variable investment option is measured by "units." The value
of your units will increase or decrease as though you had invested it in the
corresponding portfolio's shares directly. Your value, however, will be reduced
by the amount of the fees and charges that we deduct under the contract.
- --------------------------------------------------------------------------------
Units measure your value in each variable investment option.
- --------------------------------------------------------------------------------
The unit value for each variable investment option depends on the investment
performance of that option minus daily charges for mortality and expense risks
and other expenses. On any day, your value in any variable investment option
equals the number of units credited to that option, adjusted for any units
deducted from your contract under that option, multiplied by that day's value
for one unit. The number of your contract units in any variable investment
option does not change unless they are:
(i) increased to reflect additional contributions;
(ii) decreased to reflect a withdrawal (plus applicable withdrawal charges);
or
(iii) increased to reflect a transfer into, or decreased to reflect a
transfer out of a variable investment option.
In addition, when we deduct the annual administrative charge, third-party
transfer or exchange charge, or the ratcheted death benefit charge, we will
reduce the number of units credited to your contract. A description of how unit
values are calculated is found in the SAI.
YOUR CONTRACT'S VALUE IN THE GUARANTEED INTEREST OPTION
Your value in the guaranteed interest option at any time will equal: your
contributions and transfers to that option, plus interest, minus withdrawals
and transfers out of the option, and charges we deduct.
YOUR CONTRACT'S VALUE IN THE FIXED MATURITY OPTIONS
Your value in each fixed maturity option at any time before the maturity date
is the market adjusted amount in each option. This is equivalent to your fixed
maturity amount increased or decreased by the market value adjustment. Your
value, therefore, may be higher or lower than your contributions (less
withdrawals) accumulated at the rate to maturity. At the maturity date, your
value in the fixed maturity option will equal its maturity value.
Determining your contract's value 27
3. Transferring your money among investment options
- --------------------------------------------------------------------------------
TRANSFERRING YOUR ACCOUNT VALUE
At any time before the date annuity payments are to begin, you can transfer
some or all of your account value among the investment options, subject to the
following:
o You must transfer at least $300 of account value or, if less, the entire
amount in the investment option. We may waive the $300 requirement.
o You may not transfer to a fixed maturity option in which you already have
value.
o If the annuitant is age 76 or older, you must limit your transfers to fixed
maturity options to those with maturities of five years or less. You may
not transfer to a fixed maturity option if its maturity date is later than
the date annuity payments are to begin.
o If you make transfers out of a fixed maturity option other than at its
maturity date the transfer may cause a market value adjustment.
o If you choose the maximum investment options choice method for selecting
investment options, the maximum amount you may transfer in any contract
year from the guaranteed interest option to any other investment option is
(a) 25% of the amount you had in the guaranteed interest option on the
last day of the prior contract year or, if greater, (b) the total of all
amounts you transferred from the guaranteed interest option to any other
investment option in the prior contract year.
o If you transfer money from another financial institution into the guaranteed
interest option during your first contract year, and if you have selected
maximum investment options choice, you may, during the balance of that
contract year, transfer up to 25% of such initial guaranteed interest
option balance to any other investment option.
Subject to the terms of your contract, upon advance notice, we may change or
establish additional restrictions on transfers among the investment options. A
transfer request does not change your percentages for allocating current or
future contributions among the investment options.
You may request a transfer in writing or by telephone using TOPS or online
using EQAccess. You must send in all signed written requests directly to our
processing office. Transfer requests should specify:
(1) the contract number,
(2) the dollar amounts to be transferred, and
(3) the investment options to and from which you are transferring.
We will confirm all transfers in writing.
DISRUPTIVE TRANSFER ACTIVITY
You should note that the EQUI-VEST(R) contract is not designed for professional
"market timing" organizations, or other organizations or individuals engaging
in a market timing strategy, making programmed transfers, frequent transfers or
transfers that are large in relation to the total assets of the underlying
portfolio. These kind of strategies and transfer activities are disruptive to
the underlying portfolios in which the variable investment options invest. If
we determine that your transfer patterns among the variable investment options
are disruptive to the underlying portfolios, we may, among other things,
restrict the availability of personal telephone requests, facsimile
transmissions, automated telephone services, Internet services or any
electronic transfer services. We may also refuse to act on transfer
instructions of an agent who is acting on behalf of one or more owners.
We currently consider transfers into and out of (or vice versa) the same
variable investment option within a five business day period as potentially
disruptive transfer activity. In order to prevent disruptive activity, we
monitor the frequency of transfers, including the size of transfers in relation
to portfolio assets, in each underlying portfolio, and we take appropriate
action, which may include the actions described above to restrict availability
of voice, fax and automated transaction services, when we consider the activity
of owners to be disruptive. We currently provide a letter to owners who have
engaged in such activity of our intention to restrict such services. However,
we may not continue to provide such letters. We may also, in our sole
discretion and without further notice, change what we consider disruptive
transfer activity, as well as change our procedures to restrict this activity.
AUTOMATIC TRANSFER OPTIONS
INVESTMENT SIMPLIFIER
You may choose from two automatic options for transferring amounts from the
guaranteed interest option to the variable investment options. The transfer
options are the "fixed-dollar option" and the "interest sweep." You may select
one or the other, but not both.
FIXED-DOLLAR OPTION. Under this option you may elect to have a fixed-dollar
amount transferred out of the guaranteed interest option and into the variable
investment options of your choice on a monthly basis. You can specify the
number of monthly transfers or instruct us to continue to make monthly
transfers until all available amounts in the guaranteed interest option have
been transferred out.
In order to elect the fixed-dollar option, you must have a minimum of $5,000 in
the guaranteed interest option on the date we receive your election form at our
processing office. You also must elect to transfer at least $50 per month. The
fixed-dollar option is subject to the guaranteed interest option transfer
limitation described above.
INTEREST SWEEP. Under the interest sweep, we will make transfers on a monthly
basis from amounts in the guaranteed interest option. The amount we will
transfer will be the interest credited to amounts you have in the guaranteed
interest option from the last business day of the prior month to the last
business day of the current month. You must have at least $7,500 in the
guaranteed interest option on the date we receive your election and on the last
business day of each month thereafter to participate in the interest sweep
option.
28 Transferring your money among investment options
The fixed-dollar option and the interest sweep feature are forms of dollar-cost
averaging. Dollar-cost averaging allows you to gradually allocate amounts to
the variable investment options by periodically transferring approximately the
same dollar amount to the variable investment options you select. This will
cause you to purchase more units if the unit's value is low and fewer units if
the unit's value is high. Therefore, you may get a lower average cost per unit
over the long term. This plan of investing, however, does not guarantee that
you will earn a profit or be protected against losses.
WHEN YOUR PARTICIPATION IN THE INVESTMENT SIMPLIFIER WILL END. Your
participation in the investment simplifier will end:
o Under the fixed-dollar option, when either the number of designated monthly
transfers have been completed or the amount you have available in the
guaranteed interest option has been transferred out.
o Under the interest sweep, when the amount you have in the guaranteed interest
option falls below $7,500 (determined on the last business day of the
month) for two months in a row.
o Under either option, on the date we receive at our processing office, your
written request to cancel automatic transfers, or on the date your
contract terminates.
REBALANCING YOUR ACCOUNT VALUE
We currently offer a rebalancing program that you can use to automatically
reallocate your account value among the variable investment options. You must
tell us:
(a) the percentage you want invested in each variable investment option (whole
percentages only), and
(b) how often you want the rebalancing to occur (quarterly, semiannually, or
annually).
While your rebalancing program is in effect, we will transfer amounts among
each variable investment option so that the percentage of your account value
that you specify is invested in each option at the end of each rebalancing
date. Your entire account value in the variable investment options must be
included in the rebalancing program.
- --------------------------------------------------------------------------------
Rebalancing does not assure a profit or protect against loss. You should
periodically review your allocation percentages as your needs change. You may
want to discuss the rebalancing program with your financial professional and/or
financial adviser before electing the program.
- --------------------------------------------------------------------------------
You may elect the rebalancing program at any time. To be eligible, you must
have at least $5,000 of account value in the variable investment options.
Rebalancing is not available for amounts you have allocated in the guaranteed
interest option or in the fixed maturity options.
If you request a transfer while the rebalancing program is in effect, we will
process the transfer as requested. The rebalancing program will then remain in
effect unless you request in writing that it be cancelled.
You may change your allocation instructions or cancel the program at any time.
Transferring your money among investment options 29
4. Accessing your money
- --------------------------------------------------------------------------------
WITHDRAWING YOUR ACCOUNT VALUE
You have several ways to withdraw your account value before annuity payments
begin. The table below shows the methods available under each type of contract.
More information follows the table. For the tax consequences of taking
withdrawals, see "Tax information" later in this Prospectus.
- --------------------------------------------------------------------------------
METHOD OF WITHDRAWAL
- --------------------------------------------------------------------------------
MINIMUM
CONTRACT LUMP SUM SYSTEMATIC DISTRIBUTION
- --------------------------------------------------------------------------------
NQ Yes Yes No
- --------------------------------------------------------------------------------
Traditional IRA Yes Yes Yes
- --------------------------------------------------------------------------------
Roth IRA Yes Yes No
- --------------------------------------------------------------------------------
LUMP SUM WITHDRAWALS
(All Contracts)
You may take lump sum withdrawals from your account value at any time while the
annuitant is living and before annuity payments begin. The minimum amount you
may withdraw at any time is $300. If you request a withdrawal that leaves your
account value less than $500, we may treat it as a request to surrender the
contract for its cash value. See "Surrender of your contract to receive its
cash value" below.
Lump sum withdrawals in excess of the 15% free withdrawal amount may be subject
to a withdrawal charge.
SYSTEMATIC WITHDRAWALS
(All Contracts)
If you have at least $20,000 of account value in the variable investment
options and the guaranteed interest option, you may take systematic
withdrawals. You may take systematic withdrawals on a monthly or quarterly
basis. The minimum amount you may take for each withdrawal is $250. We will
make the withdrawals on any day of the month that you select as long as it is
not later than the 28th day of the month. If you do not select a date, your
withdrawals will be made on the first day of the month. A check for the amount
of the withdrawal will be mailed to you or, if you prefer, we will
electronically transfer the money to your checking account.
You may withdraw either the amount of interest earned in the guaranteed
interest option or a fixed-dollar amount from either the variable investment
options or the guaranteed interest option. If you elect the interest option, a
minimum of $20,000 must be maintained in the guaranteed interest option. If you
elect the fixed-dollar option, you do not have to maintain a minimum amount.
If you choose to have a fixed dollar amount taken from the variable investment
options, you may elect to have the amount of the withdrawal subtracted from
your account value in one of three ways:
(1) pro rata from more than one variable investment option (without using up
your total value in those options); or
(2) pro rata from more than one variable investment option (until your value in
those options is used up); or
(3) you may specify a dollar amount from only one variable investment option.
You can cancel the systematic withdrawal option at any time.
Amounts withdrawn in excess of the 15% free withdrawal amount may be subject to
a withdrawal charge.
LIFETIME MINIMUM DISTRIBUTION WITHDRAWALS
(Traditional IRA contracts -- See "Tax information" later in this Prospectus)
We offer the minimum distribution withdrawal option to help you meet or exceed
lifetime required minimum distributions under federal income tax rules. You may
elect this option in the year in which you reach age 70-1/2 and have account
value in the variable investment options and the guaranteed interest option of
at least $2,000. The minimum amount we will pay out is $300, or if less, your
account value. If your account value is less than $500 after the withdrawal, we
may terminate your contract and pay you its cash value. You may elect the
method you want us to use to calculate your minimum distribution withdrawal
from the choices we offer. Currently, minimum distribution withdrawal payments
will be made annually. We will calculate your payment each year based on your
account value at the end of each prior calendar year, based on the method you
choose. See "Required minimum distributions" under "Individual retirement
arrangements ("IRAs") in "Tax information" later in this Prospectus for your
specific type of retirement arrangement.
Currently, we do not impose a withdrawal charge on minimum distribution
withdrawals that are calculated based on the proposed revisions to the minimum
distribution rules and your EQUI-VEST(R) contract account value. (See "Required
minimum distributions" in "Tax Information" later in this Prospectus.) The
minimum distribution withdrawal will be taken into account in determining if
any subsequent withdrawal taken in the same contract year exceeds the 15% free
withdrawal amount.
- --------------------------------------------------------------------------------
We will send to Traditional IRA owners a form outlining the minimum
distribution options available in the year you reach age 70-1/2 (if you have not
begun your annuity payments before that time).
- --------------------------------------------------------------------------------
HOW WITHDRAWALS ARE TAKEN FROM YOUR ACCOUNT VALUE
Unless you specify otherwise, we will subtract your withdrawals on a pro rata
basis from your values in the variable investment options and the guaranteed
interest option. If there is insufficient value or no value in the variable
investment options and the guaranteed interest option, any additional amount of
the withdrawal required or the total amount of the withdrawal will be withdrawn
from the fixed maturity options in
30 Accessing your money
order of the earliest maturity date(s). A market value adjustment may apply if
withdrawals are taken from the fixed maturity options.
AUTOMATIC DEPOSIT SERVICE
If you are receiving required minimum distribution payments from a Traditional
IRA contract, you may use our automatic deposit service.
Under this service we will automatically deposit the required minimum
distribution payment from your Traditional IRA contract directly into an
existing EQUI-VEST(R) NQ or Roth IRA or an existing EQUI-VEST(R) ExpressSM NQ
or Roth IRA contract according to your allocation instructions. Please note
that you must have compensation to make regular contributions to Roth IRAs. See
"Tax information" later in this Prospectus.
DEPOSIT OPTION FOR NQ CONTRACTS ONLY
You can elect the deposit option for your benefit while you live, or for the
benefit of your beneficiary.
Proceeds from your NQ contract can be deposited with us for a period you select
(including one for as long as the annuitant lives). We will hold the amounts in
our general account. We will credit interest on the amounts at a guaranteed
rate for the specified period. We will pay out the interest on the amount
deposited at least once each year.
If you elect this option for your benefit, you deposit the amount with us that
you would otherwise apply to an annuity payout option. If you elect this option
for your beneficiary before the annuitant's death, death benefit proceeds can
be left on deposit with us subject to certain restrictions, instead of being
paid out to the beneficiary.
Other restrictions apply to the deposit option. Your financial professional can
provide more information about this option, or you may call our processing
office.
SURRENDER OF YOUR CONTRACT TO RECEIVE ITS CASH VALUE
You may surrender your contract to receive its cash value at any time while the
annuitant is living and before you begin to receive annuity payments. For a
surrender to be effective, we must receive your written request and your
contract at our processing office. We will determine your cash value on the
date we receive the required information. All benefits under the contract will
terminate as of that date.
You may receive your cash value in a single sum payment or apply it to one or
more of the annuity payout options. See "Your annuity payout options" below. We
will usually pay the cash value within seven calendar days, but we may delay
payment as described in "When to expect payments" below. For the tax
consequences of surrenders, see "Tax information" later in this Prospectus.
TERMINATION
We may terminate your contract and pay you the cash value if:
(1) your account value is less than $500 and you have not made contributions to
your contract for a period of three years; or
(2) you request a lump sum withdrawal that reduces your account value to an
amount less than $500; or
(3) you have not made any contributions within 120 days from your contract
date.
WHEN TO EXPECT PAYMENTS
Generally, we will fulfill requests for payments out of the variable investment
options within seven calendar days after the date of the transaction to which
the request relates. These transactions may include applying proceeds to a
variable annuity payout option, payment of a death benefit, payment of any
amount you withdraw (less any withdrawal charge) and, upon surrender or
termination, payment of the cash value. We may postpone such payments or
applying proceeds for any period during which:
(1) the New York Stock Exchange is closed or restricts trading,
(2) sales of securities or determination of the fair value of a variable
investment option's assets is not reasonably practicable because of an
emergency, or
(3) the SEC, by order, permits us to defer payment to protect people remaining
in the variable investment options.
We can defer payment of any portion of your values in the guaranteed interest
option and the fixed maturity options (other than for death benefits) for up to
six months while you are living. We also may defer payments for a reasonable
amount of time (not to exceed 15 days) while we are waiting for a contribution
check to clear.
All payments are made by check and are mailed to you (or the payee named in a
tax-free exchange) by U.S. mail, unless you request that we use an express
delivery service at your expense.
YOUR ANNUITY PAYOUT OPTIONS
EQUI-VEST(R) offers you several choices of annuity payout options. Some enable
you to receive fixed annuity payments, and others enable you to receive
variable annuity payments.
You can choose from among the annuity payout options listed below. Restrictions
may apply, depending on the type of contract you own or the annuitant's age at
contract issue.
ANNUITY PAYOUT OPTIONS
You choose from among the following annuity payout options:
- --------------------------------------------------------------------------------
Fixed annuity payout options o Life annuity
o Life annuity with period
certain
o Life annuity with refund
certain
o Period certain annuity
- --------------------------------------------------------------------------------
Variable Immediate Annuity payout o Life annuity (not available in
options New York)
o Life annuity with period
certain
- --------------------------------------------------------------------------------
o Life annuity: An annuity that guarantees payments for the rest of the
annuitant's life. Payments end with the last monthly payment before the
annuitant's death. Because there is no continuation of
Accessing your money 31
benefits following the annuitant's death with this payout option, it
provides the highest monthly payment of any of the life annuity options, so
long as the annuitant is living.
o Life annuity with period certain: An annuity that guarantees payments for the
rest of the annuitant's life. If the annuitant dies before the end of a
selected period of time ("period certain"), payments continue to the
beneficiary for the balance of the period certain. The period certain
cannot extend beyond the annuitant's life expectancy or the joint life
expectancy of you and your spouse. A life annuity with a period certain is
the form of annuity under the contracts that you will receive if you do
not elect a different payout option. In this case, the period certain will
be based on the annuitant's age and will not exceed 10 years or the
annuitant's life expectancy.
o Life annuity with refund certain: An annuity that guarantees payments for the
rest of the annuitant's life. If the annuitant dies before the amount
applied to purchase the annuity option has been recovered, payments to the
beneficiary will continue until that amount has been recovered. This
payout option is available only as a fixed annuity.
o Period certain annuity: An annuity that guarantees payments for a specific
period of time, usually 5, 10, 15, or 20 years. This guarantee period may
not exceed the annuitant's life expectancy. This option does not guarantee
payments for the rest of the annuitant's life. It does not permit any
repayment of the unpaid principal, so you cannot elect to receive part of
the payments as a single sum payment with the rest paid in monthly annuity
payments. This payout option is available only as a fixed annuity.
The life annuity, life annuity with period certain, and life annuity with
refund certain payout options are available on a single life or joint and
survivor life basis. The joint and survivor life annuity guarantees payments
for the rest of the annuitant's life and, after the annuitant's death, payments
continue to the survivor. We may offer other payout options not outlined here.
Your financial professional can provide details.
FIXED ANNUITY PAYOUT OPTION
With fixed annuities, we guarantee fixed annuity payments that will be based
either on the tables of guaranteed annuity payments in your contract or on our
then current annuity rates, whichever is more favorable for you.
VARIABLE IMMEDIATE ANNUITY PAYOUT OPTIONS
Variable Immediate Annuities are described in a separate prospectus that is
available from your financial professional. Before you select a Variable
Immediate Annuity payout option, you should read the prospectus which contains
important information that you should know.
Variable annuities may be funded through your choice of variable investment
options investing in portfolios of EQ Advisors Trust. The contract also offers
a fixed annuity option that can be elected in combination with the variable
annuity payout options. The amount of each variable annuity payment will
fluctuate, depending upon the performance of the variable investment options,
and whether the actual rate of investment return is higher or lower than an
assumed base rate.
We also make the variable annuity payout options available to owners of our
single premium deferred annuity ("SPDA") contract and certain other combination
fixed and variable annuity contracts. We may offer other payout options not
outlined here. Your financial professional can provide details.
SELECTING AN ANNUITY PAYOUT OPTION
When you select a payout option, we will issue you a separate written agreement
confirming your right to receive annuity payments. We require you to return
your contract before annuity payments begin. Unless you choose a different
payout option, we will pay annuity payments under a life annuity with a period
certain of 10 years. You choose whether these payments will be fixed or
variable. The contract owner and annuitant must meet the issue age and payment
requirements.
You can choose the date annuity payments are to begin. You can change the date
your annuity payments are to begin anytime before that date as long as you do
not choose a date later than the 28th day of any month. Also, that date may not
be later than:
(i) if the annuitant was not older than age 83 when the contract was issued,
the contract date anniversary that follows the annuitant's 90th birthday;
(ii) if the annuitant was age 84 but not older than age 88 when the contract
was issued the annuitant's age at issue plus seven years;
(iii) if the annuitant was age 89 or 90 when the contract was issued, age
95; and
(iv) for contracts issued in New York, the annuitant's 90th birthday.
The above may be different in some states.
Before the last date by which your annuity payments must begin, we will notify
you by letter. Once you have selected an annuity payout option and payments
have begun, no change can be made other than transfers (if permitted in the
future) among the variable investment options if a variable annuity is
selected.
The amount of the annuity payments will depend on:
(1) the amount applied to purchase the annuity;
(2) the type of annuity chosen, and whether it is fixed or variable. If you
choose a variable annuity, we use an assumed base rate of 5% to calculate
the level of payments. However, in states where that rate is not permitted
the assumed base rate will be 3-1/2%. We provide information about the
assumed base rate in the SAI;
(3) in the case of a life annuity, the annuitant's age (or the annuitant's and
joint annuitant's ages); and
(4) in certain instances, the sex of the annuitant(s).
In no event will you ever receive payments under a fixed option or an initial
payment under a variable option of less than the minimum amounts guaranteed by
the contract.
If, at the time you elect a payout option, the amount to be applied is less
than $2,000 or the initial payment under the form elected is less than $20
monthly, we reserve the right to pay the account value in a single sum rather
than as payments under the payout option chosen.
32 Accessing your money
5. Charges and expenses
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CHARGES THAT EQUITABLE LIFE DEDUCTS
We deduct the following charges each day from the net assets of each variable
investment option. These charges are reflected in the unit values of each
variable investment option:
o A mortality and expense risks charge
o A charge for other expenses
We deduct the following charges from your account value. When we deduct these
charges from your variable investment options, we reduce the number of units
credited to your contract:
o On the last day of the contract year -- an annual administrative charge, if
applicable
o Charge for third-party transfer or exchange
o At the time you make certain withdrawals or surrender your contract, or your
contract is terminated -- a withdrawal charge
o A ratcheted death benefit charge, if you elect the benefit
o At the time annuity payments are to begin -- charges designed to approximate
certain taxes that may be imposed on us, such as premium taxes in your
state. An annuity administrative fee may also apply.
More information about these charges appears below.
We will not increase these charges for the life of your contract, except as
noted. We may reduce certain charges under group or sponsored arrangements. See
"Group or sponsored arrangements" below.
To help with your retirement planning, we may offer other annuities with
different charges, benefits and features. Please contact your financial
professional for more information.
CHARGES UNDER THE CONTRACTS
MORTALITY AND EXPENSE RISKS CHARGE
We deduct a daily charge from the net assets in each variable investment option
to compensate us for mortality and expense risks, including the death benefit.
The daily charge is equivalent to an annual rate of 0.95% of the net assets in
each variable investment option.
The mortality risk we assume is that annuitants (as a group) will live for a
longer time than our actuarial tables predict. If that happens, we would be
paying more in annuity benefits than we planned. We also assume a risk that the
mortality assumptions reflected in our guaranteed annuity payment tables, shown
in each contract, will differ from actual mortality experience. We may change
the actuarial basis for our guaranteed annuity payment tables, but only for new
contributions and only at five year intervals from the contract date. Lastly,
we assume a mortality risk to the extent that at the time of death, the
guaranteed death benefit exceeds the cash value of the contract. The expense
risk we assume is that it will cost us more to issue and administer contracts
than we expect.
To the extent that the mortality and expense risk charges are not needed to
cover the actual expenses incurred, they may be considered an indirect
reimbursement for certain sales and promotional expenses relating to the
contracts.
CHARGE FOR OTHER EXPENSES
We deduct this daily charge from the net assets in each variable investment
option. This charge, together with the annual administrative charge described
below, is for providing administrative and financial accounting services under
the contracts. The daily charge is equivalent to an annual rate of 0.25% of net
assets in each variable investment option.
TOTAL MAXIMUM SEPARATE ACCOUNT A CHARGES
The total annual rate for Separate Account A charges is 1.20%. We may increase
or decrease this total annual rate, but we may not increase it above a maximum
rate of 2.00%. Any increase will apply only after the date of the change. Any
changes we make will reflect differences in costs and anticipated expenses, and
will not be unfair or discriminatory.
ANNUAL ADMINISTRATIVE CHARGE
We deduct an administrative charge from your account value on the last day of
each contract year. We will deduct a pro rata portion of the charge if you
surrender your contract, elect an annuity payout option, or the annuitant dies
during the contract year. We deduct the charge if your account value on the
last business day of the contract year, is less than $25,000 under NQ contracts
and $20,000 under IRA and contracts. If your account value on such date is
$25,000 or more for NQ ($20,000 or more for IRA) contracts, we do not deduct
the charge. During the first two contract years, the charge is equal to $30 or,
if less, 2% of your current account value. The charge is $30 for contract years
three or later.
The charge is deducted pro rata from the variable investment options and the
guaranteed interest option. If those amounts are insufficient, we will make up
the required amounts from the fixed maturity options to the extent you have
value in those options. Charges deducted from the fixed maturity options are
considered withdrawals and, as such, will result in a market value adjustment.
We currently waive the annual administrative charge that would otherwise be
deducted in the next contract year under any individually owned EQUI-VEST(R)
contract/certificate having an account value that, when combined with the
account value of other EQUI-VEST(R) contracts/certificates owned by the same
person, exceeds $100,000 in the aggregate (as determined in February of each
year). This does not apply to EQUI-VEST(R) contracts/certificates owned by
different members of the same household. We may change or discontinue this
practice at any time without prior notice.
Charges and expenses 33
We may increase this charge if our administrative costs rise, but the charge
will never exceed $65 annually. We reserve the right to deduct this charge on a
quarterly, rather than annual, basis.
CHARGE FOR THIRD-PARTY TRANSFER OR EXCHANGE
We impose a charge for making a direct transfer of amounts from your contract
to a third party, such as in the case of a trustee-to-trustee transfer for an
IRA contract, or if you request that your contract be exchanged for a contract
issued by another insurance company. In either case, we will deduct from your
account value any withdrawal charge that applies and a charge of $25 for each
direct transfer or exchange. We reserve the right to increase this charge to a
maximum of $65.
WITHDRAWAL CHARGE
A withdrawal charge may apply in three circumstances: (1) you make one or more
withdrawals during a contract year; (2) you surrender your contract to receive
its cash value; or (3) we terminate your contract. The amount of the charge
will depend on whether the free withdrawal amount applies, and the availability
of one or more exceptions.
In order to give you the exact dollar amount of the withdrawal you request, we
deduct the amount of the withdrawal and the amount of the withdrawal charge
from your account value. Any amount deducted to pay withdrawal charges is also
subject to a withdrawal charge. We deduct the withdrawal amount and the
withdrawal charge pro rata from the variable investment options and the
guaranteed interest option. If those amounts are insufficient, we will make up
the required amounts from the fixed maturity options in order of the earliest
maturities date(s). If we deduct all or a portion of the withdrawal charge from
the fixed maturity options, a market value adjustment may apply. See "About our
fixed maturity options" in "More information" later in this Prospectus.
The amount of the withdrawal charge we deduct is equal to 6% of any
contribution withdrawn attributable to contributions made during the current
and five prior contract years measured from the date of the withdrawal. In the
case of surrenders, we will pay you the greater of (i) the account value after
any withdrawal charge has been imposed (cash value), or (ii) the free
withdrawal amount plus 94% of the remaining account value.
For purposes of calculating the withdrawal charge, amounts withdrawn up to the
free withdrawal amount are not considered a withdrawal of any contribution. We
also treat contributions that have been invested the longest as being withdrawn
first. We treat contributions as withdrawn before earnings for purposes of
calculating the withdrawal charge. However, the federal income tax rules treat
earnings under most NQ contracts as withdrawn first. See "Tax information"
later in this Prospectus. Please note that you may incur a withdrawal charge if
your contract was issued in New York and your annuitant was age 84 or 85 at
issue because you must accept distribution of your cash value beginning with
the contract anniversary following the annuitant's 90th birthday.
We reserve the right to change the amount of the withdrawal charge, but it will
not exceed 6% of the contributions withdrawn.
Any change would not be unfairly discriminatory. We may also reduce the
withdrawal charge in order to comply with any state law requirement. See
"Contracts issued in New York -- fixed maturity options" below.
The withdrawal charge does not apply in the circumstances described below.
ANNUITANT AGES 86 THROUGH 90 WHEN THE CONTRACT IS ISSUED. The withdrawal charge
does not apply under the contract if the annuitant is age 86 or older when the
contract is issued.
15% FREE WITHDRAWAL AMOUNT. Each contract year you can withdraw up to 15% of
your account value without paying a withdrawal charge. The 15% free withdrawal
amount is determined using your account value at the time you request a
withdrawal, minus any other withdrawals made during the contract year.
DEATH OR PURCHASE OF ANNUITY. The withdrawal charge does not apply if:
o the annuitant dies and a death benefit is payable to the beneficiary.
o we receive a properly completed election form providing for the account value
to be used to buy a life contingent annuity or a non-life annuity with a
period certain for a term of at least ten years.
DISABILITY, TERMINAL ILLNESS, OR CONFINEMENT TO NURSING HOME. The withdrawal
charge also does not apply if:
(i) The annuitant has qualified to receive Social Security disability
benefits as certified by the Social Security Administration; or
(ii) We receive proof satisfactory to us (including certification by a
licensed physician) that the annuitant's life expectancy is six months or
less; or
(iii) The annuitant has been confined to a nursing home for more than 90
days (or such other period, as required in your state) as verified by a
licensed physician. A nursing home for this purpose means one that is (a)
approved by Medicare as a provider of skilled nursing care service, or (b)
licensed as a skilled nursing home by the state or territory in which it
is located (it must be within the United States, Puerto Rico, U.S. Virgin
Islands, or Guam) and meets all of the following:
-- its main function is to provide skilled, intermediate, or custodial
nursing care;
-- it provides continuous room and board to three or more persons;
-- it is supervised by a registered nurse or licensed practical nurse;
-- it keeps daily medical records of each patient;
-- it controls and records all medications dispensed; and
-- its primary service is other than to provide housing for residents.
We reserve the right to impose a withdrawal charge, in accordance with your
contract and applicable state law, with respect to a contribution if the
condition as described in (i), (ii) or (iii) above existed at the time the
contribution was remitted, or if the condition began within the 12 month period
following remittance. Some states may not permit us to waive the withdrawal
charge in the above circumstances,
34 Charges and expenses
or may limit the circumstances for which the withdrawal charge may be waived.
Your financial professional can provide more information or you may contact our
processing office.
For traditional IRA and Roth IRA contracts, the withdrawal charge also does not
apply:
o after six contract years and the annuitant is at least age 59-1/2; or
o if you request a refund of a contribution in excess of amounts allowed to be
contributed under the federal income tax rules within one month of the
date on which you made the contribution.
CONTRACTS ISSUED IN NEW YORK -- FIXED MATURITY OPTIONS
For contracts issued in New York, the withdrawal charge that applies to
withdrawals taken from amounts in the fixed maturity options will never exceed
6% and will be determined by applying the New York Declining Scale ("declining
scale"). If you withdraw amounts that have been transferred from one fixed
maturity option to another, we use the New York Alternative Scale ("alternative
scale") if it produces a higher charge than the declining scale.
- --------------------------------------------------------------------------------
DECLINING SCALE ALTERNATIVE SCALE
- --------------------------------------------------------------------------------
Year of investment Year of transfer within fixed
in fixed maturity maturity
option* option*
- --------------------------------------------------------------------------------
Within year 1 6% Within year 1 5%
- --------------------------------------------------------------------------------
2 6% 2 4%
- --------------------------------------------------------------------------------
3 5% 3 3%
- --------------------------------------------------------------------------------
4 4% 4 2%
- --------------------------------------------------------------------------------
5 3% 5 1%
- --------------------------------------------------------------------------------
6 2% After year 5 0%
- --------------------------------------------------------------------------------
After year 6 0% Not to exceed 1% times
the number of years
remaining in the fixed
maturity option, rounded
to the higher number of
years. In other words, if
4.3 years remain, it would
be a 5% charge.
- --------------------------------------------------------------------------------
* Measured from the contract date anniversary prior to the date of the
contribution or transfer.
In the following example we compare the withdrawal charge that would apply to a
withdrawal from a NQ or Traditional IRA contract that has an account value of
$10,000; $8,000 from a contribution made three years ago and $2,000 from
positive investment performance.
o If you were to withdraw the total amount of the contribution within the first
six years after it was made the withdrawal charge that generally applies
would be $480 (6% of $8,000). However, if when you made your contribution
you allocated it to a fixed maturity option, the withdrawal charge would
be lower. According to the declining scale method described above, the
withdrawal charge would be limited to 5% of the $8,000, or $400 in the
third year.
o The withdrawal charge may be different if when you made your contribution
three years ago, you allocated it to a fixed maturity option and then in
the third year, you transfer the amounts that apply to such contribution
to a new fixed maturity option. In this example we assume that there is
one year remaining in the new fixed maturity option. Because you made a
transfer among the fixed maturity options, the alternative scale may now
apply. Based on this alternative scale, a contribution that is transferred
will be subject to a 5% withdrawal charge if you withdraw that
contribution in the same year that you make the transfer. However, the
withdrawal charge may not exceed 1% for each year remaining in the new
fixed maturity option. Since, in this example, the time remaining in the
new fixed maturity option is one year, the withdrawal charge under the
alternative scale would be limited to 1%. Because New York regulations
permit us to use the greater of the declining scale or the alternative
scale, the withdrawal charge would be 5%, or $400, based on the declining
scale.
o The withdrawal charge may not exceed the charge that would normally apply
under the contract. Use of a New York scale can only result in a lower
charge. If your contribution has been in the contract for more than six
years and therefore would not have a withdrawal charge associated with it,
no withdrawal charge would apply.
o If you take a withdrawal from an investment option other than the fixed
maturity options, the amount available for withdrawal without a withdrawal
charge is reduced. It will be reduced by the amount of the contribution in
the fixed maturity options to which no withdrawal charge applies.
o As of any date on which 50% or more of your account value is held in fixed
maturity options, the free withdrawal amount is zero.
For contracts issued in New York, you should consider that on the maturity date
of a fixed maturity option if we have not received your instructions for
allocation of your maturity value, we will transfer your maturity value to the
fixed maturity option scheduled to mature next. If we are not offering other
fixed maturity options, we will transfer your maturity value to the EQ/Alliance
Money Market option.
The potential for lower withdrawal charges for withdrawals from the fixed
maturity options and the potential for a lower free withdrawal amount than
those that would normally apply, should be taken into account when deciding
whether to allocate amounts to, or transfer amounts to or from, the fixed
maturity options.
CHARGES FOR STATE PREMIUM AND OTHER APPLICABLE TAXES
We deduct a charge designed to approximate certain taxes that may be imposed on
us, such as premium taxes in your state. Generally, we deduct the charge from
the amount applied to provide an annuity payout option. The current tax charge
that might be imposed varies by state and ranges from 0% to 3.5%. The rate is
1% in Puerto Rico.
VARIABLE IMMEDIATE ANNUITY PAYOUT OPTION ADMINISTRATIVE FEE
We deduct a fee of up to $350 from the amount to be applied to purchase a
Variable Immediate Annuity payout option.
OPTIONAL RATCHETED DEATH BENEFIT CHARGE
If you elect the optional ratcheted death benefit, we deduct a charge annually
from your account value on each contract date anniversary until the annuitant
is age 90. The charge is equal to 0.15% of your account value on the contract
date anniversary.
Charges and expenses 35
We will deduct this charge from your investment options pro rata from the
guaranteed interest option and the variable investment options. If you do not
have sufficient value in those options, we will deduct the required amounts
from the fixed maturity options in order of the earliest maturity date(s)
first. A market value adjustment may apply if we deduct the charge from the
fixed maturity options.
CHARGES THAT THE TRUSTS DEDUCT
The Trusts deduct charges for the following types of fees and expenses:
o Investment advisory fees ranging from 0.25% to 1.20%.
o 12b-1 fees of 0.25%.
o Operating expenses, such as trustees' fees, independent auditors' fees, legal
counsel fees, administrative service fees, custodian fees, and liability
insurance.
o Investment-related expenses, such as brokerage commissions.
These charges are reflected in the daily share price of each portfolio. Since
shares of each Trust are purchased at their net asset value, these fees and
expenses are, in effect, passed on to the variable investment options and are
reflected in their unit values. For more information about these charges,
please refer to the attached prospectus for each Trust.
GROUP OR SPONSORED ARRANGEMENTS
For certain group or sponsored arrangements, we may reduce the withdrawal
charge or the mortality and expense risks charge, or change the minimum
contribution requirements. We also may change the minimum death benefit or
offer variable investment options that invest in shares of either Trust that
are not subject to the 12b-1 fee. Group arrangements include those in which a
trustee or an employer, for example, purchases contracts covering a group of
individuals on a group basis. Group arrangements are not available for
Traditional IRA and Roth IRA contracts. Sponsored arrangements include those in
which an employer allows us to sell contracts to its employees or retirees on
an individual basis.
Our costs for sales, administration, and mortality generally vary with the size
and stability of the group or sponsoring organization, among other factors. We
take all these factors into account when reducing charges. To qualify for
reduced charges, a group or sponsored arrangement must meet certain
requirements, such as requirements for size and number of years in existence.
Group or sponsored arrangements that have been set up solely to buy contracts
or that have been in existence less than six months will not qualify for
reduced charges.
We also may establish different rates to maturity for the fixed maturity
options under different classes of contracts for group or sponsored
arrangements.
We will make these and any similar reductions according to our rules in effect
when we approve a contract for issue. We may change these rules from time to
time. Any variation will reflect differences in costs or services and will not
be unfairly discriminatory.
Group or sponsored arrangements may be governed by federal income tax rules,
the Employee Retirement Income Security Act of 1974, or both. We make no
representations with regard to the impact of these and other applicable laws on
such programs. We recommend that employers, trustees, and others purchasing or
making contracts available for purchase under such programs seek the advice of
their own legal and benefits advisers.
OTHER DISTRIBUTION ARRANGEMENTS
We may reduce or eliminate charges when sales are made in a manner that results
in savings of sales and administrative expenses, such as sales through persons
who are compensated by clients for recommending investments and who receive no
commission or reduced commissions in connection with the sale of the contracts.
We will not permit a reduction or elimination of charges where it will be
unfairly discriminatory.
36 Charges and expenses
6. Payment of death benefit
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YOUR BENEFICIARY AND PAYMENT OF BENEFIT
You designate your beneficiary when you apply for your contract. You may change
your beneficiary at any time. The change will be effective on the date the
written request for the change is received in our processing office. We are not
responsible for any beneficiary change request that we do not receive. We will
send you a written confirmation when we receive your request. Under jointly
owned contracts, the surviving owner is considered the beneficiary, and will
take the place of any other beneficiary.
We determine the amount of the death benefit as of the date we receive
satisfactory proof of the annuitant's death, any required instructions for the
method of payment, information and forms necessary to effect payment. We
describe the death benefit in "Contract features and benefits" earlier in this
prospectus.
If you have transferred the value of another annuity contract that we issue to
your EQUI-VEST(R) contract, the value of the other contract's minimum death
benefit, calculated as of the time of the transfer, will be included in the
total contributions for the purpose of calculating the minimum death benefit.
EFFECT OF THE ANNUITANT'S DEATH
If the annuitant dies before the annuity payments begin, we will pay the death
benefit to your beneficiary.
Generally, the death of the annuitant terminates the contract. However, if you
are both the owner and the annuitant and your spouse is the sole primary
beneficiary or the joint owner, the contract can be continued as follows:
SUCCESSOR OWNER AND ANNUITANT. For all contracts, your spouse can elect upon
your death to continue the contract as the owner/annuitant and no death benefit
is payable until the surviving spouse's death.
If your surviving spouse decides to continue the contract, then as of the date
we receive satisfactory proof of death, any required instructions, information
and forms necessary to effect the successor owner and annuitant feature, we
will increase the account value to equal your ratcheted (or minimum) death
benefit, if such death benefit is greater than such account value. The increase
in the account value will be allocated to the investment options according to
the allocation percentages we have on file for your contract. Thereafter,
withdrawal charges will no longer apply to contributions made before your
death. Withdrawal charges will apply if additional contributions are made.
These additional contributions will be withdrawn only after all other amounts
have been withdrawn. In determining whether the ratcheted death benefit, if
elected, will continue to grow, and to determine if contributions are permitted
we will use your surviving spouse's age as of the date the successor owner and
annuitant feature is effected.
Also, for all types of IRA contracts, a beneficiary may be able to have limited
ownership as discussed under "Beneficiary continuation option" below.
WHEN AN NQ CONTRACT OWNER DIES BEFORE THE ANNUITANT
Under certain conditions the owner changes after the original owner's death for
purposes of receiving federal tax law required distributions from the contract.
When you are not the annuitant under an NQ contract and you die before annuity
payments begin, unless you specify otherwise, we will automatically make the
beneficiary you name to receive the death benefit upon the annuitant's death
your successor owner. If you do not want this beneficiary also to be the
successor owner, you should name a specific successor owner. You may name a
successor owner at any time by sending satisfactory notice to our processing
office. If the contract is jointly owned and the first owner to die is not the
annuitant, the surviving owner becomes the sole contract owner. This person
will be considered the successor owner for purposes of the distribution rules
described in this section.
Unless the surviving spouse of the owner who has died (or in the case of a
joint ownership situation, the surviving spouse of the first owner to die) is
the successor owner for this purpose, the entire interest in the contract must
be distributed under the following rules:
o The cash value of the contract must be fully paid to the successor owner (new
owner) within five years after your death (or in a joint ownership
situation, the death of the first owner to die).
o The successor owner may instead elect to receive the cash value as a life
annuity (or payments for a period certain of not longer than the new
owner's life expectancy). Payments must begin within one year after the
non-annuitant owner's death. Unless this alternative is elected, we will
pay any cash value five years after your death (or the death of the first
owner to die).
If the surviving spouse is the successor owner, the spouse may elect to
continue the contract. No distributions are required as long as the surviving
spouse and annuitant are living.
HOW DEATH BENEFIT PAYMENT IS MADE
We will pay the death benefit to the beneficiary in the form of the annuity
payout option you have chosen. If you have not chosen an annuity payout option
as of the time of the annuitant's death, the beneficiary will receive the death
benefit in a single sum. However, subject to any exceptions in the contract,
our rules and any applicable requirements under federal income tax rules, the
beneficiary may elect to apply the death benefit to one or more annuity payout
options we offer at the time. See "Your annuity payout options" in "Accessing
your money" earlier in this Prospectus. Please note that any annuity payout
option chosen may not extend beyond the life expectancy of the beneficiary.
Single sum payments generally are paid through the Equitable Life Access
Account(TM), an interest bearing account with check writing privileges. The
Equitable Life Access Account(TM) is part of Equitable Life's general account.
Beneficiaries have immediate access to the
Payment of death benefit 37
proceeds by writing a check on the account. We pay interest from the date the
single sum is deposited into the Access Account(TM) until the account is
closed.
BENEFICIARY CONTINUATION OPTION
This feature permits a beneficiary, upon your death, to maintain the contract
in your name and receive distributions under the contract instead of receiving
the death benefit in a single sum. We make this option available to
beneficiaries under traditional IRA and Roth IRA contracts. This feature is
only available if the beneficiary is an individual. Certain trusts with only
individual beneficiaries will be treated as individuals.
The minimum amount that is required in order to elect the beneficiary
continuation option is $5,000 for each beneficiary. This feature must be
elected within 9 months following the date we receive proof of your death and
before any other inconsistent election is made, however, in no event will we
accept a beneficiary continuation option election if such election is received
after December 15th of the calendar year following your death. Beneficiaries
who do not make a timely election will not be eligible for the beneficiary
continuation option. If the election is made, then as of the date we receive
satisfactory proof of death, any required instructions, information and forms
necessary to effect the beneficiary continuation option feature, we will
increase the account value to equal the minimum death benefit (or the ratcheted
death benefit if applicable) if such death benefit is greater than such account
value.
Generally, payments will be made once a year to the beneficiary over the
beneficiary's life expectancy (determined in the calendar year after your
death, and determined on a term certain basis). These payments must begin no
later than December 31st of the calendar year after the year of your death.
However, if you die before your Required Beginning Date for Required Minimum
Distributions the beneficiary may choose the "5-year rule" instead of annual
payments over life expectancy. If the beneficiary chooses this, the beneficiary
may take withdrawals as desired, but the entire account value must be fully
withdrawn by December 31st of the 5th calendar year after your death.
Under the beneficiary continuation option:
o The contract continues in your name for the benefit of your beneficiary.
o The beneficiary may make transfers among the investment options but no
additional contributions will be permitted.
o If the ratcheted death benefit was elected under the contract, it will no
longer be in effect and all charges for this benefit will stop.
o The beneficiary may choose at any time to withdraw all or a portion of the
account value and no withdrawal charges will apply. Any partial withdrawal
must be at least $300.
o Your beneficiary will have the right to name a beneficiary to receive any
remaining interest in the contract.
o Upon the death of your beneficiary, the beneficiary he or she has named has
the option to either continue taking minimum distributions based on the
remaining life expectancy of the deceased beneficiary or to receive any
remaining interest in the contract in a lump sum. The option elected will
be processed when we receive satisfactory proof of death, any required
instructions for the method of payment and any required information and
forms necessary to effect payment.
38 Payment of death benefit
7. Tax information
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OVERVIEW
In this part of the prospectus, we discuss the current federal income tax rules
that generally apply to EQUI-VEST(R) contracts owned by United States
taxpayers. The tax rules can differ, depending on the type of contract, whether
NQ, traditional IRA or Roth IRA. Therefore, we discuss the tax aspects of each
type of contract separately.
Federal income tax rules include the United States laws in the Internal Revenue
Code, and Treasury Department Regulations and Internal Revenue Service ("IRS")
interpretations of the Internal Revenue Code. These tax rules may change. We
cannot predict whether, when, or how these rules could change. Any change could
affect contracts purchased before the change.
We cannot provide detailed information on all tax aspects of the contracts.
Moreover, the tax aspects that apply to a particular person's contract may vary
depending on the facts applicable to that person. We do not discuss state
income and other state taxes, federal income tax and withholding rules for
non-U.S. taxpayers, or federal gift and estate taxes. Transfers of the
contract, rights under the contract, or payments under the contract may be
subject to gift or estate taxes. You should not rely only on this document, but
should consult your tax adviser before your purchase.
President Bush signed the Economic Growth and Tax Relief Reconciliation Act of
2001 ("EGTRRA") on June 7, 2001. Many of the provisions of EGTRRA became
effective on January 1, 2002 and are phased in during the first decade of the
twenty-first century. In the absence of future legislation, all of the
amendments made by EGTRRA will no longer apply after December 31, 2010, and the
law in effect in 2001 will apply again. In general, EGTRRA liberalizes
contributions that can be made to all types of tax-favored retirement plans. In
addition to increasing amounts that can be contributed and permitting
individuals over age 50 to make additional contributions, EGTRRA also permits
rollover contributions to be made between different types of tax-favored
retirement plans. Please discuss with your tax advisor how EGTRRA affects your
personal financial situation.
BUYING A CONTRACT TO FUND A RETIREMENT ARRANGEMENT
Generally, there are two types of funding vehicles that are available for
Individual Retirement Arrangements ("IRAs"): an annuity contract such as this
one, or an IRA or other qualified account. How these arrangements work,
including special rules applicable to each, are described in the specific
sections for each type of arrangement, below. You should be aware that the
funding vehicle for a qualified arrangement does not provide any tax deferral
beyond that already provided by the Code for all permissible funding vehicles.
Before choosing an annuity contract, therefore, you should consider the
annuity's features and benefits, such as EQUI-VEST(R)'s choice of death
benefits, selection of variable investment options, provision of a guaranteed
interest option and choices of payout options, as well as the features and
benefits of other permissible funding vehicles and the relative costs of
annuities and other such arrangements. You should be aware that cost may vary
depending on the features and benefits made available and the charges and
expenses of the portfolios.
TRANSFERS AMONG INVESTMENT OPTIONS
You can make transfers among investment options inside the contract without
triggering taxable income.
TAXATION OF NONQUALIFIED ANNUITIES
CONTRIBUTIONS
You may not deduct the amount of your contributions to a nonqualified annuity
contract.
CONTRACT EARNINGS
Generally, you are not taxed on contract earnings until you receive a
distribution from your contract, whether as a withdrawal or as an annuity
payment. However, earnings are taxable, even without a distribution:
o if a contract fails investment diversification requirements as specified in
federal income tax rules (these rules are based on or are similar to those
specified for mutual funds under securities laws);
o if you transfer a contract, for example, as a gift to someone other than your
spouse (or former spouse);
o if you use a contract as security for a loan (in this case, the amount
pledged will be treated as a distribution); and
o if the owner is other than an individual (such as a corporation, partnership,
trust, or other non-natural person).
All nonqualified deferred annuity contracts that Equitable Life and its
affiliates issue to you during the same calendar year are linked together and
treated as one contract for calculating the taxable amount of any distribution
from any of those contracts.
ANNUITY PAYMENTS
Once annuity payments begin, a portion of each payment is taxable as ordinary
income. You get back the remaining portion without paying taxes on it. This is
your "investment in the contract." Generally, your investment in the contract
equals the contributions you made, less any amounts you previously withdrew
that were not taxable.
For fixed annuity payments, the tax-free portion of each payment is determined
by (1) dividing your investment in the contract by the total amount you are
expected to receive out of the contract, and (2) multiplying the result by the
amount of the payment. For variable annuity payments, your tax-free portion of
each payment is your investment in the contract divided by the number of
expected payments.
Tax information 39
Once you have received the amount of your investment in the contract, all
payments after that are fully taxable. If payments under a life annuity stop
because the annuitant dies, there is an income tax deduction for any
unrecovered investment in the contract.
PAYMENTS MADE BEFORE ANNUITY PAYMENTS BEGIN
If you make withdrawals before annuity payments begin under your contract, they
are taxable to you as ordinary income if there are earnings in the contract.
Generally, earnings are your account value less your investment in the
contract. If you withdraw an amount which is more than the earnings in the
contract as of the date of the withdrawal, the balance of the distribution is
treated as a return of your investment in the contract and is not taxable.
CONTRACTS PURCHASED THROUGH EXCHANGES
You may purchase your NQ contract through an exchange of another contract.
Normally, exchanges of contracts are taxable events. The exchange will not be
taxable under Section 1035 of the Internal Revenue Code if:
o The contract that is the source of the funds you are using to purchase the NQ
contract is another nonqualified deferred annuity contract (or life
insurance or endowment contract).
o The owner and the annuitant are the same under the source contract and the
EQUI-VEST(R) NQ contract. If you are using a life insurance or endowment
contract the owner and the insured must be the same on both sides of the
exchange transaction.
The tax basis, also referred to as your investment in the contract, of the
source contract carries over to the EQUI-VEST(R) NQ contract.
A recent case permitted an owner to direct the proceeds of a partial withdrawal
from one nonqualified deferred annuity contract to a different insurer to
purchase a new nonqualified deferred annuity contract on a tax-deferred basis.
Special forms, agreement between the carriers, and provision of cost basis
information may be required to process this type of an exchange.
SURRENDERS
If you surrender or cancel the contract, the distribution is taxable as
ordinary income (not capital gain) to the extent it exceeds your investment in
the contract.
DEATH BENEFIT PAYMENTS MADE TO A BENEFICIARY AFTER YOUR DEATH
For the rules applicable to death benefits, see "Payment of death benefit"
earlier in this Prospectus. The tax treatment of a death benefit taken as a
single sum is generally the same as the tax treatment of a withdrawal from or
surrender of your contract. The tax treatment of a death benefit taken as
annuity payments is generally the same as the tax treatment of annuity payments
under your contract.
EARLY DISTRIBUTION PENALTY TAX
If you take distributions before you are age 59-1/2 a penalty tax of 10% of the
taxable portion of your distribution applies in addition to the income tax.
Some of the available exceptions to the pre-age 59-1/2 penalty tax include
distributions made:
o on or after your death; or
o because you are disabled (special federal income tax definition); or
o in the form of substantially equal periodic annuity payments for your life
(or life expectancy) or the joint lives (or joint life expectancy) of you
and a beneficiary.
OTHER INFORMATION
The IRS has stated that you will be considered the owner of the assets in the
separate account if you possess incidents of ownership in those assets, such as
the ability to exercise investment control over the assets. The Treasury
Department has the authority to issue guidelines prescribing the circumstances
in which your ability to direct your investment to a particular portfolio
within a separate account may cause you, rather than the insurance company, to
be treated as the owner of the portfolio shares attributable to your
nonqualified annuity contract. If you were to be considered the owner of the
underlying shares, income and gains attributable to such portfolio shares would
be currently included in your gross income for federal income tax purposes.
Incidents of investment control could include among other items, the number of
investment options available under a contract and/or the frequency of transfers
available under the contract. In connection with the issuance of regulations
concerning investment diversification in 1986, the Treasury Department
announced that the diversification regulations did not provide guidance on
investor control but that guidance would be issued in the form of regulations
or rulings. As of the date of this prospectus, no such guidance has been
issued. It is not known whether such guidelines, if in fact issued, would have
retroactive adverse effect on existing contracts. We cannot provide assurance
as to the terms or scope of any future guidance nor any assurance that such
guidance would not be imposed on a retroactive basis to contracts issued under
this prospectus. We reserve the right to modify the contract if necessary to
attempt to prevent you from being considered the owner of the assets of
Separate Account A for tax purposes.
SPECIAL RULES FOR NQ CONTRACTS ISSUED IN PUERTO RICO
Under current law we treat income from NQ contracts as U.S. source. A Puerto
Rico resident is subject to U.S. taxation on such U.S. source income. Only
Puerto Rico source income of Puerto Rico residents is excludable from U.S.
taxation. Income from NQ contracts is also subject to Puerto Rico tax. The
calculation of the taxable portion of amounts distributed from a contract may
differ in the two jurisdictions. Therefore, you might have to file both U.S.
and Puerto Rico tax returns, showing different amounts of income from the
contract for each tax return. Puerto Rico generally provides a credit against
Puerto Rico tax for U.S. tax paid. Depending on your personal situation and the
timing of the different tax liabilities, you may not be able to take full
advantage of this credit.
INDIVIDUAL RETIREMENT ARRANGEMENTS ("IRAS")
GENERAL
"IRA" stands for individual retirement arrangement. There are two basic types
of such arrangements, individual retirement accounts and
40 Tax information
individual retirement annuities. In an individual retirement account, a trustee
or custodian holds the assets funding the account for the benefit of the IRA
owner. The assets typically include mutual funds and/ or individual stocks and
securities in a custodial account, and bank certificates of deposit in a
trusteed account. In an individual retirement annuity, an insurance company
issues an annuity contract that serves as the IRA.
There are two basic types of IRAs, as follows:
o "Traditional IRAs," typically funded on a pre-tax basis including SEP-IRAs
and SIMPLE-IRAs, issued and funded in connection with employer-sponsored
retirement plans.
o Roth IRAs, first available in 1998, funded on an after-tax basis.
EQUI-VEST(R) Roth IRA is a Roth IRA.
Regardless of the type of IRA, your ownership interest in the IRA cannot be
forfeited. You or your beneficiaries who survive you are the only ones who can
receive the IRA's benefits or payments. All types of IRAs qualify for tax
deferral, regardless of the funding vehicle selected.
You can hold your IRA assets in as many different accounts and annuities as you
would like, as long as you meet the rules for setting up and making
contributions to IRAs. However, if you own multiple IRAs, you may be required
to combine IRA values or contributions for tax purposes. For further
information about individual retirement arrangements, you can read Internal
Revenue Service Publication 590 ("Individual Retirement Arrangements (IRAs)").
This publication is usually updated annually, and can be obtained from any IRS
district office or the IRS Web site (www.irs.gov).
Equitable Life designs its traditional IRA contracts to qualify as "individual
retirement annuities" under Section 408(b) of the Internal Revenue Code. This
prospectus contains the information that the IRS requires you to have before
you purchase an IRA. This section of the prospectus covers some of the special
tax rules that apply to IRAs. The next section covers Roth IRAs. Education IRAs
are not discussed in this prospectus because they are not available in
individual retirement annuity form.
The EQUI-VEST(R) traditional and Roth IRA contracts have been approved by the
IRS as to form for use as a traditional IRA and a Roth IRA, respectively. This
IRS approval is a determination only as to the form of the annuity. It does not
represent a determination of the merits of the annuity as an investment. The
IRS approval does not address every feature possibly available under the
EQUI-VEST(R) traditional and Roth IRA contracts. Because the IRS has announced
that issuers of formally approved IRAs must amend their contracts to reflect
recent tax law changes and resubmit the amended contracts to retain such formal
approval, Equitable intends to comply with such requirement during 2002.
CANCELLATION
You can cancel any version of the EQUI-VEST(R) IRA contract (Traditional IRA or
Roth IRA) by following the directions under "Your right to cancel within a
certain number of days" under "Contract features and benefits" earlier in this
Prospectus. You can cancel an EQUI-VEST(R) Roth IRA contract issued as a result
of a full or partial conversion of any EQUI-VEST(R) traditional IRA contract by
following the instructions in the "EQUI-VEST(R) Roth IRA Re-Characterization
Form." The form is available from our processing office or your financial
professional. If you cancel a Traditional IRA or Roth IRA contract, we may have
to withhold tax, and we must report the transaction to the IRS. A contract
cancellation could have an unfavorable tax impact.
TRADITIONAL INDIVIDUAL RETIREMENT ANNUITIES (TRADITIONAL IRAS)
CONTRIBUTIONS TO TRADITIONAL IRAS. Individuals may make three different types
of contributions to a traditional IRA:
o regular contributions out of earned income or compensation; or
o tax-free "rollover" contributions; or
o direct custodian-to-custodian transfers from other traditional IRAs ("direct
transfers").
REGULAR CONTRIBUTIONS TO TRADITIONAL IRAS.
LIMITS ON CONTRIBUTIONS. Generally, $3,000 is the maximum amount that you may
contribute to all IRAs (including Roth IRAs) for 2002. When your earnings are
below $3,000, your earned income or compensation for the year is the most you
can contribute. This limit does not apply to rollover contributions or direct
custodian-to-custodian transfers into a traditional IRA. You cannot make
regular traditional IRA contributions for the tax year in which you reach age
70-1/2 or any tax year after that.
If you were born from July 1, 1931 to December 31, 1952, you may be eligible to
make an additional "catch up contribution" of up to $500 to your traditional
IRA for 2002.
SPECIAL RULES FOR SPOUSES. If you are married and file a joint income tax
return, you and your spouse may combine your compensation to determine the
amount of regular contributions you are permitted to make to traditional IRAs
(and Roth IRAs discussed below). Even if one spouse has no compensation under
$3,000, married individuals filing jointly can contribute up to $6,000 for 2002
to any combination of traditional IRAs and Roth IRAs. (Any contributions to
Roth IRAs reduce the ability to contribute to traditional IRAs and vice versa.)
The maximum amount may be less if earned income is less and the other spouse
has made IRA contributions. No more than a combined total of $3,000 can be
contributed annually to either spouse's traditional and Roth IRAs. Each spouse
owns his or her traditional IRAs and Roth IRAs even if the other spouse funded
the contributions. A working spouse age 70-1/2 or over can contribute up to the
lesser of $3,000 or 100% of "earned income" to a traditional IRA for a
nonworking spouse until the year in which the nonworking spouse reaches age
70-1/2. Catch-up contributions may be made as described above for spouses who
are at least age 50 but under age 70-1/2 at any time during calendar year 2002.
DEDUCTIBILITY OF CONTRIBUTIONS. The amount of traditional IRA contributions
that you can deduct for a tax year depends on whether you are covered by an
employer-sponsored-tax-favored retirement plan, as defined under special
federal income tax rules. Your Form W-2 will indicate whether or not you are
covered by such a retirement plan.
IF YOU ARE NOT COVERED BY A RETIREMENT PLAN DURING ANY PART OF THE YEAR, you
can make fully deductible contributions to your traditional IRAs for 2002 up to
$3,000 or, if less, your earned income.
Tax information 41
IF YOU ARE COVERED BY A RETIREMENT PLAN DURING ANY PART OF THE YEAR, and your
adjusted gross income (AGI) is BELOW THE LOWER DOLLAR FIGURE IN A PHASE-OUT
RANGE, you can make fully deductible contributions to your traditional IRAs.
For each tax year, your fully deductible contribution can be up to $3,000 for
2002, or if less, your earned income. (The dollar limit is $3,500 for people
eligible to make age 50-70-1/2 catch-up contributions.)
IF YOU ARE COVERED BY A RETIREMENT PLAN DURING ANY PART OF THE YEAR, and your
AGI falls within a PHASE-OUT range, you can make PARTIALLY DEDUCTIBLE
CONTRIBUTIONS to your traditional IRAs.
IF YOU ARE COVERED BY A RETIREMENT PLAN DURING ANY PART OF THE YEAR, and your
AGI falls ABOVE THE HIGHER FIGURE IN THE PHASE-OUT RANGE, you may not deduct
any of your regular contributions to your traditional IRAs.
If you are single and covered by a retirement plan during any part of the
taxable year, the deduction for traditional IRA contributions phases out with
the AGI between $34,000 and $44,000 in 2002. This range will increase every
year until 2005 when the range is $50,000-$60,000.
If you are married and file a joint return, and you are covered by a retirement
plan during any part of the taxable year, the deduction for traditional IRA
contributions phases out with AGI between $54,000 and $64,000 in 2002. This
range will increase every year until 2007 when the range is $80,000-$100,000.
Married individuals filing separately and living apart at all times are not
considered married for purposes of this deductible contribution calculation.
Generally, the active participation in an employer-sponsored retirement plan of
an individual is determined independently for each spouse. Where spouses have
"married filing jointly" status, however, the maximum deductible traditional
IRA contribution for an individual who is not an active participant (but whose
spouse is an active participant) is phased out for taxpayers with AGI of
between $150,000 and $160,000.
To determine the deductible amount of the contribution for 2002, you determine
AGI and subtract $34,000 if you are single, or $54,000 if you are married and
file a joint return with your spouse. The resulting amount is your excess AGI.
You then determine the limit on the deduction for traditional IRA contributions
using the following formula:
($10,000-excess AGI) times $3,000 (or earned Equals the adjusted
- --------------------- x income, if less, = deductible
divided by $10,000 or $3,500, contribution
if applicable) limit
ADDITIONAL "SAVER'S CREDIT" FOR CONTRIBUTIONS TO A TRADITIONAL IRA OR ROTH IRA
Beginning in 2002, you may be eligible for a nonrefundable income tax credit
for contributions you make to a traditional IRA or Roth IRA. If you qualify,
you may take this credit even though your traditional IRA contribution is
already fully or partially deductible. To take advantage of this "saver's
credit" you must be age 18 or over before the end of 2002, you cannot be a
full-time student or claimed as a dependent on another's tax return, and your
adjusted gross income cannot exceed $50,000. The amount of the tax credit you
can get varies from 10% of your contribution to 50% of your contribution, and
depends on your income tax filing status and your adjusted gross income. The
maximum annual contribution eligible for the saver's credit is $2,000. If you
and your spouse file a joint return, and each of you qualifies, each is
eligible for a maximum annual contribution of $2,000. Your saver's credit may
also be reduced if you take or have taken a taxable distribution from any plan
eligible for a saver's credit contribution -- even if you make a contribution
to one plan and take the distribution from another plan -- during the "testing
period." The "testing period" begins two years before the year for which you
make the contribution and ends when your tax return is due for the year for
which you make the contribution. Saver's-credit-eligible contributions may be
made to a 401(k) plan, 403(b) TSA, governmental 457(b) plan, SIMPLE IRA, or
SARSEP IRA, as well as a traditional IRA or Roth IRA.
NONDEDUCTIBLE REGULAR CONTRIBUTIONS. If you are not eligible to deduct part or
all of the traditional IRA contribution, you may still make nondeductible
contributions on which earnings will accumulate on a tax-deferred basis. The
combined deductible and nondeductible contributions to your traditional IRA (or
the nonworking spouse's traditional IRA) may not, however, exceed the maximum
$3,000 per person limit for 2002. For 2002, the dollar limit is $3,500 for
people eligible to make age 50-70-1/2 catch-up contributions. See "Excess
contributions" below. You must keep your own records of deductible and
nondeductible contributions in order to prevent double taxation on the
distribution of previously taxed amounts. See "Withdrawals, payments and
transfers of funds out of traditional IRAs" below.
If you are making nondeductible contributions in any taxable year, or you have
made nondeductible contributions to a traditional IRA in prior years and are
receiving distributions from any traditional IRA, you must file the required
information with the IRS. Moreover, if you are making nondeductible traditional
IRA contributions, you must retain all income tax returns and records
pertaining to such contributions until interests in all traditional IRAs are
fully distributed.
WHEN YOU CAN MAKE REGULAR CONTRIBUTIONS. If you file your tax returns on a
calendar year basis like most taxpayers, you have until the April 15 return
filing deadline (without extensions) of the following calendar year to make
your regular traditional IRA contributions for a tax year.
ROLLOVER AND TRANSFER CONTRIBUTIONS TO TRADITIONAL IRAS
Rollover contributions may be made to a traditional IRA from these "eligible
retirement plans":
o qualified plans;
o governmental 457(b) plans (beginning in 2002);
o TSAs (including Internal Revenue Code Section 403(b)(7) custodial accounts);
and
o other traditional IRAs.
Direct transfer contributions may only be made directly from one traditional
IRA to another.
42 Tax information
Any amount contributed to a traditional IRA after you reach age 70-1/2 must be
net of your required minimum distribution for the year in which the rollover or
direct transfer contribution is made.
ROLLOVERS FROM "ELIGIBLE RETIREMENT PLANS" OTHER THAN TRADITIONAL IRAS
There are two ways to do rollovers:
o Do it yourself
You actually receive a distribution that can be rolled over and you roll it
over to a traditional IRA within 60 days after the date you receive the
funds. The distribution from your eligible retirement plan will be net of
20% mandatory federal income tax withholding. If you want, you can replace
the withheld funds yourself and roll over the full amount.
o Direct rollover
You tell the trustee or custodian of the eligible retirement plan to send
the distribution directly to your traditional IRA issuer. Direct rollovers
are not subject to mandatory federal income tax withholding.
All distributions from a TSA, qualified plan or governmental 457(b) plan are
eligible rollover distributions, unless the distribution is:
o "required minimum distributions" after age 70-1/2 or retirement; or
o substantially equal periodic payments made at least annually for your life
(or life expectancy) or the joint lives (or joint life expectancies) of
you and your designated beneficiary; or
o substantially equal periodic payments made for a specified period of 10 years
or more; or
o a hardship withdrawal; or
o corrective distributions that fit specified technical tax rules; or
o loans that are treated as distributions; or
o a death benefit payment to a beneficiary who is not your surviving spouse; or
o a qualified domestic relations order distribution to a beneficiary who is not
your current spouse or former spouse.
You should discuss with your tax advisor whether you should consider rolling
over funds from one type of tax qualified retirement plan to another, because
the funds will generally be subject to the rules of the recipient plan. For
example, funds in a governmental 457(b) plan are not subject to the additional
10% federal income tax penalty for premature distributions, but they may become
subject to this penalty if you roll the funds to a non-governmental 457(b) plan
and subsequently take a premature distribution.
ROLLOVERS OF AFTER-TAX CONTRIBUTIONS FROM ELIGIBLE RETIREMENT PLANS OTHER THAN
TRADITIONAL IRAS
Beginning in 2002, any after-tax contributions you have made to a qualified
plan or TSA (but not a governmental 457(b) plan) may be rolled over to a
traditional IRA (either in a direct rollover or a rollover you do yourself).
When the recipient plan is a traditional IRA, you are responsible for
recordkeeping and calculating the taxable amount of any distributions you take
from that traditional IRA. See "Taxation of payments" later in this Prospectus
under "Withdrawals, payments and transfers of funds out of traditional IRAs."
ROLLOVERS FROM TRADITIONAL IRAS TO TRADITIONAL IRAS
You may roll over amounts from one traditional IRA to one or more of your other
traditional IRAs if you complete the transaction within 60 days after you
receive the funds. You may make such a rollover only once in every 12-month
period for the same funds. Trustee-to-trustee or custodian-to-custodian direct
transfers are not rollover transactions. You can make these more frequently
than once in every 12-month period.
The surviving spouse beneficiary of a deceased individual can roll over or
directly transfer an inherited traditional IRA to one or more other traditional
IRAs. Also, in some cases, traditional IRAs can be transferred on a tax-free
basis between spouses or former spouses as a result of a court ordered divorce
or separation decree.
EXCESS CONTRIBUTIONS
Excess contributions to IRAs are subject to a 6% excise tax for the year in
which made and for each year after until withdrawn. The following are excess
contributions to IRAs:
o regular contributions of more than $3,000 for 2002 (or $3,500 if you are age
50-70-1/2); or
o regular contributions of more than earned income for the year, if that amount
is under $3,000 for 2002 (or $3,500 if you are age 50-70-1/2); or
o regular contributions to a traditional IRA made after you reach age 70-1/2; or
o rollover contributions of amounts which are not eligible to be rolled over,
for example, minimum distributions required to be made after age 70-1/2.
You can avoid the excise tax by withdrawing an excess contribution (rollover or
regular) before the due date (including extensions) for filing your federal
income tax return for the year. If it is an excess regular traditional IRA
contribution, you cannot take a tax deduction for the amount withdrawn. You do
not have to include the excess contribution withdrawn as part of your income.
It is also not subject to the 10% additional penalty tax on early
distributions, discussed below under "Early distribution penalty tax." You do
have to withdraw any earnings that are attributed to the excess contribution.
The withdrawn earnings would be included in your gross income and could be
subject to the 10% penalty tax.
Even after the due date for filing your return, you may withdraw an excess
rollover contribution, without income inclusion or 10% penalty, if:
(1) the rollover was from an eligible retirement plan to a traditional IRA;
Tax information 43
(2) the excess contribution was due to incorrect information that the plan
provided; and
(3) you took no tax deduction for the excess contribution.
RECHARACTERIZATIONS
Amounts that have been contributed as traditional IRA funds may subsequently be
treated as Roth IRA funds. Special federal income tax rules allow you to change
your mind again and have amounts that are subsequently treated as Roth IRA
funds, once again treated as traditional IRA funds. You do this by using the
forms we prescribe. This is referred to as having "recharacterized" your
contribution.
WITHDRAWALS, PAYMENTS AND TRANSFERS OF FUNDS OUT OF TRADITIONAL IRAS
NO FEDERAL INCOME TAX LAW RESTRICTIONS ON WITHDRAWALS. You can withdraw any or
all of your funds from a traditional IRA at any time. You do not need to wait
for a special event like retirement.
TAXATION OF PAYMENTS. Earnings in traditional IRAs are not subject to federal
income tax until you or your beneficiary receive them. Taxable payments or
distributions include withdrawals from your contract, surrender of your
contract, and annuity payments from your contract. Death benefits are also
taxable. Except as discussed below, the total amount of any distribution from a
traditional IRA must be included in your gross income as ordinary income.
If you have ever made nondeductible IRA contributions to any traditional IRA
(it does not have to be to this particular traditional IRA contract), those
contributions are recovered tax free when you get distributions from any
traditional IRA. You must keep permanent tax records of all of your
nondeductible contributions to traditional IRAs. At the end of any year in
which you have received a distribution from any traditional IRA, you calculate
the ratio of your total nondeductible traditional IRA contributions (less any
amounts previously withdrawn tax free) to the total account balances of all
traditional IRAs you own at the end of the year plus all traditional IRA
distributions made during the year. Multiply this by all distributions from the
traditional IRA during the year to determine the nontaxable portion of each
distribution.
In addition, a distribution is not taxable if:
o the amount received is a withdrawal of excess contributions, as described
under "Excess contributions" above; or
o the entire amount received is rolled over to another traditional IRA or other
eligible retirement plan which agrees to accept the funds. (See "Rollovers
from eligible retirement plans other than traditional IRAs" under
"Rollover and transfer contributions to traditional IRAs" above.)
Beginning in 2002, the following are eligible to receive rollovers of
distributions from a traditional IRA: a qualified plan, a TSA or a governmental
457 plan. After-tax contributions in a traditional IRA cannot be rolled from
your traditional IRA into, or back into, a qualified plan, TSA or governmental
457 plan. Before you decide to roll over a distribution from a traditional IRA
to another eligible retirement plan, you should check with the administrator of
that plan about whether the plan accepts rollovers and, if so, the types it
accepts. You should also check with the administrator of the receiving plan
about any documents required to be completed before it will accept a rollover.
Distributions from a traditional IRA are not eligible for favorable ten-year
averaging and long-term capital gain treatment available under limited
circumstances for distributions from qualified plans. If you might be eligible
for such tax treatment from your qualified plan, you may be able to preserve
such tax treatment even though an eligible rollover from a qualified plan is
temporarily rolled into a "conduit IRA" before being rolled back into a
qualified plan. See your tax advisor.
REQUIRED MINIMUM DISTRIBUTIONS
- --------------------------------------------------------------------------------
The IRS and Treasury have recently proposed revisions to the minimum
distribution rules. We expect these rules to be finalized in 2002. Since the
proposed revisions permit IRA owners and beneficiaries to apply the proposed
revisions to distributions for calendar year 2001, the discussion below
reflects the proposed revisions.
- --------------------------------------------------------------------------------
LIFETIME REQUIRED MINIMUM DISTRIBUTIONS. You must start taking annual
distributions from your traditional IRAs for the year in which you turn age
70-1/2.
WHEN YOU HAVE TO TAKE THE FIRST REQUIRED MINIMUM DISTRIBUTION.
The first required minimum distribution is for the calendar year in which you
turn age 70-1/2. You have the choice to take this first required minimum
distribution during the calendar year you actually reach age 70-1/2, or to delay
taking it until the first three-month period in the next calendar year (January
1 - April 1). Distributions must start no later than your "Required Beginning
Date," which is April 1st of the calendar year after the calendar year in which
you turn age 70-1/2. If you choose to delay taking the first annual minimum
distribution, then you will have to take two minimum distributions in that year
- -- the delayed one for the first year and the one actually for that year. Once
minimum distributions begin, they must be made at some time each year.
HOW YOU CAN CALCULATE REQUIRED MINIMUM DISTRIBUTIONS. There are two approaches
to taking required minimum distributions -- "account-based" or "annuity-based."
ACCOUNT-BASED METHOD. If you choose an account-based method, you divide the
value of your traditional IRA as of December 31st of the past calendar year by
a number corresponding to your age from an IRS table. This gives you the
required minimum distribution amount for that particular IRA for that year. If
your spouse is your sole beneficiary and more than 10 years younger than you,
the dividing number you use may be from another IRS table and may produce a
smaller lifetime required minimum distribution amount. Regardless of the table
used, the required minimum distribution amount will vary each year as the
account value and the divisor change. If you initially choose an account-based
method, you may later apply your traditional IRA funds to a life annuity-based
payout with any certain period not exceeding remaining life expectancy.
44 Tax information
ANNUITY-BASED METHOD. If you choose an annuity-based method, you do not have
to do annual calculations. You apply the account value to an annuity payout for
your life or the joint lives of you and a designated beneficiary, or for a
period certain not extending beyond applicable life expectancies.
DO YOU HAVE TO PICK THE SAME METHOD TO CALCULATE YOUR REQUIRED MINIMUM
DISTRIBUTIONS FOR ALL OF YOUR TRADITIONAL IRAS AND OTHER RETIREMENT PLANS? No.
If you want, you can choose a different method and a different beneficiary for
each of your traditional IRAs and other retirement plans. For example, you can
choose an annuity payout from one IRA, a different annuity payout from a
qualified plan, and an account-based annual withdrawal from another IRA.
WILL WE PAY YOU THE ANNUAL AMOUNT EVERY YEAR FROM YOUR TRADITIONAL IRA BASED ON
THE METHOD YOU CHOOSE? No, unless you affirmatively select an annuity payout
option or an account-based withdrawal option such as our minimum distribution
withdrawal option. Otherwise, you will be responsible for calculating and
requesting your required minimum distribution withdrawal.
WHAT IF YOU TAKE MORE THAN YOU NEED TO FOR ANY YEAR? The required minimum
distribution amount for your traditional IRAs is calculated on a year-by-year
basis. There are no carry-back or carry-forward provisions. Also, you cannot
apply required minimum distribution amounts you take from your qualified plans
to the amounts you have to take from your traditional IRAs and vice versa.
However, the IRS will let you calculate the required minimum distribution for
each traditional IRA that you maintain, using the method that you picked for
that particular IRA. You can add these required minimum distribution amount
calculations together. As long as the total amount you take out every year
satisfies your overall traditional IRA required minimum distribution amount,
you may choose to take your annual required minimum distribution from any one
or more traditional IRAs that you own.
WHAT IF YOU TAKE LESS THAN YOU NEED TO FOR ANY YEAR? Your IRA could be
disqualified, and you could have to pay tax on the entire value. Even if your
IRA is not disqualified, you could have to pay a 50% penalty tax on the
shortfall (required amount for traditional IRAs less amount actually taken). It
is your responsibility to meet the required minimum distribution rules. We will
remind you when our records show that your age 70-1/2 is approaching. If you do
not select a method with us, we will assume you are taking your required
minimum distribution from another traditional IRA that you own.
WHAT ARE THE REQUIRED MINIMUM DISTRIBUTION PAYMENTS AFTER YOU DIE? These could
vary on whether you die before or after your Required Beginning Date for
lifetime required minimum distribution payments, and the status of your
beneficiary.
INDIVIDUAL BENEFICIARY. Regardless of whether your death occurs before or after
your Required Beginning Date, under the revised proposed rules, an individual
death beneficiary calculates annual post-death required minimum distribution
payments based on the beneficiary's life expectancy using the "term certain
method." That is, he or she determines his or her life expectancy using the
life expectancy tables as of the calendar year after the owner's death and
reduces that number by one each subsequent year.
If you die before your Required Beginning Date, the revised proposed rules
permit any individual beneficiary, including a spousal beneficiary, to elect
instead to apply the "5-year rule." Under this rule, instead of annual payments
having to be made beginning with the first in the year following the owner's
death, the entire account must be distributed by the end of the fifth year
following the year of the owner's death. No distribution is required before
that fifth year.
SPOUSAL BENEFICIARY. If you die after your Required Beginning Date, and your
death beneficiary is your surviving spouse, your spouse has a number of
choices. The revised proposed rules permit post-death distributions to be made
over your spouse's single life expectancy. Any amounts distributed after that
surviving spouse's death are made over the spouse's life expectancy calculated
in the year of his/her death, reduced by one for each subsequent year. In some
circumstances, your surviving spouse may elect to become the owner of the
traditional IRA and halt distributions until he or she reaches age 70-1/2, or
roll over amounts from your traditional IRA into his/her own traditional IRA or
other eligible retirement plan.
If you die before your Required Beginning Date, and the death beneficiary is
your surviving spouse, the revised proposed rules permit the spouse to delay
starting payments over his/her life expectancy until the year in which you
would have attained age 70-1/2.
NON-INDIVIDUAL BENEFICIARY. If you die after your Required Beginning Date, and
your death beneficiary is a non-individual, such as the estate, the revised
proposed rules permit the beneficiary to calculate post-death required minimum
distribution amounts based on the owner's life expectancy in the year of death.
However, note that we need an individual annuitant to keep an annuity contract/
certificate in force. If the beneficiary is not an individual, we must
distribute amounts remaining in the annuity contract after the death of the
annuitant.
If you die before your Required Beginning Date for lifetime required minimum
distribution payments, and the death beneficiary is a non-individual, such as
the estate, the revised proposed rules continue to apply the 5-year rule
discussed above under "Individual beneficiary." Please note that we need an
individual annuitant to keep an annuity contract/certificate in force. If the
beneficiary is not an individual, we must distribute amounts remaining in the
annuity contract after the death of the annuitant.
SUCCESSOR ANNUITANT AND OWNER
If your spouse is the sole primary beneficiary and elects to become the
successor annuitant and owner, no death benefit is payable until your surviving
spouse's death.
PAYMENTS TO A BENEFICIARY AFTER YOUR DEATH
IRA death benefits are taxed the same as IRA distributions.
Tax information 45
BORROWING AND LOANS ARE PROHIBITED TRANSACTIONS
You cannot get loans from a traditional IRA. You cannot use a traditional IRA
as collateral for a loan or other obligation. If you borrow against your IRA or
use it as collateral, its tax-favored status will be lost as of the first day
of the tax year in which this prohibited event occurs. If this happens, you
must include the value of the traditional IRA in your federal gross income.
Also, the early distribution penalty tax of 10% may apply if you have not
reached age 59-1/2 before the first day of that tax year.
EARLY DISTRIBUTION PENALTY TAX
A penalty tax of 10% of the taxable portion of a distribution applies to
distributions from a traditional IRA made before you reach age 59-1/2. Some of
the available exceptions to the pre-age 59-1/2 penalty tax include distributions
made:
o on or after your death; or
o because you are disabled (special federal income tax definition); or
o used to pay certain extraordinary medical expenses (special federal income
tax definition); or
o used to pay medical insurance premiums for unemployed individuals (special
federal income tax definition); or
o used to pay certain first-time home buyer expenses (special federal income
tax definition; $10,000 lifetime total limit for these distributions from
all your traditional and Roth IRAs); or
o used to pay certain higher education expenses (special federal income tax
definition); or
o in the form of substantially equal periodic payments made at least annually
over your life (or your life expectancy), or over the joint lives of you
and your beneficiary (or your joint life expectancy) using an IRS-approved
distribution method.
ROTH INDIVIDUAL RETIREMENT ANNUITIES ("ROTH IRAS")
This section of the prospectus covers some of the special tax rules that apply
to Roth IRAs. If the rules are the same as those that apply to the traditional
IRA, we will refer you to the same topic under "Traditional IRAs."
The EQUI-VEST(R) Roth IRA contracts are designed to qualify as Roth individual
retirement annuities under Sections 408(a) and 408(b) of the Internal Revenue
Code.
CONTRIBUTIONS TO ROTH IRAS
Individuals may make four different types of contributions to a Roth IRA:
o regular after-tax contributions out of earnings; or
o taxable rollover contributions from Traditional IRAs ("conversion"
contributions); or
o tax-free rollover contributions from other Roth IRAs; or
o tax-free direct custodian-to-custodian transfers from other Roth IRAs
("direct transfers").
If you use the forms we require, we will also accept traditional IRA funds
which are subsequently recharacterized as Roth IRA funds following special
federal income tax rules.
REGULAR CONTRIBUTIONS TO ROTH IRAS
LIMITS ON REGULAR CONTRIBUTIONS. Generally, $3,000 is the maximum amount that
you may contribute to all IRAs (including Roth IRAs) for 2002. This limit does
not apply to rollover contributions or direct custodian-to-custodian transfers
into a Roth IRA. Any contributions to Roth IRAs reduce your ability to
contribute to traditional IRAs and vice versa. When your earnings are below
$3,000, your earned income or compensation for the year is the most you can
contribute. If you are married and file a joint income tax return, you and your
spouse may combine your compensation to determine the amount of regular
contributions you are permitted to make to Roth IRAs and traditional IRAs. See
the discussion above under traditional IRAs. If you or your spouse are at least
age 50 at any time during 2002, additional catch-up contributions totalling up
to $500 can be made for the calendar year 2002.
With a Roth IRA, you can make regular contributions when you reach 70-1/2, as
long as you have sufficient earnings. But, you cannot make contributions,
regardless of your age, for any year that:
o your federal income tax filing status is "married filing jointly" and your
modified adjusted gross income is over $160,000; or,
o your federal income tax filing status is "single" and your modified adjusted
gross income is over $110,000.
However, you can make regular Roth IRA contributions in reduced amounts when:
o your federal income tax filing status is "married filing jointly" and your
modified adjusted gross income is between $150,000 and $160,000; or
o your federal income tax filing status is "single" and your modified adjusted
gross income is between $95,000 and $110,000.
If you are married and filing separately and your modified adjusted gross
income is between $0 and $10,000 the amount of regular contribution you are
permitted to make is phased out. If your modified adjusted gross income is more
than $10,000 you cannot make a regular Roth IRA contribution.
WHEN YOU CAN MAKE CONTRIBUTIONS? Same as traditional IRAs.
DEDUCTIBILITY OF CONTRIBUTIONS. Roth IRA contributions are not tax deductible.
46 Tax information
ROLLOVERS AND DIRECT TRANSFERS
WHAT IS THE DIFFERENCE BETWEEN ROLLOVER AND DIRECT TRANSFER TRANSACTIONS? You
may make rollover contributions to a Roth IRA from only two sources:
o another Roth IRA ("tax-free rollover contribution"); or
o another traditional IRA, including a SEP-IRA or SIMPLE IRA (after a two-year
rollover limitation period for SIMPLE-IRA funds) in a taxable "conversion"
rollover ("conversion contribution").
You may not make contributions to a Roth IRA from a qualified plan under
Section 401(a) of the Internal Revenue Code or a TSA under Section 403(b) of
the Internal Revenue Code or any other eligible retirement plan. You may make
direct transfer contributions to a Roth IRA only from another Roth IRA.
The difference between a rollover transaction and a direct transfer transaction
is the following. In a rollover transaction you actually take possession of the
funds rolled over, or are considered to have received them under tax law in the
case of a change from one type of plan to another. In a direct transfer
transaction, you never take possession of the funds, but direct the IRA
custodian, trustee, or issuer to transfer the first Roth IRA funds directly to
Equitable Life, as the Roth IRA issuer. You can make direct transfer
transactions only between identical plan types (for example, Roth IRA to Roth
IRA). You can also make rollover transactions between identical plan types.
However, you can only use rollover transactions between different plan types
(for example, traditional IRA to Roth IRA).
You may make both Roth IRA to Roth IRA rollover transactions and Roth IRA to
Roth IRA direct transfer transactions. This can be accomplished on a completely
tax-free basis. However, you may make Roth IRA to Roth IRA rollover
transactions only once in any 12-month period for the same funds.
Trustee-to-trustee or custodian-to-custodian direct transfers can be made more
frequently than once a year. Also, if you send us the rollover contribution to
apply it to a Roth IRA, you must do so within 60 days after you receive the
proceeds from the original IRA to get rollover treatment.
The surviving spouse beneficiary of a deceased individual can roll over or
directly transfer an inherited Roth IRA to one or more other Roth IRAs. In some
cases, Roth IRAs can be transferred on a tax-free basis between spouses or
former spouses as a result of a court-ordered divorce or separation decree.
CONVERSION CONTRIBUTIONS TO ROTH IRAS
In a conversion rollover transaction, you withdraw (or are considered to have
withdrawn) all or a portion of funds from a traditional IRA you maintain and
convert it to a Roth IRA within 60 days after you receive (or are considered to
have received) the traditional IRA proceeds. Unlike a rollover from a
traditional IRA to another traditional IRA, the conversion rollover transaction
is not tax-free. Instead, the distribution from the traditional IRA is
generally fully taxable. For this reason, we are required to withhold 10%
federal income tax from the amount converted unless you elect out of such
withholding. (If you have ever made nondeductible regular IRA contributions to
any traditional IRA -- whether or not it is the traditional IRA you are
converting -- a pro rata portion of the distribution is tax-free.)
There is, however, no early distribution penalty tax on the Traditional IRA
withdrawal that you are converting to a Roth IRA, even if you are under age
59-1/2.
You cannot make conversion contributions to a Roth IRA for any taxable year in
which your modified adjusted gross income exceeds $100,000. (For this purpose,
your modified adjusted gross income is calculated without the gross income
stemming from the traditional IRA conversion.) You also cannot make conversion
contributions to a Roth IRA for any taxable year in which your federal income
tax filing status is "married filing separately."
Finally, you cannot make conversion contributions to a Roth IRA to the extent
that the funds in your traditional IRA are subject to the annual required
minimum distribution rule applicable to traditional IRAs beginning at age
70-1/2.
You cannot convert and reconvert an amount during the same taxable year, or if
later, during the 30-day period following a recharacterization. If you
reconvert during either of these periods, it will be a failed Roth IRA
conversion.
RECHARACTERIZATIONS
You may be able to treat a contribution made to one type of IRA as having been
made to a different type of IRA. This is called recharacterizing the
contribution.
HOW TO RECHARACTERIZE. To recharacterize a contribution, you generally must
have the contribution transferred from the first IRA (the one to which it was
made) to the second IRA in a deemed trustee-to-trustee transfer. If the
transfer is made by the due date (including extensions) for your tax return for
the year during which the contribution was made, you can elect to treat the
contribution as having been originally made to the second IRA instead of to the
first IRA. It will be treated as having been made to the second IRA on the same
date that it was actually made to the first IRA. You must report the
recharacterization, and must treat the contribution as having been made to the
second IRA, instead of the first IRA, on your tax return for the year during
which the contribution was made.
The contribution will not be treated as having been made to the second IRA
unless the transfer includes any net income allocable to the contribution. You
can take into account any loss on the contribution while it was in the IRA when
calculating the amount that must be transferred. If there was a loss, the net
income you must transfer may be a negative amount.
No deduction is allowed for the contribution to the first IRA and any net
income transferred with the recharacterized contribution is treated as earned
in the second IRA. The contribution will not be treated as having been made to
the second IRA to the extent any deduction was allowed with respect to the
contribution to the first IRA.
Tax information 47
For recharacterization purposes, a distribution from a traditional IRA that is
received in one tax year and rolled over into a Roth IRA in the next year, but
still within 60 days of the distribution from the traditional IRA, is treated
as a contribution to the Roth IRA in the year of the distribution from the
traditional IRA.
Roth IRA conversion contributions from a SEP-IRA or SIMPLE IRA can be
recharacterized to a SEP-IRA or SIMPLE-IRA (including the original SEP-IRA or
SIMPLE IRA).
To recharacterize a contribution you must use our forms.
The recharacterization of a contribution is not treated as a rollover for
purposes of the 12 month limitation period described above. This rule applies
even if the contribution would have been treated as a rollover contribution by
the second IRA if it had been made directly to the second IRA rather than as a
result of a recharacterization of a contribution to the first IRA.
WITHDRAWALS, PAYMENTS AND TRANSFERS OF FUNDS OUT OF ROTH IRAS
NO FEDERAL INCOME TAX LAW RESTRICTIONS ON WITHDRAWALS. You can withdraw any or
all of your funds from a Roth IRA at any time; you do not need to wait for a
special event like retirement.
DISTRIBUTIONS FROM ROTH IRAS
Distributions include withdrawals from your contract, surrender and termination
of your contract and annuity payments from your contract. Death benefits are
also distributions.
The following distributions from Roth IRAs are free of income tax:
o Rollovers from a Roth IRA to another Roth IRA;
o Direct transfers from a Roth IRA to another Roth IRA;
o Qualified distributions from a Roth IRA; and
o Return of excess contributions or amounts recharacterized to a traditional
IRA.
QUALIFIED DISTRIBUTIONS FROM ROTH IRAS
Qualified distributions from Roth IRAs made because of one of the following
four qualifying events or reasons are not includable in income:
o you reach age 59-1/2; or
o you die; or
o you become disabled (special federal income tax definition); or
o your distribution is a "qualified first-time homebuyer distribution" (special
federal income tax definition; $10,000 lifetime total limit for these
distributions from all of your traditional and Roth IRAs).
You also have to meet a five-year aging period. A qualified distribution is any
distribution made after the five-taxable-year period beginning with the first
taxable year for which you made any contribution to any Roth IRA (whether or
not the one from which the distribution is being made). It is not possible to
have a tax-free qualified distribution before the year 2003 because of the
five-year aging requirement.
NONQUALIFIED DISTRIBUTIONS FROM ROTH IRAS
Nonqualified distributions from Roth IRAs are distributions that do not meet
both the qualifying event and five-year aging period tests described above. If
you receive such a distribution, part of it may be taxable. For purposes of
determining the correct tax treatment of distributions (other than the
withdrawal of excess contributions and the earnings on them), there is a set
order in which contributions (including conversion contributions) and earnings
are considered to be distributed from your Roth IRA. The order of distributions
is as follows:
(1) Regular contributions.
(2) Conversion contributions, on a first-in-first-out basis (generally, total
conversions from the earliest year first). These conversion contributions
are taken into account as follows:
(a) Taxable portion (the amount required to be included in gross income
because of conversion) first, and then the
(b) Nontaxable portion.
(3) Earnings on contributions.
Rollover contributions from other Roth IRAs are disregarded for this purpose.
To determine the taxable amounts distributed, distributions and contributions
are aggregated or grouped and added together as follows:
(1) All distributions made during the year from all Roth IRAs you maintain -
with any custodian or issuer - are added together.
(2) All regular contributions made during and for the year (contributions made
after the close of the year, but before the due date of your return) are
added together. This total is added to the total undistributed regular
contributions made in prior years.
(3) All conversion contributions made during the year are added together. For
purposes of the ordering rules, in the case of any conversion in which the
conversion distribution is made in 2002 and the conversion contribution is
made in 2003, the conversion contribution is treated as contributed prior
to the other conversion contributions made in 2003.
Any recharacterized contributions that end up in a Roth IRA are added to the
appropriate contribution group for the year that the original contribution
would have been taken into account if it had been made directly to the Roth
IRA.
Any recharacterized contribution that ends up in an IRA other than a Roth IRA
is disregarded for the purpose of grouping both contributions and
distributions. Any amount withdrawn to correct an excess contribution
(including the earnings withdrawn) is also disregarded for this purpose.
48 Tax information
You must keep your own records of regular and conversion contributions to all
Roth IRAs to assure appropriate taxation. You may have to file information on
your contributions to and distributions from any Roth IRA on your tax return.
You may have to retain all income tax returns and records pertaining to such
contributions and distributions until your interests in all Roth IRAs are
distributed.
Like traditional IRAs, taxable distributions from a Roth IRA are not entitled
to the special favorable ten-year averaging and long-term capital gain
treatment available in certain cases to distributions from qualified plans.
REQUIRED MINIMUM DISTRIBUTIONS
Lifetime required minimum distributions do not apply.
REQUIRED MINIMUM DISTRIBUTION AT DEATH
Same as traditional IRA under "What are the required minimum distribution
payments after you die?"
PAYMENTS TO A BENEFICIARY AFTER YOUR DEATH
Distributions to a beneficiary generally receive the same tax treatment as if
the distribution had been made to you.
BORROWING AND LOANS ARE PROHIBITED TRANSACTIONS
Same as traditional IRA.
EXCESS CONTRIBUTIONS
Generally, the same as traditional IRA, except that regular contributions made
after age 70-1/2 are not "excess contributions."
Excess rollover contributions to Roth IRAs are contributions not eligible to be
rolled over (for example, conversion contributions from a traditional IRA if
your modified adjusted gross income is in excess of $100,000 in the conversion
year).
You can withdraw or recharacterize any contribution to a Roth IRA before the
due date (including extensions) for filing your federal income tax return for
the tax year. If you do this, you must also withdraw or recharacterize any
earnings attributable to the contribution.
EARLY DISTRIBUTION PENALTY TAX
Same as traditional IRA.
For Roth IRAs, special penalty rules may apply to amounts withdrawn
attributable to 1998 conversion rollovers.
ILLUSTRATION OF GUARANTEED INTEREST RATES
In the following two tables, we provide information that the IRS requires us to
furnish to prospective IRA contract owners. In the tables we illustrate the 3%
minimum guaranteed interest rate for contributions we assume are allocated
entirely to the guaranteed interest option. In Table I we assume a $1,000
contribution made annually on the contract date and on each anniversary after
that. In Table II we assume a single initial contribution of $1,000, and no
additional contributions. The 3% guaranteed interest rate is in the contract.
The account values shown reflect no withdrawal charges. The cash values shown
reflect the withdrawal charge that applies if you surrender your contract for
its cash value. In all cases we assume no transfers.
These values reflect the effect of the annual administrative charge deducted at
the end of each contract year in which the account value is less than $20,000.
To find the appropriate value for the end of the contract year at any
particular age, you subtract the age (nearest birthday) at issue of the
contract from the current age and find the corresponding year in the table.
Years that correspond to a current age over 70, should be ignored, unless the
contract is a Roth IRA.
You should consider the information shown in the tables in light of your
present age. Also, with respect to Table I, you should consider your ability to
contribute $1,000 annually. Any change in the amounts contributed annually in
Table I, or in the amount of the single contribution in Table II would, of
course, change the results shown.
Tax information 49
TABLE I
ACCOUNT VALUES AND CASH VALUES
(assuming $1,000 contributions made annually
at the beginning of the contract year)
- --------------------------------------------------------------------------------
3% MINIMUM GUARANTEE
CONTRACT YEAR END ACCOUNT VALUE CASH VALUE
- --------------------------------------------------------------------------------
1 $ 1,009.40 $ 954.89
- --------------------------------------------------------------------------------
2 $ 2,039.68 $ 1,929.54
- --------------------------------------------------------------------------------
3 $ 3,100.87 $ 2,933.43
- --------------------------------------------------------------------------------
4 $ 4,193.90 $ 3,967.43
- --------------------------------------------------------------------------------
5 $ 5,319.72 $ 5,032.45
- --------------------------------------------------------------------------------
6 $ 6,479.31 $ 6,129.42
- --------------------------------------------------------------------------------
7 $ 7,673.69 $ 7,313.69
- --------------------------------------------------------------------------------
8 $ 8,903.90 $ 8,543.90
- --------------------------------------------------------------------------------
9 $ 10,171.01 $ 9,811.01
- --------------------------------------------------------------------------------
10 $ 11,476.14 $ 11,116.14
- --------------------------------------------------------------------------------
11 $ 12,820.43 $ 12,460.43
- --------------------------------------------------------------------------------
12 $ 14,205.04 $ 13,845.04
- --------------------------------------------------------------------------------
13 $ 15,631.19 $ 15,271.19
- --------------------------------------------------------------------------------
14 $ 17,100.13 $ 16,740.13
- --------------------------------------------------------------------------------
15 $ 18,613.13 $ 18,253.13
- --------------------------------------------------------------------------------
16 $ 20,201.53 $ 19,841.53
- --------------------------------------------------------------------------------
17 $ 21,837.57 $ 21,477.57
- --------------------------------------------------------------------------------
18 $ 23,522.70 $ 23,162.70
- --------------------------------------------------------------------------------
19 $ 25,258.38 $ 24,898.38
- --------------------------------------------------------------------------------
20 $ 27,046.13 $ 26,686.13
- --------------------------------------------------------------------------------
21 $ 28,887.52 $ 28,527.52
- --------------------------------------------------------------------------------
22 $ 30,784.14 $ 30,424.14
- --------------------------------------------------------------------------------
23 $ 32,737.67 $ 32,377.67
- --------------------------------------------------------------------------------
24 $ 34,749.80 $ 34,389.80
- --------------------------------------------------------------------------------
25 $ 36,822.29 $ 36,462.29
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
3% MINIMUM GUARANTEE
CONTRACT YEAR END ACCOUNT VALUE CASH VALUE
- --------------------------------------------------------------------------------
26 $ 38,956.96 $ 38,596.96
- --------------------------------------------------------------------------------
27 $ 41,155.67 $ 40,795.67
- --------------------------------------------------------------------------------
28 $ 43,420.34 $ 43,060.34
- --------------------------------------------------------------------------------
29 $ 45,752.95 $ 45,392.95
- --------------------------------------------------------------------------------
30 $ 48,155.53 $ 47,795.53
- --------------------------------------------------------------------------------
31 $ 50,630.20 $ 50,270.20
- --------------------------------------------------------------------------------
32 $ 53,179.11 $ 52,819.11
- --------------------------------------------------------------------------------
33 $ 55,804.48 $ 55,444.48
- --------------------------------------------------------------------------------
34 $ 58,508.61 $ 58,148.61
- --------------------------------------------------------------------------------
35 $ 61,293.87 $ 60,933.87
- --------------------------------------------------------------------------------
36 $ 64,162.69 $ 63,802.69
- --------------------------------------------------------------------------------
37 $ 67,117.57 $ 66,757.57
- --------------------------------------------------------------------------------
38 $ 70,161.10 $ 69,801.10
- --------------------------------------------------------------------------------
39 $ 73,295.93 $ 72,935.93
- --------------------------------------------------------------------------------
40 $ 76,524.81 $ 76,164.81
- --------------------------------------------------------------------------------
41 $ 79,850.55 $ 79,490.55
- --------------------------------------------------------------------------------
42 $ 83,276.07 $ 82,916.07
- --------------------------------------------------------------------------------
43 $ 86,804.35 $ 86,444.35
- --------------------------------------------------------------------------------
44 $ 90,438.48 $ 90,078.48
- --------------------------------------------------------------------------------
45 $ 94,181.64 $ 93,821.64
- --------------------------------------------------------------------------------
46 $ 98,037.08 $ 97,677.08
- --------------------------------------------------------------------------------
47 $ 102,008.20 $ 101,648.20
- --------------------------------------------------------------------------------
48 $ 106,098.44 $ 105,738.44
- --------------------------------------------------------------------------------
49 $ 110,311.40 $ 109,951.40
- --------------------------------------------------------------------------------
50 $ 114,650.74 $ 114,290.74
- --------------------------------------------------------------------------------
50 Tax information
TABLE II
ACCOUNT VALUES AND CASH VALUES
(assuming a single contribution of $1,000 and
no further contribution)
- --------------------------------------------------------------------------------
3% MINIMUM GUARANTEE
CONTRACT YEAR END ACCOUNT VALUE CASH VALUE
- --------------------------------------------------------------------------------
1 $ 1,009.40 $ 954.89
- --------------------------------------------------------------------------------
2 $ 1,018.89 $ 963.87
- --------------------------------------------------------------------------------
3 $ 1,019.46 $ 964.40
- --------------------------------------------------------------------------------
4 $ 1,020.04 $ 964.96
- --------------------------------------------------------------------------------
5 $ 1,020.64 $ 965.53
- --------------------------------------------------------------------------------
6 $ 1,021.26 $ 966.11
- --------------------------------------------------------------------------------
7 $ 1,021.90 $ 1,021.90
- --------------------------------------------------------------------------------
8 $ 1,022.55 $ 1,022.55
- --------------------------------------------------------------------------------
9 $ 1,023.23 $ 1,023.23
- --------------------------------------------------------------------------------
10 $ 1,023.93 $ 1,023.93
- --------------------------------------------------------------------------------
11 $ 1,024.65 $ 1,024.65
- --------------------------------------------------------------------------------
12 $ 1,025.38 $ 1,025.38
- --------------------------------------------------------------------------------
13 $ 1,026.15 $ 1,026.15
- --------------------------------------------------------------------------------
14 $ 1,026.93 $ 1,026.93
- --------------------------------------------------------------------------------
15 $ 1,027.74 $ 1,027.74
- --------------------------------------------------------------------------------
16 $ 1,028.57 $ 1,028.57
- --------------------------------------------------------------------------------
17 $ 1,029.43 $ 1,029.43
- --------------------------------------------------------------------------------
18 $ 1,030.31 $ 1,030.31
- --------------------------------------------------------------------------------
19 $ 1,031.22 $ 1,031.22
- --------------------------------------------------------------------------------
20 $ 1,032.16 $ 1,032.16
- --------------------------------------------------------------------------------
21 $ 1,033.12 $ 1,033.12
- --------------------------------------------------------------------------------
22 $ 1,034.11 $ 1,034.11
- --------------------------------------------------------------------------------
23 $ 1,035.14 $ 1,035.14
- --------------------------------------------------------------------------------
24 $ 1,036.19 $ 1,036.19
- --------------------------------------------------------------------------------
25 $ 1,037.28 $ 1,037.28
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
3% MINIMUM GUARANTEE
CONTRACT YEAR END ACCOUNT VALUE CASH VALUE
- --------------------------------------------------------------------------------
26 $ 1,038.40 $ 1,038.40
- --------------------------------------------------------------------------------
27 $ 1,039.55 $ 1,039.55
- --------------------------------------------------------------------------------
28 $ 1,040.73 $ 1,040.73
- --------------------------------------------------------------------------------
29 $ 1,041.96 $ 1,041.96
- --------------------------------------------------------------------------------
30 $ 1,043.22 $ 1,043.22
- --------------------------------------------------------------------------------
31 $ 1,044.51 $ 1,044.51
- --------------------------------------------------------------------------------
32 $ 1,045.85 $ 1,045.85
- --------------------------------------------------------------------------------
33 $ 1,047.22 $ 1,047.22
- --------------------------------------------------------------------------------
34 $ 1,048.64 $ 1,048.64
- --------------------------------------------------------------------------------
35 $ 1,050.10 $ 1,050.10
- --------------------------------------------------------------------------------
36 $ 1,051.60 $ 1,051.60
- --------------------------------------------------------------------------------
37 $ 1,053.15 $ 1,053.15
- --------------------------------------------------------------------------------
38 $ 1,054.74 $ 1,054.74
- --------------------------------------------------------------------------------
39 $ 1,056.39 $ 1,056.39
- --------------------------------------------------------------------------------
40 $ 1,058.08 $ 1,058.08
- --------------------------------------------------------------------------------
41 $ 1,059.82 $ 1,059.82
- --------------------------------------------------------------------------------
42 $ 1,061.61 $ 1,061.61
- --------------------------------------------------------------------------------
43 $ 1,063.46 $ 1,063.46
- --------------------------------------------------------------------------------
44 $ 1,065.37 $ 1,065.37
- --------------------------------------------------------------------------------
45 $ 1,067.33 $ 1,067.33
- --------------------------------------------------------------------------------
46 $ 1,069.35 $ 1,069.35
- --------------------------------------------------------------------------------
47 $ 1,071.43 $ 1,071.43
- --------------------------------------------------------------------------------
48 $ 1,073.57 $ 1,073.57
- --------------------------------------------------------------------------------
49 $ 1,075.78 $ 1,075.78
- --------------------------------------------------------------------------------
50 $ 1,078.05 $ 1,078.05
- --------------------------------------------------------------------------------
Tax information 51
FEDERAL AND STATE INCOME TAX WITHHOLDING AND INFORMATION REPORTING
We must withhold federal income tax from distributions from annuity contracts.
You may be able to elect out of this income tax withholding in some cases.
Generally, we do not have to withhold if your distributions are not taxable.
The rate of withholding will depend on the type of distribution and, in certain
cases, the amount of your distribution. Any income tax withheld is a credit
against your income tax liability. If you do not have sufficient income tax
withheld or do not make sufficient estimated income tax payments, you may incur
penalties under the estimated income tax rules.
You must file your request not to withhold in writing before the payment or
distribution is made. Our processing office will provide forms for this
purpose. You cannot elect out of withholding unless you provide us with your
correct Taxpayer Identification Number and a United States residence address.
You cannot elect out of withholding if we are sending the payment out of the
United States.
You should note the following special situations:
o We might have to withhold and/or report on amounts we pay under a free look
or cancellation.
o We are generally required to withhold on conversion rollovers of traditional
IRAs to Roth IRAs, as it is considered a withdrawal from the traditional
IRA and is taxable.
o We are required to withhold on the gross amount of a distribution from a Roth
IRA to the extent it is reasonable for us to believe that a distribution
is includable in your gross income. This may result in tax being withheld
even though the Roth IRA distribution is ultimately not taxable. You can
elect out of withholding as described below.
Special withholding rules apply to foreign recipients and United States
citizens residing outside the United States. We do not discuss these rules here
in detail. However, we may require additional documentation in the case of
payments made to non-United States persons and United States persons living
abroad prior to processing any required transaction.
Certain states have indicated that state income tax withholding will also apply
to payments from the contracts made to residents. In some states, you may elect
out of state withholding, even if federal withholding applies. Generally, an
election out of federal withholding will also be considered an election out of
state withholding. If you need more information concerning a particular state
or any required forms, call our processing office at the toll-free number.
FEDERAL INCOME TAX WITHHOLDING ON PERIODIC ANNUITY PAYMENTS
We withhold differently on "periodic" and "non-periodic" payments. For a
periodic annuity payment, for example, unless you specify a different number of
withholding exemptions, we withhold assuming that you are married and claiming
three withholding exemptions. If you do not give us your correct Taxpayer
Identification Number, we withhold as if you are single with no exemptions.
Based on the assumption that you are married and claiming three withholding
exemptions, if you receive less than $15,360 in periodic annuity payments in
2002 your payments will generally be exempt from federal income tax
withholding. You could specify a different choice of withholding exemption or
request that tax be withheld. Your withholding election remains effective
unless and until you revoke it. You may revoke or change your withholding
election at any time.
FEDERAL INCOME TAX WITHHOLDING ON NON-PERIODIC ANNUITY PAYMENTS (WITHDRAWALS)
For a non-periodic distribution (total surrender, termination, or partial
withdrawal), we generally withhold at a flat 10% rate. We apply that rate to
the taxable amount in the case of nonqualified contracts, and to the payment
amount in the case of traditional IRAs and Roth IRAs, where it is reasonable to
assume an amount is includable in gross income.
IMPACT OF TAXES TO EQUITABLE LIFE
The contracts provide that we may charge Separate Account A for taxes. We do
not now, but may in the future set up reserves for such taxes.
52 Tax information
8. More information
- --------------------------------------------------------------------------------
ABOUT OUR SEPARATE ACCOUNT A
Each variable investment option is a subaccount of our Separate Account A. We
established Separate Account A in 1968 under special provisions of the New York
Insurance Law. These provisions prevent creditors from any other business we
conduct from reaching the assets we hold in our variable investment options for
owners of our variable annuity contracts. We are the legal owner of all of the
assets in Separate Account A and may withdraw any amounts that exceed our
reserves and other liabilities with respect to variable investment options
under our contracts. The results of Separate Account A's operations are
accounted for without regard to Equitable Life's other operations.
Separate Account A is registered under the Investment Company Act of 1940 and
is classified by that act as a "unit investment trust." The SEC, however, does
not manage or supervise Equitable Life or Separate Account A.
Each subaccount (variable investment option) within Separate Account A that is
available under the contract invests solely in Class IB/B shares issued by the
corresponding portfolio of either Trust.
We reserve the right subject to compliance with laws that apply:
(1) to add variable investment options to, or to remove variable investment
options from, Separate Account A, or to add other separate accounts;
(2) to combine any two or more variable investment options;
(3) to transfer the assets we determine to be the shares of the class of
contracts to which the contracts belong from any variable investment
option to another variable investment option;
(4) to operate Separate Account A or any variable investment option as a
management investment company under the Investment Company Act of 1940 (in
which case, charges and expenses that otherwise would be assessed against
an underlying mutual fund would be assessed against Separate Account A or
a variable investment option directly);
(5) to deregister Separate Account A under the Investment Company Act of 1940;
(6) to restrict or eliminate any voting rights as to Separate Account A; and
(7) to cause one or more variable investment options to invest some or all of
their assets in one or more other trusts or investment companies.
ABOUT THE TRUSTS
EQ Advisors Trust and AXA Premier VIP Trust are registered under the Investment
Company Act of 1940. They are classified as "open-end management investment
companies," more commonly called mutual funds. Each Trust issues different
shares relating to each of its portfolios.
Equitable Life serves as the investment manager of the Trusts. As such
Equitable Life oversees the activities of the investment advisors with respect
to the Trusts and is responsible for retaining or discontinuing the services of
those advisors. (Prior to September 1999, EQ Financial Consultants Inc. the
predecessor to AXA Advisors, LLC and an affiliate of Equitable Life served as
investment manager to EQ Advisors Trust).
EQ Advisors Trust commenced operations on May 1, 1997. For periods prior to
October 18, 1999 the Alliance portfolios (other than EQ/Alliance Premier Growth
and EQ/Alliance Technology) were part of The Hudson River Trust. On October 18,
1999, the assets of these portfolios became the corresponding portfolios of EQ
Advisors Trust. AXA Premier VIP Trust commenced operations on December 31,
2001.
The Trusts do not impose sales charges or "loads" for buying and selling their
shares. All dividends and other distributions on the Trusts' shares are
reinvested in full. The Board of Trustees of each Trust may establish
additional portfolios or eliminate existing portfolios at any time. More
detailed information about each Trust, its portfolio investment objectives,
policies, restrictions, risks, expenses, its Rule 12b-1 Plan relating to the
Class IB/B shares, and other aspects of its operations, appears in the
prospectuses for each Trust, which are attached at the end of this Prospectus,
or in their respective SAIs, which are available upon request.
ABOUT OUR FIXED MATURITY OPTIONS
RATES TO MATURITY AND PRICE PER $100 OF MATURITY VALUE
We can determine the amount required to be allocated to one or more fixed
maturity options in order to produce specified maturity values. For example, we
can tell you how much you need to allocate per $100 of maturity value.
The rates to maturity are determined weekly. The rates in the table below are
illustrative only and will most likely differ from the rates applicable at time
of purchase. Current rates to maturity can be obtained through TOPS or EQAccess
or from your financial professional.
The rates to maturity for new allocations as of February 15, 2002 and the
related price per $100 of maturity value were as shown below.
- --------------------------------------------------------------------------------
FIXED MATURITY OPTIONS
WITH JUNE 15TH
MATURITY DATE OF RATE TO MATURITY AS OF PRICE PER $100 OF
MATURITY YEAR FEBRUARY 15, 2002 MATURITY VALUE
- --------------------------------------------------------------------------------
2002 3.00% $ 99.03
2003 3.00% $ 96.15
2004 3.25% $ 92.81
2005 3.95% $ 87.89
2006 4.30% $ 83.33
2007 4.75% $ 78.08
2008 5.05% $ 73.19
2009 5.30% $ 68.47
- --------------------------------------------------------------------------------
More information 53
- --------------------------------------------------------------------------------
FIXED MATURITY OPTIONS
WITH JUNE 15TH
MATURITY DATE OF RATE TO MATURITY AS OF PRICE PER $100 OF
MATURITY YEAR FEBRUARY 15, 2002 MATURITY VALUE
- --------------------------------------------------------------------------------
2010 5.50% $ 64.00
2011 5.65% $ 59.87
- --------------------------------------------------------------------------------
HOW WE DETERMINE THE MARKET VALUE ADJUSTMENT
We use the following procedure to calculate the market value adjustment (up or
down) we make if you withdraw all of your value from a fixed maturity option
before its maturity date.
(1) We determine the market adjusted amount on the date of the withdrawal as
follows:
(a) We determine the fixed maturity amount that would be payable on the
maturity date, using the rate to maturity for the fixed maturity
option.
(b) We determine the period remaining in your fixed maturity option (based
on the withdrawal date) and convert it to fractional years based
on a 365-day year. For example, three years and 12 days becomes
3.0329.
(c) We determine the current rate to maturity that applies on the withdrawal
date to new allocations to the same fixed maturity option.
(d) We determine the present value of the fixed maturity amount payable at
the maturity date, using the period determined in (b) and the rate
determined in (c).
(2) We determine the fixed maturity amount as of the current date.
(3) We subtract (2) from the result in (1)(d). The result is the market value
adjustment applicable to such fixed maturity option, which may be positive
or negative.
- --------------------------------------------------------------------------------
Your market adjusted amount is the present value of the maturity value
discounted at the rate to maturity in effect for new contributions to that same
fixed maturity option on the date of the calculation.
- --------------------------------------------------------------------------------
If you withdraw only a portion of the amount in a fixed maturity option, the
market value adjustment will be a percentage of the market value adjustment
that would have applied if you had withdrawn the entire value in that fixed
maturity option. This percentage is equal to the percentage of the value in the
fixed maturity option that you are withdrawing. Any withdrawal charges that are
deducted from a fixed maturity option will result in a market value adjustment
calculated in the same way. See Appendix II at the end of this Prospectus for
an example.
For purposes of calculating the rate to maturity for new allocations to a fixed
maturity option (see (1)(c) above), we use the rate we have in effect for new
allocations to that fixed maturity option. We use this rate even if new
allocations to that option would not be accepted at that time. This rate will
not be less than 3%. If we do not have a rate to maturity in effect for a fixed
maturity option to which the "current rate to maturity" in (1)(c) above would
apply, we will use the rate at the next closest maturity date. If we are no
longer offering new fixed maturity options, the "current rate to maturity" will
be determined in accordance with our procedures then in effect. We reserve the
right to add up to 0.50% to the current rate in (1)(c) above for purposes of
calculating the market value adjustment only.
INVESTMENTS UNDER THE FIXED MATURITY OPTIONS
Amounts allocated to the fixed maturity options are held in a "nonunitized"
separate account we have established under the New York Insurance Law. This
separate account provides an additional measure of assurance that we will make
full payment of amounts due under the fixed maturity options. Under New York
Insurance Law, the portion of the separate account's assets equal to the
reserves and other contract liabilities relating to the contracts are not
chargeable with liabilities from any other business we may conduct. We own the
assets of the separate account, as well as any favorable investment performance
on those assets. You do not participate in the performance of the assets held
in this separate account. We may, subject to state law that applies, transfer
all assets allocated to the separate account to our general account. We
guarantee all benefits relating to your value in the fixed maturity options,
regardless of whether assets supporting fixed maturity options are held in a
separate account or our general account.
We have no specific formula for establishing the rates to maturity for the
fixed maturity options. We expect the rates to be influenced by, but not
necessarily correspond to, among other things, the yields that we can expect to
realize on the separate account's investments from time to time. Our current
plans are to invest in fixed-income obligations, including corporate bonds,
mortgage-backed and asset-backed securities and government and agency issues
having durations in the aggregate consistent with those of the fixed maturity
options.
Although the above generally describes our plans for investing the assets
supporting our obligations under the fixed maturity options under the
contracts, we are not obligated to invest those assets according to any
particular plan except as we may be required to by state insurance laws. We
will not determine the rates to maturity we establish by the performance of the
nonunitized separate account.
ABOUT THE GENERAL ACCOUNT
Our general account supports all of our policy and contract guarantees,
including those that apply to the guaranteed interest option and the fixed
maturity options, as well as our general obligations.
The general account is subject to regulation and supervision by the Insurance
Department of the State of New York and to the insurance laws and regulations
of all jurisdictions where we are authorized to do business. Because of
exemptions and exclusionary provisions that apply, interests in the general
account have not been registered under the Securities Act of 1933, nor is the
general account an investment company under the Investment Company Act of 1940.
However, the market value adjustment interests under the contracts are
registered under the Securities Act of 1933.
We have been advised that the staff of the SEC has not reviewed the portions of
this prospectus that relate to the general account (other than market value
adjustment interests). The disclosure with regard to the general account,
however, may be subject to certain provisions of the federal securities laws
relating to the accuracy and completeness of statements made in prospectuses.
54 More information
ABOUT OTHER METHODS OF PAYMENT
AUTOMATIC INVESTMENT PROGRAM -- FOR NQ, TRADITIONAL IRA, AND ROTH IRA CONTRACTS
You may use our automatic investment program, or "AIP," to have a specified
amount automatically deducted from a checking account, money market account, or
credit union checking account and contributed as an additional contribution
into an NQ, Traditional IRA, or Roth IRA contract on a monthly basis. For all
forms of IRAs, your contributions are subject to the limits and conditions on
contributions described in "Tax Information" earlier in this Prospectus.
AIP additional contributions may be allocated to any of the variable investment
options and the guaranteed interest option, but not the fixed maturity options.
Our minimum contribution amount requirement is $20. You choose the day of the
month you wish to have your account debited. However, you may not choose a date
later than the 28th day of the month.
You may cancel AIP at any time by notifying our processing office. We are not
responsible for any debits made to your account before the time written notice
of cancellation is received at our processing office.
PAYROLL DEDUCTION PROGRAM. You can authorize your employer to remit your NQ,
IRA or Roth IRA contributions to us if your employer has a payroll deduction
program. Those contributions are still your contributions, not your employer's.
WIRE TRANSFERS. You may also send your contributions by wire transfer from your
bank.
DATES AND PRICES AT WHICH CONTRACT EVENTS OCCUR
We describe below the general rules for when, and at what prices, events under
your contract will occur. Other portions of this prospectus describe
circumstances that may cause exceptions. We generally do not repeat those
exceptions below.
BUSINESS DAY
Our business day generally is any day on which the New York Stock Exchange is
open for trading. A business day does not include any day we choose not to open
due to emergency conditions. We may also close early due to emergency
conditions. Our business day generally ends at 4:00 p.m., Eastern Time for
purposes of determining the date when contributions are applied and any other
transaction requests are processed. Contributions will be applied and any other
transaction requests will be processed when they are received along with all
the required information unless another date applies as indicated below.
o If your contribution, transfer, or any other transaction request, containing
all the required information, reaches us on a non-business day or after
4:00 p.m., Eastern Time on a business day, we will use the next business
day.
o When a charge is to be deducted on a contract date anniversary that is a
non-business day, we will deduct the charge on the next business day.
o Quarterly rebalancing will be processed on a calendar year basis and
semiannual or annual rebalancing will be processed on the first business
day of the month. Rebalancing will not be done retroactively.
CONTRIBUTIONS AND TRANSFERS
o Contributions allocated to the variable investment options are invested at
the value next determined after the close of the business day.
o Contributions allocated to a fixed maturity option will receive the rate to
maturity in effect for that fixed maturity option on that business day.
o Contributions allocated to the guaranteed interest option will receive the
guaranteed interest rate in effect on that business day.
o If a fixed maturity option is scheduled to mature on June 15th and June 15th
is a non-business day, that fixed maturity option will mature on the prior
business day.
o Transfers to or from variable investment options will be made at the value
next determined after the close of the business day.
o Transfers to the guaranteed interest option will receive the guaranteed
interest rate in effect on that business day.
o Transfers to a fixed maturity option will receive the rate to maturity in
effect for that fixed maturity option on that business day.
o Transfers out of a fixed maturity option will be at the market adjusted
amount on that business day.
o For the fixed-dollar option, the first monthly transfer will occur on the
last business day of the month in which we receive your election form at
our processing office.
o For the interest sweep, the first monthly transfer will occur on the last
business day of the month following the month that we receive your
election form at our processing office.
ABOUT YOUR VOTING RIGHTS
As the owner of shares of the Trusts we have the right to vote on certain
matters involving the portfolios, such as:
o the election of trustees; or
o the formal approval of independent auditors selected for each Trust; or
o any other matters described in each prospectus for the Trusts or requiring a
shareholders' vote under the Investment Company Act of 1940.
We will give contract owners the opportunity to instruct us how to vote the
number of shares attributable to their contracts if a shareholder vote is
taken. If we do not receive instructions in time from all contract owners, we
will vote the shares of a portfolio for which no instructions have been
received in the same proportion as we vote shares of that portfolio for which
we have received instructions. We will also vote any shares that we are
entitled to vote directly because of amounts we have in a portfolio in the same
proportions that contract owners vote.
More information 55
VOTING RIGHTS OF OTHERS
Currently, we control the Trusts. Their shares are sold to our separate
accounts and an affiliated qualified plan trust. In addition, shares of the
Trusts are held by separate accounts of insurance companies unaffiliated with
us. Shares held by these separate accounts will probably be voted according to
the instructions of the owners of insurance policies and contracts issued by
those insurance companies. While this will dilute the effect of the voting
instructions of the contract owners, we currently do not foresee any
disadvantages because of this. The Board of Trustees of each Trust intends to
monitor events in order to identify any material irreconcilable conflicts that
may arise and to determine what action, if any, should be taken in response. If
we believe that a response to any of those events insufficiently protects our
contract owners, we will see to it that appropriate action is taken.
SEPARATE ACCOUNT A VOTING RIGHTS
If actions relating to Separate Account A require contract owner approval,
contract owners will be entitled to one vote for each unit they have in the
variable investment options. Each contract owner who has elected a variable
annuity payout option may cast the number of votes equal to the dollar amount
of reserves we are holding for that annuity in a variable investment option
divided by the annuity unit value for that option. We will cast votes
attributable to any amounts we have in the variable investment options in the
same proportion as votes cast by contract owners.
CHANGES IN APPLICABLE LAW
The voting rights we describe in this prospectus are created under applicable
federal securities laws. To the extent that those laws or the regulations
published under those laws eliminate the necessity to submit matters for
approval by persons having voting rights in separate accounts of insurance
companies, we reserve the right to proceed in accordance with those laws or
regulations.
ABOUT LEGAL PROCEEDINGS
Equitable Life and its affiliates are parties to various legal proceedings. In
our view, none of these proceedings is likely to have a material adverse effect
upon Separate Account A, our ability to meet our obligations under the
contracts, or the distribution of the contracts.
ABOUT OUR INDEPENDENT ACCOUNTANTS
The consolidated financial statements of Equitable Life at December 31, 2001
and 2000, and for the three years ended December 31, 2001, incorporated in this
prospectus by reference to the 2001 Annual Report on Form 10-K are incorporated
in reliance on the report of PricewaterhouseCoopers LLP, independent
accountants, given on the authority of said firm as experts in auditing and
accounting.
FINANCIAL STATEMENTS
The financial statements of Separate Account A, as well as the consolidated
financial statements of Equitable Life, are in the SAI. The SAI is available
free of charge. You may request one by writing to our processing office or
calling 1-800-628-6673.
TRANSFERS OF OWNERSHIP, COLLATERAL ASSIGNMENTS, LOANS, AND BORROWING
You can transfer ownership of an NQ contract at any time before annuity
payments begin. We will continue to treat you as the owner until we receive
written notification of any change at our processing office. You cannot assign
your NQ contract as collateral or security for a loan. Loans are also not
available under your NQ contract. In some cases, an assignment or change of
ownership may have adverse tax consequences. See "Tax information" earlier in
this Prospectus.
You cannot assign or transfer ownership of a Traditional IRA or Roth IRA
contract except by surrender to us. Loans are not available and you cannot
assign Traditional IRA, QP IRA and Roth IRA contracts as security for a loan or
other obligation.
For limited transfers of ownership after the owner's death see "Beneficiary
continuation option" in "Payment of death benefit" earlier in this Prospectus.
You may direct the transfer of the values under your Traditional IRA or Roth
IRA contract to another similar arrangement. Under federal income tax rules. In
the case of such a transfer, we will impose a withdrawal charge if one applies.
DISTRIBUTION OF THE CONTRACTS
AXA Advisors, LLC ("AXA Advisors"), the successor to Equitable Financial
Consultants, Inc., and an affiliate of Equitable Life, is the distributor of
the contracts and has responsibility for sales and marketing functions for
Separate Account A. AXA Advisors serves as the principal underwriter of
Separate Account A. AXA Advisors is registered with the SEC as a broker-dealer
and is a member of the National Association of Securities Dealers, Inc. AXA
Advisors' principal business address is 1290 Avenue of the Americas, New York,
NY 10104.
The contracts are sold by financial professionals who are registered
representatives of AXA Advisors and its affiliates, who are also our licensed
insurance agents. AXA Advisors may also receive compensation and reimbursement
for its marketing services under the terms of its distribution agreement with
Equitable Life. The offering of the contracts is intended to be continuous.
56 More information
9. Investment performance
- --------------------------------------------------------------------------------
The table below shows the average annual total return of the variable
investment options. Average annual total return is the annual rate of growth
that would be necessary to achieve the ending value of a contribution invested
in the variable investment options for the periods shown.
The table takes into account all fees and charges under the contract, including
the withdrawal charge, the annual administrative charge and the optional
ratcheted death benefit charge, if applicable but does not reflect the charges
designed to approximate certain taxes that may be imposed on us, such as
premium taxes in your state if applicable, or any applicable annuity
administrative fee.
The results shown under "Length of option period" are based on the actual
historical investment experience of each variable investment option since its
inception. The results shown under "Length of portfolio period" include some
periods when a variable investment option investing in the Portfolio had not
yet commenced operations. For those periods, we have adjusted the results of
the portfolios to reflect the charges under the contracts that would have
applied had the investment option been available.
For the "EQ/Alliance" portfolios (other than EQ/Alliance Premier Growth), we
have adjusted the results prior to October 1996, when Class IB/B shares for
these portfolios were not available, to reflect the 12b-1 fees currently
imposed. The results shown for the EQ/Alliance Money Market, EQ/Balanced,
EQ/Alliance Common Stock and EQ/Aggressive Stock options for periods before
those options were operated as part of a unit investment trust reflect the
results of the separate accounts that preceded them. The "Since portfolio
inception" figures for these options are based on the date of inception of the
preceding separate accounts. We have adjusted these results to reflect the fee
and expense structure in effect for Separate Account A as a unit investment
trust. See "The reorganization" in the SAI for additional information.
EQ Advisors Trust commenced operations on May 1, 1997. For periods prior to
October 18, 1999 the Alliance portfolios (other than EQ/Alliance Premier Growth
and EQ/Alliance Technology) were part of The Hudson River Trust. On October 18,
1999, those portfolios became corresponding portfolios of EQ Advisors Trust. In
each case, the performance shown is for the indicated EQ Advisors Trust
portfolio and any predecessors that it may have had.
AXA Premier VIP Trust commenced operations on December 31, 2001 and performance
information for these portfolios is not available as of the date of this
prospectus.
All rates of return presented are time-weighted and include reinvestment of
investment income, including interest and dividends.
THE PERFORMANCE INFORMATION SHOWN BELOW AND THE PERFORMANCE INFORMATION THAT WE
ADVERTISE REFLECT PAST PERFORMANCE AND DO NOT INDICATE HOW THE VARIABLE
INVESTMENT OPTIONS MAY PERFORM IN THE FUTURE. SUCH INFORMATION ALSO DOES NOT
REPRESENT THE RESULTS EARNED BY ANY PARTICULAR INVESTOR. YOUR RESULTS WILL
DIFFER.
Investment performance 57
TABLE
AVERAGE ANNUAL TOTAL RETURN UNDER A CONTRACT SURRENDERED ON DECEMBER 31, 2001:
- -------------------------------------------------------------------------------------------------------
LENGTH OF OPTION PERIOD
------------------------------------------------------
SINCE OPTION
VARIABLE INVESTMENT OPTIONS 1 YEAR 5 YEARS 10 YEARS INCEPTION+*
- -------------------------------------------------------------------------------------------------------
EQ/Aggressive Stock (29.90)% (7.14)% 0.89% 8.27%
- -------------------------------------------------------------------------------------------------------
EQ/Alliance Common Stock (16.38)% 6.29% 9.92% 12.18%
- -------------------------------------------------------------------------------------------------------
EQ/Alliance Global (25.30)% 0.19% -- 4.19%
- -------------------------------------------------------------------------------------------------------
EQ/Alliance Growth and Income (7.76)% 10.74% -- 11.34%
- -------------------------------------------------------------------------------------------------------
EQ/Alliance Growth Investors (18.14)% 3.66% -- 5.99%
- -------------------------------------------------------------------------------------------------------
EQ/Alliance Intermediate Government Securities 1.08% 2.16% -- 2.64%
- -------------------------------------------------------------------------------------------------------
EQ/Alliance International (28.14)% (6.77)% -- (3.53)%
- -------------------------------------------------------------------------------------------------------
EQ/Alliance Money Market (2.97)% 0.89% 0.96% 3.50%
- -------------------------------------------------------------------------------------------------------
EQ/Alliance Premier Growth (28.76)% -- -- (17.17)%
- -------------------------------------------------------------------------------------------------------
EQ/Alliance Quality Bond 1.20% 2.78% -- 2.90%
- -------------------------------------------------------------------------------------------------------
EQ/Alliance Small Cap Growth (18.71)% -- -- 3.10%
- -------------------------------------------------------------------------------------------------------
EQ/Alliance Technology (29.21)% -- -- (30.63)%
- -------------------------------------------------------------------------------------------------------
EQ/AXP New Dimensions (20.85)% -- -- (27.09)%
- -------------------------------------------------------------------------------------------------------
EQ/AXP Strategy Aggressive (37.67)% -- -- (50.88)%
- -------------------------------------------------------------------------------------------------------
EQ/Balanced (8.28)% 5.25% 4.08% 7.08%
- -------------------------------------------------------------------------------------------------------
EQ/Bernstein Diversified Value (3.41)% -- -- (4.73)%
- -------------------------------------------------------------------------------------------------------
EQ/Calvert Socially Responsible -- -- -- 1.60%
- -------------------------------------------------------------------------------------------------------
EQ/Capital Guardian International (25.88)% -- -- (3.06)%
- -------------------------------------------------------------------------------------------------------
EQ/Capital Guardian Research (8.20)% -- -- 0.21%
- -------------------------------------------------------------------------------------------------------
EQ/Capital Guardian U.S. Equity (8.19)% -- -- (2.59)%
- -------------------------------------------------------------------------------------------------------
EQ/Emerging Markets Equity (11.14)% -- -- (14.21)%
- -------------------------------------------------------------------------------------------------------
EQ/Equity 500 Index (17.71)% 6.54% -- 11.54%
- -------------------------------------------------------------------------------------------------------
EQ/Evergreen Omega (22.25)% -- -- (14.41)%
- -------------------------------------------------------------------------------------------------------
EQ/FI Mid Cap (18.88)% -- -- (14.51)%
- -------------------------------------------------------------------------------------------------------
EQ/FI Small/Mid Cap Value (2.57)% -- -- (1.93)%
- -------------------------------------------------------------------------------------------------------
EQ/High Yield (5.66)% (4.36)% -- 1.30%
- -------------------------------------------------------------------------------------------------------
EQ/Janus Large Cap Growth (27.82)% -- -- (31.30)%
- -------------------------------------------------------------------------------------------------------
EQ/Lazard Small Cap Value 10.31% -- -- (3.36)%
- -------------------------------------------------------------------------------------------------------
EQ/Mercury Basic Value Equity (1.13)% -- -- 8.56%
- -------------------------------------------------------------------------------------------------------
EQ/MFS Emerging Growth Companies (38.21)% -- -- 4.15%
- -------------------------------------------------------------------------------------------------------
EQ/MFS Investors Trust (21.28)% -- -- (9.71)%
- -------------------------------------------------------------------------------------------------------
EQ/MFS Research (26.75)% -- -- 0.74%
- -------------------------------------------------------------------------------------------------------
EQ/Putnam Growth & Income Value (12.69)% -- -- 0.32%
- -------------------------------------------------------------------------------------------------------
EQ/Putnam International Equity (26.48)% -- -- (2.89)%
- -------------------------------------------------------------------------------------------------------
EQ/Putnam Voyager (29.23)% -- -- (2.99)%
- -------------------------------------------------------------------------------------------------------
- -------------------------------------------------------------------------------------------------------
LENGTH OF PORTFOLIO PERIOD
-----------------------------------------------------
SINCE
PORTFOLIO
VARIABLE INVESTMENT OPTIONS 3 YEARS 5 YEARS 10 YEARS INCEPTION+**
- -------------------------------------------------------------------------------------------------------
EQ/Aggressive Stock (12.32)% (7.14)% 0.89% 8.27%
- -------------------------------------------------------------------------------------------------------
EQ/Alliance Common Stock (5.45)% 6.29% 9.92% 9.13%
- -------------------------------------------------------------------------------------------------------
EQ/Alliance Global (7.62)% 0.19% 5.72% 5.74%
- -------------------------------------------------------------------------------------------------------
EQ/Alliance Growth and Income 4.15% 10.74% -- 10.46%
- -------------------------------------------------------------------------------------------------------
EQ/Alliance Growth Investors (3.10)% 3.66% 5.99% 9.33%
- -------------------------------------------------------------------------------------------------------
EQ/Alliance Intermediate Government Securities 1.45% 2.16% 2.37% 3.12%
- -------------------------------------------------------------------------------------------------------
EQ/Alliance International (10.71)% (6.77)% -- (2.48)%
- -------------------------------------------------------------------------------------------------------
EQ/Alliance Money Market 0.74% 0.89% 0.96% 3.50%
- -------------------------------------------------------------------------------------------------------
EQ/Alliance Premier Growth -- -- -- (14.92)%
- -------------------------------------------------------------------------------------------------------
EQ/Alliance Quality Bond 1.49% 2.78% -- 2.25%
- -------------------------------------------------------------------------------------------------------
EQ/Alliance Small Cap Growth 3.91% -- -- 5.60%
- -------------------------------------------------------------------------------------------------------
EQ/Alliance Technology -- -- -- (28.01)%
- -------------------------------------------------------------------------------------------------------
EQ/AXP New Dimensions -- -- -- (27.09)%
- -------------------------------------------------------------------------------------------------------
EQ/AXP Strategy Aggressive -- -- -- (50.88)%
- -------------------------------------------------------------------------------------------------------
EQ/Balanced 0.21% 5.25% 4.08% 7.08%
- -------------------------------------------------------------------------------------------------------
EQ/Bernstein Diversified Value (2.46)% -- -- 1.74%
- -------------------------------------------------------------------------------------------------------
EQ/Calvert Socially Responsible -- -- -- (9.25)%
- -------------------------------------------------------------------------------------------------------
EQ/Capital Guardian International -- -- -- (8.05)%
- -------------------------------------------------------------------------------------------------------
EQ/Capital Guardian Research -- -- -- (0.31)%
- -------------------------------------------------------------------------------------------------------
EQ/Capital Guardian U.S. Equity -- -- -- (2.37)%
- -------------------------------------------------------------------------------------------------------
EQ/Emerging Markets Equity (0.38)% -- -- (14.21)%
- -------------------------------------------------------------------------------------------------------
EQ/Equity 500 Index (5.61)% 6.54% -- 10.99%
- -------------------------------------------------------------------------------------------------------
EQ/Evergreen Omega -- -- -- (10.94)%
- -------------------------------------------------------------------------------------------------------
EQ/FI Mid Cap -- -- -- (14.51)%
- -------------------------------------------------------------------------------------------------------
EQ/FI Small/Mid Cap Value (0.37)% -- -- (0.41)%
- -------------------------------------------------------------------------------------------------------
EQ/High Yield (7.95)% (4.36)% 3.98% 4.28%
- -------------------------------------------------------------------------------------------------------
EQ/Janus Large Cap Growth -- -- -- (31.30)%
- -------------------------------------------------------------------------------------------------------
EQ/Lazard Small Cap Value 8.50% -- -- 3.03%
- -------------------------------------------------------------------------------------------------------
EQ/Mercury Basic Value Equity 8.05% -- -- 10.20%
- -------------------------------------------------------------------------------------------------------
EQ/MFS Emerging Growth Companies (6.36)% -- -- 6.13%
- -------------------------------------------------------------------------------------------------------
EQ/MFS Investors Trust -- -- -- (7.14)%
- -------------------------------------------------------------------------------------------------------
EQ/MFS Research (6.98)% -- -- 2.17%
- -------------------------------------------------------------------------------------------------------
EQ/Putnam Growth & Income Value (4.59)% -- -- 1.47%
- -------------------------------------------------------------------------------------------------------
EQ/Putnam International Equity (0.69)% -- -- 4.36%
- -------------------------------------------------------------------------------------------------------
EQ/Putnam Voyager (10.75)% -- -- 3.07%
- -------------------------------------------------------------------------------------------------------
+ Unannualized (including Since Inception values if time since inception is
less than one year)
* The variable investment option inception dates are: EQ/Aggressive Stock and
EQ/Balanced (1/27/86); EQ/Alliance Money Market (7/31/81); EQ/Alliance
Common Stock (8/27/81); EQ/Equity 500 Index (6/1/94); EQ/Alliance Global,
EQ/Alliance Growth and Income, EQ/Alliance Growth Investors, EQ/Alliance
High Yield and EQ/Alliance Quality Bond (1/4/94); EQ/Alliance Intermediate
Government Securities (6/1/94); EQ/Alliance International (9/1/95);
EQ/Alliance Small Cap Growth, EQ/MFS Emerging Growth Companies, EQ/MFS
Research, EQ/Mercury Basic Value Equity, EQ/Putnam Growth & Income Value,
EQ/FI Small/Mid Cap Value (6/2/97); EQ/Emerging Markets Equity (8/20/97);
EQ/Evergreen Omega, EQ/MFS Investors Trust, EQ/Alliance Premier Growth,
EQ/Capital Guardian U.S. Equity, EQ/Capital Guardian International,
EQ/Capital Guardian Research, EQ/Bernstein Diversified Value, EQ/Lazard
Small Cap Value, EQ/Putnam International Equity, EQ/Putnam Voyager (8/30/99);
EQ/Calvert Socially Responsible (9/1/99); EQ/Alliance Technology (5/22/00);
EQ/Janus Large Cap Growth, EQ/FI Mid Cap, EQ/AXP New Dimensions and EQ/AXP
Strategy Aggressive (9/1/00); EQ/Marsico Focus (10/22/01); AXA Premier VIP
Large Cap Growth, AXA Premier VIP Large Cap Core Equity, AXA Premier VIP
Large Cap Value, AXA Premier VIP Small/Mid Cap Growth, AXA Premier VIP
Small/Mid Cap Value, AXA Premier VIP International Equity, AXA Premier VIP
Technology, AXA Premier VIP Health Care, AXA Premier VIP Core Bond,
EQ/International Equity Index, EQ/J.P. Morgan Core Bond and EQ/Small Company
Index (January 14, 2002). No performance information is provided for
portfolios and/or variable investment options with inception dates after
December 31, 2000.
** The inception dates for the portfolios underlying the Alliance variable
investment options shown in the tables are for portfolios of The Hudson
River Trust, the assets of which became assets of corresponding portfolios
of EQ Advisors Trust on 10/18/99. The portfolio inception dates are:
EQ/Aggressive Stock and EQ/Balanced (1/27/86); EQ/Alliance Common Stock
(1/13/76); EQ/Equity 500 Index (3/1/94); EQ/Alliance Global (8/27/87);
EQ/Alliance Growth and Income (10/1/93); EQ/Alliance Growth Investors
(10/2/89); EQ/High Yield (1/2/87); EQ/Alliance Intermediate Government
Securities (4/1/91); EQ/Alliance International (4/3/95); EQ/Alliance Money
Market (7/13/81); EQ/Alliance Quality Bond (10/1/93); EQ/Alliance Small Cap
Growth, EQ/MFS Research, EQ/Mercury Basic Value Equity, EQ/Putnam Growth &
Income Value, EQ/FI Small/Mid Cap Value, EQ/Putnam International Equity and
EQ/Putnam Voyager (5/1/97); EQ/Emerging Markets Equity (8/20/97);
EQ/Evergreen Omega and EQ/MFS Investors Trust (1/1/99); EQ/Bernstein
Diversified Value, EQ/International Equity Index, EQ/J.P. Morgan Core Bond,
EQ/Lazard Small Cap Value and EQ/Small Company Index (1/1/98); EQ/MFS
Emerging Growth Companies (5/1/97); EQ/Alliance Premier
58 Investment performance
Growth, EQ/Capital Guardian International, EQ/Capital Guardian Research and
EQ/Capital Guardian U.S. Equity (5/1/99); EQ/Calvert Socially Responsible
(9/1/ 99); EQ/Alliance Technology (5/1/00); EQ/Janus Large Cap Growth, EQ/FI
Mid Cap, EQ/AXP New Dimensions and EQ/AXP Strategy Aggressive (9/1/00);
EQ/Marsico Focus (August 31, 2001); AXA Premier VIP Large Cap Growth, AXA
Premier VIP Large Cap Core Equity, AXA Premier VIP Large Cap Value, AXA
Premier VIP Small/Mid Cap Growth, AXA Premier VIP Small/Mid Cap Value, AXA
Premier VIP International Equity, AXA Premier VIP Healthcare, AXA Premier
VIP Core Bond and AXA Premier VIP Technology (December 31, 2001). No
performance information is provided for portfolios and/or variable
investment options with inception dates after December 31, 2000.
Investment performance 59
COMMUNICATING PERFORMANCE DATA
In reports or other communications to contract owners or in advertising
material, we may describe general economic and market conditions affecting our
variable investment options, and the portfolios and may compare the performance
or ranking of those options and the portfolios with:
o those of other insurance company separate accounts or mutual funds included
in the rankings prepared by Lipper Analytical Services, Inc., Morningstar,
Inc., VARDS, or similar investment services that monitor the performance
of insurance company separate accounts or mutual funds;
o other appropriate indices of investment securities and averages for peer
universes of mutual funds; or
o data developed by us derived from such indices or averages.
We also may furnish to present or prospective contract owners advertisements or
other communications that include evaluations of a variable investment option
or portfolio by nationally recognized financial publications. Examples of such
publications are:
- --------------------------------------------------------------------------------
Barron's
Morningstar's Variable Annuity
Sourcebook
Business Week
Forbes
Fortune
Institutional Investor
Money
Kiplinger's Personal Finance
Financial Planning
Investment Management Weekly
Money Management Letter
Investment Dealers Digest
National Underwriter
Pension & Investments
USA Today
Investor's Business Daily
The New York Times
The Wall Street Journal
The Los Angeles Times
The Chicago Tribune
- --------------------------------------------------------------------------------
From time to time we may also advertise different measurements of the
investment performance of the variable investment options and/or the
portfolios, including the measurements that compare the performance to market
indices that serve as benchmarks. Market indices are not subject to any charges
for investment advisory fees, brokerage commission or other operating expenses
typically associated with a managed portfolio. Also, they do not reflect other
contract charges such as the mortality and expense risks charge, administrative
charge or any withdrawal or optional benefit charge. Comparisons with these
benchmarks therefore may be of limited use. We use them because they are widely
known and may help you to understand the universe of securities from which each
portfolio is likely to select its holdings.
Lipper compiles performance data for peer universes of funds with similar
investment objectives in its Lipper Survey. Morningstar, Inc. compiles similar
data in the Morningstar Variable Annuity/Life Report (Morningstar Report).
The Lipper Survey records performance data as reported to it by over 800 mutual
funds underlying variable annuity and life insurance products. It divides these
actively managed portfolios into 25 categories by portfolio objectives.
According to Lipper, the data are presented net of investment management fees,
direct operating expenses and asset-based charges applicable under annuity
contracts. Lipper data provide a more accurate picture than market benchmarks
of the EQUI-VEST(R) performance relative to other variable annuity products .
The Lipper Survey contains two different universes, which reflect different
types of fees in performance data:
o The "separate account" universe reports performance data net of investment
management fees, direct operating expenses and asset-based charges
applicable under variable life and annuity contracts; and
o The "mutual fund" universe reports performance net only of investment
management fees and direct operating expenses, and therefore reflects only
charges that relate to the underlying mutual fund.
The Morningstar Variable Annuity/Life Report consists of nearly 700 variable
life and annuity funds, all of which report their data net of investment
management fees, direct operating expenses and separate account level charges.
VARDS is a monthly reporting service that monitors approximately 2,500 variable
life and variable annuity funds on performance and account information.
YIELD INFORMATION
Current yield for the EQ/Alliance Money Market option will be based on net
changes in a hypothetical investment over a given seven-day period, exclusive
of capital changes, and then "annualized" (assuming that the same seven-day
result would occur each week for 52 weeks). Current yield for the EQ/Alliance
Quality Bond and EQ/High Yield options will be based on net changes in a
hypothetical investment over a given 30-day period, exclusive of capital
changes, and then "annualized" (assuming that the same 30-day result would
occur each month for 12 months).
"Effective yield" is calculated in a similar manner, but when annualized, any
income earned by the investment is assumed to be reinvested. The "effective
yield" will be slightly higher than the "current yield" because any earnings
are compounded weekly for the EQ/Alliance Money Market option. The current
yields and effective yields assume the deduction of all current contract
charges and expenses other than the withdrawal charge, the annual
administrative charge, optional ratcheted death benefit charge, and any charge
designed to approximate certain taxes that may be imposed on us, such as
premium taxes in your state. For more information, see "EQ/Alliance Money
Market Option yield information" and "Other yield information" in the SAI.
60 Investment performance
10. Incorporation of certain documents by reference
- --------------------------------------------------------------------------------
Equitable Life's Annual Report on Form 10-K for the year ended December 31,
2001, is considered to be a part of this prospectus because it is incorporated
by reference.
After the date of this prospectus and before we terminate the offering of the
securities under this prospectus, all documents or reports we file with the SEC
under the Securities Exchange Act of 1934 ("Exchange Act"), will be considered
to become part of this prospectus because they are incorporated by reference.
Any statement contained in a document that is or becomes part of this
prospectus, will be considered changed or replaced for purposes of this
prospectus if a statement contained in this prospectus changes or is replaced.
Any statement that is considered to be a part of this prospectus because of its
incorporation, will be considered changed or replaced for the purpose of this
prospectus if a statement contained in any other subsequently filed document
that is considered to be part of this prospectus changes or replaces that
statement. After that, only the statement that is changed or replaced will be
considered to be part of this prospectus.
We file our Exchange Act documents and reports, including our Annual Report on
Form 10-K and Quarterly Reports on Form 10-Q, electronically according to EDGAR
under CIK No. 0000727920. The SEC maintains a Web site that contains reports,
proxy and information statements and other information regarding registrants
that file electronically with the SEC. The address of the site is
http://www.sec.gov.
Upon written or oral request, we will provide, free of charge, to each person
to whom this prospectus is delivered a copy of any or all of the documents
considered to be part of this prospectus because they are incorporated herein.
This does not include exhibits not specifically incorporated by reference into
the text of such documents. Requests for documents should be directed to The
Equitable Life Assurance Society of the United States, 1290 Avenue of the
Americas, New York, New York 10104. Attention: Corporate Secretary (telephone:
(212) 554-1234).
Incorporation of certain documents by reference 61
Appendix I: Condensed financial information
- --------------------------------------------------------------------------------
The unit values and number of units outstanding shown below, as of December 31,
2001, are for contracts offered under Separate Account A with the same asset
based charge of 1.20%.
SERIES 800 CONTRACTS
UNIT VALUES AND NUMBER OF UNITS OUTSTANDING AT YEAR END FOR EACH VARIABLE
INVESTMENT OPTION, EXCEPT FOR THOSE OPTIONS BEING OFFERED FOR THE FIRST TIME
AFTER DECEMBER 31, 2001
- ---------------------------------------------------------------------------------------------------
FOR THE YEARS ENDING DECEMBER 31,
1998 1999 2000 2001
- ---------------------------------------------------------------------------------------------------
EQ/AGGRESSIVE STOCK
- ---------------------------------------------------------------------------------------------------
Unit value $ 90.25 $ 105.70 $ 90.50 $ 66.90
- ---------------------------------------------------------------------------------------------------
Number of units outstanding (000's) -- 17 71 100
- ---------------------------------------------------------------------------------------------------
EQ/ALLIANCE COMMON STOCK
- ---------------------------------------------------------------------------------------------------
Unit value $ 102.87 $ 126.92 $ 107.54 $ 94.83
- ---------------------------------------------------------------------------------------------------
Number of units outstanding (000's) -- 105 702 944
- ---------------------------------------------------------------------------------------------------
EQ/ALLIANCE GLOBAL
- ---------------------------------------------------------------------------------------------------
Unit value $ 98.37 $ 134.29 $ 107.66 $ 84.81
- ---------------------------------------------------------------------------------------------------
Number of units outstanding (000's) -- 20 181 235
- ---------------------------------------------------------------------------------------------------
EQ/ALLIANCE GROWTH AND INCOME
- ---------------------------------------------------------------------------------------------------
Unit value $ 102.73 $ 120.14 $ 129.01 $ 125.48
- ---------------------------------------------------------------------------------------------------
Number of units outstanding (000's) -- 37 262 526
- ---------------------------------------------------------------------------------------------------
EQ/ALLIANCE GROWTH INVESTORS
- ---------------------------------------------------------------------------------------------------
Unit value $ 101.93 $ 127.17 $ 116.93 $ 100.93
- ---------------------------------------------------------------------------------------------------
Number of units outstanding (000's) -- 21 222 280
- ---------------------------------------------------------------------------------------------------
EQ/ALLIANCE INTERMEDIATE GOVERNMENT SECURITIES
- ---------------------------------------------------------------------------------------------------
Unit value $ 103.32 $ 101.97 $ 109.71 $ 116.93
- ---------------------------------------------------------------------------------------------------
Number of units outstanding (000's) -- 1 16 112
- ---------------------------------------------------------------------------------------------------
EQ/ALLIANCE INTERNATIONAL
- ---------------------------------------------------------------------------------------------------
Unit value $ 93.00 $ 126.30 $ 95.90 $ 72.66
- ---------------------------------------------------------------------------------------------------
Number of units outstanding (000's) -- 3 36 45
- ---------------------------------------------------------------------------------------------------
EQ/ALLIANCE MONEY MARKET
- ---------------------------------------------------------------------------------------------------
Unit value $ 101.68 $ 105.21 $ 110.19 $ 112.74
- ---------------------------------------------------------------------------------------------------
Number of units outstanding (000's) -- 17 57 125
- ---------------------------------------------------------------------------------------------------
EQ/ALLIANCE PREMIER GROWTH
- ---------------------------------------------------------------------------------------------------
Unit value -- $ 116.42 $ 93.88 $ 70.52
- ---------------------------------------------------------------------------------------------------
Number of units outstanding (000's) -- 36 350 438
- ---------------------------------------------------------------------------------------------------
EQ/ALLIANCE QUALITY BOND
- ---------------------------------------------------------------------------------------------------
Unit value $ 103.62 $ 100.07 $ 110.03 $ 117.42
- ---------------------------------------------------------------------------------------------------
Number of units outstanding (000's) -- 4 27 112
- ---------------------------------------------------------------------------------------------------
EQ/ALLIANCE SMALL CAP GROWTH
- ---------------------------------------------------------------------------------------------------
Unit value $ 86.94 $ 109.62 $ 123.09 $ 105.51
- ---------------------------------------------------------------------------------------------------
Number of units outstanding (000's) -- 2 98 166
- ---------------------------------------------------------------------------------------------------
EQ/ALLIANCE TECHNOLOGY
- ---------------------------------------------------------------------------------------------------
Unit value -- -- $ 66.17 $ 49.39
- ---------------------------------------------------------------------------------------------------
Number of units outstanding (000's) -- -- 128 196
- ---------------------------------------------------------------------------------------------------
EQ/AXP NEW DIMENSIONS
- ---------------------------------------------------------------------------------------------------
Unit value -- -- $ 82.91 $ 69.20
- ---------------------------------------------------------------------------------------------------
Number of units outstanding (000's) -- -- 2 14
- ---------------------------------------------------------------------------------------------------
EQ/AXP STRATEGY AGGRESSIVE
- ---------------------------------------------------------------------------------------------------
Unit value -- -- $ 62.15 $ 40.85
- ---------------------------------------------------------------------------------------------------
Number of units outstanding (000's) -- -- 2 24
- ---------------------------------------------------------------------------------------------------
Appendix I: Condensed financial information A-1
SERIES 800 CONTRACTS (CONTINUED)
UNIT VALUES AND NUMBER OF UNITS OUTSTANDING AT YEAR END FOR EACH VARIABLE
INVESTMENT OPTION, EXCEPT FOR THOSE OPTIONS BEING OFFERED FOR THE FIRST TIME
AFTER DECEMBER 31, 2001 (CONTINUED)
- ---------------------------------------------------------------------------------------------------
FOR THE YEARS ENDING DECEMBER 31,
1998 1999 2000 2001
- ---------------------------------------------------------------------------------------------------
EQ/BALANCED
- ---------------------------------------------------------------------------------------------------
Unit value $ 102.39 $ 118.86 $ 115.59 $ 111.79
- ---------------------------------------------------------------------------------------------------
Number of units outstanding (000's) -- 11 101 287
- ---------------------------------------------------------------------------------------------------
EQ/BERNSTEIN DIVERSIFIED VALUE
- ---------------------------------------------------------------------------------------------------
Unit value -- -- -- $ 94.71
- ---------------------------------------------------------------------------------------------------
Number of units outstanding (000's) -- -- -- 71
- ---------------------------------------------------------------------------------------------------
EQ/CALVERT SOCIALLY RESPONSIBLE
- ---------------------------------------------------------------------------------------------------
Unit value -- $ 107.64 $ 103.26 $ 87.02
- ---------------------------------------------------------------------------------------------------
Number of units outstanding (000's) -- -- -- --
- ---------------------------------------------------------------------------------------------------
EQ/CAPITAL GUARDIAN RESEARCH
- ---------------------------------------------------------------------------------------------------
Unit value -- $ 106.84 $ 111.80 $ 108.22
- ---------------------------------------------------------------------------------------------------
Number of units outstanding (000's) -- 1 9 31
- ---------------------------------------------------------------------------------------------------
EQ/CAPITAL GUARDIAN U.S. EQUITY
- ---------------------------------------------------------------------------------------------------
Unit value -- $ 101.69 $ 104.08 $ 100.76
- ---------------------------------------------------------------------------------------------------
Number of units outstanding (000's) -- 1 11 21
- ---------------------------------------------------------------------------------------------------
EQ/EMERGING MARKETS EQUITY
- ---------------------------------------------------------------------------------------------------
Unit value $ 81.49 $ 157.61 $ 93.36 $ 87.48
- ---------------------------------------------------------------------------------------------------
Number of units outstanding (000's) -- 5 42 44
- ---------------------------------------------------------------------------------------------------
EQ/EQUITY 500 INDEX
- ---------------------------------------------------------------------------------------------------
Unit value $ 103.69 $ 123.02 $ 109.63 $ 95.13
- ---------------------------------------------------------------------------------------------------
Number of units outstanding (000's) -- 50 258 367
- ---------------------------------------------------------------------------------------------------
EQ/EVERGREEN OMEGA
- ---------------------------------------------------------------------------------------------------
Unit value -- $ 106.63 $ 93.02 $ 76.26
- ---------------------------------------------------------------------------------------------------
Number of units outstanding (000's) -- -- 3 10
- ---------------------------------------------------------------------------------------------------
EQ/FI MID CAP
- ---------------------------------------------------------------------------------------------------
Unit value -- -- $ 100.02 $ 85.57
- ---------------------------------------------------------------------------------------------------
Number of units outstanding (000's) -- -- 9 106
- ---------------------------------------------------------------------------------------------------
EQ/FI SMALL/MID CAP VALUE
- ---------------------------------------------------------------------------------------------------
Unit value $ 82.88 $ 83.36 $ 86.60 $ 88.97
- ---------------------------------------------------------------------------------------------------
Number of units outstanding (000's) -- 1 14 126
- ---------------------------------------------------------------------------------------------------
EQ/HIGH YIELD
- ---------------------------------------------------------------------------------------------------
Unit value $ 89.20 $ 84.97 $ 78.49 $ 76.09
- ---------------------------------------------------------------------------------------------------
Number of units outstanding (000's) -- 5 28 49
- ---------------------------------------------------------------------------------------------------
EQ/JANUS LARGE CAP GROWTH
- ---------------------------------------------------------------------------------------------------
Unit value -- -- $ 83.99 $ 63.92
- ---------------------------------------------------------------------------------------------------
Number of units outstanding (000's) -- -- 12 119
- ---------------------------------------------------------------------------------------------------
EQ/MARSICO FOCUS
- ---------------------------------------------------------------------------------------------------
Unit value -- -- -- $ 105.94
- ---------------------------------------------------------------------------------------------------
Number of units outstanding (000's) -- -- -- --
- ---------------------------------------------------------------------------------------------------
EQ/MERCURY BASIC VALUE EQUITY
- ---------------------------------------------------------------------------------------------------
Unit value $ 97.91 $ 115.06 $ 127.11 $ 132.52
- ---------------------------------------------------------------------------------------------------
Number of units outstanding (000's) -- 7 41 119
- ---------------------------------------------------------------------------------------------------
EQ/MFS EMERGING GROWTH COMPANIES
- ---------------------------------------------------------------------------------------------------
Unit value $ 103.53 $ 177.65 $ 142.46 $ 92.82
- ---------------------------------------------------------------------------------------------------
Number of units outstanding (000's) -- 36 288 316
- ---------------------------------------------------------------------------------------------------
EQ/MFS INVESTORS TRUST
- ---------------------------------------------------------------------------------------------------
Unit value -- $ 104.53 $ 102.57 $ 85.14
- ---------------------------------------------------------------------------------------------------
Number of units outstanding (000's) -- 2 17 21
- ---------------------------------------------------------------------------------------------------
EQ/MFS RESEARCH
- ---------------------------------------------------------------------------------------------------
Unit value $ 99.10 $ 120.55 $ 112.84 $ 87.16
- ---------------------------------------------------------------------------------------------------
Number of units outstanding (000's) -- 6 84 100
- ---------------------------------------------------------------------------------------------------
A-2 Appendix I: Condensed financial information
SERIES 800 CONTRACTS (CONTINUED)
UNIT VALUES AND NUMBER OF UNITS OUTSTANDING AT YEAR END FOR EACH VARIABLE
INVESTMENT OPTION, EXCEPT FOR THOSE OPTIONS BEING OFFERED FOR THE FIRST TIME
AFTER DECEMBER 31, 2001 (CONTINUED)
- ---------------------------------------------------------------------------------------------------
FOR THE YEARS ENDING DECEMBER 31,
1998 1999 2000 2001
- ---------------------------------------------------------------------------------------------------
EQ/PUTNAM GROWTH & INCOME VALUE
- ---------------------------------------------------------------------------------------------------
Unit value $ 100.60 $ 98.04 $ 103.43 $ 95.23
- ---------------------------------------------------------------------------------------------------
Number of units outstanding (000's) -- 3 17 32
- ---------------------------------------------------------------------------------------------------
EQ/T. ROWE PRICE INTERNATIONAL STOCK
- ---------------------------------------------------------------------------------------------------
Unit value $ 94.15 $ 122.67 $ 98.56 $ 76.12
- ---------------------------------------------------------------------------------------------------
Number of units outstanding (000's) -- 3 42 65
- ---------------------------------------------------------------------------------------------------
Appendix I: Condensed financial information A-3
(This page intentionally left blank)
Appendix II: Market value adjustment example
- --------------------------------------------------------------------------------
The example below shows how the market value adjustment would be determined and
how it would be applied to a withdrawal, assuming that $100,000 had been
invested on June 15, 2003 to a fixed maturity option with a maturity date of
June 15, 2012 (i.e., nine years later) at a hypothetical rate to maturity of
7.00%, resulting in a maturity value at the maturity date of $183,846. We
further assume that a withdrawal of $50,000 is made four years later, on June
15, 2007.
- -------------------------------------------------------------------------------------
HYPOTHETICAL ASSUMED
RATE TO MATURITY
ON JUNE 15, 2007
5.00% 9.00%
- -------------------------------------------------------------------------------------
AS OF JUNE 15, 2007 (BEFORE WITHDRAWAL)
- -------------------------------------------------------------------------------------
(1) Market adjusted amount $144,048 $ 119,487
- -------------------------------------------------------------------------------------
(2) Fixed maturity amount $131,080 $ 131,080
- -------------------------------------------------------------------------------------
(3) Market value adjustment: (1) - (2) $ 12,968 $ (11,593)
- -------------------------------------------------------------------------------------
ON JUNE 15, 2007 (AFTER WITHDRAWAL)
- -------------------------------------------------------------------------------------
(4) Portion of market value adjustment associated with
withdrawal: (3) x $50,000/(1)] $ 4,501 $ (4,851)
- -------------------------------------------------------------------------------------
(5) Reduction in fixed maturity amount [$50,000 - (4)] $ 45,499 $ 54,851
- -------------------------------------------------------------------------------------
(6) Fixed maturity amount (2) - (5) $ 85,581 $ 76,229
- -------------------------------------------------------------------------------------
(7) Maturity value $120,032 $ 106,915
- -------------------------------------------------------------------------------------
(8) Market adjusted amount of (7) $ 94,048 $ 69,487
- -------------------------------------------------------------------------------------
You should note that under this example if a withdrawal is made when rates have
increased from 7.00% to 9.00% (right column), a negative market value
adjustment is realized. On the other hand, if a withdrawal is made when rates
have decreased from 7.00% to 5.00% (left column), a positive market value
adjustment is realized.
Appendix II: Market value adjustment example B-1
(This page intentionally left blank)
Appendix III: Death benefit example
- --------------------------------------------------------------------------------
If you do not elect the optional ratcheted death benefit, the death benefit is
equal to the account value or the minimum death benefit (contributions, less
withdrawals, and any withdrawal charges and taxes that may apply), whichever
provides the highest amount. If you elect the ratcheted death benefit, the
death benefit is equal to the account value or the ratcheted death benefit,
whichever provides the highest amount.
The following illustrates the death benefit calculation. Assuming $100,000 is
allocated to the variable investment options, no additional contributions, no
transfers and no withdrawals, the death benefit for an annuitant age 45 would
be calculated as follows:
- -------------------------------------------------------------------------------------------------
END OF CONTRACT YEAR ACCOUNT VALUE(1) CONTRIBUTION RATCHETED DEATH BENEFIT
- -------------------------------------------------------------------------------------------------
1 $ 105,000(2) $100,000 $ 100,000
- -------------------------------------------------------------------------------------------------
2 $ 115,500(2) $ 100,000
- -------------------------------------------------------------------------------------------------
3 $ 129,360(2) $ 129,360 (2)
- -------------------------------------------------------------------------------------------------
4 $ 103,488 $ 129,360(3)
- -------------------------------------------------------------------------------------------------
5 $ 113,837 $ 129,360 (3)
- -------------------------------------------------------------------------------------------------
6 $ 127,497 $ 129,360(3)
- -------------------------------------------------------------------------------------------------
7 $ 127,497 $ 129,360 (3)
- -------------------------------------------------------------------------------------------------
8 $ 133,872(2) $ 129,360
- -------------------------------------------------------------------------------------------------
9 $ 147,259 $ 147,259 (4)
- -------------------------------------------------------------------------------------------------
The account values for contract years 1 through 9 are based on hypothetical
rates of return of 5.00%, 10.00%, 12.00%, (20.00)%, 10.00%, 12.00%, 0.00%, 5%
and 10%. We are using these rates solely to illustrate how the benefit is
determined. The return rates bear no relationship to past or future investment
results.
(1) If the optional ratcheted death benefit was not elected, the death benefit
on each contract date anniversary would be equal to the account value,
since it is higher than the contribution.
(2) If the optional ratcheted death benefit was elected at the end of contract
years 1, 2, 3 and 8, the death benefit will be equal to the account value.
Also in year 3, the ratcheted death benefit is increased to equal the
account value.
(3) At the end of contract years 4, 5, 6 and 7, the death benefit would be
equal to the ratcheted death benefit since it is higher than the account
value. Also, at the end of contract year six, no adjustment would be made
to the ratcheted death benefit, since the ratcheted death benefit is
higher than the account value.
(4) At the end of contract year 9, the ratcheted death benefit would be
increased to the account value, since the account value on the contract
date anniversary is higher than the current ratcheted death benefit.
Appendix III: Death benefit example C-1
(This page intentionally left blank)
Statement of additional information
- --------------------------------------------------------------------------------
TABLE OF CONTENTS
Page
Unit Values 2
Calculation of Annuity Payments 2
The Reorganization 3
Custodian and Independent Accountants 3
EQ/Alliance Money Market Option Yield Information 4
Other Yield Information 4
Distribution of the Contracts 5
Financial Statements 5
HOW TO OBTAIN AN EQUI-VEST(R) STATEMENT OF ADDITIONAL INFORMATION FOR SEPARATE
ACCOUNT A
Call 1-800-628-6673 or send this request form to:
EQUI-VEST(R)
Processing Office
The Equitable Life
P.O. Box 2996
New York, NY 10116-2996
- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
Please send me an EQUI-VEST(R) Statement of Additional Information dated May 1,
2002.
(Combination variable and fixed deferred annuity)
- --------------------------------------------------------------------------------
Name
- --------------------------------------------------------------------------------
Address
- --------------------------------------------------------------------------------
City State Zip
SAI (05/02)
Supplement dated May 1, 2002 to EQUI-VEST(R) Prospectus and EQUI-VEST(R)
Employer-Sponsored Retirement Programs Prospectus
Combination Variable and Fixed Deferred Annuity Certificates Issued By The
Equitable Life Assurance Society of the United States
- --------------------------------------------------------------------------------
This Supplement updates certain information in the most recent prospectus and
statement of additional information you received for any of the products listed
above, and in any Supplements to that prospectus and statement of additional
information. The Appendix sets forth the dates of such prior prospectuses,
statements of additional information and supplements, which, in addition to this
Supplement, should be kept for future reference.
We have filed with the Securities and Exchange Commission (SEC) our statement of
additional information (SAI) dated May 1, 2002. If you do not presently have a
copy of the prospectus and prior supplements, you may obtain additional copies,
as well as a copy of the SAI, from us, free of charge, by writing to Equitable
Life, P.O. Box 2996, New York, NY, 10116-2996, or calling (800) 628-6673. If you
only need a copy of the SAI, you may mail in the SAI request form located at the
end of this supplement. The SAI has been incorporated by reference into this
supplement.
In this Supplement, we provide information on (1) how to reach us; (2) the
combination of certain investment options; (3) investment options; (4) the
Trusts' annual expenses; (5) disruptive transfer activity; (6) minimum
distribution withdrawal; (7) the annual administrative charge; (8) our business
day; (9) payment of death benefit; (10) tax information; (11) beneficiary
continuation option; (12) condensed financial information; (13) Equitable Life;
(14) investment performance; and (15) Variable Immediate Annuity payout options.
X00340
- --------------------------------------------------------------------------------
(1) HOW TO REACH US
You may communicate with our processing office as listed below for the purposes
described. Certain methods of contacting us, such as by telephone or
electronically may be unavailable or delayed (for example our facsimile service
may not be available at all times and/or we may be unavailable due to emergency
closing). In addition, the level and type of service available may be restricted
based on criteria established by us.
FOR EQUI-VEST(R) CONTRACTS:
- --------------------------------------------------------------------------------
FOR NQ AND IRA OWNERS WHO SEND CONTRIBUTIONS INDIVIDUALLY BY REGULAR MAIL:
- --------------------------------------------------------------------------------
Equitable Life
EQUI-VEST(R)
Individual Collections
P.O. Box 13459
Newark, NJ 07188-0459
- --------------------------------------------------------------------------------
FOR NQ AND IRA OWNERS WHO SEND CONTRIBUTIONS INDI-
VIDUALLY BY EXPRESS DELIVERY:
- --------------------------------------------------------------------------------
Equitable Life
c/o Bank One, N.A.
300 Harmon Meadow Boulevard, 3rd Floor
Secaucus, NJ 07094
Attn: Box 13459
- --------------------------------------------------------------------------------
FOR ALL OTHER COMMUNICATIONS (E.G., REQUESTS FOR TRANS-
FERS, WITHDRAWALS, OR REQUIRED NOTICES) SENT BY REGULAR
MAIL:
- --------------------------------------------------------------------------------
Equitable Life
EQUI-VEST(R)
P.O. Box 2996
New York, NY 10116-2996
- --------------------------------------------------------------------------------
FOR ALL OTHER COMMUNICATIONS (E.G., REQUESTS FOR TRANS-
FERS, WITHDRAWALS, OR REQUIRED NOTICES) SENT BY EXPRESS
DELIVERY:
- --------------------------------------------------------------------------------
Equitable Life
EQUI-VEST(R)
200 Plaza Drive, 2nd Floor
Secaucus, NJ 07094
- --------------------------------------------------------------------------------
FOR NQ AND IRA CONTRIBUTIONS REMITTED BY EMPLOYERS
AND SENT BY REGULAR MAIL:
- --------------------------------------------------------------------------------
Equitable Life
EQUI-VEST(R)
Unit Collections
P.O. Box 13463
Newark, New Jersey 07188-0463
- --------------------------------------------------------------------------------
FOR NQ AND IRA CONTRIBUTIONS REMITTED BY EMPLOYERS
AND SENT BY EXPRESS DELIVERY:
- --------------------------------------------------------------------------------
Equitable Life
c/o Bank One, N.A.
300 Harmon Meadow Boulevard, 3rd Floor
Secaucus, NJ 07094
Attn: Box 13463
- --------------------------------------------------------------------------------
FOR EQUI-VEST(R) EMPLOYER-SPONSORED CONTRACTS:
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
FOR CONTRIBUTIONS SENT BY REGULAR MAIL:
- --------------------------------------------------------------------------------
Equitable Life
EQUI-VEST(R)
Unit Collections
P.O. Box 13463
Newark, NJ 07188-0463
- --------------------------------------------------------------------------------
FOR TSA AND CORPORATE TRUSTEED LOAN REPAYMENTS SENT
BY REGULAR MAIL:
- --------------------------------------------------------------------------------
Equitable Life
Loan Repayment
EQUI-VEST(R) Lockbox
P.O. Box 13496
Newark, NJ 07188-0496
- --------------------------------------------------------------------------------
FOR ALL OTHER COMMUNICATIONS (E.G., REQUESTS FOR TRANS-
FERS, WITHDRAWALS, OR REQUIRED NOTICES) SENT BY REGULAR
MAIL:
- --------------------------------------------------------------------------------
Equitable Life
EQUI-VEST(R)
P.O. Box 2996
New York, NY 10116-2996
- --------------------------------------------------------------------------------
FOR CONTRIBUTIONS SENT BY EXPRESS DELIVERY:
- --------------------------------------------------------------------------------
Equitable Life
c/o Bank One, N.A.
300 Harmon Meadow Boulevard
3rd Floor
Secaucus, NJ 07094
Attn: Box 13463
2
- --------------------------------------------------------------------------------
FOR ALL OTHER COMMUNICATIONS (E.G., REQUESTS FOR TRANS-
FERS, WITHDRAWALS, OR REQUIRED NOTICES) SENT BY EXPRESS
DELIVERY:
- --------------------------------------------------------------------------------
Equitable Life EQUI-VEST(R) 200 Plaza Drive 2nd Floor Secaucus, NJ 07094
- --------------------------------------------------------------------------------
REPORTS WE PROVIDE:
- --------------------------------------------------------------------------------
o written confirmation of financial transactions;
o quarterly statements of your contract values as of the close of each
calendar quarter; and
o annual statement of your contract values as of your contract date
anniversary.
- --------------------------------------------------------------------------------
TELEPHONE OPERATED PROGRAM SUPPORT ("TOPS") AND
EQACCESS SYSTEMS:
- --------------------------------------------------------------------------------
TOPS is designed to provide you with up-to-date information via touch-tone
telephone. EQAccess is designed to provide this information through the
Internet. You can obtain information on:
o your current account value;
o your current allocation percentages;
o the number of units you have in the variable investment options;
o rates to maturity for fixed maturity options;
o the daily unit values for the variable investment options; and
o performance information regarding the variable investment options (not
available through TOPS).
You can also:
o change your allocation percentages and/or transfer among the variable
investment options; and
o change your TOPS personal identification number ("PIN") (not available
through EQAccess).
o change your EQAccess password (not available through TOPS).
TOPS and EQAccess are normally available seven days a week, 24 hours a day. You
may use TOPS by calling toll free 1 (800) 755-7777. You may use EQAccess by
visiting our Web site at http:// www.equitable.com and clicking on EQAccess. Of
course, for reasons beyond our control, these services may sometimes be
unavailable.
We have established procedures to reasonably confirm that the instructions
communicated by telephone or the Internet are genuine. For example, we will
require certain personal identification information before we will act on
telephone or Internet instructions and we will provide written confirmation of
your transfers. If we do not employ reasonable procedures to confirm the
genuineness of telephone or Internet instructions, we may be liable for any
losses arising out of any act or omission that constitutes negligence, lack of
good faith, or wilful misconduct. In light of our procedures, we will not be
liable for following telephone or Internet instructions we reasonably believe to
be genuine.
We reserve the right to limit access to these services if we determine that you
engaged in a disruptive transfer activity such as "market timing" (see
"Disruptive transfer activity" in "Transferring your money among investment
options" in your Prospectus).
- --------------------------------------------------------------------------------
CUSTOMER SERVICE REPRESENTATIVE:
- --------------------------------------------------------------------------------
You may also use our toll-free number 1 (800) 628-6673 to speak with one of our
customer service representatives. Our customer service representatives are
available on each business day Monday through Thursday from 8:00 a.m. to 7:00
p.m., and on Fridays until 5:00 p.m., Eastern Time.
Hearing or speech-impaired clients may call the AT&T National Relay Number at
(800) 855-2880 for information about your account. If you have a
Telecommunications Device for the Deaf (TDD), you may relay messages or
questions to our Customer Service Department at (800) 628-6673, Monday through
Thursday from 8:00 a.m. to 7:00 p.m. and Friday until 5:00 p.m. Eastern Time.
AT&T personnel will communicate our reply back to you, via the TDD.
- --------------------------------------------------------------------------------
TOLL-FREE TELEPHONE SERVICE:
- --------------------------------------------------------------------------------
You may reach us toll-free by calling 1 (800) 841-0801 for a recording of daily
unit values for the variable investment options.
3
(2) COMBINATION OF CERTAIN INVESTMENT OPTIONS
Interests in the EQ/Putnam International Equity, EQ/Capital Guardian U.S. Equity
and the EQ/Alliance Small Cap Growth investment options (the "surviving
options") replaced or will replace interests in the EQ/T. Rowe Price
International Stock, EQ/AXP New Dimensions and the EQ/AXP Strategy Aggressive
investment options, respectively (the "replaced options"), and these options are
or will no longer be available. At the time of the replacement, all the assets
that are in the replaced options are moved into the surviving options. After the
replacement, any allocation elections to the replaced options will then be
considered as allocation elections to the surviving options. The effective date
for the replacement of EQ/T. Rowe Price International Stock investment option
was April 26, 2002, therefore, references to it have been omitted from the fee
table, the expense examples and the investment performance. The replacement of
EQ/AXP New Dimensions and the EQ/AXP Strategy Aggressive investment options will
be on or about July 12, 2002, subject to shareholder vote. We will notify you if
these replacements do not take place.
(3) INVESTMENT OPTIONS
Please note the following information:
- --------------------------------------------------------------------------------
Former Name New Name Effective Date
- --------------------------------------------------------------------------------
EQ/Alliance High Yield EQ/High Yield May 1, 2002
- --------------------------------------------------------------------------------
EQ/Putnam Investors Growth EQ/Putnam Voyager May 1, 2002
- --------------------------------------------------------------------------------
The investment objective and adviser for the corresponding portfolio remain the
same.
(4) THE TRUSTS' ANNUAL EXPENSES
The following table sets forth the annual expenses for each portfolio as of
December 31, 2001. All portfolios may not be available in all annuity products.
4
THE TRUSTS' ANNUAL EXPENSES
(AS A PERCENTAGE OF AVERAGE DAILY NET ASSETS IN EACH PORTFOLIO)
- ---------------------------------------------------------------------------------------------------------------------
Net
total annual
Management Fees Other expenses expenses (After
(After expense (After expense expense
Portfolio Name limitation)(1) 12b-1 Fees(2) limitation)(3) limitation)(4)
- ---------------------------------------------------------------------------------------------------------------------
AXA PREMIER VIP TRUST:
- ---------------------------------------------------------------------------------------------------------------------
AXA Premier VIP Core Bond* 0.00% 0.25% 0.70% 0.95%
AXA Premier VIP Health Care* 0.44% 0.25% 1.16% 1.85%
AXA Premier VIP International Equity* 0.62% 0.25% 0.93% 1.80%
AXA Premier VIP Large Cap Core Equity* 0.17% 0.25% 0.93% 1.35%
AXA Premier VIP Large Cap Growth* 0.31% 0.25% 0.79% 1.35%
AXA Premier VIP Large Cap Value* 0.08% 0.25% 1.02% 1.35%
AXA Premier VIP Small/Mid Cap Growth* 0.42% 0.25% 0.93% 1.60%
AXA Premier VIP Small/Mid Cap Value* 0.20% 0.25% 1.15% 1.60%
AXA Premier VIP Technology* 0.58% 0.25% 1.02% 1.85%
- ---------------------------------------------------------------------------------------------------------------------
EQ ADVISORS TRUST:
- ---------------------------------------------------------------------------------------------------------------------
EQ/Aggressive Stock 0.61% -- 0.08% 0.69%
EQ/Alliance Common Stock 0.46% -- 0.07% 0.53%
EQ/Alliance Global 0.73% -- 0.12% 0.85%
EQ/Alliance Growth and Income 0.57% -- 0.06% 0.63%
EQ/Alliance Growth Investors 0.57% -- 0.06% 0.63%
EQ/Alliance Intermediate Government Securities 0.50% -- 0.12% 0.62%
EQ/Alliance International 0.85% -- 0.25% 1.10%
EQ/Alliance Money Market 0.33% -- 0.07% 0.40%
EQ/Alliance Premier Growth 0.84% 0.25% 0.06% 1.15%
EQ/Alliance Quality Bond 0.53% -- 0.07% 0.60%
EQ/Alliance Small Cap Growth 0.75% -- 0.06% 0.81%
EQ/Alliance Technology 0.82% 0.25% 0.08% 1.15%
EQ/AXP New Dimensions 0,00% 0.25% 0.70% 0.95%
EQ/AXP Strategy Aggressive 0.00% 0.25% 0.75% 1.00%
EQ/Balanced 0.57% -- 0.08% 0.65%
EQ/Bernstein Diversified Value 0.61% 0.25% 0.09% 0.95%
EQ/Calvert Socially Responsible 0.00% 0.25% 0.80% 1.05%
EQ/Capital Guardian International 0.66% 0.25% 0.29% 1.20%
EQ/Capital Guardian Research 0.55% 0.25% 0.15% 0.95%
EQ/Capital Guardian US Equity 0.59% 0.25% 0.11% 0.95%
EQ/Emerging Markets Equity 0.87% 0.25% 0.68% 1.80%
EQ/Equity 500 Index 0.25% -- 0.06% 0.31%
EQ/Evergreen Omega 0.00% 0.25% 0.70% 0.95%
EQ/FI Mid Cap 0.48% 0.25% 0.27% 1.00%
EQ/FI Small/Mid Cap Value 0.74% 0.25% 0.11% 1.10%
EQ/High Yield 0.60% -- 0.07% 0.67%
EQ/International Equity Index 0.35% 0.25% 0.50% 1.10%
EQ/J.P. Morgan Core Bond 0.44% 0.25% 0.11% 0.80%
EQ/Janus Large Cap Growth 0.76% 0.25% 0.14% 1.15%
EQ/Lazard Small Cap Value 0.72% 0.25% 0.13% 1.10%
EQ/Marsico Focus* 0.00% 0.25% 0.90% 1.15%
EQ/Mercury Basic Value Equity 0.60% 0.25% 0.10% 0.95%
EQ/MFS Emerging Growth Companies 0.63% 0.25% 0.09% 0.97%
EQ/MFS Investors Trust 0.58% 0.25% 0.12% 0.95%
EQ/MFS Research 0.63% 0.25% 0.07% 0.95%
EQ/Putnam Growth & Income Value 0.57% 0.25% 0.13% 0.95%
EQ/Putnam International Equity 0.71% 0.25% 0.29% 1.25%
EQ/Putnam Voyager 0.62% 0.25% 0.08% 0.95%
EQ/Small Company Index 0.25% 0.25% 0.35% 0.85%
- ---------------------------------------------------------------------------------------------------------------------
Notes:
* Subject to State availability.
(1) The management fees for each Portfolio cannot be increased without a vote of
that Portfolio's shareholders. See footnote (4) for any expense limitation
agreement information.
5
(2) Portfolio shares are all subject to fees imposed under the distribution
plans (the "Rule 12b-1 Plan") adopted by the Trusts pursuant to Rule 12b-1
under the Investment Company Act of 1940. The 12b-1 fee will not be
increased for the life of the contracts.
(3) The amounts shown as "Other Expenses" will fluctuate from year to year
depending on actual expenses. Since initial seed capital was invested for
the EQ/Marsico Focus Portfolio on August 31, 2001, "Other Expenses" shown
have been annualized. Also, initial seed capital was invested for the
Portfolios of the AXA Premier VIP Trust on December 31, 2001, thus, "Other
Expenses" shown are estimated. See footnote (4) for any expense limitation
agreement information.
(4) Equitable Life, the Trusts' manager, has entered into expense limitation
agreements with respect to certain Portfolios which are effective through
April 30, 2003. Under these agreements, Equitable Life has agreed to waive
or limit its fees and assume other expenses of each of these Portfolios, if
necessary, in an amount that limits each Portfolio's total Annual Expenses
(exclusive of interest, taxes, brokerage commissions, capitalized
expenditures, and extraordinary expenses) to not more than the amounts
specified above as "Net Total Annual Expenses." Each Portfolio may at a
later date make a reimbursement to Equitable Life for any of the management
fees waived or limited and other expenses assumed and paid by Equitable Life
pursuant to the expense limitation agreement provided that the Portfolio's
current annual operating expenses do not exceed the operating expense limit
determined for such Portfolio. For more information, see the prospectus for
each Trust. The following chart indicates management fees and other expenses
before any fee waivers and/or expense reimbursements that would have applied
to each Portfolio. Portfolios that are not listed below do not have an
expense limitation arrangement in effect or the expense limitation
arrangement did not result in a fee waiver or reimbursement.
- --------------------------------------------------------------------------------
Management Other expenses
Fees (before any (before any fee
fee waivers waivers and/or
and/or expense expense
Portfolio Name reimbursements) reimbursements)
- --------------------------------------------------------------------------------
AXA PREMIER VIP TRUST:
- --------------------------------------------------------------------------------
AXA Premier VIP Core Bond 0.60% 0.84%
AXA Premier VIP Health Care 1.20% 1.16%
AXA Premier VIP International
Equity 1.05% 0.93%
AXA Premier VIP Large Cap Core
Equity 0.90% 0.93%
AXA Premier VIP Large Cap Growth 0.90% 0.79%
AXA Premier VIP Large Cap Value 0.90% 1.02%
AXA Premier VIP Small/Mid Cap
Growth 1.10% 0.93%
AXA Premier VIP Small/Mid Cap
Value 1.10% 1.15%
AXA Premier VIP Technology 1.20% 1.02%
- --------------------------------------------------------------------------------
EQ ADVISORS TRUST:
- --------------------------------------------------------------------------------
EQ/Alliance Premier Growth 0.90% 0.06%
EQ/Alliance Technology 0.90% 0.08%
EQ/AXP New Dimensions 0.65% 1.06%
EQ/AXP Strategy Aggressive 0.70% 0.77%
- --------------------------------------------------------------------------------
Management Other expenses
Fees (before any (before any fee
fee waivers waivers and/or
and/or expense expense
Portfolio Name reimbursements) reimbursements)
- --------------------------------------------------------------------------------
EQ/Bernstein Diversified Value 0.65% 0.09%
EQ/Calvert Socially Responsible 0.65% 1.46%
EQ/Capital Guardian International 0.85% 0.29%
EQ/Capital Guardian Research 0.65% 0.15%
EQ/Capital Guardian US Equity 0.65% 0.11%
EQ/Emerging Markets Equity 1.15% 0.68%
EQ/Evergreen Omega 0.65% 0.99%
EQ/FI Mid Cap 0.70% 0.27%
EQ/FI Small/Mid Cap Value 0.75% 0.11%
EQ/International Equity Index 0.35% 0.50%
EQ/J.P. Morgan Core Bond 0.45% 0.11%
EQ/Janus Large Cap Growth 0.90% 0.14%
EQ/Lazard Small Cap Value 0.75% 0.13%
EQ/Marsico Focus 0.90% 2.44%
EQ/MFS Investors Trust 0.60% 0.12%
EQ/MFS Research 0.65% 0.07%
EQ/Putnam Growth & Income Value 0.60% 0.13%
EQ/Putnam International Equity 0.85% 0.29%
EQ/Putnam Voyager 0.65% 0.08%
- --------------------------------------------------------------------------------
6
EXAMPLES: EQUI-VEST(R) SERIES 300 CONTRACTS
For each type of series 300 contract, the examples below show the expenses that
a hypothetical contract owner or participant, as applicable, would pay in the
situations illustrated. We assume a $1,000 contribution is invested in one of
the variable investment options listed, and a 5% annual return is earned on the
assets in that option.(1) The annual administrative charge is based on charges
that apply to a mix of estimated contract sizes, resulting in an estimated
administrative charge for the purpose of these examples of $0.714 per $1,000. We
also assume there is no waiver of the withdrawal charge.
The examples assume the continuation of Total Annual Expenses (after expense
limitation) shown for each Portfolio of the Trusts in the table above, for the
entire one, three, five and ten year periods included in the examples.
These examples should not be considered a representation of past or future
expenses for each option. Actual expenses may be greater or less than those
shown. Similarly, the annual rate of return assumed in the examples is not an
estimate or guarantee of future investment performance.
- ----------------------------------------------------------------------------------------------------
If you surrender your contract at the end
of each period shown, the expenses
would be:
---------------------------------------------------
1 year 3 years 5 years 10 years
- ----------------------------------------------------------------------------------------------------
AXA Premier VIP Core Bond $ 80.24 $ 134.71 $ 190.82 $ 278.92
AXA Premier VIP Health Care $ 89.17 $ 161.18 $ 235.46 $ 368.51
AXA Premier VIP International Equity $ 88.68 $ 159.72 $ 233.09 $ 363.75
AXA Premier VIP Large Cap Core Equity $ 84.21 $ 146.54 $ 211.50 $ 319.76
AXA Premier VIP Large Cap Growth $ 84.21 $ 146.54 $ 211.50 $ 319.76
AXA Premier VIP Large Cap Value $ 84.21 $ 146.54 $ 211.50 $ 319.76
AXA Premier VIP Small/Mid Cap Growth $ 86.69 $ 153.88 $ 223.55 $ 344.44
AXA Premier VIP Small/Mid Cap Value $ 86.69 $ 153.88 $ 223.55 $ 344.44
AXA Premier VIP Technology $ 89.17 $ 161.18 $ 235.46 $ 368.51
EQ/Aggressive Stock $ 77.66 $ 126.97 $ 177.12 $ 251.47
EQ/Alliance Common Stock $ 76.07 $ 122.18 $ 168.60 $ 234.22
EQ/Alliance Global $ 79.25 $ 131.74 $ 185.57 $ 268.45
EQ/Alliance Growth and Income $ 77.06 $ 125.18 $ 173.93 $ 245.03
EQ/Alliance Growth Investors $ 77.06 $ 125.18 $ 173.93 $ 245.03
EQ/Alliance Intermediate Government Securities $ 76.96 $ 124.88 $ 173.40 $ 243.96
EQ/Alliance International $ 81.73 $ 139.16 $ 198.66 $ 294.43
EQ/Alliance Money Market $ 74.78 $ 118.28 $ 161.65 $ 219.99
EQ/Alliance Premier Growth $ 82.22 $ 140.64 $ 201.26 $ 299.54
EQ/Alliance Quality Bond $ 76.76 $ 124.28 $ 172.34 $ 241.80
EQ/Alliance Small Cap Growth $ 78.85 $ 130.55 $ 183.46 $ 264.23
EQ/Alliance Technology $ 82.22 $ 140.64 $ 201.26 $ 299.54
EQ/AXP New Dimensions $ 80.24 $ 134.71 $ 190.82 $ 278.92
EQ/AXP Strategy Aggressive $ 80.74 $ 136.19 $ 193.44 $ 284.11
EQ/Balanced $ 77.26 $ 125.77 $ 174.99 $ 247.18
EQ/Bernstein Diversified Value $ 80.24 $ 134.71 $ 190.82 $ 278.92
EQ/Calvert Socially Responsible $ 81.23 $ 137.68 $ 196.05 $ 289.28
EQ/Capital Guardian International $ 82.72 $ 142.11 $ 203.86 $ 304.64
EQ/Capital Guardian Research $ 80.24 $ 134.71 $ 190.82 $ 278.92
EQ/Capital Guardian U.S. Equity $ 80.24 $ 134.71 $ 190.82 $ 278.92
EQ/Emerging Markets Equity $ 88.68 $ 159.72 $ 233.09 $ 363.75
EQ/Equity 500 Index $ 73.89 $ 115.58 $ 156.81 $ 210.03
EQ/Evergreen Omega $ 80.24 $ 134.71 $ 190.82 $ 278.92
EQ/FI Mid Cap $ 80.74 $ 136.19 $ 193.44 $ 284.11
EQ/FI Small/Mid Cap Value $ 81.73 $ 139.16 $ 198.66 $ 294.43
EQ/High Yield $ 77.46 $ 126.37 $ 176.05 $ 249.33
EQ/International Equity Index $ 81.73 $ 139.16 $ 198.66 $ 294.43
EQ/J.P. Morgan Core Bond $ 78.75 $ 130.25 $ 182.93 $ 263.17
EQ/Janus Large Cap Growth $ 82.22 $ 140.64 $ 201.26 $ 299.54
EQ/Lazard Small Cap Value $ 81.73 $ 139.16 $ 198.66 $ 294.43
EQ/Marsico Focus $ 82.22 $ 140.64 $ 201.26 $ 299.54
EQ/Mercury Basic Value Equity $ 80.24 $ 134.71 $ 190.82 $ 278.92
EQ/MFS Emerging Growth Companies $ 80.44 $ 135.30 $ 191.87 $ 281.00
EQ/MFS Investors Trust $ 80.24 $ 134.71 $ 190.82 $ 278.92
EQ/MFS Research $ 80.24 $ 134.71 $ 190.82 $ 278.92
EQ/Putnam Growth & Income Value $ 80.24 $ 134.71 $ 190.82 $ 278.92
EQ/Putnam International Equity $ 83.22 $ 143.59 $ 206.45 $ 309.70
EQ/Putnam Voyager $ 80.24 $ 134.71 $ 190.82 $ 278.92
EQ/Small Company Index $ 79.25 $ 131.74 $ 185.57 $ 268.45
- ----------------------------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------------
If you do not surrender your contract at
the end of each period shown, the
expenses would be:
---------------------------------------------------
1 year 3 years 5 years 10 years
- ----------------------------------------------------------------------------------------------------
AXA Premier VIP Core Bond $ 24.88 $ 76.54 $ 130.82 $ 278.92
AXA Premier VIP Health Care $ 34.33 $ 104.60 $ 177.09 $ 368.51
AXA Premier VIP International Equity $ 33.80 $ 103.05 $ 174.57 $ 363.75
AXA Premier VIP Large Cap Core Equity $ 29.08 $ 89.08 $ 151.61 $ 319.76
AXA Premier VIP Large Cap Growth $ 29.08 $ 89.08 $ 151.61 $ 319.76
AXA Premier VIP Large Cap Value $ 29.08 $ 89.08 $ 151.61 $ 319.76
AXA Premier VIP Small/Mid Cap Growth $ 31.70 $ 96.86 $ 164.42 $ 344.44
AXA Premier VIP Small/Mid Cap Value $ 31.70 $ 96.86 $ 164.42 $ 344.44
AXA Premier VIP Technology $ 34.33 $ 104.60 $ 177.09 $ 368.51
EQ/Aggressive Stock $ 22.15 $ 68.33 $ 117.12 $ 251.47
EQ/Alliance Common Stock $ 20.48 $ 63.26 $ 108.60 $ 234.22
EQ/Alliance Global $ 23.83 $ 73.39 $ 125.57 $ 268.45
EQ/Alliance Growth and Income $ 21.52 $ 66.43 $ 113.93 $ 245.03
EQ/Alliance Growth Investors $ 21.52 $ 66.43 $ 113.93 $ 245.03
EQ/Alliance Intermediate Government Securities $ 21.42 $ 66.11 $ 113.40 $ 243.96
EQ/Alliance International $ 26.46 $ 81.25 $ 138.66 $ 294.43
EQ/Alliance Money Market $ 19.11 $ 59.12 $ 101.65 $ 219.99
EQ/Alliance Premier Growth $ 26.98 $ 82.82 $ 141.26 $ 299.54
EQ/Alliance Quality Bond $ 21.21 $ 65.48 $ 112.34 $ 241.80
EQ/Alliance Small Cap Growth $ 23.41 $ 72.12 $ 123.46 $ 264.23
EQ/Alliance Technology $ 26.98 $ 82.82 $ 141.26 $ 299.54
EQ/AXP New Dimensions $ 24.88 $ 76.54 $ 130.82 $ 278.92
EQ/AXP Strategy Aggressive $ 25.41 $ 78.11 $ 133.44 $ 284.11
EQ/Balanced $ 21.73 $ 67.06 $ 114.99 $ 247.18
EQ/Bernstein Diversified Value $ 24.88 $ 76.54 $ 130.82 $ 278.92
EQ/Calvert Socially Responsible $ 25.93 $ 79.68 $ 136.05 $ 289.28
EQ/Capital Guardian International $ 27.51 $ 84.39 $ 143.86 $ 304.64
EQ/Capital Guardian Research $ 24.88 $ 76.54 $ 130.82 $ 278.92
EQ/Capital Guardian U.S. Equity $ 24.88 $ 76.54 $ 130.82 $ 278.92
EQ/Emerging Markets Equity $ 33.80 $ 103.05 $ 174.57 $ 363.75
EQ/Equity 500 Index $ 18.17 $ 56.26 $ 96.81 $ 210.03
EQ/Evergreen Omega $ 24.88 $ 76.54 $ 130.82 $ 278.92
EQ/FI Mid Cap $ 25.41 $ 78.11 $ 133.44 $ 284.11
EQ/FI Small/Mid Cap Value $ 26.46 $ 81.25 $ 138.66 $ 294.43
EQ/High Yield $ 21.94 $ 67.70 $ 116.05 $ 249.33
EQ/International Equity Index $ 26.46 $ 81.25 $ 138.66 $ 294.43
EQ/J.P. Morgan Core Bond $ 23.31 $ 71.81 $ 122.93 $ 263.17
EQ/Janus Large Cap Growth $ 26.98 $ 82.82 $ 141.26 $ 299.54
EQ/Lazard Small Cap Value $ 26.46 $ 81.25 $ 138.66 $ 294.43
EQ/Marsico Focus $ 26.98 $ 82.82 $ 141.26 $ 299.54
EQ/Mercury Basic Value Equity $ 24.88 $ 76.54 $ 130.82 $ 278.92
EQ/MFS Emerging Growth Companies $ 25.09 $ 77.17 $ 131.87 $ 281.00
EQ/MFS Investors Trust $ 24.88 $ 76.54 $ 130.82 $ 278.92
EQ/MFS Research $ 24.88 $ 76.54 $ 130.82 $ 278.92
EQ/Putnam Growth & Income Value $ 24.88 $ 76.54 $ 130.82 $ 278.92
EQ/Putnam International Equity $ 28.03 $ 85.95 $ 146.45 $ 309.70
EQ/Putnam Voyager $ 24.88 $ 76.54 $ 130.82 $ 278.92
EQ/Small Company Index $ 23.83 $ 73.39 $ 125.57 $ 268.45
- ----------------------------------------------------------------------------------------------------
7
EXAMPLES: EQUI-VEST(R) SERIES 400 CONTRACTS
For each type of series 400 contract, the examples below show the expenses that
a hypothetical contract owner or participant, as applicable, would pay in the
situations illustrated. We assume a $1,000 contribution is invested in one of
the variable investment options listed, and a 5% annual return is earned on the
assets in that option.(1) The annual administrative charge is based on charges
that apply to a mix of estimated contract sizes, resulting in an estimated
administrative charge for the purpose of these examples of $0.714 per $1,000. We
also assume there is no waiver of the withdrawal charge.
The examples assume the continuation of Total Annual Expenses (after expense
limitation) shown for each Portfolio of the Trusts in the table above, for the
entire one, three, five and ten year periods included in the examples. Other
than as indicated above, the charges and expenses used to compute the examples
below are the highest expenses under a series 400 contract. The expenses
applicable under your contract may be lower.
These examples should not be considered a representation of past or future
expenses for each option. Actual expenses may be greater or less than those
shown. Similarly, the annual rate of return assumed in the examples is not an
estimate or guarantee of future investment performance.
- ----------------------------------------------------------------------------------------------------
If you surrender your contract at the end
of each period shown, the expenses
would be:
---------------------------------------------------
1 year 3 years 5 years 10 years
- ----------------------------------------------------------------------------------------------------
AXA Premier VIP Core Bond $ 86.69 $ 153.88 $ 223.55 $ 344.44
AXA Premier VIP Health Care $ 95.62 $ 179.98 $ 265.84 $ 428.25
AXA Premier VIP International Equity $ 95.13 $ 178.54 $ 263.53 $ 423.79
AXA Premier VIP Large Cap Core Equity $ 90.66 $ 165.54 $ 242.55 $ 382.65
AXA Premier VIP Large Cap Growth $ 90.66 $ 165.54 $ 242.55 $ 382.65
AXA Premier VIP Large Cap Value $ 90.66 $ 165.54 $ 242.55 $ 382.65
AXA Premier VIP Small/Mid Cap Growth $ 93.14 $ 172.78 $ 254.26 $ 405.74
AXA Premier VIP Small/Mid Cap Value $ 93.14 $ 172.78 $ 254.26 $ 405.74
AXA Premier VIP Technology $ 95.62 $ 179.98 $ 265.84 $ 428.25
EQ/Aggressive Stock $ 84.11 $ 146.24 $ 211.01 $ 318.75
EQ/Alliance Common Stock $ 82.52 $ 141.52 $ 202.82 $ 302.60
EQ/Alliance Global $ 85.70 $ 150.95 $ 218.74 $ 334.64
EQ/Alliance Growth and Income $ 83.51 $ 144.47 $ 208.00 $ 312.73
EQ/Alliance Growth Investors $ 83.51 $ 144.47 $ 208.00 $ 312.73
EQ/Alliance Intermediate Government Securities $ 83.42 $ 144.18 $ 207.48 $ 311.72
EQ/Alliance International $ 88.18 $ 158.26 $ 230.71 $ 358.96
EQ/Alliance Money Market $ 81.23 $ 137.68 $ 196.05 $ 289.28
EQ/Alliance Premier Growth $ 88.68 $ 159.72 $ 233.09 $ 363.75
EQ/Alliance Quality Bond $ 83.22 $ 143.59 $ 206.45 $ 309.70
EQ/Alliance Small Cap Growth $ 85.30 $ 149.77 $ 216.82 $ 330.70
EQ/Alliance Technology $ 88.68 $ 159.72 $ 233.09 $ 363.75
EQ/AXP New Dimensions $ 86.69 $ 153.88 $ 223.55 $ 344.44
EQ/AXP Strategy Aggressive $ 87.19 $ 155.34 $ 225.94 $ 349.31
EQ/Balanced $ 83.71 $ 145.06 $ 209.03 $ 314.74
EQ/Bernstein Diversified Value $ 86.69 $ 153.88 $ 223.55 $ 344.44
EQ/Calvert Socially Responsible $ 87.68 $ 156.80 $ 228.33 $ 354.14
EQ/Capital Guardian International $ 89.17 $ 161.18 $ 235.46 $ 368.51
EQ/Capital Guardian Research $ 86.69 $ 153.88 $ 223.55 $ 344.44
EQ/Capital Guardian U.S. Equity $ 86.69 $ 153.88 $ 223.55 $ 344.44
EQ/Emerging Markets Equity $ 95.13 $ 178.54 $ 263.53 $ 423.79
EQ/Equity 500 Index $ 80.34 $ 135.01 $ 191.35 $ 279.96
EQ/Evergreen Omega $ 86.69 $ 153.88 $ 223.55 $ 344.44
EQ/FI Mid Cap $ 87.19 $ 155.34 $ 225.94 $ 349.31
EQ/FI Small/Mid Cap Value $ 88.18 $ 158.26 $ 230.71 $ 358.96
EQ/High Yield $ 83.91 $ 145.65 $ 210.05 $ 316.75
EQ/International Equity Index $ 88.18 $ 158.26 $ 230.71 $ 358.96
EQ/J.P. Morgan Core Bond $ 85.20 $ 149.48 $ 216.33 $ 329.71
EQ/Janus Large Cap Growth $ 88.68 $ 159.72 $ 233.09 $ 363.75
EQ/Lazard Small Cap Value $ 88.18 $ 158.26 $ 230.71 $ 358.96
EQ/Marsico Focus $ 88.68 $ 159.72 $ 233.09 $ 363.75
EQ/Mercury Basic Value Equity $ 86.69 $ 153.88 $ 223.55 $ 344.44
EQ/MFS Emerging Growth Companies $ 86.89 $ 154.46 $ 224.50 $ 346.39
EQ/MFS Investors Trust $ 86.69 $ 153.88 $ 223.55 $ 344.44
EQ/MFS Research $ 86.69 $ 153.88 $ 223.55 $ 344.44
EQ/Putnam Growth & Income Value $ 86.69 $ 153.88 $ 223.55 $ 344.44
EQ/Putnam International Equity $ 89.67 $ 162.63 $ 237.83 $ 373.25
EQ/Putnam Voyager $ 86.69 $ 153.88 $ 223.55 $ 344.44
EQ/Small Company Index $ 85.70 $ 150.95 $ 218.74 $ 334.64
- ----------------------------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------------
If you do not surrender your contract at
the end of each period shown, the
expenses would be:
---------------------------------------------------
1 year 3 years 5 years 10 years
- ----------------------------------------------------------------------------------------------------
AXA Premier VIP Core Bond $ 31.70 $ 96.86 $ 164.42 $ 344.44
AXA Premier VIP Health Care $ 41.15 $ 124.53 $ 209.40 $ 428.25
AXA Premier VIP International Equity $ 40.62 $ 123.01 $ 206.95 $ 423.79
AXA Premier VIP Large Cap Core Equity $ 35.90 $ 109.22 $ 184.63 $ 382.65
AXA Premier VIP Large Cap Growth $ 35.90 $ 109.22 $ 184.63 $ 382.65
AXA Premier VIP Large Cap Value $ 35.90 $ 109.22 $ 184.63 $ 382.65
AXA Premier VIP Small/Mid Cap Growth $ 38.52 $ 116.90 $ 197.09 $ 405.74
AXA Premier VIP Small/Mid Cap Value $ 38.52 $ 116.90 $ 197.09 $ 405.74
AXA Premier VIP Technology $ 41.15 $ 124.53 $ 209.40 $ 428.25
EQ/Aggressive Stock $ 28.97 $ 88.76 $ 151.09 $ 318.75
EQ/Alliance Common Stock $ 27.30 $ 83.76 $ 142.82 $ 302.60
EQ/Alliance Global $ 30.65 $ 93.75 $ 159.31 $ 334.64
EQ/Alliance Growth and Income $ 28.34 $ 86.89 $ 148.00 $ 312.73
EQ/Alliance Growth Investors $ 28.34 $ 86.89 $ 148.00 $ 312.73
EQ/Alliance Intermediate Government Securities $ 28.24 $ 86.58 $ 147.48 $ 311.72
EQ/Alliance International $ 33.28 $ 101.51 $ 172.04 $ 358.96
EQ/Alliance Money Market $ 25.93 $ 79.68 $ 136.05 $ 289.28
EQ/Alliance Premier Growth $ 33.80 $ 103.05 $ 174.57 $ 363.75
EQ/Alliance Quality Bond $ 28.03 $ 85.95 $ 146.45 $ 309.70
EQ/Alliance Small Cap Growth $ 30.23 $ 92.51 $ 157.26 $ 330.70
EQ/Alliance Technology $ 33.80 $ 103.05 $ 174.57 $ 363.75
EQ/AXP New Dimensions $ 31.70 $ 96.86 $ 164.42 $ 344.44
EQ/AXP Strategy Aggressive $ 32.23 $ 98.41 $ 166.97 $ 349.31
EQ/Balanced $ 28.55 $ 87.51 $ 149.03 $ 314.74
EQ/Bernstein Diversified Value $ 31.70 $ 96.86 $ 164.42 $ 344.44
EQ/Calvert Socially Responsible $ 32.75 $ 99.96 $ 169.51 $ 354.14
EQ/Capital Guardian International $ 34.33 $ 104.60 $ 177.09 $ 368.51
EQ/Capital Guardian Research $ 31.70 $ 96.86 $ 164.42 $ 344.44
EQ/Capital Guardian U.S. Equity $ 31.70 $ 96.86 $ 164.42 $ 344.44
EQ/Emerging Markets Equity $ 40.62 $ 123.01 $ 206.95 $ 423.79
EQ/Equity 500 Index $ 24.99 $ 76.85 $ 131.35 $ 279.96
EQ/Evergreen Omega $ 31.70 $ 96.86 $ 164.42 $ 344.44
EQ/FI Mid Cap $ 32.23 $ 98.41 $ 166.97 $ 349.31
EQ/FI Small/Mid Cap Value $ 33.28 $ 101.51 $ 172.04 $ 358.96
EQ/High Yield $ 28.76 $ 88.14 $ 150.06 $ 316.75
EQ/International Equity Index $ 33.28 $ 101.51 $ 172.04 $ 358.96
EQ/J.P. Morgan Core Bond $ 30.13 $ 92.19 $ 156.75 $ 329.71
EQ/Janus Large Cap Growth $ 33.80 $ 103.05 $ 174.57 $ 363.75
EQ/Lazard Small Cap Value $ 33.28 $ 101.51 $ 172.04 $ 358.96
EQ/Marsico Focus $ 33.80 $ 103.05 $ 174.57 $ 363.75
EQ/Mercury Basic Value Equity $ 31.70 $ 96.86 $ 164.42 $ 344.44
EQ/MFS Emerging Growth Companies $ 31.91 $ 97.48 $ 165.44 $ 346.39
EQ/MFS Investors Trust $ 31.70 $ 96.86 $ 164.42 $ 344.44
EQ/MFS Research $ 31.70 $ 96.86 $ 164.42 $ 344.44
EQ/Putnam Growth & Income Value $ 31.70 $ 96.86 $ 164.42 $ 344.44
EQ/Putnam International Equity $ 34.85 $ 106.14 $ 179.61 $ 373.25
EQ/Putnam Voyager $ 31.70 $ 96.86 $ 164.42 $ 344.44
EQ/Small Company Index $ 30.65 $ 93.75 $ 159.31 $ 334.64
- ----------------------------------------------------------------------------------------------------
8
EXAMPLES: EQUI-VEST(R) SERIES 500 CONTRACTS
For the series 500 Roth Advantage contract, the examples show the expenses that
a hypothetical contract owner would pay in the situations illustrated. We assume
a single contribution of $1,000 is invested in one of the variable investment
options listed and a 5% annual return is earned on assets in that option.(1) The
annual administrative charge is based on charges that apply to a mix of
estimated contract sizes, resulting in an estimated administrative charge for
the purpose of these examples of $0.714 per $1,000. We also assume there is no
waiver of the withdrawal charge.
The examples assume the continuation of Total Annual Expenses (after expense
limitation) shown for each Portfolio of the Trusts in the table above, for the
entire one, three, five and ten year periods included in the examples.
These examples should not be considered a representation of past or future
expense for each option. Actual expenses may be greater or less than those
shown. Similarly, the annual rate of return assumed in the examples is not an
estimate or guarantee of future investment performance.
- ----------------------------------------------------------------------------------------------------
If you surrender your contract at the end
of each period shown, the expenses
would be:
---------------------------------------------------
1 year 3 years 5 years 10 years
- ----------------------------------------------------------------------------------------------------
AXA Premier VIP Core Bond $ 81.23 $ 137.68 $ 196.05 $ 289.28
AXA Premier VIP Health Care $ 90.16 $ 164.09 $ 240.19 $ 377.96
AXA Premier VIP International Equity $ 89.67 $ 162.63 $ 237.83 $ 373.25
AXA Premier VIP Large Cap Core Equity $ 85.20 $ 149.48 $ 216.33 $ 329.71
AXA Premier VIP Large Cap Growth $ 85.20 $ 149.48 $ 216.33 $ 329.71
AXA Premier VIP Large Cap Value $ 85.20 $ 149.48 $ 216.33 $ 329.71
AXA Premier VIP Small/Mid Cap Growth $ 87.68 $ 156.80 $ 228.33 $ 354.14
AXA Premier VIP Small/Mid Cap Value $ 87.68 $ 156.80 $ 228.33 $ 354.14
AXA Premier VIP Technology $ 90.16 $ 164.09 $ 240.19 $ 377.96
EQ/Aggressive Stock $ 78.65 $ 129.95 $ 182.40 $ 262.11
EQ/Alliance Common Stock $ 77.06 $ 125.18 $ 173.93 $ 245.03
EQ/Alliance Global $ 80.24 $ 134.71 $ 190.82 $ 278.92
EQ/Alliance Growth and Income $ 78.06 $ 128.16 $ 179.23 $ 255.74
EQ/Alliance Growth Investors $ 78.06 $ 128.16 $ 179.23 $ 255.74
EQ/Alliance Intermediate Government Securities $ 77.96 $ 127.86 $ 178.70 $ 254.67
EQ/Alliance International $ 82.72 $ 142.11 $ 203.86 $ 304.64
EQ/Alliance Money Market $ 75.77 $ 121.28 $ 167.00 $ 230.95
EQ/Alliance Premier Growth $ 83.22 $ 143.59 $ 206.45 $ 309.70
EQ/Alliance Quality Bond $ 77.76 $ 127.27 $ 177.65 $ 252.54
EQ/Alliance Small Cap Growth $ 79.84 $ 133.52 $ 188.72 $ 274.74
EQ/Alliance Technology $ 83.22 $ 143.59 $ 206.45 $ 309.70
EQ/AXP New Dimensions $ 81.23 $ 137.68 $ 196.05 $ 289.28
EQ/AXP Strategy Aggressive $ 81.73 $ 139.16 $ 198.66 $ 294.43
EQ/Balanced $ 78.25 $ 128.76 $ 180.29 $ 257.87
EQ/Bernstein Diversified Value $ 81.23 $ 137.68 $ 196.05 $ 289.28
EQ/Calvert Socially Responsible $ 82.22 $ 140.64 $ 201.26 $ 299.54
EQ/Capital Guardian International $ 83.71 $ 145.06 $ 209.03 $ 314.74
EQ/Capital Guardian Research $ 81.23 $ 137.68 $ 196.05 $ 289.28
EQ/Capital Guardian U.S. Equity $ 81.23 $ 137.68 $ 196.05 $ 289.28
EQ/Emerging Markets Equity $ 89.67 $ 162.63 $ 237.83 $ 373.25
EQ/Equity 500 Index $ 74.88 $ 118.58 $ 162.18 $ 221.09
EQ/Evergreen Omega $ 81.23 $ 137.68 $ 196.05 $ 289.28
EQ/FI Mid Cap $ 81.73 $ 139.16 $ 198.66 $ 294.43
EQ/FI Small/Mid Cap Value $ 82.72 $ 142.11 $ 203.86 $ 304.64
EQ/High Yield $ 78.45 $ 129.36 $ 181.35 $ 259.99
EQ/International Equity Index $ 82.72 $ 142.11 $ 203.86 $ 304.64
EQ/J.P. Morgan Core Bond $ 79.74 $ 133.22 $ 188.20 $ 273.70
EQ/Janus Large Cap Growth $ 83.22 $ 143.59 $ 206.45 $ 309.70
EQ/Lazard Small Cap Value $ 82.72 $ 142.11 $ 203.86 $ 304.64
EQ/Marsico Focus $ 83.22 $ 143.59 $ 206.45 $ 309.70
EQ/Mercury Basic Value Equity $ 81.23 $ 137.68 $ 196.05 $ 289.28
EQ/MFS Emerging Growth Companies $ 81.43 $ 138.27 $ 197.10 $ 291.34
EQ/MFS Investors Trust $ 81.23 $ 137.68 $ 196.05 $ 289.28
EQ/MFS Research $ 81.23 $ 137.68 $ 196.05 $ 289.28
EQ/Putnam Growth & Income Value $ 81.23 $ 137.68 $ 196.05 $ 289.28
EQ/Putnam International Equity $ 84.21 $ 146.54 $ 211.50 $ 319.76
EQ/Putnam Voyager $ 81.23 $ 137.68 $ 196.05 $ 289.28
EQ/Small Company Index $ 80.24 $ 134.71 $ 190.82 $ 278.92
- ----------------------------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------------
If you do not surrender your contract at
the end of each period shown, the
expenses would be:
---------------------------------------------------
1 year 3 years 5 years 10 years
- ----------------------------------------------------------------------------------------------------
AXA Premier VIP Core Bond $ 25.93 $ 79.68 $ 136.05 $ 289.28
AXA Premier VIP Health Care $ 35.37 $ 107.68 $ 182.12 $ 377.96
AXA Premier VIP International Equity $ 34.85 $ 106.14 $ 179.61 $ 373.25
AXA Premier VIP Large Cap Core Equity $ 30.13 $ 92.19 $ 156.75 $ 329.71
AXA Premier VIP Large Cap Growth $ 30.13 $ 92.19 $ 156.75 $ 329.71
AXA Premier VIP Large Cap Value $ 30.13 $ 92.19 $ 156.75 $ 329.71
AXA Premier VIP Small/Mid Cap Growth $ 32.75 $ 99.96 $ 169.51 $ 354.14
AXA Premier VIP Small/Mid Cap Value $ 32.75 $ 99.96 $ 169.51 $ 354.14
AXA Premier VIP Technology $ 35.37 $ 107.68 $ 182.12 $ 377.96
EQ/Aggressive Stock $ 23.20 $ 71.49 $ 122.40 $ 262.11
EQ/Alliance Common Stock $ 21.52 $ 66.43 $ 113.93 $ 245.03
EQ/Alliance Global $ 24.88 $ 76.54 $ 130.82 $ 278.92
EQ/Alliance Growth and Income $ 22.57 $ 69.60 $ 119.23 $ 255.74
EQ/Alliance Growth Investors $ 22.57 $ 69.60 $ 119.23 $ 255.74
EQ/Alliance Intermediate Government Securities $ 22.47 $ 69.28 $ 118.70 $ 254.67
EQ/Alliance International $ 27.51 $ 84.39 $ 143.86 $ 304.64
EQ/Alliance Money Market $ 20.16 $ 62.31 $ 107.00 $ 230.95
EQ/Alliance Premier Growth $ 28.03 $ 85.95 $ 146.45 $ 309.70
EQ/Alliance Quality Bond $ 22.26 $ 68.65 $ 117.65 $ 252.54
EQ/Alliance Small Cap Growth $ 24.46 $ 75.28 $ 128.72 $ 274.74
EQ/Alliance Technology $ 28.03 $ 85.95 $ 146.45 $ 309.70
EQ/AXP New Dimensions $ 25.93 $ 79.68 $ 136.05 $ 289.28
EQ/AXP Strategy Aggressive $ 26.46 $ 81.25 $ 138.66 $ 294.43
EQ/Balanced $ 22.78 $ 70.23 $ 120.29 $ 257.87
EQ/Bernstein Diversified Value $ 25.93 $ 79.68 $ 136.05 $ 289.28
EQ/Calvert Socially Responsible $ 26.98 $ 82.82 $ 141.26 $ 299.54
EQ/Capital Guardian International $ 28.55 $ 87.51 $ 149.03 $ 314.74
EQ/Capital Guardian Research $ 25.93 $ 79.68 $ 136.05 $ 289.28
EQ/Capital Guardian U.S. Equity $ 25.93 $ 79.68 $ 136.05 $ 289.28
EQ/Emerging Markets Equity $ 34.85 $ 106.14 $ 179.61 $ 373.25
EQ/Equity 500 Index $ 19.22 $ 59.44 $ 102.18 $ 221.09
EQ/Evergreen Omega $ 25.93 $ 79.68 $ 136.05 $ 289.28
EQ/FI Mid Cap $ 26.46 $ 81.25 $ 138.66 $ 294.43
EQ/FI Small/Mid Cap Value $ 27.51 $ 84.39 $ 143.86 $ 304.64
EQ/High Yield $ 22.99 $ 70.86 $ 121.35 $ 259.99
EQ/International Equity Index $ 27.51 $ 84.39 $ 143.86 $ 304.64
EQ/J.P. Morgan Core Bond $ 24.36 $ 74.96 $ 128.20 $ 273.70
EQ/Janus Large Cap Growth $ 28.03 $ 85.95 $ 146.45 $ 309.70
EQ/Lazard Small Cap Value $ 27.51 $ 84.39 $ 143.86 $ 304.64
EQ/Marsico Focus $ 28.03 $ 85.95 $ 146.45 $ 309.70
EQ/Mercury Basic Value Equity $ 25.93 $ 79.68 $ 136.05 $ 289.28
EQ/MFS Emerging Growth Companies $ 26.14 $ 80.31 $ 137.10 $ 291.34
EQ/MFS Investors Trust $ 25.93 $ 79.68 $ 136.05 $ 289.28
EQ/MFS Research $ 25.93 $ 79.68 $ 136.05 $ 289.28
EQ/Putnam Growth & Income Value $ 25.93 $ 79.68 $ 136.05 $ 289.28
EQ/Putnam International Equity $ 29.08 $ 89.08 $ 151.61 $ 319.76
EQ/Putnam Voyager $ 25.93 $ 79.68 $ 136.05 $ 289.28
EQ/Small Company Index $ 24.88 $ 76.54 $ 130.82 $ 278.92
- ----------------------------------------------------------------------------------------------------
9
EXAMPLES: EQUI-VEST(R) SERIES 100 AND 200 CONTRACTS
For each type of series 100 and 200 contract, the examples below show the
expenses that a hypothetical contract owner or participant, as applicable, would
pay in the situations illustrated. We assume a $1,000 contribution is invested
in one of the variable investment options listed, and a 5% annual return is
earned on the assets in that option.(1) The annual administrative charge is
based on charges that apply to a mix of estimated contract sizes, resulting in
an estimated administrative charge for the purpose of these examples of $0.714
per $$1,000. We also assume there is no waiver of the withdrawal charge.
The examples assume the continuation of Total Annual Expenses (after expense
limitation) shown for each Portfolio of the Trusts in the table above, for the
entire one, three, five and ten year periods included in the examples. Other
than as indicated above, the charges and expenses used to compute the examples
below are the highest applicable expenses under a series 100 or 200 contract
(taking into account the expense limitation at an annual rate of 1.75% for the
EQ/Aggressive Stock, EQ/Balanced, EQ/Alliance Common Stock and EQ/Alliance Money
Market options). The expenses under your contract may be lower.
These examples should not be considered a representation of past or future
expenses for each option. Actual expenses may be greater or less than those
shown. Similarly, the annual rate of return assumed in the examples is not an
estimate or guarantee of future investment performance.
IF YOU SURRENDER YOUR CONTRACT AT THE END OF EACH PERIOD SHOWN, THE EXPENSES
WOULD BE: FOR IRA (TRADITIONAL, STANDARD ROTH, AND CERTAIN QP IRA2) SEP, SARSEP,
EDC AND ANNUITANT-OWNED HR-10 CONTRACTS:
- ----------------------------------------------------------------------------------------------------
At the end of each period shown, the
expenses would be:
1 year 3 years 5 years 10 years
- ----------------------------------------------------------------------------------------------------
AXA Premier VIP Core Bond $ 86.29 $ 140.88 $ 191.46 $ 312.51
AXA Premier VIP Health Care $ 95.17 $ 167.18 $ 234.99 $ 399.13
AXA Premier VIP International Equity $ 94.67 $ 165.73 $ 232.61 $ 394.53
AXA Premier VIP Large Cap Core Equity $ 90.24 $ 152.63 $ 211.01 $ 352.00
AXA Premier VIP Large Cap Growth $ 90.24 $ 152.63 $ 211.01 $ 352.00
AXA Premier VIP Large Cap Value $ 90.24 $ 152.63 $ 211.01 $ 352.00
AXA Premier VIP Small/Mid Cap Growth $ 92.70 $ 159.92 $ 223.07 $ 375.87
AXA Premier VIP Small/Mid Cap Value $ 92.70 $ 159.92 $ 223.07 $ 375.87
AXA Premier VIP Technology $ 95.17 $ 167.18 $ 234.99 $ 399.13
EQ/Aggressive Stock $ 80.96 $ 124.86 $ 164.52 $ 256.59
EQ/Alliance Common Stock $ 80.96 $ 124.86 $ 164.52 $ 256.59
EQ/Alliance Global $ 85.30 $ 137.93 $ 186.52 $ 302.39
EQ/Alliance Growth and Income $ 83.13 $ 131.41 $ 175.57 $ 279.74
EQ/Alliance Growth Investors $ 83.13 $ 131.41 $ 175.57 $ 279.74
EQ/Alliance Intermediate Government Securities $ 83.04 $ 131.11 $ 175.07 $ 278.70
EQ/Alliance International $ 87.77 $ 145.30 $ 198.83 $ 327.51
EQ/Alliance Money Market $ 80.96 $ 124.86 $ 164.52 $ 256.59
EQ/Alliance Premier Growth $ 88.26 $ 146.77 $ 201.28 $ 332.46
EQ/Alliance Quality Bond $ 82.84 $ 130.52 $ 174.07 $ 276.62
EQ/Alliance Small Cap Growth $ 84.91 $ 136.74 $ 184.53 $ 298.31
EQ/Alliance Technology $ 88.26 $ 146.77 $ 201.28 $ 332.46
EQ/AXP New Dimensions $ 86.29 $ 140.88 $ 191.46 $ 312.51
EQ/AXP Strategy Aggressive $ 86.78 $ 142.35 $ 193.92 $ 317.54
EQ/Balanced $ 80.96 $ 124.86 $ 164.52 $ 256.59
EQ/Bernstein Diversified Value $ 86.29 $ 140.88 $ 191.46 $ 312.51
EQ/Calvert Socially Responsible $ 87.28 $ 143.83 $ 196.38 $ 322.54
EQ/Capital Guardian International $ 88.76 $ 148.23 $ 203.72 $ 337.38
EQ/Capital Guardian Research $ 86.29 $ 140.88 $ 191.46 $ 312.51
EQ/Capital Guardian U.S. Equity $ 86.29 $ 140.88 $ 191.46 $ 312.51
EQ/Emerging Markets Equity $ 94.67 $ 165.73 $ 232.61 $ 394.53
EQ/Equity 500 Index $ 79.98 $ 121.87 $ 159.46 $ 245.90
EQ/Evergreen Omega $ 86.29 $ 140.88 $ 191.46 $ 312.51
EQ/FI Mid Cap $ 86.78 $ 142.35 $ 193.92 $ 317.54
EQ/FI Small/Mid Cap Value $ 87.77 $ 145.30 $ 198.83 $ 327.51
EQ/High Yield $ 83.53 $ 132.59 $ 177.57 $ 283.90
EQ/International Equity Index $ 87.77 $ 145.30 $ 198.83 $ 327.51
EQ/J.P. Morgan Core Bond $ 84.81 $ 136.45 $ 184.04 $ 297.29
EQ/Janus Large Cap Growth $ 88.26 $ 146.77 $ 201.28 $ 332.46
EQ/Lazard Small Cap Value $ 87.77 $ 145.30 $ 198.83 $ 327.51
EQ/Marsico Focus $ 88.26 $ 146.77 $ 201.28 $ 332.46
- ----------------------------------------------------------------------------------------------------
10
- ----------------------------------------------------------------------------------------------------
At the end of each period shown, the
expenses would be:
1 year 3 years 5 years 10 years
- ----------------------------------------------------------------------------------------------------
EQ/Mercury Basic Value Equity $ 86.29 $ 140.88 $ 191.46 $ 312.51
EQ/MFS Emerging Growth Companies $ 86.49 $ 141.47 $ 192.45 $ 314.53
EQ/MFS Investors Trust $ 86.29 $ 140.88 $ 191.46 $ 312.51
EQ/MFS Research $ 86.29 $ 140.88 $ 191.46 $ 312.51
EQ/Putnam Growth & Income Value $ 86.29 $ 140.88 $ 191.46 $ 312.51
EQ/Putnam International Equity $ 89.25 $ 149.70 $ 206.16 $ 342.28
EQ/Putnam Voyager $ 86.29 $ 140.88 $ 191.46 $ 312.51
EQ/Small Company Index $ 85.30 $ 137.93 $ 186.52 $ 302.39
- ----------------------------------------------------------------------------------------------------
FOR TSA AND UNIVERSITY TSA CONTRACTS AND FOR QP IRA(3) CONTRACTS (WHERE THE FREE
WITHDRAWAL AMOUNT APPLIES IN THE FIRST CONTRACT YEAR):
- ----------------------------------------------------------------------------------------------------
If you surrender your contract at the end of
each period shown,
the expenses would be:
1 year 3 years 5 years 10 years
- ----------------------------------------------------------------------------------------------------
AXA Premier VIP Core Bond $ 80.14 $ 134.41 $ 191.46 $ 312.51
AXA Premier VIP Health Care $ 89.07 $ 160.89 $ 234.99 $ 399.13
AXA Premier VIP International Equity $ 88.58 $ 159.43 $ 232.61 $ 394.53
AXA Premier VIP Large Cap Core Equity $ 84.11 $ 146.24 $ 211.01 $ 352.00
AXA Premier VIP Large Cap Growth $ 84.11 $ 146.24 $ 211.01 $ 352.00
AXA Premier VIP Large Cap Value $ 84.11 $ 146.24 $ 211.01 $ 352.00
AXA Premier VIP Small/Mid Cap Growth $ 86.59 $ 153.58 $ 223.07 $ 375.87
AXA Premier VIP Small/Mid Cap Value $ 86.59 $ 153.58 $ 223.07 $ 375.87
AXA Premier VIP Technology $ 89.07 $ 160.89 $ 234.99 $ 399.13
EQ/Aggressive Stock $ 74.78 $ 118.28 $ 164.52 $ 256.59
EQ/Alliance Common Stock $ 74.78 $ 118.28 $ 164.52 $ 256.59
EQ/Alliance Global $ 79.15 $ 131.44 $ 186.52 $ 302.39
EQ/Alliance Growth and Income $ 76.96 $ 124.88 $ 175.57 $ 279.74
EQ/Alliance Growth Investors $ 76.96 $ 124.88 $ 175.57 $ 279.74
EQ/Alliance Intermediate Government Securities $ 76.86 $ 124.58 $ 175.07 $ 278.70
EQ/Alliance International $ 81.63 $ 138.86 $ 198.83 $ 327.51
EQ/Alliance Money Market $ 74.78 $ 118.28 $ 164.52 $ 256.59
EQ/Alliance Premier Growth $ 82.12 $ 140.34 $ 201.28 $ 332.46
EQ/Alliance Quality Bond $ 76.67 $ 123.98 $ 174.07 $ 276.62
EQ/Alliance Small Cap Growth $ 78.75 $ 130.25 $ 184.53 $ 298.31
EQ/Alliance Technology $ 82.12 $ 140.34 $ 201.28 $ 332.46
EQ/AXP New Dimensions $ 80.14 $ 134.41 $ 191.46 $ 312.51
EQ/AXP Strategy Aggressive $ 80.64 $ 135.90 $ 193.92 $ 317.54
EQ/Balanced $ 74.78 $ 118.28 $ 164.52 $ 256.59
EQ/Bernstein Diversified Value $ 80.14 $ 134.41 $ 191.46 $ 312.51
EQ/Calvert Socially Responsible $ 81.13 $ 137.38 $ 196.38 $ 322.54
EQ/Capital Guardian International $ 82.62 $ 141.82 $ 203.72 $ 337.38
EQ/Capital Guardian Research $ 80.14 $ 134.41 $ 191.46 $ 312.51
EQ/Capital Guardian U.S. Equity $ 80.14 $ 134.41 $ 191.46 $ 312.51
EQ/Emerging Markets Equity $ 88.58 $ 159.43 $ 232.61 $ 394.53
EQ/Equity 500 Index $ 73.79 $ 115.28 $ 159.46 $ 245.90
EQ/Evergreen Omega $ 80.14 $ 134.41 $ 191.46 $ 312.51
EQ/FI Mid Cap $ 80.64 $ 135.90 $ 193.92 $ 317.54
EQ/FI Small/Mid Cap Value $ 81.63 $ 138.86 $ 198.83 $ 327.51
EQ/High Yield $ 77.36 $ 126.07 $ 177.57 $ 283.90
EQ/International Equity Index $ 81.63 $ 138.86 $ 198.83 $ 327.51
EQ/J.P. Morgan Core Bond $ 78.65 $ 129.95 $ 184.04 $ 297.29
EQ/Janus Large Cap Growth $ 82.12 $ 140.34 $ 201.28 $ 332.46
EQ/Lazard Small Cap Value $ 81.63 $ 138.86 $ 198.83 $ 327.51
EQ/Marsico Focus $ 82.12 $ 140.34 $ 201.28 $ 332.46
EQ/Mercury Basic Value Equity $ 80.14 $ 134.41 $ 191.46 $ 312.51
EQ/MFS Emerging Growth Companies $ 80.34 $ 135.01 $ 192.45 $ 314.53
EQ/MFS Investors Trust $ 80.14 $ 134.41 $ 191.46 $ 312.51
EQ/MFS Research $ 80.14 $ 134.41 $ 191.46 $ 312.51
EQ/Putnam Growth & Income Value $ 80.14 $ 134.41 $ 191.46 $ 312.51
EQ/Putnam International Equity $ 83.12 $ 143.29 $ 206.16 $ 342.28
- ----------------------------------------------------------------------------------------------------
11
- ----------------------------------------------------------------------------------------------------
If you surrender your contract at the end of
each period shown,
the expenses would be:
1 year 3 years 5 years 10 years
- ----------------------------------------------------------------------------------------------------
EQ/Putnam Voyager $ 80.14 $ 134.41 $ 191.46 $ 312.51
EQ/Small Company Index $ 79.15 $ 131.44 $ 186.52 $ 302.39
- ----------------------------------------------------------------------------------------------------
FOR NQ CONTRACTS AND ALL SERIES 200 TRUSTEED CONTRACTS:
- ----------------------------------------------------------------------------------------------------
If you surrender your contract at the end of
each period shown,
the expenses would be:
1 year 3 years 5 years 10 years
- ----------------------------------------------------------------------------------------------------
AXA Premier VIP Core Bond $ 80.14 $ 134.41 $ 191.46 $ 277.88
AXA Premier VIP Health Care $ 89.07 $ 160.89 $ 234.99 $ 367.56
AXA Premier VIP International Equity $ 88.58 $ 159.43 $ 232.61 $ 362.79
AXA Premier VIP Large Cap Core Equity $ 84.11 $ 146.24 $ 211.01 $ 318.75
AXA Premier VIP Large Cap Growth $ 84.11 $ 146.24 $ 211.01 $ 318.75
AXA Premier VIP Large Cap Value $ 84.11 $ 146.24 $ 211.01 $ 318.75
AXA Premier VIP Small/Mid Cap Growth $ 86.59 $ 153.58 $ 223.07 $ 343.47
AXA Premier VIP Small/Mid Cap Value $ 86.59 $ 153.58 $ 223.07 $ 343.47
AXA Premier VIP Technology $ 89.07 $ 160.89 $ 234.99 $ 367.56
EQ/Aggressive Stock $ 74.78 $ 118.28 $ 164.52 $ 219.99
EQ/Alliance Common Stock $ 74.78 $ 118.28 $ 164.52 $ 219.99
EQ/Alliance Global $ 79.15 $ 131.44 $ 186.52 $ 267.39
EQ/Alliance Growth and Income $ 76.96 $ 124.88 $ 175.57 $ 243.96
EQ/Alliance Growth Investors $ 76.96 $ 124.88 $ 175.57 $ 243.96
EQ/Alliance Intermediate Government Securities $ 76.86 $ 124.58 $ 175.07 $ 242.88
EQ/Alliance International $ 81.63 $ 138.86 $ 198.83 $ 293.40
EQ/Alliance Money Market $ 74.78 $ 118.28 $ 164.52 $ 219.99
EQ/Alliance Premier Growth $ 82.12 $ 140.34 $ 201.28 $ 298.52
EQ/Alliance Quality Bond $ 76.67 $ 123.98 $ 174.07 $ 240.72
EQ/Alliance Small Cap Growth $ 78.75 $ 130.25 $ 184.53 $ 263.17
EQ/Alliance Technology $ 82.12 $ 140.34 $ 201.28 $ 298.52
EQ/AXP New Dimensions $ 80.14 $ 134.41 $ 191.46 $ 277.88
EQ/AXP Strategy Aggressive $ 80.64 $ 135.90 $ 193.92 $ 283.08
EQ/Balanced $ 74.78 $ 118.28 $ 164.52 $ 219.99
EQ/Bernstein Diversified Value $ 80.14 $ 134.41 $ 191.46 $ 277.88
EQ/Calvert Socially Responsible $ 81.13 $ 137.38 $ 196.38 $ 288.25
EQ/Capital Guardian International $ 82.62 $ 141.82 $ 203.72 $ 303.62
EQ/Capital Guardian Research $ 80.14 $ 134.41 $ 191.46 $ 277.88
EQ/Capital Guardian U.S. Equity $ 80.14 $ 134.41 $ 191.46 $ 277.88
EQ/Emerging Markets Equity $ 88.58 $ 159.43 $ 232.61 $ 362.79
EQ/Equity 500 Index $ 73.79 $ 115.28 $ 159.46 $ 208.92
EQ/Evergreen Omega $ 80.14 $ 134.41 $ 191.46 $ 277.88
EQ/FI Mid Cap $ 80.64 $ 135.90 $ 193.92 $ 283.08
EQ/FI Small/Mid Cap Value $ 81.63 $ 138.86 $ 198.83 $ 293.40
EQ/High Yield $ 77.36 $ 126.07 $ 177.57 $ 248.26
EQ/International Equity Index $ 81.63 $ 138.86 $ 198.83 $ 293.40
EQ/J.P. Morgan Core Bond $ 78.65 $ 129.95 $ 184.04 $ 262.11
EQ/Janus Large Cap Growth $ 82.12 $ 140.34 $ 201.28 $ 298.52
EQ/Lazard Small Cap Value $ 81.63 $ 138.86 $ 198.83 $ 293.40
EQ/Marsico Focus $ 82.12 $ 140.34 $ 201.28 $ 298.52
EQ/Mercury Basic Value Equity $ 80.14 $ 134.41 $ 191.46 $ 277.88
EQ/MFS Emerging Growth Companies $ 80.34 $ 135.01 $ 192.45 $ 279.96
EQ/MFS Investors Trust $ 80.14 $ 134.41 $ 191.46 $ 277.88
EQ/MFS Research $ 80.14 $ 134.41 $ 191.46 $ 277.88
EQ/Putnam Growth & Income Value $ 80.14 $ 134.41 $ 191.46 $ 277.88
EQ/Putnam International Equity $ 83.12 $ 143.29 $ 206.16 $ 308.69
EQ/Putnam Voyager $ 80.14 $ 134.41 $ 191.46 $ 277.88
EQ/Small Company Index $ 79.15 $ 131.44 $ 186.52 $ 267.39
- ----------------------------------------------------------------------------------------------------
12
IF YOU DO NOT SURRENDER YOUR CONTRACT AT THE END OF EACH PERIOD SHOWN, THE
EXPENSES WOULD BE: FOR ALL SERIES 100 AND 200 CONTRACTS:
- ----------------------------------------------------------------------------------------------------
If you surrender your contract at the end of
each period shown,
the expenses would be:
1 year 3 years 5 years 10 years
- ----------------------------------------------------------------------------------------------------
AXA Premier VIP Core Bond $ 24.78 $ 76.22 $ 130.30 $ 277.88
AXA Premier VIP Health Care $ 34.22 $ 104.29 $ 176.59 $ 367.56
AXA Premier VIP International Equity $ 33.70 $ 102.75 $ 174.06 $ 362.79
AXA Premier VIP Large Cap Core Equity $ 28.97 $ 88.76 $ 151.09 $ 318.75
AXA Premier VIP Large Cap Growth $ 28.97 $ 88.76 $ 151.09 $ 318.75
AXA Premier VIP Large Cap Value $ 28.97 $ 88.76 $ 151.09 $ 318.75
AXA Premier VIP Small/Mid Cap Growth $ 31.60 $ 96.55 $ 163.91 $ 343.47
AXA Premier VIP Small/Mid Cap Value $ 31.60 $ 96.55 $ 163.91 $ 343.47
AXA Premier VIP Technology $ 34.22 $ 104.29 $ 176.59 $ 367.56
EQ/Aggressive Stock $ 19.11 $ 59.12 $ 101.65 $ 219.99
EQ/Alliance Common Stock $ 19.11 $ 59.12 $ 101.65 $ 219.99
EQ/Alliance Global $ 23.73 $ 73.07 $ 125.04 $ 267.39
EQ/Alliance Growth and Income $ 21.42 $ 66.11 $ 113.40 $ 243.96
EQ/Alliance Growth Investors $ 21.42 $ 66.11 $ 113.40 $ 243.96
EQ/Alliance Intermediate Government Securities $ 21.32 $ 65.80 $ 112.87 $ 242.88
EQ/Alliance International $ 26.35 $ 80.94 $ 138.14 $ 293.40
EQ/Alliance Money Market $ 19.11 $ 59.12 $ 101.65 $ 219.99
EQ/Alliance Premier Growth $ 26.88 $ 82.51 $ 140.74 $ 298.52
EQ/Alliance Quality Bond $ 21.11 $ 65.16 $ 111.80 $ 240.72
EQ/Alliance Small Cap Growth $ 23.31 $ 71.81 $ 122.93 $ 263.17
EQ/Alliance Technology $ 26.88 $ 82.51 $ 140.74 $ 298.52
EQ/AXP New Dimensions $ 24.78 $ 76.22 $ 130.30 $ 277.88
EQ/AXP Strategy Aggressive $ 25.30 $ 77.80 $ 132.92 $ 283.08
EQ/Balanced $ 19.11 $ 59.12 $ 101.65 $ 219.99
EQ/Bernstein Diversified Value $ 24.78 $ 76.22 $ 130.30 $ 277.88
EQ/Calvert Socially Responsible $ 25.83 $ 79.37 $ 135.53 $ 288.25
EQ/Capital Guardian International $ 27.40 $ 84.07 $ 143.34 $ 303.62
EQ/Capital Guardian Research $ 24.78 $ 76.22 $ 130.30 $ 277.88
EQ/Capital Guardian U.S. Equity $ 24.78 $ 76.22 $ 130.30 $ 277.88
EQ/Emerging Markets Equity $ 33.70 $ 102.75 $ 174.06 $ 362.79
EQ/Equity 500 Index $ 18.06 $ 55.94 $ 96.27 $ 208.92
EQ/Evergreen Omega $ 24.78 $ 76.22 $ 130.30 $ 277.88
EQ/FI Mid Cap $ 25.30 $ 77.80 $ 132.92 $ 283.08
EQ/FI Small/Mid Cap Value $ 26.35 $ 80.94 $ 138.14 $ 293.40
EQ/High Yield $ 21.84 $ 67.38 $ 115.52 $ 248.26
EQ/International Equity Index $ 26.35 $ 80.94 $ 138.14 $ 293.40
EQ/J.P. Morgan Core Bond $ 23.20 $ 71.49 $ 122.40 $ 262.11
EQ/Janus Large Cap Growth $ 26.88 $ 82.51 $ 140.74 $ 298.52
EQ/Lazard Small Cap Value $ 26.35 $ 80.94 $ 138.14 $ 293.40
EQ/Marsico Focus $ 26.88 $ 82.51 $ 140.74 $ 298.52
EQ/Mercury Basic Value Equity $ 24.78 $ 76.22 $ 130.30 $ 277.88
EQ/MFS Emerging Growth Companies $ 24.99 $ 76.85 $ 131.35 $ 279.96
EQ/MFS Investors Trust $ 24.78 $ 76.22 $ 130.30 $ 277.88
EQ/MFS Research $ 24.78 $ 76.22 $ 130.30 $ 277.88
EQ/Putnam Growth & Income Value $ 24.78 $ 76.22 $ 130.30 $ 277.88
EQ/Putnam International Equity $ 27.93 $ 85.64 $ 145.93 $ 308.69
EQ/Putnam Voyager $ 24.78 $ 76.22 $ 130.30 $ 277.88
EQ/Small Company Index $ 23.73 $ 73.07 $ 125.04 $ 267.39
- ----------------------------------------------------------------------------------------------------
(1) The amount accumulated from the $1,000 contribution could not be paid in the
form of an annuity at the end of any of the periods shown in the examples.
This is because if the amount applied to purchase an annuity payout option
is less than $2,000, or the initial payment is less than $20, we may pay the
amount to you in a single sum instead of as payments under an annuity payout
option. See "Accessing your money," in your prospectus.
(2) These expenses also apply to a QP IRA with the number 119331 in the lower
left corner of the first page of your contract, or those QP IRA contracts
issued in Oregon.
(3) These expenses apply only to a QP IRA with the number 92 QPI in the lower
left corner of the first page of your contract.
13
IF YOU ELECT A VARIABLE ANNUITY PAYOUT OPTION:
Assuming an annuity payout option could be issued, (see note (1) above), and you
elect a variable annuity payout option, the expenses shown in the above examples
of "If you do not surrender your contract" would, in each case, be increased by
$5.44 based on the average amount applied to annuity payout options in 2001. See
"Annuity administrative fee" under "Charges and expenses" in your prospectus.
(5) DISRUPTIVE TRANSFER ACTIVITY
The following reflects Equitable's current policy with regard to market
timing-related transaction requests.
You should note that the EQUI-VEST(R) contracts are not designed for
professional "market timing" organizations, or other organizations or
individuals engaging in a market timing strategy, making programmed transfers,
frequent transfers or transfers that are large in relation to the total assets
of the underlying portfolio. These kinds of strategies and transfer activities
are disruptive to the underlying portfolios in which the variable investment
options invest. If we determine that your transfer patterns among the variable
investment options are disruptive to the underlying portfolios, we may, among
other things, restrict the availability of personal telephone requests,
facsimile transmissions, automated telephone services, Internet services or any
electronic transfer services. We may also refuse to act on transfer instructions
of an agent acting under a power of attorney who is acting on behalf of one or
more owners. In making these determinations, we may consider the combined
transfer activity of annuity contracts and life insurance policies that we
believe are under common ownership, control or direction.
We currently consider transfers into and out of (or vice versa) the same
variable investment option within a five business day period as potentially
disruptive transfer activity. In order to prevent disruptive activity, we
monitor the frequency of transfers, including the size of transfers in relation
to portfolio assets, in each underlying portfolio, and we take appropriate
action, which may include the actions described above to restrict availability
of voice, fax and automated transaction services, when we consider the activity
of owners to be disruptive. We currently provide a letter to owners who have
engaged in such activity of our intention to restrict such services. However, we
may not continue to provide such letters. We may also, in our sole discretion
and without further notice, change what we consider disruptive transfer
activity, as well as change our procedures to restrict this activity.
(6) MINIMUM DISTRIBUTION WITHDRAWALS
We do not impose a withdrawal charge on minimum distribution withdrawals that
are calculated based on the proposed revisions to the minimum distribution rules
and your EQUI-VEST(R) contract account value. (See "Required minimum
distributions" in "Tax information" later in this Prospectus.) The minimum
distribution withdrawal will be taken into account in determining if any
subsequent withdrawal taken in the same contract year exceeds the 10% free
withdrawal amount.
(7) ANNUAL ADMINISTRATIVE CHARGE
We currently waive the annual administrative charge that would otherwise be
deducted in the next contract year under any individually owned EQUI-VEST(R)
contract/certificate having an account value that, when combined with the
account value of other EQUI-VEST(R) contracts/certificates owned by the same
person, exceeds $100,000 in the aggregate (as determined in February of each
year). This does not apply to EQUI-VEST(R) contracts/certificates owned by
different members of the same household. We may change or discontinue this
practice at any time without prior notice.
(8) OUR BUSINESS DAY
Our business day generally is any day on which the New York Stock Exchange is
open for trading. A business day does not include any day we choose not to open
due to emergency conditions. We may also close early due to emergency
conditions. Our business day generally ends at 4:00 p.m. Eastern time for
purposes of determining the date when contributions are applied and any other
transaction requests are processed. Contributions will be applied and any other
transaction requests will be processed when they are received along with all the
required information unless another date applies as indicated below.
o If your contribution, transfer, or any other transaction request, containing
all the required information, reaches us on a non-business day or after the
close of the business day, we will use the next business day.
o When a charge is to be deducted on a contract date anniversary that is a
non-business day, we will deduct the charge on the next business day.
o Quarterly rebalancing will be processed on a calendar year basis and
semi-annual or annual rebalancing will be processed on the first business
day of the month. Rebalancing will not be done retroactively.
(9) PAYMENT OF DEATH BENEFIT
The death benefit is equal to the greater of (i) the account value (without
adjustment for any otherwise applicable negative market value adjustment) as of
the date we receive satisfactory proof of the annuitant's death, any required
instructions for the method of payment, information and
14
forms necessary to effect payment or (ii) the "minimum death benefit." The
minimum death benefit is equal to your total contributions, less withdrawals and
any withdrawal charges, and any taxes that apply (and less any outstanding loan
balances plus accrued interest in the case of a TSA or Corporate Trusteed
contract).
(10) TAX INFORMATION
The discussion in the Prospectus is amended to reflect changes due to the
Economic Growth and Tax Relief Reconciliation Act of 2001, and proposed
revisions to the proposed required minimum distribution Treasury Regulations.
HOW YOU CAN CONTRIBUTE TO YOUR SEP AND SARSEP CONTRACT
Contract type Source of contributions
SEP o Employer.
o Eligible rollover distributions from other traditional IRAs,
403(b) plans, qualified plans and governmental EDC plans.
SARSEP o Employer remitted employee salary reduction and/or non-
elective employer contributions (pre 1997 plans only).
o Additional "catch-up" contributions.
o Eligible rollover distributions from other traditional IRAs,
403(b) plans, qualified plans and governmental EDC plans.
Contract type Limitations on contributions
SEP o Annual employer contributions up to the lesser of $40,000
or 25% of employee compensation.
o Limits on contributions after age 70 1/2.
SARSEP o Annual employer contributions up to the lesser of $40,000 or
25% of employee compensation.
o Maximum salary reduction contribution is $11,000 for 2002.
o If plan permits, an individual at least age 50 at any time
during 2002 can make up to $1,000 additional salary reduction
contributions.
o Limits on contributions after age 70 1/2.
FOR ALL CONTRACTS:
ADDITIONAL "SAVER'S CREDIT" FOR SALARY REDUCTION CONTRIBUTIONS TO CERTAIN PLANS
OR A TRADITIONAL IRA OR ROTH IRA
Beginning in 2002, you may be eligible for a nonrefundable income tax credit for
salary reduction contributions you make to a 401(k) plan, 403(b) TSA,
governmental 457(b) plan, SIMPLE IRA, or SARSEP IRA, as well as contributions
you make to a traditional IRA or Roth IRA. If you qualify, you may take this
credit even though your salary reduction contribution is already excluded from
tax or your traditional IRA contribution is already fully or partially
deductible. To take advantage of this "saver's credit" you must be age 18 or
over before the end of 2002. You cannot be a full-time student or claimed as a
dependent on another's tax return, and your adjusted gross income cannot exceed
$50,000. The amount of the tax credit you can get varies from 10% of your
contribution to 50% of your contribution, and depends on your income tax filing
status and your adjusted gross income. The maximum annual contribution eligible
for the saver's credit is $2,000. If you and your spouse file a joint return,
and each of you qualifies, each is eligible for a maximum annual contribution of
$2,000. Your saver's credit may also be reduced if you take or have taken a
taxable distribution from any plan eligible for a saver's credit contribution --
even if you make a contribution to one plan and take the distribution from
another plan -- during the "testing period." The "testing period" begins two
years before the year for which you make the contribution and ends when your tax
return is due for the year for which you make contribution. Saver's-credit-
eligible contributions may be made to a 401(k) plan, 403(b) TSA, governmental
457(b) plan, SIMPLE IRA, or SARSEP IRA, as well as to a traditional IRA or Roth
IRA.
FOR EQUI-VEST(R) EMPLOYER SPONSORED RETIREMENT PROGRAMS:
QUALIFIED PLANS AND TAX-SHELTERED ANNUITY ARRANGEMENTS (TSAS)
QUALIFIED PLANS -- GENERAL CONTRIBUTIONS
The annual limit on contributions on behalf of an employee to all of the defined
contribution plans of an employer for plan years beginning after December 31,
2001 is the lesser of $40,000 or 100% of compensation or earned income.
Compensation over $200,000 in 2002 is disregarded. This amount may be further
adjusted for cost of living changes in future years.
"Salary reduction" or "elective deferral" contributions made under a 401(k) plan
or other cash or deferred arrangement are limited to $11,000 for 2002. This
amount is scheduled to increase until the limits reach $15,000 for 2006, and may
be further adjusted for cost of living changes in future years. This limit
applies to the total of all elective deferrals under all tax-favored plans in
which the individual participates, from all employers, for example, also
including salary reduction contributions under TSAs. If the plan permits, an
individual who is at least age 50 at any time during 2002 can make up to $1,000
additional salary reduction contributions for 2002.
15
TSAS -- CONTRIBUTIONS TO TSAS
The permissible annual contribution to the participant's TSA is calculated the
same way as contributions to a 401(k) plan, beginning with plan years beginning
after December 31, 2001:
o The annual limit on employer and employee contributions to defined
contribution plans is the lesser of $40,000 or 100% of compensation for
2002.
o The annual limit on all salary reduction or elective deferral contributions
under all employer plans you participate in is generally limited to $11,000
for 2002.
The salary reduction limit is schedule to increase by $1,000 annually until the
limits reach $15,000 in 2006. This limit may be further adjusted for cost of
living changes in future years.
Special provisions may allow certain participants with at least 15 years of
service to "catch-up" contributions to compensate for smaller contributions made
in previous years. In addition, if the plan permits, an individual who is at
least age 50 at any time during 2002 can make up to $1,000 additional salary
reduction contributions for 2002.
ROLLOVER OR DIRECT TRANSFER CONTRIBUTIONS
Beginning in 2002, eligible rollover distributions from 403(b) plans, 401(a)
qualified plans, governmental EDC plans and traditional IRAs may be rolled over
into other such plans. Therefore, you may be able to make rollover contributions
to your EQUI-VEST(R) TSA or qualified plan contract from these sources:
qualified plans, governmental EDC plans, other TSAs and 403(b) arrangements and
traditional IRAs.
The recipient plan must agree to take the distribution. Generally, you may make
a rollover contribution when you have a distributable event from an existing
qualified plan, TSA, or governmental EDC Plan as a result of your:
o termination of employment with the employer who provided the plan funds; or
o reaching age 591/2 even if you are still employed (except if you are a
participant of an EDC plan); or
o disability (special federal income tax definition).
You can roll over pre-tax funds from your traditional IRA to your qualified plan
or TSA at any time, subject to recipient plan approval.
ROLLOVERS OF AFTER-TAX CONTRIBUTIONS FROM CERTAIN ELIGIBLE RETIREMENT PLANS
Beginning in 2002, any after-tax contributions you have made to a qualified plan
or TSA (but not a governmental 457(b) plan) may be directly rolled over to
another qualified plan or TSA which agrees to do required separate accounting.
This can only be done in a direct rollover, not a rollover you do yourself.
Before you decide to roll over your payment to another employer plan, you should
check with the administrator of that plan about whether the plan accepts
rollovers and, if so, the types of distributions it accepts. You should also
check with the administrator of the receiving plan about any documents required
to be completed before it will accept a rollover.
DISTRIBUTIONS FROM QUALIFIED PLANS AND TSAS
You may roll over any "eligible rollover distribution" from a qualified plan or
TSA into another eligible retirement plan which agrees to accept the rollover.
You may roll over a distribution from a qualified plan or TSA to any of the
following: a qualified plan, a governmental EDC plan, a traditional IRA or a
TSA. A spousal beneficiary may also roll over death benefits to any of these.
The recipient plan must agree to take the distribution. If you are rolling over
from a qualified plan or TSA to a governmental EDC plan, the recipient
governmental EDC plan must agree to separately account for the rolled-over
funds.
Beginning in 2002, any after-tax contributions you have made to a qualified plan
or TSA only may be directly rolled over to another qualified plan or TSA which
agrees to do required separate accounting. This can only be done in a direct
rollover, not a rollover you do yourself. Also beginning in 2002, you may roll
over any after-tax contributions you have made to a qualified plan or TSA to a
traditional IRA (either in a direct rollover or a rollover you do yourself).
When the recipient plan is a traditional IRA, you are responsible for
recordkeeping and calculating the taxable amount of any distributions you take
from that traditional IRA. After-tax contributions may not be rolled into a
governmental EDC plan.
Unless we have been provided acceptable documentation for the amounts of any
after-tax contributions to your TSA or qualified plan contract, we assume that
all amounts distributed from your TSA or qualified plan contract are pre-tax,
and we withhold tax and report accordingly.
Before you decide to roll over your payment to another employer plan, you should
check with the administrator of that plan about whether the plan accepts
rollovers and, if so, the types of distributions it accepts. You should also
check with the administrator of the receiving plan about any documents required
to be completed before it will accept a rollover.
16
SIMPLIFIED EMPLOYEE PENSIONS (SEPS)
In 2002 an employer can annually contribute an amount for an employee up to the
lesser of $40,000 or 25% of compensation. This amount may be further adjusted
for cost of living changes in future years.
SIMPLE IRAS (SAVINGS INCENTIVE MATCH PLAN)
Salary reduction contributions to a SIMPLE IRA are limited to $7,000 in 2002.
This salary reduction limit is scheduled to increase by $1,000 annually until
the limits reach $10,000 in 2005. This limit may be further adjusted for cost of
living changes in future years.
If the plan permits, an individual at least age 50 at any time during 2002 can
make up to $500 additional salary contributions for 2002.
EDC PLANS (ALSO KNOWN AS 457(B) PLANS)
PUBLIC AND TAX-EXEMPT ORGANIZATION EMPLOYEE DEFERRED COMPENSATION PLANS
The rules that apply to tax-exempt employer EDC plans and governmental employer
EDC plans may differ.
An employer can fund its EDC plan in whole or in part with annuity contracts
purchased for participating employees and their beneficiaries. These employees
do not have to include in income the employer's contributions to purchase the
EDC contracts or any earnings until they actually receive funds from a
governmental EDC plan. The participants of a tax-exempt EDC plan may have to
include in income the employer contributions and any earnings when they are
entitled to receive funds from the EDC plan. The EDC plan funds are subject to
the claims of the employer's general creditors in an EDC plan maintained by a
tax-exempt employer. In an EDC plan maintained by a governmental employer, the
plan's assets must be held in trust for the exclusive benefit of employees. An
annuity contract can be a trust equivalent if the contract includes the trust
rules. Regardless of contract ownership, the EDC plan may permit the employee to
choose among various investment options.
CONTRIBUTION LIMITS. For both governmental and tax-exempt employer EDC plans,
the maximum contribution for 2002 is the lesser of $11,000 or 100% of
includible compensation.
Special rules may permit "catch-up" contributions during the three years
preceding normal retirement age under the EDC plan. If the plan provides for
catch-up contributions for any of the 3 years of service preceding the plan
retirement age, the maximum contribution for 2002 for an individual eligible to
make such catch-up contributions is twice the otherwise applicable dollar limit,
or $22,000 for 2002.
For governmental EDC plans only, if the plan permits, an individual at least age
50 at any time during 2002 can make up to $1,000 additional salary reduction
catch-up contributions. An individual must coordinate this "age 50" catch-up
with the other "last 3 years of service" catch up.
GOVERNMENTAL EMPLOYER EDC PLANS -- ROLLOVER CONTRIBUTIONS. Beginning in 2002,
eligible rollover distributions from 403(b) plans (TSAs), 401(a) qualified
plans, other governmental EDC plans and traditional IRAs may be rolled over into
other such plans. The recipient plan must agree to take the distribution. If the
source of the eligible rollover distribution is not a governmental EDC plan, and
the recipient plan is a governmental EDC plan, the recipient governmental EDC
plan must agree to separately account for the rolled-over funds.
Before you decide to roll over your payment to another employer plan, you should
check with the administrator of that plan about whether the plan accepts
rollovers and, if so, the types of distributions it accepts. You should also
check with the administrator of the receiving plan about any documents required
to be completed before it will accept a rollover. Distributions from a
governmental EDC plan are generally not subject to the additional 10-percent
federal income tax penalty for pre-age 591/2 distributions, which applies to
other types of retirement plans. If you roll over funds from an eligible
retirement plan which is not a governmental EDC plan (qualified plans, TSA, or
traditional IRA) into a governmental EDC plan, and you later take a distribution
from the recipient governmental EDC plan, those amounts generally remain subject
to the penalty.
WITHDRAWAL LIMITS: Income or gains on contributions under an EDC plan are
subject to federal income tax when amounts are distributed (governmental EDC
plan) or made available (tax-exempt EDC plan) to the employee or beneficiary.
TAX TREATMENT OF DISTRIBUTIONS -- TAX-EXEMPT EMPLOYER EDC PLANS. Distributions
to a tax-exempt EDC plan participant are characterized as "wages" for income tax
reporting and withholding purposes. No election out of withholding is possible.
See "Federal and state income tax withholding and information reporting."
Withholding on wages is the employer's responsibility. Distributions from an EDC
plan are not subject to FICA tax, if FICA tax was withheld by the employer when
wages were deferred.
Distributions from a tax-exempt EDC plan may not be rolled over to any other
eligible retirement plan.
TAX TREATMENT OF DISTRIBUTIONS -- GOVERNMENTAL EMPLOYER EDC PLANS. Beginning in
2002, the taxation of distributions from a governmental EDC plan is generally
the same as the tax treatment of distributions from qualified plans and TSAs
discussed in the Prospectus, that is amounts are generally not subject to tax
until actually distributed, and amounts may be subject to a 20% federal income
tax withholding. See "Federal and state income tax withholding and information
reporting" in your prospectus. However, distributions from a governmental EDC
plan are generally not subject to the additional 10-percent federal income tax
penalty for pre-age 591/2 distributions.
TAX-DEFERRED ROLLOVERS -- GOVERNMENTAL EMPLOYER EDC PLANS. Beginning in 2002, a
participant in a governmental EDC plan may be able to roll over an eligible
rollover distribution from the plan to a traditional IRA, qualified plan or TSA,
as well as to another governmental EDC plan. The recipient plan must agree to
take the distribution.
17
If you roll over funds from a governmental EDC plan into an eligible retirement
plan which is not a governmental EDC plan (qualified plan, TSA, or traditional
IRA), any subsequent distributions may be subject to the 10% federal income tax
penalty noted above. Before you decide to roll over your payment to another
employer plan, you should check with the administrator of that plan about
whether the plan accepts rollovers and, if so, the types of distributions it
accepts. You should also check with the administrator of the receiving plan
about any documents required to be completed before it will accept a rollover.
TRADITIONAL INDIVIDUAL RETIREMENT ANNUITIES (IRAS)
CONTRIBUTIONS
INCREASED LIMITS ON REGULAR CONTRIBUTIONS TO BOTH TYPES OF IRAS. The maximum
amount of regular contributions to all IRAs for any individual (including both
traditional and Roth IRAs) for 2002 has been increased from $2,000 to $3,000. If
the traditional IRA owner is at least age 50 but under age 701/2 at any time
during 2002 an additional catch-up contribution of up to $500 for 2002 may be
made. For Roth IRAs, an additional catch-up contribution of up to $500 for 2002
may be made if the Roth IRA owner is at least age 50 at any time during 2002.
If the traditional IRA owner is single and covered by a retirement plan during
any part of the taxable year, the deduction for traditional IRA contributions
phases out with AGI between $34,000 and $44,000 in 2002. If the traditional IRA
owner is married, files a joint return, and is covered by a retirement plan
during any part of the taxable year, the deduction for the traditional IRA
contributions phases out with AGI between $54,000 and $64,000 in 2002.
ROLLOVER CONTRIBUTIONS TO TRADITIONAL IRAS
Rollover contributions may be made to a traditional IRA (but not a Roth IRA)
from "eligible retirement plans" which include other traditional IRAs, qualified
plans, 403(b) arrangements ("TSAs") and beginning in 2002, governmental 457(b)
plans (also known as "governmental EDC plans").
Rollover contributions to traditional IRAs were historically limited to pre-tax
funds. Beginning in 2002, after-tax contributions to a qualified plan or TSA may
be rolled over to a traditional IRA (but not a Roth IRA). You should be aware
before you roll over any after-tax contributions that you are responsible for
calculating the taxable amount of any distributions you take from the
traditional IRA.
Before you decide to roll over your payment to another employer plan, you should
check with the administrator of that plan about whether the plan accepts
rollovers and, if so, the types of distributions it accepts. You should also
check with the administrator of the receiving plan about any documents required
to be completed before it will accept a rollover.
You should discuss with your tax advisor whether you should consider rolling
over funds from one type of tax-qualified retirement plan to another, because
the funds will generally be subject to the rules of the recipient plan and the
features of the current plan may no longer be available. For example,
distributions from a governmental 457(b) plan are generally not subject to the
additional 10-percent federal income tax penalty for pre-age 591/2
distributions. If you roll over funds from a governmental 457(b) plan into an
eligible retirement plan which is not a governmental 457(b) plan (such as a
traditional IRA), any subsequent distributions may be subject to this penalty.
ROLLOVER DISTRIBUTIONS FROM TRADITIONAL IRAS; ROLLOVERS BETWEEN ELIGIBLE
RETIREMENT PLANS
Historically, a rollover from a traditional IRA could only be made to a
qualified plan (or TSA) if the traditional IRA served as a "conduit" for only
qualified plan (or only TSA) funds. Beginning in 2002, these rules have been
substantially liberalized. Eligible rollover distributions from qualified plans,
TSAs, governmental 457(b) plans and traditional IRAs may be rolled over into
other such plans. Therefore, the following are eligible to receive tax-free
rollover distributions from a traditional IRA: another traditional IRA, a
qualified plan, a TSA, or a governmental 457(b) plan. A surviving spouse
beneficiary may roll over funds from the deceased spouse's traditional IRA into
these "eligible retirement plans."
After-tax contributions in a traditional IRA cannot be rolled over from your
traditional IRA into, or back into, a qualified plan, TSA or governmental 457(b)
plan.
The recipient eligible retirement plan must agree to take the distribution. An
eligible retirement plan is not legally required to accept a rollover. Before
you decide to roll over your distribution to another eligible retirement plan,
you should find out whether the plan accepts rollover distributions from other
plan types, and if so, the types of distributions it accepts as rollover
contributions. You should also find out about any documents that are required to
be completed before the receiving plan will accept a rollover. Check with the
administrator of the plan that is to receive your rollover prior to making the
rollover. If an eligible retirement plan accepts your rollover, the plan may
restrict subsequent distributions of the rollover amount or may require your
spouse's consent for any subsequent distribution. A subsequent distribution from
the plan that accepts your rollover may also be subject to different tax
treatment than distributions from your traditional IRA.
If you roll over a distribution from your traditional IRA into a governmental
457(b) plan, the recipient governmental 457(b) plan must agree to separately
account for the rolled-over funds. Even though distributions from a governmental
457(b) plan are generally not subject to the additional 10-percent federal
income tax penalty for pre-age 591/2 distributions, any subsequent distributions
from the governmental 457(b) plan attributable to the IRA funds rolled over
continue to be subject to the penalty.
18
REQUIRED MINIMUM DISTRIBUTIONS
HOW YOU CAN CALCULATE REQUIRED MINIMUM DISTRIBUTIONS. There are two approaches
to taking required minimum distributions--"account-based" or "annuity-based."
Account-based method. If you choose an account-based method, you divide the
value of your contract as of December 31st of the past calendar year by a number
corresponding to your age from an IRS table. This gives you the required minimum
distribution amount for that particular contract for that year. If your spouse
is your sole beneficiary and more than 10 years younger than you, the dividing
number you use may be from another IRS table and may produce a smaller lifetime
required minimum distribution amount. Regardless of the table used, the required
minimum distribution amount will vary each year as the account value and the
divisor change.
Annuity-based method. If you choose an annuity-based method, you do not have to
do annual calculations. You apply the account value to an annuity payout for
your life or the joint lives of you and a designated beneficiary, or for a
period certain not extending beyond applicable life expectancies.
If you initially choose an account-based method, you may be able to apply your
traditional IRA funds later to a life annuity-based payout, with any certain
period not exceeding remaining life expectancy.
(11) BENEFICIARY CONTINUATION OPTION (BCO)
Upon your death under a Traditional IRA, Roth IRA, QP IRA or TSA contract, your
beneficiary may generally elect to keep the contract in your name and receive
distributions under the contract instead of receiving the death benefit in a
single sum. In order to elect this option, the beneficiary must be an
individual. Certain trusts with only individual beneficiaries will be treated as
individuals. We require this election to be made within nine months following
the date we receive proof of your death and before any other inconsistent
election is made. We will not, process any beneficiary continuation option
election for which we have not received the election by December 15th of the
calendar year following the deceased contract owner's death. Beneficiaries who
do not make a timely election will not be eligible for the beneficiary
continuation option. As of the date we receive satisfactory proof of death, any
required instructions, information and forms necessary to effect the beneficiary
continuation option feature, we will increase the account value to equal the
minimum death benefit if such death benefit is greater than such account value.
The minimum amount that is required in order to elect the beneficiary
continuation option is $5,000 for each continuation beneficiary.
Under the beneficiary continuation option:
o the contract continues in your name for the benefit of your beneficiary.
o the beneficiary may make transfers among the investment options but no
additional contributions will be permitted.
o the minimum death benefit provision will no longer be in effect.
o the beneficiary may choose at any time to withdraw all or a portion of the
account value and no withdrawal charges will apply. Any partial withdrawal
must be at least $300.
o Upon the death of the beneficiary, the beneficiary named by the original
beneficiary has the option to either continue taking minimum distributions
based on the remaining life expectancy of the deceased beneficiary or to
receive any remaining interest in the contract in a lump sum. The option
elected will be processed (unless that beneficiary elects to continue the
payment method that was elected by the original beneficiary) when we receive
satisfactory proof of death, any required instructions for the method of
payment and any required information and forms necessary to effect payment.
Generally, payments will be made once a year to the beneficiary over the
beneficiary's life expectancy (determined in the calendar year after your death,
and determined on a term certain basis). These payments must begin no later than
December 31st of the calendar year after the year of your death. However, if you
die before your Required Beginning Date for Required Minimum Distributions as
discussed in "Tax Information" in the Prospectus, your beneficiary may choose
the "5-year rule" instead of annual payments over life expectancy. If your
beneficiary chooses this, your beneficiary may take withdrawals as desired, but
the entire account value must be fully withdrawn by December 31st of the 5th
calendar year after your death.
(12) CONDENSED FINANCIAL INFORMATION
The following tables set forth the unit values and number of units outstanding
at the year end for each variable investment option, except those options
offered for the first time after December 31, 2001. The tables also show the
total number of units outstanding for all contracts to which this supplement
relates.
19
SERIES 300 AND 400 CONTRACTS
- ------------------------------------------------------------------------------------------
For the years ending December 31,
-------------------------------------------------
1994 1995 1996 1997
- ------------------------------------------------------------------------------------------
EQ/AGGRESSIVE STOCK
Unit value $ 95.45 $ 123.95 $ 149.41 $ 163.33
Number of units outstanding (000's) 664 1,310 2,468 3,226
EQ/ALLIANCE COMMON STOCK
Unit value $ 97.03 $ 126.78 $ 155.42 $ 198.12
Number of units outstanding (000's) 948 1,989 3,457 4,765
EQ/ALLIANCE GLOBAL
Unit value $ 104.12 $ 122.06 $ 138.00 $ 151.87
Number of units outstanding (000's) 1,305 2,121 2,995 3,369
EQ/ALLIANCE GROWTH AND INCOME
Unit value $ 98.86 $ 121.02 $ 143.37 $ 179.30
Number of units outstanding (000's) 210 498 975 1,800
EQ/ALLIANCE GROWTH INVESTORS
Unit value $ 96.31 $ 120.08 $ 133.40 $ 153.69
Number of units outstanding (000's) 1,023 2,113 3,325 3,704
EQ/ALLIANCE INTERMEDIATE GOVERNMENT SECURITIES
Unit value $ 98.19 $ 109.80 $ 112.40 $ 118.98
Number of units outstanding (000's) 32 89 146 202
EQ/ALLIANCE INTERNATIONAL
Unit value -- $ 104.15 $ 112.83 $ 107.92
Number of units outstanding (000's) -- 141 763 968
EQ/ALLIANCE MONEY MARKET
Unit value $ 102.61 $ 107.04 $ 111.21 $ 115.66
Number of units outstanding (000's) 63 81 165 146
EQ/ALLIANCE PREMIER GROWTH
Unit value -- -- -- --
Number of units outstanding (000's) -- -- -- --
EQ/ALLIANCE QUALITY BOND
Unit value $ 93.87 $ 108.38 $ 112.65 $ 121.30
Number of units outstanding (000's) 53 135 196 283
EQ/ALLIANCE SMALL CAP GROWTH
Unit value -- -- -- $ 125.55
Number of units outstanding (000's) -- -- -- 488
EQ/ALLIANCE TECHNOLOGY
Unit value -- -- -- --
Number of units outstanding (000's) -- -- -- --
EQ/AXP NEW DIMENSIONS
Unit value -- -- -- --
Number of units outstanding (000's) -- -- -- --
EQ/AXP STRATEGY AGGRESSIVE
Unit value -- -- -- --
Number of units outstanding (000's) -- -- -- --
EQ/BALANCED
Unit value $ 91.64 $ 108.26 $ 119.26 $ 135.29
Number of units outstanding (000's) 289 386 548 655
EQ/BERNSTEIN DIVERSIFIED VALUE
Unit value -- -- -- --
Number of units outstanding (000's) -- -- -- --
EQ/CALVERT SOCIALLY RESPONSIBLE
Unit value -- -- -- --
Number of units outstanding (000's) -- -- -- --
EQ/CAPITAL GUARDIAN RESEARCH
Unit value -- -- -- --
Number of units outstanding (000's) -- -- -- --
EQ/CAPITAL GUARDIAN U.S. EQUITY
Unit value -- -- -- --
Number of units outstanding (000's) -- -- -- --
EQ/EMERGING MARKETS EQUITY
Unit value -- -- -- $ 79.41
Number of units outstanding (000's) -- -- -- 109
EQ/EQUITY 500 INDEX
Unit value $ 100.95 $ 135.94 $ 164.12 $ 214.66
Number of units outstanding (000's) 47 592 1,486 2,686
- ------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------
For the years ending December 31,
------------------------------------------------
1998 1999 2000 2001
- ------------------------------------------------------------------------------------------
EQ/AGGRESSIVE STOCK
Unit value $ 161.59 $ 189.44 $ 162.34 $ 120.13
Number of units outstanding (000's) 3,342 2,980 2,607 2,242
EQ/ALLIANCE COMMON STOCK
Unit value $ 252.88 $ 312.31 $ 264.88 $ 233.80
Number of units outstanding (000's) 5,808 6,502 6,233 5,579
EQ/ALLIANCE GLOBAL
Unit value $ 182.50 $ 249.93 $ 200.17 $ 157.88
Number of units outstanding (000's) 3,395 3,509 3,712 3,331
EQ/ALLIANCE GROWTH AND INCOME
Unit value $ 213.81 $ 250.31 $ 269.09 $ 262.05
Number of units outstanding (000's) 2,475 3,095 3,352 3,789
EQ/ALLIANCE GROWTH INVESTORS
Unit value $ 180.63 $ 225.59 $ 207.65 $ 179.41
Number of units outstanding (000's) 3,962 4,231 4,354 3,967
EQ/ALLIANCE INTERMEDIATE GOVERNMENT
SECURITIES
Unit value $ 126.48 $ 124.96 $ 134.60 $ 143.62
Number of units outstanding (000's) 314 360 309 587
EQ/ALLIANCE INTERNATIONAL
Unit value $ 117.72 $ 160.04 $ 121.54 $ 92.48
Number of units outstanding (000's) 971 926 1,028 945
EQ/ALLIANCE MONEY MARKET
Unit value $ 120.19 $ 124.47 $ 130.47 $ 133.66
Number of units outstanding (000's) 262 360 297 395
EQ/ALLIANCE PREMIER GROWTH
Unit value -- $ 116.36 $ 93.70 $ 70.28
Number of units outstanding (000's) -- 887 2,596 2,788
EQ/ALLIANCE QUALITY BOND
Unit value $ 130.07 $ 125.76 $ 138.33 $ 147.79
Number of units outstanding (000's) 557 622 566 899
EQ/ALLIANCE SMALL CAP GROWTH
Unit value $ 118.57 $ 149.64 $ 168.29 $ 144.40
Number of units outstanding (000's) 1,101 976 1,895 1,988
EQ/ALLIANCE TECHNOLOGY
Unit value -- -- $ 66.10 $ 49.27
Number of units outstanding (000's) -- -- 1,313 1,757
EQ/AXP NEW DIMENSIONS
Unit value -- -- $ 82.87 $ 69.07
Number of units outstanding (000's) -- -- 41 105
EQ/AXP STRATEGY AGGRESSIVE
Unit value -- -- $ 62.12 $ 40.77
Number of units outstanding (000's) -- -- 54 113
EQ/BALANCED
Unit value $ 157.63 $ 183.18 $ 178.32 $ 172.66
Number of units outstanding (000's) 752 854 846 1,334
EQ/BERNSTEIN DIVERSIFIED VALUE
Unit value -- -- -- $ 94.39
Number of units outstanding (000's) -- -- -- 1,544
EQ/CALVERT SOCIALLY RESPONSIBLE
Unit value -- $ 107.58 $ 103.06 $ 86.73
Number of units outstanding (000's) -- 4 15 33
EQ/CAPITAL GUARDIAN RESEARCH
Unit value -- $ 106.78 $ 111.59 $ 107.86
Number of units outstanding (000's) -- 8 44 95
EQ/CAPITAL GUARDIAN U.S. EQUITY
Unit value -- $ 101.64 $ 103.88 $ 100.43
Number of units outstanding (000's) -- 13 34 96
EQ/EMERGING MARKETS EQUITY
Unit value $ 57.18 $ 110.43 $ 65.32 $ 61.12
Number of units outstanding (000's) 217 590 926 850
EQ/EQUITY 500 INDEX
Unit value $ 271.24 $ 322.15 $ 287.40 $ 249.66
Number of units outstanding (000's) 3,805 4,579 4,346 4,083
- ------------------------------------------------------------------------------------------
20
SERIES 300 AND 400 CONTRACTS (CONTINUED)
- --------------------------------------------------------------------------------
For the years ending
December 31,
--------------------------------------
1994 1995 1996
- --------------------------------------------------------------------------------
EQ/EVERGREEN OMEGA
Unit value -- -- --
Number of units outstanding (000's) -- -- --
EQ/FI MID CAP
Unit value -- -- --
Number of units outstanding (000's) -- -- --
EQ/FI SMALL/MID CAP VALUE
Unit value -- -- --
Number of units outstanding (000's) -- -- --
EQ/HIGH YIELD
UNIT VALUE $ 95.88 $ 113.44 $ 137.53
Number of units outstanding (000's) 99 209 444
EQ/JANUS LARGE CAP GROWTH
Unit value -- -- --
Number of units outstanding (000's) -- -- --
EQ/MARSICO FOCUS
Unit value -- -- --
Number of units outstanding (000's) -- -- --
EQ/MERCURY BASIC VALUE EQUITY
Unit value -- -- --
Number of units outstanding (000's) -- -- --
EQ/MFS EMERGING GROWTH COMPANIES
Unit value -- -- --
Number of units outstanding (000's) -- -- --
EQ/MFS INVESTORS TRUST
Unit value -- -- --
Number of units outstanding (000's) -- -- --
EQ/MFS RESEARCH
Unit value -- -- --
Number of units outstanding (000's) -- -- --
EQ/PUTNAM GROWTH & INCOME VALUE
Unit value -- -- --
Number of units outstanding (000's) -- -- --
EQ/T. ROWE PRICE INTERNATIONAL STOCK
Unit value -- -- --
Number of units outstanding (000's) -- -- --
- --------------------------------------------------------------------------------
- -------------------------------------------------------------------------------------------------------
For the years ending December 31,
--------------------------------------------------------------
1997 1998 1999 2000 2001
- -------------------------------------------------------------------------------------------------------
EQ/EVERGREEN OMEGA
Unit value -- -- $ 106.57 $ 92.84 $ 76.01
Number of units outstanding (000's) -- -- 5 18 33
EQ/FI MID CAP
Unit value -- -- -- $ 99.98 $ 85.41
Number of units outstanding (000's) -- -- -- 86 420
EQ/FI SMALL/MID CAP VALUE
Unit value $ 118.06 $ 104.82 $ 105.28 $ 109.21 $ 112.05
Number of units outstanding (000's) 577 859 721 628 1,238
EQ/HIGH YIELD
UNIT VALUE $ 160.74 $ 150.42 $ 143.43 $ 129.28 $ 128.74
Number of units outstanding (000's) 831 1,164 998 800 770
EQ/JANUS LARGE CAP GROWTH
Unit value -- -- -- $ 83.95 $ 63.80
Number of units outstanding (000's) -- -- -- 165 464
EQ/MARSICO FOCUS
Unit value -- -- -- -- $ 105.89
Number of units outstanding (000's) -- -- -- -- --
EQ/MERCURY BASIC VALUE EQUITY
Unit value $ 115.97 $ 127.67 $ 149.82 $ 165.27 $ 172.07
Number of units outstanding (000's) 145 444 617 634 1,044
EQ/MFS EMERGING GROWTH COMPANIES
Unit value $ 121.34 $ 161.04 $ 275.93 $ 220.97 $ 143.76
Number of units outstanding (000's) 256 1,090 2,427 3,720 3,422
EQ/MFS INVESTORS TRUST
Unit value -- -- $ 104.48 $ 102.37 $ 84.85
Number of units outstanding (000's) -- -- 18 68 87
EQ/MFS RESEARCH
Unit value $ 115.01 $ 140.83 $ 171.06 $ 159.89 $ 123.32
Number of units outstanding (000's) 236 720 959 1,258 1,124
EQ/PUTNAM GROWTH & INCOME VALUE
Unit value $ 115.17 $ 128.20 $ 124.76 $ 131.45 $ 120.85
Number of units outstanding (000's) 250 581 648 521 532
EQ/T. ROWE PRICE INTERNATIONAL STOCK
Unit value $ 97.61 $ 109.49 $ 142.46 $ 114.30 $ 88.15
Number of units outstanding (000's) 387 671 765 871 896
- -------------------------------------------------------------------------------------------------------
21
SERIES 500 CONTRACTS
- ------------------------------------------------------------------------------------------------
For the years ending December 31,
------------------------------------------------
1998 1999 2000 2001
- ------------------------------------------------------------------------------------------------
EQ/AGGRESSIVE STOCK
Unit value $ 90.25 $ 105.69 $ 90.49 $ 66.89
Number of units outstanding (000's) 1 4 4 5
EQ/ALLIANCE COMMON STOCK
Unit value $102.87 $ 126.91 $ 107.53 $ 94.82
Number of units outstanding (000's) 5 19 24 27
EQ/ALLIANCE GLOBAL
Unit value $ 98.37 $ 134.30 $ 107.66 $ 84.81
Number of units outstanding (000's) -- 2 3 3
EQ/ALLIANCE GROWTH AND INCOME
Unit value $102.73 $ 120.13 $ 129.00 $ 125.48
Number of units outstanding (000's) 1 4 5 6
EQ/ALLIANCE GROWTH INVESTORS
Unit value $101.93 $ 127.16 $ 116.92 $ 100.91
Number of units outstanding (000's) 1 2 3 3
EQ/ALLIANCE INTERMEDIATE GOVERNMENT SECURITIES
Unit value $103.22 $ 101.96 $ 109.70 $ 116.92
Number of units outstanding (000's) -- -- -- --
EQ/ALLIANCE INTERNATIONAL
Unit value $ 93.00 $ 126.29 $ 95.81 $ 72.82
Number of units outstanding (000's) -- 1 1 1
EQ/ALLIANCE MONEY MARKET
Unit value $101.68 $ 105.20 $ 110.16 $ 112.74
Number of units outstanding (000's) -- -- -- --
EQ/ALLIANCE PREMIER GROWTH
Unit value -- $ 116.32 $ 93.56 $ 70.10
Number of units outstanding (000's) -- -- 1 2
EQ/ALLIANCE QUALITY BOND
Unit value $103.62 $ 100.08 $ 109.96 $ 117.34
Number of units outstanding (000's) -- -- -- --
EQ/ALLIANCE SMALL CAP GROWTH
Unit value $ 86.93 $ 109.59 $ 123.11 $ 105.52
Number of units outstanding (000's) 1 1 2 --
EQ/ALLIANCE TECHNOLOGY
Unit value -- -- $ 66.05 $ 49.18
Number of units outstanding (000's) -- -- 1 1
EQ/AXP NEW DIMENSIONS
Unit value -- -- $ 82.84 $ 68.97
Number of units outstanding (000's) -- -- -- --
EQ/AXP STRATEGY AGGRESSIVE
Unit value -- -- $ 62.10 $ 40.71
Number of units outstanding (000's) -- -- -- --
EQ/BALANCED
Unit value $102.39 $ 118.86 $ 115.59 $ 111.81
Number of units outstanding (000's) -- 2 2 4
EQ/BERNSTEIN DIVERSIFIED VALUE
Unit value -- -- -- $ 100.70
Number of units outstanding (000's) -- -- -- 1
EQ/CAPITAL GUARDIAN RESEARCH
Unit value -- $ 106.74 $ 111.42 $ 107.58
Number of units outstanding (000's) -- -- -- --
EQ/CAPITAL GUARDIAN U.S. EQUITY
Unit value -- $ 101.60 $ 103.72 $ 100.16
Number of units outstanding (000's) -- -- -- --
EQ/EMERGING MARKETS EQUITY
Unit value $ 81.40 $ 157.03 $ 92.78 $ 86.72
Number of units outstanding (000's) -- -- 1 1
EQ/EQUITY 500 INDEX
Unit value $103.68 $ 123.01 $ 109.62 $ 95.12
Number of units outstanding (000's) 2 9 10 11
- ------------------------------------------------------------------------------------------------
22
SERIES 500 CONTRACTS (CONCLUDED)
- ---------------------------------------------------------------------------------------
For the years ending December 31,
-----------------------------------------------
1998 1999 2000 2001
- ---------------------------------------------------------------------------------------
EQ/EVERGREEN OMEGA
Unit value -- $ 106.53 $ 93.33 $ 75.81
Number of units outstanding (000's) -- -- -- --
EQ/FI MID CAP
Unit value -- -- $ 99.95 $ 85.28
Number of units outstanding (000's) -- -- -- 13
EQ/FI SMALL/MID CAP VALUE
Unit value $ 82.78 $ 83.05 $ 86.06 $ 88.20
Number of units outstanding (000's) -- 1 1 1
EQ/HIGH YIELD
Unit value $ 89.20 $ 84.96 $ 76.49 $ 76.09
Number of units outstanding (000's) -- 1 1 1
EQ/JANUS LARGE CAP GROWTH
Unit value -- -- $ 83.92 $ 63.71
Number of units outstanding (000's) -- -- -- --
EQ/MARSICO FOCUS
Unit value -- -- -- $ 105.94
Number of units outstanding (000's) -- -- -- --
EQ/MERCURY BASIC VALUE EQUITY
Unit value $ 97.80 $ 114.64 $ 126.32 $ 131.37
Number of units outstanding (000's) -- 1 1 2
EQ/MFS EMERGING GROWTH COMPANIES
Unit value $103.41 $ 177.00 $ 141.58 $ 92.01
Number of units outstanding (000's) 1 6 9 9
EQ/MFS INVESTORS TRUST
Unit value -- $ 104.44 $ 102.22 $ 84.63
Number of units outstanding (000's) -- -- -- --
EQ/MFS RESEARCH
Unit value $ 98.99 $ 120.11 $ 112.14 $ 86.40
Number of units outstanding (000's) 1 3 3 4
EQ/PUTNAM GROWTH & INCOME VALUE
Unit value $100.48 $ 97.68 $ 102.80 $ 94.40
Number of units outstanding (000's) -- 1 1 2
EQ/T. ROWE PRICE INTERNATIONAL STOCK
Unit value $ 94.04 $ 122.22 $ 97.95 $ 75.46
Number of units outstanding (000's) -- 1 1 1
- ---------------------------------------------------------------------------------------
23
SERIES 100 AND 200 CONTRACTS
- -------------------------------------------------------------------------------------------------------
For the years ending December 31,
-------------------------------------------------
1992 1993 1994 1995
- -------------------------------------------------------------------------------------------------------
EQ/AGGRESSIVE STOCK
Unit value $ 48.30 $ 55.68 $ 52.88 $ 68.73
Number of units outstanding
(000's) 17,986 21,496 24,787 25,821
EQ/ALLIANCE COMMON STOCK
Unit value $ 104.63 $ 128.81 $ 124.32 $ 162.42
Number of units outstanding
(000's) 11,841 13,917 15,749 16,292
EQ/ALLIANCE GLOBAL
Unit value -- -- $ 104.12 $ 122.06
Number of units outstanding
(000's) -- -- 1,305 2,121
EQ/ALLIANCE GROWTH AND INCOME
Unit value -- -- $ 98.86 $ 121.02
Number of units outstanding
(000's) -- -- 210 498
EQ/ALLIANCE GROWTH INVESTORS
Unit value -- -- $ 96.31 $ 120.08
Number of units outstanding
(000's) -- -- 1,023 2,113
EQ/ALLIANCE INTERMEDIATE GOVERNMENT SECURITIES
Unit value -- -- $ 98.19 $ 109.80
Number of units outstanding
(000's) -- -- 32 89
EQ/ALLIANCE INTERNATIONAL
Unit value -- -- -- $ 104.15
Number of units outstanding
(000's) -- -- -- 141
EQ/ALLIANCE MONEY MARKET
Unit value $ 25.01 $ 25.41 $ 26.08 $ 27.22
Number of units outstanding
(000's) 1,201 1,065 1,000 1,021
EQ/ALLIANCE PREMIER GROWTH
Unit value -- -- -- --
Number of units outstanding
(000's) -- -- -- --
EQ/ALLIANCE QUALITY BOND
Unit value -- -- $ 93.87 $ 108.38
Number of units outstanding
(000's) -- -- 53 135
EQ/ALLIANCE SMALL CAP GROWTH
Unit value -- -- -- --
Number of units outstanding
(000's) -- -- -- --
EQ/ALLIANCE TECHNOLOGY
Unit value -- -- -- --
Number of units outstanding
(000's) -- -- -- --
EQ/AXP NEW DIMENSIONS
Unit value -- -- -- --
Number of units outstanding
(000's) -- -- -- --
EQ/AXP STRATEGY AGGRESSIVE
Unit value -- -- -- --
Number of units outstanding
(000's) -- -- -- --
EQ/BALANCED
Unit value $ 26.04 $ 28.85 $ 26.18 $ 30.92
Number of units outstanding
(000's) 25,975 31,259 32,664 30,212
EQ/BERNSTEIN DIVERSIFIED VALUE
Unit value -- -- -- --
Number of units outstanding
(000's) -- -- -- --
EQ/CALVERT SOCIALLY RESPONSIBLE
Unit Value -- -- -- --
Number of units outstanding
(000's) -- -- -- --
- -------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------
For the years ending December 31,
------------------------------------------------------------------------
1996 1997 1998 1999 2000 2001
- ------------------------------------------------------------------------------------------------------------------------
EQ/AGGRESSIVE STOCK
Unit value $ 82.91 $ 90.75 $ 89.92 $ 105.59 $ 90.70 $ 67.13
Number of units outstanding
(000's) 27,945 28,030 25,634 20,946 18,138 16,058
EQ/ALLIANCE COMMON STOCK
Unit value $ 199.05 $ 253.68 $ 323.75 $ 399.74 $ 339.28 $ 299.82
Number of units outstanding
(000's) 16,933 17,386 17,231 16,705 15,685 14,197
EQ/ALLIANCE GLOBAL
Unit value $ 138.00 $ 151.87 $ 182.50 $ 249.93 $ 200.17 $ 157.88
Number of units outstanding
(000's) 2,995 3,369 3,395 3,509 3,712 3,331
EQ/ALLIANCE GROWTH AND INCOME
Unit value $ 143.37 $ 179.30 $ 213.81 $ 250.31 $ 269.09 $ 262.05
Number of units outstanding
(000's) 975 1,800 2,475 3,095 3,352 3,789
EQ/ALLIANCE GROWTH INVESTORS
Unit value $ 133.40 $ 153.69 $ 180.63 $ 225.59 $ 207.65 $ 179.41
Number of units outstanding
(000's) 3,325 3,704 3,962 4,231 4,354 3,967
EQ/ALLIANCE INTERMEDIATE GOVERNMENT SECURITIES
Unit value $ 112.40 $ 118.98 $ 126.48 $ 124.96 $ 134.60 $ 143.62
Number of units outstanding
(000's) 146 202 314 360 309 587
EQ/ALLIANCE INTERNATIONAL
Unit value $ 112.83 $ 107.92 $ 117.72 $ 160.04 $ 121.54 $ 92.48
Number of units outstanding
(000's) 763 968 971 926 1,028 945
EQ/ALLIANCE MONEY MARKET
Unit value $ 28.28 $ 29.41 $ 30.55 $ 31.63 $ 33.15 $ 33.96
Number of units outstanding
(000's) 1,013 973 1,261 1,516 1,458 1,796
EQ/ALLIANCE PREMIER GROWTH
Unit value -- -- -- $ 116.36 $ 93.70 $ 70.28
Number of units outstanding
(000's) -- -- -- 887 2,596 2,788
EQ/ALLIANCE QUALITY BOND
Unit value $ 112.65 $ 121.30 $ 130.07 $ 125.76 $ 138.33 $ 147.79
Number of units outstanding
(000's) 196 283 557 622 566 899
EQ/ALLIANCE SMALL CAP GROWTH
Unit value -- $ 125.55 $ 118.57 $ 149.64 $ 168.29 $ 144.40
Number of units outstanding
(000's) -- 488 1,101 976 1,895 1,988
EQ/ALLIANCE TECHNOLOGY
Unit value -- -- -- -- $ 66.10 $ 49.27
Number of units outstanding
(000's) -- -- -- -- 1,313 1,757
EQ/AXP NEW DIMENSIONS
Unit value -- -- -- -- $ 82.87 $ 69.07
Number of units outstanding
(000's) -- -- -- -- 41 105
EQ/AXP STRATEGY AGGRESSIVE
Unit value -- -- -- -- $ 62.12 $ 40.77
Number of units outstanding
(000's) -- -- -- -- 54 113
EQ/BALANCED
Unit value $ 34.06 $ 38.66 $ 45.07 $ 52.39 $ 51.10 $ 49.61
Number of units outstanding
(000's) 28,319 26,036 24,361 22,434 20,413 19,822
EQ/BERNSTEIN DIVERSIFIED VALUE
Unit value -- -- -- -- -- $ 94.39
Number of units outstanding
(000's) -- -- -- -- -- 1,544
EQ/CALVERT SOCIALLY RESPONSIBLE
Unit Value -- -- -- $ 107.58 $ 103.06 $ 86.73
Number of units outstanding
(000's) -- -- -- 4 15 33
- ------------------------------------------------------------------------------------------------------------------------
24
SERIES 100 AND 200 CONTRACTS (CONCLUDED)
- -------------------------------------------------------------------------------------------------------
For the years ending December 31,
---------------------------------------------------------
1992 1993 1994 1995 1996
- -------------------------------------------------------------------------------------------------------
EQ/CAPITAL GUARDIAN RESEARCH
Unit value -- -- -- -- --
Number of units outstanding
(000's) -- -- -- -- --
EQ/CAPITAL GUARDIAN U.S. EQUITY
Unit value -- -- -- -- --
Number of units outstanding
(000's) -- -- -- -- --
EQ/EMERGING MARKETS EQUITY
Unit value -- -- -- -- --
Number of units outstanding
(000's) -- -- -- -- --
EQ/EQUITY 500 INDEX
Unit value -- -- $ 100.95 $ 135.94 $ 164.12
Number of units outstanding
(000's) -- -- 47 592 1,486
EQ/EVERGREEN OMEGA
Unit value -- -- -- -- --
Number of units outstanding
(000's) -- -- -- -- --
EQ/FI MID CAP
Unit value -- -- -- -- --
Number of units outstanding
(000's) -- -- -- -- --
EQ/FI SMALL/MID CAP VALUE
Unit value -- -- -- -- --
Number of units outstanding
(000's) -- -- -- -- --
EQ/HIGH YIELD
Unit value -- -- $ 95.88 $ 113.44 $ 137.53
Number of units outstanding
(000's) -- -- 99 209 444
EQ/JANUS LARGE CAP GROWTH
Unit value -- -- -- -- --
Number of units outstanding
(000's) -- -- -- -- --
EQ/MARSICO FOCUS
Unit value -- -- -- -- --
Number of units outstanding
(000's) -- -- -- -- --
EQ/MERCURY BASIC VALUE EQUITY
Unit value -- -- -- -- --
Number of units outstanding
(000's) -- -- -- -- --
EQ/MFS EMERGING GROWTH COMPANIES
Unit value -- -- -- -- --
Number of units outstanding
(000's) -- -- -- -- --
EQ/MFS INVESTORS TRUST
Unit value -- -- -- -- --
Number of units outstanding
(000's) -- -- -- -- --
EQ/MFS RESEARCH
Unit value -- -- -- -- --
Number of units outstanding
(000's) -- -- -- -- --
EQ/PUTNAM GROWTH & INCOME VALUE
Unit value -- -- -- -- --
Number of units outstanding
(000's) -- -- -- -- --
EQ/T. ROWE PRICE INTERNATIONAL STOCK
Unit value -- -- -- -- --
Number of units outstanding
(000's) -- -- -- -- --
- -------------------------------------------------------------------------------------------------------
- -------------------------------------------------------------------------------------------------------
For the years ending December 31,
--------------------------------------------------------------
1997 1998 1999 2000 2001
- -------------------------------------------------------------------------------------------------------
EQ/CAPITAL GUARDIAN RESEARCH
Unit value -- -- $ 106.78 $ 111.59 $ 107.86
Number of units outstanding
(000's) -- -- 8 44 95
EQ/CAPITAL GUARDIAN U.S. EQUITY
Unit value -- -- $ 101.64 $ 103.88 $ 100.43
Number of units outstanding
(000's) -- -- 13 34 96
EQ/EMERGING MARKETS EQUITY
Unit value $ 79.41 $ 57.18 $ 110.43 $ 65.32 $ 61.12
Number of units outstanding
(000's) 109 217 590 926 850
EQ/EQUITY 500 INDEX
Unit value $ 214.66 $ 271.24 $ 322.15 $ 287.40 $ 249.66
Number of units outstanding
(000's) 2,686 3,805 4,579 4,346 4,083
EQ/EVERGREEN OMEGA
Unit value -- -- $ 106.57 $ 92.84 $ 76.01
Number of units outstanding
(000's) -- -- 5 18 33
EQ/FI MID CAP
Unit value -- -- -- $ 99.98 $ 85.41
Number of units outstanding
(000's) -- -- -- 86 420
EQ/FI SMALL/MID CAP VALUE
Unit value $ 118.06 $ 104.82 $ 105.28 $ 109.21 $ 112.05
Number of units outstanding
(000's) 577 859 721 628 1,238
EQ/HIGH YIELD
Unit value $ 160.74 $ 150.42 $ 143.43 $ 129.28 $ 128.74
Number of units outstanding
(000's) 831 1,164 998 800 770
EQ/JANUS LARGE CAP GROWTH
Unit value -- -- -- $ 83.95 $ 63.90
Number of units outstanding
(000's) -- -- -- 165 464
EQ/MARSICO FOCUS
Unit value -- -- -- -- $ 105.94
Number of units outstanding
(000's) -- -- -- -- --
EQ/MERCURY BASIC VALUE EQUITY
Unit value $ 115.97 $ 127.97 $ 149.82 $ 165.27 $ 172.07
Number of units outstanding
(000's) 145 444 617 634 1,044
EQ/MFS EMERGING GROWTH COMPANIES
Unit value $ 121.34 $ 161.04 $ 275.93 $ 220.97 $ 143.76
Number of units outstanding
(000's) 256 1,090 2,427 3,720 3,422
EQ/MFS INVESTORS TRUST
Unit value -- -- $ 104.48 $ 102.37 $ 84.85
Number of units outstanding
(000's) -- -- 18 68 87
EQ/MFS RESEARCH
Unit value $ 115.01 $ 140.83 $ 171.06 $ 159.89 $ 123.32
Number of units outstanding
(000's) 236 720 959 1,258 1,124
EQ/PUTNAM GROWTH & INCOME VALUE
Unit value $ 115.17 $ 128.20 $ 124.76 $ 131.45 $ 120.85
Number of units outstanding
(000's) 250 581 648 521 532
EQ/T. ROWE PRICE INTERNATIONAL STOCK
Unit value $ 97.61 $ 109.49 $ 142.46 $ 114.30 $ 88.15
Number of units outstanding
(000's) 387 671 765 871 896
- -------------------------------------------------------------------------------------------------------
(13) EQUITABLE LIFE
We are The Equitable Life Assurance Society of the United States ("Equitable
Life"), a New York stock life insurance corporation. We have been doing business
since 1859. Equitable Life is a subsidiary of AXA Financial, Inc. (previously,
The Equitable Companies Incorporated). AXA, a French holding company for an
international group of insurance and related financial services companies, is
the sole shareholder of AXA Financial, Inc. As the sole shareholder, and under
its other arrangements with Equitable Life and Equitable Life's parent, AXA
exercises significant influence over the operations and capital structure of
Equitable Life and its parent. No company other than Equitable Life, however,
has any legal responsibility to pay amounts that Equitable Life owes under the
contract.
25
AXA Financial, Inc. and its consolidated subsidiaries managed approximately
481.0 billion in assets as of December 31, 2001. For over 100 years Equitable
Life has been among the largest insurance companies in the United States. We
are licensed to sell life insurance and annuities in all fifty states, the
District of Columbia, Puerto Rico, and the U.S. Virgin Islands. Our home office
is located at 1290 Avenue of the Americas, New York, N.Y. 10104.
(14) INVESTMENT PERFORMANCE
The tables below show the average annual total return of the variable investment
options. Average annual total return is the annual rate of growth that would be
necessary to achieve the ending value of a contribution invested in the variable
investment options for the periods shown.
The tables take into account all fees and charges under the contracts including
the withdrawal charge and annual administrative charge but do not reflect the
charges designed to approximate certain taxes that may be imposed on us such as
premium taxes in your state, or the annuity administrative fee, if applicable.
The performance shown reflects the highest charges applicable under any contract
to which this supplement applies.
The results shown under "length of option period" are based on the actual
historical investment experience of the variable investment option since its
inception. The results shown under "length of portfolio period" include some
periods when a variable investment option investing in the Portfolio had not yet
commenced operations. For those periods, we adjusted the results of the
portfolios to reflect the charges under the contracts that would have applied
had the investment option been available.
Finally, the results shown for the EQ/Alliance Money Market, EQ/Balanced,
EQ/Alliance Common Stock and EQ/Aggressive Stock options for periods before
those options were operated as part of a unit investment trust reflect the
results of the separate accounts that preceded them. The "Since portfolio
inception" figures for these options are based on the date of inception of the
preceding separate accounts. We have adjusted these results to reflect the fee
and expense structure in effect for Separate Account A as a unit investment
trust. See "The reorganization" in the SAI for additional information.
EQ Advisors Trust commenced operations on May 1, 1997. For periods prior to
October 18, 1999 the Alliance portfolios (other than EQ/Alliance Premier Growth
and EQ/Alliance Technology) were part of the Hudson River Trust. On October 18,
1999, these portfolios became corresponding portfolios of EQ Advisors Trust. In
each case, the performance shown is for the indicated EQ Advisors Trust
portfolio and any predecessors that it may have had.
AXA Premier VIP Trust commenced operations on December 31, 2001 and performance
information for these portfolios is not available as of the date of this
prospectus.
All rates of return presented are time-weighted and include reinvestment of
investment income, including interest and dividends.
THE PERFORMANCE INFORMATION SHOWN BELOW AND THE PERFORMANCE INFORMATION THAT WE
ADVERTISE REFLECTS PAST PERFORMANCE AND DOES NOT INDICATE HOW THE VARIABLE
INVESTMENT OPTIONS MAY PERFORM IN THE FUTURE. SUCH PERFORMANCE ALSO DOES NOT
REPRESENT THE RESULTS EARNED BY ANY PARTICULAR INVESTOR. YOUR RESULTS WILL
DIFFER.
26
EQUI-VEST(R) EMPLOYER SPONSORED
TABLE
AVERAGE ANNUAL TOTAL RETURN UNDER A CONTRACT SURRENDERED ON DECEMBER 31, 2001
- -----------------------------------------------------------------------------------------------------------
LENGTH OF OPTION PERIOD
-----------------------------------------------------------
SINCE OPTION
VARIABLE INVESTMENT OPTIONS 1 YEAR 5 YEARS 10 YEARS INCEPTION+**
- -----------------------------------------------------------------------------------------------------------
EQ/Aggressive Stock (30.05)% (7.09)% 1.01% 8.50%
- -----------------------------------------------------------------------------------------------------------
EQ/Alliance Common Stock (16.56)% 6.39% 10.02% 12.35%
- -----------------------------------------------------------------------------------------------------------
EQ/Alliance Global (25.44)% 0.24% -- 4.31%
- -----------------------------------------------------------------------------------------------------------
EQ/Alliance Growth and Income (7.94)% 10.86% -- 11.46%
- -----------------------------------------------------------------------------------------------------------
EQ/Alliance Growth Investors (18.32)% 3.77% -- 6.10%
- -----------------------------------------------------------------------------------------------------------
EQ/Alliance Intermediate Government Securities 0.87% 2.28% -- 2.76%
- -----------------------------------------------------------------------------------------------------------
EQ/Alliance International (28.07)% (6.68)% -- (3.38)%
- -----------------------------------------------------------------------------------------------------------
EQ/Alliance Money Market (3.16)% 0.93% 1.06% 3.60%
- -----------------------------------------------------------------------------------------------------------
EQ/Alliance Premier Growth (29.09)% -- -- (17.40)%
- -----------------------------------------------------------------------------------------------------------
EQ/Alliance Quality Bond 0.99% 2.88% -- 3.01%
- -----------------------------------------------------------------------------------------------------------
EQ/Alliance Small Cap Growth (18.88)% -- -- 3.24%
- -----------------------------------------------------------------------------------------------------------
EQ/Alliance Technology (29.54)% -- -- (30.86)%
- -----------------------------------------------------------------------------------------------------------
EQ/AXP New Dimensions (21.21)% -- -- (27.36)%
- -----------------------------------------------------------------------------------------------------------
EQ/AXP Strategy Aggressive (37.95)% -- -- (51.07)%
- -----------------------------------------------------------------------------------------------------------
EQ/Balanced (8.47)% 5.36% 4.19% 7.21%
- -----------------------------------------------------------------------------------------------------------
EQ/Bernstein Diversified Value (3.85)% -- -- (5.00)%
- -----------------------------------------------------------------------------------------------------------
EQ/Calvert Socially Responsible (20.45)% -- -- (8.16)%
- -----------------------------------------------------------------------------------------------------------
EQ/Capital Guardian International (26.22)% -- -- (3.20)%
- -----------------------------------------------------------------------------------------------------------
EQ/Capital Guardian Research (8.62)% -- -- (0.07)%
- -----------------------------------------------------------------------------------------------------------
EQ/Capital Guardian U.S. Equity (8.61)% -- -- (2.86)%
- -----------------------------------------------------------------------------------------------------------
EQ/Emerging Markets Equity (11.55)% -- -- (14.41)%
- -----------------------------------------------------------------------------------------------------------
EQ/Equity 500 Index (17.88)% 6.65% -- 11.65%
- -----------------------------------------------------------------------------------------------------------
EQ/Evergreen Omega (22.60)% -- -- (14.65)%
- -----------------------------------------------------------------------------------------------------------
EQ/FI Mid Cap (19.25)% -- -- (14.83)%
- -----------------------------------------------------------------------------------------------------------
EQ/FI Small/Mid Cap Value (3.01)% -- -- (2.15)%
- -----------------------------------------------------------------------------------------------------------
EQ/High Yield (5.86)% (4.31)% -- 1.41%
- -----------------------------------------------------------------------------------------------------------
EQ/Janus Large Cap Growth (28.15)% -- -- (31.56)%
- -----------------------------------------------------------------------------------------------------------
EQ/Lazard Small Cap Value 9.80% -- -- (3.50)%
- -----------------------------------------------------------------------------------------------------------
EQ/Mercury Basic Value Equity (1.58)% -- -- 8.39%
- -----------------------------------------------------------------------------------------------------------
EQ/MFS Emerging Growth Companies (38.50)% -- -- 3.99%
- -----------------------------------------------------------------------------------------------------------
EQ/MFS Investors Trust (21.64)% -- -- (9.96)%
- -----------------------------------------------------------------------------------------------------------
EQ/MFS Research (27.09)% -- -- 0.52%
- -----------------------------------------------------------------------------------------------------------
EQ/Putnam Growth & Income Value (13.09)% -- -- 0.10%
- -----------------------------------------------------------------------------------------------------------
EQ/Putnam International Equity (26.81)% -- -- (3.01)%
- -----------------------------------------------------------------------------------------------------------
EQ/Putnam Voyager (29.55)% -- -- (3.12)%
- -----------------------------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------------------
LENGTH OF PORTFOLIO PERIOD
-----------------------------------------------------------
SINCE
PORTFOLIO
VARIABLE INVESTMENT OPTIONS 3 YEARS 5 YEARS 10 YEARS INCEPTION+***
- -----------------------------------------------------------------------------------------------------------
EQ/Aggressive Stock (12.33)% (7.09)% 1.01% 8.50%
- -----------------------------------------------------------------------------------------------------------
EQ/Alliance Common Stock (5.46)% 6.39% 10.02% 9.32%
- -----------------------------------------------------------------------------------------------------------
EQ/Alliance Global (7.60)% 0.24% 5.83% 5.87%
- -----------------------------------------------------------------------------------------------------------
EQ/Alliance Growth and Income 4.28% 10.86% -- 10.57%
- -----------------------------------------------------------------------------------------------------------
EQ/Alliance Growth Investors (3.10)% 3.77% 6.09% 9.43%
- -----------------------------------------------------------------------------------------------------------
EQ/Alliance Intermediate Government Securities 1.45% 2.28% 2.48% 3.23%
- -----------------------------------------------------------------------------------------------------------
EQ/Alliance International (10.63)% (6.68)% -- (2.34)%
- -----------------------------------------------------------------------------------------------------------
EQ/Alliance Money Market 0.73% 0.93% 1.06% 3.60%
- -----------------------------------------------------------------------------------------------------------
EQ/Alliance Premier Growth -- -- -- (15.14)%
- -----------------------------------------------------------------------------------------------------------
EQ/Alliance Quality Bond 1.48% 2.88% -- 2.36%
- -----------------------------------------------------------------------------------------------------------
EQ/Alliance Small Cap Growth 4.04% -- -- 5.74%
- -----------------------------------------------------------------------------------------------------------
EQ/Alliance Technology -- -- -- (28.24)%
- -----------------------------------------------------------------------------------------------------------
EQ/AXP New Dimensions -- -- -- (27.36)%
- -----------------------------------------------------------------------------------------------------------
EQ/AXP Strategy Aggressive -- -- -- (51.07)%
- -----------------------------------------------------------------------------------------------------------
EQ/Balanced 0.21% 5.36% 4.19% 7.21%
- -----------------------------------------------------------------------------------------------------------
EQ/Bernstein Diversified Value (2.71)% -- -- 1.52%
- -----------------------------------------------------------------------------------------------------------
EQ/Calvert Socially Responsible -- -- -- (9.50)%
- -----------------------------------------------------------------------------------------------------------
EQ/Capital Guardian International -- -- -- (8.30)%
- -----------------------------------------------------------------------------------------------------------
EQ/Capital Guardian Research -- -- -- (0.58)%
- -----------------------------------------------------------------------------------------------------------
EQ/Capital Guardian U.S. Equity -- -- -- (2.63)%
- -----------------------------------------------------------------------------------------------------------
EQ/Emerging Markets Equity (0.63)% -- -- (14.41)%
- -----------------------------------------------------------------------------------------------------------
EQ/Equity 500 Index (5.60)% 6.65% -- 11.10%
- -----------------------------------------------------------------------------------------------------------
EQ/Evergreen Omega -- -- -- (11.16)%
- -----------------------------------------------------------------------------------------------------------
EQ/FI Mid Cap -- -- -- (14.83)%
- -----------------------------------------------------------------------------------------------------------
EQ/FI Small/Mid Cap Value (0.62)% -- -- (0.63)%
- -----------------------------------------------------------------------------------------------------------
EQ/High Yield (7.94)% (4.31)% 4.08% 4.38%
- -----------------------------------------------------------------------------------------------------------
EQ/Janus Large Cap Growth -- -- -- (31.56)%
- -----------------------------------------------------------------------------------------------------------
EQ/Lazard Small Cap Value 8.32% -- -- 2.85%
- -----------------------------------------------------------------------------------------------------------
EQ/Mercury Basic Value Equity 7.89% -- -- 10.03%
- -----------------------------------------------------------------------------------------------------------
EQ/MFS Emerging Growth Companies (6.59)% -- -- 5.96%
- -----------------------------------------------------------------------------------------------------------
EQ/MFS Investors Trust -- -- -- (7.37)%
- -----------------------------------------------------------------------------------------------------------
EQ/MFS Research (7.21)% -- -- 2.00%
- -----------------------------------------------------------------------------------------------------------
EQ/Putnam Growth & Income Value (4.83)% -- -- 1.26%
- -----------------------------------------------------------------------------------------------------------
EQ/Putnam International Equity (0.94)% -- -- 4.19%
- -----------------------------------------------------------------------------------------------------------
EQ/Putnam Voyager (10.97)% -- -- 2.91%
- -----------------------------------------------------------------------------------------------------------
+ Unannualized if time since inception is less than one year
** The variable investment option inception dates are: EQ/Aggressive Stock and
EQ/Balanced (1/27/86); EQ/Alliance Money Market (7/31/81); EQ/Alliance
Common Stock (8/27/81); EQ/Equity 500 Index (6/1/94); EQ/Alliance Global,
EQ/Alliance Growth and Income, EQ/Alliance Growth Investors, EQ/Alliance
Quality Bond and EQ/High Yield (1/4/94); EQ/Alliance Intermediate Government
Securities (6/1/94); EQ/Alliance International (9/1/95); EQ/Alliance Small
Cap Growth, EQ/MFS Emerging Growth Companies, EQ/MFS Research, EQ/Mercury
Basic Value Equity, EQ/Putnam Growth & Income Value, EQ/FI Small/Mid Cap
Value (6/2/97); EQ/Emerging Markets Equity (8/20/97); EQ/Evergreen Omega,
EQ/MFS Investors Trust, EQ/Alliance Premier Growth, EQ/Capital Guardian U.S.
Equity, EQ/Capital Guardian International, EQ/Capital Guardian Research,
EQ/Bernstein Diversified Value, EQ/Lazard Small Cap Value, EQ/Putnam
International Equity, EQ/Putnam Voyager (8/30/99); EQ/Calvert Socially
Responsible (9/1/99); EQ/Alliance Technology (5/22/00); EQ/Janus Large Cap
Growth, EQ/FI Mid Cap, EQ/AXP New Dimensions and EQ/AXP Strategy Aggressive
(9/1/00); EQ/Marsico Focus (10/22/01); AXA Premier VIP Large Cap Growth, AXA
Premier VIP Large Cap Core Equity, AXA Premier VIP Large Cap Value, AXA
Premier VIP Small/Mid Cap Growth, AXA Premier VIP Small/Mid Cap Value, AXA
Premier VIP International Equity, AXA Premier VIP Technology, AXA Premier
VIP Health Care, AXA Premier VIP Core Bond, EQ/International Equity Index,
EQ/J.P. Morgan Core Bond and EQ/Small Company Index (January 14, 2002). No
performance information is provided for portfolios and/or variable
investment options with inception dates after December 31, 2000.
*** The inception dates for the portfolios underlying the Alliance variable
investment options shown in the tables are for portfolios of The Hudson
River Trust, the assets of which became assets of corresponding portfolios
of EQ Advisors Trust on 10/18/99. The portfolio inception dates are:
EQ/Aggressive Stock and EQ/Balanced (1/27/86); EQ/Alliance Com-
27
mon Stock (1/13/76); EQ/Equity 500 Index (3/1/94); EQ/Alliance Global
(8/27/87); EQ/Alliance Growth and Income (10/1/93); EQ/Alliance Growth
Investors (10/2/89); EQ/High Yield (1/2/87); EQ/Alliance International
(4/3/95); EQ/Alliance Money Market (7/13/81); EQ/Alliance Intermediate
Government Securities (4/1/91); EQ/Alliance Quality Bond (10/1/ 93);
EQ/Alliance Small Cap Growth, EQ/MFS Research, EQ/Mercury Basic Value
Equity, EQ/Putnam Growth & Income Value, EQ/FI Small/Mid Cap Value,
EQ/Putnam International Equity and EQ/Putnam Voyager (5/1/97); EQ/Emerging
Markets Equity (8/20/97); EQ/Evergreen Omega and EQ/MFS Investors Trust
(1/1/99); EQ/Bernstein Diversified Value, EQ/International Equity Index,
EQ/J.P. Morgan Core Bond, EQ/Lazard Small Cap Value and EQ/Small Company
Index (1/1/98); EQ/MFS Emerging Growth Companies (5/1/ 97); EQ/Alliance
Premier Growth, EQ/Capital Guardian International, EQ/Capital Guardian
Research and EQ/Capital Guardian U.S. Equity (5/1/99); EQ/Calvert Socially
Responsible (9/1/99); EQ/Alliance Technology (5/1/00); EQ/Janus Large Cap
Growth, EQ/FI Mid Cap, EQ/AXP New Dimensions and EQ/AXP Strategy Aggressive
(9/1/00); EQ/Marsico Focus (August 31, 2001); AXA Premier VIP Large Cap
Growth, AXA Premier VIP Large Cap Core Equity, AXA Premier VIP Large Cap
Value, AXA Premier VIP Small/Mid Cap Growth, AXA Premier VIP Small/Mid Cap
Value, AXA Premier VIP International Equity, AXA Premier VIP Healthcare, AXA
Premier VIP Core Bond and AXA Premier VIP Technology (December 31, 2001). No
performance information is provided for portfolios and/or variable
investment options with inception dates after December 31, 2000.
28
EQUI-VEST(R) SERIES 100-500 (INDIVIDUAL):
TABLE
AVERAGE ANNUAL TOTAL RETURN UNDER A CONTRACT SURRENDERED ON DECEMBER 31, 2001
- ----------------------------------------------------------------------------------------------------------
LENGTH OF OPTION PERIOD
-----------------------------------------------------------
SINCE OPTION
VARIABLE INVESTMENT OPTIONS 1 YEAR 5 YEARS 10 YEARS INCEPTION+*
- -----------------------------------------------------------------------------------------------------------
EQ/Aggressive Stock (30.12)% (7.20)% 0.89% 8.38%
- -----------------------------------------------------------------------------------------------------------
EQ/Alliance Common Stock (16.65)% 6.28% 9.90% 12.23%
- -----------------------------------------------------------------------------------------------------------
EQ/Alliance Global (25.53)% 0.12% -- 4.18%
- -----------------------------------------------------------------------------------------------------------
EQ/Alliance Growth and Income (8.05)% 10.73% -- 11.32%
- -----------------------------------------------------------------------------------------------------------
EQ/Alliance Growth Investors (18.41)% 3.64% -- 5.97%
- -----------------------------------------------------------------------------------------------------------
EQ/Alliance Intermediate Government Securities 0.75% 2.15% -- 2.63%
- -----------------------------------------------------------------------------------------------------------
EQ/Alliance International (28.15)% (6.79)% -- (3.49)%
- -----------------------------------------------------------------------------------------------------------
EQ/Alliance Money Market (3.25)% 0.82% 0.95% 3.48%
- -----------------------------------------------------------------------------------------------------------
EQ/Alliance Premier Growth (29.17)% -- -- (17.50)%
- -----------------------------------------------------------------------------------------------------------
EQ/Alliance Quality Bond 0.88% 2.76% -- 2.88%
- -----------------------------------------------------------------------------------------------------------
EQ/Alliance Small Cap Growth (18.98)% -- -- 3.11%
- -----------------------------------------------------------------------------------------------------------
EQ/Alliance Technology (29.61)% -- -- (30.94)%
- -----------------------------------------------------------------------------------------------------------
EQ/AXP New Dimensions (21.30)% -- -- (27.44)%
- -----------------------------------------------------------------------------------------------------------
EQ/AXP Strategy Aggressive (38.02)% -- -- (51.12)%
- -----------------------------------------------------------------------------------------------------------
EQ/Balanced (8.56)% 5.24% 4.07% 7.09%
- -----------------------------------------------------------------------------------------------------------
EQ/Bernstein Diversified Value (3.96)% -- -- (5.11)%
- -----------------------------------------------------------------------------------------------------------
EQ/Calvert Socially Responsible -- -- -- (8.16)%
- -----------------------------------------------------------------------------------------------------------
EQ/Capital Guardian International (26.30)% -- -- (3.20)%
- -----------------------------------------------------------------------------------------------------------
EQ/Capital Guardian Research (8.73)% -- -- (0.19)%
- -----------------------------------------------------------------------------------------------------------
EQ/Capital Guardian U.S. Equity (8.71)% -- -- (2.97)%
- -----------------------------------------------------------------------------------------------------------
EQ/Emerging Markets Equity (11.65)% -- -- (14.51)%
- -----------------------------------------------------------------------------------------------------------
EQ/Equity 500 Index (17.97)% 6.52% -- 11.51%
- -----------------------------------------------------------------------------------------------------------
EQ/Evergreen Omega (22.69)% -- -- (14.75)%
- -----------------------------------------------------------------------------------------------------------
EQ/FI Mid Cap (19.34)% -- -- (14.93)%
- -----------------------------------------------------------------------------------------------------------
EQ/FI Small/Mid Cap Value (3.12)% -- -- (2.27)%
- -----------------------------------------------------------------------------------------------------------
EQ/High Yield (5.96)% (4.43)% -- 1.28%
- -----------------------------------------------------------------------------------------------------------
EQ/Janus Large Cap Growth (28.23)% -- -- (31.63)%
- -----------------------------------------------------------------------------------------------------------
EQ/Lazard Small Cap Value 9.80% -- -- (3.50)%
- -----------------------------------------------------------------------------------------------------------
EQ/Mercury Basic Value Equity (1.69)% -- -- 8.26%
- -----------------------------------------------------------------------------------------------------------
EQ/MFS Emerging Growth Companies (38.57)% -- -- 3.86%
- -----------------------------------------------------------------------------------------------------------
EQ/MFS Investors Trust (21.73)% -- -- (10.07)%
- -----------------------------------------------------------------------------------------------------------
EQ/MFS Research (27.17)% -- -- 0.40%
- -----------------------------------------------------------------------------------------------------------
EQ/Putnam Growth & Income Value (13.19)% -- -- (0.02)%
- -----------------------------------------------------------------------------------------------------------
EQ/Putnam International Equity (26.90)% -- -- (3.01)%
- -----------------------------------------------------------------------------------------------------------
EQ/Putnam Voyager (29.63)% -- -- (3.12)%
- -----------------------------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------------------
LENGTH OF PORTFOLIO PERIOD
-----------------------------------------------------------
SINCE
PORTFOLIO
VARIABLE INVESTMENT OPTIONS 3 YEARS 5 YEARS 10 YEARS INCEPTION+**
- -----------------------------------------------------------------------------------------------------------
EQ/Aggressive Stock (12.42)% (7.20)% 0.89% 8.38%
- -----------------------------------------------------------------------------------------------------------
EQ/Alliance Common Stock (5.56)% 6.28% 9.90% 9.20%
- -----------------------------------------------------------------------------------------------------------
EQ/Alliance Global (7.71)% 0.12% 5.71% 5.74%
- -----------------------------------------------------------------------------------------------------------
EQ/Alliance Growth and Income 4.15% 10.73% -- 10.44%
- -----------------------------------------------------------------------------------------------------------
EQ/Alliance Growth Investors (3.21)% 3.64% 5.97% 9.30%
- -----------------------------------------------------------------------------------------------------------
EQ/Alliance Intermediate Government Securities 1.34% 2.15% 2.35% 3.10%
- -----------------------------------------------------------------------------------------------------------
EQ/Alliance International (10.74)% (6.79)% -- (2.46)%
- -----------------------------------------------------------------------------------------------------------
EQ/Alliance Money Market 0.63% 0.82% 0.95% 3.48%
- -----------------------------------------------------------------------------------------------------------
EQ/Alliance Premier Growth -- -- -- (15.24)%
- -----------------------------------------------------------------------------------------------------------
EQ/Alliance Quality Bond 1.36% 2.76% -- 2.23%
- -----------------------------------------------------------------------------------------------------------
EQ/Alliance Small Cap Growth 3.91% -- -- 5.61%
- -----------------------------------------------------------------------------------------------------------
EQ/Alliance Technology -- -- -- (28.32)%
- -----------------------------------------------------------------------------------------------------------
EQ/AXP New Dimensions -- -- -- (27.44)%
- -----------------------------------------------------------------------------------------------------------
EQ/AXP Strategy Aggressive -- -- -- (51.12)%
- -----------------------------------------------------------------------------------------------------------
EQ/Balanced 0.11% 5.24% 4.07% 7.09%
- -----------------------------------------------------------------------------------------------------------
EQ/Bernstein Diversified Value (2.82)% -- -- 1.39%
- -----------------------------------------------------------------------------------------------------------
EQ/Calvert Socially Responsible -- -- -- (9.61)%
- -----------------------------------------------------------------------------------------------------------
EQ/Capital Guardian International -- -- -- (8.40)%
- -----------------------------------------------------------------------------------------------------------
EQ/Capital Guardian Research -- -- -- (0.69)%
- -----------------------------------------------------------------------------------------------------------
EQ/Capital Guardian U.S. Equity -- -- -- (2.74)%
- -----------------------------------------------------------------------------------------------------------
EQ/Emerging Markets Equity (0.74)% -- -- (14.51)%
- -----------------------------------------------------------------------------------------------------------
EQ/Equity 500 Index (5.71)% 6.52% -- 10.97%
- -----------------------------------------------------------------------------------------------------------
EQ/Evergreen Omega -- -- -- (11.26)%
- -----------------------------------------------------------------------------------------------------------
EQ/FI Mid Cap -- -- -- (14.93)%
- -----------------------------------------------------------------------------------------------------------
EQ/FI Small/Mid Cap Value (0.74)% -- -- (0.75)%
- -----------------------------------------------------------------------------------------------------------
EQ/High Yield (8.05)% (4.43)% 3.96% 4.25%
- -----------------------------------------------------------------------------------------------------------
EQ/Janus Large Cap Growth -- -- -- (31.63)%
- -----------------------------------------------------------------------------------------------------------
EQ/Lazard Small Cap Value 8.21% -- -- 2.74%
- -----------------------------------------------------------------------------------------------------------
EQ/Mercury Basic Value Equity 7.76% -- -- 9.90%
- -----------------------------------------------------------------------------------------------------------
EQ/MFS Emerging Growth Companies (6.70)% -- -- 5.84%
- -----------------------------------------------------------------------------------------------------------
EQ/MFS Investors Trust -- -- -- (7.48)%
- -----------------------------------------------------------------------------------------------------------
EQ/MFS Research (7.32)% -- -- 1.88%
- -----------------------------------------------------------------------------------------------------------
EQ/Putnam Growth & Income Value (4.94)% -- -- 1.14%
- -----------------------------------------------------------------------------------------------------------
EQ/Putnam International Equity (1.06)% -- -- 4.07%
- -----------------------------------------------------------------------------------------------------------
EQ/Putnam Voyager (11.08)% -- -- 2.78%
- -----------------------------------------------------------------------------------------------------------
+ Unannualized (including Since Inception values if time since inception is
less than one year)
* The variable investment option inception dates are: EQ/Aggressive Stock and
EQ/Balanced (1/27/86); EQ/Alliance Money Market (7/31/81); EQ/Alliance Common
Stock (8/27/81); EQ/Equity 500 Index (6/1/94); EQ/Alliance Global,
EQ/Alliance Growth and Income, EQ/Alliance Growth Investors, EQ/Alliance High
Yield and EQ/Alliance Quality Bond (1/4/94); EQ/Alliance International
(9/1/95); EQ/Alliance Small Cap Growth, EQ/MFS Emerging Growth Companies,
EQ/MFS Research, EQ/Mercury Basic Value Equity, EQ/Putnam Growth & Income
Value, EQ/FI Small/Mid Cap Value (6/2/97); EQ/Emerging Markets Equity
(8/20/97); EQ/Evergreen Omega, EQ/MFS Investors Trust, EQ/Alliance Premier
Growth, EQ/Capital Guardian U.S. Equity, EQ/Capital Guardian International,
EQ/Bernstein Diversified Value, EQ/Lazard Small Cap Value, EQ/Putnam
International Equity, EQ/Putnam Voyager and EQ/Calvert Socially Responsible
(8/30/99); EQ/Alliance Technology (5/22/00); EQ/Janus Large Cap Growth, EQ/FI
Mid Cap, EQ/AXP New Dimensions and EQ/AXP Strategy Aggressive (9/1/00);
EQ/Marsico Focus (10/22/01); AXA Premier VIP Large Cap Growth, AXA Premier
VIP Large Cap Core Equity, AXA Premier VIP Large Cap Value, AXA Premier VIP
Small/Mid Cap Growth, AXA Premier VIP Small/Mid Cap Value, AXA Premier VIP
International Equity, AXA Premier VIP Technology, AXA Premier VIP Health
Care, AXA Premier VIP Core Bond, EQ/International Equity Index, EQ/J.P.
Morgan Core Bond and EQ/Small Company Index (January 14, 2002). No
performance information is provided for portfolios and/or variable investment
options with inception dates after December 31, 2000.
** The inception dates for the portfolios underlying the Alliance variable
investment options shown in the tables are for portfolios of The Hudson River
Trust, the assets of which became assets of corresponding portfolios of EQ
Advisors Trust on 10/18/99. The portfolio inception dates are: EQ/Aggressive
Stock and EQ/Balanced (1/27/86); EQ/Alliance Common Stock (1/13/76);
EQ/Equity 500 Index (3/1/94); EQ/Alliance Global (8/27/87); EQ/Alliance
Growth and Income (10/1/93); EQ/Alliance Growth Investors (10/2/89);
EQ/Alliance High Yield (1/2/87); EQ/Alliance International (4/3/95);
EQ/Alliance Money Market (7/13/81); EQ/Alliance Quality Bond (10/1/93);
EQ/Alliance Small Cap Growth, EQ/MFS Research,
29
EQ/Mercury Basic Value Equity, EQ/Putnam Growth & Income Value, EQ/FI
Small/Mid Cap Value, EQ/Putnam International Equity and EQ/Putnam Voyager
(5/1/97); EQ/Emerging Markets Equity (8/20/97); EQ/Evergreen Omega and
EQ/MFS Investors Trust (1/1/99); EQ/Bernstein Diversified Value,
EQ/International Equity Index, EQ/J.P. Morgan Core Bond, EQ/Lazard Small Cap
Value and EQ/Small Company Index (1/1/98); EQ/MFS Emerging Growth Companies
(5/1/97); EQ/Alliance Premier Growth, EQ/Capital Guardian International and
EQ/Capital Guardian U.S. Equity (5/1/99); EQ/Calvert Socially Responsible
(9/1/99); EQ/Alliance Technology (5/1/00); EQ/Janus Large Cap Growth, EQ/FI
Mid Cap, EQ/AXP New Dimensions and EQ/AXP Strategy Aggressive (9/1/00);
EQ/Marsico Focus (August 31, 2001); AXA Premier VIP Large Cap Growth, AXA
Premier VIP Large Cap Core Equity, AXA Premier VIP Large Cap Value, AXA
Premier VIP Small/Mid Cap Growth, AXA Premier VIP Small/Mid Cap Value, AXA
Premier VIP International Equity, AXA Premier VIP Healthcare, AXA Premier
VIP Core Bond and AXA Premier VIP Technology (December 31, 2001). No
performance information is provided for portfolios and/or variable
investment options with inception dates after December 31, 2000.
(15) CLARIFICATION OF VARIABLE IMMEDIATE ANNUITY PAYOUT OPTIONS
VARIABLE IMMEDIATE ANNUITY PAYOUT OPTIONS
Variable Immediate Annuities are available and offered through a separate
prospectus that is available from your financial professional. Before you select
a Variable Immediate Annuity payout option, you should read the prospectus which
contains important information that you should know.
Variable annuities may be funded through your choice of variable investment
options investing in portfolios of EQ Advisors Trust. The contract also offers a
fixed annuity option that can be elected in combination with the variable
annuity payout options. the amount of each variable annuity payment will
fluctuate, depending upon the performance of the variable investment options,
and whether the actual rate of investment return is higher or lower than an
assumed base rate.
As stated in your prospectus, we deduct a fee of up to $350 from the amount to
be applied to purchase a Variable Immediate Annuity payout option.
30
Appendix
- --------------------------------------------------------------------------------
Dates of previous Prospectuses and Supplements:
- ------------------------------------------------------------------------------------------------------------------------------------
Product Name Prospectus Dates Supplement Dates
- ------------------------------------------------------------------------------------------------------------------------------------
o EQUI-VEST(R) 5/1/00; 5/1/01 5/19/01; 6/23/00; 9/1/00; 1/5/01; 2/9/01; 12/17/01; 1/14/02
o EQUI-VEST(R) Employer-Sponsored Retirement Programs 5/1/00; 5/1/01 5/19/01; 6/23/00; 9/1/00; 1/5/01; 2/9/01; 12/17/01; 1/14/02
- ------------------------------------------------------------------------------------------------------------------------------------
Statement of additional information
- --------------------------------------------------------------------------------
TABLE OF CONTENTS FOR EQUI-VEST(R)
Page
Unit values 2
Calculation of annuity payments 2
The reorganization 3
Custodian and independent accountants 3
EQ/Alliance Money Market option yield information 4
Other yield information 4
Distribution of the contracts 5
Financial statements 5
TABLE OF CONTENTS FOR EQUI-VEST(R) EMPLOYER SPONSORED PROGRAMS
Page
Unit values 2
Calculation of annuity payments 2
The reorganization 3
Custodian and independent accountants 3
EQ/Alliance Money Market option yield information 4
Other yield information 5
Distribution of the contracts 5
Financial statements 5
How to Obtain an EQUI-VEST(R) Statement of Additional Information for Separate
Account A
Call 1-800-628-6673 or send this request form to:
EQUI-VEST(R)
Employer Sponsored Programs/Combination variable fixed deferred annuity (as
applicable)
Processing Office
The Equitable Life
P.O. Box 2996
New York, NY 10116-2996
- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
Please send me an EQUI-VEST(R) Statement of Additional Information dated
May 1, 2002
Check one:
Employer-Sponsored Retirement Programs |_|
Combination variable and fixed deferred annuity |_|
- --------------------------------------------------------------------------------
Name
- --------------------------------------------------------------------------------
Address
- --------------------------------------------------------------------------------
City State Zip
888-1297 (5/02)
SUPPLEMENT, DATED MAY 1, 2002, TO THE
EQUI-VEST(R) EXPRESS(SM) PROSPECTUS AND
EQUI-VEST(R) PROSPECTUS
COMBINATION VARIABLE AND FIXED DEFERRED
ANNUITY CERTIFICATES ISSUED BY THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE
UNITED STATES
- --------------------------------------------------------------------------------
This Supplement updates certain information in the most recent prospectus and
statement of additional information you received for any of the products listed
above, and in any Supplements to that prospectus and statement of additional
information. The Appendix sets forth the dates of such prior prospectuses,
statements of additional information and supplements, which, in addition to this
Supplement, should be kept for future reference.
We have filed with the Securities and Exchange Commission (SEC) our statement of
additional information (SAI) dated May 1, 2002. If you do not presently have a
copy of the prospectus and prior supplements, you may obtain additional copies,
as well as a copy of the SAI, from us, free of charge, by writing to Equitable
Life, P.O. Box 2996, New York, NY 10116-2996, or calling (800) 628-6673. If you
only need a copy of the SAI, you may mail in the SAI request form located at the
end of this supplement. The SAI has been incorporated by reference into this
supplement.
In this Supplement, we provide information on (1) how to reach us; (2) the
combination of certain investment options; (3) investment options; (4) the
Trusts' annual expenses; (5) disruptive transfer activity; (6) minimum
distribution withdrawals; (7) the annual administrative charge; (8) our business
day; (9) payment of the death benefit; (10) tax information; (11) the
beneficiary continuation option; (12) condensed financial information; (13)
Equitable Life; (14) investment performance; and (15) Variable Immediate Annuity
payout options.
X00338
(1) HOW TO REACH US
You may communicate with our processing office as listed below for the purposes
described. Certain methods of contacting us, such as by telephone or
electronically may be unavailable or delayed (for example our facsimile service
may not be available at all times and/or we may be unavailable due to emergency
closing). In addition, the level and type of service available may be restricted
based on criteria established by us.
- --------------------------------------------------------------------------------
FOR NQ AND IRA OWNERS WHO SEND CONTRIBUTIONS
INDIVIDUALLY BY REGULAR MAIL:
- --------------------------------------------------------------------------------
Equitable Life
EQUI-VEST(R)
Individual Collections
P.O. Box 13459
Newark, NJ 07188-0459
- --------------------------------------------------------------------------------
FOR NQ AND IRA OWNERS WHO SEND CONTRIBUTIONS
INDIVIDUALLY BY EXPRESS DELIVERY:
- --------------------------------------------------------------------------------
Equitable Life
c/o Bank One, N.A.
300 Harmon Meadow Boulevard, 3rd Floor
Secaucus, NJ 07094
Attn: Box 13459
- --------------------------------------------------------------------------------
FOR ALL OTHER COMMUNICATIONS (E.G., REQUESTS FOR
TRANSFERS, WITHDRAWALS, OR REQUIRED NOTICES) SENT BY
REGULAR MAIL:
- --------------------------------------------------------------------------------
Equitable Life
EQUI-VEST(R)
P.O. Box 2996
New York, NY 10116-2996
- --------------------------------------------------------------------------------
FOR ALL OTHER COMMUNICATIONS (E.G., REQUESTS FOR
TRANSFERS, WITHDRAWALS, OR REQUIRED NOTICES) SENT BY
EXPRESS DELIVERY:
- --------------------------------------------------------------------------------
Equitable Life
EQUI-VEST(R)
200 Plaza Drive, 2nd Floor
Secaucus, NJ 07094
- --------------------------------------------------------------------------------
FOR NQ AND IRA CONTRIBUTIONS REMITTED BY EMPLOYERS
AND SENT BY REGULAR MAIL:
- --------------------------------------------------------------------------------
Equitable Life
EQUI-VEST(R)
Unit Collections
P.O. Box 13463
Newark, New Jersey 07188-0463
- --------------------------------------------------------------------------------
FOR NQ AND IRA CONTRIBUTIONS REMITTED BY EMPLOYERS
AND SENT BY EXPRESS DELIVERY:
- --------------------------------------------------------------------------------
Equitable Life
c/o Bank One, N.A.
300 Harmon Meadow Boulevard, 3rd Floor
Secaucus, NJ 07094
Attn: Box 13463
- --------------------------------------------------------------------------------
REPORTS WE PROVIDE:
- --------------------------------------------------------------------------------
o written confirmation of financial transactions;
o quarterly statements of your contract values as of the close of each calendar
quarter; and
o annual statement of your contract values as of your contract date anniversary.
- --------------------------------------------------------------------------------
TELEPHONE OPERATED PROGRAM SUPPORT ("TOPS") AND
EQACCESS SYSTEMS:
- --------------------------------------------------------------------------------
TOPS is designed to provide you with up-to-date information via touch-tone
telephone. EQAccess is designed to provide this information through the
Internet. You can obtain information on:
o your current account value;
o your current allocation percentages;
o the number of units you have in the variable investment options;
o rates to maturity for fixed maturity options;
o the daily unit values for the variable investment options; and
o performance information regarding the variable investment options (not
available through TOPS).
You can also:
o change your allocation percentages and/or transfer among the variable
investment options; and
o change your TOPS personal identification number ("PIN") (not available through
EQAccess).
o change your EQAccess password (not available through TOPS).
TOPS and EQAccess are normally available seven days a week, 24 hours a day. You
may use TOPS by calling toll free 1 (800) 755-7777. You may use EQAccess by
visiting our Web site at http:// www.equitable.com and clicking on EQAccess. Of
course, for reasons beyond our control, these services may sometimes be
unavailable.
We have established procedures to reasonably confirm that the instructions
communicated by telephone or the Internet are genuine. For example, we will
require certain personal identification information before we will act on
telephone or Internet instructions and we will provide written confirmation of
your transfers. If we do not employ reasonable procedures to confirm the
genuineness of telephone or Internet instructions, we may be liable for any
losses arising out of any act or omission that constitutes negligence, lack of
good faith, or wilful misconduct. In light of our procedures, we will not be
liable for following telephone or Internet instructions we reasonably believe to
be genuine.
2
We reserve the right to limit access to these services if we determine that you
engaged in a disruptive transfer activity such as "market timing" (see
"Disruptive transfer activity" in "Transferring your money among investment
options" in your Prospectus).
- --------------------------------------------------------------------------------
CUSTOMER SERVICE REPRESENTATIVE:
- --------------------------------------------------------------------------------
You may also use our toll-free number 1 (800) 628-6673 to speak with one of our
customer service representatives. Our customer service representatives are
available on each business day Monday through Thursday from 8:00 a.m. to 7:00
p.m., and on Fridays until 5:00 p.m., Eastern Time.
Hearing or speech-impaired clients may call the AT&T National Relay Number at
(800) 855-2880 for information about your account. If you have a
Telecommunications Device for the Deaf (TDD), you may relay messages or
questions to our Customer Service Department at (800) 628-6673, Monday through
Thursday from 8:00 a.m. to 7:00 p.m. and on Friday until 5:00 p.m. Eastern Time.
AT&T personnel will communicate our reply back to you, via the TDD.
- --------------------------------------------------------------------------------
TOLL-FREE TELEPHONE SERVICE:
- --------------------------------------------------------------------------------
You may reach us toll-free by calling 1 (800) 841-0801 for a recording of daily
unit values for the variable investment options.
(2) COMBINATION OF CERTAIN INVESTMENT OPTIONS
Interests in the EQ/Putnam International Equity, EQ/Capital Guardian U.S. Equity
and the EQ/Alliance Small Cap Growth investment options (the "surviving
options") replaced or will replace interests in the EQ/T. Rowe Price
International Stock, EQ/AXP New Dimensions and the EQ/AXP Strategy Aggressive
investment options, respectively (the "replaced options"), and these options are
or will no longer be available. At the time of the replacement, all the assets
that are in the replaced options are moved into the surviving options. After the
replacement, any allocation elections to the replaced options will then be
considered as allocation elections to the surviving options. The effective date
for the replacement of EQ/T. Rowe Price International Stock investment option
was April 26, 2002, therefore, references to it have been omitted from the fee
table, the expense examples and the investment performance. The replacement of
EQ/AXP New Dimensions and the EQ/AXP Strategy Aggressive investment options will
be on or about July 12, 2002, subject to shareholder vote. We will notify you if
these replacements do not take place.
(3) INVESTMENT OPTIONS
Please note the following information:
- --------------------------------------------------------------------------------
FORMER NAME NEW NAME EFFECTIVE DATE
- --------------------------------------------------------------------------------
EQ/Alliance High Yield EQ/High Yield May 1, 2002
EQ/Putnam Investors Growth EQ/Putnam Voyager May 1, 2002
- --------------------------------------------------------------------------------
The investment objective and adviser for the corresponding portfolio remains the
same.
(4) THE TRUSTS' ANNUAL EXPENSES
The following table sets forth the annual expenses for each portfolio as of
December 31, 2001. All portfolios may not be available in all annuity products.
3
THE TRUSTS' ANNUAL EXPENSES
(AS A PERCENTAGE OF AVERAGE DAILY NET ASSETS IN EACH PORTFOLIO)
- ------------------------------------------------------------------------------------------------------------------------
NET
TOTAL ANNUAL
MANAGEMENT FEES OTHER EXPENSES EXPENSES (AFTER
(AFTER EXPENSE (AFTER EXPENSE EXPENSE
PORTFOLIO NAME LIMITATION)(1) 12B-1 FEES(2) LIMITATION)(3) LIMITATION)(4)
- ------------------------------------------------------------------------------------------------------------------------
AXA PREMIER VIP TRUST:
- ------------------------------------------------------------------------------------------------------------------------
AXA Premier VIP Core Bond* 0.00% 0.25% 0.70% 0.95%
AXA Premier VIP Health Care* 0.44% 0.25% 1.16% 1.85%
AXA Premier VIP International Equity* 0.62% 0.25% 0.93% 1.80%
AXA Premier VIP Large Cap Core Equity* 0.17% 0.25% 0.93% 1.35%
AXA Premier VIP Large Cap Growth* 0.31% 0.25% 0.79% 1.35%
AXA Premier VIP Large Cap Value* 0.08% 0.25% 1.02% 1.35%
AXA Premier VIP Small/Mid Cap Growth* 0.42% 0.25% 0.93% 1.60%
AXA Premier VIP Small/Mid Cap Value* 0.20% 0.25% 1.15% 1.60%
AXA Premier VIP Technology* 0.58% 0.25% 1.02% 1.85%
- ------------------------------------------------------------------------------------------------------------------------
EQ ADVISORS TRUST:
- ------------------------------------------------------------------------------------------------------------------------
EQ/Aggressive Stock 0.61% 0.25% 0.08% 0.94%
EQ/Alliance Common Stock 0.46% 0.25% 0.07% 0.78%
EQ/Alliance Global 0.73% 0.25% 0.12% 1.10%
EQ/Alliance Growth and Income 0.57% 0.25% 0.06% 0.88%
EQ/Alliance Growth Investors 0.57% 0.25% 0.06% 0.88%
EQ/Alliance Intermediate Government Securities 0.50% 0.25% 0.12% 0.87%
EQ/Alliance International 0.85% 0.25% 0.25% 1.35%
EQ/Alliance Money Market 0.33% 0.25% 0.07% 0.65%
EQ/Alliance Premier Growth 0.84% 0.25% 0.06% 1.15%
EQ/Alliance Quality Bond 0.53% 0.25% 0.07% 0.85%
EQ/Alliance Small Cap Growth 0.75% 0.25% 0.06% 1.06%
EQ/Alliance Technology 0.82% 0.25% 0.08% 1.15%
EQ/AXP New Dimensions 0.00% 0.25% 0.70% 0.95%
EQ/AXP Strategy Aggressive 0.00% 0.25% 0.75% 1.00%
EQ/Balanced 0.57% 0.25% 0.08% 0.90%
EQ/Bernstein Diversified Value 0.61% 0.25% 0.09% 0.95%
EQ/Calvert Socially Responsible 0.00% 0.25% 0.80% 1.05%
EQ/Capital Guardian International 0.66% 0.25% 0.29% 1.20%
EQ/Capital Guardian Research 0.55% 0.25% 0.15% 0.95%
EQ/Capital Guardian U.S. Equity 0.59% 0.25% 0.11% 0.95%
EQ/Emerging Markets Equity 0.87% 0.25% 0.68% 1.80%
EQ/Equity 500 Index 0.25% 0.25% 0.06% 0.56%
EQ/Evergreen Omega 0.00% 0.25% 0.70% 0.95%
EQ/FI Mid Cap 0.48% 0.25% 0.27% 1.00%
EQ/FI Small/Mid Cap Value 0.74% 0.25% 0.11% 1.10%
EQ/High Yield 0.60% 0.25% 0.07% 0.92%
EQ/International Equity Index 0.35% 0.25% 0.50% 1.10%
EQ/J.P. Morgan Core Bond 0.44% 0.25% 0.11% 0.80%
EQ/Janus Large Cap Growth 0.76% 0.25% 0.14% 1.15%
EQ/Lazard Small Cap Value 0.72% 0.25% 0.13% 1.10%
EQ/Marsico Focus* 0.00% 0.25% 0.90% 1.15%
EQ/Mercury Basic Value Equity 0.60% 0.25% 0.10% 0.95%
EQ/MFS Emerging Growth Companies 0.63% 0.25% 0.09% 0.97%
EQ/MFS Investors Trust 0.58% 0.25% 0.12% 0.95%
EQ/MFS Research 0.63% 0.25% 0.07% 0.95%
EQ/Putnam Growth & Income Value 0.57% 0.25% 0.13% 0.95%
EQ/Putnam International Equity 0.71% 0.25% 0.29% 1.25%
EQ/Putnam Voyager 0.62% 0.25% 0.08% 0.95%
EQ/Small Company Index 0.25% 0.25% 0.35% 0.85%
- ------------------------------------------------------------------------------------------------------------------------
Notes:
* Subject to state availability.
(1) The management fees for each Portfolio cannot be increased without a vote of
that Portfolio's shareholders. See footnote (4) for any expense limitation
agreement information.
(2) Portfolio shares are all subject to fees imposed under the distribution
plans (the "Rule 12b-1 Plan") adopted by the Trusts pursuant to Rule 12b-1
under the Investment Company Act of 1940. The 12b-1 fee will not be
increased for the life of the contracts.
4
(3) The amounts shown as "Other Expenses" will fluctuate from year to year
depending on actual expenses. Since initial seed capital was invested for
the EQ/Marsico Focus Portfolio on August 31, 2001, "Other Expenses" shown
have been annualized. Also, initial seed capital was invested for the
Portfolios of the AXA Premier VIP Trust on December 31, 2001, thus, "Other
Expenses" shown are estimated. See footnote (4) for any expense limitation
agreement information.
(4) Equitable Life, the Trusts' manager, has entered into expense limitation
agreements with respect to certain Portfolios which is effective through
April 30, 2003. Under these agreements, Equitable Life has agreed to waive
or limit its fees and assume other expenses of each of these Portfolios, if
necessary, in an amount that limits each Portfolio's total Annual Expenses
(exclusive of interest, taxes, brokerage commissions, capitalized
expenditures, and extraordinary expenses) to not more than the amounts
specified above as "Net Total Annual Expenses." Each Portfolio may at a
later date make a reimbursement to Equitable Life for any of the management
fees waived or limited and other expenses assumed and paid by Equitable Life
pursuant to the expense limitation agreement provided that the Portfolio's
current annual operating expenses do not exceed the operating expense limit
determined for such Portfolio. For more information see the prospectus for
each Trust. The following chart indicates management fees and other expenses
before any fee waivers and/or expense reimbursements that would have applied
to each Portfolio. Portfolios that are not listed below do not have an
expense limitation arrangement in effect or the expense limitation
arrangement did not result in a fee waiver or reimbursement.
5
- --------------------------------------------------------------------------------
MANAGEMENT OTHER EXPENSES
FEES (BEFORE ANY (BEFORE ANY FEE
FEE WAIVERS WAIVERS AND/OR
AND/OR EXPENSE EXPENSE
PORTFOLIO NAME REIMBURSEMENTS) REIMBURSEMENTS)
- --------------------------------------------------------------------------------
AXA PREMIER VIP TRUST:
- --------------------------------------------------------------------------------
AXA Premier VIP Core Bond 0.60% 0.84%
AXA Premier VIP Health Care 1.20% 1.16%
AXA Premier VIP International
Equity 1.05% 0.93%
AXA Premier VIP Large Cap Core
Equity 0.90% 0.93%
AXA Premier VIP Large Cap Growth 0.90% 0.79%
AXA Premier VIP Large Cap Value 0.90% 1.02%
AXA Premier VIP Small/Mid Cap
Growth 1.10% 0.93%
AXA Premier VIP Small/Mid Cap
Value 1.10% 1.15%
AXA Premier VIP Technology 1.20% 1.02%
- --------------------------------------------------------------------------------
EQ ADVISORS TRUST:
- --------------------------------------------------------------------------------
EQ/Alliance Premier Growth 0.90% 0.06%
EQ/Alliance Technology 0.90% 0.08%
EQ/AXP New Dimensions 0.65% 1.06%
EQ/AXP Strategy Aggressive 0.70% 0.77%
EQ/Bernstein Diversified Value 0.65% 0.09%
- --------------------------------------------------------------------------------
MANAGEMENT OTHER EXPENSES
FEES (BEFORE ANY (BEFORE ANY FEE
FEE WAIVERS WAIVERS AND/OR
AND/OR EXPENSE EXPENSE
PORTFOLIO NAME REIMBURSEMENTS) REIMBURSEMENTS)
- --------------------------------------------------------------------------------
EQ/Calvert Socially Responsible 0.65% 1.46%
EQ/Capital Guardian International 0.85% 0.29%
EQ/Capital Guardian Research 0.65% 0.15%
EQ/Capital Guardian U.S. Equity 0.65% 0.11%
EQ/Emerging Markets Equity 1.15% 0.68%
EQ/Evergreen Omega 0.65% 0.99%
EQ/FI Mid Cap 0.70% 0.27%
EQ/FI Small/Mid Cap Value 0.75% 0.11%
EQ/International Equity Index 0.35% 0.50%
EQ/J.P. Morgan Core Bond 0.45% 0.11%
EQ/Janus Large Cap Growth 0.90% 0.14%
EQ/Lazard Small Cap Value 0.75% 0.13%
EQ/Marsico Focus 0.90% 2.44%
EQ/MFS Investors Trust 0.60% 0.12%
EQ/MFS Research 0.65% 0.07%
EQ/Putnam Growth & Income Value 0.60% 0.13%
EQ/Putnam International Equity 0.85% 0.29%
EQ/Putnam Voyager 0.65% 0.08%
- --------------------------------------------------------------------------------
EQUI-VEST(R)
EXAMPLES
The examples below show the expenses that a hypothetical contract owner would
pay in the situations illustrated. We assume a $1,000 contribution is invested
in one of the variable investment options listed and a 5% annual return is
earned on the assets in that option.(1) We also assume that the optional
ratcheted death benefit has not been elected and there is no waiver of the
withdrawal charge. The annual administrative charge is based on the charges that
apply to a mix of estimated contract sizes, resulting in an estimated
administrative charge for the purpose of these examples of $0.714 per $1,000.
Total Separate Account A annual expenses used to compute the examples below are
the maximum expenses rather than the lower current expenses discussed in your
Prospectus under "Charges and Expenses."
The examples assume the continuation of Total Annual Expenses (after expense
limitation) shown for each Portfolio of the Trusts in the table above, for the
entire one, three, five and ten year periods included in the examples. For a
complete description of portfolio charges and expenses, please see the attached
prospectuses for each Trust.
These examples should not be considered a representation of past or future
expenses for each option. Actual expenses may be greater or less than those
shown. Similarly, the annual rate of return assumed in the examples is not an
estimate or guarantee of future investment performance.
- -----------------------------------------------------------------------------------------
IF YOU SURRENDER YOUR CONTRACT AT THE END
OF EACH PERIOD SHOWN, THE EXPENSES
WOULD BE:
-------------------------------------------------
1 YEAR 3 YEARS 5 YEARS 10 YEARS
- -----------------------------------------------------------------------------------------
AXA Premier VIP Core Bond $ 83.64 $ 150.71 $ 220.26 $ 344.44
AXA Premier VIP Health Care $ 92.60 $ 176.90 $ 262.70 $ 428.25
AXA Premier VIP International Equity $ 92.10 $ 175.46 $ 260.39 $ 423.79
AXA Premier VIP Large Cap Core Equity $ 87.62 $ 162.41 $ 239.33 $ 382.65
AXA Premier VIP Large Cap Growth $ 87.62 $ 162.41 $ 239.33 $ 382.65
AXA Premier VIP Large Cap Value $ 87.62 $ 162.41 $ 239.33 $ 382.65
AXA Premier VIP Small/Mid Cap Growth $ 90.11 $ 169.68 $ 251.08 $ 405.74
AXA Premier VIP Small/Mid Cap Value $ 90.11 $ 169.68 $ 251.08 $ 405.74
AXA Premier VIP Technology $ 92.60 $ 176.90 $ 262.70 $ 428.25
EQ/Aggressive Stock $ 83.54 $ 150.42 $ 219.78 $ 343.47
EQ/Alliance Common Stock $ 81.94 $ 145.71 $ 212.05 $ 327.72
EQ/Alliance Global $ 85.13 $ 155.11 $ 227.45 $ 358.96
EQ/Alliance Growth and Income $ 82.94 $ 148.65 $ 216.89 $ 337.60
- -----------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------
IF YOU DO NOT SURRENDER YOUR CONTRACT AT
THE END OF EACH PERIOD SHOWN, THE
EXPENSES WOULD BE:
-------------------------------------------------
1 YEAR 3 YEARS 5 YEARS 10 YEARS
- -----------------------------------------------------------------------------------------
AXA Premier VIP Core Bond $ 31.70 $ 96.86 $ 164.42 $ 344.44
AXA Premier VIP Health Care $ 41.15 $ 124.53 $ 209.40 $ 428.25
AXA Premier VIP International Equity $ 40.62 $ 123.01 $ 206.95 $ 423.79
AXA Premier VIP Large Cap Core Equity $ 35.90 $ 109.22 $ 184.63 $ 382.65
AXA Premier VIP Large Cap Growth $ 35.90 $ 109.22 $ 184.63 $ 382.65
AXA Premier VIP Large Cap Value $ 35.90 $ 109.22 $ 184.63 $ 382.65
AXA Premier VIP Small/Mid Cap Growth $ 38.52 $ 116.90 $ 197.09 $ 405.74
AXA Premier VIP Small/Mid Cap Value $ 38.52 $ 116.90 $ 197.09 $ 405.74
AXA Premier VIP Technology $ 41.15 $ 124.53 $ 209.40 $ 428.25
EQ/Aggressive Stock $ 31.60 $ 96.55 $ 163.91 $ 343.47
EQ/Alliance Common Stock $ 29.92 $ 91.57 $ 155.72 $ 327.72
EQ/Alliance Global $ 33.28 $ 101.51 $ 172.04 $ 358.96
EQ/Alliance Growth and Income $ 30.97 $ 94.68 $ 160.85 $ 337.60
- -----------------------------------------------------------------------------------------
6
- --------------------------------------------------------------------------------------------------
IF YOU SURRENDER YOUR CONTRACT AT THE END
OF EACH PERIOD SHOWN, THE EXPENSES
WOULD BE:
---------------------------------------------------
1 YEAR 3 YEARS 5 YEARS 10 YEARS
- --------------------------------------------------------------------------------------------------
EQ/Alliance Growth Investors $ 82.94 $ 148.65 $ 216.89 $ 337.60
EQ/Alliance Intermediate Government Securities $ 82.84 $ 148.36 $ 216.41 $ 336.61
EQ/Alliance International $ 87.62 $ 162.41 $ 239.33 $ 382.65
EQ/Alliance Money Market $ 80.65 $ 141.87 $ 205.74 $ 314.74
EQ/Alliance Premier Growth $ 85.63 $ 156.57 $ 229.84 $ 363.75
EQ/Alliance Quality Bond $ 82.64 $ 147.77 $ 215.44 $ 334.64
EQ/Alliance Small Cap Growth $ 84.73 $ 153.94 $ 225.54 $ 355.11
EQ/Alliance Technology $ 85.63 $ 156.57 $ 229.84 $ 363.75
EQ/AXP New Dimensions $ 83.64 $ 150.71 $ 220.26 $ 344.44
EQ/AXP Strategy Aggressive $ 84.13 $ 152.18 $ 222.66 $ 349.31
EQ/Balanced $ 83.14 $ 149.24 $ 217.85 $ 339.56
EQ/Bernstein Diversified Value $ 83.64 $ 150.71 $ 220.26 $ 344.44
EQ/Calvert Socially Responsible $ 84.63 $ 153.64 $ 225.06 $ 354.14
EQ/Capital Guardian International $ 86.13 $ 158.04 $ 232.22 $ 368.51
EQ/Capital Guardian Research $ 83.64 $ 150.71 $ 220.26 $ 344.44
EQ/Capital Guardian U.S. Equity $ 83.64 $ 150.71 $ 220.26 $ 344.44
EQ/Emerging Markets Equity $ 92.10 $ 175.46 $ 260.39 $ 423.79
EQ/Equity 500 Index $ 79.75 $ 139.20 $ 201.35 $ 305.65
EQ/Evergreen Omega $ 83.64 $ 150.71 $ 220.26 $ 344.44
EQ/FI Mid Cap $ 84.13 $ 152.18 $ 222.66 $ 349.31
EQ/FI Small/Mid Cap Value $ 85.13 $ 155.11 $ 227.45 $ 358.96
EQ/High Yield $ 83.34 $ 149.83 $ 218.82 $ 341.52
EQ/International Equity Index $ 85.13 $ 155.11 $ 227.45 $ 358.96
EQ/J.P. Morgan Core Bond $ 82.14 $ 146.30 $ 213.02 $ 329.71
EQ/Janus Large Cap Growth $ 85.63 $ 156.57 $ 229.84 $ 363.75
EQ/Lazard Small Cap Value $ 85.13 $ 155.11 $ 227.45 $ 358.96
EQ/Marsico Focus $ 85.63 $ 156.57 $ 229.84 $ 363.75
EQ/Mercury Basic Value Equity $ 83.64 $ 150.71 $ 220.26 $ 344.44
EQ/MFS Emerging Growth Companies $ 83.83 $ 151.30 $ 221.22 $ 346.39
EQ/MFS Investors Trust $ 83.64 $ 150.71 $ 220.26 $ 344.44
EQ/MFS Research $ 83.64 $ 150.71 $ 220.26 $ 344.44
EQ/Putnam Growth & Income Value $ 83.64 $ 150.71 $ 220.26 $ 344.44
EQ/Putnam International Equity $ 86.62 $ 159.50 $ 234.59 $ 373.25
EQ/Putnam Voyager $ 83.64 $ 150.71 $ 220.26 $ 344.44
EQ/Small Company Index $ 82.64 $ 147.77 $ 215.44 $ 334.64
- --------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------
IF YOU DO NOT SURRENDER YOUR CONTRACT AT
THE END OF EACH PERIOD SHOWN, THE
EXPENSES WOULD BE:
---------------------------------------------------
1 YEAR 3 YEARS 5 YEARS 10 YEARS
- --------------------------------------------------------------------------------------------------
EQ/Alliance Growth Investors $ 30.97 $ 94.68 $ 160.85 $ 337.60
EQ/Alliance Intermediate Government Securities $ 30.86 $ 94.37 $ 160.34 $ 336.61
EQ/Alliance International $ 35.90 $ 109.22 $ 184.63 $ 382.65
EQ/Alliance Money Market $ 28.55 $ 87.51 $ 149.03 $ 314.74
EQ/Alliance Premier Growth $ 33.80 $ 103.05 $ 174.57 $ 363.75
EQ/Alliance Quality Bond $ 30.65 $ 93.75 $ 159.31 $ 334.64
EQ/Alliance Small Cap Growth $ 32.86 $ 100.27 $ 170.01 $ 355.11
EQ/Alliance Technology $ 33.80 $ 103.05 $ 174.57 $ 363.75
EQ/AXP New Dimensions $ 31.70 $ 96.86 $ 164.42 $ 344.44
EQ/AXP Strategy Aggressive $ 32.23 $ 98.41 $ 166.97 $ 349.31
EQ/Balanced $ 31.18 $ 95.31 $ 161.87 $ 339.56
EQ/Bernstein Diversified Value $ 31.70 $ 96.86 $ 164.42 $ 344.44
EQ/Calvert Socially Responsible $ 32.75 $ 99.96 $ 169.51 $ 354.14
EQ/Capital Guardian International $ 34.33 $ 104.60 $ 177.09 $ 368.51
EQ/Capital Guardian Research $ 31.70 $ 96.86 $ 164.42 $ 344.44
EQ/Capital Guardian U.S. Equity $ 31.70 $ 96.86 $ 164.42 $ 344.44
EQ/Emerging Markets Equity $ 40.62 $ 123.01 $ 206.95 $ 423.79
EQ/Equity 500 Index $ 27.61 $ 84.70 $ 144.37 $ 305.65
EQ/Evergreen Omega $ 31.70 $ 96.86 $ 164.42 $ 344.44
EQ/FI Mid Cap $ 32.23 $ 98.41 $ 166.97 $ 349.31
EQ/FI Small/Mid Cap Value $ 33.28 $ 101.51 $ 172.04 $ 358.96
EQ/High Yield $ 31.39 $ 95.93 $ 162.89 $ 341.52
EQ/International Equity Index $ 33.28 $ 101.51 $ 172.04 $ 358.96
EQ/J.P. Morgan Core Bond $ 30.13 $ 92.19 $ 156.75 $ 329.71
EQ/Janus Large Cap Growth $ 33.80 $ 103.05 $ 174.57 $ 363.75
EQ/Lazard Small Cap Value $ 33.28 $ 101.51 $ 172.04 $ 358.96
EQ/Marsico Focus $ 33.80 $ 103.05 $ 174.57 $ 363.75
EQ/Mercury Basic Value Equity $ 31.70 $ 96.86 $ 164.42 $ 344.44
EQ/MFS Emerging Growth Companies $ 31.91 $ 97.48 $ 165.44 $ 346.39
EQ/MFS Investors Trust $ 31.70 $ 96.86 $ 164.42 $ 344.44
EQ/MFS Research $ 31.70 $ 96.86 $ 164.42 $ 344.44
EQ/Putnam Growth & Income Value $ 31.70 $ 96.86 $ 164.42 $ 344.44
EQ/Putnam International Equity $ 34.85 $ 106.14 $ 179.61 $ 373.25
EQ/Putnam Voyager $ 31.70 $ 96.86 $ 164.42 $ 344.44
EQ/Small Company Index $ 30.65 $ 93.75 $ 159.31 $ 334.64
- --------------------------------------------------------------------------------------------------
IF YOU ELECT THE OPTIONAL RATCHETED DEATH BENEFIT:
The above examples do not reflect a charge for the optional ratcheted death
benefit. If you elected the optional ratcheted death benefit, we will also
deduct an annual charge equal to 0.15% of your account value on each contract
date anniversary up to age 90. Therefore, the expenses shown in the above
examples would, in each case, be increased by an amount not in excess of $1.57
in the first year, $1.74 in the third year, $1.91 in the fifth year and $2.44 in
the tenth year.
EQUI-VEST(R) EXPRESS(SM)
EXAMPLES
The examples below show the expenses that a hypothetical contract owner would
pay in the situations illustrated. We assume a $1,000 contribution is invested
in one of the variable investment options listed and a 5% annual return is
earned on the assets in that option.(1) The annual administrative charge is
based on the charges that apply to a mix of estimated contract sizes, resulting
in an estimated administrative charge for the purpose of these examples of
$0.714 per $1,000. We assume there is no waiver of the withdrawal charge. Total
Separate Account A annual expenses used to compute the examples below are the
maximum expenses rather than the lower current expenses discussed in your
Prospectus under "Charges and Expenses."
The examples assume the continuation of Total Annual Expenses (after expense
limitation) shown for each of the Trusts in the table above, for the entire one,
three, five and ten year periods included the examples. For a complete
description of portfolio charges and expenses, please see the attached
prospectuses for each Trust.
These examples should not be considered a representation of past or future
expenses for each option. Actual expenses may be greater or less than those
shown. Similarly, the annual rate of return assumed in the examples is not an
estimate or guarantee of future investment performance.
7
- --------------------------------------------------------------------------------------------------
IF YOU DO NOT SURRENDER YOUR CONTRACT AT
THE END OF EACH PERIOD SHOWN, THE
EXPENSES WOULD BE:
---------------------------------------------------
1 YEAR 3 YEARS 5 YEARS 10 YEARS
- --------------------------------------------------------------------------------------------------
AXA Premier VIP Core Bond $ 101.70 $ 146.86 $ 194.42 $ 344.44
AXA Premier VIP Health Care $ 111.15 $ 174.53 $ 239.40 $ 428.25
AXA Premier VIP International Equity $ 110.62 $ 173.01 $ 236.95 $ 423.79
AXA Premier VIP Large Cap Core Equity $ 105.90 $ 159.22 $ 214.63 $ 382.65
AXA Premier VIP Large Cap Growth $ 105.90 $ 159.22 $ 214.63 $ 382.65
AXA Premier VIP Large Cap Value $ 105.90 $ 159.22 $ 214.63 $ 382.65
AXA Premier VIP Small/Mid Cap Growth $ 108.52 $ 166.90 $ 227.09 $ 405.74
AXA Premier VIP Small/Mid Cap Value $ 108.52 $ 166.90 $ 227.09 $ 405.74
AXA Premier VIP Technology $ 111.15 $ 174.53 $ 239.40 $ 428.25
EQ/Aggressive Stock $ 101.60 $ 146.55 $ 193.91 $ 343.47
EQ/Alliance Common Stock $ 99.92 $ 141.57 $ 185.72 $ 327.72
EQ/Alliance Global $ 103.28 $ 151.51 $ 202.04 $ 358.96
EQ/Alliance Growth and Income $ 100.97 $ 144.68 $ 190.85 $ 337.60
EQ/Alliance Growth Investors $ 100.97 $ 144.68 $ 190.85 $ 337.60
EQ/Alliance Intermediate Government Securities $ 100.86 $ 144.37 $ 190.34 $ 336.61
EQ/Alliance International $ 105.90 $ 159.22 $ 214.63 $ 382.65
EQ/Alliance Money Market $ 98.55 $ 137.51 $ 179.03 $ 314.74
EQ/Alliance Premier Growth $ 103.80 $ 153.05 $ 204.57 $ 363.75
EQ/Alliance Quality Bond $ 100.65 $ 143.75 $ 189.31 $ 334.64
EQ/Alliance Small Cap Growth $ 102.86 $ 150.27 $ 200.01 $ 355.11
EQ/Alliance Technology $ 103.80 $ 153.05 $ 204.57 $ 363.75
EQ/AXP New Dimensions $ 101.70 $ 146.86 $ 194.42 $ 344.44
EQ/AXP Strategy Aggressive $ 102.23 $ 148.41 $ 196.97 $ 349.31
EQ/Balanced $ 101.18 $ 145.31 $ 191.87 $ 339.56
EQ/Bernstein Diversified Value $ 101.70 $ 146.86 $ 194.42 $ 344.44
EQ/Calvert Socially Responsible $ 102.75 $ 149.96 $ 199.51 $ 354.14
EQ/Capital Guardian International $ 104.33 $ 154.60 $ 207.09 $ 368.51
EQ/Capital Guardian Research $ 101.70 $ 146.86 $ 194.42 $ 344.44
EQ/Capital Guardian U.S. Equity $ 101.70 $ 146.86 $ 194.42 $ 344.44
EQ/Emerging Markets Equity $ 110.62 $ 173.01 $ 236.95 $ 423.79
EQ/Equity 500 Index $ 97.61 $ 134.70 $ 174.37 $ 305.65
EQ/Evergreen Omega $ 101.70 $ 146.86 $ 194.42 $ 344.44
EQ/FI Mid Cap $ 102.23 $ 148.41 $ 196.97 $ 349.31
EQ/FI Small/Mid Cap Value $ 103.28 $ 151.51 $ 202.04 $ 358.96
EQ/High Yield $ 101.39 $ 145.93 $ 192.89 $ 341.52
EQ/International Equity Index $ 103.28 $ 151.51 $ 202.04 $ 358.96
EQ/J.P. Morgan Core Bond $ 100.13 $ 142.19 $ 186.75 $ 329.71
EQ/Janus Large Cap Growth $ 103.80 $ 153.05 $ 204.57 $ 363.75
EQ/Lazard Small Cap Value $ 103.28 $ 151.51 $ 202.04 $ 358.96
EQ/Marsico Focus $ 103.80 $ 153.05 $ 204.57 $ 363.75
EQ/Mercury Basic Value Equity $ 101.70 $ 146.86 $ 194.42 $ 344.44
EQ/MFS Emerging Growth Companies $ 101.91 $ 147.48 $ 195.44 $ 346.39
EQ/MFS Investors Trust $ 101.70 $ 146.86 $ 194.42 $ 344.44
EQ/MFS Research $ 101.70 $ 146.86 $ 194.42 $ 344.44
EQ/Putnam Growth & Income Value $ 101.70 $ 146.86 $ 194.42 $ 344.44
EQ/Putnam International Equity $ 104.85 $ 156.14 $ 209.61 $ 373.25
EQ/Putnam Voyager $ 101.70 $ 146.86 $ 194.42 $ 344.44
EQ/Small Company Index $ 100.65 $ 143.75 $ 189.31 $ 334.64
- --------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------
IF YOU DO NOT SURRENDER YOUR CONTRACT AT
THE END OF EACH PERIOD SHOWN, THE
EXPENSES WOULD BE:
---------------------------------------------------
1 YEAR 3 YEARS 5 YEARS 10 YEARS
- --------------------------------------------------------------------------------------------------
AXA Premier VIP Core Bond $ 31.70 $ 96.86 $ 164.42 $ 344.44
AXA Premier VIP Health Care $ 41.15 $ 124.53 $ 209.40 $ 428.25
AXA Premier VIP International Equity $ 40.62 $ 123.01 $ 206.95 $ 423.79
AXA Premier VIP Large Cap Core Equity $ 35.90 $ 109.22 $ 184.63 $ 382.65
AXA Premier VIP Large Cap Growth $ 35.90 $ 109.22 $ 184.63 $ 382.65
AXA Premier VIP Large Cap Value $ 35.90 $ 109.22 $ 184.63 $ 382.65
AXA Premier VIP Small/Mid Cap Growth $ 38.52 $ 116.90 $ 197.09 $ 405.74
AXA Premier VIP Small/Mid Cap Value $ 38.52 $ 116.90 $ 197.09 $ 405.74
AXA Premier VIP Technology $ 41.15 $ 124.53 $ 209.40 $ 428.25
EQ/Aggressive Stock $ 31.60 $ 96.55 $ 163.91 $ 343.47
EQ/Alliance Common Stock $ 29.92 $ 91.57 $ 155.72 $ 327.72
EQ/Alliance Global $ 33.28 $ 101.51 $ 172.04 $ 358.96
EQ/Alliance Growth and Income $ 30.97 $ 94.68 $ 160.85 $ 337.60
EQ/Alliance Growth Investors $ 30.97 $ 94.68 $ 160.85 $ 337.60
EQ/Alliance Intermediate Government Securities $ 30.86 $ 94.37 $ 160.34 $ 336.61
EQ/Alliance International $ 35.90 $ 109.22 $ 184.63 $ 382.65
EQ/Alliance Money Market $ 28.55 $ 87.51 $ 149.03 $ 314.74
EQ/Alliance Premier Growth $ 33.80 $ 103.05 $ 174.57 $ 363.75
EQ/Alliance Quality Bond $ 30.65 $ 93.75 $ 159.31 $ 334.64
EQ/Alliance Small Cap Growth $ 32.86 $ 100.27 $ 170.01 $ 355.11
EQ/Alliance Technology $ 33.80 $ 103.05 $ 174.57 $ 363.75
EQ/AXP New Dimensions $ 31.70 $ 96.86 $ 164.42 $ 344.44
EQ/AXP Strategy Aggressive $ 32.23 $ 98.41 $ 166.97 $ 349.31
EQ/Balanced $ 31.18 $ 95.31 $ 161.87 $ 339.56
EQ/Bernstein Diversified Value $ 31.70 $ 96.86 $ 164.42 $ 344.44
EQ/Calvert Socially Responsible $ 32.75 $ 99.96 $ 169.51 $ 354.14
EQ/Capital Guardian International $ 34.33 $ 104.60 $ 177.09 $ 368.51
EQ/Capital Guardian Research $ 31.70 $ 96.86 $ 164.42 $ 344.44
EQ/Capital Guardian U.S. Equity $ 31.70 $ 96.86 $ 164.42 $ 344.44
EQ/Emerging Markets Equity $ 40.62 $ 123.01 $ 206.95 $ 423.79
EQ/Equity 500 Index $ 27.61 $ 84.70 $ 144.37 $ 305.65
EQ/Evergreen Omega $ 31.70 $ 96.86 $ 164.42 $ 344.44
EQ/FI Mid Cap $ 32.23 $ 98.41 $ 166.97 $ 349.31
EQ/FI Small/Mid Cap Value $ 33.28 $ 101.51 $ 172.04 $ 358.96
EQ/High Yield $ 31.39 $ 95.93 $ 162.89 $ 341.52
EQ/International Equity Index $ 33.28 $ 101.51 $ 172.04 $ 358.96
EQ/J.P. Morgan Core Bond $ 30.13 $ 92.19 $ 156.75 $ 329.71
EQ/Janus Large Cap Growth $ 33.80 $ 103.05 $ 174.57 $ 363.75
EQ/Lazard Small Cap Value $ 33.28 $ 101.51 $ 172.04 $ 358.96
EQ/Marsico Focus $ 33.80 $ 103.05 $ 174.57 $ 363.75
EQ/Mercury Basic Value Equity $ 31.70 $ 96.86 $ 164.42 $ 344.44
EQ/MFS Emerging Growth Companies $ 31.91 $ 97.48 $ 165.44 $ 346.39
EQ/MFS Investors Trust $ 31.70 $ 96.86 $ 164.42 $ 344.44
EQ/MFS Research $ 31.70 $ 96.86 $ 164.42 $ 344.44
EQ/Putnam Growth & Income Value $ 31.70 $ 96.86 $ 164.42 $ 344.44
EQ/Putnam International Equity $ 34.85 $ 106.14 $ 179.61 $ 373.25
EQ/Putnam Voyager $ 31.70 $ 96.86 $ 164.42 $ 344.44
EQ/Small Company Index $ 30.65 $ 93.75 $ 159.31 $ 334.64
- --------------------------------------------------------------------------------------------------
(1) The amount accumulated from the $1,000 contribution could not be paid in the
form of an annuity payout option at the end of any of the periods shown in
the examples. This is because if the amount applied to purchase an annuity
payout option is less than $2,000, or the initial payment is less than $20,
we may pay the amount to you in a single sum instead of as payments under an
annuity payout option. See "Accessing your money" in the prospectus.
IF YOU ELECT A VARIABLE ANNUITY PAYOUT OPTION:
Assuming an annuity payout option could be issued, (see Note (1) above), and you
elect a variable annuity payout option, the expenses shown in the above examples
for "If you do not surrender your contract" would, in each case, be increased by
$5.44 based on the average amount applied to annuity payout options in 2001. See
"Annuity administrative fee" in "Charges and expenses" in your prospectus.
(5) DISRUPTIVE TRANSFER ACTIVITY
The following reflects Equitable's current policy with regard to market
timing-related transaction requests.
8
You should note that the EQUI-VEST(R) contracts are not designed for
professional "market timing" organizations, or other organizations or
individuals engaging in a market timing strategy, making programmed transfers,
frequent transfers or transfers that are large in relation to the total assets
of the underlying portfolio. These kinds of strategies and transfer activities
are disruptive to the underlying portfolios in which the variable investment
options invest. If we determine that your transfer patterns among the variable
investment options are disruptive to the underlying portfolios, we may, among
other things, restrict the availability of personal telephone requests,
facsimile transmissions, automated telephone services, Internet services or any
electronic transfer services. We may also refuse to act on transfer instructions
of an agent acting under a power of attorney who is acting on behalf of one or
more owners. In making these determinations, we may consider the combined
transfer activity of annuity contracts and life insurance policies that we
believe are under common ownership, control or direction.
We currently consider transfers into and out of (or vice versa) the same
variable investment option within a five business day period as potentially
disruptive transfer activity. In order to prevent disruptive activity, we
monitor the frequency of transfers, including the size of transfers in relation
to portfolio assets, in each underlying portfolio, and we take appropriate
action, which may include the actions described above to restrict availability
of voice, fax and automated transaction services, when we consider the activity
of owners to be disruptive. We currently provide a letter to owners who have
engaged in such activity of our intention to restrict such services. However, we
may not continue to provide such letters. We may also, in our sole discretion
and without further notice, change what we consider disruptive transfer
activity, as well as change our procedures to restrict this activity.
(6) MINIMUM DISTRIBUTION WITHDRAWALS
Currently, we do not impose a withdrawal charge on minimum distribution
withdrawals that are calculated based on the proposed revisions to the minimum
distribution rules and your EQUI-VEST(R) contract account value. (See "Required
minimum distributions" in "Tax information" later in this Prospectus.) The
minimum distribution withdrawal will be taken into account in determining if any
subsequent withdrawal taken in the same contract year exceeds the 10% free
withdrawal amount.
(7) ANNUAL ADMINISTRATIVE CHARGE
We currently waive the annual administrative charge that would otherwise be
deducted in the next contract year under any individually owned EQUI-VEST(R)
contract/certificate having an account value that, when combined with the
account value of other EQUI-VEST(R) contracts/certificates owned by the same
person, exceeds $100,000 in the aggregate (as determined in February of each
year). This does not apply to EQUI-VEST(R) contracts/certificates owned by
different members of the same household. We may change or discontinue this
practice at any time without prior notice.
(8) OUR BUSINESS DAY
Our business day generally is any day on which the New York Stock Exchange is
open for trading. A business day does not include any day we choose not to open
due to emergency conditions. We may also close early due to emergency
conditions. Our business day generally ends at 4:00 p.m. Eastern time for
purposes of determining the date when contributions are applied and any other
transaction requests are processed. Contributions will be applied and any other
transaction requests will be processed when they are received along with all the
required information unless another date applies as indicated below.
o If your contribution, transfer, or any other transaction request,
containing all the required information, reaches us on a non-business day or
after the close of the business day, we will use the next business day.
o When a charge is to be deducted on a contract date anniversary that is a
non-business day, we will deduct the charge on the next business day.
o Quarterly rebalancing will be processed on a calendar year basis and
semi-annual or annual rebalancing will be processed on the first business
day of the month. Rebalancing will not be done retroactively.
(9) PAYMENT OF DEATH BENEFIT
The death benefit is equal to the greater of (i) the account value (without
adjustment for any otherwise applicable negative market value adjustment) as of
the date we receive satisfactory proof of the annuitant's death, any required
instructions for the method of payment, information and forms necessary to
effect payment or, if greater, (ii) the "minimum death benefit" or for Series
800 only, the ratcheted death benefit, if applicable. The minimum death benefit
is equal to your total contributions, less withdrawals and any withdrawal
charges, and any taxes that apply.
(10) TAX INFORMATION
The discussion in the Prospectus is amended to reflect changes due to the
Economic Growth and Tax Relief Reconciliation Act of 2001, and proposed
revisions to the proposed required minimum distribution Treasury Regulations.
TRADITIONAL INDIVIDUAL RETIREMENT ANNUITIES (IRAS) AND ROTH INDIVIDUAL
RETIREMENT ANNUITIES (ROTH IRAS)
ADDITIONAL "SAVER'S CREDIT" FOR CONTRIBUTIONS TO A TRADITIONAL IRA OR ROTH IRA.
Beginning in 2002, you may be eligible for a nonrefundable income tax credit for
contributions you make to a traditional IRA or Roth IRA. If you qualify, you may
take this credit even though your traditional IRA con-
9
tribution is already fully or partially deductible. To take advantage of this
"saver's credit" you must be age 18 or over before the end of 2002. You cannot
be a full-time student or claimed as a dependent on another's tax return, and
your adjusted gross income cannot exceed $50,000. The amount of the tax credit
you can get varies from 10% of your contribution to 50% of your contribution,
and depends on your income tax filing status and your adjusted gross income. The
maximum annual contribution eligible for the saver's credit is $2,000. If you
and your spouse file a joint return, and each of you qualifies, each is eligible
for a maximum annual contribution of $2,000. Your saver's credit may also be
reduced if you take or have taken a taxable distribution from any plan eligible
for a saver's credit contribution--even if you make a contribution to one plan
and take the distribution from another plan--during the "testing period." The
"testing period" begins two years before the year for which you make the
contribution and ends when your tax return is due for the year for which you
make the contribution. Saver's-credit-eligible contributions may be made to a
401(k) plan, 403(b) TSA, governmental 457(b) plan, SIMPLE IRA, or SARSEP IRA, as
well as to a traditional IRA or Roth IRA.
CONTRIBUTIONS
INCREASED LIMITS ON REGULAR CONTRIBUTIONS TO BOTH TYPES OF IRAS. The maximum
amount of regular contributions to all IRAs for any individual (including both
traditional and Roth IRAs) for 2002 has been increased from $2,000 to $3,000. If
the traditional IRA owner is at least age 50 but under age 70-1/2 at any time
during 2002 an additional catch-up contribution of up to $500 for 2002 may be
made. For Roth IRAs, an additional catch-up contribution of up to $500 for 2002
may be made if the Roth IRA owner is at least age 50 at any time during 2002.
If the traditional IRA owner is single and covered by a retirement plan during
any part of the taxable year, the deduction for traditional IRA contributions
phases out with AGI between $34,000 and $44,000 in 2002. If the traditional IRA
owner is married, files a joint return, and is covered by a retirement plan
during any part of the taxable year, the deduction for traditional IRA
contributions phases out with AGI between $54,000 and $64,000 in 2002.
ROLLOVER CONTRIBUTIONS TO TRADITIONAL IRAS
Rollover contributions may be made to a traditional IRA (but not a Roth IRA)
from "eligible retirement plans" which include other traditional IRAs, qualified
plans, 403(b) arrangements ("TSAs") and beginning in 2002, governmental 457(b)
plans (also known as "governmental EDC plans").
Rollover contributions to traditional IRAs were historically limited to pre-tax
funds. Beginning in 2002, after-tax contributions to a qualified plan or TSA may
be rolled over to a traditional IRA (but not a Roth IRA). You should be aware
before you roll over any after-tax contributions that you are responsible for
calculating the taxable amount of any distributions you take from the
traditional IRA.
You should discuss with your tax advisor whether you should consider rolling
over funds from one type of tax-qualified retirement plan to another, because
the funds will generally be subject to the rules of the recipient plan and the
features of the current plan may no longer be available. For example,
distributions from a governmental 457(b) plan are generally not subject to the
additional 10-percent federal income tax penalty for pre-age 59-1/2
distributions. If you roll over funds from a governmental 457(b) plan into an
eligible retirement plan which is not a governmental 457(b) plan (such as a
traditional IRA), any subsequent distributions may be subject to this penalty.
ROLLOVER DISTRIBUTIONS FROM TRADITIONAL IRAS; ROLLOVERS BETWEEN ELIGIBLE
RETIREMENT PLANS
Historically, a rollover from a traditional IRA could only be made to qualified
plan (or TSA) if the traditional IRA served as a "conduit" for only qualified
plan (or only TSA) funds. Beginning in 2002, these rules have been substantially
liberalized. Eligible rollover distributions from qualified plans, TSAs,
governmental 457(b) plans and traditional IRAs may be rolled over into other
such plans. Therefore, the following are eligible to receive tax-free rollover
distributions from a traditional IRA: another traditional IRA, a qualified plan,
a TSA, or a governmental 457(b) plan. A surviving spouse beneficiary may roll
over funds from the deceased spouse's traditional IRA into these "eligible
retirement plans."
After-tax contributions in a traditional IRA cannot be rolled over from your
traditional IRA into, or back into, a qualified plan, TSA or governmental 457(b)
plan.
The recipient eligible retirement plan must agree to take the distribution. An
eligible retirement plan is not legally required to accept a rollover. Before
you decide to roll over your distribution to another eligible retirement plan,
you should find out whether the plan accepts rollover contributions from other
plan types, and if so, the types of distributions it accepts as rollover
contributions. You should also find out about any documents that are required to
be completed before the receiving plan will accept a rollover. Check with the
administrator of the plan that is to receive your rollover prior to making the
rollover. If an eligible retirement plan accepts your rollover, the plan may
restrict subsequent distributions of the rollover amount or may require your
spouse's consent for any subsequent distribution. A subsequent distribution from
the plan that accepts your rollover may also be subject to different tax
treatment than distributions from your traditional IRA.
If you roll over a distribution from your traditional IRA into a governmental
457(b) plan, the recipient governmental 457(b) plan must agree to separately
account for the rolled-over funds. Even though distributions from a governmental
457(b) plan are generally not subject to the additional 10-percent federal
income tax penalty for pre-age 59-1/2 distributions, any subsequent
distributions from the governmental 457(b) plan attributable to the IRA funds
rolled over continue to be subject to this penalty.
10
REQUIRED MINIMUM DISTRIBUTIONS
HOW YOU CAN CALCULATE REQUIRED MINIMUM DISTRIBUTIONS. There are two approaches
to taking required minimum distributions--"account-based" or "annuity-based."
Account-based method. If you choose an account-based method, you divide the
value of your traditional IRA as of December 31st of the past calendar year by a
number corresponding to your age from an IRS table. This gives you the required
minimum distribution amount for that particular IRA for that year. If your
spouse is your sole beneficiary and more than 10 years younger than you, the
dividing number you use may be from another IRS table and may produce a smaller
lifetime required minimum distribution amount. Regardless of the table used, the
required minimum distribution amount will vary each year as the account value
and the divisors change.
Annuity-based method. If you choose an annuity-based method, you do not have to
do annual calculations. You apply the account value to an annuity payout for
your life or the joint lives of you and a designated beneficiary, or for a
period certain not extending beyond applicable life expectancies.
If you initially choose an account-based method, you may be able to apply your
traditional IRA funds later to a life annuity-based payout, with any certain
period not exceeding remaining life expectancy.
WHAT ARE THE REQUIRED MINIMUM DISTRIBUTION PAYMENTS AFTER YOU DIE? For a
traditional IRA, these could vary depending on whether you die before or after
your Required Beginning Date for lifetime required minimum distribution
payments, and on the status of your beneficiary. For Roth IRAs, lifetime minimum
distributions do not apply but distributions are required after death.
INDIVIDUAL BENEFICIARY. Regardless of whether your death occurs before or after
your Required Beginning Date, under the revised proposed rules an individual
death beneficiary calculates annual post-death required minimum distribution
payments based on the beneficiary's life expectancy using the "term certain
method." That is, he or she determines his or her life expectancy using the life
expectancy tables as of the calendar year after the owner's death and reduces
that number by one each subsequent year.
If you die before your Required Beginning Date, the revised proposed rules
permit any individual beneficiary, including a spousal beneficiary, to elect
instead to apply the "5-year rule." Under this rule, instead of annual payments
having to be made beginning with the first in the year following the owner's
death, the entire account must be distributed by the end of the fifth year
following the year of the owner's death. No distribution is required for a year
before that fifth year.
SPOUSAL BENEFICIARY. If you die after your Required Beginning Date, and your
death beneficiary is your surviving spouse, your spouse has a number of choices.
The revised proposed rules permit post-death distributions to be made over your
spouse's single life expectancy. Any amounts distributed after that surviving
spouse's death are made over the spouse's life expectancy calculated in the year
of his/her death, reduced by one for each subsequent year. In some
circumstances, your surviving spouse may elect to become the owner of the
traditional IRA and halt distributions until he or she reaches age 70-1/2, or
roll over amounts from your traditional IRA into his/her own traditional IRA or
other eligible retirement plan.
If you die before your Required Beginning Date, and the death beneficiary is
your surviving spouse, the revised proposed rules permit the spouse to delay
starting payments over his/her life expectancy until the year in which you would
have attained age 70-1/2.
NON-INDIVIDUAL BENEFICIARY. If you die after your Required Beginning Date, and
your death beneficiary is a non-individual such as the estate, the revised
proposed rules permit the beneficiary to calculate post-death required minimum
distribution amounts based on the owner's life expectancy in the year of death.
HOWEVER, NOTE THAT WE NEED AN INDIVIDUAL ANNUITANT TO KEEP AN ANNUITY
CONTRACT/CERTIFICATE IN FORCE. IF THE BENEFICIARY IS NOT AN INDIVIDUAL, WE MUST
DISTRIBUTE AMOUNTS REMAINING IN THE ANNUITY CONTRACT AFTER THE DEATH OF THE
ANNUITANT.
If you die before your Required Beginning Date for lifetime required minimum
distribution payments, and the death beneficiary is a non-individual such as the
estate, the revised proposed rules continue to apply the 5-year rule discussed
above under "Individual beneficiary." PLEASE NOTE THAT WE NEED AN INDIVIDUAL
ANNUITANT TO KEEP AN ANNUITY CONTRACT/CERTIFICATE IN FORCE. IF THE BENEFICIARY
IS NOT AN INDIVIDUAL, WE MUST DISTRIBUTE AMOUNTS REMAINING IN THE ANNUITY
CONTRACT AFTER THE DEATH OF THE ANNUITANT.
(11) BENEFICIARY CONTINUATION OPTION
Upon your death under a Traditional IRA, Roth IRA or QP IRA contract, your
beneficiary may generally elect to keep the contract in your name and receive
distributions under the contract instead of receiving the death benefit in a
single sum. In order to elect this option, the beneficiary must be an
individual. Certain trusts with only individual beneficiaries will be treated as
individuals. We require this election to be made within nine months following
the date we receive proof of your death and before any other inconsistent
election is made. We will not process any beneficiary continuation option
election for which we have not received the election by December 15 of the
calendar year following your death. Beneficiaries who do not make a timely
election will not be eligible for the beneficiary continuation option. As of the
date we receive satisfactory proof of death, any required instructions,
information and forms necessary to effect the beneficiary continuation option
feature, we will increase the account value to equal the minimum death benefit
if such death benefit is greater than such account value. The minimum amount
that is required in order to elect the beneficiary continuation option is $5,000
for each beneficiary.
11
Under the beneficiary continuation option:
o the contract continues in your name for the benefit of your beneficiary.
o the beneficiary may make transfers among the investment options but no
additional contributions will be permitted.
o any death benefit (including the minimum death provision, if applicable)
provision will no longer be in effect.
o the beneficiary may choose at any time to withdraw all or a portion of
the account value and no withdrawal charges will apply. Any partial
withdrawal must be at least $300.
o Upon the death of the beneficiary, the beneficiary named by the original
beneficiary has the option to either continue taking minimum distributions
based on the remaining life expectancy of the deceased beneficiary or to
receive any remaining interest in the contract in a lump sum. The option
elected will be processed (unless that beneficiary elects to continue the
payment method that was elected by the original beneficiary) when we receive
satisfactory proof of death, any required instructions for the method of
payment and any required information and forms necessary to effect payment.
Generally, payments will be made once a year to the beneficiary over the
beneficiary's life expectancy (determined in the calendar year after your death,
and determined on a term certain basis). These payments must begin no later than
December 31st of the calendar year after the year of your death. However, if you
die before your Required Beginning Date for Required Minimum Distributions as
discussed in "Tax Information" later in this Prospectus, your beneficiary may
choose the "5-year rule" instead of annual payments over life expectancy. If
your beneficiary chooses this, your beneficiary may take withdrawals as desired,
but the entire account value must be fully withdrawn by December 31st of the 5th
calendar year after your death.
(12) CONDENSED FINANCIAL INFORMATION
EQUI-VEST(R) CONTRACTS
UNIT VALUES AND NUMBER OF UNITS OUTSTANDING AT YEAR END FOR EACH VARIABLE
INVESTMENT OPTION, EXCEPT FOR THOSE OPTIONS BEING OFFERED FOR THE FIRST TIME
AFTER DECEMBER 31, 2001 ARE FOR CONTRACTS OFFERED UNDER SEPARATE ACCOUNT A WITH
THE SAME ASSET BASED CHARGE OF 1.20%
- ---------------------------------------------------------------------------------------------------------
FOR THE
YEARS ENDING
DECEMBER 31,
1998
- ---------------------------------------------------------------------------------------------------------
EQ/AGGRESSIVE STOCK
- ---------------------------------------------------------------------------------------------------------
Unit value $ 90.25
Number of units outstanding (000's) --
- ---------------------------------------------------------------------------------------------------------
EQ/ALLIANCE COMMON STOCK
- ---------------------------------------------------------------------------------------------------------
Unit value $ 102.87
Number of units outstanding (000's) --
- ---------------------------------------------------------------------------------------------------------
EQ/ALLIANCE GLOBAL
- ---------------------------------------------------------------------------------------------------------
Unit value $ 98.37
Number of units outstanding (000's) --
- ---------------------------------------------------------------------------------------------------------
EQ/ALLIANCE GROWTH AND INCOME
- ---------------------------------------------------------------------------------------------------------
Unit value $ 102.73
Number of units outstanding (000's) --
- ---------------------------------------------------------------------------------------------------------
EQ/ALLIANCE GROWTH INVESTORS
- ---------------------------------------------------------------------------------------------------------
Unit value $ 101.93
Number of units outstanding (000's) --
- ---------------------------------------------------------------------------------------------------------
EQ/ALLIANCE INTERMEDIATE GOVERNMENT SECURITIES
- ---------------------------------------------------------------------------------------------------------
Unit value $ 103.32
Number of units outstanding (000's) --
- ---------------------------------------------------------------------------------------------------------
EQ/ALLIANCE INTERNATIONAL
- ---------------------------------------------------------------------------------------------------------
Unit value $ 93.00
Number of units outstanding (000's) --
- ---------------------------------------------------------------------------------------------------------
EQ/ALLIANCE MONEY MARKET
- ---------------------------------------------------------------------------------------------------------
Unit value $ 101.68
Number of units outstanding (000's) --
- ---------------------------------------------------------------------------------------------------------
EQ/ALLIANCE PREMIER GROWTH
- ---------------------------------------------------------------------------------------------------------
Unit value --
Number of units outstanding (000's) --
- ---------------------------------------------------------------------------------------------------------
- -------------------------------------------------------------------------------------------------------------------------------
FOR THE YEARS ENDING DECEMBER 31,
1999 2000 2001
- -------------------------------------------------------------------------------------------------------------------------------
EQ/AGGRESSIVE STOCK
- -------------------------------------------------------------------------------------------------------------------------------
Unit value $ 105.70 $ 90.50 $ 66.90
Number of units outstanding (000's) 17 71 100
- -------------------------------------------------------------------------------------------------------------------------------
EQ/ALLIANCE COMMON STOCK
- -------------------------------------------------------------------------------------------------------------------------------
Unit value $ 126.92 $ 107.54 $ 94.83
Number of units outstanding (000's) 105 702 944
- -------------------------------------------------------------------------------------------------------------------------------
EQ/ALLIANCE GLOBAL
- -------------------------------------------------------------------------------------------------------------------------------
Unit value $ 134.29 $ 107.66 $ 84.81
Number of units outstanding (000's) 20 181 235
- -------------------------------------------------------------------------------------------------------------------------------
EQ/ALLIANCE GROWTH AND INCOME
- -------------------------------------------------------------------------------------------------------------------------------
Unit value $ 120.14 $ 129.01 $ 125.48
Number of units outstanding (000's) 37 262 526
- -------------------------------------------------------------------------------------------------------------------------------
EQ/ALLIANCE GROWTH INVESTORS
- -------------------------------------------------------------------------------------------------------------------------------
Unit value $ 127.17 $ 116.93 $ 100.93
Number of units outstanding (000's) 21 222 280
- -------------------------------------------------------------------------------------------------------------------------------
EQ/ALLIANCE INTERMEDIATE GOVERNMENT SECURITIES
- -------------------------------------------------------------------------------------------------------------------------------
Unit value $ 101.97 $ 109.71 $ 116.93
Number of units outstanding (000's) 1 16 112
- -------------------------------------------------------------------------------------------------------------------------------
EQ/ALLIANCE INTERNATIONAL
- -------------------------------------------------------------------------------------------------------------------------------
Unit value $ 126.30 $ 95.90 $ 72.66
Number of units outstanding (000's) 3 36 45
- -------------------------------------------------------------------------------------------------------------------------------
EQ/ALLIANCE MONEY MARKET
- -------------------------------------------------------------------------------------------------------------------------------
Unit value $ 105.21 $ 110.19 $ 112.74
Number of units outstanding (000's) 17 57 125
- -------------------------------------------------------------------------------------------------------------------------------
EQ/ALLIANCE PREMIER GROWTH
- -------------------------------------------------------------------------------------------------------------------------------
Unit value $ 116.42 $ 93.88 $ 70.52
Number of units outstanding (000's) 36 350 438
- -------------------------------------------------------------------------------------------------------------------------------
12
EQUI-VEST(R) CONTRACTS (CONTINUED)
UNIT VALUES AND NUMBER OF UNITS OUTSTANDING AT YEAR END FOR EACH VARIABLE
INVESTMENT OPTION, EXCEPT FOR THOSE OPTIONS BEING OFFERED FOR THE FIRST TIME
AFTER DECEMBER 31, 2001 ARE FOR CONTRACTS OFFERED UNDER SEPARATE ACCOUNT A WITH
THE SAME ASSET BASED CHARGE OF 1.20% (CONTINUED)
- ---------------------------------------------------------------------------------------------------------
FOR THE
YEARS ENDING
DECEMBER 31,
1998
- ---------------------------------------------------------------------------------------------------------
EQ/ALLIANCE QUALITY BOND
- ---------------------------------------------------------------------------------------------------------
Unit value $ 103.62
Number of units outstanding (000's) --
- ---------------------------------------------------------------------------------------------------------
EQ/ALLIANCE SMALL CAP GROWTH
- ---------------------------------------------------------------------------------------------------------
Unit value $ 86.94
Number of units outstanding (000's) --
- ---------------------------------------------------------------------------------------------------------
EQ/ALLIANCE TECHNOLOGY
- ---------------------------------------------------------------------------------------------------------
Unit value --
Number of units outstanding (000's) --
- ---------------------------------------------------------------------------------------------------------
EQ/AXP NEW DIMENSIONS
- ---------------------------------------------------------------------------------------------------------
Unit value --
Number of units outstanding (000's) --
- ---------------------------------------------------------------------------------------------------------
EQ/AXP STRATEGY AGGRESSIVE
- ---------------------------------------------------------------------------------------------------------
Unit value --
Number of units outstanding (000's) --
- ---------------------------------------------------------------------------------------------------------
EQ/BALANCED
- ---------------------------------------------------------------------------------------------------------
Unit value $ 102.39
Number of units outstanding (000's) --
- ---------------------------------------------------------------------------------------------------------
EQ/BERNSTEIN DIVERSIFIED VALUE
- ---------------------------------------------------------------------------------------------------------
Unit value --
Number of units outstanding (000's) --
- ---------------------------------------------------------------------------------------------------------
EQ/CALVERT SOCIALLY RESPONSIBLE
- ---------------------------------------------------------------------------------------------------------
Unit Value --
Number of units outstanding (000's) --
- ---------------------------------------------------------------------------------------------------------
EQ/CAPITAL GUARDIAN RESEARCH
- ---------------------------------------------------------------------------------------------------------
Unit value --
Number of units outstanding (000's) --
- ---------------------------------------------------------------------------------------------------------
EQ/CAPITAL GUARDIAN U.S. EQUITY
- ---------------------------------------------------------------------------------------------------------
Unit value --
Number of units outstanding (000's) --
- ---------------------------------------------------------------------------------------------------------
EQ/EMERGING MARKETS EQUITY
- ---------------------------------------------------------------------------------------------------------
Unit value $ 81.49
Number of units outstanding (000's) --
- ---------------------------------------------------------------------------------------------------------
EQ/EQUITY 500 INDEX
- ---------------------------------------------------------------------------------------------------------
Unit value $ 103.69
Number of units outstanding (000's) --
- ---------------------------------------------------------------------------------------------------------
EQ/EVERGREEN OMEGA
- ---------------------------------------------------------------------------------------------------------
Unit value --
Number of units outstanding (000's) --
- ---------------------------------------------------------------------------------------------------------
EQ/FI MID CAP
- ---------------------------------------------------------------------------------------------------------
Unit value --
Number of units outstanding (000's) --
- ---------------------------------------------------------------------------------------------------------
EQ/FI SMALL/MID CAP VALUE
- ---------------------------------------------------------------------------------------------------------
Unit value $ 82.88
Number of units outstanding (000's) --
- ---------------------------------------------------------------------------------------------------------
EQ/HIGH YIELD
- ---------------------------------------------------------------------------------------------------------
Unit value $ 89.20
Number of units outstanding (000's) --
- ---------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------------------
FOR THE YEARS ENDING DECEMBER 31,
1999 2000 2001
- ---------------------------------------------------------------------------------------------------------------------------------
EQ/ALLIANCE QUALITY BOND
- ---------------------------------------------------------------------------------------------------------------------------------
Unit value $ 100.07 $ 110.03 $ 117.42
Number of units outstanding (000's) 4 27 112
- ---------------------------------------------------------------------------------------------------------------------------------
EQ/ALLIANCE SMALL CAP GROWTH
- ---------------------------------------------------------------------------------------------------------------------------------
Unit value $ 109.62 $ 123.09 $ 105.51
Number of units outstanding (000's) 2 98 166
- ---------------------------------------------------------------------------------------------------------------------------------
EQ/ALLIANCE TECHNOLOGY
- ---------------------------------------------------------------------------------------------------------------------------------
Unit value -- $ 66.17 $ 49.39
Number of units outstanding (000's) -- 128 196
- ---------------------------------------------------------------------------------------------------------------------------------
EQ/AXP NEW DIMENSIONS
- ---------------------------------------------------------------------------------------------------------------------------------
Unit value -- $ 82.91 $ 69.20
Number of units outstanding (000's) -- 2 14
- ---------------------------------------------------------------------------------------------------------------------------------
EQ/AXP STRATEGY AGGRESSIVE
- ---------------------------------------------------------------------------------------------------------------------------------
Unit value -- $ 62.15 $ 40.85
Number of units outstanding (000's) -- 2 24
- ---------------------------------------------------------------------------------------------------------------------------------
EQ/BALANCED
- ---------------------------------------------------------------------------------------------------------------------------------
Unit value $ 118.36 $ 115.59 $ 111.79
Number of units outstanding (000's) 11 101 287
- ---------------------------------------------------------------------------------------------------------------------------------
EQ/BERNSTEIN DIVERSIFIED VALUE
- ---------------------------------------------------------------------------------------------------------------------------------
Unit value -- -- $ 94.71
Number of units outstanding (000's) -- -- 71
- ---------------------------------------------------------------------------------------------------------------------------------
EQ/CALVERT SOCIALLY RESPONSIBLE
- ---------------------------------------------------------------------------------------------------------------------------------
Unit Value $ 107.64 $ 103.26 $ 87.02
Number of units outstanding (000's) -- -- --
- ---------------------------------------------------------------------------------------------------------------------------------
EQ/CAPITAL GUARDIAN RESEARCH
- ---------------------------------------------------------------------------------------------------------------------------------
Unit value $ 106.84 $ 111.80 $ 108.22
Number of units outstanding (000's) 1 9 31
- ---------------------------------------------------------------------------------------------------------------------------------
EQ/CAPITAL GUARDIAN U.S. EQUITY
- ---------------------------------------------------------------------------------------------------------------------------------
Unit value $ 101.69 $ 104.08 $ 100.76
Number of units outstanding (000's) 1 11 21
- ---------------------------------------------------------------------------------------------------------------------------------
EQ/EMERGING MARKETS EQUITY
- ---------------------------------------------------------------------------------------------------------------------------------
Unit value $ 157.61 $ 93.36 $ 87.48
Number of units outstanding (000's) 5 42 44
- ---------------------------------------------------------------------------------------------------------------------------------
EQ/EQUITY 500 INDEX
- ---------------------------------------------------------------------------------------------------------------------------------
Unit value $ 123.02 $ 109.63 $ 95.13
Number of units outstanding (000's) 50 258 367
- ---------------------------------------------------------------------------------------------------------------------------------
EQ/EVERGREEN OMEGA
- ---------------------------------------------------------------------------------------------------------------------------------
Unit value $ 106.63 $ 93.02 $ 76.26
Number of units outstanding (000's) -- 3 10
- ---------------------------------------------------------------------------------------------------------------------------------
EQ/FI MID CAP
- ---------------------------------------------------------------------------------------------------------------------------------
Unit value -- $ 100.02 $ 85.57
Number of units outstanding (000's) -- 9 106
- ---------------------------------------------------------------------------------------------------------------------------------
EQ/FI SMALL/MID CAP VALUE
- ---------------------------------------------------------------------------------------------------------------------------------
Unit value $ 83.36 $ 86.60 $ 88.97
Number of units outstanding (000's) 1 14 126
- ---------------------------------------------------------------------------------------------------------------------------------
EQ/HIGH YIELD
- ---------------------------------------------------------------------------------------------------------------------------------
Unit value $ 84.97 $ 76.49 $ 76.09
Number of units outstanding (000's) 5 28 49
- ---------------------------------------------------------------------------------------------------------------------------------
13
EQUI-VEST(R) CONTRACTS (CONTINUED)
UNIT VALUES AND NUMBER OF UNITS OUTSTANDING AT YEAR END FOR EACH VARIABLE
INVESTMENT OPTION, EXCEPT FOR THOSE OPTIONS BEING OFFERED FOR THE FIRST TIME
AFTER DECEMBER 31, 2001 ARE FOR CONTRACTS OFFERED UNDER SEPARATE ACCOUNT A WITH
THE SAME ASSET BASED CHARGE OF 1.20% (CONTINUED)
- --------------------------------------------------------------------------------------------------------
FOR THE
YEARS ENDING
DECEMBER 31,
1998
- --------------------------------------------------------------------------------------------------------
EQ/JANUS LARGE CAP GROWTH
- --------------------------------------------------------------------------------------------------------
Unit value --
Number of units outstanding (000's) --
- --------------------------------------------------------------------------------------------------------
EQ/MARSICO FOCUS
- --------------------------------------------------------------------------------------------------------
Unit value --
Number of units outstanding (000's) --
- --------------------------------------------------------------------------------------------------------
EQ/MERCURY BASIC VALUE EQUITY
- --------------------------------------------------------------------------------------------------------
Unit value $ 97.91
Number of units outstanding (000's) --
- --------------------------------------------------------------------------------------------------------
EQ/MFS EMERGING GROWTH COMPANIES
- --------------------------------------------------------------------------------------------------------
Unit value $ 103.53
Number of units outstanding (000's) --
- --------------------------------------------------------------------------------------------------------
EQ/MFS INVESTORS TRUST
- --------------------------------------------------------------------------------------------------------
Unit value --
Number of units outstanding (000's) --
- --------------------------------------------------------------------------------------------------------
EQ/MFS RESEARCH
- --------------------------------------------------------------------------------------------------------
Unit value $ 99.10
Number of units outstanding (000's) --
- --------------------------------------------------------------------------------------------------------
EQ/PUTNAM GROWTH & Income Value
- --------------------------------------------------------------------------------------------------------
Unit value $ 100.60
Number of units outstanding (000's) --
- --------------------------------------------------------------------------------------------------------
EQ/T. ROWE PRICE INTERNATIONAL STOCK
- --------------------------------------------------------------------------------------------------------
Unit value $ 94.15
Number of units outstanding (000's) --
- --------------------------------------------------------------------------------------------------------
- -------------------------------------------------------------------------------------------------------------------------------
FOR THE YEARS ENDING DECEMBER 31,
1999 2000 2001
- -------------------------------------------------------------------------------------------------------------------------------
EQ/JANUS LARGE CAP GROWTH
- -------------------------------------------------------------------------------------------------------------------------------
Unit value -- $ 83.99 $ 63.92
Number of units outstanding (000's) -- 12 119
- -------------------------------------------------------------------------------------------------------------------------------
EQ/MARSICO FOCUS
- -------------------------------------------------------------------------------------------------------------------------------
Unit value -- -- $ 105.94
Number of units outstanding (000's) -- -- --
- -------------------------------------------------------------------------------------------------------------------------------
EQ/MERCURY BASIC VALUE EQUITY
- -------------------------------------------------------------------------------------------------------------------------------
Unit value $ 115.06 $ 127.11 $ 132.52
Number of units outstanding (000's) 7 41 119
- -------------------------------------------------------------------------------------------------------------------------------
EQ/MFS EMERGING GROWTH COMPANIES
- -------------------------------------------------------------------------------------------------------------------------------
Unit value $ 177.65 $ 142.46 $ 92.82
Number of units outstanding (000's) 36 288 316
- -------------------------------------------------------------------------------------------------------------------------------
EQ/MFS INVESTORS TRUST
- -------------------------------------------------------------------------------------------------------------------------------
Unit value $ 104.53 $ 102.57 $ 85.14
Number of units outstanding (000's) 2 17 21
- -------------------------------------------------------------------------------------------------------------------------------
EQ/MFS RESEARCH
- -------------------------------------------------------------------------------------------------------------------------------
Unit value $ 120.55 $ 112.84 $ 87.16
Number of units outstanding (000's) 6 84 100
- -------------------------------------------------------------------------------------------------------------------------------
EQ/PUTNAM GROWTH & Income Value
- -------------------------------------------------------------------------------------------------------------------------------
Unit value $ 98.04 $ 103.43 $ 95.23
Number of units outstanding (000's) 3 17 32
- -------------------------------------------------------------------------------------------------------------------------------
EQ/T. ROWE PRICE INTERNATIONAL STOCK
- -------------------------------------------------------------------------------------------------------------------------------
Unit value $ 122.67 $ 98.56 $ 76.12
Number of units outstanding (000's) 3 42 65
- -------------------------------------------------------------------------------------------------------------------------------
EQUI-VEST(R) EXPRESS(SM) CONTRACTS
UNIT VALUES AND NUMBER OF UNITS OUTSTANDING AT YEAR END FOR EACH VARIABLE
INVESTMENT OPTION, EXCEPT FOR THOSE OPTIONS OFFERED FOR THE FIRST TIME ON OR
AFTER DECEMBER 31, 2001 ARE FOR CONTRACTS OFFERED UNDER SEPARATE ACCOUNT A WITH
THE SAME ASSET BASED CHARGE OF 0.95%
- ----------------------------------------------------------------------------------------------------------------------------------
FOR THE YEARS ENDING DECEMBER 31,
1999 2000 2001
- ----------------------------------------------------------------------------------------------------------------------------------
EQ/AGGRESSIVE STOCK
- -------------------------------------------------------------------------------------------------------------------------------
Unit value $ 112.33 $ 96.42 $ 71.46
Number of units outstanding (000s) 3 28 33
- -------------------------------------------------------------------------------------------------------------------------------
EQ/ALLIANCE COMMON STOCK
- -------------------------------------------------------------------------------------------------------------------------------
Unit value $ 111.02 $ 94.30 $ 83.37
Number of units outstanding (000's) 25 296 387
- -------------------------------------------------------------------------------------------------------------------------------
EQ/ALLIANCE GLOBAL
- -------------------------------------------------------------------------------------------------------------------------------
Unit value $ 119.52 $ 96.06 $ 75.87
Number of units outstanding (000's) 9 109 162
- -------------------------------------------------------------------------------------------------------------------------------
EQ/ALLIANCE GROWTH AND INCOME
- -------------------------------------------------------------------------------------------------------------------------------
Unit value $ 103.87 $ 111.81 $ 109.04
Number of units outstanding (000's) 14 145 300
- -------------------------------------------------------------------------------------------------------------------------------
EQ/ALLIANCE GROWTH INVESTORS
- -------------------------------------------------------------------------------------------------------------------------------
Unit value $ 112.30 $ 103.52 $ 89.58
Number of units outstanding (000's) 10 101 133
- -------------------------------------------------------------------------------------------------------------------------------
EQ/ALLIANCE INTERNATIONAL
- -------------------------------------------------------------------------------------------------------------------------------
Unit value $ 126.71 $ 96.46 $ 73.27
Number of units outstanding (000's) 1 33 48
- ----------------------------------------------------------------------------------------------------------------------------------
14
EQUI-VEST(R) EXPRESS(SM) CONTRACTS (CONTINUED)
UNIT VALUES AND NUMBER OF UNITS OUTSTANDING AT YEAR END FOR EACH VARIABLE
INVESTMENT OPTION, EXCEPT FOR THOSE OPTIONS OFFERED FOR THE FIRST TIME ON OR
AFTER DECEMBER 31, 2001 ARE FOR CONTRACTS OFFERED UNDER SEPARATE ACCOUNT A WITH
THE SAME ASSET BASED CHARGE OF 0.95% (CONTINUED)
- ----------------------------------------------------------------------------------------------------------------------------------
FOR THE YEARS ENDING DECEMBER 31,
1999 2000 2001
- ----------------------------------------------------------------------------------------------------------------------------------
EQ/ALLIANCE MONEY MARKET
- -------------------------------------------------------------------------------------------------------------------------------
Unit value $ 101.49 $ 106.56 $ 109.30
Number of units outstanding (000's) 43 139 270
- -------------------------------------------------------------------------------------------------------------------------------
EQ/ALLIANCE PREMIER GROWTH
- -------------------------------------------------------------------------------------------------------------------------------
Unit value $ 116.53 $ 94.20 $ 70.94
Number of units outstanding (000's) 21 242 305
- -------------------------------------------------------------------------------------------------------------------------------
EQ/ALLIANCE QUALITY BOND
- -------------------------------------------------------------------------------------------------------------------------------
Unit value $ 99.28 $ 109.43 $ 117.07
Number of units outstanding (000's) 4 26 113
- -------------------------------------------------------------------------------------------------------------------------------
EQ/ALLIANCE SMALL CAP GROWTH
- -------------------------------------------------------------------------------------------------------------------------------
Unit value $ 130.79 $ 147.23 $ 126.52
Number of units outstanding (000's) 1 63 129
- -------------------------------------------------------------------------------------------------------------------------------
EQ/ALLIANCE TECHNOLOGY
- -------------------------------------------------------------------------------------------------------------------------------
Unit value -- $ 66.29 $ 49.61
Number of units outstanding (000's) -- 92 168
- -------------------------------------------------------------------------------------------------------------------------------
EQ/AXP NEW DIMENSIONS
- -------------------------------------------------------------------------------------------------------------------------------
Unit value -- $ 82.97 $ 69.43
Number of units outstanding (000's) -- 2 14
- -------------------------------------------------------------------------------------------------------------------------------
EQ/AXP STRATEGY AGGRESSIVE
- -------------------------------------------------------------------------------------------------------------------------------
Unit value -- $ 62.20 $ 40.99
Number of units outstanding (000's) -- 5 28
- -------------------------------------------------------------------------------------------------------------------------------
EQ/BALANCED
- -------------------------------------------------------------------------------------------------------------------------------
Unit value $ 108.71 $ 105.98 $ 102.76
Number of units outstanding (000's) 2 34 136
- -------------------------------------------------------------------------------------------------------------------------------
EQ/CAPITAL GUARDIAN RESEARCH
- -------------------------------------------------------------------------------------------------------------------------------
Unit value $ 106.94 $ 112.19 $ 108,87
Number of units outstanding (000s) -- 4 9
- -------------------------------------------------------------------------------------------------------------------------------
EQ/CAPITAL GUARDIAN U.S. EQUITY
- -------------------------------------------------------------------------------------------------------------------------------
Unit value $ 101.79 $ 104.44 $ 101.37
Number of units outstanding (000's) -- 3 9
- -------------------------------------------------------------------------------------------------------------------------------
EQ/EMERGING MARKETS EQUITY
- -------------------------------------------------------------------------------------------------------------------------------
Unit value $ 147.71 $ 87.72 $ 82.40
Number of units outstanding (000's) 1 28 35
- -------------------------------------------------------------------------------------------------------------------------------
EQ/EQUITY 500 INDEX
- -------------------------------------------------------------------------------------------------------------------------------
Unit value $ 106.17 $ 94.85 $ 82.52
Number of units outstanding (000's) 9 78 139
- -------------------------------------------------------------------------------------------------------------------------------
EQ/EVERGREEN OMEGA
- -------------------------------------------------------------------------------------------------------------------------------
Unit value $ 106.73 $ 93.34 $ 76.72
Number of units outstanding (000's) -- 1 3
- -------------------------------------------------------------------------------------------------------------------------------
EQ/FI MID CAP
- -------------------------------------------------------------------------------------------------------------------------------
Unit value -- $ 100.11 $ 85.86
Number of units outstanding (000's) -- 7 77
- -------------------------------------------------------------------------------------------------------------------------------
EQ/FI SMALL/MID CAP VALUE
- -------------------------------------------------------------------------------------------------------------------------------
Unit value $ 106.09 $ 110.49 113.81
Number of units outstanding (000's) 1 13 105
- -------------------------------------------------------------------------------------------------------------------------------
EQ/HIGH YIELD
- -------------------------------------------------------------------------------------------------------------------------------
Unit value $ 99.34 $ 89.64 $ 89.40
Number of units outstanding (000's) 4 23 51
- ----------------------------------------------------------------------------------------------------------------------------------
15
EQUI-VEST(R) EXPRESS(SM) CONTRACTS (CONTINUED)
UNIT VALUES AND NUMBER OF UNITS OUTSTANDING AT YEAR END FOR EACH VARIABLE
INVESTMENT OPTION, EXCEPT FOR THOSE OPTIONS OFFERED FOR THE FIRST TIME ON OR
AFTER DECEMBER 31, 2001 ARE FOR CONTRACTS OFFERED UNDER SEPARATE ACCOUNT A WITH
THE SAME ASSET BASED CHARGE OF 0.95% (CONTINUED)
- ----------------------------------------------------------------------------------------------------------------------------------
FOR THE YEARS ENDING DECEMBER 31,
1999 2000 2001
- ----------------------------------------------------------------------------------------------------------------------------------
EQ/JANUS LARGE CAP GROWTH
- -------------------------------------------------------------------------------------------------------------------------------
Unit value -- $ 84.05 $ 64.14
Number of units outstanding (000's) -- 12 82
- -------------------------------------------------------------------------------------------------------------------------------
EQ/MARSICO FOCUS
- -------------------------------------------------------------------------------------------------------------------------------
Unit value -- -- $ 106.00
Number of units outstanding (000s) -- -- 1
- -------------------------------------------------------------------------------------------------------------------------------
EQ/MERCURY BASIC VALUE EQUITY
- -------------------------------------------------------------------------------------------------------------------------------
Unit value $ 97.22 $ 107.68 $ 112.55
Number of units outstanding (000's) 5 31 88
- -------------------------------------------------------------------------------------------------------------------------------
EQ/MFS EMERGING GROWTH COMPANIES
- -------------------------------------------------------------------------------------------------------------------------------
Unit value $ 157.69 $ 126.78 $ 82.81
Number of units outstanding (000's) 17 181 204
- -------------------------------------------------------------------------------------------------------------------------------
EQ/MFS INVESTORS TRUST
- -------------------------------------------------------------------------------------------------------------------------------
Unit value $ 104.63 $ 102.92 $ 85.65
Number of units outstanding (000's) 1 12 17
- -------------------------------------------------------------------------------------------------------------------------------
EQ/MFS RESEARCH
- -------------------------------------------------------------------------------------------------------------------------------
Unit value $ 116.97 $ 109.77 $ 85.00
Number of units outstanding (000's) 3 56 69
- -------------------------------------------------------------------------------------------------------------------------------
EQ/PUTNAM GROWTH & Income Value
- -------------------------------------------------------------------------------------------------------------------------------
Unit value $ 92.44 $ 97.78 $ 90.25
Number of units outstanding (000's) -- 6 13
- -------------------------------------------------------------------------------------------------------------------------------
EQ/T. ROWE PRICE INTERNATIONAL STOCK
- -------------------------------------------------------------------------------------------------------------------------------
Unit value $ 123.90 $ 99.81 $ 77.28
Number of units outstanding (000's) 3 43 85
- ----------------------------------------------------------------------------------------------------------------------------------
(13) EQUITABLE LIFE
We are The Equitable Life Assurance Society of the United States ("Equitable
Life"), a New York stock life insurance corporation. We have been doing business
since 1859. Equitable Life is a subsidiary of AXA Financial, Inc. (previously,
The Equitable Companies Incorporated). AXA, a French holding company for an
international group of insurance and related financial services companies, is
the sole shareholder of AXA Financial, Inc. As the sole shareholder, and under
its other arrangements with Equitable Life and Equitable Life's parent, AXA
exercises significant influence over the operations and capital structure of
Equitable Life and its parent. No company other than Equitable Life, however,
has any legal responsibility to pay amounts that Equitable Life owes under the
contract.
AXA Financial, Inc. and its consolidated subsidiaries managed approximately
$481.0 billion in assets as of December 31, 2001. For over 100 years Equitable
Life has been among the largest insurance companies in the United States. We
are licensed to sell life insurance and annuities in all fifty states, the
District of Columbia, Puerto Rico, and the U.S. Virgin Islands. Our home office
is located at 1290 Avenue of the Americas, New York, N.Y. 10104.
(14) INVESTMENT PERFORMANCE
The tables below show the average annual total return of the variable investment
options. Average annual total return is the annual rate of growth that would be
necessary to achieve the ending value of a contribution invested in the variable
investment options for the periods shown.
The tables take into account all fees and charges under the contracts, including
the withdrawal charges, the annual administrative charge and the optional
enhanced death benefit charge, if applicable, but do not reflect the charges
designed to approximate certain taxes that may be imposed on us, such as premium
taxes in your state if applicable.
The results shown under "length of option period" are based on the actual
historical investment experience of the variable investment option since its
inception. The results shown under "length of portfolio period" include some
periods when a variable investment option investing in the Portfolio had not yet
commenced operations. For those periods, we have adjusted the results of the
portfolios to reflect the charges under the contracts that would have applied
had the investment option been available.
For the "Alliance" portfolios (other than EQ/Alliance Premier Growth), we have
adjusted the results prior to October 1996, when Class IB shares for these
portfolios were not available, to reflect the 12b-1 fees currently imposed.
Finally, the results shown for the EQ/Alliance Money Market,
16
EQ/Balanced, EQ/Alliance Common Stock and EQ/Aggressive Stock options for
periods before those options were operated as part of a unit investment trust
reflect the results of the separate accounts that preceded them. The "Since
portfolio inception" figures for these options are based on the date of
inception of the preceding separate accounts. We have adjusted these results to
reflect the fee and expense structure in effect for Separate Account A as a unit
investment trust. See "The reorganization" in the SAI for additional
information.
EQ Advisors Trust commenced operations on May 1, 1997. For periods prior to
October 18, 1999 the Alliance portfolios (other than EQ/Alliance Premier Growth
and EQ/Alliance Technology) were part of The Hudson River Trust. On October 18,
1999, those portfolios became corresponding portfolios of EQ Advisors Trust. In
each case, the performance shown is for the indicated EQ Advisors Trust
portfolio and any predecessors that it may have had.
AXA Premier VIP Trust commenced operations on December 31, 2001 and performance
information for these portfolios is not available as of the date of this
prospectus.
All rates of return presented are time-weighted and include reinvestment of
investment income, including interest and dividends.
THE PERFORMANCE INFORMATION SHOWN BELOW AND THE PERFORMANCE INFORMATION THAT WE
ADVERTISE REFLECT PAST PERFORMANCE AND DO NOT INDICATE HOW THE VARIABLE
INVESTMENT OPTIONS MAY PERFORM IN THE FUTURE. SUCH INFORMATION ALSO DOES NOT
REPRESENT THE RESULTS EARNED BY ANY PARTICULAR INVESTOR. YOUR RESULTS WILL
DIFFER.
17
TABLE
AVERAGE ANNUAL TOTAL RETURN UNDER A CONTRACT SURRENDERED ON DECEMBER 31, 2001
EQUI-VEST(R) Express(SM):
- -------------------------------------------------------------------------------------------------------------
LENGTH OF OPTION PERIOD
-------------------------------------------------------------
SINCE OPTION
VARIABLE INVESTMENT OPTIONS 1 YEAR 5 YEARS 10 YEARS INCEPTION+*
- -------------------------------------------------------------------------------------------------------------
EQ/Aggressive Stock (32.94)% (6.69)% 1.18% 8.56%
- -------------------------------------------------------------------------------------------------------------
EQ/Alliance Common Stock (18.66)% 7.03% 10.20% 12.46%
- -------------------------------------------------------------------------------------------------------------
EQ/Alliance Global (28.08)% 0.92% -- 4.46%
- -------------------------------------------------------------------------------------------------------------
EQ/Alliance Growth and Income (9.55)% 11.39% -- 11.62%
- -------------------------------------------------------------------------------------------------------------
EQ/Alliance Growth Investors (20.52)% 4.45% -- 6.27%
- -------------------------------------------------------------------------------------------------------------
EQ/Alliance Intermediate Government Securities (0.22)% 2.99% -- 2.93%
- -------------------------------------------------------------------------------------------------------------
EQ/Alliance International (31.09)% (6.31)% -- (3.46)%
- -------------------------------------------------------------------------------------------------------------
EQ/Alliance Money Market (4.50)% 1.68% 1.25% 3.81%
- -------------------------------------------------------------------------------------------------------------
EQ/Alliance Premier Growth (31.74)% -- -- (17.79)%
- -------------------------------------------------------------------------------------------------------------
EQ/Alliance Quality Bond (0.09)% 3.60% -- 3.19%
- -------------------------------------------------------------------------------------------------------------
EQ/Alliance Small Cap Growth (21.13)% -- -- 3.97%
- -------------------------------------------------------------------------------------------------------------
EQ/Alliance Technology (32.22)% -- -- (32.81)%
- -------------------------------------------------------------------------------------------------------------
EQ/AXP New Dimensions (23.38)% -- -- (28.96)%
- -------------------------------------------------------------------------------------------------------------
EQ/AXP Strategy Aggressive (41.15)% -- -- (54.52)%
- -------------------------------------------------------------------------------------------------------------
EQ/Balanced (10.11)% 6.02% 4.37% 7.38%
- -------------------------------------------------------------------------------------------------------------
EQ/Bernstein Diversified Value (4.96)% -- -- (4.56)%
- -------------------------------------------------------------------------------------------------------------
EQ/Calvert Socially Responsible -- -- -- 0.12%
- -------------------------------------------------------------------------------------------------------------
EQ/Capital Guardian International (28.70)% -- -- (3.06)%
- -------------------------------------------------------------------------------------------------------------
EQ/Capital Guardian Research (10.02)% -- -- 0.65%
- -------------------------------------------------------------------------------------------------------------
EQ/Capital Guardian U.S. Equity (10.01)% -- -- (2.30)%
- -------------------------------------------------------------------------------------------------------------
EQ/Emerging Markets Equity (13.13)% -- -- (14.05)%
- -------------------------------------------------------------------------------------------------------------
EQ/Equity 500 Index (20.06)% 7.27% -- 11.83%
- -------------------------------------------------------------------------------------------------------------
EQ/Evergreen Omega (24.86)% -- -- (14.84)%
- -------------------------------------------------------------------------------------------------------------
EQ/FI Mid Cap (21.30)% -- -- (15.58)%
- -------------------------------------------------------------------------------------------------------------
EQ/FI Small/Mid Cap Value (4.07)% -- -- (1.21)%
- -------------------------------------------------------------------------------------------------------------
EQ/High Yield (7.34)% (3.79)% -- 1.58%
- -------------------------------------------------------------------------------------------------------------
EQ/Janus Large Cap Growth (30.75)% -- -- (33.45)%
- -------------------------------------------------------------------------------------------------------------
EQ/Lazard Small Cap Value 9.53% -- -- (3.38)%
- -------------------------------------------------------------------------------------------------------------
EQ/Mercury Basic Value Equity (2.55)% -- -- 9.34%
- -------------------------------------------------------------------------------------------------------------
EQ/MFS Emerging Growth Companies (41.73)% -- -- 4.99%
- -------------------------------------------------------------------------------------------------------------
EQ/MFS Investors Trust (23.84)% -- -- (9.84)%
- -------------------------------------------------------------------------------------------------------------
EQ/MFS Research (29.62)% -- -- 1.55%
- -------------------------------------------------------------------------------------------------------------
EQ/Putnam Growth & Income Value (14.76)% -- -- 1.13%
- -------------------------------------------------------------------------------------------------------------
EQ/Putnam International Equity (29.33)% -- -- (2.88)%
- -------------------------------------------------------------------------------------------------------------
EQ/Putnam Voyager (32.23)% -- -- (2.99)%
- -------------------------------------------------------------------------------------------------------------
- -------------------------------------------------------------------------------------------------------------
LENGTH OF PORTFOLIO PERIOD
-------------------------------------------------------------
SINCE
PORTFOLIO
VARIABLE INVESTMENT OPTIONS 3 YEARS 5 YEARS 10 YEARS INCEPTION+**
- -------------------------------------------------------------------------------------------------------------
EQ/Aggressive Stock (12.68)% (6.69)% 1.18% 8.56%
- -------------------------------------------------------------------------------------------------------------
EQ/Alliance Common Stock (5.36)% 7.03% 10.20% 9.47%
- -------------------------------------------------------------------------------------------------------------
EQ/Alliance Global (7.65)% 0.92% 6.00% 6.03%
- -------------------------------------------------------------------------------------------------------------
EQ/Alliance Growth and Income 4.74% 11.39% -- 10.73%
- -------------------------------------------------------------------------------------------------------------
EQ/Alliance Growth Investors (2.87)% 4.45% 6.28% 9.62%
- -------------------------------------------------------------------------------------------------------------
EQ/Alliance Intermediate Government Securities 1.92% 2.99% 2.66% 3.42%
- -------------------------------------------------------------------------------------------------------------
EQ/Alliance International (10.95)% (6.31)% -- (2.39)%
- -------------------------------------------------------------------------------------------------------------
EQ/Alliance Money Market 1.17% 1.68% 1.25% 3.81%
- -------------------------------------------------------------------------------------------------------------
EQ/Alliance Premier Growth -- -- -- (15.42)%
- -------------------------------------------------------------------------------------------------------------
EQ/Alliance Quality Bond 1.96% 3.60% -- 2.54%
- -------------------------------------------------------------------------------------------------------------
EQ/Alliance Small Cap Growth 4.50% -- -- 6.41%
- -------------------------------------------------------------------------------------------------------------
EQ/Alliance Technology -- -- -- (29.99)%
- -------------------------------------------------------------------------------------------------------------
EQ/AXP New Dimensions -- -- -- (28.96)%
- -------------------------------------------------------------------------------------------------------------
EQ/AXP Strategy Aggressive -- -- -- (54.52)%
- -------------------------------------------------------------------------------------------------------------
EQ/Balanced 0.62% 6.02% 4.37% 7.38%
- -------------------------------------------------------------------------------------------------------------
EQ/Bernstein Diversified Value (2.20)% -- -- 2.66%
- -------------------------------------------------------------------------------------------------------------
EQ/Calvert Socially Responsible -- -- -- (9.35)%
- -------------------------------------------------------------------------------------------------------------
EQ/Capital Guardian International -- -- -- (8.10)%
- -------------------------------------------------------------------------------------------------------------
EQ/Capital Guardian Research -- -- -- 0.08%
- -------------------------------------------------------------------------------------------------------------
EQ/Capital Guardian U.S. Equity -- -- -- (2.08)%
- -------------------------------------------------------------------------------------------------------------
EQ/Emerging Markets Equity 0.00% -- -- (14.05)%
- -------------------------------------------------------------------------------------------------------------
EQ/Equity 500 Index (5.53)% 7.27% -- 11.28%
- -------------------------------------------------------------------------------------------------------------
EQ/Evergreen Omega -- -- -- --
- -------------------------------------------------------------------------------------------------------------
EQ/FI Mid Cap -- -- -- (15.58)%
- -------------------------------------------------------------------------------------------------------------
EQ/FI Small/Mid Cap Value 0.01% -- -- 0.36%
- -------------------------------------------------------------------------------------------------------------
EQ/High Yield (8.02)% (3.79)% 4.26% 4.57%
- -------------------------------------------------------------------------------------------------------------
EQ/Janus Large Cap Growth -- -- -- (33.45)%
- -------------------------------------------------------------------------------------------------------------
EQ/Lazard Small Cap Value 9.07% -- -- 3.99%
- -------------------------------------------------------------------------------------------------------------
EQ/Mercury Basic Value Equity 8.63% -- -- 10.95%
- -------------------------------------------------------------------------------------------------------------
EQ/MFS Emerging Growth Companies (6.32)% -- -- 6.93%
- -------------------------------------------------------------------------------------------------------------
EQ/MFS Investors Trust -- -- -- --
- -------------------------------------------------------------------------------------------------------------
EQ/MFS Research (6.98)% -- -- 3.03%
- -------------------------------------------------------------------------------------------------------------
EQ/Putnam Growth & Income Value (4.44)% -- -- 2.31%
- -------------------------------------------------------------------------------------------------------------
EQ/Putnam International Equity (0.33)% -- -- 5.19%
- -------------------------------------------------------------------------------------------------------------
EQ/Putnam Voyager (10.99)% -- -- 3.92%
- -------------------------------------------------------------------------------------------------------------
+ Unannualized if time since inception is less than one year
* The variable investment option inception dates are: EQ/Aggressive Stock and
EQ/Balanced (1/27/86); EQ/Alliance Money Market (7/31/81); EQ/Alliance
Common Stock (8/27/81); EQ/Equity 500 Index (6/1/94); EQ/Alliance Global,
EQ/Alliance Growth and Income, EQ/Alliance Growth Investors, EQ/Alliance
Quality Bond and EQ/High Yield (1/4/94); EQ/Alliance Intermediate Government
Securities (6/1/94); EQ/Alliance International (9/1/95); EQ/Alliance Small
Cap Growth, EQ/MFS Emerging Growth Companies, EQ/MFS Research, EQ/Mercury
Basic Value Equity, EQ/Putnam Growth & Income Value, EQ/FI Small/Mid Cap
Value (6/2/97); EQ/Emerging Markets Equity (8/20/97); EQ/Evergreen Omega,
EQ/MFS Investors Trust, EQ/Alliance Premier Growth, EQ/Capital Guardian U.S.
Equity, EQ/Capital Guardian International, EQ/Capital Guardian Research,
EQ/Bernstein Diversified Value, EQ/Lazard Small Cap Value, EQ/Putnam
International Equity, EQ/Putnam Voyager (8/30/99); EQ/Calvert
Socially Responsible (9/1/99); EQ/Alliance Technology (5/22/00); EQ/Janus
Large Cap Growth, EQ/FI Mid Cap, EQ/AXP New Dimensions and EQ/AXP Strategy
Aggressive (9/1/00); EQ/Marsico Focus (10/22/01); AXA Premier VIP Large Cap
Growth, AXA Premier VIP Large Cap Core Equity, AXA Premier VIP Large Cap
Value, AXA Premier VIP Small/Mid Cap Growth, AXA Premier VIP Small/Mid Cap
Value, AXA Premier VIP International Equity, AXA Premier VIP Technology, AXA
Premier VIP Health Care, AXA Premier VIP Core Bond, EQ/International Equity
Index, EQ/J.P. Morgan Core Bond and EQ/Small Company Index (January 14,
2002). No performance information is provided for portfolios and/or variable
investment options with inception dates after December 31, 2000.
** The inception dates for the portfolios underlying the Alliance variable
investment options shown in the tables are for portfolios of The Hudson
River Trust, the assets of which became assets of corresponding portfolios
of EQ Advisors Trust on 10/18/99. The portfolio inception dates are:
EQ/Aggressive Stock and EQ/Balanced (1/27/86); EQ/Alliance Common Stock
(1/13/76); EQ/Equity 500 Index (3/1/94); EQ/Alliance Global (8/27/87);
EQ/Alliance Growth and Income (10/1/93); EQ/Alliance Growth Investors
(10/2/89); EQ/High Yield (1/2/87);
18
EQ/Alliance International (4/3/95); EQ/Alliance Money Market (7/13/81);
EQ/Alliance Intermediate Government Securities (4/1/91); EQ/Alliance Quality
Bond (10/1/93); EQ/Alliance Small Cap Growth, EQ/MFS Research, EQ/Mercury
Basic Value Equity, EQ/Putnam Growth & Income Value, EQ/FI Small/Mid Cap
Value, EQ/Putnam International Equity and EQ/Putnam Voyager (5/1/97);
EQ/Emerging Markets Equity (8/20/97); EQ/Evergreen Omega and EQ/MFS
Investors Trust (1/1/99); EQ/Bernstein Diversified Value, EQ/International
Equity Index, EQ/J.P. Morgan Core Bond, EQ/Lazard Small Cap Value and
EQ/Small Company Index (1/1/98); EQ/MFS Emerging Growth Companies (5/1/97);
EQ/Alliance Premier Growth, EQ/Capital Guardian International, EQ/Capital
Guardian Research and EQ/Capital Guardian U.S. Equity (5/1/99); EQ/Calvert
Socially Responsible (9/1/ 99); EQ/Alliance Technology (5/1/00); EQ/Janus
Large Cap Growth, EQ/FI Mid Cap, EQ/AXP New Dimensions and EQ/AXP Strategy
Aggressive (9/1/00); EQ/Marsico Focus (August 31, 2001); AXA Premier VIP
Large Cap Growth, AXA Premier VIP Large Cap Core Equity, AXA Premier VIP
Large Cap Value, AXA Premier VIP Small/Mid Cap Growth, AXA Premier VIP
Small/Mid Cap Value, AXA Premier VIP International Equity, AXA Premier VIP
Healthcare, AXA Premier VIP Core Bond and AXA Premier VIP Technology
(December 31, 2001). No performance information is provided for portfolios
and/or variable investment options with inception dates after December 31,
2000.
19
TABLE
AVERAGE ANNUAL TOTAL RETURN UNDER A CONTRACT SURRENDERED ON DECEMBER 31, 2001
EQUI-VEST(R):
- -------------------------------------------------------------------------------------------------------------
LENGTH OF OPTION PERIOD
-------------------------------------------------------------
SINCE OPTION
VARIABLE INVESTMENT OPTIONS 1 YEAR 5 YEARS 10 YEARS INCEPTION+*
- -------------------------------------------------------------------------------------------------------------
EQ/Aggressive Stock (29.90)% (7.14)% 0.89% 8.27%
- -------------------------------------------------------------------------------------------------------------
EQ/Alliance Common Stock (16.38)% 6.29% 9.92% 12.18%
- -------------------------------------------------------------------------------------------------------------
EQ/Alliance Global (25.30)% 0.19% -- 4.19%
- -------------------------------------------------------------------------------------------------------------
EQ/Alliance Growth and Income (7.76)% 10.74% -- 11.34%
- -------------------------------------------------------------------------------------------------------------
EQ/Alliance Growth Investors (18.14)% 3.66% -- 5.99%
- -------------------------------------------------------------------------------------------------------------
EQ/Alliance Intermediate Government Securities 1.08% 2.16% -- 2.64%
- -------------------------------------------------------------------------------------------------------------
EQ/Alliance International (28.14)% (6.77)% -- (3.53)%
- -------------------------------------------------------------------------------------------------------------
EQ/Alliance Money Market (2.97)% 0.89% 0.96% 3.50%
- -------------------------------------------------------------------------------------------------------------
EQ/Alliance Premier Growth (28.76)% -- -- (17.17)%
- -------------------------------------------------------------------------------------------------------------
EQ/Alliance Quality Bond 1.20% 2.78% -- 2.90%
- -------------------------------------------------------------------------------------------------------------
EQ/Alliance Small Cap Growth (18.71)% -- -- 3.10%
- -------------------------------------------------------------------------------------------------------------
EQ/Alliance Technology (29.21)% -- -- (30.63)%
- -------------------------------------------------------------------------------------------------------------
EQ/AXP New Dimensions (20.85)% -- -- (27.09)%
- -------------------------------------------------------------------------------------------------------------
EQ/AXP Strategy Aggressive (37.67)% -- -- (50.88)%
- -------------------------------------------------------------------------------------------------------------
EQ/Balanced (8.28)% 5.25% 4.08% 7.08%
- -------------------------------------------------------------------------------------------------------------
EQ/Bernstein Diversified Value (3.41)% -- -- (4.73)%
- -------------------------------------------------------------------------------------------------------------
EQ/Calvert Socially Responsible -- -- -- 1.60%
- -------------------------------------------------------------------------------------------------------------
EQ/Capital Guardian International (25.88)% -- -- (3.06)%
- -------------------------------------------------------------------------------------------------------------
EQ/Capital Guardian Research (8.20)% -- -- 0.21%
- -------------------------------------------------------------------------------------------------------------
EQ/Capital Guardian U.S. Equity (8.19)% -- -- (2.59)%
- -------------------------------------------------------------------------------------------------------------
EQ/Emerging Markets Equity (11.14)% -- -- (14.21)%
- -------------------------------------------------------------------------------------------------------------
EQ/Equity 500 Index (17.71)% 6.54% -- 11.54%
- -------------------------------------------------------------------------------------------------------------
EQ/Evergreen Omega (22.25)% -- -- (14.41)%
- -------------------------------------------------------------------------------------------------------------
EQ/FI Mid Cap (18.88)% -- -- (14.51)%
- -------------------------------------------------------------------------------------------------------------
EQ/FI Small/Mid Cap Value (2.57)% -- -- (1.93)%
- -------------------------------------------------------------------------------------------------------------
EQ/High Yield (5.66)% (4.36)% -- 1.30%
- -------------------------------------------------------------------------------------------------------------
EQ/Janus Large Cap Growth (27.82)% -- -- (31.30)%
- -------------------------------------------------------------------------------------------------------------
EQ/Lazard Small Cap Value 10.31% -- -- (3.36)%
- -------------------------------------------------------------------------------------------------------------
EQ/Mercury Basic Value Equity (1.13)% -- -- 8.56%
- -------------------------------------------------------------------------------------------------------------
EQ/MFS Emerging Growth Companies (38.21)% -- -- 4.15%
- -------------------------------------------------------------------------------------------------------------
EQ/MFS Investors Trust (21.28)% -- -- (9.71)%
- -------------------------------------------------------------------------------------------------------------
EQ/MFS Research (26.75)% -- -- 0.74%
- -------------------------------------------------------------------------------------------------------------
EQ/Putnam Growth & Income Value (12.69)% -- -- 0.32%
- -------------------------------------------------------------------------------------------------------------
EQ/Putnam International Equity (26.48)% -- -- (2.89)%
- -------------------------------------------------------------------------------------------------------------
EQ/Putnam Voyager (29.23)% -- -- (2.99)%
- -------------------------------------------------------------------------------------------------------------
- -------------------------------------------------------------------------------------------------------------
LENGTH OF PORTFOLIO PERIOD
-------------------------------------------------------------
SINCE
PORTFOLIO
VARIABLE INVESTMENT OPTIONS 3 YEARS 5 YEARS 10 YEARS INCEPTION+**
- -------------------------------------------------------------------------------------------------------------
EQ/Aggressive Stock (12.32)% (7.14)% 0.89% 8.27%
- -------------------------------------------------------------------------------------------------------------
EQ/Alliance Common Stock (5.45)% 6.29% 9.92% 9.13%
- -------------------------------------------------------------------------------------------------------------
EQ/Alliance Global (7.62)% 0.19% 5.72% 5.74%
- -------------------------------------------------------------------------------------------------------------
EQ/Alliance Growth and Income 4.15% 10.74% -- 10.46%
- -------------------------------------------------------------------------------------------------------------
EQ/Alliance Growth Investors (3.10)% 3.66% 5.99% 9.33%
- -------------------------------------------------------------------------------------------------------------
EQ/Alliance Intermediate Government Securities 1.45% 2.16% 2.37% 3.12%
- -------------------------------------------------------------------------------------------------------------
EQ/Alliance International (10.71)% (6.77)% -- (2.48)%
- -------------------------------------------------------------------------------------------------------------
EQ/Alliance Money Market 0.74% 0.89% 0.96% 3.50%
- -------------------------------------------------------------------------------------------------------------
EQ/Alliance Premier Growth -- -- -- (14.92)%
- -------------------------------------------------------------------------------------------------------------
EQ/Alliance Quality Bond 1.49% 2.78% -- 2.25%
- -------------------------------------------------------------------------------------------------------------
EQ/Alliance Small Cap Growth 3.91% -- -- 5.60%
- -------------------------------------------------------------------------------------------------------------
EQ/Alliance Technology -- -- -- (28.01)%
- -------------------------------------------------------------------------------------------------------------
EQ/AXP New Dimensions -- -- -- (27.09)%
- -------------------------------------------------------------------------------------------------------------
EQ/AXP Strategy Aggressive -- -- -- (50.88)%
- -------------------------------------------------------------------------------------------------------------
EQ/Balanced 0.21% 5.25% 4.08% 7.08%
- -------------------------------------------------------------------------------------------------------------
EQ/Bernstein Diversified Value (2.46)% -- -- 1.74%
- -------------------------------------------------------------------------------------------------------------
EQ/Calvert Socially Responsible -- -- -- (9.25)%
- -------------------------------------------------------------------------------------------------------------
EQ/Capital Guardian International -- -- -- (8.05)%
- -------------------------------------------------------------------------------------------------------------
EQ/Capital Guardian Research -- -- -- (0.31)%
- -------------------------------------------------------------------------------------------------------------
EQ/Capital Guardian U.S. Equity -- -- -- (2.37)%
- -------------------------------------------------------------------------------------------------------------
EQ/Emerging Markets Equity (0.38)% -- -- (14.21)%
- -------------------------------------------------------------------------------------------------------------
EQ/Equity 500 Index (5.61)% 6.54% -- 10.99%
- -------------------------------------------------------------------------------------------------------------
EQ/Evergreen Omega -- -- -- (10.94)%
- -------------------------------------------------------------------------------------------------------------
EQ/FI Mid Cap -- -- -- (14.51)%
- -------------------------------------------------------------------------------------------------------------
EQ/FI Small/Mid Cap Value (0.37)% -- -- (0.41)%
- -------------------------------------------------------------------------------------------------------------
EQ/High Yield (7.95)% (4.36)% 3.98% 4.28%
- -------------------------------------------------------------------------------------------------------------
EQ/Janus Large Cap Growth -- -- -- (31.30)%
- -------------------------------------------------------------------------------------------------------------
EQ/Lazard Small Cap Value 8.50% -- -- 3.03%
- -------------------------------------------------------------------------------------------------------------
EQ/Mercury Basic Value Equity 8.05% -- -- 10.20%
- -------------------------------------------------------------------------------------------------------------
EQ/MFS Emerging Growth Companies (6.36)% -- -- 6.13%
- -------------------------------------------------------------------------------------------------------------
EQ/MFS Investors Trust -- -- -- (7.14)%
- -------------------------------------------------------------------------------------------------------------
EQ/MFS Research (6.98)% -- -- 2.17%
- -------------------------------------------------------------------------------------------------------------
EQ/Putnam Growth & Income Value (4.59)% -- -- 1.47%
- -------------------------------------------------------------------------------------------------------------
EQ/Putnam International Equity (0.69)% -- -- 4.36%
- -------------------------------------------------------------------------------------------------------------
EQ/Putnam Voyager (10.75)% -- -- 3.07%
- -------------------------------------------------------------------------------------------------------------
+ Unannualized if time since inception is less than one year
* The variable investment option inception dates are: EQ/Aggressive Stock and
EQ/Balanced (1/27/86); EQ/Alliance Money Market (7/31/81); EQ/Alliance
Common Stock (8/27/81); EQ/Equity 500 Index (6/1/94); EQ/Alliance Global,
EQ/Alliance Growth and Income, EQ/Alliance Growth Investors, EQ/Alliance
Quality Bond and EQ/High Yield (1/4/94); EQ/Alliance Intermediate Government
Securities (6/1/94); EQ/Alliance International (9/1/95); EQ/Alliance Small
Cap Growth, EQ/MFS Emerging Growth Companies, EQ/MFS Research, EQ/Mercury
Basic Value Equity, EQ/Putnam Growth & Income Value, EQ/FI Small/Mid Cap
Value (6/2/97); EQ/Emerging Markets Equity (8/20/97); EQ/Evergreen Omega,
EQ/MFS Investors Trust, EQ/Alliance Premier Growth, EQ/Capital Guardian U.S.
Equity, EQ/Capital Guardian International, EQ/Capital Guardian Research,
EQ/Bernstein Diversified Value, EQ/Lazard Small Cap Value, EQ/Putnam
International Equity, EQ/Putnam Voyager (8/30/99); EQ/Calvert
Socially Responsible (9/1/99); EQ/Alliance Technology (5/22/00); EQ/Janus
Large Cap Growth, EQ/FI Mid Cap, EQ/AXP New Dimensions and EQ/AXP Strategy
Aggressive (9/1/00); EQ/Marsico Focus (10/22/01); AXA Premier VIP Large Cap
Growth, AXA Premier VIP Large Cap Core Equity, AXA Premier VIP Large Cap
Value, AXA Premier VIP Small/Mid Cap Growth, AXA Premier VIP Small/Mid Cap
Value, AXA Premier VIP International Equity, AXA Premier VIP Technology, AXA
Premier VIP Health Care, AXA Premier VIP Core Bond, EQ/International Equity
Index, EQ/J.P. Morgan Core Bond and EQ/Small Company Index (January 14,
2002). No performance information is provided for portfolios and/or variable
investment options with inception dates after December 31, 2000.
** The inception dates for the portfolios underlying the Alliance variable
investment options shown in the tables are for portfolios of The Hudson
River Trust, the assets of which became assets of corresponding portfolios
of EQ Advisors Trust on 10/18/99. The portfolio inception dates are:
EQ/Aggressive Stock and EQ/Balanced (1/27/86); EQ/Alliance Common Stock
(1/13/76); EQ/Equity 500 Index (3/1/94); EQ/Alliance Global (8/27/87);
EQ/Alliance Growth and Income (10/1/93); EQ/Alliance Growth Investors
(10/2/89); EQ/ High Yield (1/2/87);
20
EQ/Alliance International (4/3/95); EQ/Alliance Money Market (7/13/81);
EQ/Alliance Intermediate Government Securities (4/1/91); EQ/Alliance Quality
Bond (10/1/93); EQ/Alliance Small Cap Growth, EQ/MFS Research, EQ/Mercury
Basic Value Equity, EQ/Putnam Growth & Income Value, EQ/FI Small/Mid Cap
Value, EQ/Putnam International Equity and EQ/Putnam Voyager (5/1/97);
EQ/Emerging Markets Equity (8/20/97); EQ/Evergreen Omega and EQ/MFS
Investors Trust (1/1/99); EQ/Bernstein Diversified Value, EQ/International
Equity Index, EQ/J.P. Morgan Core Bond, EQ/Lazard Small Cap Value and
EQ/Small Company Index (1/1/98); EQ/MFS Emerging Growth Companies (5/1/97);
EQ/Alliance Premier Growth, EQ/Capital Guardian International, EQ/Capital
Guardian Research and EQ/Capital Guardian U.S. Equity (5/1/99); EQ/Calvert
Socially Responsible (9/1/ 99); EQ/Alliance Technology (5/1/00); EQ/Janus
Large Cap Growth, EQ/FI Mid Cap, EQ/AXP New Dimensions and EQ/AXP Strategy
Aggressive (9/1/00); EQ/Marsico Focus (August 31, 2001); AXA Premier VIP
Large Cap Growth, AXA Premier VIP Large Cap Core Equity, AXA Premier VIP
Large Cap Value, AXA Premier VIP Small/Mid Cap Growth, AXA Premier VIP
Small/Mid Cap Value, AXA Premier VIP International Equity, AXA Premier VIP
Healthcare, AXA Premier VIP Core Bond and AXA Premier VIP Technology
(December 31, 2001). No performance information is provided for portfolios
and/or variable investment options with inception dates after December 31,
2000.
(15) CLARIFICATION OF VARIABLE IMMEDIATE ANNUITY PAYOUT OPTIONS
VARIABLE IMMEDIATE ANNUITY PAYOUT OPTIONS
Variable Immediate Annuities are available and offered through a separate
prospectus that is available from your financial professional. Before you select
a Variable Immediate Annuity payout option, you should read the prospectus which
contains important information that you should know.
Variable annuities may be funded through your choice of variable investment
options investing in portfolios of EQ Advisors Trust. The contract also offers a
fixed annuity option that can be elected in combination with the variable
annuity payout options. The amount of each variable annuity payment will
fluctuate, depending upon the performance of the variable investment options,
and whether the actual rate of investment return is higher or lower than an
assumed base rate. As stated in your prospectus, we deduct a fee of up to $350
from the amount to be applied to purchase a Variable Immediate Annuity payout
option.
21
Appendix
- --------------------------------------------------------------------------------
DATES OF PREVIOUS PROSPECTUSES AND SUPPLEMENTS:
- --------------------------------------------------------------------------------------------------------
PRODUCT NAME PROSPECTUS DATES SUPPLEMENT DATES
o EQUI-VEST(R) Express(SM) 5/1/00; 5/1/01 6/23/00; 9/1/00; 1/5/01; 2/9/01; 8/3/01; 9/1/01; 1/14/02
o EQUI-VEST(R) 5/1/00; 5/1/01 6/23/00; 9/1/00; 1/5/01; 2/9/01; 8/3/01; 9/1/01; 1/14/02
- --------------------------------------------------------------------------------------------------------
Statement of additional information
- --------------------------------------------------------------------------------
TABLE OF CONTENTS
PAGE
Unit Values 2
Calculation of Annuity Payments 2
The reorganization 3
Custodian and independent accountants 3
EQ/Alliance Money Market option yield information 3
Other yield information 4
Distribution of the contracts 5
Financial statements 5
HOW TO OBTAIN AN EQUI-VEST(R) STATEMENT OF ADDITIONAL INFORMATION FOR SEPARATE
ACCOUNT A
Call 1-800-628-6673 or send this request form to:
EQUI-VEST(R)
Processing Office
The Equitable Life
P.O. Box 2996
New York, NY 10116-2996
- --------------------------------------------------------------------------------
Please send me an EQUI-VEST(R) Statement of Additional Information dated May 1,
2002.
Check one:
EQUI-VEST(R) Express(SM) | |
EQUI-VEST(R) combination variable and fixed deferred annuity | |
- --------------------------------------------------------------------------------
Name:
- --------------------------------------------------------------------------------
Address:
- --------------------------------------------------------------------------------
City State Zip
888-1297 (5/02)
EQUI-VEST(R)
Employer-Sponsored Retirement Programs
TSA ADVANTAGE(SM)
SUPPLEMENT DATED MAY 1, 2002
TO THE PROSPECTUS DATED MAY 1, 2002
- --------------------------------------------------------------------------------
This supplement adds and modifies certain information contained in the
prospectus dated May 1, 2002 for the EQUI-VEST(R) deferred variable annuity
contract issued by The Equitable Life Assurance Society of the United States.
We offer the series 600 TSA Advantage(SM) contract to fund all Section 403(b)
plans sponsored by Section 501(c)(3) tax-exempt organizations, except those
plans sponsored by primary or secondary schools. It is also available to
post-secondary public educational institutions described in Section
403(b)(1)(A)(ii) of the Internal Revenue Code with more than 500 employees
eligible to participate. For plans sponsored by a hospital or other health care
organization qualified or intended to qualify under Section 501(c)(3) of the
Internal Revenue Code, the TSA Advantage(SM) contract will be available only
when the employer makes contributions to the 403(b) plan (whether on a matching
or non-elective contribution basis) or makes a contribution to a plan qualified
under 401(a) of the Internal Revenue Code, matching employee elective deferrals
in the 403(b) plan. Under the TSA Advantage(SM) contract, contributions
including rollover contributions and direct transfer contributions from existing
Section 403(b) plans (programs or arrangements), may be accepted only if the
contributions are fully vested under the existing TSA plan. The TSA
Advantage(SM) contract may not currently be available in your state. Your
financial professional can provide information about state availability.
Currently, no new units will be permitted to enroll in the TSA Advantage (Series
600) product. New participants, however, can be enrolled into existing TSA
Advantage units.
For Section 403(b) plans offered for hospital and health care facility
employees, non-salary reduction (employer contributions) must be made. TSA
Advantage(SM) is available only to employees of employers that currently have,
or within the first contract year are expected to have, at least 50
participants. Employees in Section 403(b) plans that do not meet these
requirements are only eligible for TSA series 100 and 200 contracts. Subject to
a written agreement between Equitable Life and an employer sponsoring a 403(b)
plan that uses an EQUI-VEST(R) TSA Advantage(SM) contract as a funding vehicle
for plan assets, Equitable Life may reimburse that employer for certain expenses
associated with that employer's plan, for example recordkeeping or other
administrative services. Any such reimbursement will not exceed ten dollars for
each EQUI-VEST(R) TSA Advantage(SM) contract issued to a participant of that
employer's 403(b) plan.
- --------------------------------------------------------------------------------
A participant is an individual who participates in an employer's plan funded by
an EQUI-VEST(R) contract. The participant is also the annuitant who is the
measuring life for determining annuity benefits.
- --------------------------------------------------------------------------------
We may at some future time, under certain circumstances and subject to
applicable law, allow a current owner of a series 100 or series 200 TSA contract
to exchange it for a TSA Advantage(SM) contract. An exchange for a TSA
Advantage(SM) contract may or may not be advantageous to you, based on all the
circumstances, including a comparison of contractual terms and conditions and
charges and deductions. We will provide additional information upon request at
such time as exchanges may be permitted.
------------------------------
See "Tax information" in the Prospectus for a more detailed discussion of
sources of contributions, certain contribution limitations and other tax
information for TSA contracts.
We offer the EQUI-VEST(R) TSA Advantage(SM) contract to purchasers on the same
basis and under the same terms and conditions described in the Prospectus as
those that apply to the EQUI-VEST(R) series 100 and 200 TSA contracts, except
for certain material differences. Terms we use in this supplement have the same
meaning as in the prospectus, unless we indicate otherwise.
Material differences between TSA Advantage(SM) and the provisions of the
EQUI-VEST(R) TSA series 100 and 200 contracts described in the Prospectus
include the information, above as well as the following:
Because you are purchasing an annuity contract as a Tax Sheltered Annuity (TSA),
you should be aware that such annuities do not provide tax deferral benefits
beyond those already provided by the Internal Revenue Code. Before purchasing
one of these annuities, you should consider whether its features and benefits
beyond tax deferral meet your needs and goals. You may also want to consider the
relative features, benefits and costs of these annuities with any other
investment that you may use in connection with your retirement plan or
arrangement. (For more information, see "Tax Information," in the Prospectus).
- --------------------------------------------------------------------------------
THE FOLLOWING IS ADDED TO "EQUI-VEST(R) EMPLOYER-SPONSORED RETIREMENT PROGRAMS
AT A GLANCE -- KEY FEATURES" IN "FEES AND CHARGES" IN THE PROSPECTUS:
- --------------------------------------------------------------------------------
FEES AND CHARGES UNDER SERIES 600 o Daily charge on amounts invested in
variable investment options for mortality
and expense risks and other expenses at a
current annual rate of 1.20% currently (2%
maximum).
o Annual administrative charge: $30
currently or 2% of the account value, if
less ($65 maximum).
o Charge for third-party transfer (such as
in the case of a direct rollover to a
traditional IRA contract) or exchange (if
your contract is exchanged for a 403(b)(1)
contract issued by another insurance
company): none currently ($65 maximum).
o No sales charge deducted at the time you
make contributions.
o Withdrawal charge: We deduct a charge
equal to 6% of the amount withdrawn or the
defaulted loan amount in the first six
contract years. The total of all
withdrawal charges may not exceed 8% of
all contributions made in the first six
contract years. Under certain
circumstances, the withdrawal charge will
not apply. They are discussed in "Charges
and expenses" later in this supplement.
o We deduct a charge designed to approximate
certain taxes that may be imposed on us,
such as premium taxes in your state. The
charge is generally deducted from the
amount applied to an annuity payout
option.
o We deduct a $350 annuity administrative
fee from amounts applied to a variable
annuity payout option.
o Annual expenses of the Trusts' portfolios
are calculated as a percentage of the
average daily net assets invested in each
portfolio. These expenses include
management fees ranging from 0.25% to
1.20% annually, 12b-1 fees of 0.25%
annually, and other expenses.
- --------------------------------------------------------------------------------
2
Fee table
- --------------------------------------------------------------------------------
The fee table below will help you understand the various charges and expenses
that apply to the series 600 TSA Advantage(SM) contract. The table reflects
charges you will directly incur under the contract, as well as charges and
expenses of the portfolios that you will bear indirectly. Charges designed to
approximate certain taxes that may be imposed on us, such as premium taxes in
your state, may also apply. Also, an annuity administrative fee may apply when
your annuity payments are to begin. Each of the charges and expenses is more
fully described in "Charges and expenses" later in this supplement.
The guaranteed interest option and fixed maturity options discussed in the
prospectus are not covered by the fee table and examples. However, the annual
administrative charge and the withdrawal charge do apply to the guaranteed
interest and the fixed maturity options. Also, an annuity administrative fee may
apply when your annuity payments are to begin. A market value adjustment (up or
down) may apply as a result of a withdrawal, transfer or surrender of amounts
from a fixed maturity option.
EQUI-VEST(R) SERIES 600 CONTRACTS
- --------------------------------------------------------------------------------
CHARGES WE DEDUCT FROM YOUR VARIABLE INVESTMENT OPTIONS EXPRESSED AS AN ANNUAL
PERCENTAGE OF DAILY NET ASSETS
- --------------------------------------------------------------------------------
Mortality and expense risk(1) 0.95%
Other expenses 0.25%
----
Total Separate Account A annual expenses 1.20% current (2.00% maximum)
- --------------------------------------------------------------------------------
Charges we deduct from your account value on each contract date anniversary
- --------------------------------------------------------------------------------
Annual administrative charge(2) $30 current or 2% of your
account value, if less
($65 maximum)
- --------------------------------------------------------------------------------
CHARGES WE DEDUCT FROM YOUR ACCOUNT VALUE AT THE TIME YOU REQUEST CERTAIN
TRANSACTIONS
- --------------------------------------------------------------------------------
Maximum withdrawal charge(3) 6%
- --------------------------------------------------------------------------------
CHARGE FOR THIRD-PARTY TRANSFER OR EXCHANGE(4) NONE CURRENTLY ($65 MAXIMUM
PER OCCURRENCE)
- --------------------------------------------------------------------------------
Fee table 3
THE TRUSTS ANNUAL EXPENSES
(AS A PERCENTAGE OF AVERAGE DAILY NET ASSETS IN EACH PORTFOLIO)
- -------------------------------------------------------------------------------------------------------------------
NET
TOTAL ANNUAL
MANAGEMENT FEES OTHER EXPENSES EXPENSES (AFTER
(AFTER EXPENSE (AFTER EXPENSE EXPENSE
PORTFOLIO NAME LIMITATION)(5) 12B-1 FEES(6) LIMITATION)(7) LIMITATION)(8)
- -------------------------------------------------------------------------------------------------------------------
AXA PREMIER VIP TRUST:
- -------------------------------------------------------------------------------------------------------------------
AXA Premier VIP Core Bond 0.00% 0.25% 0.70% 0.95%
AXA Premier VIP Health Care 0.44% 0.25% 1.16% 1.85%
AXA Premier VIP International Equity 0.62% 0.25% 0.93% 1.80%
AXA Premier VIP Large Cap Core Equity 0.17% 0.25% 0.93% 1.35%
AXA Premier VIP Large Cap Growth 0.31% 0.25% 0.79% 1.35%
AXA Premier VIP Large Cap Value 0.08% 0.25% 1.02% 1.35%
AXA Premier VIP Small/Mid Cap Growrth 0.42% 0.25% 0.93% 1.60%
AXA Premier VIP Small/Mid Cap Value 0.20% 0.25% 1.15% 1.60%
AXA Premier VIP Technology 0.58% 0.25% 1.02% 1.85%
- -------------------------------------------------------------------------------------------------------------------
EQ ADVISORS TRUST:
- -------------------------------------------------------------------------------------------------------------------
EQ/Aggressive Stock 0.61% 0.25% 0.08% 0.94%
EQ/Alliance Common Stock 0.46% 0.25% 0.07% 0.78%
EQ/Alliance Global 0.73% 0.25% 0.12% 1.10%
EQ/Alliance Growth and Income 0.57% 0.25% 0.06% 0.88%
EQ/Alliance Growth Investors 0.57% 0.25% 0.06% 0.88%
EQ/Alliance Intermediate Government Securities 0.50% 0.25% 0.12% 0.87%
EQ/Alliance International 0.85% 0.25% 0.25% 1.35%
EQ/Alliance Money Market 0.33% 0.25% 0.07% 0.65%
EQ/Alliance Premier Growth 0.84% 0.25% 0.06% 1.15%
EQ/Alliance Quality Bond 0.53% 0.25% 0.07% 0.85%
EQ/Alliance Small Cap Growth 0.75% 0.25% 0.06% 1.06%
EQ/Alliance Technology 0.82% 0.25% 0.08% 1.15%
EQ/AXP New Dimensions 0.00% 0.25% 0.70% 0.95%
EQ/AXP Strategy Aggressive 0.00% 0.25% 0.75% 1.00%
EQ/Balanced 0.57% 0.25% 0.08% 0.90%
EQ/Bernstein Diversified Value 0.61% 0.25% 0.09% 0.95%
EQ/Calvert Socially Responsible 0.00% 0.25% 0.80% 1.05%
EQ/Capital Guardian International 0.66% 0.25% 0.29% 1.20%
EQ/Capital Guardian Research 0.55% 0.25% 0.15% 0.95%
EQ/Capital Guardian US Equity 0.59% 0.25% 0.11% 0.95%
EQ/Emerging Markets Equity 0.87% 0.25% 0.68% 1.80%
EQ/Equity 500 Index 0.25% 0.25% 0.06% 0.56%
EQ/Evergreen Omega 0.00% 0.25% 0.70% 0.95%
EQ/FI Mid Cap 0.48% 0.25% 0.27% 1.00%
EQ/FI Small/Mid Cap Value 0.74% 0.25% 0.11% 1.10%
EQ/High Yield 0.60% 0.25% 0.07% 0.92%
EQ/International Equity Index 0.35% 0.25% 0.50% 1.10%
EQ/J.P. Morgan Core Bond 0.44% 0.25% 0.11% 0.80%
EQ/Janus Large Cap Growth 0.76% 0.25% 0.14% 1.15%
EQ/Lazard Small Cap Value 0.72% 0.25% 0.13% 1.10%
EQ/Marsico Focus 0.00% 0.25% 0.90% 1.15%
EQ/Mercury Basic Value Equity 0.60% 0.25% 0.10% 0.95%
EQ/MFS Emerging Growth Companies 0.63% 0.25% 0.09% 0.97%
EQ/MFS Investors Trust 0.58% 0.25% 0.12% 0.95%
EQ/MFS Research 0.63% 0.25% 0.07% 0.95%
EQ/Putnam Growth & Income Value 0.57% 0.25% 0.13% 0.95%
EQ/Putnam International Equity 0.71% 0.25% 0.29% 1.25%
EQ/Putnam Voyager 0.62% 0.25% 0.08% 0.95%
EQ/Small Company Index 0.25% 0.25% 0.35% 0.85%
- -------------------------------------------------------------------------------------------------------------------
Notes:
(1) A portion of this charge is for providing the death benefit.
(2) The charge is the lesser of $30 or 2% of account value. We reserve the right
to increase this charge to an annual maximum of $65.
(3) This charge applies to withdrawn contributions that are made in the first
six contract years, the current and five prior contract years. This charge
is deducted upon a withdrawal of amounts, or defaulted loan amounts, in
excess of the 10% free withdrawal amount. Important exceptions and
limitations may eliminate or reduce this charge.
4 Fee table
(4) We do not currently impose a third-party transfer or exchange charge.
However, we reserve the right to impose a charge in the future, but the
charge may not exceed a maximum of $65 for each occurrence.
(5) The management fees shown for each portfolio cannot be increased without a
vote of that portfolio's shareholders. See footnote (8) for any expense
limitation agreement information.
(6) Portfolio shares are all subject to fees imposed under distribution plans
(the "Rule 12b-1 Plan") adopted by each Trust pursuant to Rule 12b-1 under
the Investment Company Act of 1940. The 12b-1 fee will not be increased for
the life of the contracts.
(7) The amounts shown as "Other Expenses" will fluctuate from year to year
depending on actual expenses. Since initial seed capital was invested for
the EQ/Marsico Focus Portfolio on August 31, 2001, "Other Expenses" shown
have been annualized. Initial seed capital was invested for the Portfolios
of the AXA Premier VIP Trust on December 31, 2001, thus "Other Expenses"
shown are estimated. See footnote (8) for any expense limitation agreements
information.
(8) Equitable Life, the Trusts' manager, has entered into expense limitation
agreements with respect to certain Portfolios which are effective through
April 30, 2003. Under these agreements, Equitable Life has agreed to waive
or limit its fees and assume other expenses of each of these Portfolios, if
necessary, in an amount that limits each Portfolio's Total Annual Expenses
(exclusive of interest, taxes, brokerage commissions, capitalized
expenditures, and extraordinary expenses) to not more than the amounts
specified above as "Net Total Annual Expenses." Each Portfolio may at a
later date make a reimbursement to Equitable Life for any of the management
fees waived or limited and other expenses assumed and paid for by Equitable
Life pursuant to the expense limitation agreement provided that the
Portfolio's current annual operating expenses do not exceed the operating
expense limit determined for such portfolio. For more information see the
prospectus for EQ Advisors Trust. The following chart indicates other
expenses before any fee waivers and/or expense reimbursements that would
have applied to each Portfolio. Portfolios that are not listed below do not
have an expense limitation arrangement in effect or the expense limitation
agreement did not result in a fee waiver or reimbursement.
- --------------------------------------------------------------------------------
MANAGEMENT OTHER EXPENSES
FEES (BEFORE ANY (BEFORE ANY FEE
FEE WAIVERS WAIVERS AND/OR
AND/OR EXPENSE EXPENSE
PORTFOLIO NAME REIMBURSEMENTS) REIMBURSEMENTS)
- --------------------------------------------------------------------------------
AXA PREMIER VIP TRUST:
- --------------------------------------------------------------------------------
AXA Premier VIP Core Bond 0.60% 0.84%
AXA Premier VIP Health Care 1.20% 1.16%
AXA Premier VIP International
Equity 1.05% 0.93%
AXA Premier VIP Large Cap Core
Equity 0.90% 0.93%
AXA Premier VIP Large Cap
Growth 0.90% 0.79%
AXA Premier VIP Large Cap
Value 0.90% 1.02%
AXA Premier VIP Small/Mid Cap
Growth 1.10% 0.93%
AXA Premier VIP Small/Mid Cap
Value 1.10% 1.15%
AXA Premier VIP Technology 1.20% 1.02%
- --------------------------------------------------------------------------------
EQ ADVISORS TRUST:
- --------------------------------------------------------------------------------
EQ/Alliance Premier Growth 0.90% 0.06%
EQ/Alliance Technology 0.90% 0.08%
EQ/AXP New Dimensions 0.65% 1.06%
EQ/AXP Strategy Aggressive 0.70% 0.77%
EQ/Bernstein Diversified Value 0.65% 0.09%
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
MANAGEMENT OTHER EXPENSES
FEES (BEFORE ANY (BEFORE ANY FEE
FEE WAIVERS WAIVERS AND/OR
AND/OR EXPENSE EXPENSE
PORTFOLIO NAME REIMBURSEMENTS) REIMBURSEMENTS)
- --------------------------------------------------------------------------------
EQ/Calvert Socially Responsible 0.65% 1.46%
EQ/Capital Guardian
International 0.85% 0.29%
EQ/Capital Guardian Research 0.65% 0.15%
EQ/Capital Guardian US Equity 0.65% 0.11%
EQ/Emerging Markets Equity 1.15% 0.68%
EQ/Evergreen Omega 0.65% 0.99%
EQ/FI Mid Cap 0.70% 0.27%
EQ/FI Small/Mid Cap Value 0.75% 0.11%
EQ/International Equity Index 0.35% 0.50%
EQ/J.P. Morgan Core Bond 0.45% 0.11%
EQ/Janus Large Cap Growth 0.90% 0.14%
EQ/Lazard Small Cap Value 0.75% 0.13%
EQ/Marsico Focus 0.90% 2.44%
EQ/MFS Investors Trust 0.60% 0.12%
EQ/MFS Research 0.65% 0.07%
EQ/Putnam Growth & Income
Value 0.60% 0.13%
EQ/Putnam International Equity 0.85% 0.29%
EQ/Putnam Voyager 0.65% 0.08%
- --------------------------------------------------------------------------------
Fee table 5
EXAMPLES: EQUI-VEST SERIES 600 CONTRACTS
For the series 600 TSA Advantage contract, the examples show the expenses that a
hypothetical contract owner would pay in the situations illustrated. We assume a
single contribution of $1,000 is invested in one of the variable investment
options listed and a 5% annual return is earned on assets in that option.(1) The
annual administrative charge is based on charges that apply to a mix of
estimated contract sizes, resulting in an estimated administrative charge for
the purpose of these examples of $0.714 per $1,000. We also assume there is no
waiver of the withdrawal charge. Total Separate Account A expenses used to
compute the example below are the maximum expenses rather than the lower current
expenses. The series 600 contracts were first offered in July 1998.
These examples should not be considered a representation of past or future
expense for each option. Actual expenses may be greater or less than those
shown. The examples assume the continuation of Total Annual Expenses (after
expense limitation) shown for each portfolio of the Trusts in the table, above,
for the entire one, three, five and ten year periods included in the examples.
Similarly, the annual rate of return assumed in the examples is not an estimate
or guarantee of future investment performance.
- ----------------------------------------------------------------------------------------------------
IF YOU SURRENDER YOUR CONTRACT AT THE END
OF EACH PERIOD SHOWN, THE EXPENSES
WOULD BE:
---------------------------------------------------
1 YEAR 3 YEARS 5 YEARS 10 YEARS
- ----------------------------------------------------------------------------------------------------
AXA Premier VIP Core Bond $ 86.69 $ 153.88 $ 223.55 $ 344.44
AXA Premier VIP Health Care $ 95.62 $ 179.98 $ 265.84 $ 428.25
AXA Premier VIP International Equity $ 95.13 $ 178.54 $ 263.53 $ 423.79
AXA Premier VIP Large Cap Core Equity $ 90.66 $ 165.54 $ 242.55 $ 382.65
AXA Premier VIP Large Cap Growth $ 90.66 $ 165.54 $ 242.55 $ 382.65
AXA Premier VIP Large Cap Value $ 90.66 $ 165.54 $ 242.55 $ 382.65
AXA Premier VIP Small/Mid Cap Growth $ 93.14 $ 172.78 $ 254.26 $ 405.74
AXA Premier VIP Small/Mid Cap Value $ 93.14 $ 172.78 $ 254.26 $ 405.74
AXA Premier VIP Technology $ 95.62 $ 179.98 $ 265.84 $ 428.25
EQ/Aggressive Stock $ 86.59 $ 153.58 $ 223.07 $ 343.47
EQ/Alliance Common Stock $ 85.00 $ 148.89 $ 215.37 $ 327.72
EQ/Alliance Global $ 88.18 $ 158.26 $ 230.71 $ 358.96
EQ/Alliance Growth and Income $ 86.00 $ 151.83 $ 220.19 $ 337.60
EQ/Alliance Growth Investors $ 86.00 $ 151.83 $ 220.19 $ 337.60
EQ/Alliance Intermediate Government Securities $ 85.90 $ 151.53 $ 219.70 $ 336.61
EQ/Alliance International $ 90.66 $ 165.54 $ 242.55 $ 382.65
EQ/Alliance Money Market $ 83.71 $ 145.06 $ 209.07 $ 314.74
EQ/Alliance Premier Growth $ 88.68 $ 159.72 $ 233.09 $ 363.75
EQ/Alliance Quality Bond $ 85.70 $ 150.95 $ 218.74 $ 334.64
EQ/Alliance Small Cap Growth $ 87.78 $ 157.09 $ 228.80 $ 355.11
EQ/Alliance Technology $ 88.68 $ 159.72 $ 233.09 $ 363.75
EQ/AXP New Dimensions $ 86.69 $ 153.88 $ 223.55 $ 344.44
EQ/AXP Strategy Aggressive $ 87.19 $ 155.34 $ 225.94 $ 349.31
EQ/Balanced $ 86.19 $ 152.41 $ 221.15 $ 339.56
EQ/Bernstein Diversified Value $ 86.69 $ 153.88 $ 223.55 $ 344.44
EQ/Calvert Socially Responsible $ 87.68 $ 156.80 $ 228.33 $ 354.14
EQ/Capital Guardian International $ 89.17 $ 161.18 $ 235.46 $ 368.51
EQ/Capital Guardian Research $ 86.69 $ 153.88 $ 223.55 $ 344.44
EQ/Capital Guardian U.S. Equity $ 86.69 $ 153.88 $ 223.55 $ 344.44
EQ/Emerging Markets Equity $ 95.13 $ 178.54 $ 263.53 $ 423.79
EQ/Equity 500 Index $ 82.82 $ 142.41 $ 204.70 $ 305.65
EQ/Evergreen Omega $ 86.69 $ 153.88 $ 223.55 $ 344.44
EQ/FI Mid Cap $ 87.19 $ 155.34 $ 225.94 $ 349.31
EQ/FI Small/Mid Cap Value $ 88.18 $ 158.26 $ 230.71 $ 358.96
EQ/High Yield $ 86.39 $ 153.00 $ 222.11 $ 341.52
EQ/International Equity Index $ 88.18 $ 158.26 $ 230.71 $ 358.96
EQ/J.P. Morgan Core Bond $ 85.20 $ 149.48 $ 216.33 $ 329.71
EQ/Janus Large Cap Growth $ 88.68 $ 159.72 $ 233.09 $ 363.75
EQ/Lazard Small Cap Value $ 88.18 $ 158.26 $ 230.71 $ 358.96
EQ/Marsico Focus $ 88.68 $ 159.72 $ 233.09 $ 363.75
EQ/Mercury Basic Value Equity $ 86.69 $ 153.88 $ 223.55 $ 344.44
EQ/MFS Emerging Growth Companies $ 86.89 $ 154.46 $ 224.50 $ 346.39
EQ/MFS Investors Trust $ 86.69 $ 153.88 $ 223.55 $ 344.44
EQ/MFS Research $ 86.69 $ 153.88 $ 223.55 $ 344.44
EQ/Putnam Growth & Income Value $ 86.69 $ 153.88 $ 223.55 $ 344.44
EQ/Putnam International Equity $ 89.67 $ 162.63 $ 237.83 $ 373.25
EQ/Putnam Voyager $ 86.69 $ 153.88 $ 223.55 $ 344.44
- ----------------------------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------------
IF YOU DO NOT SURRENDER YOUR CONTRACT AT
THE END OF EACH PERIOD SHOWN, THE
EXPENSES WOULD BE:
---------------------------------------------------
1 YEAR 3 YEARS 5 YEARS 10 YEARS
- ----------------------------------------------------------------------------------------------------
AXA Premier VIP Core Bond $ 31.70 $ 96.86 $ 164.42 $ 344.44
AXA Premier VIP Health Care $ 41.15 $ 124.53 $ 209.40 $ 428.25
AXA Premier VIP International Equity $ 40.62 $ 123.01 $ 206.95 $ 423.79
AXA Premier VIP Large Cap Core Equity $ 35.90 $ 109.22 $ 184.63 $ 382.65
AXA Premier VIP Large Cap Growth $ 35.90 $ 109.22 $ 184.63 $ 382.65
AXA Premier VIP Large Cap Value $ 35.90 $ 109.22 $ 184.63 $ 382.65
AXA Premier VIP Small/Mid Cap Growth $ 38.52 $ 116.90 $ 197.09 $ 405.74
AXA Premier VIP Small/Mid Cap Value $ 38.52 $ 116.90 $ 197.09 $ 405.74
AXA Premier VIP Technology $ 41.15 $ 124.53 $ 209.40 $ 428.25
EQ/Aggressive Stock $ 31.60 $ 96.55 $ 163.91 $ 343.47
EQ/Alliance Common Stock $ 29.92 $ 91.57 $ 155.72 $ 327.72
EQ/Alliance Global $ 33.28 $ 101.51 $ 172.04 $ 358.96
EQ/Alliance Growth and Income $ 30.97 $ 94.68 $ 160.85 $ 337.60
EQ/Alliance Growth Investors $ 30.97 $ 94.68 $ 160.85 $ 337.60
EQ/Alliance Intermediate Government Securities $ 30.86 $ 94.37 $ 160.34 $ 336.61
EQ/Alliance International $ 35.90 $ 109.22 $ 184.63 $ 382.65
EQ/Alliance Money Market $ 28.55 $ 87.51 $ 149.03 $ 314.74
EQ/Alliance Premier Growth $ 33.80 $ 103.05 $ 174.57 $ 363.75
EQ/Alliance Quality Bond $ 30.65 $ 93.75 $ 159.31 $ 334.64
EQ/Alliance Small Cap Growth $ 32.86 $ 100.27 $ 170.01 $ 355.11
EQ/Alliance Technology $ 33.80 $ 103.05 $ 174.57 $ 363.75
EQ/AXP New Dimensions $ 31.70 $ 96.86 $ 164.42 $ 344.44
EQ/AXP Strategy Aggressive $ 32.23 $ 98.41 $ 166.97 $ 349.31
EQ/Balanced $ 31.18 $ 95.31 $ 161.87 $ 339.56
EQ/Bernstein Diversified Value $ 31.70 $ 96.86 $ 164.42 $ 344.44
EQ/Calvert Socially Responsible $ 32.75 $ 99.96 $ 169.51 $ 354.14
EQ/Capital Guardian International $ 34.33 $ 104.60 $ 177.09 $ 368.51
EQ/Capital Guardian Research $ 31.70 $ 96.86 $ 164.42 $ 344.44
EQ/Capital Guardian U.S. Equity $ 31.70 $ 96.86 $ 164.42 $ 344.44
EQ/Emerging Markets Equity $ 40.62 $ 123.01 $ 206.95 $ 423.79
EQ/Equity 500 Index $ 27.61 $ 84.70 $ 144.37 $ 305.65
EQ/Evergreen Omega $ 31.70 $ 96.86 $ 164.42 $ 344.44
EQ/FI Mid Cap $ 32.23 $ 98.41 $ 166.97 $ 349.31
EQ/FI Small/Mid Cap Value $ 33.28 $ 101.51 $ 172.04 $ 358.96
EQ/High Yield $ 31.39 $ 95.93 $ 162.89 $ 341.52
EQ/International Equity Index $ 33.28 $ 101.51 $ 172.04 $ 358.96
EQ/J.P. Morgan Core Bond $ 30.13 $ 92.19 $ 156.75 $ 329.71
EQ/Janus Large Cap Growth $ 33.80 $ 103.05 $ 174.57 $ 363.75
EQ/Lazard Small Cap Value $ 33.28 $ 101.51 $ 172.04 $ 358.96
EQ/Marsico Focus $ 33.80 $ 103.05 $ 174.57 $ 363.75
EQ/Mercury Basic Value Equity $ 31.70 $ 96.86 $ 164.42 $ 344.44
EQ/MFS Emerging Growth Companies $ 31.91 $ 97.48 $ 165.44 $ 346.39
EQ/MFS Investors Trust $ 31.70 $ 96.86 $ 164.42 $ 344.44
EQ/MFS Research $ 31.70 $ 96.86 $ 164.42 $ 344.44
EQ/Putnam Growth & Income Value $ 31.70 $ 96.86 $ 164.42 $ 344.44
EQ/Putnam International Equity $ 34.85 $ 106.14 $ 179.61 $ 373.25
EQ/Putnam Voyager $ 31.70 $ 96.86 $ 164.42 $ 344.44
- ----------------------------------------------------------------------------------------------------
6 Fee table
- --------------------------------------------------------------------------------
IF YOU SURRENDER YOUR CONTRACT AT THE END
OF EACH PERIOD SHOWN, THE EXPENSES
WOULD BE:
-------------------------------------------------------
1 YEAR 3 YEARS 5 YEARS 10 YEARS
- --------------------------------------------------------------------------------
EQ/Small Company Index $ 85.70 $ 150.95 $ 218.74 $ 334.64
- --------------------------------------------------------------------------------
IF YOU DO NOT SURRENDER YOUR CONTRACT AT
THE END OF EACH PERIOD SHOWN, THE
EXPENSES WOULD BE:
-------------------------------------------------------
1 YEAR 3 YEARS 5 YEARS 10 YEARS
- --------------------------------------------------------------------------------
EQ/Small Company Index $ 30.65 $ 93.75 $ 159.31 $ 334.64.
(1) The amount accumulated from the $1,000 contribution could not be paid in the
form of an annuity at the end of any of the periods shown in the examples.
This is because if the amount applied to purchase an annuity payout option
is less than $2,000, or the initial payment is less than $20, we may pay the
amount to you in a single sum instead of as payments under an annuity payout
option. See "Accessing your money" in the Prospectus.
IF YOU ELECT A VARIABLE ANNUITY PAYOUT OPTION:
Assuming an annuity payout option could be issued (see note (1) above), and you
elect a variable annuity payout option, the expenses shown in the above example
of "if you do not surrender your contract" would, in each case, be increased by
$5.44 based on the average amount applied to annuity payout options in 2001. See
"Annuity administrative fee" in "Charges and expenses" in the Prospectus.
CONDENSED FINANCIAL INFORMATION
Please see the Appendix at the end of this supplement for unit values and number
of units outstanding as of the period shown for each of the variable investment
options, available as of December 31, 2001.
Fee table 7
THE FOLLOWING IS ADDED AFTER THE INFORMATION UNDER "FOR ALL SERIES CONTRACTS
ISSUED IN NEW YORK -- FIXED MATURITY OPTIONS" IN "CHARGES AND EXPENSES" IN THE
PROSPECTUS:
Charges and expenses
- --------------------------------------------------------------------------------
CHARGES UNDER SERIES 600 CONTRACTS
MORTALITY AND EXPENSE RISKS CHARGE
We deduct a daily charge from the net assets in each variable investment option
to compensate us for mortality and expense risks, including the death benefit.
The daily charge is equivalent to a current annual rate of 0.95% of the net
assets in each variable investment option.
The mortality risk we assume is the risk that annuitants as a group will live
for a longer time than our actuarial tables predict. If that happens, we would
be paying more in annuity benefits than we planned. We also assume a risk that
the mortality assumptions reflected in our guaranteed annuity tables, shown in
each contract, will differ from actual mortality experience. We may change the
actuarial basis for our guaranteed annuity payment tables, but only for new
contributions and only at five year intervals from the contract date. Lastly, we
assume a mortality risk to the extent that at the time of death, the guaranteed
death benefit exceeds the cash value of the contract. In addition, we waive any
withdrawal charge upon payment of a death benefit.
The expense risk we assume is the risk that it will cost us more to issue and
administer the contracts than we expect.
To the extent that the mortality and expense risk charges are not needed to
cover the actual expenses incurred, they may be considered an indirect
reimbursement for certain sales and promotional expenses relating to the
contracts.
CHARGE FOR OTHER EXPENSES
We deduct this daily charge from the net assets in each variable investment
option. This charge, together with the annual administrative charge described
below, is for providing administrative and financial accounting services under
the contracts. The daily charge is equivalent to a maximum annual rate of 0.25%
of the net assets in each variable investment option.
MAXIMUM TOTAL CHARGES. The total annual rate for the above charges is currently
1.20%. We may increase or decrease this total annual rate, but we may not
increase it above a maximum rate of 2.00%. We will only make any increase after
we have sent you advance notice. Any increase or decrease will apply only after
the date of the change. Any changes we make will reflect differences in costs
and anticipated expenses, and will not be unfairly discriminatory.
ANNUAL ADMINISTRATIVE CHARGE
We deduct an administrative charge from your account value on the last day of
each contract year. We will deduct a pro rata portion of the charge if you
surrender your contract, elect an annuity payout option, or the annuitant dies
during the contract year. We deduct the charge if your account value on the last
day of the contract year is less than $25,000 for TSA Advantage(SM) contracts.
If your account value on such date is $25,000 or more for TSA Advantage
contracts, we do not deduct the charge. The current charge is equal to $30 or,
if less, 2% of your current account value plus any amount previously withdrawn
during that contract year.
We may increase this charge if our administrative costs rise, but the charge
will never exceed $65 annually. We reserve the right to deduct this charge on a
quarterly, rather than annual basis.
Also, we may reduce or eliminate the administrative charge when a TSA
Advantage(SM) contract is used by an employer and administrative services are
performed by us at a modified or minimum level. Any reduction or waiver we make
will not be unfairly discriminatory.
The charge is deducted pro rata from the variable investment options and the
guaranteed interest option. If these amounts are insufficient, we will make up
the required amounts from the fixed maturity options to the extent you have
value in those options, unless you tell us otherwise.
We currently waive the annual administration charge that would otherwise be
deducted in the next contract year under any individually owned EQUI-VEST(R)
contract/certificate having an account value that, when combined with the
account value of other EQUI-VEST(R) contracts/certificates owned by the same
person, exceeds $100,000 in the aggregate (as determined in February of each
year). This does not apply to EQUI-VEST(R) contracts/certificates owned by
different members of the same household. We may change or discontinue this
practice at any time without prior notice.
CHARGE FOR THIRD-PARTY TRANSFER OR EXCHANGE
There currently is no third-party transfer (such as in the case of direct
rollover to a traditional IRA contract) or exchange (if your contract is
exchanged for a 403(b)(1) contract issued by another insurance company) charge
for series 600 contracts. We reserve the right to impose this charge in the
future, but it may not exceed a maximum of $65 per occurrence, subject to any
law that applies.
WITHDRAWAL CHARGE FOR SERIES 600 CONTRACTS
A withdrawal charge may apply in three circumstances: (1) you make one or more
withdrawals during a contract year; or (2) you terminate your contract; or (3)
we terminate your contract. The amount of the charge will depend on whether the
free withdrawal amount applies, and the availability of one or more exceptions.
In order to give you the exact dollar amount of the withdrawal you request, we
deduct the amount of the withdrawal and the amount of the withdrawal charges
from your account value. Any amount deducted to pay withdrawal charges is also
subject to a withdrawal charge.
We deduct the withdrawal amount and the withdrawal charge pro rata from the
variable investment options and from the guaranteed interest
8 Charges and expenses
option. If these amounts are insufficient we will make up the required amounts
from the fixed maturity options with the earliest maturities date(s) first. If
we deduct all or a portion of the withdrawal charge from the fixed maturity
options, a market value adjustment may apply. The amount of the withdrawal
charge we deduct is equal to 6% of the amount withdrawn or the defaulted loan
amount during the first six contract years. In the case of a surrender, we will
pay you the greater of (i) the account value after any withdrawal charge has
been imposed, or (ii) the free withdrawal amount plus 94% of the remaining
account value.
We reserve the right to change the amount of the withdrawal charge, but it will
not exceed 6% of the amount withdrawn or the defaulted loan amount. Any change
will not be unfairly discriminatory. Also, the total of all withdrawal charges
assessed will not exceed 8% of all contributions made in the first six contract
years.
10% FREE WITHDRAWAL AMOUNT. Each contract year, you can withdraw up to 10% of
your account value without paying a withdrawal charge. The 10% free withdrawal
amount is determined using your account value at the time you request a
withdrawal, minus any other withdrawals made during the contract year.
EXCEPTIONS TO THE WITHDRAWAL CHARGE. A withdrawal charge will not apply upon
any of the events listed below:
o The annuitant retires under the terms of the TSA plan, or separates from
service;
o The annuitant reaches age 59-1/2 and completes at least five contract years;
o The annuitant dies and a death benefit is payable to the beneficiary;
o We receive a properly completed election form providing for the account
value to be used to buy a life annuity;
o The annuitant reaches age 55 and completes at least five contract years and
we receive a properly completed election form providing for the account
value to be used to buy a period certain annuity. The period certain annuity
must extend beyond the annuitant's age 59-1/2 and must not permit any
prepayment of the unpaid principal before the annuitant reaches age 59-1/2;
o The annuitant completes at least three contract years and we receive a
properly completed election form providing for the account value to be used
to buy a period certain annuity of at least 10 years which does not permit
any prepayment of the unpaid principal;
o A request is made for a refund of an excess contribution within one month of
the date on which the contribution is made;
o The annuitant has qualified to receive Social Security disability benefits
as certified by the Social Security Administration;
o We receive proof satisfactory to us that the annuitant's life expectancy is
six months or less (such proof must include, but is not limited to,
certification by a licensed physician);
o The annuitant has been confined to a nursing home for more than 90 days (or
such other period, if required in your state) as verified by a licensed
physician. A nursing home for this purpose means one which is (a) approved
by Medicare as a provider of skilled nursing care service, or (b) licensed
as a skilled nursing home by the state or territory in which it is located
(it must be within the United States, Puerto Rico, U.S. Virgin Islands, or
Guam) and meets all of the following:
-- its main function is to provide skilled, intermediate, or custodial
nursing care;
-- it provides continuous room and board to three or more persons;
-- it is supervised by a registered nurse or licensed practical nurse;
-- it keeps daily medical records of each patient;
-- it controls and records all medications dispensed; and
-- its primary service is other than to provide housing for residents.
o The annuitant elects a withdrawal that qualifies as a hardship withdrawal
under the federal income tax rules.
Charges and expenses 9
Appendix I: Condensed financial information
- --------------------------------------------------------------------------------
The unit values and number of units outstanding shown below are for contracts
offered under Separate Account A with the same daily asset charges of 1.20%.
SERIES 600 CONTRACTS
UNIT VALUES AND NUMBER OF UNITS OUTSTANDING FOR EACH VARIABLE INVESTMENT OPTION,
EXCEPT FOR THOSE OPTIONS BEING OFFERED FOR THE FIRST TIME ON OR AFTER DECEMBER
31, 2001.
- --------------------------------------------------------------------------------------------------------------
FOR THE YEARS ENDING DECEMBER 31,
1998 1999 2000 2001
- --------------------------------------------------------------------------------------------------------------
EQ/Aggressive Stock
- --------------------------------------------------------------------------------------------------------------
Unit value $ 90.25 $ 105.70 $ 90.50 $ 66.90
- --------------------------------------------------------------------------------------------------------------
Number of units outstanding (000's) -- 17 71 100
- --------------------------------------------------------------------------------------------------------------
EQ/Alliance Common Stock
- --------------------------------------------------------------------------------------------------------------
Unit value $102.87 $ 126.92 $ 107.54 $ 94.83
- --------------------------------------------------------------------------------------------------------------
Number of units outstanding (000's) -- 105 702 944
- --------------------------------------------------------------------------------------------------------------
EQ/Alliance Global
- --------------------------------------------------------------------------------------------------------------
Unit value $ 98.37 $ 134.29 $ 107.66 $ 84.81
- --------------------------------------------------------------------------------------------------------------
Number of units outstanding (000's) -- 20 181 235
- --------------------------------------------------------------------------------------------------------------
EQ/Alliance Growth and Income
- --------------------------------------------------------------------------------------------------------------
Unit value $102.73 $ 120.14 $ 129.01 $ 125.48
- --------------------------------------------------------------------------------------------------------------
Number of units outstanding (000's) -- 37 262 526
- --------------------------------------------------------------------------------------------------------------
EQ/Alliance Growth Investors
- --------------------------------------------------------------------------------------------------------------
Unit value $101.93 $ 127.17 $ 116.93 $ 100.93
- --------------------------------------------------------------------------------------------------------------
Number of units outstanding (000's) -- 21 222 280
- --------------------------------------------------------------------------------------------------------------
EQ/Alliance Intermediate Government Securities
- --------------------------------------------------------------------------------------------------------------
Unit value $103.32 $ 101.97 $ 109.71 $ 116.93
- --------------------------------------------------------------------------------------------------------------
Number of units outstanding (000's) -- 1 16 112
- --------------------------------------------------------------------------------------------------------------
EQ/Alliance International
- --------------------------------------------------------------------------------------------------------------
Unit value $ 93.00 $ 126.30 $ 95.90 $ 72.66
- --------------------------------------------------------------------------------------------------------------
Number of units outstanding (000's) -- 3 36 45
- --------------------------------------------------------------------------------------------------------------
EQ/Alliance Money Market
- --------------------------------------------------------------------------------------------------------------
Unit value $101.68 $ 105.21 $ 110.19 $ 112.74
- --------------------------------------------------------------------------------------------------------------
Number of units outstanding (000's) -- 17 57 125
- --------------------------------------------------------------------------------------------------------------
EQ/Alliance Premier Growth
- --------------------------------------------------------------------------------------------------------------
Unit value -- $ 116.42 $ 93.88 $ 70.52
- --------------------------------------------------------------------------------------------------------------
Number of units outstanding (000's) -- 36 350 438
- --------------------------------------------------------------------------------------------------------------
EQ/Alliance Quality Bond
- --------------------------------------------------------------------------------------------------------------
Unit value $103.62 $ 100.07 $ 110.03 $ 117.42
- --------------------------------------------------------------------------------------------------------------
Number of units outstanding (000's) -- 4 27 112
- --------------------------------------------------------------------------------------------------------------
EQ/Alliance Small Cap Growth
- --------------------------------------------------------------------------------------------------------------
Unit value $ 86.94 $ 109.62 $ 123.09 $ 105.51
- --------------------------------------------------------------------------------------------------------------
Number of units outstanding (000's) -- 2 98 166
- --------------------------------------------------------------------------------------------------------------
EQ/Alliance Technology
- --------------------------------------------------------------------------------------------------------------
Unit value -- -- $ 66.17 $ 49.39
- --------------------------------------------------------------------------------------------------------------
Number of units outstanding (000's) -- -- 128 196
- --------------------------------------------------------------------------------------------------------------
EQ/AXP New Dimensions
- --------------------------------------------------------------------------------------------------------------
Unit value -- -- $ 82.91 $ 69.20
- --------------------------------------------------------------------------------------------------------------
Number of units outstanding (000's) -- -- 2 14
- --------------------------------------------------------------------------------------------------------------
EQ/AXP Strategy Aggressive
- --------------------------------------------------------------------------------------------------------------
Unit value -- -- $ 62.15 $ 40.85
- --------------------------------------------------------------------------------------------------------------
Number of units outstanding (000's) -- -- 2 24
- --------------------------------------------------------------------------------------------------------------
Appendix I: Condensed financial information A-1
SERIES 600 CONTRACTS (CONTINUED)
UNIT VALUES AND NUMBER OF UNITS OUTSTANDING FOR EACH VARIABLE INVESTMENT OPTION,
EXCEPT FOR THOSE OPTIONS BEING OFFERED FOR THE FIRST TIME ON OR AFTER DECEMBER
31, 2001.
- --------------------------------------------------------------------------------------------------------------
FOR THE YEARS ENDING DECEMBER 31,
1998 1999 2000 2001
- --------------------------------------------------------------------------------------------------------------
EQ/Balanced
--------------------------------------------------------------------------------------------------------------
Unit value $ 102.39 $ 118.86 $ 115.59 $ 111.79
- --------------------------------------------------------------------------------------------------------------
Number of units outstanding (000's) -- 11 101 287
- --------------------------------------------------------------------------------------------------------------
EQ/Bernstein Diversified Value
- --------------------------------------------------------------------------------------------------------------
Unit value -- -- -- $ 94.71
- --------------------------------------------------------------------------------------------------------------
Number of units outstanding (000's) -- -- -- 71
- --------------------------------------------------------------------------------------------------------------
EQ/Calvert Socially Responsible
- --------------------------------------------------------------------------------------------------------------
Unit value -- $ 107.64 $ 103.26 $ 87.02
- --------------------------------------------------------------------------------------------------------------
Number of units outstanding (000's) -- -- -- --
- --------------------------------------------------------------------------------------------------------------
EQ/Capital Guardian Research
- --------------------------------------------------------------------------------------------------------------
Unit value -- 106.84 111.80 108.22
- --------------------------------------------------------------------------------------------------------------
Number of units outstanding (000's) -- 1 9 31
- --------------------------------------------------------------------------------------------------------------
EQ/Capital Guardian U.S. Equity
- --------------------------------------------------------------------------------------------------------------
Unit value -- $ 101.69 $ 104.08 $ 100.76
- --------------------------------------------------------------------------------------------------------------
Number of units outstanding (000's) -- 1 11 21
- --------------------------------------------------------------------------------------------------------------
EQ/Emerging Markets Equity
- --------------------------------------------------------------------------------------------------------------
Unit value $ 81.49 $ 157.61 $ 93.36 $ 87.48
- --------------------------------------------------------------------------------------------------------------
Number of units outstanding (000's) -- 5 42 44
- --------------------------------------------------------------------------------------------------------------
EQ/Equity 500 Index
- --------------------------------------------------------------------------------------------------------------
Unit value $ 103.69 $ 123.02 $ 109.63 $ 95.13
- --------------------------------------------------------------------------------------------------------------
Number of units outstanding (000's) -- 50 258 367
- --------------------------------------------------------------------------------------------------------------
EQ/Evergreen Omega
- --------------------------------------------------------------------------------------------------------------
Unit value -- $ 106.63 $ 93.02 $ 76.26
- --------------------------------------------------------------------------------------------------------------
Number of units outstanding (000's) -- -- 3 10
- --------------------------------------------------------------------------------------------------------------
EQ/FI Mid Cap
- --------------------------------------------------------------------------------------------------------------
Unit value -- -- $ 100.02 $ 85.57
- --------------------------------------------------------------------------------------------------------------
Number of units outstanding (000's) -- -- 9 106
- --------------------------------------------------------------------------------------------------------------
EQ/FI Small/Mid Cap Value
- --------------------------------------------------------------------------------------------------------------
Unit value $ 82.88 $ 83.36 $ 86.60 $ 88.97
- --------------------------------------------------------------------------------------------------------------
Number of units outstanding (000's) -- 1 14 126
- --------------------------------------------------------------------------------------------------------------
EQ/High Yield
- --------------------------------------------------------------------------------------------------------------
Unit value $ 89.20 $ 84.97 $ 78.49 $ 76.09
- --------------------------------------------------------------------------------------------------------------
Number of units outstanding (000's) -- 5 28 49
- --------------------------------------------------------------------------------------------------------------
EQ/Janus Large Cap Growth
- --------------------------------------------------------------------------------------------------------------
Unit value -- -- $ 83.99 $ 63.92
- --------------------------------------------------------------------------------------------------------------
Number of units outstanding (000's) -- -- 12 119
- --------------------------------------------------------------------------------------------------------------
EQ/Marsico Focus
- --------------------------------------------------------------------------------------------------------------
Unit value -- -- -- $ 105.94
- --------------------------------------------------------------------------------------------------------------
Number of units outstanding (000's) -- -- -- --
- --------------------------------------------------------------------------------------------------------------
EQ/Mercury Basic Value Equity
- --------------------------------------------------------------------------------------------------------------
Unit value $ 97.91 $ 115.06 $ 127.11 $ 132.52
- --------------------------------------------------------------------------------------------------------------
Number of units outstanding (000's) -- 7 41 119
- --------------------------------------------------------------------------------------------------------------
EQ/MFS Emerging Growth Companies
- --------------------------------------------------------------------------------------------------------------
Unit value $ 103.53 $ 177.65 $ 142.46 $ 92.82
- --------------------------------------------------------------------------------------------------------------
Number of units outstanding (000's) -- 36 288 316
- --------------------------------------------------------------------------------------------------------------
EQ/MFS Investors Trust
- --------------------------------------------------------------------------------------------------------------
Unit value -- $ 104.53 $ 102.57 $ 85.14
- --------------------------------------------------------------------------------------------------------------
Number of units outstanding (000's) -- 2 17 21
- --------------------------------------------------------------------------------------------------------------
A-2 Appendix I: Condensed financial information
SERIES 600 CONTRACTS (CONTINUED)
UNIT VALUES AND NUMBER OF UNITS OUTSTANDING FOR EACH VARIABLE INVESTMENT OPTION,
EXCEPT FOR THOSE OPTIONS BEING OFFERED FOR THE FIRST TIME ON OR AFTER DECEMBER
31, 2001.
- --------------------------------------------------------------------------------------------------------------
FOR THE YEARS ENDING DECEMBER 31,
1998 1999 2000 2001
- --------------------------------------------------------------------------------------------------------------
EQ/MFS Research
Unit value $ 99.10 $ 120.55 $ 112.84 $ 87.16
- --------------------------------------------------------------------------------------------------------------
Number of units outstanding (000's) -- 6 84 100
- --------------------------------------------------------------------------------------------------------------
EQ/Putnam Growth & Income Value
- --------------------------------------------------------------------------------------------------------------
Unit value $100.60 $ 98.04 $ 103.43 $ 95.23
- --------------------------------------------------------------------------------------------------------------
Number of units outstanding (000's) -- 3 17 32
- --------------------------------------------------------------------------------------------------------------
EQ/T. Rowe Price International Stock
- --------------------------------------------------------------------------------------------------------------
Unit value $ 94.15 $ 122.67 $ 98.56 $ 76.12
- --------------------------------------------------------------------------------------------------------------
Number of units outstanding (000's) -- 3 42 65
- --------------------------------------------------------------------------------------------------------------
Appendix I: Condensed financial information A-3
EQUI-VEST(R) Employer-Sponsored Retirement Programs
SUPPLEMENT DATED MAY 1, 2002 TO THE EQUI-VEST(R) EMPLOYER-SPONSORED RETIREMENT
PROGRAMS PROSPECTUS DATED MAY 1, 2002
EQUI-VEST(R) VANTAGE(SM)
- --------------------------------------------------------------------------------
This Supplement adds to and modifies certain information contained in the
Prospectus dated May 1, 2002, for the EQUI-VEST(R) Employer-Sponsored Retirement
Programs offered by The Equitable Life Assurance Society of the United States
("Prospectus").
We offer the EQUI-VEST(R) Vantage(SM) contract to fund certain Section 403(b)
plans ("plans"). The EQUI-VEST(R) Vantage(SM) contract is available to plans
that meet our requirements, which may include requirements regarding plan
vesting provisions. The EQUI-VEST(R) Vantage(SM) contract may not currently be
available in every state. Your financial professional can provide information
about state availability.
EQUI-VEST(R) Vantage(SM) is a group variable deferred annuity contract. Either
the plan trustee or the employer will be the EQUI-VEST(R) Vantage(SM) contract
holder. Certain rights may be exercised by employees covered under an employer`s
plan (the "participants"). These rights will be set forth in a participation
certificate provided to each participant. The participant will also be the
annuitant. The 12-month period beginning on the participant`s participation date
and each 12-month period thereafter is a "participation year." The
"participation date" is the date we receive a participant`s properly completed
and signed enrollment form and any other required documents at our processing
office. "Contract date" is the date following our acceptance of a properly
completed and signed application (and other required documents) on which the
first participant is enrolled in the contract. The 12-month period beginning on
a contract date and each 12-month period after that is a "contract year." The
end of each 12-month period is the "contract anniversary." Terms and other
provisions not defined or modified in this Supplement are the same as in the
Prospectus.1
We offer the EQUI-VEST(R) Vantage(SM) contract to purchasers on the same basis
and under the same terms and conditions described in the Prospectus as those
that apply to EQUI-VEST(R) Series 100 and 200 contracts, except for certain
material differences described in this Supplement. This Supplement should be
read together with the Prospectus. You should be aware that an annuity contract
that is a Tax Sheltered Annuity (TSA), such as the EQUI-VEST(R) Vantage(SM) ,
does not provide tax deferral benefits beyond those already provided by the
Internal Revenue Code. Before participating in EQUI-VEST(R) Vantage(SM) TSA, you
should consider whether its features and benefits beyond tax deferral meet your
needs and goals. You may also want to consider the relative features, benefits
and costs of this annuity and with any other investment that you may use in
connection with your retirement plan or arrangement. (For more information, see
"Tax information," in the Prospectus).
----------
See "Tax information" in the Prospectus for a more detailed discussion of
sources of contributions, certain contribution limitations and other tax
information for TSA contracts.
We may at some future time, under certain conditions and subject to applicable
law, allow a current owner of an EQUI-VEST(R) series 100, series 200, or series
600 TSA contract to exchange it for participation in an EQUI-VEST(R) Vantage(SM)
contract. An exchange for participation in an EQUI-VEST(R) Vantage(SM) contract
may or may not be advantageous, based on all of the circumstances, including a
comparison of contractual terms and conditions, and charges and deductions. We
will provide additional information upon request at such time as exchanges may
be permitted.
Material differences between EQUI-VEST(R) Vantage(SM) and the provisions of the
EQUI-VEST(R) series 100 and 200 contracts described in the Prospectus include
the information above as well as the following:
- -------
1 This Supplement distinguishes between "contract" and "participation
certificate" as well as "contract holder" and "participant" when describing
the EQUI-VEST(R) Vantage(SM) product. The Prospectus does not make these
distinctions and generally uses the terms "you" and "your" when referring to
the person who has the right and to "contract" when referring to the
participation certificate or contract that includes the right.
X00320
1. THE FOLLOWING IS ADDED AS A NEW HEADING TO "EQUI-VEST(R) EMPLOYER-SPONSORED
RETIREMENT PROGRAMS AT A GLANCE -- KEY FEATURES" BEFORE "PAYOUT OPTIONS" ON
PAGE 13 OF THE PROSPECTUS:
EQUI-VEST(R) VANTAGE(SM)
DEATH BENEFIT PROTECTION The contract provides a death benefit for the
beneficiary should the annuitant die. The
death benefit is equal to the account value
under the contract attributable to the
participant or the minimum death benefit,
whichever is higher. However, if you elect the
optional enhanced death benefit, the death
benefit is equal to the account value under
the contract attributable to the participant
or the enhanced death benefit, whichever is
higher.
2. THE FOLLOWING IS ADDED TO "EQUI-VEST(R) EMPLOYER-SPONSORED RETIREMENT
PROGRAMS AT A GLANCE -- KEY FEATURES" UNDER "FEES AND CHARGES" ON PAGE 13 OF
THE PROSPECTUS:
- --------------------------------------------------------------------------------
FEES AND CHARGES FOR o Separate account charge deducted daily on
EQUI-VEST(R) VANTAGE(SM) amounts invested in variable investment options:
Varies by employer group, annual rate ranges
between 0% -- 0.90%.
o Annual administrative charge: There is no annual
administrative charge.
o Charge for third-party transfer (such as in the
case of a direct transfer of the account value
to another 403(b) arrangement
("employer-designated funding vehicle") or a
transfer or direct rollover to another contract
or custodial arrangement that meets the
requirements of Section 403(b)(1) or Section
403(b)(7) of the Internal Revenue Code
respectively or such other qualified plan or
arrangement as permitted by applicable law, or a
direct rollover to a traditional IRA contract):
$25 current ($65 maximum) per occurrence per
participant.
o No sales charge deducted at the time
contributions are made.
o Withdrawal charge: We deduct a charge of up to
6% of the amount withdrawn from the account
value under the contract attributable to the
participant for whom the withdrawal is made (or
of the defaulted loan amount, if applicable) in
the first five contract years or participation
years, depending upon the employer's group. The
total of all withdrawal charges may not exceed
8% of all contributions attributable to the
participant in the first five contract or
participation years (as applicable) that are
permitted to be withdrawn.
o We deduct a charge designed to approximate
certain taxes that may be imposed on us, such as
premium taxes in a participant`s state. The
charge is generally deducted from the amount
applied to an annuity payout option.
o We deduct an annual charge equal to 0.15% of the
account value on each participation date
anniversary if you elect the optional enhanced
death benefit.
o We deduct a $350 annuity administrative fee from
amounts applied to a variable annuity payout
option.
o Annual expenses of EQ Advisors Trust and AXA
Premier VIP Trust (the "Trusts") portfolios are
calculated as a percentage of the average daily
net assets invested in each portfolio. These
expenses include management fees ranging from
0.25% to 1.20% annually, 12b-1 fees of 0.25%
annually, and other expenses.
- --------------------------------------------------------------------------------
3. VARIABLE INVESTMENT OPTIONS
The Variable Investment Options for which information is provided in Section 4
below are available under the contract, subject to state regulatory approval and
availability under your employer's plan.
2
4. THE FOLLOWING TABLE AND EXAMPLES ARE ADDED AFTER "IF YOU ELECT A VARIABLE
ANNUITY PAYOUT OPTION" ON PAGE 19 OF THE PROSPECTUS:
FEE TABLE
The fee table below will help participants and contract holders understand the
charges and expenses that apply to EQUI-VEST(R) Vantage(SM). The table reflects
charges that the participant will directly incur on account values under the
contract that are attributable to the participants, as well as charges and
expenses of the portfolios that the participant bears indirectly. Charges
designed to approximate certain taxes that may be imposed on us, such as premium
taxes in a participant`s state, may also apply. Also, an annuity administrative
fee may apply when a participant`s annuity payout option begins. Each of the
charges and expenses is more fully described in "Charges and expenses" later in
this Supplement.
The guaranteed interest option and fixed maturity options discussed in the
Prospectus are not covered by the fee table and examples. However, the
withdrawal charge, the optional enhanced death benefit charge, and the
third-party transfer or exchange charge do apply to the guaranteed interest and
the fixed maturity options. A market value adjustment (up or down) may apply as
a result of a withdrawal, transfer or surrender from a fixed maturity option.
EQUI-VEST(R) VANTAGE(SM) CONTRACTS
- -------------------------------------------------------------------------------------------------------------------
CHARGES WE DEDUCT FROM THE VARIABLE INVESTMENT OPTIONS EXPRESSED AS AN ANNUAL PERCENTAGE OF DAILY NET ASSETS
- -------------------------------------------------------------------------------------------------------------------
Separate account charge 0.0% to 0.90%1
- -------------------------------------------------------------------------------------------------------------------
CHARGES WE DEDUCT FROM THE ACCOUNT VALUE ON EACH CONTRACT DATE ANNIVERSARY
- -------------------------------------------------------------------------------------------------------------------
Annual administrative charge $0
- -------------------------------------------------------------------------------------------------------------------
CHARGES WE DEDUCT FROM THE ACCOUNT VALUE AT THE TIME YOU REQUEST CERTAIN TRANSACTIONS
- -------------------------------------------------------------------------------------------------------------------
Withdrawal charge 6% of the amount withdrawn (or the defaulted loan
amount, if applicable) from the account value
attributable to a participant under the contract
during the first four contract or participation
years, as applicable and 5% of such amount during
the fifth contract or participation year, as
applicable (not to exceed 8% of contributions
attributable to the participant that are permitted
to be withdrawn)
Charge for third-party transfer or direct rollover $25 current ($65 maximum) (per occurrence per
participant)
- -------------------------------------------------------------------------------------------------------------------
CHARGES WE DEDUCT FROM THE ACCOUNT VALUE EACH YEAR IF A PARTICIPANT ELECTS THE OPTIONAL ENHANCED DEATH BENEFIT
- -------------------------------------------------------------------------------------------------------------------
Optional enhanced death benefit charge (as a percentage of
the account value attributable to the participant is
deducted annually on each participation date anniversary
until age 85 0.15%
- -------------------------------------------------------------------------------------------------------------------
1 For mortality and expense risks, and administrative and financial accounting
expenses. A portion of this charge is for providing the death benefit.
3
THE TRUSTS ANNUAL EXPENSES
(AS A PERCENTAGE OF AVERAGE DAILY NET ASSETS IN EACH PORTFOLIO)
- -------------------------------------------------------------------------------------------------------------------
NET
TOTAL ANNUAL
MANAGEMENT FEES OTHER EXPENSES EXPENSES (AFTER
(AFTER EXPENSE (AFTER EXPENSE EXPENSE
PORTFOLIO NAME LIMITATION)(1) 12B-1 FEES(2) LIMITATION)(3) LIMITATION)(4)
- -------------------------------------------------------------------------------------------------------------------
AXA PREMIER VIP TRUST:
- -------------------------------------------------------------------------------------------------------------------
AXA Premier VIP Core Bond* 0.00% 0.25% 0.70% 0.95%
AXA Premier VIP Health Care* 0.44% 0.25% 1.16% 1.85%
AXA Premier VIP International Equity* 0.62% 0.25% 0.93% 1.80%
AXA Premier VIP Large Cap Core Equity* 0.17% 0.25% 0.93% 1.35%
AXA Premier VIP Large Cap Growth* 0.31% 0.25% 0.79% 1.35%
AXA Premier VIP Large Cap Value* 0.08% 0.25% 1.02% 1.35%
AXA Premier VIP Small/Mid Cap Growrth* 0.42% 0.25% 0.93% 1.60%
AXA Premier VIP Small/Mid Cap Value* 0.20% 0.25% 1.15% 1.60%
AXA Premier VIP Technology* 0.58% 0.25% 1.02% 1.85%
- -------------------------------------------------------------------------------------------------------------------
EQ ADVISORS TRUST:
- -------------------------------------------------------------------------------------------------------------------
EQ/Aggressive Stock 0.61% 0.25% 0.08% 0.94%
EQ/Alliance Common Stock 0.46% 0.25% 0.07% 0.78%
EQ/Alliance Global 0.73% 0.25% 0.12% 1.10%
EQ/Alliance Growth and Income 0.57% 0.25% 0.06% 0.88%
EQ/Alliance Growth Investors 0.57% 0.25% 0.06% 0.88%
EQ/Alliance Intermediate Government Securities 0.50% 0.25% 0.12% 0.87%
EQ/Alliance International 0.85% 0.25% 0.25% 1.35%
EQ/Alliance Money Market 0.33% 0.25% 0.07% 0.65%
EQ/Alliance Premier Growth 0.84% 0.25% 0.06% 1.15%
EQ/Alliance Quality Bond 0.53% 0.25% 0.07% 0.85%
EQ/Alliance Small Cap Growth 0.75% 0.25% 0.06% 1.06%
EQ/Alliance Technology 0.82% 0.25% 0.08% 1.15%
EQ/AXP New Dimensions 0.00% 0.25% 0.70% 0.95%
EQ/AXP Strategy Aggressive 0.00% 0.25% 0.75% 1.00%
EQ/Balanced 0.57% 0.25% 0.08% 0.90%
EQ/Bernstein Diversified Value 0.61% 0.25% 0.09% 0.95%
EQ/Calvert Socially Responsible 0.00% 0.25% 0.80% 1.05%
EQ/Cap Guardian International 0.66% 0.25% 0.29% 1.20%
EQ/Cap Guardian Research 0.55% 0.25% 0.15% 0.95%
EQ/Cap Guardian US Equity 0.59% 0.25% 0.11% 0.95%
EQ/Emerging Markets Equity 0.87% 0.25% 0.68% 1.80%
EQ/Equity 500 Index 0.25% 0.25% 0.06% 0.56%
EQ/Evergreen Omega 0.00% 0.25% 0.70% 0.95%
EQ/FI Mid Cap 0.48% 0.25% 0.27% 1.00%
EQ/FI Small/Mid Cap Value 0.74% 0.25% 0.11% 1.10%
EQ/High Yield 0.60% 0.25% 0.07% 0.92%
EQ/International Equity Index 0.35% 0.25% 0.50% 1.10%
EQ/J.P. Morgan Core Bond 0.44% 0.25% 0.11% 0.80%
EQ/Janus Large Cap Growth 0.76% 0.25% 0.14% 1.15%
EQ/Lazard Small Cap Value 0.72% 0.25% 0.13% 1.10%
EQ/Marsico Focus 0.00% 0.25% 0.90% 1.15%
EQ/Mercury Basic Value Equity 0.60% 0.25% 0.10% 0.95%
EQ/MFS Emerging Growth Companies 0.63% 0.25% 0.09% 0.97%
EQ/MFS Investors Trust 0.58% 0.25% 0.12% 0.95%
EQ/MFS Research 0.63% 0.25% 0.07% 0.95%
EQ/Putnam Growth & Income Value 0.57% 0.25% 0.13% 0.95%
EQ/Putnam International Equity 0.71% 0.25% 0.29% 1.25%
EQ/Putnam Voyager 0.62% 0.25% 0.08% 0.95%
EQ/Small Company Index 0.25% 0.25% 0.35% 0.85%
- -------------------------------------------------------------------------------------------------------------------
* Subject to state availability
(1) The management fee for each portfolio cannot be increased without a vote of
that Portfolio`s shareholders. See footnote (4) for any expense limitation
agreement information.
(2) Portfolio shares are all subject to fees imposed under the distribution plan
(the "Rule 12b-1 Plan") adopted by the Trusts pursuant to Rule 12b-1 under
the Investment Company Act of 1940. The 12b-1 fee can be increased in
accordance with the terms of the Rule 12b-1 Plan and the Investment Company
Act of 1940.
(3) The amounts shown as "Other Expenses" will fluctuate from year to year
depending on actual expenses. Since initial seed capital was invested for
the EQ/Marsico Focus Portfolio on August 31, 2001, "Other Expenses" shown
have been annualized. Initial seed capital was invested for the Portfolios
of the AXA Premier VIP Trust on December 31, 2001, thus, "Other Expenses"
shown are estimated. See footnote (4) for any expense limitation agreement
information.
(4) Equitable Life, the Trusts' manager, has entered into expense limitation
agreements with respect to certain Portfolios which are effective from May
1, 2002 through April 30, 2003. Under these agreements Equitable Life has
agreed to waive or limit its fees and assume other expenses of each of these
Portfolios, if necessary, in an amount that limits each Portfolio`s
4
Total Annual Expenses (exclusive of interest, taxes, brokerage commissions,
capitalized expenditures, and extraordinary expenses) to not more than the
amounts specified above as "Net Total Annual Expenses." Each Portfolio may at a
later date make a reimbursement to Equitable Life for any of the management fees
waived or limited and other expenses assumed and paid by Equitable Life pursuant
to the expense limitation agreement and provided that the Portfolio`s current
annual operating expenses do not exceed the operating expense limit determined
for such portfolio. For more information see the prospectus for each Trust. The
following chart indicates other expenses before any fee waivers and/or expense
reimbursements that would have applied to each Portfolio. Portfolios that are
not listed below do not have an expense limitation arrangement in effect or the
expense limitation arrangement did not result in a fee waiver or reimbursement.
- --------------------------------------------------------------------------------
MANAGEMENT OTHER EXPENSES
FEES (BEFORE ANY (BEFORE ANY FEE
FEE WAIVERS WAIVERS AND/OR
AND/OR EXPENSE EXPENSE
PORTFOLIO NAME REIMBURSEMENTS) REIMBURSEMENTS)
- --------------------------------------------------------------------------------
AXA PREMIER VIP TRUST:
- --------------------------------------------------------------------------------
AXA Premier VIP Core Bond 0.60% 0.84%
AXA Premier VIP Health Care 1.20% 1.16%
AXA Premier VIP International
Equity 1.05% 0.93%
AXA Premier VIP Large Cap Core
Equity 0.90% 0.93%
AXA Premier VIP Large Cap
Growth 0.90% 0.79%
AXA Premier VIP Large Cap
Value 0.90% 1.02%
AXA Premier VIP Small/Mid Cap
Growrth 1.10% 0.93%
AXA Premier VIP Small/Mid Cap
Value 1.10% 1.15%
AXA Premier VIP Technology 1.20% 1.02%
- --------------------------------------------------------------------------------
EQ ADVISORS TRUST:
- --------------------------------------------------------------------------------
EQ/Alliance Premier Growth 0.90% 0.06%
EQ/Alliance Technology 0.90% 0.08%
EQ/AXP New Dimensions 0.65% 1.06%
EQ/AXP Strategy Aggressive 0.70% 0.77%
EQ/Bernstein Diversified Value 0.65% 0.09%
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
MANAGEMENT OTHER EXPENSES
FEES (BEFORE ANY (BEFORE ANY FEE
FEE WAIVERS WAIVERS AND/OR
AND/OR EXPENSE EXPENSE
PORTFOLIO NAME REIMBURSEMENTS) REIMBURSEMENTS)
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
EQ/Calvert Socially Responsible 0.65% 1.46%
EQ/Capital Guardian
International 0.85% 0.29%
EQ/Capital Guardian Research 0.65% 0.15%
EQ/Capital Guardian US Equity 0.65% 0.11%
EQ/Emerging Markets Equity 1.15% 0.68%
EQ/Evergreen Omega 0.65% 0.99%
EQ/FI Mid Cap 0.70% 0.27%
EQ/FI Small/Mid Cap Value 0.75% 0.11%
EQ/International Equity Index 0.35% 0.50%
EQ/J.P. Morgan Core Bond 0.45% 0.11%
EQ/Janus Large Cap Growth 0.90% 0.14%
EQ/Lazard Small Cap Value 0.75% 0.13%
EQ/Marsico Focus 0.90% 2.44%
EQ/MFS Investors Trust 0.60% 0.12%
EQ/MFS Research 0.65% 0.07%
EQ/Putnam Growth & Income
Value 0.60% 0.13%
EQ/Putnam International Equity 0.85% 0.29%
EQ/Putnam Voyager 0.65% 0.08%
- --------------------------------------------------------------------------------
5
EXAMPLES: EQUI-VEST(R) VANTAGESM CONTRACTS
For the EQUI-VEST(R) Vantage(SM) contract, the examples show the expenses that a
hypothetical certificate holder would pay in the situations illustrated. We
assume a single contribution of $1,000 is invested in one of the variable
investment options listed and a 5% annual return is earned on assets in that
option.(1) We also assume that the contract year and participation year is the
same, the optional enhanced death benefit has been elected and that there is no
waiver of the withdrawal charge. Total Separate Account A expenses used to
compute the example below are the maximum charges that could apply under an
EQUI-VEST(R) Vantage(SM) contract. Please note that the charges that would apply
under your contract may be lower if: (i) your participation is under a contract
with lower Separate Account A charges; (ii) your participation is under a
contract that either no longer has a withdrawal charge, or has a lesser
percentage withdrawal charge, or has a shorter withdrawal charge period
associated with it than is used in the examples; or (iii) you have not elected
the optional enhanced death benefit. The examples assume the continuation of
total annual expenses (after expense limitation) shown for each portfolio of EQ
Advisors Trust and AXA Premier VIP Trust in the table, above, for the entire
one, three, five and ten year (if applicable) periods included in the examples.
The EQUI-VEST(R) Vantage(SM) contracts were first offered on January 14, 2002.
These examples should not be considered a representation of past or future
expense for each option. Actual expenses may be greater or less than those
shown. Similarly, the annual rate of return assumed in the examples is not an
estimate or guarantee of future investment performance.
- ----------------------------------------------------------------------------------------------------
IF YOU SURRENDER YOUR CONTRACT AT THE END
OF EACH PERIOD SHOWN, THE EXPENSES
WOULD BE:
---------------------------------------------------
1 YEAR 3 YEARS 5 YEARS 10 YEARS
- ----------------------------------------------------------------------------------------------------
AXA Premier VIP Core Bond $ 82.74 $ 130.22 $ 168.95 $ 239.64
AXA Premier VIP Health Care $ 91.62 $ 156.74 $ 213.40 $ 332.73
AXA Premier VIP International Equity $ 91.13 $ 155.28 $ 210.98 $ 327.78
AXA Premier VIP Large Cap Core Equity $ 86.69 $ 142.07 $ 188.92 $ 282.07
AXA Premier VIP Large Cap Growth $ 86.69 $ 142.07 $ 188.92 $ 282.07
AXA Premier VIP Large Cap Value $ 86.69 $ 142.07 $ 188.92 $ 282.07
AXA Premier VIP Small/Mid Cap Growth $ 89.16 $ 149.42 $ 201.23 $ 307.72
AXA Premier VIP Small/Mid Cap Value $ 89.16 $ 149.42 $ 201.23 $ 307.72
AXA Premier VIP Technology $ 91.62 $ 156.74 $ 213.40 $ 332.73
EQ/Aggressive Stock $ 82.64 $ 129.92 $ 168.45 $ 238.55
EQ/Alliance Common Stock $ 81.06 $ 125.15 $ 160.36 $ 221.08
EQ/Alliance Global $ 84.22 $ 134.67 $ 176.48 $ 255.75
EQ/Alliance Growth and Income $ 82.05 $ 128.13 $ 165.42 $ 232.03
EQ/Alliance Growth Investors $ 82.05 $ 128.13 $ 165.42 $ 232.03
EQ/Alliance Intermediate Government Securities $ 81.95 $ 127.84 $ 164.92 $ 230.94
EQ/Alliance International $ 86.69 $ 142.07 $ 188.92 $ 282.07
EQ/Alliance Money Market $ 79.78 $ 121.27 $ 153.75 $ 206.67
EQ/Alliance Premier Growth $ 84.71 $ 136.15 $ 178.98 $ 261.07
EQ/Alliance Quality Bond $ 81.75 $ 127.24 $ 163.91 $ 228.76
EQ/Alliance Small Cap Growth $ 83.83 $ 133.49 $ 174.48 $ 251.48
EQ/Alliance Technology $ 84.71 $ 136.15 $ 178.98 $ 261.07
EQ/AXP New Dimensions $ 82.74 $ 130.22 $ 168.95 $ 239.64
EQ/AXP Strategy Aggressive $ 83.23 $ 131.70 $ 171.47 $ 245.03
EQ/Balanced $ 82.25 $ 128.73 $ 166.43 $ 234.21
EQ/Bernstein Diversified Value $ 82.74 $ 130.22 $ 168.95 $ 239.64
EQ/Calvert Socially Responsible $ 83.73 $ 133.19 $ 173.98 $ 250.41
EQ/Capital Guardian International $ 85.21 $ 137.63 $ 181.47 $ 266.36
EQ/Capital Guardian Research $ 82.74 $ 130.22 $ 168.95 $ 239.64
EQ/Capital Guardian U.S. Equity $ 82.74 $ 130.22 $ 168.95 $ 239.64
EQ/Emerging Markets Equity $ 91.13 $ 155.28 $ 210.98 $ 327.78
EQ/Equity 500 Index $ 78.89 $ 118.57 $ 149.15 $ 196.58
EQ/Evergreen Omega $ 82.74 $ 130.22 $ 168.95 $ 239.64
EQ/FI Mid Cap $ 83.23 $ 131.70 $ 171.47 $ 245.03
EQ/FI Small/Mid Cap Value $ 84.22 $ 134.67 $ 176.48 $ 255.75
EQ/High Yield $ 82.44 $ 129.32 $ 167.44 $ 236.38
EQ/International Equity Index $ 84.22 $ 134.67 $ 176.48 $ 255.75
EQ/J.P. Morgan Core Bond $ 81.26 $ 125.75 $ 161.37 $ 223.28
EQ/Janus Large Cap Growth $ 84.71 $ 136.15 $ 178.98 $ 261.07
EQ/Lazard Small Cap Value $ 84.22 $ 134.67 $ 176.48 $ 255.75
EQ/Marsico Focus $ 84.71 $ 136.15 $ 178.98 $ 261.07
EQ/Mercury Basic Value Equity $ 82.74 $ 130.22 $ 168.95 $ 239.64
EQ/MFS Emerging Growth Companies $ 82.94 $ 130.81 $ 169.96 $ 241.80
EQ/MFS Investors Trust $ 82.74 $ 130.22 $ 168.95 $ 239.64
EQ/MFS Research $ 82.74 $ 130.22 $ 168.95 $ 239.64
- ----------------------------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------------
IF YOU DO NOT SURRENDER YOUR CONTRACT AT
THE END OF EACH PERIOD SHOWN, THE
EXPENSES WOULD BE:
---------------------------------------------------
1 YEAR 3 YEARS 5 YEARS 10 YEARS
- ----------------------------------------------------------------------------------------------------
AXA Premier VIP Core Bond $ 21.00 $ 64.84 $ 111.27 $ 239.64
AXA Premier VIP Health Care $ 30.45 $ 93.15 $ 158.32 $ 332.73
AXA Premier VIP International Equity $ 29.93 $ 91.59 $ 155.75 $ 327.78
AXA Premier VIP Large Cap Core Equity $ 25.20 $ 77.49 $ 132.41 $ 282.07
AXA Premier VIP Large Cap Growth $ 25.20 $ 77.49 $ 132.41 $ 282.07
AXA Premier VIP Large Cap Value $ 25.20 $ 77.49 $ 132.41 $ 282.07
AXA Premier VIP Small/Mid Cap Growth $ 27.82 $ 85.34 $ 145.43 $ 307.72
AXA Premier VIP Small/Mid Cap Value $ 27.82 $ 85.34 $ 145.43 $ 307.72
AXA Premier VIP Technology $ 30.45 $ 93.15 $ 158.32 $ 332.73
EQ/Aggressive Stock $ 20.90 $ 64.53 $ 110.74 $ 238.55
EQ/Alliance Common Stock $ 19.21 $ 59.44 $ 102.18 $ 221.08
EQ/Alliance Global $ 22.58 $ 69.60 $ 119.24 $ 255.75
EQ/Alliance Growth and Income $ 20.26 $ 62.62 $ 107.53 $ 232.03
EQ/Alliance Growth Investors $ 20.26 $ 62.62 $ 107.53 $ 232.03
EQ/Alliance Intermediate Government Securities $ 20.16 $ 62.30 $ 107.00 $ 230.94
EQ/Alliance International $ 25.20 $ 77.49 $ 132.41 $ 282.07
EQ/Alliance Money Market $ 17.85 $ 55.29 $ 95.18 $ 206.67
EQ/Alliance Premier Growth $ 23.10 $ 71.18 $ 121.88 $ 261.07
EQ/Alliance Quality Bond $ 19.95 $ 61.67 $ 105.93 $ 228.76
EQ/Alliance Small Cap Growth $ 22.16 $ 68.33 $ 117.12 $ 251.48
EQ/Alliance Technology $ 23.10 $ 71.18 $ 121.88 $ 261.07
EQ/AXP New Dimensions $ 21.00 $ 64.84 $ 111.27 $ 239.64
EQ/AXP Strategy Aggressive $ 21.52 $ 66.43 $ 113.93 $ 245.03
EQ/Balanced $ 20.47 $ 63.26 $ 108.60 $ 234.21
EQ/Bernstein Diversified Value $ 21.00 $ 64.84 $ 111.27 $ 239.64
EQ/Calvert Socially Responsible $ 22.05 $ 68.02 $ 116.59 $ 250.41
EQ/Capital Guardian International $ 23.63 $ 72.76 $ 124.52 $ 266.36
EQ/Capital Guardian Research $ 21.00 $ 64.84 $ 111.27 $ 239.64
EQ/Capital Guardian U.S. Equity $ 21.00 $ 64.84 $ 111.27 $ 239.64
EQ/Emerging Markets Equity $ 29.93 $ 91.59 $ 155.75 $ 327.78
EQ/Equity 500 Index $ 16.91 $ 52.41 $ 90.31 $ 196.58
EQ/Evergreen Omega $ 21.00 $ 64.84 $ 111.27 $ 239.64
EQ/FI Mid Cap $ 21.52 $ 66.43 $ 113.93 $ 245.03
EQ/FI Small/Mid Cap Value $ 22.58 $ 69.60 $ 119.24 $ 255.75
EQ/High Yield $ 20.68 $ 63.89 $ 109.67 $ 236.38
EQ/International Equity Index $ 22.58 $ 69.60 $ 119.24 $ 255.75
EQ/J.P. Morgan Core Bond $ 19.43 $ 60.07 $ 103.25 $ 223.28
EQ/Janus Large Cap Growth $ 23.10 $ 71.18 $ 121.88 $ 261.07
EQ/Lazard Small Cap Value $ 22.58 $ 69.60 $ 119.24 $ 255.75
EQ/Marsico Focus $ 23.10 $ 71.18 $ 121.88 $ 261.07
EQ/Mercury Basic Value Equity $ 21.00 $ 64.84 $ 111.27 $ 239.64
EQ/MFS Emerging Growth Companies $ 21.21 $ 65.48 $ 112.33 $ 241.80
EQ/MFS Investors Trust $ 21.00 $ 64.84 $ 111.27 $ 239.64
EQ/MFS Research $ 21.00 $ 64.84 $ 111.27 $ 239.64
- ----------------------------------------------------------------------------------------------------
6
- -------------------------------------------------------------------------------------
IF YOU SURRENDER YOUR CONTRACT AT THE END
OF EACH PERIOD SHOWN, THE EXPENSES
WOULD BE:
---------------------------------------------------
1 YEAR 3 YEARS 5 YEARS 10 YEARS
- -------------------------------------------------------------------------------------
EQ/Putnam Growth & Income Value $ 82.74 $ 130.22 $ 168.95 $ 239.64
EQ/Putnam International Equity $ 85.70 $ 139.11 $ 183.96 $ 271.62
EQ/Putnam Voyager $ 82.74 $ 130.22 $ 168.95 $ 239.64
EQ/Small Company Index $ 81.75 $ 127.24 $ 163.91 $ 228.76
- -------------------------------------------------------------------------------------
If you do not surrender your contract at
the end of each period shown, the
expenses would be:
---------------------------------------------------
1 year 3 years 5 years 10 years
- -------------------------------------------------------------------------------------
EQ/Putnam Growth & Income Value $ 21.00 $ 64.84 $ 111.27 $ 239.64
EQ/Putnam International Equity $ 24.15 $ 74.34 $ 127.16 $ 271.62
EQ/Putnam Voyager $ 21.00 $ 64.84 $ 111.27 $ 239.64
EQ/Small Company Index $ 19.95 $ 61.67 $ 105.93 $ 228.76
(1) The amount accumulated from the $1,000 contribution could not be paid in the
form of an annuity at the end of any of the periods shown in the examples.
This is because if the amount applied to purchase an annuity payout option
is less than $2,000, or the initial payment is less than $20, we may pay the
amount in a single sum instead of as payments under an annuity payout
option. See "Accessing your money" in the Prospectus.
IF A PARTICIPANT ELECTS A VARIABLE ANNUITY PAYOUT OPTION:
Assuming an annuity payout option could be issued (see note (1) above), and a
participant elects a variable annuity payout option, the expenses shown in the
above example of "if a participation certificate is not surrendered" would, in
each case, be increased by $6.08 based on the average amount applied to annuity
payout options in 2001. See "Annuity administrative fee" in "Charges and
expenses" in the Prospectus.
CONDENSED FINANCIAL INFORMATION
Please see the Appendix at the end of this supplement for the unit values and
number of units outstanding as of the period shown for each of the variable
investment options, available as of December 31, 2001.
4. THE FOLLOWING INFORMATION IS ADDED TO THE CHART IN THE SECTION ENTITLED "HOW
YOU CAN PURCHASE AND CONTRIBUTE TO YOUR CONTRACT" IN "CONTRACT FEATURES AND
BENEFITS" IN THE PROSPECTUS AT PAGE 21:
- --------------------------------------------------------------------------------
Contract type Source of contributions
- --------------------------------------------------------------------------------
EQUI-VEST(R) o Employer Contributions: Contributions made by the
Vantage(SM) Employer under the Plan, other than those
described in the items below.
o Employer Matching Contributions: Employer Contributions
matching Salary Reduction Contributions under the terms of
the Plan.
o Qualified Non-Elective and Qualified Matching Contributions:
Contributions made by the Employer to meet the requirements
of the nondiscrimination tests set forth in the Code.
o Salary Reduction Contributions (Elective Deferral
Contributions): Contributions under a salary reduction
agreement that an employee enters into with the Employer
under the Plan.
o Rollover Contributions: Contributions of eligible rollover
distributions directly or indirectly from another eligible
retirement arrangement.
o After Tax Contributions: Amounts reported by the Employer as
having after-tax consequences under the Code.
o Direct Transfer Contributions: Amounts directly transferred
from another 403(b) arrangement pursuant to Revenue Ruling
90-24.
o Additional "catch-up" contributions.
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Contract type Limitations on contributions
- --------------------------------------------------------------------------------
EQUI-VEST(R) o For 2002, maximum amount of employer and employee
Vantage(SM) contributions is generally the lesser of $40,000 or
100% of compensation, with maximum salary
reduction contribution of $11,000.
o Rollover or direct transfer contributions after age 701/2
must be net of required minimum distributions.
o Aggregate direct rollover and direct transfer contributions
must meet Equitable Life`s anticipated minimum contribution
requirements or meet minimum plan participation requirements.
o If your employer`s plan permits, additional salary reduction
catch-up contributions totalling up to $1,000 can be made
where you are at least age 50 at any time during 2002.
o Different sources of contributions and earnings may be
subject to withdrawal restrictions.
o We currently do not accept rollovers of after tax funds
except as direct rollovers from 403(b) plans (we separately
account for these rollover contributions).
- --------------------------------------------------------------------------------
5. THE LAST SENTENCE OF THE SECOND PARAGRAPH FOLLOWING THE CHART UNDER "HOW YOU
CAN PURCHASE AND CONTRIBUTE TO YOUR CONTRACT" IN "CONTRACT FEATURES AND
BENEFITS" IN THE PROSPECTUS AT PAGE 22 IS REPLACED IN ITS ENTIRETY BY THE
FOLLOWING:
We may also refuse to accept any contribution if the sum of all contributions
under all Equitable Life accumulation annuities in which a participant has an
interest would then total more than $2,500,000.
7
6. THE FIRST PARAGRAPH UNDER "OWNER AND ANNUITANT REQUIREMENTS" IN "CONTRACT
FEATURES AND BENEFITS" IN THE PROSPECTUS AT PAGE 22 IS REPLACED IN ITS
ENTIRETY BY THE FOLLOWING:
For the following employer-funded programs, the employee must be the owner and
the annuitant on the contract: SEP-IRA, SARSEP-IRA, SIMPLE-IRA, TSA, University
TSA (other than EQUI-VEST(R) Vantage(SM) contracts) and Annuitant HR-10.
7. THE FOLLOWING IS ADDED AS A NEW SECTION AFTER "DEATH BENEFIT" IN "CONTRACT
FEATURES AND BENEFITS" AT PAGE 28 IN THE PROSPECTUS:
EQUI-VEST(R) VANTAGESM DEATH BENEFIT
The Equi-Vest(R) Vantage(SM) contract provides a Death Benefit. If you do not
elect the enhanced death benefit described below, the death benefit is equal to
the account value attributable to your participation under the contract as of
the date we receive satisfactory proof of death, any required instructions for
the method of payment, information and forms necessary to effect payment, less
any outstanding loan or the minimum death benefit, whichever provides the
highest amount. The minimum death benefit is equal to your total contributions,
less withdrawals and any withdrawal charges, any taxes that apply and less any
outstanding loan balances plus accrued interest.
If you elect the enhanced death benefit, the death benefit is equal to the
account value attributable to your participation under the contract as of the
date we receive satisfactory proof of the annuitant`s death, any required
instructions for the method of payment, information and forms necessary to
effect payment, less any outstanding loan or the enhanced death benefit on the
date of the annuitant`s death, less any subsequent withdrawals, withdrawal
charges and taxes that apply, less any outstanding loan whichever provides the
highest amount. You should note that in certain circumstances, where you have
made withdrawals, the minimum death benefit will provide a higher benefit than
the enhanced death benefit.
EQUI-VEST(R) VANTAGESM OPTIONAL ENHANCED DEATH BENEFIT
For an additional fee you may elect the enhanced death benefit.
On the participation date, your enhanced death benefit equals your initial
contribution. Then, on each third participation date anniversary until the
annuitant is age 85, we will determine your enhanced death benefit by comparing
your current enhanced death benefit to your account value on that third contract
date anniversary. If your account value is higher than your enhanced death
benefit, we will increase your enhanced death benefit to equal your account
value. On the other hand, if your account value on any third contract date
anniversary is less than your enhanced death benefit, we will not adjust your
enhanced death benefit either up or down.
If you make additional contributions, we will increase your current enhanced
death benefit by the dollar amount of the contribution on the date the
contribution is allocated to your investment options. If you take a withdrawal
from the account value attributable to your participation under the contract we
will adjust your death benefit on the date you take the withdrawal.
HOW WITHDRAWALS AFFECT THE MINIMUM DEATH BENEFIT AND THE ENHANCED DEATH BENEFIT
Each withdrawal you make will reduce the amount of your current minimum death
benefit or enhanced death benefit on a pro rata basis. Reduction on a pro rata
basis means that we calculate the percentage of your current account value that
is being withdrawn and we reduce your current minimum death benefit or enhanced
death benefit by that same percentage. For example, if your account value is
$30,000 and you withdraw $12,000, you have withdrawn 40% of your account value.
If your enhanced death benefit was $40,000 before the withdrawal, it would be
reduced by $16,000 ($40,000 x .40) and your new enhanced death benefit after the
withdrawal would be $24,000 ($40,000-$16,000).
You may elect the enhanced death benefit only at the time you apply to
participate under the EQUI-VEST (R) Vantage(SM) contract. Additionally, to elect
this benefit, the annuitant must have been less than age 80 when participation
under the contract begins. Once you elect this benefit, you may not cancel it as
long as you continue participation in the contract, and the minimum death
benefit described in your participation certificate no longer applies.
8. THE FOLLOWING IS ADDED AT THE END OF THE FIRST PARAGRAPH UNDER "WITHDRAWING
YOUR ACCOUNT VALUE" IN "ACCESSING YOUR MONEY" IN THE PROSPECTUS AT PAGE 32:
Except as set forth in the following sentence, EQUI-VEST(R) Vantage(SM)
participants may only withdraw amounts from their participant account values
that are 100% vested. A participant may, however, transfer any non-vested
account value attributable to such participant under the contract to another
annuity contract, employer designated funding vehicle or other funding vehicle
permitted by the employer and permitted under the tax law. Any participant
withdrawal requests require contract holder approval. In addition, in many
instances when a participant is under age 591/2,the participant`s ability to
withdraw funds from an EQUI-VEST(R) Vantage(SM) contract may be limited by the
plan and section 403(b) of the Code. For example, amounts attributable to salary
reduction contributions may not be withdrawn unless due to a participant`s
death, disability, severance from employment with the employer who provided the
funds. Also, a participant may be able to withdraw salary reduction
contributions only (that is, no earnings) on account of hardship under federal
income tax rules.
8
9. THE FOLLOWING IS ADDED AS A NEW SECTION FOLLOWING "WITHDRAWING YOUR ACCOUNT
VALUE" IN "ACCESSING YOUR MONEY" IN THE PROSPECTUS AT PAGE 32:
FORFEITURES
A plan may have a vesting schedule applicable to some or all employer
contributions. Forfeitures can arise when a participant who is not fully vested
under a plan separates from service. Participants should consult the plan
administrator to learn more about the vesting schedule. When a forfeiture
occurs, we will withdraw any unvested portion of a participant`s cash value and
deposit such amount in a forfeiture account. The plan administrator must tell us
the unvested balance. We allocate amounts in the forfeiture account to the
guaranteed interest option, unless otherwise agreed to by the contract holder
and us.
Forfeited account values may be reallocated to active plan participants in
accordance with the terms of the plan. Special rules apply to how the withdrawal
charge will apply when forfeitures have occurred. See "Withdrawal Charge for
EQUI-VEST(R) Vantage(SM) contracts" under "Charges and expenses" in the
Prospectus Supplement.
10. THE FOLLOWING IS ADDED AS THE LAST SENTENCE OF THE FIRST PARAGRAPH UNDER
"LOANS UNDER TSA AND CORPORATE TRUSTEED CONTRACTS" IN "ACCESSING YOUR MONEY"
IN THE PROSPECTUS AT PAGE 33:
Any participant loan requests require contract holder approval.
11. THE FOLLOWING IS ADDED AFTER THE SECTION ENTITLED "TERMINATION" IN
"ACCESSING YOUR MONEY" IN THE PROSPECTUS AT PAGE 33:
EQUI-VEST(R) VANTAGESM TERMINATION OF PARTICIPATION
We may terminate the participant`s participation under the Equi-Vest(R)
Vantage(SM) contract and pay that participant the account value attributable to
his or her participation under the contract if:
(1) the account value attributable to a participant under the contract is less
than $500 and that participant has not made contributions under the contract
for a period of three years;
(2) a participant requests a partial withdrawal that reduces the account value
attributable to a participant under the contract to an amount of less than
$500;
(3) a participant has not made any contributions under the contract within 120
days from his or her participation date; or
(4) the plan is no longer qualified under Section 403(b) of the Code and the
EQUI-VEST(R) Vantage(SM) contract is terminated by us.
We will deduct the amount of any outstanding loan balance (including any
applicable withdrawal charge), any applicable market value adjustment on amounts
allocated to the fixed maturity options and any applicable withdrawal charge
from the account value when we terminate a participant`s participation under the
contract.
The contract holder may discontinue an EQUI-VEST(R) Vantage(SM) contract.
Discontinuance of a contract means that the contract holder will not permit any
further salary deferral or employer contributions to be made under the contract.
If an EQUI-VEST(R) Vantage(SM) contract is discontinued the contract holder may
withdraw any cash value in the forfeiture account, as well as any portion of the
account value attributable to a participant that is not vested and: (i) transfer
or directly roll over such amounts to another employer-designated funding
vehicle; or (ii) transfer, distribute or directly roll over such amounts in any
other manner permitted under section 403(b) of the Code. If an EQUI-VEST(R)
Vantage(SM) contract is discontinued, the participant may withdraw any portion
of the account value attributable to the participant under the contract that is
vested and: (i) transfer or directly roll over such amounts to the
employer-designated funding vehicle or permit the contract holder to do so; (ii)
directly transfer such amounts to another contract or custodial arrangement that
meets the requirements of Section 403(b)(1) or Section 403(b)(7) of the Internal
Revenue Code respectively; (iii) directly roll over such amounts to another
eligible retirement plan (iv) retain such amounts, if permitted under federal
tax law; or (v) maintain such account value with us. If the account value
remains with us, such amounts will continue to be subject to withdrawal charges
based upon the contract holder`s original withdrawal charge schedule.
An EQUI-VEST(R) Vantage(SM) contract may be terminated only after all
participation under the contract is terminated.
9
12. THE FOLLOWING IS ADDED AFTER THE INFORMATION UNDER "FOR ALL SERIES ISSUED IN
NEW YORK -- FIXED MATURITY OPTIONS" IN "CHARGES AND EXPENSES" IN THE
PROSPECTUS AT PAGE 39:
CHARGES UNDER EQUI-VEST(R) VANTAGE(SM) CONTRACTS
CHARGE AGAINST THE SEPARATE ACCOUNT
We deduct this charge against the assets in the separate account to compensate
us for mortality and expense risks, as well as administrative and financial
accounting expenses under the contract. The charge is deducted daily at an
annual rate that can vary by group between 0% to 0.90% of daily net assets
attributable to all under the group contract. Differences in this charge are due
to variations in group characteristics which may include:
o the factors on which the mortality and expense risks charge and
administration charges are based,
o the extent to which certain administrative functions in connection with the
TSA contracts are to be performed by us or by the contract holder,
o the total amount of Plan assets
The mortality risk we assume is the risk that annuitants as a group will live
for a longer time than our actuarial tables predict. If that happens, we would
be paying more in annuity benefits than we planned. We assume a mortality risk
to the extent that at the time of death, the guaranteed death benefit exceeds
the cash value of the contract. The expense risk we assume is the risk that it
will cost us more to issue and administer the contracts than we expect. To the
extent that the mortality and expense risk charges are not needed to cover the
actual expenses incurred, they may be considered an indirect reimbursement for
certain sales and promotional expenses relating to the contracts. A
participant`s participation certificate will set forth the applicable separate
account charge.
We will determine the separate account charge pursuant to our established
actuarial procedures, and will not discriminate unreasonably or unfairly against
participants under any EQUI-VEST(R) Vantage(SM) contracts.
CHARGE FOR THIRD-PARTY TRANSFER OR ROLLOVER
We deduct a charge for third-party transfer (such as in the case of (i) a direct
transfer of the account value to another employer-designated funding vehicle or
(ii) a transfer or direct rollover to another contract or custodial arrangement
that meets the requirements of Section 403(b)(1) or Section 403(b)(7) of the
Internal Revenue Code respectively or (iii) a direct rollover to another
eligible retirement plan. This charge is currently $25 ($65 maximum) per
occurrence per participant. In addition, this charge will be imposed on each
third-party transfer out of the contract`s forfeiture account into another
eligible funding vehicle. This charge does not apply to reallocations from the
forfeiture account to participant annuity accounts under the contract.
CHARGE FOR OPTIONAL ENHANCED DEATH BENEFIT
If a participant elects the optional enhanced death benefit we deduct a charge
annually from the account value attributable to such participant on each
participation date until the participant is age 85. The charge is equal to 0.15%
of the account value attributable to the participant on the participation date
anniversary.
We deduct this charge pro rata from the variable investment options and the
Guaranteed Interest Option. If these amounts are insufficient we will make up
the required amounts from the Fixed Maturity Option in order of the earliest
maturity date(s) first to the extent you have values in those options.
WITHDRAWAL CHARGE FOR EQUI-VEST(R) VANTAGE(SM) CONTRACTS
A withdrawal charge will apply during either the first 5 contract years or the
first 5 participation years, as set forth in the contract and participation
certificate. Differences in the period for which and circumstances under which
this charge applies are due to variations in group characteristics including the
total amount of Plan assets. We will determine the period of and circumstances
under which the withdrawal charge applies pursuant to our established
procedures, and will not discriminate unreasonably or unfairly against
participants under any EQUI-VEST(R) Vantage(SM) contracts.
If you participate in a contract where the withdrawal is on a contract year
basis, rather than a participant year basis, a withdrawal charge will apply to
amounts withdrawn from the contract during the first 5 contract years only if:
(i) a participant transfers or directly rolls over any account value
attributable to the participant under the contract to another annuity contract,
employer designated funding vehicle or other funding vehicle permitted under the
tax law; or (ii) the contract holder withdraws amounts from the contract and
transfers or directly rolls over amounts to another 403(b) employer-designated
funding vehicle or transfers or distributes amounts in any other manner
permitted under section 403(b) of the Code during the withdrawal charge period.
10
If you participate in a contract where the withdrawal is on a participant year
basis, rather than a contract year basis, a withdrawal charge will apply except
when:
(1) The participant withdraws no more than 10% of the vested account value each
participation year attributable to that participant under the contract.
(2) The participant has reached age 55 and retired or has severed from
employment with the employer.
(3) The withdrawal is made to satisfy minimum distribution requirements.
(4) The participant elects a withdrawal that qualifies as a hardship withdrawal
under the Code.
(5) The participant dies and a death benefit is payable to the Beneficiary.
(6) The withdrawal is made to provide an annuity from Equitable requested by the
Employer.
(7) The participant has qualified to receive Social Security disability benefits
as certified by the Social Security Administration or the participant is
totally disabled. Total disability is the participant's incapacity,
resulting from injury or disease, to engage in any occupation for
remuneration or profit. Such total disability must be certified as having
been continuous for a period of at least six months prior to notice of claim
and the participant must continue to be deemed totally disabled.
Written notice of claim must be given to us during the participant`s
lifetime and during the period of total disability prior to each withdrawal.
Along with the Notice of Claim, the participant must submit acceptable proof
of disability. Such proof of disability must be either (a) evidence of
Social Security disability determination or (b) a statement from an
independent U.S. licensed physician stating that the participant meets the
definition of total disability as stated above. Such certification must be
resubmitted every 12 months. Failure to furnish proof of disability within
the required time will not reduce any claim if it was not reasonably
possible to give proof within such time. Provided such proof is furnished as
soon as reasonably possible and in no event, except in the absence of legal
capacity, later than one year from the time proof is otherwise required.
(8) We receive proof satisfactory to us that the participant`s life expectancy
is six months or less (such proof must include, but is not limited to,
certification by a licensed physician).
(9) The participant is confined to a nursing home for more than 90 days (or such
other period, as required in your state) as verified by a licensed
physician. A nursing home for this purpose means one that is (a) approved by
Medicare as a provider of skilled nursing care service, or (b) licensed as a
skilled nursing home by the state or territory in which it is located (it
must be within the United States, Puerto Rico, U.S. Virgin Islands, or Guam)
and meets all of the following:
-- its main function is to provide skilled, intermediate, or custodial
nursing care;
-- it provides continuous room and board to three or more persons;
-- it is supervised by a registered nurse or licensed practical nurse;
-- it keeps daily medical records of each patient;
-- it controls and records all medications dispensed; and
-- its primary service is other than to provide housing for residents.
The withdrawal charge will apply if the condition as described in items 7
through 9 above existed at the time participation under the contract began or if
the condition began within the 12 month period following the such participation.
In instances where a withdrawal charge applies, other than where the
participant`s participation under the contract is terminated, in order to give a
participant the exact dollar amount of the withdrawal requested, we deduct the
amount of the withdrawal and the amount of the withdrawal charges from the
account value attributable to a participant under the contract. Any amount
deducted to pay withdrawal charges is also subject to a withdrawal charge. We
deduct the amount of the withdrawal and the withdrawal charge pro rata from the
variable investment options and from the guaranteed investment option. If these
amounts are insufficient we will make up the required amounts from the fixed
maturity options in order of the earliest maturity date(s). If we make up the
required amounts from the fixed maturity options, a market value adjustment will
apply. In the case a participant terminates participation under the contract, we
will pay the account value attributable to the participant under the contract
after the withdrawal charge has been imposed (cash value).
The withdrawal charge is equal to 6% of the amount withdrawn (or the defaulted
loan amount, if applicable) from the account value attributable to a participant
under the contract during the first four contract or participation years, as
applicable and 5% of the amount withdrawn (or the defaulted loan amount) from
the account value attributable to a participant under the contract during the
fifth contract or participation year, as applicable. The total of all withdrawal
charges will never exceed 8% of all contributions made by the participant during
the first five contract or participation years, as applicable, that are
permitted to be withdrawn.
11
FORFEITED ANNUITY ACCOUNT VALUE. If a portion of a participant`s annuity account
value is forfeited under the terms of the plan, a withdrawal charge will be
assessed only against the vested contribution amounts. If the contract holder
withdraws the forfeited amount from the contract, a withdrawal charge, if
applicable, will be imposed at that time.
13. THE FIRST BULLET UNDER "CONTRIBUTIONS TO TSAS" IN "TAX INFORMATION" UNDER
"TAX-SHELTERED ANNUITY ARRANGEMENTS (TSAS)" IN THE PROSPECTUS AT PAGE 44 IS
REPLACED IN ITS ENTIRETY BY THE FOLLOWING:
o Annual contributions made through the employer`s payroll, which may include
a participant`s salary reduction contributions and employer contributions.
Some employer contributions may be subject to forfeiture under an employer`s
plan.
14. THE FOLLOWING IS ADDED TO END OF THE FIRST BULLET UNDER "ANNUAL
CONTRIBUTIONS" IN "TAX INFORMATION" UNDER "TAX-SHELTERED ANNUITY
ARRANGEMENTS (TSAS)" IN THE PROSPECTUS AT PAGE 45:
Employer contributions subject to forfeiture are not taken into account until
vested for this formula. Therefore, previously contributed funds may affect the
amount available to be contributed under this formula.
15. THE FOLLOWING IS ADDED TO THE END OF THE SECOND BULLET UNDER "ANNUAL
CONTRIBUTIONS" IN "TAX INFORMATION" UNDER "TAX-SHELTERED ANNUITY
ARRANGEMENTS (TSAS)" IN THE PROSPECTUS AT PAGE 45:
Employer contributions subject to forfeiture are taken into account under this
formula.
16. THE FOLLOWING IS ADDED AT THE END OF THE FIRST PARAGRAPH UNDER
"DISTRIBUTIONS FROM QUALIFIED PLANS AND TSAS -- WITHDRAWAL RESTRICTIONS" IN
"TAX INFORMATION" UNDER "DISTRIBUTIONS FROM QUALIFIED PLANS AND TSAS" IN THE
PROSPECTUS AT PAGE 46:
The plan may also impose withdrawal restrictions on employer contributions and
related earnings.
17. THE SECOND PARAGRAPH UNDER "DISTRIBUTIONS FROM QUALIFIED PLANS AND TSAS --
WITHDRAWAL RESTRICTIONS" IN "TAX INFORMATION" UNDER "DISTRIBUTIONS FROM
QUALIFIED PLANS AND TSAS" IN THE PROSPECTUS AT PAGE 46 IS REPLACED IN ITS
ENTIRETY BY THE FOLLOWING:
For amounts that were directly transferred to this contract in a Revenue Ruling
90-24 transfer from another annuity contract, these withdrawal restrictions will
not apply to 403(b) account values attributable to salary reduction
contributions to the contract and earnings on December 31, 1988 or to account
values attributable to employer contributions if properly reported to us at the
time of the transfer.
18. INVESTMENT PERFORMANCE. Page 64 of the Prospectus describes certain
measurements of investment performance of the variable investment options and/or
the portfolios in which they invest. The table following that discussion may be
of general interest. Since charges under the EQUI-VEST(R) Vantage(SM) contract,
as well as the series of contracts described in the Prospectus, vary, the tables
on page 64 of the Prospectus assume for the highest charges that might apply.
The maximum charges that might apply under the EQUI-VEST(R) Vantage(SM) contract
(including the charge for the optional enhanced death benefit) are lower than
the charges used in computing the investment performance in the Prospectus
table.
12
Appendix I: Condensed financial information
- --------------------------------------------------------------------------------
The following tables show the accumulation unit values and the number of
outstanding units for each variable investment option under each contract series
at the last business day of the periods shown. The unit values and number of
units outstanding are for contracts offered under Separate Account A with the
same asset based charge of 0.90%. The information presented is shown for the
past ten years, or from the first year the particular contracts were offered if
less than ten years ago.
EQUIVEST VANTAGE CONTRACTS UNIT VALUES AND NUMBER OF UNITS OUTSTANDING FOR EACH
VARIABLE INVESTMENT OPTION, EXCEPT FOR THOSE OPTIONS OFFERED FOR THE FIRST TIME
ON OR AFTER DECEMBER 31, 2001.
- ----------------------------------------------------------------------------------------------------
For the years ending December 31,
1999 2000 2001
- ----------------------------------------------------------------------------------------------------
EQ/AGGRESSIVE STOCK
Unit value $ 106.50 $ 91.46 $ 67.82
Number of units outstanding (000's) 127 126 35
EQ/ALLIANCE COMMON STOCK
Unit value $ 130.14 $ 110.60 $ 97.85
Number of units outstanding (000's) 233 224 54
EQ/ALLIANCE GLOBAL
Unit value $ 139.76 $ 112.39 $ 88.80
Number of units outstanding (000's) 13 15 5
EQ/ALLIANCE GROWTH AND INCOME
Unit value $ 122.29 $ 131.71 $ 128.51
Number of units outstanding (000's) 14 16 5
EQ/ALLIANCE GROWTH INVESTORS
Unit value $ 129.93 $ 119.83 $ 103.75
Number of units outstanding (000's) 18 22 2
EQ/ALLIANCE INTERMEDIATE GOVERNMENT SECURITIES
Unit value $ 102.33 $ 110.43 $ 118.06
Number of units outstanding (000's) 3 3 --
EQ/ALLIANCE INTERNATIONAL
Unit value $ 131.34 $ 100.03 $ 76.02
Number of units outstanding (000's) 4 4 1
EQ/ALLIANCE MONEY MARKET
Unit value $ 105.79 $ 111.13 $ 114.06
Number of units outstanding (000's) 1 3 1
EQ/ALLIANCE PREMIER GROWTH
Unit value $ 116.55 $ 94.27 $ 70.28
Number of units outstanding (000's) 1 6 --
EQ/ALLIANCE QUALITY BOND
Unit value $ 100.33 $ 110.65 $ 118.44
Number of units outstanding (000's) 2 2 1
EQ/ALLIANCE SMALL CAP GROWTH
Unit value $ 110.37 $ 124.31 $ 106.88
Number of units outstanding (000's) 5 12 2
EQ/ALLIANCE TECHNOLOGY
Unit value -- $ 66.31 $ 49.65
Number of units outstanding (000's) -- 5 2
EQ/AXP NEW DIMENSIONS
Unit value -- $ 82.99 $ 69.48
Number of units outstanding (000's) -- -- --
EQ/AXP STRATEGY AGGRESSIVE
Unit value -- $ 62.21 $ 41.02
Number of units outstanding (000's) -- -- --
EQ/BALANCED
Unit value $ 121.00 $ 118.02 $ 114.50
Number of units outstanding (000's) 65 66 22
- ----------------------------------------------------------------------------------------------------
A-1
EQUIVEST VANTAGE CONTRACTS (CONTINUED) UNIT VALUES AND NUMBER OF UNITS
OUTSTANDING FOR EACH VARIABLE INVESTMENT OPTION, EXCEPT FOR THOSE OPTIONS
OFFERED FOR THE FIRST TIME ON OR AFTER DECEMBER 31, 2001.
- ----------------------------------------------------------------------------------------------------
For the years ending December 31,
1999 2000 2001
- ----------------------------------------------------------------------------------------------------
EQ/BERNSTEIN DIVERSIFIED VALUE
Unit value -- -- $ 95.39
Number of units outstanding (000's) -- -- 1
EQ/CALVERT SOCIALLY RESPONSIBLE
Unit value $ 107.76 $ 103.69 $ 87.65
Number of units outstanding (000's) -- -- --
EQ/CAPITAL GUARDIAN RESEARCH
Unit value $ 106.96 $ 112.26 $ 109.00
Number of units outstanding (000's) -- -- --
EQ/CAPITAL GUARDIAN U.S. EQUITY
Unit value $ 101.79 $ 104.51 $ 101.25
Number of units outstanding (000's) -- -- --
EQ/EMERGING MARKETS EQUITY
Unit value $ 198.84 $ 118.14 $ 111.05
Number of units outstanding (000's) 2 2 --
EQ/EQUITY 500 INDEX
Unit value $ 125.64 $ 112.30 $ 97.75
Number of units outstanding (000's) 53 55 7
EQ/EVERGREEN OMEGA
Unit value $ 106.75 $ 93.40 $ 76.81
Number of units outstanding (000's) -- -- --
EQ/FI MID CAP
Unit value -- $ 100.13 $ 85.92
Number of units outstanding (000's) -- -- --
EQ/FI SMALL/MID CAP VALUE
Unit value $ 103.94 $ 108.31 $ 111.62
Number of units outstanding (000's) 3 3 1
EQ/HIGH YIELD
Unit value $ 85.66 $ 77.34 $ 77.17
Number of units outstanding (000's) 5 5 1
EQ/JANUS LARGE CAP GROWTH
Unit value -- $ 84.07 $ 64.18
Number of units outstanding (000's) -- -- --
EQ/MARSICO FOCUS
Unit value -- -- $ 105.94
Number of units outstanding (000's) -- -- --
EQ/MERCURY BASIC VALUE EQUITY
Unit value $ 113.77 $ 126.07 $ 131.84
Number of units outstanding (000's) 1 2 1
EQ/MFS EMERGING GROWTH COMPANIES
Unit value $ 166.37 $ 133.82 $ 87.46
Number of units outstanding (000's) 7 17 3
EQ/MFS INVESTORS TRUST
Unit value $ 104.65 $ 102.99 $ 85.75
Number of units outstanding (000's) -- -- --
EQ/MFS RESEARCH
Unit value $ 123.09 $ 115.57 $ 89.54
Number of units outstanding (000's) 4 6 1
EQ/PUTNAM GROWTH & INCOME VALUE
Unit value $ 98.44 $ 104.17 $ 96.20
Number of units outstanding (000's) 2 2 --
EQ/T. ROWE PRICE INTERNATIONAL STOCK
Unit value $ 134.15 $ 108.11 $ 83.75
Number of units outstanding (000's) 2 4 --
- ----------------------------------------------------------------------------------------------------
A-2
EQUI-VEST(R)
Supplement dated May 1, 2002
to EQUI-VEST(R) Employer-Sponsored
Retirement Programs
SUPPLEMENT PROSPECTUS DATED MAY 1, 2002
EQUI-VEST(R) TSA contracts (Series 100) offered to Employees of certain
non-profit organizations within the State of Oregon
THE EQUITABLE LIFE ASSURANCE SOCIETY
OF THE UNITED STATES
1290 AVENUE OF THE AMERICAS
NEW YORK, NEW YORK 10104
- --------------------------------------------------------------------------------
This Supplement adds to and modifies certain information contained in the
Prospectus or Supplement to Prospectus dated May 1, 2002 ("Prospectus") for the
EQUI-VEST(R) Employer-Sponsored Retirement Programs deferred variable annuity
contracts issued by The Equitable Life Assurance Society of the United States
("Equitable Life").
We will offer the EQUI-VEST(R) series 100 contracts, as described below
("Modified Oregon TSA Contracts"), to fund plans that meet the requirements of
Internal Revenue Code Section 403(b) ("Section 403(b) plans") sponsored by
certain Section 501(c)(3) non-profit organizations, within the State of Oregon
("employer"). Modified Oregon TSA Contracts will be available only when an
employer (i) makes contributions to a Section 403(b) plan; (ii) has entered into
an agreement with us that permits us to offer Modified Oregon TSA Contracts as a
funding vehicle for its 403(b) plan; and (iii) has at least $10 million in
existing assets to fund Modified Oregon TSA Contracts in its 403(b) plan.
This Supplement describes the material differences between the series 100
contracts described in the Prospectus and the Modified Oregon TSA Contracts.
Certain of the modifications relate to the separate account asset-based charges
for the variable investment options under Modified Oregon TSA Contracts. These
charges are lowered from a maximum of 1.49% on certain variable investment
options to 0.90% on all variable investment options. The Class IB/B shares of EQ
Advisors Trust and AXA Premier VIP Trust (the "Trusts") available under Modified
Oregon TSA Contract include 12b-1 fees among their charges. The series 100
contracts described in the Prospectus include Class IA/A shares, which are not
subject to 12b-1 fees and are not offered under Modified Oregon TSA Contracts.
This Supplement should be read together with the Prospectus. For purposes of
this Supplement, the term "annuitant" refers to holders of current contracts
(contract number 11947CT-I and certificate number 11934T) and the Modified
Oregon TSA Contracts offered hereunder. Terms and other provisions not defined
or modified in this Supplement are the same as in the Prospectus. Modified
Oregon TSA Contracts became available on February 9, 2001.
Because you are purchasing an annuity contract as a Tax Sheltered Annuity (TSA),
you should be aware that such annuities do not provide tax deferral benefits
beyond those already provided by the Internal Revenue Code. Before purchasing
one of these annuities, you should consider whether its features and benefits
beyond tax deferral meet your needs and goals. You may also want to consider the
relative features, benefits and costs of these annuities with any other
investment that you may use in connection with your retirement plan or
arrangement. (For more information, see "Tax Information," in the Prospectus.)
THE FIRST BULLET IN "FEES AND CHARGES" UNDER "EQUI-VEST(R) EMPLOYER-SPONSORED
RETIREMENT PROGRAMS AT A GLANCE - KEY FEATURES" SECTION IN THE PROSPECTUS HAS
BEEN MODIFIED FOR OREGON TSA CONTRACTS, AS FOLLOWS:
We deduct a daily charge on amounts invested in the variable investment options
for mortality and expense risks and other expenses at an annual rate of 0.90%.
FOR USE ONLY IN THE STATE OF OREGON E3825
- ----- ------------------------------------------------------------------------
2
FEE TABLE. The following fee table is applicable to Modified Oregon TSA
Contracts. Please also see the discussion of the modifications to "Charges and
expenses" set forth later in this Supplement.
- --------------------------------------------------------------------------------
CHARGES WE DEDUCT FROM YOUR VARIABLE INVESTMENT OPTIONS EXPRESSED AS AN ANNUAL
PERCENTAGE OF DAILY NET ASSETS
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Mortality and expense risks(1) 0.65%
Other expenses(2) 0.25%
-----
Total Separate Account A annual expenses(3) 0.90%
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
CHARGES WE DEDUCT FROM YOUR ACCOUNT VALUE ON EACH CONTRACT DATE ANNIVERSARY
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Annual administrative charge
If your account value is less than $25,000 $30 or 2% of your account
on the last day of your contract year value, if less
If your account value is $25,000 or more $0
on the last day of your contract year
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
CHARGES WE DEDUCT FROM YOUR ACCOUNT VALUE AT THE TIME YOU REQUEST CERTAIN
TRANSACTIONS
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Maximum withdrawal charge(4) 6%
- --------------------------------------------------------------------------------
For EQ Advisors Trust annual expenses, see the "Fee Table" section in the
Prospectus.
THE TRUSTS' ANNUAL EXPENSES
(AS A PERCENTAGE OF AVERAGE DAILY NET ASSETS IN EACH PORTFOLIO)
- ----------------------------------------------------------------------------------------------------------------------
Other
Management expenses Net total annual
Fees (After (After expenses (After
expense 12b-1 expense expense
Portfolio Name limitation)(5) Fees(6) limitation)(7) limitation)(8)
- ----------------------------------------------------------------------------------------------------------------------
AXA PREMIER VIP TRUST:
- ----------------------------------------------------------------------------------------------------------------------
AXA Premier VIP Core Bond* 0.00% 0.25% 0.70% 0.95%
AXA Premier VIP Health Care* 0.44% 0.25% 1.16% 1.85%
AXA Premier VIP International Equity* 0.62% 0.25% 0.93% 1.80%
AXA Premier VIP Large Cap Core Equity* 0.17% 0.25% 0.93% 1.35%
AXA Premier VIP Large Cap Growth* 0.31% 0.25% 0.79% 1.35%
AXA Premier VIP Large Cap Value* 0.08% 0.25% 1.02% 1.35%
AXA Premier VIP Small/Mid Cap Growth* 0.42% 0.25% 0.93% 1.60%
AXA Premier VIP Small/Mid Cap Value* 0.20% 0.25% 1.15% 1.60%
AXA Premier VIP Technology* 0.58% 0.25% 1.02% 1.85%
- ----------------------------------------------------------------------------------------------------------------------
EQ ADVISORS TRUST:
- ----------------------------------------------------------------------------------------------------------------------
EQ/Aggressive Stock 0.61% 0.25% 0.08% 0.94%
EQ/Alliance Common Stock 0.46% 0.25% 0.07% 0.78%
EQ/Alliance Global 0.73% 0.25% 0.12% 1.10%
FOR USE ONLY IN THE STATE OF OREGON
- --------------------------------------------------------------------- --------
3
- ----------------------------------------------------------------------------------------------------------------------
Other
Management expenses Net total annual
Fees (After (After expenses (After
expense 12b-1 expense expense
Portfolio Name limitation)(5) Fees(6) limitation)(7) limitation)(8)
- ----------------------------------------------------------------------------------------------------------------------
EQ/Alliance Growth and Income 0.57% 0.25% 0.06% 0.88%
EQ/Alliance Growth Investors 0.57% 0.25% 0.06% 0.88%
EQ/Alliance Intermediate Government Securities 0.50% 0.25% 0.12% 0.87%
EQ/Alliance International 0.85% 0.25% 0.25% 1.35%
EQ/Alliance Money Market 0.33% 0.25% 0.07% 0.65%
EQ/Alliance Premier Growth 0.84% 0.25% 0.06% 1.15%
EQ/Alliance Quality Bond 0.53% 0.25% 0.07% 0.85%
EQ/Alliance Small Cap Growth 0.75% 0.25% 0.06% 1.06%
EQ/Alliance Technology 0.82% 0.25% 0.08% 1.15%
EQ/AXP New Dimensions 0.00% 0.25% 0.70% 0.95%
EQ/AXP Strategy Aggressive 0.00% 0.25% 0.75% 1.00%
EQ/Balanced 0.57% 0.25% 0.08% 0.90%
EQ/Bernstein Diversified Value 0.61% 0.25% 0.09% 0.95%
EQ/Calvert Socially Responsible 0.00% 0.25% 0.80% 1.05%
EQ/Capital Guardian International 0.66% 0.25% 0.29% 1.20%
EQ/Capital Guardian Research 0.55% 0.25% 0.15% 0.95%
EQ/Capital Guardian U.S. Equity 0.59% 0.25% 0.11% 0.95%
EQ/Emerging Markets Equity 0.87% 0.25% 0.68% 1.80%
EQ/Equity 500 Index 0.25% 0.25% 0.06% 0.56%
EQ/Evergreen Omega 0.00% 0.25% 0.70% 0.95%
EQ/FI Mid Cap 0.48% 0.25% 0.27% 1.00%
EQ/FI Small/Mid Cap Value 0.74% 0.25% 0.11% 1.10%
EQ/High Yield 0.60% 0.25% 0.07% 0.92%
EQ/International Equity Index 0.35% 0.25% 0.50% 1.10%
EQ/J.P. Morgan Core Bond 0.44% 0.25% 0.11% 0.80%
EQ/Janus Large Cap Growth 0.76% 0.25% 0.14% 1.15%
EQ/Lazard Small Cap Value 0.72% 0.25% 0.13% 1.10%
EQ/Marsico Focus* 0.00% 0.25% 0.90% 1.15%
EQ/Mercury Basic Value Equity 0.60% 0.25% 0.10% 0.95%
EQ/MFS Emerging Growth Companies 0.63% 0.25% 0.09% 0.97%
EQ/MFS Investors Trust 0.58% 0.25% 0.12% 0.95%
EQ/MFS Research 0.63% 0.25% 0.07% 0.95%
EQ/Putnam Growth & Income Value 0.57% 0.25% 0.13% 0.95%
EQ/Putnam International Equity 0.71% 0.25% 0.29% 1.25%
EQ/Putnam Voyager 0.62% 0.25% 0.08% 0.95%
EQ/Small Company Index 0.25% 0.25% 0.35% 0.85%
Notes:
* Subject to state availability.
(1) A portion of this change is for providing the death benefit.
(2) This charge is for financial accounting and other administrative services
relating to the contract.
FOR USE ONLY IN THE STATE OF OREGON
- ----- ------------------------------------------------------------------------
4
(3) Total Separate Account A charges annual expenses of the variable investment
options (not including the Trusts' fees and other expenses) are guaranteed
not to exceed a total annual rate of .90%.
(4) This charge is 6% generally declining for the first through 12 contract
years. The total of all withdrawal charges may not exceed 8% of all
withdrawn contributions that were made in the current and nine prior years.
This charge is deducted upon a withdrawal of amounts, or defaulted loan
amounts in excess of the 10% free withdrawal amount. Important exceptions
and limitations may eliminate or reduce this charge.
(5) The management fee for each portfolio cannot be increased without a vote of
that portfolio's shareholders. See footnote (8) for any expense limitation
agreement information.
(6) Portfolio shares are all subject to fees imposed under a distribution plan
(the "Rule 12b-1 Plan") adopted by the Trusts pursuant to Rule 12b-1 under
the Investment Company Act of 1940. The 12b-1 fee will not be increased for
the life of the contracts.
(7) The amounts shown as "Other Expenses" will fluctuate from year to year
depending on actual expenses. Since initial seed capital was invested for
the EQ/Marsico Focus Portfolio on August 31, 2001, "Other Expenses" shown
have been annualized. Initial seed capital was invested for the Portfolios
of the AXA Premier VIP Trust on December 31, 2001, thus "Other Expenses"
shown are estimated. See footnote (8) for any expense limitation agreement
information.
(8) Equitable Life, the Trusts' manager, has entered into expense limitation
agreements with respect to certain portfolios which are effective through
April 30, 2003. Under these agreements Equitable Life has agreed to waive or
limit its fees and assume other expenses of each of these Portfolios, if
necessary, in an amount that limits each Portfolio's Total Annual Expenses
(exclusive of interest, taxes, brokerage commissions, capitalized
expenditures, and extraordinary expenses) to not more than the amounts
specified above as "Net Total Expenses." Each Portfolio may at a later date
make a reimbursement to Equitable Life for any of the management fees waived
or limited and other expenses assumed and paid by Equitable Life pursuant to
the expense limitation agreement provided that the Portfolio's current
annual operating expenses do not exceed the operating expense limit
determined for such portfolio. For more information see the prospectuses for
each of the Trusts. The following chart indicates other expenses before any
fee waivers and/or expense reimbursements that would have applied to each
Portfolio. Portfolios that are not listed below do not have an expense
limitation arrangement in effect or the expense limitation agreement did not
result in a fee waiver or reimbursement.
FOR USE ONLY IN THE STATE OF OREGON
- --------------------------------------------------------------------- --------
5
- ------------------------------------------------------------
Other
Management expenses
Fees (before (before any
any fee fee waivers
waivers and/or and/or
expense expense
Portfolio Name reimbursements) reimbursements)
- ------------------------------------------------------------
AXA PREMIER VIP TRUST:
- ------------------------------------------------------------
AXA Premier VIP Core Bond 0.60% 0.84%
AXA Premier VIP Health Care 1.20% 1.16%
AXA Premier VIP
International Equity 1.05% 0.93%
AXA Premier VIP Large Cap
Core Equity 0.90% 0.93%
AXA Premier VIP Large Cap
Growth 0.90% 0.79%
AXA Premier VIP Large Cap
Value 0.90% 1.02%
AXA Premier VIP Small/Mid
Cap Growth 1.10% 0.93%
AXA Premier VIP Small/Mid
Cap Value 1.10% 1.15%
AXA Premier VIP Technology 1.20% 1.02%
- ------------------------------------------------------------
EQ ADVISORS TRUST:
- ------------------------------------------------------------
EQ/Alliance Premier Growth 0.90% 0.06%
EQ/Alliance Technology 0.90% 0.08%
EQ/AXP New Dimensions 0.65% 1.06%
EQ/AXP Strategy Aggressive 0.70% 0.77%
- ------------------------------------------------------------
- ------------------------------------------------------------
Other
Management expenses
Fees (before (before any
any fee fee waivers
waivers and/or and/or
expense expense
Portfolio Name reimbursements) reimbursements)
- ------------------------------------------------------------
EQ/Bernstein Diversified Value 0.65% 0.09%
EQ/Calvert Socially Responsible 0.65% 1.46%
EQ/Capital Guardian International 0.85% 0.29%
EQ/Capital Guardian Research 0.65% 0.15%
EQ/Capital Guardian U.S. Equity 0.65% 0.11%
EQ/Emerging Markets Equity 1.15% 0.68%
EQ/Evergreen Omega 0.65% 0.99%
EQ/FI Mid Cap 0.70% 0.27%
EQ/FI Small/Mid Cap Value 0.75% 0.11%
EQ/International Equity Index 0.35% 0.50%
EQ/J.P. Morgan Core Bond 0.45% 0.11%
EQ/Janus Large Cap Growth 0.90% 0.14%
EQ/Lazard Small Cap Value 0.75% 0.13%
EQ/Marsico Focus 0.90% 2.44%
EQ/MFS Investors Trust 0.60% 0.12%
EQ/MFS Research 0.65% 0.07%
EQ/Putnam Growth & Income
Value 0.60% 0.13%
EQ/Putnam International Equity 0.85% 0.29%
EQ/Putnam Voyager 0.65% 0.08%
- ------------------------------------------------------------
The prospectuses for each Trust is attached at the end of the Prospectus.
THE SECTION ENTITLED "CHARGES UNDER THE CONTRACTS" UNDER "CHARGES AND EXPENSES"
SECTION IN THE PROSPECTUS HAS BEEN MODIFIED AS FOLLOWS:
MORTALITY AND EXPENSE RISKS CHARGE. The following information replaces the first
paragraph of this section.
We deduct a daily charge from the net assets in each variable investment option
to compensate us for mortality and expense risks, including the minimum death
benefit. The daily charge is equivalent to an annual rate of 0.65% of the net
assets in each of the variable investment options.
CHARGE FOR OTHER EXPENSES. The following information replaces this section in
its entirety:
We deduct this daily charge from the net assets in each variable investment
option. The daily charge is equivalent to an annual rate of 0.25% of the net
assets in each variable investment option. The charge is to reimburse us for the
cost of financial accounting services we provide under the contracts.
WITHDRAWAL CHARGE FOR SERIES 100 CONTRACTS. In addition to the exceptions to the
withdrawal charges applicable to TSA contracts discussed under "For SEP, SARSEP,
SIMPLE IRA, TSA, EDC and Annuitant-Owned HR-10 contracts" in the
FOR USE ONLY IN THE STATE OF OREGON
- ----- ------------------------------------------------------------------------
6
above-noted section in the Prospectus, the following will apply under Modified
Oregon TSA Contracts:
o the annuitant retires pursuant to the terms of the Plan or separates from
service;
o the annuitant has been diagnosed and certified in writing, by each of a
United States licensed attending physician and independent physician, to be
unable to engage in any substantial gainful activity by reason of any
medically determined physical or mental impairment which can be expected to
result in death or which has lasted or can be expected to last a continuous
period of not less than 12 months; or in the case of an individual who has
turned age 55 and is blind, inability by reason of blindness, to engage in
substantial gainful activity requiring skills, or abilities comparable to
those of any gainful activity in which he has previously engaged with some
regularity and over a substantial period of time. The term "blindness" shall
mean the central visual keenness of 20/200 or less in the better eye with
use of a correcting lens. An eye which is accompanied by a limitation in the
fields of vision, such that the wider diameter of the visual field beneath
an angle no greater than 20 degrees, shall be considered for purposes of
this paragraph as having a central visual keenness of 20/200 or less; or
o we receive proof satisfactory to us that the annuitant's life expectancy is
six months or less (this proof must include certification by a licensed
physician in the United States); or
o the annuitant elects a withdrawal that qualifies as a hardship withdrawal
under federal income tax rules. A hardship withdrawal is a distribution that
is made on account of an immediate and heavy financial need of the annuitant
and the distribution is not in excess of the amount necessary to satisfy
such financial need; or
o the annuitant has been confined to a nursing home for more than a 90 day
period (or such other period, if required in your state) as verified by a
physician licensed in the United States. A nursing home for this purpose
means one that is (a) approved by Medicare as a provider of skilled nursing
care service, or (b) licensed as a skilled nursing home by the state or
territory in which it is located. It must be within the United States,
Puerto Rico, U.S. Virgin Islands, or Guam and meets all of the following:
o its main function is to provide skilled, intermediate or custodial
nursing care;
o it provides continuous room and board to three or more persons;
o it is supervised by a registered nurse or a practical nurse;
o it keeps daily medical records of each patient;
o it controls and records all medications dispensed; and
o its primary service is other than to provide housing for residents.
FOR USE ONLY IN THE STATE OF OREGON
- ------------------------------------------------------------------- --------
7
CONDENSED FINANCIAL INFORMATION
The unit values and number of units outstanding shown below, as of December
31,2001, are for contracts offered under Separate Account A with the same asset
based charge of 0.90%
EQUI-VEST(R) MODIFIED OREGON TSA CONTRACTS
UNIT VALUES AND NUMBER OF UNITS OUTSTANDING FOR EACH VARIABLE INVESTMENT OPTION,
EXCEPT FOR THOSE OPTIONS OFFERED FOR THE FIRST TIME ON OR AFTER DECEMBER 31,
2001.
FOR THE YEARS ENDING DECEMBER 31,
----------------------------------------------------
----------------------------------------------------
1999 2000 2001
- --------------------------------------------------------------------------------------------------
EQ/AGGRESSIVE STOCK
- --------------------------------------------------------------------------------------------------
Unit value $106.50 $ 91.46 $ 67.82
- --------------------------------------------------------------------------------------------------
Number of units outstanding (000's) 127 126 35
- --------------------------------------------------------------------------------------------------
EQ/ALLIANCE COMMON STOCK
- --------------------------------------------------------------------------------------------------
Unit value $130.14 $110.60 $ 97.85
- --------------------------------------------------------------------------------------------------
Number of units outstanding (000's) 233 224 54
- --------------------------------------------------------------------------------------------------
EQ/ALLIANCE GLOBAL
- --------------------------------------------------------------------------------------------------
Unit value $139.76 $112.39 $ 88.80
- --------------------------------------------------------------------------------------------------
Number of units outstanding (000's) 13 15 5
- --------------------------------------------------------------------------------------------------
EQ/ALLIANCE GROWTH AND INCOME
- --------------------------------------------------------------------------------------------------
Unit value $122.29 $131.71 $128.51
- --------------------------------------------------------------------------------------------------
Number of units outstanding (000's) 14 16 5
- --------------------------------------------------------------------------------------------------
EQ/ALLIANCE GROWTH INVESTORS
- --------------------------------------------------------------------------------------------------
Unit value $129.93 $119.83 $103.75
- --------------------------------------------------------------------------------------------------
Number of units outstanding (000's) 18 22 2
- --------------------------------------------------------------------------------------------------
EQ/ALLIANCE INTERMEDIATE GOVERNMENT SECURITIES
- --------------------------------------------------------------------------------------------------
Unit value $102.33 $110.43 $118.06
- --------------------------------------------------------------------------------------------------
Number of units outstanding (000's) 3 3 --
- --------------------------------------------------------------------------------------------------
EQ/ALLIANCE INTERNATIONAL
- --------------------------------------------------------------------------------------------------
Unit value $131.34 $100.03 $ 76.02
- --------------------------------------------------------------------------------------------------
Number of units outstanding (000's) 4 4 1
- --------------------------------------------------------------------------------------------------
EQ/ALLIANCE MONEY MARKET
- --------------------------------------------------------------------------------------------------
Unit value $105.79 $111.13 $114.06
- --------------------------------------------------------------------------------------------------
Number of units outstanding (000's) 1 3 1
- --------------------------------------------------------------------------------------------------
EQ/ALLIANCE PREMIER GROWTH
- --------------------------------------------------------------------------------------------------
Unit value $116.55 $ 94.27 $ 70.28
- --------------------------------------------------------------------------------------------------
Number of units outstanding (000's) 1 6 --
- --------------------------------------------------------------------------------------------------
EQ/ALLIANCE QUALITY BOND
- --------------------------------------------------------------------------------------------------
Unit value $100.33 $110.65 $118.44
- --------------------------------------------------------------------------------------------------
Number of units outstanding (000's) 2 2 1
- --------------------------------------------------------------------------------------------------
FOR USE ONLY IN THE STATE OF OREGON
- ------ ------------------------------------------------------------------------
8
For the years ending December 31,
----------------------------------------------------
----------------------------------------------------
1999 2000 2001
- ---------------------------------------------------------------------------------------------------
EQ/ALLIANCE SMALL CAP GROWTH
- ---------------------------------------------------------------------------------------------------
Unit value $110.37 $124.31 $106.88
- ---------------------------------------------------------------------------------------------------
Number of units outstanding (000's) 5 12 2
- ---------------------------------------------------------------------------------------------------
EQ/ALLIANCE TECHNOLOGY
- ---------------------------------------------------------------------------------------------------
Unit value -- $ 66.31 $ 49.65
- ---------------------------------------------------------------------------------------------------
Number of units outstanding (000's) -- 5 2
- ---------------------------------------------------------------------------------------------------
EQ/AXP NEW DIMENSIONS
- ---------------------------------------------------------------------------------------------------
Unit value -- $ 82.99 $ 69.48
- ---------------------------------------------------------------------------------------------------
Number of units outstanding (000's) -- -- --
- ---------------------------------------------------------------------------------------------------
EQ/AXP STRATEGY AGGRESSIVE
- ---------------------------------------------------------------------------------------------------
Unit value -- $ 62.21 $ 41.02
- ---------------------------------------------------------------------------------------------------
Number of units outstanding (000's) -- -- --
- ---------------------------------------------------------------------------------------------------
EQ/BALANCED
- ---------------------------------------------------------------------------------------------------
Unit value $121.00 $118.02 $114.50
- ---------------------------------------------------------------------------------------------------
Number of units outstanding (000's) 65 66 22
- ---------------------------------------------------------------------------------------------------
EQ/BERNSTEIN DIVERSIFIED VALUE
- ---------------------------------------------------------------------------------------------------
Unit value -- -- $ 95.39
- ---------------------------------------------------------------------------------------------------
Number of units outstanding (000s) -- -- 1
- ---------------------------------------------------------------------------------------------------
EQ/CALVERT SOCIALLY RESPONSIBLE
- ---------------------------------------------------------------------------------------------------
Unit value $107.76 $103.69 $ 87.65
- ---------------------------------------------------------------------------------------------------
Number of units outstanding (000s) -- -- --
- ---------------------------------------------------------------------------------------------------
EQ/CAPITAL GUARDIAN RESEARCH
- ---------------------------------------------------------------------------------------------------
Unit value $106.96 $112.26 $109.00
- ---------------------------------------------------------------------------------------------------
Number of units outstanding (000s) -- -- --
- ---------------------------------------------------------------------------------------------------
EQ/CAPITAL GUARDIAN U.S. EQUITY
- ---------------------------------------------------------------------------------------------------
Unit value $101.79 $104.51 $101.25
- ---------------------------------------------------------------------------------------------------
Number of units outstanding (000's) -- -- --
- ---------------------------------------------------------------------------------------------------
EQ/EMERGING MARKETS EQUITY
- ---------------------------------------------------------------------------------------------------
Unit value $198.84 $118.14 $111.05
- ---------------------------------------------------------------------------------------------------
Number of units outstanding (000's) 2 2 --
- ---------------------------------------------------------------------------------------------------
EQ/EQUITY 500 INDEX
- ---------------------------------------------------------------------------------------------------
Unit value $125.64 $112.30 $ 97.75
- ---------------------------------------------------------------------------------------------------
Number of units outstanding (000's) 53 55 7
- ---------------------------------------------------------------------------------------------------
EQ/EVERGREEN OMEGA
- ---------------------------------------------------------------------------------------------------
Unit value $106.75 $ 93.40 $ 76.81
- ---------------------------------------------------------------------------------------------------
Number of units outstanding (000's) -- -- --
- ---------------------------------------------------------------------------------------------------
EQ/FI MID CAP
- ---------------------------------------------------------------------------------------------------
Unit value -- $100.13 $ 85.92
- ---------------------------------------------------------------------------------------------------
Number of units outstanding (000's) -- -- --
- ---------------------------------------------------------------------------------------------------
FOR USE ONLY IN THE STATE OF OREGON
- ------------------------------------------------------------------- --------
9
For the years ending December 31,
----------------------------------------------------
----------------------------------------------------
1999 2000 2001
- ---------------------------------------------------------------------------------------------------
EQ/FI SMALL/MID CAP VALUE
- ---------------------------------------------------------------------------------------------------
Unit value $103.94 $108.31 $111.62
- ---------------------------------------------------------------------------------------------------
Number of units outstanding (000's) 3 3 1
- ---------------------------------------------------------------------------------------------------
EQ/HIGH YIELD
- ---------------------------------------------------------------------------------------------------
Unit value $ 85.66 $ 77.34 $ 77.17
- ---------------------------------------------------------------------------------------------------
Number of units outstanding (000's) 5 5 1
- ---------------------------------------------------------------------------------------------------
EQ/JANUS LARGE CAP GROWTH
- ---------------------------------------------------------------------------------------------------
Unit value -- $ 84.07 $ 64.18
- ---------------------------------------------------------------------------------------------------
Number of units outstanding (000's) -- -- --
- ---------------------------------------------------------------------------------------------------
EQ/MARSICO FOCUS
- ---------------------------------------------------------------------------------------------------
Unit value -- -- $105.94
- ---------------------------------------------------------------------------------------------------
Number of units outstanding (000s) -- -- --
- ---------------------------------------------------------------------------------------------------
EQ/MERCURY BASIC VALUE EQUITY
- ---------------------------------------------------------------------------------------------------
Unit value $113.77 $126.07 $131.84
- ---------------------------------------------------------------------------------------------------
Number of units outstanding (000's) 1 2 1
- ---------------------------------------------------------------------------------------------------
EQ/MFS EMERGING GROWTH COMPANIES
- ---------------------------------------------------------------------------------------------------
Unit value $166.37 $133.82 $ 87.46
- ---------------------------------------------------------------------------------------------------
Number of units outstanding (000's) 7 17 3
- ---------------------------------------------------------------------------------------------------
EQ/MFS INVESTORS TRUST
- ---------------------------------------------------------------------------------------------------
Unit value $104.65 $102.99 $ 85.75
- ---------------------------------------------------------------------------------------------------
Number of units outstanding (000's) -- -- --
- ---------------------------------------------------------------------------------------------------
EQ/MFS RESEARCH
- ---------------------------------------------------------------------------------------------------
Unit value $123.09 $115.57 $ 89.54
- ---------------------------------------------------------------------------------------------------
Number of units outstanding (000's) 4 6 1
- ---------------------------------------------------------------------------------------------------
EQ/PUTNAM GROWTH & INCOME VALUE
- ---------------------------------------------------------------------------------------------------
Unit value $ 98.44 $104.17 $ 96.20
- ---------------------------------------------------------------------------------------------------
Number of units outstanding (000's) 2 2 --
- ---------------------------------------------------------------------------------------------------
EQ/T. ROWE PRICE INTERNATIONAL STOCK
- ---------------------------------------------------------------------------------------------------
Unit value $134.15 $108.11 $ 83.75
- ---------------------------------------------------------------------------------------------------
Number of units outstanding (000's) 2 4 --
- ---------------------------------------------------------------------------------------------------
FOR USE ONLY IN THE STATE OF OREGON
- ----- ------------------------------------------------------------------------
10
UNIT VALUES AND NUMBER OF UNITS OUTSTANDING FOR EACH VARIABLE INVESTMENT OPTION,
EXCEPT FOR THOSE OPTIONS OFFERED FOR THE FIRST TIME ON OR AFTER DECEMBER 31,
2001.
For the years ending December 31,
-------------------------------------------------
-------------------------------------------------
1999 2000 2001
- -----------------------------------------------------------------------------------------------
EQ/ALLIANCE QUALITY BOND
- -----------------------------------------------------------------------------------------------
Unit value $100.33 $110.65 $118.44
- -----------------------------------------------------------------------------------------------
Number of units outstanding (000's) 2 2 1
- -----------------------------------------------------------------------------------------------
EQ/ALLIANCE SMALL CAP GROWTH
- -----------------------------------------------------------------------------------------------
Unit value $110.37 $124.31 $106.88
- -----------------------------------------------------------------------------------------------
Number of units outstanding (000's) 3 12 2
- -----------------------------------------------------------------------------------------------
EQ/ALLIANCE TECHNOLOGY
- -----------------------------------------------------------------------------------------------
Unit value $100.00 $ 66.31 $ 49.65
- -----------------------------------------------------------------------------------------------
Number of units outstanding (000's) -- 5 --
- -----------------------------------------------------------------------------------------------
EQ/AXP NEW DIMENSIONS
- -----------------------------------------------------------------------------------------------
Unit value $100.00 $ 82.99 $ 69.48
- -----------------------------------------------------------------------------------------------
Number of units outstanding (000's) -- -- --
- -----------------------------------------------------------------------------------------------
EQ/AXP STRATEGY AGGRESSIVE
- -----------------------------------------------------------------------------------------------
Unit value $100.00 $ 62.21 $ 41.02
- -----------------------------------------------------------------------------------------------
Number of units outstanding (000's) -- -- --
- -----------------------------------------------------------------------------------------------
EQ/BALANCED
- -----------------------------------------------------------------------------------------------
Unit value $121.00 $118.02 $ 99.46
- -----------------------------------------------------------------------------------------------
Number of units outstanding (000's) 65 66 22
- -----------------------------------------------------------------------------------------------
EQ/BERNSTEIN DIVERSIFIED VALUE
- -----------------------------------------------------------------------------------------------
Unit value -- -- $ 95.39
- -----------------------------------------------------------------------------------------------
Number of units outstanding (000's) -- --
- -----------------------------------------------------------------------------------------------
EQ/CALVERT SOCIALLY RESPONSIBLE
- -----------------------------------------------------------------------------------------------
Unit value $107.76 $103.69 $ 87.65
- -----------------------------------------------------------------------------------------------
Number of units outstanding (000's) -- -- --
- -----------------------------------------------------------------------------------------------
EQ/CAPITAL GUARDIAN RESEARCH
- -----------------------------------------------------------------------------------------------
Unit value $106.96 $112.26 $109.00
- -----------------------------------------------------------------------------------------------
Number of units outstanding (000's) -- -- --
- -----------------------------------------------------------------------------------------------
EQ/CAPITAL GUARDIAN U.S. EQUITY
- -----------------------------------------------------------------------------------------------
Unit value $101.79 $104.51 $101.25
- -----------------------------------------------------------------------------------------------
Number of units outstanding (000's) -- -- --
- -----------------------------------------------------------------------------------------------
EQ/EMERGING MARKETS EQUITY
- -----------------------------------------------------------------------------------------------
Unit value $198.84 $118.14 $111.04
- -----------------------------------------------------------------------------------------------
Number of units outstanding (000's) 2 2 --
- -----------------------------------------------------------------------------------------------
FOR USE ONLY IN THE STATE OF OREGON
- --------------------------------------------------------------------- --------
11
UNIT VALUES AND NUMBER OF UNITS OUTSTANDING FOR EACH VARIABLE INVESTMENT OPTION,
EXCEPT FOR THOSE OPTIONS OFFERED FOR THE FIRST TIME ON OR AFTER DECEMBER 31,
2001.
For the years ending December 31,
------------------------------------------------
------------------------------------------------
1999 2000 2001
- ------------------------------------------------------------------------------------------------
EQ/EQUITY 500 INDEX
- ------------------------------------------------------------------------------------------------
Unit value $125.64 $112.30 $ 97.75
- ------------------------------------------------------------------------------------------------
Number of units outstanding (000's) 53 55 7
- ------------------------------------------------------------------------------------------------
EQ/EVERGREEN OMEGA
- ------------------------------------------------------------------------------------------------
Unit value $106.75 $ 93.40 $ 76.81
- ------------------------------------------------------------------------------------------------
Number of units outstanding (000's) -- -- --
- ------------------------------------------------------------------------------------------------
EQ/FI MID CAP
- ------------------------------------------------------------------------------------------------
Unit value $100.00 $100.13 $ 85.92
- ------------------------------------------------------------------------------------------------
Number of units outstanding (000's) -- -- --
- ------------------------------------------------------------------------------------------------
EQ/FI SMALL/MID CAP VALUE
- ------------------------------------------------------------------------------------------------
Unit value $103.94 $108.31 $111.62
- ------------------------------------------------------------------------------------------------
Number of units outstanding (000's) 3 3 1
- ------------------------------------------------------------------------------------------------
EQ/JANUS LARGE CAP GROWTH
- ------------------------------------------------------------------------------------------------
Unit value $100.00 $ 84.07 $ 64.18
- ------------------------------------------------------------------------------------------------
Number of units outstanding (000's) -- -- --
- ------------------------------------------------------------------------------------------------
EQ/MARSICO FOCUS
- ------------------------------------------------------------------------------------------------
Unit value -- -- $105.94
- ------------------------------------------------------------------------------------------------
Number of units outstanding (000's) -- -- --
- ------------------------------------------------------------------------------------------------
EQ/MERCURY BASIC VALUE EQUITY
- ------------------------------------------------------------------------------------------------
Unit value $113.77 $126.07 $131.84
- ------------------------------------------------------------------------------------------------
Number of units outstanding (000's) 1 2 1
- ------------------------------------------------------------------------------------------------
EQ/MFS EMERGING GROWTH COMPANIES
- ------------------------------------------------------------------------------------------------
Unit value $166.37 $133.82 $ 87.46
- ------------------------------------------------------------------------------------------------
Number of units outstanding (000's) 7 17 3
- ------------------------------------------------------------------------------------------------
EQ/MFS INVESTORS TRUST
- ------------------------------------------------------------------------------------------------
Unit value $104.65 $102.99 $ 85.75
- ------------------------------------------------------------------------------------------------
Number of units outstanding (000's) -- -- --
- ------------------------------------------------------------------------------------------------
EQ/MFS RESEARCH
- ------------------------------------------------------------------------------------------------
Unit value $123.09 $115.57 $ 89.54
- ------------------------------------------------------------------------------------------------
Number of units outstanding (000's) 4 6 1
- ------------------------------------------------------------------------------------------------
EQ/PUTNAM GROWTH & INCOME VALUE
- ------------------------------------------------------------------------------------------------
Unit value $ 98.44 $104.17 $ 96.20
- ------------------------------------------------------------------------------------------------
Number of units outstanding (000's) 2 2 --
- ------------------------------------------------------------------------------------------------
EQ/T. ROWE PRICE INTERNATIONAL STOCK
- ------------------------------------------------------------------------------------------------
Unit value $134.15 $108.11 $ 83.75
- ------------------------------------------------------------------------------------------------
Number of units outstanding (000's) 2 4 --
- ------------------------------------------------------------------------------------------------
FOR USE ONLY IN THE STATE OF OREGON
The Equitable Life Assurance Society Of The United States
SUPPLEMENT DATED MAY 1, 2002
TO EQUI-VEST(R) EMPLOYER-SPONSORED
RETIREMENT PROGRAMS PROSPECTUS DATED MAY 1, 2002
FOR EMPLOYEES OF EMPLOYERS ASSOCIATED WITH REALTY ONE
- --------------------------------------------------------------------------------
This Supplement modifies certain information contained in the prospectus or
supplement to prospectus dated May 1, 2002 ("Prospectus") as it relates to
certain series 200 Trusteed Contracts offered by The Equitable Life Assurance
Society of the United States ("Equitable Life"). The Series 200 Trusteed
Contracts, modified as described below (the "Modified Trusteed Contracts"), are
offered to employees of employers associated with Realty One, a real estate
brokerage firm, on the basis described in the Prospectus, except that the
Withdrawal Charge applicable to the Modified Trusteed Contracts will be waived
for all plan assets invested under such Contracts, except for any withdrawal of
plan assets which were invested in the guaranteed interest option less than 120
days prior to such withdrawal. Except as modified above, the discussion under
"Withdrawal charge for series 100 and 200 contracts" under "Charges and
expenses" with respect to Trusteed Contracts is applicable to the Modified
Trusteed Contracts.
The annual administrative charge is waived.
Because you are purchasing an annuity contract to fund a qualified employer
sponsored retirement arrangement, you should be aware that such annuities do not
provide tax deferral benefits beyond those already provided by the Internal
Revenue Code. Before purchasing one of these annuities, you should consider
whether its features and benefits beyond tax deferral meet your needs and goals.
You may also want to consider the relative features, benefits and costs of these
annuities with any other investment that you may use in connection with your
retirement plan or arrangement. (For more information, see "Tax Information," in
the Prospectus).
The Equitable Life Assurance Society Of The United States
SUPPLEMENT DATED MAY 1, 2002
TO EQUI-VEST(R) EMPLOYER-SPONSORED
RETIREMENT PROGRAMS PROSPECTUS DATED MAY 1, 2002
EQUI-VEST(R) TSA CONTRACTS
(SERIES 100 AND SERIES 200)
OFFERED TO CERTAIN PUBLIC SCHOOL EMPLOYEES WITHIN THE STATE OF INDIANA
- --------------------------------------------------------------------------------
This Supplement adds to and modifies certain information contained in the
Prospectus dated May 1, 2002 ("Prospectus") for Equi-Vest(R) Employer-Sponsored
Retirement Programs deferred variable annuity contracts offered by The Equitable
Life Assurance Society of the United States ("Equitable Life"). Equitable Life
will offer its EQUI-VEST(R) Series 100 and Series 200 TSA Contracts, as
described below ("Modified TSA Contracts"), to certain participants in plans
that meet the requirements of Internal Revenue Code Section 403(b) (referred to
as Section 403(b) Plans) sponsored by a public education institution described
in "Tax information" under "Tax-Sheltered annuity arrangements (TSAs)" as
Section 403(b) Plans sponsored by a public education institution described in
Section 403(b)(1)(A)(ii) of the Code within the State of Indiana ("Employer").
Modified TSA Contracts will be available only when an Employer makes
contributions for employees participating in Section 403(b) Plans (whether in
addition to, or instead of, employee salary reduction or elective deferral
contributions, as applicable) and has entered into an agreement with Equitable
Life that permits Equitable Life to offer to you Modified TSA Contracts as a
funding vehicle for your Employer's Section 403(b) Plan ("Modified TSA
Agreement"). Terms not otherwise defined in this Supplement have the same
meaning as in the Prospectus.
Modified TSA Contracts are offered to participants on the same basis and under
the same terms and conditions described in the Prospectus as applicable to the
EQUI-VEST(R) TSA Series 100 and Series 200 Contracts, except for certain
material differences described in this Supplement.
EXCEPTIONS TO WITHDRAWAL CHARGE. Your Employer may notify us of its termination
of a Modified TSA Agreement during the seven-day period ("Employer Window
Period") starting on the fifth anniversary of the initial Modified TSA Contract
purchased pursuant to a Modified TSA Agreement. If your Employer terminates its
Modified TSA Agreement during an Employer Window Period, then you will have a
30-day period ("Annuitant Window Period"), starting on the first business day
after the end of an Employer Window Period, during which to notify our
Processing Office, in writing, whether you desire to terminate your Modified TSA
Contract and transfer your Modified TSA Contract's account value to a successor
funding vehicle without a withdrawal charge being applied.
Accordingly, the Prospectus section entitled "Charges under the contracts" in
"Charges and expenses" has been revised to add the following waiver:
No charge will be applied to any amount withdrawn from your Modified TSA
Contract if your Employer terminates its Modified TSA Agreement with us; and
within the 30-day Annuitant Window Period, you choose to transfer the account
value under your Modified TSA Contract to a successor funding vehicle.
Your opportunity to transfer your account value without paying a withdrawal
charge is wholly dependent upon your Employer providing you with timely notice
of the termination of its Modified TSA Agreement with us and notifying you of
the Annuitant Window Period.
Equitable Life is not obligated to provide you with information relating to your
Employer's decision to terminate its Modified TSA Agreement.
You are not required to make such a transfer and you may decide to continue your
Modified TSA Contract even if your Employer terminates its Modified TSA
Agreement.
FOR USE ONLY IN THE STATE OF INDIANA
888- E3820
- ----- ------------------------------------------------------------------------
2
GUARANTEED INTEREST OPTION RATES. Until the start of the Employer Window Period,
all Modified TSA Contracts held by Annuitants of one Employer ("Unit") will be
credited with a current rate of interest in the Guaranteed Interest Option up to
0.50% lower than the current rate for all other EQUI-VEST(R) Series 100 and
Series 200 TSA Contracts purchased on the same date and not purchased pursuant
to a Modified TSA Agreement or other modified service agreement Equitable Life
has with an Employer. Equitable Life reserves the right to apply different
interest percentage rates to Units, at its discretion, based upon variances in
Unit experience, expenses and other factors. The current rate credited under
Modified TSA Contracts, however, will never be lower than the minimum guaranteed
rates under all EQUI-VEST(R) Series 100 and Series 200 TSA Contracts. See "Your
contract's value in the guaranteed interest option" under "Determining your
contract's value" in the Prospectus.
Once the Employer Window Period begins, the rates for any Modified TSA Contract
within a Unit will be the same as the rates in effect for all other EQUI-VEST(R)
Series 100 and Series 200 TSA Contracts purchased on the same date and not
purchased pursuant to a Modified TSA Agreement or other modified service
agreement Equitable Life has with an Employer.
ANNUAL ADMINISTRATIVE CHARGE. The annual administrative charge under Modified
TSA Contracts may be reduced or waived when participant services are performed
at a modified or minimum level under a Modified TSA Agreement. This annual
administrative charge may continue to be reduced or waived even if your Employer
terminates its Modified TSA Agreement with us. Any reduction or waiver to an
annual administrative charge will not be unfairly discriminatory. See "Charges
and expenses" in the Prospectus.
Because you are purchasing an annuity contract as a Tax Sheltered Annuity (TSA),
you should be aware that such annuities do not provide tax deferral benefits
beyond those already provided by the Internal Revenue Code. Before purchasing
one of these annuities, you should consider whether its features and benefits
beyond tax deferral meet your needs and goals. You may also want to consider the
relative features, benefits and costs of these annuities with any other
investment that you may use in connection with your retirement plan or
arrangement. (For more information, see "Tax Information" in the Prospectus.
FOR USE ONLY IN THE STATE OF INDIANA
E3820
The Equitable Life Assurance Society Of The United States
SUPPLEMENT DATED MAY 1, 2002
TO EQUI-VEST(R) EMPLOYER-SPONSORED
RETIREMENT PROGRAMS PROSPECTUS DATED MAY 1, 2002
- --------------------------------------------------------------------------------
This supplement modifies certain information in the prospectus or supplement to
prospectus dated May 1, 2002 (the "Prospectus") for EQUI-VEST(R)
Employer-Sponsored Retirement Programs deferred variable annuity contracts
offered by The Equitable Life Assurance Society of the United States ("Equitable
Life"). Equitable Life will offer a modified version of its EQUI-VEST(R) Series
200 TSA contracts (the "Modified TSA Agreement") only to participants in
qualifying retirement programs of certain nonprofit healthcare organizations.
This Supplement describes the material differences between the Modified TSA
Agreement and the EQUI-VEST(R) Series 200 TSA contract described in the
Prospectus. Terms in this Supplement have the same meaning as in the Prospectus.
Material differences between the Modified TSA Agreement and the TSA provisions
described in the EQUI-VEST(R) Prospectus include the following:
o WITHDRAWAL CHARGE. The Withdrawal Charge schedule for the Modified TSA
Agreement is as follows:
Contract Year(s) Charge
--------------------------- ---------------------------
1 6%
2 5
3 4
4 3
5 2
6+ 0
This table replaces the EQUI-VEST(R) Series 200 Withdrawal Charge table in
"Withdrawal charge for series 100 and 200 contracts" under "Charges and
expenses."
o EXCEPTIONS TO THE WITHDRAWAL CHARGE. For the modified TSA Agreement, the
withdrawal charge section in "Charges and expenses" has been revised to add
the following waivers:
No charge will be applied to any amount withdrawn from the Modified TSA
Agreement if:
- -- The annuitant has separated from service, or
- -- The annuitant makes a withdrawal at any time and qualifies to receive Social
Security disability benefits as certified by the Social Security
Administration or any successor agency, or
- -- The annuitant makes a withdrawal that qualifies as a hardship withdrawal
under the Plan and the Code.
o ANNUAL ADMINISTRATIVE CHARGE. The annual administrative charge for
participants under the Modified TSA Agreement is at maximum the charge
described in the Prospectus -- that is, it is equal to the lesser of $30 or
2% of the account value on the last business day of each year (adjusted to
include any withdrawals made during the year), to be prorated for a
fractional year. This charge may be reduced or waived when a Modified TSA
Agreement is used by the employer and the required participant services are
performed at a modified or minimum level.
Because you are purchasing an annuity contract as a Tax Sheltered Annuity (TSA),
you should be aware that such annuities do not provide tax deferral benefits
beyond those already provided by the Internal Revenue Code. Before purchasing
one of these annuities, you should consider whether its features and benefits
beyond tax deferral meet your needs and goals. You may also want to consider the
relative features, benefits and costs of these annuities with any other
investment that you may use in connection with your retirement plan or
arrangement. (For more information, see "Tax Information", in the prospectus.)
FOR USE ONLY IN THE STATE OF ILLINOIS
888- E3819
The Equitable Life Assurance Society Of The United States
SUPPLEMENT DATED MAY 1, 2002
TO EQUI-VEST(R) EMPLOYER-SPONSORED
RETIREMENT PROGRAMS PROSPECTUS DATED MAY 1, 2002
- --------------------------------------------------------------------------------
This supplement modifies certain information in the prospectus or supplement to
prospectus dated May 1, 2002 (the "Prospectus") for EQUI-VEST(R)
Employer-Sponsored Retirement Programs deferred variable annuity contracts
offered by The Equitable Life Assurance Society of the United States ("Equitable
Life"). Equitable Life will offer its EQUI-VEST(R) Series 200 TSA contracts
modified with Rider 95MDHOSP (the "Modified TSA Contract") only to employees
(age 75 and below) of hospitals and non-profit healthcare organizations doing
business in Maryland. This Supplement describes the material differences between
the Modified TSA Contract and the EQUI-VEST(R) Series 200 TSA contract described
in the Prospectus. Terms in this Supplement have the same meaning as in the
Prospectus.
Material differences between the Modified TSA Contract and the TSA provisions
described in the EQUI-VEST(R) Prospectus include the following:
o Withdrawal Charge. The Withdrawal Charge schedule for the Modified TSA
Contract is as follows:
Contract Year(s) Charge
1 6%
2 5
3 4
4 3
5 2
6+ 0
This table replaces the EQUI-VEST(R) Series 200 Withdrawal Charge table in
"Withdrawal charge for series 100 and 200 contracts" under "Charges and
expenses" in the Prospectus.
o LOANS. Loans will be available under the Modified TSA Contract when the TSA
plan is subject to the Employee Retirement Income Security Act of 1974
(ERISA). Only one outstanding loan will be permitted at any time. There is a
minimum loan amount of $1,000 and a maximum loan amount which varies
depending on the participant's account value but may never exceed $50,000.
For more complete details and rules on Loans, see "Loans from qualified plans
and TSAs" under "Tax information" in the Prospectus.
o EXCEPTIONS TO THE WITHDRAWAL CHARGE. For the modified TSA Contract, the
withdrawal charge section in "Charges and expenses" has been revised as
follows:
No charge will be applied to any amount withdrawn from the TSA Contract if:
-- the annuitant has separated from service, or
-- the annuitant makes a withdrawal that qualifies as a hardship withdrawal
under the Plan and the Code, or
-- the annuitant makes a withdrawal at any time and qualifies to receive
Social Security disability benefits as certified by the Social Security
Administration or any successor agency.
-- The annuitant withdraws funds that were transferred on or after January
18, 1996 into the Modified TSA Contract from another tax sheltered
annuity contract qualified under Section 403(b) of the Code and issued by
an insurance company other than Equitable Life.
FOR USE ONLY IN THE STATE OF MARYLAND
E3826
- ----- ------------------------------------------------------------------------
2
o ANNUAL ADMINISTRATIVE CHARGE. No annual administrative charge will be
charged to participants in the Modified TSA Contract.
Because you are purchasing an annuity contract as a Tax Sheltered Annuity (TSA),
you should be aware that such annuities do not provide tax deferral benefits
beyond those already provided by the Internal Revenue Code. Before purchasing
one of these annuities, you should consider whether its features and benefits
beyond tax deferral meet your needs and goals. You may also want to consider the
relative features, benefits and costs of these annuities with any other
investment that you may use in connection with your retirement plan or
arrangement. (For more information, see "Tax Information" in the Prospectus.)
The Equitable Life Assurance Society Of The United States
SUPPLEMENT DATED MAY 1, 2002
TO EQUI-VEST(R) EMPLOYER-SPONSORED
RETIREMENT PROGRAMS PROSPECTUS DATED MAY 1, 2002
FOR EMPLOYEES OF ALLEGHENY COUNTY, PENNSYLVANIA
- --------------------------------------------------------------------------------
This Supplement modifies certain information contained in the Prospectus dated
May 1, 2002 ("Prospectus") as it relates to the Series 200 EDC Contracts offered
by The Equitable Life Assurance Society of the United States ("Equitable Life").
The Series 200 EDC Contracts, modified as described below (the "Modified EDC
Contracts"), are offered to employees of Allegheny County, Pennsylvania, on the
basis described in the Prospectus, except that the Withdrawal Charge and Annual
Administrative Charge applicable to the Modified EDC Contracts will be as
follows:
o Withdrawal Charge. The Withdrawal Charge ("WC") schedule for the Modified
EDC Contract is as follows:
CONTRACT YEAR(S) WC
--------------------------- ---------------------------
1 6%
2 5
3 4
4 3
5 2
6+ 0
This table replaces the table in the Prospectus under "Withdrawal charge for
series 100 and 200 contracts" in "Charges and expenses."
No WC will apply in the event of the:
-- Death
-- Disability
-- Separation from service from Allegheny County
-- Retirement of the participant.
The annual administrative charge is waived.
Because you are purchasing an annuity contract to fund an employer sponsored
retirement arrangement, under Section 457 of the Code, you should be aware that
such annuities do not provide tax deferral benefits beyond those already
provided by the Internal Revenue Code. Before purchasing one of these annuities,
you should consider whether its features and benefits beyond tax deferral meet
your needs and goals. You may also want to consider the relative features,
benefits and costs of these annuities with any other investment that you may use
in connection with your retirement plan or arrangement. (For more information,
see "Tax Information," in the Prospectus).
THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES
SUPPLEMENT DATED MAY 1, 2002, TO THE EQUI-VEST EMPLOYER-SPONSORED RETIREMENT
PROGRAMS ("EQUI-VEST") PROSPECTUS AND THE TSA ADVANTAGE SUPPLEMENT ("SERIES
600")
- --------------------------------------------------------------------------------
This supplement, which is for use in the state of Washington ONLY, modifies
certain information in the above-referenced Prospectus and Supplement. Unless
otherwise indicated, all other information in the Prospectus and Supplement
remains unchanged. The modifications are as follows:
(1) All references to the "Fixed Maturity Options ("FMOs")" are deleted in
their entirety. The contracts described in the above-referenced Prospectus
and Supplement do not offer FMOs.*
*The incidental reference to "fixed maturity options" at the top of page 8 in
the Series 600 Supplement, however, is not deleted.
(2) In "Charges and Expenses" under "Annual administrative charge," the seventh
paragraph in the EQUI-VEST Prospectus and the fourth paragraph in the
Series 600 Supplement are deleted in their entirety and replaced with the
following:
The charge is deducted pro rata from the variable investment options.
If your account value is allocated 100% to the guaranteed interest
option, the charge will be waived.
(3) APPLICABLE TO EQUI-VEST CONTRACTS ONLY:
o All references to "Trusteed (sometimes referred to as "Unincorporated
and/or Corporate Trusteed") contracts are deleted in their entirety.
These contracts are not available through the above-referenced
Prospectus.
o In "Charges and Expenses" under "Withdrawal charge for Series 300 and
400 contracts," the following paragraph is added immediately
following the first paragraph:
For SIMPLE IRA contracts, in the case of surrenders, we will pay
you the greater of (i ) the cash value, or (ii) the free
withdrawal amount plus 94% of the remaining account value. For
issue ages 60 and older, the percentage is 95% in the 5th contract
year following a contribution; for issue ages under 60, the
percentage is 94.5% in the 6th contract year following a
contribution.
o In "Charges and Expenses" under "Disability, terminal illness or
confinement to a nursing home," the first bullet in the last paragraph
is deleted in its entirety and replaced with the following:
o after six (for SIMPLE IRA contracts, five) contract years and
the annuitant is at least age 59-1/2; or
FOR USE IN THE STATE OF WASHINGTON ONLY
Form Number 888-1326A Cat No. 129484
E4032
The Equitable Life Assurance Society of the United States
SUPPLEMENT DATED MAY 1, 2002, TO THE EQUI-VEST ("SERIES 800") AND EQUI-VEST
EXPRESS PROSPECTUSES
- --------------------------------------------------------------------------------
This supplement, which is for use in the state of Washington ONLY, modifies
certain information in the above-referenced Prospectuses. Unless otherwise
indicated, all other information in the Prospectuses remains unchanged. The
modifications are as follows:
(1) APPLICABLE TO SERIES 800 AND EQUI-VEST EXPRESS CONTRACTS:
o All references to the "Fixed Maturity Options ("FMOs")" are deleted in
their entirety. The contracts described in the above-referenced
Prospectuses and Supplement do not offer FMOs.
(2) APPLICABLE TO SERIES 800 CONTRACTS ONLY:
o All references to the "ratcheted death benefit" are deleted in their
entirety. The contract described in the Series 800 Prospectus does not
offer the ratcheted death benefit feature.
o In "EQUI-VEST at a glance -- key features" under "Annuitant issue ages,"
all references to age "90" are changed to "85."
o In "Contract features and benefits" under "How you can purchase and
contribute to your contract," note the following changes:
(1) Under each column heading entitled "Available for annuitant issue
ages," the information presented is deleted in its entirety and
replaced with the following:
0 through 85
(2) Under each column heading entitled "Limitations on contributions,"
the second and third bullets are deleted in their and entirety and
replaced with the following single bullet:
For annuitants age 84 through 85 at contract issue, additional
contributions may be made up to one year beyond the annuitant's
issue age.
(3) The footnote, which is marked with an asterisk, immediately
following the chart is deleted in its entirety and replaced with the
following:
* For traditional IRA contracts, the maximum issue age is 70, but
we will issue up to age 85 if the contribution is a rollover
contribution.
o In "Accessing your money" under "Selecting an annuity payout option,"
paragraphs (i)-(iv) are deleted in their entirety and replaced with the
following two paragraphs:
(i) if the annuitant was not older than age 80 when the contract was
issued, the contract anniversary that follows the annuitant's 90th
birthday;
(ii) if the annuitant was age 81 through 85 when the contract was
issued, the contract anniversary that follows the annuitant's 95th
birthday.
o In "Charges and expenses" under "Annual administrative charge," the
second paragraph is deleted in its entirety and replaced with the
following:
The charge is deducted pro rata from the variable investment options. If
your account value is allocated 100% to the guaranteed interest option,
the charge will be waived.
o In "Charges and expenses" under "Withdrawal charges," the second
sentence of the third paragraph is deleted and replaced with the
following:
In the case of surrenders, we will pay you the greater of (i) the cash
value, or (ii) the free withdrawal amount plus 94% (95% in the fifth
contract year if the annuitant was age 60 or over when the contract was
issued) of the remaining account value.
FOR USE IN THE STATE OF WASHINGTON ONLY
Form Number 888-1326 Catalog Number 129481
Job # X00359
o In "Charges and expenses" the section entitled "Annuitant ages 86
through 90 when the contract is issued" is deleted in its entirety.
o In "Charges and expenses" under "Disability, terminal illness, or
confinement to nursing home," the last paragraph and two bullets are
deleted in their entirety and replaced with the following heading and
two bullets:
For NQ, Traditional IRA, QP IRA and Roth IRA contracts, the withdrawal
charge also does not apply in the following circumstances:
o after five contract years and the annuitant is at least age 59-1/2;
or
o if you request a refund of a contribution in excess of amounts
allowed to be contributed under the federal income tax rules within
one month of the date on which you made the contribution.
FOR USE IN THE STATE OF WASHINGTON ONLY
2
The Equitable Life Assurance Society of the United States
SUPPLEMENT DATED MAY 1, 2002, TO EQUI-VEST(R) SERIES 100 AND SERIES 200,
EMPLOYER-SPONSORED RETIREMENT PROGRAMS, PROSPECTUS DATED MAY 1, 2002
- --------------------------------------------------------------------------------
This supplement modifies certain information in the prospectus or supplements to
prospectus dated May 1, 2002 (the "Prospectus") for EQUI-VEST(R)
Employer-Sponsored Retirement programs, deferred variable annuity contracts
offered by The Equitable Life Assurance Society of the United States ("Equitable
Life"). Equitable Life will offer its EQUI-VEST(R) Series 100 and Series 200 EDC
contracts modified with riders 2002EDC-WC-MI and PF 10,962, as applicable, (the
"Modified EDC Agreement") only to participants in the EDC plan for Wayne County,
Michigan. This Supplement describes the material differences between the
Modified EDC Agreement and the EQUI-VEST(R) Series 100 and Series 200 EDC
contracts described in the Prospectus. Terms in this Supplement have the same
meaning as in the Prospectus.
1. EXCEPTIONS TO THE WITHDRAWAL CHARGE. Under the section titled, "For SEP,
SARSEP, SIMPLE IRA, TSA, EDC and Annuitant-Owned HR-10 contracts," in
"Withdrawal charge for series 100 and 200 contracts," the following
exceptions are added:
o the Participant retires pursuant to terms of the Plan; or
o the Participant separates from service; or
o the Participant elects a hardship withdrawal that qualifies as an
unforeseeable emergency as defined under the Internal Revenue Code and
approved by the Plan; or
o we receive proof satisfactory to us that the Participant's life
expectancy is six months or less (such proof must include, but is not
limited to, certification by a licensed physician); or
o the Participant has qualified to receive Social Security disability
benefits as certified by the Social Security Administration or is
totally o disabled. Total disability is the Participant's incapacity,
resulting from injury or disease, to engage in any occupation for
remuneration or profit. Such total disability must be certified as
having been continuous for a period of at least six months prior to
notice of claim and the Participant must continue to be deemed totally
disabled.
Written notice of claim must be given to us during the Participant's
lifetime and during the period of total disability prior to each
withdrawal. Along with the Notice of Claim, the Participant must
submit acceptable proof of disability. Such proof of disability must
be either (a) evidence of Social Security disability determination or
(b) a statement from an independent U.S. licensed physician stating
that the Participant meets the definition of total disability as
stated above. Such certification must be resubmitted every 12 months.
Failure to furnish proof of disability within the required time will
not reduce any claim if it was not reasonably possible to do so, and,
in no event, except in the absence of legal capacity, later than one
year from the time proof is otherwise required.
The withdrawal charge will apply if the conditions, as described in
the last two items above, existed at the time the Certificate was
issued or if the condition began within the 12 month period following
the issuance of the Certificate.
2. ANNUAL ADMINISTRATIVE CHARGE. The following is added to the sixth paragraph
in the section, "Annual administrative charge," under "Charges under the
contracts," in the Prospectus:
For EDC contracts issued to participants in the Wayne County, Michigan, EDC
plan, the annual administrative charge is waived if the account value is at
least $15,000 at the end of the contract year.
FOR USE ONLY WITH WAYNE COUNTY, MICHIGAN EDC CONTRACTS
x00360
PART II
INFORMATION NOT REQUIRED IN PROSPECTUS
Item 15. Indemnification of Directors and Officers
-----------------------------------------
Equitable Life's By-Laws provide, in Article VII, as follows:
7.4 Indemnification of Directors, Officers and Employees.
-----------------------------------------------------
(a) To the extent permitted by the law of the State of
New York and subject to all applicable requirements
thereof:
(i) any person made or threatened to be made a party to
any action or proceeding, whether civil or criminal,
by reason of the fact that he or she, or his or her
testator or intestate, is or was a director, officer
or employee of the Company shall be indemnified by
the Company;
(ii) any person made or threatened to be made a party to
any action or proceeding, whether civil or criminal,
by reason of the fact that he or she, or his or her
testator or intestate serves or served any other
organization in any capacity at the request of the
Company may be indemnified by the Company; and
(iii) the related expenses of any such person in any of
said categories may be advanced by the Company
(b) To the extent permitted by the law of the
State of New York, the Company may provide
for further indemnification or advancement
of expenses by resolution of shareholders of
the Company or the Board of Directors, by
amendment of these By-Laws, or by agreement.
{Business Corporation Law ss.ss. 721 -726;
Insurance Law ss.1216}
The directors and officers of Equitable Life are insured under
policies issued by Lloyd's of London, X. L. Insurance Company
and ACE Insurance Company. The annual limit on such policies is
$150 million, and the policies insure the officers and directors
against certain liabilities arising out of their conduct in such
capacities.
Item 16. Exhibits
--------
Exhibits No.
------------
(1) (a) Distribution and Servicing Agreement among
Equico Securities, Inc. (now AXA Advisors,
LLC), Equitable and Equitable Variable
Life Insurance Company, dated as of May 1,
1994, incorporated by reference to Exhibit
3.(c) to Registration Statement File
No. 2-30070, previously filed on February
14, 1995, refiled electronically on July 10,
1998.
II-1
(b) Sales Agreement dated as of January 1, 1995
by and among Equico Securities, Inc. (now
AXA Advisors, LLC), Equitable, Separate
Account A, Separate Account No. 301 and
Separate Account No. 51, previously filed as
Exhibit 1(c) to this Registration Statement
No. 33-89510 on April 24, 1995, incorporated
by reference to Exhibit 3(e) to Registration
Statement File No. 2-30070, filed
electronically July 10, 1998.
(c) Participation Agreement among EQ Advisors
Trust, The Equitable Life Assurance Society
of the United States, Equitable
Distributors, Inc. and EQ Financial
Consultants, Inc. (now AXA Advisors, LLC),
dated as of the 14th day of April 1997,
incorporated by reference to the
Registration Statement of EQ Advisors Trust
(File No. 333-17217) on Form N-1A, filed
August 28, 1997.
(d) Distribution Agreement for services by The
Equitable Life Assurance Society of the
United States to AXA Network, LLC and its
subsidiaries dated January 1, 2000
previously filed with this Registration
Statement, File No. 33-89510, on
April 20, 2001.
(e) Distribution Agreement for services by AXA
Network, LLC to The Equitable Life Assurance
Society of the United States dated
January 1, 2000 previously filed with this
Registration Statement, File No. 33-89510,
on April 20, 2001.
(f) Form of Participation Agreement among AXA
Premier VIP Trust, Equitable Distributors,
Inc., AXA Distributors, LLC and AXA
Advisors, LLC, previously filed with this
Registration Statement File No. 333-64749
on December 5, 2001.
(2) Not applicable.
(4) (a) Form of group annuity contract no.
1050-94IC, previously filed with this
Registration Statement No. 33-89510 on April
24, 1995, incorporated herein by reference
to Exhibit 4(f) to Registration Statement
File No. 2-30070, refiled electronically
July 10, 1998.
(b) Form of group annuity certificate nos. 94ICA
and 94ICB, previously filed with this
Registration Statement No. 33-89510 on April
24, 1995, incorporated herein by reference
to Exhibit 4(g) to Registration Statement
File No. 2-30070, refiled electronically
July 10, 1998.
(c) Forms of endorsement nos. 94ENIRAI, 94ENNQI
and 94ENMVAI to contract no. 1050-94IC,
previously filed with this Registration
Statement No. 33-89510 on April 24, 1995,
incorporated herein by reference to Exhibit
4(h) to Registration Statement File No.
2-30070, refiled electronically July 10,
1998.
(d) Forms of data pages to endorsement nos.
94ENIRAI, 94ENNQI and 94ENMVAI, previously
filed with this Registration Statement No.
33-89510 on April 24, 1995, incorporated
herein by reference to Registration
Statement File No. 2-30070, refiled
electronically July 10, 1998.
(e) Form of application used with the annuity
contract identified above, previously filed
with this Registration Statement No.
33-89510 on April 26, 1996.
(f) Form of data pages for standard Roth IRA
Certificates, incorporated herein by
reference to Exhibit 4(m) to the
Registration Statement on Form N-4, File No.
2-30070, filed June 9, 1998.
(g) Form of endorsement for standard Roth IRA
Certificates, incorporated herein by
reference to Exhibit 4(n) to the
Registration Statement on Form N-4, File No.
2-30070, filed June 9, 1998.
(h) Form of data pages for Roth Advantage
Certificates, incorporated herein by
reference to Exhibit 4(o) to the
Registration Statement on Form N-4, File No.
2-30070, filed June 9, 1998.
(i) Form of endorsement for Roth Advantage
Certificates, incorporated herein by
reference to Exhibit 4(p) to the
Registration Statement on Form N-4, File No.
2-30070, filed June 9, 1998.
(j) Form of data pages for EQUI-VEST Express No.
94ICA/B (8/99), incorporated herein by
reference to Exhibit No. 4(g) to the
Registration Statement File No. 333-81393,
filed on Form N-4 on June 23, 1999.
(k) Form of data pages for EQUI-VEST Tax
Deferred Variable Annuity Application Form
#180-1009, incorporated herein by
reference to Exhibit No. 5(a) to the
Registration Statement File No. 333-81393,
filed on Form N-4 on June 23, 1999.
(l) Form of Guaranteed Death Benefit Rider,
Form No. 99GDB, incorporated herein by
reference to Exhibit No. 4(g) to
Registration Statement File No. 333-81501
filed on Form N-4 on June 24, 1999.
(m) Form of EQUI-VEST data pages, Form No.
94ICA/B (8/99), incorporated herein by
reference to Exhibit No. 4(h) to
Registration Statement File No. 333-81501
filed on Form N-4 on June 24, 1999.
(n) Form of endorsement -- EQUI-VEST Beneficiary
Continuation Option (for use with IRA
contracts) previously filed with this
Registration Statement File No. 33-89510
on April 26, 2000.
(o) Form of Endorsement (No. 2001 ENJONQ)
applicable to Non Qualified Certificates
incorporated herein by reference to Exhibit
4(i) to Registration Statement File No.
333-81393 filed on form N-4 on April 19,
2001.
(p) Form of Endorsement (No. 2000 ENMVA)
applicable to Market Value Adjustment Terms
incorporated herein by reference to Exhibit
4(s) to Registration Statement File No.
2-30070 filed on form N-4 on April 19, 2001.
(q) Form of Amendment (No. 2001 BCOTSA6) to
Certificate 9412CAIB and Endorsement 96
ENTSAIL and 96 ENTSAILI incorporated herein
by reference to Exhibit 4(u) to Registration
Statement File No. 2-30070 filed on form N-4
on April 19, 2001.
(r) Form of Amendment (No. 2001 BCOTSA2) to
Equivest Series 2000 contract incorporated
herein by reference to Exhibit 4(v) to
Registration Statement File No. 2-30070
filed on form N-4 on April 19, 2001.
(s) Form of Amendment (No 2001 BCOTSAI) to
Certificate issued under Contract No. 11930T
incorporated herein by reference to Exhibit
4(t) to Registration Statement File No.
2-30070 filed on form N-4 on April 19, 2001.
(5) (a) Opinion and Consent of Jonathan E. Gaines,
Esq., Vice President and Associate
General Counsel of Equitable, as to the
legality of the securities being registered,
previously filed with this Registration No.
33-89510 on February 14, 1995, refiled
electronically, July 10, 1998.
(b) Copies of the Internal Revenue Service
determination letters regarding
qualification under Section 408 of the
Internal Revenue Code, previously filed with
this Registration Statement No. 33-89510 on
April 26, 1996.
(c) Form of application for use with standard
IRA Certificates and Roth Advantage
Certificates, incorporated herein by
reference to Exhibit No. 5(c) to the
Registration Statement on Form N-4, File No.
2-30070, filed June 9, 1998.
(d) Form of EQUI-VEST(R) Tax-Deferred Variable
Individual Annuity Application, Form No.
180-1009, incorporated herein by reference
to Exhibit No. 5(a) to Registration
Statement File No. 333-81501, filed on
Form N-4 on June 24, 1999.
(8) Not applicable.
(12) Not applicable.
(15) Not applicable.
(23) Consent of PricewaterhouseCoopers LLP.
II-2
(24) (a) Powers of Attorney previously filed with
this Registration Statement, File No.
33-89510 on April 26, 2000.
(b) Power of Attorney for Claus-Michael Dill
previously filed with this Registration
Statement, File No. 33-89510, on
April 20, 2001.
(c) Power of Attorney for Christopher M. Condron
incorporated herein by reference to
Exhibit 10(c) to the Registration
Statement, (File No. 333-61380) on
Form N-4, May 22, 2001.
(d) Power of Attorney for Bruce W. Calvert
incorporated herein by reference to
Exhibit 23(f) to the Registration Statement
on Form N-4 (File No. 333-67876),
filed on August 17, 2001.
(26) Not applicable.
(27) Not applicable.
(28) Not applicable.
Item 17. Undertakings
------------
(a) The undersigned registrant hereby undertakes:
(1) To file, during any period in which offers
or sales are being made, a post-effective
amendment to this registration statement:
(i) To include any prospectus
required by section 10(a)(3) of
the Securities Act of 1933;
(ii) to reflect in the Prospectus any
facts or events arising after the
effective date of the
registration statement (or the
most recent post-effective
amendment thereof) which,
individually or in the aggregate,
represent a fundamental change in
the information set forth in the
registration statement;
(iii) To include any material
information with respect to the
plan distribution not previously
disclosed in the registration
statement of or any material
change to such information in the
registration statement;
The directors and officers of Equitable Life are insured under
Policies issued by Lloyd's of London, X.L. Insurance Company
and Ace Insurance Company. The annual limit on such policies
is $150 million, and the policies insure the officers and
directors against certain liabilities arising out of their
conduct in such capacities.
(2) That, for the purpose of determining any
liability under the Securities Act of 1933,
each such post-effective amendment shall be
deemed to be a new registration statement
relating to the securities offered therein,
and the offering of such securities at that
time shall be deemed to be the initial bona
fide offering thereof;
(3) To remove from registration by means of a
post-effective amendment any of the
securities being registered which remain
unsold at the termination of the offering.
(b) The undersigned registrant hereby undertakes that,
for purposes of determining any liability under the
Securities Act of 1933, each filing of the
registrant's annual report pursuant to Section 13(a)
or 15(d) of the Securities Exchange Act of 1934 that
is incorporated by reference in the registration
statement shall be deemed to be a new registration
statement relating to the securities offered therein,
and the offering of such securities at that time
shall be deemed to be the initial bona fide offering
thereof.
(c) Insofar as indemnification for liabilities arising
under the Securities Act of 1933 may be permitted to
directors, officers and controlling persons of the
registrant pursuant to the foregoing provisions, or
otherwise, the registrant has been advised that in
the opinion of the Securities and Exchange Commission
such indemnification is against public policy as
expressed in the Act and is, therefore,
unenforceable. In the event that claim for
indemnification against such liabilities (other than
the payment by the registrant of expenses incurred or
paid by a director, officer or controlling person of
the registrant in the successful defense of any
action, suit or proceeding) is asserted by such
director, officer or controlling person in connection
with the securities being registered, the registrant
will, unless in the opinion of its counsel the matter
has been settled by controlling precedent, submit to
a court of appropriate jurisdiction the question
whether such indemnification by it is against public
policy as expressed in the Act and will be governed
by the final adjudication of such issue.
II-3
SIGNATURES
Pursuant to the requirements of the Securities Act of 1933, the
registrant certifies that it has reasonable grounds to believe that it meets all
of the requirements for filing on Form S-3 and has duly caused this amendment to
the Registration Statement to be signed on its behalf by the undersigned,
thereunto duly authorized, in the City and State of New York, on April 4, 2002.
THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE
UNITED STATES
(Registrant)
By: /s/ Robin Wagner
----------------------
Robin Wagner
Vice President
Pursuant to the requirements of the Securities Act of 1933, this
amendment to the Registration Statement has been signed by or on behalf of the
following persons in the capacities and on the date indicated.
PRINCIPAL EXECUTIVE OFFICERS:
*Christopher M. Condron Chairman of the Board, Chief Executive
Officer and Director
PRINCIPAL FINANCIAL OFFICER:
*Stanley B. Tulin Vice Chairman of the Board,
Chief Financial Officer and Director
PRINCIPAL ACCOUNTING OFFICER:
*Alvin H. Fenichel Senior Vice President and
Controller
*DIRECTORS:
Bruce W. Calvert Jean-Rene Fourtou George T. Lowy
Francoise Colloc'h Norman C. Francis Edward D. Miller
Christopher M. Condron Donald J. Greene Didier Pineau Valencienne
Henri de Castries John T. Hartley George J. Sella, Jr.
Claus-Michael Dill John H.F. Haskell, Jr. Peter J. Tobin
Joseph L. Dionne Mary R. (Nina) Henderson Stanley B. Tulin
Denis Duverne W. Edwin Jarmain
*By: /s/ Robin Wagner
- ---------------------------
Robin Wagner
Attorney-in-Fact
April 4, 2002
II-4
EXHIBIT LIST
Exhibit No. TAG VALUE
- ----------- ---------
23(a) Consent of PricewaterhouseCoopers LLP. EX-99.23a
II-5