Registration No. 333-104713
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SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
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POST-EFFECTIVE AMENDMENT NO. 2
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)
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)
DODIE KENT
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)
Please send copies of all communications to:
PETER E. PANARITES
FOLEY & LARDNER
WASHINGTON HARBOUR
3000 K STREET, N.W.
WASHINGTON, D.C. 20007
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Equitable Accumulator(R)
A combination variable and fixed deferred annuity contract
PROSPECTUS DATED MAY 1, 2004
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. You should read the prospectuses for each
Trust, which contain important information about the portfolios.
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WHAT IS THE EQUITABLE ACCUMULATOR(R)?
Equitable Accumulator(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 offers income and death
benefit protection. It also offers a number of payout options. You invest to
accumulate value on a tax-deferred basis in one or more of our variable
investment options, the guaranteed interest option, fixed maturity options, or
the account for special dollar cost averaging ("investment options"). This
contract may not currently be available in all states. Certain features and
benefits described in this Prospectus may vary in your state; all features and
benefits may not be available in all contracts or in all states.
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Variable investment options
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o AXA Aggressive Allocation(1) o EQ/Bernstein Diversified Value
o AXA Conservative Allocation (1) o EQ/Calvert Socially Responsible
o AXA Conservative-Plus Allocation(1) o EQ/Capital Guardian International
o AXA Moderate Allocation(1) o EQ/Capital Guardian Research
o AXA Moderate-Plus Allocation(1) o EQ/Capital Guardian U.S. Equity
o AXA Premier VIP Aggressive Equity o EQ/Emerging Markets Equity
o AXA Premier VIP Core Bond o EQ/Equity 500 Index
o AXA Premier VIP Health Care o EQ/Evergreen Omega
o AXA Premier VIP High Yield o EQ/FI Mid Cap
o AXA Premier VIP International Equity o EQ/FI Small/Mid Cap Value
o AXA Premier VIP Large Cap Core o EQ/J.P. Morgan Core Bond
Equity o EQ/Janus Large Cap Growth
o AXA Premier VIP Large Cap Growth o EQ/Lazard Small Cap Value
o AXA Premier VIP Large Cap Value o EQ/Marsico Focus
o AXA Premier VIP Small/Mid Cap o EQ/Mercury Basic Value Equity
Growth o EQ/Mercury International Value
o AXA Premier VIP Small/Mid Cap Value o EQ/MFS Emerging Growth Companies
o AXA Premier VIP Technology o EQ/MFS Investors Trust
o EQ/Alliance Common Stock o EQ/Money Market
o EQ/Alliance Growth and Income o EQ/Putnam Growth & Income Value
o EQ/Alliance Intermediate Government o EQ/Putnam Voyager
Securities o EQ/Small Company Index
o EQ/Alliance International o EQ/Technology(2)
o EQ/Alliance Premier Growth o Laudus Rosenberg VIT Value
o EQ/Alliance Quality Bond Long/Short Equity(3)
o EQ/Alliance Small Cap Growth o U.S. Real Estate -- Class II
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(1) The "AXA Allocation" portfolio.
(2) Subject to shareholder approval, on or about May 14, 2004, we anticipate
that the EQ/Technology investment option (the "replaced option"), which
invests in a corresponding portfolio of EQ Advisors Trust, will be merged
into the AXA Premier VIP Technology investment option (the "surviving
option"), which invests in a corresponding portfolio of AXA Premier VIP
Trust. At that time, we will move the assets in the replaced option into
the surviving option and all allocation elections to the replaced option
will be considered allocations to the surviving option.
(3) Formerly named "AXA Rosenberg VIT Value Long/Short Equity."
You may allocate amounts to any of the variable investment options. Each
variable investment option is a subaccount of Separate Account No. 49. Each
variable investment option, in turn, invests in a corresponding securities
portfolio ("portfolio") of EQ Advisors Trust, AXA Premier VIP Trust, The
Universal Institutional Funds, Inc. or Barr Rosenberg Variable Insurance 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.
ACCOUNT FOR SPECIAL DOLLAR COST AVERAGING. This account pays fixed interest at
guaranteed rates.
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.
We offer two versions of the traditional IRA: "Rollover IRA" and "Flexible
Premium IRA." We also offer two versions of the Roth IRA: "Roth Conversion
IRA" and "Flexible Premium Roth IRA."
o Traditional and Roth Inherited IRA beneficiary continuation contract
("Inherited IRA").
o An annuity that is an investment vehicle for a qualified defined contribution
plan ("QP").
o An Internal Revenue Code Section 403(b) Tax-Sheltered Annuity ("TSA") --
("Rollover TSA").
A contribution of at least $5,000 is required to purchase an NQ, Rollover IRA,
Roth Conversion IRA, Inherited IRA, QP, or Rollover TSA contract. For Flexible
Premium IRA or Flexible Premium Roth IRA contracts, we require a contribution
of $2,000 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, 2004, is part of the registration statement.
The SAI is available free of charge. You may request one by writing to our
processing office or calling 1-800-789-7771. 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.
X00682/Core '02 Series
(R-4/15)
Contents of this Prospectus
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EQUITABLE ACCUMULATOR(R)
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Index of key words and phrases 4
Who is Equitable Life? 5
How to reach us 6
Equitable Accumulator(R) at a glance -- key features 8
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FEE TABLE 11
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Example 14
Condensed financial information 17
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1. CONTRACT FEATURES AND BENEFITS 18
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How you can purchase and contribute to your contract 18
Owner and annuitant requirements 24
How you can make your contributions 24
What are your investment options under the contract? 24
Allocating your contributions 30
Your benefit base 32
Annuity purchase factors 32
Our Living Benefit option 32
Guaranteed minimum death benefit 34
Inherited IRA beneficiary continuation contract 35
Your right to cancel within a certain number of days 36
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2. DETERMINING YOUR CONTRACT'S VALUE 37
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Your account value and cash value 37
Your contract's value in the variable investment options 37
Your contract's value in the guaranteed interest option 37
Your contract's value in the fixed maturity options 37
Your contract's value in the account for special dollar
cost averaging 37
Termination of your contract 37
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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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3. TRANSFERRING YOUR MONEY AMONG INVESTMENT OPTIONS 38
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Transferring your account value 38
Disruptive transfer activity 38
Rebalancing your account value 39
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4. ACCESSING YOUR MONEY 40
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Withdrawing your account value 40
How withdrawals are taken from your account value 41
How withdrawals affect your guaranteed minimum income benefit
and guaranteed minimum death benefit 41
Loans under Rollover TSA contracts 41
Surrendering your contract to receive its cash value 42
When to expect payments 42
Your annuity payout options 42
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5. CHARGES AND EXPENSES 45
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Charges that Equitable Life deducts 45
Charges that the Trusts deduct 48
Group or sponsored arrangements 48
Other distribution arrangements 48
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6. PAYMENT OF DEATH BENEFIT 49
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Your beneficiary and payment of benefit 49
How death benefit payment is made 49
Beneficiary continuation option 50
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7. TAX INFORMATION 52
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Overview 52
Buying a contract to fund a retirement arrangement 52
Transfers among investment options 52
Taxation of nonqualified annuities 52
Individual retirement arrangements (IRAs) 54
Special rules for contracts funding qualified plans 56
Tax-Sheltered Annuity contracts (TSAs) 56
Federal and state income tax withholding and
information reporting 57
Impact of taxes to Equitable Life 58
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8. MORE INFORMATION 59
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About Separate Account No. 49 59
About the Trusts 59
About our fixed maturity options 59
About the general account 60
About other methods of payment 60
Dates and prices at which contract events occur 61
About your voting rights 62
About legal proceedings 62
About our independent auditors 62
Financial statements 62
Transfers of ownership, collateral assignments, loans
and borrowing 62
Distribution of the contracts 63
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9. INCORPORATION OF CERTAIN DOCUMENTS
BY REFERENCE 64
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APPENDICES
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I -- Condensed financial information A-1
II -- Purchase considerations for QP contracts B-1
III -- Market value adjustment example C-1
IV -- Enhanced death benefit example D-1
V -- Hypothetical illustrations E-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.
account for special dollar cost averaging 30
account value 37
administrative charge 45
Annual administrative charge 45
Annual ratchet death benefit 32
annuitant 18
annuity maturity date 44
annuity payout options 42
annuity purchase factors 32
automatic investment program 61
beneficiary 49
Beneficiary Continuation Option ("BCO") 50
benefit base 32
business day 61
cash value 37
charges for state premium and other applicable taxes 47
contract date 9
contract date anniversary 9
contract year 9
contributions to traditional IRAs 55
regular contributions 55
rollovers and transfers 55
disability, terminal illness or confinement to nursing home 46
disruptive transfer activity 38
Distribution charge 45
EQAccess 6
ERISA 41
Fixed-dollar option 31
fixed maturity options 29
Flexible Premium IRA cover
Flexible Premium Roth IRA cover
free look 36
free withdrawal amount 46
general account 60
General dollar cost averaging 31
guaranteed interest option 29
guaranteed minimum death benefit 34
guaranteed minimum income benefit 32
IRA cover
IRS 52
Inherited IRA cover
Investment Simplifier 31
investment options cover
lifetime required minimum distribution withdrawals 41
Page
Living Benefit option 32
Living Benefit charge 47
loan reserve account 42
loans under Rollover TSAs 41
lump sum withdrawals 40
market adjusted amount 29
market value adjustment 29
market timing 38
maturity dates 29
maturity value 29
Mortality and expense risks charge 45
NQ cover
participant 24
portfolio cover
principal assurance allocation 30
processing office 6
Protection Plus 34
Protection Plus charge 47
QP cover
rate to maturity 29
Rebalancing 39
Rollover IRA cover
Rollover TSA cover
roll-up death benefit 32
Roth Conversion IRA cover
Roth IRA 54
SAI cover
SEC cover
self-directed allocation 30
Separate Account 49 59
special dollar cost averaging 30
standard death benefit 32
substantially equal withdrawals 40
Successor owner and annuitant 49
systematic withdrawals 40
TOPS 6
TSA cover
traditional IRA 54
Trusts cover
unit 37
variable investment options 24
wire transmittals and electronic applications 60
withdrawal charge 45
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 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 (Guaranteed Fixed
Interest Accounts in supplemental materials)
variable investment options Investment Funds
account value Annuity Account Value
rate to maturity Guaranteed Rates
unit Accumulation Unit
Living Benefit Guaranteed Minimum Income Benefit
Guaranteed Interest Option Guaranteed Interest Account
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4 Index of key words and phrases
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 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
$508.31 billion in assets as of December 31, 2003. 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.
Effective on or about September 7, 2004, we expect, subject to regulatory
approval, to change the name of "The Equitable Life Assurance Society of the
United States" to "AXA Equitable Life Insurance Company." When the name change
becomes effective, all references in any current prospectus, prospectus
supplement or statement of additional information to "The Equitable Life
Assurance Society of the United States" will become references to "AXA
Equitable Life Insurance Company." Accordingly, all references to "Equitable
Life" or "Equitable" will become references to "AXA Equitable."
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 CONTRIBUTIONS SENT BY REGULAR MAIL:
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Equitable Accumulator(R)
P.O. Box 13014
Newark, NJ 07188-0014
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FOR CONTRIBUTIONS SENT BY EXPRESS DELIVERY:
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Equitable Accumulator(R)
c/o Bank One, N.A.
300 Harmon Meadow Boulevard, 3rd Floor
Attn: Box 13014
Secaucus, NJ 07094
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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 Accumulator(R)
P.O. Box 1547
Secaucus, NJ 07096-1547
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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 Accumulator(R)
200 Plaza Drive, 4th Floor
Secaucus, NJ 07094
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REPORTS WE PROVIDE:
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o written confirmation of financial transactions;
o statement of your contract values at the close of each calendar year and any
calendar quarter in which there was a financial transaction; and
o annual statement of your contract values as of the close of the contract
year, including notification of eligibility to exercise the guaranteed
minimum income benefit, if applicable.
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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 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 investment
options;
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 1-888-909-7770. If you are a client with AXA
Advisors you may use EQAccess by visiting our web site at
http://www.axaonline.com and clicking on EQAccess. All other clients may access
EQAccess by visiting our other web site at http://www.equitable.com. 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 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
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).
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CUSTOMER SERVICE REPRESENTATIVE:
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You may also use our toll-free number (1-800-789-7771) to speak with one of our
customer service representatives. Our customer service representatives are
available on any business day from 8:30 a.m. until 5:30 p.m., Eastern Time.
WE REQUIRE THAT THE FOLLOWING TYPES OF COMMUNICATIONS BE ON SPECIFIC FORMS WE
PROVIDE FOR THAT PURPOSE:
(1) authorization for telephone transfers by your financial professional
(available only for contracts distributed through AXA Distributors);
(2) conversion of a traditional IRA to a Roth Conversion IRA or Flexible
Premium Roth IRA contract;
6 Who is Equitable Life?
(3) election of the automatic investment program;
(4) election of the rebalancing program;
(5) requests for loans under Rollover TSA contracts;
(6) spousal consent for loans under Rollover TSA contracts;
(7) requests for withdrawals or surrenders from Rollover TSA contracts;
(8) tax withholding elections;
(9) election of the beneficiary continuation option;
(10) IRA contribution recharacterizations;
(11) certain section 1035 exchanges;
(12) direct transfers; and
(13) exercise of the Guaranteed minimum income benefit.
WE ALSO HAVE SPECIFIC FORMS THAT WE RECOMMEND YOU USE FOR THE FOLLOWING TYPES
OF REQUESTS:
(1) address changes;
(2) beneficiary changes;
(3) transfers between investment options;
(4) contract surrender and withdrawal requests;
(5) death claims;
(6) general dollar cost averaging (including the fixed dollar and interest
sweep options); and
(7) special dollar cost averaging.
TO CANCEL OR CHANGE 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 (including the fixed dollar and interest
sweep options);
(3) rebalancing;
(4) special dollar cost averaging;
(5) substantially equal withdrawals;
(6) systematic withdrawals; and
(7) 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
Equitable Accumulator(R) at a glance -- key features
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Professional investment Equitable Accumulator's(R) variable investment options invest in different portfolios managed by
management professional investment advisers.
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Fixed maturity options o Fixed maturity options ("FMOs") with maturities ranging from approximately 1 to 10 years (subject
to availability).
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. If you withdraw or transfer
only a portion of a fixed maturity amount, 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 also applies.
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Guaranteed interest o Principal and interest guarantees.
option
o Interest rates set periodically.
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Account for special dollar Available for dollar cost averaging all or a portion of any eligible contribution to your contract.
cost averaging
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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
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If you are purchasing an annuity contract as an Individual Retirement Annuity (IRA) or Tax
Sheltered Annuity (TSA), or to fund an employer retirement plan (QP or Qualified Plan), 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 compared
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 and in the
SAI.)
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Living Benefit protection The Living Benefit provides a guaranteed minimum income benefit. The guaranteed minimum income
benefit provides income protection for you during the annuitant's life once the owner elects to
annuitize the contract.
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Contribution amounts o NQ, Rollover IRA, Roth Conversion IRA, Inherited IRA, QP and Rollover TSA contracts
o Initial minimum: $5,000
o Additional minimum: $500 (NQ, QP and Rollover TSA contracts)
$100 monthly and $300 quarterly under our automatic investment program
(NQ contracts)
$50 (IRA contracts)
$1000 (Inherited IRA contracts)
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o Flexible Premium IRA and Flexible Premium Roth IRA contracts
o Initial minimum: $2,000
o Additional minimum: $ 50
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Maximum contribution limitations may apply. In general, contributions are limited to $1.5 million.
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Access to your money o Lump sum withdrawals
o Several withdrawal options on a periodic basis
o Loans under Rollover TSA contracts
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 tax penalty.
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8 Equitable Accumulator(R) at a glance -- key features
Payout options o Fixed annuity payout options
o Variable Immediate Annuity payout options
o Income Manager(R) payout options
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Additional features o Guaranteed minimum death benefit options
o Dollar cost averaging
o Automatic investment program
o Account value rebalancing (quarterly, semiannually, and annually)
o Free transfers
o Waiver of withdrawal charge for disability, terminal illness, or confinement to a
nursing home
o Protection Plus, an optional death benefit available under certain contracts
(subject to state availability)
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Fees and charges o Daily charges on amounts invested in variable investment options for mortality and
expense risks, administrative charges and distribution charges at an annual rate of 1.20%.
o The charges for the guaranteed minimum death benefits range from 0.0% to 0.60%, annually, of the
applicable benefit base. The benefit base is described under "Your benefit base" in "Contract
features and benefits" later in this Prospectus.
o Annual 0.60% of the applicable benefit base charge for the optional Living Benefit until you
exercise your guaranteed minimum income benefit, elect another annuity payout or the
contract date anniversary after the annuitant reaches age 85, whichever occurs first.
o If your account value at the end of the contract year is less than $50,000, we deduct an annual
administrative charge equal to $30, or during the first two contract years, 2% of your
account value, if less. If your account value, on the contract date anniversary, is
$50,000 or more, we will not deduct the charge.
o Annual 0.35% Protection Plus charge for this optional death benefit.
o No sales charge deducted at the time you make contributions. During the first seven contract
years following a contribution, a charge of up to 7% will be deducted from amounts that you withdraw that
exceed 15% of your account value. We use the account value at the beginning of each contract year to
calculate the 15% amount available. There is no withdrawal charge in the eighth and later contract years
following a contribution. Certain other exemptions apply.
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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." For example, if
your contract date is May 1, your contract date anniversary is April 30.
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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. This 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 the Variable
Immediate Annuity payout options.
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 0.10% to 1.50% annually, 12b-1 fees of either 0.25% or 0.35% annually and
other expenses.
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Annuitant issue ages NQ: 0-85
Rollover IRA, Roth Conversion IRA, Flexible Premium Roth IRA and Rollover TSA: 20-85
Flexible Premium IRA: 20-70
Inherited IRA: 0-70
QP: 20-75
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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. Also, all features
of the contract 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.
Equitable Accumulator(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, credits, fees and/or charges that are
different from those in the contracts 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 Equitable Accumulator(R) at a glance -- key features
Fee table
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The following tables describe the fees and expenses that you will pay when
buying, owning, and surrendering the contract. Each of the charges and expenses
is more fully described in "Charges and expenses" later in this Prospectus.
The first table describes fees and expenses that you will pay at the time that
you surrender the contract or if you make certain withdrawals or apply your
cash to certain payout options or if you purchase a Variable Immediate Annuity
payout option. Charges designed to approximate certain taxes that may be
imposed on us, such as premium taxes in your state, may also apply. Charges for
certain features shown in the fee table are mutually exclusive.
- -----------------------------------------------------------------------------------------------------------------------------------
Charges we deduct from your account value at the time you request certain transactions
- -----------------------------------------------------------------------------------------------------------------------------------
Maximum withdrawal charge as a percentage of contributions with-
drawn (deducted if you surrender your contract or make certain
withdrawals or apply your cash value to certain payout options).(1) 7.00%
Charge if you elect a Variable Immediate Annuity payout option $350
- -----------------------------------------------------------------------------------------------------------------------------------
The next table describes the fees and expenses that you will pay periodically
during the time that you own the contract, not including the underlying trust
portfolio fees and expenses.
- -----------------------------------------------------------------------------------------------------------------------------------
Charges we deduct from your variable investment options expressed as an
annual percentage of daily net assets
- -----------------------------------------------------------------------------------------------------------------------------------
Mortality and expense risks 0.75%
Administrative 0.25%
Distribution 0.20%
----
Total annual expenses 1.20%
- -----------------------------------------------------------------------------------------------------------------------------------
Charges we deduct from your account value on each contract date anniversary
- -----------------------------------------------------------------------------------------------------------------------------------
Maximum annual administrative charge
If your account value on a contract date anniversary is less than
$50,000(2) $ 30
If your account value on a contract date anniversary is $50,000
or more $ 0
- -----------------------------------------------------------------------------------------------------------------------------------
Charges we deduct from your account value each year if you elect the optional benefit
- -----------------------------------------------------------------------------------------------------------------------------------
Guaranteed minimum death benefit charge (calculated as a percentage of the applicable
benefit base. Deducted annually on each contract date anniversary for which the benefit is in effect).
Standard death benefit 0.00%
Annual Ratchet to age 85 0.30% of the Annual Ratchet to age 85 benefit base
6% Roll-up to age 85 0.45% of the 6% roll-up to age 85 benefit base
Greater of 6% Roll-up to age 85 or Annual Ratchet to age 85 0.60% of the greater of the 6% roll-up to age 85 benefit base
or the Annual Ratchet to age 85 benefit base, as applicable
- -----------------------------------------------------------------------------------------------------------------------------------
Living Benefit charge (calculated as a percentage of the applicable
benefit base. Deducted annually on each contract date anniversary for
which the benefit is in effect) 0.60%
- -----------------------------------------------------------------------------------------------------------------------------------
Protection Plus benefit charge (calculated as a percentage of the
account value. Deducted annually on each contract date anniversary
for which the benefit is in effect) 0.35%
- -----------------------------------------------------------------------------------------------------------------------------------
Fee table 11
You also bear your proportionate share of all fees and expenses paid by a
"Portfolio" that corresponds to any variable investment option you are using.
This table shows the lowest and highest total operating expenses charged by any
of the Portfolios that you will pay periodically during the time that you own
the contract. These fees and expenses are reflected in the Portfolio's net asset
value each day. Therefore, they reduce the investment return of the Portfolio
and the related variable investment option. Actual fees and expenses are likely
to fluctuate from year to year. More detail concerning each Portfolio's fees and
expenses is contained in the Trust prospectus for the Portfolio.
- -----------------------------------------------------------------------------------------------------------
Portfolio operating expenses expressed as an annual percentage of daily net assets
- -----------------------------------------------------------------------------------------------------------
Lowest Highest
------ -------
Total Annual Portfolio Operating Expenses for 2003 (expenses that are deducted 0.56% 10.23%
from Portfolio assets including management fees, 12b-1 fees, service fees, and/or
other expenses)(3)
This table shows the fees and expenses for 2003 as an annual percentage of each
Portfolio's daily average net assets.
- --------------------------------------------------------------------------------
Management Other
Portfolio Name Fees(4) 12b-1 Fees(5) Expenses(6)
- --------------------------------------------------------------------------------
AXA PREMIER VIP TRUST:
- --------------------------------------------------------------------------------
AXA Aggressive Allocation 0.10% 0.25% 5.91%
AXA Conservative Allocation 0.10% 0.25% 9.04%
AXA Conservative-Plus Allocation 0.10% 0.25% 4.13%
AXA Moderate Allocation 0.10% 0.25% 0.39%
AXA Moderate-Plus Allocation 0.10% 0.25% 1.77%
AXA Premier VIP Aggressive Equity 0.62% 0.25% 0.15%
AXA Premier VIP Core Bond 0.60% 0.25% 0.26%
AXA Premier VIP Health Care 1.20% 0.25% 0.48%
AXA Premier VIP High Yield 0.59% 0.25% 0.16%
AXA Premier VIP International Equity 1.05% 0.25% 0.73%
AXA Premier VIP Large Cap Core Equity 0.90% 0.25% 0.52%
AXA Premier VIP Large Cap Growth 0.90% 0.25% 0.43%
AXA Premier VIP Large Cap Value 0.90% 0.25% 0.43%
AXA Premier VIP Small/Mid Cap Growth 1.10% 0.25% 0.35%
AXA Premier VIP Small/Mid Cap Value 1.10% 0.25% 0.31%
AXA Premier VIP Technology 1.20% 0.25% 0.83%
- --------------------------------------------------------------------------------
EQ ADVISORS TRUST:
- --------------------------------------------------------------------------------
EQ/Alliance Common Stock 0.48% 0.25% 0.06%
EQ/Alliance Growth and Income 0.57% 0.25% 0.06%
EQ/Alliance Intermediate
Government Securities 0.49% 0.25% 0.08%
EQ/Alliance International 0.74% 0.25% 0.13%
EQ/Alliance Premier Growth 0.90% 0.25% 0.05%
EQ/Alliance Quality Bond 0.52% 0.25% 0.06%
EQ/Alliance Small Cap Growth 0.75% 0.25% 0.07%
EQ/Bernstein Diversified Value 0.64% 0.25% 0.06%
EQ/Calvert Socially Responsible 0.65% 0.25% 0.55%
EQ/Capital Guardian International 0.85% 0.25% 0.21%
EQ/Capital Guardian Research 0.65% 0.25% 0.07%
EQ/Capital Guardian U.S. Equity 0.65% 0.25% 0.07%
EQ/Emerging Markets Equity 1.15% 0.25% 0.40%
EQ/Equity 500 Index 0.25% 0.25% 0.06%
EQ/Evergreen Omega 0.65% 0.25% 0.25%
EQ/FI Mid Cap 0.70% 0.25% 0.08%
EQ/FI Small/Mid Cap Value 0.75% 0.25% 0.10%
EQ/Janus Large Cap Growth 0.90% 0.25% 0.09%
EQ/J.P. Morgan Core Bond 0.44% 0.25% 0.08%
EQ/Lazard Small Cap Value 0.75% 0.25% 0.10%
EQ/Marsico Focus 0.90% 0.25% 0.07%
EQ/Mercury Basic Value Equity 0.60% 0.25% 0.07%
EQ/Mercury International Value 0.85% 0.25% 0.16%
EQ/MFS Emerging Growth Companies 0.65% 0.25% 0.07%
EQ/MFS Investors Trust 0.60% 0.25% 0.11%
- --------------------------------------------------------------------------------
This table shows the fees and expenses for 2003 as an annual percentage of each
Portfolio's daily average net assets.
Total Annual Fee Waivers Net Total
Underlying Expenses and/or Annual
Portfolio Before Expense Expenses
Fees and Expense Reimburse- After Expense
Portfolio Name Expenses(7) Limitation ments(8) Limitations
- -----------------------------------------------------------------------------------------------------------
AXA PREMIER VIP TRUST:
- -----------------------------------------------------------------------------------------------------------
AXA Aggressive Allocation 1.08% 7.34% (5.98)% 1.36%
AXA Conservative Allocation 0.84% 10.23% (9.13)% 1.10%
AXA Conservative-Plus Allocation 0.88% 5.36% (4.21)% 1.15%
AXA Moderate Allocation 0.86% 1.60% (0.43)% 1.17%
AXA Moderate-Plus Allocation 1.13% 3.25% (1.87)% 1.38%
AXA Premier VIP Aggressive Equity -- 1.02% -- 1.02%
AXA Premier VIP Core Bond -- 1.11% (0.16)% 0.95%
AXA Premier VIP Health Care -- 1.93% (0.08)% 1.85%
AXA Premier VIP High Yield -- 1.00% -- 1.00%
AXA Premier VIP International Equity -- 2.03% (0.23)% 1.80%
AXA Premier VIP Large Cap Core Equity -- 1.67% (0.32)% 1.35%
AXA Premier VIP Large Cap Growth -- 1.58% (0.23)% 1.35%
AXA Premier VIP Large Cap Value -- 1.58% (0.23)% 1.35%
AXA Premier VIP Small/Mid Cap Growth -- 1.70% (0.10)% 1.60%
AXA Premier VIP Small/Mid Cap Value -- 1.66% (0.06)% 1.60%
AXA Premier VIP Technology -- 2.28% (0.43)% 1.85%
- -----------------------------------------------------------------------------------------------------------
EQ ADVISORS TRUST:
- -----------------------------------------------------------------------------------------------------------
EQ/Alliance Common Stock -- 0.79% -- 0.79%
EQ/Alliance Growth and Income -- 0.88% -- 0.88%
EQ/Alliance Intermediate
Government Securities -- 0.82% -- 0.82%
EQ/Alliance International -- 1.12% (0.02)% 1.10%
EQ/Alliance Premier Growth -- 1.20% (0.04)% 1.16%
EQ/Alliance Quality Bond -- 0.83% -- 0.83%
EQ/Alliance Small Cap Growth -- 1.07% -- 1.07%
EQ/Bernstein Diversified Value -- 0.95% 0.00% 0.95%
EQ/Calvert Socially Responsible -- 1.45% (0.40)% 1.05%
EQ/Capital Guardian International -- 1.31% (0.11)% 1.20%
EQ/Capital Guardian Research -- 0.97% (0.02)% 0.95%
EQ/Capital Guardian U.S. Equity -- 0.97% (0.02)% 0.95%
EQ/Emerging Markets Equity -- 1.80% 0.00% 1.80%
EQ/Equity 500 Index -- 0.56% -- 0.56%
EQ/Evergreen Omega -- 1.15% (0.20)% 0.95%
EQ/FI Mid Cap -- 1.03% (0.03)% 1.00%
EQ/FI Small/Mid Cap Value -- 1.10% 0.00% 1.10%
EQ/Janus Large Cap Growth -- 1.24% (0.09)% 1.15%
EQ/J.P. Morgan Core Bond -- 0.77% 0.00% 0.77%
EQ/Lazard Small Cap Value -- 1.10% 0.00% 1.10%
EQ/Marsico Focus -- 1.22% (0.07)% 1.15%
EQ/Mercury Basic Value Equity -- 0.92% 0.00% 0.92%
EQ/Mercury International Value -- 1.26% (0.01)% 1.25%
EQ/MFS Emerging Growth Companies -- 0.97% -- 0.97%
EQ/MFS Investors Trust -- 0.96% (0.01)% 0.95%
- -----------------------------------------------------------------------------------------------------------
12 Fee table
- -------------------------------------------------------------------------------
Management Other
Portfolio Name Fees(4) 12b-1 Fees(5) Expenses(6)
- -------------------------------------------------------------------------------
EQ ADVISORS TRUST:
- -------------------------------------------------------------------------------
EQ/Money Market 0.33% 0.25% 0.06%
EQ/Putnam Growth & Income Value 0.60% 0.25% 0.10%
EQ/Putnam Voyager 0.65% 0.25% 0.13%
EQ/Small Company Index 0.25% 0.25% 0.35%
EQ/Technology 0.90% 0.25% 0.09%
- -------------------------------------------------------------------------------
BARR ROSENBERG VARIABLE INSURANCE TRUST:
- -------------------------------------------------------------------------------
Laudus Rosenberg VIT Value
Long/Short Equity 1.50% 0.25% 5.80%
- -------------------------------------------------------------------------------
THE UNIVERSAL INSTITUTIONAL FUNDS, INC.:
- -------------------------------------------------------------------------------
U.S. Real Estate - Class II 0.80% 0.35% 0.31%
- -------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------
Total Annual Fee Waivers Net Total
Underlying Expenses and/or Annual
Portfolio Before Expense Expenses
Fees and Expense Reimburse- After Expense
Portfolio Name Expenses(7) Limitation ments(8) Limitations
- ----------------------------------------------------------------------------------------------
EQ ADVISORS TRUST:
- ----------------------------------------------------------------------------------------------
EQ/Money Market -- 0.64% -- 0.64%
EQ/Putnam Growth & Income Value -- 0.95% 0.00% 0.95%
EQ/Putnam Voyager -- 1.03% (0.08)% 0.95%
EQ/Small Company Index -- 0.85% 0.00% 0.85%
EQ/Technology -- 1.24% (0.09)% 1.15%
- ----------------------------------------------------------------------------------------------
BARR ROSENBERG VARIABLE INSURANCE TRUST:
- ----------------------------------------------------------------------------------------------
Laudus Rosenberg VIT Value
Long/Short Equity -- 7.55% (4.57)% 2.98%
- ----------------------------------------------------------------------------------------------
THE UNIVERSAL INSTITUTIONAL FUNDS, INC.:
- ----------------------------------------------------------------------------------------------
U.S. Real Estate - Class II -- 1.46% (0.11)% 1.35%
- ----------------------------------------------------------------------------------------------
Notes:
(1) Deducted upon a withdrawal of amounts in excess of the 15% free withdrawal
amount, if applicable:
The withdrawal charge percentage we use is determined by the contract year in Contract
which you make the withdrawal or surrender your contract. For each contribution, Year
we consider the contract year in which we receive that contribution to be "contract 1 ........................ 7.00%
year 1") 2 ........................ 7.00%
3 ........................ 6.00%
4 ........................ 6.00%
5 ........................ 5.00%
6 ........................ 3.00%
7 ........................ 1.00%
8+ ....................... 0.00%
(2) During the first two contract years this charge, if it applies, is equal to
the lesser of $30 or 2% of your account value. Thereafter, the charge is
$30 for each contract year.
(3) "Total Annual Portfolio Operating Expenses" are based, in part, on
estimated amounts for options added during the fiscal year 2003 and for the
underlying portfolios.
(4) The management fees for each Portfolio cannot be increased without a vote
of that Portfolio's shareholders. See footnote (8) for any expense
limitation agreement information.
(5) 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.
(6) Other expenses shown are those incurred in 2003. The amounts shown as
"Other expenses" will fluctuate from year to year depending on actual
expenses. See footnote (8) for any expense limitation agreements
information.
(7) The AXA Allocation variable investment options invest in corresponding
portfolios of the AXA Premier VIP Trust. Each AXA Allocation portfolio in
turn invests in shares of other portfolios of the EQ Advisors Trust and AXA
Premier VIP Trust ("the underlying portfolios"). Amounts shown reflect each
AXA Allocation portfolio's pro rata share of the fees and expenses of the
various underlying portfolios in which it invests. The fees and expenses
have been estimated based on the respective weighted investment allocations
as of 12/31/03. A"-" indicates that the listed portfolio does not invest in
underlying portfolios, i.e., it is not an allocation portfolio.
(8) The amounts shown reflect any fee waivers and/or expense reimbursements
that applied to each Portfolio. A "-" indicates that there is no expense
limitation in effect. "0.00%" indicates that the expense limitation
arrangement did not result in a fee waiver or reimbursement. Equitable
Life, the investment manager of AXA Premier VIP Trust and EQ Advisors
Trust, has entered into Expense Limitation Agreements with respect to
certain Portfolios, which are effective through April 30, 2005. Under these
agreements Equitable Life has agreed to waive or limit its fees and assume
other expenses of certain Portfolios, if necessary, in an amount that
limits each affected Portfolio's Total Annual Expenses (exclusive of
interest, taxes, brokerage commissions, capitalized expenditures and
extraordinary expenses) to not more than specified amounts. 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. Morgan Stanley
Investment Management Inc., which does business in certain instances as
"Van Kampen," is the manager of The Universal Institutional Funds, Inc. --
U.S. Real Estate Portfolio -- Class II, and has voluntarily agreed to
reduce its management fee and/or reimburse the Portfolio so that total
annual operating expenses of the Portfolio (exclusive of investment related
expenses, such as foreign country tax expense and interest expense on
amounts borrowed) are not more than specified amounts. Van Kampen reserves
the right to terminate any waiver and/or reimbursement at any time without
notice. Charles Schwab Investment Management, Inc., the manager of the Barr
Rosenberg Variable Insurance Trust -- Laudus Rosenberg VIT Value Long/Short
Equity Portfolio, has voluntarily agreed to reimburse expenses in excess of
specified amounts. See the Prospectus for each applicable underlying Trust
for more information about the arrangements. In addition, a portion of the
brokerage commissions of certain Portfolios of EQ Advisors Trust Portfolio
and AXA Premier VIP Trust Portfolio is used to reduce the applicable
Portfolio's expenses. If the above table reflected both the expense
limitation arrangements plus the portion of the brokerage commissions used
to reduce portfolio expenses, the net expenses would be as shown in the
table below:
- ----------------------------------------------
Portfolio Name
- ----------------------------------------------
AXA Aggressive Allocation 0.95%
- -------------------------------------------------
AXA Conservative Allocation 0.73%
- -------------------------------------------------
AXA Conservative-Plus Allocation 0.78%
- -------------------------------------------------
AXA Moderate Allocation 0.79%
- -------------------------------------------------
AXA Moderate-Plus Allocation 0.99%
- -------------------------------------------------
AXA Premier VIP Aggressive Equity 0.95%
- -------------------------------------------------
AXA Premier VIP Health Care 1.84%
- -------------------------------------------------
Fee table 13
- -------------------------------------------------
Portfolio Name
- -------------------------------------------------
AXA Premier VIP International Equity 1.73%
- -------------------------------------------------
AXA Premier VIP Large Cap Core Equity 1.32%
- -------------------------------------------------
AXA Premier VIP Large Cap Growth 1.32%
- -------------------------------------------------
AXA Premier VIP Large Cap Value 1.28%
- -------------------------------------------------
AXA Premier VIP Small/Mid Cap Growth 1.46%
- -------------------------------------------------
AXA Premier VIP Small/Mid Cap Value 1.52%
- -------------------------------------------------
AXA Premier VIP Technology 1.70%
- -------------------------------------------------
EQ/Alliance Common Stock 0.77%
- -------------------------------------------------
EQ/Alliance Growth and Income 0.85%
- -------------------------------------------------
EQ/Alliance Premier Growth 1.15%
- -------------------------------------------------
EQ/Alliance Small Cap Growth 1.03%
- -------------------------------------------------
EQ/Calvert Socially Responsible 1.00%
- -------------------------------------------------
EQ/Capital Guardian International 1.18%
- -------------------------------------------------
EQ/Capital Guardian Research 0.93%
- -------------------------------------------------
EQ/Capital Guardian U.S. Equity 0.93%
- -------------------------------------------------
EQ/Emerging Markets Equity 1.78%
- -------------------------------------------------
EQ/Evergreen Omega 0.84%
- -------------------------------------------------
EQ/FI Mid Cap 0.88%
- -------------------------------------------------
EQ/FI Small/Mid Cap Value 1.04%
- -------------------------------------------------
EQ/Lazard Small Cap Value 1.00%
- -------------------------------------------------
EQ/Marsico Focus 1.10%
- -------------------------------------------------
EQ/Mercury Basic Value Equity 0.91%
- -------------------------------------------------
EQ/Mercury International Value 1.18%
- -------------------------------------------------
EQ/MFS Emerging Growth Companies 0.96%
- -------------------------------------------------
EQ/MFS Investors Trust 0.94%
- -------------------------------------------------
EQ/Putnam Growth & Income Value 0.93%
- -------------------------------------------------
EQ/Putnam Voyager 0.93%
- -------------------------------------------------
EQ/Technology 1.01%
- -------------------------------------------------
EXAMPLE
This example is intended to help you compare the cost of investing in the
contract with the cost of investing in other variable annuity contracts. These
costs include contract owner transaction expenses, contract fees, separate
account annual expenses, and underlying trust fees and expenses (including the
underlying portfolio fees and expenses).
The example below shows the expenses that a hypothetical contract owner (who
has elected the Living Benefit with the enhanced death benefit that provides
for the greater of the 6% Roll-up or the Annual Ratchet to age 85 and
Protection Plus) would pay in the situations illustrated. 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 $2.10 per $10,000.
The fixed maturity options, guaranteed interest option and the account for
special dollar cost averaging are not covered by the examples. However, the
annual administrative charge, the withdrawal charge, the charge for any
optional benefits and the charge if you elect a Variable Immediate Annuity
payout option do apply to the fixed maturity options, guaranteed interest
option and the account for special dollar cost averaging. 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.
The example assumes that you invest $10,000 in the contract for the time
periods indicated. The example also assumes that your investment has a 5%
return each year. This example should not be considered a representation of
past or future expenses for each option. Similarly, the annual rate of return
assumed in the example is not an estimate or guarantee of future investment
performance. Although your actual costs may be higher or lower, based on these
assumptions, your costs would be:
14 Fee table
- ----------------------------------------------------------------------------------------------------------
If you surrender your contract at the end of the
applicable time period
- ----------------------------------------------------------------------------------------------------------
Portfolio Name 1 year 3 years 5 years 10 years
- ----------------------------------------------------------------------------------------------------------
AXA PREMIER VIP TRUST:
- ----------------------------------------------------------------------------------------------------------
AXA Aggressive Allocation $ 1,763.02 $ 3,655.94 $ 5,384.53 $ 8,830.72
AXA Conservative Allocation $ 2,065.98 $ 4,406.44 $ 6,405.15 $ 9,963.54
AXA Conservative-Plus Allocation $ 1,554.91 $ 3,110.62 $ 4,597.45 $ 7,787.89
AXA Moderate Allocation $ 1,160.47 $ 2,008.48 $ 2,894.14 $ 5,036.35
AXA Moderate-Plus Allocation $ 1,333.59 $ 2,503.44 $ 3,677.40 $ 6,385.03
AXA Premier VIP Aggressive Equity $ 1,099.20 $ 1,829.03 $ 2,602.92 $ 4,498.95
AXA Premier VIP Core Bond $ 1,108.65 $ 1,856.85 $ 2,648.31 $ 4,583.99
AXA Premier VIP Health Care $ 1,194.73 $ 2,107.84 $ 3,053.73 $ 5,322.60
AXA Premier VIP High Yield $ 1,097.10 $ 1,822.84 $ 2,592.80 $ 4,479.94
AXA Premier VIP International Equity $ 1,205.23 $ 2,138.15 $ 3,102.18 $ 5,408.33
AXA Premier VIP Large Cap Core Equity $ 1,167.43 $ 2,028.74 $ 2,926.77 $ 5,095.35
AXA Premier VIP Large Cap Growth $ 1,157.99 $ 2,001.25 $ 2,882.48 $ 5,015.20
AXA Premier VIP Large Cap Value $ 1,157.99 $ 2,001.25 $ 2,882.48 $ 5,015.20
AXA Premier VIP Small/Mid Cap Growth $ 1,170.58 $ 2,037.89 $ 2,941.49 $ 5,121.89
AXA Premier VIP Small/Mid Cap Value $ 1,166.38 $ 2,025.69 $ 2,921.86 $ 5,086.48
AXA Premier VIP Technology $ 1,231.47 $ 2,213.63 $ 3,222.35 $ 5,618.68
- -----------------------------------------------------------------------------------------------------------
EQ ADVISORS TRUST:
- -----------------------------------------------------------------------------------------------------------
EQ/Alliance Common Stock $ 1,075.05 $ 1,757.69 $ 2,486.09 $ 4,277.91
EQ/Alliance Growth and Income $ 1,084.50 $ 1,785.65 $ 2,531.95 $ 4,365.04
EQ/Alliance Intermediate Government Securities $ 1,078.20 $ 1,767.02 $ 2,501.40 $ 4,307.05
EQ/Alliance International $ 1,109.70 $ 1,859.94 $ 2,653.34 $ 4,593.39
EQ/Alliance Premier Growth $ 1,118.09 $ 1,884.61 $ 2,693.53 $ 4,668.23
EQ/Alliance Quality Bond $ 1,079.25 $ 1,770.12 $ 2,506.49 $ 4,316.74
EQ/Alliance Small Cap Growth $ 1,104.45 $ 1,844.49 $ 2,628.16 $ 4,546.29
EQ/Bernstein Diversified Value $ 1,091.85 $ 1,807.36 $ 2,567.49 $ 4,432.24
EQ/Calvert Socially Responsible $ 1,144.34 $ 1,961.46 $ 2,818.19 $ 4,898.07
EQ/Capital Guardian International $ 1,129.64 $ 1,918.47 $ 2,748.55 $ 4,770.11
EQ/Capital Guardian Research $ 1,093.95 $ 1,813.55 $ 2,577.62 $ 4,451.35
EQ/Capital Guardian U.S. Equity $ 1,093.95 $ 1,813.55 $ 2,577.62 $ 4,451.35
EQ/Emerging Markets Equity $ 1,181.08 $ 2,068.35 $ 2,990.43 $ 5,209.76
EQ/Equity 500 Index $ 1,050.91 $ 1,686.01 $ 2,368.08 $ 4,051.48
EQ/Evergreen Omega $ 1,112.85 $ 1,869.19 $ 2,668.43 $ 4,621.53
EQ/FI Mid Cap $ 1,100.25 $ 1,832.12 $ 2,607.97 $ 4,508.44
EQ/FI Small/Mid Cap Value $ 1,107.60 $ 1,853.76 $ 2,643.28 $ 4,574.58
EQ/J.P. Morgan Core Bond $ 1,072.95 $ 1,751.47 $ 2,475.88 $ 4,258.44
EQ/Janus Large Cap Growth $ 1,122.29 $ 1,896.94 $ 2,713.57 $ 4,705.42
EQ/Lazard Small Cap Value $ 1,107.60 $ 1,853.76 $ 2,643.28 $ 4,574.58
EQ/Marsico Focus $ 1,120.19 $ 1,890.78 $ 2,703.55 $ 4,686.85
EQ/Mercury Basic Value Equity $ 1,088.70 $ 1,798.06 $ 2,552.27 $ 4,403.50
EQ/Mercury International Value $ 1,124.39 $ 1,903.09 $ 2,723.57 $ 4,723.95
EQ/MFS Emerging Growth Companies $ 1,093.95 $ 1,813.55 $ 2,577.62 $ 4,451.35
EQ/MFS Investors Trust $ 1,092.90 $ 1,810.45 $ 2,572.55 $ 4,441.80
- ----------------------------------------------------------------------------------------------------------
- -------------------------------------------------------------------------------------------------------------
If you annuitize at the end of the
applicable time period
- -------------------------------------------------------------------------------------------------------------
Portfolio Name 1 year 3 years 5 years 10 years
- -------------------------------------------------------------------------------------------------------------
AXA PREMIER VIP TRUST:
- -------------------------------------------------------------------------------------------------------------
AXA Aggressive Allocation $ 1,413.02 $ 3,405.94 $ 5,234.53 $ 9,180.72
AXA Conservative Allocation $ 1,715.98 $ 4,156.44 $ 6,255.15 $ 10,313.54
AXA Conservative-Plus Allocation $ 1,204.91 $ 2,860.62 $ 4,447.45 $ 8,137.89
AXA Moderate Allocation $ 810.47 $ 1,758.48 $ 2,744.14 $ 5,386.35
AXA Moderate-Plus Allocation $ 983.59 $ 2,253.44 $ 3,527.40 $ 6,735.03
AXA Premier VIP Aggressive Equity $ 749.20 $ 1,579.03 $ 2,452.92 $ 4,848.95
AXA Premier VIP Core Bond $ 758.65 $ 1,606.85 $ 2,498.31 $ 4,933.99
AXA Premier VIP Health Care $ 844.73 $ 1,857.84 $ 2,903.73 $ 5,672.60
AXA Premier VIP High Yield $ 747.10 $ 1,572.84 $ 2,442.80 $ 4,829.94
AXA Premier VIP International Equity $ 855.23 $ 1,888.15 $ 2,952.18 $ 5,758.33
AXA Premier VIP Large Cap Core Equity $ 817.43 $ 1,778.74 $ 2,776.77 $ 5,445.35
AXA Premier VIP Large Cap Growth $ 807.99 $ 1,751.25 $ 2,732.48 $ 5,365.20
AXA Premier VIP Large Cap Value $ 807.99 $ 1,751.25 $ 2,732.48 $ 5,365.20
AXA Premier VIP Small/Mid Cap Growth $ 820.58 $ 1,787.89 $ 2,791.49 $ 5,471.89
AXA Premier VIP Small/Mid Cap Value $ 816.38 $ 1,775.69 $ 2,771.86 $ 5,436.48
AXA Premier VIP Technology $ 881.47 $ 1,963.63 $ 3,072.35 $ 5,968.68
- -------------------------------------------------------------------------------------------------------------
EQ ADVISORS TRUST:
- -------------------------------------------------------------------------------------------------------------
EQ/Alliance Common Stock $ 725.05 $ 1,507.69 $ 2,336.09 $ 4,627.91
EQ/Alliance Growth and Income $ 734.50 $ 1,535.65 $ 2,381.95 $ 4,715.04
EQ/Alliance Intermediate Government Securities $ 728.20 $ 1,517.02 $ 2,351.40 $ 4,657.05
EQ/Alliance International $ 759.70 $ 1,609.94 $ 2,503.34 $ 4,943.39
EQ/Alliance Premier Growth $ 768.09 $ 1,634.61 $ 2,543.53 $ 5,018.23
EQ/Alliance Quality Bond $ 729.25 $ 1,520.12 $ 2,356.49 $ 4,666.74
EQ/Alliance Small Cap Growth $ 754.45 $ 1,594.49 $ 2,478.16 $ 4,896.29
EQ/Bernstein Diversified Value $ 741.85 $ 1,557.36 $ 2,417.49 $ 4,782.24
EQ/Calvert Socially Responsible $ 794.34 $ 1,711.46 $ 2,668.19 $ 5,248.07
EQ/Capital Guardian International $ 779.64 $ 1,668.47 $ 2,598.55 $ 5,120.11
EQ/Capital Guardian Research $ 743.95 $ 1,563.55 $ 2,427.62 $ 4,801.35
EQ/Capital Guardian U.S. Equity $ 743.95 $ 1,563.55 $ 2,427.62 $ 4,801.35
EQ/Emerging Markets Equity $ 831.08 $ 1,818.35 $ 2,840.43 $ 5,559.76
EQ/Equity 500 Index $ 700.91 $ 1,436.01 $ 2,218.08 $ 4,401.48
EQ/Evergreen Omega $ 762.85 $ 1,619.19 $ 2,518.43 $ 4,971.53
EQ/FI Mid Cap $ 750.25 $ 1,582.12 $ 2,457.97 $ 4,858.44
EQ/FI Small/Mid Cap Value $ 757.60 $ 1,603.76 $ 2,493.28 $ 4,924.58
EQ/J.P. Morgan Core Bond $ 722.95 $ 1,501.47 $ 2,325.88 $ 4,608.44
EQ/Janus Large Cap Growth $ 772.29 $ 1,646.94 $ 2,563.57 $ 5,055.42
EQ/Lazard Small Cap Value $ 757.60 $ 1,603.76 $ 2,493.28 $ 4,924.58
EQ/Marsico Focus $ 770.19 $ 1,640.78 $ 2,553.55 $ 5,036.85
EQ/Mercury Basic Value Equity $ 738.70 $ 1,548.06 $ 2,402.27 $ 4,753.50
EQ/Mercury International Value $ 774.39 $ 1,653.09 $ 2,573.57 $ 5,073.95
EQ/MFS Emerging Growth Companies $ 743.95 $ 1,563.55 $ 2,427.62 $ 4,801.35
EQ/MFS Investors Trust $ 742.90 $ 1,560.45 $ 2,422.55 $ 4,791.80
- -------------------------------------------------------------------------------------------------------------
- -------------------------------------------------------------------------------------------------------------
If you do not surrender your contract at the end of the
applicable time period
- -------------------------------------------------------------------------------------------------------------
Portfolio Name 1 year 3 years 5 years 10 years
- -------------------------------------------------------------------------------------------------------------
AXA PREMIER VIP TRUST:
- -------------------------------------------------------------------------------------------------------------
AXA Aggressive Allocation $ 1,063.02 $ 3,055.94 $ 4,884.53 $ 8,830.72
AXA Conservative Allocation $ 1,365.98 $ 3,806.44 $ 5,905.15 $ 9,963.54
AXA Conservative-Plus Allocation $ 854.91 $ 2,510.62 $ 4,097.45 $ 7,787.89
AXA Moderate Allocation $ 460.47 $ 1,408.48 $ 2,394.14 $ 5,036.35
AXA Moderate-Plus Allocation $ 633.59 $ 1,903.44 $ 3,177.40 $ 6,385.03
AXA Premier VIP Aggressive Equity $ 399.20 $ 1,229.03 $ 2,102.92 $ 4,498.95
AXA Premier VIP Core Bond $ 408.65 $ 1,256.85 $ 2,148.31 $ 4,583.99
AXA Premier VIP Health Care $ 494.73 $ 1,507.84 $ 2,553.73 $ 5,322.60
AXA Premier VIP High Yield $ 397.10 $ 1,222.84 $ 2,092.80 $ 4,479.94
AXA Premier VIP International Equity $ 505.23 $ 1,538.15 $ 2,602.18 $ 5,408.33
AXA Premier VIP Large Cap Core Equity $ 467.43 $ 1,428.74 $ 2,426.77 $ 5,095.35
AXA Premier VIP Large Cap Growth $ 457.99 $ 1,401.25 $ 2,382.48 $ 5,015.20
AXA Premier VIP Large Cap Value $ 457.99 $ 1,401.25 $ 2,382.48 $ 5,015.20
AXA Premier VIP Small/Mid Cap Growth $ 470.58 $ 1,437.89 $ 2,441.49 $ 5,121.89
AXA Premier VIP Small/Mid Cap Value $ 466.38 $ 1,425.69 $ 2,421.86 $ 5,086.48
AXA Premier VIP Technology $ 531.47 $ 1,613.63 $ 2,722.35 $ 5,618.68
- -------------------------------------------------------------------------------------------------------------
EQ ADVISORS TRUST:
- -------------------------------------------------------------------------------------------------------------
EQ/Alliance Common Stock $ 375.05 $ 1,157.69 $ 1,986.09 $ 4,277.91
EQ/Alliance Growth and Income $ 384.50 $ 1,185.65 $ 2,031.95 $ 4,365.04
EQ/Alliance Intermediate Government Securities $ 378.20 $ 1,167.02 $ 2,001.40 $ 4,307.05
EQ/Alliance International $ 409.70 $ 1,259.94 $ 2,153.34 $ 4,593.39
EQ/Alliance Premier Growth $ 418.09 $ 1,284.61 $ 2,193.53 $ 4,668.23
EQ/Alliance Quality Bond $ 379.25 $ 1,170.12 $ 2,006.49 $ 4,316.74
EQ/Alliance Small Cap Growth $ 404.45 $ 1,244.49 $ 2,128.16 $ 4,546.29
EQ/Bernstein Diversified Value $ 391.85 $ 1,207.36 $ 2,067.49 $ 4,432.24
EQ/Calvert Socially Responsible $ 444.34 $ 1,361.46 $ 2,318.19 $ 4,898.07
EQ/Capital Guardian International $ 429.64 $ 1,318.47 $ 2,248.55 $ 4,770.11
EQ/Capital Guardian Research $ 393.95 $ 1,213.55 $ 2,077.62 $ 4,451.35
EQ/Capital Guardian U.S. Equity $ 393.95 $ 1,213.55 $ 2,077.62 $ 4,451.35
EQ/Emerging Markets Equity $ 481.08 $ 1,468.35 $ 2,490.43 $ 5,209.76
EQ/Equity 500 Index $ 350.91 $ 1,086.01 $ 1,868.08 $ 4,051.48
EQ/Evergreen Omega $ 412.85 $ 1,269.19 $ 2,168.43 $ 4,621.53
EQ/FI Mid Cap $ 400.25 $ 1,232.12 $ 2,107.97 $ 4,508.44
EQ/FI Small/Mid Cap Value $ 407.60 $ 1,253.76 $ 2,143.28 $ 4,574.58
EQ/J.P. Morgan Core Bond $ 372.95 $ 1,151.47 $ 1,975.88 $ 4,258.44
EQ/Janus Large Cap Growth $ 422.29 $ 1,296.94 $ 2,213.57 $ 4,705.42
EQ/Lazard Small Cap Value $ 407.60 $ 1,253.76 $ 2,143.28 $ 4,574.58
EQ/Marsico Focus $ 420.19 $ 1,290.78 $ 2,203.55 $ 4,686.85
EQ/Mercury Basic Value Equity $ 388.70 $ 1,198.06 $ 2,052.27 $ 4,403.50
EQ/Mercury International Value $ 424.39 $ 1,303.09 $ 2,223.57 $ 4,723.95
EQ/MFS Emerging Growth Companies $ 393.95 $ 1,213.55 $ 2,077.62 $ 4,451.35
EQ/MFS Investors Trust $ 392.90 $ 1,210.45 $ 2,072.55 $ 4,441.80
- -------------------------------------------------------------------------------------------------------------
Fee table 15
- -----------------------------------------------------------------------------------------------------------
If you surrender your contract at the end of the
applicable time period
- -----------------------------------------------------------------------------------------------------------
Portfolio Name 1 year 3 years 5 years 10 years
- -----------------------------------------------------------------------------------------------------------
EQ ADVISORS TRUST:
- -----------------------------------------------------------------------------------------------------------
EQ/Money Market $ 1,059.31 $ 1,710.98 $ 2,409.26 $ 4,130.86
EQ/Putnam Growth & Income Value $ 1,091.85 $ 1,807.36 $ 2,567.49 $ 4,432.24
EQ/Putnam Voyager $ 1,100.25 $ 1,832.12 $ 2,607.97 $ 4,508.44
EQ/Small Company Index $ 1,081.35 $ 1,776.34 $ 2,516.68 $ 4,336.09
EQ/Technology $ 1,122.29 $ 1,896.94 $ 2,713.57 $ 4,705.42
- -----------------------------------------------------------------------------------------------------------
BARR ROSENBERG VARIABLE INSURANCE TRUST:
- -----------------------------------------------------------------------------------------------------------
Laudus Rosenberg VIT Value Long/Short Equity $ 1,784.70 $ 3,711.34 $ 5,462.37 $ 8,925.91
- -----------------------------------------------------------------------------------------------------------
THE UNIVERSAL INSTITUTIONAL FUNDS, INC.:
- -----------------------------------------------------------------------------------------------------------
U.S. Real Estate -- Class II $ 1,145.39 $ 1,964.52 $ 2,823.15 $ 4,907.14
- -----------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------
If you annuitize at the end of the
applicable time period
Portfolio Name 1 year 3 years 5 years 10 years
- ---------------------------------------------------------------------------------------------------------
EQ ADVISORS TRUST:
- ---------------------------------------------------------------------------------------------------------
EQ/Money Market $ 709.31 $ 1,460.98 $ 2,259.26 $ 4,480.86
EQ/Putnam Growth & Income Value $ 741.85 $ 1,557.36 $ 2,417.49 $ 4,782.24
EQ/Putnam Voyager $ 750.25 $ 1,582.12 $ 2,457.97 $ 4,858.44
EQ/Small Company Index $ 731.35 $ 1,526.34 $ 2,366.68 $ 4,686.09
EQ/Technology $ 772.29 $ 1,646.94 $ 2,563.57 $ 5,055.42
- ---------------------------------------------------------------------------------------------------------
BARR ROSENBERG VARIABLE INSURANCE TRUST:
- ---------------------------------------------------------------------------------------------------------
Laudus Rosenberg VIT Value Long/Short Equity $ 1,434.70 $ 3,461.34 $ 5,312.37 $ 9,275.91
- ---------------------------------------------- ----------------------------------------------------------
THE UNIVERSAL INSTITUTIONAL FUNDS, INC.:
- ---------------------------------------------------------------------------------------------------------
U.S. Real Estate -- Class II $ 795.39 $ 1,714.52 $ 2,673.15 $ 5,257.14
- ---------------------------------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------------------
If you do not surrender your contract at the end of the
applicable time period
- ----------------------------------------------------------------------------------------------------------
Portfolio Name 1 year 3 years 5 years 10 years
- ----------------------------------------------------------------------------------------------------------
EQ ADVISORS TRUST:
- ----------------------------------------------------------------------------------------------------------
EQ/Money Market $ 359.31 $ 1,110.98 $ 1,909.26 $ 4,130.86
EQ/Putnam Growth & Income Value $ 391.85 $ 1,207.36 $ 2,067.49 $ 4,432.24
EQ/Putnam Voyager $ 400.25 $ 1,232.12 $ 2,107.97 $ 4,508.44
EQ/Small Company Index $ 381.35 $ 1,176.34 $ 2,016.68 $ 4,336.09
EQ/Technology $ 422.29 $ 1,296.94 $ 2,213.57 $ 4,705.42
- ----------------------------------------------------------------------------------------------------------
BARR ROSENBERG VARIABLE INSURANCE TRUST:
- ----------------------------------------------------------------------------------------------------------
Laudus Rosenberg VIT Value Long/Short Equity $ 1,084.70 $ 3,111.34 $ 4,962.37 $ 8,925.91
- ----------------------------------------------------------------------------------------------------------
THE UNIVERSAL INSTITUTIONAL FUNDS, INC.:
- ----------------------------------------------------------------------------------------------------------
U.S. Real Estate -- Class II $ 445.39 $ 1,364.52 $ 2,323.15 $ 4,907.14
- ----------------------------------------------------------------------------------------------------------
16 Fee table
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 periods shown for each of the
variable investment options available as of December 31, 2003.
Fee table 17
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 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.
We may refuse to accept any contribution if the sum of all contributions under
all Equitable Accumulator(R) series contracts with the same annuitant would
then total more than $1,500,000. We reserve the right to limit aggregate
contributions made after the first contract year to 150% of first-year
contributions. 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. We may accept less than the minimum
initial contribution under a contract if an aggregate amount of contracts
purchased at the same time by an individual (including spouse) meets the
minimum.
- --------------------------------------------------------------------------------
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
Contract type issue ages contributions Source of contributions Limitations on contributions
- -----------------------------------------------------------------------------------------------------------------------------------
NQ 0 through 85 o $5,000 (initial) o After-tax money. o For annuitants up to age 83
at contract issue, no addi-
o $500 (additional) o Paid to us by check or tional contributions may be
transfer of contract value in made after attainment of
a tax-deferred exchange age 84 or, if later, the first
under Section 1035 of the contract anniversary.
Internal Revenue Code.
o For annuitants age 84 and
older at contract issue,
additional contributions may
be made up to one year
from contract issue.
- ------------------------------------------------------------------------------------------------------------------------------------
18 Contract features and benefits
- ------------------------------------------------------------------------------------------------------------------------------------
Available
for annuitant Minimum
Contract type issue ages contributions Source of contributions Limitations on contributions
- ------------------------------------------------------------------------------------------------------------------------------------
Rollover IRA 20 through 85 o $5,000 (initial) o Eligible rollover distribu- o For annuitants up to age 83
tions from TSA contracts or at contract issue, no addi-
o $50 (additional) other 403(b) arrangements, tional contributions may be
qualified plans, and govern- made after attainment of
mental employer 457(b) age 84 or, if later, the first
plans. contract anniversary.
o Rollovers from another o For annuitants age 84 and
traditional individual retire- older at contract issue, addi-
ment arrangement. tional contributions may be
made up to one year from
o Direct custodian-to- contract issue.
custodian transfers from
another traditional indi- o Contributions after age 70-1/2
vidual retirement must be net of required
arrangement. minimum distributions.
o Regular IRA contributions. o Although we accept regular
IRA contributions (limited to
o Additional "catch-up" con- $3,000 for 2004 and
tributions. $4,000 for 2005) under
rollover IRA contracts, we
intend that this contract be
used primarily for rollover
and direct transfer
contributions.
o Additional catch-up contri-
butions of up to $500 can
be made for the calendar
year 2004 or 2005 where
the owner is at least age 50
but under age 70-1/2 at any
time during the calendar
year for which the contribu-
tion is made.
- -----------------------------------------------------------------------------------------------------------------------------------
Contract features and benefits 19
- -----------------------------------------------------------------------------------------------------------
Available
for annuitant Minimum
Contract type issue ages contributions
- ------------------------------------------------------------------------------------------------------------
Roth Conversion 20 through 85 o $5,000 (initial)
IRA
o $50 (additional)
- -----------------------------------------------------------------------------------------------------------
Contract type Source of contributions Limitations on contributions
- -----------------------------------------------------------------------------------------------------------
Roth Conversion o Rollovers from another o For annuitants up to age 83
IRA Roth IRA. at contract issue, no addi-
tional contributions may be
o Conversion rollovers from a made after attainment of
traditional IRA. age 84, or, if later, the first
contract anniversary.
o Direct transfers from
another Roth IRA. o For annuitants age 84 and
older at contract issue, addi-
o Regular Roth IRA tional contributions may be
contributions. made up to one year from
contract issue.
o Additional catch-up contri-
butions. o Conversion rollovers after
age 70-1/2 must be net of
required minimum distribu-
tions for the traditional IRA
you are rolling over.
o You cannot roll over funds
from a traditional IRA if your
adjusted gross income is
$100,000 or more.
o Although we accept regular
Roth IRA contributions (lim-
ited to $3,000 for 2004 and
$4,000 for 2005) under
Roth IRA contracts, we
intend that this contract be
used primarily for rollover
and direct transfer
contributions.
o Additional catch-up contri-
butions of up to $500 can
be made for the calendar
year 2004 or 2005 where
the owner is at least age 50
at any time during the calen-
dar year for which the
contribution is made.
----------------------------------------------------------------------------------------------------------
20 Contract features and benefits
- --------------------------------------------------------------------------------------------------
Available
for annuitant Minimum
Contract type issue ages contributions
- --------------------------------------------------------------------------------------------------
Rollover TSA 20 through 85 o $5,000 (initial)
o $500 (additional)
- ---------------------------------------------------------------------------------------------------
QP 20 through 75 o $5,000 (initial)
o $500 (additional)
See Appendix II at the end of this Prospectus for a discussion of
purchase considerations of QP contracts.
- ---------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------
Contract type Source of contributions Limitations on contributions
- ---------------------------------------------------------------------------------------------------
Rollover TSA o Direct transfers of pre-tax o For annuitants up to age 83
funds from another contract at contract issue, no addi-
or arrangement under Sec- tional contributions may be
tion 403(b) of the Internal made after attainment of
Revenue Code, complying age 84, or, if later, the first
with IRS Revenue Ruling contract anniversary.
90-24.
o For annuitants age 84 and
o Eligible rollover distribu- older at contract issue, addi-
tions of pre-tax funds from tional contributions may be
other 403(b) plans. Subse- made up to one year from
quent contributions may contract issue.
also be rollovers from quali-
fied plans, governmental o Rollover or direct transfer
employer 457(b) plans and contributions after age 70-1/2
traditional IRAs. must be net of any required
minimum distributions.
o We do not accept employer-
remitted contributions.
- ---------------------------------------------------------------------------------------------------
QP o Only transfer contributions o We do not accept regular
from an existing defined ongoing payroll
contribution qualified plan contributions.
trust.
o Only one additional transfer
o The plan must be qualified contribution may be made
under Section 401(a) of the during a contract year.
Internal Revenue Code.
o No additional transfer con-
o For 401(k) plans, trans- tributions after the
ferred contributions may attainment of age 76 or, if
only include employee pre- later, the first contract
tax contributions. anniversary.
o Contributions after age 70-1/2
must be net of any required
minimum distributions.
o A separate QP contract must
be established for each plan
participant.
o We do not accept employer-
remitted contributions.
o We do not accept contribu-
tions from defined benefit
plans.
See Appendix II at the end of this Prospectus for a discussion of purchase
considerations of QP contracts.
- ---------------------------------------------------------------------------------------------------
Contract features and benefits 21
- ----------------------------------------------------------------------------------------------------
Available
for annuitant Minimum
Contract type issue ages contributions
- ----------------------------------------------------------------------------------------------------
Flexible Premium 20 through 70 o $2,000 (initial)
IRA
o $50 (additional)
- ----------------------------------------------------------------------------------------------------
Contract type Source of contributions Limitations on contributions
- ----------------------------------------------------------------------------------------------------
Flexible Premium o Regular traditional IRA o No regular IRA contributions
IRA contributions. in the calendar year you turn
age 70-1/2 and thereafter.
o Additional catch-up
contributions. o Rollover and direct transfer
contributions may be made
o Eligible rollover distribu- up to the attainment of age
tions from TSA contracts or 84.
other 403(b) arrangements,
qualified plans, and govern- o Regular contributions may
mental employer 457(b) not exceed $3,000 for 2004
plans. or $4,000 for 2005.
o Rollovers from another o Rollover and direct transfer
traditional individual retire- contributions after age 70-1/2
ment arrangement. must be net of required
minimum distributions.
o Direct custodian-
to-custodian transfers from o Although we accept rollover
another traditional indi- and direct transfer contribu-
vidual retirement tions under the Flexible
arrangement. Premium IRA contract, we
intend that this contract be
used for ongoing regular
contributions.
o Additional catch-up contri-
butions of up to $500 can
be made for the calendar
year 2004 or 2005 where
the owner is at least age 50
but under age 70-1/2 at any
time during the calendar
year for which the contribu-
tion is made.
- ----------------------------------------------------------------------------------------------------
22 Contract features and benefits
- ------------------------------------------------------------------------------------------------------------
Available
for annuitant Minimum
Contract type issue ages contributions
- ------------------------------------------------------------------------------------------------------------
Flexible Premium 20 through 85 o $2,000 (initial)
Roth IRA
o $50 (additional)
- ------------------------------------------------------------------------------------------------------------
Inherited IRA 0-70 o $5,000 (initial)
Beneficiary Con- o $1,000 (additional)
tinuation
Contract (tradi-
tional IRA or
Roth IRA)
- ----------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------
Contract type Source of contributions Limitations on contributions
- ------------------------------------------------------------------------------------------------------------
Flexible Premium o Regular after-tax o For annuitants up to age 83
Roth IRA contributions. at contract issue, no addi-
tional contributions may be
o Additional catch-up made after the attainment
contributions. of age 84, or, if later, the first
contract anniversary.
o Rollovers from another o For annuitants age 84 and
Roth IRA. older at contract issue addi-
tional contributions may be
made up to one year from
o Conversion rollovers from a contract issue.
traditional IRA.
o Regular Roth IRA contribu-
o Direct transfers from tions may not exceed
another Roth IRA. $3,000 for 2004 or $4,000
for 2005.
o Contributions are subject to
income limits and other tax
rules.
o Although we accept rollover
and direct transfer contribu-
tions under the Flexible
Premium Roth IRA contract,
we intend that this contract
be used for ongoing regular
Roth IRA contributions.
o Additional catch-up contri-
butions of up to $500 can
be made for the calendar
year 2004 or 2005 where
the owner is at least age 50
at any time during the calen-
dar year for which the
contribution is made.
- -----------------------------------------------------------------------------------------------------------
Inherited IRA o (If contract is traditional o Any additional contributions
Beneficiary Con- IRA) Direct custodian-to- must be from same type of
tinuation custodian transfers of your IRA of same deceased
Contract (tradi- interest as death beneficiary owner.
tional IRA or of the deceased owner's
Roth IRA) traditional individual retire-
ment arrangement.
o (If contract is Roth IRA)
Direct custodian-to-
custodian transfers of your
interest as death beneficiary
of the deceased owner's
Roth IRA.
- ------------------------------------------------------------------------------------------------------------
See "Tax information" later in this Prospectus and in the SAI for a more
detailed discussion of sources of contributions and certain contribution
limitations. For information on when contributions are credited under your
contract see "Dates and prices at which contract events occur" in "More
information" later in this Prospectus.
Contract features and benefits 23
OWNER AND ANNUITANT REQUIREMENTS
Under NQ contracts, the annuitant can be different from 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. In general, we
will not permit a contract to be owned by a minor unless it is pursuant to the
Uniform Gift to Minors Act or the Uniform Transfers to Minors Act in your
state.
Under all IRA and Rollover TSA contracts, the owner and annuitant must be the
same person. In some cases, an IRA contract may be held in a custodial
individual retirement account for the benefit of the individual annuitant. This
option may not be available under your contract. See "Inherited IRA beneficiary
continuation contract" later in this section for Inherited IRA owner and
annuitant requirements.
Under QP contracts, the owner must be the trustee of the qualified plan and the
annuitant must be the plan participant/employee. See Appendix II at the end of
this Prospectus for more information on QP contracts.
- --------------------------------------------------------------------------------
A "participant" is an individual who is currently, or was formerly,
participating in an eligible employer's qualified plan or TSA plan.
- --------------------------------------------------------------------------------
HOW YOU CAN MAKE YOUR CONTRIBUTIONS
Except as noted below, contributions must be 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.
For your convenience, we will accept initial and additional contributions by
wire transmittal from certain broker-dealers who have agreements with us for
this purpose, including circumstances under which such contributions are
considered received by us when your order is taken by such broker-dealers.
Additional contributions may also be made under our automatic investment
program. These methods of payment are 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 payments. 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.
- --------------------------------------------------------------------------------
Our "business day" is generally any day the New York Stock Exchange is open for
trading and generally ends at 4:00 p.m. Eastern Time. A business day does not
include a 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, the fixed maturity options and the account for special dollar
cost averaging.
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/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, the fixed maturity options and the account for special dollar
cost averaging.
- --------------------------------------------------------------------------------
24 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 the Accumulator(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.
Equitable Life serves as the investment manager of the Portfolios of the EQ
Advisors Trust and the AXA Premier VIP Trust. 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. The
advisers for these Portfolios, listed in the chart below, are those who make
the investment decisions for each Portfolio. The chart also
indicates the investment manager for each of the other Portfolios.
- -----------------------------------------------------------------------------------------------
AXA Premier VIP Trust
Portfolio Name Objective
- -----------------------------------------------------------------------------------------------
AXA AGGRESSIVE ALLOCATION Seeks long-term capital appreciation.
- -----------------------------------------------------------------------------------------------
AXA CONSERVATIVE ALLOCATION Seeks a high level of current income.
- -----------------------------------------------------------------------------------------------
AXA CONSERVATIVE-PLUS Seeks current income and growth of capital, with a
ALLOCATION greater emphasis on current income.
- -----------------------------------------------------------------------------------------------
AXA MODERATE ALLOCATION Seeks long-term capital appreciation and current income.
- -----------------------------------------------------------------------------------------------
AXA MODERATE-PLUS Seeks long-term capital appreciation and current income,
ALLOCATION with a greater emphasis on capital appreciation.
- -----------------------------------------------------------------------------------------------
AXA PREMIER VIP AGGRESSIVE Seeks long-term growth of capital.
EQUITY
- -----------------------------------------------------------------------------------------------
AXA PREMIER VIP CORE BOND Seeks a balance of high current income and capital
appreciation, consistent with a prudent level of risk.
- -----------------------------------------------------------------------------------------------
AXA PREMIER VIP HEALTH CARE Seeks long-term growth of capital.
- -----------------------------------------------------------------------------------------------
AXA PREMIER VIP HIGH YIELD Seeks high total return through a combination of current
income and capital appreciation.
- -----------------------------------------------------------------------------------------------
AXA PREMIER VIP Seeks long-term growth of capital.
INTERNATIONAL EQUITY
- -----------------------------------------------------------------------------------------------
AXA PREMIER VIP LARGE CAP Seeks long-term growth of capital.
CORE EQUITY
- -----------------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------
Portfolio Name Adviser(s)
- -----------------------------------------------------------------------------------------------
AXA AGGRESSIVE ALLOCATION o Equitable Life
- -----------------------------------------------------------------------------------------------
AXA CONSERVATIVE ALLOCATION o Equitable Life
- -----------------------------------------------------------------------------------------------
AXA CONSERVATIVE-PLUS o Equitable Life
ALLOCATION
- -----------------------------------------------------------------------------------------------
AXA MODERATE ALLOCATION o Equitable Life
- -----------------------------------------------------------------------------------------------
AXA MODERATE-PLUS o Equitable Life
ALLOCATION
- -----------------------------------------------------------------------------------------------
AXA PREMIER VIP AGGRESSIVE o Alliance Capital Management L.P.
EQUITY o MFS Investment Management
o Marsico Capital Management, LLC
o Provident Investment Counsel, Inc.
- -----------------------------------------------------------------------------------------------
AXA PREMIER VIP CORE BOND o BlackRock Advisors, Inc.
o Pacific Investment Management Company
LLC
- -----------------------------------------------------------------------------------------------
AXA PREMIER VIP HEALTH CARE o A I M Capital Management, Inc.
o RCM Capital Management LLC
o Wellington Management Company, LLP
- -----------------------------------------------------------------------------------------------
AXA PREMIER VIP HIGH YIELD o Alliance Capital Management L.P.
o Pacific Investment Management Company
LLC
- -----------------------------------------------------------------------------------------------
AXA PREMIER VIP o Alliance Capital Management L.P., through its
INTERNATIONAL EQUITY Bernstein Investment Research and Manage-
ment Unit
o Bank of Ireland Asset Management
(U.S.) Limited
o Marsico Capital Management, LLC
- -----------------------------------------------------------------------------------------------
AXA PREMIER VIP LARGE CAP o Alliance Capital Management L.P., through its
CORE EQUITY Bernstein Investment Research and Manage-
ment Unit
o Janus Capital Management LLC
o Thornburg Investment Management, Inc.
- -----------------------------------------------------------------------------------------------
Contract features and benefits 25
Portfolios of the Trusts (continued)
- -----------------------------------------------------------------------------------------------------------------------------------
AXA Premier VIP Trust
Portfolio Name Objective Adviser(s)
- -----------------------------------------------------------------------------------------------------------------------------------
AXA PREMIER VIP LARGE CAP Seeks long-term growth of capital. o Alliance Capital Management L.P.
GROWTH o RCM Capital Management LLC
o TCW Investment Management Company
- -----------------------------------------------------------------------------------------------------------------------------------
AXA PREMIER VIP LARGE CAP Seeks long-term growth of capital. o Alliance Capital Management L.P.
VALUE o Institutional Capital Corporation
o MFS Investment Management
- -----------------------------------------------------------------------------------------------------------------------------------
AXA PREMIER VIP SMALL/MID Seeks long-term growth of capital. o Alliance Capital Management L.P.
CAP GROWTH o Franklin Advisers, Inc.
o Provident Investment Counsel, Inc.
- -----------------------------------------------------------------------------------------------------------------------------------
AXA PREMIER VIP SMALL/MID Seeks long-term growth of capital. o AXA Rosenberg Investment Management LLC
CAP VALUE o TCW Investment Management Company
o Wellington Management Company, LLP
- -----------------------------------------------------------------------------------------------------------------------------------
AXA PREMIER VIP TECHNOLOGY Seeks long-term growth of capital. o Firsthand Capital Management, Inc.
o RCM Capital Management LLC
o Wellington Management Company, LLP
- -----------------------------------------------------------------------------------------------------------------------------------
EQ Advisors Trust
Portfolio Name Objective Adviser(s)
- -----------------------------------------------------------------------------------------------------------------------------------
EQ/ALLIANCE COMMON STOCK Seeks to achieve long-term growth of capital. o Alliance Capital Management L.P.
- -----------------------------------------------------------------------------------------------------------------------------------
EQ/ALLIANCE GROWTH AND Seeks to provide a high total return. o Alliance Capital Management L.P.
INCOME
- -----------------------------------------------------------------------------------------------------------------------------------
EQ/ALLIANCE INTERMEDIATE Seeks to achieve high current income consistent with o Alliance Capital Management L.P.
GOVERNMENT SECURITIES relative stability of principal.
- -----------------------------------------------------------------------------------------------------------------------------------
EQ/ALLIANCE INTERNATIONAL Seeks to achieve long-term growth of capital. o Alliance Capital Management L.P.
- -----------------------------------------------------------------------------------------------------------------------------------
EQ/ALLIANCE PREMIER GROWTH Seeks to achieve long-term growth of capital. o Alliance Capital Management L.P.
- -----------------------------------------------------------------------------------------------------------------------------------
EQ/ALLIANCE QUALITY BOND Seeks to achieve high current income consistent with o Alliance Capital Management L.P.
moderate risk to capital.
- -----------------------------------------------------------------------------------------------------------------------------------
EQ/ALLIANCE SMALL CAP Seeks to achieve long-term growth of capital. o Alliance Capital Management L.P.
GROWTH
- -----------------------------------------------------------------------------------------------------------------------------------
EQ/BERNSTEIN DIVERSIFIED VALUE Seeks capital appreciation. o Alliance Capital Management L.P.,
through its Bernstein Investment Research
and Management Unit
- -----------------------------------------------------------------------------------------------------------------------------------
EQ/CALVERT SOCIALLY Seeks long-term capital appreciation. o Calvert Asset Management Company, Inc.
RESPONSIBLE and Brown Capital Management, Inc.
- -----------------------------------------------------------------------------------------------------------------------------------
EQ/CAPITAL GUARDIAN To achieve long-term growth of capital. o Capital Guardian Trust Company
INTERNATIONAL
- -----------------------------------------------------------------------------------------------------------------------------------
EQ/CAPITAL GUARDIAN Seeks to achieve long-term growth of capital. o Capital Guardian Trust Company
RESEARCH
- -----------------------------------------------------------------------------------------------------------------------------------
EQ/CAPITAL GUARDIAN U.S. Seeks to achieve long-term growth of capital. o Capital Guardian Trust Company
EQUITY
- -----------------------------------------------------------------------------------------------------------------------------------
26 Contract features and benefits
Portfolios of the Trusts (continued)
- -----------------------------------------------------------------------------------------------------------------------------------
EQ Advisors Trust
Portfolio Name Objective
- -----------------------------------------------------------------------------------------------------------------------------------
EQ/EMERGING MARKETS EQUITY Seeks long-term capital appreciation.
- -----------------------------------------------------------------------------------------------------------------------------------
EQ/EQUITY 500 INDEX Seeks a total return before expenses that approximates
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.
- -----------------------------------------------------------------------------------------------------------------------------------
EQ/FI MID CAP Seeks long-term growth of capital.
- -----------------------------------------------------------------------------------------------------------------------------------
EQ/FI SMALL/MID CAP VALUE Seeks long-term capital appreciation.
- -----------------------------------------------------------------------------------------------------------------------------------
EQ/J.P. MORGAN CORE BOND Seeks to provide a high total return consistent with mod-
erate risk to capital and maintenance of liquidity.
- -----------------------------------------------------------------------------------------------------------------------------------
EQ/JANUS LARGE CAP GROWTH Seeks long-term growth of capital.
- -----------------------------------------------------------------------------------------------------------------------------------
EQ/LAZARD SMALL CAP VALUE Seeks capital appreciation.
- -----------------------------------------------------------------------------------------------------------------------------------
EQ/MARSICO FOCUS Seeks long-term growth of capital.
- -----------------------------------------------------------------------------------------------------------------------------------
EQ/MERCURY BASIC VALUE Seeks capital appreciation and secondarily, income.
EQUITY
- -----------------------------------------------------------------------------------------------------------------------------------
EQ/MERCURY INTERNATIONAL Seeks capital appreciation.
VALUE
- -----------------------------------------------------------------------------------------------------------------------------------
EQ/MFS EMERGING GROWTH Seeks to provide long-term capital growth.
COMPANIES
- -----------------------------------------------------------------------------------------------------------------------------------
EQ/MFS INVESTORS TRUST Seeks long-term growth of capital with secondary objec-
tive to seek reasonable current income.
- -----------------------------------------------------------------------------------------------------------------------------------
EQ/MONEY MARKET Seeks to obtain a high level of current income, preserve
its assets and maintain liquidity.
- -----------------------------------------------------------------------------------------------------------------------------------
EQ/PUTNAM GROWTH & INCOME Seeks capital growth. Current income is a secondary
VALUE objective.
- -----------------------------------------------------------------------------------------------------------------------------------
EQ/PUTNAM VOYAGER Seeks long-term growth of capital and any increased
income that results from this growth.
- -----------------------------------------------------------------------------------------------------------------------------------
EQ/SMALL COMPANY INDEX Seeks to replicate as closely as possible (before the
deduction of portfolio expenses) the total return of the
Russell 2000 Index.
- -----------------------------------------------------------------------------------------------------------------------------------
EQ/TECHNOLOGY Seeks to achieve long-term growth of capital.
- -----------------------------------------------------------------------------------------------------------------------------------
Barr Rosenberg Variable
Insurance Trust
Portfolio Name Objective
- -----------------------------------------------------------------------------------------------------------------------------------
LAUDUS ROSENBERG VIT VALUE Seeks to increase the value of your investment in bull
LONG/SHORT EQUITY markets and bear markets through strategies that are
designed to have limited exposure to general equity
market risk.
- -----------------------------------------------------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------------------------------------------
EQ Advisors Trust
Portfolio Name Adviser(s)
- -----------------------------------------------------------------------------------------------------------------------------------
EQ/EMERGING MARKETS EQUITY o Morgan Stanley Investment Management,
Inc.
- -----------------------------------------------------------------------------------------------------------------------------------
EQ/EQUITY 500 INDEX o Alliance Capital Management L.P.
- -----------------------------------------------------------------------------------------------------------------------------------
EQ/EVERGREEN OMEGA o Evergreen Investment Management
Company, LLC
- -----------------------------------------------------------------------------------------------------------------------------------
EQ/FI MID CAP o Fidelity Management & Research Company
- -----------------------------------------------------------------------------------------------------------------------------------
EQ/FI SMALL/MID CAP VALUE o Fidelity Management & Research Company
- -----------------------------------------------------------------------------------------------------------------------------------
EQ/J.P. MORGAN CORE BOND o J.P. Morgan Investment Management Inc.
- -----------------------------------------------------------------------------------------------------------------------------------
EQ/JANUS LARGE CAP GROWTH o Janus Capital Management LLC
- -----------------------------------------------------------------------------------------------------------------------------------
EQ/LAZARD SMALL CAP VALUE o Lazard Asset Management, LLC
- -----------------------------------------------------------------------------------------------------------------------------------
EQ/MARSICO FOCUS o Marsico Capital Management, LLC
- -----------------------------------------------------------------------------------------------------------------------------------
EQ/MERCURY BASIC VALUE o Mercury Advisors
EQUITY
- -----------------------------------------------------------------------------------------------------------------------------------
EQ/MERCURY INTERNATIONAL o Merrill Lynch Investment Managers Interna-
VALUE tional Limited
- -----------------------------------------------------------------------------------------------------------------------------------
EQ/MFS EMERGING GROWTH o MFS Investment Management
COMPANIES
- -----------------------------------------------------------------------------------------------------------------------------------
EQ/MFS INVESTORS TRUST o MFS Investment Management
- -----------------------------------------------------------------------------------------------------------------------------------
EQ/MONEY MARKET o Alliance Capital Management L.P.
- -----------------------------------------------------------------------------------------------------------------------------------
EQ/PUTNAM GROWTH & INCOME o Putnam Investment Management, LLC
VALUE
- -----------------------------------------------------------------------------------------------------------------------------------
EQ/PUTNAM VOYAGER o Putnam Investment Management, LLC
- -----------------------------------------------------------------------------------------------------------------------------------
EQ/SMALL COMPANY INDEX o Alliance Capital Management L.P.
- -----------------------------------------------------------------------------------------------------------------------------------
EQ/TECHNOLOGY o Firsthand Capital Management, Inc.
o RCM Capital Management LLC
o Wellington Management Company, LLP
- -----------------------------------------------------------------------------------------------------------------------------------
Barr Rosenberg Variable
Insurance Trust
Portfolio Name Investment Manager/Adviser
- -----------------------------------------------------------------------------------------------------------------------------------
LAUDUS ROSENBERG VIT VALUE o Charles Schwab Investment Management,
LONG/SHORT EQUITY Inc.
o AXA Rosenberg Investment Management LLC
- -----------------------------------------------------------------------------------------------------------------------------------
Contract features and benefits 27
Portfolios of the Trusts (continued)
- -----------------------------------------------------------------------------------------------------------------------------------
The Universal Institutional
Funds, Inc.
Portfolio Name Objective Investment Manager
- -----------------------------------------------------------------------------------------------------------------------------------
U.S. REAL ESTATE -- Class II(1) Seeks to provide above average current income and long- o Van Kampen(2)
term capital appreciation by investing primarily in equity
securities of companies in the U.S. real estate industry,
including real estate investment trusts.
- -----------------------------------------------------------------------------------------------------------------------------------
(1) "Class II" shares are defined in the current underlying Trust prospectus.
(2) Van Kampen is the name under which Morgan Stanley Investment Management
Inc. does business in certain situations.
You should consider the investment objectives, risks and charges and expenses
of the Portfolios carefully before investing. The prospectuses for the Trusts
contain this and other important information about the Portfolios. The
prospectuses should be read carefully before investing. In order to obtain
copies of Trust prospectuses that do not accompany this Prospectus, you may
call one of our customer service representatives at 1-800-789-7771.
28 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. We reserve the right to change these procedures.
All interest rates are effective annual rates, but before deduction of annual
administrative charges (if permitted in your state) or any withdrawal charges.
The minimum yearly guaranteed interest rate is 3% for 2004. 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.
See "Transferring your money among the investment options" later in this
Prospectus for restrictions on transfers from the Guaranteed Interest Option.
FIXED MATURITY OPTIONS
We offer fixed maturity options with maturity dates ranging from one to ten
years. We will not accept allocations to a fixed maturity option if on the date
the contribution or transfer is to be applied the rate to maturity is 3%. This
means that at points in time, there may be no fixed maturity options available.
You can allocate your contributions to one or more of these fixed maturity
options, however, you may not have more than 12 different maturities running
during any contract year. These amounts become part of a non-unitized separate
account. 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 all states. Check with your financial professional
to see if fixed maturity options are available in your state.
- --------------------------------------------------------------------------------
Fixed maturity options generally 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.
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 amounts 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 offer fixed maturity options with
maturity dates ranging from one to ten years. Not all of these fixed maturity
options will be available for annuitant ages 76 and older. See "Allocating your
contributions" below.
Each new contribution is applied to a new fixed maturity option. When you apply
for an Accumulator(R) contract, a 60-day rate lock-in will apply from the date
the application is signed. Any contributions received and designated for a
fixed maturity option during this period will receive the then current fixed
maturity option rate or the rate that was in effect on the date that the
application was signed, whichever is greater. There is no rate lock available
for subsequent contributions to the contract after 60 days, transfers from the
variable investment options or the guaranteed interest option into a fixed
maturity option or transfers, from one fixed maturity option to another.
YOUR CHOICES AT THE MATURITY DATE. We will notify you between 15 and 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 in "Allocating your
contributions," below would apply:
(a) transfer the maturity value into another available fixed maturity option,
any of the variable investment options or the guaranteed interest option;
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
shortest available maturity option beginning on that date. As of February 13,
2004, the next available maturity date was February 13, 2012. If no fixed
maturity options are available, we will transfer your maturity value to the
EQ/Money Market option.
MARKET VALUE ADJUSTMENT. If you make any withdrawals (including transfers,
surrender 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 in effect at that time for new fixed maturity
options (adjusted to reflect a similar maturity date), 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
Contract features and benefits 29
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.
ACCOUNT FOR SPECIAL DOLLAR COST AVERAGING
The account for special dollar cost averaging is part of our general account.
We pay interest at guaranteed rates in this account. We will credit interest to
the amounts that you have in the account for special dollar cost averaging
every day. We set the interest rates periodically, according to procedures that
we have. We reserve the right to change these procedures.
We guarantee to pay our current interest rate that is in effect on the date
that your contribution is allocated to this account. Your guaranteed interest
rate for the time period you select will be shown in your contract for an
initial contribution. The rate will never be less than 3%. See "Allocating your
contributions" below for rules and restrictions that apply to the special
dollar cost averaging program.
ALLOCATING YOUR CONTRIBUTIONS
You may choose from among three ways to allocate your contributions under your
contract: self-directed, principal assurance, or dollar cost averaging.
SELF-DIRECTED ALLOCATION
You may allocate your contributions to one or more, or all, of the variable
investment options, the guaranteed interest option and fixed maturity options.
Allocations must be in whole percentages and you may change your allocations at
any time. The total of your allocations must equal 100%. If the annuitant is
age 76-80, you may allocate contributions to fixed maturity options with
maturities of seven years or less. If the annuitant is age 81 or older, you may
allocate contributions to fixed maturity options with maturities of five years
or less. Also, you may not allocate amounts to fixed maturity options with
maturity dates that are later than the date annuity payments are to begin.
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 7 years from your contract date. If you make any withdrawals or
transfers from the fixed maturity option before the option's maturity date, the
amount in the fixed maturity option will be adjusted and may no longer grow to
equal your initial contribution under the principal assurance allocation.
Principal assurance will not be available if none of those maturity dates is
currently available. You allocate the rest of your contribution to the variable
investment options and the guaranteed interest option however you choose.
For example, if your initial contribution is $10,000, and on February 13, 2004
you chose the fixed maturity option with a maturity date of February 13, 2014,
since the rate to maturity was 3.73% on February 13, 2004, we would have
allocated $6,931 to that fixed maturity option and the balance to your choice
of variable investment options and the guaranteed interest option. On the
maturity date your value in the fixed maturity option would be $10,000.
The principal assurance allocation is only available for annuitants ages 80 or
younger when the contract is issued. If the annuitant is age 76-80, your
principal assurance allocation is limited to the seven year fixed maturity
option only. If you anticipate taking required minimum distributions, you
should consider whether your values in the variable investment options and
guaranteed interest option are sufficient to meet your required minimum
distributions. See "Tax information" later in this Prospectus and in the SAI.
Please check with your financial professional to see if the principal assurance
allocation feature is available in your state. Also, you may not elect
principal assurance if the special dollar cost averaging program is in effect.
DOLLAR COST AVERAGING
We offer a variety of dollar cost averaging programs. You may only participate
in one program at a time. Each program 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 value is low and fewer units if
the unit value is high. Therefore, you may get a lower average cost per unit
over the long term. These plans of investing, however, do not guarantee that
you will earn a profit or be protected against losses. You may not make
transfers to the fixed maturity options.
- --------------------------------------------------------------------------------
Units measure your value in each variable investment option.
- --------------------------------------------------------------------------------
SPECIAL DOLLAR COST AVERAGING PROGRAM. Subject to state availability, under the
special dollar cost averaging program, you may choose to allocate all or a
portion of any eligible contribution to the account for special dollar cost
averaging. Contributions into the account for special dollar cost averaging may
not be transfers from other investment options. Your initial allocation to any
special dollar cost averaging program time period must be at least $2,000 and
any subsequent contribution to that same time period must be at least $250. You
may only have one time period in effect at any time and once you select a time
period, you may not change it. In Pennsylvania, we refer to this program as
"enhanced rate dollar cost averaging."
You may have your account value transferred to any of the variable investment
options. We will transfer amounts from the account for special dollar cost
averaging into the variable investment options over
30 Contract features and benefits
an available time period that you select. We offer time periods of 3, 6 or 12
months, during which you will receive an enhanced interest rate. We may also
offer other time periods. Your financial professional can provide information
on the time periods and interest rates currently available in your state, or
you may contact our processing office. If the special dollar cost averaging
program is selected at the time of application to purchase the Accumulator(R)
contract, a 60 day rate lock will apply from the date of application. Any
contribution(s) received during this 60 day period will be credited with the
interest rate offered on the date of application for the remainder of the time
period selected at application. Any contribution(s) received after the 60 day
rate lock period has ended will be credited with the then current interest rate
for the remainder of the time period selected at application. Contribution(s)
made to a special dollar cost averaging program selected after the
Accumulator(R) contract has been issued will be credited with the then current
interest rate on the date the contribution is received by Equitable for the
time period initially selected by you. Once the time period you selected has
run, you may then select another time period for future contributions. At that
time, you may also select a different allocation for transfers to the variable
investment options, or, if you wish, we will continue to use the selection that
you have previously made. Currently, your account value will be transferred
from the account for special dollar cost averaging into the variable investment
options on a monthly basis. We may offer this program in the future with
transfers on a different basis.
We will transfer all amounts out of the account for special dollar cost
averaging by the end of the chosen time period. The transfer date will be the
same day of the month as the contract date, but not later than the 28th day of
the month. For a special dollar cost averaging program selected after
application, the first transfer date and each subsequent transfer date for the
time period selected will be one month from the date the first contribution is
made into the special dollar cost averaging program, but not later than the
28th of the month.
If you choose to allocate only a portion of an eligible contribution to the
account for special dollar cost averaging, the remaining balance of that
contribution will be allocated to the variable investment options, guaranteed
interest option or fixed maturity options according to your instructions.
The only amounts that should be transferred from the account for special dollar
cost averaging are your regularly scheduled transfers to the variable
investment options. No amounts may be transferred from the account for special
dollar cost averaging to the guaranteed interest option or the fixed maturity
options. If you request to transfer or withdraw any other amounts from the
account for special dollar averaging, we will transfer all of the value that
you have remaining in the account for special dollar cost averaging to the
investment options according to the allocation percentages for special dollar
cost averaging we have on file for you. You may ask us to cancel your
participation at any time.
GENERAL DOLLAR COST AVERAGING PROGRAM. If your value in the EQ/Money Market
option is at least $5,000, you may choose, at any time, to have a specified
dollar amount or percentage of your value transferred from that option to the
other variable investment options and the guaranteed interest option. You can
select to have transfers made on a monthly, quarterly or annual basis. The
transfer date will be the same calendar day of the month as the contract date,
but not later than the 28th day of the month. You can also specify the number
of transfers or instruct us to continue making the transfers until all amounts
in the EQ/Money Market option have been transferred out.
The minimum amount that we will transfer each time is $250. The maximum amount
we will transfer is equal to your value in the EQ/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/Money Market option is equal to
or less than the amount you have elected to have transferred, the entire amount
will be transferred. The general dollar cost averaging program will then end.
You may change the transfer amount once each contract year or cancel this
program at any time.
INVESTMENT SIMPLIFIER
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. Transfers may be made on a monthly,
quarterly or annual basis. You can specify the number of transfers or instruct
us to continue to make 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. The transfer date will be the same calendar day of the month
as the contract date but not later than the 28th day of the month. The minimum
transfer amount is $50. Unlike the account for special dollar cost averaging,
this option does not offer enhanced rates. Also, the option is subject to the
guaranteed interest option transfer limitations described under "Transferring
your account value" in "Transferring your money among investment options" later
in this Prospectus. While the program is running, any transfer that exceeds
those limitations will cause the program to end for that contract year. You
will be notified. You must send in a request form to resume the program in the
next or subsequent contract years.
If, on any transfer date, your value in the guaranteed interest option is equal
to or less than the amount you have elected to have transferred, the entire
amount will be transferred, and the program will end. You may change the
transfer amount once each contract year or cancel this program at any time.
Interest sweep option. Under this option, you may elect to have monthly
transfers from amounts in the guaranteed interest option into the variable
investment options of your choice. The transfer date will be the last business
day of the month. 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. We will automatically cancel the interest sweep
program if the amount in the guaranteed interest option is less than $7,500 on
the last day of the month for two months in a row. For the interest sweep
option, the first monthly transfer will occur on the
Contract features and benefits 31
last business day of the month following the month that we receive your
election form at our processing office.
----------------------------------
You may not participate in any dollar cost averaging program if you are
participating in the rebalancing program. See "Transferring your money among
investment options" later in this Prospectus. You may not elect the special
dollar cost averaging program if the principal assurance program is in effect.
YOUR BENEFIT BASE
A benefit base is used to calculate the guaranteed minimum income benefit and
any death benefit, as described in this section. Your benefit base is not an
account value or a cash value. See also "Our Living Benefit option" and
"Guaranteed minimum death benefit" below.
STANDARD DEATH BENEFIT. Your benefit base is equal to:
o your initial contribution and any additional contributions to the contract;
less
o a deduction that reflects any withdrawals you make (the amount of the
deduction is described under "How withdrawals affect your guaranteed
minimum income benefit and guaranteed minimum death benefit" in "Accessing
your money" later in this Prospectus).
6% ROLL UP TO AGE 85 ENHANCED DEATH BENEFIT. Your benefit base is equal to:
o your initial contribution and any additional contributions to the contract;
plus
o daily interest; less
o a deduction that reflects any withdrawals you make (the amount of the
deduction is described under "How withdrawals affect your guaranteed
minimum income benefit and guaranteed minimum death benefit" in "Accessing
your money" later in this Prospectus).
The effective annual interest rate credited to this benefit base is:
o 6% (4% in Washington for the enhanced death benefit only) with respect to the
variable investment options (other than EQ/Alliance Intermediate
Government Securities and EQ/Money Market) and the account for special
dollar cost averaging; and
o 3% with respect to the EQ/Alliance Intermediate Government Securities and
EQ/Money Market, the fixed maturity options, the guaranteed interest
option and the loan reserve account under Rollover TSA (if applicable).
No interest is credited to the benefit base after the contract anniversary
following the annuitant's 85th birthday.
ANNUAL RATCHET TO AGE 85 ENHANCED DEATH BENEFIT. Your benefit base is equal to
the greater of:
o your initial contribution to the contract (plus any additional
contributions),
or
o your highest account value on any contract anniversary up to the contract
anniversary following the annuitant's 85th birthday plus any contribution
made since the most recent contract anniversary,
each less
o a deduction that reflects any withdrawals you make (the amount of the
deduction is described under "How withdrawals affect your guaranteed
minimum income benefit and guaranteed minimum death benefit" in "Accessing
your money" later in this Prospectus).
GREATER OF 6% ROLL UP TO AGE 85 OR THE ANNUAL RATCHET TO AGE 85 ENHANCED DEATH
BENEFIT AND THE GUARANTEED MINIMUM INCOME BENEFIT. Your benefit base is equal
to the greater of the benefit base computed for the 6% Roll up to age 85 or the
benefit base computed for Annual ratchet to age 85, as described immediately
above, on each contract anniversary. For the guaranteed minimum income benefit,
the benefit base is reduced by any applicable withdrawal charge remaining when
the option is exercised.
ANNUITY PURCHASE FACTORS
Annuity purchase factors are the factors applied to determine your periodic
payments under the guaranteed minimum income benefit and annuity payout
options. The guaranteed minimum income benefit is discussed under "Our Living
Benefit option" below and annuity payout options are discussed under "Your
annuity payout options" in "Accessing your money" later in this Prospectus. The
guaranteed annuity purchase factors are those factors specified in your
contract. The current annuity purchase factors are those factors that are in
effect at any given time. Annuity purchase factors are based on interest rates,
mortality tables, frequency of payments, the form of annuity benefit, and the
annuitant's (and any joint annuitant's) age and sex in certain instances.
OUR LIVING BENEFIT OPTION
The Living Benefit option offers you a guaranteed minimum income benefit. The
Living Benefit is available if the annuitant is age 20 through 75 at the time
the contract is issued. There is an additional charge for the Living Benefit
which is described under "Living Benefit charge" in "Charges and expenses"
later in this Prospectus. Please ask your financial professional if the Living
Benefit is available in your state. If you are purchasing this contract as an
Inherited IRA, the guaranteed minimum income benefit is not available. If you
are purchasing this contract to fund a Charitable Remainder Trust, the
guaranteed minimum income benefit is generally not available. Subject to our
rules, the Living Benefit may be available for certain split-funded Charitable
Remainder Trusts.
The guaranteed minimum income benefit guarantees you a minimum amount of fixed
income under your choice of a life annuity fixed payout option or an Income
Manager level payment life with a period certain payout option subject to state
availability. You choose which of these payout options you want and whether you
want the option to be paid on a single or joint life basis at the time you
exercise your guaranteed minimum income benefit. The maximum period certain
available under the Income Manager payout option is 10 years. This period may
be shorter, depending on the annuitant's age, as follows:
32 Contract features and benefits
- ----------------------------------------------
Level payments
- ----------------------------------------------
Period certain years
Annuitant's -------------------------
age at excise IRAs NQ
- ----------------------------------------------
60-75 10 10
76 9 10
77 8 10
78 7 10
79 7 10
80 7 10
81 7 9
82 7 8
83 7 7
84 6 6
85 5 5
- ----------------------------------------------
We may also make other forms of payout options available. For a description of
payout options, see "Your annuity payout options" in "Accessing your money"
later in this Prospectus.
- --------------------------------------------------------------------------------
The guaranteed minimum income benefit, which is also known as a living benefit,
should be regarded as a safety net only. It provides income protection if you
elect an income payout while the annuitant is alive.
- --------------------------------------------------------------------------------
When you exercise the guaranteed minimum income benefit, the annual lifetime
income that you will receive will be the greater of (i) your guaranteed minimum
income benefit which is calculated by applying your guaranteed minimum income
benefit base less any outstanding loan plus accrued interest (applies to
Rollover TSA only), at guaranteed annuity purchase factors, or (ii) the income
provided by applying your actual account value at our then current annuity
purchase factors. The benefit base is applied only to the Living Benefit
guaranteed annuity purchase factors in your contract and not to any other
guaranteed or current annuity purchase rates. The amount of income you actually
receive will be determined when we receive your request to exercise the
benefit.
When you elect to receive annual lifetime income, your contract will terminate
and you will receive a new contract for the annuity payout option. For a
discussion of when your payments will begin and end, see "Exercise of
guaranteed minimum income benefit" below.
Before you elect the Living Benefit, you should consider the fact that the
guaranteed minimum income benefit provides a form of insurance and is based on
conservative actuarial factors. The guaranteed annuity purchase factors we use
to determine your Income Manager benefit under the Living Benefit are more
conservative than the guaranteed annuity purchase factors we use for the Income
Manager payout annuity option. This means that, assuming the same amount is
applied to purchase the benefit and that we use guaranteed annuity purchase
factors to compute the benefit, each periodic payment under the Living Benefit
Income Manager will be smaller than each periodic payment under the Income
Manager payout annuity option. Therefore, even if your account value is less
than your benefit base, you may generate more income by applying your account
value to current annuity purchase factors. We will make this comparison for you
when the need arises.
ILLUSTRATIONS OF GUARANTEED MINIMUM INCOME BENEFIT. Assuming the 6% Roll up to
age 85 benefit base, the table below illustrates the guaranteed minimum income
benefit amounts per $100,000 of initial contribution, for a male annuitant age
60 (at issue) on the contract date anniversaries indicated, who has elected the
life annuity fixed payout option, using the guaranteed annuity purchase factors
as of the date of this Prospectus, assuming no additional contributions,
withdrawals, or loans under Rollover TSA contracts, and assuming there were no
allocations to the EQ/Alliance Intermediate Government Securities, EQ/Money
Market, the guaranteed interest option, the fixed maturity options or the loan
reserve account under Rollover TSA contracts.
- ------------------------------------------------------
guaranteed minimum
Contract date income benefit -- annual
anniversary at exercise income payable for life
- ------------------------------------------------------
10 $11,891
15 $18,597
- ------------------------------------------------------
EXERCISE OF GUARANTEED MINIMUM INCOME BENEFIT. On each contract date
anniversary that you are eligible to exercise the guaranteed minimum income
benefit, we will send you an eligibility notice illustrating how much income
could be provided as of the contract date anniversary. You must notify us
within 30 days following the contract date anniversary if you want to exercise
the guaranteed minimum income benefit. You must return your contract to us
along with any required information in order to exercise this benefit. You will
begin receiving annual payments one year after the annuity payout contract is
issued. You may choose to take a withdrawal prior to exercising the guaranteed
minimum income benefit, which will reduce your payments. You may not partially
exercise this benefit. See "Accessing your money" under "Withdrawing your
account value" later in this Prospectus. Payments end with the last payment
before the annuitant's (or joint annuitant's, if applicable) death or, if
later, the end of the period certain (where the payout option chosen includes a
period certain).
You will be eligible to exercise the guaranteed minimum income benefit as
follows:
o If the annuitant was at least age 20 and no older than age 44 when the
contract was issued, you are eligible to exercise the guaranteed minimum
income benefit within 30 days following each contract date anniversary
beginning with the 15th contract date anniversary.
o If the annuitant was at least age 45 and no older than age 49 when the
contract was issued, you are eligible to exercise the guaranteed minimum
income benefit within 30 days following each contract date anniversary
after the annuitant is age 60.
o If the annuitant was at least age 50 and no older than age 75 when the
contract was issued, you are eligible to exercise the guaranteed minimum
income benefit within 30 days following each contract date anniversary
beginning with the 10th contract date anniversary.
Please note:
(i) the latest date you may exercise the guaranteed minimum income benefit
is the contract date anniversary following the annuitant's 85th birthday;
Contract features and benefits 33
(ii) if the annuitant was age 75 when the contract was issued, the only time
you may exercise the guaranteed minimum income benefit is within 30 days
following the first contract date anniversary that it becomes available;
(iii) if the annuitant was older than age 60 at the time an IRA, QP or
Rollover TSA contract was issued, the Living Benefit may not be an
appropriate feature because the minimum distributions required by tax law
generally must begin before the guaranteed minimum income benefit can be
exercised;
(iv) For QP and Rollover TSA contracts, if you are eligible to exercise your
guaranteed minimum income benefit, we will first roll over amounts in such
contract to a Rollover IRA contract. You will be the owner of the Rollover
IRA contract; and
(v) For a successor owner/annuitant, the earliest exercise date will be
based on the original contract issue date and the age of successor
owner/annuitant as of the Processing Date successor owner/
annuitant takes effect.
Please see both "Termination of your contract" in "Determining your contract
value" and "How withdrawals affect your guaranteed minimum income benefit and
guaranteed minimum death benefit" in "Accessing your money" later in this
Prospectus for more information on these guaranteed benefits.
GUARANTEED MINIMUM DEATH BENEFIT
Your contract provides a death benefit. If you do not elect one of the enhanced
death benefits 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 standard death benefit, whichever provides the highest
amount. The standard death benefit is equal to your total contributions,
adjusted for withdrawals (and any associated withdrawal charges), and any taxes
that apply.
If you elect one of the enhanced death benefits, the death benefit is equal to
your account value 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 your elected enhanced
death benefit on the date of the annuitant's death, adjusted for withdrawals
(and associated withdrawal charges) and taxes that apply, whichever provides
the highest amount.
OPTIONAL ENHANCED DEATH BENEFIT APPLICABLE FOR ANNUITANT AGES 0 THROUGH 84 AT
ISSUE OF NQ CONTRACTS; 20 THROUGH 84 AT ISSUE OF ROLLOVER IRA, ROTH CONVERSION
IRA, FLEXIBLE PREMIUM ROTH IRA, AND ROLLOVER TSA CONTRACTS; 20 THROUGH 70 AT
ISSUE OF FLEXIBLE PREMIUM IRA CONTRACTS; 0-70 AT ISSUE FOR INHERITED IRA
CONTRACTS; AND 20 THROUGH 75 AT ISSUE OF QP CONTRACTS.
Subject to state availability, you may elect one of the following enhanced
death benefits:
6% ROLL UP TO AGE 85.
ANNUAL RATCHET TO AGE 85.
THE GREATER OF THE 6% ROLL UP TO AGE 85 OR THE ANNUAL RATCHET TO AGE 85.
Each enhanced death benefit is equal to its corresponding benefit base
described earlier in "Your benefit base." Once you have made your enhanced
death benefit election, you may not change it. In New York, only the standard
death benefit and the Annual ratchet to age 85 enhanced death benefit are
available.
The standard death benefit is the only death benefit available for annuitants
who are age 85 at issue of NQ, Rollover IRA, Roth Conversion IRA, Flexible
Premium Roth IRA and Rollover TSA contracts.
----------------------------------
Please see both "Termination of your contract" in "Determining your contract
value" and "How withdrawals affect your guaranteed minimum income benefit and
guaranteed minimum death benefit" in "Accessing your money" later in this
Prospectus for more information on these guaranteed benefits.
See Appendix IV at the end of this Prospectus for an example of how we
calculate an enhanced death benefit.
PROTECTION PLUS
Subject to state and contract availability, if you are purchasing a contract
under which the Protection Plus feature is available, you may elect the
Protection Plus death benefit at the time you purchase your contract.
Protection Plus provides an additional death benefit as described below. See
the appropriate part of "Tax information" later in this Prospectus for the
potential tax consequences of electing to purchase the Protection Plus feature
in an NQ, IRA or Rollover TSA contract.
If the annuitant is 70 or younger when we issue your contract (or if the
successor owner/annuitant is 70 or younger when he or she becomes the successor
owner/annuitant), the death benefit will be:
the greater of:
o the account value or
o any applicable death benefit
Increased by:
o such death benefit less total net contributions, multiplied by 40%
For purposes of calculating your Protection Plus benefit, the following
applies: (i) "Net contributions" are the total contributions made (or, if
applicable, the total amount that would otherwise have been paid as a death
benefit had the successor owner/annuitant election not been made plus any
subsequent contributions) reduced on a pro rata basis to reflect withdrawals
(including surrender charges and loans). Reduction on a pro rata basis means
that we calculate the percentage of the current account value that is being
withdrawn and we reduce net contributions by that percentage. For example, if
the account value is $30,000 and you withdraw $12,000, you have withdrawn 40%
of your account value. If the contributions aggregated $40,000 before the
withdrawal, it would be reduced by $16,000 ($40,000 x .40) and net
contributions after the withdrawal would be $24,000 ($40,000-$16,000); (ii)
"Death benefit" is equal to the greater of the
34 Contract features and benefits
account value as of the date we receive satisfactory proof of death or any
applicable guaranteed minimum death benefit as of the date of death.
If the annuitant is age 71 through 79 when we issue your contract (or if the
successor owner/annuitant is between the ages of 71 and 79 when he or she
becomes the successor owner/annuitant and Protection Plus had been elected at
issue), the death benefit will be:
the greater of:
o the account value or
o any applicable death benefit
Increased by:
o such death benefit (as described above) less total net contributions,
multiplied by 25%
The value of the Protection Plus death benefit is frozen on the first contract
date anniversary after the annuitant turns age 80, except that the benefit will
be reduced for withdrawals on a pro rata basis. Protection Plus must be elected
when the contract is first issued: neither the owner nor the successor
owner/annuitant can add it subsequently. Ask your financial professional if
this feature is available in your state.
INHERITED IRA BENEFICIARY CONTINUATION CONTRACT
This contract is available to an individual beneficiary of a traditional IRA or
a Roth IRA where the deceased owner held the individual retirement account or
annuity (or Roth individual retirement account or annuity) with an insurance
company or financial institution other than Equitable. The purpose of the
inherited IRA beneficiary continuation contract is to permit the beneficiary to
change the funding vehicle that the deceased owner selected ("original IRA")
while taking the required minimum distribution payments that must be made to
the beneficiary after the deceased owner's death. This contract is intended
only for beneficiaries who want to take payments at least annually over their
life expectancy. These payments generally must begin (or must have begun) no
later than December 31 of the calendar year following the year the deceased
owner died. This contract is not suitable for beneficiaries electing the
"5-year rule." See "Beneficiary continuation option for IRA and Roth IRA
contracts" under "Beneficiary continuation option" in "Payment of death
benefit" later in this Prospectus. You should discuss with your tax adviser
your own personal situation. This contract may not be available in all states.
Please speak with your financial professional for further information.
The inherited IRA beneficiary continuation contract can only be purchased by a
direct transfer of the beneficiary's interest under the deceased owner's
original IRA. The owner of the inherited IRA beneficiary continuation contract
is the individual who is the beneficiary of the original IRA. (Certain trusts
with only individual beneficiaries will be treated as individuals for this
purpose). The contract must also contain the name of the deceased owner. In
this discussion, "you" refers to the owner of the inherited IRA beneficiary
continuation contract.
The inherited IRA beneficiary continuation contract can be purchased whether or
not the deceased owner had begun taking required minimum distribution payments
during his or her life from the original IRA or whether you had already begun
taking required minimum distribution payments of your interest as a beneficiary
from the deceased owner's original IRA. You should discuss with your own tax
adviser when payments must begin or must be made.
Under the inherited IRA beneficiary continuation contract:
o You must receive payments at least annually (but can elect to receive
payments monthly or quarterly). Payments are generally made over your life
expectancy determined in the calendar year after the deceased owner's
death and determined on a term certain basis.
o The beneficiary of the original IRA will be the annuitant under the
inherited IRA beneficiary continuation contract. In the case where the
beneficiary is a "See Through Trust," the oldest beneficiary of the trust
will be the annuitant.
o An inherited IRA beneficiary continuation contract is not available for
annuitants over age 70.
o The initial contribution must be a direct transfer from the deceased
owner's original IRA and is subject to minimum contribution amounts. See
"How you can purchase and contribute to your contract" earlier in this
section.
o Subsequent contributions of at least $1,000 are permitted but must be
direct transfers of your interest as a beneficiary from another IRA with a
financial institution other than Equitable, where the deceased owner is
the same as under the original IRA contract.
o You may make transfers among the investment options.
o You may choose at any time to withdraw all or a portion of the account
value. Any partial withdrawal must be at least $300. Withdrawal charges,
will apply as described in "Charges and expenses" later in this
Prospectus.
o The Living benefit, successor owner/annuitant feature, special dollar cost
averaging program, automatic investment program and systematic withdrawals
are not available under the Inherited IRA beneficiary continuation
contract.
o If you die, we will pay to a beneficiary that you choose the greater of the
annuity account value or the applicable death benefit.
o Upon your death, your beneficiary has the option to continue taking
required minimum distributions based on your remaining life expectancy or
to receive any remaining interest in the contract in a single 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. If your
beneficiary elects to continue to take distributions, we will increase the
account value to equal the applicable death benefit if such death benefit
is greater than such account value as of the date we receive satisfactory
proof of death and any required instructions, information and forms.
Thereafter, withdrawal charges will no longer apply. If you had elected
any enhanced death benefits, they will no longer be in effect and charges
for such benefits will stop. The minimum guaranteed death benefit will
also no longer be in effect.
Contract features and benefits 35
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, with a signed letter of instruction electing this right, to our
processing office within 10 days after you receive it. If state law requires,
this "free look" period may be longer.
Generally, your refund will equal your account value under the contract on the
day we receive notification of your decision to cancel the contract and will
reflect (i) any investment gain or loss in the variable investment options
(less the daily charges we deduct), (ii) any guaranteed interest in the
guaranteed interest option, (iii) any positive or negative market value
adjustments in the fixed maturity options, and (iv) any interest in the account
for special dollar cost averaging, through the date we receive your contract.
Some states require that we refund the full amount of your contribution (not
reflecting (i), (ii), (iii) or (iv) above). For any IRA contract 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 may 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 and in the SAI for
possible consequences of cancelling your contract.
In addition to the cancellation right described above, if you fully convert an
existing traditional IRA contract to a Roth Conversion IRA or Flexible Premium
Roth IRA contract, you may cancel your Roth Conversion IRA or Flexible Premium
Roth IRA contract and return to a Rollover IRA or Flexible Premium IRA
contract, whichever applies. Our processing office, or your financial
professional, can provide you with the cancellation instructions.
36 Contract features and benefits
2. Determining your contract's value
- --------------------------------------------------------------------------------
YOUR ACCOUNT VALUE AND CASH VALUE
Your "account value" is the total of the values you have in: (i) the variable
investment options; (ii) the guaranteed interest option; (iii) market adjusted
amounts in the fixed maturity options; (iv) the account for special dollar cost
averaging; and (v) the loan reserve account (applies for Rollover TSA contracts
only).
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) the
total amount or a pro rata portion of the annual administrative charge, as well
as optional benefit charges; (ii) any applicable withdrawal charges; and (iii)
the amount of any outstanding loan plus accrued interest (applicable to
Rollover TSA contracts only). Please see "Surrendering 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.
The unit value for each variable investment option depends on the investment
performance of that option less daily charges for:
(i) mortality and expense risks;
(ii) administrative expenses; and
(iii) distribution charges.
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);
(iii) increased to reflect a transfer into, or decreased to reflect a
transfer out of, a variable investment option; or
(iv) increased or decreased to reflect a transfer of your loan amount from
or to the loan reserve account under a Rollover TSA contract.
In addition, when we deduct the enhanced death benefit, Living Benefit and/or
Protection Plus benefit charges, the number of units credited to your contract
will be reduced. Your units are also reduced when we deduct the annual
administrative charge. 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
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, provided
there have been no withdrawals or transfers.
YOUR CONTRACT'S VALUE IN THE ACCOUNT FOR SPECIAL DOLLAR COST AVERAGING
Your value in the account for special dollar cost averaging at any time will
equal your contribution allocated to that option, plus interest, less the sum
of all amounts that have been transferred to the variable investment options
you have selected.
TERMINATION OF YOUR CONTRACT
Your contract will terminate without value if your account value is
insufficient to pay any applicable charges when due. Your account value could
become insufficient due to withdrawals and/or poor market performance. Upon
such termination, you will lose any applicable guaranteed benefits.
Determining your contract's value 37
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 may not transfer any amount to the account for special dollar cost
averaging.
o You may not transfer to a fixed maturity option that has a rate to maturity
of 3% or less.
o If the annuitant is age 76-80, you must limit your transfers to fixed
maturity options with maturities of seven years or less. If the annuitant
is age 81 or older, you must limit your transfers to fixed maturity
options of five years or less. As of February 13, 2004, maturities of less
than eight years were not available. Also, the maturity dates may be no
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.
In addition, we reserve the right to restrict transfers among variable
investment options as described in your contract, including limitations on the
number, frequency, or dollar amount of transfers.
The maximum amount that may be transferred from the guaranteed interest option
to any investment option (including amounts transferred pursuant to the
fixed-dollar option and interest sweep option dollar cost averaging programs
described under "Allocating your contributions" in "Contract features and
benefits" earlier in this Prospectus) in any contract year is the greatest of:
(a) 25% of the amount you have in the guaranteed interest option on the last
day of the prior contract year; or,
(b) the total of all amounts transferred at your request from the guaranteed
interest option to any of the Investment options in the prior contract
year; or,
(c) 25% of amounts transferred or allocated to the guaranteed interest option
during the current contract year.
From time to time, we may remove the restrictions regarding transferring
amounts out of the guaranteed interest option. 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,
if any dollar cost averaging transfer out of the guaranteed interest option
causes a violation of the 25% outbound restriction, that dollar cost averaging
program will be terminated for the current contract year. A new dollar cost
averaging program can be started in the next or subsequent contract years.
You may request a transfer in writing, by telephone using TOPS or through
EQAccess. You must send in all written transfer requests directly to our
processing office. Transfer requests should specify:
(1) the contract number,
(2) the dollar amounts or percentages of your current account value 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 Accumulator(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.
Frequent transfers, including market timing and other program trading
strategies, may be disruptive to the underlying portfolios in which the
variable investment options invest. Disruptive transfer activity may hurt the
long term performance of a portfolio by, for example, requiring it to maintain
larger amounts of cash or to liquidate portfolio holdings at a disadvantageous
time or price. We currently use the procedures described below to discourage
disruptive transfer activity in AXA Premier VIP Trust and EQ Advisors Trust.
You should understand, however, that these procedures are subject to the
following limitations: (1) they do not eliminate the possibility that
disruptive transfer activity, including market timing, will occur or that
portfolio performance will be affected by such activity; (2) the design of
these procedures involves inherently subjective judgments, which we and AXA
Premier VIP Trust and EQ Advisors Trust seek to make in a fair and reasonable
manner consistent with interests of all policy and contract owners. Certain
frequent transfer activities attempt to exploit inefficiencies in how portfolio
securities are valued. Please see the prospectuses for the underlying
portfolios for more information on how portfolio shares are priced.
If we determine that your transfer patterns are disruptive, 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. 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 reduce disruptive activity, we
monitor the frequency of transfers, including the size of transfers in relation
to portfolio assets, in each underlying portfolio. When a potentially
disruptive transfer into or out of a portfolio occurs on a day when the
portfolio's aggregate deposits or aggregate redemptions exceed our monitoring
threshold, we may take the actions described above to restrict availability of
voice, fax and automated transaction services. We currently apply such action
for the remaining life of each affected contract. We also currently provide a
letter to owners who have engaged in disruptive transfer activity of our
intention to restrict
38 Transferring your money among investment options
access to communication 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 potentially disruptive transfer activity and our monitoring
procedures and thresholds, as well as change our procedures to restrict this
activity.
Our ability to monitor potentially disruptive transfer activity is limited in
certain circumstances. Group annuity contracts may be owned by retirement plans
on whose behalf we provide transfer instructions on an omnibus (aggregate)
basis, which may mask the disruptive transfer activity of individual plan
participants, and/or interfere with our ability to restrict communication
services. Also, underlying portfolios that are not in AXA Premier VIP Trust or
EQ Advisors Trust may be available for investment through companies that may
have policies and procedures regarding disruptive transfer activity that are
different from ours. Please see the prospectuses for those underlying
portfolios for more information.
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 on a contract year basis).
Rebalancing will occur on the same day of the month as the contract date. If a
contract is established after the 28th, rebalancing will occur on the first
business day of the month following the contract issue date.
While your rebalancing program is in effect, we will transfer amounts among the
variable investment options 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. 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; your rebalancing allocations will not be changed; and
the rebalancing program will remain in effect unless you request that it be
canceled in writing. There is no charge for the rebalancing feature.
You may not elect the rebalancing program if you are participating in any
dollar cost averaging program. Rebalancing is not available for amounts you
have allocated in the guaranteed interest option or fixed maturity options.
Transferring your money among investment options 39
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. If you withdraw more than 90% of a
contract's current cash value, we will treat it as a request to surrender the
contract for its cash value. See "Surrendering your contract to receive its
cash value" below. For the tax consequences of withdrawals, see "Tax
information" later in this Prospectus and in the SAI.
Please see "Termination of your contract" in "Determining your contract value"
earlier in this Prospectus and "How withdrawals affect your guaranteed minimum
income benefit and guaranteed minimum death benefit" below for more information
on how withdrawals affect your guaranteed benefits and could potentially cause
your contract to terminate.
- --------------------------------------------------------------------------------
Method of withdrawal
-------------------------------------------------------------
Lifetime
required
Substantially minimum
Contract Lump sum Systematic equal distribution
- --------------------------------------------------------------------------------
NQ Yes Yes No No
- --------------------------------------------------------------------------------
Rollover IRA Yes Yes Yes Yes
- --------------------------------------------------------------------------------
Flexible
Premium IRA Yes Yes Yes Yes
- --------------------------------------------------------------------------------
Roth Conversion
IRA Yes Yes Yes No
- --------------------------------------------------------------------------------
Flexible Premium
Roth IRA Yes Yes Yes No
- --------------------------------------------------------------------------------
Inherited IRA Yes No No **
- --------------------------------------------------------------------------------
QP Yes No No Yes
- --------------------------------------------------------------------------------
Rollover TSA* Yes Yes No Yes
- --------------------------------------------------------------------------------
* For some Rollover TSA contracts, your ability to take withdrawals, loans or
surrender your contract may be limited. You must provide withdrawal
restriction information when you apply for a contract. See "Tax Sheltered
Annuity contracts (TSAs)" in "Tax information" later in this Prospectus
and in the SAI.
** This contract pays out post-death required minimum distributions. See
"Inherited IRA beneficiary continuation contract" in "Contract features
and benefits" earlier in this Prospectus.
LUMP SUM WITHDRAWALS
(All contracts)
You may take lump sum withdrawals from your account value at any time.
(Rollover TSA contracts may have restrictions.) The minimum amount you may
withdraw is $300.
Lump sum withdrawals will be subject to a withdrawal charge if they exceed the
15% free withdrawal amount (see "15% free withdrawal amount" in "Charges and
expenses" later in this Prospectus). Under Rollover TSA contracts, if a loan is
outstanding, you may only take lump sum withdrawals as long as the cash value
remaining after any withdrawal equals at least 10% of the outstanding loan plus
accrued interest.
SYSTEMATIC WITHDRAWALS
(NQ, Rollover TSA, Rollover IRA, Roth Conversion IRA, Flexible Premium IRA and
Flexible Premium Roth IRA contracts)
You may take systematic withdrawals of a particular dollar amount or a
particular percentage of your account value. (Rollover TSA contracts may have
restrictions)
You may take systematic withdrawals on a monthly, quarterly or annual basis as
long as the withdrawals do not exceed the following percentages of your account
value: 1.2% monthly, 3.6% quarterly and 15.0% annually. The minimum amount you
may take in each systematic withdrawal is $250. If the amount withdrawn would
be less than $250 on the date a withdrawal is to be taken, we will not make a
payment and we will terminate your systematic withdrawal election.
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, we
will make the withdrawals on the same calendar day of the month as the contract
date. You must wait at least 28 days after your contract is issued before your
systematic withdrawals can begin.
You may elect to take systematic withdrawals at any time. If you own an IRA
contract, you may elect this withdrawal method only if you are between ages
59-1/2 and 70-1/2.
You may change the payment frequency, or the amount or percentage of your
systematic withdrawals, once each contract year. However, you may not change
the amount or percentage in any contract year in which you have already taken a
lump sum withdrawal. You can cancel the systematic withdrawal option at any
time.
Systematic withdrawals are not subject to a withdrawal charge, except to the
extent that, when added to a lump sum withdrawal previously taken in the same
contract year, the systematic withdrawal exceeds the 15% free withdrawal
amount.
SUBSTANTIALLY EQUAL WITHDRAWALS
(Rollover IRA, Roth Conversion IRA, Flexible Premium IRA and Flexible Premium
Roth IRA contracts)
We offer our "substantially equal withdrawals" option to allow you to receive
distributions from your account value without triggering the 10% additional
federal income tax penalty, which normally applies to distributions made before
age 59-1/2. See "Tax information" later in this Prospectus and in the SAI. We
use one of the IRS-approved methods for doing this; this is not the exclusive
method of meeting this exception. After consultation with your tax adviser, you
may decide to use another method which would require you to compute amounts
yourself and request lump sum withdrawals. In such a case, a withdrawal charge
may apply. Once you begin to take substantially equal with-
40 Accessing your money
drawals, you should not stop them or change the pattern of your withdrawals
until after the later of age 59-1/2 or five full years after the first
withdrawal. If you stop or change the withdrawals or take a lump sum
withdrawal, you may be liable for the 10% federal tax penalty that would have
otherwise been due on prior withdrawals made under this option and for any
interest on the delayed payment of the penalty.
In accordance with IRS guidance, an individual who has elected to receive
substantially equal withdrawals may change, without penalty, from one of the
IRS-approved methods of calculating fixed payments to another IRS-approved
method (similar to the required minimum distribution rules) of calculating
payments which vary each year.
You may elect to take substantially equal withdrawals at any time before age
59-1/2. 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. You may not elect to
receive the first payment in the same contract year in which you took a lump
sum withdrawal. We will calculate the amount of your substantially equal
withdrawals using the IRS-approved method we offer. The payments will be made
monthly, quarterly or annually as you select. These payments will continue
until we receive written notice from you to cancel this option or you take a
lump sum withdrawal. You may elect to start receiving substantially equal
withdrawals again, but the payments may not restart in the same contract year
in which you took a lump sum withdrawal. We will calculate the new withdrawal
amount.
Substantially equal withdrawals are not subject to a withdrawal charge.
LIFETIME REQUIRED MINIMUM DISTRIBUTION WITHDRAWALS
(Rollover IRA, Flexible Premium IRA, QP and Rollover TSA contracts only -- See
"Tax information" later in this Prospectus and in the SAI)
We offer the minimum distribution withdrawal option to help you meet 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 or in any later year. The
minimum amount we will pay out is $250. Currently, minimum distribution
withdrawal payments will be made annually. See "Required minimum distributions"
in "Tax information" later in this Prospectus and in the SAI for your specific
type of retirement arrangement.
Currently, we do not impose a withdrawal charge on minimum distribution
withdrawals if you are enrolled in our "automatic required minimum distribution
(RMD) service" except if, when added to a lump sum withdrawal previously taken
in the same contract year, the minimum distribution withdrawal exceeds the 15%
free withdrawal amount.
Under Rollover TSA contracts, you may not elect minimum distribution
withdrawals if a loan is outstanding.
- --------------------------------------------------------------------------------
For Rollover IRA, Flexible Premium IRA, and Rollover TSA contracts, 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).
- --------------------------------------------------------------------------------
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 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 the withdrawal will be withdrawn
from the fixed maturity options in order of the earliest maturity date(s)
first. A market value adjustment may apply to withdrawals from the fixed
maturity options. If the FMO amounts are insufficient, we will deduct all or a
portion of the withdrawal from the account for special dollar cost averaging.
HOW WITHDRAWALS AFFECT YOUR GUARANTEED MINIMUM INCOME BENEFIT AND GUARANTEED
MINIMUM DEATH BENEFIT
Withdrawals will reduce your guaranteed benefits on either a dollar-for-dollar
basis or on a pro rata basis as explained below:
INCOME BENEFIT AND DEATH BENEFIT
Your applicable benefit base will be reduced on a dollar-for-dollar basis as
long as the sum of your withdrawals in a contract year is 6% or less of the
applicable benefit base on the most recent contract date anniversary. Any
portion of a withdrawal that causes the sum of your withdrawals in a contract
year to exceed 6% of the applicable benefit base on the most recent contract
date anniversary and any subsequent withdrawals in that same contract year will
reduce your applicable benefit base on a pro rata basis.
The timing of your withdrawals and whether they exceed the 6% threshold
described above can have a significant impact on your guaranteed minimum income
benefit or guaranteed minimum death benefit.
Reduction on a dollar-for-dollar basis means that your current benefit will be
reduced by the dollar amount of the withdrawal. 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 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 death benefit was $40,000 before
the withdrawal, it would be reduced by $16,000 ($40,000 x.40) and your new
death benefit after the withdrawal would be $24,000 ($40,000 - $16,000). This
pro rata example assumes that the annual 6% threshold described above has
already been exceeded.
LOANS UNDER ROLLOVER TSA CONTRACTS
You may take loans from a Rollover TSA unless restricted by the employer who
provided the Rollover TSA funds. If you cannot take a loan, or cannot take a
loan without approval from the employer who provided the funds, we will have
this information in our records based on what you and the employer who provided
the funds told us when you purchased your contract. The employer must also tell
us whether special employer plan rules of the Employee Retirement Income
Security Act of 1974 ("ERISA") apply. We will not permit you to take a loan
while you are enrolled in our "automatic required minimum distribution (RMD)
service."
You should read the terms and conditions on our loan request form carefully
before taking out a loan. Under Rollover TSA contracts sub-
Accessing your money 41
ject to ERISA, you may only take a loan with the written consent of your
spouse. Your contract contains further details of the loan provision. Also, see
"Tax information" later in this Prospectus and in the SAI for general rules
applicable to loans.
We will permit you to have only one loan outstanding at a time. The minimum
loan amount is $1,000. The maximum amount is $50,000 or, if less, 50% of your
account value, subject to any limits under the federal income tax rules. The
term of a loan is five years. However, if you use the loan to acquire your
primary residence, the term is 10 years. The term may not extend beyond the
earliest of:
(1) the date annuity payments begin,
(2) the date the contract terminates, and
(3) the date a death benefit is paid (the outstanding loan will be deducted
from the death benefit amount).
A loan request under your Rollover TSA contract will be processed on the first
business day of the month following the date on which the properly completed
loan request form is received. Interest will accrue daily on your outstanding
loan at a rate we set. The loan interest rate will be equal to the Moody's
Corporate Bond Yield Averages for Baa bonds for the calendar month ending two
months before the first day of the calendar quarter in which the rate is
determined.
LOAN RESERVE ACCOUNT. On the date your loan is processed, we will transfer the
amount of your loan to the loan reserve account. Unless you specify otherwise,
we will subtract your loan on a pro rata basis from your value in the variable
investment options and the guaranteed interest option. If these amounts are
insufficient, any additional amount of the loan will be subtracted from the
fixed maturity options in order of the earliest maturity date(s) first. A
market value adjustment may apply. If FMO amounts are insufficient, we will
deduct all or a portion of the loan from the account for special dollar cost
averaging.
We will credit interest to the amount in the loan reserve account at a rate of
2% lower than the loan interest rate that applies for the time your loan is
outstanding. On each contract date anniversary after the date the loan is
processed, we will transfer the amount of interest earned in the loan reserve
account to the variable investment options on a pro rata basis. When you make a
loan repayment, unless you specify otherwise, we will transfer the dollar
amount of the loan repaid from the loan reserve account to the investment
options according to the allocation percentages we have on our records.
SURRENDERING 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. (Rollover
TSA contracts may have restrictions.) 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.
For the tax consequences of surrenders, see "Tax information" later in this
Prospectus and in the SAI.
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, payment of a death benefit, payment of any amount you
withdraw (less any withdrawal charge) and, upon surrender, 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 value in the guaranteed interest
option, fixed maturity options and the account for special dollar cost
averaging (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 10 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
Equitable Accumulator(R) offers you several choices of annuity payout options.
Some enable you to receive fixed annuity payments, which can be either level or
increasing, 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. In addition, if you are exercising your guaranteed minimum
income benefit under the Living Benefit, your choice of payout options are
those that are available under the Living Benefit (see "Our Living Benefit
option" in "Contract features and benefits" earlier in this Prospectus).
- --------------------------------------------------------------------------------
Fixed annuity payout options Life annuity
Life annuity with period certain
Life annuity with refund certain
Period certain annuity
- --------------------------------------------------------------------------------
Variable Immediate Annuity Life annuity (not available in
payout options New York)
Life annuity with period certain
- --------------------------------------------------------------------------------
Income Manager payout options Life annuity with period certain
(available for annuitants age 83 Period certain annuity
or less at contract issue)
- --------------------------------------------------------------------------------
o Life annuity: An annuity that guarantees payments for the rest of the
annuitant's life. Payments end with the last monthly payment
42 Accessing your money
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. A life annuity with
a period certain is the form of annuity under the contract 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.
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 guaranteed 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 OPTIONS
With fixed annuities, we guarantee fixed annuity payments will be based either
on the tables of guaranteed annuity purchase factors in your contract or on our
then current annuity purchase factors, 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 Immediate Annuities may be funded through your choice of available
variable investment options investing in portfolios of EQ Advisors Trust and
AXA Premier VIP Trust. The contract also offers a fixed income annuity payout
option that can be elected in combination with the variable income annuity
payout option. The amount of each variable income 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.
INCOME MANAGER PAYOUT OPTIONS
The Income Manager payout annuity contracts differ from the other payout
annuity contracts. The other payout annuity contracts may provide higher or
lower income levels, but do not have all the features of the Income Manager
payout annuity contract. You may request an illustration of the Income Manager
payout annuity contract from your financial professional. Income Manager payout
options are described in a separate prospectus that is available from your
financial professional. Before you select an Income Manager payout option, you
should read the prospectus which contains important information that you should
know.
Both NQ and IRA Income Manager payout options provide guaranteed level
payments. The Income Manager (life annuity with period certain) also provides
guaranteed increasing payments (NQ contracts only). You may not elect an Income
Manager payout option without life contingencies unless withdrawal charges are
no longer in effect under your Equitable Accumulator(R).
For QP and Rollover TSA contracts, if you want to elect an Income Manager
payout option, we will first roll over amounts in such contract to a Rollover
IRA contract with the plan participant as owner.
You may choose to apply your account value of your Equitable Accumulator(R)
contract to an Income Manager payout annuity. In this case, we will consider
any amounts applied as a withdrawal from your Equitable Accumulator(R) and we
will deduct any applicable withdrawal charge. For the tax consequences of
withdrawals, see "Tax information" later in this Prospectus and in the SAI.
Depending upon your circumstances, an Income Manager contract may be purchased
on a tax-free basis. Please consult your tax advisor. The Income Manager payout
options are not available in all states.
If you purchase an Income Manager contract in connection with the exercise of
the Living Benefit option, different payout options may apply, as well as other
various differences. See "Our Living Benefit option" in "Contract features and
benefits" earlier in this Prospectus, as well as the Income Manager Prospectus.
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 Immediate 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 under
your Equitable Accumulator(R) is imposed if you select a period
Accessing your money 43
certain. If the period certain is more than 5 years, then the withdrawal charge
deducted will not exceed 5% of the account value.
For the Income Manager life contingent payout options, no withdrawal charge is
imposed under the Equitable Accumulator(R). If the withdrawal charge that
otherwise would have been applied to your account value under your Equitable
Accumulator(R) is greater than 2% of the contributions that remain in your
contract at the time you purchase your payout option, the withdrawal charges
under the Income Manager will apply. The year in which your account value is
applied to the payout option will be "contract year 1."
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. The contract owner and annuitant
must meet the issue age and payment requirements.
You can choose the date annuity payments begin but it may not be earlier than
thirteen months from the Equitable Accumulator(R) contract date. Except with
respect to the Income Manager annuity payout options, where payments are made
on the 15th day of each month, 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
annuity maturity date described below:
The amount of the annuity payments will depend on the amount applied to
purchase the annuity and the applicable annuity purchase factors, discussed
earlier.
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.
ANNUITY MATURITY DATE
Your contract has a maturity date by which you must either take a lump sum
withdrawal or select an annuity payout option. The maturity date is generally
the contract date anniversary that follows the annuitant's 95th birthday.
For contracts issued in Pennsylvania and New York, the maturity date is related
to the contract issue date, as follows:
- --------------------------------------------------------------------------------
New York Pennsylvania
- --------------------------------------------------------------------------------
Maximum Maximum
annuitization annuitization
Issue age age Issue age age
- --------------------------------------------------------------------------------
0-80 90 0-75 85
81 91 76 86
82 92 77 87
83 93 78-80 88
84 94 81-85 90
85 95
- --------------------------------------------------------------------------------
This may also be different in other states.
Before the last day by which 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: (i) transfers (if permitted in the
future) among the variable investment options if a Variable Immediate Annuity
payout option is selected; and (ii) withdrawals or contract surrender (subject
to a market value adjustment) if an Income Manager annuity payout option is
chosen.
44 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 An administrative charge
o A distribution charge
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 each contract date anniversary -- an annual administrative charge, if
applicable.
o At the time you make certain withdrawals or surrender your contract -- a
withdrawal charge.
o On each contract date anniversary -- a charge if you elect a death benefit
(other than the Standard death benefit).
o On each contract date anniversary -- a charge for the Living Benefit, if you
elect this optional 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.
o On each contract date anniversary -- a charge for Protection Plus, if you
elect this optional benefit.
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.
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 Standard death
benefit. The daily charge is equivalent to an annual rate of .75% 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 income 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. Lastly,
we assume a mortality risk to the extent that at the time of death, the
guaranteed minimum 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.
ADMINISTRATIVE CHARGE
We deduct a daily charge from the net assets in each variable investment
option. The charge, together with the annual administrative charge described
below, is to compensate us for administrative expenses under the contracts. The
daily charge is equivalent to an annual rate of 0.25% of the net assets in each
variable investment option.
DISTRIBUTION CHARGE
We deduct a daily charge from the net assets in each variable investment option
to compensate us for a portion of our sales expenses under the contracts. The
daily charge is equivalent to an annual rate of 0.20% of the net assets in each
variable investment option.
ANNUAL ADMINISTRATIVE CHARGE
We deduct an administrative charge from your account value on each contract
date anniversary. We deduct the charge if your account value on the last
business day of the contract year is less than $50,000. If your account value
on such date is $50,000 or more, we do not deduct the charge. During the first
two contract years, the charge is equal to $30 or, if less, 2% of your account
value. The charge is $30 for contract years three and later.
We will deduct this charge from your value in the variable investment options
and the guaranteed interest option (if permitted in your state) on a pro rata
basis. If those amounts are insufficient, we will deduct all or a portion of
the charge from the fixed maturity options in order of the earliest maturity
date(s) first. A market value adjustment may apply. If the FMO amounts are
insufficient, we will deduct all or a portion of the charge from the account
for special dollar cost averaging. If you surrender your contract during the
contract year, we will deduct a pro rata portion of the charge.
If your account value is insufficient to pay this charge, your contract will
terminate without value and you will lose any applicable guaranteed benefits.
Please see "Termination of your contract" in "Determining your contract value"
earlier in this Prospectus.
WITHDRAWAL CHARGE
A withdrawal charge applies in two circumstances: (1) if you make one or more
withdrawals during a contract year that, in total, exceed the 15% free
withdrawal amount, described below, or (2) if you surrender your contract to
receive its cash value or apply your cash value to a non-life contingent payout
option.
The withdrawal charge equals a percentage of the contributions withdrawn. The
percentage that applies depends on how long each
Charges and expenses 45
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% 7% 6% 6% 5% 3% 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 your contract as withdrawn first. See "Tax
information" later in this Prospectus and in the SAI.
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.
In order to give you the exact dollar amount of the withdrawal you request, we
deduct the amount of the withdrawal and 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 charge in proportion to the
amount of the withdrawal subtracted from each investment option. The withdrawal
charge helps cover our sales expenses.
For annuitants that are ages 84 and 85 when the contract is issued in
Pennsylvania, the withdrawal charge will be computed in the same manner as for
other contracts, except that the withdrawal charge schedule will be different.
For these contracts, the withdrawal charge schedule will be 5% of each
contribution made in the first contract year, decreasing by 1% each subsequent
contract year to 0% in the sixth and later contract years.
The withdrawal charge does not apply in the circumstances described below.
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 beginning of each contract
year, or in the case of the first contract year, your initial contribution,
minus any other withdrawals made during the contract year. The 15% free
withdrawal amount does not apply if you surrender your contract except where
required by law.
For NQ contracts issued to a charitable remainder trust, the free withdrawal
amount will equal the greater of: (1) the current account value less
contributions that have not been withdrawn (earnings in the contract) and (2)
the 15% free withdrawal amount defined above.
Disability, terminal illness or confinement to nursing home.
The withdrawal charge 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, or U.S.
Virgin Islands) 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, if the conditions described in (i), (ii) or
(iii) above existed at the time a contribution was remitted or if the condition
began within 12 months of the 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 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
7% and will be determined by applying the New York Alternate Scale I shown
below. If you withdraw amounts that have been transferred from one fixed
maturity option to another, we use the New York Alternate Scale II (also shown
below) if it produces a higher charge than Alternate Scale I.
The New York withdrawal charge may not exceed the withdrawal charge that would
normally apply to the contract. If a contribution has been in the contract for
more than 7 years and therefore would have no withdrawal charge, no withdrawal
charge will apply. Use of a New York Alternate Scale can only result in a lower
charge. We will compare the result of applying Alternate Scale I or II, as the
case may be, to the result of applying the normal withdrawal charge, and will
charge the lower withdrawal charge.
46 Charges and expenses
- -----------------------------------------------
NY Alternate NY Alternate
Scale I Scale II
- -----------------------------------------------
Year of transfer
Year of investment within fixed
in fixed maturity maturity
option* option*
- -----------------------------------------------
Within year 1 7% 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%
- -----------------------------------------------
7 1%
- -----------------------------------------------
After year 7 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
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.
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 with the shortest available maturity. If we are not
offering other fixed maturity options, we will transfer your maturity value to
the EQ/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 what
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.
We will deduct the annual administrative charge and the withdrawal charge from
the variable investment options and the guaranteed interest option as discussed
above. If the amounts in those options are insufficient to cover the charges,
we reserve the right to deduct the charges from the fixed maturity options.
Charges deducted from the fixed maturity options are considered withdrawals
and, as such, will result in a market value adjustment.
GUARANTEED MINIMUM DEATH BENEFIT CHARGE
Annual ratchet to age 85. If you elect the Annual ratchet to age 85 enhanced
death benefit, we deduct a charge annually from your account value on each
contract date anniversary for which it is in effect. The charge is equal to
0.30% of the Annual ratchet to age 85 benefit base.
6% Roll up to age 85. If you elect the 6% Roll up to age 85 enhanced death
benefit, we deduct a charge annually from your account value on each contract
date anniversary for which it is in effect. The charge is equal to 0.45% of the
6% Roll up to age 85 benefit base.
Greater of 6% Roll up to age 85 or Annual ratchet to age 85. If you elect this
enhanced death benefit, we deduct a charge annually from your account value on
each contract date anniversary for which it is in effect. The charge is equal
to 0.60% of the greater of the 6% Roll up to age 85 or the Annual ratchet to
age 85 benefit base for which it is in effect.
We will deduct this charge from your value in the variable investment options
and the guaranteed interest option on a pro-rata basis. If these amounts are
insufficient, we will deduct all or a portion of the charge from the fixed
maturity options in order of the earliest maturity date(s) first. A market
value adjustment may apply. If the FMO amounts are insufficient, we will deduct
all or a portion of the charge from the account for special dollar cost
averaging.
If your account value is insufficient to pay this charge, your contract will
terminate without value and you will lose any applicable guaranteed benefits.
Please see "Termination of your contract" in "Determining your contract value"
earlier in this Prospectus.
There is no additional charge for the Standard death benefit.
LIVING BENEFIT CHARGE
If you elect the Living Benefit, we deduct a charge annually from your account
value on each contract date anniversary until such time as you exercise the
guaranteed minimum income benefit, elect another annuity payout option, or the
contract date anniversary after the annuitant reaches age 85, whichever occurs
first. The charge is equal to 0.60% of the applicable benefit base in effect on
the contract date anniversary.
We will deduct this charge from your value in the variable investment options
and the guaranteed interest option on a pro rata basis. If those amounts are
insufficient, we will deduct all or a portion of the charge from the fixed
maturity options in order of the earliest maturity date(s) first. A market
value adjustment may apply. If the FMO amounts are insufficient, we will deduct
all or a portion of the charge from the account for special dollar cost
averaging.
If your account value is insufficient to pay this charge, your contract will
terminate without value and you will lose any applicable guaranteed benefits.
Please see "Termination of your contract" in "Determining your contract value"
earlier in this Prospectus.
PROTECTION PLUS CHARGE
If you elect Protection Plus, we deduct a charge annually from your account
value on each contract date anniversary for which it is in effect. The charge
is equal to 0.35% of the account value on each contract date anniversary. We
will deduct this charge from your value in the variable investment options and
the guaranteed interest option on a pro rata basis. If those amounts are
insufficient, we will deduct all or a portion of the charge from the fixed
maturity options in the order of the earliest maturity date(s) first. A market
value adjustment may apply. If the FMO amounts are insufficient, we will deduct
all or a portion of the charge from the account for special dollar cost
averaging.
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 pay-
Charges and expenses 47
out option. The current tax charge that might be imposed varies by jurisdiction
and ranges from 0% to 3.5%.
VARIABLE IMMEDIATE ANNUITY PAYOUT OPTION ADMINISTRATIVE FEE
We deduct a fee of $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 Management fees ranging from 0.10% to 1.50%.
o 12b-1 fees of either 0.25% or 0.35%.
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 prospectuses for the Trusts.
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 guaranteed minimum income
benefit or the guaranteed minimum death benefit, or offer variable investment
options that invest in shares of the Trusts 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 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,
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.
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 would be
unfairly discriminatory.
48 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.
Under jointly owned contracts, the surviving owner is considered the
beneficiary, and will take the place of any other beneficiary. You may be
limited as to the beneficiary you can designate in a Rollover TSA contract. In
a QP contract, the beneficiary must be the trustee. Where an NQ contract is
owned by a minor pursuant to the Uniform Gift to Minors Act or the Uniform
Transfers to Minors Act, the beneficiary must be the estate of the annuitant.
Where an IRA contract is owned in a custodial individual retirement account,
the custodian must be the beneficiary so that the custodian can reinvest or
distribute the death benefit as the beneficiary of the account desires.
The death benefit is equal to your account value (without adjustment for any
otherwise applicable negative market value adjustment) or, if greater, the
applicable guaranteed minimum death benefit. We determine the amount of the
death benefit (other than the applicable guaranteed minimum death benefit) and
any amount applicable under the Protection Plus feature, 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.
The amount of the applicable guaranteed minimum death benefit will be such
guaranteed minimum death benefit as of the date of the annuitant's death
adjusted for any subsequent withdrawals. The death benefit will be less a
deduction for any outstanding loan plus accrued interest on the date that the
death benefit payment is made (applies to Rollover TSA only).
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, a
surviving spouse of the deceased owner/annuitant can choose to be treated as
the successor owner/annuitant and continue the contract. Only a spouse who is
the sole primary beneficiary can be a successor owner/annuitant. The successor
owner/annuitant feature is only available under NQ and individually owned IRA
contracts (other than Inherited IRAs).
For NQ and 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.
When the owner is not the annuitant under an NQ contract and the owner dies
before annuity payments begin, the beneficiary named to receive the death
benefit upon the annuitant's death will become the successor owner. If you do
not want this beneficiary 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. The surviving
owner automatically takes the place of any other beneficiary designation.
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.
An eligible successor owner, including a surviving joint owner after the first
owner dies, may elect the beneficiary continuation option for NQ contracts
discussed in "Beneficiary continuation option" below.
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.
SUCCESSOR OWNER AND ANNUITANT
If you are both the contract owner and the annuitant, and your spouse is the
sole primary beneficiary or the joint owner, then your spouse may elect to
receive the death benefit or continue the contract as successor
owner/annuitant.
Payment of death benefit 49
If your surviving spouse decides to continue the contract, then as of the date
we receive satisfactory proof of your death, any required instructions,
information and forms necessary to effect the successor owner/annuitant
feature, we will increase the account value to equal your elected guaranteed
minimum death benefit as of the date of your death if such death benefit is
greater than such account value, plus any amount applicable under the
Protection Plus feature, and adjusted for any subsequent withdrawals. 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 considered to be withdrawn
only after all other amounts have been withdrawn. In determining whether your
applicable guaranteed minimum death benefit option will continue to grow, we
will use your surviving spouse's age (as of the date we receive satisfactory
proof of your death, any required instructions and the information and forms
necessary to effect the successor owner/annuitant feature).
Where a NQ contract is owned by a Living Trust, as defined in the contract, and
at the time of the annuitant's death the annuitant's spouse is the sole
beneficiary of the Living Trust, the Trustee, as owner of the contract, may
request that the spouse be substituted as annuitant as of the date of the
annuitant's death. No further change of annuitant will be permitted.
Where an IRA contract is owned in a custodial individual retirement account,
and your spouse is the sole beneficiary of the account, the custodian may
request that the spouse be substituted as annuitant after your death.
BENEFICIARY CONTINUATION OPTION
This feature permits a designated individual, on the contract owner's death, to
maintain a contract in the deceased contract owner's 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, Roth IRA and NQ contracts, subject to state availability. Please speak
with your financial professional for further information.
BENEFICIARY CONTINUATION OPTION FOR TRADITIONAL IRA AND ROTH IRA CONTRACTS
ONLY. The beneficiary continuation option must be elected by September 30th of
the year following the calendar year of your death and before any other
inconsistent election is made. Beneficiaries who do not make a timely election
will not be eligible for this 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 applicable death
benefit if such death benefit is greater than such account value, plus any
amount applicable under the Protection Plus feature, adjusted for any
subsequent withdrawals. Where an IRA contract is owned in a custodial
individual retirement account, the custodian may reinvest the death benefit in
an individual retirement annuity contract, using the account beneficiary as the
annuitant. Please speak with your financial professional for further
information.
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. For sole
spousal beneficiaries, payments may begin by December 31st of the calendar year
in which you would have reached age 70-1/2, if such time is later. For
traditional IRA contracts only, if you die before your Required Beginning Date
for Required Minimum Distributions, as discussed in the Statement of Additional
Information, the beneficiary may choose the "5-year rule" option instead of
annual payments over life expectancy. The 5-year rule is always available to
beneficiaries under Roth IRA contracts. If the beneficiary chooses this option,
the beneficiary may take withdrawals as desired, but the entire account value
must be fully withdrawn by December 31st of the calendar year which contains
the fifth anniversary of your death.
Under the beneficiary continuation option for IRA and Roth IRA
contracts:
o The contract continues in your name for the benefit of your beneficiary.
o This feature is only available if the beneficiary is an individual. Certain
trusts with only individual beneficiaries will be treated as individuals
for this purpose.
o If there is more than one beneficiary, each beneficiary's share will be
separately accounted for. It will be distributed over the beneficiary's
own life expectancy, if payments over life expectancy are chosen.
o The minimum amount that is required in order to elect the beneficiary
continuation option is $5,000 for each beneficiary.
o The beneficiary may make transfers among the investment options but no
additional contributions will be permitted.
o If you had elected the guaranteed minimum income benefit or an optional
enhanced death benefit under the contract, they will no longer be in
effect and charges for such benefits will stop. Also, any minimum death
benefit feature 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, if any, will apply.
o 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 required 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.
BENEFICIARY CONTINUATION OPTION FOR NQ CONTRACTS ONLY. This feature, also known
as Inherited annuity, may only be elected when the NQ
50 Payment of death benefit
contract owner dies before the annuity commencement date, whether or not the
owner and the annuitant are the same person. If the owner and annuitant are
different and the owner dies before the annuitant, for purposes of this
discussion, "beneficiary" refers to the successor owner. For a discussion of
successor owner, see "When an NQ contract owner dies before the annuitant"
earlier in this section. This feature must be elected within 9 months following
the date of your death and before any other inconsistent election is made.
Beneficiaries who do not make a timely election will not be eligible for this
option.
Generally, payments will be made once a year to the beneficiary over the
beneficiary's life expectancy, determined on a term certain basis and in the
year payments start. These payments must begin no later than one year after the
date of your death and are referred to as "scheduled payments." The beneficiary
may choose the "5-year rule" instead of scheduled payments over life
expectancy. If the beneficiary chooses the 5-year rule, there will be no
scheduled payments. Under the 5-year rule, the beneficiary may take withdrawals
as desired, but the entire account value must be fully withdrawn by the fifth
anniversary of your death.
Under the beneficiary continuation option for NQ contracts (regardless of
whether the owner and annuitant are the same person):
o This feature is only available if the beneficiary is an individual. It is
not available for any entity such as a trust, even if all of the
beneficiaries of the trust are individuals.
o The contract continues in your name for the benefit of your beneficiary.
o If there is more than one beneficiary, each beneficiary's share will be
separately accounted for. It will be distributed over the respective
beneficiary's own life expectancy, if scheduled payments are chosen.
o The minimum amount that is required in order to elect the beneficiary
continuation option is $5,000 for each beneficiary.
o The beneficiary may make transfers among the investment options but no
additional contributions will be permitted.
o If you had elected the guaranteed minimum income benefit or an optional
enhanced death benefit under the contract, they will no longer be in
effect and charges for such benefits will stop. Also, any minimum death
benefit feature will no longer be in effect.
o If the beneficiary chooses the "5-year rule," withdrawals may be made at
any time. If the beneficiary instead chooses scheduled payments, the
beneficiary must also choose between two potential withdrawal options at
the time of election. If the beneficiary chooses "Withdrawal Option 1",
the beneficiary cannot later withdraw funds in addition to the scheduled
payments the beneficiary is receiving; "Withdrawal Option 1" permits total
surrender only. "Withdrawal Option 2" permits the beneficiary to take
withdrawals, in addition to scheduled payments, at any time. However, the
scheduled payments under "Withdrawal Option 1" are afforded favorable tax
treatment as "annuity payments." See "Taxation of nonqualified annuities"
in "Tax Information" later in this Prospectus.
o Any partial withdrawals must be at least $300.
o Your beneficiary will have the right to name a beneficiary to receive any
remaining interest in the contract on the beneficiary's death.
o Upon the death of your beneficiary, the beneficiary he or she has named has
the option to either continue taking scheduled payments based on the
remaining life expectancy of the deceased beneficiary (if scheduled
payments were chosen) or to receive any remaining interest in the contract
in a lump sum. We will pay any remaining interest in the contract in a
lump sum if your beneficiary elects the 5-year rule. 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.
If you are both the owner and annuitant:
o 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 annuity account value to
equal the applicable death benefit if such death benefit is greater than
such account value, plus any amount applicable under the Protection Plus
feature, adjusted for any subsequent withdrawals.
o No withdrawal charges will apply to any withdrawals by the
beneficiary.
If the owner and annuitant are not the same person:
o If the beneficiary continuation option is elected, the beneficiary
automatically becomes the new annuitant of the contract, replacing the
existing annuitant.
o The annuity account value will not be reset to the death benefit amount.
o The contract's withdrawal charge schedule will continue to be applied to
any withdrawal or surrender other than scheduled payments; the contract's
free corridor amount will continue to apply to withdrawals but does not
apply to surrenders.
o We do not impose a withdrawal charge on scheduled payments except if, when
added to any withdrawals previously taken in the same contract year,
including for this purpose a contract surrender, the total amount of
withdrawals and scheduled payments exceed the free corridor amount. See
the "Withdrawal charges" in "Charges and expenses" earlier in this
Prospectus.
If a contract is jointly owned:
o The surviving owner supersedes any other named beneficiary and may elect
the beneficiary continuation option.
o If the deceased joint owner was also the annuitant, see "If you are both
the owner and annuitant" earlier in this section.
o If the deceased joint owner was not the annuitant, see "If the owner and
annuitant are not the same person" earlier in this section.
Payment of death benefit 51
7. Tax information
- --------------------------------------------------------------------------------
OVERVIEW
In this part of the prospectus, we discuss the current federal income tax rules
that generally apply to Equitable Accumulator(R) contracts owned by United
States individual taxpayers. The tax rules can differ, depending on the type of
contract, whether NQ, traditional IRA, Roth IRA, QP or TSA. 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
without notice. 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 or values under the contract, or payments under the contract,
for example, amounts due to beneficiaries, may be subject to federal or state
gift, estate, or inheritance 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 be
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 adviser 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") and Code Section 403(b)
Arrangements ("TSAs"), respectively: an IRA or 403(b) annuity contract such as
this one, or an IRA or 403(b)(7) custodial or other qualified account. Annuity
contracts can also be purchased in connection with retirement 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. More information on IRAs and TSAs is provided
in the SAI. 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 Accumulator's(R) choice of death benefits and the Living
Benefit guaranteed minimum income benefit, Special Dollar Cost Averaging,
selection of investment funds, guaranteed interest option, fixed maturity
options and its 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 arrangements. You should be aware that cost may vary
depending on the features and benefits made available and the charges and
expenses of the investment options or funds that you elect. Although certain
provisions of the Temporary Regulations on required minimum distributions
concerning the actuarial value of additional contract benefits, which could
have increased the amount required to be distributed from annuity contracts
funding qualified plans, TSAs and IRAs have currently been suspended these or
similar provisions may apply in future years. You may want to discuss with your
tax adviser the potential implication of these Regulations before you purchase
this annuity contract or purchase additional features under this annuity
contract. See also Appendix II at the end of this Prospectus for a discussion
of QP contracts.
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 the 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).
52 Tax information
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 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.
PROTECTION PLUS FEATURE
In order to enhance the amount of the death benefit to be paid at the
annuitant's death, you may purchase a Protection Plus rider for your NQ
contract. Although we regard this benefit as an investment protection feature
which is part of the contract and which should have no adverse tax effect, it
is possible that the IRS could take a contrary position or assert that the
Protection Plus rider is not part of the contract. In such a case the charges
for the Protection Plus rider could be treated for federal income tax purposes
as a partial withdrawal from the contract. If this were so, such a deemed
withdrawal could be taxable, and for contract owners under age 59-1/2, also
subject to a tax penalty. Were the IRS to take this position, Equitable would
take all reasonable steps to attempt to avoid this result, which could include
amending the contract (with appropriate notice to you).
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
Equitable Accumulator(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 Equitable Accumulator(R) NQ contract.
An owner may 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.
BENEFICIARY CONTINUATION OPTION
We have received a private letter ruling from the IRS regarding certain tax
consequences of scheduled payments under the beneficiary continuation option
for NQ contracts. See the discussion "Beneficiary continuation option for NQ
Contracts only" in "Payment of death benefit" earlier in this Prospectus. Among
other things, the IRS rules that:
o scheduled payments under the beneficiary continuation option for NQ contracts
satisfy the death of owner rules of Section 72(s)(2) of the Code,
regardless of whether the beneficiary elects Withdrawal Option 1 or
Withdrawal Option 2;
o scheduled payments, any additional withdrawals under Withdrawal Option 2, or
contract surrenders under Withdrawal Option 1 will only be taxable to the
beneficiary when amounts are actually paid, regardless of the Withdrawal
Option selected by the beneficiary;
o a beneficiary who irrevocably elects scheduled payments with Withdrawal
Option 1 will receive "excludable amount" tax treatment on scheduled
payments. See "Annuity payments" earlier in this section. If the
beneficiary elects to surrender the contract before all scheduled payments
are paid, the amount received upon surrender is a non-annuity payment
taxable to the extent it exceeds any remaining investment in the contract.
The ruling specifically does not address the taxation of any payments received
by a beneficiary electing Withdrawal Option 2 (whether scheduled payments or
any withdrawal that might be taken). There is no assurance that we will receive
any further rulings addressing the
Tax information 53
tax consequences of payments under Withdrawal Option 2. Before electing the
beneficiary continuation option feature, the individuals you designate as
beneficiary or successor owner should discuss with their tax advisers the
consequences of such elections.
The tax treatment of a withdrawal after the death of the owner taken as a
single sum or taken as withdrawals under the 5-year rule is generally the same
as the tax treatment of a withdrawal from or surrender of 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, in accordance with IRS formulas.
INVESTOR CONTROL ISSUES
Under certain circumstances, the IRS has stated that you could be treated as
the owner (for tax purposes) of the assets of Separate Accounts 45 and 49. If
you were treated as the owner, you would be taxable on income and gains
attributable to the shares of the underlying portfolios.
The circumstances that would lead to this tax treatment would be that, in the
opinion of the IRS, you could control the underlying investment of Separate
Accounts 45 and 49. Recently, the IRS has said that the owners of variable
annuities will not be treated as owning the separate account assets provided
the underlying portfolios are restricted to variable life and annuity assets.
The variable annuity owners must have the right only to choose among the
portfolios, and must have no right to direct the particular investment
decisions within the portfolios.
Although we believe that, under current IRS guidance, you would not be treated
as the owner of the assets of Separate Accounts 45 and 49, there are some
issues that remain unclear. For example, the IRS has not issued any guidance as
to whether having a larger number of portfolios available, or an unlimited
right to transfer among them, could cause you to be treated as the owner. We do
not know whether the IRS will ever provide such guidance or whether such
guidance, if unfavorable, would apply retroactively to your contract.
Furthermore, the IRS could reverse its current guidance at any time. We reserve
the right to modify your contract as necessary to prevent you from being
treated as the owner of the assets of Separate Accounts 45 and 49.
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 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; and
o Roth IRAs, 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 (http://www.irs.gov).
Equitable Life designs its IRA contracts to qualify as individual retirement
annuities under Section 408(b) of the Internal Revenue Code. You may purchase
the contract as a traditional IRA or Roth IRA. The traditional IRAs we offer
are the Rollover IRA and Flexible Premium IRA. The versions of the Roth IRA
available are the Roth Conversion IRA and Flexible Premium Roth IRA. We also
offer the Inherited IRA for payment of post death required minimum
distributions in traditional IRA and Roth IRA. The SAI contains the information
that the IRS requires you to have before you purchase an IRA. The disclosure
generally assumes direct ownership of the individual retirement annuity
contract. For contracts owned in a custodial individual retirement account, the
disclosure will apply only if you terminate your account or transfer ownership
of the contract to yourself.
We have received an opinion letter from the IRS approving the respective forms
of the Equitable Accumulator(R) traditional and Roth IRA
54 Tax information
contracts, as amended to reflect recent tax law changes, 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 contracts
submitted for IRS approval do not include every feature possibly available
under the Equitable Accumulator(R) traditional and Roth IRA contracts.
The Inherited IRA beneficiary continuation contract has not been submitted to
the IRS for approval as to form for use as a traditional IRA or Roth IRA.
Equitable intends to submit both traditional and Roth IRA versions of the
contract for formal approval, respectively. However, it is not clear whether
and when such approval may be received.
PROTECTION PLUS(SM) FEATURE
The Protection Plus feature is offered for IRA contracts, subject to state and
contract availability. We have received IRS opinion letters that the contract
with a Protection Plus feature qualifies 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 contracts submitted for IRS approval do not
include every feature possibly available under the Equitable Accumulator(R)
traditional and Roth IRA contracts. You should discuss with your tax adviser
whether you should consider purchasing an Accumulator(R) IRA or Accumulator(R)
Roth IRA with the optional Protection Plus feature.
CONTRIBUTIONS
Individuals may make three different types of contributions to an 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 IRAs of the same type
("direct transfers").
In addition, an individual may make a taxable rollover contribution from a
traditional IRA to a Roth IRA ("conversion" contributions).
Contributions to all types of IRAs are compensation-based. They are either made
from your current compensation or have a connection with past compensation (for
example, rollover contributions from an eligible retirement plan that you had
with an employer related to past compensation). Under certain circumstances,
your nonworking spouse, former spouse or surviving spouse may contribute to an
IRA. You can make regular contributions for any year to a traditional IRA
within federal tax limits up until the calendar year you reach age 70-1/2.
Regular contributions for any year to a Roth IRA can be made at any time during
your life, subject to federal tax law limits.
The amount of contributions you may make to an IRA for any year and whether
such contributions are eligible for special tax treatment (for example,
deductibility from income or a special credit) may vary, depending on your
income, age and whether you participate in an employer-sponsored retirement
plan. Roth IRA contributions are not tax deductible. The maximum regular
contribution that can be made to all of your IRAs (whether traditional or Roth)
for the taxable year for which the contribution is made is $3,000 for 2004 and
$4,000 for 2005. The maximum regular contribution is increased to $3,500 for
2004 and $4,500 for 2005 if you are at least age 50 at any time during the
taxable year for which the contribution is made.
Rollover and transfer contributions are not subject to dollar limits. Rollover
contributions may be made to a traditional IRA from "eligible retirement plans"
which include other traditional IRAs, qualified plans, TSAs and governmental
employer 457(b) plans. For Roth IRAs, rollover contributions may be made from
other Roth IRAs and traditional IRAs. The conversion of a traditional IRA to a
Roth IRA is taxable. Direct transfer contributions may only be made directly
from one traditional IRA to another or from one Roth IRA to another.
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 adviser 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.
A more complete discussion of contributions to traditional IRAs and Roth IRAs
is contained in the SAI.
WITHDRAWALS AND DISTRIBUTIONS
You can withdraw any or all of your funds from an IRA at any time; you do not
need to wait for a special event like retirement. Earnings in IRAs are not
subject to federal income tax until amounts are paid to you or your
beneficiary. Withdrawals from an IRA, surrender of an IRA, death benefits from
an IRA and annuity payments from an IRA may be fully or partially taxable.
Withdrawals and distributions from IRAs are taxable as ordinary income (not
capital gain).
Payments from traditional IRAs and Roth IRAs are taxed differently. Payments
from traditional IRAs are generally fully taxable unless you have made
nondeductible regular contributions or rolled over after-tax contributions. In
any event, the issuer of the traditional IRA is entitled to report the
distribution as fully taxable and it is your responsibility to calculate the
taxable and tax-free portions of any traditional IRA payments on your own tax
returns.
Distributions from Roth IRAs generally receive return of contribution treatment
first under federal income tax calculation rules before any income is taxable.
Certain distributions from Roth IRAs may qualify for fully tax-free treatment.
These are distributions after you reach age 59-1/2, die, become disabled or meet
a qualified first-time homebuyer tax rule. You also have to meet a five-year
aging period.
A distribution from a traditional IRA will not be taxable if it is rolled over
to an eligible retirement plan. A distribution from a Roth IRA will not be
taxable if it is rolled over to another Roth IRA.
Taxable withdrawals or distributions from IRAs may be subject to an additional
10% penalty tax if you are under age 59-1/2, unless an exception applies.
Tax information 55
Traditional IRAs are subject to required minimum distribution rules which
require that amounts begin to be distributed in a prescribed manner from the
IRA after the owner reaches age 70-1/2. These rules also require distributions
after the owner's death. No distributions are required to be made from Roth
IRAs until after the Roth IRA owner's death, but then the required minimum
distribution rules apply.
A more complete discussion of the tax aspects of withdrawals and distributions
for traditional IRAs and Roth IRAs is contained in the SAI.
SPECIAL RULES FOR CONTRACTS FUNDING QUALIFIED PLANS
For QP contracts, your plan administrator or trustee notifies you as to tax
consequences. See Appendix II at the end of this Prospectus.
TAX-SHELTERED ANNUITY CONTRACTS (TSAS)
GENERAL
This section of the prospectus covers some of the special tax rules that apply
to annuity contracts under Section 403(b) of the Internal Revenue Code (TSAs).
Generally, there are two types of funding vehicles available for 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.
PROTECTION PLUS FEATURE
The Protection Plus feature is offered for Rollover TSA contracts, subject to
state and contract availability. There is no assurance that the contract with
the Protection Plus feature meets the qualification requirements for TSAs.
There is a limit to the amount of life insurance benefits that TSAs may offer.
Although we view the optional Protection Plus benefit as an investment
protection feature which should have no adverse tax effect and not as a life
insurance benefit, it is possible that the IRS could take a contrary position
regarding tax qualification or assert that the Protection Plus rider is not a
permissible part of a TSA contract. If the IRS were to take the position that
the optional Protection Plus benefit is not part of the contract, in such a
case, the charges for the Protection Plus rider could be treated for federal
income tax purposes as a partial withdrawal from the contract. If this were so,
such a deemed withdrawal could affect the tax qualification of the TSA and
could be taxable. Were the IRS to take any adverse position, Equitable would
take all reasonable steps to attempt to avoid any adverse result, which would
include amending the contract (with appropriate notice to you). You should
discuss with your tax adviser whether you should consider purchasing an
Accumulator(R) Rollover TSA contract with the optional Protection Plus feature.
CONTRIBUTIONS TO TSAS
There are two ways you can make contributions to this Equitable Accumulator(R)
Rollover TSA contract:
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.
If you make a direct transfer, you must fill out our transfer form.
ROLLOVER OR DIRECT TRANSFER CONTRIBUTIONS. You must establish your TSA with
funds that are directly transferred from another 403(b) arrangement or rolled
over from another 403(b) arrangement. You may make subsequent rollover
contributions to your Rollover TSA contract from these sources: qualified
plans, governmental employer 457(b) plans, and traditional IRAs as well as
other TSAs and 403(b) arrangements . All rollover contributions must be pre-tax
funds only with appropriate documentation satisfactory to us.
You should discuss with your tax adviser 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.
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 Equitable Accumulator(R) contract receiving the funds has provisions at
least as restrictive as the source contract.
Before you transfer funds to an Equitable Accumulator(R) Rollover TSA contract,
you may have to obtain your employer's authorization or demonstrate that you do
not need employer authorization.
Contributions to TSAs are discussed in greater detail in the SAI.
DISTRIBUTIONS FROM 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. Your employer will tell us this when you establish the TSA through
a direct transfer.
You may also need spousal consent for certain transactions and
payments.
WITHDRAWAL RESTRICTIONS. If this is a Revenue Ruling 90-24 direct transfer, we
will treat all amounts transferred to this contract and any future earnings on
the amount transferred as not eligible for withdrawal until one of the
following events happens:
o you are severed from employment with the employer which provided the funds to
purchase the TSA you are transferring to the Equitable Accumulator(R)
Rollover TSA; or
o you reach age 59-1/2; or
o you die; or
o you become disabled (special federal income tax definition); or
o you take a hardship withdrawal (special federal income tax definition).
56 Tax information
The amount of funds subject to withdrawal restrictions may depend on the source
of the funds used to establish the Accumulator(R) TSA.
TAX TREATMENT OF DISTRIBUTIONS. Amounts held under TSAs are generally not
subject to federal income tax until benefits are distributed. Distributions
include withdrawals from your TSA contract and annuity payments from your TSA
contract. Death benefits paid to a beneficiary are also taxable distributions.
Unless an exception applies, amounts distributed from TSAs are includable in
gross income as ordinary income. Distributions from TSAs may be subject to 20%
federal income tax withholding. See "Federal and state income tax withholding
and information reporting" below. In addition, TSA distributions may be subject
to additional tax penalties.
If you have made after-tax contributions, you will have a tax basis in your TSA
contract, which will be recovered tax-free. Since we currently do not accept
after-tax funds, we do not track your investment in the contract, if any. We
will report all distributions from this Rollover TSA as fully taxable. It is
your responsibility to determine how much of the distribution is taxable.
A penalty tax of 10% of the taxable portion of a distribution applies to
distributions from TSAs before you reach age 59-1/2 unless an exception applies.
Distributions from TSAs are discussed in greater detail in the SAI.
LOANS FROM TSAS
Loans are generally not treated as a taxable distribution. You may take loans
from a TSA unless restricted by the employer (for example, under an employer
plan subject to ERISA). If you cannot take a loan, or cannot take a loan
without approval from the employer who provided the funds, we will have this
information in our records based on what you and the employer who provided the
TSA funds told us when you purchased your contract.
Loans from TSAs are discussed in greater detail in the SAI.
TAX-DEFERRED ROLLOVERS AND DIRECT TRANSFERS
You may roll over an "eligible rollover distribution" from a TSA into another
eligible retirement plan (a qualified plan, a governmental employer 457(b) plan
(separate accounting required), another TSA or a traditional IRA) which agrees
to accept the rollover.
A spousal beneficiary may also roll over death benefits or certain
divorce-related payments.
Direct transfers of TSA funds from one TSA to another under Revenue Ruling
90-24 are not distributions.
Rollovers and transfers from TSAs are discussed in greater detail in the SAI.
REQUIRED MINIMUM DISTRIBUTIONS
TSAs are subject to required minimum distribution rules beginning at age 70-1/2
or separation from service, if later. These rules are discussed in greater
detail in the SAI.
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 $17,280 in periodic
Tax information 57
annuity payments in 2004, 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), 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.
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 AND QUALIFIED PLAN DISTRIBUTIONS
Unless you have the distribution go directly to the new plan, eligible rollover
distributions from qualified plans and TSAs are subject to mandatory 20%
withholding. The plan administrator is responsible for withholding from
qualified plan distributions. An eligible rollover distribution from a TSA or a
qualified plan can be rolled over to another eligible retirement plan. All
distributions from a TSA 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 from service with the employer; 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
o substantially equal periodic payments made for a specified period of 10 years
or more; or
o hardship withdrawals; 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.
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 No. 49 for taxes. We
do not now, but may in the future set up reserves for such taxes.
58 Tax information
8. More information
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ABOUT SEPARATE ACCOUNT NO. 49
Each variable investment option is a subaccount of Separate Account No. 49. We
established Separate Account No. 49 in 1996 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 No. 49 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 No. 49 operations are
accounted for without regard to Equitable Life's other operations.
Separate Account No. 49 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 the Separate Account No. 49.
Each subaccount (variable investment option) within the Separate Accounts
invests solely in class IB 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, either Separate Account, 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 each Separate Account 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 each Separate Account
or a variable investment option directly);
(5) to deregister the Separate Accounts under the Investment Company Act of
1940;
(6) to restrict or eliminate any voting rights as to the Separate Accounts; 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
The Trusts 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.
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 and other aspects
of its operations, appears in the prospectuses for each Trust, which are
attached at the end of this Prospectus, or in the 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.
FMO rates are determined daily. The rates in the table below are illustrative
only and will most likely differ from the rates applicable at time of purchase.
Current FMO rates can be obtained from your financial professional.
For example, the rates to maturity for new allocations as of February 13, 2004
and the related price per $100 of maturity value were as shown below:
- ------------------------------------------------------------
Fixed Maturity
Options with
February 13th Rate to Maturity Price
Maturity Date of as of Per $100 of
Maturity Year February 13, 2004 Maturity Value
- ------------------------------------------------------------
2005 3.00%* $ 97.08
2006 3.00%* $ 94.25
2007 3.00%* $ 91.51
2008 3.00%* $ 88.84
2009 3.00%* $ 86.25
2010 3.00%* $ 83.73
2011 3.00%* $ 81.30
2012 3.30% $ 77.11
2013 3.53% $ 73.16
2014 3.73% $ 69.31
- ------------------------------------------------------------
* Since these rates to maturity are 3%, no amounts could have been allocated to
these options.
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 any 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.
More information 59
(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 for your FMO based on the rate
for a new FMO issued on the same date and having the same maturity
date as your FMO; if the same maturity date is not available for
new FMOs, we determine a rate that is between the rates for new FMO
maturities that immediately precede and immediately follow your
FMO's maturity date.
(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.
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) 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 by using a widely published index. We reserve the right to add up to
0.25% 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 expect the rates to maturity for the fixed maturity options 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 and the account for special dollar cost averaging, 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
WIRE TRANSMITTALS AND ELECTRONIC APPLICATIONS
We accept initial and subsequent contributions sent by wire to our processing
office by agreement with certain broker-dealers. Such transmittals must be
accompanied by the information we require to allocate your contribution. Wire
orders not accompanied by complete information may be retained as described
under "How you can make your contributions" in "Contract features and benefits"
earlier in this Prospectus.
Even if we accept the wire order and essential information, a contract
generally will not be issued until we receive and accept a properly completed
application. In certain cases we may issue a contract based on information
provided through certain broker-dealers with which we
60 More information
have established electronic facilities. In any such cases, you must sign our
Acknowledgment of Receipt form.
Where we require a signed application, the above procedures do not apply and no
financial transactions will be permitted until we receive the signed
application and have issued the contract. Where we issue a contract based on
information provided through electronic facilities, we require an
Acknowledgment of Receipt form, and financial transactions are only permitted
if you request them in writing, sign the request and have it signature
guaranteed, until we receive the signed Acknowledgment of Receipt form. After
your contract has been issued, additional contributions may be transmitted by
wire.
In general, the transaction date for electronic transmissions is the date on
which we receive at our regular processing office all required information and
the funds due for your contribution. We may also establish same-day electronic
processing facilities with a broker-dealer that has undertaken to pay
contribution amounts on behalf of its customers. In such cases, the transaction
date for properly processed orders is the business day on which the
broker-dealer inputs all required information into its electronic processing
system. You can contact us to find out more about such arrangements.
After your contract has been issued, additional contributions may be
transmitted by wire.
AUTOMATIC INVESTMENT PROGRAM -- FOR NQ, FLEXIBLE PREMIUM IRA AND FLEXIBLE
PREMIUM ROTH IRA CONTRACTS ONLY
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, Flexible Premium IRA or Flexible Premium Roth IRA contract on a
monthly or quarterly basis. AIP is not available for Rollover IRA, Roth
Conversion IRA, QP or Rollover TSA contracts.
For NQ contracts, the minimum amounts we will deduct are $100 monthly and $300
quarterly. Under Flexible Premium IRA and Flexible Premium Roth IRA contracts,
the minimum amount is $50. AIP additional contributions may be allocated to any
of the variable investment options and available fixed maturity options, but
not the account for special dollar cost averaging. 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.
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. on a business day, we will use the next business day.
o A loan request under your Rollover TSA contract will be processed on the
first business day of the month following the date on which the properly
completed loan request form is received.
o If your transaction is set to occur on the same day of the month as the
contract date and that date is the 29th, 30th or 31st of the month, then
the transaction will occur on the 1st day of the next month.
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 If we have entered into an agreement with your broker-dealer for automated
processing of contributions upon receipt of customer order, your
contribution will be considered received at the time your broker-dealer
receives your contribution and all information needed to process your
application, along with any required documents, and transmits your order
to us in accordance with our processing procedures. Such arrangements may
apply to initial contributions, subsequent contributions, or both, and may
be commenced or terminated at any time without prior notice. If required
by law, the "closing time" for such orders will be earlier than 4 p.m.,
Eastern Time.
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 the guaranteed interest option will receive the
crediting rate in effect on that business day for the specified time
period.
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
(unless a rate lock-in is applicable).
o Initial contributions allocated to the account for special dollar cost
averaging receive the interest rate in effect on that business day. At
certain times, we may offer the opportunity to lock in the interest rate
for an initial contribution to be received under Section 1035 exchanges
and trustee to trustee transfers. Your financial professional can provide
information or you can call our processing office.
o Transfers to or from variable investment options will be made at the value
next determined after the close of the business day.
More information 61
o Transfers to the guaranteed interest option will receive the crediting rate
in effect on that business day for the specified time period.
o For the interest sweep option, 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;
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. Its 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 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 NO. 49 VOTING RIGHTS
If actions relating to the Separate Account 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 No. 49, our ability to meet our obligations under the
contracts, or the distribution of the contracts.
ABOUT OUR INDEPENDENT AUDITORS
The consolidated financial statements of Equitable Life at December 31, 2003
and 2002, and for the three years ended December 31, 2003 incorporated in this
Prospectus by reference to the 2003 Annual Report on Form 10-K are incorporated
in reliance on the report of PricewaterhouseCoopers LLP, independent auditors,
given on the authority of said firm as experts in auditing and accounting.
FINANCIAL STATEMENTS
The financial statements of Separate Account No. 49, 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 1-800-789-7771.
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
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 an IRA, QP or Rollover TSA contract
except by surrender to us. If your individual retirement annuity contract is
held in your custodial individual retirement account, you may only assign or
transfer ownership of such an IRA contract to yourself. Loans are not available
and you cannot assign IRA and QP contracts as security for a loan or other
obligation. If the employer that provided the funds does not restrict them,
loans are available under a Rollover TSA contract.
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 IRA, QP or Rollover TSA
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.
62 More information
DISTRIBUTION OF THE CONTRACTS
The contracts are distributed by both AXA Advisors, LLC ("AXA Advisors") and
AXA Distributors, LLC ("AXA Distributors"). Both AXA Advisors and AXA
Distributors serve as principal underwriters of Separate Account No. 49. The
offering of the contracts is intended to be continuous.
AXA Advisors (the successor to EQ Financial Consultants, Inc.), an affiliate of
Equitable Life, and AXA Distributors, an indirect wholly owned subsidiary of
Equitable Life, are registered with the SEC as broker dealers and are members
of the National Association of Securities Dealers, Inc. Their principal
business address is 1290 Avenue of the Americas, New York, NY 10104. Both
broker dealers act as distributors for other Equitable Life annuity products.
AXA Distributors is a successor by merger to all of the functions, rights and
obligations of Equitable Distributors, Inc. ("EDI"). Like AXA Distributors, EDI
was owned by Equitable Holdings, LLC.
The contracts are sold by financial professionals of AXA Advisors and its
affiliates and by financial professionals of AXA Distributors, as well as by
affiliated and unaffiliated broker dealers who have entered into selling
agreements with AXA Distributors.
We pay broker-dealer sales compensation that will generally not exceed 6.5% of
the total contributions made under the contracts. Broker-dealers receiving
sales compensation will generally pay a portion of it to their financial
representatives as commissions related to the sales of the contracts. AXA
Distributors may also receive compensation and reimbursement for its marketing
services under the terms of its distribution agreement with Equitable Life, as
well as payments from portfolio advisers for sales meetings and/or seminar
sponsorships.
Equitable and/or AXA Distributors and/or AXA Advisors may use their respective
past profits or other resources to pay brokers and other financial
intermediaries for certain expenses they incur in providing services intended
to promote the sales of our products and/or shares in the underlying Trusts.
These services may include sales personnel training, prospectus review,
marketing and related services as well as support services that benefit
contract owners.
Similarly, in an effort to promote the sale of our products, AXA Advisors may
provide its financial professionals and managerial personnel with a higher
percentage of sales commissions and/or more compensation for the sale of an
Equitable variable product than it would for the sale of another product. Such
practice is known as providing differential compensation. Other forms of
compensation financial professionals may receive include health and retirement
benefits, credits towards stock options awards and rewards for sales incentive
campaigns. In addition, managerial personnel may receive expense
reimbursements, marketing allowances and so called "overrides." In part for tax
reasons, AXA Advisors financial professionals and managerial personnel qualify
for health and retirement benefits based on their sales of our variable
products.
These payments and differential compensation (together, "payments") can vary in
amount based on the applicable product and/or entity or individual involved. As
with any incentive, such payments may cause the recipient to show preference in
recommending the purchase or sale of our products. However, under applicable
rules of the National Association of Securities Dealers, Inc., AXA Advisors
financial professionals may only recommend to you products that they reasonably
believe are suitable for you based on facts that you have disclosed as to your
other security holdings, financial situation and needs. In making any
recommendation, financial professionals may nonetheless face conflicts of
interest because of the differences in compensation from one product category
to another, and because of differences in compensation between products in the
same category. Although Equitable takes all of its costs into account in
establishing the level of fees and expenses in our products, payments made will
not result in any separate charge to you under your contract.
More information 63
9. Incorporation of certain documents by reference
- --------------------------------------------------------------------------------
Equitable Life's Annual Report on Form 10-K for the year ended December 31,
2003 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).
64 Incorporation of certain documents by reference
Appendix I: Condensed financial information
- --------------------------------------------------------------------------------
The unit values and number of units outstanding shown below are for contracts
offered under Separate Account 49 with the same daily asset charges of 1.20%.
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, 2003
- ------------------------------------------------------------------------------------------------------------------------------------
For the years ending December 31,
- ------------------------------------------------------------------------------------------------------------------------------------
2003 2002
- ------------------------------------------------------------------------------------------------------------------------------------
AXA Moderate Allocation
- ------------------------------------------------------------------------------------------------------------------------------------
Unit value $ 42.39 $ 36.01
Number of units outstanding (000's) 4,208 1,221
- ------------------------------------------------------------------------------------------------------------------------------------
AXA Premier VIP Aggressive Equity
- ------------------------------------------------------------------------------------------------------------------------------------
Unit value $ 50.07 $ 36.85
Number of units outstanding (000's) 265 161
- ------------------------------------------------------------------------------------------------------------------------------------
AXA Premier VIP Core Bond
- ------------------------------------------------------------------------------------------------------------------------------------
Unit value $ 10.96 $ 10.69
Number of units outstanding (000's) 12,153 4,285
- ------------------------------------------------------------------------------------------------------------------------------------
AXA Premier VIP Health Care
- ------------------------------------------------------------------------------------------------------------------------------------
Unit value $ 10.01 $ 7.91
Number of units outstanding (000's) 3,394 929
- ------------------------------------------------------------------------------------------------------------------------------------
AXA Premier VIP High Yield
- ------------------------------------------------------------------------------------------------------------------------------------
Unit value $ 28.20 $ 23.29
Number of units outstanding (000's) 4,511 903
- ------------------------------------------------------------------------------------------------------------------------------------
AXA Premier VIP International Equity
- ------------------------------------------------------------------------------------------------------------------------------------
Unit value $ 10.38 $ 7.82
Number of units outstanding (000's) 3,008 923
- ------------------------------------------------------------------------------------------------------------------------------------
AXA Premier VIP Large Cap Core Equity
- ------------------------------------------------------------------------------------------------------------------------------------
Unit value $ 9.69 $ 7.65
Number of units outstanding (000's) 2,952 1,004
- ------------------------------------------------------------------------------------------------------------------------------------
AXA Premier VIP Large Cap Growth
- ------------------------------------------------------------------------------------------------------------------------------------
Unit value $ 8.77 $ 6.80
Number of units outstanding (000's) 5,953 2,130
- ------------------------------------------------------------------------------------------------------------------------------------
AXA Premier VIP Large Cap Value
- ------------------------------------------------------------------------------------------------------------------------------------
Unit value $ 10.26 $ 7.92
Number of units outstanding (000's) 5,210 1,722
AXA Premier VIP Small/Mid Cap Growth
- ------------------------------------------------------------------------------------------------------------------------------------
Unit value $ 8.60 $ 6.21
Number of units outstanding (000's) 7,657 2,602
- ------------------------------------------------------------------------------------------------------------------------------------
AXA Premier VIP Small/Mid Cap Value
- ------------------------------------------------------------------------------------------------------------------------------------
Unit value $ 10.25 $ 7.38
Number of units outstanding (000's) 5,443 1,889
- ------------------------------------------------------------------------------------------------------------------------------------
AXA Premier VIP Technology
- ------------------------------------------------------------------------------------------------------------------------------------
Unit value $ 8.83 $ 5.67
Number of units outstanding (000's) 1,530 306
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/Alliance Common Stock
- ------------------------------------------------------------------------------------------------------------------------------------
Unit value $ 220.33 $ 149.11
Number of units outstanding (000's) 548 222
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
For the years ending December 31,
- ------------------------------------------------------------------------------------------------------------------------------------
2001 2000 1999
- ------------------------------------------------------------------------------------------------------------------------------------
AXA Moderate Allocation
- ------------------------------------------------------------------------------------------------------------------------------------
Unit value -- -- --
Number of units outstanding (000's) -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
AXA Premier VIP Aggressive Equity
- ------------------------------------------------------------------------------------------------------------------------------------
Unit value $ 52.44 $ 70.94 $ 82.86
Number of units outstanding (000's) 153 185 213
- ------------------------------------------------------------------------------------------------------------------------------------
AXA Premier VIP Core Bond
- ------------------------------------------------------------------------------------------------------------------------------------
Unit value -- -- --
Number of units outstanding (000's) -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
AXA Premier VIP Health Care
- ------------------------------------------------------------------------------------------------------------------------------------
Unit value -- -- --
Number of units outstanding (000's) -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
AXA Premier VIP High Yield
- ------------------------------------------------------------------------------------------------------------------------------------
Unit value $ 24.29 $ 24.42 $ 27.13
Number of units outstanding (000's) 221 260 329
- ------------------------------------------------------------------------------------------------------------------------------------
AXA Premier VIP International Equity
- ------------------------------------------------------------------------------------------------------------------------------------
Unit value -- -- --
Number of units outstanding (000's) -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
AXA Premier VIP Large Cap Core Equity
- ------------------------------------------------------------------------------------------------------------------------------------
Unit value -- -- --
Number of units outstanding (000's) -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
AXA Premier VIP Large Cap Growth
- ------------------------------------------------------------------------------------------------------------------------------------
Unit value -- -- --
Number of units outstanding (000's) -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
AXA Premier VIP Large Cap Value
- ------------------------------------------------------------------------------------------------------------------------------------
Unit value -- -- --
Number of units outstanding (000's) -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
AXA Premier VIP Small/Mid Cap Growth
Unit value -- -- --
Number of units outstanding (000's) -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
AXA Premier VIP Small/Mid Cap Value
- ------------------------------------------------------------------------------------------------------------------------------------
Unit value -- -- --
Number of units outstanding (000's) -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
AXA Premier VIP Technology
- ------------------------------------------------------------------------------------------------------------------------------------
Unit value -- -- --
Number of units outstanding (000's) -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/Alliance Common Stock
- ------------------------------------------------------------------------------------------------------------------------------------
Unit value $ 226.39 $ 256.74 $ 303.01
Number of units outstanding (000's) 154 188 205
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
For the years ending December 31,
- ------------------------------------------------------------------------------------------------------------------------------------
1998 1997 1996
- ------------------------------------------------------------------------------------------------------------------------------------
AXA Moderate Allocation
- ------------------------------------------------------------------------------------------------------------------------------------
Unit value -- -- --
Number of units outstanding (000's) -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
AXA Premier VIP Aggressive Equity
- ------------------------------------------------------------------------------------------------------------------------------------
Unit value $ 70.74 $ 71.57 $ 65.53
Number of units outstanding (000's) 266 279 9
- ------------------------------------------------------------------------------------------------------------------------------------
AXA Premier VIP Core Bond
- ------------------------------------------------------------------------------------------------------------------------------------
Unit value -- -- --
Number of units outstanding (000's) -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
AXA Premier VIP Health Care
- ------------------------------------------------------------------------------------------------------------------------------------
Unit value -- -- --
Number of units outstanding (000's) -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
AXA Premier VIP High Yield
- ------------------------------------------------------------------------------------------------------------------------------------
Unit value $ 28.48 $ 30.46 $ 26.09
Number of units outstanding (000's) 422 439 24
- ------------------------------------------------------------------------------------------------------------------------------------
AXA Premier VIP International Equity
- ------------------------------------------------------------------------------------------------------------------------------------
Unit value -- -- --
Number of units outstanding (000's) -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
AXA Premier VIP Large Cap Core Equity
- ------------------------------------------------------------------------------------------------------------------------------------
Unit value -- -- --
Number of units outstanding (000's) -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
AXA Premier VIP Large Cap Growth
Unit value -- -- --
Number of units outstanding (000's) -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
AXA Premier VIP Large Cap Value
- ------------------------------------------------------------------------------------------------------------------------------------
Unit value -- -- --
Number of units outstanding (000's) -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
AXA Premier VIP Small/Mid Cap Growth
- ------------------------------------------------------------------------------------------------------------------------------------
Unit value -- -- --
Number of units outstanding (000's) -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
AXA Premier VIP Small/Mid Cap Value
- ------------------------------------------------------------------------------------------------------------------------------------
Unit value -- -- --
Number of units outstanding (000's) -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
AXA Premier VIP Technology
- ------------------------------------------------------------------------------------------------------------------------------------
Unit value -- -- --
Number of units outstanding (000's) -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/Alliance Common Stock
- ------------------------------------------------------------------------------------------------------------------------------------
Unit value $ 245.58 $ 192.60 $ 151.23
Number of units outstanding (000's) 230 240 8
- ------------------------------------------------------------------------------------------------------------------------------------
Appendix I: Condensed financial information A-1
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, 2003 (CONTINUED)
- ------------------------------------------------------------------------------------------------------------------------------------
For the years ending December 31,
- ------------------------------------------------------------------------------------------------------------------------------------
2003 2002
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/Alliance Growth and Income
- ------------------------------------------------------------------------------------------------------------------------------------
Unit value $ 25.91 $ 20.11
Number of units outstanding (000's) 5,046 1,615
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/Alliance Intermediate Government
Securities
- ------------------------------------------------------------------------------------------------------------------------------------
Unit value $ 18.91 $ 18.73
Number of units outstanding (000's) 4,619 1,850
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/Alliance International
- ------------------------------------------------------------------------------------------------------------------------------------
Unit value $ 11.55 $ 8.65
Number of units outstanding (000's) 5,125 1,285
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/Alliance Premier Growth
- ------------------------------------------------------------------------------------------------------------------------------------
Unit value $ 5.92 $ 4.86
Number of units outstanding (000's) 5,986 2,292
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/Alliance Quality Bond
- ------------------------------------------------------------------------------------------------------------------------------------
Unit value $ 15.77 $ 15.42
Number of units outstanding (000's) 4,326 1,432
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/Alliance Small Cap Growth
- ------------------------------------------------------------------------------------------------------------------------------------
Unit value $ 13.80 $ 9.91
Number of units outstanding (000's) 4,091 1,279
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/Bernstein Diversified Value
- ------------------------------------------------------------------------------------------------------------------------------------
Unit value $ 12.99 $ 10.22
Number of units outstanding (000's) 14,531 4,578
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/Calvert Socially Responsible
- ------------------------------------------------------------------------------------------------------------------------------------
Unit value $ 8.00 $ 6.33
Number of units outstanding (000's) 744 182
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/Capital Guardian International
- ------------------------------------------------------------------------------------------------------------------------------------
Unit value $ 9.60 $ 7.33
Number of units outstanding (000's) 6,516 1,628
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/Capital Guardian Research
- ------------------------------------------------------------------------------------------------------------------------------------
Unit value $ 10.41 $ 8.01
Number of units outstanding (000's) 7,741 2,252
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/Capital Guardian U. S. Equity
- ------------------------------------------------------------------------------------------------------------------------------------
Unit value $ 10.36 $ 7.69
Number of units outstanding (000's) 13,433 2,981
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/Emerging Markets Equity
- ------------------------------------------------------------------------------------------------------------------------------------
Unit value $ 8.81 $ 5.72
Number of units outstanding (000's) 2,700 737
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/Equity 500 Index
- ------------------------------------------------------------------------------------------------------------------------------------
Unit value $ 23.92 $ 18.94
Number of units outstanding (000's) 8,439 2,393
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/Evergreen Omega
- ------------------------------------------------------------------------------------------------------------------------------------
Unit value $ 7.95 $ 5.82
Number of units outstanding (000's) 2,600 551
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/FI /Mid Cap
- ------------------------------------------------------------------------------------------------------------------------------------
Unit value $ 9.78 $ 6.89
Number of units outstanding (000's) 12,491 2,799
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
For the years ending December 31,
- ------------------------------------------------------------------------------------------------------------------------------------
2001 2000 1999
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/Alliance Growth and Income
- ------------------------------------------------------------------------------------------------------------------------------------
Unit value -- -- --
Number of units outstanding (000's) -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/Alliance Intermediate Government
Securities
- ------------------------------------------------------------------------------------------------------------------------------------
Unit value -- -- --
Number of units outstanding (000's) -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/Alliance International
- ------------------------------------------------------------------------------------------------------------------------------------
Unit value -- -- --
Number of units outstanding (000's) -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/Alliance Premier Growth
- ------------------------------------------------------------------------------------------------------------------------------------
Unit value $ 7.15 $ 9.52 $ 11.80
Number of units outstanding (000's) 89 114 79
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/Alliance Quality Bond
- ------------------------------------------------------------------------------------------------------------------------------------
Unit value -- -- --
Number of units outstanding (000's) -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/Alliance Small Cap Growth
- ------------------------------------------------------------------------------------------------------------------------------------
Unit value $ 14.38 $ 16.78 $ 14.94
Number of units outstanding (000's) 105 191 50
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/Bernstein Diversified Value
- ------------------------------------------------------------------------------------------------------------------------------------
Unit value $ 11.97 $ 11.75 $ 12.13
Number of units outstanding (000's) 114 54 46
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/Calvert Socially Responsible
Unit value $ 8.70 -- --
Number of units outstanding (000's) -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/Capital Guardian International
- ------------------------------------------------------------------------------------------------------------------------------------
Unit value $ 8.73 $ 11.17 $ 13.97
Number of units outstanding (000's) 26 23 15
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/Capital Guardian Research
- ------------------------------------------------------------------------------------------------------------------------------------
Unit value $ 10.76 $ 11.12 $ 10.62
Number of units outstanding (000's) 17 10 3
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/Capital Guardian U. S. Equity
- ------------------------------------------------------------------------------------------------------------------------------------
Unit value $ 10.20 $ 10.53 $ 10.29
Number of units outstanding (000's) 59 8 7
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/Emerging Markets Equity
- ------------------------------------------------------------------------------------------------------------------------------------
Unit value $ 6.15 $ 6.56 $ 11.08
Number of units outstanding (000's) 43 55 52
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/Equity 500 Index
- ------------------------------------------------------------------------------------------------------------------------------------
Unit value $ 24.71 $ 28.47 --
Number of units outstanding (000's) 71 78 --
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/Evergreen Omega
- ------------------------------------------------------------------------------------------------------------------------------------
Unit value -- -- --
Number of units outstanding (000's) -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/FI /Mid Cap
- ------------------------------------------------------------------------------------------------------------------------------------
Unit value $ 8.56 $ 10.00 --
Number of units outstanding (000's) 19 7 --
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
For the years ending December 31,
- ------------------------------------------------------------------------------------------------------------------------------------
1998 1997 1996
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/Alliance Growth and Income
- ------------------------------------------------------------------------------------------------------------------------------------
Unit value -- -- --
Number of units outstanding (000's) -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/Alliance Intermediate Government
Securities
- ------------------------------------------------------------------------------------------------------------------------------------
Unit value -- -- --
Number of units outstanding (000's) -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/Alliance International
- ------------------------------------------------------------------------------------------------------------------------------------
Unit value -- -- --
Number of units outstanding (000's) -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
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 $ 11.85 $ 12.55 --
Number of units outstanding (000's) 102 89 --
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/Bernstein Diversified Value
- ------------------------------------------------------------------------------------------------------------------------------------
Unit value $ 11.86 -- --
Number of units outstanding (000's) 22 -- --
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/Calvert Socially Responsible
- ------------------------------------------------------------------------------------------------------------------------------------
Unit value -- -- --
Number of units outstanding (000's) -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/Capital Guardian International
- ------------------------------------------------------------------------------------------------------------------------------------
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 $ 5.73 -- --
Number of units outstanding (000's) 16 -- --
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/Equity 500 Index
- ------------------------------------------------------------------------------------------------------------------------------------
Unit value -- -- --
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) -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
A-2 Appendix I: Condensed financial information
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, 2003 (CONTINUED)
- ------------------------------------------------------------------------------------------------------------------------------------
For the years ending December 31,
- ------------------------------------------------------------------------------------------------------------------------------------
2003 2002
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/FI Small/Mid Cap Value
- ------------------------------------------------------------------------------------------------------------------------------------
Unit value $ 12.51 $ 9.51
Number of units outstanding (000's) 8,508 3,161
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/J.P. Morgan Core Bond
- ------------------------------------------------------------------------------------------------------------------------------------
Unit value $ 13.60 $ 13.32
Number of units outstanding (000's) 11,974 3,674
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/Janus Large Cap Growth
- ------------------------------------------------------------------------------------------------------------------------------------
Unit value $ 5.47 $ 4.40
Number of units outstanding (000's) 5,658 2,123
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/Lazard Small Cap Value
- ------------------------------------------------------------------------------------------------------------------------------------
Unit value $ 14.55 $ 10.70
Number of units outstanding (000's) 8,124 2,322
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/Marsico Focus
- ------------------------------------------------------------------------------------------------------------------------------------
Unit value $ 12.84 $ 9.91
Number of units outstanding (000's) 13,403 2,875
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/Mercury Basic Value Equity
- ------------------------------------------------------------------------------------------------------------------------------------
Unit value $ 18.49 $ 14.26
Number of units outstanding (000's) 5,670 1,591
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/Mercury International Value
- ------------------------------------------------------------------------------------------------------------------------------------
Unit value $ 14.22 $ 11.24
Number of units outstanding (000's) 4,396 1,445
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/MFS Emerging Growth Companies
- ------------------------------------------------------------------------------------------------------------------------------------
Unit value $ 12.00 $ 9.39
Number of units outstanding (000's) 1,506 496
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/MFS Investors Trust
- ------------------------------------------------------------------------------------------------------------------------------------
Unit value $ 8.23 $ 6.83
Number of units outstanding (000's) 4,026 993
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/Money Market
- ------------------------------------------------------------------------------------------------------------------------------------
Unit value $ 29.33 $ 29.52
Number of units outstanding (000's) 1,972 1,554
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/Putnam Growth & Income Value
- ------------------------------------------------------------------------------------------------------------------------------------
Unit value $ 12.19 $ 9.73
Number of units outstanding (000's) 3,680 1,342
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/Putnam Voyager
- ------------------------------------------------------------------------------------------------------------------------------------
Unit value $ 11.58 $ 9.46
Number of units outstanding (000's) 2,153 710
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/Small Company Index
- ------------------------------------------------------------------------------------------------------------------------------------
Unit value $ 12.48 $ 8.66
Number of units outstanding (000's) 3,847 1,053
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/Technology
- ------------------------------------------------------------------------------------------------------------------------------------
Unit value $ 4.10 $ 2.89
Number of units outstanding (000's) 3,485 925
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
For the years ending December 31,
- ------------------------------------------------------------------------------------------------------------------------------------
2001 2000 1999
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/FI Small/Mid Cap Value
- ------------------------------------------------------------------------------------------------------------------------------------
Unit value $ 11.28 $ 10.98 --
Number of units outstanding (000's) 37 9 --
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/J.P. Morgan Core Bond
- ------------------------------------------------------------------------------------------------------------------------------------
Unit value $ 12.30 $ 11.54 $ 10.47
Number of units outstanding (000's) 280 141 139
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/Janus Large Cap Growth
- ------------------------------------------------------------------------------------------------------------------------------------
Unit value $ 6.39 $ 8.40 --
Number of units outstanding (000's) 20 29 --
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/Lazard Small Cap Value
- ------------------------------------------------------------------------------------------------------------------------------------
Unit value $ 12.57 $ 10.81 $ 9.23
Number of units outstanding (000's) 111 41 20
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/Marsico Focus
- ------------------------------------------------------------------------------------------------------------------------------------
Unit value $ 11.35 -- --
Number of units outstanding (000's) 2 -- --
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/Mercury Basic Value Equity
- ------------------------------------------------------------------------------------------------------------------------------------
Unit value -- -- --
Number of units outstanding (000's) -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/Mercury International Value
- ------------------------------------------------------------------------------------------------------------------------------------
Unit value $ 13.65 $ 17.60 $ 20.32
Number of units outstanding (000's) 154 182 199
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/MFS Emerging Growth Companies
- ------------------------------------------------------------------------------------------------------------------------------------
Unit value $ 14.47 $ 22.21 $ 27.70
Number of units outstanding (000's) 147 214 227
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/MFS Investors Trust
- ------------------------------------------------------------------------------------------------------------------------------------
Unit value $ 8.75 $ 10.54 $ 10.74
Number of units outstanding (000's) 77 42 31
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/Money Market
- ------------------------------------------------------------------------------------------------------------------------------------
Unit value $ 29.51 $ 28.84 $ 27.54
Number of units outstanding (000's) 256 266 360
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/Putnam Growth & Income Value
- ------------------------------------------------------------------------------------------------------------------------------------
Unit value $ 12.16 $ 13.21 $ 12.52
Number of units outstanding (000's) 324 341 423
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/Putnam Voyager
- ------------------------------------------------------------------------------------------------------------------------------------
Unit value $ 13.00 $ 17.41 $ 21.43
Number of units outstanding (000's) 193 235 245
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/Small Company Index
- ------------------------------------------------------------------------------------------------------------------------------------
Unit value $ 11.07 $ 10.99 $ 11.51
Number of units outstanding (000's) 23 18 18
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/Technology
- ------------------------------------------------------------------------------------------------------------------------------------
Unit value $ 4.94 $ 6.62 --
Number of units outstanding (000's) 51 66 --
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
For the years ending December 31,
- ------------------------------------------------------------------------------------------------------------------------------------
1998 1997 1996
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/FI Small/Mid Cap Value
- ------------------------------------------------------------------------------------------------------------------------------------
Unit value -- -- --
Number of units outstanding (000's) -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/J.P. Morgan Core Bond
- ------------------------------------------------------------------------------------------------------------------------------------
Unit value $ 10.77 -- --
Number of units outstanding (000's) 98 -- --
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/Janus Large Cap Growth
- ------------------------------------------------------------------------------------------------------------------------------------
Unit value -- -- --
Number of units outstanding (000's) -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/Lazard Small Cap Value
- ------------------------------------------------------------------------------------------------------------------------------------
Unit value $ 9.18 -- --
Number of units outstanding (000's) 26 -- --
- ------------------------------------------------------------------------------------------------------------------------------------
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/Mercury International Value
- ------------------------------------------------------------------------------------------------------------------------------------
Unit value $ 12.83 $ 10.87 --
Number of units outstanding (000's) 190 187 --
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/MFS Emerging Growth Companies
- ------------------------------------------------------------------------------------------------------------------------------------
Unit value $ 16.14 $ 12.14 --
Number of units outstanding (000's) 176 149 --
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/MFS Investors Trust
- ------------------------------------------------------------------------------------------------------------------------------------
Unit value -- -- --
Number of units outstanding (000's) -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/Money Market
- ------------------------------------------------------------------------------------------------------------------------------------
Unit value $ 26.62 $ 25.64 $ 24.68
Number of units outstanding (000's) 329 359 127
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/Putnam Growth & Income Value
- ------------------------------------------------------------------------------------------------------------------------------------
Unit value $ 12.85 $ 11.53 --
Number of units outstanding (000's) 506 383 --
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/Putnam Voyager
- ------------------------------------------------------------------------------------------------------------------------------------
Unit value $ 16.65 $ 12.37 --
Number of units outstanding (000's) 160 124 --
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/Small Company Index
- ------------------------------------------------------------------------------------------------------------------------------------
Unit value $ 9.65 -- --
Number of units outstanding (000's) 18 -- --
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/Technology
- ------------------------------------------------------------------------------------------------------------------------------------
Unit value -- -- --
Number of units outstanding (000's) -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Appendix I: Condensed financial information A-3
Appendix II: Purchase considerations for QP contracts
- --------------------------------------------------------------------------------
Trustees who are considering the purchase of an Equitable Accumulator(R) QP
contract should discuss with their tax advisers whether this is an appropriate
investment vehicle for the employer's plan. Trustees should consider whether
the plan provisions permit the investment of plan assets in the QP contract,
the distribution of such an annuity, the purchase of the guaranteed minimum
income benefit, and the payment of death benefits in accordance with the
requirements of the federal income tax rules. The QP contract and this
Prospectus should be reviewed in full, and the following factors, among others,
should be noted. Assuming continued plan qualification and operation, earnings
on qualified plan assets will accumulate value on a tax-deferred basis even if
the plan is not funded by the Equitable Accumulator(R) QP contract or another
annuity. Therefore, you should purchase an Equitable Accumulator(R) QP contract
to fund a plan for the contract's features and benefits other than tax
deferral, after considering the relative costs and benefits of annuity
contracts and other types of arrangements and funding vehicles. This QP
contract accepts transfer contributions only and not regular, ongoing payroll
contributions. For 401(k) plans under defined contribution plans, no employee
after-tax contributions are accepted.
We will not accept defined benefit plans. For defined contribution plans, we
will only accept transfers from another defined contribution plan or a change
of investment vehicles in the plan. Only one additional transfer contribution
may be made per contract year. If overfunding of a plan occurs or amounts
attributable to an excess contribution must be withdrawn, withdrawals from the
QP contract may be required. A withdrawal charge and/or market value adjustment
may apply.
Equitable Life will not perform or provide any plan recordkeeping services with
respect to the QP contracts. The plan's administrator will be solely
responsible for performing or providing for all such services. There is no loan
feature offered under the QP contracts, so if the plan provides for loans and a
participant/employee takes a loan from the plan, other plan assets must be used
as the source of the loan and any loan repayments must be credited to other
investment vehicles and/or accounts available under the plan.
Given that required minimum distributions must generally commence from the plan
for annuitants after age 70-1/2, trustees should consider that:
o the QP contract may not be an appropriate purchase for annuitants approaching
or over age 70-1/2;
o although certain provisions of the Temporary Regulations on required minimum
distributions which would have required that the actuarial value of
additional annuity contract benefits be added to the dollar amount credited
for purposes of calculating required minimum distributions have currently
been suspended, these or similar provisions may apply in future years, and
could increase the amounts required to be distributed from the contract; and
o the guaranteed minimum income benefit under the Living Benefit may not be an
appropriate feature for annuitants who are older than age 60-1/2 when the
contract is issued.
Finally, because the method of purchasing the QP contract, including the large
initial contribution, and the features of the QP contract may appeal more to
plan participants/employees who are older and tend to be highly paid, and
because certain features of the QP contract are available only to plan
participants/employees who meet certain minimum and/or maximum age
requirements, plan trustees should discuss with their advisers whether the
purchase of the QP contract would cause the plan to engage in prohibited
discrimination in contributions, benefits or otherwise.
B-1 Appendix II: Purchase considerations for QP contracts
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 was allocated
on February 13, 2004 to a fixed maturity option with a maturity date of
February 13, 2013 (nine years later) at a hypothetical rate to maturity of
7.00%, resulting in a maturity value of $183,914 on the maturity date. We
further assume that a withdrawal of $50,000 is made four years later on
February 13, 2009.
- -------------------------------------------------------------------------------------
Hypothetical Assumed
rate to maturity on
February 13, 2009
- -------------------------------------------------------------------------------------
5.00% 9.00%
- -------------------------------------------------------------------------------------
As of February 13, 2009 (before withdrawal)
- -------------------------------------------------------------------------------------
(1) Market adjusted amount $144,082 $ 119,503
- -------------------------------------------------------------------------------------
(2) Fixed maturity amount $131,104 $ 131,104
- -------------------------------------------------------------------------------------
(3) Market value adjustment:
(1) - (2) $ 12,978 $ (11,601)
- -------------------------------------------------------------------------------------
On February 13, 2009 (after withdrawal)
- -------------------------------------------------------------------------------------
(4) Portion of market value adjustment associated with withdrawal:
(3) x [$50,000/(1)] $ 4,504 $ (4,854)
- -------------------------------------------------------------------------------------
(5) Reduction in fixed maturity amount: [$50,000 - (4)] $ 45,496 $ 54,854
- -------------------------------------------------------------------------------------
(6) Fixed maturity amount: (2) - (5) $ 85,608 $ 76,250
- -------------------------------------------------------------------------------------
(7) Maturity value $120,091 $ 106,965
- -------------------------------------------------------------------------------------
(8) Market adjusted amount of (7) $ 94,082 $ 69,503
- -------------------------------------------------------------------------------------
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 portion of 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 portion of a
positive market value adjustment is realized. The market value adjustment is
computed differently if you withdraw amounts on a date other than the
anniversary of the establishment of the fixed maturity option.
Appendix III: Market value adjustment example C-1
Appendix IV: Enhanced death benefit example
- --------------------------------------------------------------------------------
The death benefit under the contracts is equal to the account value or, if
greater, the enhanced death benefit, if elected.
The following illustrates the enhanced death benefit calculation. Assuming
$100,000 is allocated to the variable investment options (with no allocation to
the EQ/Alliance Intermediate Government Securities, EQ/Money Market, the
guaranteed interest option or the fixed maturity options), no additional
contributions, no transfers, no withdrawals and no loans under a Rollover TSA
contract, the enhanced death benefit for an annuitant age 45 would be
calculated as follows:
- -------------------------------------------------------------------------------------
End of 6% roll up to age 85 Annual ratchet to age 85
contract enhanced enhanced
year Account value death benefit(1) death benefit
- -------------------------------------------------------------------------------------
1 $105,000 $ 106,000(1) $ 105,000(3)
- -------------------------------------------------------------------------------------
2 $115,500 $ 112,360(2) $ 115,500(3)
- -------------------------------------------------------------------------------------
3 $129,360 $ 119,102(2) $ 129,360(3)
- -------------------------------------------------------------------------------------
4 $103,488 $ 126,248(1) $ 129,360(4)
- -------------------------------------------------------------------------------------
5 $113,837 $ 133,823(1) $ 129,360(4)
- -------------------------------------------------------------------------------------
6 $127,497 $ 141,852(1) $ 129,360(4)
- -------------------------------------------------------------------------------------
7 $127,497 $ 150,363(1) $ 129,360(4)
- -------------------------------------------------------------------------------------
The account values for contract years 1 through 7 are based on hypothetical
rates of return of 5.00%, 10.00%, 12.00%, (20.00)%, 10.00%, 12.00% and 0.00%.
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.
6% ROLL-UP TO AGE 85
(1) At the end of contract year 1, and again at the end of contract years 4
through 7, the death benefit will be the enhanced death benefit.
(2) At the end of contract years 2 and 3, the death benefit will be the current
account value since it is higher than the current enhanced death benefit.
ANNUAL RATCHET TO AGE 85
(3) At the end of contract years 1 through 3, the enhanced death benefit is the
current account value.
(4) At the end of contract years 4 through 7, the enhanced death benefit is the
enhanced death benefit at the end of the prior year since it is equal to
or higher than the current account value.
GREATER OF 6% ROLL-UP TO AGE 85 OR THE ANNUAL RATCHET TO AGE 85
The enhanced death benefit under this option for each year shown would be the
greater of the amounts shown under the 6% roll-up to age 85 or the Annual
ratchet to age 85.
D-1 Appendix IV: Enhanced death benefit example
Appendix V: Hypothetical illustrations
- --------------------------------------------------------------------------------
ILLUSTRATION OF ACCOUNT VALUES, CASH VALUES AND CERTAIN GUARANTEED MINIMUM
BENEFITS
The following tables illustrate the changes in account value, cash value and
the values of the "greater of 6% Roll up to Age 85 or the Annual Ratchet to Age
85" guaranteed minimum death benefit, the Protection Plus benefit and the
guaranteed minimum income benefit under certain hypothetical circumstances for
an Accumulator contract. The table illustrates the operation of a contract
based on a male, issue age 60, who makes a single $100,000 contribution and
takes no withdrawals. The amounts shown are for the beginning of each contract
year and assume that all of the account value is invested in portfolios that
achieve investment returns at constant gross annual rates of 0% and 6% (i.e.,
before any investment management fees, 12b-1 fees or other expenses are
deducted from the underlying portfolio assets). After the deduction of the
arithmetic average of the investment management fees, 12b-1 fees and other
expenses of all of the underlying Portfolios (as described below), the
corresponding net annual rates of return would be (2.88)% and 3.12% for the
Accumulator Contract, at the 0% and 6% gross annual rates, respectively. These
net annual rates of return reflect the trust and separate account level
charges, but they do not reflect the charges we deduct from your account value
annually for the guaranteed minimum death benefit, Protection Plus benefit, and
the Living Benefit features, as well as the annual administrative charge. If
the net annual rates of return did reflect these charges, the net annual rates
of return shown would be lower; however, the values shown in the following
tables reflect all contract charges. The values shown under "Lifetime Annual
Living Benefit" reflect the lifetime income that would be guaranteed if the
Living Benefit is selected at that contract anniversary. An "N/A" in these
columns indicates that the benefit is not exercisable in that year. A "0" under
any of the Death Benefit and/or "Lifetime Annual Living Benefit" columns
indicates that the contract has terminated due to insufficient account value
and, consequently, the guaranteed benefit has no value.
With respect to fees and expenses deducted from assets of the underlying
portfolios, the amounts shown in all tables reflect (1) investment management
fees equivalent to an effective annual rate of 0.68%, and (2) an assumed
average asset charge for all other expenses of the underlying portfolios
equivalent to an effective annual rate of 0.85% and (3) 12b-1 fees equivalent
to an effective annual rate of 0.25%. These rates are the arithmetic average
for all portfolios that are available as investment options. In other words,
they are based on the hypothetical assumption that account values are allocated
equally among the variable investment options. The actual rates associated with
any contract will vary depending upon the actual allocation of contract values
among the investment options. These rates do not reflect expense limitation
arrangements in effect with respect to certain of the underlying portfolios as
described in the footnotes to the fee table for the underlying portfolios in
"Fee Table" earlier in this Prospectus. With these arrangements, the charges
shown above would be lower. This would result in higher values than those shown
in the following tables.
Because your circumstances will no doubt differ from those in the illustrations
that follow, values under your contract will differ, in most cases
substantially. Upon request, we will furnish you with a personalized
illustration.
Appendix V: Hypothetical illustrations E-1
Variable Deferred Annuity
Accumulator
$100,000 Single Contribution and No Withdrawals
Male, Issue Age 60
Benefits:
Greater of 6% Roll-Up or the Annual Ratchet to Age 85 Guaranteed Minimum
Death Benefit
Protection Plus
Guaranteed Minimum Income Benefit
Greater of 6% Roll
up
to age 85 or the
Annual
Ratchet to age 85
Guaranteed
Minimum Death
Account Value Cash Value Benefit
------------------- ------------------ -------------------
Contract Year 0% 6% 0% 6% 0% 6%
Age -------------- --------- --------- -------- --------- --------- ---------
60 1 100,000 100,000 93,000 93,000 100,000 100,000
61 2 95,408 101,387 88,408 94,387 106,000 106,000
62 3 90,893 102,735 84,893 96,735 112,360 112,360
63 4 86,446 104,038 80,446 98,038 119,102 119,102
64 5 82,062 105,290 77,062 100,290 126,248 126,248
65 6 77,732 106,485 74,732 103,485 133,823 133,823
66 7 73,449 107,614 72,449 106,614 141,852 141,852
67 8 69,207 108,672 69,207 108,672 150,363 150,363
68 9 64,997 109,649 64,997 109,649 159,385 159,385
69 10 60,812 110,538 60,812 110,538 168,948 168,948
74 15 39,927 113,302 39,927 113,302 226,090 226,090
79 20 18,355 112,146 18,355 112,146 302,560 302,560
84 25 0 105,063 0 105,063 0 404,893
89 30 0 103,357 0 103,357 0 429,187
94 35 0 104,273 0 104,273 0 429,187
95 36 0 104,471 0 104,471 0 429,187
Lifetime Annual
Guaranteed Minimum Income Benefit
Total Death Benefit ------------------------------------
with Protection Guaranteed Hypothetical
Plus Income Income
------------------- ------------------ -----------------
0% 6% 0% 6% 0% 6%
Age --------- --------- --------- -------- --------- -------
60 100,000 100,000 N/A N/A N/A N/A
61 108,400 108,400 N/A N/A N/A N/A
62 117,304 117,304 N/A N/A N/A N/A
63 126,742 126,742 N/A N/A N/A N/A
64 136,747 136,747 N/A N/A N/A N/A
65 147,352 147,352 N/A N/A N/A N/A
66 158,593 158,593 N/A N/A N/A N/A
67 170,508 170,508 N/A N/A N/A N/A
68 183,139 183,139 N/A N/A N/A N/A
69 196,527 196,527 N/A N/A N/A N/A
74 276,527 276,527 14,266 14,266 14,266 14,266
79 383,584 383,584 20,393 20,393 20,393 20,393
84 0 493,179 0 34,821 0 34,821
89 0 517,472 N/A N/A N/A N/A
94 0 517,472 N/A N/A N/A N/A
95 0 517,472 N/A N/A N/A N/A
The hypothetical investment results are illustrative only and should not be
deemed a representation of past or future investment results. Actual investment
results may be more or less than those shown and will depend on a number of
factors, including investment allocations made by the owner. The account value,
cash value and guaranteed benefits for a contract would be different from the
ones shown if the actual gross rate of investment return averaged 0% or 6% over
a period of years, but also fluctuated above or below the average for
individual contract years. We can make no representation that these
hypothetical investment results can be achieved for any one year or continued
over any period of time. In fact, for any given period of time, the investment
results could be negative.
E-2 Appendix V: Hypothetical illustrations
Statement of additional information
- --------------------------------------------------------------------------------
TABLE OF CONTENTS
Page
Tax Information 2
Unit Values 15
Equitable Life's Pending Name Change 15
Custodian and Independent Auditors 15
Distribution of the Contracts 15
Financial Statements 16
How to Obtain an Equitable Accumulator(R) Statement of Additional Information
for Separate Account No. 49
Send this request form to:
Equitable Accumulator(R)
P.O. Box 1547
Secaucus, NJ 07096-1547
- --------------------------------------------------------------------------------
Please send me an Equitable Accumulator(R) SAI for Separate Account No. 49 dated
May 1, 2004.
- --------------------------------------------------------------------------------
Name:
- --------------------------------------------------------------------------------
Address:
- --------------------------------------------------------------------------------
City State Zip
(SAI 13AMLF(5/03))
X00682/Core '02 Series
Equitable Accumulator(R) Plus(SM)
A combination variable and fixed deferred annuity contract
PROSPECTUS DATED MAY 1, 2004
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. You should read the prospectuses for each
Trust, which contain important information about the portfolios.
- --------------------------------------------------------------------------------
WHAT IS THE EQUITABLE ACCUMULATOR(R) PLUS(SM)?
Equitable Accumulator(R) Plus(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 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, the guaranteed interest option or fixed maturity options ("investment
options"). This contract may not currently be available in all states. Certain
features and benefits described in this Prospectus may vary in your state; all
features and benefits may not be available in all contracts or all states.
- --------------------------------------------------------------------------------
Variable investment options
- --------------------------------------------------------------------------------
o AXA Aggressive Allocation(1) o EQ/Bernstein Diversified Value
o AXA Conservative Allocation(1) o EQ/Calvert Socially Responsible
o AXA Conservative-Plus Allocation(1) o EQ/Capital Guardian International
o AXA Moderate Allocation(1) o EQ/Capital Guardian Research
o AXA Moderate-Plus Allocation(1) o EQ/Capital Guardian U.S. Equity
o AXA Premier VIP Aggressive Equity o EQ/Emerging Markets Equity
o AXA Premier VIP Core Bond o EQ/Equity 500 Index
o AXA Premier VIP Health Care o EQ/Evergreen Omega
o AXA Premier VIP High Yield o EQ/FI Mid Cap
o AXA Premier VIP International Equity o EQ/FI Small/Mid Cap Value
o AXA Premier VIP Large Cap Core o EQ/J.P. Morgan Core Bond
Equity o EQ/Janus Large Cap Growth
o AXA Premier VIP Large Cap Growth o EQ/Lazard Small Cap Value
o AXA Premier VIP Large Cap Value o EQ/Marsico Focus
o AXA Premier VIP Small/Mid Cap o EQ/Mercury Basic Value Equity
Growth o EQ/Mercury International Value
o AXA Premier VIP Small/Mid Cap Value o EQ/MFS Emerging Growth Companies
o AXA Premier VIP Technology o EQ/MFS Investors Trust
o EQ/Alliance Common Stock o EQ/Money Market
o EQ/Alliance Growth and Income o EQ/Putnam Growth & Income Value
o EQ/Alliance Intermediate Government o EQ/Putnam Voyager
Securities o EQ/Small Company Index
o EQ/Alliance International o EQ/Technology(2)
o EQ/Alliance Premier Growth o Laudus Rosenberg VIT Value Long/
o EQ/Alliance Quality Bond Short Equity(3)
o EQ/Alliance Small Cap Growth o U.S. Real Estate - Class II
- --------------------------------------------------------------------------------
(1) The "AXA Allocation" portfolios.
(2) Subject to shareholder approval, on or about May 14, 2004, we anticipate
that the EQ/Technology investment option (the "replaced option"), which
invests in a corresponding portfolio of EQ Advisors Trust, will be merged
into the AXA Premier VIP Technology investment option (the "surviving
option"), which invests in a corresponding portfolio of AXA Premier VIP
Trust. At that time, we will move the assets in the replaced option into the
surviving option and all allocation elections to the replaced option will be
considered allocations to the surviving option.
(3) Formerly named "AXA Rosenberg VIT Value Long/Short Equity."
You may allocate amounts to any of the variable investment options. Each
variable investment option is a subaccount of Separate Account No. 49. Each
variable investment option, in turn, invests in a corresponding securities
portfolio ("portfolio") of EQ Advisors Trust, AXA Premier VIP Trust, The
Universal Institutional Funds, Inc. or Barr Rosenberg Variable Insurance 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 ("Rollover
IRA") or Roth IRA ("Roth Conversion IRA").
o An annuity that is an investment vehicle for a qualified defined
contribution plan ("QP").
o An Internal Revenue Code Section 403(b) Tax-Sheltered Annuity ("TSA") --
("Rollover TSA").
A contribution of at least $10,000 is required to purchase a contract. We add
an amount ("credit") to your contract with each contribution you make. Expenses
for this contract may be higher than for a comparable contract without a
credit. Over time, the amount of the credit may be more than offset by fees and
charges associated with the credit.
A registration statement relating to this offering has been filed with the
Securities and Exchange Commission ("SEC"). The statement of additional
information ("SAI") dated May 1, 2004, is part of the registration statement.
The SAI is available free of charge. You may request one by writing to our
processing office or calling 1-800-789-7771. 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.
X00701/Plus '02 Series
Contents of this Prospectus
- --------------------------------------------------------------------------------
EQUITABLE ACCUMULATOR(R) PLUS(SM)
- --------------------------------------------------------------------------------
Index of key words and phrases 4
Who is Equitable Life? 5
How to reach us 6
Equitable Accumulator(R) Plus(SM) at a glance -- key features 8
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FEE TABLE 11
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Example 14
Condensed financial information 17
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1. CONTRACT FEATURES AND BENEFITS 18
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How you can purchase and contribute to your contract 18
Owner and annuitant requirements 20
How you can make your contributions 20
What are your investment options under the contract? 20
Allocating your contributions 26
Credits 27
Your benefit base 28
Annuity purchase factors 28
Our Living Benefit option 29
Guaranteed minimum death benefit 30
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 account 32
Your contract's value in the fixed maturity options 32
Termination of your contract 32
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3. TRANSFERRING YOUR MONEY AMONG THE INVESTMENT OPTIONS 33
- --------------------------------------------------------------------------------
Transferring your account value 33
Disruptive transfer activity 33
Rebalancing your account value 34
- ----------------------
"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 35
- --------------------------------------------------------------------------------
Withdrawing your account value 35
How withdrawals are taken from your account value 36
How withdrawals affect your guaranteed
minimum income benefit and guaranteed
minimum death benefit 36
Loans under rollover TSA contracts 36
Surrendering your contract to receive its cash value 37
When to expect payments 37
Your annuity payout options 37
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5. CHARGES AND EXPENSES 40
- --------------------------------------------------------------------------------
Charges that Equitable Life deducts 40
Charges that the Trusts deduct 42
Group or sponsored arrangements 42
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 44
- --------------------------------------------------------------------------------
7. TAX INFORMATION 46
- --------------------------------------------------------------------------------
Overview 46
Buying a contract to fund a retirement arrangement 46
Transfers among variable investment options 46
Taxation of nonqualified annuities 46
Individual retirement arrangements (IRAs) 48
Special rules for contracts funding qualified plans 50
Tax Sheltered Annuity contracts (TSAs) 50
Federal and state income tax withholding and information
reporting 51
Impact of taxes to Equitable Life 52
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8. MORE INFORMATION 53
- --------------------------------------------------------------------------------
About Separate Account No. 49 53
About the Trusts 53
About our fixed maturity options 53
About the general account 54
About other methods of payment 54
Dates and prices at which contract events occur 55
About your voting rights 55
About legal proceedings 56
About our independent auditors 56
Financial statements 56
Transfers of ownership, collateral assignments, loans
and borrowing 56
Distribution of the contracts 56
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9. INCORPORATION OF CERTAIN DOCUMENTS BY REFERENCE 58
- --------------------------------------------------------------------------------
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APPENDICES
- --------------------------------------------------------------------------------
I -- Condensed financial information A-1
II -- Purchase considerations for QP contracts B-1
III -- Market value adjustment example C-1
IV -- Guaranteed enhanced death benefit example D-1
V -- Hypothetical illustrations E-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 32
administrative Charge 40
annual administrative charge 40
annual ratchet death benefit 28
annuitant 18
annuity maturity date 39
annuity payout options 37
annuity purchase factors 28
automatic investment program 55
beneficiary 43
Beneficiary Continuation Option ("BCO") 44
benefit base 28
business day 55
cash value 32
charges for state premium and other applicable taxes 42
contract date 9
contract date anniversary 9
contract year 9
contributions to traditional IRAs 49
regular contributions 49
rollovers and transfers 49
credit 27
disability, terminal illness or confinement to nursing home 41
disruptive transfer activity 33
distribution charge 40
EQAccess 6
ERISA 36
Fixed-dollar option 26
fixed maturity options 25
free look 31
free withdrawal amount 41
general account 54
General dollar cost averaging 26
guaranteed interest option 25
guaranteed minimum death benefit 30
guaranteed minimum income benefit 29
IRA cover
IRS 46
Investment Simplifier 26
lifetime required minimum distribution withdrawals 36
Living Benefit option 29
Page
Living Benefit charge 41
loan reserve account 37
loans under Rollover TSA contracts 36
lump sum withdrawals 35
market adjusted amount 25
market value adjustment 25
market timing 33
maturity dates 25
maturity value 25
Mortality and expense risks charge 40
NQ cover
participant 20
portfolio cover
Principal Assurance Allocation 26
processing office 6
Protection Plus 30
Protection Plus charge 42
QP cover
rate to maturity 25
Rebalancing 34
roll-up death benefit 28
Rollover IRA cover
Rollover TSA cover
Roth Conversion IRA cover
Roth IRA 48
SAI cover
SEC cover
self-directed allocation 26
Separate Account 49 53
Standard death benefit 28
substantially equal withdrawals 35
Successor owner and annuitant 43
systematic withdrawals 35
TOPS 6
TSA cover
traditional IRA 48
Trusts cover
unit 32
variable investment options 20
wire transmittals and electronic applications 54
Withdrawal charge 40
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 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 or supplemental materials.
- --------------------------------------------------------------------------------------
Prospectus Contract or Supplemental Materials
- --------------------------------------------------------------------------------------
fixed maturity options Guarantee Periods (Guaranteed Fixed Interest Accounts
in supplemental materials)
variable investment options Investment Funds
account value Annuity Account Value
rate to maturity Guaranteed Rates
unit Accumulation Unit
Living Benefit Guaranteed Minimum Income Benefit
Guaranteed Interest Option Guaranteed Interest Account
- --------------------------------------------------------------------------------------
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 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
$508.31 billion in assets as of December 31, 2003. 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.
Effective on or about September 7, 2004, we expect, subject to regulatory
approval, to change the name of "The Equitable Life Assurance Society of the
United States" to "AXA Equitable Life Insurance Company." When the name change
becomes effective, all references in any current prospectus, prospectus
supplement or statement of additional information to "The Equitable Life
Assurance Society of the United States" will become references to "AXA
Equitable Life Insurance Company." Accordingly, all references to "Equitable
Life" or "Equitable" will become references to "AXA Equitable."
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 CONTRIBUTIONS SENT BY REGULAR MAIL:
- --------------------------------------------------------------------------------
Equitable Accumulator(R) Plus(SM)
P.O. Box 13014
Newark, NJ 07188-0014
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FOR CONTRIBUTIONS SENT BY EXPRESS DELIVERY:
- --------------------------------------------------------------------------------
Equitable Accumulator(R) Plus(SM)
c/o Bank One, N.A.
300 Harmon Meadow Boulevard, 3rd Floor
Attn: Box 13014
Secaucus, NJ 07094
- --------------------------------------------------------------------------------
FOR ALL OTHER COMMUNICATIONS (E.G., REQUESTS FOR TRANSFERS, WITHDRAWALS, OR
REQUIRED NOTICES) SENT BY REGULAR MAIL:
- --------------------------------------------------------------------------------
Equitable Accumulator(R) Plus(SM)
P.O. Box 1547
Secaucus, NJ 07096-1547
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FOR ALL OTHER COMMUNICATIONS (E.G., REQUESTS FOR TRANSFERS, WITHDRAWALS, OR
REQUIRED NOTICES) SENT BY EXPRESS DELIVERY:
- --------------------------------------------------------------------------------
Equitable Accumulator(R) Plus(SM)
200 Plaza Drive, 4th Floor
Secaucus, NJ 07094
- --------------------------------------------------------------------------------
REPORTS WE PROVIDE:
- --------------------------------------------------------------------------------
o written confirmation of financial transactions;
o statement of your contract values at the close of each calendar year and any
calendar quarter in which there was a financial transaction; and
o annual statement of your contract values as of the close of the contract
year, including notification of eligibility to exercise the guaranteed
minimum income benefit, if applicable.
- --------------------------------------------------------------------------------
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;
o change your 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 1-888-909-7770. If you are a client with AXA
Advisors you may use EQAccess by visiting our web site at
http://www.axaonline.com and clicking on EQAccess. All other clients may access
EQ Access by visiting our other web site at http://www.equitable.com. 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 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
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 (1-800-789-7771) to speak with one of our
customer service representatives. Our customer service representatives are
available on any business day from 8:30 a.m. until 5:30 p.m., Eastern Time.
WE REQUIRE THAT THE FOLLOWING TYPES OF COMMUNICATIONS BE ON SPECIFIC FORMS WE
PROVIDE FOR THAT PURPOSE:
(1) authorization for telephone transfers by your financial professional
(available only for contracts distributed through AXA Distributors);
(2) conversion of a traditional IRA to a Roth Conversion IRA contract;
6 Who is Equitable Life?
(3) election of the automatic investment program;
(4) election of the rebalancing program;
(5) requests for loans under Rollover TSA contracts;
(6) spousal consent for loans under Rollover TSA contracts;
(7) requests for withdrawals or surrenders from Rollover TSA contracts;
(8) tax withholding elections;
(9) election of the beneficiary continuation option;
(10) IRA contribution recharacterizations;
(11) certain section 1035 exchanges;
(12) direct transfers; and
(13) exercise of the Guaranteed minimum income benefit.
WE ALSO HAVE SPECIFIC FORMS THAT WE RECOMMEND YOU USE FOR THE FOLLOWING TYPES
OF REQUESTS:
(1) address changes;
(2) beneficiary changes;
(3) transfers between variable investment options;
(4) contract surrender and withdrawal requests;
(5) death claims; and
(6) general dollar cost averaging (including the fixed dollar and interest sweep
options)
TO CANCEL OR CHANGE ANY OF THE FOLLOWING WE REQUIRE WRITTEN NOTIFICATION
GENERALLY AT LEAST SEVEN CALENDAR DAYS BEFORE THE NEXT SCHEDULED TRANSACTION:
(1) automatic investment program;
(2) dollar cost averaging (including the fixed dollar amount and interest sweep
options);
(3) rebalancing;
(4) substantially equal withdrawals;
(5) systematic withdrawals; and
(6) 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
Equitable Accumulator(R) Plus(SM) at a glance -- key features
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Professional investment Equitable Accumulator(R) Plus(SM) variable investment options invest in different portfolios managed by
management professional investment advisers.
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Fixed maturity options o Fixed maturity options ("FMOs") with maturities ranging from approximately 1 to 10 years (subject
to availability).
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. If you withdraw or transfer only a portion
of a fixed maturity amount, 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 also applies.
- -----------------------------------------------------------------------------------------------------------------------------------
Guaranteed interest o Principal and interest guarantees.
option
o Interest rates set periodically.
- -----------------------------------------------------------------------------------------------------------------------------------
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 variable investment options.
contract
-------------------------------------------------------------------------------------------------------
If you are purchasing an annuity contract as an Individual Retirement Annuity (IRA) or Tax Sheltered
Annuity (TSA), or to fund an employer retirement plan (QP or Qualified Plan), 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 compared 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 and in the SAI.)
- -----------------------------------------------------------------------------------------------------------------------------------
Living Benefit protection The Living Benefit provides a guaranteed minimum income benefit. The guaranteed minimum income
benefit provides income protection for you during the annuitant's life once the owner elects to
annuitize the contract.
- -----------------------------------------------------------------------------------------------------------------------------------
Contribution amounts o Initial minimum: $10,000
o Additional minimum: $500 (NQ, QP and Rollover TSA contracts)
$100 monthly and $300 quarterly under our automatic investment program
(NQ contracts)
$50 (IRA contracts)
-------------------------------------------------------------------------------------------------------
Maximum contribution limitations may apply. In general, contributions are limited to $1.5 million.
- -----------------------------------------------------------------------------------------------------------------------------------
Credit We allocate your contributions to your account value. We allocate a credit to your account value at
the same time that we allocate your contributions. The amount of credit may be up to 6% of each
contribution, depending on certain factors. The credit is subject to recovery by us in certain limited
circumstances.
- -----------------------------------------------------------------------------------------------------------------------------------
Access to your money o Lump sum withdrawals
o Several withdrawal options on a periodic basis
o Loans under Rollover TSA contracts
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 tax penalty.
- -----------------------------------------------------------------------------------------------------------------------------------
Payout options o Fixed annuity payout options
o Variable Immediate Annuity payout options
o Income Manager(R) payout options
- -----------------------------------------------------------------------------------------------------------------------------------
8 Equitable Accumulator(R) Plus(SM) at a glance -- key features
- -----------------------------------------------------------------------------------------------------------------------------------
Additional features o Guaranteed minimum death
benefit options
o Dollar cost averaging
o Automatic investment program
o Account value rebalancing (quarterly, semiannually, and annually)
o Free transfers
o Waiver of withdrawal charge for disability, terminal illness, or confinement to a nursing home
o Protection Plus, an optional death benefit available under certain contracts (subject to
state availability)
- -----------------------------------------------------------------------------------------------------------------------------------
Fees and charges o Daily charges on amounts invested in the variable investment options for mortality and expense risks,
administrative, and distribution charges at an annual rate of 1.40%.
o The charges for the guaranteed minimum death benefits range from 0.0% to 0.60%, annually, of the
applicable benefit base. The benefit base is described under "Your benefit base" in
"Contract features and benefits" later in this Prospectus.
o Annual 0.35% Protection Plus charge for this optional death benefit.
o Annual 0.60% of the applicable benefit base charge for the optional Living Benefit until you exercise your
guaranteed minimum income benefit, elect another annuity payout or the contract date anniversary after the
annuitant reaches age 85, whichever occurs first.
o If your account value at the end of the contract year is less than $50,000, we deduct an annual
administrative charge equal to $30, or during the first two contract years, 2% of your
account value, if less. If your account value, on the contract date anniversary, is
$50,000 or more, we will not deduct the charge.
o No sales charge deducted at the time you make contributions.
o During the first eight contract years following a contribution, a charge will be deducted from amounts that
you withdraw that exceed 15% of your account value. We use the account value at the beginning
of each contract year to calculate the 15% amount available. The charge is 8% in each of the
first two contract years following a contribution; the charge is 7% in the third and fourth contract
years following a contribution; thereafter, it declines by 1% each year in the fifth to
eighth contract year following a contribution. There is no withdrawal charge in the ninth
and later contract years following a contribution. 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
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." For example, if your
contract date is May 1, your contract date anniversary is April 30.
-------------------------------------------------------------------------------------------------------------
o We deduct a charge designed to approximate certain taxes that may be imposed on us, such
as premium taxes in your state. This 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 the Variable Immediate Annuity
payout options.
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 0.10% to 1.50% annually,
12b-1 fees of either 0.25% or 0.35% annually and other expenses.
- ------------------------------------------------------------------------------------------------------------------------------------
Annuitant issue ages NQ: 0-80
Rollover IRA, Roth Conversion IRA and Rollover TSA: 20-80
QP: 20-70
- ------------------------------------------------------------------------------------------------------------------------------------
The above is not a complete description of all material provisions of the
contract. In some cases, restrictions or exceptions apply. Also, all features
of the contract 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.
Equitable Accumulator(R) Plus(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, credits, fees and/or charges that are
different from those in the contracts 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 Equitable Accumulator(R) Plus(SM) at a glance -- key features
Fee table
- --------------------------------------------------------------------------------
The following tables describe the fees and expenses that you will pay when
buying, owning, and surrendering the contract. Each of the charges and expenses
is more fully described in "Charges and expenses" later in this Prospectus.
The first table describes fees and expenses that you will pay at the time you
surrender the contract or if you make certain withdrawals or apply your cash
value to certain payout options or if you purchase a Variable Immediate
Annuity. Charges designed to approximate certain taxes that may be imposed on
us, such as premium taxes in your state, may also apply. Charges for certain
features shown in the fee table are mutually exclusive.
- ------------------------------------------------------------------------------------------------------------------------------------
Charges we deduct from your account value at the time you request certain transactions
- ------------------------------------------------------------------------------------------------------------------------------------
Maximum withdrawal charge as a percentage of contributions with-
drawn* (deducted if you surrender your contract, make certain
withdrawals, or apply your cash value to certain payout options).(1) 8.00%
Charge if you elect a Variable Immediate Annuity payout option $350
- ------------------------------------------------------------------------------------------------------------------------------------
The next table describes the fees and expenses that you will pay periodically during the
time that you own the contract, not including the underlying trust portfolio fees and expenses.
- ------------------------------------------------------------------------------------------------------------------------------------
Charges we deduct from your variable investment options expressed as an annual
percentage of daily net assets
- ------------------------------------------------------------------------------------------------------------------------------------
Mortality and expense risks 0.90%*
Administrative 0.25%
Distribution 0.25%
-------
Total annual expenses 1.40%
- ------------------------------------------------------------------------------------------------------------------------------------
Charges we deduct from your account value on each contract date anniversary
- ------------------------------------------------------------------------------------------------------------------------------------
Maximum annual administrative charge
If your account value on a contract date anniversary is less than
$ 50,000(2) $ 30
If your account value on a contract date anniversary is $50,000
or more $ 0
- ------------------------------------------------------------------------------------------------------------------------------------
Charges we deduct from your account value each year if you elect the optional benefit
- ------------------------------------------------------------------------------------------------------------------------------------
Guaranteed minimum death benefit charge (calculated as a
percentage of the applicable benefit base. Deducted annually on each
contract date anniversary for which the benefit is in effect.)
Standard death benefit 0.00%
Annual Ratchet to age 85 0.30% of the Annual Ratchet to age 85 benefit base
6% Roll-up to age 85 0.45% of the 6% roll-up to age 85 benefit base
Greater of 6% Roll-up to age 85 or Annual Ratchet to age 85 0.60% of the greater of the 6% roll-up to age 85
benefit base or the Annual Ratchet to age 85 benefit base,
as applicable
- ------------------------------------------------------------------------------------------------------------------------------------
Living Benefit charge (calculated as a percentage of the applicable
benefit base. Deducted annually on each contract date anniversary for
which the benefit is in effect.) 0.60 %
- ------------------------------------------------------------------------------------------------------------------------------------
Protection Plus benefit charge (calculated as a percentage of the
account value. Deducted annually on each contract date anniversary
for which the benefit is in effect.) 0.35 %
- ------------------------------------------------------------------------------------------------------------------------------------
* These charges compensate us for certain risks we assume and expenses we incur
under the contract. They also compensate us for the expense associated with
the credit. We expect to make a profit from these charges.
Fee table 11
You also bear your proportionate share of all fees and expenses paid by a
"Portfolio" that corresponds to any variable investment option you are using.
This table shows the lowest and highest total operating expenses charged by any
of the Portfolios that you will pay periodically during the time that you own
the contract. These fees and expenses are reflected in the Portfolio's net
asset value each day. Therefore, they reduce the investment return of the
Portfolio and the related variable investment option. Actual fees and expenses
are likely to fluctuate from year to year. More detail concerning each
Portfolio's fees and expenses is contained in the Trust prospectus for the
Portfolio.
- ------------------------------------------------------------------------------------------------------------------------------------
Portfolio operating expenses expressed as an annual percentage of daily net assets
- ------------------------------------------------------------------------------------------------------------------------------------
Total Annual Portfolio Operating Expenses for 2003 (expenses that are deducted Lowest Highest
from Portfolio assets including management fees, 12b-1 fees, service fees, and/or
other expenses)(3) 0.56% 10.23%
This table shows the fees and expenses for 2003 as an annual percentage of each
Portfolio's daily average net assets.
- ------------------------------------------------------------------------------------------------------------------------------------
Total Net Total
Annual Fee Waivers Annual
Underlying Expenses and/or Expense
Portfolio (Before Expense After
Manage- 12b-1 Other Fees and Expense Reimburse- Expense
Portfolio Name ment Fees(4) Fees(5) Expenses(6) Expenses(7) Limitation) ments(8) Limitations
- ------------------------------------------------------------------------------------------------------------------------------------
AXA PREMIER VIP TRUST:
- ------------------------------------------------------------------------------------------------------------------------------------
AXA Aggressive Allocation 0.10% 0.25% 5.91% 1.08% 7.34% (5.98)% 1.36%
AXA Conservative Allocation 0.10% 0.25% 9.04% 0.84% 10.23% (9.13)% 1.10%
AXA Conservative-Plus Allocation 0.10% 0.25% 4.13% 0.88% 5.36% (4.21)% 1.15%
AXA Moderate Allocation 0.10% 0.25% 0.39% 0.86% 1.60% (0.43)% 1.17%
AXA Moderate-Plus Allocation 0.10% 0.25% 1.77% 1.13% 3.25% (1.87)% 1.38%
AXA Premier VIP Aggressive Equity 0.62% 0.25% 0.15% -- 1.02% -- 1.02%
AXA Premier VIP Core Bond 0.60% 0.25% 0.26% -- 1.11% (0.16)% 0.95%
AXA Premier VIP Health Care 1.20% 0.25% 0.48% -- 1.93% (0.08)% 1.85%
AXA Premier VIP High Yield 0.59% 0.25% 0.16% -- 1.00% -- 1.00%
AXA Premier VIP International Equity 1.05% 0.25% 0.73% -- 2.03% (0.23)% 1.80%
AXA Premier VIP Large Cap Core Equity 0.90% 0.25% 0.52% -- 1.67% (0.32)% 1.35%
AXA Premier VIP Large Cap Growth 0.90% 0.25% 0.43% -- 1.58% (0.23)% 1.35%
AXA Premier VIP Large Cap Value 0.90% 0.25% 0.43% -- 1.58% (0.23)% 1.35%
AXA Premier VIP Small/Mid Cap Growth 1.10% 0.25% 0.35% -- 1.70% (0.10)% 1.60%
AXA Premier VIP Small/Mid Cap Value 1.10% 0.25% 0.31% -- 1.66% (0.06)% 1.60%
AXA Premier VIP Technology 1.20% 0.25% 0.83% -- 2.28% (0.43)% 1.85%
- ------------------------------------------------------------------------------------------------------------------------------------
EQ ADVISORS TRUST:
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/Alliance Common Stock 0.48% 0.25% 0.06% -- 0.79% -- 0.79%
EQ/Alliance Growth and Income 0.57% 0.25% 0.06% -- 0.88% -- 0.88%
EQ/Alliance Intermediate
Government Securities 0.49% 0.25% 0.08% -- 0.82% -- 0.82%
EQ/Alliance International 0.74% 0.25% 0.13% -- 1.12% (0.02)% 1.10%
EQ/Alliance Premier Growth 0.90% 0.25% 0.05% -- 1.20% (0.04)% 1.16%
EQ/Alliance Quality Bond 0.52% 0.25% 0.06% -- 0.83% -- 0.83%
EQ/Alliance Small Cap Growth 0.75% 0.25% 0.07% -- 1.07% -- 1.07%
EQ/Bernstein Diversified Value 0.64% 0.25% 0.06% -- 0.95% 0.00% 0.95%
EQ/Calvert Socially Responsible 0.65% 0.25% 0.55% -- 1.45% (0.40)% 1.05%
EQ/Capital Guardian International 0.85% 0.25% 0.21% -- 1.31% (0.11)% 1.20%
EQ/Capital Guardian Research 0.65% 0.25% 0.07% -- 0.97% (0.02)% 0.95%
EQ/Capital Guardian U.S. Equity 0.65% 0.25% 0.07% -- 0.97% (0.02)% 0.95%
EQ/Emerging Markets Equity 1.15% 0.25% 0.40% -- 1.80% 0.00% 1.80%
EQ/Equity 500 Index 0.25% 0.25% 0.06% -- 0.56% -- 0.56%
EQ/Evergreen Omega 0.65% 0.25% 0.25% -- 1.15% (0.20)% 0.95%
EQ/FI Mid Cap 0.70% 0.25% 0.08% -- 1.03% (0.03)% 1.00%
EQ/FI Small/Mid Cap Value 0.75% 0.25% 0.10% -- 1.10% 0.00% 1.10%
EQ/Janus Large Cap Growth 0.90% 0.25% 0.09% -- 1.24% (0.09)% 1.15%
EQ/J.P. Morgan Core Bond 0.44% 0.25% 0.08% -- 0.77% 0.00% 0.77%
EQ/Lazard Small Cap Value 0.75% 0.25% 0.10% -- 1.10% 0.00% 1.10%
EQ/Marsico Focus 0.90% 0.25% 0.07% -- 1.22% (0.07)% 1.15%
EQ/Mercury Basic Value Equity 0.60% 0.25% 0.07% -- 0.92% 0.00% 0.92%
EQ/Mercury International Value 0.85% 0.25% 0.16% -- 1.26% (0.01)% 1.25%
EQ/MFS Emerging Growth Companies 0.65% 0.25% 0.07% -- 0.97% -- 0.97%
EQ/MFS Investors Trust 0.60% 0.25% 0.11% -- 0.96% (0.01)% 0.95%
- ------------------------------------------------------------------------------------------------------------------------------------
12 Fee table
Total Net Total
Annual Fee Waivers Annual
Underlying Expenses and/or Expenses
Portfolio (Before Expense After
Manage- 12b-1 Other Fees and Expense Reimburse- Expense
ment Fees(4) Fees(5) Expenses(6) Expenses(7) Limitations ments(8) Limitations
- ------------------------------------------------------------------------------------------------------------------------------------
EQ ADVISORS TRUST:
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/Money Market 0.33% 0.25% 0.06% -- 0.64% -- 0.64%
EQ/Putnam Growth & Income Value 0.60% 0.25% 0.10% -- 0.95% 0.00% 0.95%
EQ/Putnam Voyager 0.65% 0.25% 0.13% -- 1.03% (0.08)% 0.95%
EQ/Small Company Index 0.25% 0.25% 0.35% -- 0.85% 0.00% 0.85%
EQ/Technology 0.90% 0.25% 0.09% -- 1.24% (0.09)% 1.15%
- ------------------------------------------------------------------------------------------------------------------------------------
BARR ROSENBERG VARIABLE INSURANCE TRUST:
- ------------------------------------------------------------------------------------------------------------------------------------
Laudus Rosenberg VIT Value
Long/Short Equity 1.50% 0.25% 5.80% -- 7.55% (4.57)% 2.98%
- ------------------------------------------------------------------------------------------------------------------------------------
THE UNIVERSAL INSTITUTIONAL FUNDS, INC.:
- ------------------------------------------------------------------------------------------------------------------------------------
U.S. Real Estate-- Class II 0.80% 0.35% 0.31% -- 1.46% (0.11)% 1.35%
- ------------------------------------------------------------------------------------------------------------------------------------
Notes:
(1) Deducted upon a withdrawal of amounts in excess of the 15% free withdrawal
amount, if applicable.
The withdrawal charge percentage we use is determined by the contract year in which you Contract
make the withdrawal or surrender your contract. For each contribution, we consider the Year
contract year in which we receive that contribution to be "contract year 1") 1............... 8.00%
2............... 8.00%
3............... 7.00%
4............... 7.00%
5............... 6.00%
6............... 5.00%
7............... 4.00%
8............... 3.00%
9+.............. 0.00%
(2) During the first two contract years this charge, if it applies, is equal to
the lesser of $30 or 2% of your account value. Thereafter, the charge is $30
for each contract year.
(3) "Total Annual Portfolio Operating Expenses" are based, in part, on estimated
amounts for options added during the fiscal year 2003 and for the underlying
portfolios.
(4) The management fees for each Portfolio cannot be increased without a vote of
that Portfolio's shareholders. See footnote (8) for any expense limitation
agreement information.
(5) 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.
(6) Other expenses shown are those incurred in 2003. The amounts shown as "Other
Expenses" will fluctuate from year to year depending on actual expenses. See
footnote (8) for any expense limitation agreement information.
(7) The AXA Allocation variable investment options invest in corresponding
portfolios of the AXA Premier VIP Trust. Each AXA Allocation portfolio in
turn invests in shares of other portfolios of the EQ Advisors Trust and AXA
Premier VIP Trust ("the underlying portfolios"). Amounts shown reflect each
AXA Allocation portfolio's pro rata share of the fees and expenses of the
various underlying portfolios in which it invests. The fees and expenses
have been estimated based on the respective weighted investment allocations
as of 12/31/03. A "-" indicates that the listed portfolio does not invest in
underlying portfolios, i.e., it is not an allocaiton portfolio.
(8) The amounts shown reflect any fee waivers and/or expense reimbursements that
applied to each Portfolio. A "-" indicates that there is no expense
limitation in effect. "0.00%" indicates that the expense limitation
arrangement did not result in a fee waiver or reimbursement. Equitable Life,
the investment manager of AXA Premier VIP Trust and EQ Advisors Trust, has
entered into Expense Limitation Agreements with respect to certain
Portfolios, which are effective through April 30, 2005. Under these
agreements Equitable Life has agreed to waive or limit its fees and assume
other expenses of certain Portfolios, if necessary, in an amount that limits
each affected Portfolio's Total Annual Expenses (exclusive of interest,
taxes, brokerage commissions, capitalized expenditures and extraordinary
expenses) to not more than specified amounts. 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. Morgan Stanley Investment Management Inc.,
which does business in certain instances as "Van Kampen," is the manager of
The Universal Institutional Funds, Inc. -- U.S. Real Estate Portfolio --
Class II, and has voluntarily agreed to reduce its management fee and/or
reimburse the Portfolio so that total annual operating expenses of the
Portfolio (exclusive of investment related expenses, such as foreign country
tax expense and interest expense on amounts borrowed) are not more than
specified amounts. Van Kampen reserves the right to terminate any waiver
and/or reimbursement at any time without notice. Charles Schwab Investment
Management, Inc., the manager of the Barr Rosenberg Variable Insurance Trust
-- Laudus Rosenberg VIT Value Long/Short Equity Portfolio, has voluntarily
agreed to reimburse expenses in excess of specified amounts. See the
Prospectus for each applicable underlying Trust for more information about
the arrangements. In addition, a portion of the brokerage commissions of
certain Portfolios of EQ Advisors Trust Portfolio and each AXA Premier VIP
Trust Portfolio is used to reduce the applicable Portfolio's expenses. If
the above table reflected both the expense limitation arrangements plus the
portion of the brokerage commissions used to reduce portfolio expenses, the
net expenses would be as shown in the table below:
- -----------------------------------------------
Portfolio Name
- -----------------------------------------------
AXA Aggressive Allocation 0.95%
- -----------------------------------------------
AXA Conservative Allocation 0.73%
- -----------------------------------------------
AXA Conservative-Plus Allocation 0.78%
- -----------------------------------------------
AXA Moderate Allocation 0.79%
- -----------------------------------------------
AXA Moderate-Plus Allocation 0.99%
- -----------------------------------------------
AXA Premier VIP Aggressive Equity 0.95%
- -----------------------------------------------
AXA Premier VIP Health Care 1.84%
- -----------------------------------------------
Fee table 13
- ----------------------------------------------------
Portfolio Name
- ----------------------------------------------------
AXA Premier VIP International Equity 1.73%
- ----------------------------------------------------
AXA Premier VIP Large Cap Core Equity 1.32%
- ----------------------------------------------------
AXA Premier VIP Large Cap Growth 1.32%
- ----------------------------------------------------
AXA Premier VIP Large Cap Value 1.28%
- ----------------------------------------------------
AXA Premier VIP Small/Mid Cap Growth 1.46%
- ----------------------------------------------------
AXA Premier VIP Small/Mid Cap Value 1.52%
- ----------------------------------------------------
AXA Premier VIP Technology 1.70%
- ----------------------------------------------------
EQ/Alliance Common Stock 0.77%
- ----------------------------------------------------
EQ/Alliance Growth and Income 0.85%
- ----------------------------------------------------
EQ/Alliance Premier Growth 1.15%
- ----------------------------------------------------
EQ/Alliance Small Cap Growth 1.03%
- ----------------------------------------------------
EQ/Calvert Socially Responsible 1.00%
- ----------------------------------------------------
EQ/Capital Guardian International 1.18%
- ----------------------------------------------------
EQ/Capital Guardian Research 0.93%
- ----------------------------------------------------
EQ/Capital Guardian U.S. Equity 0.93%
- ----------------------------------------------------
EQ/Emerging Markets Equity 1.78%
- ----------------------------------------------------
EQ/Evergreen Omega 0.84%
- ----------------------------------------------------
EQ/FI Mid Cap 0.88%
- ----------------------------------------------------
EQ/FI Small/Mid Cap Value 1.04%
- ----------------------------------------------------
EQ/Lazard Small Cap Value 1.00%
- ----------------------------------------------------
EQ/Marsico Focus 1.10%
- ----------------------------------------------------
EQ/Mercury Basic Value Equity 0.91%
- ----------------------------------------------------
EQ/Mercury International Value 1.18%
- ----------------------------------------------------
EQ/MFS Emerging Growth Companies 0.96%
- ----------------------------------------------------
EQ/MFS Investors Trust 0.94%
- ----------------------------------------------------
EQ/Putnam Growth & Income Value 0.93%
- ----------------------------------------------------
EQ/Putnam Voyager 0.93%
- ----------------------------------------------------
EQ/Technology 1.01%
- ----------------------------------------------------
EXAMPLE
This example is intended to help you compare the cost of investing in the
contract with the cost of investing in other variable annuity contracts. These
costs include contract owner transaction expenses, contract fees, separate
account annual expenses, and underlying trust fees and expenses (including the
underlying portfolio fees and expenses).
The example below shows the expenses that a hypothetical contract owner (who
has elected the Living Benefit with the enhanced death benefit that provides
for the greater of the 6% Roll-up or the Annual Ratchet to age 85 and
Protection Plus) would pay in the situations illustrated. 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 $1.60 per $10,000.
The fixed maturity options and guaranteed interest option are not covered by
the examples. However, the annual administrative charge, the withdrawal charge,
the charge for any optional benefits and the charge if you elect a Variable
Immediate Annuity payout option do apply to the fixed maturity options and
guaranteed interest option. 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.
The example assumes that you invest $10,000 in the contract for the time
periods indicated. The example also assumes that your investment has a 5%
return each year. This example 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 example
is not an estimate or guarantee of future investment performance.
Although your actual costs may be higher or lower, based on these assumptions,
your costs would be:
14 Fee table
- -----------------------------------------------------------------------------------------------------------
If you surrender your contract
at the end of the applicable time period
Portfolio Name 1 year 3 years 5 years 10 years
- -----------------------------------------------------------------------------------------------------------
AXA PREMIER VIP TRUST:
- -----------------------------------------------------------------------------------------------------------
AXA Aggressive Allocation $ 1,921.80 $ 3,917.98 $ 5,732.81 $ 9,233.68
AXA Conservative Allocation $ 2,236.88 $ 4,695.42 $ 6,785.67 $ 10,388.54
AXA Conservative-Plus Allocation $ 1,705.34 $ 3,353.03 $ 4,920.69 $ 8,169.69
AXA Moderate Allocation $ 1,295.11 $ 2,211.06 $ 3,162.71 $ 5,359.93
AXA Moderate-Plus Allocation $ 1,475.16 $ 2,723.93 $ 3,971.17 $ 6,737.49
AXA Premier VIP Aggressive Equity $ 1,231.57 $ 2,025.29 $ 2,862.26 $ 4,811.01
AXA Premier VIP Core Bond $ 1,241.28 $ 2,054.00 $ 2,909.02 $ 4,897.82
AXA Premier VIP Health Care $ 1,330.74 $ 2,314.02 $ 3,327.45 $ 5,652.35
AXA Premier VIP High Yield $ 1,229.42 $ 2,018.90 $ 2,851.84 $ 4,791.60
AXA Premier VIP International Equity $ 1,341.66 $ 2,345.42 $ 3,377.46 $ 5,739.93
AXA Premier VIP Large Cap Core Equity $ 1,302.35 $ 2,232.05 $ 3,196.39 $ 5,420.20
AXA Premier VIP Large Cap Growth $ 1,292.53 $ 2,203.57 $ 3,150.68 $ 5,338.32
AXA Premier VIP Large Cap Value $ 1,292.53 $ 2,203.57 $ 3,150.68 $ 5,338.32
AXA Premier VIP Small/Mid Cap Growth $ 1,305.63 $ 2,241.53 $ 3,211.59 $ 5,447.32
AXA Premier VIP Small/Mid Cap Value $ 1,301.26 $ 2,228.89 $ 3,191.32 $ 5,411.14
AXA Premier VIP Technology $ 1,368.95 $ 2,423.63 $ 3,501.50 $ 5,954.80
- -----------------------------------------------------------------------------------------------------------
EQ ADVISORS TRUST:
- -----------------------------------------------------------------------------------------------------------
EQ/Alliance Common Stock $ 1,206.76 $ 1,951.65 $ 2,741.93 $ 4,585.38
EQ/Alliance Growth and Income $ 1,216.47 $ 1,980.51 $ 2,789.16 $ 4,674.32
EQ/Alliance Intermediate Government Securities $ 1,210.00 $ 1,961.28 $ 2,757.69 $ 4,615.12
EQ/Alliance International $ 1,242.36 $ 2,057.19 $ 2,914.20 $ 4,907.41
EQ/Alliance Premier Growth $ 1,251.04 $ 2,082.71 $ 2,955.63 $ 4,983.84
EQ/Alliance Quality Bond $ 1,211.08 $ 1,964.48 $ 2,762.94 $ 4,625.01
EQ/Alliance Small Cap Growth $ 1,236.97 $ 2,041.25 $ 2,888.26 $ 4,859.34
EQ/Bernstein Diversified Value $ 1,224.02 $ 2,002.91 $ 2,825.76 $ 4,742.92
EQ/Calvert Socially Responsible $ 1,278.33 $ 2,162.33 $ 3,084.32 $ 5,218.66
EQ/Capital Guardian International $ 1,263.05 $ 2,117.79 $ 3,012.43 $ 5,087.93
EQ/Capital Guardian Research $ 1,226.18 $ 2,009.31 $ 2,836.20 $ 4,762.42
EQ/Capital Guardian U.S. Equity $ 1,226.18 $ 2,009.31 $ 2,836.20 $ 4,762.42
EQ/Emerging Markets Equity $ 1,316.55 $ 2,273.09 $ 3,262.11 $ 5,537.09
EQ/Equity 500 Index $ 1,181.95 $ 1,877.66 $ 2,620.38 $ 4,354.24
EQ/Evergreen Omega $ 1,245.60 $ 2,066.75 $ 2,929.74 $ 4,936.14
EQ/FI Mid Cap $ 1,232.65 $ 2,028.48 $ 2,867.46 $ 4,820.69
EQ/FI Small/Mid Cap Value $ 1,240.20 $ 2,050.81 $ 2,903.83 $ 4,888.21
EQ/J.P. Morgan Core Bond $ 1,204.60 $ 1,945.23 $ 2,731.41 $ 4,565.50
EQ/Janus Large Cap Growth $ 1,255.40 $ 2,095.48 $ 2,976.31 $ 5,021.83
EQ/Lazard Small Cap Value $ 1,240.20 $ 2,050.81 $ 2,903.83 $ 4,888.21
EQ/Marsico Focus $ 1,253.22 $ 2,089.09 $ 2,965.98 $ 5,002.85
EQ/Mercury Basic Value Equity $ 1,220.79 $ 1,993.32 $ 2,810.09 $ 4,713.58
EQ/Mercury International Value $ 1,257.59 $ 2,101.86 $ 2,986.64 $ 5,040.77
EQ/MFS Emerging Growth Companies $ 1,226.18 $ 2,009.31 $ 2,836.20 $ 4,762.42
EQ/MFS Investors Trust $ 1,225.10 $ 2,006.11 $ 2,830.98 $ 4,752.67
- -----------------------------------------------------------------------------------------------------------
- -------------------------------------------------------------------------------------------------------------
If you annuitize at the end of the
applicable time period
Portfolio Name 1 year 3 years 5 years 10 years
- -------------------------------------------------------------------------------------------------------------
AXA PREMIER VIP TRUST:
- -------------------------------------------------------------------------------------------------------------
AXA Aggressive Allocation $ 1,471.80 $ 3,567.98 $ 5,482.81 $ 9,583.68
AXA Conservative Allocation $ 1,786.88 $ 4,345.42 $ 6,535.67 $ 10,738.54
AXA Conservative-Plus Allocation $ 1,255.34 $ 3,003.03 $ 4,670.69 $ 8,519.69
AXA Moderate Allocation $ 845.11 $ 1,861.06 $ 2,912.71 $ 5,709.93
AXA Moderate-Plus Allocation $ 1,025.16 $ 2,373.93 $ 3,721.17 $ 7,087.49
AXA Premier VIP Aggressive Equity $ 781.57 $ 1,675.29 $ 2,612.26 $ 5,161.01
AXA Premier VIP Core Bond $ 791.28 $ 1,704.00 $ 2,659.02 $ 5,247.82
AXA Premier VIP Health Care $ 880.74 $ 1,964.02 $ 3,077.45 $ 6,002.35
AXA Premier VIP High Yield $ 779.42 $ 1,668.90 $ 2,601.84 $ 5,141.60
AXA Premier VIP International Equity $ 891.66 $ 1,995.42 $ 3,127.46 $ 6,089.93
AXA Premier VIP Large Cap Core Equity $ 852.35 $ 1,882.05 $ 2,946.39 $ 5,770.20
AXA Premier VIP Large Cap Growth $ 842.53 $ 1,853.57 $ 2,900.68 $ 5,688.32
AXA Premier VIP Large Cap Value $ 842.53 $ 1,853.57 $ 2,900.68 $ 5,688.32
AXA Premier VIP Small/Mid Cap Growth $ 855.63 $ 1,891.53 $ 2,961.59 $ 5,797.32
AXA Premier VIP Small/Mid Cap Value $ 851.26 $ 1,878.89 $ 2,941.32 $ 5,761.14
AXA Premier VIP Technology $ 918.95 $ 2,073.63 $ 3,251.50 $ 6,304.80
- -------------------------------------------------------------------------------------------------------------
EQ ADVISORS TRUST:
- -------------------------------------------------------------------------------------------------------------
EQ/Alliance Common Stock $ 756.76 $ 1,601.65 $ 2,491.93 $ 4,935.38
EQ/Alliance Growth and Income $ 766.47 $ 1,630.51 $ 2,539.16 $ 5,024.32
EQ/Alliance Intermediate Government Securities $ 760.00 $ 1,611.28 $ 2,507.69 $ 4,965.12
EQ/Alliance International $ 792.36 $ 1,707.19 $ 2,664.20 $ 5,257.41
EQ/Alliance Premier Growth $ 801.04 $ 1,732.71 $ 2,705.63 $ 5,333.84
EQ/Alliance Quality Bond $ 761.08 $ 1,614.48 $ 2,512.94 $ 4,975.01
EQ/Alliance Small Cap Growth $ 786.97 $ 1,691.25 $ 2,638.26 $ 5,209.34
EQ/Bernstein Diversified Value $ 774.02 $ 1,652.91 $ 2,575.76 $ 5,092.92
EQ/Calvert Socially Responsible $ 828.33 $ 1,812.33 $ 2,834.32 $ 5,568.66
EQ/Capital Guardian International $ 813.05 $ 1,767.79 $ 2,762.43 $ 5,437.93
EQ/Capital Guardian Research $ 776.18 $ 1,659.31 $ 2,586.20 $ 5,112.42
EQ/Capital Guardian U.S. Equity $ 776.18 $ 1,659.31 $ 2,586.20 $ 5,112.42
EQ/Emerging Markets Equity $ 866.55 $ 1,923.09 $ 3,012.11 $ 5,887.09
EQ/Equity 500 Index $ 731.95 $ 1,527.66 $ 2,370.38 $ 4,704.24
EQ/Evergreen Omega $ 795.60 $ 1,716.75 $ 2,679.74 $ 5,286.14
EQ/FI Mid Cap $ 782.65 $ 1,678.48 $ 2,617.46 $ 5,170.69
EQ/FI Small/Mid Cap Value $ 790.20 $ 1,700.81 $ 2,653.83 $ 5,238.21
EQ/J.P. Morgan Core Bond $ 754.60 $ 1,595.23 $ 2,481.41 $ 4,915.50
EQ/Janus Large Cap Growth $ 805.40 $ 1,745.48 $ 2,726.31 $ 5,371.83
EQ/Lazard Small Cap Value $ 790.20 $ 1,700.81 $ 2,653.83 $ 5,238.21
EQ/Marsico Focus $ 803.22 $ 1,739.09 $ 2,715.98 $ 5,352.85
EQ/Mercury Basic Value Equity $ 770.79 $ 1,643.32 $ 2,560.09 $ 5,063.58
EQ/Mercury International Value $ 807.59 $ 1,751.86 $ 2,736.64 $ 5,390.77
EQ/MFS Emerging Growth Companies $ 776.18 $ 1,659.31 $ 2,586.20 $ 5,112.42
EQ/MFS Investors Trust $ 775.10 $ 1,656.11 $ 2,580.98 $ 5,102.67
- -------------------------------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------------------------
If you do not surrender your contract
at the end of the applicable time period
Portfolio Name 1 year 3 years 5 years 10 years
- -----------------------------------------------------------------------------------------------------------------
AXA PREMIER VIP TRUST:
- -----------------------------------------------------------------------------------------------------------------
AXA Aggressive Allocation $ 1,121.80 $ 3,217.98 $ 5,132.81 $ 9,233.68
AXA Conservative Allocation $ 1,436.88 $ 3,995.42 $ 6,185.67 $ 10,388.54
AXA Conservative-Plus Allocation $ 905.34 $ 2,653.03 $ 4,320.69 $ 8,169.69
AXA Moderate Allocation $ 495.11 $ 1,511.06 $ 2,562.71 $ 5,359.93
AXA Moderate-Plus Allocation $ 675.16 $ 2,023.93 $ 3,371.17 $ 6,737.49
AXA Premier VIP Aggressive Equity $ 431.57 $ 1,325.29 $ 2,262.26 $ 4,811.01
AXA Premier VIP Core Bond $ 441.28 $ 1,354.00 $ 2,309.02 $ 4,897.82
AXA Premier VIP Health Care $ 530.74 $ 1,614.02 $ 2,727.45 $ 5,652.35
AXA Premier VIP High Yield $ 429.42 $ 1,318.90 $ 2,251.84 $ 4,791.60
AXA Premier VIP International Equity $ 541.66 $ 1,645.42 $ 2,777.46 $ 5,739.93
AXA Premier VIP Large Cap Core Equity $ 502.35 $ 1,532.05 $ 2,596.39 $ 5,420.20
AXA Premier VIP Large Cap Growth $ 492.53 $ 1,503.57 $ 2,550.68 $ 5,338.32
AXA Premier VIP Large Cap Value $ 492.53 $ 1,503.57 $ 2,550.68 $ 5,338.32
AXA Premier VIP Small/Mid Cap Growth $ 505.63 $ 1,541.53 $ 2,611.59 $ 5,447.32
AXA Premier VIP Small/Mid Cap Value $ 501.26 $ 1,528.89 $ 2,591.32 $ 5,411.14
AXA Premier VIP Technology $ 568.95 $ 1,723.63 $ 2,901.50 $ 5,954.80
- -----------------------------------------------------------------------------------------------------------------
EQ ADVISORS TRUST:
- -----------------------------------------------------------------------------------------------------------------
EQ/Alliance Common Stock $ 406.76 $ 1,251.65 $ 2,141.93 $ 4,585.38
EQ/Alliance Growth and Income $ 416.47 $ 1,280.51 $ 2,189.16 $ 4,674.32
EQ/Alliance Intermediate Government Securities $ 410.00 $ 1,261.28 $ 2,157.69 $ 4,615.12
EQ/Alliance International $ 442.36 $ 1,357.19 $ 2,314.20 $ 4,907.41
EQ/Alliance Premier Growth $ 451.04 $ 1,382.71 $ 2,355.63 $ 4,983.84
EQ/Alliance Quality Bond $ 411.08 $ 1,264.48 $ 2,162.94 $ 4,625.01
EQ/Alliance Small Cap Growth $ 436.97 $ 1,341.25 $ 2,288.26 $ 4,859.34
EQ/Bernstein Diversified Value $ 424.02 $ 1,302.91 $ 2,225.76 $ 4,742.92
EQ/Calvert Socially Responsible $ 478.33 $ 1,462.33 $ 2,484.32 $ 5,218.66
EQ/Capital Guardian International $ 463.05 $ 1,417.79 $ 2,412.43 $ 5,087.93
EQ/Capital Guardian Research $ 426.18 $ 1,309.31 $ 2,236.20 $ 4,762.42
EQ/Capital Guardian U.S. Equity $ 426.18 $ 1,309.31 $ 2,236.20 $ 4,762.42
EQ/Emerging Markets Equity $ 516.55 $ 1,573.09 $ 2,662.11 $ 5,537.09
EQ/Equity 500 Index $ 381.95 $ 1,177.66 $ 2,020.38 $ 4,354.24
EQ/Evergreen Omega $ 445.60 $ 1,366.75 $ 2,329.74 $ 4,936.14
EQ/FI Mid Cap $ 432.65 $ 1,328.48 $ 2,267.46 $ 4,820.69
EQ/FI Small/Mid Cap Value $ 440.20 $ 1,350.81 $ 2,303.83 $ 4,888.21
EQ/J.P. Morgan Core Bond $ 404.60 $ 1,245.23 $ 2,131.41 $ 4,565.50
EQ/Janus Large Cap Growth $ 455.40 $ 1,395.48 $ 2,376.31 $ 5,021.83
EQ/Lazard Small Cap Value $ 440.20 $ 1,350.81 $ 2,303.83 $ 4,888.21
EQ/Marsico Focus $ 453.22 $ 1,389.09 $ 2,365.98 $ 5,002.85
EQ/Mercury Basic Value Equity $ 420.79 $ 1,293.32 $ 2,210.09 $ 4,713.58
EQ/Mercury International Value $ 457.59 $ 1,401.86 $ 2,386.64 $ 5,040.77
EQ/MFS Emerging Growth Companies $ 426.18 $ 1,309.31 $ 2,236.20 $ 4,762.42
EQ/MFS Investors Trust $ 425.10 $ 1,306.11 $ 2,230.98 $ 4,752.67
- -----------------------------------------------------------------------------------------------------------------
Fee table 15
- -----------------------------------------------------------------------------------------------------------
If you surrender your contract
at the end of the applicable time period
Portfolio Name 1 year 3 years 5 years 10 years
- -----------------------------------------------------------------------------------------------------------
EQ ADVISORS TRUST:
- -----------------------------------------------------------------------------------------------------------
EQ/Money Market $ 1,190.58 $ 1,903.43 $ 2,662.80 $ 4,435.27
EQ/Putnam Growth & Income Value $ 1,224.02 $ 2,002.91 $ 2,825.76 $ 4,742.92
EQ/Putnam Voyager $ 1,232.65 $ 2,028.48 $ 2,867.46 $ 4,820.69
EQ/Small Company Index $ 1,213.23 $ 1,970.90 $ 2,773.43 $ 4,644.77
EQ/Technology $ 1,255.40 $ 2,095.48 $ 2,976.31 $ 5,021.83
- -----------------------------------------------------------------------------------------------------------
BARR ROSENBERG VARIABLE INSURANCE TRUST:
- -----------------------------------------------------------------------------------------------------------
Laudus Rosenberg VIT Value Long/Short Equity $ 1,944.34 $ 3,975.37 $ 5,813.12 $ 9,330.76
- -----------------------------------------------------------------------------------------------------------
THE UNIVERSAL INSTITUTIONAL FUNDS, INC.:
- -----------------------------------------------------------------------------------------------------------
U.S. Real Estate -- Class II $ 1,279.42 $ 2,165.51 $ 3,089.44 $ 5,227.93
- -----------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------
If you annuitize at the end of the
applicable time period
Portfolio Name 1 year 3 years 5 years 10 years
- ---------------------------------------------------------------------------------------------------------
EQ ADVISORS TRUST:
- ---------------------------------------------------------------------------------------------------------
EQ/Money Market $ 740.58 $ 1,553.43 $ 2,412.80 $ 4,785.27
EQ/Putnam Growth & Income Value $ 774.02 $ 1,652.91 $ 2,575.76 $ 5,092.92
EQ/Putnam Voyager $ 782.65 $ 1,678.48 $ 2,617.46 $ 5,170.69
EQ/Small Company Index $ 763.23 $ 1,620.90 $ 2,523.43 $ 4,994.77
EQ/Technology $ 805.40 $ 1,745.48 $ 2,726.31 $ 5,371.83
- ---------------------------------------------------------------------------------------------------------
BARR ROSENBERG VARIABLE INSURANCE TRUST:
- ---------------------------------------------------------------------------------------------------------
Laudus Rosenberg VIT Value Long/Short Equity $ 1,494.34 $ 3,625.37 $ 5,563.12 $ 9,680.76
- ---------------------------------------------------------------------------------------------------------
THE UNIVERSAL INSTITUTIONAL FUNDS, INC.:
- ---------------------------------------------------------------------------------------------------------
U.S. Real Estate -- Class II $ 829.42 $ 1,815.51 $ 2,839.44 $ 5,577.93
- ---------------------------------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------------------
If you do not surrender your contract
at the end of the applicable time period
- ----------------------------------------------------------------------------------------------------------
Portfolio Name 1 year 3 years 5 years 10 years
- ----------------------------------------------------------------------------------------------------------
EQ ADVISORS TRUST:
- ----------------------------------------------------------------------------------------------------------
EQ/Money Market $ 390.58 $ 1,203.43 $ 2,062.80 $ 4,435.27
EQ/Putnam Growth & Income Value $ 424.02 $ 1,302.91 $ 2,225.76 $ 4,742.92
EQ/Putnam Voyager $ 432.65 $ 1,328.48 $ 2,267.46 $ 4,820.69
EQ/Small Company Index $ 413.23 $ 1,270.90 $ 2,173.43 $ 4,644.77
EQ/Technology $ 455.40 $ 1,395.48 $ 2,376.31 $ 5,021.83
- ----------------------------------------------------------------------------------------------------------
BARR ROSENBERG VARIABLE INSURANCE TRUST:
- ----------------------------------------------------------------------------------------------------------
Laudus Rosenberg VIT Value Long/Short Equity $ 1,144.34 $ 3,275.37 $ 5,213.12 $ 9,330.76
- ----------------------------------------------------------------------------------------------------------
THE UNIVERSAL INSTITUTIONAL FUNDS, INC.:
- ----------------------------------------------------------------------------------------------------------
U.S. Real Estate -- Class II $ 479.42 $ 1,465.51 $ 2,489.44 $ 5,227.93
- ----------------------------------------------------------------------------------------------------------
16 Fee table
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 periods shown for each of the
variable investment options available as of December 31, 2003.
Fee table 17
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 initial contribution of $10,000 for you
to purchase a contract. You may make additional contributions of at least $500
each for NQ, QP and Rollover TSA contracts and $50 each for IRA contracts,
subject to limitations noted below. 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.
We may refuse to accept any contribution if the sum of all contributions under
all Equitable Accumulator(R) series contracts with the same annuitant would
then total more than $1,500,000. We reserve the right to limit aggregate
contributions made after the first contract year to 150% of first-year
contributions. 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. We may accept less than the minimum
initial contribution under a contract if an aggregate amount of contracts
purchased at the same time by an individual (including spouse) meets the
minimum.
- --------------------------------------------------------------------------------
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 Limitations on
Contract type issue ages Source of contributions contributions
- ------------------------------------------------------------------------------------------------------------------------------------
NQ 0 through 80 o After-tax money. o No additional contributions after attainment
of age 81 or, if later, the first contract
o Paid to us by check or transfer of contract anniversary.
value in a tax-deferred exchange under
Section 1035 of the Internal Revenue
Code.
- ------------------------------------------------------------------------------------------------------------------------------------
Rollover IRA 20 through 80 o Eligible rollover distributions from TSA o No contributions after attainment of age 81
contracts or other 403(b) arrangements, or, if later, the first contract anniversary.
qualified plans, and governmental
employer 457(b) plans. o Contributions after age 70-1/2 must be net of
required minimum distributions.
o Rollovers from another traditional indi-
vidual retirement arrangement. o Although we accept regular IRA contribu-
tions (limited to $3,000 for 2004 and
o Direct custodian-to-custodian transfers $4,000 for 2005) under Rollover IRA con-
from another traditional individual retire- tracts, we intend that this contract be used
ment arrangement. primarily for rollover and direct transfer
contributions.
o Regular IRA contributions.
o Additional catch-up contributions of up to
o Additional "catch-up" contributions. $500 can be made for the calendar year
2004 or 2005 where the owner is at least
age 50 but under age 70-1/2 at any time
during the calendar year for which the con-
tribution is made.
- ------------------------------------------------------------------------------------------------------------------------------------
18 Contract features and benefits
- ------------------------------------------------------------------------------------------------------------------------------------
Available
for annuitant Limitations on
Contract type issue ages Source of contributions contributions
- ------------------------------------------------------------------------------------------------------------------------------------
Roth Conversion 20 through 80 o Rollovers from another Roth IRA. o No additional rollover or direct transfer
IRA contributions after attainment of age 81 or,
o Conversion rollovers from a traditional if later, the first contract anniversary.
IRA.
o Conversion rollovers after age 70-1/2 must be
o Direct transfers from another Roth IRA. net of required minimum distributions for
the traditional IRA you are rolling over.
o Regular Roth IRA contributions.
o You cannot roll over funds from a traditional
o Additional catch-up contributions. IRA if your adjusted gross income is
$100,000 or more.
o Although we accept regular Roth IRA con-
tributions (limited to $3,000 for 2004 and
$4,000 for 2005) under the Roth IRA con-
tracts, we intend that this contract be used
primarily for rollover and direct transfer
contributions.
o Additional catch-up contributions of up to
$500 can be made for the calendar year
2004 or 2005 where the owner is at least
age 50 at any time during the calendar year
for which the contribution is made.
- ------------------------------------------------------------------------------------------------------------------------------------
Rollover TSA 20 through 80 o Direct transfers of pre-tax funds from o Additional rollover or direct transfer contri-
another contract or arrangement under butions may be made up to attainment of
Section 403(b) of the Internal Revenue age 81 or, if later, the first contract
Code, complying with IRS Revenue Ruling anniversary.
90-24.
o Rollover or direct transfer contributions after
o Eligible rollover distributions of pre-tax age 70--1/2 must be net of any required mini-
funds from other 403(b) plans. Subse- mum distributions.
quent contributions may also be rollovers
from qualified plans, governmental o We do not accept employer-remitted
employer 457(b) plans and traditional IRAs. contributions.
- ------------------------------------------------------------------------------------------------------------------------------------
QP 20 through 70 o Only transfer contributions from an exist- o We do not accept regular ongoing payroll
ing defined contribution qualified plan contributions.
trust.
o Only one additional transfer contribution
o The plan must be qualified under Section may be made during a contract year.
401(a) of the Internal Revenue Code.
o No additional transfer contributions after
o For 401(k) plans, transferred contributions attainment of age 71 or, if later, the first
may only include employee pre-tax contract anniversary.
contributions.
o A separate QP contract must be established
for each plan participant.
o We do not accept employer-remitted
contributions.
o We do not accept contributions from
defined benefit plans.
See Appendix II at the end of this Prospectus for a discussion of purchase considerations of QP contracts.
- ----------------------------------------------------------------------------------------------------------------------------------
See "Tax information" later in this Prospectus and in the SAI for a more
detailed discussion of sources of contributions and certain contribution
limitations. For information on when contributions are credited under your
contract see "Dates and prices at which contract events occur" in "More
information" later in this Prospectus.
Contract features and benefits 19
OWNER AND ANNUITANT REQUIREMENTS
Under NQ contracts, the annuitant can be different from 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. In general we
will not permit a contract to be owned by a minor unless it is pursuant to the
Uniform Gifts to Minors Act or the Uniform Transfers to Minors Act in your
state.
Under all IRA and Rollover TSA contracts, the owner and annuitant must be the
same person. In some cases, an IRA contract may be held in a custodial
individual retirement account for the benefit of the individual annuitant. This
option may not be available under your contract.
Under QP contracts, the owner must be the trustee of the qualified plan and the
annuitant must be the plan participant/employee. See Appendix II at the end of
this Prospectus for more information on QP contracts.
- --------------------------------------------------------------------------------
A participant is an individual who is currently, or was formerly, participating
in an eligible employer's qualified plan or TSA plan.
- --------------------------------------------------------------------------------
HOW YOU CAN MAKE YOUR CONTRIBUTIONS
Except as noted below, contributions must be 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.
For your convenience, we will accept initial and additional contributions by
wire transmittal from certain broker-dealers who have agreements with us for
this purpose, including circumstances under which such contributions are
considered received by us when your order is taken by such broker-dealers.
Additional contributions may also be made under our automatic investment
program. These methods of payment are 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 payments. 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.
- --------------------------------------------------------------------------------
Our "business day" is generally any day the New York Stock Exchange is open for
trading and generally ends at 4:00 p.m. Eastern Time. A business day does not
include a 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/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.
- --------------------------------------------------------------------------------
20 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 the Accumulator(R) Plus
contract.(SM) 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.
Equitable Life serves as the investment manager of the Portfolios of the EQ
Advisors Trust and the AXA Premier VIP Trust. 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. The
advisers for these Portfolios, listed in the chart below, are those who make
the investment decisions for each Portfolio. The chart also indicates the
investment manager for each of the other Portfolios.
- ------------------------------------------------------------------------------------------------------------------------------------
AXA Premier VIP Trust
Portfolio Name Objective Adviser(s)
- ------------------------------------------------------------------------------------------------------------------------------------
AXA AGGRESSIVE ALLOCATION Seeks long-term capital appreciation. o Equitable Life
- ------------------------------------------------------------------------------------------------------------------------------------
AXA CONSERVATIVE ALLOCATION Seeks a high level of current income. o Equitable Life
- ------------------------------------------------------------------------------------------------------------------------------------
AXA CONSERVATIVE-PLUS Seeks current income and growth of capital, with a o Equitable Life
ALLOCATION greater emphasis on current income.
- ------------------------------------------------------------------------------------------------------------------------------------
AXA MODERATE ALLOCATION Seeks long-term capital appreciation and current income. o Equitable Life
- ------------------------------------------------------------------------------------------------------------------------------------
AXA MODERATE-PLUS Seeks long-term capital appreciation and current income, o Equitable Life
ALLOCATION with a greater emphasis on capital appreciation.
- ------------------------------------------------------------------------------------------------------------------------------------
AXA PREMIER VIP AGGRESSIVE Seeks long-term growth of capital. o Alliance Capital Management L.P.
EQUITY o MFS Investment Management
o Marsico Capital Management, LLC
o Provident Investment Counsel, Inc.
- ------------------------------------------------------------------------------------------------------------------------------------
AXA PREMIER VIP CORE BOND Seeks a balance of high current income and capital o BlackRock Advisors, Inc.
appreciation, consistent with a prudent level of risk. o Pacific Investment Management
Company LLC
- ------------------------------------------------------------------------------------------------------------------------------------
AXA PREMIER VIP HEALTH CARE Seeks long-term growth of capital. o A I M Capital Management, Inc.
o RCM Capital Management LLC
o Wellington Management Company, LLP
- ------------------------------------------------------------------------------------------------------------------------------------
AXA PREMIER VIP HIGH YIELD Seeks high total return through a combination of current o Alliance Capital Management L.P.
income and capital appreciation. o Pacific Investment Management
Company LLC
- ------------------------------------------------------------------------------------------------------------------------------------
AXA PREMIER VIP Seeks long-term growth of capital. o Alliance Capital Management L.P., through
INTERNATIONAL EQUITY its Bernstein Investment Research and
Management Unit
o Bank of Ireland Asset Management
(U.S.) Limited
o Marsico Capital Management, LLC
- ------------------------------------------------------------------------------------------------------------------------------------
AXA PREMIER VIP LARGE CAP Seeks long-term growth of capital. o Alliance Capital Management L.P., through
CORE EQUITY its Bernstein Investment Research and
Management Unit
o Janus Capital Management LLC
o Thornburg Investment Management, Inc.
- ------------------------------------------------------------------------------------------------------------------------------------
Contract features and benefits 21
Portfolios of the Trusts (continued)
- -------------------------------------------------------------------------------------------------------------------------------
AXA Premier VIP Trust
Portfolio Name Objective Adviser(s)
- -------------------------------------------------------------------------------------------------------------------------------
AXA PREMIER VIP LARGE CAP Seeks long-term growth of capital. o Alliance Capital Management L.P.
GROWTH
o RCM Capital Management LLC
o TCW Investment Management Company
- -------------------------------------------------------------------------------------------------------------------------------
AXA PREMIER VIP LARGE CAP Seeks long-term growth of capital. o Alliance Capital Management L.P.
VALUE
o Institutional Capital Corporation
o MFS Investment Management
- -------------------------------------------------------------------------------------------------------------------------------
AXA PREMIER VIP SMALL/MID Seeks long-term growth of capital. o Alliance Capital Management L.P.
CAP GROWTH
o Franklin Advisers, Inc.
o Provident Investment Counsel, Inc.
- -------------------------------------------------------------------------------------------------------------------------------
AXA PREMIER VIP SMALL/MID Seeks long-term growth of capital. o AXA Rosenberg Investment Management LLC
CAP VALUE
o TCW Investment Management Company
o Wellington Management Company, LLP
- -------------------------------------------------------------------------------------------------------------------------------
AXA PREMIER VIP TECHNOLOGY Seeks long-term growth of capital. o Firsthand Capital Management, Inc.
o RCM Capital Management LLC
o Wellington Management Company, LLP
- -------------------------------------------------------------------------------------------------------------------------------
EQ Advisors Trust
Portfolio Name Objective Adviser(s)
- -------------------------------------------------------------------------------------------------------------------------------
EQ/ALLIANCE COMMON STOCK Seeks to achieve long-term growth of capital. o Alliance Capital Management L.P.
- -------------------------------------------------------------------------------------------------------------------------------
EQ/ALLIANCE GROWTH AND Seeks to provide a high total return. o Alliance Capital Management L.P.
INCOME
- -------------------------------------------------------------------------------------------------------------------------------
EQ/ALLIANCE INTERMEDIATE Seeks to achieve high current income consistent with o Alliance Capital Management L.P.
GOVERNMENT SECURITIES relative stability of principal.
- -------------------------------------------------------------------------------------------------------------------------------
EQ/ALLIANCE INTERNATIONAL Seeks to achieve long-term growth of capital. o Alliance Capital Management L.P.
- -------------------------------------------------------------------------------------------------------------------------------
EQ/ALLIANCE PREMIER GROWTH Seeks to achieve long-term growth of capital. o Alliance Capital Management L.P.
- -------------------------------------------------------------------------------------------------------------------------------
EQ/ALLIANCE QUALITY BOND Seeks to achieve high current income consistent with o Alliance Capital Management L.P.
moderate risk to capital.
- -------------------------------------------------------------------------------------------------------------------------------
EQ/ALLIANCE SMALL CAP Seeks to achieve long-term growth of capital. o Alliance Capital Management L.P.
GROWTH
- -------------------------------------------------------------------------------------------------------------------------------
EQ/BERNSTEIN DIVERSIFIED VALUE Seeks capital appreciation. o Alliance Capital Management L.P.,
through its Bernstein Investment Research
and Management Unit
- -------------------------------------------------------------------------------------------------------------------------------
EQ/CALVERT SOCIALLY Seeks long-term capital appreciation. o Calvert Asset Management Company, Inc.
RESPONSIBLE and Brown Capital Management, Inc.
- -------------------------------------------------------------------------------------------------------------------------------
EQ/CAPITAL GUARDIAN To achieve long-term growth of capital. o Capital Guardian Trust Company
INTERNATIONAL
- -------------------------------------------------------------------------------------------------------------------------------
EQ/CAPITAL GUARDIAN Seeks to achieve long-term growth of capital. o Capital Guardian Trust Company
RESEARCH
- -------------------------------------------------------------------------------------------------------------------------------
EQ/CAPITAL GUARDIAN U.S. Seeks to achieve long-term growth of capital. o Capital Guardian Trust Company
EQUITY
- -------------------------------------------------------------------------------------------------------------------------------
22 Contract features and benefits
Portfolios of the Trusts (continued)
- ------------------------------------------------------------------------------------------------------------------------------------
EQ Advisors Trust
Portfolio Name Objective Adviser(s)
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/EMERGING MARKETS EQUITY Seeks long-term capital appreciation. o Morgan Stanley Investment
Management, Inc.
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/EQUITY 500 INDEX Seeks a total return before expenses that approximates o 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. o Evergreen Investment Management
Company, LLC
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/FI MID CAP Seeks long-term growth of capital. o Fidelity Management & Research Company
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/FI SMALL/MID CAP VALUE Seeks long-term capital appreciation. o Fidelity Management & Research Company
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/J.P. MORGAN CORE BOND Seeks to provide a high total return consistent with mod- o J.P. Morgan Investment Management Inc.
erate risk to capital and maintenance of liquidity.
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/JANUS LARGE CAP GROWTH Seeks long-term growth of capital. o Janus Capital Management LLC
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/LAZARD SMALL CAP VALUE Seeks capital appreciation. o Lazard Asset Management, LLC
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/MARSICO FOCUS Seeks long-term growth of capital. o Marsico Capital Management, LLC
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/MERCURY BASIC VALUE Seeks capital appreciation and secondarily, income. o Mercury Advisors
EQUITY
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/MERCURY INTERNATIONAL Seeks capital appreciation. o Merrill Lynch Investment Managers Interna-
VALUE tional Limited
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/MFS EMERGING GROWTH Seeks to provide long-term capital growth. o MFS Investment Management
COMPANIES
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/MFS INVESTORS TRUST Seeks long-term growth of capital with secondary objec- o MFS Investment Management
tive to seek reasonable current income.
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/MONEY MARKET Seeks to obtain a high level of current income, preserve o Alliance Capital Management L.P.
its assets and maintain liquidity.
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/PUTNAM GROWTH & INCOME Seeks capital growth. Current income is a secondary o Putnam Investment Management, LLC
VALUE objective.
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/PUTNAM VOYAGER Seeks long-term growth of capital and any increased o Putnam Investment Management, LLC
income that results from this growth.
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/SMALL COMPANY INDEX Seeks to replicate as closely as possible (before the o Alliance Capital Management L.P.
deduction of portfolio expenses) the total return of the
Russell 2000 Index.
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/TECHNOLOGY Seeks to achieve long-term growth of capital. o Firsthand Capital Management, Inc.
o RCM Capital Management LLC
o Wellington Management Company, LLP
- ------------------------------------------------------------------------------------------------------------------------------------
Barr Rosenberg Variable
Insurance Trust
Portfolio Name Objective Investment Manager/Adviser
- ------------------------------------------------------------------------------------------------------------------------------------
LAUDUS ROSENBERG VIT VALUE Seeks to increase the value of your investment in bull o Charles Schwab Investment Management,
LONG/SHORT EQUITY markets and bear markets through strategies that are Inc.
designed to have limited exposure to general equity o AXA Rosenberg Investment Management LLC
market risk.
- ------------------------------------------------------------------------------------------------------------------------------------
Contract features and benefits 23
Portfolios of the Trusts (continued)
- -------------------------------------------------------------------------------------------------------------------
The Universal Institutional
Funds, Inc.
Portfolio Name Objective Investment Manager
- -------------------------------------------------------------------------------------------------------------------
U.S. REAL ESTATE -- Class II(1) Seeks to provide above average current income and long- o Van Kampen(2)
term capital appreciation by investing primarily in equity
securities of companies in the U.S. real estate industry,
including real estate investment trusts.
- -------------------------------------------------------------------------------------------------------------------
(1) 'Class II' Shares are defined in the current underlying Trust prospectus.
(2) Van Kampen is the name under which Morgan Stanley Investment Management Inc.
does business in certain situations.
You should consider the investment objectives, risks and charges and expenses
of the Portfolios carefully before investing. The prospectuses for the Trusts
contain this and other important information about the Portfolios. The
prospectuses should be read carefully before investing. In order to obtain
copies of Trust prospectuses that do not accompany this Prospectus, you may
call one of our customer service representatives at 1-800-789-7771.
24 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. We reserve the right to change these procedures.
All interest rates are effective annual rates, but before deduction of annual
administrative charges (if permitted in your state) or any withdrawal charges.
The minimum yearly guaranteed interest rate is 3% for 2004. 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.
See "Transferring your money among the investment options" later in this
Prospectus for restrictions on transfers from the Guaranteed interest option.
FIXED MATURITY OPTIONS
We offer fixed maturity options with maturity dates ranging from one to ten
years. We will not accept allocations to a fixed maturity option if on the date
the contribution or transfer is to be applied the rate to maturity is 3%. This
means that at points in time there may be no fixed maturity options available.
You can allocate your contributions to one or more of these fixed maturity
options, however, you may not have more than 12 different maturities running
during any contract year. These amounts become part of a non-unitized separate
account. 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 all states. Check with your financial professional
to see if fixed maturity options are available in your state.
- --------------------------------------------------------------------------------
Fixed maturity options generally 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.
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 amounts 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 offer fixed maturity options with
maturity dates ranging from one to ten years. Not all of these fixed maturity
options will be available for annuitant ages 76 and older. See "Allocating your
contributions" below.
Each new contribution is applied to a new fixed maturity option. When you apply
for an Accumulator(R) Plus(SM) contract, a 60-day rate lock-in will apply from
the date the application is signed. Any contributions received and designated
for a fixed maturity option during this period will receive the then current
fixed maturity option rate or the rate that was in effect on the date that the
application was signed, whichever is greater. There is no rate lock available
for subsequent contributions to the contract after 60 days, transfers from the
variable investment options or the guaranteed interest option into a fixed
maturity option or transfers from one fixed maturity option to another.
YOUR CHOICES AT THE MATURITY DATE. We will notify you between 15 and 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 in "Allocating your
contributions," below would apply:
(a) transfer the maturity value into another available fixed maturity option,
any of the variable investment options or the guaranteed interest option; 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
shortest available maturity option beginning on that date. As of February 13,
2004, the next available maturity date was February 13, 2012. If no fixed
maturity options are available, we will transfer your maturity value to the
EQ/Money Market option.
MARKET VALUE ADJUSTMENT. If you make any withdrawals (including transfers,
surrender 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 in effect at that time for new fixed maturity options
(adjusted to reflect a similar maturity date), 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
Contract features and benefits 25
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.
ALLOCATING YOUR CONTRIBUTIONS
You may choose from among three ways to allocate your contributions under your
contract: self-directed, principal assurance, or dollar cost averaging.
SELF-DIRECTED ALLOCATION
You may allocate your contributions to one or more, or all, of the variable
investment options, guaranteed interest option and fixed maturity options.
Allocations must be in whole percentages and you may change your allocations at
any time. No more than 25% of any contribution may be allocated to the
guaranteed interest option.The total of your allocations into all available
investment options must equal 100%. If the annuitant is age 76-80, you may
allocate contributions to fixed maturity options with maturities of seven years
or less. If the annuitant is age 81 or older, you may allocate contributions to
fixed maturity options with maturities of five years or less. Also you may not
allocate amounts to fixed maturity options with maturity dates that are later
than the date annuity payments are to begin.
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 (plus any applicable credit) on the fixed
maturity option's maturity date. The maturity date you select generally may not
be later than 10 years, or earlier than 7 years from your contract date. If you
make any withdrawals or transfers from the fixed maturity option before the
option's maturity date, the amount in the fixed maturity option will be
adjusted and may no longer grow to equal your initial contribution under the
principal insurance allocation. Principal assurance will not be available if
none of those maturity dates is available. You allocate the rest of your
contribution to the investment options and guaranteed interest option however
you choose.
For example, if your initial contribution is $10,000 and on February 13, 2004
you chose the fixed maturity option with a maturity date of February 13, 2014,
since the rate to maturity was 3.73% on February 13, 2004, we would have
allocated $7,209 to that fixed maturity option and the balance to your choice
of variable investment options and guaranteed interest option. On the maturity
date your value in the fixed maturity option would be $10,400.
The principal assurance allocation is only available for annuitants ages 80 or
younger when the contract is issued. If the annuitant is age 76-80, your
principal assurance allocation is limited to the seven year fixed maturity
option only. If you anticipate taking required minimum distributions, you
should consider whether your values in the variable investment options and
guaranteed interest option are sufficient to meet your required minimum
distributions. See "Tax information" later in this Prospectus and in the SAI.
Please check with your financial professional to see if the principal assurance
allocation feature is available in your state.
DOLLAR COST AVERAGING
We offer a variety of dollar cost averaging programs. You may only participate
in one program at a time. Each program 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. You may not make
transfers to the fixed maturity options.
- --------------------------------------------------------------------------------
Units measure your value in each variable investment option.
- --------------------------------------------------------------------------------
GENERAL DOLLAR COST AVERAGING PROGRAM. If your value in the EQ/Money Market
option is at least $5,000, you may choose, at any time, to have a specified
dollar amount or percentage of your value transferred from that option to the
other variable investment options. You can select to have transfers made on a
monthly, quarterly or annual basis. The transfer date will be the same calendar
day of the month as the contract date, but not later than the 28th day of the
month. You can also specify the number of transfers or instruct us to continue
making the transfers until all amounts in the EQ/Money Market option have been
transferred out.
The minimum amount that we will transfer each time is $250. The maximum amount
we will transfer is equal to your value in the EQ/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/Money Market option is equal to
or less than the amount you have elected to have transferred, the entire amount
will be transferred. The dollar cost averaging program will then end. You may
change the transfer amount once each contract year or cancel this program at
any time.
INVESTMENT SIMPLIFIER
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. Transfers may be made on a monthly,
quarterly or annual basis. You can specify the number of transfers or instruct
us to continue to make 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
26 Contract features and benefits
election form at our processing office. The transfer date will be the same
calendar day of the month as the contract date but not later than the 28th day
of the month. The minimum transfer amount is $50. The fixed-dollar option is
subject to the guaranteed interest option transfer limitations described under
"Transferring your account value" in "Transferring your money among investment
options" later in this Prospectus. While the program is running, any transfer
that exceeds those limitations will cause the program to end for that contract
year. You will be notified. You must send in a request form to resume the
program in the next or subsequent contract years.
If, on any transfer date, your value in the guaranteed interest option is equal
to or less than the amount you have elected to have transferred, the entire
amount will be transferred, and the program will end. You may change the
transfer amount once each contract year or cancel this program at any time.
Interest sweep option. Under this option, you may elect to have monthly
transfers from amounts in the guaranteed interest option into the variable
investment options of your choice. The transfer date will be the last business
day of the month. 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. We will automatically cancel the interest sweep
program if the amount in the guaranteed interest option is less than $7,500 on
the last day of the month for two months in a row. For the interest sweep
option, 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.
----------------
You may not participate in any dollar cost averaging program if you are
participating in the rebalancing program. See "Transferring your money among
investment options" later in this Prospectus.
CREDITS
A credit will also be allocated to your account value at the same time that we
allocate your contribution. Credits are allocated to the same investment
options based on the same percentages used to allocate your contributions.
The amount of the credit will be 4%, 5% or 6% of each contribution based on the
following breakpoints and rules:
- ------------------------------------------------------------------
Credit percentage
First year total contributions* applied to
Breakpoints contributions
- ------------------------------------------------------------------
Less than $250,000 4%
- ------------------------------------------------------------------
$250,000-$999,999.99 5%
- ------------------------------------------------------------------
$1 million or more 6%
- ------------------------------------------------------------------
- ----------
* First year total contributions means your total contributions made in the
first contract year.
The percentage of the credit is based on your first year total contributions.
This credit percentage will be credited to each contribution made in the first
year (after adjustment as described below), as well as the second and later
contract years. Although the credit, as adjusted at the end of the first
contract year, will be based upon first year total contributions, the following
rules affect the percentage with which contributions made in the first contract
year are credited during the first contract year:
o Indication of intent: If you indicate in the application at the time you
purchase your contract an intention to make additional contributions to meet
one of the breakpoints (the "Expected First Year Contribution Amount") and
your initial contribution is at least 50% of the Expected First Year
Contribution Amount, your credit percentage will be as follows:
o For any contributions resulting in total contributions to date less than
or equal to your Expected First Year Contribution Amount, the credit
percentage will be the percentage that applies to the Expected First
Year Contribution Amount based on the table above.
o For any subsequent contribution that results in your total contributions
to date exceeding your Expected First Year Contribution Amount, such
that the credit percentage should have been higher, we will increase the
credit percentage applied to that contribution, as well as any prior or
subsequent contributions made in the first contract year, accordingly.
o For contracts issued in New York, the "Indication of intent" approach to
first year contributions is not available.
o No indication of intent:
o For your initial contribution we will apply the credit percentage based
upon the above table.
o For any subsequent contribution that results in a higher applicable
credit percentage (based on total contributions to date), we will
increase the credit percentage applied to that contribution, as well as
any prior or subsequent contributions made in the first contract year,
accordingly.
We may recover all of the credit or a portion of the credit in the following
situations:
o If you exercise your right to cancel the contract, we will recover the
entire credit made to your contract (see "Your right to cancel within a
certain number of days" later in this Prospectus)(1)
- ---------
(1) The amount we return to you upon exercise of this right to cancel will not
include any credit or the amount of charges deducted prior to cancellation
but will reflect, except in states where we are required to return the
amount of your contributions, any investment gain or loss in the variable
investment options associated with your contributions and with the full
amount of the credit.
Contract features and benefits 27
o If you start receiving annuity payments within three years of making any
contribution, we will recover the credit that applies to any contribution
made within the prior three years.
o If at the end of the first contract year your year total contributions were
lower than your Expected First Year Contribution Amount such that the credit
applied should have been lower, we will recover any Excess Credit. The
Excess Credit is equal to the difference between the credit that was
actually applied based on your Expected First Year Contribution Amount (as
applicable) and the credit that should have been applied based on first year
total contributions.
We will recover any credit on a pro rata basis from the value in your variable
investment options and 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
the withdrawal will be withdrawn from the fixed maturity options in order of
the earliest maturing date(s). A market value adjustment may apply to
withdrawals from the fixed maturity options.
We do not consider credits to be contributions for purposes of any discussion
in this Prospectus. Credits are also not considered to be part of your
investment in the contract for tax purposes.
We use a portion of the mortality and expense risks charge and withdrawal
charge to help recover our cost of providing the credit. See "Charges and
expenses" later in this Prospectus. The charge associated with the credit may,
over time, exceed the sum of the credit and any related earnings. You should
consider this possibility before purchasing the contract.
YOUR BENEFIT BASE
A benefit base is used to calculate the guaranteed minimum income benefit and
any death benefit, as described in this section. Your benefit base is not an
account value or a cash value. See also "Our Living Benefit option" and
"Guaranteed minimum death benefit" below.
STANDARD DEATH BENEFIT. Your benefit base is equal to:
o your initial contribution and any additional contributions to the contract;
plus
o any applicable credit; less
o a deduction that reflects any withdrawals you make. (See "How withdrawals
affect your guaranteed minimum income benefit and guaranteed minimum death
benefit" in "Accessing your money" later in this Prospectus.)
6% ROLL UP TO AGE 85 ENHANCED DEATH BENEFIT. Your benefit base is equal to:
o your initial contribution and any additional contributions to the contract;
plus
o any applicable credit; plus
o daily interest; less
o a deduction that reflects any withdrawals you make (the amount of the
deduction is described under "How withdrawals affect your guaranteed minimum
income benefit and guaranteed minimum death benefit" in "Accessing your
money" later in this Prospectus.)
The effective annual interest rate credited to this benefit base is:
o 6% (4% in Washington for the enhanced death benefit only) with respect to
the variable investment options (other than EQ/Alliance Intermediate
Government Securities and EQ/Money Market); and
o 3% with respect to the EQ/Alliance Intermediate Government Securities and
EQ/Money Market, the fixed maturity options, the guaranteed interest option
and the loan reserve account under Rollover TSA (if applicable).
No interest is credited to the benefit base after the contract anniversary
following the annuitant's 85th birthday.
ANNUAL RATCHET TO AGE 85 ENHANCED DEATH BENEFIT OPTION. Your benefit base is
equal to the greater of:
o your initial contribution to the contract and any additional contributions;
plus
o any applicable credit;
or
o your highest account value on any contract anniversary up to the contract
anniversary following the annuitant's 85th birthday, plus any contribution
(and any applicable credit) made since the most recent contract anniversary;
each less
o a deduction that reflects any withdrawals you make (the amount of the
deduction is described under "How withdrawals affect your guaranteed minimum
income benefit and guaranteed minimum death benefit" in "Accessing your
money" later in this Prospectus).
GREATER OF THE 6% ROLL UP TO AGE 85 OR THE ANNUAL RATCHET TO AGE 85 ENHANCED
DEATH BENEFIT AND THE GUARANTEED MINIMUM INCOME BENEFIT. Your benefit base is
equal to the greater of the benefit base computed for the 6% Roll up to age 85
or the benefit base computed for Annual ratchet to age 85, as described
immediately above, on each contract anniversary. For the guaranteed minimum
income benefit, the benefit base is reduced by any applicable withdrawal charge
remaining when the option is exercised.
ANNUITY PURCHASE FACTORS
Annuity purchase factors are the factors applied to determine your periodic
payments under the guaranteed minimum income benefit and annuity payout
options. The guaranteed minimum income benefit is discussed under "Our Living
Benefit option" below and annuity payout options are discussed under "Your
annuity payout options" in "Accessing your money" later in this Prospectus. The
guaranteed annuity purchase factors are those factors specified in your
contract. The current annuity purchase factors are those factors that are in
effect at any given time. Annuity purchase factors are based on interest rates,
mortality tables, frequency of payments, the form of annuity benefit, and the
annuitant's (and any joint annuitant's) age and sex in certain instances.
28 Contract features and benefits
OUR LIVING BENEFIT OPTION
The Living Benefit option offers you a guaranteed minimum income benefit. The
Living Benefit is available if the annuitant is age 20 through 75 at the time
the contract is issued. There is an additional charge for the Living Benefit
which is described under "Living Benefit charge" in "Charges and expenses"
later in this Prospectus. Please ask your financial professional if the Living
Benefit is available in your state. If you are purchasing this contract to fund
a Charitable Remainder Trust, the guaranteed minimum income benefit is
generally not available. Subject to our rules, the Living Benefit may be
available for certain split-funded Charitable Remainder Trusts.
The guaranteed minimum income benefit guarantees you a minimum amount of fixed
income under your choice of a life annuity fixed payout option or an Income
Manager level payment life with a period certain payout option subject to state
availability. You choose which of these payout options you want and whether you
want the option to be paid on a single or joint life basis at the time you
exercise your guaranteed minimum income benefit. The maximum period certain
available under the Income Manager payout option is 10 years. This period may
be shorter, depending on the annuitant's age as follows:
- -------------------------------------------
Level payments
- -------------------------------------------
Period certain years
Annuitant's age at ----------------------
exercise IRAs NQ
- -------------------------------------------
60 to 75 10 10
76 9 10
77 8 10
78 7 10
79 7 10
80 7 10
81 7 9
82 7 8
83 7 7
84 6 6
85 5 5
- -------------------------------------------
We may also make other forms of payout options available. For a description of
payout options, see "Your annuity payout options" in "Accessing your money"
later in this Prospectus.
- --------------------------------------------------------------------------------
The guaranteed minimum income benefit, which is also known as a living benefit,
should be regarded as a safety net only. It provides income protection if you
elect an income payout while the annuitant is alive.
- --------------------------------------------------------------------------------
When you exercise the guaranteed minimum income benefit, the annual lifetime
income that you will receive will be the greater of (i) your guaranteed minimum
income benefit which is calculated by applying your guaranteed minimum income
benefit base less any outstanding loan plus accrued interest (applies to
Rollover TSA only) at guaranteed annuity purchase factors, or (ii) the income
provided by applying your actual account value at our then current annuity
purchase factors. The benefit base is applied only to the Living Benefit
guaranteed annuity purchase factors in your contract and not to any other
guaranteed or current annuity purchase rates. The amount of income you receive
will be determined when we receive your request to exercise the benefit.
When you elect to receive annual lifetime income, your contract will terminate
and you will receive a new contract for the annuity payout option. For a
discussion of when your payments will begin and end, see "Exercise of
guaranteed minimum income benefit" below.
Before you elect the Living Benefit, you should consider the fact that the
guaranteed minimum income benefit provides a form of insurance and is based on
conservative actuarial factors.
The guaranteed annuity purchase factors we use to determine your Income Manager
benefit under the Living Benefit are more conservative than the guaranteed
annuity purchase factors we use for the Income Manager payout annuity option.
This means that, assuming the same amount is applied to purchase the benefit
and that we use guaranteed annuity purchase factors to compute the benefit,
each periodic payment under the Living Benefit Income Manager will be smaller
than each periodic payment under the Income Manager payout annuity option.
Therefore, even if your account value is less than your benefit base, you may
generate more income by applying your account value to current annuity purchase
factors. We will make this comparison for you when the need arises.
ILLUSTRATIONS OF GUARANTEED MINIMUM INCOME BENEFIT. Assuming the 6% Roll up to
age 85 benefit base, the table below illustrates the guaranteed minimum income
benefit amounts per $100,000 of initial contribution, for a male annuitant age
60 (at issue) on the contract date anniversaries indicated, who has elected the
life annuity fixed payout option, using the guaranteed annuity purchase factors
as of the date of this Prospectus, assuming no additional contributions,
withdrawals or loans under Rollover TSA contracts, and assuming there were no
allocations to the EQ/Alliance Intermediate Government Securities, EQ/Money
Market, the guaranteed interest option, the fixed maturity options or the loan
reserve account under Rollover TSA contracts.
- --------------------------------------------------------
guaranteed minimum
Contract date income benefit -- annual
anniversary at exercise income payable for life
- --------------------------------------------------------
10 $12,367
15 $19,341
- --------------------------------------------------------
EXERCISE OF GUARANTEED MINIMUM INCOME BENEFIT. On each contract date
anniversary that you are eligible to exercise the guaranteed minimum income
benefit, we will send you an eligibility notice illustrating how much income
could be provided as of the contract date anniversary. You must notify us
within 30 days following the contract date anniversary if you want to exercise
the guaranteed minimum income benefit. You must return your contract to us
along with any required information in order to exercise this benefit. You will
begin receiving annual payments one year after the annuity payout contract is
issued. You may choose to take a withdrawal prior to exercising the guaranteed
minimum income benefit, which will reduce your payments. You may not partially
exercise this benefit. See "Accessing your money" under "Withdrawing your
account value" later in this Prospectus. Payments end with the last payment
before the annuitant's (or joint annuitant's, if applicable) death, or if
later, the end of the period certain (where the payout option chosen includes a
period certain).
Contract features and benefits 29
You will be eligible to exercise the guaranteed minimum income benefit as
follows:
o If the annuitant was at least age 20 and no older than age 44 when the
contract was issued, you are eligible to exercise the guaranteed minimum
income benefit within 30 days following each contract date anniversary
beginning with the 15th contract date anniversary.
o If the annuitant was at least age 45 and no older than age 49 when the
contract was issued, you are eligible to exercise the guaranteed minimum
income benefit within 30 days following each contract date anniversary after
the annuitant is age 60.
o If the annuitant was at least age 50 and no older than age 75 when the
contract was issued, you are eligible to exercise the guaranteed minimum
income benefit within 30 days following each contract date anniversary
beginning with the 10th contract date anniversary.
Please note:
(i) the latest date you may exercise the guaranteed minimum income benefit is
the contract date anniversary following the annuitant's 85th birthday;
(ii) if the annuitant was age 75 when the contract was issued, the only time you
may exercise the guaranteed minimum income benefit is within 30 days
following the first contract date anniversary that it becomes available;
(iii) if the annuitant was older than age 60 at the time an IRA, QP or Rollover
TSA contract was issued, the Living Benefit may not be an appropriate
feature because the minimum distributions required by tax law generally must
begin before the guaranteed minimum income benefit can be exercised; and
(iv) For QP and Rollover TSA contracts, if you are eligible to exercise your
guaranteed minimum income benefit, we will first roll over amounts in such
contract to a Rollover IRA contract. You will be the owner of the Rollover
IRA contract.
(v) For a successor owner/annuitant, the earliest exercise date is based on the
original contract issue date and the age of the successor owner/annuitant as
of the Processing Date successor owner/annuitant takes effect.
Please see both "Termination of your contract" in "Determining your contract
value" and "How withdrawals affect your guaranteed minimum income benefit and
guaranteed minimum death benefit" in "Accessing your money" later in this
Prospectus for more information on these guaranteed benefits.
GUARANTEED MINIMUM DEATH BENEFIT
Your contract provides a death benefit. If you do not elect one of the enhanced
death benefits 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 standard death benefit, whichever provides the highest
amount. The standard death benefit is equal to your total contributions, plus
any applicable credit (adjusted for any withdrawals and any withdrawal charges,
and any taxes that apply).
If you elect one of the guaranteed death benefits, the death benefit is equal
to your account value 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 your elected guaranteed
death benefit on the date of the annuitant's death (adjusted for any subsequent
withdrawals, withdrawal charges and taxes that apply) whichever provides the
highest amount.
OPTIONAL ENHANCED DEATH BENEFITS APPLICABLE FOR ANNUITANT AGES 0 THROUGH 80 AT
ISSUE OF NQ CONTRACTS; 20 THROUGH 80 AT ISSUE OF ROLLOVER IRA, ROTH CONVERSION
IRA AND ROLLOVER TSA CONTRACTS; AND 20 THROUGH 70 AT ISSUE OF QP CONTRACTS.
Subject to state availability, you may elect one of the following enhanced
death benefits:
6% ROLL UP TO AGE 85.
ANNUAL RATCHET TO AGE 85.
THE GREATER OF THE 6% ROLL UP TO AGE 85 OR THE ANNUAL RATCHET TO AGE 85.
Each enhanced death benefit is equal to its corresponding benefit base
described earlier in "Your benefit base." Once you have made your enhanced
death benefit election, you may not change it.
----------------------------------
In New York only the Standard death benefit and the Annual ratchet to age 85
enhanced death benefit are available.
Please see both "Termination of your contract" in "Determining your contract
value" and "How withdrawals affect your guaranteed minimum income benefit and
guaranteed minimum death benefit" in "Accessing your money" later in this
Prospectus for more information on these guaranteed benefits.
See Appendix IV at the end of this Prospectus for an example of how we
calculate an enhanced minimum death benefit.
PROTECTION PLUS
Subject to state and contract availability, if you are purchasing a contract,
under which the Protection Plus feature is available, you may elect the
Protection Plus death benefit at the time you purchase your contract.
Protection Plus provides an additional death benefit as described below. See
the appropriate part of "Tax information" later in this Prospectus for the
potential tax consequences of electing to purchase the Protection Plus feature
in an NQ, IRA or Rollover TSA contract.
If the annuitant is 70 or younger when we issue your contract (or if the
successor owner/annuitant is 70 or younger when he or she becomes the successor
owner/annuitant), the death benefit will be:
the greater of:
o the account value or
o any applicable death benefit
30 Contract features and benefits
Increased by:
o such death benefit less total net contributions, multiplied by 40%
For purposes of calculating your Protection Plus benefit, the following
applies: (i) "Net contributions" are the total contributions made (or, if
applicable, the total amount that would otherwise have been paid as a death
benefit had the successor owner/annuitant election not been made plus any
subsequent contributions) reduced on a pro rata basis to reflect withdrawals
(including surrender charges and loans). Credit amounts are not included in
"net contributions." Reduction on a pro rata basis means that we calculate the
percentage of the current account value that is being withdrawn and we reduce
net contributions by that percentage. For example, if the account value is
$30,000 and you withdraw $12,000, you have withdrawn 40% of your account value.
If contributions aggregated $40,000 before the withdrawal, it would be reduced
by $16,000 ($40,000 x .40) and net contributions after the withdrawal would be
$24,000 ($40,000-$16,000); (ii) "Death benefit" is equal to the greater of the
account value as of the date we receive satisfactory proof of death or any
applicable guaranteed minimum death benefit as of the date of death.
If the annuitant is age 71 through 79 when we issue your contract (or if the
successor owner/annuitant is between the ages of 71 and 79 when he or she
becomes the successor owner/annuitant and Protection Plus had been elected at
issue), the death benefit will be:
the greater of:
o the account value or
o any applicable death benefit
Increased by:
o such death benefit (as described above) less total net contributions,
multiplied by 25%
The value of the Protection Plus death benefit is frozen on the first contract
date anniversary after the annuitant turns age 80, except that the benefit will
be reduced for withdrawals on a pro rata basis. Protection Plus must be elected
when the contract is first issued; neither the owner nor the successor
owner/annuitant can add it subsequently. Ask your financial professional if
this feature is available in your state.
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, with a signed letter of instruction electing this right, to our
processing office within 10 days after you receive it. If state law requires,
this "free look" period may be longer.
Generally, your refund will equal your account value under the contract on the
day we receive notification to cancel the contract and will reflect (i) any
investment gain or loss in the variable investment options (less the daily
charges we deduct), (ii) any guaranteed interest in the guaranteed interest
option, and (iii) any positive or negative market value adjustments in the
fixed maturity options through the date we receive your contract. Some states
require that we refund the full amount of your contribution (not reflecting
(i), (ii) or (iii) above). For any IRA contracts returned to us within seven
days after you receive it, we are required to refund the full amount of your
contribution. Please note that you will forfeit the credit by exercising this
right of cancellation.
We may require that you wait six months before you may 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 and in the SAI for
possible consequences of cancelling your contract.
In addition to the cancellation right described above, if you fully convert an
existing traditional IRA contract to a Roth Conversion IRA contract, you may
cancel your Roth Conversion IRA contract and return to a Rollover IRA contract.
Our processing office or your financial professional can provide you with the
cancellation instructions.
Contract features and benefits 31
2. Determining your contract's value
- --------------------------------------------------------------------------------
YOUR ACCOUNT VALUE AND CASH VALUE
Your "account value" is the total value of the values you have in: (i) the
variable investment options; (ii) the guaranteed interest account; (iii) market
adjusted amounts in the fixed maturity options; and (iv) the loan reserve
account (applies for Rollover TSA contracts only).
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) the
total amount or a pro rata portion of the annual administrative charge, as well
as optional benefit charges; (ii) any applicable withdrawal charge; and (iii)
the amount of any outstanding loan plus accrued interest (applicable to
Rollover TSA contracts only). Please see "Surrendering 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.
The unit value for each variable investment option depends on the investment
performance of that option, less daily charges for:
(i) mortality and expense risks;
(ii) administrative, and
(iii) distribution charges.
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 plus the credit;
(ii) decreased to reflect a withdrawal (plus applicable withdrawal charges);
(iii) increased to reflect transfer into, or decreased to reflect transfer
out of a variable investment option; or
(iv) increased or decreased to reflect a transfer of your loan amount from
or to the loan reserve account under a Rollover TSA contract.
In addition, when we deduct the enhanced death benefit, Living Benefit and/or
Protection Plus benefit charges, the number of units credited to your contract
will be reduced. Your units are also reduced when we deduct the annual
administrative charge. A description of how unit values are calculated is found
in the SAI.
YOUR CONTRACT'S VALUE IN THE GUARANTEED
INTEREST ACCOUNT
Your value in the guaranteed interest account at any time will equal: your
contributions and transfers to that option, plus interest, minus withdrawals
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, provided
there have been no withdrawals or transfers.
TERMINATION OF YOUR CONTRACT
Your contract will terminate without value if your account value is
insufficient to pay any applicable charges when due. Your account value could
become insufficient due to withdrawals and/or poor market performance. Upon
such termination, you will lose any applicable guaranteed benefits.
32 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 variable investment options,
subject to the following:
o You may not transfer to a fixed maturity option that has a rate to maturity
of 3% or less.
o If the annuitant is age 76-80, you must limit your transfers to fixed
maturity options with maturities of seven years or less. If the annuitant is
age 81 or older, you must limit your transfers to fixed maturity options of
five years or less. As of February 13, 2003, maturities of less than eight
years were not available. Also, the maturity dates may be no 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 During the first contract year, transfers into the guaranteed interest
option are not permitted.
o After the first contract year, a transfer into the guaranteed interest
option will not be permitted if such transfer would result in more than 25%
of the annuity account value being allocated to the guaranteed interest
option, based on the annuity account value as of the previous business day.
In addition, we reserve the right to restrict transfers among variable
investment options as described in your contract, including limitations on the
number, frequency or dollar amount of transfers.
The maximum amount that may be transferred from the guaranteed interest option
to any investment option (including amounts transferred pursuant to the
fixed-dollar option and interest sweep option dollar cost averaging programs
described under "Allocating your contributions" in "Contract features and
benefits" earlier in this Prospectus) in any contract year is the greatest of:
(a) 25% of the amount you have in the guaranteed interest option on the last
day of the prior contract year; or,
(b) the total of all amounts transferred at your request from the guaranteed
interest option to any of the Investment options in the prior contract
year; or,
(c) 25% of amounts transferred or allocated to the guaranteed interest option
during the current contract year.
From time to time, we may remove the restrictions regarding transferring
amounts out of the guaranteed interest option. If we do so, we will tell you.
We will also tell you at least 45 days in advance of the day we intend to
reimpose the transfer restrictions. When we reimpose the transfer restrictions,
if any dollar cost averaging transfer out of the guaranteed interest option
causes a violation of the 25% outbound restriction, that dollar cost averaging
program will be terminated for the current contract year. A new dollar cost
averaging program can be started in the next or subsequent contract years.
You may request a transfer in writing, by telephone using TOPS or through
EQAccess. You must send in all written transfer requests directly to our
processing office. Transfer requests should specify:
(1) the contract number,
(2) the dollar amounts or percentages of your current account value 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 Accumulator(R) Plus(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.
Frequent transfers, including market timing and other program trading
strategies, may be disruptive to the underlying portfolios in which the
variable investment options invest. Disruptive transfer activity may hurt the
long term performance of a portfolio by, for example, requiring it to maintain
larger amounts of cash or to liquidate portfolio holdings at a disadvantageous
time or price. We currently use the procedures described below to discourage
disruptive transfer activity in AXA Premier VIP Trust and EQ Advisors Trust.
You should understand, however, that these procedures are subject to the
following limitations: (1) they do not eliminate the possibility that
disruptive transfer activity, including market timing, will occur or that
portfolio performance will be affected by such activity; (2) the design of
these procedures involves inherently subjective judgments, which we and AXA
Premier VIP Trust and EQ Advisors Trust seek to make in a fair and reasonable
manner consistent with interests of all policy and contract owners. Certain
frequent transfer activities attempt to exploit inefficiencies in how portfolio
securities are valued. Please see the prospectuses for the underlying
portfolios for more information on how portfolio shares are priced.
If we determine that your transfer patterns are disruptive, 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. 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 reduce disruptive activity,
Transferring your money among investment options 33
we monitor the frequency of transfers, including the size of transfers in
relation to portfolio assets, in each underlying portfolio. When a potentially
disruptive transfer into or out of a portfolio occurs on a day when the
portfolio's aggregate deposits or aggregate redemptions exceed our monitoring
threshold, we may take the actions described above to restrict availability of
voice, fax and automated transaction services. We currently apply such action
for the remaining life of each affected contract. We also currently provide a
letter to owners who have engaged in disruptive transfer activity of our
intention to restrict access to communication 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 potentially disruptive transfer
activity and our monitoring procedures and thresholds, as well as change our
procedures to restrict this activity.
Our ability to monitor potentially disruptive transfer activity is limited in
certain circumstances. Group annuity contracts may be owned by retirement plans
on whose behalf we provide transfer instructions on an omnibus (aggregate)
basis, which may mask the disruptive transfer activity of individual plan
participants, and/or interfere with our ability to restrict communication
services. Also, underlying portfolios that are not in AXA Premier VIP Trust or
EQ Advisors Trust may be available for investment through companies that may
have policies and procedures regarding disruptive transfer activity that are
different from ours. Please see the prospectuses for those underlying
portfolios for more information.
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 reduce disruptive activity, we
monitor the frequency of transfers, including the size of transfers in relation
to portfolio assets, in each underlying portfolio. When a potentially
disruptive transfer into or out of a portfolio occurs on a day when the
portfolio's aggregate deposits or aggregate redemptions exceeds our monitoring
threshold, we may take the actions described above to restrict availability of
voice, fax and automated transaction services. We currently apply such action
for the remaining life of each affected contract. Contracts with relatively
small account values are excluded from the monitoring procedures but will be
subject to any restriction on access to communication facilities that we apply
to a combination of contracts and/or policies as described in the preceding
paragraph. We currently provide a letter to owners who have engaged in
disruptive transfer activity of our intention to restrict access to
communication 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 potentially disruptive transfer activity, and our monitoring
procedures and thresholds, as well as change our procedures to restrict this
activity.
Our ability to monitor potentially disruptive transfer activity is limited in
certain circumstances. Group annuity contracts may be owned by retirement plans
that provide transfer instructions on an omnibus (aggregate) basis, which may
mask the disruptive transfer activity of individual plan participants, and/or
interfere with our ability to restrict communication services. Also, underlying
portfolios that are not in the AXA Premier VIP Trust or the EQ Advisors Trust
may be available for investment through companies that may have policies and
procedures regarding disruptive transfer activity that are different from ours.
Please see the attached prospectuses for the Barr Rosenberg Variable Insurance
Trust and The Universal Institutional Funds, Inc. for more information.
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 on a contract year basis)
Rebalancing will occur on the same day of the month as the contract date. If a
contract is established after the 28th, rebalancing will occur on the first
business day of the month following the contract issue date.
While your rebalancing program is in effect, we will transfer amounts among the
variable investment options 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 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. 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; your rebalancing allocations will not be changed, and
the rebalancing program will remain in effect unless you request that it be
canceled in writing. There is no charge for the rebalancing feature.
You may not elect the rebalancing program if you are participating in any
dollar cost averaging program. Rebalancing is not available for amounts you
have allocated to the guaranteed interest option or the fixed maturity options.
34 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. If you withdraw more than 90% of a
contract's current cash value, we will treat it as a request to surrender the
contract for its cash value. See "Surrendering your contract to receive its
cash value" below. For the tax consequences of withdrawals, see "Tax
information" later in this Prospectus and in the SAI.
Please see "Termination of your contract" in "Determining your contract value"
earlier in this Prospectus and "How withdrawals affect your guaranteed minimum
income benefit and guaranteed minimum death benefit" below for more information
on how withdrawals affect your guaranteed benefits and could potentially cause
your contract to terminate.
- --------------------------------------------------------------------------------
Method of withdrawal
-----------------------------------------------------------------
Lifetime
required
Substantially minimum
Contract Lump sum Systematic equal distribution
- --------------------------------------------------------------------------------
NQ Yes Yes No No
- --------------------------------------------------------------------------------
Rollover IRA Yes Yes Yes Yes
- --------------------------------------------------------------------------------
Roth Con-
version IRA Yes Yes Yes No
- --------------------------------------------------------------------------------
Rollover
TSA* Yes Yes No Yes
- --------------------------------------------------------------------------------
QP Yes No No Yes
- --------------------------------------------------------------------------------
* For some Rollover TSA contracts, your ability to take withdrawals, loans or
surrender your contract may be limited. You must provide withdrawal
restriction information when you apply for a contract. See "Tax Sheltered
Annuity Contracts (TSAs)" in "Tax information" later in this Prospectus and
in the SAI.
LUMP SUM WITHDRAWALS
(All contracts)
You may take lump sum withdrawals from your account value at any time.
(Rollover TSA contracts may have restrictions). The minimum amount you may
withdraw is $300.
Lump sum withdrawals will be subject to a withdrawal charge if they exceed the
15% free withdrawal amount (see "15% free withdrawal amount" in "Charges and
expenses" later in this Prospectus). Under Rollover TSA contracts, if a loan is
outstanding, you may only take lump sum withdrawals as long as the cash value
remaining after any withdrawal equals at least 10% of the outstanding loan plus
accrued interest.
SYSTEMATIC WITHDRAWALS
(NQ, Rollover TSA, Rollover IRA and Roth Conversion IRA contracts only)
You may take systematic withdrawals of a particular dollar amount or a
particular percentage of your account value. (Rollover TSA contracts may have
restrictions).
You may take systematic withdrawals on a monthly, quarterly or annual basis as
long as the withdrawals do not exceed the following percentages of your account
value: 1.2% monthly, 3.6% quarterly and 15.0% annually. The minimum amount you
may take in each systematic withdrawal is $250. If the amount withdrawn would
be less than $250 on the date a withdrawal is to be taken, we will not make a
payment and we will terminate your systematic withdrawal election.
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, we
will make the withdrawals on the same calendar day of the month as the contract
date. You must wait at least 28 days after your contract is issued before your
systematic withdrawals can begin.
You may elect to take systematic withdrawals at any time. If you own an IRA
contract, you may elect this withdrawal method only if you are between ages
59-1/2 and 70-1/2.
You may change the payment frequency, or the amount or percentage of your
systematic withdrawals, once each contract year. However, you may not change
the amount or percentage in any contract year in which you have already taken a
lump sum withdrawal. You can cancel the systematic withdrawal option at any
time.
Systematic withdrawals are not subject to a withdrawal charge, except to the
extent that, when added to a lump sum withdrawal previously taken in the same
contract year, the systematic withdrawal exceeds the 15% free withdrawal
amount.
SUBSTANTIALLY EQUAL WITHDRAWALS
(Rollover IRA and Roth Conversion IRA contracts only)
We offer our "substantially equal withdrawals option" to allow you to receive
distributions from your account value without triggering the 10% additional
federal income tax penalty, which normally applies to distributions made before
age 59-1/2. See "Tax information" later in this Prospectus and in the SAI. We
use one of the IRS-approved methods for doing this; this is not the exclusive
method of meeting this exception. After consultation with your tax adviser, you
may decide to use another method which would require you to compute amounts
yourself and request lump sum withdrawals. In such a case, a withdrawal charge
may apply. Once you begin to take substantially equal withdrawals, you should
not stop them or change the pattern of your withdrawals until after the later
of age 59-1/2 or five full years after the first withdrawal. If you stop or
change the withdrawals or take a lump sum withdrawal, you may be liable for the
10% federal tax penalty that would have otherwise been due on prior withdrawals
made under this option and for any interest on the delayed payment of the
penalty.
In accordance with IRS guidance, an individual who has elected to receive
substantially equal withdrawals may change, without penalty, from one of the
IRS-approved methods of calculating fixed payments to another IRS-approved
method (similar to the required minimum distribution rules) of calculating
payments which vary each year.
Accessing your money 35
You may elect to take substantially equal withdrawals at any time before age
59-1/2. 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. You may not elect to
receive the first payment in the same contract year in which you took a lump
sum withdrawal. We will calculate the amount of your substantially equal
withdrawals using the IRS-approved method we offer. The payments will be made
monthly, quarterly or annually as you select. These payments will continue
until we receive written notice from you to cancel this option or you take a
lump sum withdrawal. You may elect to start receiving substantially equal
withdrawals again, but the payments may not restart in the same contract year
in which you took a lump sum withdrawal. We will calculate the new withdrawal
amount.
Substantially equal withdrawals are not subject to a withdrawal charge.
LIFETIME REQUIRED MINIMUM DISTRIBUTION WITHDRAWALS
(Rollover IRA and Rollover TSA and QP contracts only -- See "Tax information"
later in this Prospectus and in the SAI)
We offer the minimum distribution withdrawal option to help you meet 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 or in any later year. The
minimum amount we will pay out is $250. Currently, minimum distribution
withdrawal payments will be made annually. See "Required minimum distributions"
in "Tax information" later in this Prospectus and in the SAI for your specific
type of retirement arrangement.
Currently, we do not impose a withdrawal charge on minimum distribution
withdrawals if you are enrolled in our "automatic required minimum distribution
(RMD) service" except if, when added to a lump sum withdrawal previously taken
in the same contract year, the minimum distribution withdrawal exceeds the 15%
free withdrawal amount.
Under Rollover TSA contracts, you may not elect minimum distribution
withdrawals if a loan is outstanding.
- --------------------------------------------------------------------------------
For Rollover IRA and Rollover TSA contracts, 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).
- --------------------------------------------------------------------------------
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 and the guaranteed
interest account. If there is insufficient value or no value in the variable
investment options and the guaranteed interest account, 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) first. A market value adjustment may apply to withdrawals from the
fixed maturity options.
HOW WITHDRAWALS AFFECT YOUR GUARANTEED MINIMUM INCOME BENEFIT AND GUARANTEED
MINIMUM DEATH BENEFIT
Withdrawals will reduce your guaranteed benefits on either a dollar-for-dollar
basis or on a pro rata basis as explained below:
INCOME BENEFIT AND DEATH BENEFIT
Your applicable benefit base will be reduced on a dollar-for-dollar basis as
long as the sum of your withdrawals in a contract year is 6% or less of the
applicable benefit base on the most recent contract date anniversary. Any
portion of a withdrawal that causes the sum of your withdrawals in a contract
year to exceed 6% of the applicable benefit base on the most recent contract
date anniversary and any subsequent withdrawals in that same contract year will
reduce your applicable benefit base on a pro rata basis.
The timing of your withdrawals and whether they exceed the 6% threshold
described above can have a significant impact on your guaranteed minimum income
benefit or guaranteed minimum death benefit.
Reduction on a dollar-for-dollar basis means that your current benefit will be
reduced by the dollar amount of the withdrawal. 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 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 guaranteed minimum death benefit
was $40,000 before the withdrawal, it would be reduced by $16,000 ($40,000 x
..40) and your new guaranteed minimum death benefit after the withdrawal would
be $24,000 ($40,000 - $16,000.) This pro rata example assumes that the annual
6% threshold described above has already been exceeded.
LOANS UNDER ROLLOVER TSA CONTRACTS
You may take loans from a Rollover TSA unless restricted by the employer who
provided the Rollover TSA funds. If you cannot take a loan, or cannot take a
loan without approval from the employer who provided the funds, we will have
this information in our records based on what you and the employer who provided
the funds told us when you purchased your contract. The employer must also tell
us whether special employer plan rules of the Employee Retirement Income
Security Act of 1974 ("ERISA") apply. We will not permit you to take a loan
while you are enrolled in our "automatic required minimum distribution (RMD)
service."
You should read the terms and conditions on our loan request form carefully
before taking out a loan. Under Rollover TSA contracts subjected to ERISA, you
may only take a loan with the written consent of your spouse. Your contract
contains further details of the loan provision. Also, see "Tax information"
later in this Prospectus and in the SAI, for general rules applicable to loans.
We will permit you to have only one loan outstanding at a time. The minimum
loan amount is $1,000. The maximum amount is $50,000 or, if less, 50% of your
account value, subject to any limits under the federal income tax rules. The
term of the loan is five years. However, if you use the loan to acquire your
primary residence, the term is 10 years. The term may not extend beyond the
earliest of:
(1) the date annuity payments begin,
(2) the date the contract terminates, and
36 Accessing your money
(3) the date a death benefit is paid (the outstanding loan will be deducted from
the death benefit amounts).
A loan request under your Rollover TSA contract will be processed on the first
business day of the month following the date on which the properly completed
loan request form is received. Interest will accrue daily on your outstanding
loan at a rate we set. The loan interest rate will be equal to the Moody's
Corporate Bond Yield Averages for Baa bonds for the calendar month ending two
months before the first day of the calendar quarter in which the rate is
determined.
LOAN RESERVE ACCOUNT
On the date your loan is processed, we will transfer the amount of your loan to
the loan reserve account. Unless you specify otherwise, we will subtract your
loan on a pro rata basis from your value in the variable investment options and
the guaranteed interest option. If these amounts are insufficient, any
additional amount of the loan will be subtracted from the fixed maturity
options in the order of the earliest maturity date(s) first. A market value
adjustment may apply.
We will credit interest to the amount in the loan reserve account at a rate of
2% lower than the loan interest rate that applies for the time your loan is
outstanding. On each contract date anniversary after the date the loan is
processed, we will transfer the amount of interest earned in the loan reserve
account to the variable investment options on a pro rata basis. When you make a
loan repayment, unless you specify otherwise, we will transfer the dollar
amount of the loan repaid from the loan reserve account to the investment
options according to the allocation percentages we have on our records. Loan
repayments are not considered contributions and therefore are not eligible for
additional credits.
SURRENDERING 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. (Rollover
TSA contracts may have restrictions). 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.
For the tax consequences of surrenders, see "Tax information" later in this
Prospectus and in the SAI.
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, payment of a death benefit, payment of any amount you
withdraw (less any withdrawal charge) and, upon surrender, 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 value in the guaranteed interest
account and 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 10 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
Equitable Accumulator(R) Plus(SM) offers you several choices of annuity payout
options. Some enable you to receive fixed annuity payments which can be either
level or increasing, 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. In addition, if you are exercising your guaranteed minimum
income benefit under the Living Benefit, your choice of payout options are
those that are available under the Living Benefit (see "Our Living Benefit
option" in "Contract features and benefits" earlier in this Prospectus).
- ---------------------------------------------------------------------
Fixed annuity payout options Life annuity
Life annuity with period
certain
Life annuity with refund
certain
Period certain annuity
- ---------------------------------------------------------------------
Variable Immediate Annuity Life annuity (not available
payout options in New York)
Life annuity with period
certain
- ---------------------------------------------------------------------
Income Manager payout Life annuity with period
options (available for annuitants certain
age 83 or less at contract issue) Period certain annuity
- ---------------------------------------------------------------------
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. 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 differ-
Accessing your money 37
ent payout option. In this case, the period certain will be based on the
annuitant's age and will not exceed 10 years.
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 guaranteed 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 you with details.
FIXED ANNUITY PAYOUT OPTIONS
With fixed annuities, we guarantee fixed annuity payments will be based either
on the tables of guaranteed annuity purchase factors in your contract or on our
then current annuity purchase factors, 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 Immediate Annuities may be funded through your choice of available
variable investment options investing in portfolios of the EQ Advisors Trust
and AXA Premier VIP Trust. The contract also offers a fixed income annuity
payout option that can be elected in combination with the variable annuity
payout option. The amount of each variable income 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.
INCOME MANAGER PAYOUT OPTIONS
The Income Manager payout annuity contracts differ from the other payout
annuity contracts. The other payout annuity contracts may provide higher or
lower income levels, but do not have all the features of the Income Manager
payout annuity contract. You may request an illustration of the Income Manager
payout annuity contract from your financial professional. Income Manager payout
options are described in a separate prospectus that is available from your
financial professional. Before you select an Income Manager payout option, you
should read the prospectus which contains important information that you should
know.
Both NQ and IRA Income Manager payout options provide guaranteed level
payments. The Income Manager (life annuity with period certain) also provides
guaranteed increasing payments (NQ contracts only). You may not elect an Income
Manager payout option without life contingencies unless withdrawal charges are
no longer in effect under your Equitable Accumulator(R) Plus(SM).
For QP and Rollover TSA contracts, if you want to elect an Income Manager
payout option, we will first roll over amounts in such contract to a Rollover
IRA contract with the plan participant as owner.
You may choose to apply your account value of your Equitable Accumulator(R)
Plus(SM) contract to an Income Manager payout annuity. In this case, we will
consider any amounts applied as a withdrawal from your Equitable Accumulator(R)
Plus(SM). For the tax consequences of withdrawals, see "Tax information" later
in this Prospectus and in the SAI.
Depending upon your circumstances, an Income Manager contract may be purchased
on a tax-free basis. Please consult you tax adviser. The Income Manager payout
options are not available in all states.
If you purchase an Income Manager contract in connection with the exercise of
the Living Benefit option, different payout options may apply as well as other
various differences. See "Our Living Benefit Option" in "Contract features and
benefits" earlier in this Prospectus as well as the Income Manager prospectus.
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.
For the fixed annuity payout options and Variable Immediate 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 under your
Equitable Accumulator(R) Plus(SM) is imposed if you select a period certain. If
the period certain is more than 5 years, then the withdrawal charge deducted
will not exceed 5% of the account value.
For the Income Manager payout life contingent options, no withdrawal charge is
imposed under the Equitable Accumulator(R) Plus(SM). If the withdrawal charge
that otherwise would have been applied to your account value under your
Equitable Accumulator(R) Plus(SM) is greater than 2% of the contributions that
remain in your contract at the time you purchase your payout option, the
withdrawal charges under the Income Manager will apply. The year in which your
account value is applied to the payout option will be "contract year 1."
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. The contract owner and annuitant
must meet the issue age and payment requirements.
38 Accessing your money
You can choose the date annuity payments begin but it may not be earlier than
five years from the Accumulator(R) Plus(SM) contract date. Except with respect
to Income Manager annuity payout options, where payments are made on the 15th
day of each month, 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 annuity maturity
date described below.
If you elect to start receiving annuity payments within three years of making
an additional contribution, we will recover the amount of any credit that
applies to that contribution.
The amount of the annuity payments will depend on the amount applied to
purchase the annuity and the applicable annuity purchase factors, discussed
earlier.
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.
ANNUITY MATURITY DATE
Your contract has a maturity date by which you must either take a lump sum
withdrawal or select an annuity payout option. The maturity date is generally
the contract date anniversary that follows the annuitant's 95th birthday. For
contracts issued in New York, the maturity date is the contract date that
follows the annuitant's 90th birthday.
For contracts issued in Pennsylvania, the maturity date is related to the
contract issue date, as follows:
- ---------------------------------
Maximum
Issue age annuitization age
- ---------------------------------
0-75 85
76 86
77 87
78-80 88
- ---------------------------------
Before the last day 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: (i) transfers (if permitted in
the future) among the variable investment options if a Variable Immediate
Annuity payout option is selected; and (ii) withdrawals or contract surrender
(subject to a market value adjustment) if an Income Manager annuity payout
option is chosen.
Accessing your money 39
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 An administrative charge
o A distribution charge
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 each contract date anniversary -- an annual administrative charge, if
applicable.
o At the time you make certain withdrawals or surrender your contract -- a
withdrawal charge.
o On each contract date anniversary -- a charge if you elect a death benefit
(other than the Standard death benefit).
o On each contract date anniversary -- a charge for the Living Benefit, if you
elect this optional 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.
o On each contract date anniversary -- a charge for Protection Plus, if you
elect this optional benefit.
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.
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 Standard death
benefit. The daily charge is equivalent to an annual rate of 0.90% 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 income 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. Lastly,
we assume a mortality risk to the extent that at the time of death, the
guaranteed minimum 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. A portion of this charge also
compensates us for the contract credit. For a discussion of the credit, see
"Credits" in "Contracts features and benefits" earlier in this Prospectus. We
expect to make a profit from this charge.
ADMINISTRATIVE CHARGE
We deduct a daily charge from the net assets in each variable investment option
to compensate us for administrative expenses under the contracts. The daily
charge is equivalent to an annual rate of 0.25% of the net assets in each
variable investment option.
DISTRIBUTION CHARGE
We deduct a daily charge from the net assets in each variable investment option
to compensate us for a portion of our sales expenses under the contracts. The
daily charge is equivalent to an annual rate of 0.25% of the net assets in each
variable investment option.
ANNUAL ADMINISTRATIVE CHARGE
We deduct an administrative charge from your account value on each contract
date anniversary. We deduct the charge if your account value on the last
business day of the contract year is less than $50,000. If your account value
on such date is $50,000 or more, we do not deduct the charge. During the first
two contract years, the charge is equal to $30 or, if less, 2% of your account
value. The charge is $30 for contract years three and later.
We will deduct this charge from your value in the variable investment options
and the guaranteed interest option (if permitted in your state) on a pro rata
basis. If those amounts are insufficient, we will deduct all or a portion of
the charge from the fixed maturity options in order of the earliest maturity
date(s) first. A market value adjustment may apply. If you surrender your
contract during the contract year, we will deduct a pro rata portion of the
charge.
If your account value is insufficient to pay this charge, your contract will
terminate without value and you will lose any applicable guaranteed benefits.
Please see "Termination of your contract" in "Determining your contract value"
earlier in this Prospectus.
WITHDRAWAL CHARGE
A withdrawal charge applies in two circumstances: (1) if you make one or more
withdrawals during a contract year that, in total, exceed the 15% free
withdrawal amount, described below, or (2) if you surrender your contract to
receive its cash value or apply your cash value to a non life contingent
annuity payout option. A portion of this charge also compensates us for the
contract credit. For a discussion of the credit, see "Credits" in "Contracts
features and benefits" earlier in this Prospectus. We expect to make a profit
from this charge.
40 Charges and expenses
The withdrawal charge equals a percentage of the contributions withdrawn. We do
not consider credits to be contributions. Therefore, there is no withdrawal
charge associated with a credit.
The percentage of the withdrawal charge that applies to each contribution
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 9+
- ------------------------------------------------------------------------------
Percentage of
contribution 8% 8% 7% 7% 6% 5% 4% 3% 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 withdrawals 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 your contract as withdrawn first. See "Tax
information" later in this Prospectus and in the SAI.
In order to give you the exact dollar amount of the withdrawal you request, we
deduct the amount of the withdrawal and the withdrawal charge from your account
value. Any amount deducted to pay withdrawal charges is also subject to the
same withdrawal charge percentage. We deduct the charge in proportion to the
amount of the withdrawal subtracted from each variable investment option. The
withdrawal charge helps cover our sales expenses.
The withdrawal charge does not apply in the circumstances described below.
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 beginning of each contract
year, or in the case of the first contract year, your initial contribution,
minus any other withdrawals made during the contract year. The 15% free
withdrawal amount does not apply if you surrender your contract except where
required by law.
DISABILITY, TERMINAL ILLNESS, OR CONFINEMENT TO NURSING HOME. The withdrawal
charge 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,
or U.S. Virgin Islands) 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, if the conditions as described in (i), (ii)
or (iii) above existed at the time a contribution was remitted or if the
condition began within 12 months of the 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.
GUARANTEED MINIMUM DEATH BENEFIT CHARGE
Annual ratchet to age 85. If you elect the Annual ratchet to age 85 enhanced
death benefit, we deduct a charge annually from your account value on each
contract date anniversary for which it is in effect. The charge is equal to
0.30% of the Annual ratchet to age 85 benefit base.
6% Roll up to age 85. If you elect the 6% Roll up to age 85 enhanced death
benefit, we deduct a charge annually from your account value on each contract
date anniversary for which it is in effect. The charge is equal to 0.45% of the
6% Roll up to age 85 benefit base.
Greater of 6% Roll up to age 85 or Annual ratchet to age 85. If you elect this
enhanced death benefit, we deduct a charge annually from your account value on
each contract date anniversary for which it is in effect. The charge is equal
to 0.60% of the greater of the 6% Roll up to age 85 or the Annual ratchet to
age 85 benefit base.
We will deduct this charge from your value in the variable investment options
and the guaranteed interest option on a pro-rata basis. If those amount are
insufficient, we will deduct all or a portion of the charge from the fixed
maturity options in order of the earliest maturity date(s) first. A market
value adjustment may apply.
If your account value is insufficient to pay this charge, your contract will
terminate without value and you will lose any applicable guaranteed benefits.
Please see "Termination of your contract" in "Determining your contract value"
earlier in this Prospectus.
There is no additional charge for the Standard death benefit.
LIVING BENEFIT CHARGE
If you elect the Living Benefit, we deduct a charge annually from your account
value on each contract date anniversary until such time as you exercise the
guaranteed minimum income benefit, elect another annu-
Charges and expenses 41
ity payout option or the contract date anniversary after the annuitant reaches
age 85, whichever occurs first. The charge is equal to 0.60% of the applicable
benefit base in effect on the contract date anniversary.
We will deduct this charge from your value in the variable investment options
and the guaranteed interest option on a pro rata basis. If those amounts are
insufficient, we will deduct all or a portion of the charge from the fixed
maturity options in order of the earliest maturity date(s) first. A market
value adjustment may apply.
If your account value is insufficient to pay this charge, your contract will
terminate without value and you will lose any applicable guaranteed benefits.
Please see "Termination of your contract" in "Determining your contract value"
earlier in this Prospectus.
PROTECTION PLUS
If you elect Protection Plus, we deduct a charge annually from your account
value on each contract date anniversary for which it is in effect. The charge
is equal to 0.35% of the account value on each contract date anniversary. We
will deduct this charge from your value in the variable investment options and
the guaranteed interest option on a pro rata basis. If those amounts are
insufficient, we will deduct all or a portion of the charge from the fixed
maturity options in the order of the earliest maturity date(s) first. A market
value adjustment may apply.
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 jurisdiction and ranges from 0% to 3.5%.
VARIABLE IMMEDIATE ANNUITY PAYOUT OPTION ADMINISTRATIVE FEE
We deduct a fee of $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 Management fees ranging from 0.10% to 1.50%.
o 12b-1 fees of either 0.25% or 0.35%.
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 prospectuses for the Trusts.
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 guaranteed minimum death
benefit or offer variable investment options that invest in shares of the
Trusts that are not subject to the 12b-1 fee. If permitted under the terms of
our exemptive order regarding Accumulator Plus(SM) bonus feature, we may also
change the crediting percentage that applies to contributions. 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 Rollover IRA and Roth Conversion 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 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.
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 would 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 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. You may be
limited as to the beneficiary you can designate in a Rollover TSA contract. In
a QP contract, the beneficiary must be the trustee. Where an NQ contract is
owned by a minor pursuant to the Uniform Gift to Minors Act or the Uniform
Transfers to Minors Act, the beneficiary must be the estate of the annuitant.
Where an IRA contract is owned in a custodial individual retirement account,
the custodian must be the beneficiary so that the custodian can reinvest or
distribute the death benefit as the beneficiary of the account desires.
The death benefit is equal to your account value (without adjustment for any
otherwise applicable negative market value adjustment) or, if greater, the
applicable guaranteed minimum death benefit. We determine the amount of the
death benefit (other than the applicable guaranteed minimum death benefit) and
any amount applicable under the Protection Plus feature, 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.
The amount of the applicable guaranteed minimum death benefit will be such
guaranteed minimum death benefit as of the date of the annuitant's death,
adjusted for any subsequent withdrawals. The death benefit will be less a
deduction for any outstanding loan plus accrued interest on the date that the
death benefit is made (applies to Rollover TSA only).
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, a
surviving spouse of the deceased owner/annuitant can choose to be treated as
the successor owner/annuitant and continue the contract. Only a spouse who is
the sole primary beneficiary can be a successor owner/annuitant. The successor
owner/annuitant feature is only available under NQ and individually-owned IRA
contracts.
For NQ and 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.
When the owner is not the annuitant under an NQ contract and the owner dies
before annuity payments begin, the beneficiary named to receive the death
benefit upon the annuitant's death will become the successor owner. If you do
not want this beneficiary 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. The surviving
owner automatically takes the place of any other beneficiary designation.
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 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. An eligible successor owner,
including a surviving joint owner after the first owner dies, may elect the
beneficiary continuation option for NQ contracts discussed later under
"Beneficiary continuation option" below.
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.
SUCCESSOR OWNER AND ANNUITANT
If you are both the contract owner and the annuitant, and your spouse is the
sole primary beneficiary or the joint owner, then your spouse may elect to
receive the death benefit or continue the contract as successor
owner/annuitant.
Payment of death benefit 43
If your surviving spouse decides to continue the contract, then as of the date
we receive satisfactory proof of your death, any required instructions and
information, and forms necessary to effect the successor owner/annuitant
feature, we will increase the account value to equal your elected guaranteed
minimum death benefit as of the date of your death if such death benefit is
greater than your account value, plus any amount applicable under the
Protection Plus feature, and adjusted for any subsequent withdrawals. 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 considered to be withdrawn
only after all other amounts have been withdrawn. In determining whether your
applicable guaranteed minimum death benefit option will continue to grow, we
will use your surviving spouse's age (as of the date we receive satisfactory
proof of your death, any required instructions and the information and forms
necessary to effect the successor owner/annuitant feature).
Where an NQ contract is owned by a Living Trust, as defined in the contract,
and at the time of the annuitant's death the annuitant's spouse is the sole
beneficiary of the Living Trust, the Trustee, as owner of the contract, may
request that the spouse be substituted as annuitant as of the date of the
annuitant's death. No further change of annuitant will be permitted.
Where an IRA contract is owned in a custodial individual retirement account,
and your spouse is the sole beneficiary of the account, the custodian may
request that the spouse be substituted as annuitant after your death.
BENEFICIARY CONTINUATION OPTION
This feature permits a designated individual, on the contract owner's death, to
maintain a contract in the deceased contract owner's 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, Roth IRA and NQ contracts, subject to state availability. Please speak
with your financial professional for further information.
BENEFICIARY CONTINUATION OPTION FOR TRADITIONAL IRA AND ROTH IRA CONTRACTS
ONLY. The beneficiary continuation option must be elected by September 30th of
the year following the calendar year of your death and before any other
inconsistent election is made. Beneficiaries who do not make a timely election
will not be eligible for this 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 applicable death
benefit if such death benefit is greater than such account value, plus any
amount applicable under the Protection Plus feature, and adjusted for any
subsequent withdrawals. Where an IRA contract is owned in a custodial
individual retirement account, the custodian may reinvest the death benefit in
an individual retirement annuity contract, using the account beneficiary as the
annuitant. Please speak with your financial professional for further
information.
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. For sole
spousal beneficiaries, payments may begin by December 31st of the calendar year
in which you would have reached age 70-1/2, if such time is later. For
traditional IRA contracts only, if you die before your Required Beginning Date
for Required Minimum Distributions, as discussed in the Statement of Additional
Information, the beneficiary may choose the "5-year rule" option instead of
annual payments over life expectancy. The 5-year rule is always available to
beneficiaries under Roth IRA contracts. If the beneficiary chooses this option,
the beneficiary may take withdrawals as desired, but the entire account value
must be fully withdrawn by December 31st of the calendar year which contains
the fifth anniversary of your death.
Under the beneficiary continuation option for IRA and Roth IRA contracts:
o The contract continues in your name for the benefit of your beneficiary.
o This feature is only available if the beneficiary is an individual. Certain
trusts with only individual beneficiaries will be treated as individuals for
this purpose.
o If there is more than one beneficiary, each beneficiary's share will be
separately accounted for. It will be distributed over the beneficiary's own
life expectancy, if payments over life expectancy are chosen.
o The minimum amount that is required in order to elect the beneficiary
continuation option is $5,000 for each beneficiary.
o The beneficiary may make transfers among the investment options but no
additional contributions will be permitted.
o If you had elected the guaranteed minimum income benefit or an optional
enhanced death benefit under the contract, they will no longer be in effect
and charges for such benefits will stop. Also, any minimum death benefit
feature 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, if any, will apply.
o 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 required 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.
BENEFICIARY CONTINUATION OPTION FOR NQ CONTRACT ONLY. This feature, also known
as the Inherited annuity, may only be elected when the NQ contract owner dies
before the annuity commencement date, whether or not the owner and the
annuitant are the same person. If the owner
44 Payment of death benefit
and annuitant are different and the owner dies before the annuitant, for
purposes of this discussion, "beneficiary" refers to the successor owner. For a
discussion of successor owner, see "When an NQ contract owner dies before the
annuitant" earlier in this section. This feature must be elected within 9
months following the date of your death and before any inconsistent election is
made. Beneficiaries who do not make a timely election will not be eligible for
this option.
Generally, payments will be made once a year to the beneficiary over the
beneficiary's life expectancy, determined on a term certain basis and in the
year payments start. These payments must begin no later than one year after the
date of your death and are referred to as "scheduled payments." The beneficiary
may choose the "5-year rule" instead of scheduled payments over life
expectancy. If the beneficiary chooses the 5-year rule, there will be no
scheduled payments. Under the 5-year rule, the beneficiary may take withdrawals
as desired, but the entire account value must be fully withdrawn by the fifth
anniversary of your death.
Under the beneficiary continuation option for NQ contracts (regardless of
whether the owner and the annuitant are the same person):
o This feature is only available if the beneficiary is an individual. It is
not available for any entity such as a trust, even if all of the
beneficiaries of the trust are individuals.
o The contract continues in your name for the benefit of your beneficiary.
o If there is more than one beneficiary, each beneficiary's share will be
separately accounted for. It will be distributed over the respective
beneficiary's own life expectancy, if scheduled payments are chosen.
o The minimum amount that is required in order to elect the beneficiary
continuation option is $5,000 for each beneficiary.
o The beneficiary may make transfers among the investment options but no
additional contributions will be permitted.
o If you had elected the guaranteed minimum income benefit or an optional
enhanced death benefit under the contract, they will no longer be in effect
and charges for such benefits will stop. Also, any minimum death benefit
feature will no longer be in effect.
o If the beneficiary chooses the "5-year rule," withdrawals may be made at any
time. If the beneficiary instead chooses scheduled payments, the beneficiary
must also choose between two potential withdrawal options at the time of
election. If the beneficiary chooses "Withdrawal Option 1", the beneficiary
cannot later withdraw funds in addition to the scheduled payments the
beneficiary is receiving; "Withdrawal Option 1" permits total surrender
only. "Withdrawal Option 2" permits the beneficiary to take withdrawals, in
addition to scheduled payments, at any time. However, the scheduled payments
under "Withdrawal Option 1" are afforded favorable tax treatment as "annuity
payments." See "Taxation of nonqualified annuities" in "Tax Information"
later in this Prospectus.
o Any partial withdrawals must be at least $300.
o Your beneficiary will have the right to name a beneficiary to receive any
remaining interest in the contract on the beneficiary's death.
o Upon the death of your beneficiary, the beneficiary he or she has named has
the option to either continue taking scheduled payments based on the
remaining life expectancy of the deceased beneficiary (if scheduled payments
were chosen) or to receive any remaining interest in the contract in a lump
sum. We will pay any remaining interest in the contract in a lump sum if
your beneficiary elects the 5-year rule. 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.
If you are both the owner and annuitant:
o 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 annuity account value to
equal the applicable death benefit if such death benefit is greater than
such account value, plus any amount applicable under the Protection Plus
feature, and adjusted for any subsequent withdrawals.
o No withdrawal charges, if any, will apply to any withdrawals by the
beneficiary.
If the owner and annuitant are not the same person:
o If the beneficiary continuation option is elected, the beneficiary
automatically becomes the new annuitant of the contract, replacing the
existing annuitant.
o The annuity account value will not be reset to the death benefit amount.
o The contract's withdrawal charge schedule will continue to be applied to any
withdrawal or surrender other than scheduled payments; the contract's free
corridor amount will continue to apply to withdrawals but does not apply to
surrenders.
o We do not impose a withdrawal charge on scheduled payments except if, when
added to any withdrawals previously taken in the same contract year,
including for this purpose a contract surrender, the total amount of
withdrawals and scheduled payments exceed the free corridor amount. See the
"Withdrawal charges" in "Charges and expenses" earlier in this Prospectus.
If a contract is jointly owned:
o The surviving owner supersedes any other named beneficiary and may elect the
beneficiary continuation option.
o If the deceased joint owner was also the annuitant, see "If you are both the
owner and annuitant" earlier in this section.
o If the deceased joint owner was not the annuitant, see "If the owner and
annuitant are not the same person" earlier in this section.
Payment of death benefit 45
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 Equitable Accumulator(R) Plus(SM) contracts owned by
United States individual taxpayers. The tax rules can differ, depending on the
type of contract, whether NQ, traditional IRA, Roth IRA, QP or TSA. 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
without notice. 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 or values under the contract, or payments under the contract,
for example, amounts due to beneficiaries, may be subject to federal or state
gift, estate, or inheritance 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 adviser 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") and Code Section 403(b)
Arrangements ("TSAs"), respectively: an IRA or 403(b) annuity contract such as
this one, or an IRA or 403(b)(7) custodial or other qualified account. Annuity
contracts can also be purchased in connection with retirement 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. More information on IRAs and TSAs is provided
in the SAI. 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 Accumulator(R) Plus(SM), extra credit on each contribution,
choice of death benefits, the living benefit guaranteed minimum income benefit
guaranteed interest option, selection of investment funds and its choices of
pay-out options that are available in Accumulator(R) Plus(SM), as well as the
features and benefits of other permissible funding vehicles and the relative
costs of annuities and other arrangements. You should be aware that cost may
vary depending on the features and benefits made available and the charges and
expenses of the investment options or funds that you elect. Although certain
provisions of the Temporary Regulations on required minimum distributions
concerning the actuarial value of additional contract benefits, which could
have increased the amount required to be distributed from annuity contracts
funding qualified plans, TSAs and IRAs have currently been suspended, these or
similar provisions may apply in future years. You may want to discuss with your
tax adviser the potential implication of these Regulations before you purchase
this annuity contract or purchase additional features under this annuity
contract. See also Appendix II at the end of this Prospectus for a discussion
of QP contracts.
TRANSFERS AMONG VARIABLE INVESTMENT OPTIONS
You can make transfers among variable 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 the 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
46 Tax information
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 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.
PROTECTION PLUS FEATURE
In order to enhance the amount of the death benefit to be paid at the
Annuitant's death, you may purchase a Protection Plus rider for your NQ
contract. Although we regard this benefit as an investment protection feature
which should have no adverse tax effect, it is possible that the IRS could take
a contrary position or assert that the Protection Plus rider is not part of the
contract. In such a case, the charges for the Protection Plus rider could be
treated for federal income tax purposes as a partial withdrawal from the
contract. If this were so, such a deemed withdrawal could be taxable, and for
contract owners under age 59-1/2, also subject to a tax penalty. Were the IRS to
take this position, Equitable would take all reasonable steps to attempt to
avoid this result which could include amending the contract (with appropriate
notice to you).
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
Equitable Accumulator(R) Plus(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 the contract, of the
source contract carries over to the Equitable Accumulator(R) Plus(SM) NQ
contract.
An owner may 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 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.
Beneficiary continuation option
We have received a private letter ruling from the IRS regarding certain tax
consequences of scheduled payments under the beneficiary continuation option
for NQ contracts. See the discussion "Beneficiary continuation option for NQ
contracts only" in "Payment of death benefit" earlier in this Prospectus. Among
other things, the IRS rules that:
o scheduled payments under the beneficiary continuation option for NQ
contracts satisfy the death of owner rules of Section 72(s)(2) of the Code,
regardless of whether the beneficiary elects Withdrawal Option 1 or
Withdrawal Option 2;
o scheduled payments, any additional withdrawals under Withdrawal Option 2, or
contract surrenders under Withdrawal Option 1 will only be taxable to the
beneficiary when amounts are actually paid, regardless of the Withdrawal
Option selected by the beneficiary;
o a beneficiary who irrevocably elects scheduled payments with Withdrawal
Option 1 will receive "excludable amount" tax treatment on scheduled
payments. See "Annuity payments" earlier in this section. If the beneficiary
elects to surrender the contract before all scheduled payments are paid, the
amount received upon surrender is a non-annuity payment taxable to the
extend it exceeds any remaining investment in the contract.
Tax information 47
The ruling specifically does not address the taxation of any payments received
by a beneficiary electing Withdrawal Option 2 (whether scheduled payments or
any withdrawal that might be taken). There is no assurance that we will receive
any further rulings addressing the tax consequences of payments under
Withdrawal Option 2. Before electing the beneficiary continuation option
feature, the individuals you designate as beneficiary or successor owner should
discuss with their tax advisers the consequences of such elections.
The tax treatment of a withdrawal after the death of the owner taken as a
single sum or taken as withdrawals under the 5-year rule is generally the same
as the tax treatment of a withdrawal from or surrender of 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, in accordance with IRS formulas.
INVESTOR CONTROL ISSUES
Under certain circumstances, the IRS has stated that you could be treated as
the owner (for tax purposes) of the assets of Separate Accounts 45 and 49. If
you were treated as the owner, you would be taxable on income and gains
attributable to the shares of the underlying portfolios.
The circumstances that would lead to this tax treatment would be that, in the
opinion of the IRS, you could control the underlying investment of Separate
Accounts 45 and 49. Recently, the IRS has said that the owners of variable
annuities will not be treated as owning the separate account assets provided
the underlying portfolios are restricted to variable life and annuity assets.
The variable annuity owners must have the right only to choose among the
portfolios, and must have no right to direct the particular investment
decisions within the portfolios.
Although we believe that, under current IRS guidance, you would not be treated
as the owner of the assets of Separate Accounts 45 and 49, there are some
issues that remain unclear. For example, the IRS has not issued any guidance as
to whether having a larger number of portfolios available, or an unlimited
right to transfer among them, could cause you to be treated as the owner. We do
not know whether the IRS will ever provide such guidance or whether such
guidance, if unfavorable, would apply retroactively to your contract.
Furthermore, the IRS could reverse its current guidance at any time. We reserve
the right to modify your contract as necessary to prevent you from being
treated as the owner of the assets of Separate Accounts 45 and 49.
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 trustee or custodian holds
the assets funding the account for the benefit of the IRA owner. The assets
typically can include mutual funds and/or individual stocks and/or 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; and
o Roth IRAs 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 (http://www.irs.gov).
Equitable Life designs its IRA contracts to qualify as individual retirement
annuities under Section 408(b) of the Internal Revenue Code. You may purchase
the contract as a traditional IRA ("Rollover IRA") or Roth IRA ("Roth
Conversion IRA"). The SAI contains the information that the IRS requires you to
have before you purchase an IRA. The disclosure generally assumes direct
ownership of the individual retirement annuity contract. For contracts owned in
a custodial individual retirement account, the disclosure will apply only if
you terminate your account or transfer ownership of the contract to yourself.
We have received an opinion letter from the IRS approving the respective forms
of the Equitable Accumulator(R) traditional and Roth IRA
48 Tax information
contracts, as amended to reflect recent tax law changes, 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 contracts
submitted for IRS approval do not include every feature possibly available
under the Equitable Accumulator(R) traditional and Roth IRA contracts.
PROTECTION PLUS(SM) FEATURE
The Protection Plus feature is offered for IRA contracts, subject to state and
contract availability. We have received IRS opinion letters that the contract
with a Protection Plus feature qualifies 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 contracts submitted for IRS approval do not
include every feature possibly available under the Equitable Accumulator(R)
traditional and Roth IRA contracts. You should discuss with your tax adviser
whether you should consider purchasing an Accumulator(R) Plus(SM) IRA or
Accumulator(R) Plus(SM) Roth IRA with optional Protection Plus feature.
CONTRIBUTIONS
Individuals may make three different types of contributions to an 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 IRAs of the same type
("direct transfers").
In addition, an individual may make a taxable rollover contribution from a
traditional IRA to a Roth IRA ("conversion" contributions).
Contributions to all types of IRAs are compensation-based. They are either made
from your current compensation or have a connection with past compensation (for
example, rollover contributions from an eligible retirement plan that you had
with an employer relate to past compensation). Under certain circumstances,
your nonworking spouse, former spouse or surviving spouse may contribute to an
IRA. You can make regular contributions for any year to a traditional IRA
within federal tax law limits up until the calendar year you reach the age
70-1/2. Regular contributions for any year to a Roth IRA can be made at any time
during your life, subject to federal tax law limits.
The amount of contributions you may make to an IRA for any year and whether
such contributions are eligible for special tax treatment (for example,
deductibility from income or a special credit) may vary, depending on your
income, age and whether you participate in an employer-sponsored retirement
plan. Roth IRA contributions are not tax deductible. The maximum regular
contribution that can be made to all of your IRAs (whether traditional or Roth)
for the taxable year for which the contribution is made is $3,000 for 2004 and
$4,000 for 2005. The maximum regular contribution is increased to $3,500 for
2004 and $4,500 for 2005 if you are at least age 50 at any time during the
taxable year for which the contribution is made.
Rollover and transfer contributions are not subject to dollar limits. Rollover
contributions may be made to a traditional IRA from "eligible retirement plans"
which include other traditional IRAs, qualified plans, TSAs and governmental
employer 457(b) plans. For Roth IRAs, rollover contributions may be made from
other Roth IRAs and traditional IRAs. The conversion of a traditional IRA to a
Roth IRA is taxable. Direct transfer contributions may only be made directly
from one traditional IRA to another or from one Roth IRA to another.
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 adviser 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.
A more complete discussion of contributions to traditional IRAs and Roth IRAs
is contained in the SAI.
WITHDRAWALS AND DISTRIBUTIONS
You can withdraw any or all of your funds from an IRA at any time; you do not
need to wait for a special event like retirement. Earnings in IRAs are not
subject to federal income tax until amounts are paid to you or your
beneficiary. Withdrawals from an IRA , surrender of an IRA, death benefits from
an IRA and annuity payments from an IRA may be fully or partially taxable.
Withdrawals and distributions from IRAs are taxable as ordinary income (not
capital gain).
Payments from traditional IRAs and Roth IRAs are taxed differently. Payments
from traditional IRAs are generally fully taxable unless you have made
nondeductible regular contributions or rolled over after-tax contributions. In
any event, the issuer of the traditional IRA is entitled to report the
distribution as fully taxable and it is your responsibility to calculate the
taxable and tax-free portions of any traditional IRA payments on your own tax
returns.
Distributions from Roth IRAs generally receive return of contribution treatment
first under federal income tax calculation rules before any income is taxable.
Certain distributions from Roth IRAs may qualify for fully tax-free treatment.
These are distributions after you reach age 59-1/2, die, become disabled or meet
a qualified first-time homebuyer tax rule. You also have to meet a five-year
aging period.
A distribution from a traditional IRA will not be taxable if it is rolled over
to an eligible retirement plan. A distribution from a Roth IRA will not be
taxable if it is rolled over to another Roth IRA.
Taxable withdrawals or distributions from IRAs may be subject to an additional
10% penalty tax if you are under age 59-1/2, unless an exception applies.
Traditional IRAs are subject to required minimum distribution rules which
require that amounts begin to be distributed in a prescribed manner from the
IRA after the owner reaches age 70-1/2. These rules also require distributions
after the owner's death. No distributions are
Tax information 49
required to be made from Roth IRAs until after the Roth IRA owner's death, but
then the required minimum distribution rules apply.
A more complete discussion of the tax aspects of withdrawals and distributions
from traditional IRAs and Roth IRAs is contained in the SAI.
SPECIAL RULES FOR CONTRACTS FUNDING QUALIFIED PLANS
For QP contracts, your plan administrator or trustee notifies you as to tax
consequences. See Appendix II at the end of this Prospectus.
TAX-SHELTERED ANNUITY CONTRACTS (TSAS)
GENERAL
This section covers some of the special tax rules that apply to annuity
contracts under Section 403(b) of the Internal Revenue Code (TSAs).
Generally, there are two types of funding vehicles available for 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.
PROTECTION PLUS FEATURE
The Protection Plus feature is offered for Rollover TSA contracts, subject to
state and contract availability. There is no assurance that the contract with
the Protection Plus feature meets the IRS qualification requirements for TSAs.
There is a limit to the amount of life insurance benefits that TSAs may offer.
Although we view the optional Protection Plus benefit as an investment
protection feature which should have no adverse tax effect and not as a life
insurance benefit, it is possible that the IRS could take a contrary position
regarding tax qualification or assert that the Protection Plus rider is not a
permissible part of a TSA contract. If the IRS were to take the position that
the optional Protection Plus benefit is not part of the contract, in such a
case, the charges for the Protection Plus rider could be treated for federal
income tax purposes as a partial withdrawal from the contract. If this were so,
such a deemed withdrawal could affect the tax qualification of the TSA and
could be taxable. Were the IRS to take any adverse position, Equitable would
take all reasonable steps to attempt to avoid any adverse result, which would
include amending the contract (with appropriate notice to you). You should
discuss with your tax adviser whether you should consider purchasing an
Accumulator(R) Plus(SM) Rollover TSA contract with the optional Protection Plus
feature.
CONTRIBUTIONS TO TSAS
There are two ways you can make contributions to your Rollover TSA contract:
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.
If you make a direct transfer, you must fill out our transfer form.
ROLLOVER OR DIRECT TRANSFER CONTRIBUTIONS. You must establish your TSA with
funds that are directly transferred from another 403(b) arrangement or rolled
over from another 403(b) arrangement. You may make subsequent rollover
contributions to your Rollover TSA contract from these sources: qualified
plans, governmental employer 457(b) plans and traditional IRAs, as well as
other TSAs and 403(b) arrangements. All rollover contributions must be pre-tax
funds only with appropriate documentation satisfactory to us.
You should discuss with your tax adviser 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.
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 Equitable Accumulator(R) Plus(SM) contract receiving the funds has
provisions at least as restrictive as the source contract.
Before you transfer funds to a Rollover TSA contract, you may have to obtain
your employer's authorization or demonstrate that you do not need employer
authorization.
Contributions to TSAs are discussed in greater detail in the SAI.
DISTRIBUTIONS FROM 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. Your employer will tell us this when you establish the TSA through
a direct transfer.
You may also need spousal consent for certain transactions and payments.
WITHDRAWAL RESTRICTIONS. If this is a Revenue Ruling 90-24 direct transfer, we
will treat all amounts transferred to this contract and any future earnings on
the amount transferred as not eligible for withdrawal until one of the
following events happens:
o you are severed from employment with the employer which provided the funds
to purchase the TSA you are transferring to the Rollover TSA; or
o you reach age 59-1/2; or
o you die; or
o you become disabled (special federal income tax definition); or
o you take a hardship withdrawal (special federal income tax definition).
The amount of funds subject to withdrawal restrictions may depend on the source
of the funds used to establish the Accumulator(R) Plus(SM) TSA.
50 Tax information
TAX TREATMENT OF DISTRIBUTIONS. Amounts held under TSAs are generally not
subject to federal income tax until benefits are distributed. Distributions
include withdrawals from your TSA contract and annuity payments from your TSA
contract. Death benefits paid to a beneficiary are also taxable distributions.
Unless an exception applies, amounts distributed from TSAs are includable in
gross income as ordinary income. Distributions from TSAs may be subject to 20%
federal income tax withholding. See "Federal and state income tax withholding
and information reporting" later in this Prospectus. In addition, TSA
distributions may be subject to additional tax penalties.
If you have made after-tax contributions, you will have a tax basis in your TSA
contract, which will be recovered tax-free. Since we currently do not accept
after-tax funds, we do not track your investment in the contract, if any. We
will report all distributions from this Rollover TSA as fully taxable. It is
your responsibility to determine how much of the distribution is taxable.
A penalty tax of 10% of the taxable portion of the distribution applies to
distributions from a TSA before your reach age 59-1/2 unless an exception
applies.
Distributions from TSAs are discussed in greater detail in the SAI.
LOANS FROM TSAS
Loans are generally not treated as a taxable distribution. You may take loans
from a TSA unless restricted by the employer (for example, under an employer
plan subject to ERISA). If you cannot take a loan, or cannot take a loan
without approval from the employer who provided the funds, we will have this
information in our records based on what you and the employer who provided the
TSA funds told us when you purchased your contract.
Loans from TSAs are discussed in greater detail in the SAI.
TAX-DEFERRED ROLLOVERS AND DIRECT TRANSFERS
You may roll over an "eligible rollover distribution" from a TSA into another
eligible retirement plan (a qualified plan, a governmental employer 457(b) plan
(separate accounting required), another TSA or a traditional IRA) which agrees
to accept the rollover.
A spousal beneficiary may also roll over death benefits or certain
divorce-related payments.
Direct transfers of TSA funds from one TSA to another under Revenue Ruling
90-24 are not distributions.
Rollovers from TSAs are discussed in greater detail in the SAI.
REQUIRED MINIMUM DISTRIBUTIONS
TSAs are subject to required minimum distribution rules beginning at age 70-1/2
or separation from service, if later. These rules are discussed in greater
detail in the SAI.
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 $17,280 in periodic annuity payments in
2004, 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
Tax information 51
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), 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.
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 AND QUALIFIED PLAN DISTRIBUTIONS
Unless you have the distribution go directly to the new plan, eligible rollover
distributions from qualified plans and TSAs are subject to mandatory 20%
withholding. The plan administrator is responsible for withholding from
qualified plan distributions. An eligible rollover distribution from a TSA or a
qualified plan can be rolled over to another eligible retirement plan. All
distributions from a TSA 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 from service with the employer; 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
o substantially equal periodic payments made for a specified period of 10
years or more; or
o hardship withdrawals; 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.
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 No. 49 for taxes. We
do not now, but may in the future set up reserves for such taxes.
52 Tax information
8. More information
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ABOUT SEPARATE ACCOUNT NO. 49
Each variable investment option is a subaccount of Separate Account No. 49. We
established Separate Account No. 49 in 1996 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 No. 49 and may withdraw any amounts that exceed
our reserves and other liabilities with respect to variable investment options
under our contracts. The results of the Separate Account's operations are
accounted for without regard to Equitable Life's other operations.
The Separate Account 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 the Separate Account.
Each subaccount (variable investment option) within the Separate Account
invests solely in class IB 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 the Separate Account, 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 the Separate Account 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 the Separate Account or a
variable investment option directly);
(5) to deregister the Separate Account under the Investment Company Act of 1940;
(6) to restrict or eliminate any voting rights as to the Separate Account; 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
The Trusts 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.
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, 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.
FMO rates are determined daily. The rates in the table below are illustrative
only and will most likely differ from the rates applicable at time of purchase.
Current FMO rates can be obtained from your financial professional.
The rates to maturity for new allocations as of February 13, 2004 and the
related price per $100 of maturity value were as shown below.
- --------------------------------------------------------------
Fixed Maturity
Options with
February 13th Rate to Price
Maturity Date of Maturity as of Per $100 of
Maturity Year February 13, 2004 Maturity Value
- --------------------------------------------------------------
2005 3.00% * $ 97.08
2006 3.00% * $ 94.25
2007 3.00% * $ 91.51
2008 3.00% * $ 88.84
2009 3.00% * $ 86.25
2010 3.00% * $ 83.73
2011 3.00% * $ 81.30
2012 3.30% $ 77.11
2013 3.53% $ 73.16
2014 3.73% $ 69.31
- --------------------------------------------------------------
* Since these rates to maturity are 3%, no amounts could have been allocated
to these options.
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 any 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.
More information 53
(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 for your FMO based on the rate
for a new FMO issued on the same date and having the same maturity date
as your FMO; if the same maturity date is not available for new FMOs, we
determine a rate that is between the rates for new FMO maturities that
immediately precede and immediately follow your FMOs maturity date.
(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.
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) 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 by using a widely-published Index. We reserve the right to add up to
0.25% 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 expect the rates to maturity for the fixed maturity options 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,
guaranteed interest option and fixed maturity options as well as our general
obligations. Credits allocated to your account value are funded from our
general account.
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.
We have been advised that the staff of the SEC has not reviewed the portions of
this Prospectus that relate to the general account. 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
WIRE TRANSMITTALS AND ELECTRONIC APPLICATIONS
We accept initial and subsequent contributions sent by wire to our processing
office by agreement with certain broker-dealers. Such transmittals must be
accompanied by information we require to allocate your contribution. Wire
orders not accompanied by complete information may be retained as described
under "How you can make your contributions" under "Contract features and
benefits" earlier in this Prospectus.
Even if we accept the wire order and essential information, a contract
generally will not be issued until we receive and accept a properly completed
application. In certain cases we may issue a contract based on information
provided through certain broker-dealers with which we have established
electronic facilities. In any such cases, you must sign our Acknowledgement of
Receipt form.
54 More information
Where we require a signed application, the above procedures do not apply and no
financial transactions will be permitted until we receive the signed
application and have issued the contract. Where we issue a contract based on
information provided through electronic facilities, we require an
Acknowledgement of Receipt form, and financial transactions are only permitted
if you request them in writing, sign the request and have it signature
guaranteed, until we receive the signed Acknowledgement of Receipt form. After
your contract has been issued, additional contributions may be transmitted by
wire.
In general, the transaction date for electronic transmissions is the date on
which we receive at our regular processing office all required information and
the funds due for your contribution. We may also establish same-day electronic
processing facilities with a broker-dealer that has undertaken to pay
contribution amounts on behalf of its customers. In such cases, the transaction
date for properly processed orders is the business day on which the
broker-dealer inputs all required information into its electronic processing
system. You can contact us to find out more about such arrangements.
After your contract has been issued, additional contributions may be
transmitted by wire.
AUTOMATIC INVESTMENT PROGRAM -- FOR NQ CONTRACTS ONLY
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 contract on a monthly or quarterly basis. AIP is not available for
Rollover IRA, Roth Conversion IRA, QP contracts or Rollover TSA contracts.
The minimum amounts we will deduct are $100 monthly and $300 quarterly. AIP
additional contributions may be allocated to any of the variable investment
options and available fixed maturity options. 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.
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. on a business day, we will use the next business day.
o A loan request under your Rollover TSA contract will be processed on the
first business day of the month following the date on which the properly
completed loan request form is received.
o If your transaction is set to occur on the same day of the month as the
contract date and that date is the 29th, 30th or 31st of the month, then the
transaction will occur on the 1st day of the next month.
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 If we have entered into an agreement with your broker-dealer for automated
processing of contributions upon receipt of customer order, your
contribution will be considered received at the time your broker-dealer
receives your contribution and all information needed to process your
application, along with any required documents, and transmits your order to
us in accordance with our processing procedures. Such arrangements may apply
to initial contributions, subsequent contributions, or both, and may be
commenced or terminated at any time without prior notice. If required by
law, the "closing time" for such orders will be earlier than 4 p.m., Eastern
Time.
CONTRIBUTIONS, CREDITS, AND TRANSFERS
o Contributions and credits allocated to the variable investment options are
invested at the value next determined after the close of the business day.
o Contributions and credits allocated to the guaranteed interest option will
receive the crediting rate in effect on that business day for the specified
time period.
o Contributions and credits allocated to a fixed maturity option will receive
the rate to maturity in effect for that fixed maturity option on that
business day (unless a rate lock-in is applicable).
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 a fixed maturity option will be based on the rate to maturity
in effect for that fixed maturity option on the business day of the
transfer.
o Transfers to the guaranteed interest option will receive the crediting rate
in effect on that business day for the specified time period.
o For the interest sweep option, 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 center.
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:
More information 55
o the election of trustees;
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 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 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 NO. 49 VOTING RIGHTS
If actions relating to the Separate Account 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 No. 49, our ability to meet our obligations under the
contracts, or the distribution of the contracts.
ABOUT OUR INDEPENDENT AUDITORS
The consolidated financial statements of Equitable Life at December 31, 2003
and 2002, and for the three years ended December 31, 2003 incorporated in this
Prospectus by reference to the 2003 Annual Report on Form 10-K are incorporated
in reliance on the report of PricewaterhouseCoopers LLP, independent auditors,
given on the authority of said firm as experts in auditing and accounting.
FINANCIAL STATEMENTS
The financial statements of Separate Account No. 49, as well as 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 1-800-789-7771.
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 Rollover IRA, Roth Conversion IRA,
QP or Rollover TSA contract except by surrender to us. If your individual
retirement annuity contract is held in your custodial individual retirement
account, you may only assign or transfer ownership of such an IRA contract to
yourself. Loans are not available and you cannot assign Rollover IRA, Roth
Conversion IRA and QP contracts as security for a loan or other obligation. If
the employer that provided the funds does not restrict them, loans are
available under a Rollover TSA contract.
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 Rollover IRA, Roth
Conversion IRA, QP or Rollover TSA 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
The contracts are distributed by both AXA Advisors, LLC ("AXA Advisors") and
AXA Distributors, LLC ("AXA Distributors"). Both AXA Advisors and AXA
Distributors serve as principal underwriters of Separate Account No. 49. The
offering of the contracts is intended to be continuous.
AXA Advisors (the successor to EQ Financial Consultants, Inc.), an affiliate of
Equitable Life, and AXA Distributors, an indirect wholly owned subsidiary of
Equitable Life, are registered with the SEC as broker dealers and are members
of the National Association of Securities Dealers, Inc. Their principal
business address is 1290 Avenue of the
56 More information
Americas, New York, NY 10104. Both broker dealers also act as distributors for
other Equitable Life annuity products.
AXA Distributors is a successor by merger to all of the functions, rights and
obligations of Equitable Distributors, Inc. ("EDI"). Like AXA Distributors, EDI
was owned by Equitable Holdings, LLC.
The contracts are sold by financial professionals of AXA Advisors and its
affiliates and by financial professionals of AXA Distributors, as well as by
affiliated and unaffiliated broker dealers who have entered into selling
agreements with AXA Distributors.
We pay broker-dealer sales compensation that will generally not exceed 6.0% of
the total contributions made under the contracts. Broker-dealers receiving
sales compensation will generally pay a portion of it to their financial
representatives as commissions related to the sales of the contracts. AXA
Distributors may also receive compensation and reimbursement for its marketing
services under the terms of its distribution agreement with Equitable Life, as
well as payments from portfolio advisers for sales meetings and/or seminar
sponsorships.
Equitable and/or AXA Distributors and/or AXA Advisors may use their respective
past profits or other resources to pay brokers and other financial
intermediaries for certain expenses they incur in providing services intended
to promote the sales of our products and/or shares in the underlying Trusts.
These services may include sales personnel training, prospectus review,
marketing and related services as well as support services that benefit
contract owners.
Similarly, in an effort to promote the sale of our products, AXA Advisors may
provide its financial professionals and managerial personnel with a higher
percentage of sales commissions and/or more compensation for the sale of an
Equitable variable product than it would for the sale of another product. Such
practice is known as providing differential compensation. Other forms of
compensation financial professionals may receive include, health and retirement
benefits, credits towards stock options awards and rewards for sales incentive
campaigns. In addition, managerial personnel may receive expense
reimbursements, marketing allowances and so called "overrides." In part for tax
reasons, AXA Advisors financial professionals and managerial personnel qualify
for health and retirement benefits based on their sales of our variable
products.
These payments and differential compensation (together,"payments") can vary in
amount based on the applicable product and/or entity or individual involved. As
with any incentive, such payments may cause the recipient to show preference in
recommending the purchase or sale of our products. However, under applicable
rules of the National Association of Securities Dealers, Inc., AXA Advisors
financial professionals may only recommend to you products that they reasonably
believe are suitable for you based on facts that you have disclosed as to your
other security holdings, financial situation and needs. In making any
recommendation, financial professionals may nonetheless face conflicts of
interest because of the differences in compensation from one product category
to another, and because of differences in compensation between products in the
same category. Although Equitable takes all of its costs into account in
establishing the level of fees and expenses in our products, payments made will
not result in any separate charge to you under your contract.
More information 57
9. Incorporation of certain documents by reference
- --------------------------------------------------------------------------------
Equitable Life's Annual Report on Form 10-K for the year ended December 31,
2003 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).
58 Incorporation of certain documents by reference
Appendix I: Condensed financial information
- --------------------------------------------------------------------------------
The unit values and number of units outstanding shown below are for contracts
offered under Separate Account 49 with the same daily asset charges of 1.40%.
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, 2003
- --------------------------------------------------------------------------------
For the year ending December 31,
----------------------------------
2003 2002
- --------------------------------------------------------------------------------
AXA Moderate Allocation
- --------------------------------------------------------------------------------
Unit value $ 40.88 $ 34.80
- --------------------------------------------------------------------------------
Number of units outstanding (000's) 6,360 1,307
- --------------------------------------------------------------------------------
AXA Premier VIP Aggressive Equity
- --------------------------------------------------------------------------------
Unit value $ 48.29 $ 35.61
- --------------------------------------------------------------------------------
Number of units outstanding (000's) 352 65
- --------------------------------------------------------------------------------
AXA Premier VIP Core Bond
- --------------------------------------------------------------------------------
Unit value $ 10.91 $ 10.67
- --------------------------------------------------------------------------------
Number of units outstanding (000's) 21,868 7,979
- --------------------------------------------------------------------------------
AXA Premier VIP Health Care
- --------------------------------------------------------------------------------
Unit value $ 9.97 $ 7.89
- --------------------------------------------------------------------------------
Number of units outstanding (000's) 5,004 1,289
- --------------------------------------------------------------------------------
AXA Premier VIP High Yield
- --------------------------------------------------------------------------------
Unit value $ 27.25 $ 22.55
- --------------------------------------------------------------------------------
Number of units outstanding (000's) 7,467 1,128
- --------------------------------------------------------------------------------
AXA Premier VIP International Equity
- --------------------------------------------------------------------------------
Unit value $ 10.33 $ 7.80
- --------------------------------------------------------------------------------
Number of units outstanding (000's) 5,137 1,360
- --------------------------------------------------------------------------------
AXA Premier VIP Large Cap Core Equity
- --------------------------------------------------------------------------------
Unit value $ 9.65 $ 7.64
- --------------------------------------------------------------------------------
Number of units outstanding (000's) 4,778 1,529
- --------------------------------------------------------------------------------
AXA Premier VIP Large Cap Growth
- --------------------------------------------------------------------------------
Unit value $ 8.74 $ 6.78
- --------------------------------------------------------------------------------
Number of units outstanding (000's) 9,505 2,593
- --------------------------------------------------------------------------------
AXA Premier VIP Large Cap Value
- --------------------------------------------------------------------------------
Unit value $ 10.22 $ 7.90
- --------------------------------------------------------------------------------
Number of units outstanding (000's) 8,731 2,676
- --------------------------------------------------------------------------------
AXA Premier VIP Small/Mid Cap Growth
- --------------------------------------------------------------------------------
Unit value $ 8.57 $ 6.20
- --------------------------------------------------------------------------------
Number of units outstanding (000's) 12,264 3,087
- --------------------------------------------------------------------------------
AXA Premier VIP Small/Mid Cap Value
- --------------------------------------------------------------------------------
Unit value $ 10.21 $ 7.37
- --------------------------------------------------------------------------------
Number of units outstanding (000's) 9,465 2,371
- --------------------------------------------------------------------------------
AXA Premier VIP Technology
- --------------------------------------------------------------------------------
Unit value $ 8.90 $ 5.66
- --------------------------------------------------------------------------------
Number of units outstanding (000's) 3,799 1,127
- --------------------------------------------------------------------------------
EQ/Alliance Common Stock
- --------------------------------------------------------------------------------
Unit value $208.22 $ 141.20
- --------------------------------------------------------------------------------
Number of units outstanding (000's) 814 112
- --------------------------------------------------------------------------------
Appendix I: Condensed financial information A-1
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, 2003 (CONTINUED)
- --------------------------------------------------------------------------------
For the year ending December 31,
----------------------------------
2003 2002
- --------------------------------------------------------------------------------
EQ/Alliance Growth and Income
- --------------------------------------------------------------------------------
Unit value $ 25.38 $ 19.73
- --------------------------------------------------------------------------------
Number of units outstanding (000's) 6,681 1,786
- --------------------------------------------------------------------------------
EQ/Alliance Intermediate Government Securities
- --------------------------------------------------------------------------------
Unit value $ 18.42 $ 18.29
- --------------------------------------------------------------------------------
Number of units outstanding (000's) 6,022 2,463
- --------------------------------------------------------------------------------
EQ/Alliance International
- --------------------------------------------------------------------------------
Unit value $ 11.35 $ 8.52
- --------------------------------------------------------------------------------
Number of units outstanding (000's) 6,792 1,026
- --------------------------------------------------------------------------------
EQ/Alliance Premier Growth
- --------------------------------------------------------------------------------
Unit value $ 5.86 $ 4.83
- --------------------------------------------------------------------------------
Number of units outstanding (000's) 8,430 2,607
- --------------------------------------------------------------------------------
EQ/Alliance Quality Bond
- --------------------------------------------------------------------------------
Unit value $ 15.45 $ 15.13
- --------------------------------------------------------------------------------
Number of units outstanding (000's) 7,296 2,167
- --------------------------------------------------------------------------------
EQ/Alliance Small Cap Growth
- --------------------------------------------------------------------------------
Unit value $ 13.61 $ 9.80
- --------------------------------------------------------------------------------
Number of units outstanding (000's) 5,936 1,577
- --------------------------------------------------------------------------------
EQ/Bernstein Diversified Value
- --------------------------------------------------------------------------------
Unit value $ 12.84 $ 10.11
- --------------------------------------------------------------------------------
Number of units outstanding (000's) 21,328 5,924
- --------------------------------------------------------------------------------
EQ/Calvert Socially Responsible
- --------------------------------------------------------------------------------
Unit value $ 7.93 $ 6.28
- --------------------------------------------------------------------------------
Number of units outstanding (000's) 964 208
- --------------------------------------------------------------------------------
EQ/Capital Guardian International
- --------------------------------------------------------------------------------
Unit value $ 9.51 $ 7.27
- --------------------------------------------------------------------------------
Number of units outstanding (000's) 8,648 1,957
- --------------------------------------------------------------------------------
EQ/Capital Guardian Research
- --------------------------------------------------------------------------------
Unit value $ 10.30 $ 7.95
- --------------------------------------------------------------------------------
Number of units outstanding (000's) 8,367 2,246
- --------------------------------------------------------------------------------
EQ/Capital Guardian U. S. Equity
- --------------------------------------------------------------------------------
Unit value $ 10.26 $ 7.63
- --------------------------------------------------------------------------------
Number of units outstanding (000's) 15,286 3,232
- --------------------------------------------------------------------------------
EQ/Emerging Markets Equity
- --------------------------------------------------------------------------------
Unit value $ 8.69 $ 5.66
- --------------------------------------------------------------------------------
Number of units outstanding (000's) 5,307 1,261
- --------------------------------------------------------------------------------
EQ/Equity 500 Index
- --------------------------------------------------------------------------------
Unit value $ 23.45 $ 18.61
- --------------------------------------------------------------------------------
Number of units outstanding (000's) 12,430 3,667
- --------------------------------------------------------------------------------
EQ/Evergreen Omega
- --------------------------------------------------------------------------------
Unit value $ 7.87 $ 5.77
- --------------------------------------------------------------------------------
Number of units outstanding (000's) 3,589 625
- --------------------------------------------------------------------------------
EQ/FI Mid Cap
- --------------------------------------------------------------------------------
Unit value $ 9.71 $ 6.86
- --------------------------------------------------------------------------------
Number of units outstanding (000's) 16,254 3,145
- --------------------------------------------------------------------------------
A-2 Appendix I: Condensed financial information
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, 2003 (CONTINUED)
- --------------------------------------------------------------------------------
For the year ending December 31,
2003 2002
- --------------------------------------------------------------------------------
EQ/FI Small/Mid Cap Value
- --------------------------------------------------------------------------------
Unit value $ 12.35 $ 9.40
- --------------------------------------------------------------------------------
Number of units outstanding (000's) 12,257 4,007
- --------------------------------------------------------------------------------
EQ/J.P. Morgan Core Bond
- --------------------------------------------------------------------------------
Unit value $ 13.44 $ 13.19
- --------------------------------------------------------------------------------
Number of units outstanding (000's) 18,211 5,930
- --------------------------------------------------------------------------------
EQ/Janus Large Cap Growth
- --------------------------------------------------------------------------------
Unit value $ 5.44 $ 4.38
- --------------------------------------------------------------------------------
Number of units outstanding (000's) 7,279 2,586
- --------------------------------------------------------------------------------
EQ/Lazard Small Cap Value
- --------------------------------------------------------------------------------
Unit value $ 14.35 $ 10.59
- --------------------------------------------------------------------------------
Number of units outstanding (000's) 10,965 3,006
- --------------------------------------------------------------------------------
EQ/Marsico Focus
- --------------------------------------------------------------------------------
Unit value $ 12.78 $ 9.89
- --------------------------------------------------------------------------------
Number of units outstanding (000's) 20,675 4,362
- --------------------------------------------------------------------------------
EQ/Mercury Basic Value Equity
- --------------------------------------------------------------------------------
Unit value $ 18.24 $ 14.10
- --------------------------------------------------------------------------------
Number of units outstanding (000's) 8,213 2,399
- --------------------------------------------------------------------------------
EQ/Mercury International Equity
- --------------------------------------------------------------------------------
Unit value $ 14.03 $ 11.11
- --------------------------------------------------------------------------------
Number of units outstanding (000's) 5,257 1,712
- --------------------------------------------------------------------------------
EQ/MFS Emerging Growth Companies
- --------------------------------------------------------------------------------
Unit value $ 11.84 $ 9.28
- --------------------------------------------------------------------------------
Number of units outstanding (000's) 2,043 538
- --------------------------------------------------------------------------------
EQ/MFS Investors Trust
- --------------------------------------------------------------------------------
Unit value $ 8.15 $ 6.77
- --------------------------------------------------------------------------------
Number of units outstanding (000's) 4,865 1,329
- --------------------------------------------------------------------------------
EQ/Money Market
- --------------------------------------------------------------------------------
Unit value $ 28.02 $ 28.26
- --------------------------------------------------------------------------------
Number of units outstanding (000's) 4,639 4,457
- --------------------------------------------------------------------------------
EQ/Putnam Growth & Income Value
- --------------------------------------------------------------------------------
Unit value $ 12.02 $ 9.62
- --------------------------------------------------------------------------------
Number of units outstanding (000's) 4,353 1,383
- --------------------------------------------------------------------------------
EQ/Putnam Voyager
- --------------------------------------------------------------------------------
Unit value $ 11.43 $ 9.35
- --------------------------------------------------------------------------------
Number of units outstanding (000's) 2,285 762
- --------------------------------------------------------------------------------
EQ/Small Company Index
- --------------------------------------------------------------------------------
Unit value $ 12.32 $ 8.57
- --------------------------------------------------------------------------------
Number of units outstanding (000's) 6,188 1,437
- --------------------------------------------------------------------------------
EQ/Technology
- --------------------------------------------------------------------------------
Unit value $ 4.07 $ 2.88
- --------------------------------------------------------------------------------
Number of units outstanding (000's) 6,772 1,429
- --------------------------------------------------------------------------------
Appendix I: Condensed financial information A-3
Appendix II: Purchase considerations for QP contracts
- --------------------------------------------------------------------------------
Trustees who are considering the purchase of an Equitable Accumulator(R)
Plus(SM) QP contract should discuss with their tax advisers whether this is an
appropriate investment vehicle for the employer's plan. Trustees should consider
whether the plan provisions permit the investment of plan assets in the QP
contract, the distribution of such an annuity and the payment of death benefits
in accordance with the requirements of the federal income tax rules. The QP
contract and this prospectus should be reviewed in full, and the following
factors, among others, should be noted. Assuming continued plan qualification
and operation, earnings on qualified plan assets will accumulate value on a
tax-deferred basis even if the plan is not funded by the Equitable
Accumulator(R) Plus(SM) QP contract or another annuity. Therefore, you should
purchase an Equitable Accumulator(R) Plus(SM) QP contract to fund a plan for the
contract's features and benefits other than tax deferral, after considering the
relative costs and benefits of annuity contracts and other types of arrangements
and funding vehicles. This QP contract accepts transfer contributions only and
not regular, ongoing payroll contributions. For 401(k) plans under defined
contribution plans, no employee after-tax contributions are accepted.
We will not accept defined benefit plans. For defined contribution plans, we
will only accept transfers from another defined contribution plan or a change
of investment vehicles in the plan. Only one additional transfer contribution
may be made per contract year. If overfunding of a plan occurs or amounts
attributable to an excess contribution must be withdrawn, withdrawals from the
QP contract may be required. A withdrawal charge and/or market value adjustment
may apply.
Equitable Life will not perform or provide any plan recordkeeping services with
respect to the QP contracts. The plan's administrator will be solely
responsible for performing or providing for all such services. There is no loan
feature offered under the QP contracts, so if the plan provides for loans and a
participant/employee takes a loan from the plan, other plan assets must be used
as the source of the loan and any loan repayments must be credited to other
investment vehicles and/or accounts available under the plan.
Given that required minimum distributions must generally commence from the plan
for annuitants after age 70-1/2, trustees should consider that:
o the QP contract may not be an appropriate purchase for annuitants
approaching or over age 70-1/2;
o although certain provisions of the Temporary Regulations on required minimum
distributions which would have required that the actuarial value of
additional annuity contract benefits be added to the dollar amount credited
for purposes of calculating required minimum distributions have currently
been suspended, these or similar provisions may apply in future years, and
could increase the amounts required to be distributed from the contract; and
o the guaranteed minimum income benefit under the Living Benefit may not be an
appropriate feature for annuitants who are older than 60-1/2 when the
contract is issued.
Finally, because the method of purchasing the QP contract, including the large
initial contribution and the features of the QP contract may appeal more to
plan participants/employees who are older and tend to be highly paid, and
because certain features of the QP contract are available only to plan
participants/employees who meet certain minimum and/or maximum age
requirements, plan trustees should discuss with their advisers whether the
purchase of the QP contract would cause the plan to engage in prohibited
discrimination in contributions, benefits or otherwise.
B-1 Appendix II: Purchase considerations for QP contracts
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 was allocated
on February 13, 2004 to a fixed maturity option with a maturity date of
February 13, 2013 (nine years later) at a hypothetical rate to maturity of
7.00%, resulting in a maturity value of $183,914 on the maturity date. We
further assume that a withdrawal of $50,000 is made four years later on
February 13, 2009.
- -----------------------------------------------------------------------------------------------
Hypothetical Assumed rate to maturity on
February 13, 2009
-----------------------------------------
5.00% 9.00%
- -----------------------------------------------------------------------------------------------
As of February 13, 2009 (before withdrawal)
- -----------------------------------------------------------------------------------------------
(1) Market adjusted amount $144,082 $ 119,503
- -----------------------------------------------------------------------------------------------
(2) Fixed maturity amount $131,104 $ 131,104
- -----------------------------------------------------------------------------------------------
(3) Market value adjustment:
(1) - (2) $ 12,978 $ (11,601)
- -----------------------------------------------------------------------------------------------
On February 13, 2009 (after withdrawal)
- -----------------------------------------------------------------------------------------------
(4) Portion of market value adjustment associated with withdrawal:
(3) x [$50,000/(1)] $ 4,504 $ (4,854)
- -----------------------------------------------------------------------------------------------
(5) Reduction in fixed maturity amount: [$50,000 - (4)] $ 45,496 $ 54,854
- -----------------------------------------------------------------------------------------------
(6) Fixed maturity amount: (2) - (5) $ 85,608 $ 76,250
- -----------------------------------------------------------------------------------------------
(7) Maturity value $120,091 $ 106,965
- -----------------------------------------------------------------------------------------------
(8) Market adjusted amount of (7) $ 94,082 $ 69,503
- -----------------------------------------------------------------------------------------------
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 portion of 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 portion of a positive
market value adjustment is realized. The market value is computed differently
if you withdraw amounts on a date other than the anniversary of the
establishment of the fixed maturity option.
Appendix III: Market value adjustment example C-1
Appendix IV: Guaranteed enhanced death benefit example
- --------------------------------------------------------------------------------
The death benefit under the contracts is equal to the account value or, if
greater, the enhanced death benefit.
The following illustrates the enhanced death benefit calculation. Assuming
$100,000 (plus the applicable 4% credit) is allocated to the variable
investment options (with no allocation to the EQ/Alliance Intermediate
Government Securities, EQ/Money Market, the guaranteed interest option or the
fixed maturity options), no additional contributions, no transfers, no
withdrawals and no loans under a Rollover TSA contract, the enhanced death
benefit for an annuitant age 45 would be calculated as follows:
- ----------------------------------------------------------------------------------------------------
6% roll up to age 85 Annual ratchet to age 85
End of Contract Year Account Value enhanced death benefit enhanced death benefit
- ----------------------------------------------------------------------------------------------------
1 109,200 110,240 109,200
- ----------------------------------------------------------------------------------------------------
2 120,120 116,854 120,120
- ----------------------------------------------------------------------------------------------------
3 134,534 123,866 134,534
- ----------------------------------------------------------------------------------------------------
4 107,628 131,298 134,534
- ----------------------------------------------------------------------------------------------------
5 118,390 139,175 134,534
- ----------------------------------------------------------------------------------------------------
6 132,597 147,526 134,534
- ----------------------------------------------------------------------------------------------------
7 132,597 156,378 134,534
- ----------------------------------------------------------------------------------------------------
The account values for contract years 1 through 7 are based on hypothetical
rates of return of 5.00%, 10.00%, 12.00%, (20.00)%, 10.00%, 12.00% and 0.00%.
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.
6% ROLL-UP TO AGE 85
(1) At the end of contract year 1, and again at the end of contract years 4
through 7, the death benefit will be the enhanced death benefit.
(2) At the end of contract years 2 and 3, the death benefit will be the current
account value since it is higher than the current enhanced death benefit.
ANNUAL RATCHET TO AGE 85
(3) At the end of contract years 1 through 3, the enhanced death benefit is the
current account value.
(4) At the end of contract years 4 through 7, the enhanced death benefit is the
enhanced death benefit at the end of the prior year since it is equal to or
higher than the current account value.
GREATER OF 6% ROLL-UP TO AGE 85 OR THE ANNUAL RATCHET TO AGE 85
The enhanced death benefit under this option for each year shown would be the
greater of the amounts shown under the 6% roll-up to age 85 or the Annual
ratchet to age 85.
D-1 Appendix IV: Guaranteed enhanced death benefit example
Appendix V: Hypothetical illustrations
- --------------------------------------------------------------------------------
ILLUSTRATION OF ACCOUNT VALUES, CASH VALUES AND CERTAIN GUARANTEED MINIMUM
BENEFITS
The following tables illustrate the changes in account value, cash value and
the values of the "greater of 6% Roll up to Age 85 or the Annual Ratchet to Age
85" guaranteed minimum death benefit, the Protection Plus benefit and the
guaranteed minimum income benefit under certain hypothetical circumstances for
an Accumulator Plus contract. The table illustrates the operation of a contract
based on a male, issue age 60, who makes a single$10,00 contribution and takes
no withdrawals. The amounts shown are for the beginning of each contract year
and assume that all of the account value is invested in portfolios that achieve
investment returns at constant gross annual rates of 0% and 6% (i.e., before
any investment management fees, 12b-1 fees or other expenses are deducted from
the underlying portfolio assets). After the deduction of the arithmetic average
of the investment management fees, 12b-1 fees and other expenses of all of the
underlying Portfolios (as described below), the corresponding net annual rates
of return would be (3.08)%, 2.92% for the Accumulator Plus Contract, at the 0%
and 6% gross annual rates, respectively. These net annual rates of return
reflect the trust and separate account level charges but they do not reflect
the charges we deduct from your account value annually for the guaranteed
minimum death benefit, Protection Plus benefit and the Living Benefit features,
as well as the annual administrative charge. If the net annual rates of return
did reflect these charges, the net annual rates of return would be lower;
however, the values shown in the following tables reflect all contract charges.
The values shown under "Lifetime Annual Living Benefit" reflect the lifetime
income that would be guaranteed if the Living Benefit is selected at that
contract anniversary. An "N/A" in these columns indicates that the benefit is
not exercisable in that year. A "0" under any of the Death Benefit and/or
"Lifetime Annual Living Benefit" columns indicates that the contract has
terminated due to insufficient account value and, consequently, the guaranteed
benefit has no value.
With respect to fees and expenses deducted from assets of the underlying
portfolios, the amounts shown in all tables reflect (1) investment management
fees equivalent to an effective annual rate of 0.68%, and (2) an assumed
average asset charge for all other expenses of the underlying portfolios
equivalent to an effective annual rate of 0.85% and (3) 12b-1 fees equivalent
to an effective annual rate of 0.25%. These rates are the arithmetic average
for all portfolios that are available as investment options. In other words,
they are based on the hypothetical assumption that account values are allocated
equally among the variable investment options. The actual rates associated with
any contract will vary depending upon the actual allocation of contract values
among the investment options. These rates do not reflect expense limitation
arrangements in effect with respect to certain of the underlying portfolios as
described in the footnotes to the fee table for the underlying portfolios in
"Fee Table" earlier in this prospectus. With these arrangements, the charges
shown above would be lower. This would result in higher values than those shown
in the following tables.
Because your circumstances will no doubt differ from those in the illustrations
that follow, values under your contract will differ, in most cases
substantially. Upon request, we will furnish you with a personalized
illustration.
Appendix V: Hypothetical illustrations E-1
Variable Deferred Annuity
Accumulator Plus
$100,000 Single Contribution and No Withdrawals
Male, Issue Age 60
Benefits:
Greater of 6% Roll-Up or the Annual Ratchet to Age 85 Guaranteed Minimum
Death Benefit
Protection Plus
Guaranteed Minimum Income Benefit
Greater of 6% Roll
up to age 85
or the Annual
Ratchet to age 85
Guaranteed
Minimum Death
Account Value Cash Value Benefit
------------------- ------------------ -------------------
Age Contract Year 0% 6% 0% 6% 0% 6%
- ----- -------------- --------- --------- -------- --------- --------- ---------
60 1 104,000 104,000 96,000 96,000 104,000 104,000
61 2 99,017 105,236 91,017 97,236 110,240 110,240
62 3 94,131 106,422 87,131 99,422 116,854 116,854
63 4 89,332 107,554 82,332 100,554 123,866 123,866
64 5 84,613 108,624 78,613 102,624 131,298 131,298
65 6 79,966 109,627 74,966 104,627 139,175 139,175
66 7 75,381 110,553 71,381 106,553 147,526 147,526
67 8 70,852 111,397 67,852 108,397 156,378 156,378
68 9 66,370 112,148 66,370 112,148 165,760 165,760
69 10 61,926 112,798 61,926 112,798 175,706 175,706
74 15 39,920 114,176 39,920 114,176 235,134 235,134
79 20 17,454 111,269 17,454 111,269 314,662 314,662
84 25 0 102,013 0 102,013 0 421,089
89 30 0 98,176 0 98,176 0 446,355
94 35 0 96,795 0 96,795 0 446,355
95 36 0 96,499 0 96,499 0 446,355
Lifetime Annual
Guaranteed Minimum Income Benefit
Total Death Benefit ------------------------------------
with Protection Guaranteed Hypothetical
Plus Income Income
------------------- ------------------ -----------------
Age 0% 6% 0% 6% 0% 6%
- ----- --------- --------- --------- -------- --------- -------
60 104,000 104,000 N/A N/A N/A N/A
61 114,336 114,336 N/A N/A N/A N/A
62 123,596 123,596 N/A N/A N/A N/A
63 133,412 133,412 N/A N/A N/A N/A
64 143,817 143,817 N/A N/A N/A N/A
65 154,846 154,846 N/A N/A N/A N/A
66 166,536 166,536 N/A N/A N/A N/A
67 178,929 178,929 N/A N/A N/A N/A
68 192,064 192,064 N/A N/A N/A N/A
69 205,988 205,988 N/A N/A N/A N/A
74 289,188 289,188 14,837 14,837 14,837 14,837
79 400,527 400,527 21,208 21,208 21,208 21,208
84 0 514,506 0 36,214 0 36,214
89 0 539,771 N/A N/A N/A N/A
94 0 539,771 N/A N/A N/A N/A
95 0 539,771 N/A N/A N/A N/A
The hypothetical investment results are illustrative only and should not be
deemed a representation of past or future investment results. Actual investment
results may be more or less than those shown and will depend on a number of
factors, including investment allocations made by the owner. The account value,
cash value and guaranteed benefits for a contract would be different from the
ones shown if the actual gross rate of investment return averaged 0% or 6% over
a period of years, but also fluctuated above or below the average for
individual contract years. We can make no representation that these
hypothetical investment results can be achieved for any one year or continued
over any period of time. In fact, for any given period of time, the investment
results could be negative.
E-2 Appendix V: Hypothetical illustrations
Statement of additional information
- --------------------------------------------------------------------------------
TABLE OF CONTENTS
Page
Tax Information 2
Unit Values 15
Equitable Life's Pending Name Change 15
Custodian and Independent Auditors 15
Distribution of the Contracts 15
Financial Statements 16
How to obtain an Equitable Accumulator(R) Plus(SM) Statement of Additional
Information for
Separate Account No. 49
Send this request form to:
Equitable Accumulator(R) Plus(SM)
P.O. Box 1547
Secaucus, NJ 07096-1547
- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
Please send me an Equitable Accumulator(R) Plus(SM) SAI for Separate Account No.
49 dated May 1, 2004.
- --------------------------------------------------------------------------------
Name
- --------------------------------------------------------------------------------
Address
- --------------------------------------------------------------------------------
City State Zip
(SAI 10AMLF(05/03))
X00701/Plus '02 Series
Equitable Accumulator(R) Elite(SM)
A combination variable and fixed deferred annuity contract
PROSPECTUS DATED MAY 1, 2004
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. You should read the prospectuses for each
Trust, which contain important information about the portfolios.
- --------------------------------------------------------------------------------
WHAT IS THE EQUITABLE ACCUMULATOR(R) ELITE(SM)?
Equitable Accumulator(R) Elite(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 offers income
and death benefit protection. It also offers a number of payout options. You
invest to accumulate value on a tax-deferred basis in one or more of our
variable investment options, the guaranteed interest option, fixed maturity
options or the account for special dollar cost averaging ("investment
options"). This contract may not currently be available in all states. Certain
features and benefits described in this Prospectus may vary in your state; all
features and benefits may not be available in all contracts or all states.
- --------------------------------------------------------------------------------
Variable investment options
- --------------------------------------------------------------------------------
o AXA Aggressive Allocation(1) o EQ/Bernstein Diversified Value
o AXA Conservative Allocation(1) o EQ/Calvert Socially Responsible
o AXA Conservative-Plus Allocation(1) o EQ/Capital Guardian International
o AXA Moderate Allocation(1) o EQ/Capital Guardian Research
o AXA Moderate-Plus Allocation(1) o EQ/Capital Guardian U.S. Equity
o AXA Premier VIP Aggressive Equity o EQ/Emerging Markets Equity
o AXA Premier VIP Core Bond o EQ/Equity 500 Index
o AXA Premier VIP Health Care o EQ/Evergreen Omega
o AXA Premier VIP High Yield o EQ/FI Mid Cap
o AXA Premier VIP International Equity o EQ/FI Small/Mid Cap Value
o AXA Premier VIP Large Cap Core o EQ/J.P. Morgan Core Bond
Equity o EQ/Janus Large Cap Growth
o AXA Premier VIP Large Cap Growth o EQ/Lazard Small Cap Value
o AXA Premier VIP Large Cap Value o EQ/Marsico Focus
o AXA Premier VIP Small/Mid Cap o EQ/Mercury Basic Value Equity
Growth o EQ/Mercury International Value
o AXA Premier VIP Small/Mid Cap Value o EQ/MFS Emerging Growth Companies
o AXA Premier VIP Technology o EQ/MFS Investors Trust
o EQ/Alliance Common Stock o EQ/Money Market
o EQ/Alliance Growth and Income o EQ/Putnam Growth & Income Value
o EQ/Alliance Intermediate Government o EQ/Putnam Voyager
Securities o EQ/Small Company Index
o EQ/Alliance International o EQ/Technology(2)
o EQ/Alliance Premier Growth o Laudus Rosenberg VIT Value Long/
o EQ/Alliance Quality Bond Short Equity(3)
o EQ/Alliance Small Cap Growth o U.S. Real Estate -- Class II
- --------------------------------------------------------------------------------
(1) The "AXA Allocation" portfolio.
(2) Subject to shareholder approval, on or about May 14, 2004, we anticipate
that the EQ/Technology investment option (the "replaced option"), which
invests in a corresponding portfolio of EQ Advisors Trust, will be merged
into the AXA Premier VIP Technology investment option (the "surviving
option"), which invests in a corresponding portfolio of AXA Premier VIP
Trust. At that time, we will move the assets in the replaced option into
the surviving option and all allocation elections to the replaced option
will be considered allocations to the surviving option.
(3) Formerly named "AXA Rosenberg VIT Value Long/Short Equity."
You may allocate amounts to any of the variable investment options. Each
variable investment option is a subaccount of Separate Account No. 49. Each
variable investment option, in turn, invests in a corresponding securities
portfolio ("portfolio") of EQ Advisors Trust, AXA Premier VIP Trust, The
Universal Institutional Funds, Inc. or Barr Rosenberg Variable Insurance 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.
ACCOUNT FOR SPECIAL DOLLAR COST AVERAGING. This account pays fixed interest at
guaranteed rates.
TYPES OF CONTRACTS. We offer the contracts for use as:
o A nonqualified annuity ("NQ") for after-tax contributions only.
o An annuity that is an investment vehicle for a qualified defined contribution
plan ("QP").
o Traditional and Roth Inherited IRA beneficiary continuation contract
("Inherited IRA").
o An individual retirement annuity ("IRA"), either traditional IRA ("Rollover
IRA") or Roth IRA ("Roth Conversion IRA").
o An Internal Revenue Code Section 403(b) Tax-Sheltered Annuity ("TSA") --
("Rollover TSA").
A contribution of at least $10,000 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, 2004, is part of the registration statement.
The SAI is available free of charge. You may request one by writing to our
processing office or calling 1-800-789-7771. 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.
X00684/Elite '02 Series
(R-4/15)
Contents of this Prospectus
- --------------------------------------------------------------------------------
EQUITABLE ACCUMULATOR(R) ELITE(SM)
- --------------------------------------------------------------------------------
Index of key words and phrases 4
Who is Equitable Life? 5
How to reach us 6
Equitable Accumulator(R) Elite(SM) at a glance -- key features 8
- --------------------------------------------------------------------------------
FEE TABLE 10
- --------------------------------------------------------------------------------
Example 13
Condensed financial information 16
- --------------------------------------------------------------------------------
1. CONTRACT FEATURES AND BENEFITS 17
- --------------------------------------------------------------------------------
How you can purchase and contribute to your contract 17
Owner and annuitant requirements 20
How you can make your contributions 20
What are your investment options under the contract? 20
Allocating your contributions 26
Your benefit base 28
Annuity purchase factors 28
Our Living Benefit option 28
Guaranteed minimum death benefit 30
Inherited IRA beneficiary continuation contract 31
Your right to cancel within a certain number of days 32
- --------------------------------------------------------------------------------
2. DETERMINING YOUR CONTRACT'S VALUE 33
- --------------------------------------------------------------------------------
Your account value and cash value 33
Your contract's value in the variable investment options 33
Your contract's value in the guaranteed interest option 33
Your contract's value in the fixed maturity options 33
Your contract's value in the account for special dollar cost
averaging 33
Termination of your contract 33
- --------------------------------------------------------------------------------
3. TRANSFERRING YOUR MONEY AMONG
INVESTMENT OPTIONS 34
- --------------------------------------------------------------------------------
Transferring your account value 34
Disruptive transfer activity 34
Rebalancing your account value 35
- ----------------------
"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
- --------------------------------------------------------------------------------
4. ACCESSING YOUR MONEY 36
- --------------------------------------------------------------------------------
Withdrawing your account value 36
How withdrawals are taken from your account value 37
How withdrawals affect your guaranteed minimum
income benefit and guaranteed minimum death
benefit 37
Loans under Rollover TSA contracts 37
Surrendering your contract to receive its cash value 38
When to expect payments 38
Your annuity payout options 38
- --------------------------------------------------------------------------------
5. CHARGES AND EXPENSES 41
- --------------------------------------------------------------------------------
Charges that Equitable Life deducts 41
Charges that the Trusts deduct 43
Group or sponsored arrangements 44
Other distribution arrangements 44
- --------------------------------------------------------------------------------
6. PAYMENT OF DEATH BENEFIT 45
- --------------------------------------------------------------------------------
Your beneficiary and payment of benefit 45
How death benefit payment is made 45
Beneficiary continuation option 46
- --------------------------------------------------------------------------------
7. TAX INFORMATION 48
- --------------------------------------------------------------------------------
Overview 48
Buying a contract to fund a retirement arrangement 48
Transfers among investment options 48
Taxation of nonqualified annuities 48
Individual retirement arrangements (IRAs) 50
Contributions 51
Special rules for contracts funding qualified plans 52
Tax-Sheltered Annuity contracts (TSAs) 52
Federal and state income tax withholding and
information reporting 53
Impact of taxes to Equitable Life 54
- --------------------------------------------------------------------------------
8. MORE INFORMATION 55
- --------------------------------------------------------------------------------
About our Separate Account No. 49 55
About the Trusts 55
About our fixed maturity options 55
About the general account 56
About other methods of payment 56
Dates and prices at which contract events occur 57
About your voting rights 58
About legal proceedings 58
About our independent auditors 58
Financial statements 58
Transfers of ownership, collateral assignments, loans
and borrowing 58
Distribution of the contracts 58
- --------------------------------------------------------------------------------
9. INCORPORATION OF CERTAIN DOCUMENTS BY REFERENCE 60
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
APPENDICES
- --------------------------------------------------------------------------------
I -- Condensed financial information A-1
II -- Purchase considerations for QP contracts B-1
III -- Market value adjustment example C-1
IV -- Enhanced death benefit example D-1
V -- Hypothetical illustrations E-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 in
Term Prospectus
account value 33
administrative charge 41
annual administrative charge 41
annual ratchet enhanced death benefit 28
annuitant 17
annuity maturity date 40
annuity payout options 38
annuity purchase factors 28
automatic investment program 57
beneficiary 45
Beneficiary Continuation Option ("BCO") 46
benefit base 28
business day 57
cash value 33
charges for state premium and other applicable taxes 43
contract date 9
contract date anniversary 9
contract year 9
contributions to Roth IRAs 51
regular contributions 51
rollovers and direct transfers 51
conversion contributions 51
contributions to Traditional IRAs 51
regular contributions 51
rollovers and transfers 51
disability, terminal illness or confinement to nursing home 42
disruptive transfer activity 34
distribution charge 41
EQAccess 6
ERISA 37
fixed-dollar option 27
fixed maturity options 25
free look 32
free withdrawal amount 42
general account 56
general dollar cost averaging 27
guaranteed interest option 25
guaranteed minimum death benefit 30
guaranteed minimum income benefit 29
Inherited IRA cover
investment options cover
investment simplifier 27
IRA cover
IRS 48
Page in
Term Prospectus
lifetime required minimum distribution withdrawals 37
living benefit 28
living benefit charge 43
loan reserve account 38
loans from Rollover TSAs 37
lump sum withdrawals 36
market adjusted amount 25
market timing 34
market value adjustment 25
maturity dates 25
maturity value 25
mortality and expense risks charge 41
NQ cover
participant 20
portfolio cover
Principal assurance allocation 26
processing office 6
Protection Plus 30
Protection Plus charge 43
QP cover
rate to maturity 25
Rebalancing 35
roll-up death benefit 28
Rollover IRA cover
Rollover TSA cover
Roth Conversion IRA cover
Roth IRA cover
SAI cover
SEC cover
self-directed allocation 26
Separate Account 49 55
special dollar cost averaging 26
Standard death benefit 28
substantially equal withdrawals 36
Successor owner and annuitant 45
systematic withdrawals 36
TOPS 6
TSA cover
Traditional IRA 50
Trusts cover
unit 33
variable investment options 20
wire transmittals and electronic applications 56
withdrawal charge 41
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 use different words, they have the same meaning in this Prospectus as in the
contract. Your financial professional can provide further explanation about
your contract or supplemental materials.
- --------------------------------------------------------------------------------------
Prospectus Contract or Supplemental Materials
- --------------------------------------------------------------------------------------
fixed maturity options Guarantee Periods (Guaranteed Fixed Interest Accounts
in supplemental materials)
variable investment options Investment Funds
account value Annuity Account Value
rate to maturity Guaranteed Rates
unit Accumulation Unit
Living Benefit Guaranteed Minimum Income Benefit
Guaranteed Interest Option Guaranteed Interest Account
- --------------------------------------------------------------------------------------
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 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
$508.31 billion in assets as of December 31, 2003. 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.
Effective on or about September 7, 2004, we expect, subject to regulatory
approval, to change the name of "The Equitable Life Assurance Society of the
United States" to "AXA Equitable Life Insurance Company." When the name change
becomes effective, all references in any current prospectus, prospectus
supplement or statement of additional information to "The Equitable Life
Assurance Society of the United States" will become references to "AXA
Equitable Life Insurance Company." Accordingly, all references to "Equitable
Life" or "Equitable" will become references to "AXA Equitable."
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 CONTRIBUTIONS SENT BY REGULAR MAIL
- --------------------------------------------------------------------------------
Equitable Accumulator(R) Elite(SM)
P.O. Box 13014
Newark, NJ 07188-0014
- --------------------------------------------------------------------------------
FOR CONTRIBUTIONS SENT BY EXPRESS DELIVERY
- --------------------------------------------------------------------------------
Equitable Accumulator(R) Elite(SM)
c/o Bank One, N.A.
300 Harmon Meadow Boulevard, 3rd Floor
Attn: Box 13014
Secaucus, NJ 07094
- --------------------------------------------------------------------------------
FOR ALL OTHER COMMUNICATIONS (E.G., REQUESTS FOR TRANSFERS, WITHDRAWALS, OR
REQUIRED NOTICES) SENT BY REGULAR MAIL
- --------------------------------------------------------------------------------
Equitable Accumulator(R) Elite(SM)
P.O. Box 1547
Secaucus, NJ 07096-1547
- --------------------------------------------------------------------------------
FOR ALL OTHER COMMUNICATIONS (E.G., REQUESTS FOR TRANSFERS, WITHDRAWALS, OR
REQUIRED NOTICES) SENT BY EXPRESS DELIVERY
- --------------------------------------------------------------------------------
Equitable Accumulator(R) Elite(SM)
200 Plaza Drive, 4th Floor
Secaucus, NJ 07094
- --------------------------------------------------------------------------------
REPORTS WE PROVIDE:
- --------------------------------------------------------------------------------
o written confirmation of financial transactions;
o statement of your contract values at the close of each calendar year and any
calendar quarter in which there was a financial transaction; and
o annual statement of your contract values as of the close of the contract
year, including notification of eligibility to exercise the guaranteed
minimum income benefit, if applicable.
- --------------------------------------------------------------------------------
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 (not available through
EQAccess);
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 investment
options;
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 1-888-909-7770. If you are a client with AXA
Advisors you may use EQAccess by visiting our web site at
http://www.axaonline.com and clicking on EQAccess. All other clients may access
EQAccess by visiting our other web site at http://www.equitable.com. 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 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 (1-800-789-7771) to speak with one of our
customer service representatives. Our customer service representatives are
available on any business day from 8:30 a.m. until 5:30 p.m., Eastern time.
WE REQUIRE THAT THE FOLLOWING TYPES OF COMMUNICATIONS BE ON SPECIFIC FORMS WE
PROVIDE FOR THAT PURPOSE:
(1) authorization for telephone transfers by your financial professional
(available only for contracts distributed through AXA Distributors);
(2) conversion of a traditional IRA to a Roth Conversion IRA contract;
6 Who is Equitable Life?
(3) election of the automatic investment program;
(4) election of the rebalancing program;
(5) requests for loans under Rollover TSA contracts;
(6) spousal consent for loans under Rollover TSA contracts;
(7) requests for withdrawals or surrenders from Rollover TSA contracts;
(8) tax withholding elections;
(9) election of the beneficiary continuation option;
(10) IRA contribution recharacterizations;
(11) certain section 1035 exchanges;
(12) direct transfers; and
(13) exercise of Guaranteed minimum income benefit.
WE ALSO HAVE SPECIFIC FORMS THAT WE RECOMMEND YOU USE FOR THE FOLLOWING TYPES
OF REQUESTS:
(1) address changes;
(2) beneficiary changes;
(3) transfers between investment options;
(4) contract surrender and withdrawal requests;
(5) death claims;
(6) general dollar cost averaging (including the fixed dollar and interest
sweep options); and
(7) special dollar cost averaging.
TO CANCEL OR CHANGE 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 (including the fixed dollar and interest
sweep options);
(3) rebalancing;
(4) special dollar cost averaging;
(5) substantially equal withdrawals;
(6) systematic withdrawals; and
(7) 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
Equitable Accumulator(R) Elite(SM) at a glance -- key features
- --------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
Professional investment Equitable Accumulator(R)Elite(SM)'s variable investment options invest in different portfolios managed
management by professional investment advisers.
- ------------------------------------------------------------------------------------------------------------------------------------
Fixed maturity options o Fixed maturity options with maturities ranging from approximately 1 to 10 years (subject to
availability).
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. If you withdraw or transfer only a
portion of a fixed maturity amount, 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 also applies.
- ------------------------------------------------------------------------------------------------------------------------------------
Guaranteed interest o Principal and interest guarantees.
option
o Interest rates set periodically.
- ------------------------------------------------------------------------------------------------------------------------------------
Account for special dollar Available for dollar cost averaging all or a portion of any eligible contribution to your contract.
cost averaging
- ------------------------------------------------------------------------------------------------------------------------------------
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) or Tax Sheltered
Annuity (TSA) or to fund an employer retirement plan (QP or Qualified Plan), 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 compared 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 and in the SAI.)
- ------------------------------------------------------------------------------------------------------------------------------------
Living Benefit protection The Living Benefit provides a guaranteed minimum income benefit. The guaranteed minimum income benefit
provides income protection during the annuitant's life once the owner elects to annuitize the contract.
- ------------------------------------------------------------------------------------------------------------------------------------
Contribution amounts o Initial minimum: $10,000
o Additional minimum: $500 (NQ, QP and Rollover TSA contracts)
$100 monthly and $300 quarterly under our automatic investment program
(NQ contracts)
$1,000 (Inherited IRA contracts)
$50 (IRA contracts)
Maximum contribution limitations may apply. In general, contributions are limited to $1.5 million.
- ------------------------------------------------------------------------------------------------------------------------------------
Access to your money o Lump sum withdrawals
o Several withdrawal options on a periodic basis
o Loans under Rollover TSA contracts
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 tax penalty.
- ------------------------------------------------------------------------------------------------------------------------------------
Payout options o Fixed annuity payout options
o Variable Immediate Annuity payout options
o Income Manager(R) payout options
- ------------------------------------------------------------------------------------------------------------------------------------
8 Equitable Accumulator(R) Elite(SM) at a glance -- key features
- ------------------------------------------------------------------------------------------------------------------------------------
Additional features o Guaranteed minimum death benefit options
o Dollar cost averaging
o Automatic investment program
o Account value rebalancing (quarterly, semiannually, and annually)
o Free transfers
o Waiver of withdrawal charge for disability, terminal illness, or confinement to a nursing home
o Protection Plus, an optional death benefit available under certain contracts (subject to state
availability)
- ------------------------------------------------------------------------------------------------------------------------------------
Fees and charges o Daily charges on amounts invested in the variable investment options for mortality and expense risks,
administrative charges, and distribution charges at an annual rate of 1.60%.
o The charges for the guaranteed minimum death benefits range from 0.0% to 0.60%, annually, of the
applicable benefit base. The benefit base is described under "Your benefit base" in "Contract features and
benefits" later in this Prospectus.
o Annual 0.60% of the applicable benefit base charge for the optional Living Benefit until you exercise your
guaranteed minimum income benefit, elect another annuity payout option, or the contract date anniversary
after the annuitant reaches age 85, whichever occurs first.
o If your account value at the end of the contract year is less than $50,000, we deduct an annual
administrative charge equal to $30, or during the first two contract years, 2% of your account value, if
less. If your account value is, on the contract date anniversary, $50,000 or more, we will not deduct the
charge.
o Annual 0.35% Protection Plus charge for this optional death benefit.
o No sales charge deducted at the time you make contributions. During the first four contract years following
a contribution, a charge of up to 8% will be deducted from amounts that you withdraw that exceed 10% of
your account value. We use the account value at the beginning of each contract year to calculate the 10%
amount available. There is no withdrawal charge in the fifth 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." For example, if your contract date is May 1, your contract date
anniversary is April 30.
-------------------------------------------------------------------------------------------------------------
o We deduct a charge designed to approximate certain taxes that may be imposed on us, such as premium
taxes in your state. This 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 the Variable Immediate Annuity payout
options.
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 0.10% to 1.50% annually,
12b-1 fees of either 0.25% or 0.35% annually and other expenses.
- ------------------------------------------------------------------------------------------------------------------------------------
Annuitant issue ages NQ: 0-85
Rollover IRA, Roth Conversion IRA and Rollover TSA: 20-85
Inherited IRA: 0-70
QP: 20-75
- ------------------------------------------------------------------------------------------------------------------------------------
The above is not a complete description of all material provisions of the
contract. In some cases, restrictions or exceptions apply. Also, all features
of the contract 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.
Other contracts
We offer a variety of fixed and variable annuity contracts. They may offer
features, including investment options, credits, fees and/or charges that are
different from those in the contracts 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.
Equitable Accumulator(R) Elite(SM) at a glance -- key features 9
Fee table
- --------------------------------------------------------------------------------
The following tables describe the fees and expenses that you will pay when
buying, owning, and surrendering the contract. Each of the charges and expenses
is more fully described in "Charges and expenses" later in this Prospectus.
The first table describes fees and expenses that you will pay at the time that
you surrender the contract or if you make certain withdrawals or apply your
cash value to certain payout options or if you purchase a Variable Immediate
Annuity. Charges designed to approximate certain taxes that may be imposed on
us, such as premium taxes in your state, may also apply. Charges for certain
features shown in the fee table are mutually exclusive.
- ------------------------------------------------------------------------------------------------------------------------------------
Charges we deduct from your account value at the time you request certain transactions
- ------------------------------------------------------------------------------------------------------------------------------------
Maximum withdrawal charge as a percentage of contributions with-
drawn (deducted if you surrender your contract or make certain
withdrawals or apply your cash value to certain payout options).(1) 8.00%
Charge if you elect a Variable Immediate Annuity payout option $350
- ------------------------------------------------------------------------------------------------------------------------------------
The next table describes the fees and expenses that you will pay periodically
during the time that you own the contract, not including the underlying trust
portfolio fees and expenses.
- ------------------------------------------------------------------------------------------------------------------------------------
Charges we deduct from your variable investment options expressed as an annual percentage of daily net assets
- ------------------------------------------------------------------------------------------------------------------------------------
Mortality and expense risks 1.10%
Administrative 0.25%
Distribution 0.25%
----
Total annual expenses 1.60%
- ------------------------------------------------------------------------------------------------------------------------------------
Charges we deduct from your account value on each contract date anniversary
- ------------------------------------------------------------------------------------------------------------------------------------
Maximum annual administrative charge
If your account value on a contract date anniversary is less than
$50,000(2) $ 30
If your account value on a contract date anniversary is $50,000
or more $ 0
- ------------------------------------------------------------------------------------------------------------------------------------
Charges we deduct from your account value each year if you elect the optional benefit
- ------------------------------------------------------------------------------------------------------------------------------------
Guaranteed minimum death benefit charge (calculated as a percentage of the applicable benefit base. Deducted annually on each
contract date anniversary for which the benefit is in effect.)
Standard death benefit 0.00%
Annual Ratchet to age 85 0.30% of the Annual Ratchet to age 85
benefit base
6% Roll-up to age 85 0.45% of the 6% Roll-up to age 85
benefit base
Greater of 6% Roll-up to age 85 or Annual Ratchet to age 85 0.60% of the greater of the 6% Roll-up to
age 85 benefit base or the Annual
Ratchet to age 85 benefit base, as
applicable
- ------------------------------------------------------------------------------------------------------------------------------------
Living Benefit charge (calculated as a percentage of the applicable
benefit base. Deducted annually on each contract date anniversary for
which the benefit is in effect.) 0.60%
- ------------------------------------------------------------------------------------------------------------------------------------
Protection Plus benefit charge (calculated as a percentage of the
account value. Deducted annually on each contract date anniversary
for which the benefit is in effect.) 0.35%
- ------------------------------------------------------------------------------------------------------------------------------------
10 Fee table
You also bear your proportionate share of all fees and expenses paid by a
"Portfolio" that corresponds to any variable investment option you are using.
This table shows the lowest and highest total operating expenses charged by any
of the Portfolios that you will pay periodically during the time that you own
the contract. These fees and expenses are reflected in the Portfolio's net
asset value each day. Therefore, they reduce the investment return of the
Portfolio and the related variable investment option. Actual fees and expenses
are likely to fluctuate from year to year. More detail concerning each
Portfolio's fees and expenses is contained in the Trust prospectus for the
Portfolio.
- ------------------------------------------------------------------------------------------------------------------------------------
Portfolio operating expenses expressed as an annual percentage of daily net assets
- ------------------------------------------------------------------------------------------------------------------------------------
Total Annual Portfolio Operating Expenses for 2003 (expenses that are deducted Lowest Highest
from Portfolio assets including management fees, 12b-1 fees, service fees, and/or ------ -------
other expenses)(3) 0.56% 10.23%
This table shows the fees and expenses for 2003 as an annual percentage of each
Portfolio's daily average net assets.
- ------------------------------------------------------------------------------------------------------------------------------------
Total Net Total
Annual Fee Waiv- Annual
Underlying Expenses ers and/or Expenses
Manage- Portfolio (Before Expense After
ment 12b-1 Other Fees and Expense Reimburse- Expense
Portfolio Name Fees(4) Fees(5) Expenses(6) Expenses(7) Limitation) ments(8) Limitations
- ------------------------------------------------------------------------------------------------------------------------------------
AXA PREMIER VIP TRUST:
- ------------------------------------------------------------------------------------------------------------------------------------
AXA Aggressive Allocation 0.10% 0.25% 5.91% 1.08% 7.34% (5.98)% 1.36%
AXA Conservative Allocation 0.10% 0.25% 9.04% 0.84% 10.23% (9.13)% 1.10%
AXA Conservative-Plus Allocation 0.10% 0.25% 4.13% 0.88% 5.36% (4.21)% 1.15%
AXA Moderate Allocation 0.10% 0.25% 0.39% 0.86% 1.60% (0.43)% 1.17%
AXA Moderate-Plus Allocation 0.10% 0.25% 1.77% 1.13% 3.25% (1.87)% 1.38%
AXA Premier VIP Aggressive Equity 0.62% 0.25% 0.15% -- 1.02% -- 1.02%
AXA Premier VIP Core Bond 0.60% 0.25% 0.26% -- 1.11% (0.16)% 0.95%
AXA Premier VIP Health Care 1.20% 0.25% 0.48% -- 1.93% (0.08)% 1.85%
AXA Premier VIP High Yield 0.59% 0.25% 0.16% -- 1.00% -- 1.00%
AXA Premier VIP International Equity 1.05% 0.25% 0.73% -- 2.03% (0.23)% 1.80%
AXA Premier VIP Large Cap Core Equity 0.90% 0.25% 0.52% -- 1.67% (0.32)% 1.35%
AXA Premier VIP Large Cap Growth 0.90% 0.25% 0.43% -- 1.58% (0.23)% 1.35%
AXA Premier VIP Large Cap Value 0.90% 0.25% 0.43% -- 1.58% (0.23)% 1.35%
AXA Premier VIP Small/Mid Cap Growth 1.10% 0.25% 0.35% -- 1.70% (0.10)% 1.60%
AXA Premier VIP Small/Mid Cap Value 1.10% 0.25% 0.31% -- 1.66% (0.06)% 1.60%
AXA Premier VIP Technology 1.20% 0.25% 0.83% -- 2.28% (0.43)% 1.85%
- ------------------------------------------------------------------------------------------------------------------------------------
EQ ADVISORS TRUST:
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/Alliance Common Stock 0.48% 0.25% 0.06% -- 0.79% -- 0.79%
EQ/Alliance Growth and Income 0.57% 0.25% 0.06% -- 0.88% -- 0.88%
EQ/Alliance Intermediate Government Securities 0.49% 0.25% 0.08% -- 0.82% -- 0.82%
EQ/Alliance International 0.74% 0.25% 0.13% -- 1.12% (0.02)% 1.10%
EQ/Alliance Premier Growth 0.90% 0.25% 0.05% -- 1.20% (0.04)% 1.16%
EQ/Alliance Quality Bond 0.52% 0.25% 0.06% -- 0.83% -- 0.83%
EQ/Alliance Small Cap Growth 0.75% 0.25% 0.07% -- 1.07% -- 1.07%
EQ/Bernstein Diversified Value 0.64% 0.25% 0.06% -- 0.95% 0.00% 0.95%
EQ/Calvert Socially Responsible 0.65% 0.25% 0.55% -- 1.45% (0.40)% 1.05%
EQ/Capital Guardian International 0.85% 0.25% 0.21% -- 1.31% (0.11)% 1.20%
EQ/Capital Guardian Research 0.65% 0.25% 0.07% -- 0.97% (0.02)% 0.95%
EQ/Capital Guardian U.S. Equity 0.65% 0.25% 0.07% -- 0.97% (0.02)% 0.95%
EQ/Emerging Markets Equity 1.15% 0.25% 0.40% -- 1.80% 0.00% 1.80%
EQ/Equity 500 Index 0.25% 0.25% 0.06% -- 0.56% -- 0.56%
EQ/Evergreen Omega 0.65% 0.25% 0.25% -- 1.15% (0.20)% 0.95%
EQ/FI Mid Cap 0.70% 0.25% 0.08% -- 1.03% (0.03)% 1.00%
EQ/FI Small/Mid Cap Value 0.75% 0.25% 0.10% -- 1.10% 0.00% 1.10%
EQ/Janus Large Cap Growth 0.90% 0.25% 0.09% -- 1.24% (0.09)% 1.15%
EQ/J.P. Morgan Core Bond 0.44% 0.25% 0.08% -- 0.77% 0.00% 0.77%
EQ/Lazard Small Cap Value 0.75% 0.25% 0.10% -- 1.10% 0.00% 1.10%
EQ/Marsico Focus 0.90% 0.25% 0.07% -- 1.22% (0.07)% 1.15%
EQ/Mercury Basic Value Equity 0.60% 0.25% 0.07% -- 0.92% 0.00% 0.92%
EQ/Mercury International Value 0.85% 0.25% 0.16% -- 1.26% (0.01)% 1.25%
EQ/MFS Emerging Growth Companies 0.65% 0.25% 0.07% -- 0.97% -- 0.97%
EQ/MFS Investors Trust 0.60% 0.25% 0.11% -- 0.96% (0.01)% 0.95%
EQ/Money Market 0.33% 0.25% 0.06% -- 0.64% -- 0.64%
- ------------------------------------------------------------------------------------------------------------------------------------
Fee table 11
- ------------------------------------------------------------------------------------------------------------------------------------
Total Net Total
Annual Fee Waiv- Annual
Underlying Expenses ers and/or Expenses
Manage- Portfolio (Before Expense After
ment 12b-1 Other Fees and Expense Reimburse- Expense
Portfolio Name Fees(4) Fees(5) Expenses(6) Expenses(7) Limitation) ments(8) Limitations
- ------------------------------------------------------------------------------------------------------------------------------------
EQ ADVISORS TRUST:
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/Putnam Growth & Income Value 0.60% 0.25% 0.10% -- 0.95% 0.00% 0.95%
EQ/Putnam Voyager 0.65% 0.25% 0.13% 1.03% (0.08)% 0.95%
EQ/Small Company Index 0.25% 0.25% 0.35% -- 0.85% 0.00% 0.85%
EQ/Technology 0.90% 0.25% 0.09% -- 1.24% (0.09)% 1.15%
- ------------------------------------------------------------------------------------------------------------------------------------
BARR ROSENBERG VARIABLE INSURANCE TRUST:
- ------------------------------------------------------------------------------------------------------------------------------------
Laudus Rosenberg VIT Value Long/Short Equity 1.50% 0.25% 5.80% -- 7.55% (4.57)% 2.98%
- ------------------------------------------------------------------------------------------------------------------------------------
THE UNIVERSAL INSTITUTIONAL FUNDS, INC.:
- ------------------------------------------------------------------------------------------------------------------------------------
U.S. Real Estate -- Class II 0.80% 0.35% 0.31% -- 1.46% (0.11)% 1.35%
- ------------------------------------------------------------------------------------------------------------------------------------
Notes:
(1) Deducted upon a withdrawal of amounts in excess of the 10% free
withdrawal amount, if applicable
Contract
The withdrawal charge percentage we use is determined by the contract year in which you Year
make the withdrawal or surrender your contract. For each contribution, we consider the
contract year in which we receive that contribution to be "contract year 1") 1...............................8.00%
2...............................7.00%
3...............................6.00%
4...............................5.00%
5+..............................0.00%
(2) During the first two contract years this charge, if it applies, is equal
to the lesser of $30 or 2% of your account value. Thereafter, the charge is
$30 for each contract year.
(3) "Total Annual Portfolio Operating Expenses" are based, in part, on
estimated amounts for options added during the fiscal year 2003 and for the
underlying portfolios.
(4) The management fees for each Portfolio cannot be increased without a vote
of that Portfolio's shareholders. See footnote (8) for any expense
limitation agreement information.
(5) 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.
(6) Other expenses shown are those incurred in 2003. The amounts shown as
"Other Expenses" will fluctuate from year to year depending on actual
expenses. See footnote (8) for any expense limitation agreement information.
(7) The AXA Allocation variable investment options invest in corresponding
portfolios of the AXA Premier VIP Trust. Each AXA Allocation portfolio in
turn invests in shares of other portfolios of the EQ Advisors Trust and AXA
Premier VIP Trust ("the underlying portfolios"). Amounts shown reflect each
AXA Allocation portfolio's pro rata share of the fees and expenses of the
various underlying portfolios in which it invests. The fees and expenses
have been estimated based on the respective weighted investment allocations
as of 12/31/03. A "--" indicates that the listed portfolio does not invest
in underlying portfolios, i.e., it is not an allocation portfolio.
(8) The amounts shown reflect any fee waivers and/or expense reimbursements
that applied to each Portfolio. A "-" indicates that there is no expense
limitation in effect. "0.00%" indicates that the expense limitation
arrangement did not result in a fee waiver reimbursement. Equitable Life,
the investment manager of AXA Premier VIP Trust and EQ Advisors Trust, has
entered into Expense Limitation Agreements with respect to certain
Portfolios, which are effective through April 30, 2005. Under these
agreements Equitable Life has agreed to waive or limit its fees and assume
other expenses of certain Portfolios, if necessary, in an amount that limits
each affected Portfolio's total Annual Expenses (exclusive of interest,
taxes, brokerage commissions, capitalized expenditures and extraordinary
expenses) to not more than specified amounts. 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. Morgan Stanley Investment Management Inc.,
which does business in certain instances as "Van Kampen," is the manager of
The Universal Institutional Funds, Inc. - U.S. Real Estate Portfolio - Class
II, and has voluntarily agreed to reduce its management fee and/or reimburse
the Portfolio so that total annual operating expenses of the Portfolio
(exclusive of the investment related expenses, such as foreign country tax
expense and interest expense on amounts borrowed) are not more than
specified amounts. Van Kampen reserves the right to terminate any waiver
and/or reimbursement at any time without notice. Charles Schwab Investment
Management, Inc., the manager of the Barr Rosenberg Variable Insurance Trust
-- Laudus Rosenberg VIT Value Long/Short Equity Portfolio, has voluntarily
agreed to reimburse expenses in excess of specified amounts. See this
Prospectus for each applicable underlying Trust for more information about
the arrangements. In addition, a portion of the brokerage commissions of
certain portfolios of EQ Advisors Trust Portfolio and AXA Premier VIP Trust
portfolio is used to reduce the applicable Portfolio's expenses. If the
above table reflected both the expense limitation arrangements plus the
portion of the brokerage commissions used to reduce portfolio expenses, the
net expenses would be as shown in the table below:
12 Fee table
---------------------------------------------
Portfolio Name
---------------------------------------------
AXA Aggressive Allocation 0.95%
---------------------------------------------
AXA Conservative Allocation 0.73%
---------------------------------------------
AXA Conservative-Plus Allocation 0.78%
---------------------------------------------
AXA Moderate Allocation 0.79%
---------------------------------------------
AXA Moderate-Plus Allocation 0.99%
---------------------------------------------
AXA Premier VIP Aggressive Equity 0.95%
---------------------------------------------
AXA Premier VIP Health Care 1.84%
---------------------------------------------
AXA Premier VIP International Equity 1.73%
---------------------------------------------
AXA Premier VIP Large Cap Core Equity 1.32%
---------------------------------------------
AXA Premier VIP Large Cap Growth 1.32%
---------------------------------------------
AXA Premier VIP Large Cap Value 1.28%
---------------------------------------------
AXA Premier VIP Small/Mid Cap Growth 1.46%
---------------------------------------------
AXA Premier VIP Small/Mid Cap Value 1.52%
---------------------------------------------
AXA Premier VIP Technology 1.70%
---------------------------------------------
EQ/Alliance Common Stock 0.77%
---------------------------------------------
EQ/Alliance Growth and Income 0.85%
---------------------------------------------
EQ/Alliance Premier Growth 1.15%
---------------------------------------------
EQ/Alliance Small Cap Growth 1.03%
---------------------------------------------
EQ/Calvert Socially Responsible 1.00%
---------------------------------------------
EQ/Capital Guardian International 1.18%
---------------------------------------------
EQ/Capital Guardian Research 0.93%
---------------------------------------------
EQ/Capital Guardian U.S. Equity 0.93%
---------------------------------------------
EQ/Emerging Markets Equity 1.78%
---------------------------------------------
EQ/Evergreen Omega 0.84%
---------------------------------------------
EQ/FI Mid Cap 0.88%
---------------------------------------------
EQ/FI Small/Mid Cap Value 1.04%
---------------------------------------------
EQ/Lazard Small Cap Value 1.00%
---------------------------------------------
EQ/Marsico Focus 1.10%
---------------------------------------------
EQ/Mercury Basic Value Equity 0.91%
---------------------------------------------
EQ/Mercury International Value 1.18%
---------------------------------------------
EQ/MFS Emerging Growth Companies 0.96%
---------------------------------------------
EQ/MFS Investors Trust 0.94%
---------------------------------------------
EQ/Putnam Growth & Income Value 0.93%
---------------------------------------------
EQ/Putnam Voyager 0.93%
---------------------------------------------
EQ/Technology 1.01%
---------------------------------------------
EXAMPLE
This example is intended to help you compare the cost of investing in the
contract with the cost of investing in other variable annuity contracts. These
costs include contract owner transaction expenses, contract fees, separate
account annual expenses, and underlying trust fees and expenses (including the
underlying portfolio fees and expenses).
The example below shows the expenses that a hypothetical contract owner (who
has elected the Living Benefit with the enhanced death benefit that provides
for the greater of the 6% Roll-up or the Annual Ratchet to age 85 and
Protection Plus) would pay in the situations illustrated. 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 $1.60 per $10,000.
The fixed maturity options, guaranteed interest option and the account for
special dollar cost averaging are not covered by the fee table and examples.
However, the annual administrative charge, the withdrawal charge, the charge
for any optional benefits and the charge if you elect a Variable Immediate
Annuity payout option do apply to the fixed maturity options, guaranteed
interest option and the account for special dollar cost averaging. 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.
This example 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 example is not an
estimate or guarantee of future investment performance.
The example assumes that you invest $10,000 in the contract for the time
periods indicated. The example also assumes your investment has a 5% return
each year. This example 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 example is not
an estimate or guarantee of future investment performance. Although your actual
costs may be higher or lower based on these assumptions, your costs would be:
Fee table 13
- ------------------------------------------------------------------------------------------------------------------------------------
If you surrender your contract at the end of the
applicable time period
- ------------------------------------------------------------------------------------------------------------------------------------
Portfolio Name 1 year 3 years 5 years 10 years
- ------------------------------------------------------------------------------------------------------------------------------------
AXA PREMIER VIP TRUST:
- ------------------------------------------------------------------------------------------------------------------------------------
AXA Aggressive Allocation $ 1,904.54 $ 3,761.79 $ 5,032.92 $ 9,010.92
AXA Conservative Allocation $ 2,207.51 $ 4,505.40 $ 6,034.18 $ 10,088.86
AXA Conservative-Plus Allocation $ 1,696.41 $ 3,221.34 $ 4,260.30 $ 8,015.61
AXA Moderate Allocation $ 1,301.95 $ 2,128.71 $ 2,587.10 $ 5,381.71
AXA Moderate-Plus Allocation $ 1,475.08 $ 2,619.45 $ 3,356.69 $ 6,673.83
AXA Premier VIP Aggressive Equity $ 1,240.68 $ 1,950.77 $ 2,300.90 $ 4,866.40
AXA Premier VIP Core Bond $ 1,250.13 $ 1,978.35 $ 2,345.51 $ 4,947.96
AXA Premier VIP Health Care $ 1,336.21 $ 2,227.23 $ 2,743.93 $ 5,656.11
AXA Premier VIP High Yield $ 1,238.58 $ 1,944.63 $ 2,290.96 $ 4,848.16
AXA Premier VIP International Equity $ 1,346.71 $ 2,257.28 $ 2,791.54 $ 5,738.28
AXA Premier VIP Large Cap Core Equity $ 1,308.92 $ 2,148.79 $ 2,619.17 $ 5,438.28
AXA Premier VIP Large Cap Growth $ 1,299.47 $ 2,121.54 $ 2,575.65 $ 5,361.44
AXA Premier VIP Large Cap Value $ 1,299.47 $ 2,121.54 $ 2,575.65 $ 5,361.44
AXA Premier VIP Small/Mid Cap Growth $ 1,312.07 $ 2,157.87 $ 2,633.64 $ 5,463.72
AXA Premier VIP Small/Mid Cap Value $ 1,307.87 $ 2,145.77 $ 2,614.34 $ 5,429.78
AXA Premier VIP Technology $ 1,372.96 $ 2,332.12 $ 2,909.62 $ 5,939.84
- ------------------------------------------------------------------------------------------------------------------------------------
EQ ADVISORS TRUST:
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/Alliance Common Stock $ 1,216.53 $ 1,880.03 $ 2,186.07 $ 4,654.38
EQ/Alliance Growth and Income $ 1,225.98 $ 1,907.75 $ 2,231.14 $ 4,737.96
EQ/Alliance Intermediate Government Securities $ 1,219.68 $ 1,889.28 $ 2,201.12 $ 4,682.33
EQ/Alliance International $ 1,251.18 $ 1,981.41 $ 2,350.46 $ 4,956.98
EQ/Alliance Premier Growth $ 1,259.58 $ 2,005.88 $ 2,389.95 $ 5,028.75
EQ/Alliance Quality Bond $ 1,220.73 $ 1,892.36 $ 2,206.13 $ 4,691.62
EQ/Alliance Small Cap Growth $ 1,245.93 $ 1,966.10 $ 2,325.70 $ 4,911.81
EQ/Bernstein Diversified Value $ 1,233.33 $ 1,929.28 $ 2,266.07 $ 4,802.41
EQ/Calvert Socially Responsible $ 1,285.82 $ 2,082.08 $ 2,512.47 $ 5,249.15
EQ/Capital Guardian International $ 1,271.13 $ 2,039.46 $ 2,444.03 $ 5,126.45
EQ/Capital Guardian Research $ 1,235.43 $ 1,935.42 $ 2,276.03 $ 4,820.74
EQ/Capital Guardian U.S. Equity $ 1,235.43 $ 1,935.42 $ 2,276.03 $ 4,820.74
EQ/Emerging Markets Equity $ 1,322.57 $ 2,188.07 $ 2,681.73 $ 5,547.95
EQ/Equity 500 Index $ 1,192.39 $ 1,808.94 $ 2,070.08 $ 4,437.14
EQ/Evergreen Omega $ 1,254.33 $ 1,990.60 $ 2,365.28 $ 4,983.97
EQ/FI Mid Cap $ 1,241.73 $ 1,953.84 $ 2,305.86 $ 4,875.50
EQ/FI Small/Mid Cap Value $ 1,249.08 $ 1,975.29 $ 2,340.56 $ 4,938.94
EQ/J.P. Morgan Core Bond $ 1,214.43 $ 1,873.86 $ 2,176.03 $ 4,635.70
EQ/Janus Large Cap Growth $ 1,263.78 $ 2,018.10 $ 2,409.65 $ 5,064.41
EQ/Lazard Small Cap Value $ 1,249.08 $ 1,975.29 $ 2,340.56 $ 4,938.94
EQ/Marsico Focus $ 1,261.68 $ 2,012.00 $ 2,399.80 $ 5,046.60
EQ/Mercury Basic Value Equity $ 1,230.18 $ 1,920.06 $ 2,251.12 $ 4,774.85
EQ/Mercury International Value $ 1,265.88 $ 2,024.21 $ 2,419.48 $ 5,082.19
EQ/MFS Emerging Growth Companies $ 1,235.43 $ 1,935.42 $ 2,276.03 $ 4,820.74
EQ/MFS Investors Trust $ 1,234.38 $ 1,932.35 $ 2,271.05 $ 4,811.58
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
If you annuitize at the end of the
applicable time period
- ------------------------------------------------------------------------------------------------------------------------------------
Portfolio Name 1 year 3 years 5 years 10 years
- ------------------------------------------------------------------------------------------------------------------------------------
AXA PREMIER VIP TRUST:
- ------------------------------------------------------------------------------------------------------------------------------------
AXA Aggressive Allocation $ 1,454.54 $ 3,511.79 $ 5,382.92 $ 9,360.92
AXA Conservative Allocation $ 1,757.51 $ 4,255.40 $ 6,384.18 $ 10,438.86
AXA Conservative-Plus Allocation $ 1,246.41 $ 2,971.34 $ 4,610.30 $ 8,365.61
AXA Moderate Allocation $ 851.95 $ 1,878.71 $ 2,937.10 $ 5,731.71
AXA Moderate-Plus Allocation $ 1,025.08 $ 2,369.45 $ 3,706.69 $ 7,023.83
AXA Premier VIP Aggressive Equity $ 790.68 $ 1,700.77 $ 2,650.90 $ 5,216.40
AXA Premier VIP Core Bond $ 800.13 $ 1,728.35 $ 2,695.51 $ 5,297.96
AXA Premier VIP Health Care $ 886.21 $ 1,977.23 $ 3,093.93 $ 6,006.11
AXA Premier VIP High Yield $ 788.58 $ 1,694.63 $ 2,640.96 $ 5,198.16
AXA Premier VIP International Equity $ 896.71 $ 2,007.28 $ 3,141.54 $ 6,088.28
AXA Premier VIP Large Cap Core Equity $ 858.92 $ 1,898.79 $ 2,969.17 $ 5,788.28
AXA Premier VIP Large Cap Growth $ 849.47 $ 1,871.54 $ 2,925.65 $ 5,711.44
AXA Premier VIP Large Cap Value $ 849.47 $ 1,871.54 $ 2,925.65 $ 5,711.44
AXA Premier VIP Small/Mid Cap Growth $ 862.07 $ 1,907.87 $ 2,983.64 $ 5,813.72
AXA Premier VIP Small/Mid Cap Value $ 857.87 $ 1,895.77 $ 2,964.34 $ 5,779.78
AXA Premier VIP Technology $ 922.96 $ 2,082.12 $ 3,259.62 $ 6,289.84
- ------------------------------------------------------------------------------------------------------------------------------------
EQ ADVISORS TRUST:
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/Alliance Common Stock $ 766.53 $ 1,630.03 $ 2,536.07 $ 5,004.38
EQ/Alliance Growth and Income $ 775.98 $ 1,657.75 $ 2,581.14 $ 5,087.96
EQ/Alliance Intermediate Government Securities $ 769.68 $ 1,639.28 $ 2,551.12 $ 5,032.33
EQ/Alliance International $ 801.18 $ 1,731.41 $ 2,700.46 $ 5,306.98
EQ/Alliance Premier Growth $ 809.58 $ 1,755.88 $ 2,739.95 $ 5,378.75
EQ/Alliance Quality Bond $ 770.73 $ 1,642.36 $ 2,556.13 $ 5,041.62
EQ/Alliance Small Cap Growth $ 795.93 $ 1,716.10 $ 2,675.70 $ 5,261.81
EQ/Bernstein Diversified Value $ 783.33 $ 1,679.28 $ 2,616.07 $ 5,152.41
EQ/Calvert Socially Responsible $ 835.82 $ 1,832.08 $ 2,862.47 $ 5,599.15
EQ/Capital Guardian International $ 821.13 $ 1,789.46 $ 2,794.03 $ 5,476.45
EQ/Capital Guardian Research $ 785.43 $ 1,685.42 $ 2,626.03 $ 5,170.74
EQ/Capital Guardian U.S. Equity $ 785.43 $ 1,685.42 $ 2,626.03 $ 5,170.74
EQ/Emerging Markets Equity $ 872.57 $ 1,938.07 $ 3,031.73 $ 5,897.95
EQ/Equity 500 Index $ 742.39 $ 1,558.94 $ 2,420.08 $ 4,787.14
EQ/Evergreen Omega $ 804.33 $ 1,740.60 $ 2,715.28 $ 5,333.97
EQ/FI Mid Cap $ 791.73 $ 1,703.84 $ 2,655.86 $ 5,225.50
EQ/FI Small/Mid Cap Value $ 799.08 $ 1,725.29 $ 2,690.56 $ 5,288.94
EQ/J.P. Morgan Core Bond $ 764.43 $ 1,623.86 $ 2,526.03 $ 4,985.70
EQ/Janus Large Cap Growth $ 813.78 $ 1,768.10 $ 2,759.65 $ 5,414.41
EQ/Lazard Small Cap Value $ 799.08 $ 1,725.29 $ 2,690.56 $ 5,288.94
EQ/Marsico Focus $ 811.68 $ 1,762.00 $ 2,749.80 $ 5,396.60
EQ/Mercury Basic Value Equity $ 780.18 $ 1,670.06 $ 2,601.12 $ 5,124.85
EQ/Mercury International Value $ 815.88 $ 1,774.21 $ 2,769.48 $ 5,432.19
EQ/MFS Emerging Growth Companies $ 785.43 $ 1,685.42 $ 2,626.03 $ 5,170.74
EQ/MFS Investors Trust $ 784.38 $ 1,682.35 $ 2,621.05 $ 5,161.58
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
If you do not surrender your contract at the end of the
applicable time period
- ------------------------------------------------------------------------------------------------------------------------------------
Portfolio Name 1 year 3 years 5 years 10 years
- ------------------------------------------------------------------------------------------------------------------------------------
AXA PREMIER VIP TRUST:
- ------------------------------------------------------------------------------------------------------------------------------------
AXA Aggressive Allocation $ 1,104.54 $ 3,161.79 $ 5,032.92 $ 9,010.92
AXA Conservative Allocation $ 1,407.51 $ 3,905.40 $ 6,034.18 $ 10,088.86
AXA Conservative-Plus Allocation $ 896.41 $ 2,621.34 $ 4,260.30 $ 8,015.61
AXA Moderate Allocation $ 501.95 $ 1,528.71 $ 2,587.10 $ 5,381.71
AXA Moderate-Plus Allocation $ 675.08 $ 2,019.45 $ 3,356.69 $ 6,673.83
AXA Premier VIP Aggressive Equity $ 440.68 $ 1,350.77 $ 2,300.90 $ 4,866.40
AXA Premier VIP Core Bond $ 450.13 $ 1,378.35 $ 2,345.51 $ 4,947.96
AXA Premier VIP Health Care $ 536.21 $ 1,627.23 $ 2,743.93 $ 5,656.11
AXA Premier VIP High Yield $ 438.58 $ 1,344.63 $ 2,290.96 $ 4,848.16
AXA Premier VIP International Equity $ 546.71 $ 1,657.28 $ 2,791.54 $ 5,738.28
AXA Premier VIP Large Cap Core Equity $ 508.92 $ 1,548.79 $ 2,619.17 $ 5,438.28
AXA Premier VIP Large Cap Growth $ 499.47 $ 1,521.54 $ 2,575.65 $ 5,361.44
AXA Premier VIP Large Cap Value $ 499.47 $ 1,521.54 $ 2,575.65 $ 5,361.44
AXA Premier VIP Small/Mid Cap Growth $ 512.07 $ 1,557.87 $ 2,633.64 $ 5,463.72
AXA Premier VIP Small/Mid Cap Value $ 507.87 $ 1,545.77 $ 2,614.34 $ 5,429.78
AXA Premier VIP Technology $ 572.96 $ 1,732.12 $ 2,909.62 $ 5,939.84
- ------------------------------------------------------------------------------------------------------------------------------------
EQ ADVISORS TRUST:
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/Alliance Common Stock $ 416.53 $ 1,280.03 $ 2,186.07 $ 4,654.38
EQ/Alliance Growth and Income $ 425.98 $ 1,307.75 $ 2,231.14 $ 4,737.96
EQ/Alliance Intermediate Government Securities $ 419.68 $ 1,289.28 $ 2,201.12 $ 4,682.33
EQ/Alliance International $ 451.18 $ 1,381.41 $ 2,350.46 $ 4,956.98
EQ/Alliance Premier Growth $ 459.58 $ 1,405.88 $ 2,389.95 $ 5,028.75
EQ/Alliance Quality Bond $ 420.73 $ 1,292.36 $ 2,206.13 $ 4,691.62
EQ/Alliance Small Cap Growth $ 445.93 $ 1,366.10 $ 2,325.70 $ 4,911.81
EQ/Bernstein Diversified Value $ 433.33 $ 1,329.28 $ 2,266.07 $ 4,802.41
EQ/Calvert Socially Responsible $ 485.82 $ 1,482.08 $ 2,512.47 $ 5,249.15
EQ/Capital Guardian International $ 471.13 $ 1,439.46 $ 2,444.03 $ 5,126.45
EQ/Capital Guardian Research $ 435.43 $ 1,335.42 $ 2,276.03 $ 4,820.74
EQ/Capital Guardian U.S. Equity $ 435.43 $ 1,335.42 $ 2,276.03 $ 4,820.74
EQ/Emerging Markets Equity $ 522.57 $ 1,588.07 $ 2,681.73 $ 5,547.95
EQ/Equity 500 Index $ 392.39 $ 1,208.94 $ 2,070.08 $ 4,437.14
EQ/Evergreen Omega $ 454.33 $ 1,390.60 $ 2,365.28 $ 4,983.97
EQ/FI Mid Cap $ 441.73 $ 1,353.84 $ 2,305.86 $ 4,875.50
EQ/FI Small/Mid Cap Value $ 449.08 $ 1,375.29 $ 2,340.56 $ 4,938.94
EQ/J.P. Morgan Core Bond $ 414.43 $ 1,273.86 $ 2,176.03 $ 4,635.70
EQ/Janus Large Cap Growth $ 463.78 $ 1,418.10 $ 2,409.65 $ 5,064.41
EQ/Lazard Small Cap Value $ 449.08 $ 1,375.29 $ 2,340.56 $ 4,938.94
EQ/Marsico Focus $ 461.68 $ 1,412.00 $ 2,399.80 $ 5,046.60
EQ/Mercury Basic Value Equity $ 430.18 $ 1,320.06 $ 2,251.12 $ 4,774.85
EQ/Mercury International Value $ 465.88 $ 1,424.21 $ 2,419.48 $ 5,082.19
EQ/MFS Emerging Growth Companies $ 435.43 $ 1,335.42 $ 2,276.03 $ 4,820.74
EQ/MFS Investors Trust $ 434.38 $ 1,332.35 $ 2,271.05 $ 4,811.58
- ------------------------------------------------------------------------------------------------------------------------------------
14 Fee table
- ------------------------------------------------------------------------------------------------------------------------------------
If you surrender your contract at the end of the
applicable time period
- ------------------------------------------------------------------------------------------------------------------------------------
Portfolio Name 1 year 3 years 5 years 10 years
- ------------------------------------------------------------------------------------------------------------------------------------
EQ ADVISORS TRUST:
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/Money Market $ 1,200.79 $ 1,833.71 $ 2,110.56 $ 4,513.30
EQ/Putnam Growth & Income Value $ 1,233.33 $ 1,929.28 $ 2,266.07 $ 4,802.41
EQ/Putnam Voyager $ 1,241.73 $ 1,953.84 $ 2,305.86 $ 4,875.50
EQ/Small Company Index $ 1,222.83 $ 1,898.52 $ 2,216.14 $ 4,710.19
EQ/Technology $ 1,263.78 $ 2,018.10 $ 2,409.65 $ 5,064.41
- ------------------------------------------------------------------------------------------------------------------------------------
BARR ROSENBERG VARIABLE INSURANCE TRUST:
- ------------------------------------------------------------------------------------------------------------------------------------
Laudus Rosenberg VIT Value Long/Short Equity $ 1,926.22 $ 3,816.69 $ 5,109.32 $ 9,101.65
- ------------------------------------------------------------------------------------------------------------------------------------
THE UNIVERSAL INSTITUTIONAL FUNDS, INC.:
- ------------------------------------------------------------------------------------------------------------------------------------
U.S. Real Estate -- Class II $ 1,286.87 $ 2,085.12 $ 2,517.34 $ 5,257.84
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
If you annuitize at the end of the
applicable time period
- ------------------------------------------------------------------------------------------------------------------------------------
Portfolio Name 1 year 3 years 5 years 10 years
- ------------------------------------------------------------------------------------------------------------------------------------
EQ ADVISORS TRUST:
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/Money Market $ 750.79 $ 1,583.71 $ 2,460.56 $ 4,863.30
EQ/Putnam Growth & Income Value $ 783.33 $ 1,679.28 $ 2,616.07 $ 5,152.41
EQ/Putnam Voyager $ 791.73 $ 1,703.84 $ 2,655.86 $ 5,225.50
EQ/Small Company Index $ 772.83 $ 1,648.52 $ 2,566.14 $ 5,060.19
EQ/Technology $ 813.78 $ 1,768.10 $ 2,759.65 $ 5,414.41
- ------------------------------------------------------------------------------------------------------------------------------------
BARR ROSENBERG VARIABLE INSURANCE TRUST:
- ------------------------------------------------------------------------------------------------------------------------------------
Laudus Rosenberg VIT Value Long/Short Equity $ 1,476.22 $ 3,566.69 $ 5,459.32 $ 9,451.65
- ------------------------------------------------------------------------------------------------------------------------------------
THE UNIVERSAL INSTITUTIONAL FUNDS, INC.:
- ------------------------------------------------------------------------------------------------------------------------------------
U.S. Real Estate -- Class II $ 836.87 $ 1,835.12 $ 2,867.34 $ 5,607.84
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
If you do not surrender your contract at the end of the
applicable time period
- ------------------------------------------------------------------------------------------------------------------------------------
Portfolio Name 1 year 3 years 5 years 10 years
- ------------------------------------------------------------------------------------------------------------------------------------
EQ ADVISORS TRUST:
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/Money Market $ 400.79 $ 1,233.71 $ 2,110.56 $ 4,513.30
EQ/Putnam Growth & Income Value $ 433.33 $ 1,329.28 $ 2,266.07 $ 4,802.41
EQ/Putnam Voyager $ 441.73 $ 1,353.84 $ 2,305.86 $ 4,875.50
EQ/Small Company Index $ 422.83 $ 1,298.52 $ 2,216.14 $ 4,710.19
EQ/Technology $ 463.78 $ 1,418.10 $ 2,409.65 $ 5,064.41
- ------------------------------------------------------------------------------------------------------------------------------------
BARR ROSENBERG VARIABLE INSURANCE TRUST:
- ------------------------------------------------------------------------------------------------------------------------------------
Laudus Rosenberg VIT Value Long/Short Equity $ 1,126.22 $ 3,216.69 $ 5,109.32 $ 9,101.65
- ------------------------------------------------------------------------------------------------------------------------------------
THE UNIVERSAL INSTITUTIONAL FUNDS, INC.:
- ------------------------------------------------------------------------------------------------------------------------------------
U.S. Real Estate -- Class II $ 486.87 $ 1,485.12 $ 2,517.34 $ 5,257.84
- ------------------------------------------------------------------------------------------------------------------------------------
Fee table 15
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 periods shown for each of the
variable investment options available as of December 31, 2003.
16 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 initial contribution of $10,000 for you
to purchase a contract. You may make additional contributions of: (i) at least
$500 each for NQ, QP and Rollover TSA contracts; (ii) $50 each for Rollover IRA
and Roth conversion IRA contracts; and (iii) $1,000 for Inherited IRA
contracts, subject to limitations noted below. The following table summarizes
our rules regarding contributions to your contract. In some states, our rules
may vary. All ages in the table refer to the age of the annuitant named in the
contract.
We may refuse to accept any contribution if the sum of all contributions under
all Equitable Accumulator(R) series contracts with the same annuitant would
then total more than $1,500,000. We reserve the right to limit aggregate
contributions made after the first contract year to 150% of first-year
contributions. 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. We may accept less than the minimum
initial contribution under a contract if an aggregate amount of contracts
purchased at the same time by an individual (including spouse) meets the
minimum.
- --------------------------------------------------------------------------------
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 Limitations on
Contract type issue ages Source of contributions contributions
- ------------------------------------------------------------------------------------------------------------------------------------
NQ 0 through 85 o After-tax money. o No additional contributions after attainment
of age 87.
o Paid to us by check or transfer of contract value
in a tax-deferred exchange under Section 1035
of the Internal Revenue Code.
- ------------------------------------------------------------------------------------------------------------------------------------
Rollover IRA 20 through 85 o Eligible rollover distributions from TSA contracts o No rollover or direct transfer contributions
or other 403(b) arrangements, qualified plans, after attainment of age 87.
and governmental employer 457(b) plans.
o Contributions after age 70-1/2 must be net
o Rollovers from another traditional individual of required minimum distributions.
retirement arrangement.
o Although we accept regular IRA contributions
o Direct custodian-to-custodian transfers from (limited to $3,000 for 2004 and $4,000 for
another traditional individual retirement 2005), under the Rollover IRA contracts, we
arrangement. intend that this contract be used primarily
for rollover and direct transfer
o Regular IRA contributions. contributions.
o Additional "catch-up" contributions. o Additional catch-up contributions of up to
$500 can be made for the calendar year 2004
or 2005 where the owner is at least age 50
but under age 70-1/2 at any time during the
calendar year for which the contribution is
made.
- ------------------------------------------------------------------------------------------------------------------------------------
Contract features and benefits 17
- ------------------------------------------------------------------------------------------------------------------------------------
Available for
annuitant Limitations on
Contract type issue ages Source of contributions contributions
- ------------------------------------------------------------------------------------------------------------------------------------
Roth Conversion 20 through 85 o Rollovers from another Roth IRA. o No additional rollover or direct transfer
IRA contributions after attainment of age 87.
o Conversion rollovers from a traditional IRA.
o Conversion rollovers after age 70-1/2 must
o Direct transfers from another Roth IRA. be net of required minimum distributions for
for the traditional IRA you are rolling over.
o Regular Roth IRA contributions.
o You cannot roll over funds from a traditional
o Additional catch-up contributions. IRA if your adjusted gross income is $100,000
or more.
o Although we accept regular Roth IRA contribu-
tions (limited to $3,000 for 2004 and $4,000
for 2005) under the Roth IRA contracts, we
intend that this contract be used primarily for
rollover and direct transfer contributions.
o Additional catch-up contributions of up to $500
can be made for the calendar year 2004 or 2005
where the owner is at least age 50 at any time
during the calendar year for which the
contribution is made.
- ------------------------------------------------------------------------------------------------------------------------------------
Inherited IRA 0 through 70 o (If contract is traditional IRA) Direct o Any additional contributions must be from same
Beneficiary Con- custodian-to-custodian transfers of your type of IRA of same deceased owner.
tinuation Contract interest as death beneficiary of the deceased
(traditional IRA owner's traditional individual retirement
or Roth IRA) arrangement.
o (If contract is Roth IRA) Direct custodian-to-
custodian transfers of your interest as death
beneficiary of the deceased owner's Roth IRA.
- ------------------------------------------------------------------------------------------------------------------------------------
Rollover TSA 20 through 85 o Direct transfers of pre-tax funds from another o No additional rollover or direct transfer
contract or arrangement under Section 403(b) contributions after attainment of age 87.
of the Internal Revenue Code, complying with
IRS Revenue Ruling 90-24. o Rollover or direct transfer contributions
after age 70-1/2 must be net of any required
o Eligible rollover distributions of pre-tax funds minimum distributions.
from other 403(b) plans .
o We do not accept employer-remitted
o Subsequent contributions may also be rollovers contributions.
from qualified plans, governmental employer
457(b) plans and traditional IRAs.
- ------------------------------------------------------------------------------------------------------------------------------------
18 Contract features and benefits
- ------------------------------------------------------------------------------------------------------------------------------------
Available for
annuitant Limitations on
Contract type issue ages Source of contributions contributions
- ------------------------------------------------------------------------------------------------------------------------------------
QP 20 through 75 o Only transfer contributions from an existing o We do not accept regular ongoing payroll
defined contribution qualified plan trust. contributions.
o The plan must be qualified under Section 401(a) o Only one additional transfer contribution
of the Internal Revenue Code. may be made during a contract year.
o For 401(k) plans, transferred contributions may o No additional transfer contributions after
only include employee pre-tax contributions. attainment of age 76 or, if later, the first
contract anniversary.
o A Separate QP contract must be established
for each plan participant.
o We do not accept employer-remitted
contributions.
o We do not accept contributions from defined
benefit plans.
Please refer to Appendix II at the end of this Prospectus for a discussion of purchase considerations of QP contracts.
- ------------------------------------------------------------------------------------------------------------------------------------
See "Tax information" later in this Prospectus and in the SAI for a more
detailed discussion of sources of contributions and certain contribution
limitations.
For information on when contributions are credited under your contract see
"Dates and prices at which contract events occur" in "More information" later
in this Prospectus.
Contract features and benefits 19
OWNER AND ANNUITANT REQUIREMENTS
Under NQ contracts, the annuitant can be different from 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. In general, we
will not permit a contract to be owned by a minor unless it is pursuant to the
Uniform Gifts to Minors Act or the Uniform Transfers to Minors Act in your
state.
Under all IRA and Rollover TSA contracts, the owner and annuitant must be the
same person. In some cases, an IRA contract may be held in a custodial
individual retirement account for the benefit of the individual annuitant. This
option may not be available under your contract.
Under QP contracts, the owner must be the trustee of the qualified plan and the
annuitant must be the plan participant/employee. See Appendix II at the end of
this Prospectus for more information on QP contracts.
- --------------------------------------------------------------------------------
A "participant" is an individual who is currently, or was formerly,
participating in an eligible employer's qualified plan or TSA plan.
- --------------------------------------------------------------------------------
HOW YOU CAN MAKE YOUR CONTRIBUTIONS
Except as noted below, contributions must be 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.
For your convenience, we will accept initial and additional contributions by
wire transmittal from certain broker-dealers who have agreements with us for
this purpose including circumstances under which certain contributions are
considered received by us when your order is taken by such broker-dealer.
Additional contributions may also be made under our automatic investment
program. These methods of payment are 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 payments. 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.
- --------------------------------------------------------------------------------
Our "business day" is generally any day the New York Stock Exchange is open for
trading and generally ends at 4:00 p.m. Eastern Time. A business day does not
include a 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, the fixed maturity options and the account for special dollar
cost averaging.
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/Money Market variable investment
option. Listed below are the currently available portfolios, their investment
objectives and their advisers. See "Inherited IRA beneficiary continuation
contract" later in this section for Inherited IRA owner and annuitant
requirements.
- --------------------------------------------------------------------------------
You can choose from among the variable investment options, the guaranteed
interest option, the fixed maturity options and the account for special dollar
cost averaging.
- --------------------------------------------------------------------------------
20 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 the Accumulator(R)
Elite(SM) 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.
Equitable Life serves as the investment manager of the Portfolios of the EQ
Advisors Trust and the AXA Premier VIP Trust. 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. The
advisers for these Portfolios, listed in the chart below, are those who make
the investment decisions for each Portfolio. The chart also indicates the
investment manager for each of the other Portfolios.
- ------------------------------------------------------------------------------------------------------------------------------------
AXA Premier VIP Trust
Portfolio Name Objective Adviser(s)
- ------------------------------------------------------------------------------------------------------------------------------------
AXA AGGRESSIVE ALLOCATION Seeks long-term capital appreciation. o Equitable Life
- ------------------------------------------------------------------------------------------------------------------------------------
AXA CONSERVATIVE ALLOCATION Seeks a high level of current income. o Equitable Life
- ------------------------------------------------------------------------------------------------------------------------------------
AXA CONSERVATIVE-PLUS Seeks current income and growth of capital, with o Equitable Life
ALLOCATION greater emphasis on current income.
- ------------------------------------------------------------------------------------------------------------------------------------
AXA MODERATE ALLOCATION Seeks long-term capital appreciation and current income. o Equitable Life
- ------------------------------------------------------------------------------------------------------------------------------------
AXA MODERATE-PLUS Seeks long-term capital appreciation and current income o Equitable Life
ALLOCATION with a greater emphasis on capital appreciation.
- ------------------------------------------------------------------------------------------------------------------------------------
AXA PREMIER VIP AGGRESSIVE Seeks long-term growth of capital. o Alliance Capital Management L.P.
EQUITY
o MFS Investment Management
o Marsico Capital Management, LLC
o Provident Investment Counsel, Inc.
- ------------------------------------------------------------------------------------------------------------------------------------
AXA PREMIER VIP CORE BOND Seeks a balance of high current income and capital o BlackRock Advisors, Inc.
appreciation, consistent with a prudent level of risk.
o Pacific Investment Management Company
LLC
- ------------------------------------------------------------------------------------------------------------------------------------
AXA PREMIER VIP HEALTH CARE Seeks long-term growth of capital. o A I M Capital Management, Inc.
o RCM Capital Management LLC
o Wellington Management Company, LLP
- ------------------------------------------------------------------------------------------------------------------------------------
AXA PREMIER VIP HIGH YIELD Seeks high total return through a combination of current o Alliance Capital Management L.P.
income and capital appreciation.
o Pacific Investment Management Company
LLC
- ------------------------------------------------------------------------------------------------------------------------------------
AXA PREMIER VIP Seeks long-term growth of capital. o Alliance Capital Management L.P.,
INTERNATIONAL EQUITY through its Bernstein Investment
Research and Management Unit
o Bank of Ireland Asset Management
(U.S.) Limited
o Marsico Capital Management, LLC
- ------------------------------------------------------------------------------------------------------------------------------------
AXA PREMIER VIP LARGE CAP Seeks long-term growth of capital. o Alliance Capital Management L.P.,
CORE EQUITY through its Bernstein Investment
Research and Management Unit
o Janus Capital Management LLC
o Thornburg Investment Management, Inc.
- ------------------------------------------------------------------------------------------------------------------------------------
Contract features and benefits 21
Portfolios of the Trusts (continued)
- ------------------------------------------------------------------------------------------------------------------------------------
AXA Premier VIP Trust
Portfolio Name Objective Adviser(s)
- ------------------------------------------------------------------------------------------------------------------------------------
AXA PREMIER VIP LARGE CAP Seeks long-term growth of capital. o Alliance Capital Management L.P.
GROWTH
o RCM Capital Management LLC
o TCW Investment Management Company
- ------------------------------------------------------------------------------------------------------------------------------------
AXA PREMIER VIP LARGE CAP Seeks long-term growth of capital. o Alliance Capital Management L.P.
VALUE
o Institutional Capital Corporation
o MFS Investment Management
- ------------------------------------------------------------------------------------------------------------------------------------
AXA PREMIER VIP SMALL/MID Seeks long-term growth of capital. o Alliance Capital Management L.P.
CAP GROWTH
o Franklin Advisers, Inc.
o Provident Investment Counsel, Inc.
- ------------------------------------------------------------------------------------------------------------------------------------
AXA PREMIER VIP SMALL/MID Seeks long-term growth of capital. o AXA Rosenberg Investment Management LLC
CAP VALUE
o TCW Investment Management Company
o Wellington Management Company, LLP
- ------------------------------------------------------------------------------------------------------------------------------------
AXA PREMIER VIP TECHNOLOGY Seeks long-term growth of capital. o Firsthand Capital Management, Inc.
o RCM Capital Management LLC
o Wellington Management Company, LLP
- ------------------------------------------------------------------------------------------------------------------------------------
EQ Advisors Trust
Portfolio Name Objective Adviser(s)
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/ALLIANCE COMMON STOCK Seeks to achieve long-term growth of capital. o Alliance Capital Management L.P.
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/ALLIANCE GROWTH AND Seeks to provide a high total return. o Alliance Capital Management L.P.
INCOME
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/ALLIANCE INTERMEDIATE Seeks to achieve high current income consistent with o Alliance Capital Management L.P.
GOVERNMENT SECURITIES relative stability of principal.
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/ALLIANCE INTERNATIONAL Seeks to achieve long-term growth of capital. o Alliance Capital Management L.P.
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/ALLIANCE PREMIER GROWTH Seeks to achieve long-term growth of capital. o Alliance Capital Management L.P.
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/ALLIANCE QUALITY BOND Seeks to achieve high current income consistent with o Alliance Capital Management L.P.
moderate risk to capital.
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/ALLIANCE SMALL CAP Seeks to achieve long-term growth of capital. o Alliance Capital Management L.P.
GROWTH
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/BERNSTEIN DIVERSIFIED VALUE Seeks capital appreciation. o Alliance Capital Management L.P.,
through its Bernstein Investment Research
and Management Unit
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/CALVERT SOCIALLY Seeks long-term capital appreciation. o Calvert Asset Management Company, Inc.
RESPONSIBLE and Brown Capital Management, Inc.
- ------------------------------------------------------------------------------------------------------------------------------------
22 Contract features and benefits
Portfolios of the Trusts (continued)
- ------------------------------------------------------------------------------------------------------------------------------------
EQ Advisors Trust
Portfolio Name Objective Adviser(s)
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/CAPITAL GUARDIAN To achieve long-term growth of capital. o Capital Guardian Trust Company
INTERNATIONAL
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/CAPITAL GUARDIAN Seeks to achieve long-term growth of capital. o Capital Guardian Trust Company
RESEARCH
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/CAPITAL GUARDIAN U.S. Seeks to achieve long-term growth of capital. o Capital Guardian Trust Company
EQUITY
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/EMERGING MARKETS EQUITY Seeks long-term capital appreciation. o Morgan Stanley Investment Management,
Inc.
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/EQUITY 500 INDEX Seeks a total return before expenses that approximates o 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. o Evergreen Investment Management
Company, LLC
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/FI MID CAP Seeks long-term growth of capital. o Fidelity Management & Research Company
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/FI SMALL/MID CAP VALUE Seeks long-term capital appreciation. o Fidelity Management & Research Company
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/J.P. MORGAN CORE BOND Seeks to provide a high total return consistent with o J.P. Morgan Investment Management Inc.
moderate risk to capital and maintenance of liquidity.
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/JANUS LARGE CAP GROWTH Seeks long-term growth of capital. o Janus Capital Management LLC
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/LAZARD SMALL CAP VALUE Seeks capital appreciation. o Lazard Asset Management, LLC
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/MARSICO FOCUS Seeks long-term growth of capital. o Marsico Capital Management, LLC
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/MERCURY BASIC VALUE Seeks capital appreciation and secondarily, income. o Mercury Advisors
EQUITY
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/MERCURY INTERNATIONAL Seeks capital appreciation. o Merrill Lynch Investment Managers Interna-
VALUE tional Limited
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/MFS EMERGING GROWTH Seeks to provide long-term capital growth. o MFS Investment Management
COMPANIES
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/MFS INVESTORS TRUST Seeks long-term growth of capital with secondary objec- o MFS Investment Management
tive to seek reasonable current income.
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/MONEY MARKET Seeks to obtain a high level of current income, preserve o Alliance Capital Management L.P.
its assets and maintain liquidity.
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/PUTNAM GROWTH & INCOME Seeks capital growth. Current income is a secondary o Putnam Investment Management, LLC
VALUE objective.
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/PUTNAM VOYAGER Seeks long-term growth of capital and any increased o Putnam Investment Management, LLC
income that results from this growth.
- ------------------------------------------------------------------------------------------------------------------------------------
Contract features and benefits 23
Portfolios of the Trusts (continued)
- ------------------------------------------------------------------------------------------------------------------------------------
EQ Advisors Trust
Portfolio Name Objective Adviser(s)
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/SMALL COMPANY INDEX Seeks to replicate as closely as possible (before the o Alliance Capital Management L.P.
deduction of portfolio expenses) the total return of
the Russell 2000 Index.
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/TECHNOLOGY Seeks to achieve long-term growth of capital. o Firsthand Capital Management, Inc.
o RCM Capital Management LLC
o Wellington Management Company, LLP
- ------------------------------------------------------------------------------------------------------------------------------------
Barr Rosenberg Variable
Insurance Trust
Portfolio Name Objective Investment Manager/Adviser
- ------------------------------------------------------------------------------------------------------------------------------------
LAUDUS ROSENBERG VIT VALUE Seeks to increase the value of your investment in bull o Charles Schwab Investment Management,
LONG/SHORT EQUITY markets and bear markets through strategies that are Inc.
designed to have limited exposure to general equity
market risk. o AXA Rosenberg Investment Management LLC
- ------------------------------------------------------------------------------------------------------------------------------------
The Universal Institutional
Funds, Inc.
Portfolio Name Objective Investment Manager
- ------------------------------------------------------------------------------------------------------------------------------------
U.S. REAL ESTATE -- Class II(1) Seeks to provide above average current income and o Van Kampen(2)
long-term capital appreciation by investing primarily
in equity securities of companies in the U.S. real
estate industry, including real estate investment trusts.
- ------------------------------------------------------------------------------------------------------------------------------------
(1) 'Class II' Shares are defined in the current underlying Trust prospectus.
(2) Van Kampen is the name under which Morgan Stanley Investment Management
Inc. does business in certain situations.
You should consider the investment objectives, risks and charges and expenses
of the Portfolios carefully before investing. The prospectuses for the Trusts
contain this and other important information about the Portfolios. The
prospectuses should be read carefully before investing. In order to obtain
copies of Trust prospectuses that do not accompany this Prospectus, you may
call one of our customer service representatives at 1-800-789-7771.
24 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. We reserve the right to change these procedures.
All interest rates are effective annual rates, but before deduction of annual
administrative charges (if permitted in your state), or any withdrawal charges.
The minimum yearly guaranteed interest rate is 3% for 2004. 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.
See "Transferring your money among the investment options" later in the
prospectus for restrictions on transfer from the Guaranteed Interest Option.
FIXED MATURITY OPTIONS
We offer fixed maturity options with maturity dates ranging from one to ten
years. We will not accept allocations to a fixed maturity option if on the date
the contribution or transfer is to be applied the rate to maturity is 3%. This
means that at points in time there may be no fixed maturity options available.
You can allocate your contributions to one or more of these fixed maturity
options, however, you may not have more than 12 different maturities running
during any contract year. These amounts become part of a non-unitized separate
account. 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 all states. Check with your financial professional
to see if fixed maturity options are available in your state.
- --------------------------------------------------------------------------------
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.
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 amounts 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 offer fixed maturity options with
maturity dates ranging from one to ten years. Not all of these fixed maturity
options will be available for annuitant ages 76 and older. See "Allocating your
contributions" below.
Each new contribution is applied to a new fixed maturity option. When you apply
for an Accumulator(R) Elite(SM) contract, a 60-day rate lock-in will apply from
the date the application is signed. Any contributions received and designated
for a fixed maturity option during this period will receive the then current
fixed maturity option rate or the rate that was in effect on the date that the
application was signed, whichever is greater. There is no rate lock available
for subsequent contributions to the contract after 60 days, transfers from the
variable investment options or the guaranteed interest option into a fixed
maturity option or transfers from one fixed maturity option to another.
YOUR CHOICES AT THE MATURITY DATE. We will notify you between 15 and 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 below in "Allocating your
contributions," would apply:
(a) transfer the maturity value into another available fixed maturity option,
any of the variable investment options or the guaranteed interest option;
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
shortest available maturity option beginning on that date. As of February 13,
2004 the next available maturity date was February 13, 2012. If no fixed
maturity options are available we will transfer your maturity value to the
EQ/Money Market Option.
MARKET VALUE ADJUSTMENT. If you make any withdrawals (including transfers,
surrender 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 in effect at that time for new fixed maturity
options (adjusted to reflect a similar maturity date), 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
Contract features and benefits 25
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.
ACCOUNT FOR SPECIAL DOLLAR COST AVERAGING
The account for special dollar cost averaging is part of our general account.
We pay interest at guaranteed rates in this account. We will credit interest to
the amounts that you have in the account for special dollar cost averaging
every day. We set the interest rates periodically, according to procedures that
we have. We reserve the right to change these procedures.
We guarantee to pay our current interest rate that is in effect on the date
that your contribution is allocated to this account. Your guaranteed interest
rate for the time period you select will be shown in your contract for an
initial contribution. The rate will never be less than 3%. See "Allocating your
contributions" below for rules and restrictions that apply to the special
dollar cost averaging program.
ALLOCATING YOUR CONTRIBUTIONS
You may choose from among three ways to allocate your contributions under your
contract: self-directed, principal assurance or dollar cost averaging.
SELF-DIRECTED ALLOCATION
You may allocate your contributions to one or more, or all, of the variable
investment options, the guaranteed interest option and fixed maturity options.
Allocations must be in whole percentages and you may change your allocations at
any time. No more than 25% of any contribution may be allocated to the
guaranteed interest option. The total of your allocations into all available
investment options must equal 100%. If the annuitant is age 76-80, you may
allocate contributions to fixed maturity options with maturities of seven years
or less. If the annuitant is age 81 or older, you may allocate contributions to
fixed maturity options with maturities of five years or less. Also, you may not
allocate amounts to fixed maturity options with maturity dates that are later
than the date annuity payments are to begin.
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 7 years from your contract date. If you make any withdrawals or
transfers from the fixed maturity option before the option's maturity date, the
amount in the fixed maturity option will be adjusted and may no longer grow to
equal your initial contribution under the principal assurance allocation.
Principal assurance will not be available if none of those maturity dates is
available. You allocate the rest of your contribution to the variable
investment options and guaranteed interest option however you choose.
For example, if your initial contribution is $25,000, and on February 13, 2004
you chose the fixed maturity option with a maturity date of February 13, 2014,
since the rate to maturity was 3.73% on February 13, 2004, we would have
allocated $17,329 to that fixed maturity option and the balance to your choice
of variable investment options and guaranteed interest option. On the maturity
date your value in the fixed maturity option would be $25,000.
The principal assurance allocation is only available for annuitant ages 80 or
younger when the contract is issued. If the annuitant is age 76-80, your
principal assurance allocation is limited to the seven year fixed maturity
option only. If you anticipate taking required minimum distributions, you
should consider whether your values in the variable investment options and
guaranteed interest option are sufficient to meet your required minimum
distributions. See "Tax information" later in this Prospectus and in the SAI.
Please check with your financial professional to see if the principal assurance
allocation feature is available in your state. Also, you may not elect
principal assurance if the special dollar cost averaging program is in effect.
DOLLAR COST AVERAGING
We offer a variety of dollar cost averaging programs. You may only participate
in one program at a time. Each program 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 value is low and fewer units if
the unit value is high. Therefore, you may get a lower average cost per unit
over the long term. These plans of investing, however, do not guarantee that
you will earn a profit or be protected against losses. You may not make
transfers to the fixed maturity options.
- --------------------------------------------------------------------------------
Units measure your value in each variable investment option.
- --------------------------------------------------------------------------------
SPECIAL DOLLAR COST AVERAGING PROGRAM. Subject to state availability, under the
special dollar cost averaging program, you may choose to allocate all or a
portion of any eligible contribution to the account for special dollar cost
averaging. Contributions into the account for special dollar cost averaging may
not be transfers from other investment options. Your initial allocation to any
special dollar cost averaging program time period must be at least $2,000 and
any subsequent contribution to that same time period must be at least $250. You
may only have one time period in effect at any time and once you select a time
period, you may not change it. In Pennsylvania, we refer to this program as
"enhanced rate dollar cost averaging."
You may have your account value transferred to any of the variable investment
options. We will transfer amounts from the account for
26 Contract features and benefits
special dollar cost averaging into the variable investment options over an
available time period that you select. We offer time periods of 3, 6 or 12
months during which you will receive an enhanced interest rate. We may also
offer other time periods. Your financial professional can provide information
on the time periods and interest rates currently available in your state, or
you may contact our processing office. If the special dollar cost averaging
program is selected at the time of application to purchase the Accumulator(R)
Elite(SM) contract, a 60 day rate lock will apply from the date of application.
Any contribution(s) received during this 60 day period will be credited with
the interest rate offered on the date of application for the remainder of the
time period selected at application. Any contribution(s) received after the 60
day rate lock period has ended will be credited with the then current interest
rate for the remainder of the time period selected at application.
Contribution(s) made to a special dollar cost averaging program selected after
the Accumulator(R) Elite(SM) contract has been issued will be credited with the
then current interest rate on the date the contribution is received by
Equitable for the time period initially selected by you. Once the time period
you selected has run, you may then select another time period for future
contributions. At that time, you may also select a different allocation for
transfers to the variable investment options, or, if you wish, we will continue
to use the selection that you have previously made. Currently, your account
value will be transferred from the account for special dollar cost averaging
into the variable investment options on a monthly basis. We may offer this
program in the future with transfers on a different basis.
We will transfer all amounts out of the account for special dollar cost
averaging by the end of the chosen time period. The transfer date will be the
same day of the month as the contract date, but not later than the 28th day of
the month. For a special dollar cost averaging program selected after
application, the first transfer date and each subsequent transfer date for the
time period selected will be one month from the date the first contribution is
made into the special dollar cost averaging program, but not later than the
28th of the month.
If you choose to allocate only a portion of an eligible contribution to the
account for special dollar cost averaging, the remaining balance of that
contribution will be allocated to the variable investment options, guaranteed
interest option or fixed maturity options according to your instructions.
The only amounts that should be transferred from the account for special dollar
cost averaging are your regularly scheduled transfers to the variable
investment options. No amounts may be transferred from the account for special
dollar cost averaging to the guaranteed interest option or the fixed maturity
options. If you request to transfer or withdraw any other amounts from the
account for special dollar averaging, we will transfer all of the value that
you have remaining in the account for special dollar cost averaging to the
investment options according to the allocation percentages for special dollar
cost averaging we have on file for you. You may ask us to cancel your
participation at any time.
GENERAL DOLLAR COST AVERAGING PROGRAM. If your value in the EQ/Money Market
option is at least $5,000, you may choose, at any time, to have a specified
dollar amount or percentage of your value transferred from that option to the
other variable investment options. You can select to have transfers made on a
monthly, quarterly or annual basis. The transfer date will be the same calendar
day of the month as the contract date, but not later than the 28th day of the
month. You can also specify the number of transfers or instruct us to continue
making the transfers until all amounts in the EQ/Money Market option have been
transferred out.
The minimum amount that we will transfer each time is $250. The maximum amount
we will transfer is equal to your value in the EQ/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/Money Market option is equal to
or less than the amount you have elected to have transferred, the entire amount
will be transferred. The general dollar cost averaging program will then end.
You may change the transfer amount once each contract year or cancel this
program at any time.
INVESTMENT SIMPLIFIER
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. Transfers may be made on a monthly,
quarterly or annual basis. You can specify the number of transfers or instruct
us to continue to make 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. The transfer date will be the same calendar day of the month
as the contract date but not later than the 28th day of the month. The minimum
transfer amount is $50. Unlike the account for special dollar cost averaging,
this option does not offer enhanced rates. Also, this option is subject to the
guaranteed interest option transfer limitations described under "Transferring
your account value" in "Transferring your money among investment options" later
in this Prospectus. While the program is running, any transfer that exceeds
those limitations will cause the program to end for that contract year. You
will be notified. You must send in a request form to resume the program in the
next or subsequent contract years.
If, on any transfer date, your value in the guaranteed interest option is equal
to or less than the amount you have elected to have transferred, the entire
amount will be transferred, and the program will end. You may change the
transfer amount once each contract year or cancel this program at any time.
Interest sweep option. Under this option, you may elect to have monthly
transfers from amounts in the guaranteed interest option into the variable
investment options of your choice. The transfer date will be the last business
day of the month. 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. We will automatically cancel the interest sweep
program if the amount in the guaranteed interest option is less than $7,500 on
the last day of the month for two months in a row. For the interest sweep
option, the first monthly transfer will occur on the
Contract features and benefits 27
last business day of the month following the month that we receive your
election form at our processing office.
----------------------------------
You may not participate in any dollar cost averaging program if you are
participating in the rebalancing program. See "Transferring your money among
investment options" later in this Prospectus. You may not elect the special
dollar cost averaging program if the principal assurance program is in effect.
YOUR BENEFIT BASE
A benefit base is used to calculate the guaranteed minimum income benefit and
any death benefit, as described in this section. Your benefit base is not an
account value or a cash value. See also "Our Living Benefit option" and
"Guaranteed minimum death benefit" below.
STANDARD DEATH BENEFIT. Your benefit base is equal to:
o your initial contribution and any additional contributions to the contract;
less
o a deduction that reflects any withdrawals you make (the amount of the
deduction is described under "How withdrawals affect your guaranteed
minimum income benefit and guaranteed minimum death benefit" in "Accessing
your money" later in this Prospectus).
6% ROLL UP TO AGE 85 ENHANCED DEATH BENEFIT. Your benefit base is equal to:
o your initial contribution and any additional contributions to the contract;
plus
o daily interest; less
o a deduction that reflects any withdrawals you make (the amount of the
deduction is described under "How withdrawals affect your guaranteed
minimum income benefit and guaranteed minimum death benefit" in "Accessing
your money" later in this Prospectus).
The effective annual interest rate credited to this benefit base is:
o 6% (4% in Washington for the enhanced death benefit only) with respect to the
variable investment options (other than EQ/Alliance Intermediate
Government Securities and EQ/Money Market) and the account for special
dollar cost averaging; and
o 3% with respect to the EQ/Alliance Intermediate Government Securities and
EQ/Money Market, the fixed maturity options, the guaranteed interest
option and the loan reserve account under Rollover TSA (if applicable).
No interest is credited to the benefit base after the contract anniversary
following the annuitant's 85th birthday.
ANNUAL RATCHET TO AGE 85 ENHANCED DEATH BENEFIT. Your benefit base is equal to
the greater of:
o your initial contribution to the contract (plus any additional
contributions),
or
o your highest account value of any contract anniversary up to the contract
anniversary following the annuitant's 85th birthday, plus any contribution
made since the most recent contract anniversary,
each less
o a deduction that reflects any withdrawals you make (the amount of the
deduction is described under "How withdrawals affect your guaranteed
minimum income benefit and guaranteed minimum death benefit" in "Accessing
your money" later in this Prospectus).
GREATER OF THE 6% ROLL UP TO AGE 85 OR THE ANNUAL RATCHET TO AGE 85 ENHANCED
DEATH BENEFIT AND THE GUARANTEED MINIMUM INCOME BENEFIT. Your benefit base is
equal to the greater of the benefit base computed for the 6% Roll up to age 85
or the benefit base computed for Annual ratchet to age 85, as described
immediately above, on each contract anniversary. For the guaranteed minimum
income benefit, the benefit base is reduced by any applicable withdrawal charge
remaining when the option is exercised.
ANNUITY PURCHASE FACTORS
Annuity purchase factors are the factors applied to determine your periodic
payments under the guaranteed minimum income benefit and annuity payout
options. The guaranteed minimum income benefit is discussed in "Our Living
Benefit option" below and annuity payout options are discussed in "Accessing
your money" later in this Prospectus. The guaranteed annuity purchase factors
are those factors specified in your contract. The current annuity purchase
factors are those factors that are in effect at any given time. Annuity
purchase factors are based on interest rates, mortality tables, frequency of
payments, the form of annuity benefit, and the annuitant's (and any joint
annuitant's) age and sex in certain instances.
OUR LIVING BENEFIT OPTION
The Living Benefit option offers you a guaranteed minimum income benefit. The
Living Benefit is available if the annuitant is age 20 through 75 at the time
the contract is issued. There is an additional charge for the Living Benefit
which is described under "Living Benefit charge" in "Charges and expenses"
later in this Prospectus. Please ask your financial professional if the Living
Benefit is available in your state. If you are purchasing this contract as an
Inherited IRA, the guaranteed minimum income benefit is not available. If you
are purchasing this contract to fund a Charitable Remainder Trust, the
guaranteed minimum income benefit is generally not available. Subject to our
rules, the Living Benefit may be available for certain split-funded Charitable
Remainder Trusts.
The guaranteed minimum income benefit guarantees you a minimum amount of fixed
income under your choice of a life annuity fixed payout option or an Income
Manager level payment life with a period certain payout option, subject to
state availability. You choose which of these payout options you want and
whether you want the option to be paid on a single or joint life basis at the
time you exercise your guaranteed minimum income benefit. The maximum period
certain available under the Income Manager payout option is 10 years. This
period may be shorter, depending on the annuitant's age as follows:
- --------------------------------------------------
Level payments
- --------------------------------------------------
Period certain years
-----------------------------
Annuitant's age at
exercise IRAs NQ
- --------------------------------------------------
60 to 75 10 10
- --------------------------------------------------
28 Contract features and benefits
- --------------------------------------------------
Level payments
- --------------------------------------------------
Period certain years
-----------------------------
Annuitant's age at
exercise IRAs NQ
- --------------------------------------------------
76 9 10
77 8 10
78 7 10
79 7 10
80 7 10
81 7 9
82 7 8
83 7 7
84 6 6
85 5 5
- --------------------------------------------------
We may also make other forms of payout options available. For a description of
payout options, see "Your annuity payout options" in "Accessing your money"
later in this Prospectus.
- --------------------------------------------------------------------------------
The guaranteed minimum income benefit, which is also known as a living benefit,
should be regarded as a safety net only. It provides income protection if you
elect an income payout while the annuitant is alive.
- --------------------------------------------------------------------------------
When you exercise the guaranteed minimum income benefit, the annual lifetime
income that you will receive will be the greater of (i) your guaranteed minimum
income benefit which is calculated by applying your guaranteed minimum income
benefit base, less any outstanding loans plus accrued interest (applies to
Rollover TSA only), at guaranteed annuity purchase factors, or (ii) the income
provided by applying your actual account value at our then current annuity
purchase factors. The benefit base is applied only to the Living Benefit
guaranteed purchase annuity factors in your contract and not to any other
guaranteed or current annuity purchase rates. The amount of income you actually
receive will be determined when we receive your request to exercise the
benefit.
When you elect to receive annual lifetime income, your contract will terminate
and you will receive a new contract for the annuity payout option. For a
discussion of when your payments will begin and end, see "Exercise of
guaranteed minimum income benefit" below.
Before you elect the Living Benefit, you should consider the fact that the
guaranteed minimum income benefit provides a form of insurance and is based on
conservative actuarial factors. The guaranteed annuity purchase factors we use
to determine your Income Manager benefit under the Living Benefit are more
conservative than the guaranteed annuity purchase factors we use for the Income
Manager payout annuity option. This means that, assuming the same amount is
applied to purchase the benefit and that we use guaranteed annuity purchase
factors to compute the benefit, each periodic payment under the Living Benefit
Income Manager will be smaller than each periodic payment under the Income
Manager payout annuity option. Therefore, even if your account value is less
than your benefit base, you may generate more income by applying your account
value to current annuity purchase factors. We will make this comparison for you
when the need arises.
ILLUSTRATIONS OF GUARANTEED MINIMUM INCOME BENEFIT. Assuming the 6% Roll up to
age 85 benefit base, the table below illustrates the guaranteed minimum income
benefit amounts per $100,000 of initial contribution, for a male annuitant age
60 (at issue) on the contract date anniversaries indicated, who has elected the
life annuity fixed payout option, using the guaranteed annuity purchase factors
as of the date of this Prospectus, assuming no additional contributions,
withdrawals or loans under Rollover TSA contracts, and assuming there were no
allocations to EQ/Alliance Intermediate Government Securities, EQ/Money Market,
the guaranteed interest option, the fixed maturity options or the loan reserve
account under rollover TSA contracts.
- ------------------------------------------------------
Guaranteed minimum income
Contract date benefit -- annual income
anniversary at exercise payable for life
- ------------------------------------------------------
10 $11,891
15 $18,597
- ------------------------------------------------------
EXERCISE OF GUARANTEED MINIMUM INCOME BENEFIT. On each contract date
anniversary that you are eligible to exercise the guaranteed minimum income
benefit, we will send you an eligibility notice illustrating how much income
could be provided as of the contract date anniversary. You must notify us
within 30 days following the contract date anniversary if you want to exercise
the guaranteed minimum income benefit. You must return your contract to us
along with any required information in order to exercise this benefit. You will
begin receiving annual payments one year after the annuity payout contract is
issued. You may choose to take a withdrawal prior to exercising the guaranteed
minimum income benefit, which will reduce your payments. You may not partially
exercise this benefit. See "Accessing your money" under "Withdrawing your
account value" later in this Prospectus. Payments end with the last payment
before the annuitant's (or joint annuitant's, if applicable) death, or if
later, the end of the period certain (where the payout option chosen includes a
period certain).
You will be eligible to exercise the guaranteed minimum income benefit as
follows:
o If the annuitant was at least age 20 and no older than age 44 when the
contract was issued, you are eligible to exercise the guaranteed minimum
income benefit within 30 days following each contract date anniversary
beginning with the 15th contract date anniversary.
o If the annuitant was at least age 45 and no older than age 49 when the
contract was issued, you are eligible to exercise the guaranteed minimum
income benefit within 30 days following each contract date anniversary
after the annuitant is age 60.
o If the annuitant was at least age 50 and no older than age 75 when the
contract was issued, you are eligible to exercise the guaranteed minimum
income benefit within 30 days following each contract date anniversary
beginning with the 10th contract date anniversary.
Please note:
(i) the latest date you may exercise the guaranteed minimum income benefit
is the contract date anniversary following the annuitant's 85th birthday;
and
(ii) if the annuitant was age 75 when the contract was issued, the
Contract features and benefits 29
only time you may exercise the guaranteed minimum income benefit is within
30 days following the first contract date anniversary that it becomes
available;
(iii) if the annuitant was older than age 60 at the time an IRA, QP or
Rollover TSA contract was issued, the Living Benefit may not be an
appropriate feature because the minimum distributions required by tax law
generally must begin before the guaranteed minimum income benefit can be
exercised; and
(iv) for QP and Rollover TSA contracts, if you are eligible to exercise your
guaranteed minimum income benefit, we will first roll over amounts in such
contract to a Rollover IRA contract. You will be the owner of the Rollover
IRA contract.
(v) for a successor owner/annuitant, the earliest exercise date is based on
the original contract issue date and the age of the successor
owner/annuitant as of the Processing Date successor owner/annuitant takes
effect.
Please see both "Termination of your contract" in "Determining your contract
value" and "How withdrawals affect your guaranteed minimum income benefit and
guaranteed minimum death benefit" in "Accessing your money" later in this
Prospectus for more information on these guaranteed benefits.
GUARANTEED MINIMUM DEATH BENEFIT
Your contract provides a death benefit. If you do not elect one of the enhanced
death benefits 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 standard death benefit, whichever provides the highest
amount. The standard death benefit is equal to your total contributions,
adjusted for any withdrawals (and any associated withdrawal charges) and any
taxes that apply.
If you elect one of the enhanced death benefits, the death benefit is equal to
your account value 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 your elected enhanced
death benefit on the date of the annuitant's death (adjusted for any subsequent
withdrawals, withdrawal charges and taxes that apply), whichever provides the
highest amount.
OPTIONAL ENHANCED DEATH BENEFITS APPLICABLE FOR ANNUITANT AGES 0 THROUGH 84 AT
ISSUE OF NQ CONTRACTS; 20 THROUGH 84 AT ISSUE OF ROLLOVER IRA, ROTH CONVERSION
IRA AND ROLLOVER TSA CONTRACTS; 0 THROUGH 70 AT ISSUE OF INHERITED IRA
CONTRACTS; AND 20 THROUGH 75 AT ISSUE OF QP CONTRACTS.
Subject to state availability, you may elect one of the following enhanced
death benefits:
6% ROLL UP TO AGE 85.
ANNUAL RATCHET TO AGE 85.
THE GREATER OF THE 6% ROLL UP TO AGE 85 OR THE ANNUAL RATCHET TO AGE 85.
Each enhanced death benefit is equal to its corresponding benefit base
described earlier in "Your benefit base." Once you have made your enhanced
death benefit election, you may not change it.
In New York only the Standard death benefit and the Annual ratchet to age 85
enhanced death benefit are available.
The standard death benefit is the only death benefit available for annuitants
age 85 at issue of NQ, Rollover IRA, Roth Conversion IRA and Rollover TSA
contracts.
----------------------------------
Please see both "Termination of your contract" in "Determining your contract
value" and "How withdrawals affect your guaranteed minimum income benefit and
guaranteed minimum death benefit" in "Accessing your money" later in this
Prospectus for more information on these guaranteed benefits.
See Appendix IV at the end of this Prospectus for an example of how we
calculate an enhanced death benefit.
Protection Plus
Subject to state and contract availability, if you are purchasing a contract,
under which the Protection Plus feature is available, you may elect the
Protection Plus death benefit at the time you purchase your contract.
Protection Plus provides an additional death benefit as described below. See
the appropriate part of "Tax information" later in this Prospectus for the
potential tax consequences of electing to purchase the Protection Plus feature
in an NQ, IRA or Rollover TSA contract.
If the annuitant is 70 or younger when we issue your contract (or if the
successor owner/annuitant is 70 or younger when he or she becomes the successor
owner/annuitant), the death benefit will be:
the greater of:
o the account value or
o any applicable death benefit
Increased by:
o such death benefit less total net contributions, multiplied by 40%.
For purposes of calculating your Protection Plus benefit, the following
applies: (i) "Net contributions" are the total contributions made (or, if
applicable, the total amount that would otherwise have been paid as a death
benefit had the successor owner/annuitant election not been made plus any
subsequent contributions) reduced on a pro rata basis to reflect withdrawals
(including withdrawal charges and loans). Reduction on a pro rata basis means
that we calculate the percentage of the current account value that is being
withdrawn and we reduce
30 Contract features and benefits
net contributions by that percentage. For example, if the account value is
$30,000 and you withdraw $12,000, you have withdrawn 40% of your account value.
If contributions aggregated $40,000 before the withdrawal, it would be reduced
by $16,000 ($40,000 x .40) and net contributions after the withdrawal would be
$24,000 ($40,000-$16,000); (ii) "Death benefit" is equal to the greater of the
account value as of the date we receive satisfactory proof of death or any
applicable guaranteed minimum death benefit as of the date of death.
If the annuitant is age 71 through 79 when we issue your contract (or if the
successor owner/annuitant is between the ages of 71 and 79 when he or she
becomes the successor owner/annuitant and Protection Plus had been elected at
issue), the death benefit will be:
the greater of:
o the account value or
o any applicable death benefit
Increased by:
o such death benefit (as described above) less total net contributions,
multiplied by 25%.
The value of the Protection Plus death benefit is frozen on the first contract
date anniversary after the annuitant turns age 80, except that the benefit will
be reduced for withdrawals on a pro rata basis. Protection Plus must be elected
when the contract is first issued: neither the owner nor the successor
owner/annuitant can add it subsequently. Ask your financial professional if
this feature is available in your state.
INHERITED IRA BENEFICIARY CONTINUATION CONTRACT
This contract is available to an individual beneficiary of a traditional IRA or
a Roth IRA where the deceased owner held the individual retirement account or
annuity (or Roth individual retirement account or annuity) with an insurance
company or financial institution other than Equitable. The purpose of the
inherited IRA beneficiary continuation contract is to permit the beneficiary to
change the funding vehicle that the deceased owner selected ("original IRA")
while taking the required minimum distribution payments that must be made to
the beneficiary after the deceased owner's death. This contract is intended
only for beneficiaries who want to take payments at least annually over their
life expectancy. These payments generally must begin (or must have begun) no
later than December 31 of the calendar year following the year the deceased
owner died. This contract is not suitable for beneficiaries electing the
"5-year rule." See "Beneficiary continuation option for IRA and Roth IRA
contracts" under "Beneficiary continuation option" in "Payment of death
benefit" later in this Prospectus. You should discuss with your tax adviser
your own personal situation. This contract may not be available in all states.
Please speak with your financial professional for further information.
The inherited IRA beneficiary continuation contract can only be purchased by a
direct transfer of the beneficiary's interest under the deceased owner's
original IRA. The owner of the inherited IRA beneficiary continuation contract
is the individual who is the beneficiary of the original IRA. (Certain trusts
with only individual beneficiaries will be treated as individuals for this
purpose). The contract must also contain the name of the deceased owner. In
this discussion, "you" refers to the owner of the inherited IRA beneficiary
continuation contract.
The inherited IRA beneficiary continuation contract can be purchased whether or
not the deceased owner had begun taking required minimum distribution payments
during his or her life from the original IRA or whether you had already begun
taking required minimum distribution payments of your interest as a beneficiary
from the deceased owner's original IRA. You should discuss with your own tax
adviser when payments must begin or must be made.
Under the inherited IRA beneficiary continuation contract:
o You must receive payments at least annually (but can elect to receive
payments monthly or quarterly). Payments are generally made over your life
expectancy determined in the calendar year after the deceased owner's
death and determined on a term certain basis.
o The beneficiary of the original IRA will be the annuitant under the inherited
IRA beneficiary continuation contract. In the case where the beneficiary
is a "See Through Trust," the oldest beneficiary of the trust will be the
annuitant.
o An inherited IRA beneficiary continuation contract is not available for
annuitants over age 70.
o The initial contribution must be a direct transfer from the deceased owner's
original IRA and is subject to minimum contribution amounts. See "How you
can purchase and contribute to your contract" earlier in this section.
o Subsequent contributions of at least $1,000 are permitted but must be direct
transfers of your interest as a beneficiary from another IRA with a
financial institution other than Equitable, where the deceased owner is
the same as under the original IRA contract.
o You may make transfers among the investment options.
o You may choose at any time to withdraw all or a portion of the account value.
Any partial withdrawal must be at least $300. Withdrawal charges, if
applicable under your contract, will apply as described in "Charges and
expenses" later in this Prospectus.
o The Living benefit, successor owner/annuitant feature, special dollar cost
averaging program (if applicable), automatic investment program and
systematic withdrawals are not available under the Inherited IRA
beneficiary continuation contract.
o If you die, we will pay to a beneficiary that you choose the greater of the
annuity account value or the applicable death benefit.
o Upon your death, your beneficiary has the option to continue taking required
minimum distributions based on your remaining life expectancy 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. If your beneficiary
elects to continue to take distributions, we will increase the account
value to equal the applicable death benefit if such death benefit is
greater than such account value as of the date we receive satisfactory
proof of death and any required instructions, information and forms.
Thereafter, withdrawal charges (if applicable under your contract) will no
longer apply. If you had elected any enhanced death benefits, they will no
longer be
Contract features and benefits 31
in effect and charges for such benefits will stop. The minimum guaranteed
death benefit will also no longer be in effect.
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, with a signed letter of instruction electing this right, to our
processing office within 10 days after you receive it. If state law requires,
this "free look" period may be longer.
Generally, your refund will equal your account value under the contract on the
day we receive notification of your decision to cancel the contract and will
reflect (i) any investment gain or loss in the variable investment options
(less the daily charges we deduct), (ii) any guaranteed interest in the
guaranteed interest option, (iii) any positive or negative market value
adjustments in the fixed maturity options through the date we receive your
contract, and (iv) any interest in the account for special dollar cost
averaging through the date we receive your contract. Some states require that
we refund the full amount of your contribution (not reflecting (i), (ii),
(iii), or (iv) above). For any IRA contract 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 may 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 and in the SAI for
possible consequences of cancelling your contract.
In addition to the cancellation right described above, if you fully convert an
existing traditional IRA contract to a Roth Conversion IRA contract, you may
cancel your Roth Conversion IRA contract and return to a Rollover IRA contract.
Our processing office, or your financial professional, can provide you with the
cancellation instructions.
32 Contract features and benefits
2. Determining your contract's value
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YOUR ACCOUNT VALUE AND CASH VALUE
Your "account value" is the total of the values you have in: (i) the variable
investment options; (ii) the guaranteed interest option; (iii) market adjusted
amounts in the fixed maturity options; (iv) the account for special dollar cost
averaging and (v) the loan reserve account (applicable to Rollover TSA
contracts only).
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) the
total amount or a pro rata portion of the annual administrative charge, as well
as optional benefit charges; (ii) any applicable withdrawal charges and (iii)
the amount of any outstanding loan plus accrued interest (applicable to
Rollover TSA contracts only). Please see "Surrendering 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.
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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, less daily charges for:
(i) mortality and expense;
(ii) administrative expenses; and
(iii) distribution charges.
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);
(iii) increased to reflect a transfer into, or decreased to reflect a
transfer out of, a variable investment option; or
(iv) increased or decreased to reflect a transfer of your loan amount from
or to the loan reserve account under a Rollover TSA contract.
In addition, when we deduct the enhanced death benefits Living Benefit charge
and/or the Protection Plus benefit charges, the number of units credited to
your contract will be reduced. Your units are also reduced when we deduct the
annual administrative charge. 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
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, provided there have been no
withdrawals. 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, provided there have been no withdrawals or transfers.
YOUR CONTRACT'S VALUE IN THE ACCOUNT FOR SPECIAL DOLLAR COST AVERAGING
Your value in the account for special dollar cost averaging at any time will
equal your contribution allocated to that option, plus interest, less the sum
of all amounts that have been transferred to the variable investment options
you have selected.
TERMINATION OF YOUR CONTRACT
Your contract will terminate without value if your account value is
insufficient to pay any applicable charges when due. Your account value could
become insufficient due to withdrawals and/or poor market performance. Upon
such termination, you will lose any applicable guaranteed benefits.
Determining your contract's value 33
3. Transferring your money among investment options
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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 may not transfer any amount to the account for special dollar cost
averaging.
o You may not transfer to a fixed maturity option that has a rate to maturity
of 3% or less.
o If the annuitant is age 76-80, you must limit your transfers to fixed
maturity options with maturities of seven years or less. If the annuitant
is age 81 or older, you must limit your transfers to fixed maturity
options of five years or less. As of February 13, 2004, maturities of less
than 8 years were not available. Also, the maturity dates may be no 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 During the first contract year, transfers into the guaranteed interest option
are not permitted.
o After the first contract year, a transfer into the guaranteed interest option
will not be permitted if such transfer would result in more than 25% of
the annuity account value being allocated to the guaranteed interest
option, based on the annuity account value as of the previous business
day.
In addition, we reserve the right to restrict transfers among variable
investment options as described in your contract, including limitations on the
number, frequency, or dollar amount of transfers.
The maximum amount that may be transferred from the guaranteed interest option
to any investment option (including amounts transferred pursuant to the
fixed-dollar option and interest sweep option dollar cost averaging programs
described under "Allocating your contributions" in "Contract features and
benefits" earlier in this Prospectus) in any contract year is the greatest of:
(a) 25% of the amount you have in the guaranteed interest option on the last
day of the prior contract year; or,
(b) the total of all amounts transferred at your request from the guaranteed
interest option to any of the investment options in the prior contract
year; or
(c) 25% of amounts transferred or allocated to the guaranteed interest option
during the current contract year.
From time to time, we may remove the restrictions regarding transferring
amounts out of the guaranteed interest option. 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,
if any dollar cost averaging transfer out of the guaranteed interest option
causes a violation of the 25% outbound restriction, that dollar cost averaging
program will be terminated for the current contract year. A new dollar cost
averaging program can be started in the next or subsequent contract years.
You may request a transfer in writing, by telephone using TOPS or through
EQAccess. You must send in all written transfer requests directly to our
processing office. Transfer requests should specify:
(1) the contract number,
(2) the dollar amounts or percentages of your current account value 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 Accumulator(R) Elite(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.
Frequent transfers, including market timing and other program trading
strategies, may be disruptive to the underlying portfolios in which the
variable investment options invest. Disruptive transfer activity may hurt the
long term performance of a portfolio by, for example, requiring it to maintain
larger amounts of cash or to liquidate portfolio holdings at a disadvantageous
time or price. We currently use the procedures described below to discourage
disruptive transfer activity in AXA Premier VIP Trust and EQ Advisors Trust.
You should understand, however, that these procedures are subject to the
following limitations: (1) they do not eliminate the possibility that
disruptive transfer activity, including market timing, will occur or that
portfolio performance will be affected by such activity; (2) the design of
these procedures involves inherently subjective judgments, which we and AXA
Premier VIP Trust and EQ Advisors Trust seek to make in a fair and reasonable
manner consistent with interests of all policy and contract owners. Certain
frequent transfer activities attempt to exploit inefficiencies in how portfolio
securities are valued. Please see the prospectuses for the underlying
portfolios for more information on how portfolio shares are priced.
If we determine that your transfer patterns are disruptive, 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. 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 reduce disruptive activity, we
monitor the frequency of transfers, including the size of transfers in relation
to portfolio assets, in each underlying portfolio. When a
34 Transferring your money among investment options
potentially disruptive transfer into or out of a portfolio occurs on a day when
the portfolio's aggregate deposits or aggregate redemptions exceed our
monitoring threshold, we may take the actions described above to restrict
availability of voice, fax and automated transaction services. We currently
apply such action for the remaining life of each affected contract. We also
currently provide a letter to owners who have engaged in disruptive transfer
activity of our intention to restrict access to communication 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 potentially
disruptive transfer activity and our monitoring procedures and thresholds, as
well as change our procedures to restrict this activity.
Our ability to monitor potentially disruptive transfer activity is limited in
certain circumstances. Group annuity contracts may be owned by retirement plans
on whose behalf we provide transfer instructions on an omnibus (aggregate)
basis, which may mask the disruptive transfer activity of individual plan
participants, and/or interfere with our ability to restrict communication
services. Also, underlying portfolios that are not in AXA Premier VIP Trust or
EQ Advisors Trust may be available for investment through companies that may
have policies and procedures regarding disruptive transfer activity that are
different from ours. Please see the prospectuses for those underlying
portfolios for more information.
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 on a contract year basis).
Rebalancing will occur on the same day of the month as the contract date. If a
contract is established after the 28th, rebalancing will occur on the first
business day of the month following the contract issue date.
While your rebalancing program is in effect, we will transfer amounts among the
variable investment options 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.
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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. 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; your rebalancing allocations will not be changed, and
the rebalancing program will remain in effect unless you request that it be
canceled in writing. There is no charge for the rebalancing feature.
You may not elect the rebalancing program if you are participating in any
dollar cost averaging program. Rebalancing is not available for amounts you
have allocated in the guaranteed interest option or the fixed maturity options.
Transferring your money among investment options 35
4. Accessing your money
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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. If you withdraw more than 90% of a
contract's current cash value, we will treat it as a request to surrender the
contract for its cash value. See "Surrendering your contract to receive its
cash value" below. For the tax consequences of withdrawals, see "Tax
information" later in this Prospectus and in the SAI.
Please see "Termination of your contract" in "Determining your contract's
value" earlier in this Prospectus and "How withdrawals affect your guaranteed
minimum income benefit and guaranteed minimum death benefit" below for more
information on how withdrawals affect your guaranteed benefits and could
potentially cause your contract to terminate.
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Method of withdrawal
-------------------------------------------------------------
Lifetime
required
Substantially minimum
Contract Lump sum Systematic equal distribution
- --------------------------------------------------------------------------------
NQ Yes Yes No No
- --------------------------------------------------------------------------------
Rollover IRA Yes Yes Yes Yes
- --------------------------------------------------------------------------------
Roth
Conversion
IRA Yes Yes Yes No
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Inherited IRA Yes No No **
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QP Yes No No Yes
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Rollover
TSA* Yes Yes No Yes
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* For some Rollover TSA contracts, your ability to take withdrawals, loans or
surrender your contract may be limited. You must provide withdrawal
restriction information when you apply for a contract. See "Tax Sheltered
Annuity contracts (TSAs)" in "Tax information" later in this Prospectus
and in the SAI.
** This contract pays out post-death required minimum distributions. See
"Inherited IRA beneficiary continuation contract" in "Contract features
and benefits" earlier in this Prospectus.
LUMP SUM WITHDRAWALS
(All contracts)
You may take lump sum withdrawals from your account value at any time.
(Rollover TSA contracts may have restrictions.) The minimum amount you may
withdraw is $300.
Lump sum withdrawals will be subject to a withdrawal charge if they exceed the
10% free withdrawal amount (see "10% free withdrawal amount" in "Charges and
expenses" later in this Prospectus). Under Rollover TSA contracts, if a loan is
outstanding, you may only take lump sum withdrawals as long as the cash value
remaining after any withdrawal equals at least 10% of the outstanding loan plus
accrued interest.
SYSTEMATIC WITHDRAWALS
(NQ, Rollover TSA, Rollover IRA and Roth Conversion IRA contracts)
You may take systematic withdrawals of a particular dollar amount or a
particular percentage of your account value. (Rollover TSA contracts may have
restrictions).
You may take systematic withdrawals on a monthly, quarterly or annual basis as
long as the withdrawals do not exceed the following percentages of your account
value: 0.8% monthly, 2.4% quarterly and 10.0% annually. The minimum amount you
may take in each systematic withdrawal is $250. If the amount withdrawn would
be less than $250 on the date a withdrawal is to be taken, we will not make a
payment and we will terminate your systematic withdrawal election.
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, we
will make the withdrawals on the same calendar day of the month as the contract
date. You must wait at least 28 days after your contract is issued before your
systematic withdrawals can begin.
You may elect to take systematic withdrawals at any time. If you own an IRA
contract, you may elect this withdrawal method only if you are between ages
59-1/2 and 70-1/2.
You may change the payment frequency, or the amount or percentage of your
systematic withdrawals, once each contract year. However, you may not change
the amount or percentage in any contract year in which you have already taken a
lump sum withdrawal. You can cancel the systematic withdrawal option at any
time.
Systematic withdrawals are not subject to a withdrawal charge, except to the
extent that, when added to a lump sum withdrawal previously taken in the same
contract year, the systematic withdrawal exceeds the 10% free withdrawal
amount.
SUBSTANTIALLY EQUAL WITHDRAWALS
(Rollover IRA and Roth Conversion IRA contracts)
We offer our "substantially equal withdrawals option" to allow you to receive
distributions from your account value without triggering the 10% additional
federal income tax penalty, which normally applies to distributions made before
age 59-1/2. See "Tax information" later in this Prospectus and in the SAI. We
use one of the IRS-approved methods for doing this; this is not the exclusive
method of meeting this exception. After consultation with your tax adviser, you
may decide to use another method which would require you to compute amounts
yourself and request lump sum withdrawals. In such a case, a withdrawal charge
may apply. Once you begin to take substantially equal withdrawals, you should
not stop them or change the pattern of your withdrawals until after the later
of age 59-1/2 or five full years after the first withdrawal. If you stop or
change the withdrawals or take a lump sum withdrawal, you may be liable for the
10% federal tax penalty that would have otherwise been due on prior withdrawals
made under this option and for any interest on the delayed payment of the
penalty.
36 Accessing your money
In accordance with IRS guidance, an individual who has elected to receive
substantially equal withdrawals may change, without penalty, from one of the
IRS-approved methods of calculating fixed payments to another IRS-approved
method (similar to the required minimum distribution rules) of calculating
payments which vary each year.
You may elect to take substantially equal withdrawals at any time before age
59-1/2. 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. You may not elect to
receive the first payment in the same contract year in which you took a lump
sum withdrawal. We will calculate the amount of your substantially equal
withdrawals using the IRS-approved method we offer. The payments will be made
monthly, quarterly or annually as you select. These payments will continue
until we receive written notice from you to cancel this option or you take a
lump sum withdrawal. You may elect to start receiving substantially equal
withdrawals again, but the payments may not restart in the same contract year
in which you took a lump sum withdrawal. We will calculate the new withdrawal
amount.
Substantially equal withdrawals are not subject to a withdrawal charge.
LIFETIME REQUIRED MINIMUM DISTRIBUTION WITHDRAWALS
(Rollover IRA, QP and Rollover TSA contracts only -- See "Tax information"
later in this Prospectus and in the SAI)
We offer the minimum distribution withdrawal option to help you meet 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 or in any later year. The
minimum amount we will pay out is $250. Currently, minimum distribution
withdrawal payments will be made annually. See "Required minimum distributions"
in "Tax information" later in this Prospectus and in the SAI for your specific
type of retirement arrangement.
Currently, we do not impose a withdrawal charge on minimum distribution
withdrawals if you are enrolled in our "automatic required minimum distribution
(RMD) service" except if, when added to a lump sum withdrawal previously taken
in the same contract year, the minimum distribution withdrawal exceeds the 10%
free withdrawal amount.
Under Rollover TSA contracts, you may not elect minimum distribution
withdrawals if a loan is outstanding.
- --------------------------------------------------------------------------------
For Rollover IRA and Rollover TSA contracts, 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).
- --------------------------------------------------------------------------------
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 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)
first. A market value adjustment may apply to withdrawals from the fixed
maturity options. If the FMO amounts are insufficient, we will deduct all or a
portion of the withdrawal from the account for special dollar cost averaging.
HOW WITHDRAWALS AFFECT YOUR GUARANTEED MINIMUM INCOME BENEFIT AND GUARANTEED
MINIMUM DEATH BENEFIT
Withdrawals will reduce your guaranteed benefits on either a dollar-for-dollar
basis or on a pro rata basis as explained below:
INCOME BENEFIT AND DEATH BENEFIT
Your applicable benefit base will be reduced on a dollar-for-dollar basis as
long as the sum of your withdrawals in a contract year is 6% or less of the
applicable benefit base on the most recent contract date anniversary. Any
portion of a withdrawal that causes the sum of your withdrawals in a contract
year to exceed 6% of the applicable benefit base on the most recent contract
date anniversary, and any subsequent withdrawals in that same contract year
will reduce your applicable benefit base on a pro rata basis.
The timing of your withdrawals and whether they exceed the 6% threshold
described above can have significant impact on your guaranteed minimum income
benefit or guaranteed minimum death benefit.
----------------------------------
Reduction on a dollar-for-dollar basis means that your current benefit will be
reduced by the dollar amount of the withdrawal. 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 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 death benefit was $40,000 before
the withdrawal, it would be reduced by $16,000 ($40,000 x .40) and your new
death benefit after the withdrawal would be $24,000 ($40,000 - $16,000). This
pro rata example assumes that the annual 6% threshold described above has
already been exceeded.
LOANS UNDER ROLLOVER TSA CONTRACTS
You may take loans from a Rollover TSA unless restricted by the employer who
provided the Rollover TSA funds. If you cannot take a loan, or cannot take a
loan without approval from the employer who provided the funds, we will have
this information in our records based on what you and the employer who provided
the funds told us when you purchased your contract. The employer must also tell
us whether special employer plan rules of the Employee Retirement Income
Security Act of 1974 ("ERISA") apply. We will not permit you to take a loan
while you are enrolled in our "automatic required minimum distribution (RMD)
service."
You should read the terms and conditions on our loan request form carefully
before taking out a loan. Under Rollover TSA contracts subject to ERISA, you
may only take a loan with the written consent of your spouse. Your contract
contains further details of the loan provision. Also, see "Tax information"
later in this Prospectus and in the SAI for general rules applicable to loans.
Accessing your money 37
We will permit you to have only one loan outstanding at a time. The minimum
loan amount is $1,000. The maximum amount is $50,000 or, if less, 50% of your
account value, subject to any limits under the federal income tax rules. The
term of a loan is five years. However, if you use the loan to acquire your
primary residence, the term is 10 years. The term may not extend beyond the
earliest of:
(1) the date annuity payments begin,
(2) the date the contract terminates, and
(3) the date a death benefit is paid (the outstanding loan will be deducted
from the death benefit amount).
A loan request under your Rollover TSA contract will be processed on the first
business day of the month following the date on which the properly completed
loan request form is received. Interest will accrue daily on your outstanding
loan at a rate we set. The loan interest rate will be equal to the Moody's
Corporate Bond Yield Averages for Baa bonds for the calendar month ending two
months before the first day of the calendar quarter in which the rate is
determined.
LOAN RESERVE ACCOUNT. On the date your loan is processed, we will transfer the
amount of your loan to the loan reserve account. Unless you specify otherwise,
we will subtract your loan on a pro rata basis from your value in the variable
investment options and the guaranteed interest option. If these amounts are
insufficient, any additional amount of the loan will be subtracted from the
fixed maturity options in order of the earliest maturity date(s) first. A
market value adjustment may apply. If the FMO amounts are insufficient, we will
deduct all or a portion of the loan from the account for special dollar cost
averaging.
We will credit interest to the amount in the loan reserve account at a rate of
2% lower than the loan interest rate that applies for the time your loan is
outstanding. On each contract date anniversary after the date the loan is
processed, we will transfer the amount of interest earned in the loan reserve
account to the variable investment options on a pro rata basis. When you make a
loan repayment, unless you specify otherwise, we will transfer the dollar
amount of the loan repaid from the loan reserve account to the investment
options according to the allocation percentages we have on our records.
SURRENDERING 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. (Rollover
TSA contracts may have restrictions.) 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.
For the tax consequences of surrenders, see "Tax information" later in this
Prospectus and in the SAI.
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, payment of a death benefit, payment of any amount you
withdraw (less any withdrawal charges) and, upon surrender, 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 value in the guaranteed interest
option, fixed maturity options and the account for special dollar cost
averaging (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 10 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
Equitable Accumulator(R) Elite(SM) offers you several choices of annuity payout
options. Some enable you to receive fixed annuity payments, which can be either
level or increasing, 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. In addition, if you are exercising your guaranteed minimum
income benefit under the Living Benefit, your choice of payout options are
those that are available under the Living Benefit (see "Our Living Benefit
option" in "Contract features and benefits" earlier in this Prospectus).
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Fixed annuity payout options Life annuity
Life annuity with period
certain
Life annuity with refund
certain
Period certain annuity
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Variable Immediate Annuity Life annuity (not available
payout options in New York)
Life annuity with period
certain
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Income Manager payout options Life annuity with period
(available for annuitants age 83 certain
or less at contract issue) Period certain annuity
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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
38 Accessing your money
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. 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.
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 guaranteed 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 OPTIONS
With fixed annuities, we guarantee fixed annuity payments will be based either
on the tables of guaranteed annuity purchase factors in your contract or on our
then current annuity purchase factors, 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 Immediate Annuities may be funded through your choice of available
variable investment options investing in portfolios of EQ Advisors Trust and
AXA Premier VIP Trust. The contract also offers a fixed income annuity payout
option that can be elected in combination with the variable annuity payout
option. The amount of each variable income 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.
INCOME MANAGER PAYOUT OPTIONS
The Income Manager payout annuity contracts differ from the other payout
annuity contracts. The other payout annuity contracts may provide higher or
lower income levels, but do not have all the features of the Income Manager
payout annuity contract. You may request an illustration of the Income Manager
payout annuity contract from your financial professional. Income Manager payout
options are described in a separate prospectus that is available from your
financial professional. Before you select an Income Manager payout option, you
should read the prospectus which contains important information that you should
know.
Both NQ and IRA Income Manager payout options provide guaranteed level
payments. The Income Manager (life annuity with period certain) also provides
guaranteed increasing payments (NQ contracts only). You may not elect an Income
Manager payout option without life contingencies unless withdrawal charges are
no longer in effect under your contract.
For QP and Rollover TSA contracts, if you want to elect an Income Manager
payout option, we will first roll over amounts in such contract to a Rollover
IRA contract with the plan participant as owner.
You may choose to apply your account value of your Equitable Accumulator(R)
Elite(SM) contract to an Income Manager payout annuity. In this case, we will
consider any amounts applied as a withdrawal from your Equitable Accumulator(R)
Elite(SM), and we will deduct any applicable withdrawal charge. For the tax
consequences of withdrawals, see "Tax information" later in this Prospectus and
in the SAI.
Depending upon your circumstances, an Income Manager contract may be purchased
on a tax-free basis. Please consult your tax adviser. The Income Manager payout
options are not available in all states.
If you purchase an Income Manager contract in connection with the exercise of
the Living Benefit option, different payout options may apply as well as other
various differences. See "Our Living Benefit Option" in "Contract features and
benefits" earlier in this Prospectus as well as the Income Manager Prospectus.
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 Immediate 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 under our
contract is imposed if you select a period certain. If the period certain is
more than 5 years, then the withdrawal charge deducted will not exceed 5% of
the account value.
Accessing your money 39
For the Income Manager life contingent payout options no withdrawal charge is
imposed under your contract. If the withdrawal charge that otherwise would have
been applied to your account value under your contract is greater than 2% of
the contributions that remain in your contract at the time you purchase your
payout option, the withdrawal charges under the Income Manager will apply. The
year in which your account value is applied to the payout option will be
"contract year 1."
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. The contract owner and annuitant
must meet the issue age and payment requirements.
You can choose the date annuity payments begin but it may not be earlier than
thirteen months from the Equitable Accumulator(R) Elite(SM) contract date.
Except with respect to the Income Manager annuity payout options, where payments
are made on the 15th day of each month, 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 annuity maturity date described below.
The amount of the annuity payments will depend on the amount applied to
purchase the annuity and the applicable annuity purchase factors, discussed
earlier.
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.
ANNUITY MATURITY AGE
Your contract has a maturity date by which you must either take a lump sum
withdrawal or select an annuity payout option. The maturity date is generally
the contract date anniversary that follows the annuitant's 95th birthday.
For contracts issued in Pennsylvania and New York, the maturity date is related
to the contract issue date, as follows:
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New York Pennsylvania
- --------------------------------------------------------------------------------
Maximum Maximum
annuitization annuitization
Issue age age Issue age age
- --------------------------------------------------------------------------------
0-80 90 0-75 85
81 91 76 86
82 92 77 87
83 93 78-80 88
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
New York Pennsylvania
- --------------------------------------------------------------------------------
Maximum Maximum
annuitization annuitization
Issue age age Issue age age
- --------------------------------------------------------------------------------
84 94 81-85 90
85 95
- --------------------------------------------------------------------------------
Before the last day 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: (i) transfers (if permitted in
the future) among the variable investment options if a Variable Immediate
Annuity payout option is selected; and (ii) withdrawals or contract surrender
(subject to a market value adjustment) if an Income Manager payout option is
chosen.
40 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 An administrative charge
o A distribution charge
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 each contract date anniversary -- an annual administrative charge, if
applicable.
o At the time you make certain withdrawals or surrender your contract -- a
withdrawal charge.
o On each contract date anniversary -- a charge if you elect a death benefit
(other than the Standard death benefit).
o On each contract date anniversary -- a charge for the Living Benefit, if you
elect this optional 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.
o On each contract date anniversary -- a charge for Protection Plus, if you
elect this optional benefit.
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.
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 Standard death
benefit. The daily charge is equivalent to an annual rate of 1.10% 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 income 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. Lastly,
we assume a mortality risk to the extent that at the time of death, the
guaranteed minimum 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.
ADMINISTRATIVE CHARGE
We deduct a daily charge from the net assets in each variable investment option
to compensate us for administrative expenses under the contracts. The daily
charge is equivalent to an annual rate of 0.25% of the net assets in each
variable investment option.
DISTRIBUTION CHARGE
We deduct a daily charge from the net assets in each variable investment option
to compensate us for a portion of our sales expenses under the contracts. The
daily charge is equivalent to an annual rate of 0.25% of the net assets in each
variable investment option.
ANNUAL ADMINISTRATIVE CHARGE
We deduct an administrative charge from your account value on each contract
date anniversary. We deduct the charge if your account value on the last
business day of the contract year is less than $50,000. If your account value
on such date is $50,000 or more, we do not deduct the charge. During the first
two contract years, the charge is equal to $30 or, if less, 2% of your account
value. The charge is $30 for contract years three and later.
We will deduct this charge from your value in the variable investment options
and the guaranteed interest option (if permitted in your state) on a pro rata
basis. If those amounts are insufficient, we will deduct all or a portion of
the charge from the fixed maturity options in order of the earliest maturity
date(s) first. A market value adjustment may apply. If the FMO amounts are
insufficient, we will deduct all or a portion of the charge from the account
for special dollar cost averaging. If you surrender your contract during the
contract year, we will deduct a pro rata portion of the charge.
If your account value is insufficient to pay this charge, your contract will
terminate without value and you will lose any applicable guaranteed benefits.
Please see "Termination of your contract" in "Determining your contract's
value" earlier in this Prospectus.
WITHDRAWAL CHARGE
A withdrawal charge applies in two circumstances:
(1) if you make one or more withdrawals during a contract year that, in total,
exceeds the 10% free withdrawal amount, described below, or (2) if you
surrender your contract to receive its cash value or to apply your cash value
to a non-life contingent annuity payout option..
The withdrawal charge equals a percentage of the contributions withdrawn in any
of the first four years after we receive a contribution. We determine the
withdrawal charge separately for each contribution
Charges and expenses 41
according to the following table:
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Contract year
- --------------------------------------------------------------------------------
1 2 3 4 5
- --------------------------------------------------------------------------------
Percentage of contribution 8 % 7 % 6 % 5 % 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 withdrawals 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 your contract as withdrawn first. See "Tax
information" later in this Prospectus and in the SAI.
In order to give you the exact dollar amount of the withdrawal you request, we
deduct the amount of the withdrawal and withdrawal charge from your account
value. The amount deducted to pay withdrawal charges is also subject to that
same withdrawal charge percentage. We deduct the charge in proportion to the
amount of the withdrawal subtracted from each investment option. The withdrawal
charge helps cover sales expenses.
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 beginning of each contract
year, or in the case of the first contract year, your initial contribution,
minus any other withdrawals made during the contract year. The 10% free
withdrawal amount does not apply if you surrender your contract except where
required by law.
For NQ contracts issued to a charitable remainder trust, the free withdrawal
amount will equal the greater of: (1) the current account value less
contributions that have not been withdrawn (earnings in the contract), and (2)
the 10% free withdrawal amount defined above.
Disability, terminal illness or confinement to nursing home. The withdrawal
charge 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, or U.S.
Virgin Islands) 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, if the conditions as described in (i), (ii)
or (iii) above existed at the time a contribution was remitted or if the
condition began within 12 months of the 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 ALL 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
7% and will be determined by applying the New York Alternate Scale I shown
below. If you withdraw amounts that have been transferred from one fixed
maturity option to another, we use the New York Alternate Scale II (also shown
below) if it produces a higher charge than Alternate Scale I.
The New York withdrawal charge may not exceed the withdrawal charge that would
normally apply to the contract. If a contribution has been in the contract for
more than 4 years and therefore would have no withdrawal charge, no withdrawal
charge will apply. Use of a New York Alternate Scale can only result in a lower
charge. We will compare the result of applying Alternate Scale I or II, as the
case may be, to the result of applying the normal withdrawal charge, and will
charge the lower withdrawal charge.
- ------------------------------------------------------------------------------------------------------------------------------------
NY Alternate Scale I NY Alternate Scale II
- ------------------------------------------------------------------------------------------------------------------------------------
Year of investment in fixed maturity Year of transfer within fixed maturity
option* option*
- ------------------------------------------------------------------------------------------------------------------------------------
Within year 1 7% Within year 1 5%
- ------------------------------------------------------------------------------------------------------------------------------------
2 6% 2 4%
- ------------------------------------------------------------------------------------------------------------------------------------
3 5% 3 3%
- ------------------------------------------------------------------------------------------------------------------------------------
4 4% 4 2%
- ------------------------------------------------------------------------------------------------------------------------------------
After year 5 0% After year 5 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.
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.
42 Charges and expenses
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 with the shortest available maturity. If we are not
offering other fixed maturity options, we will transfer your maturity value to
the EQ/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 what
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.
We will deduct the annual administrative charge and the withdrawal charge from
the variable investment options and the guaranteed interest option as discussed
above. If the amounts in those options are insufficient to cover the charges,
we reserve the right to deduct the charge from the fixed maturity options.
Charges deducted from the fixed maturity options are considered withdrawals
and, as such, will result in a market value adjustment.
GUARANTEED MINIMUM DEATH BENEFIT CHARGE
Annual ratchet to age 85. If you elect the Annual ratchet to age 85 enhanced
death benefit, we deduct a charge annually from your account value on each
contract date anniversary for which it is in effect. The charge is equal to
0.30% of the Annual ratchet to age 85 benefit base.
6% Roll up to age 85. If you elect the 6% Roll up to age 85 enhanced death
benefit, we deduct a charge annually from your account value on each contract
date anniversary for which it is in effect. The charge is equal to 0.45% of the
6% Roll up to age 85 benefit base.
Greater of 6% Roll up to age 85 or Annual ratchet to age 85. If you elect this
enhanced death benefit, we deduct a charge annually from your account value on
each contract date anniversary for which it is in effect. The charge is equal
to 0.60% of the greater of the 6% Roll up to age 85 or the Annual ratchet to
age 85 benefit base.
We will deduct this charge from your value in the variable investment options
and the guaranteed interest option on a pro-rata basis. If those amounts are
insufficient, we will deduct all or a portion of the charge from the fixed
maturity options in order of the earliest maturity date(s) first. A market
value adjustment may apply. If the FMO amounts are insufficient, we will deduct
all or a portion of the charge from the account for special dollar cost
averaging.
If your account value is insufficient to pay this charge, your contract will
terminate without value and you will lose any applicable guaranteed benefits.
Please see "Termination of your contract" in "Determining your contract's
value" earlier in this Prospectus.
There is no additional charge for the Standard death benefit.
LIVING BENEFIT CHARGE
If you elect the Living Benefit, we deduct a charge annually from your account
value on each contract date anniversary until such time as you exercise the
guaranteed minimum income benefit, elect another annuity payout option, or the
contract date anniversary after the annuitant reaches 85, whichever occurs
first. The charge is equal to 0.60% of the applicable benefit base in effect on
the contract date anniversary.
We will deduct this charge from your value in the variable investment options
and the guaranteed interest option on a pro rata basis. If those amounts are
insufficient, we will deduct all or a portion of the charge from the fixed
maturity options in order of the earliest maturity date(s) first. A market
value adjustment may apply. If the FMO amounts are insufficient, we will deduct
all or a portion of the charge from the account for special dollar cost
averaging.
If your account value is insufficient to pay this charge, your contract will
terminate without value and you will lose any applicable guaranteed benefits.
Please see "Termination of your contract" in "Determining your contract's
value" earlier in this Prospectus.
PROTECTION PLUS CHARGE
If you elect Protection Plus, we deduct a charge annually from your account
value on each contract date anniversary for which it is in effect. The charge
is equal to 0.35% of the account value on each contract date anniversary. We
will deduct this charge from your value in the variable investment options and
the guaranteed interest option on a pro rata basis. If those amounts are
insufficient, we will deduct all or a portion of the charge from the fixed
maturity options in the order of the earliest maturity date(s) first. A market
value adjustment may apply. If the FMO amounts are insufficient, we will deduct
all or a portion of the charge from the account for special dollar cost
averaging.
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 jurisdiction and ranges from 0% to 3.5%.
VARIABLE IMMEDIATE ANNUITY PAYOUT OPTION ADMINISTRATIVE FEE
We deduct a fee of $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 Management fees ranging from 0.10% to 1.50%.
o 12b-1 fees of either 0.25% or 0.35%.
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 prospectuses for the Trusts.
Charges and expenses 43
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 guaranteed minimum income
benefit or the guaranteed minimum death benefit, or offer variable investment
options that invest in shares of the Trusts 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 Rollover IRA and Roth Conversion 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,
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.
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 would be
unfairly discriminatory.
44 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 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. You may be
limited as to the beneficiary you can designate in a Rollover TSA contract. In
a QP contract, the beneficiary must be the trustee. Where an NQ contract is
owned by a minor pursuant to the Uniform Gift to Minors Act or the Uniform
Transfers to Minors Act, the beneficiary must be the estate of the annuitant.
Where an IRA contract is owned in a custodial individual retirement account,
the custodian must be the beneficiary so that the custodian can reinvest or
distribute the death benefit as the beneficiary of the account desires.
The death benefit is equal to your account value (without adjustment for any
otherwise applicable negative market value adjustment) or, if greater, the
applicable guaranteed minimum death benefit. We determine the amount of the
death benefit (other than the applicable guaranteed minimum death benefit) and
any amount applicable under the Protection Plus feature, 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.
The amount of the applicable guaranteed minimum death benefit will be such
guaranteed minimum death benefit as of the date of the annuitant's death,
adjusted for any subsequent withdrawals. The death benefit will be less a
deduction for any outstanding loan plus accrued interest on the date that the
death benefit payment is made (applies to Rollover TSA only).
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, a
surviving spouse of the deceased owner/annuitant can choose to be treated as
the successor owner/annuitant and continue the contract. Only a spouse who is
the sole primary beneficiary can be a successor owner/annuitant. The successor
owner/annuitant feature is only available under NQ and individually owned IRA
(other than Inherited IRAs) contracts. See "Inherited IRA beneficiary
continuation contract" in "Contract features and benefits" earlier in this
Prospectus.
For NQ and 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.
When the owner is not the annuitant under an NQ contract and the owner dies
before annuity payments begin, the beneficiary named to receive this death
benefit upon the annuitant's death will become the successor owner. If you do
not want this beneficiary 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. The surviving
owner automatically takes the place of any other beneficiary designation.
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. An eligible successor owner,
including a surviving joint owner after the first owner dies, may elect the
beneficiary continuation option for NQ contracts discussed in "Beneficiary
continuation option" below.
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.
SUCCESSOR OWNER AND ANNUITANT
If you are both the contract owner and the annuitant, and your spouse is the
sole primary beneficiary or the joint owner, then your spouse may elect to
receive the death benefit or continue the contract as successor
owner/annuitant.
If your surviving spouse decides to continue the contract, then as of the date
we receive satisfactory proof of your death, any required
Payment of death benefit 45
instructions, information and forms necessary to effect the successor
owner/annuitant feature, we will increase the account value to equal your
elected guaranteed minimum death benefit as of the date of your death if such
death benefit is greater than such account value, plus any amount applicable
under the Protection Plus feature and adjusted for any subsequent withdrawals.
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 considered to be withdrawn
only after all other amounts have been withdrawn. In determining whether your
applicable guaranteed minimum death benefit option will continue to grow, we
will use your surviving spouse's age (as of the date we receive satisfactory
proof of your death, any required instructions and the information and forms
necessary to effect the successor owner/annuitant feature).
Where an NQ contract is owned by a Living Trust, as defined in the contract,
and at the time of the annuitant's death the annuitant's spouse is the sole
beneficiary of the Living Trust, the Trustee, as owner of the contract, may
request that the spouse be substituted as annuitant as of the date of the
annuitant's death. No further change of annuitant will be permitted.
Where an IRA contract is owned in a custodial individual retirement account,
and your spouse is the sole beneficiary of the account, the custodian may
request that the spouse be substituted as annuitant after your death.
BENEFICIARY CONTINUATION OPTION
This feature permits a designated individual, on the contract owner's death, to
maintain a contract in the deceased contract owner's 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, Roth IRA and NQ contracts, subject to state availability. Please speak
with your financial professional for further information.
BENEFICIARY CONTINUATION OPTION FOR TRADITIONAL IRA AND ROTH IRA CONTRACTS
ONLY. The beneficiary continuation option must be elected by September 30th of
the year following calendar year of your death and before any other
inconsistent election is made. Beneficiaries who do not make a timely election
will not be eligible for this 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 applicable death
benefit if such death benefit is greater than such account value plus any
amount applicable under the Protection Plus feature, adjusted for any
subsequent withdrawals. Where an IRA contract is owned in a custodial
individual retirement account, the custodian may reinvest the death benefit in
an individual retirement annuity contract, using the account beneficiary as the
annuitant. Please speak with your financial professional for further
information.
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. For sole
spousal beneficiaries, payments may begin by December 31st of the calendar year
in which you would have reached age 70-1/2, if such time is later. For
traditional IRA contracts only, if you die before your Required Beginning Date
for Required Minimum Distributions, as discussed in the Statement of Additional
Information, the beneficiary may choose the "5-year rule" option instead of
annual payments over life expectancy. The 5-year rule is always available to
beneficiaries under Roth IRA contracts. If the beneficiary chooses this option,
the beneficiary may take withdrawals as desired, but the entire account value
must be fully withdrawn by December 31st of the calendar year which contains
the fifth anniversary of your death.
Under the beneficiary continuation option for IRA and Roth IRA contracts:
o The contract continues in your name for the benefit of your beneficiary.
o This feature is only available if the beneficiary is an individual. Certain
trusts with only individual beneficiaries will be treated as individuals
for this purpose.
o If there is more than one beneficiary, each beneficiary's share will be
separately accounted for. It will be distributed over the beneficiary's
own life expectancy, if payments over life expectancy are chosen.
o The minimum amount that is required in order to elect the beneficiary
continuation option is $5,000 for each beneficiary.
o The beneficiary may make transfers among the investment options but no
additional contributions will be permitted.
o If you had elected the guaranteed minimum income benefit or an optional
enhanced death benefit under the contract, they will no longer be in
effect and charges for such benefits will stop. Also, any minimum death
benefit feature 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, if any, will apply.
o 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 required 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.
BENEFICIARY CONTINUATION OPTION FOR NQ CONTRACTS ONLY. This feature, also known
as Inherited annuity, may only be elected when the NQ contract owner dies
before the annuity commencement date, whether or not the owner and the
annuitant are the same person. If the owner and annuitant are different and the
owner dies before the annuitant, for purposes of this discussion, "beneficiary"
refers to the successor
46 Payment of death benefit
owner. For a discussion of successor owner, see "When an NQ contract owner dies
before the annuitant" earlier in this section. This feature must be elected
within 9 months following the date of your death and before any inconsistent
election is made. Beneficiaries who do not make a timely election will not be
eligible for this option.
Generally, payments will be made once a year to the beneficiary over the
beneficiary's life expectancy, determined on a term certain basis and in the
year payments start. These payments must begin no later than one year after the
date of your death and are referred to as "scheduled payments." The beneficiary
may choose the "5-year rule" instead of scheduled payments over life
expectancy. If the beneficiary chooses the 5-year rule, there will be no
scheduled payments. Under the 5-year rule, the beneficiary may take withdrawals
as desired, but the entire account value must be fully withdrawn by the fifth
anniversary of your death.
Under the beneficiary continuation option for NQ contracts (regardless of
whether the owner and the annuitant are the same person):
o This feature is only available if the beneficiary is an individual. It is not
available for any entity such as a trust, even if all of the beneficiaries
of the trust are individuals.
o The contract continues in your name for the benefit of your beneficiary.
o If there is more than one beneficiary, each beneficiary's share will be
separately accounted for. It will be distributed over the respective
beneficiary's own life expectancy, if scheduled payments are chosen.
o The minimum amount that is required in order to elect the beneficiary
continuation option is $5,000 for each beneficiary.
o The beneficiary may make transfers among the investment options but no
additional contributions will be permitted.
o If you had elected the guaranteed minimum income benefit or an optional
enhanced death benefit under the contract, they will no longer be in
effect and charges for such benefits will stop. Also, any minimum death
benefit feature will no longer be in effect.
o If the beneficiary chooses the "5-year rule," withdrawals may be made at any
time. If the beneficiary instead chooses scheduled payments, the
beneficiary must also choose between two potential withdrawal options at
the time of election. If the beneficiary chooses "Withdrawal Option 1",
the beneficiary cannot later withdraw funds in addition to the scheduled
payments the beneficiary is receiving: "Withdrawal Option 1" permits total
surrender only. "Withdrawal Option 2" permits the beneficiary to take
withdrawals, in addition to scheduled payments, at any time. However, the
scheduled payments under "Withdrawal Option 1" are afforded favorable tax
treatment as "annuity payments." See "Taxation of nonqualifed annuities"
in "Tax Information" later in this Prospectus.
o Any partial withdrawals must be at least $300.
o Your beneficiary will have the right to name a beneficiary to receive any
remaining interest in the contract on the beneficiary's death.
o Upon the death of your beneficiary, the beneficiary he or she has named has
the option to either continue taking scheduled payments based on the
remaining life expectancy of the deceased beneficiary (if scheduled
payments were chosen) or to receive any remaining interest in the contract
in a lump sum. We will pay any remaining interest in the contract in a
lump sum if your beneficiary elects the 5-year rule. 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.
If you are both the owner and annuitant:
o 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 annuity account value to
equal the applicable death benefit if such death benefit is greater than
such account value, plus any amount applicable under the Protection Plus
feature, adjusted for any subsequent withdrawals.
o No withdrawal charges, if any, will apply to any withdrawals by the
beneficiary.
If the owner and annuitant are not the same person:
o If the beneficiary continuation option is elected, the beneficiary
automatically becomes the new annuitant of the contract, replacing the
existing annuitant.
o The annuity account value will not be reset to the death benefit amount.
o The contract's withdrawal charge schedule will continue to be applied to any
withdrawal or surrender other than scheduled payments; the contract's free
corridor amount will continue to apply to withdrawals but does not apply
to surrenders.
o We do not impose a withdrawal charge on scheduled payments except if, when
added to any withdrawals previously taken in the same contract year,
including for this purpose a contract surrender, the total amount of
withdrawals and scheduled payments exceed the free corridor amount. See
the "Withdrawal charges" in "Charges and expenses" earlier in this
Prospectus.
If a contract is jointly owned:
o The surviving owner supersedes any other named beneficiary and may elect the
beneficiary continuation option.
o If the deceased joint owner was also the annuitant, see "If you are both the
owner and annuitant" earlier in this section.
o If the deceased joint owner was not the annuitant, see "If the owner and
annuitant are not the same person" earlier in this section.
Payment of death benefit 47
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 Equitable Accumulator(R) Elite(SM) contracts owned by
United States individual taxpayers. The tax rules can differ, depending on the
type of contract, whether NQ, traditional IRA, Roth Conversion IRA, QP or TSA.
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
without notice. 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 or values under the contract, or payments under the contract,
for example, amounts due to beneficiaries, may be subject to federal or state
gift, estate, or inheritance 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 adviser 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") and Code Section 403(b)
Arrangements ("TSAs"), respectively: an IRA or 403(b) annuity contract such as
this one, or an IRA or 403(b)(7) custodial or other qualified account. Annuity
contracts can also be purchased in connection with retirement 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. More information on IRAs and TSAs is provided
in the SAI. 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 Accumulator(R) Elite(SM)'s Living Benefit guaranteed minimum
income benefit, Dollar Cost Averaging, choice of death benefits, selection of
investment funds, guaranteed interest option, fixed maturity options and its
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
arrangements. You should be aware that cost may vary depending on the features
and benefits made available and the charges and expenses of the investment
options or funds that you elect. Although certain provisions of the Temporary
Regulations on required minimum distributions concerning the actuarial value of
additional contract benefits, which could have increased the amount required to
be distributed from annuity contracts funding qualified plans, TSAs and IRAs
have currently been suspended, these or similar provisions may apply in future
years. You may want to discuss with your tax adviser the potential implication
of these Regulations before you purchase this annuity contract or purchase
additional features under this annuity contract. See also Appendix II at the
end of this Prospectus for a discussion of QP contracts.
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 the 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).
48 Tax information
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 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.
PROTECTION PLUS FEATURE
In order to enhance the amount of the death benefit to be paid at the
Annuitant's death, you may purchase a Protection Plus rider for your NQ
contract. Although we regard this benefit as an investment protection feature
which should have no adverse tax effect, it is possible that the IRS could take
a contrary position or assert that the Protection Plus rider is not part of the
contract. In such a case, the charges for the Protection Plus rider could be
treated for federal income tax purposes as a partial withdrawal from the
contract. If this were so, such a deemed withdrawal could be taxable, and for
contract owners under age 59-1/2, also subject to a tax penalty. Were the IRS to
take this position, Equitable would take all reasonable steps to attempt to
avoid this result, which could include amending the contract (with appropriate
notice to you).
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
Equitable Accumulator(R) Elite(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 the contract, of the
source contract carries over to the Equitable Accumulator(R) Elite(SM) NQ
contract.
An owner may 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 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.
Beneficiary continuation option
We have received a private letter ruling from the IRS regarding certain tax
consequences of scheduled payments under the beneficiary continuation option
for NQ contracts. See the discussion "Beneficiary continuation option for NQ
Contracts only" in "Payment of death benefit" earlier in this Prospectus. Among
other things, the IRS rules that:
o scheduled payments under the beneficiary continuation option for NQ contracts
satisfy the death of owner rules of Section 72(s)(2) of the Code,
regardless of whether the beneficiary elects Withdrawal Option 1 or
Withdrawal Option 2;
o scheduled payments, any additional withdrawals under Withdrawal Option 2, or
contract surrenders under Withdrawal Option 1 will only be taxable to the
beneficiary when amounts are actually paid, regardless of the Withdrawal
Option selected by the beneficiary;
o a beneficiary who irrevocably elects scheduled payments with Withdrawal
Option 1 will receive "excludable amount" tax treatment on scheduled
payments. See "Annuity payments" earlier in this section. If the
beneficiary elects to surrender the contract before all scheduled payments
are paid, the amount received upon surrender is a non-annuity payment
taxable to the extend it exceeds any remaining investment in the contract.
The ruling does not specifically address the taxation of any payments received
by a beneficiary electing Withdrawal Option 2 (whether scheduled payments or
any withdrawal that might be taken). There is no assurance that we will receive
any further rulings addressing the tax consequences of payments under
Withdrawal Option 2. Before
Tax information 49
electing the beneficiary continuation option feature, the individuals you
designate as beneficiary or successor owner should discuss with their tax
advisers the consequences of such elections.
The tax treatment of a withdrawal after the death of the owner taken as a
single sum or taken as withdrawals under the 5-year rule is generally the same
as the tax treatment of a withdrawal from or surrender of 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, in accordance with IRS formulas.
INVESTOR CONTROL ISSUES
Under certain circumstances, the IRS has stated that you could be treated as
the owner (for tax purposes) of the assets of Separate Accounts 45 and 49. If
you were treated as the owner, you would be taxable on income and gains
attributable to the shares of the underlying portfolios.
The circumstances that would lead to this tax treatment would be that, in the
opinion of the IRS, you could control the underlying investment of Separate
Accounts 45 and 49. Recently, the IRS has said that the owners of variable
annuities will not be treated as owning the separate account assets provided
the underlying portfolios are restricted to variable life and annuity assets.
The variable annuity owners must have the right only to choose among the
portfolios, and must have no right to direct the particular investment
decisions within the portfolios.
Although we believe that, under current IRS guidance, you would not be treated
as the owner of the assets of Separate Accounts 45 and 49, there are some
issues that remain unclear. For example, the IRS has not issued any guidance as
to whether having a larger number of portfolios available, or an unlimited
right to transfer among them, could cause you to be treated as the owner. We do
not know whether the IRS will ever provide such guidance or whether such
guidance, if unfavorable, would apply retroactively to your contract.
Furthermore, the IRS could reverse its current guidance at any time. We reserve
the right to modify your contract as necessary to prevent you from being
treated as the owner of the assets of Separate Accounts 45 and 49.
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 trustee or custodian holds
the assets for the benefit of the IRA owner. The assets funding the account
typically include mutual funds and/or individual stocks and/or 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; and
o Roth IRAs 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 (http:// www.irs.gov).
Equitable Life designs its IRA contracts to qualify as individual retirement
annuities under Section 408(b) of the Internal Revenue Code. You may purchase
the contract as a traditional IRA ("Rollover IRA") or Roth IRA ("Roth
Conversion IRA"). We also offer the Inherited IRA for payment of post-death
required minimum distributions in traditional IRA and Roth IRA. The SAI
contains the information that the IRS requires you to have before you purchase
an IRA. The disclosure generally assumes direct ownership of the individual
retirement annuity contract. For contracts owned in a custodial individual
retirement account, the disclosure will apply only if you terminate your
account or transfer ownership of the contract to yourself.
We have received an opinion letter from the IRS approving the respective forms
of the Equitable Accumulator(R) traditional and Roth IRA contracts, as amended
to reflect recent tax law changes, 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
50 Tax information
a determination of the merits of the annuity as an investment. The contracts
submitted for IRS approval do not include every feature possibly available
under the Equitable Accumulator(R) traditional and Roth IRA contracts.
The Inherited IRA beneficiary continuation contract has not been submitted to
the IRS for approval as to form for use as a traditional IRA or Roth IRA.
Equitable intends to submit both traditional and Roth IRA versions of the
contract for formal approval, respectively. However, it is not clear whether
and when such approval may be received.
PROTECTION PLUS(SM) FEATURE
The Protection Plus feature is offered for IRA contracts, subject to state and
contract availability. We have received IRS opinion letters that the contract
with a Protection Plus feature qualifies 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 contracts submitted for IRS approval do not
include every feature possibly available under the Equitable Accumulator(R)
Elite(SM) traditional and Roth IRA contracts. You should discuss with your tax
adviser whether you should consider purchasing an Accumulator(R) Elite(SM) IRA
or Accumulator(R) Elite(SM) Roth IRA with the optional Protection Plus feature.
CONTRIBUTIONS
Individuals may make three different types of contributions to an 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 IRAs of the same type
("direct transfers").
In addition, an individual may make a taxable rollover contribution from a
traditional IRA to a Roth IRA ("conversion" contributions).
Contributions to all types of IRAs are compensation-based. They are either made
from your current compensation or have a connection with past compensation (for
example, rollover contributions from an eligible retirement plan that you had
with an employer related to past compensation). Under certain circumstances,
your nonworking spouse, former spouse or surviving spouse may contribute to an
IRA. You can make regular contributions for any year to a traditional IRA
within federal tax law limits up until the calendar year you reach age 70-1/2.
Regular contributions for any year to a Roth IRA can be made at any time during
your life, subject to federal tax law limits.
The amount of contributions you may make to an IRA for any year and whether
such contributions are eligible for special tax treatment (for example,
deductibility from income or a special credit) may vary, depending on your
income, age and whether you participate in an employer-sponsored retirement
plan. Roth IRA contributions are not tax deductible. The maximum regular
contribution that can be made to all of your IRAs (whether traditional or Roth)
for the taxable year for which the contribution is made is $3,000 for 2004 and
$4,000 for 2005. The maximum regular contribution is increased to $3,500 for
2004 and $4,500 for 2005 if you are at least age 50 at any time during the
taxable year for which the contribution is made.
Rollover and transfer contributions are not subject to dollar limits. Rollover
contributions may be made to a traditional IRA from "eligible retirement plans"
which include other traditional IRAs, qualified plans, TSAs and governmental
employer 457(b) plans. For Roth IRAs, rollover contributions may be made from
other Roth IRAs and traditional IRAs. The conversion of a traditional IRA to a
Roth IRA is taxable. Direct transfer contributions may only be made directly
from one traditional IRA to another or from one Roth IRA to another.
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 adviser 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.
A more complete discussion of contributions to traditional IRAs and Roth IRAs
is contained in the SAI.
WITHDRAWALS AND DISTRIBUTIONS
You can withdraw any or all of your funds from an IRA at any time; you do not
need to wait for a special event like retirement. Earnings in IRAs are not
subject to federal income tax until amounts are paid to you or your
beneficiary. Withdrawals from an IRA, surrender of an IRA, death benefits from
an IRA and annuity payments from an IRA may be fully or partially taxable.
Withdrawals and distributions from IRAs are taxable as ordinary income (not
capital gain).
Payments from traditional IRAs and Roth IRAs are taxed differently. Payments
from traditional IRAs are generally fully taxable unless you have made
nondeductible regular contributions or rolled over after-tax contributions. In
any event, the issuer of the traditional IRA is entitled to report the
distribution as fully taxable and it is your responsibility to calculate the
taxable and tax-free portions of any traditional IRA payments on your own tax
returns.
Distributions from Roth IRAs generally receive return of contribution treatment
first under federal income tax calculation rules before any income is taxable.
Certain distributions from Roth IRAs may qualify for fully tax-free treatment.
These are distributions after you reach age 59-1/2, die, become disabled or meet
a qualified first-time homebuyer tax rule. You also have to meet a five-year
aging period.
A distribution from a traditional IRA will not be taxable if it is rolled over
to an eligible retirement plan. A distribution from a Roth IRA will not be
taxable if it is rolled over to another Roth IRA.
Taxable withdrawals or distributions from IRAs may be subject to an additional
10% penalty tax if you are under age 59-1/2, unless an exception applies.
Traditional IRAs are subject to required minimum distribution rules which
require that amounts begin to be distributed in a prescribed manner from the
IRA after the owner reaches age 70-1/2. These rules
Tax information 51
also require distributions after the owner's death. No distributions are
required to be made from Roth IRAs until after the Roth IRA owner's death, but
then the required minimum distribution rules apply.
A more complete discussion of the tax aspects of withdrawals and distributions
for traditional IRAs and Roth IRAs is contained in the SAI.
SPECIAL RULES FOR CONTRACTS FUNDING QUALIFIED PLANS
For QP contracts, your plan administrator or trustee notifies you as to tax
consequences. See Appendix II at the end of this Prospectus.
TAX-SHELTERED ANNUITY CONTRACTS (TSAS)
GENERAL
This section of the prospectus covers some of the special tax rules that apply
to annuity contracts under Section 403(b) of the Internal Revenue Code (TSAs).
Generally there are two types of funding vehicles available for 403(b)
arrangements -- an annuity contract under Section 403(b)(1) of the Code or a
custodial account which invests only in mutual funds and which is treated as an
annuity contract under Section 403(b)(7) of which the Code. Both types of
403(b) arrangements qualify for tax deferral.
PROTECTION PLUS FEATURE
The Protection Plus feature is offered for Rollover TSA contracts, subject to
state and contract availability. There is no assurance that the contract with
the Protection Plus feature meets the qualification requirements for TSAs.
There is a limit to the amount of life insurance benefits that TSAs may offer.
Although we view the optional Protection Plus benefit as an investment
protection feature which should have no adverse tax effect and not as a life
insurance benefit, it is possible that the IRS could take a contrary position
regarding tax qualification or assert that the Protection Plus rider is not a
permissible part of a TSA contract. If the IRS were to take the position that
the optional Protection Plus benefit is not part of the contract, in such a
case, the charges for the Protection Plus rider could be treated for federal
income tax purposes as a partial withdrawal from the contract. If this were so,
such a deemed withdrawal could affect the tax qualification of the TSA and
could be taxable. Were the IRS to take any adverse position, Equitable would
take all reasonable steps to attempt to avoid any adverse result, which would
include amending the contract (with appropriate notice to you). You should
discuss with your tax adviser whether you should consider purchasing an
Accumulator(R) Elite(SM) Rollover TSA contract with the optional Protection Plus
feature.
CONTRIBUTIONS TO TSAS
There are two ways you can make contributions to this Equitable Accumulator(R)
Elite(SM) Rollover TSA contract:
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.
If you make a direct transfer, you must fill out our transfer form.
ROLLOVER OR DIRECT TRANSFER CONTRIBUTIONS. You must establish your TSA with
funds that are directly transferred from another 403(b) arrangement or rolled
over from another 403(b) arrangement. You may make subsequent rollover
contributions to your Rollover TSA contract from these sources: qualified
plans, governmental employer 457(b) plans and traditional IRAs as well as other
TSAs and 403(b) arrangements. All rollover contributions must be pre-tax funds
only with appropriate documentation satisfactory to us.
You should discuss with your tax adviser 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.
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 Equitable Accumulator(R) Elite(SM) contract receiving the funds has
provisions at least as restrictive as the source contract.
Before you transfer funds to an Equitable Accumulator(R) Elite(SM) Rollover TSA
contract, you may have to obtain your employer's authorization or demonstrate
that you do not need employer authorization.
Contributions to TSAs are discussed in greater detail in the SAI.
DISTRIBUTIONS FROM 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. Your employer will tell us this when you establish the TSA through
a direct transfer.
You may also need spousal consent for certain transactions and payments.
WITHDRAWAL RESTRICTIONS. If this is a Revenue Ruling 90-24 direct transfer, we
will treat all amounts transferred to this contract and any future earnings on
the amount transferred as not eligible for withdrawal until one of the
following events happens:
o you are severed from employment with the employer which provided the funds to
purchase the TSA you are transferring to the Equitable Accumulator(R)
Elite(SM) Rollover TSA; or
o you reach age 59-1/2; or
o you die; or
o you become disabled (special federal income tax definition); or
o you take a hardship withdrawal (special federal income tax definition).
The amount of funds subject to withdrawal restrictions may depend on the source
of the funds used to establish the Accumulator(R) Elite(SM) TSA.
52 Tax information
TAX TREATMENT OF DISTRIBUTIONS. Amounts held under TSAs are generally not
subject to federal income tax until benefits are distributed. Distributions
include withdrawals from your TSA contract and annuity payments from your TSA
contract. Death benefits paid to a beneficiary are also taxable distributions.
Unless an exception applies, amounts distributed from TSAs are includable in
gross income as ordinary income. Distributions from TSAs may be subject to 20%
federal income tax withholding. See "Federal and state income tax withholding
and information reporting" below. In addition, TSA distributions may be subject
to additional tax penalties.
If you have made after-tax contributions, you will have a tax basis in your TSA
contract, which will be recovered tax-free. Since we currently do not accept
after-tax funds, we do not track your investment in the contract, if any. We
will report all distributions from this Rollover TSA as fully taxable. It is
your responsibility to determine how much of the distribution is taxable.
A penalty tax of 10% of the taxable portion of the distribution applies to
distributions from a TSA before you reach age 59-1/2 unless an exception
applies.
Distributions from TSAs are discussed in greater detail in the SAI.
LOANS FROM TSAS
Loans are generally not treated as a taxable distribution. You may take loans
from a TSA unless restricted by the employer (for example, under an employer
plan subject to ERISA). If you cannot take a loan, or cannot take a loan
without approval from the employer who provided the funds, we will have this
information in our records based on what you and the employer who provided the
TSA funds told us when you purchased your contract.
Loans from TSAs are discussed in greater detail in the SAI.
TAX-DEFERRED ROLLOVERS AND DIRECT TRANSFERS
You may roll over any "eligible rollover distribution" from a TSA into another
eligible retirement plan (a qualified plan, a governmental employer 457(b) plan
(separate accounting required), another TSA or a traditional IRA) which agrees
to accept the rollover.
A spousal beneficiary may also roll over death benefits or certain
divorce-related payments.
Direct transfers of TSA funds from one TSA to another under Revenue Ruling
90-24 are not distributions.
Rollovers from TSAs are discussed in greater detail in the SAI.
REQUIRED MINIMUM DISTRIBUTIONS
TSAs are subject to required minimum distribution rules beginning at age 70-1/2
or separation from service, if later. These rules are discussed in greater
detail in the SAI.
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 $17,280 in periodic annuity payments in
2004, 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
Tax information 53
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), 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.
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 AND QUALIFIED PLAN DISTRIBUTIONS
Unless you have the distribution go directly to the new plan, eligible rollover
distributions from qualified plans and TSAs are subject to mandatory 20%
withholding. The plan administrator is responsible for withholding from
qualified plan distributions. An eligible rollover distribution from a TSA or a
qualified plan can be rolled over to another eligible retirement plan. All
distributions from a TSA 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 from service with the employer; 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
o substantially equal periodic payments made for a specified period of 10 years
or more; or
o hardship withdrawals; 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.
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 No. 49 for taxes. We
do not now, but may in the future set up reserves for such taxes.
54 Tax information
8. More information
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ABOUT OUR SEPARATE ACCOUNT NO. 49
Each variable investment option is a subaccount of Separate Account No. 49. We
established Separate Account No. 49 in 1996 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 No. 49 and may withdraw any amounts that exceed
our reserves and other liabilities with respect to variable investment options
under our contracts. The results of the Separate Account's operations are
accounted for without regard to Equitable Life's other operations.
The Separate Account 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 the Separate Account.
Each subaccount (variable investment option) within the Separate Account
invests solely in class IB 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 the Separate Account 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 the Separate Account 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 the Separate Account
or a variable investment option directly);
(5) to deregister the Separate Account under the Investment Company Act of
1940;
(6) to restrict or eliminate any voting rights as to the Separate Account; 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
The Trusts 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.
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 the Trusts, its portfolio investment objectives,
policies, restrictions, risks, expenses, its Rule 12b-1 Plan, and other aspects
of its operations, appears in the prospectuses for each Trust, which are
attached at the end of this Prospectus, or in the 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.
FMO rates are determined daily. The rates in the table below are illustrative
only and will most likely differ from the rates applicable at time of purchase.
Current FMO rates can be obtained from your financial professional.
For example, the rates to maturity for new allocations as of February 13, 2004
and the related price per $100 of maturity value were as shown below:
- --------------------------------------------------------------------------------
Fixed maturity options
with February 13th Rate to maturity
maturity date of as of Price per $100
maturity year February 13, 2004 of maturity value
- --------------------------------------------------------------------------------
2005 3.00%* $ 97.08
2006 3.00%* $ 94.25
2007 3.00%* $ 91.51
2008 3.00%* $ 88.84
2009 3.00%* $ 86.25
2010 3.00%* $ 83.73
2011 3.00%* $ 81.30
2012 3.30% $ 77.11
2013 3.53% $ 73.16
2014 3.73% $ 69.31
- --------------------------------------------------------------------------------
* Since these rates to maturity are 3%, no amounts could have been allocated to
these options.
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 any 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.
More information 55
(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 for your FMO based on the rate
for a new FMO issued on the same date and having the same maturity
date as your FMO; if the same maturity date is not available for
new FMOs, we determine a rate that is between the rates for new
FMO maturities that immediately precede and immediately follow
your FMOs maturity date.
(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.
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 by using a widely published index. We reserve the right to add up
to 0.25% 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 expect the rates to maturity for the fixed maturity options 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.
ABOUT OTHER METHODS OF PAYMENT
WIRE TRANSMITTALS AND ELECTRONIC APPLICATIONS
We accept initial and subsequent contributions sent by wire to our processing
office by agreement with certain broker-dealers. Such transmittals must be
accompanied by information we require to allocate your contribution. Wire
orders not accompanied by complete information may be retained as described
under "How you can make your contributions" in "Contract features and benefits"
earlier in this Prospectus.
Even if we accept the wire order and essential information, a contract
generally will not be issued until we receive and accept a properly completed
application. In certain cases we may issue a contract based on information
provided through certain broker-dealers with which we
56 More information
have established electronic facilities. In any such cases, you must sign our
Acknowledgement of Receipt form.
Where we require a signed application, the above procedures do not apply and no
financial transactions will be permitted until we receive the signed
application and have issued the contract. Where we issue a contract based on
information provided through electronic facilities, we require an
Acknowledgement of Receipt form, and financial transactions are only permitted
if you request them in writing, sign the request and have it signature
guaranteed, until we receive the signed Acknowledgement of Receipt form. After
your contract has been issued, additional contributions may be transmitted by
wire.
In general, the transaction date for electronic transmissions is the date on
which we receive at our regular processing office all required information and
the funds due for your contribution. We may also establish same-day electronic
processing facilities with a broker-dealer that has undertaken to pay
contribution amounts on behalf of its customers. In such cases, the transaction
date for properly processed orders is the business day on which the
broker-dealer inputs all required information into its electronic processing
system. You can contact us to find out more about such arrangements.
After your contract has been issued, additional contributions may be
transmitted by wire.
AUTOMATIC INVESTMENT PROGRAM -- FOR NQ CONTRACTS ONLY
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 contract on a monthly or quarterly basis. AIP is not available for
Rollover IRA, Roth Conversion IRA, QP or Rollover TSA contracts.
The minimum amounts we will deduct are $100 monthly and $300 quarterly. AIP
additional contributions may be allocated to any of the variable investment
options and available fixed maturity options. 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.
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. on a business day, we will use the next business day.
o A loan request under your Rollover TSA contract will be processed on the
first business day of the month following the date on which the properly
completed loan request form is received.
o If your transaction is set to occur on the same day of the month as the
contract date and that date is the 29th, 30th or 31st of the month, then
the transaction will occur on the 1st day of the next month.
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 If we have entered into an agreement with your broker-dealer for automated
processing of contributions upon receipt of customer order, your
contribution will be considered received at the time your broker-dealer
receives your contribution and all information needed to process your
application, along with any required documents, and transmits your order
to us in accordance with our processing procedures. Such arrangements may
apply to initial contributions, subsequent contributions, or both, and may
be commenced or terminated at any time without prior notice. If required
by law, the "closing time" for such orders will be earlier than 4 p.m.,
Eastern Time.
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 the guaranteed interest option will receive the
crediting rate in effect on that business day for the specified time
period.
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
(unless a rate lock-in is applicable).
o Initial contributions allocated to the account for special dollar cost
averaging receive the interest rate in effect on that business day. At
certain times, we may offer the opportunity to lock in the interest rate
for an initial contribution to be received under Section 1035 exchanges
and trustee to trustee transfers. Your financial professional can provide
information, or you can call our processing office.
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 crediting rate
in effect on that business day for the specified time period.
More information 57
o For the interest sweep option, 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 the prospectuses 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 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 NO. 49 VOTING RIGHTS
If actions relating to the Separate Account 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 No. 49, our ability to meet our obligations under the
contracts, or the distribution of the contracts.
ABOUT OUR INDEPENDENT AUDITORS
The consolidated financial statements of Equitable Life at December 31, 2003
and 2002, and for the three years ended December 31, 2003 incorporated in this
Prospectus by reference to the 2003 Annual Report on Form 10-K are incorporated
in reliance on the report of PricewaterhouseCoopers LLP, independent auditors,
given on the authority of said firm as experts in auditing and accounting.
FINANCIAL STATEMENTS
The financial statements of Separate Account No. 49, 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 1-800-789-7771.
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 Rollover IRA, Roth Conversion IRA,
QP or Rollover TSA contract except by surrender to us. If your individual
retirement annuity contract is held in your custodial individual retirement
account, you may only assign or transfer ownership of such an IRA contract to
yourself. Loans are not available and you cannot assign Rollover IRA, Roth
Conversion IRA, QP or Rollover TSA contracts as security for a loan or other
obligation. If the employer that provided the funds does not restrict them,
loans are available under a Rollover TSA contract.
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 Rollover IRA, Roth
Conversion IRA, QP or Rollover TSA 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
The contracts are distributed by both AXA Advisors, LLC ("AXA Advisors") and
AXA Distributors, LLC ("AXA Distributors"). Both AXA
58 More information
Advisors and AXA Distributors serve as principal underwriters of Separate
Account No. 49. The offering of the contracts is intended to be continuous.
AXA Advisors (the successor to EQ Financial Consultants, Inc.), an affiliate of
Equitable Life, and AXA Distributors, an indirect wholly owned subsidiary of
Equitable Life, are registered with the SEC as broker dealers and are members
of the National Association of Securities Dealers, Inc. Their principal
business address is 1290 Avenue of the Americas, New York, NY 10104. Both
broker dealers also act as distributors for other Equitable Life annuity
products.
AXA Distributors is a successor by merger to all of the functions, rights and
obligations of Equitable Distributors, Inc. ("EDI"). Like AXA Distributors, EDI
was owned by Equitable Holdings, LLC.
The contracts are sold by financial professionals of AXA Advisors and its
affiliates and by financial professionals of AXA Distributors, as well as by
affiliated and unaffiliated broker dealers who have entered into selling
agreements with AXA Distributors.
We pay broker-dealer sales compensation that will generally not exceed 5.0% of
the total contributions made under the contracts. Broker-dealers receiving
sales compensation will generally pay a portion of it to their financial
representatives as commissions related to the sales of the contracts. AXA
Distributors may also receive compensation and reimbursement for its marketing
services under the terms of its distribution agreement with Equitable Life, as
well as payments from portfolio advisers for sales meetings and/or seminar
sponsorships.
Equitable and/or AXA Distributors and/or AXA Advisors may use their respective
past profits or other resources to pay brokers and other financial
intermediaries for certain expenses they incur in providing services intended
to promote the sales of our products and/or shares in the underlying Trusts.
These services may include sales personnel training, prospectus review,
marketing and related services as well as support services that benefit
contract owners.
Similarly, in an effort to promote the sale of our products, AXA Advisors may
provide its financial professionals and managerial personnel with a higher
percentage of sales commissions and/or more compensation for the sale of an
Equitable variable product than it would for the sale of another product. Such
practice is known as providing differential compensation. Other forms of
compensation financial professionals may receive include health and retirement
benefits, credits towards stock options awards and rewards for sales incentive
campaigns. In addition, managerial personnel may receive expense
reimbursements, marketing allowances and so called "overrides." In part for tax
reasons, AXA Advisors financial professionals and managerial personnel qualify
for health and retirement benefits based on their sales of our variable
products.
These payments and differential compensation (together, "payments") can vary in
amount based on the applicable product and/or entity or individual involved. As
with any incentive, such payments may cause the recipient to show preference in
recommending the purchase or sale of our products. However, under applicable
rules of the National Association of Securities Dealers, Inc., AXA Advisors
financial professionals may only recommend to you products that they reasonably
believe are suitable for you based on facts that you have disclosed as to your
other security holdings, financial situation and needs. In making any
recommendation, financial professionals may nonetheless face conflicts of
interest because of the differences in compensation from one product category
to another, and because of differences in compensation between products in the
same category. Although Equitable takes all of its costs into account in
establishing the level of fees and expenses in our products, payments made will
not result in any separate charge to you under your contract.
More information 59
9. Incorporation of certain documents by reference
- --------------------------------------------------------------------------------
Equitable Life's annual report on Form 10-K for the year ended December 31,
2003 is considered to be a part of this Prospectus because they are
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).
60 Incorporation of certain documents by reference
Appendix I: Condensed financial information
- --------------------------------------------------------------------------------
The unit values and number of units outstanding shown below are for contracts
offered under Separate Account 49 with the same daily asset charges of 1.60%.
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, 2003
- ------------------------------------------------------------------------------------------------------------------------------------
For the years ending December 31,
- ------------------------------------------------------------------------------------------------------------------------------------
2003 2002
- ------------------------------------------------------------------------------------------------------------------------------------
AXA Moderate Allocation
- ------------------------------------------------------------------------------------------------------------------------------------
Unit value $ 39.41 $ 33.62
- ------------------------------------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) 2,733 598
- ------------------------------------------------------------------------------------------------------------------------------------
AXA Premier VIP Aggressive Equity
- ------------------------------------------------------------------------------------------------------------------------------------
Unit value $ 46.56 $ 34.41
- ------------------------------------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) 429 338
- ------------------------------------------------------------------------------------------------------------------------------------
AXA Premier VIP Core Bond
- ------------------------------------------------------------------------------------------------------------------------------------
Unit value $ 10.87 $ 10.64
- ------------------------------------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) 8,217 3,282
- ------------------------------------------------------------------------------------------------------------------------------------
AXA Premier VIP Health Care
- ------------------------------------------------------------------------------------------------------------------------------------
Unit value $ 9.93 $ 7.88
- ------------------------------------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) 1,758 398
- ------------------------------------------------------------------------------------------------------------------------------------
AXA Premier VIP High Yield
- ------------------------------------------------------------------------------------------------------------------------------------
Unit value $ 26.32 $ 21.83
- ------------------------------------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) 5,467 2,248
- ------------------------------------------------------------------------------------------------------------------------------------
AXA Premier VIP International Equity
- ------------------------------------------------------------------------------------------------------------------------------------
Unit value $ 10.29 $ 7.79
- ------------------------------------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) 1,684 553
- ------------------------------------------------------------------------------------------------------------------------------------
AXA Premier VIP Large Cap Core Equity
- ------------------------------------------------------------------------------------------------------------------------------------
Unit value $ 9.61 $ 7.62
- ------------------------------------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) 1,850 635
- ------------------------------------------------------------------------------------------------------------------------------------
AXA Premier VIP Large Cap Growth
- ------------------------------------------------------------------------------------------------------------------------------------
Unit value $ 8.70 $ 6.77
- ------------------------------------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) 4,258 1,299
- ------------------------------------------------------------------------------------------------------------------------------------
AXA Premier VIP Large Cap Value
- ------------------------------------------------------------------------------------------------------------------------------------
Unit value $ 10.17 $ 7.89
- ------------------------------------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) 3,848 1,272
- ------------------------------------------------------------------------------------------------------------------------------------
AXA Premier VIP Small/Mid Cap Growth
- ------------------------------------------------------------------------------------------------------------------------------------
Unit value $ 8.53 $ 6.18
- ------------------------------------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) 5,628 1,488
- ------------------------------------------------------------------------------------------------------------------------------------
AXA Premier VIP Small/Mid Cap Value
- ------------------------------------------------------------------------------------------------------------------------------------
Unit value $ 10.17 $ 7.35
- ------------------------------------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) 3,927 1,262
- ------------------------------------------------------------------------------------------------------------------------------------
AXA Premier VIP Technology
- ------------------------------------------------------------------------------------------------------------------------------------
Unit value $ 8.76 $ 5.65
- ------------------------------------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) 1,117 205
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/Alliance Common Stock
- ------------------------------------------------------------------------------------------------------------------------------------
Unit value $196.75 $ 133.70
- ------------------------------------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) 689 581
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
For the years ending December 31,
- ------------------------------------------------------------------------------------------------------------------------------------
2001 2000 1999
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
AXA Moderate Allocation
- ------------------------------------------------------------------------------------------------------------------------------------
Unit value $ 39.15 -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) 97 -- --
- ------------------------------------------------------------------------------------------------------------------------------------
AXA Premier VIP Aggressive Equity
- ------------------------------------------------------------------------------------------------------------------------------------
Unit value $ 49.16 $ 66.77 $ 78.30
- ------------------------------------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) 402 420 141
- ------------------------------------------------------------------------------------------------------------------------------------
AXA Premier VIP Core Bond
- ------------------------------------------------------------------------------------------------------------------------------------
Unit value -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
AXA Premier VIP Health Care
- ------------------------------------------------------------------------------------------------------------------------------------
Unit value -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
AXA Premier VIP High Yield
- ------------------------------------------------------------------------------------------------------------------------------------
Unit value $ 22.86 $ 23.07 $ 25.73
- ------------------------------------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) 1,835 1,211 574
- ------------------------------------------------------------------------------------------------------------------------------------
AXA Premier VIP International Equity
- ------------------------------------------------------------------------------------------------------------------------------------
Unit value -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
AXA Premier VIP Large Cap Core Equity
- ------------------------------------------------------------------------------------------------------------------------------------
Unit value -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
AXA Premier VIP Large Cap Growth
- ------------------------------------------------------------------------------------------------------------------------------------
Unit value -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
AXA Premier VIP Large Cap Value
- ------------------------------------------------------------------------------------------------------------------------------------
Unit value -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
AXA Premier VIP Small/Mid Cap Growth
- ------------------------------------------------------------------------------------------------------------------------------------
Unit value -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
AXA Premier VIP Small/Mid Cap Value
- ------------------------------------------------------------------------------------------------------------------------------------
Unit value -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
AXA Premier VIP Technology
- ------------------------------------------------------------------------------------------------------------------------------------
Unit value -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/Alliance Common Stock
- ------------------------------------------------------------------------------------------------------------------------------------
Unit value $ 203.81 $ 232.08 $ 275.01
- ------------------------------------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) 661 618 255
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
For the years ending December 31,
- ------------------------------------------------------------------------------------------------------------------------------------
1998 1997
- ------------------------------------------------------------------------------------------------------------------------------------
AXA Moderate Allocation
- ------------------------------------------------------------------------------------------------------------------------------------
Unit value -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) -- --
- ------------------------------------------------------------------------------------------------------------------------------------
AXA Premier VIP Aggressive Equity
- ------------------------------------------------------------------------------------------------------------------------------------
Unit value $ 67.13 $ 68.19
- ------------------------------------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) 16 --
- ------------------------------------------------------------------------------------------------------------------------------------
AXA Premier VIP Core Bond
- ------------------------------------------------------------------------------------------------------------------------------------
Unit value -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) -- --
- ------------------------------------------------------------------------------------------------------------------------------------
AXA Premier VIP Health Care
- ------------------------------------------------------------------------------------------------------------------------------------
Unit value -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) -- --
- ------------------------------------------------------------------------------------------------------------------------------------
AXA Premier VIP High Yield
- ------------------------------------------------------------------------------------------------------------------------------------
Unit value $ 27.12 $ 29.13
- ------------------------------------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) 170 2
- ------------------------------------------------------------------------------------------------------------------------------------
AXA Premier VIP International Equity
- ------------------------------------------------------------------------------------------------------------------------------------
Unit value -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) -- --
- ------------------------------------------------------------------------------------------------------------------------------------
AXA Premier VIP Large Cap Core Equity
- ------------------------------------------------------------------------------------------------------------------------------------
Unit value -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) -- --
- ------------------------------------------------------------------------------------------------------------------------------------
AXA Premier VIP Large Cap Growth
- ------------------------------------------------------------------------------------------------------------------------------------
Unit value -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) -- --
- ------------------------------------------------------------------------------------------------------------------------------------
AXA Premier VIP Large Cap Value
- ------------------------------------------------------------------------------------------------------------------------------------
Unit value -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) -- --
- ------------------------------------------------------------------------------------------------------------------------------------
AXA Premier VIP Small/Mid Cap Growth
- ------------------------------------------------------------------------------------------------------------------------------------
Unit value -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) -- --
- ------------------------------------------------------------------------------------------------------------------------------------
AXA Premier VIP Small/Mid Cap Value
- ------------------------------------------------------------------------------------------------------------------------------------
Unit value -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) -- --
- ------------------------------------------------------------------------------------------------------------------------------------
AXA Premier VIP Technology
- ------------------------------------------------------------------------------------------------------------------------------------
Unit value -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) -- --
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/Alliance Common Stock
- ------------------------------------------------------------------------------------------------------------------------------------
Unit value $ 223.79 $ 176.22
- ------------------------------------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) 35 1
- ------------------------------------------------------------------------------------------------------------------------------------
Appendix I: Condensed financial information A-1
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, 2003 (CONTINUED)
- ------------------------------------------------------------------------------------------------------------------------------------
For the years ending December 31,
- ------------------------------------------------------------------------------------------------------------------------------------
2003 2002
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/Alliance Growth and Income
- ------------------------------------------------------------------------------------------------------------------------------------
Unit value $ 24.85 $ 19.37
- ------------------------------------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) 3,013 1,002
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/Alliance Intermediate Government Securities
- ------------------------------------------------------------------------------------------------------------------------------------
Unit value $ 17.95 $ 17.86
- ------------------------------------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) 3,448 2,501
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/Alliance International
- ------------------------------------------------------------------------------------------------------------------------------------
Unit value $ 11.15 $ 8.38
- ------------------------------------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) 4,026 604
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/Alliance Premier Growth
- ------------------------------------------------------------------------------------------------------------------------------------
Unit value $ 5.81 $ 4.79
- ------------------------------------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) 17,115 16,550
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/Alliance Quality Bond
- ------------------------------------------------------------------------------------------------------------------------------------
Unit value $ 15.13 $ 14.85
- ------------------------------------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) 3,122 1,064
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/Alliance Small Cap Growth
- ------------------------------------------------------------------------------------------------------------------------------------
Unit value $ 13.43 $ 9.69
- ------------------------------------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) 4,534 3,377
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/Bernstein Diversified Value
- ------------------------------------------------------------------------------------------------------------------------------------
Unit value $ 12.68 $ 10.01
- ------------------------------------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) 15,959 8,615
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/Calvert Socially Responsible
- ------------------------------------------------------------------------------------------------------------------------------------
Unit value $ 7.86 $ 6.24
- ------------------------------------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) 478 128
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/Capital Guardian International
- ------------------------------------------------------------------------------------------------------------------------------------
Unit value $ 9.42 $ 7.22
- ------------------------------------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) 10,611 5,973
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/Capital Guardian Research
- ------------------------------------------------------------------------------------------------------------------------------------
Unit value $ 10.21 $ 7.89
- ------------------------------------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) 12,682 9,408
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/Capital Guardian U. S. Equity
- ------------------------------------------------------------------------------------------------------------------------------------
Unit value $ 10.17 $ 7.57
- ------------------------------------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) 14,963 8,308
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/Emerging Markets Equity
- ------------------------------------------------------------------------------------------------------------------------------------
Unit value $ 8.58 $ 5.59
- ------------------------------------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) 4,232 2,823
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/Equity 500 Index
- ------------------------------------------------------------------------------------------------------------------------------------
Unit value $ 22.99 $ 18.28
- ------------------------------------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) 11,512 7,152
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/Evergreen Omega
- ------------------------------------------------------------------------------------------------------------------------------------
Unit value $ 7.79 $ 5.73
- ------------------------------------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) 2,016 424
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/FI Mid Cap
- ------------------------------------------------------------------------------------------------------------------------------------
Unit value $ 9.65 $ 6.83
- ------------------------------------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) 10,509 4,322
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
For the years ending December 31,
- ------------------------------------------------------------------------------------------------------------------------------------
2001 2000 1999
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/Alliance Growth and Income
- ------------------------------------------------------------------------------------------------------------------------------------
Unit value $ 25.00 $ 25.80 $ 24.13
- ------------------------------------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/Alliance Intermediate Government Securities
- ------------------------------------------------------------------------------------------------------------------------------------
Unit value $ 16.72 $ 15.75 $ 14.70
- ------------------------------------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/Alliance International
- ------------------------------------------------------------------------------------------------------------------------------------
Unit value $ 9.48 $ 12.56 $ 16.61
- ------------------------------------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/Alliance Premier Growth
- ------------------------------------------------------------------------------------------------------------------------------------
Unit value $ 7.07 $ 9.45 $ 11.77
- ------------------------------------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) 18,765 17,412 5,630
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/Alliance Quality Bond
- ------------------------------------------------------------------------------------------------------------------------------------
Unit value -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/Alliance Small Cap Growth
- ------------------------------------------------------------------------------------------------------------------------------------
Unit value $ 14.11 $ 16.53 $ 14.78
- ------------------------------------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) 3,423 3,189 818
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/Bernstein Diversified Value
- ------------------------------------------------------------------------------------------------------------------------------------
Unit value $ 11.78 $ 11.61 $ 12.04
- ------------------------------------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) 6,000 3,700 1,532
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/Calvert Socially Responsible
- ------------------------------------------------------------------------------------------------------------------------------------
Unit value $ 8.62 -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) 13 -- --
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/Capital Guardian International
- ------------------------------------------------------------------------------------------------------------------------------------
Unit value $ 8.64 $ 11.09 $ 13.93
- ------------------------------------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) 5,697 5,514 1,286
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/Capital Guardian Research
- ------------------------------------------------------------------------------------------------------------------------------------
Unit value $ 10.65 $ 11.04 $ 10.60
- ------------------------------------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) 3,151 2,953 987
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/Capital Guardian U. S. Equity
- ------------------------------------------------------------------------------------------------------------------------------------
Unit value $ 10.09 $ 10.46 $ 10.26
- ------------------------------------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) 6,886 5,538 2,436
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/Emerging Markets Equity
- ------------------------------------------------------------------------------------------------------------------------------------
Unit value $ 6.04 $ 6.47 $ 10.97
- ------------------------------------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) 3,043 2,958 962
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/Equity 500 Index
- ------------------------------------------------------------------------------------------------------------------------------------
Unit value $ 23.93 $ 27.69 --
- ------------------------------------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) 6,601 6,057 --
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/Evergreen Omega
- ------------------------------------------------------------------------------------------------------------------------------------
Unit value $ 7.66 $ 9.38 $ 10.80
- ------------------------------------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) 141 78 6
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/FI Mid Cap
- ------------------------------------------------------------------------------------------------------------------------------------
Unit value $ 8.51 $ 9.99 0
- ------------------------------------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) 2,644 617 --
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
For the years ending December 31,
- ------------------------------------------------------------------------------------------------------------------------------------
1998 1997
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/Alliance Growth and Income
- ------------------------------------------------------------------------------------------------------------------------------------
Unit value -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) -- --
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/Alliance Intermediate Government Securities
- ------------------------------------------------------------------------------------------------------------------------------------
Unit value -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) -- --
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/Alliance International
- ------------------------------------------------------------------------------------------------------------------------------------
Unit value -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) -- --
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/Alliance Premier Growth
- ------------------------------------------------------------------------------------------------------------------------------------
Unit value -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) -- --
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/Alliance Quality Bond
- ------------------------------------------------------------------------------------------------------------------------------------
Unit value -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) -- --
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/Alliance Small Cap Growth
- ------------------------------------------------------------------------------------------------------------------------------------
Unit value $ 11.77 $ 12.52
- ------------------------------------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) 211 --
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/Bernstein Diversified Value
- ------------------------------------------------------------------------------------------------------------------------------------
Unit value $ 11.81 --
- ------------------------------------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) 315 --
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/Calvert Socially Responsible
- ------------------------------------------------------------------------------------------------------------------------------------
Unit value -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) -- --
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/Capital Guardian International
- ------------------------------------------------------------------------------------------------------------------------------------
Unit value -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) -- --
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/Capital Guardian Research
- ------------------------------------------------------------------------------------------------------------------------------------
Unit value -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) -- --
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/Capital Guardian U. S. Equity
- ------------------------------------------------------------------------------------------------------------------------------------
Unit value -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) -- --
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/Emerging Markets Equity
- ------------------------------------------------------------------------------------------------------------------------------------
Unit value $ 5.70 --
- ------------------------------------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) 203 --
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/Equity 500 Index
- ------------------------------------------------------------------------------------------------------------------------------------
Unit value -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) -- --
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/Evergreen Omega
- ------------------------------------------------------------------------------------------------------------------------------------
Unit value -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) -- --
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/FI Mid Cap
- ------------------------------------------------------------------------------------------------------------------------------------
Unit value -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) -- --
- ------------------------------------------------------------------------------------------------------------------------------------
A-2 Appendix I: Condensed financial information
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, 2003 (CONTINUED)
- ------------------------------------------------------------------------------------------------------------------------------------
For the years ending December 31,
- ------------------------------------------------------------------------------------------------------------------------------------
2003 2002
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/FI Small/Mid Cap Value
- ------------------------------------------------------------------------------------------------------------------------------------
Unit value $ 12.18 $ 9.29
- ------------------------------------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) 7,229 3,714
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/J.P. Morgan Core Bond
- ------------------------------------------------------------------------------------------------------------------------------------
Unit value $ 13.28 $ 13.05
- ------------------------------------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) 16,175 13,419
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/Janus Large Cap Growth
- ------------------------------------------------------------------------------------------------------------------------------------
Unit value $ 5.40 $ 4.36
- ------------------------------------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) 6,805 4,722
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/Lazard Small Cap Value
- ------------------------------------------------------------------------------------------------------------------------------------
Unit value $ 14.17 $ 10.49
- ------------------------------------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) 7,354 5,021
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/Marsico Focus
- ------------------------------------------------------------------------------------------------------------------------------------
Unit value $ 12.72 $ 9.86
- ------------------------------------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) 10,296 2,423
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/Mercury Basic Value Equity
- ------------------------------------------------------------------------------------------------------------------------------------
Unit value $ 17.99 $ 13.94
- ------------------------------------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) 4,335 2,235
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/Mercury International Value
- ------------------------------------------------------------------------------------------------------------------------------------
Unit value $ 13.84 $ 10.98
- ------------------------------------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) 5,316 3,555
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/MFS Emerging Growth Companies
- ------------------------------------------------------------------------------------------------------------------------------------
Unit value $ 11.68 $ 9.18
- ------------------------------------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) 4,710 4,660
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/MFS Investors Trust
- ------------------------------------------------------------------------------------------------------------------------------------
Unit value $ 8.07 $ 6.72
- ------------------------------------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) 9,707 8,237
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/Money Market
- ------------------------------------------------------------------------------------------------------------------------------------
Unit value $ 26.78 $ 27.06
- ------------------------------------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) 6,370 9,288
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/Putnam Growth & Income Value
- ------------------------------------------------------------------------------------------------------------------------------------
Unit value $ 11.86 $ 9.51
- ------------------------------------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) 5,701 4,777
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/Putnam Voyager
- ------------------------------------------------------------------------------------------------------------------------------------
Unit value $ 11.27 $ 9.24
- ------------------------------------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) 2,971 2,171
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/Small Company Index
- ------------------------------------------------------------------------------------------------------------------------------------
Unit value $ 12.18 $ 8.48
- ------------------------------------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) 4,084 1,913
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/Technology
- ------------------------------------------------------------------------------------------------------------------------------------
Unit value $ 4.04 $ 2.86
- ------------------------------------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) 8,291 6,863
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
For the years ending December 31,
- ------------------------------------------------------------------------------------------------------------------------------------
2001 2000 1999
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/FI Small/Mid Cap Value
- ------------------------------------------------------------------------------------------------------------------------------------
Unit value $ 11.07 $ 10.82 $ 10.45
- ------------------------------------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) 2,090 251 --
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/J.P. Morgan Core Bond
- ------------------------------------------------------------------------------------------------------------------------------------
Unit value $ 12.10 $ 11.40 $ 10.39
- ------------------------------------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) 10,537 5,112 2,026
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/Janus Large Cap Growth
- ------------------------------------------------------------------------------------------------------------------------------------
Unit value $ 6.36 $ 8.39 --
- ------------------------------------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) 3,856 1,315 --
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/Lazard Small Cap Value
- ------------------------------------------------------------------------------------------------------------------------------------
Unit value $ 12.37 $ 10.68 $ 9.15
- ------------------------------------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) 3,274 2,109 98
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/Marsico Focus
- ------------------------------------------------------------------------------------------------------------------------------------
Unit value $ 11.33 -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) 78 -- --
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/Mercury Basic Value Equity
- ------------------------------------------------------------------------------------------------------------------------------------
Unit value $ 17.00 $ 16.37 $ 14.88
- ------------------------------------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) 1,559 1,079 173
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/Mercury International Value
- ------------------------------------------------------------------------------------------------------------------------------------
Unit value $ 13.39 $ 17.34 $ 20.10
- ------------------------------------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) 3,126 2,033 771
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/MFS Emerging Growth Companies
- ------------------------------------------------------------------------------------------------------------------------------------
Unit value $ 14.20 $ 21.88 $ 27.40
- ------------------------------------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) 5,707 5,759 1,680
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/MFS Investors Trust
- ------------------------------------------------------------------------------------------------------------------------------------
Unit value $ 8.64 $ 10.45 $ 10.70
- ------------------------------------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) 8,655 7,052 2,906
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/Money Market
- ------------------------------------------------------------------------------------------------------------------------------------
Unit value $ 27.16 $ 26.65 $ 25.55
- ------------------------------------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) 13,759 -- 9,875
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/Putnam Growth & Income Value
- ------------------------------------------------------------------------------------------------------------------------------------
Unit value $ 11.94 $ 13.02 $ 12.39
- ------------------------------------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) 4,156 1,755 978
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/Putnam Voyager
- ------------------------------------------------------------------------------------------------------------------------------------
Unit value $ 12.75 $ 17.16 $ 21.20
- ------------------------------------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) 2,221 1,658 576
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/Small Company Index
- ------------------------------------------------------------------------------------------------------------------------------------
Unit value $ 10.90 $ 10.86 $ 11.42
- ------------------------------------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) 1,535 1,382 522
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/Technology
- ------------------------------------------------------------------------------------------------------------------------------------
Unit value $ 4.91 $ 6.60 --
- ------------------------------------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) 7,562 5,505 --
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
For the years ending December 31,
- ------------------------------------------------------------------------------------------------------------------------------------
1998 1997
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/FI Small/Mid Cap Value
- ------------------------------------------------------------------------------------------------------------------------------------
Unit value -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) -- --
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/J.P. Morgan Core Bond
- ------------------------------------------------------------------------------------------------------------------------------------
Unit value $ 10.73 --
- ------------------------------------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) 379 --
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/Janus Large Cap Growth
- ------------------------------------------------------------------------------------------------------------------------------------
Unit value -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) -- --
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/Lazard Small Cap Value
- ------------------------------------------------------------------------------------------------------------------------------------
Unit value $ 9.14 --
- ------------------------------------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) 344 --
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/Marsico Focus
- ------------------------------------------------------------------------------------------------------------------------------------
Unit value -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) -- --
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/Mercury Basic Value Equity
- ------------------------------------------------------------------------------------------------------------------------------------
Unit value $ 12.71 $ 11.58
- ------------------------------------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) -- --
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/Mercury International Value
- ------------------------------------------------------------------------------------------------------------------------------------
Unit value $ 12.75 $ 10.84
- ------------------------------------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) 422 4
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/MFS Emerging Growth Companies
- ------------------------------------------------------------------------------------------------------------------------------------
Unit value $ 16.03 $ 12.11
- ------------------------------------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) 200 2
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/MFS Investors Trust
- ------------------------------------------------------------------------------------------------------------------------------------
Unit value -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) -- --
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/Money Market
- ------------------------------------------------------------------------------------------------------------------------------------
Unit value $ 24.80 $ 23.98
- ------------------------------------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) 5,805 349
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/Putnam Growth & Income Value
- ------------------------------------------------------------------------------------------------------------------------------------
Unit value $ 12.76 $ 11.50
- ------------------------------------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) 714 17
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/Putnam Voyager
- ------------------------------------------------------------------------------------------------------------------------------------
Unit value $ 16.54 $ 12.33
- ------------------------------------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) 282 --
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/Small Company Index
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Unit value $ 9.61 --
- ------------------------------------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) 211 --
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/Technology
- ------------------------------------------------------------------------------------------------------------------------------------
Unit value -- --
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Separate Account 49 number of units outstanding (000's) -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Appendix I: Condensed financial information A-3
Appendix II: Purchase considerations for QP contracts
- --------------------------------------------------------------------------------
Trustees who are considering the purchase of an Equitable Accumulator(R)
Elite(SM) QP contract should discuss with their tax advisors whether this is an
appropriate investment vehicle for the employer's plan. Trustees should
consider whether the plan provisions permit the investment of plan assets in
the QP contract, the distribution of such an annuity, the purchase of the
guaranteed minimum income benefit, and the payment of death benefits in
accordance with the requirements of the federal income tax rules. The QP
contract and this Prospectus should be reviewed in full, and the following
factors, among others, should be noted. Assuming continued plan qualification
and operation, earnings on qualified plan assets will accumulate value on a
tax-deferred basis even if the plan is not funded by the Equitable
Accumulator(R) Elite(SM) QP contract or another annuity. Therefore, you should
purchase an Equitable Accumulator(R) Elite(SM) QP contract to fund a plan for
the contract's features and benefits other than tax deferral, after considering
the relative costs and benefits of annuity contracts and other types of
arrangements and funding vehicles. This QP contract accepts transfer
contributions only and not regular, ongoing payroll contributions. For 401(k)
plans under defined contribution plans, no employee after-tax contributions are
accepted.
We will not accept defined benefit plans. For defined contribution plans, we
will only accept transfers from another defined contribution plan or a change
of investment vehicles in the plan. Only one additional transfer contribution
may be made per contract year. If overfunding of a plan occurs or amounts
attributable to an excess contribution must be withdrawn, withdrawals from the
QP contract may be required. A withdrawal charge and/or market value adjustment
may apply.
Equitable Life will not perform or provide any plan recordkeeping services with
respect to the QP contracts. The plan's administrator will be solely
responsible for performing or providing for all such services. There is no loan
feature offered under the QP contracts, so if the plan provides for loans and a
participant/employee takes a loan from the plan, other plan assets must be used
as the source of the loan and any loan repayments must be credited to other
investment vehicles and/or accounts available under the plan.
Given that required minimum distributions must generally commence from the plan
for annuitants after age 70-1/2, trustees should consider that:
o the QP contract may not be an appropriate purchase for annuitants approaching
or over age 70-1/2;
o although certain provisions of the Temporary Regulations on required minimum
distributions which would have required that the actuarial value of
additional annuity contract benefits be added to the dollar amount credited
for purposes of calculating required minimum distributions have currently
been suspended, these or similar provisions may apply in future years, and
could increase the amounts required to be distributed from the contract; and
o the guaranteed minimum income benefit under the Living Benefit may not be an
appropriate feature for annuitants who are older than age 60-1/2 when the
contract is issued.
Finally, because the method of purchasing the QP contract, including the large
initial contribution and the features of the QP contract may appeal more to
plan participants/employees who are older and tend to be highly paid, and
because certain features of the QP contract are available only to plan
participants/employees who meet certain minimum and/or maximum age
requirements, plan trustees should discuss with their advisers whether the
purchase of the QP contract would cause the plan to engage in prohibited
discrimination in contributions, benefits or otherwise.
B-1 Appendix II: Purchase considerations for QP contracts
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 was allocated
on February 13, 2004 to a fixed maturity option with a maturity date of
February 13, 2013 (nine years later) at a hypothetical rate to maturity of
7.00%, resulting in a maturity value of $183,914 on the maturity date. We
further assume that a withdrawal of $50,000 is made four years later on
February 13, 2009.
- ------------------------------------------------------------------------------------------------------------------------------------
Hypothetical assumed rate to maturity on February 13, 2009
----------------------------------------------------------------------
5.00% 9.00%
- ------------------------------------------------------------------------------------------------------------------------------------
As of February 13, 2009 (before withdrawal)
- ------------------------------------------------------------------------------------------------------------------------------------
(1) Market adjusted amount $144,082 $ 119,503
- ------------------------------------------------------------------------------------------------------------------------------------
(2) Fixed maturity amount $131,104 $ 131,104
- ------------------------------------------------------------------------------------------------------------------------------------
(3) Market value adjustment:
(1) - (2) $ 12,978 $ (11,601)
- ------------------------------------------------------------------------------------------------------------------------------------
On February 13, 2009 (after withdrawal)
- ------------------------------------------------------------------------------------------------------------------------------------
(4) Portion of market value adjustment associated with withdrawal:
(3) x [$50,000/(1)] $ 4,504 $ (4,854)
- ------------------------------------------------------------------------------------------------------------------------------------
(5) Reduction in fixed maturity amount: [$50,000 - (4)] $ 45,496 $ 54,854
- ------------------------------------------------------------------------------------------------------------------------------------
(6) Fixed maturity amount: (2) - (5) $ 85,608 $ 76,250
- ------------------------------------------------------------------------------------------------------------------------------------
(7) Maturity value $120,091 $ 106,965
- ------------------------------------------------------------------------------------------------------------------------------------
(8) Market adjusted amount of (7) $ 94,082 $ 69,503
- ------------------------------------------------------------------------------------------------------------------------------------
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 portion of 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 portion of a positive
market value adjustment is realized. The market value is computed differently
if you withdraw amounts on a date other than the anniversary of the
establishment of the fixed maturity option.
Appendix III: Market value adjustment example C-1
Appendix IV: Enhanced death benefit example
- --------------------------------------------------------------------------------
The death benefit under the contracts is equal to the account value or, if
greater, the enhanced death benefit, if elected.
The following illustrates the enhanced death benefit calculation. Assuming
$100,000 is allocated to the variable investment options (with no allocation to
the EQ/Alliance Intermediate Government Securities, EQ/Money Market, the
guaranteed interest option or the fixed maturity options), no additional
contributions, no transfers, no withdrawals and no loans under a Rollover TSA
contract, the enhanced death benefit for an annuitant age 45 would be
calculated as follows:
- ----------------------------------------------------------------------------------------
End of 6% Roll-up to age 85 Annual ratchet to age 85
contract enhanced enhanced
year Account value death benefit(1) death benefit
- ----------------------------------------------------------------------------------------
1 $105,000 $ 106,000(1) $ 105,000(3)
- ----------------------------------------------------------------------------------------
2 $115,500 $ 112,360(2) $ 115,500(3)
- ----------------------------------------------------------------------------------------
3 $129,360 $ 119,102(2) $ 129,360(3)
- ----------------------------------------------------------------------------------------
4 $103,488 $ 126,248(1) $ 129,360(4)
- ----------------------------------------------------------------------------------------
5 $113,837 $ 133,823(1) $ 129,360(4)
- ----------------------------------------------------------------------------------------
6 $127,497 $ 141,852(1) $ 129,360(4)
- ----------------------------------------------------------------------------------------
7 $127,497 $ 150,363(1) $ 129,360(4)
- ----------------------------------------------------------------------------------------
The account values for contract years 1 through 7 are based on hypothetical
rates of return of 5.00%, 10.00%, 12.00%, (20.00)%, 10.00%, 12.00% and 0.00%.
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.
6% ROLL-UP TO AGE 85
(1) At the end of contract year 1, and again at the end of contract years 4
through 7, the death benefit will be the enhanced death benefit.
(2) At the end of contract years 2 and 3, the death benefit will be the current
account value since it is higher than the current enhanced death benefit.
ANNUAL RATCHET TO AGE 85
(3) At the end of contract years 1 through 3, the enhanced death benefit is the
current account value.
(4) At the end of contract years 4 through 7, the enhanced death benefit is the
enhanced death benefit at the end of the prior year since it is equal to or
higher than the current account value.
GREATER OF THE 6% ROLL-UP TO AGE 85 OR THE ANNUAL RATCHET TO AGE 85
The enhanced death benefit under this option for each year shown would be the
greater of the amounts shown under the 6% Roll-up to age 85 or the Annual
ratchet to age 85.
D-1 Appendix IV: Enhanced death benefit example
Appendix V: Hypothetical illustrations
- --------------------------------------------------------------------------------
ILLUSTRATION OF ACCOUNT VALUES, CASH VALUES AND CERTAIN GUARANTEED MINIMUM
BENEFITS
The following tables illustrate the changes in account value, cash value and
the values of the "greater of 6% Roll up to Age 85 or the Annual Ratchet to Age
85" guaranteed minimum death benefit, the Protection Plus benefit and the
guaranteed minimum income benefit under certain hypothetical circumstances for
an Accumulator Elite contract. The table illustrates the operation of a
contract based on a male, issue age 60, who makes a single $100,000
contribution and takes no withdrawals. The amounts shown are for the beginning
of each contract year and assume that all of the account value is invested in
portfolios that achieve investment returns at constant gross annual rates of 0%
and 6% (i.e., before any investment management fees, 12b-1 fees or other
expenses are deducted from the underlying portfolio assets). After the
deduction of the arithmetic average of the investment management fees, 12b-1
fees and other expenses of all of the underlying portfolios (as described
below), the corresponding net annual rates of return would be (3.28)% and 2.72%
for the Accumulator Elite Contract, at the 0% and 6% gross annual rates,
respectively. These net annual rates of return reflect the trust and separate
account level charges, but they do not reflect the charges we deduct from your
account value annually for the guaranteed minimum death benefit, Protection
Plus benefit and the Living Benefit features, as well as the annual
administrative charge. If the net annual rates of return did reflect these
charges, the net annual rates of return would be lower; however, the values
shown in the following tables reflect all contract charges. The values shown
under "Lifetime Annual Living Benefit" reflect the lifetime income that would
be guaranteed if the Living Benefit is selected at that contract anniversary.
An "N/A" in these columns indicates that the benefit is not exercisable in that
year. A "0" under any of the Death Benefit and/or "Lifetime Annual Living
Benefit" columns indicates that the contract has terminated due to insufficient
account value and, consequently, the guaranteed benefit has no value.
With respect to fees and expenses deducted from assets of the underlying
portfolios, the amounts shown in all tables reflect (1) investment management
fees equivalent to an effective annual rate of 0.68%, and (2) an assumed
average asset charge for all other expenses of the underlying portfolios
equivalent to an effective annual rate of 0.85% and (3) 12b-1 fees equivalent
to an effective annual rate of 0.25%. These rates are the arithmetic average
for all portfolios that are available as investment options. In other words,
they are based on the hypothetical assumption that account values are allocated
equally among the variable investment options. The actual rates associated with
any contract will vary depending upon the actual allocation of contract values
among the investment options. These rates do not reflect expense limitation
arrangements in effect with respect to certain of the underlying portfolios, as
described in the footnotes to the fee table for the underlying portfolios in
"Fee Table" earlier in this Prospectus. With these arrangements, the charges
shown above would be lower. This would result in higher values than those shown
in the following tables.
Because your circumstances will no doubt differ from those in the illustrations
that follow, values under your contract will differ, in most cases
substantially. Upon request, we will furnish you with a personalized
illustration.
Appendix V: Hypothetical illustrations E-1
Variable Deferred Annuity
Accumulator Elite
$100,000 Single Contribution and No Withdrawals
Male, Issue Age 60
Benefits:
Greater of 6% Roll-Up or the Annual Ratchet to Age 85 Guaranteed Minimum
Death Benefit
Protection Plus
Guaranteed Minimum Income Benefit
Greater of 6% Roll
up
to age 85 or the
Annual
Ratchet to age 85
Guaranteed
Minimum Death
Account Value Cash Value Benefit
Contract ------------------- ------------------ -------------------
Year 0% 6% 0% 6% 0% 6%
Age --------- --------- --------- -------- --------- --------- ---------
60 1 100,000 100,000 92,000 92,000 100,000 100,000
61 2 95,010 100,989 88,010 93,989 106,000 106,000
62 3 90,129 101,924 84,129 95,924 112,360 112,360
63 4 85,349 102,799 80,349 97,799 119,102 119,102
64 5 80,660 103,608 80,660 103,608 126,248 126,248
65 6 76,055 104,344 76,055 104,344 133,823 133,823
66 7 71,525 105,001 71,525 105,001 141,852 141,852
67 8 67,061 105,571 67,061 105,571 150,363 150,363
68 9 62,655 106,045 62,655 106,045 159,385 159,385
69 10 58,298 106,415 58,298 106,415 168,948 168,948
74 15 36,854 106,359 36,854 106,359 226,090 226,090
79 20 15,238 102,021 15,238 102,021 302,560 302,560
84 25 0 91,448 0 91,448 0 404,893
89 30 0 85,976 0 85,976 0 429,187
94 35 0 82,674 0 82,674 0 429,187
95 36 0 81,968 0 81,968 0 429,187
Lifetime Annual
Guaranteed Minimum Income Benefit
Total Death Benefit ------------------------------------
with Protection Guaranteed Hypothetical
Plus Income Income
------------------- ------------------ -----------------
0% 6% 0% 6% 0% 6%
Age --------- --------- --------- -------- --------- -------
60 100,000 100,000 N/A N/A N/A N/A
61 108,400 108,400 N/A N/A N/A N/A
62 117,304 117,304 N/A N/A N/A N/A
63 126,742 126,742 N/A N/A N/A N/A
64 136,747 136,747 N/A N/A N/A N/A
65 147,352 147,352 N/A N/A N/A N/A
66 158,593 158,593 N/A N/A N/A N/A
67 170,508 170,508 N/A N/A N/A N/A
68 183,139 183,139 N/A N/A N/A N/A
69 196,527 196,527 N/A N/A N/A N/A
74 276,527 276,527 14,266 14,266 14,266 14,266
79 383,584 383,584 20,393 20,393 20,393 20,393
84 0 493,179 0 34,821 0 34,821
89 0 517,472 N/A N/A N/A N/A
94 0 517,472 N/A N/A N/A N/A
95 0 517,472 N/A N/A N/A N/A
The hypothetical investment results are illustrative only and should not be
deemed a representation of past or future investment results. Actual investment
results may be more or less than those shown and will depend on a number of
factors, including investment allocations made by the owner. The account value,
cash value and guaranteed benefits for a contract would be different from the
ones shown if the actual gross rate of investment return averaged 0% or 6% over
a period of years, but also fluctuated above or below the average for
individual contract years. We can make no representation that these
hypothetical investment results can be achieved for any one year or continued
over any period of time. In fact, for any given period of time, the investment
results could be negative.
E-2 Appendix V: Hypothetical illustrations
Statement of additional information
- --------------------------------------------------------------------------------
TABLE OF CONTENTS
Page
Tax Information 2
Unit Values 15
Equitable Life's Pending Name Change 15
Custodian and Independent Auditors 15
Distribution of the Contracts 15
Financial Statements 16
How to obtain an Equitable Accumulator(R) Elite(SM) Statement of Additional
Information for Separate Account No. 49
Send this request form to:
Equitable Accumulator(R) Elite(SM)
P.O. Box 1547
Secaucus, NJ 07096-1547
- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
Please send me an Equitable Accumulator(R) Elite(SM) SAI for Separate Account
No. 49 dated May 1, 2004.
- --------------------------------------------------------------------------------
Name:
- --------------------------------------------------------------------------------
Address:
- --------------------------------------------------------------------------------
City State Zip
X00684/Elite '02 Series
Equitable Accumulator(R) Select(SM)
A combination variable and fixed deferred annuity contract
PROSPECTUS DATED MAY 1, 2004
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. You should read the prospectuses for each Trust, which
contain important information about the portfolios.
- --------------------------------------------------------------------------------
WHAT IS THE EQUITABLE ACCUMULATOR(R) SELECT(SM)
Equitable Accumulator(R) Select(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 offers income
and death benefit protection. It also offers a number of payout options. You
invest to accumulate value on a tax-deferred basis in one or more of our
variable investment options, the guaranteed interest option or fixed maturity
options ("investment options"). There is no withdrawal charge under the
contract. Certain features and benefits described in this Prospectus may vary in
your state; all features and benefits may not be available in all contracts or
in all states.
- --------------------------------------------------------------------------------
Variable investment options
- --------------------------------------------------------------------------------
o AXA Aggressive Allocation(1) o EQ/Bernstein Diversified Value
o AXA Conservative Allocation(1) o EQ/Calvert Socially Responsible
o AXA Conservative-Plus Allocation(1) o EQ/Capital Guardian International
o AXA Moderate Allocation(1) o EQ/Capital Guardian Research
o AXA Moderate-Plus Allocation(1) o EQ/Capital Guardian U.S. Equity
o AXA Premier VIP Aggressive Equity o EQ/Emerging Markets Equity
o AXA Premier VIP Core Bond o EQ/Equity 500 Index
o AXA Premier VIP Health Care o EQ/Evergreen Omega
o AXA Premier VIP High Yield o EQ/FI Mid Cap
o AXA Premier VIP International Equity o EQ/FI Small/Mid Cap Value
o AXA Premier VIP Large Cap Core o EQ/J.P. Morgan Core Bond
Equity o EQ/Janus Large Cap Growth
o AXA Premier VIP Large Cap Growth o EQ/Lazard Small Cap Value
o AXA Premier VIP Large Cap Value o EQ/Marsico Focus
o AXA Premier VIP Small/Mid Cap o EQ/Mercury Basic Value Equity
Growth o EQ/Mercury International Value
o AXA Premier VIP Small/Mid Cap Value o EQ/MFS Emerging Growth Companies
o AXA Premier VIP Technology o EQ/MFS Investors Trust
o EQ/Alliance Common Stock o EQ/Money Market
o EQ/Alliance Growth and Income o EQ/Putnam Growth & Income Value
o EQ/Alliance Intermediate o EQ/Putnam Voyager
Government Securities o EQ/Small Company Index
o EQ/Alliance International o EQ/Technology(2)
o EQ/Alliance Premier Growth o Laudus Rosenberg VIT Value Long/
o EQ/Alliance Quality Bond Short Equity(3)
o EQ/Alliance Small Cap Growth o U.S. Real Estate -- Class II
- --------------------------------------------------------------------------------
(1) The "AXA Allocation" portfolio.
(2) Subject to shareholder approval, on or about May 14, 2004, we anticipate
that the EQ/Technology investment option (the "replaced option"), which
invests in a corresponding portfolio of EQ Advisors Trust, will be merged
into the AXA Premier VIP Technology investment option (the "surviving
option"), which invests in a corresponding portfolio of AXA Premier VIP
Trust. At that time, we will move the assets in the replaced option into
the surviving option and all allocation elections to the replaced option
will be considered allocations to the surviving option.
(3) Formerly named "AXA Rosenberg VIT Value Long/Short Equity."
You may allocate amounts to any of the variable investment options. Each
variable investment option is a subaccount of Separate Account No. 49. Each
variable investment option, in turn, invests in a corresponding securities
portfolio ("portfolio") of EQ Advisors Trust, AXA Premier VIP Trust, The
Universal Institutional Funds, Inc. or Barr Rosenberg Variable Insurance 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 ("Rollover
IRA") or Roth IRA ("Roth Conversion IRA").
o Traditional and Roth Inherited IRA beneficiary continuation contract
("Inherited IRA")
o An Internal Revenue Code Section 403(b) Tax-Sheltered Annuity ("TSA") --
("Rollover TSA").
A contribution of at least $25,000 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, 2004, is part of the registration statement.
The SAI is available free of charge. You may request one by writing to our
processing office or calling 1-800-789-7771. 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.
X00679/Select '02 Series
(R-4/15)
Contents of this Prospectus
- --------------------------------------------------------------------------------
EQUITABLE ACCUMULATOR(R) SELECT(SM)
- --------------------------------------------------------------------------------
Index of key words and phrases 4
Who is Equitable Life? 5
How to reach us 6
Equitable Accumulator(R) Select(SM) at a glance -- key features 8
- --------------------------------------------------------------------------------
FEE TABLE 10
- --------------------------------------------------------------------------------
Example 13
Condensed financial information 16
- --------------------------------------------------------------------------------
1. CONTRACT FEATURES AND BENEFITS 17
- --------------------------------------------------------------------------------
How you can purchase and contribute to your contract 17
Owner and annuitant requirements 19
How you can make your contributions 19
What are your investment options under the contract? 19
Allocating your contributions 25
Your benefit base 26
Annuity purchase factors 27
Our Living Benefit option 27
Guaranteed minimum death benefit 28
Inherited IRA beneficiary continuation contract 29
Your right to cancel within a certain number of days 30
- --------------------------------------------------------------------------------
2. DETERMINING YOUR CONTRACT'S VALUE 31
- --------------------------------------------------------------------------------
Your account value and cash value 31
Your contract's value in the variable investment options 31
Your contract's value in the guaranteed interest option 31
Your contract's value in the fixed maturity options 31
Termination of your contract 31
- --------------------------------------------------------------------------------
3. TRANSFERRING YOUR MONEY AMONG
INVESTMENT OPTIONS 32
- --------------------------------------------------------------------------------
Transferring your account value 32
Disruptive transfer activity 32
Rebalancing your account value 33
- ----------------------
"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
- --------------------------------------------------------------------------------
4. ACCESSING YOUR MONEY 34
- --------------------------------------------------------------------------------
Withdrawing your account value 34
How withdrawals are taken from your account value 35
How withdrawals affect your guaranteed minimum
income benefit and guaranteed minimum death
benefit 35
Loans under Rollover TSA contracts 35
Surrendering your contract to receive its cash value 36
When to expect payments 36
Your annuity payout options 36
- --------------------------------------------------------------------------------
5. CHARGES AND EXPENSES 39
- --------------------------------------------------------------------------------
Charges that Equitable Life deducts 39
Charges that the Trusts deduct 40
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 43
- --------------------------------------------------------------------------------
7. TAX INFORMATION 45
- --------------------------------------------------------------------------------
Overview 45
Buying a contract to fund a retirement arrangement 45
Transfers among investment options 45
Taxation of nonqualified annuities 45
Individual retirement arrangements (IRAs) 47
Contributions 48
Withdrawals and Distributions 48
Tax-Sheltered Annuity contracts (TSAs) 49
Federal and state income tax withholding and
information reporting 50
Impact of taxes to Equitable Life 51
- --------------------------------------------------------------------------------
8. MORE INFORMATION 52
- --------------------------------------------------------------------------------
About Separate Account No. 49 52
About the Trusts 52
About our fixed maturity options 52
About the general account 53
About other methods of payment 53
Dates and prices at which contract events occur 54
About your voting rights 54
About legal proceedings 55
About our independent auditors 55
Financial statements 55
Transfers of ownership, collateral assignments, loans
and borrowing 55
Distribution of the contracts 55
- --------------------------------------------------------------------------------
9. INCORPORATION OF CERTAIN DOCUMENTS BY REFERENCE 57
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
APPENDICES
- --------------------------------------------------------------------------------
I -- Condensed financial information A-1
II -- Market value adjustment example B-1
III -- Enhanced death benefit example C-1
IV -- Hypothetical illustrations D-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 in
Term Prospectus
12 month Dollar Cost Averaging 25
account value 31
administrative charge 39
annual administrative charge 39
annual ratchet death benefit 27
annuitant 19
annuity maturity date 37
annuity payout options 36
annuity purchase factors 27
automatic investment program 54
beneficiary 42
Beneficiary Continuation Option ("BCO") 43
benefit base 26
business day 54
cash value 31
charges for state premium and other applicable taxes 40
contract date 9
contract date anniversary 9
contract year 9
contributions to traditional IRAs 48
regular contributions 48
rollovers and transfers 48
disruptive transfer activity 32
distribution charge 39
EQAccess 6
ERISA 35
Fixed-dollar Option 26
fixed maturity options 24
free look 30
general account 53
general dollar cost averaging 26
guaranteed interest option 24
guaranteed minimum death benefit 28
guaranteed minimum income benefit 27
IRA cover
IRS 45
Inherited IRA cover
investment options cover
Investment Simplifier 26
Page In
Term Prospectus
Lifetime minimum distribution withdrawals 35
Living Benefit option 27
Living Benefit Charge 40
loan reserve account 36
loans under Rollover TSA 35
lump sum withdrawals 34
market adjusted amount 24
market timing 32
maturity dates 24
market value adjustment 24
maturity value 24
Mortality and expense risks charge 39
NQ cover
participant 19
portfolio cover
Principal Assurance Allocation 25
processing office 6
Protection Plus 29
Protection Plus charge 40
rate to maturity 24
Rebalancing 33
Rollover IRA cover
roll-up death benefit 26
Roth IRA 47
SAI cover
SEC cover
self-directed allocation 25
Separate Account 49 52
Standard death benefit 26
substantially equal withdrawals 34
Successor owner and annuitant 42
Systematic withdrawals 34
TOPS 6
Trusts cover
traditional IRA 47
TSA cover
unit 31
variable investment options 19
wire transmittals and electronic applications 53
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
use different words, they have the same meaning in this prospectus as in the
contract. Your financial professional can provide further explanation about your
contract or supplemental materials.
- -------------------------------------------------------------------------------------
Prospectus Contract or Supplemental Materials
- -------------------------------------------------------------------------------------
fixed maturity options Guarantee Periods (Guaranteed Fixed Interest Accounts
in supplemental materials)
variable investment options Investment Funds
account value Annuity Account Value
rate to maturity Guaranteed Rates
unit Accumulation Unit
Living Benefit Guaranteed Minimum Income Benefit
Guaranteed Interest Option Guaranteed Interest Account
- -------------------------------------------------------------------------------------
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 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
$508.31 billion in assets as of December 31, 2003. 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.
Effective on or about September 7, 2004, we expect, subject to regulatory
approval, to change the name of "The Equitable Life Assurance Society of the
United States" to "AXA Equitable Life Insurance Company." When the name change
becomes effective, all references in any current prospectus, prospectus
supplement or statement of additional information to "The Equitable Life
Assurance Society of the United States" will become references to "AXA Equitable
Life Insurance Company." Accordingly, all references to "Equitable Life" or
"Equitable" will become references to "AXA Equitable."
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 CONTRIBUTIONS SENT BY REGULAR MAIL
- --------------------------------------------------------------------------------
Equitable Accumulator(R) Select(SM)
P.O. Box 13014
Newark, NJ 07188-0014
- --------------------------------------------------------------------------------
FOR CONTRIBUTIONS SENT BY EXPRESS DELIVERY
- --------------------------------------------------------------------------------
Equitable Accumulator(R) Select(SM)
c/o Bank One, N.A.
300 Harmon Meadow Boulevard, 3rd Floor
Attn: Box 13014
Secaucus, NJ 07094
- --------------------------------------------------------------------------------
FOR ALL OTHER COMMUNICATIONS (E.G., REQUESTS FOR TRANSFERS, WITHDRAWALS, OR
REQUIRED NOTICES) SENT BY REGULAR MAIL
- --------------------------------------------------------------------------------
Equitable Accumulator(R) Select(SM)
P.O. Box 1547
Secaucus, NJ 07096-1547
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FOR ALL OTHER COMMUNICATIONS (E.G., REQUESTS FOR TRANSFERS, WITHDRAWALS, OR
REQUIRED NOTICES) SENT BY EXPRESS DELIVERY
- --------------------------------------------------------------------------------
Equitable Accumulator(R) Select(SM)
200 Plaza Drive, 4th Floor
Secaucus, NJ 07094
- --------------------------------------------------------------------------------
REPORTS WE PROVIDE:
- --------------------------------------------------------------------------------
o written confirmation of financial transactions;
o statement of your contract values at the close of each calendar year and
any calendar quarter in which there was a financial transaction; and
o annual statement of your contract values as of the close of the contract
year, including notification of eligibility to exercise the guaranteed
minimum income benefit, if applicable.
- --------------------------------------------------------------------------------
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 (not available through
EQAccess);
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 investment
options;
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 1-888-909-7770. If you are a client with AXA
Advisors you may use EQAccess by visiting our web site at
http://www.axaonline.com and clicking on EQAccess. All other clients may access
EQAccess by visiting our other web site at http://www.equitable.com. 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 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 (1-800-789-7771) to speak with one of our
customer service representatives. Our customer service representatives are
available on any business day from 8:30 a.m. until 5:30 p.m., Eastern time.
WE REQUIRE THAT THE FOLLOWING TYPES OF COMMUNICATIONS BE ON SPECIFIC FORMS WE
PROVIDE FOR THAT PURPOSE:
(1) authorization for telephone transfers by your financial professional
(available only for contracts distributed through AXA Distributors);
(2) conversion of a traditional IRA to a Roth Conversion IRA contract;
6 Who is Equitable Life?
(3) election of the automatic investment program;
(4) election of the rebalancing program;
(5) requests for loans under Rollover TSA contracts;
(6) spousal consent for loans under Rollover TSA contracts;
(7) requests for withdrawals or surrenders from Rollover TSA contracts;
(8) tax withholding elections;
(9) election of the beneficiary continuation option;
(10) IRA contribution recharacterizations;
(11) certain section 1035 exchanges;
(12) direct transfers; and
(13) exercise of Guaranteed minimum income benefit.
WE ALSO HAVE SPECIFIC FORMS THAT WE RECOMMEND YOU USE FOR THE FOLLOWING TYPES OF
REQUESTS:
(1) address changes;
(2) beneficiary changes;
(3) transfers between investment options;
(4) contract surrender and withdrawal requests;
(5) death claims;
(6) general dollar cost averaging (including the fixed dollar and interest
sweep options); and
(7) 12 month dollar cost averaging.
TO CANCEL OR CHANGE 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 (including the fixed dollar and interest
sweep options);
(3) rebalancing;
(4) 12 month dollar cost averaging;
(5) substantially equal withdrawals;
(6) systematic withdrawals; and
(7) 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
Equitable Accumulator(R) Select(SM) at a glance -- key features
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Professional investment Equitable Accumulator(R) Select(SM)'s variable investment options invest in different portfolios
management managed by professional investment advisers.
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Fixed maturity options o Fixed maturity options with maturities ranging from approximately 1 to 10 years (subject to
availability).
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. If you withdraw or transfer only a portion
of a fixed maturity amount, 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 also applies.
- ------------------------------------------------------------------------------------------------------------------------------------
Guaranteed interest o Principal and interest guarantees.
option
o Interest rates set periodically.
- ------------------------------------------------------------------------------------------------------------------------------------
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), or 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 compared 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 and in the SAI.)
- ------------------------------------------------------------------------------------------------------------------------------------
Living Benefit protection The Living Benefit provides a guaranteed minimum income benefit. The guaranteed minimum income benefit
provides income protection for you during the annuitant's life once the owner elects to annuitize the
contract.
- ------------------------------------------------------------------------------------------------------------------------------------
Contribution amounts o Initial minimum: $25,000
o Additional minimum: $500 (NQ and Rollover TSA)
$100 monthly and $300 quarterly under our automatic investment program
(NQ contracts)
$1,000 (Inherited IRA contracts)
$50 (IRA contracts)
Maximum contribution limitations may apply. In general, contributions are limited to $1.5 million.
- ------------------------------------------------------------------------------------------------------------------------------------
Access to your money o Lump sum withdrawals
o Several withdrawal options on a periodic basis
o Loans under Rollover TSA contracts
o Contract surrender
You may incur income tax and a tax penalty.
- ------------------------------------------------------------------------------------------------------------------------------------
Payout options o Fixed annuity payout options
o Variable Immediate Annuity payout options
o Income Manager(R) payout options
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8 Equitable Accumulator(R) Select(SM) at a glance -- key features
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Additional features o Guaranteed minimum death benefit options
o Dollar cost averaging
o Automatic investment program
o Account value rebalancing (quarterly, semiannually and annually)
o Free transfers
o Protection Plus, an optional death benefit available under certain contracts (subject to state availability)
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
Fees and charges o Daily charges on amounts invested in the variable investment options for mortality and expense risks,
administrative charges and distribution charges at an annual rate of 1.70%.
o The charges for the guaranteed minimum death benefits range from 0.0% to 0.60%, annually, of the applicable
benefit base. The benefit base is described under "Your benefit base" in "Contract features and benefits"
later in this Prospectus.
o Annual 0.60% of the applicable benefit base charge for the optional Living Benefit until you exercise your
guaranteed minimum income benefit, elect another annuity payout option or the contract date anniversary
after the annuitant reaches age 85, whichever occurs first.
o If your account value at the end of the contract year is less than $50,000, we deduct an annual
administrative charge equal to $30, or during the first two contract years, 2% of your account value, if
less. If your account value, on the contract date anniversary, is $50,000 or more, we will not deduct the
charge.
o Annual 0.35% Protection Plus charge for this optional death benefit.
o No sales charge deducted at the time you make contributions and no withdrawal charge.
--------------------------------------------------------------------------------------------------------------
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." For example, if your contract date is May 1, your contract date
anniversary is April 30.
--------------------------------------------------------------------------------------------------------------
o We deduct a charge designed to approximate certain taxes that may be imposed on us, such as premium taxes in
your state. This 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 the Variable Immediate Annuity payout
options.
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 0.10% to 1.50% annually,
12b-1 fees of either 0.25% or 0.35% annually and other expenses.
- ------------------------------------------------------------------------------------------------------------------------------------
Annuitant issue ages NQ: 0-85
Rollover IRA, Roth Conversion
IRA and Rollover TSA: 20-85
Inherited IRA: 0-70
- ------------------------------------------------------------------------------------------------------------------------------------
The above is not a complete description of all material provisions of the
contract. In some cases, restrictions or exceptions apply. Also, all features of
the contract 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 questions.
Other contracts
We offer a variety of fixed and variable annuity contracts. They may offer
features, including investment options, credits, fees and/or charges that are
different from those in the contracts 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.
Equitable Accumulator(R) Select(SM) at a glance -- key features 9
Fee table
- --------------------------------------------------------------------------------
The following tables describe the fees and expenses that you will pay when
buying and owning the contract. Each of the charges and expenses is more fully
described in "Charges and expenses" later in this Prospectus.
The first table describes fees and expenses that you will pay if you purchase a
Variable Immediate Annuity payout option. Charges designed to approximate
certain taxes that may be imposed on us, such as premium taxes in your state,
may also apply. Charges for certain features shown in the fee table are mutually
exclusive.
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Charges we deduct from your account value at the time you request certain transactions
- ------------------------------------------------------------------------------------------------------------------------------------
Charge if you elect a Variable Immediate Annuity payout option $350
- ------------------------------------------------------------------------------------------------------------------------------------
The next table describes the fees and expenses that you will pay periodically
during the time that you own the contract, not including the underlying trust
portfolio fees and expenses.
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Charges we deduct from your variable investment options expressed as an annual percentage of daily net assets
- ------------------------------------------------------------------------------------------------------------------------------------
Mortality and expense risks 1.10%
Administrative 0.25%
Distribution 0.35%
----
Total annual expenses 1.70%
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Charges we deduct from your account value on each contract date anniversary
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Maximum annual administrative charge
If your account value on a contract date anniversary is less than
$50,000(1) $ 30
If your account value on a contract date anniversary is $50,000
or more $ 0
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Charges we deduct from your account value each year if you elect the optional benefit
- ------------------------------------------------------------------------------------------------------------------------------------
Guaranteed minimum death benefit charge (calculated as a
percentage of the applicable benefit base. Deducted annually on each
contract date anniversary for which the benefit is in effect.)
Standard death benefit 0.00%
Annual Ratchet to age 85 0.30% of the Annual Ratchet to age 85 benefit base
6% Roll-up to age 85 0.45% of the 6% roll-up to age 85 benefit base
Greater of 6% Roll-up to age 85 or Annual Ratchet to age 85 0.60% of the greater of the 6% roll-up to age 85
benefit base or the Annual Ratchet to age 85 benefit base,
as applicable
- ------------------------------------------------------------------------------------------------------------------------------------
Living Benefit charge (calculated as a percentage of the applicable
benefit base. Deducted annually on each contract date anniversary for
which the benefit is in effect.) 0.60%
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Protection Plus benefit charge (calculated as a percentage of the
account value. Deducted annually on each contract date anniversary
for which the benefit is in effect.) 0.35%
- ------------------------------------------------------------------------------------------------------------------------------------
You also bear your proportionate share of all fees and expenses paid by a
"Portfolio" that corresponds to any variable investment option you are using.
This table shows the lowest and highest total operating expenses charged by any
of the Portfolios that you will pay periodically during the time that you own
the contract. These fees and expenses are reflected in the Portfolio's net asset
value each day. Therefore, they reduce the investment return of the Portfolio
and the related variable investment option. Actual fees and expenses are likely
to fluctuate from year to year. More detail concerning each Portfolio's fees and
expenses is contained in the Trust prospectus for the Portfolio.
10 Fee table
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Portfolio operating expenses expressed as an annual percentage of daily net assets
- ------------------------------------------------------------------------------------------------------------------------------------
Total Annual Portfolio Operating Expenses for 2003 (expenses that are deducted Lowest Highest
from Portfolio assets including management fees, 12b-1 fees, service fees, and/or ------ -------
other expenses 0.56% 10.23%
This table shows the fees and expenses for 2003 as an annual percentage of each
Portfolio's daily average net assets.
- ------------------------------------------------------------------------------------------------------------------------------------
Fee Net Total
Under- Total Annual Waivers Annual
lying Expenses and/or Expenses
Manage- Portfolio (Before Expense After
Portfolio Name ment 12b-1 Other Fees and Expense Reim- Expense
Fees(3) Fees(4) Expenses(5) Expenses(6) Limitation) bursements(7) Limitations
- ------------------------------------------------------------------------------------------------------------------------------------
AXA PREMIER VIP TRUST:
- ------------------------------------------------------------------------------------------------------------------------------------
AXA Aggressive Allocation 0.10% 0.25% 5.91% 1.08% 7.34% (5.98)% 1.36%
AXA Conservative Allocation 0.10% 0.25% 9.04% 0.84% 10.23% (9.13)% 1.10%
AXA Conservative-Plus Allocation 0.10% 0.25% 4.13% 0.88% 5.36% (4.21)% 1.15%
AXA Moderate Allocation 0.10% 0.25% 0.39% 0.86% 1.60% (0.43)% 1.17%
AXA Moderate-Plus Allocation 0.10% 0.25% 1.77% 1.13% 3.25% (1.87)% 1.38%
AXA Premier VIP Aggressive Equity 0.62% 0.25% 0.15% -- 1.02% -- 1.02%
AXA Premier VIP Core Bond 0.60% 0.25% 0.26% -- 1.11% (0.16)% 0.95%
AXA Premier VIP Health Care 1.20% 0.25% 0.48% -- 1.93% (0.08)% 1.85%
AXA Premier VIP High Yield 0.59% 0.25% 0.16% -- 1.00% -- 1.00%
AXA Premier VIP International Equity 1.05% 0.25% 0.73% -- 2.03% (0.23)% 1.80%
AXA Premier VIP Large Cap Core Equity 0.90% 0.25% 0.52% -- 1.67% (0.32)% 1.35%
AXA Premier VIP Large Cap Growth 0.90% 0.25% 0.43% -- 1.58% (0.23)% 1.35%
AXA Premier VIP Large Cap Value 0.90% 0.25% 0.43% -- 1.58% (0.23)% 1.35%
AXA Premier VIP Small/Mid Cap Growth 1.10% 0.25% 0.35% -- 1.70% (0.10)% 1.60%
AXA Premier VIP Small/Mid Cap Value 1.10% 0.25% 0.31% -- 1.66% (0.06)% 1.60%
AXA Premier VIP Technology 1.20% 0.25% 0.83% -- 2.28% (0.43)% 1.85%
- ------------------------------------------------------------------------------------------------------------------------------------
EQ ADVISORS TRUST:
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/Alliance Common Stock 0.48% 0.25% 0.06% -- 0.79% -- 0.79%
EQ/Alliance Growth and Income 0.57% 0.25% 0.06% -- 0.88% -- 0.88%
EQ/Alliance Intermediate Government Securities 0.49% 0.25% 0.08% -- 0.82% -- 0.82%
EQ/Alliance International 0.74% 0.25% 0.13% -- 1.12% (0.02)% 1.10%
EQ/Alliance Premier Growth 0.90% 0.25% 0.05% -- 1.20% (0.04)% 1.16%
EQ/Alliance Quality Bond 0.52% 0.25% 0.06% -- 0.83% -- 0.83%
EQ/Alliance Small Cap Growth 0.75% 0.25% 0.07% -- 1.07% -- 1.07%
EQ/Bernstein Diversified Value 0.64% 0.25% 0.06% -- 0.95% 0.00% 0.95%
EQ/Calvert Socially Responsible 0.65% 0.25% 0.55% -- 1.45% (0.40)% 1.05%
EQ/Capital Guardian International 0.85% 0.25% 0.21% -- 1.31% (0.11)% 1.20%
EQ/Capital Guardian Research 0.65% 0.25% 0.07% -- 0.97% (0.02)% 0.95%
EQ/Capital Guardian U.S. Equity 0.65% 0.25% 0.07% -- 0.97% (0.02)% 0.95%
EQ/Emerging Markets Equity 1.15% 0.25% 0.40% -- 1.80% 0.00% 1.80%
EQ/Equity 500 Index 0.25% 0.25% 0.06% -- 0.56% -- 0.56%
EQ/Evergreen Omega 0.65% 0.25% 0.25% -- 1.15% (0.20)% 0.95%
EQ/FI Mid Cap 0.70% 0.25% 0.08% -- 1.03% (0.03)% 1.00%
EQ/FI Small/Mid Cap Value 0.75% 0.25% 0.10% -- 1.10% 0.00% 1.10%
EQ/Janus Large Cap Growth 0.90% 0.25% 0.09% -- 1.24% (0.09)% 1.15%
EQ/J.P. Morgan Core Bond 0.44% 0.25% 0.08% -- 0.77% 0.00% 0.77%
EQ/Lazard Small Cap Value 0.75% 0.25% 0.10% -- 1.10% 0.00% 1.10%
EQ/Marsico Focus 0.90% 0.25% 0.07% -- 1.22% (0.07)% 1.15%
EQ/Mercury Basic Value Equity 0.60% 0.25% 0.07% -- 0.92% 0.00% 0.92%
EQ/Mercury International Value 0.85% 0.25% 0.16% -- 1.26% (0.01)% 1.25%
EQ/MFS Emerging Growth Companies 0.65% 0.25% 0.07% -- 0.97% -- 0.97%
EQ/MFS Investors Trust 0.60% 0.25% 0.11% -- 0.96% (0.01)% 0.95%
EQ/Money Market 0.33% 0.25% 0.06% -- 0.64% -- 0.64%
EQ/Putnam Growth & Income Value 0.60% 0.25% 0.10% -- 0.95% 0.00% 0.95%
EQ/Putnam Voyager 0.65% 0.25% 0.13% -- 1.03% (0.08)% 0.95%
EQ/Small Company Index 0.25% 0.25% 0.35% -- 0.85% 0.00% 0.85%
EQ/Technology 0.90% 0.25% 0.09% -- 1.24% (0.09)% 1.15%
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Fee table 11
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Fee Net Total
Under- Total Annual Waivers Annual
lying Expenses and/or Expenses
Manage- Portfolio (Before Expense After
Portfolio Name ment 12b-1 Other Fees and Expense Reim- Expense
Fees(3) Fees(4) Expenses(5) Expenses(6) Limitation) bursements(7) Limitations
- ------------------------------------------------------------------------------------------------------------------------------------
BARR ROSENBERG VARIABLE INSURANCE TRUST:
- ------------------------------------------------------------------------------------------------------------------------------------
Laudus Rosenberg VIT Value Long/Short Equity 1.50% 0.25% 5.80% -- 7.55% (4.57)% 2.98%
- ------------------------------------------------------------------------------------------------------------------------------------
THE UNIVERSAL INSTITUTIONAL FUNDS, INC.:
- ------------------------------------------------------------------------------------------------------------------------------------
U.S. Real Estate -- Class II 0.80% 0.35% 0.31% -- 1.46% (0.11)% 1.35%
- ------------------------------------------------------------------------------------------------------------------------------------
Notes:
(1) During the first two contract years this charge, if it applies, is equal to
the lesser of $30 or 2% of your account value. Thereafter, the charge is
$30 for each contract year.
(2) "Total Annual Portfolio Operating Expenses" are based, in part, on
estimated amounts for options added during the fiscal year 2003 and for the
underlying portfolios.
(3) The management fees for each Portfolio cannot be increased without a vote
of that Portfolio's Shareholders. See footnote (7) for any expense
limitation agreement information.
(4) 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.
(5) Other expenses shown are those incurred in 2003. The amounts shown as
"Other Expenses" will fluctuate from year to year depending on actual
expenses. See footnote (7) for any expense limitation agreement
information.
(6) The AXA Allocation variable investment options invest in corresponding
portfolios of the AXA Premier VIP Trust. Each AXA Allocation portfolio in
turn invests in shares of other portfolios of the EQ Advisors Trust and AXA
Premier VIP Trust ("the underlying portfolios"). Amounts shown reflect each
AXA Allocation portfolio's pro rata share of the fees and expenses of the
various underlying portfolios in which it invests. The fees and expenses
have been estimated based on the respective weighted investment allocations
as of 12/31/03. A "-" indicates that the listed portfolio does not invest
in underlying portfolios, i.e., it is not an allocation portfolio.
(7) The amounts shown reflect any fee waivers and/or expense reimbursements
that applied to each Portfolio. A "-" indicates that there is no expense
limitation in effect. "0.00%" indicates that the expense limitation
arrangement did not result in a fee waiver or reimbursement. Equitable
Life, the investment manager of the AXA Premier VIP Trust and the EQ
Advisors Trust, has entered into Expense Limitation Agreements with respect
to certain Portfolios, which are effective through April 30, 2005. Under
these Agreements, Equitable Life has agreed to waive or limit its fees and
assume other expenses of certain Portfolios, if necessary, in an amount
that limits such Portfolio's Total Annual Expenses (exclusive of interest,
taxes, brokerage commissions, capitalized expenditures and extraordinary
expenses) to not more than specified amounts. 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. Morgan Stanley Investment Management Inc.,
which does business in certain instances as "Van Kampen," is the manager of
the The Universal Institutional Funds, Inc.-- U.S. Real Estate
Portfolio--Class II, and has voluntarily agreed to reduce its management
fee and/or reimburse the Portfolio so that total annual operating expenses
of the Portfolio (exclusive of investment related expenses, such as foreign
country tax expense and interest expense on amounts borrowed) are not more
than specified amounts. Van Kampen reserves the right to terminate any
waiver and/or reimbursement at any time without notice. Charles Schwab
Investment Management, Inc., the manager of the Barr Rosenberg Variable
Insurance Trust--Laudus Rosenberg VIT Value Long/Short Equity Portfolio,
has voluntarily agreed to reimburse expenses in excess of specified
amounts. See the prospectuses for each applicable underlying Trust for more
information about the arrangements. In addition, a portion of the brokerage
commissions of certain Portfolios of EQ Advisors Trust and AXA Premier VIP
Trust is used to reduce the applicable Portfolio's expenses. If the above
table reflected both the expense limitation arrangements plus the portion
of the brokerage commissions used to reduce portfolio expenses, the net
expenses would be as shown in the table below:
- --------------------------------------------------
Portfolio Name
- --------------------------------------------------
AXA Aggressive Allocation 0.95%
- --------------------------------------------------
AXA Conservative Allocation 0.73%
- --------------------------------------------------
AXA Conservative-Plus Allocation 0.78%
- --------------------------------------------------
AXA Moderate Allocation 0.79%
- --------------------------------------------------
AXA Moderate-Plus Allocation 0.99%
- --------------------------------------------------
AXA Premier VIP Aggressive Equity 0.95%
- --------------------------------------------------
AXA Premier VIP Health Care 1.84%
- --------------------------------------------------
AXA Premier VIP International Equity 1.73%
- --------------------------------------------------
AXA Premier VIP Large Cap Core Equity 1.32%
- --------------------------------------------------
AXA Premier VIP Large Cap Growth 1.32%
- --------------------------------------------------
AXA Premier VIP Large Cap Value 1.28%
- --------------------------------------------------
AXA Premier VIP Small/Mid Cap Growth 1.46%
- --------------------------------------------------
AXA Premier VIP Small/Mid Cap Value 1.52%
- --------------------------------------------------
AXA Premier VIP Technology 1.70%
- --------------------------------------------------
EQ/Alliance Common Stock 0.77%
- --------------------------------------------------
EQ/Alliance Growth and Income 0.85%
- --------------------------------------------------
EQ/Alliance Premier Growth 1.15%
- --------------------------------------------------
EQ/Alliance Small Cap Growth 1.03%
- --------------------------------------------------
EQ/Calvert Socially Responsible 1.00%
- --------------------------------------------------
EQ/Capital Guardian International 1.18%
- --------------------------------------------------
EQ/Capital Guardian Research 0.93%
- --------------------------------------------------
EQ/Capital Guardian U.S. Equity 0.93%
- --------------------------------------------------
EQ/Emerging Markets Equity 1.78%
- --------------------------------------------------
EQ/Evergreen Omega 0.84%
- --------------------------------------------------
EQ/FI Mid Cap 0.88%
- --------------------------------------------------
EQ/FI Small/Mid Cap Value 1.04%
- --------------------------------------------------
EQ/Lazard Small Cap Value 1.00%
- --------------------------------------------------
12 Fee table
- --------------------------------------------------
Portfolio Name
- --------------------------------------------------
EQ/Marsico Focus 1.10%
- --------------------------------------------------
EQ/Mercury Basic Value Equity 0.91%
- --------------------------------------------------
EQ/Mercury International Value 1.18%
- --------------------------------------------------
EQ/MFS Emerging Growth Companies 0.96%
- --------------------------------------------------
EQ/MFS Investors Trust 0.94%
- --------------------------------------------------
EQ/Putnam Growth & Income Value 0.93%
- --------------------------------------------------
EQ/Putnam Voyager 0.93%
- --------------------------------------------------
EQ/Technology 1.01%
- --------------------------------------------------
EXAMPLE
This example is intended to help you compare the cost of investing in the
contract with the cost of investing in other variable annuity contracts. These
costs include contract owner transaction expenses, contract fees, separate
account annual expenses, and underlying trust fees and expenses (including the
underlying portfolio fees and expenses).
The example below shows the expenses that a hypothetical contract owner (who has
elected the Living Benefit with the enhanced death benefit that provides for the
greater of the 6% Roll-up or the Annual Ratchet to age 85 and Protection Plus)
would pay in the situations illustrated. 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 $1.10
per $10,000.
The fixed maturity options, guaranteed interest option and the 12 month dollar
cost averaging program are not covered by the examples. However, the annual
administrative charge, the charge for any optional benefits and the charge if
you elect a Variable Immediate Annuity payout option do apply to the fixed
maturity options, guaranteed interest option and the 12 month dollar cost
averaging program. 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.
The example assumes that you invest $10,000 in the contract for the time periods
indicated. The example also assumes that your investment has a 5% return each
year. This example 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 example is not an
estimate or guarantee of future investment performance. Although your actual
costs may be higher or lower, based on these assumptions, your costs would be:
Fee table 13
- ------------------------------------------------------------------------------------------------------------------------------------
If you surrender your contract at the end of the
applicable time period
- ------------------------------------------------------------------------------------------------------------------------------------
1 year 3 years 5 years 10 years
- ------------------------------------------------------------------------------------------------------------------------------------
AXA PREMIER VIP TRUST:
- ------------------------------------------------------------------------------------------------------------------------------------
AXA Aggressive Allocation $ 1,114.56 $ 3,187.20 $ 5,068.33 $ 9,053.14
AXA Conservative Allocation $ 1,417.55 $ 3,929.18 $ 6,064.99 $ 10,118.18
AXA Conservative-Plus Allocation $ 906.42 $ 2,647.90 $ 4,299.13 $ 8,069.00
AXA Moderate Allocation $ 511.95 $ 1,557.52 $ 2,633.08 $ 5,462.74
AXA Moderate-Plus Allocation $ 685.08 $ 2,047.26 $ 3,399.42 $ 6,741.57
AXA Premier VIP Aggressive Equity $ 450.67 $ 1,379.93 $ 2,348.06 $ 4,952.61
AXA Premier VIP Core Bond $ 460.12 $ 1,407.46 $ 2,392.49 $ 5,033.36
AXA Premier VIP Health Care $ 546.21 $ 1,655.84 $ 2,789.26 $ 5,734.35
AXA Premier VIP High Yield $ 448.57 $ 1,373.81 $ 2,338.16 $ 4,934.56
AXA Premier VIP International Equity $ 556.71 $ 1,685.83 $ 2,836.66 $ 5,815.68
AXA Premier VIP Large Cap Core Equity $ 518.91 $ 1,577.56 $ 2,665.01 $ 5,518.73
AXA Premier VIP Large Cap Growth $ 509.46 $ 1,550.36 $ 2,621.67 $ 5,442.68
AXA Premier VIP Large Cap Value $ 509.46 $ 1,550.36 $ 2,621.67 $ 5,442.68
AXA Premier VIP Small/Mid Cap Growth $ 522.06 $ 1,586.62 $ 2,679.42 $ 5,543.92
AXA Premier VIP Small/Mid Cap Value $ 517.86 $ 1,574.54 $ 2,660.21 $ 5,510.32
AXA Premier VIP Technology $ 582.95 $ 1,760.51 $ 2,954.25 $ 6,015.19
- ------------------------------------------------------------------------------------------------------------------------------------
EQ ADVISORS TRUST:
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/Alliance Common Stock $ 426.52 $ 1,309.33 $ 2,233.71 $ 4,742.71
EQ/Alliance Growth and Income $ 435.97 $ 1,337.00 $ 2,278.59 $ 4,825.45
EQ/Alliance Intermediate Government Securities $ 429.67 $ 1,318.56 $ 2,248.69 $ 4,770.38
EQ/Alliance International $ 461.17 $ 1,410.52 $ 2,397.42 $ 5,042.28
EQ/Alliance Premier Growth $ 469.57 $ 1,434.94 $ 2,436.75 $ 5,113.34
EQ/Alliance Quality Bond $ 430.72 $ 1,321.64 $ 2,253.68 $ 4,779.58
EQ/Alliance Small Cap Growth $ 455.92 $ 1,395.23 $ 2,372.77 $ 4,997.57
EQ/Bernstein Diversified Value $ 443.32 $ 1,358.48 $ 2,313.38 $ 4,889.27
EQ/Calvert Socially Responsible $ 495.81 $ 1,510.98 $ 2,558.76 $ 5,331.51
EQ/Capital Guardian International $ 481.12 $ 1,468.45 $ 2,490.60 $ 5,210.05
EQ/Capital Guardian Research $ 445.42 $ 1,364.61 $ 2,323.30 $ 4,907.41
EQ/Capital Guardian U.S. Equity $ 445.42 $ 1,364.61 $ 2,323.30 $ 4,907.41
EQ/Emerging Markets Equity $ 532.56 $ 1,616.75 $ 2,727.31 $ 5,627.30
EQ/Equity 500 Index $ 402.37 $ 1,238.39 $ 2,118.20 $ 4,527.63
EQ/Evergreen Omega $ 464.32 $ 1,419.68 $ 2,412.18 $ 5,069.00
EQ/FI Mid Cap $ 451.72 $ 1,382.99 $ 2,353.01 $ 4,961.62
EQ/FI Small/Mid Cap Value $ 459.07 $ 1,404.40 $ 2,387.56 $ 5,024.43
EQ/J.P. Morgan Core Bond $ 424.42 $ 1,303.18 $ 2,223.71 $ 4,724.21
EQ/Janus Large Cap Growth $ 473.77 $ 1,447.13 $ 2,456.36 $ 5,148.64
EQ/Lazard Small Cap Value $ 459.07 $ 1,404.40 $ 2,387.56 $ 5,024.43
EQ/Marsico Focus $ 471.67 $ 1,441.04 $ 2,446.56 $ 5,131.01
EQ/Mercury Basic Value Equity $ 440.17 $ 1,349.28 $ 2,298.49 $ 4,861.98
EQ/Mercury International Value $ 475.87 $ 1,453.23 $ 2,466.15 $ 5,166.23
EQ/MFS Emerging Growth Companies $ 445.42 $ 1,364.61 $ 2,323.30 $ 4,907.41
EQ/MFS Investors Trust $ 444.37 $ 1,361.55 $ 2,318.34 $ 4,898.35
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
If you annuitize at the end of the
applicable time period
- ------------------------------------------------------------------------------------------------------------------------------------
1 year 3 years 5 years 10 years
- ------------------------------------------------------------------------------------------------------------------------------------
AXA PREMIER VIP TRUST:
- ------------------------------------------------------------------------------------------------------------------------------------
AXA Aggressive Allocation $ 1,464.56 $ 3,537.20 $ 5,418.33 $ 9,403.14
AXA Conservative Allocation $ 1,767.55 $ 4,279.18 $ 6,414.99 $ 10,468.18
AXA Conservative-Plus Allocation $ 1,256.42 $ 2,997.90 $ 4,649.13 $ 8,419.00
AXA Moderate Allocation $ 861.95 $ 1,907.52 $ 2,983.08 $ 5,812.74
AXA Moderate-Plus Allocation $ 1,035.08 $ 2,397.26 $ 3,749.42 $ 7,091.57
AXA Premier VIP Aggressive Equity $ 800.67 $ 1,729.93 $ 2,698.06 $ 5,302.61
AXA Premier VIP Core Bond $ 810.12 $ 1,757.46 $ 2,742.49 $ 5,383.36
AXA Premier VIP Health Care $ 896.21 $ 2,005.84 $ 3,139.26 $ 6,084.35
AXA Premier VIP High Yield $ 798.57 $ 1,723.81 $ 2,688.16 $ 5,284.56
AXA Premier VIP International Equity $ 906.71 $ 2,035.83 $ 3,186.66 $ 6,165.68
AXA Premier VIP Large Cap Core Equity $ 868.91 $ 1,927.56 $ 3,015.01 $ 5,868.73
AXA Premier VIP Large Cap Growth $ 859.46 $ 1,900.36 $ 2,971.67 $ 5,792.68
AXA Premier VIP Large Cap Value $ 859.46 $ 1,900.36 $ 2,971.67 $ 5,792.68
AXA Premier VIP Small/Mid Cap Growth $ 872.06 $ 1,936.62 $ 3,029.42 $ 5,893.92
AXA Premier VIP Small/Mid Cap Value $ 867.86 $ 1,924.54 $ 3,010.21 $ 5,860.32
AXA Premier VIP Technology $ 932.95 $ 2,110.51 $ 3,304.25 $ 6,365.19
- ------------------------------------------------------------------------------------------------------------------------------------
EQ ADVISORS TRUST:
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/Alliance Common Stock $ 776.52 $ 1,659.33 $ 2,583.71 $ 5,092.71
EQ/Alliance Growth and Income $ 785.97 $ 1,687.00 $ 2,628.59 $ 5,175.45
EQ/Alliance Intermediate Government Securities $ 779.67 $ 1,668.56 $ 2,598.69 $ 5,120.38
EQ/Alliance International $ 811.17 $ 1,760.52 $ 2,747.42 $ 5,392.28
EQ/Alliance Premier Growth $ 819.57 $ 1,784.94 $ 2,786.75 $ 5,463.34
EQ/Alliance Quality Bond $ 780.72 $ 1,671.64 $ 2,603.68 $ 5,129.58
EQ/Alliance Small Cap Growth $ 805.92 $ 1,745.23 $ 2,722.77 $ 5,347.57
EQ/Bernstein Diversified Value $ 793.32 $ 1,708.48 $ 2,663.38 $ 5,239.27
EQ/Calvert Socially Responsible $ 845.81 $ 1,860.98 $ 2,908.76 $ 5,681.51
EQ/Capital Guardian International $ 831.12 $ 1,818.45 $ 2,840.60 $ 5,560.05
EQ/Capital Guardian Research $ 795.42 $ 1,714.61 $ 2,673.30 $ 5,257.41
EQ/Capital Guardian U.S. Equity $ 795.42 $ 1,714.61 $ 2,673.30 $ 5,257.41
EQ/Emerging Markets Equity $ 882.56 $ 1,966.75 $ 3,077.31 $ 5,977.30
EQ/Equity 500 Index $ 752.37 $ 1,588.39 $ 2,468.20 $ 4,877.63
EQ/Evergreen Omega $ 814.32 $ 1,769.68 $ 2,762.18 $ 5,419.00
EQ/FI Mid Cap $ 801.72 $ 1,732.99 $ 2,703.01 $ 5,311.62
EQ/FI Small/Mid Cap Value $ 809.07 $ 1,754.40 $ 2,737.56 $ 5,374.43
EQ/J.P. Morgan Core Bond $ 774.42 $ 1,653.18 $ 2,573.71 $ 5,074.21
EQ/Janus Large Cap Growth $ 823.77 $ 1,797.13 $ 2,806.36 $ 5,498.64
EQ/Lazard Small Cap Value $ 809.07 $ 1,754.40 $ 2,737.56 $ 5,374.43
EQ/Marsico Focus $ 821.67 $ 1,791.04 $ 2,796.56 $ 5,481.01
EQ/Mercury Basic Value Equity $ 790.17 $ 1,699.28 $ 2,648.49 $ 5,211.98
EQ/Mercury International Value $ 825.87 $ 1,803.23 $ 2,816.15 $ 5,516.23
EQ/MFS Emerging Growth Companies $ 795.42 $ 1,714.61 $ 2,673.30 $ 5,257.41
EQ/MFS Investors Trust $ 794.37 $ 1,711.55 $ 2,668.34 $ 5,248.35
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
If you do not surrender your contract at the end of the
applicable time period
- ------------------------------------------------------------------------------------------------------------------------------------
1 year 3 years 5 years 10 years
- ------------------------------------------------------------------------------------------------------------------------------------
AXA PREMIER VIP TRUST:
- ------------------------------------------------------------------------------------------------------------------------------------
AXA Aggressive Allocation $ 1,114.56 $ 3,187.20 $ 5,068.33 $ 9,053.14
AXA Conservative Allocation $ 1,417.55 $ 3,929.18 $ 6,064.99 $ 10,118.18
AXA Conservative-Plus Allocation $ 906.42 $ 2,647.90 $ 4,299.13 $ 8,069.00
AXA Moderate Allocation $ 511.95 $ 1,557.52 $ 2,633.08 $ 5,462.74
AXA Moderate-Plus Allocation $ 685.08 $ 2,047.26 $ 3,399.42 $ 6,741.57
AXA Premier VIP Aggressive Equity $ 450.67 $ 1,379.93 $ 2,348.06 $ 4,952.61
AXA Premier VIP Core Bond $ 460.12 $ 1,407.46 $ 2,392.49 $ 5,033.36
AXA Premier VIP Health Care $ 546.21 $ 1,655.84 $ 2,789.26 $ 5,734.35
AXA Premier VIP High Yield $ 448.57 $ 1,373.81 $ 2,338.16 $ 4,934.56
AXA Premier VIP International Equity $ 556.71 $ 1,685.83 $ 2,836.66 $ 5,815.68
AXA Premier VIP Large Cap Core Equity $ 518.91 $ 1,577.56 $ 2,665.01 $ 5,518.73
AXA Premier VIP Large Cap Growth $ 509.46 $ 1,550.36 $ 2,621.67 $ 5,442.68
AXA Premier VIP Large Cap Value $ 509.46 $ 1,550.36 $ 2,621.67 $ 5,442.68
AXA Premier VIP Small/Mid Cap Growth $ 522.06 $ 1,586.62 $ 2,679.42 $ 5,543.92
AXA Premier VIP Small/Mid Cap Value $ 517.86 $ 1,574.54 $ 2,660.21 $ 5,510.32
AXA Premier VIP Technology $ 582.95 $ 1,760.51 $ 2,954.25 $ 6,015.19
- ------------------------------------------------------------------------------------------------------------------------------------
EQ ADVISORS TRUST:
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/Alliance Common Stock $ 426.52 $ 1,309.33 $ 2,233.71 $ 4,742.71
EQ/Alliance Growth and Income $ 435.97 $ 1,337.00 $ 2,278.59 $ 4,825.45
EQ/Alliance Intermediate Government Securities $ 429.67 $ 1,318.56 $ 2,248.69 $ 4,770.38
EQ/Alliance International $ 461.17 $ 1,410.52 $ 2,397.42 $ 5,042.28
EQ/Alliance Premier Growth $ 469.57 $ 1,434.94 $ 2,436.75 $ 5,113.34
EQ/Alliance Quality Bond $ 430.72 $ 1,321.64 $ 2,253.68 $ 4,779.58
EQ/Alliance Small Cap Growth $ 455.92 $ 1,395.23 $ 2,372.77 $ 4,997.57
EQ/Bernstein Diversified Value $ 443.32 $ 1,358.48 $ 2,313.38 $ 4,889.27
EQ/Calvert Socially Responsible $ 495.81 $ 1,510.98 $ 2,558.76 $ 5,331.51
EQ/Capital Guardian International $ 481.12 $ 1,468.45 $ 2,490.60 $ 5,210.05
EQ/Capital Guardian Research $ 445.42 $ 1,364.61 $ 2,323.30 $ 4,907.41
EQ/Capital Guardian U.S. Equity $ 445.42 $ 1,364.61 $ 2,323.30 $ 4,907.41
EQ/Emerging Markets Equity $ 532.56 $ 1,616.75 $ 2,727.31 $ 5,627.30
EQ/Equity 500 Index $ 402.37 $ 1,238.39 $ 2,118.20 $ 4,527.63
EQ/Evergreen Omega $ 464.32 $ 1,419.68 $ 2,412.18 $ 5,069.00
EQ/FI Mid Cap $ 451.72 $ 1,382.99 $ 2,353.01 $ 4,961.62
EQ/FI Small/Mid Cap Value $ 459.07 $ 1,404.40 $ 2,387.56 $ 5,024.43
EQ/J.P. Morgan Core Bond $ 424.42 $ 1,303.18 $ 2,223.71 $ 4,724.21
EQ/Janus Large Cap Growth $ 473.77 $ 1,447.13 $ 2,456.36 $ 5,148.64
EQ/Lazard Small Cap Value $ 459.07 $ 1,404.40 $ 2,387.56 $ 5,024.43
EQ/Marsico Focus $ 471.67 $ 1,441.04 $ 2,446.56 $ 5,131.01
EQ/Mercury Basic Value Equity $ 440.17 $ 1,349.28 $ 2,298.49 $ 4,861.98
EQ/Mercury International Value $ 475.87 $ 1,453.23 $ 2,466.15 $ 5,166.23
EQ/MFS Emerging Growth Companies $ 445.42 $ 1,364.61 $ 2,323.30 $ 4,907.41
EQ/MFS Investors Trust $ 444.37 $ 1,361.55 $ 2,318.34 $ 4,898.35
- ------------------------------------------------------------------------------------------------------------------------------------
14 Fee table
- ------------------------------------------------------------------------------------------------------------------------------------
If you surrender your contract at the end of the
applicable time period
- ------------------------------------------------------------------------------------------------------------------------------------
1 year 3 years 5 years 10 years
- ------------------------------------------------------------------------------------------------------------------------------------
EQ ADVISORS TRUST:
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/Money Market $ 410.77 $ 1,263.10 $ 2,158.51 $ 4,603.03
EQ/Putnam Growth & Income Value $ 443.32 $ 1,358.48 $ 2,313.38 $ 4,889.27
EQ/Putnam Voyager $ 451.72 $ 1,382.99 $ 2,353.01 $ 4,961.62
EQ/Small Company Index $ 432.82 $ 1,327.78 $ 2,263.65 $ 4,797.96
EQ/Technology $ 473.77 $ 1,447.13 $ 2,456.36 $ 5,148.64
- ------------------------------------------------------------------------------------------------------------------------------------
BARR ROSENBERG VARIABLE INSURANCE TRUST:
- ------------------------------------------------------------------------------------------------------------------------------------
Laudus Rosenberg VIT Value Long/Short Equity $ 1,136.24 $ 3,241.98 $ 5,144.38 $ 9,142.82
- ------------------------------------------------------------------------------------------------------------------------------------
THE UNIVERSAL INSTITUTIONAL FUNDS, INC.:
- ------------------------------------------------------------------------------------------------------------------------------------
U.S. Real Estate -- Class II $ 496.86 $ 1,514.01 $ 2,563.61 $ 5,340.12
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
If you annuitize at the end of the
applicable time period
- ------------------------------------------------------------------------------------------------------------------------------------
1 year 3 years 5 years 10 years
- ------------------------------------------------------------------------------------------------------------------------------------
EQ ADVISORS TRUST:
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/Money Market $ 760.77 $ 1,613.10 $ 2,508.51 $ 4,953.03
EQ/Putnam Growth & Income Value $ 793.32 $ 1,708.48 $ 2,663.38 $ 5,239.27
EQ/Putnam Voyager $ 801.72 $ 1,732.99 $ 2,703.01 $ 5,311.62
EQ/Small Company Index $ 782.82 $ 1,677.78 $ 2,613.65 $ 5,147.96
EQ/Technology $ 823.77 $ 1,797.13 $ 2,806.36 $ 5,498.64
- ------------------------------------------------------------------------------------------------------------------------------------
BARR ROSENBERG VARIABLE INSURANCE TRUST:
- ------------------------------------------------------------------------------------------------------------------------------------
Laudus Rosenberg VIT Value Long/Short Equity $ 1,486.24 $ 3,591.98 $ 5,494.38 $ 9,492.82
- ------------------------------------------------------------------------------------------------------------------------------------
THE UNIVERSAL INSTITUTIONAL FUNDS, INC.:
- ------------------------------------------------------------------------------------------------------------------------------------
U.S. Real Estate -- Class II $ 846.86 $ 1,864.01 $ 2,913.61 $ 5,690.12
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
If you do not surrender your contract at the end of the
applicable time period
- ------------------------------------------------------------------------------------------------------------------------------------
1 year 3 years 5 years 10 years
- ------------------------------------------------------------------------------------------------------------------------------------
EQ ADVISORS TRUST:
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/Money Market $ 410.77 $ 1,263.10 $ 2,158.51 $ 4,603.03
EQ/Putnam Growth & Income Value $ 443.32 $ 1,358.48 $ 2,313.38 $ 4,889.27
EQ/Putnam Voyager $ 451.72 $ 1,382.99 $ 2,353.01 $ 4,961.62
EQ/Small Company Index $ 432.82 $ 1,327.78 $ 2,263.65 $ 4,797.96
EQ/Technology $ 473.77 $ 1,447.13 $ 2,456.36 $ 5,148.64
- ------------------------------------------------------------------------------------------------------------------------------------
BARR ROSENBERG VARIABLE INSURANCE TRUST:
- ------------------------------------------------------------------------------------------------------------------------------------
Laudus Rosenberg VIT Value Long/Short Equity $ 1,136.24 $ 3,241.98 $ 5,144.38 $ 9,142.82
- ------------------------------------------------------------------------------------------------------------------------------------
THE UNIVERSAL INSTITUTIONAL FUNDS, INC.:
- ------------------------------------------------------------------------------------------------------------------------------------
U.S. Real Estate -- Class II $ 496.86 $ 1,514.01 $ 2,563.61 $ 5,340.12
- ------------------------------------------------------------------------------------------------------------------------------------
Fee table 15
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 periods shown for each of the
variable investment options available as of December 31, 2003.
16 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 initial contribution of $25,000 for you to
purchase a contract. You may make additional contributions of at least $500 each
for NQ and Rollover TSA contracts and $50 for Rollover IRA and Roth Conversion
contracts and $1000 for Inherited IRA contracts, subject to limitations noted
below. 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.
We may refuse to accept any contribution if the sum of all contributions under
all Equitable Accumulator(R) series contracts with the same annuitant would then
total more than $1,500,000. We reserve the right to limit aggregate
contributions made after the first contract year to 150% of first-year
contributions. 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. We may accept less than the minimum
initial contribution under a contract if an aggregate amount of contracts
purchased at the same time by an individual (including spouse) meets the
minimum.
- --------------------------------------------------------------------------------
The "annuitant" is the person who is the measuring life for determining contract
benefits. The annuitant is not necessarily the contract owner.
- --------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
Available
Contract for annuitant Limitations on
type issue ages Source of contributions contributions
- ------------------------------------------------------------------------------------------------------------------------------------
NQ 0 through 85 o After-tax money. o No additional contributions after attainment
of age 86 or, if later, the first contract
o Paid to us by check or transfer of contract anniversary.
value in a tax-deferred exchange under Section
1035 of the Internal Revenue Code.
- ------------------------------------------------------------------------------------------------------------------------------------
Rollover IRA 20 through 85 o Eligible rollover distributions from TSA con- o No rollover or direct transfer contributions
tracts or other 403(b) arrangements, after attainment of age 86 or, if later, the
qualified plans, and governmental employer first contract anniversary.
457(b) plans.
o Contributions after age 70-1/2 must be net of
o Rollovers from another traditional individual required minimum distributions.
retirement arrangement.
o Although we accept regular IRA contributions
o Direct custodian-to-custodian transfers from (limited to $3,000 for 2004 and $4,000 for 2005)
another traditional individual retirement under the Rollover IRA contracts, we intend that
arrangement. this contract be used primarily for rollover and
direct transfer contributions.
o Regular IRA contributions.
o Additional "catch-up" contributions. o Additional catch-up contributions of up to $500
can be made for the calendar year 2004 or 2005
where the owner is at least age 50 but under age
70-1/2 at any time during the calendar year for
which the contribution is made.
- ------------------------------------------------------------------------------------------------------------------------------------
Contract features and benefits 17
- ------------------------------------------------------------------------------------------------------------------------------------
Available
Contract for annuitant Limitations on
type issue ages Source of contributions contributions
- ------------------------------------------------------------------------------------------------------------------------------------
Roth Conversion 20 through 85 o Rollovers from another Roth IRA. o No additional rollover or direct transfer con-
IRA tributions after attainment of age 86 or, if
o Conversion rollovers from a traditional IRA. later, the first contract anniversary.
o Direct transfers from another Roth IRA. o Conversion rollovers after age 70-1/2 must be
net of required minimum distributions for the
o Regular Roth IRA contributions. traditional IRA you are rolling over.
o Additional catch-up contributions. o You cannot roll over funds from a traditional
IRA if your adjusted gross income is $100,000
or more.
o Although we accept regular Roth IRA contri-
butions (limited to $3,000 for 2004 and $4,000
for 2005) under the Roth IRA contracts, we
intend that this contract be used primarily
for rollover and direct transfer
contributions.
o Additional catch-up contributions of up to
$500 can be made for the calendar year 2004 or
2005 where the owner is at least age 50 at any
time during the calendar year for which the
contribution is made.
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Inherited IRA 0-70 o (If contract is traditional IRA) Direct o Any additional contributions must be from
Beneficiary custodian-to-custodian transfers of your same type of IRA of same deceased owner.
Continuation interest as death beneficiary of the
Contract deceased owner's traditional individual
(traditional IRA retirement arrangement.
or Roth IRA)
o (If contract is Roth IRA) Direct custodian-to-
custodian transfers of your interest as death
beneficiary of the deceased owner's Roth IRA.
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Rollover TSA 20 through 85 o Direct transfers of pre-tax funds from o No additional rollover or direct transfer con-
another contract or arrangement under tributions after attainment of age 86 or, if
Section 403(b) of the Internal Revenue later, the first contract anniversary.
Code, complying with IRS Revenue Ruling
90-24. o Rollover or direct transfer contributions
after age 70-1/2 must be net of any required
o Eligible rollover distributions of pre-tax minimum distributions.
funds from other 403(b) plans. Subsequent
contributions may also be rollovers from o We do not accept employer-remitted
qualified plans, governmental employer contributions.
457(b) plans and traditional IRAs.
o We do not accept contributions from
defined benefit plans.
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See "Tax information" later in this Prospectus and in the SAI for a more
detailed discussion of sources of contributions and certain contribution
limitations.
For information on when contributions are credited under your contract see
"Dates and prices at which contract events occur" in "More information" later in
this Prospectus.
18 Contract features and benefits
OWNER AND ANNUITANT REQUIREMENTS
Under NQ contracts, the annuitant can be different from the owner. We do not
permit partnerships or limited liability corporations to be owners. We also
reserve the right to prohibit availability of this contract to other non-natural
owners. Only natural persons can be joint owners. In general, we will not permit
a contract to be owned by a minor unless it is pursuant to the Uniform Gift to
Minors Act or the Uniform Transfers to Minors Act in your state.
Under all IRA and Rollover TSA contracts, the owner and annuitant must be the
same person. In some cases, an IRA contract may be held in a custodial
individual retirement account for the benefit of the individual annuitant. This
option may not be available under your contract. See Inherited IRA beneficiary
continuation contract later in this section for inherited IRA owner and
annuitant requirements.
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A "participant" is an individual who is currently, or was formerly,
participating in an eligible employer's qualified plan or TSA plan.
- --------------------------------------------------------------------------------
HOW YOU CAN MAKE YOUR CONTRIBUTIONS
Except as noted below, contributions must be 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.
For your convenience, we will accept initial and additional contributions by
wire transmittal from certain broker-dealers who have agreements with us for
this purpose including circumstances under which certain contributions are
considered received by us when your order is taken by such broker-dealers.
Additional contributions may also be made under our automatic investment
program. These methods of payment are 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 payments. 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.
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Our "business day" is generally any day the New York Stock Exchange is open for
trading and generally ends at 4:00 p.m. Eastern Time. A business day does not
include a 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 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/Money Market variable investment
option. Listed below are the currently available portfolios, their investment
objectives and their advisers.
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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 the Accumulator(R)
Select(SM) 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.
Equitable Life serves as the investment manager of the Portfolios of the EQ
Advisors Trust and the AXA Premier VIP Trust. 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. The
advisers for these Portfolios, listed in the chart below, are those who make the
investment decisions for each Portfolio. The chart also indicates the investment
manager for each of the other Portfolios.
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AXA Premier VIP Trust
Portfolio Name Objective Adviser(s)
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AXA AGGRESSIVE ALLOCATION Seeks long-term capital appreciation. o Equitable Life
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AXA CONSERVATIVE ALLOCATION Seeks a high level of current income. o Equitable Life
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AXA CONSERVATIVE-PLUS Seeks current income and growth of capital, with a o Equitable Life
ALLOCATION greater emphasis on current income.
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AXA MODERATE ALLOCATION Seeks long-term capital appreciation and current income. o Equitable Life
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AXA MODERATE-PLUS Seeks long-term capital appreciation and current income, o Equitable Life
ALLOCATION with a greater emphasis on capital appreciation.
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AXA PREMIER VIP AGGRESSIVE Seeks long-term growth of capital. o Alliance Capital Management L.P.
EQUITY
o MFS Investment Management
o Marsico Capital Management, LLC
o Provident Investment Counsel, Inc.
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AXA PREMIER VIP CORE BOND Seeks a balance of high current income and capital o BlackRock Advisors, Inc.
appreciation, consistent with a prudent level of risk.
o Pacific Investment Management Company
LLC
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AXA PREMIER VIP HEALTH CARE Seeks long-term growth of capital. o A I M Capital Management, Inc.
o RCM Capital Management LLC
o Wellington Management Company, LLP
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AXA PREMIER VIP HIGH YIELD Seeks high total return through a combination of current o Alliance Capital Management L.P.
income and capital appreciation.
o Pacific Investment Management Company
LLC
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AXA PREMIER VIP Seeks long-term growth of capital. o Alliance Capital Management L.P.,
INTERNATIONAL EQUITY through its Bernstein Investment
Research and Management Unit
o Bank of Ireland Asset Management
(U.S.) Limited
o Marsico Capital Management, LLC
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AXA PREMIER VIP LARGE CAP Seeks long-term growth of capital. o Alliance Capital Management L.P.,
CORE EQUITY through its Bernstein Investment
Research and Management Unit
o Janus Capital Management LLC
o Thornburg Investment Management, Inc.
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20 Contract features and benefits
Portfolios of the Trusts (continued)
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AXA Premier VIP Trust
Portfolio Name Objective Adviser(s)
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AXA PREMIER VIP LARGE CAP Seeks long-term growth of capital. o Alliance Capital Management L.P.
GROWTH
o RCM Capital Management LLC
o TCW Investment Management Company
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AXA PREMIER VIP LARGE CAP Seeks long-term growth of capital. o Alliance Capital Management L.P.
VALUE
o Institutional Capital Corporation
o MFS Investment Management
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AXA PREMIER VIP SMALL/MID Seeks long-term growth of capital. o Alliance Capital Management L.P.
CAP GROWTH
o Franklin Advisers, Inc.
o Provident Investment Counsel, Inc.
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AXA PREMIER VIP SMALL/MID Seeks long-term growth of capital. o AXA Rosenberg Investment Management LLC
CAP VALUE
o TCW Investment Management Company
o Wellington Management Company, LLP
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AXA PREMIER VIP TECHNOLOGY Seeks long-term growth of capital. o Firsthand Capital Management, Inc.
o RCM Capital Management LLC
o Wellington Management Company, LLP
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EQ Advisors Trust
Portfolio Name Objective Adviser(s)
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EQ/ALLIANCE COMMON STOCK Seeks to achieve long-term growth of capital. o Alliance Capital Management L.P.
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/ALLIANCE GROWTH AND Seeks to provide a high total return. o Alliance Capital Management L.P.
INCOME
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EQ/ALLIANCE INTERMEDIATE Seeks to achieve high current income consistent with o Alliance Capital Management L.P.
GOVERNMENT SECURITIES relative stability of principal.
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EQ/ALLIANCE INTERNATIONAL Seeks to achieve long-term growth of capital. o Alliance Capital Management L.P.
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/ALLIANCE PREMIER GROWTH Seeks to achieve long-term growth of capital. o Alliance Capital Management L.P.
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EQ/ALLIANCE QUALITY BOND Seeks to achieve high current income consistent with o Alliance Capital Management L.P.
moderate risk to capital.
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EQ/ALLIANCE SMALL CAP Seeks to achieve long-term growth of capital. o Alliance Capital Management L.P.
GROWTH
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EQ/BERNSTEIN DIVERSIFIED VALUE Seeks capital appreciation. o Alliance Capital Management L.P.,
through its Bernstein Investment Research
and Management Unit
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EQ/CALVERT SOCIALLY Seeks long-term capital appreciation. o Calvert Asset Management Company, Inc.
RESPONSIBLE and Brown Capital Management, Inc.
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EQ/CAPITAL GUARDIAN To achieve long-term growth of capital. o Capital Guardian Trust Company
INTERNATIONAL
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EQ/CAPITAL GUARDIAN Seeks to achieve long-term growth of capital. o Capital Guardian Trust Company
RESEARCH
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/CAPITAL GUARDIAN U.S. Seeks to achieve long-term growth of capital. o Capital Guardian Trust Company
EQUITY
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Contract features and benefits 21
Portfolios of the Trusts (continued)
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EQ Advisors Trust
Portfolio Name Objective Advisers
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/EMERGING MARKETS EQUITY Seeks long-term capital appreciation. o Morgan Stanley Investment Management,
Inc.
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EQ/EQUITY 500 INDEX Seeks a total return before expenses that approximates o 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.
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EQ/EVERGREEN OMEGA Seeks long-term capital growth. o Evergreen Investment Management
Company, LLC
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EQ/FI MID CAP Seeks long-term growth of capital. o Fidelity Management & Research Company
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/FI SMALL/MID CAP VALUE Seeks long-term capital appreciation. o Fidelity Management & Research Company
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/J.P.MORGAN CORE BOND Seeks to provide a high total return consistent with o J.P. Morgan Investment Management Inc.
moderate risk to capital and maintenance of liquidity.
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EQ/JANUS LARGE CAP GROWTH Seeks long-term growth of capital. o Janus Capital Management LLC
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/LAZARD SMALL CAP VALUE Seeks capital appreciation. o Lazard Asset Management, LLC
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/MARSICO FOCUS Seeks long-term growth of capital. o Marsico Capital Management, LLC
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/MERCURY BASIC VALUE Seeks capital appreciation and secondarily, income. o Mercury Advisors
EQUITY
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EQ/MERCURY INTERNATIONAL Seeks capital appreciation. o Merrill Lynch Investment Managers
VALUE International Limited
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EQ/MFS EMERGING GROWTH Seeks to provide long-term capital growth. o MFS Investment Management
COMPANIES
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EQ/MFS INVESTORS TRUST Seeks long-term growth of capital with secondary o MFS Investment Management
objective to seek reasonable current income.
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EQ/MONEY MARKET Seeks to obtain a high level of current income, o Alliance Capital Management L.P.
preserve its assets and maintain liquidity.
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EQ/PUTNAM GROWTH & INCOME Seeks capital growth. Current income is a secondary o Putnam Investment Management, LLC
VALUE objective.
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EQ/PUTNAM VOYAGER Seeks long-term growth of capital and any o Putnam Investment Management, LLC
increased income that results from this growth.
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EQ/SMALL COMPANY INDEX Seeks to replicate as closely as possible (before the o Alliance Capital Management L.P.
deduction of portfolio expenses) the total return of the
Russell 2000 Index.
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EQ/TECHNOLOGY Seeks to achieve long-term growth of capital. o Firsthand Capital Management, Inc.
o RCM Capital Management LLC
o Wellington Management Company, LLP
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Barr Rosenberg Variable
Insurance Trust
Portfolio Name Objective Investment Manager/Adviser
- ------------------------------------------------------------------------------------------------------------------------------------
LAUDUS ROSENBERG VIT VALUE Seeks to increase the value of your investment in bull o Charles Schwab Investment Management,
LONG/SHORT EQUITY markets and bear markets through strategies that are Inc.
designed to have limited exposure to general equity
market risk. o AXA Rosenberg Investment Management LLC
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22 Contract features and benefits
Portfolios of the Trusts (continued)
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The Universal Institutional
Funds, Inc.
Portfolio Name Objective Investment Manager
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U.S. REAL ESTATE -- Class II(1) Seeks to provide above average current income and long- o Van Kampen(2)
term capital appreciation by investing primarily in equity
securities of companies in the U.S. real estate industry,
including real estate investment trusts.
(1) 'Class II' Shares are defined in the current underlying Trust prospectus.
(2) Van Kampen is the name under which Morgan Stanley Investment Management Inc.
does business in certain situations.
You should consider the investment objectives, risks and charges and expenses of
the Portfolios carefully before investing. The prospectuses for the Trusts
contain this and other important information about the Portfolios. The
prospectuses should be read carefully before investing. In order to obtain
copies of Trust prospectuses that do not accompany this Prospectus, you may call
one of our customer service representatives at 1-800-789-7771.
Contract features and benefits 23
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. We reserve the right to change these procedures. All
interest rates are effective annual rates, but before deduction of annual
administrative charges (if permitted in your state).
The minimum yearly guaranteed interest rate is 3% for 2004. 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.
Generally, contributions and transfers into the guaranteed interest option are
limited to 25% of the account value. See "Transferring your money among the
investment options" later in the prospectus for restrictions on transfers to and
from the Guaranteed Interest Option.
FIXED MATURITY OPTIONS
We offer fixed maturity options with maturity dates ranging from one to ten
years. We will not accept allocations to a fixed maturity option if on the date
the contribution or transfer is to be applied the rate to maturity is 3%. This
means that at points in time there may be no fixed maturity options available.
You can allocate your contributions to one or more of these fixed maturity
options, however, you may not have more than 12 different maturities running
during any contract year. These amounts become part of a non-unitized separate
account. 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 all states. Check with your financial professional
to see if fixed maturity options are available in your state.
- --------------------------------------------------------------------------------
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.
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 amounts 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 offer fixed maturity options with
maturity dates ranging from one to ten years. Not all of these fixed maturity
options will be available for annuitant ages 76 and older. See "Allocating your
contributions" below.
Each new contribution is applied to a new fixed maturity option. When you apply
for an Accumulator(R) Select(SM) contract, a 60-day rate lock-in will apply from
the date the application is signed. Any contributions received and designated
for a fixed maturity option during this period will receive the then current
fixed maturity option rate or the rate that was in effect on the date that the
application was signed, whichever is greater. There is no rate lock available
for subsequent contributions to the contract after 60 days, transfers from the
variable investment options or the guaranteed interest option into a fixed
maturity option or transfers from one fixed maturity option to another.
YOUR CHOICES AT THE MATURITY DATE. We will notify you between 15 and 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 in "Allocating your contributions," below
would apply:
(a) transfer the maturity value into another available fixed maturity option,
any of the variable investment options or the guaranteed interest option;
or
(b) withdraw the maturity value.
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
shortest available maturity option beginning on that date. As of February 13,
2004, the next available maturity date was February 13, 2012. If no fixed
maturity options are available we will transfer your maturity value to the
EQ/Money Market option.
MARKET VALUE ADJUSTMENT. If you make any withdrawals (including transfers,
surrender 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 in effect at that time for new fixed maturity
options, (adjusted to reflect a similar maturity date) 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
24 Contract features and benefits
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 three ways to allocate your contributions under your
contract: self-directed, principal assurance or dollar cost averaging.
SELF-DIRECTED ALLOCATION
You may allocate your contributions to one or more, or all, of the variable
investment options, guaranteed interest option and fixed maturity options.
Allocations must be in whole percentages and you may change your allocations at
any time. No more than 25% of any contribution may be allocated to the
guaranteed interest option. The total of your allocations into all available
investment options must equal 100%. If the annuitant is age 76-80, you may
allocate contributions to fixed maturity options with maturities of seven years
or less. If the annuitant is age 81 or older, you may allocate contributions to
fixed maturity options with maturities of five years or less. Also, you may not
allocate amounts to fixed maturity options with maturity dates that are later
than the date annuity payments are to begin.
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 7 years from your contract date. If you make any withdrawals or
transfers from the fixed maturity option before the option's maturity date, the
amount in the fixed maturity option will be adjusted and may no longer grow to
equal your initial contribution under the principal assurance allocation.
Principal assurance will not be available if none of those maturity dates is
available. You allocate the rest of your contribution to the variable investment
options and guaranteed interest option. No more than 25% of the contribution can
be allocated to the Guaranteed Interest Option.
For example, if your initial contribution is $25,000, and on February 13, 2004
you chose the fixed maturity option with a maturity date of February 13, 2014,
since the rate to maturity was 3.73% on February 13, 2004, we would have
allocated $17,329 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 $25,000.
The principal assurance allocation is only available for annuitants ages 80 or
younger when the contract is issued. If the annuitant is age 76-80, your
principal assurance allocation is limited to the seven year fixed maturity
option only. If you anticipate taking required minimum distributions, you should
consider whether your values in the variable investment options and guaranteed
interest option are sufficient to meet your required minimum distributions. See
"Tax information" later in this Prospectus and in the SAI.
Please check with your financial professional if the principal assurance
allocation feature is available in your state. Also, you may not elect principal
assurance if the 12 month dollar cost averaging program is in effect.
DOLLAR COST AVERAGING
We offer a variety of dollar cost averaging programs. You may only participate
in one program at a time. Each program allows you to gradually allocate amounts
to the other 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 value is low and
fewer units if the unit value is high. Therefore, you may get a lower average
cost per unit over the long term. These plans of investing, however, do not
guarantee that you will earn a profit or be protected against losses. You may
not make transfers to the fixed maturity options or the guaranteed interest
option.
- --------------------------------------------------------------------------------
Units measure your value in each variable investment option.
- --------------------------------------------------------------------------------
12 MONTH DOLLAR COST AVERAGING PROGRAM. You may dollar cost average from the
EQ/Money Market option into any of the other variable investment options. You
may elect to participate in the 12 month dollar cost averaging program at any
time subject to the age limitation on contributions described earlier in this
Prospectus. Contributions into the account for 12 month dollar cost averaging
may not be transfers from other investment options. You must allocate your
entire initial contribution into the EQ/Money Market option if you are selecting
the 12 month dollar cost averaging program at application to purchase an
Accumulator(R) Select(SM) contract; thereafter, initial allocations to any new
12 month dollar cost averaging program time period must be at least $2,000 and
any subsequent contribution to that same time period must be at least $250. You
may only have one time period in effect at any time. We will transfer your value
in the EQ/Money Market option into the other variable investment options that
you select over the next 12 months or such other period we may offer. Once the
time period then in effect has run, you may then select to participate in the
dollar cost averaging program for an additional time period. At that time, you
may also select a different allocation for transfers to the variable investment
options, or, if you wish, we will continue to use the selection that you have
previously made.
Currently, the transfer date will be the same day of the month as the contract
date, but not later than the 28th. For a 12 month dollar cost averaging program
selected after application, the first transfer date and each subsequent transfer
date for the time period selected will be one month from the date the first
contribution is made into the 12 month dollar cost averaging program, but not
later than the 28th of
Contract features and benefits 25
the month. All amounts will be transferred out by the end of the time period
then in effect. Under this program we will not deduct the mortality and expense
risks, administrative, and distribution charges from assets in the EQ/Money
Market option.
You may not transfer amounts to the EQ/Money Market option established for this
program that are not part of the 12 month dollar cost averaging program. The
only amounts that should be transferred from the EQ/Money Market option are your
regularly scheduled transfers to the other variable investment options. If you
request to transfer or withdraw any other amounts from the EQ/Money Market
option, we will transfer all of the value that you have remaining in the account
for 12 month dollar cost averaging to the investment options according to the
allocation percentages we have on file for you. You may ask us to cancel your
participation at any time.
GENERAL DOLLAR COST AVERAGING PROGRAM. If your value in the EQ/Money Market
option is at least $5,000, you may choose, at any time, to have a specified
dollar amount or percentage of your value transferred from that option to the
other variable investment options. You can select to have transfers made on a
monthly, quarterly or annual basis. The transfer date will be the same calendar
day of the month as the contract date, but not later than the 28th day of the
month. You can also specify the number of transfers or instruct us to continue
making the transfers until all amounts in the EQ/Money Market option have been
transferred out.
The minimum amount that we will transfer each time is $250. The maximum amount
we will transfer is equal to your value in the EQ/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/Money Market option is equal to
or less than the amount you have elected to have transferred, the entire amount
will be transferred. The general dollar cost averaging program will then end.
You may change the transfer amount once each contract year or cancel this
program at any time.
INVESTMENT SIMPLIFIER
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. Transfers may be made on a monthly, quarterly
or annual basis. You can specify the number of transfers or instruct us to
continue to make 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. The transfer date will be the same calendar day of the month
as the contract date but not later than the 28th day of the month. The minimum
transfer amount is $50. The fixed-dollar option is subject to the guaranteed
interest option transfer limitations described under "Transferring your account
value" in "Transferring your money among investment options" later in this
Prospectus. While the program is running, any transfer that exceeds those
limitations will cause the program to end for that contract year. You will be
notified. You must send in a request form to resume the program in the next or
subsequent contract years.
If, on any transfer date your value in the guaranteed interest option is equal
to or less than the amount you have elected to have transferred, the entire
amount will be transferred, and the program will end. You may change the
transfer amount once each contract year or cancel this program at any time.
Interest sweep option. Under this option, you may elect to have monthly
transfers from amounts in the guaranteed interest option into the variable
investment options of your choice. The transfer date will be the last business
day of the month. 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. We will automatically cancel the interest sweep
program if the amount in the guaranteed interest option is less than $7,500 on
the last day of the month for two months in a row. For the interest sweep
option, 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.
----------------------------------
You may not participate in any dollar cost averaging program if you are
participating in the rebalancing program. You may not elect the 12 Month Dollar
Cost Averaging Program if the principal assurance program is in effect. See
"Transferring your money among investment options" later in this Prospectus.
YOUR BENEFIT BASE
A benefit base is used to calculate the guaranteed minimum income benefit and
any death benefit as described in this section. Your benefit base is not an
account value or a cash value. See also "Our Living Benefit option" and
"Guaranteed minimum death benefit" below.
STANDARD DEATH BENEFIT. Your benefit base is equal to:
o your initial contribution and any additional contributions to the contract;
less
o a deduction that reflects any withdrawals you make (the amount of the
deduction is described under "How withdrawals affect your guaranteed minimum
income benefit and guaranteed minimum death benefit" in "Accessing your
money" later in this Prospectus).
6% ROLL UP TO AGE 85 ENHANCED DEATH BENEFIT. Your benefit base is equal to:
o your initial contribution and any additional contributions to the contract;
plus
o daily interest; less
o a deduction that reflects any withdrawals you make (the amount of the
deduction is described under "How withdrawals affect your guaranteed minimum
income benefit and guaranteed minimum death benefit" in "Accessing your
money" later in this Prospectus).
The effective annual interest rate credited to this benefit base is:
o 6% (4% in Washington for the enhanced death benefit only) with respect to
the variable investment options (other than EQ/Alliance
26 Contract features and benefits
Intermediate Government Securities and EQ/Money Market) and monies allocated
to the 12 month dollar cost averaging program; and
o 3% with respect to the EQ/Alliance Intermediate Government Securities and
EQ/Money Market, the fixed maturity options, the guaranteed interest option
and the loan reserve account under Rollover TSA (if applicable).
No interest is credited to the benefit base after the contract anniversary
following the annuitant's 85th birthday.
ANNUAL RATCHET TO AGE 85 ENHANCED DEATH BENEFIT. Your benefit base is equal to
the greater of:
o your initial contribution to the contract (plus any additional
contributions),
or
o your highest account value on any contract anniversary up to the contract
anniversary following the annuitant's 85th birthday, plus any contributions
made since the most recent contract anniversary,
each less
o a deduction that reflects any withdrawals you make (the amount of the
deduction is described under "How withdrawals affect your guaranteed minimum
income benefit and guaranteed minimum death benefit" in "Accessing your
money" later in this Prospectus).
GREATER OF THE 6% ROLL UP TO AGE 85 OR THE ANNUAL RATCHET TO AGE 85 ENHANCED
DEATH BENEFIT AND THE GUARANTEED MINIMUM INCOME BENEFIT. Your benefit base is
equal to the greater of the benefit base computed for the 6% Roll up to age 85
or the benefit base computed for Annual ratchet to age 85, as described
immediately above, on each contract anniversary.
ANNUITY PURCHASE FACTORS
Annuity purchase factors are the factors applied to determine your periodic
payments under the guaranteed minimum income benefit and annuity payout options.
The guaranteed minimum income benefit is discussed in "Our Living Benefit
option" below and annuity payout options are discussed in "Accessing your money"
later in this Prospectus. The guaranteed annuity purchase factors are those
factors specified in your contract. The current annuity purchase factors are
those factors that are in effect at any given time. Annuity purchase factors are
based on interest rates, mortality tables, frequency of payments, the form of
annuity benefit, and the annuitant's (and any joint annuitant's) age and sex in
certain instances.
OUR LIVING BENEFIT OPTION
The Living Benefit option offers you a guaranteed minimum income benefit. The
Living Benefit is available if the annuitant is age 20 through 75 at the time
the contract is issued. There is an additional charge for the Living Benefit
which is described under "Living Benefit charge" in "Charges and expenses" later
in this Prospectus. Please ask your financial professional if the Living Benefit
is available in your state. If you are purchasing this contract as an Inherited
IRA the guaranteed minimum income benefit is not available. If you are
purchasing this contract to fund a Charitable Remainder Trust, the guaranteed
minimum income benefit is generally not available. Subject to our rules, the
Living Benefit may be available for certain split-funded Charitable Remainder
Trusts.
The guaranteed minimum income benefit guarantees you a minimum amount of fixed
income under your choice of a life annuity fixed payout option or an Income
Manager level payment life with a period certain payout option, subject to state
availability. You choose which of these payout options you want and whether you
want the option to be paid on a single or joint life basis at the time you
exercise your guaranteed minimum income benefit. The maximum period certain
available under the Income Manager payout option is 10 years. This period may be
shorter, depending on the annuitant's age as follows:
- ----------------------------------------
Level payments
- ----------------------------------------
Period certain years
----------------------
Annuitant's
age at exercise IRAs NQ
- ----------------------------------------
60 to 75 10 10
76 9 10
77 8 10
78 7 10
79 7 10
80 7 10
81 7 9
82 7 8
83 7 7
84 6 6
85 5 5
- ----------------------------------------
We may also make other forms of payout options available. For a description of
payout options, see "Your annuity payout options" in "Accessing your money"
later in this Prospectus.
- --------------------------------------------------------------------------------
The guaranteed minimum income benefit, which is also known as a living benefit,
should be regarded as a safety net only. It provides income protection if you
elect an income payout while the annuitant is alive.
- --------------------------------------------------------------------------------
When you exercise the guaranteed minimum income benefit, the annual lifetime
income that you will receive will be the greater of (i) your guaranteed minimum
income benefit which is calculated by applying your guaranteed minimum income
benefit base less any outstanding loan plus accrued interest (applies to
Rollover TSA only) at guaranteed annuity purchase factors, or (ii) the income
provided by applying your actual account value at our then current annuity
purchase factors. The benefit base is applied only to the Living Benefit
guaranteed annuity purchase factors in your contract and not to any other
guaranteed or current annuity purchase rates. The amount of income you actually
receive will be determined when we receive your request to exercise the benefit.
Contract features and benefits 27
When you elect to receive annual lifetime income, your contract will terminate
and you will receive a new contract for the annuity payout option. For a
discussion of when your payments will begin and end, see "Exercise of guaranteed
minimum income benefit" below.
Before you elect the Living Benefit, you should consider the fact that the
guaranteed minimum income benefit provides a form of insurance and is based on
conservative actuarial factors. The guaranteed annuity purchase factors we use
to determine your Income Manager benefit under the Living Benefit are more
conservative than the guaranteed annuity purchase factors we use for the Income
Manager payout annuity option. This means that, assuming the same amount is
applied to purchase the benefit and that we use guaranteed annuity purchase
factors to compute the benefit, each periodic payment under the Living Benefit
Income Manager will be smaller than each periodic payment under the Income
Manager payout annuity option. Therefore, even if your account value is less
than your benefit base, you may generate more income by applying your account
value to current annuity purchase factors. We will make this comparison for you
when the need arises.
ILLUSTRATIONS OF GUARANTEED MINIMUM INCOME BENEFIT. Assuming the 6% Roll up to
age 85 benefit base, the table below illustrates the guaranteed minimum income
benefit amounts per $100,000 of initial contribution, for a male annuitant age
60 (at issue) on the contract date anniversaries indicated, who has elected the
life annuity fixed payout option, using the guaranteed annuity purchase factors
as of the date of this Prospectus, assuming no additional contributions,
withdrawals or loans under Rollover TSA contracts, and assuming there were no
allocations to the EQ/Alliance Intermediate Government Securities, EQ/Money
Market, the guaranteed interest option, the fixed maturity options or the loan
reserve account.
- ---------------------------------------------------------
Guaranteed minimum income
Contract date benefit -- annual income pay-
anniversary at exercise able for life
- ---------------------------------------------------------
10 $11,891
15 $18,597
- ---------------------------------------------------------
EXERCISE OF GUARANTEED MINIMUM INCOME BENEFIT. On each contract date anniversary
that you are eligible to exercise the guaranteed minimum income benefit, we will
send you an eligibility notice illustrating how much income could be provided as
of the contract date anniversary. You must notify us within 30 days following
the contract date anniversary if you want to exercise the guaranteed minimum
income benefit. You must return your contract to us along with all required
information in order to exercise this benefit. You will begin receiving annual
payments one year after the annuity payout contract is issued. You may choose to
take a withdrawal prior to exercising the guaranteed minimum income benefit,
which will reduce your payments. You may not partially exercise this benefit.
See "Accessing your money" under "Withdrawing your account value" later in this
Prospectus. Payments end with the last payment before the annuitant's (or joint
annuitant's, if applicable) death or, if later, then end of the period certain
(where the payout option chosen includes a period certain).
You will be eligible to exercise the guaranteed minimum income benefit as
follows:
o If the annuitant was at least age 20 and no older than age 44 when the
contract was issued, you are eligible to exercise the guaranteed minimum
income benefit within 30 days following each contract date anniversary
beginning with the 15th contract date anniversary.
o If the annuitant was at least age 45 and no older than age 49 when the
contract was issued, you are eligible to exercise the guaranteed minimum
income benefit within 30 days following each contract date anniversary after
the annuitant is age 60.
o If the annuitant was at least age 50 and no older than age 75 when the
contract was issued, you are eligible to exercise the guaranteed minimum
income benefit within 30 days following each contract date anniversary
beginning with the 10th contract date anniversary.
Please note:
(i) the latest date you may exercise the guaranteed minimum income benefit is
the contract date anniversary following the annuitant's 85th birthday;
(ii) if the annuitant was age 75 when the contract was issued, the only time
you may exercise the guaranteed minimum income benefit is within 30 days
following the first contract date anniversary that it becomes available;
(iii) if the annuitant was older than age 60 at the time an IRA or Rollover TSA
contract was issued, the Living Benefit may not be an appropriate feature
because the minimum distributions required by tax law generally must begin
before the guaranteed minimum income benefit can be exercised;
(iv) for Rollover TSA contracts, if you are eligible to exercise your
guaranteed minimum income benefit, we will first roll over amounts in such
contract to a Rollover IRA contract. You will be the owner of the Rollover
IRA contract; and
(v) for a successor owner/annuitant, the earliest exercise date is based on
the original contract issue date and the age of the successor
owner/annuitant as of the Processing Date successor owner/annuitant takes
effect.
Please see both "Termination of your contract" in "Determining your contract
value" and "How withdrawals affect your guaranteed minimum income benefit and
guaranteed minimum death benefit" in "Accessing your money" later in this
Prospectus for more information on these guaranteed benefits.
GUARANTEED MINIMUM DEATH BENEFIT
Your contract provides a death benefit. If you do not elect one of the enhanced
death benefits 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 standard death benefit, whichever provides the highest
amount. The standard death benefit is equal to your total contributions
(adjusted for any withdrawals and any taxes that apply).
If you elect one of the enhanced death benefits, the death benefit is equal to
your account value as of the date we receive satisfactory proof of the
annuitant's death, any required instructions for the
28 Contract features and benefits
method of payment, information and forms necessary to effect payment OR your
elected enhanced death benefit on the date of the annuitant's death (adjusted
for any subsequent withdrawals and taxes that apply), whichever provides the
highest amount.
OPTIONAL ENHANCED DEATH BENEFITS APPLICABLE FOR ANNUITANT AGES 0 THROUGH 84 AT
ISSUE OF NQ CONTRACTS; 20 THROUGH 84 AT ISSUE OF ROLLOVER IRA, ROTH CONVERSION
IRA AND ROLLOVER TSA CONTRACTS; AND 0 THROUGH 70 AT ISSUE OF INHERITED IRA
CONTRACTS.
Subject to state availability, you may elect one of the following enhanced death
benefits:
6% ROLL UP TO AGE 85.
ANNUAL RATCHET TO AGE 85.
THE GREATER OF THE 6% ROLL UP TO AGE 85 OR THE ANNUAL RATCHET TO AGE 85.
Each enhanced death benefit is equal to its corresponding benefit base described
earlier in "Your benefit base." Once you have made your enhanced death benefit
election, you may not change it. In New York, only the standard death benefit
and the annual ratchet to age 85 enhanced death benefit are available.
The standard death benefit is the only death benefit available for annuitants
age 85 at issue of NQ, Rollover IRA, Roth Conversion IRA and Rollover TSA
contracts.
----------------------------------
Please see both "Termination of your contract" in "Determining your contract
value" and "How withdrawals affect your guaranteed minimum income benefit and
guaranteed minimum death benefit" in "Accessing your money" later in this
Prospectus for more information on these guaranteed benefits.
See Appendix III at the end of this Prospectus for an example of how we
calculate an enhanced death benefit.
Protection Plus
Subject to state and contract availability, if you are purchasing a contract
under which the Protection Plus feature is available, you may elect the
Protection Plus death benefit at the time you purchase your contract. Protection
Plus provides an additional death benefit as described below. See the
appropriate part of "Tax information" later in this Prospectus for the potential
tax consequences of electing to purchase the Protection Plus feature in an NQ,
IRA or Rollover TSA contract.
If the annuitant is 70 or younger when we issue your Contract (or if the
successor owner/annuitant is 70 or younger when he or she becomes the successor
owner/annuitant), the death benefit will be:
the greater of:
o the account value or
o any applicable death benefit
Increased by:
o such death benefit less total net contributions, multiplied by 40%.
For purposes of calculating your Protection Plus benefit, the following applies:
(i) "Net contributions" are the total contributions made (or, if applicable, the
total amount that would otherwise have been paid as a death benefit had the
successor owner/annuitant election not been made plus any subsequent
contributions) reduced on a pro rata basis to reflect withdrawals (including
loans). Reduction on a pro rata basis means that we calculate the percentage of
the current account value that is being withdrawn and we reduce net
contributions by that percentage. For example, if the account value is $30,000
and you withdraw $12,000, you have withdrawn 40% of your account value. If
contributions aggregated $40,000 before the withdrawal, it would be reduced by
$16,000 ($40,000 x .40) and net contributions after the withdrawal would be
$24,000 ($40,000-$16,000); (ii) "Death benefit" is equal to the greater of the
account value as of the date we receive satisfactory proof of death or any
applicable guaranteed minimum death benefit as of the date of death.
If the annuitant is age 71 through 79 when we issue your contract (or if the
successor owner/annuitant is between the ages of 71 and 79 when he or she
becomes the successor owner/annuitant and Protection Plus had been elected at
issue), the death benefit will be:
the greater of:
o the account value or
o any applicable death benefit
Increased by:
o such death benefit (as described above) less total net contributions,
multiplied by 25%.
The value of the Protection Plus death benefit is frozen on the first contract
date anniversary after the annuitant turns age 80, except that the benefit will
be reduced for withdrawals on a pro rata basis. Protection Plus must be elected
when the contract is first issued: neither the owner nor the successor
owner/annuitant can add it subsequently. Ask your financial professional if this
feature is available in your state.
INHERITED IRA BENEFICIARY CONTINUATION CONTRACT
This contract is available to an individual beneficiary of a traditional IRA or
a Roth IRA where the deceased owner held the individual retirement account or
annuity (or Roth individual retirement account or annuity) with an insurance
company or financial institution other than Equitable. The purpose of the
inherited IRA beneficiary continuation contract is to permit the beneficiary to
change the funding vehicle that the deceased owner selected ("original IRA")
while taking the required minimum distribution payments that must be made to the
beneficiary after the deceased owner's death. This contract is intended only for
beneficiaries who want to take payments at least annually over their life
expectancy. These payments generally must begin (or must have begun) no later
than December 31 of the calendar year following the year the deceased owner
died. This contract is not suitable for beneficiaries electing the "5-year
rule." See "Beneficiary continuation option for IRA and Roth IRA contracts"
under "Beneficiary continuation option" in "Payment of death benefit" later in
this Prospectus. You should discuss with your tax adviser your own personal
situation. This contract may not be available in all states. Please speak with
your financial professional for further information.
Contract features and benefits 29
The inherited IRA beneficiary continuation contract can only be purchased by a
direct transfer of the beneficiary's interest under the deceased owner's
original IRA. The owner of the inherited IRA beneficiary continuation contract
is the individual who is the beneficiary of the original IRA. (Certain trusts
with only individual beneficiaries will be treated as individuals for this
purpose). The contract must also contain the name of the deceased owner. In this
discussion, "you" refers to the owner of the inherited IRA beneficiary
continuation contract.
The inherited IRA beneficiary continuation contract can be purchased whether or
not the deceased owner had begun taking required minimum distribution payments
during his or her life from the original IRA or whether you had already begun
taking required minimum distribution payments of your interest as a beneficiary
from the deceased owner's original IRA. You should discuss with your own tax
adviser when payments must begin or must be made.
Under the inherited IRA beneficiary continuation contract:
o You must receive payments at least annually (but can elect to receive
payments monthly or quarterly). Payments are generally made over your life
expectancy determined in the calendar year after the deceased owner's death
and determined on a term certain basis.
o The beneficiary of the original IRA will be the annuitant under the
inherited IRA beneficiary continuation contract. In the case where the
beneficiary is a "See Through Trust," the oldest beneficiary of the trust
will be the annuitant.
o An inherited IRA beneficiary continuation contract is not available for
annuitants over age 70.
o The initial contribution must be a direct transfer from the deceased
owner's original IRA and is subject to minimum contribution amounts. See
"How you can purchase and contribute to your contract" earlier in this
section.
o Subsequent contributions of at least $1,000 are permitted but must be
direct transfers of your interest as a beneficiary from another IRA with a
financial institution other than Equitable, where the deceased owner is the
same as under the original IRA contract.
o You may make transfers among the investment options.
o You may choose at any time to withdraw all or a portion of the account
value. Any partial withdrawal must be at least $300.
o The Living Benefit, successor owner/annuitant feature, 12-month dollar cost
averaging program, automatic investment program and systematic withdrawals
are not available under the Inherited IRA beneficiary continuation
contract.
o If you die, we will pay to a beneficiary that you choose the greater of the
annuity account value or the applicable death benefit.
o Upon your death, your beneficiary has the option to continue taking
required minimum distributions based on your remaining life expectancy or
to receive any remaining interest in the contract in a single 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. If your
beneficiary elects to continue to take distributions, we will increase the
account value to equal the applicable death benefit if such death benefit
is greater than such account value as of the date we receive satisfactory
proof of death and any required instructions, information and forms. If
you had elected any enhanced death benefits, they will no longer be in
effect and charges for such benefits will stop. The minimum guaranteed
death benefit will also no longer be in effect.
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,
with a signed letter of instruction electing this right, to our processing
office within 10 days after you receive it. If state law requires, this "free
look" period may be longer.
Generally, your refund will be the same as any other surrender and you will
receive your account value under the contract on the day we receive notification
of your decision to cancel the contract, which will reflect (i) any investment
gain or loss in the variable investment options (less the daily charges we
deduct), (ii) any guaranteed interest in the guaranteed interest option, and
(iii) any positive or negative market value adjustments in the fixed maturity
options through the date we receive your contract. Some states, however, require
that we refund the full amount of your contribution (not reflecting (i), (ii) or
(iii) above). For any IRA contract 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 may 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 and in the SAI for
possible consequences of cancelling your contract.
In addition to the cancellation right described above, if you fully convert an
existing traditional IRA contract to a Roth Conversion IRA contract, you may
cancel your Roth Conversion IRA contract and return to a Rollover IRA contract.
Our processing office, or your financial professional, can provide you with the
cancellation instructions.
30 Contract features and benefits
2. Determining your contract's value
- --------------------------------------------------------------------------------
YOUR ACCOUNT VALUE AND CASH VALUE
Your "account value" is the total of the values you have in: (i) the variable
investment options; (ii) the guaranteed interest option; (iii) market adjusted
amounts in the fixed maturity options; and (iv) the loan reserve account
(applicable to Rollover TSA contracts only).
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) the
total amount or a pro rata portion of the annual administrative charge as well
as optional benefit charges; and (ii) the amount of any outstanding loan plus
accrued interest (applicable to Rollover TSA contracts only). Please see
"Surrendering 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.
The unit value for each variable investment option depends on the investment
performance of that option, less daily charges for:
(i) mortality and expense;
(ii) administrative expenses; and
(iii) distribution charges.
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;
(iii) increased to reflect a transfer into, or decreased to reflect a transfer
out of, a variable investment option; or
(iv) increased or decreased to reflect a transfer of your loan amount from or
to the loan reserve account under a Rollover TSA contract.
In addition, when we deduct the enhanced death benefit, Living Benefit and/or
the Protection Plus benefit charges the number of units credited to your
contract will be reduced. Your units are also reduced when we deduct the annual
administrative charge. 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 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, provided there
have been no withdrawals or transfers.
TERMINATION OF YOUR CONTRACT
Your contract will terminate without value if your account value is insufficient
to pay any applicable charges when due. Your account value could become
insufficient due to withdrawals and/or poor market performance. Upon such
termination, you will lose any applicable guaranteed benefits.
Determining your contract's value 31
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 may not transfer to a fixed maturity option that has a rate to maturity
of 3% or less.
o You may not transfer any amount to the 12-month dollar cost averaging
program.
o If the annuitant is age 76-80, you must limit your transfers to fixed
maturity options with maturities of seven years or less. If the annuitant is
age 81 or older, you must limit your transfers to fixed maturity options of
five years or less. As of February 13, 2003 maturities of less than eight
years were not available. Also, the maturity dates may be no 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 During the first contract year, transfers into the guaranteed interest
option are not permitted.
o After the first contract year, a transfer into the guaranteed interest
option will not be permitted if such transfer would result in more than 25%
of the annuity account value being allocated to the guaranteed interest
option, based on the annuity account value as of the previous business day.
In addition, we reserve the right to restrict transfers among variable
investment options as described in your contract, including limitations on the
number, frequency, or dollar amount of transfers.
The maximum amount that may be transferred from the guaranteed interest option
to any investment option (including amounts transferred pursuant to the
fixed-dollar option and interest sweep option dollar cost averaging programs
described under "Allocating your contributions" in "Contract features and
benefits" earlier in this Prospectus) in any contract year is the greatest of:
(a) 25% of the amount you have in the guaranteed interest option on the last
day of the prior contract year; or
(b) the total of all amounts transferred at your request from the guaranteed
interest option to any of the Investment options in the prior contract
year; or
(c) 25% of amounts transferred or allocated to the guaranteed interest option
during the current contract year.
From time to time, we may remove the restrictions regarding transferring amounts
out of the guaranteed interest option. 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, if any
dollar cost averaging transfer out of the guaranteed interest option causes a
violation of the 25% outbound restriction, that dollar cost averaging program
will be terminated for the current contract year. A new dollar cost averaging
program can be started in the next or subsequent contract years.
You may request a transfer in writing, by telephone using TOPS or through
EQAccess. You must send in all written transfer requests directly to our
processing office. Transfer requests should specify:
(1) the contract number,
(2) the dollar amounts or percentages of your current account value 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 Accumulator(R) Select(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.
Frequent transfers, including market timing and other program trading
strategies, may be disruptive to the underlying portfolios in which the variable
investment options invest. Disruptive transfer activity may hurt the long term
performance of a portfolio by, for example, requiring it to maintain larger
amounts of cash or to liquidate portfolio holdings at a disadvantageous time or
price. We currently use the procedures described below to discourage disruptive
transfer activity in AXA Premier VIP Trust and EQ Advisors Trust. You should
understand, however, that these procedures are subject to the following
limitations: (1) they do not eliminate the possibility that disruptive transfer
activity, including market timing, will occur or that portfolio performance will
be affected by such activity; (2) the design of these procedures involves
inherently subjective judgments, which we and AXA Premier VIP Trust and EQ
Advisors Trust seek to make in a fair and reasonable manner consistent with
interests of all policy and contract owners. Certain frequent transfer
activities attempt to exploit inefficiencies in how portfolio securities are
valued. Please see the prospectuses for the underlying portfolios for more
information on how portfolio shares are priced.
If we determine that your transfer patterns are disruptive, 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. 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 reduce disruptive activity,
32 Transferring your money among investment options
we monitor the frequency of transfers, including the size of transfers in
relation to portfolio assets, in each underlying portfolio. When a potentially
disruptive transfer into or out of a portfolio occurs on a day when the
portfolio's aggregate deposits or aggregate redemptions exceed our monitoring
threshold, we may take the actions described above to restrict availability of
voice, fax and automated transaction services. We currently apply such action
for the remaining life of each affected contract. We also currently provide a
letter to owners who have engaged in disruptive transfer activity of our
intention to restrict access to communication 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 potentially disruptive transfer
activity and our monitoring procedures and thresholds, as well as change our
procedures to restrict this activity.
Our ability to monitor potentially disruptive transfer activity is limited in
certain circumstances. Group annuity contracts may be owned by retirement plans
on whose behalf we provide transfer instructions on an omnibus (aggregate)
basis, which may mask the disruptive transfer activity of individual plan
participants, and/or interfere with our ability to restrict communication
services. Also, underlying portfolios that are not in AXA Premier VIP Trust or
EQ Advisors Trust may be available for investment through companies that may
have policies and procedures regarding disruptive transfer activity that are
different from ours. Please see the prospectuses for those underlying portfolios
for more information.
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 on a contract year basis).
Rebalancing will occur on the same day of the month as the contract date. If a
contract is established after the 28th, rebalancing will occur on the first
business day of the month following the contract issue date.
While your rebalancing program is in effect, we will transfer amounts among the
variable investment options 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. 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; your rebalancing allocations will not be changed, and the
rebalancing program will remain in effect unless you request that it be canceled
in writing. There is no charge for the rebalancing feature.
You may not elect the rebalancing program if you are participating in any dollar
cost or 12 month dollar cost averaging program. Rebalancing is not available for
amounts you have allocated to the guaranteed interest option or the fixed
maturity options.
Transferring your money among investment options 33
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. If you request to withdraw more than 90% of
a contract's current cash value, we will treat it as a request to surrender the
contract for its cash value. See "Surrendering your contract to receive its cash
value" below. For the tax consequences of withdrawals, see "Tax information"
later in this Prospectus and in the SAI.
Please see "Termination of your contract" in "Determining your contract value"
earlier in this Prospectus and "How withdrawals affect your guaranteed minimum
income benefit and guaranteed minimum death benefit" below for more information
on how withdrawals affect your guaranteed benefits and could potentially cause
your contract to terminate.
- --------------------------------------------------------------------------------
Method of withdrawal
------------------------------------------------------------
Lifetime
required
Substantially minimum
Contract Lump sum Systematic equal distribution
- --------------------------------------------------------------------------------
NQ Yes Yes No No
- --------------------------------------------------------------------------------
Rollover IRA Yes Yes Yes Yes
- --------------------------------------------------------------------------------
Roth
Conversion IRA Yes Yes Yes No
- --------------------------------------------------------------------------------
Rollover TSA* Yes Yes No Yes
- --------------------------------------------------------------------------------
Inherited IRA Yes No No **
- --------------------------------------------------------------------------------
* For some Rollover TSA contracts, your ability to take withdrawals, loans or
surrender your contract may be limited. You must provide withdrawal
restriction information when you apply for a contract. See "Tax Sheltered
Annuity contracts (TSAs)" in "Tax information" later in this Prospectus and
in the SAI.
** This contract pays out post-death required minimum distributions. See
"Inherited beneficiary contract" in "Contract features and benefits" earlier
in this Prospectus.
LUMP SUM WITHDRAWALS
(All contracts)
You may take lump sum withdrawals from your account value at any time. (Rollover
TSA contracts may have restrictions.) The minimum amount you may withdraw is
$300.
Under Rollover TSA contracts, if a loan is outstanding, you may only take lump
sum withdrawals as long as the cash value remaining after any withdrawal equals
at least 10% of the outstanding loan plus accrued interest.
SYSTEMATIC WITHDRAWALS
(NQ, Rollover TSA and Rollover IRA and Roth Conversion IRA contracts)
You may take systematic withdrawals of a particular dollar amount or a
particular percentage of your account value. (Rollover TSA contracts may have
restrictions).
You may take systematic withdrawals on a monthly, quarterly or annual basis as
long as the withdrawals do not exceed the following percentages of your account
value: 1.2% monthly, 3.6% quarterly and 15.0% annually. The minimum amount you
may take in each systematic withdrawal is $250. If the amount withdrawn would be
less than $250 on the date a withdrawal is to be taken, we will not make a
payment and we will terminate your systematic withdrawal election.
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, we
will make the withdrawals on the same calendar day of the month as the contract
date. You must wait at least 28 days after your contract is issued before your
systematic withdrawals can begin.
You may elect to take systematic withdrawals at any time. If you own an IRA
contract, you may elect this withdrawal method only if you are between ages
59-1/2 and 70-1/2.
You may change the payment frequency, or the amount or percentage of your
systematic withdrawals, once each contract year. However, you may not change the
amount or percentage in any contract year in which you have already taken a lump
sum withdrawal. You can cancel the systematic withdrawal option at any time.
SUBSTANTIALLY EQUAL WITHDRAWALS
(All Rollover IRA and Roth Conversion IRA contracts)
We offer our "substantially equal withdrawals option" to allow you to receive
distributions from your account value without triggering the 10% additional
federal income tax penalty, which normally applies to distributions made before
age 59-1/2. See "Tax information" later in this Prospectus and in the SAI. We
use one of the IRS-approved methods for doing this; this is not the exclusive
method of meeting this exception. After consultation with your tax adviser, you
may decide to use another method which would require you to compute amounts
yourself and request lump sum withdrawals. In such a case, a withdrawal charge
may apply. Once you begin to take substantially equal withdrawals, you should
not stop them or change the pattern of your withdrawals until after the later of
age 59-1/2 or five full years after the first withdrawal. If you stop or change
the withdrawals or take a lump sum withdrawal, you may be liable for the 10%
federal tax penalty that would have otherwise been due on prior withdrawals made
under this option and for any interest on the delayed payment of the penalty.
In accordance with IRS guidance, an individual who has elected to receive
substantially equal withdrawals may change, without penalty, from one of the
IRS-approved methods of calculating fixed payments to another IRS-approved
method (similar to the required minimum distribution rules) of calculating
payments which vary each year.
You may elect to take substantially equal withdrawals at any time before age
59-1/2. 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. You may not elect to
receive the first payment in the same contract year in which you took a lump sum
withdrawal. We will cal-
34 Accessing your money
culate the amount of your substantially equal withdrawals using the IRS-approved
method we offer. The payments will be made monthly, quarterly or annually as you
select. These payments will continue until we receive written notice from you to
cancel this option or you take a lump sum withdrawal. You may elect to start
receiving substantially equal withdrawals again, but the payments may not
restart in the same contract year in which you took a lump sum withdrawal. We
will calculate the new withdrawal amount.
LIFETIME REQUIRED MINIMUM DISTRIBUTION WITHDRAWALS
(Rollover IRA and Rollover TSA contracts only -- See "Tax information" later in
this Prospectus and in the SAI)
We offer the minimum distribution withdrawal option to help you meet 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 or in any later year. The
minimum amount we will pay out is $250. Currently, minimum distribution
withdrawal payments will be made annually. See "Required minimum distributions"
in "Tax information" later in this Prospectus and in the SAI for your specific
type of retirement arrangement.
Under Rollover TSA contracts, you may not elect minimum distribution withdrawals
if a loan is outstanding.
- --------------------------------------------------------------------------------
For Rollover IRA and Rollover TSA contracts, 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).
- --------------------------------------------------------------------------------
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 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) first.
A market value adjustment may apply to withdrawals from the fixed maturity
options.
HOW WITHDRAWALS AFFECT YOUR GUARANTEED MINIMUM INCOME BENEFIT AND GUARANTEED
MINIMUM DEATH BENEFIT
Withdrawals will reduce your guaranteed benefits on either a dollar-for-dollar
basis or on a pro rata basis as explained below:
INCOME BENEFIT AND DEATH BENEFIT
Your applicable benefit base will be reduced on a dollar-for-dollar basis as
long as the sum of your withdrawals in a contract year is 6% or less of the
applicable benefit base on the most recent contract date anniversary. Any
portion of a withdrawal that causes the sum of your withdrawals in a contract
year to exceed 6% of the applicable benefit base on the most recent contract
date anniversary, and any subsequent withdrawals in that same contract year will
reduce your applicable benefit base on a pro rata basis.
The timing of your withdrawals and whether they exceed the 6% threshold
described above can have significant impact on your guaranteed minimum income
benefit or guaranteed minimum death benefit.
----------------------------------
Reduction on a dollar-for-dollar basis means that your current benefit will be
reduced by the dollar amount of the withdrawal. 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 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 death benefit was $40,000 before
the withdrawal, it would be reduced by $16,000 ($40,000 x .40) and your new
death benefit after the withdrawal would be $24,000 ($40,000 - $16,000). This
pro rata example assumes that the annual 6% threshold described above has
already been exceeded.
LOANS UNDER ROLLOVER TSA CONTRACTS
You may take loans from a Rollover TSA unless restricted by the employer who
provided the Rollover TSA funds. If you cannot take a loan, or cannot take a
loan without approval from the employer who provided the funds, we will have
this information in our records based on what you and the employer who provided
the funds told us when you purchased your contract. The employer must also tell
us whether special employer plan rules of the Employee Retirement Income
Security Act of 1974 ("ERISA") apply. We will not permit you to take a loan
while you are enrolled in our "automatic required minimum distribution (RMD)
service."
You should read the terms and conditions on our loan request form carefully
before taking out a loan. Under Rollover TSA contracts subject to ERISA, you may
only take a loan with the written consent of your spouse. Your contract contains
further details of the loan provision. Also, see "Tax information" later in this
Prospectus for general rules applicable to loans.
We will permit you to have only one loan outstanding at a time. The minimum loan
amount is $1,000. The maximum amount is $50,000 or, if less, 50% of your account
value, subject to any limits under the federal income tax rules. The term of a
loan is five years. However, if you use the loan to acquire your primary
residence, the term is 10 years. The term may not extend beyond the earliest of:
(1) the date annuity payments begin,
(2) the date the contract terminates, and
(3) the date a death benefit is paid (the outstanding loan will be deducted
from the death benefit amount).
A loan request under your Rollover TSA contract will be processed on the first
business day of the month following the date on which the properly completed
loan request form is received. Interest will accrue daily on your outstanding
loan at a rate we set. The loan interest rate will be equal to the Moody's
Corporate Bond Yield Averages for Baa bonds for the calendar month ending two
months before the first day of the calendar quarter in which the rate is
determined.
Accessing your money 35
LOAN RESERVE ACCOUNT. On the date your loan is processed, we will transfer the
amount of your loan to the loan reserve account. Unless you specify otherwise,
we will subtract your loan on a pro rata basis from your value in the variable
investment options and the guaranteed interest option. If these amounts are
insufficient, any additional amount of the loan will be subtracted from the
fixed maturity options in order of the earliest maturity date(s) first. A market
value adjustment may apply.
We will credit interest to the amount in the loan reserve account at a rate of
2% lower than the loan interest rate that applies for the time your loan is
outstanding. On each contract date anniversary after the date the loan is
processed, we will transfer the amount of interest earned in the loan reserve
account to the variable investment options on a pro rata basis. When you make a
loan repayment, unless you specify otherwise, we will transfer the dollar amount
of the loan repaid from the loan reserve account to the investment options
according to the allocation percentages we have on our records.
SURRENDERING 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. (Rollover
TSA contracts may have restrictions.) 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. For
the tax consequences of surrenders, see "Tax information" later in this
Prospectus and in the SAI.
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, payment of a death benefit, payment of any amount you withdraw
and, upon surrender, 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 value in the guaranteed interest
option and 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 10 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
Equitable Accumulator(R) Select(SM) offers you several choices of annuity payout
options. Some enable you to receive fixed annuity payments, which can be either
level or increasing, 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. In addition, if you are exercising your guaranteed minimum
income benefit under the Living Benefit, your choice of payout options are those
that are available under the Living Benefit (see "Our Living Benefit option" in
"Contract features and benefits" earlier in this Prospectus).
- --------------------------------------------------------------------------------
Fixed annuity payout options Life annuity
Life annuity with period certain
Life annuity with refund certain
Period certain annuity
- --------------------------------------------------------------------------------
Variable Immediate Annuity Life annuity
payout options (not available in New York)
Life annuity with period certain
- --------------------------------------------------------------------------------
Income Manager payout options Life annuity with period certain
(available for annuitants age 83 Period certain annuity
or less at contract issue)
- --------------------------------------------------------------------------------
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. 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.
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 guaranteed 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 pay-
36 Accessing your money
ment 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 OPTIONS
With fixed annuities, we guarantee fixed annuity payments will be based either
on the tables of guaranteed annuity purchase factors in your contract or on our
then current annuity purchase factors, 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 Immediate Annuities may be funded through your choice of available
variable investment options investing in portfolios of EQ/Advisors Trust and AXA
Premier VIP Trust. The contract also offers a fixed income annuity payout option
that can be elected in combination with the variable annuity payout option. The
amount of each variable income 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.
INCOME MANAGER PAYOUT OPTIONS
The Income Manager payout annuity contracts differ from the other payout annuity
contracts. The other payout annuity contracts may provide higher or lower income
levels, but do not have all the features of the Income Manager payout annuity
contract. You may request an illustration of the Income Manager payout annuity
contract from your financial professional. Income Manager payout options are
described in a separate prospectus that is available from your financial
professional. Before you select an Income Manager payout option, you should read
the prospectus which contains important information that you should know.
Both NQ and IRA Income Manager payout options provide guaranteed level payments.
The Income Manager (life annuity with period certain) also provides guaranteed
increasing payments (NQ contracts only).
For Rollover TSA contracts, if you want to elect an Income Manager payout
option, we will first roll over amounts in such contract to a Rollover IRA
contract with the plan participant as owner.
You may choose to apply the account value of your Equitable Accumulator(R)
Select(SM) contract to an Income Manager payout annuity.
Depending upon your circumstances, an Income Manager contract may be purchased
on a tax-free basis. Please consult your tax adviser. The Income Manager payout
options are not available in all states.
If you purchase an Income Manager contract in connection with the exercise of
the Living Benefit option, different payout options may apply as well as other
various differences. See "Our Living Benefit Option" in "Contract features and
benefits" earlier in this Prospectus as well as the Income Manager Prospectus.
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 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.
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. The contract owner and annuitant must
meet the issue age and payment requirements.
You can choose the date annuity payments begin but it may not be earlier than
thirteen months from the Equitable Accumulator(R) Select(SM) contract date.
Except with respect to the Income Manager annuity payout options, where payments
are made on the 15th day of each month, 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 annuity maturity date described below.
The amount of the annuity payments will depend on the amount applied to purchase
the annuity and the applicable annuity purchase factors, discussed earlier.
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.
ANNUITY MATURITY DATE
Your contract has a maturity date by which you must either take a lump sum
withdrawal or select an annuity payout option. The maturity date is generally
the contract date anniversary that follows the annuitant's 95th birthday.
Accessing your money 37
For contracts issued in Pennsylvania and New York, the maturity date is related
to the contract issue date, as follows:
- -------------------------------------------------------------
New York Pennsylvania
- -------------------------------------------------------------
Maximum Maximum
annuitization annuitization
Issue age age Issue age age
- -------------------------------------------------------------
0-80 90 0-75 85
81 91 76 86
82 92 77 87
83 93 78-80 88
84 94 81-85 90
85 95
- -------------------------------------------------------------
Before the last day 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: (i) transfers (if permitted in the
future) among the variable investment options if a Variable Immediate Annuity
payout option is selected; and (ii) withdrawals or contract surrender (subject
to a market value adjustment) if an Income Manager payout option is chosen.
38 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 An administrative charge
o A distribution charge
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 each contract date anniversary -- an annual administrative charge, if
applicable.
o On each contract date anniversary -- a charge if you elect a death benefit
(other than the Standard death benefit).
o On each contract date anniversary -- a charge for the Living Benefit, if you
elect this optional 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.
o On each contract date anniversary -- a charge for Protection Plus, if you
elect this optional benefit.
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.
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 Standard
guaranteed minimum death benefit. The daily charge is equivalent to an annual
rate of 1.10% 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 income 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. Lastly, we
assume a mortality risk to the extent that at the time of death, the guaranteed
minimum 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.
ADMINISTRATIVE CHARGE
We deduct a daily charge from the net assets in each variable investment option
to compensate us for administrative expenses under the contracts. The daily
charge is equivalent to an annual rate of 0.25% of the net assets in each
variable investment option.
DISTRIBUTION CHARGE
We deduct a daily charge from the net assets in each variable investment option
to compensate us for a portion of our sales expenses under the contracts. The
daily charge is equivalent to an annual rate of 0.35% of the net assets in each
variable investment option.
ANNUAL ADMINISTRATIVE CHARGE
We deduct an administrative charge from your account value on each contract date
anniversary. We deduct the charge if your account value on the last business day
of the contract year is less than $50,000. If your account value on such date is
$50,000 or more, we do not deduct the charge. During the first two contract
years, the charge is equal to $30 or, if less, 2% of your account value. The
charge is $30 for contract years three and later.
We will deduct this charge from your value in the variable investment options
and the guaranteed interest option (if permitted in your state) on a pro rata
basis. If those amounts are insufficient, we will deduct all or a portion of the
charge from the fixed maturity options in order of the earliest maturity date(s)
first. A market value adjustment may apply. If you surrender your contract
during the contract year, we will deduct a pro rata portion of the charge.
If your account value is insufficient to pay this charge, your contract will
terminate without value and you will lose any applicable guaranteed benefits.
Please see "Termination of your contract" in "Determining your contract value"
earlier in this Prospectus.
GUARANTEED MINIMUM DEATH BENEFIT CHARGE
Annual ratchet to age 85. If you elect the Annual ratchet to age 85 enhanced
death benefit, we deduct a charge annually from your account value on each
contract date anniversary for which it is in effect. The charge is equal to
0.30% of the Annual ratchet to age 85 benefit base.
6% Roll up to age 85. If you elect the 6% Roll up to age 85 enhanced death
benefit, we deduct a charge annually from your account value on each contract
date anniversary for which it is in effect. The charge is equal to 0.45% of the
6% Roll up to age 85 benefit base.
Greater of 6% Roll up to age 85 or Annual ratchet to age 85. If you elect this
enhanced death benefit, we deduct a charge annually from your account value on
each contract date anniversary for which it is in effect. The charge is equal to
0.60% of the greater of the 6% Roll up to age 85 or the Annual ratchet to age 85
benefit base.
Charges and expenses 39
We will deduct this charge from your value in the variable investment options
and the guaranteed interest option on a pro-rata basis. If those amounts are
insufficient, we will deduct all or a portion of the charge from the fixed
maturity options in order of the earliest maturity date(s) first. A market value
adjustment may apply.
If your account value is insufficient to pay this charge, your contract will
terminate without value and you will lose any applicable guaranteed benefits.
Please see "Termination of your contract" in "Determining your contract value"
earlier in this Prospectus.
There is no additional charge for the Standard death benefit.
LIVING BENEFIT CHARGE
If you elect the Living Benefit, we deduct a charge annually from your account
value on each contract date anniversary until such time as you exercise the
guaranteed minimum income benefit, elect another annuity payout option, or the
contract date anniversary after the annuitant reaches 85, whichever occurs
first. The charge is equal to 0.60% of the applicable benefit base in effect on
the contract date anniversary.
We will deduct this charge from your value in the variable investment options
and the guaranteed interest option on a pro rata basis. If those amounts are
insufficient, we will deduct all or a portion of the charge from the fixed
maturity options in order of the earliest maturity date(s) first. A market value
adjustment may apply.
If your account value is insufficient to pay this charge, your contract will
terminate without value and you will lose any applicable guaranteed benefits.
Please see "Termination of your contract" in "Determining your contract value"
earlier in this Prospectus.
PROTECTION PLUS CHARGE
If you elect Protection Plus, we deduct a charge annually from your account
value on each contract date anniversary for which it is in effect. The charge is
equal to 0.35% of the account value on each contract date anniversary. We will
deduct this charge from your value in the variable investment options and the
guaranteed interest option on a pro rata basis. If those amounts are
insufficient, we will deduct all or a portion of the charge from the fixed
maturity options in the order of the earliest maturity date(s) first. A market
value adjustment may apply.
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 jurisdiction and ranges from 0% to 3.5%.
VARIABLE IMMEDIATE ANNUITY PAYOUT OPTION ADMINISTRATIVE FEE
We deduct a fee of $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 Management fees ranging from 0.10% to 1.50%.
o 12b-1 fees of either 0.25% or 0.35%.
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 prospectuses for the Trusts.
GROUP OR SPONSORED ARRANGEMENTS
For certain group or sponsored arrangements, we may reduce the mortality and
expense risks charge or change the minimum initial contribution requirements. We
also may change the guaranteed minimum income benefit or the guaranteed minimum
death benefit, or offer variable investment options that invest in shares of the
Trusts 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
Rollover IRA and Roth Conversion 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,
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.
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
40 Charges and expenses
commissions in connection with the sale of the contracts. We will not permit a
reduction or elimination of charges where it would be unfairly discriminatory.
Charges and expenses 41
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 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. You may be
limited as to the beneficiary you can designate in a Rollover TSA contract.
Where an NQ contract is owned by a minor pursuant to the Uniform Gift to Minors
Act or the Uniform Transfers to Minors Act, the beneficiary must be the estate
of the annuitant. Where an IRA contract is owned in a custodial individual
retirement account, the custodian must be the beneficiary so that the custodian
can reinvest or distribute the death benefit as the beneficiary of the account
desires.
The death benefit is equal to your account value (without adjustment for any
otherwise applicable negative market value adjustment) or, if greater, the
applicable guaranteed minimum death benefit. We determine the amount of the
death benefit (other than the applicable guaranteed minimum death benefit) and
any amount applicable under the Protection Plus feature, 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.
The amount of the applicable guaranteed minimum death benefit will be such
guaranteed minimum death benefit as of the date of the annuitant's death,
adjusted for any subsequent withdrawals. The death benefit will be less a
deduction for any outstanding loan plus accrued interest on the date that the
death benefit payment is made (applies to Rollover TSA only).
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, a
surviving spouse of the deceased owner/annuitant can choose to be treated as the
successor owner/annuitant and continue the contract. Only a spouse who is the
sole primary beneficiary can be a successor owner/annuitant. The successor
owner/annuitant feature is only available under NQ and individually owned IRA
(other than Inherited IRAs) contracts. See "Inherited IRA beneficiary
continuation contract" in "Contracts features and benefits," earlier in this
Prospectus.
For NQ and 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.
When the owner is not the annuitant under an NQ contract and the owner dies
before annuity payments begin, the beneficiary named to receive this death
benefit upon the annuitant's death will become the successor owner. If you do
not want this beneficiary 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. The surviving
owner automatically takes the place of any other beneficiary designation.
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. An eligible successor owner,
including a surviving joint owner after the first owner dies, may elect the
beneficiary continuation option for NQ contracts discussed in "Beneficiary
continuation option" below.
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.
SUCCESSOR OWNER AND ANNUITANT
If you are both the contract owner and the annuitant, and your spouse is the
sole primary beneficiary or the joint owner, then your spouse may elect to
receive the death benefit or continue the contract as successor owner/annuitant.
42 Payment of death benefit
If your surviving spouse decides to continue the contract, then as of the date
we receive satisfactory proof of your death, any required instructions,
information and forms necessary to effect the successor owner/annuitant feature,
we will increase the account value to equal your elected guaranteed minimum
death benefit as of the date of your death if such death benefit is greater than
such account value, plus any amount applicable under the Protection Plus feature
and adjusted for any subsequent withdrawals. 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. In determining whether your
applicable guaranteed minimum death benefit option will continue to grow, we
will use your surviving spouse's age (as of the date we receive satisfactory
proof of your death, any required instructions and the information and forms
necessary to effect the successor owner/annuitant feature).
Where an IRA contract is owned in a custodial individual retirement account, and
your spouse is the sole beneficiary of the account, the custodian may request
that the spouse be substituted as annuitant after your death.
BENEFICIARY CONTINUATION OPTION
This feature permits a designated individual, on the contract owner's death, to
maintain a contract in the deceased contract owner's 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, Roth IRA and NQ contracts, subject to state availability. Please speak with
your financial professional for further information.
BENEFICIARY CONTINUATION OPTION FOR TRADITIONAL IRA AND ROTH IRA CONTRACTS ONLY.
The beneficiary continuation option must be elected by September 30th of the
year following the calendar year of your death and before any other inconsistent
election is made. Beneficiaries who do not make a timely election will not be
eligible for this 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 applicable death benefit if such death
benefit is greater than such account value, plus any amount applicable under the
Protection Plus feature, adjusted for any subsequent withdrawals. Where an IRA
contract is owned in a custodial individual retirement account, the custodian
may reinvest the death benefit in an individual retirement annuity contract,
using the account beneficiary as the annuitant. Please speak with your financial
professional for further information.
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. For sole
spousal beneficiaries, payments may begin by December 31st of the calendar year
in which you would have reached age 70-1/2, if such time is later. For
traditional IRA contracts only, if you die before your Required Beginning Date
for Required Minimum Distributions, as discussed in the Statement of Additional
Information, the beneficiary may choose the "5-year rule" option instead of
annual payments over life expectancy. The 5-year rule is always available to
beneficiaries under Roth IRA contracts. If the beneficiary chooses this option,
the beneficiary may take withdrawals as desired, but the entire account value
must be fully withdrawn by December 31st of the calendar year which contains the
fifth anniversary of your death.
Under the beneficiary continuation option for IRA and Roth IRA contracts:
o The contract continues in your name for the benefit of your beneficiary.
o This feature is only available if the beneficiary is an individual. Certain
trusts with only individual beneficiaries will be treated as individuals
for this purpose.
o If there is more than one beneficiary, each beneficiary's share will be
separately accounted for. It will be distributed over the beneficiary's own
life expectancy, if payments over life expectancy are chosen.
o The minimum amount that is required in order to elect the beneficiary
continuation option is $5,000 for each beneficiary.
o The beneficiary may make transfers among the investment options but no
additional contributions will be permitted.
o If you had elected the guaranteed minimum income benefit or an optional
enhanced death benefit under the contract, they will no longer be in effect
and charges for such benefits will stop. Also, any minimum death benefit
feature will no longer be in effect.
o The beneficiary may choose at any time to withdraw all or a portion of the
account value.
o 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 required 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.
BENEFICIARY CONTINUATION OPTION FOR NQ CONTRACTS ONLY. This feature, also known
as the Inherited annuity, may only be elected when the NQ contract owner dies
before the annuity commencement date, whether or not the owner and the annuitant
are the same person. If the owner and annuitant are different and the owner dies
before the annuitant, for purposes of this discussion, "beneficiary" refers to
the successor owner. For a discussion of successor owner, see "When an NQ
contract owner dies before the annuitant" earlier in this section. This feature
must be elected within 9 months following the date of your death and before any
other inconsistent election is made. Beneficiaries who do not make a timely
election will not be eligible for this option.
Generally, payments will be made once a year to the beneficiary over the
beneficiary's life expectancy, determined on a term certain basis
Payment of death benefit 43
and in the year payments start. These payments must begin no later than one year
after the date of your death and are referred to as "scheduled payments." The
beneficiary may choose the "5-year rule" instead of scheduled payments over life
expectancy. If the beneficiary chooses the 5-year rule, there will be no
scheduled payments. Under the 5-year rule, the beneficiary may take withdrawals
as desired, but the entire account value must be fully withdrawn by the fifth
anniversary of your death.
Under the beneficiary continuation option for NQ contracts (regardless of
whether the owner and annuitant are the same person):
o This feature is only available if the beneficiary is an individual. It is
not available for any entity such as a trust, even if all of the
beneficiaries of the trust are individuals.
o The contract continues in your name for the benefit of your beneficiary.
o If there is more than one beneficiary, each beneficiary's share will be
separately accounted for. It will be distributed over the respective
beneficiary's own life expectancy, if scheduled payments are chosen.
o The minimum amount that is required in order to elect the beneficiary
continuation option is $5,000 for each beneficiary.
o The beneficiary may make transfers among the investment options but no
additional contributions will be permitted.
o If you had elected guaranteed minimum income benefit or an optional
enhanced death benefit under the contract, they will no longer be in effect
and charges for such benefits will stop. Also, any minimum death benefit
feature will no longer be in effect.
o If the beneficiary chooses the "5-year rule," withdrawals may be made at
any time. If the beneficiary instead chooses scheduled payments, the
beneficiary must also choose between two potential withdrawal options at
the time of election. If the beneficiary chooses "Withdrawal Option 1",
the beneficiary cannot later withdraw funds in addition to the scheduled
payments the beneficiary is receiving; "Withdrawal Option 1" permits total
surrender only. "Withdrawal Option 2" permits the beneficiary to take
withdrawals, in addition to scheduled payments, at any time. However, the
scheduled payments under "Withdrawal Option 1" are afforded favorable tax
treatment as "annuity payments." See "Taxation of nonqualified annuities"
in "Tax Information" later in this Prospectus.
o Any partial withdrawals must be at least $300.
o Your beneficiary will have the right to name a beneficiary to receive any
remaining interest in the contract on the beneficiary's death.
o Upon the death of your beneficiary, the beneficiary he or she has named has
the option to either continue taking scheduled payments based on the
remaining life expectancy of the deceased beneficiary (if scheduled
payments were chosen) or to receive any remaining interest in the contract
in a lump sum. We will pay any remaining interest in the contract in a
lump sum if your beneficiary elects the 5-year rule. 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.
If you are both the owner and annuitant:
o 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 annuity account value to
equal the applicable death benefit if such death benefit is greater than
such account value, plus any amount applicable under the Protection Plus
feature, adjusted for any subsequent withdrawals.
If the owner and annuitant are not the same person:
o If the beneficiary continuation option is elected, the beneficiary
automatically becomes the new annuitant of the contract, replacing the
existing annuitant.
o The annuity account value will not be reset to the death benefit amount.
If a contract is jointly owned:
o The surviving owner supersedes any other named beneficiary and may elect
the beneficiary continuation option.
o If the deceased joint owner was also the annuitant, see "If you are both
the owner and annuitant" earlier in this section.
o If the deceased joint owner was not the annuitant, see "If the owner and
annuitant are not the same person" earlier in this section.
44 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 Equitable Accumulator(R) Select(SM) contracts owned by
United States individual taxpayers. The tax rules can differ, depending on the
type of contract, whether NQ, traditional IRA, Roth IRA or TSA. 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 without
notice. 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
or values under the contract, or payments under the contract, for example, the
amounts due to beneficiaries, may be subject to federal or state gift, estate,
or inheritance 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 which can be made to all types of tax-favored retirement plans. In
addition to increasing the amounts which 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 adviser 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") and Code Section 403(b) Arrangements
("TSAs"), respectively: an IRA or 403(b) annuity contract such as this one, or
an IRA or 403(b)(7) 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. More information on IRAs and TSAs
is provided in the SAI. 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 Accumulator(R) Select(SM)'s 12 Month Dollar Cost
Averaging, choice of death benefits, the living benefit guaranteed minimum
income benefit selection of investment funds, guaranteed interest option, fixed
maturity options and its 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 arrangements. You should be aware that cost may vary
depending on the features and benefits made available and the charges and
expenses of the investment options or funds that you elect. Although certain
provisions of the Temporary Regulations on required minimum distributions
concerning the actuarial value of additional contract benefits, which could have
increased the amount required to be distributed from annuity contracts funding
qualified plans, TSAs and IRAs have currently been suspended, these or similar
provisions may apply in future years. You may want to discuss with your tax
adviser the potential implication of these Regulations before you purchase this
annuity contract or purchase additional features under this annuity contract.
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 the 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.
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.
Tax information 45
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 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.
PROTECTION PLUS FEATURE
In order to enhance the amount of the death benefit to be paid at the
annuitant's death, you may purchase a Protection Plus rider for your NQ
contract. Although we regard this benefit as an investment protection feature
which is part of the contract and which should have no adverse tax effect, it is
possible that the IRS could take a contrary position or assert that the
Protection Plus rider is not part of the contract. In such a case the charges
for the Protection Plus rider could be treated for federal income tax purposes
as a partial withdrawal from the contract. If this were so, such a deemed
withdrawal could be taxable, and for contract owners under age 59-1/2, also
subject to a tax penalty. Were the IRS to take this position, Equitable would
take all reasonable steps to attempt to avoid this result, which could include
amending the contract (with appropriate notice to you).
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
Equitable Accumulator(R) Select(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 the contract, of the
source contract carries over to the Equitable Accumulator(R) Select(SM) NQ
contract.
An owner may 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 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.
BENEFICIARY CONTINUATION OPTION
We have received a private letter ruling from the IRS regarding certain tax
consequences of scheduled payments under the beneficiary continuation option for
NQ contracts. See the discussion "Beneficiary continuation option for NQ
Contracts only" in "Payment of death benefit" earlier in this Prospectus. Among
other things, the IRS rules that:
o scheduled payments under the beneficiary continuation option for NQ
contracts satisfy the death of owner rules of Section 72(s)(2) of the Code,
regardless of whether the beneficiary elects Withdrawal Option 1 or
Withdrawal Option 2;
o scheduled payments, any additional withdrawals under Withdrawal Option 2, or
contract surrenders under Withdrawal Option 1 will only be taxable to the
beneficiary when amounts are actually paid, regardless of the Withdrawal
Option selected by the beneficiary;
o a beneficiary who irrevocably elects scheduled payments with Withdrawal
Option 1 will receive "excludable amount" tax treatment on scheduled
payments. See "Annuity payments" earlier in this section. If the beneficiary
elects to surrender the contract before all scheduled payments are paid, the
amount received upon surrender is a non-annuity payment taxable to the
extent it exceeds any remaining investment in the contract.
The ruling specifically does not address the taxation of any payments received
by a beneficiary electing Withdrawal Option 2 (whether scheduled payments or any
withdrawal that might be taken). There is no assurance that we will receive any
further rulings addressing the tax consequences of payments under Withdrawal
Option 2. Before electing the beneficiary continuation option feature, the
individuals you designate as beneficiary or successor owner should discuss with
their tax advisers the consequences of such elections.
46 Tax information
The tax treatment of a withdrawal after the death of the owner taken as a single
sum or taken as withdrawals under the 5-year rule is generally the same as the
tax treatment of a withdrawal from or surrender of 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, in accordance with IRS formulas.
INVESTOR CONTROL ISSUES
Under certain circumstances, the IRS has stated that you could be treated as the
owner (for tax purposes) of the assets of Separate Accounts 45 and 49. If you
were treated as the owner, you would be taxable on income and gains attributable
to the shares of the underlying portfolios.
The circumstances that would lead to this tax treatment would be that, in the
opinion of the IRS, you could control the underlying investment of Separate
Accounts 45 and 49. Recently, the IRS has said that the owners of variable
annuities will not be treated as owning the separate account assets provided the
underlying portfolios are restricted to variable life and annuity assets. The
variable annuity owners must have the right only to choose among the portfolios,
and must have no right to direct the particular investment decisions within the
portfolios.
Although we believe that, under current IRS guidance, you would not be treated
as the owner of the assets of Separate Accounts 45 and 49, there are some issues
that remain unclear. For example, the IRS has not issued any guidance as to
whether having a larger number of portfolios available, or an unlimited right to
transfer among them, could cause you to be treated as the owner. We do not know
whether the IRS will ever provide such guidance or whether such guidance, if
unfavorable, would apply retroactively to your contract. Furthermore, the IRS
could reverse its current guidance at any time. We reserve the right to modify
your contract as necessary to prevent you from being treated as the owner of the
assets of Separate Accounts 45 and 49.
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 trustee or custodian holds the
assets for the benefit of the IRA owner. The assets funding the account
typically include mutual funds and/or individual stocks and/or 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; and
o Roth IRAs 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 (http:// www.irs.gov).
Equitable Life designs its IRA contracts to qualify as individual retirement
annuities under Section 408(b) of the Internal Revenue Code. You may purchase
the contract as a traditional IRA ("Rollover IRA") or Roth IRA ("Roth Conversion
IRA"). We also offer the Inherited IRA for payment of post-death required
minimum distributions in traditional IRA and Roth IRA. The SAI contains the
information that the IRS requires you to have before you purchase an IRA. The
disclosure generally assumes direct ownership of the individual retirement
annuity contract. For contracts owned in a custodial individual retirement
account, the disclosure will apply only if you terminate your account or
transfer ownership of the contract to yourself.
We have received an opinion letter from the IRS approving the respective forms
of the Equitable Accumulator(R) traditional and Roth IRA contracts, as amended
to reflect recent tax law changes, 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 contracts submitted for IRS approval do not include every
feature possibly available under the Equitable Accumulator(R) traditional and
Roth IRA contracts.
The Inherited IRA beneficiary continuation contract has not been submitted to
the IRS for approval as to form for use as a traditional IRA or Roth IRA.
Equitable intends to submit both traditional and Roth IRA
Tax information 47
versions of the contract for formal approval, respectively. However, it is not
clear whether and when such approval may be received.
PROTECTION PLUS(SM) FEATURE
The Protection Plus feature is offered for IRA contracts, subject to state and
contract availability. We have received IRS opinion letters that the contract
with a Protection Plus feature qualifies 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 contracts submitted for IRS approval do not
include every feature possibly available under the Equitable Accumulator(R)
Select(SM) traditional and Roth IRA contracts. You should discuss with your tax
adviser whether you should consider purchasing an Accumulator(R) Select(SM) IRA
or Accumulator(R) Select(SM) Roth IRA with the optional Protection Plus feature.
CONTRIBUTIONS
Individuals may make three different types of contributions to an 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 IRAs of the same type
("direct transfers").
In addition, an individual may make a taxable rollover contribution from a
traditional IRA to a Roth IRA ("conversion" contributions).
Contributions to all types of IRAs are compensation-based. They are either made
from your current compensation or have a connection with past compensation (for
example, rollover contributions from an eligible retirement plan that you had
with an employer related to past compensation). Under certain circumstances,
your nonworking spouse, former spouse or surviving spouse may contribute to an
IRA. You can make regular contributions for any year to a traditional IRA within
federal tax law limits up until the calendar year you reach age 70-1/2. Regular
contributions for any year to a Roth IRA can be made at any time during your
life, subject to federal tax law limits.
The amount of contributions you may make to an IRA for any year and whether such
contributions are eligible for special tax treatment (for example, deductibility
from income or a special credit) may vary, depending on your income, age and
whether you participate in an employer-sponsored retirement plan. Roth IRA
contributions are not tax deductible. The maximum regular contribution that can
be made to all of your IRAs (whether traditional or Roth) for the taxable year
for which the contribution is made is $3,000 for 2004 and $4,000 for 2005. The
maximum regular contribution is increased to $3,500 for 2004 and $4,500 for 2005
if you are at least age 50 at any time during the taxable year for which the
contribution is made.
Rollover and transfer contributions are not subject to dollar limits. Rollover
contributions may be made to a traditional IRA from "eligible retirement plans"
which include other traditional IRAs, qualified plans, TSAs and governmental
employer 457(b) plans. For Roth IRAs, rollover contributions may be made from
other Roth IRAs and traditional IRAs. The conversion of a traditional IRA to a
Roth IRA is taxable. Direct transfer contributions may only be made directly
from one traditional IRA to another or from one Roth IRA to another.
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 adviser 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.
A more complete discussion of contributions to traditional IRAs and Roth IRAs is
contained in the SAI.
WITHDRAWALS AND DISTRIBUTIONS
You can withdraw any or all of your funds from an IRA at any time; you do not
need to wait for a special event like retirement. Earnings in IRAs are not
subject to federal income tax until amounts are paid to you or your beneficiary.
Withdrawals from an IRA, surrender of an IRA, death benefits from an IRA and
annuity payments from an IRA may be fully or partially taxable. Withdrawals and
distributions from IRAs are taxable as ordinary income (not capital gain).
Payments from traditional IRAs and Roth IRAs are taxed differently. Payments
from traditional IRAs are generally fully taxable unless you have made
nondeductible regular contributions or rolled over after-tax contributions. In
any event, the issuer of the traditional IRA is entitled to report the
distribution as fully taxable and it is your responsibility to calculate the
taxable and tax-free portions of any traditional IRA payments on your own tax
returns.
Distributions from Roth IRAs generally receive return of contribution treatment
first under federal income tax calculation rules before any income is taxable.
Certain distributions from Roth IRAs may qualify for fully tax-free treatment.
These are distributions after you reach age 59-1/2, die, become disabled or meet
a qualified first-time home buyer tax rule. You also have to meet a five-year
aging period.
A distribution from a traditional IRA will not be taxable if it is rolled over
to an eligible retirement plan. A distribution from a Roth IRA will not be
taxable if it is rolled over to another Roth IRA.
Taxable withdrawals or distributions from IRAs may be subject to an additional
10% penalty tax if you are under age 59-1/2, unless an exception applies.
Traditional IRAs are subject to required minimum distribution rules which
require that amounts begin to be distributed in a prescribed manner from the IRA
after the owner reaches age 70-1/2. These rules also require distributions after
the owner's death. No distributions are required to be made from Roth IRAs until
after the Roth IRA owner's death, but then the required minimum distribution
rules apply.
48 Tax information
A more complete discussion of the tax aspects of withdrawals and distributions
from traditional IRAs and Roth IRAs is contained in the SAI.
TAX-SHELTERED ANNUITY CONTRACTS (TSAS)
GENERAL
This section of the prospectus covers some of the special tax rules that apply
to annuity contracts under Section 403(b) of the Internal Revenue Code (TSAs).
Generally there are two types of funding vehicles available for 403(b)
arrangements -- an annuity contract under Section 403(b)(1) of the Code or a
custodial account which invests only in mutual funds and which is treated as an
annuity contract under Section 403(b)(7) of which the Code. Both types of 403(b)
arrangements qualify for tax deferral.
PROTECTION PLUS FEATURE
The Protection Plus feature is offered for Rollover TSA contracts, subject to
state and contract availability. There is no assurance that the contract with
the Protection Plus feature meets the qualification requirements for TSAs. There
is a limit to the amount of life insurance benefits that TSAs may offer.
Although we view the optional Protection Plus benefit as an investment
protection feature which should have no adverse tax effect and not as a life
insurance benefit, it is possible that the IRS could take a contrary position
regarding tax qualification or assert that the Protection Plus rider is not a
permissible part of a TSA contract. If the IRS were to take the position that
the optional Protection Plus benefit is not part of the contract, in such a
case, the charges for the Protection Plus rider could be treated for federal
income tax purposes as a partial withdrawal from the contract. If this were so,
such a deemed withdrawal could affect the tax qualification of the TSA and could
be taxable. Were the IRS to take any adverse position, Equitable would take all
reasonable steps to attempt to avoid any adverse result, which would include
amending the contract (with appropriate notice to you). You should discuss with
your tax adviser whether you should consider purchasing an Accumulator(R)
Select(SM) Rollover TSA contract with the optional Protection Plus feature.
CONTRIBUTIONS TO TSAS
There are two ways you can make contributions to this Equitable Accumulator(R)
Select(SM) Rollover TSA contract:
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.
If you make a direct transfer, you must fill out our transfer form.
Contributions to TSAs are discussed in greater detail in the SAI.
ROLLOVER OR DIRECT TRANSFER CONTRIBUTIONS. You must establish your TSA with
funds that are directly transferred from another 403(b) arrangement or rolled
over from another 403(b) arrangement. You may make subsequent rollover
contributions to your Rollover TSA contract from these sources: qualified plans,
governmental employer 457(b) plans and traditional IRAs, as well as other TSAs
and 403(b) arrangements. All rollover contributions must be pre-tax funds only
with appropriate documentation satisfactory to us.
You should discuss with your tax adviser 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.
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 Equitable Accumulator(R) Select(SM) contract receiving the funds has
provisions at least as restrictive as the source contract.
Before you transfer funds to an Equitable Accumulator(R) Select(SM) Rollover TSA
contract, you may have to obtain your employer's authorization or demonstrate
that you do not need employer authorization.
DISTRIBUTIONS FROM 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. Your
employer will tell us this when you establish the TSA through a direct transfer.
You may also need spousal consent for certain transactions and payments.
WITHDRAWAL RESTRICTIONS. If this is a Revenue Ruling 90-24 direct transfer, we
will treat all amounts transferred to this contract and any future earnings on
the amount transferred as not eligible for withdrawal until one of the following
events happens:
o you are severed from employment with the employer which provided the funds
to purchase the TSA you are transferring to the Equitable Accumulator(R)
Select(SM) Rollover TSA; or
o you reach age 59-1/2; or
o you die; or
o you become disabled (special federal income tax definition); or
o you take a hardship withdrawal (special federal income tax definition).
The amount of funds subject to withdrawal restrictions may depend on the source
of the funds used to establish the Accumulator(R) Select(SM) TSA.
TAX TREATMENT OF DISTRIBUTIONS. Amounts held under TSAs are generally not
subject to federal income tax until benefits are distributed. Distributions
include withdrawals from your TSA contract and annuity payments from your TSA
contract. Death benefits paid to a beneficiary are also taxable distributions.
Unless an exception applies, amounts distributed from TSAs are includable in
gross income as ordinary
Tax information 49
income. Distributions from TSAs may be subject to 20% federal income tax
withholding. See "Federal and state income tax withholding and information
reporting" below. In addition, TSA distributions may be subject to additional
tax penalties.
If you have made after-tax contributions, you will have a tax basis in your TSA
contract, which will be recovered tax-free. Since we currently do not accept
after-tax funds, we do not track your investment in the contract, if any. We
will report all distributions from this Rollover TSA as fully taxable. It is
your responsibility to determine how much of the distribution is taxable.
A penalty tax of 10% of the taxable portion of a distribution applies to
distributions from a TSA before you reach age 59-1/2 unless an exception
applies.
Distributions from TSAs are discussed in greater detail in the SAI.
LOANS FROM TSAS
Loans are generally not treated as a taxable distribution. You may take loans
from a TSA unless restricted by the employer (for example, under an employer
plan subject to ERISA). If you cannot take a loan, or cannot take a loan without
approval from the employer who provided the funds, we will have this information
in our records based on what you and the employer who provided the TSA funds
told us when you purchased your contract.
Loans from TSAs are discussed in greater detail in the SAI.
TAX-DEFERRED ROLLOVERS AND DIRECT TRANSFERS
You may roll over any "eligible rollover distribution" from a TSA into another
eligible retirement plan (a qualified plan, a governmental employer 457(b) plan
(separate accounting required), another TSA or a traditional IRA) which agrees
to accept the rollover.
A spousal beneficiary may also roll over death benefits or certain
divorce-related payments.
Direct transfers of TSA funds from one TSA to another under Revenue Ruling 90-24
are not distributions.
Rollovers from TSAs are discussed in greater detail in the SAI.
REQUIRED MINIMUM DISTRIBUTIONS
TSAs are subject to required minimum distribution rules beginning at age 70-1/2
or separation from service, if later. These rules are discussed in greater
detail in the SAI.
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 $17,280 in periodic annuity payments in
2004, 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), 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 pay-
50 Tax information
ment amount in the case of traditional IRAs and Roth IRAs, where it is
reasonable to assume an amount is includable in gross income.
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 AND QUALIFIED PLAN DISTRIBUTIONS
Unless you have the distribution go directly to the new plan, eligible rollover
distributions from qualified plans and TSAs are subject to mandatory 20%
withholding. The plan administrator is responsible for withholding from
qualified plan distributions. An eligible rollover distribution from a TSA or a
qualified plan can be rolled over to another eligible retirement plan. All
distributions from a TSA 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 from service with the employer; 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
o substantially equal periodic payments made for a specified period of 10
years or more; or
o hardship withdrawals; 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.
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 No. 49 for taxes. We
do not now, but may in the future set up reserves for such taxes.
Tax information 51
8. More information
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ABOUT OUR SEPARATE ACCOUNT NO. 49
Each variable investment option is a subaccount of Separate Account No. 49. We
established Separate Account No. 49 in 1996 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 No. 49 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's operations are accounted
for without regard to Equitable Life's other operations.
The Separate Account 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 the Separate Account.
Each subaccount (variable investment option) within Separate Account No. 49
invests solely in class IB 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 the Separate Account 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 the Separate Account 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 the Separate Account or
a variable investment option directly);
(5) to deregister the Separate Account under the Investment Company Act of
1940;
(6) to restrict or eliminate any voting rights as to the Separate Account; 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
The Trusts 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.
The Trusts do not impose sales charges or "loads" for buying and selling its
shares. All dividends and other distributions on Trust shares are reinvested in
full. The Board of Trustees of the Trusts 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, and other aspects of its operations, appears in
the prospectuses for each Trust, 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.
FMO rates are determined daily. The rates in the table below are illustrative
only and will most likely differ from the rates applicable at time of purchase.
Current FMO rates can be obtained from your financial professional.
The rates to maturity for new allocations as of February 13, 2004 and the
related price per $100 of maturity value were as shown below.
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Fixed Maturity Options
with February 13th
Maturity Date of Rate to Maturity as of Price Per $100 of
Maturity Year February 13, 2004 Maturity Value
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2005 3.00%* $ 97.08
2006 3.00%* $ 94.25
2007 3.00%* $ 91.51
2008 3.00%* $ 88.84
2009 3.00%* $ 86.25
2010 3.00%* $ 83.73
2011 3.00%* $ 81.30
2012 3.30% $ 77.11
2013 3.53% $ 73.16
2014 3.73% $ 69.31
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* Since these rates to maturity are 3%, no amounts could have been allocated
to these options.
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.
52 More information
(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 for your FMO based on the
rate for a new FMO issued on the same date and having the same
maturity date as your FMO; if the same maturity date is not
available for new FMOs, we determine a rate that is between the
rates for new FMO maturities that immediately precede and
immediately follow your FMOs maturity date.
(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.
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. 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 option, the "current rate to maturity" will
be determined by using a widely-published Index. We reserve the right to add up
to 0.25% 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 expect the rates to maturity for the fixed maturity options 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 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
WIRE TRANSMITTALS AND ELECTRONIC APPLICATIONS
We accept initial and subsequent contributions sent by wire to our processing
office by agreement with certain broker-dealers. Such transmittals must be
accompanied by information we require to allocate your contribution. Wire orders
not accompanied by complete information may be retained as described under "How
you can make your contributions" in "Contract features and benefits" earlier in
this Prospectus.
Even if we accept the wire order and essential information, a contract generally
will not be issued until we receive and accept a properly completed application.
In certain cases we may issue a contract based on information provided through
certain broker-dealers with which we
More information 53
have established electronic facilities. In any such case, you must sign our
Acknowledgement of Receipt form.
Where we require a signed application, the above procedures do not apply and no
financial transactions will be permitted until we receive the signed application
and have issued the contract. Where we issue a contract based on information
provided through electronic facilities, we require an Acknowledgement of Receipt
form, and financial transactions are only permitted if you request them in
writing, sign the request and have it signature guaranteed, until we receive the
signed Acknowledgement of Receipt form. After your contract has been issued,
additional contributions may be transmitted by wire.
In general, the transaction date for electronic transmissions is the date on
which we receive at our regular processing office all required information and
the funds due for your contribution. We may also establish same-day electronic
processing facilities with a broker-dealer that has undertaken to pay
contribution amounts on behalf of its customers. In such cases, the transaction
date for properly processed orders is the business day on which the
broker-dealer inputs all required information into its electronic processing
system. You can contact us to find out more about such arrangements.
After your contract has been issued, additional contributions may be transmitted
by wire.
AUTOMATIC INVESTMENT PROGRAM -- FOR NQ CONTRACTS ONLY
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 contract on a monthly or quarterly basis. AIP is not available for
Rollover IRA, Roth Conversion IRA or Rollover TSA contracts.
The minimum amounts we will deduct are $100 monthly and $300 quarterly. AIP
additional contributions may be allocated to any of the variable investment
options and available fixed maturity options. 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.
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. on a business day, we will use the next business day.
o A loan request under your Rollover TSA contract will be processed on the
first business day of the month following the date on which the properly
completed loan request form is received.
o If your transaction is set to occur on the same day of the month as the
contract date and that date is the 29th, 30th or 31st of the month, then the
transaction will occur on the 1st day of the next month.
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 If we have entered into an agreement with your broker-dealer for automated
processing of contributions upon receipt of customer order, your
contribution will be considered received at the time your broker-dealer
receives your contribution and all information needed to process your
application, along with any required documents, and transmits your order to
us in accordance with our processing procedures. Such arrangements may apply
to initial contributions, subsequent contributions, or both, and may be
commenced or terminated at any time without prior notice. If required by
law, the "closing time" for such orders will be earlier than 4 p.m., Eastern
Time.
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 the guaranteed interest option will receive the
crediting rate in effect on that business day for the specified time period.
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
(unless a rate lock-in is applicable).
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 a fixed maturity option will be based on the rate to maturity
in effect for that fixed maturity option on the business day of the
transfer.
o Transfers to the guaranteed interest option will receive the crediting rate
in effect on that business day for the specified time period.
o For the interest sweep option, 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.
54 More information
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 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 NO. 49 VOTING RIGHTS
If actions relating to the Separate Account 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 No. 49, our ability to meet our obligations under the
contracts, or the distribution of the contracts.
ABOUT OUR INDEPENDENT AUDITORS
The consolidated financial statements of Equitable Life at December 31, 2003 and
2002, and for the three years ended December 31, 2003 incorporated in this
Prospectus by reference to the 2003 Annual Report on Form 10-K are incorporated
in reliance on the report of PricewaterhouseCoopers LLP, independent auditors,
given on the authority of said firm as experts in auditing and accounting.
FINANCIAL STATEMENTS
The financial statements of Separate Account No. 49, 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 1-800-789-7771.
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 Rollover IRA, Roth Conversion IRA or
Rollover TSA contract except by surrender to us. If your individual retirement
annuity contract is held in your custodial individual retirement account, you
may only assign or transfer ownership of such an IRA contract to yourself. Loans
are not available and you cannot assign Rollover IRA, Roth Conversion IRA or
Rollover TSA contracts as security for a loan or other obligation. If the
employer that provided the funds does not restrict them, loans are available
under a Rollover TSA contract.
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 Rollover IRA, Roth
Conversion IRA or Rollover TSA 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
The contracts are distributed by both AXA Advisors, LLC ("AXA Advisors") and AXA
Distributors, LLC ("AXA Distributors"). Both AXA Advisors and AXA Distributors
serve as principal underwriters of Separate Account No. 49. The offering of the
contracts is intended to be continuous.
More information 55
AXA Advisors (the successor to EQ Financial Consultants, Inc.), an affiliate of
Equitable Life, and AXA Distributors, an indirect wholly owned subsidiary of
Equitable Life, are registered with the SEC as broker dealers and are members of
the National Association of Securities Dealers, Inc. Their principal business
address is 1290 Avenue of the Americas, New York, NY 10104. Both broker-dealers
also act as distributors for other Equitable Life annuity products.
AXA Distributors is a successor by merger to all of the functions, rights and
obligations of Equitable Distributors, Inc. ("EDI"). Like AXA Distributors, EDI
was owned by Equitable Holdings, LLC.
The contracts are sold by financial professionals of AXA Advisors and its
affiliates and by financial professionals of AXA Distributors, as well as by
affiliated and unaffiliated broker-dealers who have entered into selling
agreements with AXA Distributors.
We pay broker-dealer sales compensation that will generally not exceed 2.0% of
the total contributions made under the contracts. Broker-dealers receiving sales
compensation will generally pay a portion of it to their financial
representatives as commissions related to the sales of the contracts. AXA
Distributors may also receive compensation and reimbursement for its marketing
services under the terms of its distribution agreement with Equitable Life, as
well as payments from portfolio advisers for sales meetings and/or seminar
sponsorships.
Equitable and/or AXA Distributors and/or AXA Advisors may use their respective
past profits or other resources to pay brokers and other financial
intermediaries for certain expenses they incur in providing services intended to
promote the sales of our products and/or shares in the underlying Trusts. These
services may include sales personnel training, prospectus review, marketing and
related services as well as support services that benefit contract owners.
Similarly, in an effort to promote the sale of our products, AXA Advisors may
provide its financial professionals and managerial personnel with a higher
percentage of sales commissions and/or more compensation for the sale of an
Equitable variable product than it would for the sale of another product. Such
practice is known as providing differential compensation. Other forms of
compensation financial professionals may receive include health and retirement
benefits, credits towards stock options awards and rewards for sales incentive
campaigns. In addition, managerial personnel may receive expense reimbursements,
marketing allowances and so called "overrides." In part for tax reasons, AXA
Advisors financial professionals and managerial personnel qualify for health and
retirement benefits based on their sales of our variable products.
These payments and differential compensation (together, "payments") can vary in
amount based on the applicable product and/or entity or individual involved. As
with any incentive, such payments may cause the recipient to show preference in
recommending the purchase or sale of our products. However, under applicable
rules of the National Association of Securities Dealers, Inc., AXA Advisors
financial professionals may only recommend to you products that they reasonably
believe are suitable for you based on facts that you have disclosed as to your
other security holdings, financial situation and needs. In making any
recommendation, financial professionals may nonetheless face conflicts of
interest because of the differences in compensation from one product category to
another, and because of differences in compensation between products in the same
category. Although Equitable takes all of its costs into account in establishing
the level of fees and expenses in our products, payments made will not result in
any separate charge to you under your contract.
56 More information
9. Incorporation of certain documents by reference
- --------------------------------------------------------------------------------
Equitable Life's annual report on Form 10-K for the year ended December 31,
2003, is considered to be a part of this Prospectus because they are
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 57
Appendix I: Condensed financial information
- --------------------------------------------------------------------------------
The unit values and number of units outstanding shown below are for contracts
offered under Separate Account 49 with the same daily asset charges of 1.70%.
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, 2003
- ------------------------------------------------------------------------------------------------------------------------------------
For the years ending December 31,
----------------------------------------------------
2003 2002
- ------------------------------------------------------------------------------------------------------------------------------------
AXA Aggressive Allocation
- ------------------------------------------------------------------------------------------------------------------------------------
Unit value $ 10.66 --
- ------------------------------------------------------------------------------------------------------------------------------------
Number of units outstanding (000's) 32 --
- ------------------------------------------------------------------------------------------------------------------------------------
AXA Conservative Allocation
- ------------------------------------------------------------------------------------------------------------------------------------
Unit value $ 10.30 --
- ------------------------------------------------------------------------------------------------------------------------------------
Number of units outstanding (000's) 1 --
- ------------------------------------------------------------------------------------------------------------------------------------
AXA Conservative-Plus Allocation
- ------------------------------------------------------------------------------------------------------------------------------------
Unit value $ 10.41 --
- ------------------------------------------------------------------------------------------------------------------------------------
Number of units outstanding (000's) 84 --
- ------------------------------------------------------------------------------------------------------------------------------------
AXA Moderate Allocation
- ------------------------------------------------------------------------------------------------------------------------------------
Unit value $ 38.70 $ 33.05
- ------------------------------------------------------------------------------------------------------------------------------------
Number of units outstanding (000's) 383 86
- ------------------------------------------------------------------------------------------------------------------------------------
AXA Moderate-Plus Allocation
- ------------------------------------------------------------------------------------------------------------------------------------
Unit value $ 10.66 --
- ------------------------------------------------------------------------------------------------------------------------------------
Number of units outstanding (000's) 46 --
- ------------------------------------------------------------------------------------------------------------------------------------
AXA Premier VIP Aggressive Equity
- ------------------------------------------------------------------------------------------------------------------------------------
Unit value $ 45.72 $ 33.82
- ------------------------------------------------------------------------------------------------------------------------------------
Number of units outstanding (000's) 10 4
- ------------------------------------------------------------------------------------------------------------------------------------
AXA Premier VIP Core Bond
- ------------------------------------------------------------------------------------------------------------------------------------
Unit value $ 10.84 $ 10.63
- ------------------------------------------------------------------------------------------------------------------------------------
Number of units outstanding (000's) 1,202 628
- ------------------------------------------------------------------------------------------------------------------------------------
AXA Premier VIP Health Care
- ------------------------------------------------------------------------------------------------------------------------------------
Unit value $ 9.91 $ 7.87
- ------------------------------------------------------------------------------------------------------------------------------------
Number of units outstanding (000's) 143 57
- ------------------------------------------------------------------------------------------------------------------------------------
AXA Premier VIP High Yield
- ------------------------------------------------------------------------------------------------------------------------------------
Unit value $ 25.87 $ 21.48
- ------------------------------------------------------------------------------------------------------------------------------------
Number of units outstanding (000's) 557 125
- ------------------------------------------------------------------------------------------------------------------------------------
AXA Premier VIP International Equity
- ------------------------------------------------------------------------------------------------------------------------------------
Unit value $ 10.27 $ 7.78
- ------------------------------------------------------------------------------------------------------------------------------------
Number of units outstanding (000's) 360 135
- ------------------------------------------------------------------------------------------------------------------------------------
AXA Premier VIP Large Cap Core Equity
- ------------------------------------------------------------------------------------------------------------------------------------
Unit value $ 9.59 $ 7.61
- ------------------------------------------------------------------------------------------------------------------------------------
Number of units outstanding (000's) 238 104
- ------------------------------------------------------------------------------------------------------------------------------------
AXA Premier VIP Large Cap Growth
- ------------------------------------------------------------------------------------------------------------------------------------
Unit value $ 8.68 $ 6.76
- ------------------------------------------------------------------------------------------------------------------------------------
Number of units outstanding (000's) 792 408
- ------------------------------------------------------------------------------------------------------------------------------------
AXA Premier VIP Large Cap Value
- ------------------------------------------------------------------------------------------------------------------------------------
Unit value $ 10.15 $ 7.88
- ------------------------------------------------------------------------------------------------------------------------------------
Number of units outstanding (000's) 726 316
- ------------------------------------------------------------------------------------------------------------------------------------
A-1 Appendix I: Condensed financial information
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, 2003 (CONTINUED)
- ------------------------------------------------------------------------------------------------------------------------------------
For the years ending December 31,
----------------------------------------------------
2003 2002
- ------------------------------------------------------------------------------------------------------------------------------------
AXA Premier VIP Small/Mid Cap Growth
- ------------------------------------------------------------------------------------------------------------------------------------
Unit value $ 8.52 $ 6.18
- ------------------------------------------------------------------------------------------------------------------------------------
Number of units outstanding (000's) 731 292
- ------------------------------------------------------------------------------------------------------------------------------------
AXA Premier VIP Small/Mid Cap Value
- ------------------------------------------------------------------------------------------------------------------------------------
Unit value $ 10.15 $ 7.34
- ------------------------------------------------------------------------------------------------------------------------------------
Number of units outstanding (000's) 560 206
- ------------------------------------------------------------------------------------------------------------------------------------
AXA Premier VIP Technology
- ------------------------------------------------------------------------------------------------------------------------------------
Unit value $ 8.74 $ 5.64
- ------------------------------------------------------------------------------------------------------------------------------------
Number of units outstanding (000's) 98 14
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/Alliance Common Stock
- ------------------------------------------------------------------------------------------------------------------------------------
Unit value $191.26 $ 130.09
- ------------------------------------------------------------------------------------------------------------------------------------
Number of units outstanding (000's) 29 9
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/Alliance Growth and Income
- ------------------------------------------------------------------------------------------------------------------------------------
Unit value $ 24.60 $ 19.19
- ------------------------------------------------------------------------------------------------------------------------------------
Number of units outstanding (000's) 371 133
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/Alliance Intermediate Government Securities
- ------------------------------------------------------------------------------------------------------------------------------------
Unit value $ 17.72 $ 17.65
- ------------------------------------------------------------------------------------------------------------------------------------
Number of units outstanding (000's) 458 259
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/Alliance International
- ------------------------------------------------------------------------------------------------------------------------------------
Unit value $ 11.05 $ 8.32
- ------------------------------------------------------------------------------------------------------------------------------------
Number of units outstanding (000's) 530 142
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/Alliance Premier Growth
- ------------------------------------------------------------------------------------------------------------------------------------
Unit value $ 5.78 $ 4.77
- ------------------------------------------------------------------------------------------------------------------------------------
Number of units outstanding (000's) 856 341
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/Alliance Quality Bond
- ------------------------------------------------------------------------------------------------------------------------------------
Unit value $ 14.97 $ 14.71
- ------------------------------------------------------------------------------------------------------------------------------------
Number of units outstanding (000's) 512 198
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/Alliance Small Cap Growth
- ------------------------------------------------------------------------------------------------------------------------------------
Unit value $ 13.34 $ 9.63
- ------------------------------------------------------------------------------------------------------------------------------------
Number of units outstanding (000's) 478 121
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/Bernstein Diversified Value
- ------------------------------------------------------------------------------------------------------------------------------------
Unit value $ 12.60 $ 9.96
- ------------------------------------------------------------------------------------------------------------------------------------
Number of units outstanding (000's) 1,481 530
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/Calvert Socially Responsible
- ------------------------------------------------------------------------------------------------------------------------------------
Unit value $ 7.82 $ 6.22
- ------------------------------------------------------------------------------------------------------------------------------------
Number of units outstanding (000's) 249 42
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/Capital Guardian International
- ------------------------------------------------------------------------------------------------------------------------------------
Unit value $ 9.38 $ 7.19
- ------------------------------------------------------------------------------------------------------------------------------------
Number of units outstanding (000's) 1,026 282
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/Capital Guardian Research
- ------------------------------------------------------------------------------------------------------------------------------------
Unit value $ 10.16 $ 7.86
- ------------------------------------------------------------------------------------------------------------------------------------
Number of units outstanding (000's) 776 200
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/Capital Guardian U. S. Equity
- ------------------------------------------------------------------------------------------------------------------------------------
Unit value $ 10.12 $ 7.55
- ------------------------------------------------------------------------------------------------------------------------------------
Number of units outstanding (000's) 1,222 345
- ------------------------------------------------------------------------------------------------------------------------------------
Appendix I: Condensed financial information A-2
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, 2003 (CONTINUED)
- ------------------------------------------------------------------------------------------------------------------------------------
For the years ending December 31,
----------------------------------------------------
2003 2002
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/Emerging Markets Equity
- ------------------------------------------------------------------------------------------------------------------------------------
Unit value $ 8.53 $ 5.56
- ------------------------------------------------------------------------------------------------------------------------------------
Number of units outstanding (000's) 457 69
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/Equity 500 Index
- ------------------------------------------------------------------------------------------------------------------------------------
Unit value $22.76 $ 18.11
- ------------------------------------------------------------------------------------------------------------------------------------
Number of units outstanding (000's) 1,074 399
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/Evergreen Omega
- ------------------------------------------------------------------------------------------------------------------------------------
Unit value $ 7.75 $ 5.70
- ------------------------------------------------------------------------------------------------------------------------------------
Number of units outstanding (000's) 218 32
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/FI Mid Cap
- ------------------------------------------------------------------------------------------------------------------------------------
Unit value $ 9.62 $ 6.81
- ------------------------------------------------------------------------------------------------------------------------------------
Number of units outstanding (000's) 883 285
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/FI Small/Mid Cap Value
- ------------------------------------------------------------------------------------------------------------------------------------
Unit value $12.10 $ 9.24
- ------------------------------------------------------------------------------------------------------------------------------------
Number of units outstanding (000's) 636 237
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/J.P. Morgan Core Bond
- ------------------------------------------------------------------------------------------------------------------------------------
Unit value $13.20 $ 12.99
- ------------------------------------------------------------------------------------------------------------------------------------
Number of units outstanding (000's) 1,175 441
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/Janus Large Cap Growth
- ------------------------------------------------------------------------------------------------------------------------------------
Unit value $ 5.38 $ 4.35
- ------------------------------------------------------------------------------------------------------------------------------------
Number of units outstanding (000's) 561 192
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/Lazard Small Cap Value
- ------------------------------------------------------------------------------------------------------------------------------------
Unit value $14.09 $ 10.43
- ------------------------------------------------------------------------------------------------------------------------------------
Number of units outstanding (000's) 641 270
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/Marsico Focus
- ------------------------------------------------------------------------------------------------------------------------------------
Unit value $12.69 $ 9.85
- ------------------------------------------------------------------------------------------------------------------------------------
Number of units outstanding (000's) 1,510 386
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/Mercury Basic Value Equity
- ------------------------------------------------------------------------------------------------------------------------------------
Unit value $17.87 $ 13.86
- ------------------------------------------------------------------------------------------------------------------------------------
Number of units outstanding (000's) 502 184
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/Mercury International Value
- ------------------------------------------------------------------------------------------------------------------------------------
Unit value $13.75 $ 10.92
- ------------------------------------------------------------------------------------------------------------------------------------
Number of units outstanding (000's) 441 161
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/MFS Emerging Growth Companies
- ------------------------------------------------------------------------------------------------------------------------------------
Unit value $11.60 $ 9.12
- ------------------------------------------------------------------------------------------------------------------------------------
Number of units outstanding (000's) 93 38
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/MFS Investors Trust
- ------------------------------------------------------------------------------------------------------------------------------------
Unit value $ 8.03 $ 6.69
- ------------------------------------------------------------------------------------------------------------------------------------
Number of units outstanding (000's) 598 229
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/Money Market
- ------------------------------------------------------------------------------------------------------------------------------------
Unit value $26.17 $ 26.47
- ------------------------------------------------------------------------------------------------------------------------------------
Number of units outstanding (000's) 434 630
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/Putnam Growth & Income Value
- ------------------------------------------------------------------------------------------------------------------------------------
Unit value $11.78 $ 9.45
- ------------------------------------------------------------------------------------------------------------------------------------
Number of units outstanding (000's) 307 128
- ------------------------------------------------------------------------------------------------------------------------------------
A-3 Appendix I: Condensed financial information
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, 2003 (CONTINUED)
- ------------------------------------------------------------------------------------------------------------------------------------
For the years ending December 31,
----------------------------------------------------
2003 2002
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/Putnam Voyager
- ------------------------------------------------------------------------------------------------------------------------------------
Unit value $ 11.20 $ 9.19
- ------------------------------------------------------------------------------------------------------------------------------------
Number of units outstanding (000's) 164 40
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/Small Company Index
- ------------------------------------------------------------------------------------------------------------------------------------
Unit value $ 12.10 $ 8.44
- ------------------------------------------------------------------------------------------------------------------------------------
Number of units outstanding (000's) 449 122
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/Technology
- ------------------------------------------------------------------------------------------------------------------------------------
Unit value $ 4.02 $ 2.85
- ------------------------------------------------------------------------------------------------------------------------------------
Number of units outstanding (000's) 258 77
- ------------------------------------------------------------------------------------------------------------------------------------
Laudus Rosenberg VIT Value Long/Short Equity
- ------------------------------------------------------------------------------------------------------------------------------------
Unit value $ 10.16 --
- ------------------------------------------------------------------------------------------------------------------------------------
Number of units outstanding (000's) 1 --
- ------------------------------------------------------------------------------------------------------------------------------------
U.S. Real Estate
- ------------------------------------------------------------------------------------------------------------------------------------
Unit value $ 10.99 --
- ------------------------------------------------------------------------------------------------------------------------------------
Number of units outstanding (000's) 1 --
- ------------------------------------------------------------------------------------------------------------------------------------
Appendix I: Condensed financial information A-4
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 was allocated on
February 13, 2004 to a fixed maturity option with a maturity date of February
13, 2013 (nine years later) at a hypothetical rate to maturity of 7.00%,
resulting in a maturity value of $183,914 on the maturity date. We further
assume that a withdrawal of $50,000 is made four years later on February 13,
2009.
- ------------------------------------------------------------------------------------------------------------------------------------
Hypothetical assumed rate to maturity on February 13, 2009
---------------------------------------------------------------------------
5.00% 9.00%
- ------------------------------------------------------------------------------------------------------------------------------------
As of February 13, 2009 (before withdrawal)
- ------------------------------------------------------------------------------------------------------------------------------------
(1) Market adjusted amount $144,082 $ 119,503
- ------------------------------------------------------------------------------------------------------------------------------------
(2) Fixed maturity amount $131,104 $ 131,104
- ------------------------------------------------------------------------------------------------------------------------------------
(3) Market value adjustment:
(1) - (2) $ 12,978 $ (11,601)
- ------------------------------------------------------------------------------------------------------------------------------------
On February 13, 2009 (after withdrawal)
- ------------------------------------------------------------------------------------------------------------------------------------
(4) Portion of market value adjustment associated with withdrawal:
(3) x [$50,000/(1)] $ 4,504 $ (4,854)
- ------------------------------------------------------------------------------------------------------------------------------------
(5) Reduction in fixed maturity amount: [$50,000 - (4)] $ 45,496 $ 54,854
- ------------------------------------------------------------------------------------------------------------------------------------
(6) Fixed maturity amount: (2) - (5) $ 85,608 $ 76,250
- ------------------------------------------------------------------------------------------------------------------------------------
(7) Maturity value $120,091 $ 106,965
- ------------------------------------------------------------------------------------------------------------------------------------
(8) Market adjusted amount of (7) $ 94,082 $ 69,503
- ------------------------------------------------------------------------------------------------------------------------------------
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 portion of 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 portion of a positive
market value adjustment is realized. The market value is computed differently if
you withdraw amounts on a date other than the anniversary of the establishment
of the fixed maturity option.
B-1 Appendix II: Market value adjustment example
Appendix III: Enhanced death benefit example
- --------------------------------------------------------------------------------
The death benefit under the contracts is equal to the account value or, if
greater, the enhanced death benefit if elected. The following illustrates the
enhanced death benefit calculation. Assuming $100,000 is allocated to the
variable investment options (with no allocation to the EQ/Alliance Intermediate
Government Securities, EQ/Money Market, the guaranteed interest option or the
fixed maturity options), no additional contributions, no transfers, no
withdrawals and no loans under a Rollover TSA contract, the enhanced death
benefit for an annuitant age 45 would be calculated as follows:
- ------------------------------------------------------------------------------------------
End of
contract 6% roll up to age 85 Annual ratchet to age 85
year Account value enhanced death benefit(1) enhanced death benefit
- ------------------------------------------------------------------------------------------
1 $105,000 $ 106,000(1) $ 105,000(3)
- ------------------------------------------------------------------------------------------
2 $115,500 $ 112,360(2) $ 115,500(3)
- ------------------------------------------------------------------------------------------
3 $129,360 $ 119,102(2) $ 129,360(3)
- ------------------------------------------------------------------------------------------
4 $103,488 $ 126,248(1) $ 129,360(4)
- ------------------------------------------------------------------------------------------
5 $113,837 $ 133,823(1) $ 129,360(4)
- ------------------------------------------------------------------------------------------
6 $127,497 $ 141,852(1) $ 129,360(4)
- ------------------------------------------------------------------------------------------
7 $127,497 $ 150,363(1) $ 129,360(4)
- ------------------------------------------------------------------------------------------
The account values for contract years 1 through 7 are based on hypothetical
rates of return of 5.00%, 10.00%, 12.00%, (20.00)%, 10.00%, 12.00% and 0.00%. 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.
6% ROLL-UP TO AGE 85
(1) At the end of contract year 1, and again at the end of contract years 4
through 7, the death benefit will be the enhanced death benefit.
(2) At the end of contract years 2 and 3, the death benefit will be the current
account value since it is higher than the current enhanced death benefit.
ANNUAL RATCHET TO AGE 85
(3) At the end of contract years 1 through 3, the enhanced death benefit is the
current account value.
(4) At the end of contract years 4 through 7, the enhanced death benefit is the
enhanced death benefit at the end of the prior year since it is equal to or
higher than the current account value.
GREATER OF 6% ROLL-UP TO AGE 85 OR THE ANNUAL RATCHET TO AGE 85
The enhanced death benefit under this option for each year shown would be the
greater of the amounts shown under the 6% roll-up to age 85 or the Annual
ratchet to age 85.
Appendix III: Enhanced death benefit example C-1
Appendix IV: Hypothetical illustrations
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ILLUSTRATION OF ACCOUNT VALUES, CASH VALUES AND CERTAIN GUARANTEED MINIMUM
BENEFITS
The following tables illustrate the changes in account value, cash value and the
values of the `greater of 6% Roll up to Age 85 or the Annual Ratchet to Age 85"
guaranteed minimum death benefit, the Protection Plus benefit and the guaranteed
minimum income benefit under certain hypothetical circumstances for an
Accumulator Select contract. The table illustrates the operation of a contract
based on a male, issue age 60, who makes a single$10,00 contribution and takes
no withdrawals. The amounts shown are for the beginning of each contract year
and assume that all of the account value is invested in portfolios that achieve
investment returns at constant gross annual rates of 0% and 6% (i.e., before any
investment management fees, 12b-1 fees or other expenses are deducted from the
underlying portfolio assets). After the deduction of the arithmetic average of
the investment management fees, 12b-1 fees and other expenses of all of the
underlying Portfolios (as described below), the corresponding net annual rates
of return would be (3.38)%, 2.62% for the Accumulator Select Contract, at the 0%
and 6% gross annual rates, respectively. These net annual rates of return
reflect the trust and separate account level charges but they do not reflect the
charges we deduct from your account value annually for the guaranteed minimum
death benefit, Protection Plus benefit and the Living Benefit features, as well
as the annual administrative charge. If the net annual rates of return did
reflect these charges, the net annual rates of return would be lower; however,
the values shown in the following tables reflect all contract charges. The
values shown under "Lifetime Annual Living Benefit" reflect the lifetime income
that would be guaranteed if the Living Benefit is selected at that contract
anniversary. An "N/A" in these columns indicates that the benefit is not
exercisable in that year. A "0" under any of the Death Benefit and/or "Lifetime
Annual Living Benefit" columns indicates that the contract has terminated due to
insufficient account value and, consequently, the guaranteed benefit has no
value.
With respect to fees and expenses deducted from assets of the underlying
portfolios, the amounts shown in all tables reflect (1) investment management
fees equivalent to an effective annual rate of 0.68%, and (2) an assumed average
asset charge for all other expenses of the underlying portfolios equivalent to
an effective annual rate of 0.85% and (3) 12b-1 fees equivalent to an effective
annual rate of 0.25%. These rates are the arithmetic average for all portfolios
that are available as investment options. In other words, they are based on the
hypothetical assumption that account values are allocated equally among the
variable investment options. The actual rates associated with any contract will
vary depending upon the actual allocation of contract values among the
investment options. These rates do not reflect expense limitation arrangements
in effect with respect to certain of the underlying portfolios as described in
the footnotes to the fee table for the underlying portfolios in "Fee Table"
earlier in this Prospectus. With these arrangements, the charges shown above
would be lower. This would result in higher values than those shown in the
following tables.
Because your circumstances will no doubt differ from those in the illustrations
that follow, values under your contract will differ, in most cases
substantially. Upon request, we will furnish you with a personalized
illustration.
D-1 Appendix IV: Hypothetical illustrations
Variable Deferred Annuity
Accumulator Select
$100,000 Single Contribution and No Withdrawals
Male, Issue Age 60
Benefits:
Greater of 6% Roll-Up or the Annual Ratchet to Age 85 Guaranteed Minimum
Death Benefit
Protection Plus
Guaranteed Minimum Income Benefit
Greater of 6% Roll
up to age 85 or the
Annual Ratchet to
age 85 Total Death Benefit
Minimum Death with Protection
Account Value Cash Value Benefit Plus
------------------- ------------------- ------------------- -------------------
Age Contract Year 0% 6% 0% 6% 0% 6% 0% 6%
- ----- -------------- --------- --------- --------- --------- --------- --------- --------- ---------
60 1 100,000 100,000 100,000 100,000 100,000 100,000 100,000 100,000
61 2 94,910 100,889 94,910 100,889 106,000 106,000 108,400 108,400
62 3 89,938 101,721 89,938 101,721 112,360 112,360 117,304 117,304
63 4 85,075 102,490 85,075 102,490 119,102 119,102 126,742 126,742
64 5 80,312 103,190 80,312 103,190 126,248 126,248 136,747 136,747
65 6 75,640 103,815 75,640 103,815 133,823 133,823 147,352 147,352
66 7 71,050 104,356 71,050 104,356 141,852 141,852 158,593 158,593
67 8 66,533 104,807 66,533 104,807 150,363 150,363 170,508 170,508
68 9 62,081 105,160 62,081 105,160 159,385 159,385 183,139 183,139
69 10 57,683 105,405 57,683 105,405 168,948 168,948 196,527 196,527
74 15 36,120 104,680 36,120 104,680 226,090 226,090 276,527 276,527
79 20 14,505 99,606 14,505 99,606 302,560 302,560 383,584 383,584
84 25 0 88,248 0 88,248 0 404,893 0 493,179
89 30 0 81,956 0 81,956 0 429,187 0 517,472
94 35 0 77,759 0 77,759 0 429,187 0 517,472
95 36 0 76,864 0 76,864 0 429,187 0 517,472
Lifetime Annual
Guaranteed Minimum Income Benefit
------------------------------------
Guaranteed Hypothetical
Income Income
------------------ -----------------
Age 0% 6% 0% 6%
- ----- --------- -------- --------- -------
60 N/A N/A N/A N/A
61 N/A N/A N/A N/A
62 N/A N/A N/A N/A
63 N/A N/A N/A N/A
64 N/A N/A N/A N/A
65 N/A N/A N/A N/A
66 N/A N/A N/A N/A
67 N/A N/A N/A N/A
68 N/A N/A N/A N/A
69 N/A N/A N/A N/A
74 14,266 14,266 14,266 14,266
79 20,393 20,393 20,393 20,393
84 0 34,821 0 34,821
89 N/A N/A N/A N/A
94 N/A N/A N/A N/A
95 N/A N/A N/A N/A
The hypothetical investment results are illustrative only and should not be
deemed a representation of past or future investment results. Actual investment
results may be more or less than those shown and will depend on a number of
factors, including investment allocations made by the owner. The account value,
cash value and guaranteed benefits for a contract would be different from the
ones shown if the actual gross rate of investment return averaged 0% or 6% over
a period of years, but also fluctuated above or below the average for individual
contract years. We can make no representation that these hypothetical investment
results can be achieved for any one year or continued over any period of time.
In fact, for any given period of time, the investment results could be negative.
Appendix IV: Hypothetical illustrations D-2
Statement of additional information
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TABLE OF CONTENTS
Page
Tax Information 2
Unit Values 15
Equitable Life's Pending Name Change 15
Custodian and Independent Auditors 15
Distribution of the Contracts 15
Financial Statements 16
How to obtain an Equitable Accumulator(R) Select(SM) Statement of Additional
Information for Separate Account No. 49
Send this request form to:
Equitable Accumulator(R) Select(SM)
P.O. Box 1547
Secaucus, NJ 07096-1547
- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
Please send me an Equitable Accumulator(R) Select(SM) SAI for Separate Account
No. 49 dated May 1, 2004.
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Name:
- --------------------------------------------------------------------------------
Address:
- --------------------------------------------------------------------------------
City State Zip
(SAI 4ACS(5/03))
X00679/Select '02 Series
Equitable Accumulator(R) Advisor(SM)
A combination variable and fixed deferred annuity contract
PROSPECTUS DATED MAY 1, 2004
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. You should read the prospectuses for each
Trust, which contain important information about the portfolios.
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WHAT IS THE EQUITABLE ACCUMULATOR(R) ADVISOR(SM)?
Equitable Accumulator(R) Advisor(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 offers death
benefit protection. It also offers 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 the fixed maturity options ("investment options"). This
contract may not currently be available in all states. Certain features and
benefits described in this Prospectus may vary in your state; all features and
benefits may not be available in all contracts or all states.
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Variable investment options
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o AXA Aggressive Allocation(1) o EQ/Alliance Small Cap Growth
o AXA Conservative Allocation(1) o EQ/Bernstein Diversified Value
o AXA Conservative-Plus Allocation(1) o EQ/Calvert Socially Responsible
o AXA Moderate Allocation(1) o EQ/Capital Guardian International
o AXA Moderate-Plus Allocation(1) o EQ/Capital Guardian Research
o AXA Premier VIP Aggressive Equity o EQ/Capital Guardian U.S. Equity
o AXA Premier VIP Core Bond o EQ/Emerging Markets Equity
o AXA Premier VIP Health Care o EQ/Equity 500 Index
o AXA Premier VIP High Yield o EQ/Evergreen Omega
o AXA Premier VIP International Equity o EQ/FI Mid Cap
o AXA Premier VIP Large Cap Core o EQ/FI Small/Mid Cap Value
Equity o EQ/J.P. Morgan Core Bond
o AXA Premier VIP Large Cap Growth o EQ/Janus Large Cap Growth
o AXA Premier VIP Large Cap Value o EQ/Lazard Small Cap Value
o AXA Premier VIP Small/Mid Cap o EQ/Marsico Focus
Growth o EQ/Mercury Basic Value Equity
o AXA Premier VIP Small/Mid Cap Value o EQ/Mercury International Value
o AXA Premier VIP Technology o EQ/MFS Emerging Growth Companies
o EQ/Alliance Common Stock o EQ/MFS Investors Trust
o EQ/Alliance Growth and Income o EQ/Money Market
o EQ/Alliance Intermediate Government o EQ/Putnam Growth & Income Value
Securities o EQ/Putnam Voyager
o EQ/Alliance International o EQ/Small Company Index
o EQ/Alliance Premier Growth o EQ/Technology(2)
o EQ/Alliance Quality Bond
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(1) The "The AXA Allocation" portfolio.
(2) Subject to shareholder approval, on or about May 14, 2004, we anticipate
that the EQ/Technology investment option (the "replaced option"), which
invests in a corresponding portfolio of EQ Advisors Trust, will be merged
into the AXA Premier VIP Technology investment option (the "surviving
option"), which invests in a corresponding portfolio of AXA Premier VIP
Trust. At that time, we will move the assets in the replaced option into
the surviving option and all allocation elections to the replaced option
will be considered allocations to the surviving option.
You may allocate amounts to any of the variable investment options. Each
variable investment option is a subaccount of Separate Account No. 45 and
Separate Account No. 49. 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 ("Rollover
IRA") or Roth IRA ("Roth Conversion IRA").
o An annuity that is an investment vehicle for a qualified defined contribution
plan ("QP").
A contribution of at least $10,000 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, 2004, 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 1-800-789-7771. 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.
X00690
Contents of this Prospectus
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EQUITABLE ACCUMULATOR(R) ADVISOR(SM)
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Index of key words and phrases 4
Who is Equitable Life? 5
How to reach us 6
Equitable Accumulator(R) Advisor(SM) at a glance -- key features 8
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FEE TABLE 10
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Example 12
Condensed financial information 16
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1. CONTRACT FEATURES AND BENEFITS 17
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How you can purchase and contribute to your contract 17
Owner and annuitant requirements 19
How you can make your contributions 19
What are your investment options under the contract? 19
Allocating your contributions 24
Your right to cancel within a certain number of days 25
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2. DETERMINING YOUR CONTRACT'S VALUE 26
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Your account value and cash value 26
Your contract's value in the variable investment options 26
Your contract's value in the fixed maturity options 26
Termination of your contract 26
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3. TRANSFERRING YOUR MONEY AMONG INVESTMENT OPTIONS 27
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Transferring your account value 27
Disruptive transfer activity 27
Dollar cost averaging 27
Rebalancing your account value 28
- ----------------------
"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 29
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Withdrawing your account value 29
How withdrawals are taken from your account value 30
How withdrawals affect your minimum death benefit 30
Surrendering your contract to receive its cash value 30
When to expect payments 30
Annuity purchase factors 30
Your annuity payout options 30
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5. CHARGES AND EXPENSES 33
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Charges that Equitable Life deducts 33
Charges that the Trusts deduct 33
Group or sponsored arrangements 33
Other distribution arrangements 33
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6. PAYMENT OF DEATH BENEFIT 35
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Your beneficiary and payment of benefit 35
How death benefit payment is made 35
Beneficiary continuation option 36
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7. TAX INFORMATION 38
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Overview 38
Buying a contract to fund a retirement arrangement 38
Transfers among investment options 38
Taxation of nonqualified annuities 38
Individual retirement arrangements (IRAs) 40
Special rules for contracts funding qualified plans 41
Federal and state income tax withholding and
information reporting 41
Impact of taxes to Equitable Life 42
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8. MORE INFORMATION 43
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About Separate Account No. 45 and Separate Account No. 49 43
About the Trusts 43
About our fixed maturity options 43
About the general account 44
About other methods of payment 44
Dates and prices at which contract events occur 45
About your voting rights 45
About legal proceedings 46
About our independent auditors 46
Financial statements 46
Transfers of ownership, collateral assignments,
loans and borrowing 46
Distribution of the contracts 46
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9. INCORPORATION OF CERTAIN DOCUMENTS BY REFERENCE 48
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APPENDICES
- --------------------------------------------------------------------------------
I --Condensed financial information A-1
II --Purchase considerations for QP contracts B-1
III--Market value adjustment 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 26
annuitant 17
annuity maturity date 32
annuity payout options 30
annuity purchase factors 30
automatic investment program 44
beneficiary 35
Beneficiary Continuation Option ("BCO") 36
business day 45
cash value 26
charges for state premium and other applicable taxes 33
contract date 9
contract date anniversary 9
contract year 9
contributions to Roth IRAs 40
regular contributions 40
rollovers and direct transfers 40
conversion contributions 41
contributions to traditional IRAs 41
regular contributions 41
rollovers and transfers 41
disruptive transfer activity 27
dollar cost averaging 27
EQAccess 6
fixed maturity amount 24
fixed maturity options 24
free look 25
general account 44
IRA cover
IRS 38
investment options cover
lifetime required minimum distribution withdrawals 30
lump sum withdrawals 29
market adjusted amount 24
market timing 27
market value adjustment 24
maturity dates 24
maturity value 24
minimum death benefit 35
mortality and expense risks and administrative charge 33
NQ cover
portfolio cover
Principal assurance allocation 24
processing office 6
QP cover
rate to maturity 24
Rebalancing 28
Rollover IRA cover
Roth Conversion IRA cover
Roth IRA 40
SAI cover
SEC cover
self-directed allocation 24
Separate Account No. 45 and Separate Account No. 49 43
Substantially equal withdrawals 29
Successor owner and annuitant 35
systematic withdrawals 29
TOPS 6
traditional IRA 40
Trusts cover
unit 26
variable investment options 19
wire transmittals and electronic applications 45
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 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 (Guaranteed Fixed
Interest Accounts in supplemental materials)
variable investment options Investment Funds
account value Annuity Account Value
rate to maturity Guaranteed Rates
unit Accumulation Unit
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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 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
$508.31 billion in assets as of December 31, 2003. 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.
Effective on or about September 7, 2004, we expect, subject to regulatory
approval, to change the name of "The Equitable Life Assurance Society of the
United States" to "AXA Equitable Life Insurance Company." When the name change
becomes effective, all references in any current prospectus, prospectus
supplement or statement of additional information to "The Equitable Life
Assurance Society of the United States" will become references to "AXA
Equitable Life Insurance Company." Accordingly, all references to "Equitable
Life" or "Equitable" will become references to "AXA Equitable."
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 CONTRIBUTIONS SENT BY REGULAR MAIL:
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Equitable Accumulator(R) Advisor(SM)
P.O. Box 13014
Newark, NJ 07188-0014
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FOR CONTRIBUTIONS SENT BY EXPRESS DELIVERY:
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Equitable Accumulator(R) Advisor(SM)
c/o Bank One, N.A.
300 Harmon Meadow Boulevard, 3rd Floor
Attn: Box 13014
Secaucus, NJ 07094
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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 Accumulator(R) Advisor(SM)
P.O. Box 1547
Secaucus, NJ 07096-1547
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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 Accumulator(R) Advisor(SM)
200 Plaza Drive, 4th Floor
Secaucus, NJ 07094
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REPORTS WE PROVIDE:
- --------------------------------------------------------------------------------
o written confirmation of financial transactions;
o statement of your contract values at the close of each calendar year and any
calendar quarter in which there was a financial transaction; and
o annual statement of your contract values as of the close of the contract
year.
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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 investment
options;
o change your 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 1-888-909-7770. If you are a client with AXA
Advisors you may use EQAccess by visiting our website at
http://www.axaonline.com and clicking on EQAccess. All other clients may access
EQAccess by visiting our other website at http://www.equitable.com. 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 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
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)
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CUSTOMER SERVICE REPRESENTATIVE:
- --------------------------------------------------------------------------------
You may also use our toll-free number (1-800-789-7771) to speak with one of our
customer service representatives. Our customer service representatives are
available on any business day from 8:30 a.m. until 5:30 p.m., Eastern Time.
You should send all contributions, notices, and requests to our processing
office at the address above.
WE REQUIRE THAT THE FOLLOWING TYPES OF COMMUNICATIONS BE ON SPECIFIC FORMS WE
PROVIDE FOR THAT PURPOSE:
(1) authorization for telephone transfers by your financial professional
(available only for contracts distributed through AXA Distributors);
(2) conversion of a traditional IRA contract to a Roth Conversion IRA;
6 Who is Equitable Life?
(3) election of the rebalancing program;
(4) tax withholding elections;
(5) election of the beneficiary continuation option;
(6) IRA contribution recharacterizations;
(7) certain section 1035 exchanges; and
(8) direct transfers.
WE ALSO HAVE SPECIFIC FORMS THAT WE RECOMMEND YOU USE FOR THE FOLLOWING TYPES
OF REQUESTS:
(1) address changes;
(2) beneficiary changes;
(3) transfers between investment options;
(4) contract surrender and withdrawal requests; and
(5) death claims.
TO CANCEL OR CHANGE ANY OF THE FOLLOWING WE REQUIRE WRITTEN NOTIFICATION
GENERALLY AT LEAST SEVEN CALENDAR DAYS BEFORE THE NEXT SCHEDULED TRANSACTION:
(1) dollar cost averaging;
(2) rebalancing;
(3) substantially equal withdrawals;
(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
Equitable Accumulator(R) Advisor(SM) at a glance -- key features
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Professional investment Equitable Accumulator(R) Advisor(SM) variable investment options invest in different portfolios managed
management by professional investment advisers.
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Fixed maturity options o 10 fixed maturity options with maturities ranging from approximately 1 to 10 years (subject to
state availability).
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. If you withdraw or transfer only a portion
of a fixed maturity amount, 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 also applies.
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FTax 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
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If you are purchasing an annuity contract as an Individual Retirement Annuity (IRA) or to fund an
employer retirement plan (QP or Qualified Plan), 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
compared 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 and in the SAI.)
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Contribution amounts o Initial minimum: $10,000
o Additional minimum: $1,000 (NQ and QP contracts)
$50 (IRA contracts)
Maximum contribution limitations may apply. In general, contributions are limited to $1.5 million.
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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 income tax and a tax penalty for certain withdrawals.
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Payout options o Fixed annuity payout options
o Variable Immediate Annuity payout options
o Income Manager(R) payout options
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Additional features o Dollar cost averaging
o Account value rebalancing (quarterly, semiannually and annually)
o Free transfers
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8 Equitable Accumulator(R) Advisor(SM) at a glance -- key features
Fees and charges o Daily charges on amounts invested in variable investment options for mortality and expense risks charge
and administrative charge at an annual rate of up to 0.50%.
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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." For example if your contract date is May 1, your contract
date anniversary is April 30.
----------------------------------------------------------------------------------------------------------
o We deduct a charge designed to approximate certain taxes that may be imposed on us, such as premium
taxes in your state. This charge is generally deducted from the amount applied to an 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 0.10% to 1.20%
annually, 12b-1 fees of 0.25% annually and other expenses.
- ------------------------------------------------------------------------------------------------------------------------------------
Annuitant issue ages NQ: 0-83
Rollover IRA: 20-83; Roth Conversion IRA: 20-83; QP: 20-75.
- ------------------------------------------------------------------------------------------------------------------------------------
The above is not a complete description of all material provisions of the
contract. In some cases, restrictions or exceptions apply. Also, all features
of the contract 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.
Currently, you may purchase a contract only if you are a participant in an
account established under a fee-based program sponsored and maintained by a
registered broker-dealer or other financial intermediary we approve (including
AXA Advisors, LLC, one of the distributors of the contracts and an affiliate of
Equitable Life). We may, in the future, offer this contract through other
means. The fees and expenses of a fee-based program are separate from and in
addition to the fees and expenses of the contract and generally provide for
various brokerage services. If you purchase this contract through a fee-based
arrangement and later terminate the arrangement, your contract will continue in
force. There may be charges associated with the fee-based arrangement should
you decide to no longer participate in the arrangement. Please consult with
your program sponsor for more details about your fee-based program.
OTHER CONTRACTS
We offer a variety of fixed and variable annuity contracts. They may offer
features, including investment options, credits, fees and/or charges that are
different from those in the contracts 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.
Equitable Accumulator(R) Advisor(SM) at a glance -- key features 9
Fee table
- --------------------------------------------------------------------------------
The following tables describe the fees and expenses that you will pay when
buying, owning, and surrendering the contract. Each of the charges and expenses
is more fully described in "Charges and expenses" later in this Prospectus.
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. Charges for certain
features shown in the fee table are mutually exclusive.
This first table describes the fees and expenses that you will pay periodically
during the time that you own the contract, not including underlying Trust
portfolio fees and expenses.
- --------------------------------------------------------------------------------
Charges we deduct from your variable investment options expressed as an annual
percentage of daily net assets
- --------------------------------------------------------------------------------
Mortality and expense risks charge and administrative charge(1) 0.50%
Total annual expenses 0.50%
- --------------------------------------------------------------------------------
You also bear your proportionate share of all fees and expenses paid by a
"Portfolio" that corresponds to any variable investment option you are using.
This table shows the lowest and highest total operating expenses charged by any
of the Portfolios that you will pay periodically during the time that you own
the contract. These fees and expenses are reflected in the Portfolio's net
asset value each day. Therefore, they reduce the investment return of the
Portfolio and the related variable investment option. Actual fees and expenses
are likely to fluctuate from year to year. More detail concerning each
Portfolio's fees and expenses is contained in the Trust prospectus for the
Portfolio.
- ----------------------------------------------------------------------------------
Portfolio operating expenses expressed as an annual percentage of daily net assets
- ----------------------------------------------------------------------------------
Total Annual Portfolio Operating Expenses for 2003 Lowest Highest
(expenses that are deducted from Portfolio assets ------ -------
including management fees, 12b-1 fees, service 0.56% 10.23%
fees, and/or other expenses)(2)
10 Fee table
This table shows the fees and expenses for 2003 as an annual percentage of each
Portfolio's daily average net assets.
- -------------------------------------------------------------------------------------
Management Other
Portfolio Name Fees(3) 12b-1 Fees(4) Expenses(5)
- -------------------------------------------------------------------------------------
AXA PREMIER VIP TRUST:
- -------------------------------------------------------------------------------------
AXA Aggressive Allocation 0.10% 0.25% 5.91%
AXA Conservative Allocation 0.10% 0.25% 9.04%
AXA Conservative-Plus Allocation 0.10% 0.25% 4.13%
AXA Moderate Allocation 0.10% 0.25% 0.39%
AXA Moderate-Plus Allocation 0.10% 0.25% 1.77%
AXA Premier VIP Aggressive Equity 0.62% 0.25% 0.15%
AXA Premier VIP Core Bond 0.60% 0.25% 0.26%
AXA Premier VIP Health Care 1.20% 0.25% 0.48%
AXA Premier VIP High Yield 0.59% 0.25% 0.16%
AXA Premier VIP International Equity 1.05% 0.25% 0.73%
AXA Premier VIP Large Cap Core Equity 0.90% 0.25% 0.52%
AXA Premier VIP Large Cap Growth 0.90% 0.25% 0.43%
AXA Premier VIP Large Cap Value 0.90% 0.25% 0.43%
AXA Premier VIP Small/Mid Cap Growth 1.10% 0.25% 0.35%
AXA Premier VIP Small/Mid Cap Value 1.10% 0.25% 0.31%
AXA Premier VIP Technology 1.20% 0.25% 0.83%
- -------------------------------------------------------------------------------------
EQ ADVISORS TRUST:
- -------------------------------------------------------------------------------------
EQ/Alliance Common Stock 0.48% 0.25% 0.06%
EQ/Alliance Growth and Income 0.57% 0.25% 0.06%
EQ/Alliance Intermediate Government
Securities 0.49% 0.25% 0.08%
EQ/Alliance International 0.74% 0.25% 0.13%
EQ/Alliance Premier Growth 0.90% 0.25% 0.05%
EQ/Alliance Quality Bond 0.52% 0.25% 0.06%
EQ/Alliance Small Cap Growth 0.75% 0.25% 0.07%
EQ/Bernstein Diversified Value 0.64% 0.25% 0.06%
EQ/Calvert Socially Responsible 0.65% 0.25% 0.55%
EQ/Capital Guardian International 0.85% 0.25% 0.21%
EQ/Capital Guardian Research 0.65% 0.25% 0.07%
EQ/Capital Guardian U.S. Equity 0.65% 0.25% 0.07%
EQ/Emerging Markets Equity 1.15% 0.25% 0.40%
EQ/Equity 500 Index 0.25% 0.25% 0.06%
EQ/Evergreen Omega 0.65% 0.25% 0.25%
EQ/FI Mid Cap 0.70% 0.25% 0.08%
EQ/FI Small/Mid Cap Value 0.75% 0.25% 0.10%
EQ/Janus Large Cap Growth 0.90% 0.25% 0.09%
EQ/J.P. Morgan Core Bond 0.44% 0.25% 0.08%
EQ/Lazard Small Cap Value 0.75% 0.25% 0.10%
EQ/Marsico Focus 0.90% 0.25% 0.07%
EQ/Mercury Basic Value Equity 0.60% 0.25% 0.07%
EQ/Mercury International Value 0.85% 0.25% 0.16%
EQ/MFS Emerging Growth Companies 0.65% 0.25% 0.07%
EQ/MFS Investors Trust 0.60% 0.25% 0.11%
EQ/Money Market 0.33% 0.25% 0.06%
EQ/Putnam Growth & Income Value 0.60% 0.25% 0.10%
EQ/Putnam Voyager 0.65% 0.25% 0.13%
EQ/Small Company Index 0.25% 0.25% 0.35%
EQ/Technology 0.90% 0.25% 0.09%
- -------------------------------------------------------------------------------------
- -------------------------------------------------------------------------------------------------------
Total Annual Fee Waivers Net Total
Underlying Expenses and/or Annual
Portfolio Before Expense Expenses
Fees and Expense Reimburse- After Expense
Portfolio Name Expenses(6) Limitation ments(7) Limitations
- -------------------------------------------------------------------------------------------------------
AXA PREMIER VIP TRUST:
- -------------------------------------------------------------------------------------------------------
AXA Aggressive Allocation 1.08% 7.34% (5.98)% 1.36%
AXA Conservative Allocation 0.84% 10.23% (9.13)% 1.10%
AXA Conservative-Plus Allocation 0.88% 5.36% (4.21)% 1.15%
AXA Moderate Allocation 0.86% 1.60% (0.43)% 1.17%
AXA Moderate-Plus Allocation 1.13% 3.25% (1.87)% 1.38%
AXA Premier VIP Aggressive Equity -- 1.02% -- 1.02%
AXA Premier VIP Core Bond -- 1.11% (0.16)% 0.95%
AXA Premier VIP Health Care -- 1.93% (0.08)% 1.85%
AXA Premier VIP High Yield -- 1.00% -- 1.00%
AXA Premier VIP International Equity -- 2.03% (0.23)% 1.80%
AXA Premier VIP Large Cap Core Equity -- 1.67% (0.32)% 1.35%
AXA Premier VIP Large Cap Growth -- 1.58% (0.23)% 1.35%
AXA Premier VIP Large Cap Value -- 1.58% (0.23)% 1.35%
AXA Premier VIP Small/Mid Cap Growth -- 1.70% (0.10)% 1.60%
AXA Premier VIP Small/Mid Cap Value -- 1.66% (0.06)% 1.60%
AXA Premier VIP Technology -- 2.28% (0.43)% 1.85%
- -------------------------------------------------------------------------------------------------------
EQ ADVISORS TRUST:
- -------------------------------------------------------------------------------------------------------
EQ/Alliance Common Stock -- 0.79% -- 0.79%
EQ/Alliance Growth and Income -- 0.88% -- 0.88%
EQ/Alliance Intermediate Government
Securities -- 0.82% -- 0.82%
EQ/Alliance International -- 1.12% (0.02)% 1.10%
EQ/Alliance Premier Growth -- 1.20% (0.04)% 1.16%
EQ/Alliance Quality Bond -- 0.83% -- 0.83%
EQ/Alliance Small Cap Growth -- 1.07% -- 1.07%
EQ/Bernstein Diversified Value -- 0.95% 0.00% 0.95%
EQ/Calvert Socially Responsible -- 1.45% (0.40)% 1.05%
EQ/Capital Guardian International -- 1.31% (0.11)% 1.20%
EQ/Capital Guardian Research -- 0.97% (0.02)% 0.95%
EQ/Capital Guardian U.S. Equity -- 0.97% (0.02)% 0.95%
EQ/Emerging Markets Equity -- 1.80% 0.00% 1.80%
EQ/Equity 500 Index -- 0.56% -- 0.56%
EQ/Evergreen Omega -- 1.15% (0.20)% 0.95%
EQ/FI Mid Cap -- 1.03% (0.03)% 1.00%
EQ/FI Small/Mid Cap Value -- 1.10% 0.00% 1.10%
EQ/Janus Large Cap Growth -- 1.24% (0.09)% 1.15%
EQ/J.P. Morgan Core Bond -- 0.77% 0.00% 0.77%
EQ/Lazard Small Cap Value -- 1.10% 0.00% 1.10%
EQ/Marsico Focus -- 1.22% (0.07)% 1.15%
EQ/Mercury Basic Value Equity -- 0.92% 0.00% 0.92%
EQ/Mercury International Value -- 1.26% (0.01)% 1.25%
EQ/MFS Emerging Growth Companies -- 0.97% -- 0.97%
EQ/MFS Investors Trust -- 0.96% (0.01)% 0.95%
EQ/Money Market -- 0.64% -- 0.64%
EQ/Putnam Growth & Income Value -- 0.95% 0.00% 0.95%
EQ/Putnam Voyager -- 1.03% (0.08)% 0.95%
EQ/Small Company Index -- 0.85% 0.00% 0.85%
EQ/Technology -- 1.24% (0.09)% 1.15%
- -------------------------------------------------------------------------------------------------------
Notes:
(1) A portion of this charge is for providing the minimum death benefit.
(2) "Total Annual Portfolio Operating Expenses" are based, in part, on estimated
amounts for options added during the fiscal year 2003 and for the underlying
portfolios.
(3) The management fees for each Portfolio cannot be increased without a vote of
that Portfolio's shareholders. See footnote (7) for any expense limitation
agreement information.
(4) 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.
(5) Other expenses shown are those incurred in 2003. The amounts shown as "Other
Expenses" will fluctuate from year to year depending on actual expenses. See
footnote (7) for any expense limitation agreement information.
Fee table 11
(6) The AXA Allocation variable investment options invest in corresponding
portfolios of the AXA Premier VIP Trust. Each AXA Allocation portfolio in
turn invests in shares of other portfolios of the EQ Advisors Trust and AXA
Premier VIP Trust ("the underlying portfolios"). Amounts shown reflect each
AXA Allocation portfolio's pro rata share of the fees and expenses of the
various underlying portfolios in which it invests. The fees and expenses
have been estimated based on the respective weighted investment allocations
as of 12/31/03. A "--" indicates that the listed portfolio does not invest
in underlying portfolios, i.e., it is not an allocation portfolio.
(7) The amounts shown reflect any fee waivers and/or expense reimbursements that
applied to each Portfolio. A "-" indicates that there is no expense
limitation in effect. "0.00%" indicates that the expense limitation
arrangement did not result in a fee waiver or reimbursement. Equitable Life,
the investment manager of AXA Premier VIP Trust and EQ Advisors Trust, has
entered into Expense Limitation Agreements with respect to certain
Portfolios, which are effective through April 30, 2005. Under these
agreements Equitable Life has agreed to waive or limit its fees and assume
other expenses of certain Portfolios, if necessary, in an amount that limits
each affected Portfolio's total Annual Expenses (exclusive of interest,
taxes, brokerage commissions, capitalized expenditures and extraordinary
expenses) to not more than specified amounts. 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. See the Prospectus for each applicable
underlying Trust for more information about the arrangements. In addition, a
portion of the brokerage commissions of certain portfolios of EQ Advisors
Trust Portfolio and AXA Premier VIP Trust Portfolio is used to reduce the
applicable Portfolio's expenses. If the above table reflected both the
expense limitation arrangements plus the portion of the brokerage
commissions used to reduce portfolio expenses, the net expenses would be as
shown in the table below:
- ------------------------------------------------
Portfolio Name
- ------------------------------------------------
AXA Aggressive Allocation 0.95%
AXA Conservative Allocation 0.73%
AXA Conservative-Plus Allocation 0.78%
AXA Moderate Allocation 0.79%
AXA Moderate-Plus Allocation 0.99%
AXA Premier VIP Aggressive Equity 0.95%
AXA Premier VIP Health Care 1.84%
AXA Premier VIP International Equity 1.73%
AXA Premier VIP Large Cap Core Equity 1.32%
AXA Premier VIP Large Cap Growth 1.32%
AXA Premier VIP Large Cap Value 1.28%
AXA Premier VIP Small/Mid Cap Growth 1.46%
AXA Premier VIP Small/Mid Cap Value 1.52%
AXA Premier VIP Technology 1.70%
EQ/Alliance Common Stock 0.77%
EQ/Alliance Growth and Income 0.85%
EQ/Alliance Premier Growth 1.15%
EQ/Alliance Small Cap Growth 1.03%
EQ/Calvert Socially Responsible 1.00%
EQ/Capital Guardian International 1.18%
EQ/Capital Guardian Research 0.93%
EQ/Capital Guardian U.S. Equity 0.93%
EQ/Emerging Markets Equity 1.78%
EQ/Evergreen Omega 0.84%
EQ/FI Mid Cap 0.88%
EQ/FI Small/Mid Cap Value 1.04%
EQ/Lazard Small Cap Value 1.00%
EQ/Marsico Focus 1.10%
EQ/Mercury Basic Value Equity 0.91%
EQ/Mercury International Value 1.18%
EQ/MFS Emerging Growth Companies 0.96%
EQ/MFS Investors Trust 0.94%
EQ/Putnam Growth & Income Value 0.93%
EQ/Putnam Voyager 0.93%
EQ/Technology 1.01%
- ------------------------------------------------
EXAMPLE
This example is intended to help you compare the cost of investing in the
contract with the cost of investing in other variable annuity contracts. These
costs include contract owner transaction expenses, contract fees, separate
account annual expenses, and underlying trust fees and expenses (including the
underlying portfolio fees and expenses).
The example below shows the expenses that a hypothetical contract owner, who
has elected baseBUILDER and Protection Plus would pay in the situations
illustrated. Since the Protection Plus feature only applies under certain
contracts, expenses would be lower for contracts that do not have Protection
Plus.
The fixed maturity options and the 12 month dollar cost averaging program are
not covered by the example. However, the withdrawal charge, the charge for any
optional benefits and the charge if you elect a Variable Immediate Annuity
payout option do apply to the fixed maturity options. 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.
12 Fee table
The example assumes that you invest $10,000 in the contract for the time
periods indicated. The example also assumes that your investment has a 5%
return each year. This example 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 example
is not an estimate or guarantee of future investment performance.
Although your actual costs may be higher or lower, based on these assumptions,
your costs would be:
Fee table 13
- -------------------------------------------------------------------------------------------------------
If you surrender your contract at the end
of the applicable time period
------------------------------------------------------
Portfolio Name 1 year 3 years 5 years 10 years
- -------------------------------------------------------------------------------------------------------
AXA PREMIER VIP TRUST:
- -------------------------------------------------------------------------------------------------------
AXA Aggressive Allocation $ 823.56 $ 2,391.61 $ 3,859.83 $ 7,134.33
AXA Conservative Allocation $ 1,126.58 $ 3,172.40 $ 4,969.88 $ 8,566.01
AXA Conservative-Plus Allocation $ 615.40 $ 1,824.98 $ 3,006.81 $ 5,844.08
AXA Moderate Allocation $ 220.88 $ 681.32 $ 1,167.82 $ 2,507.97
AXA Moderate-Plus Allocation $ 394.04 $ 1,194.69 $ 2,012.40 $ 4,133.69
AXA Premier VIP Aggressive Equity $ 159.60 $ 495.28 $ 854.21 $ 1,864.04
AXA Premier VIP Core Bond $ 169.05 $ 524.12 $ 903.08 $ 1,965.82
AXA Premier VIP Health Care $ 255.15 $ 784.35 $ 1,339.77 $ 2,851.80
AXA Premier VIP High Yield $ 157.50 $ 488.87 $ 843.32 $ 1,841.30
AXA Premier VIP International Equity $ 265.65 $ 815.77 $ 1,391.98 $ 2,954.89
AXA Premier VIP Large Cap Core Equity $ 227.85 $ 702.32 $ 1,202.97 $ 2,578.79
AXA Premier VIP Large Cap Growth $ 218.40 $ 673.82 $ 1,155.26 $ 2,482.60
AXA Premier VIP Large Cap Value $ 218.40 $ 673.82 $ 1,155.26 $ 2,482.60
AXA Premier VIP Small/Mid Cap Growth $ 231.00 $ 711.81 $ 1,218.83 $ 2,610.66
AXA Premier VIP Small/Mid Cap Value $ 226.80 $ 699.16 $ 1,197.68 $ 2,568.15
AXA Premier VIP Technology $ 291.90 $ 894.05 $ 1,521.52 $ 3,208.09
- -------------------------------------------------------------------------------------------------------
EQ ADVISORS TRUST:
- -------------------------------------------------------------------------------------------------------
EQ/Alliance Common Stock $ 135.45 $ 421.34 $ 728.46 $ 1,599.74
EQ/Alliance Growth and Income $ 144.90 $ 450.32 $ 777.81 $ 1,703.89
EQ/Alliance Intermediate Government Securities $ 138.60 $ 431.01 $ 744.93 $ 1,634.56
EQ/Alliance International $ 170.10 $ 527.32 $ 908.50 $ 1,977.07
EQ/Alliance Premier Growth $ 178.50 $ 552.90 $ 951.76 $ 2,066.68
EQ/Alliance Quality Bond $ 139.65 $ 434.23 $ 750.42 $ 1,646.15
EQ/Alliance Small Cap Growth $ 164.85 $ 511.31 $ 881.38 $ 1,920.70
EQ/Bernstein Diversified Value $ 152.25 $ 472.82 $ 816.07 $ 1,784.25
EQ/Calvert Socially Responsible $ 204.75 $ 632.56 $ 1,086.01 $ 2,342.10
EQ/Capital Guardian International $ 190.05 $ 588.00 $ 1,011.01 $ 2,188.72
EQ/Capital Guardian Research $ 154.35 $ 479.24 $ 826.98 $ 1,807.10
EQ/Capital Guardian U.S. Equity $ 154.35 $ 479.24 $ 826.98 $ 1,807.10
EQ/Emerging Markets Equity $ 241.50 $ 743.39 $ 1,271.56 $ 2,716.19
EQ/Equity 500 Index $ 111.30 $ 347.05 $ 601.48 $ 1,329.30
EQ/Evergreen Omega $ 173.25 $ 536.92 $ 924.74 $ 2,010.76
EQ/FI Mid Cap $ 160.65 $ 498.49 $ 859.65 $ 1,875.40
EQ/FI Small/Mid Cap Value $ 168.00 $ 520.92 $ 897.66 $ 1,954.56
EQ/J.P. Morgan Core Bond $ 133.35 $ 414.90 $ 717.47 $ 1,576.47
EQ/Janus Large Cap Growth $ 182.70 $ 565.68 $ 973.34 $ 2,111.21
EQ/Lazard Small Cap Value $ 168.00 $ 520.92 $ 897.66 $ 1,954.56
EQ/Marsico Focus $ 180.60 $ 559.29 $ 962.56 $ 2,088.97
EQ/Mercury Basic Value Equity $ 149.10 $ 463.18 $ 799.69 $ 1,749.88
EQ/Mercury International Value $ 184.80 $ 572.06 $ 984.11 $ 2,133.41
EQ/MFS Emerging Growth Companies $ 154.35 $ 479.24 $ 826.98 $ 1,807.10
EQ/MFS Investors Trust $ 153.30 $ 476.03 $ 821.52 $ 1,795.68
- -------------------------------------------------------------------------------------------------------
- -------------------------------------------------------------------------------------------------------
If you annuitize at the end
of the applicable time period
------------------------------------------------------
Portfolio Name 1 year 3 years 5 years 10 years
- -------------------------------------------------------------------------------------------------------
AXA PREMIER VIP TRUST:
- -------------------------------------------------------------------------------------------------------
AXA Aggressive Allocation $ 823.56 $ 2,391.61 $ 3,859.83 $ 7,134.33
AXA Conservative Allocation $ 1,126.58 $ 3,172.40 $ 4,969.88 $ 8,566.01
AXA Conservative-Plus Allocation $ 615.40 $ 1,824.98 $ 3,006.81 $ 5,844.08
AXA Moderate Allocation $ 220.88 $ 681.32 $ 1,167.82 $ 2,507.97
AXA Moderate-Plus Allocation $ 394.04 $ 1,194.69 $ 2,012.40 $ 4,133.69
AXA Premier VIP Aggressive Equity $ 159.60 $ 495.28 $ 854.21 $ 1,864.04
AXA Premier VIP Core Bond $ 169.05 $ 524.12 $ 903.08 $ 1,965.82
AXA Premier VIP Health Care $ 255.15 $ 784.35 $ 1,339.77 $ 2,851.80
AXA Premier VIP High Yield $ 157.50 $ 488.87 $ 843.32 $ 1,841.30
AXA Premier VIP International Equity $ 265.65 $ 815.77 $ 1,391.98 $ 2,954.89
AXA Premier VIP Large Cap Core Equity $ 227.85 $ 702.32 $ 1,202.97 $ 2,578.79
AXA Premier VIP Large Cap Growth $ 218.40 $ 673.82 $ 1,155.26 $ 2,482.60
AXA Premier VIP Large Cap Value $ 218.40 $ 673.82 $ 1,155.26 $ 2,482.60
AXA Premier VIP Small/Mid Cap Growth $ 231.00 $ 711.81 $ 1,218.83 $ 2,610.66
AXA Premier VIP Small/Mid Cap Value $ 226.80 $ 699.16 $ 1,197.68 $ 2,568.15
AXA Premier VIP Technology $ 291.90 $ 894.05 $ 1,521.52 $ 3,208.09
- -------------------------------------------------------------------------------------------------------
EQ ADVISORS TRUST:
- -------------------------------------------------------------------------------------------------------
EQ/Alliance Common Stock $ 135.45 $ 421.34 $ 728.46 $ 1,599.74
EQ/Alliance Growth and Income $ 144.90 $ 450.32 $ 777.81 $ 1,703.89
EQ/Alliance Intermediate Government Securities $ 138.60 $ 431.01 $ 744.93 $ 1,634.56
EQ/Alliance International $ 170.10 $ 527.32 $ 908.50 $ 1,977.07
EQ/Alliance Premier Growth $ 178.50 $ 552.90 $ 951.76 $ 2,066.68
EQ/Alliance Quality Bond $ 139.65 $ 434.23 $ 750.42 $ 1,646.15
EQ/Alliance Small Cap Growth $ 164.85 $ 511.31 $ 881.38 $ 1,920.70
EQ/Bernstein Diversified Value $ 152.25 $ 472.82 $ 816.07 $ 1,784.25
EQ/Calvert Socially Responsible $ 204.75 $ 632.56 $ 1,086.01 $ 2,342.10
EQ/Capital Guardian International $ 190.05 $ 588.00 $ 1,011.01 $ 2,188.72
EQ/Capital Guardian Research $ 154.35 $ 479.24 $ 826.98 $ 1,807.10
EQ/Capital Guardian U.S. Equity $ 154.35 $ 479.24 $ 826.98 $ 1,807.10
EQ/Emerging Markets Equity $ 241.50 $ 743.39 $ 1,271.56 $ 2,716.19
EQ/Equity 500 Index $ 111.30 $ 347.05 $ 601.48 $ 1,329.30
EQ/Evergreen Omega $ 173.25 $ 536.92 $ 924.74 $ 2,010.76
EQ/FI Mid Cap $ 160.65 $ 498.49 $ 859.65 $ 1,875.40
EQ/FI Small/Mid Cap Value $ 168.00 $ 520.92 $ 897.66 $ 1,954.56
EQ/J.P. Morgan Core Bond $ 133.35 $ 414.90 $ 717.47 $ 1,576.47
EQ/Janus Large Cap Growth $ 182.70 $ 565.68 $ 973.34 $ 2,111.21
EQ/Lazard Small Cap Value $ 168.00 $ 520.92 $ 897.66 $ 1,954.56
EQ/Marsico Focus $ 180.60 $ 559.29 $ 962.56 $ 2,088.97
EQ/Mercury Basic Value Equity $ 149.10 $ 463.18 $ 799.69 $ 1,749.88
EQ/Mercury International Value $ 184.80 $ 572.06 $ 984.11 $ 2,133.41
EQ/MFS Emerging Growth Companies $ 154.35 $ 479.24 $ 826.98 $ 1,807.10
EQ/MFS Investors Trust $ 153.30 $ 476.03 $ 821.52 $ 1,795.68
- -------------------------------------------------------------------------------------------------------
- -------------------------------------------------------------------------------------------------------
If you do not surrender your contract at the
end
of the applicable time period
- -------------------------------------------------------------------------------------------------------
Portfolio Name 1 year 3 years 5 years 10 years
- -------------------------------------------------------------------------------------------------------
AXA PREMIER VIP TRUST:
- -------------------------------------------------------------------------------------------------------
AXA Aggressive Allocation $ 823.56 $ 2,391.61 $ 3,859.83 $ 7,134.33
AXA Conservative Allocation $ 1,126.58 $ 3,172.40 $ 4,969.88 $ 8,566.01
AXA Conservative-Plus Allocation $ 615.40 $ 1,824.98 $ 3,006.81 $ 5,844.08
AXA Moderate Allocation $ 220.88 $ 681.32 $ 1,167.82 $ 2,507.97
AXA Moderate-Plus Allocation $ 394.04 $ 1,194.69 $ 2,012.40 $ 4,133.69
AXA Premier VIP Aggressive Equity $ 159.60 $ 495.28 $ 854.21 $ 1,864.04
AXA Premier VIP Core Bond $ 169.05 $ 524.12 $ 903.08 $ 1,965.82
AXA Premier VIP Health Care $ 255.15 $ 784.35 $ 1,339.77 $ 2,851.80
AXA Premier VIP High Yield $ 157.50 $ 488.87 $ 843.32 $ 1,841.30
AXA Premier VIP International Equity $ 265.65 $ 815.77 $ 1,391.98 $ 2,954.89
AXA Premier VIP Large Cap Core Equity $ 227.85 $ 702.32 $ 1,202.97 $ 2,578.79
AXA Premier VIP Large Cap Growth $ 218.40 $ 673.82 $ 1,155.26 $ 2,482.60
AXA Premier VIP Large Cap Value $ 218.40 $ 673.82 $ 1,155.26 $ 2,482.60
AXA Premier VIP Small/Mid Cap Growth $ 231.00 $ 711.81 $ 1,218.83 $ 2,610.66
AXA Premier VIP Small/Mid Cap Value $ 226.80 $ 699.16 $ 1,197.68 $ 2,568.15
AXA Premier VIP Technology $ 291.90 $ 894.05 $ 1,521.52 $ 3,208.09
- -------------------------------------------------------------------------------------------------------
EQ ADVISORS TRUST:
- -------------------------------------------------------------------------------------------------------
EQ/Alliance Common Stock $ 135.45 $ 421.34 $ 728.46 $ 1,599.74
EQ/Alliance Growth and Income $ 144.90 $ 450.32 $ 777.81 $ 1,703.89
EQ/Alliance Intermediate Government Securities $ 138.60 $ 431.01 $ 744.93 $ 1,634.56
EQ/Alliance International $ 170.10 $ 527.32 $ 908.50 $ 1,977.07
EQ/Alliance Premier Growth $ 178.50 $ 552.90 $ 951.76 $ 2,066.68
EQ/Alliance Quality Bond $ 139.65 $ 434.23 $ 750.42 $ 1,646.15
EQ/Alliance Small Cap Growth $ 164.85 $ 511.31 $ 881.38 $ 1,920.70
EQ/Bernstein Diversified Value $ 152.25 $ 472.82 $ 816.07 $ 1,784.25
EQ/Calvert Socially Responsible $ 204.75 $ 632.56 $ 1,086.01 $ 2,342.10
EQ/Capital Guardian International $ 190.05 $ 588.00 $ 1,011.01 $ 2,188.72
EQ/Capital Guardian Research $ 154.35 $ 479.24 $ 826.98 $ 1,807.10
EQ/Capital Guardian U.S. Equity $ 154.35 $ 479.24 $ 826.98 $ 1,807.10
EQ/Emerging Markets Equity $ 241.50 $ 743.39 $ 1,271.56 $ 2,716.19
EQ/Equity 500 Index $ 111.30 $ 347.05 $ 601.48 $ 1,329.30
EQ/Evergreen Omega $ 173.25 $ 536.92 $ 924.74 $ 2,010.76
EQ/FI Mid Cap $ 160.65 $ 498.49 $ 859.65 $ 1,875.40
EQ/FI Small/Mid Cap Value $ 168.00 $ 520.92 $ 897.66 $ 1,954.56
EQ/J.P. Morgan Core Bond $ 133.35 $ 414.90 $ 717.47 $ 1,576.47
EQ/Janus Large Cap Growth $ 182.70 $ 565.68 $ 973.34 $ 2,111.21
EQ/Lazard Small Cap Value $ 168.00 $ 520.92 $ 897.66 $ 1,954.56
EQ/Marsico Focus $ 180.60 $ 559.29 $ 962.56 $ 2,088.97
EQ/Mercury Basic Value Equity $ 149.10 $ 463.18 $ 799.69 $ 1,749.88
EQ/Mercury International Value $ 184.80 $ 572.06 $ 984.11 $ 2,133.41
EQ/MFS Emerging Growth Companies $ 154.35 $ 479.24 $ 826.98 $ 1,807.10
EQ/MFS Investors Trust $ 153.30 $ 476.03 $ 821.52 $ 1,795.68
- -------------------------------------------------------------------------------------------------------
14 Fee table
- -------------------------------------------------------------------------------------------------------
If you surrender your contract at the end
of the applicable time period
------------------------------------------------------
Portfolio Name 1 year 3 years 5 years 10 years
- -------------------------------------------------------------------------------------------------------
EQ ADVISORS TRUST:
- -------------------------------------------------------------------------------------------------------
EQ/Money Market $ 119.70 $ 372.93 $ 645.79 $ 1,424.07
EQ/Putnam Growth & Income Value $ 152.25 $ 472.82 $ 816.07 $ 1,784.25
EQ/Putnam Voyager $ 160.65 $ 498.49 $ 859.65 $ 1,875.40
EQ/Small Company Index $ 141.75 $ 440.67 $ 761.38 $ 1,669.28
EQ/Technology $ 182.70 $ 565.68 $ 973.34 $ 2,111.21
- -------------------------------------------------------------------------------------------------------
If you annuitize at the end
of the applicable time period
------------------------------------------------------
Portfolio Name 1 year 3 years 5 years 10 years
- -------------------------------------------------------------------------------------------------------
EQ ADVISORS TRUST:
- -------------------------------------------------------------------------------------------------------
EQ/Money Market $ 119.70 $ 372.93 $ 645.79 $ 1,424.07
EQ/Putnam Growth & Income Value $ 152.25 $ 472.82 $ 816.07 $ 1,784.25
EQ/Putnam Voyager $ 160.65 $ 498.49 $ 859.65 $ 1,875.40
EQ/Small Company Index $ 141.75 $ 440.67 $ 761.38 $ 1,669.28
EQ/Technology $ 182.70 $ 565.68 $ 973.34 $ 2,111.21
- -------------------------------------------------------------------------------------------------------
If you do not surrender your contract at the end
of the applicable time period
- -------------------------------------------------------------------------------------------------------
Portfolio Name 1 year 3 years 5 years 10 years
- -------------------------------------------------------------------------------------------------------
EQ ADVISORS TRUST:
- -------------------------------------------------------------------------------------------------------
EQ/Money Market $ 119.70 $ 372.93 $ 645.79 $ 1,424.07
EQ/Putnam Growth & Income Value $ 152.25 $ 472.82 $ 816.07 $ 1,784.25
EQ/Putnam Voyager $ 160.65 $ 498.49 $ 859.65 $ 1,875.40
EQ/Small Company Index $ 141.75 $ 440.67 $ 761.38 $ 1,669.28
EQ/Technology $ 182.70 $ 565.68 $ 973.34 $ 2,111.21
- -------------------------------------------------------------------------------------------------------
Fee table 15
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 periods shown for each of the
variable investment options available as of December 31, 2003.
16 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 $10,000 to
purchase a contract. You may make additional contributions of at least $1,000
each for NQ and QP contracts and $50 each for IRA contracts, subject to
limitations noted below. 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.
We may refuse to accept any contribution if the sum of all contributions under
all Equitable Accumulator(R) series 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. We may accept
less than the minimum initial contribution under a contract if an aggregate
amount of contracts purchased at the same time by an individual (including
spouse) meets the minimum.
- --------------------------------------------------------------------------------
The "annuitant" is the person who is the measuring life for determining
contract benefits. The annuitant is not necessarily the contract owner.
- --------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
Available
Contract for annuitant
type issue ages Source of contribution Limitations on contributions
- ------------------------------------------------------------------------------------------------------------------------------------
NQ 0 through 83 o After-tax money. o No additional contribution may be made after
attainment of age 84, or, if later, the first
o Paid to us by check or transfer of contract contract anniversary.
value in a tax-deferred exchange under
Section 1035 of the Internal Revenue Code.
- ------------------------------------------------------------------------------------------------------------------------------------
Rollover IRA 20 through 83 o Eligible rollover distributions from TSA o No rollover or direct transfer contributions
contracts or other 403(b) arrangements, may be made after attainment of age 84, or,
qualified plans, and governmental employer if later, the first contract anniversary.
457(b) plans.
o Contributions after age 70-1/2 must be net of
o Rollovers from another traditional required minimum distributions.
individual retirement arrangement.
o Although we accept regular IRA contributions
o Direct custodian-to-custodian transfers under Rollover IRA contracts, we intend
from another traditional individual that this contract be used primarily for
retirement arrangement. rollover and direct transfer contributions.
Regular IRA contributions are limited to
o Regular IRA contributions. $3,000 for 2004 and $4,000 for 2005.
Individuals who are at least age 50 but under
o Additional "catch-up" contributions. age 70-1/2 during the calendar year for which
the contribution is made may contribute
additional catch-up contributions of up to
$ 500.
- ------------------------------------------------------------------------------------------------------------------------------------
Contract features and benefits 17
- ------------------------------------------------------------------------------------------------------------------------------------
Available
Contract for annuitant
type issue ages Source of contribution Limitations on contributions
- ------------------------------------------------------------------------------------------------------------------------------------
Roth Conversion 20 through 83 o Rollovers from another Roth IRA. o No rollover or direct transfer contributions
IRA may be made after attainment of age 84, or,
o Conversion rollovers from a traditional IRA. if later, the first contract anniversary.
o Direct transfers from another Roth IRA. o Conversion rollovers after age 70-1/2 must be
net of required minimum distributions for the
o Regular Roth IRA contributions. traditional IRA you are rolling over.
o Additional catch-up contributions o You cannot roll over funds from a traditional
IRA if your adjusted gross income is
$100,000 or more.
o Although we accept regular Roth IRA contri-
butions under Roth IRA contracts, we intend
that this contract be used primarily for
rollover and direct transfer contributions.
Regular Roth IRA contributions are limited to
$3,000 for 2004 and $4,000 for 2005. Indi-
viduals who are at least age 50 during the
calendar year for which the contribution is
made may contribute additional catch-up
contributions of up to $500.
- ------------------------------------------------------------------------------------------------------------------------------------
QP 20 through 75 o Only transfer contributions from an o We do not accept regular ongoing payroll
existing defined contribution contributions.
qualified plan trust.
o Only one additional transfer contribution
o The plan must be qualified under Section may be made during a contract year.
401(a) of the Internal Revenue Code.
o No additional transfer contributions may be
o For 401(k) plans, transferred made after attainment of age 76, or, if later,
contributions may only include employee the first contract anniversary.
pre-tax contributions.
o Contributions after age 70-1/2 must be net of
any required minimum distributions.
o A separate QP contract must be established
for each plan participant.
o We do not accept employer remitted
contributions.
o We do not accept contributions from defined
benefit plans.
See Appendix II at the end of this Prospectus for a discussion of purchase
considerations of QP contracts.
- ------------------------------------------------------------------------------------------------------------------------------------
See "Tax information," later in this Prospectus and in the SAI for a more
detailed discussion of sources of contributions and certain contribution
limitations. For information on when contributions are credited under your
contract see "Dates and prices at which contract events occur" in "More
information" later in this Prospectus.
18 Contract features and benefits
OWNER AND ANNUITANT REQUIREMENTS
Under NQ contracts, the annuitant can be different from 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. In general, we
will not permit a contract to be owned by a minor unless it is pursuant to the
Uniform Gifts to Minors or the Uniform Transfers to Minors Act in your state.
Under all IRA contracts, the owner and annuitant must be the same person. In
some cases, an IRA contract may be held in a custodial individual retirement
account for the benefit of the individual annuitant.
Under QP contracts, the owner must be the trustee of the qualified plan and the
annuitant must be the plan participant/employee. See Appendix II at the end of
this Prospectus for more information on QP contracts.
- --------------------------------------------------------------------------------
A "participant" is an individual who is currently, or was formerly,
participating in an eligible employer's qualified plan.
- --------------------------------------------------------------------------------
HOW YOU CAN MAKE YOUR CONTRIBUTIONS
Except as noted below, contributions must be 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.
For your convenience, we will accept initial and additional contributions by
wire transmittal from certain broker-dealers who have agreements with us for
this purpose, including circumstances under which such contributions are
considered received by us when your order is taken by such broker-dealers.
Methods of payment are 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 payments. 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.
- --------------------------------------------------------------------------------
Our "business day" is generally any day the New York Stock Exchange is open for
trading and generally ends at 4:00 p.m. Eastern Time. A business day does not
include a 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 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/Money Market variable investment option.
Listed below are the currently available portfolios, their investment
objectives and their advisers.
- --------------------------------------------------------------------------------
You can choose from among variable investment options 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 the Accumulator(R)
Advisor(SM) 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.
Equitable Life serves as the investment manager of the Portfolios of the EQ
Advisors Trust and the AXA Premier VIP Trust. 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. The advisers for these Portfolios, listed in the chart below, are
those who make the investment decisions for each Portfolio.
- ------------------------------------------------------------------------------------------------------------------------------------
AXA Premier VIP Trust
Portfolio Name Objective Adviser(s)
- ------------------------------------------------------------------------------------------------------------------------------------
AXA AGGRESSIVE ALLOCATION Seeks long-term capital appreciation. o Equitable Life
- ------------------------------------------------------------------------------------------------------------------------------------
AXA CONSERVATIVE ALLOCATION Seeks a high level of current income. o Equitable Life
- ------------------------------------------------------------------------------------------------------------------------------------
AXA CONSERVATIVE-PLUS Seeks current income and growth of capital, with a o Equitable Life
ALLOCATION greater emphasis on current income.
- ------------------------------------------------------------------------------------------------------------------------------------
AXA MODERATE ALLOCATION Seeks long-term capital appreciation and current income. o Equitable Life
- ------------------------------------------------------------------------------------------------------------------------------------
AXA MODERATE-PLUS Seeks long-term capital appreciation and current income, o Equitable Life
ALLOCATION with a greater emphasis on capital appreciation.
- ------------------------------------------------------------------------------------------------------------------------------------
AXA PREMIER VIP AGGRESSIVE Seeks long-term growth of capital. o Alliance Capital Management L.P.
EQUITY
o MFS Investment Management
o Marsico Capital Management, LLC
o Provident Investment Counsel, Inc.
- ------------------------------------------------------------------------------------------------------------------------------------
AXA PREMIER VIP CORE BOND Seeks a balance of high current income and capital o BlackRock Advisors, Inc.
appreciation, consistent with a prudent level of risk.
o Pacific Investment Management Company LLC
- ------------------------------------------------------------------------------------------------------------------------------------
AXA PREMIER VIP HEALTH CARE Seeks long-term growth of capital. o A I M Capital Management, Inc.
o RCM Capital Management LLC
o Wellington Management Company, LLP
- ------------------------------------------------------------------------------------------------------------------------------------
AXA PREMIER VIP HIGH YIELD Seeks high total return through a combination of current o Alliance Capital Management L.P.
income and capital appreciation.
o Pacific Investment Management Company LLC
- ------------------------------------------------------------------------------------------------------------------------------------
AXA PREMIER VIP Seeks long-term growth of capital. o Alliance Capital Management L.P., through its
INTERNATIONAL EQUITY Bernstein Investment Research and Management
Unit
o Bank of Ireland Asset Management (U.S.)
o Marsico Capital Management, LLC
- ------------------------------------------------------------------------------------------------------------------------------------
AXA PREMIER VIP LARGE CAP Seeks long-term growth of capital. o Alliance Capital Management L.P., through its
CORE EQUITY Bernstein Investment Research and Management
Unit
o Janus Capital Management LLC
o Thornburg Investment Management, Inc.
- ------------------------------------------------------------------------------------------------------------------------------------
20 Contract features and benefits
Portfolios of the Trusts (continued)
- ------------------------------------------------------------------------------------------------------------------------------------
AXA Premier VIP Trust
Portfolio Name Objective Adviser(s)
- ------------------------------------------------------------------------------------------------------------------------------------
AXA PREMIER VIP LARGE CAP Seeks long-term growth of capital. o Alliance Capital Management L.P.
GROWTH
o RCM Capital Management LLC
o TCW Investment Management Company
- ------------------------------------------------------------------------------------------------------------------------------------
AXA PREMIER VIP LARGE CAP Seeks long-term growth of capital. o Alliance Capital Management L.P.
VALUE
o Institutional Capital Corporation
o MFS Investment Management
- ------------------------------------------------------------------------------------------------------------------------------------
AXA PREMIER VIP SMALL/MID Seeks long-term growth of capital. o Alliance Capital Management L.P.
CAP GROWTH
o Franklin Advisers, Inc.
o Provident Investment Counsel, Inc.
- ------------------------------------------------------------------------------------------------------------------------------------
AXA PREMIER VIP SMALL/MID Seeks long-term growth of capital. o AXA Rosenberg Investment Management LLC
CAP VALUE
o TCW Investment Management Company
o Wellington Management Company, LLP
- ------------------------------------------------------------------------------------------------------------------------------------
AXA PREMIER VIP TECHNOLOGY Seeks long-term growth of capital. o Firsthand Capital Management, Inc.
o RCM Capital Management LLC
o Wellington Management Company, LLP
- ------------------------------------------------------------------------------------------------------------------------------------
EQ Advisors Trust
Portfolio Name Objective Adviser(s)
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/ALLIANCE COMMON STOCK Seeks to achieve long-term growth of capital. o Alliance Capital Management L.P.
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/ALLIANCE GROWTH AND Seeks to provide a high total return. o Alliance Capital Management L.P.
INCOME
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/ALLIANCE INTERMEDIATE Seeks to achieve high current income consistent o Alliance Capital Management L.P.
GOVERNMENT SECURITIES with relative stability of principal.
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/ALLIANCE INTERNATIONAL Seeks to achieve long-term growth of capital. o Alliance Capital Management L.P.
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/ALLIANCE PREMIER GROWTH Seeks to achieve long-term growth of capital. o Alliance Capital Management L.P.
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/ALLIANCE QUALITY BOND Seeks to achieve high current income consistent o Alliance Capital Management L.P.
with moderate risk to capital.
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/ALLIANCE SMALL CAP Seeks to achieve long-term growth of capital. o Alliance Capital Management L.P.
GROWTH
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/BERNSTEIN DIVERSIFIED VALUE Seeks capital appreciation. o Alliance Capital Management L.P.,
through its Bernstein Investment Research
and Management Unit
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/CALVERT SOCIALLY Seeks long-term capital appreciation. o Calvert Asset Management Company, Inc.
RESPONSIBLE and Brown Capital Management, Inc.
- ------------------------------------------------------------------------------------------------------------------------------------
Contract features and benefits 21
Portfolios of the Trusts (continued)
- ------------------------------------------------------------------------------------------
EQ Advisors Trust
Portfolio Name Objective
- ------------------------------------------------------------------------------------------
EQ/CAPITAL GUARDIAN To achieve long-term growth of capital.
INTERNATIONAL
- ------------------------------------------------------------------------------------------
EQ/CAPITAL GUARDIAN Seeks to achieve long-term growth of capital.
RESEARCH
- ------------------------------------------------------------------------------------------
EQ/CAPITAL GUARDIAN U.S. Seeks to achieve long-term growth of capital.
EQUITY
- ------------------------------------------------------------------------------------------
EQ/EMERGING MARKETS EQUITY Seeks long-term capital appreciation.
- ------------------------------------------------------------------------------------------
EQ/EQUITY 500 INDEX Seeks a total return before expenses that approximates
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.
- ------------------------------------------------------------------------------------------
EQ/FI MID CAP Seeks long-term growth of capital.
- ------------------------------------------------------------------------------------------
EQ/FI SMALL/MID CAP VALUE Seeks long-term capital appreciation.
- ------------------------------------------------------------------------------------------
EQ/J.P. MORGAN CORE BOND Seeks to provide a high total return consistent with mod-
erate risk to capital and maintenance of liquidity.
- ------------------------------------------------------------------------------------------
EQ/JANUS LARGE CAP GROWTH Seeks long-term growth of capital.
- ------------------------------------------------------------------------------------------
EQ/LAZARD SMALL CAP VALUE Seeks capital appreciation.
- ------------------------------------------------------------------------------------------
EQ/MARSICO FOCUS Seeks long-term growth of capital.
- ------------------------------------------------------------------------------------------
EQ/MERCURY BASIC VALUE Seeks capital appreciation and secondarily, income.
EQUITY
- ------------------------------------------------------------------------------------------
EQ/MERCURY INTERNATIONAL Seeks capital appreciation.
VALUE
- ------------------------------------------------------------------------------------------
EQ/MFS EMERGING GROWTH Seeks to provide long-term capital growth.
COMPANIES
- ------------------------------------------------------------------------------------------
EQ/MFS INVESTORS TRUST Seeks long-term growth of capital with secondary objec-
tive to seek reasonable current income.
- ------------------------------------------------------------------------------------------
EQ/MONEY MARKET Seeks to obtain a high level of current income, preserve
its assets and maintain liquidity.
- ------------------------------------------------------------------------------------------
EQ/PUTNAM GROWTH & INCOME Seeks capital growth. Current income is a secondary
VALUE objective.
- ------------------------------------------------------------------------------------------
EQ/PUTNAM VOYAGER Seeks long-term growth of capital and any increased
income that results from this growth.
- ------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------
EQ Advisors Trust
Portfolio Name Adviser(s)
- ------------------------------------------------------------------------------------------
EQ/CAPITAL GUARDIAN o Capital Guardian Trust Company
INTERNATIONAL
- ------------------------------------------------------------------------------------------
EQ/CAPITAL GUARDIAN o Capital Guardian Trust Company
RESEARCH
- ------------------------------------------------------------------------------------------
EQ/CAPITAL GUARDIAN U.S. o Capital Guardian Trust Company
EQUITY
- ------------------------------------------------------------------------------------------
EQ/EMERGING MARKETS EQUITY o Morgan Stanley Investment Management, Inc.
- ------------------------------------------------------------------------------------------
EQ/EQUITY 500 INDEX o Alliance Capital Management L.P.
- ------------------------------------------------------------------------------------------
EQ/EVERGREEN OMEGA o Evergreen Investment Management Company, LLC
- ------------------------------------------------------------------------------------------
EQ/FI MID CAP o Fidelity Management & Research Company
- ------------------------------------------------------------------------------------------
EQ/FI SMALL/MID CAP VALUE o Fidelity Management & Research Company
- ------------------------------------------------------------------------------------------
EQ/J.P. MORGAN CORE BOND o J.P. Morgan Investment Management Inc.
- ------------------------------------------------------------------------------------------
EQ/JANUS LARGE CAP GROWTH o Janus Capital Management LLC
- ------------------------------------------------------------------------------------------
EQ/LAZARD SMALL CAP VALUE o Lazard Asset Management, LLC
- ------------------------------------------------------------------------------------------
EQ/MARSICO FOCUS o Marsico Capital Management, LLC
- ------------------------------------------------------------------------------------------
EQ/MERCURY BASIC VALUE o Mercury Advisors
EQUITY
- ------------------------------------------------------------------------------------------
EQ/MERCURY INTERNATIONAL o Merrill Lynch Investment Managers International Limited
VALUE
- ------------------------------------------------------------------------------------------
EQ/MFS EMERGING GROWTH o MFS Investment Management
COMPANIES
- ------------------------------------------------------------------------------------------
EQ/MFS INVESTORS TRUST o MFS Investment Management
- ------------------------------------------------------------------------------------------
EQ/MONEY MARKET o Alliance Capital Management L.P.
- ------------------------------------------------------------------------------------------
EQ/PUTNAM GROWTH & INCOME o Putnam Investment Management, LLC
VALUE
- ------------------------------------------------------------------------------------------
EQ/PUTNAM VOYAGER o Putnam Investment Management, LLC
- ------------------------------------------------------------------------------------------
22 Contract features and benefits
Portfolios of the Trusts (continued)
- ------------------------------------------------------------------------------------------------------------------------------------
EQ Advisors Trust
Portfolio Name Objective Adviser(s)
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/SMALL COMPANY INDEX Seeks to replicate as closely as possible (before the o Alliance Capital Management L.P.
deduction of portfolio expenses) the total return of
the Russell 2000 Index.
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/TECHNOLOGY Seeks to achieve long-term growth of capital. o Firsthand Capital Management, Inc.
o RCM Capital Management LLC
o Wellington Management Company, LLP
- ------------------------------------------------------------------------------------------------------------------------------------
You should consider the investment objectives, risks and charges and expenses
of the Portfolios carefully before investing. The prospectuses for the Trusts
contain this and other important information about the Portfolios. The
prospectuses should be read carefully before investing. In order to obtain
copies of Trust prospectuses that do not accompany this Prospectus, you may
call one of our customer service representatives 1-800-789-7771.
Contract features and benefits 23
FIXED MATURITY OPTIONS
We offer fixed maturity options with maturity dates ranging from one to ten
years. We will not accept allocations to a fixed maturity option if on the date
the contribution or transfer is to be applied: (i) the fixed maturity option's
maturity date is within the current calendar year; or (ii) the rate to maturity
is 3%. This means that at points in time there may be no fixed maturity options
available. You can allocate your contributions to one or more of these fixed
maturity options. These amounts become part of a non-unitized Separate Account.
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 all states. Check with your financial professional to see if
fixed maturity options are available in your state.
- --------------------------------------------------------------------------------
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. This rate will never be
less than 3%.
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 amounts 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 February 15th for each of the maturity years 2005 through
2014. Not all of these fixed maturity options will be available for annuitant
ages 76 and older. 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.
YOUR CHOICES AT THE MATURITY DATE. We will notify you on or before December
31st of the year 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.
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 next
available fixed maturity option with the earliest maturity date. As of February
13, 2004 the next available maturity date was February 15, 2010.
MARKET VALUE ADJUSTMENT. If you make any withdrawals (including transfers,
surrender 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 III at the end of this Prospectus provides an example
of how the market value adjustment is calculated.
ALLOCATING YOUR CONTRIBUTIONS
You may choose either of two ways to allocate your contributions under your
contract: self-directed and principal assurance.
SELF-DIRECTED ALLOCATION
You may allocate your contributions to one or more, or all, of the variable
investment options and fixed maturity options. Allocations must be in whole
percentages and you may change your allocations at any time. The total of your
allocations must equal 100%. If the annuitant is age 76 or older, you may
allocate contributions to fixed maturity options if their maturities are five
years or less. Also, you may not allocate amounts to fixed maturity options
with maturity dates that are later than the February 15th immediately following
the date annuity payments are to begin.
PRINCIPAL ASSURANCE ALLOCATION
You can elect this allocation program with a minimum initial contribution of
$10,000. You select a fixed maturity option and 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 7 years
from your contract date. If you
24 Contract features and benefits
make any withdrawals or transfers from the fixed maturity option before the
option's maturity date, the amount in the fixed maturity option will be
adjusted and may no longer grow to equal your initial contribution under the
principal assurance allocation. Principal assurance will not be available if
none of those maturity dates is available. 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 13, 2004
you chose the fixed maturity option with a maturity date of February 15, 2014,
since the rate to maturity was 4.15% on February 13, 2004, we would have
allocated $6,655 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 anticipate taking required minimum
distributions, you should consider whether your values in the variable
investment options are sufficient to meet your required minimum distributions.
See "Tax information" later in this Prospectus and in the SAI.
Please check with your financial professional if the principal assurance
allocation feature is available in your state.
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, with a signed letter of instruction electing this right, to our
processing office within 10 days after you receive it. If state law requires,
this "free look" period may be longer.
Generally, your refund will equal your account value under the contract on the
day we receive notification of your decision to cancel the contract and will
reflect (i) any investment gain or loss in the variable investment options
(less the daily charges we deduct), and (ii) any positive or negative market
value adjustments in the fixed maturity options through the date we receive
your contract. Some states require that we refund the full amount of your
contribution (not reflecting (i) and (ii) above). For any IRA contract 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 may 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 and in the SAI for
possible consequences of cancelling your contract.
In addition to the cancellation right described above, if you fully convert an
existing traditional IRA contract to a Roth Conversion IRA contract, you may
cancel your Roth Conversion IRA contract and return to a Rollover IRA contract.
Our processing office or your financial professional can provide you with the
cancellation instructions.
Please note that if you are holding your traditional or Roth individual
retirement annuity contract in a custodial individual retirement account, your
contract and your account must match: you cannot hold a Roth individual
retirement annuity in a traditional individual retirement account and vice
versa.
Contract features and benefits 25
2. Determining your contract's value
- --------------------------------------------------------------------------------
YOUR ACCOUNT VALUE AND CASH VALUE
Your "account value" is the total of the values you have in: (i) the variable
investment options and (ii) the market adjusted amounts in the fixed maturity
options.
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. Please see
"Surrendering 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 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 less daily charges for mortality and expense risks
and administrative 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; and/or
(iii) increased to reflect a transfer into, or decreased to reflect a
transfer out of, a variable investment option.
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, provided
there have been no withdrawals or transfers.
TERMINATION OF YOUR CONTRACT
Your contract will terminate without value if your account value is
insufficient to pay any applicable charges when due. Your account value could
become insufficient due to withdrawals and/or poor market performance. Upon
such termination, you will lose any applicable guaranteed benefits.
26 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 may not transfer to a fixed maturity option that matures in the current
calendar year, or that has a rate to maturity of 3% or less.
o If the annuitant is 76 or older, you must limit your transfers to fixed
maturity options to those with maturities of five years or less. Also, the
maturity dates may be no later than the February 15th immediately following
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.
In addition, we reserve the right to restrict transfers among variable
investment options as described in your contract, including limitations on the
number, frequency, or dollar amount of transfers.
You may request a transfer in writing, by telephone using TOPS or through
EQAccess. You must send in all written transfer requests directly to our
processing office. Transfer requests should specify:
(1) the contract number,
(2) the dollar amounts or percentages of your current account value 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 Accumulator(R) Advisor(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.
Frequent transfers, including market timing and other program trading
strategies, may be disruptive to the underlying portfolios in which the
variable investment options invest. Disruptive transfer activity may hurt the
long term performance of a portfolio by, for example, requiring it to maintain
larger amounts of cash or to liquidate portfolio holdings at a disadvantageous
time or price. We currently use the procedures described below to discourage
disruptive transfer activity in AXA Premier VIP Trust and EQ Advisors Trust.
You should understand, however, that these procedures are subject to the
following limitations: (1) they do not eliminate the possibility that
disruptive transfer activity, including market timing, will occur or that
portfolio performance will be affected by such activity; (2) the design of
these procedures involves inherently subjective judgments, which we and AXA
Premier VIP Trust and EQ Advisors Trust seek to make in a fair and reasonable
manner consistent with interests of all policy and contract owners. Certain
frequent transfer activities attempt to exploit inefficiencies in how portfolio
securities are valued. Please see the prospectuses for the underlying
portfolios for more information on how portfolio shares are priced.
If we determine that your transfer patterns are disruptive, 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. 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 reduce disruptive activity, we
monitor the frequency of transfers, including the size of transfers in relation
to portfolio assets, in each underlying portfolio. When a potentially
disruptive transfer into or out of a portfolio occurs on a day when the
portfolio's aggregate deposits or aggregate redemptions exceed our monitoring
threshold, we may take the actions described above to restrict availability of
voice, fax and automated transaction services. We currently apply such action
for the remaining life of each affected contract. We also currently provide a
letter to owners who have engaged in disruptive transfer activity of our
intention to restrict access to communication 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 potentially disruptive transfer
activity and our monitoring procedures and thresholds, as well as change our
procedures to restrict this activity.
Our ability to monitor potentially disruptive transfer activity is limited in
certain circumstances. Group annuity contracts may be owned by retirement plans
on whose behalf we provide transfer instructions on an omnibus (aggregate)
basis, which may mask the disruptive transfer activity of individual plan
participants, and/or interfere with our ability to restrict communication
services. Also, underlying portfolios that are not in AXA Premier VIP Trust or
EQ Advisors Trust may be available for investment through companies that may
have policies and procedures regarding disruptive transfer activity that are
different from ours. Please see the prospectuses for those underlying
portfolios for more information.
DOLLAR COST AVERAGING
Dollar cost averaging allows you to gradually transfer amounts from the
EQ/Money Market option to the other variable investment options by periodically
transferring approximately the same dollar amount to the other 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 guar-
Transferring your money among investment options 27
antee that you will earn a profit or be protected against losses. You may not
make transfers to the fixed maturity options.
If your value in the EQ/Money Market option is at least $5,000, you may choose,
at any time, to have a specified dollar amount of your value transferred from
that option to the other variable investment options. You can select to have
transfers made on a monthly, quarterly or annual basis. The transfer date will
be the same calendar day of the month as the contract date, but not later than
the 28th day of the month. You can also specify the number of transfers or
instruct us to continue making the transfers until all amounts in the EQ/ Money
Market option have been transferred out.
The minimum amount that we will transfer each time is $250. The maximum amount
we will transfer is equal to your value in the EQ/ 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/Money Market option is equal to
or less than the amount you have elected to have transferred, the entire amount
will be transferred. The dollar cost averaging program 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. There is no charge for the dollar cost averaging feature.
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 on a contract year basis).
Rebalancing will occur on the same day of the month as the contract date. If a
contract is established after the 28th, rebalancing will occur on the first
business day of the month following the contract issue date.
While your rebalancing program is in effect, we will transfer amounts among the
variable investment options 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. 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; your rebalancing allocations will not be changed and the
rebalancing program will remain in effect unless you request that it be
canceled 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. There is no charge for the
rebalancing feature.
28 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. If you request to withdraw more than 90% of
a contract's current cash value, after a withdrawal, we will treat it as a
request to surrender the contract for its cash value. See "Surrendering your
contract to receive its cash value" below. For the tax consequences of
withdrawals, see "Tax information" later in this Prospectus and in the SAI.
Please see "Termination of your contract" in "Determining your contract value"
earlier in the Prospectus and "How withdrawals affect your minimum death
benefit" below for more information on how withdrawals could potentially cause
your contract to terminate.
- ------------------------------------------------------------------------------
Method of withdrawal
-----------------------------------------------------------
Lifetime
required
Substan- minimum
Contract Lump sum Systematic tially equal distribution
- ------------------------------------------------------------------------------
NQ Yes Yes No No
- ------------------------------------------------------------------------------
Rollover IRA Yes Yes Yes Yes
- ------------------------------------------------------------------------------
Roth Conversion
IRA Yes Yes Yes No
- ------------------------------------------------------------------------------
QP Yes No No Yes
- ------------------------------------------------------------------------------
We impose no withdrawal charge for withdrawals from the Equitable
Accumulator(R) Advisor(SM) variable annuity contract. However, withdrawals,
including withdrawals made to pay all or part of any fee that may be associated
with the fee-based program, may be subject to income tax and a 10% penalty tax,
as described in "Tax information" later in this Prospectus and in the SAI. In
addition, the fee-based program sponsor may apply a charge if you decide to no
longer participate in the program. You should consult with your program sponsor
for more details about your particular fee-based arrangement.
LUMP SUM WITHDRAWALS
(All contracts)
You may take lump sum withdrawals from your account value at any time. The
minimum amount you may withdraw is $300.
SYSTEMATIC WITHDRAWALS
(NQ and all IRA contracts)
You may take systematic withdrawals of a particular dollar amount or a
particular percentage of your account value.
You may take systematic withdrawals on a monthly, quarterly or annual basis as
long as the withdrawals do not exceed the following percentages of your account
value: 1.2% monthly, 3.6% quarterly and 15.0% annually. The minimum amount you
may take in each systematic withdrawal is $250. If the amount withdrawn would
be less than $250 on the date a withdrawal is to be taken, we will not make a
payment and we will terminate your systematic withdrawal election.
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, we
will make the withdrawals on the same calendar day of the month as the contract
date. You must wait at least 28 days after your contract is issued before your
systematic withdrawals can begin.
You may elect to take systematic withdrawals at any time. If you own an IRA
contract, you may elect this withdrawal method only if you are between ages
59-1/2 and 70-1/2.
You may change the payment frequency, or amount or the percentage of your
systematic withdrawals, once each contract year. However, you may not change
the amount or percentage in any contract year in which you have already taken a
lump sum withdrawal. You can cancel the systematic withdrawal option at any
time.
SUBSTANTIALLY EQUAL WITHDRAWALS
(All IRA contracts)
We offer our "substantially equal withdrawals option" to allow you to receive
distributions from your account value without triggering the 10% additional
federal income tax penalty, which normally applies to distributions made before
age 59-1/2. See "Tax information" later in this Prospectus and in the SAI. We
use one of the IRS-approved methods for doing this; this is not the exclusive
method of meeting this exception. After consultation with your tax adviser, you
may decide to use another method which would require you to compute amounts
yourself and request lump sum withdrawals. In such a case, a withdrawal charge
may apply. Once you begin to take substantially equal withdrawals, you should
not stop them or change the pattern of your withdrawals until after the later
of age 59-1/2 or five full years after the first withdrawal. If you stop or
change the withdrawals or take a lump sum withdrawal, you may be liable for the
10% federal tax penalty that would have otherwise been due on prior withdrawals
made under this option and for any interest on the delayed payment of the
penalty.
In accordance with IRS guidance, an individual who has elected to receive
substantially equal withdrawals may change, without penalty, from one of the
IRS-approved methods of calculating fixed payments to another IRS-approved
method (similar to the required minimum distribution rules) of calculating
payments which vary each year.
You may elect to take substantially equal withdrawals at any time before age
59-1/2. 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. You may not elect to
receive the first payment in the same contract year in which you took a lump
sum withdrawal. We will calculate the amount of your substantially equal
withdrawals using the IRS-approved method we offer. The payments will be made
monthly, quarterly or annually as you select. These payments will continue
until we receive written notice from you to cancel this option or you take a
lump sum withdrawal. You may elect to start receiving substantially
Accessing your money 29
equal withdrawals again, but the payments may not restart in the same contract
year in which you took a lump sum withdrawal. We will calculate the new
withdrawal amount.
LIFETIME REQUIRED MINIMUM DISTRIBUTION WITHDRAWALS
(Rollover IRA and QP contracts only -- See "Tax information" later in this
Prospectus and in the SAI)
We offer the minimum distribution withdrawal option to help you meet 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 or in any later year. The
minimum amount we will pay out is $250 or, if less, your account value. If your
account value is less than $500 after the withdrawal, we will treat it as a
request to surrender the contract for its cash value. See "Surrendering your
contract to receive its cash value" below. Currently, minimum distribution
withdrawal payments will be made annually. See "Required minimum distributions"
in "Tax information" later in this Prospectus and in the SAI for your specific
type of retirement arrangement.
- --------------------------------------------------------------------------------
For Rollover IRA contracts, 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).
- --------------------------------------------------------------------------------
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) first. A market value adjustment may apply to
withdrawals from the fixed maturity options.
HOW WITHDRAWALS AFFECT YOUR MINIMUM DEATH BENEFIT
Withdrawals will reduce your minimum 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
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
minimum death benefit was $40,000 before the withdrawal, it would be reduced by
$16,000 ($40,000 x .40) and your new minimum death benefit after the withdrawal
would be $24,000 ($40,000 - $16,000).
SURRENDERING 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.
For the tax consequences of surrenders, see "Tax information" later in this
Prospectus and in the SAI.
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, payment of a death benefit, payment of any amount you
withdraw and, upon surrender, 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 value 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 10 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.
ANNUITY PURCHASE FACTORS
Annuity purchase factors are the factors applied to determine your periodic
payments under the annuity payout options. The annuity payout options are
discussed under "Your annuity payout options" below. The guaranteed annuity
purchase factors are those factors specified in your contract. The current
annuity purchase factors are those factors that are in effect at any given
time. Annuity purchase factors are based on interest rates, mortality tables,
frequency of payments, the form of annuity benefit, and the annuitant's (and
any joint annuitant's) age and sex in certain instances.
YOUR ANNUITY PAYOUT OPTIONS
Equitable Accumulator(R) Advisor(SM) offers you several choices of annuity
payout options. Some enable you to receive fixed annuity payments, which can be
either level or increasing, 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.
30 Accessing your money
- --------------------------------------------------------------
Fixed annuity payout options Life annuity
Life annuity with period
certain
Life annuity with refund
certain
Period certain annuity
- --------------------------------------------------------------
Variable Immediate Annuity Life annuity (not
payout options available in New York)
Life annuity with period
certain
- --------------------------------------------------------------
Income Manager payout options Life annuity with a
(available for annuitants period certain
age 83 or less at Period certain annuity
contract issue)
- --------------------------------------------------------------
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. A fixed life annuity with a
period certain is the form of annuity under the contract 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.
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 even if the annuitant dies
before the end of the period certain. The guaranteed 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 OPTIONS
With fixed annuities, we guarantee fixed annuity payments that will be based
either on the tables of guaranteed annuity purchase factors in your contract or
on our then current annuity purchase factors, 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 Immediate annuities may be funded through your choice of available
variable investment options investing in portfolios of EQ Advisors Trust and
AXA Premier VIP Trust. The contract also offers a fixed income annuity payout
option that can be elected in combination with the variable annuity payout
option. The amount of each variable income 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.
INCOME MANAGER PAYOUT OPTIONS
The Income Manager payout annuity contracts differ from the other payout
annuity contracts. The other payout annuity contracts provide higher or lower
income levels, but do not have all the features of the Income Manager payout
annuity contract. You may request an illustration of the Income Manager payout
annuity contract from your financial professional. Income Manager payout
options are described in a separate prospectus that is available from your
financial professional. Before you select an Income Manager payout option, you
should read the prospectus which contains important information that you should
know.
Both NQ and IRA Income Manager payout options provide guaranteed level
payments. The Income Manager (life annuity with period certain) also provides
guaranteed increasing payments (NQ contracts only).
For QP contracts, if you want to elect an Income Manager payout option, we will
first roll over amounts in such contract to a Rollover IRA contract. You will
be the owner of the Rollover IRA contract.
You may choose to apply the account value of your Equitable Accumulator(R)
Advisor(SM) contract to an Income Manager payout annuity.
Depending upon your circumstances, an Income Manager contract may be purchased
on a tax-free basis. Please consult your tax adviser. The Income Manager payout
options are not available in all states.
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 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.
Accessing your money 31
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. The contract owner and annuitant
must meet the issue age and payment requirements.
You can choose the date annuity payments begin but it may not be earlier than
thirteen months from the Equitable Accumulator(R) Advisor(SM) contract date.
Except with respect to the Income Manager annuity payout options, where
payments are made on the 15th day of each month, 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.
The amount of the annuity payments will depend on the amount applied to
purchase the annuity and the applicable annuity purchase factors, discussed
earlier.
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.
ANNUITY MATURITY DATE
Your contract has a maturity date by which you must either take a lump sum
withdrawal or select an annuity payout option. The maturity date is generally
the contract date anniversary that follows the annuitant's 90th birthday.
For contracts issued in Pennsylvania, the maturity date is related to the
contract issue date, as follows:
- --------------------------------
Maximum
Issue age annuitization age
- --------------------------------
0-75 85
76 86
77 87
78-80 88
81-83 90
- --------------------------------
Before the last day 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: (i) transfers (if permitted in
the future) among the variable investment options if a Variable Immediate
Annuity payout option is selected; and (ii) withdrawals or contract surrender
if an Income Manager annuity payout option is chosen.
32 Accessing your money
5. Charges and expenses
- --------------------------------------------------------------------------------
CHARGES THAT EQUITABLE LIFE DEDUCTS
MORTALITY AND EXPENSE RISKS CHARGE AND ADMINISTRATIVE 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 minimum death
benefit, as well as administrative expenses under the contract. The daily
charge is equivalent to an annual rate of up to 0.50% 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 income 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. Lastly,
we assume a mortality risk to the extent that at the time of death, the minimum
death benefit exceeds the account 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.
The administrative charge is to compensate us for administrative expenses under
the contract.
We may reduce or eliminate the mortality and expense risks charge and
administrative charge if we believe that the risks or administrative expenses
for which this charge are imposed are reduced or eliminated. We will not permit
a reduction or elimination of this charge where it would be unfairly
discriminatory.
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 charge that
might be imposed varies by jurisdiction and ranges from 0% to 3.5%.
FEE-BASED EXPENSES
The fees and expenses of a fee-based program are separate from and in addition
to the fees and expenses of the contract. Please consult with your program
sponsor for more details about your fee-based program.
CHARGES THAT THE TRUSTS DEDUCT
The Trusts deduct charges for the following types of fees and expenses:
o Management fees ranging from 0.10% 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 prospectuses for the Trusts.
GROUP OR SPONSORED ARRANGEMENTS
For certain group or sponsored arrangements, we may reduce the mortality and
expense risks charge and administrative charge or change the minimum
contribution requirements. We may 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 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 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 ("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.
OTHER DISTRIBUTION ARRANGEMENTS
We may reduce or eliminate charges when sales are made in a manner that result
in savings of sales and administrative expenses, such as sales through persons
who are compensated by clients for recom-
Charges and expenses 33
mending 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 would be unfairly discriminatory.
34 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. In a QP
contract, the beneficiary must be the trustee. Where an NQ contract is owned by
a minor pursuant to the Uniform Gift to Minors Act or the Uniform Transfers to
Minors Act, the beneficiary must be the estate of the annuitant. Where an IRA
contract is owned in a custodial individual retirement account, the custodian
must be the beneficiary so that the custodian can reinvest or distribute the
death benefit as the beneficiary of the account desires.
The death benefit is equal to your account value (without adjustment for any
otherwise applicable negative market value adjustment) or, if greater, the
minimum death benefit. The minimum death benefit is equal to your total
contributions less withdrawals. See "How withdrawals affect your minimum death
benefit" earlier in this Prospectus. 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.
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, a
surviving spouse of the deceased owner/annuitant can choose to be treated as
the successor owner/annuitant and continue the contract. Only a spouse who is
the sole primary beneficiary can be a successor owner/annuitant. The successor
owner/annuitant feature is only available under NQ and individually owned IRA
contracts.
For NQ and 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 can change after the original owner's death.
When the owner is not the annuitant under an NQ contract and the owner dies
before annuity payments begin, the beneficiary named to receive the death
benefit upon the annuitant's death will become the successor owner. If you do
not want this beneficiary 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. The surviving
owner automatically takes the place of any other beneficiary designation.
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 designated
beneficiary 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. An eligible successor owner,
including a surviving joint owner after the first owner dies, may elect the
beneficiary continuation option for NQ contracts discussed in "Beneficiary
continuation option" below.
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.
SUCCESSOR OWNER AND ANNUITANT
If you are both the contract owner and the annuitant, and your spouse is the
sole primary beneficiary or the joint owner, then your spouse may elect to
receive the death benefit or continue the contract as successor
owner/annuitant.
If your surviving spouse decides to continue the contract, then as of the date
we receive satisfactory proof of your death, any required instructions,
information and forms necessary to effect the successor owner/annuitant
feature, we will increase the account value to equal your guaranteed minimum
death benefit as of the date of your death
Payment of death benefit 35
if such death benefit is greater than such account value (adjusted for any
subsequent withdrawals). 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. In determining whether the minimum death benefit will
continue to grow, we will use your surviving spouse's age (as of the date we
receive satisfactory proof of your death, any required instructions and the
information and forms necessary to effect the successor owner/annuitant
feature).
Where an IRA contract is owned in a custodial individual retirement account,
and your spouse is the sole primary beneficiary of the account, the custodian
may request that the spouse be substituted as annuitant after your death.
BENEFICIARY CONTINUATION OPTION
This feature permits a designated individual, on the contract owner's death, to
maintain a contract in the deceased contract owner's 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, Roth IRA and NQ contracts, subject to state availability. Please speak
with your financial professional for further information.
BENEFICIARY CONTINUATION OPTION FOR TRADITIONAL IRA AND ROTH IRA CONTRACTS
ONLY. The beneficiary continuation option must be elected by September 30th of
the year following the calendar year of your death and before any other
inconsistent election is made. Beneficiaries who do not make a timely election
will not be eligible for this 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 applicable death
benefit if such death benefit is greater than such account value. Where an IRA
contract is owned in a custodial individual retirement account, the custodian
may reinvest the death benefit in an individual retirement annuity contract,
using the account beneficiary as the annuitant. Please speak with your
financial professional for further information.
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. For sole
spousal beneficiaries, payments may begin by December 31st of the calendar year
in which you would have reached age 70-1/2, if such time is later. For
traditional IRA contracts only, if you die before your Required Beginning Date
for Required Minimum Distributions, as discussed in the Statement of Additional
Information, the beneficiary may choose the "5-year rule" option instead of
annual payments over life expectancy. The 5-year rule is always available to
beneficiaries under Roth IRA contracts. If the beneficiary chooses this option,
the beneficiary may take withdrawals as desired, but the entire account value
must be fully withdrawn by December 31st of the calendar year which contains
the fifth anniversary of your death.
Under the beneficiary continuation option for IRA and Roth IRA contracts:
o The contract continues in your name for the benefit of your beneficiary.
o This feature is only available if the beneficiary is an individual. Certain
trusts with only individual beneficiaries will be treated as individuals for
this purpose.
o If there is more than one beneficiary, each beneficiary's share will be
separately accounted for. It will be distributed over the beneficiary's own
life expectancy, if payments over life expectancy are chosen.
o The minimum amount that is required in order to elect the beneficiary
continuation option is $5,000 for each beneficiary.
o The beneficiary may make transfers among the investment options but no
additional contributions will be permitted.
o Any minimum death benefit feature will no longer be in effect.
o The beneficiary may choose at any time to withdraw all or a portion of the
account value.
o 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 required 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.
BENEFICIARY CONTINUATION OPTION FOR NQ CONTRACTS ONLY. This feature, also known
as Inherited annuity, may only be elected when the NQ contract owner dies
before the annuity commencement date, whether or not the owner and the
annuitant are the same person. If the owner and annuitant are different and the
owner dies before the annuitant, for purposes of this discussion, "beneficiary"
refers to the successor owner. For a discussion of successor owner, see "When
an NQ contract owner dies before the annuitant" earlier in this section. This
feature must be elected within 9 months following the date of your death and
before any inconsistent election is made. Beneficiaries who do not make a
timely election will not be eligible for this option.
Generally, payments will be made once a year to the beneficiary over the
beneficiary's life expectancy, determined on a term certain basis and in the
year payments start. These payments must begin no later than one year after the
date of your death and are referred to as "scheduled payments." The beneficiary
may choose the "5-year rule" instead of scheduled payments over life
expectancy. If the beneficiary chooses the 5-year rule, there will be no
scheduled payments. Under the 5-year rule, the beneficiary may take withdrawals
as desired, but the entire account value must be fully withdrawn by the fifth
anniversary of your death.
Under the beneficiary continuation option for NQ contracts (regardless of
whether the owner and the annuitant are the same person):
o This feature is only available if the beneficiary is an individual. It is
not available for any entity such as a trust, even if all of the
beneficiaries of the trust are individuals.
36 Payment of death benefit
o The contract continues in your name for the benefit of your beneficiary.
o If there is more than one beneficiary, each beneficiary's share will be
separately accounted for. It will be distributed over the respective
beneficiary's own life expectancy, if scheduled payments are chosen.
o The minimum amount that is required in order to elect the beneficiary
continuation option is $5,000 for each beneficiary.
o The beneficiary may make transfers among the investment options but no
additional contributions will be permitted.
o Any minimum death benefit feature will no longer be in effect.
o If the beneficiary chooses the "5-year rule," withdrawals may be made at any
time. If the beneficiary instead chooses scheduled payments, the beneficiary
must also choose between two potential withdrawal options at the time of
election. If the beneficiary chooses "Withdrawal Option 1", the beneficiary
cannot later withdraw funds in addition to the scheduled payments the
beneficiary is receiving; "Withdrawal Option 1" permits total surrender
only. "Withdrawal Option 2" permits the beneficiary to take withdrawals, in
addition to scheduled payments, at any time. However, the scheduled payments
under "Withdrawal Option 1" are afforded favorable tax treatment as "annuity
payments." See "Taxation of nonqualified annuities" in "Tax Information"
later in this Prospectus.
o Any partial withdrawals must be at least $300.
o Your beneficiary will have the right to name a beneficiary to receive any
remaining interest in the contract on the beneficiary's death.
o Upon the death of your beneficiary, the beneficiary he or she has named has
the option to either continue taking scheduled payments based on the
remaining life expectancy of the deceased beneficiary (if scheduled payments
were chosen) or to receive any remaining interest in the contract in a lump
sum. We will pay any remaining interest in the contract in a lump sum if
your beneficiary elects the 5-year rule. 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.
If you are both the owner and annuitant:
o 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 annuity account value to
equal the applicable death benefit if such death benefit is greater than
such account value.
If the owner and annuitant are not the same person:
o If the beneficiary continuation option is elected, the beneficiary
automatically becomes the new annuitant of the contract, replacing the
existing annuitant.
o The annuity account value will not be reset to the death benefit amount.
If a contract is jointly owned:
o The surviving owner supersedes any other named beneficiary and may elect the
beneficiary continuation option.
o If the deceased joint owner was also the annuitant, see "If you are both the
owner and annuitant" earlier in this section.
o If the deceased joint owner was not the annuitant, see "If the owner and
annuitant are not the same person" earlier in this section.
Payment of death benefit 37
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 Equitable Accumulator(R) Advisor(SM) contracts owned by
United States individual taxpayers. The tax rules can differ, depending on the
type of contract, whether NQ, traditional IRA, Roth IRA or QP. 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
without notice. 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 or values under the contract, or payments under the contract, for
example, amounts due to beneficiaries, may be subject to federal or state gift,
estate, or inheritance 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 which can be made to all types of tax-favored retirement plans.
In addition to increasing amounts which 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 adviser 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 account. Annuity contracts can also be purchased
in connection with retirement 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. More information on IRAs is provided in the SAI. 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 investment funds and fixed maturity options and
choices of pay-out options available in Accumulator(R) Advisor(SM), as well as
the features and benefits of other permissible funding vehicles and the
relative costs of annuities and other arrangements. You should be aware that
cost may vary depending on the features and benefits made available and the
charges and expenses of the investment options or funds that you elect.
Although certain provisions of the Temporary Regulations on required minimum
distributions concerning the actuarial value of additional contract benefits,
which could have increased the amount required to be distributed from annuity
contracts funding qualified plans, TSAs and IRAs have been currently suspended,
these or similar provisions may apply in future years. You may want to discuss
with your tax adviser the potential implication of these Regulations before you
purchase this annuity contract or purchase additional features under this
annuity contract. See also Appendix II for a discussion of QP contracts at the
end of this Prospectus.
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 the 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
38 Tax information
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 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.
This includes withdrawals to pay all or a part of any fee that may be
associated with the fee-based program. See "Withdrawing your account value" in
"Accessing your money" earlier in this Prospectus. 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
Equitable Accumulator(R) Advisor(SM) NQ contract. If you are using a life
insurance or endowment contract the owner and the insured under the life
insurance or endowment contract must be the same as the owner and annuitant,
respectively under the Equitable Accumulator(R) Advisor(SM) contract.
The tax basis, also referred to as your tax basis in the contract, of the
source contract carries over to the Equitable Accumulator(R) Advisor(SM) NQ
contract.
An owner may 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 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.
BENEFICIARY CONTINUATION OPTION
We have received a private letter ruling from the IRS regarding certain tax
consequences of scheduled payments under the beneficiary continuation option
for NQ contracts. See the discussion "Beneficiary continuation option for NQ
contracts only" in "Payment of death benefit" earlier in this Prospectus. Among
other things, the IRS rules that:
o scheduled payments under the beneficiary continuation option for NQ
contracts satisfy the death of owner rules of Section 72(s)(2) of the Code,
regardless of whether the beneficiary elects Withdrawal Option 1 or
Withdrawal Option 2;
o scheduled payments, any additional withdrawals under Withdrawal Option 2, or
contract surrenders under Withdrawal Option 1 will only be taxable to the
beneficiary when amounts are actually paid, regardless of the Withdrawal
Option selected by the beneficiary;
o a beneficiary who irrevocably elects scheduled payments with Withdrawal
Option 1 will receive "excludable amount" tax treatment on scheduled
payments. See "Annuity payments" earlier in this section. If the beneficiary
elects to surrender the contract before all scheduled payments are paid, the
amount received upon surrender is a non-annuity payment taxable to the
extent it exceeds any remaining investment in the contract.
The ruling specifically does not address the taxation of any payments received
by a beneficiary electing Withdrawal Option 2 (whether scheduled payments or
any withdrawal that might be taken). There is no assurance that we will receive
any further rulings addressing the tax consequences of payments under
Withdrawal Option 2. Before electing the beneficiary continuation option
feature, the individuals you designate as beneficiary or successor owner should
discuss with their tax advisers the consequences of such elections.
The tax treatment of a withdrawal after the death of the owner taken as a
single sum or taken as withdrawals under the 5-year rule is generally the same
as the tax treatment of a withdrawal from or surrender of 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
Tax information 39
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, in accordance with IRS formulas.
INVESTOR CONTROL ISSUES
Under certain circumstances, the IRS has stated that you could be treated as
the owner (for tax purposes) of the assets of Separate Accounts 45 and 49. If
you were treated as the owner, you would be taxable on income and gains
attributable to the shares of the underlying portfolios.
The circumstances that would lead to this tax treatment would be that, in the
opinion of the IRS, you could control the underlying investment of Separate
Accounts 45 and 49. Recently, the IRS has said that the owners of variable
annuities will not be treated as owning the separate account assets provided
the underlying portfolios are restricted to variable life and annuity assets.
The variable annuity owners must have the right only to choose among the
portfolios, and must have no right to direct the particular investment
decisions within the portfolios.
Although we believe that, under current IRS guidance, you would not be treated
as the owner of the assets of Separate Accounts 45 and 49, there are some
issues that remain unclear. For example, the IRS has not issued any guidance as
to whether having a larger number of portfolios available, or an unlimited
right to transfer among them, could cause you to be treated as the owner. We do
not know whether the IRS will ever provide such guidance or whether such
guidance, if unfavorable, would apply retroactively to your contract.
Furthermore, the IRS could reverse its current guidance at any time. We reserve
the right to modify your contract as necessary to prevent you from being
treated as the owner of the assets of Separate Accounts 45 and 49.
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 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/or 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; and
o Roth IRAs, 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 (http://www.irs.gov).
Equitable Life designs its IRA contracts to qualify as individual retirement
annuities under Section 408(b) of the Internal Revenue Code. You may purchase
the contract as a traditional IRA ("Rollover IRA") or Roth IRA ("Roth
Conversion IRA"). The SAI contains the information that the IRS requires you to
have before you purchase an IRA. The disclosure generally assumes direct
ownership of the individual retirement annuity contract. For contracts owned in
a custodial individual retirement account, the disclosure will apply only if
you terminate your account or transfer ownership of the contract to yourself.
We have received an opinion letter from the IRS approving the respective forms
of the Equitable Accumulator(R) traditional and Roth IRA contracts, as amended
to reflect recent tax law changes, 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 contracts submitted for IRS approval do not include every
feature possibly available under the Equitable Accumulator(R) traditional and
Roth IRA contracts.
CONTRIBUTIONS
Individuals may make three different types of contributions to an 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 IRAs of the same type
("direct transfers").
40 Tax information
In addition, an individual may make a taxable rollover contribution from a
traditional IRA to a Roth IRA ("conversion" contributions).
Contributions to all types of IRAs are compensation-based. They are either made
from your current compensation or have a connection with past compensation (for
example, rollover contributions from an eligible retirement plan that you had
with an employer relate to past compensation). Under certain circumstances,
your nonworking spouse, former spouse or surviving spouse may contribute to an
IRA. You can make regular contributions for any year to a traditional IRA
within federal tax law limits up until the calendar year you reach the age
70-1/2. Regular contributions for any year to a Roth IRA can be made at any time
during your life, subject to federal tax law limits.
The amount of contributions you may make to an IRA for any year and whether
such contributions are eligible for special tax treatment (for example,
deductibility from income or a special credit) may vary, depending on your
income, age and whether you participate in an employer-sponsored retirement
plan. Roth IRA contributions are not tax deductible. The maximum regular
contribution that can be made to all of your IRAs (whether traditional or Roth)
for the taxable year for which the contribution is made is $3,000 for 2004 and
$4,000 for 2005. The maximum regular contribution is increased to $3,500 for
2004 and $4,500 for 2005 if you are at least age 50 at any time during the
taxable year for which the contribution is made.
Rollover and transfer contributions are not subject to dollar limits. Rollover
contributions may be made to a traditional IRA from "eligible retirement plans"
which include other traditional IRAs, qualified plans, TSAs and governmental
employer 457(b) plans. For Roth IRAs, rollover contributions may be made from
other Roth IRAs and traditional IRAs. The conversion of a traditional IRA to a
Roth IRA is taxable. Direct transfer contributions may only be made directly
from one traditional IRA to another or from one Roth IRA to another.
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 adviser 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.
A more complete discussion of contributions to traditional IRAs and Roth IRAs
is contained in the SAI.
WITHDRAWALS AND DISTRIBUTIONS
You can withdraw any or all of your funds from an IRA at any time; you do not
need to wait for a special event like retirement. Earnings in IRAs are not
subject to federal income tax until amounts are paid to you or your
beneficiary. Withdrawals from an IRA , surrender of an IRA, death benefits from
an IRA and annuity payments from an IRA may be fully or partially taxable.
Withdrawals and distributions from IRAs are taxable as ordinary income (not
capital gain).
Payments from traditional IRAs and Roth IRAs are taxed differently. Payments
from traditional IRAs are generally fully taxable unless you have made
nondeductible regular contributions or rolled over after-tax contributions. In
any event, the issuer of the traditional IRA is entitled to report the
distribution as fully taxable and it is your responsibility to calculate the
taxable and tax-free portions of any traditional IRA payments on your own tax
returns.
Distributions from Roth IRAs generally receive return of contribution treatment
first under federal income tax calculation rules before any income is taxable.
Certain distributions from Roth IRAs may qualify for fully tax-free treatment.
These are distributions after you reach age 59-1/2, die, become disabled or meet
a qualified first-time homebuyer tax rule. You also have to meet a five-year
aging period.
A distribution from a traditional IRA will not be taxable if it is rolled over
to an eligible retirement plan. A distribution from a Roth IRA will not be
taxable if it is rolled over to another Roth IRA.
Taxable withdrawals or distributions from IRAs may be subject to an additional
10% penalty tax if you are under age 59-1/2, unless an exception applies.
Traditional IRAs are subject to required minimum distribution rules which
require that amounts begin to be distributed in a prescribed manner from the
IRA after the owner reaches age 70-1/2. These rules also require distributions
after the owner's death. No distributions are required to be made from Roth
IRAs until after the Roth IRA owner's death, but then the required minimum
distribution rules apply.
A more complete discussion of the tax aspects of withdrawals and distributions
from traditional IRAs and Roth IRAs is contained in the SAI.
SPECIAL RULES FOR CONTRACTS FUNDING QUALIFIED PLANS
For QP contracts, your plan administrator or trustee notifies you as to tax
consequences. See Appendix II at the end of this Prospectus.
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.
Tax information 41
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 $17,280 in periodic annuity payments in
2004, 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), 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.
You cannot elect out of withholding if the payment is an "eligible rollover
distribution" from a qualified plan. If a non-periodic distribution from a
qualified plan is not an "eligible rollover distribution" then the 10%
withholding rate applies.
MANDATORY WITHHOLDING FROM QUALIFIED PLAN DISTRIBUTIONS
Unless you have the distribution go directly to the new plan, eligible rollover
distributions from qualified plans are subject to mandatory 20% withholding.
The plan administrator is responsible for withholding from qualified plan
distributions. An eligible rollover distribution from a qualified plan can be
rolled over to another eligible retirement plan. All distributions from a
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 from service with the employer; 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
o substantially equal periodic payments made for a specified period of 10
years or more; or
o hardship withdrawals; 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.
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 No. 45 and Separate
Account No. 49 for taxes. We do not now, but may in the future set up reserves
for such taxes.
42 Tax information
8. More information
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ABOUT SEPARATE ACCOUNT NO. 45 AND SEPARATE ACCOUNT NO. 49
Each variable investment option is a subaccount of Separate Account No. 49. We
established Separate Account No. 45 in 1994 and Separate Account No. 49 in 1996
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, including these contracts. We are the legal owner of all of the
assets in Separate Account No. 45 and Separate Account No. 49 and may withdraw
any amounts that exceed our reserves and other liabilities with respect to
variable investment options under our contracts. The results of the Separate
Accounts' operations are accounted for without regard to Equitable Life's other
operations.
Each Separate Account 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 the Separate Accounts.
Each subaccount (variable investment option) within the Separate Accounts
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 either Separate Account, 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 each Separate Account 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 each Separate Account or a
variable investment option directly);
(5) to deregister the Separate Accounts under the Investment Company Act of
1940;
(6) to restrict or eliminate any voting rights as to the Separate Accounts 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.
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 the Trusts' portfolio investment objectives,
policies, restrictions, risks, expenses, its Rule 12b-1 Plan, and other aspects
of its operations, appear in the prospectuses for each Trust, which are
attached at the end of this Prospectus, or in the 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.
FMO rates are determined daily. The rates in the table are illustrative only
and will most likely differ from the rates applicable at time of purchase.
Current FMO rates can be obtained from your financial professional.
The rates to maturity for new allocations as of February 13, 2004 and the
related price per $100 of maturity value were as shown below:
- --------------------------------------------------------------
Fixed Maturity
Options with
February 15th Rate to Price
Maturity Date of Maturity as of Per $100 of
Maturity Year February 13, 2004 Maturity Value
- --------------------------------------------------------------
2005 3.00%* $ 97.06
2006 3.00%* $ 94.24
2007 3.00%* $ 91.49
2008 3.00%* $ 88.83
2009 3.00%* $ 86.23
2010 3.07% $ 83.38
2011 3.43% $ 78.94
2012 3.72% $ 74.63
2013 3.95% $ 70.53
2014 4.15% $ 66.55
- --------------------------------------------------------------
* Since these rates to maturity are 3%, no amounts could have been allocated to
these options.
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.
More information 43
(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. 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) 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 0.25% 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 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 CONTRACTS ONLY
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 contract on a monthly or quarterly basis. AIP is not available for
Rollover IRA, Roth Conversion IRA or QP contracts.
The minimum amounts we will deduct are $100 monthly and $300 quarterly. AIP
additional contributions may be allocated to any of the
44 More information
variable investment options and available fixed maturity options. 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 TRANSMITTALS AND ELECTRONIC APPLICATIONS
We accept initial and subsequent contributions sent by wire to our processing
office by agreement with certain broker-dealers. Such transmittals must be
accompanied by information we require to allocate your contribution. Wire
orders not accompanied by complete information may be retained as described in
"How you can make your contributions" under "Contract features and benefits"
earlier in this Prospectus.
Even if we accept the wire order and essential information, a contract
generally will not be issued until we receive and accept a properly completed
application. In certain cases we may issue a contract based on information
provided through certain broker-dealers with which we have established
electronic facilities. In any such cases, you must sign our Acknowledgment of
Receipt form.
Where we require a signed application, the above procedures do not apply and no
financial transactions will be permitted until we receive the signed
application and have issued the contract. Where we issue a contract based on
information provided through electronic facilities, we require an
Acknowledgment of Receipt form, and financial transactions are only permitted
if you request them in writing, sign the request and have it signature
guaranteed, until we receive the signed Acknowledgment of Receipt form. After
your contract has been issued, additional contributions may be transmitted by
wire.
In general, the transaction date for electronic transmissions is the date on
which we receive at our regular processing office all required information and
the funds due for your contribution. We may also establish same-day electronic
processing facilities with a broker-dealer that has undertaken to pay
contribution amounts on behalf of its customers. In such cases, the transaction
date for properly processed orders is the business day on which the
broker-dealer inputs all required information into its electronic processing
system. You can contact us to find out more about such arrangements.
After your contract has been issued, additional contributions may be
transmitted by wire.
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. on a business day, we will use the next business day.
o A loan request under your Rollover TSA contract will be processed on the
first business day of the month following the date on which the properly
completed loan request form is received.
o If your transaction is set to occur on the same day of the month as the
contract date and that date is the 29th, 30th or 31st of the month, then the
transaction will occur on the 1st day of the next month.
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 If we have entered into an agreement with your broker-dealer for automated
processing of contributions upon receipt of customer order, your
contribution will be considered received at the time your broker-dealer
receives your contribution and all information needed to process your
application, along with any required documents, and transmits your order to
us in accordance with our processing procedures. Such arrangements may apply
to initial contributions, subsequent contributions, or both, and may be
commenced or terminated at any time without prior notice. If required by
law, the "closing time" for such orders will be earlier than 4 p.m., Eastern
Time.
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 Transfers to or from variable investment options will be made at the unit
value next determined after the close of the business day.
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;
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.
More information 45
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 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 NO. 45 AND SEPARATE ACCOUNT NO. 49 VOTING RIGHTS
If actions relating to the Separate Accounts 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 No. 45 or Separate Account No. 49, our ability to meet
our obligations under the contracts, or the distribution of the contracts.
ABOUT OUR INDEPENDENT AUDITORS
The consolidated financial statements of Equitable Life at December 31, 2003
and 2002, and for the three years ended December 31, 2003, incorporated in this
Prospectus by reference to the 2003 Annual Report on Form 10-K are incorporated
in reliance on the report of PricewaterhouseCoopers LLP, independent auditors,
given on the authority of said firm as experts in auditing and accounting.
FINANCIAL STATEMENTS
The financial statements of Separate Account No. 45 and Separate Account No.
49, as well as the consolidated financial statements of Equitable Life, are in
the applicable SAI. The SAI is available free of charge. You may request one by
writing to our processing office or calling 1-800-789-7771.
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
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.
Loans are not available and you cannot assign IRA contracts as security for a
loan or other obligation. If your individual retirement annuity contract is
held in your custodial individual retirement account, you may only assign or
transfer ownership of such an IRA contract to yourself.
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 IRA contract to another
similar arrangement under federal income tax rules.
DISTRIBUTION OF THE CONTRACTS
The contracts are distributed by both AXA Advisors, LLC and AXA Distributors,
LLC. For this purpose, AXA Advisors, LLC serves as the principal underwriter of
Separate Account No. 45 and AXA Distributors, LLC serves as the principal
underwriter of Separate Account No. 49. The offering of the contracts is
intended to be continuous.
DISTRIBUTION OF THE CONTRACTS BY AXA ADVISORS, LLC
AXA Advisors, LLC ("AXA Advisors"), the successor to EQ Financial Consultants,
Inc. and an affiliate of Equitable Life, has responsibility for sales and
marketing functions for the contracts funded through Separate Account No. 45.
AXA Advisors also acts as distributor for other Equitable Life annuity products
with different features, expenses and fees. 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, New York 10104.
These contracts will be sold by financial professionals who are financial
professionals of AXA Advisors and its affiliates, who are also our licensed
insurance agents.
46 More information
DISTRIBUTION OF THE CONTRACTS BY AXA DISTRIBUTORS, LLC
AXA Distributors, LLC ("AXA Distributors"), an indirect, wholly owned
subsidiary of Equitable Life, has responsibility for sales and marketing
functions for contracts funded through Separate Account No. 49. AXA
Distributors also acts as distributor for other Equitable Life annuity products
with different features, expenses, and fees. AXA Distributors is registered
with the SEC as a broker-dealer and is a member of the National Association of
Securities Dealers, Inc. AXA Distributors' principal business address is 1290
Avenue of the Americas, New York, New York 10104.
AXA Distributors is the successor by merger to all of the functions, rights and
obligations of Equitable Distributors, Inc. Like AXA Distributors, Equitable
Distributors, Inc. was owned by Equitable Holdings, LLC.
These contracts are sold by financial professionals of AXA Distributors, as
well as by affiliated and unaffiliated broker-dealers who have entered into
selling agreements with AXA Distributors.
We pay broker-dealer sales compensation that will generally not exceed 7.0% of
the total contributions made under the contracts. Broker-dealers receiving
sales compensation will generally pay a portion of it to their financial
representatives as commissions related to the sales of the contracts. AXA
Distributors may also receive compensation and reimbursement for its marketing
services under the terms of its distribution agreement with Equitable Life, as
well as payments from portfolio advisers for sales meetings and/or seminar
sponsorships.
Equitable and/or AXA Distributors and/or AXA Advisors may use their respective
past profits or other resources to pay brokers and other financial
intermediaries for certain expenses they incur in providing services intended
to promote the sales of our products and/or shares in the underlying Trusts.
These services may include sales personnel training, prospectus review,
marketing and related services as well as support services that benefit
contract owners.
Similarly, in an effort to promote the sale of our products, AXA Advisors may
provide its financial professionals and managerial personnel with a higher
percentage of sales commissions and/or more compensation for the sale of an
Equitable variable product than it would for the sale of another product. Such
practice is known as providing differential compensation. Other forms of
compensation financial professionals may receive include health and retirement
benefits, credits towards stock options awards and rewards for sales incentive
campaigns. In addition, managerial personnel may receive expense
reimbursements, marketing allowances and so called "overrides." In part for tax
reasons, AXA Advisors financial professionals and managerial personnel qualify
for health and retirement benefits based on their sales of our variable
products.
These payments and differential compensation (together, "payments") can vary in
amount based on the applicable product and/or entity or individual involved. As
with any incentive, such payments may cause the recipient to show preference in
recommending the purchase or sale of our products. However, under applicable
rules of the National Association of Securities Dealers, Inc., AXA Advisors
financial professionals may only recommend to you products that they reasonably
believe are suitable for you based on facts that you have disclosed as to your
other security holdings, financial situation and needs. In making any
recommendation, financial professionals may nonetheless face conflicts of
interest because of the differences in compensation from one product category
to another, and because of differences in compensation between products in the
same category. Although Equitable takes all of its costs into account in
establishing the level of fees and expenses in our products, payments made will
not result in any separate charge to you under your contract.
More information 47
9. Incorporation of certain documents by reference
- --------------------------------------------------------------------------------
Equitable Life's annual report on Form 10-K for the year ended December 31,
2003, 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 Report 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).
48 Incorporation of certain documents by reference
Appendix I: Condensed financial information
- --------------------------------------------------------------------------------
The unit values and number of units outstanding shown below are for contracts
offered under Separate Accounts 45 and 49 with the same daily asset charges of
0.50%.
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, 2003
- -----------------------------------------------------------------------------------------------------------
For the years ending December 31,
-----------------------------------------------
2003 2002 2001 2000
- -----------------------------------------------------------------------------------------------------------
AXA Moderate Allocation
- -----------------------------------------------------------------------------------------------------------
Unit value $ 48.11 $ 40.59 $ 46.74 --
- -----------------------------------------------------------------------------------------------------------
Separate Account 45 number of units outstanding (000's) 1 3 3 --
- -----------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) -- -- -- --
- -----------------------------------------------------------------------------------------------------------
AXA Premier VIP Aggressive Equity
- -----------------------------------------------------------------------------------------------------------
Unit value $ 56.83 $ 41.54 $ 58.69 $ 78.83
- -----------------------------------------------------------------------------------------------------------
Separate Account 45 number of units outstanding (000's) -- -- -- --
- -----------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) -- -- -- --
- -----------------------------------------------------------------------------------------------------------
AXA Premier VIP Core Bond
- -----------------------------------------------------------------------------------------------------------
Unit value $ 11.11 $ 10.76 -- --
- -----------------------------------------------------------------------------------------------------------
Separate Account 45 number of units outstanding (000's) 1 2 -- --
- -----------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) -- -- -- --
- -----------------------------------------------------------------------------------------------------------
AXA Premier VIP Health Care
- -----------------------------------------------------------------------------------------------------------
Unit value $ 10.16 $ 7.97 -- --
- -----------------------------------------------------------------------------------------------------------
Separate Account 45 number of units outstanding (000's) -- -- -- --
- -----------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) -- -- -- --
- -----------------------------------------------------------------------------------------------------------
AXA Premier VIP High Yield
- -----------------------------------------------------------------------------------------------------------
Unit value $ 31.80 $ 26.08 $ 27.00 $ 26.95
- -----------------------------------------------------------------------------------------------------------
Separate Account 45 number of units outstanding (000's) 2 2 2 --
- -----------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) -- -- -- --
- -----------------------------------------------------------------------------------------------------------
AXA Premier VIP International Equity
- -----------------------------------------------------------------------------------------------------------
Unit value $ 10.52 $ 7.87 -- --
- -----------------------------------------------------------------------------------------------------------
Separate Account 45 number of units outstanding (000's) -- 1 -- --
- -----------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) -- -- -- --
- -----------------------------------------------------------------------------------------------------------
AXA Premier VIP Large Cap Core Equity
- -----------------------------------------------------------------------------------------------------------
Unit value $ 9.83 $ 7.71 -- --
- -----------------------------------------------------------------------------------------------------------
Separate Account 45 number of units outstanding (000's) 1 2 -- --
- -----------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) -- -- -- --
- -----------------------------------------------------------------------------------------------------------
AXA Premier VIP Large Cap Growth
- -----------------------------------------------------------------------------------------------------------
Unit value $ 8.90 $ 6.84 -- --
- -----------------------------------------------------------------------------------------------------------
Separate Account 45 number of units outstanding (000's) 2 3 -- --
- -----------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) -- -- -- --
- -----------------------------------------------------------------------------------------------------------
AXA Premier VIP Large Cap Value
- -----------------------------------------------------------------------------------------------------------
Unit value $ 10.40 $ 7.98 -- --
- -----------------------------------------------------------------------------------------------------------
Separate Account 45 number of units outstanding (000's) -- -- -- --
- -----------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) -- -- -- --
- -----------------------------------------------------------------------------------------------------------
AXA Premier VIP Small/Mid Cap Growth
- -----------------------------------------------------------------------------------------------------------
Unit value $ 8.72 $ 6.25 -- --
- -----------------------------------------------------------------------------------------------------------
Separate Account 45 number of units outstanding (000's) 1 3 -- --
- -----------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) -- -- -- --
- -----------------------------------------------------------------------------------------------------------
Appendix I: Condensed financial information A-1
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, 2003 (CONTINUED)
- ------------------------------------------------------------------------------------------------------------
For the years ending December 31,
------------------------------------------------
2003 2002 2001 2000
- ------------------------------------------------------------------------------------------------------------
AXA Premier VIP Small/Mid Cap Value
- ------------------------------------------------------------------------------------------------------------
Unit value $ 10.40 $ 7.43 -- --
- ------------------------------------------------------------------------------------------------------------
Separate Account 45 number of units outstanding (000's) -- 1 -- --
- ------------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) -- -- -- --
- ------------------------------------------------------------------------------------------------------------
AXA Premier VIP Technology
- ------------------------------------------------------------------------------------------------------------
Unit value $ 8.96 $ 5.71 -- --
- ------------------------------------------------------------------------------------------------------------
Separate Account 45 number of units outstanding (000's) -- -- -- --
- ------------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) -- -- -- --
- ------------------------------------------------------------------------------------------------------------
EQ/Alliance Common Stock
- ------------------------------------------------------------------------------------------------------------
Unit value $ 268.33 $ 180.32 $ 271.84 $ 306.09
- ------------------------------------------------------------------------------------------------------------
Separate Account 45 number of units outstanding (000's) 7 7 -- --
- ------------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) -- -- -- --
- ------------------------------------------------------------------------------------------------------------
EQ/Alliance Growth and Income
- ------------------------------------------------------------------------------------------------------------
Unit value $ 27.85 $ 21.46 $ 27.40 --
- ------------------------------------------------------------------------------------------------------------
Separate Account 45 number of units outstanding (000's) 6 5 4 --
- ------------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) -- -- -- --
- ------------------------------------------------------------------------------------------------------------
EQ/Alliance Intermediate Government Securities
- ------------------------------------------------------------------------------------------------------------
Unit value $ 20.69 $ 20.36 $ 18.84 --
- ------------------------------------------------------------------------------------------------------------
Separate Account 45 number of units outstanding (000's) 4 10 8 --
- ------------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) -- -- -- --
- ------------------------------------------------------------------------------------------------------------
EQ/Alliance International
- ------------------------------------------------------------------------------------------------------------
Unit value $ 12.29 $ 9.14 $ 10.22 --
- ------------------------------------------------------------------------------------------------------------
Separate Account 45 number of units outstanding (000's) 5 4 3 --
- ------------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) -- -- -- --
- ------------------------------------------------------------------------------------------------------------
EQ/Alliance Premier Growth
- ------------------------------------------------------------------------------------------------------------
Unit value $ 6.12 $ 4.99 $ 7.29 $ 9.63
- ------------------------------------------------------------------------------------------------------------
Separate Account 45 number of units outstanding (000's) 1 4 3 --
- ------------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) -- -- -- --
- ------------------------------------------------------------------------------------------------------------
EQ/Quality Bond
- ------------------------------------------------------------------------------------------------------------
Unit value $ 16.96 $ 16.46 -- --
- ------------------------------------------------------------------------------------------------------------
Separate Account 45 number of units outstanding (000's) 6 6 -- --
- ------------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) -- -- -- --
- ------------------------------------------------------------------------------------------------------------
EQ/Alliance Small Cap Growth
- ------------------------------------------------------------------------------------------------------------
Unit value $ 14.47 $ 10.32 $ 14.86 $ 17.22
- ------------------------------------------------------------------------------------------------------------
Separate Account 45 number of units outstanding (000's) 4 11 4 --
- ------------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) -- -- -- --
- ------------------------------------------------------------------------------------------------------------
EQ/Bernstein Diversified Value
- ------------------------------------------------------------------------------------------------------------
Unit value $ 13.56 $ 10.58 $ 12.31 $ 12.01
- ------------------------------------------------------------------------------------------------------------
Separate Account 45 number of units outstanding (000's) 6 15 10 --
- ------------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) -- -- -- --
- ------------------------------------------------------------------------------------------------------------
EQ/Calvert Socially Responsible
- ------------------------------------------------------------------------------------------------------------
Unit value $ 8.25 $ 6.48 $ 8.85 --
- ------------------------------------------------------------------------------------------------------------
Separate Account 45 number of units outstanding (000's) -- -- -- --
- ------------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) -- -- -- --
- ------------------------------------------------------------------------------------------------------------
EQ/Capital Guardian International
- ------------------------------------------------------------------------------------------------------------
Unit value $ 9.92 $ 7.52 $ 8.90 $ 11.30
- ------------------------------------------------------------------------------------------------------------
Separate Account 45 number of units outstanding (000's) -- -- -- --
- ------------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) -- -- -- --
- ------------------------------------------------------------------------------------------------------------
EQ/Capital Guardian Research
- ------------------------------------------------------------------------------------------------------------
Unit value $ 10.76 $ 8.22 $ 10.97 $ 11.25
- ------------------------------------------------------------------------------------------------------------
Separate Account 45 number of units outstanding (000's) -- 6 -- --
- ------------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) -- -- -- --
- ------------------------------------------------------------------------------------------------------------
A-2 Appendix I: Condensed financial information
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, 2003 (CONTINUED)
- ----------------------------------------------------------------------------------------------------------
For the years ending December 31,
----------------------------------------------
2003 2002 2001 2000
- ----------------------------------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------------------
EQ/Capital Guardian U. S. Equity
- ----------------------------------------------------------------------------------------------------------
Unit value $ 10.71 $ 7.89 $ 10.39 $ 10.66
- ----------------------------------------------------------------------------------------------------------
Separate Account 45 number of units outstanding (000's) 17 13 1 --
- ----------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) -- -- -- --
- ----------------------------------------------------------------------------------------------------------
EQ/Emerging Markets Equity
- ----------------------------------------------------------------------------------------------------------
Unit value $ 9.21 $ 5.94 $ 6.34 $ 6.72
- ----------------------------------------------------------------------------------------------------------
Separate Account 45 number of units outstanding (000's) 11 11 2 --
- ----------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) -- -- -- --
- ----------------------------------------------------------------------------------------------------------
EQ/Equity 500 Index
- ----------------------------------------------------------------------------------------------------------
Unit value $ 25.65 $ 20.16 $ 26.11 $ 29.88
- ----------------------------------------------------------------------------------------------------------
Separate Account 45 number of units outstanding (000's) 62 62 1 --
- ----------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) -- -- -- --
- ----------------------------------------------------------------------------------------------------------
EQ/Evergreen Omega
- ----------------------------------------------------------------------------------------------------------
Unit value $ 8.23 $ 5.99 $ 7.92 --
- ----------------------------------------------------------------------------------------------------------
Separate Account 45 number of units outstanding (000's) -- -- -- --
- ----------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) -- -- -- --
- ----------------------------------------------------------------------------------------------------------
EQ/FI Mid Cap
- ----------------------------------------------------------------------------------------------------------
Unit value $ 10.01 $ 7.01 $ 8.64 $ 10.03
- ----------------------------------------------------------------------------------------------------------
Separate Account 45 number of units outstanding (000's) 576 582 6 --
- ----------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) -- -- -- --
- ----------------------------------------------------------------------------------------------------------
EQ/FI Small/Mid Cap Value
- ----------------------------------------------------------------------------------------------------------
Unit value $ 13.12 $ 9.89 $ 11.66 $ 11.27
- ----------------------------------------------------------------------------------------------------------
Separate Account 45 number of units outstanding (000's) 407 416 13 --
- ----------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) -- -- -- --
- ----------------------------------------------------------------------------------------------------------
EQ/J.P. Morgan Core Bond
- ----------------------------------------------------------------------------------------------------------
Unit value $ 14.19 $ 13.80 $ 12.65 $ 11.78
- ----------------------------------------------------------------------------------------------------------
Separate Account 45 number of units outstanding (000's) 1 1 -- --
- ----------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) -- -- -- --
- ----------------------------------------------------------------------------------------------------------
EQ/Janus Large Cap Growth
- ----------------------------------------------------------------------------------------------------------
Unit value $ 5.60 $ 4.47 $ 6.45 $ 8.42
- ----------------------------------------------------------------------------------------------------------
Separate Account 45 number of units outstanding (000's) 11 13 10 --
- ----------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) -- -- -- --
- ----------------------------------------------------------------------------------------------------------
EQ/Lazard Small Cap Value
- ----------------------------------------------------------------------------------------------------------
Unit value 15,15 $ 11.08 $ 12.93 $ 11.04
- ----------------------------------------------------------------------------------------------------------
Separate Account 45 number of units outstanding (000's) 16 7 -- --
- ----------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) -- -- -- --
- ----------------------------------------------------------------------------------------------------------
EQ/Marsico Focus
- ----------------------------------------------------------------------------------------------------------
Unit value $ 13.06 $ 10.01 $ 11.37 --
- ----------------------------------------------------------------------------------------------------------
Separate Account 45 number of units outstanding (000's) 3 2 -- --
- ----------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) -- -- -- --
- ----------------------------------------------------------------------------------------------------------
EQ/Mercury Basic Value Equity
- ----------------------------------------------------------------------------------------------------------
Unit value $ 19.38 $ 14.84 $ 17.90 --
- ----------------------------------------------------------------------------------------------------------
Separate Account 45 number of units outstanding (000's) 187 185 1 --
- ----------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) -- -- -- --
- ----------------------------------------------------------------------------------------------------------
EQ/Mercury International Value
- ----------------------------------------------------------------------------------------------------------
Unit value $ 14.90 $ 11.70 $ 14.10 $ 18.06
- ----------------------------------------------------------------------------------------------------------
Separate Account 45 number of units outstanding (000's) -- 8 -- --
- ----------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) -- -- -- --
- ----------------------------------------------------------------------------------------------------------
EQ/MFS Emerging Growth Companies
- ----------------------------------------------------------------------------------------------------------
Unit value $ 12.58 $ 9.77 $ 14.96 $ 22.79
- ----------------------------------------------------------------------------------------------------------
Separate Account 45 number of units outstanding (000's) -- -- -- --
- ----------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) -- -- -- --
- ----------------------------------------------------------------------------------------------------------
Appendix I: Condensed financial information A-3
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, 2003 (CONTINUED)
- ---------------------------------------------------------------------------------------------------------
For the years ending December 31,
---------------------------------------------
2003 2002 2001 2000
- ---------------------------------------------------------------------------------------------------------
EQ/MFS Investors Trust
- ---------------------------------------------------------------------------------------------------------
Unit value $ 8.53 $ 7.02 $ 8.94 $ 10.69
- ---------------------------------------------------------------------------------------------------------
Separate Account 45 number of units outstanding (000's) 21 13 2 --
- ---------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) -- -- -- --
- ---------------------------------------------------------------------------------------------------------
EQ/Money Market
- ---------------------------------------------------------------------------------------------------------
Unit value $ 34.36 $ 34.34 $ 34.09 $ 33.08
- ---------------------------------------------------------------------------------------------------------
Separate Account 45 number of units outstanding (000's) 2 1 19 --
- ---------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) -- -- 124 --
- ---------------------------------------------------------------------------------------------------------
EQ/Putnam Growth & Income Value
- ---------------------------------------------------------------------------------------------------------
Unit value $ 12.78 $ 10.13 $ 12.57 $ 13.56
- ---------------------------------------------------------------------------------------------------------
Separate Account 45 number of units outstanding (000's) -- -- -- --
- ---------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) -- -- -- --
- ---------------------------------------------------------------------------------------------------------
EQ/Putnam Voyager
- ---------------------------------------------------------------------------------------------------------
Unit value $ 12.14 $ 9.84 $ 13.43 $ 17.87
- ---------------------------------------------------------------------------------------------------------
Separate Account 45 number of units outstanding (000's) 1 1 -- --
- ---------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) -- -- -- --
- ---------------------------------------------------------------------------------------------------------
EQ/Small Company Index
- ---------------------------------------------------------------------------------------------------------
Unit value $ 13.02 $ 8.97 $ 11.40 $ 11.22
- ---------------------------------------------------------------------------------------------------------
Separate Account 45 number of units outstanding (000's) 1 1 1 --
- ---------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) -- -- -- --
- ---------------------------------------------------------------------------------------------------------
EQ/Technology
- ---------------------------------------------------------------------------------------------------------
Unit value $ 4.21 $ 2.95 $ 5.00 $ 6.65
- ---------------------------------------------------------------------------------------------------------
Separate Account 45 number of units outstanding (000's) 29 37 9 --
- ---------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) -- -- -- --
- ---------------------------------------------------------------------------------------------------------
A-4 Appendix I: Condensed financial information
Appendix II: Purchase considerations for QP contracts
- --------------------------------------------------------------------------------
Trustees who are considering the purchase of an Equitable Accumulator(R)
Advisor(SM) QP contract in conjunction with a fee-based program should discuss
with their tax advisers whether this is an appropriate investment vehicle for
the employer's plan. Trustees should consider whether the plan provisions permit
the investment of plan assets in the QP contract, the distribution of such an
annuity and the payment of death benefits in accordance with the requirements of
the federal income tax rules. The QP contract and this Prospectus should be
reviewed in full, and the following factors, among others, should be noted.
Assuming continued plan qualification and operation, earnings on qualified plan
assets will accumulate value on a tax-deferred basis even if the plan is not
funded by the Equitable Accumulator(R) Advisor(SM) QP contract or another
annuity. Therefore, you should purchase an Equitable Accumulator(R) Advisor(SM)
QP contract to fund a plan for the contract's features and benefits other than
tax deferral, after considering the relative costs and benefits of annuity
contracts and other types of arrangements and funding vehicles. This QP contract
accepts transfer contributions only and not regular, ongoing payroll
contributions. For 401(k) plans under defined contribution plans, no employee
after-tax contributions are accepted.
We will not accept defined benefit plans. For defined contribution plans, we
will only accept transfers from another defined contribution plan or a change
of investment vehicles in the plan. Only one additional transfer contribution
may be made per contract year. If overfunding of a plan occurs or amounts
attributable to an excess contribution must be withdrawn, withdrawals from the
QP contract may be required. A market value adjustment may apply.
Further, Equitable Life will not perform or provide any plan recordkeeping
services with respect to the QP contracts. The plan's administrator will be
solely responsible for performing or providing for all such services. There is
no loan feature offered under the QP contracts, so if the plan provides for
loans and a participant/ employee takes a loan from the plan, other plan assets
must be used as the source of the loan and any loan repayments must be credited
to other investment vehicles and/or accounts available under the plan.
Given that required minimum distributions must generally commence from the plan
for annuitants after age 70-1/2, trustees should consider that:
o the QP contract may not be an appropriate purchase for annuitants
approaching or over age 70-1/2; and,
o although certain provisions of the Temporary Regulations on required minimum
distributions which would have required that the actuarial value of
additional annuity contract benefits be added to the dollar amount credited
for purposes of calculating required minimum distributions have currently
been suspended, these or similar provisions may apply in future years, and
could increase the amounts required to be distributed from the contract.
Finally, because the method of purchasing the QP contract, including the large
initial contribution, and the features of the QP contract may appeal more to
plan participants/employees who are older and tend to be highly paid, and
because certain features of the QP contract are available only to plan
participants/employees who meet certain minimum and/or maximum age
requirements, plan trustees should discuss with their advisers whether the
purchase of the QP contract would cause the plan to engage in prohibited
discrimination in contributions, benefits or otherwise.
Appendix II: Purchase considerations for QP contracts B-1
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 was allocated
on February 13, 2004 to a fixed maturity option with a maturity date of
February 15, 2013 (nine years later) at a hypothetical rate to maturity of
7.00%, resulting in a maturity value at the maturity date of $183,846 on the
maturity date. We further assume that a withdrawal of $50,000 is made four
years later on February 13, 2009.
- ---------------------------------------------------------------------------------------------------------
Hypothetical assumed rate to maturity on February 15, 2009
- ---------------------------------------------------------------------------------------------------------
5.00% 9.00%
- ---------------------------------------------------------------------------------------------------------
As of February 15, 2009 (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 February 15, 2009 (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 portion of 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 portion of a positive
market value adjustment is realized.
C-1 Appendix III: Market value adjustment example
Statement of additional information
- --------------------------------------------------------------------------------
TABLE OF CONTENTS
Page
Tax Information 2
Unit Values 11
Equitable Life's Pending Name Change 12
Custodian and Independent Auditors 12
Distribution of the Contracts 12
Financial Statements 12
How to obtain an Equitable Accumulator(R) Advisor(SM) Statement of Additional
Information for Separate Account No. 45 and Separate Account No. 49
Send this request form to:
Equitable Accumulator(R) Advisor(SM)
P.O. Box 1547
Secaucus, NJ 07096-1547
- --------------------------------------------------------------------------------
Please send me an Equitable Accumulator(R) Advisor(SM) SAI dated May 1, 2004.
- --------------------------------------------------------------------------------
Name
- --------------------------------------------------------------------------------
Address
- --------------------------------------------------------------------------------
City State Zip
(SAI 9AMLF (5/03))
x00690/Advisor
Equitable Accumulator(R) Plus(SM)
A combination variable and fixed deferred annuity contract
PROSPECTUS DATED MAY 1, 2004
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. You should read the prospectuses for each
Trust, which contain important information about the portfolios.
- --------------------------------------------------------------------------------
WHAT IS THE EQUITABLE ACCUMULATOR(R) PLUS(SM)?
Equitable Accumulator(R) Plus(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 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, the guaranteed interest option or fixed maturity options ("investment
options"). This contract may not currently be available in all states. Certain
features and benefits described in this Prospectus may vary in your state; all
features and benefits may not be available in all contracts or all states.
- --------------------------------------------------------------------------------
Variable investment options
- --------------------------------------------------------------------------------
o AXA Aggressive Allocation(1) o EQ/Bernstein Diversified Value
o AXA Conservative Allocation(1) o EQ/Calvert Socially Responsible
o AXA Conservative-Plus Allocation(1) o EQ/Capital Guardian International
o AXA Moderate Allocation(1) o EQ/Capital Guardian Research
o AXA Moderate-Plus Allocation(1) o EQ/Capital Guardian U.S. Equity
o AXA Premier VIP Aggressive Equity o EQ/Emerging Markets Equity
o AXA Premier VIP Core Bond o EQ/Equity 500 Index
o AXA Premier VIP Health Care o EQ/Evergreen Omega
o AXA Premier VIP High Yield o EQ/FI Mid Cap
o AXA Premier VIP International Equity o EQ/FI Small/Mid Cap Value
o AXA Premier VIP Large Cap Core o EQ/J.P. Morgan Core Bond
Equity o EQ/Janus Large Cap Growth
o AXA Premier VIP Large Cap Growth o EQ/Lazard Small Cap Value
o AXA Premier VIP Large Cap Value o EQ/Marsico Focus
o AXA Premier VIP Small/Mid Cap o EQ/Mercury Basic Value Equity
Growth o EQ/Mercury International Value
o AXA Premier VIP Small/Mid Cap Value o EQ/MFS Emerging Growth Companies
o AXA Premier VIP Technology o EQ/MFS Investors Trust
o EQ/Alliance Common Stock o EQ/Money Market
o EQ/Alliance Growth and Income o EQ/Putnam Growth & Income Value
o EQ/Alliance Intermediate Government o EQ/Putnam Voyager
Securities o EQ/Small Company Index
o EQ/Alliance International o EQ/Technology(2)
o EQ/Alliance Premier Growth o Laudus Rosenberg VIT Value Long/
o EQ/Alliance Quality Bond Short Equity(3)
o EQ/Alliance Small Cap Growth o U.S. Real Estate -- Class II
- --------------------------------------------------------------------------------
(1) The "AXA Allocation" portfolio.
(2) Subject to shareholder approval, on or about May 14, 2004, we anticipate
that the EQ/Technology investment option (the "replaced option"), which
invests in a corresponding portfolio of EQ Advisors Trust, will be merged
into the AXA Premier VIP Technology investment option (the "surviving
option"), which invests in a corresponding portfolio of AXA Premier VIP
Trust. At that time, we will move the assets in the replaced option into
the surviving option and all allocation elections to the replaced option
will be considered allocations to the surviving option.
(3) Formerly named "AXA Rosenberg VIT Value Long/Short Equity."
You may allocate amounts to any of the variable investment options. Each
variable investment option is a subaccount of Separate Account No. 49. Each
variable investment option, in turn, invests in a corresponding securities
portfolio of EQ Advisors Trust, AXA Premier VIP Trust. The Universal
Institutional Funds, Inc. or Barr Rosenberg Variable Insurance 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 ("Rollover
IRA") or Roth IRA ("Roth Conversion IRA").
o An annuity that is an investment vehicle for a qualified defined contribution
plan ("QP").
o An Internal Revenue Code Section 403(b) Tax-Sheltered Annuity ("TSA") --
("Rollover TSA").
A contribution of at least $10,000 is required to purchase a contract. We add
an amount ("credit") to your contract with each contribution you make. Expenses
for this contract may be higher than for a comparable contract without a
credit. Over time, the amount of the credit may be more than offset by fees and
charges associated with the credit.
A registration statement relating to this offering has been filed with the
Securities and Exchange Commission ("SEC"). The statement of additional
information ("SAI") dated May 1, 2004, is part of the registration statement.
The SAI is available free of charge. You may request one by writing to our
processing office or calling 1-800-789-7771. 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.
X00675/Plus/ML '02 Series
Contents of this Prospectus
- --------------------------------------------------------------------
EQUITABLE ACCUMULATOR(R) PLUS(SM)
- --------------------------------------------------------------------------------
Index of key words and phrases 4
Who is Equitable Life? 5
How to reach us 6
Equitable Accumulator(R) Plus(SM) at a glance -- key features 8
- --------------------------------------------------------------------------------
FEE TABLE 11
- --------------------------------------------------------------------------------
Example 14
Condensed financial information 17
- --------------------------------------------------------------------------------
1. CONTRACT FEATURES AND BENEFITS 18
- --------------------------------------------------------------------------------
How you can purchase and contribute to your contract 18
Owner and annuitant requirements 20
How you can make your contributions 20
What are your investment options under the contract? 20
Allocating your contributions 26
Credits 27
Your benefit base 28
Annuity purchase factors 28
Our Living Benefit option 29
Guaranteed minimum death benefit 30
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
Termination of your contract 32
- --------------------------------------------------------------------------------
3. TRANSFERRING YOUR MONEY AMONG THE INVESTMENT OPTIONS 33
- --------------------------------------------------------------------------------
Transferring your account value 33
Disruptive transfer activity 33
Rebalancing your account value 34
- ----------------------
"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
- --------------------------------------------------------------------------------
4. ACCESSING YOUR MONEY 35
- --------------------------------------------------------------------------------
Withdrawing your account value 35
How withdrawals are taken from your account value 36
How withdrawals affect your guaranteed
minimum income benefit and guaranteed
minimum death benefit 36
Loans under rollover TSA contracts 36
Surrendering your contract to receive its cash value 37
When to expect payments 37
Your annuity payout options 37
- --------------------------------------------------------------------------------
5. CHARGES AND EXPENSES 40
- --------------------------------------------------------------------------------
Charges that Equitable Life deducts 40
Charges that the Trusts deduct 42
Group or sponsored arrangements 42
Other distribution arrangements 42
- --------------------------------------------------------------------------------
6. PAYMENT OF DEATH BENEFIT 43
- --------------------------------------------------------------------------------
Your beneficiary and payment of benefit 43
How death benefit payment is made 43
Beneficiary continuation option 44
- --------------------------------------------------------------------------------
7. TAX INFORMATION 46
- --------------------------------------------------------------------------------
Overview 46
Buying a contract to fund a retirement arrangement 46
Transfers among variable investment options 46
Taxation of nonqualified annuities 46
Individual retirement arrangements (IRAs) 48
Special rules for contracts funding qualified plans 50
Tax Sheltered Annuity contracts (TSAs) 50
Federal and state income tax withholding and information
reporting 51
Impact of taxes to Equitable Life 52
- --------------------------------------------------------------------------------
8. MORE INFORMATION 53
- --------------------------------------------------------------------------------
About Separate Account No. 49 53
About the Trusts 53
About our fixed maturity options 53
About the general account 54
About other methods of payment 54
Dates and prices at which contract events occur 55
About your voting rights 55
About legal proceedings 56
About our independent auditors 56
Financial statements 56
Transfers of ownership, collateral assignments, loans
and borrowing 56
Distribution of the contracts 56
- --------------------------------------------------------------------------------
9. INCORPORATION OF CERTAIN DOCUMENTS BY REFERENCE 58
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
APPENDICES
- --------------------------------------------------------------------------------
I -- Condensed financial information A-1
II -- Purchase considerations for QP contracts B-1
III -- Market value adjustment example C-1
IV -- Guaranteed enhanced death benefit example D-1
V -- Hypothetical illustrations E-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 32
administrative charge 40
annual administrative charge 40
annual ratchet death benefit 28
annuitant 18
annuity maturity date 39
annuity payout options 37
annuity purchase factors 28
automatic investment program 56
beneficiary 43
Beneficiary Continuation Option ("BCO") 44
benefit base 28
business day 55
cash value 32
charges for state premium and other applicable taxes 42
contract date 9
contract date anniversary 9
contract year 9
contributions to Traditional IRAs 49
regular contributions 49
rollovers and transfers 49
credit 27
disability, terminal illness or confinement to nursing home 41
disruptive transfer activity 33
distribution charge 40
EQAccess 6
ERISA 36
Fixed-dollar option 26
fixed maturity options 25
free look 31
free withdrawal amount 41
general account 54
General dollar cost averaging 26
guaranteed interest option 25
guaranteed minimum death benefit 30
guaranteed minimum death benefit charge 41
guaranteed minimum income benefit 29
IRA cover
IRS 46
Investment Simplifier 26
lifetime required minimum distribution withdrawals 36
Living Benefit option 29
Page
Living Benefit charge 41
loan reserve account 37
loans under Rollover TSA contracts 36
lump sum withdrawals 35
market adjusted amount 25
market value adjustment 25
market timing 33
maturity dates 25
maturity value 25
Mortality and expense risks charge 40
NQ cover
participant 20
portfolio cover
Principal Assurance Allocation 26
processing office 6
Protection Plus 30
Protection Plus charge 42
QP cover
rate to maturity 25
Rebalancing 34
roll-up death benefit 28
Rollover IRA cover
Rollover TSA cover
Roth Conversion IRA cover
Roth IRA cover
SAI cover
SEC cover
self-directed allocation 26
Separate Account 49 53
Standard death benefit 28
substantially equal withdrawals 35
Successor owner and annuitant 43
systematic withdrawals 35
TOPS 6
TSA cover
Traditional IRA 48
Trusts cover
unit 32
variable investment options 20
wire transmittals and electronic applications 54
Withdrawal charge 40
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 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 or supplemental materials.
- -------------------------------------------------------------------------------------
Prospectus Contract or Supplemental Materials
- -------------------------------------------------------------------------------------
fixed maturity options Guarantee Periods (Guaranteed Fixed Interest Accounts
in supplemental materials)
variable investment options Investment Funds
account value Annuity Account Value
rate to maturity Guaranteed Rates
unit Accumulation Unit
Living Benefit Guaranteed Minimum Income Benefit
Guaranteed Interest Option Guaranteed Interest Account
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 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
$508.31 billion in assets as of December 31, 2003. 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.
Effective on or about September 7, 2004, we expect, subject to regulatory
approval, to change the name of "The Equitable Life Assurance Society of the
United States" to "AXA Equitable Life Insurance Company." When the name change
becomes effective, all references in any current prospectus, prospectus
supplement or statement of additional information to "The Equitable Life
Assurance Society of the United States" will become references to "AXA
Equitable Life Insurance Company." Accordingly, all references to "Equitable
Life" or "Equitable" will become references to "AXA Equitable."
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 CONTRIBUTIONS SENT BY REGULAR MAIL:
- --------------------------------------------------------------------------------
Equitable Accumulator(R) Plus(SM)
P.O. Box 13014
Newark, NJ 07188-0014
- --------------------------------------------------------------------------------
FOR CONTRIBUTIONS SENT BY EXPRESS DELIVERY:
- --------------------------------------------------------------------------------
Equitable Accumulator(R) Plus(SM)
c/o Bank One, N.A.
300 Harmon Meadow Boulevard, 3rd Floor
Attn: Box 13014
Secaucus, NJ 07094
- --------------------------------------------------------------------------------
FOR ALL OTHER COMMUNICATIONS (E.G., REQUESTS FOR
TRANSFERS, WITHDRAWALS, OR REQUIRED NOTICES) SENT BY
REGULAR MAIL:
- --------------------------------------------------------------------------------
Equitable Accumulator(R) Plus(SM)
P.O. Box 1547
Secaucus, NJ 07096-1547
- --------------------------------------------------------------------------------
FOR ALL OTHER COMMUNICATIONS (E.G., REQUESTS FOR
TRANSFERS, WITHDRAWALS, OR REQUIRED NOTICES) SENT BY
EXPRESS DELIVERY:
- --------------------------------------------------------------------------------
Equitable Accumulator(R) Plus(SM)
200 Plaza Drive, 4th Floor
Secaucus, NJ 07094
- --------------------------------------------------------------------------------
REPORTS WE PROVIDE:
- --------------------------------------------------------------------------------
o written confirmation of financial transactions;
o statement of your contract values at the close of each calendar year and any
calendar quarter in which there was a financial transaction; and
o annual statement of your contract values as of the close of the contract
year, including notification of eligibility to exercise the guaranteed
minimum income benefit, if applicable.
- --------------------------------------------------------------------------------
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;
o change your 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 1-888-909-7770. If you are a client with AXA
Advisors you may use EQAccess by visiting our web site at
http://www.axaonline.com and clicking on EQAccess. All other clients may access
EQAccess by using our other web site at http://www.equitable.com. 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 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
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 (1-800-789-7771) to speak with one of our
customer service representatives. Our customer service representatives are
available on any business day from 8:30 a.m. until 5:30 p.m., Eastern Time.
WE REQUIRE THAT THE FOLLOWING TYPES OF COMMUNICATIONS BE ON SPECIFIC FORMS WE
PROVIDE FOR THAT PURPOSE:
(1) authorization for telephone transfers by your financial professional
(available only for contracts distributed through AXA Distributors);
(2) conversion of a traditional IRA to a Roth Conversion IRA
contract;
6 Who is Equitable Life?
(3) election of the automatic investment program;
(4) election of the rebalancing program;
(5) requests for loans under Rollover TSA contracts;
(6) spousal consent for loans under Rollover TSA contracts;
(7) requests for withdrawals or surrenders from Rollover TSA
contracts;
(8) tax withholding elections;
(9) election of the beneficiary continuation option;
(10) IRA contribution recharacterizations;
(11) certain section 1035 exchanges;
(12) direct transfers; and
(13) exercise of the Guaranteed minimum income benefit.
WE ALSO HAVE SPECIFIC FORMS THAT WE RECOMMEND YOU USE FOR THE FOLLOWING TYPES
OF REQUESTS:
(1) address changes;
(2) beneficiary changes;
(3) transfers between variable investment options;
(4) contract surrender and withdrawal requests;
(5) death claims; and
(6) general dollar cost averaging (including the fixed dollar and interest
sweep options)
TO CANCEL OR CHANGE ANY OF THE FOLLOWING WE REQUIRE WRITTEN NOTIFICATION
GENERALLY AT LEAST SEVEN CALENDAR DAYS BEFORE THE NEXT SCHEDULED TRANSACTION:
(1) automatic investment program;
(2) dollar cost averaging (including the fixed dollar amount and interest sweep
options);
(3) rebalancing;
(4) substantially equal withdrawals;
(5) systematic withdrawals; and
(6) 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
Equitable Accumulator(R) Plus(SM) at a glance -- key features
- --------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------------------------------------------
Professional investment Equitable Accumulator(R) Plus(SM) variable investment options invest in different portfolios managed by
mangement professional investment advisers.
- -----------------------------------------------------------------------------------------------------------------------------------
Fixed maturity options o Fixed maturity options ("FMOs") with maturities ranging from approximately 1 to 10 years (subject
to availability).
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. If you withdraw or transfer only a
portion of a fixed maturity amount, 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 also applies.
- -----------------------------------------------------------------------------------------------------------------------------------
Guaranteed interest o Principal and interest guarantees.
option o Interest rates set periodically.
- -----------------------------------------------------------------------------------------------------------------------------------
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 variable investment options.
contract
-------------------------------------------------------------------------------------------------------
If you are purchasing an annuity contract as an Individual Retirement Annuity (IRA) or Tax Sheltered
Annuity (TSA), or to fund an employer retirement plan (QP or Qualified Plan), 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 compared 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 and in the SAI.)
- -----------------------------------------------------------------------------------------------------------------------------------
Living Benefit protection The Living Benefit provides a guaranteed minimum income benefit. The guaranteed minimum income
benefit provides income protection for you during the annuitant's life once the owner elects to
annuitize the contract.
- -----------------------------------------------------------------------------------------------------------------------------------
Contribution amounts o Initial minimum: $10,000
o Additional minimum: $500 (NQ, QP and Rollover TSA contracts)
$100 monthly and $300 quarterly under our automatic investment program
(NQ contracts)
$50 (IRA contracts)
-------------------------------------------------------------------------------------------------------
Maximum contribution limitations may apply. In general, contributions are limited to $1.5 million.
- -----------------------------------------------------------------------------------------------------------------------------------
Credit We allocate your contributions to your account value. We allocate a credit to your account value at
the same time that we allocate your contributions. The amount of credit may be up to 5% of each
contribution, depending on certain factors. The credit is subject to recovery by us in certain limited
circumstances.
- -----------------------------------------------------------------------------------------------------------------------------------
Access to your money o Lump sum withdrawals
o Several withdrawal options on a periodic basis
o Loans under Rollover TSA contracts
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 tax penalty.
- -----------------------------------------------------------------------------------------------------------------------------------
Payout options o Fixed annuity payout options
o Variable Immediate Annuity payout options
o Income Manager(R) payout options
- -----------------------------------------------------------------------------------------------------------------------------------
8 Equitable Accumulator(R) Plus(SM) at a glance -- key features
- -----------------------------------------------------------------------------------------------------------------------------------
Additional features o Guaranteed minimum death benefit options
o Dollar cost averaging
o Automatic investment program
o Account value rebalancing (quarterly, semiannually, and annually)
o Free transfers
o Waiver of withdrawal charge for disability, terminal illness, or confinement to a nursing home
o Protection Plus, an optional death benefit available under certain contracts (subject to
state availability)
- -----------------------------------------------------------------------------------------------------------------------------------
Fees and charges o Daily charges on amounts invested in the variable investment options for mortality and expense risks,
administrative, and distribution charges at an annual rate of 1.40%.
o The charges for the guaranteed minimum death benefits range from 0.0% to 0.60%, annually, of the
applicable benefit base. The benefit base is described under "Your benefit base" in "Contract features
and benefits" later in this Prospectus.
o Annual 0.35% Protection Plus charge for this optional death benefit.
o Annual 0.60% of the applicable benefit base charge for the optional Living Benefit until you exercise
your guaranteed minimum income benefit, elect another annuity payout or the contract date anniversary
after the annuitant reaches age 85, whichever occurs first.
o If your account value at the end of the contract year is less than $50,000, we deduct an annual
administrative charge equal to $30, or during the first two contract years, 2% of your account value,
if less. If your account value, on the contract date anniversary, is $50,000 or more, we will not
deduct the charge.
o No sales charge deducted at the time you make contributions.
o During the first eight contract years following a contribution, a charge will be deducted from amounts
that you withdraw that exceed 15% of your account value. We use the account value at the beginning of
each contract year to calculate the 15% amount available. The charge is 8% in each of the first two
contract years following a contribution; the charge is 7% in the third and fourth contract years
following a contribution; thereafter, it declines by 1% each year in the fifth to eighth contract year
following a contribution. There is no withdrawal charge in the ninth and later contract years
following a contribution. 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 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." For example, if your contract date is May 1, your contract
date anniversary is April 30.
------------------------------------------------------------------------------------------------------------
o We deduct a charge designed to approximate certain taxes that may be imposed on us, such as premium
taxes in your state. This 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 the Variable Immediate Annuity
payout options.
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 0.10% to 1.50%
annually, 12b-1 fees of either 0.25% or 0.35% annually and other expenses.
- -----------------------------------------------------------------------------------------------------------------------------------
Annuitant issue ages NQ: 0-80
Rollover IRA, Roth Conversion IRA and Rollover TSA: 20-80
QP: 20-70
- -----------------------------------------------------------------------------------------------------------------------------------
The above is not a complete description of all material provisions of the
contract. In some cases, restrictions or exceptions apply. Also, all features
of the contract 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.
Equitable Accumulator(R) Plus(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, credits, fees and/or charges that are
different from those in the contracts offered by this Prospectus. Not every
contract is offered through the same distributor. The level of credits, fees,
charges and features may vary depending (among other things) on the
distribution costs associated with your particular 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 Equitable Accumulator(R) Plus(SM) at a glance -- key features
Fee table
- --------------------------------------------------------------------------------
The following tables describe the fees and expenses that you will pay when
buying, owning, and surrendering the contract. Each of the charges and expenses
is more fully described in "Charges and expenses" later in this Prospectus.
The first table describes fees and expenses that you will pay at the time you
surrender the contract or if you make certain withdrawals or apply your cash
value to certain payout options or if you purchase a Variable Immediate
Annuity. Charges designed to approximate certain taxes that may be imposed on
us, such as premium taxes in your state, may also apply. Charges for certain
features shown in the fee table are mutually exclusive.
- --------------------------------------------------------------------------------
Charges we deduct from your account value at the time you request certain
transactions
- --------------------------------------------------------------------------------
Maximum withdrawal charge as a percentage of contributions with-
drawn* (deducted if you surrender your contract, make certain
withdrawals, or apply your cash value to certain payout options).(1) 8.00%
Charge if you elect a Variable Immediate Annuity payout option $350
- --------------------------------------------------------------------------------
The next table describes the fees and expenses that you will pay periodically
during the time that you own the contract, not including the underlying trust
portfolio fees and expenses.
- --------------------------------------------------------------------------------
Charges we deduct from your variable investment options expressed as an annual
percentage of daily net assets
- --------------------------------------------------------------------------------
Mortality and expense risks 0.90%*
Administrative 0.25%
Distribution 0.25%
-------
Total annual expenses 1.40%
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Charges we deduct from your account value on each contract date anniversary
- --------------------------------------------------------------------------------
Maximum annual administrative charge
If your account value on a contract date anniversary is less than
$50,000(2) $30
If your account value on a contract date anniversary is $50,000
or more $0
- --------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------------------------------------------
Charges we deduct from your account value each year if you elect the optional benefit
- -----------------------------------------------------------------------------------------------------------------------------------
Guaranteed minimum death benefit charge (calculated as a
percentage of the applicable benefit base. Deducted annually on each
contract date anniversary for which the benefit is in effect.)
Standard death benefit 0.00 %
Annual Ratchet to age 85 0.30% of the Annual Ratchet to age 85 benefit base
6% Roll-up to age 85 0.45% of the 6% roll-up to age 85 benefit base
Greater of 6% Roll-up to age 85 or Annual Ratchet to age 85 0.60% of the greater of the 6% roll-up to age 85
benefit base or the Annual Ratchet to age 85
benefit base, as applicable
- -----------------------------------------------------------------------------------------------------------------------------------
Living Benefit charge (calculated as a percentage of the applicable
benefit base. Deducted annually on each contract date anniversary for
which the benefit is in effect.) 0.60 %
- -----------------------------------------------------------------------------------------------------------------------------------
Protection Plus benefit charge (calculated as a percentage of the
account value. Deducted annually on each contract date anniversary
for which the benefit is in effect.) 0.35 %
- -----------------------------------------------------------------------------------------------------------------------------------
* These charges compensate us for certain risks we assume and expenses we incur
under the contract. They also compensate us for the expense associated with
the credit. We expect to make a profit from these charges.
Fee table 11
You also bear your proportionate share of all fees and expenses paid by a
"Portfolio" that corresponds to any variable investment option you are using.
This table shows the lowest and highest total operating expenses charged by any
of the Portfolios that you will pay periodically during the time that you own
the contract. These fees and expenses are reflected in the Portfolio's net
asset value each day. Therefore, they reduce the investment return of the
Portfolio and the related variable investment option. Actual fees and expenses
are likely to fluctuate from year to year. More detail concerning each
Portfolio's fees and expenses is contained in the Trust prospectus for the
Portfolio.
- -----------------------------------------------------------------------------------------------------------
Portfolio operating expenses expressed as an annual percentage of daily net assets Lowest Highest
- -----------------------------------------------------------------------------------------------------------
Total Annual Portfolio Operating Expenses for 2003 (expenses that are deducted
from Portfolio assets including management fees, 12b-1 fees, service fees, and/or
other expenses)(3) 0.56% 10.23%
- -----------------------------------------------------------------------------------------------------------
This table shows the fees and expenses for 2003 as an annual percentage of each
Portfolio's daily average net assets.
- --------------------------------------------------------------------------------------------
Manage-
ment 12b-1 Other
Portfolio Name Fees(4) Fees(5) Expenses(6)
- --------------------------------------------------------------------------------------------
AXA PREMIER VIP TRUST:+-
- --------------------------------------------------------------------------------------------
AXA Aggressive Allocation 0.10% 0.25% 5.91%
AXA Conservative Allocation 0.10% 0.25% 9.04%
AXA Conservative-Plus Allocation 0.10% 0.25% 4.13%
AXA Moderate Allocation 0.10% 0.25% 0.39%
AXA Moderate-Plus Allocation 0.10% 0.25% 1.77%
AXA Premier VIP Aggressive Equity 0.62% 0.25% 0.15%
AXA Premier VIP Core Bond 0.60% 0.25% 0.26%
AXA Premier VIP Health Care 1.20% 0.25% 0.48%
AXA Premier VIP High Yield 0.59% 0.25% 0.16%
AXA Premier VIP International Equity 1.05% 0.25% 0.73%
AXA Premier VIP Large Cap Core Equity 0.90% 0.25% 0.52%
AXA Premier VIP Large Cap Growth 0.90% 0.25% 0.43%
AXA Premier VIP Large Cap Value 0.90% 0.25% 0.43%
AXA Premier VIP Small/Mid Cap Growth 1.10% 0.25% 0.35%
AXA Premier VIP Small/Mid Cap Value 1.10% 0.25% 0.31%
AXA Premier VIP Technology 1.20% 0.25% 0.83%
- --------------------------------------------------------------------------------------------
EQ ADVISORS TRUST:
- --------------------------------------------------------------------------------------------
EQ/Alliance Common Stock 0.48% 0.25% 0.06%
EQ/Alliance Growth and Income 0.57% 0.25% 0.06%
EQ/Alliance Intermediate Government Securities 0.49% 0.25% 0.08%
EQ/Alliance International 0.74% 0.25% 0.13%
EQ/Alliance Premier Growth 0.90% 0.25% 0.05%
EQ/Alliance Quality Bond 0.52% 0.25% 0.06%
EQ/Alliance Small Cap Growth 0.75% 0.25% 0.07%
EQ/Bernstein Diversified Value 0.64% 0.25% 0.06%
EQ/Calvert Socially Responsible 0.65% 0.25% 0.55%
EQ/Capital Guardian International 0.85% 0.25% 0.21%
EQ/Capital Guardian Research 0.65% 0.25% 0.07%
EQ/Capital Guardian U.S. Equity 0.65% 0.25% 0.07%
EQ/Emerging Markets Equity 1.15% 0.25% 0.40%
EQ/Equity 500 Index 0.25% 0.25% 0.06%
EQ/Evergreen Omega 0.65% 0.25% 0.25%
EQ/FI Mid Cap 0.70% 0.25% 0.08%
EQ/FI Small/Mid Cap Value 0.75% 0.25% 0.10%
EQ/Janus Large Cap Growth 0.90% 0.25% 0.09%
EQ/J.P. Morgan Core Bond 0.44% 0.25% 0.08%
EQ/Lazard Small Cap Value 0.75% 0.25% 0.10%
EQ/Marsico Focus 0.90% 0.25% 0.07%
EQ/Mercury Basic Value Equity 0.60% 0.25% 0.07%
EQ/Mercury International Value 0.85% 0.25% 0.16%
EQ/MFS Emerging Growth Companies 0.65% 0.25% 0.07%
EQ/MFS Investors Trust 0.60% 0.25% 0.11%
- --------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------
Total Net Total
Annual Fee Waiv- Annual
Underlying Expenses ers and/or Expenses
Portfolio (Before Expense After
Fees and Expense Reimburse- Expense
Portfolio Name Expenses(7) Limitation) ments(8) Limitations
- --------------------------------------------------------------------------------------------------------------
AXA PREMIER VIP TRUST:
- --------------------------------------------------------------------------------------------------------------
AXA Aggressive Allocation 1.08% 7.34% (5.98)% 1.36%
AXA Conservative Allocation 0.84% 10.23% (9.13)% 1.10%
AXA Conservative-Plus Allocation 0.88% 5.36% (4.21)% 1.15%
AXA Moderate Allocation 0.86% 1.60% (0.43)% 1.17%
AXA Moderate-Plus Allocation 1.13% 3.25% (1.87)% 1.38%
AXA Premier VIP Aggressive Equity -- 1.02% -- 1.02%
AXA Premier VIP Core Bond -- 1.11% (0.16)% 0.95%
AXA Premier VIP Health Care -- 1.93% (0.08)% 1.85%
AXA Premier VIP High Yield -- 1.00% -- 1.00%
AXA Premier VIP International Equity -- 2.03% (0.23)% 1.80%
AXA Premier VIP Large Cap Core Equity -- 1.67% (0.32)% 1.35%
AXA Premier VIP Large Cap Growth -- 1.58% (0.23)% 1.35%
AXA Premier VIP Large Cap Value -- 1.58% (0.23)% 1.35%
AXA Premier VIP Small/Mid Cap Growth -- 1.70% (0.10)% 1.60%
AXA Premier VIP Small/Mid Cap Value -- 1.66% (0.06)% 1.60%
AXA Premier VIP Technology -- 2.28% (0.43)% 1.85%
- --------------------------------------------------------------------------------------------------------------
EQ ADVISORS TRUST:
- --------------------------------------------------------------------------------------------------------------
EQ/Alliance Common Stock -- 0.79% -- 0.79%
EQ/Alliance Growth and Income -- 0.88% -- 0.88%
EQ/Alliance Intermediate Government Securities -- 0.82% -- 0.82%
EQ/Alliance International -- 1.12% (0.02)% 1.10%
EQ/Alliance Premier Growth -- 1.20% (0.04)% 1.16%
EQ/Alliance Quality Bond -- 0.83% -- 0.83%
EQ/Alliance Small Cap Growth -- 1.07% -- 1.07%
EQ/Bernstein Diversified Value -- 0.95% 0.00% 0.95%
EQ/Calvert Socially Responsible -- 1.45% (0.40)% 1.05%
EQ/Capital Guardian International -- 1.31% (0.11)% 1.20%
EQ/Capital Guardian Research -- 0.97% (0.02)% 0.95%
EQ/Capital Guardian U.S. Equity -- 0.97% (0.02)% 0.95%
EQ/Emerging Markets Equity -- 1.80% 0.00% 1.80%
EQ/Equity 500 Index -- 0.56% -- 0.56%
EQ/Evergreen Omega -- 1.15% (0.20)% 0.95%
EQ/FI Mid Cap -- 1.03% (0.03)% 1.00%
EQ/FI Small/Mid Cap Value -- 1.10% 0.00% 1.10%
EQ/Janus Large Cap Growth -- 1.24% (0.09)% 1.15%
EQ/J.P. Morgan Core Bond -- 0.77% 0.00% 0.77%
EQ/Lazard Small Cap Value -- 1.10% 0.00% 1.10%
EQ/Marsico Focus -- 1.22% (0.07)% 1.15%
EQ/Mercury Basic Value Equity -- 0.92% 0.00% 0.92%
EQ/Mercury International Value -- 1.26% (0.01)% 1.25%
EQ/MFS Emerging Growth Companies -- 0.97% -- 0.97%
EQ/MFS Investors Trust -- 0.96% (0.01)% 0.95%
- --------------------------------------------------------------------------------------------------------------
12 Fee table
- ----------------------------------------------------------------------------------
Manage-
ment 12b-1 Other
Portfolio Name Fees(4) Fees(5) Expenses(6)
- ----------------------------------------------------------------------------------
EQ ADVISORS TRUST:
- ----------------------------------------------------------------------------------
EQ/Money Market 0.33% 0.25% 0.06%
EQ/Putnam Growth & Income Value 0.60% 0.25% 0.10%
EQ/Putnam Voyager 0.65% 0.25% 0.13%
EQ/Small Company Index 0.25% 0.25% 0.35%
EQ/Technology 0.90% 0.25% 0.09%
- ----------------------------------------------------------------------------------
BARR ROSENBERG VARIABLE INSURANCE TRUST:
- ----------------------------------------------------------------------------------
Laudus Rosenberg VIT Value Long/Short Equity 1.50% 0.25% 5.80%
- ----------------------------------------------------------------------------------
THE UNIVERSAL INSTITUTIONAL FUNDS, INC.:
- ----------------------------------------------------------------------------------
U.S. Real Estate -- Class II 0.80% 0.35% 0.31%
- ----------------------------------------------------------------------------------
- -------------------------------------------------------------------------------------------------------
Total Net Total
Annual Fee Waiv- Annual
Underlying Expenses ers and/or Expenses
Portfolio (Before Expense After
Fees and Expense Reimburse- Expense
Portfolio Name Expenses(7) Limitation) ments(8) Limitations
- --------------------------------------------------------------------------------------------------------
EQ ADVISORS TRUST:
- --------------------------------------------------------------------------------------------------------
EQ/Money Market -- 0.64% -- 0.64%
EQ/Putnam Growth & Income Value -- 0.95% 0.00% 0.95%
EQ/Putnam Voyager -- 1.03% (0.08)% 0.95%
EQ/Small Company Index -- 0.85% 0.00% 0.85%
EQ/Technology -- 1.24% (0.09)% 1.15%
- --------------------------------------------------------------------------------------------------------
BARR ROSENBERG VARIABLE INSURANCE TRUST:
- --------------------------------------------------------------------------------------------------------
Laudus Rosenberg VIT Value Long/Short Equity -- 7.55% (4.57)% 2.98%
- --------------------------------------------------------------------------------------------------------
THE UNIVERSAL INSTITUTIONAL FUNDS, INC.:
- --------------------------------------------------------------------------------------------------------
U.S. Real Estate -- Class II -- 1.46 (0.11)% 1.35%
- --------------------------------------------------------------------------------------------------------
Notes:
(1) Deducted upon a withdrawal of amounts in excess of the 15% free withdrawal
amount, if applicable.
The withdrawal charge percentage we use is determined by the contract year in which you Contract
make the withdrawal or surrender your contract. For each contribution, we consider the Year
contract year in which we receive that contribution to be "contract year 1") 1 .................... 8.00%
2 .................... 8.00%
3 .................... 7.00%
4 .................... 7.00%
5 .................... 6.00%
6 .................... 5.00%
7 .................... 4.00%
8 .................... 3.00%
9+ ................... 0.00%
(2) During the first two contract years this charge, if it applies, is equal to
the lesser of $30 or 2% of your account value. Thereafter, the charge is
$30 for each contract year.
(3) "Total Annual Portfolio Operating Expenses" are based, in part, on
estimated amounts for options added during the fiscal year 2003 and for the
underlying portfolios.
(4) The management fees for each Portfolio cannot be increased without a vote
of that Portfolio's shareholders. See footnote (8) for any expense
limitation agreement information.
(5) 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.
(6) Other expenses shown are those incurred in 2003. The amounts shown as
"Other Expenses" will fluctuate from year to year depending on actual
expenses. See footnote (8) for any expense limitation agreement
information.
(7) The AXA Allocation variable investment options invest in corresponding
portfolios of the AXA Premier VIP Trust. Each AXA Allocation portfolio in
turn invests shares of other portfolios of the EQ Advisors Trust and AXA
Premier VIP Trust ("the underlying portfolios"). Amounts shown reflect each
AXA Allocation portfolio's pro rata share of the fees and expenses of the
various underlying portfolios in which it invests. The fees and expenses
have been estimated based on the respective weighted investment allocations
as of 12/31/03. A "--" indicates that the listed portfolio does not invest
in underlying portfolios, i.e., it is not an allocation portfolio.
(8) The amounts shown reflect any fee waivers and/or expense reimbursements
that applied to each Portfolio. A "-" indicates that there is no expense
limitation in effect. "0.00%" indicates that the expense limitation
arrangement did not result in a fee waiver or reimbursement. Equitable
Life, the investment manager of AXA Premier VIP Trust and EQ Advisors
Trust, has entered into Expense Limitation Agreements with respect to
certain Portfolios, which are effective through April 30, 2005. Under these
agreements Equitable Life has agreed to waive or limit its fees and assume
other expenses of certain Portfolios, if necessary, in an amount that
limits each affected Portfolio's total Annual Expenses (exclusive of
interest, taxes, brokerage commissions, capitalized expenditures and
extraordinary expenses) to not more than specified amounts. 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. Morgan Stanley
Investment Management Inc., which does business in certain instances as
"Van Kampen," is the manager of The Universal Institutional Funds, Inc. --
U.S. Real Estate Portfolio -- Class II, and has voluntarily agreed to
reduce its management fee and/or reimburse the Portfolio so that total
annual operating expenses of the Portfolio (exclusive of investment related
expenses, such as foreign country tax expense and interest expense on
amounts borrowed) are not more than specified amounts. Van Kampen reserves
the right to terminate any waiver and/or reimbursement at any time without
notice. Charles Schwab Investment Management, Inc, the manager of the Barr
Rosenberg Variable Insurance Trust -- Laudus Rosenberg VIT Value Long/Short
Equity Portfolio, has voluntarily agreed to reimburse expenses in excess of
specified amounts. See the Prospectus for each applicable underlying Trust
for more information about the arrangements. In addition, a portion of the
brokerage commissions for certain portfolios of EQ Advisors Trust Portfolio
and AXA Premier VIP Trust Portfolio is used to reduce the applicable
Portfolio's expenses. If the above table reflected both the expense
limitation arrangements plus the portion of the brokerage commissions used
to reduce portfolio expenses, the net expenses would be as shown in the
table below:
- --------------------------------------------------
Portfolio Name
- --------------------------------------------------
AXA Aggressive Allocation 0.95%
- --------------------------------------------------
AXA Conservative Allocation 0.73%
- --------------------------------------------------
AXA Conservative-Plus Allocation 0.78%
- --------------------------------------------------
AXA Moderate Allocation 0.79%
- --------------------------------------------------
AXA Moderate-Plus Allocation 0.99%
- --------------------------------------------------
AXA Premier VIP Aggressive Equity 0.95%
- --------------------------------------------------
AXA Premier VIP Health Care 1.84%
- --------------------------------------------------
AXA Premier VIP International Equity 1.73%
- --------------------------------------------------
AXA Premier VIP Large Cap Core Equity 1.32%
- --------------------------------------------------
Fee table 13
- --------------------------------------------------
Portfolio Name
- --------------------------------------------------
AXA Premier VIP Large Cap Growth 1.32%
- --------------------------------------------------
AXA Premier VIP Large Cap Value 1.28%
- --------------------------------------------------
AXA Premier VIP Small/Mid Cap Growth 1.46%
- --------------------------------------------------
AXA Premier VIP Small/Mid Cap Value 1.52%
- --------------------------------------------------
AXA Premier VIP Technology 1.70%
- --------------------------------------------------
EQ/Alliance Common Stock 0.77%
- --------------------------------------------------
EQ/Alliance Growth and Income 0.85%
- --------------------------------------------------
EQ/Alliance Premier Growth 1.15%
- --------------------------------------------------
EQ/Alliance Small Cap Growth 1.03%
- --------------------------------------------------
EQ/Calvert Socially Responsible 1.00%
- --------------------------------------------------
EQ/Capital Guardian International 1.18%
- --------------------------------------------------
EQ/Capital Guardian Research 0.93%
- --------------------------------------------------
EQ/Capital Guardian U.S. Equity 0.93%
- --------------------------------------------------
EQ/Emerging Markets Equity 1.78%
- --------------------------------------------------
EQ/Evergreen Omega 0.84%
- --------------------------------------------------
EQ/FI Mid Cap 0.88%
- --------------------------------------------------
EQ/FI Small/Mid Cap Value 1.04%
- --------------------------------------------------
EQ/Lazard Small Cap Value 1.00%
- --------------------------------------------------
EQ/Marsico Focus 1.10%
- --------------------------------------------------
EQ/Mercury Basic Value Equity 0.91%
- --------------------------------------------------
EQ/Mercury International Value 1.18%
- --------------------------------------------------
EQ/MFS Emerging Growth Companies 0.96%
- --------------------------------------------------
EQ/MFS Investors Trust 0.94%
- --------------------------------------------------
EQ/Putnam Growth & Income Value 0.93%
- --------------------------------------------------
EQ/Putnam Voyager 0.93%
- --------------------------------------------------
EQ/Technology 1.01%
- --------------------------------------------------
EXAMPLE
This example is intended to help you compare the cost of investing in the
contract with the cost of investing in other variable annuity contracts. These
costs include contract owner transaction expenses, contract fees, separate
account annual expenses, and underlying trust fees and expenses (including the
underlying portfolio fees and expenses).
The example below shows the expenses that a hypothetical contract owner (who
has elected the Living Benefit with the enhanced death benefit that provides
for the greater of the 6% Roll-up or the Annual Ratchet to age 85 and
Protection Plus) would pay in the situations illustrated. 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 $1.60 per $10,000.
The fixed maturity options and guaranteed interest option are not covered by
the examples. However, the annual administrative charge, the withdrawal charge,
the charge for any optional benefits and the charge if you elect a Variable
Immediate Annuity payout option do apply to the fixed maturity options and
guaranteed interest option. 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.
The example assumes that you invest $10,000 in the contract for the time
periods indicated. The Example also assumes that your investment has a 5%
return each year. This example 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 example
is not an estimate or guarantee of future investment performance. Although your
actual costs may be higher or lower, based on these assumptions, your costs
would be:
14 Fee table
- ---------------------------------------------------------------------------------------------------------------
If you surrender your contract
at the end of the applicable time period
- ---------------------------------------------------------------------------------------------------------------
Portfolio Name 1 year 3 years 5 years 10 years
- ---------------------------------------------------------------------------------------------------------------
AXA PREMIER VIP TRUST:
- ---------------------------------------------------------------------------------------------------------------
AXA Aggressive Allocation $ 1,921.80 $ 3,917.98 $ 5,732.81 $ 9,233.68
AXA Conservative Allocation $ 2,236.88 $ 4,695.42 $ 6,785.67 $ 10,388.54
AXA Conservative-Plus Allocation $ 1,705.34 $ 3,353.03 $ 4,920.69 $ 8,169.69
AXA Moderate Allocation $ 1,295.11 $ 2,211.06 $ 3,162.71 $ 5,359.93
AXA Moderate-Plus Allocation $ 1,475.16 $ 2,723.93 $ 3,971.17 $ 6,737.49
AXA Premier VIP Aggressive Equity $ 1,231.57 $ 2,025.29 $ 2,862.26 $ 4,811.01
AXA Premier VIP Core Bond $ 1,241.28 $ 2,054.00 $ 2,909.02 $ 4,897.82
AXA Premier VIP Health Care $ 1,330.74 $ 2,314.02 $ 3,327.45 $ 5,652.35
AXA Premier VIP High Yield $ 1,229.42 $ 2,018.90 $ 2,851.84 $ 4,791.60
AXA Premier VIP International Equity $ 1,341.66 $ 2,345.42 $ 3,377.46 $ 5,739.93
AXA Premier VIP Large Cap Core Equity $ 1,302.35 $ 2,232.05 $ 3,196.39 $ 5,420.20
AXA Premier VIP Large Cap Growth $ 1,292.53 $ 2,203.57 $ 3,150.68 $ 5,338.32
AXA Premier VIP Large Cap Value $ 1,292.53 $ 2,203.57 $ 3,150.68 $ 5,338.32
AXA Premier VIP Small/Mid Cap Growth $ 1,305.63 $ 2,241.53 $ 3,211.59 $ 5,447.32
AXA Premier VIP Small/Mid Cap Value $ 1,301.26 $ 2,228.89 $ 3,191.32 $ 5,411.14
AXA Premier VIP Technology $ 1,368.95 $ 2,423.63 $ 3,501.50 $ 5,954.80
- ---------------------------------------------------------------------------------------------------------------
EQ ADVISORS TRUST:
- ---------------------------------------------------------------------------------------------------------------
EQ/Alliance Common Stock $ 1,206.76 $ 1,951.65 $ 2,741.93 $ 4,585.38
EQ/Alliance Growth and Income $ 1,216.47 $ 1,980.51 $ 2,789.16 $ 4,674.32
EQ/Alliance Intermediate Government Securities $ 1,210.00 $ 1,961.28 $ 2,757.69 $ 4,615.12
EQ/Alliance International $ 1,242.36 $ 2,057.19 $ 2,914.20 $ 4,907.41
EQ/Alliance Premier Growth $ 1,251.04 $ 2,082.71 $ 2,955.63 $ 4,983.84
EQ/Alliance Quality Bond $ 1,211.08 $ 1,964.48 $ 2,762.94 $ 4,625.01
EQ/Alliance Small Cap Growth $ 1,236.97 $ 2,041.25 $ 2,888.26 $ 4,859.34
EQ/Bernstein Diversified Value $ 1,224.02 $ 2,002.91 $ 2,825.76 $ 4,742.92
EQ/Calvert Socially Responsible $ 1,278.33 $ 2,162.33 $ 3,084.32 $ 5,218.66
EQ/Capital Guardian International $ 1,263.05 $ 2,117.79 $ 3,012.43 $ 5,087.93
EQ/Capital Guardian Research $ 1,226.18 $ 2,009.31 $ 2,836.20 $ 4,762.42
EQ/Capital Guardian U.S. Equity $ 1,226.18 $ 2,009.31 $ 2,836.20 $ 4,762.42
EQ/Emerging Markets Equity $ 1,316.55 $ 2,273.09 $ 3,262.11 $ 5,537.09
EQ/Equity 500 Index $ 1,181.95 $ 1,877.66 $ 2,620.38 $ 4,354.24
EQ/Evergreen Omega $ 1,245.60 $ 2,066.75 $ 2,929.74 $ 4,936.14
EQ/FI Mid Cap $ 1,232.65 $ 2,028.48 $ 2,867.46 $ 4,820.69
EQ/FI Small/Mid Cap Value $ 1,240.20 $ 2,050.81 $ 2,903.83 $ 4,888.21
EQ/J.P. Morgan Core Bond $ 1,204.60 $ 1,945.23 $ 2,731.41 $ 4,565.50
EQ/Janus Large Cap Growth $ 1,255.40 $ 2,095.48 $ 2,976.31 $ 5,021.83
EQ/Lazard Small Cap Value $ 1,240.20 $ 2,050.81 $ 2,903.83 $ 4,888.21
EQ/Marsico Focus $ 1,253.22 $ 2,089.09 $ 2,965.98 $ 5,002.85
EQ/Mercury Basic Value Equity $ 1,220.79 $ 1,993.32 $ 2,810.09 $ 4,713.58
EQ/Mercury International Value $ 1,257.59 $ 2,101.86 $ 2,986.64 $ 5,040.77
EQ/MFS Emerging Growth Companies $ 1,226.18 $ 2,009.31 $ 2,836.20 $ 4,762.42
EQ/MFS Investors Trust $ 1,225.10 $ 2,006.11 $ 2,830.98 $ 4,752.67
- ---------------------------------------------------------------------------------------------------------------
- -------------------------------------------------------------------------------------------------------------
If you annuitize at the end of the
applicable time period
- -------------------------------------------------------------------------------------------------------------
Portfolio Name 1 year 3 years 5 years 10 years
- -------------------------------------------------------------------------------------------------------------
AXA PREMIER VIP TRUST:
- -------------------------------------------------------------------------------------------------------------
AXA Aggressive Allocation $ 1,471.80 $ 3,567.98 $ 5,482.81 $ 9,583.68
AXA Conservative Allocation $ 1,786.88 $ 4,345.42 $ 6,535.67 $ 10,738.54
AXA Conservative-Plus Allocation $ 1,255.34 $ 3,003.03 $ 4,670.69 $ 8,519.69
AXA Moderate Allocation $ 845.11 $ 1,861.06 $ 2,912.71 $ 5,709.93
AXA Moderate-Plus Allocation $ 1,025.16 $ 2,373.93 $ 3,721.17 $ 7,087.49
AXA Premier VIP Aggressive Equity $ 781.57 $ 1,675.29 $ 2,612.26 $ 5,161.01
AXA Premier VIP Core Bond $ 791.28 $ 1,704.00 $ 2,659.02 $ 5,247.82
AXA Premier VIP Health Care $ 880.74 $ 1,964.02 $ 3,077.45 $ 6,002.35
AXA Premier VIP High Yield $ 779.42 $ 1,668.90 $ 2,601.84 $ 5,141.60
AXA Premier VIP International Equity $ 891.66 $ 1,995.42 $ 3,127.46 $ 6,089.93
AXA Premier VIP Large Cap Core Equity $ 852.35 $ 1,882.05 $ 2,946.39 $ 5,770.20
AXA Premier VIP Large Cap Growth $ 842.53 $ 1,853.57 $ 2,900.68 $ 5,688.32
AXA Premier VIP Large Cap Value $ 842.53 $ 1,853.57 $ 2,900.68 $ 5,688.32
AXA Premier VIP Small/Mid Cap Growth $ 855.63 $ 1,891.53 $ 2,961.59 $ 5,797.32
AXA Premier VIP Small/Mid Cap Value $ 851.26 $ 1,878.89 $ 2,941.32 $ 5,761.14
AXA Premier VIP Technology $ 918.95 $ 2,073.63 $ 3,251.50 $ 6,304.80
- -------------------------------------------------------------------------------------------------------------
EQ ADVISORS TRUST:
- -------------------------------------------------------------------------------------------------------------
EQ/Alliance Common Stock $ 756.76 $ 1,601.65 $ 2,491.93 $ 4,935.38
EQ/Alliance Growth and Income $ 766.47 $ 1,630.51 $ 2,539.16 $ 5,024.32
EQ/Alliance Intermediate Government Securities $ 760.00 $ 1,611.28 $ 2,507.69 $ 4,965.12
EQ/Alliance International $ 792.36 $ 1,707.19 $ 2,664.20 $ 5,257.41
EQ/Alliance Premier Growth $ 801.04 $ 1,732.71 $ 2,705.63 $ 5,333.84
EQ/Alliance Quality Bond $ 761.08 $ 1,614.48 $ 2,512.94 $ 4,975.01
EQ/Alliance Small Cap Growth $ 786.97 $ 1,691.25 $ 2,638.26 $ 5,209.34
EQ/Bernstein Diversified Value $ 774.02 $ 1,652.91 $ 2,575.76 $ 5,092.92
EQ/Calvert Socially Responsible $ 828.33 $ 1,812.33 $ 2,834.32 $ 5,568.66
EQ/Capital Guardian International $ 813.05 $ 1,767.79 $ 2,762.43 $ 5,437.93
EQ/Capital Guardian Research $ 776.18 $ 1,659.31 $ 2,586.20 $ 5,112.42
EQ/Capital Guardian U.S. Equity $ 776.18 $ 1,659.31 $ 2,586.20 $ 5,112.42
EQ/Emerging Markets Equity $ 866.55 $ 1,923.09 $ 3,012.11 $ 5,887.09
EQ/Equity 500 Index $ 731.95 $ 1,527.66 $ 2,370.38 $ 4,704.24
EQ/Evergreen Omega $ 795.60 $ 1,716.75 $ 2,679.74 $ 5,286.14
EQ/FI Mid Cap $ 782.65 $ 1,678.48 $ 2,617.46 $ 5,170.69
EQ/FI Small/Mid Cap Value $ 790.20 $ 1,700.81 $ 2,653.83 $ 5,238.21
EQ/J.P. Morgan Core Bond $ 754.60 $ 1,595.23 $ 2,481.41 $ 4,915.50
EQ/Janus Large Cap Growth $ 805.40 $ 1,745.48 $ 2,726.31 $ 5,371.83
EQ/Lazard Small Cap Value $ 790.20 $ 1,700.81 $ 2,653.83 $ 5,238.21
EQ/Marsico Focus $ 803.22 $ 1,739.09 $ 2,715.98 $ 5,352.85
EQ/Mercury Basic Value Equity $ 770.79 $ 1,643.32 $ 2,560.09 $ 5,063.58
EQ/Mercury International Value $ 807.59 $ 1,751.86 $ 2,736.64 $ 5,390.77
EQ/MFS Emerging Growth Companies $ 776.18 $ 1,659.31 $ 2,586.20 $ 5,112.42
EQ/MFS Investors Trust $ 775.10 $ 1,656.11 $ 2,580.98 $ 5,102.67
- -------------------------------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------------------
If you do not surrender your contract
at the end of the applicable time period
- -----------------------------------------------------------------------------------------------------------
Portfolio Name 1 year 3 years 5 years 10 years
- -----------------------------------------------------------------------------------------------------------
AXA PREMIER VIP TRUST:
- -----------------------------------------------------------------------------------------------------------
AXA Aggressive Allocation $ 1,121.80 $ 3,217.98 $ 5,132.81 $ 9,233.68
AXA Conservative Allocation $ 1,436.88 $ 3,995.42 $ 6,185.67 $ 10,388.54
AXA Conservative-Plus Allocation $ 905.34 $ 2,653.03 $ 4,320.69 $ 8,169.69
AXA Moderate Allocation $ 495.11 $ 1,511.06 $ 2,562.71 $ 5,359.93
AXA Moderate-Plus Allocation $ 675.16 $ 2,023.93 $ 3,371.17 $ 6,737.49
AXA Premier VIP Aggressive Equity $ 431.57 $ 1,325.29 $ 2,262.26 $ 4,811.01
AXA Premier VIP Core Bond $ 441.28 $ 1,354.00 $ 2,309.02 $ 4,897.82
AXA Premier VIP Health Care $ 530.74 $ 1,614.02 $ 2,727.45 $ 5,652.35
AXA Premier VIP High Yield $ 429.42 $ 1,318.90 $ 2,251.84 $ 4,791.60
AXA Premier VIP International Equity $ 541.66 $ 1,645.42 $ 2,777.46 $ 5,739.93
AXA Premier VIP Large Cap Core Equity $ 502.35 $ 1,532.05 $ 2,596.39 $ 5,420.20
AXA Premier VIP Large Cap Growth $ 492.53 $ 1,503.57 $ 2,550.68 $ 5,338.32
AXA Premier VIP Large Cap Value $ 492.53 $ 1,503.57 $ 2,550.68 $ 5,338.32
AXA Premier VIP Small/Mid Cap Growth $ 505.63 $ 1,541.53 $ 2,611.59 $ 5,447.32
AXA Premier VIP Small/Mid Cap Value $ 501.26 $ 1,528.89 $ 2,591.32 $ 5,411.14
AXA Premier VIP Technology $ 568.95 $ 1,723.63 $ 2,901.50 $ 5,954.80
- -----------------------------------------------------------------------------------------------------------
EQ ADVISORS TRUST:
- -----------------------------------------------------------------------------------------------------------
EQ/Alliance Common Stock $ 406.76 $ 1,251.65 $ 2,141.93 $ 4,585.38
EQ/Alliance Growth and Income $ 416.47 $ 1,280.51 $ 2,189.16 $ 4,674.32
EQ/Alliance Intermediate Government Securities $ 410.00 $ 1,261.28 $ 2,157.69 $ 4,615.12
EQ/Alliance International $ 442.36 $ 1,357.19 $ 2,314.20 $ 4,907.41
EQ/Alliance Premier Growth $ 451.04 $ 1,382.71 $ 2,355.63 $ 4,983.84
EQ/Alliance Quality Bond $ 411.08 $ 1,264.48 $ 2,162.94 $ 4,625.01
EQ/Alliance Small Cap Growth $ 436.97 $ 1,341.25 $ 2,288.26 $ 4,859.34
EQ/Bernstein Diversified Value $ 424.02 $ 1,302.91 $ 2,225.76 $ 4,742.92
EQ/Calvert Socially Responsible $ 478.33 $ 1,462.33 $ 2,484.32 $ 5,218.66
EQ/Capital Guardian International $ 463.05 $ 1,417.79 $ 2,412.43 $ 5,087.93
EQ/Capital Guardian Research $ 426.18 $ 1,309.31 $ 2,236.20 $ 4,762.42
EQ/Capital Guardian U.S. Equity $ 426.18 $ 1,309.31 $ 2,236.20 $ 4,762.42
EQ/Emerging Markets Equity $ 516.55 $ 1,573.09 $ 2,662.11 $ 5,537.09
EQ/Equity 500 Index $ 381.95 $ 1,177.66 $ 2,020.38 $ 4,354.24
EQ/Evergreen Omega $ 445.60 $ 1,366.75 $ 2,329.74 $ 4,936.14
EQ/FI Mid Cap $ 432.65 $ 1,328.48 $ 2,267.46 $ 4,820.69
EQ/FI Small/Mid Cap Value $ 440.20 $ 1,350.81 $ 2,303.83 $ 4,888.21
EQ/J.P. Morgan Core Bond $ 404.60 $ 1,245.23 $ 2,131.41 $ 4,565.50
EQ/Janus Large Cap Growth $ 455.40 $ 1,395.48 $ 2,376.31 $ 5,021.83
EQ/Lazard Small Cap Value $ 440.20 $ 1,350.81 $ 2,303.83 $ 4,888.21
EQ/Marsico Focus $ 453.22 $ 1,389.09 $ 2,365.98 $ 5,002.85
EQ/Mercury Basic Value Equity $ 420.79 $ 1,293.32 $ 2,210.09 $ 4,713.58
EQ/Mercury International Value $ 457.59 $ 1,401.86 $ 2,386.64 $ 5,040.77
EQ/MFS Emerging Growth Companies $ 426.18 $ 1,309.31 $ 2,236.20 $ 4,762.42
EQ/MFS Investors Trust $ 425.10 $ 1,306.11 $ 2,230.98 $ 4,752.67
- -----------------------------------------------------------------------------------------------------------
Fee table 15
- -----------------------------------------------------------------------------------------------------------
If you surrender your contract
at the end of the applicable time period
- -----------------------------------------------------------------------------------------------------------
Portfolio Name 1 year 3 years 5 years 10 years
- -----------------------------------------------------------------------------------------------------------
EQ ADVISORS TRUST:
- -----------------------------------------------------------------------------------------------------------
EQ/Money Market $ 1,190.58 $ 1,903.43 $ 2,662.80 $ 4,435.27
EQ/Putnam Growth & Income Value $ 1,224.02 $ 2,002.91 $ 2,825.76 $ 4,742.92
EQ/Putnam Voyager $ 1,232.65 $ 2,028.48 $ 2,867.46 $ 4,820.69
EQ/Small Company Index $ 1,213.23 $ 1,970.90 $ 2,773.43 $ 4,644.77
EQ/Technology $ 1,255.40 $ 2,095.48 $ 2,976.31 $ 5,021.83
- ------------------------------------------------------------------------------------------------------------
BARR ROSENBERG VARIABLE INSURANCE TRUST:
- ------------------------------------------------------------------------------------------------------------
Laudus Rosenberg VIT Value Long/Short Equity $ 1,944.34 $ 3,975.37 $ 5,813.12 $ 9,330.76
- ------------------------------------------------------------------------------------------------------------
THE UNIVERSAL INSTITUTIONAL FUNDS, INC.:
- ------------------------------------------------------------------------------------------------------------
U.S. Real Estate -- Class II $ 1,279.42 $ 2,165.51 $ 3,089.44 $ 5,227.93
- ------------------------------------------------------------------------------------------------------------
- -------------------------------------------------------------------------------------------------------------
If you annuitize at the end of the
applicable time period
- -------------------------------------------------------------------------------------------------------------
Portfolio Name 1 year 3 years 5 years 10 years
- -------------------------------------------------------------------------------------------------------------
EQ ADVISORS TRUST:
- --------------------------------------------------------------------------------------------------------
EQ/Money Market $ 740.58 $ 1,553.43 $ 2,412.80 $ 4,785.27
EQ/Putnam Growth & Income Value $ 774.02 $ 1,652.91 $ 2,575.76 $ 5,092.92
EQ/Putnam Voyager $ 782.65 $ 1,678.48 $ 2,617.46 $ 5,170.69
EQ/Small Company Index $ 763.23 $ 1,620.90 $ 2,523.43 $ 4,994.77
EQ/Technology $ 805.40 $ 1,745.48 $ 2,726.31 $ 5,371.83
- -------------------------------------------------------------------------------------------------------------
BARR ROSENBERG VARIABLE INSURANCE TRUST:
- -------------------------------------------------------------------------------------------------------------
Laudus Rosenberg VIT Value Long/Short Equity $ 1,494.34 $ 3,625.37 $ 5,563.12 $ 9,680.76
- -------------------------------------------------------------------------------------------------------------
THE UNIVERSAL INSTITUTIONAL FUNDS, INC.:
- -------------------------------------------------------------------------------------------------------------
U.S. Real Estate -- Class II $ 829.42 $ 1,815.51 $ 2,839.44 $ 5,577.93
- -------------------------------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------------
If you do not surrender your contract
at the end of the applicable time period
- -----------------------------------------------------------------------------------------------------
Portfolio Name 1 year 3 years 5 years 10 years
- -----------------------------------------------------------------------------------------------------
EQ ADVISORS TRUST:
- -----------------------------------------------------------------------------------------------------
EQ/Money Market $ 390.58 $ 1,203.43 $ 2,062.80 $ 4,435.27
EQ/Putnam Growth & Income Value $ 424.02 $ 1,302.91 $ 2,225.76 $ 4,742.92
EQ/Putnam Voyager $ 432.65 $ 1,328.48 $ 2,267.46 $ 4,820.69
EQ/Small Company Index $ 413.23 $ 1,270.90 $ 2,173.43 $ 4,644.77
EQ/Technology $ 455.40 $ 1,395.48 $ 2,376.31 $ 5,021.83
- ------------------------------------------------------------------------------------------------------
BARR ROSENBERG VARIABLE INSURANCE TRUST:
- ------------------------------------------------------------------------------------------------------
Laudus Rosenberg VIT Value Long/Short Equity $ 1,144.34 $ 3,275.37 $ 5,213.12 $ 9,330.76
- ------------------------------------------------------------------------------------------------------
THE UNIVERSAL INSTITUTIONAL FUNDS, INC.:
- ------------------------------------------------------------------------------------------------------
U.S. Real Estate -- Class II $ 479.42 $ 1,465.51 $ 2,489.44 $ 5,227.93
- ------------------------------------------------------------------------------------------------------
16 Fee table
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 periods shown for each of the
variable investment options available as of December 31, 2003.
Fee table 17
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 initial contribution of $10,000 for you
to purchase a contract. You may make additional contributions of at least $500
each for NQ, QP and Rollover TSA contracts and $50 each for IRA contracts,
subject to limitations noted below. 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.
We may refuse to accept any contribution if the sum of all contributions under
all Equitable Accumulator(R) series contracts with the same annuitant would
then total more than $1,500,000. We reserve the right to limit aggregate
contributions made after the first contract year to 150% of first-year
contributions. 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. We may accept less than the minimum
initial contribution under a contract if an aggregate amount of contracts
purchased at the same time by an individual (including spouse) meets the
minimum.
- --------------------------------------------------------------------------------
The "annuitant" is the person who is the measuring life for determining
contract benefits. The annuitant is not necessarily the contract owner.
- --------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------------------------------------------
Available
Contract for annuitant Limitations on
type issue ages Source of contributions contributions
- ----------------------------------------------------------------------------------------------------------------------------------
NQ Available Source of contributions Limitations on
for annuitant contributions
issue ages
- ----------------------------------------------------------------------------------------------------------------------------------
NQ 0 through 80 o After-tax money. o No additional contributions after attainment
of age 81 or, if later, the first contract
o Paid to us by check or transfer of contract anniversary.
value in a tax-deferred exchange under
Section 1035 of the Internal Revenue Code.
- ----------------------------------------------------------------------------------------------------------------------------------
Rollover IRA 20 through 80 o Eligible rollover distributions from TSA con- o No contributions after attainment of age 81
tracts or other 403(b) arrangements, or, if later, the first contract anniversary.
qualified plans, and governmental employer
457(b) plans. o Contributions after age 70-1/2 must be net of
required minimum distributions.
o Rollovers from another traditional individual
retirement arrangement. o Although we accept regular IRA contribu-
tions (limited to $3,000 for 2004 and
o Direct custodian-to-custodian transfers from $4,000 for 2005) under Rollover IRA con-
another traditional individual retirement tracts, we intend that this contract be used
arrangement. primarily for rollover and direct transfer
contributions.
o Regular IRA contributions.
o Additional catch-up contributions of up to
o Additional "catch-up" contributions. $500 can be made for the calendar year
2004 or 2005 where the owner is at least
age 50 but under age 70-1/2 at any time dur-
ing the calendar year for which the
contribution is made.
- ----------------------------------------------------------------------------------------------------------------------------------
18 Contract features and benefits
- ----------------------------------------------------------------------------------------------------------------------------------
Available
Contract for annuitant Limitations on
type issue ages Source of contributions contributions
- ----------------------------------------------------------------------------------------------------------------------------------
Roth Conversion 20 through 80 o Rollovers from another Roth IRA. o No additional rollover or direct transfer con-
IRA tributions after attainment of age 81, or, if
o Conversion rollovers from a traditional IRA. later, the first contract anniversary.
o Direct transfers from another Roth IRA. o Conversion rollovers after age 70-1/2 must be
net of required minimum distributions for the
o Regular Roth IRA contributions. traditional IRA you are rolling over.
o Additional catch-up contributions. o You cannot roll over funds from a traditional
IRA if your adjusted gross income is
$100,000 or more.
o Although we accept regular Roth IRA contri-
butions (limited to $3,000 for 2004 and
$4,000 for 2005) under the Roth IRA con-
tracts, we intend that this contract be used
primarily for rollover and direct transfer
contributions.
o Additional catch-up contributions of up to
$500 can be made for the calendar year
2004 or 2005 where the owner is at least
age 50 at any time during the calendar year
for which the contribution is made.
- -----------------------------------------------------------------------------------------------------------------------------------
Rollover TSA 20 through 80 o Direct transfers of pre-tax funds from o Additional rollover or direct transfer contri-
another contract or arrangement under butions may be made up to attainment of
Section 403(b) of the Internal Revenue age 81 or, if later, the first contract
Code, complying with IRS Revenue Ruling anniversary.
90-24.
o Rollover or direct transfer contributions after
o Eligible rollover distributions of pre-tax age 70-1/2 must be net of any required mini-
funds from other 403(b) plans. Subsequent mum distributions.
contributions may also be rollovers from
qualified plans, governmental employer o We do not accept employer-remitted
457(b) plans and traditional IRAs. contributions.
- -----------------------------------------------------------------------------------------------------------------------------------
QP 20 through 70 o Only transfer contributions from an existing o We do not accept regular ongoing payroll
defined contribution qualified plan trust. contributions.
o The plan must be qualified under Section o Only one additional transfer contribution
401(a) of the Internal Revenue Code. may be made during a contract year.
o For 401(k) plans, transferred contributions o No additional transfer contributions after
may only include employee pre-tax attainment of age 71, or, if later, the first
contributions. contract anniversary.
o A separate QP contract must be established
for each plan participant.
o We do not accept employer-remitted
contributions.
o We do not accept contributions from defined
benefit plans.
See Appendix II at the end of this Prospectus for a discussion of purchase considerations of QP contracts.
- -----------------------------------------------------------------------------------------------------------------------------------
See "Tax information" later in this Prospectus and in the SAI for a more
detailed discussion of sources of contributions and certain contribution
limitations. For information on when contributions are credited under your
contract see "Dates and prices at which contract events occur" in "More
information" later in this Prospectus.
Contract features and benefits 19
OWNER AND ANNUITANT REQUIREMENTS
Under NQ contracts, the annuitant can be different from 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. In general we
will not permit a contract to be owned by a minor unless it is pursuant to the
Uniform Gifts to Minors Act or the Uniform Transfers to Minors Act in your
state.
Under all IRA and Rollover TSA contracts, the owner and annuitant must be the
same person. In some cases, an IRA contract may be held in a custodial
individual retirement account for the benefit of the individual annuitant. This
option may not be available under your contract.
Under QP contracts, the owner must be the trustee of the qualified plan and the
annuitant must be the plan participant/employee. See Appendix II at the end of
this Prospectus for more information on QP contracts.
- --------------------------------------------------------------------------------
A participant is an individual who is currently, or was formerly, participating
in an eligible employer's qualified plan or TSA plan.
- --------------------------------------------------------------------------------
HOW YOU CAN MAKE YOUR CONTRIBUTIONS
Except as noted below, contributions must be 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.
For your convenience, we will accept initial and additional contributions by
wire transmittal from certain broker-dealers who have agreements with us for
this purpose, including circumstances under which such contributions are
considered received by us when your order is taken by such broker-dealers.
Additional contributions may also be made under our automatic investment
program. These methods of payment are 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 payments. 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.
- --------------------------------------------------------------------------------
Our "business day" is generally any day the New York Stock Exchange is open for
trading and generally ends at 4:00 p.m. Eastern Time. A business day does not
include a 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/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.
- --------------------------------------------------------------------------------
20 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 the Accumulator(R) Plus
contract.(SM) 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.
Equitable Life serves as the investment manager of the Portfolios of the EQ
Advisors Trust and the AXA Premier VIP Trust. 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. The
advisers for these Portfolios, listed in the chart below, are those who make
the investment decisions for each Portfolio. The chart also
indicates the investment manager for each of the other Portfolios.
- ------------------------------------------------------------------------------------------------------------------------------
AXA Premier VIP Trust
Portfolio Name Objective
- ------------------------------------------------------------------------------------------------------------------------------
AXA AGGRESSIVE ALLOCATION Seeks long-term capital appreciation.
- ------------------------------------------------------------------------------------------------------------------------------
AXA CONSERVATIVE ALLOCATION Seeks a high level of current income.
- ------------------------------------------------------------------------------------------------------------------------------
AXA CONSERVATIVE-PLUS Seeks current income and growth of capital, with a
ALLOCATION greater emphasis on current income.
- ------------------------------------------------------------------------------------------------------------------------------
AXA MODERATE ALLOCATION Seeks long-term capital appreciation and current income.
- ------------------------------------------------------------------------------------------------------------------------------
AXA MODERATE-PLUS Seeks long-term capital appreciation and current income,
ALLOCATION with a greater emphasis on capital appreciation.
- ------------------------------------------------------------------------------------------------------------------------------
AXA PREMIER VIP AGGRESSIVE Seeks long-term growth of capital.
EQUITY
- ------------------------------------------------------------------------------------------------------------------------------
AXA PREMIER VIP CORE BOND Seeks a balance of high current income and capital
appreciation, consistent with a prudent level of risk.
- ------------------------------------------------------------------------------------------------------------------------------
AXA PREMIER VIP HEALTH CARE Seeks long-term growth of capital.
- ------------------------------------------------------------------------------------------------------------------------------
AXA PREMIER VIP HIGH YIELD Seeks high total return through a combination of current
income and capital appreciation.
- ------------------------------------------------------------------------------------------------------------------------------
AXA PREMIER VIP Seeks long-term growth of capital.
INTERNATIONAL EQUITY
- ------------------------------------------------------------------------------------------------------------------------------
AXA PREMIER VIP LARGE CAP Seeks long-term growth of capital.
CORE EQUITY
- ------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------
AXA Premier VIP Trust
Portfolio Name Adviser(s)
- ------------------------------------------------------------------------------------------------------------------------------
AXA AGGRESSIVE ALLOCATION o Equitable Life
- ------------------------------------------------------------------------------------------------------------------------------
AXA CONSERVATIVE ALLOCATION o Equitable Life
- ------------------------------------------------------------------------------------------------------------------------------
AXA CONSERVATIVE-PLUS o Equitable Life
ALLOCATION
- ------------------------------------------------------------------------------------------------------------------------------
AXA MODERATE ALLOCATION o Equitable Life
- ------------------------------------------------------------------------------------------------------------------------------
AXA MODERATE-PLUS o Equitable Life
ALLOCATION
- ------------------------------------------------------------------------------------------------------------------------------
AXA PREMIER VIP AGGRESSIVE o Alliance Capital Management L.P.
EQUITY o MFS Investment Management
o Marsico Capital Management, LLC
o Provident Investment Counsel, Inc.
- ------------------------------------------------------------------------------------------------------------------------------
AXA PREMIER VIP CORE BOND o BlackRock Advisors, Inc.
o Pacific Investment Management Company
LLC
- ------------------------------------------------------------------------------------------------------------------------------
AXA PREMIER VIP HEALTH CARE o A I M Capital Management, Inc.
o RCM Capital Management LLC
o Wellington Management Company, LLP
- ------------------------------------------------------------------------------------------------------------------------------
AXA PREMIER VIP HIGH YIELD o Alliance Capital Management L.P.
o Pacific Investment Management Company
LLC
- ------------------------------------------------------------------------------------------------------------------------------
AXA PREMIER VIP o Alliance Capital Management L.P., through its
INTERNATIONAL EQUITY Bernstein Investment Research and Manage-
ment Unit
o Bank of Ireland Asset Management
(U.S.) Limited
o Marsico Capital Management, LLC
- ------------------------------------------------------------------------------------------------------------------------------
AXA PREMIER VIP LARGE CAP o Alliance Capital Management L.P., through its
CORE EQUITY Bernstein Investment Research and Manage-
ment Unit
o Janus Capital Management LLC
o Thornburg Investment Management, Inc.
- ------------------------------------------------------------------------------------------------------------------------------
Contract features and benefits 21
Portfolios of the Trusts (continued)
- -----------------------------------------------------------------------------------------------------------------------------------
AXA Premier VIP Trust
Portfolio Name Objective Adviser(s)
- -----------------------------------------------------------------------------------------------------------------------------------
AXA PREMIER VIP LARGE CAP Seeks long-term growth of capital. o Alliance Capital Management L.P.
GROWTH o RCM Capital Management LLC
o TCW Investment Management Company
- -----------------------------------------------------------------------------------------------------------------------------------
AXA PREMIER VIP LARGE CAP Seeks long-term growth of capital. o Alliance Capital Management L.P.
VALUE o Institutional Capital Corporation
o MFS Investment Management
- -----------------------------------------------------------------------------------------------------------------------------------
AXA PREMIER VIP SMALL/MID Seeks long-term growth of capital. o Alliance Capital Management L.P.
CAP GROWTH o Franklin Advisers, Inc.
o Provident Investment Counsel, Inc.
- -----------------------------------------------------------------------------------------------------------------------------------
AXA PREMIER VIP SMALL/MID Seeks long-term growth of capital. o AXA Rosenberg Investment Management LLC
CAP VALUE o TCW Investment Management Company
o Wellington Management Company, LLP
- -----------------------------------------------------------------------------------------------------------------------------------
AXA PREMIER VIP TECHNOLOGY Seeks long-term growth of capital. o Firsthand Capital Management, Inc.
o RCM Capital Management LLC
o Wellington Management Company, LLP
- -----------------------------------------------------------------------------------------------------------------------------------
EQ Advisors Trust
Portfolio Name Objective Adviser(s)
- -----------------------------------------------------------------------------------------------------------------------------------
EQ/ALLIANCE COMMON STOCK Seeks to achieve long-term growth of capital. o Alliance Capital Management L.P.
- -----------------------------------------------------------------------------------------------------------------------------------
EQ/ALLIANCE GROWTH AND Seeks to provide a high total return. o Alliance Capital Management L.P.
INCOME
- -----------------------------------------------------------------------------------------------------------------------------------
EQ/ALLIANCE INTERMEDIATE Seeks to achieve high current income consistent with o Alliance Capital Management L.P.
GOVERNMENT SECURITIES relative stability of principal.
- -----------------------------------------------------------------------------------------------------------------------------------
EQ/ALLIANCE INTERNATIONAL Seeks to achieve long-term growth of capital. o Alliance Capital Management L.P.
- -----------------------------------------------------------------------------------------------------------------------------------
EQ/ALLIANCE PREMIER GROWTH Seeks to achieve long-term growth of capital. o Alliance Capital Management L.P.
- -----------------------------------------------------------------------------------------------------------------------------------
EQ/ALLIANCE QUALITY BOND Seeks to achieve high current income consistent with o Alliance Capital Management L.P.
moderate risk to capital.
- -----------------------------------------------------------------------------------------------------------------------------------
EQ/ALLIANCE SMALL CAP Seeks to achieve long-term growth of capital. o Alliance Capital Management L.P.
GROWTH
- -----------------------------------------------------------------------------------------------------------------------------------
EQ/BERNSTEIN DIVERSIFIED VALUE Seeks capital appreciation. o Alliance Capital Management L.P.,
through its Bernstein Investment Research
and Management Unit
- -----------------------------------------------------------------------------------------------------------------------------------
EQ/CALVERT SOCIALLY Seeks long-term capital appreciation. o Calvert Asset Management Company, Inc.
RESPONSIBLE and Brown Capital Management, Inc.
- -----------------------------------------------------------------------------------------------------------------------------------
22 Contract features and benefits
Portfolios of the Trusts (continued)
- ------------------------------------------------------------------------------------------------------------------------------
EQ Advisors Trust
Portfolio Name Objective
- ------------------------------------------------------------------------------------------------------------------------------
EQ/CAPITAL GUARDIAN To achieve long-term growth of capital.
INTERNATIONAL
- ------------------------------------------------------------------------------------------------------------------------------
EQ/CAPITAL GUARDIAN Seeks to achieve long-term growth of capital.
RESEARCH
- ------------------------------------------------------------------------------------------------------------------------------
EQ/CAPITAL GUARDIAN U.S. Seeks to achieve long-term growth of capital.
EQUITY
- ------------------------------------------------------------------------------------------------------------------------------
EQ/EMERGING MARKETS EQUITY Seeks long-term capital appreciation.
- ------------------------------------------------------------------------------------------------------------------------------
EQ/EQUITY 500 INDEX Seeks a total return before expenses that approximates
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.
- ------------------------------------------------------------------------------------------------------------------------------
EQ/FI MID CAP Seeks long-term growth of capital.
- ------------------------------------------------------------------------------------------------------------------------------
EQ/FI SMALL/MID CAP VALUE Seeks long-term capital appreciation.
- ------------------------------------------------------------------------------------------------------------------------------
EQ/J.P. MORGAN CORE BOND Seeks to provide a high total return consistent with mod-
erate risk to capital and maintenance of liquidity.
- ------------------------------------------------------------------------------------------------------------------------------
EQ/JANUS LARGE CAP GROWTH Seeks long-term growth of capital.
- ------------------------------------------------------------------------------------------------------------------------------
EQ/LAZARD SMALL CAP VALUE Seeks capital appreciation.
- ------------------------------------------------------------------------------------------------------------------------------
EQ/MARSICO FOCUS Seeks long-term growth of capital.
- ------------------------------------------------------------------------------------------------------------------------------
EQ/MERCURY BASIC VALUE Seeks capital appreciation and secondarily, income.
EQUITY
- ------------------------------------------------------------------------------------------------------------------------------
EQ/MERCURY INTERNATIONAL Seeks capital appreciation.
VALUE
- ------------------------------------------------------------------------------------------------------------------------------
EQ/MFS EMERGING GROWTH Seeks to provide long-term capital growth.
COMPANIES
- ------------------------------------------------------------------------------------------------------------------------------
EQ/MFS INVESTORS TRUST Seeks long-term growth of capital with secondary objec-
tive to seek reasonable current income.
- ------------------------------------------------------------------------------------------------------------------------------
EQ/MONEY MARKET Seeks to obtain a high level of current income, preserve
its assets and maintain liquidity.
- ------------------------------------------------------------------------------------------------------------------------------
EQ/PUTNAM GROWTH & INCOME Seeks capital growth. Current income is a secondary
VALUE objective.
- ------------------------------------------------------------------------------------------------------------------------------
EQ/PUTNAM VOYAGER Seeks long-term growth of capital and any increased
income that results from this growth.
- ------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------
EQ Advisors Trust
Portfolio Name Adviser(s)
- ------------------------------------------------------------------------------------------------------------------------------
EQ/CAPITAL GUARDIAN o Capital Guardian Trust Company
INTERNATIONAL
- ------------------------------------------------------------------------------------------------------------------------------
EQ/CAPITAL GUARDIAN o Capital Guardian Trust Company
RESEARCH
- ------------------------------------------------------------------------------------------------------------------------------
EQ/CAPITAL GUARDIAN U.S. o Capital Guardian Trust Company
EQUITY
- ------------------------------------------------------------------------------------------------------------------------------
EQ/EMERGING MARKETS EQUITY o Morgan Stanley Investment Management,
Inc.
- ------------------------------------------------------------------------------------------------------------------------------
EQ/EQUITY 500 INDEX o Alliance Capital Management L.P.
- ------------------------------------------------------------------------------------------------------------------------------
EQ/EVERGREEN OMEGA o Evergreen Investment Management
Company, LLC
- ------------------------------------------------------------------------------------------------------------------------------
EQ/FI MID CAP o Fidelity Management & Research Company
- ------------------------------------------------------------------------------------------------------------------------------
EQ/FI SMALL/MID CAP VALUE o Fidelity Management & Research Company
- ------------------------------------------------------------------------------------------------------------------------------
EQ/J.P. MORGAN CORE BOND o J.P. Morgan Investment Management Inc.
- ------------------------------------------------------------------------------------------------------------------------------
EQ/JANUS LARGE CAP GROWTH o Janus Capital Management LLC
- ------------------------------------------------------------------------------------------------------------------------------
EQ/LAZARD SMALL CAP VALUE o Lazard Asset Management, LLC
- ------------------------------------------------------------------------------------------------------------------------------
EQ/MARSICO FOCUS o Marsico Capital Management, LLC
- ------------------------------------------------------------------------------------------------------------------------------
EQ/MERCURY BASIC VALUE o Mercury Advisors
EQUITY
- ------------------------------------------------------------------------------------------------------------------------------
EQ/MERCURY INTERNATIONAL o Merrill Lynch Investment Managers Interna-
VALUE tional Limited
- ------------------------------------------------------------------------------------------------------------------------------
EQ/MFS EMERGING GROWTH o MFS Investment Management
COMPANIES
- ------------------------------------------------------------------------------------------------------------------------------
EQ/MFS INVESTORS TRUST o MFS Investment Management
- ------------------------------------------------------------------------------------------------------------------------------
EQ/MONEY MARKET o Alliance Capital Management L.P.
- ------------------------------------------------------------------------------------------------------------------------------
EQ/PUTNAM GROWTH & INCOME o Putnam Investment Management, LLC
VALUE
- ------------------------------------------------------------------------------------------------------------------------------
EQ/PUTNAM VOYAGER o Putnam Investment Management, LLC
- ------------------------------------------------------------------------------------------------------------------------------
Contract features and benefits 23
Portfolios of the Trusts (continued)
- ------------------------------------------------------------------------------------------------------------------------------
EQ Advisors Trust
Portfolio Name Objective
- ------------------------------------------------------------------------------------------------------------------------------
EQ/SMALL COMPANY INDEX Seeks to replicate as closely as possible (before the
deduction of portfolio expenses) the total return of the
Russell 2000 Index.
- ------------------------------------------------------------------------------------------------------------------------------
EQ/TECHNOLOGY Seeks to achieve long-term growth of capital.
- ------------------------------------------------------------------------------------------------------------------------------
Barr Rosenberg Variable
Insurance Trust
Portfolio Name Objective
- ------------------------------------------------------------------------------------------------------------------------------
LAUDUS ROSENBERG VIT VALUE Seeks to increase the value of your investment in bull
LONG/SHORT EQUITY markets and bear markets through strategies that are
designed to have limited exposure to general equity
market risk.
- ------------------------------------------------------------------------------------------------------------------------------
The Universal Institutional
Funds, Inc.
Portfolio Name Objective
- ------------------------------------------------------------------------------------------------------------------------------
U.S. REAL ESTATE -- Class II(1) Seeks to provide above average current income and long-
term capital appreciation by investing primarily in equity
securities of companies in the U.S. real estate industry,
including real estate investment trusts.
- ------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------
EQ Advisors Trust
Portfolio Name Adviser(s)
- ------------------------------------------------------------------------------------------------------------------------------
EQ/SMALL COMPANY INDEX o Alliance Capital Management L.P.
- ------------------------------------------------------------------------------------------------------------------------------
EQ/TECHNOLOGY o Firsthand Capital Management, Inc.
o RCM Capital Management LLC
o Wellington Management Company, LLP
- ------------------------------------------------------------------------------------------------------------------------------
Barr Rosenberg Variable
Insurance Trust
Portfolio Name Investment Manager/Adviser
- ------------------------------------------------------------------------------------------------------------------------------
LAUDUS ROSENBERG VIT VALUE o Charles Schwab Investment Management,
LONG/SHORT EQUITY Inc.
o AXA Rosenberg Investment Management LLC
- ------------------------------------------------------------------------------------------------------------------------------
The Universal Institutional
Funds, Inc.
- ------------------------------------------------------------------------------------------------------------------------------
Portfolio Name Investment Manager
- ------------------------------------------------------------------------------------------------------------------------------
U.S. REAL ESTATE -- Class II(1) o Van Kampen(2)
- ------------------------------------------------------------------------------------------------------------------------------
(1) "Class II" shares are defined in the current underlying Trust prospectus.
(2) Van Kampen is the name under which Morgan Stanley Investment Management
Inc. does business in certain situations.
You should consider the investment objectives, risks and charges and expenses
of the Portfolios carefully before investing. The prospectuses for the Trusts
contain this and other important information about the Portfolios. The
prospectuses should be read carefully before investing. In order to obtain
copies of Trust prospectuses that do not accompany this Prospectus, you may
call one of our customer service representatives at 1-800-789-7771.
24 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. We reserve the right to change these procedures.
All interest rates are effective annual rates, but before deduction of annual
administrative charges (if permitted in your state) or any withdrawal charges.
The minimum yearly guaranteed interest rate is 3% for 2004. 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.
See "Transferring your money among the investment options" later in this
Prospectus for restrictions on transfers from the Guaranteed interest option.
FIXED MATURITY OPTIONS
We offer fixed maturity options with maturity dates ranging from one to ten
years. We will not accept allocations to a fixed maturity option if on the date
the contribution or transfer is to be applied the rate to maturity is 3%. This
means that at points in time there may be no fixed maturity options available.
You can allocate your contributions to one or more of these fixed maturity
options, however, you may not have more than 12 different maturities running
during any contract year. These amounts become part of a non-unitized separate
account. 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 all states. Check with your financial professional
to see if fixed maturity options are available in your state.
- --------------------------------------------------------------------------------
Fixed maturity options generally 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.
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 amounts 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 offer fixed maturity options with
maturity dates ranging from one to ten years. Not all of these fixed maturity
options will be available for annuitant ages 76 and older. See "Allocating your
contributions" below.
Each new contribution is applied to a new fixed maturity option. When you apply
for an Accumulator(R) Plus(SM) contract, a 60-day rate lock-in will apply from
the date the application is signed. Any contributions received and designated
for a fixed maturity option during this period will receive the then current
fixed maturity option rate or the rate that was in effect on the date that the
application was signed, whichever is greater. There is no rate lock available
for subsequent contributions to the contract after 60 days, transfers from the
variable investment options or the guaranteed interest option into a fixed
maturity option or transfers from one fixed maturity option to another.
YOUR CHOICES AT THE MATURITY DATE. We will notify you between 15 and 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 in "Allocating your
contributions," below would apply:
(a) transfer the maturity value into another available fixed maturity option,
any of the variable investment options or the guaranteed interest option;
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
shortest available maturity option beginning on that date. As of February 13,
2004, the next available maturity date was February 13, 2012. If no fixed
maturity options are available, we will transfer your maturity value to the
EQ/Money Market option.
MARKET VALUE ADJUSTMENT. If you make any withdrawals (including transfers,
surrender 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 in effect at that time for new fixed maturity
options (adjusted to reflect a similar maturity date), 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
Contract features and benefits 25
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.
ALLOCATING YOUR CONTRIBUTIONS
You may choose from among three ways to allocate your contributions under your
contract: self-directed, principal assurance, or dollar cost averaging.
SELF-DIRECTED ALLOCATION
You may allocate your contributions to one or more, or all, of the variable
investment options, guaranteed interest option and fixed maturity options.
Allocations must be in whole percentages and you may change your allocations at
any time. No more than 25% of any contribution may be allocated to the
guaranteed interest option. The total of your allocations into all available
investment options must equal 100%. If the annuitant is age 76-80, you may
allocate contributions to fixed maturity options with maturities of seven years
or less. If the annuitant is age 81 or older, you may allocate contributions to
fixed maturity options with maturities of five years or less. Also you may not
allocate amounts to fixed maturity options with maturity dates that are later
than the date annuity payments are to begin.
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 (plus any applicable credit) on the fixed
maturity option's maturity date. The maturity date you select generally may not
be later than 10 years, or earlier than 7 years from your contract date. If you
make any withdrawals or transfers from the fixed maturity option before the
option's maturity date, the amount in the fixed maturity option will be
adjusted and may no longer grow to equal your initial contribution under the
principal insurance allocation. Principal assurance will not be available if
none of those maturity dates is available. You allocate the rest of your
contribution to the investment options and guaranteed interest option however
you choose.
For example, if your initial contribution is $10,000 and on February 13, 2004
you chose the fixed maturity option with a maturity date of February 13, 2014,
since the rate to maturity was 3.73% on February 13, 2004, we would have
allocated $7,209 to that fixed maturity option and the balance to your choice
of variable investment options and guaranteed interest option. On the maturity
date your value in the fixed maturity option would be $10,400.
The principal assurance allocation is only available for annuitants ages 80 or
younger when the contract is issued. If the annuitant is age 76-80, your
principal assurance allocation is limited to the seven year fixed maturity
option only. If you anticipate taking required minimum distributions, you
should consider whether your values in the variable investment options and
guaranteed interest option are sufficient to meet your required minimum
distributions. See "Tax information" later in this Prospectus and in the SAI.
Please check with your financial professional to see if the principal assurance
allocation feature is available in your state.
DOLLAR COST AVERAGING
We offer a variety of dollar cost averaging programs. You may only participate
in one program at a time. Each program 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. You may not make
transfers to the fixed maturity options.
- --------------------------------------------------------------------------------
Units measure your value in each variable investment option.
- --------------------------------------------------------------------------------
GENERAL DOLLAR COST AVERAGING PROGRAM. If your value in the EQ/Money Market
option is at least $5,000, you may choose, at any time, to have a specified
dollar amount or percentage of your value transferred from that option to the
other variable investment options. You can select to have transfers made on a
monthly, quarterly or annual basis. The transfer date will be the same calendar
day of the month as the contract date, but not later than the 28th day of the
month. You can also specify the number of transfers or instruct us to continue
making the transfers until all amounts in the EQ/Money Market option have been
transferred out.
The minimum amount that we will transfer each time is $250. The maximum amount
we will transfer is equal to your value in the EQ/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/Money Market option is equal to
or less than the amount you have elected to have transferred, the entire amount
will be transferred. The dollar cost averaging program will then end. You may
change the transfer amount once each contract year or cancel this program at
any time.
INVESTMENT SIMPLIFIER
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. Transfers may be made on a monthly,
quarterly or annual basis. You can specify the number of transfers or instruct
us to continue to make 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
26 Contract features and benefits
election form at our processing office. The transfer date will be the same
calendar day of the month as the contract date but not later than the 28th day
of the month. The minimum transfer amount is $50. The fixed-dollar option is
subject to the guaranteed interest option transfer limitations described under
"Transferring your account value" in "Transferring your money among investment
options" later in this Prospectus. While the program is running, any transfer
that exceeds those limitations will cause the program to end for that contract
year. You will be notified. You must send in a request form to resume the
program in the next or subsequent contract years.
If, on any transfer date, your value in the guaranteed interest option is equal
to or less than the amount you have elected to have transferred, the entire
amount will be transferred, and the program will end. You may change the
transfer amount once each contract year or cancel this program at any time.
Interest sweep option. Under this option, you may elect to have monthly
transfers from amounts in the guaranteed interest option into the variable
investment options of your choice. The transfer date will be the last business
day of the month. 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. We will automatically cancel the interest sweep
program if the amount in the guaranteed interest option is less than $7,500 on
the last day of the month for two months in a row. For the interest sweep
option, 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.
----------------
You may not participate in any dollar cost averaging program if you are
participating in the rebalancing program. See "Transferring your money among
investment options" later in this Prospectus.
CREDITS
A credit will also be allocated to your account value at the same time that we
allocate your contribution. Credits are allocated to the same investment
options based on the same percentages used to allocate your contributions.
The amount of the credit will be 4%, 4.5% or 5% of each contribution based on
the following breakpoints and rules:
- -----------------------------------------------------------------
Credit percentage
First year total contributions* applied to
Breakpoints contributions
- -----------------------------------------------------------------
Less than $500,000 4%
- -----------------------------------------------------------------
$500,000-$999,999.99 4.5%
- -----------------------------------------------------------------
- -----------------------------------------------------------------
Credit percentage
First year total contributions* applied to
Breakpoints contributions
- -----------------------------------------------------------------
$1 million or more 5%
- -----------------------------------------------------------------
- ----------
* First year total contributions means your total contributions made in the
first contract year.
The percentage of the credit is based on your first year total contributions.
This credit percentage will be credited to each contribution made in the first
year (after adjustment as described below), as well as the second and later
contract years. Although the credit, as adjusted at the end of the first
contract year, will be based upon first year total contributions, the following
rules affect the percentage with which contributions made in the first contract
year are credited during the first contract year:
o Indication of intent: If you indicate in the application at the time you
purchase your contract an intention to make additional contributions to
meet one of the breakpoints (the "Expected First Year Contribution
Amount") and your initial contribution is at least 50% of the Expected
First Year Contribution Amount, your credit percentage will be as follows:
o For any contributions resulting in total contributions to date less than
or equal to your Expected First Year Contribution Amount, the credit
percentage will be the percentage that applies to the Expected First Year
Contribution Amount based on the table above.
o For any subsequent contribution that results in your total contributions
to date exceeding your Expected First Year Contribution Amount, such that
the credit percentage should have been higher, we will increase the
credit percentage applied to that contribution, as well as any prior or
subsequent contributions made in the first contract year, accordingly.
o For contracts issued in New York, the "Indication of intent" approach to
first year contributions is not available.
o No indication of intent:
o For your initial contribution we will apply the credit percentage based
upon the above table.
o For any subsequent contribution that results in a higher applicable
credit percentage (based on total contributions to date), we will
increase the credit percentage applied to that contribution, as well as
any prior or subsequent contributions made in the first contract year,
accordingly.
We may recover all of the credit or a portion of the credit in the following
situations:
o If you exercise your right to cancel the contract, we will recover the entire
credit made to your contract (see "Your right to cancel within a certain
number of days" later in this Prospectus)(1)
- ---------
(1) The amount we return to you upon exercise of this right to cancel will not
include any credit or the amount of charges deducted prior to cancellation
but will reflect, except in states where we are required to return the
amount of your contributions, any investment gain or loss in the variable
investment options associated with your contributions and with the full
amount of the credit.
Contract features and benefits 27
o If you start receiving annuity payments within three years of making any
contribution, we will recover the credit that applies to any contribution
made within the prior three years.
o If at the end of the first contract year your year total contributions were
lower than your Expected First Year Contribution Amount such that the
credit applied should have been lower, we will recover any Excess Credit.
The Excess Credit is equal to the difference between the credit that was
actually applied based on your Expected First Year Contribution Amount (as
applicable) and the credit that should have been applied based on first
year total contributions.
We will recover any credit on a pro rata basis from the value in your variable
investment options and 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
the withdrawal will be withdrawn from the fixed maturity options in order of
the earliest maturing date(s). A market value adjustment may apply to
withdrawals from the fixed maturity options.
We do not consider credits to be contributions for purposes of any discussion
in this Prospectus. Credits are also not considered to be part of your
investment in the contract for tax purposes.
We use a portion of the mortality and expense risks charge and withdrawal
charge to help recover our cost of providing the credit. See "Charges and
expenses" later in this Prospectus. The charge associated with the credit may,
over time, exceed the sum of the credit and any related earnings. You should
consider this possibility before purchasing the contract.
YOUR BENEFIT BASE
A benefit base is used to calculate the guaranteed minimum income benefit and
any death benefit, as described in this section. Your benefit base is not an
account value or a cash value. See also "Our Living Benefit option" and
"Guaranteed minimum death benefit" below.
STANDARD DEATH BENEFIT. Your benefit base is equal to:
o your initial contribution and any additional contributions to the contract;
plus
o any applicable credit; less
o a deduction that reflects any withdrawals you make. (See "How withdrawals
affect your guaranteed minimum income benefit and guaranteed minimum death
benefit" in "Accessing your money" later in this Prospectus.)
6% ROLL UP TO AGE 85 ENHANCED DEATH BENEFIT. Your benefit base is equal to:
o your initial contribution and any additional contributions to the contract;
plus
o any applicable credit; plus
o daily interest; less
o a deduction that reflects any withdrawals you make (the amount of the
deduction is described under "How withdrawals affect your guaranteed
minimum income benefit and guaranteed minimum death benefit" in "Accessing
your money" later in this Prospectus.)
The effective annual interest rate credited to this benefit base is:
o 6% (4% in Washington for the enhanced death benefit only) with respect to the
variable investment options (other than EQ/Alliance Intermediate
Government Securities and EQ/Money Market); and
o 3% with respect to the EQ/Alliance Intermediate Government Securities and
EQ/Money Market, the fixed maturity options, the guaranteed interest
option and the loan reserve account under Rollover TSA (if applicable).
No interest is credited to the benefit base after the contract anniversary
following the annuitant's 85th birthday.
ANNUAL RATCHET TO AGE 85 ENHANCED DEATH BENEFIT OPTION. Your benefit base is
equal to the greater of:
o your initial contribution to the contract and any additional contributions;
plus
o any applicable credit;
or
o your highest account value on any contract anniversary up to the contract
anniversary following the annuitant's 85th birthday, plus any contribution
(and any applicable credit) made since the most recent contract
anniversary;
each less
o a deduction that reflects any withdrawals you make (the amount of the
deduction is described under "How withdrawals affect your guaranteed
minimum income benefit and guaranteed minimum death benefit" in "Accessing
your money" later in this Prospectus).
GREATER OF THE 6% ROLL UP TO AGE 85 OR THE ANNUAL RATCHET TO AGE 85 ENHANCED
DEATH BENEFIT AND THE GUARANTEED MINIMUM INCOME BENEFIT. Your benefit base is
equal to the greater of the benefit base computed for the 6% Roll up to age 85
or the benefit base computed for Annual ratchet to age 85, as described
immediately above, on each contract anniversary. For the guaranteed minimum
income benefit, the benefit base is reduced by any applicable withdrawal charge
remaining when the option is exercised.
ANNUITY PURCHASE FACTORS
Annuity purchase factors are the factors applied to determine your periodic
payments under the guaranteed minimum income benefit and annuity payout
options. The guaranteed minimum income benefit is discussed under "Our Living
Benefit option" below and annuity payout options are discussed under "Your
annuity payout options" in "Accessing your money" later in this Prospectus. The
guaranteed annuity purchase factors are those factors specified in your
contract. The current annuity purchase factors are those factors that are in
effect at any given time. Annuity purchase factors are based on interest rates,
mortality tables, frequency of payments, the form of annuity benefit, and the
annuitant's (and any joint annuitant's) age and sex in certain instances.
28 Contract features and benefits
OUR LIVING BENEFIT OPTION
The Living Benefit option offers you a guaranteed minimum income benefit. The
Living Benefit is available if the annuitant is age 20 through 75 at the time
the contract is issued. There is an additional charge for the Living Benefit
which is described under "Living Benefit charge" in "Charges and expenses"
later in this Prospectus. Please ask your financial professional if the Living
Benefit is available in your state. If you are purchasing this contract to fund
a Charitable Remainder Trust, the guaranteed minimum income benefit is
generally not available. Subject to our rules, the Living Benefit may be
available for certain split-funded Charitable Remainder Trusts.
The guaranteed minimum income benefit guarantees you a minimum amount of fixed
income under your choice of a life annuity fixed payout option or an Income
Manager level payment life with a period certain payout option subject to state
availability. You choose which of these payout options you want and whether you
want the option to be paid on a single or joint life basis at the time you
exercise your guaranteed minimum income benefit. The maximum period certain
available under the Income Manager payout option is 10 years. This period may
be shorter, depending on the annuitant's age as follows:
- -------------------------------------------
Level payments
- -------------------------------------------
Period certain
years
----------------------
Annuitant's age at
exercise IRAs NQ
- -------------------------------------------
60 to 75 10 10
76 9 10
77 8 10
78 7 10
79 7 10
80 7 10
81 7 9
82 7 8
83 7 7
84 6 6
85 5 5
- -------------------------------------------
We may also make other forms of payout options available. For a description of
payout options, see "Your annuity payout options" in "Accessing your money"
later in this Prospectus.
- --------------------------------------------------------------------------------
The guaranteed minimum income benefit, which is also known as a living benefit,
should be regarded as a safety net only. It provides income protection if you
elect an income payout while the annuitant is alive.
- --------------------------------------------------------------------------------
When you exercise the guaranteed minimum income benefit, the annual lifetime
income that you will receive will be the greater of (i) your guaranteed minimum
income benefit which is calculated by applying your guaranteed minimum income
benefit base less any outstanding loan plus accrued interest (applies to
Rollover TSA only) at guaranteed annuity purchase factors, or (ii) the income
provided by applying your actual account value at our then current annuity
purchase factors. The benefit base is applied only to the Living Benefit
guaranteed annuity purchase factors in your contract and not to any other
guaranteed or current annuity purchase rates. The amount of income you receive
will be determined when we receive your request to exercise the benefit.
When you elect to receive annual lifetime income, your contract will terminate
and you will receive a new contract for the annuity payout option. For a
discussion of when your payments will begin and end, see "Exercise of
guaranteed minimum income benefit" below.
Before you elect the Living Benefit, you should consider the fact that the
guaranteed minimum income benefit provides a form of insurance and is based on
conservative actuarial factors.
The guaranteed annuity purchase factors we use to determine your Income Manager
benefit under the Living Benefit are more conservative than the guaranteed
annuity purchase factors we use for the Income Manager payout annuity option.
This means that, assuming the same amount is applied to purchase the benefit
and that we use guaranteed annuity purchase factors to compute the benefit,
each periodic payment under the Living Benefit Income Manager will be smaller
than each periodic payment under the Income Manager payout annuity option.
Therefore, even if your account value is less than your benefit base, you may
generate more income by applying your account value to current annuity purchase
factors. We will make this comparison for you when the need arises.
ILLUSTRATIONS OF GUARANTEED MINIMUM INCOME BENEFIT. Assuming the 6% Roll up to
age 85 benefit base, the table below illustrates the guaranteed minimum income
benefit amounts per $100,000 of initial contribution, for a male annuitant age
60 (at issue) on the contract date anniversaries indicated, who has elected the
life annuity fixed payout option, using the guaranteed annuity purchase factors
as of the date of this Prospectus, assuming no additional contributions,
withdrawals or loans under Rollover TSA contracts, and assuming there were no
allocations to the EQ/Alliance Intermediate Government Securities, EQ/Money
Market, the guaranteed interest option, the fixed maturity options or the loan
reserve account under Rollover TSA contracts.
- ------------------------------------------------------
guaranteed minimum
Contract date income benefit -- annual
anniversary at exercise income payable for life
- ------------------------------------------------------
10 $12,367
15 $19,341
- ------------------------------------------------------
EXERCISE OF GUARANTEED MINIMUM INCOME BENEFIT. On each contract date
anniversary that you are eligible to exercise the guaranteed minimum income
benefit, we will send you an eligibility notice illustrating how much income
could be provided as of the contract date anniversary. You must notify us
within 30 days following the contract date anniversary if you want to exercise
the guaranteed minimum income benefit. You must return your contract to us
along with any required information in order to exercise this benefit. You will
begin receiving annual payments one year after the annuity payout contract is
issued. You may choose to take a withdrawal prior to exercising the guaranteed
minimum income benefit, which will reduce your payments. You may not partially
exercise this benefit. See "Accessing your money" under "Withdrawing your
account value" later in this Prospectus. Payments end with the last payment
before the annuitant's (or joint annuitant's, if applicable) death, or if
later, the end of the period certain (where the payout option chosen includes a
period certain).
Contract features and benefits 29
You will be eligible to exercise the guaranteed minimum income benefit as
follows:
o If the annuitant was at least age 20 and no older than age 44 when the
contract was issued, you are eligible to exercise the guaranteed minimum
income benefit within 30 days following each contract date anniversary
beginning with the 15th contract date anniversary.
o If the annuitant was at least age 45 and no older than age 49 when the
contract was issued, you are eligible to exercise the guaranteed minimum
income benefit within 30 days following each contract date anniversary
after the annuitant is age 60.
o If the annuitant was at least age 50 and no older than age 75 when the
contract was issued, you are eligible to exercise the guaranteed minimum
income benefit within 30 days following each contract date anniversary
beginning with the 10th contract date anniversary.
Please note:
(i) the latest date you may exercise the guaranteed minimum income benefit
is the contract date anniversary following the annuitant's 85th birthday;
(ii) if the annuitant was age 75 when the contract was issued, the only time
you may exercise the guaranteed minimum income benefit is within 30 days
following the first contract date anniversary that it becomes available;
(iii) if the annuitant was older than age 60 at the time an IRA, QP or
Rollover TSA contract was issued, the Living Benefit may not be an
appropriate feature because the minimum distributions required by tax law
generally must begin before the guaranteed minimum income benefit can be
exercised; and
(iv) For QP and Rollover TSA contracts, if you are eligible to exercise your
guaranteed minimum income benefit, we will first roll over amounts in such
contract to a Rollover IRA contract. You will be the owner of the Rollover
IRA contract.
(v) For a successor owner/annuitant, the earliest exercise date is based on
the original contract issue date and the age of the successor
owner/annuitant as of the Processing Date successor owner/annuitant takes
effect.
Please see both "Termination of your contract" in "Determining your contract
value" and "How withdrawals affect your guaranteed minimum income benefit and
guaranteed minimum death benefit" in "Accessing your money" later in this
Prospectus for more information on these guaranteed benefits.
GUARANTEED MINIMUM DEATH BENEFIT
Your contract provides a death benefit. If you do not elect one of the enhanced
death benefits 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 standard death benefit, whichever provides the highest
amount. The standard death benefit is equal to your total contributions, plus
any applicable credit (adjusted for any withdrawals and any withdrawal charges,
and any taxes that apply).
If you elect one of the guaranteed death benefits, the death benefit is equal
to your account value 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 your elected guaranteed
death benefit on the date of the annuitant's death (adjusted for any subsequent
withdrawals, withdrawal charges and taxes that apply) whichever provides the
highest amount.
OPTIONAL ENHANCED DEATH BENEFITS APPLICABLE FOR ANNUITANT AGES 0 THROUGH 80 AT
ISSUE OF NQ CONTRACTS; 20 THROUGH 80 AT ISSUE OF ROLLOVER IRA, ROTH CONVERSION
IRA AND ROLLOVER TSA CONTRACTS; AND 20 THROUGH 70 AT ISSUE OF QP CONTRACTS.
Subject to state availability, you may elect one of the following enhanced
death benefits:
6% ROLL UP TO AGE 85.
ANNUAL RATCHET TO AGE 85.
THE GREATER OF THE 6% ROLL UP TO AGE 85 OR THE ANNUAL RATCHET TO AGE 85.
Each enhanced death benefit is equal to its corresponding benefit base
described earlier in "Your benefit base." Once you have made your enhanced
death benefit election, you may not change it.
----------------------------------
In New York only the Standard death benefit and the Annual ratchet to age 85
enhanced death benefit are available.
Please see both "Termination of your contract" in "Determining your contract
value" and "How withdrawals affect your guaranteed minimum income benefit and
guaranteed minimum death benefit" in "Accessing your money" later in this
Prospectus for more information on these guaranteed benefits.
See Appendix IV at the end of this Prospectus for an example of how we
calculate an enhanced minimum death benefit.
PROTECTION PLUS
Subject to state and contract availability, if you are purchasing a contract,
under which the Protection Plus feature is available, you may elect the
Protection Plus death benefit at the time you purchase your contract.
Protection Plus provides an additional death benefit as described below. See
the appropriate part of "Tax information" later in this Prospectus for the
potential tax consequences of electing to purchase the Protection Plus feature
in an NQ, IRA or Rollover TSA contract.
If the annuitant is 70 or younger when we issue your contract (or if the
successor owner/annuitant is 70 or younger when he or she becomes the successor
owner/annuitant), the death benefit will be:
the greater of:
o the account value or
o any applicable death benefit
30 Contract features and benefits
Increased by:
o such death benefit less total net contributions multiplied by 40%
For purposes of calculating your Protection Plus benefit, the following
applies: (i) "Net contributions" are the total contributions made (or, if
applicable, the total amount that would otherwise have been paid as a death
benefit had the successor owner/annuitant election not been made plus any
subsequent contributions) reduced on a pro rata basis to reflect withdrawals
(including surrender charges and loans). Credit amounts are not included in
"net contributions." Reduction on a pro rata basis means that we calculate the
percentage of the current account value that is being withdrawn and we reduce
net contributions by that percentage. For example, if the account value is
$30,000 and you withdraw $12,000, you have withdrawn 40% of your account value.
If contributions aggregated $40,000 before the withdrawal, it would be reduced
by $16,000 ($40,000 x .40) and net contributions after the withdrawal would be
$24,000 ($40,000-$16,000); (ii) "Death benefit" is equal to the greater of the
account value as of the date we receive satisfactory proof of death or any
applicable guaranteed minimum death benefit as of the date of death.
If the annuitant is age 71 through 79 when we issue your contract (or if the
successor owner/annuitant is between the ages of 71 and 79 when he or she
becomes the successor owner/annuitant and Protection Plus had been elected at
issue), the death benefit will be:
the greater of:
o the account value or
o any applicable death benefit
Increased by:
o such death benefit (as described above) less total net contributions,
multiplied by 25%
The value of the Protection Plus death benefit is frozen on the first contract
date anniversary after the annuitant turns age 80, except that the benefit will
be reduced for withdrawals on a pro rata basis. Protection Plus must be elected
when the contract is first issued; neither the owner nor the successor
owner/annuitant can add it subsequently. Ask your financial professional if
this feature is available in your state.
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, with a signed letter of instruction electing this right, to our
processing office within 10 days after you receive it. If state law requires,
this "free look" period may be longer.
Generally, your refund will equal your account value under the contract on the
day we receive notification to cancel the contract and will reflect (i) any
investment gain or loss in the variable investment options (less the daily
charges we deduct), (ii) any guaranteed interest in the guaranteed interest
option, and (iii) any positive or negative market value adjustments in the
fixed maturity options through the date we receive your contract. Some states
require that we refund the full amount of your contribution (not reflecting
(i), (ii) or (iii) above). For any IRA contracts returned to us within seven
days after you receive it, we are required to refund the full amount of your
contribution. Please note that you will forfeit the credit by exercising this
right of cancellation.
We may require that you wait six months before you may 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 and in the SAI for
possible consequences of cancelling your contract.
In addition to the cancellation right described above, if you fully convert an
existing traditional IRA contract to a Roth Conversion IRA contract, you may
cancel your Roth Conversion IRA contract and return to a Rollover IRA contract.
Our processing office or your financial professional can provide you with the
cancellation instructions.
Contract features and benefits 31
2. Determining your contract's value
- --------------------------------------------------------------------------------
YOUR ACCOUNT VALUE AND CASH VALUE
Your "account value" is the total value of the values you have in: (i) the
variable investment options; (ii) the guaranteed interest account; (iii) market
adjusted amounts in the fixed maturity options; and (iv) the loan reserve
account (applies for Rollover TSA contracts only).
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) the
total amount or a pro rata portion of the annual administrative charge, as well
as optional benefit charges; (ii) any applicable withdrawal charge; and (iii)
the amount of any outstanding loan plus accrued interest (applicable to
Rollover TSA contracts only). Please see "Surrendering 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.
The unit value for each variable investment option depends on the investment
performance of that option, less daily charges for:
(i) mortality and expense risks;
(ii) administrative, and
(iii) distribution charges.
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 plus the credit;
(ii) decreased to reflect a withdrawal (plus applicable withdrawal charges);
(iii) increased to reflect transfer into, or decreased to reflect transfer
out of a variable investment option; or
(iv) increased or decreased to reflect a transfer of your loan amount from
or to the loan reserve account under a Rollover TSA contract.
In addition, when we deduct the enhanced death benefit, Living Benefit and/or
Protection Plus benefit charges, the number of units credited to your contract
will be reduced. Your units are also reduced when we deduct the annual
administrative charge. A description of how unit values are calculated is found
in the SAI.
YOUR CONTRACT'S VALUE IN THE GUARANTEED
INTEREST ACCOUNT
Your value in the guaranteed interest account at any time will equal: your
contributions and transfers to that option, plus interest, minus withdrawals
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, provided
there have been no withdrawals or transfers.
TERMINATION OF YOUR CONTRACT
Your contract will terminate without value if your account value is
insufficient to pay any applicable charges when due. Your account value could
become insufficient due to withdrawals and/or poor market performance. Upon
such termination, you will lose any applicable guaranteed benefits.
32 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 variable investment options,
subject to the following:
o You may not transfer to a fixed maturity option that has a rate to maturity
of 3% or less.
o If the annuitant is age 76-80, you must limit your transfers to fixed
maturity options with maturities of seven years or less. If the annuitant
is age 81 or older, you must limit your transfers to fixed maturity
options of five years or less. As of February 13, 2004, maturities of less
than eight years were not available. Also, the maturity dates may be no
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 During the first contract year, transfers into the guaranteed interest option
are not permitted.
o After the first contract year, a transfer into the guaranteed interest option
will not be permitted if such transfer would result in more than 25% of
the annuity account value being allocated to the guaranteed interest
option, based on the annuity account value as of the previous business
day.
In addition, we reserve the right to restrict transfers among variable
investment options as described in your contract, including limitations on the
number, frequency or dollar amount of transfers.
The maximum amount that may be transferred from the guaranteed interest option
to any investment option (including amounts transferred pursuant to the
fixed-dollar option and interest sweep option dollar cost averaging programs
described under "Allocating your contributions" in "Contract features and
benefits" earlier in this Prospectus) in any contract year is the greatest of:
(a) 25% of the amount you have in the guaranteed interest option on the last
day of the prior contract year; or,
(b) the total of all amounts transferred at your request from the guaranteed
interest option to any of the Investment options in the prior contract
year; or,
(c) 25% of amounts transferred or allocated to the guaranteed interest option
during the current contract year.
From time to time, we may remove the restrictions regarding transferring
amounts out of the guaranteed interest option. If we do so, we will tell you.
We will also tell you at least 45 days in advance of the day we intend to
reimpose the transfer restrictions. When we reimpose the transfer restrictions,
if any dollar cost averaging transfer out of the guaranteed interest option
causes a violation of the 25% outbound restriction, that dollar cost averaging
program will be terminated for the current contract year. A new dollar cost
averaging program can be started in the next or subsequent contract years.
You may request a transfer in writing, by telephone using TOPS or through
EQAccess. You must send in all written transfer requests directly to our
processing office. Transfer requests should specify:
(1) the contract number,
(2) the dollar amounts or percentages of your current account value 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 Accumulator(R) Plus(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.
Frequent transfers, including market timing and other program trading
strategies, may be disruptive to the underlying portfolios in which the
variable investment options invest. Disruptive transfer activity may hurt the
long term performance of a portfolio by, for example, requiring it to maintain
larger amounts of cash or to liquidate portfolio holdings at a disadvantageous
time or price. We currently use the procedures described below to discourage
disruptive transfer activity in AXA Premier VIP Trust and EQ Advisors Trust.
You should understand, however, that these procedures are subject to the
following limitations: (1) they do not eliminate the possibility that
disruptive transfer activity, including market timing, will occur or that
portfolio performance will be affected by such activity; (2) the design of
these procedures involves inherently subjective judgments, which we and AXA
Premier VIP Trust and EQ Advisors Trust seek to make in a fair and reasonable
manner consistent with interests of all policy and contract owners. Certain
frequent transfer activities attempt to exploit inefficiencies in how portfolio
securities are valued. Please see the prospectuses for the underlying
portfolios for more information on how portfolio shares are priced.
If we determine that your transfer patterns are disruptive, 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. 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 reduce disruptive activity,
Transferring your money among investment options 33
we monitor the frequency of transfers, including the size of transfers in
relation to portfolio assets, in each underlying portfolio. When a potentially
disruptive transfer into or out of a portfolio occurs on a day when the
portfolio's aggregate deposits or aggregate redemptions exceed our monitoring
threshold, we may take the actions described above to restrict availability of
voice, fax and automated transaction services. We currently apply such action
for the remaining life of each affected contract. We also currently provide a
letter to owners who have engaged in disruptive transfer activity of our
intention to restrict access to communication 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 potentially disruptive transfer
activity and our monitoring procedures and thresholds, as well as change our
procedures to restrict this activity.
Our ability to monitor potentially disruptive transfer activity is limited in
certain circumstances. Group annuity contracts may be owned by retirement plans
on whose behalf we provide transfer instructions on an omnibus (aggregate)
basis, which may mask the disruptive transfer activity of individual plan
participants, and/or interfere with our ability to restrict communication
services. Also, underlying portfolios that are not in AXA Premier VIP Trust or
EQ Advisors Trust may be available for investment through companies that may
have policies and procedures regarding disruptive transfer activity that are
different from ours. Please see the prospectuses for those underlying
portfolios for more information.
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 on a contract year basis)
Rebalancing will occur on the same day of the month as the contract date. If a
contract is established after the 28th, rebalancing will occur on the first
business day of the month following the contract issue date.
While your rebalancing program is in effect, we will transfer amounts among the
variable investment options 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 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. 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; your rebalancing allocations will not be changed, and
the rebalancing program will remain in effect unless you request that it be
canceled in writing. There is no charge for the rebalancing feature.
You may not elect the rebalancing program if you are participating in any
dollar cost averaging program. Rebalancing is not available for amounts you
have allocated to the guaranteed interest option or the fixed maturity options.
34 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. If you withdraw more than 90% of a
contract's current cash value, we will treat it as a request to surrender the
contract for its cash value. See "Surrendering your contract to receive its
cash value" below. For the tax consequences of withdrawals, see "Tax
information" later in this Prospectus and in the SAI.
Please see "Termination of your contract" in "Determining your contract value"
earlier in this Prospectus and "How withdrawals affect your guaranteed minimum
income benefit and guaranteed minimum death benefit" below for more information
on how withdrawals affect your guaranteed benefits and could potentially cause
your contract to terminate.
- --------------------------------------------------------------------------------
Method of withdrawal
- --------------------------------------------------------------------------------
Lifetime
required
Substantially minimum
Contract Lump sum Systematic equal distribution
- --------------------------------------------------------------------------------
NQ Yes Yes No No
- --------------------------------------------------------------------------------
Rollover IRA Yes Yes Yes Yes
- --------------------------------------------------------------------------------
Roth Con-
version IRA Yes Yes Yes No
- --------------------------------------------------------------------------------
Rollover
TSA* Yes Yes No Yes
- --------------------------------------------------------------------------------
QP Yes No No Yes
- --------------------------------------------------------------------------------
* For some Rollover TSA contracts, your ability to take withdrawals, loans or
surrender your contract may be limited. You must provide withdrawal
restriction information when you apply for a contract. See "Tax Sheltered
Annuity Contracts (TSAs)" in "Tax information" later in this Prospectus and
in the SAI.
LUMP SUM WITHDRAWALS
(All contracts)
You may take lump sum withdrawals from your account value at any time.
(Rollover TSA contracts may have restrictions). The minimum amount you may
withdraw is $300.
Lump sum withdrawals will be subject to a withdrawal charge if they exceed the
15% free withdrawal amount (see "15% free withdrawal amount" in "Charges and
expenses" later in this Prospectus). Under Rollover TSA contracts, if a loan is
outstanding, you may only take lump sum withdrawals as long as the cash value
remaining after any withdrawal equals at least 10% of the outstanding loan plus
accrued interest.
SYSTEMATIC WITHDRAWALS
(NQ, Rollover TSA, Rollover IRA and Roth Conversion IRA contracts only)
You may take systematic withdrawals of a particular dollar amount or a
particular percentage of your account value. (Rollover TSA contracts may have
restrictions).
You may take systematic withdrawals on a monthly, quarterly or annual basis as
long as the withdrawals do not exceed the following percentages of your account
value: 1.2% monthly, 3.6% quarterly and 15.0% annually. The minimum amount you
may take in each systematic withdrawal is $250. If the amount withdrawn would
be less than $250 on the date a withdrawal is to be taken, we will not make a
payment and we will terminate your systematic withdrawal election.
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, we
will make the withdrawals on the same calendar day of the month as the contract
date. You must wait at least 28 days after your contract is issued before your
systematic withdrawals can begin.
You may elect to take systematic withdrawals at any time. If you own an IRA
contract, you may elect this withdrawal method only if you are between ages
59-1/2 and 70-1/2.
You may change the payment frequency, or the amount or percentage of your
systematic withdrawals, once each contract year. However, you may not change
the amount or percentage in any contract year in which you have already taken a
lump sum withdrawal. You can cancel the systematic withdrawal option at any
time.
Systematic withdrawals are not subject to a withdrawal charge, except to the
extent that, when added to a lump sum withdrawal previously taken in the same
contract year, the systematic withdrawal exceeds the 15% free withdrawal
amount.
SUBSTANTIALLY EQUAL WITHDRAWALS
(Rollover IRA and Roth Conversion IRA contracts only)
We offer our "substantially equal withdrawals option" to allow you to receive
distributions from your account value without triggering the 10% additional
federal income tax penalty, which normally applies to distributions made before
age 59-1/2. See "Tax information" later in this Prospectus and in the SAI. We
use one of the IRS-approved methods for doing this; this is not the exclusive
method of meeting this exception. After consultation with your tax adviser, you
may decide to use another method which would require you to compute amounts
yourself and request lump sum withdrawals. In such a case, a withdrawal charge
may apply. Once you begin to take substantially equal withdrawals, you should
not stop them or change the pattern of your withdrawals until after the later
of age 59-1/2 or five full years after the first withdrawal. If you stop or
change the withdrawals or take a lump sum withdrawal, you may be liable for the
10% federal tax penalty that would have otherwise been due on prior withdrawals
made under this option and for any interest on the delayed payment of the
penalty.
In accordance with IRS guidance, an individual who has elected to receive
substantially equal withdrawals may change, without penalty, from one of the
IRS-approved methods of calculating fixed payments to another IRS-approved
method (similar to the required minimum distribution rules) of calculating
payments which vary each year.
Accessing your money 35
You may elect to take substantially equal withdrawals at any time before age
59-1/2. 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. You may not elect to
receive the first payment in the same contract year in which you took a lump
sum withdrawal. We will calculate the amount of your substantially equal
withdrawals using the IRS-approved method we offer. The payments will be made
monthly, quarterly or annually as you select. These payments will continue
until we receive written notice from you to cancel this option or you take a
lump sum withdrawal. You may elect to start receiving substantially equal
withdrawals again, but the payments may not restart in the same contract year
in which you took a lump sum withdrawal. We will calculate the new withdrawal
amount.
Substantially equal withdrawals are not subject to a withdrawal charge.
LIFETIME REQUIRED MINIMUM DISTRIBUTION WITHDRAWALS
(Rollover IRA and Rollover TSA and QP contracts only -- See "Tax information"
later in this Prospectus and in the SAI)
We offer the minimum distribution withdrawal option to help you meet 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 or in any later year. The
minimum amount we will pay out is $250. Currently, minimum distribution
withdrawal payments will be made annually. See "Required minimum distributions"
in "Tax information" later in this Prospectus and in the SAI for your specific
type of retirement arrangement.
Currently, we do not impose a withdrawal charge on minimum distribution
withdrawals if you are enrolled in our "automatic required minimum distribution
(RMD) service" except if, when added to a lump sum withdrawal previously taken
in the same contract year, the minimum distribution withdrawal exceeds the 15%
free withdrawal amount.
Under Rollover TSA contracts, you may not elect minimum distribution
withdrawals if a loan is outstanding.
- --------------------------------------------------------------------------------
For Rollover IRA and Rollover TSA contracts, 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).
- --------------------------------------------------------------------------------
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 and the guaranteed
interest account. If there is insufficient value or no value in the variable
investment options and the guaranteed interest account, 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) first. A market value adjustment may apply to withdrawals from the
fixed maturity options.
HOW WITHDRAWALS AFFECT YOUR GUARANTEED MINIMUM INCOME BENEFIT AND GUARANTEED
MINIMUM DEATH BENEFIT
Withdrawals will reduce your guaranteed benefits on either a dollar-for-dollar
basis or on a pro rata basis as explained below:
INCOME BENEFIT AND DEATH BENEFIT
Your applicable benefit base will be reduced on a dollar-for-dollar basis as
long as the sum of your withdrawals in a contract year is 6% or less of the
applicable benefit base on the most recent contract date anniversary. Any
portion of a withdrawal that causes the sum of your withdrawals in a contract
year to exceed 6% of the applicable benefit base on the most recent contract
date anniversary and any subsequent withdrawals in that same contract year will
reduce your applicable benefit base on a pro rata basis.
The timing of your withdrawals and whether they exceed the 6% threshold
described above can have a significant impact on your guaranteed minimum income
benefit or guaranteed minimum death benefit.
Reduction on a dollar-for-dollar basis means that your current benefit will be
reduced by the dollar amount of the withdrawal. 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 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 guaranteed minimum death benefit
was $40,000 before the withdrawal, it would be reduced by $16,000 ($40,000 x
..40) and your new guaranteed minimum death benefit after the withdrawal would
be $24,000 ($40,000 - $16,000.) This pro rata example assumes that the annual
6% threshold described above has already been exceeded.
LOANS UNDER ROLLOVER TSA CONTRACTS
You may take loans from a Rollover TSA unless restricted by the employer who
provided the Rollover TSA funds. If you cannot take a loan, or cannot take a
loan without approval from the employer who provided the funds, we will have
this information in our records based on what you and the employer who provided
the funds told us when you purchased your contract. The employer must also tell
us whether special employer plan rules of the Employee Retirement Income
Security Act of 1974 ("ERISA") apply. We will not permit you to take a loan
while you are enrolled in our "automatic required minimum distribution (RMD)
service."
You should read the terms and conditions on our loan request form carefully
before taking out a loan. Under Rollover TSA contracts subjected to ERISA, you
may only take a loan with the written consent of your spouse. Your contract
contains further details of the loan provision. Also, see "Tax information"
later in this Prospectus and in the SAI, for general rules applicable to loans.
We will permit you to have only one loan outstanding at a time. The minimum
loan amount is $1,000. The maximum amount is $50,000 or, if less, 50% of your
account value, subject to any limits under the federal income tax rules. The
term of the loan is five years. However, if you use the loan to acquire your
primary residence, the term is 10 years. The term may not extend beyond the
earliest of:
(1) the date annuity payments begin,
(2) the date the contract terminates, and
36 Accessing your money
(3) the date a death benefit is paid (the outstanding loan will be deducted
from the death benefit amounts).
A loan request under your Rollover TSA contract will be processed on the first
business day of the month following the date on which the properly completed
loan request form is received. Interest will accrue daily on your outstanding
loan at a rate we set. The loan interest rate will be equal to the Moody's
Corporate Bond Yield Averages for Baa bonds for the calendar month ending two
months before the first day of the calendar quarter in which the rate is
determined.
LOAN RESERVE ACCOUNT
On the date your loan is processed, we will transfer the amount of your loan to
the loan reserve account. Unless you specify otherwise, we will subtract your
loan on a pro rata basis from your value in the variable investment options and
the guaranteed interest option. If these amounts are insufficient, any
additional amount of the loan will be subtracted from the fixed maturity
options in the order of the earliest maturity date(s) first. A market value
adjustment may apply.
We will credit interest to the amount in the loan reserve account at a rate of
2% lower than the loan interest rate that applies for the time your loan is
outstanding. On each contract date anniversary after the date the loan is
processed, we will transfer the amount of interest earned in the loan reserve
account to the variable investment options on a pro rata basis. When you make a
loan repayment, unless you specify otherwise, we will transfer the dollar
amount of the loan repaid from the loan reserve account to the investment
options according to the allocation percentages we have on our records. Loan
repayments are not considered contributions and therefore are not eligible for
additional credits.
SURRENDERING 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. (Rollover
TSA contracts may have restrictions). 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.
For the tax consequences of surrenders, see "Tax information" later in this
Prospectus and in the SAI.
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, payment of a death benefit, payment of any amount you
withdraw (less any withdrawal charge) and, upon surrender, 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 value in the guaranteed interest
account and 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 10 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
Equitable Accumulator(R) Plus(SM) offers you several choices of annuity payout
options. Some enable you to receive fixed annuity payments which can be either
level or increasing, 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. In addition, if you are exercising your guaranteed minimum
income benefit under the Living Benefit, your choice of payout options are
those that are available under the Living Benefit (see "Our Living Benefit
option" in "Contract features and benefits" earlier in this Prospectus).
- ----------------------------------------------------------------------------
Fixed annuity payout options Life annuity
Life annuity with period
certain
Life annuity with refund
certain
Period certain annuity
- ----------------------------------------------------------------------------
Variable Immediate Annuity Life annuity (not available
payout options in New York)
Life annuity with period
certain
- ----------------------------------------------------------------------------
Income Manager payout Life annuity with period
options (available for annuitants certain
age 83 or less at contract issue) Period certain annuity
- ----------------------------------------------------------------------------
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. 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 differ-
Accessing your money 37
ent payout option. In this case, the period certain will be based on the
annuitant's age and will not exceed 10 years.
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 guaranteed 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 you with details.
FIXED ANNUITY PAYOUT OPTIONS
With fixed annuities, we guarantee fixed annuity payments will be based either
on the tables of guaranteed annuity purchase factors in your contract or on our
then current annuity purchase factors, 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 Immediate Annuities may be funded through your choice of available
variable investment options investing in portfolios of the EQ Advisors Trust
and AXA Premier VIP Trust. The contract also offers a fixed income annuity
payout option that can be elected in combination with the variable annuity
payout option. The amount of each variable income 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.
INCOME MANAGER PAYOUT OPTIONS
The Income Manager payout annuity contracts differ from the other payout
annuity contracts. The other payout annuity contracts may provide higher or
lower income levels, but do not have all the features of the Income Manager
payout annuity contract. You may request an illustration of the Income Manager
payout annuity contract from your financial professional. Income Manager payout
options are described in a separate prospectus that is available from your
financial professional. Before you select an Income Manager payout option, you
should read the prospectus which contains important information that you should
know.
Both NQ and IRA Income Manager payout options provide guaranteed level
payments. The Income Manager (life annuity with period certain) also provides
guaranteed increasing payments (NQ contracts only). You may not elect an Income
Manager payout option without life contingencies unless withdrawal charges are
no longer in effect under your Equitable Accumulator(R) Plus(SM).
For QP and Rollover TSA contracts, if you want to elect an Income Manager
payout option, we will first roll over amounts in such contract to a Rollover
IRA contract with the plan participant as owner.
You may choose to apply your account value of your Equitable Accumulator(R)
Plus(SM) contract to an Income Manager payout annuity. In this case, we will
consider any amounts applied as a withdrawal from your Equitable Accumulator(R)
Plus(SM). For the tax consequences of withdrawals, see "Tax information" later
in this Prospectus and in the SAI.
Depending upon your circumstances, an Income Manager contract may be purchased
on a tax-free basis. Please consult you tax adviser. The Income Manager payout
options are not available in all states.
If you purchase an Income Manager contract in connection with the exercise of
the Living Benefit option, different payout options may apply as well as other
various differences. See "Our Living Benefit Option" in "Contract features and
benefits" earlier in this Prospectus as well as the Income Manager prospectus.
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.
For the fixed annuity payout options and Variable Immediate 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 under your
Equitable Accumulator(R) Plus(SM) is imposed if you select a period certain. If
the period certain is more than 5 years, then the withdrawal charge deducted
will not exceed 5% of the account value.
For the Income Manager payout life contingent options, no withdrawal charge is
imposed under the Equitable Accumulator(R) Plus(SM). If the withdrawal charge
that otherwise would have been applied to your account value under your
Equitable Accumulator(R) Plus(SM) is greater than 2% of the contributions that
remain in your contract at the time you purchase your payout option, the
withdrawal charges under the Income Manager will apply. The year in which your
account value is applied to the payout option will be "contract year 1."
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. The contract owner and annuitant
must meet the issue age and payment requirements.
38 Accessing your money
You can choose the date annuity payments begin but it may not be earlier than
five years from the Accumulator(R) Plus(SM) contract date. Except with respect
to Income Manager annuity payout options, where payments are made on the 15th
day of each month, 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 annuity maturity
date described below.
If you elect to start receiving annuity payments within three years of making
an additional contribution, we will recover the amount of any credit that
applies to that contribution.
The amount of the annuity payments will depend on the amount applied to
purchase the annuity and the applicable annuity purchase factors, discussed
earlier.
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.
ANNUITY MATURITY DATE
Your contract has a maturity date by which you must either take a lump sum
withdrawal or select an annuity payout option. The maturity date is generally
the contract date anniversary that follows the annuitant's 95th birthday. For
contracts issued in New York, the maturity date is the contract date that
follows the annuitant's 90th birthday.
For contracts issued in Pennsylvania, the maturity date is related to the
contract issue date, as follows:
- -----------------------------------
Maximum
Issue age annuitization age
- -----------------------------------
0-75 85
76 86
77 87
78-80 88
- -----------------------------------
Before the last day 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: (i) transfers (if permitted in
the future) among the variable investment options if a Variable Immediate
Annuity payout option is selected; and (ii) withdrawals or contract surrender
(subject to a market value adjustment) if an Income Manager annuity payout
option is chosen.
Accessing your money 39
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 An administrative charge
o A distribution charge
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 each contract date anniversary -- an annual administrative charge, if
applicable.
o At the time you make certain withdrawals or surrender your contract -- a
withdrawal charge.
o On each contract date anniversary -- a charge if you elect a death benefit
(other than the Standard death benefit).
o On each contract date anniversary -- a charge for the Living Benefit, if you
elect this optional 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.
o On each contract date anniversary -- a charge for Protection Plus, if you
elect this optional benefit.
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.
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 Standard death
benefit. The daily charge is equivalent to an annual rate of 0.90% 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 income 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. Lastly,
we assume a mortality risk to the extent that at the time of death, the
guaranteed minimum 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. A portion of this charge also
compensates us for the contract credit. For a discussion of the credit, see
"Credits" in "Contracts features and benefits" earlier in this Prospectus. We
expect to make a profit from this charge.
ADMINISTRATIVE CHARGE
We deduct a daily charge from the net assets in each variable investment option
to compensate us for administrative expenses under the contracts. The daily
charge is equivalent to an annual rate of 0.25% of the net assets in each
variable investment option.
DISTRIBUTION CHARGE
We deduct a daily charge from the net assets in each variable investment option
to compensate us for a portion of our sales expenses under the contracts. The
daily charge is equivalent to an annual rate of 0.25% of the net assets in each
variable investment option.
ANNUAL ADMINISTRATIVE CHARGE
We deduct an administrative charge from your account value on each contract
date anniversary. We deduct the charge if your account value on the last
business day of the contract year is less than $50,000. If your account value
on such date is $50,000 or more, we do not deduct the charge. During the first
two contract years, the charge is equal to $30 or, if less, 2% of your account
value. The charge is $30 for contract years three and later.
We will deduct this charge from your value in the variable investment options
and the guaranteed interest option (if permitted in your state) on a pro rata
basis. If those amounts are insufficient, we will deduct all or a portion of
the charge from the fixed maturity options in order of the earliest maturity
date(s) first. A market value adjustment may apply. If you surrender your
contract during the contract year, we will deduct a pro rata portion of the
charge.
If your account value is insufficient to pay this charge, your contract will
terminate without value and you will lose any applicable guaranteed benefits.
Please see "Termination of your contract" in "Determining your contract value"
earlier in this Prospectus.
WITHDRAWAL CHARGE
A withdrawal charge applies in two circumstances: (1) if you make one or more
withdrawals during a contract year that, in total, exceed the 15% free
withdrawal amount, described below, or (2) if you surrender your contract to
receive its cash value or apply your cash value to a non life contingent
annuity payout option. A portion of this charge also compensates us for the
contract credit. For a discussion of the credit, see "Credits" in "Contracts
features and benefits" earlier in this Prospectus. We expect to make a profit
from this charge.
40 Charges and expenses
The withdrawal charge equals a percentage of the contributions withdrawn. We do
not consider credits to be contributions. Therefore, there is no withdrawal
charge associated with a credit.
The percentage of the withdrawal charge that applies to each contribution
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 9+
- --------------------------------------------------------------------------------
Percentage of 8% 8% 7% 7% 6% 5% 4% 3% 0%
contribution
- --------------------------------------------------------------------------------
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 withdrawals 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 your contract as withdrawn first. See "Tax
information" later in this Prospectus and in the SAI.
In order to give you the exact dollar amount of the withdrawal you request, we
deduct the amount of the withdrawal and the withdrawal charge from your account
value. Any amount deducted to pay withdrawal charges is also subject to the
same withdrawal charge percentage. We deduct the charge in proportion to the
amount of the withdrawal subtracted from each variable investment option. The
withdrawal charge helps cover our sales expenses.
The withdrawal charge does not apply in the circumstances described below.
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 beginning of each contract
year, or in the case of the first contract year, your initial contribution,
minus any other withdrawals made during the contract year. The 15% free
withdrawal amount does not apply if you surrender your contract except where
required by law.
DISABILITY, TERMINAL ILLNESS, OR CONFINEMENT TO NURSING HOME. The withdrawal
charge 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, or U.S. Virgin Islands) 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, if the conditions as described in (i), (ii)
or (iii) above existed at the time a contribution was remitted or if the
condition began within 12 months of the 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.
GUARANTEED MINIMUM DEATH BENEFIT CHARGE
Annual ratchet to age 85. If you elect the Annual ratchet to age 85 enhanced
death benefit, we deduct a charge annually from your account value on each
contract date anniversary for which it is in effect. The charge is equal to
0.30% of the Annual ratchet to age 85 benefit base.
6% Roll up to age 85. If you elect the 6% Roll up to age 85 enhanced death
benefit, we deduct a charge annually from your account value on each contract
date anniversary for which it is in effect. The charge is equal to 0.45% of the
6% Roll up to age 85 benefit base.
Greater of 6% Roll up to age 85 or Annual ratchet to age 85. If you elect this
enhanced death benefit, we deduct a charge annually from your account value on
each contract date anniversary for which it is in effect. The charge is equal
to 0.60% of the greater of the 6% Roll up to age 85 or the Annual ratchet to
age 85 benefit base.
We will deduct this charge from your value in the variable investment options
and the guaranteed interest option on a pro-rata basis. If those amount are
insufficient, we will deduct all or a portion of the charge from the fixed
maturity options in order of the earliest maturity date(s) first. A market
value adjustment may apply.
If your account value is insufficient to pay this charge, your contract will
terminate without value and you will lose any applicable guaranteed benefits.
Please see "Termination of your contract" in "Determining your contract value"
earlier in this Prospectus.
There is no additional charge for the Standard death benefit.
LIVING BENEFIT CHARGE
If you elect the Living Benefit, we deduct a charge annually from your account
value on each contract date anniversary until such time as you exercise the
guaranteed minimum income benefit, elect another annu-
Charges and expenses 41
ity payout option or the contract date anniversary after the annuitant reaches
age 85, whichever occurs first. The charge is equal to 0.60% of the applicable
benefit base in effect on the contract date anniversary.
We will deduct this charge from your value in the variable investment options
and the guaranteed interest option on a pro rata basis. If those amounts are
insufficient, we will deduct all or a portion of the charge from the fixed
maturity options in order of the earliest maturity date(s) first. A market
value adjustment may apply.
If your account value is insufficient to pay this charge, your contract will
terminate without value and you will lose any applicable guaranteed benefits.
Please see "Termination of your contract" in "Determining your contract value"
earlier in this Prospectus.
PROTECTION PLUS
If you elect Protection Plus, we deduct a charge annually from your account
value on each contract date anniversary for which it is in effect. The charge
is equal to 0.35% of the account value on each contract date anniversary. We
will deduct this charge from your value in the variable investment options and
the guaranteed interest option on a pro rata basis. If those amounts are
insufficient, we will deduct all or a portion of the charge from the fixed
maturity options in the order of the earliest maturity date(s) first. A market
value adjustment may apply.
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 jurisdiction and ranges from 0% to 3.5%.
VARIABLE IMMEDIATE ANNUITY PAYOUT OPTION ADMINISTRATIVE FEE
We deduct a fee of $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 Management fees ranging from 0.10% to 1.50%.
o 12b-1 fees of either 0.25% or 0.35%.
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 prospectuses for the Trusts.
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 guaranteed minimum death
benefit or offer variable investment options that invest in shares of the
Trusts that are not subject to the 12b-1 fee. If permitted under the terms of
our exemptive order regarding Accumulator Plus(SM) bonus feature, we may also
change the crediting percentage that applies to contributions. 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 Rollover IRA and Roth Conversion 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 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.
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 would 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 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. You may be
limited as to the beneficiary you can designate in a Rollover TSA contract. In
a QP contract, the beneficiary must be the trustee. Where an NQ contract is
owned by a minor pursuant to the Uniform Gift to Minors Act or the Uniform
Transfers to Minors Act, the beneficiary must be the estate of the annuitant.
Where an IRA contract is owned in a custodial individual retirement account,
the custodian must be the beneficiary so that the custodian can reinvest or
distribute the death benefit as the beneficiary of the account desires.
The death benefit is equal to your account value (without adjustment for any
otherwise applicable negative market value adjustment) or, if greater, the
applicable guaranteed minimum death benefit. We determine the amount of the
death benefit (other than the applicable guaranteed minimum death benefit) and
any amount applicable under the Protection Plus feature, 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.
The amount of the applicable guaranteed minimum death benefit will be such
guaranteed minimum death benefit as of the date of the annuitant's death,
adjusted for any subsequent withdrawals. The death benefit will be less a
deduction for any outstanding loan plus accrued interest on the date that the
death benefit is made (applies to Rollover TSA only).
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, a
surviving spouse of the deceased owner/annuitant can choose to be treated as
the successor owner/annuitant and continue the contract. Only a spouse who is
the sole primary beneficiary can be a successor owner/annuitant. The successor
owner/annuitant feature is only available under NQ and individually-owned IRA
contracts.
For NQ and 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.
When the owner is not the annuitant under an NQ contract and the owner dies
before annuity payments begin, the beneficiary named to receive the death
benefit upon the annuitant's death will become the successor owner. If you do
not want this beneficiary 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. The surviving
owner automatically takes the place of any other beneficiary designation.
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 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. An eligible successor owner,
including a surviving joint owner after the first owner dies, may elect the
beneficiary continuation option for NQ contracts discussed later under
"Beneficiary continuation option" below.
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.
SUCCESSOR OWNER AND ANNUITANT
If you are both the contract owner and the annuitant, and your spouse is the
sole primary beneficiary or the joint owner, then your spouse may elect to
receive the death benefit or continue the contract as successor
owner/annuitant.
Payment of death benefit 43
If your surviving spouse decides to continue the contract, then as of the date
we receive satisfactory proof of your death, any required instructions and
information, and forms necessary to effect the successor owner/annuitant
feature, we will increase the account value to equal your elected guaranteed
minimum death benefit as of the date of your death if such death benefit is
greater than your account value, plus any amount applicable under the
Protection Plus feature, and adjusted for any subsequent withdrawals. 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 considered to be withdrawn
only after all other amounts have been withdrawn. In determining whether your
applicable guaranteed minimum death benefit option will continue to grow, we
will use your surviving spouse's age (as of the date we receive satisfactory
proof of your death, any required instructions and the information and forms
necessary to effect the successor owner/annuitant feature).
Where an NQ contract is owned by a Living Trust, as defined in the contract,
and at the time of the annuitant's death the annuitant's spouse is the sole
beneficiary of the Living Trust, the Trustee, as owner of the contract, may
request that the spouse be substituted as annuitant as of the date of the
annuitant's death. No further change of annuitant will be permitted.
Where an IRA contract is owned in a custodial individual retirement account,
and your spouse is the sole beneficiary of the account, the custodian may
request that the spouse be substituted as annuitant after your death.
BENEFICIARY CONTINUATION OPTION
This feature permits a designated individual, on the contract owner's death, to
maintain a contract in the deceased contract owner's 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, Roth IRA and NQ contracts, subject to state availability. Please speak
with your financial professional for further information.
BENEFICIARY CONTINUATION OPTION FOR TRADITIONAL IRA AND ROTH IRA CONTRACTS
ONLY. The beneficiary continuation option must be elected by September 30th of
the year following the calendar year of your death and before any other
inconsistent election is made. Beneficiaries who do not make a timely election
will not be eligible for this 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 applicable death
benefit if such death benefit is greater than such account value, plus any
amount applicable under the Protection Plus feature, and adjusted for any
subsequent withdrawals. Where an IRA contract is owned in a custodial
individual retirement account, the custodian may reinvest the death benefit in
an individual retirement annuity contract, using the account beneficiary as the
annuitant. Please speak with your financial professional for further
information.
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. For sole
spousal beneficiaries, payments may begin by December 31st of the calendar year
in which you would have reached age 70-1/2, if such time is later. For
traditional IRA contracts only, if you die before your Required Beginning Date
for Required Minimum Distributions, as discussed in the Statement of Additional
Information, the beneficiary may choose the "5-year rule" option instead of
annual payments over life expectancy. The 5-year rule is always available to
beneficiaries under Roth IRA contracts. If the beneficiary chooses this option,
the beneficiary may take withdrawals as desired, but the entire account value
must be fully withdrawn by December 31st of the calendar year which contains
the fifth anniversary of your death.
Under the beneficiary continuation option for IRA and Roth IRA contracts:
o The contract continues in your name for the benefit of your beneficiary.
o This feature is only available if the beneficiary is an individual. Certain
trusts with only individual beneficiaries will be treated as individuals
for this purpose.
o If there is more than one beneficiary, each beneficiary's share will be
separately accounted for. It will be distributed over the beneficiary's
own life expectancy, if payments over life expectancy are chosen.
o The minimum amount that is required in order to elect the beneficiary
continuation option is $5,000 for each beneficiary.
o The beneficiary may make transfers among the investment options but no
additional contributions will be permitted.
o If you had elected the guaranteed minimum income benefit or an optional
enhanced death benefit under the contract, they will no longer be in
effect and charges for such benefits will stop. Also, any minimum death
benefit feature 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, if any, will apply.
o 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 required 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.
BENEFICIARY CONTINUATION OPTION FOR NQ CONTRACT ONLY. This feature, also known
as the Inherited annuity, may only be elected when the NQ contract owner dies
before the annuity commencement date, whether or not the owner and the
annuitant are the same person. If the owner
44 Payment of death benefit
and annuitant are different and the owner dies before the annuitant, for
purposes of this discussion, "beneficiary" refers to the successor owner. For a
discussion of successor owner, see "When an NQ contract owner dies before the
annuitant" earlier in this section. This feature must be elected within 9
months following the date of your death and before any inconsistent election is
made. Beneficiaries who do not make a timely election will not be eligible for
this option.
Generally, payments will be made once a year to the beneficiary over the
beneficiary's life expectancy, determined on a term certain basis and in the
year payments start. These payments must begin no later than one year after the
date of your death and are referred to as "scheduled payments." The beneficiary
may choose the "5-year rule" instead of scheduled payments over life
expectancy. If the beneficiary chooses the 5-year rule, there will be no
scheduled payments. Under the 5-year rule, the beneficiary may take withdrawals
as desired, but the entire account value must be fully withdrawn by the fifth
anniversary of your death.
Under the beneficiary continuation option for NQ contracts (regardless of
whether the owner and the annuitant are the same person):
o This feature is only available if the beneficiary is an individual. It is not
available for any entity such as a trust, even if all of the beneficiaries
of the trust are individuals.
o The contract continues in your name for the benefit of your beneficiary.
o If there is more than one beneficiary, each beneficiary's share will be
separately accounted for. It will be distributed over the respective
beneficiary's own life expectancy, if scheduled payments are chosen.
o The minimum amount that is required in order to elect the beneficiary
continuation option is $5,000 for each beneficiary.
o The beneficiary may make transfers among the investment options but no
additional contributions will be permitted.
o If you had elected the guaranteed minimum income benefit or an optional
enhanced death benefit under the contract, they will no longer be in
effect and charges for such benefits will stop. Also, any minimum death
benefit feature will no longer be in effect.
o If the beneficiary chooses the "5-year rule," withdrawals may be made at any
time. If the beneficiary instead chooses scheduled payments, the
beneficiary must also choose between two potential withdrawal options at
the time of election. If the beneficiary chooses "Withdrawal Option 1",
the beneficiary cannot later withdraw funds in addition to the scheduled
payments the beneficiary is receiving; "Withdrawal Option 1 " permits
total surrender only. "Withdrawal Option 2" permits the beneficiary to
take withdrawals, in addition to scheduled payments, at any time. However,
the scheduled payments under "Withdrawal Option 1" are afforded favorable
tax treatment as "annuity payments." See "Taxation of nonqualified
annuities" in "Tax Information" later in this Prospectus.
o Any partial withdrawals must be at least $300.
o Your beneficiary will have the right to name a beneficiary to receive any
remaining interest in the contract on the beneficiary's death.
o Upon the death of your beneficiary, the beneficiary he or she has named has
the option to either continue taking scheduled payments based on the
remaining life expectancy of the deceased beneficiary (if scheduled
payments were chosen) or to receive any remaining interest in the contract
in a lump sum. We will pay any remaining interest in the contract in a
lump sum if your beneficiary elects the 5-year rule. 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.
If you are both the owner and annuitant:
o 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 annuity account value to
equal the applicable death benefit if such death benefit is greater than
such account value, plus any amount applicable under the Protection Plus
feature, and adjusted for any subsequent withdrawals.
o No withdrawal charges, if any, will apply to any withdrawals by the
beneficiary.
If the owner and annuitant are not the same person:
o If the beneficiary continuation option is elected, the beneficiary
automatically becomes the new annuitant of the contract, replacing the
existing annuitant.
o The annuity account value will not be reset to the death benefit amount.
o The contract's withdrawal charge schedule will continue to be applied to any
withdrawal or surrender other than scheduled payments; the contract's free
corridor amount will continue to apply to withdrawals but does not apply
to surrenders.
o We do not impose a withdrawal charge on scheduled payments except if, when
added to any withdrawals previously taken in the same contract year,
including for this purpose a contract surrender, the total amount of
withdrawals and scheduled payments exceed the free corridor amount. See
the "Withdrawal charges" in "Charges and expenses" earlier in this
Prospectus.
If a contract is jointly owned:
o The surviving owner supersedes any other named beneficiary and may elect the
beneficiary continuation option.
o If the deceased joint owner was also the annuitant, see "If you are both the
owner and annuitant" earlier in this section.
o If the deceased joint owner was not the annuitant, see "If the owner and
annuitant are not the same person" earlier in this section.
Payment of death benefit 45
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 Equitable Accumulator(R) Plus(SM) contracts owned by
United States individual taxpayers. The tax rules can differ, depending on the
type of contract, whether NQ, traditional IRA, Roth IRA, QP or TSA. 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
without notice. 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 or values under the contract, or payments under the contract,
for example, amounts due to beneficiaries, may be subject to federal or state
gift, estate, or inheritance 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 adviser 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") and Code Section 403(b)
Arrangements ("TSAs"), respectively: an IRA or 403(b) annuity contract such as
this one, or an IRA or 403(b)(7) custodial or other qualified account. Annuity
contracts can also be purchased in connection with retirement 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. More information on IRAs and TSAs is provided
in the SAI. 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 Accumulator(R) Plus(SM), extra credit on each contribution,
choice of death benefits, the living benefit guaranteed minimum income benefit
guaranteed interest option, selection of investment funds and its choices of
pay-out options that are available in Accumulator(R) Plus(SM), as well as the
features and benefits of other permissible funding vehicles and the relative
costs of annuities and other arrangements. You should be aware that cost may
vary depending on the features and benefits made available and the charges and
expenses of the investment options or funds that you elect. Although certain
provisions of the Temporary Regulations on required minimum distributions
concerning the actuarial value of additional contract benefits, which could
have increased the amount required to be distributed from annuity contracts
funding qualified plans, TSAs and IRAs have currently been suspended, these or
similar provisions may apply in future years. You may want to discuss with your
tax adviser the potential implication of these Regulations before you purchase
this annuity contract or purchase additional features under this annuity
contract. See also Appendix II at the end of this Prospectus for a discussion
of QP contracts.
TRANSFERS AMONG VARIABLE INVESTMENT OPTIONS
You can make transfers among variable 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 the 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
46 Tax information
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 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.
PROTECTION PLUS FEATURE
In order to enhance the amount of the death benefit to be paid at the
Annuitant's death, you may purchase a Protection Plus rider for your NQ
contract. Although we regard this benefit as an investment protection feature
which should have no adverse tax effect, it is possible that the IRS could take
a contrary position or assert that the Protection Plus rider is not part of the
contract. In such a case, the charges for the Protection Plus rider could be
treated for federal income tax purposes as a partial withdrawal from the
contract. If this were so, such a deemed withdrawal could be taxable, and for
contract owners under age 59-1/2, also subject to a tax penalty. Were the IRS to
take this position, Equitable would take all reasonable steps to attempt to
avoid this result which could include amending the contract (with appropriate
notice to you).
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
Equitable Accumulator(R) Plus(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 the contract, of the
source contract carries over to the Equitable Accumulator(R) Plus(SM) NQ
contract.
An owner may 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 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.
Beneficiary continuation option
We have received a private letter ruling from the IRS regarding certain tax
consequences of scheduled payments under the beneficiary continuation option
for NQ contracts. See the discussion "Beneficiary continuation option for NQ
contracts only" in "Payment of death benefit" earlier in this Prospectus. Among
other things, the IRS rules that:
o scheduled payments under the beneficiary continuation option for NQ contracts
satisfy the death of owner rules of Section 72(s)(2) of the Code,
regardless of whether the beneficiary elects Withdrawal Option 1 or
Withdrawal Option 2;
o scheduled payments, any additional withdrawals under Withdrawal Option 2, or
contract surrenders under Withdrawal Option 1 will only be taxable to the
beneficiary when amounts are actually paid, regardless of the Withdrawal
Option selected by the beneficiary;
o a beneficiary who irrevocably elects scheduled payments with Withdrawal
Option 1 will receive "excludable amount" tax treatment on scheduled
payments. See "Annuity payments" earlier in this section. If the
beneficiary elects to surrender the contract before all scheduled payments
are paid, the amount received upon surrender is a non-annuity payment
taxable to the extend it exceeds any remaining investment in the contract.
Tax information 47
The ruling specifically does not address the taxation of any payments received
by a beneficiary electing Withdrawal Option 2 (whether scheduled payments or
any withdrawal that might be taken). There is no assurance that we will receive
any further rulings addressing the tax consequences of payments under
Withdrawal Option 2. Before electing the beneficiary continuation option
feature, the individuals you designate as beneficiary or successor owner should
discuss with their tax advisers the consequences of such elections.
The tax treatment of a withdrawal after the death of the owner taken as a
single sum or taken as withdrawals under the 5-year rule is generally the same
as the tax treatment of a withdrawal from or surrender of 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, in accordance with IRS formulas.
INVESTOR CONTROL ISSUES
Under certain circumstances, the IRS has stated that you could be treated as
the owner (for tax purposes) of the assets of Separate Accounts 45 and 49. If
you were treated as the owner, you would be taxable on income and gains
attributable to the shares of the underlying portfolios.
The circumstances that would lead to this tax treatment would be that, in the
opinion of the IRS, you could control the underlying investment of Separate
Accounts 45 and 49. Recently, the IRS has said that the owners of variable
annuities will not be treated as owning the separate account assets provided
the underlying portfolios are restricted to variable life and annuity assets.
The variable annuity owners must have the right only to choose among the
portfolios, and must have no right to direct the particular investment
decisions within the portfolios.
Although we believe that, under current IRS guidance, you would not be treated
as the owner of the assets of Separate Accounts 45 and 49, there are some
issues that remain unclear. For example, the IRS has not issued any guidance as
to whether having a larger number of portfolios available, or an unlimited
right to transfer among them, could cause you to be treated as the owner. We do
not know whether the IRS will ever provide such guidance or whether such
guidance, if unfavorable, would apply retroactively to your contract.
Furthermore, the IRS could reverse its current guidance at any time. We reserve
the right to modify your contract as necessary to prevent you from being
treated as the owner of the assets of Separate Accounts 45 and 49.
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 trustee or custodian holds
the assets funding the account for the benefit of the IRA owner. The assets
typically can include mutual funds and/or individual stocks and/or 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; and
o Roth IRAs 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 (http://www.irs.gov).
Equitable Life designs its IRA contracts to qualify as individual retirement
annuities under Section 408(b) of the Internal Revenue Code. You may purchase
the contract as a traditional IRA ("Rollover IRA") or Roth IRA ("Roth
Conversion IRA"). The SAI contains the information that the IRS requires you to
have before you purchase an IRA. The disclosure generally assumes direct
ownership of the individual retirement annuity contract. For contracts owned in
a custodial individual retirement account, the disclosure will apply only if
you terminate your account or transfer ownership of the contract to yourself.
We have received an opinion letter from the IRS approving the respective forms
of the Equitable Accumulator(R) traditional and Roth IRA
48 Tax information
contracts, as amended to reflect recent tax law changes, for use as a
traditional IRA and a Roth IRA, respectively. We do not know if and when any
such IRS formal approval will be received. 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 contracts submitted for IRS
approval do not include every feature possibly available under the Equitable
Accumulator(R) traditional and Roth IRA contracts.
PROTECTION PLUS(SM) FEATURE
The Protection Plus feature is offered for IRA contracts, subject to state and
contract availability. We have received IRS opinion letters that the contract
with a Protection Plus feature qualifies 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 contracts submitted for IRS approval do not
include every feature possibly available under the Equitable Accumulator(R)
traditional and Roth IRA contracts. You should discuss with your tax adviser
whether you should consider purchasing an Accumulator(R) Plus(SM) IRA or
Accumulator(R) Plus(SM) Roth IRA with the optional Protection Plus feature.
CONTRIBUTIONS
Individuals may make three different types of contributions to an 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 IRAs of the same type
("direct transfers").
In addition, an individual may make a taxable rollover contribution from a
traditional IRA to a Roth IRA ("conversion" contributions).
Contributions to all types of IRAs are compensation-based. They are either made
from your current compensation or have a connection with past compensation (for
example, rollover contributions from an eligible retirement plan that you had
with an employer relate to past compensation). Under certain circumstances,
your nonworking spouse, former spouse or surviving spouse may contribute to an
IRA. You can make regular contributions for any year to a traditional IRA
within federal tax law limits up until the calendar year you reach the age
70-1/2. Regular contributions for any year to a Roth IRA can be made at any time
during your life, subject to federal tax law limits.
The amount of contributions you may make to an IRA for any year and whether
such contributions are eligible for special tax treatment (for example,
deductibility from income or a special credit) may vary, depending on your
income, age and whether you participate in an employer-sponsored retirement
plan. Roth IRA contributions are not tax deductible. The maximum regular
contribution that can be made to all of your IRAs (whether traditional or Roth)
for the taxable year for which the contribution is made is $3,000 for 2004 and
$4,000 for 2005. The maximum regular contribution is increased to $3,500 for
2004 and $4,500 for 2005, if you are at least age 50 at any time during the
taxable year for which the contribution is made.
Rollover and transfer contributions are not subject to dollar limits. Rollover
contributions may be made to a traditional IRA from "eligible retirement plans"
which include other traditional IRAs, qualified plans, TSAs and governmental
employer 457(b) plans. For Roth IRAs, rollover contributions may be made from
other Roth IRAs and traditional IRAs. The conversion of a traditional IRA to a
Roth IRA is taxable. Direct transfer contributions may only be made directly
from one traditional IRA to another or from one Roth IRA to another.
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 adviser 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.
A more complete discussion of contributions to traditional IRAs and Roth IRAs
is contained in the SAI.
WITHDRAWALS AND DISTRIBUTIONS
You can withdraw any or all of your funds from an IRA at any time; you do not
need to wait for a special event like retirement. Earnings in IRAs are not
subject to federal income tax until amounts are paid to you or your
beneficiary. Withdrawals from an IRA , surrender of an IRA, death benefits from
an IRA and annuity payments from an IRA may be fully or partially taxable.
Withdrawals and distributions from IRAs are taxable as ordinary income (not
capital gain).
Payments from traditional IRAs and Roth IRAs are taxed differently. Payments
from traditional IRAs are generally fully taxable unless you have made
nondeductible regular contributions or rolled over after-tax contributions. In
any event, the issuer of the traditional IRA is entitled to report the
distribution as fully taxable and it is your responsibility to calculate the
taxable and tax-free portions of any traditional IRA payments on your own tax
returns.
Distributions from Roth IRAs generally receive return of contribution treatment
first under federal income tax calculation rules before any income is taxable.
Certain distributions from Roth IRAs may qualify for fully tax-free treatment.
These are distributions after you reach age 59-1/2, die, become disabled or meet
a qualified first-time homebuyer tax rule. You also have to meet a five-year
aging period.
A distribution from a traditional IRA will not be taxable if it is rolled over
to an eligible retirement plan. A distribution from a Roth IRA will not be
taxable if it is rolled over to another Roth IRA.
Taxable withdrawals or distributions from IRAs may be subject to an additional
10% penalty tax if you are under age 59-1/2, unless an exception applies.
Traditional IRAs are subject to required minimum distribution rules which
require that amounts begin to be distributed in a prescribed manner from the
IRA after the owner reaches age 70-1/2. These rules also require distributions
after the owner's death. No distributions are
Tax information 49
required to be made from Roth IRAs until after the Roth IRA owner's death, but
then the required minimum distribution rules apply.
A more complete discussion of the tax aspects of withdrawals and distributions
from traditional IRAs and Roth IRAs is contained in the SAI.
SPECIAL RULES FOR CONTRACTS FUNDING QUALIFIED PLANS
For QP contracts, your plan administrator or trustee notifies you as to tax
consequences. See Appendix II at the end of this Prospectus.
TAX-SHELTERED ANNUITY CONTRACTS (TSAS)
GENERAL
This section covers some of the special tax rules that apply to annuity
contracts under Section 403(b) of the Internal Revenue Code (TSAs).
Generally, there are two types of funding vehicles available for 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.
PROTECTION PLUS FEATURE
The Protection Plus feature is offered for Rollover TSA contracts, subject to
state and contract availability. There is no assurance that the contract with
the Protection Plus feature meets the IRS qualification requirements for TSAs.
There is a limit to the amount of life insurance benefits that TSAs may offer.
Although we view the optional Protection Plus benefit as an investment
protection feature which should have no adverse tax effect and not as a life
insurance benefit, it is possible that the IRS could take a contrary position
regarding tax qualification or assert that the Protection Plus rider is not a
permissible part of a TSA contract. If the IRS were to take the position that
the optional Protection Plus benefit is not part of the contract, in such a
case, the charges for the Protection Plus rider could be treated for federal
income tax purposes as a partial withdrawal from the contract. If this were so,
such a deemed withdrawal could affect the tax qualification of the TSA and
could be taxable. Were the IRS to take any adverse position, Equitable would
take all reasonable steps to attempt to avoid any adverse result, which would
include amending the contract (with appropriate notice to you). You should
discuss with your tax adviser whether you should consider purchasing an
Accumulator(R) Plus(SM) Rollover TSA contract with the optional Protection Plus
feature.
CONTRIBUTIONS TO TSAS
There are two ways you can make contributions to your Rollover TSA contract:
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.
If you make a direct transfer, you must fill out our transfer form.
ROLLOVER OR DIRECT TRANSFER CONTRIBUTIONS. You must establish your TSA with
funds that are directly transferred from another 403(b) arrangement or rolled
over from another 403(b) arrangement. You may make subsequent rollover
contributions to your Rollover TSA contract from these sources: qualified
plans, governmental employer 457(b) plans and traditional IRAs, as well as
other TSAs and 403(b) arrangements. All rollover contributions must be pre-tax
funds only with appropriate documentation satisfactory to us.
You should discuss with your tax adviser 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.
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 Equitable Accumulator(R) Plus(SM) contract receiving the funds has
provisions at least as restrictive as the source contract.
Before you transfer funds to a Rollover TSA contract, you may have to obtain
your employer's authorization or demonstrate that you do not need employer
authorization.
Contributions to TSAs are discussed in greater detail in the SAI.
DISTRIBUTIONS FROM 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. Your employer will tell us this when you establish the TSA through
a direct transfer.
You may also need spousal consent for certain transactions and payments.
WITHDRAWAL RESTRICTIONS. If this is a Revenue Ruling 90-24 direct transfer, we
will treat all amounts transferred to this contract and any future earnings on
the amount transferred as not eligible for withdrawal until one of the
following events happens:
o you are severed from employment with the employer which provided the funds to
purchase the TSA you are transferring to the Rollover TSA; or
o you reach age 59-1/2; or
o you die; or
o you become disabled (special federal income tax definition); or
o you take a hardship withdrawal (special federal income tax definition).
The amount of funds subject to withdrawal restrictions may depend on the source
of the funds used to establish the Accumulator(R) Plus(SM) TSA.
50 Tax information
TAX TREATMENT OF DISTRIBUTIONS. Amounts held under TSAs are generally not
subject to federal income tax until benefits are distributed. Distributions
include withdrawals from your TSA contract and annuity payments from your TSA
contract. Death benefits paid to a beneficiary are also taxable distributions.
Unless an exception applies, amounts distributed from TSAs are includable in
gross income as ordinary income. Distributions from TSAs may be subject to 20%
federal income tax withholding. See "Federal and state income tax withholding
and information reporting" later in this Prospectus. In addition, TSA
distributions may be subject to additional tax penalties.
If you have made after-tax contributions, you will have a tax basis in your TSA
contract, which will be recovered tax-free. Since we currently do not accept
after-tax funds, we do not track your investment in the contract, if any. We
will report all distributions from this Rollover TSA as fully taxable. It is
your responsibility to determine how much of the distribution is taxable.
A penalty tax of 10% of the taxable portion of the distribution applies to
distributions from a TSA before your reach age 59-1/2 unless an exception
applies.
Distributions from TSAs are discussed in greater detail in the SAI.
LOANS FROM TSAS
Loans are generally not treated as a taxable distribution. You may take loans
from a TSA unless restricted by the employer (for example, under an employer
plan subject to ERISA). If you cannot take a loan, or cannot take a loan
without approval from the employer who provided the funds, we will have this
information in our records based on what you and the employer who provided the
TSA funds told us when you purchased your contract.
Loans from TSAs are discussed in greater detail in the SAI.
TAX-DEFERRED ROLLOVERS AND DIRECT TRANSFERS
You may roll over an "eligible rollover distribution" from a TSA into another
eligible retirement plan (a qualified plan, a governmental employer 457(b) plan
(separate accounting required), another TSA or a traditional IRA) which agrees
to accept the rollover.
A spousal beneficiary may also roll over death benefits or certain
divorce-related payments.
Direct transfers of TSA funds from one TSA to another under Revenue Ruling
90-24 are not distributions.
Rollovers from TSAs are discussed in greater detail in the SAI.
REQUIRED MINIMUM DISTRIBUTIONS
TSAs are subject to required minimum distribution rules beginning at age 70-1/2
or separation from service, if later. These rules are discussed in greater
detail in the SAI.
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 $17,280 in periodic annuity payments in
2004, 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
Tax information 51
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), 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.
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 AND QUALIFIED PLAN DISTRIBUTIONS
Unless you have the distribution go directly to the new plan, eligible rollover
distributions from qualified plans and TSAs are subject to mandatory 20%
withholding. The plan administrator is responsible for withholding from
qualified plan distributions. An eligible rollover distribution from a TSA or a
qualified plan can be rolled over to another eligible retirement plan. All
distributions from a TSA 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 from service with the employer; 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
o substantially equal periodic payments made for a specified period of 10 years
or more; or
o hardship withdrawals; 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.
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 No. 49 for taxes. We
do not now, but may in the future set up reserves for such taxes.
52 Tax information
8. More information
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ABOUT SEPARATE ACCOUNT NO. 49
Each variable investment option is a subaccount of Separate Account No. 49. We
established Separate Account No. 49 in 1996 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 No. 49 and may withdraw any amounts that exceed
our reserves and other liabilities with respect to variable investment options
under our contracts. The results of the Separate Account's operations are
accounted for without regard to Equitable Life's other operations.
The Separate Account 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 the Separate Account.
Each subaccount (variable investment option) within the Separate Account
invests solely in class IB 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 the Separate Account, 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 the Separate Account 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 the Separate Account
or a variable investment option directly);
(5) to deregister the Separate Account under the Investment Company Act of
1940;
(6) to restrict or eliminate any voting rights as to the Separate Account; 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
The Trusts 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.
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, 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.
FMO rates are determined daily. The rates in the table below are illustrative
only and will most likely differ from the rates applicable at time of purchase.
Current FMO rates can be obtained from your financial professional.
The rates to maturity for new allocations as of February 13, 2004 and the
related price per $100 of maturity value were as shown below.
- --------------------------------------------------------------------------------
Fixed Maturity
Options with
February 13th Price
Maturity Date of Rate to Maturity as of Per $100 of
Maturity Year February 13, 2004 Maturity Value
- --------------------------------------------------------------------------------
2005 3.00% * $ 97.08
2006 3.00% * $ 94.25
2007 3.00% * $ 91.51
2008 3.00% * $ 88.84
2009 3.00% * $ 86.25
2010 3.00% * $ 83.73
2011 3.00% * $ 81.30
2012 3.30% $ 77.11
2013 3.53% $ 73.16
2014 3.73% $ 69.31
- --------------------------------------------------------------------------------
* Since these rates to maturity are 3%, no amounts could have been allocated
to these options.
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 any 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.
More information 53
(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 for your FMO based on the rate
for a new FMO issued on the same date and having the same maturity
date as your FMO; if the same maturity date is not available for
new FMOs, we determine a rate that is between the rates for new FMO
maturities that immediately precede and immediately follow your
FMOs maturity date.
(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.
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) 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 by using a widely-published Index. We reserve the right to add up to
0.25% 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 expect the rates to maturity for the fixed maturity options 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,
guaranteed interest option and fixed maturity options as well as our general
obligations. Credits allocated to your account value are funded from our
general account.
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.
We have been advised that the staff of the SEC has not reviewed the portions of
this Prospectus that relate to the general account. 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
WIRE TRANSMITTALS AND ELECTRONIC APPLICATIONS
We accept initial and subsequent contributions sent by wire to our processing
office by agreement with certain broker-dealers. Such transmittals must be
accompanied by information we require to allocate your contribution. Wire
orders not accompanied by complete information may be retained as described
under "How you can make your contributions" under "Contract features and
benefits" earlier in this Prospectus.
Even if we accept the wire order and essential information, a contract
generally will not be issued until we receive and accept a properly completed
application. In certain cases we may issue a contract based on information
provided through certain broker-dealers with which we have established
electronic facilities. In any such cases, you must sign our Acknowledgment of
Receipt form.
54 More information
Where we require a signed application, the above procedures do not apply and no
financial transactions will be permitted until we receive the signed
application and have issued the contract. Where we issue a contract based on
information provided through electronic facilities, we require an
Acknowledgment of Receipt form, and financial transactions are only permitted
if you request them in writing, sign the request and have it signature
guaranteed, until we receive the signed Acknowledgment of Receipt form. After
your contract has been issued, additional contributions may be transmitted by
wire.
In general, the transaction date for electronic transmissions is the date on
which we receive at our regular processing office all required information and
the funds due for your contribution. We may also establish same-day electronic
processing facilities with a broker-dealer that has undertaken to pay
contribution amounts on behalf of our customers. In such cases, the transaction
date for properly processed orders is the business day on which the
broker-dealer inputs all required information into its electronic processing
system. You can contact us to find out more about such arrangements.
After your contract has been issued, additional contributions may be
transmitted by wire.
AUTOMATIC INVESTMENT PROGRAM -- FOR NQ CONTRACTS ONLY
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 contract on a monthly or quarterly basis. AIP is not available for
Rollover IRA, Roth Conversion IRA, QP contracts or Rollover TSA contracts.
The minimum amounts we will deduct are $100 monthly and $300 quarterly. AIP
additional contributions may be allocated to any of the variable investment
options and available fixed maturity options. 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.
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. on a business day, we will use the next business day.
o A loan request under your Rollover TSA contract will be processed on the
first business day of the month following the date on which the properly
completed loan request form is received.
o If your transaction is set to occur on the same day of the month as the
contract date and that date is the 29th, 30th or 31st of the month, then
the transaction will occur on the 1st day of the next month.
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 If we have entered into an agreement with your broker-dealer for automated
processing of contributions upon receipt of customer order, your
contribution will be considered received at the time your broker-dealer
receives your contribution and all information needed to process your
application, along with any required documents, and transmits your order
to us in accordance with our processing procedures. Such arrangements may
apply to initial contributions, subsequent contributions, or both, and may
be commenced or terminated at any time without prior notice. If required
by law, the "closing time" for such orders will be earlier than 4 p.m.,
Eastern Time.
CONTRIBUTIONS, CREDITS, AND TRANSFERS
o Contributions and credits allocated to the variable investment options are
invested at the value next determined after the close of the business day.
o Contributions and credits allocated to the guaranteed interest option will
receive the crediting rate in effect on that business day for the
specified time period.
o Contributions and credits allocated to a fixed maturity option will receive
the rate to maturity in effect for that fixed maturity option on that
business day (unless a rate lock-in is applicable).
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 a fixed maturity option will be based on the rate to maturity in
effect for that fixed maturity option on the business day of the transfer.
o Transfers to the guaranteed interest option will receive the crediting rate
in effect on that business day for the specified time period.
o For the interest sweep option, 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:
More information 55
o the election of trustees;
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 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 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 NO. 49 VOTING RIGHTS
If actions relating to the Separate Account 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 No. 49, our ability to meet our obligations under the
contracts, or the distribution of the contracts.
ABOUT OUR INDEPENDENT AUDITORS
The consolidated financial statements of Equitable Life at December 31, 2003
and 2002, and for the three years ended December 31, 2003 incorporated in this
Prospectus by reference to the 2003 Annual Report on Form 10-K are incorporated
in reliance on the report of PricewaterhouseCoopers LLP, independent auditors,
given on the authority of said firm as experts in auditing and accounting.
FINANCIAL STATEMENTS
The financial statements of Separate Account No. 49, as well as 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 1-800-789-7771.
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 Rollover IRA, Roth Conversion IRA,
QP or Rollover TSA contract except by surrender to us. If your individual
retirement annuity contract is held in your custodial individual retirement
account, you may only assign or transfer ownership of such an IRA contract to
yourself. Loans are not available and you cannot assign Rollover IRA, Roth
Conversion IRA and QP contracts as security for a loan or other obligation. If
the employer that provided the funds does not restrict them, loans are
available under a Rollover TSA contract.
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 Rollover IRA, Roth
Conversion IRA, QP or Rollover TSA 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
The contracts are distributed by AXA Distributors, LLC ("AXA Distributors").
AXA Distributors serves as principal underwriter of Separate Account No. 49.
The offering of the contracts is intended to be continuous.
AXA Distributors is a successor by merger to all of the functions, rights and
obligations of Equitable Distributors, Inc. ("EDI"). Like AXA Distributors, EDI
was owned by Equitable Holdings, LLC.
The contracts are sold by financial professionals of AXA Distributors, as well
as by affiliated and unaffiliated broker dealers who have entered into selling
agreements with AXA Distributors.
56 More information
We pay broker-dealer sales compensation that will generally not exceed 6.0% of
the total contributions made under the contracts. Broker-dealers receiving
sales compensation will generally pay a portion of it to their financial
representatives as commissions related to the sales of the contracts. AXA
Distributors may also receive compensation and reimbursement for its marketing
services under the terms of its distribution agreement with Equitable Life, as
well as payments from portfolio advisers for sales meetings and/or seminar
sponsorships.
Equitable and/or AXA Distributors and/or AXA Advisors may use their respective
past profits or other resources to pay brokers and other financial
intermediaries for certain expenses they incur in providing services intended
to promote the sales of our products and/or shares in the underlying Trusts.
These services may include sales personnel training, prospectus review,
marketing and related services as well as support services that benefit
contract owners.
Similarly, in an effort to promote the sale of our products, AXA Advisors may
provide its financial professionals and managerial personnel with a higher
percentage of sales commissions and/or more compensation for the sale of an
Equitable variable product than it would for the sale of another product. Such
practice is known as providing differential compensation. Other forms of
compensation financial professionals may receive include, health and retirement
benefits, credits towards stock options awards and rewards for sales incentive
campaigns. In addition, managerial personnel may receive expense
reimbursements, marketing allowances and so called "overrides." In part for tax
reasons, AXA Advisors financial professionals and managerial personnel qualify
for health and retirement benefits based on their sales of our variable
products.
These payments and differential compensation (together, "payments") can vary in
amount based on the applicable product and/or entity or individual involved. As
with any incentive, such payments may cause the recipient to show preference in
recommending the purchase or sale of our products. However, under applicable
rules of the National Association of Securities Dealers, Inc., AXA Advisors
financial professionals may only recommend to you products that they reasonably
believe are suitable for you based on facts that you have disclosed as to your
other security holdings, financial situation and needs. In making any
recommendation, financial professionals may nonetheless face conflicts of
interest because of the differences in compensation from one product category
to another, and because of differences in compensation between products in the
same category. Although Equitable takes all of its costs into account in
establishing the level of fees and expenses in our products, payments made will
not result in any separate charge to you under your contract.
More information 57
9. Incorporation of certain documents by reference
- --------------------------------------------------------------------------------
Equitable Life's Annual Report on Form 10-K for the year ended December 31,
2003 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).
58 Incorporation of certain documents by reference
Appendix I: Condensed financial information
- --------------------------------------------------------------------------------
The unit values and number of units outstanding shown below are for contracts
offered under Separate Account 49 with the same daily asset charges of 1.40%.
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, 2003
- ----------------------------------------------------------------------------------------------------------------------------------
For the years ending December 31,
- ----------------------------------------------------------------------------------------------------------------------------------
2003 2002
- ----------------------------------------------------------------------------------------------------------------------------------
AXA Moderate Allocation
- ----------------------------------------------------------------------------------------------------------------------------------
Unit value $ 40.88 $ 34.80
- ----------------------------------------------------------------------------------------------------------------------------------
Number of units outstanding (000's) 6,360 1,307
- ----------------------------------------------------------------------------------------------------------------------------------
AXA Premier VIP Aggressive Equity
- ----------------------------------------------------------------------------------------------------------------------------------
Unit value $ 48.29 $ 35.61
- ----------------------------------------------------------------------------------------------------------------------------------
Number of units outstanding (000's) 352 65
- ----------------------------------------------------------------------------------------------------------------------------------
AXA Premier VIP Core Bond
- ----------------------------------------------------------------------------------------------------------------------------------
Unit value $ 10.91 $ 10.67
- ----------------------------------------------------------------------------------------------------------------------------------
Number of units outstanding (000's) 21,868 7,979
- ----------------------------------------------------------------------------------------------------------------------------------
AXA Premier VIP Health Care
- ----------------------------------------------------------------------------------------------------------------------------------
Unit value $ 9.97 $ 7.89
- ----------------------------------------------------------------------------------------------------------------------------------
Number of units outstanding (000's) 5,004 1,289
- ----------------------------------------------------------------------------------------------------------------------------------
AXA Premier VIP High Yield
- ----------------------------------------------------------------------------------------------------------------------------------
Unit value $ 27.25 $ 22.55
- ----------------------------------------------------------------------------------------------------------------------------------
Number of units outstanding (000's) 7,467 1,128
- ----------------------------------------------------------------------------------------------------------------------------------
AXA Premier VIP International Equity
- ----------------------------------------------------------------------------------------------------------------------------------
Unit value $ 10.33 $ 7.80
- ----------------------------------------------------------------------------------------------------------------------------------
Number of units outstanding (000's) 5,137 1,360
- ----------------------------------------------------------------------------------------------------------------------------------
AXA Premier VIP Large Cap Core Equity
- ----------------------------------------------------------------------------------------------------------------------------------
Unit value $ 9.65 $ 7.64
- ----------------------------------------------------------------------------------------------------------------------------------
Number of units outstanding (000's) 4,778 1,529
- ----------------------------------------------------------------------------------------------------------------------------------
AXA Premier VIP Large Cap Growth
- ----------------------------------------------------------------------------------------------------------------------------------
Unit value $ 8.74 $ 6.78
- ----------------------------------------------------------------------------------------------------------------------------------
Number of units outstanding (000's) 9,505 2,593
- ----------------------------------------------------------------------------------------------------------------------------------
AXA Premier VIP Large Cap Value
- ----------------------------------------------------------------------------------------------------------------------------------
Unit value $ 10.22 $ 7.90
- ----------------------------------------------------------------------------------------------------------------------------------
Number of units outstanding (000's) 8,731 2,676
- ----------------------------------------------------------------------------------------------------------------------------------
AXA Premier VIP Small/Mid Cap Growth
- ----------------------------------------------------------------------------------------------------------------------------------
Unit value $ 8.57 $ 6.20
- ----------------------------------------------------------------------------------------------------------------------------------
Number of units outstanding (000's) 12,264 3,087
- ----------------------------------------------------------------------------------------------------------------------------------
AXA Premier VIP Small/Mid Cap Value
- ----------------------------------------------------------------------------------------------------------------------------------
Unit value $ 10.21 $ 7.37
- ----------------------------------------------------------------------------------------------------------------------------------
Number of units outstanding (000's) 9,465 2,371
- ----------------------------------------------------------------------------------------------------------------------------------
AXA Premier VIP Technology
- ----------------------------------------------------------------------------------------------------------------------------------
Unit value $ 8.80 $ 5.66
- ----------------------------------------------------------------------------------------------------------------------------------
Number of units outstanding (000's) 3,799 1,127
- ----------------------------------------------------------------------------------------------------------------------------------
EQ/Alliance Common Stock
- ----------------------------------------------------------------------------------------------------------------------------------
Unit value $208.22 $ 141.20
- ----------------------------------------------------------------------------------------------------------------------------------
Number of units outstanding (000's) 814 112
- ----------------------------------------------------------------------------------------------------------------------------------
Appendix I: Condensed financial information A-1
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, 2003 (CONTINUED)
- ----------------------------------------------------------------------------------------------------------------------------------
For the years ending December 31,
- ----------------------------------------------------------------------------------------------------------------------------------
2003 2002
- ----------------------------------------------------------------------------------------------------------------------------------
EQ/Alliance Growth and Income
- ----------------------------------------------------------------------------------------------------------------------------------
Unit value $ 25.38 $ 19.73
- ----------------------------------------------------------------------------------------------------------------------------------
Number of units outstanding (000's) 6,681 1,786
- ----------------------------------------------------------------------------------------------------------------------------------
EQ/Alliance Intermediate Government
Securities
- ----------------------------------------------------------------------------------------------------------------------------------
Unit value $ 18.42 $ 18.29
- ----------------------------------------------------------------------------------------------------------------------------------
Number of units outstanding (000's) 6,022 2,463
- ----------------------------------------------------------------------------------------------------------------------------------
EQ/Alliance International
- ----------------------------------------------------------------------------------------------------------------------------------
Unit value $ 11.35 $ 8.52
- ----------------------------------------------------------------------------------------------------------------------------------
Number of units outstanding (000's) 6,792 1,026
- ----------------------------------------------------------------------------------------------------------------------------------
EQ/Alliance Premier Growth
- ----------------------------------------------------------------------------------------------------------------------------------
Unit value $ 5.86 $ 4.83
- ----------------------------------------------------------------------------------------------------------------------------------
Number of units outstanding (000's) 8,430 2,607
- ----------------------------------------------------------------------------------------------------------------------------------
EQ/Alliance Quality Bond
- ----------------------------------------------------------------------------------------------------------------------------------
Unit value $ 15.45 $ 15.13
- ----------------------------------------------------------------------------------------------------------------------------------
Number of units outstanding (000's) 7,296 2,167
- ----------------------------------------------------------------------------------------------------------------------------------
EQ/Alliance Small Cap Growth
- ----------------------------------------------------------------------------------------------------------------------------------
Unit value $ 13.61 $ 9.80
- ----------------------------------------------------------------------------------------------------------------------------------
Number of units outstanding (000's) 5,936 1,577
- ----------------------------------------------------------------------------------------------------------------------------------
EQ/Bernstein Diversified Value
- ----------------------------------------------------------------------------------------------------------------------------------
Unit value $ 12.84 $ 10.11
- ----------------------------------------------------------------------------------------------------------------------------------
Number of units outstanding (000's) 21,328 5,924
- ----------------------------------------------------------------------------------------------------------------------------------
EQ/Calvert Socially Responsible
- ----------------------------------------------------------------------------------------------------------------------------------
Unit value $ 7.93 $ 6.28
- ----------------------------------------------------------------------------------------------------------------------------------
Number of units outstanding (000's) 964 208
- ----------------------------------------------------------------------------------------------------------------------------------
EQ/Capital Guardian International
- ----------------------------------------------------------------------------------------------------------------------------------
Unit value $ 9.51 $ 7.27
- ----------------------------------------------------------------------------------------------------------------------------------
Number of units outstanding (000's) 8,648 1,957
- ----------------------------------------------------------------------------------------------------------------------------------
EQ/Capital Guardian Research
- ----------------------------------------------------------------------------------------------------------------------------------
Unit value $ 10.30 $ 7.95
- ----------------------------------------------------------------------------------------------------------------------------------
Number of units outstanding (000's) 8,367 2,246
- ----------------------------------------------------------------------------------------------------------------------------------
EQ/Capital Guardian U. S. Equity
- ----------------------------------------------------------------------------------------------------------------------------------
Unit value $ 10.26 $ 7.63
- ----------------------------------------------------------------------------------------------------------------------------------
Number of units outstanding (000's) 15,286 3,232
- ----------------------------------------------------------------------------------------------------------------------------------
EQ/Emerging Markets Equity
- ----------------------------------------------------------------------------------------------------------------------------------
Unit value $ 8.69 $ 5.66
- ----------------------------------------------------------------------------------------------------------------------------------
Number of units outstanding (000's) 5,307 1,261
- ----------------------------------------------------------------------------------------------------------------------------------
EQ/Equity 500 Index
- ----------------------------------------------------------------------------------------------------------------------------------
Unit value $ 23.45 $ 18.61
- ----------------------------------------------------------------------------------------------------------------------------------
Number of units outstanding (000's) 12,430 3,667
- ----------------------------------------------------------------------------------------------------------------------------------
EQ/Evergreen Omega
- ----------------------------------------------------------------------------------------------------------------------------------
Unit value $ 7.87 $ 5.77
- ----------------------------------------------------------------------------------------------------------------------------------
Number of units outstanding (000's) 3,589 625
- ----------------------------------------------------------------------------------------------------------------------------------
EQ/FI Mid Cap
- ----------------------------------------------------------------------------------------------------------------------------------
Unit value $ 9.71 $ 6.86
- ----------------------------------------------------------------------------------------------------------------------------------
Number of units outstanding (000's) 16,254 3,145
- ----------------------------------------------------------------------------------------------------------------------------------
A-2 Appendix I: Condensed financial information
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, 2003 (CONTINUED)
- ----------------------------------------------------------------------------------------------------------------------------------
For the years ending December 31,
- ----------------------------------------------------------------------------------------------------------------------------------
2003 2002
- ----------------------------------------------------------------------------------------------------------------------------------
EQ/FI Small/Mid Cap Value
- ----------------------------------------------------------------------------------------------------------------------------------
Unit value $ 12.35 $ 9.40
- ----------------------------------------------------------------------------------------------------------------------------------
Number of units outstanding (000's) 12,257 4,007
- ----------------------------------------------------------------------------------------------------------------------------------
EQ/J.P. Morgan Core Bond
- ----------------------------------------------------------------------------------------------------------------------------------
Unit value $ 13.44 $ 13.19
- ----------------------------------------------------------------------------------------------------------------------------------
Number of units outstanding (000's) 18,211 5,930
- ----------------------------------------------------------------------------------------------------------------------------------
EQ/Janus Large Cap Growth
- ----------------------------------------------------------------------------------------------------------------------------------
Unit value $ 5.44 $ 4.38
- ----------------------------------------------------------------------------------------------------------------------------------
Number of units outstanding (000's) 7,279 2,586
- ----------------------------------------------------------------------------------------------------------------------------------
EQ/Lazard Small Cap Value
- ----------------------------------------------------------------------------------------------------------------------------------
Unit value $ 14.35 $ 10.59
- ----------------------------------------------------------------------------------------------------------------------------------
Number of units outstanding (000's) 10,965 3,006
- ----------------------------------------------------------------------------------------------------------------------------------
EQ/Marsico Focus
- ----------------------------------------------------------------------------------------------------------------------------------
Unit value $ 12.78 $ 9.89
- ----------------------------------------------------------------------------------------------------------------------------------
Number of units outstanding (000's) 20,675 4,362
- ----------------------------------------------------------------------------------------------------------------------------------
EQ/Mercury Basic Value Equity
- ----------------------------------------------------------------------------------------------------------------------------------
Unit value $ 18.24 $ 14.10
- ----------------------------------------------------------------------------------------------------------------------------------
Number of units outstanding (000's) 8,213 2,399
- ----------------------------------------------------------------------------------------------------------------------------------
EQ/Mercury International Equity
- ----------------------------------------------------------------------------------------------------------------------------------
Unit value $ 14.03 $ 11.11
- ----------------------------------------------------------------------------------------------------------------------------------
Number of units outstanding (000's) 5,257 1,712
- ----------------------------------------------------------------------------------------------------------------------------------
EQ/MFS Emerging Growth Companies
- ----------------------------------------------------------------------------------------------------------------------------------
Unit value $ 11.84 $ 9.28
- ----------------------------------------------------------------------------------------------------------------------------------
Number of units outstanding (000's) 2,043 538
- ----------------------------------------------------------------------------------------------------------------------------------
EQ/MFS Investors Trust
- ----------------------------------------------------------------------------------------------------------------------------------
Unit value $ 8.15 $ 6.77
- ----------------------------------------------------------------------------------------------------------------------------------
Number of units outstanding (000's) 4,865 1,329
- ----------------------------------------------------------------------------------------------------------------------------------
EQ/Money Market
- ----------------------------------------------------------------------------------------------------------------------------------
Unit value $ 28.02 $ 28.26
- ----------------------------------------------------------------------------------------------------------------------------------
Number of units outstanding (000's) 4,639 4,457
- ----------------------------------------------------------------------------------------------------------------------------------
EQ/Putnam Growth & Income Value
- ----------------------------------------------------------------------------------------------------------------------------------
Unit value $ 12.02 $ 9.62
- ----------------------------------------------------------------------------------------------------------------------------------
Number of units outstanding (000's) 4,353 1,383
- ----------------------------------------------------------------------------------------------------------------------------------
EQ/Putnam Voyager
- ----------------------------------------------------------------------------------------------------------------------------------
Unit value $ 11.43 $ 9.35
- ----------------------------------------------------------------------------------------------------------------------------------
Number of units outstanding (000's) 2,284 762
- ----------------------------------------------------------------------------------------------------------------------------------
EQ/Small Company Index
- ----------------------------------------------------------------------------------------------------------------------------------
Unit value $ 12.32 $ 8.57
- ----------------------------------------------------------------------------------------------------------------------------------
Number of units outstanding (000's) 6,188 1,437
- ----------------------------------------------------------------------------------------------------------------------------------
EQ/Technology
- ----------------------------------------------------------------------------------------------------------------------------------
Unit value $ 4.07 $ 2.88
- ----------------------------------------------------------------------------------------------------------------------------------
Number of units outstanding (000's) 6,772 1,429
- ----------------------------------------------------------------------------------------------------------------------------------
Appendix I: Condensed financial information A-3
Appendix II: Purchase considerations for QP contracts
- --------------------------------------------------------------------------------
Trustees who are considering the purchase of an Equitable Accumulator(R)
Plus(SM) QP contract should discuss with their tax advisers whether this is an
appropriate investment vehicle for the employer's plan. Trustees should consider
whether the plan provisions permit the investment of plan assets in the QP
contract, the distribution of such an annuity and the payment of death benefits
in accordance with the requirements of the federal income tax rules. The QP
contract and this Prospectus should be reviewed in full, and the following
factors, among others, should be noted. Assuming continued plan qualification
and operation, earnings on qualified plan assets will accumulate value on a
tax-deferred basis even if the plan is not funded by the Equitable
Accumulator(R) Plus(SM) QP contract or another annuity. Therefore, you should
purchase an Equitable Accumulator(R) Plus(SM) QP contract to fund a plan for the
contract's features and benefits other than tax deferral, after considering the
relative costs and benefits of annuity contracts and other types of arrangements
and funding vehicles. This QP contract accepts transfer contributions only and
not regular, ongoing payroll contributions. For 401(k) plans under defined
contribution plans, no employee after-tax contributions are accepted.
We will not accept defined benefit plans. For defined contribution plans, we
will only accept transfers from another defined contribution plan or a change
of investment vehicles in the plan. Only one additional transfer contribution
may be made per contract year. If overfunding of a plan occurs or amounts
attributable to an excess contribution must be withdrawn, withdrawals from the
QP contract may be required. A withdrawal charge and/or market value adjustment
may apply.
Equitable Life will not perform or provide any plan recordkeeping services with
respect to the QP contracts. The plan's administrator will be solely
responsible for performing or providing for all such services. There is no loan
feature offered under the QP contracts, so if the plan provides for loans and a
participant/employee takes a loan from the plan, other plan assets must be used
as the source of the loan and any loan repayments must be credited to other
investment vehicles and/or accounts available under the plan.
Given that required minimum distributions must generally commence from the plan
for annuitants after age 70-1/2, trustees should consider that:
o the QP contract may not be an appropriate purchase for annuitants approaching
or over age 70-1/2;
o although certain provisions of the Temporary Regulations on required minimum
distributions which would have required that the actuarial value of
additional annuity contract benefits be added to the dollar amount credited
for purposes of calculating required minimum distributions have currently
been suspended, these or similar provisions may apply in future years, and
could increase the amounts required to be distributed from the contract; and
o the guaranteed minimum income benefit under the Living Benefit may not be an
appropriate feature for annuitants who are older than 601/2 when the
contract is issued.
Finally, because the method of purchasing the QP contract, including the large
initial contribution and the features of the QP contract may appeal more to
plan participants/employees who are older and tend to be highly paid, and
because certain features of the QP contract are available only to plan
participants/employees who meet certain minimum and/or maximum age
requirements, plan trustees should discuss with their advisers whether the
purchase of the QP contract would cause the plan to engage in prohibited
discrimination in contributions, benefits or otherwise.
B-1 Appendix II: Purchase considerations for QP contracts
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 was allocated
on February 13, 2004 to a fixed maturity option with a maturity date of
February 13, 2013 (nine years later) at a hypothetical rate to maturity of
7.00%, resulting in a maturity value of $183,914 on the maturity date. We
further assume that a withdrawal of $50,000 is made four years later on
February 13, 2009.
- -------------------------------------------------------------------------------------
Hypothetical Assumed
rate to maturity on
February 13, 2009
5.00% 9.00%
- -------------------------------------------------------------------------------------
As of February 13, 2009 (before withdrawal)
- -------------------------------------------------------------------------------------
(1) Market adjusted amount $144,082 $ 119,503
- -------------------------------------------------------------------------------------
(2) Fixed maturity amount $131,104 $ 131,104
- -------------------------------------------------------------------------------------
(3) Market value adjustment:
- -------------------------------------------------------------------------------------
(1) - (2) $ 12,978 $ (11,601)
- -------------------------------------------------------------------------------------
On February 13, 2009 (after withdrawal)
- -------------------------------------------------------------------------------------
(4) Portion of market value adjustment associated with withdrawal:
(3) x [$50,000/(1)] $ 4,504 $ (4,854)
- -------------------------------------------------------------------------------------
(5) Reduction in fixed maturity amount: [$50,000 - (4)] $ 45,496 $ 54,854
- -------------------------------------------------------------------------------------
(6) Fixed maturity amount: (2) - (5) $ 85,608 $ 76,250
- -------------------------------------------------------------------------------------
(7) Maturity value $120,091 $ 106,965
- -------------------------------------------------------------------------------------
(8) Market adjusted amount of (7) $ 94,082 $ 69,503
- -------------------------------------------------------------------------------------
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 portion of 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 portion of a positive
market value adjustment is realized. The market value is computed differently
if you withdraw amounts on a date other than the anniversary of the
establishment of the fixed maturity option.
Appendix III: Market value adjustment example C-1
Appendix IV: Guaranteed enhanced death benefit example
- --------------------------------------------------------------------------------
The death benefit under the contracts is equal to the account value or, if
greater, the enhanced death benefit.
The following illustrates the enhanced death benefit calculation. Assuming
$100,000 (plus the applicable 4% credit) is allocated to the variable
investment options (with no allocation to the EQ/Alliance Intermediate
Government Securities, EQ/Money Market, the guaranteed interest option or the
fixed maturity options), no additional contributions, no transfers, no
withdrawals and no loans under a Rollover TSA contract, the enhanced death
benefit for an annuitant age 45 would be calculated as follows:
- ---------------------------------------------------------------------------------------------------------
6% roll up to age 85 Annual ratchet to age 85
End of Contract Year Account Value enhanced death benefit enhanced death benefit
- ---------------------------------------------------------------------------------------------------------
1 109,200 110,240 109,200
- ---------------------------------------------------------------------------------------------------------
2 120,120 116,854 120,120
- ---------------------------------------------------------------------------------------------------------
3 134,534 123,866 134,534
- ---------------------------------------------------------------------------------------------------------
4 107,628 131,298 134,534
- ---------------------------------------------------------------------------------------------------------
5 118,390 139,175 134,534
- ---------------------------------------------------------------------------------------------------------
6 132,597 147,526 134,534
- ---------------------------------------------------------------------------------------------------------
7 132,597 156,378 134,534
- ---------------------------------------------------------------------------------------------------------
The account values for contract years 1 through 7 are based on hypothetical
rates of return of 5.00%, 10.00%, 12.00%, (20.00)%, 10.00%, 12.00% and 0.00%.
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.
6% ROLL-UP TO AGE 85
(1) At the end of contract year 1, and again at the end of contract years 4
through 7, the death benefit will be the enhanced death benefit.
(2) At the end of contract years 2 and 3, the death benefit will be the current
account value since it is higher than the current enhanced death benefit.
ANNUAL RATCHET TO AGE 85
(3) At the end of contract years 1 through 3, the enhanced death benefit is the
current account value.
(4) At the end of contract years 4 through 7, the enhanced death benefit is the
enhanced death benefit at the end of the prior year since it is equal to
or higher than the current account value.
GREATER OF THE 6% ROLL-UP TO AGE 85 OR THE ANNUAL RATCHET TO AGE 85
The enhanced death benefit under this option for each year shown would be the
greater of the amounts shown under the 6% roll-up to age 85 or the Annual
ratchet to age 85.
D-1 Appendix IV: Guaranteed enhanced death benefit example
Appendix V: Hypothetical Illustrations
- --------------------------------------------------------------------------------
ILLUSTRATION OF ACCOUNT VALUES, CASH VALUES AND CERTAIN GUARANTEED MINIMUM
BENEFITS
The following tables illustrate the changes in account value, cash value and
the values of the "greater of 6% Roll up to Age 85 or the Annual Ratchet to Age
85" guaranteed minimum death benefit, the Protection Plus benefit and the
guaranteed minimum income benefit under certain hypothetical circumstances for
an Accumulator Plus contract. The table illustrates the operation of a contract
based on a male, issue age 60, who makes a single$10,00 contribution and takes
no withdrawals. The amounts shown are for the beginning of each contract year
and assume that all of the account value is invested in portfolios that achieve
investment returns at constant gross annual rates of 0% and 6% (i.e., before
any investment management fees, 12b-1 fees or other expenses are deducted from
the underlying portfolio assets). After the deduction of the arithmetic average
of the investment management fees, 12b-1 fees and other expenses of all of the
underlying Portfolios (as described below), the corresponding net annual rates
of return would be (3.08)%, 2.92% for the Accumulator Plus Contract, at the 0%
and 6% gross annual rates, respectively. These net annual rates of return
reflect the trust and separate account level charges but they do not reflect
the charges we deduct from your account value annually for the guaranteed
minimum death benefit, Protection Plus benefit and the Living Benefit features,
as well as the annual administrative charge. If the net annual rates of return
did reflect these charges, the net annual rates of return would be lower;
however, the values shown in the following tables reflect all contract charges.
The values shown under "Lifetime Annual Living Benefit" reflect the lifetime
income that would be guaranteed if the Living Benefit is selected at that
contract anniversary. An "N/A" in these columns indicates that the benefit is
not exercisable in that year. A "0" under any of the Death Benefit and/or
"Lifetime Annual Living Benefit" columns indicates that the contract has
terminated due to insufficient account value and, consequently, the guaranteed
benefit has no value.
With respect to fees and expenses deducted from assets of the underlying
portfolios, the amounts shown in all tables reflect (1) investment management
fees equivalent to an effective annual rate of 0.68%, and (2) an assumed
average asset charge for all other expenses of the underlying portfolios
equivalent to an effective annual rate of 0.85% and (3) 12b-1 fees equivalent
to an effective annual rate of 0.25%. These rates are the arithmetic average
for all portfolios that are available as investment options. In other words,
they are based on the hypothetical assumption that account values are allocated
equally among the variable investment options. The actual rates associated with
any contract will vary depending upon the actual allocation of contract values
among the investment options. These rates do not reflect expense limitation
arrangements in effect with respect to certain of the underlying portfolios as
described in the footnotes to the fee table for the underlying portfolios in
"Fee Table" earlier in this Prospectus. With these arrangements, the charges
shown above would be lower. This would result in higher values than those shown
in the following tables.
Because your circumstances will no doubt differ from those in the illustrations
that follow, values under your contract will differ, in most cases
substantially. Upon request, we will furnish you with a personalized
illustration.
Appendix V: Hypothetical Illustrations E-1
Variable Deferred Annuity
Accumulator Plus
$100,000 Single Contribution and No Withdrawals
Male, Issue Age 60
Benefits:
Greater of 6% Roll-Up or the Annual Ratchet to Age 85 Guaranteed Minimum
Death Benefit
Protection Plus
Guaranteed Minimum Income Benefit
Greater of 6%
Roll up
to age 85 or the
Annual
Ratchet to age 85
Guaranteed
Minimum Death
Account Value Cash Value Benefit
------------------- ------------------ -------------------
Age Contract Year 0% 6% 0% 6% 0% 6%
- ----- -------------- --------- --------- -------- --------- --------- ---------
60 1 104,000 104,000 96,000 96,000 104,000 104,000
61 2 99,121 105,339 91,121 97,339 110,240 110,240
62 3 94,330 106,633 87,330 99,633 116,854 116,854
63 4 89,618 107,877 82,618 100,877 123,866 123,866
64 5 84,978 109,063 78,978 103,063 131,298 131,298
65 6 80,402 110,184 75,402 105,184 139,175 139,175
66 7 75,883 111,234 71,883 107,234 147,526 147,526
67 8 71,412 112,205 68,412 109,205 156,378 156,378
68 9 66,981 113,088 66,981 113,088 165,760 165,760
69 10 62,582 113,875 62,582 113,875 175,706 175,706
74 15 40,717 115,993 40,717 115,993 235,134 235,134
79 20 18,267 113,925 18,267 113,925 314,662 314,662
84 25 0 105,595 0 105,595 0 421,089
89 30 0 102,763 0 102,763 0 446,355
94 35 0 102,512 0 102,512 0 446,355
95 36 0 102,458 0 102,458 0 446,355
Lifetime Annual
Guaranteed Minimum Income Benefit
Total Death Benefit ------------------------------------
with Protection Guaranteed Hypothetical
Plus Income Income
------------------- ------------------ -----------------
Age 0% 6% 0% 6% 0% 6%
- ----- --------- --------- --------- -------- --------- -------
60 104,000 104,000 N/A N/A N/A N/A
61 114,336 114,336 N/A N/A N/A N/A
62 123,596 123,596 N/A N/A N/A N/A
63 133,412 133,412 N/A N/A N/A N/A
64 143,817 143,817 N/A N/A N/A N/A
65 154,846 154,846 N/A N/A N/A N/A
66 166,536 166,536 N/A N/A N/A N/A
67 178,929 178,929 N/A N/A N/A N/A
68 192,064 192,064 N/A N/A N/A N/A
69 205,988 205,988 N/A N/A N/A N/A
74 289,188 289,188 14,837 14,837 14,837 14,837
79 400,527 400,527 21,208 21,208 21,208 21,208
84 0 514,506 0 36,214 0 36,214
89 0 539,771 N/A N/A N/A N/A
94 0 539,771 N/A N/A N/A N/A
95 0 539,771 N/A N/A N/A N/A
The hypothetical investment results are illustrative only and should not be
deemed a representation of past or future investment results. Actual investment
results may be more or less than those shown and will depend on a number of
factors, including investment allocations made by the owner. The account value,
cash value and guaranteed benefits for a contract would be different from the
ones shown if the actual gross rate of investment return averaged 0% or 6% over
a period of years, but also fluctuated above or below the average for
individual contract years. We can make no representation that these
hypothetical investment results can be achieved for any one year or continued
over any period of time. In fact, for any given period of time, the investment
results could be negative.
E-2 Appendix V: Hypothetical Illustrations
Statement of additional information
- --------------------------------------------------------------------------------
TABLE OF CONTENTS
Page
Tax Information 2
Unit Values 15
Equitable Life's Pending Name Change 15
Custodian and Independent Auditors 15
Distribution of the Contracts 15
Financial Statements 16
How to obtain an Equitable Accumulator(R) Plus(SM) Statement of Additional
Information for Separate Account No. 49
Send this request form to:
Equitable Accumulator(R) Plus(SM)
P.O. Box 1547
Secaucus, NJ 07096-1547
- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
Please send me an Equitable Accumulator(R) Plus(SM) SAI for Separate Account No.
49 dated May 1, 2004.
- --------------------------------------------------------------------------------
Name
- --------------------------------------------------------------------------------
Address
- --------------------------------------------------------------------------------
City State Zip
(SAI 10AMLF(05/03))
X00675/Plus '02 Series
EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES
SUPPLEMENT DATED MAY 1, 2004 TO PROSPECTUSES FOR:
o Income Manager Accumulator(R) o Equitable Accumulator(R) o Equitable Accumulator(R) Advisor(SM)
o Income Manager(R) Rollover IRA o Equitable Accumulator(R) Select(SM) o Equitable Accumulator(R) Elite(SM)
o Equitable Accumulator(R) (IRA, NQ, QP) o Equitable Accumulator(R) Select(SM) II o Equitable Accumulator(R) Elite(SM) II
o Equitable Accumulator(R) Plus(SM) o Equitable Accumulator(R) Express(SM)
- --------------------------------------------------------------------------------
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, 2004. 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 1547, Secaucus, NJ 07096-1547, or calling (800)
789-7771. 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 the following: (1) how to reach
us; (2) combination of certain investment options; (3) investment options; (4)
the Trusts' annual expenses and expense example; (5) tax information; (6)
updated information on Equitable Life; (7) information applicable only to
contracts with guaranteed interest option; (8) disruptive transfer activity;
(9) wire transmittals and electronic applications information; (10) certain
information about our business day; and (11) condensed financial information.
(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 CONTRIBUTIONS SENT BY REGULAR MAIL:
- --------------------------------------------------------------------------------
Equitable Accumulator(R)
P.O. Box 13014
Newark, NJ 07188-0014
- --------------------------------------------------------------------------------
FOR CONTRIBUTIONS SENT BY EXPRESS DELIVERY:
- --------------------------------------------------------------------------------
Equitable Accumulator(R)
c/o Bank One, N.A.
300 Harmon Meadow Boulevard, 3rd Floor
Attn: Box 13014
Secaucus, NJ 07094
- --------------------------------------------------------------------------------
FOR ALL OTHER COMMUNICATIONS (E.G., REQUESTS FOR TRANSFERS, WITHDRAWALS, OR
REQUIRED NOTICES) SENT BY REGULAR MAIL:
- --------------------------------------------------------------------------------
Equitable Accumulator(R)
P.O. Box 1547
Secaucus, NJ 07096-1547
- --------------------------------------------------------------------------------
FOR ALL OTHER COMMUNICATIONS (E.G., REQUESTS FOR RANSFERS, WITHDRAWALS, OR
REQUIRED NOTICES) SENT BY EXPRESS DELIVERY:
- --------------------------------------------------------------------------------
Equitable Accumulator(R)
200 Plaza Drive, 4th Floor
Secaucus, NJ 07094
- --------------------------------------------------------------------------------
REPORTS WE PROVIDE:
- --------------------------------------------------------------------------------
o written confirmation of financial transactions;
o statement of your contract values at the close of each calendar year and any
calendar quarter in which there was a financial transaction; and
o annual statement of your contract values as of the close of the contract
year, including notification of eligibility to exercise the guaranteed
minimum income benefit, if applicable.
- --------------------------------------------------------------------------------
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 investment
options;
o change your TOPS personal identification number (PIN) (not available through
EQAccess); and
X00691
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 1-888-909-7770. If you are a client with AXA
Advisors you may use EQAccess by visiting our web site at
http://www.axaonline.com and clicking on EQAccess. All other clients may access
EQAccess by visiting our other web site at http://www.equitable.com. 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 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
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" in your Prospectus).
- --------------------------------------------------------------------------------
CUSTOMER SERVICE REPRESENTATIVE:
- --------------------------------------------------------------------------------
You may also use our toll-free number (1-800-789-7771) to speak with one of our
customer service representatives. Our customer service representatives are
available on any business day from 8:30 a.m. until 5:30 p.m., Eastern Time.
(2) COMBINATION OF CERTAIN INVESTMENT OPTIONS
Interests in the AXA Premier VIP Technology investment option (the "surviving
option") of AXA Premier VIP Trust will replace interests in the EQ/Technology
investment option (the "replaced option") of EQ Advisors Trust, and this option
will no longer be available. At the time of the replacement, all the assets
that are in the replaced option are moved into the surviving option. After the
replacement, any allocation elections to the replaced option will then be
considered as allocation elections to the surviving option. The effective date
for the replacement of the EQ/Technology investment option will be on or about
May 14, 2004, subject to shareholder approval.
- --------------------------------------------------------------------------------
Variable investment options
- --------------------------------------------------------------------------------
o AXA Aggressive Allocation(1) o EQ/Bernstein Diversified Value
o AXA Conservative Allocation(1) o EQ/Calvert Socially Responsible
o AXA Conservative-Plus Allocation(1) o EQ/Capital Guardian International
o AXA Moderate Allocation(1) o EQ/Capital Guardian Research
o AXA Moderate-Plus Allocation(1) o EQ/Capital Guardian U.S. Equity
o AXA Premier VIP Aggressive Equity o EQ/Emerging Markets Equity
o AXA Premier VIP Core Bond o EQ/Equity 500 Index
o AXA Premier VIP Health Care o EQ/Evergreen Omega
o AXA Premier VIP High Yield o EQ/FI Mid Cap
o AXA Premier VIP International Equity o EQ/FI Small/Mid Cap Value
o AXA Premier VIP Large Cap Core o EQ/J.P. Morgan Core Bond
Equity o EQ/Janus Large Cap Growth
o AXA Premier VIP Large Cap Growth o EQ/Lazard Small Cap Value
o AXA Premier VIP Large Cap Value o EQ/Marsico Focus
o AXA Premier VIP Small/Mid Cap o EQ/Mercury Basic Value Equity
Growth o EQ/Mercury International Value
o AXA Premier VIP Small/Mid Cap Value o EQ/MFS Emerging Growth Companies
o AXA Premier VIP Technology o EQ/MFS Investors Trust
o EQ/Alliance Common Stock o EQ/Money Market
o EQ/Alliance Growth and Income o EQ/Putnam Growth & Income Value
o EQ/Alliance Intermediate Government o EQ/Putnam Voyager
Securities o EQ/Small Company Index
o EQ/Alliance International o EQ/Technology
o EQ/Alliance Premier Growth o Laudus Rosenberg VIT Value Long/
o EQ/Alliance Quality Bond Short Equity(2)(3)
o EQ/Alliance Small Cap Growth o U.S. Real Estate -- Class II(3)
- --------------------------------------------------------------------------------
(1) The "AXA Allocation" portfolios.
(2) Formerly named "AXA Rosenberg VIT Value Long/Short Equity."
(3) Not available in all contracts.
2
(3) INVESTMENT OPTIONS
Portfolios of the Trusts
You should note that some portfolios have objectives and strategies that are
substantially similar to those of certain retail funds that are purchased
directly rather than under a variable insurance product such as an
Accumulator(R) series variable annuity. These funds 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.
Equitable Life serves as the investment manager of the Portfolios of the EQ
Advisors Trust and the AXA Premier VIP Trust. 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. The
advisers for these Portfolios, listed in the chart below, are those who make the
investment decisions for each Portfolio. The chart also indicates the investment
manager for each of the other Portfolios. Not all of the Portfolios listed below
are available in all the contracts to which this supplement applies.
- ------------------------------------------------------------------------------------------------------------------------------------
AXA Premier VIP Trust
Portfolio Name Objective Adviser(s)
- ------------------------------------------------------------------------------------------------------------------------------------
AXA AGGRESSIVE ALLOCATION Seeks long-term capital appreciation. o Equitable Life
- ------------------------------------------------------------------------------------------------------------------------------------
AXA CONSERVATIVE ALLOCATION Seeks a high level of current income. o Equitable Life
- ------------------------------------------------------------------------------------------------------------------------------------
AXA CONSERVATIVE-PLUS Seeks current income and growth of capital, with a o Equitable Life
ALLOCATION greater emphasis on current income.
- ------------------------------------------------------------------------------------------------------------------------------------
AXA MODERATE ALLOCATION Seeks long-term capital appreciation and current income. o Equitable Life
- ------------------------------------------------------------------------------------------------------------------------------------
AXA MODERATE-PLUS Seeks long-term capital appreciation and current income, o Equitable Life
ALLOCATION with a greater emphasis on capital appreciation.
- ------------------------------------------------------------------------------------------------------------------------------------
AXA PREMIER VIP AGGRESSIVE Seeks long-term growth of capital. o Alliance Capital Management L.P.
EQUITY
o MFS Investment Management
o Marsico Capital Management, LLC
o Provident Investment Counsel, Inc.
- ------------------------------------------------------------------------------------------------------------------------------------
AXA PREMIER VIP CORE BOND Seeks a balance of high current income and capital o BlackRock Advisors, Inc.
appreciation, consistent with a prudent level of risk.
o Pacific Investment Management Company LLC
- ------------------------------------------------------------------------------------------------------------------------------------
AXA PREMIER VIP HEALTH CARE Seeks long-term growth of capital. o A I M Capital Management, Inc.
o RCM Capital Management LLC
o Wellington Management Company, LLP
- ------------------------------------------------------------------------------------------------------------------------------------
AXA PREMIER VIP HIGH YIELD Seeks high total return through a combination of current o Alliance Capital Management L.P.
income and capital appreciation.
o Pacific Investment Management Company LLC
- ------------------------------------------------------------------------------------------------------------------------------------
AXA PREMIER VIP Seeks long-term growth of capital. o Alliance Capital Management L.P., through
INTERNATIONAL EQUITY its Bernstein Investment Research and
Management Unit
o Bank of Ireland Asset Management (U.S.)
Limited
o Marsico Capital Management, LLC
- ------------------------------------------------------------------------------------------------------------------------------------
AXA PREMIER VIP LARGE CAP Seeks long-term growth of capital. o Alliance Capital Management L.P., through
CORE EQUITY its Bernstein Investment Research and
Management Unit
o Janus Capital Management LLC
o Thornburg Investment Management, Inc.
- ------------------------------------------------------------------------------------------------------------------------------------
3
Portfolios of the Trusts (continued)
- ------------------------------------------------------------------------------------------------------------------------------------
AXA Premier VIP Trust
Portfolio Name Objective Adviser(s)
- ------------------------------------------------------------------------------------------------------------------------------------
AXA PREMIER VIP LARGE CAP Seeks long-term growth of capital. o Alliance Capital Management L.P.
GROWTH
o RCM Capital Management LLC
o TCW Investment Management Company
- ------------------------------------------------------------------------------------------------------------------------------------
AXA PREMIER VIP LARGE CAP Seeks long-term growth of capital. o Alliance Capital Management L.P.
VALUE
o Institutional Capital Corporation
o MFS Investment Management
- ------------------------------------------------------------------------------------------------------------------------------------
AXA PREMIER VIP SMALL/MID Seeks long-term growth of capital. o Alliance Capital Management L.P.
CAP GROWTH
o Franklin Advisers, Inc.
o Provident Investment Counsel, Inc.
- ------------------------------------------------------------------------------------------------------------------------------------
AXA PREMIER VIP SMALL/MID Seeks long-term growth of capital. o AXA Rosenberg Investment Management LLC
CAP VALUE
o TCW Investment Management Company
o Wellington Management Company, LLP
- ------------------------------------------------------------------------------------------------------------------------------------
AXA PREMIER VIP TECHNOLOGY Seeks long-term growth of capital. o Firsthand Capital Management, Inc.
o RCM Capital Management LLC
o Wellington Management Company, LLP
- ------------------------------------------------------------------------------------------------------------------------------------
EQ Advisors Trust
Portfolio Name Objective Adviser(s)
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/ALLIANCE COMMON STOCK Seeks to achieve long-term growth of capital. o Alliance Capital Management L.P.
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/ALLIANCE GROWTH AND Seeks to provide a high total return. o Alliance Capital Management L.P.
INCOME
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/ALLIANCE INTERMEDIATE Seeks to achieve high current income consistent with o Alliance Capital Management L.P.
GOVERNMENT SECURITIES relative stability of principal.
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/ALLIANCE INTERNATIONAL Seeks to achieve long-term growth of capital. o Alliance Capital Management L.P.
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/ALLIANCE PREMIER GROWTH Seeks to achieve long-term growth of capital. o Alliance Capital Management L.P.
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/ALLIANCE QUALITY BOND Seeks to achieve high current income consistent with o Alliance Capital Management L.P.
moderate risk to capital.
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/ALLIANCE SMALL CAP Seeks to achieve long-term growth of capital. o Alliance Capital Management L.P.
GROWTH
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/BERNSTEIN DIVERSIFIED Seeks capital appreciation. o Alliance Capital Management L.P.,
VALUE through its Bernstein Investment Research
and Management Unit
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/CALVERT SOCIALLY Seeks long-term capital appreciation. o Calvert Asset Management Company, Inc.
RESPONSIBLE and Brown Capital Management, Inc.
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/CAPITAL GUARDIAN To achieve long-term growth of capital. o Capital Guardian Trust Company
INTERNATIONAL
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/CAPITAL GUARDIAN Seeks to achieve long-term growth of capital. o Capital Guardian Trust Company
RESEARCH
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/CAPITAL GUARDIAN U.S. Seeks to achieve long-term growth of capital. o Capital Guardian Trust Company
EQUITY
- ------------------------------------------------------------------------------------------------------------------------------------
4
Portfolios of the Trusts (continued)
- ------------------------------------------------------------------------------------------------------------------------------------
EQ Advisors Trust
Portfolio Name Objective Adviser(s)
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/EMERGING MARKETS EQUITY Seeks long-term capital appreciation. o Morgan Stanley Investment Management,
Inc.
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/EQUITY 500 INDEX Seeks a total return before expenses that approximates o 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. o Evergreen Investment Management
Company, LLC
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/FI MID CAP Seeks long-term growth of capital. o Fidelity Management & Research Company
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/FI SMALL/MID CAP VALUE Seeks long-term capital appreciation. o Fidelity Management & Research Company
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/J.P. MORGAN CORE BOND Seeks to provide a high total return consistent with o J.P. Morgan Investment Management Inc.
moderate risk to capital and maintenance of liquidity.
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/JANUS LARGE CAP GROWTH Seeks long-term growth of capital. o Janus Capital Management LLC
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/LAZARD SMALL CAP VALUE Seeks capital appreciation. o Lazard Asset Management, LLC
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/MARSICO FOCUS Seeks long-term growth of capital. o Marsico Capital Management, LLC
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/MERCURY BASIC VALUE Seeks capital appreciation and secondarily, income. o Mercury Advisors
EQUITY
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/MERCURY INTERNATIONAL Seeks capital appreciation. o Merrill Lynch Investment Managers
VALUE International Limited
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/MFS EMERGING GROWTH Seeks to provide long-term capital growth. o MFS Investment Management
COMPANIES
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/MFS INVESTORS TRUST Seeks long-term growth of capital with secondary objec- o MFS Investment Management
tive to seek reasonable current income.
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/MONEY MARKET Seeks to obtain a high level of current income, preserve o Alliance Capital Management L.P.
its assets and maintain liquidity.
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/PUTNAM GROWTH & INCOME Seeks capital growth. Current income is a secondary o Putnam Investment Management, LLC
VALUE objective.
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/PUTNAM VOYAGER Seeks long-term growth of capital and any increased o Putnam Investment Management, LLC
income that results from this growth.
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/SMALL COMPANY INDEX Seeks to replicate as closely as possible (before the o Alliance Capital Management L.P.
deduction of portfolio expenses) the total return of
the Russell 2000 Index.
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/TECHNOLOGY Seeks to achieve long-term growth of capital. o Firsthand Capital Management, Inc.
o RCM Capital Management LLC
o Wellington Management Company, LLP
- ------------------------------------------------------------------------------------------------------------------------------------
Barr Rosenberg Variable
Insurance Trust
Portfolio Name Objective Investment Manager/Adviser
- ------------------------------------------------------------------------------------------------------------------------------------
LAUDUS ROSENBERG VIT VALUE Seeks to increase the value of your investments in bull o Charles Schwab Investment Management,
LONG/SHORT EQUITY(1) markets and in bear markets through strategies that are Inc.
designed to limit exposure to general equity
market risk. o AXA Rosenberg Investment Management LLC
- ------------------------------------------------------------------------------------------------------------------------------------
5
Portfolios of the Trusts (continued)
- ------------------------------------------------------------------------------------------------------------------------------------
The Universal Institutional
Funds, Inc.
Portfolio Name Objective Investment Manager/Adviser
- ------------------------------------------------------------------------------------------------------------------------------------
U.S. REAL ESTATE -- Seeks to provide above average current income and o Van Kampen(3)
Class II(1)(2) long-term capital appreciation by investing primarily
in equity securities of companies in the U.S. real
estate industry, including real estate investment
trusts.
- -----------------------------------------------------------------------------------------------------------------------------------
(1) Not available in all contracts.
(2) 'Class II' Shares are defined in the current underlying Trust prospectus.
(3) Van Kampen is the name under which Morgan Stanley Investment Management
Inc. does business in certain situations.
You should consider the investment objectives, risks and charges and expenses
of the Portfolios carefully before investing. The prospectuses for the Trusts
contain this and other important information about the Portfolios. The
prospectuses should be read carefully before investing. In order to obtain
copies of Trust prospectuses that do not accompany this supplement, you may
call one of our customer service representatives at 1-800-789-7771.
(4) THE TRUSTS' ANNUAL EXPENSES AND EXPENSE EXAMPLE
The following table shows the lowest and highest total operating expenses
charged by any of the Portfolios that you will pay periodically during the time
that you own the contract. These fees and expenses are reflected in the
Portfolio's net asset value each day. Therefore, they reduce the investment
return of the Portfolio and the related variable investment option. Actual fees
and expenses are likely to fluctuate from year to year. More detail concerning
each Portfolio's fees and expenses is contained in the Trust prospectus for the
Portfolio.
This table shows the fees and expenses for 2003 as an annual percentage of each
Portfolio's daily average net assets.
- --------------------------------------------------------------------------------
Manage-
ment 12b-1 Other
Portfolio Name Fees(2) Fees(3) Expenses(4)
- --------------------------------------------------------------------------------
AXA PREMIER VIP TRUST:
- --------------------------------------------------------------------------------
AXA Aggressive Allocation 0.10% 0.25% 5.91%
AXA Conservative Allocation 0.10% 0.25% 9.04%
AXA Conservative-Plus Allocation 0.10% 0.25% 4.13%
AXA Moderate Allocation 0.10% 0.25% 0.39%
AXA Moderate-Plus Allocation 0.10% 0.25% 1.77%
AXA Premier VIP Aggressive Equity 0.62% 0.25% 0.15%
AXA Premier VIP Core Bond 0.60% 0.25% 0.26%
AXA Premier VIP Health Care 1.20% 0.25% 0.48%
AXA Premier VIP High Yield 0.59% 0.25% 0.16%
AXA Premier VIP International Equity 1.05% 0.25% 0.73%
AXA Premier VIP Large Cap Core Equity 0.90% 0.25% 0.52%
AXA Premier VIP Large Cap Growth 0.90% 0.25% 0.43%
AXA Premier VIP Large Cap Value 0.90% 0.25% 0.43%
AXA Premier VIP Small/Mid Cap Growth 1.10% 0.25% 0.35%
AXA Premier VIP Small/Mid Cap Value 1.10% 0.25% 0.31%
AXA Premier VIP Technology 1.20% 0.25% 0.83%
- --------------------------------------------------------------------------------
EQ ADVISORS TRUST:
- --------------------------------------------------------------------------------
EQ/Alliance Common Stock 0.48% 0.25% 0.06%
EQ/Alliance Growth and Income 0.57% 0.25% 0.06%
EQ/Alliance Intermediate Government Securities 0.49% 0.25% 0.08%
EQ/Alliance International 0.74% 0.25% 0.13%
EQ/Alliance Premier Growth 0.90% 0.25% 0.05%
EQ/Alliance Quality Bond 0.52% 0.25% 0.06%
EQ/Alliance Small Cap Growth 0.75% 0.25% 0.07%
EQ/Bernstein Diversified Value 0.64% 0.25% 0.06%
EQ/Calvert Socially Responsible 0.65% 0.25% 0.55%
EQ/Capital Guardian International 0.85% 0.25% 0.21%
EQ/Capital Guardian Research 0.65% 0.25% 0.07%
- --------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------------
Total Net Total
Annual Fee Waiv- Annual
Underlying Expenses ers and/or Expenses
Portfolio (Before Expense After
Fees and Expense Reimburse- Expense
Portfolio Name Expenses(5) Limitation) ments(6) Limitations
- -----------------------------------------------------------------------------------------------------
AXA PREMIER VIP TRUST:
- -----------------------------------------------------------------------------------------------------
AXA Aggressive Allocation 1.08% 7.34% (5.98)% 1.36%
AXA Conservative Allocation 0.84% 10.23% (9.13)% 1.10%
AXA Conservative-Plus Allocation 0.88% 5.36% (4.21)% 1.15%
AXA Moderate Allocation 0.86% 1.60% (0.43)% 1.17%
AXA Moderate-Plus Allocation 1.13% 3.25% (1.87)% 1.38%
AXA Premier VIP Aggressive Equity -- 1.02% -- 1.02%
AXA Premier VIP Core Bond -- 1.11% (0.16)% 0.95%
AXA Premier VIP Health Care -- 1.93% (0.08)% 1.85%
AXA Premier VIP High Yield -- 1.00% -- 1.00%
AXA Premier VIP International Equity -- 2.03% (0.23)% 1.80%
AXA Premier VIP Large Cap Core Equity -- 1.67% (0.32)% 1.35%
AXA Premier VIP Large Cap Growth -- 1.58% (0.23)% 1.35%
AXA Premier VIP Large Cap Value -- 1.58% (0.23)% 1.35%
AXA Premier VIP Small/Mid Cap Growth -- 1.70% (0.10)% 1.60%
AXA Premier VIP Small/Mid Cap Value -- 1.66% (0.06)% 1.60%
AXA Premier VIP Technology -- 2.28% (0.43)% 1.85%
- -----------------------------------------------------------------------------------------------------
EQ ADVISORS TRUST:
- -----------------------------------------------------------------------------------------------------
EQ/Alliance Common Stock -- 0.79% -- 0.79%
EQ/Alliance Growth and Income -- 0.88% -- 0.88%
EQ/Alliance Intermediate Government Securities -- 0.82% -- 0.82%
EQ/Alliance International -- 1.12% (0.02)% 1.10%
EQ/Alliance Premier Growth -- 1.20% (0.04)% 1.16%
EQ/Alliance Quality Bond -- 0.83% -- 0.83%
EQ/Alliance Small Cap Growth -- 1.07% -- 1.07%
EQ/Bernstein Diversified Value -- 0.95% 0.00% 0.95%
EQ/Calvert Socially Responsible -- 1.45% (0.40)% 1.05%
EQ/Capital Guardian International -- 1.31% (0.11)% 1.20%
EQ/Capital Guardian Research -- 0.97% (0.02)% 0.95%
- -----------------------------------------------------------------------------------------------------
6
- --------------------------------------------------------------------------------
Manage-
ment 12b-1 Other
Portfolio Name Fees(2) Fees(3) Expenses(4)
- --------------------------------------------------------------------------------
EQ ADVISORS TRUST:
- --------------------------------------------------------------------------------
EQ/Capital Guardian U.S. Equity 0.65% 0.25% 0.07%
EQ/Emerging Markets Equity 1.15% 0.25% 0.40%
EQ/Equity 500 Index 0.25% 0.25% 0.06%
EQ/Evergreen Omega 0.65% 0.25% 0.25%
EQ/FI Mid Cap 0.70% 0.25% 0.08%
EQ/FI Small/Mid Cap Value 0.75% 0.25% 0.10%
EQ/Janus Large Cap Growth 0.90% 0.25% 0.09%
EQ/J.P. Morgan Core Bond 0.44% 0.25% 0.08%
EQ/Lazard Small Cap Value 0.75% 0.25% 0.10%
EQ/Marsico Focus 0.90% 0.25% 0.07%
EQ/Mercury Basic Value Equity 0.60% 0.25% 0.07%
EQ/Mercury International Value 0.85% 0.25% 0.16%
EQ/MFS Emerging Growth Companies 0.65% 0.25% 0.07%
EQ/MFS Investors Trust 0.60% 0.25% 0.11%
EQ/Money Market 0.33% 0.25% 0.06%
EQ/Putnam Growth & Income Value 0.60% 0.25% 0.10%
EQ/Putnam Voyager 0.65% 0.25% 0.13%
EQ/Small Company Index 0.25% 0.25% 0.35%
EQ/Technology 0.90% 0.25% 0.09%
- --------------------------------------------------------------------------------
BARR ROSENBERG VARIABLE INSURANCE TRUST:
- --------------------------------------------------------------------------------
Laudus Rosenberg VIT Value Long/Short Equity 1.50% 0.25% 5.80%
- --------------------------------------------------------------------------------
THE UNIVERSAL INSTITUTIONAL FUNDS, INC.:
- --------------------------------------------------------------------------------
U.S. Real Estate - Class II 0.80% 0.35% 0.31%
- --------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------------
Total Net Total
Annual Fee Waiv- Annual
Underlying Expenses ers and/or Expenses
Portfolio (Before Expense After
Fees and Expense Reimburse- Expense
Portfolio Name Expenses(5) Limitation) ments(6) Limitations
- -----------------------------------------------------------------------------------------------------
EQ ADVISORS TRUST:
- -----------------------------------------------------------------------------------------------------
EQ/Capital Guardian U.S. Equity -- 0.97% (0.02)% 0.95%
EQ/Emerging Markets Equity -- 1.80% 0.00% 1.80%
EQ/Equity 500 Index -- 0.56% -- 0.56%
EQ/Evergreen Omega -- 1.15% (0.20)% 0.95%
EQ/FI Mid Cap -- 1.03% (0.03)% 1.00%
EQ/FI Small/Mid Cap Value -- 1.10% 0.00% 1.10%
EQ/Janus Large Cap Growth -- 1.24% (0.09)% 1.15%
EQ/J.P. Morgan Core Bond -- 0.77% 0.00% 0.77%
EQ/Lazard Small Cap Value -- 1.10% 0.00% 1.10%
EQ/Marsico Focus -- 1.22% (0.07)% 1.15%
EQ/Mercury Basic Value Equity -- 0.92% 0.00% 0.92%
EQ/Mercury International Value -- 1.26% (0.01)% 1.25%
EQ/MFS Emerging Growth Companies -- 0.97% -- 0.97%
EQ/MFS Investors Trust -- 0.96% (0.01)% 0.95%
EQ/Money Market -- 0.64% -- 0.64%
EQ/Putnam Growth & Income Value -- 0.95% 0.00% 0.95%
EQ/Putnam Voyager -- 1.03% (0.08)% 0.95%
EQ/Small Company Index -- 0.85% 0.00% 0.85%
EQ/Technology -- 1.24% (0.09)% 1.15%
- -----------------------------------------------------------------------------------------------------
BARR ROSENBERG VARIABLE INSURANCE TRUST:
- -----------------------------------------------------------------------------------------------------
Laudus Rosenberg VIT Value Long/Short Equity -- 7.55% (4.57)% 2.98%
- -----------------------------------------------------------------------------------------------------
THE UNIVERSAL INSTITUTIONAL FUNDS, INC.:
- -----------------------------------------------------------------------------------------------------
U.S. Real Estate - Class II -- 1.46% (0.11)% 1.35%
- -----------------------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------------
Portfolio operating expenses expressed as an annual percentage of daily net assets
- -----------------------------------------------------------------------------------------------------
Total Annual Portfolio Operating Expenses for 2003 (expenses that are deducted Lowest Highest
from Portfolio assets including management fees, 12b-1 fees, service fees, and/or --- -----
other expenses)(1) .56% 10.23%
(1) "Total Annual Portfolio Operating Expenses" are based, in part, on
estimated amounts for options added during the fiscal year 2003 and for the
underlying portfolios.
(2) The management fees for each Portfolio cannot be increased without a vote
of that Portfolio's Shareholders. See Footnote (6) for any expense
limitation agreement information.
(3) 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) Other expenses shown are those incurred in 2003. The amounts shown as
"Other Expenses" will fluctuate from year to year depending on actual
expenses. See footnote (6) for any expense limitation agreement
information.
(5) The AXA Allocation variable investment options invest in corresponding
portfolios of the AXA Premier VIP Trust. Each AXA Allocation portfolio in
turn invests in shares of other portfolios of the EQ Advisors Trust and AXA
Premier VIP Trust ("the underlying portfolios"). Amounts shown reflect each
AXA Allocation portfolios's pro rata share of the fees and expenses of the
various underlying portfolios in which it invests. The fees and expenses
have been estimated based on the respective weighted investment allocations
as of 12/31/03. A "-" indicates that the listed portfolio does not invest
in underlying portfolios, i.e., it is not an allocation portfolio.
(6) The amounts shown reflect any fee waivers and/or expense reimbursements
that applied to each Portfolio. A "-" indicates that there is no expense
limitation in effect. "0.00%" indicates that the expense limitation
arrangement did not result in a fee waiver or reimbursement. Equi table
Life, the investment manager of AXA Premier VIP Trust and EQ Advisors
Trust, has entered into Expense Limitation Agreements with respect to
certain Portfolios, which are effective through April 30, 2005. Under these
agreements Equitable Life has agreed to waive or limit its fees and assume
other expenses of certain Portfolios, if necessary, in an amount that
limits each affected Portfolio's total Annual Expenses (exclusive of
interest, taxes, brokerage commissions, capitalized expenditures and
extraordinary expenses) to not more than specified amounts. 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
7
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.
Morgan Stanley Investment Management Inc., which does business in certain
instances as "Van Kampen," is the manager of The Universal Institutional
Funds, Inc. -- U.S. Real Estate Portfolio -- Class II, and has voluntarily
agreed to reduce its management fee and/or reimburse the Portfolio so that
total annual operating expenses of the Portfolio (exclusive of investment
related expenses, such as foreign country tax expense and interest expense
on amounts borrowed) are not more than specified amounts. Van Kampen
reserves the right to terminate any waiver and/or reimbursement at any time
without notice. Charles Schwab Investment Management, Inc. the manager of
the Barr Rosenberg Variable Insurance Trust -- Laudus Rosenberg VIT Value
Long/Short Equity Portfolio, has voluntarily agreed to reimburse expenses
in excess of specified amounts. See the prospectus for each applicable
underlying Trust for more information about the arrangements. In addition,
a portion of the brokerage commissions of certain portfolios of EQ Advisors
Trust and AXA Premier VIP Trust is used to reduce the applicable
Portfolio's expenses. If the above table reflected both the expense
limitation arrangements plus the portion of the brokerage commissions used
to reduce portfolio expenses, the net expenses would be as shown in the
table below:
- --------------------------------------------------
Portfolio Name
- --------------------------------------------------
AXA Aggressive Allocation 0.95%
- --------------------------------------------------
AXA Conservative Allocation 0.73%
- --------------------------------------------------
AXA Conservative-Plus Allocation 0.78%
- --------------------------------------------------
AXA Moderate Allocation 0.79%
- --------------------------------------------------
AXA Moderate-Plus Allocation 0.99%
- --------------------------------------------------
AXA Premier VIP Aggressive Equity 0.95%
- --------------------------------------------------
AXA Premier VIP Health Care 1.84%
- --------------------------------------------------
AXA Premier VIP International Equity 1.73%
- --------------------------------------------------
AXA Premier VIP Large Cap Core Equity 1.32%
- --------------------------------------------------
AXA Premier VIP Large Cap Growth 1.32%
- --------------------------------------------------
AXA Premier VIP Large Cap Value 1.28%
- --------------------------------------------------
AXA Premier VIP Small/Mid Cap Growth 1.46%
- --------------------------------------------------
AXA Premier VIP Small/Mid Cap Value 1.52%
- --------------------------------------------------
AXA Premier VIP Technology 1.70%
- --------------------------------------------------
EQ/Alliance Common Stock 0.77%
- --------------------------------------------------
EQ/Alliance Growth and Income 0.85%
- --------------------------------------------------
EQ/Alliance Premier Growth 1.15%
- --------------------------------------------------
EQ/Alliance Small Cap Growth 1.03%
- --------------------------------------------------
EQ/Calvert Socially Responsible 1.00%
- --------------------------------------------------
EQ/Capital Guardian International 1.18%
- --------------------------------------------------
EQ/Capital Guardian Research 0.93%
- --------------------------------------------------
EQ/Capital Guardian U.S. Equity 0.93%
- --------------------------------------------------
EQ/Emerging Markets Equity 1.78%
- --------------------------------------------------
EQ/Evergreen Omega 0.84%
- --------------------------------------------------
EQ/FI Mid Cap 0.88%
- --------------------------------------------------
EQ/FI Small/Mid Cap Value 1.04%
- --------------------------------------------------
EQ/Lazard Small Cap Value 1.00%
- --------------------------------------------------
EQ/Marsico Focus 1.10%
- --------------------------------------------------
EQ/Mercury Basic Value Equity 0.91%
- --------------------------------------------------
EQ/Mercury International Value 1.18%
- --------------------------------------------------
EQ/MFS Emerging Growth Companies 0.96%
- --------------------------------------------------
EQ/MFS Investors Trust 0.94%
- --------------------------------------------------
EQ/Putnam Growth & Income Value 0.93%
- --------------------------------------------------
EQ/Putnam Voyager 0.93%
- --------------------------------------------------
EQ/Technology 1.01%
- --------------------------------------------------
EXAMPLE
This example is intended to help you compare the cost of investing in the
contract with the cost of investing in other variable annuity contracts. These
costs include contract owner transaction expenses, contract fees, separate
account annual expenses, and underlying trust fees and expenses.
The example below shows the expenses that a hypothetical contract owner (who
has elected the Guaranteed Minimum Income Benefit with the enhanced death
benefit that provides for the greater of the 6% Roll-up or the Annual Ratchet
to age 85 and Protection Plus) would pay in the situations illustrated. 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 $2.10 per $10,000. Some of these features may
not be available or may be different under your contract. Some of these charges
may not be applicable under your contract.
The fixed maturity options, guaranteed interest option and the account for
special dollar cost averaging are not covered by the fee table and examples.
However, the annual administrative charge, the charge if you elect a Variable
Immediate Annuity payout option, the charge for any
8
optional benefits and the withdrawal charge do apply to the fixed maturity
options, guaranteed interest option and the account for special dollar cost
averaging. 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.
Some of these investment options and charges may not be applicable under your
contract.
The example assumes that you invest $10,000 in the contract for the time
periods indicated. The example also assumes that your investment has a 5%
return each year. This example 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 example
is not an estimate or guarantee of future investment performance. Although your
actual costs may be higher or lower, based on these assumptions, your costs
would be:
9
- ------------------------------------------------------------------------------------------------------------
If you surrender your contract at the end
of the applicable time period
-----------------------------------------------------------
Portfolio Name 1 year 3 years 5 years 10 years
- ------------------------------------------------------------------------------------------------------------
AXA PREMIER VIP TRUST:
- ------------------------------------------------------------------------------------------------------------
AXA Aggressive Allocation $ 1,938.01 $ 3,961.13 $ 5,796.47 $ 9,326.64
AXA Conservative Allocation $ 2,253.10 $ 4,736.29 $ 6,842.80 $ 10,461.71
AXA Conservative-Plus Allocation $ 1,721.56 $ 3,397.79 $ 4,989.19 $ 8,279.35
AXA Moderate Allocation $ 1,312.50 $ 2,258.97 $ 3,241.25 $ 5,521.47
AXA Moderate-Plus Allocation $ 1,491.38 $ 2,770.44 $ 4,045.17 $ 6,868.22
AXA Premier VIP Aggressive Equity $ 1,251.23 $ 2,073.57 $ 2,942.34 $ 5,012.96
AXA Premier VIP Core Bond $ 1,260.68 $ 2,102.26 $ 2,988.89 $ 5,093.46
AXA Premier VIP Health Care $ 1,346.96 $ 2,361.65 $ 3,405.07 $ 5,798.30
AXA Premier VIP High Yield $ 1,249.13 $ 2,067.20 $ 2,931.98 $ 4,994.97
AXA Premier VIP International Equity $ 1,357.88 $ 2,392.97 $ 3,454.79 $ 5,884.68
AXA Premier VIP Large Cap Core Equity $ 1,319.47 $ 2,279.90 $ 3,274.74 $ 5,577.28
AXA Premier VIP Large Cap Growth $ 1,310.02 $ 2,251.50 $ 3,229.28 $ 5,501.47
AXA Premier VIP Large Cap Value $ 1,310.02 $ 2,251.50 $ 3,229.28 $ 5,501.47
AXA Premier VIP Small/Mid Cap Growth $ 1,322.62 $ 2,289.36 $ 3,289.86 $ 5,602.39
AXA Premier VIP Small/Mid Cap Value $ 1,318.42 $ 2,276.75 $ 3,269.70 $ 5,568.89
AXA Premier VIP Technology $ 1,385.17 $ 2,470.97 $ 3,578.14 $ 6,096.56
- ------------------------------------------------------------------------------------------------------------
EQ ADVISORS TRUST:
- ------------------------------------------------------------------------------------------------------------
EQ/Alliance Common Stock $ 1,227.08 $ 2,000.14 $ 2,822.68 $ 4,803.72
EQ/Alliance Growth and Income $ 1,236.53 $ 2,028.92 $ 2,869.65 $ 4,886.20
EQ/Alliance Intermediate Government Securities $ 1,230.23 $ 2,009.74 $ 2,838.36 $ 4,831.30
EQ/Alliance International $ 1,261.73 $ 2,105.45 $ 2,994.06 $ 5,102.35
EQ/Alliance Premier Growth $ 1,270.13 $ 2,130.96 $ 3,035.31 $ 5,173.19
EQ/Alliance Quality Bond $ 1,231.28 $ 2,012.94 $ 2,843.58 $ 4,840.47
EQ/Alliance Small Cap Growth $ 1,256.48 $ 2,089.49 $ 2,968.20 $ 5,057.78
EQ/Bernstein Diversified Value $ 1,243.88 $ 2,051.26 $ 2,906.05 $ 4,949.82
EQ/Calvert Socially Responsible $ 1,296.37 $ 2,210.37 $ 3,163.29 $ 5,390.66
EQ/Capital Guardian International $ 1,281.67 $ 2,165.95 $ 3,091.79 $ 5,269.59
EQ/Capital Guardian Research $ 1,245.98 $ 2,057.64 $ 2,916.43 $ 4,967.91
EQ/Capital Guardian U.S. Equity $ 1,245.98 $ 2,057.64 $ 2,916.43 $ 4,967.91
EQ/Emerging Markets Equity $ 1,333.12 $ 2,320.83 $ 3,340.09 $ 5,685.49
EQ/Equity 500 Index $ 1,202.94 $ 1,926.36 $ 2,701.81 $ 4,589.30
EQ/Evergreen Omega $ 1,264.88 $ 2,115.02 $ 3,009.54 $ 5,128.99
EQ/FI Mid Cap $ 1,252.28 $ 2,076.75 $ 2,947.52 $ 5,021.94
EQ/FI Small/Mid Cap Value $ 1,259.63 $ 2,099.07 $ 2,983.72 $ 5,084.55
EQ/J.P. Morgan Core Bond $ 1,224.98 $ 1,993.74 $ 2,812.22 $ 4,785.28
EQ/Janus Large Cap Growth $ 1,274.33 $ 2,143.69 $ 3,055.88 $ 5,208.37
EQ/Lazard Small Cap Value $ 1,259.63 $ 2,099.07 $ 2,983.72 $ 5,084.55
EQ/Marsico Focus $ 1,272.23 $ 2,137.33 $ 3,045.60 $ 5,190.80
EQ/Mercury Basic Value Equity $ 1,240.73 $ 2,041.69 $ 2,890.46 $ 4,922.61
EQ/Mercury International Value $ 1,276.43 $ 2,150.05 $ 3,066.15 $ 5,225.91
EQ/MFS Emerging Growth Companies $ 1,245.98 $ 2,057.64 $ 2,916.43 $ 4,967.91
- -----------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------
If you annuitize at the end
of the applicable time period
-----------------------------------------------------------
Portfolio Name 1 year 3 years 5 years 10 years
- ------------------------------------------------------------------------------------------------------------
AXA PREMIER VIP TRUST:
- ------------------------------------------------------------------------------------------------------------
AXA Aggressive Allocation $ 1,488.01 $ 3,611.13 $ 5,546.47 $ 9,676.64
AXA Conservative Allocation $ 1,803.10 $ 4,386.29 $ 6,592.80 $ 10,811.71
AXA Conservative-Plus Allocation $ 1,271.56 $ 3,047.79 $ 4,739.19 $ 8,629.35
AXA Moderate Allocation $ 867.25 $ 1,923.76 $ 3,010.77 $ 5,871.47
AXA Moderate-Plus Allocation $ 1,041.38 $ 2,420.44 $ 3,795.17 $ 7,218.22
AXA Premier VIP Aggressive Equity $ 805.97 $ 1,746.28 $ 2,726.09 $ 5,362.96
AXA Premier VIP Core Bond $ 815.42 $ 1,773.79 $ 2,770.46 $ 5,443.46
AXA Premier VIP Health Care $ 901.51 $ 2,022.03 $ 3,166.76 $ 6,148.30
AXA Premier VIP High Yield $ 803.87 $ 1,740.15 $ 2,716.20 $ 5,344.97
AXA Premier VIP International Equity $ 912.01 $ 2,052.00 $ 3,214.10 $ 6,234.68
AXA Premier VIP Large Cap Core Equity $ 874.21 $ 1,943.80 $ 3,042.66 $ 5,927.28
AXA Premier VIP Large Cap Growth $ 864.76 $ 1,916.61 $ 2,999.37 $ 5,851.47
AXA Premier VIP Large Cap Value $ 864.76 $ 1,916.61 $ 2,999.37 $ 5,851.47
AXA Premier VIP Small/Mid Cap Growth $ 877.36 $ 1,952.85 $ 3,057.05 $ 5,952.39
AXA Premier VIP Small/Mid Cap Value $ 873.16 $ 1,940.78 $ 3,037.86 $ 5,918.89
AXA Premier VIP Technology $ 938.25 $ 2,126.65 $ 3,331.55 $ 6,446.56
- ------------------------------------------------------------------------------------------------------------
EQ ADVISORS TRUST:
- ------------------------------------------------------------------------------------------------------------
EQ/Alliance Common Stock $ 781.82 $ 1,675.72 $ 2,611.87 $ 5,153.72
EQ/Alliance Growth and Income $ 791.27 $ 1,703.37 $ 2,656.70 $ 5,236.20
EQ/Alliance Intermediate Government Securities $ 784.97 $ 1,684.94 $ 2,626.83 $ 5,181.30
EQ/Alliance International $ 816.47 $ 1,776.84 $ 2,775.38 $ 5,452.35
EQ/Alliance Premier Growth $ 824.87 $ 1,801.25 $ 2,814.67 $ 5,523.19
EQ/Alliance Quality Bond $ 786.02 $ 1,688.01 $ 2,631.82 $ 5,190.47
EQ/Alliance Small Cap Growth $ 811.22 $ 1,761.57 $ 2,750.76 $ 5,407.78
EQ/Bernstein Diversified Value $ 798.62 $ 1,724.84 $ 2,691.45 $ 5,299.82
EQ/Calvert Socially Responsible $ 851.11 $ 1,877.25 $ 2,936.53 $ 5,740.66
EQ/Capital Guardian International $ 836.42 $ 1,834.74 $ 2,868.45 $ 5,619.59
EQ/Capital Guardian Research $ 800.72 $ 1,730.97 $ 2,701.35 $ 5,317.91
EQ/Capital Guardian U.S. Equity $ 800.72 $ 1,730.97 $ 2,701.35 $ 5,317.91
EQ/Emerging Markets Equity $ 887.86 $ 1,982.97 $ 3,104.89 $ 6,035.49
EQ/Equity 500 Index $ 757.67 $ 1,604.81 $ 2,496.49 $ 4,939.30
EQ/Evergreen Omega $ 819.62 $ 1,786.00 $ 2,790.13 $ 5,478.99
EQ/FI Mid Cap $ 807.02 $ 1,749.34 $ 2,731.03 $ 5,371.94
EQ/FI Small/Mid Cap Value $ 814.37 $ 1,770.74 $ 2,765.54 $ 5,434.55
EQ/J.P. Morgan Core Bond $ 779.72 $ 1,669.57 $ 2,601.88 $ 5,135.28
EQ/Janus Large Cap Growth $ 829.07 $ 1,813.44 $ 2,834.26 $ 5,558.37
EQ/Lazard Small Cap Value $ 814.37 $ 1,770.74 $ 2,765.54 $ 5,434.55
EQ/Marsico Focus $ 826.97 $ 1,807.35 $ 2,824.47 $ 5,540.80
EQ/Mercury Basic Value Equity $ 795.47 $ 1,715.64 $ 2,676.57 $ 5,272.61
EQ/Mercury International Value $ 831.17 $ 1,819.53 $ 2,844.04 $ 5,575.91
EQ/MFS Emerging Growth Companies $ 800.72 $ 1,730.97 $ 2,701.35 $ 5,317.91
- -----------------------------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------------------
If you do not surrender your contract at the end
of the applicable time period
----------------------------------------------------------
Portfolio Name 1 year 3 years 5 years 10 years
- -----------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------
AXA PREMIER VIP TRUST:
- ------------------------------------------------------------------------------------------------------------
AXA Aggressive Allocation $ 1,138.01 $ 3,261.13 $ 5,196.47 $ 9,326.64
AXA Conservative Allocation $ 1,453.10 $ 4,036.29 $ 6,242.80 $ 10,461.71
AXA Conservative-Plus Allocation $ 921.56 $ 2,697.79 $ 4,389.19 $ 8,279.35
AXA Moderate Allocation $ 517.25 $ 1,573.76 $ 2,660.77 $ 5,521.47
AXA Moderate-Plus Allocation $ 691.38 $ 2,070.44 $ 3,445.17 $ 6,868.22
AXA Premier VIP Aggressive Equity $ 455.97 $ 1,396.28 $ 2,376.09 $ 5,012.96
AXA Premier VIP Core Bond $ 465.42 $ 1,423.79 $ 2,420.46 $ 5,093.46
AXA Premier VIP Health Care $ 551.51 $ 1,672.03 $ 2,816.76 $ 5,798.30
AXA Premier VIP High Yield $ 453.87 $ 1,390.15 $ 2,366.20 $ 4,994.97
AXA Premier VIP International Equity $ 562.01 $ 1,702.00 $ 2,864.10 $ 5,884.68
AXA Premier VIP Large Cap Core Equity $ 524.21 $ 1,593.80 $ 2,692.66 $ 5,577.28
AXA Premier VIP Large Cap Growth $ 514.76 $ 1,566.61 $ 2,649.37 $ 5,501.47
AXA Premier VIP Large Cap Value $ 514.76 $ 1,566.61 $ 2,649.37 $ 5,501.47
AXA Premier VIP Small/Mid Cap Growth $ 527.36 $ 1,602.85 $ 2,707.05 $ 5,602.39
AXA Premier VIP Small/Mid Cap Value $ 523.16 $ 1,590.78 $ 2,687.86 $ 5,568.89
AXA Premier VIP Technology $ 588.25 $ 1,776.65 $ 2,981.55 $ 6,096.56
- -----------------------------------------------------------------------------------------------------------
EQ ADVISORS TRUST:
- -----------------------------------------------------------------------------------------------------------
EQ/Alliance Common Stock $ 431.82 $ 1,325.72 $ 2,261.87 $ 4,803.72
EQ/Alliance Growth and Income $ 441.27 $ 1,353.37 $ 2,306.70 $ 4,886.20
EQ/Alliance Intermediate Government Securities $ 434.97 $ 1,334.94 $ 2,276.83 $ 4,831.30
EQ/Alliance International $ 466.47 $ 1,426.84 $ 2,425.38 $ 5,102.35
EQ/Alliance Premier Growth $ 474.87 $ 1,451.25 $ 2,464.67 $ 5,173.19
EQ/Alliance Quality Bond $ 436.02 $ 1,338.01 $ 2,281.82 $ 4,840.47
EQ/Alliance Small Cap Growth $ 461.22 $ 1,411.57 $ 2,400.76 $ 5,057.78
EQ/Bernstein Diversified Value $ 448.62 $ 1,374.84 $ 2,341.45 $ 4,949.82
EQ/Calvert Socially Responsible $ 501.11 $ 1,527.25 $ 2,586.53 $ 5,390.66
EQ/Capital Guardian International $ 486.42 $ 1,484.74 $ 2,518.45 $ 5,269.59
EQ/Capital Guardian Research $ 450.72 $ 1,380.97 $ 2,351.35 $ 4,967.91
EQ/Capital Guardian U.S. Equity $ 450.72 $ 1,380.97 $ 2,351.35 $ 4,967.91
EQ/Emerging Markets Equity $ 537.86 $ 1,632.97 $ 2,754.89 $ 5,685.49
EQ/Equity 500 Index $ 407.67 $ 1,254.81 $ 2,146.49 $ 4,589.30
EQ/Evergreen Omega $ 469.62 $ 1,436.00 $ 2,440.13 $ 5,128.99
EQ/FI Mid Cap $ 457.02 $ 1,399.34 $ 2,381.03 $ 5,021.94
EQ/FI Small/Mid Cap Value $ 464.37 $ 1,420.74 $ 2,415.54 $ 5,084.55
EQ/J.P. Morgan Core Bond $ 429.72 $ 1,319.57 $ 2,251.88 $ 4,785.28
EQ/Janus Large Cap Growth $ 479.07 $ 1,463.44 $ 2,484.26 $ 5,208.37
EQ/Lazard Small Cap Value $ 464.37 $ 1,420.74 $ 2,415.54 $ 5,084.55
EQ/Marsico Focus $ 476.97 $ 1,457.35 $ 2,474.47 $ 5,190.80
EQ/Mercury Basic Value Equity $ 445.47 $ 1,365.64 $ 2,326.57 $ 4,922.61
EQ/Mercury International Value $ 481.17 $ 1,469.53 $ 2,494.04 $ 5,225.91
EQ/MFS Emerging Growth Companies $ 450.72 $ 1,380.97 $ 2,351.35 $ 4,967.91
- -----------------------------------------------------------------------------------------------------------
10
- ------------------------------------------------------------------------------------------------------------
If you surrender your contract at the end
of the applicable time period
-----------------------------------------------------------
Portfolio Name 1 year 3 years 5 years 10 years
- ------------------------------------------------------------------------------------------------------------
EQ ADVISORS TRUST:
- ------------------------------------------------------------------------------------------------------------
EQ/MFS Investors Trust $ 1,244.93 $ 2,054.45 $ 2,911.24 $ 4,958.87
EQ/Money Market $ 1,211.34 $ 1,952.06 $ 2,743.99 $ 4,664.47
EQ/Putnam Growth & Income Value $ 1,243.88 $ 2,051.26 $ 2,906.05 $ 4,949.82
EQ/Putnam Voyager $ 1,252.28 $ 2,076.75 $ 2,947.52 $ 5,021.94
EQ/Small Company Index $ 1,233.38 $ 2,019.33 $ 2,854.01 $ 4,858.80
EQ/Technology $ 1,274.33 $ 2,143.69 $ 3,055.88 $ 5,208.37
- ------------------------------------------------------------------------------------------------------------
BARR ROSENBERG VARIABLE INSURANCE TRUST:
- ------------------------------------------------------------------------------------------------------------
Laudus Rosenberg VIT Value Long/Short Equity $ 1,960.56 $ 4,018.36 $ 5,876.30 $ 9,422.13
- ------------------------------------------------------------------------------------------------------------
THE UNIVERSAL INSTITUTIONAL FUNDS, INC.:
- ------------------------------------------------------------------------------------------------------------
U.S. Real Estate -- Class II $ 1,297.42 $ 2,213.54 $ 3,168.37 $ 5,399.24
- ------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------
If you annuitize at the end
of the applicable time period
-----------------------------------------------------------
Portfolio Name 1 year 3 years 5 years 10 years
- ------------------------------------------------------------------------------------------------------------
EQ ADVISORS TRUST:
- ------------------------------------------------------------------------------------------------------------
EQ/MFS Investors Trust $ 799.67 $ 1,727.90 $ 2,696.40 $ 5,308.87
EQ/Money Market $ 766.07 $ 1,629.51 $ 2,536.76 $ 5,014.47
EQ/Putnam Growth & Income Value $ 798.62 $ 1,724.84 $ 2,691.45 $ 5,299.82
EQ/Putnam Voyager $ 807.02 $ 1,749.34 $ 2,731.03 $ 5,371.94
EQ/Small Company Index $ 788.12 $ 1,694.16 $ 2,641.78 $ 5,208.80
EQ/Technology $ 829.07 $ 1,813.44 $ 2,834.26 $ 5,558.37
- ------------------------------------------------------------------------------------------------------------
BARR ROSENBERG VARIABLE INSURANCE TRUST:
- ------------------------------------------------------------------------------------------------------------
Laudus Rosenberg VIT Value Long/Short Equity $ 1,510.56 $ 3,668.36 $ 5,626.30 $ 9,772.13
- ------------------------------------------------------------------------------------------------------------
THE UNIVERSAL INSTITUTIONAL FUNDS, INC.:
- ------------------------------------------------------------------------------------------------------------
U.S. Real Estate -- Class II $ 852.16 $ 1,880.29 $ 2,941.38 $ 5,749.24
- ------------------------------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------------------
If you do not surrender your contract at the end
of the applicable time period
----------------------------------------------------------
Portfolio Name 1 year 3 years 5 years 10 years
- -----------------------------------------------------------------------------------------------------------
EQ ADVISORS TRUST:
- ------------------------------------------------------------------------------------------------------------
EQ/MFS Investors Trust $ 449.67 $ 1,377.90 $ 2,346.40 $ 4,958.87
EQ/Money Market $ 416.07 $ 1,279.51 $ 2,186.76 $ 4,664.47
EQ/Putnam Growth & Income Value $ 448.62 $ 1,374.84 $ 2,341.45 $ 4,949.82
EQ/Putnam Voyager $ 457.02 $ 1,399.34 $ 2,381.03 $ 5,021.94
EQ/Small Company Index $ 438.12 $ 1,344.16 $ 2,291.78 $ 4,858.80
EQ/Technology $ 479.07 $ 1,463.44 $ 2,484.26 $ 5,208.37
- ------------------------------------------------------------------------------------------------------------
BARR ROSENBERG VARIABLE INSURANCE TRUST:
- ------------------------------------------------------------------------------------------------------------
Laudus Rosenberg VIT Value Long/Short Equity $ 1,160.56 $ 3,318.36 $ 5,276.30 $ 9,422.13
- ------------------------------------------------------------------------------------------------------------
THE UNIVERSAL INSTITUTIONAL FUNDS, INC.:
- ------------------------------------------------------------------------------------------------------------
U.S. Real Estate -- Class II $ 502.16 $ 1,530.29 $ 2,591.38 $ 5,399.24
- ------------------------------------------------------------------------------------------------------------
11
(5) TAX INFORMATION
REQUIRED MINIMUM DISTRIBUTIONS
Distributions must be made according to rules in the Code and Treasury
Regulations and the terms of the plan. Treasury Regulations on required minimum
distributions were proposed in 1987, revised in 2001 and finalized in 2002. The
2002 final Regulations generally apply beginning in January 2003. The 2002
final regulations include Temporary Regulations applicable to annuity contracts
used to fund plans. Certain provisions of the Temporary Regulations concerning
the actuarial value of additional contract benefits which could have increased
the amount required to be distributed from contracts have currently been
suspended. However, these or similar provisions may apply in future years.
Under transitional rules, the 1987 and 2001 proposed regulations may continue
to apply to annuity payments. Please consult your plan administrator and tax
advisor concerning applicability of these complex rules to your situation.
(6) UPDATED INFORMATION ON 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
$508.31 billion in assets as of December 31, 2003. 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.
Effective on or about September 7, 2004, we expect, subject to regulatory
approval, to change the name of "The Equitable Life Assurance Society of the
United States" to "AXA Equitable Life Insurance Company." When the name change
becomes effective, all references in any current prospectus, prospectus
supplement or statement of additional information to "The Equitable Life
Assurance Society of the United States" will become references to "AXA
Equitable Life Insurance Company." Accordingly, all references to "Equitable
Life" or "Equitable" will become references to "AXA Equitable."
(7) APPLICABLE ONLY TO CONTRACTS WITH THE GUARANTEED INTEREST OPTION
From time to time we may remove the restrictions regarding transferring amounts
out of the guaranteed interest option. 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, if any
dollar cost averaging transfer out of the guaranteed interest account causes a
violation of the 25% outbound restriction, that dollar cost averaging program
will be terminated for the current contract year. A new dollar cost averaging
program can be started in the next or subsequent contract years.
(8) DISRUPTIVE TRANSFER ACTIVITY
Frequent transfers, including market timing and other program trading
strategies, may be disruptive to the underlying portfolios in which the
variable investment options invest. Disruptive transfer activity may hurt the
long term performance of a portfolio by, for example, requiring it to maintain
larger amounts of cash or to liquidate portfolio holdings at a disadvantageous
time or price. We currently use the procedures described below to discourage
disruptive transfer activity in AXA Premier VIP Trust and EQ Advisors Trust.
You should understand, however, that these procedures are subject to the
following limitations: (1) they do not eliminate the possibility that
disruptive transfer activity, including market timing, will occur or that
portfolio performance will be affected by such activity; (2) the design of
these procedures involves inherently subjective judgments, which we and AXA
Premier VIP Trust and EQ Advisors Trust seek to make in a fair and reasonable
manner consistent with interests of all policy and contract owners. Certain
frequent transfer activities attempt to exploit inefficiencies in how portfolio
securities are valued. Please see the prospectuses for the underlying
portfolios for more information on how portfolio shares are priced.
If we determine that your transfer patterns are disruptive, 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. 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 reduce disruptive activity, we
monitor the frequency of transfers, including the size of transfers in relation
to portfolio assets, in each underlying portfolio. When a potentially
disruptive transfer into or out of a portfolio occurs on a day when the
portfolio's aggregate deposits or aggregate redemptions exceed our monitoring
threshold, we may take the actions described above to restrict availability of
12
voice, fax and automated transaction services. We currently apply such action
for the remaining life of each affected contract. We also currently provide a
letter to owners who have engaged in disruptive transfer activity of our
intention to restrict access to communication 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 potentially disruptive transfer
activity and our monitoring procedures and thresholds, as well as change our
procedures to restrict this activity.
Our ability to monitor potentially disruptive transfer activity is limited in
certain circumstances. Group annuity contracts may be owned by retirement plans
on whose behalf we provide transfer instructions on an omnibus (aggregate)
basis, which may mask the disruptive transfer activity of individual plan
participants, and/or interfere with our ability to restrict communication
services. Also, underlying portfolios that are not in AXA Premier VIP Trust or
EQ Advisors Trust may be available for investment through companies that may
have policies and procedures regarding disruptive transfer activity that are
different from ours. Please see the prospectuses for those underlying
portfolios for more information.
(9) WIRE TRANSMITTALS AND ELECTRONIC APPLICATIONS
We accept initial and subsequent contributions sent by wire to our processing
office by agreement with certain broker-dealers. Such transmittals must be
accompanied by information we require to allocate your contribution. Wire
orders not accompanied by complete information may be retained as described
under "How you can make your contributions" under "Contract features and
benefits" earlier in this Prospectus.
Even if we accept the wire order and essential information, a contract
generally will not be issued until we receive and accept a properly completed
application. In certain cases we may issue a contract based on information
provided through certain broker-dealers with which we have established
electronic facilities. In any such cases, you must sign our Acknowledgment of
Receipt form.
Where we require a signed application, the above procedures do not apply and no
financial transactions will be permitted until we receive the signed
application and have issued the contract. Where we issue a contract based on
information provided through electronic facilities, we require an
Acknowledgment of Receipt form, and financial transactions are only permitted
if you request them in writing, sign the request and have it signature
guaranteed, until we receive the signed Acknowledgment of Receipt form. After
your contract has been issued, additional contributions may be transmitted by
wire.
In general, the transaction date for electronic transmissions is the date on
which we receive at our regular processing office all required information and
the funds due for your contribution. We may also establish same-day electronic
processing facilities with a broker-dealer that has undertaken to pay
contribution amounts on behalf of our customers. In such cases, the transaction
date for properly processed orders is the business day on which the
broker-dealer inputs all required information into its electronic processing
system. You can contact us to find out more about such arrangements.
After your contract has been issued, additional contributions may be
transmitted by wire.
(10) CERTAIN INFORMATION ABOUT 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.
If we have entered into an agreement with your broker-dealer for automated
processing of contributions upon receipt of customer order, your contribution
will be considered received at the time your broker-dealer receives your
contribution and all information needed to process your application, along with
any required documents, and transmits your order to us in accordance with our
processing procedures. Such arrangements may apply to initial contributions,
subsequent contributions, or both, and may be commenced or terminated at any
time without prior notice. If required by law, the "closing time" for such
orders will be earlier than 4 p.m., Eastern Time.
For more information, including additional instances when a different date may
apply to your contributions, please see "More Information" in your prospectus.
(11) CONDENSED FINANCIAL INFORMATION
The following table sets 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, 2003. The table shows unit values
based on the lowest and highest charges that would apply to any contract or
investment option to which this supplement relates, including the lowest and
highest charges that would apply to the underlying portfolios. Therefore, if
your contract has different charges or features than those assumed, your unit
values will be different than those shown. Please refer to the SAI for a
complete presentation of the unit values and units outstanding. The table also
shows the total number of units outstanding for all contracts to which this
supplement relates.
The unit values and number of units outstanding shown below are for contracts
offered under Separate Accounts 45 and 49 with the same daily asset charges of
0.50%.
13
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, 2003.
- -------------------------------------------------------------------------------------------------------------
For the years ending December 31,
--------------------------------------------------
2003 2002 2001 2000
- -------------------------------------------------------------------------------------------------------------
AXA Moderate Allocation
- -------------------------------------------------------------------------------------------------------------
Unit value $ 48.11 $ 40.59 $ 46.74 --
- -------------------------------------------------------------------------------------------------------------
Separate Account 45 number of units outstanding (000's) 1 3 3 --
- -------------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) -- -- -- --
- -------------------------------------------------------------------------------------------------------------
AXA Premier VIP Aggressive Equity
- -------------------------------------------------------------------------------------------------------------
Unit value $ 56.83 $ 41.54 $ 58.69 $ 78.83
- -------------------------------------------------------------------------------------------------------------
Separate Account 45 number of units outstanding (000's) -- -- -- --
- -------------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) -- -- -- --
- -------------------------------------------------------------------------------------------------------------
AXA Premier VIP Core Bond
- -------------------------------------------------------------------------------------------------------------
Unit value $ 11.11 $ 10.76 -- --
- -------------------------------------------------------------------------------------------------------------
Separate Account 45 number of units outstanding (000's) 1 2 -- --
- -------------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) -- -- -- --
- -------------------------------------------------------------------------------------------------------------
AXA Premier VIP Health Care
-------------------------------------------------------------------------------------------------------------
Unit value $ 10.16 $ 7.97 -- --
-------------------------------------------------------------------------------------------------------------
Separate Account 45 number of units outstanding (000's) -- -- -- --
- -------------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) -- -- -- --
- -------------------------------------------------------------------------------------------------------------
AXA Premier VIP High Yield
- -------------------------------------------------------------------------------------------------------------
Unit value $ 31.80 $ 26.08 $ 27.00 $ 26.95
- -------------------------------------------------------------------------------------------------------------
Separate Account 45 number of units outstanding (000's) 2 2 2 --
- -------------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) -- -- -- --
- -------------------------------------------------------------------------------------------------------------
AXA Premier VIP International Equity
- -------------------------------------------------------------------------------------------------------------
Unit value $ 10.52 $ 7.87 -- --
- -------------------------------------------------------------------------------------------------------------
Separate Account 45 number of units outstanding (000's) -- 1 -- --
- -------------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) -- -- -- --
- -------------------------------------------------------------------------------------------------------------
AXA Premier VIP Large Cap Core Equity
- -------------------------------------------------------------------------------------------------------------
Unit value $ 9.83 $ 7.71 -- --
- -------------------------------------------------------------------------------------------------------------
Separate Account 45 number of units outstanding (000's) 1 2 -- --
- -------------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) -- -- -- --
- -------------------------------------------------------------------------------------------------------------
AXA Premier VIP Large Cap Growth
- -------------------------------------------------------------------------------------------------------------
Unit value $ 8.90 $ 6.84 -- --
- -------------------------------------------------------------------------------------------------------------
Separate Account 45 number of units outstanding (000's) 2 3 -- --
- -------------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) -- -- -- --
- -------------------------------------------------------------------------------------------------------------
AXA Premier VIP Large Cap Value
Unit value $ 10.40 $ 7.98 -- --
- -------------------------------------------------------------------------------------------------------------
Separate Account 45 number of units outstanding (000's) -- -- -- --
- -------------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) -- -- -- --
- -------------------------------------------------------------------------------------------------------------
AXA Premier VIP Small/Mid Cap Growth
- -------------------------------------------------------------------------------------------------------------
Unit value $ 8.72 $ 6.25 -- --
- -------------------------------------------------------------------------------------------------------------
Separate Account 45 number of units outstanding (000's) 1 3 -- --
- -------------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) -- -- -- --
- -------------------------------------------------------------------------------------------------------------
AXA Premier VIP Small/Mid Cap Value
- -------------------------------------------------------------------------------------------------------------
Unit value $ 10.40 $ 7.43 -- --
- -------------------------------------------------------------------------------------------------------------
Separate Account 45 number of units outstanding (000's) -- 1 -- --
- -------------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) -- -- -- --
- -------------------------------------------------------------------------------------------------------------
AXA Premier VIP Technology
- -------------------------------------------------------------------------------------------------------------
Unit value $ 8.96 $ 5.71 -- --
- -------------------------------------------------------------------------------------------------------------
Separate Account 45 number of units outstanding (000's) -- -- -- --
- -------------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) -- -- -- --
- -------------------------------------------------------------------------------------------------------------
EQ/Alliance Common Stock
- -------------------------------------------------------------------------------------------------------------
Unit value $268.33 $ 180.32 $ 271.84 $ 306.09
- -------------------------------------------------------------------------------------------------------------
Separate Account 45 number of units outstanding (000's) 7 7 -- --
- -------------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) -- -- -- --
- -------------------------------------------------------------------------------------------------------------
14
- -------------------------------------------------------------------------------------------------------------
For the years ending December 31,
--------------------------------------------------
2003 2002 2001 2000
- -------------------------------------------------------------------------------------------------------------
EQ/Alliance Growth and Income
- -------------------------------------------------------------------------------------------------------------
Unit value $ 27.85 $ 21.46 $ 27.40 --
- -------------------------------------------------------------------------------------------------------------
Separate Account 45 number of units outstanding (000's) 6 5 4 --
- -------------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) -- -- -- --
- -------------------------------------------------------------------------------------------------------------
EQ/Alliance Intermediate Government Securities
- -------------------------------------------------------------------------------------------------------------
Unit value $ 20.69 $ 20.36 $ 18.84 --
- -------------------------------------------------------------------------------------------------------------
Separate Account 45 number of units outstanding (000's) 4 10 8 --
- -------------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) -- -- -- --
- -------------------------------------------------------------------------------------------------------------
EQ/Alliance International
- -------------------------------------------------------------------------------------------------------------
Unit value $ 12.29 $ 9.14 $ 10.22 --
- -------------------------------------------------------------------------------------------------------------
Separate Account 45 number of units outstanding (000's) 5 4 3 --
- -------------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) -- -- -- --
- -------------------------------------------------------------------------------------------------------------
EQ/Alliance Premier Growth
- -------------------------------------------------------------------------------------------------------------
Unit value $ 6.12 $ 4.99 $ 7.29 $ 9.63
- -------------------------------------------------------------------------------------------------------------
Separate Account 45 number of units outstanding (000's) 1 4 3 --
- -------------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) -- -- -- --
- -------------------------------------------------------------------------------------------------------------
EQ/Quality Bond
- -------------------------------------------------------------------------------------------------------------
Unit value $ 16.96 $ 16.46 -- --
- -------------------------------------------------------------------------------------------------------------
Separate Account 45 number of units outstanding (000's) 6 6 -- --
- -------------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) -- -- -- --
- -------------------------------------------------------------------------------------------------------------
EQ/Alliance Small Cap Growth
- -------------------------------------------------------------------------------------------------------------
Unit value $ 14.47 $ 10.32 $ 14.86 $ 17.22
- -------------------------------------------------------------------------------------------------------------
Separate Account 45 number of units outstanding (000's) 4 11 4 --
- -------------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) -- -- -- --
- -------------------------------------------------------------------------------------------------------------
EQ/Bernstein Diversified Value
- -------------------------------------------------------------------------------------------------------------
Unit value $ 13.56 $ 10.58 $ 12.31 $ 12.01
- -------------------------------------------------------------------------------------------------------------
Separate Account 45 number of units outstanding (000's) 6 15 10 --
- -------------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) -- -- -- --
- -------------------------------------------------------------------------------------------------------------
EQ/Calvert Socially Responsible
- -------------------------------------------------------------------------------------------------------------
Unit value $ 8.25 $ 6.48 $ 8.85 --
- -------------------------------------------------------------------------------------------------------------
Separate Account 45 number of units outstanding (000's) -- -- -- --
- -------------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) -- -- -- --
- -------------------------------------------------------------------------------------------------------------
EQ/Capital Guardian International
- -------------------------------------------------------------------------------------------------------------
Unit value $ 9.92 $ 7.52 $ 8.90 $ 11.30
- -------------------------------------------------------------------------------------------------------------
Separate Account 45 number of units outstanding (000's) -- -- -- --
- -------------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) -- -- -- --
- -------------------------------------------------------------------------------------------------------------
EQ/Capital Guardian Research
- -------------------------------------------------------------------------------------------------------------
Unit value $ 10.76 $ 8.22 $ 10.97 $ 11.25
- -------------------------------------------------------------------------------------------------------------
Separate Account 45 number of units outstanding (000's) -- 6 -- --
- -------------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) -- -- -- --
- -------------------------------------------------------------------------------------------------------------
EQ/Capital Guardian U. S. Equity
- -------------------------------------------------------------------------------------------------------------
Unit value $ 10.71 $ 7.89 $ 10.39 $ 10.66
- -------------------------------------------------------------------------------------------------------------
Separate Account 45 number of units outstanding (000's) 17 13 1 --
- -------------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) -- -- -- --
- -------------------------------------------------------------------------------------------------------------
EQ/Emerging Markets Equity
- -------------------------------------------------------------------------------------------------------------
Unit value $ 9.21 $ 5.94 $ 6.34 $ 6.72
- -------------------------------------------------------------------------------------------------------------
Separate Account 45 number of units outstanding (000's) 11 11 2 --
- -------------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) -- -- -- --
- -------------------------------------------------------------------------------------------------------------
EQ/Equity 500 Index
- -------------------------------------------------------------------------------------------------------------
Unit value $ 25.65 $ 20.16 $ 26.11 $ 29.88
- -------------------------------------------------------------------------------------------------------------
Separate Account 45 number of units outstanding (000's) 62 62 1 --
- -------------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) -- -- -- --
- -------------------------------------------------------------------------------------------------------------
15
- -------------------------------------------------------------------------------------------------------------
For the years ending December 31,
--------------------------------------------------
2003 2002 2001 2000
- -------------------------------------------------------------------------------------------------------------
- -------------------------------------------------------------------------------------------------------------
EQ/Evergreen Omega
- -------------------------------------------------------------------------------------------------------------
Unit value $ 8.23 $ 5.99 $ 7.92 --
- -------------------------------------------------------------------------------------------------------------
Separate Account 45 number of units outstanding (000's) -- -- -- --
- -------------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) -- -- -- --
- -------------------------------------------------------------------------------------------------------------
EQ/FI Mid Cap
- -------------------------------------------------------------------------------------------------------------
Unit value $10.01 $ 7.01 $ 8.64 $ 10.03
- -------------------------------------------------------------------------------------------------------------
Separate Account 45 number of units outstanding (000's) 576 582 6 --
- -------------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) -- -- -- --
- -------------------------------------------------------------------------------------------------------------
EQ/FI Small/Mid Cap Value
- -------------------------------------------------------------------------------------------------------------
Unit value $13.12 $ 9.89 $ 11.66 $ 11.27
- -------------------------------------------------------------------------------------------------------------
Separate Account 45 number of units outstanding (000's) 407 416 13 --
- -------------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) -- -- -- --
- -------------------------------------------------------------------------------------------------------------
EQ/J.P. Morgan Core Bond
- -------------------------------------------------------------------------------------------------------------
Unit value $14.19 $ 13.80 $ 12.65 $ 11.78
- -------------------------------------------------------------------------------------------------------------
Separate Account 45 number of units outstanding (000's) 1 1 -- --
- -------------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) -- -- -- --
- -------------------------------------------------------------------------------------------------------------
EQ/Janus Large Cap Growth
- -------------------------------------------------------------------------------------------------------------
Unit value $ 5.60 $ 4.47 $ 6.45 $ 8.42
- -------------------------------------------------------------------------------------------------------------
Separate Account 45 number of units outstanding (000's) 11 13 10 --
- -------------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) -- -- -- --
- -------------------------------------------------------------------------------------------------------------
EQ/Lazard Small Cap Value
- -------------------------------------------------------------------------------------------------------------
Unit value 15,15 $ 11.08 $ 12.93 $ 11.04
- -------------------------------------------------------------------------------------------------------------
Separate Account 45 number of units outstanding (000's) 16 7 -- --
- -------------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) -- -- -- --
- -------------------------------------------------------------------------------------------------------------
EQ/Marsico Focus
- -------------------------------------------------------------------------------------------------------------
Unit value $13.06 $ 10.01 $ 11.37 --
- -------------------------------------------------------------------------------------------------------------
Separate Account 45 number of units outstanding (000's) 3 2 -- --
- -------------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) -- -- -- --
- -------------------------------------------------------------------------------------------------------------
EQ/Mercury Basic Value Equity
- -------------------------------------------------------------------------------------------------------------
Unit value $19.38 $ 14.84 $ 17.90 --
- -------------------------------------------------------------------------------------------------------------
Separate Account 45 number of units outstanding (000's) 187 185 1 --
- -------------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) -- -- -- --
- -------------------------------------------------------------------------------------------------------------
EQ/Mercury International Value
- -------------------------------------------------------------------------------------------------------------
Unit value $14.90 $ 11.70 $ 14.10 $ 18.06
- -------------------------------------------------------------------------------------------------------------
Separate Account 45 number of units outstanding (000's) -- 8 -- --
- -------------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) -- -- -- --
- -------------------------------------------------------------------------------------------------------------
EQ/MFS Emerging Growth Companies
- -------------------------------------------------------------------------------------------------------------
Unit value $12.58 $ 9.77 $ 14.96 $ 22.79
- -------------------------------------------------------------------------------------------------------------
Separate Account 45 number of units outstanding (000's) -- -- -- --
- -------------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) -- -- -- --
- -------------------------------------------------------------------------------------------------------------
EQ/MFS Investors Trust
- -------------------------------------------------------------------------------------------------------------
Unit value $ 8.53 $ 7.02 $ 8.94 $ 10.69
- -------------------------------------------------------------------------------------------------------------
Separate Account 45 number of units outstanding (000's) 21 13 2 --
- -------------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) -- -- -- --
- -------------------------------------------------------------------------------------------------------------
EQ/Money Market
- -------------------------------------------------------------------------------------------------------------
Unit value $34.36 $ 34.34 $ 34.09 $ 33.08
- -------------------------------------------------------------------------------------------------------------
Separate Account 45 number of units outstanding (000's) 2 1 19 --
- -------------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) -- -- 124 --
- -------------------------------------------------------------------------------------------------------------
EQ/Putnam Growth & Income Value
- -------------------------------------------------------------------------------------------------------------
Unit value $12.78 $ 10.13 $ 12.57 $ 13.56
- -------------------------------------------------------------------------------------------------------------
Separate Account 45 number of units outstanding (000's) -- -- -- --
- -------------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) -- -- -- --
- -------------------------------------------------------------------------------------------------------------
16
- -------------------------------------------------------------------------------------------------------------
For the years ending December 31,
--------------------------------------------------
2003 2002 2001 2000
- -------------------------------------------------------------------------------------------------------------
EQ/Putnam Voyager
- -------------------------------------------------------------------------------------------------------------
Unit value $ 12.14 $ 9.84 $ 13.43 $ 17.87
- -------------------------------------------------------------------------------------------------------------
Separate Account 45 number of units outstanding (000's) 1 1 -- --
- -------------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) -- -- -- --
- -------------------------------------------------------------------------------------------------------------
EQ/Small Company Index
- -------------------------------------------------------------------------------------------------------------
Unit value $ 13.02 $ 8.97 $ 11.40 $ 11.22
- -------------------------------------------------------------------------------------------------------------
Separate Account 45 number of units outstanding (000's) 1 1 1 --
- -------------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) -- -- -- --
- -------------------------------------------------------------------------------------------------------------
EQ/Technology
- -------------------------------------------------------------------------------------------------------------
Unit value $ 4.21 $ 2.95 $ 5.00 $ 6.65
- -------------------------------------------------------------------------------------------------------------
Separate Account 45 number of units outstanding (000's) 29 37 9 --
- -------------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) -- -- -- --
- -------------------------------------------------------------------------------------------------------------
17
The unit values and number of units outstanding shown below are for contracts
offered under Separate Account 49 with the same daily asset charges of 1.90%.
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, 2003.
- ---------------------------------------------------------------------------------
For the years ending December 31,
------------------------------------------
2003 2002 2001
- ---------------------------------------------------------------------------------
AXA Moderate Allocation
- ---------------------------------------------------------------------------------
Unit value $ 37.31 $ 31.93 $ 37.29
- ---------------------------------------------------------------------------------
Number of units outstanding (000's) 11 7 4
- ---------------------------------------------------------------------------------
AXA Premier VIP Aggressive Equity
- ---------------------------------------------------------------------------------
Unit value $ 44.08 $ 32.67 $ 46.83
- ---------------------------------------------------------------------------------
Number of units outstanding (000's) -- -- --
- ---------------------------------------------------------------------------------
AXA Premier VIP Core Bond
- ---------------------------------------------------------------------------------
Unit value $ 10.80 $ 10.61 --
- ---------------------------------------------------------------------------------
Number of units outstanding (000's) 18 13 --
- ---------------------------------------------------------------------------------
AXA Premier VIP Health Care
- ---------------------------------------------------------------------------------
Unit value $ 9.87 $ 7.85 --
- ---------------------------------------------------------------------------------
Number of units outstanding (000's) 3 3 --
- ---------------------------------------------------------------------------------
AXA Premier VIP High Yield
- ---------------------------------------------------------------------------------
Unit value $ 24.99 $ 20.79 $ 21.83
- ---------------------------------------------------------------------------------
Number of units outstanding (000's) 11 7 --
- ---------------------------------------------------------------------------------
AXA Premier VIP International Equity
- ---------------------------------------------------------------------------------
Unit value $ 10.23 $ 7.76 --
- ---------------------------------------------------------------------------------
Number of units outstanding (000's) 6 7 --
- ---------------------------------------------------------------------------------
AXA Premier VIP Large Cap Core Equity
- ---------------------------------------------------------------------------------
Unit value $ 9.55 $ 7.60 --
- ---------------------------------------------------------------------------------
Number of units outstanding (000's) 15 17 --
- ---------------------------------------------------------------------------------
AXA Premier VIP Large Cap Growth
- ---------------------------------------------------------------------------------
Unit value $ 8.65 $ 6.75 --
- ---------------------------------------------------------------------------------
Number of units outstanding (000's) 36 39 --
- ---------------------------------------------------------------------------------
AXA Premier VIP Large Cap Value
- ---------------------------------------------------------------------------------
Unit value $ 10.11 $ 7.86 --
- ---------------------------------------------------------------------------------
Number of units outstanding (000's) 28 30 --
- ---------------------------------------------------------------------------------
AXA Premier VIP Small/Mid Cap Growth
- ---------------------------------------------------------------------------------
Unit value $ 8.48 $ 6.16 --
- ---------------------------------------------------------------------------------
Number of units outstanding (000's) 30 34 --
- ---------------------------------------------------------------------------------
AXA Premier VIP Small/Mid Cap Value
- ---------------------------------------------------------------------------------
Unit value $ 10.11 $ 7.33 --
- ---------------------------------------------------------------------------------
Number of units outstanding (000's) 23 25 --
- ---------------------------------------------------------------------------------
AXA Premier VIP Technology
- ---------------------------------------------------------------------------------
Unit value $ 8.71 $ 5.63 --
- ---------------------------------------------------------------------------------
Number of units outstanding (000's) 4 4 --
- ---------------------------------------------------------------------------------
EQ/Alliance Common Stock
- ---------------------------------------------------------------------------------
Unit value $180.69 $ 123.15 $ 188.32
- ---------------------------------------------------------------------------------
Number of units outstanding (000's) 3 3 1
- ---------------------------------------------------------------------------------
EQ/Alliance Growth and Income
- ---------------------------------------------------------------------------------
Unit value $ 24.09 $ 18.83 --
- ---------------------------------------------------------------------------------
Number of units outstanding (000's) 11 10 --
- ---------------------------------------------------------------------------------
EQ/Alliance Intermediate Government Securities
- ---------------------------------------------------------------------------------
Unit value $ 17.27 $ 17.23 --
- ---------------------------------------------------------------------------------
Number of units outstanding (000's) 3 2 --
- ---------------------------------------------------------------------------------
18
- ---------------------------------------------------------------------------------
For the years ending December 31,
------------------------------------------
2003 2002 2001
- ---------------------------------------------------------------------------------
EQ/Alliance International
- ---------------------------------------------------------------------------------
Unit value $ 10.86 $ 8.19 --
- ---------------------------------------------------------------------------------
Number of units outstanding (000's) 14 -- --
- ---------------------------------------------------------------------------------
EQ/Alliance Premier Growth
- ---------------------------------------------------------------------------------
Unit value $ 5.73 $ 4.74 $ 7.02
- ---------------------------------------------------------------------------------
Number of units outstanding (000's) 111 108 27
- ---------------------------------------------------------------------------------
EQ/Alliance Quality Bond
- ---------------------------------------------------------------------------------
Unit value $ 14.67 $ 14.44 --
- ---------------------------------------------------------------------------------
Number of units outstanding (000's) 25 28 --
- ---------------------------------------------------------------------------------
EQ/Alliance Small Cap Growth
- ---------------------------------------------------------------------------------
Unit value $ 13.61 $ 9.52 $ 13.91
- ---------------------------------------------------------------------------------
Number of units outstanding (000's) 25 31 7
- ---------------------------------------------------------------------------------
EQ/Bernstein Diversified Value
- ---------------------------------------------------------------------------------
Unit value $ 12.45 $ 9.86 $ 11.64
- ---------------------------------------------------------------------------------
Number of units outstanding (000's) 66 66 16
- ---------------------------------------------------------------------------------
EQ/Calvert Socially Responsible
- ---------------------------------------------------------------------------------
Unit value $ 7.75 $ 6.18 $ 8.56
- ---------------------------------------------------------------------------------
Number of units outstanding (000's) -- -- --
- ---------------------------------------------------------------------------------
EQ/Capital Guardian International
- ---------------------------------------------------------------------------------
Unit value $ 9.29 $ 7.14 $ 8.57
- ---------------------------------------------------------------------------------
Number of units outstanding (000's) 36 48 41
- ---------------------------------------------------------------------------------
EQ/Capital Guardian Research
- ---------------------------------------------------------------------------------
Unit value $ 10.07 $ 7.80 $ 10.56
- ---------------------------------------------------------------------------------
Number of units outstanding (000's) 35 37 13
- ---------------------------------------------------------------------------------
EQ/Capital Guardian U. S. Equity
- ---------------------------------------------------------------------------------
Unit value $ 10.02 $ 7.49 $ 10.00
- ---------------------------------------------------------------------------------
Number of units outstanding (000's) 38 40 21
- ---------------------------------------------------------------------------------
EQ/Emerging Markets Equity
- ---------------------------------------------------------------------------------
Unit value $ 8.42 $ 5.50 $ 5.96
- ---------------------------------------------------------------------------------
Number of units outstanding (000's) -- -- --
- ---------------------------------------------------------------------------------
EQ/Equity 500 Index
- ---------------------------------------------------------------------------------
Unit value $ 22.31 $ 17.79 $ 23.37
- ---------------------------------------------------------------------------------
Number of units outstanding (000's) 28 29 11
- ---------------------------------------------------------------------------------
EQ/Evergreen Omega
- ---------------------------------------------------------------------------------
Unit value $ 7.67 $ 5.66 $ 7.59
- ---------------------------------------------------------------------------------
Number of units outstanding (000's) 7 4 --
- ---------------------------------------------------------------------------------
EQ/FI Mid Cap
- ---------------------------------------------------------------------------------
Unit value $ 9.55 $ 6.78 $ 8.48
- ---------------------------------------------------------------------------------
Number of units outstanding (000's) 22 25 5
- ---------------------------------------------------------------------------------
EQ/FI Small/Mid Cap Value
- ---------------------------------------------------------------------------------
Unit value $ 11.94 $ 9.13 $ 10.91
- ---------------------------------------------------------------------------------
Number of units outstanding (000's) 39 40 14
- ---------------------------------------------------------------------------------
EQ/J.P. Morgan Core Bond
- ---------------------------------------------------------------------------------
Unit value $ 13.04 $ 12.85 $ 11.96
- ---------------------------------------------------------------------------------
Number of units outstanding (000's) 60 73 31
- ---------------------------------------------------------------------------------
EQ/Janus Large Cap Growth
- ---------------------------------------------------------------------------------
Unit value $ 5.34 $ 4.33 $ 6.33
- ---------------------------------------------------------------------------------
Number of units outstanding (000's) 38 47 6
- ---------------------------------------------------------------------------------
EQ/Lazard Small Cap Value
- ---------------------------------------------------------------------------------
Unit value $ 13.92 $ 10.33 $ 12.22
- ---------------------------------------------------------------------------------
Number of units outstanding (000's) 44 43 14
- ---------------------------------------------------------------------------------
19
- ---------------------------------------------------------------------------------
For the years ending December 31,
------------------------------------------
2003 2002 2001
- ---------------------------------------------------------------------------------
EQ/Marsico Focus
- ---------------------------------------------------------------------------------
Unit value $ 12.63 $ 9.82 $ 11.32
- ---------------------------------------------------------------------------------
Number of units outstanding (000's) 14 3 2
- ---------------------------------------------------------------------------------
EQ/Mercury Basic Value Equity
- ---------------------------------------------------------------------------------
Unit value $ 17.63 $ 13.70 $ 16.76
- ---------------------------------------------------------------------------------
Number of units outstanding (000's) 39 34 9
- ---------------------------------------------------------------------------------
EQ/Mercury International Value
- ---------------------------------------------------------------------------------
Unit value $ 13.56 $ 10.80 $ 13.20
- ---------------------------------------------------------------------------------
Number of units outstanding (000's) 21 16 18
- ---------------------------------------------------------------------------------
EQ/MFS Emerging Growth Companies
- ---------------------------------------------------------------------------------
Unit value $ 11.44 $ 9.02 $ 14.00
- ---------------------------------------------------------------------------------
Number of units outstanding (000's) 3 2 1
- ---------------------------------------------------------------------------------
EQ/MFS Investors Trust
- ---------------------------------------------------------------------------------
Unit value $ 7.94 $ 6.64 $ 8.56
- ---------------------------------------------------------------------------------
Number of units outstanding (000's) 12 15 6
- ---------------------------------------------------------------------------------
EQ/Money Market
- ---------------------------------------------------------------------------------
Unit value $ 25.00 $ 25.34 $ 25.51
- ---------------------------------------------------------------------------------
Number of units outstanding (000's) 21 114 217
- ---------------------------------------------------------------------------------
EQ/Putnam Growth & Income Value
- ---------------------------------------------------------------------------------
Unit value $ 11.62 $ 9.34 $ 11.77
- ---------------------------------------------------------------------------------
Number of units outstanding (000's) 25 29 19
- ---------------------------------------------------------------------------------
EQ/Putnam Voyager
- ---------------------------------------------------------------------------------
Unit value $ 11.05 $ 9.08 $ 12.57
- ---------------------------------------------------------------------------------
Number of units outstanding (000's) 3 8 4
- ---------------------------------------------------------------------------------
EQ/Small Company Index
- ---------------------------------------------------------------------------------
Unit value $ 11.95 $ 8.35 $ 10.77
- ---------------------------------------------------------------------------------
Number of units outstanding (000's) 13 14 1
- ---------------------------------------------------------------------------------
EQ/Technology
- ---------------------------------------------------------------------------------
Unit value $ 3.99 $ 2.84 $ 4.88
- ---------------------------------------------------------------------------------
Number of units outstanding (000's) 15 14 5
- ---------------------------------------------------------------------------------
20
Appendix
- --------------------------------------------------------------------------------
Dates of previous Prospectuses and Supplements
- ------------------------------------------------------------------------------------------------------------------------------------
Product Distributor
------------------------------------------------------- ------------------------------------------------
AXA Advisors AXA Distributors
------------------------------------------------------- ------------------------------------------------
Prospectus and Prospectus and
Product Name SAI Dates Supplement Dates SAI Dates Supplement Dates
- --------------------------- ----------------- ------------------------------------- ---------------- -------------------------------
Income Manager 4/7/95 7/1/95; 9/28/95 4/7/95 7/1/95; 9/28/95
Accumulator(R) 11/1/95 11/1/95
Income Manager(R) 5/1/96 10/16/96 2/10/97
Rollover IRA 10/17/96 2/10/97 5/1/97 5/1/97
5/1/97 5/1/97; 12/31/97; 5/1/98; 8/1/97
1/4/99; 5/1/99; 5/1/00; 6/23/00; 12/31/97 12/31/97; 5/1/98;
9/1/00; 2/9/01; 9/1/01; 1/14/02; 1/4/99; 5/1/99; 5/1/00; 9/1/00;
2/22/02; 7/15/02; 8/20/02; 1/6/03; 2/9/01; 9/1/01; 1/14/02;
2/20/03; 5/15/03; 8/15/03; 11/24/03; 2/22/02; 7/15/02; 8/20/02;
2/1/04 1/6/03; 2/20/03; 5/15/03;
----------------- ------------------------------------- 8/15/03; 11/24/03; 2/1/04
12/31/97 12/31/97; 5/1/98; 1/4/99; 5/1/99;
5/1/00; 6/23/00; 9/1/00; 2/9/01;
9/1/01; 1/14/02; 2/22/02; 7/15/02;
8/20/02; 1/6/03; 2/20/03; 5/15/03;
8/15/03; 11/24/03; 2/1/04
- --------------------------- ----------------- ------------------------------------- ---------------- -------------------------------
Equitable Accumulator(R) 5/1/98 5/1/98; 6/18/98; 11/30/98 10/1/97(2)
(IRA, NQ and QP) (Accumulator 5/1/99; 5/1/00; 9/1/00; 2/9/01; 12/31/97(2)
Equitable Accumulator(R) only) 9/1/01; 1/14/02; 2/22/02; 7/15/02; 5/1/98 5/1/98; 6/18/98; 11/30/98;
Select(SM) (IRA, NQ, QP) 5/1/99 8/20/02; 1/6/03; 2/20/03; 5/15/03; 5/1/99; 5/1/00; 9/1/00; 2/9/01;
8/15/03; 11/24/03; 2/1/04 9/1/01; 1/14/02; 2/22/02;
7/15/02; 8/20/02; 1/6/03;
2/20/03; 5/15/03; 8/15/03;
11/24/03; 2/1/04
- ------------------------------------------------------------------------------------------------------------------------------------
Appendix 1
- ------------------------------------------------------------------------------------------------------------------------------------
Product Distributor
------------------------------------------------------ -------------------------------------------------
AXA Advisors AXA Distributors
------------------------------------------------------ ------------------------------------------------
Prospectus and Prospectus and
Product Name SAI Dates Supplement Dates SAI Dates Supplement Dates
- --------------------------- ---------------- ------------------------------------- ---------------- -------------------------------
Equitable Accumulator(R) 10/18/99(3) 3/20/00; 5/1/00; 6/23/00; 9/1/00; 5/1/99
Select(SM) 10/13/00; 2/9/01; 9/1/01; 1/14/02; 10/18/99 3/20/00; 5/1/00; 9/1/00;
Equitable Accumulator(R) 2/22/02; 7/15/02; 8/20/02; 1/6/03; 10/13/00; 2/9/01; 9/1/01;
Equitable Accumulator Select 2/20/03; 5/15/03; 8/15/03; 11/24/03; 1/14/02; 2/22/02; 7/15/02;
(2002 Series) 2/1/04 8/20/02; 1/6/03; 2/20/03;
Equitable Accumulator (2002 5/15/03; 8/15/03; 11/24/03;
Series) 2/1/04
---------------- -------------------------------------- ---------------- -------------------------------
5/1/00(3) 3/20/00; 6/23/00; 9/1/00; 9/6/00; 5/1/00 3/20/00; 9/1/00; 9/6/00;
10/13/00; 2/9/01; 9/1/01; 1/14/02; 10/13/00; 2/9/01; 9/1/01;
2/22/02; 7/15/02; 8/20/02; 1/6/03; 1/14/02; 2/22/02; 7/15/02;
2/20/03; 5/15/03; 8/15/03; 11/24/03; 8/20/02; 1/6/03; 2/20/03;
2/1/04 5/15/03; 8/15/03; 11/24/03;
2/1/04
---------------- -------------------------------------- ---------------- -------------------------------
5/1/01(3) 5/1/01(1); 7/30/01(5); 9/1/01; 5/1/01 5/1/01(1); 7/30/01(5);
10/1/01(6); 12/14/01; 1/14/02; 2/22/02; 9/1/01; 10/1/01(6); 12/14/01;
7/15/02; 8/20/02; 1/6/03; 2/20/03; 1/14/02; 2/22/02; 7/15/02;
5/15/03; 8/15/03; 11/24/03; 2/1/04 8/20/02; 1/6/03; 2/20/03;
5/15/03; 8/15/03; 11/24/03;
2/1/04
---------------- --------------------------------------- --------------- -------------------------------
8/13/01(2) 9/1/01; 10/1/01(6); 12/14/01; 1/14/02; N/A N/A
2/22/02; 7/15/02; 8/20/02; 1/6/03;
2/20/03; 5/15/03; 8/15/03; 11/24/03;
2/1/04
---------------- --------------------------------------- --------------- -------------------------------
4/1/02(4) 4/3/02; 5/20/02(7); 6/7/02(2); 4/1/02(4) 4/3/02; 5/20/02(7); 6/7/02(2);
7/15/02; 8/5/02(5); 8/20/02; 11/11/02; 7/15/02; 8/5/02(5); 8/20/02;
12/6/02; 12/09/02; 1/6/03; 2/4/03; 11/11/02; 12/6/02; 12/09/02;
2/20/03; 5/15/03; 8/8/03(8); 8/15/03; 1/6/03; 2/4/03; 2/20/03;
11/24/03; 2/1/04; 2/10/04 5/15/03; 8/8/03(8); 8/15/03;
11/24/03; 2/1/04; 2/10/04
---------------- --------------------------------------- --------------- -------------------------------
5/1/02(3) 5/1/02(1); 7/15/02; 8/20/02; 1/6/03; 5/1/02(3) 5/1/02(1); 7/15/02; 8/20/02;
2/20/03; 5/15/03; 8/15/03; 11/24/03; 1/6/03; 2/20/03; 5/15/03;
2/1/04 8/15/03; 11/24/03; 2/1/04
---------------- --------------------------------------- --------------- -------------------------------
5/1/02(4) 5/20/02(7); 6/7/02(2); 7/15/02; 5/1/02(4) 5/20/02(7); 6/7/02(2); 7/15/02;
8/5/02(5); 8/20/02; 11/11/02; 12/6/02; 8/5/02(5); 8/20/02; 11/11/02;
12/09/02 1/6/03; 2/4/02; 2/20/03 ; 12/06/02; 12/09/02; 1/6/03;
5/15/03; 8/8/03(8); 8/15/03; 11/24/03; 2/4/03; 2/20/03; 5/15/03;
2/1/04; 2/10/04 8/8/03(8); 8/15/03; 11/24/03;
2/1/04; 2/10/04
---------------- --------------------------------------- --------------- -------------------------------
5/1/03(4) 5/15/03; 8/8/03(8); 8/15/03; 11/24/03; 5/1/03(4) 5/15/03; 8/8/03(8); 8/15/03;
2/1/04; 2/10/04 11/24/03; 2/1/04; 2/10/04
- --------------------------- ---------------- --------------------------------------- --------------- -------------------------------
Accumulator(R) 9/15/03 9/15/03(9); 11/24/03; 12/5/03; 1/23/04; 9/15/03 9/15/03(9); 11/24/03; 12/5/03;
(2004 Series) 2/2/04; 2/10/04; 2/23/04(7) 1/23/04; 2/2/04; 2/10/04(7);
2/23/04(7)
- --------------------------- ---------------- --------------------------------------- --------------- -------------------------------
Accumulator(R) Select 9/15/03 9/15/03(9); 11/24/03; 12/5/03; 2/10/04; 9/15/03 9/15/03(9); 11/24/03; 12/5/03;
(2004 Series) 2/23/04(7) 2/10/04; 2/23/04(7)
- ------------------------------------------------------------------------------------------------------------------------------------
2 Appendix
- ------------------------------------------------------------------------------------------------------------------------------------
Product Distributor
------------------------------------------------------ -------------------------------------------------
AXA Advisors AXA Distributors
------------------------------------------------------ -----------------------------------------------
Prospectus and Prospectus and
Product Name SAI Dates Supplement Dates SAI Dates Supplement Dates
- --------------------------- ---------------- ------------------------------------- ---------------- ------------------------------
Equitable Accumulator(R) 9/2/99(3) 8/2/99(3)
Plus(SM) 10/18/99(3) 10/18/99(3)
Equitable Accumulator Plus 5/1/00(3) 6/23/00; 9/1/00; 9/6/00; 10/13/00; 5/1/00(3) 9/1/00; 9/6/00; 10/13/00;
(2002 Series) 2/9/01; 3/19/01; 7/30/01; 9/1/01; 2/9/01; 3/19/01; 7/30/01;
1/14/02; 2/22/02; 7/15/02; 8/20/02; 9/1/01; 1/14/02; 2/22/02;
1/6/03; 2/20/03; 5/15/03; 8/15/03; 7/15/02; 8/20/02; 1/6/03;
11/24/03; 2/1/04 2/20/03; 5/15/03; 8/15/03;
11/24/03; 2/1/04
---------------- ------------------------------------- ---------------- ------------------------------
5/1/01(3) 7/30/01(5); 9/1/01; 12/14/01; 1/14/02; 5/1/01(3) 5/1/01; 7/30/01(5); 9/1/01;
2/22/02; 7/15/02; 8/20/02; 1/6/03; 12/14/01; 1/14/02; 2/22/02;
2/20/03; 5/15/03; 8/15/03; 11/24/03; 7/15/02; 8/20/02; 1/6/03;
2/1/04 2/20/03; 5/15/03; 8/15/03;
11/24/03; 2/1/04
---------------- ------------------------------------- ---------------- ------------------------------
4/1/02(4) 4/3/02; 7/15/02; 8/5/02(5); 8/20/02; 4/1/02(4) 4/3/02; 7/15/02; 8/5/02(5);
11/11/02; 12/6/02; 12/9/02; 1/6/03; 8/20/02; 11/11/02; 12/6/02;
2/4/03; 2/20/03; 5/15/03; 8/15/03; 12/9/02; 1/6/03; 2/4/03;
11/24/03; 2/1/04; 2/10/04 2/20/03; 5/15/03; 8/15/03;
11/24/03; 2/1/04; 2/10/04
---------------- ------------------------------------- ---------------- ------------------------------
5/1/02(3) 7/15/02; 8/20/02; 1/6/03; 2/20/03; 5/1/02(3) 7/15/02; 8/20/02; 1/6/03;
5/15/03; 8/15/03; 11/24/03; 2/1/04; 2/20/03; 5/15/03; 8/15/03;
2/10/04 11/24/03; 2/1/04; 2/10/04
---------------- ------------------------------------- ---------------- ------------------------------
5/1/02(4) 7/15/02; 8/5/02(5); 8/20/02; 11/11/02; 5/1/02(4) 7/15/02; 8/5/02(5); 8/20/02;
12/6/02; 12/9/02; 1/6/03; 2/4/03; 11/11/02; 12/6/02; 12/9/02;
2/20/03; 5/15/03; 8/15/03; 11/24/03; 1/6/03; 2/4/03; 2/20/03;
2/1/04; 2/10/04 5/15/03; 8/15/03; 11/24/03;
2/1/04; 2/10/04
- --------------------------- ---------------- ------------------------------------- ---------------- ------------------------------
5/1/03(4) 5/15/03; 6/20/03; 8/15/03; 11/24/03; 5/1/03(4) 5/15/03; 6/20/03; 8/15/03;
2/1/04; 2/10/04 11/24/03; 2/1/04; 2/10/04
- --------------------------- ---------------- ------------------------------------- ---------------- ------------------------------
Accumulator(R) Plus 9/15/03 9/15/03; 11/24/03; 12/5/03; 1/23/04; 9/15/03 9/15/03; 11/24/03; 12/5/03;
(2004 Series) 2/2/04; 2/10/04; 2/23/04(7); 1/23/04; 2/2/04; 2/10/04;
2/23/04(7);
- --------------------------- ---------------- ------------------------------------- ---------------- ------------------------------
Equitable Accumulator(R) N/A N/A 10/1/01 10/1/01(6); 12/14/01; 1/14/02;
Select(SM) II 2/22/02 7/15/02; 8/20/02;
1/6/03; 2/20/03; 5/15/03;
8/15/03; 11/24/03; 2/1/04
- --------------------------- ---------------- ------------------------------------- ---------------- ------------------------------
Equitable Accumulator(R) N/A N/A 10/1/01 10/1/01(7); 12/14/01; 1/14/02;
Elite(SM) II 2/22/02 7/15/02; 8/20/02;
1/6/03; 2/20/03; 5/15/03;
8/15/03; 11/24/03; 2/1/04
- ------------------------------------------------------------------------------------------------------------------------------------
Appendix 3
- ------------------------------------------------------------------------------------------------------------------------------------
Product Distributor
------------------------------------------------------ -------------------------------------------------
AXA Advisors AXA Distributors
------------------------------------------------------ ------------------------------------------------
Prospectus and Prospectus and
Product Name SAI Dates Supplement Dates SAI Dates Supplement Dates
- --------------------------- --------------- ------------------------------------- --------------- -------------------------------
Equitable Accumulator(R) 8/13/01(3) 9/1/01; 10/1/01(7); 12/14/01; 1/14/02; 8/13/01(3) 9/1/01; 10/1/01(7); 12/14/01;
Elite(SM) 2/22/02; 7/15/02; 8/20/02; 11/11/02; 1/14/02; 2/22/02; 7/15/02;
Equitable Accumulator Elite 1/6/03; 2/20/03; 5/15/03; 8/15/03; 8/20/02; 11/11/02; 1/6/03;
(2002 Series) 11/24/03; 2/1/04 2/20/03; 5/15/03; 8/15/03;
11/24/03; 2/1/04
--------------- ------------------------------------- --------------- -------------------------------
4/1/02(4) 4/3/02(5); 5/20/02(7); 7/15/02; 4/1/02(4) 4/3/02(5); 5/20/02(7); 7/15/02;
8/5/02(5); 8/5/02(5); 8/20/02; 11/11/02;
8/20/02; 11/11/02; 12/6/02; 12/9/02; 12/6/02; 12/9/02; 1/6/03;
1/6/03; 2/4/03; 2/20/03 ; 5/15/03; 2/4/03; 2/20/03; 5/15/03;
8/15/03; 11/24/03; 2/1/04; 2/10/04 8/15/03; 11/24/03; 2/1/04;
2/10/04
--------------- ------------------------------------- --------------- -------------------------------
5/1/02(3) 7/15/02; 8/20/02; 1/6/03; 2/20/03; 5/1/02(3) 7/15/02; 8/20/02; 1/6/03;
5/15/03; 8/15/03; 11/24/03; 2/1/04 2/20/03; 5/15/03; 8/15/03;
11/24/03; 2/1/04
--------------- ------------------------------------- --------------- -------------------------------
5/1/02(4) 5/20/02(7); 7/15/02; 8/5/02(5); 8/20/02; 5/1/02(4) 5/20/02(7); 7/15/02; 8/5/02(5);
11/11/02; 12/6/02; 12/9/02; 1/6/03; 8/20/02; 11/11/02; 12/6/02;
2/4/03; 2/20/03; 5/15/03; 8/15/03; 12/9/02; 1/6/03; 2/4/03;
11/24/03; 2/1/04; 2/10/04 2/20/03; 5/15/03; 8/15/03;
11/24/03; 2/1/04; 2/10/04
--------------- ------------------------------------- --------------- -------------------------------
5/1/03(4) 5/15/03; 6/20/03; 8/15/03; 11/24/03; 5/1/03(4) 5/15/03; 6/20/03; 8/15/03;
2/1/04; 2/10/04 11/24/03; 2/1/04; 2/10/04
- --------------------------- --------------- ------------------------------------- --------------- -------------------------------
Accumulator(R) Elite 9/15/03 9/15/03(10); 11/24/03; 12/5/03; 9/15/03 9/15/0310); 11/24/03; 12/5/03;
(2004 Series) 1/23/04; 2/2/04; 2/10/04; 2/23/04(7) 2/2/04; 1/23/04; 2/10/04;
2/23/04(7);
- --------------------------- --------------- ------------------------------------- --------------- -------------------------------
Equitable Accumulator(R) 11/17/00 2/9/01; 3/19/01; 7/30/01(5); 9/1/01; 5/15/00 9/1/00; 9/6/00; 2/9/01;
Advisor(SM) 12/14/01; 1/14/02; 2/22/02; 7/15/02; 7/30/01(5); 9/1/01; 12/14/01;
8/20/02; 11/11/02; 1/6/03; 2/20/03; 1/14/02; 2/22/02; 7/15/02;
5/15/03; 8/15/03; 11/24/03; 2/1/04 8/20/02; 1/6/03; 2/20/03;
5/15/03; 8/15/03; 11/24/03;
2/1/04
--------------- ------------------------------------- --------------- -------------------------------
5/1/01 9/1/01; 12/14/01; 1/14/02; 2/22/02; 5/1/01 9/1/01; 12/14/01; 1/14/02;
7/15/02; 8/20/02; 11/11/02; 1/6/03; 2/22/02; 7/15/02; 8/20/02;
2/20/03; 5/15/03; 8/15/03; 11/24/03; 1/6/03; 2/20/03; 5/15/03;
2/1/04 8/15/03; 11/24/03; 2/1/04
--------------- ------------------------------------- --------------- -------------------------------
5/1/02 5/1/02; 7/15/02; 8/20/02; 11/11/02; 5/1/02 7/15/02; 8/5/02; 8/20/02;
1/6/03; 2/20/03; 5/15/03; 8/15/03; 12/16/02; 1/6/03; 2/20/03;
11/24/03; 2/1/04 5/15/03; 8/15/03; 11/24/03;
2/1/04
--------------- ------------------------------------- --------------- -------------------------------
5/1/03 5/15/03; 8/15/03; 11/24/03; 12/23/03; 5/1/03 5/15/03; 8/15/03; 11/24/03;
2/1/04; 2/10/04 12/23/03; 2/1/04; 2/10/04
- ------------------------------------------------------------------------------------------------------------------------------------
4 Appendix
- ------------------------------------------------------------------------------------------------------------------------------------
Product Distributor
------------------------------------------------------ -------------------------------------------------
AXA Advisors AXA Distributors
------------------------------------------------------ ------------------------------------------------
Prospectus and Prospectus and
Product Name SAI Dates Supplement Dates SAI Dates Supplement Dates
- --------------------------- --------------- ------------------------------------- --------------- -------------------------------
Equitable Accumulator(R) N/A N/A 9/2/99
Express(SM) 10/18/99
5/1/00 9/1/00; 9/6/00; 2/9/01;
7/30/01(5); 9/1/01; 12/14/01;
1/14/02; 2/22/02; 7/15/02;
8/20/02; 1/6/03; 5/15/03;
8/15/03; 11/24/03; 2/1/04
--------------- -------------------------------
5/1/01 7/30/01(5); 9/1/01; 1/14/02;
2/22/02; 7/15/02; 8/20/02;
1/6/03; 5/15/03; 8/15/03;
11/24/03; 2/1/04
--------------- -------------------------------
5/1/03 5/15/03; 8/15/03; 11/24/03;
12/23/03; 2/1/04; 2/10/04
- ------------------------------------------------------------------------------------------------------------------------------------
(1) applies to Accumulator(R) contracts issued in Oregon only.
(2) applies to Accumulator(R) Select(SM) only.
(3) applies to non-2002 Series only.
(4) applies to 2002 Series only.
(5) applies to contracts issued in Washington only.
(6) applies to Accumulator(R) Select(SM) and Select(SM) II contracts issued in
New York only.
(7) applies to contracts issued in New York only.
(8) applies to Accumulator(R) only.
(9) There are two supplements dated 9/15/03 for Accumulator(R) and
Accumulator(R) Select(SM).
(10) There are three supplements dated 9/15/03 for Accumulator(R) Elite(SM).
Appendix 5
Statement of additional information
- --------------------------------------------------------------------------------
TABLE OF CONTENTS
Page
Unit Values 2
Equitable Life's Pending Name Change 2
Custodian and Independent Auditors 2
Distribution of the Contracts 3
Financial Statements 2
How to obtain an Equitable Accumulator(R) Statement of Additional Information
Send this request form to:
Equitable Accumulator(R)
P.O. Box 1547
Secaucus, NJ 07096-1547
- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
Please send me a combined Equitable Accumulator(R) series SAI dated May 1, 2004
- --------------------------------------------------------------------------------
Name
- --------------------------------------------------------------------------------
Address
- --------------------------------------------------------------------------------
City State Zip
(SAI 4ACS(5/03))
EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES
SUPPLEMENT DATED MAY 1, 2004 TO PROSPECTUSES FOR:
o Income Manager Accumulator(R) o Equitable Accumulator(R) o Equitable Accumulator(R) Elite(SM)
o Income Manager(R) Rollover IRA o Equitable Accumulator(R) Select(SM) o Equitable Accumulator(R) Elite(SM) II
o Equitable Accumulator(R) (IRA, NQ, QP) o Equitable Accumulator(R) Select(SM) II
o Equitable Accumulator(R) Plus(SM) o Equitable Accumulator(R) Express(SM)
- --------------------------------------------------------------------------------
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, 2004. 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 1547, Secaucus, NJ 07096-1547, or calling (800)
789-7771. 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 the following: (1) how to reach
us; (2) combination of certain investment options; (3) investment options; (4)
the Trusts' annual expenses and expense example; (5) tax information; (6)
updated information on Equitable Life; (7) information applicable only to
contracts with guaranteed interest option; (8) disruptive transfer activity;
(9) subsequent contributions information; and (10) condensed financial
information.
(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 CONTRIBUTIONS SENT BY REGULAR MAIL:
- --------------------------------------------------------------------------------
Equitable Accumulator(R)
P.O. Box 13014
Newark, NJ 07188-0014
- --------------------------------------------------------------------------------
FOR CONTRIBUTIONS SENT BY EXPRESS DELIVERY:
- --------------------------------------------------------------------------------
Equitable Accumulator(R)
c/o Bank One, N.A.
300 Harmon Meadow Boulevard, 3rd Floor
Attn: Box 13014
Secaucus, NJ 07094
- --------------------------------------------------------------------------------
FOR ALL OTHER COMMUNICATIONS (E.G., REQUESTS FOR TRANSFERS, WITHDRAWALS, OR
REQUIRED NOTICES) SENT BY REGULAR MAIL:
- --------------------------------------------------------------------------------
Equitable Accumulator(R)
P.O. Box 1547
Secaucus, NJ 07096-1547
- --------------------------------------------------------------------------------
FOR ALL OTHER COMMUNICATIONS (E.G., REQUESTS FOR TRANSFERS, WITHDRAWALS, OR
REQUIRED NOTICES) SENT BY EXPRESS DELIVERY:
- --------------------------------------------------------------------------------
Equitable Accumulator(R)
200 Plaza Drive, 4th Floor
Secaucus, NJ 07094
- --------------------------------------------------------------------------------
REPORTS WE PROVIDE:
- --------------------------------------------------------------------------------
o written confirmation of financial transactions;
o statement of your contract values at the close of each calendar year and any
calendar quarter in which there was a financial transaction; and
o annual statement of your contract values as of the close of the contract
year, including notification of eligibility to exercise the guaranteed
minimum income benefit, if applicable.
- --------------------------------------------------------------------------------
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 investment
options;
o change your TOPS personal identification number (PIN) (not available through
EQAccess); and
x00776 - Smith Barney
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 1-888-909-7770. Clients may use EQAccess by
visiting our web site at http:// www.equitable.com. 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 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
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" in your Prospectus).
- --------------------------------------------------------------------------------
CUSTOMER SERVICE REPRESENTATIVE:
- --------------------------------------------------------------------------------
You may also use our toll-free number (1-800-789-7771) to speak with one of our
customer service representatives. Our customer service representatives are
available on any business day from 8:30 a.m. until 5:30 p.m., Eastern Time.
(2) COMBINATION OF CERTAIN INVESTMENT OPTIONS
Interests in the AXA Premier VIP Technology investment option (the "surviving
option") of AXA Premier VIP Trust will replace interests in the EQ/Technology
investment option (the "replaced option") of EQ Advisors Trust, and this option
will no longer be available. At the time of the replacement, all the assets
that are in the replaced option are moved into the surviving option. After the
replacement, any allocation elections to the replaced option will then be
considered as allocation elections to the surviving option. The effective date
for the replacement of the EQ/Technology investment option will be on or about
May 14, 2004, subject to shareholder approval.
- --------------------------------------------------------------------------------
Variable investment options
- --------------------------------------------------------------------------------
o AXA Aggressive Allocation(1) o EQ/Bernstein Diversified Value
o AXA Conservative Allocation(1) o EQ/Calvert Socially Responsible
o AXA Conservative-Plus Allocation(1) o EQ/Capital Guardian International
o AXA Moderate Allocation(1) o EQ/Capital Guardian Research
o AXA Moderate-Plus Allocation(1) o EQ/Capital Guardian U.S. Equity
o AXA Premier VIP Aggressive Equity o EQ/Emerging Markets Equity
o AXA Premier VIP Core Bond o EQ/Equity 500 Index
o AXA Premier VIP Health Care o EQ/Evergreen Omega
o AXA Premier VIP High Yield o EQ/FI Mid Cap
o AXA Premier VIP International Equity o EQ/FI Small/Mid Cap Value
o AXA Premier VIP Large Cap Core o EQ/J.P. Morgan Core Bond
Equity o EQ/Janus Large Cap Growth
o AXA Premier VIP Large Cap Growth o EQ/Lazard Small Cap Value
o AXA Premier VIP Large Cap Value o EQ/Marsico Focus
o AXA Premier VIP Small/Mid Cap o EQ/Mercury Basic Value Equity
Growth o EQ/Mercury International Value
o AXA Premier VIP Small/Mid Cap Value o EQ/MFS Emerging Growth Companies
o AXA Premier VIP Technology o EQ/MFS Investors Trust
o EQ/Alliance Common Stock o EQ/Money Market
o EQ/Alliance Growth and Income o EQ/Putnam Growth & Income Value
o EQ/Alliance Intermediate Government o EQ/Putnam Voyager
Securities o EQ/Small Company Index
o EQ/Alliance International o EQ/Technology
o EQ/Alliance Premier Growth o Laudus Rosenberg VIT Value Long/
o EQ/Alliance Quality Bond Short Equity(2)(3)
o EQ/Alliance Small Cap Growth o U.S. Real Estate -- Class II(3)
(1) The "AXA Allocation" portfolios.
(2) Formerly named "AXA Rosenberg VIT Value Long/Short Equity."
(3) Not available in all contracts.
2
(3) INVESTMENT OPTIONS
Portfolios of the Trusts
You should note that some portfolios have objectives and strategies that are
substantially similar to those of certain retail funds that are purchased
directly rather than under a variable insurance product such as an
Accumulator(R) series variable annuity. These funds may even have the same man-
ager(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.
Equitable Life serves as the investment manager of the Portfolios of the EQ
Advisors Trust and the AXA Premier VIP Trust. 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. The
advisers for these Portfolios, listed in the chart below, are those who make the
investment decisions for each Portfolio. The chart also indicates the investment
manager for each of the other Portfolios. Not all of the Portfolios listed below
are available in all the contracts to which this supplement applies.
- ------------------------------------------------------------------------------------------------------------------------------------
AXA Premier VIP Trust
Portfolio Name Objective Adviser
- ------------------------------------------------------------------------------------------------------------------------------------
AXA AGGRESSIVE ALLOCATION Seeks long-term capital appreciation. o Equitable Life
- ------------------------------------------------------------------------------------------------------------------------------------
AXA CONSERVATIVE ALLOCATION Seeks a high level of current income. o Equitable Life
- ------------------------------------------------------------------------------------------------------------------------------------
AXA CONSERVATIVE-PLUS Seeks current income and growth of o Equitable Life
ALLOCATION capital, with a greater emphasis on
current income.
- ------------------------------------------------------------------------------------------------------------------------------------
AXA MODERATE ALLOCATION Seeks long-term capital appreciation o Equitable Life
and current income.
- ------------------------------------------------------------------------------------------------------------------------------------
AXA MODERATE-PLUS Seeks long-term capital appreciation o Equitable Life
ALLOCATION and current income, with a greater
emphasis on capital appreciation.
- ------------------------------------------------------------------------------------------------------------------------------------
AXA PREMIER VIP AGGRESSIVE Seeks long-term growth of capital. o Alliance Capital Management L.P.
GROWTH EQUITY
o MFS Investment Management
o Marsico Capital Management, LLC
o Provident Investment Counsel, Inc.
- ------------------------------------------------------------------------------------------------------------------------------------
AXA PREMIER VIP CORE BOND Seeks a balance of high current o BlackRock Advisors, Inc.
income and capital appreciation,
consistent with a prudent level of o Pacific Investment Management Company LLC
risk.
- ------------------------------------------------------------------------------------------------------------------------------------
AXA PREMIER VIP HEALTH CARE Seeks long-term growth of capital. o A I M Capital Management, Inc.
o RCM Capital Management LLC
o Wellington Management Company, LLP
- ------------------------------------------------------------------------------------------------------------------------------------
AXA PREMIER VIP HIGH YIELD Seeks high total return through a o Alliance Capital Management LP
combination of current income and
capital appreciation. o Pacific Investment Management Company LLC
- ------------------------------------------------------------------------------------------------------------------------------------
AXA PREMIER VIP Seeks long-term growth of capital. o Alliance Capital Management L.P., through its
INTERNATIONAL EQUITY Bernstein Investment Research and Management
Unit
o Bank of Ireland Asset Management (U.S.) Limited
o Marsico Capital Management, LLC
- ------------------------------------------------------------------------------------------------------------------------------------
AXA PREMIER VIP LARGE CAP Seeks long-term growth of capital. o Alliance Capital Management L.P., through its
CORE EQUITY Bernstein Investment Research and Management
Unit
o Janus Capital Management LLC
o Thornburg Investment Management, Inc.
- ------------------------------------------------------------------------------------------------------------------------------------
3
Portfolios of the Trusts (continued)
- ------------------------------------------------------------------------------------------------------------------------------------
AXA Premier VIP Trust
Portfolio Name Objective Adviser(s)
- ------------------------------------------------------------------------------------------------------------------------------------
AXA PREMIER VIP LARGE CAP Seeks long-term growth of capital. o Alliance Capital Management L.P.
GROWTH
o RCM Capital Management LLC
o TCW Investment Management Company
- ------------------------------------------------------------------------------------------------------------------------------------
AXA PREMIER VIP LARGE CAP Seeks long-term growth of capital. o Alliance Capital Management L.P.
VALUE
o Institutional Capital Corporation
o MFS Investment Management
- ------------------------------------------------------------------------------------------------------------------------------------
AXA PREMIER VIP SMALL/MID Seeks long-term growth of capital. o Alliance Capital Management L.P.
CAP GROWTH
o Franklin Advisers, Inc.
o Provident Investment Counsel, Inc.
- ------------------------------------------------------------------------------------------------------------------------------------
AXA PREMIER VIP SMALL/MID Seeks long-term growth of capital. o AXA Rosenberg Investment Management LLC
CAP VALUE
o TCW Investment Management Company
o Wellington Management Company, LLP
- ------------------------------------------------------------------------------------------------------------------------------------
AXA PREMIER VIP TECHNOLOGY Seeks long-term growth of capital. o Firsthand Capital Management, Inc.
o RCM Capital Management LLC
o Wellington Management Company, LLP
- ------------------------------------------------------------------------------------------------------------------------------------
EQ Advisors Trust
Portfolio Name Objective Adviser(s)
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/ALLIANCE COMMON STOCK Seeks to achieve long-term growth of capital. o Alliance Capital Management L.P.
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/ALLIANCE GROWTH AND Seeks to provide a high total return. o Alliance Capital Management L.P.
INCOME
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/ALLIANCE INTERMEDIATE Seeks to achieve high current income consistent with o Alliance Capital Management L.P.
GOVERNMENT SECURITIES relative stability of principal.
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/ALLIANCE INTERNATIONAL Seeks to achieve long-term growth of capital. o Alliance Capital Management L.P.
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/ALLIANCE PREMIER GROWTH Seeks to achieve long-term growth of capital. o Alliance Capital Management L.P.
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/ALLIANCE QUALITY BOND Seeks to achieve high current income consistent with o Alliance Capital Management L.P.
moderate risk to capital.
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/ALLIANCE SMALL CAP Seeks to achieve long-term growth of capital. o Alliance Capital Management L.P.
GROWTH
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/BERNSTEIN DIVERSIFIED VALUE Seeks capital appreciation. o Alliance Capital Management L.P.,
through its Bernstein Investment Research
and Management Unit
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/CALVERT SOCIALLY Seeks long-term capital appreciation. o Calvert Asset Management Company, Inc.
RESPONSIBLE and Brown Capital Management, Inc.
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/CAPITAL GUARDIAN To achieve long-term growth of capital. o Capital Guardian Trust Company
INTERNATIONAL
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/CAPITAL GUARDIAN Seeks to achieve long-term growth of capital. o Capital Guardian Trust Company
RESEARCH
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/CAPITAL GUARDIAN U.S. Seeks to achieve long-term growth of capital. o Capital Guardian Trust Company
EQUITY
- ------------------------------------------------------------------------------------------------------------------------------------
4
Portfolios of the Trusts (continued)
- ------------------------------------------------------------------------------------------------------------------------------------
EQ Advisors Trust
Portfolio Name Objective Adviser(s)
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/EMERGING MARKETS EQUITY Seeks long-term capital appreciation. o Morgan Stanley Investment Management, Inc.
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/EQUITY 500 INDEX Seeks a total return before expenses that o 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. o Evergreen Investment Management Company, LLC
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/FI MID CAP Seeks long-term growth of capital. o Fidelity Management & Research Company
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/FI SMALL/MID CAP VALUE Seeks long-term capital appreciation. o Fidelity Management & Research Company
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/J.P. MORGAN CORE BOND Seeks to provide a high total return consistent o J.P. Morgan Investment Management Inc.
with moderate risk to capital and maintenance of
liquidity.
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/JANUS LARGE CAP GROWTH Seeks long-term growth of capital. o Janus Capital Management LLC
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/LAZARD SMALL CAP VALUE Seeks capital appreciation. o Lazard Asset Management, LLC
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/MARSICO FOCUS Seeks long-term growth of capital. o Marsico Capital Management, LLC
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/MERCURY BASIC VALUE Seeks capital appreciation and secondarily, income. o Mercury Advisors
EQUITY
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/MERCURY INTERNATIONAL Seeks capital appreciation. o Merrill Lynch Investment Managers
VALUE International Limited
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/MFS EMERGING GROWTH Seeks to provide long-term capital growth. o MFS Investment Management
COMPANIES
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/MFS INVESTORS TRUST Seeks long-term growth of capital with secondary o MFS Investment Management
objective to seek reasonable current income.
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/MONEY MARKET Seeks to obtain a high level of current income, o Alliance Capital Management L.P.
preserve its assets and maintain liquidity.
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/PUTNAM GROWTH & INCOME Seeks capital growth. Current income is a secondary o Putnam Investment Management, LLC
VALUE objective.
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/PUTNAM VOYAGER Seeks long-term growth of capital and any increased o Putnam Investment Management, LLC
income that results from this growth.
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/SMALL COMPANY INDEX Seeks to replicate as closely as possible (before o Alliance Capital Management L.P.
the deduction of portfolio expenses) the total
return of the Russell 2000 Index.
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/TECHNOLOGY Seeks to achieve long-term growth of capital. o Firsthand Capital Management, Inc.
o RCM Capital Management LLC
o Wellington Management Company, LLP
- ------------------------------------------------------------------------------------------------------------------------------------
Barr Rosenberg Variable
Insurance Trust
Portfolio Name Objective Investment Manager/Adviser
- ------------------------------------------------------------------------------------------------------------------------------------
LAUDUS ROSENBERG VIT VALUE Seeks to increase the value of your investment in o Charles Schwab Investment Management, Inc.
LONG/SHORT EQUITY(1) bull markets and bear markets through strategies
that are designed to have limited exposure to o AXA Rosenberg Investment Management LLC
general equity market risk.
- ------------------------------------------------------------------------------------------------------------------------------------
5
Portfolios of the Trusts (continued)
- ------------------------------------------------------------------------------------------------------------------------------------
The Universal Institutional
Funds, Inc.
Portfolio Name Objective Investment Manager
- ------------------------------------------------------------------------------------------------------------------------------------
U.S. REAL ESTATE -- Class II(1)(2) Seeks to provide above average current income and o Van Kampen(3)
longterm capital appreciation by investing primarily
in equity securities of companies in the U.S. real
estate industry, including real estate investment
trusts.
- ------------------------------------------------------------------------------------------------------------------------------------
(1) Not available in all contracts.
(2) 'Class II' Shares are defined in the current underlying Trust prospectus.
(3) Van Kampen is the name under which Morgan Stanley Investment Management Inc.
does business in certain situations.
You should consider the investment objectives, risks and charges and expenses
of the Portfolios carefully before investing. The prospectuses for the Trusts
contain this and other important information about the Portfolios. The
prospectuses should be read carefully before investing. In order to obtain
copies of Trust prospectuses that do not accompany this supplement, you may
call one of our customer service representatives at 1-800-789-7771.
(4) THE TRUSTS' ANNUAL EXPENSES AND EXPENSE EXAMPLE
The following table shows the lowest and highest total operating expenses
charged by any of the Portfolios that you will pay periodically during the time
that you own the contract. These fees and expenses are reflected in the
Portfolio's net asset value each day. Therefore, they reduce the investment
return of the Portfolio and the related variable investment option. Actual fees
and expenses are likely to fluctuate from year to year. More detail concerning
each Portfolio's fees and expenses is contained in the Trust prospectus for the
Portfolio.
This table shows the fees and expenses for 2003 as an annual percentage of each
Portfolio's daily average net assets.
- --------------------------------------------------------------------------------
Manage-
ment 12b-1 Other
Portfolio Name Fees(2) Fees(3) Expenses (4)
- --------------------------------------------------------------------------------
AXA PREMIER VIP TRUST:
- --------------------------------------------------------------------------------
AXA Aggressive Allocation 0.10% 0.25% 5.91%
AXA Conservative Allocation 0.10% 0.25% 9.04%
AXA Conservative-Plus Allocation 0.10% 0.25% 4.13%
AXA Moderate Allocation 0.10% 0.25% 0.39%
AXA Moderate-Plus Allocation 0.10% 0.25% 1.77%
AXA Premier VIP Aggressive Equity 0.62% 0.25% 0.15%
AXA Premier VIP Core Bond 0.60% 0.25% 0.26%
AXA Premier VIP Health Care 1.20% 0.25% 0.48%
AXA Premier VIP High Yield 0.59% 0.25% 0.16%
AXA Premier VIP International Equity 1.05% 0.25% 0.73%
AXA Premier VIP Large Cap Core Equity 0.90% 0.25% 0.52%
AXA Premier VIP Large Cap Growth 0.90% 0.25% 0.43%
AXA Premier VIP Large Cap Value 0.90% 0.25% 0.43%
AXA Premier VIP Small/Mid Cap Growth 1.10% 0.25% 0.35%
AXA Premier VIP Small/Mid Cap Value 1.10% 0.25% 0.31%
AXA Premier VIP Technology 1.20% 0.25% 0.83%
- --------------------------------------------------------------------------------
EQ ADVISORS TRUST:
- --------------------------------------------------------------------------------
EQ/Alliance Common Stock 0.48% 0.25% 0.06%
EQ/Alliance Growth and Income 0.57% 0.25% 0.06%
EQ/Alliance Intermediate Government Securities 0.49% 0.25% 0.08%
EQ/Alliance International 0.74% 0.25% 0.13%
EQ/Alliance Premier Growth 0.90% 0.25% 0.05%
EQ/Alliance Quality Bond 0.52% 0.25% 0.06%
EQ/Alliance Small Cap Growth 0.75% 0.25% 0.07%
EQ/Bernstein Diversified Value 0.64% 0.25% 0.06%
EQ/Calvert Socially Responsible 0.65% 0.25% 0.55%
EQ/Capital Guardian International 0.85% 0.25% 0.21%
EQ/Capital Guardian Research 0.65% 0.25% 0.07%
- --------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------------
Total Net Total
Annual Fee Waiv- Annual
Underlying Expenses ers and/or Expenses
Portfolio (Before Expense After
Fees and Expense Reimburse- Expense
Portfolio Name Expenses(5) Limitation) ments(6) Limitations
- -----------------------------------------------------------------------------------------------------
AXA PREMIER VIP TRUST:
- -----------------------------------------------------------------------------------------------------
AXA Aggressive Allocation 1.08% 7.34% (5.98)% 1.36%
AXA Conservative Allocation 0.84% 10.23% (9.13)% 1.10%
AXA Conservative-Plus Allocation 0.88% 5.36% (4.21)% 1.15%
AXA Moderate Allocation 0.86% 1.60% (0.43)% 1.17%
AXA Moderate-Plus Allocation 1.13% 3.25% (1.87)% 1.38%
AXA Premier VIP Aggressive Equity -- 1.02% -- 1.02%
AXA Premier VIP Core Bond -- 1.11% (0.16)% 0.95%
AXA Premier VIP Health Care -- 1.93% (0.08)% 1.85%
AXA Premier VIP High Yield -- 1.00% -- 1.00%
AXA Premier VIP International Equity -- 2.03% (0.23)% 1.80%
AXA Premier VIP Large Cap Core Equity -- 1.67% (0.32)% 1.35%
AXA Premier VIP Large Cap Growth -- 1.58% (0.23)% 1.35%
AXA Premier VIP Large Cap Value -- 1.58% (0.23)% 1.35%
AXA Premier VIP Small/Mid Cap Growth -- 1.70% (0.10)% 1.60%
AXA Premier VIP Small/Mid Cap Value -- 1.66% (0.06)% 1.60%
AXA Premier VIP Technology -- 2.28% (0.43)% 1.85%
- -----------------------------------------------------------------------------------------------------
EQ ADVISORS TRUST:
- -----------------------------------------------------------------------------------------------------
EQ/Alliance Common Stock -- 0.79% -- 0.79%
EQ/Alliance Growth and Income -- 0.88% -- 0.88%
EQ/Alliance Intermediate Government Securities -- 0.82% -- 0.82%
EQ/Alliance International -- 1.12% (0.02)% 1.10%
EQ/Alliance Premier Growth -- 1.20% (0.04)% 1.16%
EQ/Alliance Quality Bond -- 0.83% -- 0.83%
EQ/Alliance Small Cap Growth -- 1.07% -- 1.07%
EQ/Bernstein Diversified Value -- 0.95% 0.00% 0.95%
EQ/Calvert Socially Responsible -- 1.45% (0.40)% 1.05%
EQ/Capital Guardian International -- 1.31% (0.11)% 1.20%
EQ/Capital Guardian Research -- 0.97% (0.02)% 0.95%
- -----------------------------------------------------------------------------------------------------
6
Manage-
ment 12b-1 Other
Portfolio Name Fees(2) Fees(3) Expenses (4)
- --------------------------------------------------------------------------------
EQ ADVISORS TRUST:
- --------------------------------------------------------------------------------
EQ/Capital Guardian U.S. Equity 0.65% 0.25% 0.07%
EQ/Emerging Markets Equity 1.15% 0.25% 0.40%
EQ/Equity 500 Index 0.25% 0.25% 0.06%
EQ/Evergreen Omega 0.65% 0.25% 0.25%
EQ/FI Mid Cap 0.70% 0.25% 0.08%
EQ/FI Small/Mid Cap Value 0.75% 0.25% 0.10%
EQ/Janus Large Cap Growth 0.90% 0.25% 0.09%
EQ/J.P. Morgan Core Bond 0.44% 0.25% 0.08%
EQ/Lazard Small Cap Value 0.75% 0.25% 0.10%
EQ/Marsico Focus 0.90% 0.25% 0.07%
EQ/Mercury Basic Value Equity 0.60% 0.25% 0.07%
EQ/Mercury International Value 0.85% 0.25% 0.16%
EQ/MFS Emerging Growth Companies 0.65% 0.25% 0.07%
EQ/MFS Investors Trust 0.60% 0.25% 0.11%
EQ/Money Market 0.33% 0.25% 0.06%
EQ/Putnam Growth & Income Value 0.60% 0.25% 0.10%
EQ/Putnam Voyager 0.65% 0.25% 0.13%
EQ/Small Company Index 0.25% 0.25% 0.35%
EQ/Technology 0.90% 0.25% 0.09%
- --------------------------------------------------------------------------------
BARR ROSENBERG VARIABLE INSURANCE TRUST:
- --------------------------------------------------------------------------------
Laudus Rosenberg VIT Value Long/Short Equity 1.50% 0.25% 5.80%
- --------------------------------------------------------------------------------
THE UNIVERSAL INSTITUTIONAL FUNDS, INC.:
- --------------------------------------------------------------------------------
U.S. Real Estate - Class II 0.80% 0.35% 0.31%
- --------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------------
Total Net Total
Annual Fee Waiv- Annual
Underlying Expenses ers and/or Expenses
Portfolio (Before Expense After
Fees and Expense Reimburse- Expense
Portfolio Name Expenses(5) Limitation) ments(6) Limitations
- -----------------------------------------------------------------------------------------------------
EQ ADVISORS TRUST:
- -----------------------------------------------------------------------------------------------------
EQ/Capital Guardian U.S. Equity -- 0.97% (0.02)% 0.95%
EQ/Emerging Markets Equity -- 1.80% 0.00% 1.80%
EQ/Equity 500 Index -- 0.56% -- 0.56%
EQ/Evergreen Omega -- 1.15% (0.20)% 0.95%
EQ/FI Mid Cap -- 1.03% (0.03)% 1.00%
EQ/FI Small/Mid Cap Value -- 1.10% 0.00% 1.10%
EQ/Janus Large Cap Growth -- 1.24% (0.09)% 1.15%
EQ/J.P. Morgan Core Bond -- 0.77% 0.00% 0.77%
EQ/Lazard Small Cap Value -- 1.10% 0.00% 1.10%
EQ/Marsico Focus -- 1.22% (0.07)% 1.15%
EQ/Mercury Basic Value Equity -- 0.92% 0.00% 0.92%
EQ/Mercury International Value -- 1.26% (0.01)% 1.25%
EQ/MFS Emerging Growth Companies -- 0.97% -- 0.97%
EQ/MFS Investors Trust -- 0.96% (0.01)% 0.95%
EQ/Money Market -- 0.64% -- 0.64%
EQ/Putnam Growth & Income Value -- 0.95% 0.00% 0.95%
EQ/Putnam Voyager -- 1.03% (0.08)% 0.95%
EQ/Small Company Index -- 0.85% 0.00% 0.85%
EQ/Technology -- 1.24% (0.09)% 1.15%
- -----------------------------------------------------------------------------------------------------
BARR ROSENBERG VARIABLE INSURANCE TRUST:
- -----------------------------------------------------------------------------------------------------
Laudus Rosenberg VIT Value Long/Short Equity -- 7.55% (4.57)% 2.98%
- -----------------------------------------------------------------------------------------------------
THE UNIVERSAL INSTITUTIONAL FUNDS, INC.:
- -----------------------------------------------------------------------------------------------------
U.S. Real Estate - Class II -- 1.46% (0.11)% 1.35%
- -----------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Portfolio operating expenses expressed as an annual percentage of daily
net assets
- --------------------------------------------------------------------------------
Total Annual Portfolio Operating Expenses for 2003 Lowest Highest
(expenses that are deducted from Portfolio assets ------ -------
including management fees, 12b-1 fees, service .56% 10.23%
fees, and/or other expenses)(1)
(1) "Total Annual Portfolio Operating Expenses" are based, in part, on
estimated amounts for options added during the fiscal year 2003 and for the
underlying portfolios.
(2) The management fees for each Portfolio cannot be increased without a vote
of that Portfolio's Shareholders. See Footnote (6) for any expense
limitation agreement information.
(3) 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) Other expenses shown are those incurred in 2003. The amounts shown as
"Other Expenses" will fluctuate from year to year depending on actual
expenses. See footnote (6) for any expense limitation agreement
information.
(5) The AXA Allocation variable investment options invest in corresponding
portfolios of the AXA Premier VIP Trust. Each AXA Allocation portfolio in
turn invests in shares of other portfolios of the EQ Advisors Trust and AXA
Premier VIP Trust ("the underlying portfolios"). Amounts shown reflect each
AXA Allocation portfolios's pro rata share of the fees and expenses of the
various underlying portfolios in which it invests. The fees and expenses
have been estimated based on the respective weighted investment allocations
as of 12/31/03. A "-" indicates that the listed portfolio does not invest
in underlying portfolios, i.e., it is not an allocation portfolio.
(6) The amounts shown reflect any fee waivers and/or expense reimbursements
that applied to each Portfolio. A "-" indicates that there is no expense
limitation in effect. "0.00%" indicates that the expense limitation
arrangement did not result in a fee waiver or reimbursement. Equi table
Life, the investment manager of AXA Premier VIP Trust and EQ Advisors
Trust, has entered into Expense Limitation Agreements with respect to
certain Portfolios, which are effective through April 30, 2005. Under these
agreements Equitable Life has agreed to waive or limit its fees and assume
other expenses of certain Portfolios, if necessary, in an amount that
limits each affected Portfolio's total Annual Expenses (exclusive of
interest, taxes, brokerage commissions, capitalized expenditures and
extraordinary expenses) to not more than specified amounts. 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
7
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.
Morgan Stanley Investment Management Inc., which does business in certain
instances as "Van Kampen," is the manager of The Universal Institutional
Funds, Inc. -- U.S. Real Estate Portfolio -- Class II, and has voluntarily
agreed to reduce its management fee and/or reimburse the Portfolio so that
total annual operating expenses of the Portfolio (exclusive of investment
related expenses, such as foreign country tax expense and interest expense
on amounts borrowed) are not more than specified amounts. Van Kampen
reserves the right to terminate any waiver and/or reimbursement at any time
without notice. Charles Schwab Investment Management, Inc. the manager of
the Barr Rosenberg Variable Insurance Trust -- Laudus Rosenberg VIT Value
Long/Short Equity Portfolio, has voluntarily agreed to reimburse expenses
in excess of specified amounts. See the prospectus for each applicable
underlying Trust for more information about the arrangements. In addition,
a portion of the brokerage commissions of certain portfolios of EQ Advisors
Trust and AXA Premier VIP Trust is used to reduce the applicable
Portfolio's expenses. If the above table reflected both the expense
limitation arrangements plus the portion of the brokerage commissions used
to reduce portfolio expenses, the net expenses would be as shown in the
table below:
- -----------------------------------------------
Portfolio Name
- -----------------------------------------------
AXA Aggressive Allocation 0.95%
AXA Conservative Allocation 0.73%
AXA Conservative-Plus Allocation 0.78%
AXA Moderate Allocation 0.79%
AXA Moderate-Plus Allocation 0.99%
AXA Premier VIP Aggressive Equity 0.95%
AXA Premier VIP Health Care 1.84%
AXA Premier VIP International Equity 1.73%
AXA Premier VIP Large Cap Core Equity 1.32%
AXA Premier VIP Large Cap Growth 1.32%
AXA Premier VIP Large Cap Value 1.28%
AXA Premier VIP Small/Mid Cap Growth 1.46%
AXA Premier VIP Small/Mid Cap Value 1.52%
AXA Premier VIP Technology 1.70%
EQ/Alliance Common Stock 0.77%
EQ/Alliance Growth and Income 0.85%
EQ/Alliance Premier Growth 1.15%
EQ/Alliance Small Cap Growth 1.03%
EQ/Calvert Socially Responsible 1.00%
EQ/Capital Guardian International 1.18%
EQ/Capital Guardian Research 0.93%
EQ/Capital Guardian U.S. Equity 0.93%
EQ/Emerging Markets Equity 1.78%
EQ/Evergreen Omega 0.84%
EQ/FI Mid Cap 0.88%
EQ/FI Small/Mid Cap Value 1.04%
EQ/Lazard Small Cap Value 1.00%
EQ/Marsico Focus 1.10%
EQ/Mercury Basic Value Equity 0.91%
EQ/Mercury International Value 1.18%
EQ/MFS Emerging Growth Companies 0.96%
EQ/MFS Investors Trust 0.94%
EQ/Putnam Growth & Income Value 0.93%
EQ/Putnam Voyager 0.93%
EQ/Technology 1.01%
- -----------------------------------------------
EXAMPLE
This example is intended to help you compare the cost of investing in the
contract with the cost of investing in other variable annuity contracts. These
costs include contract owner transaction expenses, contract fees, separate
account annual expenses, and underlying trust fees and expenses.
The example below shows the expenses that a hypothetical contract owner (who
has elected the Guaranteed Minimum Income Benefit with the enhanced death
benefit that provides for the greater of the 6% Roll-up or the Annual Ratchet
to age 85 and Protection Plus) would pay in the situations illustrated. 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 $2.10 per $10,000. Some of these features may
not be available or may be different under your contract. Some of these charges
may not be applicable under your contract.
The fixed maturity options, guaranteed interest option and the account for
special dollar cost averaging are not covered by the fee table and examples.
However, the annual administrative charge, the charge if you elect a Variable
Immediate Annuity payout option, the charge for any
8
optional benefits and the withdrawal charge do apply to the fixed maturity
options, guaranteed interest option and the account for special dollar cost
averaging. 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.
Some of these investment options and charges may not be applicable under your
contract.
The example assumes that you invest $10,000 in the contract for the time
periods indicated. The example also assumes that your investment has a 5%
return each year. This example 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 example
is not an estimate or guarantee of future investment performance. Although your
actual costs may be higher or lower, based on these assumptions, your costs
would be:
9
- ------------------------------------------------------------------------------------------------------------
If you surrender your contract at the end
of the applicable time period
-----------------------------------------------------------
Portfolio Name 1 year 3 years 5 years 10 years
- ------------------------------------------------------------------------------------------------------------
AXA PREMIER VIP TRUST:
- ------------------------------------------------------------------------------------------------------------
AXA Aggressive Allocation $ 1,938.01 $ 3,961.13 $ 5,796.47 $ 9,326.64
AXA Conservative Allocation $ 2,253.10 $ 4,736.29 $ 6,842.80 $ 10,461.71
AXA Conservative-Plus Allocation $ 1,721.56 $ 3,397.79 $ 4,989.19 $ 8,279.35
AXA Moderate Allocation $ 1,312.50 $ 2,258.97 $ 3,241.25 $ 5,521.47
AXA Moderate-Plus Allocation $ 1,491.38 $ 2,770.44 $ 4,045.17 $ 6,868.22
AXA Premier VIP Aggressive Equity $ 1,251.23 $ 2,073.57 $ 2,942.34 $ 5,012.96
AXA Premier VIP Core Bond $ 1,260.68 $ 2,102.26 $ 2,988.89 $ 5,093.46
AXA Premier VIP Health Care $ 1,346.96 $ 2,361.65 $ 3,405.07 $ 5,798.30
AXA Premier VIP High Yield $ 1,249.13 $ 2,067.20 $ 2,931.98 $ 4,994.97
AXA Premier VIP International Equity $ 1,357.88 $ 2,392.97 $ 3,454.79 $ 5,884.68
AXA Premier VIP Large Cap Core Equity $ 1,319.47 $ 2,279.90 $ 3,274.74 $ 5,577.28
AXA Premier VIP Large Cap Growth $ 1,310.02 $ 2,251.50 $ 3,229.28 $ 5,501.47
AXA Premier VIP Large Cap Value $ 1,310.02 $ 2,251.50 $ 3,229.28 $ 5,501.47
AXA Premier VIP Small/Mid Cap Growth $ 1,322.62 $ 2,289.36 $ 3,289.86 $ 5,602.39
AXA Premier VIP Small/Mid Cap Value $ 1,318.42 $ 2,276.75 $ 3,269.70 $ 5,568.89
AXA Premier VIP Technology $ 1,385.17 $ 2,470.97 $ 3,578.14 $ 6,096.56
- ------------------------------------------------------------------------------------------------------------
EQ ADVISORS TRUST:
- ------------------------------------------------------------------------------------------------------------
EQ/Alliance Common Stock $ 1,227.08 $ 2,000.14 $ 2,822.68 $ 4,803.72
EQ/Alliance Growth and Income $ 1,236.53 $ 2,028.92 $ 2,869.65 $ 4,886.20
EQ/Alliance Intermediate Government Securities $ 1,230.23 $ 2,009.74 $ 2,838.36 $ 4,831.30
EQ/Alliance International $ 1,261.73 $ 2,105.45 $ 2,994.06 $ 5,102.35
EQ/Alliance Premier Growth $ 1,270.13 $ 2,130.96 $ 3,035.31 $ 5,173.19
EQ/Alliance Quality Bond $ 1,231.28 $ 2,012.94 $ 2,843.58 $ 4,840.47
EQ/Alliance Small Cap Growth $ 1,256.48 $ 2,089.49 $ 2,968.20 $ 5,057.78
EQ/Bernstein Diversified Value $ 1,243.88 $ 2,051.26 $ 2,906.05 $ 4,949.82
EQ/Calvert Socially Responsible $ 1,296.37 $ 2,210.37 $ 3,163.29 $ 5,390.66
EQ/Capital Guardian International $ 1,281.67 $ 2,165.95 $ 3,091.79 $ 5,269.59
EQ/Capital Guardian Research $ 1,245.98 $ 2,057.64 $ 2,916.43 $ 4,967.91
EQ/Capital Guardian U.S. Equity $ 1,245.98 $ 2,057.64 $ 2,916.43 $ 4,967.91
EQ/Emerging Markets Equity $ 1,333.12 $ 2,320.83 $ 3,340.09 $ 5,685.49
EQ/Equity 500 Index $ 1,202.94 $ 1,926.36 $ 2,701.81 $ 4,589.30
EQ/Evergreen Omega $ 1,264.88 $ 2,115.02 $ 3,009.54 $ 5,128.99
EQ/FI Mid Cap $ 1,252.28 $ 2,076.75 $ 2,947.52 $ 5,021.94
EQ/FI Small/Mid Cap Value $ 1,259.63 $ 2,099.07 $ 2,983.72 $ 5,084.55
EQ/J.P. Morgan Core Bond $ 1,224.98 $ 1,993.74 $ 2,812.22 $ 4,785.28
EQ/Janus Large Cap Growth $ 1,274.33 $ 2,143.69 $ 3,055.88 $ 5,208.37
EQ/Lazard Small Cap Value $ 1,259.63 $ 2,099.07 $ 2,983.72 $ 5,084.55
EQ/Marsico Focus $ 1,272.23 $ 2,137.33 $ 3,045.60 $ 5,190.80
EQ/Mercury Basic Value Equity $ 1,240.73 $ 2,041.69 $ 2,890.46 $ 4,922.61
EQ/Mercury International Value $ 1,276.43 $ 2,150.05 $ 3,066.15 $ 5,225.91
EQ/MFS Emerging Growth Companies $ 1,245.98 $ 2,057.64 $ 2,916.43 $ 4,967.91
- ------------------------------------------------------------------------------------------------------------
If you annuitize at the end
of the applicable time period
-----------------------------------------------------------
Portfolio Name 1 year 3 years 5 years 10 years
- ------------------------------------------------------------------------------------------------------------
AXA PREMIER VIP TRUST:
- ------------------------------------------------------------------------------------------------------------
AXA Aggressive Allocation $ 1,488.01 $ 3,611.13 $ 5,546.47 $ 9,676.64
AXA Conservative Allocation $ 1,803.10 $ 4,386.29 $ 6,592.80 $ 10,811.71
AXA Conservative-Plus Allocation $ 1,271.56 $ 3,047.79 $ 4,739.19 $ 8,629.35
AXA Moderate Allocation $ 867.25 $ 1,923.76 $ 3,010.77 $ 5,871.47
AXA Moderate-Plus Allocation $ 1,041.38 $ 2,420.44 $ 3,795.17 $ 7,218.22
AXA Premier VIP Aggressive Equity $ 805.97 $ 1,746.28 $ 2,726.09 $ 5,362.96
AXA Premier VIP Core Bond $ 815.42 $ 1,773.79 $ 2,770.46 $ 5,443.46
AXA Premier VIP Health Care $ 901.51 $ 2,022.03 $ 3,166.76 $ 6,148.30
AXA Premier VIP High Yield $ 803.87 $ 1,740.15 $ 2,716.20 $ 5,344.97
AXA Premier VIP International Equity $ 912.01 $ 2,052.00 $ 3,214.10 $ 6,234.68
AXA Premier VIP Large Cap Core Equity $ 874.21 $ 1,943.80 $ 3,042.66 $ 5,927.28
AXA Premier VIP Large Cap Growth $ 864.76 $ 1,916.61 $ 2,999.37 $ 5,851.47
AXA Premier VIP Large Cap Value $ 864.76 $ 1,916.61 $ 2,999.37 $ 5,851.47
AXA Premier VIP Small/Mid Cap Growth $ 877.36 $ 1,952.85 $ 3,057.05 $ 5,952.39
AXA Premier VIP Small/Mid Cap Value $ 873.16 $ 1,940.78 $ 3,037.86 $ 5,918.89
AXA Premier VIP Technology $ 938.25 $ 2,126.65 $ 3,331.55 $ 6,446.56
- ------------------------------------------------------------------------------------------------------------
EQ ADVISORS TRUST:
- ------------------------------------------------------------------------------------------------------------
EQ/Alliance Common Stock $ 781.82 $ 1,675.72 $ 2,611.87 $ 5,153.72
EQ/Alliance Growth and Income $ 791.27 $ 1,703.37 $ 2,656.70 $ 5,236.20
EQ/Alliance Intermediate Government Securities $ 784.97 $ 1,684.94 $ 2,626.83 $ 5,181.30
EQ/Alliance International $ 816.47 $ 1,776.84 $ 2,775.38 $ 5,452.35
EQ/Alliance Premier Growth $ 824.87 $ 1,801.25 $ 2,814.67 $ 5,523.19
EQ/Alliance Quality Bond $ 786.02 $ 1,688.01 $ 2,631.82 $ 5,190.47
EQ/Alliance Small Cap Growth $ 811.22 $ 1,761.57 $ 2,750.76 $ 5,407.78
EQ/Bernstein Diversified Value $ 798.62 $ 1,724.84 $ 2,691.45 $ 5,299.82
EQ/Calvert Socially Responsible $ 851.11 $ 1,877.25 $ 2,936.53 $ 5,740.66
EQ/Capital Guardian International $ 836.42 $ 1,834.74 $ 2,868.45 $ 5,619.59
EQ/Capital Guardian Research $ 800.72 $ 1,730.97 $ 2,701.35 $ 5,317.91
EQ/Capital Guardian U.S. Equity $ 800.72 $ 1,730.97 $ 2,701.35 $ 5,317.91
EQ/Emerging Markets Equity $ 887.86 $ 1,982.97 $ 3,104.89 $ 6,035.49
EQ/Equity 500 Index $ 757.67 $ 1,604.81 $ 2,496.49 $ 4,939.30
EQ/Evergreen Omega $ 819.62 $ 1,786.00 $ 2,790.13 $ 5,478.99
EQ/FI Mid Cap $ 807.02 $ 1,749.34 $ 2,731.03 $ 5,371.94
EQ/FI Small/Mid Cap Value $ 814.37 $ 1,770.74 $ 2,765.54 $ 5,434.55
EQ/J.P. Morgan Core Bond $ 779.72 $ 1,669.57 $ 2,601.88 $ 5,135.28
EQ/Janus Large Cap Growth $ 829.07 $ 1,813.44 $ 2,834.26 $ 5,558.37
EQ/Lazard Small Cap Value $ 814.37 $ 1,770.74 $ 2,765.54 $ 5,434.55
EQ/Marsico Focus $ 826.97 $ 1,807.35 $ 2,824.47 $ 5,540.80
EQ/Mercury Basic Value Equity $ 795.47 $ 1,715.64 $ 2,676.57 $ 5,272.61
EQ/Mercury International Value $ 831.17 $ 1,819.53 $ 2,844.04 $ 5,575.91
EQ/MFS Emerging Growth Companies $ 800.72 $ 1,730.97 $ 2,701.35 $ 5,317.91
- ------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------
If you do not surrender your contract at the end
of the applicable time period
-----------------------------------------------------------
Portfolio Name 1 year 3 years 5 years 10 years
- ------------------------------------------------------------------------------------------------------------
AXA PREMIER VIP TRUST:
- ------------------------------------------------------------------------------------------------------------
AXA Aggressive Allocation $ 1,138.01 $ 3,261.13 $ 5,196.47 $ 9,326.64
AXA Conservative Allocation $ 1,453.10 $ 4,036.29 $ 6,242.80 $ 10,461.71
AXA Conservative-Plus Allocation $ 921.56 $ 2,697.79 $ 4,389.19 $ 8,279.35
AXA Moderate Allocation $ 517.25 $ 1,573.76 $ 2,660.77 $ 5,521.47
AXA Moderate-Plus Allocation $ 691.38 $ 2,070.44 $ 3,445.17 $ 6,868.22
AXA Premier VIP Aggressive Equity $ 455.97 $ 1,396.28 $ 2,376.09 $ 5,012.96
AXA Premier VIP Core Bond $ 465.42 $ 1,423.79 $ 2,420.46 $ 5,093.46
AXA Premier VIP Health Care $ 551.51 $ 1,672.03 $ 2,816.76 $ 5,798.30
AXA Premier VIP High Yield $ 453.87 $ 1,390.15 $ 2,366.20 $ 4,994.97
AXA Premier VIP International Equity $ 562.01 $ 1,702.00 $ 2,864.10 $ 5,884.68
AXA Premier VIP Large Cap Core Equity $ 524.21 $ 1,593.80 $ 2,692.66 $ 5,577.28
AXA Premier VIP Large Cap Growth $ 514.76 $ 1,566.61 $ 2,649.37 $ 5,501.47
AXA Premier VIP Large Cap Value $ 514.76 $ 1,566.61 $ 2,649.37 $ 5,501.47
AXA Premier VIP Small/Mid Cap Growth $ 527.36 $ 1,602.85 $ 2,707.05 $ 5,602.39
AXA Premier VIP Small/Mid Cap Value $ 523.16 $ 1,590.78 $ 2,687.86 $ 5,568.89
AXA Premier VIP Technology $ 588.25 $ 1,776.65 $ 2,981.55 $ 6,096.56
- ------------------------------------------------------------------------------------------------------------
EQ ADVISORS TRUST:
- ------------------------------------------------------------------------------------------------------------
EQ/Alliance Common Stock $ 431.82 $ 1,325.72 $ 2,261.87 $ 4,803.72
EQ/Alliance Growth and Income $ 441.27 $ 1,353.37 $ 2,306.70 $ 4,886.20
EQ/Alliance Intermediate Government Securities $ 434.97 $ 1,334.94 $ 2,276.83 $ 4,831.30
EQ/Alliance International $ 466.47 $ 1,426.84 $ 2,425.38 $ 5,102.35
EQ/Alliance Premier Growth $ 474.87 $ 1,451.25 $ 2,464.67 $ 5,173.19
EQ/Alliance Quality Bond $ 436.02 $ 1,338.01 $ 2,281.82 $ 4,840.47
EQ/Alliance Small Cap Growth $ 461.22 $ 1,411.57 $ 2,400.76 $ 5,057.78
EQ/Bernstein Diversified Value $ 448.62 $ 1,374.84 $ 2,341.45 $ 4,949.82
EQ/Calvert Socially Responsible $ 501.11 $ 1,527.25 $ 2,586.53 $ 5,390.66
EQ/Capital Guardian International $ 486.42 $ 1,484.74 $ 2,518.45 $ 5,269.59
EQ/Capital Guardian Research $ 450.72 $ 1,380.97 $ 2,351.35 $ 4,967.91
EQ/Capital Guardian U.S. Equity $ 450.72 $ 1,380.97 $ 2,351.35 $ 4,967.91
EQ/Emerging Markets Equity $ 537.86 $ 1,632.97 $ 2,754.89 $ 5,685.49
EQ/Equity 500 Index $ 407.67 $ 1,254.81 $ 2,146.49 $ 4,589.30
EQ/Evergreen Omega $ 469.62 $ 1,436.00 $ 2,440.13 $ 5,128.99
EQ/FI Mid Cap $ 457.02 $ 1,399.34 $ 2,381.03 $ 5,021.94
EQ/FI Small/Mid Cap Value $ 464.37 $ 1,420.74 $ 2,415.54 $ 5,084.55
EQ/J.P. Morgan Core Bond $ 429.72 $ 1,319.57 $ 2,251.88 $ 4,785.28
EQ/Janus Large Cap Growth $ 479.07 $ 1,463.44 $ 2,484.26 $ 5,208.37
EQ/Lazard Small Cap Value $ 464.37 $ 1,420.74 $ 2,415.54 $ 5,084.55
EQ/Marsico Focus $ 476.97 $ 1,457.35 $ 2,474.47 $ 5,190.80
EQ/Mercury Basic Value Equity $ 445.47 $ 1,365.64 $ 2,326.57 $ 4,922.61
EQ/Mercury International Value $ 481.17 $ 1,469.53 $ 2,494.04 $ 5,225.91
EQ/MFS Emerging Growth Companies $ 450.72 $ 1,380.97 $ 2,351.35 $ 4,967.91
- ------------------------------------------------------------------------------------------------------------
10
- ---------------------------------------------------------------------------------------------------------
If you surrender your contract at the end
of the applicable time period
-----------------------------------------------------------
Portfolio Name 1 year 3 years 5 years 10 years
- ---------------------------------------------------------------------------------------------------------
EQ ADVISORS TRUST
- ---------------------------------------------------------------------------------------------------------
EQ/MFS Investors Trust $ 1,244.93 $ 2,054.45 $ 2,911.24 $ 4,958.87
EQ/Money Market $ 1,211.34 $ 1,952.06 $ 2,743.99 $ 4,664.47
EQ/Putnam Growth & Income Value $ 1,243.88 $ 2,051.26 $ 2,906.05 $ 4,949.82
EQ/Putnam Voyager $ 1,252.28 $ 2,076.75 $ 2,947.52 $ 5,021.94
EQ/Small Company Index $ 1,233.38 $ 2,019.33 $ 2,854.01 $ 4,858.80
EQ/Technology $ 1,274.33 $ 2,143.69 $ 3,055.88 $ 5,208.37
- ---------------------------------------------------------------------------------------------------------
BARR ROSENBERG VARIABLE INSURANCE TRUST:
- ---------------------------------------------------------------------------------------------------------
Laudus Rosenberg VIT Value Long/Short Equity $ 1,960.56 $ 4,018.36 $ 5,876.30 $ 9,422.13
- ---------------------------------------------------------------------------------------------------------
THE UNIVERSAL INSTITUTIONAL FUNDS, INC.:
- ---------------------------------------------------------------------------------------------------------
U.S. Real Estate -- Class II $ 1,297.42 $ 2,213.54 $ 3,168.37 $ 5,399.24
- ---------------------------------------------------------------------------------------------------------
- -------------------------------------------------------------------------------------------------------
If you annuitize at the end
of the applicable time period
--------------------------------------------------------
Portfolio Name 1 year 3 years 5 years 10 years
- -------------------------------------------------------------------------------------------------------
EQ ADVISORS TRUST:
- -------------------------------------------------------------------------------------------------------
EQ/MFS Investors Trust $ 799.67 $ 1,727.90 $ 2,696.40 $ 5,308.87
EQ/Money Market $ 766.07 $ 1,629.51 $ 2,536.76 $ 5,014.47
EQ/Putnam Growth & Income Value $ 798.62 $ 1,724.84 $ 2,691.45 $ 5,299.82
EQ/Putnam Voyager $ 807.02 $ 1,749.34 $ 2,731.03 $ 5,371.94
EQ/Small Company Index $ 788.12 $ 1,694.16 $ 2,641.78 $ 5,208.80
EQ/Technology $ 829.07 $ 1,813.44 $ 2,834.26 $ 5,558.37
- -------------------------------------------------------------------------------------------------------
BARR ROSENBERG VARIABLE INSURANCE TRUST:
- -------------------------------------------------------------------------------------------------------
Laudus Rosenberg VIT Value Long/Short Equity $ 1,510.56 $ 3,668.36 $ 5,626.30 $ 9,772.13
- -------------------------------------------------------------------------------------------------------
THE UNIVERSAL INSTITUTIONAL FUNDS, INC.:
- -------------------------------------------------------------------------------------------------------
U.S. Real Estate -- Class II $ 852.16 $ 1,880.29 $ 2,941.38 $ 5,749.24
- -------------------------------------------------------------------------------------------------------
- -------------------------------------------------------------------------------------------------------
If you do not surrender your contract at the end
of the applicable time period
--------------------------------------------------------
Portfolio Name 1 year 3 years 5 years 10 years
- -------------------------------------------------------------------------------------------------------
EQ ADVISORS TRUST:
- -------------------------------------------------------------------------------------------------------
EQ/MFS Investors Trust $ 449.67 $ 1,377.90 $ 2,346.40 $ 4,958.87
EQ/Money Market $ 416.07 $ 1,279.51 $ 2,186.76 $ 4,664.47
EQ/Putnam Growth & Income Value $ 448.62 $ 1,374.84 $ 2,341.45 $ 4,949.82
EQ/Putnam Voyager $ 457.02 $ 1,399.34 $ 2,381.03 $ 5,021.94
EQ/Small Company Index $ 438.12 $ 1,344.16 $ 2,291.78 $ 4,858.80
EQ/Technology $ 479.07 $ 1,463.44 $ 2,484.26 $ 5,208.37
- -------------------------------------------------------------------------------------------------------
BARR ROSENBERG VARIABLE INSURANCE TRUST:
- -------------------------------------------------------------------------------------------------------
Laudus Rosenberg VIT Value Long/Short Equity $ 1,160.56 $ 3,318.36 $ 5,276.30 $ 9,422.13
- -------------------------------------------------------------------------------------------------------
THE UNIVERSAL INSTITUTIONAL FUNDS, INC.:
- -------------------------------------------------------------------------------------------------------
U.S. Real Estate -- Class II $ 502.16 $ 1,530.29 $ 2,591.38 $ 5,399.24
- -------------------------------------------------------------------------------------------------------
11
(5) TAX INFORMATION
REQUIRED MINIMUM DISTRIBUTIONS
Distributions must be made according to rules in the Code and Treasury
Regulations and the terms of the plan. Treasury Regulations on required minimum
distributions were proposed in 1987, revised in 2001 and finalized in 2002. The
2002 final Regulations generally apply beginning in January 2003. The 2002
final regulations include Temporary Regulations applicable to annuity contracts
used to fund plans. Certain provisions of the Temporary Regulations concerning
the actuarial value of additional contract benefits which could have increased
the amount required to be distributed from contracts have currently been
suspended. However, these or similar provisions may apply in future years.
Under transitional rules, the 1987 and 2001 proposed regulations may continue
to apply to annuity payments. Please consult your plan administrator and tax
advisor concerning applicability of these complex rules to your situation.
(6) UPDATED INFORMATION ON 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
$508.31 billion in assets as of December 31, 2003. 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.
Effective on or about September 7, 2004, we expect, subject to regulatory
approval, to change the name of "The Equitable Life Assurance Society of the
United States" to "AXA Equitable Life Insurance Company." When the name change
becomes effective, all references in any current prospectus, prospectus
supplement or statement of additional information to "The Equitable Life
Assurance Society of the United States" will become references to "AXA
Equitable Life Insurance Company." Accordingly, all references to "Equitable
Life" or "Equitable" will become references to "AXA Equitable."
(7) APPLICABLE ONLY TO CONTRACTS WITH THE GUARANTEED INTEREST OPTION
From time to time we may remove the restrictions regarding transferring amounts
out of the guaranteed interest option. 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, if any
dollar cost averaging transfer out of the guaranteed interest account causes a
violation of the 25% outbound restriction, that dollar cost averaging program
will be terminated for the current contract year. A new dollar cost averaging
program can be started in the next or subsequent contract years.
(8) DISRUPTIVE TRANSFER ACTIVITY
Frequent transfers, including market timing and other program trading
strategies, may be disruptive to the underlying portfolios in which the
variable investment options invest. Disruptive transfer activity may hurt the
long term performance of a portfolio by, for example, requiring it to maintain
larger amounts of cash or to liquidate portfolio holdings at a disadvantageous
time or price. We currently use the procedures described below to discourage
disruptive transfer activity in AXA Premier VIP Trust and EQ Advisors Trust.
You should understand, however, that these procedures are subject to the
following limitations: (1) they do not eliminate the possibility that
disruptive transfer activity, including market timing, will occur or that
portfolio performance will be affected by such activity; (2) the design of
these procedures involves inherently subjective judgments, which we and AXA
Premier VIP Trust and EQ Advisors Trust seek to make in a fair and reasonable
manner consistent with interests of all policy and contract owners. Certain
frequent transfer activities attempt to exploit inefficiencies in how portfolio
securities are valued. Please see the prospectuses for the underlying
portfolios for more information on how portfolio shares are priced.
If we determine that your transfer patterns are disruptive, 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. 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 reduce disruptive activity, we
monitor the frequency of transfers, including the size of transfers in relation
to portfolio assets, in each underlying portfolio. When a potentially
disruptive transfer into or out of a portfolio occurs on a day when the
portfolio's aggregate deposits or aggregate redemptions exceed our monitoring
threshold, we may take the actions described above to restrict availability of
12
voice, fax and automated transaction services. We currently apply such action
for the remaining life of each affected contract. We also currently provide a
letter to owners who have engaged in disruptive transfer activity of our
intention to restrict access to communication 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 potentially disruptive transfer
activity and our monitoring procedures and thresholds, as well as change our
procedures to restrict this activity.
Our ability to monitor potentially disruptive transfer activity is limited in
certain circumstances. Group annuity contracts may be owned by retirement plans
on whose behalf we provide transfer instructions on an omnibus (aggregate)
basis, which may mask the disruptive transfer activity of individual plan
participants, and/or interfere with our ability to restrict communication
services. Also, underlying portfolios that are not in AXA Premier VIP Trust or
EQ Advisors Trust may be available for investment through companies that may
have policies and procedures regarding disruptive transfer activity that are
different from ours. Please see the prospectuses for those underlying
portfolios for more information.
(9) SUBSEQUENT CONTRIBUTIONS
Any additional contributions you may make will generally be applied to your
contract on the business day Smith Barney receives the additional contribution
from you and transmits your order to us in accordance with our processing
procedures. We may reject your order and return your additional contribution or
credit your additional contribution to your contract at a later date if any of
the limitations described below apply.
We consider Smith Barney to be a "processing office" for the purpose of
receiving subsequent contributions as described above.
The procedures described above are not available for 1035 exchanges or other
replacement transactions; other types of transactions may also be excluded. You
must provide all information and documents we require with respect to your
additional contribution. The amount of the additional contribution you are
making must be permitted under your contract. Your contribution must be made in
accordance with all the other terms and conditions described in our prospectus.
After receiving your contribution, together with all required information and
documents, from you, Smith Barney must deliver them to us in accordance with
our processing arrangements with Smith Barney.
Smith Barney may establish a "closing time" for receipt of contribution
requests under the above arrangement that is earlier than the end of the
business day. Any such earlier closing time may be established without prior
notice to you. Also, while we are generally open on the same business days as
Smith Barney, a business day for the purposes of this supplement will be our
business day.
We or Smith Barney may change or discontinue these arrangements at any time
without prior notice. If you change Smith Barney as your broker-dealer of
record on your contract, the above procedures will no longer apply, although we
may have similar arrangements with your new broker-dealer.
You may always make subsequent contributions under your contract by any other
method described in the Accumulator(R) Series prospectus for your contract, as
supplemented from time to time. All contributions are subject to acceptance.
These arrangements may not be available in every state.
(10) CONDENSED FINANCIAL INFORMATION
The following table sets 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, 2003. The table shows unit values
based on the lowest and highest charges that would apply to any contract or
investment option to which this supplement relates, including the lowest and
highest charges that would apply to the underlying portfolios. Therefore, if
your contract has different charges or features than those assumed, your unit
values will be different than those shown. Please refer to the SAI for a
complete presentation of the unit values and units outstanding. The table also
shows the total number of units outstanding for all contracts to which this
supplement relates.
The unit values and number of units outstanding shown below are for contracts
offered under Separate Account 49 with the same daily asset charges of 0.95%.
13
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, 2003.
- ----------------------------------------------------------------------------------------------------------------------
For the years ending December 31,
---------------------------------------------------------
2003 2002 2001 2000 1999
- ----------------------------------------------------------------------------------------------------------------------
AXA Moderate Allocation
- ----------------------------------------------------------------------------------------------------------------------
Unit value $ 44.36 $ 37.59 $ 43.48 -- --
- ----------------------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) 3 -- -- -- --
- ----------------------------------------------------------------------------------------------------------------------
AXA Premier VIP Aggressive Equity
- ----------------------------------------------------------------------------------------------------------------------
Unit value $ 52.40 $ 38.47 $ 54.60 $ 73.67 $ 85.83
- ----------------------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) 1 1 1 1 --
- ----------------------------------------------------------------------------------------------------------------------
AXA Premier VIP Core Bond
- ----------------------------------------------------------------------------------------------------------------------
Unit value $ 11.01 $ 10.71 -- -- --
- ----------------------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) -- -- -- -- --
- ----------------------------------------------------------------------------------------------------------------------
AXA Premier VIP Health Care
- ----------------------------------------------------------------------------------------------------------------------
Unit value $ 10.06 $ 7.93 -- -- --
- ----------------------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) -- -- -- -- --
- ----------------------------------------------------------------------------------------------------------------------
AXA Premier VIP High Yield
- ----------------------------------------------------------------------------------------------------------------------
Unit value $ 29.44 $ 24.25 $ 25.23 $ 25.30 $ 28.03
- ----------------------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) 11 12 13 13 --
- ----------------------------------------------------------------------------------------------------------------------
AXA Premier VIP International Equity
- ----------------------------------------------------------------------------------------------------------------------
Unit value $ 10.43 $ 7.84 -- -- --
- ----------------------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) 3 -- -- -- --
- ----------------------------------------------------------------------------------------------------------------------
AXA Premier VIP Large Cap Core Equity
- ----------------------------------------------------------------------------------------------------------------------
Unit value $ 9.74 $ 7.67 -- -- --
- ----------------------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) 9 -- -- -- --
- ----------------------------------------------------------------------------------------------------------------------
AXA Premier VIP Large Cap Growth
- ----------------------------------------------------------------------------------------------------------------------
Unit value $ 8.82 $ 6.81 -- -- --
- ----------------------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) -- -- -- -- --
- ----------------------------------------------------------------------------------------------------------------------
AXA Premier VIP Large Cap Value
- ----------------------------------------------------------------------------------------------------------------------
Unit value $ 10.31 $ 7.94 -- -- --
- ----------------------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) 1 -- -- -- --
- ----------------------------------------------------------------------------------------------------------------------
AXA Premier VIP Small/Mid Cap Growth
- ----------------------------------------------------------------------------------------------------------------------
Unit value $ 8.65 $ 6.22 -- -- --
- ----------------------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) 3 -- -- -- --
- ----------------------------------------------------------------------------------------------------------------------
AXA Premier VIP Small/Mid Cap Value
- ----------------------------------------------------------------------------------------------------------------------
Unit value $ 10.30 $ 7.40 -- -- --
- ----------------------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) 5 -- -- -- --
- ----------------------------------------------------------------------------------------------------------------------
AXA Premier VIP Technology
- ----------------------------------------------------------------------------------------------------------------------
Unit value $ 8.88 $ 5.69 -- -- --
- ----------------------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) -- -- -- -- --
- ----------------------------------------------------------------------------------------------------------------------
EQ/Alliance Common Stock
- ----------------------------------------------------------------------------------------------------------------------
Unit value $236.45 $ 159.61 $ 241.72 $ 273.42 $ 321.89
- ----------------------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) 2 2 2 2 --
- ----------------------------------------------------------------------------------------------------------------------
EQ/Alliance Growth and Income
- ----------------------------------------------------------------------------------------------------------------------
Unit value $ 26.59 $ 20.58 -- -- --
- ----------------------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) 2 1 -- -- --
- ----------------------------------------------------------------------------------------------------------------------
EQ/Alliance Intermediate Government Securities
- ----------------------------------------------------------------------------------------------------------------------
Unit value $ 19.53 $ 19.30 -- -- --
- ----------------------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) 7 10 -- -- --
- ----------------------------------------------------------------------------------------------------------------------
EQ/Alliance International
- ----------------------------------------------------------------------------------------------------------------------
Unit value $ 11.81 $ 8.82 -- -- --
- ----------------------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) 8 -- -- -- --
- ----------------------------------------------------------------------------------------------------------------------
EQ/Alliance Premier Growth
- ----------------------------------------------------------------------------------------------------------------------
Unit value $ 5.99 $ 4.91 $ 7.20 $ 9.56 $ 11.82
- ----------------------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) 93 89 79 54 --
- ----------------------------------------------------------------------------------------------------------------------
14
- ----------------------------------------------------------------------------------------------------------------------
For the years ending December 31,
---------------------------------------------------------
2003 2002 2001 2000 1999
- ----------------------------------------------------------------------------------------------------------------------
EQ/Alliance Quality Bond
- ----------------------------------------------------------------------------------------------------------------------
Unit value $ 16.19 $ 15.78 -- -- --
- ----------------------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) 3 -- -- -- --
- ----------------------------------------------------------------------------------------------------------------------
EQ/Alliance Small Cap Growth
- ----------------------------------------------------------------------------------------------------------------------
Unit value $ 14.04 $ 10.05 $ 14.55 $ 16.93 $ 15.04
- ----------------------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) 30 32 32 24 --
- ----------------------------------------------------------------------------------------------------------------------
EQ/Bernstein Diversified Value
- ----------------------------------------------------------------------------------------------------------------------
Unit value $ 13.19 $ 10.35 $ 12.09 $ 11.84 $ 12.20
- ----------------------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) 38 38 34 11 --
- ----------------------------------------------------------------------------------------------------------------------
EQ/Calvert Socially Responsible
- ----------------------------------------------------------------------------------------------------------------------
Unit value $ 8.09 $ 6.38 $ 8.76 -- --
- ----------------------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) -- -- -- -- --
- ----------------------------------------------------------------------------------------------------------------------
EQ/Capital Guardian International
- ----------------------------------------------------------------------------------------------------------------------
Unit value $ 9.71 $ 7.40 $ 8.79 $ 11.22 $ 14.00
- ----------------------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) 39 35 34 28 --
- ----------------------------------------------------------------------------------------------------------------------
EQ/Capital Guardian Research
- ----------------------------------------------------------------------------------------------------------------------
Unit value $ 10.53 $ 8.08 $ 10.83 $ 11.16 $ 10.64
- ----------------------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) 66 69 26 18 --
- ----------------------------------------------------------------------------------------------------------------------
EQ/Capital Guardian U. S. Equity
- ----------------------------------------------------------------------------------------------------------------------
Unit value $ 10.48 $ 7.76 $ 10.26 $ 10.58 $ 10.31
- ----------------------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) 34 25 21 15 --
- ----------------------------------------------------------------------------------------------------------------------
EQ/Emerging Markets Equity
- ----------------------------------------------------------------------------------------------------------------------
Unit value $ 8.95 $ 5.80 $ 6.22 $ 6.62 $ 11.15
- ----------------------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) 12 12 9 8 --
- ----------------------------------------------------------------------------------------------------------------------
EQ/Equity 500 Index
- ----------------------------------------------------------------------------------------------------------------------
Unit value $ 24.53 $ 19.37 $ 25.20 $ 28.97 --
- ----------------------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) 10 10 11 6 --
- ----------------------------------------------------------------------------------------------------------------------
EQ/Evergreen Omega
- ----------------------------------------------------------------------------------------------------------------------
Unit value $ 8.05 $ 5.88 $ 7.81 $ 9.50 $ 10.87
- ----------------------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) -- -- -- -- --
- ----------------------------------------------------------------------------------------------------------------------
EQ/FI Mid Cap
- ----------------------------------------------------------------------------------------------------------------------
Unit value $ 9.86 $ 6.93 $ 8.59 $ 10.01 --
- ----------------------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) 34 29 19 3 --
- ----------------------------------------------------------------------------------------------------------------------
EQ/FI Small/Mid Cap Value
- ----------------------------------------------------------------------------------------------------------------------
Unit value $ 12.73 $ 9.64 $ 11.41 $ 11.08 --
- ----------------------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) 20 14 11 -- --
- ----------------------------------------------------------------------------------------------------------------------
EQ/J.P. Morgan Core Bond
- ----------------------------------------------------------------------------------------------------------------------
Unit value $ 13.81 $ 13.49 $ 12.43 $ 11.62 $ 10.53
- ----------------------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) 36 44 46 34 --
- ----------------------------------------------------------------------------------------------------------------------
EQ/Janus Large Cap Growth
- ----------------------------------------------------------------------------------------------------------------------
Unit value $ 5.52 $ 4.43 $ 6.41 $ 8.41 --
- ----------------------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) 28 22 24 10 --
- ----------------------------------------------------------------------------------------------------------------------
EQ/Lazard Small Cap Value
- ----------------------------------------------------------------------------------------------------------------------
Unit value $ 14.75 $ 10.84 $ 12.70 $ 10.89 $ 9.28
- ----------------------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) 17 18 15 9 --
- ----------------------------------------------------------------------------------------------------------------------
EQ/Marsico Focus
- ----------------------------------------------------------------------------------------------------------------------
Unit value $ 12.92 $ 9.95 $ 11.36 -- --
- ----------------------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) 3 2 1 -- --
- ----------------------------------------------------------------------------------------------------------------------
EQ/Mercury Basic Value Equity
- ----------------------------------------------------------------------------------------------------------------------
Unit value $ 18.80 $ 14.47 $ 17.53 $ 16.77 $ 15.14
- ----------------------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) 1 -- -- -- --
- ----------------------------------------------------------------------------------------------------------------------
15
- ----------------------------------------------------------------------------------------------------------------------
For the years ending December 31,
---------------------------------------------------------
2003 2002 2001 2000 1999
- ----------------------------------------------------------------------------------------------------------------------
EQ/Mercury International Value
- ----------------------------------------------------------------------------------------------------------------------
Unit value $ 14.46 $ 11.40 $ 13.81 $ 17.77 $ 20.45
- ----------------------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) 51 73 65 47 --
- ----------------------------------------------------------------------------------------------------------------------
EQ/MFS Emerging Growth Companies
- ----------------------------------------------------------------------------------------------------------------------
Unit value $ 12.20 $ 9.53 $ 14.64 $ 22.42 $ 27.88
- ----------------------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) 42 42 43 35 --
- ----------------------------------------------------------------------------------------------------------------------
EQ/MFS Investors Trust
- ----------------------------------------------------------------------------------------------------------------------
Unit value $ 8.34 $ 6.90 $ 8.82 $ 10.59 $ 10.77
- ----------------------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) 6 7 6 2 --
- ----------------------------------------------------------------------------------------------------------------------
EQ/Money Market
- ----------------------------------------------------------------------------------------------------------------------
Unit value $ 31.04 $ 31.16 $ 31.08 $ 30.29 $ 28.85
- ----------------------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) 2 6 13 8 11
- ----------------------------------------------------------------------------------------------------------------------
EQ/Putnam Growth & Income Value
- ----------------------------------------------------------------------------------------------------------------------
Unit value $ 12.40 $ 9.87 $ 12.31 $ 13.34 $ 12.61
- ----------------------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) 18 20 18 4 --
- ----------------------------------------------------------------------------------------------------------------------
EQ/Putnam Voyager
- ----------------------------------------------------------------------------------------------------------------------
Unit value $ 11.78 $ 9.59 $ 13.15 $ 17.57 $ 21.58
- ----------------------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) 5 14 15 15 --
- ----------------------------------------------------------------------------------------------------------------------
EQ/Small Company Index
- ----------------------------------------------------------------------------------------------------------------------
Unit value $ 12.67 $ 8.77 $ 11.19 $ 11.07 $ 11.57
- ----------------------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) 15 17 17 10 --
- ----------------------------------------------------------------------------------------------------------------------
EQ/Technology
- ----------------------------------------------------------------------------------------------------------------------
Unit value $ 4.14 $ 2.91 $ 4.96 $ 6.63 --
- ----------------------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) 55 63 50 33 --
- ----------------------------------------------------------------------------------------------------------------------
16
The unit values and number of units outstanding shown below are for contracts
offered under Separate Account 49 with the same daily asset charges of 1.90%.
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, 2003.
- ----------------------------------------------------------------------------
For the years ending
December 31,
------------------------------
2003 2002 2001
- ----------------------------------------------------------------------------
AXA Moderate Allocation
- ----------------------------------------------------------------------------
Unit value $ 37.31 $ 31.93 $ 37.29
- ----------------------------------------------------------------------------
Number of units outstanding (000's) 11 7 4
- ----------------------------------------------------------------------------
AXA Premier VIP Aggressive Equity
- ----------------------------------------------------------------------------
Unit value $ 44.08 $ 32.67 $ 46.83
- ----------------------------------------------------------------------------
Number of units outstanding (000's) -- -- --
- ----------------------------------------------------------------------------
AXA Premier VIP Core Bond
- ----------------------------------------------------------------------------
Unit value $ 10.80 $ 10.61 --
- ----------------------------------------------------------------------------
Number of units outstanding (000's) 18 13 --
- ----------------------------------------------------------------------------
AXA Premier VIP Health Care
- ----------------------------------------------------------------------------
Unit value $ 9.87 $ 7.85 --
- ----------------------------------------------------------------------------
Number of units outstanding (000's) 3 3 --
- ----------------------------------------------------------------------------
AXA Premier VIP High Yield
- ----------------------------------------------------------------------------
Unit value $ 24.99 $ 20.79 $ 21.83
- ----------------------------------------------------------------------------
Number of units outstanding (000's) 11 7 --
- ----------------------------------------------------------------------------
AXA Premier VIP International Equity
- ----------------------------------------------------------------------------
Unit value $ 10.23 $ 7.76 --
- ----------------------------------------------------------------------------
Number of units outstanding (000's) 6 7 --
- ----------------------------------------------------------------------------
AXA Premier VIP Large Cap Core Equity
- ----------------------------------------------------------------------------
Unit value $ 9.55 $ 7.60 --
- ----------------------------------------------------------------------------
Number of units outstanding (000's) 15 17 --
- ----------------------------------------------------------------------------
AXA Premier VIP Large Cap Growth
- ----------------------------------------------------------------------------
Unit value $ 8.65 $ 6.75 --
- ----------------------------------------------------------------------------
Number of units outstanding (000's) 36 39 --
- ----------------------------------------------------------------------------
AXA Premier VIP Large Cap Value
- ----------------------------------------------------------------------------
Unit value $ 10.11 $ 7.86 --
- ----------------------------------------------------------------------------
Number of units outstanding (000's) 28 30 --
- ----------------------------------------------------------------------------
AXA Premier VIP Small/Mid Cap Growth
- ----------------------------------------------------------------------------
Unit value $ 8.48 $ 6.16 --
- ----------------------------------------------------------------------------
Number of units outstanding (000's) 30 34 --
- ----------------------------------------------------------------------------
AXA Premier VIP Small/Mid Cap Value
- ----------------------------------------------------------------------------
Unit value $ 10.11 $ 7.33 --
- ----------------------------------------------------------------------------
Number of units outstanding (000's) 23 25 --
- ----------------------------------------------------------------------------
AXA Premier VIP Technology
- ----------------------------------------------------------------------------
Unit value $ 8.71 $ 5.63 --
- ----------------------------------------------------------------------------
Number of units outstanding (000's) 4 4 --
- ----------------------------------------------------------------------------
EQ/Alliance Common Stock
- ----------------------------------------------------------------------------
Unit value $180.69 $ 123.15 $ 188.32
- ----------------------------------------------------------------------------
Number of units outstanding (000's) 3 3 1
- ----------------------------------------------------------------------------
EQ/Alliance Growth and Income
- ----------------------------------------------------------------------------
Unit value $ 24.09 $ 18.83 --
- ----------------------------------------------------------------------------
Number of units outstanding (000's) 11 10 --
- ----------------------------------------------------------------------------
EQ/Alliance Intermediate Government
Securities
- ----------------------------------------------------------------------------
Unit value $ 17.27 $ 17.23 --
- ----------------------------------------------------------------------------
Number of units outstanding (000's) 3 2 --
- ----------------------------------------------------------------------------
17
- ----------------------------------------------------------------------------
For the years ending
December 31,
------------------------------
2003 2002 2001
- ----------------------------------------------------------------------------
EQ/Alliance International
- ----------------------------------------------------------------------------
Unit value $ 10.86 $ 8.19 --
- ----------------------------------------------------------------------------
Number of units outstanding (000's) 14 -- --
- ----------------------------------------------------------------------------
EQ/Alliance Premier Growth
- ----------------------------------------------------------------------------
Unit value $ 5.73 $ 4.74 $ 7.02
- ----------------------------------------------------------------------------
Number of units outstanding (000's) 111 108 27
- ----------------------------------------------------------------------------
EQ/Alliance Quality Bond
- ----------------------------------------------------------------------------
Unit value $ 14.67 $ 14.44 --
- ----------------------------------------------------------------------------
Number of units outstanding (000's) 25 28 --
- ----------------------------------------------------------------------------
EQ/Alliance Small Cap Growth
- ----------------------------------------------------------------------------
Unit value $ 13.61 $ 9.52 $ 13.91
- ----------------------------------------------------------------------------
Number of units outstanding (000's) 25 31 7
- ----------------------------------------------------------------------------
EQ/Bernstein Diversified Value
- ----------------------------------------------------------------------------
Unit value $ 12.45 $ 9.86 $ 11.64
- ----------------------------------------------------------------------------
Number of units outstanding (000's) 66 66 16
- ----------------------------------------------------------------------------
EQ/Calvert Socially Responsible
- ----------------------------------------------------------------------------
Unit value $ 7.75 $ 6.18 $ 8.56
- ----------------------------------------------------------------------------
Number of units outstanding (000's) -- -- --
- ----------------------------------------------------------------------------
EQ/Capital Guardian International
- ----------------------------------------------------------------------------
Unit value $ 9.29 $ 7.14 $ 8.57
- ----------------------------------------------------------------------------
Number of units outstanding (000's) 36 48 41
- ----------------------------------------------------------------------------
EQ/Capital Guardian Research
- ----------------------------------------------------------------------------
Unit value $ 10.07 $ 7.80 $ 10.56
- ----------------------------------------------------------------------------
Number of units outstanding (000's) 35 37 13
- ----------------------------------------------------------------------------
EQ/Capital Guardian U. S. Equity
- ----------------------------------------------------------------------------
Unit value $ 10.02 $ 7.49 $ 10.00
- ----------------------------------------------------------------------------
Number of units outstanding (000's) 38 40 21
- ----------------------------------------------------------------------------
EQ/Emerging Markets Equity
- ----------------------------------------------------------------------------
Unit value $ 8.42 $ 5.50 $ 5.96
- ----------------------------------------------------------------------------
Number of units outstanding (000's) -- -- --
- ----------------------------------------------------------------------------
EQ/Equity 500 Index
- ----------------------------------------------------------------------------
Unit value $ 22.31 $ 17.79 $ 23.37
- ----------------------------------------------------------------------------
Number of units outstanding (000's) 28 29 11
- ----------------------------------------------------------------------------
EQ/Evergreen Omega
- ----------------------------------------------------------------------------
Unit value $ 7.67 $ 5.66 $ 7.59
- ----------------------------------------------------------------------------
Number of units outstanding (000's) 7 4 --
- ----------------------------------------------------------------------------
EQ/FI Mid Cap
- ----------------------------------------------------------------------------
Unit value $ 9.55 $ 6.78 $ 8.48
- ----------------------------------------------------------------------------
Number of units outstanding (000's) 22 25 5
- ----------------------------------------------------------------------------
EQ/FI Small/Mid Cap Value
- ----------------------------------------------------------------------------
Unit value $ 11.94 $ 9.13 $ 10.91
- ----------------------------------------------------------------------------
Number of units outstanding (000's) 39 40 14
- ----------------------------------------------------------------------------
EQ/J.P. Morgan Core Bond
- ----------------------------------------------------------------------------
Unit value $ 13.04 $ 12.85 $ 11.96
- ----------------------------------------------------------------------------
Number of units outstanding (000's) 60 73 31
- ----------------------------------------------------------------------------
EQ/Janus Large Cap Growth
- ----------------------------------------------------------------------------
Unit value $ 5.34 $ 4.33 $ 6.33
- ----------------------------------------------------------------------------
Number of units outstanding (000's) 38 47 6
- ----------------------------------------------------------------------------
EQ/Lazard Small Cap Value
- ----------------------------------------------------------------------------
Unit value $ 13.92 $ 10.33 $ 12.22
- ----------------------------------------------------------------------------
Number of units outstanding (000's) 44 43 14
- ----------------------------------------------------------------------------
18
- ----------------------------------------------------------------------------
For the years ending
December 31,
------------------------------
2003 2002 2001
- ----------------------------------------------------------------------------
EQ/Marsico Focus
- ----------------------------------------------------------------------------
Unit value $ 12.63 $ 9.82 $ 11.32
- ----------------------------------------------------------------------------
Number of units outstanding (000's) 14 3 2
- ----------------------------------------------------------------------------
EQ/Mercury Basic Value Equity
- ----------------------------------------------------------------------------
Unit value $ 17.63 $ 13.70 $ 16.76
- ----------------------------------------------------------------------------
Number of units outstanding (000's) 39 34 9
- ----------------------------------------------------------------------------
EQ/Mercury International Value
- ----------------------------------------------------------------------------
Unit value $ 13.56 $ 10.80 $ 13.20
- ----------------------------------------------------------------------------
Number of units outstanding (000's) 21 15 18
- ----------------------------------------------------------------------------
EQ/MFS Emerging Growth Companies
- ----------------------------------------------------------------------------
Unit value $ 11.44 $ 9.02 $ 14.00
- ----------------------------------------------------------------------------
Number of units outstanding (000's) 3 2 1
- ----------------------------------------------------------------------------
EQ/MFS Investors Trust
- ----------------------------------------------------------------------------
Unit value $ 7.94 $ 6.64 $ 8.56
- ----------------------------------------------------------------------------
Number of units outstanding (000's) 12 15 6
- ----------------------------------------------------------------------------
EQ/Money Market
- ----------------------------------------------------------------------------
Unit value $ 25.00 $ 25.34 $ 25.51
- ----------------------------------------------------------------------------
Number of units outstanding (000's) 21 115 217
- ----------------------------------------------------------------------------
EQ/Putnam Growth & Income Value
- ----------------------------------------------------------------------------
Unit value $ 11.62 $ 9.34 $ 11.77
- ----------------------------------------------------------------------------
Number of units outstanding (000's) 25 29 19
- ----------------------------------------------------------------------------
EQ/Putnam Voyager
- ----------------------------------------------------------------------------
Unit value $ 11.05 $ 9.08 $ 12.57
- ----------------------------------------------------------------------------
Number of units outstanding (000's) 3 8 4
- ----------------------------------------------------------------------------
EQ/Small Company Index
- ----------------------------------------------------------------------------
Unit value $ 11.95 $ 8.35 $ 10.77
- ----------------------------------------------------------------------------
Number of units outstanding (000's) 13 14 1
- ----------------------------------------------------------------------------
EQ/Technology
- ----------------------------------------------------------------------------
Unit value $ 3.99 $ 2.84 $ 4.88
- ----------------------------------------------------------------------------
Number of units outstanding (000's) 15 14 5
- ----------------------------------------------------------------------------
19
Appendix
- --------------------------------------------------------------------------------
Dates of previous Prospectuses and Supplements
- ------------------------------------------------------------------------------------------------------------------------------------
Product Distributor
--------------------------------------------------------------------------------
AXA Distributors
--------------------------------------------------------------------------------
Product Name Prospectus and SAI Dates Supplement Dates
- ------------------------------------------------------------------------------------------------------------------------------------
Income ManagerAccumulator(R) 4/7/95; 7/1/95; 9/28/95
Income Manager(R)Rollover IRA 11/1/95;
10/16/96 2/10/97
5/1/97 5/1/97
8/1/97
12/31/97 12/31/97; 5/1/98;1/4/99; 5/1/99; 5/1/00;
9/1/00;2/9/01; 9/1/01; 1/14/02; 2/22/02;
7/15/02; 8/20/02; 1/6/03; 2/20/03; 5/15/03;
8/15/03; 11/24/03; 2/1/04
- ------------------------------------------------------------------------------------------------------------------------------------
Equitable Accumulator(R)(IRA, NQ and QP) 10/1/97(2)
Equitable Accumulator(R)Select(SM) (IRA, NQ, QP) 12/31/97(2)
5/1/98 5/1/98; 6/18/98; 11/30/98;5/1/99; 5/1/00;
9/1/00; 2/9/01; 9/1/01; 1/14/02; 2/22/02;
7/15/02; 8/20/02; 1/6/03; 2/20/03; 5/15/03;
8/15/03; 11/24/03; 2/1/04
- ------------------------------------------------------------------------------------------------------------------------------------
Equitable Accumulator(R) Select(SM) 5/1/99
Equitable Accumulator(R) 10/18/99 3/20/00; 5/1/00; 9/1/00;
Equitable Accumulator Select (2002 Series) 10/13/00; 2/9/01; 9/1/01;
Equitable Accumulator (2002 Series) 1/14/02; 2/22/02; 7/15/02;
8/20/02; 1/6/03; 2/20/03;
5/15/03; 8/15/03; 11/24/03; 2/1/04
--------------------------------------------------------------------------------
5/1/00 3/20/00; 9/1/00; 9/6/00; 10/13/00; 2/9/01;
9/1/01; 1/14/02; 2/22/02; 7/15/02; 8/20/02;
1/6/03; 2/20/03; 5/15/03; 8/15/03; 11/24/03;
2/1/04
--------------------------------------------------------------------------------
5/1/01 5/1/01(1); 7/30/01(5);9/1/01; 10/1/01(6);
12/14/01; 1/14/02; 2/22/02; 7/15/02;
8/20/02; 1/6/03; 2/20/03; 5/15/03; 8/15/03;
11/24/03; 2/1/04
--------------------------------------------------------------------------------
N/A N/A
--------------------------------------------------------------------------------
4/1/02(4) 4/3/02; 5/20/02(7); 6/7/02(2); 7/15/02; 8/5/02(5);
8/20/02; 11/11/02; 12/6/02; 12/09/02;
1/6/03; 2/4/03; 2/20/03;5/15/03; 8/8/03(8);
8/15/03; 11/24/03; 2/1/04; 2/10/04
--------------------------------------------------------------------------------
5/1/02(3) 5/1/02(1); 7/15/02; 8/20/02; 1/6/03; 2/20/03;
5/15/03; 8/15/03; 11/24/03; 2/1/04
--------------------------------------------------------------------------------
5/1/02(4) 5/20/02(7); 6/7/02(2); 7/15/02;
8/5/02(5); 8/20/02; 11/11/02; 12/06/02;
12/09/02; 1/6/03; 2/4/03; 2/20/03; 5/15/03;
8/8/03(8); 8/15/03; 11/24/03; 2/1/04; 2/10/04
--------------------------------------------------------------------------------
5/1/03(4) 5/15/03; 8/8/03(8); 8/15/03; 11/24/03; 2/1/04;
2/10/04
- ------------------------------------------------------------------------------------------------------------------------------------
Accumulator(R) 9/15/03 9/15/03(9); 11/24/03; 12/5/03; 1/23/04;
(2004 Series) 2/2/04; 2/10/04(7); 2/23/04(7)
- ------------------------------------------------------------------------------------------------------------------------------------
1 Appendix
- ------------------------------------------------------------------------------------------------------------------------------------
Product Distributor
--------------------------------------------------------------------------------
AXA Distributors
--------------------------------------------------------------------------------
Product Name Prospectus and SAI Dates Supplement Dates
- ------------------------------------------------------------------------------------------------------------------------------------
Accumulator(R) Select (2004 Series) 9/15/03 9/15/03(9); 11/24/03; 12/5/03; 2/10/04;
2/23/04(7)
- ------------------------------------------------------------------------------------------------------------------------------------
Equitable Accumulator(R) Plus(SM) 8/2/99(3)
Equitable Accumulator Plus (2002 Series) 10/18/99(3)
5/1/00(3) 9/1/00; 9/6/00; 10/13/00;2/9/01; 3/19/01;
7/30/01;9/1/01; 1/14/02; 2/22/02; 7/15/02;
8/20/02; 1/6/03; 2/20/03; 5/15/03; 8/15/03;
11/24/03; 2/1/04
--------------------------------------------------------------------------------
5/1/01(3) 5/1/01; 7/30/01(5); 9/1/01; 12/14/01; 1/14/02;
2/22/02; 7/15/02; 8/20/02; 1/6/03; 2/20/03;
5/15/03; 8/15/03; 11/24/03; 2/1/04
--------------------------------------------------------------------------------
4/1/02(4) 4/3/02; 7/15/02; 8/5/02(5); 8/20/02; 11/11/02;
12/6/02; 12/9/02; 1/6/03; 2/4/03; 2/20/03;
5/15/03; 8/15/03; 11/24/03; 2/1/04; 2/10/
--------------------------------------------------------------------------------
5/1/02(3) 7/15/02; 8/20/02; 1/6/03; 2/20/03; 5/15/03;
8/15/03; 11/24/03; 2/1/04; 2/10/04
--------------------------------------------------------------------------------
5/1/02(4) 7/15/02; 8/5/02(5); 8/20/02; 11/11/02;
12/6/02; 12/9/02; 1/6/03; 2/4/03; 2/20/03;
5/15/03; 8/15/03; 11/24/03; 2/1/04; 2/10/04
--------------------------------------------------------------------------------
5/1/03(4) 5/15/03; 6/20/03; 8/15/03; 11/24/03; 2/1/04;
2/10/04
- ------------------------------------------------------------------------------------------------------------------------------------
Accumulator(R) Plus (2004 Series) 9/15/03 9/15/03; 11/24/03; 12/5/03; 1/23/04; 2/2/04;
2/10/04; 2/23/04(7);
- ------------------------------------------------------------------------------------------------------------------------------------
Equitable Accumulator(R) Select(SM) II 10/1/01 10/1/01(6); 12/14/01; 1/14/02; 2/22/02;
7/15/02; 8/20/02; 1/6/03; 2/20/03; 5/15/03;
8/15/03; 11/24/03; 2/1/04
- ------------------------------------------------------------------------------------------------------------------------------------
Equitable Accumulator(R) Elite(SM) II 10/1/01 10/1/01(7); 12/14/01; 1/14/02; 2/22/02;
7/15/02; 8/20/02; 1/6/03; 2/20/03; 5/15/03;
8/15/03; 11/24/03; 2/1/04
- ------------------------------------------------------------------------------------------------------------------------------------
Equitable Accumulator(R) Elite(SM) 8/13/01(3) 9/1/01; 10/1/01(7); 12/14/01;1/14/02; 2/22/02;
Equitable Accumulator Elite (2002 Series) 7/15/02; 8/20/02; 11/11/02; 1/6/03; 2/20/03;
5/15/03; 8/15/03; 11/24/03; 2/1/04
--------------------------------------------------------------------------------
4/1/02(4) 4/3/02(5); 5/20/02(7); 7/15/02; 8/5/02(5);
8/20/02; 11/11/02; 12/6/02; 12/9/02; 1/6/03;
2/4/03; 2/20/03; 5/15/03; 8/15/03; 11/24/03;
2/1/04; 2/10/04
--------------------------------------------------------------------------------
5/1/02(3) 7/15/02; 8/20/02; 1/6/03; 2/20/03; 5/15/03;
8/15/03; 11/24/03; 2/1/04
--------------------------------------------------------------------------------
5/1/02(4) 5/20/02(7); 7/15/02; 8/5/02(5); 8/20/02;
11/11/02; 12/6/02; 12/9/02; 1/6/03; 2/4/03;
2/20/03; 5/15/03; 8/15/03; 11/24/03; 2/1/04;
2/10/04
--------------------------------------------------------------------------------
5/1/03(4) 5/15/03; 6/20/03; 8/15/03; 11/24/03; 2/1/04;
2/10/04
- ------------------------------------------------------------------------------------------------------------------------------------
Accumulator(R) Elite (2004 Series) 9/15/03 9/15/0310); 11/24/03; 12/5/03; 1/23/04;
2/2/04; 2/10/04; 2/23/04(7)
- ------------------------------------------------------------------------------------------------------------------------------------
Appendix 2
- ------------------------------------------------------------------------------------------------------------------------------------
Product Distributor
--------------------------------------------------------------------------------
AXA Distributors
--------------------------------------------------------------------------------
Product Name Prospectus and SAI Dates Supplement Dates
- ------------------------------------------------------------------------------------------------------------------------------------
Equitable Accumulator(R)Express(SM) 9/2/99
10/18/99
5/1/00 9/1/00; 9/6/00; 2/9/01; 7/30/01(5); 9/1/01;
12/14/01;1/14/02; 2/22/02; 7/15/02; 8/20/02;
1/6/03; 5/15/03;8/15/03; 11/24/03; 2/1/04
--------------------------------------------------------------------------------
5/1/01 7/30/01(5); 9/1/01; 1/14/02; 2/22/02; 7/15/02;
8/20/02;1/6/03; 5/15/03; 8/15/03;11/24/03;
2/1/04
--------------------------------------------------------------------------------
5/1/03 5/15/03; 8/15/03; 11/24/03; 12/23/03;
2/1/04; 2/10/04
- ------------------------------------------------------------------------------------------------------------------------------------
(1) applies to Accumulator(R) contracts issued in Oregon only.
(2) applies to Accumulator(R) Select(SM) only.
(3) applies to non-2002 Series only.
(4) applies to 2002 Series only.
(5) applies to contracts issued in Washington only.
(6) applies to Accumulator(R) Select(SM) and Select II(SM) contracts issued in
New York only.
(7) applies to contracts issued in New York only.
(8) applies to Accumulator(R) only.
(9) There are two supplements dated 9/15/03 for Accumulator(R) and
Accumulator(R) Select(SM).
(10) There are three supplements dated 9/15/03 for Accumulator(R) Elite(SM).
3 Appendix
Statement of additional information
- --------------------------------------------------------------------------------
TABLE OF CONTENTS
Page
Unit Values 2
Equitable Life's Pending Name Change 2
Custodian and Independent Auditors 2
Distribution of the Contracts 2
Financial Statements 2
How to obtain an Equitable Accumulator(R) Statement of Additional Information
Send this request form to:
Equitable Accumulator(R)
P.O. Box 1547
Secaucus, NJ 07096-1547
- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
Please send me a combined Equitable Accumulator(R) series SAI dated May 1, 2004
- --------------------------------------------------------------------------------
Name
- --------------------------------------------------------------------------------
Address
- --------------------------------------------------------------------------------
City State Zip
(SAI 4ACS(5/03))
Equitable Accumulator(R) Select(SM)
A combination variable and fixed deferred annuity contract
PROSPECTUS DATED MAY 1, 2004
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. You should read the prospectuses for each
Trust, which contain important information about the portfolios.
- --------------------------------------------------------------------------------
WHAT IS THE EQUITABLE ACCUMULATOR(R) Select(SM)?
Equitable Accumulator(R) Select(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 offers income
and death benefit protection. It also offers 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 fixed maturity options ("investment options").
There is no withdrawal charge under the contract. This contract is offered in
Oregon only.
- --------------------------------------------------------------------------------
Variable investment options
- --------------------------------------------------------------------------------
o AXA Aggressive Allocation(1) o EQ/Alliance Small Cap Growth
o AXA Conservative Allocation(1) o EQ/Bernstein Diversified Value
o AXA Conservative-Plus Allocation(1) o EQ/Calvert Socially Responsible
o AXA Moderate Allocation(1) o EQ/Capital Guardian International
o AXA Moderate-Plus Allocation(1) o EQ/Capital Guardian Research
o AXA Premier VIP Aggressive Equity o EQ/Capital Guardian U.S. Equity
o AXA Premier VIP Core Bond o EQ/Emerging Markets Equity
o AXA Premier VIP Health Care o EQ/Equity 500 Index
o AXA Premier VIP High Yield o EQ/Evergreen Omega
o AXA Premier VIP International Equity o EQ/FI Mid Cap
o AXA Premier VIP Large Cap Core o EQ/FI Small/Mid Cap Value
Equity o EQ/J.P. Morgan Core Bond
o AXA Premier VIP Large Cap Growth o EQ/Janus Large Cap Growth
o AXA Premier VIP Large Cap Value o EQ/Lazard Small Cap Value
o AXA Premier VIP Small/Mid Cap o EQ/Marsico Focus
Growth o EQ/Mercury Basic Value Equity
o AXA Premier VIP Small/Mid Cap Value o EQ/Mercury International Value
o AXA Premier VIP Technology o EQ/MFS Emerging Growth Companies
o EQ/Alliance Common Stock o EQ/MFS Investors Trust
o EQ/Alliance Growth and Income o EQ/Money Market
o EQ/Alliance Intermediate o EQ/Putnam Growth & Income Value
Government Securities o EQ/Putnam Voyager
o EQ/Alliance International o EQ/Small Company Index
o EQ/Alliance Premier Growth o EQ/Technology(2)
o EQ/Alliance Quality Bond
- --------------------------------------------------------------------------------
(1) The "AXA Allocation" portfolio.
(2) Subject to shareholder approval, on or about May 14, 2004, we anticipate
that the EQ/Technology investment option (the "replaced option"), which
invests in a corresponding portfolio of EQ Advisors Trust, will be merged
into the AXA Premier VIP Technology investment option (the "surviving
option"), which invests in a corresponding portfolio of AXA Premier VIP
Trust. At that time, we will move the assets in the replaced option into
the surviving option and all allocation elections to the replaced option
will be considered allocations to the surviving option.
You may allocate to any of the variable investment options. Each variable
investment option is a subaccount of Separate Account No. 45 and Separate
Account No. 49. 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 annuity that is an investment vehicle for a qualified defined
contribution plan ("QP").
o An individual retirement annuity ("IRA"), either traditional IRA ("Rollover
IRA") or Roth IRA ("Roth Conversion IRA").
o An Internal Revenue Code Section 403(b) Tax-Sheltered Annuity ("TSA") --
("Rollover TSA").
A contribution of at least $25,000 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, 2004, 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 1-800-789-7771. 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.
X00687
OREGON ONLY
Contents of this Prospectus
- --------------------------------------------------------------------------------
EQUITABLE ACCUMULATOR(R) Select(SM)
- --------------------------------------------------------------------------------
Index of key words and phrases 4
Who is Equitable Life? 5
How to reach us 6
Equitable Accumulator(R) Select(SM) at a glance -- key features 8
- --------------------------------------------------------------------------------
FEE TABLE 10
- --------------------------------------------------------------------------------
Example 13
Condensed financial information 16
- --------------------------------------------------------------------------------
1. CONTRACT FEATURES AND BENEFITS 17
- --------------------------------------------------------------------------------
How you can purchase and contribute to your contract 17
Owner and annuitant requirements 19
How you can make your contributions 19
What are your investment options under the contract? 19
Allocating your contributions 23
Your benefit base 24
Annuity purchase factors 25
Our baseBUILDER option 25
Guaranteed minimum death benefit 26
Your right to cancel within a certain number of days 27
- --------------------------------------------------------------------------------
2. DETERMINING YOUR CONTRACT'S VALUE 28
- --------------------------------------------------------------------------------
Your account value and cash value 28
Your contract's value in the variable investment options 28
Your contract's value in the fixed maturity options 28
Termination of your contract 28
- --------------------------------------------------------------------------------
3. TRANSFERRING YOUR MONEY AMONG
INVESTMENT OPTIONS 29
- --------------------------------------------------------------------------------
Transferring your account value 29
Disruptive transfer activity 29
Rebalancing your account value 29
- ----------------------
"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
- --------------------------------------------------------------------------------
4. ACCESSING YOUR MONEY 31
- --------------------------------------------------------------------------------
Withdrawing your account value 31
How withdrawals are taken from your account value 32
How withdrawals affect your guaranteed minimum
income benefit and guaranteed minimum death
benefit 32
Loans under Rollover TSA contracts 32
Surrendering your contract to receive its cash value 33
When to expect payments 33
Your annuity payout options 33
- --------------------------------------------------------------------------------
5. CHARGES AND EXPENSES 35
- --------------------------------------------------------------------------------
Charges that Equitable Life deducts 35
Charges that the Trusts deduct 36
Group or sponsored arrangements 36
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6. PAYMENT OF DEATH BENEFIT 37
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Your beneficiary and payment of benefit 37
How death benefit payment is made 37
Beneficiary continuation option 38
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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) 41
Special rules for contracts funding qualified plans 42
Tax-Sheltered Annuity contracts (TSAs) 42
Federal and state income tax withholding
and information reporting 43
Impact of taxes to Equitable Life 44
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8. MORE INFORMATION 45
- --------------------------------------------------------------------------------
About Separate Account No. 45 and Separate Account No. 49 45
About the Trusts 45
About our fixed maturity options 45
About the general account 46
About other methods of payment 46
Dates and prices at which contract events occur 47
About your voting rights 47
About legal proceedings 48
About our independent auditors 48
Financial statements 48
Transfers of ownership, collateral assignments, loans
and borrowing 48
Distribution of the contracts 48
- --------------------------------------------------------------------------------
9. INCORPORATION OF CERTAIN DOCUMENTS BY REFERENCE 50
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
APPENDICES
- --------------------------------------------------------------------------------
I -- Condensed financial information A-1
II -- Purchase considerations for QP contracts B-1
III -- Market value adjustment example C-1
IV -- Guaranteed minimum death benefit example D-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 in
Term Prospectus
12 month dollar cost averaging 24
account value 28
administrative charge 35
annual ratchet death benefit 26
annuitant 17
annuity maturity date 34
annuity payout options 33
annuity purchase factors 25
automatic investment program 47
baseBUILDER 25
baseBUILDER benefit charge 35
beneficiary 37
Beneficiary Continuation Option ("BCO") 38
benefit base 24
business day 47
cash value 28
charges for state premium and other applicable taxes 35
contract date 9
contract date anniversary 9
contract year 9
contributions 41
regular contributions 41
rollovers and direct transfers 41
conversion contributions 41
disruptive transfer activity 29
distribution charge 35
EQAccess 6
ERISA 32
fixed maturity options 23
free look 27
general account 46
General dollar cost averaging 24
guaranteed minimum death benefit 26
guaranteed minimum income benefit 25
IRA cover
IRS 39
investment options cover
lifetime required minimum distribution withdrawals 32
Page in
Term Prospectus
loan reserve account 33
loans under Rollover TSA contracts 32
lump sum withdrawals 31
market adjusted amount 23
market timing 29
market value adjustment 23
maturity dates 23
maturity value 23
Mortality and expense risks charge 35
NQ cover
participant 19
Principal assurance allocation 23
portfolio cover
processing office 6
Protection Plus 27
Protection Plus charge 35
QP cover
rate to maturity 23
Rebalancing 29
Rollover IRA cover
Rollover TSA cover
roll-up death benefit 26
Roth Conversion IRA cover
Roth IRA cover
SAI cover
SEC cover
self-directed allocation 23
Separate Account No. 45 and Separate Account 49 45
substantially equal withdrawals 31
Successor owner and annuitant 37
systematic withdrawals 31
TOPS 6
Trusts cover
TSA cover
traditional IRA 41
unit 28
variable investment options 19
wire transmittals and electronic applications 46
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 use different words, they have the same meaning in this Prospectus as in the
contract. Your financial professional can provide further explanation about
your contract or supplemental materials.
- --------------------------------------------------------------------------------------
Prospectus Contract or Supplemental Materials
- --------------------------------------------------------------------------------------
fixed maturity options Guarantee Periods (Guaranteed Fixed Interest Accounts
in supplemental materials)
variable investment options Investment Funds
account value Annuity Account Value
rate to maturity Guaranteed Rates
unit Accumulation Unit
baseBUILDER Guaranteed Minimum Income Benefit
- --------------------------------------------------------------------------------------
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 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
$508.31 billion in assets as of December 31, 2003. 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.
Effective on or about September 7, 2004, we expect, subject to regulatory
approval, to change the name of "The Equitable Life Assurance Society of the
United States" to "AXA Equitable Life Insurance Company." When the name change
becomes effective, all references in any current prospectus, prospectus
supplement or statement of additional information to "The Equitable Life
Assurance Society of the United States" will become references to "AXA
Equitable Life Insurance Company." Accordingly, all references to "Equitable
Life" or "Equitable" will become references to "AXA Equitable."
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 CONTRIBUTIONS SENT BY REGULAR MAIL
- --------------------------------------------------------------------------------
Equitable Accumulator(R) Select(SM)
P.O. Box 13014
Newark, NJ 07188-0014
- --------------------------------------------------------------------------------
FOR CONTRIBUTIONS SENT BY EXPRESS DELIVERY
- --------------------------------------------------------------------------------
Equitable Accumulator(R) Select(SM)
c/o Bank One, N.A.
300 Harmon Meadow Boulevard, 3rd Floor
Attn: Box 13014
Secaucus, NJ 07094
- --------------------------------------------------------------------------------
FOR ALL OTHER COMMUNICATIONS (E.G., REQUESTS FOR
TRANSFERS, WITHDRAWALS, OR REQUIRED NOTICES) SENT BY
REGULAR MAIL
- --------------------------------------------------------------------------------
Equitable Accumulator(R) Select(SM)
P.O. Box 1547
Secaucus, NJ 07096-1547
- --------------------------------------------------------------------------------
FOR ALL OTHER COMMUNICATIONS (E.G., REQUESTS FOR
TRANSFERS, WITHDRAWALS, OR REQUIRED NOTICES) SENT BY
EXPRESS DELIVERY
- --------------------------------------------------------------------------------
Equitable Accumulator(R) Select(SM)
200 Plaza Drive, 4th Floor
Secaucus, NJ 07094
- --------------------------------------------------------------------------------
REPORTS WE PROVIDE:
- --------------------------------------------------------------------------------
o written confirmation of financial transactions;
o statement of your contract values at the close of each calendar year and any
calendar quarter in which there was a financial transaction; and
o annual statement of your contract values as of the close of the contract year
including notification of eligibility to exercise the guaranteed minimum
income benefit, if applicable.
- --------------------------------------------------------------------------------
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 (not available through
EQAccess);
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 investment
options;
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 1-888-909-7770. If you are a client with AXA
Advisors you may use EQAccess by visiting our web site at
http://www.axaonline.com and clicking on EQAccess. All other clients may access
EQAccess by visiting our other web site at http://www.equitable.com. 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 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 (1-800-789-7771) to speak with one of our
customer service representatives. Our customer service representatives are
available on any business day from 8:30 a.m. until 5:30 p.m., Eastern time.
WE REQUIRE THAT THE FOLLOWING TYPES OF COMMUNICATIONS BE ON SPECIFIC FORMS WE
PROVIDE FOR THAT PURPOSE:
(1) authorization for telephone transfers by your financial professional
(available only for contracts distributed through AXA Distributors);
(2) conversion of a traditional IRA to a Roth Conversion IRA contract;
6 Who is Equitable Life?
(3) election of the automatic investment program;
(4) election of the rebalancing program;
(5) requests for loans under Rollover TSA contracts;
(6) spousal consent for loans under Rollover TSA contracts;
(7) requests for withdrawals or surrenders from Rollover TSA contracts;
(8) tax withholding elections;
(9) election of the beneficiary continuation option;
(10) IRA contribution recharacterizations;
(11) certain section 1035 exchanges;
(12) direct transfers; and
(13) exercise of the Guaranteed minimum income benefit.
WE ALSO HAVE SPECIFIC FORMS THAT WE RECOMMEND YOU USE FOR THE FOLLOWING TYPES
OF REQUESTS:
(1) address changes;
(2) beneficiary changes;
(3) transfers between investment options;
(4) contract surrender and withdrawal requests;
(5) death claims;
(6) general dollar cost averaging; and
(7) 12 month dollar cost averaging.
TO CANCEL OR CHANGE 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;
(4) 12 month dollar cost averaging;
(5) substantially equal withdrawals;
(6) systematic withdrawals; and
(7) 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
Equitable Accumulator(R) Select(SM) at a glance -- key features
- --------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
Professional investment Equitable Accumulator(R) Select(SM)'s variable investment options invest in different portfolios
management managed by professional investment advisers.
- ------------------------------------------------------------------------------------------------------------------------------------
Fixed maturity options o 10 fixed maturity options with maturities ranging from approximately 1 to 10 years (subject to
availability).
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. If you withdraw or transfer only a portion
of a fixed maturity amount, 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 also applies.
- ------------------------------------------------------------------------------------------------------------------------------------
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, compared 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 and in the SAI).
- ------------------------------------------------------------------------------------------------------------------------------------
baseBUILDER(R) protection baseBUILDER combines a guaranteed minimum income benefit with the guaranteed minimum death benefit
provided under the contract. The guaranteed minimum income benefit provides income protection for you
during the annuitant's life once the owner elects to annuitize the contract. The guaranteed minimum
death benefit provides a death benefit for the beneficiary should the annuitant die.
- ------------------------------------------------------------------------------------------------------------------------------------
Contribution amounts o Initial minimum: $25,000
o Additional minimum: $1,000 (NQ, QP and Rollover TSA contracts)
$100 monthly and $300 quarterly under our automatic investment program
(NQ contracts)
$50 IRA contracts
Maximum contribution limitations may apply. In general, contributions are limited to $1.5 million.
- ------------------------------------------------------------------------------------------------------------------------------------
Access to your money o Lump sum withdrawals
o Several withdrawal options on a periodic basis
o Loans under Rollover TSA contracts
o Contract surrender
You may incur income tax and a tax penalty.
- ------------------------------------------------------------------------------------------------------------------------------------
Payout options o Fixed annuity payout options
o Variable Immediate Annuity payout options
o Income Manager(R) payout options
- ------------------------------------------------------------------------------------------------------------------------------------
Additional features o Guaranteed minimum death benefit even if you do not elect baseBUILDER
o Dollar cost averaging
o Automatic investment program
o Account value rebalancing (quarterly, semiannually and annually)
o Free transfers
o Protection Plus, an optional death benefit available under certain contracts (subject to state
availability)
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8 Equitable Accumulator(R) Select(SM) at a glance -- key features
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Fees and charges o Daily charges on amounts invested in the variable investment options for mortality and expense
risks, administrative charges and distribution charges at a current annual rate of 1.60%.
o Annual 0.30% benefit base charge for the optional baseBUILDER benefit until you exercise your
guaranteed minimum income benefit, elect another annuity payout option or the contract date
anniversary after the annuitant reaches age 83, whichever occurs first. The benefit base is
described under "Your benefit base" in "Contract features and benefits" later in this Prospectus. If
you don't elect baseBUILDER, you still receive a guaranteed minimum death benefit under your
contract at no additional charge.
o Annual 0.20% Protection Plus charge for this optional death benefit.
o No sales charge deducted at the time you make contributions, no withdrawal charge and no annual
contract fee.
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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." For example, if your contract date
is May 1, your contract date anniversary is April 30.
--------------------------------------------------------------------------------------------------------
o We deduct a charge designed to approximate certain taxes that may be imposed on us, such as
premium taxes in your state. This 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 the Variable Immediate Annuity
payout options.
o Annual expenses of the Trust's portfolios are calculated as a percentage of the average daily net
assets invested in each portfolio. These expenses include management fees ranging from 0.10% to
1.20% annually, 12b-1 fees of 0.25% annually and other expenses.
- ------------------------------------------------------------------------------------------------------------------------------------
Annuitant issue ages NQ: 0-85
Rollover IRA, Roth Conversion IRA and Rollover TSA: 20-85
QP: 20-75
- ------------------------------------------------------------------------------------------------------------------------------------
The above is not a complete description of all material provisions of the
contract. In some cases, restrictions or exceptions apply. Also, all features
of the contract 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.
Other contracts
We offer a variety of fixed and variable annuity contracts. They may offer
features, including investment options, credits, fees and/or charges that are
different from those in the contracts 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.
Equitable Accumulator(R) Select(SM) at a glance -- key features 9
Fee table
- --------------------------------------------------------------------------------
The following tables describe the fees and expenses that you will pay when
buying and owning the contract. Each of the charges and expenses is more fully
described in "Charges and expenses" later in this Prospectus.
The first table describes fees and expenses that you will pay if you purchase a
Variable Immediate Annuity payout option. Charges designed to approximate
certain taxes that may be imposed on us, such as premium taxes in your state,
may also apply. Charges for certain features shown in the fee table are
mutually exclusive.
- ----------------------------------------------------------------------------------------------------
Charges we deduct from your account value at the time you request certain transactions
- ----------------------------------------------------------------------------------------------------
Charge if you elect a Variable Immediate Annuity payout option $350
- ----------------------------------------------------------------------------------------------------
The next table describes the fees and expenses that you will pay periodically
during the time that you own the contract, not including the underlying trust
portfolio fees and expenses.
- ----------------------------------------------------------------------------------------------------
Charges we deduct from your variable investment options expressed as an annual percentage of daily
net assets
- ----------------------------------------------------------------------------------------------------
Mortality and expense risks 1.10%
Administrative 0.25%
Distribution 0.25%
----
Total annual expenses 1.60%
- ----------------------------------------------------------------------------------------------------
Charges we deduct from your account value each year if you elect the optional benefit
- ----------------------------------------------------------------------------------------------------
baseBuilder benefit charge (calculated as a percentage of the applicable benefit base.
Deducted annually on each contract date anniversary for which the benefit is in effect.) 0.30%
- ----------------------------------------------------------------------------------------------------
Protection Plus benefit charge (calculated as a percentage of the account value. Deducted
annually on each contract date anniversary for which the benefit is in effect.) 0.20%
- ----------------------------------------------------------------------------------------------------
You also bear your proportionate share of all fees and expenses paid by a
"Portfolio" that corresponds to any variable investment option you are using.
This table shows the lowest and highest total operating expenses charged by any
of the Portfolios that you will pay periodically during the time that you own
the contract. These fees and expenses are reflected in the Portfolio's net
asset value each day. Therefore, they reduce the investment return of the
Portfolio and the related variable investment option. Actual fees and expenses
are likely to fluctuate from year to year. More detail concerning each
Portfolio's fees and expenses is contained in the Trust prospectus for the
Portfolio.
- ------------------------------------------------------------------------------------------------------
Portfolio operating expenses expressed as an annual percentage of daily net assets
- ------------------------------------------------------------------------------------------------------
Total Annual Portfolio Operating Expenses for 2003 (expenses that are deducted Lowest Highest
from Portfolio assets including management fees, 12b-1 fees, service fees, and/or ------ -------
other expenses)(1) 0.56% 10.23%
- ------------------------------------------------------------------------------------------------------
10 Fee table
This table shows the fees and expenses for 2003 as an annual percentage of each
Portfolio's daily average net assets.
- -----------------------------------------------------------------------------------------------------------------------------------
Total Fee Net Total
Annual Waivers Annual
Underlying Expenses and/or Expenses
Portfolio (Before Expense After
Management 12b-1 Other Fees and Expense Reimburse- Expense
Portfolio Name Fees(2) Fees(3) Expenses(4) Expenses(5) Limitation) ments(6) Limitations
- -----------------------------------------------------------------------------------------------------------------------------------
AXA PREMIER VIP TRUST:
- -----------------------------------------------------------------------------------------------------------------------------------
AXA Aggressive Allocation 0.10% 0.25% 5.91% 1.08% 7.34% (5.98)% 1.36%
AXA Conservative Allocation 0.10% 0.25% 9.04% 0.84% 10.23% (9.13)% 1.10%
AXA Conservative-Plus Allocation 0.10% 0.25% 4.13% 0.88% 5.36% (4.21)% 1.15%
AXA Moderate Allocation 0.10% 0.25% 0.39% 0.86% 1.60% (0.43)% 1.17%
AXA Moderate-Plus Allocation 0.10% 0.25% 1.77% 1.13% 3.25% (1.87)% 1.38%
AXA Premier VIP Aggressive Equity 0.62% 0.25% 0.15% -- 1.02% -- 1.02%
AXA Premier VIP Core Bond 0.60% 0.25% 0.26% -- 1.11% (0.16)% 0.95%
AXA Premier VIP Health Care 1.20% 0.25% 0.48% -- 1.93% (0.08)% 1.85%
AXA Premier VIP High Yield 0.59% 0.25% 0.16% -- 1.00% -- 1.00%
AXA Premier VIP International Equity 1.05% 0.25% 0.73% -- 2.03% (0.23)% 1.80%
AXA Premier VIP Large Cap Core Equity 0.90% 0.25% 0.52% -- 1.67% (0.32)% 1.35%
AXA Premier VIP Large Cap Growth 0.90% 0.25% 0.43% -- 1.58% (0.23)% 1.35%
AXA Premier VIP Large Cap Value 0.90% 0.25% 0.43% -- 1.58% (0.23)% 1.35%
AXA Premier VIP Small/Mid Cap Growth 1.10% 0.25% 0.35% -- 1.70% (0.10)% 1.60%
AXA Premier VIP Small/Mid Cap Value 1.10% 0.25% 0.31% -- 1.66% (0.06)% 1.60%
AXA Premier VIP Technology 1.20% 0.25% 0.83% -- 2.28% (0.43)% 1.85%
- -----------------------------------------------------------------------------------------------------------------------------------
EQ ADVISORS TRUST:
- -----------------------------------------------------------------------------------------------------------------------------------
EQ/Alliance Common Stock 0.48% 0.25% 0.06% -- 0.79% -- 0.79%
EQ/Alliance Growth and Income 0.57% 0.25% 0.06% -- 0.88% -- 0.88%
EQ/Alliance Intermediate Government Securities 0.49% 0.25% 0.08% -- 0.82% -- 0.82%
EQ/Alliance International 0.74% 0.25% 0.13% -- 1.12% (0.02)% 1.10%
EQ/Alliance Premier Growth 0.90% 0.25% 0.05% -- 1.20% (0.04)% 1.16%
EQ/Alliance Quality Bond 0.52% 0.25% 0.06% -- 0.83% -- 0.83%
EQ/Alliance Small Cap Growth 0.75% 0.25% 0.07% -- 1.07% -- 1.07%
EQ/Bernstein Diversified Value 0.64% 0.25% 0.06% -- 0.95% 0.00% 0.95%
EQ/Calvert Socially Responsible 0.65% 0.25% 0.55% -- 1.45% (0.40)% 1.05%
EQ/Capital Guardian International 0.85% 0.25% 0.21% -- 1.31% (0.11)% 1.20%
EQ/Capital Guardian Research 0.65% 0.25% 0.07% -- 0.97% (0.02)% 0.95%
EQ/Capital Guardian U.S. Equity 0.65% 0.25% 0.07% -- 0.97% (0.02)% 0.95%
EQ/Emerging Markets Equity 1.15% 0.25% 0.40% -- 1.80% 0.00% 1.80%
EQ/Equity 500 Index 0.25% 0.25% 0.06% -- 0.56% -- 0.56%
EQ/Evergreen Omega 0.65% 0.25% 0.25% -- 1.15% (0.20)% 0.95%
EQ/FI Mid Cap 0.70% 0.25% 0.08% -- 1.03% (0.03)% 1.00%
EQ/FI Small/Mid Cap Value 0.75% 0.25% 0.10% -- 1.10% 0.00% 1.10%
EQ/Janus Large Cap Growth 0.90% 0.25% 0.09% -- 1.24% (0.09)% 1.15%
EQ/J.P. Morgan Core Bond 0.44% 0.25% 0.08% -- 0.77% 0.00% 0.77%
EQ/Lazard Small Cap Value 0.75% 0.25% 0.10% -- 1.10% 0.00% 1.10%
EQ/Marsico Focus 0.90% 0.25% 0.07% -- 1.22% (0.07)% 1.15%
EQ/Mercury Basic Value Equity 0.60% 0.25% 0.07% -- 0.92% 0.00% 0.92%
EQ/Mercury International Value 0.85% 0.25% 0.16% -- 1.26% (0.01)% 1.25%
EQ/MFS Emerging Growth Companies 0.65% 0.25% 0.07% -- 0.97% -- 0.97%
EQ/MFS Investors Trust 0.60% 0.25% 0.11% -- 0.96% (0.01)% 0.95%
EQ/Money Market 0.33% 0.25% 0.06% -- 0.64% -- 0.64%
EQ/Putnam Growth & Income Value 0.60% 0.25% 0.10% -- 0.95% 0.00% 0.95%
EQ/Putnam Voyager 0.65% 0.25% 0.13% -- 1.03% (0.08)% 0.95%
EQ/Small Company Index 0.25% 0.25% 0.35% -- 0.85% 0.00% 0.85%
EQ/Technology 0.90% 0.25% 0.09% -- 1.24% (0.09)% 1.15%
- -----------------------------------------------------------------------------------------------------------------------------------
Notes:
(1) "Total Annual Portfolio Operating Expenses" are based, in part, on
estimated amounts for options added during the fiscal year 2003 and for the
underlying portfolios.
(2) The management fees for each Portfolio cannot be increased without a vote
of that Portfolio's shareholders. See footnote (6) for any expense
limitation agreement information.
(3) 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) Other expenses shown are those incurred in 2003. The amounts shown as
"Other Expenses" will fluctuate from year to year depending on actual
expenses. See footnote (6) for any expense limitation agreement
information.
Fee table 11
(5) The AXA Allocation variable investment options invest in corresponding
portfolios of the AXA Premier VIP Trust. Each AXA Allocation portfolio in
turn invests shares of other portfolio of the EQ Advisors Trust and AXA
Premier VIP Trust ("the underlying portfolios"). Amounts shown reflect each
AXA Allocation portfolio's pro rata share of the fees and expenses of the
various underlying portfolios in which it invests. The fees and expenses
have been estimated based on the respective weighted investment allocations
as of 12/31/03. A "--" indicates that the listed portfolio does not invest
in underlying portfolios, i.e., it is not an allocation portfolio.
(6) The amounts shown reflect any fee waivers and/or expense reimbursements
that applied to each Portfolio. A "-" indicates that there is no expense
limitation in effect. "0.00%" indicates that the expense limitation
arrangement did not result in a fee waiver or reimbursement. Equitable
Life, the investment manager of AXA Premier VIP Trust and EQ Advisors
Trust, has entered into Expense Limitation Agreements with respect to
certain Portfolios, which are effective through April 30, 2005. Under these
agreements Equitable Life has agreed to waive or limit its fees and assume
other expenses of certain Portfolios, if necessary, in an amount that
limits each affected Portfolio's total Annual Expenses (exclusive of
interest, taxes, brokerage commissions, capitalized expenditures and
extraordinary expenses) to not more than specified amounts. 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. See the Prospectus
for each applicable underlying Trust for more information about the
arrangements. In addition, a portion of the brokerage commissions of
certain portfolios of EQ Advisors Trust Portfolio and AXA Premier VIP Trust
Portfolio is used to reduce the applicable Portfolio's expenses. If the
above table reflected both the expense limitation arrangements plus the
portion of the brokerage commissions used to reduce portfolio expenses, the
net expenses would be as shown in the table below:
- ----------------------------------------------------
Portfolio Name
- ----------------------------------------------------
AXA Aggressive Allocation 0.95%
AXA Conservative Allocation 0.73%
AXA Conservative-Plus Allocation 0.78%
AXA Moderate Allocation 0.79%
AXA Moderate-Plus Allocation 0.99%
AXA Premier VIP Aggressive Equity 0.95%
AXA Premier VIP Health Care 1.84%
AXA Premier VIP International Equity 1.73%
AXA Premier VIP Large Cap Core Equity 1.32%
AXA Premier VIP Large Cap Growth 1.32%
AXA Premier VIP Large Cap Value 1.28%
AXA Premier VIP Small/Mid Cap Growth 1.46%
AXA Premier VIP Small/Mid Cap Value 1.52%
AXA Premier VIP Technology 1.70%
EQ/Alliance Common Stock 0.77%
EQ/Alliance Growth and Income 0.85%
EQ/Alliance Premier Growth 1.15%
EQ/Alliance Small Cap Growth 1.03%
EQ/Calvert Socially Responsible 1.00%
EQ/Capital Guardian International 1.18%
EQ/Capital Guardian Research 0.93%
EQ/Capital Guardian U.S. Equity 0.93%
EQ/Emerging Markets Equity 1.78%
EQ/Evergreen Omega 0.84%
EQ/FI Mid Cap 0.88%
EQ/FI Small/Mid Cap Value 1.04%
EQ/Lazard Small Cap Value 1.00%
EQ/Marsico Focus 1.10%
EQ/Mercury Basic Value Equity 0.91%
EQ/Mercury International Value 1.18%
EQ/MFS Emerging Growth Companies 0.96%
EQ/MFS Investors Trust 0.94%
EQ/Putnam Growth & Income Value 0.93%
EQ/Putnam Voyager 0.93%
EQ/Technology 1.01%
- ----------------------------------------------------
12 Fee table
EXAMPLE
This example is intended to help you compare the cost of investing in the
contract with the cost of investing in other variable annuity contracts. These
costs include contract owner transaction expenses, contract fees, separate
account annual expenses, and underlying trust fees and expenses (including the
underlying portfolio fees and expenses).
The example below shows the expenses that a hypothetical contract owner (who
has elected baseBUILDER and Protection Plus) would pay in the situations
illustrated. Since the Protection Plus feature only applies under certain
contracts, expenses would be lower for contracts that do not have Protection
Plus.
The fixed maturity options and the 12 month dollar cost averaging program are
not covered by the example. However, the charge for any optional benefits and
the charge if you elect a Variable Immediate Annuity payout option do apply to
amounts in the fixed maturity options and the 12 month dollar cost averaging
program. 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.
The example assumes that you invest $10,000 in the contract for the time
periods indicated. The example also assumes that your investment has a 5%
return each year. This example 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 example
is not an estimate or guarantee of future investment performance. Although your
actual costs may be higher or lower, based on these assumptions, your costs
would be:
Fee table 13
- ----------------------------------------------------------------------------------------------------------
If you surrender your contract at the end
of the applicable time period
---------------------------------------------------------
Portfolio Name 1 year 3 years 5 years 10 years
- ----------------------------------------------------------------------------------------------------------
AXA PREMIER VIP TRUST:
- ----------------------------------------------------------------------------------------------------------
AXA Aggressive Allocation $ 991.56 $ 2,839.94 $ 4,522.15 $ 8,095.47
AXA Conservative Allocation $ 1,294.58 $ 3,594.92 $ 5,557.59 $ 9,294.58
AXA Conservative-Plus Allocation $ 783.40 $ 2,291.50 $ 3,724.58 $ 7,003.09
AXA Moderate Allocation $ 388.88 $ 1,183.37 $ 2,000.68 $ 4,148.15
AXA Moderate-Plus Allocation $ 562.04 $ 1,680.98 $ 2,793.09 $ 5,543.78
AXA Premier VIP Aggressive Equity $ 327.60 $ 1,002.98 $ 1,706.17 $ 3,593.53
AXA Premier VIP Core Bond $ 337.05 $ 1,030.94 $ 1,752.08 $ 3,681.25
AXA Premier VIP Health Care $ 423.15 $ 1,283.25 $ 2,162.10 $ 4,443.89
AXA Premier VIP High Yield $ 325.50 $ 996.75 $ 1,695.95 $ 3,573.93
AXA Premier VIP International Equity $ 433.65 $ 1,313.72 $ 2,211.10 $ 4,532.52
AXA Premier VIP Large Cap Core Equity $ 395.85 $ 1,203.73 $ 2,033.68 $ 4,209.09
AXA Premier VIP Large Cap Growth $ 386.40 $ 1,176.10 $ 1,988.89 $ 4,126.31
AXA Premier VIP Large Cap Value $ 386.40 $ 1,176.10 $ 1,988.89 $ 4,126.31
AXA Premier VIP Small/Mid Cap Growth $ 399.00 $ 1,212.93 $ 2,048.57 $ 4,236.51
AXA Premier VIP Small/Mid Cap Value $ 394.80 $ 1,200.66 $ 2,028.71 $ 4,199.93
AXA Premier VIP Technology $ 459.90 $ 1,389.60 $ 2,332.67 $ 4,750.04
- ----------------------------------------------------------------------------------------------------------
EQ ADVISORS TRUST:
- ----------------------------------------------------------------------------------------------------------
EQ/Alliance Common Stock $ 303.45 $ 931.27 $ 1,588.05 $ 3,365.62
EQ/Alliance Growth and Income $ 312.90 $ 959.37 $ 1,634.41 $ 3,455.45
EQ/Alliance Intermediate Government Securities $ 306.60 $ 940.64 $ 1,603.52 $ 3,395.66
EQ/Alliance International $ 338.10 $ 1,034.04 $ 1,757.17 $ 3,690.95
EQ/Alliance Premier Growth $ 346.50 $ 1,058.85 $ 1,797.80 $ 3,768.16
EQ/Alliance Quality Bond $ 307.65 $ 943.76 $ 1,608.68 $ 3,405.65
EQ/Alliance Small Cap Growth $ 332.85 $ 1,018.52 $ 1,731.70 $ 3,642.37
EQ/Bernstein Diversified Value $ 320.25 $ 981.19 $ 1,670.35 $ 3,524.74
EQ/Calvert Socially Responsible $ 372.75 $ 1,136.10 $ 1,923.87 $ 4,005.38
EQ/Capital Guardian International $ 358.05 $ 1,092.89 $ 1,853.44 $ 3,873.29
EQ/Capital Guardian Research $ 322.35 $ 987.42 $ 1,680.59 $ 3,544.44
EQ/Capital Guardian U.S. Equity $ 322.35 $ 987.42 $ 1,680.59 $ 3,544.44
EQ/Emerging Markets Equity $ 409.50 $ 1,243.55 $ 2,098.07 $ 4,327.29
EQ/Equity 500 Index $ 279.30 $ 859.21 $ 1,468.74 $ 3,132.27
EQ/Evergreen Omega $ 341.25 $ 1,043.35 $ 1,772.42 $ 3,719.98
EQ/FI Mid Cap $ 328.65 $ 1,006.09 $ 1,711.28 $ 3,603.32
EQ/FI Small/Mid Cap Value $ 336.00 $ 1,027.83 $ 1,746.98 $ 3,671.55
EQ/J.P. Morgan Core Bond $ 301.35 $ 925.02 $ 1,577.72 $ 3,345.55
EQ/Janus Large Cap Growth $ 350.70 $ 1,071.24 $ 1,818.06 $ 3,806.53
EQ/Lazard Small Cap Value $ 336.00 $ 1,027.83 $ 1,746.98 $ 3,671.55
EQ/Marsico Focus $ 348.60 $ 1,065.04 $ 1,807.94 $ 3,787.37
EQ/Mercury Basic Value Equity $ 317.10 $ 971.84 $ 1,654.96 $ 3,495.10
EQ/Mercury International Value $ 352.80 $ 1,077.43 $ 1,828.18 $ 3,825.66
EQ/MFS Emerging Growth Companies $ 322.35 $ 987.42 $ 1,680.59 $ 3,544.44
EQ/MFS Investors Trust $ 321.30 $ 984.30 $ 1,675.47 $ 3,534.60
- ----------------------------------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------------------
If you annuitize at the end
of the applicable time period
---------------------------------------------------------
Portfolio Name 1 year 3 years 5 years 10 years
- ----------------------------------------------------------------------------------------------------------
AXA PREMIER VIP TRUST:
- ----------------------------------------------------------------------------------------------------------
AXA Aggressive Allocation $ 1,341.56 $ 3,189.94 $ 4,872.15 $ 8,445.47
AXA Conservative Allocation $ 1,644.58 $ 3,944.92 $ 5,907.59 $ 9,644.58
AXA Conservative-Plus Allocation $ 1,133.40 $ 2,641.50 $ 4,074.58 $ 7,353.09
AXA Moderate Allocation $ 738.88 $ 1,533.37 $ 2,350.68 $ 4,498.15
AXA Moderate-Plus Allocation $ 912.04 $ 2,030.98 $ 3,143.09 $ 5,893.78
AXA Premier VIP Aggressive Equity $ 677.60 $ 1,352.98 $ 2,056.17 $ 3,943.53
AXA Premier VIP Core Bond $ 687.05 $ 1,380.94 $ 2,102.08 $ 4,031.25
AXA Premier VIP Health Care $ 773.15 $ 1,633.25 $ 2,512.10 $ 4,793.89
AXA Premier VIP High Yield $ 675.50 $ 1,346.75 $ 2,045.95 $ 3,923.93
AXA Premier VIP International Equity $ 783.65 $ 1,663.72 $ 2,561.10 $ 4,882.52
AXA Premier VIP Large Cap Core Equity $ 745.85 $ 1,553.73 $ 2,383.68 $ 4,559.09
AXA Premier VIP Large Cap Growth $ 736.40 $ 1,526.10 $ 2,338.89 $ 4,476.31
AXA Premier VIP Large Cap Value $ 736.40 $ 1,526.10 $ 2,338.89 $ 4,476.31
AXA Premier VIP Small/Mid Cap Growth $ 749.00 $ 1,562.93 $ 2,398.57 $ 4,586.51
AXA Premier VIP Small/Mid Cap Value $ 744.80 $ 1,550.66 $ 2,378.71 $ 4,549.93
AXA Premier VIP Technology $ 809.90 $ 1,739.60 $ 2,682.67 $ 5,100.04
- ----------------------------------------------------------------------------------------------------------
EQ ADVISORS TRUST:
- ----------------------------------------------------------------------------------------------------------
EQ/Alliance Common Stock $ 653.45 $ 1,281.27 $ 1,938.05 $ 3,715.62
EQ/Alliance Growth and Income $ 662.90 $ 1,309.37 $ 1,984.41 $ 3,805.45
EQ/Alliance Intermediate Government Securities $ 656.60 $ 1,290.64 $ 1,953.52 $ 3,745.66
EQ/Alliance International $ 688.10 $ 1,384.04 $ 2,107.17 $ 4,040.95
EQ/Alliance Premier Growth $ 696.50 $ 1,408.85 $ 2,147.80 $ 4,118.16
EQ/Alliance Quality Bond $ 657.65 $ 1,293.76 $ 1,958.68 $ 3,755.65
EQ/Alliance Small Cap Growth $ 682.85 $ 1,368.52 $ 2,081.70 $ 3,992.37
EQ/Bernstein Diversified Value $ 670.25 $ 1,331.19 $ 2,020.35 $ 3,874.74
EQ/Calvert Socially Responsible $ 722.75 $ 1,486.10 $ 2,273.87 $ 4,355.38
EQ/Capital Guardian International $ 708.05 $ 1,442.89 $ 2,203.44 $ 4,223.29
EQ/Capital Guardian Research $ 672.35 $ 1,337.42 $ 2,030.59 $ 3,894.44
EQ/Capital Guardian U.S. Equity $ 672.35 $ 1,337.42 $ 2,030.59 $ 3,894.44
EQ/Emerging Markets Equity $ 759.50 $ 1,593.55 $ 2,448.07 $ 4,677.29
EQ/Equity 500 Index $ 629.30 $ 1,209.21 $ 1,818.74 $ 3,482.27
EQ/Evergreen Omega $ 691.25 $ 1,393.35 $ 2,122.42 $ 4,069.98
EQ/FI Mid Cap $ 678.65 $ 1,356.09 $ 2,061.28 $ 3,953.32
EQ/FI Small/Mid Cap Value $ 686.00 $ 1,377.83 $ 2,096.98 $ 4,021.55
EQ/J.P. Morgan Core Bond $ 651.35 $ 1,275.02 $ 1,927.72 $ 3,695.55
EQ/Janus Large Cap Growth $ 700.70 $ 1,421.24 $ 2,168.06 $ 4,156.53
EQ/Lazard Small Cap Value $ 686.00 $ 1,377.83 $ 2,096.98 $ 4,021.55
EQ/Marsico Focus $ 698.60 $ 1,415.04 $ 2,157.94 $ 4,137.37
EQ/Mercury Basic Value Equity $ 667.10 $ 1,321.84 $ 2,004.96 $ 3,845.10
EQ/Mercury International Value $ 702.80 $ 1,427.43 $ 2,178.18 $ 4,175.66
EQ/MFS Emerging Growth Companies $ 672.35 $ 1,337.42 $ 2,030.59 $ 3,894.44
EQ/MFS Investors Trust $ 671.30 $ 1,334.30 $ 2,025.47 $ 3,884.60
- ----------------------------------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------------------
If you do not surrender your contract at the
end of the applicable time period
---------------------------------------------------------
Portfolio Name 1 year 3 years 5 years 10 years
- ----------------------------------------------------------------------------------------------------------
AXA PREMIER VIP TRUST:
- ----------------------------------------------------------------------------------------------------------
AXA Aggressive Allocation $ 991.56 $ 2,839.94 $ 4,522.15 $ 8,095.47
AXA Conservative Allocation $ 1,294.58 $ 3,594.92 $ 5,557.59 $ 9,294.58
AXA Conservative-Plus Allocation $ 783.40 $ 2,291.50 $ 3,724.58 $ 7,003.09
AXA Moderate Allocation $ 388.88 $ 1,183.37 $ 2,000.68 $ 4,148.15
AXA Moderate-Plus Allocation $ 562.04 $ 1,680.98 $ 2,793.09 $ 5,543.78
AXA Premier VIP Aggressive Equity $ 327.60 $ 1,002.98 $ 1,706.17 $ 3,593.53
AXA Premier VIP Core Bond $ 337.05 $ 1,030.94 $ 1,752.08 $ 3,681.25
AXA Premier VIP Health Care $ 423.15 $ 1,283.25 $ 2,162.10 $ 4,443.89
AXA Premier VIP High Yield $ 325.50 $ 996.75 $ 1,695.95 $ 3,573.93
AXA Premier VIP International Equity $ 433.65 $ 1,313.72 $ 2,211.10 $ 4,532.52
AXA Premier VIP Large Cap Core Equity $ 395.85 $ 1,203.73 $ 2,033.68 $ 4,209.09
AXA Premier VIP Large Cap Growth $ 386.40 $ 1,176.10 $ 1,988.89 $ 4,126.31
AXA Premier VIP Large Cap Value $ 386.40 $ 1,176.10 $ 1,988.89 $ 4,126.31
AXA Premier VIP Small/Mid Cap Growth $ 399.00 $ 1,212.93 $ 2,048.57 $ 4,236.51
AXA Premier VIP Small/Mid Cap Value $ 394.80 $ 1,200.66 $ 2,028.71 $ 4,199.93
AXA Premier VIP Technology $ 459.90 $ 1,389.60 $ 2,332.67 $ 4,750.04
- ----------------------------------------------------------------------------------------------------------
EQ ADVISORS TRUST:
- ----------------------------------------------------------------------------------------------------------
EQ/Alliance Common Stock $ 303.45 $ 931.27 $ 1,588.05 $ 3,365.62
EQ/Alliance Growth and Income $ 312.90 $ 959.37 $ 1,634.41 $ 3,455.45
EQ/Alliance Intermediate Government Securities $ 306.60 $ 940.64 $ 1,603.52 $ 3,395.66
EQ/Alliance International $ 338.10 $ 1,034.04 $ 1,757.17 $ 3,690.95
EQ/Alliance Premier Growth $ 346.50 $ 1,058.85 $ 1,797.80 $ 3,768.16
EQ/Alliance Quality Bond $ 307.65 $ 943.76 $ 1,608.68 $ 3,405.65
EQ/Alliance Small Cap Growth $ 332.85 $ 1,018.52 $ 1,731.70 $ 3,642.37
EQ/Bernstein Diversified Value $ 320.25 $ 981.19 $ 1,670.35 $ 3,524.74
EQ/Calvert Socially Responsible $ 372.75 $ 1,136.10 $ 1,923.87 $ 4,005.38
EQ/Capital Guardian International $ 358.05 $ 1,092.89 $ 1,853.44 $ 3,873.29
EQ/Capital Guardian Research $ 322.35 $ 987.42 $ 1,680.59 $ 3,544.44
EQ/Capital Guardian U.S. Equity $ 322.35 $ 987.42 $ 1,680.59 $ 3,544.44
EQ/Emerging Markets Equity $ 409.50 $ 1,243.55 $ 2,098.07 $ 4,327.29
EQ/Equity 500 Index $ 279.30 $ 859.21 $ 1,468.74 $ 3,132.27
EQ/Evergreen Omega $ 341.25 $ 1,043.35 $ 1,772.42 $ 3,719.98
EQ/FI Mid Cap $ 328.65 $ 1,006.09 $ 1,711.28 $ 3,603.32
EQ/FI Small/Mid Cap Value $ 336.00 $ 1,027.83 $ 1,746.98 $ 3,671.55
EQ/J.P. Morgan Core Bond $ 301.35 $ 925.02 $ 1,577.72 $ 3,345.55
EQ/Janus Large Cap Growth $ 350.70 $ 1,071.24 $ 1,818.06 $ 3,806.53
EQ/Lazard Small Cap Value $ 336.00 $ 1,027.83 $ 1,746.98 $ 3,671.55
EQ/Marsico Focus $ 348.60 $ 1,065.04 $ 1,807.94 $ 3,787.37
EQ/Mercury Basic Value Equity $ 317.10 $ 971.84 $ 1,654.96 $ 3,495.10
EQ/Mercury International Value $ 352.80 $ 1,077.43 $ 1,828.18 $ 3,825.66
EQ/MFS Emerging Growth Companies $ 322.35 $ 987.42 $ 1,680.59 $ 3,544.44
EQ/MFS Investors Trust $ 321.30 $ 984.30 $ 1,675.47 $ 3,534.60
- ----------------------------------------------------------------------------------------------------------
14 Fee table
- ----------------------------------------------------------------------------------------------------------
If you surrender your contract at the end
of the applicable time period
---------------------------------------------------------
Portfolio Name 1 year 3 years 5 years 10 years
- ----------------------------------------------------------------------------------------------------------
EQ ADVISORS TRUST:
- ----------------------------------------------------------------------------------------------------------
EQ/Money Market $ 287.70 $ 884.31 $ 1,510.37 $ 3,214.06
EQ/Putnam Growth & Income Value $ 320.25 $ 981.19 $ 1,670.35 $ 3,524.74
EQ/Putnam Voyager $ 328.65 $ 1,006.09 $ 1,711.28 $ 3,603.32
EQ/Small Company Index $ 309.75 $ 950.01 $ 1,618.98 $ 3,425.60
EQ/Technology $ 350.70 $ 1,071.24 $ 1,818.06 $ 3,806.53
- ----------------------------------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------------------
If you annuitize at the end
of the applicable time period
---------------------------------------------------------
Portfolio Name 1 year 3 years 5 years 10 years
- ----------------------------------------------------------------------------------------------------------
EQ ADVISORS TRUST:
- ----------------------------------------------------------------------------------------------------------
EQ/Money Market $ 637.70 $ 1,234.31 $ 1,860.37 $ 3,564.06
EQ/Putnam Growth & Income Value $ 670.25 $ 1,331.19 $ 2,020.35 $ 3,874.74
EQ/Putnam Voyager $ 678.65 $ 1,356.09 $ 2,061.28 $ 3,953.32
EQ/Small Company Index $ 659.75 $ 1,300.01 $ 1,968.98 $ 3,775.60
EQ/Technology $ 700.70 $ 1,421.24 $ 2,168.06 $ 4,156.53
- ----------------------------------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------------------
If you do not surrender your contract at the
end of the applicable time period
---------------------------------------------------------
Portfolio Name 1 year 3 years 5 years 10 years
- ----------------------------------------------------------------------------------------------------------
EQ ADVISORS TRUST:
- ----------------------------------------------------------------------------------------------------------
EQ/Money Market $ 287.70 $ 884.31 $ 1,510.37 $ 3,214.06
EQ/Putnam Growth & Income Value $ 320.25 $ 981.19 $ 1,670.35 $ 3,524.74
EQ/Putnam Voyager $ 328.65 $ 1,006.09 $ 1,711.28 $ 3,603.32
EQ/Small Company Index $ 309.75 $ 950.01 $ 1,618.98 $ 3,425.60
EQ/Technology $ 350.70 $ 1,071.24 $ 1,818.06 $ 3,806.53
- ----------------------------------------------------------------------------------------------------------
Fee table 15
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 periods shown for each of the
variable investment options available as of December 31, 2003.
16 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 initial contribution of $25,000 for you
to purchase a contract. You may make additional contributions of at least
$1,000 each for NQ, QP and Rollover TSA contracts and $50 for Rollover IRA and
Roth Conversion IRA contracts, subject to limitations noted below. 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.
We may refuse to accept any contribution if the sum of all contributions under
all Equitable Accumulator(R) seriesSM contracts with the same annuitant would
then total more than $1,500,000. We reserve the right to limit aggregate
contributions made after the first contract year to 150% of first-year
contributions. 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. We may accept less than the minimum
initial contribution under a contract if an aggregate amount of contracts
purchased at the same time by an individual (including spouse) meets the
minimum.
- --------------------------------------------------------------------------------
The "annuitant" is the person who is the measuring life for determining
contract benefits. The annuitant is not necessarily the contract owner.
- --------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
Available for Limitations on
Contract type annuitant issue ages Source of contributions contributions
- ------------------------------------------------------------------------------------------------------------------------------------
NQ 0 through 85 o After-tax money. o No additional contributions may be
made after attainment of age 86, or,
o Paid to us by check or transfer of contract if later, the first contract
value in a tax-deferred exchange under anniversary.
Section 1035 of the Internal Revenue Code.
- ------------------------------------------------------------------------------------------------------------------------------------
Rollover IRA 20 through 85 o Eligible rollover distributions from TSA con- o No rollover or direct transfer
tracts or other 403(b) arrangements, contributions after attainment of
qualified plans, and governmental employer age 86, or, if later, the first
457(b) plans. contract anniversary.
o Rollovers from another traditional individual o Contributions after age 70-1/2 must
retirement arrangement. be net of required minimum
distributions.
o Direct custodian-to-custodian transfers from o Although we accept regular IRA
another traditional individual retirement contributions (limited to $3,000 for
arrangement. 2004 and $4,000 for 2005) under
Rollover IRA contracts, we intend
o Regular IRA contributions. that this contract be used primarily
for rollover and direct transfer
o Additional "catch-up" contributions. contributions.
o Additional catch-up contributions of
up to $500 can be made for the
calendar year 2004 or 2005 where the
owner is at least age 50 but under
age 70-1/2 at any time during the
calendar year for which the
contribution is made.
- ------------------------------------------------------------------------------------------------------------------------------------
Contract features and benefits 17
- ------------------------------------------------------------------------------------------------------------------------------------
Available for Limitations on
Contract type annuitant issue ages Source of contributions contributions
- ------------------------------------------------------------------------------------------------------------------------------------
Roth Conversion 20 through 85 o Rollovers from another Roth IRA. o No additional rollover or direct
IRA transfer contributions may be
o Conversion rollovers from a traditional IRA. made after attainment of age 86
or, if later, the first contract
o Direct transfers from another Roth IRA. anniversary.
o Regular Roth IRA contributions. o Conversion rollovers after age
70-1/2 must be net of required
o Additional catch-up contributions. minimum distributions for the
traditional IRA you are rolling
over.
o You cannot roll over funds from
a traditional IRA if your
adjusted gross income is
$100,000 or more.
o Although we accept regular Roth
IRA contributions (limited to
$3,000 for 2004 and $4,000 for
2005) under Roth IRA contracts,
we intend that this contract be
used primarily for rollover and
direct transfer contributions.
o Additional catch-up
contributions of up to $500 can
be made for the calendar year
2004 or 2005 where the owner is
at least age 50 at any time
during the calendar year for
which the contribution is made.
- ------------------------------------------------------------------------------------------------------------------------------------
Rollover TSA 20 through 85 o Direct transfers of pre-tax o No additional rollover or direct
funds from another contract or transfer contributions may be
arrangement under Section 403(b) made after attainment of age 86
of the Internal Revenue Code, or, if later, the first contract
complying with IRS Revenue anniversary.
Ruling 90-24.
o Rollover or direct transfer
o Eligible rollover distributions contributions after age 70-1/2
of pre-tax funds from other must be net of any required
403(b) plans. Subsequent minimum distributions.
contributions may also be
rollovers from qualified plans, o We do not accept
governmental employer 457(b) employer-remitted contributions.
plans and traditional IRAs.
- ------------------------------------------------------------------------------------------------------------------------------------
QP 20 through 75 o Only transfer contributions from o We do not accept regular ongoing
an existing defined contribution payroll contributions.
qualified plan trust.
o Only one additional transfer
o The plan must be qualified under contribution may be made during
Section 401(a) of the Internal a contract year.
Revenue Code.
o No additional transfer
o For 401(k) plans, transferred contributions may be made after
contributions may only include attainment of age 76 or, if
employee pre-tax contributions. later, the first contract
anniversary.
o Contributions after age 70-1/2
must be net of any required
minimum distributions.
o A separate QP contract must be
established for each plan
participant.
o We do not accept
employer-remitted contributions.
o We do not accept contributions
from defined benefit plans.
Please refer to Appendix II at the end of this Prospectus for a discussion of purchase considerations of QP contracts.
- ------------------------------------------------------------------------------------------------------------------------------------
See "Tax information" later in this Prospectus and in the SAI for a more
detailed discussion of sources of contributions and certain contribution
limitations.
For information on when contributions are credited under your contract see
"Dates and prices at which contract events occur" in "More information" later
in this Prospectus.
18 Contract features and benefits
OWNER AND ANNUITANT REQUIREMENTS
Under NQ contracts, the annuitant can be different from the owner. We do not
permit partnerships or limited liability corporations to be owners. We also
reserve the right to prohibit availability of this contract to other
non-natural owners. Only natural persons can be joint owners. In general we
will not permit a contract to be owned by a minor unless it is pursuant to the
Uniform Gifts to Minors Act or the Uniform Transfers to Minors Act in your
state.
Under all IRA and Rollover TSA contracts, the owner and annuitant must be the
same person. In some cases, an IRA contract may be held in a custodial
individual retirement account for the benefit of the individual annuitant. This
option may not be available under your contract.
Under QP contracts, the owner must be the trustee of the qualified plan and the
annuitant must be the plan participant/employee. See Appendix II at the end of
this Prospectus for more information on QP contracts.
- --------------------------------------------------------------------------------
A "participant" is an individual who is currently, or was formerly,
participating in an eligible employer's qualified plan or TSA plan.
- --------------------------------------------------------------------------------
HOW YOU CAN MAKE YOUR CONTRIBUTIONS
Except as noted below, contributions must be 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.
For your convenience, we will accept initial and additional contributions by
wire transmittal from certain broker-dealers who have agreements with us for
this purpose, including circumstances under which such contributions are
considered received by us when your order is taken by such broker-dealers.
Additional contributions may also be made under our automatic investment
program. These methods of payment are 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 payments. 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.
- --------------------------------------------------------------------------------
Our "business day" is generally any day the New York Stock Exchange is open for
trading and generally ends at 4:00 p.m. Eastern Time. A business day does not
include a 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/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 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 the Accumulator(R)
Select(SM) 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.
Equitable Life serves as the investment manager of the Portfolios of the EQ
Advisors Trust and the AXA Premier VIP Trust. 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. The advisers for these Portfolios, listed in the chart below, are
those who make the investment decisions for each Portfolio.
- ------------------------------------------------------------------------------------------------------------------------------------
AXA Premier VIP Trust
Portfolio Name Objective Adviser(s)
- ------------------------------------------------------------------------------------------------------------------------------------
AXA AGGRESSIVE ALLOCATION Seeks long-term capital appreciation. o Equitable Life
- ------------------------------------------------------------------------------------------------------------------------------------
AXA CONSERVATIVE ALLOCATION Seeks a high level of current income. o Equitable Life
- ------------------------------------------------------------------------------------------------------------------------------------
AXA CONSERVATIVE-PLUS Seeks current income and growth of capital, with a o Equitable Life
ALLOCATION greater emphasis on current income.
- ------------------------------------------------------------------------------------------------------------------------------------
AXA MODERATE ALLOCATION Seeks long-term capital appreciation and current o Equitable Life
income.
- ------------------------------------------------------------------------------------------------------------------------------------
AXA MODERATE-PLUS Seeks long-term capital appreciation and current o Equitable Life
ALLOCATION income, with a greater emphasis on capital
appreciation.
- ------------------------------------------------------------------------------------------------------------------------------------
AXA PREMIER VIP AGGRESSIVE Seeks long-term growth of capital. o Alliance Capital Management L.P.
EQUITY o MFS Investment Management
o Marsico Capital Management, LLC
o Provident Investment Counsel, Inc.
- ------------------------------------------------------------------------------------------------------------------------------------
AXA PREMIER VIP CORE BOND Seeks a balance of high current income and capital o BlackRock Advisors, Inc.
appreciation, consistent with a prudent level of o Pacific Investment Management Company LLC
risk.
- ------------------------------------------------------------------------------------------------------------------------------------
AXA PREMIER VIP HEALTH CARE Seeks long-term growth of capital. o A I M Capital Management, Inc.
o RCM Capital Management LLC
o Wellington Management Company, LLP
- ------------------------------------------------------------------------------------------------------------------------------------
AXA PREMIER VIP HIGH YIELD Seeks high total return through a combination of o Alliance Capital Management L.P.
current income and capital appreciation. o Pacific Investment Management Company LLC
- ------------------------------------------------------------------------------------------------------------------------------------
AXA PREMIER VIP Seeks long-term growth of capital. o Alliance Capital Management L.P., through its
INTERNATIONAL EQUITY Bernstein Investment Research and Management
Unit
o Bank of Ireland Asset Management (U.S.)
Limited
o Marsico Capital Management, LLC
- ------------------------------------------------------------------------------------------------------------------------------------
AXA PREMIER VIP LARGE CAP Seeks long-term growth of capital. o Alliance Capital Management L.P., through its
CORE EQUITY Bernstein Investment Research and Management
Unit
o Janus Capital Management LLC
o Thornburg Investment Management, Inc.
- ------------------------------------------------------------------------------------------------------------------------------------
20 Contract features and benefits
Portfolios of the Trusts (contined)
- ------------------------------------------------------------------------------------------------------------------------------------
AXA Premier VIP Trust
Portfolio Name Objective Adviser(s)
- ------------------------------------------------------------------------------------------------------------------------------------
AXA PREMIER VIP LARGE CAP Seeks long-term growth of capital. o Alliance Capital Management L.P.
GROWTH o RCM Capital Management LLC
o TCW Investment Management Company
- ------------------------------------------------------------------------------------------------------------------------------------
AXA PREMIER VIP LARGE CAP Seeks long-term growth of capital. o Alliance Capital Management L.P.
VALUE o Institutional Capital Corporation
o MFS Investment Management
- ------------------------------------------------------------------------------------------------------------------------------------
AXA PREMIER VIP SMALL/MID Seeks long-term growth of capital. o Alliance Capital Management L.P.
CAP GROWTH o Franklin Advisers, Inc.
o Provident Investment Counsel, Inc.
- ------------------------------------------------------------------------------------------------------------------------------------
AXA PREMIER VIP SMALL/MID Seeks long-term growth of capital. o AXA Rosenberg Investment Management LLC
CAP VALUE o TCW Investment Management Company
o Wellington Management Company, LLP
- ------------------------------------------------------------------------------------------------------------------------------------
AXA PREMIER VIP TECHNOLOGY Seeks long-term growth of capital. o Firsthand Capital Management, Inc.
o RCM Capital Management LLC
o Wellington Management Company, LLP
- ------------------------------------------------------------------------------------------------------------------------------------
EQ Advisors Trust
Portfolio Name Objective Adviser(s)
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/ALLIANCE COMMON STOCK Seeks to achieve long-term growth of capital. o Alliance Capital Management L.P.
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/ALLIANCE GROWTH AND Seeks to provide a high total return. o Alliance Capital Management L.P.
INCOME
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/ALLIANCE INTERMEDIATE Seeks to achieve high current income consistent o Alliance Capital Management L.P.
GOVERNMENT SECURITIES with relative stability of principal.
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/ALLIANCE INTERNATIONAL Seeks to achieve long-term growth of capital. o Alliance Capital Management L.P.
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/ALLIANCE PREMIER GROWTH Seeks to achieve long-term growth of capital. o Alliance Capital Management L.P.
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/ALLIANCE QUALITY BOND Seeks to achieve high current income consistent o Alliance Capital Management L.P.
with moderate risk to capital.
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/ALLIANCE SMALL CAP Seeks to achieve long-term growth of capital. o Alliance Capital Management L.P.
GROWTH
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/BERNSTEIN DIVERSIFIED VALUE Seeks capital appreciation. o Alliance Capital Management L.P.,
through its Bernstein Investment Research
and Management Unit
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/CALVERT SOCIALLY Seeks long-term capital appreciation. o Calvert Asset Management Company, Inc.
RESPONSIBLE and Brown Capital Management, Inc.
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/CAPITAL GUARDIAN To achieve long-term growth of capital. o Capital Guardian Trust Company
INTERNATIONAL
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/CAPITAL GUARDIAN Seeks to achieve long-term growth of capital. o Capital Guardian Trust Company
RESEARCH
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/CAPITAL GUARDIAN U.S. Seeks to achieve long-term growth of capital. o Capital Guardian Trust Company
EQUITY
- ------------------------------------------------------------------------------------------------------------------------------------
Contract features and benefits 21
Portfolios of the Trusts (continued)
- ------------------------------------------------------------------------------------------------------------------------------------
EQ Advisors Trust
Portfolio Name Objective Adviser(s)
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/EMERGING MARKETS EQUITY Seeks long-term capital appreciation. o Morgan Stanley Investment Management, Inc.
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/EQUITY 500 INDEX Seeks a total return before expenses that o 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. o Evergreen Investment Management Company, LLC
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/FI MID CAP Seeks long-term growth of capital. o Fidelity Management & Research Company
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/FI SMALL/MID CAP VALUE Seeks long-term capital appreciation. o Fidelity Management & Research Company
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/J.P. MORGAN CORE BOND Seeks to provide a high total return consistent o J.P. Morgan Investment Management Inc.
with moderate risk to capital and maintenance
of liquidity.
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/JANUS LARGE CAP GROWTH Seeks long-term growth of capital. o Janus Capital Management LLC
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/LAZARD SMALL CAP VALUE Seeks capital appreciation. o Lazard Asset Management, LLC
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/MARSICO FOCUS Seeks long-term growth of capital. o Marsico Capital Management, LLC
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/MERCURY BASIC VALUE Seeks capital appreciation and secondarily, income. o Mercury Advisors
EQUITY
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/MERCURY INTERNATIONAL Seeks capital appreciation. o Merrill Lynch Investment Managers
VALUE International Limited
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/MFS EMERGING GROWTH Seeks to provide long-term capital growth. o MFS Investment Management
COMPANIES
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/MFS INVESTORS TRUST Seeks long-term growth of capital with secondary o MFS Investment Management
objective to seek reasonable current income.
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/MONEY MARKET Seeks to obtain a high level of current income, o Alliance Capital Management L.P.
preserve its assets and maintain liquidity.
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/PUTNAM GROWTH & INCOME Seeks capital growth. Current income is a o Putnam Investment Management, LLC
VALUE secondary objective.
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/PUTNAM VOYAGER Seeks long-term growth of capital and any increased o Putnam Investment Management, LLC
income that results from this growth.
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/SMALL COMPANY INDEX Seeks to replicate as closely as possible (before o Alliance Capital Management L.P.
the deduction of portfolio expenses) the total
return of the Russell 2000 Index.
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/TECHNOLOGY Seeks to achieve long-term growth of capital. o Firsthand Capital Management, Inc.
o RCM Capital Management LLC
o Wellington Management Company, LLP
- ------------------------------------------------------------------------------------------------------------------------------------
You should consider the investment objectives, risks and charges and expenses
of the Portfolios carefully before investing. The prospectuses for the Trusts
contain this and other important information about the Portfolios. The
prospectuses should be read carefully before investing. In order to obtain
copies of Trust prospectuses that do not accompany this Prospectus, you may
call one of our customer service representatives at 1-800-789-7771.
22 Contract features and benefits
FIXED MATURITY OPTIONS
We offer fixed maturity options with maturity dates ranging from one to ten
years. We will not accept allocations to a fixed maturity option if on the date
the contribution or transfer is to be applied: (i) the fixed maturity option's
maturity date is within the current calendar year; and (ii) the rate to
maturity is 3%. This means that at points in time there may be no fixed
maturity options available. You can allocate your contributions to one or more
of these fixed maturity options. These amounts become part of a non-unitized
separate account. 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 all states. Check with your financial
professional to see if fixed maturity options are available in your state.
- --------------------------------------------------------------------------------
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.
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 amounts 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 February 15th for each of the maturity years 2005 through
2014. Not all of these fixed maturity options will be available for annuitant
ages 76 and older. 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.
YOUR CHOICES AT THE MATURITY DATE. We will notify you on or before December
31st of the year 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.
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 next
available fixed maturity option with the earliest maturity date. As of February
13, 2004, the next available maturity date was February 15, 2010.
MARKET VALUE ADJUSTMENT. If you make any withdrawals (including transfers,
surrender 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 III 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 three ways to allocate your contributions under your
contract: self-directed, principal assurance or dollar cost averaging.
SELF-DIRECTED ALLOCATION
You may allocate your contributions to one or more, or all, of the variable
investment options and fixed maturity options. Allocations must be in whole
percentages and you may change your allocations at any time. However, the total
of your allocations must equal 100%. If the annuitant is age 76 or older, you
may allocate contributions to fixed maturity options if their maturities are
five years or less. Also, you may not allocate amounts to fixed maturity
options with maturity dates that are later than the February 14th immediately
following the date annuity payments are to begin.
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 7 years from your contract date. If you make any withdrawals or
transfers from the fixed maturity option before the option's maturity date, the
amount in the fixed maturity option will be adjusted and may no longer grow to
equal your initial contribution under the principal assurance allocation.
Contract features and benefits 23
Principal assurance will not be available if none of those maturity dates is
available. You allocate the rest of your contribution to the variable
investment options however you choose.
For example, if your initial contribution is $25,000, and on February 13, 2004
you chose the fixed maturity option with a maturity date of February 15, 2014,
since the rate to maturity was 4.15% on February 13, 2004, we would have
allocated $16,638 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 $25,000.
The principal assurance allocation is only available for annuitant ages 75 or
younger when the contract is issued. If you anticipate taking required minimum
distributions, you should consider whether your values in the variable
investment options are sufficient to meet your required minimum distributions.
See "Tax information" later in this Prospectus and in the SAI.
You may not elect principal assurance if the 12 month dollar cost averaging
program is in effect.
DOLLAR COST AVERAGING
We offer two dollar cost averaging programs. You may only participate in one
program at a time. Each program allows you to gradually transfer amounts from
the EQ/Money Market option to the other variable investment options by
periodically transferring approximately the same dollar amount to the other
variable investment options you select. This will cause you to purchase more
units if the unit value is low and fewer units if the unit value is high.
Therefore, you may get a lower average cost per unit over the long term. These
plans of investing, however, do not guarantee that you will earn a profit or be
protected against losses. You may not make transfers to the fixed maturity
options.
- --------------------------------------------------------------------------------
Units measure your value in each variable investment option.
- --------------------------------------------------------------------------------
12 MONTH DOLLAR COST AVERAGING PROGRAM. You may dollar cost average from the
EQ/Money Market option into any of the other variable investment options. You
may elect to participate in the 12 month dollar cost averaging program at any
time subject to the age limitation on contributions described in Section 1 of
this Prospectus. Contributions into the account for 12 month dollar cost
averaging may not be transfers from other investment options. You must allocate
your entire initial contribution into the EQ/Money Market option if you are
selecting the 12 month dollar cost averaging program at application to purchase
an Accumulator(R) Select(SM) contract; thereafter your initial allocation to any
12 month dollar cost averaging program time period must be at least $2,000 and
any subsequent contribution to that same time period must be at least $250. You
may only have one time period in effect at any time. We will transfer your
value in the EQ/Money Market option into the other variable investment options
that you select over the next 12 months or such other period we may offer. Once
the time period then in effect has run, you may then select to participate in
the dollar cost averaging program for an additional time period. At that time,
you may also select a different allocation for transfers to the variable
investment options, or, if you wish, we will continue to use the selection that
you have previously made.
Currently, the transfer date will be the same day of the month as the contract
date, but not later than the 28th. For a 12 month dollar cost averaging program
selected after application, the first transfer date and each subsequent
transfer date for the time period selected will be one month from the date the
first contribution is made into the 12 month dollar cost averaging program, but
not later than the 28th of the month. All amounts will be transferred out by
the end of the time period then in effect. Under this program we will not
deduct the mortality and expense risks, administrative and distribution charges
from assets in the EQ/Money Market option.
You may not transfer amounts to the EQ/Money Market option established for this
program that are not part of the 12 month dollar cost averaging program. The
only amounts that should be transferred from the EQ/Money Market option are
your regularly scheduled transfers to the other variable investment options. If
you request to transfer or withdraw any other amounts from the EQ/Money Market
option, we will transfer all of the value that you have remaining in the
account for 12 month dollar cost averaging to the investment options according
to the allocation percentages we have on file for you. You may ask us to cancel
your participation at any time.
GENERAL DOLLAR COST AVERAGING PROGRAM. If your value in the EQ/Money Market
option is at least $5,000, you may choose, at any time, to have a specified
dollar amount or percentage of your value transferred from that option to the
other variable investment options. You can select to have transfers made on a
monthly, quarterly, or annual basis. The transfer date will be the same
calendar day of the month as the contract date, but not later than the 28th day
of the month. You can also specify the number of transfers or instruct us to
continue making the transfers until all amounts in the EQ/Money Market option
have been transferred out.
The minimum amount that we will transfer each time is $250. The maximum amount
we will transfer is equal to your value in the EQ/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/Money Market option is equal to
or less than the amount you have elected to have transferred, the entire amount
will be transferred. The general dollar cost averaging program will then end.
You may change the transfer amount once each contract year or cancel this
program at any time.
----------------------------------
You may not elect general dollar cost averaging or 12 month dollar cost
averaging if you are participating in the rebalancing program. See
"Transferring your money among investment options" later in this Prospectus.
You may not elect the 12-Month Dollar Cost Averaging program if the principal
assurance program is in effect.
YOUR BENEFIT BASE
The benefit base is used to calculate the guaranteed minimum income benefit and
the 5% roll up to age 80 guaranteed minimum death benefit. Your benefit base is
not an account value or a cash value. See "Our baseBUILDER option" and
"Guaranteed minimum death benefit" below. The benefit base is equal to:
o your initial contribution and any additional contributions to the con-
24 Contract features and benefits
tract; plus
o daily interest; less
o a deduction that reflects any withdrawals you make (the amount of the
deduction is described under "How withdrawals affect your guaranteed
minimum income benefit and guaranteed minimum death benefit" in "Accessing
your money" later in this Prospectus).
The effective annual interest rate credited to the benefit base is:
o 5% for the benefit base with respect to the variable investment options
(other than the AXA Premier VIP Core Bond, EQ/Alliance Intermediate
Government Securities, EQ/Money Market and EQ/Alliance Quality Bond
options), and the 12 month dollar cost averaging program; and
o 3% for the benefit base with respect to the AXA Premier VIP Core Bond,
EQ/Alliance Intermediate Government Securities, EQ/Money Market and
EQ/Alliance Quality Bond options, the fixed maturity options and the loan
reserve account under Rollover TSA (if applicable).
No interest is credited to the benefit base after the contract date anniversary
following the annuitant's 80th birthday.
ANNUITY PURCHASE FACTORS
Annuity purchase factors are the factors applied to determine your periodic
payments under the guaranteed minimum income benefit and annuity payout
options. The guaranteed minimum income benefit is discussed in "Our baseBUILDER
option" and annuity payout options are discussed in "Accessing your money"
later in this Prospectus. The guaranteed annuity purchase factors are those
factors specified in your contract. The current annuity purchase factors are
those factors that are in effect at any given time. Annuity purchase factors
are based on interest rates, mortality tables, frequency of payments, the form
of annuity benefit and the annuitant's (and any joint annuitant's) age and sex
in certain instances.
OUR BASEBUILDER OPTION
The baseBUILDER option offers you a guaranteed minimum income benefit combined
with the guaranteed minimum death benefit available under the contract. The
baseBUILDER benefit is available if the annuitant is between the ages of 20 and
75 at the time the contract is issued. There is an additional charge for the
baseBUILDER benefit which is described under "baseBUILDER benefit charge" in
"Charges and expenses" later in this Prospectus. If you are purchasing this
contract to fund a Charitable Remainder Trust, the guaranteed minimum income
benefit is generally not available. Subject to our rules, the baseBUILDER
option may be available for certain split-funded Charitable Remainder Trusts.
The guaranteed minimum income benefit component of the baseBUILDER option is
described below. Whether you elect the baseBUILDER option or not, the
guaranteed minimum death benefit is provided under the contract. The guaranteed
minimum death benefit is described under "Guaranteed minimum death benefit"
below in this section.
The guaranteed minimum income benefit guarantees you a minimum amount of
lifetime income under our Income Manager contract. Only a life with a period
certain Income Manager payout annuity contract is available. You choose whether
you want the option to be paid on a single or joint life basis at the time you
exercise the option. The maximum period certain available under the Income
Manager payout option is 10 years. This period may be shorter, depending on the
annuitant's age as follows:
- ----------------------------------------------
Level payments
- ----------------------------------------------
Period certain years
Annuitant's Age ---------------------
at exercise IRAs NQ
- ------------------ ------------ ---------
60 to 75 10 10
76 9 10
77 8 10
78 7 10
79 7 10
80 7 10
81 7 9
82 7 8
83 7 7
- ----------------------------------------------
We may also make other forms of payout options available. For a description of
payout options, see "Your annuity payout options" in "Accessing your money"
later in this Prospectus.
- --------------------------------------------------------------------------------
The guaranteed minimum income benefit, which is also known as a living benefit,
should be regarded as a safety net only. It provides income protection if you
elect an income payout while the annuitant is alive.
- --------------------------------------------------------------------------------
When you exercise the guaranteed minimum income benefit, the annual lifetime
income that you will receive will be the greater of (i) your guaranteed minimum
income benefit which is calculated by applying your benefit base less any
outstanding loan plus accrued interest (applies to Rollover TSA only) at
guaranteed annuity purchase factors, or (ii) the income provided by applying
your actual account value at our then current annuity purchase factors. The
benefit base is applied only to the baseBUILDER guaranteed annuity purchase
factors in your contract and not to any other guaranteed or current annuity
purchase rates. The amount of income you actually receive will be determined
when we receive your request to exercise the benefit.
When you elect to receive annual lifetime income, your contract will terminate
and you will receive a new contract for the annuity payout option. For a
discussion of when your payments will begin and end, see "Exercise of
guaranteed minimum income benefit" below.
Before you elect baseBUILDER, you should consider the fact that the guaranteed
minimum income benefit provides a form of insurance and is based on
conservative actuarial factors. The guaranteed annuity purchase factors we use
to determine your Income Manager benefit under baseBUILDER are more
conservative than the guaranteed annuity purchase factors we use for the Income
Manager payout annuity option. This means that, assuming the same amount is
applied to purchase the benefit and that we use guaranteed annuity purchase
factors to compute the benefit, each periodic payment under the baseBUILDER
Income Manager will be smaller than each periodic payment under the Income
Manager payout annuity option. Therefore, even if your account value is less
than your benefit base, you may generate more
Contract features and benefits 25
income by applying your account value to current annuity purchase factors. We
will make this comparison for you when the need arises.
ILLUSTRATIONS OF GUARANTEED MINIMUM INCOME BENEFIT. The table below
illustrates the guaranteed minimum income benefit amounts per $100,000 of
initial contribution, for a male annuitant age 60 (at issue) on the contract
date anniversaries indicated, who has elected the life annuity fixed payout
option, using the guaranteed annuity purchase factors as of the date of this
Prospectus, assuming no additional contributions, withdrawals or loans under
Rollover TSA contracts, and assuming there were no allocations to the AXA
Premier VIP Core Bond, EQ/Alliance Intermediate Government Securities, EQ/Money
Market or EQ/Alliance Quality Bond options, the fixed maturity options or the
loan reserve account.
- -------------------------------------------------------
Guaranteed minimum income
Contract date benefit -- annual income
anniversary at exercise payable for life
- -------------------------------------------------------
10 $10,816
15 $16,132
- -------------------------------------------------------
EXERCISE OF GUARANTEED MINIMUM INCOME BENEFIT. On each contract date
anniversary that you are eligible to exercise the guaranteed minimum income
benefit, we will send you an eligibility notice illustrating how much income
could be provided as of the contract anniversary. You must notify us within 30
days following the contract date anniversary if you want to exercise the
guaranteed minimum income benefit. You must return your contract to us in order
to exercise this benefit. You will begin receiving annual payments one year
after the annuity payout contract is issued. You may choose to take a
withdrawal prior to exercising the guaranteed minimum income benefit, which
will reduce your payments. You may not partially exercise this benefit. See
"Accessing your money" under "Withdrawing your account value" later in this
Prospectus. Payments end with the last payment before the annuitant's (or joint
annuitant's, if applicable) death.
You will be eligible to exercise the guaranteed minimum income benefit as
follows:
o If the annuitant was at least age 20 and no older than age 44 when the
contract was issued, you are eligible to exercise the guaranteed minimum
income benefit within 30 days following each contract date anniversary
beginning with the 15th contract date anniversary.
o If the annuitant was at least age 45 and no older than age 53 when the
contract was issued, you are eligible to exercise the guaranteed minimum
income benefit within 30 days following each contract date anniversary
after the annuitant is age 60.
o If the annuitant was at least age 54 and no older than age 75 when the
contract was issued, you are eligible to exercise the guaranteed minimum
income benefit within 30 days following each contract date anniversary
beginning with the 7th contract date anniversary.
Please note:
(i) the latest date you may exercise the guaranteed minimum income benefit is
the contract date anniversary following the annuitant's 83rd birthday;
and
(ii) if the annuitant was age 75 when the contract was issued, the only time
you may exercise the guaranteed minimum income benefit is within 30 days
following the first and second contract date anniversary that it becomes
available;
(iii) if the annuitant was older than age 63 at the time an IRA, QP or Rollover
TSA contract was issued, the baseBUILDER may not be an appropriate
feature because the minimum distributions required by tax law generally
must begin before the guaranteed minimum income benefit can be exercised;
(iv) for QP and Rollover TSA contracts, if you are eligible to exercise your
guaranteed minimum income benefit, we will first roll over amounts in
such contract to a Rollover IRA contract. You will be the owner of the
Rollover IRA contract; and
(v) For a successor owner/annuitant, the earliest exercise date is based on
the original contract issue date and the age of the successor
owner/annuitant as of the Processing Date successor owner/annuitant takes
effect.
Please see both "Termination of your contract" in "Determining your contract
value" and "How withdrawals affect your guaranteed minimum income benefit and
guaranteed minimum death benefit" in "Accessing your money" later in this
Prospectus for more information on these guaranteed benefits.
GUARANTEED MINIMUM DEATH BENEFIT
A guaranteed minimum death benefit is provided as part of the baseBUILDER
benefit. A guaranteed minimum death benefit is also provided under your
contract even if you don't elect baseBUILDER. In this case, the baseBUILDER
benefit charge does not apply.
GUARANTEED MINIMUM DEATH BENEFIT APPLICABLE FOR ANNUITANT AGES 0 THROUGH 79 AT
ISSUE OF NQ CONTRACTS; 20 THROUGH 79 AT ISSUE OF ROLLOVER IRA, ROTH CONVERSION
IRA AND ROLLOVER TSA CONTRACTS; AND 20 THROUGH 75 AT ISSUE OF QP CONTRACTS.
You must elect either the "5% roll up to age 80" or the "annual ratchet to age
80" guaranteed minimum death benefit when you apply for a contract. Once you
have made your election, you may not change it.
5% ROLL UP TO AGE 80. The guaranteed minimum death benefit is equal to the
benefit base described earlier in "Your benefit base," and is subject to state
availability.
ANNUAL RATCHET TO AGE 80. On the contract date, your guaranteed minimum death
benefit equals your initial contribution. Then, on each contract date
anniversary, we will determine your guaranteed minimum death benefit by
comparing your current guaranteed minimum death benefit to your account value
on that contract date anniversary. If your account value is higher than your
guaranteed minimum death benefit, we will increase your guaranteed minimum
death benefit to equal your account value. On the other hand, if your account
value on the contract date anniversary is less than your guaranteed minimum
death benefit, we will not adjust your guaranteed minimum death benefit either
up or down. If you make additional contributions, we will increase your current
guaranteed minimum death benefit by the dollar amount of the contribution on
the date the contribution is allocated to your investment options.
26 Contract features and benefits
If you take a withdrawal from your contract, we will reduce your guaranteed
minimum death benefit on the date you take the withdrawal.
GUARANTEED MINIMUM DEATH BENEFIT APPLICABLE FOR ANNUITANT AGES 80 THROUGH 85 AT
ISSUE OF NQ, ROLLOVER IRA, ROTH CONVERSION IRA AND ROLLOVER TSA CONTRACTS.
On the contract date, your guaranteed minimum death benefit equals your initial
contribution. Thereafter, it will be increased by the dollar amount of any
additional contributions. We will reduce your guaranteed minimum death benefit
if you take any withdrawals.
----------------------------------
Please see both "Termination of your contract" in "Determining your contract
value" and "How withdrawals affect your guaranteed minimum income benefit and
guaranteed minimum death benefit" in "Accessing your money" later in this
Prospectus for more information on these guaranteed benefits.
See Appendix IV at the end of this Prospectus for an example of how we
calculate the guaranteed minimum death benefit.
Protection Plus
Protection Plus provides an additional death benefit as described below. See
the appropriate part of "Tax information" later in this Prospectus for the
potential tax consequences of electing to purchase the Protection Plus feature
in an NQ or IRA contract.
If the annuitant is 69 or younger when we issue your Contract (or if the
successor owner/annuitant is 69 or younger when he or she becomes the successor
owner/annuitant), the death benefit will be:
the greater of:
o the account value or
o any applicable guaranteed minimum death benefit
Increased by:
40% of the lesser of:
o the total net contributions or
o the death benefit less total net contributions
For purposes of calculating your Protection Plus benefit, the following
applies: (i) "Net contributions" are the total contributions made (or, if
applicable, the total amount that would otherwise have been paid as a death
benefit had the successor owner/annuitant election not been made plus any
subsequent contributions) reduced on a pro rata basis to reflect withdrawals
(including surrender charges and loans). Reduction on a pro rata basis means
that we calculate the percentage of the current account value that is being
withdrawn and we reduce net contributions by that percentage. For example, if
the account value is $30,000 and you withdraw $12,000, you have withdrawn 40%
of your account value. If contributions aggregated $40,000 before the
withdrawal, it would be reduced by $16,000 ($40,000 x .40) and net
contributions after the withdrawal would be $24,000 ($40,000-$16,000); (ii)
"Death benefit" is equal to the greater of the account value as of the date we
receive satisfactory proof of death or any applicable guaranteed minimum death
benefit as of the date of death.
If the annuitant is age 70 through 75 when we issue your contract (or if the
successor owner/annuitant is between the ages of 70 and 75 when he or she
becomes the successor owner/annuitant and Protection Plus had been elected at
issue), the death benefit will be:
the greater of:
o the account value or
o any applicable guaranteed minimum death benefit
Increased by:
25% of the lesser of:
o the total net contributions (as described above) or
o the death benefit (as described above) less total net contributions
Protection Plus must be elected when the contract is first issued: neither the
owner nor the successor owner/annuitant can add it subsequently. Ask your
financial professional if this feature is available in your state.
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 of the full amount of your contribution. To exercise this
cancellation right you must mail the contract, with a signed letter of
instruction electing this right, to our processing office within 10 days after
you receive it. If state law requires, this "free look" period may be longer.
We may require that you wait six months before you may 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 and in the SAI for
possible consequences of cancelling your contract.
In addition to the cancellation right described above, if you fully convert an
existing traditional IRA contract to a Roth Conversion IRA contract, you may
cancel your Roth Conversion IRA contract and return to a Rollover IRA contract.
Our processing office, or your financial professional, can provide you with the
cancellation instructions.
Contract features and benefits 27
2. Determining your contract's value
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YOUR ACCOUNT VALUE AND CASH VALUE
Your "account value" is the total of the values you have in: (i) the variable
investment options; (ii) market adjusted amounts in the fixed maturity options;
and (iii) the loan reserve account (applicable to Rollover TSA contracts only).
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 the
amount of any outstanding loan plus accrued interest (applicable to Rollover
TSA contracts only). Please see "Surrendering 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.
The unit value for each variable investment option depends on the investment
performance of that option, less daily charges for:
(i) mortality and expense;
(ii) administrative expenses; and
(iii) distribution charges.
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;
(iii) increased to reflect a transfer into, or decreased to reflect a transfer
out of, a variable investment option; or
(iv) increased or decreased to reflect a transfer of your loan amount from or
to the loan reserve account under a Rollover TSA contract.
In addition, when we deduct the baseBUILDER benefit charge and/or the
Protection Plus benefit charge the number of units credited to your contract
will be reduced. 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, provided
there have been no withdrawals or transfers.
TERMINATION OF YOUR CONTRACT
Your contract will terminate without value if your account value is
insufficient to pay any applicable charges when due. Your account value could
become insufficient due to withdrawals and/or poor market performance. Upon
such termination, you will lose any applicable guaranteed benefits.
28 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 may not transfer to a fixed maturity option that matures in the current
calendar year or that has a rate to maturity of 3% or less.
o You may not transfer any amount to the 12-month dollar cost averaging
program.
o If the annuitant is 76 or older, you must limit your transfers to fixed
maturity options to those with maturities of five years or less. Also, the
maturity dates may be no later than the February 15th immediately following
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.
In addition, we reserve the right to restrict transfers among variable
investment options as described in your contract, including limitations on the
number, frequency, or dollar amount of transfers.
You may request a transfer in writing, by telephone using TOPS or through
EQAccess. You must send in all written transfer requests directly to our
processing office. Transfer requests should specify:
(1) the contract number,
(2) the dollar amounts or percentages of your current account value 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 Accumulator(R) Select(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.
Frequent transfers, including market timing and other program trading
strategies, may be disruptive to the underlying portfolios in which the
variable investment options invest. Disruptive transfer activity may hurt the
long term performance of a portfolio by, for example, requiring it to maintain
larger amounts of cash or to liquidate portfolio holdings at a disadvantageous
time or price. We currently use the procedures described below to discourage
disruptive transfer activity in AXA Premier VIP Trust and EQ Advisors Trust.
You should understand, however, that these procedures are subject to the
following limitations: (1) they do not eliminate the possibility that
disruptive transfer activity, including market timing, will occur or that
portfolio performance will be affected by such activity; (2) the design of
these procedures involves inherently subjective judgments, which we and AXA
Premier VIP Trust and EQ Advisors Trust seek to make in a fair and reasonable
manner consistent with interests of all policy and contract owners. Certain
frequent transfer activities attempt to exploit inefficiencies in how portfolio
securities are valued. Please see the prospectuses for the underlying
portfolios for more information on how portfolio shares are priced.
If we determine that your transfer patterns are disruptive, 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. 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 reduce disruptive activity, we
monitor the frequency of transfers, including the size of transfers in relation
to portfolio assets, in each underlying portfolio. When a potentially
disruptive transfer into or out of a portfolio occurs on a day when the
portfolio's aggregate deposits or aggregate redemptions exceed our monitoring
threshold, we may take the actions described above to restrict availability of
voice, fax and automated transaction services. We currently apply such action
for the remaining life of each affected contract. We also currently provide a
letter to owners who have engaged in disruptive transfer activity of our
intention to restrict access to communication 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 potentially disruptive transfer
activity and our monitoring procedures and thresholds, as well as change our
procedures to restrict this activity.
Our ability to monitor potentially disruptive transfer activity is limited in
certain circumstances. Group annuity contracts may be owned by retirement plans
on whose behalf we provide transfer instructions on an omnibus (aggregate)
basis, which may mask the disruptive transfer activity of individual plan
participants, and/or interfere with our ability to restrict communication
services. Also, underlying portfolios that are not in AXA Premier VIP Trust or
EQ Advisors Trust may be available for investment through companies that may
have policies and procedures regarding disruptive transfer activity that are
different from ours. Please see the prospectuses for those underlying
portfolios for more information.
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
Transferring your money among investment options 29
(b) how often you want the rebalancing to occur (quarterly, semiannually or
annually on a contract year basis).
Rebalancing will occur on the same day of the month as the contract date. If a
contract is established after the 28th, rebalancing will occur on the first
business day of the month following the contract issue date.
While your rebalancing program is in effect, we will transfer amounts among the
variable investment options 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. 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 canceled in writing.
You may not elect the rebalancing program if you are participating in the
general dollar cost averaging or 12 month dollar cost averaging program.
Rebalancing is not available for amounts you have allocated in the fixed
maturity options.
30 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. If you request to withdraw more than 90% of
a contract's current cash value, we will treat it as a request to surrender the
contract for its cash value. See "Surrendering your contract to receive its
cash value" below. For the tax consequences of withdrawals, see "Tax
information" later in this Prospectus and in the SAI.
Please see "Termination of your contract" in "Determining your contract value"
earlier in this Prospectus and "How withdrawals affect your guaranteed minimum
income benefit and guaranteed minimum death benefit" below for more information
on how withdrawals affect your guaranteed benefits and could potentially cause
your contract to terminate.
- --------------------------------------------------------------------------------
Method of withdrawal
- --------------------------------------------------------------------------------
Lifetime
required
Substantially minimum
Contract Lump sum Systematic equal distribution
- --------------------------------------------------------------------------------
NQ Yes Yes No No
Rollover IRA Yes Yes Yes Yes
Roth
Conversion IRA Yes Yes Yes No
QP Yes No No Yes
Rollover TSA* Yes Yes No Yes
- --------------------------------------------------------------------------------
* For some Rollover TSA contracts, your ability to take withdrawals, loans or
surrender your contract may be limited. You must provide withdrawal
restriction information when you apply for a contract. See "Tax Sheltered
Annuity contracts (TSAs)" in "Tax information" later in this Prospectus and
in the SAI.
LUMP SUM WITHDRAWALS
(All contracts)
You may take lump sum withdrawals from your account value at any time.
(Rollover TSA contracts may have restrictions.) The minimum amount you may
withdraw is $300.
Under Rollover TSA contracts, if a loan is outstanding, you may only take lump
sum withdrawals as long as the cash value remaining after any withdrawal equals
at least 10% of the outstanding loan plus accrued interest.
SYSTEMATIC WITHDRAWALS
(NQ, Rollover TSA and IRA contracts)
You may take systematic withdrawals of a particular dollar amount or a
particular percentage of your account value. (Rollover TSA contracts may have
restrictions).
You may take systematic withdrawals on a monthly, quarterly or annual basis as
long as the withdrawals do not exceed the following percentages of your account
value: 1.2% monthly, 3.6% quarterly and 15.0% annually. The minimum amount you
may take in each systematic withdrawal is $250. If the amount withdrawn would
be less than $250 on the date a withdrawal is to be taken, we will not make a
payment and we will terminate your systematic withdrawal election.
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, we
will make the withdrawals on the same calendar day of the month as the contract
date. You must wait at least 28 days after your contract is issued before your
systematic withdrawals can begin.
You may elect to take systematic withdrawals at any time. If you own an IRA
contract, you may elect this withdrawal method only if you are between ages
59-1/2 and 70-1/2.
You may change the payment frequency, the amount or the percentage of your
systematic withdrawals, once each contract year. However, you may not change
the amount or percentage in any contract year in which you have already taken a
lump sum withdrawal. You can cancel the systematic withdrawal option at any
time.
SUBSTANTIALLY EQUAL WITHDRAWALS
(All IRA contracts)
We offer our "substantially equal withdrawals option" to allow you to receive
distributions from your account value without triggering the 10% additional
federal income tax penalty, which normally applies to distributions made before
age 59-1/2. See "Tax information" later in this Prospectus and in the SAI. We
use one of the IRS-approved methods for doing this; this is not the exclusive
method of meeting this exception. After consultation with your tax adviser, you
may decide to use another method which would require you to compute amounts
yourself and request lump sum withdrawals. In such a case, a withdrawal charge
may apply. Once you begin to take substantially equal withdrawals, you should
not stop them or change the pattern of your withdrawals until after the later
of age 59-1/2 or five full years after the first withdrawal. If you stop or
change the withdrawals or take a lump sum withdrawal, you may be liable for the
10% federal tax penalty that would have otherwise been due on prior withdrawals
made under this option and for any interest on the delayed payment of the
penalty.
In accordance with IRS guidance, an individual who has elected to receive
substantially equal withdrawals may change, without penalty, from one of the
IRS-approved methods of calculating fixed payments to another IRS-approved
method (similar to the required minimum distribution rules) of calculating
payments which vary each year.
You may elect to take substantially equal withdrawals at any time before age
59-1/2. 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. You may not elect to
receive the first payment in the same contract year in which you took a lump
sum withdrawal. We will calculate the amount of your substantially equal
withdrawals using the IRS-approved method we offer. The payments will be made
monthly,
Accessing your money 31
quarterly or annually as you select. These payments will continue until we
receive written notice from you to cancel this option or you take a lump sum
withdrawal. You may elect to start receiving substantially equal withdrawals
again, but the payments may not restart in the same contract year in which you
took a lump sum withdrawal. We will calculate the new withdrawal amount.
LIFETIME REQUIRED MINIMUM DISTRIBUTION WITHDRAWALS
(Rollover IRA, QP and Rollover TSA contracts only -- See "Tax information"
later in this Prospectus and in the SAI)
We offer the minimum distribution withdrawal option to help you meet 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 or in any later year. The
minimum amount we will pay out is $250. Currently, minimum distribution
withdrawal payments will be made annually. See "Required minimum distributions"
in "Tax information" later in this Prospectus and in the SAI for your specific
type of retirement arrangement.
Under Rollover TSA contracts, you may not elect minimum distribution
withdrawals if a loan is outstanding.
- --------------------------------------------------------------------------------
For Rollover IRA and Rollover TSA contracts, 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).
- --------------------------------------------------------------------------------
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) first. A market value adjustment may apply to
withdrawals from the fixed maturity options. If those amounts are insufficient,
we will deduct all or a portion of the charge from amounts in the 12 month
dollar cost averaging program.
HOW WITHDRAWALS AFFECT YOUR GUARANTEED MINIMUM INCOME BENEFIT AND GUARANTEED
MINIMUM DEATH BENEFIT
Withdrawals will reduce your guaranteed benefits on either a dollar-for-dollar
basis or on a pro rata basis as explained below:
INCOME BENEFIT AND DEATH BENEFIT
5% roll up to age 80 -- If you elect the 5% roll up to age 80 guaranteed
minimum death benefit, your benefit base will be reduced on a dollar-for-dollar
basis as long as the sum of your withdrawals in a contract year is 5% or less
of the benefit base on the most recent contract date anniversary. Once you take
a withdrawal that causes the sum of your withdrawals in a contract year to
exceed 5% of the benefit base on the most recent contract date anniversary,
that withdrawal and any subsequent withdrawals in that same contract year will
reduce your benefit base on a pro rata basis.
The timing of your withdrawals and whether they exceed the 5% threshold
described above can have significant impact on your guaranteed minimum income
benefit or guaranteed minimum death benefit.
Annual ratchet to age 80 -- If you elect the annual ratchet to age 80
guaranteed minimum death benefit, each withdrawal will reduce both your income
and death benefits on a pro rata basis.
Annuitant issue ages 80 through 85 -- If your contract was issued when the
annuitant was between ages 80 and 85, each withdrawal will always reduce your
current guaranteed minimum death benefit on a pro rata basis.
----------------------------------
Reduction on a dollar-for-dollar basis means that your current benefit will be
reduced by the dollar amount of the withdrawal. 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 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 guaranteed minimum death benefit
was $40,000 before the withdrawal, it would be reduced by $16,000 ($40,000 x
..40) and your new guaranteed minimum death benefit after the withdrawal would
be $24,000 ($40,000 - $16,000).
LOANS UNDER ROLLOVER TSA CONTRACTS
You may take loans from a Rollover TSA unless restricted by the employer who
provided the Rollover TSA funds. If you cannot take a loan, or cannot take a
loan without approval from the employer who provided the funds, we will have
this information in our records based on what you and the employer who provided
the funds told us when you purchased your contract. The employer must also tell
us whether special employer plan rules of the Employee Retirement Income
Security Act of 1974 ("ERISA") apply. We will not permit you to take a loan
while you are enrolled in our "automatic required minimum distribution (RMD)
service."
You should read the terms and conditions on our loan request form carefully
before taking out a loan. Under Rollover TSA contracts subject to ERISA, you
may only take a loan with the written consent of your spouse. Your contract
contains further details of the loan provision. Also, see "Tax information"
later in this Prospectus and in the SAI for general rules applicable to loans.
We will permit you to have only one loan outstanding at a time. The minimum
loan amount is $1,000. The maximum amount is $50,000 or, if less, 50% of your
account value, subject to any limits under the federal income tax rules. The
term of a loan is five years. However, if you use the loan to acquire your
primary residence, the term is 10 years. The term may not extend beyond the
earliest of:
(1) the date annuity payments begin,
(2) the date the contract terminates, and
(3) the date a death benefit is paid (the outstanding loan will be deducted
from the death benefit amount).
A loan request under your Rollover TSA contract will be processed on the first
business day of the month following the date on which the
32 Accessing your money
properly completed loan request form is received. Interest will accrue daily on
your outstanding loan at a rate we set. The loan interest rate will be equal to
the Moody's Corporate Bond Yield Averages for Baa bonds for the calendar month
ending two months before the first day of the calendar quarter in which the
rate is determined.
LOAN RESERVE ACCOUNT. On the date your loan is processed, we will transfer the
amount of your loan to the loan reserve account. Unless you specify otherwise,
we will subtract your loan 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 loan will be subtracted from
the fixed maturity options in order of the earliest maturity date(s) first. A
market value adjustment may apply.
We will credit interest to the amount in the loan reserve account at a rate of
2% lower than the loan interest rate that applies for the time your loan is
outstanding. On each contract date anniversary after the date the loan is
processed, we will transfer the amount of interest earned in the loan reserve
account to the variable investment options on a pro rata basis. When you make a
loan repayment, unless you specify otherwise, we will transfer the dollar
amount of the loan repaid from the loan reserve account to the investment
options according to the allocation percentages we have on our records.
SURRENDERING 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. (Rollover
TSA contracts may have restrictions.) 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.
For the tax consequences of surrenders, see "Tax information" later in this
Prospectus and in the SAI.
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, payment of a death benefit, payment of any amount you
withdraw and, upon surrender, 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 value 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 10 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
Equitable Accumulator(R) Select(SM) offers you several choices of annuity payout
options. Some enable you to receive fixed annuity payments, which can be either
level or increasing, 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. In addition, if you are exercising your guaranteed minimum
income benefit under baseBUILDER, your choice of payout options are those that
are available under baseBUILDER (see "Our baseBUILDER option" in "Contract
features and benefits" earlier in this Prospectus).
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Fixed annuity payout options Life annuity
Life annuity with period certain
Life annuity with refund certain
Period certain annuity
- --------------------------------------------------------------------------------
Variable Immediate Annuity Life annuity
payout options Life annuity with period certain
- --------------------------------------------------------------------------------
Income Manager payout options Life annuity with period certain
(available for annuitants age 83 Period certain annuity
or less at contract issue)
- --------------------------------------------------------------------------------
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. 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.
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 guaranteed period may
not exceed the annuitant's life expectancy. This
Accessing your money 33
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 OPTIONS
With fixed annuities, we guarantee fixed annuity payments will be based either
on the tables of guaranteed annuity purchase factors in your contract or on our
then current annuity purchase factors, 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 Immediate Annuities may be funded through your choice of available
variable investment options investing in portfolios of the EQ/Advisors Trust
and AXA Premier VIP Trust. The contract also offers a fixed income annuity
payout option that can be elected in combination with the variable annuity
payout option. The amount of each variable income 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.
INCOME MANAGER PAYOUT OPTIONS
The Income Manager payout annuity contracts differ from the other payout
annuity contracts. The other payout annuity contracts may provide higher or
lower income levels but do not have all the features of the Income Manager
payout annuity contract. You may request an illustration of the Income Manager
payout annuity contract from your financial professional. Income Manager payout
options are described in a separate prospectus that is available from your
financial professional. Before you select an Income Manager payout option, you
should read the prospectus which contains important information that you should
know.
Income Manager NQ and IRA payout options provide guaranteed level payments. The
Income Manager (life annuity with period certain) also provides guaranteed
increasing payments (NQ contracts only).
For QP and Rollover TSA contracts, if you want to elect an Income Manager
payout option, we will first roll over amounts in such contract to a Rollover
IRA contract with the plan participant as owner.
You may choose to apply the account value of your Equitable Accumulator(R)
Select(SM) contract to an Income Manager payout annuity.
Depending upon your circumstances, an Income Manager contract may be purchased
on a tax-free basis. Please consult your tax adviser. The Income Manager payout
options are not available in all states.
If you purchase an Income Manager contract in connection with the exercise of
the Living Benefit option, different payout options may apply as well as other
various differences. See "Our baseBUILDER option" in "Contract features and
benefits" earlier in this Prospectus, as well as the Income Manager prospectus.
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 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.
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. The contract owner and annuitant
must meet the issue age and payment requirements.
You can choose the date annuity payments begin but it may not be earlier than
thirteen months from the Equitable Accumulator(R) Select(SM) contract date.
Except with respect to the Income Manager annuity payout options, where
payments are made on the 15th day of each month, 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.
The amount of the annuity payments will depend on the amount applied to
purchase the annuity and the applicable annuity purchase factors, discussed
earlier.
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.
ANNUITY MATURITY DATE
Your contract has a maturity date by which you must either take a lump sum
withdrawal or select an annuity payout option. The maturity date is generally
the contract date anniversary that follows the annuitant's 90th birthday.
Before the last day 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: (i) transfers (if permitted in
the future) among the variable investment options if a Variable Immediate
Annuity payout option is selected; and (ii) withdrawals or contract surrender
if an Income Manager annuity payout option is 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 An administrative charge
o A distribution charge
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 A charge for baseBUILDER, if you elect this optional 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.
o A charge for Protection Plus, if you elect this optional benefit.
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" later in this Prospectus.
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.
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 guaranteed
minimum death benefit. The daily charge is equivalent to an annual rate of
1.10% 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 income 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. Lastly,
we assume a mortality risk to the extent that at the time of death, the
guaranteed minimum 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.
ADMINISTRATIVE CHARGE
We deduct a daily charge from the net assets in each variable investment option
to compensate us for administrative expenses under the contracts. The daily
charge is equivalent to an annual rate of 0.25% of the net assets in each
variable investment option.
DISTRIBUTION CHARGE
We deduct a daily charge from the net assets in each variable investment option
to compensate us for a portion of our sales expenses under the contracts. The
daily charge is equivalent to an annual rate of 0.25% of the net assets in each
variable investment option.
BASEBUILDER BENEFIT CHARGE
If you elect the baseBUILDER, we deduct a charge annually from your account
value on each contract date anniversary until such time as you exercise the
guaranteed minimum income benefit, elect another annuity payout option, or the
contract date anniversary after the annuitant reaches age 83, whichever occurs
first. The charge is equal to 0.30% of the benefit base in effect on the
contract date anniversary.
We will deduct this charge from your value in the variable investment options
on a pro rata basis. If there is not enough value in the variable investment
options, we will deduct all or a portion of the charge first, from the fixed
maturity options, in order of the earliest maturity date(s) first. A market
value adjustment may apply.
If your account value is insufficient to pay this charge, your contract will
terminate without value and you will lose any applicable guaranteed benefits.
Please see "Termination of your contract" in "Determining your contract value"
earlier in this Prospectus.
PROTECTION PLUS CHARGE
If you elect Protection Plus, we deduct a charge annually from your account
value on each contract date anniversary for which it is in effect. The charge
is equal to 0.20% of the account value on each contract date anniversary. We
will deduct this charge from your value in the variable investment option on a
pro rata basis. If there is not enough value in the variable investment
options, we will deduct all or a portion of the charge first, from the fixed
maturity options, in the order of the earliest maturity date(s) first. A market
value adjustment may apply.
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 jurisdiction and ranges from 0% to 3.5%.
VARIABLE IMMEDIATE ANNUITY PAYOUT OPTION ADMINISTRATIVE FEE
We deduct a fee of $350 from the amount to be applied to the Variable Immediate
Annuity payout option.
Charges and expenses 35
CHARGES THAT THE TRUSTS DEDUCT
The Trusts deduct charges for the following types of fees and expenses:
o Management fees ranging from 0.10% 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 prospectuses for the Trusts.
GROUP OR SPONSORED ARRANGEMENTS
For certain group or sponsored arrangements, we may reduce the mortality and
expense risks charge or change the minimum initial contribution requirements.
We also may change the guaranteed minimum income benefit and the guaranteed
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 Rollover IRA and Roth Conversion 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,
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.
OTHER DISTRIBUTION ARRANGEMENTS
We may reduce or eliminate charges when sales are made in a manner that result
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 would be
unfairly discriminatory.
36 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 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. You may be
limited as to the beneficiary you can designate in a Rollover TSA contract. In
a QP contract, the beneficiary must be the trustee. Where an NQ contract is
owned by a minor pursuant to the Uniform Gift to Minors Act or the Uniform
Transfers to Minors Act, the beneficiary must be the estate of the annuitant.
Where an IRA contract is owned in a custodial individual retirement account,
the custodian must be the beneficiary so that the custodian can reinvest or
distribute the death benefit as the beneficiary of the account desires.
The death benefit is equal to your account value (without adjustment for any
otherwise applicable negative market value adjustment) or, if greater, the
guaranteed minimum death benefit. The guaranteed minimum death benefit is part
of your contract, whether you select the baseBUILDER benefit or not. We
determine the amount of the death benefit (other than the guaranteed minimum
death benefit) and any amount applicable under the Protection Plus feature, 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. The amount of the guaranteed minimum death benefit
will be the guaranteed minimum death benefit as of the date of the annuitant's
death, adjusted for any subsequent withdrawals. Under Rollover TSA contracts we
will deduct the amount of any outstanding loan plus accrued interest from the
amount of the 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, a
surviving spouse of the deceased owner/annuitant can choose to be treated as
the successor owner/annuitant and continue the contract. Only a spouse who is
the sole primary beneficiary can be a successor owner/annuitant. The successor
owner/annuitant feature is only available under NQ and individually owned IRA
contracts.
For individually owned 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.
When the owner is not the annuitant under an NQ contract and the owner dies
before annuity payments begin, the beneficiary named to receive this death
benefit upon the annuitant's death will become the successor owner. If you do
not want this beneficiary 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. The surviving
owner automatically takes the place of any other beneficiary designation.
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 any annuity payout
option chosen may not extend beyond the life expectancy of the beneficiary.
SUCCESSOR OWNER AND ANNUITANT
If you are both the contract owner and the annuitant, and your spouse is the
sole primary beneficiary or the joint owner, then your spouse may elect to
receive the death benefit or continue the contract as successor
owner/annuitant.
If your surviving spouse decides to continue the contract, then as of the date
we receive satisfactory proof of your death, any required
Payment of death benefit 37
instructions, information and forms necessary to effect the successor
owner/annuitant feature, we will increase the account value to equal your
guaranteed minimum death benefit as of the date of your death if such death
benefit is greater than such account value, plus any amount applicable under
the Protection Plus feature and adjusted for any subsequent withdrawals. 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. In
determining whether the guaranteed minimum death benefit will continue to grow,
we will use your surviving spouse's age (as of the date we receive satisfactory
proof of your death, any required instructions and the information and forms
necessary to effect the successor owner/annuitant feature).
Where an IRA contract is owned in a custodial individual retirement account,
and your spouse is the sole beneficiary of the account, the custodian may
request that the spouse be substituted as annuitant after your death.
BENEFICIARY CONTINUATION OPTION
BENEFICIARY CONTINUATION OPTION FOR TRADITIONAL IRA AND ROTH IRA CONTRACTS
ONLY. This feature permits a designated individual, upon the contract owner's
death, to maintain the contract in the deceased contract owner's name and
receive distributions under the contract instead of receiving the death benefit
in a lump sum. The beneficiary continuation option must be elected by September
30th of the year following the calendar year of your death and before any other
inconsistent election is made. Beneficiaries who do not make a timely election
will not be eligible for this 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 applicable death
benefit if such death benefit is greater than such account value plus any
amount applicable under the Protection Plus feature, adjusted for any
subsequent withdrawals. Where an IRA contract is owned in a custodial
individual retirement account, the custodian may reinvest the death benefit in
an individual retirement annuity contract, using the account beneficiary as the
annuitant. Please speak with your financial professional for further
information.
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. For sole
spousal beneficiaries, payments may begin by December 31st of the calendar year
in which you would have reached age 70-1/2, if such time is later. For
traditional IRA contracts only, if you die before your Required Beginning Date
for Required Minimum Distributions, as discussed in the Statement of Additional
Information, the beneficiary may choose the "5-year rule" option instead of
annual payments over life expectancy. The 5-year rule is always available to
beneficiaries under Roth IRA contracts. If the beneficiary chooses this option,
the beneficiary may take withdrawals as desired, but the entire account value
must be fully withdrawn by December 31st of the calendar year which contains
the fifth anniversary of your death.
Under the beneficiary continuation option for IRA and Roth IRA contracts:
o The contract continues in your name for the benefit of your beneficiary.
o This feature is only available if the beneficiary is an individual. Certain
trusts with only individual beneficiaries will be treated as individuals
for this purpose.
o If there is more than one beneficiary, each beneficiary's share will be
separately accounted for. It will be distributed over the beneficiary's own
life expectancy, if payments over life expectancy are chosen.
o The minimum amount that is required in order to elect the beneficiary
continuation option is $5,000 for each beneficiary.
o The beneficiary may make transfers among the investment options but no
additional contributions will be permitted.
o If you had elected the guaranteed minimum income benefit or Protection Plus
feature under the contract, they will no longer be in effect and charges
for such benefits will stop. Also, any guaranteed minimum death benefit
feature will no longer be in effect.
o The beneficiary may choose at any time to withdraw all or a portion of the
account value.
o 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 required 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 Equitable Accumulator(R) Select(SM) contracts owned by
United States individual taxpayers. The tax rules can differ, depending on the
type of contract, whether NQ, traditional IRA, Roth IRA, QP or TSA. 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
without notice. 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 or values under the contract, or payments under the contract, for
example, the amounts due to beneficiaries, may be subject to federal or state
gift, estate, or inheritance 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 which can be made to all types of tax-favored retirement plans.
In addition to increasing amounts which 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 adviser 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") and Code Section 403(b)
Arrangements ("TSAs"), respectively: an IRA or 403(b) annuity contract such as
this one, or an IRA or 403(b)(7) custodial or other qualified account. Annuity
contracts can also be purchased in connection with retirement 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. More information on IRAs and TSAs is provided
in the SAI. 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 Accumulator(R) Select(SM)'s 12 Month Dollar Cost Averaging,
choice of death benefits, baseBUILDER guaranteed minimum income benefit,
selection of investment funds and fixed maturity options and its 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 arrangements.
You should be aware that cost may vary depending on the features and benefits
made available and the charges and expenses of the investment options or funds
that you elect. Although certain provisions of the Temporary Regulations on
required minimum distributions concerning the actuarial value of additional
contract benefits which could have increased the amount required to be
distributed from annuity contracts funding qualified plans, TSAs and IRAs have
currently been suspended, these or similar provisions may apply in future
years. You may want to discuss with your tax adviser the potential implication
of these Regulations before you purchase this annuity contract or purchase
additional features under this annuity contract. See also Appendix II at the
end of this Prospectus for a discussion of QP contracts.
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 the 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).
Tax information 39
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 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.
PROTECTION PLUS FEATURE
In order to enhance the amount of the death benefit to be paid at the
annuitant's death, you may purchase a Protection Plus rider for your NQ
contract. Although we regard this benefit as an investment protection feature
which is part of the contract and which should have no adverse tax effect, it
is possible that the IRS could take a contrary position or assert that the
Protection Plus rider is not part of the contract. In such a case the charges
for the Protection Plus rider could be treated for federal income tax purposes
as a partial withdrawal from the contract. If this were so, such a deemed
withdrawal could be taxable and, for contract owners under age 59-1/2, also
subject to a tax penalty. Were the IRS to take this position, Equitable would
take all reasonable steps to attempt to avoid this result, which would include
amending the contract (with appropriate notice to you).
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
Equitable Accumulator(R) Select(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 the contract, of the
source contract carries over to the Equitable Accumulator(R) Select(SM) NQ
contract.
An owner may 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 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, in accordance with IRS formulas.
INVESTOR CONTROL ISSUES
Under certain circumstances, the IRS has stated that you could be treated as
the owner (for tax purposes) of the assets of Separate Accounts 45 and 49. If
you were treated as the owner, you would be taxable on income and gains
attributable to the shares of the underlying portfolios.
The circumstances that would lead to this tax treatment would be that, in the
opinion of the IRS, you could control the underlying investment of Separate
Accounts 45 and 49. Recently, the IRS has said that the owners of variable
annuities will not be treated as owning the separate account assets provided
the underlying portfolios are restricted to variable life and annuity assets.
The variable annuity owners must have the right only to choose among the
portfolios, and must have no right to direct the particular investment
decisions within the portfolios.
40 Tax information
Although we believe that, under current IRS guidance, you would not be treated
as the owner of the assets of Separate Accounts 45 and 49, there are some
issues that remain unclear. For example, the IRS has not issued any guidance as
to whether having a larger number of portfolios available, or an unlimited
right to transfer among them, could cause you to be treated as the owner. We do
not know whether the IRS will ever provide such guidance or whether such
guidance, if unfavorable, would apply retroactively to your contract.
Furthermore, the IRS could reverse its current guidance at any time. We reserve
the right to modify your contract as necessary to prevent you from being
treated as the owner of the assets of Separate Accounts 45 and 49.
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 trustee or custodian holds
the assets for the benefit of the IRA owner. The assets funding the account
typically include mutual funds and/or individual stocks and/or 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; and
o Roth IRAs, 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 (http:// www.irs.gov).
Equitable Life designs its IRA contracts to qualify as individual retirement
annuities under Section 408(b) of the Internal Revenue Code. You may purchase
the contract as a traditional IRA ("Rollover IRA") or Roth IRA ("Roth
Conversion IRA"). The SAI contains the information that the IRS requires you to
have before you purchase an IRA. The disclosure generally assumes direct
ownership of the individual retirement annuity contract. For contracts owned in
a custodial individual retirement account, the disclosure will apply only if
you terminate your account or transfer ownership of the contract to yourself.
We have received an opinion letter from the IRS approving the respective forms
of the Equitable Accumulator(R) traditional and Roth IRA contracts, as amended
to reflect recent tax law changes, for use as a traditional IRA and a Roth IRA,
respectively. We do not know if and when any such IRS formal approval will be
received. 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 contracts submitted for IRS approval do not include every
feature possibly available under the Equitable Accumulator(R) traditional and
Roth IRA contracts.
PROTECTION PLUS(SM) FEATURE
The Protection Plus feature is offered for IRA contracts, subject to state and
contract availability. We have received IRS opinion letters that the contract
with a Protection Plus feature qualifies 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 contracts submitted for IRS approval do not
include every feature possibly available under the Equitable Accumulator(R)
traditional and Roth IRA contracts. You should discuss with your tax adviser
whether you should consider purchasing an Accumulator(R) IRA or Accumulator(R)
Roth IRA with the optional Protection Plus feature.
CONTRIBUTIONS
Individuals may make three different types of contributions to an 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 IRAs of the same type
("direct transfers").
In addition, an individual may make a taxable rollover contribution from a
traditional IRA to a Roth IRA ("conversion" contributions).
Contributions to all types of IRAs are compensation-based. They are either made
from your current compensation or have a connection with past compensation (for
example, rollover contributions from an eligible retirement plan that you had
with an employer relate to past compensation). Under certain circumstances,
your nonworking spouse, former spouse or surviving spouse may contribute to an
IRA. You can make regular contributions for any year to a traditional IRA
within federal tax law limits up until the calendar year you reach the age
Tax information 41
70-1/2. Regular contributions for any year to a Roth IRA can be made at any time
during your life, subject to federal tax law limits.
The amount of contributions you may make to an IRA for any year and whether
such contributions are eligible for special tax treatment (for example,
deductibility from income or a special credit) may vary, depending on your
income, age and whether you participate in an employer-sponsored retirement
plan. Roth IRA contributions are not tax deductible. The maximum regular
contribution that can be made to all of your IRAs (whether traditional or Roth)
for the taxable year for which the contribution is made is $3,000 for 2004 and
$4,000 for 2005. The maximum regular contribution for both is increased to
$3,500 for 2004 and $4,500 for 2005, if you are at least age 50 at any time
during the taxable year for which the contribution is made.
Rollover and transfer contributions are not subject to dollar limits. Rollover
contributions may be made to a traditional IRA from "eligible retirement plans"
which include other traditional IRAs, qualified plans, TSAs and governmental
employer 457(b) plans. For Roth IRAs, rollover contributions may be made from
other Roth IRAs and traditional IRAs. The conversion of a traditional IRA to a
Roth IRA is taxable. Direct transfer contributions may only be made directly
from one traditional IRA to another or from one Roth IRA to another.
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 adviser 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.
A more complete discussion of contributions to traditional IRAs and Roth IRAs
is contained in the SAI.
WITHDRAWALS AND DISTRIBUTIONS
You can withdraw any or all of your funds from an IRA at any time; you do not
need to wait for a special event like retirement. Earnings in IRAs are not
subject to federal income tax until amounts are paid to you or your
beneficiary. Withdrawals from an IRA , surrender of an IRA, death benefits from
an IRA and annuity payments from an IRA may be fully or partially taxable.
Withdrawals and distributions from IRAs are taxable as ordinary income (not
capital gain).
Payments from traditional IRAs and Roth IRAs are taxed differently. Payments
from traditional IRAs are generally fully taxable unless you have made
nondeductible regular contributions or rolled over after-tax contributions. In
any event, the issuer of the traditional IRA is entitled to report the
distribution as fully taxable and it is your responsibility to calculate the
taxable and tax-free portions of any traditional IRA payments on your own tax
returns.
Distributions from Roth IRAs generally receive return of contribution treatment
first under federal income tax calculation rules before any income is taxable.
Certain distributions from Roth IRAs may qualify for fully tax-free treatment.
These are distributions after you reach age 59-1/2, die, become disabled or meet
a qualified first-time homebuyer tax rule. You also have to meet a five-year
aging period.
A distribution from a traditional IRA will not be taxable if it is rolled over
to an eligible retirement plan. A distribution from a Roth IRA will not be
taxable if it is rolled over to another Roth IRA.
Taxable withdrawals or distributions from IRAs may be subject to an additional
10% penalty tax if you are under age 59-1/2, unless an exception applies.
Traditional IRAs are subject to required minimum distribution rules which
require that amounts begin to be distributed in a prescribed manner from the
IRA after the owner reaches age 70-1/2. These rules also require distributions
after the owner's death. No distributions are required to be made from Roth
IRAs until after the Roth IRA owner's death, but then the required minimum
distribution rules apply.
A more complete discussion of the tax aspects of withdrawals and distributions
from traditional IRAs and Roth IRAs is contained in the SAI.
SPECIAL RULES FOR CONTRACTS FUNDING QUALIFIED PLANS
For QP contracts, your plan administrator or trustee notifies you as to tax
consequences. See Appendix II at the end of this Prospectus.
TAX-SHELTERED ANNUITY CONTRACTS (TSAS)
GENERAL
This section of the prospectus covers some of the special tax rules that apply
to annuity contracts under Section 403(b) of the Internal Revenue Code (TSAs).
Generally there are two types of funding vehicles available for 403(b)
arrangements -- an annuity contract under Section 403(b)(1) of the Code or a
custodial account which invests only in mutual funds and which is treated as an
annuity contract under Section 403(b)(7) of which the Code. Both types of
403(b) arrangements qualify for tax deferral.
CONTRIBUTIONS TO TSAS
There are two ways you can make contributions to this Equitable Accumulator
Select Rollover TSA contract:
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.
If you make a direct transfer, you must fill out our transfer form.
ROLLOVER OR DIRECT TRANSFER CONTRIBUTIONS. You must establish your TSA with
funds that are directly transferred from another 403(b) arrangement or rolled
over from another 403(b) arrangement. You may make subsequent rollover
contributions to your Rollover TSA contract from these sources: qualified
plans, governmental employer 457(b) plans and traditional IRAs, as well as
other TSAs and 403(b)
42 Tax information
arrangements. All rollover contributions must be pre-tax funds only with
appropriate documentation satisfactory to us.
You should discuss with your tax adviser 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.
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 Equitable Accumulator(R) Select(SM) contract receiving the funds has
provisions at least as restrictive as the source contract.
Before you transfer funds to an Equitable Accumulator(R) Select(SM) Rollover TSA
contract, you may have to obtain your employer's authorization or demonstrate
that you do not need employer authorization.
Contributions to TSAs are discussed in greater detail in the SAI.
DISTRIBUTIONS FROM 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. Your employer will tell us this when you establish the TSA through
a direct transfer.
You may also need spousal consent for certain transactions and payments.
WITHDRAWAL RESTRICTIONS. If this is a Revenue Ruling 90-24 direct transfer, we
will treat all amounts transferred to this contract and any future earnings on
the amount transferred as not eligible for withdrawal until one of the
following events happens:
o you are severed from employment with the employer which provided the funds
to purchase the TSA you are transferring to the Equitable Accumulator(R)
Select(SM) Rollover TSA; or
o you reach age 59-1/2; or
o you die; or
o you become disabled (special federal income tax definition); or
o you take a hardship withdrawal (special federal income tax definition).
The amount of funds subject to the withdrawal restrictions may depend on the
source of the funds used to establish the Accumulator(R) Select(SM) TSA.
TAX TREATMENT OF DISTRIBUTIONS. Amounts held under TSAs are generally not
subject to federal income tax until benefits are distributed. Distributions
include withdrawals from your TSA contract and annuity payments from your TSA
contract. Death benefits paid to a beneficiary are also taxable distributions.
Unless an exception applies, amounts distributed from TSAs are includable in
gross income as ordinary income. Distributions from TSAs may be subject to 20%
federal income tax withholding. See "Federal and state income tax withholding
and information reporting" below. In addition, TSA distributions may be subject
to additional tax penalties.
If you have made after-tax contributions, you will have a tax basis in your TSA
contract, which will be recovered tax-free. Since we currently do not accept
after-tax funds, we do not track your investment in the contract, if any. We
will report all distributions from this Rollover IRA as fully taxable. It is
your responsibility to determine how much of the distribution is taxable.
A penalty tax of 10% of the taxable portion of a distribution applies to
distributions from a TSA before you reach age 59-1/2 unless an exception
applies.
Distributions from TSAs are discussed in greater detail in the SAI.
LOANS FROM TSAS
Loans are generally not treated as a taxable distribution. You may take loans
from a TSA unless restricted by the employer (for example, under an employer
plan subject to ERISA). If you cannot take a loan, or cannot take a loan
without approval from the employer who provided the funds, we will have this
information in our records based on what you and the employer who provided the
TSA funds told us when you purchased your contract.
Loans from TSAs are discussed in greater detail in the SAI.
TAX-DEFERRED ROLLOVERS AND DIRECT TRANSFERS
You may roll over an "eligible rollover distribution" from a TSA into another
eligible retirement plan (a qualified plan, a governmental employer 457(b) plan
(separate accounting required), another TSA or a traditional IRA) which agrees
to accept the rollover.
A spousal beneficiary may also roll over death benefits or certain
divorce-related payments.
Direct transfers of TSA funds from one TSA to another under Revenue Ruling
90-24 are not distributions.
Rollovers from TSAs are discussed in greater detail in the SAI.
REQUIRED MINIMUM DISTRIBUTIONS
TSAs are subject to required minimum distribution rules beginning at age 70-1/2
or separation of service, if later. These rules are discussed in greater detail
in the SAI.
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.
Tax information 43
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 $17,280 in periodic annuity payments in
2004, 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), 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.
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 AND QUALIFIED PLAN DISTRIBUTIONS
Unless you have the distribution go directly to the new plan, eligible rollover
distributions from qualified plans and TSAs are subject to mandatory 20%
withholding. The plan administrator is responsible for withholding from
qualified plan distributions. An eligible rollover distribution from a TSA or a
qualified plan can be rolled over to another eligible retirement plan. All
distributions from a TSA 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 from service with the employer; 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
o substantially equal periodic payments made for a specified period of 10
years or more; or
o hardship withdrawals; 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.
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 No. 45 and Separate
Account No. 49 for taxes. We do not now, but may in the future set up reserves
for such taxes.
44 Tax information
8. More information
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ABOUT SEPARATE ACCOUNT NO. 45 AND SEPARATE ACCOUNT NO. 49
Each variable investment option is a subaccount of Separate Account No. 45 and
Separate Account No. 49. We established Separate Account No. 45 in 1994 and
Separate Account No. 49 in 1996 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 No. 45 and in Separate Account No. 49 and may
withdraw any amounts that exceed our reserves and other liabilities with
respect to variable investment options under our contracts. The results of the
Separate Accounts' operations are accounted for without regard to Equitable
Life's other operations.
Each Separate Account 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 the Separate Accounts.
Each subaccount (variable investment option) within the Separate Accounts
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 either Separate Account, 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 each Separate Account 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 each Separate Account
or a variable investment option directly);
(5) to deregister the Separate Accounts under the Investment Company Act of
1940;
(6) to restrict or eliminate any voting rights as to the Separate Accounts ;
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.
The Trusts do not impose sales charges or "loads" for buying and selling its
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 and other aspects
of its operations, appears in the prospectuses for each Trust, or in the
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.
FMO rates are determined daily. The rates in the table are illustrative only
and will most likely differ from the rates applicable at time of purchase.
Current FMO rates can be obtained from your financial professional.
The rates to maturity for new allocations as of February 13, 2004 and the
related price per $100 of maturity value were as shown below:
- -------------------------------------------------------------
Fixed Maturity
Options with
February 15th Rate to Price
Maturity Date of Maturity as of Per $100 of
Maturity Year February 13, 2004 Maturity Value
- -------------------------------------------------------------
2005 3.00% * $ 97.06
2006 3.00% * $ 94.24
2007 3.00% * $ 91.49
2008 3.00% * $ 88.83
2009 3.00% * $ 86.23
2010 3.07% $ 83.38
2011 3.43% $ 78.94
2012 3.72% $ 74.63
2013 3.95% $ 70.53
2014 4.15% $ 66.55
- -------------------------------------------------------------
* Since these rates to maturity are 3%, no amounts could have been allocated
to these options.
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.
More information 45
(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. 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 0.25% 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 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
WIRE TRANSMITTALS AND ELECTRONIC APPLICATIONS
We accept initial and subsequent contributions sent by wire to our processing
office by agreement with certain broker-dealers. Such transmittals must be
accompanied by information we require to allocate your contribution. Wire
orders not accompanied by complete information may be retained as described
under "How you can make your contributions" in "Contract features and benefits"
earlier in this Prospectus.
Even if we accept the wire order and essential information, a contract
generally will not be issued until we receive and accept a properly
46 More information
completed application. In certain cases we may issue a contract based on
information provided through certain broker-dealers with which we have
established electronic facilities. In any such cases, you must sign our
Acknowledgement of Receipt form.
Where we require a signed application, the above procedures do not apply and no
financial transactions will be permitted until we receive the signed
application and have issued the contract. Where we issue a contract based on
information provided through electronic facilities, we require an
Acknowledgement of Receipt form, and financial transactions are only permitted
if you request them in writing, sign the request and have it signature
guaranteed, until we receive the signed Acknowledgement of Receipt form. After
your contract has been issued, additional contributions may be transmitted by
wire.
In general, the transaction date for electronic transmissions is the date on
which we receive at our regular processing office all required information and
the funds due for your contribution. We may also establish same-day electronic
processing facilities with a broker-dealer that has undertaken to pay
contribution amounts on behalf of its customers. In such cases, the transaction
date for properly processed orders is the business day on which the
broker-dealer inputs all required information into its electronic processing
system. You can contact us to find our more about such arrangements.
After your contract has been issued, additional contributions may be
transmitted by wire.
AUTOMATIC INVESTMENT PROGRAM -- FOR NQ CONTRACTS ONLY
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 contract on a monthly or quarterly basis. AIP is not available for
Rollover IRA, Roth Conversion IRA, QP or Rollover TSA contracts.
The minimum amounts we will deduct are $100 monthly and $300 quarterly. AIP
additional contributions may be allocated to any of the variable investment
options and available fixed maturity options. 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.
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. on a business day, we will use the next business day.
o A loan request under your Rollover TSA contract will be processed on the
first business day of the month following the date on which the properly
completed loan request form is received.
o If your transaction is set to occur on the same day of the month as the
contract date and that date is the 29th, 30th or 31st of the month, then
the transaction will occur on the 1st day of the next month.
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 If we have entered into an agreement with your broker-dealer for automated
processing of contributions upon receipt of customer order, your
contribution will be considered received at the time your broker-dealer
receives your contribution and all information needed to process your
application, along with any required documents, and transmits your order to
us in accordance with our processing procedures. Such arrangements may
apply to initial contributions, subsequent contributions, or both, and may
be commenced or terminated at any time without prior notice. If required by
law, the "closing time" for such orders will be earlier than 4 p.m.,
Eastern Time.
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 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 a fixed maturity option will be based on the rate to maturity
in effect for that fixed maturity option on the business day of the
transfer.
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
More information 47
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 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 NO. 45 AND SEPARATE ACCOUNT NO. 49 VOTING RIGHTS
If actions relating to the Separate Accounts 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 No. 45 and Separate Account No. 49, our ability to meet
our obligations under the contracts or the distribution of the contracts.
ABOUT OUR INDEPENDENT AUDITORS
The consolidated financial statements of Equitable Life at December 31, 2003
and 2002, and for the three years ended December 31, 2003, incorporated in this
Prospectus by reference to the 2003 Annual Report on Form 10-K are incorporated
in reliance on the report of PricewaterhouseCoopers LLP, independent auditors,
given on the authority of said firm as experts in auditing and accounting.
FINANCIAL STATEMENTS
The financial statements of Separate Account No. 45 and Separate Account No.
49, as well as the consolidated financial statements of Equitable Life, are in
the applicable SAI. The SAI is available free of charge. You may request one by
writing to our processing office or calling 1-800-789-7771.
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 Rollover IRA, Roth Conversion IRA,
QP or Rollover TSA contract except by surrender to us. If your individual
retirement annuity contract is held in your custodial individual retirement
account, you may only assign or transfer ownership of such an IRA contract to
yourself. Loans are not available and you cannot assign Rollover IRA, Roth
Conversion IRA, QP or Rollover TSA contracts as security for a loan or other
obligation. If the employer that provided the funds does not restrict them,
loans are available under a Rollover TSA contract.
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 Rollover IRA, Roth
Conversion IRA, QP or Rollover TSA contract to another similar arrangement
under federal income tax rules .
DISTRIBUTION OF THE CONTRACTS
The contracts are distributed by both AXA Advisors, LLC and AXA Distributors,
LLC. For this purpose, AXA Advisors, LLC serves as the principal underwriter of
Separate Account No. 45, and AXA Distributors, LLC serves as the principal
underwriter of Separate Account No. 49. The offering of the contracts is
intended to be continuous.
DISTRIBUTION OF THE CONTRACTS BY AXA ADVISORS, LLC
AXA Advisors, LLC ("AXA Advisors"), the successor to EQ Financial Consultants,
Inc. and an affiliate of Equitable Life, has responsibility for sales and
marketing functions for the contracts funded through Separate Account No. 45.
AXA Advisors also acts as distributor for other Equitable Life annuity products
with different features, expenses and fees. AXA Advisors is registered with the
SEC as a broker-dealer and is
48 More information
a member of the National Association of Securities Dealers, Inc. AXA Advisors'
principal business address is 1290 Avenue of the Americas, New York, New York
10104.
These contracts will be sold by financial professionals who are financial
professionals of AXA Advisors and its affiliates, who are also our licensed
insurance agents.
DISTRIBUTION OF THE CONTRACTS BY AXA DISTRIBUTORS, LLC
AXA Distributors, LLC ("AXA Distributors"), an indirect, wholly owned
subsidiary of Equitable Life, has responsibility for sales and marketing
functions for the contracts funded through Separate Account No. 49. AXA
Distributors also acts as distributor for other Equitable Life annuity products
with different features, expenses, and fees. AXA Distributors is registered
with the SEC as a broker-dealer and is a member of the National Association of
Securities Dealers, Inc. AXA Distributors' principal business address is 1290
Avenue of the Americas, New York, New York 10104.
AXA Distributors is the successor by merger to all of the functions, rights and
obligations of Equitable Distributors, Inc. Like AXA Distributors, Equitable
Distributors, Inc. was owned by Equitable Holdings, LLC.
These contracts are sold by financial professionals of AXA Distributors, as
well as by affiliated and unaffiliated broker-dealers who have entered into
selling agreements with AXA Distributors.
We pay broker-dealer sales compensation that will generally not exceed 7.0% of
the total contributions made under the contracts. Broker-dealers receiving
sales compensation will generally pay a portion of it to their financial
representatives as commissions related to the sales of the contracts. AXA
Distributors may also receive compensation and reimbursement for its marketing
services under the terms of its distribution agreement with Equitable Life, as
well as payments from portfolio advisers for sales meetings and/or seminar
sponsorships.
Equitable and/or AXA Distributors and/or AXA Advisors may use their respective
past profits or other resources to pay brokers and other financial
intermediaries for certain expenses they incur in providing services intended
to promote the sales of our products and/or shares in the underlying Trusts.
These services may include sales personnel training, prospectus review,
marketing and related services as well as support services that benefit
contract owners.
Similarly, in an effort to promote the sale of our products, AXA Advisors may
provide its financial professionals and managerial personnel with a higher
percentage of sales commissions and/or more compensation for the sale of an
Equitable variable product than it would for the sale of another product. Such
practice is known as providing differential compensation. Other forms of
compensation financial professionals may receive include health and retirement
benefits, credits towards stock options awards and rewards for sales incentive
campaigns. In addition, managerial personnel may receive expense
reimbursements, marketing allowances and so called "overrides." In part for tax
reasons, AXA Advisors financial professionals and managerial personnel qualify
for health and retirement benefits based on their sales of our variable
products.
These payments and differential compensation (together, "payments") can vary in
amount based on the applicable product and/or entity or individual involved. As
with any incentive, such payments may cause the recipient to show preference in
recommending the purchase or sale of our products. However, under applicable
rules of the National Association of Securities Dealers, Inc., AXA Advisors
financial professionals may only recommend to you products that they reasonably
believe are suitable for you based on facts that you have disclosed as to your
other security holdings, financial situation and needs. In making any
recommendation, financial professionals may nonetheless face conflicts of
interest because of the differences in compensation from one product category
to another, and because of differences in compensation between products in the
same category. Although Equitable takes all of its costs into account in
establishing the level of fees and expenses in our products, payments made will
not result in any separate charge to you under your contract.
More information 49
9. Incorporation of certain documents by reference
- --------------------------------------------------------------------------------
Equitable Life's Annual Report on Form 10-K for the year ended December 31,
2003, 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).
50 Incorporation of certain documents by reference
Appendix I: Condensed financial information
- --------------------------------------------------------------------------------
The unit values and number of units outstanding shown below are for contracts
offered under Separate Accounts No. 45 and No. 49 with the same daily asset
charges of 1.60%.
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, 2003.
- ------------------------------------------------------------------------------------------------------------------------------------
Years Ended December 31,
-------------------------------------------------------------------------
2003 2002 2001 2000 1999 1998 1997
- ------------------------------------------------------------------------------------------------------------------------------------
AXA Moderate Allocation
- ------------------------------------------------------------------------------------------------------------------------------------
Unit value $ 39.41 $ 33.62 $ 39.15 -- -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Separate Account 45 number of units outstanding (000's) 1,489 1,564 1,005 -- -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) 2,733 598 97 -- -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
AXA Premier VIP Aggressive Equity
- ------------------------------------------------------------------------------------------------------------------------------------
Unit value $ 46.56 $ 34.41 $ 49.16 $ 66.77 $ 78.30 $ 67.13 $ 68.19
- ------------------------------------------------------------------------------------------------------------------------------------
Separate Account 45 number of units outstanding (000's) 79 66 73 65 16 -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) 429 338 402 420 141 16 --
- ------------------------------------------------------------------------------------------------------------------------------------
AXA Premier VIP Core Bond
- ------------------------------------------------------------------------------------------------------------------------------------
Unit value $ 10.87 $ 10.64 -- -- -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Separate Account 45 number of units outstanding (000's) 1,240 1,234 -- -- -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) 8,217 3,282 -- -- -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
AXA Premier VIP Health Care
- ------------------------------------------------------------------------------------------------------------------------------------
Unit value $ 9.93 $ 7.88 -- -- -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Separate Account 45 number of units outstanding (000's) 265 189 -- -- -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) 1,758 398 -- -- -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
AXA Premier VIP High Yield
- ------------------------------------------------------------------------------------------------------------------------------------
Unit value $ 26.32 $ 21.83 $ 22.86 $ 23.07 $ 25.73 $ 27.12 $ 29.13
- ------------------------------------------------------------------------------------------------------------------------------------
Separate Account 45 number of units outstanding (000's) 634 511 500 219 35 -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) 5,467 2,248 1,835 1,211 574 170 2
- ------------------------------------------------------------------------------------------------------------------------------------
AXA Premier VIP International Equity
- ------------------------------------------------------------------------------------------------------------------------------------
Unit value $ 10.29 $ 7.79 -- -- -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Separate Account 45 number of units outstanding (000's) 371 286 -- -- -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) 1,684 553 -- -- -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
AXA Premier VIP Large Cap Core Equity
- ------------------------------------------------------------------------------------------------------------------------------------
Unit value $ 9.61 $ 7.62 -- -- -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Separate Account 45 number of units outstanding (000's) 249 213 -- -- -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) 1,850 635 -- -- -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
AXA Premier VIP Large Cap Growth
- ------------------------------------------------------------------------------------------------------------------------------------
Unit value $ 8.70 $ 6.77 -- -- -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Separate Account 45 number of units outstanding (000's) 385 283 -- -- -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) 4,258 1,299 -- -- -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
AXA Premier VIP Large Cap Value
- ------------------------------------------------------------------------------------------------------------------------------------
Unit value $ 10.17 $ 7.89 -- -- -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Separate Account 45 number of units outstanding (000's) 297 292 -- -- -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) 3,848 1,272 -- -- -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
AXA Premier VIP Small/Mid Cap Growth
- ------------------------------------------------------------------------------------------------------------------------------------
Unit value $ 8.53 $ 6.18 -- -- -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Separate Account 45 number of units outstanding (000's) 538 344 -- -- -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) 5,628 1,488 -- -- -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Appendix I: Condensed financial information A-1
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, 2003.
- ------------------------------------------------------------------------------------------------------------------------------------
Years Ended December 31,
-------------------------------------------------------------------------
2003 2002 2001 2000 1999 1998 1997
- ------------------------------------------------------------------------------------------------------------------------------------
AXA Premier VIP Small/Mid Cap Value
- ------------------------------------------------------------------------------------------------------------------------------------
Unit value $ 10.17 $ 7.35 -- -- -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Separate Account 45 number of units outstanding (000's) 467 381 -- -- -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) 3,927 1,262 -- -- -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
AXA Premier VIP Technology
- ------------------------------------------------------------------------------------------------------------------------------------
Unit value $ 8.76 $ 5.65 -- -- -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Separate Account 45 number of units outstanding (000's) 281 96 -- -- -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) 1,117 205 -- -- -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/Alliance Common Stock
- ------------------------------------------------------------------------------------------------------------------------------------
Unit value $ 196.75 $ 133.70 $ 203.81 $ 232.08 $ 275.01 $ 223.79 $ 176.22
- ------------------------------------------------------------------------------------------------------------------------------------
Separate Account 45 number of units outstanding (000's) 301 314 380 310 66 -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) 689 581 661 618 255 35 1
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/Alliance Growth and Income
- ------------------------------------------------------------------------------------------------------------------------------------
Unit value $ 24.85 $ 19.37 $ 25.00 $ 25.80 $ 24.13 -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Separate Account 45 number of units outstanding (000's) 2,534 2,830 3,407 1,662 342 -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) 3,013 1,002 -- -- -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/Alliance Intermediate Government Securities
- ------------------------------------------------------------------------------------------------------------------------------------
Unit value $ 17.95 $ 17.86 $ 16.72 $ 15.75 $ 14.70 -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Separate Account 45 number of units outstanding (000's) 2,818 3,868 2,545 486 59 -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) 3,448 2,501 -- -- -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/Alliance International
- ------------------------------------------------------------------------------------------------------------------------------------
Unit value $ 11.15 $ 8.38 $ 9.48 $ 12.56 $ 16.61 -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Separate Account 45 number of units outstanding (000's) 1,928 1,910 404 302 38 -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) 4,026 604 -- -- -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/Alliance Premier Growth
- ------------------------------------------------------------------------------------------------------------------------------------
Unit value $ 5.81 $ 4.79 $ 7.07 $ 9.45 $ 11.77 -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Separate Account 45 number of units outstanding (000's) 3,962 4,522 5,608 4,909 1,112 -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) 17,115 16,550 18,765 17,412 5,630 -- --
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/Alliance Quality Bond
- ------------------------------------------------------------------------------------------------------------------------------------
Unit value $ 15.13 $ 14.85 -- -- -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Separate Account 45 number of units outstanding (000's) 282 347 -- -- -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) 3122 1,064 -- -- -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/Alliance Small Cap Growth
- ------------------------------------------------------------------------------------------------------------------------------------
Unit value $ 13.43 $ 9.69 $ 14.11 $ 16.53 $ 14.78 $ 11.77 $ 12.52
- ------------------------------------------------------------------------------------------------------------------------------------
Separate Account 45 number of units outstanding (000's) 1,362 1,384 1,276 718 30 -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) 4,534 3,377 3,423 3,189 818 211 --
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/Bernstein Diversified Value
- ------------------------------------------------------------------------------------------------------------------------------------
Unit value $ 12.68 $ 10.01 $ 11.78 $ 11.61 $ 12.04 $ 11.81 --
- ------------------------------------------------------------------------------------------------------------------------------------
Separate Account 45 number of units outstanding (000's) 1,839 1,712 1,138 -- -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) 15,959 8,615 6,000 3,700 1,532 315 --
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/Calvert Socially Responsible
- ------------------------------------------------------------------------------------------------------------------------------------
Unit value $ 7.86 $ 6.24 $ 8.62 -- -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Separate Account 45 number of units outstanding (000's) 25 38 6 -- -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) 478 128 13 -- -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/Capital Guardian International
- ------------------------------------------------------------------------------------------------------------------------------------
Unit value $ 9.42 $ 7.22 $ 8.64 $ 11.09 $ 13.93 -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Separate Account 45 number of units outstanding (000's) 146 59 -- -- -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) 10,611 5,973 5,697 5,514 1,286 -- --
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/Capital Guardian Research
- ------------------------------------------------------------------------------------------------------------------------------------
Unit value $ 10.21 $ 7.89 $ 10.65 $ 11.04 $ 10.60 -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Separate Account 45 number of units outstanding (000's) 896 961 166 112 13 -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) 12,682 9,408 3,151 2,953 987 -- --
- ------------------------------------------------------------------------------------------------------------------------------------
A-2 Appendix I: Condensed financial information
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, 2003.
- ------------------------------------------------------------------------------------------------------------------------------------
Years Ended December 31,
-------------------------------------------------------------------------
2003 2002 2001 2000 1999 1998 1997
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/Capital Guardian U. S. Equity
- ------------------------------------------------------------------------------------------------------------------------------------
Unit value $ 10.17 $ 7.57 $ 10.09 $ 10.46 $ 10.26 -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Separate Account 45 number of units outstanding (000's) 770 643 337 155 31 -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) 14,963 8,308 6,886 5,538 2,436 -- --
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/Emerging Markets Equity
- ------------------------------------------------------------------------------------------------------------------------------------
Unit value $ 8.58 $ 5.59 $ 6.04 $ 6.47 $ 10.97 $ 5.70 --
- ------------------------------------------------------------------------------------------------------------------------------------
Separate Account 45 number of units outstanding (000's) 837 857 821 715 126 -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) 4,232 2,823 3,043 2,958 962 203 --
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/Equity 500 Index
- ------------------------------------------------------------------------------------------------------------------------------------
Unit value $ 22.99 $ 18.28 $ 23.93 $ 27.69 -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Separate Account 45 number of units outstanding (000's) 1,030 1,042 1,038 734 -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) 11,512 7,152 6,601 6,057 -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/Evergreen Omega
- ------------------------------------------------------------------------------------------------------------------------------------
Unit value $ 7.79 $ 5.73 $ 7.66 $ 9.38 $ 10.80 -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Separate Account 45 number of units outstanding (000's) 184 143 90 17 8 -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) 2,016 424 141 78 6 -- --
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/FI Mid Cap
- ------------------------------------------------------------------------------------------------------------------------------------
Unit value $ 9.65 $ 6.83 $ 8.51 $ 9.99 -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Separate Account 45 number of units outstanding (000's) 1,665 1,471 932 126 -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) 10,509 4,322 2,644 617 -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/FI Small/Mid Cap Value
- ------------------------------------------------------------------------------------------------------------------------------------
Unit value $ 12.18 $ 9.29 $ 11.07 $ 10.82 $ 10.45 -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Separate Account 45 number of units outstanding (000's) 2,005 2,145 1,487 87 18 -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) 7,229 3,714 2,090 251 -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/J.P. Morgan Core Bond
- ------------------------------------------------------------------------------------------------------------------------------------
Unit value $ 13.28 $ 13.05 $ 12.10 $ 11.40 $ 10.39 $ 10.73 --
- ------------------------------------------------------------------------------------------------------------------------------------
Separate Account 45 number of units outstanding (000's) 804 702 -- -- -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) 16,175 13,419 10,537 5,112 2,026 379 --
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/Janus Large Cap Growth
- ------------------------------------------------------------------------------------------------------------------------------------
Unit value $ 5.40 $ 4.36 $ 6.36 $ 8.39 -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Separate Account 45 number of units outstanding (000's) 1,206 1,333 1,187 295 -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) 6,805 4,722 3,856 1,315 -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/Lazard Small Cap Value
- ------------------------------------------------------------------------------------------------------------------------------------
Unit value $ 14.17 $ 10.49 $ 12.37 $ 10.68 $ 9.15 $ 9.14 --
- ------------------------------------------------------------------------------------------------------------------------------------
Separate Account 45 number of units outstanding (000's) 370 275 -- -- -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) 7,354 5,021 3,274 2,109 98 344 --
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/Marsico Focus
- ------------------------------------------------------------------------------------------------------------------------------------
Unit value $ 12.72 $ 9.86 $ 11.33 -- -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Separate Account 45 number of units outstanding (000's) 685 427 24 -- -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) 10,296 2,423 78 -- -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/Mercury Basic Value Equity
- ------------------------------------------------------------------------------------------------------------------------------------
Unit value $ 17.99 $ 13.94 $ 17.00 $ 16.37 $ 14.88 $ 12.71 $ 11.58
- ------------------------------------------------------------------------------------------------------------------------------------
Separate Account 45 number of units outstanding (000's) 1,296 1,419 1,305 431 163 -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) 4,335 2,235 1,559 1,079 173 -- --
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/Mercury International Value
- ------------------------------------------------------------------------------------------------------------------------------------
Unit value $ 13.84 $ 10.98 $ 13.39 $ 17.34 $ 20.10 $ 12.75 $ 10.84
- ------------------------------------------------------------------------------------------------------------------------------------
Separate Account 45 number of units outstanding (000's) 487 498 -- -- -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) 5,316 3,555 3,126 2,033 771 422 4
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/MFS Emerging Growth Companies
- ------------------------------------------------------------------------------------------------------------------------------------
Unit value $ 11.68 $ 9.18 $ 14.20 $ 21.88 $ 27.40 $ 16.03 $ 12.11
- ------------------------------------------------------------------------------------------------------------------------------------
Separate Account 45 number of units outstanding (000's) 1,345 1,556 1,966 1,834 383 -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) 4,710 4,661 5,707 5,759 1,680 200 2
- ------------------------------------------------------------------------------------------------------------------------------------
Appendix I: Condensed financial information A-3
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, 2003.
- ------------------------------------------------------------------------------------------------------------------------------------
Years Ended December 31,
-------------------------------------------------------------------------
2003 2002 2001 2000 1999 1998 1997
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/MFS Investors Trust
- ------------------------------------------------------------------------------------------------------------------------------------
Unit value $ 8.07 $ 6.72 $ 8.64 $ 10.45 $ 10.70 -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Separate Account 45 number of units outstanding (000's) 474 474 543 359 103 -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) 9,707 8,237 8,655 7,052 2,906 -- --
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/Money Market
- ------------------------------------------------------------------------------------------------------------------------------------
Unit value $ 26.78 $ 27.06 $ 27.16 $ 26.65 $ 25.55 $ 24.80 $ 23.98
- ------------------------------------------------------------------------------------------------------------------------------------
Separate Account 45 number of units outstanding (000's) 1,911 2,863 3,954 1,882 549 -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) 6,370 9,288 13,759 -- 9,875 5,805 349
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/Putnam Growth & Income Value
- ------------------------------------------------------------------------------------------------------------------------------------
Unit value $ 11.86 $ 9.51 $ 11.94 $ 13.02 $ 12.39 $ 12.76 $ 11.50
- ------------------------------------------------------------------------------------------------------------------------------------
Separate Account 45 number of units outstanding (000's) 377 359 287 124 12 -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) 5,701 4,777 4,156 1,755 978 714 17
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/Putnam Voyager
- ------------------------------------------------------------------------------------------------------------------------------------
Unit value $ 11.27 $ 9.24 $ 12.75 $ 17.16 $ 21.20 $ 16.54 $ 12.33
- ------------------------------------------------------------------------------------------------------------------------------------
Separate Account 45 number of units outstanding (000's) 39 16 -- -- -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) 2,971 2,171 2,221 1,658 576 282 --
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/Small Company Index
- ------------------------------------------------------------------------------------------------------------------------------------
Unit value $ 12.18 $ 8.48 $ 10.90 $ 10.86 $ 11.42 $ 9.61 --
- ------------------------------------------------------------------------------------------------------------------------------------
Separate Account 45 number of units outstanding (000's) 358 240 239 113 23 -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) 4,084 1,913 1,535 1,382 522 211 --
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/Technology
- ------------------------------------------------------------------------------------------------------------------------------------
Unit value $ 4.04 $ 2.86 $ 4.91 $ 6.60 -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Separate Account 45 number of units outstanding (000's) 2,698 2,823 3,001 1,672 -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) 8,291 6,863 7,562 5,505 -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
A-4 Appendix I: Condensed financial information
Appendix II: Purchase considerations for QP contracts
- --------------------------------------------------------------------------------
Trustees who are considering the purchase of an Equitable Accumulator(R)
Select(SM) QP contract should discuss with their tax advisers whether this is an
appropriate investment vehicle for the employer's plan. Trustees should
consider whether the plan provisions permit the investment of plan assets in
the QP contract, the distribution of such an annuity, the purchase of the
guaranteed minimum income benefit and the payment of death benefits in
accordance with the requirements of the federal income tax rules. The QP
contract and this Prospectus should be reviewed in full, and the following
factors, among others, should be noted. Assuming continued plan qualification
and operation, earnings on qualified plan assets will accumulate value on a
tax-deferred basis even if the plan is not funded by the Equitable
Accumulator(R) Select(SM) QP contract or another annuity. Therefore, you should
purchase an Equitable Accumulator(R) QP contract to fund a plan for the
contract's features and benefits other than tax deferral, after considering the
relative costs and benefits of annuity contracts and other types of
arrangements and funding vehicles. This QP contract accepts transfer
contributions only and not regular, ongoing payroll contributions. For 401(k)
plans under defined contribution plans, no employee after-tax contributions are
accepted.
We will not accept defined benefit plans. For defined contribution plans we
will only accept transfers from another defined contribution plan or a change
of investment vehicles in the plan. Only one additional transfer contribution
may be made per contract year. If overfunding of a plan occurs, withdrawals
from the QP contract may be required. A market value adjustment may apply.
Further, Equitable Life will not perform or provide any plan recordkeeping
services with respect to the QP contracts. The plan's administrator will be
solely responsible for performing or providing for all such services. There is
no loan feature offered under the QP contracts, so if the plan provides for
loans and a participant/employee takes a loan from the plan, other plan assets
must be used as the source of the loan and any loan repayments must be credited
to other investment vehicles and/or accounts available under the plan.
Given that required minimum distributions must generally commence from the plan
for annuitants after age 70-1/2, trustees should consider that:
o the QP contract may not be an appropriate purchase for annuitants
approaching or over age 70-1/2;
o although certain provisions of the Temporary Regulations on required
minimum distributions which would have required that the actuarial value of
additional annuity contract benefits be added to the dollar amount credited
for purposes of calculating required minimum distributions have currently
been suspended, these or similar provisions may apply in future years, and
could increase the amounts required to be distributed from the contract;
and
o the guaranteed minimum income benefit under baseBUILDER may not be an
appropriate feature for annuitants who are older than age 601/2 when the
contract is issued.
Finally, because the method of purchasing the QP contract, including the large
initial contribution and the features of the QP contract may appeal more to
plan participants/employees who are older and tend to be highly paid, and
because certain features of the QP contract are available only to plan
participants/employees who meet certain minimum and/or maximum age
requirements, plan trustees should discuss with their advisers whether the
purchase of the QP contract would cause the plan to engage in prohibited
discrimination in contributions, benefits or otherwise.
Appendix II: Purchase considerations for QP contracts B-1
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 was allocated
on February 13, 2004 to a fixed maturity option with a maturity date of
February 15, 2013 (nine years later) at a hypothetical rate to maturity of
7.00%, resulting in a maturity value of $183,846 on the maturity date. We
further assume that a withdrawal of $50,000 is made four years later on
February 15, 2009.
- --------------------------------------------------------------------------------
Hypothetical assumed
rate to maturity on
February 15, 2009
- --------------------------------------------------------------------------------
5.00% 9.00%
- --------------------------------------------------------------------------------
As of February 15, 2009 (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 February 15, 2009 (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 portion of 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 portion of a positive
market value adjustment is realized.
C-1 Appendix III: Market value adjustment example
Appendix IV: Guaranteed minimum death benefit example
- --------------------------------------------------------------------------------
The death benefit under the contracts is equal to the account value or, if
greater, the guaranteed minimum death benefit.
The following illustrates the guaranteed minimum death benefit calculation.
Assuming $100,000 is allocated to the variable investment options (with no
allocation to the AXA Premier VIP Core Bond, EQ/Alliance Intermediate
Government Securities, EQ/Money Market or EQ/Alliance Quality Bond options or
the fixed maturity options), no additional contributions, no transfers, no
withdrawals and no loans under a Rollover TSA contract, the guaranteed minimum
death benefit for an annuitant age 45 would be calculated as follows:
- ---------------------------------------------------------------------------------------
End of 5% roll up to age 80 Annual ratchet to age 80
contract guaranteed minimum guaranteed minimum
year Account value death benefit(1) death benefit
- ---------------------------------------------------------------------------------------
1 $105,000 $ 105,000(1) $ 105,000(3)
2 $115,500 $ 110,250(2) $ 115,500(3)
3 $129,360 $ 115,763(2) $ 129,360(3)
4 $103,488 $ 121,551(1) $ 129,360(4)
5 $113,837 $ 127,628(1) $ 129,360(4)
6 $127,497 $ 134,010(1) $ 129,360(4)
7 $127,497 $ 140,710(1) $ 129,360(4)
- ---------------------------------------------------------------------------------------
The account values for contract years 1 through 7 are based on hypothetical
rates of return of 5.00%, 10.00%, 12.00%, (20.00)%, 10.00%, 12.00% and 0.00%.
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.
5% ROLL UP TO AGE 80
(1) At the end of contract year 1, and again at the end of contract years 4
through 7, the death benefit will be the guaranteed minimum death benefit.
(2) At the end of contract years 2 and 3, the death benefit will be the current
account value since it is higher than the current guaranteed minimum death
benefit.
ANNUAL RATCHET TO AGE 80
(3) At the end of contract years 1 through 3, the guaranteed minimum death
benefit is the current account value.
(4) At the end of contract years 4 through 7, the guaranteed minimum death
benefit is the guaranteed minimum death benefit at the end of the prior year
since it is equal to or higher than the current account value.
Appendix IV: Guaranteed minimum death benefit example D-1
Statement of additional information
- --------------------------------------------------------------------------------
TABLE OF CONTENTS
Page
Tax Information 2
Unit Values 15
Equitable Life's Pending Name Change 15
Custodian and Independent Auditors 15
Distribution of the Contracts 15
Financial Statements 16
How to obtain an Equitable Accumulator(R) Select(SM) Statement of Additional
Information for Separate Account No. 45 and Separate Account No. 49
Send this request form to:
Equitable Accumulator(R) Select(SM)
P.O. Box 1547
Secaucus, NJ 07096-1547
Please send me a combined Equitable Accumulator(R) Select SAI for Separate
Account No. 45 and Separate Account No. 49 dated May 1, 2004:
- --------------------------------------------------------------------------------
Name
- --------------------------------------------------------------------------------
Address
- --------------------------------------------------------------------------------
City State Zip
(SAI 4ACS(5/03))
X00687
Oregon only
The Equitable Life Assurance Society of the United States
SUPPLEMENT DATED MAY 1, 2004 TO THE CURRENT PROSPECTUSES FOR:
EQUITABLE ACCUMULATOR(R) EQUITABLE ACCUMULATOR(R) ELITE(SM)
EQUITABLE ACCUMULATOR(R)PLUS(SM) EQUITABLE ACCUMULATOR(R) SELECT(SM)
- --------------------------------------------------------------------------------
For delivery to Smith Barney customers
This supplement modifies certain information in the above-referenced
Prospectuses, Supplements to Prospectuses and Statements of Additional
Information ("SAIs"), (together, the "Prospectuses"). Unless otherwise
indicated, all other information included in the Prospectuses remains
unchanged. The terms and section headings we use in this supplement have the
same meaning as in the Prospectuses. You should keep this supplement with your
Prospectuses.
Please note the following information:
ELECTRONIC APPLICATIONS AND INITIAL CONTRIBUTIONS
Your Equitable Accumulator(R) Series contract date will generally be the
business day Smith Barney receives your initial contribution and all
information needed to process your application, along with any required
documents, and transmits your order to us in accordance with our processing
procedures. We may reject your application and return your contribution or
issue your contract on a later date if any of the limitations described below
apply.
SUBSEQUENT CONTRIBUTIONS
Any additional contributions you may make will generally be applied to your
contract on the business day Smith Barney receives the additional contribution
from you and transmits your order to us in accordance with our processing
procedures. We may reject your order and return your additional contribution or
credit your additional contribution to your contract at a later date if any of
the limitations described below apply.
LIMITATIONS
We consider Smith Barney to be a "processing office" for the purpose of
receiving applications and contributions as described above.
The procedures described above are not available for 1035 exchanges or other
replacement transactions; other types of transactions may also be excluded. You
must provide all information and documents we require with respect to your
initial or additional contribution. The amount of the initial or additional
contribution you are making must be permitted under your contract. Your
application and contribution must be made in accordance with all the other
terms and conditions described in our prospectus. After receiving your
contribution, together with all required information and documents, from you,
Smith Barney must deliver them to us in accordance with our processing
arrangements with Smith Barney.
Smith Barney may establish a "closing time" for receipt of applications and
contribution requests under the above arrangement that is earlier than the end
of the business day. Any such earlier closing time may be established without
prior notice to you. Also, while we are generally open on the same business
days as Smith Barney, a business day for the purposes of this supplement will
be our business day.
We or Smith Barney may change or discontinue these arrangements at any time
without prior notice. If you change Smith Barney as your broker-dealer of
record on your contract, the above procedures will no longer apply, although we
may have similar arrangements with your new broker-dealer.
You may always make subsequent contributions under your contract by any other
method described in the Accumulator(R) Series prospectus for your contract, as
supplemented from time to time. All applications and contributions are subject
to acceptance. These arrangements may not be available in every state.
Acc Series '02 and '04 and OR
New Business (5/01)
The Equitable Life Assurance Society of the United States
1290 Avenue of the Americas
New York, NY 10104
(212) 554-1234
x00775
Equitable Accumulator(R)
A combination variable and fixed deferred annuity contract
PROSPECTUS DATED MAY 1, 2004
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. You should read the prospectuses for each
Trust, which contain important information about the portfolios.
- --------------------------------------------------------------------------------
WHAT IS THE EQUITABLE ACCUMULATOR(R)?
Equitable Accumulator(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 offers income and death
benefit protection. It also offers 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 fixed maturity options ("investment options"). This
contract is offered in Oregon only.
- --------------------------------------------------------------------------------
Variable investment options
- --------------------------------------------------------------------------------
o AXA Aggressive Allocation(1) o EQ/Alliance Small Cap Growth
o AXA Conservative Allocation(1) o EQ/Bernstein Diversified Value
o AXA Conservative-Plus Allocation(1) o EQ/Calvert Socially Responsible
o AXA Moderate Allocation(1) o EQ/Capital Guardian International
o AXA Moderate-Plus Allocation(1) o EQ/Capital Guardian Research
o AXA Premier VIP Aggressive Equity o EQ/Capital Guardian U.S. Equity
o AXA Premier VIP Core Bond o EQ/Emerging Markets Equity
o AXA Premier VIP Health Care o EQ/Equity 500 Index
o AXA Premier VIP High Yield o EQ/Evergreen Omega
o AXA Premier VIP International Equity o EQ/FI Mid Cap
o AXA Premier VIP Large Cap Core o EQ/FI Small/Mid Cap Value
Equity o EQ/J.P. Morgan Core Bond
o AXA Premier VIP Large Cap Growth o EQ/Janus Large Cap Growth
o AXA Premier VIP Large Cap Value o EQ/Lazard Small Cap Value
o AXA Premier VIP Small/Mid Cap o EQ/Marsico Focus
Growth o EQ/Mercury Basic Value Equity
o AXA Premier VIP Small/Mid Cap Value o EQ/Mercury International Value
o AXA Premier VIP Technology o EQ/MFS Emerging Growth Companies
o EQ/Alliance Common Stock o EQ/MFS Investors Trust
o EQ/Alliance Growth and Income o EQ/Money Market
o EQ/Alliance Intermediate Government o EQ/Putnam Growth & Income Value
Securities o EQ/Putnam Voyager
o EQ/Alliance International o EQ/Small Company Index
o EQ/Alliance Premier Growth o EQ/Technology(2)
o EQ/Alliance Quality Bond
- --------------------------------------------------------------------------------
(1) The "AXA Allocation" portfolio.
(2) Subject to shareholder approval, on or about May 14, 2004, we anticipate
that the EQ/Technology investment option (the "replaced option"), which
invests in a corresponding portfolio of EQ Advisors Trust will be merged
into the AXA Premier VIP Technology investment option (the "surviving
option"), which invests in a corresponding portfolio of AXA Premier VIP
Trust. At that time, we will move the assets in the replaced option into
the surviving option and all allocation elections to the replaced option
will be considered allocations to the surviving option.
You may allocate amounts to any of the variable investment options. Each
variable investment option is a subaccount of Separate Account No. 45 and
Separate Account No. 49. 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.
We offer "Rollover IRA" and "Roth Conversion IRA."
o An annuity that is an investment vehicle for a qualified defined
contribution plan ("QP").
o An Internal Revenue Code Section 403(b) Tax-Sheltered Annuity ("TSA") --
("Rollover TSA").
A contribution of at least $5,000 is required to purchase an NQ, Rollover IRA,
Roth Conversion IRA, QP or Rollover TSA 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, 2004, 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 1-800-789-7771. 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.
X00685
Oregon only
Contents of this Prospectus
- --------------------------------------------------------------------------------
EQUITABLE ACCUMULATOR(R)
- --------------------------------------------------------------------------------
Index of key words and phrases 4
Who is Equitable Life? 5
How to reach us 6
Equitable Accumulator(R) at a glance -- key features 8
- --------------------------------------------------------------------------------
FEE TABLE 11
- --------------------------------------------------------------------------------
Example 14
Condensed financial Information 17
- --------------------------------------------------------------------------------
1. CONTRACT FEATURES AND BENEFITS 18
- --------------------------------------------------------------------------------
How you can purchase and contribute to your contract 18
Owner and annuitant requirements 21
How you can make your contributions 21
What are your investment options under the contract? 21
Allocating your contributions 25
Your benefit base 26
Annuity purchase factors 27
Our baseBUILDER option 27
Guaranteed minimum death benefit 28
Your right to cancel within a certain number of days 29
- --------------------------------------------------------------------------------
2. DETERMINING YOUR CONTRACT'S VALUE 30
- --------------------------------------------------------------------------------
Your account value and cash value 30
Your contract's value in the variable investment options 30
Your contract's value in the fixed maturity options 30
Termination of your contract 30
- ----------------------
"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
- --------------------------------------------------------------------------------
3. TRANSFERRING YOUR MONEY AMONG
INVESTMENT OPTIONS 31
- --------------------------------------------------------------------------------
Transferring your account value 31
Disruptive transfer activity 31
Rebalancing your account value 31
- --------------------------------------------------------------------------------
4. ACCESSING YOUR MONEY 33
- --------------------------------------------------------------------------------
Withdrawing your account value 33
How withdrawals are taken from your account value 34
How withdrawals affect your guaranteed minimum income benefit
and guaranteed minimum death benefit 34
Loans under Rollover TSA contracts 34
Surrendering your contract to receive its cash value 35
When to expect payments 35
Your annuity payout options 35
- --------------------------------------------------------------------------------
5. CHARGES AND EXPENSES 38
- --------------------------------------------------------------------------------
Charges that Equitable Life deducts 38
Charges that the Trusts deduct 39
Group or sponsored arrangements 39
Other distribution arrangements 40
- --------------------------------------------------------------------------------
6. PAYMENT OF DEATH BENEFIT 41
- --------------------------------------------------------------------------------
Your beneficiary and payment of benefit 41
How death benefit payment is made 41
Beneficiary continuation option 42
- --------------------------------------------------------------------------------
7. TAX INFORMATION 43
- --------------------------------------------------------------------------------
Overview 43
Buying a contract to fund a retirement arrangement 43
Transfers among investment options 43
Taxation of nonqualified annuities 43
Individual retirement arrangements (IRAs) 45
Special rules for contracts funding qualified plans 46
Tax-Sheltered Annuity contracts (TSAs) 46
Federal and state income tax withholding and
information reporting 47
Impact of taxes to Equitable Life 48
- --------------------------------------------------------------------------------
8. MORE INFORMATION 49
- --------------------------------------------------------------------------------
About Separate Account No. 45 and Separate Account No. 49 49
About the Trusts 49
About our fixed maturity options 49
About the general account 50
About other methods of payment 50
Dates and prices at which contract events occur 51
About your voting rights 51
About legal proceedings 52
About our independent auditors 52
Financial statements 52
Transfers of ownership, collateral assignments, loans
and borrowing 52
Distribution of the contracts 52
- --------------------------------------------------------------------------------
9. INCORPORATION OF CERTAIN DOCUMENTS
BY REFERENCE 54
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
APPENDICES
- --------------------------------------------------------------------------------
I -- Condensed financial information A-1
II -- Purchase considerations for QP contracts B-1
III -- Market value adjustment example C-1
IV -- Guaranteed minimum death benefit example D-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
12 month dollar cost averaging 26
account value 30
administrative charge 38
annual ratchet death benefit 28
annuitant 18
annuity maturity date 37
annuity payout options 35
annuity purchase factors 27
automatic investment program 51
baseBUILDER 27
baseBUILDER Benefit charge 39
beneficiary 41
Beneficiary Continuation Option ("BCO") 42
benefit base 26
business day 51
cash value 30
charges for state premium and other applicable taxes 39
contract date 9
contract date anniversary 9
contract year 9
contributions to Roth IRAs 45
regular contributions 46
rollover and direct transfers 46
conversion contributions 46
contributions to traditional IRAs 45
regular contributions 45
rollovers and transfers 45
disability, terminal illness or confinement
to nursing home 39
disruptive transfer activity 31
dollar cost averaging 26
EQAccess 6
ERISA 34
fixed maturity options 25
free look 29
free withdrawal amount 38
general account 50
guaranteed minimum death benefit 28
guaranteed minimum income benefit 27
IRA cover
IRS 43
Page
investment options cover
lifetime required minimum distribution withdrawals 34
loan reserve account 35
loans under Rollover TSA contracts 34
lump sum withdrawals 33
market adjusted amount 25
market value adjustment 25
market timing 31
maturity dates 25
maturity value 25
Mortality and expense risks charge 38
NQ cover
participant 21
portfolio cover
Principal assurance allocation 25
processing office 6
Protection Plus 29
Protection Plus charge 39
QP cover
rate to maturity 25
Rebalancing 31
Rollover IRA cover
Rollover TSA cover
roll-up death benefit 28
Roth Conversion IRA cover
Roth IRA 45
SAI cover
SEC cover
self-directed allocation 25
Separate Account No. 45 and Separate Account No. 49 45
substantially equal withdrawals 33
Successor owner and annuitant 41
systematic withdrawals 33
TOPS 6
TSA cover
traditional IRA 45
Trusts cover
unit 30
variable investment options 21
wire transmittals and electronic applications 50
withdrawal charge 38
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 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 (Guaranteed Fixed
Interest Accounts in supplemental materials)
variable investment options Investment Funds
account value Annuity Account Value
rate to maturity Guaranteed Rates
unit Accumulation Unit
baseBUILDER Guaranteed Minimum Income Benefit
---------------------------------------------------------------------------
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 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
$508.31 billion in assets as of December 31, 2003. 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.
Effective on or about September 7, 2004, we expect, subject to regulatory
approval, to change the name of "The Equitable Life Assurance Society of the
United States" to "AXA Equitable Life Insurance Company." When the name change
becomes effective, all references in any current prospectus, prospectus
supplement or statement of additional information to "The Equitable Life
Assurance Society of the United States" will become references to "AXA
Equitable Life Insurance Company." Accordingly, all references to "Equitable
Life" or "Equitable" will become references to "AXA Equitable."
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 CONTRIBUTIONS SENT BY REGULAR MAIL:
- --------------------------------------------------------------------------------
Equitable Accumulator(R)
P.O. Box 13014
Newark, NJ 07188-0014
- --------------------------------------------------------------------------------
FOR CONTRIBUTIONS SENT BY EXPRESS DELIVERY:
- --------------------------------------------------------------------------------
Equitable Accumulator(R)
c/o Bank One, N.A.
300 Harmon Meadow Boulevard, 3rd Floor
Attn: Box 13014
Secaucus, NJ 07094
- --------------------------------------------------------------------------------
FOR ALL OTHER COMMUNICATIONS (E.G., REQUESTS FOR TRANSFERS, WITHDRAWALS, OR
REQUIRED NOTICES) SENT BY REGULAR MAIL:
- --------------------------------------------------------------------------------
Equitable Accumulator(R)
P.O. Box 1547
Secaucus, NJ 07096-1547
- --------------------------------------------------------------------------------
FOR ALL OTHER COMMUNICATIONS (E.G., REQUESTS FOR TRANSFERS, WITHDRAWALS, OR
REQUIRED NOTICES) SENT BY EXPRESS DELIVERY:
- --------------------------------------------------------------------------------
Equitable Accumulator(R)
200 Plaza Drive, 4th Floor
Secaucus, NJ 07094
- --------------------------------------------------------------------------------
REPORTS WE PROVIDE:
- --------------------------------------------------------------------------------
o written confirmation of financial transactions;
o statement of your contract values at the close of each calendar year and
any calendar quarter in which there was a financial transaction; and
o annual statement of your contract values as of the close of the contract
year, including notification of eligibility to exercise the guaranteed
minimum income benefit, if applicable.
- --------------------------------------------------------------------------------
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 investment
options;
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 1-888-909-7770. If you are a client with AXA
Advisors you may use EQAccess by visiting our web site at
http://www.axaonline.com and clicking on EQAccess. All other clients may access
EQAccess by visiting our other web site at http://www.equitable.com. 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 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
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 (1-800-789-7771) to speak with one of our
customer service representatives. Our customer service representatives are
available on any business day from 8:30 a.m. until 5:30 p.m., Eastern Time.
WE REQUIRE THAT THE FOLLOWING TYPES OF COMMUNICATIONS BE ON SPECIFIC FORMS WE
PROVIDE FOR THAT PURPOSE:
(1) authorization for telephone transfers by your financial professional
(available only for contracts distributed through AXA Distributors);
(2) conversion of a traditional IRA to a Roth Conversion IRA;
(3) election of the automatic investment program;
6 Who is Equitable Life?
(4) election of the rebalancing program;
(5) requests for loans under Rollover TSA contracts;
(6) spousal consent for loans under Rollover TSA contracts;
(7) requests for withdrawals or surrenders from Rollover TSA contracts;
(8) tax withholding elections;
(9) election of the beneficiary continuation option;
(10) IRA contribution recharacterizations;
(11) certain section 1035 exchanges;
(12) direct transfers; and
(13) exercise of the Guaranteed minimum income benefit.
WE ALSO HAVE SPECIFIC FORMS THAT WE RECOMMEND YOU USE FOR THE FOLLOWING TYPES
OF REQUESTS:
(1) address changes;
(2) beneficiary changes;
(3) transfers between investment options;
(4) contract surrender and withdrawal requests;
(5) death claims;
(6) general dollar cost averaging; and
(7) 12 month dollar cost averaging.
TO CANCEL OR CHANGE 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;
(4) 12 month dollar cost averaging;
(5) substantially equal withdrawals;
(6) systematic withdrawals and;
(7) 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
Equitable Accumulator(R) at a glance -- key features
- --------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
Professional investment Equitable Accumulator(R)'s variable investment options invest in different portfolios managed by
management professional investment advisers.
- ------------------------------------------------------------------------------------------------------------------------------------
Fixed maturity options o 10 fixed maturity options ("FMOs") with maturities ranging from approximately 1 to 10 years
(subject to availability).
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. If you withdraw or transfer only a portion
of a fixed maturity amount, 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 also applies.
- ------------------------------------------------------------------------------------------------------------------------------------
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), Tax Sheltered
Annuity (TSA) or to fund an employer retirement plan (QP or Qualified Plan), 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 compared 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 and in the SAI.)
- ------------------------------------------------------------------------------------------------------------------------------------
baseBUILDER(R) protection baseBUILDER combines a guaranteed minimum income benefit with a guaranteed minimum death benefit
provided under the contract. The guaranteed minimum income benefit provides income protection for you
while the annuitant lives once the owner elects to annuitize the contract. The guaranteed minimum death
benefit provides a death benefit for the beneficiary should the annuitant die.
- ------------------------------------------------------------------------------------------------------------------------------------
Contribution amounts o Initial minimum: $5,000
o Additional minimum: $1,000 (NQ, QP and Rollover TSA contracts)
$100 monthly and $300 quarterly under our automatic investment program
(NQ contracts)
$50 (IRA contracts)
Maximum contribution limitations may apply. In general, contributions are limited to $1.5 million.
- ------------------------------------------------------------------------------------------------------------------------------------
8 Equitable Accumulator(R) at a glance -- key features
- ------------------------------------------------------------------------------------------------------------------------------------
Access to your money o Lump sum withdrawals
o Several withdrawal options on a periodic basis
o Loans under Rollover TSA contracts
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 tax penalty.
- ------------------------------------------------------------------------------------------------------------------------------------
Payout alternative o Fixed annuity payout options
o Variable Immediate Annuity payout options
o Income Manager(R) payout options
- ------------------------------------------------------------------------------------------------------------------------------------
Additional features o Guaranteed minimum death benefit even if you do not elect baseBuilder
o Dollar cost averaging
o Automatic investment program
o Account value rebalancing (quarterly, semiannually and annually)
o Free transfers
o Waiver of withdrawal charge for disability, terminal illness or confinement to a nursing home
o Protection Plus, an optional death benefit available under certain contracts (subject to state
availability)
- ------------------------------------------------------------------------------------------------------------------------------------
Fees and charges o Daily charges on amounts invested in variable investment options for mortality and expense risks at a
current annual rate of 1.35%.
o Annual 0.30% benefit base charge for the optional baseBUILDER benefit until you exercise your guaranteed
minimum income benefit, elect another annuity payout or the contract date anniversary after the annuitant
reaches age 83, whichever occurs first. The annual benefit base charge is 0.15% if the 5% roll up to age
70, if available, is elected. The benefit base is described under "Your benefit base" in "Contract features
and benefits" later in this Prospectus. If you do not elect baseBUILDER, you still receive a guaranteed
minimum death benefit under your contract at no additional charge.
o Annual 0.20% Protection Plus charge for this optional death benefit.
o No sales charge deducted at the time you make contributions. During the first seven contract years
following a contribution, a charge will be deducted from amounts that you withdraw that exceed 15% of your
account value. We use the account value at the beginning of each contract year to calculate the 15% amount
available. The charge begins at 7% in the first contract year following a contribution. It declines by 1%
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." For example, if your contract date is May 1, your contract date
anniversary is April 30.
-----------------------------------------------------------------------------------------------------------
o We deduct a charge designed to approximate certain taxes that may be imposed on us, such as premium taxes
in your state. This 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 the Variable Immediate Annuity
payout options.
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 0.10% to 1.20% annually,
12b-1 fees of 0.25% annually and other expenses.
- ------------------------------------------------------------------------------------------------------------------------------------
Annuitant issue ages NQ: 0-83
Rollover IRA, Roth Conversion
IRA, and Rollover TSA: 20-83
QP: 20-75
- ------------------------------------------------------------------------------------------------------------------------------------
Equitable Accumulator(R) at a glance -- key features 9
THE ABOVE IS NOT A COMPLETE DESCRIPTION OF ALL MATERIAL PROVISIONS OF THE
CONTRACT. IN SOME CASES, RESTRICTIONS OR EXCEPTIONS APPLY. ALSO, ALL FEATURES
OF THE CONTRACT 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.
OTHER CONTRACTS
We offer a variety of fixed and variable annuity contracts. They may offer
features, including investment options, credits, fees and/or charges that are
different from those in the contracts 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 Equitable Accumulator(R) at a glance -- key features
Fee table
- --------------------------------------------------------------------------------
The following tables describe the fees and expenses that you will pay when
buying, owning, and surrendering the contract. Each of the charges and expenses
is more fully described in "Charges and expenses" later in this Prospectus.
The first table describes fees and expenses that you will pay at the time that
you surrender the contract or if you make certain withdrawals or apply your
cash value to certain payout options or if you purchase a Variable Immediate
Annuity payout option. Charges designed to approximate certain taxes that may
be imposed on us, such as premium taxes in your state, may also apply. Charges
for certain features shown in the fee table are mutually exclusive.
- ----------------------------------------------------------------------------------------------------------
Charges we deduct from your account value at the time you request certain transactions
- ----------------------------------------------------------------------------------------------------------
Maximum withdrawal charge as a percentage of contributions with-
drawn (deducted if you surrender your contract, make certain
withdrawals or apply your cash value to certain payout options).(1) 7.00%
Charge if you elect a Variable Immediate Annuity payout option $350
- ----------------------------------------------------------------------------------------------------------
The next table describes the fees and expenses that you will pay periodically
during the time that you own the contract, not including the underlying trust
portfolio fees and expenses.
- ----------------------------------------------------------------------------------------------------------
Charges we deduct from your variable investment options expressed as an
annual percentage of daily net assets
- ----------------------------------------------------------------------------------------------------------
Mortality and expense risks 1.10%
Administrative 0.25%
----
Total annual expenses 1.35%
- ----------------------------------------------------------------------------------------------------------
Charges we deduct from your account value each year if you elect the optional benefit
- ----------------------------------------------------------------------------------------------------------
baseBUILDER benefit charge(2) (calculated as a percentage of the
applicable benefit base. Deducted annually on each contract date
anniversary for which the benefit is in effect) 0.30%
- ----------------------------------------------------------------------------------------------------------
Protection Plus benefit charge (calculated as a percentage of the
account value. Deducted annually on each contract date anniversary
for which the benefit is in effect) 0.20%
- ----------------------------------------------------------------------------------------------------------
Fee table 11
You also bear your proportionate share of all fees and expenses paid by a
"Portfolio" that corresponds to any variable investment option you are using.
This table shows the lowest and highest total operating expenses charged by any
of the Portfolios that you will pay periodically during the time that you own
the contract. These fees and expenses are reflected in the Portfolio's net asset
value each day. Therefore, they reduce the invest- ment return of the Portfolio
and the related variable investment option. Actual fees and expenses are likely
to fluctuate from year to year. More detail concerning each Portfolio's fees and
expenses is contained in the Trust prospectus for the Portfolio.
- ----------------------------------------------------------------------------------------------------------
Portfolio operating expenses expressed as an annual percentage of daily net assets
- ----------------------------------------------------------------------------------------------------------
Total Annual Portfolio Operating Expenses for 2003 (expenses that are deducted Lowest Highest
from Portfolio assets including management fees, 12b-1 fees, service fees, and/or ---- -----
other expenses)(3) 0.56% 10.23%
This table shows the fees and expenses for 2003 as an annual percentage of each
Portfolio's daily average net assets.
- -----------------------------------------------------------------------------------------------------------------------------------
Under- Total Annual
lying Expenses Fee Waivers Net Total
Portfolio (Before and/or Expense Annual Expenses
Manage- 12b-1 Other Fees and Expense Reimburse- After Expense
Portfolio Name ment Fees(4) Fees(5) Expenses (6) Expenses(7) Limitation) ments(8) Limitations
- -----------------------------------------------------------------------------------------------------------------------------------
AXA PREMIER VIP TRUST:
- -----------------------------------------------------------------------------------------------------------------------------------
AXA Aggressive Allocation 0.10% 0.25% 5.91% 1.08% 7.34% (5.98)% 1.36%
AXA Conservative Allocation 0.10% 0.25% 9.04% 0.84% 10.23% (9.13)% 1.10%
AXA Conservative-Plus Allocation 0.10% 0.25% 4.13% 0.88% 5.36% (4.21)% 1.15%
AXA Moderate Allocation 0.10% 0.25% 0.39% 0.86% 1.60% (0.43)% 1.17%
AXA Moderate-Plus Allocation 0.10% 0.25% 1.77% 1.13% 3.25% (1.87)% 1.38%
AXA Premier VIP Aggressive Equity 0.62% 0.25% 0.15% -- 1.02% -- 1.02%
AXA Premier VIP Core Bond 0.60% 0.25% 0.26% -- 1.11% (0.16)% 0.95%
AXA Premier VIP Health Care 1.20% 0.25% 0.48% -- 1.93% (0.08)% 1.85%
AXA Premier VIP High Yield 0.59% 0.25% 0.16% -- 1.00% -- 1.00%
AXA Premier VIP International Equity 1.05% 0.25% 0.73% -- 2.03% (0.23)% 1.80%
AXA Premier VIP Large Cap Core Equity 0.90% 0.25% 0.52% -- 1.67% (0.32)% 1.35%
AXA Premier VIP Large Cap Growth 0.90% 0.25% 0.43% -- 1.58% (0.23)% 1.35%
AXA Premier VIP Large Cap Value 0.90% 0.25% 0.43% -- 1.58% (0.23)% 1.35%
AXA Premier VIP Small/Mid Cap Growth 1.10% 0.25% 0.35% -- 1.70% (0.10)% 1.60%
AXA Premier VIP Small/Mid Cap Value 1.10% 0.25% 0.31% -- 1.66% (0.06)% 1.60%
AXA Premier VIP Technology 1.20% 0.25% 0.83% -- 2.28% (0.43)% 1.85%
- -----------------------------------------------------------------------------------------------------------------------------------
EQ ADVISORS TRUST:
- -----------------------------------------------------------------------------------------------------------------------------------
EQ/Alliance Common Stock 0.48% 0.25% 0.06% -- 0.79% -- 0.79%
EQ/Alliance Growth and Income 0.57% 0.25% 0.06% -- 0.88% -- 0.88%
EQ/Alliance Intermediate Government
Securities 0.49% 0.25% 0.08% -- 0.82% -- 0.82%
EQ/Alliance International 0.74% 0.25% 0.13% -- 1.12% (0.02)% 1.10%
EQ/Alliance Premier Growth 0.90% 0.25% 0.05% -- 1.20% (0.04)% 1.16%
EQ/Alliance Quality Bond 0.52% 0.25% 0.06% -- 0.83% -- 0.83%
EQ/Alliance Small Cap Growth 0.75% 0.25% 0.07% -- 1.07% -- 1.07%
EQ/Bernstein Diversified Value 0.64% 0.25% 0.06% -- 0.95% 0.00% 0.95%
EQ/Calvert Socially Responsible 0.65% 0.25% 0.55% -- 1.45% (0.40)% 1.05%
EQ/Capital Guardian International 0.85% 0.25% 0.21% -- 1.31% (0.11)% 1.20%
EQ/Capital Guardian Research 0.65% 0.25% 0.07% -- 0.97% (0.02)% 0.95%
EQ/Capital Guardian U.S. Equity 0.65% 0.25% 0.07% -- 0.97% (0.02)% 0.95%
EQ/Emerging Markets Equity 1.15% 0.25% 0.40% -- 1.80% 0.00% 1.80%
EQ/Equity 500 Index 0.25% 0.25% 0.06% -- 0.56% -- 0.56%
EQ/Evergreen Omega 0.65% 0.25% 0.25% -- 1.15% (0.20)% 0.95%
EQ/FI Mid Cap 0.70% 0.25% 0.08% -- 1.03% (0.03)% 1.00%
EQ/FI Small/Mid Cap Value 0.75% 0.25% 0.10% -- 1.10% 0.00% 1.10%
EQ/Janus Large Cap Growth 0.90% 0.25% 0.09% -- 1.24% (0.09)% 1.15%
EQ/J.P. Morgan Core Bond 0.44% 0.25% 0.08% -- 0.77% 0.00% 0.77%
EQ/Lazard Small Cap Value 0.75% 0.25% 0.10% -- 1.10% 0.00% 1.10%
EQ/Marsico Focus 0.90% 0.25% 0.07% -- 1.22% (0.07)% 1.15%
EQ/Mercury Basic Value Equity 0.60% 0.25% 0.07% -- 0.92% 0.00% 0.92%
EQ/Mercury International Value 0.85% 0.25% 0.16% -- 1.26% (0.01)% 1.25%
EQ/MFS Emerging Growth Companies 0.65% 0.25% 0.07% -- 0.97% -- 0.97%
EQ/MFS Investors Trust 0.60% 0.25% 0.11% -- 0.96% (0.01)% 0.95%
EQ/Money Market 0.33% 0.25% 0.06% -- 0.64% -- 0.64%
- -----------------------------------------------------------------------------------------------------------------------------------
12 Fee table
- -----------------------------------------------------------------------------------------------------------------------------------
Under- Total Annual
lying Expenses Fee Waivers Net Total
Portfolio (Before and/or Expense Annual Expenses
Manage- 12b-1 Other Fees and Expense Reimburse- After Expense
Portfolio Name ment Fees(4) Fees(5) Expenses (6) Expenses(7) Limitation) ments(8) Limitations
- -----------------------------------------------------------------------------------------------------------------------------------
EQ ADVISORS TRUST:
- -----------------------------------------------------------------------------------------------------------------------------------
EQ/Putnam Growth & Income 0.60% 0.25% 0.10% -- 0.95% 0.00% 0.95%
EQ/Putnam Voyager 0.65% 0.25% 0.13% -- 1.03% (0.08)% 0.95%
EQ/Small Company Index 0.25% 0.25% 0.35% -- 0.85% 0.00% 0.85%
EQ/Technology 0.90% 0.25% 0.09% -- 1.24% (0.09)% 1.15%
- -----------------------------------------------------------------------------------------------------------------------------------
Notes:
(1) Deducted upon a withdrawal of amounts in excess of the 15% free withdrawal
amount, if applicable:
The withdrawal charge percentage we use is determined by the contract year in which Contract
you make the withdrawal or surrender your contract. For each contribution, we con- Year
sider the contract year in which we receive that contribution to be "contract year 1") 1.................. 7.00%
2.................. 6.00%
3.................. 5.00%
4.................. 4.00%
5.................. 3.00%
6.................. 2.00%
7.................. 1.00%
8+................. 0.00%
(2) The baseBUILDER benefit charge is 0.15% if the 5% roll up to age 70 is
elected.
(3) "Total Annual Portfolio Operating Expenses" are based, in part, on
estimated amounts for options added during the fiscal year 2003 and for the
underlying portfolios.
(4) The management fees for each Portfolio cannot be increased without a vote
of that Portfolio's shareholders. See footnote (8) for any expense
limitation agreement information.
(5) 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.
(6) Other expenses shown are those incurred in 2003. The amounts shown as
"Other Expenses" will fluctuate from year to year depending on actual
expenses. See footnote (8) for any expense limitation agreement
information.
(7) The AXA Allocation variable investment options invest in corresponding
portfolios of the AXA Premier VIP Trust. Each AXA Allocation portfolio in
turn invests in shares of other portfolios of the EQ Advisors Trust and AXA
Premier VIP Trust (the "underlying portfolios"). Amounts shown reflect each
AXA Allocation portfolio's pro rata share of the fees and expenses of the
various underlying portfolios in which it invests. The fees and expenses
have been estimated based on the respective weighted investment allocation
as of 12/31/03. A "--" indicates that the listed portfolio does not invest
in underlying portfolios, i.e., it is not an allocation portfolio.
(8) The amounts shown reflect any fee waivers and/or expense reimbursements
that applied to each Portfolio. A "--" indicates that there is no expense
limitation in effect. "0.00%" indicates that the expense limitation
arrangement did not result in a fee waiver or reimbursement. Equitable
Life, the investment manager of AXA Premier VIP Trust and EQ Advisors
Trust, has entered into Expense Limitation Agreements with respect to
certain Portfolios, which are effective through April 30, 2005. Under these
agreements Equitable Life has agreed to waive or limit its fees and assume
other expenses of certain Portfolios, if necessary, in an amount that
limits each affected Portfolio's total Annual Expenses (exclusive of
interest, taxes, brokerage commissions, capitalized expenditures and
extraordinary expenses) to not more than specified amounts. 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. See the Prospectus
for each applicable underlying Trust for more information about the
arrangements. In addition, a portion of the brokerage commissions of
certain portfolios of EQ Advisors Trust Portfolio and AXA Premier VIP Trust
Portfolio is used to reduce the applicable Portfolio's expenses. If the
above table reflected both the expense limitation arrangements plus the
portion of the brokerage commissions used to reduce portfolio expenses, the
net expenses would be as shown in the table below:
--------------------------------------------------------------------------
Portfolio Name
--------------------------------------------------------------------------
AXA Aggressive Allocation 0.95%
--------------------------------------------------------------------------
AXA Conservative Allocation 0.73%
--------------------------------------------------------------------------
AXA Conservative-Plus Allocation 0.78%
--------------------------------------------------------------------------
AXA Moderate Allocation 0.79%
--------------------------------------------------------------------------
AXA Moderate-Plus Allocation 0.99%
--------------------------------------------------------------------------
AXA Premier VIP Aggressive Equity 0.95%
--------------------------------------------------------------------------
AXA Premier VIP Health Care 1.84%
--------------------------------------------------------------------------
AXA Premier VIP International Equity 1.73%
--------------------------------------------------------------------------
AXA Premier VIP Large Cap Core Equity 1.32%
--------------------------------------------------------------------------
AXA Premier VIP Large Cap Growth 1.32%
--------------------------------------------------------------------------
AXA Premier VIP Large Cap Value 1.28%
--------------------------------------------------------------------------
AXA Premier VIP Small/Mid Cap Growth 1.46%
--------------------------------------------------------------------------
AXA Premier VIP Small/Mid Cap Value 1.52%
--------------------------------------------------------------------------
AXA Premier VIP Technology 1.70%
--------------------------------------------------------------------------
EQ/Alliance Common Stock 0.77%
--------------------------------------------------------------------------
EQ/Alliance Growth and Income 0.85%
--------------------------------------------------------------------------
EQ/Alliance Premier Growth 1.15%
--------------------------------------------------------------------------
EQ/Alliance Small Cap Growth 1.03%
--------------------------------------------------------------------------
EQ/Calvert Socially Responsible 1.00%
--------------------------------------------------------------------------
EQ/Capital Guardian International 1.18%
--------------------------------------------------------------------------
EQ/Capital Guardian Research 0.93%
--------------------------------------------------------------------------
EQ/Capital Guardian U.S. Equity 0.93%
--------------------------------------------------------------------------
EQ/Emerging Markets Equity 1.78%
--------------------------------------------------------------------------
EQ/Evergreen Omega 0.84%
--------------------------------------------------------------------------
Fee table 13
--------------------------------------------------------------------------
Portfolio Name
--------------------------------------------------------------------------
EQ/FI Mid Cap 0.88%
--------------------------------------------------------------------------
EQ/FI Small/Mid Cap Value 1.04%
--------------------------------------------------------------------------
EQ/Lazard Small Cap Value 1.00%
--------------------------------------------------------------------------
EQ/Marsico Focus 1.10%
--------------------------------------------------------------------------
EQ/Mercury Basic Value Equity 0.91%
--------------------------------------------------------------------------
EQ/Mercury International Value 1.18%
--------------------------------------------------------------------------
EQ/MFS Emerging Growth Companies 0.96%
--------------------------------------------------------------------------
EQ/MFS Investors Trust 0.94%
--------------------------------------------------------------------------
EQ/Putnam Growth & Income Value 0.93%
--------------------------------------------------------------------------
EQ/Putnam Voyager 0.93%
--------------------------------------------------------------------------
EQ/Technology 1.01%
--------------------------------------------------------------------------
EXAMPLE
This example is intended to help you compare the cost of investing in the
contract with the cost of investing in other variable annuity contracts. These
costs include contract owner transaction expenses, contract fees, separate
account annual expenses, and underlying trust fees and expenses (including the
underlying portfolio fees and expenses).
The example below shows the expenses that a hypothetical contract owner, who
has elected baseBUILDER and Protection Plus would pay in the situations
illustrated. Since the Protection Plus feature only applies under certain
contracts, expenses would be lower for contracts that do not have Protection
Plus.
The fixed maturity options and the 12 month dollar cost averaging program are
not covered by the example. However, the withdrawal charge, the charge for any
optional benefits and the charge if you elect a Variable Immediate Annuity
payout option do apply to the fixed maturity options. 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.
The example assumes that you invest $10,000 in the contract for the time
periods indicated. The example also assumes that your investment has a 5%
return each year. This example 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 example
is not an estimate or guarantee of future investment performance. Although your
actual costs may be higher or lower, based on these assumptions, your costs
would be:
14 Fee table
- -----------------------------------------------------------------------------------------------------------
If you surrender your contract at the end of the
applicable time period
- -----------------------------------------------------------------------------------------------------------
1 year 3 years 5 years 10 years
- -----------------------------------------------------------------------------------------------------------
AXA PREMIER VIP TRUST:
- -----------------------------------------------------------------------------------------------------------
AXA Aggressive Allocation $ 1,665.31 $ 3,272.13 $ 4,725.58 $ 7,970.97
AXA Conservative Allocation $ 1,968.33 $ 4,031.52 $ 5,773.48 $ 9,206.50
AXA Conservative-Plus Allocation $ 1,457.15 $ 2,720.59 $ 3,918.72 $ 6,847.17
AXA Moderate Allocation $ 1,062.63 $ 1,606.38 $ 2,175.45 $ 3,914.69
AXA Moderate-Plus Allocation $ 1,235.79 $ 2,106.68 $ 2,976.65 $ 5,347.57
AXA Premier VIP Aggressive Equity $ 1,001.35 $ 1,425.02 $ 1,877.72 $ 3,345.55
AXA Premier VIP Core Bond $ 1,010.80 $ 1,453.13 $ 1,924.12 $ 3,435.56
AXA Premier VIP Health Care $ 1,096.90 $ 1,706.80 $ 2,338.65 $ 4,218.24
AXA Premier VIP High Yield $ 999.25 $ 1,418.76 $ 1,867.38 $ 3,325.43
AXA Premier VIP International Equity $ 1,107.40 $ 1,737.43 $ 2,388.19 $ 4,309.21
AXA Premier VIP Large Cap Core Equity $ 1,069.60 $ 1,626.85 $ 2,208.81 $ 3,977.23
AXA Premier VIP Large Cap Growth $ 1,060.15 $ 1,599.07 $ 2,163.53 $ 3,892.28
AXA Premier VIP Large Cap Value $ 1,060.15 $ 1,599.07 $ 2,163.53 $ 3,892.28
AXA Premier VIP Small/Mid Cap Growth $ 1,072.75 $ 1,636.10 $ 2,223.87 $ 4,005.38
AXA Premier VIP Small/Mid Cap Value $ 1,068.55 $ 1,623.76 $ 2,203.79 $ 3,967.83
AXA Premier VIP Technology $ 1,133.65 $ 1,813.72 $ 2,511.10 $ 4,532.52
- -----------------------------------------------------------------------------------------------------------
EQ ADVISORS TRUST:
- -----------------------------------------------------------------------------------------------------------
EQ/Alliance Common Stock $ 977.20 $ 1,352.93 $ 1,758.31 $ 3,111.71
EQ/Alliance Growth and Income $ 986.65 $ 1,381.18 $ 1,805.18 $ 3,203.87
EQ/Alliance Intermediate Government Securities $ 980.35 $ 1,362.35 $ 1,773.95 $ 3,142.53
EQ/Alliance International $ 1,011.85 $ 1,456.25 $ 1,929.27 $ 3,445.51
EQ/Alliance Premier Growth $ 1,020.25 $ 1,481.19 $ 1,970.35 $ 3,524.74
EQ/Alliance Quality Bond $ 981.40 $ 1,365.49 $ 1,779.16 $ 3,152.78
EQ/Alliance Small Cap Growth $ 1,006.60 $ 1,440.64 $ 1,903.52 $ 3,395.66
EQ/Bernstein Diversified Value $ 994.00 $ 1,403.11 $ 1,841.50 $ 3,274.96
EQ/Calvert Socially Responsible $ 1,046.50 $ 1,558.85 $ 2,097.80 $ 3,768.16
EQ/Capital Guardian International $ 1,031.80 $ 1,515.41 $ 2,026.60 $ 3,632.62
EQ/Capital Guardian Research $ 996.10 $ 1,409.37 $ 1,851.86 $ 3,295.18
EQ/Capital Guardian U.S. Equity $ 996.10 $ 1,409.37 $ 1,851.86 $ 3,295.18
EQ/Emerging Markets Equity $ 1,083.25 $ 1,666.88 $ 2,273.92 $ 4,098.55
EQ/Equity 500 Index $ 953.05 $ 1,280.48 $ 1,637.70 $ 2,872.31
EQ/Evergreen Omega $ 1,015.00 $ 1,465.61 $ 1,944.69 $ 3,475.30
EQ/FI Mid Cap $ 1,002.40 $ 1,428.14 $ 1,882.89 $ 3,355.59
EQ/FI Small/Mid Cap Value $ 1,009.75 $ 1,450.01 $ 1,918.98 $ 3,425.60
EQ/J.P. Morgan Core Bond $ 975.10 $ 1,346.64 $ 1,747.87 $ 3,091.12
EQ/Janus Large Cap Growth $ 1,024.45 $ 1,493.64 $ 1,990.83 $ 3,564.11
EQ/Lazard Small Cap Value $ 1,009.75 $ 1,450.01 $ 1,918.98 $ 3,425.60
EQ/Marsico Focus $ 1,022.35 $ 1,487.42 $ 1,980.59 $ 3,544.44
EQ/Mercury Basic Value Equity $ 990.85 $ 1,393.72 $ 1,825.95 $ 3,244.56
EQ/Mercury International Value $ 1,026.55 $ 1,499.87 $ 2,001.06 $ 3,583.73
EQ/MFS Emerging Growth Companies $ 996.10 $ 1,409.37 $ 1,851.86 $ 3,295.18
EQ/MFS Investors Trust $ 995.05 $ 1,406.24 $ 1,846.68 $ 3,285.08
- -----------------------------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------------------
If you annuitize at the end of the
applicable time period
- -----------------------------------------------------------------------------------------------------------
1 year 3 years 5 years 10 years
- -----------------------------------------------------------------------------------------------------------
AXA PREMIER VIP TRUST:
- -----------------------------------------------------------------------------------------------------------
AXA Aggressive Allocation $ 1,315.31 $ 3,122.13 $ 4,775.58 $ 8,320.97
AXA Conservative Allocation $ 1,618.33 $ 3,881.52 $ 5,823.48 $ 9,556.50
AXA Conservative-Plus Allocation $ 1,107.15 $ 2,570.59 $ 3,968.72 $ 7,197.17
AXA Moderate Allocation $ 712.63 $ 1,456.38 $ 2,225.45 $ 4,264.69
AXA Moderate-Plus Allocation $ 885.79 $ 1,956.68 $ 3,026.65 $ 5,697.57
AXA Premier VIP Aggressive Equity $ 651.35 $ 1,275.02 $ 1,927.72 $ 3,695.55
AXA Premier VIP Core Bond $ 660.80 $ 1,303.13 $ 1,974.12 $ 3,785.56
AXA Premier VIP Health Care $ 746.90 $ 1,556.80 $ 2,388.65 $ 4,568.24
AXA Premier VIP High Yield $ 649.25 $ 1,268.76 $ 1,917.38 $ 3,675.43
AXA Premier VIP International Equity $ 757.40 $ 1,587.43 $ 2,438.19 $ 4,659.21
AXA Premier VIP Large Cap Core Equity $ 719.60 $ 1,476.85 $ 2,258.81 $ 4,327.23
AXA Premier VIP Large Cap Growth $ 710.15 $ 1,449.07 $ 2,213.53 $ 4,242.28
AXA Premier VIP Large Cap Value $ 710.15 $ 1,449.07 $ 2,213.53 $ 4,242.28
AXA Premier VIP Small/Mid Cap Growth $ 722.75 $ 1,486.10 $ 2,273.87 $ 4,355.38
AXA Premier VIP Small/Mid Cap Value $ 718.55 $ 1,473.76 $ 2,253.79 $ 4,317.83
AXA Premier VIP Technology $ 783.65 $ 1,663.72 $ 2,561.10 $ 4,882.52
- -----------------------------------------------------------------------------------------------------------
EQ ADVISORS TRUST:
- -----------------------------------------------------------------------------------------------------------
EQ/Alliance Common Stock $ 627.20 $ 1,202.93 $ 1,808.31 $ 3,461.71
EQ/Alliance Growth and Income $ 636.65 $ 1,231.18 $ 1,855.18 $ 3,553.87
EQ/Alliance Intermediate Government Securities $ 630.35 $ 1,212.35 $ 1,823.95 $ 3,492.53
EQ/Alliance International $ 661.85 $ 1,306.25 $ 1,979.27 $ 3,795.51
EQ/Alliance Premier Growth $ 670.25 $ 1,331.19 $ 2,020.35 $ 3,874.74
EQ/Alliance Quality Bond $ 631.40 $ 1,215.49 $ 1,829.16 $ 3,502.78
EQ/Alliance Small Cap Growth $ 656.60 $ 1,290.64 $ 1,953.52 $ 3,745.66
EQ/Bernstein Diversified Value $ 644.00 $ 1,253.11 $ 1,891.50 $ 3,624.96
EQ/Calvert Socially Responsible $ 696.50 $ 1,408.85 $ 2,147.80 $ 4,118.16
EQ/Capital Guardian International $ 681.80 $ 1,365.41 $ 2,076.60 $ 3,982.62
EQ/Capital Guardian Research $ 646.10 $ 1,259.37 $ 1,901.86 $ 3,645.18
EQ/Capital Guardian U.S. Equity $ 646.10 $ 1,259.37 $ 1,901.86 $ 3,645.18
EQ/Emerging Markets Equity $ 733.25 $ 1,516.88 $ 2,323.92 $ 4,448.55
EQ/Equity 500 Index $ 603.05 $ 1,130.48 $ 1,687.70 $ 3,222.31
EQ/Evergreen Omega $ 665.00 $ 1,315.61 $ 1,994.69 $ 3,825.30
EQ/FI Mid Cap $ 652.40 $ 1,278.14 $ 1,932.89 $ 3,705.59
EQ/FI Small/Mid Cap Value $ 659.75 $ 1,300.01 $ 1,968.98 $ 3,775.60
EQ/J.P. Morgan Core Bond $ 625.10 $ 1,196.64 $ 1,797.87 $ 3,441.12
EQ/Janus Large Cap Growth $ 674.45 $ 1,343.64 $ 2,040.83 $ 3,914.11
EQ/Lazard Small Cap Value $ 659.75 $ 1,300.01 $ 1,968.98 $ 3,775.60
EQ/Marsico Focus $ 672.35 $ 1,337.42 $ 2,030.59 $ 3,894.44
EQ/Mercury Basic Value Equity $ 640.85 $ 1,243.72 $ 1,875.95 $ 3,594.56
EQ/Mercury International Value $ 676.55 $ 1,349.87 $ 2,051.06 $ 3,933.73
EQ/MFS Emerging Growth Companies $ 646.10 $ 1,259.37 $ 1,901.86 $ 3,645.18
EQ/MFS Investors Trust $ 645.05 $ 1,256.24 $ 1,896.68 $ 3,635.08
- -----------------------------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------------------
If you do not surrender your contract at the
end of the applicable time period
- -----------------------------------------------------------------------------------------------------------
1 year 3 years 5 years 10 years
- -----------------------------------------------------------------------------------------------------------
AXA PREMIER VIP TRUST:
- -----------------------------------------------------------------------------------------------------------
AXA Aggressive Allocation $ 965.31 $ 2,772.13 $ 4,425.58 $ 7,970.97
AXA Conservative Allocation $ 1,268.33 $ 3,531.52 $ 5,473.48 $ 9,206.50
AXA Conservative-Plus Allocation $ 757.15 $ 2,220.59 $ 3,618.72 $ 6,847.17
AXA Moderate Allocation $ 362.63 $ 1,106.38 $ 1,875.45 $ 3,914.69
AXA Moderate-Plus Allocation $ 535.79 $ 1,606.68 $ 2,676.65 $ 5,347.57
AXA Premier VIP Aggressive Equity $ 301.35 $ 925.02 $ 1,577.72 $ 3,345.55
AXA Premier VIP Core Bond $ 310.80 $ 953.13 $ 1,624.12 $ 3,435.56
AXA Premier VIP Health Care $ 396.90 $ 1,206.80 $ 2,038.65 $ 4,218.24
AXA Premier VIP High Yield $ 299.25 $ 918.76 $ 1,567.38 $ 3,325.43
AXA Premier VIP International Equity $ 407.40 $ 1,237.43 $ 2,088.19 $ 4,309.21
AXA Premier VIP Large Cap Core Equity $ 369.60 $ 1,126.85 $ 1,908.81 $ 3,977.23
AXA Premier VIP Large Cap Growth $ 360.15 $ 1,099.07 $ 1,863.53 $ 3,892.28
AXA Premier VIP Large Cap Value $ 360.15 $ 1,099.07 $ 1,863.53 $ 3,892.28
AXA Premier VIP Small/Mid Cap Growth $ 372.75 $ 1,136.10 $ 1,923.87 $ 4,005.38
AXA Premier VIP Small/Mid Cap Value $ 368.55 $ 1,123.76 $ 1,903.79 $ 3,967.83
AXA Premier VIP Technology $ 433.65 $ 1,313.72 $ 2,211.10 $ 4,532.52
- -----------------------------------------------------------------------------------------------------------
EQ ADVISORS TRUST:
- -----------------------------------------------------------------------------------------------------------
EQ/Alliance Common Stock $ 277.20 $ 852.93 $ 1,458.31 $ 3,111.71
EQ/Alliance Growth and Income $ 286.65 $ 881.18 $ 1,505.18 $ 3,203.87
EQ/Alliance Intermediate Government Securities $ 280.35 $ 862.35 $ 1,473.95 $ 3,142.53
EQ/Alliance International $ 311.85 $ 956.25 $ 1,629.27 $ 3,445.51
EQ/Alliance Premier Growth $ 320.25 $ 981.19 $ 1,670.35 $ 3,524.74
EQ/Alliance Quality Bond $ 281.40 $ 865.49 $ 1,479.16 $ 3,152.78
EQ/Alliance Small Cap Growth $ 306.60 $ 940.64 $ 1,603.52 $ 3,395.66
EQ/Bernstein Diversified Value $ 294.00 $ 903.11 $ 1,541.50 $ 3,274.96
EQ/Calvert Socially Responsible $ 346.50 $ 1,058.85 $ 1,797.80 $ 3,768.16
EQ/Capital Guardian International $ 331.80 $ 1,015.41 $ 1,726.60 $ 3,632.62
EQ/Capital Guardian Research $ 296.10 $ 909.37 $ 1,551.86 $ 3,295.18
EQ/Capital Guardian U.S. Equity $ 296.10 $ 909.37 $ 1,551.86 $ 3,295.18
EQ/Emerging Markets Equity $ 383.25 $ 1,166.88 $ 1,973.92 $ 4,098.55
EQ/Equity 500 Index $ 253.05 $ 780.48 $ 1,337.70 $ 2,872.31
EQ/Evergreen Omega $ 315.00 $ 965.61 $ 1,644.69 $ 3,475.30
EQ/FI Mid Cap $ 302.40 $ 928.14 $ 1,582.89 $ 3,355.59
EQ/FI Small/Mid Cap Value $ 309.75 $ 950.01 $ 1,618.98 $ 3,425.60
EQ/J.P. Morgan Core Bond $ 275.10 $ 846.64 $ 1,447.87 $ 3,091.12
EQ/Janus Large Cap Growth $ 324.45 $ 993.64 $ 1,690.83 $ 3,564.11
EQ/Lazard Small Cap Value $ 309.75 $ 950.01 $ 1,618.98 $ 3,425.60
EQ/Marsico Focus $ 322.35 $ 987.42 $ 1,680.59 $ 3,544.44
EQ/Mercury Basic Value Equity $ 290.85 $ 893.72 $ 1,525.95 $ 3,244.56
EQ/Mercury International Value $ 326.55 $ 999.87 $ 1,701.06 $ 3,583.73
EQ/MFS Emerging Growth Companies $ 296.10 $ 909.37 $ 1,551.86 $ 3,295.18
EQ/MFS Investors Trust $ 295.05 $ 906.24 $ 1,546.68 $ 3,285.08
- -----------------------------------------------------------------------------------------------------------
Fee table 15
- -----------------------------------------------------------------------------------------------------------
If you surrender your contract at the end of the
applicable time period
- -----------------------------------------------------------------------------------------------------------
1 year 3 years 5 years 10 years
- -----------------------------------------------------------------------------------------------------------
EQ ADVISORS TRUST:
- -----------------------------------------------------------------------------------------------------------
EQ/Money Market $ 961.45 $ 1,305.72 $ 1,679.79 $ 2,956.22
EQ/Putnam Growth & Income Value $ 994.00 $ 1,403.11 $ 1,841.50 $ 3,274.96
EQ/Putnam Voyager $ 1,002.40 $ 1,428.14 $ 1,882.89 $ 3,355.59
EQ/Small Company Index $ 983.50 $ 1,371.77 $ 1,789.57 $ 3,173.25
EQ/Technology $ 1,024.45 $ 1,493.64 $ 1,990.83 $ 3,564.11
- -----------------------------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------------------
If you annuitize at the end of the
applicable time period
- -----------------------------------------------------------------------------------------------------------
1 year 3 years 5 years 10 years
- -----------------------------------------------------------------------------------------------------------
EQ ADVISORS TRUST:
- -----------------------------------------------------------------------------------------------------------
EQ/Money Market $ 611.45 $ 1,155.72 $ 1,729.79 $ 3,306.22
EQ/Putnam Growth & Income Value $ 644.00 $ 1,253.11 $ 1,891.50 $ 3,624.96
EQ/Putnam Voyager $ 652.40 $ 1,278.14 $ 1,932.89 $ 3,705.59
EQ/Small Company Index $ 633.50 $ 1,221.77 $ 1,839.57 $ 3,523.25
EQ/Technology $ 674.45 $ 1,343.64 $ 2,040.83 $ 3,914.11
- -----------------------------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------------------
If you do not surrender your contract at the
end of the applicable time period
- -----------------------------------------------------------------------------------------------------------
1 year 3 years 5 years 10 years
- -----------------------------------------------------------------------------------------------------------
EQ ADVISORS TRUST:
- -----------------------------------------------------------------------------------------------------------
EQ/Money Market $ 261.45 $ 805.72 $ 1,379.79 $ 2,956.22
EQ/Putnam Growth & Income Value $ 294.00 $ 903.11 $ 1,541.50 $ 3,274.96
EQ/Putnam Voyager $ 302.40 $ 928.14 $ 1,582.89 $ 3,355.59
EQ/Small Company Index $ 283.50 $ 871.77 $ 1,489.57 $ 3,173.25
EQ/Technology $ 324.45 $ 993.64 $ 1,690.83 $ 3,564.11
- -----------------------------------------------------------------------------------------------------------
16 Fee table
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 periods shown for each of the
variable investment options available as of December 31, 2003.
Fee table 17
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 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.
We may refuse to accept any contribution if the sum of all contributions under
all Equitable Accumulator(R) series contracts with the same annuitant would
then total more than $1,500,000. We reserve the right to limit aggregate
contributions made after the first contract year to 150% of first-year
contributions. 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. We may accept less than the minimum
initial contribution under a contract if an aggregate amount of contracts
purchased at the same time by an individual (including spouse) meets the
minimum.
- --------------------------------------------------------------------------------
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
Contract type issue ages contributions Source of contributions Limitations on contributions
- ----------------------------------------------------------------------------------------------------------------------------
NQ 0 through 83 o $5,000 (initial) o After-tax money. o No additional contributions
may be made after attain-
o $1,000 (additional) o Paid to us by check or ment of age 84, or, if later,
transfer of contract value in the first contract anniversary.
a tax-deferred exchange
under Section 1035 of the
Internal Revenue Code.
- ----------------------------------------------------------------------------------------------------------------------------
Rollover IRA 20 through 83 o $5,000 (initial) o Eligible rollover distribu- o No additional contributions
tions from TSA contracts or may be made after attain-
o $5,000 (initial) other 403(b) arrangements, ment of age 84, or, if later,
qualified plans, and govern- the first contract anniversary.
mental employer 457(b)
plans. o Contributions after age 70-1/2
must be net of required
o Rollovers from another minimum distributions.
traditional individual retire-
ment arrangement. o Although we accept regular
IRA contributions (limited to
o Direct custodian-to- $3,000 for 2004 and
custodian transfers from $4,000 for 2005) under
another traditional indi- rollover IRA contracts, we
vidual retirement intend that this contract be
arrangement. used primarily for rollover
and direct transfer
o Regular IRA contributions. contributions.
o Additional "catch-up" o Additional catch-up contri-
contributions. butions of up to $500 can
be made for the calendar
years 2004 or 2005 where
the owner is at least age 50
but under age 70-1/2 at any
time during the calendar
year for which the contribu-
tion is made.
- ----------------------------------------------------------------------------------------------------------------------------
18 Contract features and benefits
- ----------------------------------------------------------------------------------------------------------------------------
Available
for annuitant Minimum
Contract type issue ages contributions Source of contributions Limitations on contributions
- ----------------------------------------------------------------------------------------------------------------------------
Roth Conversion 20 through 83 o $5,000 (initial) o Rollovers from another o No additional contributions
IRA Roth IRA. may be made after attain-
o $50 (additional) ment of age 84, or, if later,
o Conversion rollovers from a the first contract anniversary.
traditional IRA.
o Conversion rollovers after
o Direct transfers from age 70-1/2 must be net of
another Roth IRA. required minimum distribu-
tions for the traditional IRA
o Regular Roth IRA you are rolling over.
contributions.
o You cannot roll over funds
o Additional catch-up contri- from a traditional IRA if your
butions. adjusted gross income is
$100,000 or more.
o Although we accept regular
Roth IRA contributions (lim-
ited to $3,000 for 2004 and
$4,000 for 2005) under
Roth IRA contracts, we
intend that this contract be
used primarily for rollover
and direct transfer
contributions.
o Additional catch-up contri-
butions of up to $500 can
be made for the calendar
year 2004 or 2005 where
the owner is at least age 50
at any time during the calen-
dar year for which the
contribution is made.
- ----------------------------------------------------------------------------------------------------------------------------
Rollover TSA 20 through 83 o $5,000 (initial) o Direct transfers of pre-tax o No additional contributions
funds from another contract may be made after attain-
o $1,000 (additional) or arrangement under Sec- ment of age 84, or, if later,
tion 403(b) of the Internal the first contract anniversary.
Revenue Code, complying
with IRS Revenue Ruling o Rollover or direct transfer
90-24. contributions after age 70-1/2
must be net of any required
o Eligible rollover distribu- minimum distributions.
tions of pre-tax funds from
other 403(b) plans, quali- o We do not accept employer-
fied plans. Subsequent remitted contributions.
contributions may also be
rollovers from, governmen-
tal employer 457(b) plans
and Traditional IRAs.
- ----------------------------------------------------------------------------------------------------------------------------
Contract features and benefits 19
- ----------------------------------------------------------------------------------------------------------------------------
Available
for annuitant Minimum
Contract type issue ages contributions Source of contributions Limitations on contributions
- ----------------------------------------------------------------------------------------------------------------------------
QP 20 through 75 o $5,000 (initial) o Only transfer contributions o We do not accept regular
o $1,000 (additional) from an existing defined ongoing payroll
contribution qualified plan contributions.
trust.
o Only one additional transfer
o The plan must be qualified contribution may be made
under Section 401(a) of the during a contract year.
Internal Revenue Code.
o No additional transfer con-
o For 401(k) plans, trans- tributions may be made after
ferred contributions may attainment of age 76, or, if
only include employee pre- later, the first contract
tax contributions. anniversary.
o Contributions after age 70-1/2
must be net of any required
minimum distributions.
o A separate QP contract must
be established for each plan
participant.
o We do not accept employer
remitted contributions.
o We do not accept contribu-
tions from defined benefit
plans.
See Appendix II at the end of this Prospectus for a discussion of purchase considerations of QP contracts.
- ----------------------------------------------------------------------------------------------------------------------------
See "Tax information" later in this Prospectus and in the SAI for a more
detailed discussion of sources of contributions and certain contribution
limitations.
For information on when contributions are credited under your contract see
"Dates and prices at which contract events occur" in "More information" later
in this Prospectus.
20 Contract features and benefits
OWNER AND ANNUITANT REQUIREMENTS
Under NQ contracts, the annuitant can be different from 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. In general, we
will not permit a contract to be owned by a minor unless it is pursuant to the
Uniform Gift to Minors Act or the Uniform Transfers to Minors Act in your
state.
Under all IRA and Rollover TSA contracts, the owner and annuitant must be the
same person. In some cases, an IRA contract may be held in a custodial
individual retirement account for the benefit of the individual annuitant.
Under QP contracts, the owner must be the trustee of the qualified plan and the
annuitant must be the plan participant/employee. See Appendix II at the end of
this Prospectus for more information on QP contracts.
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A "participant" is an individual who is currently, or was formerly,
participating in an eligible employer's qualified plan or TSA plan.
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HOW YOU CAN MAKE YOUR CONTRIBUTIONS
Except as noted below, contributions must be 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.
For your convenience, we will accept initial and additional contributions by
wire transmittal from certain broker-dealers who have agreements with us for
this purpose, including circumstances under which such contributions are
considered received by us when your order is taken by such broker-dealers.
Additional contributions may also be made under our automatic investment
program. These methods of payment are 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 payments. 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.
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Our "business day" is generally any day the New York Stock Exchange is open for
trading and generally ends at 4:00 p.m. Eastern Time. A business day does not
include a 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 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/Money Market variable investment
option. Listed below are the currently available portfolios, their investment
objectives and their advisers.
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You can choose from among the variable investment options and the fixed
maturity options.
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Contract features and benefits 21
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 the Accumulator(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.
Equitable Life serves as the investment manager of the Portfolios of the EQ
Advisors Trust and the AXA Premier VIP Trust. 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. The advisers for these Portfolios, listed in the chart below, are
those who make the investment decisions for each Portfolio.
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AXA Premier VIP Trust
Portfolio Name Objective Adviser(s)
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AXA AGGRESSIVE ALLOCATION Seeks long-term capital appreciation. o Equitable Life
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AXA CONSERVATIVE ALLOCATION Seeks a high level of current income. o Equitable Life
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AXA CONSERVATIVE-PLUS Seeks current income and growth of capital, with a o Equitable Life
ALLOCATION greater emphasis on current income.
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AXA MODERATE ALLOCATION Seeks long-term capital appreciation and current income. o Equitable Life
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AXA MODERATE-PLUS Seeks long-term capital appreciation and current income, o Equitable Life
ALLOCATION with a greater emphasis on capital appreciation.
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AXA PREMIER VIP AGGRESSIVE Seeks long-term growth of capital. o Alliance Capital Management L.P.
EQUITY
o MFS Investment Management
o Marsico Capital Management, LLC
o Provident Investment Counsel, Inc.
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AXA PREMIER VIP CORE BOND Seeks a balance of high current income and capital o BlackRock Advisors, Inc.
appreciation, consistent with a prudent level of risk.
o Pacific Investment Management Company LLC
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AXA PREMIER VIP HEALTH CARE Seeks long-term growth of capital. o A I M Capital Management, Inc.
o RCM Capital Management LLC
o Wellington Management Company, LLP
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AXA PREMIER VIP HIGH YIELD Seeks high total return through a combination of current o Alliance Capital Management L.P.
income and capital appreciation.
o Pacific Investment Management Company LLC
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AXA PREMIER VIP Seeks long-term growth of capital. o Alliance Capital Management L.P.,
INTERNATIONAL EQUITY through its Bernstein Investment
Research and Management Unit
o Bank of Ireland Asset Management
(U.S.) Limited
o Marsico Capital Management, LLC
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AXA PREMIER VIP LARGE CAP Seeks long-term growth of capital. o Alliance Capital Management L.P.,
CORE EQUITY through its Bernstein Investment
Research and Management Unit
o Janus Capital Management LLC
o Thornburg Investment Management, Inc.
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22 Contract features and benefits
Portfolios of the Trusts (contined)
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AXA Premier VIP Trust
Portfolio Name Objective Adviser(s)
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AXA PREMIER VIP LARGE CAP Seeks long-term growth of capital. o Alliance Capital Management L.P.
GROWTH
o RCM Capital Management LLC
o TCW Investment Management Company
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AXA PREMIER VIP LARGE CAP Seeks long-term growth of capital. o Alliance Capital Management L.P.
VALUE
o Institutional Capital Corporation
o MFS Investment Management
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AXA PREMIER VIP SMALL/MID Seeks long-term growth of capital. o Alliance Capital Management L.P.
CAP GROWTH
o Franklin Advisers, Inc.
o Provident Investment Counsel, Inc.
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AXA PREMIER VIP SMALL/MID Seeks long-term growth of capital. o AXA Rosenberg Investment Management LLC
CAP VALUE
o TCW Investment Management Company
o Wellington Management Company, LLP
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AXA PREMIER VIP TECHNOLOGY Seeks long-term growth of capital. o Firsthand Capital Management, Inc.
o RCM Capital Management LLC
o Wellington Management Company, LLP
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EQ Advisors Trust
Portfolio Name Objective Adviser(s)
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EQ/ALLIANCE COMMON STOCK Seeks to achieve long-term growth of capital. o Alliance Capital Management L.P.
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EQ/ALLIANCE GROWTH AND Seeks to provide a high total return. o Alliance Capital Management L.P.
INCOME
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EQ/ALLIANCE INTERMEDIATE Seeks to achieve high current income consistent with o Alliance Capital Management L.P.
GOVERNMENT SECURITIES relative stability of principal.
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EQ/ALLIANCE INTERNATIONAL Seeks to achieve long-term growth of capital. o Alliance Capital Management L.P.
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EQ/ALLIANCE PREMIER GROWTH Seeks to achieve long-term growth of capital. o Alliance Capital Management L.P.
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EQ/ALLIANCE QUALITY BOND Seeks to achieve high current income consistent with o Alliance Capital Management L.P.
moderate risk to capital.
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EQ/ALLIANCE SMALL CAP Seeks to achieve long-term growth of capital. o Alliance Capital Management L.P.
GROWTH
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EQ/BERNSTEIN DIVERSIFIED VALUE Seeks capital appreciation. o Alliance Capital Management L.P.,
through its Bernstein Investment Research
and Management Unit
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EQ/CALVERT SOCIALLY Seeks long-term capital appreciation. o Calvert Asset Management Company, Inc.
RESPONSIBLE and Brown Capital Management, Inc.
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EQ/CAPITAL GUARDIAN To achieve long-term growth of capital. o Capital Guardian Trust Company
INTERNATIONAL
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EQ/CAPITAL GUARDIAN Seeks to achieve long-term growth of capital. o Capital Guardian Trust Company
RESEARCH
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EQ/CAPITAL GUARDIAN U.S. Seeks to achieve long-term growth of capital. o Capital Guardian Trust Company
EQUITY
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Contract features and benefits 23
Portfolios of the Trusts (contined)
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EQ Advisors Trust
Portfolio Name Objective Adviser(s)
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EQ/EMERGING MARKETS EQUITY Seeks long-term capital appreciation. o Morgan Stanley Investment Management,
Inc.
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EQ/EQUITY 500 INDEX Seeks a total return before expenses that approximates o 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.
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EQ/EVERGREEN OMEGA Seeks long-term capital growth. o Evergreen Investment Management
Company, LLC
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EQ/FI MID CAP Seeks long-term growth of capital. o Fidelity Management & Research Company
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EQ/FI SMALL/MID CAP VALUE Seeks long-term capital appreciation. o Fidelity Management & Research Company
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EQ/J.P. MORGAN CORE BOND Seeks to provide a high total return consistent with mod- o J.P. Morgan Investment Management Inc.
erate risk to capital and maintenance of liquidity.
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EQ/JANUS LARGE CAP GROWTH Seeks long-term growth of capital. o Janus Capital Management LLC
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EQ/LAZARD SMALL CAP VALUE Seeks capital appreciation. o Lazard Asset Management, LLC
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EQ/MARSICO FOCUS Seeks long-term growth of capital. o Marsico Capital Management, LLC
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EQ/MERCURY BASIC VALUE Seeks capital appreciation and secondarily, income. o Mercury Advisors
EQUITY
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EQ/MERCURY INTERNATIONAL Seeks capital appreciation. o Merrill Lynch Investment Managers
VALUE International Limited
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EQ/MFS EMERGING GROWTH Seeks to provide long-term capital growth. o MFS Investment Management
COMPANIES
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EQ/MFS INVESTORS TRUST Seeks long-term growth of capital with secondary objec- o MFS Investment Management
tive to seek reasonable current income.
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EQ/MONEY MARKET Seeks to obtain a high level of current income, preserve o Alliance Capital Management L.P.
its assets and maintain liquidity.
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EQ/PUTNAM GROWTH & INCOME Seeks capital growth. Current income is a secondary o Putnam Investment Management, LLC
VALUE objective.
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EQ/PUTNAM VOYAGER Seeks long-term growth of capital and any increased o Putnam Investment Management, LLC
income that results from this growth.
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EQ/SMALL COMPANY INDEX Seeks to replicate as closely as possible (before the o Alliance Capital Management L.P.
deduction of portfolio expenses) the total return of the
Russell 2000 Index.
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EQ/TECHNOLOGY Seeks to achieve long-term growth of capital. o Firsthand Capital Management, Inc.
o RCM Capital Management LLC
o Wellington Management Company, LLP
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You should consider the investment objectives, risks and charges and expenses
of the Portfolios carefully before investing. The prospectuses for the Trusts
contain this and other important information about the Portfolios. The
prospectuses should be read carefully before investing. In order to obtain
copies of Trust prospectuses that do not accompany this Prospectus, you may
call one of our customer service representatives at 1-800-789-7771.
24 Contract features and benefits
FIXED MATURITY OPTIONS
We offer fixed maturity options with maturity dates ranging from one to ten
years. We will not accept allocations to a fixed maturity option if on the date
the contribution or transfer is to be applied: (i) the fixed maturity option's
maturity date is within the current calendar year; or (ii) the rate to maturity
is 3%. This means that at points in time there may be no fixed maturity options
available. You can allocate your contributions to one or more of these fixed
maturity options. These amounts become part of a non-unitized Separate Account.
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 all states. Check with your financial professional to see if
fixed maturity options are available in your state.
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Fixed maturity options generally range from one to ten years to maturity.
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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.
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 amounts 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 February 15th for each of the maturity years 2005 through
2014. Not all of these fixed maturity options will be available for annuitant
ages 76 and older. 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.
YOUR CHOICES AT THE MATURITY DATE. We will notify you on or before December
31st of the year 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 next
available fixed maturity option with the earliest maturity date. As of February
13, 2004 the next available maturity date was February 15, 2010.
MARKET VALUE ADJUSTMENT. If you make any withdrawals (including transfers,
surrender 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 III 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 three ways to allocate your contributions under your
contract: self-directed, principal assurance or dollar cost averaging.
SELF-DIRECTED ALLOCATION
You may allocate your contributions to one or more, or all, of the variable
investment options and fixed maturity options. Allocations must be in whole
percentages and you may change your allocations at any time. The total of your
allocations must equal 100%. If the annuitant is age 76 or older, you may
allocate contributions to fixed maturity options if their maturities are five
years or less. Also, you may not allocate amounts to fixed maturity options
with maturity dates that are later than the February 15th immediately following
the date annuity payments are to begin.
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 7 years from your contract date. If you make any withdrawals or
transfers from the fixed maturity option before the option's maturity date, the
amount in the fixed maturity option will be adjusted and may no longer grow to
equal your initial contribution under the principal assurance allocation.
Contract features and benefits 25
Principal assurance will not be available if none of those maturity dates is
available. 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 13, 2004
you chose the fixed maturity option with a maturity date of February 15, 2014,
since the rate to maturity was 4.15% on February 13, 2004, we would have
allocated $6,655 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 anticipate taking required minimum
distributions, you should consider whether your values in the variable
investment options are sufficient to meet your required minimum distributions.
See "Tax information" later in this Prospectus and in the SAI.
You may not elect principal assurance if the 12 month dollar cost averaging
program is in effect.
DOLLAR COST AVERAGING
We offer two dollar cost averaging programs. You may only participate in one
program at a time. Each program 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 value is low and fewer units if the unit
value is high. Therefore, you may get a lower average cost per unit over the
long term. These plans of investing, however, do not guarantee that you will
earn a profit or be protected against losses. You may not make transfers to the
fixed maturity options.
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Units measure your value in each variable investment option.
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12 MONTH DOLLAR COST AVERAGING PROGRAM. You may dollar cost average from the
EQ/Money Market option into any of the other variable investment options. You
may elect to participate in the 12 month dollar cost averaging program at any
time subject to the age limitation on contributions described in Section 1 of
this Prospectus. Contributions into the account for 12 month dollar cost
averaging may not be transfers from other investment options. You must allocate
your entire initial contribution into the EQ/Money Market option if you are
selecting the 12 month dollar cost averaging program at application to purchase
an Accumulator(R) contract; thereafter initial allocations to any new 12 month
dollar cost averaging program time period must be at least $2,000 and any
subsequent contribution to that same time period must be at least $250. You may
only have one time period in effect at any time. We will transfer your value in
the EQ/Money Market option into the other variable investment options that you
select over the next 12 months or such other period we may offer. Once the time
period then in effect has run, you may then select to participate in the dollar
cost averaging program for an additional time period. At that time, you may
also select a different allocation for transfers to the variable investment
options, or, if you wish, we will continue to use the selection that you have
previously made.
Currently, the transfer date will be the same day of the month as the contract
date, but not later than the 28th. For a 12 month dollar cost averaging program
selected after application, the first transfer date and each subsequent
transfer date for the time period selected will be one month from the date the
first contribution is made into the 12 month dollar cost averaging program, but
not later than the 28th of the month. All amounts will be transferred out by
the end of the time period then in effect. Under this program we will not
deduct the mortality and expense risks, administrative, and distribution
charges from assets in the EQ/Money Market option.
You may not transfer amounts to the EQ/Money Market option established for this
program that are not part of the 12 month dollar cost averaging program. The
only amounts that should be transferred from the EQ/Money Market option are
your regularly scheduled transfers to the other variable investment options. If
you request to transfer or withdraw any other amounts from the EQ/Money Market
option, we will transfer all of the value that you have remaining in the
account for 12 month dollar cost averaging to the investment options according
to the allocation percentages we have on file for you. You may ask us to cancel
your participation at any time.
GENERAL DOLLAR COST AVERAGING PROGRAM. If your value in the EQ/Money Market
option is at least $5,000, you may choose, at any time, to have a specified
dollar amount or percentage of your value transferred from that option to the
other variable investment options. You can select to have transfers made on a
monthly, quarterly, or annual basis. The transfer date will be the same
calendar day of the month as the contract date, but not later than the 28th day
of the month. You can also specify the number of transfers or instruct us to
continue making the transfers until all amounts in the EQ/Money Market option
have been transferred out.
The minimum amount that we will transfer each time is $250. The maximum amount
we will transfer is equal to your value in the EQ/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/Money Market option is equal to
or less than the amount you have elected to have transferred, the entire amount
will be transferred. The general dollar cost averaging program will then end.
You may change the transfer amount once each contract year or cancel this
program at any time.
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You may not elect general dollar cost averaging or 12 month dollar cost
averaging if you are participating in the rebalancing program. See "Transfers
among investment options" later in this Prospectus. You may not elect the 12
month dollar cost averaging program if the principal assurance program is in
effect.
YOUR BENEFIT BASE
The benefit base is used to calculate both the guaranteed minimum income
benefit and the 5% roll up to age 80 guaranteed minimum death benefit. Your
benefit base is not an account value or a cash value. See "Our baseBUILDER
option" and "Guaranteed minimum death benefit" below. The benefit base is equal
to:
26 Contract features and benefits
o your initial contribution and any additional contributions to the contract;
plus
o daily interest; less
o a deduction that reflects any withdrawals you make (the amount of the
deduction is described under "How withdrawals affect your guaranteed
minimum income benefit and guaranteed minimum death benefit" in "Accessing
your money" later in this Prospectus); less
o a deduction for any withdrawal charge remaining when you exercise your
guaranteed minimum income benefit.
The effective annual interest rate credited to the benefit base is:
o 5% for the benefit base with respect to the variable investment options
(other than the AXA Premier VIP Core Bond, EQ/Alliance Intermediate
Government Securities, EQ/Money Market and EQ/Alliance Quality Bond
options) and the 12-Month dollar cost averaging; and
o 3% for the benefit base with respect to the AXA Premier VIP Core Bond,
EQ/Alliance Intermediate Government Securities, EQ/Money Market and
EQ/Alliance Quality Bond options, the fixed maturity options and the loan
reserve account under Rollover TSA (if applicable).
No interest is credited to the benefit base after the contract date anniversary
following the annuitant's 80th birthday.
ANNUITY PURCHASE FACTORS
Annuity purchase factors are the factors applied to determine your periodic
payments under the guaranteed minimum income benefit and annuity payout
options. The guaranteed minimum income benefit is discussed under "Our
baseBUILDER option" and annuity payout options are discussed under "Your
annuity payout options" in "Accessing your money" later in this Prospectus. The
guaranteed annuity purchase factors are those factors specified in your
contract. The current annuity purchase factors are those factors that are in
effect at any given time. Annuity purchase factors are based on interest rates,
mortality tables, frequency of payments, the form of annuity benefit and the
annuitant's (and any joint annuitant's) age and sex in certain instances.
OUR BASEBUILDER OPTION
The baseBUILDER option offers you a guaranteed minimum income benefit combined
with the guaranteed minimum death benefit available under the contract. For
Rollover IRA and Rollover TSA contracts where the annuitant is between ages 20
and 60 at contract issue, and where you elect the baseBUILDER option, we may
offer an additional guaranteed minimum death benefit of a 5% roll up to age 70.
The baseBUILDER benefit is available if the annuitant is between the ages of 20
and 75 at the time the contract is issued. There is an additional charge for
the baseBUILDER benefit which is described under "baseBUILDER benefit charge"
in "Charges and expenses" later in this Prospectus. If you are purchasing this
contract to fund a Charitable Remainder Trust, the guaranteed minimum income
benefit is generally not available. Subject to our rules, the baseBUILDER
option may be available for certain split-funded Charitable Remainder Trusts.
The guaranteed minimum income benefit component of the baseBUILDER option is
described below. Whether you elect the baseBUILDER option or not, the
guaranteed minimum death benefit is provided under the contract. The guaranteed
minimum death benefit is described under "Guaranteed minimum death benefit"
below in this section.
The guaranteed minimum income benefit guarantees you a minimum amount of
lifetime income under our Income Manager contract. Only a life with a period
certain Income Manager payout annuity contract is available. You choose whether
you want the option to be paid on a single or joint life basis at the time you
exercise the option. The maximum period certain available under the Income
Manager payout option is 10 years. This period may be shorter, depending on the
annuitant's age, as follows:
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Level Payments
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Period certain years
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Annuitant's
Age at exercise IRAs NQ
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60 to 75 10 10
76 9 10
77 8 10
78 7 10
79 7 10
80 7 10
81 7 9
82 7 8
83 7 7
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We may also make other forms of payout options available. For a description of
payout options, see "Your annuity payout options" in "Accessing your money"
later in this Prospectus.
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The guaranteed minimum income benefit, which is also known as a living benefit,
should be regarded as a safety net only. It provides income protection if you
elect an income payout while the annuitant is alive.
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When you exercise the guaranteed minimum income benefit, the annual lifetime
income that you will receive will be the greater of (i) your guaranteed minimum
income benefit which is calculated by applying your benefit base less any
outstanding loan plus accrued interest (applies to Rollover TSA only) at
guaranteed annuity purchase factors or (ii) the income provided by applying
your actual account value at our then current annuity purchase factors. The
benefit base is applied only to the baseBUILDER guaranteed purchase annuity
factors in your contract and not to any other guaranteed or current annuity
purchase rates. The amount of income you actually receive will be determined
when we receive your request to exercise the benefit.
When you elect to receive annual lifetime income, your contract will terminate
and you will receive a new contract for the annuity payout option. For a
discussion of when your payments will begin and end, see "Exercise of
guaranteed minimum income benefit" below.
Before you elect baseBUILDER, you should consider the fact that the guaranteed
minimum income benefit provides a form of insurance and is based on
conservative actuarial factors. The guaranteed annuity pur-
Contract features and benefits 27
chase factors we use to determine your Income Manager benefit under baseBUILDER
are more conservative than the guaranteed annuity purchase factors we use for
the Income Manager payout annuity option. This means that, assuming the same
amount is applied to purchase the benefit and that we use guaranteed annuity
purchase factors to compute the benefit, each periodic payment under the
baseBUILDER Income Manager will be smaller than each periodic payment under the
Income Manager payout annuity option. Therefore, even if your account value is
less than your benefit base, you may generate more income by applying your
account value to current annuity purchase factors. We will make this comparison
for you when the need arises.
ILLUSTRATIONS OF GUARANTEED MINIMUM INCOME BENEFIT. The table below
illustrates the guaranteed minimum income benefit amounts per $100,000 of
initial contribution, for a male annuitant age 60 (at issue) on the contract
date anniversaries indicated, using the guaranteed annuity purchase factors as
of the date of this Prospectus, assuming no additional contributions,
withdrawals or loans under Rollover TSA contracts, and assuming there were no
allocations to the AXA Premier VIP Core Bond, EQ/Alliance Intermediate
Government Securities, EQ/Money Market or EQ/Alliance Quality Bond options, or
the fixed maturity options.
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Guaranteed minimum
income benefit -- annual
Contract Date income payable for life with
Anniversary at exercise 10 year period certain
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7 $ 8,315
10 $10,341
15 $14,924
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EXERCISE OF GUARANTEED MINIMUM INCOME BENEFIT. On each contract date
anniversary that you are eligible to exercise the guaranteed minimum income
benefit, we will send you an eligibility notice illustrating how much income
could be provided as of the contract anniversary. You must notify us within 30
days following the contract date anniversary if you want to exercise the
guaranteed minimum income benefit. You must return your contract to us along
with any required information in order to exercise this benefit. You will begin
receiving annual payments one year after the annuity payout contract is issued.
You may choose to take a withdrawal prior to exercising the guaranteed minimum
income benefit, which will reduce your payments. You may not partially exercise
this benefit. See "Accessing your money" under "Withdrawing your account value"
later in this Prospectus. Payments end with the last payment before the
annuitant's (or joint annuitant's, if applicable) death.
You will be eligible to exercise the guaranteed minimum income benefit as
follows:
o If the annuitant was at least age 20 and no older than age 44 when the
contract was issued, you are eligible to exercise the guaranteed minimum
income benefit within 30 days following each contract date anniversary
beginning with the 15th contract date anniversary.
o If the annuitant was at least age 45 and no older than age 53 when the
contract was issued, you are eligible to exercise the guaranteed minimum
income benefit within 30 days following each contract date anniversary
after the annuitant is age 60.
o If the annuitant was at least age 54 and no older than age 75 when the
contract was issued, you are eligible to exercise the guaranteed minimum
income benefit within 30 days following each contract date anniversary
beginning with the 7th contract date anniversary.
Please note:
(i) the latest date you may exercise the guaranteed minimum income benefit is
the contract date anniversary following the annuitant's 83rd birthday;
(ii) if the annuitant was older than age 63 at the time an IRA, QP or Rollover
TSA contract was issued, the baseBUILDER may not be an appropriate feature
because the minimum distributions required by tax law must begin before
the guaranteed minimum income benefit can be exercised;
(iii) For QP and Rollover TSA contracts, if you are eligible to exercise your
guaranteed minimum income benefit, we will first roll over amounts in such
contract to a Rollover IRA contract. You will be the owner of the Rollover
IRA contract; and
(iv) For a successor owner/annuitant the earliest exercise date will be based
on the original contract date and the age of the successor owner/annuitant
as of the Processing Date successor owner/ annuitant takes effect.
Please see both "Termination of your contract" in "Determining your contract
value" and "How withdrawals affect your guaranteed minimum income benefit and
guaranteed minimum death benefit" in "Accessing you money" later in this
Prospectus for more information on these guaranteed benefits.
GUARANTEED MINIMUM DEATH BENEFIT
A guaranteed minimum death benefit is provided as part of the baseBUILDER
benefit. A guaranteed minimum death benefit is also provided under your
contract even if you do not elect baseBUILDER. In this case, the baseBUILDER
benefit charge does not apply.
GUARANTEED MINIMUM DEATH BENEFIT APPLICABLE FOR ANNUITANT AGES 0 THROUGH 79 AT
ISSUE OF NQ CONTRACTS; 20 THROUGH 79 AT ISSUE OF ROLLOVER IRA, ROTH CONVERSION
IRA AND ROLLOVER TSA CONTRACTS; AND 20 THROUGH 75 AT ISSUE OF QP CONTRACTS.
You must elect either: the "5% roll up to age 80" or the "annual ratchet to age
80" guaranteed minimum death benefit when you apply for a contract. Once you
have made your election, you may not change it.
5% ROLL UP TO AGE 80. This guaranteed minimum death benefit is equal to the
benefit base described earlier in "Your benefit base."
ANNUAL RATCHET TO AGE 80. On the contract date, your guaranteed minimum death
benefit equals your initial contribution. Then, on each contract date
anniversary, we will determine your guaranteed minimum death benefit by
comparing your current guaranteed minimum death benefit to your account value
on that contract date anniversary. If your account value is higher than your
guaranteed minimum death
28 Contract features and benefits
benefit, we will increase your guaranteed minimum death benefit to equal your
account value. On the other hand, if your account value on the contract date
anniversary is less than your guaranteed minimum death benefit, we will not
adjust your guaranteed minimum death benefit either up or down. If you make
additional contributions, we will increase your current guaranteed minimum
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 reduce your guaranteed minimum death benefit on the
date you take the withdrawal.
GUARANTEED MINIMUM DEATH BENEFIT APPLICABLE FOR ANNUITANT AGES 80 THROUGH 83 AT
ISSUE OF NQ, ROLLOVER IRA, ROTH CONVERSION IRA AND ROLLOVER TSA CONTRACTS.
On the contract date, your guaranteed minimum death benefit equals your initial
contribution. Thereafter, it will be increased by the dollar amount of any
additional contributions. We will reduce your guaranteed minimum death benefit
if you take any withdrawals.
----------------------------------
Please see both "Termination of your contract" in "Determining your contract
value" and "How withdrawals affect your guaranteed minimum income benefit and
guaranteed minimum death benefit" in "Accessing your money" later in this
Prospectus for information on these guaranteed benefits.
See Appendix IV at the end of this Prospectus for an example of how we
calculate the guaranteed minimum death benefit.
PROTECTION PLUS
Protection Plus provides an additional death benefit as described below. See
the appropriate part of "Tax information" later in this Prospectus for the
potential consequences of electing to purchase the Protection Plus feature in
an NQ or IRA contract.
If the annuitant is 69 or younger when we issue your contract (or if the
successor owner/annuitant is 69 or younger when he or she becomes the successor
owner/annuitant, the death benefit will be:
the greater of:
o the account value or
o any applicable guaranteed minimum death benefit
Increased by:
40% of the lesser of:
o the total net contributions or
o the death benefit less total net contributions
For purposes of calculating your Protection Plus benefit, the following
applies: (i) "Net contributions" are the total contributions made (or, if
applicable, the total amount that would otherwise have been paid as a death
benefit had the successor owner/annuitant election not been made plus any
subsequent contributions) reduced on a pro rata basis to reflect withdrawals
(including surrender charges and loans). Reduction on a pro rata basis means
that we calculate the percentage of the current account value that is being
withdrawn and we reduce net contributions by that percentage. For example, if
the account value is $30,000 and you withdraw $12,000, you have withdrawn 40%
of your account value. If the contributions aggregated $40,000 before the
withdrawal, it would be reduced by $16,000 ($40,000 x .40) and net
contributions after the withdrawal would be $24,000 ($40,000-$16,000); (ii)
"Death benefit" is equal to the greater of the account value as of the date we
receive satisfactory proof of death or any applicable guaranteed minimum death
benefit as of the date of death.
If the annuitant is age 70 through 75 when we issue your contract (or if the
successor owner/annuitant is between the ages of 70 and 75 when he or she
becomes the successor owner/annuitant and Protection Plus had been elected at
issue), the death benefit will be:
the greater of:
o the account value or
o any applicable guaranteed minimum death benefit
Increased by:
25% of the lesser of:
o the total net contributions (as described above) or
o the death benefit (as described above) less total net contributions
Protection Plus must be elected when the contract is first issued: neither the
owner nor the successor owner/annuitant can add it subsequently.
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 of the full amount of your contribution. To exercise this
cancellation right you must mail the contract, with a signed letter of
instruction electing this right, to our processing office within 10 days after
you receive it. If state law requires, this "free look" period may be longer.
We may require that you wait six months before you may 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 and in the SAI for
possible consequences of cancelling your contract.
In addition to the cancellation right described above, if you fully convert an
existing traditional IRA contract to a Roth Conversion IRA contract, you may
cancel your Roth Conversion IRA contract and return to a Rollover IRA contract.
Our processing office, or your financial professional, can provide you with the
cancellation instructions.
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 values you have in: (i) the variable
investment options; (ii) market adjusted amounts in the fixed maturity options;
and (iii) the loan reserve account (applies for Rollover TSA contracts only).
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 amount of any outstanding loan plus
accrued interest (applicable to Rollover TSA contracts only). Please see
"Surrendering 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.
The unit value for each variable investment option depends on the investment
performance of that option less daily charges for:
(i) mortality and expense risks;
(ii) administrative expenses; and
(iii) distribution charges.
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);
(iii) increased to reflect a transfer into, or decreased to reflect a transfer
out of, a variable investment option; or
(iv) increased or decreased to reflect a transfer of your loan amount from or
to the loan reserve account under a Rollover TSA contract.
In addition, when we deduct the baseBUILDER and/or Protection Plus benefit
charge, the number of units credited to your contract will be reduced. 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, provided
there have been no withdrawals or transfers.
TERMINATION OF YOUR CONTRACT
Your contract will terminate without value if your account value is
insufficient to pay any applicable charges when due. Your account value could
become insufficient due to withdrawals and/or poor market performance. Upon
such termination, you will lose any applicable guaranteed benefits.
30 Determining your contract's value
3. Transferring your money among investment options
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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 may not transfer to a fixed maturity option that matures in the current
calendar year or that has a rate to maturity of 3% or less.
o You may not transfer any amount to the 12-month dollar cost averaging
program.
o If the annuitant is 76 or older, you must limit your transfers to fixed
maturity options to those with maturities of five years or less. Also, the
maturity dates may be no later than the February 15th immediately following
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.
In addition, we reserve the right to restrict transfers among variable
investment options as described in your contract, including limitations on the
number, frequency, or dollar amount of transfers.
You may request a transfer in writing, by telephone using TOPS or through
EQAccess. You must send in all written transfer requests directly to our
processing office. Transfer requests should specify:
(1) the contract number,
(2) the dollar amounts or percentages of your current account value 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 Accumulator(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.
Frequent transfers, including market timing and other program trading
strategies, may be disruptive to the underlying portfolios in which the
variable investment options invest. Disruptive transfer activity may hurt the
long term performance of a portfolio by, for example, requiring it to maintain
larger amounts of cash or to liquidate portfolio holdings at a disadvantageous
time or price. We currently use the procedures described below to discourage
disruptive transfer activity in AXA Premier VIP Trust and EQ Advisors Trust.
You should understand, however, that these procedures are subject to the
following limitations: (1) they do not eliminate the possibility that
disruptive transfer activity, including market timing, will occur or that
portfolio performance will be affected by such activity; (2) the design of
these procedures involves inherently subjective judgments, which we and AXA
Premier VIP Trust and EQ Advisors Trust seek to make in a fair and reasonable
manner consistent with interests of all policy and contract owners. Certain
frequent transfer activities attempt to exploit inefficiencies in how portfolio
securities are valued. Please see the prospectuses for the underlying
portfolios for more information on how portfolio shares are priced.
If we determine that your transfer patterns are disruptive, 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. 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 reduce disruptive activity, we
monitor the frequency of transfers, including the size of transfers in relation
to portfolio assets, in each underlying portfolio. When a potentially
disruptive transfer into or out of a portfolio occurs on a day when the
portfolio's aggregate deposits or aggregate redemptions exceed our monitoring
threshold, we may take the actions described above to restrict availability of
voice, fax and automated transaction services. We currently apply such action
for the remaining life of each affected contract. We also currently provide a
letter to owners who have engaged in disruptive transfer activity of our
intention to restrict access to communication 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 potentially disruptive transfer
activity and our monitoring procedures and thresholds, as well as change our
procedures to restrict this activity.
Our ability to monitor potentially disruptive transfer activity is limited in
certain circumstances. Group annuity contracts may be owned by retirement plans
on whose behalf we provide transfer instructions on an omnibus (aggregate)
basis, which may mask the disruptive transfer activity of individual plan
participants, and/or interfere with our ability to restrict communication
services. Also, underlying portfolios that are not in AXA Premier VIP Trust or
EQ Advisors Trust may be available for investment through companies that may
have policies and procedures regarding disruptive transfer activity that are
different from ours. Please see the prospectuses for those underlying
portfolios for more information.
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
Transferring your money among investment options 31
(b) how often you want the rebalancing to occur (quarterly, semiannually or
annually on a contract year basis).
Rebalancing will occur on the same day of the month as the contract date. If a
contract is established after the 28th, rebalancing will occur on the first
business day of the month following the contract issue date.
While your rebalancing program is in effect, we will transfer amounts among the
variable investment options 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.
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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. 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; your rebalancing allocations will not be changed and the
rebalancing program will remain in effect unless you request that it be
canceled in writing. The rebalancing program will remain in effect unless you
request that it be canceled in writing.
You may not elect the rebalancing program if you are participating in the
general dollar cost averaging or 12 month dollar cost averaging program.
Rebalancing is not available for amounts you have allocated in the fixed
maturity options.
32 Transferring your money among investment options
4. Accessing your money
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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. If you withdraw more than 90% of a
contract's current cash value, we will treat it as a request to surrender the
contract for its cash value. See "Surrendering your contract to receive its
cash value" below. For the tax consequences of withdrawals, see "Tax
information" later in this Prospectus and in the SAI.
Please see "Termination of your contract" in "Determining your contract value"
earlier in this Prospectus and "How withdrawals affect your guaranteed minimum
income benefit and guaranteed minimum death benefit" below for more information
on how withdrawals affect your guaranteed benefits and could potentially cause
your contract to terminate.
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Method of withdrawal
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Lifetime
required
Substantially minimum
Contract Lump sum Systematic equal distribution
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NQ Yes Yes No No
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Rollover IRA Yes Yes Yes Yes
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Roth Conversion
IRA Yes Yes Yes No
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QP Yes No No Yes
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Rollover TSA* Yes Yes No Yes
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* For some Rollover TSA contracts, your ability to take withdrawals, loans or
surrender your contract may be limited. You must provide withdrawal
restriction information when you apply for a contract. See "Tax Sheltered
Annuity contracts (TSAs)" in "Tax information" later in this Prospectus and
in the SAI.
LUMP SUM WITHDRAWALS
(All contracts)
You may take lump sum withdrawals from your account value at any time.
(Rollover TSA contracts may have restrictions.) The minimum amount you may
withdraw is $300.
Lump sum withdrawals will be subject to a withdrawal charge if they exceed the
15% free withdrawal amount (see "15% free withdrawal amount" in "Charges and
expenses" later in this Prospectus). Under Rollover TSA contracts, if a loan is
outstanding, you may only take lump sum withdrawals as long as the cash value
remaining after any withdrawal equals at least 10% of the outstanding loan plus
accrued interest.
SYSTEMATIC WITHDRAWALS
(NQ, Rollover TSA and all IRA contracts)
You may take systematic withdrawals of a particular dollar amount or a
particular percentage of your account value. (Rollover TSA contracts may have
restrictions.)
You may take systematic withdrawals on a monthly, quarterly or annual basis as
long as the withdrawals do not exceed the following percentages of your account
value: 1.2% monthly, 3.6% quarterly and 15.0% annually. The minimum amount you
may take in each systematic withdrawal is $250. If the amount withdrawn would
be less than $250 on the date a withdrawal is to be taken, we will not make a
payment and we will terminate your systematic withdrawal election.
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, we
will make the withdrawals on the same calendar day of the month as the contract
date. You must wait at least 28 days after your contract is issued before your
systematic withdrawals can begin.
You may elect to take systematic withdrawals at any time. If you own an IRA
contract, you may elect this withdrawal method only if you are between ages
59-1/2 and 70-1/2.
You may change the payment frequency, the amount or the percentage of your
systematic withdrawals, once each contract year. However, you may not change
the amount or percentage in any contract year in which you have already taken a
lump sum withdrawal. You can cancel the systematic withdrawal option at any
time.
Systematic withdrawals are not subject to a withdrawal charge, except to the
extent that, when added to a lump sum withdrawal previously taken in the same
contract year, the systematic withdrawal exceeds the 15% free withdrawal
amount.
SUBSTANTIALLY EQUAL WITHDRAWALS
(All IRA contracts)
We offer our "substantially equal withdrawals option" to allow you to receive
distributions from your account value without triggering the 10% additional
federal income tax penalty, which normally applies to distributions made before
age 59-1/2. See "Tax information" later in this Prospectus and in the SAI. We
use one of the IRS-approved methods for doing this; this is not the exclusive
method of meeting this exception. After consultation with your tax adviser, you
may decide to use another method which would require you to compute amounts
yourself and request lump sum withdrawals. In such a case, a withdrawal charge
may apply. Once you begin to take substantially equal withdrawals, you should
not stop them or change the pattern of your withdrawals until after the later
of age 59-1/2 or five full years after the first withdrawal. If you stop or
change the withdrawals or take a lump sum withdrawal, you may be liable for the
10% federal tax penalty that would have otherwise been due on prior withdrawals
made under this option and for any interest on the delayed payment of the
penalty.
In accordance with IRS guidance, an individual who has elected to receive
substantially equal withdrawals may change, without penalty, from one of the
IRS-approved methods of calculating fixed payments to another IRS-approved
method (similar to the required minimum distribution rules) of calculating
payments which vary each year.
Accessing your money 33
You may elect to take substantially equal withdrawals at any time before age
59-1/2. 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. You may not elect to
receive the first payment in the same contract year in which you took a lump
sum withdrawal. We will calculate the amount of your substantially equal
withdrawals using the IRS-approved method we offer. The payments will be made
monthly, quarterly or annually as you select. These payments will continue
until we receive written notice from you to cancel this option or you take a
lump sum withdrawal. You may elect to start receiving substantially equal
withdrawals again, but the payments may not restart in the same contract year
in which you took a lump sum withdrawal. We will calculate the new withdrawal
amount.
Substantially equal withdrawals are not subject to a withdrawal charge.
LIFETIME REQUIRED MINIMUM DISTRIBUTION WITHDRAWALS
(Rollover IRA, QP and Rollover TSA contracts only -- See "Tax information"
later in this Prospectus and in the SAI.)
We offer the minimum distribution withdrawal option to help you meet 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 or in any later year. The
minimum amount we will pay out is $250. Currently, minimum distribution
withdrawal payments will be made annually. See "Required minimum distributions"
in "Tax information" later in this Prospectus and in the SAI for your specific
type of retirement arrangement.
Currently, we do not impose a withdrawal charge on minimum distribution
withdrawals if you are enrolled in our "automatic required minimum distribution
(RMD) service" except if when added to a lump sum withdrawal previously taken
in the same contract year, the minimum distribution withdrawal exceeds the 15%
free withdrawal amount.
Under Rollover TSA contracts, you may not elect minimum distribution
withdrawals if a loan is outstanding.
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For Rollover IRA and Rollover TSA contracts, 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).
- --------------------------------------------------------------------------------
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) first. A market value adjustment may apply to
withdrawals from the fixed maturity options.
HOW WITHDRAWALS AFFECT YOUR GUARANTEED MINIMUM INCOME BENEFIT AND GUARANTEED
MINIMUM DEATH BENEFIT
Withdrawals will reduce your guaranteed benefits on either a dollar-for-dollar
basis or on a pro rata basis as explained below:
INCOME BENEFIT AND DEATH BENEFIT
5% roll up to age 80 -- If you elect the 5% roll up to age 80 guaranteed
minimum death benefit, your benefit base will be reduced on a dollar-for-dollar
basis as long as the sum of your withdrawals in a contract year is 5% or less
of the benefit base on the most recent contract date anniversary. Once you take
a withdrawal that causes the sum of your withdrawals in a contract year to
exceed 5% of the benefit base on the most recent contract date anniversary,
that withdrawal and any subsequent withdrawals in that same contract year will
reduce your benefit base on a pro rata basis.
The timing of your withdrawals and whether they exceed the 5% threshold
described above can have a significant impact on your guaranteed minimum income
benefit or guaranteed minimum death benefit.
Annual ratchet to age 80 -- If you elect the annual ratchet to age 80
guaranteed minimum death benefit, each withdrawal will reduce your benefits on
a pro rata basis.
Annuitant issue ages 80 through 83 -- If your contract was issued when the
annuitant was between ages 80 and 83, each withdrawal will always reduce your
current guaranteed minimum death benefit on a pro rata basis.
----------------------------------
Reduction on a dollar-for-dollar basis means that your current benefit will be
reduced by the dollar amount of the withdrawal. 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 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 guaranteed minimum death benefit
was $40,000 before the withdrawal, it would be reduced by $16,000 ($40,000
x.40) and your new guaranteed minimum death benefit after the withdrawal would
be $24,000 ($40,000 - $16,000).
LOANS UNDER ROLLOVER TSA CONTRACTS
You may take loans from a Rollover TSA unless restricted by the employer who
provided the Rollover TSA funds. If you cannot take a loan, or cannot take a
loan without approval from the employer who provided the funds, we will have
this information in our records based on what you and the employer who provided
the funds told us when you purchased your contract. The employer must also tell
us whether special employer plan rules of the Employee Retirement Income
Security Act of 1974 ("ERISA") apply. We will not permit you to take a loan
while you are enrolled in our "automatic required minimum distribution (RMD)
service."
You should read the terms and conditions on our loan request form carefully
before taking out a loan. Under Rollover TSA contracts subject to ERISA, you
may only take a loan with the written consent of your spouse. Your contract
contains further details of the loan provision. Also, see "Tax information"
later in this Prospectus and in the SAI for general rules applicable to loans.
We will permit you to have only one loan outstanding at a time. The minimum
loan amount is $1,000. The maximum amount is $50,000 or, if less, 50% of your
account value, subject to any limits under the
34 Accessing your money
federal income tax rules. The term of a loan is five years. However, if you use
the loan to acquire your primary residence, the term is 10 years. The term may
not extend beyond the earliest of:
(1) the date annuity payments begin,
(2) the date the contract terminates, and
(3) the date a death benefit is paid (the outstanding loan will be deducted
from the death benefit amount).
A loan request under your Rollover TSA contract will be processed on the first
business day of the month following the date on which the properly completed
loan request form is received. Interest will accrue daily on your outstanding
loan at a rate we set. The loan interest rate will be equal to the Moody's
Corporate Bond Yield Averages for Baa bonds for the calendar month ending two
months before the first day of the calendar quarter in which the rate is
determined.
LOAN RESERVE ACCOUNT. On the date your loan is processed, we will transfer the
amount of your loan to the loan reserve account. Unless you specify otherwise,
we will subtract your loan 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 loan will be subtracted from
the fixed maturity options in order of the earliest maturity date(s) first. A
market value adjustment may apply.
We will credit interest to the amount in the loan reserve account at a rate of
2% lower than the loan interest rate that applies for the time your loan is
outstanding. On each contract date anniversary after the date the loan is
processed, we will transfer the amount of interest earned in the loan reserve
account to the variable investment options on a pro rata basis. When you make a
loan repayment, unless you specify otherwise, we will transfer the dollar
amount of the loan repaid from the loan reserve account to the investment
options according to the allocation percentages we have on our records.
SURRENDERING 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. (Rollover
TSA contracts may have restrictions.) 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.
For the tax consequences of surrenders, see "Tax information" later in this
Prospectus and in the SAI.
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, payment of a death benefit, payment of any amount you
withdraw (less any withdrawal charge) and, upon surrender, 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 value 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 10 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
Equitable Accumulator(R) offers you several choices of annuity payout options.
Some enable you to receive fixed annuity payments, which can be either level or
increasing, 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. In addition, if your are exercising your guaranteed minimum
income benefit under baseBUILDER, your choice of payout options are those that
are available under the baseBUILDER (see "Our baseBUILDER option" in "Contracts
features and benefits" earlier in this Prospectus).
- --------------------------------------------------------------------------------
Fixed annuity payout options Life annuity
Life annuity with period certain
Life annuity with refund certain
Period certain annuity
- --------------------------------------------------------------------------------
Variable Immediate Annuity Life annuity
payout options Life annuity with period certain
- --------------------------------------------------------------------------------
Income Manager payout options Life annuity with period certain
(available for annuitants age 83 Period certain annuity
or less at contract issue)
- --------------------------------------------------------------------------------
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. A life annuity with a
period certain is the form of annuity under the contract that you will
receive if you do not elect a differ-
Accessing your money 35
ent payout option. In this case, the period certain will be based on the
annuitant's age and will not exceed 10 years.
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 guaranteed 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 OPTIONS
With fixed annuities, we guarantee fixed annuity payments will be based either
on the tables of guaranteed annuity purchase factors in your contract or on our
then current annuity purchase factors, 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 Immediate annuities may be funded through your choice of available
variable investment options investing in portfolios of EQ/Advisors Trust and
AXA Premier VIP Trust. The contract also offers a fixed income annuity payout
option that can be elected in combination with the variable annuity payout
option. The amount of each variable income 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.
INCOME MANAGER PAYOUT OPTIONS
The Income Manager payout annuity contracts differ from the other payout
annuity contracts. The other payout annuity contracts may provide higher or
lower income levels but do not have all the features of the Income Manager
payout annuity contract. You may request an illustration of the Income Manager
payout annuity contract from your financial professional. Income Manager payout
options are described in a separate prospectus that is available from your
financial professional. Before you select an Income Manager payout option, you
should read the prospectus which contains important information that you should
know.
Income Manager NQ and IRA payout options provide guaranteed level payments. The
Income Manager (life annuity with period certain) also provides guaranteed
increasing payments (NQ contracts only). You may not elect an Income Manager
payout option without life contingencies unless withdrawal charges are no
longer in effect under your Equitable Accumulator(R).
For QP and Rollover TSA contracts, if you want to elect an Income Manager
payout option, we will first roll over amounts in such contract to a Rollover
IRA contract with the plan participant as owner.
You may choose to apply your account value of your Equitable Accumulator(R)
contract to an Income Manager payout annuity. In this case, we will consider
any amounts applied as a withdrawal from your Equitable Accumulator(R) and we
will deduct any applicable withdrawal charge. For the tax consequences of
withdrawals, see "Tax information" later in this Prospectus and in the SAI.
Depending upon your circumstances, an Income Manager contract may be purchased
on a tax-free basis. Please consult your tax adviser. The Income Manager payout
options are not available in all states.
If you purchase an Income Manager contract in connection with the exercise of
the baseBUILDER benefit option, different payout options may apply, as well as
other various differences. See "Our baseBUILDER option" in "Contract features
and benefits" earlier in this Prospectus, as well as the Income Manager
Prospectus.
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 Immediate 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 under
your Equitable Accumulator(R) is imposed if you select a period certain. If the
period certain is more than 5 years, then the withdrawal charge deducted will
not exceed 5% of the account value.
For the Income Manager life contingent payout options, no withdrawal charge is
imposed under the Equitable Accumulator(R). If the withdrawal charge that
otherwise would have been applied to your account value under your Equitable
Accumulator(R) is greater than 2% of the contributions that remain in your
contract at the time you purchase your payout option, the withdrawal charges
under the Income Manager will apply. The year in which your account value is
applied to the payout option will be "contract year 1."
36 Accessing your money
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. The contract owner and annuitant
must meet the issue age and payment requirements.
You can choose the date annuity payments begin but it may not be earlier than
thirteen months from the Equitable Accumulator(R) contract date. Except with
respect to the Income Manager annuity payout options, where payments are made
on the 15th day of each month, 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.
The amount of the annuity payments will depend on the amount applied to
purchase the annuity and the applicable annuity purchase factors, discussed
earlier.
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.
ANNUITY MATURITY DATE
Your contract has a maturity date by which you must either take a lump sum
withdrawal or select an annuity payout option. The maturity date is generally
the contract date anniversary that follows the annuitant's 90th birthday.
Before the last day 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: (i) transfers (if permitted in
the future) among the variable investment options if a Variable Immediate
Annuity payout option is selected; and (ii) withdrawals or contract surrender
if an Income Manager annuity payout option is chosen.
Accessing your money 37
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 An administrative charge
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 At the time you make certain withdrawals or surrender your contract -- a
withdrawal charge.
o A charge for baseBUILDER, if you elect this optional 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.
o A charge for Protection Plus, if you elect this optional benefit.
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" later in this Prospectus.
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.
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 guaranteed
minimum death benefit. The daily charge is equivalent to an annual rate of
1.10% 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 income 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. Lastly,
we assume a mortality risk to the extent that at the time of death, the
guaranteed minimum 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.
ADMINISTRATIVE CHARGE
We deduct a daily charge from the net assets in each variable investment
option. The charge, together with the annual administrative charge described
below, is to compensate us for administrative expenses under the contracts. The
daily charge is equivalent to an annual rate of 0.25% of the net assets in each
variable investment option.
WITHDRAWAL CHARGE
A withdrawal charge applies in two circumstances: (1) if you make one or more
withdrawals during a contract year that, in total, exceed the 15% free
withdrawal amount, described below, or (2) if you surrender your contract to
receive its cash value or apply your cash value to a non-life contingency
payout option.
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 your contract as withdrawn first. See "Tax
information" later in this Prospectus and in the SAI.
In order to give you the exact dollar amount of the withdrawal you request, we
deduct the amount of the withdrawal and 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 charge in proportion to the
amount of the withdrawal subtracted from each investment option. The withdrawal
charge helps cover our sales expenses.
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 beginning of each contract
year, or in the case of the first contract year, your initial contribution,
minus any other withdrawals made during the contract year. The 15% free
withdrawal amount does not apply if you surrender your contract except where
required by law.
For NQ contracts issued to a charitable remainder trust, the free withdrawal
amount will equal the greater of: (1) the current account value less
contributions that have not been withdrawn (earnings in the contract) and (2)
the 15% free withdrawal amount defined above.
38 Charges and expenses
DISABILITY, TERMINAL ILLNESS OR CONFINEMENT TO NURSING HOME. The withdrawal
charge 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, or U.S.
Virgin Islands) 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, if the conditions described in (i), (ii) and
(iii) above existed at the time a contribution was remitted or if the condition
began within 12 months of the 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.
BASEBUILDER BENEFIT CHARGE
If you elect the baseBUILDER, we deduct a charge annually from your account
value on each contract date anniversary until such time as you exercise the
guaranteed minimum income benefit, elect another annuity payout option, or the
contract date anniversary after the annuitant reaches age 83, whichever occurs
first. The charge is equal to 0.30% of the benefit base in effect on the
contract date anniversary for the 5% roll up to age 80. The annual benefit base
charge is 0.15% if the 5% roll up to age 70 is available and elected.
We will deduct this charge from your value in the variable investment options
on a pro rata basis. If there is not enough value in the variable investment
options, we will deduct all or a portion of the charge first, from the fixed
maturity options, in order of the earliest maturity date(s) first. A market
value adjustment may apply.
If your account value is insufficient to pay this charge, your contract will
terminate without value and you will lose any applicable guaranteed benefits.
Please see "Termination of your contract" in "Determining your contract value"
earlier in this Prospectus.
PROTECTION PLUS
If you elect Protection Plus, we deduct a charge annually from your account
value on each contract date anniversary for which it is in effect. The charge
is equal to 0.20% of the account value on each contract date anniversary. We
will deduct this charge from your value in the variable investment options on a
pro rata basis. If there is not enough value in the variable investment
options, we will deduct all or a portion of the charge from the fixed maturity
options in the order of the earliest maturity date(s) first. A market value
adjustment may apply.
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 jurisdiction and ranges from 0% to 3.5%.
VARIABLE IMMEDIATE ANNUITY PAYOUT OPTION ADMINISTRATIVE FEE
We deduct a fee of $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 Management fees ranging from 0.10% 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 prospectuses for the Trusts.
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 guaranteed minimum income
benefit and the guaranteed 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 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
Charges and expenses 39
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.
OTHER DISTRIBUTION ARRANGEMENTS
We may reduce or eliminate charges when sales are made in a manner that result
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 would be
unfairly discriminatory.
40 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.
Under jointly owned contracts, the surviving owner is considered the
beneficiary, and will take the place of any other beneficiary. You may be
limited as to the beneficiary you can designate in a Rollover TSA contract. In
a QP contract, the beneficiary must be the trustee. Where an NQ contract is
owned by a minor pursuant to the Uniform Gift to Minors Act or the Uniform
Transfers to Minors Act, the beneficiary must be the estate of the annuitant.
Where an IRA contract is owned in a custodial individual retirement account,
the custodian must be the beneficiary so that the custodian can reinvest or
distribute the death benefit as the beneficiary of the account desires.
The death benefit is equal to your account value (without adjustment for any
otherwise applicable negative market value adjustment) or, if greater, the
guaranteed minimum death benefit. The guaranteed minimum death benefit is part
of your contract, whether you select the baseBUILDER benefit or not. We
determine the amount of the death benefit (other than the guaranteed minimum
death benefit) and any amount applicable under the Protection Plus feature, 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. The amount of the guaranteed minimum death benefit
will be the guaranteed minimum death benefit as of the date of the annuitant's
death adjusted for any subsequent withdrawals (and any associated withdrawal
charges). Under Rollover TSA contracts we will deduct the amount of any
outstanding loan plus accrued interest from the amount of the 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, a
surviving spouse of the deceased owner/annuitant can choose to be treated as
the successor owner/annuitant and continue the contract. Only a spouse who is
the sole primary beneficiary can be a successor owner/annuitant. The successor
owner/annuitant feature is only available under NQ and individually owned IRA
contracts.
For individually owned 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.
When the owner is not the annuitant under an NQ contract and the owner dies
before annuity payments begin, the beneficiary named to receive the death
benefit upon the annuitant's death will become the successor owner. If you do
not want this beneficiary 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. The surviving
owner automatically takes the place of any other beneficiary designation.
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 any annuity payout
option chosen may not extend beyond the life expectancy of the beneficiary.
SUCCESSOR OWNER AND ANNUITANT
If you are both the contract owner and the annuitant, and your spouse is the
sole primary beneficiary or the joint owner, then your spouse may elect to
receive the death benefit or continue the contract as successor
owner/annuitant.
If your surviving spouse decides to continue the contract, then as of the date
we receive satisfactory proof of your death, any required
Payment of death benefit 41
instructions, information and forms necessary to effect the successor
owner/annuitant feature, we will increase the account value to equal your
guaranteed minimum death benefit as of the date of your death if such death
benefit is greater than such account value, plus any amount applicable under
the Protection Plus feature and adjusted for any subsequent withdrawals. 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 considered to be withdrawn
only after all other amounts have been withdrawn. In determining whether the
guaranteed minimum death benefit will continue to grow, we will use your
surviving spouse's age (as of the date we receive satisfactory proof of your
death, any required instructions and the information and forms necessary to
effect the successor owner/annuitant feature).
Where an IRA contract is owned in a custodial individual retirement account,
and your spouse is the sole beneficiary of the account, the custodian may
request that the spouse be substituted as annuitant after your death.
BENEFICIARY CONTINUATION OPTION
BENEFICIARY CONTINUATION OPTION FOR TRADITIONAL IRA AND ROTH IRA CONTRACTS
ONLY. This feature permits a designated individual, upon the contract owner's
death, to maintain the contract in the deceased contract owner's name and
receive distributions under the contract instead of receiving the death benefit
in a lump sum. The beneficiary continuation option must be elected by September
30th of the year following the calendar year of your death and before any other
inconsistent election is made. Beneficiaries who do not make a timely election
will not be eligible for this 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 applicable death
benefit if such death benefit is greater than such account value plus any
amount applicable under the Protection Plus feature and adjusted for any
subsequent withdrawals. Where an IRA contract is owned in a custodial
individual retirement account, the custodian may reinvest the death benefit in
an individual retirement annuity contract, using the account beneficiary as the
annuitant. Please speak with your financial professional for further
information.
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. For sole
spousal beneficiaries, payments may begin by December 31st of the calendar year
in which you would have reached age 70-1/2, if such time is later. For
traditional IRA contracts only, if you die before your Required Beginning Date
for Required Minimum Distributions, as discussed in the Statement of Additional
Information, the beneficiary may choose the "5-year rule" option instead of
annual payments over life expectancy. The 5-year rule is always available to
beneficiaries under Roth IRA contracts. If the beneficiary chooses this option,
the beneficiary may take withdrawals as desired, but the entire account value
must be fully withdrawn by December 31st of the calendar year which contains
the fifth anniversary of your death.
Under the beneficiary continuation option for IRA and Roth IRA
contracts:
o The contract continues in your name for the benefit of your beneficiary.
o This feature is only available if the beneficiary is an individual. Certain
trusts with only individual beneficiaries will be treated as individuals
for this purpose.
o If there is more than one beneficiary, each beneficiary's share will be
separately accounted for. It will be distributed over the beneficiary's own
life expectancy, if payments over life expectancy are chosen.
o The minimum amount that is required in order to elect the beneficiary
continuation option is $5,000 for each beneficiary.
o The beneficiary may make transfers among the investment options but no
additional contributions will be permitted.
o If you had elected the guaranteed minimum income benefit or Protection Plus
feature under the contract, they will no longer be in effect and charges
for such benefits will stop. Also, any guaranteed minimum death benefit
feature 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, if any, will apply.
o 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 required 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.
42 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 Equitable Accumulator(R) contracts owned by United
States individual taxpayers. The tax rules can differ, depending on the type of
contract, whether NQ, traditional IRA, Roth IRA, QP or TSA. 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
without notice. 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 or values under the contract, or payments under the contract, for
example, amounts due to beneficiaries, may be subject to federal or state gift,
estate, or inheritance 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 to be
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 which can be made to all types of tax-favored retirement plans.
In addition to increasing amounts which 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 adviser 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") and Code Section 403(b)
Arrangements ("TSAs"), respectively: an IRA or 403(b) annuity contract such as
this one, or an IRA or 403(b)(7) custodial or other qualified account. Annuity
contracts can also be purchased in connection with retirement 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. More information on IRAs and TSAs is provided
in the SAI. 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 Accumulator's(R) choice of death benefits and baseBUILDER
guaranteed minimum income benefit, 12 month Dollar Cost Averaging, selection of
investment funds 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 arrangements. You should be aware that
cost may vary depending on the features and benefits made available and the
charges and expenses of the investment options or funds that you elect.
Although certain provisions of the Temporary Regulations on required minimum
distributions concerning the actuarial value of additional contract benefits,
which could have increased the amount required to be distributed from annuity
contracts funding qualified plans, TSAs and IRAs have currently been suspended,
these or similar provisions may apply in future years. You may want to discuss
with your tax adviser the potential implication of these Regulations before you
purchase this annuity contract or purchase additional features under this
annuity contract. See also Appendix II at the end of this Prospectus for a
discussion of QP contracts.
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 the 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).
Tax information 43
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 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.
PROTECTION PLUS FEATURE
In order to enhance the amount of the death benefit to be paid at the
annuitant's death, you may purchase a Protection Plus rider for your NQ
contract. Although we regard this benefit as an investment protection feature
which is part of the contract and which should have no adverse tax effect, it
is possible that the IRS could take a contrary position or assert that the
Protection Plus rider is not part of the contract. In such a case the charges
for the Protection Plus rider could be treated for federal income tax purposes
as a partial withdrawal from the contract. If this were so, such a deemed
withdrawal could be taxable and, for contract owners under age 59-1/2, also
subject to a tax penalty. Were the IRS to take this position, Equitable would
take all reasonable steps to attempt to avoid this result, which would include
amending the contract (with appropriate notice to you).
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
Equitable Accumulator(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 Equitable Accumulator(R) NQ contract.
An owner may 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, in accordance with IRS formulas.
INVESTOR CONTROL ISSUES
Under certain circumstances, the IRS has stated that you could be treated as
the owner (for tax purposes) of the assets of Separate Accounts 45 and 49. If
you were treated as the owner, you would be taxable on income and gains
attributable to the shares of the underlying portfolios.
The circumstances that would lead to this tax treatment would be that, in the
opinion of the IRS, you could control the underlying investment of Separate
Accounts 45 and 49. Recently, the IRS has said that the owners of variable
annuities will not be treated as owning the separate account assets provided
the underlying portfolios are restricted to variable life and annuity assets.
The variable annuity owners must have the right only to choose among the
portfolios, and must have no right to direct the particular investment
decisions within the portfolios.
44 Tax information
Although we believe that, under current IRS guidance, you would not be treated
as the owner of the assets of Separate Accounts 45 and 49, there are some
issues that remain unclear. For example, the IRS has not issued any guidance as
to whether having a larger number of portfolios available, or an unlimited
right to transfer among them, could cause you to be treated as the owner. We do
not know whether the IRS will ever provide such guidance or whether such
guidance, if unfavorable, would apply retroactively to your contract.
Furthermore, the IRS could reverse its current guidance at any time. We reserve
the right to modify your contract as necessary to prevent you from being
treated as the owner of the assets of Separate Accounts 45 and 49.
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 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; and
o Roth IRAs, 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 (http://www.irs.gov).
Equitable Life designs its IRA contracts to qualify as individual retirement
annuities under Section 408(b) of the Internal Revenue Code. You may purchase
the contract as a traditional IRA or Roth IRA. The traditional IRA we offer is
the Rollover IRA. The Roth IRA contract available is the Roth Conversion IRA.
The SAI contains the information that the IRS requires you to have before you
purchase an IRA. The disclosure generally assumes direct ownership of the
individual retirement annuity contract. For contracts owned in a custodial
individual retirement account, the disclosure will apply only if you terminate
your account or transfer ownership of the contract to yourself.
We have received an opinion letter from the IRS approving the respective forms
of the Equitable Accumulator(R) traditional and Roth IRA contracts, as amended
to reflect recent tax law changes, 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 contracts submitted for IRS approval do not include every
feature possibly available under the Equitable Accumulator (R) traditional and
Roth IRA contracts.
PROTECTION PLUS(SM) FEATURE
The Protection Plus feature is offered for IRA contracts, subject to state and
contract availability. We have received IRS opinion letters that the contract
with a Protection Plus feature qualifies 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 contracts submitted for IRS approval do not
include every feature possibly available under the Equitable Accumulator(R)
traditional and Roth IRA contracts. You should discuss with your tax adviser
whether you should consider purchasing an Accumulator(R) IRA or Accumulator(R)
Roth IRA with the optional Protection Plus feature.
CONTRIBUTIONS
Individuals may make three different types of contributions to an 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 IRAs of the same type
("direct transfers").
In addition, an individual may make a taxable rollover contribution from a
traditional IRA to a Roth IRA ("conversion" contributions).
Contributions to all types of IRAs are compensation-based. They are either made
from your current compensation or have a connection with past compensation (for
example, rollover contributions from an eligible retirement plan that you had
with an employer relate to past compensation). Under certain circumstances,
your nonworking spouse, former spouse or surviving spouse may contribute to an
IRA. You can make regular contributions for any year to a traditional IRA
within fed-
Tax information 45
eral tax law limits up until the calendar year you reach the age 70-1/2. Regular
contributions for any year to a Roth IRA can be made at any time during your
life, subject to federal tax law limits.
The amount of contributions you may make to an IRA for any year and whether
such contributions are eligible for special tax treatment (for example,
deductibility from income or a special credit) may vary, depending on your
income, age and whether you participate in an employer-sponsored retirement
plan. Roth IRA contributions are not tax deductible. The maximum regular
contribution that can be made to all of your IRAs (whether traditional or Roth)
for the taxable year for which the contribution is made is $3,000 for 2004 and
$4,000 for 2005. The maximum regular contribution is increased to $3,500 for
2004 and $4,500 for 2005 if you are at least age 50 at any time during the
taxable year for which the contribution is made..
Rollover and transfer contributions are not subject to dollar limits. Rollover
contributions may be made to a traditional IRA from "eligible retirement plans"
which include other traditional IRAs, qualified plans, TSAs and governmental
employer 457(b) plans. For Roth IRAs, rollover contributions may be made from
other Roth IRAs and traditional IRAs. The conversion of a traditional IRA to a
Roth IRA is taxable. Direct transfer contributions may only be made directly
from one traditional IRA to another or from one Roth IRA to another.
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 adviser 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.
A more complete discussion of contributions to traditional IRAs and Roth IRAs
is contained in the SAI.
WITHDRAWALS AND DISTRIBUTIONS
You can withdraw any or all of your funds from an IRA at any time; you do not
need to wait for a special event like retirement. Earnings in IRAs are not
subject to federal income tax until amounts are paid to you or your
beneficiary. Withdrawals from an IRA, surrender of an IRA, death benefits from
an IRA and annuity payments from an IRA may be fully or partially taxable.
Withdrawals and distributions from IRAs are taxable as ordinary income (not
capital gain).
Payments from traditional IRAs and Roth IRAs are taxed differently. Payments
from traditional IRAs are generally fully taxable unless you have made
nondeductible regular contributions or rolled over after-tax contributions. In
any event, the issuer of the traditional IRA is entitled to report the
distribution as fully taxable and it is your responsibility to calculate the
taxable and tax-free portions of any traditional IRA payments on your own tax
returns.
Distributions from Roth IRAs generally receive return of contribution treatment
first under federal income tax calculation rules before any income is taxable.
Certain distributions from Roth IRAs may qualify for fully tax-free treatment.
These are distributions after you reach age 59-1/2, die, become disabled or meet
a qualified first-time homebuyer tax rule. You also have to meet a five-year
aging period.
A distribution from a traditional IRA will not be taxable if it is rolled over
to an eligible retirement plan. A distribution from a Roth IRA will not be
taxable if it is rolled over to another Roth IRA.
Taxable withdrawals or distributions from IRAs may be subject to an additional
10% penalty tax if you are under age 59-1/2, unless an exception applies.
Traditional IRAs are subject to required minimum distribution rules which
require that amounts begin to be distributed in a prescribed manner from the
IRA after the owner reaches age 70-1/2. These rules also require distributions
after the owner's death. No distributions are required to be made from Roth
IRAs until after the Roth IRA owner's death, but then the required minimum
distribution rules apply.
A more complete discussion of the tax aspects of withdrawals and distributions
from traditional IRAs and Roth IRAs is contained in the SAI.
SPECIAL RULES FOR CONTRACTS FUNDING QUALIFIED PLANS
For QP contracts, your plan administrator or trustee notifies you as to tax
consequences. See Appendix II at the end of this Prospectus.
TAX-SHELTERED ANNUITY CONTRACTS (TSAS)
GENERAL
This section of the prospectus covers some of the special tax rules that apply
to annuity contracts under Section 403(b) of the Internal Revenue Code (TSAs).
Generally, there are two types of funding vehicles available for 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.
CONTRIBUTIONS TO TSAS
There are two ways you can make contributions to this Equitable Accumulator(R)
Rollover TSA contract:
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.
If you make a direct transfer, you must fill out our transfer form.
ROLLOVER OR DIRECT TRANSFER CONTRIBUTIONS. You must establish your TSA with
funds that are directly transferred from another 403(b) arrangement or rolled
over from another 403(b) arrangement. You may make subsequent rollover
contributions to your Rollover TSA contract from these sources: qualified
plans, governmental employer
46 Tax information
457(b) plans, and traditional IRAs as well as other TSAs and 403(b)
arrangements. All rollover contributions must be pre-tax funds only with
appropriate documentation satisfactory to us.
You should discuss with your tax adviser 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.
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 Equitable Accumulator(R) contract receiving the funds has provisions at
least as restrictive as the source contract.
Before you transfer funds to an Equitable Accumulator(R) Rollover TSA contract,
you may have to obtain your employer's authorization or demonstrate that you do
not need employer authorization.
Contributions to TSAs are discussed in greater detail in the SAI.
DISTRIBUTIONS FROM 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. Your employer will tell us this when you establish the TSA through
a direct transfer.
You may also need spousal consent for certain transactions and payments.
WITHDRAWAL RESTRICTIONS. If this is a Revenue Ruling 90-24 direct transfer, we
will treat all amounts transferred to this contract and any future earnings on
the amount transferred as not eligible for withdrawal until one of the
following events happens:
o you are severed from employment with the employer which provided the funds
to purchase the TSA you are transferring to the Equitable Accumulator(R)
Rollover TSA; or
o you reach age 59-1/2; or
o you die; or
o you become disabled (special federal income tax definition); or
o you take a hardship withdrawal (special federal income tax definition).
The amount of funds subject to the withdrawal restrictions may depend on the
source of the funds used to establish the Accumulator(R) TSA.
TAX TREATMENT OF DISTRIBUTIONS. Amounts held under TSAs are generally not
subject to federal income tax until benefits are distributed. Distributions
include withdrawals from your TSA contract and annuity payments from your TSA
contract. Death benefits paid to a beneficiary are also taxable distributions.
Unless an exception applies, amounts distributed from TSAs are includable in
gross income as ordinary income. Distributions from TSAs may be subject to 20%
federal income tax withholding. See "Federal and state income tax withholding
and information reporting" below. In addition, TSA distributions may be subject
to additional tax penalties.
If you have made after-tax contributions, you will have a tax basis in your TSA
contract, which will be recovered tax-free. Since we currently do not accept
after-tax funds, we do not track your investment in the contract, if any. We
will report all distributions from this Rollover TSA as fully taxable. It is
your responsibility to determine how much of the distribution is taxable.
A penalty tax of 10% of the taxable portion of a distribution applies to
distributions from a TSA before you reach age 59-1/2 unless an exception
applies.
Distributions from TSAs are discussed in greater detail in the SAI.
LOANS FROM TSAS
Loans are generally not treated as a taxable distribution. You may take loans
from a TSA unless restricted by the employer (for example, under an employer
plan subject to ERISA). If you cannot take a loan, or cannot take a loan
without approval from the employer who provided the funds, we will have this
information in our records based on what you and the employer who provided the
TSA funds told us when you purchased your contract.
Loans from TSAs are discussed in greater detail in the SAI.
TAX-DEFERRED ROLLOVERS AND DIRECT TRANSFERS
You may roll over an "eligible rollover distribution" from a TSA into another
eligible retirement plan (a qualified plan, a governmental employer 457(b) plan
(separate accounting required), another TSA or a traditional IRA) which agrees
to accept the rollover.
A spousal beneficiary may also roll over death benefits or certain
divorce-related payments.
Direct transfers of TSA funds from one TSA to another under Revenue Ruling
90-24 are not distributions.
Rollovers from TSAs are discussed in greater detail in the SAI.
REQUIRED MINIMUM DISTRIBUTIONS
TSAs are subject to required minimum distribution rules beginning at age 70-1/2
or separation from service, if later. These rules are discussed in greater
detail in the SAI.
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.
Tax information 47
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 $17,280 in periodic annuity payments in
2004, 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), 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.
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 AND QUALIFIED PLAN DISTRIBUTIONS
Unless you have the distribution go directly to the new plan, eligible rollover
distributions from qualified plans and TSAs are subject to mandatory 20%
withholding. The plan administrator is responsible for withholding from
qualified plan distributions. An eligible rollover distribution from a TSA or a
qualified plan can be rolled over to another eligible retirement plan. All
distributions from a TSA 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 from service with the employer; 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
o substantially equal periodic payments made for a specified period of 10
years or more; or
o hardship withdrawals; 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.
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 No. 45 and Separate
Account No. 49 for taxes. We do not now, but may in the future set up reserves
for such taxes.
48 Tax information
8. More information
- --------------------------------------------------------------------------------
ABOUT SEPARATE ACCOUNT NO. 45 AND SEPARATE ACCOUNT NO. 49
Each variable investment option is a subaccount of Separate Account No. 45 and
in Separate Account No. 49. We established Separate Account No. 45 in 1994 and
Separate Account No. 49 in 1996 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 No. 45 and in Separate Account No. 49 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 Accounts' operations are accounted for without regard to Equitable
Life's other operations.
Each Separate Account 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 the Separate Accounts.
Each subaccount (variable investment option) within the Separate Accounts
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 either Separate Account, 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 each Separate Account 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 each Separate Account
or a variable investment option directly);
(5) to deregister the Separate Accounts under the Investment Company Act of
1940;
(6) to restrict or eliminate any voting rights as to the Separate Accounts; 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.
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 and other aspects
of its operations, appear in the prospectuses for each Trust, which are
attached at the end of this Prospectus, or in the 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.
FMO rates are determined daily. The rates in the table are illustrative only
and will most likely differ from the rates applicable at time of purchase.
Current FMO rates can be obtained from your financial professional.
The rates to maturity for new allocations as of February 13, 2004, and the
related price per $100 of maturity value were as shown below:
- --------------------------------------------------------------------------------
Fixed Maturity
Options with
February 15th Rate to Maturity Price
Maturity Date of as of Per $100 of
Maturity Year February 13, 2004 Maturity Value
- --------------------------------------------------------------------------------
2005 3.00%* $ 97.06
2006 3.00%* $ 94.24
2007 3.00%* $ 91.49
2008 3.00%* $ 88.83
2009 3.00%* $ 86.23
2010 3.07% $ 83.38
2011 3.43% $ 78.94
2012 3.72% $ 74.63
2013 3.95% $ 70.53
2014 4.15% $ 66.55
- --------------------------------------------------------------------------------
*Since these rates to maturity are 3%, no amounts could have been allocated to
these options.
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.
More information 49
(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) 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 0.25% 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 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
WIRE TRANSMITTALS AND ELECTRONIC APPLICATIONS
We accept initial and subsequent contributions sent by wire to our processing
office by agreement with certain broker-dealers. Such transmittals must be
accompanied by information we require to allocate your contribution. Wire
orders not accompanied by complete information may be retained as described
under "How you can make your contributions" in "Contract features and benefits"
earlier in this Prospectus.
50 More information
Even if we accept the wire order and essential information, a contract
generally will not be issued until we receive and accept a properly completed
application. In certain cases we may issue a contract based on information
provided through certain broker-dealers with which we have established
electronic facilities. In any such cases, you must sign our Acknowledgment of
Receipt form.
Where we require a signed application, the above procedures do not apply and no
financial transactions will be permitted until we receive the signed
application and have issued the contract. Where we issue a contract based on
information provided through electronic facilities, we require an
Acknowledgment of Receipt form, and financial transactions are only permitted
if you request them in writing, sign the request and have it signature
guaranteed, until we receive the signed Acknowledgment of Receipt form. After
your contract has been issued, additional contributions may be transmitted by
wire.
In general, the transaction date for electronic transmissions is the date on
which we receive at our regular processing office all required information and
the funds due for your contribution. We may also establish same-day electronic
processing facilities with a broker-dealer that has undertaken to pay
contribution amounts on behalf of its customers. In such cases, the transaction
date for properly processed orders is the business day on which the
broker-dealer inputs all required information into its electronic processing
system. You can contact us to find out more about such arrangements.
After your contract has been issued, additional contributions may be
transmitted by wire.
AUTOMATIC INVESTMENT PROGRAM -- FOR NQ CONTRACTS ONLY
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 contract on a monthly or quarterly basis. AIP is not available for
Rollover IRA, Roth Conversion IRA, QP or Rollover TSA contracts.
For NQ contracts, the minimum amounts we will deduct are $100 monthly and $300
quarterly. AIP additional contributions may be allocated to any of the variable
investment options and available fixed maturity options. 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.
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. on a business day, we will use the next business day.
o A loan request under your Rollover TSA contract will be processed on the
first business day of the month following the date on which the properly
completed loan request form is received.
o If your transaction is set to occur on the same day of the month as the
contract date and that date is the 29th, 30th or 31st of the month, then
the transaction will occur on the 1st day of the next month.
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 If we have entered into an agreement with your broker-dealer for automated
processing of contributions upon receipt of customer order, your
contribution will be considered received at the time your broker-dealer
receives your contribution and all information needed to process your
application, along with any required documents, and transmits your order to
us in accordance with our processing procedures. Such arrangements may
apply to initial contributions, subsequent contributions, or both, and may
be commenced or terminated at any time without prior notice. If required by
law, the "closing time" for such orders will be earlier than 4 p.m.,
Eastern Time.
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 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 a fixed maturity option will be based on the rate to maturity
in effect for that fixed maturity option on the business day of the
transfer.
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;
o the formal approval of independent auditors selected for each Trust; or
More information 51
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. Its 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 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 NO. 45 AND SEPARATE ACCOUNT NO. 49 VOTING RIGHTS
If actions relating to the Separate Accounts 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 No. 45 or Separate Account No. 49, our ability to meet
our obligations under the contracts or the distribution of the contracts.
ABOUT OUR INDEPENDENT AUDITORS
The consolidated financial statements of Equitable Life at December 31, 2003
and 2002, and for the three years ended December 31, 2003, incorporated in this
Prospectus by reference to the 2003 Annual Report on Form 10-K are incorporated
in reliance on the report of PricewaterhouseCoopers LLP, independent auditors,
given on the authority of said firm as experts in auditing and accounting.
FINANCIAL STATEMENTS
The financial statements of Separate Account No. 45 and Separate Account No.
49, as well as the consolidated financial statements of Equitable Life, are in
the applicable SAI. The SAI is available free of charge. You may request one by
writing to our processing office or calling 1-800-789-7771.
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
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
and in the SAI.
You cannot assign or transfer ownership of an IRA, QP or Rollover TSA contract
except by surrender to us. If your individual retirement annuity contract is
held in your custodial individual retirement account, you may only assign or
transfer ownership of such an IRA contract to yourself. Loans are not available
and you cannot assign IRA and QP contracts as security for a loan or other
obligation. If the employer that provided the funds does not restrict them,
loans are available under a Rollover TSA contract.
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 IRA, QP or Rollover TSA
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
The contracts are distributed by both AXA Advisors, LLC and AXA Distributors,
LLC. For this purpose, AXA Advisors, LLC serves as the principal underwriter of
Separate Account No. 45, and AXA Distributors, LLC serves as the principal
underwriter of Separate Account No. 49. The offering of the contracts is
intended to be continuous.
DISTRIBUTION OF THE CONTRACTS BY AXA ADVISORS, LLC
AXA Advisors, LLC ("AXA Advisors"), the successor to EQ Financial Consultants,
Inc. and an affiliate of Equitable Life, has responsibility for sales and
marketing functions for the contracts funded through Separate Account No. 45.
AXA Advisors also act as distributor for other
52 More information
Equitable Life annuity products with different features, expenses and fees. 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, New York 10104.
These contracts will be sold by financial professionals who are financial
professionals of AXA Advisors and its affiliates, who are also our licensed
insurance agents.
DISTRIBUTION OF THE CONTRACTS BY AXA DISTRIBUTORS, LLC
AXA Distributors, LLC (AXA Distributors), an indirect, wholly owned subsidiary
of Equitable Life, has responsibility for sales and marketing functions for the
contracts funded through Separate Account No. 49. AXA Distributors also acts as
distributor for other Equitable Life annuity products with different features,
expenses, and fees. AXA Distributors is registered with the SEC as a
broker-dealer and is a member of the National Association of Securities
Dealers, Inc. AXA Distributors' principal business address is 1290 Avenue of
the Americas, New York, New York 10104.
AXA Distributors is the successor by merger to all of the functions, rights and
obligations of Equitable Distributors, Inc. Like AXA Distributors, Equitable
Distributors, Inc. was owned by Equitable Holdings, LLC.
These contracts are sold by financial professionals of AXA Distributors as well
as by affiliated and unaffiliated broker-dealers who have entered into selling
agreements with AXA Distributors.
We pay broker-dealer sales compensation that will generally not exceed 7.0% of
the total contributions made under the contracts. Broker-dealers receiving
sales compensation will generally pay a portion of it to their financial
representatives as commissions related to the sales of the contracts. AXA
Distributors may also receive compensation and reimbursement for its marketing
services under the terms of its distribution agreement with Equitable Life, as
well as payments from portfolio advisers for sales meetings and/or seminar
sponsorships.
Equitable and/or AXA Distributors and/or AXA Advisors may use their respective
past profits or other resources to pay brokers and other financial
intermediaries for certain expenses they incur in providing services intended
to promote the sales of our products and/or shares in the underlying Trusts.
These services may include sales personnel training, prospectus review,
marketing and related services as well as support services that benefit
contract owners.
Similarly, in an effort to promote the sale of our products, AXA Advisors may
provide its financial professionals and managerial personnel with a higher
percentage of sales commissions and/or more compensation for the sale of an
Equitable variable product than it would for the sale of another product. Such
practice is known as providing differential compensation. Other forms of
compensation financial professionals may receive include health and retirement
benefits, credits towards stock options awards and rewards for sales incentive
campaigns. In addition, managerial personnel may receive expense
reimbursements, marketing allowances and so called "overrides." In part for tax
reasons, AXA Advisors financial professionals and managerial personnel qualify
for health and retirement benefits based on their sales of our variable
products.
These payments and differential compensation (together, "payments") can vary in
amount based on the applicable product and/or entity or individual involved. As
with any incentive, such payments may cause the recipient to show preference in
recommending the purchase or sale of our products. However, under applicable
rules of the National Association of Securities Dealers, Inc., AXA Advisors
financial professionals may only recommend to you products that they reasonably
believe are suitable for you based on facts that you have disclosed as to your
other security holdings, financial situation and needs. In making any
recommendation, financial professionals may nonetheless face conflicts of
interest because of the differences in compensation from one product category
to another, and because of differences in compensation between products in the
same category. Although Equitable takes all of its costs into account in
establishing the level of fees and expenses in our products, payments made will
not result in any separate charge to you under your contract.
More information 53
9. Incorporation of certain documents by reference
- --------------------------------------------------------------------------------
Equitable Life's Annual Report on Form 10-K for the year ended December 31,
2003 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).
54 Incorporation of certain documents by reference
Appendix I: Condensed financial information
- --------------------------------------------------------------------------------
The unit values and number of units outstanding shown below are for contracts
offered under Separate Accounts 45 and 49 with the daily asset charge of 1.35%.
- ----------------------------------------------------------------------------------------------
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, 2003.
----------------------------------
2003 2002 2001
- ----------------------------------------------------------------------------------------------
AXA Moderate Allocation
- ----------------------------------------------------------------------------------------------
Unit value $ 41.25 $ 35.10 $ 40.77
- ----------------------------------------------------------------------------------------------
Separate Account 45 number of units outstanding (000's) 3,674 3,926 2,511
- ----------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) 732 407 289
- ----------------------------------------------------------------------------------------------
AXA Premier VIP Aggressive Equity
- ----------------------------------------------------------------------------------------------
Unit value $ 48.73 $ 35.92 $ 51.19
- ----------------------------------------------------------------------------------------------
Separate Account 45 number of units outstanding (000's) 375 404 513
- ----------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) 812 899 1,101
- ----------------------------------------------------------------------------------------------
AXA Premier VIP Core Bond
- ----------------------------------------------------------------------------------------------
Unit value $ 10.92 $ 10.67 --
- ----------------------------------------------------------------------------------------------
Separate Account 45 number of units outstanding (000's) 1,242 1,119 --
- ----------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) 1,187 1,217 --
- ----------------------------------------------------------------------------------------------
AXA Premier VIP Health Care
- ----------------------------------------------------------------------------------------------
Unit value $ 9.98 $ 7.90 --
- ----------------------------------------------------------------------------------------------
Separate Account 45 number of units outstanding (000's) 378 205 --
- ----------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) 383 235 --
- ----------------------------------------------------------------------------------------------
AXA Premier VIP High Yield
- ----------------------------------------------------------------------------------------------
Unit value $ 27.48 $ 22.73 $ 23.74
- ----------------------------------------------------------------------------------------------
Separate Account 45 number of units outstanding (000's) 1,384 1,316 1,516
- ----------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) 3,959 3,827 4,307
- ----------------------------------------------------------------------------------------------
AXA Premier VIP International Equity
- ----------------------------------------------------------------------------------------------
Unit value $ 10.34 $ 7.81 --
- ----------------------------------------------------------------------------------------------
Separate Account 45 number of units outstanding (000's) 377 183 --
- ----------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) 494 118 --
- ----------------------------------------------------------------------------------------------
AXA Premier VIP Large Cap Core Equity
- ----------------------------------------------------------------------------------------------
Unit value $ 9.66 $ 7.64 --
- ----------------------------------------------------------------------------------------------
Separate Account 45 number of units outstanding (000's) 230 166 --
- ----------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) 248 169 --
- ----------------------------------------------------------------------------------------------
AXA Premier VIP Large Cap Growth
- ----------------------------------------------------------------------------------------------
Unit value $ 8.74 $ 6.79 --
- ----------------------------------------------------------------------------------------------
Separate Account 45 number of units outstanding (000's) 410 275 --
- ----------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) 802 305 --
- ----------------------------------------------------------------------------------------------
AXA Premier VIP Large Cap Value
- ----------------------------------------------------------------------------------------------
Unit value $ 10.23 $ 7.91 --
- ----------------------------------------------------------------------------------------------
Separate Account 45 number of units outstanding (000's) 429 344 --
- ----------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) 698 384 --
- ----------------------------------------------------------------------------------------------
AXA Premier VIP Small/Mid Cap Growth
- ----------------------------------------------------------------------------------------------
Unit value $ 8.58 $ 6.20 --
- ----------------------------------------------------------------------------------------------
Separate Account 45 number of units outstanding (000's) 761 429 --
- ----------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) 1,104 369 --
- ----------------------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------------------
2000 1999 1998 1997
- ----------------------------------------------------------------------------------------------------------
AXA Moderate Allocation
- ----------------------------------------------------------------------------------------------------------
Unit value -- -- -- --
- ----------------------------------------------------------------------------------------------------------
Separate Account 45 number of units outstanding (000's) -- -- -- --
- ----------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) -- -- -- --
- ----------------------------------------------------------------------------------------------------------
AXA Premier VIP Aggressive Equity
- ----------------------------------------------------------------------------------------------------------
Unit value $ 69.35 $ 81.12 $ 69.37 $ 70.28
- ----------------------------------------------------------------------------------------------------------
Separate Account 45 number of units outstanding (000's) 595 553 293 --
- ----------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) 1,253 1,163 939 380
- ----------------------------------------------------------------------------------------------------------
AXA Premier VIP Core Bond
- ----------------------------------------------------------------------------------------------------------
Unit value -- -- -- --
- ----------------------------------------------------------------------------------------------------------
Separate Account 45 number of units outstanding (000's) -- -- -- --
- ----------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) -- -- -- --
- ----------------------------------------------------------------------------------------------------------
AXA Premier VIP Health Care
- ----------------------------------------------------------------------------------------------------------
Unit value -- -- -- --
- ----------------------------------------------------------------------------------------------------------
Separate Account 45 number of units outstanding (000's) -- -- -- --
- ----------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) -- -- -- --
- ----------------------------------------------------------------------------------------------------------
AXA Premier VIP High Yield
- ----------------------------------------------------------------------------------------------------------
Unit value $ 23.90 $ 26.59 $ 27.96 $ 29.96
- ----------------------------------------------------------------------------------------------------------
Separate Account 45 number of units outstanding (000's) 1,616 1,539 801 --
- ----------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) 4,697 5,048 4,521 1,256
- ----------------------------------------------------------------------------------------------------------
AXA Premier VIP International Equity
- ----------------------------------------------------------------------------------------------------------
Unit value -- -- -- --
- ----------------------------------------------------------------------------------------------------------
Separate Account 45 number of units outstanding (000's) -- -- -- --
- ----------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) -- -- -- --
- ----------------------------------------------------------------------------------------------------------
AXA Premier VIP Large Cap Core Equity
- ----------------------------------------------------------------------------------------------------------
Unit value -- -- -- --
- ----------------------------------------------------------------------------------------------------------
Separate Account 45 number of units outstanding (000's) -- -- -- --
- ----------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) -- -- -- --
- ----------------------------------------------------------------------------------------------------------
AXA Premier VIP Large Cap Growth
- ----------------------------------------------------------------------------------------------------------
Unit value -- -- -- --
- ----------------------------------------------------------------------------------------------------------
Separate Account 45 number of units outstanding (000's) -- -- -- --
- ----------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) -- -- -- --
- ----------------------------------------------------------------------------------------------------------
AXA Premier VIP Large Cap Value
- ----------------------------------------------------------------------------------------------------------
Unit value -- -- -- --
- ----------------------------------------------------------------------------------------------------------
Separate Account 45 number of units outstanding (000's) -- -- -- --
- ----------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) -- -- -- --
- ----------------------------------------------------------------------------------------------------------
AXA Premier VIP Small/Mid Cap Growth
- ----------------------------------------------------------------------------------------------------------
Unit value -- -- -- --
- ----------------------------------------------------------------------------------------------------------
Separate Account 45 number of units outstanding (000's) -- -- -- --
- ----------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) -- -- -- --
- ----------------------------------------------------------------------------------------------------------
Appendix I: Condensed financial information A-1
- ----------------------------------------------------------------------------------------------
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, 2003.
----------------------------------
2003 2002 2001
- ----------------------------------------------------------------------------------------------
AXA Premier VIP Small/Mid Cap Value
- ----------------------------------------------------------------------------------------------
Unit value $ 10.22 $ 7.37 --
- ----------------------------------------------------------------------------------------------
Separate Account 45 number of units outstanding (000's) 765 486 --
- ----------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) 820 388 --
- ----------------------------------------------------------------------------------------------
AXA Premier VIP Technology
- ----------------------------------------------------------------------------------------------
Unit value $ 8.81 $ 5.66 --
- ----------------------------------------------------------------------------------------------
Separate Account 45 number of units outstanding (000's) 278 44 --
- ----------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) 571 264 --
- ----------------------------------------------------------------------------------------------
EQ/Alliance Common Stock
- ----------------------------------------------------------------------------------------------
Unit value $ 211.19 $ 143.14 $ 217.65
- ----------------------------------------------------------------------------------------------
Separate Account 45 number of units outstanding (000's) 1,145 1,240 1,555
- ----------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) 1,588 1,770 2,160
- ----------------------------------------------------------------------------------------------
EQ/Alliance Growth and Income
- ----------------------------------------------------------------------------------------------
Unit value $ 25.51 $ 19.83 $ 25.52
- ----------------------------------------------------------------------------------------------
Separate Account 45 number of units outstanding (000's) 5,870 6,485 7,830
- ----------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) 776 383 --
- ----------------------------------------------------------------------------------------------
EQ/Alliance Intermediate Government Securities
- ----------------------------------------------------------------------------------------------
Unit value $ 18.54 $ 18.40 $ 17.18
- ----------------------------------------------------------------------------------------------
Separate Account 45 number of units outstanding (000's) 2,993 4,099 3,288
- ----------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) 1,651 1,739 --
- ----------------------------------------------------------------------------------------------
EQ/Alliance International
- ----------------------------------------------------------------------------------------------
Unit value $ 11.40 $ 8.55 $ 9.64
- ----------------------------------------------------------------------------------------------
Separate Account 45 number of units outstanding (000's) 4,111 3,907 737
- ----------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) 2,639 208 --
- ----------------------------------------------------------------------------------------------
EQ/Alliance Premier Growth
- ----------------------------------------------------------------------------------------------
Unit value $ 5.88 $ 4.84 $ 7.12
- ----------------------------------------------------------------------------------------------
Separate Account 45 number of units outstanding (000's) 7,382 8,409 10,884
- ----------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) 10,777 12,339 15,780
- ----------------------------------------------------------------------------------------------
EQ/Alliance Quality Bond
- ----------------------------------------------------------------------------------------------
Unit value $ 15.53 $ 15.20 --
- ----------------------------------------------------------------------------------------------
Separate Account 45 number of units outstanding (000's) 434 430 --
- ----------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) 631 552 --
- ----------------------------------------------------------------------------------------------
EQ/Alliance Small Cap Growth
- ----------------------------------------------------------------------------------------------
Unit value $ 13.66 $ 9.83 $ 14.28
- ----------------------------------------------------------------------------------------------
Separate Account 45 number of units outstanding (000's) 2,001 2,020 2,115
- ----------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) 6,324 6,943 8,170
- ----------------------------------------------------------------------------------------------
EQ/Bernstein Diversified Value
- ----------------------------------------------------------------------------------------------
Unit value $ 12.88 $ 10.14 $ 11.90
- ----------------------------------------------------------------------------------------------
Separate Account 45 number of units outstanding (000's) 3,362 3,350 2,847
- ----------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) 10,036 10,473 10,569
- ----------------------------------------------------------------------------------------------
EQ/Calvert Socially Responsible
- ----------------------------------------------------------------------------------------------
Unit value $ 7.94 $ 6.29 $ 8.67
- ----------------------------------------------------------------------------------------------
Separate Account 45 number of units outstanding (000's) 39 29 10
- ----------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) 189 89 6
- ----------------------------------------------------------------------------------------------
EQ/Capital Guardian International
- ----------------------------------------------------------------------------------------------
Unit value $ 9.53 $ 7.29 $ 8.69
- ----------------------------------------------------------------------------------------------
Separate Account 45 number of units outstanding (000's) 279 133 --
- ----------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) 3,761 3,093 3,210
- ----------------------------------------------------------------------------------------------
EQ/Capital Guardian Research
- ----------------------------------------------------------------------------------------------
Unit value $ 10.33 $ 7.97 $ 10.72
- ----------------------------------------------------------------------------------------------
Separate Account 45 number of units outstanding (000's) 3,037 3,265 231
- ----------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) 17,536 18,971 2,208
- ----------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------
2000 1999 1998 1997
- ---------------------------------------------------------------------------------------------------------------
AXA Premier VIP Small/Mid Cap Value
- ---------------------------------------------------------------------------------------------------------------
Unit value -- -- -- --
- ---------------------------------------------------------------------------------------------------------------
Separate Account 45 number of units outstanding (000's) -- -- -- --
- ---------------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) -- -- -- --
- ---------------------------------------------------------------------------------------------------------------
AXA Premier VIP Technology
- ---------------------------------------------------------------------------------------------------------------
Unit value -- -- -- --
- ---------------------------------------------------------------------------------------------------------------
Separate Account 45 number of units outstanding (000's) -- -- -- --
- ---------------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) -- -- -- --
- ---------------------------------------------------------------------------------------------------------------
EQ/Alliance Common Stock
- ---------------------------------------------------------------------------------------------------------------
Unit value $ 247.21 $ 292.20 $ 237.18 $ 186.29
- ---------------------------------------------------------------------------------------------------------------
Separate Account 45 number of units outstanding (000's) 1,775 1,434 550 --
- ---------------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) 2,453 2,344 1,542 434
- ---------------------------------------------------------------------------------------------------------------
EQ/Alliance Growth and Income
- ---------------------------------------------------------------------------------------------------------------
Unit value $ 26.28 $ 24.51 $ 20.99 --
- ---------------------------------------------------------------------------------------------------------------
Separate Account 45 number of units outstanding (000's) 7,903 5,956 1,853 --
- ---------------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) -- -- -- --
- ---------------------------------------------------------------------------------------------------------------
EQ/Alliance Intermediate Government Securities
- ---------------------------------------------------------------------------------------------------------------
Unit value $ 16.14 $ 15.03 $ 15.25 --
- ---------------------------------------------------------------------------------------------------------------
Separate Account 45 number of units outstanding (000's) 2,333 2,057 929 --
- ---------------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) -- -- -- --
- ---------------------------------------------------------------------------------------------------------------
EQ/Alliance International
- ---------------------------------------------------------------------------------------------------------------
Unit value $ 12.74 $ 16.81 $ 12.40 --
- ---------------------------------------------------------------------------------------------------------------
Separate Account 45 number of units outstanding (000's) 839 591 166 --
- ---------------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) -- -- -- --
- ---------------------------------------------------------------------------------------------------------------
EQ/Alliance Premier Growth
- ---------------------------------------------------------------------------------------------------------------
Unit value $ 9.49 $ 11.79 -- --
- ---------------------------------------------------------------------------------------------------------------
Separate Account 45 number of units outstanding (000's) 12,132 6,304 -- --
- ---------------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) 17,298 8,614 -- --
- ---------------------------------------------------------------------------------------------------------------
EQ/Alliance Quality Bond
- ---------------------------------------------------------------------------------------------------------------
Unit value -- -- -- --
- ---------------------------------------------------------------------------------------------------------------
Separate Account 45 number of units outstanding (000's) -- -- -- --
- ---------------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) -- -- -- --
- ---------------------------------------------------------------------------------------------------------------
EQ/Alliance Small Cap Growth
- ---------------------------------------------------------------------------------------------------------------
Unit value $ 16.68 $ 14.88 $ 11.82 $ 12.54
- ---------------------------------------------------------------------------------------------------------------
Separate Account 45 number of units outstanding (000's) 2,156 1,264 775 --
- ---------------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) 9,189 6,912 6,101 2,521
- ---------------------------------------------------------------------------------------------------------------
EQ/Bernstein Diversified Value
- ---------------------------------------------------------------------------------------------------------------
Unit value $ 11.70 $ 12.10 $ 11.84 --
- ---------------------------------------------------------------------------------------------------------------
Separate Account 45 number of units outstanding (000's) -- -- -- --
- ---------------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) 10,105 9,428 5,696 --
- ---------------------------------------------------------------------------------------------------------------
EQ/Calvert Socially Responsible
- ---------------------------------------------------------------------------------------------------------------
Unit value -- -- -- --
- ---------------------------------------------------------------------------------------------------------------
Separate Account 45 number of units outstanding (000's) -- -- -- --
- ---------------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) -- -- -- --
- ---------------------------------------------------------------------------------------------------------------
EQ/Capital Guardian International
- ---------------------------------------------------------------------------------------------------------------
Unit value $ 11.14 $ 13.96 -- --
- ---------------------------------------------------------------------------------------------------------------
Separate Account 45 number of units outstanding (000's) -- -- -- --
- ---------------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) 3,230 1,477 -- --
- ---------------------------------------------------------------------------------------------------------------
EQ/Capital Guardian Research
- ---------------------------------------------------------------------------------------------------------------
Unit value $ 11.09 $ 10.61 -- --
- ---------------------------------------------------------------------------------------------------------------
Separate Account 45 number of units outstanding (000's) 174 72 -- --
- ---------------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) 2,064 982 -- --
- ---------------------------------------------------------------------------------------------------------------
A-2 Appendix I: Condensed financial information
- ----------------------------------------------------------------------------------------------
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, 2003.
----------------------------------
2003 2002 2001
- ----------------------------------------------------------------------------------------------
EQ/Capital Guardian U. S. Equity
- ----------------------------------------------------------------------------------------------
Unit value $ 10.29 $ 7.65 $ 10.15
- ----------------------------------------------------------------------------------------------
Separate Account 45 number of units outstanding (000's) 1,043 812 376
- ----------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) 6,120 5,353 5,372
- ----------------------------------------------------------------------------------------------
EQ/Emerging Markets Equity
- ----------------------------------------------------------------------------------------------
Unit value $ 8.72 $ 5.67 $ 6.11
- ----------------------------------------------------------------------------------------------
Separate Account 45 number of units outstanding (000's) 1,871 1,807 1,765
- ----------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) 4,287 3,992 4,501
- ----------------------------------------------------------------------------------------------
EQ/Equity 500 Index
- ----------------------------------------------------------------------------------------------
Unit value $ 23.57 $ 18.69 $ 24.41
- ----------------------------------------------------------------------------------------------
Separate Account 45 number of units outstanding (000's) 3,443 3,683 4,413
- ----------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) 10,779 11,356 12,941
- ----------------------------------------------------------------------------------------------
EQ/Evergreen Omega
- ----------------------------------------------------------------------------------------------
Unit value $ 7.89 $ 5.79 $ 7.72
- ----------------------------------------------------------------------------------------------
Separate Account 45 number of units outstanding (000's) 286 184 161
- ----------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) 552 243 140
- ----------------------------------------------------------------------------------------------
EQ/FI Mid Cap
- ----------------------------------------------------------------------------------------------
Unit value $ 9.73 $ 6.87 $ 8.54
- ----------------------------------------------------------------------------------------------
Separate Account 45 number of units outstanding (000's) 1,435 951 493
- ----------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) 2,874 2,717 2,307
- ----------------------------------------------------------------------------------------------
EQ/FI Small/Mid Cap Value
- ----------------------------------------------------------------------------------------------
Unit value $ 12.39 $ 9.42 $ 11.20
- ----------------------------------------------------------------------------------------------
Separate Account 45 number of units outstanding (000's) 2,709 2,863 2,091
- ----------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) 2,639 3,169 2,256
- ----------------------------------------------------------------------------------------------
EQ/J.P. Morgan Core Bond
- ----------------------------------------------------------------------------------------------
Unit value $ 13.48 $ 13.22 $ 12.23
- ----------------------------------------------------------------------------------------------
Separate Account 45 number of units outstanding (000's) 985 903 --
- ----------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) 12,484 14,961 14,916
- ----------------------------------------------------------------------------------------------
EQ/Janus Large Cap Growth
- ----------------------------------------------------------------------------------------------
Unit value $ 5.44 $ 4.39 $ 6.38
- ----------------------------------------------------------------------------------------------
Separate Account 45 number of units outstanding (000's) 566 552 575
- ----------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) 1,266 1,590 1,490
- ----------------------------------------------------------------------------------------------
EQ/Lazard Small Cap Value
- ----------------------------------------------------------------------------------------------
Unit value $ 14.39 $ 10.62 $ 12.50
- ----------------------------------------------------------------------------------------------
Separate Account 45 number of units outstanding (000's) 840 665 --
- ----------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) 7,289 7,825 7,755
- ----------------------------------------------------------------------------------------------
EQ/Marsico Focus
- ----------------------------------------------------------------------------------------------
Unit value $ 12.80 $ 9.89 $ 11.34
- ----------------------------------------------------------------------------------------------
Separate Account 45 number of units outstanding (000's) 1,522 767 14
- ----------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) 2,058 1,041 155
- ----------------------------------------------------------------------------------------------
EQ/Mercury Basic Value Equity
- ----------------------------------------------------------------------------------------------
Unit value $ 18.30 $ 14.14 $ 17.20
- ----------------------------------------------------------------------------------------------
Separate Account 45 number of units outstanding (000's) 3,348 3,538 3,681
- ----------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) 4,955 5,160 5,603
- ----------------------------------------------------------------------------------------------
EQ/Mercury International Value
- ----------------------------------------------------------------------------------------------
Unit value $ 14.08 $ 11.14 $ 13.55
- ----------------------------------------------------------------------------------------------
Separate Account 45 number of units outstanding (000's) 1,181 1,196 --
- ----------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) 10,329 12,054 14,032
- ----------------------------------------------------------------------------------------------
EQ/MFS Emerging Growth Companies
- ----------------------------------------------------------------------------------------------
Unit value $ 11.88 $ 9.31 $ 14.37
- ----------------------------------------------------------------------------------------------
Separate Account 45 number of units outstanding (000's) 5,082 5,638 7,229
- ----------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) 9,491 10,806 13,726
- ----------------------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------------------
2000 1999 1998 1997
- ----------------------------------------------------------------------------------------------------------
EQ/Capital Guardian U. S. Equity
- ----------------------------------------------------------------------------------------------------------
Unit value $ 10.50 $ 10.28 -- --
- ----------------------------------------------------------------------------------------------------------
Separate Account 45 number of units outstanding (000's) 298 126 -- --
- ----------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) 4,745 2,907 -- --
- ----------------------------------------------------------------------------------------------------------
EQ/Emerging Markets Equity
- ----------------------------------------------------------------------------------------------------------
Unit value $ 6.53 $ 11.04 $ 5.72 --
- ----------------------------------------------------------------------------------------------------------
Separate Account 45 number of units outstanding (000's) 2,063 1,267 177 --
- ----------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) 4,990 3,859 1,805 --
- ----------------------------------------------------------------------------------------------------------
EQ/Equity 500 Index
- ----------------------------------------------------------------------------------------------------------
Unit value $ 28.18 $ 31.67 $ 26.73 $ 21.21
- ----------------------------------------------------------------------------------------------------------
Separate Account 45 number of units outstanding (000's) 4,923 16 2 --
- ----------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) 14,537 -- -- --
- ----------------------------------------------------------------------------------------------------------
EQ/Evergreen Omega
- ----------------------------------------------------------------------------------------------------------
Unit value $ 9.43 $ 10.82 -- --
- ----------------------------------------------------------------------------------------------------------
Separate Account 45 number of units outstanding (000's) 164 139 -- --
- ----------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) 136 91 -- --
- ----------------------------------------------------------------------------------------------------------
EQ/FI Mid Cap
- ----------------------------------------------------------------------------------------------------------
Unit value $ 10.00 -- -- --
- ----------------------------------------------------------------------------------------------------------
Separate Account 45 number of units outstanding (000's) 82 -- -- --
- ----------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) 638 -- -- --
- ----------------------------------------------------------------------------------------------------------
EQ/FI Small/Mid Cap Value
- ----------------------------------------------------------------------------------------------------------
Unit value $ 10.92 $ 10.53 $ 10.48 --
- ----------------------------------------------------------------------------------------------------------
Separate Account 45 number of units outstanding (000's) 1,080 972 560 --
- ----------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) 223 -- -- --
- ----------------------------------------------------------------------------------------------------------
EQ/J.P. Morgan Core Bond
- ----------------------------------------------------------------------------------------------------------
Unit value $ 11.48 $ 10.44 $ 10.76 --
- ----------------------------------------------------------------------------------------------------------
Separate Account 45 number of units outstanding (000's) -- -- -- --
- ----------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) 13,606 12,838 8,661 --
- ----------------------------------------------------------------------------------------------------------
EQ/Janus Large Cap Growth
- ----------------------------------------------------------------------------------------------------------
Unit value $ 8.39 -- -- --
- ----------------------------------------------------------------------------------------------------------
Separate Account 45 number of units outstanding (000's) 258 -- -- --
- ----------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) 745 -- -- --
- ----------------------------------------------------------------------------------------------------------
EQ/Lazard Small Cap Value
- ----------------------------------------------------------------------------------------------------------
Unit value $ 10.76 $ 9.20 $ 9.17 --
- ----------------------------------------------------------------------------------------------------------
Separate Account 45 number of units outstanding (000's) -- -- -- --
- ----------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) 7,215 6,774 4,733 --
- ----------------------------------------------------------------------------------------------------------
EQ/Marsico Focus
- ----------------------------------------------------------------------------------------------------------
Unit value -- -- -- --
- ----------------------------------------------------------------------------------------------------------
Separate Account 45 number of units outstanding (000's) -- -- -- --
- ----------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) -- -- -- --
- ----------------------------------------------------------------------------------------------------------
EQ/Mercury Basic Value Equity
- ----------------------------------------------------------------------------------------------------------
Unit value $ 16.52 $ 14.98 $ 12.76 $ 11.60
- ----------------------------------------------------------------------------------------------------------
Separate Account 45 number of units outstanding (000's) 3,305 2,567 1,009 --
- ----------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) 5,888 5,766 4,389 1,182
- ----------------------------------------------------------------------------------------------------------
EQ/Mercury International Value
- ----------------------------------------------------------------------------------------------------------
Unit value $ 17.50 $ 20.23 $ 12.80 $ 10.86
- ----------------------------------------------------------------------------------------------------------
Separate Account 45 number of units outstanding (000's) -- -- -- --
- ----------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) 15,833 13,783 10,607 4,609
- ----------------------------------------------------------------------------------------------------------
EQ/MFS Emerging Growth Companies
- ----------------------------------------------------------------------------------------------------------
Unit value $ 22.09 $ 27.59 $ 16.10 $ 12.13
- ----------------------------------------------------------------------------------------------------------
Separate Account 45 number of units outstanding (000's) 8,254 6,114 1,942 --
- ----------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) 16,073 13,671 9,117 3,327
- ----------------------------------------------------------------------------------------------------------
Appendix I: Condensed financial information A-3
- ----------------------------------------------------------------------------------------------
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, 2003.
----------------------------------
2003 2002 2001
- ----------------------------------------------------------------------------------------------
EQ/MFS Investors Trust
- ----------------------------------------------------------------------------------------------
Unit value $ 8.17 $ 6.79 $ 8.71
- ----------------------------------------------------------------------------------------------
Separate Account 45 number of units outstanding (000's) 715 776 948
- ----------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) 6,684 6,910 8,228
- ----------------------------------------------------------------------------------------------
EQ/Money Market
- ----------------------------------------------------------------------------------------------
Unit value $ 28.34 $ 28.57 $ 28.61
- ----------------------------------------------------------------------------------------------
Separate Account 45 number of units outstanding (000's) 1,537 2,299 2,501
- ----------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) 3,834 5,633 6,273
- ----------------------------------------------------------------------------------------------
EQ/Putnam Growth & Income Value
- ----------------------------------------------------------------------------------------------
Unit value $ 12.07 $ 9.64 $ 12.08
- ----------------------------------------------------------------------------------------------
Separate Account 45 number of units outstanding (000's) 1,530 1,663 1,936
- ----------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) 18,895 21,846 25,574
- ----------------------------------------------------------------------------------------------
EQ/Putnam Voyager
- ----------------------------------------------------------------------------------------------
Unit value $ 11.46 $ 9.38 $ 12.90
- ----------------------------------------------------------------------------------------------
Separate Account 45 number of units outstanding (000's) 20 13 --
- ----------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) 11,360 13,307 16,512
- ----------------------------------------------------------------------------------------------
EQ/Small Company Index
- ----------------------------------------------------------------------------------------------
Unit value $ 12.36 $ 8.59 $ 11.01
- ----------------------------------------------------------------------------------------------
Separate Account 45 number of units outstanding (000's) 1,030 859 899
- ----------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) 3,320 2,817 3,131
- ----------------------------------------------------------------------------------------------
EQ/Technology
- ----------------------------------------------------------------------------------------------
Unit value $ 4.08 $ 2.88 $ 4.93
- ----------------------------------------------------------------------------------------------
Separate Account 45 number of units outstanding (000's) 2,070 2,020 2,346
- ----------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) 2,731 2,742 3,522
- ----------------------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------------------
2000 1999 1998 1997
- ----------------------------------------------------------------------------------------------------------
EQ/MFS Investors Trust
- ----------------------------------------------------------------------------------------------------------
Unit value $ 10.51 $ 10.72 -- --
- ----------------------------------------------------------------------------------------------------------
Separate Account 45 number of units outstanding (000's) 1,014 550 -- --
- ----------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) 8,940 6,033 -- --
- ----------------------------------------------------------------------------------------------------------
EQ/Money Market
- ----------------------------------------------------------------------------------------------------------
Unit value $ 28.00 $ 26.78 $ 25.92 $ 25.00
- ----------------------------------------------------------------------------------------------------------
Separate Account 45 number of units outstanding (000's) 1,860 2,900 1,566 --
- ----------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) 5,065 7,278 5,158 1,153
- ----------------------------------------------------------------------------------------------------------
EQ/Putnam Growth & Income Value
- ----------------------------------------------------------------------------------------------------------
Unit value $ 13.14 $ 12.47 $ 12.82 $ 11.52
- ----------------------------------------------------------------------------------------------------------
Separate Account 45 number of units outstanding (000's) 2,045 2,057 867 --
- ----------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) 28,008 29,522 24,343 8,113
- ----------------------------------------------------------------------------------------------------------
EQ/Putnam Voyager
- ----------------------------------------------------------------------------------------------------------
Unit value $ 17.32 $ 21.35 $ 16.61 $ 12.35
- ----------------------------------------------------------------------------------------------------------
Separate Account 45 number of units outstanding (000's) -- -- -- --
- ----------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) 19,069 17,154 10,072 2,581
- ----------------------------------------------------------------------------------------------------------
EQ/Small Company Index
- ----------------------------------------------------------------------------------------------------------
Unit value $ 10.94 $ 11.48 $ 9.64 --
- ----------------------------------------------------------------------------------------------------------
Separate Account 45 number of units outstanding (000's) 989 756 284 --
- ----------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) 3,340 2,922 1,610 --
- ----------------------------------------------------------------------------------------------------------
EQ/Technology
- ----------------------------------------------------------------------------------------------------------
Unit value $ 6.61 -- -- --
- ----------------------------------------------------------------------------------------------------------
Separate Account 45 number of units outstanding (000's) 1,852 -- -- --
- ----------------------------------------------------------------------------------------------------------
Separate Account 49 number of units outstanding (000's) 3,814 -- -- --
- ----------------------------------------------------------------------------------------------------------
A-4 Appendix I: Condensed financial information
Appendix II: Purchase considerations for QP contracts
- --------------------------------------------------------------------------------
Trustees who are considering the purchase of an Equitable Accumulator(R) QP
contract should discuss with their tax advisers whether this is an appropriate
investment vehicle for the employer's plan. Trustees should consider whether
the plan provisions permit the investment of plan assets in the QP contract,
the distribution of such an annuity, the purchase of the guaranteed minimum
income benefit and the payment of death benefits in accordance with the
requirements of the federal income tax rules. The QP contract and this
Prospectus should be reviewed in full, and the following factors, among others,
should be noted. Assuming continued plan qualification and operation, earnings
on qualified plan assets will accumulate value on a tax-deferred basis even if
the plan is not funded by the Equitable Accumulator(R) QP contract or another
annuity. Therefore, you should purchase an Equitable Accumulator(R) QP contract
to fund a plan for the contract's features and benefits other than tax
deferral, after considering the relative costs and benefits of annuity
contracts and other types of arrangements and funding vehicles. This QP
contract accepts transfer contributions only and not regular, ongoing payroll
contributions. For 401(k) plans under defined contribution plans, no employee
after-tax contributions are accepted.
We will not accept defined benefit plans. For defined contribution plans, we
will only accept transfers from another defined contribution plan or a change
of investment vehicles in the plan. Only one additional transfer contribution
may be made per contract year. If overfunding of a plan occurs, withdrawals
from the QP contract may be required. A withdrawal charge and/or market value
adjustment may apply.
Further, Equitable Life will not perform or provide any plan recordkeeping
services with respect to the QP contracts. The plan's administrator will be
solely responsible for performing or providing for all such services. There is
no loan feature offered under the QP contracts, so if the plan provides for
loans and a participant/employee takes a loan from the plan, other plan assets
must be used as the source of the loan and any loan repayments must be credited
to other investment vehicles and/or accounts available under the plan.
Given that required minimum distributions must generally commence from the plan
for annuitants after age 70-1/2, trustees should consider that:
o the QP contract may not be an appropriate purchase for annuitants
approaching or over age 70-1/2;
o although certain provisions of the Temporary Regulations on required
minimum distributions which would have required that the actuarial value of
additional annuity contract benefits be added to the dollar amount credited
for purposes of calculating required minimum distributions have currently
been suspended, these or similar provisions may apply in future years, and
could increase the amounts required to be distributed from the contract;
and
o the guaranteed minimum income benefit under baseBUILDER may not be an
appropriate feature for annuitants who are older than age 60-1/2 when the
contract is issued.
Finally, because the method of purchasing the QP contract, including the large
initial contribution, and the features of the QP contract may appeal more to
plan participants/employees who are older and tend to be highly paid, and
because certain features of the QP contract are available only to plan
participants/employees who meet certain minimum and/or maximum age
requirements, plan trustees should discuss with their advisers whether the
purchase of the QP contract would cause the plan to engage in prohibited
discrimination in contributions, benefits or otherwise.
Appendix II: Purchase considerations for QP contracts B-1
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 was allocated
on February 13, 2004 to a fixed maturity option with a maturity date of
February 13, 2013 (nine years later) at a hypothetical rate to maturity of
7.00%, resulting in a maturity value of $183,846 on the maturity date. We
further assume that a withdrawal of $50,000 is made four years later on
February 13, 2009.
- -----------------------------------------------------------------------------------------------
Hypothetical Assumed
rate to maturity on
February 13, 2009
-------------------------
5.00% 9.00%
- -----------------------------------------------------------------------------------------------
As of February 13, 2009 (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 February 13, 2009 (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 portion of 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 portion of a positive
market value adjustment is realized.
C-1 Appendix III: Market value adjustment example
Appendix IV: Guaranteed minimum death benefit example
- --------------------------------------------------------------------------------
The death benefit under the contracts is equal to the account value or, if
greater, the guaranteed minimum death benefit.
The following illustrates the guaranteed minimum death benefit calculation.
Assuming $100,000 is allocated to the variable investment options (with no
allocation to the AXA Premier VIP Core Bond, EQ/Alliance Intermediate
Government Securities, EQ/Money Market or EQ/Alliance Quality Bond options or
the fixed maturity options), no additional contributions, no transfers, no
withdrawals and no loans under a Rollover TSA contract, the guaranteed minimum
death benefit for an annuitant age 45 would be calculated as follows:
- ---------------------------------------------------------------------------------------
End of 5% roll up to age 80 Annual ratchet to age 80
contract guaranteed minimum guaranteed minimum
year Account value death benefit(1) death benefit
- ---------------------------------------------------------------------------------------
1 $105,000 $ 105,000(1) $ 105,000(3)
- ---------------------------------------------------------------------------------------
2 $115,500 $ 110,250(2) $ 115,500(3)
- ---------------------------------------------------------------------------------------
3 $129,360 $ 115,763(2) $ 129,360(3)
- ---------------------------------------------------------------------------------------
4 $103,488 $ 121,551(1) $ 129,360(4)
- ---------------------------------------------------------------------------------------
5 $113,837 $ 127,628(1) $ 129,360(4)
- ---------------------------------------------------------------------------------------
6 $127,497 $ 134,010(1) $ 129,360(4)
- ---------------------------------------------------------------------------------------
7 $127,497 $ 140,710(1) $ 129,360(4)
- ---------------------------------------------------------------------------------------
The account values for contract years 1 through 7 are based on hypothetical
rates of return of 5.00%, 10.00%, 12.00%, (20.00)%, 10.00%, 12.00% and 0.00%.
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.
5% ROLL UP TO AGE 80*
(1) At the end of contract year 1, and again at the end of contract years 4
through 7, the death benefit will be the guaranteed minimum death benefit.
(2) At the end of contract years 2 and 3, the death benefit will be the current
account value since it is higher than the current guaranteed minimum death
benefit.
ANNUAL RATCHET TO AGE 80
(3) At the end of contract years 1 through 3, the guaranteed minimum death
benefit is the current account value.
(4) At the end of contract years 4 through 7, the guaranteed minimum death
benefit is the guaranteed minimum death benefit at the end of the prior
year since it is equal to or higher than the current account value.
- ----------
Appendix IV: Guaranteed minimum death benefit example D-1
Statement of additional information
- --------------------------------------------------------------------------------
TABLE OF CONTENTS
Page
Tax Information 2
Unit Values 15
Equitable Life's Pending Name Change 15
Custodian and Independent Auditors 15
Distribution of the Contracts 16
Financial Statements 16
How to Obtain an Equitable Accumulator(R) Statement of Additional Information
for Separate Account No. 45 and Separate Account No. 49
Send this request form to:
Equitable Accumulator(R)
P.O. Box 1547
Secaucus, NJ 07096-1547
- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
Please send me a combined Equitable Accumulator(R) SAI for Separate Account No.
45 and Separate Account No. 49 dated May 1, 2004.
- --------------------------------------------------------------------------------
Name:
- --------------------------------------------------------------------------------
Address:
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City State Zip
(SAI 13AMLF(5/03))
The Equitable Life Assurance Society of the United States --
SUPPLEMENT DATED MAY 1, 2004, TO THE MAY 1, 2004, ACCUMULATOR(R) ADVISOR(SM)
PROSPECTUS AND STATEMENTS OF ADDITIONAL INFORMATION ("SAI"):
- --------------------------------------------------------------------------------
This supplement is for the Accumulator(R) Advisor(SM) product that is
distributed through AXA Advisors, LLC, and modifies certain information in the
above-referenced Prospectus and SAI, as supplemented to date (the "Prospectus").
Unless otherwise indicated, all other information included in the Prospectus
remains unchanged. The terms and section headings we use in this supplement have
the same meaning as in the Prospectus.
1. The guaranteed minimum death benefit described in this supplement is
available instead of the minimum death benefit described in the prospectus.
Therefore, all references in the prospectus to "minimum death benefit" are
hereby changed to "guaranteed minimum death benefit." In addition, the
following additions and/or modifications are made to the Prospectus under
the sections indicated below to reflect the guaranteed minimum death
benefit feature.
A. In "Equitable Accumulator(R) Advisor(SM) at a glance -- key features"
under "Additional features", a new bullet is added as follows:
o Guaranteed minimum death benefit
In "Contents of this Prospectus" under "Contract features and benefits"
the following is added after "Allocating your contributions":
Guaranteed minimum death benefit
B. In "Contract features and benefits" the following is added as a new
section after "Allocating your contributions":
Guaranteed minimum death benefit
A guaranteed minimum death benefit is provided under your contract at no
additional charge.
Guaranteed minimum death benefit applicable for annuitant ages 0 through
79 at issue of NQ contracts; 20 through 79 at issue of Rollover IRA and
Roth Conversion IRA contracts; and 20 through 75 at issue of QP contracts.
Annual ratchet to age 80. On the contract date, your guaranteed minimum
death benefit equals your initial contribution. Then, on each contract
date anniversary, we will determine your guaranteed minimum death benefit
by comparing your current guaranteed minimum death benefit to your account
value on that contract date anniversary. If your account value is higher
than your guaranteed minimum death benefit, we will increase your
guaranteed minimum death benefit to equal your account value. On the other
hand, if your account value on the contract date anniversary is less than
your guaranteed minimum death benefit, we will not adjust your guaranteed
minimum death benefit either up or down. If you make additional
contributions, we will increase your current guaranteed minimum 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 guaranteed minimum
death benefit on the date you take the withdrawal.
Guaranteed minimum death benefit applicable for annuitant ages 80 through
83 at issue of NQ, Rollover IRA and Roth Conversion IRA contracts.
On the contract date, your guaranteed minimum death benefit equals your
initial contribution. Thereafter, it will be increased by the dollar
amount of any additional contributions. We will adjust your guaranteed
minimum death benefit if you take any withdrawals.
Please see, "Termination of your contract" in "Determining your contract
value" earlier in the Prospectus and "How withdrawals affect your
guaranteed minimum death benefit" in "Accessing your money" later in the
Prospectus for information on how withdrawals affect your guaranteed
minimum death benefit.
See Appendix IV for an example of how we calculate the guaranteed minimum
death benefit.
C. In "Accessing your money" under "How withdrawals affect your minimum death
benefit," all references to "minimum death benefit" are replaced by
"guaranteed minimum death benefit."
x00502/SA45
IM-02-14 (5/02) Cat. No. 131982(5/03)
D. In "Accessing your money" under "Withdrawing your account value," the
second paragraph is deleted in its entirety and replaced with the
following:
Please see "Termination of your contract" in "Determining your contract
value" earlier in the Prospectus and "How withdrawals affect your
guaranteed minimum death benefit" below for more information on how
withdrawals affect your guaranteed minimum death benefit and could
potentially cause your contract to terminate.
E. In "Charges and expenses," under "Group or sponsored arrangements" the
second sentence is deleted and replaced with the following:
We may also change the guaranteed minimum death benefit or offer variable
investment options that invest in shares of either Trust that are not
subject to the 12b-1 fee.
F. In "Payment of death benefit" under "Your beneficiary and payment of
benefit," the third paragraph is deleted in its entirety and replaced with
the following:
The death benefit is equal to your account value (without adjustment for
any otherwise applicable negative market value adjustment) or, if greater,
the guaranteed minimum death benefit. We determine the amount of the death
benefit (other than the guaranteed minimum death benefit) as of the date
we receive satisfactory proof of the annuitant's death, any required
instructions for payment, information and forms necessary to effect
payment. The amount of the guaranteed minimum death benefit will be the
guaranteed minimum death benefit as of the date of the annuitant's death
adjusted for any subsequent withdrawals.
G. An Appendix IV is added as follows:
Appendix IV: Guaranteed minimum death benefit example
The death benefit under the contracts is equal to the account value or, if
greater, the guaranteed minimum death benefit.
The following illustrates the guaranteed minimum death benefit
calculation. Assuming $100,000 is allocated to the variable investment
options (with no allocation to the EQ/Money Market option, AXA Premier VIP
Core Bond option, EQ/Alliance Intermediate Government Securities option,
EQ/Alliance Quality Bond option or the fixed maturity options), no
additional contributions, no transfers, no withdrawals and no loans under
a Rollover TSA contract, the guaranteed minimum death benefit for an
annuitant age 45 would be calculated as follows:
- -------------------------------------------------------------
End of Annual ratchet to age 80
contract guaranteed minimum
year Account value death benefit
- -------------------------------------------------------------
1 $105,000 $105,000 (1)
- -------------------------------------------------------------
2 $115,500 $115,500 (1)
- -------------------------------------------------------------
3 $129,360 $129,360 (1)
- -------------------------------------------------------------
4 $103,488 $129,360 (2)
- -------------------------------------------------------------
5 $113,837 $129,360 (2)
- -------------------------------------------------------------
6 $127,497 $129,360 (2)
- -------------------------------------------------------------
7 $127,497 $129,360 (2)
- -------------------------------------------------------------
The account values for contract years 1 through 7 are based on
hypothetical rates of return of 5.00%, 10.00%, 12.00%, (20.00)%, 10.00%,
12.00% and 0.00%. 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.
Annual ratchet to age 80
(1) At the end of contract years 1 through 3, the guaranteed minimum death
benefit is equal to the current account value.
(2) At the end of contract years 4 through 7, the guaranteed minimum death
benefit is equal to the guaranteed minimum death benefit at the end of
the prior year since it is equal to or higher than the current account
value."
2
Equitable Accumulator(R)
A combination variable and fixed deferred annuity contract
PROSPECTUS DATED MAY 1, 2004
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. You should read the prospectuses for each
Trust, which contain important information about the portfolios.
- --------------------------------------------------------------------------------
WHAT IS THE EQUITABLE ACCUMULATOR(R)?
Equitable Accumulator(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 offers income and death
benefit protection. It also offers a number of payout options. You invest to
accumulate value on a tax-deferred basis in one or more of our variable
investment options, the guaranteed interest option, fixed maturity options, or
the account for special dollar cost averaging ("investment options"). This
contract may not currently be available in all states. Certain features and
benefits described in this Prospectus may vary in your state; all features and
benefits may not be available in all contracts or in all states. Please see
Appendix VII later in this Prospectus for more information on state
availability and/or variations of certain features and benefits.
- --------------------------------------------------------------------------------
Variable investment options
- --------------------------------------------------------------------------------
o AXA Aggressive Allocation(1) o EQ/Bernstein Diversified Value
o AXA Conservative Allocation(1) o EQ/Calvert Socially Responsible
o AXA Conservative-Plus Allocation(1) o EQ/Capital Guardian International
o AXA Moderate Allocation(1) o EQ/Capital Guardian Research
o AXA Moderate-Plus Allocation(1) o EQ/Capital Guardian U.S. Equity
o AXA Premier VIP Aggressive Equity o EQ/Emerging Markets Equity
o AXA Premier VIP Core Bond o EQ/Equity 500 Index
o AXA Premier VIP Health Care o EQ/Evergreen Omega
o AXA Premier VIP High Yield o EQ/FI Mid Cap
o AXA Premier VIP International Equity o EQ/FI Small/Mid Cap Value
o AXA Premier VIP Large Cap Core o EQ/J.P. Morgan Core Bond
Equity o EQ/Janus Large Cap Growth
o AXA Premier VIP Large Cap Growth o EQ/Lazard Small Cap Value
o AXA Premier VIP Large Cap Value o EQ/Marsico Focus
o AXA Premier VIP Small/Mid Cap o EQ/Mercury Basic Value Equity
Growth o EQ/Mercury International Value
o AXA Premier VIP Small/Mid Cap Value o EQ/MFS Emerging Growth Companies
o AXA Premier VIP Technology o EQ/MFS Investors Trust
o EQ/Alliance Common Stock o EQ/Money Market
o EQ/Alliance Growth and Income o EQ/Putnam Growth & Income Value
o EQ/Alliance Intermediate Government o EQ/Putnam Voyager
Securities o EQ/Small Company Index
o EQ/Alliance International o EQ/Technology(2)
o EQ/Alliance Premier Growth o Laudus Rosenberg VIT Value Long/
o EQ/Alliance Quality Bond Short Equity(3)
o EQ/Alliance Small Cap Growth o U.S. Real Estate -- Class II
- --------------------------------------------------------------------------------
(1) The "AXA Allocation" portfolios.
(2) Subject to shareholder approval, on or about May 14, 2004, we anticipate
that the EQ/Technology investment option (the "replaced option"), which
invests in a corresponding portfolio of EQ Advisors Trust, will be merged
into the AXA Premier VIP Technology investment option (the "surviving
option"), which invests in a corresponding portfolio of AXA Premier VIP
Trust. At that time, we will move the assets in the replaced option into
the surviving option and all allocation elections to the replaced option
will be considered allocations to the surviving option.
(3) Formerly named "AXA Rosenberg VIT Value Long/Short Equity."
You may allocate amounts to any of the variable investment options. Each
variable investment option is a subaccount of Separate Account No. 49. Each
variable investment option, in turn, invests in a corresponding securities
portfolio of EQ Advisors Trust, AXA Premier VIP Trust, The Universal
Institutional Funds, Inc. or Barr Rosenberg Variable Insurance 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.
ACCOUNT FOR SPECIAL DOLLAR COST AVERAGING. This account pays fixed interest at
guaranteed rates.
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.
We offer two versions of the traditional IRA: "Rollover IRA" and "Flexible
Premium IRA." We also offer two versions of the Roth IRA: "Roth Conversion
IRA" and "Flexible Premium Roth IRA."
o Traditional and Roth Inherited IRA beneficiary continuation contract
("Inherited IRA").
o An annuity that is an investment vehicle for a qualified defined contribution
plan ("QP").
o An Internal Revenue Code Section 403(b) Tax-Sheltered Annuity ("TSA") --
("Rollover TSA").
A contribution of at least $5,000 is required to purchase an NQ, Rollover IRA,
Roth Conversion IRA, Inherited IRA, QP, or Rollover TSA contract. For Flexible
Premium IRA or Flexible Premium Roth IRA contracts, we require a contribution
of $2,000 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, 2004, is part of the registration statement.
The SAI is available free of charge. You may request one by writing to our
processing office or calling 1-800-789-7771. 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.
X00678/Core '04 Series
(R-4/15)
Contents of this Prospectus
- --------------------------------------------------------------------------------
EQUITABLE ACCUMULATOR(R)
- --------------------------------------------------------------------------------
Index of key words and phrases 4
Who is Equitable Life? 5
How to reach us 6
Equitable Accumulator(R) at a glance -- key features 8
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FEE TABLE 11
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Example 14
- --------------------------------------------------------------------------------
1. CONTRACT FEATURES AND BENEFITS 18
- --------------------------------------------------------------------------------
How you can purchase and contribute to your contract 18
Owner and annuitant requirements 25
How you can make your contributions 25
What are your investment options under the contract? 25
Portfolios of the Trusts 26
Allocating your contributions 31
Your benefit base 34
Annuity purchase factors 34
Our Guaranteed minimum income benefit option 34
Guaranteed minimum death benefit 36
Inherited IRA beneficiary continuation contract 37
Your right to cancel within a certain number of days 38
- --------------------------------------------------------------------------------
2. DETERMINING YOUR CONTRACT'S VALUE 39
- --------------------------------------------------------------------------------
Your account value and cash value 39
Your contract's value in the variable investment options 39
Your contract's value in the guaranteed interest option 39
Your contract's value in the fixed maturity options 39
Your contract's value in the account for special dollar
cost averaging 39
Termination of your contract 39
- ----------------------
"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
- --------------------------------------------------------------------------------
3. TRANSFERRING YOUR MONEY AMONG INVESTMENT OPTIONS 40
- --------------------------------------------------------------------------------
Transferring your account value 40
Disruptive transfer activity 40
Rebalancing your account value 41
- --------------------------------------------------------------------------------
4. ACCESSING YOUR MONEY 42
- --------------------------------------------------------------------------------
Withdrawing your account value 42
How withdrawals are taken from your account value 43
How withdrawals (and transfers out of the Special 10 year fixed
maturity option) affect your Guaranteed minimum income
benefit, Guaranteed minimum death benefit and
Guaranteed principal benefit option 2 43
Loans under Rollover TSA contracts 44
Surrendering your contract to receive its cash value 44
When to expect payments 44
Your annuity payout options 45
- --------------------------------------------------------------------------------
5. CHARGES AND EXPENSES 47
- --------------------------------------------------------------------------------
Charges that Equitable Life deducts 47
Charges that the Trusts deduct 50
Group or sponsored arrangements 50
Other distribution arrangements 50
- --------------------------------------------------------------------------------
6. PAYMENT OF DEATH BENEFIT 51
- --------------------------------------------------------------------------------
Your beneficiary and payment of benefit 51
How death benefit payment is made 51
Beneficiary continuation option 52
- --------------------------------------------------------------------------------
7. TAX INFORMATION 55
- --------------------------------------------------------------------------------
Overview 55
Buying a contract to fund a retirement arrangement 55
Transfers among investment options 55
Taxation of nonqualified annuities 55
Individual retirement arrangements (IRAs) 57
Special rules for contracts funding qualified plans 59
Tax-Sheltered Annuity contracts (TSAs) 59
Federal and state income tax withholding and
information reporting 60
Impact of taxes to Equitable Life 61
- --------------------------------------------------------------------------------
8. MORE INFORMATION 62
- --------------------------------------------------------------------------------
About Separate Account No. 49 62
About the Trusts 62
About our fixed maturity options 62
About the general account 63
About other methods of payment 63
Dates and prices at which contract events occur 64
About your voting rights 65
About legal proceedings 65
About our independent auditors 65
Financial statements 65
Transfers of ownership, collateral assignments, loans
and borrowing 65
Distribution of the contracts 66
- --------------------------------------------------------------------------------
9. INCORPORATION OF CERTAIN DOCUMENTS
BY REFERENCE 67
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
APPENDICES
- --------------------------------------------------------------------------------
I -- Condensed Financial information A-1
II -- Purchase considerations for QP contracts B-1
III -- Market value adjustment example C-1
IV -- Enhanced death benefit example D-1
V -- Hypothetical illustrations E-1
VI -- Guaranteed principal benefit example F-1
VII -- State contract availability and/or variations of certain
features and benefits G-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 for special dollar cost averaging 33
account value 39
administrative charge 47
Annual administrative charge 47
Annual ratchet death benefit 34
annuitant 18
annuity maturity date 46
annuity payout options 45
annuity purchase factors 34
automatic investment program 64
beneficiary 51
Beneficiary continuation option ("BCO") 52
benefit base 34
business day 64
cash value 39
charges for state premium and other applicable taxes 49
contract date 10
contract date anniversary 10
contract year 10
contributions to traditional IRAs 58
regular contributions 58
rollovers and transfers 58
disability, terminal illness or confinement to nursing home 48
disruptive transfer activity 40
Distribution Charge 47
EQAccess 6
ERISA 44
Fixed-dollar option 33
fixed maturity options 30
Flexible Premium IRA cover
Flexible Premium Roth IRA cover
free look 38
free withdrawal amount 48
general account 63
General dollar cost averaging 33
guaranteed interest option 30
Guaranteed minimum death benefit 36
Guaranteed minimum income benefit 34
Guaranteed minimum income benefit charge 49
Guaranteed principal benefits 31
IRA cover
IRS 55
Inherited IRA cover
Investment simplifier 33
Page
investment options cover
lifetime required minimum distribution withdrawals 43
loan reserve account 44
loans under Rollover TSA 44
lump sum withdrawals 42
market adjusted amount 30
market value adjustment 30
market timing 40
maturity dates 30
maturity value 30
Mortality and expense risks charge 47
NQ cover
participant 25
portfolio cover
processing office 6
Protection Plus 36
Protection plus charge 49
QP cover
rate to maturity 30
Rebalancing 41
Rollover IRA cover
Rollover TSA cover
roll-up death benefit 34
Roth Conversion IRA cover
Roth IRA 57
SAI cover
SEC cover
self-directed allocation 31
Separate Account 49 62
special dollar cost averaging 32
standard death benefit 34
substantially equal withdrawals 42
Successor owner and annuitant 51
Spousal protection 52
systematic withdrawals 42
TOPS 6
TSA cover
traditional IRA 57
Trusts cover
unit 39
variable investment options 25
wire transmittals and electronic applications 63
withdrawal charge 48
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 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 (Guaranteed Fixed
Interest Accounts in supplemental materials)
variable investment options Investment Funds
account value Annuity Account Value
rate to maturity Guaranteed Rates
unit Accumulation Unit
Guaranteed minimum death benefit Guaranteed death benefit
Guaranteed minimum income benefit Guaranteed Income Benefit
guaranteed interest option Guaranteed Interest Account
- -----------------------------------------------------------------------------------
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 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
$508.31 billion in assets as of December 31, 2003. 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.
Effective on or about September 7, 2004, we expect, subject to regulatory
approval, to change the name of "The Equitable Life Assurance Society of the
United States" to "AXA Equitable Life Insurance Company." When the name change
becomes effective, all references in any current prospectus, prospectus
supplement or statement of additional information to "The Equitable Life
Assurance Society of the United States" will become references to "AXA
Equitable Life Insurance Company." Accordingly, all references to "Equitable
Life" or "Equitable" will become references to "AXA Equitable."
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 CONTRIBUTIONS SENT BY REGULAR MAIL:
- --------------------------------------------------------------------------------
Equitable Accumulator(R)
P.O. Box 13014
Newark, NJ 07188-0014
- --------------------------------------------------------------------------------
FOR CONTRIBUTIONS SENT BY EXPRESS DELIVERY:
- --------------------------------------------------------------------------------
Equitable Accumulator(R)
c/o Bank One, N.A.
300 Harmon Meadow Boulevard, 3rd Floor
Attn: Box 13014
Secaucus, NJ 07094
- --------------------------------------------------------------------------------
FOR ALL OTHER COMMUNICATIONS (E.G., REQUESTS FOR
TRANSFERS, WITHDRAWALS, OR REQUIRED NOTICES) SENT BY
REGULAR MAIL:
- --------------------------------------------------------------------------------
Equitable Accumulator(R)
P.O. Box 1547
Secaucus, NJ 07096-1547
- --------------------------------------------------------------------------------
FOR ALL OTHER COMMUNICATIONS (E.G., REQUESTS FOR
TRANSFERS, WITHDRAWALS, OR REQUIRED NOTICES) SENT BY
EXPRESS DELIVERY:
- --------------------------------------------------------------------------------
Equitable Accumulator(R)
200 Plaza Drive, 4th Floor
Secaucus, NJ 07094
- --------------------------------------------------------------------------------
REPORTS WE PROVIDE:
- --------------------------------------------------------------------------------
o written confirmation of financial transactions;
o statement of your contract values at the close of each calendar year, and any
calendar quarter in which there was a financial transaction;
o annual statement of your contract values as of the close of the contract
year, including notification of eligibility to exercise the guaranteed
minimum income benefit, if applicable.
- --------------------------------------------------------------------------------
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 investment
options;
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 1-888-909-7770. If you are a client with AXA
Advisors you may use EQAccess by visiting our web site at
http://www.axaonline.com and clicking on EQAccess. All other clients may access
EQAccess by visiting our other web site at http://www.equitable.com. 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 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
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 (1-800-789-7771) to speak with one of our
customer service representatives. Our customer service representatives are
available on any business day from 8:30 a.m. until 5:30 p.m., Eastern Time.
WE REQUIRE THAT THE FOLLOWING TYPES OF COMMUNICATIONS BE ON SPECIFIC FORMS WE
PROVIDE FOR THAT PURPOSE:
(1) authorization for telephone transfers by your financial professional
(available only for contracts distributed through AXA Distributors);
(2) conversion of a traditional IRA to a Roth Conversion IRA or Flexible
Premium Roth IRA contract;
(3) election of the automatic investment program;
6 Who is Equitable Life?
(4) election of the rebalancing program;
(5) requests for loans under Rollover TSA contracts;
(6) spousal consent for loans under Rollover TSA contracts;
(7) requests for withdrawals or surrenders from Rollover TSA contracts;
(8) tax withholding elections;
(9) election of the beneficiary continuation option;
(10) IRA contribution recharacterizations;
(11) certain section 1035 exchanges;
(12) direct transfers; and
(13) exercise of the Guaranteed minimum income benefit.
WE ALSO HAVE SPECIFIC FORMS THAT WE RECOMMEND YOU USE FOR THE FOLLOWING TYPES
OF REQUESTS:
(1) address changes;
(2) beneficiary changes;
(3) transfers between investment options;
(4) contract surrender and withdrawal requests;
(5) death claims;
(6) general dollar cost averaging (including the fixed dollar and interest
sweep options); and
(7) special dollar cost averaging.
TO CANCEL OR CHANGE 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 (including the fixed dollar and interest
sweep options);
(3) rebalancing;
(4) special dollar cost averaging;
(5) substantially equal withdrawals;
(6) systematic withdrawals; and
(7) 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
Equitable Accumulator(R) at a glance -- key features
- --------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
Professional investment Equitable Accumulator's(R) variable investment options invest in different portfolios managed by
management professional investment advisers.
- ------------------------------------------------------------------------------------------------------------------------------------
Fixed maturity options o Fixed maturity options ("FMOs") with maturities ranging from approximately 1 to 10 years (subject to
availability).
o Each fixed maturity option offers a guarantee of principal and interest rate if you hold it to
maturity.
o Special 10 year fixed maturity option (available under Guaranteed principal benefit option 2 only).
-------------------------------------------------------------------------------------------------------
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. If you withdraw or transfer only a
portion of a fixed maturity amount, 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 also applies.
- ------------------------------------------------------------------------------------------------------------------------------------
Guaranteed interest o Principal and interest guarantees.
option
o Interest rates set periodically.
- ------------------------------------------------------------------------------------------------------------------------------------
Account for special dollar Available for dollar cost averaging all or a portion of any eligible contribution to your contract.
cost averaging
- ------------------------------------------------------------------------------------------------------------------------------------
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) or Tax Sheltered
Annuity (TSA), or to fund an employer retirement plan (QP or Qualified Plan), 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 compared 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 and in the SAI.)
- ------------------------------------------------------------------------------------------------------------------------------------
Guaranteed minimum The Guaranteed minimum income benefit provides income protection for you during the annuitant's life
income benefit once the owner elects to annuitize the contract.
- ------------------------------------------------------------------------------------------------------------------------------------
Contribution amounts o NQ, Rollover IRA, Roth Conversion IRA, Inherited IRA, QP and Rollover TSA contracts
o Initial minimum: $5,000
o Additional minimum: $500 (NQ, QP and Rollover TSA contracts)
$100 monthly and $300 quarterly under our automatic investment program
(NQ contracts)
$50 (IRA contracts)
$1000 (Inherited IRA contracts)
-------------------------------------------------------------------------------------------------------
o Flexible Premium IRA and Flexible Premium Roth IRA contracts
o Initial minimum: $2,000
o Additional minimum: $ 50
-------------------------------------------------------------------------------------------------------
Maximum contribution limitations may apply. In general, contributions are limited to $1.5 million
($500,000 for owners or annuitants who are age 81 and older at contract issue).
- ------------------------------------------------------------------------------------------------------------------------------------
8 Equitable Accumulator(R) at a glance -- key features
- ------------------------------------------------------------------------------------------------------------------------------------
Access to your money o Lump sum withdrawals
o Several withdrawal options on a periodic basis
o Loans under Rollover TSA contracts
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 tax penalty.
- ------------------------------------------------------------------------------------------------------------------------------------
Payout options o Fixed annuity payout options
o Variable Immediate Annuity payout options
o Income Manager(R) payout options
- ------------------------------------------------------------------------------------------------------------------------------------
Additional features o Guaranteed minimum death benefit options
o Guaranteed principal benefit options
o Dollar cost averaging
o Automatic investment program
o Account value rebalancing (quarterly, semiannually, and annually)
o Free transfers
o Waiver of withdrawal charge for certain withdrawals, disability, terminal illness, or confinement to a
nursing home
o Protection Plus, an optional death benefit available under certain contracts
o Spousal protection
o Successor owner/annuitant
o Beneficiary continuation option
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Equitable Accumulator(R) at a glance -- key features 9
- ------------------------------------------------------------------------------------------------------------------------------------
Fees and charges o Daily charges on amounts invested in variable investment options for mortality and expense risks,
administrative charges and distribution charges at an annual rate of 1.25%.
o The charges for the Guaranteed minimum death benefits range from 0.0% to 0.60%, annually, of the
applicable benefit base. The benefit base is described under "Your benefit base" in "Contract features and
benefits" later in this Prospectus.
o Annual 0.65% of the applicable benefit base charge for the optional Guaranteed minimum income benefit
until you exercise the benefit, elect another annuity payout or the contract date anniversary after the
annuitant reaches age 85, whichever occurs first.
o An annual charge for the optional Guaranteed principal benefit option 2 deducted on the first 10 contract
date anniversaries equal to 0.50% of the account value.
o If your account value at the end of the contract year is less than $50,000, we deduct an annual
administrative charge equal to $30, or during the first two contract years, 2% of your account value, if
less. If your account value, on the contract date anniversary, is $50,000 or more, we will not deduct the
charge.
o Annual 0.35% Protection Plus charge for this optional death benefit.
o No sales charge deducted at the time you make contributions. During the first seven contract years
following a contribution, a charge of up to 7% will be deducted from amounts that you withdraw that exceed
10% of your account value. We use the account value at the beginning of each contract year to calculate the
10% amount available. There is no withdrawal charge in the eighth and later contract years following a
contribution. Certain other exemptions may 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 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." For example, if your contract date is May 1, your contract date
anniversary is April 30.
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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. This 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 the Variable Immediate Annuity
payout options.
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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 0.10% to 1.50% annually,
12b-1 fees of either 0.25% or 0.35% annually and other expenses. In addition each AXA Allocation Portfolio
will invest in shares of other Portfolios of the EQ Advisors Trust and AXA Premier VIP Trust (the
"Underlying Portfolios").
- ------------------------------------------------------------------------------------------------------------------------------------
Annuitant issue ages NQ: 0-85
Rollover IRA, Roth Conversion IRA, Flexible Premium Roth IRA and Rollover TSA: 20-85
Flexible Premium IRA: 20-70
Inherited IRA: 0-70
QP: 20-75
- ------------------------------------------------------------------------------------------------------------------------------------
The above is not a complete description of all material provisions of the
contract. In some cases, restrictions or exceptions apply. Also, all features
of the contract are not necessarily available in your state or at certain ages.
Please see Appendix VII later in this Prospectus for more information on state
availability and/or variations of certain features and benefits.
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, credits, fees and/or charges that are
different from those in the contracts 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 Equitable Accumulator(R) at a glance -- key features
Fee table
- --------------------------------------------------------------------------------
The following tables describe the fees and expenses that you will pay when
buying, owning, and surrendering the contract. Each of the charges and expenses
is more fully described in "Charges and expenses" later in this Prospectus.
The first table describes fees and expenses that you will pay at the time that
you surrender the contract or if you make certain withdrawals or apply your
cash to certain payout options or if you purchase a Variable Immediate Annuity
payout option. Charges designed to approximate certain taxes that may be
imposed on us, such as premium taxes in your state, may also apply. Charges for
certain features shown in the fee table are mutually exclusive.
- ------------------------------------------------------------------------------------------------------------------------------------
Charges we deduct from your account value at the time you request certain ransactions
- ------------------------------------------------------------------------------------------------------------------------------------
Maximum withdrawal charge as a percentage of contributions with-
drawn (deducted if you surrender your contract or make certain
withdrawals or apply your cash value to certain payout options).(1) 7.00%
Charge if you elect a Variable Immediate Annuity payout option $350
The next table describes the fees and expenses that you will pay periodically
during the time that you own the contract, not including the underlying trust
portfolio fees and expenses.
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Charges we deduct from your variable investment options expressed as an annual percentage of daily net assets
- ------------------------------------------------------------------------------------------------------------------------------------
Mortality and expense risks 0.75%
Administrative 0.30%
Distribution 0.20%
----
Total annual expenses 1.25%
- ------------------------------------------------------------------------------------------------------------------------------------
Charges we deduct from your account value on each contract date anniversary
- ------------------------------------------------------------------------------------------------------------------------------------
Maximum annual administrative charge(3)
If your account value on a contract date anniversary is less than
$50,000(2) $ 30
If your account value on a contract date anniversary is $50,000
or more $ 0
- ------------------------------------------------------------------------------------------------------------------------------------
Charges we deduct from your account value each year if you elect the optional benefit
- ------------------------------------------------------------------------------------------------------------------------------------
Guaranteed minimum death benefit charge (calculated as a
percentage of the applicable benefit base. Deducted annually(3) on
each contract date anniversary for which the benefit is in effect).
Standard death benefit 0.00%
Annual Ratchet to age 85 0.25% of the Annual Ratchet to age 85 benefit base
Greater of 6% Roll up to age 85 or Annual Ratchet to age 85 0.60% of the greater of 6% Roll up to age 85
benefit base or the
Annual Ratchet to age 85 benefit base, as
applicable
- ------------------------------------------------------------------------------------------------------------------------------------
Guaranteed principal benefit charge for option 2 (calculated as
a percentage of the account value. Deducted annually(3) on the first 10
contract date anniversaries) 0.50%
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Guaranteed minimum income benefit charge (calculated as a
percentage of the applicable benefit base. Deducted annually(3) on each
contract date anniversary for which the benefit is in effect) 0.65%
- ------------------------------------------------------------------------------------------------------------------------------------
Protection Plus benefit charge (calculated as a percentage of the
account value. Deducted annually(3) on each contract date anniversary
for which the benefit is in effect) 0.35%
- ------------------------------------------------------------------------------------------------------------------------------------
Fee table 11
Net loan interest charge - Rollover TSA contracts only (calcu-
lated and deducted daily as a percentage of the outstanding loan
amount) 2.00%(4)
- ------------------------------------------------------------------------------------------------------------------------------------
You also bear your proportionate share of all fees and expenses paid by a
"Portfolio" that corresponds to any variable investment option you are using.
This table shows the lowest and highest total operating expenses charged by any
of the Portfolios that you will pay periodically during the time that you own
the contract. These fees and expenses are reflected in the Portfolio's net
asset value each day. Therefore, they reduce the investment return of the
Portfolio and the related variable investment option. Actual fees and expenses
are likely to fluctuate from year to year. More detail concerning each
Portfolio's fees and expenses is contained in the Trust prospectus for the
Portfolio.
- ------------------------------------------------------------------------------------------------------------------------------------
Portfolio operating expenses expressed as an annual percentage of daily net assets
- ------------------------------------------------------------------------------------------------------------------------------------
Total Annual Portfolio Operating Expenses for 2003 (expenses that are deducted Lowest Highest
from Portfolio assets including management fees, 12b-1 fees, service fees, and/or ---- -----
other expenses)(5) 0.56% 10.23%
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This table shows the fees and expenses for 2003 as an annual percentage of each
Portfolio's daily average net assets.
- ------------------------------------------------------------------------------------------------------------------------------------
Total Net Total
Annual Fee Waiv- Annual
Underlying Expenses ers and/or Expenses
Manage- Portfolio (Before Expense After
ment 12b-1 Other Fees and Expense Reimburse- Expense
Portfolio Name Fees(6) Fees(7) Expenses (8) Expenses(9) Limitation) ments(10) Limitations
- ------------------------------------------------------------------------------------------------------------------------------------
AXA PREMIER VIP TRUST:
- ------------------------------------------------------------------------------------------------------------------------------------
AXA Aggressive Allocation 0.10% 0.25% 5.91% 1.08% 7.34% (5.98)% 1.36%
AXA Conservative Allocation 0.10% 0.25% 9.04% 0.84% 10.23% (9.13)% 1.10%
AXA Conservative-Plus Allocation 0.10% 0.25% 4.13% 0.88% 5.36% (4.21)% 1.15%
AXA Moderate Allocation 0.10% 0.25% 0.39% 0.86% 1.60% (0.43)% 1.17%
AXA Moderate-Plus Allocation 0.10% 0.25% 1.77% 1.13% 3.25% (1.87)% 1.38%
AXA Premier VIP Aggressive Equity 0.62% 0.25% 0.15% -- 1.02% -- 1.02%
AXA Premier VIP Core Bond 0.60% 0.25% 0.26% -- 1.11% (0.16)% 0.95%
AXA Premier VIP Health Care 1.20% 0.25% 0.48% -- 1.93% (0.08)% 1.85%
AXA Premier VIP High Yield 0.59% 0.25% 0.16% -- 1.00% -- 1.00%
AXA Premier VIP International Equity 1.05% 0.25% 0.73% -- 2.03% (0.23)% 1.80%
AXA Premier VIP Large Cap Core Equity 0.90% 0.25% 0.52% -- 1.67% (0.32)% 1.35%
AXA Premier VIP Large Cap Growth 0.90% 0.25% 0.43% -- 1.58% (0.23)% 1.35%
AXA Premier VIP Large Cap Value 0.90% 0.25% 0.43% -- 1.58% (0.23)% 1.35%
AXA Premier VIP Small/Mid Cap Growth 1.10% 0.25% 0.35% -- 1.70% (0.10)% 1.60%
AXA Premier VIP Small/Mid Cap Value 1.10% 0.25% 0.31% -- 1.66% (0.06)% 1.60%
AXA Premier VIP Technology 1.20% 0.25% 0.83% -- 2.28% (0.43)% 1.85%
- ------------------------------------------------------------------------------------------------------------------------------------
EQ ADVISORS TRUST:
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/Alliance Common Stock 0.48% 0.25% 0.06% -- 0.79% -- 0.79%
EQ/Alliance Growth and Income 0.57% 0.25% 0.06% -- 0.88% -- 0.88%
EQ/Alliance Intermediate 0.49% 0.25% 0.08% -- 0.82% -- 0.82%
Government Securities
EQ/Alliance International 0.74% 0.25% 0.13% -- 1.12% (0.02)% 1.10%
EQ/Alliance Premier Growth 0.90% 0.25% 0.05% -- 1.20% (0.04)% 1.16%
EQ/Alliance Quality Bond 0.52% 0.25% 0.06% -- 0.83% -- 0.83%
EQ/Alliance Small Cap Growth 0.75% 0.25% 0.07% -- 1.07% -- 1.07%
EQ/Bernstein Diversified Value 0.64% 0.25% 0.06% -- 0.95% 0.00% 0.95%
EQ/Calvert Socially Responsible 0.65% 0.25% 0.55% -- 1.45% (0.40)% 1.05%
EQ/Capital Guardian International 0.85% 0.25% 0.21% -- 1.31% (0.11)% 1.20%
EQ/Capital Guardian Research 0.65% 0.25% 0.07% -- 0.97% (0.02)% 0.95%
EQ/Capital Guardian U.S. Equity 0.65% 0.25% 0.07% -- 0.97% (0.02)% 0.95%
EQ/Emerging Markets Equity 1.15% 0.25% 0.40% -- 1.80% 0.00% 1.80%
EQ/Equity 500 Index 0.25% 0.25% 0.06% -- 0.56% -- 0.56%
EQ/Evergreen Omega 0.65% 0.25% 0.25% -- 1.15% (0.20)% 0.95%
EQ/FI Mid Cap 0.70% 0.25% 0.08% -- 1.03% (0.03)% 1.00%
EQ/FI Small/Mid Cap Value 0.75% 0.25% 0.10% -- 1.10% 0.00% 1.10%
EQ/Janus Large Cap Growth 0.90% 0.25% 0.09% -- 1.24% (0.09)% 1.15%
EQ/J.P. Morgan Core Bond 0.44% 0.25% 0.08% -- 0.77% 0.00% 0.77%
EQ/Lazard Small Cap Value 0.75% 0.25% 0.10% -- 1.10% 0.00% 1.10%
- ------------------------------------------------------------------------------------------------------------------------------------
12 Fee table
This table shows the fees and expenses for 2003 as an annual percentage of each
Portfolio's daily average net assets.
- ------------------------------------------------------------------------------------------------------------------------------------
Total Net Total
Annual Fee Waiv- Annual
Underlying Expenses ers and/or Expenses
Manage- Portfolio (Before Expense After
ment 12b-1 Other Fees and Expense Reimburse- Expense
Portfolio Name Fees(6) Fees(7) Expenses (8) Expenses(9) Limitation) ments(10) Limitations
- ------------------------------------------------------------------------------------------------------------------------------------
EQ ADVISORS TRUST:
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/Marsico Focus 0.90% 0.25% 0.07% -- 1.22% (0.07)% 1.15%
EQ/Mercury Basic Value Equity 0.60% 0.25% 0.07% -- 0.92% 0.00% 0.92%
EQ/Mercury International Value 0.85% 0.25% 0.16% -- 1.26% (0.01)% 1.25%
EQ/MFS Emerging Growth Companies 0.65% 0.25% 0.07% -- 0.97% -- 0.97%
EQ/MFS Investors Trust 0.60% 0.25% 0.11% -- 0.96% (0.01)% 0.95%
EQ/Money Market 0.33% 0.25% 0.06% -- 0.64% -- 0.64%
EQ/Putnam Growth & Income Value 0.60% 0.25% 0.10% -- 0.95% 0.00% 0.95%
EQ/Putnam Voyager 0.65% 0.25% 0.13% -- 1.03% (0.08)% 0.95%
EQ/Small Company Index 0.25% 0.25% 0.35% -- 0.85% 0.00% 0.85%
EQ/Technology 0.90% 0.25% 0.09% -- 1.24% (0.09)% 1.15%
- ------------------------------------------------------------------------------------------------------------------------------------
BARR ROSENBERG VARIABLE INSURANCE TRUST:
- ------------------------------------------------------------------------------------------------------------------------------------
Laudus Rosenberg VIT Value 1.50% 0.25% 5.80% -- 7.55% (4.57)% 2.98%
Long/Short Equity
- ------------------------------------------------------------------------------------------------------------------------------------
THE UNIVERSAL INSTITUTIONAL FUNDS, INC.:
- ------------------------------------------------------------------------------------------------------------------------------------
U.S. Real Estate -- Class II 0.80% 0.35% 0.31% -- 1.46% (0.11)% 1.35%
- ------------------------------------------------------------------------------------------------------------------------------------
(1) Deducted upon a withdrawal of amounts in excess of the 10% free
withdrawal amount, if applicable:
The withdrawal charge percentage we use is determined by the contract year in Contract
which you make the withdrawal or surrender your contract. For each contribution, Year
we consider the contract year in which we receive that contribution to be "contract 1..................................7.00%
year 1") 2..................................7.00%
3..................................6.00%
4..................................6.00%
5..................................5.00%
6..................................3.00%
7..................................1.00%
8+.................................0.00%
(2) During the first two contract years this charge, if it applies, is equal
to the lesser of $30 or 2% of your account value. Thereafter, the charge is
$30 for each contract year.
(3) If the contract is surrendered or annuitized or a death benefit is paid
on any date other than the contract date anniversary, we will deduct a pro
rata portion of the charge for that year.
(4) We charge interest on loans under Rollover TSA contracts but also credit
you interest on your loan reserve account. Our net loan interest charge is
determined by the excess between the interest rate we charge over the
interest rate we credit. See "Loans under Rollover TSA contracts" later in
this Prospectus for more information on how the loan interest is calculated
and for restrictions that may apply.
(5) "Total Annual Portfolio Operating Expenses" are based, in part, on
estimated amounts for options added during the fiscal year 2003 and for the
underlying portfolios.
(6) 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.
(7) 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.
(8) Other expenses shown are those incurred in 2003. The amounts shown as
"Other Expenses" will fluctuate from year to year depending on actual
expenses. See footnote (10) for any expense limitation agreement.
(9) The AXA Allocation variable investment options invest in corresponding
portfolios of the AXA Premier VIP Trust. Each AXA Allocation portfolio in
turn invests in shares of other portfolios of the EQ Advisors Trust and AXA
Premier VIP Trust ("the underlying portfolios"). Amounts shown reflect each
AXA Allocation portfolio's pro rata share of the fees and expenses of the
various underlying portfolios in which it invests. The fees and expenses
have been estimated based on the respective weighted investment allocations
as of 12/31/03. A "-" indicates that the listed portfolio does not invest
in underlying portfolios, i.e., it is not an allocation portfolio.
(10) The amounts shown reflect any fee waivers and/or expense reimbursements
that applied to each Portfolio. A "-" indicates that there is no expense
limitation in effect. "0.00%" indicates that the expense limitation
arrangement did not result in a fee waiver or reimbursement. Equitable
Life, the investment manager of AXA Premier VIP Trust and EQ Advisors
Trust, has entered into Expense Limitation Agreements with respect to
certain Portfolios, which are effective through April 30, 2005. Under these
agreements Equitable Life has agreed to waive or limit its fees and assume
other expenses of certain Portfolios, if necessary, in an amount that
limits each affected Portfolio's total Annual Expenses (exclusive of
interest, taxes, brokerage commissions, capitalized expenditures and
extraordinary expenses) to not more than specified amounts. Therefore 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. Morgan
Stanley Investment Management Inc., which does business in certain
instances as "Van Kampen," is the manager of the Universal Institutional
Funds, Inc. -- U.S. Real Estate Portfolio -- Class II and has voluntarily
agreed to reduce its management fee and/or reimburse the Portfolio so that
total annual operating expenses of the Portfolio (exclusive of investment
related expenses, such as foreign country tax expense and interest expense
on amounts borrowed) are not more than specified amounts. Van Kampen
reserves the right to terminate any waiver and/or reimbursement at any time
without notice. Charles Schwab Investment Management, Inc. the manager of
the Barr Rosenberg Variable Insurance Trust -- Laudus Rosenberg VIT Value
Long/Short Equity Portfolio, has voluntarily agreed to reimburse expenses
in excess of specified amounts." See the prospectus for each applicable
Fee table 13
underlying Trust for more information about the arrangements. In addition,
a portion of the brokerage commissions of certain Portfolios of EQ Advisors
Trust Portfolio and AXA Premier VIP Trust Portfolio is used to reduce the
applicable Portfolio's expenses. If the above table reflected both the
expense limitation arrangements plus the portion of the brokerage
commissions used to reduce portfolio expenses, the net expenses would be as
shown in the table below:
- ------------------------------------------------
Portfolio Name
- ------------------------------------------------
AXA Aggressive Allocation 0.95%
- ------------------------------------------------
AXA Conservative Allocation 0.73%
- ------------------------------------------------
AXA Conservative-Plus Allocation 0.78%
- ------------------------------------------------
AXA Moderate Allocation 0.79%
- ------------------------------------------------
AXA Moderate-Plus Allocation 0.99%
- ------------------------------------------------
AXA Premier VIP Aggressive Equity 0.95%
- ------------------------------------------------
AXA Premier VIP Health Care 1.84%
- ------------------------------------------------
AXA Premier VIP International Equity 1.73%
- ------------------------------------------------
AXA Premier VIP Large Cap Core Equity 1.32%
- ------------------------------------------------
AXA Premier VIP Large Cap Growth 1.32%
- ------------------------------------------------
AXA Premier VIP Large Cap Value 1.28%
- ------------------------------------------------
AXA Premier VIP Small/Mid Cap Growth 1.46%
- ------------------------------------------------
AXA Premier VIP Small/Mid Cap Value 1.52%
- ------------------------------------------------
AXA Premier VIP Technology 1.70%
- ------------------------------------------------
EQ/Alliance Common Stock 0.77%
- ------------------------------------------------
EQ/Alliance Growth and Income 0.85%
- ------------------------------------------------
EQ/Alliance Premier Growth 1.15%
- ------------------------------------------------
EQ/Alliance Small Cap Growth 1.03%
- ------------------------------------------------
EQ/Calvert Socially Responsible 1.00%
- ------------------------------------------------
EQ/Capital Guardian International 1.18%
- ------------------------------------------------
EQ/Capital Guardian Research 0.93%
- ------------------------------------------------
EQ/Capital Guardian U.S. Equity 0.93%
- ------------------------------------------------
EQ/Emerging Markets Equity 1.78%
- ------------------------------------------------
EQ/Evergreen Omega 0.84%
- ------------------------------------------------
EQ/FI Mid Cap 0.88%
- ------------------------------------------------
EQ/FI Small/Mid Cap Value 1.04%
- ------------------------------------------------
EQ/Lazard Small Cap Value 1.00%
- ------------------------------------------------
EQ/Marsico Focus 1.10%
- ------------------------------------------------
EQ/Mercury Basic Value Equity 0.91%
- ------------------------------------------------
EQ/Mercury International Value 1.18%
- ------------------------------------------------
EQ/MFS Emerging Growth Companies 0.96%
- ------------------------------------------------
EQ/MFS Investors Trust 0.94%
- ------------------------------------------------
EQ/Putnam Growth & Income Value 0.93%
- ------------------------------------------------
EQ/Putnam Voyager 0.93%
- ------------------------------------------------
EQ/Technology 1.01%
- ------------------------------------------------
EXAMPLE
This example is intended to help you compare the cost of investing in the
contract with the cost of investing in other variable annuity contracts. These
costs include contract owner transaction expenses, contract fees, separate
account annual expenses, and underlying trust fees and expenses (including the
underlying portfolio fees and expenses).
The example below shows the expenses that a hypothetical contract owner (who
has elected the Guaranteed minimum income benefit with the enhanced death
benefit that provides for the greater of the 6% Roll up to age 85 or the Annual
Ratchet to age 85 and Protection Plus) would pay in the situations illustrated.
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 $2.10 per $10,000.
The fixed maturity options, guaranteed interest option and the account for
special dollar cost averaging are not covered by the examples. However, the
annual administrative charge, the withdrawal charge, the charge for any
optional benefits and the charge if you elect a Variable Immediate Annuity
payout option do apply to the fixed maturity options, guaranteed interest
option and the account for special dollar cost averaging. 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.
The example assumes that you invest $10,000 in the contract for the time
periods indicated. The example also assumes that your investment has a 5%
return each year. This example 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 example
is not an estimate or guarantee of future investment performance. Although your
actual costs may be higher or lower, based on these assumptions, your costs
would be:
14 Fee table
- ------------------------------------------------------------------------------------------------------------
If you surrender your contract at the end
of the applicable time period
-----------------------------------------------------------
Portfolio Name 1 year 3 years 5 years 10 years
- ------------------------------------------------------------------------------------------------------------
AXA PREMIER VIP TRUST:
- ------------------------------------------------------------------------------------------------------------
AXA Aggressive Allocation $ 1,773.57 $ 3,684.74 $ 5,428.25 $ 8,900.13
AXA Conservative Allocation $ 2,076.53 $ 4,433.90 $ 6,444.96 $ 10,020.44
AXA Conservative-Plus Allocation $ 1,565.45 $ 3,140.37 $ 4,644.06 $ 7,867.70
AXA Moderate Allocation $ 1,171.02 $ 2,040.07 $ 2,946.68 $ 5,140.80
AXA Moderate-Plus Allocation $ 1,344.14 $ 2,534.22 $ 3,727.25 $ 6,477.79
AXA Premier VIP Aggressive Equity $ 1,109.75 $ 1,860.91 $ 2,656.44 $ 4,607.91
AXA Premier VIP Core Bond $ 1,119.20 $ 1,888.68 $ 2,701.68 $ 4,692.25
AXA Premier VIP Health Care $ 1,205.28 $ 2,139.27 $ 3,105.74 $ 5,424.62
AXA Premier VIP High Yield $ 1,107.65 $ 1,854.73 $ 2,646.36 $ 4,589.06
AXA Premier VIP International Equity $ 1,215.77 $ 2,169.53 $ 3,154.01 $ 5,509.62
AXA Premier VIP Large Cap Core Equity $ 1,177.98 $ 2,060.29 $ 2,979.20 $ 5,199.30
AXA Premier VIP Large Cap Growth $ 1,168.53 $ 2,032.85 $ 2,935.06 $ 5,119.84
AXA Premier VIP Large Cap Value $ 1,168.53 $ 2,032.85 $ 2,935.06 $ 5,119.84
AXA Premier VIP Small/Mid Cap Growth $ 1,181.13 $ 2,069.43 $ 2,993.88 $ 5,225.62
AXA Premier VIP Small/Mid Cap Value $ 1,176.93 $ 2,057.25 $ 2,974.31 $ 5,190.51
AXA Premier VIP Technology $ 1,242.02 $ 2,244.88 $ 3,273.78 $ 5,718.16
- ------------------------------------------------------------------------------------------------------------
EQ ADVISORS TRUST:
- ------------------------------------------------------------------------------------------------------------
EQ/Alliance Common Stock $ 1,085.60 $ 1,789.69 $ 2,540.01 $ 4,388.70
EQ/Alliance Growth and Income $ 1,095.05 $ 1,817.60 $ 2,585.71 $ 4,475.11
EQ/Alliance Intermediate Government Securities $ 1,088.75 $ 1,799.00 $ 2,555.26 $ 4,417.60
EQ/Alliance International $ 1,120.25 $ 1,891.77 $ 2,706.70 $ 4,701.57
EQ/Alliance Premier Growth $ 1,128.64 $ 1,916.40 $ 2,746.75 $ 4,775.79
EQ/Alliance Quality Bond $ 1,089.80 $ 1,802.10 $ 2,560.34 $ 4,427.21
EQ/Alliance Small Cap Growth $ 1,115.00 $ 1,876.35 $ 2,681.60 $ 4,654.86
EQ/Bernstein Diversified Value $ 1,102.40 $ 1,839.27 $ 2,621.13 $ 4,541.76
EQ/Calvert Socially Responsible $ 1,154.89 $ 1,993.12 $ 2,870.99 $ 5,003.70
EQ/Capital Guardian International $ 1,140.19 $ 1,950.21 $ 2,801.58 $ 4,876.81
EQ/Capital Guardian Research $ 1,104.50 $ 1,845.46 $ 2,631.23 $ 4,560.71
EQ/Capital Guardian U.S. Equity $ 1,104.50 $ 1,845.46 $ 2,631.23 $ 4,560.71
EQ/Emerging Markets Equity $ 1,191.63 $ 2,099.84 $ 3,042.65 $ 5,312.75
EQ/Equity 500 Index $ 1,061.46 $ 1,718.12 $ 2,422.39 $ 4,164.13
EQ/Evergreen Omega $ 1,123.39 $ 1,901.01 $ 2,721.73 $ 4,729.47
EQ/FI Mid Cap $ 1,110.80 $ 1,864.00 $ 2,661.48 $ 4,617.32
EQ/FI Small/Mid Cap Value $ 1,118.15 $ 1,885.60 $ 2,696.67 $ 4,682.92
EQ/J.P. Morgan Core Bond $ 1,083.50 $ 1,783.48 $ 2,529.83 $ 4,369.39
EQ/Janus Large Cap Growth $ 1,132.84 $ 1,928.71 $ 2,766.72 $ 4,812.66
EQ/Lazard Small Cap Value $ 1,118.15 $ 1,885.60 $ 2,696.67 $ 4,682.92
EQ/Marsico Focus $ 1,130.74 $ 1,922.56 $ 2,756.74 $ 4,794.24
EQ/Mercury Basic Value Equity $ 1,099.25 $ 1,829.99 $ 2,605.96 $ 4,513.26
EQ/Mercury International Value $ 1,134.94 $ 1,934.85 $ 2,776.69 $ 4,831.04
EQ/MFS Emerging Growth Companies $ 1,104.50 $ 1,845.46 $ 2,631.23 $ 4,560.71
- ------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------
If you annuitize at the end
of the applicable time period
-----------------------------------------------------------
Portfolio Name 1 year 3 years 5 years 10 years
- ------------------------------------------------------------------------------------------------------------
AXA PREMIER VIP TRUST:
- ------------------------------------------------------------------------------------------------------------
AXA Aggressive Allocation $ 1,423.57 $ 3,434.74 $ 5,278.25 $ 9,250.13
AXA Conservative Allocation $ 1,726.53 $ 4,183.90 $ 6,294.96 $ 10,370.44
AXA Conservative-Plus Allocation $ 1,215.45 $ 2,890.37 $ 4,494.06 $ 8,217.70
AXA Moderate Allocation $ 821.02 $ 1,790.07 $ 2,796.68 $ 5,490.80
AXA Moderate-Plus Allocation $ 994.14 $ 2,284.22 $ 3,577.25 $ 6,827.79
AXA Premier VIP Aggressive Equity $ 759.75 $ 1,610.91 $ 2,506.44 $ 4,957.91
AXA Premier VIP Core Bond $ 769.20 $ 1,638.68 $ 2,551.68 $ 5,042.25
AXA Premier VIP Health Care $ 855.28 $ 1,889.27 $ 2,955.74 $ 5,774.62
AXA Premier VIP High Yield $ 757.65 $ 1,604.73 $ 2,496.36 $ 4,939.06
AXA Premier VIP International Equity $ 865.77 $ 1,919.53 $ 3,004.01 $ 5,859.62
AXA Premier VIP Large Cap Core Equity $ 827.98 $ 1,810.29 $ 2,829.20 $ 5,549.30
AXA Premier VIP Large Cap Growth $ 818.53 $ 1,782.85 $ 2,785.06 $ 5,469.84
AXA Premier VIP Large Cap Value $ 818.53 $ 1,782.85 $ 2,785.06 $ 5,469.84
AXA Premier VIP Small/Mid Cap Growth $ 831.13 $ 1,819.43 $ 2,843.88 $ 5,575.62
AXA Premier VIP Small/Mid Cap Value $ 826.93 $ 1,807.25 $ 2,824.31 $ 5,540.51
AXA Premier VIP Technology $ 892.02 $ 1,994.88 $ 3,123.78 $ 6,068.16
- ------------------------------------------------------------------------------------------------------------
EQ ADVISORS TRUST:
- ------------------------------------------------------------------------------------------------------------
EQ/Alliance Common Stock $ 735.60 $ 1,539.69 $ 2,390.01 $ 4,738.70
EQ/Alliance Growth and Income $ 745.05 $ 1,567.60 $ 2,435.71 $ 4,825.11
EQ/Alliance Intermediate Government Securities $ 738.75 $ 1,549.00 $ 2,405.26 $ 4,767.60
EQ/Alliance International $ 770.25 $ 1,641.77 $ 2,556.70 $ 5,051.57
EQ/Alliance Premier Growth $ 778.64 $ 1,666.40 $ 2,596.75 $ 5,125.79
EQ/Alliance Quality Bond $ 739.80 $ 1,552.10 $ 2,410.34 $ 4,777.21
EQ/Alliance Small Cap Growth $ 765.00 $ 1,626.35 $ 2,531.60 $ 5,004.86
EQ/Bernstein Diversified Value $ 752.40 $ 1,589.27 $ 2,471.13 $ 4,891.76
EQ/Calvert Socially Responsible $ 804.89 $ 1,743.12 $ 2,720.99 $ 5,353.70
EQ/Capital Guardian International $ 790.19 $ 1,700.21 $ 2,651.58 $ 5,226.81
EQ/Capital Guardian Research $ 754.50 $ 1,595.46 $ 2,481.23 $ 4,910.71
EQ/Capital Guardian U.S. Equity $ 754.50 $ 1,595.46 $ 2,481.23 $ 4,910.71
EQ/Emerging Markets Equity $ 841.63 $ 1,849.84 $ 2,892.65 $ 5,662.75
EQ/Equity 500 Index $ 711.46 $ 1,468.12 $ 2,272.39 $ 4,514.13
EQ/Evergreen Omega $ 773.39 $ 1,651.01 $ 2,571.73 $ 5,079.47
EQ/FI Mid Cap $ 760.80 $ 1,614.00 $ 2,511.48 $ 4,967.32
EQ/FI Small/Mid Cap Value $ 768.15 $ 1,635.60 $ 2,546.67 $ 5,032.92
EQ/J.P. Morgan Core Bond $ 733.50 $ 1,533.48 $ 2,379.83 $ 4,719.39
EQ/Janus Large Cap Growth $ 782.84 $ 1,678.71 $ 2,616.72 $ 5,162.66
EQ/Lazard Small Cap Value $ 768.15 $ 1,635.60 $ 2,546.67 $ 5,032.92
EQ/Marsico Focus $ 780.74 $ 1,672.56 $ 2,606.74 $ 5,144.24
EQ/Mercury Basic Value Equity $ 749.25 $ 1,579.99 $ 2,455.96 $ 4,863.26
EQ/Mercury International Value $ 784.94 $ 1,684.85 $ 2,626.69 $ 5,181.04
EQ/MFS Emerging Growth Companies $ 754.50 $ 1,595.46 $ 2,481.23 $ 4,910.71
- ------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------
If you do not surrender your contract at the end
of the applicable time period
-----------------------------------------------------------
Portfolio Name 1 year 3 years 5 years 10 years
- ------------------------------------------------------------------------------------------------------------
AXA PREMIER VIP TRUST:
- ------------------------------------------------------------------------------------------------------------
AXA Aggressive Allocation $ 1,073.57 $ 3,084.74 $ 4,928.25 $ 8,900.13
AXA Conservative Allocation $ 1,376.53 $ 3,833.90 $ 5,944.96 $ 10,020.44
AXA Conservative-Plus Allocation $ 865.45 $ 2,540.37 $ 4,144.06 $ 7,867.70
AXA Moderate Allocation $ 471.02 $ 1,440.07 $ 2,446.68 $ 5,140.80
AXA Moderate-Plus Allocation $ 644.14 $ 1,934.22 $ 3,227.25 $ 6,477.79
AXA Premier VIP Aggressive Equity $ 409.75 $ 1,260.91 $ 2,156.44 $ 4,607.91
AXA Premier VIP Core Bond $ 419.20 $ 1,288.68 $ 2,201.68 $ 4,692.25
AXA Premier VIP Health Care $ 505.28 $ 1,539.27 $ 2,605.74 $ 5,424.62
AXA Premier VIP High Yield $ 407.65 $ 1,254.73 $ 2,146.36 $ 4,589.06
AXA Premier VIP International Equity $ 515.77 $ 1,569.53 $ 2,654.01 $ 5,509.62
AXA Premier VIP Large Cap Core Equity $ 477.98 $ 1,460.29 $ 2,479.20 $ 5,199.30
AXA Premier VIP Large Cap Growth $ 468.53 $ 1,432.85 $ 2,435.06 $ 5,119.84
AXA Premier VIP Large Cap Value $ 468.53 $ 1,432.85 $ 2,435.06 $ 5,119.84
AXA Premier VIP Small/Mid Cap Growth $ 481.13 $ 1,469.43 $ 2,493.88 $ 5,225.62
AXA Premier VIP Small/Mid Cap Value $ 476.93 $ 1,457.25 $ 2,474.31 $ 5,190.51
AXA Premier VIP Technology $ 542.02 $ 1,644.88 $ 2,773.78 $ 5,718.16
- ------------------------------------------------------------------------------------------------------------
EQ ADVISORS TRUST:
- ------------------------------------------------------------------------------------------------------------
EQ/Alliance Common Stock $ 385.60 $ 1,189.69 $ 2,040.01 $ 4,388.70
EQ/Alliance Growth and Income $ 395.05 $ 1,217.60 $ 2,085.71 $ 4,475.11
EQ/Alliance Intermediate Government Securities $ 388.75 $ 1,199.00 $ 2,055.26 $ 4,417.60
EQ/Alliance International $ 420.25 $ 1,291.77 $ 2,206.70 $ 4,701.57
EQ/Alliance Premier Growth $ 428.64 $ 1,316.40 $ 2,246.75 $ 4,775.79
EQ/Alliance Quality Bond $ 389.80 $ 1,202.10 $ 2,060.34 $ 4,427.21
EQ/Alliance Small Cap Growth $ 415.00 $ 1,276.35 $ 2,181.60 $ 4,654.86
EQ/Bernstein Diversified Value $ 402.40 $ 1,239.27 $ 2,121.13 $ 4,541.76
EQ/Calvert Socially Responsible $ 454.89 $ 1,393.12 $ 2,370.99 $ 5,003.70
EQ/Capital Guardian International $ 440.19 $ 1,350.21 $ 2,301.58 $ 4,876.81
EQ/Capital Guardian Research $ 404.50 $ 1,245.46 $ 2,131.23 $ 4,560.71
EQ/Capital Guardian U.S. Equity $ 404.50 $ 1,245.46 $ 2,131.23 $ 4,560.71
EQ/Emerging Markets Equity $ 491.63 $ 1,499.84 $ 2,542.65 $ 5,312.75
EQ/Equity 500 Index $ 361.46 $ 1,118.12 $ 1,922.39 $ 4,164.13
EQ/Evergreen Omega $ 423.39 $ 1,301.01 $ 2,221.73 $ 4,729.47
EQ/FI Mid Cap $ 410.80 $ 1,264.00 $ 2,161.48 $ 4,617.32
EQ/FI Small/Mid Cap Value $ 418.15 $ 1,285.60 $ 2,196.67 $ 4,682.92
EQ/J.P. Morgan Core Bond $ 383.50 $ 1,183.48 $ 2,029.83 $ 4,369.39
EQ/Janus Large Cap Growth $ 432.84 $ 1,328.71 $ 2,266.72 $ 4,812.66
EQ/Lazard Small Cap Value $ 418.15 $ 1,285.60 $ 2,196.67 $ 4,682.92
EQ/Marsico Focus $ 430.74 $ 1,322.56 $ 2,256.74 $ 4,794.24
EQ/Mercury Basic Value Equity $ 399.25 $ 1,229.99 $ 2,105.96 $ 4,513.26
EQ/Mercury International Value $ 434.94 $ 1,334.85 $ 2,276.69 $ 4,831.04
EQ/MFS Emerging Growth Companies $ 404.50 $ 1,245.46 $ 2,131.23 $ 4,560.71
- ------------------------------------------------------------------------------------------------------------
Fee table 15
- ------------------------------------------------------------------------------------------------------------
If you surrender your contract at the end
of the applicable time period
-------------------------------------------------------------
Portfolio Name 1 year 3 years 5 years 10 years
- ------------------------------------------------------------------------------------------------------------
EQ ADVISORS TRUST:
- -----------------------------------------------------------------------------------------------------------
EQ/MFS Investors Trust $ 1,103.45 $ 1,842.37 $ 2,626.18 $ 4,551.24
EQ/Money Market $ 1,069.86 $ 1,743.05 $ 2,463.44 $ 4,242.86
EQ/Putnam Growth & Income Value $ 1,102.40 $ 1,839.27 $ 2,621.13 $ 4,541.76
EQ/Putnam Voyager $ 1,110.80 $ 1,864.00 $ 2,661.48 $ 4,617.32
EQ/Small Company Index $ 1,091.90 $ 1,808.30 $ 2,570.49 $ 4,446.40
EQ/Technology $ 1,132.84 $ 1,928.71 $ 2,766.72 $ 4,812.66
- ------------------------------------------------------------------------------------------------------------
BARR ROSENBERG VARIABLE INSURANCE TRUST:
- ------------------------------------------------------------------------------------------------------------
Laudus Rosenberg VIT Value Long/Short Equity $ 1,795.25 $ 3,740.05 $ 5,505.80 $ 8,994.32
- ------------------------------------------------------------------------------------------------------------
THE UNIVERSAL INSTITUTIONAL FUNDS, INC.:
- ------------------------------------------------------------------------------------------------------------
U.S. Real Estate -- Class II $ 1,155.94 $ 1,996.18 $ 2,875.94 $ 5,012.69
- ------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------
If you annuitize at the end
of the applicable time period
-------------------------------------------------------------
Portfolio Name 1 year 3 years 5 years 10 years
- ------------------------------------------------------------------------------------------------------------
EQ ADVISORS TRUST:
EQ/MFS Investors Trust $ 753.45 $ 1,592.37 $ 2,476.18 $ 4,901.24
EQ/Money Market $ 719.86 $ 1,493.05 $ 2,313.44 $ 4,592.86
EQ/Putnam Growth & Income Value $ 752.40 $ 1,589.27 $ 2,471.13 $ 4,891.76
EQ/Putnam Voyager $ 760.80 $ 1,614.00 $ 2,511.48 $ 4,967.32
EQ/Small Company Index $ 741.90 $ 1,558.30 $ 2,420.49 $ 4,796.40
EQ/Technology $ 782.84 $ 1,678.71 $ 2,616.72 $ 5,162.66
- ------------------------------------------------------------------------------------------------------------
BARR ROSENBERG VARIABLE INSURANCE TRUST:
- ------------------------------------------------------------------------------------------------------------
Laudus Rosenberg VIT Value Long/Short Equity $ 1,445.25 $ 3,490.05 $ 5,355.80 $ 9,344.32
- ------------------------------------------------------------------------------------------------------------
THE UNIVERSAL INSTITUTIONAL FUNDS, INC.:
- ------------------------------------------------------------------------------------------------------------
U.S. Real Estate -- Class II $ 805.94 $ 1,746.18 $ 2,725.94 $ 5,362.69
- ------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------
If you do not surrender your contract at the end
of the applicable time period
-------------------------------------------------------------
Portfolio Name 1 year 3 years 5 years 10 years
- ------------------------------------------------------------------------------------------------------------
EQ ADVISORS TRUST:
EQ/MFS Investors Trust $ 403.45 $ 1,242.37 $ 2,126.18 $ 4,551.24
EQ/Money Market $ 369.86 $ 1,143.05 $ 1,963.44 $ 4,242.86
EQ/Putnam Growth & Income Value $ 402.40 $ 1,239.27 $ 2,121.13 $ 4,541.76
EQ/Putnam Voyager $ 410.80 $ 1,264.00 $ 2,161.48 $ 4,617.32
EQ/Small Company Index $ 391.90 $ 1,208.30 $ 2,070.49 $ 4,446.40
EQ/Technology $ 432.84 $ 1,328.71 $ 2,266.72 $ 4,812.66
- ------------------------------------------------------------------------------------------------------------
BARR ROSENBERG VARIABLE INSURANCE TRUST:
- ------------------------------------------------------------------------------------------------------------
Laudus Rosenberg VIT Value Long/Short Equity $ 1,095.25 $ 3,140.05 $ 5,005.80 $ 8,994.32
- ------------------------------------------------------------------------------------------------------------
THE UNIVERSAL INSTITUTIONAL FUNDS, INC.:
- ------------------------------------------------------------------------------------------------------------
U.S. Real Estate -- Class II $ 455.94 $ 1,396.18 $ 2,375.94 $ 5,012.69
- ------------------------------------------------------------------------------------------------------------
16 Fee table
CONDENSED FINANCIAL INFORMATION
Please see Appendix VI at the end of this Prospectus for the unit values and
the number of units outstanding as of the end of the periods shown for each of
the variable investment options available as of December 31, 2003.
Fee table 17
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 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.
We may refuse to accept any contribution if the sum of all contributions under
all Equitable Accumulator(R) series contracts with the same owner or annuitant
would then total more than $1,500,000 ($500,000 for owners or annuitants who
are ages 81 and older at contract issue). We reserve the right to limit
aggregate contributions made after the first contract year to 150% of
first-year contributions. We may also refuse to accept any contribution if the
sum of all contributions under all Equitable Life annuity accumulation
contracts with the same owner or annuitant would then total more than
$2,500,000. We may accept less than the minimum initial contribution under a
contract if an aggregate amount of contracts purchased at the same time by an
individual (including spouse) meets the minimum.
- --------------------------------------------------------------------------------
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
Contract type issue ages contributions Source of contributions Limitations on contributions+
- ----------------------------------------------------------------------------------------------------------------------------
NQ 0 through 85 o $5,000 (initial) o After-tax money. o For annuitants up to age 83
at contract issue, no addi-
o $500 (additional) o Paid to us by check or tional contributions may be
transfer of contract value in made after attainment of
a tax-deferred exchange age 84, or, if later, the first
under Section 1035 of the contract anniversary.*
Internal Revenue Code.
o For annuitants age 84 or 85
at contract issue, additional
contributions may be made
up to one year from contract
issue.*
- ----------------------------------------------------------------------------------------------------------------------------
18 Contract features and benefits
- ----------------------------------------------------------------------------------------------------------------------------
Available
for annuitant Minimum
Contract type issue ages contributions Source of contributions Limitations on contributions+
- ----------------------------------------------------------------------------------------------------------------------------
Rollover IRA 20 through 85 o $5,000 (initial) o Eligible rollover distribu- o For annuitants up to age 83
tions from TSA contracts or at contract issue, no addi-
o $50 (additional) other 403(b) arrangements, tional contributions may be
qualified plans, and govern- made after attainment of
mental employer 457(b) age 84, or, if later, the first
plans. contract anniversary.*
o Rollovers from another o For annuitants age 84 or 85
traditional individual retire- at contract issue, additional
ment arrangement. contributions may be made
up to one year from contract
o Direct custodian-to- issue.*
custodian transfers from
another traditional indi- o Contributions after age 70-1/2
vidual retirement must be net of required
arrangement. minimum distributions.
o Regular IRA contributions. o Although we accept regular
IRA contributions (limited to
o Additional "catch-up" con- $3,000 for 2004 and
tributions. $4,000 for 2005) under
rollover IRA contracts, we
intend that this contract be
used primarily for rollover
and direct transfer
contributions.
o Additional catch-up contri-
butions of up to $500 can
be made for the calendar
year 2004 or 2005 where
the owner is at least age 50
but under age 70-1/2 at any
time during the calendar
year for which the contribu-
tion is made.
- ----------------------------------------------------------------------------------------------------------------------------
Contract features and benefits 19
- ----------------------------------------------------------------------------------------------------------------------------
Available
for annuitant Minimum
Contract type issue ages contributions Source of contributions Limitations on contributions+
- ----------------------------------------------------------------------------------------------------------------------------
Roth Conversion 20 through 85 o $5,000 (initial) o Rollovers from another o For annuitants up to age 83
IRA Roth IRA. at contract issue, no addi-
o $50 (additional) tional contributions may be
o Conversion rollovers from a made after attainment of
traditional IRA. age 84, or, if later, the first
contract anniversary.*
o Direct transfers from
another Roth IRA. o For annuitants age 84 or 85
at contract issue, additional
o Regular Roth IRA contributions may be made
contributions. up to one year from contract
issue.*
o Additional catch-up
contributions. o Conversion rollovers after
age 70-1/2 must be net of
required minimum distribu-
tions for the traditional IRA
you are rolling over.
o You cannot roll over funds
from a traditional IRA if your
adjusted gross income is
$100,000 or more.
o Although we accept regular
Roth IRA contributions (lim-
ited to $3,000 for 2004 and
$4,000 for 2005) under
Roth IRA contracts, we
intend that this contract be
used primarily for rollover
and direct transfer
contributions.
o Additional catch-up contri-
butions of up to $500 can
be made for the calendar
year 2004 or 2005 where
the owner is at least age 50
at any time during the calen-
dar year for which the
contribution is made.
- ----------------------------------------------------------------------------------------------------------------------------
20 Contract features and benefits
- ----------------------------------------------------------------------------------------------------------------------------
Available
for annuitant Minimum
Contract type issue ages contributions Source of contributions Limitations on contributions+
- ----------------------------------------------------------------------------------------------------------------------------
Rollover TSA 20 through 85 o $5,000 (initial) o Direct transfers of pre-tax o For annuitants up to age 83
funds from another contract at contract issue, no addi-
o $500 (additional) or arrangement under Sec- tional contributions may be
tion 403(b) of the Internal made after attainment of
Revenue Code, complying age 84,or, if later, the first
with IRS Revenue Ruling contract anniversary.*
90-24.
o For annuitants age 84 or 85
o Eligible rollover distribu- at contract issue, additional
tions of pre-tax funds from contributions may be made
other 403(b) plans. Subse- up to one year from contract
quent contributions may issue.*
also be rollovers from quali-
fied plans, governmental o Rollover or direct transfer
employer 457(b) plans and contributions after age 70-1/2
traditional IRAs. must be net of any required
minimum distributions.
o We do not accept employer-
remitted contributions.
- ----------------------------------------------------------------------------------------------------------------------------
QP 20 through 75 o $5,000 (initial) o Only transfer contributions o We do not accept regular
from an existing defined ongoing payroll
o $500 (additional) contribution qualified plan contributions.
trust.
o Only one additional transfer
o The plan must be qualified contribution may be made
under Section 401(a) of the during a contract year.
Internal Revenue Code.
o No additional transfer con-
o For 401(k) plans, trans- tributions after the
ferred contributions may attainment of age 76 or, if
only include employee pre- later, the first contract
tax contributions. anniversary.
o Contributions after age 70-1/2
must be net of any required
minimum distributions.
o A separate QP contract must
be established for each plan
participant.
o We do not accept employer-
remitted contributions.
o We do not accept contribu-
tions from defined benefit
plans.
See Appendix I at the end of this Prospectus for a discussion of purchase considerations of QP contracts.
- ----------------------------------------------------------------------------------------------------------------------------
Contract features and benefits 21
- ----------------------------------------------------------------------------------------------------------------------------
Available
for annuitant Minimum
Contract type issue ages contributions Source of contributions Limitations on contributions+
- ----------------------------------------------------------------------------------------------------------------------------
Flexible Premium 20 through 70 o $2,000 (initial) o Regular traditional IRA o No regular IRA contributions
IRA contributions. in the calendar year you turn
o $50 (additional) age 70-1/2 and thereafter.
o Additional catch-up
contributions. o Rollover and direct transfer
contributions may be made
o Eligible rollover distribu- up to attainment of age
tions from TSA contracts or 84.*
other 403(b) arrangements,
qualified plans, and govern- o Regular contributions may
mental employer 457(b) not exceed $3,000 for 2004
plans. or $4,000 for 2005.
o Rollovers from another o Rollover and direct transfer
traditional individual retire- contributions after age 70-1/2
ment arrangement. must be net of required
minimum distributions.
o Direct custodian-
to-custodian transfers from o Although we accept rollover
another traditional indi- and direct transfer contribu-
vidual retirement tions under the Flexible
arrangement. Premium IRA contract, we
intend that this contract be
used for ongoing regular
contributions.
o Additional catch-up contri-
butions of up to $500 can
be made for the calendar
year 2004 or 2005 where
the owner is at least age 50
but under age 70-1/2 at any
time during the calendar
year for which the contribu-
tion is made.
- ----------------------------------------------------------------------------------------------------------------------------
22 Contract features and benefits
- ----------------------------------------------------------------------------------------------------------------------------
Available
for annuitant Minimum
Contract type issue ages contributions Source of contributions Limitations on contributions+
- ----------------------------------------------------------------------------------------------------------------------------
Flexible Premium 20 through 85 o $2,000 (initial) o Regular after-tax o For annuitants up to age 83
Roth IRA contributions. at contract issue, no addi-
o $50 (additional) tional contributions may be
o Additional catch-up made after the attainment
contributions. of age 84, or, if later, the first
contract anniversary.*
o Rollovers from another
Roth IRA. o For annuitants age 84 and
85 at contract issue, addi-
o Conversion rollovers from a tional contributions may be
traditional IRA. made up to one year from
contract issue.*
o Direct transfers from
another Roth IRA. o Regular Roth IRA contribu-
tions may not exceed
$3,000 for 2004 or $4,000
for 2005.
o Contributions are subject to
income limits and other tax
rules.
o Although we accept rollover
and direct transfer contribu-
tions under the Flexible
Premium Roth IRA contract,
we intend that this contract
be used for ongoing regular
Roth IRA contributions.
o Additional catch-up contri-
butions of up to $500 can
be made for the calendar
year 2004 or 2005 where
the owner is at least age 50
at any time during the calen-
dar year for which the
contribution is made.
- ----------------------------------------------------------------------------------------------------------------------------
Contract features and benefits 23
- ----------------------------------------------------------------------------------------------------------------------------
Available
for annuitant Minimum
Contract type issue ages contributions Source of contributions Limitations on contributions+
- ----------------------------------------------------------------------------------------------------------------------------
Inherited IRA 0-70 o $5,000 (initial) o (If contract is traditional o Any additional contributions
Beneficiary IRA) Direct custodian-to- must be from same type of
Continuation o $1,000 (additional) custodian transfers of your IRA of same deceased
Contract (tradi- interest as death beneficiary owner.
tional IRA or of the deceased owner's
Roth IRA) traditional individual retire-
ment arrangement.
o (If contract is Roth IRA)
Direct custodian-to-
custodian transfers of your
interest as death beneficiary
of the deceased owner's
Roth IRA.
- ----------------------------------------------------------------------------------------------------------------------------
+ If you purchase Guaranteed principal benefit option 2, no contributions are
permitted after the six month period beginning on the contract date.
* For Pennsylvania contracts, please see Appendix VII later in this Prospectus
for state variations.
See "Tax information" later in this Prospectus and in the SAI for a more
detailed discussion of sources of contributions and certain contribution
limitations. For information on when contributions are credited under your
contract see "Dates and prices at which contract events occur" in "More
information" later in this Prospectus.
24 Contract features and benefits
OWNER AND ANNUITANT REQUIREMENTS
Under NQ contracts, the annuitant can be different from 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. In general, we
will not permit a contract to be owned by a minor unless it is pursuant to the
Uniform Gift to Minors Act or the Uniform Transfers to Minors Act in your
state. If the Spousal protection feature is elected, the spouses must be joint
owners, one of the spouses must be the annuitant, and both must be named as the
only primary beneficiaries.
Under all IRA and Rollover TSA contracts, the owner and annuitant must be the
same person. In some cases, an IRA contract may be held in a custodial
individual retirement account for the benefit of the individual annuitant. This
option may not be available under your contract. See "Inherited IRA beneficiary
continuation contract" later in this section for Inherited IRA owner and
annuitant requirements.
Under QP contracts, the owner must be the trustee of the qualified plan and the
annuitant must be the plan participant/employee. See Appendix I at the end of
this Prospectus for more information on QP contracts.
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A "participant" is an individual who is currently, or was formerly,
participating in an eligible employer's qualified plan or TSA plan.
- --------------------------------------------------------------------------------
HOW YOU CAN MAKE YOUR CONTRIBUTIONS
Except as noted below, contributions must be 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.
For your convenience, we will accept initial and additional contributions by
wire transmittal from certain broker-dealers who have agreements with us for
this purpose, including circumstances under which such contributions are
considered received by us when your order is taken by such broker-dealers.
Additional contributions may also be made under our automatic investment
program. These methods of payment are 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 payments. 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.
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Our "business day" is generally any day the New York Stock Exchange is open for
trading and generally ends at 4:00 p.m. Eastern Time. A business day does not
include a 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 are the variable investment options, the guaranteed
interest option, the fixed maturity options and the account for special dollar
cost averaging.
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/Money Market variable investment
option. Listed below are the currently available portfolios, their investment
objectives and their advisers.
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You can choose from among the variable investment options, the guaranteed
interest option, the fixed maturity options and the account for special dollar
cost averaging.
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Contract features and benefits 25
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 the Accumulator(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.
Equitable Life serves as the investment manager of the Portfolios of the EQ
Advisors Trust and the AXA Premier VIP Trust. 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. The
advisers for these Portfolios, listed in the chart below, are those who make the
investment decisions for each Portfolio. The chart also indicates the investment
manager for each of the other Portfolios.
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AXA Premier VIP Trust
Portfolio Name Objective Adviser(s)
- -----------------------------------------------------------------------------------------------------------------------------------
AXA AGGRESSIVE ALLOCATION Seeks long-term capital appreciation. o Equitable Life
- -----------------------------------------------------------------------------------------------------------------------------------
AXA CONSERVATIVE ALLOCATION Seeks a high level of current income. o Equitable Life
- -----------------------------------------------------------------------------------------------------------------------------------
AXA CONSERVATIVE-PLUS Seeks current income and growth of capital, with a o Equitable Life
ALLOCATION greater emphasis on current income.
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AXA MODERATE ALLOCATION Seeks long-term capital appreciation and current income. o Equitable Life
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AXA MODERATE-PLUS Seeks long-term capital appreciation and current income, o Equitable Life
ALLOCATION with a greater emphasis on capital appreciation.
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AXA PREMIER VIP AGGRESSIVE Seeks long-term growth of capital. o Alliance Capital Management L.P.
EQUITY
o MFS Investment Management
o Marsico Capital Management, LLC
o Provident Investment Counsel, Inc.
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AXA PREMIER VIP CORE BOND Seeks a balance of high current income and capital o BlackRock Advisors, Inc.
appreciation, consistent with a prudent level of risk.
o Pacific Investment Management Company
LLC
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AXA PREMIER VIP HEALTH CARE Seeks long-term growth of capital. o A I M Capital Management, Inc.
o RCM Capital Management LLC
o Wellington Management Company, LLP
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AXA PREMIER VIP HIGH YIELD Seeks high total return through a combination of current o Alliance Capital Management L.P.
income and capital appreciation.
o Pacific Investment Management Company
LLC
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AXA PREMIER VIP Seeks long-term growth of capital. o Alliance Capital Management L.P., through
INTERNATIONAL EQUITY its Bernstein Investment Research and
Management Unit
o Bank of Ireland Asset Management
(U.S.) Limited
o Marsico Capital Management, LLC
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AXA PREMIER VIP LARGE CAP Seeks long-term growth of capital. o Alliance Capital Management L.P., through
CORE EQUITY its Bernstein Investment Research and
Management Unit
o Janus Capital Management LLC
o Thornburg Investment Management, Inc.
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26 Contract features and benefits
Portfolios of the Trusts (continued)
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AXA Premier VIP Trust
Portfolio Name Objective Adviser(s)
- -----------------------------------------------------------------------------------------------------------------------------------
AXA PREMIER VIP LARGE CAP Seeks long-term growth of capital. o Alliance Capital Management L.P.
GROWTH
o RCM Capital Management LLC
o TCW Investment Management Company
- -----------------------------------------------------------------------------------------------------------------------------------
AXA PREMIER VIP LARGE CAP Seeks long-term growth of capital. o Alliance Capital Management L.P.
VALUE
o Institutional Capital Corporation
o MFS Investment Management
- -----------------------------------------------------------------------------------------------------------------------------------
AXA PREMIER VIP SMALL/MID Seeks long-term growth of capital. o Alliance Capital Management L.P.
CAP GROWTH
o Franklin Advisers, Inc.
o Provident Investment Counsel, Inc.
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AXA PREMIER VIP SMALL/MID Seeks long-term growth of capital. o AXA Rosenberg Investment Management LLC
CAP VALUE
o TCW Investment Management Company
o Wellington Management Company, LLP
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AXA PREMIER VIP TECHNOLOGY Seeks long-term growth of capital. o Firsthand Capital Management, Inc.
o RCM Capital Management LLC
o Wellington Management Company, LLP
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EQ Advisors Trust
Portfolio Name Objective Adviser(s)
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EQ/ALLIANCE COMMON STOCK Seeks to achieve long-term growth of capital. o Alliance Capital Management L.P.
- -----------------------------------------------------------------------------------------------------------------------------------
EQ/ALLIANCE GROWTH AND Seeks to provide a high total return. o Alliance Capital Management L.P.
INCOME
- -----------------------------------------------------------------------------------------------------------------------------------
EQ/ALLIANCE INTERMEDIATE Seeks to achieve high current income consistent with o Alliance Capital Management L.P.
GOVERNMENT SECURITIES relative stability of principal.
- -----------------------------------------------------------------------------------------------------------------------------------
EQ/ALLIANCE INTERNATIONAL Seeks to achieve long-term growth of capital. o Alliance Capital Management L.P.
- -----------------------------------------------------------------------------------------------------------------------------------
EQ/ALLIANCE PREMIER GROWTH Seeks to achieve long-term growth of capital. o Alliance Capital Management L.P.
- -----------------------------------------------------------------------------------------------------------------------------------
EQ/ALLIANCE QUALITY BOND Seeks to achieve high current income consistent with o Alliance Capital Management L.P.
moderate risk to capital.
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EQ/ALLIANCE SMALL CAP Seeks to achieve long-term growth of capital. o Alliance Capital Management L.P.
GROWTH
- -----------------------------------------------------------------------------------------------------------------------------------
EQ/BERNSTEIN DIVERSIFIED VALUE Seeks capital appreciation. o Alliance Capital Management L.P.,
through its Bernstein Investment Research
and Management Unit
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EQ/CALVERT SOCIALLY Seeks long-term capital appreciation. o Calvert Asset Management Company, Inc.
RESPONSIBLE and Brown Capital Management, Inc.
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Contract features and benefits 27
Portfolios of the Trusts (continued)
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EQ Advisors Trust
Portfolio Name Objective Adviser(s)
- -----------------------------------------------------------------------------------------------------------------------------------
EQ/CAPITAL GUARDIAN To achieve long-term growth of capital. o Capital Guardian Trust Company
INTERNATIONAL
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EQ/CAPITAL GUARDIAN Seeks to achieve long-term growth of capital. o Capital Guardian Trust Company
RESEARCH
- -----------------------------------------------------------------------------------------------------------------------------------
EQ/CAPITAL GUARDIAN U.S. Seeks to achieve long-term growth of capital. o Capital Guardian Trust Company
EQUITY
- -----------------------------------------------------------------------------------------------------------------------------------
EQ/EMERGING MARKETS EQUITY Seeks long-term capital appreciation. o Morgan Stanley Investment Management,
Inc.
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EQ/EQUITY 500 INDEX Seeks a total return before expenses that approximates o 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.
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EQ/EVERGREEN OMEGA Seeks long-term capital growth. o Evergreen Investment Management
Company, LLC
- -----------------------------------------------------------------------------------------------------------------------------------
EQ/FI MID CAP Seeks long-term growth of capital. o Fidelity Management & Research Company
- -----------------------------------------------------------------------------------------------------------------------------------
EQ/FI SMALL/MID CAP VALUE Seeks long-term capital appreciation. o Fidelity Management & Research Company
- -----------------------------------------------------------------------------------------------------------------------------------
EQ/J.P. MORGAN CORE BOND Seeks to provide a high total return consistent with mod- o J.P. Morgan Investment Management Inc.
erate risk to capital and maintenance of liquidity.
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EQ/JANUS LARGE CAP GROWTH Seeks long-term growth of capital. o Janus Capital Management LLC
- -----------------------------------------------------------------------------------------------------------------------------------
EQ/LAZARD SMALL CAP VALUE Seeks capital appreciation. o Lazard Asset Management, LLC
- -----------------------------------------------------------------------------------------------------------------------------------
EQ/MARSICO FOCUS Seeks long-term growth of capital. o Marsico Capital Management, LLC
- -----------------------------------------------------------------------------------------------------------------------------------
EQ/MERCURY BASIC VALUE Seeks capital appreciation and secondarily, income. o Mercury Advisors
EQUITY
- -----------------------------------------------------------------------------------------------------------------------------------
EQ/MERCURY INTERNATIONAL Seeks capital appreciation. o Merrill Lynch Investment Managers Interna-
VALUE tional Limited
- -----------------------------------------------------------------------------------------------------------------------------------
EQ/MFS EMERGING GROWTH Seeks to provide long-term capital growth. o MFS Investment Management
COMPANIES
- -----------------------------------------------------------------------------------------------------------------------------------
EQ/MFS INVESTORS TRUST Seeks long-term growth of capital with secondary objec- o MFS Investment Management
tive to seek reasonable current income.
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EQ/MONEY MARKET Seeks to obtain a high level of current income, preserve o Alliance Capital Management L.P.
its assets and maintain liquidity.
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EQ/PUTNAM GROWTH & INCOME Seeks capital growth. Current income is a secondary o Putnam Investment Management, LLC
VALUE objective.
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EQ/PUTNAM VOYAGER Seeks long-term growth of capital and any increased o Putnam Investment Management, LLC
income that results from this growth.
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28 Contract features and benefits
Portfolios of the Trusts (continued)
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EQ Advisors Trust
Portfolio Name Objective Adviser(s)
- -----------------------------------------------------------------------------------------------------------------------------------
EQ/SMALL COMPANY INDEX Seeks to replicate as closely as possible (before the o Alliance Capital Management L.P.
deduction of portfolio expenses) the total return of the
Russell 2000 Index.
- -----------------------------------------------------------------------------------------------------------------------------------
EQ/TECHNOLOGY Seeks to achieve long-term growth of capital. o RCM Capital Management LLC
o Firsthand Capital Management, Inc.
o Wellington Management Company, LLP
- -----------------------------------------------------------------------------------------------------------------------------------
Barr Rosenberg Variable
Insurance Trust
Portfolio Name Objective Investment Manager/Adviser
- -----------------------------------------------------------------------------------------------------------------------------------
LAUDUS ROSENBERG VIT VALUE Seeks to increase the value of your investment in bull o Charles Schwab Investment Management,
LONG/SHORT EQUITY markets and bear markets through strategies that are Inc.
designed to have limited exposure to general equity o AXA Rosenberg Investment Management
market risk. LLC
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The Universal Institutional
Funds, Inc.
Portfolio Name Objective Investment Manager
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U.S. REAL ESTATE -- Class II(1) Seeks to provide above average current income and long- o Van Kampen(2)
term capital appreciation by investing primarily in equity
securities of companies in the U.S. real estate industry,
including real estate investment trusts.
- -----------------------------------------------------------------------------------------------------------------------------------
(1) 'Class II' Shares are defined in the current underlying Trust prospectus.
(2) Van Kampen is the name under which Morgan Stanley Investment Management
Inc. does business in certain situations.
You should consider the investment objective, risks, and charges and expenses
of the Portfolios carefully before investing. The prospectuses for the
Portfolios contain this and other important information about the Portfolios.
The prospectuses should be read carefully before investing. In order to obtain
copies of Trust prospectuses that do not accompany this Prospectus, you may
call one of our customer service representatives at 1-800-789-7771.
Contract features and benefits 29
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. We reserve the right to change these procedures.
All interest rates are effective annual rates, but before deduction of annual
administrative charges or any withdrawal charges.
The minimum yearly rate for 2004 is equal to the lifetime minimum rate of your
contract. Depending on the state where your contract is issued, your lifetime
minimum rate is either 1.50% or 3.00%. The data page for your contract shows
the lifetime minimum rate. The annual minimum rate will never be less than the
lifetime minimum rate. Check with your financial professional as to which rate
applies in your state. Current interest rates will never be less than the
yearly guaranteed interest rate.
See "Transferring your money among the investment options" later in this
Prospectus for restrictions on transfers from the guaranteed interest option.
FIXED MATURITY OPTIONS
We offer fixed maturity options with maturity dates ranging from one to ten
years. We will not accept allocations to a fixed maturity option if on the date
the contribution or transfer is to be applied the rate to maturity is 3%. This
means that at points in time, there may be no fixed maturity options available.
You can allocate your contributions to one or more of these fixed maturity
options, however, you may not have more than 12 different maturities running
during any contract year. These amounts become part of a non-unitized separate
account. 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 all states. Check with your financial professional
or see Appendix VII later in this Prospectus to see if fixed maturity options
are available in your state.
- --------------------------------------------------------------------------------
Fixed maturity options generally range from one to ten years to maturity.
- --------------------------------------------------------------------------------
Under the Special 10 year fixed maturity option (which is available only under
GPB Option 2), additional contributions will have the same maturity date as
your initial contribution (see "The guaranteed principal benefits" below). The
rate to maturity you will receive for each additional contribution is the rate
to maturity in effect for new contributions allocated to that fixed maturity
option on the date we apply your contribution.
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 amounts 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 offer fixed maturity options with
maturity dates ranging from one to ten years. Not all of these fixed maturity
options will be available for annuitant ages 76 and older. See "Allocating your
contributions" below.
Each new contribution is applied to a new fixed maturity option. When you apply
for an Accumulator(R) contract, a 60-day rate lock-in will apply from the date
the application is signed. Any contributions received and designated for a
fixed maturity option during this period will receive the then current fixed
maturity option rate or the rate that was in effect on the date that the
application was signed, whichever is greater. There is no rate lock available
for subsequent contributions to the contract after 60 days, transfers from the
variable investment options or the guaranteed interest option into a fixed
maturity option or transfers, from one fixed maturity option to another.
YOUR CHOICES AT THE MATURITY DATE. We will notify you between 15 and 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 in "Allocating your
contributions," below would apply:
(a) transfer the maturity value into another available fixed maturity option,
any of the variable investment options or the guaranteed interest option;
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
shortest available maturity option beginning on that date. As of February 13,
2004, the next available maturity date was February 13, 2012. If no fixed
maturity options are available, we will transfer your maturity value to the
EQ/Money Market option.
MARKET VALUE ADJUSTMENT. If you make any withdrawals (including transfers,
surrender 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 in effect at that time for new fixed maturity
options (adjusted to reflect a similar maturity date), and
30 Contract features and benefits
(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 III at the end of this Prospectus provides an example
of how the market value adjustment is calculated.
ACCOUNT FOR SPECIAL DOLLAR COST AVERAGING
The account for special dollar cost averaging is part of our general account.
We pay interest at guaranteed rates in this account. We will credit interest to
the amounts that you have in the account for special dollar cost averaging
every day. We set the interest rates periodically, according to procedures that
we have. We reserve the right to change these procedures.
We guarantee to pay our current interest rate that is in effect on the date
that your contribution is allocated to this account. Your guaranteed interest
rate for the time period you select will be shown in your contract for an
initial contribution. The rate will never be less than the lifetime minimum
rate for the guaranteed interest option. See "Allocating your contributions"
below for rules and restrictions that apply to the special dollar cost
averaging program.
ALLOCATING YOUR CONTRIBUTIONS
You may choose from among three ways to allocate your contributions under your
contract: self-directed, the guaranteed principal benefits or dollar cost
averaging.
SELF-DIRECTED ALLOCATION
You may allocate your contributions to one or more, or all, of the variable
investment options, the guaranteed interest option (subject to restrictions in
certain states-see Appendix VII later in this Prospectus for state variations)
and fixed maturity options. Allocations must be in whole percentages and you
may change your allocations at any time. The total of your allocations into all
available investment options must equal 100%. If the annuitant is age 76-80,
you may allocate contributions to fixed maturity options with maturities of
seven years or less. If the annuitant is age 81 or older, you may allocate
contributions to fixed maturity options with maturities of five years or less.
Also, you may not allocate amounts to fixed maturity options with maturity
dates that are later than the date annuity payments are to begin.
THE GUARANTEED PRINCIPAL BENEFITS
Subject to state availability (see Appendix VII later in this Prospectus for
more information on state availability of these benefits), we offer a
guaranteed principal benefit ("GPB") with two options. You may only elect one
of the GPBs. Neither GPB is available under Inherited IRA contracts. We will
not offer either GPB when the rate to maturity for the applicable fixed
maturity option is 3%. If you elect either GPB, you may not elect the
Guaranteed minimum income benefit, the systematic withdrawals option or the
substantially equal withdrawals option. Both GPB options allow you to allocate
a portion of your contribution or contributions to the variable investment
options, while ensuring that your account value will at least equal your
contributions adjusted for withdrawals and transfers on a specified date. GPB
Option 2 generally provides you with the ability to allocate more of your
contributions to the variable investment options than could be allocated using
GPB Option 1.
You may elect GPB Option 1 only if the annuitant is age 80 or younger when the
contract is issued (after age 75, only the 7-year fixed maturity option is
available). You may elect GPB Option 2 only if the annuitant is age 75 or
younger when the contract is issued. GPB Option 2 is not available for purchase
with any Flexible Premium IRA contract whether traditional or Roth. If you are
purchasing an IRA, QP or Rollover TSA contract, before you either purchase GPB
Option 2 or elect GPB Option 1 with 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, guaranteed interest option and
permissible funds outside this contract are sufficient to meet your required
minimum distributions. See "Tax information" later in this Prospectus and in
the SAI.
GUARANTEED PRINCIPAL BENEFIT OPTION 1. Under GPB Option 1, you select a fixed
maturity option at the time you sign your application. 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
percentage of your contribution allocated to the fixed maturity option will be
calculated based upon the rate to maturity then in effect for the fixed
maturity option you choose. Your contract will contain information on the
amount of your contribution allocated to the fixed maturity option. If you make
any withdrawals or transfers from the fixed maturity option before the option's
maturity date, the amount in the fixed maturity option will be adjusted and may
no longer grow to equal your initial contribution under GPB Option 1. The
maturity date you select generally may not be later than 10 years, or earlier
than 7 years from your contract date. You may allocate the rest of your initial
contribution to the investment options and guaranteed interest option however
you choose (unless you elect a dollar cost averaging program, in which case the
remainder of your initial contribution must be allocated to the dollar cost
averaging program). Upon the maturity date of the fixed maturity option, you
will be provided with the same notice and the same choices with respect to the
maturity value as described above under "Your choices at the maturity date."
There is no charge for GPB Option 1.
Contract features and benefits 31
GUARANTEED PRINCIPAL BENEFIT OPTION 2. You may purchase GPB Option 2 at the time
you apply for your contract. IF YOU PURCHASE GPB OPTION 2, YOU MAY NOT MAKE
ADDITIONAL CONTRIBUTIONS TO YOUR CONTRACT AFTER SIX MONTHS FROM THE CONTRACT
ISSUE DATE OR AT ANY EARLIER TIME IF AT SUCH TIME THE THEN APPLICABLE RATE TO
MATURITY ON THE SPECIAL 10 YEAR FIXED MATURITY OPTION IS 3%. Therefore, any
discussion in this Prospectus that involves any additional contributions after
the first six months will be inapplicable.
We specify the portion of your initial contribution, and any additional
permitted contributions, to be allocated to a Special 10 year fixed maturity
option. Your contract will contain information on the percentage of applicable
contributions allocated to the Special 10 year fixed maturity option. You may
allocate the rest of your contributions among the investment options (other
than the Special 10 year fixed maturity option) however you choose, as
permitted under your contract (unless you elect a dollar cost averaging
program, in which case all contributions, other than amounts allocated to the
Special 10 year fixed maturity option, must be allocated to the dollar cost
averaging program). The Special 10 year fixed maturity option will earn
interest at the specified rate to maturity then in effect.
If on the 10th contract date anniversary, your annuity account value is less
than the amount that is guaranteed under GPB Option 2, we will increase your
annuity account value to be equal to the guaranteed amount under GPB Option 2.
Any such additional amounts added to your annuity account value will be
allocated to the EQ/Money Market investment option. After the maturity date of
the Special 10 year fixed maturity option, the guarantee under GPB Option 2
will terminate. Upon the maturity date of the Special 10 year fixed maturity
option, you will be provided with the same notice and the same choices with
respect to the maturity value as described above under "Your choices at the
maturity date." The guaranteed amount under GPB Option 2 is equal to your
initial contribution adjusted for any additional permitted contributions,
transfers out of the Special 10 year fixed maturity option and withdrawals from
the contract (see "How withdrawals (and transfers out of the Special 10 year
fixed maturity option) affect your Guaranteed minimum income benefit,
Guaranteed minimum death benefit and Guaranteed principal benefit option 2" in
"Accessing your money" later in this Prospectus). Any transfers or withdrawals
from the Special 10 year fixed maturity option will also be subject to a market
value adjustment (see "Market value adjustment" under "Fixed maturity options"
above in this section).
Once you purchase the Guaranteed principal benefit option 2, you may not
voluntarily terminate this benefit. GPB Option 2 will terminate if the contract
terminates before the maturity date of the Special 10 year fixed maturity
option. If the owner and the annuitant are different people and the owner dies
before the maturity date of the Special 10 year fixed maturity option, we will
continue GPB Option 2 only if the contract can continue through the maturity
date of the Special 10 year fixed maturity option. If the contract cannot so
continue, we will terminate GPB Option 2. GPB Option 2 will continue where
there is a successor owner/annuitant. GPB Option 2 will terminate upon the
exercise of the beneficiary continuation option. See "Payment of death benefit"
later in this Prospectus for more information about the continuation of the
contract after the death of the owner and/or the annuitant.
There is a fee associated with GPB Option 2 (see "Charges and expenses" later
in this Prospectus). You should note that the purchase of GPB Option 2 is not
appropriate if you want to make additional contributions to your contract
beyond the first six months after your contract is issued. If you later decide
that you would like to make additional contributions to the Accumulator(R)
contract, we may permit you to purchase another contract. If we do, however,
you should note that we do not reduce or waive any of the charges on the new
contract, nor do we guarantee that the features available under this contract
will be available under the new contract. This means that you might end up
paying more with respect to certain charges than if you had simply purchased a
single contract (for example, the administrative charge).
The purchase of GPB Option 2 is also not appropriate if you plan on terminating
your contract before the maturity date of the Special 10 year fixed maturity
option. In addition, because we prohibit contributions to your contract after
the first six months, certain contract benefits that are dependent upon
contributions or account value will be limited (for example the guaranteed
death benefits and Protection Plus). You should also note that if you intend to
allocate a large percentage of your contributions to the guaranteed interest
option or other fixed maturity options, the purchase of GPB Option 2 may not be
appropriate because of the guarantees already provided by these options. An
example of the effect of GPB Option 1 and GPB Option 2 on your annuity contract
is included in Appendix VI later in this Prospectus.
DOLLAR COST AVERAGING
We offer a variety of dollar cost averaging programs. You may only participate
in one program at a time. Each program 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 value is low and fewer units if
the unit value is high. Therefore, you may get a lower average cost per unit
over the long term. These plans of investing, however, do not guarantee that
you will earn a profit or be protected against losses. You may not make
transfers to the fixed maturity options.
- --------------------------------------------------------------------------------
Units measure your value in each variable investment option.
- --------------------------------------------------------------------------------
SPECIAL DOLLAR COST AVERAGING PROGRAM. Subject to state availability (see
Appendix VII later in this Prospectus for more information on state
availability of this benefit), under the special dollar cost averaging program,
you may choose to allocate all or a portion of any eligible contribution to the
account for special dollar cost averaging. Contributions into the account for
special dollar cost averaging may not be transfers from other investment
options. Your initial allocation to any special dollar cost averaging program
time period must be at least $2,000 and any subsequent contribution to that
same time period must be at least $250. You may only have one time period in
effect at any time and once you select a time period, you may not change it. In
Pennsylvania, we refer to this program as "enhanced rate dollar cost
averaging."
You may have your account value transferred to any of the variable investment
options. We will transfer amounts from the account for
32 Contract features and benefits
special dollar cost averaging into the variable investment options over an
available time period that you select. We offer time periods of 3, 6 or 12
months, during which you will receive an enhanced interest rate. We may also
offer other time periods. Your financial professional can provide information
on the time periods and interest rates currently available in your state, or
you may contact our processing office. If the special dollar cost averaging
program is selected at the time of application to purchase the Accumulator(R)
contract, a 60 day rate lock will apply from the date of application. Any
contribution(s) received during this 60 day period will be credited with the
interest rate offered on the date of application for the remainder of the time
period selected at application. Any contribution(s) received after the 60 day
rate lock period has ended will be credited with the then current interest rate
for the remainder of the time period selected at application. Contribution(s)
made to a special dollar cost averaging program selected after the
Accumulator(R) contract has been issued will be credited with the then current
interest rate on the date the contribution is received by Equitable for the
time period initially selected by you. Once the time period you selected has
run, you may then select another time period for future contributions. At that
time, you may also select a different allocation for transfers to the variable
investment options, or, if you wish, we will continue to use the selection that
you have previously made. Currently, your account value will be transferred
from the account for special dollar cost averaging into the variable investment
options on a monthly basis. We may offer this program in the future with
transfers on a different basis.
We will transfer all amounts out of the account for special dollar cost
averaging by the end of the chosen time period. The transfer date will be the
same day of the month as the contract date, but not later than the 28th day of
the month. For a special dollar cost averaging program selected after
application, the first transfer date and each subsequent transfer date for the
time period selected will be one month from the date the first contribution is
made into the special dollar cost averaging program, but not later than the
28th of the month.
If you choose to allocate only a portion of an eligible contribution to the
account for special dollar cost averaging, the remaining balance of that
contribution will be allocated to the variable investment options, guaranteed
interest option or fixed maturity options according to your instructions.
The only amounts that should be transferred from the account for special dollar
cost averaging are your regularly scheduled transfers to the variable
investment options. No amounts may be transferred from the account for special
dollar cost averaging to the guaranteed interest option or the fixed maturity
options. If you request to transfer or withdraw any other amounts from the
account for special dollar averaging, we will transfer all of the value that
you have remaining in the account for special dollar cost averaging to the
investment options according to the allocation percentages for special dollar
cost averaging we have on file for you. You may ask us to cancel your
participation at any time.
GENERAL DOLLAR COST AVERAGING PROGRAM. If your value in the EQ/Money Market
option is at least $5,000, you may choose, at any time, to have a specified
dollar amount or percentage of your value transferred from that option to the
other variable investment options and the guaranteed interest option (subject
to restrictions in certain states. See Appendix VII later in this Prospectus.)
You can select to have transfers made on a monthly, quarterly or annual basis.
The transfer date will be the same calendar day of the month as the contract
date, but not later than the 28th day of the month. You can also specify the
number of transfers or instruct us to continue making the transfers until all
amounts in the EQ/Money Market option have been transferred out. The minimum
amount that we will transfer each time is $250.
If, on any transfer date, your value in the EQ/Money Market option is equal to
or less than the amount you have elected to have transferred, the entire amount
will be transferred. The general dollar cost averaging program will then end.
You may change the transfer amount once each contract year or cancel this
program at any time.
INVESTMENT SIMPLIFIER
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. Transfers may be made on a monthly,
quarterly or annual basis. You can specify the number of transfers or instruct
us to continue to make 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. The transfer date will be the same calendar day of the month
as the contract date but not later than the 28th day of the month. The minimum
transfer amount is $50. Unlike the account for special dollar cost averaging,
this option does not offer enhanced rates. Also, the option is subject to the
guaranteed interest option transfer limitations described under "Transferring
your account value" in "Transferring your money among investment options" later
in this Prospectus. While the program is running, any transfer that exceeds
those limitations will cause the program to end for that contract year. You
will be notified. You must send in a request form to resume the program in the
next or subsequent contract years.
If, on any transfer date, your value in the guaranteed interest option is equal
to or less than the amount you have elected to have transferred, the entire
amount will be transferred, and the program will end. You may change the
transfer amount once each contract year or cancel this program at any time.
Interest sweep option. Under this option, you may elect to have monthly
transfers from amounts in the guaranteed interest option into the variable
investment options of your choice. The transfer date will be the last business
day of the month. 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. We will automatically cancel the interest sweep
program if the amount in the guaranteed interest option is less than $7,500 on
the last day of the month for two months in a row. For the interest sweep
option, the first monthly transfer will occur on the
Contract features and benefits 33
last business day of the month following the month that we receive your
election form at our processing office.
----------------------------------
You may not participate in any dollar cost averaging program if you are
participating in the rebalancing program. See "Transferring your money among
investment options" later in this Prospectus. If you elect a GPB and a dollar
cost averaging program, 100% of your contributions not allocated to the fixed
maturity option under the GPB must be allocated to the dollar cost averaging
program you elect.
YOUR BENEFIT BASE
A benefit base is used to calculate the Guaranteed minimum income benefit and
the death benefits, as described in this section. Your benefit base is not an
account value or a cash value. See also "Our Guaranteed minimum income benefit
option" and "Guaranteed minimum death benefit" below.
STANDARD DEATH BENEFIT. Your benefit base is equal to:
o your initial contribution and any additional contributions to the contract;
less
o a deduction that reflects any withdrawals you make (the amount of the
deduction is described under "How withdrawals (and transfers out of the
Special 10 year fixed maturity option) affect your Guaranteed minimum
income benefit, Guaranteed minimum death benefit and Guaranteed principal
benefit option 2" in "Accessing your money" later in this Prospectus).
6% ROLL UP TO AGE 85 (USED FOR THE GREATER OF 6% ROLL UP TO AGE 85 OR THE
ANNUAL RATCHET TO AGE 85 ENHANCED DEATH BENEFIT AND FOR THE GUARANTEED MINIMUM
INCOME BENEFIT). Your benefit base is equal to:
o your initial contribution and any additional contributions to the contract;
plus
o daily interest; less
o a deduction that reflects any withdrawals you make (the amount of the
deduction is described under "How withdrawals (and transfers out of the
Special 10 year fixed maturity option) affect your Guaranteed minimum
income benefit, Guaranteed minimum death benefit and Guaranteed principal
benefit option 2" in "Accessing your money" and the section entitled
"Charges and expenses" later in this Prospectus).
The effective annual interest rate credited to this benefit base is:
o 6% with respect to the variable investment options (other than EQ/Alliance
Intermediate Government Securities and EQ/Money Market) and the account for
special dollar cost averaging; and
o 3% with respect to the EQ/Alliance Intermediate Government Securities and
EQ/Money Market, the fixed maturity options, the Special 10 year fixed
maturity option, the guaranteed interest option and the loan reserve
account under Rollover TSA (if applicable).
No interest is credited to the benefit base after the contract anniversary
following the annuitant's 85th birthday.
ANNUAL RATCHET TO AGE 85 (USED FOR THE ANNUAL RATCHET TO AGE 85 ENHANCED DEATH
BENEFIT OR THE GREATER OF 6% ROLL UP TO AGE 85 OR THE ANNUAL RATCHET TO AGE 85
ENHANCED DEATH BENEFIT AND FOR THE GUARANTEED MINIMUM INCOME BENEFIT). Your
benefit base is equal to the greater of:
o your initial contribution to the contract (plus any additional
contributions),
or
o your highest account value on any contract anniversary up to the contract
anniversary following the annuitant's 85th birthday, plus any contributions
made since the most recent contract anniversary,
each less
o a deduction that reflects any withdrawals you make (the amount of the
deduction is described under "How withdrawals (and transfers out of the
Special 10 year fixed maturity option) affect your Guaranteed minimum
income benefit, Guaranteed minimum death benefit and Guaranteed principal
benefit option 2" in "Accessing your money" later in this Prospectus).
GREATER OF 6% ROLL UP TO AGE 85 OR THE ANNUAL RATCHET TO AGE 85 ENHANCED DEATH
BENEFIT AND THE GUARANTEED MINIMUM INCOME BENEFIT. Your benefit base is equal
to the greater of the benefit base computed for the 6% Roll up to age 85 or the
benefit base computed for Annual Ratchet to age 85, as described immediately
above, on each contract anniversary. For the Guaranteed minimum income benefit,
the benefit base is reduced by any applicable withdrawal charge remaining when
the option is exercised.
ANNUITY PURCHASE FACTORS
Annuity purchase factors are the factors applied to determine your periodic
payments under the Guaranteed minimum income benefit and annuity payout
options. The Guaranteed minimum income benefit is discussed under "Our
Guaranteed minimum income benefit option" below and annuity payout options are
discussed under "Your annuity payout options" in "Accessing your money" later
in this Prospectus. The guaranteed annuity purchase factors are those factors
specified in your contract. The current annuity purchase factors are those
factors that are in effect at any given time. Annuity purchase factors are
based on interest rates, mortality tables, frequency of payments, the form of
annuity benefit, and the annuitant's (and any joint annuitant's) age and sex in
certain instances.
OUR GUARANTEED MINIMUM INCOME BENEFIT OPTION
The Guaranteed minimum income benefit is available if the annuitant is age 20
through 75 at the time the contract is issued. There is an additional charge
for the Guaranteed minimum income benefit which is described under "Guaranteed
minimum income benefit charge" in "Charges and expenses" later in this
Prospectus. Once you purchase the Guaranteed minimum income benefit, you may
not voluntarily terminate this benefit.
If you are purchasing this contract as an Inherited IRA or if you elect a GPB,
the Guaranteed minimum income benefit is not available. If you are purchasing
this contract to fund a Charitable Remainder Trust, the
34 Contract features and benefits
Guaranteed minimum income benefit is not available, except for certain
split-funded Charitable Remainder Trusts. If the annuitant was older than age
60 at the time an IRA, QP or Rollover TSA contract was issued, the Guaranteed
minimum income benefit may not be an appropriate feature because the minimum
distributions required by tax law generally must begin before the Guaranteed
minimum income benefit can be exercised.
The Guaranteed minimum income benefit guarantees you a minimum amount of fixed
income under your choice of a life annuity fixed payout option or a life with a
period certain payout option. You choose which of these payout options you want
and whether you want the option to be paid on a single or joint life basis at
the time you exercise your Guaranteed minimum income benefit. The maximum
period certain available under the life with a period certain payout option is
10 years. This period may be shorter, depending on the annuitant's age, as
follows:
- ------------------------------------------------------
Level payments
- ------------------------------------------------------
Period certain years
Annuitant's --------------------
age at exercise IRAs NQ
- ------------------------------------------------------
75 and younger 10 10
76 9 10
77 8 10
78 7 10
79 7 10
80 7 10
81 7 9
82 7 8
83 7 7
84 6 6
85 5 5
- ------------------------------------------------------
We may also make other forms of payout options available. For a description of
payout options, see "Your annuity payout options" in "Accessing your money"
later in this Prospectus.
- --------------------------------------------------------------------------------
The Guaranteed minimum income benefit should be regarded as a safety net only.
It provides income protection if you elect an income payout while the annuitant
is alive.
- --------------------------------------------------------------------------------
When you exercise the Guaranteed minimum income benefit, the annual lifetime
income that you will receive will be the greater of (i) your Guaranteed minimum
income benefit which is calculated by applying your Guaranteed minimum income
benefit base less any outstanding loan plus accrued interest (applies to
Rollover TSA only), at guaranteed annuity purchase factors, or (ii) the income
provided by applying your actual account value at our then current annuity
purchase factors. The benefit base is applied only to the guaranteed annuity
purchase factors under the Guaranteed minimum income benefit in your contract
and not to any other guaranteed or current annuity purchase rates. The amount
of income you actually receive will be determined when we receive your request
to exercise the benefit.
When you elect to receive annual lifetime income, your contract will terminate
and you will receive a new contract for the annuity payout option. For a
discussion of when your payments will begin and end, see "Exercise of
Guaranteed minimum income benefit" below.
Before you elect the Guaranteed minimum income benefit you should consider the
fact that it provides a form of insurance and is based on conservative
actuarial factors. The guaranteed annuity purchase factors we use to determine
your payout annuity benefit under the Guaranteed minimum income benefit are
more conservative than the guaranteed annuity purchase factors we use for our
standard payout annuity options. This means that, assuming the same amount is
applied to purchase the benefit and that we use guaranteed annuity purchase
factors to compute the benefit, each periodic payment under the Guaranteed
minimum income benefit payout annuity will be smaller than each periodic
payment under our standard payout annuity options. Therefore, even if your
account value is less than your benefit base, you may generate more income by
applying your account value to current annuity purchase factors. We will make
this comparison for you when the need arises.
ILLUSTRATIONS OF GUARANTEED MINIMUM INCOME BENEFIT. Assuming the 6% Roll up to
age 85 benefit base, the table below illustrates the Guaranteed minimum income
benefit amounts per $100,000 of initial contribution, for a male annuitant age
60 (at issue) on the contract date anniversaries indicated, who has elected the
life annuity fixed payout option, using the guaranteed annuity purchase factors
as of the date of this Prospectus, assuming no additional contributions,
withdrawals, or loans under Rollover TSA contracts, and assuming there were no
allocations to the EQ/Alliance Intermediate Government Securities, EQ/Money
Market, the guaranteed interest option, the fixed maturity options (including
the Special 10 year fixed maturity option) or the loan reserve account under
Rollover TSA contracts.
- ------------------------------------------------------
Guaranteed minimum
Contract date income benefit -- annual
anniversary at exercise income payable for life
- ------------------------------------------------------
10 $11,891
15 $18,597
- ------------------------------------------------------
EXERCISE OF GUARANTEED MINIMUM INCOME BENEFIT. On each contract date
anniversary that you are eligible to exercise the Guaranteed minimum income
benefit, we will send you an eligibility notice illustrating how much income
could be provided as of the contract date anniversary. You must notify us
within 30 days following the contract date anniversary if you want to exercise
the Guaranteed minimum income benefit. You must return your contract to us,
along with all required information, in order to exercise this benefit. You
will begin receiving annual payments one year after the annuity payout contract
is issued. You may choose to take a withdrawal prior to exercising the
Guaranteed minimum income benefit, which will reduce your payments. You may not
partially exercise this benefit. See "Accessing your money" under "Withdrawing
your account value" later in this Prospectus. Payments end with the last
payment before the annuitant's (or joint annuitant's, if applicable) death or,
if later, the end of the period certain (where the payout option chosen
includes a period certain).
EXERCISE RULES. You will be eligible to exercise the Guaranteed minimum income
benefit as follows:
Contract features and benefits 35
o If the annuitant was at least age 20 and no older than age 44 when the
contract was issued, you are eligible to exercise the Guaranteed minimum
income benefit within 30 days following each contract date anniversary
beginning with the 15th contract date anniversary.
o If the annuitant was at least age 45 and no older than age 49 when the
contract was issued, you are eligible to exercise the Guaranteed minimum
income benefit within 30 days following each contract date anniversary
after the annuitant is age 60.
o If the annuitant was at least age 50 and no older than age 75 when the
contract was issued, you are eligible to exercise the Guaranteed minimum
income benefit within 30 days following each contract date anniversary
beginning with the 10th contract date anniversary.
Please note:
(i) the latest date you may exercise the Guaranteed minimum income benefit is
within 30 days following the contract date anniversary following the
annuitant's 85th birthday;
(ii) if the annuitant was age 75 when the contract was issued, the only time
you may exercise the Guaranteed minimum income benefit is within 30 days
following the first contract date anniversary that it becomes available;
(iii) for QP and Rollover TSA contracts, if you are eligible to exercise your
Guaranteed minimum income benefit, we will first roll over amounts in such
contract to a Rollover IRA contract. You will be the owner of the Rollover
IRA contract; and
(iv) a successor owner/annuitant may only continue the Guaranteed minimum
income benefit if the contract is not past the last date on which the
original annuitant could have exercised the benefit. In addition, the
successor owner/annuitant must be eligible to continue the benefit and to
exercise the benefit under the applicable exercise rule (described in the
above bullets) using the following additional rules. The successor
owner/annuitant's age on the date of the annuitant's death replaces the
annuitant's age at issue for purposes of determining the availability of
the benefit and which of the exercise rules applies. The original contract
issue date will continue to apply for purposes of the exercise rules.
Please see both "Termination of your contract" in "Determining your contract
value" and "How withdrawals (and transfers out of the Special 10 year fixed
maturity option) affect your Guaranteed minimum income benefit, Guaranteed
minimum death benefit and Guaranteed principal benefit option 2" in "Accessing
your money" and the section entitled "Charges and expenses" later in this
Prospectus for more information on these guaranteed benefits.
GUARANTEED MINIMUM DEATH BENEFIT
Your contract provides a death benefit. If you do not elect one of the enhanced
death benefits 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 standard death benefit, whichever provides the highest
amount. The standard death benefit is equal to your total contributions,
adjusted for withdrawals (and any associated withdrawal charges), and any taxes
that apply. Once your contract is issued, you may not change or voluntarily
terminate your death benefit.
If you elect one of the enhanced death benefits, 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 your elected enhanced
death benefit on the date of the annuitant's death, adjusted for withdrawals
(and associated withdrawal charges) and taxes that apply, whichever provides
the highest amount. If you elect the Spousal protection option, the Guaranteed
minimum death benefit is based on the age of the older spouse, who may or may
not be the annuitant, for the life of the contract. See "Spousal protection" in
"Payment of death benefit" later in this Prospectus for more information.
OPTIONAL ENHANCED DEATH BENEFIT APPLICABLE FOR ANNUITANT AGES 0 THROUGH 75 AT
ISSUE OF NQ CONTRACTS; 20 THROUGH 75 AT ISSUE OF ROLLOVER IRA, ROTH CONVERSION
IRA, FLEXIBLE PREMIUM ROTH IRA, AND ROLLOVER TSA CONTRACTS; 20 THROUGH 70 AT
ISSUE OF FLEXIBLE PREMIUM IRA CONTRACTS; 0-70 AT ISSUE FOR INHERITED IRA
CONTRACTS; AND 20 THROUGH 75 AT ISSUE OF QP CONTRACTS.
Subject to state availability (see Appendix VII later in this Prospectus for
state availability of these benefits), you may elect one of the following
enhanced death benefits:
ANNUAL RATCHET TO AGE 85.
THE GREATER OF THE 6% ROLL UP TO AGE 85 OR THE ANNUAL RATCHET TO AGE 85.
Each enhanced death benefit is equal to its corresponding benefit base
described earlier in "Your benefit base." Once you have made your enhanced
death benefit election, you may not change it.
The standard death benefit is the only death benefit available for annuitant
ages 76 through 85 at issue of NQ, Rollover IRA, Roth Conversion IRA, Flexible
Premium Roth IRA and Rollover TSA contracts.
----------------------------------
Please see both "Termination of your contract" in "Determining your contract
value" and "How withdrawals (and transfers out of the Special 10 year fixed
maturity option) affect your Guaranteed minimum income benefit, Guaranteed
minimum death benefit and Guaranteed principal benefit option 2" in "Accessing
your money" and the section entitled "Charges and expenses" later in this
Prospectus for more information on these guaranteed benefits.
See Appendix IV later in this Prospectus for an example of how we calculate an
enhanced death benefit.
PROTECTION PLUS
Subject to state and contract availability (see Appendix VII later in this
Prospectus for state availability of these benefits), if you are purchasing a
contract under which the Protection Plus feature is available, you may elect
the Protection Plus death benefit at the time you purchase your contract.
Protection Plus provides an additional death benefit as described below. See
the appropriate part of "Tax information" later in
36 Contract features and benefits
this Prospectus for the potential tax consequences of electing to purchase the
Protection Plus feature in an NQ, IRA or Rollover TSA contract. Once you
purchase the Protection Plus feature, you may not voluntarily terminate this
feature.
If the annuitant is 70 or younger when we issue your contract (or if the
successor owner/annuitant is 70 or younger when he or she becomes the successor
owner/annuitant), the death benefit will be:
the greater of:
o the account value or
o any applicable death benefit
Increased by:
o such death benefit less total net contributions, multiplied by 40%.
For purposes of calculating your Protection Plus benefit, the following
applies: (i) "Net contributions" are the total contributions made (or if
applicable, the total amount that would otherwise have been paid as a death
benefit had the successor owner/annuitant election not been made plus any
subsequent contributions) adjusted for each withdrawal that exceeds your
Protection Plus earnings. "Net contributions" are reduced by the amount of that
excess. Protection Plus earnings are equal to (a) minus (b) where (a) is the
greater of the account value and the death benefit immediately prior to the
withdrawal and (b) is the net contributions as adjusted by any prior
withdrawals; and (ii) "Death benefit" is equal to the greater of the account
value as of the date we receive satisfactory proof of death or any applicable
Guaranteed minimum death benefit as of the date of death.
If the annuitant is age 71 through 75 when we issue your contract (or if the
successor owner/annuitant is between the ages of 71 and 75 when he or she
becomes the successor owner/annuitant and Protection Plus had been elected at
issue), the death benefit will be:
the greater of:
o the account value or
o any applicable death benefit
Increased by:
o such death benefit (as described above) less total net contributions,
multiplied by 25%
The value of the Protection Plus death benefit is frozen on the first contract
date anniversary after the annuitant turns age 80, except that the benefit will
be reduced for withdrawals on a pro rata basis. Reduction on a pro rata basis
means that we calculate the percentage of the current account value that is
being withdrawn and we reduce the benefit by that percentage. For example, if
the account value is $30,000 and you withdraw $12,000, you have withdrawn 40%
of your account value. If the benefit is $40,000 before the withdrawal, it
would be reduced by $16,000 ($40,000 X .40) and the benefit after the
withdrawal would be $24,000 ($40,000 - $16,000).
If you elect Spousal protection, the Protection Plus benefit is based on the
age of the older spouse, who may or may not be the annuitant. Upon the death of
the non-annuitant spouse, the account value will be increased by the value of
the Protection Plus benefit as of the date we receive due proof of death. Upon
the death of the annuitant, the value of the Protection Plus benefit is either
added to the death benefit payment or to the account value if Successor
owner/annuitant is elected. If the surviving spouse elects to continue the
contract, the benefit will be based on the age of the surviving spouse as of
the date of the non-surviving spouse's death for the remainder of the contract.
If the surviving spouse is age 76 or older, the benefit will terminate and the
charge will no longer be in effect. See "Spousal protection" in "Payment of
death benefit" later in this Prospectus for more information.
Protection Plus must be elected when the contract is first issued: neither the
owner nor the successor owner/annuitant can add it subsequently. Ask your
financial professional or see Appendix VII later in this Prospectus to see if
this feature is available in your state.
INHERITED IRA BENEFICIARY CONTINUATION CONTRACT
This contract is available to an individual beneficiary of a traditional IRA or
a Roth IRA where the deceased owner held the individual retirement account or
annuity (or Roth individual retirement account or annuity) with an insurance
company or financial institution other than Equitable. The purpose of the
inherited IRA beneficiary continuation contract is to permit the beneficiary to
change the funding vehicle that the deceased owner selected ("original IRA")
while taking the required minimum distribution payments that must be made to
the beneficiary after the deceased owner's death. This contract is intended
only for beneficiaries who want to take payments at least annually over their
life expectancy. These payments generally must begin (or must have begun) no
later than December 31 of the calendar year following the year the deceased
owner died. This contract is not suitable for beneficiaries electing the
"5-year rule." See "Beneficiary continuation option for IRA and Roth IRA
contracts" under "Beneficiary continuation option" in "Payment of death
benefit" later in this Prospectus. You should discuss with your tax adviser
your own personal situation. This contract may not be available in all states.
Please speak with your financial professional for further information.
The inherited IRA beneficiary continuation contract can only be purchased by a
direct transfer of the beneficiary's interest under the deceased owner's
original IRA. The owner of the inherited IRA beneficiary continuation contract
is the individual who is the beneficiary of the original IRA. (Certain trusts
with only individual beneficiaries will be treated as individuals for this
purpose). The contract must also contain the name of the deceased owner. In
this discussion, "you" refers to the owner of the inherited IRA beneficiary
continuation contract.
The inherited IRA beneficiary continuation contract can be purchased whether or
not the deceased owner had begun taking required minimum distribution payments
during his or her life from the original IRA or whether you had already begun
taking required minimum distribution payments of your interest as a beneficiary
from the deceased owner's original IRA. You should discuss with your own tax
adviser when payments must begin or must be made.
Under the inherited IRA beneficiary continuation contract:
o You must receive payments at least annually (but can elect to receive
payments monthly or quarterly). Payments are generally made over your life
expectancy determined in the calendar year after the deceased owner's death
and determined on a term certain basis.
Contract features and benefits 37
o The beneficiary of the original IRA will be the annuitant under the
inherited IRA beneficiary continuation contract. In the case where the
beneficiary is a "See Through Trust," the oldest beneficiary of the trust
will be the annuitant.
o An inherited IRA beneficiary continuation contract is not available for
annuitants over age 70.
o The initial contribution must be a direct transfer from the deceased
owner's original IRA and is subject to minimum contribution amounts. See
"How you can purchase and contribute to your contract" earlier in this
section.
o Subsequent contributions of at least $1,000 are permitted but must be
direct transfers of your interest as a beneficiary from another IRA with a
financial institution other than Equitable, where the deceased owner is the
same as under the original IRA contract.
o You may make transfers among the investment options.
o You may choose at any time to withdraw all or a portion of the account
value. Any partial withdrawal must be at least $300. Withdrawal charges,
will apply as described in "Charges and expenses" later in this Prospectus.
o The Guaranteed minimum income benefit, successor owner/ annuitant feature,
special dollar cost averaging program, automatic investment program, GPB
Options 1 and 2 and systematic withdrawals are not available under the
Inherited IRA beneficiary continuation contract.
o If you die, we will pay to a beneficiary that you choose the greater of the
annuity account value or the applicable death benefit.
o Upon your death, your beneficiary has the option to continue taking
required minimum distributions based on your remaining life expectancy or
to receive any remaining interest in the contract in a single 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. If your beneficiary
elects to continue to take distributions, we will increase the account
value to equal the applicable death benefit if such death benefit is
greater than such account value as of the date we receive satisfactory
proof of death and any required instructions, information and forms.
Thereafter, withdrawal charges will no longer apply. If you had elected any
enhanced death benefits, they will no longer be in effect and charges for
such benefits will stop. The Guaranteed minimum death benefit will also no
longer be in effect.
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, with a signed letter of instruction electing this right, to our
processing office within 10 days after you receive it. If state law requires,
this "free look" period may be longer. Other state variations may apply.
Generally, your refund will equal your account value under the contract on the
day we receive notification of your decision to cancel the contract and will
reflect (i) any investment gain or loss in the variable investment options
(less the daily charges we deduct), (ii) any guaranteed interest in the
guaranteed interest option, (iii) any positive or negative market value
adjustments in the fixed maturity options, and (iv) any interest in the account
for special dollar cost averaging, through the date we receive your contract.
Some states require that we refund the full amount of your contribution (not
reflecting (i), (ii), (iii) or (iv) above). For any IRA contract 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 may 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 and in the SAI for
possible consequences of cancelling your contract.
In addition to the cancellation right described above, if you fully convert an
existing traditional IRA contract to a Roth Conversion IRA or Flexible Premium
Roth IRA contract, you may cancel your Roth Conversion IRA or Flexible Premium
Roth IRA contract and return to a Rollover IRA or Flexible Premium IRA
contract, whichever applies. Our processing office, or your financial
professional, can provide you with the cancellation instructions.
38 Contract features and benefits
2. Determining your contract's value
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YOUR ACCOUNT VALUE AND CASH VALUE
Your "account value" is the total of the values you have in: (i) the variable
investment options; (ii) the guaranteed interest option; (iii) market adjusted
amounts in the fixed maturity options; (iv) the account for special dollar cost
averaging; and (v) the loan reserve account (applies for Rollover TSA contracts
only).
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) the
total amount or a pro rata portion of the annual administrative charge, as well
as optional benefit charges; (ii) any applicable withdrawal charges; and (iii)
the amount of any outstanding loan plus accrued interest (applicable to
Rollover TSA contracts only). Please see "Surrendering 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.
The unit value for each variable investment option depends on the investment
performance of that option less daily charges for:
(i) mortality and expense risks;
(ii) administrative expenses; and
(iii) distribution charges.
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);
(iii) increased to reflect a transfer into, or decreased to reflect a transfer
out of, a variable investment option; or
(iv) increased or decreased to reflect a transfer of your loan amount from or
to the loan reserve account under a Rollover TSA contract.
In addition, when we deduct the enhanced death benefit, Guaranteed minimum
income benefit, GPB Option 2 and/or Protection Plus benefit charges, the number
of units credited to your contract will be reduced. Your units are also reduced
when we deduct the annual administrative charge. 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
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, which reflects withdrawals out of
the option and charges we deduct. 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, provided there have been
no withdrawals or transfers.
YOUR CONTRACT'S VALUE IN THE ACCOUNT FOR SPECIAL DOLLAR COST AVERAGING
Your value in the account for special dollar cost averaging at any time will
equal your contribution allocated to that option, plus interest, less the sum
of all amounts that have been transferred to the variable investment options
you have selected.
TERMINATION OF YOUR CONTRACT
Your contract will terminate without value if your account value is
insufficient to pay any applicable charges when due. Your account value could
become insufficient due to withdrawals and/or poor market performance. Upon
such termination, you will lose any applicable guaranteed benefits.
See Appendix VII later in this Prospectus for any state variations with regard
to terminating your contract.
Determining your contract's value 39
3. Transferring your money among investment options
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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 may not transfer any amount to the account for special dollar cost
averaging.
o You may not transfer to a fixed maturity option that has a rate to maturity
of 3% or less.
o If the annuitant is age 76-80, you must limit your transfers to fixed
maturity options with maturities of seven years or less. If the annuitant
is age 81 or older, you must limit your transfers to fixed maturity options
of five years or less. As of February 13, 2004, maturities of less than
eight years were not available. Also, the maturity dates may be no 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 and affect
your GPB.
o No transfers are permitted into the Special 10 year fixed maturity option.
Some states may have additional transfer restrictions. Please see Appendix VII
later in this Prospectus.
In addition, we reserve the right to restrict transfers among variable
investment options as described in your contract, including limitations on the
number, frequency, or dollar amount of transfers.
The maximum amount that may be transferred from the guaranteed interest option
to any investment option (including amounts transferred pursuant to the
fixed-dollar option and interest sweep option dollar cost averaging programs
described under "Allocating your contributions" in "Contract features and
benefits" earlier in this Prospectus) in any contract year is the greatest of:
(a) 25% of the amount you have in the guaranteed interest option on the last
day of the prior contract year; or,
(b) the total of all amounts transferred at your request from the guaranteed
interest option to any of the Investment options in the prior contract
year; or,
(c) 25% of amounts transferred or allocated to the guaranteed interest option
during the current contract year.
From time to time, we may remove the restrictions regarding transferring
amounts out of the guaranteed interest option. 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,
if any dollar cost averaging transfer out of the guaranteed interest option
causes a violation of the 25% outbound restriction, that dollar cost averaging
program will be terminated for the current contract year. A new dollar cost
averaging program can be started in the next or subsequent contract years.
You may request a transfer in writing, by telephone using TOPS or through
EQAccess. You must send in all written transfer requests directly to our
processing office. Transfer requests should specify:
(1) the contract number,
(2) the dollar amounts or percentages of your current account value 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 Accumulator(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.
Frequent transfers, including market timing and other program trading
strategies, may be disruptive to the underlying portfolios in which the
variable investment options invest. Disruptive transfer activity may hurt the
long term performance of a portfolio by, for example, requiring it to maintain
larger amounts of cash or to liquidate portfolio holdings at a disadvantageous
time or price. We currently use the procedures described below to discourage
disruptive transfer activity in AXA Premier VIP Trust and EQ Advisors Trust.
You should understand, however, that these procedures are subject to the
following limitations: (1) they do not eliminate the possibility that
disruptive transfer activity, including market timing, will occur or that
portfolio performance will be affected by such activity; (2) the design of
these procedures involves inherently subjective judgments, which we and AXA
Premier VIP Trust and EQ Advisors Trust seek to make in a fair and reasonable
manner consistent with interests of all policy and contract owners. Certain
frequent transfer activities attempt to exploit inefficiencies in how portfolio
securities are valued. Please see the prospectuses for the underlying
portfolios for more information on how portfolio shares are priced.
If we determine that your transfer patterns are disruptive, 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. 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 reduce disruptive activity, we
monitor the frequency of transfers, including the size of transfers in relation
to portfolio assets, in each underlying portfolio. When a
40 Transferring your money among investment options
potentially disruptive transfer into or out of a portfolio occurs on a day when
the portfolio's aggregate deposits or aggregate redemptions exceed our
monitoring threshold, we may take the actions described above to restrict
availability of voice, fax and automated transaction services. We currently
apply such action for the remaining life of each affected contract. We also
currently provide a letter to owners who have engaged in disruptive transfer
activity of our intention to restrict access to communication 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 potentially
disruptive transfer activity and our monitoring procedures and thresholds, as
well as change our procedures to restrict this activity.
Our ability to monitor potentially disruptive transfer activity is limited in
certain circumstances. Group annuity contracts may be owned by retirement plans
on whose behalf we provide transfer instructions on an omnibus (aggregate)
basis, which may mask the disruptive transfer activity of individual plan
participants, and/or interfere with our ability to restrict communication
services. Also, underlying portfolios that are not in AXA Premier VIP Trust or
EQ Advisors Trust may be available for investment through companies that may
have policies and procedures regarding disruptive transfer activity that are
different from ours. Please see the prospectuses for those underlying
portfolios for more information.
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 on a contract year basis).
Rebalancing will occur on the same day of the month as the contract date. If a
contract is established after the 28th, rebalancing will occur on the first
business day of the month following the contract issue date.
While your rebalancing program is in effect, we will transfer amounts among the
variable investment options 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. 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; your rebalancing allocations will not be changed; and
the rebalancing program will remain in effect unless you request that it be
canceled in writing. There is no charge for the rebalancing feature.
You may not elect the rebalancing program if you are participating in any
dollar cost averaging program. Rebalancing is not available for amounts you
have allocated in the guaranteed interest option or fixed maturity options.
Transferring your money among investment options 41
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. If you withdraw more than 90% of a
contract's current cash value, we will treat it as a request to surrender the
contract for its cash value. In addition, we have the right to pay the cash
value and terminate this contract if no contributions are made during the last
three completed contract years, and the account value is less than $500, or if
you make a withdrawal that would result in a cash value of less than $500. See
"Surrendering your contract to receive its cash value" below. For the tax
consequences of withdrawals, see "Tax information" later in this Prospectus and
in the SAI.
Please see "Termination of your contract" in "Determining your contract value"
earlier in this Prospectus and "How withdrawals (and transfers out of the
Special 10 year fixed maturity option) affect your Guaranteed minimum income
benefit, Guaranteed minimum death benefit and Guaranteed principal benefit
option 2," below for more information on how withdrawals affect your guaranteed
benefits and could potentially cause your contract to terminate.
- --------------------------------------------------------------------------------
Method of withdrawal
------------------------------------------------------------
Lifetime
required
Substantially minimum
Contract Lump sum Systematic equal distribution
- --------------------------------------------------------------------------------
NQ Yes Yes No No
- --------------------------------------------------------------------------------
Rollover IRA Yes Yes Yes Yes
- --------------------------------------------------------------------------------
Flexible
Premium IRA Yes Yes Yes Yes
- --------------------------------------------------------------------------------
Roth Conversion
IRA Yes Yes Yes No
- --------------------------------------------------------------------------------
Flexible Premium
Roth IRA Yes Yes Yes No
- --------------------------------------------------------------------------------
Inherited IRA Yes No No **
- --------------------------------------------------------------------------------
QP Yes No No Yes
- --------------------------------------------------------------------------------
Rollover TSA* Yes Yes No Yes
- --------------------------------------------------------------------------------
* For some Rollover TSA contracts, your ability to take withdrawals, loans or
surrender your contract may be limited. You must provide withdrawal
restriction information when you apply for a contract. See "Tax Sheltered
Annuity contracts (TSAs)" in "Tax information" later in this Prospectus and
in the SAI.
** This contract pays out post-death required minimum distributions. See
"Inherited IRA beneficiary continuation contract" in "Contract features and
benefits" earlier in this Prospectus.
LUMP SUM WITHDRAWALS
(All contracts)
You may take lump sum withdrawals from your account value at any time.
(Rollover TSA contracts may have restrictions.) The minimum amount you may
withdraw is $300.
Lump sum withdrawals will be subject to a withdrawal charge if they exceed the
10% free withdrawal amount (see "10% free withdrawal amount" in "Charges and
expenses" later in this Prospectus). Under Rollover TSA contracts, if a loan is
outstanding, you may only take lump sum withdrawals as long as the cash value
remaining after any withdrawal equals at least 10% of the outstanding loan plus
accrued interest.
SYSTEMATIC WITHDRAWALS
(NQ, Rollover TSA, Rollover IRA, Roth Conversion IRA, Flexible Premium IRA and
Flexible Premium Roth IRA contracts)
You may take systematic withdrawals of a particular dollar amount or a
particular percentage of your account value. (Rollover TSA contracts may have
restrictions)
You may take systematic withdrawals on a monthly, quarterly or annual basis as
long as the withdrawals do not exceed the following percentages of your account
value: 0.8% monthly, 2.4% quarterly and 10.0% annually. The minimum amount you
may take in each systematic withdrawal is $250. If the amount withdrawn would
be less than $250 on the date a withdrawal is to be taken, we will not make a
payment and we will terminate your systematic withdrawal election.
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, we
will make the withdrawals on the same calendar day of the month as the contract
date. You must wait at least 28 days after your contract is issued before your
systematic withdrawals can begin.
You may elect to take systematic withdrawals at any time. If you own an IRA
contract, you may elect this withdrawal method only if you are between ages
59-1/2 and 70-1/2.
You may change the payment frequency, or the amount or percentage of your
systematic withdrawals, once each contract year. However, you may not change
the amount or percentage in any contract year in which you have already taken a
lump sum withdrawal. You can cancel the systematic withdrawal option at any
time.
Systematic withdrawals are not subject to a withdrawal charge, except to the
extent that, when added to a lump sum withdrawal previously taken in the same
contract year, the systematic withdrawal exceeds the 10% free withdrawal
amount. This option is not available if you have elected a Guaranteed principal
benefit.
SUBSTANTIALLY EQUAL WITHDRAWALS
(Rollover IRA, Roth Conversion IRA, Flexible Premium IRA and Flexible Premium
Roth IRA contracts)
We offer our "substantially equal withdrawals option" to allow you to receive
distributions from your account value without triggering the 10% additional
federal income tax penalty, which normally applies to distributions made before
age 59-1/2. See "Tax information" later in this Prospectus and in the SAI. We
use one of the IRS-approved methods
42 Accessing your money
for doing this; this is not the exclusive method of meeting this exception.
After consultation with your tax adviser, you may decide to use another method
which would require you to compute amounts yourself and request lump sum
withdrawals. In such a case, a withdrawal charge may apply. Once you begin to
take substantially equal withdrawals, you should not stop them or change the
pattern of your withdrawals until after the later of age 59-1/2 or five full
years after the first withdrawal. If you stop or change the withdrawals or take
a lump sum withdrawal, you may be liable for the 10% federal tax penalty that
would have otherwise been due on prior withdrawals made under this option and
for any interest on the delayed payment of the penalty.
In accordance with IRS guidance, an individual who has elected to receive
substantially equal withdrawals may change, without penalty, from one of the
IRS-approved methods of calculating fixed payments to another IRS-approved
method (similar to the required minimum distribution rules) of calculating
payments which vary each year.
You may elect to take substantially equal withdrawals at any time before age
59-1/2. 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. You may not elect to
receive the first payment in the same contract year in which you took a lump
sum withdrawal. We will calculate the amount of your substantially equal
withdrawals using the IRS-approved method we offer. The payments will be made
monthly, quarterly or annually as you select. These payments will continue
until we receive written notice from you to cancel this option or you take a
lump sum withdrawal. You may elect to start receiving substantially equal
withdrawals again, but the payments may not restart in the same contract year
in which you took a lump sum withdrawal. We will calculate the new withdrawal
amount.
Substantially equal withdrawals that we calculate for you are not subject to a
withdrawal charge. This option is not available if you have elected a
guaranteed principal benefit.
LIFETIME REQUIRED MINIMUM DISTRIBUTION WITHDRAWALS
(Rollover IRA, Flexible Premium IRA, QP and Rollover TSA contracts only -- See
"Tax information" later in this Prospectus and in the SAI)
We offer our "automatic required minimum distribution (RMD) service" to help
you meet lifetime required minimum distributions under federal income tax
rules. This is not the exclusive way for you to meet these rules. After
consultation with your tax adviser, you may decide to compute required minimum
distributions yourself and request lump sum withdrawals. In such a case, a
withdrawal charge may apply.
You may elect this service in the year in which you reach age 70-1/2 or in any
later year. The minimum amount we will pay out is $250. Currently, minimum
distribution withdrawal payments will be made annually. See "Required minimum
distributions" in "Tax information" later in this Prospectus and in the SAI for
your specific type of retirement arrangement.
We do not impose a withdrawal charge on minimum distribution withdrawals if you
are enrolled in our automatic RMD service except if, when added to a lump sum
withdrawal previously taken in the same contract year, the minimum distribution
withdrawal exceeds the 10% free withdrawal amount.
Under Rollover TSA contracts, you may not elect our automatic RMD service if a
loan is outstanding.
- --------------------------------------------------------------------------------
For Rollover IRA, Flexible Premium IRA, and Rollover TSA contracts, 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).
- --------------------------------------------------------------------------------
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 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 the withdrawal will be withdrawn
from the fixed maturity options (other than the Special 10 year fixed maturity
option) in the order of the earliest maturity date(s) first. If the FMO amounts
are insufficient, we will deduct all or a portion of the withdrawal from the
account for special dollar cost averaging. If such amounts are still
insufficient, we will deduct any remaining portion from the Special 10 year
fixed maturity option. A market value adjustment will apply to withdrawals from
the fixed maturity options (including the Special 10 year fixed maturity
option).
HOW WITHDRAWALS (AND TRANSFERS OUT OF THE SPECIAL 10 YEAR FIXED MATURITY
OPTION) AFFECT YOUR GUARANTEED MINIMUM INCOME BENEFIT, GUARANTEED MINIMUM DEATH
BENEFIT AND GUARANTEED PRINCIPAL BENEFIT OPTION 2
In general, withdrawals will reduce your guaranteed benefits 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
benefit by the 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
benefit was $40,000 before the withdrawal, it would be reduced by $16,000
($40,000 X .40) and your new benefit after the withdrawal would be $24,000
($40,000 - $16,000).
Transfers out of the Special 10 year fixed maturity option will reduce the GPB
Option 2 amount on a pro rata basis. In addition, if you make a contract
withdrawal from the Special 10 year fixed maturity option, we will reduce your
GPB Option 2 in a similar manner; however, the reduction will reflect both a
transfer out of the Special 10 year fixed maturity option and a withdrawal from
the contract. Therefore, the reduction in GPB Option 2 is greater when you take
a contract withdrawal from the Special 10 year fixed maturity option than it
would be if you took the withdrawal from another investment option.
Similar to the example above, if your account value is $30,000 and you withdraw
$12,000 from the Special 10 year fixed maturity option, you have withdrawn 40%
of your account value. If your GPB Option 2 benefit was $40,000 before the
withdrawal, the reduction to reflect the transfer out of the Special 10 year
fixed maturity option would equal $16,000 ($40,000 x .40). The amount used to
calculate the
Accessing your money 43
reduction to reflect the withdrawal from the contract is $24,000 ($40,000 -
$16,000). The reduction to reflect the withdrawal would equal $9,600 ($24,000 x
..40), and your new benefit after the withdrawal would be $14,400 ($24,000 -
$9,600).
With respect to the Guaranteed minimum income benefit and the greater of 6%
Roll up to age 85 or the Annual Ratchet to age 85 enhanced death benefit,
withdrawals will reduce each of the benefits' 6% Roll up to age 85 benefit base
on a dollar-for-dollar basis, as long as the sum of withdrawals in a contract
year is 6% or less of the 6% Roll up benefit base on the most recent contract
date anniversary. Once a withdrawal is taken that causes the sum of withdrawals
in a contract year to exceed 6% of the benefit base on the most recent
anniversary, that entire withdrawal and any subsequent withdrawals in that same
contract year will reduce the benefit base pro rata. Reduction on a
dollar-for-dollar basis means that your 6% Roll up to age 85 benefit base will
be reduced by the dollar amount of the withdrawal for each Guaranteed benefit.
The Annual Ratchet to age 85 benefit base will always be reduced on a pro rata
basis.
LOANS UNDER ROLLOVER TSA CONTRACTS
You may take loans from a Rollover TSA unless restricted by the employer who
provided the Rollover TSA funds. If you cannot take a loan, or cannot take a
loan without approval from the employer who provided the funds, we will have
this information in our records based on what you and the employer who provided
the funds told us when you purchased your contract. The employer must also tell
us whether special employer plan rules of the Employee Retirement Income
Security Act of 1974 ("ERISA") apply. We will not permit you to take a loan
while you are enrolled in our "automatic required minimum distribution (RMD)
service."
You should read the terms and conditions on our loan request form carefully
before taking out a loan. Under Rollover TSA contracts subject to ERISA, you
may only take a loan with the written consent of your spouse. Your contract
contains further details of the loan provision. Please see Appendix VII later
in this Prospectus for any state restrictions you may be subject to if you take
a loan from a Rollover TSA contract. Also, see "Tax information" later in this
Prospectus and in the SAI for general rules applicable to loans.
We will permit you to have only one loan outstanding at a time. The minimum
loan amount is $1,000. The maximum amount is $50,000 or, if less, 50% of your
account value, subject to any limits under the federal income tax rules. The
term of a loan is five years. However, if you use the loan to acquire your
primary residence, the term is 10 years. The term may not extend beyond the
earliest of:
(1) the date annuity payments begin,
(2) the date the contract terminates, and
(3) the date a death benefit is paid (the outstanding loan will be deducted
from the death benefit amount).
A loan request under your Rollover TSA contract will be processed on the first
business day of the month following the date on which the properly completed
loan request form is received. Interest will accrue daily on your outstanding
loan at a rate we set. The loan interest rate will be equal to the Moody's
Corporate Bond Yield Averages for Baa bonds for the calendar month ending two
months before the first day of the calendar quarter in which the rate is
determined.
LOAN RESERVE ACCOUNT. On the date your loan is processed, we will transfer the
amount of your loan to the loan reserve account. Unless you specify otherwise,
we will subtract your loan on a pro rata basis from your value in the variable
investment options and the guaranteed interest option. If these amounts are
insufficient, any additional amount of the loan will be subtracted from the
fixed maturity options (other than the Special 10 year fixed maturity option)
in the order of the earliest maturity date(s) first. If FMO amounts are
insufficient, we will deduct all or a portion of the loan from the account for
special dollar cost averaging. If such amounts are still insufficient, we will
deduct any remaining portion from the Special 10 year fixed maturity option. A
market value adjustment will apply to withdrawals from the fixed maturity
options (including the Special 10 year fixed maturity option). If amounts are
withdrawn from the Special 10 year fixed maturity option, the guaranteed
benefit will be adversely affected. See "Guaranteed principal benefit option 2"
in "Contract features and benefits" earlier in this Prospectus.
We will credit interest to the amount in the loan reserve account at a rate of
2% lower than the loan interest rate that applies for the time your loan is
outstanding. On each contract date anniversary after the date the loan is
processed, we will transfer the amount of interest earned in the loan reserve
account to the variable investment options on a pro rata basis. When you make a
loan repayment, unless you specify otherwise, we will transfer the dollar
amount of the loan repaid from the loan reserve account to the investment
options according to the allocation percentages we have on our records.
SURRENDERING 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. (Rollover
TSA contracts may have restrictions.) 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.
For the tax consequences of surrenders, see "Tax information" later in this
Prospectus and in the SAI.
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, payment of a death benefit, payment of any amount you
withdraw (less any withdrawal charge) and, upon surrender, 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,
44 Accessing your money
(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 value in the guaranteed interest
option, fixed maturity options and the account for special dollar cost
averaging (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 10 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
Equitable Accumulator(R) offers you several choices of annuity payout options.
Some enable you to receive fixed annuity payments, which can be either level or
increasing, 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. In addition, if you are exercising your Guaranteed minimum
income benefit, your choice of payout options are those that are available
under the Guaranteed minimum income benefit (see "Our Guaranteed minimum income
benefit option" in "Contract features and benefits" earlier in this
Prospectus).
- --------------------------------------------------------------------------------
Fixed annuity payout options Life annuity
Life annuity with period certain
Life annuity with refund certain
Period certain annuity
- --------------------------------------------------------------------------------
Variable Immediate Annuity Life annuity (not available in
payout options New York)
Life annuity with period certain
- --------------------------------------------------------------------------------
Income Manager payout options Life annuity with period certain
(available for annuitants age 83 Period certain annuity
or less at contract issue)
- --------------------------------------------------------------------------------
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. A life annuity with a
period certain is the form of annuity under the contract 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.
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 guaranteed 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 OPTIONS
With fixed annuities, we guarantee fixed annuity payments will be based either
on the tables of guaranteed annuity purchase factors in your contract or on our
then current annuity purchase factors, 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 Immediate Annuities may be funded through your choice of available
variable investment options investing in portfolios of EQ Advisors Trust and
AXA Premier VIP Trust. The contract also offers a fixed income annuity payout
option that can be elected in combination with the variable income annuity
payout option. The amount of each variable income 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.
INCOME MANAGER PAYOUT OPTIONS
The Income Manager payout annuity contracts differ from the other payout
annuity contracts. The other payout annuity contracts may provide higher or
lower income levels, but do not have all the features of the Income Manager
payout annuity contract. You may request an illustration of the Income Manager
payout annuity contract from your financial professional. Income Manager payout
options are described in a separate prospectus that is available from your
financial professional. Before you select an Income Manager payout option, you
should read the prospectus which contains important information that you should
know.
Accessing your money 45
Both NQ and IRA Income Manager payout options provide guaranteed level
payments. The Income Manager (life annuity with period certain) also provides
guaranteed increasing payments (NQ contracts only). You may not elect an Income
Manager payout option without life contingencies unless withdrawal charges are
no longer in effect under your Equitable Accumulator(R).
For QP and Rollover TSA contracts, if you want to elect an Income Manager
payout option, we will first roll over amounts in such contract to a Rollover
IRA contract with the plan participant as owner.
You may choose to apply your account value of your Equitable Accumulator(R)
contract to an Income Manager payout annuity. In this case, we will consider
any amounts applied as a withdrawal from your Equitable Accumulator(R) and we
will deduct any applicable withdrawal charge. For the tax consequences of
withdrawals, see "Tax information" later in this Prospectus and in the SAI.
Depending upon your circumstances, an Income Manager contract may be purchased
on a tax-free basis. Please consult your tax adviser. The Income Manager payout
options are not available in all states.
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 Immediate 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 under
your Equitable Accumulator(R) is imposed if you select a period certain. If the
period certain is more than 5 years, then the withdrawal charge deducted will
not exceed 5% of the account value.
For the Income Manager life contingent payout options, no withdrawal charge is
imposed under the Equitable Accumulator(R). If the withdrawal charge that
otherwise would have been applied to your account value under your Equitable
Accumulator(R) is greater than 2% of the contributions that remain in your
contract at the time you purchase your payout option, the withdrawal charges
under the Income Manager will apply. The year in which your account value is
applied to the payout option will be "contract year 1."
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. The contract owner and annuitant
must meet the issue age and payment requirements.
You can choose the date annuity payments begin but it may not be earlier than
thirteen months from the Equitable Accumulator(R) contract date. Except with
respect to the Income Manager annuity payout options, where payments are made
on the 15th day of each month, 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
annuity maturity date described below:
The amount of the annuity payments will depend on the amount applied to
purchase the annuity and the applicable annuity purchase factors, discussed
earlier.
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.
ANNUITY MATURITY DATE
Your contract has a maturity date by which you must either take a lump sum
withdrawal or select an annuity payout option. The maturity date is generally
the contract date anniversary that follows the annuitant's 95th birthday.
Please see Appendix VII later in this Prospectus for more detailed information
on the annuity maturity date in New York and Pennsylvania.
Before the last day by which 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: (i) transfers (if permitted in the
future) among the variable investment options if a Variable Immediate Annuity
payout option is selected; and (ii) withdrawals or contract surrender (subject
to a market value adjustment) if an Income Manager annuity payout option is
chosen.
46 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 An administrative charge
o A distribution charge
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 each contract date anniversary -- an annual administrative charge, if
applicable.
o At the time you make certain withdrawals or surrender your contract -- a
withdrawal charge.
o On each contract date anniversary -- a charge if you elect a death benefit
(other than the Standard death benefit).
o On each contract date anniversary -- a charge for the Guaranteed minimum
income benefit, if you elect this optional benefit.
o On each contract date anniversary -- a charge for Protection Plus, if you
elect this optional benefit.
o On the first 10 contract date anniversaries -- a charge for GPB Option 2,
if you elect this optional 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.
The charges under the contracts are designed to cover, in the aggregate, our
direct and indirect costs of selling, administering and providing benefits
under the contracts. They are also designed, in the aggregate, to compensate us
for the risks of loss we assume pursuant to the contracts. If, as we expect,
the charges that we collect from the contracts exceed our total costs in
connection with the contracts, we will earn a profit. Otherwise, we will incur
a loss.
The rates of certain of our charges have been set with reference to estimates
of the amount of specific types of expenses or risks that we will incur. In
most cases, this Prospectus identifies such expenses or risks in the name of
the charge; however, the fact that any charge bears the name of, or is designed
primarily to defray, a particular expense or risk does not mean that the amount
we collect from that charge will never be more than the amount of such expense
or risk. Nor does it mean that we may not also be compensated for such expense
or risk out of any other charges we are permitted to deduct by the terms of the
policies.
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.
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 Standard death
benefit. The daily charge is equivalent to an annual rate of .75% 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 income 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. Lastly,
we assume a mortality risk to the extent that at the time of death, the
Guaranteed minimum 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.
ADMINISTRATIVE CHARGE
We deduct a daily charge from the net assets in each variable investment
option. The charge, together with the annual administrative charge described
below, is to compensate us for administrative expenses under the contracts. The
daily charge is equivalent to an annual rate of 0.30% of the net assets in each
variable investment option.
DISTRIBUTION CHARGE
We deduct a daily charge from the net assets in each variable investment option
to compensate us for a portion of our sales expenses under the contracts. The
daily charge is equivalent to an annual rate of 0.20% of the net assets in each
variable investment option.
ANNUAL ADMINISTRATIVE CHARGE
We deduct an administrative charge from your account value on each contract
date anniversary. We deduct the charge if your account value on the last
business day of the contract year is less than $50,000. If your account value
on such date is $50,000 or more, we do not deduct the charge. During the first
two contract years, the charge is equal to $30 or, if less, 2% of your account
value. The charge is $30 for contract years three and later.
We will deduct this charge from your value in the variable investment options
and the guaranteed interest option (see Appendix VII later in
Charges and expenses 47
this Prospectus to see if deducting this charge from the guaranteed interest
option is permitted in your state) on a pro rata basis. If those amounts are
insufficient, we will deduct all or a portion of the charge from the fixed
maturity options (other than the Special 10 year fixed maturity option) in the
order of the earliest maturity date(s) first. If such fixed maturity option
amounts are insufficient, we will deduct all or a portion of the charge from
the account for special dollar cost averaging. If such amounts are still
insufficient, we will deduct any remaining portion from the Special 10 year
fixed maturity option. If the contract is surrendered or annuitized or a death
benefit is paid, we will deduct a pro rata portion of the charge for that year.
A market value adjustment will apply to deductions from the fixed maturity
options (including the Special 10 year fixed maturity option).
If your account value is insufficient to pay this charge, your contract will
terminate without value and you will lose any applicable guaranteed benefits.
Please see "Termination of your contract" in "Determining your contract value"
earlier in this Prospectus.
WITHDRAWAL CHARGE
A withdrawal charge applies in two circumstances: (1) if you make one or more
withdrawals during a contract year that, in total, exceed the 10% free
withdrawal amount, described below, or (2) if you surrender your contract to
receive its cash value or apply your cash value to a non-life contingent payout
option.
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% 7% 6% 6% 5% 3% 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 your contract as withdrawn first. See "Tax
information" later in this Prospectus and in the SAI.
For New York and Pennsylvania contracts for annuitants who are age 84 or 85 at
issue, please see Appendix VII later in this Prospectus for possible withdrawal
charge schedule variations.
In order to give you the exact dollar amount of the withdrawal you request, we
deduct the amount of the withdrawal and 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 charge in proportion to the
amount of the withdrawal subtracted from each investment option. The withdrawal
charge helps cover our sales expenses.
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 beginning of each contract
year, or in the case of the first contract year, your initial contribution,
minus any other withdrawals made during the contract year. The 10% free
withdrawal amount does not apply if you surrender your contract except where
required by law.
For NQ contracts issued to a charitable remainder trust, the free withdrawal
amount will equal the greater of: (1) the current account value less
contributions that have not been withdrawn (earnings in the contract) and (2)
the 10% free withdrawal amount defined above.
Certain withdrawals. If you elected the Guaranteed minimum income benefit
and/or the Greater of 6% roll up to age 85 or the annual ratchet to age 85
enhanced death benefit, the withdrawal charge will be waived for any withdrawal
that, together with any prior withdrawals made during the contract year, does
not exceed 6% of the beginning of contract year rollup portion of the related
benefit bases. If your withdrawals exceed the amount described above, this
waiver is not applicable to that withdrawal nor to any subsequent withdrawal
for the life of the contract.
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, or U.S.
Virgin Islands) 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, if the conditions described in (i), (ii) or
(iii) above existed at the time a contribution was remitted or if the condition
began within 12 months of the period following remittance. Some states may not
permit us to waive the withdrawal charge in the above circumstances, or may
limit the circumstances for
48 Charges and expenses
which the withdrawal charge may be waived. Your financial professional can
provide more information or you may contact our processing office.
For contracts issued in New York, please see Appendix VII later in this
Prospectus for the New York withdrawal charge schedule applicable to monies
withdrawn from and transferred among the fixed maturity options.
GUARANTEED MINIMUM DEATH BENEFIT CHARGE
ANNUAL RATCHET TO AGE 85. If you elect the Annual Ratchet to age 85 enhanced
death benefit, we deduct a charge annually from your account value on each
contract date anniversary for which it is in effect. The charge is equal to
0.25% of the Annual Ratchet to age 85 benefit base.
GREATER OF 6% ROLL UP TO AGE 85 OR ANNUAL RATCHET TO AGE 85. If you elect this
enhanced death benefit, we deduct a charge annually from your account value on
each contract date anniversary for which it is in effect. The charge is equal
to 0.60% of the greater of the 6% Roll up to age 85 or the Annual Ratchet to
age 85 benefit base for which it is in effect.
We will deduct this charge from your value in the variable investment options
and the guaranteed interest option (see Appendix VII later in this Prospectus
to see if deducting this charge from the guaranteed interest option is
permitted in your state) on a pro rata basis. If these amounts are
insufficient, we will deduct all or a portion of the charge from the fixed
maturity options (other than the Special 10 year fixed maturity option) in the
order of the earliest maturity date(s) first. If such fixed maturity option
amounts are insufficient, we will deduct all or a portion of the charge from
the account for special dollar cost averaging. If such amounts are still
insufficient, we will deduct any remaining portion from the Special 10 year
fixed maturity option. If the contract is surrendered or annuitized or a death
benefit is paid, we will deduct a pro rata portion of the charge for that year.
A market value adjustment will apply to deductions from the fixed maturity
options (including the Special 10 year fixed maturity option).
If your account value is insufficient to pay this charge, your contract will
terminate without value and you will lose any applicable guaranteed benefits.
Please see "Termination of your contract" in "Determining your contract value"
earlier in this Prospectus.
There is no additional charge for the standard death benefit.
GUARANTEED PRINCIPAL BENEFIT OPTION 2
If you purchase GPB Option 2, we deduct a charge annually from your account
value on the first 10 contract date anniversaries. The charge is equal to 0.50%
of the account value. We will deduct this charge from your value in the
variable investment options and the guaranteed interest option (see Appendix
VII later in this Prospectus to see if deducting this charge from the
guaranteed interest option is permitted in your state) on a pro rata basis. If
these amounts are insufficient, we will deduct any remaining portion of the
charge from amounts in any fixed maturity options (other than the Special 10
year fixed maturity option) in the order of the earliest maturity date(s)
first. If such amounts are insufficient, we will deduct all or a portion from
the account for special dollar cost averaging. If such amounts are still
insufficient, we will deduct any remaining portion from the Special 10 year
fixed maturity option. If the contract is surrendered or annuitized or a death
benefit is paid, we will deduct a pro rata portion of the charge for that year.
A market value adjustment will apply to deductions from the fixed maturity
options (including the Special 10 year fixed maturity option).
GUARANTEED MINIMUM INCOME BENEFIT CHARGE
If you elect the Guaranteed minimum income benefit, we deduct a charge annually
from your account value on each contract date anniversary until such time as
you exercise the Guaranteed minimum income benefit, elect another annuity
payout option, or the contract date anniversary after the annuitant reaches age
85, whichever occurs first. The charge is equal to 0.65% of the applicable
benefit base in effect on the contract date anniversary.
We will deduct this charge from your value in the variable investment options
and the guaranteed interest option (see Appendix VII later in this Prospectus
to see if deducting this charge from the guaranteed interest option is
permitted in your state) on a pro rata basis. If those amounts are
insufficient, we will deduct all or a portion of the charge from the fixed
maturity options in the order of the earliest maturity date(s) first. If such
fixed maturity option amounts are still insufficient, we will deduct all or a
portion of the charge from the account for special dollar cost averaging. If
the contract is surrendered or annuitized or a death benefit is paid, we will
deduct a pro rata portion of the charge for that year. A market value
adjustment will apply to deductions from the fixed maturity options .
If your account value is insufficient to pay this charge, your contract will
terminate without value and you will lose any applicable guaranteed benefits.
Please see "Termination of your contract" in "Determining your contract value"
earlier in this Prospectus.
PROTECTION PLUS
If you elect Protection Plus, we deduct a charge annually from your account
value on each contract date anniversary for which it is in effect. The charge
is equal to 0.35% of the account value on each contract date anniversary. We
will deduct this charge from your value in the variable investment options and
the guaranteed interest option on a pro rata basis. If those amounts are
insufficient, we will deduct all or a portion of the charge from the fixed
maturity options (other than the Special 10 year fixed maturity option) in the
order of the earliest maturity date(s) first. If such fixed maturity option
amounts are insufficient, we will deduct all or a portion of the charge from
the account for special dollar cost averaging. If such amounts are still
insufficient, we will deduct any remaining portion from the Special 10 year
fixed maturity option. If the contract is surrendered or annuitized or a death
benefit is paid, we will deduct a pro rata portion of the charge for that year.
A market value adjustment will apply to deductions from the fixed maturity
options (including the Special 10 year fixed maturity option).
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
Charges and expenses 49
deduct the charge from the amount applied to provide an annuity payout option.
The current tax charge that might be imposed varies by jurisdiction and ranges
from 0% to 3.5%.
VARIABLE IMMEDIATE ANNUITY PAYOUT OPTION ADMINISTRATIVE FEE
We deduct a fee of $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 Management fees ranging from 0.10% to 1.50%.
o 12b-1 fees of either 0.25% or 0.35%.
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 prospectuses for the Trusts.
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 Guaranteed minimum income
benefit or the Guaranteed minimum death benefit, or offer variable investment
options that invest in shares of the Trusts 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 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,
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.
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 would be
unfairly discriminatory.
50 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.
Under jointly owned contracts, the surviving owner is considered the
beneficiary, and will take the place of any other beneficiary. You may be
limited as to the beneficiary you can designate in a Rollover TSA contract. In
a QP contract, the beneficiary must be the trustee. Where an NQ contract is
owned by a minor pursuant to the Uniform Gift to Minors Act or the Uniform
Transfers to Minors Act, the beneficiary must be the estate of the annuitant.
Where an IRA contract is owned in a custodial individual retirement account,
the custodian must be the beneficiary so that the custodian can reinvest or
distribute the death benefit as the beneficiary of the account desires.
The death benefit is equal to your account value (without adjustment for any
otherwise applicable negative market value adjustment) or, if greater, the
applicable Guaranteed minimum death benefit. We determine the amount of the
death benefit (other than the applicable Guaranteed minimum death benefit) and
any amount applicable under the Protection Plus feature, 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.
The amount of the applicable Guaranteed minimum death benefit will be such
Guaranteed minimum death benefit as of the date of the annuitant's death
adjusted for any subsequent withdrawals. The death benefit will be less a
deduction for any outstanding loan plus accrued interest on the date that the
death benefit payment is made (applies to Rollover TSA only).
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, a
surviving spouse who is the sole primary beneficiary of the deceased
owner/annuitant can choose to be treated as the successor owner/annuitant and
continue the contract. The Successor owner/ annuitant feature is only
available under NQ and individually owned IRA contracts (other than Inherited
IRAs).
For NQ and 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.
When the owner is not the annuitant under an NQ contract and the owner dies
before annuity payments begin, the beneficiary named to receive the death
benefit upon the annuitant's death will become the successor owner. If you do
not want this beneficiary 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. The surviving
owner automatically takes the place of any other beneficiary designation.
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.
An eligible successor owner, including a surviving joint owner after the first
owner dies, may elect the beneficiary continuation option for NQ contracts
discussed in "Beneficiary continuation option" below.
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.
SUCCESSOR OWNER AND ANNUITANT
If you are both the contract owner and the annuitant, and your spouse is the
sole primary beneficiary or the joint owner, then your spouse may elect to
receive the death benefit or continue the contract as successor
owner/annuitant. The successor owner/annuitant must be 85 or younger as of the
date of the non-surviving spouse's death.
Payment of death benefit 51
If your surviving spouse decides to continue the contract, then as of the date
we receive satisfactory proof of your death, any required instructions,
information and forms necessary to effect the Successor owner/annuitant
feature, we will increase the account value to equal your elected Guaranteed
minimum death benefit as of the date of your death if such death benefit is
greater than such account value, plus any amount applicable under the
Protection Plus feature, and adjusted for any subsequent withdrawals. 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 considered to be withdrawn
only after all other amounts have been withdrawn.
We will determine whether your applicable Guaranteed minimum death benefit
option will continue as follows:
o If the successor owner/annuitant is age 75 or younger on the date of the
original owner/annuitant's death, and the original owner/ annuitant was age
84 or younger at death, the Guaranteed minimum death benefit continues
based upon the option that was elected by the original owner/annuitant and
will continue to grow according to its terms until the contract date
anniversary following the date the successor owner/annuitant reaches age
85.
o If the successor owner/annuitant is age 75 or younger on the date of the
original owner/annuitant's death, and the original owner/ annuitant was age
85 or older at death, we will reinstate the Guaranteed minimum death
benefit that was elected by the original owner/annuitant. The benefit will
continue to grow according to its terms until the contract date anniversary
following the date the successor owner/annuitant reaches age 85.
o If the successor owner/annuitant is age 76 or over on the date of the
original owner/annuitant's death, the Guaranteed minimum death benefit will
no longer grow, and we will no longer charge for the benefit.
Where a NQ contract is owned by a Living Trust, as defined in the contract, and
at the time of the annuitant's death the annuitant's spouse is the sole
beneficiary of the Living Trust, the Trustee, as owner of the contract, may
request that the spouse be substituted as annuitant as of the date of the
annuitant's death. No further change of annuitant will be permitted.
Where an IRA contract is owned in a custodial individual retirement account,
and your spouse is the sole beneficiary of the account, the custodian may
request that the spouse be substituted as annuitant after your death.
For information on the operation of this feature with the Guaranteed minimum
income benefit, see "Exercise of Guaranteed minimum death benefit" under "Our
Guaranteed minimum income benefit option" in "Contract features and benefits,"
earlier in this Prospectus. For information on the operation of this feature
with Protection Plus, see "Protection Plus" in "Guaranteed minimum death
benefit" under "Contract features and benefits," earlier in this Prospectus.
SPOUSAL PROTECTION
SPOUSAL PROTECTION OPTION FOR NQ CONTRACTS ONLY. This feature permits spouses
who are joint contract owners to increase the account value to equal the
guaranteed minimum death benefit, if higher, and by the value of any Protection
Plus benefit, if elected, upon the death of either spouse. This account value
"step up" occurs even if the surviving spouse was the named annuitant. If you
and your spouse jointly own the contract and one of you is the named annuitant,
you may elect the Spousal protection option at the time you purchase your
contract at no additional charge. Both spouses must be between the ages of 20
and 70 at the time the contract is issued and must each be named the primary
beneficiary in the event of the other's death.
The annuitant's age is generally used for the purpose of determining contract
benefits. However, for the Annual Ratchet to age 85 and the Greater of 6% Roll
up to age 85 or Annual Ratchet to age 85 guaranteed minimum death benefits and
the Protection Plus benefit, the benefit is based on the older spouse's age.
The older spouse may or may not be the annuitant.
If the annuitant dies prior to annuitization, the surviving spouse may elect to
receive the death benefit, including the value of the Protection Plus benefit,
or, if eligible, continue the contract as the sole owner/ annuitant by
electing the successor owner/annuitant option. If the non-annuitant spouse dies
prior to annuitization, the surviving spouse continues the contract
automatically as the sole owner/annuitant. In either case, the contract would
continue, as follows:
o As of the date we receive due proof of the spouse's death, the account
value will be re-set to equal the Guaranteed minimum death benefit as of
the date of the non-surviving spouse's death, if higher, increased by the
value of the Protection Plus benefit.
o The Guaranteed minimum death benefit continues to be based on the older
spouse's age for the life of the contract, even if the younger spouse is
originally or becomes the sole owner/annuitant.
o The Protection Plus benefit will now be based on the surviving spouse's age
at the date of the non-surviving spouse's death for the remainder of the
life of the contract. If the benefit had been previously frozen because the
older spouse had attained age 80, it will be reinstated if the surviving
spouse is age 75 or younger. The benefit is then frozen on the contract
date anniversary after the surviving spouse reaches age 80. If the
surviving spouse is age 76 or older, the benefit will be discontinued even
if the surviving spouse is the older spouse (upon whose age the benefit was
originally based).
o If the annuitant dies first, withdrawal charges will no longer apply to any
contributions made prior to the annuitant's death. If the non-annuitant
spouse dies first, the withdrawal charge schedule remains in effect with
regard to all contributions.
We will not allow Spousal protection to be added after contract issue. If there
is a change in owner or primary beneficiary, the Spousal protection benefit
will be terminated. If you divorce but do not change the owner or primary
beneficiary, Spousal protection continues.
BENEFICIARY CONTINUATION OPTION
This feature permits a designated individual, on the contract owner's death, to
maintain a contract in the deceased contract owner's name
52 Payment of death benefit
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, Roth IRA and NQ contracts, subject to state availability.
Please speak with your financial professional or see Appendix VII later in this
Prospectus for further information.
BENEFICIARY CONTINUATION OPTION FOR TRADITIONAL IRA AND ROTH IRA CONTRACTS
ONLY. The beneficiary continuation option must be elected by September 30th of
the year following the calendar year of your death and before any other
inconsistent election is made. Beneficiaries who do not make a timely election
will not be eligible for this 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 applicable death
benefit if such death benefit is greater than such account value, plus any
amount applicable under the Protection Plus feature, adjusted for any
subsequent withdrawals. Where an IRA contract is owned in a custodial
individual retirement account, the custodian may reinvest the death benefit in
an individual retirement annuity contract, using the account beneficiary as the
annuitant. Please speak with your financial professional for further
information.
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. For sole
spousal beneficiaries, payments may begin by December 31st of the calendar year
in which you would have reached age 70-1/2, if such time is later. For
traditional IRA contracts only, if you die before your Required Beginning Date
for Required Minimum Distributions, as discussed in the Statement of Additional
Information, the beneficiary may choose the "5-year rule" option instead of
annual payments over life expectancy. The 5-year rule is always available to
beneficiaries under Roth IRA contracts. If the beneficiary chooses this option,
the beneficiary may take withdrawals as desired, but the entire account value
must be fully withdrawn by December 31st of the calendar year which contains
the fifth anniversary of your death.
Under the beneficiary continuation option for IRA and Roth IRA
contracts:
o The contract continues in your name for the benefit of your beneficiary.
o This feature is only available if the beneficiary is an individual. Certain
trusts with only individual beneficiaries will be treated as individuals
for this purpose.
o If there is more than one beneficiary, each beneficiary's share will be
separately accounted for. It will be distributed over the beneficiary's own
life expectancy, if payments over life expectancy are chosen.
o The minimum amount that is required in order to elect the beneficiary
continuation option is $5,000 for each beneficiary.
o The beneficiary may make transfers among the investment options but no
additional contributions will be permitted.
o If you had elected the Guaranteed minimum income benefit, an optional
enhanced death benefit or GPB Option 2 under the contract, they will no
longer be in effect and charges for such benefits will stop. Also, any
minimum death benefit feature 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, if any, will apply.
o 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 required 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.
BENEFICIARY CONTINUATION OPTION FOR NQ CONTRACTS ONLY. This feature, also known
as Inherited annuity, may only be elected when the NQ contract owner dies
before the annuity commencement date, whether or not the owner and the
annuitant are the same person. If the owner and annuitant are different and the
owner dies before the annuitant, for purposes of this discussion, "beneficiary"
refers to the successor owner. For a discussion of successor owner, see "When
an NQ contract owner dies before the annuitant" earlier in this section. This
feature must be elected within 9 months following the date of your death and
before any other inconsistent election is made. Beneficiaries who do not make a
timely election will not be eligible for this option.
Generally, payments will be made once a year to the beneficiary over the
beneficiary's life expectancy, determined on a term certain basis and in the
year payments start. These payments must begin no later than one year after the
date of your death and are referred to as "scheduled payments." The beneficiary
may choose the "5-year rule" instead of scheduled payments over life
expectancy. If the beneficiary chooses the 5-year rule, there will be no
scheduled payments. Under the 5-year rule, the beneficiary may take withdrawals
as desired, but the entire account value must be fully withdrawn by the fifth
anniversary of your death.
Under the beneficiary continuation option for NQ contracts (regardless of
whether the owner and annuitant are the same person):
o This feature is only available if the beneficiary is an individual. It is
not available for any entity such as a trust, even if all of the
beneficiaries of the trust are individuals.
o The contract continues in your name for the benefit of your beneficiary.
o If there is more than one beneficiary, each beneficiary's share will be
separately accounted for. It will be distributed over the respective
beneficiary's own life expectancy, if scheduled payments are chosen.
Payment of death benefit 53
o The minimum amount that is required in order to elect the beneficiary
continuation option is $5,000 for each beneficiary.
o The beneficiary may make transfers among the investment options but no
additional contributions will be permitted.
o If you had elected the Guaranteed minimum income benefit, an optional
enhanced death benefit or GPB Option 2 under the contract, they will no
longer be in effect and charges for such benefits will stop. Also, any
minimum death benefit feature will no longer be in effect.
o If the beneficiary chooses the "5-year rule," withdrawals may be made at
any time. If the beneficiary instead chooses scheduled payments, the
beneficiary must also choose between two potential withdrawal options at
the time of election. If the beneficiary chooses "Withdrawal Option 1", the
beneficiary cannot later withdraw funds in addition to the scheduled
payments the beneficiary is receving; "Withdrawal Option 1" permits total
surrender only. "Withdrawal Option 2" permits the beneficiary to take
withdrawals, in addition to scheduled payments, at any time. However, the
scheduled payments under "Withdrawal Option 1" are afforded favorable tax
treatment as "annuity payments." See "Taxation of nonqualified annuities"
in "Tax Information" later in this Prospectus.
o Any partial withdrawals must be at least $300.
o Your beneficiary will have the right to name a beneficiary to receive any
remaining interest in the contract on the beneficiary's death.
o Upon the death of your beneficiary, the beneficiary he or she has named has
the option to either continue taking scheduled payments based on the
remaining life expectancy of the deceased beneficiary (if scheduled
payments were chosen) or to receive any remaining interest in the contract
in a lump sum. We will pay any remaining interest in the contract in a lump
sum if your beneficiary elects the 5-year rule. 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.
If you are both the owner and annuitant:
o 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 annuity account value to
equal the applicable death benefit if such death benefit is greater than
such account value, plus any amount applicable under the Protection Plus
feature, adjusted for any subsequent withdrawals.
o No withdrawal charges will apply to any withdrawals by the beneficiary.
If the owner and annuitant are not the same person:
o If the beneficiary continuation option is elected, the beneficiary
automatically becomes the new annuitant of the contract, replacing the
existing annuitant.
o The annuity account value will not be reset to the death benefit amount.
o The contract's withdrawal charge schedule will continue to be applied to
any withdrawal or surrender other than scheduled payments; the contract's
free corridor amount will continue to apply to withdrawals but does not
apply to surrenders.
o We do not impose a withdrawal charge on scheduled payments except if, when
added to any withdrawals previously taken in the same contract year,
including for this purpose a contract surrender, the total amount of
withdrawals and scheduled payments exceed the free corridor amount. See the
"Withdrawal charges" in "Charges and expenses" earlier in this Prospectus.
If a contract is jointly owned:
o The surviving owner supersedes any other named beneficiary and may elect
the beneficiary continuation option.
o If the deceased joint owner was also the annuitant, see "If you are both
the owner and annuitant" earlier in this section.
o If the deceased joint owner was not the annuitant, see "If the owner and
annuitant are not the same person" earlier in this section.
54 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 Equitable Accumulator(R) contracts owned by United
States individual taxpayers. The tax rules can differ, depending on the type of
contract, whether NQ, traditional IRA, Roth IRA, QP or TSA. 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
without notice. 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 or values under the contract, or payments under the contract,
for example, amounts due to beneficiaries, may be subject to federal or state
gift, estate, or inheritance 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 be
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 adviser 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") and Code Section 403(b)
Arrangements ("TSAs"), respectively: an IRA or 403(b) annuity contract such as
this one, or an IRA or 403(b)(7) custodial or other qualified account. Annuity
contracts can also be purchased in connection with retirement 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. More information on IRAs and TSAs is provided
in the SAI. 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 Accumulator's(R) choice of death benefits, the Guaranteed
minimum income benefit, special dollar cost averaging, selection of investment
funds, guaranteed interest option, fixed maturity options and its 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 arrangements.
You should be aware that cost may vary depending on the features and benefits
made available and the charges and expenses of the investment options or funds
that you elect. Although certain provisions of the Temporary Regulations on
required minimum distributions concerning the actuarial value of additional
contract benefits, which could have increased the amount required to be
distributed from annuity contracts funding qualified plans, TSAs and IRAs
currently have been suspended, these or similar provisions may apply in future
years. You may want to discuss with your tax adviser the potential implication
of these Regulations before you purchase this annuity contract or purchase
additional features under this annuity contract. See also Appendix III at the
end of this Prospectus for a discussion of QP contracts.
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 the 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).
Tax information 55
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 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.
PROTECTION PLUS FEATURE
In order to enhance the amount of the death benefit to be paid at the
annuitant's death, you may purchase a Protection Plus rider for your NQ
contract. Although we regard this benefit as an investment protection feature
which is part of the contract and which should have no adverse tax effect, it
is possible that the IRS could take a contrary position or assert that the
Protection Plus rider is not part of the contract. In such a case the charges
for the Protection Plus rider could be treated for federal income tax purposes
as a partial withdrawal from the contract. If this were so, such a deemed
withdrawal could be taxable, and for contract owners under age 59-1/2, also
subject to a tax penalty. Were the IRS to take this position, Equitable would
take all reasonable steps to attempt to avoid this result, which could include
amending the contract (with appropriate notice to you).
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
Equitable Accumulator(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 Equitable Accumulator(R) NQ contract.
An owner may 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. The IRS has not specifically addressed the tax treatment
of the Spousal protection benefit. Please consult with your tax adviser before
electing this feature.
BENEFICIARY CONTINUATION OPTION
We have received a private letter ruling from the IRS regarding certain tax
consequences of scheduled payments under the beneficiary continuation option
for NQ contracts. See the discussion "Beneficiary continuation option for NQ
Contracts only" in "Payment of death benefit" earlier in this Prospectus. Among
other things, the IRS rules that:
o scheduled payments under the beneficiary continuation option for NQ
contracts satisfy the death of owner rules of Section 72(s)(2) of the Code,
regardless of whether the beneficiary elects Withdrawal Option 1 or
Withdrawal Option 2;
o scheduled payments, any additional withdrawals under Withdrawal Option 2,
or contract surrenders under Withdrawal Option 1 will only be taxable to
the beneficiary when amounts are actually paid, regardless of the
Withdrawal Option selected by the beneficiary;
o a beneficiary who irrevocably elects scheduled payments with Withdrawal
Option 1 will receive "excludable amount" tax treatment on scheduled
payments. See "Annuity payments" earlier in this section. If the
beneficiary elects to surrender the contract before all scheduled payments
are paid, the amount received upon surrender is a non-annuity payment
taxable to the extent it exceeds any remaining investment in the contract.
The ruling specifically does not address the taxation of any payments received
by a beneficiary electing Withdrawal Option 2 (whether
56 Tax information
scheduled payments or any withdrawal that might be taken). There is no
assurance that we will receive any further rulings addressing the tax
consequences of payments under Withdrawal Option 2. Before electing the
beneficiary continuation option feature, the individuals you designate as
beneficiary or successor owner should discuss with their tax advisers the
consequences of such elections.
The tax treatment of a withdrawal after the death of the owner taken as a
single sum or taken as withdrawals under the 5-year rule is generally the same
as the tax treatment of a withdrawal from or surrender of 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, in accordance with IRS formulas.
INVESTOR CONTROL ISSUES
Under certain circumstances, the IRS has stated that you could be treated as
the owner (for tax purposes) of the assets of Separate Accounts 45 and 49. If
you were treated as the owner, you would be taxable on income and gains
attributable to the shares of the underlying portfolios.
The circumstances that would lead to this tax treatment would be that, in the
opinion of the IRS, you could control the underlying investment of Separate
Accounts 45 and 49. Recently, the IRS has said that the owners of variable
annuities will not be treated as owning the separate account assets provided
the underlying portfolios are restricted to variable life and annuity assets.
The variable annuity owners must have the right only to choose among the
portfolios, and must have no right to direct the particular investment
decisions within the portfolios.
Although we believe that, under current IRS guidance, you would not be treated
as the owner of the assets of Separate Accounts 45 and 49, there are some
issues that remain unclear. For example, the IRS has not issued any guidance as
to whether having a larger number of portfolios available, or an unlimited
right to transfer among them, could cause you to be treated as the owner. We do
not know whether the IRS will ever provide such guidance or whether such
guidance, if unfavorable, would apply retroactively to your contract.
Furthermore, the IRS could reverse its current guidance at any time. We reserve
the right to modify your contract as necessary to prevent you from being
treated as the owner of the assets of Separate Accounts 45 and 49.
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 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; and
o Roth IRAs, 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 (http://www.irs.gov).
Equitable Life designs its IRA contracts to qualify as individual retirement
annuities under Section 408(b) of the Internal Revenue Code. You may purchase
the contract as a traditional IRA or Roth IRA. The traditional IRAs we offer
are the Rollover IRA and Flexible Premium IRA. The versions of the Roth IRA
available are the Roth Conversion IRA and Flexible Premium Roth IRA. We also
offer the Inherited IRA for payment of post-death required minimum
distributions in traditional IRA and Roth IRA. The SAI contains the information
that the IRS requires you to have before you purchase an IRA. The disclosure
generally assumes direct ownership of the individual retirement annuity
contract. For contracts owned in a custodial individual retirement account, the
disclosure will apply only if you terminate your account or transfer ownership
of the contract to yourself.
Tax information 57
We have not applied for an opinion letter from the IRS to approve the
respective forms of the Equitable Accumulator(R) traditional and Roth IRA
contracts for use as a traditional and Roth IRA, respectively. We have received
IRS opinion letters approving the respective forms of a similar traditional IRA
and Roth IRA endorsement for use as a traditional 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 contracts submitted for IRS approval do not include every
feature possibly available under the Equitable Accumulator(R) traditional and
Roth IRA contracts.
The Inherited IRA beneficiary continuation contract has not been submitted to
the IRS for approval as to form for use as a traditional IRA or Roth IRA.
Equitable intends to submit both traditional and Roth IRA versions of the
contract for formal approval, respectively. However, it is not clear whether
and when such approval may be received.
PROTECTION PLUS(SM) FEATURE
The Protection Plus feature is offered for IRA contracts, subject to state and
contract availability. We have received IRS opinion letters that the contract
with a similar Protection Plus feature qualifies 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 contracts
submitted for IRS approval do not include every feature possibly available
under the Equitable Accumulator(R) traditional and Roth IRA contracts. You
should discuss with your tax adviser whether you should consider purchasing an
Accumulator(R) IRA or Accumulator(R) Roth IRA with optional Protection Plus
feature.
CONTRIBUTIONS
Individuals may make three different types of contributions to an 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 IRAs of the same type
("direct transfers").
In addition, an individual may make a taxable rollover contribution from a
traditional IRA to a Roth IRA ("conversion" contributions).
Contributions to all types of IRAs are compensation-based. They are either made
from your current compensation or have a connection with past compensation (for
example, rollover contributions from an eligible retirement plan that you had
with an employer related to past compensation). Under certain circumstances,
your nonworking spouse, former spouse or surviving spouse may contribute to an
IRA. You can make regular contributions for any year to a traditional IRA
within federal tax limits up until the calendar year you reach age 70-1/2.
Regular contributions for any year to a Roth IRA can be made at any time during
your life, subject to federal tax law limits.
The amount of contributions you may make to an IRA for any year and whether
such contributions are eligible for special tax treatment (for example,
deductibility from income or a special credit) may vary, depending on your
income, age and whether you participate in an employer-sponsored retirement
plan. Roth IRA contributions are not tax deductible. The maximum regular
contribution that can be made to all of your IRAs (whether traditional or Roth)
for the taxable year for which the contribution is made is $3,000 for 2004 and
$4,000 for 2005. The maximum regular contribution is increased to $3,500 for
2004 and $4,500 for 2005 if you are at least age 50 at any time during the
taxable year for which the contribution is made.
Rollover and transfer contributions are not subject to dollar limits. Rollover
contributions may be made to a traditional IRA from "eligible retirement plans"
which include other traditional IRAs, qualified plans, TSAs and governmental
employer 457(b) plans. For Roth IRAs, rollover contributions may be made from
other Roth IRAs and traditional IRAs. The conversion of a traditional IRA to a
Roth IRA is taxable. Direct transfer contributions may only be made directly
from one traditional IRA to another or from one Roth IRA to another.
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 adviser 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.
A more complete discussion of contributions to traditional IRAs and Roth IRAs
is contained in the SAI.
WITHDRAWALS AND DISTRIBUTIONS
You can withdraw any or all of your funds from an IRA at any time; you do not
need to wait for a special event like retirement. Earnings in IRAs are not
subject to federal income tax until amounts are paid to you or your
beneficiary. Withdrawals from an IRA, surrender of an IRA, death benefits from
an IRA and annuity payments from an IRA may be fully or partially taxable.
Withdrawals and distributions from IRAs are taxable as ordinary income (not
capital gain).
Payments from traditional IRAs and Roth IRAs are taxed differently. Payments
from traditional IRAs are generally fully taxable unless you have made
nondeductible regular contributions or rolled over after-tax contributions. In
any event, the issuer of the traditional IRA is entitled to report the
distribution as fully taxable and it is your responsibility to calculate the
taxable and tax-free portions of any traditional IRA payments on your own tax
returns.
Distributions from Roth IRAs generally receive return of contribution treatment
first under federal income tax calculation rules before any income is taxable.
Certain distributions from Roth IRAs may qualify for fully tax-free treatment.
These are distributions after you reach age 59-1/2, die, become disabled or meet
a qualified first-time homebuyer tax rule. You also have to meet a five-year
aging period.
A distribution from a traditional IRA will not be taxable if it is rolled over
to an eligible retirement plan. A distribution from a Roth IRA will not be
taxable if it is rolled over to another Roth IRA.
58 Tax information
Taxable withdrawals or distributions from IRAs may be subject to an additional
10% penalty tax if you are under age 59-1/2, unless an exception applies.
Traditional IRAs are subject to required minimum distribution rules which
require that amounts begin to be distributed in a prescribed manner from the
IRA after the owner reaches age 70-1/2. These rules also require distributions
after the owner's death. No distributions are required to be made from Roth
IRAs until after the Roth IRA owner's death, but then the required minimum
distribution rules apply.
A more complete discussion of the tax aspects of withdrawals and distributions
for traditional IRAs and Roth IRAs is contained in the SAI.
SPECIAL RULES FOR CONTRACTS FUNDING QUALIFIED PLANS
For QP contracts, your plan administrator or trustee notifies you as to tax
consequences. See Appendix III at the end of this Prospectus.
TAX-SHELTERED ANNUITY CONTRACTS (TSAS)
GENERAL
This section of the prospectus covers some of the special tax rules that apply
to annuity contracts under Section 403(b) of the Internal Revenue Code (TSAs).
Generally, there are two types of funding vehicles available for 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.
PROTECTION PLUS FEATURE
The Protection Plus feature is offered for Rollover TSA contracts, subject to
state and contract availability. There is a limit to the amount of life
insurance benefits that TSAs may offer. Although we view the optional
Protection Plus benefit as an investment protection feature which should have
no adverse tax effect and not as a life insurance benefit, the IRS has not
specifically addressed this question. It is possible that the IRS could take a
contrary position regarding tax qualification or assert that the Protection
Plus rider is not a permissible part of a TSA contract. If the IRS were to take
the position that the optional Protection Plus benefit is not part of the
contract, in such a case, the charges for the Protection Plus rider could be
treated for federal income tax purposes as a partial withdrawal from the
contract. If this were so, such a deemed withdrawal could affect the tax
qualification of the TSA and could be taxable. Were the IRS to take any adverse
position, Equitable would take all reasonable steps to attempt to avoid any
adverse result, which would include amending the contract (with appropriate
notice to you). You should discuss with your tax adviser whether you should
consider purchasing an Accumulator(R) Rollover TSA contract with the optional
Protection Plus feature.
CONTRIBUTIONS TO TSAS
There are two ways you can make contributions to this Equitable Accumulator(R)
Rollover TSA contract:
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.
If you make a direct transfer, you must fill out our transfer form.
ROLLOVER OR DIRECT TRANSFER CONTRIBUTIONS. You must establish your TSA with
funds that are directly transferred from another 403(b) arrangement or rolled
over from another 403(b) arrangement. You may make subsequent rollover
contributions to your Rollover TSA contract from these sources: qualified
plans, governmental employer 457(b) plans, and traditional IRAs as well as
other TSAs and 403(b) arrangements . All rollover contributions must be pre-tax
funds only with appropriate documentation satisfactory to us.
You should discuss with your tax adviser 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.
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 Equitable Accumulator(R) contract receiving the funds has provisions at
least as restrictive as the source contract.
Before you transfer funds to an Equitable Accumulator(R) Rollover TSA contract,
you may have to obtain your employer's authorization or demonstrate that you do
not need employer authorization.
Contributions to TSAs are discussed in greater detail in the SAI.
DISTRIBUTIONS FROM 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. Your employer will tell us this when you establish the TSA through
a direct transfer.
You may also need spousal consent for certain transactions and
payments.
WITHDRAWAL RESTRICTIONS. If this is a Revenue Ruling 90-24 direct transfer, we
will treat all amounts transferred to this contract and any future earnings on
the amount transferred as not eligible for withdrawal until one of the
following events happens:
o you are severed from employment with the employer which provided the funds
to purchase the TSA you are transferring to the Equitable Accumulator(R)
Rollover TSA; or
o you reach age 59-1/2; or
o you die; or
o you become disabled (special federal income tax definition); or
Tax information 59
o you take a hardship withdrawal (special federal income tax definition).
The amount of funds subject to withdrawal restrictions may depend on the source
of the funds used to establish the Accumulator(R) TSA.
TAX TREATMENT OF DISTRIBUTIONS. Amounts held under TSAs are generally not
subject to federal income tax until benefits are distributed. Distributions
include withdrawals from your TSA contract and annuity payments from your TSA
contract. Death benefits paid to a beneficiary are also taxable distributions.
Unless an exception applies, amounts distributed from TSAs are includable in
gross income as ordinary income. Distributions from TSAs may be subject to 20%
federal income tax withholding. See "Federal and state income tax withholding
and information reporting" below. In addition, TSA distributions may be subject
to additional tax penalties.
If you have made after-tax contributions, you will have a tax basis in your TSA
contract, which will be recovered tax-free. Since we currently do not accept
after-tax funds, we do not track your investment in the contract, if any. We
will report all distributions from this Rollover TSA as fully taxable. It is
your responsibility to determine how much of the distribution is taxable.
A penalty tax of 10% of the taxable portion of a distribution applies to
distributions from TSAs before you reach age 59-1/2 unless an exception applies.
Distributions from TSAs are discussed in greater detail in the SAI.
LOANS FROM TSAS
Loans are generally not treated as a taxable distribution. You may take loans
from a TSA unless restricted by the employer (for example, under an employer
plan subject to ERISA). If you cannot take a loan, or cannot take a loan
without approval from the employer who provided the funds, we will have this
information in our records based on what you and the employer who provided the
TSA funds told us when you purchased your contract.
See Appendix VII later in this Prospectus for any state restrictions you may be
subject to if you take a loan from a Rollover TSA contract.
Loans from TSAs are discussed in greater detail in the SAI.
TAX-DEFERRED ROLLOVERS AND DIRECT TRANSFERS
You may roll over an "eligible rollover distribution" from a TSA into another
eligible retirement plan (a qualified plan, a governmental employer 457(b) plan
(separate accounting required), another TSA or a traditional IRA) which agrees
to accept the rollover.
A spousal beneficiary may also roll over death benefits or certain
divorce-related payments.
Direct transfers of TSA funds from one TSA to another under Revenue Ruling
90-24 are not distributions.
Rollovers and transfers from TSAs are discussed in greater detail in the SAI.
REQUIRED MINIMUM DISTRIBUTIONS
TSAs are subject to required minimum distribution rules beginning at age 70-1/2
or separation from service, if later. These rules are discussed in greater
detail in the SAI.
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 $17,280 in periodic
60 Tax information
annuity payments in 2004, 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), 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.
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 AND QUALIFIED PLAN DISTRIBUTIONS
Unless you have the distribution go directly to the new plan, eligible rollover
distributions from qualified plans and TSAs are subject to mandatory 20%
withholding. The plan administrator is responsible for withholding from
qualified plan distributions. An eligible rollover distribution from a TSA or a
qualified plan can be rolled over to another eligible retirement plan. All
distributions from a TSA 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 from service with the employer; 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
o substantially equal periodic payments made for a specified period of 10
years or more; or
o hardship withdrawals; 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.
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 No. 49 for taxes. We
do not now, but may in the future set up reserves for such taxes.
Tax information 61
8. More information
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ABOUT SEPARATE ACCOUNT NO. 49
Each variable investment option is a subaccount of Separate Account No. 49. We
established Separate Account No. 49 in 1996 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 No. 49 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 No. 49 operations are
accounted for without regard to Equitable Life's other operations.
Separate Account No. 49 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 the Separate Account No. 49.
Each subaccount (variable investment option) within the Separate Accounts
invests solely in class IB 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, either Separate Account, 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 each Separate Account 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 each Separate Account
or a variable investment option directly);
(5) to deregister the Separate Accounts under the Investment Company Act of
1940;
(6) to restrict or eliminate any voting rights as to the Separate Accounts; 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
The Trusts 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.
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, and other aspects
of its operations, appears in the prospectuses for each Trust, which accompany
this Prospectus, or in the 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.
FMO rates are determined daily. The rates in the table below are illustrative
only and will most likely differ from the rates applicable at time of purchase.
Current FMO rates can be obtained from your financial professional.
For example, the rates to maturity for new allocations as of February 13, 2004
and the related price per $100 of maturity value were as shown below:
- --------------------------------------------------------------------------------
Fixed Maturity
Options with
February 13th Rate to Maturity Price
Maturity Date of as of Per $100 of
Maturity Year February 13, 2004 Maturity Value
- --------------------------------------------------------------------------------
2005 3.00% * $ 97.08
2006 3.00% * $ 94.25
2007 3.00% * $ 91.51
2008 3.00% * $ 88.84
2009 3.00% * $ 86.25
2010 3.00% * $ 83.73
2011 3.00% * $ 81.30
2012 3.30% $ 77.11
2013 3.53% $ 73.16
2014 3.73% $ 69.31
- --------------------------------------------------------------------------------
* Since these rates to maturity are 3%, no amounts could have been allocated to
these options.
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 any 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.
62 More information
(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 for your FMO based on the
rate for a new FMO issued on the same date and having the same
maturity date as your FMO; if the same maturity date is not available
for new FMOs, we determine a rate that is between the rates for new
FMO maturities that immediately precede and immediately follow your
FMO's maturity date.
(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.
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 IV 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) 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 by using a widely published index. We reserve the right to add up to
0.25% 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 expect the rates to maturity for the fixed maturity options 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 and the account for special dollar cost averaging, 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
WIRE TRANSMITTALS AND ELECTRONIC APPLICATIONS
We accept initial and subsequent contributions sent by wire to our processing
office by agreement with certain broker-dealers. Such transmittals must be
accompanied by information we require to allocate your contribution. Wire
orders not accompanied by complete information may be retained as described
under "How you can make your contributions" under "Contract features and
benefits" earlier in this Prospectus.
Even if we accept the wire order and essential information, a contract
generally will not be issued until we receive and accept a properly completed
application. In certain cases we may issue a contract based on information
provided through certain broker-dealers with which we
More information 63
have established electronic facilities. In any such cases, you must sign our
Acknowledgement of Receipt form.
Where we require a signed application, the above procedures do not apply and no
financial transactions will be permitted until we receive the signed
application and have issued the contract. Where we issue a contract based on
information provided through electronic facilities, we require an
Acknowledgement of Receipt form, and financial transactions are only permitted
if you request them in writing, sign the request and have its signature
guaranteed, until we receive the signed Acknowledgement of Receipt form. After
your contract has been issued, additional contributions may be transmitted by
wire.
In general, the transaction date for electronic transmissions is the date on
which we receive at our regular processing office all required information and
the funds due for your contribution. We may also establish same-day electronic
processing facilities with a broker-dealer that has undertaken to pay
contribution amounts on behalf of its customers. In such cases, the transaction
date for properly processed orders is the business day on which the
broker-dealer inputs all required information into its electronic processing
system. You can contact us to find out more about such arrangements.
After your contract has been issued, additional contributions may be
transmitted by wire.
AUTOMATIC INVESTMENT PROGRAM -- FOR NQ, FLEXIBLE PREMIUM IRA AND FLEXIBLE
PREMIUM ROTH IRA CONTRACTS ONLY
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, Flexible Premium IRA or Flexible Premium Roth IRA contract on a
monthly or quarterly basis. AIP is not available for Rollover IRA, Roth
Conversion IRA, QP or Rollover TSA contracts, nor is it available with GPB
Option 2.
For NQ contracts, the minimum amounts we will deduct are $100 monthly and $300
quarterly. Under Flexible Premium IRA and Flexible Premium Roth IRA contracts,
the minimum amount is $50. AIP additional contributions may be allocated to any
of the variable investment options and available fixed maturity options, but
not the account for special dollar cost averaging. 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.
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. on a business day, we will use the next business day.
o A loan request under your Rollover TSA contract will be processed on the
first business day of the month following the date on which the properly
completed loan request form is received.
o If your transaction is set to occur on the same day of the month as the
contract date and that date is the 29th, 30th or 31st of the month, then
the transaction will occur on the 1st day of the next month.
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 If we have entered into an agreement with your broker-dealer for automated
processing of contributions upon receipt of customer order, your
contribution will be considered received at the time your broker-dealer
receives your contribution and all information needed to process your
application, along with any required documents, and transmits your order to
us in accordance with our processing procedures. Such arrangements may
apply to initial contributions, subsequent contributions, or both, and may
be commenced or terminated at any time without prior notice. If required by
law, the "closing time" for such orders will be earlier than 4 p.m.,
Eastern Time.
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 the guaranteed interest option will receive the
crediting rate in effect on that business day for the specified time
period.
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
(unless a rate lock-in is applicable).
o Initial contributions allocated to the account for special dollar cost
averaging receive the interest rate in effect on that business day. At
certain times, we may offer the opportunity to lock in the interest rate
for an initial contribution to be received under Section 1035 exchanges and
trustee to trustee transfers. Your financial professional can provide
information or you can call our processing office.
o Transfers to or from variable investment options will be made at the value
next determined after the close of the business day.
64 More information
o Transfers to a fixed maturity option will be based on the rate to maturity
in effect for that fixed maturity option on the business day of the
transfer.
o Transfers to the guaranteed interest option will receive the crediting rate
in effect on that business day for the specified time period.
o For the interest sweep option, 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;
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.
The Trusts sell their shares to Equitable Life separate accounts in connection
with Equitable Life's annuity and/or variable life insurance products, and to
separate accounts of insurance companies, both affiliated and unaffiliated with
Equitable Life. EQ Advisors Trust and AXA Premier VIP Trust also sell their
shares to the trustee of a qualified plan for Equitable Life. We currently do
not foresee any disadvantages to our policyowners arising out of these
arrangements. However, the Board of Trustees or Directors of each Trust intends
to monitor events 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 Board's response insufficiently protects our policyowners, we
will see to it that appropriate action is taken to do so.
SEPARATE ACCOUNT NO. 49 VOTING RIGHTS
If actions relating to the Separate Account 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 No. 49, our ability to meet our obligations under the
contracts, or the distribution of the contracts.
ABOUT OUR INDEPENDENT AUDITORS
The consolidated financial statements of Equitable Life at December 31, 2003
and 2002, and for the three years ended December 31, 2003 incorporated in this
Prospectus by reference to the 2003 Annual Report on Form 10-K are incorporated
in reliance on the report of PricewaterhouseCoopers LLP, independent auditors,
given on the authority of said firm as experts in auditing and accounting.
FINANCIAL STATEMENTS
The financial statements of Separate Account No. 49, 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 1-800-789-7771.
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
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 an IRA, QP or Rollover TSA contract
except by surrender to us. If your individual retirement annuity contract is
held in your custodial individual retirement account, you may only assign or
transfer ownership of such an IRA contract to yourself. Loans are not available
and you cannot assign IRA and QP contracts as security for a loan or other
obligation. If the employer that provided the funds does not restrict them,
loans are available under a Rollover TSA contract.
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 IRA, QP or Rollover TSA
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.
More information 65
DISTRIBUTION OF THE CONTRACTS
The contracts are distributed by both AXA Advisors, LLC ("AXA Advisors") and
AXA Distributors, LLC ("AXA Distributors"). Both AXA Advisors and AXA
Distributors serve as principal underwriters of Separate Account No. 49. The
offering of the contracts is intended to be continuous.
AXA Advisors (the successor to EQ Financial Consultants, Inc.), an affiliate of
Equitable Life, and AXA Distributors, an indirect wholly owned subsidiary of
Equitable Life, are registered with the SEC as broker dealers and are members
of the National Association of Securities Dealers, Inc. Their principal
business address is 1290 Avenue of the Americas, New York, NY 10104. Both
broker dealers act as distributors for other Equitable Life annuity products.
AXA Distributors is a successor by merger to all of the functions, rights and
obligations of Equitable Distributors, Inc. ("EDI"). Like AXA Distributors, EDI
was owned by Equitable Holdings, LLC.
The contracts are sold by financial professionals of AXA Advisors and its
affiliates and by financial professionals of AXA Distributors, as well as by
affiliated and unaffiliated broker dealers who have entered into selling
agreements with AXA Distributors.
We pay broker-dealer sales compensation that will generally not exceed 6.5% of
the total contributions made under the contracts. Broker-dealers receiving
sales compensation will generally pay a portion of it to their financial
representatives as commissions related to the sales of the contracts. AXA
Distributors may also receive compensation and reimbursement for its marketing
services under the terms of its distribution agreement with Equitable Life, as
well as payments from portfolio advisers for sales meetings and/or seminar
sponsorships.
Equitable and/or AXA Distributors and/or AXA Advisors may use their respective
past profits or other resources to pay brokers and other financial
intermediaries for certain expenses they incur in providing services intended
to promote the sales of our products and/or shares in the underlying Trusts.
These services may include sales personnel training, prospectus review,
marketing and related services as well as support services that benefit
contract owners.
Similarly, in an effort to promote the sale of our products, AXA Advisors may
provide its financial professionals and managerial personnel with a higher
percentage of sales commissions and/or more compensation for the sale of an
Equitable variable product than it would for the sale of another product. Such
practice is known as providing differential compensation. Other forms of
compensation financial professionals may receive include health and retirement
benefits, credits towards stock options awards and rewards for sales incentive
campaigns. In addition, managerial personnel may receive expense
reimbursements, marketing allowances and so called "overrides." In part for tax
reasons, AXA Advisors financial professionals and managerial personnel qualify
for health and retirement benefits based on their sales of our variable
products.
These payments and differential compensation (together, "payments") can vary in
amount based on the applicable product and/or entity or individual involved. As
with any incentive, such payments may cause the recipient to show preference in
recommending the purchase or sale of our products. However, under applicable
rules of the National Association of Securities Dealers, Inc., AXA Advisors
financial professionals may only recommend to you products that they reasonably
believe are suitable for you based on facts that you have disclosed as to your
other security holdings, financial situation and needs. In making any
recommendation, financial professionals may nonetheless face conflicts of
interest because of the differences in compensation from one product category
to another, and because of differences in compensation between products in the
same category. Although Equitable takes all of its costs into account in
establishing the level of fees and expenses in our products, payments made will
not result in any separate charge to you under your contract.
66 More information
9. Incorporation of certain documents by reference
- --------------------------------------------------------------------------------
Equitable Life's Annual Report on Form 10-K for the year ended December 31,
2003 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 67
Appendix I: Condensed financial information
- --------------------------------------------------------------------------------
The unit values and number of units outstanding shown below are for contracts
offered under Separate Account 49 with the same daily asset charges of 1.25%.
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, 2003
- --------------------------------------------------------------------------------
For the year ending December 31,
--------------------------------
2003
- --------------------------------------------------------------------------------
AXA Aggressive Allocation
- --------------------------------------------------------------------------------
Unit value $ 10.68
- --------------------------------------------------------------------------------
Number of units outstanding (000's) 186
- --------------------------------------------------------------------------------
AXA Conservative Allocation
- --------------------------------------------------------------------------------
Unit value $ 10.32
- --------------------------------------------------------------------------------
Number of units outstanding (000's) 153
- --------------------------------------------------------------------------------
AXA Conservative-Plus Allocation
- --------------------------------------------------------------------------------
Unit value $ 10.42
- --------------------------------------------------------------------------------
Number of units outstanding (000's) 78
- --------------------------------------------------------------------------------
AXA Moderate Allocation
- --------------------------------------------------------------------------------
Unit value $ 10.52
- --------------------------------------------------------------------------------
Number of units outstanding (000's) 1,082
- --------------------------------------------------------------------------------
AXA Moderate-Plus Allocation
- --------------------------------------------------------------------------------
Unit value $ 10.68
- --------------------------------------------------------------------------------
Number of units outstanding (000's) 815
- --------------------------------------------------------------------------------
AXA Premier VIP Aggressive Equity
- --------------------------------------------------------------------------------
Unit value $ 10.68
- --------------------------------------------------------------------------------
Number of units outstanding (000's) 14
- --------------------------------------------------------------------------------
AXA Premier VIP Core Bond
- --------------------------------------------------------------------------------
Unit value $ 10.18
- --------------------------------------------------------------------------------
Number of units outstanding (000's) 202
- --------------------------------------------------------------------------------
AXA Premier VIP Health Care
- --------------------------------------------------------------------------------
Unit value $ 10.60
- --------------------------------------------------------------------------------
Number of units outstanding (000's) 79
- --------------------------------------------------------------------------------
AXA Premier VIP High Yield
- --------------------------------------------------------------------------------
Unit value $ 10.60
- --------------------------------------------------------------------------------
Number of units outstanding (000's) 371
- --------------------------------------------------------------------------------
AXA Premier VIP International Equity
- --------------------------------------------------------------------------------
Unit value $ 11.25
- --------------------------------------------------------------------------------
Number of units outstanding (000's) 68
- --------------------------------------------------------------------------------
AXA Premier VIP Large Cap Core Equity
- --------------------------------------------------------------------------------
Unit value $ 10.59
- --------------------------------------------------------------------------------
Number of units outstanding (000's) 26
- --------------------------------------------------------------------------------
AXA Premier Large Cap Growth
- --------------------------------------------------------------------------------
Unit value $ 10.47
- --------------------------------------------------------------------------------
Number of units outstanding (000's) 113
- --------------------------------------------------------------------------------
AXA Premier VIP Large Cap Value
- --------------------------------------------------------------------------------
Unit value $ 11.08
- --------------------------------------------------------------------------------
Number of units outstanding (000's) 106
- --------------------------------------------------------------------------------
AXA Premier VIP Small/Mid Cap Growth
- --------------------------------------------------------------------------------
Unit value $ 10.54
- --------------------------------------------------------------------------------
Number of units outstanding (000's) 142
- --------------------------------------------------------------------------------
A-1 Appendix I: Condensed financial information
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, 2003 (CONTINUED)
- --------------------------------------------------------------------------------
For the year ending December 31,
--------------------------------
2003
- --------------------------------------------------------------------------------
AXA Premier VIP Small/Mid Cap Value
- --------------------------------------------------------------------------------
Unit value $ 11.01
- --------------------------------------------------------------------------------
Number of units outstanding (000's) 126
- --------------------------------------------------------------------------------
AXA Premier VIP Technology
- --------------------------------------------------------------------------------
Unit value $ 10.32
- --------------------------------------------------------------------------------
Number of units outstanding (000's) 57
- --------------------------------------------------------------------------------
EQ/Alliance Common Stock
- --------------------------------------------------------------------------------
Unit value $ 10.94
- --------------------------------------------------------------------------------
Number of units outstanding (000's) 307
- --------------------------------------------------------------------------------
EQ/Alliance Growth and Income
- --------------------------------------------------------------------------------
Unit value $ 10.93
- --------------------------------------------------------------------------------
Number of units outstanding (000's) 209
- --------------------------------------------------------------------------------
EQ/Alliance Intermediate Government Securities
- --------------------------------------------------------------------------------
Unit value $ 10.10
- --------------------------------------------------------------------------------
Number of units outstanding (000's) 119
- --------------------------------------------------------------------------------
EQ/Alliance International
- --------------------------------------------------------------------------------
Unit value $ 11.20
- --------------------------------------------------------------------------------
Number of units outstanding (000's) 93
- --------------------------------------------------------------------------------
EQ/Alliance Premier Growth
- --------------------------------------------------------------------------------
Unit value $ 10.36
- --------------------------------------------------------------------------------
Number of units outstanding (000's) 60
- --------------------------------------------------------------------------------
EQ/Alliance Quality Bond
- --------------------------------------------------------------------------------
Unit value $ 10.21
- --------------------------------------------------------------------------------
Number of units outstanding (000's) 84
- --------------------------------------------------------------------------------
EQ/Alliance Small Cap Growth
- --------------------------------------------------------------------------------
Unit value $ 10.77
- --------------------------------------------------------------------------------
Number of units outstanding (000's) 109
- --------------------------------------------------------------------------------
EQ/Bernstein Diversified Value
- --------------------------------------------------------------------------------
Unit value $ 10.95
- --------------------------------------------------------------------------------
Number of units outstanding (000's) 329
- --------------------------------------------------------------------------------
EQ/Calvert Socially Responsible
- --------------------------------------------------------------------------------
Unit value $ 10.50
- --------------------------------------------------------------------------------
Number of units outstanding (000's) 17
- --------------------------------------------------------------------------------
EQ/Capital Guardian International
- --------------------------------------------------------------------------------
Unit value $ 11.19
- --------------------------------------------------------------------------------
Number of units outstanding (000's) 150
- --------------------------------------------------------------------------------
EQ/Capital Guardian Research
- --------------------------------------------------------------------------------
Unit value $ 10.73
- --------------------------------------------------------------------------------
Number of units outstanding (000's) 154
- --------------------------------------------------------------------------------
EQ/Capital Guardian U. S. Equity
- --------------------------------------------------------------------------------
Unit value $ 10.80
- --------------------------------------------------------------------------------
Number of units outstanding (000's) 338
- --------------------------------------------------------------------------------
EQ/Emerging Markets Equity
- --------------------------------------------------------------------------------
Unit value $ 11.50
- --------------------------------------------------------------------------------
Number of units outstanding (000's) 64
- --------------------------------------------------------------------------------
EQ/Equity 500 Index
- --------------------------------------------------------------------------------
Unit value $ 10.77
- --------------------------------------------------------------------------------
Number of units outstanding (000's) 374
- --------------------------------------------------------------------------------
EQ/Evergreen Omega
- --------------------------------------------------------------------------------
Unit value $ 10.70
- --------------------------------------------------------------------------------
Number of units outstanding (000's) 85
- --------------------------------------------------------------------------------
Appendix I: Condensed financial information A-2
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, 2003 (CONTINUED)
- --------------------------------------------------------------------------------
For the year ending December 31,
--------------------------------
2003
- --------------------------------------------------------------------------------
EQ/FI Mid Cap
- --------------------------------------------------------------------------------
Unit value $ 11.35
- --------------------------------------------------------------------------------
Number of units outstanding (000's) 306
- --------------------------------------------------------------------------------
EQ/FI Small/Mid Cap Value
- --------------------------------------------------------------------------------
Unit value $ 11.06
- --------------------------------------------------------------------------------
Number of units outstanding (000's) 148
- --------------------------------------------------------------------------------
EQ/J.P. Morgan Core Bond
- --------------------------------------------------------------------------------
Unit value $ 10.21
- --------------------------------------------------------------------------------
Number of units outstanding (000's) 252
- --------------------------------------------------------------------------------
EQ/Janus Large Cap Growth
- --------------------------------------------------------------------------------
Unit value $ 10.48
- --------------------------------------------------------------------------------
Number of units outstanding (000's) 55
- --------------------------------------------------------------------------------
EQ/Lazard Small Cap Value
- --------------------------------------------------------------------------------
Unit value $ 10.95
- --------------------------------------------------------------------------------
Number of units outstanding (000's) 232
- --------------------------------------------------------------------------------
EQ/Marsico Focus
- --------------------------------------------------------------------------------
Unit value $ 10.59
- --------------------------------------------------------------------------------
Number of units outstanding (000's) 348
- --------------------------------------------------------------------------------
EQ/Mercury Basic Value Equity
- --------------------------------------------------------------------------------
Unit value $ 10.93
- --------------------------------------------------------------------------------
Number of units outstanding (000's) 189
- --------------------------------------------------------------------------------
EQ/Mercury International Value
- --------------------------------------------------------------------------------
Unit value $ 11.11
- --------------------------------------------------------------------------------
Number of units outstanding (000's) 73
- --------------------------------------------------------------------------------
EQ/MFS Emerging Growth Companies
- --------------------------------------------------------------------------------
Unit value $ 10.25
- --------------------------------------------------------------------------------
Number of units outstanding (000's) 22
- --------------------------------------------------------------------------------
EQ/MFS Investors Trust
- --------------------------------------------------------------------------------
Unit value $ 10.58
- --------------------------------------------------------------------------------
Number of units outstanding (000's) 51
- --------------------------------------------------------------------------------
EQ/Money Market
- --------------------------------------------------------------------------------
Unit value $ 9.98
- --------------------------------------------------------------------------------
Number of units outstanding (000's) 252
- --------------------------------------------------------------------------------
EQ/Putnam Growth & Income Value
- --------------------------------------------------------------------------------
Unit value $ 10.98
- --------------------------------------------------------------------------------
Number of units outstanding (000's) 63
- --------------------------------------------------------------------------------
EQ/Putnam Voyager
- --------------------------------------------------------------------------------
Unit value $ 10.42
- --------------------------------------------------------------------------------
Number of units outstanding (000's) 34
- --------------------------------------------------------------------------------
EQ/Small Company Index
- --------------------------------------------------------------------------------
Unit value $ 10.73
- --------------------------------------------------------------------------------
Number of units outstanding (000's) 121
- --------------------------------------------------------------------------------
EQ/Technology
- --------------------------------------------------------------------------------
Unit value $ 10.25
- --------------------------------------------------------------------------------
Number of units outstanding (000's) 26
- --------------------------------------------------------------------------------
Laudus Rosenberg VIT Value Long/Short Equity
- --------------------------------------------------------------------------------
Unit value $ 10.17
- --------------------------------------------------------------------------------
Number of units outstanding (000's) 19
- --------------------------------------------------------------------------------
U.S. Real Estate
- --------------------------------------------------------------------------------
Unit value $ 11.00
- --------------------------------------------------------------------------------
Number of units outstanding (000's) 37
- --------------------------------------------------------------------------------
A-3 Appendix I: Condensed financial information
Appendix II: Purchase considerations for QP contracts
- --------------------------------------------------------------------------------
Trustees who are considering the purchase of an Equitable Accumulator(R) QP
contract should discuss with their tax advisors whether this is an appropriate
investment vehicle for the employer's plan. Trustees should consider whether
the plan provisions permit the investment of plan assets in the QP contract,
the distribution of such an annuity, the purchase of the guaranteed minimum
income benefit, and the payment of death benefits in accordance with the
requirements of the federal income tax rules. The QP contract and this
prospectus should be reviewed in full, and the following factors, among others,
should be noted. Assuming continued plan qualification and operation, earnings
on qualified plan assets will accumulate value on a tax-deferred basis even if
the plan is not funded by the Equitable Accumulator(R) QP contract or another
annuity. Therefore, you should purchase an Equitable Accumulator(R) QP contract
to fund a plan for the contract's features and benefits other than tax
deferral, after considering the relative costs and benefits of annuity
contracts and other types of arrangements and funding vehicles. This QP
contract accepts transfer contributions only and not regular, ongoing payroll
contributions. For 401(k) plans under defined contribution plans, no employee
after-tax contributions are accepted.
We will not accept defined benefit plans. For defined contribution plans, we
will only accept transfers from another defined contribution plan or a change
of investment vehicles in the plan. Only one additional transfer contribution
may be made per contract year. If overfunding of a plan occurs or amounts
attributable to an excess contribution must be withdrawn, withdrawals from the
QP contract may be required. A withdrawal charge and/or market value adjustment
may apply.
Equitable Life will not perform or provide any plan recordkeeping services with
respect to the QP contracts. The plan's administrator will be solely
responsible for performing or providing for all such services. There is no loan
feature offered under the QP contracts, so if the plan provides for loans and a
participant/employee takes a loan from the plan, other plan assets must be used
as the source of the loan and any loan repayments must be credited to other
investment vehicles and/or accounts available under the plan.
Given that required minimum distributions must generally commence from the plan
for annuitants after age 70-1/2, trustees should consider that:
o the QP contract may not be an appropriate purchase for annuitants
approaching or over age 70-1/2;
o although certain provisions of the Temporary Regulations on required
minimum distributions which would have required that the actuarial value of
additional annuity contract benefits be added to the dollar amount credited
for purposes of calculating required minimum distributions have currently
been suspended, these or similar provisions may apply in future years, and
could increase the amounts required to be distributed from the contract;
and
o the Guaranteed minimum income benefit may not be an appropriate feature for
annuitants who are older than age 60-1/2 when the contract is issued.
Finally, because the method of purchasing the QP contract, including the large
initial contribution, and the features of the QP contract may appeal more to
plan participants/employees who are older and tend to be highly paid, and
because certain features of the QP contract are available only to plan
participants/employees who meet certain minimum and/or maximum age
requirements, plan trustees should discuss with their advisers whether the
purchase of the QP contract would cause the plan to engage in prohibited
discrimination in contributions, benefits or otherwise.
Appendix II: Purchase considerations for QP contracts B-1
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 was allocated
on February 13, 2004 to a fixed maturity option with a maturity date of
February 13, 2013 (nine years later) at a hypothetical rate to maturity of
7.00%, resulting in a maturity value of $183,914 on the maturity date. We
further assume that a withdrawal of $50,000 is made four years later on
February 13, 2009.
- ------------------------------------------------------------------------------------------------
Hypothetical assumed
rate to maturity on
February 13, 2009
-------------------------
5.00% 9.00%
- ------------------------------------------------------------------------------------------------
As of February 13, 2009 (before withdrawal)
- ------------------------------------------------------------------------------------------------
(1) Market adjusted amount $144,082 $ 119,503
- ------------------------------------------------------------------------------------------------
(2) Fixed maturity amount $131,104 $ 131,104
- ------------------------------------------------------------------------------------------------
(3) Market value adjustment:
(1) - (2) $ 12,978 $ (11,601)
- ------------------------------------------------------------------------------------------------
On February 13, 2009 (after withdrawal)
- ------------------------------------------------------------------------------------------------
(4) Portion of market value adjustment associated with withdrawal:
(3) x [$50,000/(1)] $ 4,504 $ (4,854)
- ------------------------------------------------------------------------------------------------
(5) Reduction in fixed maturity amount: [$50,000 - (4)] $ 45,496 $ 54,854
- ------------------------------------------------------------------------------------------------
(6) Fixed maturity amount: (2) - (5) $ 85,608 $ 76,250
- ------------------------------------------------------------------------------------------------
(7) Maturity value $120,091 $ 106,965
- ------------------------------------------------------------------------------------------------
(8) Market adjusted amount of (7) $ 94,082 $ 69,503
- ------------------------------------------------------------------------------------------------
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 portion of 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 portion of a
positive market value adjustment is realized. The market value adjustment is
computed differently if you withdraw amounts on a date other than the
anniversary of the establishment of the fixed maturity option.
C-1 Appendix III: Market value adjustment example
Appendix IV: Enhanced death benefit example
- --------------------------------------------------------------------------------
The death benefit under the contracts is equal to the account value or, if
greater, the enhanced death benefit, if elected.
The following illustrates the enhanced death benefit calculation. Assuming
$100,000 is allocated to the variable investment options (with no allocation to
the EQ/Alliance Intermediate Government Securities, EQ/Money Market, the
guaranteed interest option, the fixed maturity options or the Special 10 year
fixed maturity option), no additional contributions, no transfers, no
withdrawals and no loans under a Rollover TSA contract, the enhanced death
benefit for an annuitant age 45 would be calculated as follows:
- --------------------------------------------------------------------------------
End of
contract 6% Roll up to age 85 Annual Ratchet to age 85
year Account value enhanced death benefit enhanced death benefit
- --------------------------------------------------------------------------------
1 $105,000 $106,000 $105,000
- --------------------------------------------------------------------------------
2 $115,500 $112,360 $115,500
- --------------------------------------------------------------------------------
3 $129,360 $119,102 $129,360
- --------------------------------------------------------------------------------
4 $103,488 $126,248 $129,360
- --------------------------------------------------------------------------------
5 $113,837 $133,823 $129,360
- --------------------------------------------------------------------------------
6 $127,497 $141,852 $129,360
- --------------------------------------------------------------------------------
7 $127,497 $150,363 $129,360
- --------------------------------------------------------------------------------
The account values for contract years 1 through 7 are based on hypothetical
rates of return of 5.00%, 10.00%, 12.00%, (20.00)%, 10.00%, 12.00% and 0.00%.
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.
ANNUAL RATCHET TO AGE 85
(1) At the end of contract years 1 through 3, the enhanced death benefit is the
current account value.
(2) At the end of contract years 4 through 7, the enhanced death benefit is the
enhanced death benefit at the end of the prior year since it is equal to or
higher than the current account value.
GREATER OF 6% ROLL UP TO AGE 85 OR THE ANNUAL RATCHET TO AGE 85
The enhanced death benefit under this option for each year shown would be the
greater of the amounts shown under the 6% Roll up to age 85 or the Annual
Ratchet to age 85.*
* At the end of contract years 4 through 7, the death benefit will be the
enhanced death benefit. At the end of contract years 1, 2 and 3, the death
benefit will be the current account value.
Appendix IV: Enhanced death benefit example D-1
Appendix V: Hypothetical illustrations
- --------------------------------------------------------------------------------
ILLUSTRATION OF ACCOUNT VALUES, CASH VALUES AND CERTAIN GUARANTEED MINIMUM
BENEFITS
The following tables illustrate the changes in account value, cash value and
the values of the "greater of 6% Roll up to age 85 or the Annual Ratchet to age
85" guaranteed minimum death benefit, the Protection Plus benefit and the
Guaranteed minimum income benefit under certain hypothetical circumstances for
an Accumulator(R) contract. The table illustrates the operation of a contract
based on a male, issue age 60, who makes a single $100,000 contribution and
takes no withdrawals. The amounts shown are for the beginning of each contract
year and assume that all of the account value is invested in portfolios that
achieve investment returns at constant gross annual rates of 0% and 6% (i.e.,
before any investment management fees, 12b-1 fees or other expenses are
deducted from the underlying portfolio assets). After the deduction of the
arithmetic average of the investment management fees, 12b-1 fees and other
expenses of all of the underlying Portfolios (as described below), the
corresponding net annual rates of return would be (2.93)% and 3.07% for the
Accumulator(R) contract, at the 0% and 6% gross annual rates, respectively.
These net annual rates of return reflect the trust and separate account level
charges, but they do not reflect the charges we deduct from your account value
annually for the optional Guaranteed minimum death benefit, Protection Plus
benefit, and the Guaranteed minimum income benefit features, as well as the
annual administrative charge. If the net annual rates of return did reflect
these charges, the net annual rates of return shown would be lower; however,
the values shown in the following tables reflect all contract charges. The
values shown under "Lifetime annual guaranteed minimum income benefit" reflect
the lifetime income that would be guaranteed if the Guaranteed minimum income
benefit is selected at that contract anniversary. An "N/A" in these columns
indicates that the benefit is not exercisable in that year. A "0" under any of
the death benefit and/or "Lifetime annual guaranteed minimum income benefit"
columns indicates that the contract has terminated due to insufficient account
value and, consequently, the guaranteed benefit has no value.
With respect to fees and expenses deducted from assets of the underlying
portfolios, the amounts shown in all tables reflect (1) investment management
fees equivalent to an effective annual rate of 0.68%, and (2) an assumed
average asset charge for all other expenses of the underlying portfolios
equivalent to an effective annual rate of 0.85% and (3) 12b-1 fees equivalent
to an effective annual rate of 0.25%. These rates are the arithmetic average
for all portfolios that are available as investment options. In other words,
they are based on the hypothetical assumption that account values are allocated
equally among the variable investment options. The actual rates associated with
any contract will vary depending upon the actual allocation of policy values
among the investment options. These rates do not reflect expense limitation
arrangements in effect with respect to certain of the underlying portfolios as
described in the footnotes to the fee table for the underlying portfolios in
"Fee Table" earlier in this prospectus. With these arrangements, the charges
shown above would be lower. This would result in higher values than those shown
in the following tables.
Because your circumstances will no doubt differ from those in the illustrations
that follow, values under your contract will differ, in most cases
substantially. Upon request, we will furnish you with a personalized
illustration.
E-1 Appendix V: Hypothetical illustrations
Variable deferred annuity
Accumulator(R)
$100,000 Single contribution and no withdrawals
Male, issue age 60
Benefits:
Greater of 6% Roll up to age 85 or the Annual Ratchet to age 85 Guaranteed
minimum death benefit
Protection Plus
Guaranteed minimum income benefit
Greater of 6% Roll Lifetime Annual
up to age 85 or the Guaranteed Minimum Income Benefit
Annual Ratchet to ------------------------------------
age 85 Guaranteed Total Death Benefit
Minimum Death with Protection Guaranteed Hypothetical
Account Value Cash Value Benefit Plus Income Income
Contract ------------------- ------------------ ------------------- ------------------- ------------------ -----------------
Age Year 0% 6% 0% 6% 0% 6% 0% 6% 0% 6% 0% 6%
- ----- --------- --------- --------- -------- --------- --------- --------- --------- --------- --------- -------- --------- -------
60 1 100,000 100,000 93,000 93,000 100,000 100,000 100,000 100,000 N/A N/A N/A N/A
61 2 95,306 101,285 88,306 94,285 106,000 106,000 108,400 108,400 N/A N/A N/A N/A
62 3 90,690 102,523 84,690 96,523 112,360 112,360 117,304 117,304 N/A N/A N/A N/A
63 4 86,145 103,710 80,145 97,710 119,102 119,102 126,742 126,742 N/A N/A N/A N/A
64 5 81,665 104,838 76,665 99,838 126,248 126,248 136,747 136,747 N/A N/A N/A N/A
65 6 77,240 105,901 74,240 102,901 133,823 133,823 147,352 147,352 N/A N/A N/A N/A
66 7 72,865 106,892 71,865 105,892 141,852 141,852 158,593 158,593 N/A N/A N/A N/A
67 8 68,530 107,802 68,530 107,802 150,363 150,363 170,508 170,508 N/A N/A N/A N/A
68 9 64,229 108,623 64,229 108,623 159,385 159,385 183,139 183,139 N/A N/A N/A N/A
69 10 59,953 109,345 59,953 109,345 168,948 168,948 196,527 196,527 N/A N/A N/A N/A
74 15 38,580 111,122 38,580 111,122 226,090 226,090 276,527 276,527 14,266 14,266 14,266 14,266
79 20 16,514 108,659 16,514 108,659 302,560 302,560 383,584 383,584 20,393 20,393 20,393 20,393
84 25 0 99,859 0 99,859 0 404,893 0 493,179 0 34,821 0 34,821
89 30 0 96,929 0 96,929 0 429,187 0 517,472 N/A N/A N/A N/A
94 35 0 96,688 0 96,688 0 429,187 0 517,472 N/A N/A N/A N/A
95 36 0 96,636 0 96,636 0 429,187 0 517,472 N/A N/A N/A N/A
The hypothetical investment results are illustrative only and should not be
deemed a representation of past or future investment results. Actual investment
results may be more or less than those shown and will depend on a number of
factors, including investment allocations made by the owner. The account value,
cash value and guaranteed benefits for a contract would be different from the
ones shown if the actual gross rate of investment return averaged 0% or 6% over
a period of years, but also fluctuated above or below the average for
individual contract years. We can make no representation that these
hypothetical investment results can be achieved for any one year or continued
over any period of time. In fact, for any given period of time, the investment
results could be negative.
Appendix V: Hypothetical illustrations E-2
Appendix VI: Guaranteed principal benefit example
- --------------------------------------------------------------------------------
For purposes of these examples, we assume that there is an initial contribution
of $100,000, made to the contract on February 13, 2004. We also assume that no
additional contributions, no transfers among options and no withdrawals from
the contract are made. For GPB Option 1, the example also assumes that a 10
year fixed maturity option is chosen. The hypothetical gross rates of return
with respect to amounts allocated to the variable investment options are 0%, 6%
and 10%. The numbers below reflect the deduction of all applicable separate
account and contract charges and also reflect the charge for GPB Option 2.
Also, for any given performance of your variable investment options, GPB Option
1 produces higher account values than GPB Option 2 unless investment
performance has been significantly positive. The examples should not be
considered a representation of past or future expenses. Similarly, the annual
rates of return assumed in the example are not an estimate or guarantee of
future investment performance.
- -------------------------------------------------------------------------------------------------------------------
Assuming 100%
in the variable
Assuming Under GPB Under GPB investment
100% in the FMO Option 1 Option 2 options
- -------------------------------------------------------------------------------------------------------------------
Amount allocated to FMO on February 13, 2004 100,000 69,310 35,000 --
based upon a 3.73% rate to maturity
- -------------------------------------------------------------------------------------------------------------------
Initial account value allocated to the variable 0 30,690 65,000 100,000
investment options on February 13, 2004
- -------------------------------------------------------------------------------------------------------------------
Account value in the fixed maturity option on Feb- 144,269 100,000 50,494 0
ruary 13, 2014
- -------------------------------------------------------------------------------------------------------------------
Annuity account value (computed by adding 144,269 122,562 100,000* 73,515
together the value at the maturity date of the
applicable fixed maturity option plus the value of
amounts in the variable investment options on
February 13, 2014, assuming a 0% gross rate of
return)
- -------------------------------------------------------------------------------------------------------------------
Annuity account value (computed by adding 144,269 141,125 130,948** 134,001
together the value at the maturity date of the
applicable fixed maturity option plus the value of
amounts in the variable investment options on
February 13, 2014, assuming a 6% gross rate of
return)
- -------------------------------------------------------------------------------------------------------------------
Annuity account value (computed by adding 144,269 160,203 168,926** 196,164
together the value at the maturity date of the
applicable fixed maturity option plus the value of
amounts in the variable investment options on
February 13, 2014, assuming a 10% gross rate of
return)
- -------------------------------------------------------------------------------------------------------------------
* Since the annuity account value is less than the alternate benefit under
GPB Option 2, the annuity account value is adjusted upward to the
guaranteed amount or an increase of $5,919 in this example.
** Since the annuity account value is greater than the alternate benefit under
GPB Option 2, GPB Option 2 will not affect the annuity account value.
F-1 Appendix VI: Guaranteed principal benefit example
Appendix VII -- State contract availability and/or variations of certain
features and benefits
- --------------------------------------------------------------------------------
The following information is a summary of the states where the Equitable
Accumulator(R) contract or certain features and/or benefits are either NOT
available as of the date of this Prospectus OR have certain variations to the
contract's features and benefits as previously described in this Prospectus.
STATES WHERE CERTAIN ACCUMULATOR(R) FEATURES AND/OR BENEFITS ARE NOT AVAILABLE
OR HAS CERTAIN VARIATIONS TO FEATURES AND/OR BENEFITS:
- -----------------------------------------------------------------------------------------------------------------------------------
State Features and Benefits Availability or Variation
- -----------------------------------------------------------------------------------------------------------------------------------
MARYLAND Fixed maturity options Not Available
Guaranteed principal benefit option1 and Guaranteed Not Available
principal benefit option 2
- -----------------------------------------------------------------------------------------------------------------------------------
NEW YORK Greater of the 6% roll up or Annual Ratchet Guaran- Not Available (you have a choice of the standard death benefit
teed minimum death benefit or the Annual Ratchet to age 85 guaranteed minimum death
benefit), as described earlier in this Prospectus.
Protection Plus Not Available
Variable Immediate Annuity payout options -- Life Not Available
annuity contracts
See "Contract features and benefits" -- "Self directed No more than 25% of any contribution may be allocated to the
allocation" guaranteed interest option.
See "Termination of your contract" in "Determining If your account value in the variable investment options and the
your contract's value" fixed maturity options is insufficient to pay the annual
administrative, guaranteed minimum death benefit and/or the
guaranteed minimum income benefit charges, and you have no
account value in the guaranteed interest option, your contract
will terminate without value, and you will lose any applicable
benefits. See "Charges and expenses" earlier in this Prospectus.
See "Transferring your account value" in "Transferring The following information is added as the sixth and seventh bul-
your money among investment options" lets in this section:
o During the first contract year, transfers into the guaranteed
interest option are not permitted.
o After the first contract year, a transfer into the guaranteed
interest option will not be permitted if such transfer would
result in more than 25% of the annuity account value being
allocated to the guaranteed interest option, based on the
annuity account value as of the previous business day.
See "The amount applied to purchase an annuity For fixed annuity period certain payout options only, the amount
payout option" in "Accessing your money" applied to the annuity benefit is the greater of the cash value
or 95% of what the account value would be if no withdrawal
charge applied. The income provided, however, will never be less
than what would be provided by applying the account value to
the guaranteed annuity purchase factors.
See "Annuity maturity date" in "Accessing your The maturity date by which you must take a lump sum with-
money" drawal or select an annuity payout option is as follows:
- -----------------------------------------------------------------------------------------------------------------------------------
Appendix VII -- State contract availability and/or
variations of certain features and benefits G-1
- -----------------------------------------------------------------------------------------------------------------------------------
State Features and Benefits Availability or Variation
- -----------------------------------------------------------------------------------------------------------------------------------
NEW YORK, Maximum
CONTINUED Issue age Annuitization age
--------- -----------------
0-80 90
81 91
82 92
83 93
84 94
85 95
Please see this section earlier in this Prospectus for more
information.
See "Charges and expenses" With regard to the Annual administrative, Guaranteed minimum
death benefit, Guaranteed principal benefit option 2 and Guar-
anteed minimum income benefit charges, respectively, we will
deduct the related charge, as follows for each: we will deduct the
charge from your value in the variable investment options on a
pro rata basis. If these amounts are insufficient, we will deduct
all or a portion of the charge from the fixed maturity options
(other than the Special 10 year fixed maturity option) in the
order of the earliest maturity date(s) first. If such fixed
maturity option amounts are insufficient, we will deduct
all or a portion of the charge from the account for special dollar
cost averaging (not available if the Guaranteed principal benefit
option is elected). If such amounts are still insufficient, we will
deduct any remaining portion from the Special 10 year fixed maturity
option. If the contract is surrendered or annuitized or a death
benefit is paid, we will deduct a pro rata portion of the charge
for that year. A market value adjustment will apply to deductions
from the fixed maturity options (including the Special 10 year
fixed maturity option).
In New York, deductions from the fixed maturity options (includ-
ing the Special 10 year fixed maturity option) cannot cause the
credited net interest for the contract year to fall below 1.5%.
With regard to the Annual administrative, Guaranteed minimum
death benefit and Guaranteed minimum income benefit charges
only, if your account value in the variable investment options
and the fixed maturity options is insufficient to pay this
charge, and you have no account value in the guaranteed interest
option, your contract will terminate without value and you will lose
any applicable guaranteed benefits. Please see "Termination of your
contract" in "Determining your contract's value" earlier in this
Prospectus.
See "Withdrawal charge" in "Charges and expenses" Please note that you may incur a withdrawal charge if the annu-
itant 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.
Fixed maturity options -- withdrawal charges For contracts issued in New York, the withdrawal charge that
applies to withdrawals taken from amounts in the fixed maturity
options will never exceed 7% and will be determined by applying
the New York Alternate Scale I shown below. If you withdraw
amounts that have been transferred from one fixed maturity option
to another, we use the New York Alternate Scale II (also shown
below) if it produces a higher charge than Alternate Scale I.
- -----------------------------------------------------------------------------------------------------------------------------------
G-2 Appendix VII -- State contract availability and/or variations of certain
features and benefits
- -----------------------------------------------------------------------------------------------------------------------------------
State Features and Benefits Availability or Variation
- -----------------------------------------------------------------------------------------------------------------------------------
NEW YORK, Fixed maturity options -- withdrawal charges The New York withdrawal charge may not exceed the withdrawal
CONTINUED (continued) charge that would normally apply to the contract. If a contribu-
tion has been in the contract for more than 7 years and therefore
would have no withdrawal charge, no withdrawal charge will apply.
Use of a New York Alternate Scale can only result in a lower charge.
We will compare the result of applying Alternate Scale I or II, as the
case may be, to the result of applying the normal withdrawal charge, and
will charge the lower withdrawal charge.
------------------------------------------------------------------------
NY Alternate Scale I NY Alternate Scale II
Year of investment in fixed Year of transfer within fixed
maturity option* maturity option*
------------------------------------------------------------------------
Within year 1 7% 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
------------------------------------------------------------------------
7 1%
------------------------------------------------------------------------
After year 7 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
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.
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 with the shortest available maturity. If we
are not offering other fixed maturity options, we will transfer
your maturity value to the EQ/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 what 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.
- -----------------------------------------------------------------------------------------------------------------------------------
Appendix VII -- State contract availability and/or
variations of certain features and benefits G-3
- -----------------------------------------------------------------------------------------------------------------------------------
State Features and Benefits Availability or Variation
- -----------------------------------------------------------------------------------------------------------------------------------
PENNSYLVANIA Contribution age limitations The following contribution
limits apply:
Maximum
Issue age Contribution age
--------- -----------------
0-75 79
76 80
77 81
78-80 82
81-83 84
84 85
85 86
Special dollar cost averaging program In Pennsylvania, we refer to this program as "enhanced rate
dollar cost averaging."
Withdrawal charge schedule for issue ages 84 and 85 For annuitants that are ages 84 and 85 when the contract is
issued in Pennsylvania, the withdrawal charge will be computed
in the same manner as for other contracts as described in
"Charges and expenses" under "Withdrawal charge" earlier in
this Prospectus, except that the withdrawal charge schedule
will be different. For these contracts, the withdrawal charge
schedule will be 5% of each contribution made in the first
contract year, decreasing by 1% each subsequent contract year
to 0% in the sixth and later contract years.
See "Annuity maturity date" in "Accessing your The maturity date by which you must take a lump sum with-
money" drawal or select an annuity payout option is as follows:
Maximum
Issue age annuitization age
0-75 85
76 86
77 87
78-80 88
81-85 90
- -----------------------------------------------------------------------------------------------------------------------------------
PUERTO RICO IRA, Roth IRA, Inherited IRA and Rollover TSA Not Available
contracts
Beneficiary continuation option (IRA) Not Available
- -----------------------------------------------------------------------------------------------------------------------------------
VERMONT Loans under Rollover TSA contracts Taking a loan in excess of the Internal Revenue Code limits
may result in adverse tax consequences. Please consult your tax
adviser before taking a loan that exceeds the Internal Revenue
Code limits.
- -----------------------------------------------------------------------------------------------------------------------------------
G-4 Appendix VII -- State contract availability and/or variations of certain
features and benefits
Statement of additional information
- --------------------------------------------------------------------------------
TABLE OF CONTENTS
Page
Tax Information 2
Unit Values 15
Equitable Life's Pending Name Change
Custodian and Independent Auditors 15
Distribution of the Contracts 15
Financial Statements 16
How to Obtain an Equitable Accumulator(R) Statement of Additional Information
for Separate Account No. 49
Send this request form to:
Equitable Accumulator(R)
P.O. Box 1547
Secaucus, NJ 07096-1547
- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
Please send me an Equitable Accumulator(R) SAI for Separate Account No. 49
dated May 1, 2004.
- --------------------------------------------------------------------------------
Name:
- --------------------------------------------------------------------------------
Address:
- --------------------------------------------------------------------------------
City State Zip
(SAI 13AMLF(5/03))
X00678/Core '04 Series
Equitable Accumulator(R) Plus(SM)
A combination variable and fixed deferred annuity contract
PROSPECTUS DATED MAY 1, 2004
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. You should read the prospectuses for each Trust, which
contain important information about the portfolios.
- --------------------------------------------------------------------------------
WHAT IS THE EQUITABLE ACCUMULATOR(R) PLUS(SM)?
Equitable Accumulator(R) Plus(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 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,
the guaranteed interest option or fixed maturity options ("investment options").
This contract may not currently be available in all states. Certain features and
benefits described in this Prospectus may vary in your state; all features and
benefits may not be available in all contracts or all states. Please see
Appendix VII later in this Prospectus for more information on state availability
and/or variations of certain features and benefits.
- --------------------------------------------------------------------------------
Variable investment options
- --------------------------------------------------------------------------------
o AXA Aggressive Allocation(1) o EQ/Alliance Quality Bond
o AXA Conservative Allocation(1) o EQ/Alliance Small Cap Growth
o AXA Conservative-Plus Allocation(1) o EQ/Bernstein Diversified Value
o AXA Moderate Allocation(1) o EQ/Calvert Socially Responsible
o AXA Moderate-Plus Allocation(1) o EQ/Capital Guardian International
o AXA Premier VIP Aggressive Equity o EQ/Capital Guardian Research
o AXA Premier VIP Core Bond o EQ/Capital Guardian U.S. Equity
o AXA Premier VIP Health Care o EQ/Emerging Markets Equity
o AXA Premier VIP High Yield o EQ/Equity 500 Index
o AXA Premier VIP International Equity o EQ/Evergreen Omega
o AXA Premier VIP Large Cap Core o EQ/FI Mid Cap
Equity o EQ/FI Small/Mid Cap Value
o AXA Premier VIP Large Cap Growth o EQ/J.P. Morgan Core Bond
o AXA Premier VIP Large Cap Value o EQ/Janus Large Cap Growth
o AXA Premier VIP Small/Mid Cap o EQ/Lazard Small Cap Value
Growth o EQ/Marsico Focus
o AXA Premier VIP Small/Mid Cap Value o EQ/Mercury Basic Value Equity
o AXA Premier VIP Technology o EQ/Mercury International Value
o EQ/Alliance Common Stock o EQ/MFS Emerging Growth Companies
o EQ/Alliance Growth and Income o EQ/MFS Investors Trust
o EQ/Alliance Intermediate Government o EQ/Money Market
Securities o EQ/Putnam Growth & Income Value
o EQ/Alliance International o EQ/Putnam Voyager
o EQ/Alliance Premier Growth o EQ/Small Company Index
o EQ/Technology(2)
o Laudus Rosenberg VIT Value Long/
Short Equity(3)
o U.S. Real Estate -- Class II
- --------------------------------------------------------------------------------
(1) The "AXA Allocation" portfolios.
(2) Subject to shareholder approval, on or about May 14, 2004, we anticipate
that the EQ/Technology investment option (the "replaced option"), which
invests in a corresponding portfolio of EQ Advisors Trust, will be merged
into the AXA Premier VIP Technology investment option (the "surviving
option"), which invests in a corresponding portfolio of AXA Premier VIP
Trust. At that time, we will move the assets in the replaced option into
the surviving option and all allocation elections to the replaced option
will be considered allocations to the surviving option.
(3) Formerly named "AXA Rosenberg VIT Value Long/Short Equity."
You may allocate amounts to any of the variable investment options. Each
variable investment option is a subaccount of Separate Account No. 49. Each
variable investment option, in turn, invests in a corresponding securities
portfolio of EQ Advisors Trust, AXA Premier VIP Trust, The Universal
Institutional Funds, Inc. or Barr Rosenberg Variable Insurance 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 ("Rollover
IRA") or Roth IRA ("Roth Conversion IRA").
o An annuity that is an investment vehicle for a qualified defined
contribution plan ("QP").
o An Internal Revenue Code Section 403(b) Tax-Sheltered Annuity ("TSA") --
("Rollover TSA").
A contribution of at least $10,000 is required to purchase a contract. We add
an amount ("credit") to your contract with each contribution you make. Expenses
for this contract may be higher than for a comparable contract without a
credit. Over time, the amount of the credit may be more than offset by fees and
charges associated with the credit.
A registration statement relating to this offering has been filed with the
Securities and Exchange Commission ("SEC"). The statement of additional
information ("SAI") dated May 1, 2004, is part of the registration statement.
The SAI is available free of charge. You may request one by writing to our
processing office or calling 1-800-789-7771. 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.
X00681/Plus '04 Series
Contents of this Prospectus
- --------------------------------------------------------------------------------
EQUITABLE ACCUMULATOR(R) PLUS(SM)
- --------------------------------------------------------------------------------
Index of key words and phrases 4
Who is Equitable Life? 5
How to reach us 6
Equitable Accumulator(R) Plus(SM) at a glance -- key features 8
- --------------------------------------------------------------------------------
FEE TABLE 11
- --------------------------------------------------------------------------------
Example 14
- --------------------------------------------------------------------------------
1. CONTRACT FEATURES AND BENEFITS 18
- --------------------------------------------------------------------------------
How you can purchase and contribute to your contract 18
Owner and annuitant requirements 20
How you can make your contributions 20
What are your investment options under the contract? 20
Allocating your contributions 26
Credits 28
Your benefit base 29
Annuity purchase factors 30
Our Guaranteed minimum income benefit option 30
Guaranteed minimum death benefit 31
Your right to cancel within a certain number of days 32
- --------------------------------------------------------------------------------
2. DETERMINING YOUR CONTRACT'S VALUE 34
- --------------------------------------------------------------------------------
Your account value and cash value 34
Your contract's value in the variable investment options 34
Your contract's value in the guaranteed interest option 34
Your contract's value in the fixed maturity options 34
Termination of your contract 34
- --------------------------------------------------------------------------------
3. TRANSFERRING YOUR MONEY AMONG THE INVESTMENT OPTIONS 35
- --------------------------------------------------------------------------------
Transferring your account value 35
Disruptive transfer activity 35
Rebalancing your account value 36
- ----------------------
"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
- --------------------------------------------------------------------------------
4. ACCESSING YOUR MONEY 37
- --------------------------------------------------------------------------------
Withdrawing your account value 37
How withdrawals are taken from your account value 38
How withdrawals (and transfers out of the Special 10 year fixed
maturity option) affect your Guaranteed minimum income
benefit, Guaranteed minimum death benefit and
Guaranteed principal benefit option 2 38
Loans under Rollover TSA contracts 39
Surrendering your contract to receive its cash value 39
When to expect payments 39
Your annuity payout options 40
- --------------------------------------------------------------------------------
5. CHARGES AND EXPENSES 42
- --------------------------------------------------------------------------------
Charges that Equitable Life deducts 42
Charges that the Trusts deduct 44
Group or sponsored arrangements 45
Other distribution arrangements 45
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6. PAYMENT OF DEATH BENEFIT 46
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Your beneficiary and payment of benefit 46
How death benefit payment is made 46
Beneficiary continuation option 48
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7. TAX INFORMATION 50
- --------------------------------------------------------------------------------
Overview 50
Buying a contract to fund a retirement arrangement 50
Transfers among variable investment options 50
Taxation of nonqualified annuities 50
Individual retirement arrangements (IRAs) 52
Special rules for contracts funding qualified plans 54
Tax-Sheltered Annuity contracts (TSAs) 54
Federal and state income tax withholding and information
reporting 55
Impact of taxes to Equitable Life 56
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8. MORE INFORMATION 57
- --------------------------------------------------------------------------------
About Separate Account No. 49 57
About the Trusts 57
About our fixed maturity options 57
About the general account 58
About other methods of payment 58
Dates and prices at which contract events occur 59
About your voting rights 59
About legal proceedings 60
About our independent auditors 60
Financial statements 60
Transfers of ownership, collateral assignments, loans
and borrowing 60
Distribution of the contracts 60
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9. INCORPORATION OF CERTAIN DOCUMENTS BY REFERENCE 62
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APPENDICES
- --------------------------------------------------------------------------------
I -- Condensed financial information A-1
II -- Purchase considerations for QP contracts B-1
III -- Market value adjustment example C-1
IV -- Enhanced death benefit example D-1
V -- Hypothetical illustrations E-1
VI -- Guaranteed principal benefit example F-1
VII -- State contract availability and/or variations
of certain features and benefits G-1
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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 34
administrative charge 42
annual administrative charge 42
annual ratchet death benefit 32
annuitant 18
annuity maturity date 41
annuity payout options 40
annuity purchase factors 30
automatic investment program 59
beneficiary 46
Beneficiary continuation option ("BCO") 48
benefit base 29
business day 59
cash value 34
charges for state premium and other applicable taxes 44
contract date 9
contract date anniversary 9
contract year 9
contributions to traditional IRAs 53
regular contributions 53
rollovers and transfers 53
credit 28
disability, terminal illness or confinement to nursing home 43
disruptive transfer activity 35
distribution charge 42
EQAccess 6
ERISA 39
Fixed-dollar option 27
fixed maturity options 25
free look 33
free withdrawal amount 43
general account 58
General dollar cost averaging 27
guaranteed interest option 25
Guaranteed minimum death benefit 31
Guaranteed minimum income benefit 30
Guaranteed minimum income benefit charge 44
Guaranteed principal benefits 26
IRA cover
IRS 50
Investment simplifier 27
Page
lifetime required minimum distribution withdrawals 38
loan reserve account 39
loans under Rollover TSA 39
lump sum withdrawals 37
market adjusted amount 25
market value adjustment 25
market timing 35
maturity dates 25
maturity value 25
Mortality and expense risks charge 42
NQ cover
participant 20
portfolio cover
processing office 6
Protection Plus 32
Protection Plus charge 44
QP cover
rate to maturity 25
Rebalancing 36
roll-up death benefit 29
Rollover IRA cover
Rollover TSA cover
Roth Conversion IRA cover
Roth IRA 52
SAI cover
SEC cover
self-directed allocation 26
Separate Account 49 57
Standard death benefit 29
substantially equal withdrawals 37
Successor owner and annuitant 46
Spousal protection 47
systematic withdrawals 37
TOPS 6
TSA cover
traditional IRA 52
Trusts cover
unit 34
variable investment options 20
wire transmittals and electronic applications 58
withdrawal charge 43
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 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 or supplemental materials.
- ------------------------------------------------------------------------------------------
Prospectus Contract or Supplemental Materials
- ------------------------------------------------------------------------------------------
fixed maturity options Guarantee Periods (Guaranteed Fixed Interest Accounts
in supplemental materials)
variable investment options Investment Funds
account value Annuity Account Value
rate to maturity Guaranteed Rates
unit Accumulation Unit
Guaranteed minimum death benefit Guaranteed death benefit
Guarantee minimum income benefit Guaranteed Income Benefit
guaranteed interest option Guaranteed Interest Account
- ------------------------------------------------------------------------------------------
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 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
$508.31 billion in assets as of December 31, 2003. 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.
Effective on or about September 7, 2004, we expect, subject to regulatory
approval, to change the name of "The Equitable Life Assurance Society of the
United States" to "AXA Equitable Life Insurance Company." When the name change
becomes effective, all references in any current prospectus, prospectus
supplement or statement of additional information to "The Equitable Life
Assurance Society of the United States" will become references to "AXA Equitable
Life Insurance Company." Accordingly, all references to "Equitable" will become
references to "AXA Equitable."
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 CONTRIBUTIONS SENT BY REGULAR MAIL:
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Equitable Accumulator(R) Plus(SM)
P.O. Box 13014
Newark, NJ 07188-0014
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FOR CONTRIBUTIONS SENT BY EXPRESS DELIVERY:
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Equitable Accumulator(R) Plus(SM)
c/o Bank One, N.A.
300 Harmon Meadow Boulevard, 3rd Floor
Attn: Box 13014
Secaucus, NJ 07094
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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 Accumulator(R) Plus(SM)
P.O. Box 1547
Secaucus, NJ 07096-1547
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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 Accumulator(R) Plus(SM)
200 Plaza Drive, 4th Floor
Secaucus, NJ 07094
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REPORTS WE PROVIDE:
- --------------------------------------------------------------------------------
o written confirmation of financial transactions;
o statement of your contract values at the close of each calendar year and
any calendar quarter in which there was a financial transaction; and
o annual statement of your contract values as of the close of the contract
year, including notification of eligibility to exercise the guaranteed
minimum income benefit, if applicable.
- --------------------------------------------------------------------------------
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;
o change your 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 1-888-909-7770. If you are a client with AXA
Advisors you may use EQAccess by visiting our web site at
http://www.axaonline.com and clicking on EQAccess. All other clients may access
EQAccess by visiting our other web site at http://www.equitable.com. 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 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
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).
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CUSTOMER SERVICE REPRESENTATIVE:
- --------------------------------------------------------------------------------
You may also use our toll-free number (1-800-789-7771) to speak with one of our
customer service representatives. Our customer service representatives are
available on any business day from 8:30 a.m. until 5:30 p.m., Eastern Time.
WE REQUIRE THAT THE FOLLOWING TYPES OF COMMUNICATIONS BE ON SPECIFIC FORMS WE
PROVIDE FOR THAT PURPOSE:
(1) authorization for telephone transfers by your financial professional
(available only for contracts distributed through AXA Distributors);
(2) conversion of a traditional IRA to a Roth Conversion IRA
contract;
6 Who is Equitable Life?
(3) election of the automatic investment program;
(4) election of the rebalancing program;
(5) requests for loans under Rollover TSA contracts;
(6) spousal consent for loans under Rollover TSA contracts;
(7) requests for withdrawals or surrenders from Rollover TSA
contracts;
(8) tax withholding elections;
(9) election of the beneficiary continuation option;
(10) IRA contribution recharacterizations;
(11) certain section 1035 exchanges;
(12) direct transfers; and
(13) exercise of the Guaranteed minimum income benefit.
WE ALSO HAVE SPECIFIC FORMS THAT WE RECOMMEND YOU USE FOR THE FOLLOWING TYPES
OF REQUESTS:
(1) address changes;
(2) beneficiary changes;
(3) transfers between variable investment options;
(4) contract surrender and withdrawal requests;
(5) death claims; and
(6) general dollar cost averaging (including the fixed dollar and interest
sweep options)
TO CANCEL OR CHANGE ANY OF THE FOLLOWING WE REQUIRE WRITTEN NOTIFICATION
GENERALLY AT LEAST SEVEN CALENDAR DAYS BEFORE THE NEXT SCHEDULED TRANSACTION:
(1) automatic investment program;
(2) dollar cost averaging (including the fixed dollar amount and interest sweep
options);
(3) rebalancing;
(4) substantially equal withdrawals;
(5) systematic withdrawals; and
(6) 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
Equitable Accumulator(R) Plus(SM) at a glance -- key features
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Professional investment Equitable Accumulator(R) Plus(SM) variable investment options invest in different portfolios managed by
management professional investment advisers.
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Fixed maturity options o Fixed maturity options ("FMOs") with maturities ranging from approximately 1 to 10 years (subject to
availability).
o Each fixed maturity option offers a guarantee of principal and interest rate if you hold it to
maturity.
o Special 10 year fixed maturity option (available under Guaranteed principal benefit option 2 only).
----------------------------------------------------------------------------------------------------------
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. If you withdraw or transfer only a portion
of a fixed maturity amount, 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 also applies.
- ------------------------------------------------------------------------------------------------------------------------------------
Guaranteed interest o Principal and interest guarantees.
option o Interest rates set periodically.
- ------------------------------------------------------------------------------------------------------------------------------------
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 variable investment options.
contract
----------------------------------------------------------------------------------------------------------
If you are purchasing an annuity contract as an Individual Retirement Annuity (IRA) or Tax Sheltered
Annuity (TSA), or to fund an employer retirement plan (QP or Qualified Plan), 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 compared 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 and in the SAI.)
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Guaranteed minimum The Guaranteed minimum income benefit provides income protection for you during the annuitant's life once
income benefit the owner elects to annuitize the contract.
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Contribution amounts o Initial minimum: $10,000
o Additional minimum: $500 (NQ, QP and Rollover TSA contracts)
$100 monthly and $300 quarterly under our automatic investment program
(NQ contracts)
$50 (IRA contracts)
----------------------------------------------------------------------------------------------------------
Maximum contribution limitations may apply. In general, contributions are limited to $1.5 million.
- ------------------------------------------------------------------------------------------------------------------------------------
Credit We allocate your contributions to your account value. We allocate a credit to your account value at
the same time that we allocate your contributions. The amount of credit may be up to 5% of each
contribution, depending on certain factors. The credit is subject to recovery by us in certain limited
circumstances.
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Access to your money o Lump sum withdrawals
o Several withdrawal options on a periodic basis
o Loans under Rollover TSA contracts
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 tax penalty.
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Payout options o Fixed annuity payout options
o Variable Immediate Annuity payout options
o Income Manager(R) payout options
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8 Equitable Accumulator(R) Plus(SM) at a glance -- key features
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Additional features o Guaranteed minimum death benefit options
o Guaranteed principal benefit options
o Dollar cost averaging
o Automatic investment program
o Account value rebalancing (quarterly, semiannually, and annually)
o Free transfers
o Waiver of withdrawal charge for disability, terminal illness, confinement to a nursing home and certain
other withdrawals.
o Protection Plus, an optional death benefit available under certain contracts
o Spousal protection
o Successor owner/annuitant
o Beneficiary continuation option
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Fees and charges
o Daily charges on amounts invested in the variable investment options for mortality and expense risks,
administrative, and distribution charges at an annual rate of 1.50%.
o The charges for the Guaranteed minimum death benefits range from 0.0% to 0.60%, annually, of the applicable
benefit base. The benefit base is described under "Your benefit base" in "Contract features and benefits"
later in this Prospectus.
o Annual 0.35% Protection Plus charge for this optional death benefit.
o Annual 0.65% of the applicable benefit base charge for the optional Guaranteed minimum income benefit,
until you exercise the benefit, elect another annuity payout or the contract date anniversary after the
annuitant reaches age 85, whichever occurs first.
o An annual charge for the optional Guaranteed principal benefit option 2 deducted on the first 10 contract
date anniversaries equal to 0.50% of account value.
o If your account value at the end of the contract year is less than $50,000, we deduct an annual
administrative charge equal to $30, or during the first two contract years, 2% of your account value, if
less. If your account value, on the contract date anniversary, is $50,000 or more, we will not deduct the
charge.
o No sales charge deducted at the time you make contributions.
o During the first eight contract years following a contribution, a charge will be deducted from amounts that
you withdraw that exceed 10% of your account value. We use the account value at the beginning of each
contract year to calculate the 10% amount available. The charge is 8% in each of the first two contract
years following a contribution; the charge is 7% in the third and fourth contract years following a
contribution; thereafter, it declines by 1% each year in the fifth to eighth contract year following a
contribution. There is no withdrawal charge in the ninth and later contract years following a contribution.
Certain other exemptions may apply.
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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." For example, if your contract date is May 1, your contract date
anniversary is April 30.
-------------------------------------------------------------------------------------------------------------
o We deduct a charge designed to approximate certain taxes that may be imposed on us, such as premium taxes
in your state. This 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 the Variable Immediate Annuity payout
options.
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 0.10% to 1.50% annually,
12b-1 fees of either 0.25% or 0.35% annually and other expenses.
- ------------------------------------------------------------------------------------------------------------------------------------
Annuitant issue ages NQ: 0-80
Rollover IRA, Roth Conversion
IRA and Rollover TSA: 20-80
QP: 20-70
- ------------------------------------------------------------------------------------------------------------------------------------
Equitable Accumulator(R) Plus(SM) at a glance -- key features 9
The above is not a complete description of all material provisions of the
contract. In some cases, restrictions or exceptions apply. Also, all features
of the contract are not necessarily available in your state or at certain ages.
Please see Appendix VII later in this Prospectus for more information on state
availability and/or variations of certain features and benefits.
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, credits, fees and/or charges that are
different from those in the contracts 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 Equitable Accumulator(R) Plus(SM) at a glance -- key features
Fee table
- --------------------------------------------------------------------------------
The following tables describe the fees and expenses that you will pay when
buying, owning, and surrendering the contract. Each of the charges and expenses
is more fully described in "Charges and expenses" later in this Prospectus.
The first table describes fees and expenses that you will pay at the time you
surrender the contract or if you make certain withdrawals or apply your cash
value to certain payout options or if you purchase a Variable Immediate
Annuity. Charges designed to approximate certain taxes that may be imposed on
us, such as premium taxes in your state, may also apply. Charges for certain
features shown in the fee table are mutually exclusive.
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Charges we deduct from your account value at the time you request certain ransactions
- ------------------------------------------------------------------------------------------------------------------------------------
Maximum withdrawal charge as a percentage of contributions with-
drawn(1) (deducted if you surrender your contract, make certain
withdrawals, or apply your cash value to certain payout options). 8.00%
Charge if you elect a Variable Immediate Annuity payout option $ 350
- ------------------------------------------------------------------------------------------------------------------------------------
The next table describes the fees and expenses that you will pay periodically
during the time that you own the contract, not including the underlying trust
portfolio fees and expenses.
- ------------------------------------------------------------------------------------------------------------------------------------
Charges we deduct from your variable investment options expressed as an annual percentage of daily net assets
- ------------------------------------------------------------------------------------------------------------------------------------
Mortality and expense risks 0.90%(2)
Administrative 0.35%
Distribution 0.25%
-------
Total annual expenses 1.50%
- ------------------------------------------------------------------------------------------------------------------------------------
Charges we deduct from your account value on each contract date anniversary
- ------------------------------------------------------------------------------------------------------------------------------------
Maximum annual administrative charge(4)
If your account value on a contract date anniversary is less than
$50,000(3) $ 30
If your account value on a contract date anniversary is $50,000
or more $ 0
- ------------------------------------------------------------------------------------------------------------------------------------
Charges we deduct from your account value each year if you elect the optional benefit
- ------------------------------------------------------------------------------------------------------------------------------------
Guaranteed minimum death benefit charge (calculated as a
percentage of the applicable benefit base. Deducted annually(4) on each
contract date anniversary for which the benefit is in effect.)
Standard death benefit 0.00%
Annual Ratchet to age 85 0.25% of the Annual Ratchet to age 85 benefit base
Greater of 6% Roll up to age 85 or Annual Ratchet to age 85 0.60% of the greater of 6% Roll up to age 85
benefit base or the Annual Ratchet to age 85 benefit
base, as applicable
- ------------------------------------------------------------------------------------------------------------------------------------
Guaranteed principal benefit charge for option 2 (calculated as
a percentage of the account value. Deducted annually(4) on the first 10
contract date anniversaries.) 0.50%
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Guaranteed minimum income benefit charge (calculated as a
percentage of the applicable benefit base. Deducted annually(4) on each
contract date anniversary for which the benefit is in effect.) 0.65%
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Protection Plus benefit charge (calculated as a percentage of the
account value. Deducted annually(4) on each contract date anniversary
for which the benefit is in effect.) 0.35%
- ------------------------------------------------------------------------------------------------------------------------------------
Net loan interest charge -- Rollover TSA contracts only (calcu-
lated and deducted daily as a percentage of the outstanding loan
amount) 2.00%(5)
- ------------------------------------------------------------------------------------------------------------------------------------
Fee table 11
You also bear your proportionate share of all fees and expenses paid by a
"Portfolio" that corresponds to any variable investment option you are using.
This table shows the lowest and highest total operating expenses charged by any
of the Portfolios that you will pay periodically during the time that you own
the contract. These fees and expenses are reflected in the Portfolio's net
asset value each day. Therefore, they reduce the investment return of the
Portfolio and the related variable investment option. Actual fees and expenses
are likely to fluctuate from year to year. More detail concerning each
Portfolio's fees and expenses is contained in the Trust prospectus for the
Portfolio.
- ------------------------------------------------------------------------------------------------------------------------------------
Portfolio operating expenses expressed as an annual percentage of daily net assets
- ------------------------------------------------------------------------------------------------------------------------------------
Total Annual Portfolio Operating Expenses for 2003 (expenses that are deducted Lowest Highest
from Portfolio assets including management fees, 12b-1 fees, service fees, and/or
other expenses)(6) 0.56% 10.23%
This table shows the fees and expenses for 2003 as an annual percentage of each
Portfolio's daily average net assets.
- ------------------------------------------------------------------------------------------------------------------------------------
Total Net Total
Annual Fee Waiv- Annual
Underlying Expenses ers and/or Expenses
Manage- Portfolio (Before Expense After
ment 12b-1 Other Fees and Expense Reimburse- Expense
Portfolio Name Fees(7) Fees(8) Expenses(9) Expenses(10) Limitation) ments(11) Limitations
- ------------------------------------------------------------------------------------------------------------------------------------
AXA PREMIER VIP TRUST:
- ------------------------------------------------------------------------------------------------------------------------------------
AXA Aggressive Allocation 0.10% 0.25% 5.91% 1.08% 7.34% (5.98)% 1.36%
AXA Conservative Allocation 0.10% 0.25% 9.04% 0.84% 10.23% (9.13)% 1.10%
AXA Conservative-Plus Allocation 0.10% 0.25% 4.13% 0.88% 5.36% (4.21)% 1.15%
AXA Moderate Allocation 0.10% 0.25% 0.39% 0.86% 1.60% (0.43)% 1.17%
AXA Moderate-Plus Allocation 0.10% 0.25% 1.77% 1.13% 3.25% (1.87)% 1.38%
AXA Premier VIP Aggressive Equity 0.62% 0.25% 0.15% -- 1.02% -- 1.02%
AXA Premier VIP Core Bond 0.60% 0.25% 0.26% -- 1.11% (0.16)% 0.95%
AXA Premier VIP Health Care 1.20% 0.25% 0.48% -- 1.93% (0.08)% 1.85%
AXA Premier VIP High Yield 0.59% 0.25% 0.16% -- 1.00% -- 1.00%
AXA Premier VIP International Equity 1.05% 0.25% 0.73% -- 2.03% (0.23)% 1.80%
AXA Premier VIP Large Cap Core Equity 0.90% 0.25% 0.52% -- 1.67% (0.32)% 1.35%
AXA Premier VIP Large Cap Growth 0.90% 0.25% 0.43% -- 1.58% (0.23)% 1.35%
AXA Premier VIP Large Cap Value 0.90% 0.25% 0.43% -- 1.58% (0.23)% 1.35%
AXA Premier VIP Small/Mid Cap Growth 1.10% 0.25% 0.35% -- 1.70% (0.10)% 1.60%
AXA Premier VIP Small/Mid Cap Value 1.10% 0.25% 0.31% -- 1.66% (0.06)% 1.60%
AXA Premier VIP Technology 1.20% 0.25% 0.83% -- 2.28% (0.43)% 1.85%
- ------------------------------------------------------------------------------------------------------------------------------------
EQ ADVISORS TRUST:
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/Alliance Common Stock 0.48% 0.25% 0.06% -- 0.79% -- 0.79%
EQ/Alliance Growth and Income 0.57% 0.25% 0.06% -- 0.88% -- 0.88%
EQ/Alliance Intermediate Government Securities 0.49% 0.25% 0.08% -- 0.82% -- 0.82%
EQ/Alliance International 0.74% 0.25% 0.13% -- 1.12% (0.02)% 1.10%
EQ/Alliance Premier Growth 0.90% 0.25% 0.05% -- 1.20% (0.04)% 1.16%
EQ/Alliance Quality Bond 0.52% 0.25% 0.06% -- 0.83% -- 0.83%
EQ/Alliance Small Cap Growth 0.75% 0.25% 0.07% -- 1.07% -- 1.07%
EQ/Bernstein Diversified Value 0.64% 0.25% 0.06% -- 0.95% 0.00% 0.95%
EQ/Calvert Socially Responsible 0.65% 0.25% 0.55% -- 1.45% (0.40)% 1.05%
EQ/Capital Guardian International 0.85% 0.25% 0.21% -- 1.31% (0.11)% 1.20%
EQ/Capital Guardian Research 0.65% 0.25% 0.07% -- 0.97% (0.02)% 0.95%
EQ/Capital Guardian U.S. Equity 0.65% 0.25% 0.07% -- 0.97% (0.02)% 0.95%
EQ/Emerging Markets Equity 1.15% 0.25% 0.40% -- 1.80% 0.00% 1.80%
EQ/Equity 500 Index 0.25% 0.25% 0.06% -- 0.56% -- 0.56%
EQ/Evergreen Omega 0.65% 0.25% 0.25% -- 1.15% (0.20)% 0.95%
EQ/FI Mid Cap 0.70% 0.25% 0.08% -- 1.03% (0.03)% 1.00%
EQ/FI Small/Mid Cap Value 0.75% 0.25% 0.10% -- 1.10% 0.00% 1.10%
EQ/Janus Large Cap Growth 0.90% 0.25% 0.09% -- 1.24% (0.09)% 1.15%
EQ/J.P. Morgan Core Bond 0.44% 0.25% 0.08% -- 0.77% 0.00% 0.77%
EQ/Lazard Small Cap Value 0.75% 0.25% 0.10% -- 1.10% 0.00% 1.10%
EQ/Marsico Focus 0.90% 0.25% 0.07% -- 1.22% (0.07)% 1.15%
EQ/Mercury Basic Value Equity 0.60% 0.25% 0.07% -- 0.92% 0.00% 0.92%
EQ/Mercury International Value 0.85% 0.25% 0.16% -- 1.26% (0.01)% 1.25%
EQ/MFS Emerging Growth Companies 0.65% 0.25% 0.07% -- 0.97% -- 0.97%
EQ/MFS Investors Trust 0.60% 0.25% 0.11% -- 0.96% (0.01)% 0.95%
EQ/Money Market 0.33% 0.25% 0.06% -- 0.64% -- 0.64%
- ------------------------------------------------------------------------------------------------------------------------------------
12 Fee table
- ------------------------------------------------------------------------------------------------------------------------------------
Total Net Total
Annual Fee Waiv- Annual
Underlying Expenses ers and/or Expenses
Manage- Portfolio (Before Expense After
ment 12b-1 Other Fees and Expense Reimburse- Expense
Portfolio Name Fees(7) Fees(8) Expenses(9) Expenses(10) Limitation) ments(11) Limitations
- ------------------------------------------------------------------------------------------------------------------------------------
EQ ADVISORS TRUST:
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/Putnam Growth & Income Value 0.60% 0.25% 0.10% -- 0.95% 0.00% 0.95%
EQ/Putnam Voyager 0.65% 0.25% 0.13% -- 1.03% (0.08)% 0.95%
EQ/Small Company Index 0.25% 0.25% 0.35% -- 0.85% 0.00% 0.85%
EQ/Technology 0.90% 0.25% 0.09% -- 1.24% (0.09)% 1.15%
- ------------------------------------------------------------------------------------------------------------------------------------
BARR ROSENBERG VARIABLE INSURANCE TRUST:
- ------------------------------------------------------------------------------------------------------------------------------------
Laudus Rosenberg VIT Value Long/Short Equity 1.50% 0.25% 5.80% -- 7.55% (4.57)% 2.98%
- ------------------------------------------------------------------------------------------------------------------------------------
THE UNIVERSAL INSTITUTIONAL FUNDS, INC.:
- ------------------------------------------------------------------------------------------------------------------------------------
U.S. Real Estate -- Class II 0.80% 0.35% 0.31% -- 1.46% (0.11)% 1.35%
- ------------------------------------------------------------------------------------------------------------------------------------
(1) Deducted upon a withdrawal of amounts in excess of the 10% free withdrawal
amount, if applicable.
The withdrawal charge percentage we use is determined by the contract year in which you Contract
make the withdrawal or surrender your contract. For each contribution, we consider the Year
contract year in which we receive that contribution to be "contract year 1") 1..................................8.00%
2..................................8.00%
3..................................7.00%
4..................................7.00%
5..................................6.00%
6..................................5.00%
7..................................4.00%
8..................................3.00%
9+.................................0.00%
(2) These charges compensate us for certain risks we assume and expenses we
incur under the contract. They also compensate us for the expense
associated with the credit. We expect to make a profit from these charges.
(3) During the first two contract years this charge, if it applies, is equal to
the lesser of $30 or 2% of your account value. Thereafter, the charge is
$30 for each contract year.
(4) If the contract is surrendered or annuitized or a death benefit is paid on
any date other than the contract date anniversary, we will deduct a pro
rata portion of the charge for that year.
(5) We charge interest on loans under Rollover TSA contracts but also credit
you interest on your loan reserve account. Our net loan interest charge is
determined by the excess between the interest rate we charge over the
interest rate we credit. See "Loans under Rollover TSA contracts" later in
this Prospectus for more information on how the loan interest is calculated
and for restrictions that may apply.
(6) "Total Annual Portfolio Operating Expenses" are based, in part, on
estimated amounts for options added during the fiscal year 2003 and for the
underlying portfolios.
(7) The management fees for each Portfolio cannot be increased without a vote
of that Portfolio's shareholders. See footnote (11) for any expense
limitation agreement information.
(8) 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.
(9) Other expenses shown are those incurred in 2003. The amounts shown as
"Other Expenses" will fluctuate from year to year depending on actual
expenses. See footnote (11) for any expense limitation agreement
information.
(10) The AXA Allocation variable investment options invest in corresponding
portfolios of the AXA Premier VIP Trust. Each AXA Allocation portfolio in
turn invests in shares of other portfolios of the EQ Advisors Trust and AXA
Premier VIP Trust ("the underlying portfolios"). Amounts shown reflect each
AXA Allocation portfolio's pro rata share of the fees and expenses of the
various underlying portfolios in which it invests. The fees and expenses
have been estimated based on the respective weighted investment allocations
as of 12/31/03. A "--" indicates that the listed portfolio does not invest
in underlying portfolios, i.e., it is not an allocation portfolio.
(11) The amounts shown reflect any fee waivers and/or expense reimbursements
that applied to each Portfolio. A "-" indicates that there is no expense
limitation in effect. "0.0%" indicates that the expense limitation
arrangement did not result in a fee waiver reimbursement. Equitable Life,
the investment manager of AXA Premier VIP Trust and EQ Advisors Trust, has
entered into Expense Limitation Agreements with respect to certain
Portfolios, which are effective through April 30, 2005. Under these
agreements Equitable Life has agreed to waive or limit its fees and assume
other expenses of certain Portfolios, if necessary, in an amount that
limits each affected Portfolio's total Annual Expenses (exclusive of
interest, taxes, brokerage commissions, capitalized expenditures and
extraordinary expenses) to not more than specified amounts. 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. Morgan Stanley
Investment Management Inc., which does business in certain instances as
"Van Kampen," is the manager of The Universal Institutional Funds, Inc. --
U.S. Real Estate Portfolio -- Class II and has voluntarily agreed to reduce
its management fee and/or reimburse the Portfolio so that total annual
operating expenses of the Portfolio (exclusive of investment related
expenses, such as foreign country tax expense and interest expense on
amounts borrowed) are not more than specified amounts. Van Kampen reserves
the right to terminate any waiver and/or reimbursement at any time without
notice. Charles Schwab Investment Management, Inc., the manager of the Barr
Rosenberg Variable Insurance Trust -- Laudus Rosenberg VIT Value Long/Short
Equity Portfolio, has voluntarily agreed to reimburse expenses in excess of
specified amounts. See the Prospectus for each applicable underlying Trust
for more information about the arrangements. In addition, a portion of the
brokerage commissions of certain portfolios of EQ Advisors Trust Portfolio
and AXA Premier VIP Trust Portfolio is used to reduce the applicable
Portfolio's expenses. If the above table reflected both the expense
limitation arrangements plus the portion of the brokerage commissions used
to reduce portfolio expenses, the net expenses would be as shown in the
table below:
- ------------------------------------------------
Portfolio Name
- ------------------------------------------------
AXA Aggressive Allocation 0.95%
AXA Conservative Allocation 0.73%
AXA Conservative-Plus Allocation 0.78%
AXA Moderate Allocation 0.79%
AXA Moderate-Plus Allocation 0.99%
- ------------------------------------------------
Fee table
13
- ------------------------------------------------
Portfolio Name
- ------------------------------------------------
AXA Premier VIP Aggressive Equity 0.95%
AXA Premier VIP Health Care 1.84%
AXA Premier VIP International Equity 1.73%
AXA Premier VIP Large Cap Core Equity 1.32%
AXA Premier VIP Large Cap Growth 1.32%
AXA Premier VIP Large Cap Value 1.28%
AXA Premier VIP Small/Mid Cap Growth 1.46%
AXA Premier VIP Small/Mid Cap Value 1.52%
AXA Premier VIP Technology 1.70%
EQ/Alliance Common Stock 0.77%
EQ/Alliance Growth and Income 0.85%
EQ/Alliance Premier Growth 1.15%
EQ/Alliance Small Cap Growth 1.03%
EQ/Calvert Socially Responsible 1.00%
EQ/Capital Guardian International 1.18%
EQ/Capital Guardian Research 0.93%
EQ/Capital Guardian U.S. Equity 0.93%
EQ/Emerging Markets Equity 1.78%
EQ/Evergreen Omega 0.84%
EQ/FI Mid Cap 0.88%
EQ/FI Small/Mid Cap Value 1.04%
EQ/Lazard Small Cap Value 1.00%
EQ/Marsico Focus 1.10%
EQ/Mercury Basic Value Equity 0.91%
EQ/Mercury International Value 1.18%
EQ/MFS Emerging Growth Companies 0.96%
EQ/MFS Investors Trust 0.94%
EQ/Putnam Growth & Income Value 0.93%
EQ/Putnam Voyager 0.93%
EQ/Technology 1.01%
- ------------------------------------------------
EXAMPLE
This example is intended to help you compare the cost of investing in the
contract with the cost of investing in other variable annuity contracts. These
costs include contract owner transaction expenses, contract fees, separate
account annual expenses, and underlying trust fees and expenses (including the
underlying portfolio fees and expenses).
The example below shows the expenses that a hypothetical contract owner (who
has elected the Guaranteed minimum income benefit with the enhanced death
benefit that provides for the greater of the 6% Roll up to age 85 or the Annual
Ratchet to age 85 and Protection Plus) would pay in the situations illustrated.
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 $1.60 per $10,000.
The fixed maturity options and guaranteed interest option are not covered by
the examples. However, the annual administrative charge, the withdrawal charge,
the charge for any optional benefits and the charge if you elect a Variable
Immediate Annuity payout option do apply to the fixed maturity options and
guaranteed interest option. 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.
The example assumes that you invest $10,000 in the contract for the time
periods indicated. The example also assumes that your investment has a 5%
return each year. This example 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 example
is not an estimate or guarantee of future investment performance.
Although your actual cost may be higher or lower, based on these assumptions,
your cost would be:
14 Fee table
- ----------------------------------------------------------------------------------------------------------
If you surrender your contract at the end of the
applicable time period
- ----------------------------------------------------------------------------------------------------------
1 year 3 years 5 years 10 years
- ----------------------------------------------------------------------------------------------------------
AXA PREMIER VIP TRUST:
- ----------------------------------------------------------------------------------------------------------
AXA Aggressive Allocation $ 1,938.01 $ 3,961.13 $ 5,796.47 $ 9,326.64
AXA Conservative Allocation $ 2,253.10 $ 4,736.29 $ 6,842.80 $ 10,461.71
AXA Conservative-Plus Allocation $ 1,721.56 $ 3,397.79 $ 4,989.19 $ 8,279.35
AXA Moderate Allocation $ 1,311.33 $ 2,258.97 $ 3,241.25 $ 5,509.89
AXA Moderate-Plus Allocation $ 1,491.38 $ 2,770.44 $ 4,045.17 $ 6,868.22
AXA Premier VIP Aggressive Equity $ 1,247.66 $ 2,073.57 $ 2,942.34 $ 4,968.32
AXA Premier VIP Core Bond $ 1,257.43 $ 2,102.26 $ 2,988.89 $ 5,054.00
AXA Premier VIP Health Care $ 1,346.96 $ 2,361.65 $ 3,405.07 $ 5,798.30
AXA Premier VIP High Yield $ 1,245.51 $ 2,067.20 $ 2,931.98 $ 4,949.18
AXA Premier VIP International Equity $ 1,357.88 $ 2,392.97 $ 3,454.79 $ 5,884.68
AXA Premier VIP Large Cap Core Equity $ 1,318.57 $ 2,279.90 $ 3,274.74 $ 5,569.34
AXA Premier VIP Large Cap Growth $ 1,308.74 $ 2,251.50 $ 3,229.28 $ 5,488.58
AXA Premier VIP Large Cap Value $ 1,308.74 $ 2,251.50 $ 3,229.28 $ 5,488.58
AXA Premier VIP Small/Mid Cap Growth $ 1,321.85 $ 2,289.36 $ 3,289.86 $ 5,596.09
AXA Premier VIP Small/Mid Cap Value $ 1,317.48 $ 2,276.75 $ 3,269.70 $ 5,560.40
AXA Premier VIP Technology $ 1,385.17 $ 2,470.97 $ 3,578.14 $ 6,096.56
- ----------------------------------------------------------------------------------------------------------
EQ ADVISORS TRUST:
- ----------------------------------------------------------------------------------------------------------
EQ/Alliance Common Stock $ 1,222.86 $ 2,000.14 $ 2,822.68 $ 4,745.73
EQ/Alliance Growth and Income $ 1,232.57 $ 2,028.92 $ 2,869.65 $ 4,833.48
EQ/Alliance Intermediate Government Securities $ 1,226.10 $ 2,009.74 $ 2,838.36 $ 4,775.07
EQ/Alliance International $ 1,258.52 $ 2,105.45 $ 2,994.06 $ 5,063.48
EQ/Alliance Premier Growth $ 1,267.25 $ 2,130.96 $ 3,035.31 $ 5,138.91
EQ/Alliance Quality Bond $ 1,227.18 $ 2,012.94 $ 2,843.58 $ 4,784.83
EQ/Alliance Small Cap Growth $ 1,253.06 $ 2,089.49 $ 2,968.20 $ 5,016.00
EQ/Bernstein Diversified Value $ 1,240.12 $ 2,051.26 $ 2,906.05 $ 4,901.15
EQ/Calvert Socially Responsible $ 1,294.55 $ 2,210.37 $ 3,163.29 $ 5,370.55
EQ/Capital Guardian International $ 1,279.26 $ 2,165.95 $ 3,091.79 $ 5,241.59
EQ/Capital Guardian Research $ 1,242.27 $ 2,057.64 $ 2,916.43 $ 4,920.39
EQ/Capital Guardian U.S. Equity $ 1,242.27 $ 2,057.64 $ 2,916.43 $ 4,920.39
EQ/Emerging Markets Equity $ 1,332.76 $ 2,320.83 $ 3,340.09 $ 5,684.62
EQ/Equity 500 Index $ 1,198.07 $ 1,926.36 $ 2,701.81 $ 4,517.68
EQ/Evergreen Omega $ 1,261.79 $ 2,115.02 $ 3,009.54 $ 5,091.84
EQ/FI Mid Cap $ 1,248.74 $ 2,076.75 $ 2,947.52 $ 4,977.88
EQ/FI Small/Mid Cap Value $ 1,256.34 $ 2,099.07 $ 2,983.72 $ 5,044.52
EQ/J.P. Morgan Core Bond $ 1,220.71 $ 1,993.74 $ 2,812.22 $ 4,726.12
EQ/Janus Large Cap Growth $ 1,271.62 $ 2,143.69 $ 3,055.88 $ 5,176.39
EQ/Lazard Small Cap Value $ 1,256.34 $ 2,099.07 $ 2,983.72 $ 5,044.52
EQ/Marsico Focus $ 1,269.44 $ 2,137.33 $ 3,045.60 $ 5,157.67
EQ/Mercury Basic Value Equity $ 1,236.88 $ 2,041.69 $ 2,890.46 $ 4,872.21
EQ/Mercury International Value $ 1,273.80 $ 2,150.05 $ 3,066.15 $ 5,195.07
EQ/MFS Emerging Growth Companies $ 1,242.27 $ 2,057.64 $ 2,916.43 $ 4,920.39
EQ/MFS Investors Trust $ 1,241.19 $ 2,054.45 $ 2,911.24 $ 4,910.77
- ----------------------------------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------------------
If you annuitize at the end of the applicable time
period
- ----------------------------------------------------------------------------------------------------------
1 year 3 years 5 years 10 years
- ----------------------------------------------------------------------------------------------------------
AXA PREMIER VIP TRUST:
- ----------------------------------------------------------------------------------------------------------
AXA Aggressive Allocation $ 1,488.01 $ 3,611.13 $ 5,546.47 $ 9,676.64
AXA Conservative Allocation $ 1,803.10 $ 4,386.29 $ 6,592.80 $ 10,811.71
AXA Conservative-Plus Allocation $ 1,271.56 $ 3,047.79 $ 4,739.19 $ 8,629.35
AXA Moderate Allocation $ 861.33 $ 1,908.97 $ 2,991.25 $ 5,859.89
AXA Moderate-Plus Allocation $ 1,041.38 $ 2,420.44 $ 3,795.17 $ 7,218.22
AXA Premier VIP Aggressive Equity $ 797.66 $ 1,723.57 $ 2,692.34 $ 5,318.32
AXA Premier VIP Core Bond $ 807.43 $ 1,752.26 $ 2,738.89 $ 5,404.00
AXA Premier VIP Health Care $ 896.96 $ 2,011.65 $ 3,155.07 $ 6,148.30
AXA Premier VIP High Yield $ 795.51 $ 1,717.20 $ 2,681.98 $ 5,299.18
AXA Premier VIP International Equity $ 907.88 $ 2,042.97 $ 3,204.79 $ 6,234.68
AXA Premier VIP Large Cap Core Equity $ 868.57 $ 1,929.90 $ 3,024.74 $ 5,919.34
AXA Premier VIP Large Cap Growth $ 858.74 $ 1,901.50 $ 2,979.28 $ 5,838.58
AXA Premier VIP Large Cap Value $ 858.74 $ 1,901.50 $ 2,979.28 $ 5,838.58
AXA Premier VIP Small/Mid Cap Growth $ 871.85 $ 1,939.36 $ 3,039.86 $ 5,946.09
AXA Premier VIP Small/Mid Cap Value $ 867.48 $ 1,926.75 $ 3,019.70 $ 5,910.40
AXA Premier VIP Technology $ 935.17 $ 2,120.97 $ 3,328.14 $ 6,446.56
- ----------------------------------------------------------------------------------------------------------
EQ ADVISORS TRUST:
- ----------------------------------------------------------------------------------------------------------
EQ/Alliance Common Stock $ 772.86 $ 1,650.14 $ 2,572.68 $ 5,095.73
EQ/Alliance Growth and Income $ 782.57 $ 1,678.92 $ 2,619.65 $ 5,183.48
EQ/Alliance Intermediate Government Securities $ 776.10 $ 1,659.74 $ 2,588.36 $ 5,125.07
EQ/Alliance International $ 808.52 $ 1,755.45 $ 2,744.06 $ 5,413.48
EQ/Alliance Premier Growth $ 817.25 $ 1,780.96 $ 2,785.31 $ 5,488.91
EQ/Alliance Quality Bond $ 777.18 $ 1,662.94 $ 2,593.58 $ 5,134.83
EQ/Alliance Small Cap Growth $ 803.06 $ 1,739.49 $ 2,718.20 $ 5,366.00
EQ/Bernstein Diversified Value $ 790.12 $ 1,701.26 $ 2,656.05 $ 5,251.15
EQ/Calvert Socially Responsible $ 844.55 $ 1,860.37 $ 2,913.29 $ 5,720.55
EQ/Capital Guardian International $ 829.26 $ 1,815.95 $ 2,841.79 $ 5,591.59
EQ/Capital Guardian Research $ 792.27 $ 1,707.64 $ 2,666.43 $ 5,270.39
EQ/Capital Guardian U.S. Equity $ 792.27 $ 1,707.64 $ 2,666.43 $ 5,270.39
EQ/Emerging Markets Equity $ 882.76 $ 1,970.83 $ 3,090.09 $ 6,034.62
EQ/Equity 500 Index $ 748.07 $ 1,576.36 $ 2,451.81 $ 4,867.68
EQ/Evergreen Omega $ 811.79 $ 1,765.02 $ 2,759.54 $ 5,441.84
EQ/FI Mid Cap $ 798.74 $ 1,726.75 $ 2,697.52 $ 5,327.88
EQ/FI Small/Mid Cap Value $ 806.34 $ 1,749.07 $ 2,733.72 $ 5,394.52
EQ/J.P. Morgan Core Bond $ 770.71 $ 1,643.74 $ 2,562.22 $ 5,076.12
EQ/Janus Large Cap Growth $ 821.62 $ 1,793.69 $ 2,805.88 $ 5,526.39
EQ/Lazard Small Cap Value $ 806.34 $ 1,749.07 $ 2,733.72 $ 5,394.52
EQ/Marsico Focus $ 819.44 $ 1,787.33 $ 2,795.60 $ 5,507.67
EQ/Mercury Basic Value Equity $ 786.88 $ 1,691.69 $ 2,640.46 $ 5,222.21
EQ/Mercury International Value $ 823.80 $ 1,800.05 $ 2,816.15 $ 5,545.07
EQ/MFS Emerging Growth Companies $ 792.27 $ 1,707.64 $ 2,666.43 $ 5,270.39
EQ/MFS Investors Trust $ 791.19 $ 1,704.45 $ 2,661.24 $ 5,260.77
- ----------------------------------------------------------------------------------------------------------
If you do not surrender your contract at the end of
the applicable time period
- ----------------------------------------------------------------------------------------------------------
1 year 3 years 5 years 10 years
- ----------------------------------------------------------------------------------------------------------
AXA PREMIER VIP TRUST:
- ----------------------------------------------------------------------------------------------------------
AXA Aggressive Allocation $ 1,138.01 $ 3,261.13 $ 5,196.47 $ 9,326.64
AXA Conservative Allocation $ 1,453.10 $ 4,036.29 $ 6,242.80 $ 10,461.71
AXA Conservative-Plus Allocation $ 921.56 $ 2,697.79 $ 4,389.19 $ 8,279.35
AXA Moderate Allocation $ 511.33 $ 1,558.97 $ 2,641.25 $ 5,509.89
AXA Moderate-Plus Allocation $ 691.38 $ 2,070.44 $ 3,445.17 $ 6,868.22
AXA Premier VIP Aggressive Equity $ 447.66 $ 1,373.57 $ 2,342.34 $ 4,968.32
AXA Premier VIP Core Bond $ 457.43 $ 1,402.26 $ 2,388.89 $ 5,054.00
AXA Premier VIP Health Care $ 546.96 $ 1,661.65 $ 2,805.07 $ 5,798.30
AXA Premier VIP High Yield $ 445.51 $ 1,367.20 $ 2,331.98 $ 4,949.18
AXA Premier VIP International Equity $ 557.88 $ 1,692.97 $ 2,854.79 $ 5,884.68
AXA Premier VIP Large Cap Core Equity $ 518.57 $ 1,579.90 $ 2,674.74 $ 5,569.34
AXA Premier VIP Large Cap Growth $ 508.74 $ 1,551.50 $ 2,629.28 $ 5,488.58
AXA Premier VIP Large Cap Value $ 508.74 $ 1,551.50 $ 2,629.28 $ 5,488.58
AXA Premier VIP Small/Mid Cap Growth $ 521.85 $ 1,589.36 $ 2,689.86 $ 5,596.09
AXA Premier VIP Small/Mid Cap Value $ 517.48 $ 1,576.75 $ 2,669.70 $ 5,560.40
AXA Premier VIP Technology $ 585.17 $ 1,770.97 $ 2,978.14 $ 6,096.56
- ----------------------------------------------------------------------------------------------------------
EQ ADVISORS TRUST:
- ----------------------------------------------------------------------------------------------------------
EQ/Alliance Common Stock $ 422.86 $ 1,300.14 $ 2,222.68 $ 4,745.73
EQ/Alliance Growth and Income $ 432.57 $ 1,328.92 $ 2,269.65 $ 4,833.48
EQ/Alliance Intermediate Government Securities $ 426.10 $ 1,309.74 $ 2,238.36 $ 4,775.07
EQ/Alliance International $ 458.52 $ 1,405.45 $ 2,394.06 $ 5,063.48
EQ/Alliance Premier Growth $ 467.25 $ 1,430.96 $ 2,435.31 $ 5,138.91
EQ/Alliance Quality Bond $ 427.18 $ 1,312.94 $ 2,243.58 $ 4,784.83
EQ/Alliance Small Cap Growth $ 453.06 $ 1,389.49 $ 2,368.20 $ 5,016.00
EQ/Bernstein Diversified Value $ 440.12 $ 1,351.26 $ 2,306.05 $ 4,901.15
EQ/Calvert Socially Responsible $ 494.55 $ 1,510.37 $ 2,563.29 $ 5,370.55
EQ/Capital Guardian International $ 479.26 $ 1,465.95 $ 2,491.79 $ 5,241.59
EQ/Capital Guardian Research $ 442.27 $ 1,357.64 $ 2,316.43 $ 4,920.39
EQ/Capital Guardian U.S. Equity $ 442.27 $ 1,357.64 $ 2,316.43 $ 4,920.39
EQ/Emerging Markets Equity $ 532.76 $ 1,620.83 $ 2,740.09 $ 5,684.62
EQ/Equity 500 Index $ 398.07 $ 1,226.36 $ 2,101.81 $ 4,517.68
EQ/Evergreen Omega $ 461.79 $ 1,415.02 $ 2,409.54 $ 5,091.84
EQ/FI Mid Cap $ 448.74 $ 1,376.75 $ 2,347.52 $ 4,977.88
EQ/FI Small/Mid Cap Value $ 456.34 $ 1,399.07 $ 2,383.72 $ 5,044.52
EQ/J.P. Morgan Core Bond $ 420.71 $ 1,293.74 $ 2,212.22 $ 4,726.12
EQ/Janus Large Cap Growth $ 471.62 $ 1,443.69 $ 2,455.88 $ 5,176.39
EQ/Lazard Small Cap Value $ 456.34 $ 1,399.07 $ 2,383.72 $ 5,044.52
EQ/Marsico Focus $ 469.44 $ 1,437.33 $ 2,445.60 $ 5,157.67
EQ/Mercury Basic Value Equity $ 436.88 $ 1,341.69 $ 2,290.46 $ 4,872.21
EQ/Mercury International Value $ 473.80 $ 1,450.05 $ 2,466.15 $ 5,195.07
EQ/MFS Emerging Growth Companies $ 442.27 $ 1,357.64 $ 2,316.43 $ 4,920.39
EQ/MFS Investors Trust $ 441.19 $ 1,354.45 $ 2,311.24 $ 4,910.77
- ----------------------------------------------------------------------------------------------------------
Fee table
15
- ----------------------------------------------------------------------------------------------------------
If you surrender your contract at the end of the
applicable time period
- ----------------------------------------------------------------------------------------------------------
1 year 3 years 5 years 10 years
- ----------------------------------------------------------------------------------------------------------
EQ ADVISORS TRUST:
- ----------------------------------------------------------------------------------------------------------
EQ/Money Market $ 1,206.69 $ 1,952.06 $ 2,743.99 $ 4,597.63
EQ/Putnam Growth & Income Value $ 1,240.12 $ 2,051.26 $ 2,906.05 $ 4,901.15
EQ/Putnam Voyager $ 1,248.74 $ 2,076.75 $ 2,947.52 $ 4,977.88
EQ/Small Company Index $ 1,229.33 $ 2,019.33 $ 2,854.01 $ 4,804.32
EQ/Technology $ 1,271.62 $ 2,143.69 $ 3,055.88 $ 5,176.39
- ----------------------------------------------------------------------------------------------------------
BARR ROSENBERG VARIABLE INSURANCE TRUST:
- ----------------------------------------------------------------------------------------------------------
Laudus Rosenberg VIT Value Long/Short Equity $ 1,960.56 $ 4,018.36 $ 5,876.30 $ 9,422.13
- ----------------------------------------------------------------------------------------------------------
THE UNIVERSAL INSTITUTIONAL FUNDS, INC.:
- ----------------------------------------------------------------------------------------------------------
U.S. Real Estate -- Class II $ 1,295.64 $ 2,213.54 $ 3,168.37 $ 5,379.69
- ----------------------------------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------------------
If you annuitize at the end of the applicable time
period
- ----------------------------------------------------------------------------------------------------------
1 year 3 years 5 years 10 years
- ----------------------------------------------------------------------------------------------------------
EQ ADVISORS TRUST:
- ----------------------------------------------------------------------------------------------------------
EQ/Money Market $ 756.69 $ 1,602.06 $ 2,493.99 $ 4,947.63
EQ/Putnam Growth & Income Value $ 790.12 $ 1,701.26 $ 2,656.05 $ 5,251.15
EQ/Putnam Voyager $ 798.74 $ 1,726.75 $ 2,697.52 $ 5,327.88
EQ/Small Company Index $ 779.33 $ 1,669.33 $ 2,604.01 $ 5,154.32
EQ/Technology $ 821.62 $ 1,793.69 $ 2,805.88 $ 5,526.39
- ----------------------------------------------------------------------------------------------------------
BARR ROSENBERG VARIABLE INSURANCE TRUST:
- ----------------------------------------------------------------------------------------------------------
Laudus Rosenberg VIT Value Long/Short Equity $ 1,510.56 $ 3,668.36 $ 5,626.30 $ 9,772.13
- ----------------------------------------------------------------------------------------------------------
THE UNIVERSAL INSTITUTIONAL FUNDS, INC.:
- ----------------------------------------------------------------------------------------------------------
U.S. Real Estate -- Class II $ 845.64 $ 1,863.54 $ 2,918.37 $ 5,729.69
- ----------------------------------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------------------
If you do not surrender your contract at the end of
the applicable time period
- ----------------------------------------------------------------------------------------------------------
1 year 3 years 5 years 10 years
- ----------------------------------------------------------------------------------------------------------
EQ ADVISORS TRUST:
- ----------------------------------------------------------------------------------------------------------
EQ/Money Market $ 406.69 $ 1,252.06 $ 2,143.99 $ 4,597.63
EQ/Putnam Growth & Income Value $ 440.12 $ 1,351.26 $ 2,306.05 $ 4,901.15
EQ/Putnam Voyager $ 448.74 $ 1,376.75 $ 2,347.52 $ 4,977.88
EQ/Small Company Index $ 429.33 $ 1,319.33 $ 2,254.01 $ 4,804.32
EQ/Technology $ 471.62 $ 1,443.69 $ 2,455.88 $ 5,176.39
- ----------------------------------------------------------------------------------------------------------
BARR ROSENBERG VARIABLE INSURANCE TRUST:
- ----------------------------------------------------------------------------------------------------------
Laudus Rosenberg VIT Value Long/Short Equity $ 1,160.56 $ 3,318.36 $ 5,276.30 $ 9,422.13
- ----------------------------------------------------------------------------------------------------------
THE UNIVERSAL INSTITUTIONAL FUNDS, INC.:
- ----------------------------------------------------------------------------------------------------------
U.S. Real Estate -- Class II $ 495.64 $ 1,513.54 $ 2,568.37 $ 5,379.69
- ----------------------------------------------------------------------------------------------------------
16 Fee table
CONDENSED FINANCIAL INFORMATION
Please see Appendix I at the end of this Prospectus for the unit values and the
number of units outstanding as the end of the periods shown for each of the
variable investment options available as of December 31, 2003.
Fee table 17
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 initial contribution of $10,000 for you
to purchase a contract. You may make additional contributions of at least $500
each for NQ, QP and Rollover TSA contracts and $50 each for IRA contracts,
subject to limitations noted below. 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.
We may refuse to accept any contribution if the sum of all contributions under
all Equitable Accumulator(R) series contracts with the same owner or annuitant
would then total more than $1,500,000. We reserve the right to limit aggregate
contributions made after the first contract year to 150% of first-year
contributions. We may also refuse to accept any contribution if the sum of all
contributions under all Equitable Life annuity accumulation contracts with the
same owner or annuitant would then total more than $2,500,000. We may accept
less than the minimum initial contribution under a contract if an aggregate
amount of contracts purchased at the same time by an individual (including
spouse) meets the minimum.
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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 Limitations on
Contract type issue ages Source of contributions contributions+
- ------------------------------------------------------------------------------------------------------------------------------------
NQ 0 through 80 o After-tax money. o No additional contributions after attainment
of age 81 or, if later, the first contract
o Paid to us by check or transfer of contract anniversary.*
value in a tax-deferred exchange under
Section 1035 of the Internal Revenue
Code.
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Rollover IRA 20 through 80 o Eligible rollover distributions from TSA o No contributions after attainment of age 81
contracts or other 403(b) arrangements, or, if later, the first contract anniversary.*
qualified plans, and governmental
employer 457(b) plans. o Contributions after age 70-1/2 must be net of
required minimum distributions.
o Rollovers from another traditional indi-
vidual retirement arrangement. o Although we accept regular IRA contribu-
tions (limited to $3,000 for 2004 and
o Direct custodian-to-custodian transfers $4,000 for 2005) under Rollover IRA con-
from another traditional individual retire- tracts, we intend that this contract be used
ment arrangement. primarily for rollover and direct transfer
contributions.
o Regular IRA contributions.
o Additional catch-up contributions of up to
o Additional "catch-up" contributions. $500 can be made for the calendar year
2004 or 2005 where the owner is at least
age 50 but under age 70-1/2 at any time dur-
ing the calendar year for which the
contribution is made.
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18 Contract features and benefits
- ------------------------------------------------------------------------------------------------------------------------------------
Available
for annuitant Limitations on
Contract type issue ages Source of contributions contributions+
- ------------------------------------------------------------------------------------------------------------------------------------
Roth Conversion IRA 20 through 80 o Rollovers from another Roth IRA. o No additional rollover or direct transfer con-
tributions after attainment of age 81 or, if
o Conversion rollovers from a traditional IRA. later, the first contract anniversary.*
o Direct transfers from another Roth IRA. o Conversion rollovers after age 70-1/2 must be
o Regular Roth IRA contributions. net of required minimum distributions for the
traditional IRA you are rolling over.
o Additional catch-up contributions.
o You cannot roll over funds from a traditional
IRA if your adjusted gross income is
$100,000 or more.
o Although we accept regular Roth IRA contri-
butions (limited to $3,000 for 2004 and
$4,000 for 2005) under the Roth IRA con-
tracts, we intend that this contract be used
primarily for rollover and direct transfer
contributions.
o Additional catch-up contributions of up to
$500 can be made for the calendar year
2004 or 2005 where the owner is at least
age 50 at any time during the calendar year
for which the contribution is made.
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Rollover TSA 20 through 80 o Direct transfers of pre-tax funds from o Additional rollover or direct transfer contri-
another contract or arrangement under butions may be made up to attainment of
Section 403(b) of the Internal Revenue age 81 or, if later, the first contract
Code, complying with IRS Revenue Ruling anniversary.*
90-24.
o Rollover or direct transfer contributions
o Eligible rollover distributions of pre-tax after age 70-1/2 must be net of any required
funds from other 403(b) plans. Subsequent minimum distributions.
contributions may also be rollovers from
qualified plans, governmental employer o We do not accept employer-remitted contri-
457(b) plans and traditional IRAs. butions.
- ------------------------------------------------------------------------------------------------------------------------------------
QP 20 through 70 o Only transfer contributions from an existing o We do not accept regular ongoing payroll
defined contribution qualified plan trust. contributions.
o The plan must be qualified under Section o Only one additional transfer contribution
401(a) of the Internal Revenue Code. may be made during a contract year.
o For 401(k) plans, transferred contributions o No additional transfer contributions after
may only include employee pre-tax attainment of age 71 or, if later, the first
contributions. contract anniversary.
o A separate QP contract must be established
for each plan participant.
o We do not accept employer-remitted
contributions.
o We do not accept contributions from defined
benefit plans.
See Appendix II at the end of this Prospectus for a discussion of purchase considerations of QP contracts.
- ------------------------------------------------------------------------------------------------------------------------------------
+ If you purchase Guaranteed principal benefit option 2, no contributions are
permitted after the six month period beginning on the contract date.
Please see Appendix VII later in this Prospectus for more information on state
availability and/or variations of certain features and benefits.
See "Tax information" later in this Prospectus and in the SAI for a more
detailed discussion of sources of contributions and certain contribution
limitations. For information on when contributions are credited under your
contract see "Dates and prices at which contract events occur" in "More
information" later in this Prospectus.
Contract features and benefits 19
OWNER AND ANNUITANT REQUIREMENTS
Under NQ contracts, the annuitant can be different from 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. In general we
will not permit a contract to be owned by a minor unless it is pursuant to the
Uniform Gifts to Minors Act or the Uniform Transfers to Minors Act in your
state. If the Spousal protection feature is elected, the spouses must be joint
owners, one of the spouses must be the annuitant and both must be named as the
only primary beneficiaries.
Under all IRA and Rollover TSA contracts, the owner and annuitant must be the
same person. In some cases, an IRA contract may be held in a custodial
individual retirement account for the benefit of the individual annuitant. This
option may not be available under your contract.
Under QP contracts, the owner must be the trustee of the qualified plan and the
annuitant must be the plan participant/employee. See Appendix II at the end of
this Prospectus for more information on QP contracts.
- --------------------------------------------------------------------------------
A participant is an individual who is currently, or was formerly, participating
in an eligible employer's qualified plan or TSA plan.
- --------------------------------------------------------------------------------
HOW YOU CAN MAKE YOUR CONTRIBUTIONS
Except as noted below, contributions must be 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.
For your convenience, we will accept initial and additional contributions by
wire transmittal from certain broker-dealers who have agreements with us for
this purpose. Additional contributions may also be made under our automatic
investment program. These methods of payment, including circumstances under
which such contributions are considered received by us when your order is taken
by such broker-dealer, are 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 payments. 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.
- --------------------------------------------------------------------------------
Our "business day" is generally any day the New York Stock Exchange is open for
trading and generally ends at 4:00 p.m. Eastern Time. A business day does not
include a 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/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.
- --------------------------------------------------------------------------------
20 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 the Accumulator(R)
Plus(SM) 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.
Equitable Life serves as the investment manager of the Portfolios of the EQ
Advisors Trust and the AXA Premier VIP Trust. 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. The
advisers for these Portfolios, listed in the chart below, are those who make
the investment decisions for each Portfolio. The chart also indicates the
investment manager for each of the other Portfolios.
- ------------------------------------------------------------------------------------------------------------------------------------
AXA Premier VIP Trust
Portfolio Name Objective Adviser(s)
- ------------------------------------------------------------------------------------------------------------------------------------
AXA AGGRESSIVE ALLOCATION Seeks long-term capital appreciation. o Equitable Life
- ------------------------------------------------------------------------------------------------------------------------------------
AXA CONSERVATIVE ALLOCATION Seeks a high level of current income. o Equitable Life
- ------------------------------------------------------------------------------------------------------------------------------------
AXA CONSERVATIVE-PLUS Seeks current income and growth of capital, with a o Equitable Life
ALLOCATION greater emphasis on current income.
- ------------------------------------------------------------------------------------------------------------------------------------
AXA MODERATE ALLOCATION Seeks long-term capital appreciation and current income. o Equitable Life
- ------------------------------------------------------------------------------------------------------------------------------------
AXA MODERATE-PLUS Seeks long-term capital appreciation and current income, o Equitable Life
ALLOCATION with a greater emphasis on capital appreciation.
- ------------------------------------------------------------------------------------------------------------------------------------
AXA PREMIER VIP AGGRESSIVE Seeks long-term growth of capital. o Alliance Capital Management L.P.
EQUITY o MFS Investment Management
o Marsico Capital Management, LLC
o Provident Investment Counsel, Inc.
- ------------------------------------------------------------------------------------------------------------------------------------
AXA PREMIER VIP CORE BOND Seeks a balance of high current income and capital o BlackRock Advisors, Inc.
appreciation, consistent with a prudent level of risk. o Pacific Investment Management Company
LLC
- ------------------------------------------------------------------------------------------------------------------------------------
AXA PREMIER VIP HEALTH CARE Seeks long-term growth of capital. o A I M Capital Management, Inc.
o RCM Capital Management LLC
o Wellington Management Company, LLP
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AXA PREMIER VIP HIGH YIELD Seeks high total return through a combination of current o Alliance Capital Management L.P.
income and capital appreciation. o Pacific Investment Management Company
LLC
- ------------------------------------------------------------------------------------------------------------------------------------
AXA PREMIER VIP Seeks long-term growth of capital. o Alliance Capital Management L.P., through
INTERNATIONAL EQUITY Bernstein Investment Research and Manage-
ment Unit
o Bank of Ireland Asset Management
(U.S.) Limited
o Marsico Capital Management, LLC
- ------------------------------------------------------------------------------------------------------------------------------------
AXA PREMIER VIP LARGE CAP Seeks long-term growth of capital. o Alliance Capital Management L.P., through
CORE EQUITY Bernstein Investment Research and Manage-
ment Unit
o Janus Capital Management LLC
o Thornburg Investment Management, Inc.
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Contract features and benefits 21
Portfolios of the Trusts (contined)
- ------------------------------------------------------------------------------------------------------------------------------------
AXA Premier VIP Trust
Portfolio Name Objective Adviser(s)
- ------------------------------------------------------------------------------------------------------------------------------------
AXA PREMIER VIP LARGE CAP Seeks long-term growth of capital. o Alliance Capital Management L.P.
GROWTH o RCM Capital Management LLC
o TCW Investment Management Company
- ------------------------------------------------------------------------------------------------------------------------------------
AXA PREMIER VIP LARGE CAP Seeks long-term growth of capital. o Alliance Capital Management L.P.
VALUE o Institutional Capital Corporation
o MFS Investment Management
- ------------------------------------------------------------------------------------------------------------------------------------
AXA PREMIER VIP SMALL/MID Seeks long-term growth of capital. o Alliance Capital Management L.P.
CAP GROWTH o Franklin Advisers, Inc.
o Provident Investment Counsel, Inc.
- ------------------------------------------------------------------------------------------------------------------------------------
AXA PREMIER VIP SMALL/MID Seeks long-term growth of capital. o AXA Rosenberg Investment Management LLC
CAP VALUE o TCW Investment Management Company
o Wellington Management Company, LLP
- ------------------------------------------------------------------------------------------------------------------------------------
AXA PREMIER VIP TECHNOLOGY Seeks long-term growth of capital. o Firsthand Capital Management, Inc.
o RCM Capital Management LLC
o Wellington Management Company, LLP
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EQ Advisors Trust
Portfolio Name Objective Adviser(s)
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/ALLIANCE COMMON STOCK Seeks to achieve long-term growth of capital. o Alliance Capital Management L.P.
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/ALLIANCE GROWTH AND Seeks to provide a high total return. o Alliance Capital Management L.P.
INCOME
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/ALLIANCE INTERMEDIATE Seeks to achieve high current income consistent with o Alliance Capital Management L.P.
GOVERNMENT SECURITIES relative stability of principal.
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/ALLIANCE INTERNATIONAL Seeks to achieve long-term growth of capital. o Alliance Capital Management L.P.
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/ALLIANCE PREMIER GROWTH Seeks to achieve long-term growth of capital. o Alliance Capital Management L.P.
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/ALLIANCE QUALITY BOND Seeks to achieve high current income consistent with o Alliance Capital Management L.P.
moderate risk to capital.
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/ALLIANCE SMALL CAP Seeks to achieve long-term growth of capital. o Alliance Capital Management L.P.
GROWTH
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/BERNSTEIN DIVERSIFIED VALUE Seeks capital appreciation. o Alliance Capital Management L.P.,
through its Bernstein Investment Research
and Management Unit
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/CALVERT SOCIALLY Seeks long-term capital appreciation. o Calvert Asset Management Company, Inc.
RESPONSIBLE and Brown Capital Management, Inc.
- ------------------------------------------------------------------------------------------------------------------------------------
22 Contract features and benefits
Portfolios of the Trusts (continued)
- ------------------------------------------------------------------------------------------------------------------------------------
EQ Advisors Trust
Portfolio Name Objective Adviser(s)
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/CAPITAL GUARDIAN To achieve long-term growth of capital. o Capital Guardian Trust Company
INTERNATIONAL
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/CAPITAL GUARDIAN Seeks to achieve long-term growth of capital. o Capital Guardian Trust Company
RESEARCH
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/CAPITAL GUARDIAN U.S. Seeks to achieve long-term growth of capital. o Capital Guardian Trust Company
EQUITY
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/EMERGING MARKETS EQUITY Seeks long-term capital appreciation. o Morgan Stanley Investment Management,
Inc.
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/EQUITY 500 INDEX Seeks a total return before expenses that approximates o 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. o Evergreen Investment Management
Company, LLC
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/FI MID CAP Seeks long-term growth of capital. o Fidelity Management & Research Company
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/FI SMALL/MID CAP VALUE Seeks long-term capital appreciation. o Fidelity Management & Research Company
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/J.P. MORGAN CORE BOND Seeks to provide a high total return consistent with o J.P. Morgan Investment Management Inc.
moderate risk to capital and maintenance of liquidity.
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/JANUS LARGE CAP GROWTH Seeks long-term growth of capital. o Janus Capital Management LLC
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/LAZARD SMALL CAP VALUE Seeks capital appreciation. o Lazard Asset Management, LLC
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/MARSICO FOCUS Seeks long-term growth of capital. o Marsico Capital Management, LLC
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/MERCURY BASIC VALUE Seeks capital appreciation and secondarily, income. o Mercury Advisors
EQUITY
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/MERCURY INTERNATIONAL Seeks capital appreciation. o Merrill Lynch Investment Managers Interna-
VALUE tional Limited
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/MFS EMERGING GROWTH Seeks to provide long-term capital growth. o MFS Investment Management
COMPANIES
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/MFS INVESTORS TRUST Seeks long-term growth of capital with secondary objec- o MFS Investment Management
tive to seek reasonable current income.
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/MONEY MARKET Seeks to obtain a high level of current income, preserve o Alliance Capital Management L.P.
its assets and maintain liquidity.
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/PUTNAM GROWTH & INCOME Seeks capital growth. Current income is a secondary o Putnam Investment Management, LLC
VALUE objective.
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/PUTNAM VOYAGER Seeks long-term growth of capital and any increased o Putnam Investment Management, LLC
income that results from this growth.
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Contract features and benefits 23
Portfolios of the Trusts (continued)
- ------------------------------------------------------------------------------------------------------------------------------------
EQ Advisors Trust
Portfolio Name Objective Adviser(s)
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/SMALL COMPANY INDEX Seeks to replicate as closely as possible (before the o Alliance Capital Management L.P.
deduction of portfolio expenses) the total return of the
Russell 2000 Index.
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/TECHNOLOGY Seeks to achieve long-term growth of capital. o Firsthand Capital Management, Inc.
o RCM Capital Management LLC
o Wellington Management Company, LLP
- ------------------------------------------------------------------------------------------------------------------------------------
Barr Rosenberg Variable
Insurance Trust
Portfolio Name Objective Investment Manager/Adviser
- ------------------------------------------------------------------------------------------------------------------------------------
LAUDUS ROSENBERG VIT VALUE Seeks to increase the value of your investment in bull o Charles Schwab Investment Management,
LONG/SHORT EQUITY markets and bear markets through strategies that are Inc.
designed to have limited exposure to general equity o AXA Rosenberg Investment Management
market risk. LLC
- ------------------------------------------------------------------------------------------------------------------------------------
The Universal Institutional
Funds, Inc.
Portfolio Name Objective Investment Manager
- ------------------------------------------------------------------------------------------------------------------------------------
U.S. REAL ESTATE -- Class II(1) Seeks to provide above average current income and long- o Van Kampen(2)
term capital appreciation by investing primarily in equity
securities of companies in the U.S. real estate industry,
including real estate investment trusts.
- ------------------------------------------------------------------------------------------------------------------------------------
(1) 'Class II' Shares are defined in the current underlying Trust prospectus.
(2) Van Kampen is the name under which Morgan Stanley Investment Management
Inc. does business in certain situations.
You should consider the investment objectives, risks and charges and expenses
of the Portfolios carefully before investing. The prospectuses for the Trusts
contain this and other important information about the Portfolios. The
prospectuses should be read carefully before investing. In order to obtain
copies of Trust prospectuses that do not accompany this Prospectus, you may
call one of our customer service representatives at 1-800-789-7771.
24 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. We reserve the right to change these procedures.
All interest rates are effective annual rates, but before deduction of annual
administrative charges or any withdrawal charges.
The minimum yearly rate for 2004 is equal to the lifetime minimum rate of your
contract. Depending on the state where your contract is issued, your lifetime
minimum rate is either 1.5% or 3.00%. The data page for your contract shows the
lifetime minimum rate. The annual minimum rate will never be less than the
lifetime minimum rate. Check with your financial professional as to which rate
applies in your state. Current interest rates will never be less than the
yearly guaranteed interest rate.
Generally, contributions and transfers into and out of the guaranteed interest
option are limited. See "Transferring your money among the investment options"
later in this Prospectus for restrictions on transfers from the guaranteed
interest option.
FIXED MATURITY OPTIONS
We offer fixed maturity options with maturity dates ranging from one to ten
years. We will not accept allocations to a fixed maturity option if on the date
the contribution or transfer is to be applied the rate to maturity is 3%. This
means that at points in time there may be no fixed maturity options available.
You can allocate your contributions to one or more of these fixed maturity
options, however, you may not have more than 12 different maturities running
during any contract year. These amounts become part of a non-unitized separate
account. 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 all states. Check with your financial professional
or see Appendix VII later in this Prospectus to see if fixed maturity options
are available in your state.
- --------------------------------------------------------------------------------
Fixed maturity options generally range from one to ten years to maturity.
- --------------------------------------------------------------------------------
Under the Special 10 year fixed maturity option (which is available only under
GPB Option 2), additional contributions will have the same maturity date as
your initial contribution (See "The guaranteed principal benefits," below). The
rate to maturity you will receive for each additional contribution is the rate
to maturity in effect for new contributions allocated to that fixed maturity
option on the date we apply your contribution.
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 amounts 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 offer fixed maturity options with
maturity dates ranging from one to ten years. Not all of these fixed maturity
options will be available for annuitant ages 76 and older. See "Allocating your
contributions" below.
Each new contribution is applied to a new fixed maturity option. When you apply
for an Accumulator(R) Plus(SM) contract, a 60-day rate lock-in will apply from
the date the application is signed. Any contributions received and designated
for a fixed maturity option during this period will receive the then current
fixed maturity option rate or the rate that was in effect on the date that the
application was signed, whichever is greater. There is no rate lock available
for subsequent contributions to the contract after 60 days, transfers from the
variable investment options or the guaranteed interest option into a fixed
maturity option or transfers from one fixed maturity option to another.
YOUR CHOICES AT THE MATURITY DATE. We will notify you between 15 and 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 in "Allocating your
contributions," below would apply:
(a) transfer the maturity value into another available fixed maturity option,
any of the variable investment options or the guaranteed interest option;
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
shortest available maturity option beginning on that date. As of February 13,
2004, the next available maturity date was February 13, 2012. If no fixed
maturity options are available, we will transfer your maturity value to the
EQ/Money Market option.
MARKET VALUE ADJUSTMENT. If you make any withdrawals (including transfers,
surrender 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 in effect at that time for new fixed maturity
options (adjusted to reflect a similar maturity date), and
Contract features and benefits 25
(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 III 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 three ways to allocate your contributions under your
contract: self-directed, the guaranteed principal benefits, or dollar cost
averaging.
SELF-DIRECTED ALLOCATION
You may allocate your contributions to one or more, or all, of the variable
investment options, guaranteed interest option and fixed maturity options.
Allocations must be in whole percentages and you may change your allocations at
any time. No more than 25% of any contribution may be allocated to the
guaranteed interest option. The total of your allocations into all available
investment options must equal 100%. If the annuitant is age 76-80, you may
allocate contributions to fixed maturity options with maturities of seven years
or less. If the annuitant is age 81 or older, you may allocate contributions to
fixed maturity options with maturities of five years or less. Also you may not
allocate amounts to fixed maturity options with maturity dates that are later
than the date annuity payments are to begin.
THE GUARANTEED PRINCIPAL BENEFITS
Subject to state availability (see Appendix VII later in this Prospectus for
state availability of these benefits), we offer a Guaranteed principal benefit
("GPB") with two options. You may only elect one of the GPBs. We will not offer
either GPB when the rate to maturity for the applicable fixed maturity option
is 3%. If you elect either GPB, you may not elect the Guaranteed minimum income
benefit, the systematic withdrawals option or the substantially equal
withdrawals option. Both GPB options allow you to allocate a portion of your
contribution or contributions to the variable investment options, while
ensuring that your account value will at least equal your contributions
adjusted for withdrawals and transfers on a specified date. GPB Option 2
generally provides you with the ability to allocate more of your contributions
to the variable investment options than could be allocated using GPB Option 1.
You may elect GPB Option 1 when the contract is issued (after age 75, only the
7-year fixed maturity option is available; for QP the annuitant must be age 70
or younger when the contract is issued). You may elect GPB Option 2 only if the
annuitant is age 75 (70 for QP contracts) or younger when the contract is
issued. If you are purchasing an IRA, QP or Rollover TSA contract, before you
either purchase GPB Option 2 or elect GPB Option 1 with 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, guaranteed
interest option and permissible funds outside this contract are sufficient to
meet your required minimum distributions. See "Tax information" later in this
Prospectus and in the SAI.
GUARANTEED PRINCIPAL BENEFIT OPTION 1. Under GPB Option 1, you select a fixed
maturity option at the time you sign your application. We specify the portion
of your initial contribution (plus any applicable portion of the credit we pay)
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 (plus
any credit paid under your contract) on the fixed maturity option's maturity
date. The percentage of your contribution allocated to the fixed maturity
option will be calculated based upon the rate to maturity then in effect for
the fixed maturity option you choose. Your contract will contain information on
the amount of your contribution allocated to the fixed maturity option. If you
make any withdrawals or transfers from the fixed maturity option before the
option's maturity date, the amount in the fixed maturity option will be
adjusted and may no longer grow to equal your initial contribution under GPB
Option 1. The maturity date you select generally may not be later than 10
years, or earlier than 7 years from your contract date. You may allocate the
rest of your initial contribution to the variable investment options and
guaranteed interest option however you choose (unless you elect a dollar cost
averaging program, in which case the remainder of your initial contribution
must be allocated to the dollar cost averaging program). Upon the maturity date
of the fixed maturity option, you will be provided with the same notice and the
same choices with respect to the maturity value as described above under "Your
choices at the maturity date." There is no charge for GPB Option 1.
GUARANTEED PRINCIPAL BENEFIT OPTION 2. You may purchase GPB Option 2 at the
time you apply for your contract. IF YOU PURCHASE GPB OPTION 2, YOU MAY NOT
MAKE ADDITIONAL CONTRIBUTIONS TO YOUR CONTRACT AFTER SIX MONTHS FROM THE
CONTRACT ISSUE DATE OR AT ANY EARLIER TIME IF AT SUCH TIME THE THEN APPLICABLE
RATE TO MATURITY ON THE SPECIAL 10 YEAR FIXED MATURITY OPTION IS 3%. Therefore,
any discussion in this Prospectus that involves any additional contributions
after the first six months will be inapplicable.
We specify the portion of your initial contribution (including any applicable
portion of the credit we pay), and any additional permitted contributions, to
be allocated to a Special 10 year fixed maturity option. Your contract will
contain information on the percentage of applicable contributions allocated to
the Special 10 year fixed maturity option. You may allocate the rest of your
contributions among the investment options (other than the Special 10 year
fixed maturity option) however you choose, as permitted under your contract and
26 Contract features and benefits
other than the Investment simplifier (unless you elect a dollar cost averaging
program, in which case all contributions, other than amounts allocated to the
Special 10 year fixed maturity option, must be allocated to the dollar cost
averaging program). The Special 10 year fixed maturity option will earn
interest at the specified rate to maturity then in effect.
If on the 10th contract date anniversary, your annuity account value is less
than the amount that is guaranteed under GPB Option 2, we will increase your
annuity account value to be equal to the guaranteed amount under GPB Option 2.
Any such additional amounts added to your annuity account value will be
allocated to the EQ/Money Market investment option. After the maturity date of
the Special 10 year fixed maturity option, the guarantee under GPB Option 2
will terminate. Upon the maturity date of the Special 10 year fixed maturity
option, you will be provided with the same notice and the same choices with
respect to the maturity value as described above under "Your choices at the
maturity date." The guaranteed amount under GPB Option 2 is equal to your
initial contribution adjusted for any additional permitted contributions
(excluding any credit applied to your contract), transfers out of the Special
10 year fixed maturity option and withdrawals from the contract (see "How
withdrawals (and transfers out of the Special 10 year fixed maturity option)
affect your Guaranteed minimum income benefit, Guaranteed minimum death benefit
and Guaranteed principal benefit option 2" in "Accessing your money" later in
this Prospectus). Any transfers or withdrawals from the Special 10 year fixed
maturity option will also be subject to a market value adjustment (see "Market
value adjustment" under "Fixed maturity options" above in this section).
Once you purchase the Guaranteed principal benefit option 2, you may not
voluntarily terminate this benefit. GPB Option 2 will terminate if the contract
terminates before the maturity date of the Special 10 year fixed maturity
option. If the owner and the annuitant are different people and the owner dies
before the maturity date of the Special 10 year fixed maturity option, we will
continue GPB Option 2 only if the contract can continue through the maturity
date of the Special 10 year fixed maturity option. If the contract cannot so
continue, we will terminate GPB Option 2. GPB Option 2 will continue where
there is a successor owner/annuitant. GPB Option 2 will terminate upon the
exercise of the beneficiary continuation option. See "Payment of death benefit"
later in this Prospectus for more information about the continuation of the
contract after the death of the owner and/or the annuitant.
There is a fee associated with GPB Option 2 (see "Charges and expenses" later
in this Prospectus). You should note that the purchase of GPB Option 2 is not
appropriate if you want to make additional contributions to your contract
beyond the first six months after your contract is issued. If you later decide
that you would like to make additional contributions to the Accumulator(R)
Plus(SM) contract, we may permit you to purchase another contract. If we do,
however, you should note that we do not reduce or waive any of the charges on
the new contract, nor do we guarantee that the features available under this
contract will be available under the new contract. This means that you might
end up paying more with respect to certain charges than if you had simply
purchased a single contract (for example, the administrative charge).
The purchase of GPB Option 2 is also not appropriate if you plan on terminating
your contract before the maturity date of the Special 10 year fixed maturity
option. In addition, because we prohibit contributions to your contract after
the first six months, certain contract benefits that are dependent upon
contributions or account value will be limited (for example the amount of your
credit, the Guaranteed death benefits and Protection Plus). You should also
note that if you intend to allocate a large percentage of your contributions to
the guaranteed interest option or other fixed maturity options, the purchase of
GPB Option 2 may not be appropriate because of the guarantees already provided
by these options. In addition, GPB Option 2 protects only contributions (not
including the credit), and therefore your account value would have to decline
in an amount greater than the credit in order for the benefit to apply. An
example of the effect of GPB Option 1 and GPB Option 2 on your annuity contract
is included in Appendix VI later in this Prospectus.
DOLLAR COST AVERAGING
We offer a variety of dollar cost averaging programs. You may only participate
in one program at a time. Each program 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. You may not make
transfers to the fixed maturity options.
- --------------------------------------------------------------------------------
Units measure your value in each variable investment option.
- --------------------------------------------------------------------------------
GENERAL DOLLAR COST AVERAGING PROGRAM. If your value in the EQ/Money Market
option is at least $5,000, you may choose, at any time, to have a specified
dollar amount or percentage of your value transferred from that option to the
other variable investment options. You can select to have transfers made on a
monthly, quarterly or annual basis. The transfer date will be the same calendar
day of the month as the contract date, but not later than the 28th day of the
month. You can also specify the number of transfers or instruct us to continue
making the transfers until all amounts in the EQ/Money Market option have been
transferred out. The minimum amount that we will transfer each time is $250.
If, on any transfer date, your value in the EQ/Money Market option is equal to
or less than the amount you have elected to have transferred, the entire amount
will be transferred. The dollar cost averaging program will then end. You may
change the transfer amount once each contract year or cancel this program at
any time.
INVESTMENT SIMPLIFIER
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. Transfers may be made on a monthly,
quarterly or annual basis. You can specify the number of transfers or instruct
us to continue to make transfers until all available amounts in the guaranteed
interest option have been transferred out.
Contract features and benefits 27
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. The transfer date will be the same calendar day of the month
as the contract date but not later than the 28th day of the month. The minimum
transfer amount is $50. The fixed-dollar option is subject to the guaranteed
interest option transfer limitations described under "Transferring your account
value" in "Transferring your money among investment options" later in this
Prospectus. While the program is running, any transfer that exceeds those
limitations will cause the program to end for that contract year. You will be
notified. You must send in a request form to resume the program in the next or
subsequent contract years.
If, on any transfer date, your value in the guaranteed interest option is equal
to or less than the amount you have elected to have transferred, the entire
amount will be transferred, and the program will end. You may change the
transfer amount once each contract year or cancel this program at any time.
Interest sweep option. Under this option, you may elect to have monthly
transfers from amounts in the guaranteed interest option into the variable
investment options of your choice. The transfer date will be the last business
day of the month. 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. We will automatically cancel the interest sweep
program if the amount in the guaranteed interest option is less than $7,500 on
the last day of the month for two months in a row. For the interest sweep
option, 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.
----------------------------------
You may not participate in any dollar cost averaging program if you are
participating in the rebalancing program. If you elect a GPB, you may also
elect the General dollar cost averaging program. If you elect either of these
programs, everything other than amounts allocated to the fixed maturity option
under the GPB must be allocated to that dollar cost averaging program. You may
still elect the Investment simplifier for amounts transferred from investment
options (other than the fixed maturity option under the GPB you have elected),
and, for GPB Option 1, you may also elect Investment simplifier for subsequent
contributions. See "Transferring your money among investment options" later in
this Prospectus.
CREDITS
A credit will also be allocated to your account value at the same time that we
allocate your contribution. Credits are allocated to the same investment
options based on the same percentages used to allocate your contributions.
The amount of the credit will be 4%, 4.5% or 5% of each contribution based on
the following breakpoints and rules:
- -----------------------------------------------------------
Credit percentage
First year total contributions* applied to
Breakpoints contributions
- -----------------------------------------------------------
Less than $500,000 4%
- -----------------------------------------------------------
$500,000-$999,999.99 4.5%
- -----------------------------------------------------------
$1 million or more 5%
- -----------------------------------------------------------
- ----------------------
* First year total contributions means your total contributions made in the
first contract year.
The percentage of the credit is based on your first year total contributions.
If you purchase GPB Option 2, you may not make additional contributions after
the first six months. This credit percentage will be credited to each
contribution made in the first year (after adjustment as described below), as
well as the second and later contract years. Although the credit, as adjusted
at the end of the first contract year, will be based upon first year total
contributions, the following rules affect the percentage with which
contributions made in the first contract year are credited during the first
contract year:
o Indication of intent: If you indicate in the application at the time you
purchase your contract an intention to make additional contributions to
meet one of the breakpoints (the "Expected First Year Contribution
Amount") and your initial contribution is at least 50% of the Expected
First Year Contribution Amount, your credit percentage will be as follows:
o For any contributions resulting in total contributions to date less than
or equal to your Expected First Year Contribution Amount, the credit
percentage will be the percentage that applies to the Expected First Year
Contribution Amount based on the table above.
o For any subsequent contribution that results in your total contributions
to date exceeding your Expected First Year Contribution Amount, such that
the credit percentage should have been higher, we will increase the
credit percentage applied to that contribution, as well as any prior or
subsequent contributions made in the first contract year, accordingly.
o If at the end of the first contract year your total contributions were
lower than your Expected First Year Contribution Amount such that the
credit applied should have been lower, we will recover any Excess Credit.
The Excess Credit is equal to the difference between the credit that was
actually applied based on your Expected First Year Contribution Amount
(as applicable) and the credit that should have been applied based on
first year total contributions.
o The "Indication of intent" approach to first year contributions is not
available in all states. Please see Appendix VII later in this Prospectus
for information on state availability.
o No indication of intent:
o For your initial contribution we will apply the credit percentage based
upon the above table.
o For any subsequent contribution that results in a higher applicable
credit percentage (based on total contributions to date),
28 Contract features and benefits
we will increase the credit percentage applied to that contribution, as
well as any prior or subsequent contributions made in the first contract
year, accordingly.
In addition to the recovery of any Excess Credit, we will recover all of the
credit or a portion of the credit in the following situations:
o If you exercise your right to cancel the contract, we will recover the entire
credit made to your contract (see "Your right to cancel within a certain
number of days" later in this Prospectus)(1)
o If you start receiving annuity payments within three years of making any
contribution, we will recover the credit that applies to any contribution
made within the prior three years. Please see Appendix VII later in this
Prospectus for information on state variations.
We will recover any credit on a pro rata basis from the value in your variable
investment options and 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
the withdrawal will be withdrawn from the fixed maturity options in order of
the earliest maturing date(s). A market value adjustment may apply to
withdrawals from the fixed maturity options.
We do not consider credits to be contributions for purposes of any discussion
in this Prospectus. Credits are also not considered to be part of your
investment in the contract for tax purposes.
We use a portion of the mortality and expense risks charge and withdrawal
charge to help recover our cost of providing the credit. See "Charges and
expenses" later in this Prospectus. The charge associated with the credit may,
over time, exceed the sum of the credit and any related earnings. You should
consider this possibility before purchasing the contract.
YOUR BENEFIT BASE
A benefit base is used to calculate the Guaranteed minimum income benefit and
the death benefits, as described in this section. Your benefit base is not an
account value or a cash value. See also "Our Guaranteed minimum income benefit
option" and "Guaranteed minimum death benefit" below.
STANDARD DEATH BENEFIT. Your benefit base is equal to:
o your initial contribution and any additional contributions to the contract;
less
o a deduction that reflects any withdrawals you make. (See "How withdrawals
(and transfers out of the Special 10 year fixed maturity option) affect your
Guaranteed minimum income benefit, Guaranteed minimum death benefit and
Guaranteed principal benefit option 2" in "Accessing your money" later in
this Prospectus.)
6% ROLL UP TO AGE 85 (USED FOR THE GREATER OF THE 6% ROLL UP TO AGE 85 OR THE
ANNUAL RATCHET TO AGE 85 ENHANCED DEATH BENEFIT AND FOR THE GUARANTEED MINIMUM
INCOME BENEFIT). Your benefit base is equal to:
o your initial contribution and any additional contributions to the contract;
plus
o daily interest; less
o a deduction that reflects any withdrawals you make (the amount of the
deduction is described under "How withdrawals (and transfers out of the
Special 10 year fixed maturity option) affect your Guaranteed minimum
income benefit, Guaranteed minimum death benefit and Guaranteed principal
benefit option 2" in "Accessing your money" and the section entitled
"Charges and expenses" later in this Prospectus.)
The effective annual interest rate credited to this benefit base is:
o 6% with respect to the variable investment options (other than EQ/Alliance
Intermediate Government Securities and EQ/Money Market); and
o 3% with respect to the EQ/Alliance Intermediate Government Securities and
EQ/Money Market, the fixed maturity options, the Special 10 year fixed
maturity option, the guaranteed interest option and the loan reserve
account under Rollover TSA (if applicable).
No interest is credited to the benefit base after the contract anniversary
following the annuitant's 85th birthday.
ANNUAL RATCHET TO AGE 85 (USED FOR THE ANNUAL RATCHET TO AGE 85 ENHANCED DEATH
BENEFIT OR THE GREATER OF THE 6% ROLL UP TO AGE 85 OR THE ANNUAL RATCHET TO AGE
85 ENHANCED DEATH BENEFIT AND FOR THE GUARANTEED MINIMUM INCOME BENEFIT). Your
benefit base is equal to the greater of:
o your initial contribution to the contract and any additional contributions,
or
o your highest account value on any contract anniversary up to the contract
anniversary following the annuitant's 85th birthday, plus any
contributions made since the most recent contract anniversary,
each less
o a deduction that reflects any withdrawals you make (the amount of the
deduction is described under "How withdrawals (and transfers out of the
Special 10 year fixed maturity option) affect your Guaranteed minimum
income benefit, Guaranteed minimum death benefit and Guaranteed principal
benefit option 2" in "Accessing your money" later in this Prospectus).
GREATER OF THE 6% ROLL UP TO AGE 85 OR THE ANNUAL RATCHET TO AGE 85 ENHANCED
DEATH BENEFIT AND THE GUARANTEED MINIMUM INCOME BENEFIT. Your benefit base is
equal to the greater of the benefit base computed for the 6% Roll up to age 85
or the benefit base computed for Annual Ratchet to age 85, as described
immediately above, on each contract anniversary. For the Guaranteed minimum
income benefit, the benefit base is reduced by any applicable withdrawal charge
remaining when the option is exercised.
- ---------
(1) The amount we return to you upon exercise of this right to cancel will not
include any credit or the amount of charges deducted prior to cancellation but
will reflect, except in states where we are required to return the amount of
your contributions, any investment gain or loss in the variable investment
options associated with your contributions and with the full amount of the
credit.
Contract features and benefits 29
ANNUITY PURCHASE FACTORS
Annuity purchase factors are the factors applied to determine your periodic
payments under the Guaranteed minimum income benefit and annuity payout
options. The Guaranteed minimum income benefit is discussed under "Our
Guaranteed minimum income benefit option" below and annuity payout options are
discussed under "Your annuity payout options" in "Accessing your money" later
in this Prospectus. The guaranteed annuity purchase factors are those factors
specified in your contract. The current annuity purchase factors are those
factors that are in effect at any given time. Annuity purchase factors are
based on interest rates, mortality tables, frequency of payments, the form of
annuity benefit, and the annuitant's (and any joint annuitant's) age and sex in
certain instances.
OUR GUARANTEED MINIMUM INCOME BENEFIT OPTION
The Guaranteed minimum income benefit is available if the annuitant is age 20
through 75 at the time the contract is issued. There is an additional charge
for the Guaranteed minimum income benefit which is described under "Guaranteed
minimum income benefit charge" in "Charges and expenses" later in this
Prospectus. Once you purchase the Guaranteed minimum income benefit, you may
not voluntarily terminate this benefit.
This feature is not available if you elect a GPB. If you are purchasing this
contract to fund a Charitable Remainder Trust, the Guaranteed minimum income
benefit is not available, except for certain split-funded Charitable Remainder
Trusts. If the annuitant was older than age 60 at the time an IRA, QP or
Rollover TSA contract was issued, the Guaranteed minimum income benefit may not
be an appropriate feature because the minimum distributions required by tax law
generally must begin before the Guaranteed minimum income benefit can be
exercised.
The Guaranteed minimum income benefit guarantees you a minimum amount of fixed
income under your choice of a life annuity fixed payout option or a life with a
period certain payout option. You choose which of these payout options you want
and whether you want the option to be paid on a single or joint life basis at
the time you exercise your Guaranteed minimum income benefit. The maximum
period certain available under the life with a period certain payout option is
10 years. This period may be shorter, depending on the annuitant's age as
follows:
- -----------------------------------------------------
Level payments
- -----------------------------------------------------
Period certain years
Annuitant's age at ----------------------
exercise IRAs NQ
- -----------------------------------------------------
75 and younger 10 10
76 9 10
77 8 10
78 7 10
79 7 10
80 7 10
81 7 9
82 7 8
83 7 7
84 6 6
85 5 5
- -----------------------------------------------------
We may also make other forms of payout options available. For a description of
payout options, see "Your annuity payout options" in "Accessing your money"
later in this Prospectus.
- --------------------------------------------------------------------------------
The Guaranteed minimum income benefit, should be regarded as a safety net only.
It provides income protection if you elect an income payout while the annuitant
is alive.
- --------------------------------------------------------------------------------
When you exercise the Guaranteed minimum income benefit, the annual lifetime
income that you will receive will be the greater of (i) your Guaranteed minimum
income benefit which is calculated by applying your Guaranteed minimum income
benefit base less any outstanding loan plus accrued interest (applies to
Rollover TSA only) at guaranteed annuity purchase factors, or (ii) the income
provided by applying your actual account value at our then current annuity
purchase factors. The benefit base is applied only to the guaranteed annuity
purchase factors under the Guaranteed minimum income benefit in your contract
and not to any other guaranteed or current annuity purchase rates. The amount
of income you actually receive will be determined when we receive your request
to exercise the benefit.
When you elect to receive annual lifetime income, your contract will terminate
and you will receive a new contract for the annuity payout option. For a
discussion of when your payments will begin and end, see "Exercise of
Guaranteed minimum income benefit" below.
Before you elect the Guaranteed minimum income benefit, you should consider the
fact that it provides a form of insurance and is based on conservative
actuarial factors. The guaranteed annuity purchase factors we use to determine
your payout annuity benefit under the Guaranteed minimum income benefit are
more conservative than the guaranteed annuity purchase factors we use for our
standard payout annuity options. This means that, assuming the same amount is
applied to purchase the benefit and that we use guaranteed annuity purchase
factors to compute the benefit, each periodic payment under the Guaranteed
minimum income benefit payout annuity will be smaller than each periodic
payment under our standard payout annuity options. Therefore, even if your
account value is less than your benefit base, you may generate more income by
applying your account value to current annuity purchase factors. We will make
this comparison for you when the need arises.
ILLUSTRATIONS OF GUARANTEED MINIMUM INCOME BENEFIT. Assuming the 6% Roll up to
age 85 benefit base, the table below illustrates the Guaranteed minimum income
benefit amounts per $100,000 of initial contribution, for a male annuitant age
60 (at issue) on the contract date anniversaries indicated, who has elected the
life annuity fixed payout option, using the guaranteed annuity purchase factors
as of the date of this Prospectus, assuming no additional contributions,
withdrawals or loans under Rollover TSA contracts, and assuming
30 Contract features and benefits
there were no allocations to the EQ/Alliance Intermediate Government
Securities, EQ/Money Market, the guaranteed interest option, the fixed maturity
options (including the Special 10 year fixed maturity option) or the loan
reserve account under Rollover TSA contracts.
- ---------------------------------------------------
Guaranteed minimum
Contract date income benefit -- annual
anniversary at exercise income payable for life
- ---------------------------------------------------
10 $11,891
15 $18,597
- ---------------------------------------------------
EXERCISE OF GUARANTEED MINIMUM INCOME BENEFIT. On each contract date
anniversary that you are eligible to exercise the Guaranteed minimum income
benefit, we will send you an eligibility notice illustrating how much income
could be provided as of the contract date anniversary. You must notify us
within 30 days following the contract date anniversary if you want to exercise
the Guaranteed minimum income benefit. You must return your contract to us
along with all required information in order to exercise this benefit. You will
begin receiving annual payments one year after the annuity payout contract is
issued. You may choose to take a withdrawal prior to exercising the Guaranteed
minimum income benefit, which will reduce your payments. You may not partially
exercise this benefit. See "Accessing your money" under "Withdrawing your
account value" later in this Prospectus. Payments end with the last payment
before the annuitant's (or joint annuitant's, if applicable) death, or if
later, the end of the period certain (where the payout option chosen includes a
period certain).
EXERCISE RULES. You will be eligible to exercise the Guaranteed minimum income
benefit as follows:
o If the annuitant was at least age 20 and no older than age 44 when the
contract was issued, you are eligible to exercise the Guaranteed minimum
income benefit within 30 days following each contract date anniversary
beginning with the 15th contract date anniversary.
o If the annuitant was at least age 45 and no older than age 49 when the
contract was issued, you are eligible to exercise the Guaranteed minimum
income benefit within 30 days following each contract date anniversary
after the annuitant is age 60.
o If the annuitant was at least age 50 and no older than age 75 when the
contract was issued, you are eligible to exercise the Guaranteed minimum
income benefit within 30 days following each contract date anniversary
beginning with the 10th contract date anniversary.
Please note:
(i) the latest date you may exercise the Guaranteed minimum income benefit
is within 30 days following the contract date anniversary following the
annuitant's 85th birthday;
(ii) if the annuitant was age 75 when the contract was issued, the only time
you may exercise the Guaranteed minimum income benefit is within 30 days
following the first contract date anniversary that it becomes available;
(iii) for QP and Rollover TSA contracts, if you are eligible to exercise
your Guaranteed minimum income benefit, we will first roll over amounts in
such contract to a Rollover IRA contract. You will be the owner of the
Rollover IRA contract; and
(iv) a successor owner/annuitant may only continue the Guaranteed minimum
income benefit if the contract is not past the last date on which the
original annuitant could have exercised the benefit. In addition, the
successor owner/annuitant must be eligible to continue the benefit and to
exercise the benefit under the applicable exercise rule (described in the
above bullets) using the following additional rules. The successor
owner/annuitant's age on the date of the annuitant's death replaces the
annuitant's age at issue for purposes of determining the availability of
the benefit and which of the exercise rules applies. The original contract
issue date will continue to apply for purposes of the exercise rules.
Please see both "Termination of your contract" in "Determining your contract
value" and "How withdrawals (and transfers out of the Special 10 year fixed
maturity option) affect your Guaranteed minimum income benefit, Guaranteed
minimum death benefit and Guaranteed principal benefit option 2" in "Accessing
your money" and the section entitled "Charges and expenses" later in this
Prospectus for more information on these guaranteed benefits.
GUARANTEED MINIMUM DEATH BENEFIT
Your contract provides a death benefit. If you do not elect one of the enhanced
death benefits 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 standard death benefit, whichever provides the highest
amount. The standard death benefit is equal to your total contributions
(adjusted for any withdrawals and any withdrawal charges, and any taxes that
apply). Once your contract is issued, you may not change or voluntarily
terminate your death benefit.
If you elect one of the guaranteed death benefits, 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 your elected guaranteed
death benefit on the date of the annuitant's death (adjusted for any subsequent
withdrawals, withdrawal charges and taxes that apply) whichever provides the
highest amount. If you elect the Spousal protection option, the guaranteed
minimum death benefit is based on the age of the older spouse, who may or may
not be the annuitant, for the life of the contract. See "Spousal protection" in
"Payment of death benefit" later in this Prospectus for more information.
OPTIONAL ENHANCED DEATH BENEFITS APPLICABLE FOR ANNUITANT AGES 0 THROUGH 75 AT
ISSUE OF NQ CONTRACTS; 20 THROUGH 75 AT ISSUE OF ROLLOVER IRA, ROTH CONVERSION
IRA AND ROLLOVER TSA CONTRACTS; AND 20 THROUGH 70 AT ISSUE OF QP CONTRACTS.
Subject to state availability (please see Appendix VII later in this Prospectus
for state availability of these benefits), you may elect one of the following
enhanced death benefits:
Contract features and benefits 31
ANNUAL RATCHET TO AGE 85.
THE GREATER OF THE 6% ROLL UP TO AGE 85 OR THE ANNUAL RATCHET TO AGE 85.
Each enhanced death benefit is equal to its corresponding benefit base
described earlier in "Your benefit base." Once you have made your enhanced
death benefit election, you may not change it.
The standard death benefit is the only death benefit available for annuitant
ages 76 to 80 at issue of NQ, Rollover IRA, Roth Conversion IRA and Rollover
TSA contracts.
----------------------------------
Please see both "Termination of your contract" in "Determining your contract
value" and "How withdrawals (and transfers out of the Special 10 year fixed
maturity option) affect your Guaranteed minimum income benefit, Guaranteed
minimum death benefit and Guaranteed principal benefit option 2" in "Accessing
your money" and the section entitled "Charges and expenses" later in this
Prospectus for more information on these guaranteed benefits.
See Appendix IV later in this Prospectus for an example of how we calculate an
enhanced minimum death benefit.
PROTECTION PLUS
Subject to state and contract availability (please see Appendix VII later in
this Prospectus for state availability of these benefits), if you are
purchasing a contract, under which the Protection Plus feature is available,
you may elect the Protection Plus death benefit at the time you purchase your
contract. Protection Plus provides an additional death benefit as described
below. See the appropriate part of "Tax information" later in this Prospectus
for the potential tax consequences of electing to purchase the Protection Plus
feature in an NQ, IRA or Rollover TSA contract. Once you purchase the
Protection Plus feature, you may not voluntarily terminate the feature.
If the annuitant is 70 or younger when we issue your contract (or if the
successor owner/annuitant is 70 or younger when he or she becomes the successor
owner/annuitant), the death benefit will be:
the greater of:
o the account value or
o any applicable death benefit
Increased by:
o such death benefit less total net contributions, multiplied by 40%.
For purposes of calculating your Protection Plus benefit, the following
applies: (i) "Net contributions" are the total contributions made (or if
applicable, the total amount that would otherwise have been paid as a death
benefit had the successor owner/annuitant election not been made plus any
subsequent contributions) adjusted for each withdrawal that exceeds your
Protection Plus earnings. "Net contributions" are reduced by the amount of that
excess. Protection Plus earnings are equal to (a) minus (b) where (a) is the
greater of the account value and the death benefit immediately prior to the
withdrawal and (b) is the net contributions as adjusted by any prior
withdrawals (credit amounts are not included in "net contributions"); and (ii)
"Death benefit" is equal to the greater of the account value as of the date we
receive satisfactory proof of death or any applicable Guaranteed minimum death
benefit as of the date of death.
If the annuitant is age 71 through 75 when we issue your contract (or if the
successor owner/annuitant is between the ages of 71 and 75 when he or she
becomes the successor owner/annuitant and Protection Plus had been elected at
issue), the death benefit will be:
the greater of:
o the account value or
o any applicable death benefit
Increased by:
o such death benefit (as described above) less total net contributions,
multiplied by 25%.
The value of the Protection Plus death benefit is frozen on the first contract
date anniversary after the annuitant turns age 80, except that the benefit will
be reduced for withdrawals on a pro rata basis. Reduction on a pro rata basis
means that we calculate the percentage of the current account value that is
being withdrawn and we reduce the benefit by that percentage. For example, if
the account value is $30,000 and you withdraw $12,000, you have withdrawn 40%
of your account value. If the benefit is $40,000 before the withdrawal, it
would be reduced by $16,000 ($40,000 X .40) and the benefit after the
withdrawal would be $24,000 ($40,000-$16,000).
If you elect Spousal protection, the Protection Plus benefit is based on the
age of the older spouse, who may or may not be the annuitant. Upon the death of
the non-annuitant spouse, the account value will be increased by the value of
the Protection Plus benefit as of the date we receive due proof of death. Upon
the death of the annuitant, the value of the Protection Plus benefit is either
added to the death benefit payment or to the account value if Successor
owner/annuitant is elected. If the surviving spouse elects to continue the
contract, the benefit will be based on the age of the surviving spouse as of
the date of the non-surviving spouse's death for the remainder of the contract.
If the surviving spouse is age 76 or older, the benefit will terminate and the
charge will no longer be in effect. See "Spousal protection" in "Payment of
death benefit" later in this Prospectus for more information.
Protection Plus must be elected when the contract is first issued; neither the
owner nor the successor owner/annuitant can add it subsequently. Ask your
financial professional or see Appendix VII later in this Prospectus to see if
this feature is available in your state.
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, with a signed letter of instruction electing this right, to our
processing office within 10 days after you receive it. If state law requires,
this "free look" period may be longer. Other state variations may apply.
Generally, your refund will equal your account value under the contract on the
day we receive notification to cancel the contract and will reflect (i) any
investment gain or loss in the variable investment options (less the daily
charges we deduct), (ii) any guaranteed interest
32 Contract features and benefits
in the guaranteed interest option, and (iii) any positive or negative market
value adjustments in the fixed maturity options through the date we receive
your contract. Some states require that we refund the full amount of your
contribution (not reflecting (i), (ii) or (iii) above). For any IRA contracts
returned to us within seven days after you receive it, we are required to
refund the full amount of your contribution. Please note that you will forfeit
the credit by exercising this right of cancellation.
We may require that you wait six months before you may 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 and in the SAI for
possible consequences of cancelling your contract.
In addition to the cancellation right described above, if you fully convert an
existing traditional IRA contract to a Roth Conversion IRA contract, you may
cancel your Roth Conversion IRA contract and return to a Rollover IRA contract.
Our processing office or your financial professional can provide you with the
cancellation instructions.
Contract features and benefits 33
2. Determining your contract's value
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YOUR ACCOUNT VALUE AND CASH VALUE
Your "account value" is the total value of the values you have in: (i) the
variable investment options; (ii) the guaranteed interest account; (iii) market
adjusted amounts in the fixed maturity options; and (iv) the loan reserve
account (applies for Rollover TSA contracts only).
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) the
total amount or a pro rata portion of the annual administrative charge as well
as any optional benefit charges; (ii) any applicable withdrawal charge; and
(iii) the amount of any outstanding loan plus accrued interest (applicable to
Rollover TSA contracts only). Please see "Surrendering 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.
The unit value for each variable investment option depends on the investment
performance of that option, less daily charges for:
(i) mortality and expense risks;
(ii) administrative, and
(iii) distribution charges.
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 plus the credit;
(ii) decreased to reflect a withdrawal (plus applicable withdrawal charges);
(iii) increased to reflect transfer into, or decreased to reflect transfer
out of a variable investment option; or
(iv) increased or decreased to reflect a transfer of your loan amount from
or to the loan reserve account under a Rollover TSA contract.
In addition, when we deduct the enhanced death benefit, guaranteed minimum
income benefit, GPB Option 2, and/or Protection Plus benefit charges, the
number of units credited to your contract will be reduced. Your units are also
reduced when we deduct the annual administrative charge. 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 account at any time will equal: your
contributions and transfers to that option, plus interest, minus withdrawals
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, which reflects withdrawals out of
the option and charges we deduct. 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, provided there have been
no withdrawals or transfers.
TERMINATION OF YOUR CONTRACT
Your contract will terminate without value if your account value is
insufficient to pay any applicable charges when due. Your account value could
become insufficient due to withdrawals and/or poor market performance. Upon
such termination, you will lose any applicable guaranteed benefits.
See Appendix VII later in this Prospectus for any state variations with regard
to terminating your contract.
34 Determining your contract's value
3. Transferring your money among investment options
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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 variable investment options,
subject to the following:
o You may not transfer to a fixed maturity option that has a rate to maturity
of 3% or less.
o If the annuitant is age 76-80, you must limit your transfers to fixed
maturity options with maturities of seven years or less. If the annuitant
is age 81 or older, you must limit your transfers to fixed maturity
options of five years or less. As of February 13, 2004, maturities of less
than eight years were not available. Also, the maturity dates may be no
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 and affect
your GPB.
o During the first contract year, transfers into the guaranteed interest option
are not permitted.
o After the first contract year, a transfer into the guaranteed interest option
will not be permitted if such transfer would result in more than 25% of
the annuity account value being allocated to the guaranteed interest
option, based on the annuity account value as of the previous business
day.
o No transfers are permitted into the Special 10 year fixed maturity option.
In addition, we reserve the right to restrict transfers among variable
investment options as described in your contract, including limitations on the
number, frequency or dollar amount of transfers.
The maximum amount that may be transferred from the guaranteed interest option
to any investment option (including amounts transferred pursuant to the
fixed-dollar option and interest sweep option dollar cost averaging programs
described under "Allocating your contributions" in "Contract features and
benefits" earlier in this Prospectus) in any contract year is the greatest of:
(a) 25% of the amount you have in the guaranteed interest option on the last
day of the prior contract year; or,
(b) the total of all amounts transferred at your request from the guaranteed
interest option to any of the Investment options in the prior contract
year; or,
(c) 25% of amounts transferred or allocated to the guaranteed interest option
during the current contract year.
From time to time, we may remove the restrictions regarding transferring
amounts out of the guaranteed interest option. If we do so, we will tell you.
We will also tell you at least 45 days in advance of the day we intend to
reimpose the transfer restrictions. When we reimpose the transfer restrictions,
if any dollar cost averaging transfer out of the guaranteed interest option
causes a violation of the 25% outbound restriction, that dollar cost averaging
program will be terminated for the current contract year. A new dollar cost
averaging program can be started in the next or subsequent contract years.
You may request a transfer in writing, by telephone using TOPS or through
EQAccess. You must send in all written transfer requests directly to our
processing office. Transfer requests should specify:
(1) the contract number,
(2) the dollar amounts or percentages of your current account value 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 Accumulator(R) Plus(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.
Frequent transfers, including market timing and other program trading
strategies, may be disruptive to the underlying portfolios in which the
variable investment options invest. Disruptive transfer activity may hurt the
long term performance of a portfolio by, for example, requiring it to maintain
larger amounts of cash or to liquidate portfolio holdings at a disadvantageous
time or price. We currently use the procedures described below to discourage
disruptive transfer activity in AXA Premier VIP Trust and EQ Advisors Trust.
You should understand, however, that these procedures are subject to the
following limitations: (1) they do not eliminate the possibility that
disruptive transfer activity, including market timing, will occur or that
portfolio performance will be affected by such activity; (2) the design of
these procedures involves inherently subjective judgments, which we and AXA
Premier VIP Trust and EQ Advisors Trust seek to make in a fair and reasonable
manner consistent with interests of all policy and contract owners. Certain
frequent transfer activities attempt to exploit inefficiencies in how portfolio
securities are valued. Please see the prospectuses for the underlying
portfolios for more information on how portfolio shares are priced.
If we determine that your transfer patterns are disruptive, 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. 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.
Transferring your money among investment options 35
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 reduce disruptive activity, we
monitor the frequency of transfers, including the size of transfers in relation
to portfolio assets, in each underlying portfolio. When a potentially
disruptive transfer into or out of a portfolio occurs on a day when the
portfolio's aggregate deposits or aggregate redemptions exceed our monitoring
threshold, we may take the actions described above to restrict availability of
voice, fax and automated transaction services. We currently apply such action
for the remaining life of each affected contract. We also currently provide a
letter to owners who have engaged in disruptive transfer activity of our
intention to restrict access to communication 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 potentially disruptive transfer
activity and our monitoring procedures and thresholds, as well as change our
procedures to restrict this activity.
Our ability to monitor potentially disruptive transfer activity is limited in
certain circumstances. Group annuity contracts may be owned by retirement plans
on whose behalf we provide transfer instructions on an omnibus (aggregate)
basis, which may mask the disruptive transfer activity of individual plan
participants, and/or interfere with our ability to restrict communication
services. Also, underlying portfolios that are not in AXA Premier VIP Trust or
EQ Advisors Trust may be available for investment through companies that may
have policies and procedures regarding disruptive transfer activity that are
different from ours. Please see the prospectuses for those underlying
portfolios for more information.
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 on a contract year basis)
Rebalancing will occur on the same day of the month as the contract date. If a
contract is established after the 28th, rebalancing will occur on the first
business day of the month following the contract issue date.
While your rebalancing program is in effect, we will transfer amounts among the
variable investment options 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 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. 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; your rebalancing allocations will not be changed, and
the rebalancing program will remain in effect unless you request that it be
canceled in writing. There is no charge for the rebalancing feature.
You may not elect the rebalancing program if you are participating in any
dollar cost averaging program. Rebalancing is not available for amounts you
have allocated to the guaranteed interest option or the fixed maturity options.
36 Transferring your money among investment options
4. Accessing your money
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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. If you withdraw more than 90% of a
contract's current cash value, we will treat it as a request to surrender the
contract for its cash value. In addition, we have the right to pay the cash
value and terminate this contract if no contributions are made during the last
three completed contract years, and the account value is less than $500, or if
you make a withdrawal that would result in a cash value of less than $500. See
"Surrendering your contract to receive its cash value" below. For the tax
consequences of withdrawals, see "Tax information" later in this Prospectus and
in the SAI.
Please see "Termination of your contract" in "Determining your contract value"
earlier in this Prospectus and "How withdrawals (and transfers out of the
Special 10 year fixed maturity option) affect your Guaranteed minimum income
benefit, Guaranteed minimum death benefit and Guaranteed principal benefit
option 2," below for more information on how withdrawals affect your guaranteed
benefits and could potentially cause your contract to terminate.
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Method of withdrawal
------------------------------------------------------------
Lifetime
required
Substantially minimum
Contract Lump sum Systematic equal distribution
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NQ Yes Yes No No
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Rollover IRA Yes Yes Yes Yes
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Roth Con-
version IRA Yes Yes Yes No
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Rollover
TSA* Yes Yes No Yes
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QP Yes No No Yes
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* For some Rollover TSA contracts, your ability to take withdrawals, loans or
surrender your contract may be limited. You must provide withdrawal
restriction information when you apply for a contract. See "Tax Sheltered
Annuity contracts (TSAs)" in "Tax information" later in this Prospectus and
in the SAI.
LUMP SUM WITHDRAWALS
(All contracts)
You may take lump sum withdrawals from your account value at any time.
(Rollover TSA contracts may have restrictions). The minimum amount you may
withdraw is $300.
Lump sum withdrawals will be subject to a withdrawal charge if they exceed the
10% free withdrawal amount (see "10% free withdrawal amount" in "Charges and
expenses" later in this Prospectus). Under Rollover TSA contracts, if a loan is
outstanding, you may only take lump sum withdrawals as long as the cash value
remaining after any withdrawal equals at least 10% of the outstanding loan plus
accrued interest.
SYSTEMATIC WITHDRAWALS
(NQ, Rollover TSA, Rollover IRA and Roth Conversion IRA contracts only)
You may take systematic withdrawals of a particular dollar amount or a
particular percentage of your account value. (Rollover TSA contracts may have
restrictions).
You may take systematic withdrawals on a monthly, quarterly or annual basis as
long as the withdrawals do not exceed the following percentages of your account
value: 0.8% monthly, 2.4% quarterly and 10.0% annually. The minimum amount you
may take in each systematic withdrawal is $250. If the amount withdrawn would
be less than $250 on the date a withdrawal is to be taken, we will not make a
payment and we will terminate your systematic withdrawal election.
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, we
will make the withdrawals on the same calendar day of the month as the contract
date. You must wait at least 28 days after your contract is issued before your
systematic withdrawals can begin.
You may elect to take systematic withdrawals at any time. If you own an IRA
contract, you may elect this withdrawal method only if you are between ages
59-1/2 and 70-1/2.
You may change the payment frequency, or the amount or percentage of your
systematic withdrawals, once each contract year. However, you may not change
the amount or percentage in any contract year in which you have already taken a
lump sum withdrawal. You can cancel the systematic withdrawal option at any
time.
Systematic withdrawals are not subject to a withdrawal charge, except to the
extent that, when added to a lump sum withdrawal previously taken in the same
contract year, the systematic withdrawal exceeds the 10% free withdrawal
amount. This option is not available if you have elected a guaranteed principal
benefit.
SUBSTANTIALLY EQUAL WITHDRAWALS
(Rollover IRA and Roth Conversion IRA contracts only)
We offer our "substantially equal withdrawals option" to allow you to receive
distributions from your account value without triggering the 10% additional
federal income tax penalty, which normally applies to distributions made before
age 59-1/2. See "Tax information" later in this Prospectus and in the SAI. We
use one of the IRS-approved methods for doing this; this is not the exclusive
method of meeting this exception. After consultation with your tax adviser, you
may decide to use another method which would require you to compute amounts
yourself and request lump sum withdrawals. In such a case, a withdrawal charge
may apply. Once you begin to take substantially equal withdrawals, you should
not stop them or change the pattern of your withdrawals until after the later
of age 59-1/2 or five full years after the first withdrawal. If you stop or
change the withdrawals or take a lump sum withdrawal, you may be liable for the
10% federal tax penalty
Accessing your money 37
that would have otherwise been due on prior withdrawals made under this option
and for any interest on the delayed payment of the penalty.
In accordance with IRS guidance, an individual who has elected to receive
substantially equal withdrawals may change, without penalty, from one of the
IRS-approved methods of calculating fixed payments to another IRS-approved
method (similar to the required minimum distribution rules) of calculating
payments which vary each year.
You may elect to take substantially equal withdrawals at any time before age
59-1/2. 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. You may not elect to
receive the first payment in the same contract year in which you took a lump
sum withdrawal. We will calculate the amount of your substantially equal
withdrawals using the IRS-approved method we offer. The payments will be made
monthly, quarterly or annually as you select. These payments will continue
until we receive written notice from you to cancel this option or you take a
lump sum withdrawal. You may elect to start receiving substantially equal
withdrawals again, but the payments may not restart in the same contract year
in which you took a lump sum withdrawal. We will calculate the new withdrawal
amount.
Substantially equal withdrawals that we calculate for you are not subject to a
withdrawal charge. This option is not available if you have elected a
guaranteed principal benefit.
LIFETIME REQUIRED MINIMUM DISTRIBUTION WITHDRAWALS
(Rollover IRA and Rollover TSA and QP contracts only -- See "Tax information"
later in this Prospectus and in the SAI)
We offer our "automatic required minimum distribution (RMD) service" to help
you meet lifetime required minimum distributions under federal income tax
rules. This is not the exclusive way for you to meet these rules. After
consultation with your tax adviser, you may decide to compute required minimum
distributions yourself and request lump sum withdrawals. In such a case, a
withdrawal charge may apply.
You may elect this service in the year in which you reach age 70-1/2 or in any
later year. The minimum amount we will pay out is $250. Currently, minimum
distribution withdrawal payments will be made annually. See "Required minimum
distributions" in "Tax information" later in this Prospectus and in the SAI for
your specific type of retirement arrangement.
We do not impose a withdrawal charge on minimum distribution withdrawals if you
are enrolled in our automatic RMD service except if, when added to a lump sum
withdrawal previously taken in the same contract year, the minimum distribution
withdrawal exceeds the 10% free withdrawal amount.
Under Rollover TSA contracts, you may not elect our automatic RMD service if a
loan is outstanding.
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For Rollover IRA and Rollover TSA contracts, 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).
- --------------------------------------------------------------------------------
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 and the guaranteed
interest account. If there is insufficient value or no value in the variable
investment options and the guaranteed interest account, any additional amount
of the withdrawal required or the total amount of the withdrawal will be
withdrawn from the fixed maturity options (other than the Special 10 year fixed
maturity option) in the order of the earliest maturity date(s) first. If such
amounts are still insufficient, we will deduct any remaining portion from the
Special 10 year fixed maturity option. A market value adjustment will apply to
withdrawals from the fixed maturity options (including the Special 10 year
fixed maturity option).
HOW WITHDRAWALS (AND TRANSFERS OUT OF THE SPECIAL 10 YEAR FIXED MATURITY
OPTION) AFFECT YOUR GUARANTEED MINIMUM INCOME BENEFIT, GUARANTEED MINIMUM DEATH
BENEFIT AND GUARANTEED PRINCIPAL BENEFIT OPTION 2
In general, withdrawals will reduce your guaranteed benefits 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
benefit by the 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
benefit was $40,000 before the withdrawal, it would be reduced by $16,000
($40,000 X .40) and your new benefit after the withdrawal would be $24,000
($40,000-$16,000).
Transfers out of the Special 10 year fixed maturity option will reduce GPB
Option 2 on a pro rata basis. In addition, if you make a contract withdrawal
from the Special 10 year fixed maturity option, we will reduce your GPB Option
2 in a similar manner; however, the reduction will reflect both a transfer out
of the Special 10 year fixed maturity option and a withdrawal from the
contract. Therefore, the reduction in GPB Option 2 is greater when you take a
contract withdrawal from the Special 10 year fixed maturity option than it
would be if you took the withdrawal from another investment option.
Similar to the example above, if your account value is $30,000 and you withdraw
$12,000 from the Special 10 year fixed maturity option, you have withdrawn 40%
of your account value. If your GPB Option 2 benefit was $40,000 before the
withdrawal, the reduction to reflect the transfer out of the Special 10 year
fixed maturity option would equal $16,000 ($40,000 x .40). The amount used to
calculate the reduction to reflect the withdrawal from the contract is $24,000
($40,000 - $16,000). The reduction to reflect the withdrawal would equal $9,600
($24,000 x .40), and your new benefit after the withdrawal would be $14,400
($24,000 - $9,600).
With respect to the Guaranteed minimum income benefit and the greater of 6%
Roll up to age 85 or the Annual Ratchet to age 85 enhanced death benefit,
withdrawals will reduce each of the benefits' 6% Roll up to age 85 benefit base
on a dollar-for-dollar basis, as long as the sum of withdrawals in a contract
year is 6% or less of the 6% Roll up benefit base on the most recent contract
date anniversary. Once a withdrawal is taken that causes the sum of withdrawals
in a contract year to exceed 6% of the benefit base on the most recent
anniversary, that entire withdrawal and any subsequent withdrawals in that same
contract year will reduce the benefit base pro rata. Reduc-
38 Accessing your money
tion on a dollar-for-dollar basis means that your 6% Roll up to age 85 benefit
base will be reduced by the dollar amount of the withdrawal for each Guaranteed
benefit. The Annual Ratchet to age 85 benefit base will always be reduced on a
pro rata basis.
LOANS UNDER ROLLOVER TSA CONTRACTS
You may take loans from a Rollover TSA unless restricted by the employer who
provided the Rollover TSA funds. If you cannot take a loan, or cannot take a
loan without approval from the employer who provided the funds, we will have
this information in our records based on what you and the employer who provided
the funds told us when you purchased your contract. The employer must also tell
us whether special employer plan rules of the Employee Retirement Income
Security Act of 1974 ("ERISA") apply. We will not permit you to take a loan
while you are enrolled in our "automatic required minimum distribution (RMD)
service."
You should read the terms and conditions on our loan request form carefully
before taking out a loan. Under Rollover TSA contracts subjected to ERISA, you
may only take a loan with the written consent of your spouse. Your contract
contains further details of the loan provision. Please see Appendix VII later
in this Prospectus for any state restrictions you may be subject to if you take
a loan from a Rollover TSA contract. Also, see "Tax information" later in this
Prospectus and in the SAI, for general rules applicable to loans.
We will permit you to have only one loan outstanding at a time. The minimum
loan amount is $1,000. The maximum amount is $50,000 or, if less, 50% of your
account value, subject to any limits under the federal income tax rules. The
term of the loan is five years. However, if you use the loan to acquire your
primary residence, the term is 10 years. The term may not extend beyond the
earliest of:
(1) the date annuity payments begin,
(2) the date the contract terminates, and
(3) the date a death benefit is paid (the outstanding loan will be deducted
from the death benefit amounts).
A loan request under your Rollover TSA contract will be processed on the first
business day of the month following the date on which the properly completed
loan request form is received. Interest will accrue daily on your outstanding
loan at a rate we set. The loan interest rate will be equal to the Moody's
Corporate Bond Yield Averages for Baa bonds for the calendar month ending two
months before the first day of the calendar quarter in which the rate is
determined.
LOAN RESERVE ACCOUNT
On the date your loan is processed, we will transfer the amount of your loan to
the loan reserve account. Unless you specify otherwise, we will subtract your
loan on a pro rata basis from your value in the variable investment options and
the guaranteed interest option. If these amounts are insufficient, any
additional amount of the loan will be subtracted from the fixed maturity
options (other than the Special 10 year fixed maturity option) in the order of
the earliest maturity date(s) first. If such amounts are still insufficient, we
will deduct any remaining portion from the Special 10 year fixed maturity
option. A market value adjustment will apply to withdrawals from the fixed
maturity options (including the Special 10 year fixed maturity option). If the
amounts are withdrawn from the Special 10 year fixed maturity option, the
guaranteed benefit will be adversely affected. See "Guaranteed principal
benefit option 2" in "Contract features and benefits" earlier in this
Prospectus.
We will credit interest to the amount in the loan reserve account at a rate of
2% lower than the loan interest rate that applies for the time your loan is
outstanding. On each contract date anniversary after the date the loan is
processed, we will transfer the amount of interest earned in the loan reserve
account to the variable investment options on a pro rata basis. When you make a
loan repayment, unless you specify otherwise, we will transfer the dollar
amount of the loan repaid from the loan reserve account to the investment
options according to the allocation percentages we have on our records. Loan
repayments are not considered contributions and therefore are not eligible for
additional credits.
SURRENDERING 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. (Rollover
TSA contracts may have restrictions). 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.
For the tax consequences of surrenders, see "Tax information" later in this
Prospectus and in the SAI.
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, payment of a death benefit, payment of any amount you
withdraw (less any withdrawal charge) and, upon surrender, 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 value in the guaranteed interest
account and 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 10 days) while we are waiting for a contribution
check to clear.
Accessing your money 39
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
Equitable Accumulator(R) Plus(SM) offers you several choices of annuity payout
options. Some enable you to receive fixed annuity payments which can be either
level or increasing, 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. In addition, if you are exercising your Guaranteed minimum
income benefit, your choice of payout options are those that are available
under the Guaranteed minimum income benefit (see "Our Guaranteed minimum income
benefit option" in "Contract features and benefits" earlier in this
Prospectus).
- -------------------------------------------------------------------------------
Fixed annuity payout options Life annuity
Life annuity with period
certain
Life annuity with refund
certain
Period certain annuity
- -------------------------------------------------------------------------------
Variable Immediate Annuity Life annuity (not available
payout options in New York)
Life annuity with period
certain
- -------------------------------------------------------------------------------
Income Manager payout Life annuity with period
options (available for annuitants certain
age 83 or less at contract issue) Period certain annuity
- -------------------------------------------------------------------------------
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. 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.
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 guaranteed 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 you with details.
FIXED ANNUITY PAYOUT OPTIONS
With fixed annuities, we guarantee fixed annuity payments will be based either
on the tables of guaranteed annuity purchase factors in your contract or on our
then current annuity purchase factors, 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 Immediate Annuities may be funded through your choice of available
variable investment options investing in portfolios of the EQ Advisers Trust
and AXA Premier VIP Trust. The contract also offers a fixed income annuity
payout option that can be elected in combination with the variable annuity
payout option. The amount of each variable income 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.
INCOME MANAGER PAYOUT OPTIONS
The Income Manager payout annuity contracts differ from the other payout
annuity contracts. The other payout annuity contracts may provide higher or
lower income levels, but do not have all the features of the Income Manager
payout annuity contract. You may request an illustration of the Income Manager
payout annuity contract from your financial professional. Income Manager payout
options are described in a separate prospectus that is available from your
financial professional. Before you select an Income Manager payout option, you
should read the prospectus which contains important information that you should
know.
Both NQ and IRA Income Manager payout options provide guaranteed level
payments. The Income Manager (life annuity with period certain) also provides
guaranteed increasing payments (NQ contracts only). You may not elect an Income
Manager payout option without life contingencies unless withdrawal charges are
no longer in effect under your Equitable Accumulator(R) Plus(SM).
For QP and Rollover TSA contracts, if you want to elect an Income Manager
payout option, we will first roll over amounts in such contract to a Rollover
IRA contract with the plan participant as owner.
40 Accessing your money
You may choose to apply your account value of your Equitable Accumulator(R)
Plus(SM) contract to an Income Manager payout annuity. In this case, we will
consider any amounts applied as a withdrawal from your Equitable Accumulator(R)
Plus(SM). For the tax consequences of withdrawals, see "Tax information" later
in this Prospectus and in the SAI.
Depending upon your circumstances, an Income Manager contract may be purchased
on a tax-free basis. Please consult you tax adviser. The Income Manager payout
options are not available in all states.
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.
For the fixed annuity payout options and Variable Immediate 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 under
your Equitable Accumulator(R) Plus(SM) is imposed if you select a period
certain. If the period certain is more than 5 years, then the withdrawal charge
deducted will not exceed 5% of the account value.
For the Income Manager payout life contingent options, no withdrawal charge is
imposed under the Equitable Accumulator(R) Plus(SM). If the withdrawal charge
that otherwise would have been applied to your account value under your
Equitable Accumulator(R) Plus(SM) is greater than 2% of the contributions that
remain in your contract at the time you purchase your payout option, the
withdrawal charges under the Income Manager will apply. The year in which your
account value is applied to the payout option will be "contract year 1."
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. The contract owner and annuitant
must meet the issue age and payment requirements.
You can choose the date annuity payments begin from the Accumulator(R) Plus(SM)
contract. The date annuity payments begin may not be earlier than five years
(or one year, in a limited number of jurisdictions) from the contract date.
Please see Appendix VII later in this Prospectus for information on state
variations. Except with respect to Income Manager annuity payout options, where
payments are made on the 15th day of each month, 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 annuity maturity date described below.
If you start receiving annuity payments within three years of making any
contribution, we will recover the credit that applies to any contribution made
within the prior three years. Please see Appendix VII later in this Prospectus
for information on state variations.
The amount of the annuity payments will depend on the amount applied to
purchase the annuity and the applicable annuity purchase factors, discussed
earlier. Your financial professional can provide you with additional
information about your annuity payment options.
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.
ANNUITY MATURITY DATE
Your contract has a maturity date by which you must either take a lump sum
withdrawal or select an annuity payout option. The maturity date is generally
the contract date anniversary that follows the annuitant's 95th birthday. For
contracts issued in New York, the maturity date is the contract date that
follows the annuitant's 90th birthday.
Please see Appendix VII later in this Prospectus for more detailed information
on the annuity maturity date in New York and Pennsylvania.
Before the last day 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: (i) transfers (if permitted in
the future) among the variable investment options if a Variable Immediate
Annuity payout option is selected; and (ii) withdrawals or contract surrender
(subject to a market value adjustment) if an Income Manager annuity payout
option is chosen.
Accessing your money 41
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 An administrative charge
o A distribution charge
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 each contract date anniversary -- an annual administrative charge, if
applicable.
o At the time you make certain withdrawals or surrender your contract -- a
withdrawal charge.
o On each contract date anniversary -- a charge if you elect a death benefit
(other than the Standard death benefit).
o On each contract date anniversary -- a charge for the Guaranteed minimum
income benefit, if you elect this optional benefit.
o On each contract date anniversary -- a charge for Protection Plus, if you
elect this optional benefit.
o On the first 10 contract date anniversaries -- a charge for GPB Option 2, if
you elect this optional 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.
The charges under the contracts are designed to cover, in the aggregate, our
direct and indirect costs of selling, administering and providing benefits
under the contracts. They are also designed, in the aggregate, to compensate us
for the risks of loss we assume pursuant to the contracts. If, as we expect,
the charges that we collect from the contracts exceed our total costs in
connection with the contracts, we will earn a profit. Otherwise, we will incur
a loss.
The rates of certain of our charges have been set with reference to estimates
of the amount of specific types of expenses or risks that we will incur. In
most cases, this Prospectus identifies such expenses or risks in the name of
the charge; however, the fact that any charge bears the name of, or is designed
primarily to defray, a particular expense or risk does not mean that the amount
we collect from that charge will never be more than the amount of such expense
or risk. Nor does it mean that we may not also be compensated for such expense
or risk out of any other charges we are permitted to deduct by the terms of the
policies.
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.
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 Standard death
benefit. The daily charge is equivalent to an annual rate of 0.90% 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 income 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. Lastly,
we assume a mortality risk to the extent that at the time of death, the
Guaranteed minimum 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. A portion of this charge also
compensates us for the contract credit. For a discussion of the credit, see
"Credits" in "Contract features and benefits" earlier in this Prospectus. We
expect to make a profit from this charge.
ADMINISTRATIVE CHARGE
We deduct a daily charge from the net assets in each variable investment option
to compensate us for administrative expenses under the contracts. The daily
charge is equivalent to an annual rate of 0.35% of the net assets in each
variable investment option.
DISTRIBUTION CHARGE
We deduct a daily charge from the net assets in each variable investment option
to compensate us for a portion of our sales expenses under the contracts. The
daily charge is equivalent to an annual rate of 0.25% of the net assets in each
variable investment option.
ANNUAL ADMINISTRATIVE CHARGE
We deduct an administrative charge from your account value on each contract
date anniversary. We deduct the charge if your account value on the last
business day of the contract year is less than $50,000. If your account value
on such date is $50,000 or more, we do not deduct the charge. During the first
two contract years, the charge is equal to $30 or, if less, 2% of your account
value. The charge is $30 for contract years three and later.
42 Charges and expenses
We will deduct this charge from your value in the variable investment options
and the guaranteed interest option (see Appendix VII later in this Prospectus
to see if deducting this charge from the guaranteed interest option is
permitted in your state) on a pro rata basis. If those amounts are
insufficient, we will deduct all or a portion of the charge from the fixed
maturity options (other than the Special 10 year fixed maturity option) in the
order of the earliest maturity date(s) first. If such amounts are still
insufficient, we will deduct any remaining portion from the Special 10 year
fixed maturity option. If the contract is surrendered or annuitized or a death
benefit is paid, we will deduct a pro rata portion of the charge for that year.
A market value adjustment will apply to deductions from the fixed maturity
options (including the Special 10 year fixed maturity option).
If your account value is insufficient to pay this charge, your contract will
terminate without value and you will lose any applicable guaranteed benefits.
Please see "Termination of your contract" in "Determining your contract value"
earlier in this Prospectus.
WITHDRAWAL CHARGE
A withdrawal charge applies in two circumstances: (1) if you make one or more
withdrawals during a contract year that, in total, exceed the 10% free
withdrawal amount, described below, or (2) if you surrender your contract to
receive its cash value or apply your cash value to a non life contingent
annuity payout option. A portion of this charge also compensates us for the
contract credit. For a discussion of the credit, see "Credits" in "Contracts
features and benefits" earlier in this Prospectus. We expect to make a profit
from this charge.
The withdrawal charge equals a percentage of the contributions withdrawn. We do
not consider credits to be contributions. Therefore, there is no withdrawal
charge associated with a credit.
The percentage of the withdrawal charge that applies to each contribution
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 9+
- -------------------------------------------------------------------------------
Percentage of
contribution 8% 8% 7% 7% 6% 5% 4% 3% 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 withdrawals 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 your contract as withdrawn first. See "Tax
information" later in this Prospectus and in the SAI.
In order to give you the exact dollar amount of the withdrawal you request, we
deduct the amount of the withdrawal and the withdrawal charge from your account
value. Any amount deducted to pay withdrawal charges is also subject to the
same withdrawal charge percentage. We deduct the charge in proportion to the
amount of the withdrawal subtracted from each variable investment option. The
withdrawal charge helps cover our sales expenses.
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 beginning of each contract
year, or in the case of the first contract year, your initial contribution,
minus any other withdrawals made during the contract year. The 10% free
withdrawal amount does not apply if you surrender your contract except where
required by law.
CERTAIN WITHDRAWALS. If you elected the Guaranteed minimum income benefit
and/or the Greater of 6% roll up to age 85 or the annual ratchet to age 85
enhanced death benefit, the withdrawal charge will be waived for any withdrawal
that, together with any prior withdrawals made during the contract year, does
not exceed 6% of the beginning of contract year rollup portion of the related
benefit bases. If your withdrawal exceeds the amount described above, this
waiver is not applicable to that withdrawal, or to any subsequent withdrawal
for the life of the contract.
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, or U.S. Virgin Islands) 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, if the conditions as described in (i), (ii)
or (iii) above existed at the time a contribution was remitted or if the
condition that began within 12 months of the period following remittance. Some
states may not permit us to waive the
Charges and expenses 43
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.
GUARANTEED MINIMUM DEATH BENEFIT CHARGE
ANNUAL RATCHET TO AGE 85. If you elect the Annual Ratchet to age 85 enhanced
death benefit, we deduct a charge annually from your account value on each
contract date anniversary for which it is in effect. The charge is equal to
0.25% of the Annual Ratchet to age 85 benefit base.
GREATER OF 6% ROLL UP TO AGE 85 OR ANNUAL RATCHET TO AGE 85. If you elect this
enhanced death benefit, we deduct a charge annually from your account value on
each contract date anniversary for which it is in effect. The charge is equal
to 0.60% of the greater of the 6% Roll up to age 85 or the Annual Ratchet to
age 85 benefit base.
We will deduct this charge from your value in the variable investment options
and the guaranteed interest option (see Appendix VII later in this Prospectus
to see if deducting this charge from the guaranteed interest account is
permitted in your state) on a pro rata basis. If those amount are insufficient,
we will deduct all or a portion of the charge from the fixed maturity options
(other than the Special 10 year fixed maturity option) in the order of the
earliest maturity date(s) first. If such amounts are still insufficient, we
will deduct any remaining portion from the Special 10 year fixed maturity
option. If the contract is surrendered or annuitized or a death benefit is
paid, we will deduct a pro rata portion of the charge for that year. A market
value adjustment will apply to deductions from the fixed maturity options
(including the Special 10 year fixed maturity option).
If your account value is insufficient to pay this charge, your contract will
terminate without value and you will lose any applicable guaranteed benefits.
Please see "Termination of your contract" in "Determining your contract value"
earlier in this Prospectus.
There is no additional charge for the standard death benefit.
GUARANTEED PRINCIPAL BENEFIT OPTION 2
If you purchase GPB Option 2, we deduct a charge annually from your account
value on the first 10 contract date anniversaries. The charge is equal 0.50% of
the account value. We will deduct this charge from your value in the variable
investment options and the guaranteed interest option (see Appendix VII later
in this Prospectus to see if deducting this charge from the guaranteed interest
option is permitted in your state) on a pro rata basis. If these amounts are
insufficient, we will deduct any remaining portion of the charge from amounts
in any fixed maturity options (other than the Special 10 year fixed maturity
option) in the order of the earliest maturity date(s) first. If such amounts
are still insufficient, we will deduct any remaining portion from the Special
10 year fixed maturity option. If the contract is surrendered or annuitized or
a death benefit is paid, we will deduct a pro rata portion of the charge for
that year. A market value adjustment will apply to deductions from the fixed
maturity options (including the Special 10 year fixed maturity option).
GUARANTEED MINIMUM INCOME BENEFIT CHARGE
If you elect the Guaranteed minimum income benefit, we deduct a charge annually
from your account value on each contract date anniversary until such time as
you exercise the Guaranteed minimum income benefit, elect another annuity
payout option or the contract date anniversary after the annuitant reaches age
85, whichever occurs first. The charge is equal to 0.65% of the applicable
benefit base in effect on the contract date anniversary.
We will deduct this charge from your value in the variable investment options
and the guaranteed interest option (see Appendix VII later in this Prospectus
to see if deducting this charge from the guaranteed interest option is
permitted in your state) on a pro rata basis. If those amounts are still
insufficient, we will deduct all or a portion of the charge from the fixed
maturity options in the order of the earliest maturity date(s) first. If the
contract is surrendered or annuitized or a death benefit is paid, we will
deduct a pro rata portion of the charge for that year. A market value
adjustment will apply to deductions from the fixed maturity options .
If your account value is insufficient to pay this charge, your contract will
terminate without value and you will lose any applicable guaranteed benefits.
Please see "Termination of your contract" in "Determining your contract value"
earlier in this Prospectus.
PROTECTION PLUS
If you elect Protection Plus, we deduct a charge annually from your account
value on each contract date anniversary for which it is in effect. The charge
is equal to 0.35% of the account value on each contract date anniversary. We
will deduct this charge from your value in the variable investment options and
the guaranteed interest option on a pro rata basis. If those amounts are
insufficient, we will deduct all or a portion of the charge from the fixed
maturity options (other than the Special 10 year fixed maturity option) in the
order of the earliest maturity date(s) first. If such amounts are still
insufficient, we will deduct any remaining portion from the Special 10 year
fixed maturity option. If the contract is surrendered or annuitized or a death
benefit is paid, we will deduct a pro rata portion of the charge for that year.
A market value adjustment will apply to deductions from the fixed maturity
options (including the Special 10 year fixed maturity option).
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 jurisdiction and ranges from 0% to 3.5%.
VARIABLE IMMEDIATE ANNUITY PAYOUT OPTION ADMINISTRATIVE FEE
We deduct a fee of $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:
44 Charges and expenses
o Management fees ranging from 0.10% to 1.50%.
o 12b-1 fees of either 0.25% or 0.35%.
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 prospectuses for the Trusts.
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 Guaranteed minimum income
benefit or the Guaranteed minimum death benefit, or offer variable investment
options that invest in shares of the Trusts that are not subject to the 12b-1
fee. If permitted under the terms of our exemptive order regarding
Accumulator(R) Plus(SM) bonus feature, we may also change the crediting
percentage that applies to contributions. 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
Rollover IRA and Roth Conversion 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 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.
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 would be
unfairly discriminatory.
Charges and expenses 45
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 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. You may be
limited as to the beneficiary you can designate in a Rollover TSA contract. In
a QP contract, the beneficiary must be the trustee. Where an NQ contract is
owned by a minor pursuant to the Uniform Gift to Minors Act or the Uniform
Transfers to Minors Act, the beneficiary must be the estate of the annuitant.
Where an IRA contract is owned in a custodial individual retirement account,
the custodian must be the beneficiary so that the custodian can reinvest or
distribute the death benefit as the beneficiary of the account desires.
The death benefit is equal to your account value (without adjustment for any
otherwise applicable negative market value adjustment) or, if greater, the
applicable Guaranteed minimum death benefit. We determine the amount of the
death benefit (other than the applicable Guaranteed minimum death benefit) and
any amount applicable under the Protection Plus feature, 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.
The amount of the applicable Guaranteed minimum death benefit will be such
Guaranteed minimum death benefit as of the date of the annuitant's death,
adjusted for any subsequent withdrawals. The death benefit will be less a
deduction for any outstanding loan plus accrued interest on the date that the
death benefit is made (applies to Rollover TSA only).
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, a
surviving spouse who is the sole primary beneficiary of the deceased
owner/annuitant can choose to be treated as the successor owner/annuitant and
continue the contract. The Successor owner/annuitant feature is only
available under NQ and individually-owned IRA contracts.
For NQ and 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.
When the owner is not the annuitant under an NQ contract and the owner dies
before annuity payments begin, the beneficiary named to receive the death
benefit upon the annuitant's death will become the successor owner. If you do
not want this beneficiary 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. The surviving
owner automatically takes the place of any other beneficiary designation.
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 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. An eligible successor owner,
including a surviving joint owner after the first owner dies, may elect the
beneficiary continuation option for NQ contracts discussed later under
"Beneficiary continuation option" below.
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.
SUCCESSOR OWNER AND ANNUITANT
If you are both the contract owner and the annuitant, and your spouse is the
sole primary beneficiary or the joint owner, then your spouse may
46 Payment of death benefit
elect to receive the death benefit or continue the contract as successor
owner/annuitant. The successor owner/annuitant must be 85 or younger as of the
date of the non-surviving spouse's death.
If your surviving spouse decides to continue the contract, then as of the date
we receive satisfactory proof of your death, any required instructions and
information, and forms necessary to effect the Successor owner/annuitant
feature, we will increase the account value to equal your elected Guaranteed
minimum death benefit as of the date of your death if such death benefit is
greater than your account value, plus any amount applicable under the
Protection Plus feature, and adjusted for any subsequent withdrawals. 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 considered to be withdrawn
only after all other amounts have been withdrawn.
We will determine whether your applicable Guaranteed minimum death benefit
option will continue as follows:
o If the successor owner/annuitant is age 75 or younger on the date of the
original owner/annuitant's death, and the original owner/annuitant was
age 84 or younger at death, the Guaranteed minimum death benefit continues
based upon the option that was elected by the original owner/annuitant and
will continue to grow according to its terms until the contract date
anniversary following the date the successor owner/annuitant reaches age
85.
o If the successor owner/annuitant is age 75 or younger on the date of the
original owner/annuitant's death, and the original owner/ annuitant was
age 85 or older at death, we will reinstate the Guaranteed minimum death
benefit that was elected by the original owner/annuitant. The benefit will
continue to grow according to its terms until the contract date anniversary
following the date the successor owner/annuitant reaches age 85.
o If the successor owner/annuitant is age 76 or over on the date of the
original owner/annuitant's death, the Guaranteed minimum death benefit
will no longer grow, and we will no longer charge for the benefit.
Where an NQ contract is owned by a Living Trust, as defined in the contract,
and at the time of the annuitant's death the annuitant's spouse is the sole
beneficiary of the Living Trust, the Trustee, as owner of the contract, may
request that the spouse be substituted as annuitant as of the date of the
annuitant's death. No further change of annuitant will be permitted.
Where an IRA contract is owned in a custodial individual retirement account,
and your spouse is the sole beneficiary of the account, the custodian may
request that the spouse be substituted as annuitant after your death.
For information on the operation of this feature with the Guaranteed minimum
income benefit, see "Exercise of Guaranteed minimum death benefit" under "Our
Guaranteed minimum income benefit option" in "Contract features and benefits,"
earlier in this Prospectus. For information on the operation of this feature
with Protection Plus, see "Protection Plus" in "Guaranteed minimum death
benefit" under "Contract features and benefits," earlier in this Prospectus.
SPOUSAL PROTECTION
SPOUSAL PROTECTION OPTION FOR NQ CONTRACTS ONLY. This feature permits spouses
who are joint contract owners to increase the account value to equal the
guaranteed minimum death benefit, if higher, and by the value of any Protection
Plus benefit, if elected, upon the death of either spouse. This account value
"step up" occurs even if the surviving spouse was the named annuitant. If you
and your spouse jointly own the contract and one of you is the named annuitant,
you may elect the Spousal protection option at the time you purchase your
contract at no additional charge. Both spouses must be between the ages of 20
and 70 at the time the contract is issued and must each be named the primary
beneficiary in the event of the other's death.
The annuitant's age is generally used for the purpose of determining contract
benefits. However, for the Annual Ratchet to age 85 and the Greater of 6% Roll
up to age 85 or Annual Ratchet to age 85 guaranteed minimum death benefits and
the Protection Plus benefit, the benefit is based on the older spouse's age.
The older spouse may or may not be the annuitant.
If the annuitant dies prior to annuitization, the surviving spouse may elect to
receive the death benefit, including the value of the Protection Plus benefit,
or, if eligible, continue the contract as the sole owner/ annuitant by
electing the successor owner/annuitant option. If the non-annuitant spouse dies
prior to annuitization, the surviving spouse continues the contract
automatically as the sole owner/annuitant. In either case, the contract would
continue, as follows:
o As of the date we receive due proof of the spouse's death, the account value
will be re-set to equal the Guaranteed minimum death benefit as of the
date of the non-surviving spouse's death, if higher, increased by the
value of the Protection Plus benefit.
o The Guaranteed minimum death benefit continues to be based on the older
spouse's age for the life of the contract, even if the younger spouse is
originally or becomes the sole owner/annuitant.
o The Protection Plus benefit will now be based on the surviving spouse's age
at the date of the non-surviving spouse's death for the remainder of the
life of the contract. If the benefit had been previously frozen because
the older spouse had attained age 80, it will be reinstated if the
surviving spouse is age 75 or younger. The benefit is then frozen on the
contract date anniversary after the surviving spouse reaches age 80. If
the surviving spouse is age 76 or older, the benefit will be discontinued
even if the surviving spouse is the older spouse (upon whose age the
benefit was originally based).
o If the annuitant dies first, withdrawal charges will no longer apply to any
contributions made prior to the annuitant's death. If the non-annuitant
spouse dies first, the withdrawal charge schedule remains in effect with
regard to all contributions.
We will not allow Spousal protection to be added after contract issue. If there
is a change in owner or primary beneficiary, the Spousal protection benefit
will be terminated. If you divorce, but do not change the owner or primary
beneficiary, Spousal protection continues.
Payment of death benefit 47
BENEFICIARY CONTINUATION OPTION
This feature permits a designated individual, on the contract owner's death, to
maintain a contract in the deceased contract owner's 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, Roth IRA and NQ contracts, subject to state availability. Please speak
with your financial professional or see Appendix VII later in this Prospectus
for further information.
BENEFICIARY CONTINUATION OPTION FOR TRADITIONAL IRA AND ROTH IRA CONTRACTS
ONLY. The beneficiary continuation option must be elected by September 30th of
the year following the calendar year of your death and before any other
inconsistent election is made. Beneficiaries who do not make a timely election
will not be eligible for this 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 applicable death
benefit, if such death benefit is greater than such account value, plus any
amount applicable under the Protection Plus feature, adjusted for any
subsequent withdrawals. Where an IRA contract is owned in a custodial
individual retirement account, the custodian may reinvest the death benefit in
an individual retirement annuity contract, using the account beneficiary as the
annuitant. Please speak with your financial professional for further
information.
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. For sole
spousal beneficiaries, payments may begin by December 31st of the calendar year
in which you would have reached age 70-1/2, if such time is later. For
traditional IRA contracts only, if you die before your Required Beginning Date
for Required Minimum Distributions, as discussed in the Statement of Additional
Information, the beneficiary may choose the "5-year rule" option instead of
annual payments over life expectancy. The 5-year rule is always available to
beneficiaries under Roth IRA contracts. If the beneficiary chooses this option,
the beneficiary may take withdrawals as desired, but the entire account value
must be fully withdrawn by December 31st of the calendar year which contains
the fifth anniversary of your death.
Under the beneficiary continuation option for IRA and Roth IRA contracts:
o The contract continues in your name for the benefit of your beneficiary.
o This feature is only available if the beneficiary is an individual. Certain
trusts with only individual beneficiaries will be treated as individuals
for this purpose.
o If there is more than one beneficiary, each beneficiary's share will be
separately accounted for. It will be distributed over the beneficiary's
own life expectancy, if payments over life expectancy are chosen.
o The minimum amount that is required in order to elect the beneficiary
continuation option is $5,000 for each beneficiary.
o The beneficiary may make transfers among the investment options but no
additional contributions will be permitted.
o If you had elected the Guaranteed minimum income benefit, an optional
enhanced death benefit or GPB Option 2 under the contract, they will no
longer be in effect and charges for such benefits will stop. Also, any
minimum death benefit feature 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, if any, will apply.
o 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 required 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.
BENEFICIARY CONTINUATION OPTION FOR NQ CONTRACT ONLY. This feature, also known
as the Inherited annuity, may only be elected when the NQ contract owner dies
before the annuity commencement date, whether or not the owner and the
annuitant are the same person. If the owner and annuitant are different and the
owner dies before the annuitant, for purposes of this discussion, "beneficiary"
refers to the successor owner. For a discussion of successor owner, see "When
an NQ contract owner dies before the annuitant" earlier in this section. This
feature must be elected within 9 months following the date of your death and
before any inconsistent election is made. Beneficiaries who do not make a
timely election will not be eligible for this option.
Generally, payments will be made once a year to the beneficiary over the
beneficiary's life expectancy, determined on a term certain basis and in the
year payments start. These payments must begin no later than one year after the
date of your death and are referred to as "scheduled payments." The beneficiary
may choose the "5-year rule" instead of scheduled payments over life
expectancy. If the beneficiary chooses the 5-year rule, there will be no
scheduled payments. Under the 5-year rule, the beneficiary may take withdrawals
as desired, but the entire account value must be fully withdrawn by the fifth
anniversary of your death.
Under the beneficiary continuation option for NQ contracts (regardless of
whether the owner and the annuitant are the same person):
o This feature is only available if the beneficiary is an individual. It is not
available for any entity such as a trust, even if all of the beneficiaries
of the trust are individuals.
o The contract continues in your name for the benefit of your beneficiary.
o If there is more than one beneficiary, each beneficiary's share will be
separately accounted for. It will be distributed over the respective
beneficiary's own life expectancy, if scheduled payments are chosen.
48 Payment of death benefit
o The minimum amount that is required in order to elect the beneficiary
continuation option is $5,000 for each beneficiary.
o The beneficiary may make transfers among the investment options but no
additional contributions will be permitted.
o If you had elected the Guaranteed minimum income benefit, an optional
enhanced death benefit or GPB Option 2 under the contract, they will no
longer be in effect and charges for such benefits will stop. Also, any
minimum death benefit feature will no longer be in effect.
o If the beneficiary chooses the "5-year rule," withdrawals may be made at any
time. If the beneficiary instead chooses scheduled payments, the
beneficiary must also choose between two potential withdrawal options at
the time of election. If the beneficiary chooses "Withdrawal Option 1",
the beneficiary cannot later withdraw funds in addition to the scheduled
payments the beneficiary is receiving; "Withdrawal Option 1" permits total
surrender only. "Withdrawal Option 2" permits the beneficiary to take
withdrawals, in addition to scheduled payments, at any time. However, the
scheduled payments under "Withdrawal Option 1" are afforded favorable tax
treatment as "annuity payments." See "Taxation of nonqualified annuities"
in "Tax Information" later in this Prospectus.
o Any partial withdrawals must be at least $300.
o Your beneficiary will have the right to name a beneficiary to receive any
remaining interest in the contract on the beneficiary's death.
o Upon the death of your beneficiary, the beneficiary he or she has named has
the option to either continue taking scheduled payments based on the
remaining life expectancy of the deceased beneficiary (if scheduled
payments were chosen) or to receive any remaining interest in the contract
in a lump sum. We will pay any remaining interest in the contract in a
lump sum if your beneficiary elects the 5-year rule. 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.
If you are both the owner and annuitant:
o 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 annuity account value to
equal the applicable death benefit if such death benefit is greater than
such account value, plus any amount applicable under the Protection Plus
feature, adjusted for any subsequent withdrawals.
o No withdrawal charges, if any, will apply to any withdrawals by the
beneficiary.
If the owner and annuitant are not the same person:
o If the beneficiary continuation option is elected, the beneficiary
automatically becomes the new annuitant of the contract, replacing the
existing annuitant.
o The annuity account value will not be reset to the death benefit amount.
o The contract's withdrawal charge schedule will continue to be applied to any
withdrawal or surrender other than scheduled payments; the contract's free
corridor amount will continue to apply to withdrawals but does not apply
to surrenders.
o We do not impose a withdrawal charge on scheduled payments except if, when
added to any withdrawals previously taken in the same contract year,
including for this purpose a contract surrender, the total amount of
withdrawals and scheduled payments exceed the free corridor amount. See
the "Withdrawal charges" in "Charges and expenses" earlier in this
Prospectus.
If a contract is jointly owned:
o The surviving owner supersedes any other named beneficiary and may elect the
beneficiary continuation option.
o If the deceased joint owner was also the annuitant, see "If you are both the
owner and annuitant" earlier in this section.
o If the deceased joint owner was not the annuitant, see "If the owner and
annuitant are not the same person" earlier in this section.
Payment of death benefit 49
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 Equitable Accumulator(R) Plus(SM) contracts owned by
United States individual taxpayers. The tax rules can differ, depending on the
type of contract, whether NQ, traditional IRA, Roth IRA, QP or TSA. 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
without notice. 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 or values under the contract, or payments under the contract,
for example, amounts due to beneficiaries, may be subject to federal or state
gift, estate, or inheritance 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 adviser 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") and Code Section 403(b)
Arrangements ("TSAs"), respectively: an IRA or 403(b) annuity contract such as
this one, or an IRA or 403(b)(7) custodial or other qualified account. Annuity
contracts can also be purchased in connection with retirement 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. More information on IRAs and TSAs is provided
in the SAI. 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 Accumulator(R) Plus'(SM) extra credit on each contribution,
choice of death benefits, the Guaranteed minimum income benefit, guaranteed
interest option, fixed maturity options, selection of investment funds and its
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
arrangements. You should be aware that cost may vary depending on the features
and benefits made available and the charges and expenses of the investment
options or funds that you elect. Although certain provisions of the Temporary
Regulations on required minimum distributions concerning the actuarial value of
additional contract benefits, which could have increased the amount required to
be distributed from annuity contracts funding qualified plans, TSAs and IRAs
currently have been suspended, these or similar provisions may apply in future
years. You may want to discuss with your tax adviser the potential implication
of these Regulations before you purchase this annuity contract or purchase
additional features under this annuity contract. See also Appendix II at the
end of this Prospectus for a discussion of QP contracts.
TRANSFERS AMONG VARIABLE INVESTMENT OPTIONS
You can make transfers among variable 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 the 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).
50 Tax information
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 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.
PROTECTION PLUS FEATURE
In order to enhance the amount of the death benefit to be paid at the
Annuitant's death, you may purchase a Protection Plus rider for your NQ
contract. Although we regard this benefit as an investment protection feature
which should have no adverse tax effect, it is possible that the IRS could take
a contrary position or assert that the Protection Plus rider is not part of the
contract. In such a case, the charges for the Protection Plus rider could be
treated for federal income tax purposes as a partial withdrawal from the
contract. If this were so, such a deemed withdrawal could be taxable, and for
contract owners under age 59-1/2, also subject to a tax penalty. Were the IRS to
take this position, Equitable would take all reasonable steps to attempt to
avoid this result which could include amending the contract (with appropriate
notice to you).
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
Equitable Accumulator(R) Plus(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 the contract, of the
source contract carries over to the Equitable Accumulator(R) Plus(SM) NQ
contract.
An owner may 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 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. The IRS has not specifically addressed the tax treatment
of the Spousal protection benefit. Please consult with your tax adviser before
electing this feature.
Beneficiary continuation option
We have received a private letter ruling from the IRS regarding certain tax
consequences of scheduled payments under the beneficiary continuation option
for NQ contracts. See the discussion "Beneficiary continuation option for NQ
contracts only" in "Payment of death benefit" earlier in this Prospectus. Among
other things, the IRS rules that:
o scheduled payments under the beneficiary continuation option for NQ contracts
satisfy the death of owner rules of Section 72(s)(2) of the Code,
regardless of whether the beneficiary elects Withdrawal Option 1 or
Withdrawal Option 2;
o scheduled payments, any additional withdrawals under Withdrawal Option 2, or
contract surrenders under Withdrawal Option 1 will only be taxable to the
beneficiary when amounts are actually paid, regardless of the Withdrawal
Option selected by the beneficiary;
o a beneficiary who irrevocably elects scheduled payments with Withdrawal
Option 1 will receive "excludable amount" tax treatment on scheduled
payments. See "Annuity payments" earlier in this section. If the
beneficiary elects to surrender the contract before all scheduled payments
are paid, the amount received upon surrender is a non-annuity payment
taxable to the extent it exceeds any remaining investment in the contract.
The ruling specifically does not address the taxation of any payments received
by a beneficiary electing Withdrawal Option 2 (whether
Tax information 51
scheduled payments or any withdrawal that might be taken). There is no
assurance that we will receive any further rulings addressing the tax
consequences of payments under Withdrawal Option 2. Before electing the
beneficiary continuation option feature, the individuals you designate as
beneficiary or successor owner should discuss with their tax advisers the
consequences of such elections.
The tax treatment of a withdrawal after the death of the owner taken as a
single sum or taken as withdrawals under the 5-year rule is generally the same
as the tax treatment of a withdrawal from or surrender of 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, in accordance with IRS formulas.
INVESTOR CONTROL ISSUES
Under certain circumstances, the IRS has stated that you could be treated as
the owner (for tax purposes) of the assets of Separate Accounts 45 and 49. If
you were treated as the owner, you would be taxable on income and gains
attributable to the shares of the underlying portfolios.
The circumstances that would lead to this tax treatment would be that, in the
opinion of the IRS, you could control the underlying investment of Separate
Accounts 45 and 49. Recently, the IRS has said that the owners of variable
annuities will not be treated as owning the separate account assets provided
the underlying portfolios are restricted to variable life and annuity assets.
The variable annuity owners must have the right only to choose among the
portfolios, and must have no right to direct the particular investment
decisions within the portfolios.
Although we believe that, under current IRS guidance, you would not be treated
as the owner of the assets of Separate Accounts 45 and 49, there are some
issues that remain unclear. For example, the IRS has not issued any guidance as
to whether having a larger number of portfolios available, or an unlimited
right to transfer among them, could cause you to be treated as the owner. We do
not know whether the IRS will ever provide such guidance or whether such
guidance, if unfavorable, would apply retroactively to your contract.
Furthermore, the IRS could reverse its current guidance at any time. We reserve
the right to modify your contract as necessary to prevent you from being
treated as the owner of the assets of Separate Accounts 45 and 49.
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 trustee or custodian holds
the assets funding the account for the benefit of the IRA owner. The assets
typically can include mutual funds and/or individual stocks and/or 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; and
o Roth IRAs, 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 (http://www.irs.gov).
Equitable Life designs its IRA contracts to qualify as individual retirement
annuities under Section 408(b) of the Internal Revenue Code. You may purchase
the contract as a traditional IRA ("Rollover IRA") or Roth IRA ("Roth
Conversion IRA"). The SAI contains the information that the IRS requires you to
have before you purchase an IRA. The disclosure generally assumes direct
ownership of the individual retirement annuity contract. For contracts owned in
a custodial individual retirement account, the disclosure will apply only if
you terminate your account or transfer ownership of the contract to yourself.
We have not applied for an opinion letter from the IRS to approve the
respective forms of the Equitable Accumulator(R) Plus(SM) traditional and
52 Tax information
Roth IRA contracts for use as a traditional and Roth IRA, respectively. We have
received IRS opinion letters approving the respective forms of a similar
traditional IRA and Roth IRA endorsement for use as a traditional 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 contracts submitted for IRS approval do not include every
feature possibly available under the Equitable Accumulator(R) traditional and
Roth IRA contracts.
PROTECTION PLUS(SM) FEATURE
The Protection Plus feature is offered for IRA contracts, subject to state and
contract availability. We have received IRS opinion letters that the contract
with a similar Protection Plus feature qualifies 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 contracts
submitted for IRS approval do not include every feature possibly available
under the Equitable Accumulator(R) traditional and Roth IRA contracts. You
should discuss with your tax adviser whether you should consider purchasing an
Accumulator(R) Plus(SM) IRA or Accumulator(R) Plus(SM) Roth IRA with optional
Protection Plus feature.
CONTRIBUTIONS
Individuals may make three different types of contributions to an 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 IRAs of the same type
("direct transfers").
In addition, an individual may make a taxable rollover contribution from a
traditional IRA to a Roth IRA ("conversion" contributions).
Contributions to all types of IRAs are compensation-based. They are either made
from your current compensation or have a connection with past compensation (for
example, rollover contributions from an eligible retirement plan that you had
with an employer relate to past compensation). Under certain circumstances,
your nonworking spouse, former spouse or surviving spouse may contribute to an
IRA. You can make regular contributions for any year to a traditional IRA
within federal tax law limits up until the calendar year you reach the age
70-1/2. Regular contributions for any year to a Roth IRA can be made at any time
during your life, subject to federal tax law limits.
The amount of contributions you may make to an IRA for any year and whether
such contributions are eligible for special tax treatment (for example,
deductibility from income or a special credit) may vary, depending on your
income, age and whether you participate in an employer-sponsored retirement
plan. Roth IRA contributions are not tax deductible. The maximum regular
contribution that can be made to all of your IRAs (whether traditional or Roth)
for the taxable year for which the contribution is made is $3,000 for 2004 and
$4,000 for 2005. The maximum regular contribution is increased to $3,500 for
2004 and $4,500 for 2005 if you are at least age 50 at any time during the
taxable year for which the contribution is made.
Rollover and transfer contributions are not subject to dollar limits. Rollover
contributions may be made to a traditional IRA from "eligible retirement plans"
which include other traditional IRAs, qualified plans, TSAs and governmental
employer 457(b) plans. For Roth IRAs, rollover contributions may be made from
other Roth IRAs and traditional IRAs. The conversion of a traditional IRA to a
Roth IRA is taxable. Direct transfer contributions may only be made directly
from one traditional IRA to another or from one Roth IRA to another.
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 adviser 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.
A more complete discussion of contributions to traditional IRAs and Roth IRAs
is contained in the SAI.
WITHDRAWALS AND DISTRIBUTIONS
You can withdraw any or all of your funds from an IRA at any time; you do not
need to wait for a special event like retirement. Earnings in IRAs are not
subject to federal income tax until amounts are paid to you or your
beneficiary. Withdrawals from an IRA , surrender of an IRA, death benefits from
an IRA and annuity payments from an IRA may be fully or partially taxable.
Withdrawals and distributions from IRAs are taxable as ordinary income (not
capital gain).
Payments from traditional IRAs and Roth IRAs are taxed differently. Payments
from traditional IRAs are generally fully taxable unless you have made
nondeductible regular contributions or rolled over after-tax contributions. In
any event, the issuer of the traditional IRA is entitled to report the
distribution as fully taxable and it is your responsibility to calculate the
taxable and tax-free portions of any traditional IRA payments on your own tax
returns.
Distributions from Roth IRAs generally receive return of contribution treatment
first under federal income tax calculation rules before any income is taxable.
Certain distributions from Roth IRAs may qualify for fully tax-free treatment.
These are distributions after you reach age 59-1/2, die, become disabled or meet
a qualified first-time homebuyer tax rule. You also have to meet a five-year
aging period.
A distribution from a traditional IRA will not be taxable if it is rolled over
to an eligible retirement plan. A distribution from a Roth IRA will not be
taxable if it is rolled over to another Roth IRA.
Taxable withdrawals or distributions from IRAs may be subject to an additional
10% penalty tax if you are under age 59-1/2, unless an exception applies.
Traditional IRAs are subject to required minimum distribution rules which
require that amounts begin to be distributed in a prescribed manner from the
IRA after the owner reaches age 70-1/2. These rules
Tax information 53
also require distributions after the owner's death. No distributions are
required to be made from Roth IRAs until after the Roth IRA owner's death, but
then the required minimum distribution rules apply.
A more complete discussion of the tax aspects of withdrawals and distributions
from traditional IRAs and Roth IRAs is contained in the SAI.
SPECIAL RULES FOR CONTRACTS FUNDING QUALIFIED PLANS
For QP contracts, your plan administrator or trustee notifies you as to tax
consequences. See Appendix II at the end of this Prospectus.
TAX-SHELTERED ANNUITY CONTRACTS (TSAS)
GENERAL
This section covers some of the special tax rules that apply to annuity
contracts under Section 403(b) of the Internal Revenue Code (TSAs).
Generally, there are two types of funding vehicles available for 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.
PROTECTION PLUS FEATURE
The Protection Plus feature is offered for Rollover TSA contracts, subject to
state and contract availability. There is a limit to the amount of life
insurance benefits that TSAs may offer. Although we view the optional
Protection Plus benefit as an investment protection feature which should have
no adverse tax effect and not as a life insurance benefit, the IRS has not
specifically addressed this issue. It is possible that the IRS could take a
contrary position regarding tax qualification or assert that the Protection
Plus rider is not a permissible part of a TSA contract. If the IRS were to take
the position that the optional Protection Plus benefit is not part of the
contract, in such a case, the charges for the Protection Plus rider could be
treated for federal income tax purposes as a partial withdrawal from the
contract. If this were so, such a deemed withdrawal could affect the tax
qualification of the TSA and could be taxable. Were the IRS to take any adverse
position, Equitable would take all reasonable steps to attempt to avoid any
adverse result, which would include amending the contract (with appropriate
notice to you). You should discuss with your tax adviser whether you should
consider purchasing an Accumulator(R) Plus(SM) Rollover TSA contract with the
optional Protection Plus feature.
CONTRIBUTIONS TO TSAS
There are two ways you can make contributions to your Rollover TSA contract:
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.
If you make a direct transfer, you must fill out our transfer form.
ROLLOVER OR DIRECT TRANSFER CONTRIBUTIONS. You must establish your TSA with
funds that are directly transferred from another 403(b) arrangement or rolled
over from another 403(b) arrangement. You may make subsequent rollover
contributions to your Rollover TSA contract from these sources: qualified
plans, governmental employer 457(b) plans and traditional IRAs, as well as
other TSAs and 403(b) arrangements. All rollover contributions must be pre-tax
funds only with appropriate documentation satisfactory to us.
You should discuss with your tax adviser 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.
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 Equitable Accumulator(R) Plus(SM) contract receiving the funds has
provisions at least as restrictive as the source contract.
Before you transfer funds to a Rollover TSA contract, you may have to obtain
your employer's authorization or demonstrate that you do not need employer
authorization.
Contributions to TSAs are discussed in greater detail in the SAI.
DISTRIBUTIONS FROM 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. Your employer will tell us this when you establish the TSA through
a direct transfer.
You may also need spousal consent for certain transactions and payments.
WITHDRAWAL RESTRICTIONS. If this is a Revenue Ruling 90-24 direct transfer, we
will treat all amounts transferred to this contract and any future earnings on
the amount transferred as not eligible for withdrawal until one of the
following events happens:
o you are severed from employment with the employer which provided the funds to
purchase the TSA you are transferring to the Rollover TSA; or
o you reach age 59-1/2; or
o you die; or
o you become disabled (special federal income tax definition); or
o you take a hardship withdrawal (special federal income tax definition).
The amount of funds subject to withdrawal restrictions may depend on the source
of the funds used to establish the Accumulator(R) Plus(SM) TSA.
54 Tax information
TAX TREATMENT OF DISTRIBUTIONS. Amounts held under TSAs are generally not
subject to federal income tax until benefits are distributed. Distributions
include withdrawals from your TSA contract and annuity payments from your TSA
contract. Death benefits paid to a beneficiary are also taxable distributions.
Unless an exception applies, amounts distributed from TSAs are includable in
gross income as ordinary income. Distributions from TSAs may be subject to 20%
federal income tax withholding. See "Federal and state income tax withholding
and information reporting" later in this Prospectus. In addition, TSA
distributions may be subject to additional tax penalties.
If you have made after-tax contributions, you will have a tax basis in your TSA
contract, which will be recovered tax-free. Since we currently do not accept
after-tax funds, we do not track your investment in the contract, if any. We
will report all distributions from this Rollover TSA as fully taxable. It is
your responsibility to determine how much of the distribution is taxable.
A penalty tax of 10% of the taxable portion of the distribution applies to
distributions from a TSA before your reach age 59-1/2 unless an exception
applies.
Distributions from TSAs are discussed in greater detail in the SAI.
LOANS FROM TSAS
Loans are generally not treated as a taxable distribution. You may take loans
from a TSA unless restricted by the employer (for example, under an employer
plan subject to ERISA). If you cannot take a loan, or cannot take a loan
without approval from the employer who provided the funds, we will have this
information in our records based on what you and the employer who provided the
TSA funds told us when you purchased your contract.
See Appendix VII later in this Prospectus for any state restrictions you may be
subject to if you take a loan from a Rollover TSA contract.
Loans from TSAs are discussed in greater detail in the SAI.
TAX-DEFERRED ROLLOVERS AND DIRECT TRANSFERS
You may roll over an "eligible rollover distribution" from a TSA into another
eligible retirement plan (a qualified plan, a governmental employer 457(b) plan
(separate accounting required), another TSA or a traditional IRA) which agrees
to accept the rollover.
A spousal beneficiary may also roll over death benefits or certain
divorce-related payments.
Direct transfers of TSA funds from one TSA to another under Revenue Ruling
90-24 are not distributions.
Rollovers from TSAs are discussed in greater detail in the SAI.
REQUIRED MINIMUM DISTRIBUTIONS
TSAs are subject to required minimum distribution rules beginning at age 70-1/2
or separation from service, if later. These rules are discussed in greater
detail in the SAI.
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 $17,280 in periodic annuity payments in
2004, 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
Tax information 55
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), 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.
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 AND QUALIFIED PLAN DISTRIBUTIONS
Unless you have the distribution go directly to the new plan, eligible rollover
distributions from qualified plans and TSAs are subject to mandatory 20%
withholding. The plan administrator is responsible for withholding from
qualified plan distributions. An eligible rollover distribution from a TSA or a
qualified plan can be rolled over to another eligible retirement plan. All
distributions from a TSA 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 from service with the employer; 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
o substantially equal periodic payments made for a specified period of 10 years
or more; or
o hardship withdrawals; 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.
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 No. 49 for taxes. We
do not now, but may in the future set up reserves for such taxes.
56 Tax information
8. More information
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ABOUT SEPARATE ACCOUNT NO. 49
Each variable investment option is a subaccount of Separate Account No. 49. We
established Separate Account No. 49 in 1996 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 No. 49 and may withdraw any amounts that exceed
our reserves and other liabilities with respect to variable investment options
under our contracts. The results of the Separate Account's operations are
accounted for without regard to Equitable Life's other operations.
The Separate Account 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 the Separate Account.
Each subaccount (variable investment option) within the Separate Account
invests solely in class IB 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 the Separate Account, 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 the Separate Account 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 the Separate Account
or a variable investment option directly);
(5) to deregister the Separate Account under the Investment Company Act of
1940;
(6) to restrict or eliminate any voting rights as to the Separate Account; 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
The Trusts 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.
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, and other aspects
of its operations, appears in the prospectuses for each Trust, which accompany
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.
FMO rates are determined daily. The rates in the table below are illustrative
only and will most likely differ from the rates applicable at time of purchase.
Current FMO rates can be obtained from your financial professional.
For example, the rates to maturity for new allocations as of February 13, 2004
and the related price per $100 of maturity value were as shown below:
- --------------------------------------------------------
Fixed Maturity
Options with
February 13th Rate to Maturity Price
Maturity Date of as of Per $100 of
Maturity Year February 13, 2004 Maturity Value
- --------------------------------------------------------
2005 3.00%* $ 97.08
2006 3.00%* $ 94.25
2007 3.00%* $ 91.51
2008 3.00%* $ 88.84
2009 3.00%* $ 86.25
2010 3.00%* $ 83.73
2011 3.00%* $ 81.30
2012 3.30% $ 77.11
2013 3.53% $ 73.16
2014 3.73% $ 69.31
- --------------------------------------------------------
* Since these rates to maturity are 3%, no amounts could have been allocated to
these options.
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 any 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.
More information 57
(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 for your FMO based on the rate
for a new FMO issued on the same date and having the same maturity date
as your FMO; if the same maturity date is not available for new FMOs,
we determine a rate that is between the rates for new FMO maturities
that immediately precede and immediately follow your FMOs maturity date.
(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.
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) 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 by using a widely-published Index. We reserve the right to add up to
0.25% 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 expect the rates to maturity for the fixed maturity options 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,
guaranteed interest option and fixed maturity options as well as our general
obligations. Credits allocated to your account value are funded from our
general account.
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.
We have been advised that the staff of the SEC has not reviewed the portions of
this prospectus that relate to the general account. 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
WIRE TRANSMITTALS AND ELECTRONIC APPLICATIONS
We accept initial and subsequent contributions sent by wire to our processing
office by agreement with certain broker-dealers. Such transmittals must be
accompanied by information we require to allocate your contribution. Wire
orders not accompanied by complete information may be retained as described
under "How you can make your contributions" under "Contract features and
benefits" earlier in this Prospectus.
Even if we accept the wire order and essential information, a contract
generally will not be issued until we receive and accept a properly completed
application. In certain cases we may issue a contract based on information
provided through certain broker-dealers with which we have established
electronic facilities. In any such cases, you must sign our Acknowledgement of
Receipt form.
58 More information
Where we require a signed application, the above procedures do not apply and no
financial transactions will be permitted until we receive the signed
application and have issued the contract. Where we issue a contract based on
information provided through electronic facilities, we require an
Acknowledgement of Receipt form, and financial transactions are only permitted
if you request them in writing, sign the request and have it signature
guaranteed, until we receive the signed Acknowledgement of Receipt form. After
your contract has been issued, additional contributions may be transmitted by
wire.
In general, the transaction date for electronic transmissions is the date on
which we receive at our regular processing office all required information and
the funds due for your contribution. We may also establish same-day electronic
processing facilities with a broker-dealer that has undertaken to pay
contribution amounts on behalf of its customers. In such cases, the transaction
date for properly processed orders is the business day on which the
broker-dealer inputs all required information into its electronic processing
system. You can contact us to find out more about such arrangements.
After your contract has been issued, additional contributions may be
transmitted by wire.
AUTOMATIC INVESTMENT PROGRAM -- FOR NQ CONTRACTS ONLY
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 contract on a monthly or quarterly basis. AIP is not available for
Rollover IRA, Roth Conversion IRA, QP contracts or Rollover TSA contracts, nor
is it available with GPB Option 2.
The minimum amounts we will deduct are $100 monthly and $300 quarterly. AIP
additional contributions may be allocated to any of the variable investment
options and available fixed maturity options. 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.
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. on a business day, we will use the next business day.
o A loan request under your Rollover TSA contract will be processed on the
first business day of the month following the date on which the properly
completed loan request form is received.
o If your transaction is set to occur on the same day of the month as the
contract date and that date is the 29th, 30th or 31st of the month, then
the transaction will occur on the 1st day of the next month.
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 If we have entered into an agreement with your broker-dealer for automated
processing of contributions upon receipt of customer order, your
contribution will be considered received at the time your broker-dealer
receives your contribution and all information needed to process your
application, along with any required documents, and transmits your order
to us in accordance with our processing procedures. Such arrangements may
apply to initial contributions, subsequent contributions, or both, and may
be commenced or terminated at any time without prior notice. If required
by law, the "closing time" for such orders will be earlier than 4 p.m.,
Eastern Time.
CONTRIBUTIONS, CREDITS, AND TRANSFERS
o Contributions and credits allocated to the variable investment options are
invested at the value next determined after the close of the business day.
o Contributions and credits allocated to the guaranteed interest option will
receive the crediting rate in effect on that business day for the
specified time period.
o Contributions and credits allocated to a fixed maturity option will receive
the rate to maturity in effect for that fixed maturity option on that
business day (unless a rate lock-in is applicable).
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 a fixed maturity option will be based on the rate to maturity in
effect for that fixed maturity option on the business day of the transfer.
o Transfers to the guaranteed interest option will receive the crediting rate
in effect on that business day for the specified time period.
o For the interest sweep option, 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:
More information 59
o the election of trustees;
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.
The Trusts sell their shares to Equitable Life separate accounts in connection
with Equitable Life's variable annuity and/or life insurance products, and to
separate accounts of insurance companies, both affiliated and unaffiliated with
Equitable Life. EQ Advisors Trust and AXA Premier VIP Trust also sell their
shares to the trustee of a qualified plan for Equitable Life. We currently do
not foresee any disadvantages to our policyowners arising out of these
arrangements. However, the Board of Trustees or Directors of each Trust intends
to monitor events 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 Board's response insufficiently protects our policyowners, we
will see to it that appropriate action is taken to do so.
SEPARATE ACCOUNT NO. 49 VOTING RIGHTS
If actions relating to the Separate Account 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 No. 49, our ability to meet our obligations under the
contracts, or the distribution of the contracts.
ABOUT OUR INDEPENDENT AUDITORS
The consolidated financial statements of Equitable Life at December 31, 2003
and 2002, and for the three years ended December 31, 2003 incorporated in this
Prospectus by reference to the 2003 Annual Report on Form 10-K are incorporated
in reliance on the report of PricewaterhouseCoopers LLP, independent auditors,
given on the authority of said firm as experts in auditing and accounting.
FINANCIAL STATEMENTS
The financial statements of Separate Account No. 49, as well as 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 1-800-789-7771.
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 Rollover IRA, Roth Conversion IRA,
QP or Rollover TSA contract except by surrender to us. If your individual
retirement annuity contract is held in your custodial individual retirement
account, you may only assign or transfer ownership of such an IRA contract to
yourself. Loans are not available and you cannot assign Rollover IRA, Roth
Conversion IRA and QP contracts as security for a loan or other obligation. If
the employer that provided the funds does not restrict them, loans are
available under a Rollover TSA contract.
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 Rollover IRA, Roth
Conversion IRA, QP or Rollover TSA 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
The contracts are distributed by both AXA Advisors, LLC ("AXA Advisors") and
AXA Distributors, LLC ("AXA Distributors"). Both AXA Advisors and AXA
Distributors serve as principal underwriters of Separate Account No. 49. The
offering of the contracts is intended to be continuous.
AXA Advisors (the successor to EQ Financial Consultants, Inc.), an affiliate of
Equitable Life, and AXA Distributors, an indirect wholly owned subsidiary of
Equitable Life, are registered with the SEC as broker dealers and are members
of the National Association of Securities Dealers, Inc. Their principal
business address is 1290 Avenue of the Americas, New York, NY 10104. Both
broker dealers also act as distributors for other Equitable Life annuity
products.
60 More information
AXA Distributors is a successor by merger to all of the functions, rights and
obligations of Equitable Distributors, Inc. ("EDI"). Like AXA Distributors, EDI
was owned by Equitable Holdings, LLC.
The contracts are sold by financial professionals of AXA Advisors and its
affiliates and by financial professionals of AXA Distributors, as well as by
affiliated and unaffiliated broker dealers who have entered into selling
agreements with AXA Distributors.
We pay broker-dealer sales compensation that will generally not exceed 6.0% of
the total contributions made under the contracts. Broker-dealers receiving
sales compensation will generally pay a portion of it to their financial
representatives as commissions related to the sales of the contracts. AXA
Distributors may also receive compensation and reimbursement for its marketing
services under the terms of its distribution agreement with Equitable Life, as
well as payments from portfolio advisers for sales meetings and/or seminar
sponsorships.
Equitable and/or AXA Distributors and/or AXA Advisors may use their respective
past profits or other resources to pay brokers and other financial
intermediaries for certain expenses they incur in providing services intended
to promote the sales of our products and/or shares in the underlying Trusts.
These services may include sales personnel training, prospectus review,
marketing and related services as well as support services that benefit
contract owners.
Similarly, in an effort to promote the sale of our products, AXA Advisors may
provide its financial professionals and managerial personnel with a higher
percentage of sales commissions and/or more compensation for the sale of an
Equitable variable product than it would for the sale of another product. Such
practice is known as providing differential compensation. Other forms of
compensation financial professionals may receive include health and retirement
benefits, credits towards stock options awards and rewards for sales incentive
campaigns. In addition, managerial personnel may receive expense
reimbursements, marketing allowances and so called "overrides." In part for tax
reasons, AXA Advisors financial professionals and managerial personnel qualify
for health and retirement benefits based on their sales of our variable
products.
These payments and differential compensation (together, "payments") can vary in
amount based on the applicable product and/or entity or individual involved. As
with any incentive, such payments may cause the recipient to show preference in
recommending the purchase or sale of our products. However, under applicable
rules of the National Association of Securities Dealers, Inc., AXA Advisors
financial professionals may only recommend to you products that they reasonably
believe are suitable for you based on facts that you have disclosed as to your
other security holdings, financial situation and needs. In making any
recommendation, financial professionals may nonetheless face conflicts of
interest because of the differences in compensation from one product category
to another, and because of differences in compensation between products in the
same category. Although Equitable takes all of its costs into account in
establishing the level of fees and expenses in our products, payments made will
not result in any separate charge to you under your contract.
More information 61
9. Incorporation of certain documents by reference
- --------------------------------------------------------------------------------
Equitable Life's Annual Report on Form 10-K for the year ended December 31,
2003 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 unit values and number of units outstanding shown below are for contracts
offered under Separate Account 49 with the same daily asset charges of 1.50%.
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, 2003
- ------------------------------------------------------------------------------------------------------------------------------------
For the year ending December 31,
----------------------------------------------------
2003
- ------------------------------------------------------------------------------------------------------------------------------------
AXA Aggressive Allocation
- ------------------------------------------------------------------------------------------------------------------------------------
Unit value $ 10.67
- ------------------------------------------------------------------------------------------------------------------------------------
Number of units outstanding (000's) 212
- ------------------------------------------------------------------------------------------------------------------------------------
AXA Conservative Allocation
- ------------------------------------------------------------------------------------------------------------------------------------
Unit value $ 10.31
- ------------------------------------------------------------------------------------------------------------------------------------
Number of units outstanding (000's) 213
- ------------------------------------------------------------------------------------------------------------------------------------
AXA Conservative-Plus Allocation
- ------------------------------------------------------------------------------------------------------------------------------------
Unit value $ 10.41
- ------------------------------------------------------------------------------------------------------------------------------------
Number of units outstanding (000's) 444
- ------------------------------------------------------------------------------------------------------------------------------------
AXA Moderate Allocation
- ------------------------------------------------------------------------------------------------------------------------------------
Unit value $ 10.51
- ------------------------------------------------------------------------------------------------------------------------------------
Number of units outstanding (000's) 2,029
- ------------------------------------------------------------------------------------------------------------------------------------
AXA Moderate-Plus Allocation
- ------------------------------------------------------------------------------------------------------------------------------------
Unit value $ 10.67
- ------------------------------------------------------------------------------------------------------------------------------------
Number of units outstanding (000's) 995
- ------------------------------------------------------------------------------------------------------------------------------------
AXA Premier VIP Aggressive Equity
- ------------------------------------------------------------------------------------------------------------------------------------
Unit value $ 10.67
- ------------------------------------------------------------------------------------------------------------------------------------
Number of units outstanding (000's) 70
- ------------------------------------------------------------------------------------------------------------------------------------
AXA Premier VIP Core Bond
- ------------------------------------------------------------------------------------------------------------------------------------
Unit value $ 10.17
- ------------------------------------------------------------------------------------------------------------------------------------
Number of units outstanding (000's) 446
- ------------------------------------------------------------------------------------------------------------------------------------
AXA Premier VIP Health Care
- ------------------------------------------------------------------------------------------------------------------------------------
Unit value $ 10.59
- ------------------------------------------------------------------------------------------------------------------------------------
Number of units outstanding (000's) 124
- ------------------------------------------------------------------------------------------------------------------------------------
AXA Premier VIP High Yield
- ------------------------------------------------------------------------------------------------------------------------------------
Unit value $ 10.59
- ------------------------------------------------------------------------------------------------------------------------------------
Number of units outstanding (000's) 712
- ------------------------------------------------------------------------------------------------------------------------------------
AXA Premier VIP International Equity
- ------------------------------------------------------------------------------------------------------------------------------------
Unit value $ 11.24
- ------------------------------------------------------------------------------------------------------------------------------------
Number of units outstanding (000's) 191
- ------------------------------------------------------------------------------------------------------------------------------------
AXA Premier VIP Large Cap Core Equity
- ------------------------------------------------------------------------------------------------------------------------------------
Unit value $ 10.58
- ------------------------------------------------------------------------------------------------------------------------------------
Number of units outstanding (000's) 108
- ------------------------------------------------------------------------------------------------------------------------------------
AXA Premier Large Cap Growth
- ------------------------------------------------------------------------------------------------------------------------------------
Unit value $ 10.46
- ------------------------------------------------------------------------------------------------------------------------------------
Number of units outstanding (000's) 136
- ------------------------------------------------------------------------------------------------------------------------------------
AXA Premier VIP Large Cap Value
- ------------------------------------------------------------------------------------------------------------------------------------
Unit value $ 11.07
- ------------------------------------------------------------------------------------------------------------------------------------
Number of units outstanding (000's) 116
- ------------------------------------------------------------------------------------------------------------------------------------
AXA Premier VIP Small/Mid Cap Growth
- ------------------------------------------------------------------------------------------------------------------------------------
Unit value $ 10.53
- ------------------------------------------------------------------------------------------------------------------------------------
Number of units outstanding (000's) 274
- ------------------------------------------------------------------------------------------------------------------------------------
Appendix I: Condensed financial information A-1
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, 2003 (CONTINUED)
- ------------------------------------------------------------------------------------------------------------------------------------
For the year ending December 31,
----------------------------------------------------
2003
- ------------------------------------------------------------------------------------------------------------------------------------
AXA Premier VIP Small/Mid Cap Value
- ------------------------------------------------------------------------------------------------------------------------------------
Unit value $ 11.00
- ------------------------------------------------------------------------------------------------------------------------------------
Number of units outstanding (000's) 288
- ------------------------------------------------------------------------------------------------------------------------------------
AXA Premier VIP Technology
- ------------------------------------------------------------------------------------------------------------------------------------
Unit value $ 10.31
- ------------------------------------------------------------------------------------------------------------------------------------
Number of units outstanding (000's) 104
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/Alliance Common Stock
- ------------------------------------------------------------------------------------------------------------------------------------
Unit value $ 10.93
- ------------------------------------------------------------------------------------------------------------------------------------
Number of units outstanding (000's) 698
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/Alliance Growth and Income
- ------------------------------------------------------------------------------------------------------------------------------------
Unit value $ 10.93
- ------------------------------------------------------------------------------------------------------------------------------------
Number of units outstanding (000's) 452
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/Alliance Intermediate Government Securities
- ------------------------------------------------------------------------------------------------------------------------------------
Unit value $ 10.10
- ------------------------------------------------------------------------------------------------------------------------------------
Number of units outstanding (000's) 216
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/Alliance International
- ------------------------------------------------------------------------------------------------------------------------------------
Unit value $ 11.19
- ------------------------------------------------------------------------------------------------------------------------------------
Number of units outstanding (000's) 147
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/Alliance Premier Growth
- ------------------------------------------------------------------------------------------------------------------------------------
Unit value $ 10.35
- ------------------------------------------------------------------------------------------------------------------------------------
Number of units outstanding (000's) 80
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/Alliance Quality Bond
- ------------------------------------------------------------------------------------------------------------------------------------
Unit value $ 10.20
- ------------------------------------------------------------------------------------------------------------------------------------
Number of units outstanding (000's) 207
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/Alliance Small Cap Growth
- ------------------------------------------------------------------------------------------------------------------------------------
Unit value $ 10.76
- ------------------------------------------------------------------------------------------------------------------------------------
Number of units outstanding (000's) 157
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/Bernstein Diversified Value
- ------------------------------------------------------------------------------------------------------------------------------------
Unit value $ 10.94
- ------------------------------------------------------------------------------------------------------------------------------------
Number of units outstanding (000's) 544
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/Calvert Socially Responsible
- ------------------------------------------------------------------------------------------------------------------------------------
Unit value $ 10.49
- ------------------------------------------------------------------------------------------------------------------------------------
Number of units outstanding (000's) 6
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/Capital Guardian International
- ------------------------------------------------------------------------------------------------------------------------------------
Unit value $ 11.18
- ------------------------------------------------------------------------------------------------------------------------------------
Number of units outstanding (000's) 181
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/Capital Guardian Research
- ------------------------------------------------------------------------------------------------------------------------------------
Unit value $ 10.72
- ------------------------------------------------------------------------------------------------------------------------------------
Number of units outstanding (000's) 143
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/Capital Guardian U. S. Equity
- ------------------------------------------------------------------------------------------------------------------------------------
Unit value $ 10.79
- ------------------------------------------------------------------------------------------------------------------------------------
Number of units outstanding (000's) 368
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/Emerging Markets Equity
- ------------------------------------------------------------------------------------------------------------------------------------
Unit value $ 11.49
- ------------------------------------------------------------------------------------------------------------------------------------
Number of units outstanding (000's) 209
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/Equity 500 Index
- ------------------------------------------------------------------------------------------------------------------------------------
Unit value $ 10.77
- ------------------------------------------------------------------------------------------------------------------------------------
Number of units outstanding (000's) 620
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/Evergreen Omega
- ------------------------------------------------------------------------------------------------------------------------------------
Unit value $ 10.69
- ------------------------------------------------------------------------------------------------------------------------------------
Number of units outstanding (000's) 120
- ------------------------------------------------------------------------------------------------------------------------------------
A-2 Appendix I: Condensed financial information
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, 2003 (CONTINUED)
- ------------------------------------------------------------------------------------------------------------------------------------
For the year ending December 31,
----------------------------------------------------
2003
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/FI Mid Cap
- ------------------------------------------------------------------------------------------------------------------------------------
Unit value $ 11.34
- ------------------------------------------------------------------------------------------------------------------------------------
Number of units outstanding (000's) 415
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/FI Small/Mid Cap Value
- ------------------------------------------------------------------------------------------------------------------------------------
Unit value $ 11.05
- ------------------------------------------------------------------------------------------------------------------------------------
Number of units outstanding (000's) 314
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/J.P. Morgan Core Bond
- ------------------------------------------------------------------------------------------------------------------------------------
Unit value $ 10.20
- ------------------------------------------------------------------------------------------------------------------------------------
Number of units outstanding (000's) 460
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/Janus Large Cap Growth
- ------------------------------------------------------------------------------------------------------------------------------------
Unit value $ 10.47
- ------------------------------------------------------------------------------------------------------------------------------------
Number of units outstanding (000's) 54
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/Lazard Small Cap Value
- ------------------------------------------------------------------------------------------------------------------------------------
Unit value $ 10.94
- ------------------------------------------------------------------------------------------------------------------------------------
Number of units outstanding (000's) 337
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/Marsico Focus
- ------------------------------------------------------------------------------------------------------------------------------------
Unit value $ 10.58
- ------------------------------------------------------------------------------------------------------------------------------------
Number of units outstanding (000's) 642
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/Mercury Basic Value Equity
- ------------------------------------------------------------------------------------------------------------------------------------
Unit value $ 10.92
- ------------------------------------------------------------------------------------------------------------------------------------
Number of units outstanding (000's) 371
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/Mercury International Value
- ------------------------------------------------------------------------------------------------------------------------------------
Unit value $ 11.10
- ------------------------------------------------------------------------------------------------------------------------------------
Number of units outstanding (000's) 55
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/MFS Emerging Growth Companies
- ------------------------------------------------------------------------------------------------------------------------------------
Unit value $ 10.24
- ------------------------------------------------------------------------------------------------------------------------------------
Number of units outstanding (000's) 49
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/MFS Investors Trust
- ------------------------------------------------------------------------------------------------------------------------------------
Unit value $ 10.57
- ------------------------------------------------------------------------------------------------------------------------------------
Number of units outstanding (000's) 69
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/Money Market
- ------------------------------------------------------------------------------------------------------------------------------------
Unit value $ 9.97
- ------------------------------------------------------------------------------------------------------------------------------------
Number of units outstanding (000's) 1,312
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/Putnam Growth & Income Value
- ------------------------------------------------------------------------------------------------------------------------------------
Unit value $ 10.97
- ------------------------------------------------------------------------------------------------------------------------------------
Number of units outstanding (000's) 68
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/Putnam Voyager
- ------------------------------------------------------------------------------------------------------------------------------------
Unit value $ 10.41
- ------------------------------------------------------------------------------------------------------------------------------------
Number of units outstanding (000's) 83
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/Small Company Index
- ------------------------------------------------------------------------------------------------------------------------------------
Unit value $ 10.72
- ------------------------------------------------------------------------------------------------------------------------------------
Number of units outstanding (000's) 208
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/Technology
- ------------------------------------------------------------------------------------------------------------------------------------
Unit value $ 10.24
- ------------------------------------------------------------------------------------------------------------------------------------
Number of units outstanding (000's) 69
- ------------------------------------------------------------------------------------------------------------------------------------
Laudus Rosenberg VIT Value Long/Short Equity
- ------------------------------------------------------------------------------------------------------------------------------------
Unit value $ 10.16
- ------------------------------------------------------------------------------------------------------------------------------------
Number of units outstanding (000's) 32
- ------------------------------------------------------------------------------------------------------------------------------------
U.S. Real Estate
- ------------------------------------------------------------------------------------------------------------------------------------
Unit value $ 11.00
- ------------------------------------------------------------------------------------------------------------------------------------
Number of units outstanding (000's) 109
- ------------------------------------------------------------------------------------------------------------------------------------
Appendix I: Condensed financial information A-3
Appendix II: Purchase considerations for QP contracts
- --------------------------------------------------------------------------------
Trustees who are considering the purchase of an Equitable Accumulator(R)
Plus(SM) QP contract should discuss with their tax advisers whether this is an
appropriate investment vehicle for the employer's plan. Trustees should
consider whether the plan provisions permit the investment of plan assets in
the QP contract, the distribution of such an annuity and the payment of death
benefits in accordance with the requirements of the federal income tax rules.
The QP contract and this Prospectus should be reviewed in full, and the
following factors, among others, should be noted. Assuming continued plan
qualification and operation, earnings on qualified plan assets will accumulate
value on a tax-deferred basis even if the plan is not funded by the Equitable
Accumulator(R) Plus(SM) QP contract or another annuity. Therefore, you should
purchase an Equitable Accumulator(R) Plus(SM) QP contract to fund a plan for the
contract's features and benefits other than tax deferral, after considering the
relative costs and benefits of annuity contracts and other types of
arrangements and funding vehicles. This QP contract accepts transfer
contributions only and not regular, ongoing payroll contributions. For 401(k)
plans under defined contribution plans, no employee after-tax contributions are
accepted.
We will not accept defined benefit plans. For defined contribution plans, we
will only accept transfers from another defined contribution plan or a change
of investment vehicles in the plan. Only one additional transfer contribution
may be made per contract year. If overfunding of a plan occurs or amounts
attributable to an excess contribution must be withdrawn, withdrawals from the
QP contract may be required. A withdrawal charge and/or market value adjustment
may apply.
Equitable Life will not perform or provide any plan recordkeeping services with
respect to the QP contracts. The plan's administrator will be solely
responsible for performing or providing for all such services. There is no loan
feature offered under the QP contracts, so if the plan provides for loans and a
participant/employee takes a loan from the plan, other plan assets must be used
as the source of the loan and any loan repayments must be credited to other
investment vehicles and/or accounts available under the plan.
Given that required minimum distributions must generally commence from the plan
for annuitants after age 70-1/2, trustees should consider that:
o the QP contract may not be an appropriate purchase for annuitants approaching
or over age 70-1/2;
o although certain provisions of the Temporary Regulations on required minimum
distributions which would have required that the actuarial value of
additional annuity contract benefits be added to the dollar amount credited
for purposes of calculating required minimum distributions have currently
been suspended, these or similar provisions may apply in future years, and
could increase the amounts required to be distributed from the contract; and
o the Guaranteed minimum income benefit may not be an appropriate feature for
annuitants who are older than 60-1/2 when the contract is issued.
Finally, because the method of purchasing the QP contract, including the large
initial contribution and the features of the QP contract may appeal more to
plan participants/employees who are older and tend to be highly paid, and
because certain features of the QP contract are available only to plan
participants/employees who meet certain minimum and/or maximum age
requirements, plan trustees should discuss with their advisers whether the
purchase of the QP contract would cause the plan to engage in prohibited
discrimination in contributions, benefits or otherwise.
B-1 Appendix II: Purchase considerations for QP contracts
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 was allocated
on February 13, 2004 to a fixed maturity option with a maturity date of
February 13, 2013 (nine years later) at a hypothetical rate to maturity of
7.00%, resulting in a maturity value of $183,914 on the maturity date. We
further assume that a withdrawal of $50,000 is made four years later on
February 13, 2009.
- ------------------------------------------------------------------------------------------------
Hypothetical assumed rate to maturity on
February 13, 2009
-----------------------------------------------
5.00% 9.00%
- ------------------------------------------------------------------------------------------------
As of February 13, 2009 (before withdrawal)
- ------------------------------------------------------------------------------------------------
(1) Market adjusted amount $144,082 $ 119,503
- ------------------------------------------------------------------------------------------------
(2) Fixed maturity amount $131,104 $ 131,104
- ------------------------------------------------------------------------------------------------
(3) Market value adjustment:
(1) - (2) $ 12,978 $ (11,601)
- ------------------------------------------------------------------------------------------------
On February 13, 2009 (after withdrawal)
- ------------------------------------------------------------------------------------------------
(4) Portion of market value adjustment associated
with withdrawal:
(3) x [$50,000/(1)] $ 4,504 $ (4,854)
- ------------------------------------------------------------------------------------------------
(5) Reduction in fixed maturity amount: [$50,000 - (4)] $ 45,496 $ 54,854
- ------------------------------------------------------------------------------------------------
(6) Fixed maturity amount: (2) - (5) $ 85,608 $ 76,250
- ------------------------------------------------------------------------------------------------
(7) Maturity value $120,091 $ 106,965
- ------------------------------------------------------------------------------------------------
(8) Market adjusted amount of (7) $ 94,082 $ 69,503
- ------------------------------------------------------------------------------------------------
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 portion of 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 portion of a positive
market value adjustment is realized. The market value is computed differently
if you withdraw amounts on a date other than the anniversary of the
establishment of the fixed maturity option.
Appendix III: Market value adjustment example C-1
Appendix IV: Enhanced death benefit example
- --------------------------------------------------------------------------------
The death benefit under the contracts is equal to the account value or, if
greater, the enhanced death benefit.
The following illustrates the enhanced death benefit calculation. Assuming
$100,000 is allocated to the variable investment options (with no allocation to
the EQ/Alliance Intermediate Government Securities, EQ/Money Market, the
guaranteed interest option, the fixed maturity options or the Special 10 year
fixed maturity option), no additional contributions, no transfers, no
withdrawals and no loans under a Rollover TSA contract, the enhanced death
benefit for an annuitant age 45 would be calculated as follows:
- -------------------------------------------------------------------------------------------------------
6% Roll up to age 85 Annual Ratchet to age 85
End of Contract Year Account Value enhanced benefit base enhanced benefit base
- -------------------------------------------------------------------------------------------------------
1 109,200 $106,000 109,200
- -------------------------------------------------------------------------------------------------------
2 120,120 $112,360 120,120
- -------------------------------------------------------------------------------------------------------
3 134,534 $119,102 134,534
- -------------------------------------------------------------------------------------------------------
4 107,628 $126,248 134,534
- -------------------------------------------------------------------------------------------------------
5 118,390 $133,823 134,534
- -------------------------------------------------------------------------------------------------------
6 132,597 $141,852 134,534
- -------------------------------------------------------------------------------------------------------
7 132,597 $150,363 134,534
- -------------------------------------------------------------------------------------------------------
The account values for contract years 1 through 7 are based on hypothetical
rates of return of 5.00%, 10.00%, 12.00%, (20.00)%, 10.00%, 12.00% and 0.00%.
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.
ANNUAL RATCHET TO AGE 85
(1) At the end of contract years 1 through 3, the enhanced death benefit is the
current account value.
(2) At the end of contract years 4 through 7, the enhanced death benefit is the
enhanced death benefit at the end of the prior year since it is equal to
or higher than the current account value.
GREATER OF 6% ROLL UP TO AGE 85 OR THE ANNUAL RATCHET TO AGE 85
The enhanced death benefit under this option for each year shown would be the
greater of the amounts shown under the 6% Roll up to age 85 or the Annual
Ratchet to age 85.*
* At the end of contract years 4 through 7, the death benefit will be the
enhanced death benefit. At the end of contract years 1, 2 and 3, the death
benefit will be the current account value.
D-1 Appendix IV: Enhanced death benefit example
Appendix V: Hypothetical Illustrations
- --------------------------------------------------------------------------------
ILLUSTRATION OF ACCOUNT VALUES, CASH VALUES AND CERTAIN GUARANTEED MINIMUM
BENEFITS
The following tables illustrate the changes in account value, cash value and
the values of the "greater of 6% Roll up to age 85 or the Annual Ratchet to age
85" guaranteed minimum death benefit, the Protection Plus benefit and the
Guaranteed minimum income benefit under certain hypothetical circumstances for
an Accumulator(R) Plus(SM) contract. The table illustrates the operation of a
contract based on a male, issue age 60, who makes a single$100,000 contribution
and takes no withdrawals. The amounts shown are for the beginning of each
contract year and assume that all of the account value is invested in
portfolios that achieve investment returns at constant gross annual rates of 0%
and 6% (i.e., before any investment management fees, 12b-1 fees or other
expenses are deducted from the underlying portfolio assets). After the
deduction of the arithmetic average of the investment management fees, 12b-1
fees and other expenses of all of the underlying Portfolios (as described
below), the corresponding net annual rates of return would be (3.18)%, 2.82%
for the Accumulator(R) Plus(SM) contract, at the 0% and 6% gross annual rates,
respectively. These net annual rates of return reflect the trust and separate
account level charges but they do not reflect the charges we deduct from your
account value annually for the optional Guaranteed minimum death benefit,
Protection Plus benefit and the Guaranteed minimum income benefit features, as
well as the annual administrative charge. If the net annual rates of return did
reflect these charges, the net annual rates of return would be lower; however,
the values shown in the following tables reflect all contract charges. The
values shown under "Lifetime annual guaranteed minimum income benefit" reflect
the lifetime income that would be guaranteed if the Guaranteed minimum income
benefit is selected at that contract anniversary. An "N/A" in these columns
indicates that the benefit is not exercisable in that year. A "0" under any of
the death benefit and/or "Lifetime annual guaranteed minimum income benefit"
columns indicates that the contract has terminated due to insufficient account
value and, consequently, the guaranteed benefit has no value.
With respect to fees and expenses deducted from assets of the underlying
portfolios, the amounts shown in all tables reflect (1) investment management
fees equivalent to an effective annual rate of 0.68%, and (2) an assumed
average asset charge for all other expenses of the underlying portfolios
equivalent to an effective annual rate of 0.85% and (3) 12b-1 fees equivalent
to an effective annual rate of 0.25%. These rates are the arithmetic average
for all portfolios that are available as investment options. In other words,
they are based on the hypothetical assumption that account values are allocated
equally among the variable investment options. The actual rates associated with
any contract will vary depending upon the actual allocation of policy values
among the investment options. These rates do not reflect expense limitation
arrangements in effect with respect to certain of the underlying portfolios as
described in the footnotes to the fee table for the underlying portfolios in
"Fee Table" earlier in this Prospectus. With these arrangements, the charges
shown above would be lower. This would result in higher values than those shown
in the following tables.
Because your circumstances will no doubt differ from those in the illustrations
that follow, values under your contract will differ, in most cases
substantially. Upon request, we will furnish you with a personalized
illustration.
Appendix V: Hypothetical Illustrations E-1
Variable deferred annuity
Accumulator(R) Plus(SM)
$100,000 Single contribution and no withdrawals
Male, issue age 60
Benefits:
Greater of 6% Roll up to age 85 or the Annual Ratchet to age 85 Guaranteed
minimum death benefit
Protection Plus
Guaranteed minimum income benefit
Greater of 6%
Roll up to age 85
or the Annual
Ratchet to age 85
Guaranteed Minimum
Account Value Cash Value Death Benefit
------------------- ------------------ -------------------
Age Contract Year 0% 6% 0% 6% 0% 6%
- ------ -------------- --------- --------- -------- --------- --------- ---------
60 1 104,000 104,000 96,000 96,000 100,000 100,000
61 2 98,912 105,130 90,912 97,130 106,000 106,000
62 3 93,928 106,207 86,928 99,207 112,360 112,360
63 4 89,041 107,225 82,041 100,225 119,102 119,102
64 5 84,240 108,178 78,240 102,178 126,248 126,248
65 6 79,519 109,059 74,519 104,059 133,823 133,823
66 7 74,869 109,860 70,869 105,860 141,852 141,852
67 8 70,280 110,574 67,280 107,574 150,363 150,363
68 9 65,745 111,191 65,745 111,191 159,385 159,385
69 10 61,254 111,704 61,254 111,704 168,948 168,948
74 15 39,098 112,332 39,098 112,332 226,090 226,090
79 20 16,602 108,576 16,602 108,576 302,560 302,560
84 25 0 98,383 0 98,383 0 404,893
89 30 0 93,995 0 93,995 0 429,187
94 35 0 92,127 0 92,127 0 429,187
95 36 0 91,727 0 91,727 0 429,187
Lifetime Annual Guaranteed
Minimum Income Benefit
----------------------------------
Total Death Benefit
with Protection Guaranteed Hypothetical
Plus Income Income
------------------- ----------------- ----------------
Age 0% 6% 0% 6% 0% 6%
- ------ --------- --------- -------- -------- -------- -------
60 100,000 100,000 N/A N/A N/A N/A
61 108,400 108,400 N/A N/A N/A N/A
62 117,304 117,304 N/A N/A N/A N/A
63 126,742 126,742 N/A N/A N/A N/A
64 136,747 136,747 N/A N/A N/A N/A
65 147,352 147,352 N/A N/A N/A N/A
66 158,593 158,593 N/A N/A N/A N/A
67 170,508 170,508 N/A N/A N/A N/A
68 183,139 183,139 N/A N/A N/A N/A
69 196,527 196,527 N/A N/A N/A N/A
74 276,527 276,527 14,266 14,266 14,266 14,266
79 383,584 383,584 20,393 20,393 20,393 20,393
84 0 493,179 0 34,821 0 34,821
89 0 517,472 N/A N/A N/A N/A
94 0 517,472 N/A N/A N/A N/A
95 0 517,472 N/A N/A N/A N/A
The hypothetical investment results are illustrative only and should not be
deemed a representation of past or future investment results. Actual investment
results may be more or less than those shown and will depend on a number of
factors, including investment allocations made by the owner. The account value,
cash value and guaranteed benefits for a contract would be different from the
ones shown if the actual gross rate of investment return averaged 0% or 6% over
a period of years, but also fluctuated above or below the average for
individual contract years. We can make no representation that these
hypothetical investment results can be achieved for any one year or continued
over any period of time. In fact, for any given period of time, the investment
results could be negative.
E-2 Appendix V: Hypothetical Illustrations
Appendix VI: Guaranteed principal benefit example
- --------------------------------------------------------------------------------
For purposes of these examples, we assume that there is an initial contribution
of $100,000, made to the contract on February 13, 2004. We also assume that no
additional contributions, no transfers among options and no withdrawals from
the contract are made. For GPB Option 1, the example also assumes that a 10
year fixed maturity option is chosen. The hypothetical gross rates of return
with respect to amounts allocated to the variable investment options are 0%, 6%
and 10%. The numbers below reflect the deduction of all applicable separate
account and contract charges, and also reflect the charge for GPB Option 2.
Also, for any given performance of your variable investment options, GPB Option
1 produces higher account values than GPB Option 2 unless investment
performance has been significantly positive. The examples should not be
considered a representation of past or future expenses. Similarly, the annual
rates of return assumed in the example are not an estimate or guarantee of
future investment performance.
- ------------------------------------------------------------------------------------------------------------------------------------
Assuming 100%
Assuming 100% Under GPB Under GPB in variable invest-
in FMO Option 1 Option 2 ment options
- ------------------------------------------------------------------------------------------------------------------------------------
Amount allocated to FMO on February 13, 2004 based 104,000 72,082 36,400 --
upon a 3.73% rate to maturity
- ------------------------------------------------------------------------------------------------------------------------------------
Initial account value allocated to the variable invest- -- 31,918 67,600 104,000
ment options on February 13, 2004
- ------------------------------------------------------------------------------------------------------------------------------------
Account value in the fixed maturity option on February 150,040 104,000 52,514 --
13, 2014
- ------------------------------------------------------------------------------------------------------------------------------------
Annuity account value (computed by adding together 150,040 126,866 100,000* 74,507
the value at the maturity date of the applicable fixed
maturity option plus the value of amounts in the vari-
able investment options on February 13, 2014,
assuming a 0% gross rate of return)
- ------------------------------------------------------------------------------------------------------------------------------------
Annuity account value (computed by adding together 150,040 145,743 134,143** 136,014
the value at the maturity date of the applicable fixed
maturity option plus the value of amounts in the vari-
able investment options on February 13, 2014,
assuming a 6% gross rate of return)
- ------------------------------------------------------------------------------------------------------------------------------------
Annuity account value (computed by adding together 150,040 165,163 172,798** 199,293
the value at the maturity date of the applicable fixed
maturity option plus the value of amounts in the vari-
able investment options on February 13, 2014,
assuming a 10% gross rate of return)
- ------------------------------------------------------------------------------------------------------------------------------------
* Since the annuity account value is less than the alternate benefit under GPB
Option 2, the annuity account value is adjusted upward to the guaranteed
amount or an increase of $3,899 in this example.
** Since the annuity account value is greater than the alternate benefit under
GPB Option 2, GPB Option 2 will not affect the annuity account value.
Appendix VI: Guaranteed principal benefit example F-1
Appendix VII -- State contract availability and/or variations of certain
features and benefits
- --------------------------------------------------------------------------------
The following information is a summary of the states where the Equitable
Accumulator(R) Plus(SM) contract or certain features and/or benefits are either
NOT available as of the date of this Prospectus OR have certain variations to
the contract's features and benefits as previously described in this
Prospectus.
STATES WHERE CERTAIN ACCUMULATOR(R) PLUS(SM) FEATURES AND/OR BENEFITS ARE NOT
AVAILABLE OR HAS CERTAIN VARIATIONS TO FEATURES AND/OR BENEFITS:
- ------------------------------------------------------------------------------------------------------------------------------------
State Features and Benefits Availability or Variation
- ------------------------------------------------------------------------------------------------------------------------------------
FLORIDA See "Contract features and benefits" in "Credits" The following information replaces the second bullet to the final
set of bullets in this section:
o You may annuitize your contract after thirteen months, however,
if you elect to receive annuity payments within five years of the
contract date, we will recover the credit that applies to any
contribution made in that five years. If you start receiving
annuity payments after five years from the contract date and
within three years of making any contribution, we will recover
the credit that applies to any contribution made within the prior
three years.
- ------------------------------------------------------------------------------------------------------------------------------------
MARYLAND Fixed maturity options Not Available
Guaranteed principal benefit option 1 and Guaranteed Not Available
principal benefit option 2
- ------------------------------------------------------------------------------------------------------------------------------------
NEW YORK Greater of the 6% roll up or Annual Ratchet Not Available (you have a choice of the standard death benefit
Guaranteed minimum death benefit or the Annual Ratchet to age 85 guaranteed minimum death
benefit), as described earlier in this Prospectus.
Protection Plus Not Available
Variable Immediate Annuity payout options -- Life Not Available
annuity contracts
Fixed maturity options Not Available
Guaranteed principal benefit option 1 and Guaranteed Not Available
principal benefit option 2
"Indication of Intent" The "Indication of Intent" approach to first year contributions in
connection with the contribution crediting rate is not available.
See "Contract features and benefits" in "Credits" The following information is added as the third bullet to the final
set of bullets in this section:
o In New York, where annuity payments may begin after the first
contract year, if you elect to receive annuity payments, we will
not recover the credit on any contributions. See "The amount
applied to purchase an annuity payout option" in "Accessing
your money" later in the Prospectus for more information on
the effect of annuitization in New York.
See "Termination of your contract" in "Determining If your account value in the variable investment options is
your contract's value" insufficient to pay the annual administrative, guaranteed minimum
death benefit and/or the guaranteed minimum income benefit charges,
and you have no account value in the guaranteed interest option,
your contract will terminate without value, and you will lose any
applicable benefits. See "Charges and expenses" earlier in this
Prospectus.
- ------------------------------------------------------------------------------------------------------------------------------------
G-1 Appendix VII -- State contract availability and/or variations of certain
features and benefits
- ------------------------------------------------------------------------------------------------------------------------------------
State Features and Benefits Availability or Variation
- ------------------------------------------------------------------------------------------------------------------------------------
NEW YORK, See "The amount applied to purchase an annuity In New York, regardless of the form of annuity chosen, the amount
CONTINUED payout option" in "Accessing your money" applied to the annuity benefit is the greater of the cash value or
95% of what the account value would be if no withdrawal charge
applied. The income provided, however, will never be less than what
would be provided by applying the account value to the guaranteed
annuity purchase factors. The guaranteed annuity purchase factors
we use to determine your annuity benefit are lower than those we use
under other contracts.
See "Annuity maturity date" in "Accessing your Your contract has a maturity date by which you must either take
money" a lump sum withdrawal or select an annuity payout option. The
maturity date is the contract date that follows the annuitant's
90th birthday.
See "Charges and expenses" With regard to the Annual administrative, Guaranteed minimum
death benefit and Guaranteed minimum income benefit charges,
respectively, we will deduct the related charge, as follows for
each: we will deduct this charge from your value in the variable
investment options on a pro rata basis. If the contract is
surrendered or annuitized or a death benefit is paid, we will deduct
a pro rata portion of the charge for that year.
If your account value in the variable investment options is insuffi-
cient to pay this charge, and you have no account value in the
guaranteed interest option, your contract will terminate without
value and you will lose any applicable guaranteed benefits.
Please see "Termination of your contract" in "Determining your
contract's value" earlier in this Prospectus.
- ------------------------------------------------------------------------------------------------------------------------------------
PENNSYLVANIA Contribution age limitations The following contribution limits apply:
Maximum
Issue age Contribution age
--------- ----------------
0-75 77
76 78
77 79
78-80 80
See "Annuity maturity date" in "Accessing your The maturity date by which you must take a lump sum withdrawal
money" or select an annuity payout option is as follows:
Maximum
Issue age Annuitization age
--------- -----------------
0-75 85
76 86
77 87
78-80 88
- ------------------------------------------------------------------------------------------------------------------------------------
PUERTO RICO IRA, Roth IRA and Rollover TSA contracts Not Available
Beneficiary continuation option (IRA) Not Available
- ------------------------------------------------------------------------------------------------------------------------------------
VERMONT Loans under Rollover TSA contracts Taking a loan in excess of the Internal Revenue Code limits may
result in adverse tax consequences. Please consult your tax
adviser before taking a loan that exceeds the Internal Revenue
Code limits.
- ------------------------------------------------------------------------------------------------------------------------------------
Appendix VII -- State
contract availability and/or variations of certain features and benefits G-2
Statement of additional information
- --------------------------------------------------------------------------------
TABLE OF CONTENTS
Page
Tax Information 2
Unit Values 15
Equitable Life's Pending Name Change 15
Custodian and Independent Auditors 15
Distribution of the Contracts 15
Financial Statements 16
How to obtain an Equitable Accumulator(R) Plus(SM) Statement of Additional
Information for Separate Account No. 49
Send this request form to:
Equitable Accumulator(R) Plus(SM)
P.O. Box 1547
Secaucus, NJ 07096-1547
- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
Please send me an Equitable Accumulator(R) Plus(SM) SAI for Separate Account No.
49 dated May 1, 2004.
- --------------------------------------------------------------------------------
Name
- --------------------------------------------------------------------------------
Address
- --------------------------------------------------------------------------------
City State Zip
(SAI 10AMLF(05/03))
X00681/Plus '04 Series
Equitable Accumulator(R) Select(SM)
A combination variable and fixed deferred annuity contract
PROSPECTUS DATED MAY 1, 2004
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. You should read the prospectuses for each
Trust which contain important information about the portfolios.
- --------------------------------------------------------------------------------
WHAT IS THE EQUITABLE ACCUMULATOR(R) SELECT(SM)
Equitable Accumulator(R) Select(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 offers income
and death benefit protection. It also offers a number of payout options. You
invest to accumulate value on a tax-deferred basis in one or more of our
variable investment options, the guaranteed interest option or fixed maturity
options ("investment options"). There is no withdrawal charge under the
contract. Certain features and benefits described in this Prospectus may vary
in your state; all features and benefits may not be available in all contracts
or in all states. Please see Appendix VI later in this Prospectus for more
information on state availability and/or variations of certain features and
benefits.
- --------------------------------------------------------------------------------
Variable investment options
- --------------------------------------------------------------------------------
o AXA Aggressive Allocation(1) o EQ/Bernstein Diversified Value
o AXA Conservative Allocation(1) o EQ/Calvert Socially Responsible
o AXA Conservative-Plus Allocation(1) o EQ/Capital Guardian International
o AXA Moderate Allocation(1) o EQ/Capital Guardian Research
o AXA Moderate-Plus Allocation(1) o EQ/Capital Guardian U.S. Equity
o AXA Premier VIP Aggressive Equity o EQ/Emerging Markets Equity
o AXA Premier VIP Core Bond o EQ/Equity 500 Index
o AXA Premier VIP Health Care o EQ/Evergreen Omega
o AXA Premier VIP High Yield o EQ/FI Mid Cap
o AXA Premier VIP International Equity o EQ/FI Small/Mid Cap Value
o AXA Premier VIP Large Cap Core o EQ/J.P. Morgan Core Bond
Equity o EQ/Janus Large Cap Growth
o AXA Premier VIP Large Cap Growth o EQ/Lazard Small Cap Value
o AXA Premier VIP Large Cap Value o EQ/Marsico Focus
o AXA Premier VIP Small/Mid Cap o EQ/Mercury Basic Value Equity
Growth o EQ/Mercury International Value
o AXA Premier VIP Small/Mid Cap Value o EQ/MFS Emerging Growth Companies
o AXA Premier VIP Technology o EQ/MFS Investors Trust
o EQ/Alliance Common Stock o EQ/Money Market
o EQ/Alliance Growth and Income o EQ/Putnam Growth & Income Value
o EQ/Alliance Intermediate o EQ/Putnam Voyager
Government Securities o EQ/Small Company Index
o EQ/Alliance International o EQ/Technology(2)
o EQ/Alliance Premier Growth o Laudus Rosenberg VIT Value Long/
o EQ/Alliance Quality Bond Short Equity(3)
o EQ/Alliance Small Cap Growth o U.S. Real Estate -- Class II
- --------------------------------------------------------------------------------
(1) The "AXA Allocation" portfolios.
(2) Subject to shareholder approval, on or about May 14, 2004, we anticipate
that the EQ/Technology investment option (the "replaced option"), which
invests in a corresponding portfolio of EQ Advisors Trust, will be merged
into the AXA Premier VIP Technology investment option (the "surviving
option"), which invests in a corresponding portfolio of AXA Premier VIP
Trust. At that time, we will move the assets in the replaced option into
the surviving option and all allocation elections to the replaced option
will be considered allocations to the surviving option.
(3) Formerly named "AXA Rosenberg VIT Value Long/Short Equity."
You may allocate amounts to any of the variable investment options. Each
variable investment option is a subaccount of Separate Account No. 49. Each
variable investment option, in turn, invests in a corresponding securities
portfolio of EQ Advisors Trust, AXA Premier VIP Trust, The Universal
Institutional Funds, Inc. or Barr Rosenberg Variable Insurance 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 ("Rollover
IRA") or Roth IRA ("Roth Conversion IRA").
o Traditional and Roth Inherited IRA beneficiary continuation contract
("Inherited IRA").
o An Internal Revenue Code Section 403(b) Tax-Sheltered Annuity ("TSA") --
("Rollover TSA").
A contribution of at least $25,000 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, 2004, is part of the registration statement.
The SAI is available free of charge. You may request one by writing to our
processing office or calling 1-800-789-7771. 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.
X00680/Select '04 Series
(R-4/15)
Contents of this Prospectus
- --------------------------------------------------------------------------------
EQUITABLE ACCUMULATOR(R) SELECT(SM)
- --------------------------------------------------------------------------------
Index of key words and phrases 4
Who is Equitable Life? 5
How to reach us 6
Equitable Accumulator(R) Select(SM) at a glance -- key features 8
- --------------------------------------------------------------------------------
FEE TABLE 11
- --------------------------------------------------------------------------------
Example 14
Condensed financial information 17
- --------------------------------------------------------------------------------
1. CONTRACT FEATURES AND BENEFITS 18
- --------------------------------------------------------------------------------
How you can purchase and contribute to your contract 18
Owner and annuitant requirements 20
How you can make your contributions 20
What are your investment options under the contract? 20
Allocating your contributions 26
Your benefit base 28
Annuity purchase factors 29
Our Guaranteed minimum income benefit option 29
Guaranteed minimum death benefit 31
Inherited IRA beneficiary continuation contract 32
Your right to cancel within a certain number of days 33
- --------------------------------------------------------------------------------
2. DETERMINING YOUR CONTRACT'S VALUE 34
- --------------------------------------------------------------------------------
Your account value and cash value 34
Your contract's value in the variable investment options 34
Your contract's value in the guaranteed interest option 34
Your contract's value in the fixed maturity options 34
Termination of your contract 34
- --------------------------------------------------------------------------------
3. TRANSFERRING YOUR MONEY AMONG
INVESTMENT OPTIONS 35
- --------------------------------------------------------------------------------
Transferring your account value 35
Disruptive transfer activity 35
Rebalancing your account value 36
- ----------------------
"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
- --------------------------------------------------------------------------------
4. ACCESSING YOUR MONEY 37
- --------------------------------------------------------------------------------
Withdrawing your account value 37
How withdrawals are taken from your account value 38
How withdrawals (and transfers out of the Special 10 year fixed
maturity option) affect your Guaranteed minimum income benefit,
Guaranteed minimum death benefit and Guaranteed principal
benefit option 2 38
Loans under Rollover TSA contracts 38
Surrendering your contract to receive its cash value 39
When to expect payments 39
Your annuity payout options 39
- --------------------------------------------------------------------------------
5. CHARGES AND EXPENSES 42
- --------------------------------------------------------------------------------
Charges that Equitable Life deducts 42
Charges that the Trusts deduct 44
Group or sponsored arrangements 44
Other distribution arrangements 44
- --------------------------------------------------------------------------------
6. PAYMENT OF DEATH BENEFIT 45
- --------------------------------------------------------------------------------
Your beneficiary and payment of benefit 45
How death benefit payment is made 45
Beneficiary continuation option 46
- --------------------------------------------------------------------------------
7. TAX INFORMATION 49
- --------------------------------------------------------------------------------
Overview 49
Buying a contract to fund a retirement arrangement 49
Transfers among investment options 49
Taxation of nonqualified annuities 49
Individual retirement arrangements (IRAs) 51
Tax-Sheltered Annuity contracts (TSAs) 53
Federal and state income tax withholding and
information reporting 54
Impact of taxes to Equitable Life 55
- --------------------------------------------------------------------------------
8. MORE INFORMATION 56
- --------------------------------------------------------------------------------
About our Separate Account No. 49 56
About the Trusts 56
About our fixed maturity options 56
About the general account 57
About other methods of payment 57
Dates and prices at which contract events occur 58
About your voting rights 59
About legal proceedings 59
About our independent auditors 59
Financial statements 59
Transfers of ownership, collateral assignments, loans and borrowing 59
Distribution of the contracts 59
- --------------------------------------------------------------------------------
9. INCORPORATION OF CERTAIN DOCUMENTS BY REFERENCE 61
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
APPENDICES
- --------------------------------------------------------------------------------
I -- Condensed financial information A-1
II -- Market value adjustment example B-1
III -- Enhanced death benefit example C-1
IV -- Hypothetical illustrations D-1
V -- Guaranteed principal benefit example E-1
VI -- State contract availability and/or variations of certain
features and benefits F-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 in
Term Prospectus
12 month Dollar Cost Averaging 27
account value 34
administrative charge 42
annual administrative charge 42
annual ratchet death benefit 31
annuitant 18
annuity maturity date 41
annuity payout options 39
annuity purchase factors 29
automatic investment program 58
beneficiary 45
Beneficiary continuation option ("BCO") 46
benefit base 28
business day 58
cash value 34
charges for state premium and other applicable taxes 43
contract date 9
contract date anniversary 9
contract year 9
contributions to traditional IRAs 52
regular contributions 52
rollovers and transfers 52
disruptive transfer activity 35
distribution charge 42
EQAccess 6
ERISA 39
Fixed-dollar option 28
fixed maturity options 25
free look 33
general account 57
general dollar cost averaging 28
guaranteed interest option 25
Guaranteed minimum death benefit 31
Guaranteed minimum income benefit 29
Guaranteed minimum income benefit charge 43
Guaranteed principal benefits 26
IRA cover
IRS 49
Inherited IRA cover
investment options cover
Investment Simplifier 28
Lifetime minimum distribution withdrawals 38
loan reserve account 39
loans under Rollover TSA 38
lump sum withdrawals 37
market adjusted amount 25
market timing 35
maturity dates 25
market value adjustment 25
maturity value 25
Mortality and expense risks charge 42
NQ cover
portfolio cover
processing office 6
Protection Plus 31
Protection Plus charge 43
rate to maturity 25
Rebalancing 36
Rollover IRA cover
roll-up death benefit 28
Roth IRA 51
SAI cover
SEC cover
self-directed allocation 26
Separate Account 49 56
Spousal protection 46
Standard death benefit 28
substantially equal withdrawals 37
Successor owner and annuitant 45
Systematic withdrawals 37
TOPS 6
Trusts cover
traditional IRA 51
TSA cover
unit 34
variable investment options 20
wire transmittals and electronic applications 57
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 use different words, they have the same meaning in this Prospectus as in the
contract. Your financial professional can provide further explanation about
your contract or supplemental materials.
- -----------------------------------------------------------------------------------------------------------------------
Prospectus Contract or Supplemental Materials
- -----------------------------------------------------------------------------------------------------------------------
fixed maturity options Guarantee Periods (Guaranteed Fixed Interest Accounts in supplemental materials)
variable investment options Investment Funds
account value Annuity Account Value
rate to maturity Guaranteed Rates
unit Accumulation Unit
Guaranteed minimum death benefit Guaranteed death benefit
Guaranteed minimum income benefit Guaranteed Income Benefit
guaranteed interest option Guaranteed Interest Account
- -----------------------------------------------------------------------------------------------------------------------
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 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
$508.31 billion in assets as of December 31, 2003. 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.
Effective on or about September 7, 2004, we expect, subject to regulatory
approval, to change the name of "The Equitable Life Assurance Society of the
United States" to "AXA Equitable Life Insurance Company." When the name change
becomes effective, all references in any current prospectus, prospectus
supplement or statement of additional information to "The Equitable Life
Assurance Society of the United States" will become references to "AXA
Equitable Life Insurance Company." Accordingly, all references to "Equitable
Life" or "Equitable" will become references to "AXA Equitable."
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 CONTRIBUTIONS SENT BY REGULAR MAIL
- --------------------------------------------------------------------------------
Equitable Accumulator(R) Select(SM)
P.O. Box 13014
Newark, NJ 07188-0014
- --------------------------------------------------------------------------------
FOR CONTRIBUTIONS SENT BY EXPRESS DELIVERY
- --------------------------------------------------------------------------------
Equitable Accumulator(R) Select(SM)
c/o Bank One, N.A.
300 Harmon Meadow Boulevard, 3rd Floor
Attn: Box 13014
Secaucus, NJ 07094
- --------------------------------------------------------------------------------
FOR ALL OTHER COMMUNICATIONS (E.G., REQUESTS FOR TRANSFERS, WITHDRAWALS,
OR REQUIRED NOTICES) SENT BY REGULAR MAIL
- --------------------------------------------------------------------------------
Equitable Accumulator(R) Select(SM)
P.O. Box 1547
Secaucus, NJ 07096-1547
- --------------------------------------------------------------------------------
FOR ALL OTHER COMMUNICATIONS (E.G., REQUESTS FOR TRANSFERS, WITHDRAWALS,
OR REQUIRED NOTICES) SENT BY EXPRESS DELIVERY
- --------------------------------------------------------------------------------
Equitable Accumulator(R) Select(SM)
200 Plaza Drive, 4th Floor
Secaucus, NJ 07094
- --------------------------------------------------------------------------------
REPORTS WE PROVIDE:
- --------------------------------------------------------------------------------
o written confirmation of financial transactions;
o statement of your contract values at the close of each calendar year, and any
calendar quarter in which there was a transaction; and
o annual statement of your contract values as of the close of the contract
year, including notification of eligibility to exercise the guaranteed
minimum income benefit, if applicable.
- --------------------------------------------------------------------------------
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 (not available through
EQAccess);
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 investment
options;
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 1-888-909-7770. If you are a client with AXA
Advisors, you may use EQAccess by visiting our web site at
http://www.axaonline.com and clicking on EQAccess. All other clients may access
EQAccess by visiting our other web site at http://www.equitable.com. 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 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 (1-800-789-7771) to speak with one of our
customer service representatives. Our customer service representatives are
available on any business day from 8:30 a.m. until 5:30 p.m., Eastern time.
WE REQUIRE THAT THE FOLLOWING TYPES OF COMMUNICATIONS BE ON SPECIFIC FORMS WE
PROVIDE FOR THAT PURPOSE:
(1) authorization for telephone transfers by your financial professional
(available only for contracts distributed through AXA Distributors);
(2) conversion of a traditional IRA to a Roth Conversion IRA contract;
(3) election of the automatic investment program;
6 Who is Equitable Life?
(4) election of the rebalancing program;
(5) requests for loans under Rollover TSA contracts;
(6) spousal consent for loans under Rollover TSA contracts;
(7) requests for withdrawals or surrenders from Rollover TSA
contracts;
(8) tax withholding elections;
(9) election of the beneficiary continuation option;
(10) IRA contribution recharacterizations;
(11) certain section 1035 exchanges;
(12) direct transfers; and
(13) exercise of the Guaranteed minimum income benefit.
WE ALSO HAVE SPECIFIC FORMS THAT WE RECOMMEND YOU USE FOR THE FOLLOWING TYPES
OF REQUESTS:
(1) address changes;
(2) beneficiary changes;
(3) transfers between investment options;
(4) contract surrender and withdrawal requests;
(5) death claims;
(6) general dollar cost averaging (including the fixed dollar and
interest sweep options); and
(7) 12 month dollar cost averaging.
TO CANCEL OR CHANGE 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 (including the fixed dollar and
interest sweep options);
(3) rebalancing;
(4) 12 month dollar cost averaging;
(5) substantially equal withdrawals;
(6) systematic withdrawals; and
(7) 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
Equitable Accumulator(R) Select(SM) at a glance -- key features
- --------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
Professional investment Equitable Accumulator(R) Select(SM)'s variable investment options invest in different portfolios
management managed by professional investment advisers.
- ------------------------------------------------------------------------------------------------------------------------------------
Fixed maturity options o Fixed maturity options with maturities ranging from approximately 1 to 10 years (subject to
availability).
o Each fixed maturity option offers a guarantee of principal and interest rate if you hold it to
maturity.
o Special 10 year fixed maturity option (available under Guaranteed principal benefit option 2 only).
----------------------------------------------------------------------------------------------------------
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. If you withdraw or transfer only a portion
of a fixed maturity amount, 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 also applies.
- ------------------------------------------------------------------------------------------------------------------------------------
Guaranteed interest o Principal and interest guarantees.
option
o Interest rates set periodically.
- ------------------------------------------------------------------------------------------------------------------------------------
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), or 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 compared 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 and in the SAI.)
- ------------------------------------------------------------------------------------------------------------------------------------
Guaranteed minimum The Guaranteed minimum income benefit provides income protection for you during the annuitant's life
income benefit once the owner elects to annuitize the contract.
- ------------------------------------------------------------------------------------------------------------------------------------
Contribution amounts o Initial minimum: $25,000
o Additional minimum: $500 (NQ and Rollover TSA)
$100 monthly and $300 quarterly under our automatic investment program
(NQ contracts)
$1,000 (Inherited IRA contracts)
$50 (IRA contracts)
Maximum contribution limitations may apply. In general, contributions are limited to $1.5 million
($500,000 for owners or annuitants who are age 81 and older at contract issue).
- ------------------------------------------------------------------------------------------------------------------------------------
Access to your money o Lump sum withdrawals
o Several withdrawal options on a periodic basis
o Loans under Rollover TSA contracts
o Contract surrender
You may incur income tax and a tax penalty.
- ------------------------------------------------------------------------------------------------------------------------------------
Payout options o Fixed annuity payout options
o Variable Immediate Annuity payout options
o Income Manager(R) payout options
- ------------------------------------------------------------------------------------------------------------------------------------
8 Equitable Accumulator(R) Select(SM) at a glance -- key features
- ------------------------------------------------------------------------------------------------------------------------------------
Additional features o Guaranteed minimum death benefit options
o Guaranteed principal benefit options
o Dollar cost averaging
o Automatic investment program
o Account value rebalancing (quarterly, semiannually and annually)
o Free transfers
o Protection Plus, an optional death benefit available under certain contracts
o Spousal protection
o Successor owner/annuitant
o Beneficiary continuation option
- ------------------------------------------------------------------------------------------------------------------------------------
Fees and charges o Daily charges on amounts invested in the variable investment options for mortality and expense risks,
administrative charges and distribution charges at an annual rate of 1.70%.
o The charges for the Guaranteed minimum death benefits range from 0.0% to 0.60%, annually, of the
applicable benefit base. The benefit base is described under "Your benefit base" in "Contract features
and benefits" later in this Prospectus.
o Annual 0.65% of the applicable benefit base charge for the optional Guaranteed minimum income benefit
until you exercise the benefit, elect another annuity payout option or the contract date anniversary
after the annuitant reaches age 85, whichever occurs first.
o An annual charge for the optional Guaranteed principal benefit option 2 deducted the first 10 contract
date anniversaries equal to 0.50% of account value.
o If your account value at the end of the contract year is less than $50,000, we deduct an annual
administrative charge equal to $30, or during the first two contract years, 2% of your account value,
if less. If your account value, on the contract date anniversary, is $50,000 or more, we will not
deduct the charge.
o Annual 0.35% Protection Plus charge for this optional death benefit.
o No sales charge deducted at the time you make contributions and no withdrawal charge.
----------------------------------------------------------------------------------------------------------
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." For example, if your contract date is May 1, your contract
date anniversary is April 30.
----------------------------------------------------------------------------------------------------------
o We deduct a charge designed to approximate certain taxes that may be imposed on us, such as premium
taxes in your state. This 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 the Variable Immediate Annuity
payout options.
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 0.10% to 1.50%
annually, 12b-1 fees of either 0.25% or 0.35% annually and other expenses.
- ------------------------------------------------------------------------------------------------------------------------------------
Annuitant issue ages NQ: 0-85
Rollover IRA, Roth Conversion IRA and Rollover TSA: 20-85
Inherited IRA: 0-70
- ------------------------------------------------------------------------------------------------------------------------------------
The above is not a complete description of all material provisions of the
contract. In some cases, restrictions or exceptions apply. Also, all features
of the contract are not necessarily available in your state or at certain ages.
Please see Appendix VI later in this Prospectus for more information on state
availability and/or variations of certain features and benefits.
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 questions.
Equitable Accumulator(R) Select(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, credits, fees and/or charges that are
different from those in the contracts 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 Equitable Accumulator(R) Select(SM) at a glance -- key features
Fee table
- --------------------------------------------------------------------------------
The following tables describe the fees and expenses that you will pay when
buying and owning the contract. Each of the charges and expenses is more fully
described in "Charges and expenses" later in this Prospectus.
The first table describes fees and expenses that you will pay if you purchase a
Variable Immediate Annuity payout option. Charges designed to approximate
certain taxes that may be imposed on us, such as premium taxes in your state,
may also apply. Charges for certain features shown in the fee table are
mutually exclusive.
- ------------------------------------------------------------------------------------------------------------------------------------
Charges we deduct from your account value at the time you request certain transactions
- ------------------------------------------------------------------------------------------------------------------------------------
Charge if you elect a Variable Immediate Annuity payout option $ 350
- ------------------------------------------------------------------------------------------------------------------------------------
The next table describes the fees and expenses that you will pay periodically
during the time that you own the contract, not including the underlying trust
portfolio fees and expenses.
- ------------------------------------------------------------------------------------------------------------------------------------
Charges we deduct from your variable investment options expressed as an annual percentage of daily net assets
- ------------------------------------------------------------------------------------------------------------------------------------
Mortality and expense risks 1.10%
Administrative 0.25%
Distribution 0.35%
Total annual expenses -------
1.70%
- ------------------------------------------------------------------------------------------------------------------------------------
Charges we deduct from your account value on each contract date anniversary
- ------------------------------------------------------------------------------------------------------------------------------------
Maximum annual administrative charge
If your account value on a contract date anniversary is less than
$50,000(1) $ 30
If your account value on a contract date anniversary is $50,000
or more $ 0
- ------------------------------------------------------------------------------------------------------------------------------------
Charges we deduct from your account value each year if you elect the optional benefit
- ------------------------------------------------------------------------------------------------------------------------------------
Guaranteed minimum death benefit charge (calculated as a
percentage of the applicable benefit base. Deducted annually(2) on
each contract date anniversary for which the benefit is in effect.)
Standard death benefit 0.00%
Annual Ratchet to age 85 0.25% of the Annual Ratchet to age 85 benefit base
Greater of 6% Roll up to age 85 or Annual Ratchet to age 85 0.60% of the greater of 6% Roll up to age 85 benefit
base or the Annual Ratchet to age 85 benefit base, as
applicable
- ------------------------------------------------------------------------------------------------------------------------------------
Guaranteed principal benefit charge for option 2 (calculated as
a percentage of the account value. Deducted annually(2) on the first
10 contract date anniversaries.) 0.50%
- ------------------------------------------------------------------------------------------------------------------------------------
Guaranteed minimum income benefit charge (calculated as a
percentage of the applicable benefit base. Deducted annually(2) on
each contract date anniversary for which the benefit is in effect.) 0.65%
- ------------------------------------------------------------------------------------------------------------------------------------
Protection Plus benefit charge (calculated as a percentage of the
account value. Deducted annually(2) on each contract date anniversary
for which the benefit is in effect.) 0.35%
- ------------------------------------------------------------------------------------------------------------------------------------
Net loan interest charge -- Rollover TSA contracts only (calculated
and deducted daily as a percentage of the outstanding loan amount) 2.00%(3)
- ------------------------------------------------------------------------------------------------------------------------------------
Fee table 11
You also bear your proportionate share of all fees and expenses paid by a
"Portfolio" that corresponds to any variable investment option you are using.
This table shows the lowest and highest total operating expenses charged by any
of the Portfolios that you will pay periodically during the time that you own
the contract. These fees and expenses are reflected in the Portfolio's net
asset value each day. Therefore, they reduce the investment return of the
Portfolio and the related variable investment option. Actual fees and expenses
are likely to fluctuate from year to year. More detail concerning each
Portfolio's fees and expenses is contained in the Trust prospectus for the
Portfolio.
- ------------------------------------------------------------------------------------------------------------------------------------
Portfolio operating expenses expressed as an annual percentage of daily net assets
- ------------------------------------------------------------------------------------------------------------------------------------
Total Annual Portfolio Operating Expenses for 2003 (expenses that are deducted Lowest Highest
from Portfolio assets including management fees, 12b-1 fees, service fees, ------ -------
and/or other expenses)(4) 0.56% 10.23%
This table shows the fees and expenses for 2003 as an annual percentage of each
Portfolio's daily average net assets.
- ------------------------------------------------------------------------------------------------------------------------------------
Manage-
ment 12b-1 Other
Portfolio Name Fees(5) Fees(6) Expenses(7)
- ------------------------------------------------------------------------------------------------------------------------------------
AXA PREMIER VIP TRUST:
- ------------------------------------------------------------------------------------------------------------------------------------
AXA Aggressive Allocation 0.10% 0.25% 5.91%
AXA Conservative Allocation 0.10% 0.25% 9.04%
AXA Conservative-Plus Allocation 0.10% 0.25% 4.13%
AXA Moderate Allocation 0.10% 0.25% 0.39%
AXA Moderate-Plus Allocation 0.10% 0.25% 1.77%
AXA Premier VIP Aggressive Equity 0.62% 0.25% 0.15%
AXA Premier VIP Core Bond 0.60% 0.25% 0.26%
AXA Premier VIP Health Care 1.20% 0.25% 0.48%
AXA Premier VIP High Yield 0.59% 0.25% 0.16%
AXA Premier VIP International Equity 1.05% 0.25% 0.73%
AXA Premier VIP Large Cap Core Equity 0.90% 0.25% 0.52%
AXA Premier VIP Large Cap Growth 0.90% 0.25% 0.43%
AXA Premier VIP Large Cap Value 0.90% 0.25% 0.43%
AXA Premier VIP Small/Mid Cap Growth 1.10% 0.25% 0.35%
AXA Premier VIP Small/Mid Cap Value 1.10% 0.25% 0.31%
AXA Premier VIP Technology 1.20% 0.25% 0.83%
- ------------------------------------------------------------------------------------------------------------------------------------
EQ ADVISORS TRUST:
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/Alliance Common Stock 0.48% 0.25% 0.06%
EQ/Alliance Growth and Income 0.57% 0.25% 0.06%
EQ/Alliance Intermediate Government Securities 0.49% 0.25% 0.08%
EQ/Alliance International 0.74% 0.25% 0.13%
EQ/Alliance Premier Growth 0.90% 0.25% 0.05%
EQ/Alliance Quality Bond 0.52% 0.25% 0.06%
EQ/Alliance Small Cap Growth 0.75% 0.25% 0.07%
EQ/Bernstein Diversified Value 0.64% 0.25% 0.06%
EQ/Calvert Socially Responsible 0.65% 0.25% 0.55%
EQ/Capital Guardian International 0.85% 0.25% 0.21%
EQ/Capital Guardian Research 0.65% 0.25% 0.07%
EQ/Capital Guardian U.S. Equity 0.65% 0.25% 0.07%
EQ/Emerging Markets Equity 1.15% 0.25% 0.40%
EQ/Equity 500 Index 0.25% 0.25% 0.06%
EQ/Evergreen Omega 0.65% 0.25% 0.25%
EQ/FI Mid Cap 0.70% 0.25% 0.08%
EQ/FI Small/Mid Cap Value 0.75% 0.25% 0.10%
EQ/Janus Large Cap Growth 0.90% 0.25% 0.09%
EQ/J.P. Morgan Core Bond 0.44% 0.25% 0.08%
EQ/Lazard Small Cap Value 0.75% 0.25% 0.10%
EQ/Marsico Focus 0.90% 0.25% 0.07%
EQ/Mercury Basic Value Equity 0.60% 0.25% 0.07%
EQ/Mercury International Value 0.85% 0.25% 0.16%
EQ/MFS Emerging Growth Companies 0.65% 0.25% 0.07%
EQ/MFS Investors Trust 0.60% 0.25% 0.11%
EQ/Money Market 0.33% 0.25% 0.06%
Total Net Total
Annual Fee Waiv- Annual
Underlying Expenses ers and/or Expenses
Portfolio (Before Expense After
Fees and Expense Reimburse- Expense
Portfolio Name Expenses(8) Limitation) ments(9) Limitations
- ------------------------------------------------------------------------------------------------------------------------------------
AXA PREMIER VIP TRUST:
- ------------------------------------------------------------------------------------------------------------------------------------
AXA Aggressive Allocation 1.08% 7.34% (5.98)% 1.36%
AXA Conservative Allocation 0.84% 10.23% (9.13)% 1.10%
AXA Conservative-Plus Allocation 0.88% 5.36% (4.21)% 1.15%
AXA Moderate Allocation 0.86% 1.60% (0.43)% 1.17%
AXA Moderate-Plus Allocation 1.13% 3.25% (1.87)% 1.38%
AXA Premier VIP Aggressive Equity -- 1.02% -- 1.02%
AXA Premier VIP Core Bond -- 1.11% (0.16)% 0.95%
AXA Premier VIP Health Care -- 1.93% (0.08)% 1.85%
AXA Premier VIP High Yield -- 1.00% -- 1.00%
AXA Premier VIP International Equity -- 2.03% (0.23)% 1.80%
AXA Premier VIP Large Cap Core Equity -- 1.67% (0.32)% 1.35%
AXA Premier VIP Large Cap Growth -- 1.58% (0.23)% 1.35%
AXA Premier VIP Large Cap Value -- 1.58% (0.23)% 1.35%
AXA Premier VIP Small/Mid Cap Growth -- 1.70% (0.10)% 1.60%
AXA Premier VIP Small/Mid Cap Value -- 1.66% (0.06)% 1.60%
AXA Premier VIP Technology -- 2.28% (0.43)% 1.85%
- ------------------------------------------------------------------------------------------------------------------------------------
EQ ADVISORS TRUST:
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/Alliance Common Stock -- 0.79% -- 0.79%
EQ/Alliance Growth and Income -- 0.88% -- 0.88%
EQ/Alliance Intermediate Government Securities -- 0.82% -- 0.82%
EQ/Alliance International -- 1.12% (0.02)% 1.10%
EQ/Alliance Premier Growth -- 1.20% (0.04)% 1.16%
EQ/Alliance Quality Bond -- 0.83% -- 0.83%
EQ/Alliance Small Cap Growth -- 1.07% -- 1.07%
EQ/Bernstein Diversified Value -- 0.95% 0.00% 0.95%
EQ/Calvert Socially Responsible -- 1.45% (0.40)% 1.05%
EQ/Capital Guardian International -- 1.31% (0.11)% 1.20%
EQ/Capital Guardian Research -- 0.97% (0.02)% 0.95%
EQ/Capital Guardian U.S. Equity -- 0.97% (0.02)% 0.95%
EQ/Emerging Markets Equity -- 1.80% 0.00% 1.80%
EQ/Equity 500 Index -- 0.56% -- 0.56%
EQ/Evergreen Omega -- 1.15% (0.20)% 0.95%
EQ/FI Mid Cap -- 1.03% (0.03)% 1.00%
EQ/FI Small/Mid Cap Value -- 1.10% 0.00% 1.10%
EQ/Janus Large Cap Growth -- 1.24% (0.09)% 1.15%
EQ/J.P. Morgan Core Bond -- 0.77% 0.00% 0.77%
EQ/Lazard Small Cap Value -- 1.10% 0.00% 1.10%
EQ/Marsico Focus -- 1.22% (0.07)% 1.15%
EQ/Mercury Basic Value Equity -- 0.92% 0.00% 0.92%
EQ/Mercury International Value -- 1.26% (0.01)% 1.25%
EQ/MFS Emerging Growth Companies -- 0.97% -- 0.97%
EQ/MFS Investors Trust -- 0.96% (0.01)% 0.95%
EQ/Money Market -- 0.64% -- 0.64%
- ------------------------------------------------------------------------------------------------------------------------------------
12 Fee table
- ------------------------------------------------------------------------------------------------------------------------------------
Manage-
ment 12b-1 Other
Portfolio Name Fees(5) Fees(6) Expenses(7)
- ------------------------------------------------------------------------------------------------------------------------------------
EQ ADVISORS TRUST:
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/Putnam Growth & Income Value 0.60% 0.25% 0.10%
EQ/Putnam Voyager 0.65% 0.25% 0.13%
EQ/Small Company Index 0.25% 0.25% 0.35%
EQ/Technology 0.90% 0.25% 0.09%
- ------------------------------------------------------------------------------------------------------------------------------------
BARR ROSENBERG VARIABLE INSURANCE TRUST:
- ------------------------------------------------------------------------------------------------------------------------------------
Laudus Rosenberg VIT Value Long/Short Equity 1.50% 0.25% 5.80%
- ------------------------------------------------------------------------------------------------------------------------------------
THE UNIVERSAL INSTITUTIONAL FUNDS, INC.:
- ------------------------------------------------------------------------------------------------------------------------------------
U.S. Real Estate -- Class II 0.80% 0.35% 0.31%
- ------------------------------------------------------------------------------------------------------------------------------------
Total Net Total
Annual Fee Waiv- Annual
Underlying Expenses ers and/or Expenses
Portfolio (Before Expense After
Fees and Expense Reimburse- Expense
Portfolio Name Expenses(8) Limitation) ments(9) Limitations
- ------------------------------------------------------------------------------------------------------------------------------------
EQ ADVISORS TRUST:
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/Putnam Growth & Income Value -- 0.95% 0.00% 0.95%
EQ/Putnam Voyager -- 1.03% (0.08)% 0.95%
EQ/Small Company Index -- 0.85% 0.00% 0.85%
EQ/Technology -- 1.24% (0.09)% 1.15%
- ------------------------------------------------------------------------------------------------------------------------------------
BARR ROSENBERG VARIABLE INSURANCE TRUST:
- ------------------------------------------------------------------------------------------------------------------------------------
Laudus Rosenberg VIT Value Long/Short Equity -- 7.55% (4.57)% 2.98%
- ------------------------------------------------------------------------------------------------------------------------------------
THE UNIVERSAL INSTITUTIONAL FUNDS, INC.:
- ------------------------------------------------------------------------------------------------------------------------------------
U.S. Real Estate -- Class II -- 1.46% (0.11)% 1.35%
- ------------------------------------------------------------------------------------------------------------------------------------
(1) During the first two contract years this charge, if it applies, is equal
to the lesser of $30 or 2% of your account value. Thereafter, the charge
is $30 for each contract year.
(2) If the contract is surrendered or annuitized or a death benefit is paid
on any date other than the contract date anniversary, we will deduct a pro
rata portion of the charge for that year.
(3) We charge interest on loans under Rollover TSA contracts but also credit
you interest on your loan reserve account. Our net loan interest charge is
determined by the excess between the interest rate we charge over the
interest rate we credit. See "Loans under Rollover TSA contracts" later in
this Prospectus for more information on how the loan interest is
calculated and for restrictions that may apply.
(4) "Total Annual Portfolio Operating Expenses" are based, in part, on
estimated amounts for options added during the fiscal year 2003 and for
the underlying portfolios.
(5) The management fees for each Portfolio cannot be increased without a vote
of that Portfolio's Shareholders. See footnote (9) 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) Other expenses shown are those incurred in 2003. The amounts shown as
"Other Expenses" will fluctuate from year to year depending on actual
expenses. See footnote (9) for any expense limitation agreement
information.
(8) The AXA Allocation variable investment options invest in corresponding
portfolios of the AXA Premier VIP Trust. Each AXA Allocation portfolio in
turn invests in shares of other portfolios of the EQ Advisors Trust and
AXA Premier VIP Trust ("the underlying portfolios"). Amounts shown reflect
each AXA Allocation portfolio's pro rata share of the fees and expenses of
the various underlying portfolios in which it invests. The fees and
expenses have been estimated based on the respective weighted investment
allocations as of 12/31/03. A"-" indicates that the listed portfolio does
not invest in underlying portfolios, i.e., it is not an allocation
portfolio.
(9) The amounts shown reflect any fee waivers and/or expense reimbursements
that applied to each Portfolio. A "-" indicates that there is no expense
limitation in effect. "0.00%" indicates that the expense limitation
arrangement did not result in a fee waiver or reimbursement. Equitable
Life, the investment manager of AXA Premier VIP Trust and EQ Advisors
Trust, has entered into Expense Limitation Agreements with respect to
certain Portfolios, which are effective through April 30, 2005. Under
these agreements Equitable Life has agreed to waive or limit its fees and
assume other expenses of certain Portfolios, if necessary, in an amount
that limits each affected Portfolio's total Annual Expenses (exclusive of
interest, taxes, brokerage commissions, capitalized expenditures and
extraordinary expenses) to not more than specified amounts. Therefore,
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.
Morgan Stanley Investment Management Inc., which does business in certain
instances as "Van Kampen," is the manager of the Universal Institutional
Funds, Inc. -- U.S. Real Estate Portfolio -- Class II and has voluntarily
agreed to reduce its management fee and/or reimburse the Portfolio so that
total annual operating expenses of the Portfolio (exclusive of investment
related expenses, such as foreign country tax expense and interest expense
on amounts borrowed) are not more than specified amounts. Van Kampen
reserves the right to terminate any waiver and/or reimbursement at any
time without notice. Charles Schwab Investment Management, Inc. the
manager of the Barr Rosenberg Variable Insurance Trust -- Laudus Rosenberg
VIT Value Long/Short Equity Portfolio, has voluntarily agreed to reimburse
expenses in excess of specified amounts. See the Prospectus for each
applicable underlying Trust for more information about the arrangements.
In addition, a portion of the brokerage commissions of certain Portfolios
of EQ Advisors Trust Portfolio and AXA Premier VIP Trust Portfolio is used
to reduce the applicable Portfolio's expenses. If the above table
reflected both the expense limitation arrangements plus the portion of the
brokerage commissions used to reduce portfolio expenses, the net expenses
would be as shown in the table below:
- ----------------------------------------------------
Portfolio Name
- ----------------------------------------------------
AXA Aggressive Allocation 0.95%
- ----------------------------------------------------
AXA Conservative Allocation 0.73%
- ----------------------------------------------------
AXA Conservative-Plus Allocation 0.78%
- ----------------------------------------------------
AXA Moderate Allocation 0.79%
- ----------------------------------------------------
AXA Moderate-Plus Allocation 0.99%
- ----------------------------------------------------
AXA Premier VIP Aggressive Equity 0.95%
- ----------------------------------------------------
AXA Premier VIP Health Care 1.84%
- ----------------------------------------------------
AXA Premier VIP International Equity 1.73%
- ----------------------------------------------------
AXA Premier VIP Large Cap Core Equity 1.32%
- ----------------------------------------------------
AXA Premier VIP Large Cap Growth 1.32%
- ----------------------------------------------------
AXA Premier VIP Large Cap Value 1.28%
- ----------------------------------------------------
AXA Premier VIP Small/Mid Cap Growth 1.46%
- ----------------------------------------------------
AXA Premier VIP Small/Mid Cap Value 1.52%
- ----------------------------------------------------
AXA Premier VIP Technology 1.70%
- ----------------------------------------------------
EQ/Alliance Common Stock 0.77%
- ----------------------------------------------------
EQ/Alliance Growth and Income 0.85%
- ----------------------------------------------------
EQ/Alliance Premier Growth 1.15%
- ----------------------------------------------------
EQ/Alliance Small Cap Growth 1.03%
- ----------------------------------------------------
Fee table 13
- ----------------------------------------------------
Portfolio Name
- ----------------------------------------------------
EQ/Calvert Socially Responsible 1.00%
- ----------------------------------------------------
EQ/Capital Guardian International 1.18%
- ----------------------------------------------------
EQ/Capital Guardian Research 0.93%
- ----------------------------------------------------
EQ/Capital Guardian U.S. Equity 0.93%
- ----------------------------------------------------
EQ/Emerging Markets Equity 1.78%
- ----------------------------------------------------
EQ/Evergreen Omega 0.84%
- ----------------------------------------------------
EQ/FI Mid Cap 0.88%
- ----------------------------------------------------
EQ/FI Small/Mid Cap Value 1.04%
- ----------------------------------------------------
EQ/Lazard Small Cap Value 1.00%
- ----------------------------------------------------
EQ/Marsico Focus 1.10%
- ----------------------------------------------------
EQ/Mercury Basic Value Equity 0.91%
- ----------------------------------------------------
EQ/Mercury International Value 1.18%
- ----------------------------------------------------
EQ/MFS Emerging Growth Companies 0.96%
- ----------------------------------------------------
EQ/MFS Investors Trust 0.94%
- ----------------------------------------------------
EQ/Putnam Growth & Income Value 0.93%
- ----------------------------------------------------
EQ/Putnam Voyager 0.93%
- ----------------------------------------------------
EQ/Technology 1.01%
- ----------------------------------------------------
EXAMPLE
This example is intended to help you compare the cost of investing in the
contract with the cost of investing in other variable annuity contracts. These
costs include contract owner transaction expenses, contract fees, separate
account annual expenses, and underlying trust fees and expenses (including the
underlying portfolio fees and expenses).
The example below shows the expenses that a hypothetical contract owner (who
has elected the Guaranteed minimum income benefit with the enhanced death
benefit that provides for the greater of the 6% Roll up to age 85 or the Annual
Ratchet to age 85 and Protection Plus) would pay in the situations illustrated.
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 $1.10 per $10,000.
The fixed maturity options, guaranteed interest option and the 12 month dollar
cost averaging program are not covered by the examples. However, the annual
administrative charge, the charge for any optional benefits and the charge if
you elect a Variable Immediate Annuity payout option do apply to the fixed
maturity options, guaranteed interest option and the 12 month dollar cost
averaging program. 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.
The example assumes that you invest $10,000 in the contract for the time
periods indicated. The example also assumes that your investment has a 5%
return each year. This example 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 example
is not an estimate or guarantee of future investment performance. Although your
actual costs may be higher or lower, based on these assumptions, your costs
would be:
14 Fee table
- ------------------------------------------------------------------------------------------------------------------------------------
If you surrender your contract at the end of the
applicable time period
- ------------------------------------------------------------------------------------------------------------------------------------
1 year 3 years 5 years 10 years
- ------------------------------------------------------------------------------------------------------------------------------------
AXA PREMIER VIP TRUST:
- ------------------------------------------------------------------------------------------------------------------------------------
AXA Aggressive Allocation $ 1,119.86 $ 3,202.50 $ 5,092.90 $ 9,098.40
AXA Conservative Allocation $ 1,422.85 $ 3,944.01 $ 6,088.14 $ 10,158.12
AXA Conservative-Plus Allocation $ 911.72 $ 2,663.52 $ 4,324.74 $ 8,118.44
AXA Moderate Allocation $ 517.25 $ 1,573.76 $ 2,660.77 $ 5,521.47
AXA Moderate-Plus Allocation $ 690.38 $ 2,063.23 $ 3,426.18 $ 6,795.98
AXA Premier VIP Aggressive Equity $ 455.97 $ 1,396.28 $ 2,376.09 $ 5,012.96
AXA Premier VIP Core Bond $ 465.42 $ 1,423.79 $ 2,420.46 $ 5,093.46
AXA Premier VIP Health Care $ 551.51 $ 1,672.03 $ 2,816.76 $ 5,792.19
AXA Premier VIP High Yield $ 453.87 $ 1,390.15 $ 2,366.20 $ 4,994.97
AXA Premier VIP International Equity $ 562.01 $ 1,702.00 $ 2,864.10 $ 5,873.25
AXA Premier VIP Large Cap Core Equity $ 524.21 $ 1,593.80 $ 2,692.66 $ 5,577.28
AXA Premier VIP Large Cap Growth $ 514.76 $ 1,566.61 $ 2,649.37 $ 5,501.47
AXA Premier VIP Large Cap Value $ 514.76 $ 1,566.61 $ 2,649.37 $ 5,501.47
AXA Premier VIP Small/Mid Cap Growth $ 527.36 $ 1,602.85 $ 2,707.05 $ 5,602.39
AXA Premier VIP Small/Mid Cap Value $ 523.16 $ 1,590.78 $ 2,687.86 $ 5,568.89
AXA Premier VIP Technology $ 588.25 $ 1,776.65 $ 2,981.55 $ 6,072.10
- ------------------------------------------------------------------------------------------------------------------------------------
EQ ADVISORS TRUST:
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/Alliance Common Stock $ 431.82 $ 1,325.72 $ 2,261.87 $ 4,803.72
EQ/Alliance Growth and Income $ 441.27 $ 1,353.37 $ 2,306.70 $ 4,886.20
EQ/Alliance Intermediate Government Securities $ 434.97 $ 1,334.94 $ 2,276.83 $ 4,831.30
EQ/Alliance International $ 466.47 $ 1,426.84 $ 2,425.38 $ 5,102.35
EQ/Alliance Premier Growth $ 474.87 $ 1,451.25 $ 2,464.67 $ 5,173.19
EQ/Alliance Quality Bond $ 436.02 $ 1,338.01 $ 2,281.82 $ 4,840.47
EQ/Alliance Small Cap Growth $ 461.22 $ 1,411.57 $ 2,400.76 $ 5,057.78
EQ/Bernstein Diversified Value $ 448.62 $ 1,374.84 $ 2,341.45 $ 4,949.82
EQ/Calvert Socially Responsible $ 501.11 $ 1,527.25 $ 2,586.53 $ 5,390.66
EQ/Capital Guardian International $ 486.42 $ 1,484.74 $ 2,518.45 $ 5,269.59
EQ/Capital Guardian Research $ 450.72 $ 1,380.97 $ 2,351.35 $ 4,967.91
EQ/Capital Guardian U.S. Equity $ 450.72 $ 1,380.97 $ 2,351.35 $ 4,967.91
EQ/Emerging Markets Equity $ 537.86 $ 1,632.97 $ 2,754.89 $ 5,685.49
EQ/Equity 500 Index $ 407.67 $ 1,254.81 $ 2,146.49 $ 4,589.30
EQ/Evergreen Omega $ 469.62 $ 1,436.00 $ 2,440.13 $ 5,128.99
EQ/FI Mid Cap $ 457.02 $ 1,399.34 $ 2,381.03 $ 5,021.94
EQ/FI Small/Mid Cap Value $ 464.37 $ 1,420.74 $ 2,415.54 $ 5,084.55
EQ/J.P. Morgan Core Bond $ 429.72 $ 1,319.57 $ 2,251.88 $ 4,785.28
EQ/Janus Large Cap Growth $ 479.07 $ 1,463.44 $ 2,484.26 $ 5,208.37
EQ/Lazard Small Cap Value $ 464.37 $ 1,420.74 $ 2,415.54 $ 5,084.55
EQ/Marsico Focus $ 476.97 $ 1,457.35 $ 2,474.47 $ 5,190.80
EQ/Mercury Basic Value Equity $ 445.47 $ 1,365.64 $ 2,326.57 $ 4,922.61
EQ/Mercury International Value $ 481.17 $ 1,469.53 $ 2,494.04 $ 5,225.91
EQ/MFS Emerging Growth Companies $ 450.72 $ 1,380.97 $ 2,351.35 $ 4,967.91
EQ/MFS Investors Trust $ 449.67 $ 1,377.90 $ 2,346.40 $ 4,958.87
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
If you annuitize at the end of the applicable time
period
- ------------------------------------------------------------------------------------------------------------------------------------
1 year 3 years 5 years 10 years
- ------------------------------------------------------------------------------------------------------------------------------------
AXA PREMIER VIP TRUST:
- ------------------------------------------------------------------------------------------------------------------------------------
AXA Aggressive Allocation $ 1,469.86 $ 3,552.50 $ 5,442.90 $ 9,448.40
AXA Conservative Allocation $ 1,772.85 $ 4,294.01 $ 6,438.14 $ 10,508.12
AXA Conservative-Plus Allocation $ 1,261.72 $ 3,013.52 $ 4,674.74 $ 8,468.44
AXA Moderate Allocation $ 867.25 $ 1,923.76 $ 3,010.77 $ 5,871.47
AXA Moderate-Plus Allocation $ 1,040.38 $ 2,413.23 $ 3,776.18 $ 7,145.98
AXA Premier VIP Aggressive Equity $ 805.97 $ 1,746.28 $ 2,726.09 $ 5,362.96
AXA Premier VIP Core Bond $ 815.42 $ 1,773.79 $ 2,770.46 $ 5,443.46
AXA Premier VIP Health Care $ 901.51 $ 2,022.03 $ 3,166.76 $ 6,142.19
AXA Premier VIP High Yield $ 803.87 $ 1,740.15 $ 2,716.20 $ 5,344.97
AXA Premier VIP International Equity $ 912.01 $ 2,052.00 $ 3,214.10 $ 6,223.25
AXA Premier VIP Large Cap Core Equity $ 874.21 $ 1,943.80 $ 3,042.66 $ 5,927.28
AXA Premier VIP Large Cap Growth $ 864.76 $ 1,916.61 $ 2,999.37 $ 5,851.47
AXA Premier VIP Large Cap Value $ 864.76 $ 1,916.61 $ 2,999.37 $ 5,851.47
AXA Premier VIP Small/Mid Cap Growth $ 877.36 $ 1,952.85 $ 3,057.05 $ 5,952.39
AXA Premier VIP Small/Mid Cap Value $ 873.16 $ 1,940.78 $ 3,037.86 $ 5,918.89
AXA Premier VIP Technology $ 938.25 $ 2,126.65 $ 3,331.55 $ 6,422.10
- ------------------------------------------------------------------------------------------------------------------------------------
EQ ADVISORS TRUST:
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/Alliance Common Stock $ 781.82 $ 1,675.72 $ 2,611.87 $ 5,153.72
EQ/Alliance Growth and Income $ 791.27 $ 1,703.37 $ 2,656.70 $ 5,236.20
EQ/Alliance Intermediate Government Securities $ 784.97 $ 1,684.94 $ 2,626.83 $ 5,181.30
EQ/Alliance International $ 816.47 $ 1,776.84 $ 2,775.38 $ 5,452.35
EQ/Alliance Premier Growth $ 824.87 $ 1,801.25 $ 2,814.67 $ 5,523.19
EQ/Alliance Quality Bond $ 786.02 $ 1,688.01 $ 2,631.82 $ 5,190.47
EQ/Alliance Small Cap Growth $ 811.22 $ 1,761.57 $ 2,750.76 $ 5,407.78
EQ/Bernstein Diversified Value $ 798.62 $ 1,724.84 $ 2,691.45 $ 5,299.82
EQ/Calvert Socially Responsible $ 851.11 $ 1,877.25 $ 2,936.53 $ 5,740.66
EQ/Capital Guardian International $ 836.42 $ 1,834.74 $ 2,868.45 $ 5,619.59
EQ/Capital Guardian Research $ 800.72 $ 1,730.97 $ 2,701.35 $ 5,317.91
EQ/Capital Guardian U.S. Equity $ 800.72 $ 1,730.97 $ 2,701.35 $ 5,317.91
EQ/Emerging Markets Equity $ 887.86 $ 1,982.97 $ 3,104.89 $ 6,035.49
EQ/Equity 500 Index $ 757.67 $ 1,604.81 $ 2,496.49 $ 4,939.30
EQ/Evergreen Omega $ 819.62 $ 1,786.00 $ 2,790.13 $ 5,478.99
EQ/FI Mid Cap $ 807.02 $ 1,749.34 $ 2,731.03 $ 5,371.94
EQ/FI Small/Mid Cap Value $ 814.37 $ 1,770.74 $ 2,765.54 $ 5,434.55
EQ/J.P. Morgan Core Bond $ 779.72 $ 1,669.57 $ 2,601.88 $ 5,135.28
EQ/Janus Large Cap Growth $ 829.07 $ 1,813.44 $ 2,834.26 $ 5,558.37
EQ/Lazard Small Cap Value $ 814.37 $ 1,770.74 $ 2,765.54 $ 5,434.55
EQ/Marsico Focus $ 826.97 $ 1,807.35 $ 2,824.47 $ 5,540.80
EQ/Mercury Basic Value Equity $ 795.47 $ 1,715.64 $ 2,676.57 $ 5,272.61
EQ/Mercury International Value $ 831.17 $ 1,819.53 $ 2,844.04 $ 5,575.91
EQ/MFS Emerging Growth Companies $ 800.72 $ 1,730.97 $ 2,701.35 $ 5,317.91
EQ/MFS Investors Trust $ 799.67 $ 1,727.90 $ 2,696.40 $ 5,308.87
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
If you do not surrender your contract at the end of
the applicable time period
- ------------------------------------------------------------------------------------------------------------------------------------
1 Year 3 years 5 years 10 years
- ------------------------------------------------------------------------------------------------------------------------------------
AXA PREMIER VIP TRUST:
- ------------------------------------------------------------------------------------------------------------------------------------
AXA Aggressive Allocation $ 1,119.86 $ 3,202.50 $ 5,092.90 $ 9,098.40
AXA Conservative Allocation $ 1,422.85 $ 3,944.01 $ 6,088.14 $ 10,158.12
AXA Conservative-Plus Allocation $ 911.72 $ 2,663.52 $ 4,324.74 $ 8,118.44
AXA Moderate Allocation $ 517.25 $ 1,573.76 $ 2,660.77 $ 5,521.47
AXA Moderate-Plus Allocation $ 690.38 $ 2,063.23 $ 3,426.18 $ 6,795.98
AXA Premier VIP Aggressive Equity $ 455.97 $ 1,396.28 $ 2,376.09 $ 5,012.96
AXA Premier VIP Core Bond $ 465.42 $ 1,423.79 $ 2,420.46 $ 5,093.46
AXA Premier VIP Health Care $ 551.51 $ 1,672.03 $ 2,816.76 $ 5,792.19
AXA Premier VIP High Yield $ 453.87 $ 1,390.15 $ 2,366.20 $ 4,994.97
AXA Premier VIP International Equity $ 562.01 $ 1,702.00 $ 2,864.10 $ 5,873.25
AXA Premier VIP Large Cap Core Equity $ 524.21 $ 1,593.80 $ 2,692.66 $ 5,577.28
AXA Premier VIP Large Cap Growth $ 514.76 $ 1,566.61 $ 2,649.37 $ 5,501.47
AXA Premier VIP Large Cap Value $ 514.76 $ 1,566.61 $ 2,649.37 $ 5,501.47
AXA Premier VIP Small/Mid Cap Growth $ 527.36 $ 1,602.85 $ 2,707.05 $ 5,602.39
AXA Premier VIP Small/Mid Cap Value $ 523.16 $ 1,590.78 $ 2,687.86 $ 5,568.89
AXA Premier VIP Technology $ 588.25 $ 1,776.65 $ 2,981.55 $ 6,072.10
- ------------------------------------------------------------------------------------------------------------------------------------
EQ ADVISORS TRUST:
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/Alliance Common Stock $ 431.82 $ 1,325.72 $ 2,261.87 $ 4,803.72
EQ/Alliance Growth and Income $ 441.27 $ 1,353.37 $ 2,306.70 $ 4,886.20
EQ/Alliance Intermediate Government Securities $ 434.97 $ 1,334.94 $ 2,276.83 $ 4,831.30
EQ/Alliance International $ 466.47 $ 1,426.84 $ 2,425.38 $ 5,102.35
EQ/Alliance Premier Growth $ 474.87 $ 1,451.25 $ 2,464.67 $ 5,173.19
EQ/Alliance Quality Bond $ 436.02 $ 1,338.01 $ 2,281.82 $ 4,840.47
EQ/Alliance Small Cap Growth $ 461.22 $ 1,411.57 $ 2,400.76 $ 5,057.78
EQ/Bernstein Diversified Value $ 448.62 $ 1,374.84 $ 2,341.45 $ 4,949.82
EQ/Calvert Socially Responsible $ 501.11 $ 1,527.25 $ 2,586.53 $ 5,390.66
EQ/Capital Guardian International $ 486.42 $ 1,484.74 $ 2,518.45 $ 5,269.59
EQ/Capital Guardian Research $ 450.72 $ 1,380.97 $ 2,351.35 $ 4,967.91
EQ/Capital Guardian U.S. Equity $ 450.72 $ 1,380.97 $ 2,351.35 $ 4,967.91
EQ/Emerging Markets Equity $ 537.86 $ 1,632.97 $ 2,754.89 $ 5,685.49
EQ/Equity 500 Index $ 407.67 $ 1,254.81 $ 2,146.49 $ 4,589.30
EQ/Evergreen Omega $ 469.62 $ 1,436.00 $ 2,440.13 $ 5,128.99
EQ/FI Mid Cap $ 457.02 $ 1,399.34 $ 2,381.03 $ 5,021.94
EQ/FI Small/Mid Cap Value $ 464.37 $ 1,420.74 $ 2,415.54 $ 5,084.55
EQ/J.P. Morgan Core Bond $ 429.72 $ 1,319.57 $ 2,251.88 $ 4,785.28
EQ/Janus Large Cap Growth $ 479.07 $ 1,463.44 $ 2,484.26 $ 5,208.37
EQ/Lazard Small Cap Value $ 464.37 $ 1,420.74 $ 2,415.54 $ 5,084.55
EQ/Marsico Focus $ 476.97 $ 1,457.35 $ 2,474.47 $ 5,190.80
EQ/Mercury Basic Value Equity $ 445.47 $ 1,365.64 $ 2,326.57 $ 4,922.61
EQ/Mercury International Value $ 481.17 $ 1,469.53 $ 2,494.04 $ 5,225.91
EQ/MFS Emerging Growth Companies $ 450.72 $ 1,380.97 $ 2,351.35 $ 4,967.91
EQ/MFS Investors Trust $ 449.67 $ 1,377.90 $ 2,346.40 $ 4,958.87
- ------------------------------------------------------------------------------------------------------------------------------------
Fee table 15
- ------------------------------------------------------------------------------------------------------------------------------------
If you surrender your contract at the end of the
applicable time period
- ------------------------------------------------------------------------------------------------------------------------------------
1 year 3 years 5 years 10 years
- ------------------------------------------------------------------------------------------------------------------------------------
EQ ADVISORS TRUST:
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/Money Market $ 416.07 $ 1,279.51 $ 2,186.76 $ 4,664.47
EQ/Putnam Growth & Income Value $ 448.62 $ 1,374.84 $ 2,341.45 $ 4,949.82
EQ/Putnam Voyager $ 457.02 $ 1,399.34 $ 2,381.03 $ 5,021.94
EQ/Small Company Index $ 438.12 $ 1,344.16 $ 2,291.78 $ 4,858.80
EQ/Technology $ 479.07 $ 1,463.44 $ 2,484.26 $ 5,208.37
- ------------------------------------------------------------------------------------------------------------------------------------
BARR ROSENBERG VARIABLE INSURANCE TRUST:
- ------------------------------------------------------------------------------------------------------------------------------------
Laudus Rosenberg VIT Value Long/Short Equity $ 1,141.54 $ 3,257.25 $ 5,168.85 $ 9,187.67
- ------------------------------------------------------------------------------------------------------------------------------------
THE UNIVERSAL INSTITUTIONAL FUNDS, INC.:
- ------------------------------------------------------------------------------------------------------------------------------------
U.S. Real Estate -- Class II $ 502.16 $ 1,530.29 $ 2,591.38 $ 5,399.24
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
If you annuitize at the end of the applicable time
period
- ------------------------------------------------------------------------------------------------------------------------------------
1 year 3 years 5 years 10 years
- ------------------------------------------------------------------------------------------------------------------------------------
EQ ADVISORS TRUST:
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/Money Market $ 766.07 $ 1,629.51 $ 2,536.76 $ 5,014.47
EQ/Putnam Growth & Income Value $ 798.62 $ 1,724.84 $ 2,691.45 $ 5,299.82
EQ/Putnam Voyager $ 807.02 $ 1,749.34 $ 2,731.03 $ 5,371.94
EQ/Small Company Index $ 788.12 $ 1,694.16 $ 2,641.78 $ 5,208.80
EQ/Technology $ 829.07 $ 1,813.44 $ 2,834.26 $ 5,558.37
- ------------------------------------------------------------------------------------------------------------------------------------
BARR ROSENBERG VARIABLE INSURANCE TRUST:
- ------------------------------------------------------------------------------------------------------------------------------------
Laudus Rosenberg VIT Value Long/Short Equity $ 1,491.54 $ 3,607.25 $ 5,518.85 $ 9,537.67
- ------------------------------------------------------------------------------------------------------------------------------------
THE UNIVERSAL INSTITUTIONAL FUNDS, INC.:
- ------------------------------------------------------------------------------------------------------------------------------------
U.S. Real Estate -- Class II $ 852.16 $ 1,880.29 $ 2,941.38 $ 5,749.24
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
If you do not surrender your contract at the end of
the applicable time period
- ------------------------------------------------------------------------------------------------------------------------------------
1 year 3 years 5 years 10 years
- ------------------------------------------------------------------------------------------------------------------------------------
EQ ADVISORS TRUST:
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/Money Market $ 416.07 $ 1,279.51 $ 2,186.76 $ 4,664.47
EQ/Putnam Growth & Income Value $ 448.62 $ 1,374.84 $ 2,341.45 $ 4,949.82
EQ/Putnam Voyager $ 457.02 $ 1,399.34 $ 2,381.03 $ 5,021.94
EQ/Small Company Index $ 438.12 $ 1,344.16 $ 2,291.78 $ 4,858.80
EQ/Technology $ 479.07 $ 1,463.44 $ 2,484.26 $ 5,208.37
- ------------------------------------------------------------------------------------------------------------------------------------
BARR ROSENBERG VARIABLE INSURANCE TRUST:
- ------------------------------------------------------------------------------------------------------------------------------------
Laudus Rosenberg VIT Value Long/Short Equity $ 1,141.54 $ 3,257.25 $ 5,168.85 $ 9,187.67
- ------------------------------------------------------------------------------------------------------------------------------------
THE UNIVERSAL INSTITUTIONAL FUNDS, INC.:
- ------------------------------------------------------------------------------------------------------------------------------------
U.S. Real Estate -- Class II $ 502.16 $ 1,530.29 $ 2,591.38 $ 5,399.24
- ------------------------------------------------------------------------------------------------------------------------------------
16 Fee table
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 periods shown for each of the
variable investment options available as of December 31, 2003.
Fee table 17
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 initial contribution of $25,000 for you
to purchase a contract. You may make additional contributions of at least $500
each for NQ and Rollover TSA contracts and $50 for Rollover IRA and Roth
Conversion contracts and $1000 for Inherited IRA contracts, subject to
limitations noted below. 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.
We may refuse to accept any contribution if the sum of all contributions under
all Equitable Accumulator(R) series contracts with the same owner or annuitant
would then total more than $1,500,000 ($500,000 for owners or annuitants who
are age 81 and older at contract issue). We reserve the right to limit
aggregate contributions made after the first contract year to 150% of
first-year contributions. We may also refuse to accept any contribution if the
sum of all contributions under all Equitable Life annuity accumulation
contracts with the same owner or annuitant would then total more than
$2,500,000. We may accept less than the minimum initial contribution under a
contract if an aggregate amount of contracts purchased at the same time by an
individual (including spouse) meets the minimum.
- --------------------------------------------------------------------------------
The "annuitant" is the person who is the measuring life for determining
contract benefits. The annuitant is not necessarily the contract owner.
- --------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
Available
Contract for annuitant Limitations on
type issue ages Source of contributions contributions+
- ------------------------------------------------------------------------------------------------------------------------------------
NQ 0 through 85 o After-tax money. o No additional contributions after attainment
of age 86 or, if later, the first contract anni-
o Paid to us by check or transfer of contract versary.*
value in a tax-deferred exchange under
Section 1035 of the Internal Revenue Code.
- ------------------------------------------------------------------------------------------------------------------------------------
Rollover IRA 20 through 85 o Eligible rollover distributions from TSA con- o No rollover or direct transfer contributions
tracts or other 403(b) arrangements, after attainment of age 86 or, if later, the
qualified plans, and governmental employer first contract anniversary.*
457(b) plans.
o Contributions after age 70-1/2 must be net of
o Rollovers from another traditional individual required minimum distributions.
retirement arrangement.
o Although we accept regular IRA
o Direct custodian-to-custodian transfers from contributions (limited to $3,000 for 2004
another traditional individual retirement and $4,000 for 2005) under the Rollover IRA
arrangement. contracts, we intend that this contract be
used primarily for rollover and direct transfer
o Regular IRA contributions. contributions.
o Additional "catch-up" contributions. o Additional catch-up contributions of up to
$500 can be made for the calendar year
2004 or 2005 where the owner is at least
age 50 but under age 70-1/2 at any time dur-
ing the calendar year for which the
contribution is made.
- ------------------------------------------------------------------------------------------------------------------------------------
18 Contract features and benefits
- ------------------------------------------------------------------------------------------------------------------------------------
Available
Contract for annuitant Limitations on
type issue ages Source of contributions contributions+
- ------------------------------------------------------------------------------------------------------------------------------------
Roth Conversion 20 through 85 o Rollovers from another Roth IRA. o No additional rollover or direct transfer
IRA contributions after attainment of age 86 or,
o Conversion rollovers from a traditional IRA. if later, the first contract anniversary.*
o Direct transfers from another Roth IRA. o Conversion rollovers after age 70-1/2 must be
net of required minimum distributions for the
o Regular Roth IRA contributions. traditional IRA you are rolling over.
o Additional catch-up contributions. o You cannot roll over funds from a traditional
IRA if your adjusted gross income is
$100,000 or more.
o Although we accept regular Roth IRA contri-
butions (limited to $3,000 for 2004 and
$4,000 for 2005) under the Roth IRA con-
tracts, we intend that this contract be used
primarily for rollover and direct transfer
contributions.
o Additional catch-up contributions of up to
$500 can be made for the calendar year
2004 or 2005 where the owner is at least
age 50 at any time during the calendar year
for which the contribution is made.
- ------------------------------------------------------------------------------------------------------------------------------------
Inherited IRA 0-70 o (If contract is traditional IRA) Direct o Any additional contributions must be from
Beneficiary custodian-to-custodian transfers of your same type of IRA of same deceased owner.
Continuation interest as death beneficiary of the
Contract deceased owner's traditional individual
(traditional IRA retirement arrangement.
or Roth IRA)
o (If contract is Roth IRA) Direct custodian-
to-custodian transfers of your interest as
death beneficiary of the deceased owner's
Roth IRA.
- ------------------------------------------------------------------------------------------------------------------------------------
Rollover TSA 20 through 85 o Direct transfers of pre-tax funds from o No additional rollover or direct transfer
another contract or arrangement under contributions after attainment of age 86 or,
Section 403(b) of the Internal Revenue if later, the first contract anniversary.*
Code, complying with IRS Revenue Ruling
90-24. o Rollover or direct transfer contributions
after age 70-1/2 must be net of any required
o Eligible rollover distributions of pre-tax minimum distributions.
funds from other 403(b) plans. Subsequent
contributions may also be rollovers from o We do not accept employer-remitted
qualified plans, governmental employer contributions.
457(b) plans and traditional IRAs.
- ------------------------------------------------------------------------------------------------------------------------------------
+ If you purchase Guaranteed principal benefit option 2, no contributions are
permitted after the six month period beginning on the contract date.
* For Pennsylvania contracts, please see Appendix VI later in this Prospectus
for state variations.
See "Tax information" later in this Prospectus and in the SAI for a more
detailed discussion of sources of contributions and certain contribution
limitations. For information on when contributions are credited under your
contract see "Dates and prices at which contract events occur" in "More
information" later in this Prospectus.
Contract features and benefits 19
OWNER AND ANNUITANT REQUIREMENTS
Under NQ contracts, the annuitant can be different from the owner. We do not
permit partnerships or limited liability corporations to be owners. We also
reserve the right to prohibit availability of this contract to other
non-natural owners. Only natural persons can be joint owners. In general, we
will not permit a contract to be owned by a minor unless it is pursuant to the
Uniform Gift to Minors Act or the Uniform Transfers to Minors Act in your
state. If the Spousal protection feature is elected, the spouses must be joint
owners, one of the spouses must be the annuitant and both must be named as the
only primary beneficiaries.
Under all IRA and Rollover TSA contracts, the owner and annuitant must be the
same person. In some cases, an IRA contract may be held in a custodial
individual retirement account for the benefit of the individual annuitant. This
option may not be available under your contract. See Inherited IRA beneficiary
continuation contract later in this section for inherited IRA owner and
annuitant requirements.
HOW YOU CAN MAKE YOUR CONTRIBUTIONS
Except as noted below, contributions must be 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.
For your convenience, we will accept initial and additional contributions by
wire transmittal from certain broker-dealers who have agreements with us for
this purpose, including circumstances under which such contributions are
considered received by us when your order is taken by such broker-dealers.
Additional contributions may also be made under our automatic investment
program. These methods of payment are 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 payments. 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.
- --------------------------------------------------------------------------------
Our "business day" is generally any day the New York Stock Exchange is open for
trading and generally ends at 4:00 p.m. Eastern Time. A business day does not
include a 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/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.
- --------------------------------------------------------------------------------
20 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 the Accumulator(R)
Select(SM) 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.
Equitable Life serves as the investment manager of the Portfolios of the EQ
Advisors Trust and the AXA Premier VIP Trust. 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. The
advisers for these Portfolios, listed in the chart below, are those who make
the investment decisions for each Portfolio. The chart also indicates the
investment manager for each of the other Portfolios.
- ------------------------------------------------------------------------------------------------------------------------------------
AXA Premier VIP Trust
Portfolio Name Objective Adviser(s)
- ------------------------------------------------------------------------------------------------------------------------------------
AXA AGGRESSIVE ALLOCATION Seeks long-term capital appreciation. o Equitable Life
- ------------------------------------------------------------------------------------------------------------------------------------
AXA CONSERVATIVE ALLOCATION Seeks a high level of current income. o Equitable Life
- ------------------------------------------------------------------------------------------------------------------------------------
AXA CONSERVATIVE-PLUS Seeks current income and growth of capital, with a o Equitable Life
ALLOCATION greater emphasis on current income.
- ------------------------------------------------------------------------------------------------------------------------------------
AXA MODERATE ALLOCATION Seeks long-term capital appreciation and current income. o Equitable Life
- ------------------------------------------------------------------------------------------------------------------------------------
AXA MODERATE-PLUS Seeks long-term capital appreciation and current income, o Equitable Life
ALLOCATION with a greater emphasis on capital appreciation.
- ------------------------------------------------------------------------------------------------------------------------------------
AXA PREMIER VIP AGGRESSIVE Seeks long-term growth of capital. o Alliance Capital Management L.P.
EQUITY
o MFS Investment Management
o Marsico Capital Management, LLC
o Provident Investment Counsel, Inc.
- ------------------------------------------------------------------------------------------------------------------------------------
AXA PREMIER VIP CORE BOND Seeks a balance of high current income and capital o BlackRock Advisors, Inc.
appreciation, consistent with a prudent level of risk.
o Pacific Investment Management
Company LLC
- ------------------------------------------------------------------------------------------------------------------------------------
AXA PREMIER VIP HEALTH CARE Seeks long-term growth of capital. o A I M Capital Management, Inc.
o RCM Capital Management LLC
o Wellington Management Company, LLP
- ------------------------------------------------------------------------------------------------------------------------------------
AXA PREMIER VIP HIGH YIELD Seeks high total return through a combination of current o Alliance Capital Management L.P.
income and capital appreciation.
o Pacific Investment Management
Company LLC
- ------------------------------------------------------------------------------------------------------------------------------------
AXA PREMIER VIP Seeks long-term growth of capital. o Alliance Capital Management L.P.,
INTERNATIONAL EQUITY through its Bernstein Investment
Research and Management Unit
o Bank of Ireland Asset Management
(U.S.) Limited
o Marsico Capital Management, LLC
- ------------------------------------------------------------------------------------------------------------------------------------
AXA PREMIER VIP LARGE CAP Seeks long-term growth of capital. o Alliance Capital Management L.P.,
CORE EQUITY through its Bernstein Investment
Research and Management Unit
o Janus Capital Management LLC
o Thornburg Investment Management,Inc.
- ------------------------------------------------------------------------------------------------------------------------------------
Contract features and benefits 21
Portfolios of the Trusts (continued)
- ------------------------------------------------------------------------------------------------------------------------------------
AXA Premier VIP Trust
Portfolio Name Objective Adviser(s)
- ------------------------------------------------------------------------------------------------------------------------------------
AXA PREMIER VIP LARGE CAP Seeks long-term growth of capital. o Alliance Capital Management L.P.
GROWTH
o RCM Capital Management LLC
o TCW Investment Management Company
- ------------------------------------------------------------------------------------------------------------------------------------
AXA PREMIER VIP LARGE CAP Seeks long-term growth of capital. o Alliance Capital Management L.P.
VALUE
o Institutional Capital Corporation
o MFS Investment Management
- ------------------------------------------------------------------------------------------------------------------------------------
AXA PREMIER VIP SMALL/MID Seeks long-term growth of capital. o Alliance Capital Management L.P.
CAP GROWTH
o Franklin Advisers, Inc.
o Provident Investment Counsel, Inc.
- ------------------------------------------------------------------------------------------------------------------------------------
AXA PREMIER VIP SMALL/MID Seeks long-term growth of capital. o AXA Rosenberg Investment Management LLC
CAP VALUE
o TCW Investment Management Company
o Wellington Management Company, LLP
- ------------------------------------------------------------------------------------------------------------------------------------
AXA PREMIER VIP TECHNOLOGY Seeks long-term growth of capital. o Firsthand Capital Management, Inc.
o RCM Capital Management LLC
o Wellington Management Company, LLP
- ------------------------------------------------------------------------------------------------------------------------------------
EQ Advisors Trust
Portfolio Name Objective Adviser(s)
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/ALLIANCE COMMON STOCK Seeks to achieve long-term growth of capital. o Alliance Capital Management L.P.
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/ALLIANCE GROWTH AND Seeks to provide a high total return. o Alliance Capital Management L.P.
INCOME
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/ALLIANCE INTERMEDIATE Seeks to achieve high current income consistent with o Alliance Capital Management L.P.
GOVERNMENT SECURITIES relative stability of principal.
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/ALLIANCE INTERNATIONAL Seeks to achieve long-term growth of capital. o Alliance Capital Management L.P.
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/ALLIANCE PREMIER GROWTH Seeks to achieve long-term growth of capital. o Alliance Capital Management L.P.
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/ALLIANCE QUALITY BOND Seeks to achieve high current income consistent with o Alliance Capital Management L.P.
moderate risk to capital.
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/ALLIANCE SMALL CAP Seeks to achieve long-term growth of capital. o Alliance Capital Management L.P.
GROWTH
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/BERNSTEIN DIVERSIFIED VALUE Seeks capital appreciation. o Alliance Capital Management L.P.,
through its Bernstein Investment Research
and Management Unit
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/CALVERT SOCIALLY Seeks long-term capital appreciation. o Calvert Asset Management Company, Inc.
RESPONSIBLE and Brown Capital Management, Inc.
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/CAPITAL GUARDIAN To achieve long-term growth of capital. o Capital Guardian Trust Company
INTERNATIONAL
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/CAPITAL GUARDIAN Seeks to achieve long-term growth of capital. o Capital Guardian Trust Company
RESEARCH
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/CAPITAL GUARDIAN U.S. Seeks to achieve long-term growth of capital. o Capital Guardian Trust Company
EQUITY
- ------------------------------------------------------------------------------------------------------------------------------------
22 Contract features and benefits
Portfolios of the Trusts (continued)
- ------------------------------------------------------------------------------------------------------------------------------------
EQ Advisors Trust
Portfolio Name Objective Adviser(s)
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/EMERGING MARKETS EQUITY Seeks long-term capital appreciation. o Morgan Stanley Investment Management,
Inc.
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/EQUITY 500 INDEX Seeks a total return before expenses that approximates o 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. o Evergreen Investment Management
Company, LLC
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/FI MID CAP Seeks long-term growth of capital. o Fidelity Management & Research Company
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/FI SMALL/MID CAP VALUE Seeks long-term capital appreciation. o Fidelity Management & Research Company
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/J.P. MORGAN CORE BOND Seeks to provide a high total return consistent with o J.P. Morgan Investment Management Inc.
moderate risk to capital and maintenance of liquidity.
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/JANUS LARGE CAP GROWTH Seeks long-term growth of capital. o Janus Capital Management LLC
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/LAZARD SMALL CAP VALUE Seeks capital appreciation. o Lazard Asset Management, LLC
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/MARSICO FOCUS Seeks long-term growth of capital. o Marsico Capital Management, LLC
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/MERCURY BASIC VALUE Seeks capital appreciation and secondarily, income. o Mercury Advisors
EQUITY
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/MERCURY INTERNATIONAL Seeks capital appreciation. o Merrill Lynch Investment Managers
VALUE International Limited
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/MFS EMERGING GROWTH Seeks to provide long-term capital growth. o MFS Investment Management
COMPANIES
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/MFS INVESTORS TRUST Seeks long-term growth of capital with secondary o MFS Investment Management
objective to seek reasonable current income.
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/MONEY MARKET Seeks to obtain a high level of current income, o Alliance Capital Management L.P.
preserve its assets and maintain liquidity.
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/PUTNAM GROWTH & INCOME Seeks capital growth. Current income is a secondary o Putnam Investment Management, LLC
VALUE objective.
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/PUTNAM VOYAGER Seeks long-term growth of capital and any increased o Putnam Investment Management, LLC
income that results from this growth.
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/SMALL COMPANY INDEX Seeks to replicate as closely as possible (before the o Alliance Capital Management L.P.
deduction of portfolio expenses) the total return of
the Russell 2000 Index.
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/TECHNOLOGY Seeks to achieve long-term growth of capital. o Firsthand Capital Management, Inc.
o RCM Capital Management LLC
o Wellington Management Company, LLP
- ------------------------------------------------------------------------------------------------------------------------------------
Barr Rosenberg Variable
Insurance Trust
Portfolio Name Objective Investment Manager/Adviser
- ------------------------------------------------------------------------------------------------------------------------------------
LAUDUS ROSENBERG VIT VALUE Seeks to increase the value of your investment in bull o Charles Schwab Investment Management, Inc.
LONG/SHORT EQUITY markets and bear markets through strategies that are
designed to have limited exposure to general equity o AXA Rosenberg Investment Management LLC
market risk.
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Contract features and benefits 23
Portfolios of the Trusts (continued)
- ------------------------------------------------------------------------------------------------------------------------------------
The Universal Institutional
Funds, Inc.
Portfolio Name Objective Investment Manager
- ------------------------------------------------------------------------------------------------------------------------------------
U.S. REAL ESTATE -- Class II(1) Seeks to provide above average current income and long- o Van Kampen(2)
term capital appreciation by investing primarily in
equity securities of companies in the U.S. real estate
industry, including real estate investment trusts.
- ------------------------------------------------------------------------------------------------------------------------------------
(1) 'Class II' Shares are defined in the current underlying Trust prospectus.
(2) Van Kampen is the name under which Morgan Stanley Investment Management
Inc. does business in certain situations.
You should consider the investment objectives, risks and charges and expenses
of the Portfolios carefully before investing. The prospectuses for the Trusts
contain this and other important information about the portfolios. The
prospectuses should be read carefully before investing. In order to obtain
copies of Trust prospectuses that do not accompany this Prospectus, you may
call one of our customer service representatives at 1-800-789-7771.
24 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. We reserve the right to change these procedures.
All interest rates are effective annual rates, but before deduction of annual
administrative charges.
The minimum yearly rate for 2004 is equal to the lifetime minimum rate of your
contract. Depending on the state where your contract is issued, your lifetime
minimum rate is either 1.5% or 3.00%. The data page for your contract shows the
lifetime minimum rate. The annual minimum rate will never be less than the
lifetime minimum rate. Check with your financial professional as to which rate
applies in your state. Current interest rates will never be less than the
yearly guaranteed interest rate.
Generally, contributions and transfers into and out of the guaranteed interest
option are limited. See "Transferring your money among the investment options"
later in this Prospectus for restrictions on transfers to and from the
guaranteed interest option.
FIXED MATURITY OPTIONS
We offer fixed maturity options with maturity dates ranging from one to ten
years. We will not accept allocations to a fixed maturity option if on the date
the contribution or transfer is to be applied the rate to maturity is 3%. This
means that at points in time there may be no fixed maturity options available.
You can allocate your contributions to one or more of these fixed maturity
options, however, you may not have more than 12 different maturities running
during any contract year. These amounts become part of a non-unitized separate
account. 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 all states. Check with your financial professional
or see Appendix VI later in this Prospectus to see if fixed maturity options
are available in your state.
- --------------------------------------------------------------------------------
Fixed maturity options range from one to ten years to maturity.
- --------------------------------------------------------------------------------
Under the Special 10 year fixed maturity option (which is available only under
GPB Option 2), additional contributions will have the same maturity date as
your initial contribution (see "the Guaranteed Principal benefits" below.) The
rate to maturity you will receive for each additional contribution is the rate
to maturity in effect for new contributions allocated to that fixed maturity
option on the date we apply your contribution.
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 amounts 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 offer fixed maturity options with
maturity dates ranging from one to ten years. Not all of these fixed maturity
options will be available for annuitant ages 76 and older. See "Allocating your
contributions" below.
Each new contribution is applied to a new fixed maturity option. When you apply
for an Accumulator(R) Select(SM) contract, a 60-day rate lock-in will apply from
the date the application is signed. Any contributions received and designated
for a fixed maturity option during this period will receive the then current
fixed maturity option rate or the rate that was in effect on the date that the
application was signed, whichever is greater. There is no rate lock available
for subsequent contributions to the contract after 60 days, transfers from the
variable investment options or the guaranteed interest option into a fixed
maturity option or transfers from one fixed maturity option to another.
YOUR CHOICES AT THE MATURITY DATE. We will notify you between 15 and 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 in "Allocating your
contributions," below would apply:
(a) transfer the maturity value into another available fixed maturity option,
any of the variable investment options or the guaranteed interest option;
or
(b) withdraw the maturity value.
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
shortest available maturity option beginning on that date. As of February 13,
2004, the next available maturity date was February 13, 2012. If no fixed
maturity options are available we will transfer your maturity value to the
EQ/Money Market option.
MARKET VALUE ADJUSTMENT. If you make any withdrawals (including transfers,
surrender 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 in effect at that time for new fixed maturity
options, (adjusted to reflect a similar maturity date) and
Contract features and benefits 25
(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 three ways to allocate your contributions under your
contract: self-directed, the guaranteed principal benefits or dollar cost
averaging.
SELF-DIRECTED ALLOCATION
You may allocate your contributions to one or more, or all, of the variable
investment options, guaranteed interest option and fixed maturity options.
Allocations must be in whole percentages and you may change your allocations at
any time. No more than 25% of any contribution may be allocated to the
guaranteed interest option. The total of your allocations into all available
investment options must equal 100%. If the annuitant is age 76-80, you may
allocate contributions to fixed maturity options with maturities of seven years
or less. If the annuitant is age 81 or older, you may allocate contributions to
fixed maturity options with maturities of five years or less. Also, you may not
allocate amounts to fixed maturity options with maturity dates that are later
than the date annuity payments are to begin.
THE GUARANTEED PRINCIPAL BENEFITS
Subject to state availability (see Appendix VI later in this Prospectus for
more information on state availability of these benefits), we offer a
guaranteed principal benefit ("GPB") with two options. You may only elect one
of the GPBs. Neither GPB is available under Inherited IRA contracts. We will
not offer either GPB when the rate to maturity for the applicable fixed
maturity option is 3%. If you elect either GPB, you may not elect the
Guaranteed minimum income benefit, the systematic withdrawals option or the
substantially equal withdrawals options. Both GPB options allow you to allocate
a portion of your contribution or contributions to the variable investment
options, while ensuring that your account value will at least equal your
contributions, adjusted for withdrawals and transfers, on a specified date. GPB
Option 2 generally provides you with the ability to allocate more of your
contributions to the variable investment options than could be allocated using
GPB Option 1.
You may elect GPB Option 1 only if the annuitant is age 80 or younger when the
contract is issued (after age 75, only the 7-year fixed maturity option is
available). You may elect GPB Option 2 only if the annuitant is age 75 or
younger when the contract is issued. If you are purchasing an IRA or Rollover
TSA contract, before you either purchase GPB Option 2 or elect GPB Option 1
with 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, guaranteed interest option and permissible funds outside this contract
are sufficient to meet your required minimum distributions. See "Tax
information" later in this Prospectus and in the SAI.
GUARANTEED PRINCIPAL BENEFIT OPTION 1. Under GPB Option 1, you select a fixed
maturity option at the time you sign your application. 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
percentage of your contribution allocated to the fixed maturity option will be
calculated based upon the rate to maturity then in effect for the fixed
maturity option you choose. Your contract will contain information on the
amount of your contribution allocated to the fixed maturity option. If you make
any withdrawals or transfers from the fixed maturity option before the option's
maturity date, the amount in the fixed maturity option will be adjusted and may
no longer grow to equal your initial contribution under GPB Option 1. The
maturity date you select generally may not be later than 10 years, or earlier
than 7 years from your contract date. You may allocate the rest of your initial
contribution to the investment options however you choose, other than the
Investment simplifier. (If you elect the General or 12 month dollar cost
averaging program, the remainder of your initial contribution (that is, amounts
other than those allocated to the fixed maturity option under GPB Option 1)
must be allocated to that dollar cost averaging program). Upon the maturity
date of the fixed maturity option, you will be provided with the same notice
and the same choices with respect to the maturity value as described above
under "Your choices at the maturity date." There is no charge for GPB Option 1.
GUARANTEED PRINCIPAL BENEFIT OPTION 2. You may purchase GPB Option 2 at the
time you apply for your contract. IF YOU PURCHASE GPB OPTION 2, YOU MAY NOT
MAKE ADDITIONAL CONTRIBUTIONS TO YOUR CONTRACT AFTER SIX MONTHS FROM THE
CONTRACT ISSUE DATE OR AT ANY EARLIER TIME IF AT SUCH TIME THE THEN APPLICABLE
RATE TO MATURITY ON THE SPECIAL 10 YEAR FIXED MATURITY OPTION IS 3%. Therefore,
any discussion in this Prospectus that involves any additional contributions
after the first six months will be inapplicable.
We specify the portion of your initial contribution, and any additional
permitted contributions, to be allocated to a special 10 year fixed maturity
option. Your contract will contain information on the percentage of applicable
contributions allocated to the Special 10 year fixed maturity option. You may
allocate the rest of your contributions among the investment options (other
than the Special 10 year fixed maturity option) however you choose, as
permitted under your contract, and other than the Investment simplifier. (If
you elect the General or 12 month dollar cost averaging program, the remainder
of all contribu-
26 Contract features and benefits
tions (that is, amounts other than those allocated to the Special 10 year fixed
maturity option) must be allocated to that dollar cost averaging program). The
Special 10 year fixed maturity option will earn interest at the specified rate
to maturity then in effect.
If on the 10th contract date anniversary, your annuity account value is less
than the amount that is guaranteed under GPB Option 2, we will increase your
annuity account value to be equal to the guaranteed amount under GPB Option 2.
Any such additional amounts added to your annuity account value will be
allocated to the EQ/Money Market investment option. After the maturity date of
the Special 10 year fixed maturity option, the guarantee under GPB Option 2
will terminate. Upon the maturity date of the Special 10 year fixed maturity
option, you will be provided with the same notice and the same choices with
respect to the maturity value as described above under "Your choices at the
maturity date." The guaranteed amount under GPB Option 2 is equal to your
initial contribution adjusted for any additional permitted contributions,
transfers out of the Special 10 year fixed maturity option and withdrawals from
the contract (see "How withdrawals (and transfers out of the Special 10 year
fixed maturity option) affect your Guaranteed minimum income benefit,
Guaranteed minimum death benefit and Guaranteed principal benefit option 2" in
"Accessing your money" later in this Prospectus). Any transfers or withdrawals
from the Special 10 year fixed maturity option will also be subject to a market
value adjustment (see "Market value adjustment" under "Fixed maturity options"
above in this section).
Once you purchase the Guaranteed principal benefit option 2, you may not
voluntarily terminate this benefit. GPB Option 2 will terminate if the contract
terminates before the maturity date of the Special 10 year fixed maturity
option. If the owner and the annuitant are different people and the owner dies
before the maturity date of the Special 10 year fixed maturity option, we will
continue GPB Option 2 only if the contract can continue through the maturity
date of the Special 10 year fixed maturity option. If the contract cannot so
continue, we will terminate GPB Option 2. GPB Option 2 will continue where
there is a successor owner/annuitant. GPB Option 2 will terminate upon the
exercise of the beneficiary continuation option. See "Payment of death benefit"
later in this Prospectus for more information about the continuation of the
contract after the death of the owner and/or the annuitant.
There is a fee associated with GPB Option 2 (see "Charges and expenses" later
in this Prospectus). You should note that the purchase of GPB Option 2 is not
appropriate if you want to make additional contributions to your contract
beyond the first six months after your contract is issued. If you later decide
that you would like to make additional contributions to the Accumulator(R)
Select(SM) contract, we may permit you to purchase another contract. If we do,
however, you should note that we do not reduce or waive any of the charges on
the new contract, nor do we guarantee that the features available under this
contract will be available under the new contract. This means that you might
end up paying more with respect to certain charges than if you had simply
purchased a single contract (for example, the administrative charge).
The purchase of GPB Option2 is also not appropriate if you plan on terminating
your contract before the maturity date of the Special 10 year fixed maturity
option. In addition, because we prohibit contributions to your contract after
the first six months, certain contract benefits that are dependent upon
contributions or account value will be limited (for example the guaranteed
death benefits and Protection Plus). You should also note that if you intend to
allocate a large percentage of your contributions to the guaranteed interest
option or other fixed maturity options, the purchase of GPB Option 2 may not be
appropriate because of the guarantees already provided by these options. An
example of the effect of GPB Option 1 and GPB Option 2 on your annuity contract
is included in Appendix V later in this Prospectus.
DOLLAR COST AVERAGING
We offer a variety of dollar cost averaging programs. You may only participate
in one program at a time. Each program allows you to gradually allocate amounts
to the other 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 value is low and
fewer units if the unit value is high. Therefore, you may get a lower average
cost per unit over the long term. These plans of investing, however, do not
guarantee that you will earn a profit or be protected against losses. You may
not make transfers to the fixed maturity options or the guaranteed interest
option.
- --------------------------------------------------------------------------------
Units measure your value in each variable investment option.
- --------------------------------------------------------------------------------
12 MONTH DOLLAR COST AVERAGING PROGRAM. Subject to state availability, you may
dollar cost average from the EQ/Money Market option into any of the other
variable investment options. You may elect to participate in the 12 month
dollar cost averaging program at any time subject to the age limitation on
contributions described earlier in this Prospectus. Contributions into the
account for 12 month dollar cost averaging may not be transfers from other
investment options. You must allocate your entire initial contribution into the
EQ/Money Market option if you are selecting the 12 month dollar cost averaging
program at application to purchase an Accumulator(R) Select(SM) contract;
thereafter, initial allocations to any new 12 month dollar cost averaging
program time period must be at least $2,000 and any subsequent contribution to
that same time period must be at least $250. You may only have one time period
in effect at any time. We will transfer your value in the EQ/Money Market
option into the other variable investment options that you select over the next
12 months or such other period we may offer. Once the time period then in
effect has run, you may then select to participate in the dollar cost averaging
program for an additional time period. At that time, you may also select a
different allocation for transfers to the variable investment options, or, if
you wish, we will continue to use the selection that you have previously made.
Currently, the transfer date will be the same day of the month as the contract
date, but not later than the 28th. For a 12 month dollar cost averaging program
selected after application, the first transfer date and each subsequent
transfer date for the time period selected will be one month from the date the
first contribution is made into the 12 month dollar cost averaging program, but
not later than the 28th of the month. All amounts will be transferred out by
the end of the time
Contract features and benefits 27
period then in effect. Under this program we will not deduct the mortality and
expense risks, administrative, and distribution charges from assets in the
EQ/Money Market option.
You may not transfer amounts to the EQ/Money Market option established for this
program that are not part of the 12 month dollar cost averaging program. The
only amounts that should be transferred from the EQ/Money Market option are
your regularly scheduled transfers to the other variable investment options. If
you request to transfer or withdraw any other amounts from the EQ/Money Market
option, we will transfer all of the value that you have remaining in the
account for 12 month dollar cost averaging to the investment options according
to the allocation percentages we have on file for you. You may ask us to cancel
your participation at any time.
GENERAL DOLLAR COST AVERAGING PROGRAM. If your value in the EQ/Money Market
option is at least $5,000, you may choose, at any time, to have a specified
dollar amount or percentage of your value transferred from that option to the
other variable investment options. You can select to have transfers made on a
monthly, quarterly or annual basis. The transfer date will be the same calendar
day of the month as the contract date, but not later than the 28th day of the
month. You can also specify the number of transfers or instruct us to continue
making the transfers until all amounts in the EQ/Money Market option have been
transferred out. The minimum amount that we will transfer each time is $250.
If, on any transfer date, your value in the EQ/Money Market option is equal to
or less than the amount you have elected to have transferred, the entire amount
will be transferred. The general dollar cost averaging program will then end.
You may change the transfer amount once each contract year or cancel this
program at any time.
INVESTMENT SIMPLIFIER
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. Transfers may be made on a monthly,
quarterly or annual basis. You can specify the number of transfers or instruct
us to continue to make 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. The transfer date will be the same calendar day of the month
as the contract date but not later than the 28th day of the month. The minimum
transfer amount is $50. The fixed-dollar option is subject to the guaranteed
interest option transfer limitations described under "Transferring your account
value" in "Transferring your money among investment options" later in this
Prospectus. While the program is running, any transfer that exceeds those
limitations will cause the program to end for that contract year. You will be
notified. You must send in a request form to resume the program in the next or
subsequent contract years.
If, on any transfer date your value in the guaranteed interest option is equal
to or less than the amount you have elected to have transferred, the entire
amount will be transferred, and the program will end. You may change the
transfer amount once each contract year or cancel this program at any time.
Interest sweep option. Under this option, you may elect to have monthly
transfers from amounts in the guaranteed interest option into the variable
investment options of your choice. The transfer date will be the last business
day of the month. 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. We will automatically cancel the interest sweep
program if the amount in the guaranteed interest option is less than $7,500 on
the last day of the month for two months in a row. For the interest sweep
option, 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.
----------------------------------
You may not participate in any dollar cost averaging program if you are
participating in the rebalancing program. If you elect a GPB, you may also
elect the 12 month or General dollar cost averaging program. If you elect
either of these programs, everything other than amounts allocated to the fixed
maturity option under the GPB must be allocated to that dollar cost averaging
program. You may still elect the Investment simplifier for amounts transferred
from investment options (other than the fixed maturity option under the GPB you
have elected), and, for GPB Option 1, you may also elect Investment simplifier
for subsequent contributions. See "Transferring your money among investment
options" later in this Prospectus.
YOUR BENEFIT BASE
A benefit base is used to calculate the Guaranteed minimum income benefit and
the death benefits as described in this section. Your benefit base is not an
account value or a cash value. See also "Our Guaranteed minimum income benefit
option" and "Guaranteed minimum death benefit" below.
STANDARD DEATH BENEFIT. Your benefit base is equal to:
o your initial contribution and any additional contributions to the contract;
less
o a deduction that reflects any withdrawals you make (the amount of the
deduction is described under "How withdrawals (and transfers out of the
Special 10 year fixed maturity option) affect your Guaranteed minimum
income benefit, Guaranteed minimum death benefit and Guaranteed principal
benefit option 2" in "Accessing your money" later in this Prospectus).
6% ROLL UP TO AGE 85 (USED FOR THE GREATER OF THE 6% ROLL UP TO AGE 85 OR THE
ANNUAL RATCHET TO AGE 85 ENHANCED DEATH BENEFIT AND FOR THE GUARANTEED MINIMUM
INCOME BENEFIT). Your benefit base is equal to:
o your initial contribution and any additional contributions to the contract;
plus
28 Contract features and benefits
o daily interest; less
o a deduction that reflects any withdrawals you make (the amount of the
deduction is described under "How withdrawals (and transfers out of the
Special 10 year fixed maturity option) affect your Guaranteed minimum
income benefit, Guaranteed minimum death benefit and Guaranteed principal
benefit option 2" in "Accessing your money" and the section entitled
"Charges and expenses" later in this Prospectus).
The effective annual interest rate credited to this benefit base is:
o 6% with respect to the variable investment options (other than EQ/Alliance
Intermediate Government Securities and EQ/Money Market) and monies
allocated to the 12 month dollar cost averaging program; and
o 3% with respect to the EQ/Alliance Intermediate Government Securities and
EQ/Money Market, the fixed maturity options, the Special 10 year fixed
maturity option, the guaranteed interest option and the loan reserve
account under Rollover TSA (if applicable).
No interest is credited to the benefit base after the contract anniversary
following the annuitant's 85th birthday.
ANNUAL RATCHET TO AGE 85 (USED FOR THE ANNUAL RATCHET TO AGE 85 ENHANCED DEATH
BENEFIT, THE GREATER OF THE 6% ROLL UP TO AGE 85 OR THE ANNUAL RATCHET TO AGE
85 ENHANCED DEATH BENEFIT AND FOR THE GUARANTEED MINIMUM INCOME BENEFIT). Your
benefit base is equal to the greater of:
o your initial contribution to the contract (plus any additional
contributions),
or
o your highest account value on any contract anniversary up to the contract
anniversary following the annuitant's 85th birthday, plus any
contributions made since the most recent contract anniversary,
each less
o a deduction that reflects any withdrawals you make (the amount of the
deduction is described under "How withdrawals (and transfers out of the
Special 10 year fixed maturity option) affect your Guaranteed minimum
income benefit, Guaranteed minimum death benefit and Guaranteed principal
benefit option 2" in "Accessing your money" later in this Prospectus).
GREATER OF THE 6% ROLL UP TO AGE 85 OR THE ANNUAL RATCHET TO AGE 85 ENHANCED
DEATH BENEFIT AND FOR THE GUARANTEED MINIMUM INCOME BENEFIT. Your benefit base
is equal to the greater of the benefit base computed for the 6% Roll up to age
85 or the benefit base computed for Annual Ratchet to age 85, as described
immediately above, on each contract anniversary.
ANNUITY PURCHASE FACTORS
Annuity purchase factors are the factors applied to determine your periodic
payments under the Guaranteed minimum income benefit and annuity payout
options. The Guaranteed minimum income benefit is discussed in "Our Guaranteed
minimum income benefit option" below and annuity payout options are discussed
in "Accessing your money" later in this Prospectus. The guaranteed annuity
purchase factors are those factors specified in your contract. The current
annuity purchase factors are those factors that are in effect at any given
time. Annuity purchase factors are based on interest rates, mortality tables,
frequency of payments, the form of annuity benefit, and the annuitant's (and
any joint annuitant's) age and sex in certain instances.
OUR GUARANTEED MINIMUM INCOME BENEFIT OPTION
The Guaranteed minimum income benefit is available if the annuitant is age 20
through 75 at the time the contract is issued. There is an additional charge
for the Guaranteed minimum income benefit which is described under "Guaranteed
minimum income benefit charge" in "Charges and expenses" later in this
Prospectus. Once you purchase the Guaranteed minimum income benefit, you may
not voluntarily terminate this benefit.
If you are purchasing this contract as an Inherited IRA or if you elect a GPB,
the Guaranteed minimum income benefit is not available. If you are purchasing
this contract to fund a Charitable Remainder Trust, the Guaranteed minimum
income benefit is not available except for certain split-funded Charitable
Remainder Trusts. If the annuitant was older than age 60 at the time an IRA or
Rollover TSA contract was issued, the Guaranteed minimum income benefit may not
be an appropriate feature because the minimum distributions required by tax law
generally must begin before the Guaranteed minimum income benefit can be
exercised.
The Guaranteed minimum income benefit guarantees you a minimum amount of fixed
income under your choice of a life annuity fixed payout option or a life with a
period certain payout option, subject to state availability. You choose which
of these payout options you want and whether you want the option to be paid on
a single or joint life basis at the time you exercise your Guaranteed minimum
income benefit. The maximum period certain available under the life with a
period certain payout option is 10 years. This period may be shorter, depending
on the annuitant's age as follows:
- -------------------------------------------
Level payments
- -------------------------------------------
Period certain years
--------------------
Annuitant's
age at exercise IRAs NQ
- -------------------------------------------
75 and younger 10 10
76 9 10
77 8 10
78 7 10
79 7 10
80 7 10
81 7 9
82 7 8
83 7 7
- -------------------------------------------
Contract features and benefits 29
- -------------------------
Level payments
- -------------------------
84 6 6
85 5 5
- -------------------------
We may also make other forms of payout options available. For a description of
payout options, see "Your annuity payout options" in "Accessing your money"
later in this Prospectus.
- --------------------------------------------------------------------------------
The Guaranteed minimum income benefit should be regarded as a safety net only.
It provides income protection if you elect an income payout while the annuitant
is alive.
- --------------------------------------------------------------------------------
When you exercise the Guaranteed minimum income benefit, the annual lifetime
income that you will receive will be the greater of (i) your Guaranteed minimum
income benefit which is calculated by applying your Guaranteed minimum income
benefit base less any outstanding loan plus accrued interest (applies to
Rollover TSA only) at guaranteed annuity purchase factors, or (ii) the income
provided by applying your actual account value at our then current annuity
purchase factors. The benefit base is applied only to the guaranteed annuity
purchase factors under the Guaranteed minimum income benefit in your contract
and not to any other guaranteed or current annuity purchase rates. The amount
of income you actually receive will be determined when we receive your request
to exercise the benefit.
When you elect to receive annual lifetime income, your contract will terminate
and you will receive a new contract for the annuity payout option. For a
discussion of when your payments will begin and end, see "Exercise of
Guaranteed minimum income benefit" below.
Before you elect the Guaranteed minimum income benefit, you should consider the
fact that it provides a form of insurance and is based on conservative
actuarial factors. The guaranteed annuity purchase factors we use to determine
your payout annuity benefit under the Guaranteed minimum income benefit are
more conservative than the guaranteed annuity purchase factors we use for our
standard payout annuity options. This means that, assuming the same amount is
applied to purchase the benefit and that we use guaranteed annuity purchase
factors to compute the benefit, each periodic payment under the Guaranteed
minimum income benefit payout annuity will be smaller than each periodic
payment under our standard payout annuity options. Therefore, even if your
account value is less than your benefit base, you may generate more income by
applying your account value to current annuity purchase factors. We will make
this comparison for you when the need arises.
ILLUSTRATIONS OF GUARANTEED MINIMUM INCOME BENEFIT. Assuming the 6% Roll up to
age 85 benefit base, the table below illustrates the Guaranteed minimum income
benefit amounts per $100,000 of initial contribution, for a male annuitant age
60 (at issue) on the contract date anniversaries indicated, who has elected the
life annuity fixed payout option, using the guaranteed annuity purchase factors
as of the date of this Prospectus, assuming no additional contributions,
withdrawals or loans under Rollover TSA contracts, and assuming there were no
allocations to the EQ/Alliance Intermediate Government Securities, EQ/Money
Market, the guaranteed interest option, the fixed maturity options (including
the Special 10 year fixed maturity option) or the loan reserve account.
- -----------------------------------------------------------
Guaranteed minimum income
Contract date benefit -- annual income pay-
anniversary at exercise able for life
- -----------------------------------------------------------
10 $11,891
15 $18,597
- -----------------------------------------------------------
EXERCISE OF GUARANTEED MINIMUM INCOME BENEFIT. On each contract date
anniversary that you are eligible to exercise the Guaranteed minimum income
benefit, we will send you an eligibility notice illustrating how much income
could be provided as of the contract date anniversary. You must notify us
within 30 days following the contract date anniversary if you want to exercise
the Guaranteed minimum income benefit. You must return your contract to us,
along with all required information, in order to exercise this benefit. You
will begin receiving annual payments one year after the annuity payout contract
is issued. You may choose to take a withdrawal prior to exercising the
Guaranteed minimum income benefit, which will reduce your payments. You may not
partially exercise this benefit. See "Accessing your money" under "Withdrawing
your account value" later in this Prospectus. Payments end with the last
payment before the annuitant's (or joint annuitant's, if applicable) death or,
if later, then end of the period certain (where the payout option chosen
includes a period certain).
EXERCISE RULES. You will be eligible to exercise the Guaranteed minimum income
benefit as follows:
o If the annuitant was at least age 20 and no older than age 44 when the
contract was issued, you are eligible to exercise the Guaranteed minimum
income benefit within 30 days following each contract date anniversary
beginning with the 15th contract date anniversary.
o If the annuitant was at least age 45 and no older than age 49 when the
contract was issued, you are eligible to exercise the Guaranteed minimum
income benefit within 30 days following each contract date anniversary
after the annuitant is age 60.
o If the annuitant was at least age 50 and no older than age 75 when the
contract was issued, you are eligible to exercise the Guaranteed minimum
income benefit within 30 days following each contract date anniversary
beginning with the 10th contract date anniversary.
Please note:
(i) the latest date you may exercise the Guaranteed minimum income benefit
is within 30 days following the contract date anniversary following the
annuitant's 85th birthday;
(ii) if the annuitant was age 75 when the contract was issued, the only time
you may exercise the Guaranteed minimum income benefit is within 30 days
following the first contract date anniversary that it becomes available;
(iii) for Rollover TSA contracts, if you are eligible to exercise your
Guaranteed minimum income benefit, we will first roll over amounts in
such contract to a Rollover IRA contract. You will be the owner of the
Rollover IRA contract; and
(iv) a successor owner/annuitant may only continue the Guaranteed minimum
income benefit if the contract is not past the last date
30 Contract features and benefits
on which the original annuitant could have exercised the benefit. In
addition, the successor owner/annuitant must be eligible to continue the
benefit and to exercise the benefit under the applicable exercise rule
(described in the above bullets) using the following additional rules. The
successor owner/annuitant's age on the date of the annuitant's death
replaces the annuitant's age at issue for purposes of determining the
availability of the benefit and which of the exercise rules applies. The
original contract issue date will continue to apply for purposes of the
exercise rules.
Please see both "Termination of your contract" in "Determining your contract
value" and "How withdrawals (and transfers out of the Special 10 year fixed
maturity option) affect your Guaranteed minimum income benefit, Guaranteed
minimum death benefit and Guaranteed principal benefit option 2" in "Accessing
your money" later in this Prospectus for more information on these guaranteed
benefits.
GUARANTEED MINIMUM DEATH BENEFIT
Your contract provides a death benefit. If you do not elect one of the enhanced
death benefits 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 standard death benefit, whichever provides the highest
amount. The standard death benefit is equal to your total contributions
adjusted for any withdrawals and any taxes that apply. Once your contract is
issued, you may not change or voluntarily terminate your death benefit.
If you elect one of the enhanced death benefits, 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 your elected enhanced
death benefit on the date of the annuitant's death (adjusted for any subsequent
withdrawals and taxes that apply), whichever provides the highest amount. If
you elect the Spousal protection option, the Guaranteed minimum death benefit
is based on the age of the older spouse, who may or may not be the annuitant,
for the life of the contract. See "Spousal protection" in "Payment of death
benefit" later in this Prospectus for more information.
OPTIONAL ENHANCED DEATH BENEFITS APPLICABLE FOR ANNUITANT AGES 0 THROUGH 75 AT
ISSUE OF NQ CONTRACTS; 20 THROUGH 75 AT ISSUE OF ROLLOVER IRA, ROTH CONVERSION
IRA AND ROLLOVER TSA CONTRACTS; AND 0 THROUGH 70 AT ISSUE OF INHERITED IRA
CONTRACTS.
Subject to state availability, you may elect one of the following enhanced
death benefits (see Appendix VI later in this Prospectus for state availability
of these benefits):
ANNUAL RATCHET TO AGE 85.
THE GREATER OF THE 6% ROLL UP TO AGE 85 OR THE ANNUAL RATCHET TO AGE 85.
Each enhanced death benefit is equal to its corresponding benefit base
described earlier in "Your benefit base." Once you have made your enhanced
death benefit election, you may not change it.
The standard death benefit is the only death benefit available for annuitants
ages 76 through 85 at issue of NQ, Rollover IRA, Roth Conversion IRA and
Rollover TSA contracts.
----------------------------------
Please see both "Termination of your contract" in "Determining your contract
value" and "How withdrawals and (transfers out of the Special 10 year fixed
maturity option) affect your Guaranteed minimum income benefit, Guaranteed
minimum death benefit and Guaranteed principal benefit option 2" in "Accessing
your money" later in this Prospectus for more information on these guaranteed
benefits.
See Appendix III later in this Prospectus for an example of how we calculate an
enhanced death benefit.
Protection Plus
Subject to state and contract availability (see Appendix VI later in this
Prospectus for state availability of these benefits), if you are purchasing a
contract under which the Protection Plus feature is available, you may elect
the Protection Plus death benefit at the time you purchase your contract.
Protection Plus provides an additional death benefit as described below. See
the appropriate part of "Tax information" later in this Prospectus for the
potential tax consequences of electing to purchase the Protection Plus feature
in an NQ, IRA or Rollover TSA contract. Once you purchase the Protection Plus
feature, you may not voluntarily terminate this feature.
If the annuitant is 70 or younger when we issue your Contract (or if the
successor owner/annuitant is 70 or younger when he or she becomes the successor
owner/annuitant), the death benefit will be:
the greater of:
o the account value or
o any applicable death benefit
Increased by:
o such death benefit less total net contributions, multiplied by 40%.
For purposes of calculating your Protection Plus benefit, the following
applies: (i) "Net contributions" are the total contributions made (or, if
applicable, the total amount that would otherwise have been paid as a death
benefit had the successor owner/annuitant election not been made plus any
subsequent contributions) adjusted for each withdrawal that exceeds your
Protection Plus earnings. "Net contributions" are reduced by the amount of that
excess. Protection Plus earnings are equal to (a) minus (b) where (a) is the
greater of the account value and the death benefit immediately prior to the
withdrawal and (b) is the net contributions as adjusted by any prior
withdrawals; and (ii) "Death benefit" is equal to the greater of the account
value as of the date we receive satisfactory proof of death or any applicable
Guaranteed minimum death benefit as of the date of death.
If the annuitant is age 71 through 75 when we issue your contract (or if the
successor owner/annuitant is between the ages of 71 and 75 when he or she
becomes the successor owner/annuitant and Protection Plus had been elected at
issue), the death benefit will be:
the greater of:
o the account value or
o any applicable death benefit
Contract features and benefits 31
Increased by:
o such death benefit (as described above) less total net contributions,
multiplied by 25%.
The value of the Protection Plus death benefit is frozen on the first contract
date anniversary after the annuitant turns age 80, except that the benefit will
be reduced for withdrawals on a pro rata basis. Reduction on a pro rata basis
means that we calculate the percentage of the current account value that is
being withdrawn and we reduce the benefit by that percentage. For example, if
the account value is $30,000 and you withdraw $12,000, you have withdrawn 40%
of your account value. If the benefit is $40,000 before the withdrawal, it
would be reduced by $16,000 ($40,000 x .40) and the benefit after the
withdrawal would be $24,000 ($40,000 - $16,000).
If you elect Spousal protection, the Protection Plus benefit is based on the
age of the older spouse, who may or may not be the annuitant. Upon the death of
the non-annuitant spouse, the account value will be increased by the value of
the Protection Plus benefit as of the date we receive due proof of death. Upon
the death of the annuitant, the value of the Protection Plus benefit is either
added to the death benefit payment or to the account value if Successor
owner/annuitant is elected. If the surviving spouse elects to continue the
contract, the benefit will be based on the age of the surviving spouse as of
the date of the non-surviving spouse's death for the remainder of the contract.
If the surviving spouse is age 76 or older, the benefit will terminate and the
charge will no longer be in effect. See "Spousal protection" in "Payment of
death benefit" later in this Prospectus for more information.
Protection Plus must be elected when the contract is first issued: neither the
owner nor the successor owner/annuitant can add it subsequently. Ask your
financial professional or see Appendix VI later in this Prospectus to see if
this feature is available in your state.
INHERITED IRA BENEFICIARY CONTINUATION CONTRACT
This contract is available to an individual beneficiary of a traditional IRA or
a Roth IRA where the deceased owner held the individual retirement account or
annuity (or Roth individual retirement account or annuity) with an insurance
company or financial institution other than Equitable. The purpose of the
inherited IRA beneficiary continuation contract is to permit the beneficiary to
change the funding vehicle that the deceased owner selected ("original IRA")
while taking the required minimum distribution payments that must be made to
the beneficiary after the deceased owner's death. This contract is intended
only for beneficiaries who want to take payments at least annually over their
life expectancy. These payments generally must begin (or must have begun) no
later than December 31 of the calendar year following the year the deceased
owner died. This contract is not suitable for beneficiaries electing the
"5-year rule." See "Beneficiary continuation option for IRA and Roth IRA
contracts" under "Beneficiary continuation option" in "Payment of death
benefit" later in this Prospectus. You should discuss with your tax adviser
your own personal situation. This contract may not be available in all states.
Please speak with your financial professional for further information.
The inherited IRA beneficiary continuation contract can only be purchased by a
direct transfer of the beneficiary's interest under the deceased owner's
original IRA. The owner of the inherited IRA beneficiary continuation contract
is the individual who is the beneficiary of the original IRA. (Certain trusts
with only individual beneficiaries will be treated as individuals for this
purpose). The contract must also contain the name of the deceased owner. In
this discussion, "you" refers to the owner of the inherited IRA beneficiary
continuation contract.
The inherited IRA beneficiary continuation contract can be purchased whether or
not the deceased owner had begun taking required minimum distribution payments
during his or her life from the original IRA or whether you had already begun
taking required minimum distribution payments of your interest as a beneficiary
from the deceased owner's original IRA. You should discuss with your own tax
adviser when payments must begin or must be made.
Under the inherited IRA beneficiary continuation contract:
o You must receive payments at least annually (but can elect to receive
payments monthly or quarterly). Payments are generally made over your life
expectancy determined in the calendar year after the deceased owner's
death and determined on a term certain basis.
o The beneficiary of the original IRA will be the annuitant under the
inherited IRA beneficiary continuation contract. In the case where the
beneficiary is a "See Through Trust," the oldest beneficiary of the trust
will be the annuitant.
o An inherited IRA beneficiary continuation contract is not available for
annuitants over age 70.
o The initial contribution must be a direct transfer from the deceased
owner's original IRA and is subject to minimum contribution amounts. See
"How you can purchase and contribute to your contract" earlier in this
section.
o Subsequent contributions of at least $1,000 are permitted but must be
direct transfers of your interest as a beneficiary from another IRA with a
financial institution other than Equitable, where the deceased owner is
the same as under the original IRA contract.
o You may make transfers among the investment options.
o You may choose at any time to withdraw all or a portion of the account
value. Any partial withdrawal must be at least $300.
o The Guaranteed minimum income benefit, successor owner/
annuitant feature, 12-month dollar cost averaging program, automatic
investment program, GPB Options 1 and 2 and systematic withdrawals are not
available under the Inherited IRA beneficiary continuation contract.
o If you die, we will pay to a beneficiary that you choose the greater of the
annuity account value or the applicable death benefit.
o Upon your death, your beneficiary has the option to continue taking
required minimum distributions based on your remaining life expectancy or
to receive any remaining interest in the contract in a single 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. If your
beneficiary elects to continue to take distributions, we will increase the
account value to equal
32 Contract features and benefits
the applicable death benefit if such death benefit is greater than such
account value as of the date we receive satisfactory proof of death and
any required instructions, information and forms. If you had elected any
enhanced death benefits, they will no longer be in effect and charges for
such benefits will stop. The Guaranteed minimum death benefit will also no
longer be in effect.
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, with a signed letter of instruction electing this right, to our
processing office within 10 days after you receive it. If state law requires,
this "free look" period may be longer. Other state variations may apply.
Generally, your refund will be the same as any other surrender and you will
receive your account value under the contract on the day we receive
notification of your decision to cancel the contract, which will reflect (i)
any investment gain or loss in the variable investment options (less the daily
charges we deduct), (ii) any guaranteed interest in the guaranteed interest
option, and (iii) any positive or negative market value adjustments in the
fixed maturity options through the date we receive your contract. Some states,
however, require that we refund the full amount of your contribution (not
reflecting (i), (ii) or (iii) above). For any IRA contract 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 may 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 and in the SAI for
possible consequences of cancelling your contract.
In addition to the cancellation right described above, if you fully convert an
existing traditional IRA contract to a Roth Conversion IRA contract, you may
cancel your Roth Conversion IRA contract and return to a Rollover IRA contract.
Our processing office, or your financial professional, can provide you with the
cancellation instructions.
Contract features and benefits 33
2. Determining your contract's value
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YOUR ACCOUNT VALUE AND CASH VALUE
Your "account value" is the total of the values you have in: (i) the variable
investment options; (ii) the guaranteed interest option; (iii) market adjusted
amounts in the fixed maturity options; and (iv) the loan reserve account
(applicable to Rollover TSA contracts only).
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) the
total amount or a pro rata portion of the annual administrative charge, as well
as optional benefit charges; and (ii) the amount of any outstanding loan plus
accrued interest (applicable to Rollover TSA contracts only). Please see
"Surrendering 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.
The unit value for each variable investment option depends on the investment
performance of that option, less daily charges for:
(i) mortality and expense;
(ii) administrative expenses; and
(iii) distribution charges.
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;
(iii) increased to reflect a transfer into, or decreased to reflect a
transfer out of, a variable investment option; or
(iv) increased or decreased to reflect a transfer of your loan amount from
or to the loan reserve account under a Rollover TSA contract.
In addition, when we deduct the enhanced death benefit, Guaranteed minimum
income benefit, GPB Option 2 and/or the Protection Plus benefit charges, the
number of units credited to your contract will be reduced. Your units are also
reduced when we deduct the annual administrative charge. 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
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, which reflects withdrawals out of
the option and charges we deduct. 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, provided there have been
no withdrawals or transfers.
TERMINATION OF YOUR CONTRACT
Your contract will terminate without value if your account value is
insufficient to pay any applicable charges when due. Your account value could
become insufficient due to withdrawals and/or poor market performance. Upon
such termination, you will lose any applicable guaranteed benefits.
See Appendix VI later in this Prospectus for any state variations with regard
to terminating your contract.
34 Determining your contract's value
3. Transferring your money among investment options
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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 may not transfer to a fixed maturity option that has a rate to maturity
of 3% or less.
o You may not transfer any amount to the 12-month dollar cost averaging
program.
o If the annuitant is age 76-80, you must limit your transfers to fixed
maturity options with maturities of seven years or less. If the annuitant
is age 81 or older, you must limit your transfers to fixed maturity
options of five years or less. As of February 13, 2004 maturities of less
than eight years were not available. Also, the maturity dates may be no
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 and affect
your GPB.
o During the first contract year, transfers into the guaranteed interest option
are not permitted.
o After the first contract year, a transfer into the guaranteed interest option
will not be permitted if such transfer would result in more than 25% of
the annuity account value being allocated to the guaranteed interest
option, based on the annuity account value as of the previous business day.
o No transfers are permitted into the Special 10 year fixed maturity option.
In addition, we reserve the right to restrict transfers among variable
investment options as described in your contract, including limitations on the
number, frequency, or dollar amount of transfers.
The maximum amount that may be transferred from the guaranteed interest option
to any investment option (including amounts transferred pursuant to the
fixed-dollar option and interest sweep option dollar cost averaging programs
described under "Allocating your contributions" in "Contract features and
benefits" earlier in this Prospectus) in any contract year is the greatest of:
(a) 25% of the amount you have in the guaranteed interest option on the last
day of the prior contract year; or
(b) the total of all amounts transferred at your request from the guaranteed
interest option to any of the Investment options in the prior contract
year; or
(c) 25% of amounts transferred or allocated to the guaranteed interest option
during the current contract year.
From time to time, we may remove the restrictions regarding transferring
amounts out of the guaranteed interest option. 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,
if any dollar cost averaging transfer out of the guaranteed interest option
causes a violation of the 25% outbound restriction, that dollar cost averaging
program will be terminated for the current contract year. A new dollar cost
averaging program can be started in the next or subsequent contract years.
You may request a transfer in writing, by telephone using TOPS or through
EQAccess. You must send in all written transfer requests directly to our
processing office. Transfer requests should specify:
(1) the contract number,
(2) the dollar amounts or percentages of your current account value 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 Accumulator(R) Select(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.
Frequent transfers, including market timing and other program trading
strategies, may be disruptive to the underlying portfolios in which the
variable investment options invest. Disruptive transfer activity may hurt the
long term performance of a portfolio by, for example, requiring it to maintain
larger amounts of cash or to liquidate portfolio holdings at a disadvantageous
time or price. We currently use the procedures described below to discourage
disruptive transfer activity in AXA Premier VIP Trust and EQ Advisors Trust.
You should understand, however, that these procedures are subject to the
following limitations: (1) they do not eliminate the possibility that
disruptive transfer activity, including market timing, will occur or that
portfolio performance will be affected by such activity; (2) the design of
these procedures involves inherently subjective judgments, which we and AXA
Premier VIP Trust and EQ Advisors Trust seek to make in a fair and reasonable
manner consistent with interests of all policy and contract owners. Certain
frequent transfer activities attempt to exploit inefficiencies in how portfolio
securities are valued. Please see the prospectuses for the underlying
portfolios for more information on how portfolio shares are priced.
If we determine that your transfer patterns are disruptive, 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. In
making these determinations, we may consider the
Transferring your money among investment options 35
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 reduce disruptive activity, we
monitor the frequency of transfers, including the size of transfers in relation
to portfolio assets, in each underlying portfolio. When a potentially
disruptive transfer into or out of a portfolio occurs on a day when the
portfolio's aggregate deposits or aggregate redemptions exceed our monitoring
threshold, we may take the actions described above to restrict availability of
voice, fax and automated transaction services. We currently apply such action
for the remaining life of each affected contract. We also currently provide a
letter to owners who have engaged in disruptive transfer activity of our
intention to restrict access to communication 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 potentially disruptive transfer
activity and our monitoring procedures and thresholds, as well as change our
procedures to restrict this activity.
Our ability to monitor potentially disruptive transfer activity is limited in
certain circumstances. Group annuity contracts may be owned by retirement plans
on whose behalf we provide transfer instructions on an omnibus (aggregate)
basis, which may mask the disruptive transfer activity of individual plan
participants, and/or interfere with our ability to restrict communication
services. Also, underlying portfolios that are not in AXA Premier VIP Trust or
EQ Advisors Trust may be available for investment through companies that may
have policies and procedures regarding disruptive transfer activity that are
different from ours. Please see the prospectuses for those underlying
portfolios for more information.
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 on a contract year basis).
Rebalancing will occur on the same day of the month as the contract date. If a
contract is established after the 28th, rebalancing will occur on the first
business day of the month following the contract issue date.
While your rebalancing program is in effect, we will transfer amounts among the
variable investment options 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.
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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. 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; your rebalancing allocations will not be changed, and
the rebalancing program will remain in effect unless you request that it be
canceled in writing. There is no charge for the rebalancing feature.
You may not elect the rebalancing program if you are participating in any
dollar cost or 12 month dollar cost averaging program. Rebalancing is not
available for amounts you have allocated to the guaranteed interest option or
the fixed maturity options.
36 Transferring your money among investment options
4. Accessing your money
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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. If you request to withdraw more than 90% of
a contract's current cash value, we will treat it as a request to surrender the
contract for its cash value. In addition, we have the right to pay the cash
value and terminate this contract if no contributions are made during the last
three completed contract years, and the account value is less than $500, or if
you make a withdrawal that would result in a cash value of less than $500. See
"Surrendering your contract to receive its cash value" below. For the tax
consequences of withdrawals, see "Tax information" later in this Prospectus and
in the SAI.
Please see "Termination of your contract" in "Determining your contract value"
earlier in this Prospectus and "How withdrawals (and transfers out of the
Special 10 year fixed maturity option) affect your Guaranteed minimum income
benefit, Guaranteed minimum death benefit and Guaranteed principal benefit
option 2" below for more information on how withdrawals affect your guaranteed
benefits and could potentially cause your contract to terminate.
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Method of withdrawal
------------------------------------------------------------
Lifetime
required
Substantially minimum
Contract Lump sum Systematic equal distribution
- --------------------------------------------------------------------------------
NQ Yes Yes No No
- --------------------------------------------------------------------------------
Rollover IRA Yes Yes Yes Yes
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Roth
Conversion IRA Yes Yes Yes No
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Rollover TSA* Yes Yes No Yes
- --------------------------------------------------------------------------------
Inherited IRA Yes No No **
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* For some Rollover TSA contracts, your ability to take withdrawals, loans
or surrender your contract may be limited. You must provide withdrawal
restriction information when you apply for a contract. See "Tax Sheltered
Annuity contracts (TSAs)" in "Tax information" later in this Prospectus
and in the SAI.
** This contract pays out post-death required minimum distributions. See
"Inherited beneficiary contract" in "Contract, features and benefits"
earlier in this Prospectus.
LUMP SUM WITHDRAWALS
(All contracts)
You may take lump sum withdrawals from your account value at any time.
(Rollover TSA contracts may have restrictions.) The minimum amount you may
withdraw is $300.
Under Rollover TSA contracts, if a loan is outstanding, you may only take lump
sum withdrawals as long as the cash value remaining after any withdrawal equals
at least 10% of the outstanding loan plus accrued interest.
SYSTEMATIC WITHDRAWALS
(NQ, Rollover TSA and Rollover IRA and Roth Conversion IRA contracts)
You may take systematic withdrawals of a particular dollar amount or a
particular percentage of your account value. (Rollover TSA contracts may have
restrictions).
You may take systematic withdrawals on a monthly, quarterly or annual basis as
long as the withdrawals do not exceed the following percentages of your account
value: 0.8% monthly, 2.4% quarterly and 10.0% annually. The minimum amount you
may take in each systematic withdrawal is $250. If the amount withdrawn would
be less than $250 on the date a withdrawal is to be taken, we will not make a
payment and we will terminate your systematic withdrawal election.
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, we
will make the withdrawals on the same calendar day of the month as the contract
date. You must wait at least 28 days after your contract is issued before your
systematic withdrawals can begin.
You may elect to take systematic withdrawals at any time. If you own an IRA
contract, you may elect this withdrawal method only if you are between ages
59-1/2 and 70-1/2.
You may change the payment frequency, or the amount or percentage of your
systematic withdrawals, once each contract year. However, you may not change
the amount or percentage in any contract year in which you have already taken a
lump sum withdrawal. You can cancel the systematic withdrawal option at any
time. This option is not available if you have elected a guaranteed principal
benefit.
SUBSTANTIALLY EQUAL WITHDRAWALS
(All Rollover IRA and Roth Conversion IRA contracts)
We offer our "substantially equal withdrawals option" to allow you to receive
distributions from your account value without triggering the 10% additional
federal income tax penalty, which normally applies to distributions made before
age 59-1/2. See "Tax information" later in this Prospectus and in the SAI. We
use one of the IRS-approved methods for doing this; this is not the exclusive
method of meeting this exception. After consultation with your tax adviser, you
may decide to use another method which would require you to compute amounts
yourself and request lump sum withdrawals. In any such case, a withdrawal
charge may apply. Once you begin to take substantially equal withdrawals, you
should not stop them or change the pattern of your withdrawals until after the
later of age 59-1/2 or five full years after the first withdrawal. If you stop
or change the withdrawals or take a lump sum withdrawal, you may be liable for
the 10% federal tax penalty that would have otherwise been due on prior
withdrawals made under this option and for any interest on the delayed payment
of the penalty.
In accordance with IRS guidance, an individual who has elected to receive
substantially equal withdrawals may change, without penalty, from one of the
IRS-approved methods of calculating fixed payments
Accessing your money 37
to another IRS-approved method (similar to the required minimum distribution
rules) of calculating payments which vary each year.
You may elect to take substantially equal withdrawals at any time before age
59-1/2. 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. You may not elect to
receive the first payment in the same contract year in which you took a lump
sum withdrawal. We will calculate the amount of your substantially equal
withdrawals using the IRS-approved method we offer. The payments will be made
monthly, quarterly or annually as you select. These payments will continue
until we receive written notice from you to cancel this option or you take a
lump sum withdrawal. You may elect to start receiving substantially equal
withdrawals again, but the payments may not restart in the same contract year
in which you took a lump sum withdrawal. We will calculate the new withdrawal
amount. This option is not available if you have elected a guaranteed principal
benefit.
LIFETIME REQUIRED MINIMUM DISTRIBUTION WITHDRAWALS
(Rollover IRA and Rollover TSA contracts only -- See "Tax information" later in
this Prospectus and in the SAI)
We offer our "automatic required minimum distribution (RMD) service" to help
you meet lifetime required minimum distributions under federal income tax
rules. This is not the exclusive way for you to meet these rules. After
consultation with your tax adviser, you may decide to compute required minimum
distributions yourself and request lump sum withdrawals.
You may elect this service in the year in which you reach age 70-1/2 or in any
later year. The minimum amount we will pay out is $250. Currently, minimum
distribution withdrawal payments will be made annually. See "Required minimum
distributions" in "Tax information" later in this Prospectus and in the SAI for
your specific type of retirement arrangement.
Under Rollover TSA contracts, you may not elect our automatic RMD service if a
loan is outstanding.
- --------------------------------------------------------------------------------
For Rollover IRA and Rollover TSA contracts, 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).
- --------------------------------------------------------------------------------
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 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 (other than the Special 10 year fixed
maturity option) in the order of the earliest maturity date(s) first. If such
amounts are still insufficient, we will deduct any remaining portion from the
Special 10 year fixed maturity option. If the contract is surrendered or
annuitized or a death benefit is paid, we will deduct a pro rata portion of the
charge for that year. A market value adjustment will apply to withdrawals from
the fixed maturity options (including the Special 10 year fixed maturity
option).
HOW WITHDRAWALS (AND TRANSFERS OUT OF THE SPECIAL 10 YEAR FIXED MATURITY
OPTION) AFFECT YOUR GUARANTEED MINIMUM INCOME BENEFIT, GUARANTEED MINIMUM DEATH
BENEFIT AND GUARANTEED PRINCIPAL BENEFIT OPTION 2
In general, withdrawals will reduce your guaranteed benefits 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
benefit by the 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
benefit was $40,000 before the withdrawal, it would be reduced by $16,000
($40,000 X .40) and your new benefit after the withdrawal would be $24,000
($40,000 - $16,000).
Transfers out of the Special 10 year fixed maturity option will reduce the GPB
Option 2 amount on a pro rata basis. In addition, if you make a contract
withdrawal from the Special 10 year fixed maturity option, we will reduce your
GPB Option 2 in a similar manner; however, the reduction will reflect both a
transfer out of the Special 10 year fixed maturity option and a withdrawal from
the contract. Therefore, the reduction in the GPB Option 2 is greater when you
take a contract withdrawal from the Special 10 year fixed maturity option than
it would be if you took the withdrawal from another investment option.
Similar to the example above, if your account value is $30,000 and you withdraw
$12,000 from the Special 10 year fixed maturity option, you have withdrawn 40%
of your account value. If your GPB Option 2 benefit was $40,000 before the
withdrawal, the reduction to reflect the transfer out of the Special 10 year
fixed maturity option would equal $16,000 ($40,000 x .40). The amount used to
calculate the reduction to reflect the withdrawal from the contract is $24,000
($40,000 - $16,000). The reduction to reflect the withdrawal would equal $9,600
($24,000 x .40), and your new benefit after the withdrawal would be $14,400
($24,000 - $9,600).
With respect to the Guaranteed minimum income benefit and the greater of 6%
Roll up to age 85 or the Annual Ratchet to age 85 enhanced death benefit,
withdrawals will reduce each of the benefits' 6% Roll up to age 85 benefit base
on a dollar-for-dollar basis, as long as the sum of withdrawals in a contract
year is 6% or less of the 6% Roll up benefit base on the most recent contract
date anniversary. Once a withdrawal is taken that causes the sum of withdrawals
in a contract year to exceed 6% of the benefit base on the most recent
anniversary, that entire withdrawal and any subsequent withdrawals in that same
contract year will reduce the benefit base pro rata. Reduction on a
dollar-for-dollar basis means that your 6% Roll up to age 85 benefit base will
be reduced by the dollar amount of the withdrawal for each Guaranteed benefit.
The Annual Ratchet to age 85 benefit base will always be reduced on a pro rata
basis.
LOANS UNDER ROLLOVER TSA CONTRACTS
You may take loans from a Rollover TSA unless restricted by the employer who
provided the Rollover TSA funds. If you cannot take a
38 Accessing your money
loan, or cannot take a loan without approval from the employer who provided the
funds, we will have this information in our records based on what you and the
employer who provided the funds told us when you purchased your contract. The
employer must also tell us whether special employer plan rules of the Employee
Retirement Income Security Act of 1974 ("ERISA") apply. We will not permit you
to take a loan while you are enrolled in our "automatic required minimum
distribution (RMD) service."
You should read the terms and conditions on our loan request form carefully
before taking out a loan. Under Rollover TSA contracts subject to ERISA, you
may only take a loan with the written consent of your spouse. Your contract
contains further details of the loan provision. Please see Appendix VI later in
this Prospectus for any state restrictions you may be subject to if you take a
loan from a Rollover TSA contract. Also, see "Tax information" later in this
Prospectus for general rules applicable to loans.
We will permit you to have only one loan outstanding at a time. The minimum
loan amount is $1,000. The maximum amount is $50,000 or, if less, 50% of your
account value, subject to any limits under the federal income tax rules. The
term of a loan is five years. However, if you use the loan to acquire your
primary residence, the term is 10 years. The term may not extend beyond the
earliest of:
(1) the date annuity payments begin,
(2) the date the contract terminates, and
(3) the date a death benefit is paid (the outstanding loan will be deducted
from the death benefit amount).
A loan request under your Rollover TSA contract will be processed on the first
business day of the month following the date on which the properly completed
loan request form is received. Interest will accrue daily on your outstanding
loan at a rate we set. The loan interest rate will be equal to the Moody's
Corporate Bond Yield Averages for Baa bonds for the calendar month ending two
months before the first day of the calendar quarter in which the rate is
determined.
LOAN RESERVE ACCOUNT. On the date your loan is processed, we will transfer the
amount of your loan to the loan reserve account. Unless you specify otherwise,
we will subtract your loan on a pro rata basis from your value in the variable
investment options and the guaranteed interest option. If these amounts are
insufficient, any additional amount of the loan will be subtracted from the
fixed maturity options (other than the Special 10 year fixed maturity option)
in the order of the earliest maturity date(s) first. If such amounts are still
insufficient, we will deduct any remaining portion from the Special 10 year
fixed maturity option. A market value adjustment will apply to withdrawals from
the fixed maturity options (including the Special 10 year fixed maturity
option). If the amounts are withdrawn from the Special 10 year fixed maturity
option, the guaranteed benefit will be adversely affected. See "Guaranteed
principal benefit option 2" in "Contract features and benefits" earlier in this
Prospectus.
We will credit interest to the amount in the loan reserve account at a rate of
2% lower than the loan interest rate that applies for the time your loan is
outstanding. On each contract date anniversary after the date the loan is
processed, we will transfer the amount of interest earned in the loan reserve
account to the variable investment options on a pro rata basis. When you make a
loan repayment, unless you specify otherwise, we will transfer the dollar
amount of the loan repaid from the loan reserve account to the investment
options according to the allocation percentages we have on our records.
SURRENDERING 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. (Rollover
TSA contracts may have restrictions.) 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.
For the tax consequences of surrenders, see "Tax information" later in this
Prospectus and in the SAI.
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, payment of a death benefit, payment of any amount you
withdraw and, upon surrender, 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 value in the guaranteed interest
option and 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 10 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
Equitable Accumulator(R) Select(SM) offers you several choices of annuity payout
options. Some enable you to receive fixed annuity payments, which can be either
level or increasing, 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. In addition, if you are exercising your Guaranteed minimum
income benefit, your choice of payout
Accessing your money 39
options are those that are available under the Guaranteed minimum income
benefit (see "Our Guaranteed minimum income benefit option" in "Contract
features and benefits" earlier in this Prospectus).
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Fixed annuity payout options Life annuity
Life annuity with period certain
Life annuity with refund certain
Period certain annuity
- --------------------------------------------------------------------------------
Variable Immediate Annuity Life annuity
payout options (not available in New York)
Life annuity with period certain
- --------------------------------------------------------------------------------
Income Manager payout options Life annuity with period certain
(available for annuitants age 83 Period certain annuity
or less at contract issue)
- --------------------------------------------------------------------------------
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. 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.
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 guaranteed 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 OPTIONS
With fixed annuities, we guarantee fixed annuity payments will be based either
on the tables of guaranteed annuity purchase factors in your contract or on our
then current annuity purchase factors, 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 Immediate Annuities may be funded through your choice of available
variable investment options investing in portfolios of EQ Advisors Trust and
AXA Premier VIP Trust. The contract also offers a fixed income annuity payout
option that can be elected in combination with the variable annuity payout
option. The amount of each variable income 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.
INCOME MANAGER PAYOUT OPTIONS
The Income Manager payout annuity contracts differ from the other payout
annuity contracts. The other payout annuity contracts may provide higher or
lower income levels, but do not have all the features of the Income Manager
payout annuity contract. You may request an illustration of the Income Manager
payout annuity contract from your financial professional. Income Manager payout
options are described in a separate prospectus that is available from your
financial professional. Before you select an Income Manager payout option, you
should read the prospectus which contains important information that you should
know.
Both NQ and IRA Income Manager payout options provide guaranteed level
payments. The Income Manager (life annuity with period certain) also provides
guaranteed increasing payments (NQ contracts only).
For Rollover TSA contracts, if you want to elect an Income Manager payout
option, we will first roll over amounts in such contract to a Rollover IRA
contract with the plan participant as owner.
You may choose to apply only part of the account value of your Equitable
Accumulator(R) Select(SM) contract to an Income Manager payout annuity. In this
case, we will consider any amounts applied as a withdrawal from your Equitable
Accumulator(R) Select(SM). For the tax consequences of withdrawals, see "Tax
information" later in this Prospectus and in the SAI.
Depending upon your circumstances, an Income Manager contract may be purchased
on a tax-free basis. Please consult your tax adviser. The Income Manager payout
options are not available in all states.
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 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.
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
40 Accessing your money
require you to return your contract before annuity payments begin. The contract
owner and annuitant must meet the issue age and payment requirements.
You can choose the date annuity payments begin but it may not be earlier than
thirteen months from the Equitable Accumulator(R) Select(SM) contract date.
Except with respect to the Income Manager annuity payout options, where
payments are made on the 15th day of each month, 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 annuity maturity date described below.
The amount of the annuity payments will depend on the amount applied to
purchase the annuity and the applicable annuity purchase factors, discussed
earlier.
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.
ANNUITY MATURITY DATE
Your contract has a maturity date by which you must either take a lump sum
withdrawal or select an annuity payout option. The maturity date is generally
the contract date anniversary that follows the annuitant's 95th birthday.
Please see Appendix VI later in this Prospectus for more detailed information
on the annuity maturity date in New York and Pennsylvania.
Before the last day 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: (i) transfers (if permitted in
the future) among the variable investment options if a Variable Immediate
Annuity payout option is selected; and (ii) withdrawals or contract surrender
(subject to a market value adjustment) if an Income Manager payout option is
chosen.
Accessing your money 41
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 An administrative charge
o A distribution charge
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 each contract date anniversary -- an annual administrative charge, if
applicable.
o On each contract date anniversary -- a charge if you elect a death benefit
(other than the Standard death benefit).
o On each contract date anniversary -- a charge for the Guaranteed minimum
income benefit, if you elect this optional benefit.
o On each contract date anniversary -- a charge for Protection Plus, if you
elect this optional benefit.
o On the first 10 contract date anniversaries -- a charge for GPB Option 2, if
you elect this optional 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.
The charges under the contracts are designed to cover, in the aggregate, our
direct and indirect costs of selling, administering and providing benefits
under the contracts. They are also designed, in the aggregate, to compensate us
for the risks of loss we assume pursuant to the contracts. If, as we expect,
the charges that we collect from the contracts exceed our total costs in
connection with the contracts, we will earn a profit. Otherwise, we will incur
a loss.
The rates of certain of our charges have been set with reference to estimates
of the amount of specific types of expenses or risks that we will incur. In
most cases, this Prospectus identifies such expenses or risks in the name of
the charge; however, the fact that any charge bears the name of, or is designed
primarily to defray, a particular expense or risk does not mean that the amount
we collect from that charge will never be more than the amount of such expense
or risk. Nor does it mean that we may not also be compensated for such expense
or risk out of any other charges we are permitted to deduct by the terms of the
policies.
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.
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 Standard
guaranteed minimum death benefit. The daily charge is equivalent to an annual
rate of 1.10% 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 income 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. Lastly,
we assume a mortality risk to the extent that at the time of death, the
guaranteed minimum 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.
ADMINISTRATIVE CHARGE
We deduct a daily charge from the net assets in each variable investment option
to compensate us for administrative expenses under the contracts. The daily
charge is equivalent to an annual rate of 0.25% of the net assets in each
variable investment option.
DISTRIBUTION CHARGE
We deduct a daily charge from the net assets in each variable investment option
to compensate us for a portion of our sales expenses under the contracts. The
daily charge is equivalent to an annual rate of 0.35% of the net assets in each
variable investment option.
ANNUAL ADMINISTRATIVE CHARGE
We deduct an administrative charge from your account value on each contract
date anniversary. We deduct the charge if your account value on the last
business day of the contract year is less than $50,000. If your account value
on such date is $50,000 or more, we do not deduct the charge. During the first
two contract years, the charge is equal to $30 or, if less, 2% of your account
value. The charge is $30 for contract years three and later.
We will deduct this charge from your value in the variable investment options
and the guaranteed interest option (see Appendix VI later in this Prospectus to
see if deducting this charge from the guaranteed interest option is permitted
in your state) on a pro rata basis. If those amounts are insufficient, we will
deduct all or a portion of the charge from the fixed maturity options (other
than the Special 10 year fixed maturity option) in the order of the earliest
maturity date(s) first. If
42 Charges and expenses
such amounts are still insufficient, we will deduct any remaining portion from
the Special 10 year fixed maturity option. If the contract is surrendered or
annuitized or a death benefit is paid, we will deduct a pro rata portion of the
charge for that year. A market value adjustment will apply to deductions from
the fixed maturity options (including the Special 10 year fixed maturity
option).
If your account value is insufficient to pay this charge, your contract will
terminate without value and you will lose any applicable guaranteed benefits.
Please see "Termination of your contract" in "Determining your contract value"
earlier in this Prospectus.
GUARANTEED MINIMUM DEATH BENEFIT CHARGE
ANNUAL RATCHET TO AGE 85. If you elect the Annual Ratchet to age 85 enhanced
death benefit, we deduct a charge annually from your account value on each
contract date anniversary for which it is in effect. The charge is equal to
0.25% of the Annual Ratchet to age 85 benefit base.
GREATER OF 6% ROLL UP TO AGE 85 OR ANNUAL RATCHET TO AGE 85. If you elect this
enhanced death benefit, we deduct a charge annually from your account value on
each contract date anniversary for which it is in effect. The charge is equal
to 0.60% of the greater of the 6% Roll up to age 85 or the Annual Ratchet to
age 85 benefit base.
We will deduct this charge from your value in the variable investment options
and the guaranteed interest option (see Appendix VI later in this Prospectus to
see if deducting this charge from the guaranteed interest option is permitted
in your state) on a pro rata basis. If those amounts are insufficient, we will
deduct all or a portion of the charge from the fixed maturity options (other
than the Special 10 year fixed maturity option) in the order of the earliest
maturity date(s) first. If such amounts are still insufficient, we will deduct
any remaining portion from the Special 10 year fixed maturity option. If the
contract is surrendered or annuitized or a death benefit is paid, we will
deduct a pro rata portion of the charge for that year. A market value
adjustment will apply to deductions from the fixed maturity options (including
the Special 10 year fixed maturity option).
If your account value is insufficient to pay this charge, your contract will
terminate without value and you will lose any applicable guaranteed benefits.
Please see "Termination of your contract" in "Determining your contract value"
earlier in this Prospectus.
There is no additional charge for the standard death benefit.
GUARANTEED PRINCIPAL BENEFIT OPTION 2
If you purchase GPB Option 2, we deduct a charge annually from your account
value on the first 10 contract date anniversaries. The charge is equal to 0.50%
of the account value. We will deduct this charge from your value in the
variable investment options and the guaranteed interest option (see Appendix VI
later in this Prospectus to see if deducting this charge from the guaranteed
interest option is permitted in your state) on a pro rata basis. If these
amounts are insufficient, we will deduct any remaining portion of the charge
from amounts in any fixed maturity options (other than the Special 10 year
fixed maturity option) in the order of the earliest maturity date(s) first. If
such amounts are still insufficient, we will deduct any remaining portion from
the Special 10 year fixed maturity option. If the contract is surrendered or
annuitized or a death benefit is paid, we will deduct a pro rata portion of the
charge for that year. A market value adjustment will apply to deductions from
the fixed maturity options (including the Special 10 year fixed maturity
option).
GUARANTEED MINIMUM INCOME BENEFIT CHARGE
If you elect the Guaranteed minimum income benefit, we deduct a charge annually
from your account value on each contract date anniversary until such time as
you exercise the Guaranteed minimum income benefit, elect another annuity
payout option, or the contract date anniversary after the annuitant reaches 85,
whichever occurs first. The charge is equal to 0.65% of the applicable benefit
base in effect on the contract date anniversary.
We will deduct this charge from your value in the variable investment options
and the guaranteed interest option (see Appendix VI later in this Prospectus to
see if deducting this charge from the guaranteed interest option is permitted
in your state) on a pro rata basis. If those amounts are still insufficient, we
will deduct all or a portion of the charge from the fixed maturity options in
the order of the earliest maturity date(s) first. If the contract is
surrendered or annuitized or a death benefit is paid, we will deduct a pro rata
portion of the charge for that year. A market value adjustment will apply to
deductions from the fixed maturity options.
If your account value is insufficient to pay this charge, your contract will
terminate without value and you will lose any applicable guaranteed benefits.
Please see "Termination of your contract" in "Determining your contract value"
earlier in this Prospectus.
PROTECTION PLUS
If you elect Protection Plus, we deduct a charge annually from your account
value on each contract date anniversary for which it is in effect. The charge
is equal to 0.35% of the account value on each contract date anniversary. We
will deduct this charge from your value in the variable investment options and
the guaranteed interest option on a pro rata basis. If those amounts are
insufficient, we will deduct all or a portion of the charge from the fixed
maturity options (other than the Special 10 year fixed maturity option) in the
order of the earliest maturity date(s) first. If such amounts are still
insufficient, we will deduct any remaining portion from the Special 10 year
fixed maturity option. If the contract is surrendered or annuitized or a death
benefit is paid, we will deduct a pro rata portion of the charge for that year.
A market value adjustment will apply to deductions from the fixed maturity
options (including the Special 10 year fixed maturity option).
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 jurisdiction and ranges from 0% to 3.5%.
VARIABLE IMMEDIATE ANNUITY PAYOUT OPTION ADMINISTRATIVE FEE
We deduct a fee of $350 from the amount to be applied to the Variable Immediate
Annuity payout option.
Charges and expenses 43
CHARGES THAT THE TRUSTS DEDUCT
The Trusts deduct charges for the following types of fees and expenses:
o Management fees ranging from 0.10% to 1.50%.
o 12b-1 fees of either 0.25% or 0.35%.
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 prospectuses for the Trusts.
GROUP OR SPONSORED ARRANGEMENTS
For certain group or sponsored arrangements, we may reduce the mortality and
expense risks charge or change the minimum initial contribution requirements.
We also may change the Guaranteed minimum income benefit or the Guaranteed
minimum death benefit, or offer variable investment options that invest in
shares of the Trusts 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 Rollover IRA and Roth Conversion 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,
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.
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 would be
unfairly discriminatory.
44 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 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. You may be
limited as to the beneficiary you can designate in a Rollover TSA contract.
Where an NQ contract is owned by a minor pursuant to the Uniform Gift to Minors
Act or the Uniform Transfer to Minors Act, the beneficiary must be the estate
of the annuitant. Where an IRA contract is owned in a custodial individual
retirement account, the custodian must be the beneficiary so that the custodian
can reinvest or distribute the death benefit as the beneficiary of the account
desires.
The death benefit is equal to your account value (without adjustment for any
otherwise applicable negative market value adjustment) or, if greater, the
applicable Guaranteed minimum death benefit. We determine the amount of the
death benefit (other than the applicable Guaranteed minimum death benefit) and
any amount applicable under the Protection Plus feature, 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.
The amount of the applicable Guaranteed minimum death benefit will be such
Guaranteed minimum death benefit as of the date of the annuitant's death,
adjusted for any subsequent withdrawals. The death benefit will be less a
deduction for any outstanding loan plus accrued interest on the date that the
death benefit payment is made (applies to Rollover TSA only).
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, a
surviving spouse, who is the sole primary beneficiary, of the deceased
owner/annuitant can choose to be treated as the successor owner/annuitant and
continue the contract. The Successor owner/ annuitant feature is only
available under NQ and individually owned IRA (other than Inherited IRAs)
contracts. See "Inherited IRA beneficiary continuation contract" in "Contracts
features and benefits," earlier in this Prospectus.
For NQ and 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.
When the owner is not the annuitant under an NQ contract and the owner dies
before annuity payments begin, the beneficiary named to receive this death
benefit upon the annuitant's death will become the successor owner. If you do
not want this beneficiary 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. The surviving
owner automatically takes the place of any other beneficiary designation.
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. An eligible successor owner,
including a surviving joint owner after the first owner dies, may elect the
beneficiary continuation option for NQ contracts discussed in "Beneficiary
continuation option" below.
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.
SUCCESSOR OWNER AND ANNUITANT
If you are both the contract owner and the annuitant, and your spouse is the
sole primary beneficiary or the joint owner, then your spouse may elect to
receive the death benefit or continue the contract as successor
Payment of death benefit 45
owner/annuitant. The successor owner/annuitant must be 85 or younger as of the
date of the non-surviving spouse's death.
If your surviving spouse decides to continue the contract, then as of the date
we receive satisfactory proof of your death, any required instructions,
information and forms necessary to effect the Successor owner/annuitant
feature, we will increase the account value to equal your elected Guaranteed
minimum death benefit as of the date of your death if such death benefit is
greater than such account value, plus any amount applicable under the
Protection Plus feature and adjusted for any subsequent withdrawals. 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.
We will determine whether your applicable Guaranteed minimum death benefit
option will continue as follows:
o If the successor owner/annuitant is age 75 or younger on the date of the
original owner/annuitant's death, and the original owner/ annuitant was
age 84 or younger at death, the guaranteed minimum death benefit continues
based upon the option that was elected by the original owner/annuitant and
will continue to grow according to its terms until the contract date
anniversary following the date the successor owner/annuitant reaches age
85.
o If the successor owner/annuitant is age 75 or younger on the date of the
original owner/annuitant's death, and the original owner/ annuitant was
age 85 or older at death, we will reinstate the Guaranteed minimum death
benefit that was elected by the original owner/annuitant. The benefit will
continue to grow according to its terms until the contract date anniversary
following the date the successor owner/annuitant reaches age 85.
o If the successor owner/annuitant is age 76 or over on the date of the
original owner/annuitant's death, the Guaranteed minimum death benefit
will no longer grow, and we will no longer charge for the benefit.
Where an IRA contract is owned in a custodial individual retirement account,
and your spouse is the sole beneficiary of the account, the custodian may
request that the spouse be substituted as annuitant after your death.
For information on the operation of this feature with the Guaranteed minimum
income benefit, see "Exercise of Guaranteed minimum income benefit" under "Our
Guaranteed minimum income benefit option" in "Contract features and benefits,"
earlier in this Prospectus. For information on the operation of this feature
with Protection Plus, see "Protection Plus" in "Guaranteed minimum death
benefit "under "Contract features and benefits," earlier in this Prospectus.
SPOUSAL PROTECTION
SPOUSAL PROTECTION OPTION FOR NQ CONTRACTS ONLY. This feature permits spouses
who are joint contract owners to increase the account value to equal the
guaranteed minimum death benefit, if higher, and by the value of any Protection
Plus benefit, if elected, upon the death of either spouse. This account value
"step up" occurs even if the surviving spouse was the named annuitant. If you
and your spouse jointly own the contract and one of you is the named annuitant,
you may elect the Spousal protection option at the time you purchase your
contract at no additional charge. Both spouses must be between the ages of 20
and 70 at the time the contract is issued and must each be named the primary
beneficiary in the event of the other's death.
The annuitant's age is generally used for the purpose of determining contract
benefits. However, for the Annual Ratchet to age 85 and the Greater of 6% Roll
up to age 85 or the Annual Ratchet to age 85 guaranteed minimum death benefits
and the Protection Plus benefit, the benefit is based on the older spouse's
age. The older spouse may or may not be the annuitant.
If the annuitant dies prior to annuitization, the surviving spouse may elect to
receive the death benefit, including the value of the Protection Plus benefit,
or, if eligible, continue the contract as the sole owner/ annuitant by
electing the successor owner/annuitant option. If the non-annuitant spouse dies
prior to annuitization, the surviving spouse continues the contract
automatically as the sole owner/annuitant. In either case, the contract would
continue, as follows:
o As of the date we receive due proof of the spouse's death, the account value
will be re-set to equal the Guaranteed minimum death benefit as of the
date of the non-surviving spouse's death, if higher, increased by the
value of the Protection Plus benefit.
o The Guaranteed minimum death benefit continues to be based on the older
spouse's age for the life of the contract, even if the younger spouse is
originally or becomes the sole owner/annuitant.
o The Protection Plus benefit will now be based on the surviving spouse's age
at the date of the non-surviving spouse's death for the remainder of the
life of the contract. If the benefit had been previously frozen because
the older spouse had attained age 80, it will be reinstated if the
surviving spouse is age 75 or younger. The benefit is then frozen on the
contract date anniversary after the surviving spouse reaches age 80. If
the surviving spouse is age 76 or older, the benefit will be discontinued
even if the surviving spouse is the older spouse (upon whose age the
benefit was originally based).
We will not allow Spousal protection to be added after contract issue. If there
is a change in owner or primary beneficiary, the Spousal protection benefit
will be terminated. If you divorce but do not change the owner or primary
beneficiary, Spousal protection continues.
BENEFICIARY CONTINUATION OPTION
This feature permits a designated individual, on the contract owner's death, to
maintain a contract in the deceased contract owner's 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, Roth IRA and NQ contracts, subject to state availability. Please speak
with your financial professional or see Appendix VI later in this Prospectus
for further information.
BENEFICIARY CONTINUATION OPTION FOR TRADITIONAL IRA AND ROTH IRA CONTRACTS
ONLY. The beneficiary continuation option must be elected by September 30th of
the year following the calendar year of your death and before any other
inconsistent election is made. Beneficiaries who do not make a timely election
will not be eligible for this 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
46 Payment of death benefit
effect the beneficiary continuation option feature, we will increase the
account value to equal the applicable death benefit if such death benefit is
greater than such account value, plus any amount applicable under the
Protection Plus feature, adjusted for any subsequent withdrawals. Where an IRA
contract is owned in a custodial individual retirement account, the custodian
may reinvest the death benefit in an individual retirement annuity contract,
using the account beneficiary as the annuitant. Please speak with your
financial professional for further information.
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. For sole
spousal beneficiaries, payments may begin by December 31st of the calendar year
in which you would have reached age 70-1/2, if such time is later. For
traditional IRA contracts only, if you die before your Required Beginning Date
for Required Minimum Distributions, as discussed in the Statement of Additional
Information, the beneficiary may choose the "5-year rule" option instead of
annual payments over life expectancy. The 5-year rule is always available to
beneficiaries under Roth IRA contracts. If the beneficiary chooses this option,
the beneficiary may take withdrawals as desired, but the entire account value
must be fully withdrawn by December 31st of the calendar year which contains
the fifth anniversary of your death.
Under the beneficiary continuation option for IRA and Roth IRA contracts:
o The contract continues in your name for the benefit of your beneficiary.
o This feature is only available if the beneficiary is an individual. Certain
trusts with only individual beneficiaries will be treated as individuals
for this purpose.
o If there is more than one beneficiary, each beneficiary's share will be
separately accounted for. It will be distributed over the beneficiary's
own life expectancy, if payments over life expectancy are chosen.
o The minimum amount that is required in order to elect the beneficiary
continuation option is $5,000 for each beneficiary.
o The beneficiary may make transfers among the investment options but no
additional contributions will be permitted.
o If you had elected the Guaranteed minimum income benefit, an optional
enhanced death benefit or GPB Option 2 under the contract, they will no
longer be in effect and charges for such benefits will stop. Also, any
minimum death benefit feature will no longer be in effect.
o The beneficiary may choose at any time to withdraw all or a portion of the
account value.
o 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 required 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.
BENEFICIARY CONTINUATION OPTION FOR NQ CONTRACTS ONLY. This feature, also known
as the Inherited annuity, may only be elected when the NQ contract owner dies
before the annuity commencement date, whether or not the owner and the
annuitant are the same person. If the owner and annuitant are different and the
owner dies before the annuitant, for purposes of this discussion, "beneficiary"
refers to the successor owner. For a discussion of successor owner, see "When
an NQ contract owner dies before the annuitant" earlier in this section. This
feature must be elected within 9 months following the date of your death and
before any other inconsistent election is made. Beneficiaries who do not make a
timely election will not be eligible for this option.
Generally, payments will be made once a year to the beneficiary over the
beneficiary's life expectancy, determined on a term certain basis and in the
year payments start. These payments must begin no later than one year after the
date of your death and are referred to as "scheduled payments." The beneficiary
may choose the "5-year rule" instead of scheduled payments over life
expectancy. If the beneficiary chooses the 5-year rule, there will be no
scheduled payments. Under the 5-year rule, the beneficiary may take withdrawals
as desired, but the entire account value must be fully withdrawn by the fifth
anniversary of your death.
Under the beneficiary continuation option for NQ contracts (regardless of
whether the owner and annuitant are the same person):
o This feature is only available if the beneficiary is an individual. It is
not available for any entity such as a trust, even if all of the
beneficiaries of the trust are individuals.
o The contract continues in your name for the benefit of your beneficiary.
o If there is more than one beneficiary, each beneficiary's share will be
separately accounted for. It will be distributed over the respective
beneficiary's own life expectancy, if scheduled payments are chosen.
o The minimum amount that is required in order to elect the beneficiary
continuation option is $5,000 for each beneficiary.
o The beneficiary may make transfers among the investment options but no
additional contributions will be permitted.
o If you had elected the Guaranteed minimum income benefit, an optional
enhanced death benefit or GPB Option 2 under the contract, they will no
longer be in effect and charges for such benefits will stop. Also, any
minimum death benefit feature will no longer be in effect.
o If the beneficiary chooses the "5-year rule," withdrawals may be made at
any time. If the beneficiary instead chooses scheduled payments, the
beneficiary must also choose between two potential withdrawal options at
the time of election. If the beneficiary
Payment of death benefit 47
chooses "Withdrawal Option 1", the beneficiary cannot later withdraw funds
in addition to the scheduled payments the beneficiary is receiving;
"Withdrawal Option 1" permits total surrender only. "Withdrawal Option 2"
permits the beneficiary to take withdrawals, in addition to scheduled
payments, at any time. However, the scheduled payments under "Withdrawal
Option 1" are afforded favorable tax treatment as "annuity payments." See
"Taxation of nonqualified annuities" in "Tax Information" later in this
Prospectus.
o Any partial withdrawals must be at least $300.
o Your beneficiary will have the right to name a beneficiary to receive any
remaining interest in the contract on the beneficiary's death.
o Upon the death of your beneficiary, the beneficiary he or she has named has
the option to either continue taking scheduled payments based on the
remaining life expectancy of the deceased beneficiary (if scheduled
payments were chosen) or to receive any remaining interest in the contract
in a lump sum. We will pay any remaining interest in the contract in a
lump sum if your beneficiary elects the 5-year rule. 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.
If you are both the owner and annuitant:
o 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 annuity account value to
equal the applicable death benefit if such death benefit is greater than
such account value, plus any amount applicable under the Protection Plus
feature, adjusted for any subsequent withdrawals.
If the owner and annuitant are not the same person:
o If the beneficiary continuation option is elected, the beneficiary
automatically becomes the new annuitant of the contract, replacing the
existing annuitant.
o The annuity account value will not be reset to the death benefit amount.
If a contract is jointly owned:
o The surviving owner supersedes any other named beneficiary and may elect
the beneficiary continuation option.
o If the deceased joint owner was also the annuitant, see "If you are both
the owner and annuitant" earlier in this section.
o If the deceased joint owner was not the annuitant, see "If the owner and
annuitant are not the same person" earlier in this section.
48 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 Equitable Accumulator(R) Select(SM) contracts owned by
United States individual taxpayers. The tax rules can differ, depending on the
type of contract, whether NQ, traditional IRA, Roth IRA or TSA. 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
without notice. 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 or values under the contract, or payments under the contract,
for example, the amounts due to beneficiaries, may be subject to federal or
state gift, estate, or inheritance 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 which can be made to all types of tax-favored retirement plans.
In addition to increasing the amounts which 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 adviser 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") and Code Section 403(b) Arrangements
("TSAs"), respectively: an IRA or 403(b) annuity contract such as this one, or
an IRA or 403(b)(7) 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. More information on IRAs and TSAs
is provided in the SAI. 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 Accumulator(R) Select(SM)'s 12 month dollar cost
averaging, choice of death benefits, the Guaranteed minimum income benefit,
selection of investment funds, guaranteed interest option, fixed maturity
options and its 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 arrangements. You should be aware that cost may vary depending on the
features and benefits made available and the charges and expenses of the
investment options or funds that you elect. Although certain provisions of the
Temporary Regulations on required minimum distributions concerning the actuarial
value of additional contract benefits, which could have increased the amount
required to be distributed from annuity contracts funding qualified plans, TSAs
and IRAs have currently been suspended, these or similar provisions may apply in
future years. You may want to discuss with your tax adviser the potential
implication of these Regulations before you purchase this annuity contract or
purchase additional features under this annuity contract.
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 the 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.
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.
Tax information 49
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 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.
PROTECTION PLUS FEATURE
In order to enhance the amount of the death benefit to be paid at the
annuitant's death, you may purchase a Protection Plus rider for your NQ
contract. Although we regard this benefit as an investment protection feature
which is part of the contract and which should have no adverse tax effect, it
is possible that the IRS could take a contrary position or assert that the
Protection Plus rider is not part of the contract. In such a case the charges
for the Protection Plus rider could be treated for federal income tax purposes
as a partial withdrawal from the contract. If this were so, such a deemed
withdrawal could be taxable, and for contract owners under age 59-1/2, also
subject to a tax penalty. Were the IRS to take this position, Equitable would
take all reasonable steps to attempt to avoid this result, which could include
amending the contract (with appropriate notice to you).
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
Equitable Accumulator(R) Select(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 the contract, of the
source contract carries over to the Equitable Accumulator(R) Select(SM) NQ
contract.
An owner may 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 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. The IRS has not specifically addressed the tax treatment
of the Spousal protection benefit. Please consult with your tax adviser before
electing this feature.
BENEFICIARY CONTINUATION OPTION
We have received a private letter ruling from the IRS regarding certain tax
consequences of scheduled payments under the beneficiary continuation option
for NQ contracts. See the discussion "Beneficiary continuation option for NQ
Contracts only" in "Payment of death benefit" earlier in this Prospectus. Among
other things, the IRS rules that:
o scheduled payments under the beneficiary continuation option for NQ contracts
satisfy the death of owner rules of Section 72(s)(2) of the Code,
regardless of whether the beneficiary elects Withdrawal Option 1 or
Withdrawal Option 2;
o scheduled payments, any additional withdrawals under Withdrawal Option 2, or
contract surrenders under Withdrawal Option 1 will only be taxable to the
beneficiary when amounts are actually paid, regardless of the Withdrawal
Option selected by the beneficiary;
o a beneficiary who irrevocably elects scheduled payments with Withdrawal
Option 1 will receive "excludable amount" tax treatment on scheduled
payments. See "Annuity payments" earlier in this section. If the
beneficiary elects to surrender the contract before all scheduled payments
are paid, the amount received upon surrender is a non-annuity payment
taxable to the extent it exceeds any remaining investment in the contract.
The ruling specifically does not address the taxation of any payments received
by a beneficiary electing Withdrawal Option 2 (whether scheduled payments or
any withdrawal that might be taken). There is no assurance that we will receive
any further rulings addressing the tax consequences of payments under
Withdrawal Option 2. Before electing the beneficiary continuation option
feature, the individuals you designate as beneficiary or successor owner should
discuss with their tax advisers the consequences of such elections.
50 Tax information
The tax treatment of a withdrawal after the death of the owner taken as a
single sum or taken as withdrawals under the 5-year rule is generally the same
as the tax treatment of a withdrawal from or surrender of 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, in accordance with IRS formulas.
INVESTOR CONTROL ISSUES
Under certain circumstances, the IRS has stated that you could be treated as
the owner (for tax purposes) of the assets of Separate Accounts 45 and 49. If
you were treated as the owner, you would be taxable on income and gains
attributable to the shares of the underlying portfolios.
The circumstances that would lead to this tax treatment would be that, in the
opinion of the IRS, you could control the underlying investment of Separate
Accounts 45 and 49. Recently, the IRS has said that the owners of variable
annuities will not be treated as owning the separate account assets provided
the underlying portfolios are restricted to variable life and annuity assets.
The variable annuity owners must have the right only to choose among the
portfolios, and must have no right to direct the particular investment
decisions within the portfolios.
Although we believe that, under current IRS guidance, you would not be treated
as the owner of the assets of Separate Accounts 45 and 49, there are some
issues that remain unclear. For example, the IRS has not issued any guidance as
to whether having a larger number of portfolios available, or an unlimited
right to transfer among them, could cause you to be treated as the owner. We do
not know whether the IRS will ever provide such guidance or whether such
guidance, if unfavorable, would apply retroactively to your contract.
Furthermore, the IRS could reverse its current guidance at any time. We reserve
the right to modify your contract as necessary to prevent you from being
treated as the owner of the assets of Separate Accounts 45 and 49.
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 trustee or custodian holds
the assets for the benefit of the IRA owner. The assets funding the account
typically include mutual funds and/or individual stocks and/or 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; and
o Roth IRAs, 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 (http:// www.irs.gov).
Equitable Life designs its IRA contracts to qualify as individual retirement
annuities under Section 408(b) of the Internal Revenue Code. You may purchase
the contract as a traditional IRA ("Rollover IRA") or Roth IRA ("Roth
Conversion IRA"). We also offer the Inherited IRA for payment of post-death
required minimum distributions in traditional IRA and Roth IRA. The SAI
contains the information that the IRS requires you to have before you purchase
an IRA. The disclosure generally assumes direct ownership of the individual
retirement annuity contract. For contracts owned in a custodial individual
retirement account, the disclosure will apply only if you terminate your
account or transfer ownership of the contract to yourself.
We have not applied for an opinion letter from the IRS to approve the
respective forms of the Equitable Accumulator(R) Select(SM) traditional and Roth
IRA contracts for use as a traditional and Roth IRA, respectively. We have
received IRS opinion letters approving the respective forms of a similar
traditional IRA and Roth IRA endorsement for use as a traditional 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 contracts submitted for IRS approval do not include every
feature possibly available under the Equitable Accumulator(R) traditional and
Roth IRA contracts.
Tax information 51
The Inherited IRA beneficiary continuation contract has not been submitted to
the IRS for approval as to form for use as a traditional IRA or Roth IRA.
Equitable intends to submit both traditional and Roth IRA versions of the
contract for formal approval, respectively. However, it is not clear whether
and when such approval may be received.
PROTECTION PLUS(SM) FEATURE
The Protection Plus feature is offered for IRA contracts, subject to state and
contract availability. We have received IRS Opinion Letters that the contract
with a similar Protection Plus feature qualifies 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 contracts submitted for IRS approval
do not include every feature possibly available under the Equitable
Accumulator(R) Select(SM) traditional and Roth IRA contracts. You should discuss
with your tax adviser whether you should consider purchasing an Accumulator(R)
Select(SM) IRA or Accumulator(R) Select(SM) Roth IRA with the optional
Protection Plus feature.
CONTRIBUTIONS
Individuals may make three different types of contributions to an 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 IRAs of the same type
("direct transfers").
In addition, an individual may make a taxable rollover contribution from a
traditional IRA to a Roth IRA ("conversion" contributions).
Contributions to all types of IRAs are compensation-based. They are either made
from your current compensation or have a connection with past compensation (for
example, rollover contributions from an eligible retirement plan that you had
with an employer related to past compensation). Under certain circumstances,
your nonworking spouse, former spouse or surviving spouse may contribute to an
IRA. You can make regular contributions for any year to a traditional IRA
within federal tax law limits up until the calendar year you reach age 70-1/2.
Regular contributions for any year to a Roth IRA can be made at any time during
your life, subject to federal tax law limits.
The amount of contributions you may make to an IRA for any year and whether
such contributions are eligible for special tax treatment (for example,
deductibility from income or a special credit) may vary, depending on your
income, age and whether you participate in an employer-sponsored retirement
plan. Roth IRA contributions are not tax deductible. The maximum regular
contribution that can be made to all of your IRAs (whether traditional or Roth)
for the taxable year for which the contribution is made is $3,000 for 2004 and
$4,000 for 2005. The maximum regular contribution is increased to $3,500 for
2004 and $4,500 for 2005 if you are at least age 50 at any time during the
taxable year for which the contribution is made.
Rollover and transfer contributions are not subject to dollar limits. Rollover
contributions may be made to a traditional IRA from "eligible retirement plans"
which include other traditional IRAs, qualified plans, TSAs and governmental
employer 457(b) plans. For Roth IRAs, rollover contributions may be made from
other Roth IRAs and traditional IRAs. The conversion of a traditional IRA to a
Roth IRA is taxable. Direct transfer contributions may only be made directly
from one traditional IRA to another or from one Roth IRA to another.
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 adviser 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.
A more complete discussion of contributions to traditional IRAs and Roth IRAs
is contained in the SAI.
WITHDRAWALS AND DISTRIBUTIONS
You can withdraw any or all of your funds from an IRA at any time; you do not
need to wait for a special event like retirement. Earnings in IRAs are not
subject to federal income tax until amounts are paid to you or your
beneficiary. Withdrawals from an IRA, surrender of an IRA, death benefits from
an IRA and annuity payments from an IRA may be fully or partially taxable.
Withdrawals and distributions from IRAs are taxable as ordinary income (not
capital gain).
Payments from traditional IRAs and Roth IRAs are taxed differently. Payments
from traditional IRAs are generally fully taxable unless you have made
nondeductible regular contributions or rolled over after-tax contributions. In
any event, the issuer of the traditional IRA is entitled to report the
distribution as fully taxable and it is your responsibility to calculate the
taxable and tax-free portions of any traditional IRA payments on your own tax
returns.
Distributions from Roth IRAs generally receive return of contribution treatment
first under federal income tax calculation rules before any income is taxable.
Certain distributions from Roth IRAs may qualify for fully tax-free treatment.
These are distributions after you reach age 59-1/2, die, become disabled or meet
a qualified first-time home buyer tax rule. You also have to meet a five-year
aging period.
A distribution from a traditional IRA will not be taxable if it is rolled over
to an eligible retirement plan. A distribution from a Roth IRA will not be
taxable if it is rolled over to another Roth IRA.
Taxable withdrawals or distributions from IRAs may be subject to an additional
10% penalty tax if you are under age 59-1/2, unless an exception applies.
Traditional IRAs are subject to required minimum distribution rules which
require that amounts begin to be distributed in a prescribed manner from the
IRA after the owner reaches age 70-1/2. These rules also require distributions
after the owner's death. No distributions are required to be made from Roth
IRAs until after the Roth IRA owner's death, but then the required minimum
distribution rules apply.
52 Tax information
A more complete discussion of the tax aspects of withdrawals and distributions
from traditional IRAs and Roth IRAs is contained in the SAI.
TAX-SHELTERED ANNUITY CONTRACTS (TSAS)
GENERAL
This section of the prospectus covers some of the special tax rules that apply
to annuity contracts under Section 403(b) of the Internal Revenue Code (TSAs).
Generally there are two types of funding vehicles available for 403(b)
arrangements -- an annuity contract under Section 403(b)(1) of the Code or a
custodial account which invests only in mutual funds and which is treated as an
annuity contract under Section 403(b)(7) of which the Code. Both types of
403(b) arrangements qualify for tax deferral.
PROTECTION PLUS FEATURE
The Protection Plus feature is offered for Rollover TSA contracts, subject to
state and contract availability. There is a limit to the amount of life
insurance benefits that TSAs may offer. Although we view the optional
Protection Plus benefit as an investment protection feature which should have
no adverse tax effect and not as a life insurance benefit, the IRS has not
specifically addressed this question. It is possible that the IRS could take a
contrary position regarding tax qualification or assert that the Protection
Plus rider is not a permissible part of a TSA contract. If the IRS were to take
the position that the optional Protection Plus benefit is not part of the
contract, in such a case, the charges for the Protection Plus rider could be
treated for federal income tax purposes as a partial withdrawal from the
contract. If this were so, such a deemed withdrawal could affect the tax
qualification of the TSA and could be taxable. Were the IRS to take any adverse
position, Equitable would take all reasonable steps to attempt to avoid any
adverse result, which would include amending the contract (with appropriate
notice to you). You should discuss with your tax adviser whether you should
consider purchasing an Accumulator(R) Select(SM) Rollover TSA contract with the
optional Protection Plus feature.
CONTRIBUTIONS TO TSAS
There are two ways you can make contributions to this Equitable Accumulator(R)
Select(SM) Rollover TSA contract:
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.
If you make a direct transfer, you must fill out our transfer form.
Contributions to TSAs are discussed in greater detail in the SAI.
ROLLOVER OR DIRECT TRANSFER CONTRIBUTIONS. You must establish your TSA with
funds that are directly transferred from another 403(b) arrangement or rolled
over from another 403(b) arrangement. You may make subsequent rollover
contributions to your Rollover TSA contract from these sources: qualified
plans, governmental employer 457(b) plans and traditional IRAs, as well as
other TSAs and 403(b) arrangements. All rollover contributions must be pre-tax
funds only with appropriate documentation satisfactory to us.
You should discuss with your tax adviser 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.
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 Equitable Accumulator(R) Select(SM) contract receiving the funds has
provisions at least as restrictive as the source contract.
Before you transfer funds to an Equitable Accumulator(R) Select(SM) Rollover TSA
contract, you may have to obtain your employer's authorization or demonstrate
that you do not need employer authorization.
DISTRIBUTIONS FROM 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. Your employer will tell us this when you establish the TSA through
a direct transfer.
You may also need spousal consent for certain transactions and payments.
WITHDRAWAL RESTRICTIONS. If this is a Revenue Ruling 90-24 direct transfer, we
will treat all amounts transferred to this contract and any future earnings on
the amount transferred as not eligible for withdrawal until one of the
following events happens:
o you are severed from employment with the employer which provided the funds to
purchase the TSA you are transferring to the Equitable Accumulator(R)
Select(SM) Rollover TSA; or
o you reach age 59-1/2; or
o you die; or
o you become disabled (special federal income tax definition); or
o you take a hardship withdrawal (special federal income tax definition).
The amount of funds subject to withdrawal restrictions may depend on the source
of the funds used to establish the Accumulator(R) Select(SM) TSA.
TAX TREATMENT OF DISTRIBUTIONS. Amounts held under TSAs are generally not
subject to federal income tax until benefits are distributed. Distributions
include withdrawals from your TSA contract and annuity payments from your TSA
contract. Death benefits paid to a beneficiary are also taxable distributions.
Unless an exception applies, amounts distributed from TSAs are includable in
gross income as ordinary income. Distributions from TSAs may be subject to 20%
federal
Tax information 53
income tax withholding. See "Federal and state income tax withholding and
information reporting" below. In addition, TSA distributions may be subject to
additional tax penalties.
If you have made after-tax contributions, you will have a tax basis in your TSA
contract, which will be recovered tax-free. Since we currently do not accept
after-tax funds, we do not track your investment in the contract, if any. We
will report all distributions from this Rollover TSA as fully taxable. It is
your responsibility to determine how much of the distribution is taxable.
A penalty tax of 10% of the taxable portion of a distribution applies to
distributions from a TSA before you reach age 59-1/2 unless an exception
applies.
Distributions from TSAs are discussed in greater detail in the SAI.
LOANS FROM TSAS
Loans are generally not treated as a taxable distribution. You may take loans
from a TSA unless restricted by the employer (for example, under an employer
plan subject to ERISA). If you cannot take a loan, or cannot take a loan
without approval from the employer who provided the funds, we will have this
information in our records based on what you and the employer who provided the
TSA funds told us when you purchased your contract.
See Appendix VI later in this Prospectus for any state restrictions you may be
subject to if you take a loan from a Rollover TSA contract.
Loans from TSAs are discussed in greater detail in the SAI.
TAX-DEFERRED ROLLOVERS AND DIRECT TRANSFERS
You may roll over any "eligible rollover distribution" from a TSA into another
eligible retirement plan (a qualified plan, a governmental employer 457(b) plan
(separate accounting required), another TSA or a traditional IRA) which agrees
to accept the rollover.
A spousal beneficiary may also roll over death benefits or certain
divorce-related payments.
Direct transfers of TSA funds from one TSA to another under Revenue Ruling
90-24 are not distributions.
Rollovers from TSAs are discussed in greater detail in the SAI.
REQUIRED MINIMUM DISTRIBUTIONS
TSAs are subject to required minimum distribution rules beginning at age 70-1/2
or separation from service, if later. These rules are discussed in greater
detail in the SAI.
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 $17,280 in periodic annuity payments in
2004, 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), we
generally withhold at a flat 10% rate. We apply that rate to the
54 Tax information
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.
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 AND QUALIFIED PLAN DISTRIBUTIONS
Unless you have the distribution go directly to the new plan, eligible rollover
distributions from qualified plans and TSAs are subject to mandatory 20%
withholding. The plan administrator is responsible for withholding from
qualified plan distributions. An eligible rollover distribution from a TSA or a
qualified plan can be rolled over to another eligible retirement plan. All
distributions from a TSA 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 from service with the employer; 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
o substantially equal periodic payments made for a specified period of 10 years
or more; or
o hardship withdrawals; 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.
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 No. 49 for taxes. We
do not now, but may in the future set up reserves for such taxes.
Tax information 55
8. More information
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ABOUT OUR SEPARATE ACCOUNT NO. 49
Each variable investment option is a subaccount of Separate Account No. 49. We
established Separate Account No. 49 in 1996 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 No. 49 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's operations are accounted
for without regard to Equitable Life's other operations.
The Separate Account 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 the Separate Account.
Each subaccount (variable investment option) within Separate Account No. 49
invests solely in class IB 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 the Separate Account 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 the Separate Account 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 the Separate Account
or a variable investment option directly);
(5) to deregister the Separate Account under the Investment Company Act of
1940;
(6) to restrict or eliminate any voting rights as to the Separate Account; 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
The Trusts 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.
The Trusts do not impose sales charges or "loads" for buying and selling its
shares. All dividends and other distributions on Trust shares are reinvested in
full. The Board of Trustees of the Trusts 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 and other aspects of its operations, appears in
the prospectuses for each Trust which accompany 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.
FMO rates are determined daily. The rates in the table below are illustrative
only and will most likely differ from the rates applicable at time of purchase.
Current FMO rates can be obtained from your financial professional.
For example the rates to maturity for new allocations as of February 13, 2004
and the related price per $100 of maturity value were as shown below:
- -----------------------------------------------------------------------
Fixed maturity options
with February 13th Rate to maturity
maturity date of as of Price per $100 of
maturity year February 13, 2004 maturity value
- -----------------------------------------------------------------------
2005 3.00%* $ 97.08
2006 3.00%* $ 94.25
2007 3.00%* $ 91.51
2008 3.00%* $ 88.84
2009 3.00%* $ 86.25
2010 3.00%* $ 83.73
2011 3.00%* $ 81.30
2012 3.30% $ 77.11
2013 3.53% $ 73.16
2014 3.73% $ 69.31
- -----------------------------------------------------------------------
* Since these rates to maturity are 3%, no amounts could have been allocated to
these options.
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.
56 More information
(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 for your FMO based on the
rate for a new FMO issued on the same date and having the same
maturity date as your FMO; if the same maturity date is not available
for new FMOs, we determine a rate that is between the rates for new
FMO maturities that immediately precede and immediately follow
your FMOs maturity date.
(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.
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. 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 option, the "current rate to maturity" will
be determined by using a widely-published Index. We reserve the right to add up
to 0.25% 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 expect the rates to maturity for the fixed maturity options 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 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
WIRE TRANSMITTALS AND ELECTRONIC APPLICATIONS
We accept initial and subsequent contributions sent by wire to our processing
office by agreement with certain broker-dealers. Such transmittals must be
accompanied by information we require to allocate your contribution. Wire
orders not accompanied by complete information may be retained as described
under "How you can make your contributions" under "Contract features and
benefits" earlier in this Prospectus.
Even if we accept the wire order and essential information, a contract
generally will not be issued until we receive and accept a properly completed
application. In certain cases we may issue a contract based on information
provided through certain broker-dealers with which we
More information 57
have established electronic facilities. In any such cases, you must sign our
Acknowledgement of Receipt form.
Where we require a signed application, the above procedures do not apply and no
financial transactions will be permitted until we receive the signed
application and have issued the contract. Where we issue a contract based on
information provided through electronic facilities, we require an
Acknowledgement of Receipt form, and financial transactions are only permitted
if you request them in writing, sign the request and have it signature
guaranteed, until we receive the signed Acknowledgement of Receipt form. After
your contract has been issued, additional contributions may be transmitted by
wire.
In general, the transaction date for electronic transmissions is the date on
which we receive at our regular processing office all required information and
the funds due for your contribution. We may also establish same-day electronic
processing facilities with a broker-dealer that has undertaken to pay
contribution amounts on behalf of its customers. In such cases, the transaction
date for properly processed orders is the business day on which the
broker-dealer inputs all required information into its electronic processing
system. You can contact us to find out more about such arrangements.
After your contract has been issued, additional contributions may be
transmitted by wire.
AUTOMATIC INVESTMENT PROGRAM -- FOR NQ CONTRACTS ONLY
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 contract on a monthly or quarterly basis. AIP is not available for
Rollover IRA, Roth Conversion IRA or Rollover TSA contracts, nor is it
available with GPB Option 2.
The minimum amounts we will deduct are $100 monthly and $300 quarterly. AIP
additional contributions may be allocated to any of the variable investment
options and available fixed maturity options. 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.
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. on a business day, we will use the next business day.
o A loan request under your Rollover TSA contract will be processed on the
first business day of the month following the date on which the properly
completed loan request form is received.
o If your transaction is set to occur on the same day of the month as the
contract date and that date is the 29th, 30th or 31st of the month, then
the transaction will occur on the 1st day of the next month.
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 If we have entered into an agreement with your broker-dealer for automated
processing of contributions upon receipt of customer order, your
contribution will be considered received at the time your broker-dealer
receives your contribution and all information needed to process your
application, along with any required documents, and transmits your order
to us in accordance with our processing procedures. Such arrangements may
apply to initial contributions, subsequent contributions, or both, and may
be commenced or terminated at any time without prior notice. If required
by law, the "closing time" for such orders will be earlier than 4 p.m.,
Eastern Time.
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 the guaranteed interest option will receive the
crediting rate in effect on that business day for the specified time
period.
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
(unless a rate lock-in is applicable).
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 a fixed maturity option will be based on the rate to maturity in
effect for that fixed maturity option on the business day of the transfer.
o Transfers to the guaranteed interest option will receive the crediting rate
in effect on that business day for the specified time period.
o For the interest sweep option, 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.
58 More information
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.
The Trusts sell their shares to Equitable Life separate accounts in connection
with Equitable Life's variable annuity and/or life insurance products, and to
separate accounts of insurance companies, both affiliated and unaffiliated with
Equitable Life. EQ Advisors Trust and AXA Premier VIP Trust also sell their
shares to the trustee of a qualified plan for Equitable Life. We currently do
not foresee any disadvantages to our policyowners arising out of these
arrangements. However, the Board of Trustees or Directors of each Trust intends
to monitor events 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 Board's response insufficiently protects our policyowners, we
will see to it that appropriate action is taken to do so.
SEPARATE ACCOUNT NO. 49 VOTING RIGHTS
If actions relating to the Separate Account 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 No. 49, our ability to meet our obligations under the
contracts, or the distribution of the contracts.
ABOUT OUR INDEPENDENT AUDITORS
The consolidated financial statements of Equitable Life at December 31, 2003
and 2002, and for the three years ended December 31, 2003 incorporated in this
Prospectus by reference to the 2003 Annual Report on Form 10-K are incorporated
in reliance on the report of PricewaterhouseCoopers LLP, independent auditors,
given on the authority of said firm as experts in auditing and accounting.
FINANCIAL STATEMENTS
The financial statements of Separate Account No. 49, 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 1-800-789-7771.
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 Rollover IRA, Roth Conversion IRA or
Rollover TSA contract except by surrender to us. If your individual retirement
annuity contract is held in your custodial individual retirement account, you
may only assign or transfer ownership of such an IRA contract to yourself.
Loans are not available and you cannot assign Rollover IRA, Roth Conversion IRA
or Rollover TSA contracts as security for a loan or other obligation. If the
employer that provided the funds does not restrict them, loans are available
under a Rollover TSA contract.
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 Rollover IRA, Roth
Conversion IRA or Rollover TSA 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
The contracts are distributed by both AXA Advisors, LLC ("AXA Advisors") and
AXA Distributors, LLC ("AXA Distributors"). Both AXA Advisors and AXA
Distributors serve as principal underwriters of Separate Account No. 49. The
offering of the contracts is intended to be continuous.
AXA Advisors (the successor to EQ Financial Consultants, Inc.), an affiliate of
Equitable Life, and AXA Distributors, an indirect wholly owned subsidiary of
Equitable Life, are registered with the SEC as broker dealers and are members
of the National Association of Securities
More information 59
Dealers, Inc. Their principal business address is 1290 Avenue of the Americas,
New York, NY 10104. Both broker dealers also act as distributors for other
Equitable Life annuity products.
AXA Distributors is a successor by merger to all of the functions, rights and
obligations of Equitable Distributors, Inc. ("EDI"). Like AXA Distributors, EDI
was owned by Equitable Holdings, LLC.
The contracts are sold by financial professionals of AXA Advisors and its
affiliates and by financial professionals of AXA Distributors, as well as by
affiliated and unaffiliated broker dealers who have entered into selling
agreements with AXA Distributors.
We pay broker-dealer sales compensation that will generally not exceed 2.0% of
the total contributions made under the contracts. Broker-dealers receiving
sales compensation will generally pay a portion of it to their financial
representatives as commissions related to the sales of the contracts. AXA
Distributors may also receive compensation and reimbursement for its marketing
services under the terms of its distribution agreement with Equitable Life, as
well as payments from portfolio advisers for sales meetings and/or seminar
sponsorships.
Equitable and/or AXA Distributors and/or AXA Advisors may use their respective
past profits or other resources to pay brokers and other financial
intermediaries for certain expenses they incur in providing services intended
to promote the sales of our products and/or shares in the underlying Trusts.
These services may include sales personnel training, prospectus review,
marketing and related services as well as support services that benefit
contract owners.
Similarly, in an effort to promote the sale of our products, AXA Advisors may
provide its financial professionals and managerial personnel with a higher
percentage of sales commissions and/or more compensation for the sale of an
Equitable variable product than it would for the sale of another product. Such
practice is known as providing differential compensation. Other forms of
compensation financial professionals may receive include health and retirement
benefits, credits towards stock options awards and rewards for sales incentive
campaigns. In addition, managerial personnel may receive expense
reimbursements, marketing allowances and so called "overrides." In part for tax
reasons, AXA Advisors financial professionals and managerial personnel qualify
for health and retirement benefits based on their sales of our variable
products.
These payments and differential compensation (together, "payments") can vary in
amount based on the applicable product and/or entity or individual involved. As
with any incentive, such payments may cause the recipient to show preference in
recommending the purchase or sale of our products. However, under applicable
rules of the National Association of Securities Dealers, Inc., AXA Advisors
financial professionals may only recommend to you products that they reasonably
believe are suitable for you based on facts that you have disclosed as to your
other security holdings, financial situation and needs. In making any
recommendation, financial professionals may nonetheless face conflicts of
interest because of the differences in compensation from one product category
to another, and because of differences in compensation between products in the
same category. Although Equitable takes all of its costs into account in
establishing the level of fees and expenses in our products, payments made will
not result in any separate charge to you under your contract.
60 More information
9. Incorporation of certain documents by reference
- --------------------------------------------------------------------------------
Equitable Life's annual report on Form 10-K for the year ended December 31,
2003, is considered to be a part of this Prospectus because they are
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 are for contracts
offered under Separate Account 49 with the same daily asset charges of 1.70%.
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, 2003
- --------------------------------------------------------------------------------
For the years
ending December 31,
-----------------------------
2003 2002
- --------------------------------------------------------------------------------
AXA Aggressive Allocation
- --------------------------------------------------------------------------------
Unit value $ 10.66 --
- --------------------------------------------------------------------------------
Number of units outstanding (000's) 32 --
- --------------------------------------------------------------------------------
AXA Conservative Allocation
- --------------------------------------------------------------------------------
Unit value $ 10.30 --
- --------------------------------------------------------------------------------
Number of units outstanding (000's) 1 --
- --------------------------------------------------------------------------------
AXA Conservative-Plus Allocation
- --------------------------------------------------------------------------------
Unit value $ 10.41 --
- --------------------------------------------------------------------------------
Number of units outstanding (000's) 84 --
- --------------------------------------------------------------------------------
AXA Moderate Allocation
- --------------------------------------------------------------------------------
Unit value $ 38.70 $ 33.05
- --------------------------------------------------------------------------------
Number of units outstanding (000's) 383 86
- --------------------------------------------------------------------------------
AXA Moderate-Plus Allocation
- --------------------------------------------------------------------------------
Unit value $ 10.66 --
- --------------------------------------------------------------------------------
Number of units outstanding (000's) 46 --
- --------------------------------------------------------------------------------
AXA Premier VIP Aggressive Equity
- --------------------------------------------------------------------------------
Unit value $ 45.72 $ 33.82
- --------------------------------------------------------------------------------
Number of units outstanding (000's) 10 4
- --------------------------------------------------------------------------------
AXA Premier VIP Core Bond
- --------------------------------------------------------------------------------
Unit value $ 10.84 $ 10.63
- --------------------------------------------------------------------------------
Number of units outstanding (000's) 1,202 628
- --------------------------------------------------------------------------------
AXA Premier VIP Health Care
- --------------------------------------------------------------------------------
Unit value $ 9.91 $ 7.87
- --------------------------------------------------------------------------------
Number of units outstanding (000's) 143 57
- --------------------------------------------------------------------------------
AXA Premier VIP High Yield
- --------------------------------------------------------------------------------
Unit value $ 25.87 $ 21.48
- --------------------------------------------------------------------------------
Number of units outstanding (000's) 557 125
- --------------------------------------------------------------------------------
AXA Premier VIP International Equity
- --------------------------------------------------------------------------------
Unit value $ 10.27 $ 7.78
- --------------------------------------------------------------------------------
Number of units outstanding (000's) 360 135
- --------------------------------------------------------------------------------
AXA Premier VIP Large Cap Core Equity
- --------------------------------------------------------------------------------
Unit value $ 9.59 $ 7.61
- --------------------------------------------------------------------------------
Number of units outstanding (000's) 238 104
- --------------------------------------------------------------------------------
AXA Premier VIP Large Cap Growth
- --------------------------------------------------------------------------------
Unit value $ 8.68 $ 6.76
- --------------------------------------------------------------------------------
Number of units outstanding (000's) 792 408
- --------------------------------------------------------------------------------
AXA Premier VIP Large Cap Value
- --------------------------------------------------------------------------------
Unit value $ 10.15 $ 7.88
- --------------------------------------------------------------------------------
Number of units outstanding (000's) 726 316
- --------------------------------------------------------------------------------
A-1 Appendix I: Condensed financial information
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, 2003 (CONTINUED)
- --------------------------------------------------------------------------------
For the years
ending December 31,
-----------------------------
2003 2002
- --------------------------------------------------------------------------------
AXA Premier VIP Small/Mid Cap Growth
- --------------------------------------------------------------------------------
Unit value $ 8.52 $ 6.18
- --------------------------------------------------------------------------------
Number of units outstanding (000's) 731 292
- --------------------------------------------------------------------------------
AXA Premier VIP Small/Mid Cap Value
- --------------------------------------------------------------------------------
Unit value $ 10.15 $ 7.34
- --------------------------------------------------------------------------------
Number of units outstanding (000's) 560 206
- --------------------------------------------------------------------------------
AXA Premier VIP Technology
- --------------------------------------------------------------------------------
Unit value $ 8.74 $ 5.64
- --------------------------------------------------------------------------------
Number of units outstanding (000's) 98 14
- --------------------------------------------------------------------------------
EQ/Alliance Common Stock
- --------------------------------------------------------------------------------
Unit value $191.26 $ 130.09
- --------------------------------------------------------------------------------
Number of units outstanding (000's) 29 9
- --------------------------------------------------------------------------------
EQ/Alliance Growth and Income
- --------------------------------------------------------------------------------
Unit value $ 24.60 $ 19.19
- --------------------------------------------------------------------------------
Number of units outstanding (000's) 371 133
- --------------------------------------------------------------------------------
EQ/Alliance Intermediate Government Securities
- --------------------------------------------------------------------------------
Unit value $ 17.72 $ 17.65
- --------------------------------------------------------------------------------
Number of units outstanding (000's) 458 259
- --------------------------------------------------------------------------------
EQ/Alliance International
- --------------------------------------------------------------------------------
Unit value $ 11.05 $ 8.32
- --------------------------------------------------------------------------------
Number of units outstanding (000's) 530 142
- --------------------------------------------------------------------------------
EQ/Alliance Premier Growth
- --------------------------------------------------------------------------------
Unit value $ 5.78 $ 4.77
- --------------------------------------------------------------------------------
Number of units outstanding (000's) 856 341
- --------------------------------------------------------------------------------
EQ/Alliance Quality Bond
- --------------------------------------------------------------------------------
Unit value $ 14.97 $ 14.71
- --------------------------------------------------------------------------------
Number of units outstanding (000's) 512 198
- --------------------------------------------------------------------------------
EQ/Alliance Small Cap Growth
- --------------------------------------------------------------------------------
Unit value $ 13.34 $ 9.63
- --------------------------------------------------------------------------------
Number of units outstanding (000's) 478 121
- --------------------------------------------------------------------------------
EQ/Bernstein Diversified Value
- --------------------------------------------------------------------------------
Unit value $ 12.60 $ 9.96
- --------------------------------------------------------------------------------
Number of units outstanding (000's) 1,481 530
- --------------------------------------------------------------------------------
EQ/Calvert Socially Responsible
- --------------------------------------------------------------------------------
Unit value $ 7.82 $ 6.22
- --------------------------------------------------------------------------------
Number of units outstanding (000's) 249 42
- --------------------------------------------------------------------------------
EQ/Capital Guardian International
- --------------------------------------------------------------------------------
Unit value $ 9.38 $ 7.19
- --------------------------------------------------------------------------------
Number of units outstanding (000's) 1,026 282
- --------------------------------------------------------------------------------
EQ/Capital Guardian Research
- --------------------------------------------------------------------------------
Unit value $ 10.16 $ 7.86
- --------------------------------------------------------------------------------
Number of units outstanding (000's) 776 200
- --------------------------------------------------------------------------------
Appendix I: Condensed financial information A-2
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, 2003 (CONTINUED)
- --------------------------------------------------------------------------------
For the years
ending December 31,
------------------------------
2003 2002
- --------------------------------------------------------------------------------
EQ/Capital Guardian U. S. Equity
- --------------------------------------------------------------------------------
Unit value $ 10.12 $ 7.55
- --------------------------------------------------------------------------------
Number of units outstanding (000's) 1,222 345
- --------------------------------------------------------------------------------
EQ/Emerging Markets Equity
- --------------------------------------------------------------------------------
Unit value $ 8.53 $ 5.56
- --------------------------------------------------------------------------------
Number of units outstanding (000's) 457 69
- --------------------------------------------------------------------------------
EQ/Equity 500 Index
- --------------------------------------------------------------------------------
Unit value $ 22.76 $ 18.11
- --------------------------------------------------------------------------------
Number of units outstanding (000's) 1,074 399
- --------------------------------------------------------------------------------
EQ/Evergreen Omega
- --------------------------------------------------------------------------------
Unit value 7.75 $ 5.70
- --------------------------------------------------------------------------------
Number of units outstanding (000's) 218 32
- --------------------------------------------------------------------------------
EQ/FI Mid Cap
- --------------------------------------------------------------------------------
Unit value $ 9.62 $ 6.81
- --------------------------------------------------------------------------------
Number of units outstanding (000's) 883 285
- --------------------------------------------------------------------------------
EQ/FI Small/Mid Cap Value
- --------------------------------------------------------------------------------
Unit value $ 12.10 $ 9.24
- --------------------------------------------------------------------------------
Number of units outstanding (000's) 636 237
- --------------------------------------------------------------------------------
EQ/J.P. Morgan Core Bond
- --------------------------------------------------------------------------------
Unit value $ 13.20 $ 12.99
- --------------------------------------------------------------------------------
Number of units outstanding (000's) 1,175 441
- --------------------------------------------------------------------------------
EQ/Janus Large Cap Growth
- --------------------------------------------------------------------------------
Unit value $ 5.38 $ 4.35
- --------------------------------------------------------------------------------
Number of units outstanding (000's) 561 192
- --------------------------------------------------------------------------------
EQ/Lazard Small Cap Value
- --------------------------------------------------------------------------------
Unit value $ 14.09 $ 10.43
- --------------------------------------------------------------------------------
Number of units outstanding (000's) 641 270
- --------------------------------------------------------------------------------
EQ/Marsico Focus
- --------------------------------------------------------------------------------
Unit value $ 12.69 $ 9.85
- --------------------------------------------------------------------------------
Number of units outstanding (000's) 1,510 386
- --------------------------------------------------------------------------------
EQ/Mercury Basic Value Equity
- --------------------------------------------------------------------------------
Unit value $ 17.87 $ 13.86
- --------------------------------------------------------------------------------
Number of units outstanding (000's) 502 184
- --------------------------------------------------------------------------------
EQ/Mercury International Value
- --------------------------------------------------------------------------------
Unit value $ 13.75 $ 10.92
- --------------------------------------------------------------------------------
Number of units outstanding (000's) 441 161
- --------------------------------------------------------------------------------
EQ/MFS Emerging Growth Companies
- --------------------------------------------------------------------------------
Unit value $ 11.60 $ 9.12
- --------------------------------------------------------------------------------
Number of units outstanding (000's) 93 38
- --------------------------------------------------------------------------------
EQ/MFS Investors Trust
- --------------------------------------------------------------------------------
Unit value $ 8.03 $ 6.69
- --------------------------------------------------------------------------------
Number of units outstanding (000's) 598 229
- --------------------------------------------------------------------------------
EQ/Money Market
- --------------------------------------------------------------------------------
Unit value $ 26.17 $ 26.47
- --------------------------------------------------------------------------------
Number of units outstanding (000's) 434 630
- --------------------------------------------------------------------------------
A-3 Appendix I: Condensed financial information
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, 2003
- --------------------------------------------------------------------------------
For the years
ending December 31,
-----------------------------
2003 2002
- --------------------------------------------------------------------------------
EQ/Putnam Growth & Income Value
- --------------------------------------------------------------------------------
Unit value $ 11.78 $ 9.45
- --------------------------------------------------------------------------------
Number of units outstanding (000's) 307 128
- --------------------------------------------------------------------------------
EQ/Putnam Voyager
- --------------------------------------------------------------------------------
Unit value $ 11.20 $ 9.19
- --------------------------------------------------------------------------------
Number of units outstanding (000's) 164 40
- --------------------------------------------------------------------------------
EQ/Small Company Index
- --------------------------------------------------------------------------------
Unit value $ 12.10 $ 8.44
- --------------------------------------------------------------------------------
Number of units outstanding (000's) 449 122
- --------------------------------------------------------------------------------
EQ/Technology
- --------------------------------------------------------------------------------
Unit value $ 4.02 $ 2.85
- --------------------------------------------------------------------------------
Number of units outstanding (000's) 258 77
- --------------------------------------------------------------------------------
Laudus Rosenberg VIT Value Long/Short Equity
- --------------------------------------------------------------------------------
Unit value $ 10.16 --
- --------------------------------------------------------------------------------
Number of units outstanding (000's) 1 --
- --------------------------------------------------------------------------------
U.S. Real Estate
- --------------------------------------------------------------------------------
Unit value $ 10.99 --
- --------------------------------------------------------------------------------
Number of units outstanding (000's) 1 --
- --------------------------------------------------------------------------------
Appendix I: Condensed financial information A-4
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 was allocated
on February 13, 2004 to a fixed maturity option with a maturity date of
February 13, 2013 (nine years later) at a hypothetical rate to maturity of
7.00%, resulting in a maturity value of $183,914 on the maturity date. We
further assume that a withdrawal of $50,000 is made four years later on
February 13, 2009.
- -----------------------------------------------------------------------------------------------------------------------
Hypothetical assumed rate to maturity on February 13, 2009
------------------------------------------------------------
5.00% 9.00%
- -----------------------------------------------------------------------------------------------------------------------
As of February 13, 2009 (before withdrawal)
- -----------------------------------------------------------------------------------------------------------------------
(1) Market adjusted amount $144,082 $ 119,503
- -----------------------------------------------------------------------------------------------------------------------
(2) Fixed maturity amount $131,104 $ 131,104
- -----------------------------------------------------------------------------------------------------------------------
(3) Market value adjustment:
(1) - (2) $ 12,978 $ (11,601)
- -----------------------------------------------------------------------------------------------------------------------
On February 13, 2009 (after withdrawal)
- -----------------------------------------------------------------------------------------------------------------------
(4) Portion of market value adjustment associated with withdrawal:
(3) x [$50,000/(1)] $ 4,504 $ (4,854)
- -----------------------------------------------------------------------------------------------------------------------
(5) Reduction in fixed maturity amount: [$50,000 - (4)] $ 45,496 $ 54,854
- -----------------------------------------------------------------------------------------------------------------------
(6) Fixed maturity amount: (2) - (5) $ 85,608 $ 76,250
- -----------------------------------------------------------------------------------------------------------------------
(7) Maturity value $120,091 $ 106,965
- -----------------------------------------------------------------------------------------------------------------------
(8) Market adjusted amount of (7) $ 94,082 $ 69,503
- -----------------------------------------------------------------------------------------------------------------------
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 portion of 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 portion of a positive
market value adjustment is realized. The market value is computed differently
if you withdraw amounts on a date other than the anniversary of the
establishment of the fixed maturity option.
B-1 Appendix II: Market value adjustment example
Appendix III: Enhanced death benefit example
- --------------------------------------------------------------------------------
The death benefit under the contracts is equal to the account value or, if
greater, the enhanced death benefit if elected.
The following illustrates the enhanced death benefit calculation. Assuming
$100,000 is allocated to the variable investment options (with no allocation to
the EQ/Alliance Intermediate Government Securities, EQ/Money Market, the
guaranteed interest option, the fixed maturity options or the Special 10 year
fixed maturity option), no additional contributions, no transfers, no
withdrawals and no loans under a Rollover TSA contract, the enhanced death
benefit for an annuitant age 45 would be calculated as follows:
- ---------------------------------------------------------------------------------------
End of
contract 6% Roll up to age 85 Annual Ratchet to age 85
year Account value enhanced death benefit enhanced death benefit
- ---------------------------------------------------------------------------------------
1 105,000 106,000 105,000
- ---------------------------------------------------------------------------------------
2 115,500 112,360 115,500
- ---------------------------------------------------------------------------------------
3 129,360 119,102 129,360
- ---------------------------------------------------------------------------------------
4 103,488 126,248 129,360
- ---------------------------------------------------------------------------------------
5 113,837 133,823 129,360
- ---------------------------------------------------------------------------------------
6 127,497 141,852 129,360
- ---------------------------------------------------------------------------------------
7 127,497 150,363 129,360
- ---------------------------------------------------------------------------------------
The account values for contract years 1 through 7 are based on hypothetical
rates of return of 5.00%, 10.00%, 12.00%, (20.00)%, 10.00%, 12.00% and 0.00%.
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.
ANNUAL RATCHET TO AGE 85
(1) At the end of contract years 1 through 3, the enhanced death benefit is the
current account value.
(2) At the end of contract years 4 through 7, the enhanced death benefit is the
enhanced death benefit at the end of the prior year since it is equal to or
higher than the current account value.
GREATER OF 6% ROLL UP TO AGE 85 OR THE ANNUAL RATCHET TO AGE 85
The enhanced death benefit under this option for each year shown would be the
greater of the amounts shown under the 6% Roll up to age 85 or the Annual
Ratchet to age 85.*
* At the end of contract years 4 through 7, the death benefit will be the
enhanced death benefit. At the end of contract years 1, 2 and 3, the death
benefit will be the current account value.
Appendix III: Enhanced death benefit example C-1
Appendix IV: Hypothetical illustrations
- --------------------------------------------------------------------------------
ILLUSTRATION OF ACCOUNT VALUES, CASH VALUES AND CERTAIN GUARANTEED MINIMUM
BENEFITS
The following tables illustrate the changes in account value, cash value and
the values of the "greater of 6% Roll up to Age 85 or the Annual Ratchet to age
85" guaranteed minimum death benefit, the Protection Plus benefit and the
Guaranteed minimum income benefit under certain hypothetical circumstances for
an Accumulator(R) Select(SM) contract. The table illustrates the operation of a
contract based on a male, issue age 60, who makes a single $100,000
contribution and takes no withdrawals. The amounts shown are for the beginning
of each contract year and assume that all of the account value is invested in
portfolios that achieve investment returns at constant gross annual rates of 0%
and 6% (i.e., before any investment management fees, 12b-1 fees or other
expenses are deducted from the underlying portfolio assets). After the
deduction of the arithmetic average of the investment management fees, 12b-1
fees and other expenses of all of the underlying Portfolios (as described
below), the corresponding net annual rates of return would be (3.38)%, 2.62%
for the Accumulator(R) Select(SM) contract, at the 0% and 6% gross annual rates,
respectively. These net annual rates of return reflect the trust and separate
account level charges but they do not reflect the charges we deduct from your
account value annually for the optional Guaranteed minimum death benefit,
Protection Plus benefit and the Guaranteed minimum income benefit features, as
well as the annual administrative charge. If the net annual rates of return did
reflect these charges, the net annual rates of return would be lower; however,
the values shown in the following tables reflect all contract charges. The
values shown under "Lifetime annual guaranteed minimum income benefit" reflect
the lifetime income that would be guaranteed if the Guaranteed minimum income
benefit is selected at that contract anniversary. An "N/A" in these columns
indicates that the benefit is not exercisable in that year. A "0" under any of
the death benefit and/or "Lifetime annual guaranteed minimum income benefit"
columns indicates that the contract has terminated due to insufficient account
value and, consequently, the guaranteed benefit has no value.
With respect to fees and expenses deducted from assets of the underlying
portfolios, the amounts shown in all tables reflect (1) investment management
fees equivalent to an effective annual rate of 0.68%, and (2) an assumed
average asset charge for all other expenses of the underlying portfolios
equivalent to an effective annual rate of 0.85% and (3) 12b-1 fees equivalent
to an effective annual rate of 0.25%. These rates are the arithmetic average
for all portfolios that are available as investment options. In other words,
they are based on the hypothetical assumption that account values are allocated
equally among the variable investment options. The actual rates associated with
any contract will vary depending upon the actual allocation of policy values
among the investment options. These rates do not reflect expense limitation
arrangements in effect with respect to certain of the underlying portfolios as
described in the footnotes to the fee table for the underlying portfolios in
"Fee Table" earlier in this prospectus. With these arrangements, the charges
shown above would be lower. This would result in higher values than those shown
in the following tables.
Because your circumstances will no doubt differ from those in the illustrations
that follow, values under your contract will differ, in most cases
substantially. Upon request, we will furnish you with a personalized
illustration.
D-1 Appendix IV: Hypothetical illustrations
Variable deferred annuity
Accumulator(R) Select(SM)
$100,000 Single contribution and no withdrawals
Male, issue age 60
Benefits:
Greater of 6% Roll up to age 85 or the Annual Ratchet to age 85 Guaranteed
minimum death benefit
Protection Plus
Guaranteed minimum income benefit
- --------------------------------------------------------------------------------
Greater of 6% Roll
up
to age 85 or the
Annual Ratchet
to age 85
Guaranteed
Minimum Death
Account Value Cash Value Benefit
------------------- ------------------- -------------------
Age Contract Year 0% 6% 0% 6% 0% 6%
- ----- -------------- --------- --------- --------- --------- --------- ---------
60 1 100,000 100,000 100,000 100,000 100,000 100,000
61 2 94,857 100,836 94,857 100,836 106,000 106,000
62 3 89,831 101,611 89,831 101,611 112,360 112,360
63 4 84,913 102,318 84,913 102,318 119,102 119,102
64 5 80,093 102,951 80,093 102,951 126,248 126,248
65 6 75,362 103,504 75,362 103,504 133,823 133,823
66 7 70,712 103,967 70,712 103,967 141,852 141,852
67 8 66,133 104,335 66,133 104,335 150,363 150,363
68 9 61,616 104,597 61,616 104,597 159,385 159,385
69 10 57,151 104,746 57,151 104,746 168,948 168,948
74 15 35,212 103,421 35,212 103,421 226,090 226,090
79 20 13,129 97,501 13,129 97,501 302,560 302,560
84 25 0 84,964 0 84,964 0 404,893
89 30 0 78,068 0 78,068 0 429,187
94 35 0 73,432 0 73,432 0 429,187
95 36 0 72,444 0 72,444 0 429,187
Lifetime Annual
Guaranteed Minimum Income Benefit
------------------------------------
Total Death Benefit
with Protection Guaranteed Hypothetical
Plus Income Income
------------------- ------------------ -----------------
Age 0% 6% 0% 6% 0% 6%
- ----- --------- --------- --------- -------- --------- -------
60 100,000 100,000 N/A N/A N/A N/A
61 108,400 108,400 N/A N/A N/A N/A
62 117,304 117,304 N/A N/A N/A N/A
63 126,742 126,742 N/A N/A N/A N/A
64 136,747 136,747 N/A N/A N/A N/A
65 147,352 147,352 N/A N/A N/A N/A
66 158,593 158,593 N/A N/A N/A N/A
67 170,508 170,508 N/A N/A N/A N/A
68 183,139 183,139 N/A N/A N/A N/A
69 196,527 196,527 N/A N/A N/A N/A
74 276,527 276,527 14,266 14,266 14,266 14,266
79 383,584 383,584 20,393 20,393 20,393 20,393
84 0 493,179 0 34,821 0 34,821
89 0 517,472 N/A N/A N/A N/A
94 0 517,472 N/A N/A N/A N/A
95 0 517,472 N/A N/A N/A N/A
The hypothetical investment results are illustrative only and should not be
deemed a representation of past or future investment results. Actual investment
results may be more or less than those shown and will depend on a number of
factors, including investment allocations made by the owner. The account value,
cash value and guaranteed benefits for a contract would be different from the
ones shown if the actual gross rate of investment return averaged 0% or 6% over
a period of years, but also fluctuated above or below the average for
individual contract years. We can make no representation that these
hypothetical investment results can be achieved for any one year or continued
over any period of time. In fact, for any given period of time, the investment
results could be negative.
Appendix IV: Hypothetical illustrations D-2
Appendix V: Guaranteed principal benefit example
- --------------------------------------------------------------------------------
For purposes of these examples, we assume that there is an initial contribution
of $100,000, made to the contract on February 13, 2004. We also assume that no
additional contributions, no transfers among options and no withdrawals from
the contract are made. For GPB Option 1, the example also assumes that a 10
year fixed maturity option is chosen. The hypothetical gross rates of return
with respect to amounts allocated to the variable investment options are 0%, 6%
and 10%. The numbers below reflect the deduction of all applicable separate
account and contract charges and also reflect the charge for GPB Option 2.
Also, for any given performance of your variable investment options, GPB Option
1 produces higher account values than GPB Option 2 unless investment
performance has been significantly positive. The examples should not be
considered a representation of past or future expenses. Similarly, the annual
rates of return assumed in the example are not an estimate or guarantee of
future investment performance.
- --------------------------------------------------------------------------------------------------------------
Assuming 100%
Assuming in the variable
100% in the Under GPB Under GPB investment
FMO Option 1 Option 2 options
- --------------------------------------------------------------------------------------------------------------
Amount allocated to FMO on February 13, 2004 100,000 69,310 35,000 0
based upon a 3.73% rate to maturity
- --------------------------------------------------------------------------------------------------------------
Initial account value allocated to the variable 0 30,690 65,000 100,000
investment options on February 13, 2004
- --------------------------------------------------------------------------------------------------------------
Account value in the fixed maturity option on 144,269 100,000 50,494 0
February 13, 2014
- --------------------------------------------------------------------------------------------------------------
Annuity account value (computed by adding 144,269 121,536 100,000* 70,173
together the value at the maturity date of the
applicable fixed maturity option plus the value of
amounts in the variable investment options on
February 13, 2014, assuming a 0% gross rate of
return)
- --------------------------------------------------------------------------------------------------------------
Annuity account value (computed by adding 144,269 139,363 127,443** 128,258
together the value at the maturity date of the
applicable fixed maturity option plus the value of
amounts in the variable investment options on
February 13, 2014, assuming a 6% gross rate of
return)
- --------------------------------------------------------------------------------------------------------------
Annuity account value (computed by adding 144,269 157,718 163,975** 188,067
together the value at the maturity date of the
applicable fixed maturity option plus the value of
amounts in the variable investment options on
February 13, 2014, assuming a 10% gross rate of
return)
- --------------------------------------------------------------------------------------------------------------
* Since the annuity account value is less than the alternate benefit under GPB
Option 2, the annuity account value is adjusted upward to the guaranteed
amount or an increase of $7,951 in this example.
** Since the annuity account value is greater than the alternate benefit under
GPB Option 2, GPB Option 2 will not affect the annuity account value.
E-1 Appendix V: Guaranteed principal benefit example
Appendix VI -- State contract availability and/or variations of certain
features and benefits
- --------------------------------------------------------------------------------
The following information is a summary of the states where the Equitable
Accumulator(R) Select(SM) contract or certain features and/or benefits are
either NOT available as of the date of this Prospectus OR have certain
variations to the contract's features and benefits as previously described in
this Prospectus.
STATES WHERE CERTAIN ACCUMULATOR(R) SELECT(SM) FEATURES AND/OR BENEFITS ARE NOT
AVAILABLE OR HAS CERTAIN VARIATIONS TO FEATURES AND/OR BENEFITS:
- -------------------------------------------------------------------------------------------------------
State Features and Benefits Availability or Variation
- -------------------------------------------------------------------------------------------------------
MARYLAND Fixed maturity options Not Available
Guaranteed principal benefit option 1 and Guaranteed Not Available
principal benefit option 2
- -------------------------------------------------------------------------------------------------------
NEW YORK Greater of the 6% roll up or Annual Ratchet Guaran- Not Available (you have a choice
teed minimum death benefit of the standard death benefit
or the Annual Ratchet to age 85
guaranteed minimum death
benefit), as described earlier in
this Prospectus.
Protection Plus Not Available
Variable Immediate Annuity payout options -- Life Not Available
annuity contracts
See "Termination of your contract" in "Determining If your account value in the
your contract's value" variable investment options and
the fixed maturity options is
insufficient to pay the annual
administrative, guaranteed minimum
death benefit and/or the
guaranteed minimum income benefit
charges, and you have no
account value in the guaranteed
interest option, your contract
will terminate without value, and
you will lose any applicable
benefits. See "Charges and
expenses" earlier in this
Prospectus.
See "The amount applied to purchase an annuity The amount applied to purchase an
payout option" in "Accessing your money" annuity payout option varies,
depending on the payout option
that you choose, and the timing
of your purchase as it relates to
any market value adjustments. In
New York, the income provided,
however, will never be less than
what would be provided by applying
the account value to the
guaranteed annuity purchase
factors.
See "Charges and expenses" With regard to the Annual
administrative, Guaranteed minimum
death benefit, Guaranteed
principal benefit option 2 and
Guaranteed minimum income benefit
charges, respectively, we will
deduct the related charge, as
follows for each: we will deduct
the charge from your value in the
variable investment options on a
pro rata basis. If these amounts
are insufficient, we will deduct
all or a portion of the charge
from the fixed maturity options
(other than the Special 10 year
fixed maturity option) in the
order of the earliest maturity
date(s) first. If such amounts are
still insufficient, we will deduct
any remaining portion from the
Special 10 year fixed maturity
option. If the contract is surren-
dered or annuitized or a death
benefit is paid, we will deduct a
pro rata portion of the charge for
that year. A market value
adjustment will apply to
deductions from the fixed maturity
options (including the Special 10
year fixed maturity option).
In New York, deductions from the
fixed maturity options (includ-
ing the Special 10 year fixed
maturity option) cannot cause the
credited net interest for the
contract year to fall below 1.5%.
- -------------------------------------------------------------------------------------------------------
Appendix VI -- State contract availability and/or variations
of certain features and benefits F-1
- -------------------------------------------------------------------------------------------------------
State Features and Benefits Availability or Variation
- -------------------------------------------------------------------------------------------------------
NEW YORK, With regard to the Annual
Continued administrative, Guaranteed minimum
death benefit and Guaranteed minimum
income benefit charges only, if your
account value in the variable
investment options and the fixed
maturity options is insufficient to
pay this charge, and you have no
account value in the guaranteed
interest option, your contract will
terminate without value and you will
lose any applicable guaranteed
benefits. Please see "Termination of
your contract" in "Determining your
contract's value" earlier in
this Prospectus.
See "Annuity maturity date" in "Accessing your The maturity date by which you must
money" take a lump sum withdrawal or select
an annuity payout option is as follows:
Maximum
Issue age Annuitization age
--------- -----------------
0-80 90
81 91
82 92
83 93
84 94
85 95
Please see this section earlier
in this Prospectus for more
information.
- -------------------------------------------------------------------------------------------------------
PENNSYLVANIA Contribution age limitations If the annuitant was 0-75 at
contract issue, the maximum
contribution age is 85.
See "Annuity maturity date" in "Accessing your The maturity date by which you
money" must take a lump sum with-
drawal or select an annuity
payout option is as follows:
Maximum
Issue age annuitization age
--------- -----------------
0-75 85
76 86
77 87
78-80 88
81-85 90
- -------------------------------------------------------------------------------------------------------
PUERTO RICO IRA, Roth IRA, Inherited IRA and Rollover TSA Not Available
contracts
Beneficiary continuation option (IRA) Not Available
- -------------------------------------------------------------------------------------------------------
VERMONT Loans under Rollover TSA contracts Taking a loan in excess of the
Internal Revenue Code limits may
result in adverse tax
consequences. Please consult
your tax adviser before taking a
loan that exceeds the Internal
Revenue Code limits.
- -------------------------------------------------------------------------------------------------------
F-2 Appendix VI -- State contract availability and/or variations of certain
features and benefits
Statement of additional information
- --------------------------------------------------------------------------------
TABLE OF CONTENTS
Page
Tax Information 2
Unit Values 15
Equitable Life's Pending Name Change 15
Custodian and Independent Auditors 15
Distribution of the Contracts 15
Financial Statements 16
How to obtain an Equitable Accumulator(R) Select(SM) Statement of Additional
Information for Separate Account No. 49
Send this request form to:
Equitable Accumulator(R) Select(SM)
P.O. Box 1547
Secaucus, NJ 07096-1547
- --------------------------------------------------------------------------------
Please send me an Equitable Accumulator(R) Select(SM) SAI for Separate Account
No. 49 dated May 1, 2004.
- --------------------------------------------------------------------------------
Name:
- --------------------------------------------------------------------------------
Address:
- --------------------------------------------------------------------------------
City State Zip
(SAI 4ACS(5/03))
X00680/Select '04 Series
Equitable Accumulator(R) Elite(SM)
A combination variable and fixed deferred
annuity contract
PROSPECTUS MAY 1, 2004
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. You should read the prospectuses for each
Trust, which contain important information about the portfolios.
- --------------------------------------------------------------------------------
WHAT IS THE EQUITABLE ACCUMULATOR(R) ELITE(SM)?
Equitable Accumulator(R) Elite(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 offers income
and death benefit protection. It also offers a number of payout options. You
invest to accumulate value on a tax-deferred basis in one or more of our
variable investment options, the guaranteed interest option, fixed maturity
options or the account for special dollar cost averaging ("investment
options"). This contract may not currently be available in all states. Certain
features and benefits described in this Prospectus may vary in your state; all
features and benefits may not be available in all contracts or all states.
Please see Appendix VII later in this Prospectus for more information on state
availability and/or variations of certain features and benefits.
- --------------------------------------------------------------------------------
Variable investment options
- --------------------------------------------------------------------------------
o AXA Aggressive Allocation(1) o EQ/Bernstein Diversified Value
o AXA Conservative Allocation(1) o EQ/Calvert Socially Responsible
o AXA Conservative-Plus Allocation(1) o EQ/Capital Guardian International
o AXA Moderate Allocation(1) o EQ/Capital Guardian Research
o AXA Moderate-Plus Allocation(1) o EQ/Capital Guardian U.S. Equity
o AXA Premier VIP Aggressive Equity o EQ/Emerging Markets Equity
o AXA Premier VIP Core Bond o EQ/Equity 500 Index
o AXA Premier VIP Health Care o EQ/Evergreen Omega
o AXA Premier VIP High Yield o EQ/FI Mid Cap
o AXA Premier VIP International Equity o EQ/FI Small/Mid Cap Value
o AXA Premier VIP Large Cap Core o EQ/J.P. Morgan Core Bond
Equity o EQ/Janus Large Cap Growth
o AXA Premier VIP Large Cap Growth o EQ/Lazard Small Cap Value
o AXA Premier VIP Large Cap Value o EQ/Marsico Focus
o AXA Premier VIP Small/Mid Cap o EQ/Mercury Basic Value Equity
Growth o EQ/Mercury International Value
o AXA Premier VIP Small/Mid Cap Value o EQ/MFS Emerging Growth Companies
o AXA Premier VIP Technology o EQ/MFS Investors Trust
o EQ/Alliance Common Stock o EQ/Money Market
o EQ/Alliance Growth and Income o EQ/Putnam Growth & Income Value
o EQ/Alliance Intermediate Government o EQ/Putnam Voyager
Securities o EQ/Small Company Index
o EQ/Alliance International o EQ/Technology(2)
o EQ/Alliance Premier Growth o Laudus Rosenberg VIT Value Long/
o EQ/Alliance Quality Bond Short Equity(3)
o EQ/Alliance Small Cap Growth o U.S. Real Estate--Class II
- --------------------------------------------------------------------------------
(1) The "AXA Allocation" portfolios.
(2) Subject to shareholder approval, on or about May 14, 2004, we anticipate
that the EQ/Technology investment option (the "replaced option"), which
invests in a corresponding portfolio of EQ Advisors Trust, will be merged
into the AXA Premier VIP Technology investment option (the "surviving
option"), which invests in a corresponding portfolio of AXA Premier VIP
Trust. At that time, we will move the assets in the replaced option into
the surviving option and all allocation elections to the replaced option
will be considered allocations to the surviving option.
(3) Formerly named "AXA Rosenberg VIT Value Long/Short Equity."
You may allocate amounts to any of the variable investment options. Each
variable investment option is a subaccount of Separate Account No. 49. Each
variable investment option, in turn, invests in a corresponding securities
portfolio of EQ Advisors Trust, AXA Premier VIP Trust, The Universal
Institutional Funds, Inc., or Barr Rosenberg Variable Insurance 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.
ACCOUNT FOR SPECIAL DOLLAR COST AVERAGING. This account pays fixed interest at
guaranteed rates.
TYPES OF CONTRACTS. We offer the contracts for use as:
o A nonqualified annuity ("NQ") for after-tax contributions only.
o An annuity that is an investment vehicle for a qualified defined
contribution plan ("QP").
o Traditional and Roth Inherited IRA beneficiary continuation contract
("Inherited IRA").
o An individual retirement annuity ("IRA"), either traditional IRA ("Rollover
IRA") or Roth IRA ("Roth Conversion IRA").
o An Internal Revenue Code Section 403(b) Tax-Sheltered Annuity ("TSA") --
("Rollover TSA").
A contribution of at least $10,000 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, 2004, is part of the registration statement.
The SAI is available free of charge. You may request one by writing to our
processing office or calling 1-800-789-7771. 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.
X00698/Elite '04 Series
(R-4/15)
Contents of this Prospectus
- --------------------------------------------------------------------
EQUITABLE ACCUMULATOR(R) ELITE(SM)
- --------------------------------------------------------------------------------
Index of key words and phrases 4
Who is Equitable Life? 5
How to reach us 6
Equitable Accumulator(R) Elite(SM) at a glance -- key features 8
- --------------------------------------------------------------------------------
FEE TABLE 11
- --------------------------------------------------------------------------------
Example 14
- --------------------------------------------------------------------------------
1. CONTRACT FEATURES AND BENEFITS 18
- --------------------------------------------------------------------------------
How you can purchase and contribute to your contract 18
Owner and annuitant requirements 21
How you can make your contributions 21
What are your investment options under the contract? 21
Allocating your contributions 27
Your benefit base 30
Annuity purchase factors 30
Our Guaranteed minimum income benefit option 30
Guaranteed minimum death benefit 32
Inherited IRA beneficiary continuation contract 33
Your right to cancel within a certain number of days 34
- --------------------------------------------------------------------------------
2. DETERMINING YOUR CONTRACT'S VALUE 35
- --------------------------------------------------------------------------------
Your account value and cash value 35
Your contract's value in the variable investment options 35
Your contract's value in the guaranteed interest option 35
Your contract's value in the fixed maturity options 35
Your contract's value in the account for special dollar cost
averaging 35
Termination of your contract 35
- --------------------------------------------------------------------------------
3. TRANSFERRING YOUR MONEY AMONG
INVESTMENT OPTIONS 36
- --------------------------------------------------------------------------------
Transferring your account value 36
Disruptive transfer activity 36
Rebalancing your account value 37
- ----------------------
"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
- --------------------------------------------------------------------------------
4. ACCESSING YOUR MONEY 38
- --------------------------------------------------------------------------------
Withdrawing your account value 38
How withdrawals are taken from your account value 39
How withdrawals (and transfers out of the Special 10 year fixed
maturity option) affect your Guaranteed minimum
income benefit, Guaranteed minimum death
benefit and Guaranteed principal benefit option 2 39
Loans under Rollover TSA contracts 40
Surrendering your contract to receive its cash value 40
When to expect payments 40
Your annuity payout options 41
- --------------------------------------------------------------------------------
5. CHARGES AND EXPENSES 43
- --------------------------------------------------------------------------------
Charges that Equitable Life deducts 43
Charges that the Trusts deduct 46
Group or sponsored arrangements 46
Other distribution arrangements 46
- --------------------------------------------------------------------------------
6. PAYMENT OF DEATH BENEFIT 47
- --------------------------------------------------------------------------------
Your beneficiary and payment of benefit 47
How death benefit payment is made 47
Beneficiary continuation option 48
- --------------------------------------------------------------------------------
7. TAX INFORMATION 51
- --------------------------------------------------------------------------------
Overview 51
Buying a contract to fund a retirement arrangement 51
Transfers among investment options 51
Taxation of nonqualified annuities 51
Individual retirement arrangements (IRAs) 53
Special rules for contracts funding qualified plans 55
Tax-Sheltered Annuity contracts (TSAs) 55
Federal and state income tax withholding and
information reporting 56
Impact of taxes to Equitable Life 57
- --------------------------------------------------------------------------------
8. MORE INFORMATION 58
- --------------------------------------------------------------------------------
About our Separate Account No. 49 58
About the Trusts 58
About our fixed maturity options 58
About the general account 59
About other methods of payment 59
Dates and prices at which contract events occur 60
About your voting rights 61
About legal proceedings 61
About our independent auditors 61
Financial statements 61
Transfers of ownership, collateral assignments, loans
and borrowing 61
Distribution of the contracts 62
- --------------------------------------------------------------------------------
9. INCORPORATION OF CERTAIN DOCUMENTS BY REFERENCE 63
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
APPENDICES
- --------------------------------------------------------------------------------
I -- Condensed financial information A-1
II -- Purchase considerations for QP contracts B-1
III -- Market value adjustment example C-1
IV -- Enhanced death benefit example D-1
V -- Hypothetical illustrations E-1
VI -- Guaranteed principal benefit
example F-1
VII -- State contract availability and/or variations of
certain features and benefits G-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 in Page in
Term Prospectus Term Prospectus
account value 35 IRA cover
administrative charge 43 IRS 51
annual administrative charge 43 lifetime required minimum distribution withdrawals 39
annual ratchet death benefit 32 loan reserve account 40
annuitant 18 loans under rollover TSA 40
annuity maturity date 42 lump sum withdrawals 38
annuity payout options 41 market adjusted amount 26
annuity purchase factors 30 market timing 36
automatic investment program 60 market value adjustment 26
beneficiary 47 maturity dates 26
Beneficiary continuation option ("BCO") 48 maturity value 26
benefit base 30 Mortality and expense risks charge 43
business day 60 NQ cover
cash value 35 participant 21
charges for state premium and other applicable taxes 45 portfolio cover
contract date 9 processing office 6
contract date anniversary 9 Protection Plus 32
contract year 9 Protection Plus charge 45
contributions to Roth IRAs 54 QP cover
regular contributions 54 rate to maturity 26
rollovers and direct transfers 54 Rebalancing 37
conversion contributions 54 roll-up death benefit 30
contributions to traditional IRAs 54 Rollover IRA cover
regular contributions 54 Rollover TSA cover
rollovers and transfers 54 Roth Conversion IRA cover
disability, terminal illness or confinement to nursing home 44 Roth IRA 53
disruptive transfer activity 36 SAI cover
distribution charge 43 SEC cover
EQAccess 6 self-directed allocation 27
ERISA 40 Separate Account 49 58
fixed-dollar option 29 special dollar cost averaging 28
fixed maturity options 26 Spousal protection 48
free look 34 standard death benefit 30
free withdrawal amount 44 substantially equal withdrawals 38
general account 59 Successor owner and annuitant 47
general dollar cost averaging 29 systematic withdrawals 38
guaranteed interest option 26 TOPS 6
Guaranteed minimum death benefit 32 TSA cover
Guaranteed minimum income benefit 30 traditional IRA 53
Guaranteed minimum income benefit charge 45 Trusts cover
Guaranteed principal benefits 27 unit 35
Inherited IRA cover variable investment options 21
investment options cover wire transmittals and electronic applications
Investment simplifier 29 withdrawal charge
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 use different words, they have the same meaning in this Prospectus as in the
contract. Your financial professional can provide further explanation about
your contract or supplemental materials.
-------------------------------------------------------------------------------------------------------------------------------
Prospectus Contract or Supplemental Materials
-------------------------------------------------------------------------------------------------------------------------------
fixed maturity options Guarantee Periods (Guaranteed Fixed Interest Accounts in supplemental materials)
variable investment options Investment Funds
account value Annuity Account Value
rate to maturity Guaranteed Rates
unit Accumulation Unit
Guaranteed minimum death benefit Guaranteed death benefit
Guaranteed minimum income benefit Guaranteed Income Benefit
guaranteed interest option Guaranteed Interest Account
-------------------------------------------------------------------------------------------------------------------------------
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 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
$508.31 billion in assets as of December 31, 2003. 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.
Effective on or about September 7, 2004, we expect, subject to regulatory
approval, to change the name of "The Equitable Life Assurance Society of the
United States" to "AXA Equitable Life Insurance Company." When the name change
becomes effective, all references in any current prospectus, prospectus
supplement or statement of additional information to "The Equitable Life
Assurance Society of the United States" will become references to "AXA
Equitable Life Insurance Company." Accordingly, all references to "Equitable
Life" or "Equitable" will become references to "AXA Equitable."
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 CONTRIBUTIONS SENT BY REGULAR MAIL
- --------------------------------------------------------------------------------
Equitable Accumulator(R) Elite(SM)
P.O. Box 13014
Newark, NJ 07188-0014
- --------------------------------------------------------------------------------
FOR CONTRIBUTIONS SENT BY EXPRESS DELIVERY
- --------------------------------------------------------------------------------
Equitable Accumulator(R) Elite(SM)
c/o Bank One, N.A.
300 Harmon Meadow Boulevard, 3rd Floor
Attn: Box 13014
Secaucus, NJ 07094
- --------------------------------------------------------------------------------
FOR ALL OTHER COMMUNICATIONS (E.G., REQUESTS FOR TRANS-
FERS, WITHDRAWALS, OR REQUIRED NOTICES) SENT BY REGULAR
MAIL
- --------------------------------------------------------------------------------
Equitable Accumulator(R) Elite(SM)
P.O. Box 1547
Secaucus, NJ 07096-1547
- --------------------------------------------------------------------------------
FOR ALL OTHER COMMUNICATIONS (E.G., REQUESTS FOR TRANS-
FERS, WITHDRAWALS, OR REQUIRED NOTICES) SENT BY EXPRESS
DELIVERY
- --------------------------------------------------------------------------------
Equitable Accumulator(R) Elite(SM)
200 Plaza Drive, 4th Floor
Secaucus, NJ 07094
- --------------------------------------------------------------------------------
REPORTS WE PROVIDE:
o written confirmation of financial transactions;
o statement of your contract values at the close of each calendar year and
any calendar quarter in which there was a financial transaction; and
o annual statement of your contract values as of the close of the contract
year, including notification of eligibility to exercise the guaranteed
minimum income benefit, if applicable.
- --------------------------------------------------------------------------------
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 (not available through
EQAccess);
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 investment
options;
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 1-888-909-7770. If you are a client with AXA
Advisors you may use EQAccess by visiting our web site at
http://www.axaonline.com and clicking on EQAccess. All other clients may access
EQAccess by visiting our other web site at http://www.equitable.com. 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 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 (1-800-789-7771) to speak with one of our
customer service representatives. Our customer service representatives are
available on any business day from 8:30 a.m. until 5:30 p.m., Eastern time.
WE REQUIRE THAT THE FOLLOWING TYPES OF COMMUNICATIONS BE ON SPECIFIC FORMS WE
PROVIDE FOR THAT PURPOSE:
(1) authorization for telephone transfers by your financial professional
(available only for contracts distributed through AXA Distributors);
(2) conversion of a traditional IRA to a Roth Conversion IRA contract;
6 Who is Equitable Life?
(3) election of the automatic investment program;
(4) election of the rebalancing program;
(5) requests for loans under Rollover TSA contracts;
(6) spousal consent for loans under Rollover TSA contracts;
(7) requests for withdrawals or surrenders from Rollover TSA contracts;
(8) tax withholding elections;
(9) election of the beneficiary continuation option;
(10) IRA contribution recharacterizations;
(11) certain section 1035 exchanges;
(12) direct transfers; and
(13) exercise of the Guaranteed minimum income benefit.
WE ALSO HAVE SPECIFIC FORMS THAT WE RECOMMEND YOU USE FOR THE FOLLOWING TYPES
OF REQUESTS:
(1) address changes;
(2) beneficiary changes;
(3) transfers between investment options;
(4) contract surrender and withdrawal requests;
(5) death claims;
(6) general dollar cost averaging (including the fixed dollar and interest
sweep options); and
(7) special dollar cost averaging.
TO CANCEL OR CHANGE 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 (including the fixed dollar and interest
sweep options);
(3) rebalancing;
(4) special dollar cost averaging;
(5) substantially equal withdrawals;
(6) systematic withdrawals; and
(7) 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
Equitable Accumulator(R) Elite(SM) at a glance -- key features
- --------------------------------------------------------------------------------
Professional investment Equitable Accumulator(R) Elite(SM)'s variable investment options invest in different portfolios managed
management by professional investment advisers.
- ------------------------------------------------------------------------------------------------------------------------------------
Fixed maturity options o Fixed maturity options with maturities ranging from approximately 1 to 10 years (subject to
availability).
o Each fixed maturity option offers a guarantee of principal and interest rate if you hold it to
maturity.
o Special 10 year fixed maturity option (available under Guaranteed principal benefit option 2 only).
-------------------------------------------------------------------------------------------------------
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. If you withdraw or transfer only a
portion of a fixed maturity amount, 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 also applies.
- ------------------------------------------------------------------------------------------------------------------------------------
Guaranteed interest o Principal and interest guarantees.
option
o Interest rates set periodically.
- ------------------------------------------------------------------------------------------------------------------------------------
Account for special dollar Available for dollar cost averaging all or a portion of any eligible contribution to your contract.
cost averaging
- ------------------------------------------------------------------------------------------------------------------------------------
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) or Tax Sheltered
Annuity (TSA) or to fund an employer retirement plan (QP or Qualified Plan), 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 compared 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 and in the SAI.)
- ------------------------------------------------------------------------------------------------------------------------------------
Guaranteed minimum The Guaranteed minimum income benefit provides income protection for you during the annuitant's life
income benefit once the owner elects to annuitize the contract.
- ------------------------------------------------------------------------------------------------------------------------------------
Contribution amounts o Initial minimum: $10,000
o Additional minimum: $500 (NQ, QP and Rollover TSA contracts)
$100 monthly and $300 quarterly under our automatic investment program
(NQ contracts)
$1,000 (Inherited IRA contracts)
$50 (IRA contracts)
Maximum contribution limitations may apply. In general, contributions are limited to $1.5 million
($500,000 for owners or annuitants who are age 81 and older at contract issue).
- ------------------------------------------------------------------------------------------------------------------------------------
Access to your money o Lump sum withdrawals
o Several withdrawal options on a periodic basis
o Loans under Rollover TSA contracts
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 tax penalty.
- ------------------------------------------------------------------------------------------------------------------------------------
Payout options o Fixed annuity payout options
o Variable Immediate Annuity payout options
o Income Manager(R) payout options
- ------------------------------------------------------------------------------------------------------------------------------------
8 Equitable Accumulator(R) Elite(SM) at a glance -- key features
- ------------------------------------------------------------------------------------------------------------------------------------
Additional features o Guaranteed minimum death benefit options
o Guaranteed principal benefit options
o Dollar cost averaging
o Automatic investment program
o Account value rebalancing (quarterly, semiannually, and annually)
o Free transfers
o Waiver of withdrawal charge for disability, terminal illness, confinement to a nursing home and certain
other withdrawals
o Protection Plus, an optional death benefit available under certain contracts
o Spousal protection
o Successor owner/annuitant
o Beneficiary continuation option
- ------------------------------------------------------------------------------------------------------------------------------------
Fees and charges o Daily charges on amounts invested in the variable investment options for mortality and expense risks,
administrative charges, and distribution charges at an annual rate of 1.65%.
o The charges for the Guaranteed minimum death benefits range from 0.0% to 0.60%, annually, of the
applicable benefit base. The benefit base is described under "Your benefit base" in "Contract features and
benefits" later in this Prospectus.
o Annual 0.65% of the applicable benefit base charge for the optional Guaranteed minimum income benefit
until you exercise the benefit, elect another annuity payout option, or the contract date anniversary after
the annuitant reaches age 85, whichever occurs first.
o An annual charge for the optional Guaranteed principal benefit option 2 deducted on the first 10 contract
date anniversaries equal to 0.50% of the account value.
o If your account value at the end of the contract year is less than $50,000, we deduct an annual
administrative charge equal to $30, or during the first two contract years, 2% of your account value, if
less. If your account value is, on the contract date anniversary, $50,000 or more, we will not deduct the
charge.
o Annual 0.35% Protection Plus charge for this optional death benefit.
o No sales charge deducted at the time you make contributions. During the first four contract years
following a contribution, a charge of up to 8% will be deducted from amounts that you withdraw that
exceed 10% of your account value. We use the account value at the beginning of each contract year to
calculate the 10% amount available. There is no withdrawal charge in the fifth and later contract years
following a contribution. Certain exemptions may 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 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." For example, if your contract date is May 1, your contract date
anniversary is April 30.
-------------------------------------------------------------------------------------------------------------
o We deduct a charge designed to approximate certain taxes that may be imposed on us, such as premium taxes
in your state. This 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 the Variable Immediate Annuity payout
options.
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 0.10% to 1.50% annually,
12b-1 fees of either 0.25% or 0.35% annually and other expenses.
- ------------------------------------------------------------------------------------------------------------------------------------
Annuitant issue ages NQ: 0-85
Rollover IRA, Roth Conversion
IRA and Rollover TSA: 20-85
Inherited IRA: 0-70
QP: 20-75
- ------------------------------------------------------------------------------------------------------------------------------------
The above is not a complete description of all material provisions of the
contract. In some cases, restrictions or exceptions apply. Also, all features
of the contract are not necessarily available in your state or at certain ages.
Please see Appendix VII later in this Prospectus for more information on state
availability and/or variations of certain features and benefits.
Equitable Accumulator(R) Elite(SM) at a glance -- key features 9
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, credits, fees and/or charges that are
different from those in the contracts 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 Equitable Accumulator(R) Elite(SM) at a glance -- key features
Fee table
- --------------------------------------------------------------------------------
The following tables describe the fees and expenses that you will pay when
buying, owning, and surrendering the contract. Each of the charges and expenses
is more fully described in "Charges and expenses" later in this Prospectus.
The first table describes fees and expenses that you will pay at the time that
you surrender the contract or if you make certain withdrawals or apply your
cash value to certain payout options or if you purchase a Variable Immediate
Annuity. Charges designed to approximate certain taxes that may be imposed on
us, such as premium taxes in your state, may also apply. Charges for certain
features shown in the fee table are mutually exclusive.
- ------------------------------------------------------------------------------------------------------------------------------------
Charges we deduct from your account value at the time you request certain transactions
- ------------------------------------------------------------------------------------------------------------------------------------
Maximum withdrawal charge as a percentage of contributions with-
drawn (deducted if you surrender your contract or make certain
withdrawals or apply your cash value to certain payout options).(1) 8.00%
Charge if you elect a Variable Immediate Annuity payout option $ 350
- ------------------------------------------------------------------------------------------------------------------------------------
The next table describes the fees and expenses that you will pay periodically during the time that you own the contract, not
including the underlying trust portfolio fees and expenses.
- ------------------------------------------------------------------------------------------------------------------------------------
Charges we deduct from your variable investment options expressed as an annual percentage of daily net assets
- ------------------------------------------------------------------------------------------------------------------------------------
Mortality and expense risks 1.10%
Administrative 0.30%
Distribution 0.25%
-----
Total annual expenses 1.65%
- ------------------------------------------------------------------------------------------------------------------------------------
Charges we deduct from your account value on each contract date anniversary
- ------------------------------------------------------------------------------------------------------------------------------------
Maximum annual administrative charge(3)
If your account value on a contract date anniversary is less than
$50,000(2) $ 30
If your account value on a contract date anniversary is $50,000
or more $ 0
- ------------------------------------------------------------------------------------------------------------------------------------
Charges we deduct from your account value each year if you elect the optional benefit
- ------------------------------------------------------------------------------------------------------------------------------------
Guaranteed minimum death benefit charge (calculated as a
percentage of the applicable benefit base. Deducted annually(3) on
each contract date anniversary for which the benefit is in effect.)
Standard death benefit 0.00%
Annual Ratchet to age 85 0.25% of the Annual Ratchet to age 85 benefit base
Greater of 6% Roll up to age 85 or Annual Ratchet to age 85 0.60% of the greater of 6% Roll up to age 85
benefit base or the Annual Ratchet to age 85 benefit
base, as applicable
- ------------------------------------------------------------------------------------------------------------------------------------
Guaranteed principal benefit charge for option 2 (calculated as
a percentage of the account value. Deducted annually(3) on the first 10
contract date anniversaries.) 0.50%
- ------------------------------------------------------------------------------------------------------------------------------------
Guaranteed minimum income benefit charge (calculated as a
percentage of the applicable benefit base. Deducted annually(3) on each
contract date anniversary for which the benefit is in effect.) 0.65%
- ------------------------------------------------------------------------------------------------------------------------------------
Protection Plus benefit charge (calculated as a percentage of the
account value. Deducted annually(3) on each contract date anniversary
for which the benefit is in effect.) 0.35%
- ------------------------------------------------------------------------------------------------------------------------------------
Net loan interest charge - Rollover TSA contracts only (calcu-
lated and deducted daily as a percentage of the outstanding loan
amount) 2.00%(4)
- ------------------------------------------------------------------------------------------------------------------------------------
Fee table 11
You also bear your proportionate share of all fees and expenses paid by a
"Portfolio" that corresponds to any variable investment option you are using.
This table shows the lowest and highest total operating expenses charged by any
of the Portfolios that you will pay periodically during the time that you own
the contract. These fees and expenses are reflected in the Portfolio's net
asset value each day. Therefore, they reduce the investment return of the
Portfolio and the related variable investment option. Actual fees and expenses
are likely to fluctuate from year to year. More detail concerning each
Portfolio's fees and expenses is contained in the Trust prospectus for the
Portfolio.
- ------------------------------------------------------------------------------------------------------------------------------------
Portfolio operating expenses expressed as an annual percentage of daily net assets
- ------------------------------------------------------------------------------------------------------------------------------------
Total Annual Portfolio Operating Expenses for 2003 (expenses that are deducted Lowest Highest
from Portfolio assets including management fees, 12b-1 fees, service fees, and/or ----- -------
expenses)(5) 0.56% 10.23%
This table shows the fees and expenses for 2003 as an annual percentage of each
Portfolio's daily average net assets.
- ------------------------------------------------------------------------------------------------------------------------------------
Total Fee Waiv- Net Total
Annual ers Annual
Underlying Expenses and/or Expenses
Manage- Portfolio (Before Expense After
ment 12b-1 Other Fees and Expense Reimburse- Expense
Portfolio Name Fees(6) Fees(7) Expenses(8) Expenses(9) Limitation) ments(10) Limitations
- ------------------------------------------------------------------------------------------------------------------------------------
AXA PREMIER VIP TRUST:
- ------------------------------------------------------------------------------------------------------------------------------------
AXA Aggressive Allocation 0.10% 0.25% 5.91% 1.08% 7.34% (5.98)% 1.36%
AXA Conservative Allocation 0.10% 0.25% 9.04% 0.84% 10.23% (9.13)% 1.10%
AXA Conservative-Plus Allocation 0.10% 0.25% 4.13% 0.88% 5.36% (4.21)% 1.15%
AXA Moderate Allocation 0.10% 0.25% 0.39% 0.86% 1.60% (0.43)% 1.17%
AXA Moderate-Plus Allocation 0.10% 0.25% 1.77% 1.13% 3.25% (1.87)% 1.38%
AXA Premier VIP Aggressive Equity 0.62% 0.25% 0.15% -- 1.02% -- 1.02%
AXA Premier VIP Core Bond 0.60% 0.25% 0.26% -- 1.11% (0.16)% 0.95%
AXA Premier VIP Health Care 1.20% 0.25% 0.48% -- 1.93% (0.08)% 1.85%
AXA Premier VIP High Yield 0.59% 0.25% 0.16% -- 1.00% -- 1.00%
AXA Premier VIP International Equity 1.05% 0.25% 0.73% -- 2.03% (0.23)% 1.80%
AXA Premier VIP Large Cap Core Equity 0.90% 0.25% 0.52% -- 1.67% (0.32)% 1.35%
AXA Premier VIP Large Cap Growth 0.90% 0.25% 0.43% -- 1.58% (0.23)% 1.35%
AXA Premier VIP Large Cap Value 0.90% 0.25% 0.43% -- 1.58% (0.23)% 1.35%
AXA Premier VIP Small/Mid Cap Growth 1.10% 0.25% 0.35% -- 1.70% (0.10)% 1.60%
AXA Premier VIP Small/Mid Cap Value 1.10% 0.25% 0.31% -- 1.66% (0.06)% 1.60%
AXA Premier VIP Technology 1.20% 0.25% 0.83% -- 2.28% (0.43)% 1.85%
- ------------------------------------------------------------------------------------------------------------------------------------
EQ ADVISORS TRUST:
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/Alliance Common Stock 0.48% 0.25% 0.06% -- 0.79% -- 0.79%
EQ/Alliance Growth and Income 0.57% 0.25% 0.06% -- 0.88% -- 0.88%
EQ/Alliance Intermediate Government Securities 0.49% 0.25% 0.08% -- 0.82% -- 0.82%
EQ/Alliance International 0.74% 0.25% 0.13% -- 1.12% (0.02)% 1.10%
EQ/Alliance Premier Growth 0.90% 0.25% 0.05% -- 1.20% (0.04)% 1.16%
EQ/Alliance Quality Bond 0.52% 0.25% 0.06% -- 0.83% -- 0.83%
EQ/Alliance Small Cap Growth 0.75% 0.25% 0.07% -- 1.07% -- 1.07%
EQ/Bernstein Diversified Value 0.64% 0.25% 0.06% -- 0.95% 0.00% 0.95%
EQ/Calvert Socially Responsible 0.65% 0.25% 0.55% -- 1.45% (0.40)% 1.05%
EQ/Capital Guardian International 0.85% 0.25% 0.21% -- 1.31% (0.11)% 1.20%
EQ/Capital Guardian Research 0.65% 0.25% 0.07% -- 0.97% (0.02)% 0.95%
EQ/Capital Guardian U.S. Equity 0.65% 0.25% 0.07% -- 0.97% (0.02)% 0.95%
EQ/Emerging Markets Equity 1.15% 0.25% 0.40% -- 1.80% 0.00% 1.80%
EQ/Equity 500 Index 0.25% 0.25% 0.06% -- 0.56% -- 0.56%
EQ/Evergreen Omega 0.65% 0.25% 0.25% -- 1.15% (0.20)% 0.95%
EQ/FI Mid Cap 0.70% 0.25% 0.08% -- 1.03% (0.03)% 1.00%
EQ/FI Small/Mid Cap Value 0.75% 0.25% 0.10% -- 1.10% 0.00% 1.10%
EQ/Janus Large Cap Growth 0.90% 0.25% 0.09% -- 1.24% (0.09)% 1.15%
EQ/J.P. Morgan Core Bond 0.44% 0.25% 0.08% -- 0.77% 0.00% 0.77%
EQ/Lazard Small Cap Value 0.75% 0.25% 0.10% -- 1.10% 0.00% 1.10%
EQ/Marsico Focus 0.90% 0.25% 0.07% -- 1.22% (0.07)% 1.15%
EQ/Mercury Basic Value Equity 0.60% 0.25% 0.07% -- 0.92% 0.00% 0.92%
EQ/Mercury International Value 0.85% 0.25% 0.16% -- 1.26% (0.01)% 1.25%
EQ/MFS Emerging Growth Companies 0.65% 0.25% 0.07% -- 0.97% -- 0.97%
- ------------------------------------------------------------------------------------------------------------------------------------
12 Fee table
- ----------------------------------------------------------------------------------------------------------------------------------
Total Fee Waiv- Net Total
Annual ers Annual
Underlying Expenses and/or Expense
Manage- Portfolio (Before Expense After
ment 12b-1 Other Fees and Expense Reimburse- Expense
Portfolio Name Fees(6) Fees(7) Expenses(8) Expenses(9) Limitation) ments(10) Limitations
- ----------------------------------------------------------------------------------------------------------------------------------
EQ ADVISORS TRUST:
- ----------------------------------------------------------------------------------------------------------------------------------
EQ/MFS Investors Trust 0.60% 0.25% 0.11% -- 0.96% (0.01)% 0.95%
EQ/Money Market 0.33% 0.25% 0.06% -- 0.64% -- 0.64%
EQ/Putnam Growth & Income Value 0.60% 0.25% 0.10% -- 0.95% 0.00% 0.95%
EQ/Putnam Voyager 0.65% 0.25% 0.13% -- 1.03% (0.08)% 0.95%
EQ/Small Company Index 0.25% 0.25% 0.35% -- 0.85% 0.00% 0.85%
EQ/Technology 0.90% 0.25% 0.09% -- 1.24% (0.09)% 1.15%
- ----------------------------------------------------------------------------------------------------------------------------------
BARR ROSENBERG VARIABLE INSURANCE TRUST:
- ----------------------------------------------------------------------------------------------------------------------------------
Laudus Rosenberg VIT Value Long/Short Equity 1.50% 0.25% 5.80% -- 7.55% (4.57)% 2.98%
- ----------------------------------------------------------------------------------------------------------------------------------
THE UNIVERSAL INSTITUTIONAL FUNDS, INC.:
- ----------------------------------------------------------------------------------------------------------------------------------
U.S. Real Estate -- Class II 0.80% 0.35% 0.31% -- 1.46% (0.11)% 1.35%
- ----------------------------------------------------------------------------------------------------------------------------------
(1) Deducted upon a withdrawal of amounts in excess of the 10% free withdrawal
amount, if applicable
The withdrawal charge percentage we use is determined by the contract year in which you Contract
make the withdrawal or surrender your contract. For each contribution, we consider the Year
contract year in which we receive that contribution to be "contract year 1") 1..............................8.00%
2..............................7.00%
3..............................6.00%
4..............................5.00%
5+.............................0.00%
(2) During the first two contract years this charge, if it applies, is equal to
the lesser of $30 or 2% of your account value. Thereafter, the charge is
$30 for each contract year.
(3) If the contract is surrendered or annuitized or a death benefit is paid on
any date other than the contract date anniversary, we will deduct a pro
rata portion of the charge for that year.
(4) We charge interest on loans under Rollover TSA contracts but also credit
you interest on your loan reserve account. Our net loan interest charge is
determined by the excess between the interest rate we charge over the
interest rate we credit. See "Loans under Rollover TSA contracts" later in
this Prospectus for more information on how the loan interest is calculated
and for restrictions that may apply.
(5) "Total Annual Portfolio Operating Expenses" are based, in part, on
estimated amounts for options added during the fiscal year 2003 and for the
underlying portfolios.
(6) 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.
(7) 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.
(8) Other expenses shown are those incurred in 2003. The amounts shown as
"Other Expenses" will fluctuate from year to year depending on actual
expenses. See footnote (10) for any expense limitation agreement
information.
(9) The AXA Allocation variable investment options invest in corresponding
portfolios of the AXA Premier VIP Trust. Each AXA Allocation portfolio in
turn invests in shares of other portfolios of the EQ Advisors Trust and AXA
Premier VIP Trust ("the underlying portfolios"). Amounts shown reflect each
AXA Allocation portfolio's pro rata share of the fees and expenses of the
various underlying portfolios in which it invests. The fees and expenses
have been estimated based on the respective weighted investment allocations
as of 12/31/03. A "-" indicates that the listed portfolio does not invest
in underlying portfolios, i.e., it is not an allocation portfolio.
(10) The amounts shown reflect any fee waivers and/or expense reimbursements
that applied to each Portfolio. A"-" indicates that there is no expense
limitation in effect. "0.00%" indicates that the expense limitation
arrangement did not result in a fee waiver or reimbursement. Equitable
Life, the investment manager of AXA Premier VIP Trust and EQ Advisors
Trust, has entered into Expense Limitation Agreements with respect to
certain Portfolios, which are effective through April 30, 2005. Under these
agreements Equitable Life has agreed to waive or limit its fees and assume
other expenses of certain Portfolios, if necessary, in an amount that
limits each affected Portfolio's total Annual Expenses (exclusive of
interest, taxes, brokerage commissions, capitalized expenditures and
extraordinary expenses) to not more than specified amounts. Therefore, 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. Morgan
Stanley Investment Management Inc., which does business in certain
instances as "Van Kampen," is the manager of the Universal Institutional
Funds, Inc. -- U.S. Real Estate Portfolio -- Class II and has voluntarily
agreed to reduce its management fee and/or reimburse the Portfolio so that
total annual operating expenses of the Portfolio (exclusive of investment
related expenses, such as foreign country tax expense and interest expense
on amounts borrowed) are not more than specified amounts. Van Kampen
reserves the right to terminate any waiver and/or reimbursement at any time
without notice. Charles Schwab Investment Management, Inc., the manager of
the Barr Rosenberg Variable Insurance Trust -- Laudus Rosenberg VIT Value
Long/Short Equity Portfolio, has voluntarily agreed to reimburse expenses
in excess of specified amounts. See this Prospectus for each applicable
underlying Trust for more information about the arrangements. In addition,
a portion of the brokerage commissions of certain Portfolios of EQ Advisors
Trust Portfolio and AXA Premier VIP Trust portfolio is used to reduce the
applicable Portfolio's expenses. If the above table reflected both the
expense limitation arrangements plus the portion of the brokerage
commissions used to reduce portfolio expenses, the net expenses would be as
shown in the table below:
- ------------------------------------------------------
Portfolio Name
- ------------------------------------------------------
AXA Aggressive Allocation 0.95%
- ------------------------------------------------------
AXA Conservative Allocation 0.73%
- ------------------------------------------------------
AXA Conservative-Plus Allocation 0.78%
- ------------------------------------------------------
AXA Moderate Allocation 0.79%
- ------------------------------------------------------
AXA Moderate-Plus Allocation 0.99%
- ------------------------------------------------------
AXA Premier VIP Aggressive Equity 0.95%
- ------------------------------------------------------
AXA Premier VIP Health Care 1.84%
- ------------------------------------------------------
AXA Premier VIP International Equity 1.73%
- ------------------------------------------------------
AXA Premier VIP Large Cap Core Equity 1.32%
- ------------------------------------------------------
AXA Premier VIP Large Cap Growth 1.32%
- ------------------------------------------------------
Fee table 13
- ------------------------------------------------------
Portfolio Name
- ------------------------------------------------------
AXA Premier VIP Large Cap Value 1.28%
- ------------------------------------------------------
AXA Premier VIP Small/Mid Cap Growth 1.46%
- ------------------------------------------------------
AXA Premier VIP Small/Mid Cap Value 1.52%
- ------------------------------------------------------
AXA Premier VIP Technology 1.70%
- ------------------------------------------------------
EQ/Alliance Common Stock 0.77%
- ------------------------------------------------------
EQ/Alliance Growth and Income 0.85%
- ------------------------------------------------------
EQ/Alliance Premier Growth 1.15%
- ------------------------------------------------------
EQ/Alliance Small Cap Growth 1.03%
- ------------------------------------------------------
EQ/Calvert Socially Responsible 1.00%
- ------------------------------------------------------
EQ/Capital Guardian International 1.18%
- ------------------------------------------------------
EQ/Capital Guardian Research 0.93%
- ------------------------------------------------------
EQ/Capital Guardian U.S. Equity 0.93%
- ------------------------------------------------------
EQ/Emerging Markets Equity 1.78%
- ------------------------------------------------------
EQ/Evergreen Omega 0.84%
- ------------------------------------------------------
EQ/FI Mid Cap 0.88%
- ------------------------------------------------------
EQ/FI Small/Mid Cap Value 1.04%
- ------------------------------------------------------
EQ/Lazard Small Cap Value 1.00%
- ------------------------------------------------------
EQ/Marsico Focus 1.10%
- ------------------------------------------------------
EQ/Mercury Basic Value Equity 0.91%
- ------------------------------------------------------
EQ/Mercury International Value 1.18%
- ------------------------------------------------------
EQ/MFS Emerging Growth Companies 0.96%
- ------------------------------------------------------
EQ/MFS Investors Trust 0.94%
- ------------------------------------------------------
EQ/Putnam Growth & Income Value 0.93%
- ------------------------------------------------------
EQ/Putnam Voyager 0.93%
- ------------------------------------------------------
EQ/Technology 1.01%
- ------------------------------------------------------
EXAMPLE
This example is intended to help you compare the cost of investing in the
contract with the cost of investing in other variable annuity contracts. These
costs include contract owner transaction expenses, contract fees, separate
account annual expenses, and underlying trust fees and expenses (including the
underlying portfolio fees and expenses).
The example below shows the expenses that a hypothetical contract owner (who
has elected the Guaranteed minimum income benefit with the enhanced death
benefit that provides for the greater of the 6% Roll up to age 85 or the Annual
Ratchet to age 85 and Protection Plus) would pay in the situations illustrated.
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 $1.60 per $10,000.
The fixed maturity options, guaranteed interest option and the account for
special dollar cost averaging are not covered by the fee table and examples.
However, the annual administrative charge, the withdrawal charge, the charge
for any optional benefits and the charge if you elect a Variable Immediate
Annuity payout option do apply to the fixed maturity options, guaranteed
interest option and the account for special dollar cost averaging. 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.
The example assumes that you invest $10,000 in the contract for the time
periods indicated. The example also assumes that your investment has a 5%
return each year. This example 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 example
is not an estimate or guarantee of future investment performance.
Although your actual costs may be higher or lower, based on these assumptions,
your costs would be:
14 Fee table
- -----------------------------------------------------------------------------------------------------------
If you surrender your contract at the end
of the applicable time period
-----------------------------------------------------------
Portfolio Name 1 year 3 years 5 years 10 years
- -----------------------------------------------------------------------------------------------------------
AXA PREMIER VIP TRUST:
- -----------------------------------------------------------------------------------------------------------
AXA Aggressive Allocation $ 1,915.09 $ 3,790.41 $ 5,076.08 $ 9,078.44
AXA Conservative Allocation $ 2,218.06 $ 4,532.68 $ 6,073.48 $ 10,144.25
AXA Conservative-Plus Allocation $ 1,706.96 $ 3,250.90 $ 4,306.31 $ 8,093.21
AXA Moderate Allocation $ 1,312.50 $ 2,160.11 $ 2,638.99 $ 5,483.23
AXA Moderate-Plus Allocation $ 1,485.63 $ 2,650.03 $ 3,405.92 $ 6,764.00
AXA Premier VIP Aggressive Equity $ 1,251.23 $ 1,982.45 $ 2,353.76 $ 4,972.29
AXA Premier VIP Core Bond $ 1,260.68 $ 2,009.99 $ 2,398.22 $ 5,053.17
AXA Premier VIP Health Care $ 1,346.76 $ 2,258.46 $ 2,795.29 $ 5,755.27
AXA Premier VIP High Yield $ 1,249.13 $ 1,976.33 $ 2,343.85 $ 4,954.21
AXA Premier VIP International Equity $ 1,357.26 $ 2,288.46 $ 2,842.73 $ 5,836.72
AXA Premier VIP Large Cap Core Equity $ 1,319.47 $ 2,180.16 $ 2,670.95 $ 5,539.31
AXA Premier VIP Large Cap Growth $ 1,310.02 $ 2,152.95 $ 2,627.57 $ 5,463.14
AXA Premier VIP Large Cap Value $ 1,310.02 $ 2,152.95 $ 2,627.57 $ 5,463.14
AXA Premier VIP Small/Mid Cap Growth $ 1,322.62 $ 2,189.21 $ 2,685.37 $ 5,564.54
AXA Premier VIP Small/Mid Cap Value $ 1,318.42 $ 2,177.14 $ 2,666.14 $ 5,530.89
AXA Premier VIP Technology $ 1,383.51 $ 2,363.18 $ 2,960.40 $ 6,036.54
- -----------------------------------------------------------------------------------------------------------
EQ ADVISORS TRUST:
- -----------------------------------------------------------------------------------------------------------
EQ/Alliance Common Stock $ 1,227.08 $ 1,911.83 $ 2,239.32 $ 4,762.05
EQ/Alliance Growth and Income $ 1,236.53 $ 1,939.51 $ 2,284.24 $ 4,844.93
EQ/Alliance Intermediate Government Securities $ 1,230.23 $ 1,921.06 $ 2,254.31 $ 4,789.76
EQ/Alliance International $ 1,261.73 $ 2,013.05 $ 2,403.15 $ 5,062.11
EQ/Alliance Premier Growth $ 1,270.13 $ 2,037.48 $ 2,442.51 $ 5,133.28
EQ/Alliance Quality Bond $ 1,231.28 $ 1,924.14 $ 2,259.30 $ 4,798.98
EQ/Alliance Small Cap Growth $ 1,256.48 $ 1,997.76 $ 2,378.48 $ 5,017.32
EQ/Bernstein Diversified Value $ 1,243.88 $ 1,961.00 $ 2,319.05 $ 4,908.84
EQ/Calvert Socially Responsible $ 1,296.37 $ 2,113.55 $ 2,564.61 $ 5,351.80
EQ/Capital Guardian International $ 1,281.67 $ 2,071.00 $ 2,496.40 $ 5,230.15
EQ/Capital Guardian Research $ 1,245.98 $ 1,967.13 $ 2,328.98 $ 4,927.02
EQ/Capital Guardian U.S. Equity $ 1,245.98 $ 1,967.13 $ 2,328.98 $ 4,927.02
EQ/Emerging Markets Equity $ 1,333.12 $ 2,219.36 $ 2,733.30 $ 5,648.05
EQ/Equity 500 Index $ 1,202.94 $ 1,840.86 $ 2,123.72 $ 4,546.62
EQ/Evergreen Omega $ 1,264.88 $ 2,022.22 $ 2,417.93 $ 5,088.87
EQ/FI Mid Cap $ 1,252.28 $ 1,985.52 $ 2,358.71 $ 4,981.31
EQ/FI Small/Mid Cap Value $ 1,259.63 $ 2,006.94 $ 2,393.29 $ 5,044.22
EQ/J.P. Morgan Core Bond $ 1,224.98 $ 1,905.67 $ 2,229.31 $ 4,743.52
EQ/Janus Large Cap Growth $ 1,274.33 $ 2,049.68 $ 2,462.14 $ 5,168.63
EQ/Lazard Small Cap Value $ 1,259.63 $ 2,006.94 $ 2,393.29 $ 5,044.22
EQ/Marsico Focus $ 1,272.23 $ 2,043.58 $ 2,452.33 $ 5,150.97
EQ/Mercury Basic Value Equity $ 1,240.73 $ 1,951.79 $ 2,304.14 $ 4,881.51
EQ/Mercury International Value $ 1,276.43 $ 2,055.77 $ 2,471.94 $ 5,186.26
EQ/MFS Emerging Growth Companies $ 1,245.98 $ 1,967.13 $ 2,328.98 $ 4,927.02
EQ/MFS Investors Trust $ 1,244.93 $ 1,964.06 $ 2,324.01 $ 4,917.94
- -----------------------------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------------------
If you annuitize at the end
of the applicable time period
-----------------------------------------------------------
Portfolio Name 1 year 3 years 5 years 10 years
- -----------------------------------------------------------------------------------------------------------
AXA PREMIER VIP TRUST:
- -----------------------------------------------------------------------------------------------------------
AXA Aggressive Allocation $ 1,465.09 $ 3,540.41 $ 5,426.08 $ 9,428.44
AXA Conservative Allocation $ 1,768.06 $ 4,282.68 $ 6,423.48 $ 10,494.25
AXA Conservative-Plus Allocation $ 1,256.96 $ 3,000.90 $ 4,656.31 $ 8,443.21
AXA Moderate Allocation $ 862.50 $ 1,910.11 $ 2,988.99 $ 5,833.23
AXA Moderate-Plus Allocation $ 1,035.63 $ 2,400.03 $ 3,755.92 $ 7,114.00
AXA Premier VIP Aggressive Equity $ 801.23 $ 1,732.45 $ 2,703.76 $ 5,322.29
AXA Premier VIP Core Bond $ 810.68 $ 1,759.99 $ 2,748.22 $ 5,403.17
AXA Premier VIP Health Care $ 896.76 $ 2,008.46 $ 3,145.29 $ 6,105.27
AXA Premier VIP High Yield $ 799.13 $ 1,726.33 $ 2,693.85 $ 5,304.21
AXA Premier VIP International Equity $ 907.26 $ 2,038.46 $ 3,192.73 $ 6,186.72
AXA Premier VIP Large Cap Core Equity $ 869.47 $ 1,930.16 $ 3,020.95 $ 5,889.31
AXA Premier VIP Large Cap Growth $ 860.02 $ 1,902.95 $ 2,977.57 $ 5,813.14
AXA Premier VIP Large Cap Value $ 860.02 $ 1,902.95 $ 2,977.57 $ 5,813.14
AXA Premier VIP Small/Mid Cap Growth $ 872.62 $ 1,939.21 $ 3,035.37 $ 5,914.54
AXA Premier VIP Small/Mid Cap Value $ 868.42 $ 1,927.14 $ 3,016.14 $ 5,880.89
AXA Premier VIP Technology $ 933.51 $ 2,113.18 $ 3,310.40 $ 6,386.54
- -----------------------------------------------------------------------------------------------------------
EQ ADVISORS TRUST:
- -----------------------------------------------------------------------------------------------------------
EQ/Alliance Common Stock $ 777.08 $ 1,661.83 $ 2,589.32 $ 5,112.05
EQ/Alliance Growth and Income $ 786.53 $ 1,689.51 $ 2,634.24 $ 5,194.93
EQ/Alliance Intermediate Government Securities $ 780.23 $ 1,671.06 $ 2,604.31 $ 5,139.76
EQ/Alliance International $ 811.73 $ 1,763.05 $ 2,753.15 $ 5,412.11
EQ/Alliance Premier Growth $ 820.13 $ 1,787.48 $ 2,792.51 $ 5,483.28
EQ/Alliance Quality Bond $ 781.28 $ 1,674.14 $ 2,609.30 $ 5,148.98
EQ/Alliance Small Cap Growth $ 806.48 $ 1,747.76 $ 2,728.48 $ 5,367.32
EQ/Bernstein Diversified Value $ 793.88 $ 1,711.00 $ 2,669.05 $ 5,258.84
EQ/Calvert Socially Responsible $ 846.37 $ 1,863.55 $ 2,914.61 $ 5,701.80
EQ/Capital Guardian International $ 831.67 $ 1,821.00 $ 2,846.40 $ 5,580.15
EQ/Capital Guardian Research $ 795.98 $ 1,717.13 $ 2,678.98 $ 5,277.02
EQ/Capital Guardian U.S. Equity $ 795.98 $ 1,717.13 $ 2,678.98 $ 5,277.02
EQ/Emerging Markets Equity $ 883.12 $ 1,969.36 $ 3,083.30 $ 5,998.05
EQ/Equity 500 Index $ 752.94 $ 1,590.86 $ 2,473.72 $ 4,896.62
EQ/Evergreen Omega $ 814.88 $ 1,772.22 $ 2,767.93 $ 5,438.87
EQ/FI Mid Cap $ 802.28 $ 1,735.52 $ 2,708.71 $ 5,331.31
EQ/FI Small/Mid Cap Value $ 809.63 $ 1,756.94 $ 2,743.29 $ 5,394.22
EQ/J.P. Morgan Core Bond $ 774.98 $ 1,655.67 $ 2,579.31 $ 5,093.52
EQ/Janus Large Cap Growth $ 824.33 $ 1,799.68 $ 2,812.14 $ 5,518.63
EQ/Lazard Small Cap Value $ 809.63 $ 1,756.94 $ 2,743.29 $ 5,394.22
EQ/Marsico Focus $ 822.23 $ 1,793.58 $ 2,802.33 $ 5,500.97
EQ/Mercury Basic Value Equity $ 790.73 $ 1,701.79 $ 2,654.14 $ 5,231.51
EQ/Mercury International Value $ 826.43 $ 1,805.77 $ 2,821.94 $ 5,536.26
EQ/MFS Emerging Growth Companies $ 795.98 $ 1,717.13 $ 2,678.98 $ 5,277.02
EQ/MFS Investors Trust $ 794.93 $ 1,714.06 $ 2,674.01 $ 5,267.94
- -----------------------------------------------------------------------------------------------------------
- -------------------------------------------------------------------------------------------------------------
If you do not surrender your contract at the end
of the applicable time period
-------------------------------------------------------------
Portfolio Name 1 year 3 years 5 years 10 years
- -------------------------------------------------------------------------------------------------------------
AXA PREMIER VIP TRUST:
- -------------------------------------------------------------------------------------------------------------
AXA Aggressive Allocation $ 1,115.09 $ 3,190.41 $ 5,076.08 $ 9,078.44
AXA Conservative Allocation $ 1,418.06 $ 3,932.68 $ 6,073.48 $ 10,144.25
AXA Conservative-Plus Allocation $ 906.96 $ 2,650.90 $ 4,306.31 $ 8,093.21
AXA Moderate Allocation $ 512.50 $ 1,560.11 $ 2,638.99 $ 5,483.23
AXA Moderate-Plus Allocation $ 685.63 $ 2,050.03 $ 3,405.92 $ 6,764.00
AXA Premier VIP Aggressive Equity $ 451.23 $ 1,382.45 $ 2,353.76 $ 4,972.29
AXA Premier VIP Core Bond $ 460.68 $ 1,409.99 $ 2,398.22 $ 5,053.17
AXA Premier VIP Health Care $ 546.76 $ 1,658.46 $ 2,795.29 $ 5,755.27
AXA Premier VIP High Yield $ 449.13 $ 1,376.33 $ 2,343.85 $ 4,954.21
AXA Premier VIP International Equity $ 557.26 $ 1,688.46 $ 2,842.73 $ 5,836.72
AXA Premier VIP Large Cap Core Equity $ 519.47 $ 1,580.16 $ 2,670.95 $ 5,539.31
AXA Premier VIP Large Cap Growth $ 510.02 $ 1,552.95 $ 2,627.57 $ 5,463.14
AXA Premier VIP Large Cap Value $ 510.02 $ 1,552.95 $ 2,627.57 $ 5,463.14
AXA Premier VIP Small/Mid Cap Growth $ 522.62 $ 1,589.21 $ 2,685.37 $ 5,564.54
AXA Premier VIP Small/Mid Cap Value $ 518.42 $ 1,577.14 $ 2,666.14 $ 5,530.89
AXA Premier VIP Technology $ 583.51 $ 1,763.18 $ 2,960.40 $ 6,036.54
- -------------------------------------------------------------------------------------------------------------
EQ ADVISORS TRUST:
- -------------------------------------------------------------------------------------------------------------
EQ/Alliance Common Stock $ 427.08 $ 1,311.83 $ 2,239.32 $ 4,762.05
EQ/Alliance Growth and Income $ 436.53 $ 1,339.51 $ 2,284.24 $ 4,844.93
EQ/Alliance Intermediate Government Securities $ 430.23 $ 1,321.06 $ 2,254.31 $ 4,789.76
EQ/Alliance International $ 461.73 $ 1,413.05 $ 2,403.15 $ 5,062.11
EQ/Alliance Premier Growth $ 470.13 $ 1,437.48 $ 2,442.51 $ 5,133.28
EQ/Alliance Quality Bond $ 431.28 $ 1,324.14 $ 2,259.30 $ 4,798.98
EQ/Alliance Small Cap Growth $ 456.48 $ 1,397.76 $ 2,378.48 $ 5,017.32
EQ/Bernstein Diversified Value $ 443.88 $ 1,361.00 $ 2,319.05 $ 4,908.84
EQ/Calvert Socially Responsible $ 496.37 $ 1,513.55 $ 2,564.61 $ 5,351.80
EQ/Capital Guardian International $ 481.67 $ 1,471.00 $ 2,496.40 $ 5,230.15
EQ/Capital Guardian Research $ 445.98 $ 1,367.13 $ 2,328.98 $ 4,927.02
EQ/Capital Guardian U.S. Equity $ 445.98 $ 1,367.13 $ 2,328.98 $ 4,927.02
EQ/Emerging Markets Equity $ 533.12 $ 1,619.36 $ 2,733.30 $ 5,648.05
EQ/Equity 500 Index $ 402.94 $ 1,240.86 $ 2,123.72 $ 4,546.62
EQ/Evergreen Omega $ 464.88 $ 1,422.22 $ 2,417.93 $ 5,088.87
EQ/FI Mid Cap $ 452.28 $ 1,385.52 $ 2,358.71 $ 4,981.31
EQ/FI Small/Mid Cap Value $ 459.63 $ 1,406.94 $ 2,393.29 $ 5,044.22
EQ/J.P. Morgan Core Bond $ 424.98 $ 1,305.67 $ 2,229.31 $ 4,743.52
EQ/Janus Large Cap Growth $ 474.33 $ 1,449.68 $ 2,462.14 $ 5,168.63
EQ/Lazard Small Cap Value $ 459.63 $ 1,406.94 $ 2,393.29 $ 5,044.22
EQ/Marsico Focus $ 472.23 $ 1,443.58 $ 2,452.33 $ 5,150.97
EQ/Mercury Basic Value Equity $ 440.73 $ 1,351.79 $ 2,304.14 $ 4,881.51
EQ/Mercury International Value $ 476.43 $ 1,455.77 $ 2,471.94 $ 5,186.26
EQ/MFS Emerging Growth Companies $ 445.98 $ 1,367.13 $ 2,328.98 $ 4,927.02
EQ/MFS Investors Trust $ 444.93 $ 1,364.06 $ 2,324.01 $ 4,917.94
- -------------------------------------------------------------------------------------------------------------
Fee table 15
- --------------------------------------------------------------------------------------------------------
If you surrender your contract at the end
of the applicable time period
---------------------------------------------------------
Portfolio Name 1 year 3 years 5 years 10 years
- --------------------------------------------------------------------------------------------------------
EQ ADVISORS TRUST:
- --------------------------------------------------------------------------------------------------------
EQ/Money Market $ 1,211.34 $ 1,865.58 $ 2,164.06 $ 4,622.14
EQ/Putnam Growth & Income Value $ 1,243.88 $ 1,961.00 $ 2,319.05 $ 4,908.84
EQ/Putnam Voyager $ 1,252.28 $ 1,985.52 $ 2,358.71 $ 4,981.31
EQ/Small Company Index $ 1,233.38 $ 1,930.29 $ 2,269.28 $ 4,817.39
EQ/Technology $ 1,274.33 $ 2,049.68 $ 2,462.14 $ 5,168.63
- --------------------------------------------------------------------------------------------------------
BARR ROSENBERG VARIABLE INSURANCE TRUST:
- --------------------------------------------------------------------------------------------------------
Laudus Rosenberg VIT Value Long/Short Equity $ 1,936.77 $ 3,845.22 $ 5,152.19 $ 9,168.21
- --------------------------------------------------------------------------------------------------------
THE UNIVERSAL INSTITUTIONAL FUNDS, INC.:
- --------------------------------------------------------------------------------------------------------
U.S. Real Estate -- Class II $ 1,297.42 $ 2,116.59 $ 2,569.47 $ 5,360.42
- --------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------
If you annuitize at the end
of the applicable time period
---------------------------------------------------------
Portfolio Name 1 year 3 years 5 years 10 years
- --------------------------------------------------------------------------------------------------------
EQ ADVISORS TRUST:
- --------------------------------------------------------------------------------------------------------
EQ/Money Market $ 761.34 $ 1,615.58 $ 2,514.06 $ 4,972.14
EQ/Putnam Growth & Income Value $ 793.88 $ 1,711.00 $ 2,669.05 $ 5,258.84
EQ/Putnam Voyager $ 802.28 $ 1,735.52 $ 2,708.71 $ 5,331.31
EQ/Small Company Index $ 783.38 $ 1,680.29 $ 2,619.28 $ 5,167.39
EQ/Technology $ 824.33 $ 1,799.68 $ 2,812.14 $ 5,518.63
- --------------------------------------------------------------------------------------------------------
BARR ROSENBERG VARIABLE INSURANCE TRUST:
- --------------------------------------------------------------------------------------------------------
Laudus Rosenberg VIT Value Long/Short Equity $ 1,486.77 $ 3,595.22 $ 5,502.19 $ 9,518.21
- --------------------------------------------------------------------------------------------------------
THE UNIVERSAL INSTITUTIONAL FUNDS, INC.:
- --------------------------------------------------------------------------------------------------------
U.S. Real Estate -- Class II $ 847.42 $ 1,866.59 $ 2,919.47 $ 5,710.42
- --------------------------------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------------------------
If you do not surrender your contract at the end
of the applicable time period
------------------------------------------------------------
Portfolio Name 1 year 3 years 5 years 10 years
- ----------------------------------------------------------------------------------------------------------------
EQ ADVISORS TRUST:
- ----------------------------------------------------------------------------------------------------------------
EQ/Money Market $ 411.34 $ 1,265.58 $ 2,164.06 $ 4,622.14
EQ/Putnam Growth & Income Value $ 443.88 $ 1,361.00 $ 2,319.05 $ 4,908.84
EQ/Putnam Voyager $ 452.28 $ 1,385.52 $ 2,358.71 $ 4,981.31
EQ/Small Company Index $ 433.38 $ 1,330.29 $ 2,269.28 $ 4,817.39
EQ/Technology $ 474.33 $ 1,449.68 $ 2,462.14 $ 5,168.63
- ----------------------------------------------------------------------------------------------------------------
BARR ROSENBERG VARIABLE INSURANCE TRUST:
- ----------------------------------------------------------------------------------------------------------------
Laudus Rosenberg VIT Value Long/Short Equity $ 1,136.77 $ 3,245.22 $ 5,152.19 $ 9,168.21
- ----------------------------------------------------------------------------------------------------------------
THE UNIVERSAL INSTITUTIONAL FUNDS, INC.:
- ----------------------------------------------------------------------------------------------------------------
U.S. Real Estate -- Class II $ 497.42 $ 1,516.59 $ 2,569.47 $ 5,360.42
- ----------------------------------------------------------------------------------------------------------------
16 Fee table
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 periods shown for each of the
variable investment options available as of December 31, 2003.
Fee table 17
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 initial contribution of $10,000 for you
to purchase a contract. You may make additional contributions of: (i) at least
$500 each for NQ, QP and Rollover TSA contracts; (ii) $50 each for Rollover IRA
and Roth conversion IRA contracts; and (iii) $1,000 for Inherited IRA
contracts, subject to limitations noted below. The following table summarizes
our rules regarding contributions to your contract. In some states, our rules
may vary. All ages in the table refer to the age of the annuitant named in the
contract.
We may refuse to accept any contribution if the sum of all contributions under
all Equitable Accumulator(R) series contracts with the same owner or annuitant
would then total more than $1,500,000 ($500,000 for owners or annuitants who
are age 81 and older at contract issue). We reserve the right to limit
aggregate contributions made after the first contract year to 150% of
first-year contributions. We may also refuse to accept any contribution if the
sum of all contributions under all Equitable Life annuity accumulation
contracts with the same owner or annuitant would then total more than
$2,500,000. We may accept less than the minimum initial contribution under a
contract if an aggregate amount of contracts purchased at the same time by an
individual (including spouse) meets the minimum.
- --------------------------------------------------------------------------------
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 Limitations on
Contract type issue ages Source of contributions contributions+
- ------------------------------------------------------------------------------------------------------------------------------------
NQ 0 through 85 o After-tax money. o No additional contributions after
attainment of age 87.*
o Paid to us by check or transfer of contract value
in a tax-deferred exchange under Section 1035
of the Internal Revenue Code.
- ------------------------------------------------------------------------------------------------------------------------------------
Rollover IRA 20 through 85 o Eligible rollover distributions from TSA contracts o No rollover or direct transfer
or other 403(b) arrangements, qualified plans, contributions after attainment of age 87.*
and governmental employer 457(b) plans.
o Contributions after age 70-1/2 must be
o Rollovers from another traditional individual net of required minimum distributions.
retirement arrangement.
o Although we accept regular IRA
o Direct custodian-to-custodian transfers from contributions (limited to $3,000 for 2004
another traditional individual retirement and $4,000 for 2005), under the Rollover
arrangement. IRA contracts, we intend that this
contract be used primarily for rollover
o Regular IRA contributions. and direct transfer contributions.
o Additional "catch-up" contributions. o Additional catch-up contributions of up
to $500 can be made for the calendar year
2004 or 2005 where the owner is at least
age 50 but under age 70-1/2 at any time
during the calendar year for which the
contribution is made.
- ------------------------------------------------------------------------------------------------------------------------------------
18 Contract features and benefits
- ------------------------------------------------------------------------------------------------------------------------------------
Available for
annuitant Limitations on
Contract type issue ages Source of contributions contributions+
- ------------------------------------------------------------------------------------------------------------------------------------
Roth Conversion 20 through 85 o Rollovers from another Roth IRA. o No additional rollover or direct transfer
IRA contribution after attainment of age 87.*
o Conversion rollovers from a traditional IRA.
o Conversion rollovers after age 70-1/2 must be
o Direct transfers from another Roth IRA. net of required minimum distributions for the
traditional IRA you are rolling over.
o Regular Roth IRA contributions.
o You cannot roll over funds from a traditional
o Additional "catch-up" contributions. IRA if your adjusted gross income is $100,000
or more.
o Although we accept regular Roth IRA contribu-
tions (limited to $3,000 for 2004 and $4,000
2005) under the Roth IRA contracts, we intend
that this contract be used primarily for
rollover and direct transfer contributions.
o Additional catch-up contributions of up to
$500 can be made for the calendar year 2004
or 2005 where the owner is at least age 50 at
any time during the calendar year for which
the contribution is made.
- ------------------------------------------------------------------------------------------------------------------------------------
Inherited IRA 0 through 70 o (If contract is traditional IRA) Direct o Any additional contributions must be from
Beneficiary Con- custodian-to-custodian transfers of your same type of IRA of same deceased owner.
tinuation Contract interest as death beneficiary of the deceased
(traditional IRA or owner's traditional individual retirement
Roth IRA) arrangement.
o (If contract is Roth IRA) Direct custodian-to-
custodian transfers of your interest as death
beneficiary of the deceased owner's Roth IRA.
- ------------------------------------------------------------------------------------------------------------------------------------
Rollover TSA 20 through 85 o Direct transfers of pre-tax funds from another o No additional rollover or direct transfer
contract or arrangement under Section 403(b) contributions after attainment of age 87.*
of the Internal Revenue Code, complying with
IRS Revenue Ruling 90-24. o Rollover or direct transfer contributions
after age 70-1/2 must be net of any required
o Eligible rollover distributions of pre-tax minimum distributions.
funds from other 403(b) plans.
o We do not accept employer-remitted
o Subsequent contributions may also be rollovers contributions.
from qualified plans, governmental employer
457(b) plans and traditional IRAs.
- ------------------------------------------------------------------------------------------------------------------------------------
Contract features and benefits 19
- ------------------------------------------------------------------------------------------------------------------------------------
Available for
annuitant Limitations on
Contract type issue ages Source of contributions contributions+
- ------------------------------------------------------------------------------------------------------------------------------------
QP 20 through 75 o Only transfer contributions from an existing o We do not accept regular ongoing payroll
defined contribution qualified plan trust. contributions.
o The plan must be qualified under Section 401(a) o Only one additional transfer contribution may
of the Internal Revenue Code. be made during a contract year.
o For 401(k) plans, transferred contributions may o No additional transfer contributions after
only include employee pre-tax contributions. attainment of age 76 or, if later, the first
contract anniversary.
o A Separate QP contract must be established for
each plan participant.
o We do not accept employer-remitted
contributions.
o We do not accept contributions from defined
benefit plans.
Please refer to Appendix II at the end of this Prospectus for a discussion of purchase considerations of QP contracts.
- ------------------------------------------------------------------------------------------------------------------------------------
+ If you purchase Guaranteed principal benefit option 2, no contributions are
permitted after the six month period beginning on the contract date.
* For Pennsylvania contracts, please see Appendix VII later in this
Prospectus for information on state variations.
See "Tax information" later in this Prospectus and in the SAI for a more
detailed discussion of sources of contributions and certain contribution
limitations. For information on when contributions are credited under your
contract see "Dates and prices at which contract events occur" in "More
information" later in this Prospectus.
20 Contract features and benefits
OWNER AND ANNUITANT REQUIREMENTS
Under NQ contracts, the annuitant can be different from 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. In general, we
will not permit a contract to be owned by a minor unless it is pursuant to the
Uniform Gifts to Minors Act or the Uniform Transfers to Minors Act in your
state. If the Spousal protection feature is elected, the spouses must be joint
owners, one of the spouses must be the annuitant and both must be named as the
only primary beneficiaries.
Under all IRA and Rollover TSA contracts, the owner and annuitant must be the
same person. In some cases, an IRA contract may be held in a custodial
individual retirement account for the benefit of the individual annuitant. This
option may not be available under your contract.
Under QP contracts, the owner must be the trustee of the qualified plan and the
annuitant must be the plan participant/employee. See Appendix II at the end of
this Prospectus for more information on QP contracts.
- --------------------------------------------------------------------------------
A "participant" is an individual who is currently, or was formerly,
participating in an eligible employer's qualified plan or TSA plan.
- --------------------------------------------------------------------------------
HOW YOU CAN MAKE YOUR CONTRIBUTIONS
Except as noted below, contributions must be 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.
For your convenience, we will accept initial and additional contributions by
wire transmittal from certain broker-dealers who have agreements with us for
this purpose, including circumstances under which such contributions are
considered received by us when your order is taken by such broker-dealer.
Additional contributions may also be made under our automatic investment
program. These methods of payment, are 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 payments. 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.
- --------------------------------------------------------------------------------
Our "business day" is generally any day the New York Stock Exchange is open for
trading and generally ends at 4:00 p.m. Eastern Time. A business day does not
include a 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, the fixed maturity options and the account for special dollar
cost averaging.
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/Money Market variable investment
option. Listed below are the currently available portfolios, their investment
objectives and their advisers. See "Inherited IRA beneficiary continuation
contract" later in this section for Inherited IRA owner and annuitant
requirements.
- --------------------------------------------------------------------------------
You can choose from among the variable investment options, the guaranteed
interest option, the fixed maturity options and the account for special dollar
cost averaging.
- --------------------------------------------------------------------------------
Contract features and benefits 21
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 the Accumulator(R)
Elite(SM) 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.
Equitable Life serves as the investment manager of the Portfolios of the EQ
Advisors Trust and the AXA Premier VIP Trust. 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. The
advisers for these Portfolios, listed in the chart below, are those who make the
investment decisions for each Portfolio. The chart also indicates the investment
manager for each of the other Portfolios.
- ------------------------------------------------------------------------------------------------------------------------------------
AXA Premier VIP Trust
Portfolio Name Objective Adviser(s)
- ------------------------------------------------------------------------------------------------------------------------------------
AXA AGGRESSIVE ALLOCATION Seeks long-term capital appreciation. o Equitable Life
- ------------------------------------------------------------------------------------------------------------------------------------
AXA CONSERVATIVE ALLOCATION Seeks a high level of current income. o Equitable Life
- ------------------------------------------------------------------------------------------------------------------------------------
AXA CONSERVATIVE-PLUS Seeks current income and growth of capital, with a o Equitable Life
ALLOCATION greater emphasis on current income.
- ------------------------------------------------------------------------------------------------------------------------------------
AXA MODERATE ALLOCATION Seeks long-term capital appreciation and current income. o Equitable Life
- ------------------------------------------------------------------------------------------------------------------------------------
AXA MODERATE-PLUS Seeks long-term capital appreciation and current income, o Equitable Life
ALLOCATION with a greater emphasis on capital appreciation.
- ------------------------------------------------------------------------------------------------------------------------------------
AXA PREMIER VIP AGGRESSIVE Seeks long-term growth of capital. o Alliance Capital Management L.P.
EQUITY o MFS Investment Management
o Marsico Capital Management, LLC
o Provident Investment Counsel, Inc.
- ------------------------------------------------------------------------------------------------------------------------------------
AXA PREMIER VIP CORE BOND Seeks a balance of high current income and capital o BlackRock Advisors, Inc.
appreciation, consistent with a prudent level of risk. o Pacific Investment Management
Company LLC
- ------------------------------------------------------------------------------------------------------------------------------------
AXA PREMIER VIP HEALTH CARE Seeks long-term growth of capital. o A I M Capital Management, Inc.
o RCM Capital Management LLC
o Wellington Management Company, LLP
- ------------------------------------------------------------------------------------------------------------------------------------
AXA PREMIER VIP HIGH YIELD Seeks high total return through a combination of current o Alliance Capital Management L.P.
income and capital appreciation. o Pacific Investment Management
Company LLC
- ------------------------------------------------------------------------------------------------------------------------------------
AXA PREMIER VIP Seeks long-term growth of capital. o Alliance Capital Management L.P., through
INTERNATIONAL EQUITY Bernstein Investment Research and Manage-
ment Unit
o Bank of Ireland Asset Management
(U.S.) Limited
o Marsico Capital Management, LLC
- ------------------------------------------------------------------------------------------------------------------------------------
AXA PREMIER VIP LARGE CAP Seeks long-term growth of capital. o Alliance Capital Management L.P., through
CORE EQUITY Bernstein Investment Research and Manage-
ment Unit
o Janus Capital Management LLC
o Thornburg Investment Management, Inc.
- ------------------------------------------------------------------------------------------------------------------------------------
22 Contract features and benefits
Portfolios of the Trusts (continued)
- ------------------------------------------------------------------------------------------------------------------------------------
AXA Premier VIP Trust
Portfolio Name Objective Adviser(s)
- ------------------------------------------------------------------------------------------------------------------------------------
AXA PREMIER VIP LARGE CAP Seeks long-term growth of capital. o Alliance Capital Management L.P.
GROWTH o RCM Capital Management LLC
o TCW Investment Management Company
- ------------------------------------------------------------------------------------------------------------------------------------
AXA PREMIER VIP LARGE CAP Seeks long-term growth of capital. o Alliance Capital Management L.P.
VALUE o Institutional Capital Corporation
o MFS Investment Management
- ------------------------------------------------------------------------------------------------------------------------------------
AXA PREMIER VIP SMALL/MID Seeks long-term growth of capital. o Alliance Capital Management L.P.
CAP GROWTH o Franklin Advisers, Inc.
o Provident Investment Counsel, Inc.
- ------------------------------------------------------------------------------------------------------------------------------------
AXA PREMIER VIP SMALL/MID Seeks long-term growth of capital. o AXA Rosenberg Investment Management LLC
CAP VALUE o TCW Investment Management Company
o Wellington Management Company, LLP
- ------------------------------------------------------------------------------------------------------------------------------------
AXA PREMIER VIP TECHNOLOGY Seeks long-term growth of capital. o Firsthand Capital Management, Inc.
o RCM Capital Management LLC
o Wellington Management Company, LLP
- ------------------------------------------------------------------------------------------------------------------------------------
EQ Advisors Trust
Portfolio Name Objective Adviser(s)
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/ALLIANCE COMMON STOCK Seeks to achieve long-term growth of capital. o Alliance Capital Management L.P.
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/ALLIANCE GROWTH AND Seeks to provide a high total return. o Alliance Capital Management L.P.
INCOME
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/ALLIANCE INTERMEDIATE Seeks to achieve high current income consistent with o Alliance Capital Management L.P.
GOVERNMENT SECURITIES relative stability of principal.
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/ALLIANCE INTERNATIONAL Seeks to achieve long-term growth of capital. o Alliance Capital Management L.P.
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/ALLIANCE PREMIER GROWTH Seeks to achieve long-term growth of capital. o Alliance Capital Management L.P.
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/ALLIANCE QUALITY BOND Seeks to achieve high current income consistent with o Alliance Capital Management L.P.
moderate risk to capital.
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/ALLIANCE SMALL CAP Seeks to achieve long-term growth of capital. o Alliance Capital Management L.P.
GROWTH
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/BERNSTEIN DIVERSIFIED VALUE Seeks capital appreciation. o Alliance Capital Management L.P.,
through its Bernstein Investment Research
and Management Unit
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/CALVERT SOCIALLY Seeks long-term capital appreciation. o Calvert Asset Management Company, Inc.
RESPONSIBLE and Brown Capital Management, Inc.
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/CAPITAL GUARDIAN To achieve long-term growth of capital. o Capital Guardian Trust Company
INTERNATIONAL
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/CAPITAL GUARDIAN Seeks to achieve long-term growth of capital. o Capital Guardian Trust Company
RESEARCH
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/CAPITAL GUARDIAN U.S. Seeks to achieve long-term growth of capital. o Capital Guardian Trust Company
EQUITY
- ------------------------------------------------------------------------------------------------------------------------------------
Contract features and benefits 23
Portfolios of the Trusts (continued)
- ------------------------------------------------------------------------------------------------------------------------------------
EQ Advisors Trust
Portfolio Name Objective Adviser(s)
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/EMERGING MARKETS EQUITY Seeks long-term capital appreciation. o Morgan Stanley Investment
Management, Inc.
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/EQUITY 500 INDEX Seeks a total return before expenses that approximates o 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. o Evergreen Investment Management
Company, LLC
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/FI MID CAP Seeks long-term growth of capital. o Fidelity Management & Research Company
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/FI SMALL/MID CAP VALUE Seeks long-term capital appreciation. o Fidelity Management & Research Company
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/J.P. MORGAN CORE BOND Seeks to provide a high total return consistent with mod- o J.P. Morgan Investment Management Inc.
erate risk to capital and maintenance of liquidity.
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/JANUS LARGE CAP GROWTH Seeks long-term growth of capital. o Janus Capital Management LLC
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/LAZARD SMALL CAP VALUE Seeks capital appreciation. o Lazard Asset Management, LLC
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/MARSICO FOCUS Seeks long-term growth of capital. o Marsico Capital Management, LLC
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/MERCURY BASIC VALUE Seeks capital appreciation and secondarily, income. o Mercury Advisors
EQUITY
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/MERCURY INTERNATIONAL Seeks capital appreciation. o Merrill Lynch Investment Managers
VALUE International Limited
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/MFS EMERGING GROWTH Seeks to provide long-term capital growth. o MFS Investment Management
COMPANIES
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/MFS INVESTORS TRUST Seeks long-term growth of capital with secondary objec- o MFS Investment Management
tive to seek reasonable current income.
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/MONEY MARKET Seeks to obtain a high level of current income, preserve o Alliance Capital Management L.P.
its assets and maintain liquidity.
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/PUTNAM GROWTH & INCOME Seeks capital growth. Current income is a secondary o Putnam Investment Management, LLC
VALUE objective.
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/PUTNAM VOYAGER Seeks long-term growth of capital and any increased o Putnam Investment Management, LLC
income that results from this growth.
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/SMALL COMPANY INDEX Seeks to replicate as closely as possible (before the o Alliance Capital Management L.P.
deduction of portfolio expenses) the total return of the
Russell 2000 Index.
- ------------------------------------------------------------------------------------------------------------------------------------
EQ/TECHNOLOGY Seeks to achieve long-term growth of capital. o Firsthand Capital Management, Inc.
o RCM Capital Management LLC
o Wellington Management Company, LLP
- ------------------------------------------------------------------------------------------------------------------------------------
24 Contract features and benefits
Portfolios of the Trusts (continued)
- ------------------------------------------------------------------------------------------------------------------------------------
Barr Rosenberg Variable
Insurance Trust
Portfolio Name Objective Investment Manager
- ------------------------------------------------------------------------------------------------------------------------------------
LAUDUS ROSENBERG VIT VALUE Seeks to increase the value of your investment in bull o Charles Schwab Investment
LONG/SHORT EQUITY markets and bear markets through strategies that are Management, Inc.
designed to have limited exposure to general equity o AXA Rosenberg Investment
market risk. Management LLC
- ------------------------------------------------------------------------------------------------------------------------------------
The Universal Institutional
Funds, Inc.
Portfolio Name Objective Investment Manager
- ------------------------------------------------------------------------------------------------------------------------------------
U.S. REAL ESTATE -- Class II(1) Seeks to provide above average current income and long- o Van Kampen(2)
term capital appreciation by investing primarily in equity
securities of companies in the U.S. real estate industry,
including real estate investment trusts.
- ------------------------------------------------------------------------------------------------------------------------------------
(1) "Class II" shares are defined in the current underlying Trust prospectus.
(2) Van Kampen is the name under which Morgan Stanley Investment Management
Inc. does business in certain situations.
You should consider the investment objectives, risks and charges and expenses
of the Portfolios carefully before investing. The prospectuses for the Trusts
contain this and other important information about the Portfolios. The
prospectuses should be read carefully before investing. In order to obtain
copies of Trust prospectuses that do not accompany this Prospectus, you may
call one of our customer service representatives at 1-800-789-7771.
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 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. We reserve the right to change these procedures.
All interest rates are effective annual rates, but before deduction of annual
administrative charges or any withdrawal charges.
The minimum yearly rate for 2004 is equal to the lifetime minimum rate of your
contract. Depending on the state where your contract is issued, your lifetime
minimum rate is either 1.5% or 3.00%. The data page for your contract shows the
lifetime minimum rate. The annual minimum rate will never be less than the
lifetime minimum rate. Check with your financial professional as to which rate
applies in your state. Current interest rates will never be less than the
yearly guaranteed interest rate.
Generally, contributions and transfers into and out of the guaranteed interest
option are limited. See "Transferring your money among the investment options"
later in this Prospectus for restrictions on transfer from the guaranteed
interest option.
FIXED MATURITY OPTIONS
We offer fixed maturity options with maturity dates ranging from one to ten
years. We will not accept allocations to a fixed maturity option if on the date
the contribution or transfer is to be applied the rate to maturity is 3%. This
means that at points in time there may be no fixed maturity options available.
You can allocate your contributions to one or more of these fixed maturity
options, however, you may not have more than 12 different maturities running
during any contract year. These amounts become part of a non-unitized separate
account. 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 all states. Check with your financial professional
or see Appendix VII later in this Prospectus to see if fixed maturity options
are available in your state.
- --------------------------------------------------------------------------------
Fixed maturity options range from one to ten years to maturity.
- --------------------------------------------------------------------------------
Under the Special 10 year fixed maturity option (which is available only under
GPB Option 2), additional contributions will have the same maturity date as
your initial contribution (see "The Guaranteed Principal Benefits," below). The
rate to maturity you will receive for each additional contribution is the rate
to maturity in effect for new contributions allocated to that fixed maturity
option on the date we apply your contribution.
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 amounts 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 offer fixed maturity options with
maturity dates ranging from one to ten years. Not all of these fixed maturity
options will be available for annuitant ages 76 and older. See "Allocating your
contributions" below.
Each new contribution is applied to a new fixed maturity option. When you apply
for an Accumulator(R) Elite(SM) contract, a 60-day rate lock-in will apply from
the date the application is signed. Any contributions received and designated
for a fixed maturity option during this period will receive the then current
fixed maturity option rate or the rate that was in effect on the date that the
application was signed, whichever is greater. There is no rate lock available
for subsequent contributions to the contract after 60 days, transfers from the
variable investment options or the guaranteed interest option into a fixed
maturity option or transfers from one fixed maturity option to another.
YOUR CHOICES AT THE MATURITY DATE. We will notify you between 15 and 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 below in "Allocating your
contributions," would apply:
(a) transfer the maturity value into another available fixed maturity option,
any of the variable investment options or the guaranteed interest option;
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
shortest available maturity option beginning on that date. As of February 13,
2004 the next available maturity date was February 13, 2012. If no fixed
maturity options are available we will transfer your maturity value to the
EQ/Money Market Option.
MARKET VALUE ADJUSTMENT. If you make any withdrawals (including transfers,
surrender 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 in effect at that time for new fixed maturity
options (adjusted to reflect a similar maturity date), and
26 Contract features and benefits
(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 III at the end of this Prospectus provides an example
of how the market value adjustment is calculated.
ACCOUNT FOR SPECIAL DOLLAR COST AVERAGING
The account for special dollar cost averaging is part of our general account.
We pay interest at guaranteed rates in this account. We will credit interest to
the amounts that you have in the account for special dollar cost averaging
every day. We set the interest rates periodically, according to procedures that
we have. We reserve the right to change these procedures.
We guarantee to pay our current interest rate that is in effect on the date
that your contribution is allocated to this account. Your guaranteed interest
rate for the time period you select will be shown in your contract for an
initial contribution. The rate will never be less than the lifetime minimum
rate for the guaranteed interest option. See "Allocating your contributions"
below for rules and restrictions that apply to the special dollar cost
averaging program.
ALLOCATING YOUR CONTRIBUTIONS
You may choose from among three ways to allocate your contributions under your
contract: self-directed, the guaranteed principal benefits or dollar cost
averaging.
SELF-DIRECTED ALLOCATION
You may allocate your contributions to one or more, or all, of the variable
investment options, the guaranteed interest option and fixed maturity options.
Allocations must be in whole percentages and you may change your allocations at
any time. No more than 25% of any contribution may be allocated to the
guaranteed interest option. The total of your allocations into all available
investment options must equal 100%. If the annuitant is age 76-80, you may
allocate contributions to fixed maturity options with maturities of seven years
or less. If the annuitant is age 81 or older, you may allocate contributions to
fixed maturity options with maturities of five years or less. Also, you may not
allocate amounts to fixed maturity options with maturity dates that are later
than the date annuity payments are to begin.
THE GUARANTEED PRINCIPAL BENEFITS
Subject to state availability (see Appendix VII later in this Prospectus for
more information on state availability of these benefits), we offer a
guaranteed principal benefit ("GPB") with two options. You may only elect one
of the GPBs. Neither GPB is available under Inherited IRA contracts. We will
not offer either GPB when the rate to maturity for the applicable fixed
maturity option is 3%. If you elect either GPB, you may not elect the
Guaranteed minimum income benefit, the systematic withdrawals option or the
substantially equal withdrawals option. Both GPB options allow you to allocate
a portion of your contribution or contributions to the variable investment
options, while ensuring that your account value will at least equal your
contributions adjusted for withdrawals and transfers on a specified date. GPB
Option 2 generally provides you with the ability to allocate more of your
contributions to the variable investment options than could be allocated using
GPB Option 1.
You may elect GPB Option 1 only if the annuitant age is 80 or younger when the
contract is issued (after age 75, only the 7-year fixed maturity option is
available). You may elect GPB Option 2 only if the annuitant is age 75 or
younger when the contract is issued. If you are purchasing an IRA, QP or
Rollover TSA contract, before you either purchase GPB Option 2 or elect GPB
Option 1 with 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, guaranteed interest option and permissible funds outside
this contract are sufficient to meet your required minimum distributions. See
"Tax information" later in this Prospectus and in the SAI.
GUARANTEED PRINCIPAL BENEFIT OPTION 1. Under GPB Option 1, you select a fixed
maturity option at the time you sign your application. 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 amount
of your contribution allocated to the fixed maturity option will be calculated
based upon the rate to maturity then in effect for the fixed maturity option
you choose. Your contract will contain information on the percentage of your
contribution allocated to the fixed maturity option. If you make any
withdrawals or transfers from the fixed maturity option before the option's
maturity date, the amount in the fixed maturity option will be adjusted and may
no longer grow to equal your initial contribution under GPB Option 1. The
maturity date you select generally may not be later than 10 years, or earlier
than 7 years from your contract date. You may allocate the rest of your initial
contribution to the investment options however you choose (unless you elect a
dollar cost averaging program, in which case the remainder of your initial
contribution must be allocated to the dollar cost averaging program). Upon the
maturity date of the fixed maturity option, you will be provided with the same
notice and the same choices with respect to the maturity value as described
above under "Your choices at the maturity date." There is no charge for GPB
Option 1.
GUARANTEED PRINCIPAL BENEFIT OPTION 2. You may purchase GPB Option 2 at the
time you apply for your contract. IF YOU PURCHASE GPB OPTION 2, YOU MAY NOT
MAKE ADDITIONAL CONTRIBUTIONS TO YOUR CON-
Contract features and benefits 27
TRACT AFTER SIX MONTHS FROM THE CONTRACT ISSUE DATE OR AT ANY EARLIER TIME IF
AT SUCH TIME THE THEN APPLICABLE RATE TO MATURITY ON THE
SPECIAL 10 YEAR FIXED MATURITY OPTION IS 3%. Therefore, any discussion in this
Prospectus that involves any additional contributions after the first six
months will be inapplicable.
We specify the portion of your initial contribution, and any additional
permitted contributions, to be allocated to a Special 10 year fixed maturity
option. Your contract will contain information on the percentage of applicable
contributions allocated to the Special 10 year fixed maturity option. You may
allocate the rest of your contributions among the investment options (other
than the Special 10 year fixed maturity option) however you choose, as
permitted under your contract and other than the Investment simplifier (unless
you elect a dollar cost averaging program, in which case all contributions,
other than amounts allocated to the Special 10 year fixed maturity option, must
be allocated to the dollar cost averaging program). The Special 10 year fixed
maturity option will earn interest at the specified rate to maturity then in
effect.
If on the 10th contract date anniversary, your annuity account value is less
than the amount that is guaranteed under GPB Option 2, we will increase your
annuity account value to be equal to the guaranteed amount under GPB Option 2.
Any such additional amounts added to your annuity account value will be
allocated to the EQ/Money Market investment option. After the maturity date of
the Special 10 year fixed maturity option, the guarantee under GPB Option 2
will terminate. Upon the maturity date of the Special 10 year fixed maturity
option, you will be provided with the same notice and the same choices with
respect to the maturity value as described above under "Your choices at the
maturity date." The guaranteed amount under GPB Option 2 is equal to your
initial contribution adjusted for any additional permitted contributions,
transfers out of the Special 10 year fixed maturity option and withdrawals from
the contract (see "How withdrawals (and transfers out of the Special 10 year
fixed maturity option) affect your Guaranteed income benefit, Guaranteed
minimum death benefit and Guaranteed principal benefit option 2" in "Accessing
your money" later in this Prospectus). Any transfers or withdrawals from the
Special 10 year fixed maturity option will also be subject to a market value
adjustment (see "Market value adjustment" under "Fixed maturity options" above
in this section).
Once you purchase the Guaranteed principal benefit option 2, you may not
voluntarily terminate this benefit. GPB Option 2 will terminate if the contract
terminates before the maturity date of the Special 10 year fixed maturity
option. If the owner and the annuitant are different people and the owner dies
before the maturity date of the Special 10 year fixed maturity option, we will
continue GPB Option 2 only if the contract can continue through the maturity
date of the Special 10 year fixed maturity option. If the contract cannot so
continue, we will terminate GPB Option 2. GPB Option 2 will continue where
there is a successor owner/annuitant. GPB Option 2 will terminate upon the
exercise of the beneficiary continuation option. See "Payment of death benefit"
later in this Prospectus for more information about the continuation of the
contract after the death of the owner and/or the annuitant.
There is a fee associated with GPB Option 2 (see "Charges and expenses" later
in this Prospectus). You should note that the purchase of GPB Option 2 is not
appropriate if you want to make additional contributions to your contract
beyond the first six months after your contract is issued. If you later decide
that you would like to make additional contributions to the Accumulator(R)
Elite(SM) contract, we may permit you to purchase another contract. If we do,
however, you should note that we do not reduce or waive any of the charges on
the new contract, nor do we guarantee that the features available under this
contract will be available under the new contract. This means that you might
end up paying more with respect to certain charges than if you had simply
purchased a single contract (for example, the administrative charge).
The purchase of GPB Option 2 is also not appropriate if you plan on terminating
your contract before the maturity date of the special 10 year fixed maturity
option. In addition, because we prohibit contributions to your contract after
the first six months, certain contract benefits that are dependent upon
contributions or account value will be limited (for example the Guaranteed
death benefits and Protection Plus). You should also note that if you intend to
allocate a large percentage of your contributions to the guaranteed interest
option or other fixed maturity options, the purchase of GPB Option 2 may not be
appropriate because of the guarantees already provided by these options. An
example of the effect of GPB Option 1 and GPB Option 2 on your annuity contract
is included in Appendix VI later in this Prospectus.
DOLLAR COST AVERAGING
We offer a variety of dollar cost averaging programs. You may only participate
in one program at a time. Each program 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 value is low and fewer units if
the unit value is high. Therefore, you may get a lower average cost per unit
over the long term. These plans of investing, however, do not guarantee that
you will earn a profit or be protected against losses. You may not make
transfers to the fixed maturity options.
- --------------------------------------------------------------------------------
Units measure your value in each variable investment option.
- --------------------------------------------------------------------------------
SPECIAL DOLLAR COST AVERAGING PROGRAM. Under the special dollar cost averaging
program, you may choose to allocate all or a portion of any eligible
contribution to the account for special dollar cost averaging. Contributions
into the account for special dollar cost averaging may not be transfers from
other investment options. Your initial allocation to any special dollar cost
averaging program time period must be at least $2,000 and any subsequent
contribution to that same time period must be at least $250. You may only have
one time period in effect at any time and once you select a time period, you
may not change it. In Pennsylvania, we refer to this program as "enhanced rate
dollar cost averaging."
You may have your account value transferred to any of the variable investment
options. We will transfer amounts from the account for special dollar cost
averaging into the variable investment options over
28 Contract features and benefits
an available time period that you select. We offer time periods of 3, 6 or 12
months during which you will receive an enhanced interest rate. We may also
offer other time periods. Your financial professional can provide information
on the time periods and interest rates currently available in your state, or
you may contact our processing office. If the special dollar cost averaging
program is selected at the time of application to purchase the Accumulator(R)
Elite(SM) contract, a 60 day rate lock will apply from the date of application.
Any contribution(s) received during this 60 day period will be credited with
the interest rate offered on the date of application for the remainder of the
time period selected at application. Any contribution(s) received after the 60
day rate lock period has ended will be credited with the then current interest
rate for the remainder of the time period selected at application.
Contribution(s) made to a special dollar cost averaging program selected after
the Accumulator(R) Elite(SM) contract has been issued will be credited with the
then current interest rate on the date the contribution is received by
Equitable for the time period initially selected by you. Once the time period
you selected has run, you may then select another time period for future
contributions. At that time, you may also select a different allocation for
transfers to the variable investment options, or, if you wish, we will continue
to use the selection that you have previously made. Currently, your account
value will be transferred from the account for special dollar cost averaging
into the variable investment options on a monthly basis. We may offer this
program in the future with transfers on a different basis.
We will transfer all amounts out of the account for special dollar cost
averaging by the end of the chosen time period. The transfer date will be the
same day of the month as the contract date, but not later than the 28th day of
the month. For a special dollar cost averaging program selected after
application, the first transfer date and each subsequent transfer date for the
time period selected will be one month from the date the first contribution is
made into the special dollar cost averaging program, but not later than the
28th of the month.
If you choose to allocate only a portion of an eligible contribution to the
account for special dollar cost averaging, the remaining balance of that
contribution will be allocated to the variable investment options, guaranteed
interest option or fixed maturity options according to your instructions.
The only amounts that should be transferred from the account for special dollar
cost averaging are your regularly scheduled transfers to the variable
investment options. No amounts may be transferred from the account for special
dollar cost averaging to the guaranteed interest option or the fixed maturity
options. If you request to transfer or withdraw any other amounts from the
account for special dollar averaging, we will transfer all of the value that
you have remaining in the account for special dollar cost averaging to the
investment options according to the allocation percentages for special dollar
cost averaging we have on file for you. You may ask us to cancel your
participation at any time.
GENERAL DOLLAR COST AVERAGING PROGRAM. If your value in the EQ/Money Market
option is at least $5,000, you may choose, at any time, to have a specified
dollar amount or percentage of your value transferred from that option to the
other variable investment options. You can select to have transfers made on a
monthly, quarterly or annual basis. The transfer date will be the same calendar
day of the month as the contract date, but not later than the 28th day of the
month. You can also specify the number of transfers or instruct us to continue
making the transfers until all amounts in the EQ/Money Market option have been
transferred out. The minimum amount that we will transfer each time is $250.
If, on any transfer date, your value in the EQ/Money Market option is equal to
or less than the amount you have elected to have transferred, the entire amount
will be transferred. The general dollar cost averaging program will then end.
You may change the transfer amount once each contract year or cancel this
program at any time.
INVESTMENT SIMPLIFIER
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. Transfers may be made on a monthly,
quarterly or annual basis. You can specify the number of transfers or instruct
us to continue to make 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. The transfer date will be the same calendar day of the month
as the contract date but not later than the 28th day of the month. The minimum
transfer amount is $50. Unlike the account for special dollar cost averaging,
this option does not offer enhanced rates. Also, this option is subject to the
guaranteed interest option transfer limitations described under "Transferring
your account value" in "Transferring your money among investment options" later
in this Prospectus. While the program is running, any transfer that exceeds
those limitations will cause the program to end for that contract year. You
will be notified. You must send in a request form to resume the program in the
next or subsequent contract years.
If, on any transfer date, your value in the guaranteed interest option is equal
to or less than the amount you have elected to have transferred, the entire
amount will be transferred, and the program will end. You may change the
transfer amount once each contract year or cancel this program at any time.
Interest sweep option. Under this option, you may elect to have monthly
transfers from amounts in the guaranteed interest option into the variable
investment options of your choice. The transfer date will be the last business
day of the month. 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. We will automatically cancel the interest sweep
program if the amount in the guaranteed interest option is less than $7,500 on
the last day of the month for two months in a row. For the interest sweep
option, 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.
----------------------------------
Contract features and benefits 29
You may not participate in any dollar cost averaging program if you are
participating in the rebalancing program. If you elect a GPB, you may also
elect the General dollar cost averaging program. If you elect either of these
programs, everything other than amounts allocated to the fixed maturity option
under the GPB must be allocated to that dollar cost averaging program. You may
still elect the Investment simplifier for amounts transferred from investment
options (other than the fixed maturity option under the GPB you have elected),
and, for GPB Option 1, you may also elect Investment simplifier for subsequent
contributions. See "Transferring your money among investment options" later in
this Prospectus.
YOUR BENEFIT BASE
A benefit base is used to calculate the Guaranteed minimum income benefit and
the death benefits, as described in this section. Your benefit base is not an
account value or a cash value. See also "Our Guaranteed minimum income benefit
option" and "Guaranteed minimum death benefit" below.
STANDARD DEATH BENEFIT. Your benefit base is equal to:
o your initial contribution and any additional contributions to the contract;
less
o a deduction that reflects any withdrawals you make (the amount of the
deduction is described under "How withdrawals (and transfers out of the
Special 10 year fixed maturity option) affect your Guaranteed minimum
income benefit, Guaranteed minimum death benefit and Guaranteed principal
benefit option 2" in "Accessing your money" later in this Prospectus).
6% ROLL UP TO AGE 85 (USED FOR THE GREATER OF THE 6% ROLL UP TO AGE 85 OR THE
ANNUAL RATCHET TO AGE 85 ENHANCED DEATH BENEFIT AND FOR THE GUARANTEED MINIMUM
INCOME BENEFIT). Your benefit base is equal to:
o your initial contribution and any additional contributions to the contract;
plus
o daily interest; less
o a deduction that reflects any withdrawals you make (the amount of the
deduction is described under "How withdrawals (and transfers out of the
Special 10 year fixed maturity option) affect your Guaranteed minimum
income benefit, Guaranteed minimum death benefit and Guaranteed principal
benefit option 2" in "Accessing your money" and the section entitled
"Charges and expenses" later in this Prospectus).
The effective annual interest rate credited to this benefit base is:
o 6% with respect to the variable investment options (other than EQ/Alliance
Intermediate Government Securities and EQ/Money Market) and the account for
special dollar cost averaging; and
o 3% with respect to the EQ/Alliance Intermediate Government Securities and
EQ/Money Market, the fixed maturity options, the Special 10 year fixed
maturity option, the guaranteed interest option and the loan reserve
account under Rollover TSA (if applicable).
No interest is credited to the benefit base after the contract anniversary
following the annuitant's 85th birthday.
ANNUAL RATCHET TO AGE 85 (USED FOR THE ANNUAL RATCHET TO AGE 85 ENHANCED DEATH
BENEFIT, THE GREATER OF THE 6% ROLL UP TO AGE 85 OR THE ANNUAL RATCHET TO AGE
85 ENHANCED DEATH BENEFIT AND FOR THE GUARANTEED MINIMUM INCOME BENEFIT). Your
benefit base is equal to the greater of:
o your initial contribution to the contract (plus any additional
contributions),
or
o your highest account value of any contract anniversary up to the contract
anniversary following the annuitant's 85th birthday plus any contributions
made since the most recent contract anniversary,
each less
o a deduction that reflects any withdrawals you make (the amount of the
deduction is described under "How withdrawals (and transfers out of the
Special 10 year fixed maturity option) affect your Guaranteed minimum
income benefit, Guaranteed minimum death benefit and Guaranteed principal
benefit option 2" in "Accessing your money" later in this Prospectus).
GREATER OF THE 6% ROLL UP TO AGE 85 OR THE ANNUAL RATCHET TO AGE 85 ENHANCED
DEATH BENEFIT AND FOR THE GUARANTEED MINIMUM INCOME BENEFIT. Your benefit base
is equal to the greater of the benefit base computed for the 6% Roll up to age
85 or the benefit base computed for Annual Ratchet to age 85, as described
immediately above, on each contract anniversary. For the Guaranteed minimum
income benefit, the benefit base is reduced by any applicable withdrawal charge
remaining when the option is exercised.
ANNUITY PURCHASE FACTORS
Annuity purchase factors are the factors applied to determine your periodic
payments under the Guaranteed minimum income benefit and annuity payout
options. The Guaranteed minimum income benefit is discussed in "Our Guaranteed
minimum income benefit option" below and annuity payout options are discussed
in "Accessing your money" later in this Prospectus. The guaranteed annuity
purchase factors are those factors specified in your contract. The current
annuity purchase factors are those factors that are in effect at any given
time. Annuity purchase factors are based on interest rates, mortality tables,
frequency of payments, the form of annuity benefit, and the annuitant's (and
any joint annuitant's) age and sex in certain instances.
OUR GUARANTEED MINIMUM INCOME BENEFIT OPTION
The Guaranteed minimum income benefit is available if the annuitant is age 20
through 75 at the time the contract is issued. There is an additional charge
for the Guaranteed minimum income benefit which is described under "Guaranteed
minimum income benefit charge" in "Charges and expenses" later in this
Prospectus. Once you purchase the Guaranteed minimum income benefit, you may
not voluntarily terminate this benefit.
If you are purchasing this contract as an Inherited IRA, or if you elect a GPB,
the Guaranteed minimum income benefit is not available. If you are purchasing
this contract to fund a Charitable Remainder Trust, the Guaranteed minimum
income benefit is not available except for certain split-funded Charitable
Remainder Trusts. If the annuitant was
30 Contract features and benefits
older than age 60 at the time an IRA, QP or Rollover TSA contract was issued,
the Guaranteed minimum income benefit may not be an appropriate feature because
the minimum distributions required by tax law generally must begin before the
Guaranteed minimum income benefit can be exercised.
The Guaranteed minimum income benefit guarantees you a minimum amount of fixed
income under your choice of a life annuity fixed payout option or a life with a
period certain payout option. You choose which of these payout options you want
and whether you want the option to be paid on a single or joint life basis at
the time you exercise your Guaranteed minimum income benefit. The maximum
period certain available under the life with a period certain payout option is
10 years. This period may be shorter, depending on the annuitant's age as
follows:
- -----------------------------------------------
Level payments
- -----------------------------------------------
Period certain years
Annuitant's age at ------------------------
exercise IRAs NQ
- -----------------------------------------------
75 and younger 10 10
76 9 10
77 8 10
78 7 10
79 7 10
80 7 10
81 7 9
82 7 8
83 7 7
84 6 6
85 5 5
- -----------------------------------------------
We may also make other forms of payout options available. For a description of
payout options, see "Your annuity payout options" in "Accessing your money"
later in this Prospectus.
- --------------------------------------------------------------------------------
The Guaranteed minimum income benefit should be regarded as a safety net only.
It provides income protection if you elect an income payout while the annuitant
is alive.
- --------------------------------------------------------------------------------
When you exercise the Guaranteed minimum income benefit, the annual lifetime
income that you will receive will be the greater of (i) your Guaranteed minimum
income benefit which is calculated by applying your Guaranteed minimum income
benefit base, less any outstanding loans plus accrued interest (applies to
Rollover TSA only), at guaranteed annuity purchase factors, or (ii) the income
provided by applying your actual account value at our then current annuity
purchase factors. The benefit base is applied only to the guaranteed annuity
purchase factors under the Guaranteed minimum income benefit in your contract
and not to any other guaranteed or current annuity purchase rates. The amount
of income you actually receive will be determined when we receive your request
to exercise the benefit.
When you elect to receive annual lifetime income, your contract will terminate
and you will receive a new contract for the annuity payout option. For a
discussion of when your payments will begin and end, see "Exercise of
Guaranteed minimum income benefit" below.
Before you elect the Guaranteed minimum income benefit, you should consider the
fact that the it provides a form of insurance and is based on conservative
actuarial factors. The guaranteed annuity purchase factors we use to determine
your payout annuity benefit under the Guaranteed minimum income benefit are
more conservative than the guaranteed annuity purchase factors we use for our
standard payout annuity options. This means that, assuming the same amount is
applied to purchase the benefit and that we use guaranteed annuity purchase
factors to compute the benefit, each periodic payment under the Guaranteed
minimum income benefit payout annuity will be smaller than each periodic
payment under our standard payout annuity options. Therefore, even if your
account value is less than your benefit base, you may generate more income by
applying your account value to current annuity purchase factors. We will make
this comparison for you when the need arises.
ILLUSTRATIONS OF GUARANTEED MINIMUM INCOME BENEFIT. Assuming the 6% Roll up to
age 85 benefit base, the table below illustrates the guaranteed minimum income
benefit amounts per $100,000 of initial contribution, for a male annuitant age
60 (at issue) on the contract date anniversaries indicated, who has elected the
life annuity fixed payout option, using the guaranteed annuity purchase factors
as of the date of this Prospectus, assuming no additional contributions,
withdrawals or loans under Rollover TSA contracts, and assuming there were no
allocations to EQ/Alliance Intermediate Government Securities, EQ/Money Market,
the guaranteed interest option, the fixed maturity options (including the
Special 10 year fixed maturity option) or the loan reserve account under
rollover TSA contracts.
- -------------------------------------------------------
Guaranteed minimum income
Contract date benefit -- annual income
anniversary at exercise payable for life
- -------------------------------------------------------
10 $11,891
15 $18,597
- -------------------------------------------------------
EXERCISE OF GUARANTEED MINIMUM INCOME BENEFIT. On each contract date
anniversary that you are eligible to exercise the Guaranteed minimum income
benefit, we will send you an eligibility notice illustrating how much income
could be provided as of the contract date anniversary. You must notify us
within 30 days following the contract date anniversary if you want to exercise
the Guaranteed minimum income benefit. You must return your contract to us,
along with all required information, in order to exercise this benefit. You
will begin receiving annual payments one year after the annuity payout contract
is issued. You may choose to take a withdrawal prior to exercising the
Guaranteed minimum income benefit, which will reduce your payments. You may not
partially exercise this benefit. See "Accessing your money" under "Withdrawing
your account value" later in this Prospectus. Payments end with the last
payment before the annuitant's (or joint annuitant's, if applicable) death, or
if later, the end of the period certain (where the payout option chosen
includes a period certain).
EXERCISE RULES. You will be eligible to exercise the Guaranteed minimum income
benefit as follows:
o If the annuitant was at least age 20 and no older than age 44 when the
contract was issued, you are eligible to exercise the Guaranteed minimum
income benefit within 30 days following each contract date anniversary
beginning with the 15th contract date anniversary.
Contract features and benefits 31
o If the annuitant was at least age 45 and no older than age 49 when the
contract was issued, you are eligible to exercise the Guaranteed minimum
income benefit within 30 days following each contract date anniversary
after the annuitant is age 60.
o If the annuitant was at least age 50 and no older than age 75 when the
contract was issued, you are eligible to exercise the Guaranteed minimum
income benefit within 30 days following each contract date anniversary
beginning with the 10th contract date anniversary.
Please note:
(i) the latest date you may exercise the Guaranteed minimum income benefit is
within 30 days following the contract date anniversary following the
annuitant's 85th birthday;
(ii) if the annuitant was age 75 when the contract was issued, the only time
you may exercise the Guaranteed minimum income benefit is within 30 days
following the first contract date anniversary that it becomes available;
(iii) for QP and Rollover TSA contracts, if you are eligible to exercise your
Guaranteed minimum income benefit, we will first roll over amounts in such
contract to a Rollover IRA contract. You will be the owner of the Rollover
IRA contract; and
(iv) a successor owner/annuitant may only continue the Guaranteed minimum
income benefit if the contract is not past the last date on which the
original annuitant could have exercised the benefit. In addition, the
successor owner/annuitant must be eligible to continue the benefit and to
exercise the benefit under the applicable exercise rule (described in the
above bullets) using the following additional rules. The successor
owner/annuitant's age on the date of the annuitant's death replaces the
annuitant's age at issue for purposes of determining the availability of
the benefit and which of the exercise rules applies. The original contract
issue date will continue to apply for purposes of the exercise rules.
Please see both "Termination of your contract" in "Determining your contract
value" and "How withdrawals (and transfers out of the Special 10 year fixed
maturity option) affect your Guaranteed minimum income benefit, Guaranteed
minimum death benefit and Guaranteed principal benefit option 2" in "Accessing
your money" and the section entitled "Charges and expenses" later in this
Prospectus for more information on these guaranteed benefits.
GUARANTEED MINIMUM DEATH BENEFIT
Your contract provides a death benefit. If you do not elect one of the enhanced
death benefits 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 standard death benefit, whichever provides the highest
amount. The standard death benefit is equal to your total contributions,
adjusted for any withdrawals (and any associated withdrawal charges) and any
taxes that apply. Once your contract is issued, you may not change or
voluntarily terminate your death benefit.
If you elect one of the enhanced death benefits, 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 your elected enhanced
death benefit on the date of the annuitant's death (adjusted for any subsequent
withdrawals, withdrawal charges and taxes that apply), whichever provides the
highest amount. If you elect the Spousal protection option, the guaranteed
minimum death benefit is based on the age of the older spouse, who may or may
not be the annuitant, for the life of the contract. See "Spousal protection" in
"Payment of death benefit" later in this Prospectus for more information.
OPTIONAL ENHANCED DEATH BENEFITS APPLICABLE FOR ANNUITANT AGES 0 THROUGH 75 AT
ISSUE OF NQ CONTRACTS; 20 THROUGH 75 AT ISSUE OF ROLLOVER IRA, ROTH CONVERSION
IRA AND ROLLOVER TSA CONTRACTS; 0 THROUGH 70 AT ISSUE OF INHERITED IRA
CONTRACTS; AND 20 THROUGH 75 AT ISSUE OF QP CONTRACTS.
Subject to state availability (see Appendix VII later in this Prospectus for
state availability of these benefits), you may elect one of the following
enhanced death benefits:
ANNUAL RATCHET TO AGE 85.
THE GREATER OF THE 6% ROLL UP TO AGE 85 OR THE ANNUAL RATCHET TO AGE 85.
Each enhanced death benefit is equal to its corresponding benefit base
described earlier in "Your benefit base." Once you have made your enhanced
death benefit election, you may not change it.
The standard death benefit is the only death benefit available for annuitants
ages 76 through 85 at issue of NQ, Rollover IRA, Roth Conversion IRA and
Rollover TSA contracts.
----------------------------------
Please see both "Termination of your contract" in "Determining your contract
value" and "How withdrawals (and transfers out of the Special 10 year fixed
maturity option) affect your Guaranteed minimum income benefit, Guaranteed
minimum death benefit and Guaranteed principal benefit option 2" in "Accessing
your money" and the section entitled "Charges and expenses" later in this
Prospectus for more information on these guaranteed benefits.
See Appendix IV later in this Prospectus for an example of how we calculate an
enhanced death benefit.
Protection Plus
Subject to state and contract availability (see Appendix VII later in this
Prospectus for state availability of these benefits), if you are purchasing a
contract, under which the Protection Plus feature is available, you may elect
the Protection Plus death benefit at the time you purchase your contract.
Protection Plus provides an additional death benefit as described below. See
the appropriate part of "Tax information" later in this Prospectus for the
potential tax consequences of electing to purchase the Protection Plus feature
in an NQ, IRA or Rollover TSA contract. Once you purchase the Protection Plus
feature, you may not voluntarily terminate this feature.
32 Contract features and benefits
If the annuitant is 70 or younger when we issue your contract (or if the
successor owner/annuitant is 70 or younger when he or she becomes the successor
owner/annuitant), the death benefit will be:
the greater of:
o the account value or
o any applicable death benefit
Increased by:
o such death benefit less total net contributions, multiplied by 40%.
For purposes of calculating your Protection Plus benefit, the following
applies: (i) "Net contributions" are the total contributions made (or if
applicable, the total amount that would otherwise have been paid as a death
benefit had the successor owner/annuitant election not been made plus any
subsequent contributions) adjusted for each withdrawal that exceeds your
Protection Plus earnings. "Net contributions" are reduced by the amount of that
excess. Protection Plus earnings are equal to (a) minus (b) where (a) is the
greater of the account value and the death benefit immediately prior to the
withdrawal and (b) is the net contributions as adjusted by any prior
withdrawals; and (ii) "Death benefit" is equal to the greater of the account
value as of the date we receive satisfactory proof of death or any applicable
Guaranteed minimum death benefit as of the date of death.
If the annuitant is age 71 through 75 when we issue your contract (or if the
successor owner/annuitant is between the ages of 71 and 75 when he or she
becomes the successor owner/annuitant and Protection Plus had been elected at
issue), the death benefit will be:
the greater of:
o the account value or
o any applicable death benefit
Increased by:
o such death benefit (as described above) less total net contributions,
multiplied by 25%.
The value of the Protection Plus death benefit is frozen on the first contract
date anniversary after the annuitant turns age 80, except that the benefit will
be reduced for withdrawals on a pro rata basis. Reduction on a pro rata basis
means that we calculate the percentage of the current account value that is
being withdrawn and we reduce the benefit by that percentage. For example, if
the account value is $30,000 and you withdraw $12,000, you have withdrawn 40%
of your account value. If the benefit is $40,000 before the withdrawal, it
would be reduced by $16,000 ($40,000 X .40) and the benefit after the
withdrawal would be $24,000 ($40,000 - $16,000).
If you elect Spousal protection, the Protection Plus benefit is based on the
age of the older spouse, who may or may not be the annuitant. Upon the death of
the non-annuitant spouse, the account value will be increased by the value of
the Protection Plus benefit as of the date we receive due proof of death. Upon
the death of the annuitant, the value of the Protection Plus benefit is either
added to the death benefit payment or to the account value if successor
owner/annuitant is elected. If the surviving spouse elects to continue the
contract, the benefit will be based on the age of the surviving spouse as of
the date of the non-surviving spouse's death for the remainder of the contract.
If the surviving spouse is age 76 or older, the benefit will terminate and the
charge will no longer be in effect. See "Spousal protection" in "Payment of
death benefit" later in this Prospectus for more information.
Protection Plus must be elected when the contract is first issued: neither the
owner nor the successor owner/annuitant can add it subsequently. Ask your
financial professional or see Appendix VII later in this Prospectus to see if
this feature is available in your state.
INHERITED IRA BENEFICIARY CONTINUATION CONTRACT
This contract is available to an individual beneficiary of a traditional IRA or
a Roth IRA where the deceased owner held the individual retirement account or
annuity (or Roth individual retirement account or annuity) with an insurance
company or financial institution other than Equitable. The purpose of the
inherited IRA beneficiary continuation contract is to permit the beneficiary to
change the funding vehicle that the deceased owner selected ("original IRA")
while taking the required minimum distribution payments that must be made to
the beneficiary after the deceased owner's death. This contract is intended
only for beneficiaries who want to take payments at least annually over their
life expectancy. These payments generally must begin (or must have begun) no
later than December 31 of the calendar year following the year the deceased
owner died. This contract is not suitable for beneficiaries electing the
"5-year rule." See "Beneficiary continuation option for IRA and Roth IRA
contracts" under "Beneficiary continuation option" in "Payment of death
benefit" later in this Prospectus. You should discuss with your tax adviser
your own personal situation. This contract may not be available in all states.
Please speak with your financial professional for further information.
The inherited IRA beneficiary continuation contract can only be purchased by a
direct transfer of the beneficiary's interest under the deceased owner's
original IRA. The owner of the inherited IRA beneficiary continuation contract
is the individual who is the beneficiary of the original IRA. (Certain trusts
with only individual beneficiaries will be treated as individuals for this
purpose). The contract must also contain the name of the deceased owner. In
this discussion, "you" refers to the owner of the inherited IRA beneficiary
continuation contract.
The inherited IRA beneficiary continuation contract can be purchased whether or
not the deceased owner had begun taking required minimum distribution payments
during his or her life from the original IRA or whether you had already begun
taking required minimum distribution payments of your interest as a beneficiary
from the deceased owner's original IRA. You should discuss with your own tax
adviser when payments must begin or must be made.
Under the inherited IRA beneficiary continuation contract:
o You must receive payments at least annually (but can elect to receive
payments monthly or quarterly). Payments are generally made over your life
expectancy determined in the calendar year after the deceased owner's death
and determined on a term certain basis.
o The beneficiary of the original IRA will be the annuitant under the
inherited IRA beneficiary continuation contract. In the case where the
beneficiary is a "See Through Trust," the oldest beneficiary of the trust
will be the annuitant.
Contract features and benefits 33
o An inherited IRA beneficiary continuation contract is not available for
annuitants over age 70.
o The initial contribution must be a direct transfer from the deceased
owner's original IRA and is subject to minimum contribution amounts. See
"How you can purchase and contribute to your contract" earlier in this
section.
o Subsequent contributions of at least $1,000 are permitted but must be
direct transfers of your interest as a beneficiary from another IRA with a
financial institution other than Equitable, where the deceased owner is the
same as under the original IRA contract.
o You may make transfers among the investment options.
o You may choose at any time to withdraw all or a portion of the account
value. Any partial withdrawal must be at least $300. Withdrawal charges, if
applicable under your contract, will apply as described in "Charges and
expenses" later in this Prospectus.
o The Guaranteed minimum income benefit, successor owner/ annuitant feature,
special dollar cost averaging program (if applicable), automatic investment
program, GPB Options 1 and 2 and systematic withdrawals are not available
under the Inherited IRA beneficiary continuation contract.
o If you die, we will pay to a beneficiary that you choose the greater of the
annuity account value or the applicable death benefit.
o Upon your death, your beneficiary has the option to continue taking
required minimum distributions based on your remaining life expectancy 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. If your beneficiary
elects to continue to take distributions, we will increase the account
value to equal the applicable death benefit if such death benefit is
greater than such account value as of the date we receive satisfactory
proof of death and any required instructions, information and forms.
Thereafter, withdrawal charges (if applicable under your contract) will no
longer apply. If you had elected any enhanced death benefits, they will no
longer be in effect and charges for such benefits will stop. The Guaranteed
minimum death benefit will also no longer be in effect.
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, with a signed letter of instruction electing this right, to our
processing office within 10 days after you receive it. If state law requires,
this "free look" period may be longer. Other state variations may apply.
Generally, your refund will equal your account value under the contract on the
day we receive notification of your decision to cancel the contract and will
reflect (i) any investment gain or loss in the variable investment options
(less the daily charges we deduct), (ii) any guaranteed interest in the
guaranteed interest option, (iii) any positive or negative market value
adjustments in the fixed maturity options through the date we receive your
contract, and (iv) any interest in the account for special dollar cost
averaging through the date we receive your contract. Some states require that
we refund the full amount of your contribution (not reflecting (i), (ii),
(iii), or (iv) above). For any IRA contract 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 may 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 and in the SAI for
possible consequences of cancelling your contract.
In addition to the cancellation right described above, if you fully convert an
existing traditional IRA contract to a Roth Conversion IRA contract, you may
cancel your Roth Conversion IRA contract and return to a Rollover IRA contract.
Our processing office, or your financial professional, can provide you with the
cancellation instructions.
34 Contract features and benefits
2. Determining your contract's value
- --------------------------------------------------------------------------------
YOUR ACCOUNT VALUE AND CASH VALUE
Your "account value" is the total of the values you have in: (i) the variable
investment options; (ii) the guaranteed interest option; (iii) market adjusted
amounts in the fixed maturity options; (iv) the account for special dollar cost
averaging and (v) the loan reserve account (applicable to Rollover TSA
contracts only).
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) the
total amount or a pro rata portion of the annual administrative charge as well
as optional benefit charges; (ii) any applicable withdrawal charges and (iii)
the amount of any outstanding loan plus accrued interest (applicable to
Rollover TSA contracts only). Please see "Surrendering 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, less daily charges for:
(i) mortality and expense;
(ii) administrative expenses; and
(iii) distribution charges.
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);
(iii) increased to reflect a transfer into, or decreased to reflect a transfer
out of, a variable investment option; or
(iv) increased or decreased to reflect a transfer of your loan amount from or
to the loan reserve account under a Rollover TSA contract.
In addition, when we deduct the enhanced death benefit, Guaranteed minimum
income benefit, GPB Option 2 and/or the Protection Plus benefit charges, the
number of units credited to your contract will be reduced. Your units are also
reduced when we deduct the annual administrative charge. 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
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, which reflects withdrawals out of
the option and charges we deduct. 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, provided there have been
no withdrawals or transfers.
YOUR CONTRACT'S VALUE IN THE ACCOUNT FOR SPECIAL DOLLAR COST AVERAGING
Your value in the account for special dollar cost averaging at any time will
equal your contribution allocated to that option, plus interest, less the sum
of all amounts that have been transferred to the variable investment options
you have selected.
TERMINATION OF YOUR CONTRACT
Your contract will terminate without value if your account value is
insufficient to pay any applicable charges when due. Your account value could
become insufficient due to withdrawals and/or poor market performance. Upon
such termination, you will lose any applicable guaranteed benefits.
See Appendix VII later in this Prospectus for any state variations with regard
to terminating your contract.
Determining your contract's value 35
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 may not transfer any amount to the account for special dollar cost
averaging.
o You may not transfer to a fixed maturity option that has a rate to maturity
of 3% or less.
o If the annuitant is age 76-80, you must limit your transfers to fixed
maturity options with maturities of seven years or less. If the annuitant
is age 81 or older, you must limit your transfers to fixed maturity options
of five years or less. As of February 14, 2004, maturities of less than
eight years were not available. Also, the maturity dates may be no 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 and affect
your GPB.
o During the first contract year, transfers into the guaranteed interest
option are not permitted
o After the first contract year, a transfer into the guaranteed interest
option will not be permitted if such transfer would result in more than 25%
of the annuity account value being allocated to the guaranteed interest
option, based on the annuity account value as of the previous business day.
o No transfers are permitted into the Special 10 year fixed maturity option.
In addition, we reserve the right to restrict transfers among variable
investment options as described in your contract, including limitations on the
number, frequency, or dollar amount of transfers.
The maximum amount that may be transferred from the guaranteed interest option
to any investment option (including amounts transferred pursuant to the
fixed-dollar option and interest sweep option dollar cost averaging programs
described under "Allocating your contributions" in "Contract features and
benefits" earlier in this Prospectus) in any contract year is the greatest of:
(a) 25% of the amount you have in the guaranteed interest option on the last
day of the prior contract year; or,
(b) the total of all amounts transferred at your request from the guaranteed
interest option to any of the investment options in the prior contract
year; or
(c) 25% of amounts transferred or allocated to the guaranteed interest option
during the current contract year.
From time to time, we may remove the restrictions regarding transferring
amounts out of the guaranteed interest option. 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,
if any dollar cost averaging transfer out of the guaranteed interest option
causes a violation of the 25% outbound restriction, that dollar cost averaging
program will be terminated for the current contract year. A new dollar cost
averaging program can be started in the next or subsequent contract years.
You may request a transfer in writing, by telephone using TOPS or through
EQAccess. You must send in all written transfer requests directly to our
processing office. Transfer requests should specify:
(1) the contract number,
(2) the dollar amounts or percentages of your current account value 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 Accumulator(R) Elite(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.
Frequent transfers, including market timing and other program trading
strategies, may be disruptive to the underlying portfolios in which the
variable investment options invest. Disruptive transfer activity may hurt the
long term performance of a portfolio by, for example, requiring it to maintain
larger amounts of cash or to liquidate portfolio holdings at a disadvantageous
time or price. We currently use the procedures described below to discourage
disruptive transfer activity in AXA Premier VIP Trust and EQ Advisors Trust.
You should understand, however, that these procedures are subject to the
following limitations: (1) they do not eliminate the possibility that
disruptive transfer activity, including market timing, will occur or that
portfolio performance will be affected by such activity; (2) the design of
these procedures involves inherently subjective judgments, which we and AXA
Premier VIP Trust and EQ Advisors Trust seek to make in a fair and reasonable
manner consistent with interests of all policy and contract owners. Certain
frequent transfer activities attempt to exploit inefficiencies in how portfolio
securities are valued. Please see the prospectuses for the underlying
portfolios for more information on how portfolio shares are priced.
If we determine that your transfer patterns are disruptive, 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. 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.
36 Transferring your money among investment options
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 reduce disruptive activity, we
monitor the frequency of transfers, including the size of transfers in relation
to portfolio assets, in each underlying portfolio. When a potentially
disruptive transfer into or out of a portfolio occurs on a day when the
portfolio's aggregate deposits or aggregate redemptions exceed our monitoring
threshold, we may take the actions described above to restrict availability of
voice, fax and automated transaction services. We currently apply such action
for the remaining life of each affected contract. We also currently provide a
letter to owners who have engaged in disruptive transfer activity of our
intention to restrict access to communication 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 potentially disruptive transfer
activity and our monitoring procedures and thresholds, as well as change our
procedures to restrict this activity.
Our ability to monitor potentially disruptive transfer activity is limited in
certain circumstances. Group annuity contracts may be owned by retirement plans
on whose behalf we provide transfer instructions on an omnibus (aggregate)
basis, which may mask the disruptive transfer activity of individual plan
participants, and/or interfere with our ability to restrict communication
services. Also, underlying portfolios that are not in AXA Premier VIP Trust or
EQ Advisors Trust may be available for investment through companies that may
have policies and procedures regarding disruptive transfer activity that are
different from ours. Please see the prospectuses for those underlying
portfolios for more information.
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 on a contract year basis).
Rebalancing will occur on the same day of the month as the contract date. If a
contract is established after the 28th, rebalancing will occur on the first
business day of the month following the contract issue date.
While your rebalancing program is in effect, we will transfer amounts among the
variable investment options 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. 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; your rebalancing allocations will not be changed, and
the rebalancing program will remain in effect unless you request that it be
canceled in writing. There is no charge for the rebalancing feature.
You may not elect the rebalancing program if you are participating in any
dollar cost averaging program. Rebalancing is not available for amounts you
have allocated in the guaranteed interest option or the fixed maturity options.
Transferring your money among investment options 37
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. If you withdraw more than 90% of a
contract's current cash value, we will treat it as a request to surrender the
contract for its cash value. In addition, we have the right to pay the cash
value and terminate this contract if no contributions are made during the last
three completed contract years, and the account value is less than $500, or if
you make a withdrawal that would result in a cash value of less than $500. See
"Surrendering your contract to receive its cash value" below. For the tax
consequences of withdrawals, see "Tax information" later in this Prospectus and
in the SAI.
Please see "Termination of your contract" in "Determining your contract's
value" earlier in this Prospectus and "How withdrawals (and transfers out of
the Special 10 year fixed maturity option) affect your Guaranteed minimum
income benefit, Guaranteed minimum death benefit and Guaranteed principal
benefit option 2," below for more information on how withdrawals affect your
guaranteed benefits and could potentially cause your contract to terminate.
- --------------------------------------------------------------------------------
Method of withdrawal
-------------------------------------------------------------
Lifetime
required
Substantially minimum
Contract Lump sum Systematic equal distribution
- --------------------------------------------------------------------------------
NQ Yes Yes No No
- --------------------------------------------------------------------------------
Rollover IRA Yes Yes Yes Yes
- --------------------------------------------------------------------------------
Roth
Conversion
IRA Yes Yes Yes No
- --------------------------------------------------------------------------------
Inherited IRA Yes No No **
- --------------------------------------------------------------------------------
QP Yes No No Yes
- --------------------------------------------------------------------------------
Rollover
TSA* Yes Yes No Yes
- --------------------------------------------------------------------------------
* For some Rollover TSA contracts, your ability to take withdrawals, loans or
surrender your contract may be limited. You must provide withdrawal
restriction information when you apply for a contract. See "Tax Sheltered
Annuity contracts (TSAs)" in "Tax information" later in this Prospectus and
in the SAI.
** This contract pays out post-death required minimum distributions. See
"Inherited IRA beneficiary continuation contract" in "Contract features and
benefits" earlier in this Prospectus.
LUMP SUM WITHDRAWALS
(All contracts)
You may take lump sum withdrawals from your account value at any time.
(Rollover TSA contracts may have restrictions.) The minimum amount you may
withdraw is $300.
Lump sum withdrawals will be subject to a withdrawal charge if they exceed the
10% free withdrawal amount (see "10% free withdrawal amount" in "Charges and
expenses" later in this Prospectus). Under Rollover TSA contracts, if a loan is
outstanding, you may only take lump sum withdrawals as long as the cash value
remaining after any withdrawal equals at least 10% of the outstanding loan plus
accrued interest.
SYSTEMATIC WITHDRAWALS
(NQ, Rollover TSA, Rollover IRA and Roth Conversion IRA contracts)
You may take systematic withdrawals of a particular dollar amount or a
particular percentage of your account value. (Rollover TSA contracts may have
restrictions).
You may take systematic withdrawals on a monthly, quarterly or annual basis as
long as the withdrawals do not exceed the following percentages of your account
value: 0.8% monthly, 2.4% quarterly and 10.0% annually. The minimum amount you
may take in each systematic withdrawal is $250. If the amount withdrawn would
be less than $250 on the date a withdrawal is to be taken, we will not make a
payment and we will terminate your systematic withdrawal election.
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, we
will make the withdrawals on the same calendar day of the month as the contract
date. You must wait at least 28 days after your contract is issued before your
systematic withdrawals can begin.
You may elect to take systematic withdrawals at any time. If you own an IRA
contract, you may elect this withdrawal method only if you are between ages
59-1/2 and 70-1/2.
You may change the payment frequency, or the amount or percentage of your
systematic withdrawals, once each contract year. However, you may not change
the amount or percentage in any contract year in which you have already taken a
lump sum withdrawal. You can cancel the systematic withdrawal option at any
time.
Systematic withdrawals are not subject to a withdrawal charge, except to the
extent that, when added to a lump sum withdrawal previously taken in the same
contract year, the systematic withdrawal exceeds the 10% free withdrawal
amount. This option is not available if you have elected a guaranteed principal
benefit.
SUBSTANTIALLY EQUAL WITHDRAWALS
(Rollover IRA and Roth Conversion IRA contracts)
We offer our "substantially equal withdrawals option" to allow you to receive
distributions from your account value without triggering the 10% additional
federal income tax penalty, which normally applies to distributions made before
age 59-1/2. See "Tax information" later in this Prospectus and in the SAI. We
use one of the IRS-approved methods for doing this; this is not the exclusive
method of meeting this exception. After consultation with your tax adviser, you
may decide to use another method which would require you to compute amounts
yourself and request lump sum withdrawals. In such a case, a withdrawal
38 Accessing your money
charge may apply. Once you begin to take substantially equal withdrawals, you
should not stop them or change the pattern of your withdrawals until after the
later of age 59-1/2 or five full years after the first withdrawal. If you stop
or change the withdrawals or take a lump sum withdrawal, you may be liable for
the 10% federal tax penalty that would have otherwise been due on prior
withdrawals made under this option and for any interest on the delayed payment
of the penalty.
In accordance with IRS guidance, an individual who has elected to receive
substantially equal withdrawals may change, without penalty, from one of the
IRS-approved methods of calculating fixed payments to another IRS-approved
method (similar to the required minimum distribution rules) of calculating
payments which vary each year.
You may elect to take substantially equal withdrawals at any time before age
59-1/2. 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. You may not elect to
receive the first payment in the same contract year in which you took a lump
sum withdrawal. We will calculate the amount of your substantially equal
withdrawals using the IRS-approved method we offer. The payments will be made
monthly, quarterly or annually as you select. These payments will continue
until we receive written notice from you to cancel this option or you take a
lump sum withdrawal. You may elect to start receiving substantially equal
withdrawals again, but the payments may not restart in the same contract year
in which you took a lump sum withdrawal. We will calculate the new withdrawal
amount.
Substantially equal withdrawals that we calculate for you are not subject to a
withdrawal charge. This option is not available if you have elected a
guaranteed principal benefit.
LIFETIME REQUIRED MINIMUM DISTRIBUTION WITHDRAWALS
(Rollover IRA, QP and Rollover TSA contracts only -- See "Tax information"
later in this Prospectus and in the SAI)
We offer our "automatic required minimum distribution (RMD) service" to help
you meet lifetime required minimum distributions under federal income tax
rules. This is not the exclusive way for you to meet these rules. After
consultation with your tax adviser, you may decide to compute required minimum
distributions yourself and request lump sum withdrawals. In such a case, a
withdrawal charge may apply.
You may elect this service in the year in which you reach age 70-1/2 or in any
later year. The minimum amount we will pay out is $250. Currently, minimum
distribution withdrawal payments will be made annually. See "Required minimum
distributions" in "Tax information" later in this Prospectus and in the SAI for
your specific type of retirement arrangement.
We do not impose a withdrawal charge on minimum distribution withdrawals if you
are enrolled in our automatic RMD service except if, when added to a lump sum
withdrawal previously taken in the same contract year, the minimum distribution
withdrawal exceeds the 10% free withdrawal amount.
Under Rollover TSA contracts, you may not elect our automatic RMD service if a
loan is outstanding.
- --------------------------------------------------------------------------------
For Rollover IRA and Rollover TSA contracts, 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).
- --------------------------------------------------------------------------------
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 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 (other than the Special 10 year fixed maturity
option) in the order of the earliest maturity date(s) first. If the FMO amounts
are insufficient, we will deduct all or a portion of the withdrawal from the
account for special dollar cost averaging. If such amounts are still
insufficient, we will deduct any remaining portion from the Special 10 year
fixed maturity option. A market value adjustment will apply to withdrawals from
the fixed maturity options (including the Special 10 year fixed maturity
option).
HOW WITHDRAWALS (AND TRANSFERS OUT OF THE SPECIAL 10 YEAR FIXED MATURITY
OPTION) AFFECT YOUR GUARANTEED MINIMUM INCOME BENEFIT, GUARANTEED MINIMUM DEATH
BENEFIT AND GUARANTEED PRINCIPAL BENEFIT OPTION 2
In general, withdrawals will reduce your guaranteed benefits 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
benefit by the 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
benefit was $40,000 before the withdrawal, it would be reduced by $16,000
($40,000 X .40) and your new benefit after the withdrawal would be $24,000
($40,000 - $16,000).
Transfers out of the Special 10 year fixed maturity option will reduce the GPB
Option 2 amount on a pro rata basis. In addition, if you make a contract
withdrawal from the Special 10 year fixed maturity option, we will reduce your
GPB Option 2 in a similar manner; however, the reduction will reflect both a
transfer out of the Special 10 year fixed maturity option and a withdrawal from
the contract. Therefore, the reduction in GPB Option 2 is greater when you take
a contract withdrawal from the Special 10 year fixed maturity option than it
would be if you took the withdrawal from another investment option.
Similar to the example above, if your account value is $30,000 and you withdraw
$12,000 from the Special 10 year fixed maturity option, you have withdrawn 40%
of your account value. If your GPB Option 2
Accessing your money 39
benefit was $40,000 before the withdrawal, the reduction to reflect the
transfer out of the Special 10 year fixed maturity option would equal $16,000
($40,000 x .40). The amount used to calculate the reduction to reflect the
withdrawal from the contract is $24,000 ($40,000 - $16,000). The reduction to
reflect the withdrawal would equal $9,600 ($24,000 x .40), and your new benefit
after the withdrawal would be $14,400 ($24,000 - $9,600).
With respect to the Guaranteed minimum income benefit and the greater of 6%
Roll up to age 85 or the Annual Ratchet to age 85 enhanced death benefit,
withdrawals will reduce each of the benefits' 6% Roll up to age 85 benefit base
on a dollar-for-dollar basis, as long as the sum of withdrawals in a contract
year is 6% or less of the 6% Roll up benefit base on the most recent contract
date anniversary. Once a withdrawal is taken that causes the sum of withdrawals
in a contract year to exceed 6% of the benefit base on the most recent
anniversary, that entire withdrawal and any subsequent withdrawals in that same
contract year will reduce the benefit base pro rata. Reduction on a
dollar-for-dollar basis means that your 6% Roll up to age 85 benefit base will
be reduced by the dollar amount of the withdrawal for each Guaranteed benefit.
The Annual Ratchet to age 85 benefit base will always be reduced on a pro rata
basis.
LOANS UNDER ROLLOVER TSA CONTRACTS
You may take loans from a Rollover TSA unless restricted by the employer who
provided the Rollover TSA funds. If you cannot take a loan, or cannot take a
loan without approval from the employer who provided the funds, we will have
this information in our records based on what you and the employer who provided
the funds told us when you purchased your contract. The employer must also tell
us whether special employer plan rules of the Employee Retirement Income
Security Act of 1974 ("ERISA") apply. We will not permit you to take a loan
while you are enrolled in our "automatic required minimum distribution (RMD)
service."
You should read the terms and conditions on our loan request form carefully
before taking out a loan. Under Rollover TSA contracts subject to ERISA, you
may only take a loan with the written consent of your spouse. Your contract
contains further details of the loan provision. Please see Appendix VII later
in this Prospectus for any state restrictions you may be subject to if you take
a loan from a Rollover TSA contract. Also, see "Tax information" later in this
Prospectus and in the SAI for general rules applicable to loans.
We will permit you to have only one loan outstanding at a time. The minimum
loan amount is $1,000. The maximum amount is $50,000 or, if less, 50% of your
account value, subject to any limits under the federal income tax rules. The
term of a loan is five years. However, if you use the loan to acquire your
primary residence, the term is 10 years. The term may not extend beyond the
earliest of:
(1) the date annuity payments begin,
(2) the date the contract terminates, and
(3) the date a death benefit is paid (the outstanding loan will be deducted
from the death benefit amount).
A loan request under your Rollover TSA contract will be processed on the first
business day of the month following the date on which the properly completed
loan request form is received. Interest will accrue daily on your outstanding
loan at a rate we set. The loan interest rate will be equal to the Moody's
Corporate Bond Yield Averages for Baa bonds for the calendar month ending two
months before the first day of the calendar quarter in which the rate is
determined.
LOAN RESERVE ACCOUNT. On the date your loan is processed, we will transfer the
amount of your loan to the loan reserve account. Unless you specify otherwise,
we will subtract your loan on a pro rata basis from your value in the variable
investment options and the guaranteed interest option. If these amounts are
insufficient, any additional amount of the loan will be subtracted from the
fixed maturity options (other than the Special 10 year fixed maturity option),
in the order of the earliest maturity date(s) first. A market value adjustment
may apply. If the FMO amounts are insufficient, we will deduct all or a portion
of the loan from the account for special dollar cost averaging. If such amounts
are still insufficient, we will deduct any remaining portion from the Special
10 year fixed maturity option. A market value adjustment will apply to
withdrawals from the fixed maturity options (including the Special 10 year
fixed maturity option). If the amounts are withdrawn from the Special 10 year
fixed maturity option, the guaranteed benefit will be adversely affected. See
"Guaranteed principal benefit option 2" in "Contract features and benefits"
earlier in this Prospectus.
We will credit interest to the amount in the loan reserve account at a rate of
2% lower than the loan interest rate that applies for the time your loan is
outstanding. On each contract date anniversary after the date the loan is
processed, we will transfer the amount of interest earned in the loan reserve
account to the variable investment options on a pro rata basis. When you make a
loan repayment, unless you specify otherwise, we will transfer the dollar
amount of the loan repaid from the loan reserve account to the investment
options according to the allocation percentages we have on our records.
SURRENDERING 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. (Rollover
TSA contracts may have restrictions.) 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.
For the tax consequences of surrenders, see "Tax information" later in this
Prospectus and in the SAI.
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, payment of a death benefit, payment of any amount you
withdraw (less any withdrawal
40 Accessing your money
charges) and, upon surrender, 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 value in the guaranteed interest
option, fixed maturity options and the account for special dollar cost
averaging (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 10 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
Equitable Accumulator(R) Elite(SM) offers you several choices of annuity payout
options. Some enable you to receive fixed annuity payments, which can be either
level or increasing, 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. In addition, if you are exercising your Guaranteed minimum
income benefit, your choice of payout options are those that are available
under the Guaranteed minimum income benefit (see "Our Guaranteed minimum income
benefit option" in "Contract features and benefits" earlier in this
Prospectus).
- -------------------------------------------------------------------
Fixed annuity payout options Life annuity
Life annuity with period
certain
Life annuity with refund
certain
Period certain annuity
- -------------------------------------------------------------------
Variable Immediate Annuity Life annuity (not available
payout options in New York)
Life annuity with period
certain
- -------------------------------------------------------------------
Income Manager payout options Life annuity with period
(available for annuitants age 83 certain
or less at contract issue) Period certain annuity
- -------------------------------------------------------------------
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. 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.
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 guaranteed 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 OPTIONS
With fixed annuities, we guarantee fixed annuity payments will be based either
on the tables of guaranteed annuity purchase factors in your contract or on our
then current annuity purchase factors, 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 Immediate Annuities may be funded through your choice of available
variable investment options investing in portfolios of EQ Advisors Trust and
AXA Premier VIP Trust. The contract also offers a fixed income annuity payout
option that can be elected in combination with the variable annuity payout
option. The amount of each variable income 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.
INCOME MANAGER PAYOUT OPTIONS
The Income Manager payout annuity contracts differ from the other payout
annuity contracts. The other payout annuity contracts may provide higher or
lower income levels, but do not have all the features of
Accessing your money 41
the Income Manager payout annuity contract. You may request an illustration of
the Income Manager payout annuity contract from your financial professional.
Income Manager payout options are described in a separate prospectus that is
available from your financial professional. Before you select an Income Manager
payout option, you should read the prospectus which contains important
information that you should know.
Both NQ and IRA Income Manager payout options provide guaranteed level
payments. The Income Manager (life annuity with period certain) also provides
guaranteed increasing payments (NQ contracts only). You may not elect an Income
Manager payout option without life contingencies unless withdrawal charges are
no longer in effect under your contract.
For QP and Rollover TSA contracts, if you want to elect an Income Manager
payout option, we will first roll over amounts in such contract to a Rollover
IRA contract with the plan participant as owner.
You may choose to apply your account value of your Equitable Accumulator(R)
Elite(SM) contract to an Income Manager payout annuity. In this case, we will
consider any amounts applied as a withdrawal from your Equitable Accumulator(R)
Elite(SM), and we will deduct any applicable withdrawal charge. For the tax
consequences of withdrawals, see "Tax information" later in this Prospectus and
in the SAI.
Depending upon your circumstances, an Income Manager contract may be purchased
on a tax-free basis. Please consult your tax adviser. The Income Manager payout
options are not available in all states.
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 Immediate 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 under our
contract is imposed if you select a period certain. If the period certain is
more than 5 years, then the withdrawal charge deducted will not exceed 5% of
the account value.
For the Income Manager life contingent payout options no withdrawal charge is
imposed under your contract. If the withdrawal charge that otherwise would have
been applied to your account value under your contract is greater than 2% of
the contributions that remain in your contract at the time you purchase your
payout option, the withdrawal charges under the Income Manager will apply. The
year in which your account value is applied to the payout option will be
"contract year 1."
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. The contract owner and annuitant
must meet the issue age and payment requirements.
You can choose the date annuity payments begin but it may not be earlier than
thirteen months from the Equitable Accumulator(R) Elite(SM) contract date.
Except with respect to the Income Manager annuity payout options, where payments
are made on the 15th day of each month, 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 annuity maturity date described below.
The amount of the annuity payments will depend on the amount applied to
purchase the annuity and the applicable annuity purchase factors, discussed
earlier.
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.
ANNUITY MATURITY AGE
Your contract has a maturity date by which you must either take a lump sum
withdrawal or select an annuity payout option. The maturity date is generally
the contract date anniversary that follows the annuitant's 95th birthday.
Please see Appendix VII later in this Prospectus for more detailed information
on the annuity maturity date in New York and Pennsylvania.
Before the last day 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: (i) transfers (if permitted in
the future) among the variable investment options if a Variable Immediate
Annuity payout option is selected; and (ii) withdrawals or contract surrender
(subject to a market value adjustment) if an Income Manager payout option is
chosen.
42 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 An administrative charge
o A distribution charge
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 each contract date anniversary -- an annual administrative charge, if
applicable.
o At the time you make certain withdrawals or surrender your contract -- a
withdrawal charge.
o On each contract date anniversary -- a charge if you elect a death benefit
(other than the Standard death benefit).
o On each contract date anniversary -- a charge for the Guaranteed minimum
income benefit, if you elect this optional benefit.
o On each contract date anniversary -- a charge for Protection Plus, if you
elect this optional benefit.
o On the first 10 contract date anniversaries -- a charge for GPB Option 2,
if you elect this optional 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.
The charges under the contracts are designed to cover, in the aggregate, our
direct and indirect costs of selling, administering and providing benefits
under the contracts. They are also designed, in the aggregate, to compensate us
for the risks of loss we assume pursuant to the contracts. If, as we expect,
the charges that we collect from the contracts exceed our total costs in
connection with the contracts, we will earn a profit. Otherwise, we will incur
a loss.
The rates of certain of our charges have been set with reference to estimates
of the amount of specific types of expenses or risks that we will incur. In
most cases, this Prospectus identifies such expenses or risks in the name of
the charge; however, the fact that any charge bears the name of, or is designed
primarily to defray, a particular expense or risk does not mean that the amount
we collect from that charge will never be more than the amount of such expense
or risk. Nor does it mean that we may not also be compensated for such expense
or risk out of any other charges we are permitted to deduct by the terms of the
policies.
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.
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 Standard death
benefit. The daily charge is equivalent to an annual rate of 1.10% 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 income 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. Lastly,
we assume a mortality risk to the extent that at the time of death, the
Guaranteed minimum 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.
ADMINISTRATIVE CHARGE
We deduct a daily charge from the net assets in each variable investment option
to compensate us for administrative expenses under the contracts. The daily
charge is equivalent to an annual rate of 0.30% of the net assets in each
variable investment option.
DISTRIBUTION CHARGE
We deduct a daily charge from the net assets in each variable investment option
to compensate us for a portion of our sales expenses under the contracts. The
daily charge is equivalent to an annual rate of 0.25% of the net assets in each
variable investment option.
ANNUAL ADMINISTRATIVE CHARGE
We deduct an administrative charge from your account value on each contract
date anniversary. We deduct the charge if your account value on the last
business day of the contract year is less than $50,000. If your account value
on such date is $50,000 or more, we do not deduct the charge. During the first
two contract years, the charge is equal to $30 or, if less, 2% of your account
value. The charge is $30 for contract years three and later.
We will deduct this charge from your value in the variable investment options
and the guaranteed interest option (see Appendix VII later in this Prospectus
to see if deducting this charge from the guaranteed interest option is
permitted in your state) on a pro rata basis. If those
Charges and expenses 43
amounts are insufficient, we will deduct all or a portion of the charge from
the fixed maturity options (other than the Special 10 year fixed maturity
option) in order of the earliest maturity date(s) first. If such fixed maturity
option amounts are insufficient, we will deduct all or a portion of the charge
from the account for special dollar cost averaging. If such amounts are still
insufficient, we will deduct any remaining portion from the Special 10 year
fixed maturity option. If the contract is surrendered or annuitized or a death
benefit is paid, we will deduct a pro rata portion of the charge for that year.
A market value adjustment will apply to deductions from the fixed maturity
options (including the Special 10 year fixed maturity option).
If your account value is insufficient to pay this charge, your contract will
terminate without value and you will lose any applicable guaranteed benefits.
Please see "Termination of your contract" in "Determining your contract's
value" earlier in this Prospectus.
WITHDRAWAL CHARGE
A withdrawal charge applies in two circumstances: (1) if you make one or more
withdrawals during a contract year that, in total, exceeds the 10% free
withdrawal amount, described below, or (2) if you surrender your contract to
receive its cash value or to apply your cash value to a non-life contingent
annuity payout option.
The withdrawal charge equals a percentage of the contributions withdrawn in any
of the first four years after we receive a contribution. We determine the
withdrawal charge separately for each contribution according to the following
table:
- ----------------------------------------------------------------
Contract year
- ----------------------------------------------------------------
1 2 3 4 5
- ----------------------------------------------------------------
Percentage of contribution 8 % 7 % 6 % 5 % 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 withdrawals 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 your contract as withdrawn first. See "Tax
information" later in this Prospectus and in the SAI.
In order to give you the exact dollar amount of the withdrawal you request, we
deduct the amount of the withdrawal and withdrawal charge from your account
value. The amount deducted to pay withdrawal charges is also subject to that
same withdrawal charge percentage. We deduct the charge in proportion to the
amount of the withdrawal subtracted from each investment option. The withdrawal
charge helps cover sales expenses.
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 beginning of each contract
year, or in the case of the first contract year, your initial contribution,
minus any other withdrawals made during the contract year. The 10% free
withdrawal amount does not apply if you surrender your contract except where
required by law.
For NQ contracts issued to a charitable remainder trust, the free withdrawal
amount will equal the greater of: (1) the current account value less
contributions that have not been withdrawn (earnings in the contract), and (2)
the 10% free withdrawal amount defined above.
Certain withdrawals. If you elected the Guaranteed minimum income benefit
and/or the Greater of 6% roll up to age 85 or the annual ratchet to age 85
enhanced death benefit, the withdrawal charge will be waived for any withdrawal
that, together with any prior withdrawals made during the contract year, does
not exceed 6% of the beginning of contract year rollup portion of the related
benefit bases. If your withdrawal exceeds the amount described above, this
waiver is not applicable to that withdrawal, nor to any subsequent withdrawal
for the life of the contract.
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, or U.S.
Virgin Islands) 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, if the conditions as described in (i), (ii)
or (iii) above existed at the time a contribution was remitted or if the
condition began within 12 months of the 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 contracts issued in New York, please see Appendix VII later in this
Prospectus for the New York withdrawal charge schedule applicable to monies
withdrawn from and transferred among the fixed maturity options.
44 Charges and expenses
GUARANTEED MINIMUM DEATH BENEFIT CHARGE
ANNUAL RATCHET TO AGE 85. If you elect the Annual Ratchet to age 85 enhanced
death benefit, we deduct a charge annually from your account value on each
contract date anniversary for which it is in effect. The charge is equal to
0.25% of the Annual Ratchet to age 85 benefit base.
GREATER OF 6% ROLL UP TO AGE 85 OR ANNUAL RATCHET TO AGE 85. If you elect this
enhanced death benefit, we deduct a charge annually from your account value on
each contract date anniversary for which it is in effect. The charge is equal
to 0.60% of the greater of the 6% Roll up to age 85 or the Annual Ratchet to
age 85 benefit base.
We will deduct this charge from your value in the variable investment options
and the guaranteed interest option (see Appendix VII later in this Prospectus
to see if deducting this charge from the guaranteed interest option is
permitted in your state) on a pro rata basis. If those amounts are
insufficient, we will deduct all or a portion of the charge from the fixed
maturity options (other than the Special 10 year fixed maturity option) in the
order of the earliest maturity date(s) first. If such fixed maturity option
amounts are insufficient, we will deduct all or a portion of the charge from
the account for special dollar cost averaging. If such amounts are still
insufficient, we will deduct any remaining portion from the Special 10 year
fixed maturity option. If the contract is surrendered or annuitized or a death
benefit is paid, we will deduct a pro rata portion of the charge for that year.
A market value adjustment will apply to deductions from the fixed maturity
options (including the Special 10 year fixed maturity option).
If your account value is insufficient to pay this charge, your contract will
terminate without value and you will lose any applicable guaranteed benefits.
Please see "Termination of your contract" in "Determining your contract's
value" earlier in this Prospectus.
There is no additional charge for the standard death benefit.
GUARANTEED PRINCIPAL BENEFIT OPTION 2
If you purchase GPB Option 2, we deduct a charge annually from your account
value on the first 10 contract date anniversaries. The charge is equal to 0.50%
of the account value. We will deduct this charge from your value in the
variable investment options and the guaranteed interest option (see Appendix
VII later in this Prospectus to see if deducting this charge from the
guaranteed interest option is permitted in your state) on a pro rata basis. If
these amounts are insufficient, we will deduct any remaining portion of the
charge from amounts in any fixed maturity options (other than the Special 10
year fixed maturity option) in the order of the earliest maturity date(s)
first. If such amounts are insufficient, we will deduct all or a portion from
the account for special dollar cost averaging. If such amounts are still
insufficient, we will deduct any remaining portion from the Special 10 year
fixed maturity option. If the contract is surrendered or annuitized or a death
benefit is paid, we will deduct a pro rata portion of the charge for that year.
A market value adjustment will apply to deductions from the fixed maturity
options (including the Special 10 year fixed maturity option).
GUARANTEED MINIMUM INCOME BENEFIT CHARGE
If you elect the Guaranteed minimum income benefit, we deduct a charge annually
from your account value on each contract date anniversary until such time as
you exercise the Guaranteed minimum income benefit, elect another annuity
payout option, or the contract date anniversary after the annuitant reaches 85,
whichever occurs first. The charge is equal to 0.65% of the applicable benefit
base in effect on the contract date anniversary.
We will deduct this charge from your value in the variable investment options
and the guaranteed interest option (see Appendix VII later in this Prospectus
to see if deducting this charge from the guaranteed interest option is
permitted in your state) on a pro rata basis. If those amounts are
insufficient, we will deduct all or a portion of the charge from the fixed
maturity options in the order of the earliest maturity date(s) first. If such
fixed maturity option amounts are still insufficient, we will deduct all or a
portion of the charge from the account for special dollar cost averaging. If
the contract is surrendered or annuitized or a death benefit is paid, we will
deduct a pro rata portion of the charge for that year. A market value
adjustment will apply to deductions from the fixed maturity options.
If your account value is insufficient to pay this charge, your contract will
terminate without value and you will lose any applicable guaranteed benefits.
Please see "Termination of your contract" in "Determining your contract's
value" earlier in this Prospectus.
PROTECTION PLUS
If you elect Protection Plus, we deduct a charge annually from your account
value on each contract date anniversary for which it is in effect. The charge
is equal to 0.35% of the account value on each contract date anniversary. We
will deduct this charge from your value in the variable investment options and
the guaranteed interest option on a pro rata basis. If those amounts are
insufficient, we will deduct all or a portion of the charge from the fixed
maturity options (other than the Special 10 year fixed maturity option) in the
order of the earliest maturity date(s) first. If such fixed maturity option
amounts are insufficient, we will deduct all or a portion of the charge from
the account for special dollar cost averaging. If such amounts are still
insufficient, we will deduct any remaining portion from the Special 10 year
fixed maturity option. If the contract is surrendered or annuitized or a death
benefit is paid, we will deduct a pro rata portion of the charge for that year.
A market value adjustment will apply to deductions from the fixed maturity
options (including the Special 10 year fixed maturity option).
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 jurisdiction and ranges from 0% to 3.5%.
VARIABLE IMMEDIATE ANNUITY PAYOUT OPTION ADMINISTRATIVE FEE
We deduct a fee of $350 from the amount to be applied to the Variable Immediate
Annuity payout option.
Charges and expenses 45
CHARGES THAT THE TRUSTS DEDUCT
The Trusts deduct charges for the following types of fees and expenses:
o Management fees ranging from 0.10% to 1.50%.
o 12b-1 fees of either 0.25% or 0.35%.
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 prospectuses for the Trusts.
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 Guaranteed minimum income
benefit or the Guaranteed minimum death benefit, or offer variable investment
options that invest in shares of the Trusts 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 Rollover IRA and Roth Conversion 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,
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.
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 would be
unfairly discriminatory.
46 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 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. You may be
limited as to the beneficiary you can designate in a Rollover TSA contract. In
a QP contract, the beneficiary must be the trustee. Where an NQ contract is
owned by a minor pursuant to the Uniform Gift to Minors Act or the Uniform
Transfers to Minors Act, the beneficiary must be the estate of the annuitant.
Where an IRA contract is owned in a custodial individual retirement account,
the custodian must be the beneficiary so that the custodian can reinvest or
distribute the death benefit as the beneficiary of the account desires.
The death benefit is equal to your account value (without adjustment for any
otherwise applicable negative market value adjustment) or, if greater, the
applicable Guaranteed minimum death benefit. We determine the amount of the
death benefit (other than the applicable Guaranteed minimum death benefit) and
any amount applicable under the Protection Plus feature, 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.
The amount of the applicable Guaranteed minimum death benefit will be such
Guaranteed minimum death benefit as of the date of the annuitant's death,
adjusted for any subsequent withdrawals. The death benefit will be less a
deduction for any outstanding loan plus accrued interest on the date that the
death benefit payment is made (applies to Rollover TSA only).
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, a
surviving spouse who is the sole primary beneficiary, of the deceased
owner/annuitant can choose to be treated as the successor owner/annuitant and
continue the contract. The Successor owner/annuitant feature is only
available under NQ and individually owned IRA (other than Inherited IRAs)
contracts. See "Inherited IRA beneficiary continuation contract" in "Contract
features and benefits" earlier in this Prospectus.
For NQ and 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.
When the owner is not the annuitant under an NQ contract and the owner dies
before annuity payments begin, the beneficiary named to receive this death
benefit upon the annuitant's death will become the successor owner. If you do
not want this beneficiary 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. The surviving
owner automatically takes the place of any other beneficiary designation.
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. An eligible successor owner,
including a surviving joint owner after the first owner dies, may elect the
beneficiary continuation option for NQ contracts discussed in "Beneficiary
continuation option" below.
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.
SUCCESSOR OWNER AND ANNUITANT
If you are both the contract owner and the annuitant, and your spouse is the
sole primary beneficiary or the joint owner, then your spouse may elect to
receive the death benefit or continue the contract as successor
owner/annuitant. The successor owner/annuitant must be 85 or younger as of the
date of the non-surviving spouse's death.
If your surviving spouse decides to continue the contract, then as of the date
we receive satisfactory proof of your death, any required
Payment of death benefit 47
instructions, information and forms necessary to effect the Successor
owner/annuitant feature, we will increase the account value to equal your
elected guaranteed minimum death benefit as of the date of your death if such
death benefit is greater than such account value, plus any amount applicable
under the Protection Plus feature and adjusted for any subsequent withdrawals.
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 considered to be withdrawn
only after all other amounts have been withdrawn.
We will determine whether your applicable Guaranteed minimum death benefit
option will continue as follows:
o If the successor owner/annuitant is age 75 or younger on the date of the
original owner/annuitant's death, and the original owner/ annuitant was age
84 or younger at death, the Guaranteed minimum death benefit continues
based upon the option that was elected by the original owner/annuitant and
will continue to grow according to its terms until the contract date
anniversary following the date the successor owner/annuitant reaches age
85.
o If the successor owner/annuitant is age 75 or younger on the date of the
original owner/annuitant's death, and the original owner/ annuitant was age
85 or older at death, we will reinstate the Guaranteed minimum death
benefit that was elected by the original owner/annuitant. The benefit will
continue to grow according to its terms until the contract date anniversary
following the date the successor owner/annuitant reaches age 85.
o If the successor owner/annuitant is age 76 or over on the date of the
original owner/annuitant's death, the Guaranteed minimum death benefit will
no longer grow, and we will no longer charge for the benefit.
Where an NQ contract is owned by a Living Trust, as defined in the contract,
and at the time of the annuitant's death the annuitant's spouse is the sole
beneficiary of the Living Trust, the Trustee, as owner of the contract, may
request that the spouse be substituted as annuitant as of the date of the
annuitant's death. No further change of annuitant will be permitted.
Where an IRA contract is owned in a custodial individual retirement account,
and your spouse is the sole beneficiary of the account, the custodian may
request that the spouse be substituted as annuitant after your death.
For information on the operation of this feature with the Guaranteed minimum
income benefit, see "Exercise of Guaranteed minimum income benefit" under "Our
Guaranteed minimum income benefit option" in "Contract features and benefits"
earlier in this Prospectus. For information on the operation of this feature
with Protection Plus, see "Protection Plus" in "Guaranteed minimum death
benefit" under "Contract features and benefits," earlier in this Prospectus.
SPOUSAL PROTECTION
SPOUSAL PROTECTION OPTION FOR NQ CONTRACTS ONLY. This feature permits spouses
who are joint contract owners to increase the account value to equal the
guaranteed minimum death benefit, if higher, and by the value of any Protection
Plus benefit, if elected, upon the death of either spouse. This account value
"step up" occurs even if the surviving spouse was the named annuitant. If you
and your spouse jointly own the contract and one of you is the named annuitant,
you may elect the Spousal protection option at the time you purchase your
contract at no additional charge. Both spouses must be between the ages of 20
and 70 at the time the contract is issued and must each be named the primary
beneficiary in the event of the other's death.
The annuitant's age is generally used for the purpose of determining contract
benefits. However, for the Annual Ratchet to age 85 and the Greater of 6% Roll
up to age 85 or Annual Ratchet to age 85 guaranteed minimum death benefits and
the Protection Plus benefit, the benefit is based on the older spouse's age.
The older spouse may or may not be the annuitant.
If the annuitant dies prior to annuitization, the surviving spouse may elect to
receive the death benefit, including the value of the Protection Plus benefit,
or if eligible, continue the contract as the sole owner/ annuitant by electing
the successor owner/annuitant option. If the non-annuitant spouse dies prior to
annuitization, the surviving spouse continues the contract automatically as the
sole owner/annuitant. In either case, the contract would continue, as follows:
o As of the date we receive due proof of the spouse's death, the account
value will be re-set to equal the Guaranteed minimum death benefit as of
the date of the non-surviving spouse's death, if higher, increased by the
value of the Protection Plus benefit.
o The Guaranteed minimum death benefit continues to be based on the older
spouse's age for the life of the contract, even if the younger spouse is
originally or becomes the sole owner/annuitant.
o The Protection Plus benefit will now be based on the surviving spouse's age
at the date of the non-surviving spouse's death for the remainder of the
life of the contract. If the benefit had been previously frozen because the
older spouse had attained age 80, it will be reinstated if the surviving
spouse is age 75 or younger. The benefit is then frozen on the contract
date anniversary after the surviving spouse reaches age 80. If the
surviving spouse is age 76 or older, the benefit will be discontinued even
if the surviving spouse is the older spouse (upon whose age the benefit was
originally based).
o If the annuitant dies first, withdrawal charges will no longer apply to any
contributions made prior to the annuitant's death. If the non-annuitant
spouse dies first, the withdrawal charge schedule remains in effect with
regard to all contributions.
We will not allow Spousal protection to be added after contract issue. If there
is a change in owner or primary beneficiary, the Spousal protection benefit
will be terminated. If you divorce, but do not change the owner or primary
beneficiary, Spousal protection continues.
BENEFICIARY CONTINUATION OPTION
This feature permits a designated individual, on the contract owner's death, to
maintain a contract in the deceased contract owner's name and receive
distributions under the contract, instead of receiving the death benefit in a
single sum. We make this option available to ben-
48 Payment of death benefit
eficiaries under traditional IRA, Roth IRA and NQ contracts, subject to state
availability. Please speak with your financial professional or see Appendix VII
later in this Prospectus for further information.
BENEFICIARY CONTINUATION OPTION FOR TRADITIONAL IRA AND ROTH IRA CONTRACTS
ONLY. The beneficiary continuation option must be elected by September 30th of
the year following calendar year of your death and before any other
inconsistent election is made. Beneficiaries who do not make a timely election
will not be eligible for this 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 applicable death
benefit if such death benefit is greater than such account value, plus any
amount applicable under the Protection Plus feature, adjusted for any
subsequent withdrawals. Where an IRA contract is owned in a custodial
individual retirement account, the custodian may reinvest the death benefit in
an individual retirement annuity contract, using the account beneficiary as the
annuitant. Please speak with your financial professional for further
information.
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. For sole
spousal beneficiaries, payments may begin by December 31st of the calendar year
in which you would have reached age 70-1/2, if such time is later. For
traditional IRA contracts only, if you die before your Required Beginning Date
for Required Minimum Distributions, as discussed in the Statement of Additional
Information, the beneficiary may choose the "5-year rule" option instead of
annual payments over life expectancy. The 5-year rule is always available to
beneficiaries under Roth IRA contracts. If the beneficiary chooses this option,
the beneficiary may take withdrawals as desired, but the entire account value
must be fully withdrawn by December 31st of the calendar year which contains
the fifth anniversary of your death.
Under the beneficiary continuation option for IRA and Roth IRA contracts:
o The contract continues in your name for the benefit of your beneficiary.
o This feature is only available if the beneficiary is an individual. Certain
trusts with only individual beneficiaries will be treated as individuals
for this purpose.
o If there is more than one beneficiary, each beneficiary's share will be
separately accounted for. It will be distributed over the beneficiary's own
life expectancy, if payments over life expectancy are chosen.
o The minimum amount that is required in order to elect the beneficiary
continuation option is $5,000 for each beneficiary.
o The beneficiary may make transfers among the investment options but no
additional contributions will be permitted.
o If you had elected the Guaranteed minimum income benefit, an optional
enhanced death benefit or GPB Option 2 under the contract, they will no
longer be in effect and charges for such benefits will stop. Also, any
minimum death benefit feature 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, if any, will apply.
o 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 required 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.
BENEFICIARY CONTINUATION OPTION FOR NQ CONTRACTS ONLY. This feature, also known
as Inherited annuity, may only be elected when the NQ contract owner dies
before the annuity commencement date, whether or not the owner and the
annuitant are the same person. If the owner and annuitant are different and the
owner dies before the annuitant, for purposes of this discussion, "beneficiary"
refers to the successor owner. For a discussion of successor owner, see "When
an NQ contract owner dies before the annuitant" earlier in this section. This
feature must be elected within 9 months following the date of your death and
before any inconsistent election is made. Beneficiaries who do not make a
timely election will not be eligible for this option.
Generally, payments will be made once a year to the beneficiary over the
beneficiary's life expectancy, determined on a term certain basis and in the
year payments start. These payments must begin no later than one year after the
date of your death and are referred to as "scheduled payments." The beneficiary
may choose the "5-year rule" instead of scheduled payments over life
expectancy. If the beneficiary chooses the 5-year rule, there will be no
scheduled payments. Under the 5-year rule, the beneficiary may take withdrawals
as desired, but the entire account value must be fully withdrawn by the fifth
anniversary of your death.
Under the beneficiary continuation option for NQ contracts (regardless of
whether the owner and the annuitant are the same person):
o This feature is only available if the beneficiary is an individual. It is
not available for any entity such as a trust, even if all of the
beneficiaries of the trust are individuals.
o The contract continues in your name for the benefit of your beneficiary.
o If there is more than one beneficiary, each beneficiary's share will be
separately accounted for. It will be distributed over the respective
beneficiary's own life expectancy, if scheduled payments are chosen.
o The minimum amount that is required in order to elect the beneficiary
continuation option is $5,000 for each beneficiary.
Payment of death benefit 49
o The beneficiary may make transfers among the investment options but no
additional contributions will be permitted.
o If you had elected the Guaranteed minimum income benefit, an optional
enhanced death benefit or GPB Option 2 under the contract, they will no
longer be in effect and charges for such benefits will stop. Also, any
minimum death benefit feature will no longer be in effect.
o If the beneficiary chooses the "5-year rule," withdrawals may be made at
any time. If the beneficiary instead chooses scheduled payments, the
beneficiary must also choose between two potential withdrawal options at
the time of election. If the beneficiary chooses "Withdrawal Option 1", the
beneficiary cannot later withdraw funds in addition to the scheduled
payments the beneficiary is receiving; "Withdrawal Option 1" permits total
surrender only. "Withdrawal Option 2" permits the beneficiary to take
withdrawals, in addition to scheduled payments, at any time. However, the
scheduled payments under "Withdrawal Option 1" are afforded favorable tax
treatment as "annuity payments." See "Taxation of nonqualified annuities"
in "Tax Information" later in this Prospectus.
o Any partial withdrawals must be at least $300.
o Your beneficiary will have the right to name a beneficiary to receive any
remaining interest in the contract on the beneficiary's death.
o Upon the death of your beneficiary, the beneficiary he or she has named has
the option to either continue taking scheduled payments based on the
remaining life expectancy of the deceased beneficiary (if scheduled
payments were chosen) or to receive any remaining interest in the contract
in a lump sum. We will pay any remaining interest in the contract in a lump
sum if your beneficiary elects the 5-year rule. 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.
If you are both the owner and annuitant:
o 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 annuity account value to
equal the applicable death benefit if such death benefit is greater than
such account value, plus any amount applicable under the Protection Plus
feature, adjusted for any subsequent withdrawals.
o No withdrawal charges, if any, will apply to any withdrawals by the
beneficiary.
If the owner and annuitant are not the same person:
o If the beneficiary continuation option is elected, the beneficiary
automatically becomes the new annuitant of the contract, replacing the
existing annuitant.
o The annuity account value will not be reset to the death benefit amount.
o The contract's withdrawal charge schedule will continue to be applied to
any withdrawal or surrender other than scheduled payments; the contract's
free corridor amount will continue to apply to withdrawals but does not
apply to surrenders.
o We do not impose a withdrawal charge on scheduled payments except if, when
added to any withdrawals previously taken in the same contract year,
including for this purpose a contract surrender, the total amount of
withdrawals and scheduled payments exceed the free corridor amount. See the
"Withdrawal charges" in "Charges and expenses" earlier in this Prospectus.
If a contract is jointly owned:
o The surviving owner supersedes any other named beneficiary and may elect
the beneficiary continuation option.
o If the deceased joint owner was also the annuitant, see "If you are both
the owner and annuitant" earlier in this section.
o If the deceased joint owner was not the annuitant, see "If the owner and
annuitant are not the same person" earlier in this section.
50 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 Equitable Accumulator(R) Elite(SM) contracts owned by
United States individual taxpayers. The tax rules can differ, depending on the
type of contract, whether NQ, traditional IRA, Roth Conversion IRA, QP or TSA.
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
without notice. 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 or values under the contract, or payments under the contract,
for example, amounts due to beneficiaries, may be subject to federal or state
gift, estate, or inheritance 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 adviser 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") and Code Section 403(b)
Arrangements ("TSAs"), respectively: an IRA or 403(b) annuity contract such as
this one, or an IRA or 403(b)(7) custodial or other qualified account. Annuity
contracts can also be purchased in connection with retirement 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. More information on IRAs and TSAs is provided
in the SAI. 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 Accumulator(R) Elite(SM)'s Guaranteed minimum income benefit,
dollar cost averaging, choice of death benefits, selection of investment funds,
guaranteed interest option, fixed maturity options and its 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 arrangements. You should
be aware that cost may vary depending on the features and benefits made
available and the charges and expenses of the investment options or funds that
you elect. Although certain provisions of the Temporary Regulations on required
minimum distributions concerning the actuarial value of additional contract
benefits, which could have increased the amount required to be distributed from
annuity contracts funding qualified plans, TSAs and IRAs have currently been
suspended, these or similar provisions may apply in future years. You may want
to discuss with your tax adviser the potential implication of these Regulations
before you purchase this annuity contract or purchase additional features under
this annuity contract. See also Appendix III at the end of this Prospectus for
a discussion of QP contracts.
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 the 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).
Tax information 51
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 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.
PROTECTION PLUS FEATURE
In order to enhance the amount of the death benefit to be paid at the
Annuitant's death, you may purchase a Protection Plus rider for your NQ
contract. Although we regard this benefit as an investment protection feature
which should have no adverse tax effect, it is possible that the IRS could take
a contrary position or assert that the Protection Plus rider is not part of the
contract. In such a case, the charges for the Protection Plus rider could be
treated for federal income tax purposes as a partial withdrawal from the
contract. If this were so, such a deemed withdrawal could be taxable, and for
contract owners under age 59-1/2, also subject to a tax penalty. Were the IRS to
take this position, Equitable would take all reasonable steps to attempt to
avoid this result, which could include amending the contract (with appropriate
notice to you).
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
Equitable Accumulator(R) Elite(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 the contract, of the
source contract carries over to the Equitable Accumulator(R) Elite(SM) NQ
contract.
An owner may 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 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. The IRS has not specifically addressed the tax treatment
of the Spousal protection benefit. Please consult with your tax adviser before
electing this feature.
Beneficiary continuation option
We have received a private letter ruling from the IRS regarding certain tax
consequences of scheduled payments under the beneficiary continuation option
for NQ contracts. See the discussion "Beneficiary continuation option for NQ
Contracts only" in "Payment of death benefit" earlier in this Prospectus. Among
other things, the IRS rules that:
o scheduled payments under the beneficiary continuation option for NQ
contracts satisfy the death of owner rules of Section 72(s)(2) of the Code,
regardless of whether the beneficiary elects Withdrawal Option 1 or
Withdrawal Option 2;
o scheduled payments, any additional withdrawals under Withdrawal Option 2,
or contract surrenders under Withdrawal Option 1 will only be taxable to
the beneficiary when amounts are actually paid, regardless of the
Withdrawal Option selected by the beneficiary;
o a beneficiary who irrevocably elects scheduled payments with Withdrawal
Option 1 will receive "excludable amount" tax treatment on scheduled
payments. See "Annuity payments" earlier in this section. If the
beneficiary elects to surrender the contract before all scheduled payments
are paid, the amount received upon surrender is a non-annuity payment
taxable to the extent it exceeds any remaining investment in the contract.
The ruling does not specifically address the taxation of any payments received
by a beneficiary electing Withdrawal Option 2 (whether
52 Tax information
scheduled payments or any withdrawal that might be taken). There is no
assurance that we will receive any further rulings addressing the tax
consequences of payments under Withdrawal Option 2. Before electing the
beneficiary continuation option feature, the individuals you designate as
beneficiary or successor owner should discuss with their tax advisers the
consequences of such elections.
The tax treatment of a withdrawal after the death of the owner taken as a
single sum or taken as withdrawals under the 5-year rule is generally the same
as the tax treatment of a withdrawal from or surrender of 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, in accordance with IRS formulas.
INVESTOR CONTROL ISSUES
Under certain circumstances, the IRS has stated that you could be treated as
the owner (for tax purposes) of the assets of Separate Accounts 45 and 49. If
you were treated as the owner, you would be taxable on income and gains
attributable to the shares of the underlying portfolios.
The circumstances that would lead to this tax treatment would be that, in the
opinion of the IRS, you could control the underlying investment of Separate
Accounts 45 and 49. Recently, the IRS has said that the owners of variable
annuities will not be treated as owning the separate account assets provided
the underlying portfolios are restricted to variable life and annuity assets.
The variable annuity owners must have the right only to choose among the
portfolios, and must have no right to direct the particular investment
decisions within the portfolios.
Although we believe that, under current IRS guidance, you would not be treated
as the owner of the assets of Separate Accounts 45 and 49, there are some
issues that remain unclear. For example, the IRS has not issued any guidance as
to whether having a larger number of portfolios available, or an unlimited
right to transfer among them, could cause you to be treated as the owner. We do
not know whether the IRS will ever provide such guidance or whether such
guidance, if unfavorable, would apply retroactively to your contract.
Furthermore, the IRS could reverse its current guidance at any time. We reserve
the right to modify your contract as necessary to prevent you from being
treated as the owner of the assets of Separate Accounts 45 and 49.
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 trustee or custodian holds
the assets for the benefit of the IRA owner. The assets funding the account
typically include mutual funds and/or individual stocks and/or 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; and
o Roth IRAs, 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 (http:// www.irs.gov).
Equitable Life designs its IRA contracts to qualify as individual retirement
annuities under Section 408(b) of the Internal Revenue Code. You may purchase
the contract as a traditional IRA ("Rollover IRA") or Roth IRA ("Roth
Conversion IRA"). We also offer the Inherited IRA for payment of post-death
required minimum distributions in traditional IRA and Roth IRA. The SAI
contains the information that the IRS requires you to have before you purchase
an IRA. The disclosure generally assumes direct ownership of the individual
retirement annuity contract. For contracts owned in a custodial individual
retirement account, the disclosure will apply only if you terminate your
account or transfer ownership of the contract to yourself.
We have not applied for an opinion letter from the IRS to approve the
respective forms of the Equitable Accumulator(R) Elite(SM) traditional and Roth
IRA contracts for use as a traditional and Roth IRA, respectively.
Tax information 53
We have received IRS opinion letters approving the respective forms of a
similar traditional IRA and Roth IRA endorsement for use as a traditional 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 contracts submitted for IRS approval do not
include every feature possibly available under the Equitable Accumulator(R)
traditional and Roth IRA contracts.
The inherited IRA beneficiary continuation contract has not been submitted to
the IRS for approval as to form for use as a traditional IRA or Roth IRA.
Equitable intends to submit both traditional and Roth IRA versions of the
contract for formal approval, respectively. However, it is not clear whether
and when such approval may be received.
PROTECTION PLUS(SM) FEATURE
The Protection Plus feature is offered for IRA contracts, subject to state and
contract availability. We have received IRS opinion letters that the contract
with a similar Protection Plus feature qualifies 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 contracts submitted for IRS approval
do not include every feature possibly available under the Equitable
Accumulator(R) traditional and Roth IRA contracts. You should discuss with your
tax adviser whether you should consider purchasing an Accumulator(R) Elite(SM)
IRA or Accumulator(R) Elite(SM) Roth IRA with the optional Protection Plus
feature.
CONTRIBUTIONS
Individuals may make three different types of contributions to an 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 IRAs of the same type
("direct transfers").
In addition, an individual may make a taxable rollover contribution from a
traditional IRA to a Roth IRA ("conversion" contributions).
Contributions to all types of IRAs are compensation-based. They are either made
from your current compensation or have a connection with past compensation (for
example, rollover contributions from an eligible retirement plan that you had
with an employer related to past compensation). Under certain circumstances,
your nonworking spouse, former spouse or surviving spouse may contribute to an
IRA. You can make regular contributions for any year to a traditional IRA
within federal tax law limits up until the calendar year you reach age 70-1/2.
Regular contributions for any year to a Roth IRA can be made at any time during
your life, subject to federal tax law limits.
The amount of contributions you may make to an IRA for any year and whether
such contributions are eligible for special tax treatment (for example,
deductibility from income or a special credit) may vary, depending on your
income, age and whether you participate in an employer-sponsored retirement
plan. Roth IRA contributions are not tax deductible. The maximum regular
contribution that can be made to all of your IRAs (whether traditional or Roth)
for the taxable year for which the contribution is made is $3,000, for 2004 and
$4,000 for 2005. The maximum regular contribution is increased to $3,500 for
2004 and $4,500 for 2005 if you are at least age 50 at any time during the
taxable year for which the contribution is made.
Rollover and transfer contributions are not subject to dollar limits. Rollover
contributions may be made to a traditional IRA from "eligible retirement plans"
which include other traditional IRAs, qualified plans, TSAs and governmental
employer 457(b) plans. For Roth IRAs, rollover contributions may be made from
other Roth IRAs and traditional IRAs. The conversion of a traditional IRA to a
Roth IRA is taxable. Direct transfer contributions may only be made directly
from one traditional IRA to another or from one Roth IRA to another.
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 adviser 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.
A more complete discussion of contributions to traditional IRAs and Roth IRAs
is contained in the SAI.
WITHDRAWALS AND DISTRIBUTIONS
You can withdraw any or all of your funds from an IRA at any time; you do not
need to wait for a special event like retirement. Earnings in IRAs are not
subject to federal income tax until amounts are paid to you or your
beneficiary. Withdrawals from an IRA, surrender of an IRA, death benefits from
an IRA and annuity payments from an IRA may be fully or partially taxable.
Withdrawals and distributions from IRAs are taxable as ordinary income (not
capital gain).
Payments from traditional IRAs and Roth IRAs are taxed differently. Payments
from traditional IRAs are generally fully taxable unless you have made
nondeductible regular contributions or rolled over after-tax contributions. In
any event, the issuer of the traditional IRA is entitled to report the
distribution as fully taxable and it is your responsibility to calculate the
taxable and tax-free portions of any traditional IRA payments on your own tax
returns.
Distributions from Roth IRAs generally receive return of contribution treatment
first under federal income tax calculation rules before any income is taxable.
Certain distributions from Roth IRAs may qualify for fully tax-free treatment.
These are distributions after you reach age 59-1/2, die, become disabled or meet
a qualified first-time homebuyer tax rule. You also have to meet a five-year
aging period.
A distribution from a traditional IRA will not be taxable if it is rolled over
to an eligible retirement plan. A distribution from a Roth IRA will not be
taxable if it is rolled over to another Roth IRA.
Taxable withdrawals or distributions from IRAs may be subject to an additional
10% penalty tax if you are under age 59-1/2, unless an exception applies.
54 Tax information
Traditional IRAs are subject to required minimum distribution rules which
require that amounts begin to be distributed in a prescribed manner from the
IRA after the owner reaches age 70-1/2. These rules also require distributions
after the owner's death. No distributions are required to be made from Roth
IRAs until after the Roth IRA owner's death, but then the required minimum
distribution rules apply.
A more complete discussion of the tax aspects of withdrawals and distributions
for traditional IRAs and Roth IRAs is contained in the SAI.
SPECIAL RULES FOR CONTRACTS FUNDING QUALIFIED PLANS
For QP contracts, your plan administrator or trustee notifies you as to tax
consequences. See Appendix III at the end of this Prospectus.
TAX-SHELTERED ANNUITY CONTRACTS (TSAS)
GENERAL
This section of the prospectus covers some of the special tax rules that apply
to annuity contracts under Section 403(b) of the Internal Revenue Code (TSAs).
Generally there are two types of funding vehicles available for 403(b)
arrangements -- an annuity contract under Section 403(b)(1) of the Code or a
custodial account which invests only in mutual funds and which is treated as an
annuity contract under Section 403(b)(7) of which the Code. Both types of
403(b) arrangements qualify for tax deferral.
PROTECTION PLUS FEATURE
The Protection Plus feature is offered for Rollover TSA contracts, subject to
state and contract availability. There is a limit to the amount of life
insurance benefits that TSAs may offer. Although we view the optional
Protection Plus benefit as an investment protection feature which should have
no adverse tax effect and not as a life insurance benefit, the IRS has not
specifically addressed this question. It is possible that the IRS could take a
contrary position regarding tax qualification or assert that the Protection
Plus rider is not a permissible part of a TSA contract. If the IRS were to take
the position that the optional Protection Plus benefit is not part of the
contract, in such a case, the charges for the Protection Plus rider could be
treated for federal income tax purposes as a partial withdrawal from the
contract. If this were so, such a deemed withdrawal could affect the tax
qualification of the TSA and could be taxable. Were the IRS to take any adverse
position, Equitable would take all reasonable steps to attempt to avoid any
adverse result, which would include amending the contract (with appropriate
notice to you). You should discuss with your tax adviser whether you should
consider purchasing an Accumulator(R) Elite(SM) Rollover TSA contract with the
optional Protection Plus feature.
CONTRIBUTIONS TO TSAS
There are two ways you can make contributions to this Equitable Accumulator(R)
Elite(SM) Rollover TSA contract:
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.
If you make a direct transfer, you must fill out our transfer form.
ROLLOVER OR DIRECT TRANSFER CONTRIBUTIONS. You must establish your TSA with
funds that are directly transferred from another 403(b) arrangement or rolled
over from another 403(b) arrangement. You may make subsequent rollover
contributions to your Rollover TSA contract from these sources: qualified
plans, governmental employer 457(b) plans and traditional IRAs as well as other
TSAs and 403(b) arrangements. All rollover contributions must be pre-tax funds
only with appropriate documentation satisfactory to us.
You should discuss with your tax adviser 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.
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 Equitable Accumulator(R) Elite(SM) contract receiving the funds has
provisions at least as restrictive as the source contract.
Before you transfer funds to an Equitable Accumulator(R) Elite(SM) Rollover TSA
contract, you may have to obtain your employer's authorization or demonstrate
that you do not need employer authorization.
Contributions to TSAs are discussed in greater detail in the SAI.
DISTRIBUTIONS FROM 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. Your employer will tell us this when you establish the TSA through
a direct transfer.
You may also need spousal consent for certain transactions and payments.
WITHDRAWAL RESTRICTIONS. If this is a Revenue Ruling 90-24 direct transfer, we
will treat all amounts transferred to this contract and any future earnings on
the amount transferred as not eligible for withdrawal until one of the
following events happens:
o you are severed from employment with the employer which provided the funds
to purchase the TSA you are transferring to the Equitable Accumulator(R)
Elite(SM) Rollover TSA; or
o you reach age 59-1/2; or
o you die; or
o you become disabled (special federal income tax definition); or
o you take a hardship withdrawal (special federal income tax definition).
Tax information 55
The amount of funds subject to withdrawal restrictions may depend on the source
of the funds used to establish the Accumulator(R) Elite(SM) TSA.
TAX TREATMENT OF DISTRIBUTIONS. Amounts held under TSAs are generally not
subject to federal income tax until benefits are distributed. Distributions
include withdrawals from your TSA contract and annuity payments from your TSA
contract. Death benefits paid to a beneficiary are also taxable distributions.
Unless an exception applies, amounts distributed from TSAs are includable in
gross income as ordinary income. Distributions from TSAs may be subject to 20%
federal income tax withholding. See "Federal and state income tax withholding
and information reporting" below. In addition, TSA distributions may be subject
to additional tax penalties.
If you have made after-tax contributions, you will have a tax basis in your TSA
contract, which will be recovered tax-free. Since we currently do not accept
after-tax funds, we do not track your investment in the contract, if any. We
will report all distributions from this Rollover TSA as fully taxable. It is
your responsibility to determine how much of the distribution is taxable.
A penalty tax of 10% of the taxable portion of the distribution applies to
distributions from a TSA before you reach age 59-1/2 unless an exception
applies.
Distributions from TSAs are discussed in greater detail in the SAI.
LOANS FROM TSAS
Loans are generally not treated as a taxable distribution. You may take loans
from a TSA unless restricted by the employer (for example, under an employer
plan subject to ERISA). If you cannot take a loan, or cannot take a loan
without approval from the employer who provided the funds, we will have this
information in our records based on what you and the employer who provided the
TSA funds told us when you purchased your contract.
See Appendix VII later in this Prospectus for any state restrictions you may be
subject to if you take a loan from a Rollover TSA contract.
Loans from TSAs are discussed in greater detail in the SAI.
TAX-DEFERRED ROLLOVERS AND DIRECT TRANSFERS
You may roll over any "eligible rollover distribution" from a TSA into another
eligible retirement plan (a qualified plan, a governmental employer 457(b) plan
(separate accounting required), another TSA or a traditional IRA) which agrees
to accept the rollover.
A spousal beneficiary may also roll over death benefits or certain
divorce-related payments.
Direct transfers of TSA funds from one TSA to another under Revenue Ruling
90-24 are not distributions.
Rollovers from TSAs are discussed in greater detail in the SAI.
REQUIRED MINIMUM DISTRIBUTIONS
TSAs are subject to required minimum distribution rules beginning at age 70-1/2
or separation from service, if later. These rules are discussed in greater
detail in the SAI.
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 $17,280 in periodic
56 Tax information
annuity payments in 2004, 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), 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.
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 AND QUALIFIED PLAN DISTRIBUTIONS
Unless you have the distribution go directly to the new plan, eligible rollover
distributions from qualified plans and TSAs are subject to mandatory 20%
withholding. The plan administrator is responsible for withholding from
qualified plan distributions. An eligible rollover distribution from a TSA or a
qualified plan can be rolled over to another eligible retirement plan. All
distributions from a TSA 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 from service with the employer; 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
o substantially equal periodic payments made for a specified period of 10
years or more; or
o hardship withdrawals; 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.
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 No. 49 for taxes. We
do not now, but may in the future set up reserves for such taxes.
Tax information 57
8. More information
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ABOUT OUR SEPARATE ACCOUNT NO. 49
Each variable investment option is a subaccount of Separate Account No. 49. We
established Separate Account No. 49 in 1996 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 No. 49 and may withdraw any amounts that exceed
our reserves and other liabilities with respect to variable investment options
under our contracts. The results of the Separate Account's operations are
accounted for without regard to Equitable Life's other operations.
The Separate Account 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 the Separate Account.
Each subaccount (variable investment option) within the Separate Account
invests solely in class IB 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 the Separate Account 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 the Separate Account 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 the Separate Account or
a variable investment option directly);
(5) to deregister the Separate Account under the Investment Company Act of
1940;
(6) to restrict or eliminate any voting rights as to the Separate Account; 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
The Trusts 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.
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, and other aspects
of its operations, appears in the prospectuses for each Trust, which accompany
this Prospectus, or in the 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.
FMO rates are determined daily. The rates in the table below are illustrative
only and will most likely differ from the rates applicable at time of purchase.
Current FMO rates can be obtained from your financial professional.
For example, the rates to maturity for new allocations as of February 13, 2004
and the related price per $100 of maturity value were as shown below:
- --------------------------------------------------------------------
Fixed maturity options
with February 13th Rate to maturity
maturity date of as of Price per $100
maturity year February 13, 2004 of maturity value
- --------------------------------------------------------------------
2005 3.00%* $ 97.08
2006 3.00%* $ 94.25
2007 3.00%* $ 91.51
2008 3.00%* $ 88.84
2009 3.00%* $ 86.25
2010 3.00%* $ 83.73
2011 3.00%* $ 81.30
2012 3.30% $ 77.11
2013 3.53% $ 73.16
2014 3.73% $ 69.31
- --------------------------------------------------------------------
* Since these rates to maturity are 3%, no amounts could have been allocated to
these options.
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 any 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.
58 More information
(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 for your FMO based on the
rate for a new FMO issued on the same date and having the same maturity
date as your FMO; if the same maturity date is not available for new
FMOs, we determine a rate that is between the rates for new FMO
maturities that immediately precede and immediately follow your FMOs
maturity date.
(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.
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 by using a widely published index. We reserve the right to add up
to 0.25% 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 expect the rates to maturity for the fixed maturity options 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.
ABOUT OTHER METHODS OF PAYMENT
WIRE TRANSMITTALS AND ELECTRONIC APPLICATIONS
We accept initial and subsequent contributions sent by wire to our processing
office by agreement with certain broker-dealers. Such transmittals must be
accompanied by information we require to allocate your contribution. Wire
orders not accompanied by complete information may be retained as described
under "How you can make your contributions" under "Contract features and
benefits" earlier in this Prospectus.
Even if we accept the wire order and essential information, a contract
generally will not be issued until we receive and accept a properly completed
application. In certain cases we may issue a contract based on information
provided through certain broker-dealers with which we
More information 59
have established electronic facilities. In any such cases, you must sign our
Acknowledgement of Receipt form.
Where we require a signed application, the above procedures do not apply and no
financial transactions will be permitted until we receive the signed
application and have issued the contract. Where we issue a contract based on
information provided through electronic facilities, we require an
Acknowledgement of Receipt form, and financial transactions are only permitted
if you request them in writing, sign the request and have it signature
guaranteed, until we receive the signed Acknowledgement of Receipt form. After
your contract has been issued, additional contributions may be transmitted by
wire.
In general, the transaction date for electronic transmissions is the date on
which we receive at our regular processing office all required information and
the funds due for your contribution. We may also establish same-day electronic
processing facilities with a broker-dealer that has undertaken to pay
contribution amounts on behalf of its customers. In such cases, the transaction
date for properly processed orders is the business day on which the
broker-dealer inputs all required information into its electronic processing
system. You can contact us to find out more about such arrangements.
After your contract has been issued, additional contributions may be
transmitted by wire.
AUTOMATIC INVESTMENT PROGRAM -- FOR NQ CONTRACTS ONLY
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 contract on a monthly or quarterly basis. AIP is not available for
Rollover IRA, Roth Conversion IRA, QP or Rollover TSA contracts, nor is it
available with GPB Option 2.
The minimum amounts we will deduct are $100 monthly and $300 quarterly. AIP
additional contributions may be allocated to any of the variable investment
options and available fixed maturity options. 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.
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. on a business day, we will use the next business day.
o A loan request under your Rollover TSA contract will be processed on the
first business day of the month following the date on which the properly
completed loan request form is received.
o If your transaction is set to occur on the same day of the month as the
contract date and that date is the 29th, 30th or 31st of the month, then
the transaction will occur on the 1st day of the next month.
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 If we have entered into an agreement with your broker-dealer for automated
processing of contributions upon receipt of customer order, your
contribution will be considered received at the time your broker-dealer
receives your contribution and all information needed to process your
application, along with any required documents, and transmits your order to
us in accordance with our processing procedures. Such arrangements may
apply to initial contributions, subsequent contributions, or both, and may
be commenced or terminated at any time without prior notice. If required by
law, the "closing time" for such orders will be earlier than 4 p.m.,
Eastern Time.
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 the guaranteed interest option will receive the
crediting rate in effect on that business day for the specified time
period.
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
(unless a rate lock-in is applicable).
o Initial contributions allocated to the account for special dollar cost
averaging receive the interest rate in effect on that business day. At
certain times, we may offer the opportunity to lock in the interest rate
for an initial contribution to be received under Section 1035 exchanges and
trustee to trustee transfers. Your financial professional can provide
information, or you can call our processing office.
o Transfers to or from variable investment options will be made at the value
next determined after the close of the business day.
60 More information
o Transfers to a fixed maturity option will be based on the rate to maturity
in effect for that fixed maturity option on the business day of the
transfer.
o Transfers to the guaranteed interest option will receive the crediting rate
in effect on that business day for the specified time period.
o For the interest sweep option, 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 the prospectuses 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.
The Trusts sell their shares to Equitable Life separate accounts in connection
with Equitable Life's variable annuity and/or life insurance products, and to
separate accounts of insurance companies, both affiliated and unaffiliated with
Equitable Life. EQ Advisors Trust and AXA Premier VIP Trust also sell their
shares to the trustee of a qualified plan for Equitable Life. We currently do
not foresee any disadvantages to our policyowners arising out of these
arrangements. However, the Board of Trustee or Directors of each Trust intends
to monitor events 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 Board's response insufficiently protects our policyowners, we
will see to it that appropriate action is taken to do so.
SEPARATE ACCOUNT NO. 49 VOTING RIGHTS
If actions relating to the Separate Account 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 No. 49, our ability to meet our obligations under the
contracts, or the distribution of the contracts.
ABOUT OUR INDEPENDENT AUDITORS
The consolidated financial statements of Equitable Life at December 31, 2003
and 2002, and for the three years ended December 31, 2003 incorporated in this
Prospectus by reference to the 2003 Annual Report on Form 10-K are incorporated
in reliance on the report of PricewaterhouseCoopers LLP, independent auditors,
given on the authority of said firm as experts in auditing and accounting.
FINANCIAL STATEMENTS
The financial statements of Separate Account No. 49, 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 1-800-789-7771.
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 Rollover IRA, Roth Conversion IRA,
QP or Rollover TSA contract except by surrender to us. If your individual
retirement annuity contract is held in your custodial individual retirement
account, you may only assign or transfer ownership of such an IRA contract to
yourself. Loans are not available and you cannot assign Rollover IRA, Roth
Conversion IRA, QP or Rollover TSA contracts as security for a loan or other
obligation. If the employer that provided the funds does not restrict them,
loans are available under a Rollover TSA contract.
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 Rollover IRA, Roth
Conversion IRA, QP or Rollover TSA 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.
More information 61
DISTRIBUTION OF THE CONTRACTS
The contracts are distributed by both AXA Advisors, LLC ("AXA Advisors") and
AXA Distributors, LLC ("AXA Distributors"). Both AXA Advisors and AXA
Distributors serve as principal underwriters of Separate Account No. 49. The
offering of the contracts is intended to be continuous.
AXA Advisors (the successor to EQ Financial Consultants, Inc.), an affiliate of
Equitable Life, and AXA Distributors, an indirect wholly owned subsidiary of
Equitable Life, are registered with the SEC as broker dealers and are members
of the National Association of Securities Dealers, Inc. Their principal
business address is 1290 Avenue of the Americas, New York, NY 10104. Both
broker dealers also act as distributors for other Equitable Life annuity
products.
AXA Distributors is a successor by merger to all of the functions, rights and
obligations of Equitable Distributors, Inc. ("EDI"). Like AXA Distributors, EDI
was owned by Equitable Holdings, LLC.
The contracts are sold by financial professionals of AXA Advisors and its
affiliates and by financial professionals of AXA Distributors, as well as by
affiliated and unaffiliated broker dealers who have entered into selling
agreements with AXA Distributors.
We pay broker-dealer sales compensation that will generally not exceed 5.5% of
the total contributions made under the contracts. Broker-dealers receiving
sales compensation will generally pay a portion of it to their financial
representatives as commissions related to the sales of the contracts. AXA
Distributors may also receive compensation and reimbursement for its marketing
services under the terms of its distribution agreement with Equitable Life, as
well as payments from portfolio advisers for sales meetings and/or seminar
sponsorships.
Equitable and/or AXA Distributors and/or AXA Advisors may use their respective
past profits or other resources to pay brokers and other financial
intermediaries for certain expenses they incur in providing services intended
to promote the sales of our products and/or shares in the underlying Trusts.
These services may include sales personnel training, prospectus review,
marketing and related services as well as support services that benefit
contract owners.
Similarly, in an effort to promote the sale of our products, AXA Advisors may
provide its financial professionals and managerial personnel with a higher
percentage of sales commissions and/or more compensation for the sale of an
Equitable variable product than it would for the sale of another product. Such
practice is known as providing differential compensation. Other forms of
compensation financial professionals may receive include health and retirement
benefits, credits towards stock options awards and rewards for sales incentive
campaigns. In addition, managerial personnel may receive expense
reimbursements, marketing allowances and so called "overrides." In part for tax
reasons, AXA Advisors financial professionals and managerial personnel qualify
for health and retirement benefits based on their sales of our variable
products.
These payments and differential compensation (together, "payments") can vary in
amount based on the applicable product and/or entity or individual involved. As
with any incentive, such payments may cause the recipient to show preference in
recommending the purchase or sale of our products. However, under applicable
rules of the National Association of Securities Dealers, Inc., AXA Advisors
financial professionals may only recommend to you products that they reasonably
believe are suitable for you based on facts that you have disclosed as to your
other security holdings, financial situation and needs. In making any
recommendation, financial professionals may nonetheless face conflicts of
interest because of the differences in compensation from one product category
to another, and because of differences in compensation between products in the
same category. Although Equitable takes all of its costs into account in
establishing the level of fees and expenses in our products, payments made will
not result in any separate charge to you under your contract.
62 More information
9. Incorporation of certain documents by reference
- --------------------------------------------------------------------------------
Equitable Life's annual report on Form 10-K for the year ended December 31,
2003 is considered to be a part of this Prospectus because they are
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 63
Appendix I: Condensed financial information
- --------------------------------------------------------------------------------
The unit values and number of units outstanding shown below are for contracts
offered under Separate Account 49 with the same daily asset charges of 1.65%.
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, 2003
- -----------------------------------------------------------------------------------------------------------------
For the years ending December 31,
---------------------------------------------------------
2003
- -----------------------------------------------------------------------------------------------------------------
AXA Aggressive Allocation
Unit value $ 10.66
Number of units outstanding (000's) 195
- -----------------------------------------------------------------------------------------------------------------
AXA Conservative Allocation
Unit value $ 10.31
Number of units outstanding (000's) 116
- -----------------------------------------------------------------------------------------------------------------
AXA Conservative-Plus Allocation
Unit value $ 10.41
Number of units outstanding (000's) 215
- -----------------------------------------------------------------------------------------------------------------
AXA Moderate Allocation
Unit value $ 10.51
Number of units outstanding (000's) 970
- -----------------------------------------------------------------------------------------------------------------
AXA Moderate-Plus Allocation
Unit value $ 10.67
Number of units outstanding (000's) 560
- -----------------------------------------------------------------------------------------------------------------
AXA Premier VIP Aggressive Equity
Unit value $ 10.66
Number of units outstanding (000's) 15
- -----------------------------------------------------------------------------------------------------------------
AXA Premier VIP Core Bond
Unit value $ 10.16
Number of units outstanding (000's) 301
- -----------------------------------------------------------------------------------------------------------------
AXA Premier VIP Health Care
Unit value $ 10.59
Number of units outstanding (000's) 86
- -----------------------------------------------------------------------------------------------------------------
AXA Premier VIP High Yield
Unit value $ 10.59
Number of units outstanding (000's) 282
- -----------------------------------------------------------------------------------------------------------------
AXA Premier VIP International Equity
Unit value $ 11.23
Number of units outstanding (000's) 65
- -----------------------------------------------------------------------------------------------------------------
AXA Premier VIP Large Cap Core Equity
Unit value $ 10.58
Number of units outstanding (000's) 20
- -----------------------------------------------------------------------------------------------------------------
AXA Premier VIP Large Cap Growth
Unit value $ 10.45
Number of units outstanding (000's) 59
- -----------------------------------------------------------------------------------------------------------------
AXA Premier VIP Large Cap Value
Unit value $ 11.07
Number of units outstanding (000's) 59
- -----------------------------------------------------------------------------------------------------------------
A-1 Appendix I: Condensed financial information
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, 2003 (CONTINUED)
- -----------------------------------------------------------------------------------------------------------------
For the years ending December 31,
---------------------------------------------------------
2003
- -----------------------------------------------------------------------------------------------------------------
AXA Premier VIP Small/Mid Cap Growth
Unit value $ 10.53
Number of units outstanding (000's) 97
- -----------------------------------------------------------------------------------------------------------------
AXA Premier VIP Small/Mid Cap Value
Unit value $ 10.99
Number of units outstanding (000's) 103
- -----------------------------------------------------------------------------------------------------------------
AXA Premier VIP Technology
Unit value $ 10.31
Number of units outstanding (000's) 35
- -----------------------------------------------------------------------------------------------------------------
EQ/Alliance Common Stock
Unit value $ 10.92
Number of units outstanding (000's) 158
- -----------------------------------------------------------------------------------------------------------------
EQ/Alliance Growth and Income
Unit value $ 10.92
Number of units outstanding (000's) 127
- -----------------------------------------------------------------------------------------------------------------
EQ/Alliance Intermediate Government Securities
Unit value $ 10.09
Number of units outstanding (000's) 69
- -----------------------------------------------------------------------------------------------------------------
EQ/Alliance International
Unit value $ 11.19
Number of units outstanding (000's) 66
- -----------------------------------------------------------------------------------------------------------------
EQ/Alliance Premier Growth
Unit value $ 10.34
Number of units outstanding (000's) 44
- -----------------------------------------------------------------------------------------------------------------
EQ/Alliance Quality Bond
Unit value $ 10.20
Number of units outstanding (000's) 95
- -----------------------------------------------------------------------------------------------------------------
EQ/Alliance Small Cap Growth
Unit value $ 10.75
Number of units outstanding (000's) 81
- -----------------------------------------------------------------------------------------------------------------
EQ/Bernstein Diversified Value
Unit value $ 10.93
Number of units outstanding (000's) 310
- -----------------------------------------------------------------------------------------------------------------
EQ/Calvert Socially Responsible
Unit value $ 10.49
Number of units outstanding (000's) 5
- -----------------------------------------------------------------------------------------------------------------
EQ/Capital Guardian International
Unit value $ 11.17
Number of units outstanding (000's) 178
- -----------------------------------------------------------------------------------------------------------------
EQ/Capital Guardian Research
Unit value $ 10.72
Number of units outstanding (000's) 86
- -----------------------------------------------------------------------------------------------------------------
EQ/Capital Guardian U. S. Equity
Unit value $ 10.79
Number of units outstanding (000's) 275
- -----------------------------------------------------------------------------------------------------------------
Appendix I: Condensed financial information A-2
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, 2003 (CONTINUED)
- -----------------------------------------------------------------------------------------------------------------
For the years ending December 31,
---------------------------------------------------------
2003
- -----------------------------------------------------------------------------------------------------------------
EQ/Emerging Markets Equity
Unit value $ 11.48
Number of units outstanding (000's) 46
- -----------------------------------------------------------------------------------------------------------------
EQ/Equity 500 Index
Unit value $ 10.76
Number of units outstanding (000's) 204
- -----------------------------------------------------------------------------------------------------------------
EQ/Evergreen Omega
Unit value $ 10.69
Number of units outstanding (000's) 126
- -----------------------------------------------------------------------------------------------------------------
EQ/FI Mid Cap
Unit value $ 11.33
Number of units outstanding (000's) 291
- -----------------------------------------------------------------------------------------------------------------
EQ/FI Small/Mid Cap Value
Unit value $ 11.04
Number of units outstanding (000's) 149
- -----------------------------------------------------------------------------------------------------------------
EQ/J.P. Morgan Core Bond
Unit value $ 10.20
Number of units outstanding (000's) 284
- -----------------------------------------------------------------------------------------------------------------
EQ/Janus Large Cap Growth
Unit value $ 10.46
Number of units outstanding (000's) 46
- -----------------------------------------------------------------------------------------------------------------
EQ/Lazard Small Cap Value
Unit value $ 10.93
Number of units outstanding (000's) 191
- -----------------------------------------------------------------------------------------------------------------
EQ/Marsico Focus
Unit value $ 10.57
Number of units outstanding (000's) 435
- -----------------------------------------------------------------------------------------------------------------
EQ/Mercury Basic Value Equity
Unit value $ 10.92
Number of units outstanding (000's) 210
- -----------------------------------------------------------------------------------------------------------------
EQ/Mercury International Value
Unit value $ 11.09
Number of units outstanding (000's) 30
- -----------------------------------------------------------------------------------------------------------------
EQ/MFS Emerging Growth Companies
Unit value $ 10.24
Number of units outstanding (000's) 29
- -----------------------------------------------------------------------------------------------------------------
EQ/MFS Investors Trust
Unit value $ 10.57
Number of units outstanding (000's) 69
- -----------------------------------------------------------------------------------------------------------------
EQ/Money Market
Unit value $ 9.96
Number of units outstanding (000's) 42
- -----------------------------------------------------------------------------------------------------------------
EQ/Putnam Growth & Income Value
Unit value $ 10.97
Number of units outstanding (000's) 42
- -----------------------------------------------------------------------------------------------------------------
A-3 Appendix I: Condensed financial information
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, 2003 (CONTINUED)
- -----------------------------------------------------------------------------------------------------------------
For the years ending December 31,
2003
- -----------------------------------------------------------------------------------------------------------------
EQ/Putnam Voyager
Unit value $ 10.41
Number of units outstanding (000's) 15
- -----------------------------------------------------------------------------------------------------------------
EQ/Small Company Index
Unit value $ 10.71
Number of units outstanding (000's) 79
- -----------------------------------------------------------------------------------------------------------------
EQ/Technology
Unit value $ 10.23
Number of units outstanding (000's) 29
- -----------------------------------------------------------------------------------------------------------------
Laudus Rosenberg VIT Value Long/Short Equity
Unit value $ 10.16
Number of units outstanding (000's) 43
- -----------------------------------------------------------------------------------------------------------------
U.S. Real Estate
Unit value $ 10.99
Number of units outstanding (000's) 41
- -----------------------------------------------------------------------------------------------------------------
Appendix I: Condensed financial information A-4
Appendix II: Purchase considerations for QP contracts
- --------------------------------------------------------------------------------
Trustees who are considering the purchase of an Equitable Accumulator(R)
Elite(SM) QP contract should discuss with their tax advisers whether this is an
appropriate investment vehicle for the employer's plan. Trustees should consider
whether the plan provisions permit the investment of plan assets in the QP
contract, the distribution of such an annuity, the purchase of the guaranteed
minimum income benefit, and the payment of death benefits in accordance with the
requirements of the federal income tax rules. The QP contract and this
Prospectus should be reviewed in full, and the following factors, among others,
should be noted. Assuming continued plan qualification and operation, earnings
on qualified plan assets will accumulate value on a tax-deferred basis even if
the plan is not funded by the Equitable Accumulator(R) Elite(SM) QP contract or
another annuity. Therefore, you should purchase an Equitable Accumulator(R)
Elite(SM) QP contract to fund a plan for the contract's features and benefits
other than tax deferral, after considering the relative costs and benefits of
annuity contracts and other types of arrangements and funding vehicles. This QP
contract accepts transfer contributions only and not regular, ongoing payroll
contributions. For 401(k) plans under defined contribution plans, no employee
after-tax contributions are accepted.
We will not accept defined benefit plans. For defined contribution plans, we
will only accept transfers from another defined contribution plan or a change
of investment vehicles in the plan. Only one additional transfer contribution
may be made per contract year. If overfunding of a plan occurs or amounts
attributable to an excess contribution must be withdrawn, withdrawals from the
QP contract may be required. A withdrawal charge and/or market value adjustment
may apply.
Equitable Life will not perform or provide any plan recordkeeping services with
respect to the QP contracts. The plan's administrator will be solely
responsible for performing or providing for all such services. There is no loan
feature offered under the QP contracts, so if the plan provides for loans and a
participant/employee takes a loan from the plan, other plan assets must be used
as the source of the loan and any loan repayments must be credited to other
investment vehicles and/or accounts available under the plan.
Given that required minimum distributions must generally commence from the plan
for annuitants after age 70-1/2, trustees should consider that:
o the QP contract may not be an appropriate purchase for annuitants
approaching or over age 70-1/2;
o although certain provisions of the Temporary Regulations on required
minimum distributions which would have required that the actuarial value of
additional annuity contract benefits be added to the dollar amount credited
for purposes of calculating required minimum distributions have currently
been suspended, these or similar provisions may apply in future years, and
could increase the amounts required to be distributed from the contract;
and
o the Guaranteed minimum income benefit may not be an appropriate feature for
annuitants who are older than age 60-1/2 when the contract is issued.
Finally, because the method of purchasing the QP contract, including the large
initial contribution and the features of the QP contract may appeal more to
plan participants/employees who are older and tend to be highly paid, and
because certain features of the QP contract are available only to plan
participants/employees who meet certain minimum and/or maximum age
requirements, plan trustees should discuss with their advisers whether the
purchase of the QP contract would cause the plan to engage in prohibited
discrimination in contributions, benefits or otherwise.
B-1 Appendix II: Purchase considerations for QP contracts
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 was allocated
on February 13, 2004 to a fixed maturity option with a maturity date of
February 13, 2013 (nine years later) at a hypothetical rate to maturity of
7.00%, resulting in a maturity value of $183,914 on the maturity date. We
further assume that a withdrawal of $50,000 is made four years later on
February 13, 2009.
- -----------------------------------------------------------------------------------------------------------------------------------
Hypothetical assumed rate to maturity on February 13, 2009
------------------------------------------------------------
5.00% 9.00%
- -----------------------------------------------------------------------------------------------------------------------------------
As of February 13, 2009 (before withdrawal)
- -----------------------------------------------------------------------------------------------------------------------------------
(1) Market adjusted amount $144,082 $ 119,503
- -----------------------------------------------------------------------------------------------------------------------------------
(2) Fixed maturity amount $131,104 $ 131,104
- -----------------------------------------------------------------------------------------------------------------------------------
(3) Market value adjustment:
(1) - (2) $ 12,978 $ (11,601)
- -----------------------------------------------------------------------------------------------------------------------------------
On February 13, 2009 (after withdrawal)
- -----------------------------------------------------------------------------------------------------------------------------------
(4) Portion of market value adjustment associated with withdrawal:
(3) x [$50,000/(1)] $ 4,504 $ (4,854)
- -----------------------------------------------------------------------------------------------------------------------------------
(5) Reduction in fixed maturity amount: [$50,000 - (4)] $ 45,496 $ 54,854
- -----------------------------------------------------------------------------------------------------------------------------------
(6) Fixed maturity amount: (2) - (5) $ 85,608 $ 76,250
- -----------------------------------------------------------------------------------------------------------------------------------
(7) Maturity value $120,091 $ 106,965
- -----------------------------------------------------------------------------------------------------------------------------------
(8) Market adjusted amount of (7) $ 94,082 $ 69,503
- -----------------------------------------------------------------------------------------------------------------------------------
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 portion of 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 portion of a positive
market value adjustment is realized. The market value is computed differently
if you withdraw amounts on a date other than the anniversary of the
establishment of the fixed maturity option.
Appendix III: Market value adjustment example C-1
Appendix IV: Enhanced death benefit example
- --------------------------------------------------------------------------------
The death benefit under the contracts is equal to the account value or, if
greater, the enhanced death benefit, if elected.
The following illustrates the enhanced death benefit calculation. Assuming
$100,000 is allocated to the variable investment options (with no allocation to
the EQ/Alliance Intermediate Government Securities, EQ/Money Market, the
guaranteed interest option, the fixed maturity options or the Special 10 year
fixed maturity option), no additional contributions, no transfers, no
withdrawals and no loans under a Rollover TSA contract, the enhanced death
benefit for an annuitant age 45 would be calculated as follows:
- -----------------------------------------------------------------------------------------
End of
contract 6% Roll up to age 85 Annual Ratchet to age 85
year Account value enhanced death benefit enhanced death benefit
- -----------------------------------------------------------------------------------------
1 $105,000 $106,000 $105,000
- -----------------------------------------------------------------------------------------
2 $115,500 $112,360 $115,500
- -----------------------------------------------------------------------------------------
3 $129,360 $119,102 $129,360
- -----------------------------------------------------------------------------------------
4 $103,488 $126,248 $129,360
- -----------------------------------------------------------------------------------------
5 $113,837 $133,823 $129,360
- -----------------------------------------------------------------------------------------
6 $127,497 $141,852 $129,360
- -----------------------------------------------------------------------------------------
7 $127,497 $150,363 $129,360
- -----------------------------------------------------------------------------------------
The account values for contract years 1 through 7 are based on hypothetical
rates of return of 5.00%, 10.00%, 12.00%, (20.00)%, 10.00%, 12.00% and 0.00%.
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.
ANNUAL RATCHET TO AGE 85
(1) At the end of contract years 1 through 3, the enhanced death benefit is the
current account value.
(2) At the end of contract years 4 through 7, the enhanced death benefit is the
enhanced death benefit at the end of the prior year since it is equal to or
higher than the current account value.
GREATER OF 6% ROLL UP TO AGE 85 OR THE ANNUAL RATCHET TO AGE 85
The enhanced death benefit under this option for each year shown would be the
greater of the amounts shown under the 6% Roll up to age 85 or the Annual
Ratchet to age 85.*
* At the end of contract years 4 through 7, the death benefit will be the
enhanced death benefit. At the end of contract years 1, 2 and 3, the death
benefit will be the current account value.
D-1 Appendix IV: Enhanced death benefit example
Appendix V: Hypothetical illustrations
- --------------------------------------------------------------------------------
ILLUSTRATION OF ACCOUNT VALUES, CASH VALUES AND CERTAIN GUARANTEED MINIMUM
BENEFITS
The following tables illustrate the changes in account value, cash value and
the values of the "greater of 6% Roll up to age 85 or the Annual Ratchet to age
85" guaranteed minimum death benefit, the Protection Plus benefit and the
Guaranteed minimum income benefit under certain hypothetical circumstances for
an Accumulator(R) Elite(SM) contract. The table illustrates the operation of a
contract based on a male, issue age 60, who makes a single $100,000
contribution and takes no withdrawals. The amounts shown are for the beginning
of each contract year and assume that all of the account value is invested in
portfolios that achieve investment returns at constant gross annual rates of 0%
and 6% (i.e., before any investment management fees, 12b-1 fees or other
expenses are deducted from the underlying portfolio assets). After the
deduction of the arithmetic average of the investment management fees, 12b-1
fees and other expenses of all of the underlying portfolios (as described
below), the corresponding net annual rates of return would be (3.33)% and 2.67%
for the Accumulator(R) Elite(SM) contract, at the 0% and 6% gross annual rates,
respectively. These net annual rates of return reflect the trust and separate
account level charges, but they do not reflect the charges we deduct from your
account value annually for the optional Guaranteed minimum death benefit,
Protection Plus benefit and the Guaranteed minimum income benefit features, as
well as the annual administrative charge. If the net annual rates of return did
reflect these charges, the net annual rates of return would be lower; however,
the values shown in the following tables reflect all contract charges. The
values shown under "Lifetime annual guaranteed minimum income benefit" reflect
the lifetime income that would be guaranteed if the Guaranteed minimum income
benefit is selected at that contract anniversary. An "N/A" in these columns
indicates that the benefit is not exercisable in that year. A "0" under any of
the death benefit and/or "Lifetime annual guaranteed minimum income benefit"
columns indicates that the contract has terminated due to insufficient account
value and, consequently, the guaranteed benefit has no value.
With respect to fees and expenses deducted from assets of the underlying
portfolios, the amounts shown in all tables reflect (1) investment management
fees equivalent to an effective annual rate of 0.68%, and (2) an assumed
average asset charge for all other expenses of the underlying portfolios
equivalent to an effective annual rate of 0.85% and (3) 12b-1 fees equivalent
to an effective annual rate of 0.25%. These rates are the arithmetic average
for all portfolios that are available as investment options. In other words,
they are based on the hypothetical assumption that account values are allocated
equally among the variable investment options. The actual rates associated with
any contract will vary depending upon the actual allocation of policy values
among the investment options. These rates do not reflect expense limitation
arrangements in effect with respect to certain of the underlying portfolios, as
described in the footnotes to the fee table for the underlying portfolios in
"Fee Table" earlier in this Prospectus. With these arrangements, the charges
shown above would be lower. This would result in higher values than those shown
in the following tables.
Because your circumstances will no doubt differ from those in the illustrations
that follow, values under your contract will differ, in most cases
substantially. Upon request, we will furnish you with a personalized
illustration.
Appendix V: Hypothetical illustrations E-1
Variable deferred annuity
Accumulator(R) Elite(SM)
$100,000 Single contribution and no withdrawals
Male, issue age 60
Benefits:
Greater of 6% Roll up to age 85 or the Annual Ratchet to age 85 Guaranteed
minimum death benefit
Protection Plus
Guaranteed minimum income benefit
Greater of 6% Roll
up to age 85
or the Annual
Ratchet
to age 85
Guaranteed
Minimum Death
Benefit
-------------------
Account Value Cash Value
------------------- ------------------
Age Contract Year 0% 6% 0% 6% 0% 6%
- --------------------------------------------------------------------------------
60 1 100,000 100,000 92,000 92,000 100,000 100,000
61 2 94,907 100,886 87,907 93,886 106,000 106,000
62 3 89,926 101,712 83,926 95,712 112,360 112,360
63 4 85,049 102,472 80,049 97,472 119,102 119,102
64 5 80,266 103,160 80,266 103,160 126,248 126,248
65 6 75,569 103,768 75,569 103,768 133,823 133,823
66 7 70,949 104,289 70,949 104,289 141,852 141,852
67 8 66,396 104,715 66,396 104,715 150,363 150,363
68 9 61,902 105,038 61,902 105,038 159,385 159,385
69 10 57,457 105,249 57,457 105,249 168,948 168,948
74 15 35,576 104,254 35,576 104,254 226,090 226,090
79 20 13,489 98,695 13,489 98,695 302,560 302,560
84 25 0 86,539 0 86,539 0 404,893
89 30 0 80,036 0 80,036 0 429,187
94 35 0 75,826 0 75,826 0 429,187
95 36 0 74,927 0 74,927 0 429,187
Lifetime Annual
Guaranteed Minimum Income Benefit
------------------------------------
Total death benefit
with Protection Guaranteed Hypothetical
Plus Income Income
------------------- ------------------ -----------------
Age 0% 6% 0% 6% 0% 6%
- ---------------------------------------------------------------
60 100,000 100,000 N/A N/A N/A N/A
61 108,400 108,400 N/A N/A N/A N/A
62 117,304 117,304 N/A N/A N/A N/A
63 126,742 126,742 N/A N/A N/A N/A
64 136,747 136,747 N/A N/A N/A N/A
65 147,352 147,352 N/A N/A N/A N/A
66 158,593 158,593 N/A N/A N/A N/A
67 170,508 170,508 N/A N/A N/A N/A
68 183,139 183,139 N/A N/A N/A N/A
69 196,527 196,527 N/A N/A N/A N/A
74 276,527 276,527 14,266 14,266 14,266 14,266
79 383,584 383,584 20,393 20,393 20,393 20,393
84 0 493,179 0 34,821 0 34,821
89 0 517,472 N/A N/A N/A N/A
94 0 517,472 N/A N/A N/A N/A
95 0 517,472 N/A N/A N/A N/A
The hypothetical investment results are illustrative only and should not be
deemed a representation of past or future investment results. Actual investment
results may be more or less than those shown and will depend on a number of
factors, including investment allocations made by the owner. The account value,
cash value and guaranteed benefits for a contract would be different from the
ones shown if the actual gross rate of investment return averaged 0% or 6% over
a period of years, but also fluctuated above or below the average for
individual contract years. We can make no representation that these
hypothetical investment results can be achieved for any one year or continued
over any period of time. In fact, for any given period of time, the investment
results could be negative.
E-2 Appendix V: Hypothetical illustrations
Appendix VI: Guaranteed principal benefit example
- --------------------------------------------------------------------------------
For purposes of these examples, we assume that there is an initial contribution
of $100,000, made to the contract on February 13, 2004. We also assume that no
additional contributions, no transfers among options and no withdrawals from
the contract are made. For GPB Option 1, the example also assumes that a 10
year fixed maturity option is chosen. The hypothetical gross rates of return
with respect to amounts allocated to the variable investment options are 0%, 6%
and 10%. The numbers below reflect the deduction of all applicable separate
account and contract charges and also reflect the charge for GPB Option 2.
Also, for any given performance of your variable investment options, GPB Option
1 produces higher account values than GPB Option 2 unless investment
performance has been significantly positive. The examples should not be
considered a representation of past or future expenses. Similarly, the annual
rates of return assumed in the example are not an estimate or guarantee of
future investment performance.
- ---------------------------------------------------------------------------------------------------------------
Assuming 100%
in variable
Assuming 100% Under GPB Under GPB investment
in FMO Option 1 Option 2 options
- ---------------------------------------------------------------------------------------------------------------
Amount allocated to FMO on February 13, 2004 100,000 69,310 35,000 --
based upon a 3.73% rate to maturity
- ---------------------------------------------------------------------------------------------------------------
Initial account value allocated to the variable 0 30,690 65,000 100,000
investment options on February 13, 2004
- ---------------------------------------------------------------------------------------------------------------
Account value in the fixed maturity option on 144,269 100,000 50,494 0
February 13, 2014
- ---------------------------------------------------------------------------------------------------------------
Annuity account value (computed by adding 144,269 121,648 100,000* 70,538
together the value at the maturity date of the
applicable fixed maturity option plus the value of
amounts in the variable investment options on
February 13, 2014, assuming a 0% gross rate of
return)
- ---------------------------------------------------------------------------------------------------------------
Annuity account value (computed by adding 144,269 139,555 127,826** 128,885
together the value at the maturity date of the
applicable fixed maturity option plus the value of
amounts in the variable investment options on
February 13, 2014, assuming a 6% gross rate of
return)
- ---------------------------------------------------------------------------------------------------------------
Annuity account value (computed by adding 144,269 157,989 164,516** 188,951
together the value at the maturity date of the
applicable fixed maturity option plus the value of
amounts in the variable investment options on
February 13, 2014, assuming a 10% gross rate of
return)
- ---------------------------------------------------------------------------------------------------------------
* Since the annuity account value is less than the alternate benefit under
GPB Option 2, the annuity account value is adjusted upward to the
guaranteed amount or an increase of $7,730 in this example.
** Since the annuity account value is greater than the alternate benefit under
GPB Option 2, GPB Option 2 will not affect the annuity account value.
Appendix VI: Guaranteed principal benefit example F-1
Appendix VII -- State contract availability and/or variations of certain
features and benefits
- --------------------------------------------------------------------------------
The following information is a summary of the states where the Equitable
Accumulator(R) Elite(SM) contract or certain features and/or benefits are either
NOT available as of the date of this Prospectus OR have certain variations to
the contract's features and benefits as previously described in this
Prospectus.
STATES WHERE CERTAIN ACCUMULATOR(R) ELITE(SM) FEATURES AND/OR BENEFITS ARE NOT
AVAILABLE OR HAS CERTAIN VARIATIONS TO FEATURES AND/OR BENEFITS:
- -----------------------------------------------------------------------------------------------------------------------------------
State Features and Benefits Availability or Variation
- -----------------------------------------------------------------------------------------------------------------------------------
MARYLAND Fixed maturity options Not Available
Guaranteed principal benefit option1 and Guaranteed Not Available
principal benefit option 2
- -----------------------------------------------------------------------------------------------------------------------------------
NEW YORK Greater of the 6% roll up or Annual Ratchet Guaran- Not Available (you have a choice of the standard death benefit
teed minimum death benefit or the Annual Ratchet to age 85 guaranteed minimum death
benefit), as described earlier in this Prospectus.
Protection Plus Not Available
Variable Immediate Annuity payout options -- Life Not Available
annuity contracts
See "Termination of your contract" in "Determining If your account value in the variable investment options and the
your contract's value" fixed maturity options is insufficient to pay the annual
administrative, guaranteed minimum death benefit and/or the
guaranteed minimum income benefit charges, and you have no
account value in the guaranteed interest option, your contract
will terminate without value, and you will lose any applicable
benefits. See "Charges and expenses" earlier in this Prospectus.
See "The amount applied to purchase an annuity For fixed annuity period certain payout options only, the amount
payout option" in "Accessing your money" applied to the annuity benefit is the greater of the cash
value or 95% of what the account value would be if no withdrawal
charge applied. The income provided, however, will never be less
than what would be provided by applying the account value to
the guaranteed annuity purchase factors.
See "Annuity maturity date" in "accessing your The maturity date by which you must take a lump sum with-
money" drawal or select an annuity payout option is as follows:
Maximum
Issue age Annuitization age
---------- ------------------
0-80 90
81 91
82 92
83 93
84 94
85 95
Please see this section earlier in this Prospectus for more
information.
- -----------------------------------------------------------------------------------------------------------------------------------
G-1 Appendix VII -- State contract availability and/or variations of certain
features and benefits
- -----------------------------------------------------------------------------------------------------------------------------------
State Features and Benefits Availability or Variation
- -----------------------------------------------------------------------------------------------------------------------------------
NEW YORK, See "Charges and expenses" With regard to the Annual administrative, Guaranteed minimum
CONTINUED death benefit, Guaranteed principal benefit option 2 and Guar-
anteed minimum income benefit charges, respectively, we will
deduct the related charge, as follows for each: we will deduct the
charge from your value in the variable investment options on a
pro rata basis. If these amounts are insufficient, we will deduct
all or a portion of the charge from the fixed maturity options
(other than the Special 10 year fixed maturity option) in the
order of the earliest maturity date(s) first. If such fixed
maturity option amounts are insufficient, we will deduct all or a
portion of the charge from the account for special dollar cost averaging
(not available if the Guaranteed principal benefit option is elected).
If such amounts are still insufficient, we will deduct any
remaining portion from the Special 10 year fixed maturity option.
If the contract is surrendered or annuitized or a death benefit is
paid, we will deduct a pro rata portion of the charge for that
year. A market value adjustment will apply to deductions from
the fixed maturity options (including the Special 10 year fixed
maturity option).
In New York, deductions from the fixed maturity options (includ-
ing the Special 10 year fixed maturity option) cannot cause the
credited net interest for the contract year to fall below 1.5%.
With regard to the Annual administrative, Guaranteed minimum
death benefit and Guaranteed minimum income benefit charges
only, if your account value in the variable investment options and
the fixed maturity options is insufficient to pay this charge, and
you have no account value in the guaranteed interest option,
your contract will terminate without value and you will lose any
applicable guaranteed benefits. Please see "Termination of your
contract" in "Determining your contract's value" earlier in this
Prospectus.
Fixed maturity options -- withdrawal charges For contracts issued in New York, the withdrawal charge that
applies to withdrawals taken from amounts in the fixed maturity
options will never exceed 7% and will be determined by applying
the New York Alternate Scale I shown below. If you withdraw
amounts that have been transferred from one fixed maturity
option to another, we use the New York Alternate Scale II (also
shown below) if it produces a higher charge than Alternate
Scale I.
The New York withdrawal charge may not exceed the withdrawal
charge that would normally apply to the contract. If a contribu-
tion has been in the contract for more than 4 years and therefore
would have no withdrawal charge, no withdrawal charge will
apply. Use of a New York Alternate Scale can only result in a
lower charge. We will compare the result of applying Alternate
Scale I or II, as the case may be, to the result of applying the
normal withdrawal charge, and will charge the lower withdrawal
charge.
- -----------------------------------------------------------------------------------------------------------------------------------
Appendix VII -- State contract availability and/or variations of
certain features and benefits G-2
- ------------------------------------------------------------------------------------------------------------------------------------
State Features and Benefits Availability or Variation
- ------------------------------------------------------------------------------------------------------------------------------------
NEW YORK, Fixed maturity options -- withdrawal charges NY Alternate Scale I NY Alternate Scale II
CONTINUED (continued) Year of investment in fixed Year of transfer within fixed
maturity option* maturity option*
--------------------------------------------------------------------
Within year 1 7% Within year 1 5%
--------------------------------------------------------------------
2 6% 2 4%
--------------------------------------------------------------------
3 5% 3 3%
--------------------------------------------------------------------
4 4% 4 2%
--------------------------------------------------------------------
After year 5 0% After year 5 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.
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.
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 with the shortest available maturity. If we
are not offering other fixed maturity options, we will transfer
your maturity value to the EQ/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 what 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.
- ------------------------------------------------------------------------------------------------------------------------------------
PENNSYLVANIA Contribution age limitations The following contribution limits apply:
Maximum
Issue age Contribution age
-------- ----------------
0-75 82
76 83
77 84
78-80 85
81-85 87
Special dollar cost averaging program In Pennsylvania, we refer to this program as "enhanced rate dol-
lar cost averaging."
See "Annuity maturity date" in "Accessing your The maturity date by which you must take a lump sum with-
money" drawal or select an annuity payout option is as follows:
Maximum
Issue age annuitization age
--------- ------------------
0-75 85
76 86
77 87
78-80 88
81-85 90
- ------------------------------------------------------------------------------------------------------------------------------------
G-3 Appendix VII -- State contract availability and/or variations of certain
features and benefits
- ------------------------------------------------------------------------------------------------------------------------------------
State Features and Benefits Availability or Variation
- ------------------------------------------------------------------------------------------------------------------------------------
PUERTO RICO IRA, Roth IRA, Inherited IRA and Rollover TSA Not Available
contracts
Beneficiary continuation option (IRA) Not Available
- ------------------------------------------------------------------------------------------------------------------------------------
VERMONT Loans under Rollover TSA contracts Taking a loan in excess of the Internal Revenue Code limits may
result in adverse tax consequences. Please consult your tax
adviser before taking a loan that exceeds the Internal Revenue
Code limits.
- ------------------------------------------------------------------------------------------------------------------------------------
Appendix VII -- State contract availability and/or
variations of certain features and benefits G-4
Statement of additional information
- --------------------------------------------------------------------------------
TABLE OF CONTENTS
Page
Tax Information 2
Unit Values 15
Equitable Life's Pending Name Change 15
Custodian and Independent Auditors 15
Distribution of the Contracts 15
Financial Statements 16
How to obtain an Equitable Accumulator(R) Elite(SM) Statement of Additional
Information for Separate Account No. 49
Send this request form to:
Equitable Accumulator(R) Elite(SM)
P.O. Box 1547
Secaucus, NJ 07096-1547
- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
Please send me an Equitable Accumulator(R) Elite(SM) SAI for Separate Account
No. 49 dated May 1, 2004.
- --------------------------------------------------------------------------------
Name:
- --------------------------------------------------------------------------------
Address:
- --------------------------------------------------------------------------------
City State Zip
X00698/Elite '04 Series
Income Manager(R)
Payout annuity contracts
PROSPECTUS DATED MAY 1, 2004
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.
- --------------------------------------------------------------------------------
WHAT IS INCOME MANAGER(R)?
Income Manager(R) contracts are payout annuity contracts issued by The
Equitable Life Assurance Society of the United States. They are designed to
provide retirement income. We offer two versions of the Income Manager(R)
payout annuity contract from which you may choose to receive your retirement
income. You may choose to receive income payable for a specified period
("period certain"). Or, you may choose to receive lifetime income payable for
at least a specified period ("life annuity with a period certain"). Under the
life annuity with a period certain contract, you may choose whether payments
are made on a single life or a joint and survivor life basis. In certain
circumstances, the forms of annuity available under your Income Manager(R)
contract may be limited.
Types of contracts. We offer the contracts for use as:
o A nonqualified annuity ("NQ") for after-tax contributions only.
o A traditional individual retirement annuity ("IRA").
o A GMIB Income Manager(R) payout annuity issued upon exercise of the
guaranteed minimum income benefit under an Accumulator(R) series contract
("GMIB Income Manager(R) contract"). A GMIB Income Manager(R) contract can
be used as an NQ and a traditional IRA, as well as a Roth IRA contract
("Roth IRA").
Generally, a contribution of at least $10,000 is required to purchase a
contract.
Fixed maturity options. We allocate your contributions to a series of fixed
maturity options to provide your income payments during the period certain.
Amounts allocated to each fixed maturity option will receive a fixed rate of
interest during the period certain. Interest is earned at a guaranteed rate we
set ("rate to maturity"). We make a market value adjustment (up or down) if you
make a withdrawal from a fixed maturity option before its maturity date.
A registration statement relating to this offering has been filed with the
Securities and Exchange Commission ("SEC"). This prospectus can be obtained
from the SEC's Website at http://www.sec.gov.
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.
X00676
Contents of this prospectus
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
INCOME MANAGER(R)
- --------------------------------------------------------------------------------
Index of key words and phrases 4
Who is Equitable Life? 5
How to reach us 6
Income Manager(R) at a glance -- key features 7
- --------------------------------------------------------------------------------
1. CONTRACT FEATURES AND BENEFITS 9
- --------------------------------------------------------------------------------
How you can purchase and contribute to your contract 9
Source of contributions 9
Owner and annuitant requirements 9
What are your investments under the contract? 9
What are your contract choices? 10
Life annuity with a period certain contract 10
Period certain contract 15
- --------------------------------------------------------------------------------
2. OTHER BENEFITS AND FEATURES OF THE CONTRACTS 17
- --------------------------------------------------------------------------------
How you can make your contributions 17
Your right to cancel within a certain number of days 17
Surrendering your contract to receive its cash value 17
When to expect payments 17
- --------------------------------------------------------------------------------
3. CHARGES 18
- --------------------------------------------------------------------------------
Withdrawal charges 18
Amounts applied from other contracts issued by
Equitable Life 18
Charges for state premium and other applicable taxes 18
Group or sponsored arrangements 18
Other distribution arrangements 19
- --------------------------------------------------------------------------------
4. PAYMENT OF DEATH BENEFIT 20
- --------------------------------------------------------------------------------
Your beneficiary 20
Your annuity payout options 20
- ----------------------
"We," "our" and "us" refer to Equitable Life. "Financial professional" means the
registered representative who is offering you this contract.
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
- --------------------------------------------------------------------------------
5. TAX INFORMATION 21
- --------------------------------------------------------------------------------
Overview 21
Taxation of nonqualified annuities 21
Special rules for NQ contracts issued in Puerto Rico 22
Individual retirement arrangements ("IRAs") 22
Traditional individual retirement annuities
("traditional IRAs") 23
Federal and state income tax withholding and
information reporting 28
- --------------------------------------------------------------------------------
6. MORE INFORMATION 29
- --------------------------------------------------------------------------------
About our fixed maturity options 29
About the separate account for the fixed maturity
options 29
About our general account 29
Other methods of payment 29
About payments under period certain contracts 30
Dates and prices at which contract events occur 30
About legal proceedings 30
About our independent accountants 30
Transfers of ownership, collateral assignments, loans,
and borrowing 30
Distribution of contracts 30
- --------------------------------------------------------------------------------
7. INCORPORATION OF CERTAIN DOCUMENTS BY REFERENCE 32
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
APPENDIX: MARKET VALUE ADJUSTMENT
EXAMPLE A-1
- --------------------------------------------------------------------------------
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 13
annuitant 9
beneficiary 20
business day 17
cash value 17
contract date 8
contract year 8
contribution 9
deferral period 12
fixed maturity amount 9
fixed maturity options cover
IRA cover
IRS 21
joint and survivor 10
joint owners 9
life annuity with a period certain 10
life contingent annuity 11
market adjusted amount 10
market value adjustment 10
maturity value 9
off maturity date 10
NQ cover
payout option 20
period certain 10
Processing Office 6
rate to maturity 10
Roth IRA cover
SEC cover
separate account 29
single life 10
traditional IRA cover
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 use different words, they have the same meaning in the 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 amount Guaranteed Period Amount
fixed maturity options Guarantee Periods
(Guaranteed Interest Rate Options ("GIRO's") in supple-
mental materials)
off maturity date payments Modal Payment Portion
market adjusted amount annuity account value
maturity date Expiration Date
rate to maturity Guaranteed Rate
- -------------------------------------------------------------------------------------------
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). The sole
shareholder of AXA Financial, Inc. is AXA, a French holding company for an
international group of insurance and related financial services companies. 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
$508.31 billion in assets as of December 31, 2003. For more than 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, NY 10104.
Effective on or about September 7, 2004, we expect, subject to regulatory
approval, to change the name of "The Equitable Life Assurance Society of the
United States" to "AXA Equitable Life Insurance Company." When the name change
becomes effective, all references in any current prospectus, prospectus
supplement or statement of additional information to "The Equitable Life
Assurance Society of the United States" will become references to "AXA
Equitable Life Insurance Company." Accordingly, all references to "Equitable
Life" or "Equitable" will become references to "AXA Equitable."
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 CONTRIBUTIONS SENT BY REGULAR MAIL:
- --------------------------------------------------------------------------------
Equitable Life
Income Manager(R)
P.O. Box 13014
Newark, NJ 07188-0014
- --------------------------------------------------------------------------------
FOR CONTRIBUTIONS SENT BY EXPRESS DELIVERY:
- --------------------------------------------------------------------------------
Equitable Life
Income Manager(R)
c/o Bank One, N.A.
300 Harmon Meadow Boulevard, 3rd Floor
Attn: Box 13014
Secaucus, NJ 07094
- --------------------------------------------------------------------------------
FOR ALL OTHER COMMUNICATIONS (E.G., REQUESTS FOR
WITHDRAWALS, OR REQUIRED NOTICES) SENT BY REGULAR MAIL:
- --------------------------------------------------------------------------------
Equitable Life
Income Manager(R)
P.O. Box 1547
Secaucus, NJ 07096-1547
- --------------------------------------------------------------------------------
FOR ALL OTHER COMMUNICATIONS (E.G., REQUESTS FOR
WITHDRAWALS, OR REQUIRED NOTICES) SENT BY EXPRESS
DELIVERY:
- --------------------------------------------------------------------------------
Equitable Life
Income Manager(R)
200 Plaza Drive, 4th Floor
Secaucus, NJ 07094
- -------------------------------------------------------------------------------
CUSTOMER SERVICE REPRESENTATIVES:
- -------------------------------------------------------------------------------
You may also use our toll-free number (1-800-789-7771) to speak with one of our
customer service representatives. Our customer service representatives are
available on each business day from 8:30 a.m. until 5:30 p.m., Eastern Time.
- --------------------------------------------------------------------------------
REPORTS WE PROVIDE:
- --------------------------------------------------------------------------------
o Statement of your contract values at the close of each calendar year and any
calendar quarter in which there was a financial transaction; and
o Written confirmation of financial transactions.
You should send all contributions, required notices, and requests to exercise
any of your rights or privileges to our Processing Office at the address above.
WE HAVE SPECIFIC FORMS THAT WE RECOMMEND YOU USE FOR THE FOLLOWING TYPES OF
REQUESTS:
(1) address changes;
(2) beneficiary changes;
(3) withdrawal requests; and
(4) contract surrender.
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 is normally the owner. If
there are joint owners, all must sign.
6 Who is Equitable Life?
Income Manager(R) at a glance -- key features
- -------------------------------------------------------------------------------
Income Manager(R)
(life annuity with
a period certain)
- --------------------------------------------------------------------------------
Income payments NQ -- Level or increasing payments.
IRA -- Level payments only.
- --------------------------------------------------------------------------------
Period certain You will receive payments for periods
ranging from 7 to 15 years depending on
the age of the annuitant.
- --------------------------------------------------------------------------------
Form of payment available Single life or joint and survivor.
- --------------------------------------------------------------------------------
Payments after the end of the Payments continue while the
period certain annuitant or joint annuitant is living.
- --------------------------------------------------------------------------------
Contribution amounts:
Initial minimum: o $10,000
Additional minimum: o $1,000 (subject to restrictions)
Maximum investment limitations may
apply.
- --------------------------------------------------------------------------------
Fixed maturity options o Up to 15 fixed maturity options with
maturities ranging from approximately 1 to
15 years.
o Each fixed maturity option offers a
guarantee of principal and interest rate if
you hold it to maturity.
o Principal guarantees.
-- If you make withdrawals from a fixed
maturity option before maturity, there will
be a market value adjustment due to
differences in interest rates. If you
withdraw only a portion of a fixed maturity
amount, this may increase or decrease any
value you have left in that fixed maturity
option. If you surrender your contract, a
market value adjustment may also apply.
- --------------------------------------------------------------------------------
Taxes Generally, earnings will be taxed at your
ordinary income tax rate when distributions are
made from your contract.
o NQ -- A portion of each payment is
generally not considered taxable income
until you have received a tax-free recovery
of your investment in the contract.
o IRA -- Generally, all amounts distributed
from a traditional IRA are taxable. Amounts
distributed from a Roth IRA are
generally taxable on an income-last basis
and may be eligible for tax-free treatment
under certain circumstances.
------------------------------------------------
This contract is intended to be a payout
annuity. However, there may be some
instances where you can delay beginning
payments, so IRS rules governing deferred
annuity payments could apply.
- --------------------------------------------------------------------------------
Death benefit A death benefit is provided if the
annuitant dies before the first
payment is made or if a single sum is
elected within one year following the
annuitant's death. There is no death
benefit if the annuitant dies after the
certain period.
- --------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------
Income Manager(R) GMIB Income
(period certain) Manager(R) Contract
- ---------------------------------------------------------------------------------------------------------------
Income payments NQ and IRA -- Level payments only. NQ and IRA (traditional and Roth) --
Level payments only.
o Certain NQ and IRA contracts may
be eligible for increasing payments.
- ---------------------------------------------------------------------------------------------------------------
Period certain o Generally, you will receive at least
10 years of payments. Depending
on the annuitant's age at GMIB
exercise and the issue date and
type of your Accumulator(R) contract,
the period may be longer or shorter.
o The period certain is specified in
your Accumulator(R) contract and
cannot be changed.
- ---------------------------------------------------------------------------------------------------------------
Form of payment available Single life only. Single life or joint and survivor.
- ---------------------------------------------------------------------------------------------------------------
Payments after the end of the None Payments continue while the
period certain annuitant or joint annuitant is living.
- ---------------------------------------------------------------------------------------------------------------
Contribution amounts: The annuity account value applied
from your Accumulator(R) series
Initial minimum: o $10,000 contract upon GMIB exercise.
Additional minimum:
Additional contributions are not
o Not permitted permitted.
Maximum investment limitations may
apply.
- ---------------------------------------------------------------------------------------------------------------
Fixed maturity options
- ---------------------------------------------------------------------------------------------------------------
Taxes
- ---------------------------------------------------------------------------------------------------------------
Death benefit A death benefit is provided if the A death benefit is provided if the
annuitant dies before the end of the annuitant dies or if a single sum is
period certain. elected within one year following the
annuitant's death. There is no death
benefit if the annuitant dies after the
certain period.
- ---------------------------------------------------------------------------------------------------------------
Income Manager(R) at a glance -- key features 7
- ------------------------------------------------------------------------------------------------------------------------------------
Access to your money o Withdrawals. o Withdrawals. o Withdrawals
during the period
certain o Contract surrender. o Contract surrender. o Contract surrender.
You may also incur income tax You may also incur income You may also incur income tax
and a penalty tax. tax and a penalty tax. and a penalty tax.
You cannot take a withdrawal A market value adjustment You cannot take a withdrawal
from, or surrender, your life may apply. from, or surrender your life
contingent annuity. contingent annuity.
Withdrawals are subject to market Withdrawals are subject to market
value adjustment and may reduce your value adjustment and may reduce your
remaining payments and shorten any remaining payments and shorten any
remaining certain period. The remaining certain period. The
payment start date under the life payment start date under the life
contingent annuity will begin at an contingent annuity will begin at an
earlier date. earlier date.
- -----------------------------------------------------------------------------------------------------------------------------------
Charges o We deduct a charge designed to o We deduct a charge designed to o We deduct a charge designed to
approximate certain taxes that approximate certain taxes that approximate certain taxes that
may be imposed upon us, such as may be imposed upon us, such as may be imposed upon us, such as
premium taxes in your state. We premium taxes in your state. We premium taxes in your state. We
deduct this charge from your deduct this charge from your deduct this charge only to the
contributions. contributions. extent that the annual income
provided by this contract after
o During the first seven contract o During the first seven contract the deduction is at least equal
years following a contribution, years, a charge will be to the income that would be
a charge will be deducted from deducted from amounts that you provided by the application of
amounts that you withdraw that withdraw. The charge begins your Accumulator(R) Benefit
exceed 10% of your account at 7% in the first contract Base to guaranteed GMIB annuity
value. We use the account value year. It declines each year purchase factors.
at the beginning of each contract to 1% in the seventh contract
year to calculate the 10% amount year. There is no withdrawal o There is no charge on amounts you
available. The charge begins at charge in the eighth and later withdraw.
7% in the first contract year contract years.
following a contribution. It
declines each year to 1% in the o There is no free withdrawal
seventh contract year. There is amount.
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.
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
Annuitant NQ and IRA level payments: 45 - 83 For contracts purchased in connection
issue ages NQ increasing payments: 53-1/2 - 83 with the proceeds of an
Different ages may apply depending Accumulator(R) series contract
on when annuity payments start. that was issued:*
pre-May 1997: 60-83
May 1997-pre-May 1999: 35-90
May 1999-March 2000 and later: 35-83
March 2000 and later: 35-85
* Actual available issue ages vary
depending on your Accumulator(R)
series contract and the annuitant's
age at the time of its issue.
- ------------------------------------------------------------------------------------------------------------------------------------
The above is not a complete description of all material provisions of the
contract. In some cases restrictions or exceptions apply. Also, all features of
the contract 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.
8 Income Manager(R) at a glance -- key features
1. Contract features and benefits
- --------------------------------------------------------------------------------
HOW YOU CAN PURCHASE AND CONTRIBUTE TO YOUR CONTRACT
o For GMIB Income Manager(R) contracts, you can only purchase a contract by
exercising your GMIB benefit in accordance with your Accumulator(R) series
contract, even if the Accumulator(R) account value is less than $10,000;
no additional contributions are permitted.
o For all other contracts, you may purchase your contract by making payments to
us we call "contributions." We require a contribution of at least $10,000
for you to purchase a contract. Under life annuity with a period certain
contracts, you may make additional contributions subject to the
limitations as described under "Additional contributions" later in this
Prospectus.
SOURCE OF CONTRIBUTIONS (NOT APPLICABLE TO GMIB INCOME MANAGER(R) CONTRACT)
NQ contracts. We will accept only contributions made with after-tax money. You
may make your contributions by check or by transfer of your entire contract
value in a tax-deferred exchange under Section 1035 of the Internal Revenue
Code.
Traditional IRA contracts. Contributions may be made from:
o Eligible rollover distributions from TSA contracts or other 403(b)
arrangements, qualified plans, and governmental employer 457(b) or "EDC"
plans.
o Rollovers from another traditional individual retirement arrangement.
o Direct custodian-to-custodian transfers from another traditional individual
retirement arrangement.
See "Tax information" later in this Prospectus for a more detailed discussion
of sources of contributions and contribution limitations. We may refuse to
accept any contribution if the sum of all contributions under all Income
Manager(R) contracts with the same annuitant would then total more than
$1,500,000. We may also refuse to accept any contributions if the sum of all
contributions under all Equitable Life annuity payout 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" later in this Prospectus.
OWNER AND ANNUITANT REQUIREMENTS
NQ contracts. The annuitant can be different from the contract owner. A joint
owner may also be named provided each owner is of legal age. Only natural
persons can be joint owners. This means that an entity such as a corporation or
a trust cannot be a joint owner.
- --------------------------------------------------------------------------------
The "annuitant" is the person who is the measuring life for determining
contract benefits. The annuitant is not necessarily the contract owner. Where
the owner and annuitant are different, the annuitant must be the named
successor owner. For GMIB Income Manager(R) contracts the owner and annuitant
must be the same as under your IRA or NQ Accumulator(R) series contract.
- --------------------------------------------------------------------------------
IRA contracts. The owner and the annuitant must be the same person. Joint
owners are not permitted. Your spouse may be named as joint annuitant. In some
cases, an IRA contract may be held in a custodial individual retirement account
for the benefit of the individual annuitant.
WHAT ARE YOUR INVESTMENTS UNDER THE CONTRACT?
FIXED MATURITY OPTIONS
To provide your income payments during the period certain, we allocate your
contributions to fixed maturity options that mature in consecutive date order.
When we allocate your contributions to the fixed maturity options they become
part of a non-unitized separate account. They accumulate interest at a rate to
maturity for each fixed maturity option. The total amount allocated to and
accumulated in each fixed maturity option is called the "fixed maturity
amount."
The rate to maturity you will receive for each fixed maturity amount is the
interest rate in effect for new contributions allocated to that fixed maturity
option on the date we apply your contribution. If you make any withdrawals 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 will discuss market value adjustment
below and in greater detail under "More information" later in this Prospectus.
For applications we receive under certain types of transactions, we may offer
you the opportunity to lock in rates to maturity on contributions.
On the maturity date of each of your fixed maturity options, your fixed
maturity amount (assuming you have not made any withdrawals) will equal amounts
originally allocated to each fixed maturity option plus interest, at the rate
to maturity for that contribution, to the date of 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. It will reflect the mar-
Contract features and benefits 9
ket value adjustment that we would make if you were to withdraw all of your
fixed maturity amount on the date of the report. We call this your "market
adjusted amount."
Rates to maturity and price per $100 of maturity value. We can determine the
amount required to be allocated to each fixed maturity option in order to
produce specified maturity values. For example, we can tell you how much you
need to allocate per $100 of maturity value.
Guaranteed rates to maturity for new allocations as of February 13, 2004 and
the related price per $100 of maturity value were as follows:
- ----------------------------------------------------------------
Fixed maturity
options with
February 15th Rates to Price
maturity date of maturity as per $100 of
maturity year of February 13, 2004 maturity value
- ----------------------------------------------------------------
2005 3.00% $ 97.06
2006 3.00% $ 94.24
2007 3.00% $ 91.49
2008 3.00% $ 88.83
2009 3.00% $ 86.23
2010 3.00% $ 83.72
2011 3.18% $ 80.29
2012 3.47% $ 76.09
2013 3.70% $ 72.07
2014 3.90% $ 68.17
2015 3.87% $ 65.82
2016 3.87% $ 63.37
2017 3.87% $ 61.00
2018 3.87% $ 58.73
2019 3.87% $ 56.54
- ----------------------------------------------------------------
Market value adjustment. If you make any withdrawals (including surrender of
your contract or when we make deductions for withdrawal 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 we 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 explanation of how we calculate the market value adjustment, and
information concerning our general account under "More information" later in
this Prospectus. We provide an example of how we calculate the market value
adjustment in the Appendix at the end of this Prospectus.
SEPARATE ACCOUNT FOR 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. We provide
additional information about this separate account under "More information"
later in this Prospectus.
Off maturity date payments. Generally, your payments will be made on February
15th as each fixed maturity option matures. You may instead choose to have your
payments made in a month other than February. We refer to payments we make
annually in any month other than February as well as monthly or quarterly
payments, as payments made "off maturity dates." If you choose to have your
payments made off maturity dates, we will be required to begin making your
payments before the maturity date of a fixed maturity option. In planning for
these payments we will allocate a portion of your initial contribution to the
separate account, but not to the fixed maturity options contained in the
separate account. We will credit these amounts with interest at rates that will
not be less than 3%.
After that, as each fixed maturity option expires we will transfer your
maturity value from the expired fixed maturity option and hold the maturity
value in the separate account. We will credit interest to these amounts at the
same rate as the rate to maturity that was credited in the expired fixed
maturity option. These amounts will then be used to provide for payments off
maturity dates during the period certain.
- --------------------------------------------------------------------------------
Whether you choose monthly, quarterly, or annual payments, your payments will
be made on the 15th day of the month.
- --------------------------------------------------------------------------------
We will not make a market value adjustment to the amounts held in the separate
account to provide for payments off maturity dates.
WHAT ARE YOUR CONTRACT CHOICES?
We offer two versions of the Income Manager(R) payout annuity contracts from
which you may choose to receive your retirement income, a "life annuity with a
period certain" and a "period certain" annuity. For GMIB Income Manager(R)
contracts, a period certain annuity is not available. We discuss both versions
below.
LIFE ANNUITY WITH A PERIOD CERTAIN CONTRACT
This payout annuity contract provides you with guaranteed payments during the
period certain. When the period certain ends you will continue to receive
payments for as long as an annuitant is living. Payments based solely on the
life of one annuitant are called "single life" payments. You may also elect to
receive "joint and survivor" payments that are based on the lives of an
annuitant and a joint annuitant. These payments will continue as long as one of
the annu-
10 Contract features and benefits
itants is living. Payments during the period certain are designed to pay out
your entire account value by the end of the period certain.
For GMIB Income Manager(R) contracts, if the annuitant's age at issue is 90, a
period certain is not available. Instead, you will receive payments for the
life of the annuitant, only
- --------------------------------------------------------------------------------
"Single life" payments are made to you as long as the annuitant is living.
"Joint and survivor" payments continue as long as either annuitant is living.
For IRA contracts, if you are married, the joint annuitant must be your spouse.
- --------------------------------------------------------------------------------
For annuitant ages at which the contracts are available see the chart under
"Your period certain" below.
ADDITIONAL CONTRIBUTIONS
If your annuity payments are set to begin on February 15, 2005 or later, and
(for NQ contracts) the annuitant is age 78 or younger, you may make additional
contributions of at least $1,000 at any time up until 15 days before your
payments actually begin. If the annuitant is over age 78 you can make
additional contributions only during the first contract year.
Under IRA contracts we will accept additional contributions that are "regular"
contributions, rollover contributions or direct transfers. Additional "regular"
contributions may no longer be made after the annuitant is age 70-1/2. If you
make a direct transfer or rollover contribution after you turn age 70-1/2 you
must have taken the required minimum distribution for the year before the
contribution is applied to this contract. See "Tax information" later in this
Prospectus.
If you are using the proceeds from another type of contract issued by us to
purchase this contract, including a GMIB Income Manager(R) contract, you will
not be permitted to make additional contributions.
HOW WE ALLOCATE YOUR CONTRIBUTIONS
We determine the allocation of your contributions based on a number of factors.
They are:
o the amount of your contribution;
o the form of payments;
o the age and sex of the annuitant (and the age and sex of the joint annuitant,
if joint and survivor annuity payments are elected);
o the frequency of payments; and
o the period certain.
We then allocate your initial contribution among the fixed maturity options,
the separate account if we need to make payments to you off maturity dates, and
the "life contingent annuity." We will allocate your additional contributions
in the same manner. Additional contributions will increase the level of all
future payments. You may not change this allocation.
- --------------------------------------------------------------------------------
The life contingent annuity continues the payments after the period certain
ends.
- --------------------------------------------------------------------------------
PAYMENTS
NQ contracts. If you are age 45 (35 for GMIB Income Manager(R) contracts) or
older, you may elect to receive level payments. You will receive level payments
during the period certain and under the life contingent annuity. However, if
you are younger than age 59-1/2, there are tax issues that you should consider
before you purchase a contract. If you are age 53-1/2 or older you may instead
elect to receive payments that increase. However, your payments may not start
before you are age 59-1/2. Deferral of payments is not available for GMIB Income
Manager(R) contracts. Such payments will increase by 10% every three years
during the period certain on each third anniversary of the date annuity
payments begin.
If you are using the proceeds from an Accumulator(R) series contract issued in
May 1997 or later to purchase an NQ GMIB Income Manager(R) contract, only level
payments are available.
After the end of the period certain, we will continue your payments under the
life contingent annuity while the annuitant or joint annuitant is living.
Payments continue throughout the annuitant's lifetime (or the lifetime of the
joint annuitant, if joint and survivor payments are elected) on the same
payment schedule (either monthly, quarterly, or annually) as the payments you
received during the period certain.
- --------------------------------------------------------------------------------
The portion of your contribution allocated to the life contingent annuity does
not have a cash value or an account value and, therefore, does not provide for
withdrawals or surrender.
- --------------------------------------------------------------------------------
There is no death benefit provided under the life contingent annuity and
payments are made to you only if the annuitant (or joint annuitant) is living
when the payments are scheduled to begin. These payments are only made during
the annuitant's lifetime and, if applicable, the lifetime of a joint annuitant.
Therefore, you should consider the possibility that no payments will be made to
you under the life contingent annuity if the annuitant (or joint annuitant)
does not survive to the date payments are to begin.
You may elect single life or joint and survivor payments. Joint and survivor
payments are available on a 100%, one-half or two-thirds to survivor basis. If
you elect increasing payments under NQ contracts, your first payment under the
life contingent annuity will be 10% greater than the final payment under the
period certain. After the period certain we will increase your payments
annually on each anniversary of the payment start date under the life
contingent annuity. We will base this increase on the annual increase in the
Consumer Price Index, but it will never be greater than 3% per year.
IRA and Roth IRA GMIB contracts. Generally, only level payments are available
under IRA contracts. You will receive level payments during the period certain
and under the life contingent annuity. If you are using the proceeds from an
Accumulator(R) series contract issued prior to May 1997 to purchase a GMIB
Income Manager(R) contract (traditional or Roth IRA), both increasing and level
payments are available. If you elect increasing payments, during the period
certain, payments are designed to increase by 10% every three years on each
third anniversary of the payment start date. After the end of the period
certain, your first payment under the life contingent annuity will be 10%
greater than the final payment made under the period certain. Thereafter,
payments will increase annually on each anniversary of the payment start date
under the life contingent annuity based on the
Contract features and benefits 11
annual increase, if any, in the Consumer Price Index, but in no event greater
than 3% per year. For traditional IRA contracts, if at any time your payment
would be less than the minimum amount required to be distributed under required
minimum distribution rules, we will notify you of the difference. You will have
the option to have an additional amount withdrawn from your contract. An
adjustment will be made to future scheduled payments. Or, you may take the
amount from other traditional IRA funds you may have.
MODE (FREQUENCY) OF PAYMENT
Under Income Manager(R) contracts you may choose to receive payments monthly,
quarterly or annually. If you are using the proceeds from an Accumulator(R)
series contract issued in May 1997 or later to purchase a GMIB Income
Manager(R) contract, only annual payments are available. Whether you choose
monthly, quarterly or annual payments, you will usually begin receiving
payments one payment period from the contract date, unless you elect otherwise
as described under "Off maturity date payments" earlier in this Prospectus.
Your payments will always be made on the 15th day of the month. For instance,
if you choose annual payments, we make your first payment one year from the
issue date of the Income Manger contract. If you are at least age 59-1/2 you may
elect to defer the date your payments will start. Generally, you may defer
payments for a period of up to 72 months. This is called the deferral period.
Deferral of the payment start date permits you to lock in rates at a time when
you may consider current rates to be high, while permitting you to delay
receiving payments if you have no immediate need to receive income under your
contract. Deferral is not available under GMIB Income Manager(R) contracts or
when the owner and annuitant are different under Income Manager(R) contracts,
respectively.
- --------------------------------------------------------------------------------
The deferral period together with the period certain may be referred to as a
"liquidity period." Unlike traditional life annuities that provide periodic
payments, you will be able to make withdrawals before the end of the period
certain. You may also choose to surrender your contract for its cash value
while keeping the life contingent annuity in effect.
- --------------------------------------------------------------------------------
Before you decide to defer payments, you should consider the fact that the
amount of income you purchase is based on the rates to maturity in effect on
the date we allocate your contribution. Therefore, if rates rise during the
deferral period, your payments may be less than they would have been if you had
purchased a contract at a later date. Deferral of the payment start date is not
available if the annuitant is older than age 80. Under IRA contracts, if your
deferred payment start date is after you are age 70-1/2, you should consider the
effect that deferral may have on your required minimum distributions.
YOUR PERIOD CERTAIN
Level payments for NQ and IRA Income Manager(R) contracts. Under level
payments, you may select a period certain of not less than 7 years nor more
than 15 years. The maximum period certain available based on the age of the
annuitant when your Income Manager(R) contract is issued is as follows:
NQ CONTRACTS
- --------------------------------------------------------------
Annuitant's age at issue* Maximum period certain
- -------------------------------------------------------------
45 through 70 15 years
- --------------------------------------------------------------
71 through 75 85 less age at issue
- --------------------------------------------------------------
76 through 80 10 years
- --------------------------------------------------------------
81 through 83 90 less age at issue
- --------------------------------------------------------------
IRA CONTRACTS
- ---------------------------------------------------------------
Annuitant's age at issue* Maximum period certain
- ---------------------------------------------------------------
45 through 70 15 years
- ---------------------------------------------------------------
71 through 78 85 less age at issue
- ---------------------------------------------------------------
79 through 83 7 years
- ---------------------------------------------------------------
Level payments for NQ GMIB, IRA GMIB and Roth IRA GMIB Income Manager(R)
contracts. Under level payments for these contracts, you may select a period
certain of not less than 7 years nor more than 10 years. The maximum period
certain available based on the age of the annuitant when your GMIB Income
Manager(R) contract is issued is shown in the tables below. However, if the
annuitant's age at issue is age 84 or older, the only period certain available
is defined in the chart below.
NQ GMIB INCOME MANAGER(R) CONTRACTS
- -----------------------------------------------------------------
Contracts purchased in connection with the proceeds from a
pre-May 1997 Accumulator(R) series contract
- -----------------------------------------------------------------
Annuitant's age at issue* Maximum period certain
- -----------------------------------------------------------------
60 through 80 10 years
- -----------------------------------------------------------------
81 through 83 90 less issue age
- -----------------------------------------------------------------
- -----------------------------------------------------------------
Contracts purchased in connection with the proceeds from a
May 1997-pre-May 1999 Accumulator(R) series contract
- -----------------------------------------------------------------
Annuitant's age at issue* Maximum period certain
- -----------------------------------------------------------------
35 through 80 10 years
- -----------------------------------------------------------------
81 through 90 90 less issue age
- -----------------------------------------------------------------
- -----------------------------------------------------------------
Contracts purchased in connection with the proceeds from a
May 1999-pre-March 2000 Accumulator(R) series contract
- -----------------------------------------------------------------
Annuitant's age at issue* Maximum period certain
- -----------------------------------------------------------------
35 through 80 10 years
- -----------------------------------------------------------------
81 through 83 90 less issue age
- -----------------------------------------------------------------
- -----------------------------------------------------------------
Contracts purchased in connection with the proceeds from a
March 2000 and later contract
- -----------------------------------------------------------------
Annuitant's age at issue* Maximum period certain
- -----------------------------------------------------------------
35 through 80 10 years
- -----------------------------------------------------------------
81 through 85 90 less issue age
- -----------------------------------------------------------------
IRA AND ROTH IRA GMIB INCOME MANAGER(R) CONTRACTS
- -----------------------------------------------------------------
Contracts purchased in connection with the proceeds from a
pre-May 1997 Accumulator(R) series contract
- -----------------------------------------------------------------
Annuitant's age at issue* Maximum period certain
- -----------------------------------------------------------------
60 through 75 10 years
- -----------------------------------------------------------------
76 through 78 85 less issue age
- -----------------------------------------------------------------
79 through 83 7 years
- -----------------------------------------------------------------
- -----------------------------------------------------------------
Contracts purchased in connection with the proceeds from a
May 1997-pre-May 1999 Accumulator(R) series contract
- -----------------------------------------------------------------
Annuitant's age at issue* Maximum period certain
- -----------------------------------------------------------------
35 through 75 10 years
- -----------------------------------------------------------------
76 through 77 85 less issue age
- -----------------------------------------------------------------
78 through 83 7 years
- -----------------------------------------------------------------
12 Contract features and benefits
- -----------------------------------------------------------------
Contracts purchased in connection with the proceeds from a
May 1997-pre-May 1999 Accumulator(R) series contract
- -----------------------------------------------------------------
Annuitant's age at issue* Maximum period certain
- -----------------------------------------------------------------
84 through 90 90 less issue age
- -----------------------------------------------------------------
- -----------------------------------------------------------------
Contracts purchased in connection with the proceeds from a
post May 1999-March 2000 or later Accumulator(R) series
contract
- -----------------------------------------------------------------
Annuitant's age at issue* Maximum period certain
- -----------------------------------------------------------------
35 through 75 10 years
- -----------------------------------------------------------------
76 through 77 85 less issue age
- -----------------------------------------------------------------
78 through 83 7 years
- -----------------------------------------------------------------
- -----------------------------------------------------------------
Contracts purchased in connection with the proceeds from a
March 2000 and later Accumulator(R) series contract
- -----------------------------------------------------------------
Annuitant's age at issue* Maximum period certain
- -----------------------------------------------------------------
35 through 75 10 years
- -----------------------------------------------------------------
76 through 77 85 less issue age
- -----------------------------------------------------------------
78 through 83 7 years
- -----------------------------------------------------------------
84 through 85 90 less issue age
- -----------------------------------------------------------------
* For joint and survivor payments, the period certain is based on the age of
the younger annuitant.
The minimum and maximum period certain will be reduced by each year you defer
the date your payments will start. Deferral is not available under GMIB Income
Manager(R) contracts.
Increasing payments. Under NQ contracts (other than NQ GMIB Income Manager(R)
contracts, where increasing payments are generally not available) if you elect
increasing payments, you do not have a choice as to the period certain. Based
on the age of the annuitant when your contract is issued, your period certain
will be as follows:
- -----------------------------------------------------------------
Annuitant's age at issue* Period certain
- -----------------------------------------------------------------
53-1/2 through 70 15 years
- -----------------------------------------------------------------
71 through 75 12 years
- -----------------------------------------------------------------
76 through 80 9 years
- -----------------------------------------------------------------
81 through 83 6 years
- -----------------------------------------------------------------
If you elect increasing payments and defer the date payments
will start, your period certain will be as follows:
- -----------------------------------------------------------------
Period certain based
on deferral period
- -----------------------------------------------------------------
Annuitant's age 1-36 37-60 61-72
at issue* months months months
- -----------------------------------------------------------------
59-1/2 through 70 12 years 9 years 9 years
- -----------------------------------------------------------------
71 through 75 9 years 9 years n/a
- -----------------------------------------------------------------
76 through 80 6 years 6 years n/a
- -----------------------------------------------------------------
81 through 83 n/a n/a n/a
- -----------------------------------------------------------------
For GMIB Income Manager(R) contracts (both NQ and IRA and Roth IRA) issued with
the proceeds from a pre-May 1997 Accumulator(R) series contract, increasing
payments are available, as follows:
- ------------------------------------------------------------------
Annuitant's age at issue* Maximum period certain
- ------------------------------------------------------------------
60 through 70 15 years
- ------------------------------------------------------------------
71 through 75 12 years
- ------------------------------------------------------------------
76 through 80 9 years
- ------------------------------------------------------------------
81 through 83 6 years
- ------------------------------------------------------------------
For all other NQ, IRA (including Roth IRA) and GMIB Income Manager(R)
contracts, increasing payments are not available. For all other IRA contracts,
increasing payments are not available.
The annuitant ages at issue in the above table are also the annuitant ages for
which the contracts are available. Different ages may apply if you purchase a
contract by exercising a benefit under another type of contract that we issue.
* For joint and survivor payments, the period certain is based on the age of
the younger annuitant.
PURCHASE RESTRICTIONS FOR JOINT AND SURVIVOR ANNUITY PAYMENTS
If you elect payments on a joint and survivor basis;
o the joint annuitant must also be the beneficiary under the contract. Under
IRA contracts, the joint annuitant must be your spouse;
o neither the annuitant nor the joint annuitant can be younger than age 45 (age
35 for GMIB Income Manager(R)), or over age 83 unless it is a GMIB Income
Manager(R) contract, as described above then neither can be over the
maximum age at issue shown; and
o under level payments the joint and 100% to survivor form is only available
for the longest period certain we permit.
EXAMPLE OF PAYMENTS
We provide the chart below to illustrate level payments under the contract
using the following assumptions:
(1) a male age 70 (who is both the contract owner and the annuitant);
(2) single life annuity payments;
(3) a contribution of $100,000;
(4) no additional contributions; and
(5) a period certain of 15 years.
If you had a contract date of February 15, 2004, based on rates to maturity on
that date, an election of either monthly, quarterly, or annual payments with
payments starting one payment period from the contract date, the following
level payments would be provided:
- -----------------------------------------------------------------
Payment period Monthly Quarterly Annual
- -----------------------------------------------------------------
Start date 3/15/04 5/15/04 2/15/05
- -----------------------------------------------------------------
Payment $610.45 $1,840.34 $7,525.61
- -----------------------------------------------------------------
WITHDRAWALS
After the first contract year and before the end of the period certain, you may
take withdrawals from your account value. You may take one withdrawal per
contract year at any time during the contract year. The minimum amount you may
withdraw at any time is $1,000. If you request to withdraw more than 90% of
your current "cash value" we will treat it as a request to surrender your
contract for its cash value. See "Surrendering your contract to receive its
cash value" later in this Prospectus.
- --------------------------------------------------------------------------------
Your account value is the sum of your market adjusted amounts in each fixed
maturity option plus your amounts held in the separate account to provide for
payments off maturity dates. Your cash value is equal to your account value
minus any withdrawal charge. If the life contingent annuity is already in
effect, you may not make any withdrawals.
- --------------------------------------------------------------------------------
Withdrawals in excess of a 10% free withdrawal amount may be subject to a
withdrawal charge. There is no free withdrawal amount if your
Contract features and benefits 13
contract is surrendered for its cash value. For GMIB Income Manager(R)
contracts, withdrawal charges do not apply, and, therefore, the free withdrawal
amount is not applicable. Amounts withdrawn from a fixed maturity option before
its maturity date will result in a market value adjustment.
ALLOCATION OF WITHDRAWALS
We will subtract your withdrawal from all remaining fixed maturity options to
which your account value is allocated as well as from amounts held in the
separate account to provide for payments off maturity dates. As a result we
will reduce the amount of your payments and the length of your period certain.
We will also begin making payments to you under the life contingent annuity at
an earlier date. In order to achieve this result we will withdraw additional
amounts over the amount of the withdrawal you requested. We will withdraw these
amounts from the fixed maturity options and from amounts held in the separate
account to provide for payments off maturity dates and allocate them to the
life contingent annuity. The exact additional amount we withdraw will depend on
how much is necessary to assure that the same pattern of payments will continue
in reduced amounts for the annuitant's life, and if it applies, the life of the
joint annuitant. If you have elected increasing payments, the first increase in
your payments will take place no later than the date of the next planned
increase.
EXAMPLE
The example below illustrates the effect of a withdrawal based on:
(1) a single contribution of $100,000 made on February 13, 2004;
(2) level annual payments of $7,097.20 to be made on February 15th of each
year;
(3) joint and two-thirds to survivor payments for a male and female, both
age 70;
(4) a period certain of 15 years; and
(5) a withdrawal made at the beginning of the fourth contract year of 25% of
an account value of $67,744.32 when the annuitants are age 73.
The requested withdrawal amount would be $16,936.08 ($67,744.32 x .25). In this
case, $6,774.43 ($67,744.32 x .10) would be the free withdrawal amount and
could be withdrawn free of a withdrawal charge. The balance of $10,161.65
($16,936.08 - $6,774.43) would be considered a withdrawal of a part of the
contribution of $100,000. This contribution would be subject to a 4.0%
withdrawal charge of $406.47 ($10,161.65 x .04). The account value after the
withdrawal is $50,401.77 ($67,744.32 - $16,936.08 - $406.47). The payments
would be reduced to $5,880.11 and the remaining period certain would be reduced
to 10 years from 12.
DEATH BENEFIT -- FOR ALL CONTRACTS OTHER THAN GMIB INCOME MANAGER(R) CONTRACTS
When the annuitant dies before payments begin
Generally, when we receive satisfactory proof of the annuitant's death before
annuity payments begin we will pay the death benefit to the "beneficiary" named
in your contract. See "Your beneficiary" later in this Prospectus. If the joint
owner who is also the annuitant dies, we will consider the surviving owner to
be the beneficiary, taking the place of any other beneficiary designations.
We determine the amount of the death benefit payable to your beneficiary as of
the date we receive satisfactory proof of the annuitant's death and any
required instructions for the method of payment and any required forms
necessary to effect payment. The death benefit is the greater of:
(1) your account value; and
(2) the sum of the fixed maturity amounts in each fixed maturity option plus
any amounts held in the separate account to provide for payments off
maturity dates.
However, if you are the annuitant and your spouse is the joint owner or the
designated beneficiary under the contract, your spouse may elect to receive the
payments instead of taking the death benefit if payments have not been
deferred, or payments are scheduled to begin within one year. The payments will
then begin on the scheduled date. We will not make any payments under the life
contingent annuity after the annuitant's death unless you have elected the
joint and survivor form of payments. If you elect joint and one-half or joint
and two-thirds to survivor payments, at the death of either annuitant, we will
reduce the payments by one-half or one-third, whichever applies.
- --------------------------------------------------------------------------------
A death benefit is never payable under the life contingent annuity. The death
benefit applies only during the period certain.
- --------------------------------------------------------------------------------
When the annuitant dies after the annuity payments begin
If the annuitant dies after the payments begin, we will continue to make
payments during the period certain to either the joint owner or the designated
beneficiary, whichever applies. If payments continue to the beneficiary, he or
she will be deemed the successor owner. If there is a joint owner, the
surviving joint owner will be deemed the beneficiary, superseding any other
beneficiary designation. The payments will be made on the same schedule that
was in effect before the annuitant's death and will terminate at the end of the
period certain. If you elected joint and survivor payments under the life
contingent annuity, the payments will be made as long as one of the annuitants
is living. If you elected joint and one-half or joint and two-thirds to
survivor payments, at the death of either annuitant, we will reduce the
payments by one-half or one-third, whichever applies.
At the beneficiary's option, payments during the period certain may be
discontinued and paid in a single sum. If the single sum is elected within one
year after the annuitant's death, the single sum will be paid as a death
benefit and will be equal to the greater of:
(1) the account value; and
(2) the sum of the fixed maturity amounts in each fixed maturity option, plus
any amounts held in the separate account to provide for payments off
maturity dates.
If a single sum is elected and there is a joint annuitant, we will begin making
payments to you under the life contingent annuity at an earlier date. These
payments will be made in reduced amounts to
14 Contract features and benefits
compensate for the earlier start date. If you elected joint and one-half or
joint and two-thirds to survivor payments, at the death of either annuitant, we
will reduce the payments by one-half or one-third, whichever applies.
When the NQ contract owner who is not the annuitant dies after the annuity
payments begin.
If your death occurs after annuity payments begin, payments will continue to be
made during the period certain to the designated beneficiary, or in the case of
joint owners, to the surviving owner. In either case this person becomes the
new contract owner. The payments will be made on the same payment schedule that
was in effect before your death. After the period certain, lifetime payments
will be made under the life contingent annuity for as long as the annuitant (or
joint annuitant) is living.
If a single sum is elected, we will begin making payments to you under the life
contingent annuity at an earlier date. The lump sum is treated as a withdrawal.
See the discussion of withdrawals earlier in this section. These payments will
be made in reduced amounts to compensate for the earlier start date. When the
life contingent annuity is in effect and one of the joint annuitants dies, if
you elected joint and one-half or joint and two-thirds to survivor payments, at
the death of either annuitant, we will reduce the payments by one-half or
one-third, whichever applies.
DEATH BENEFIT -- FOR ALL GMIB INCOME MANAGER(R) CONTRACTS
For purposes of determining the death benefit in connection with any GMIB
Income Manager(R) contract, the annuity payments are considered to have begun
at issue of the contract.
When the annuitant dies
In general, we will continue to make payments during the period certain as
described earlier in this section under "Death benefit -- for all contracts
other than the GMIB Income Manager(R) contracts" under "When the annuitant dies
after the annuity payments begin." However, if there is a non-owner joint
annuitant, we will continue to make payments to the original owner until the
death of the joint annuitant.
If a single sum is elected and there is a joint annuitant, we will begin making
payments to you under the life contingent annuity at an earlier date. The lump
sum is treated as a withdrawal. See the discussion of withdrawals earlier in
this section. These payments will be made in reduced amounts to compensate for
the earlier start date.
When the NQ GMIB contract owner who is not the annuitant dies
We will continue to make annuity payments during the period certain as
described earlier in this section under "Death benefit -- for all contracts
other than the GMIB Income Manager(R) contracts" under "When the NQ contract
owner who is not the annuitant dies after the annuity payments begin."
SURRENDERING YOUR LIFE ANNUITY WITH PERIOD CERTAIN CONTRACT
You may surrender your contract for its cash value at any time during the
period certain and receive lifetime payments after that under the life
contingent annuity. Once your contract is surrendered, the date your payments
are to start under the life contingent annuity will be moved forward to the
date when you were supposed to receive the next payment under the period
certain. However, your payments will be made in reduced amounts. Once your
contract is surrendered, we will return it to you with a notation that the life
contingent annuity is still in effect. You may not surrender the life
contingent annuity.
PERIOD CERTAIN CONTRACT (NOT AVAILABLE IF YOU ARE PURCHASING A GMIB INCOME
MANAGER(R) CONTRACT)
You may purchase the period certain contract if you are age 59-1/2 or older. The
annuitant must be at least age 59-1/2, but not older than age 78. This contract
provides you with level guaranteed payments for a period certain that you
select. The minimum period certain you may select is 7 years and the maximum
period certain is 15 years. If the annuitant is over age 70 when the contract
is issued, the maximum period certain you may select is 85 less the annuitant's
age when the contract is issued.
ADDITIONAL CONTRIBUTIONS
Additional contributions are not permitted under the contract.
HOW WE ALLOCATE YOUR CONTRIBUTIONS
Based on the amount of your single contribution and the period certain you
select, we allocate your contribution among the fixed maturity options and, if
necessary, to the separate account to provide for payments off maturity dates.
You may not change this allocation. See "More information" later in this
Prospectus for an example of payments.
PAYMENTS
Whether you choose monthly, quarterly or annual payments, your payments
normally will start one payment period from the contract date unless you elect
otherwise as described under "Off maturity date payments" earlier in this
Prospectus. Your payments will always be made on the 15th day of the month.
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The period certain may also be referred to as the "liquidity period" because
you have access to your money through withdrawals or surrender of your
contract.
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WITHDRAWALS
After the first contract year you may take withdrawals from your account value.
You may take one withdrawal per contract year at any time during the contract
year. The minimum amount you may withdraw at any time is $2,000 or 25% of your
current cash value if it produces a larger amount. If you request to withdraw
more than 90% of your current cash value we will treat it as a request for
surrender of the contract for its cash value. See "Surrendering your contract
to receive its cash value" later in this Prospectus. Any amounts withdrawn from
a fixed maturity option, before its maturity date, will result in a market
value adjustment. See "Market value adjustment" earlier in this Prospectus.
Withdrawals made during the first seven contract
Contract features and benefits 15
years may be subject to a withdrawal charge. There is no free withdrawal amount
under the period certain contracts.
ALLOCATION OF WITHDRAWALS
We will subtract your withdrawals pro rata from all remaining fixed maturity
options to which your account value is allocated as well as from amounts held
in the separate account to provide for payments off maturity dates. As a
result, your payments will continue in reduced level amounts over the remaining
term of the period certain.
DEATH BENEFIT
When the annuitant dies before payments begin
Generally, when we receive satisfactory proof of the annuitant's death before
annuity payments begin we will pay the death benefit to the beneficiary named
in your contract. See "Your beneficiary" later in this Prospectus. If the joint
owner who is also the annuitant dies, we will consider the surviving owner to
be the beneficiary, taking the place of any other beneficiary designations.
We determine the amount of the death benefit payable to your beneficiary as of
the date we receive satisfactory proof of the annuitant's death and any
required instructions for the method of payment and any required forms
necessary to effect payment. The death benefit is the greater of:
(1) your account value; and
(2) the sum of the fixed maturity amounts in each fixed maturity option plus
any amounts held in the separate account to provide for payments off
maturity dates.
However, if you are the annuitant and your spouse is the joint owner or the
designated beneficiary under the contract, your spouse may elect to receive the
payments instead of taking the death benefit. The payments will then begin on
the scheduled date.
When the annuitant dies after the annuity payments begin
If the annuitant dies after the payments begin, payments will continue to be
made during the period certain to either the joint owner or the designated
beneficiary, whichever applies. The payments will be made on the same schedule
that was in effect before the annuitant's death.
At the beneficiary's option, payments may be discontinued and paid in a single
sum. If the single sum is elected within one year after the annuitant's death,
the single sum will be equal to the greater of:
(1) the account value; and
(2) the sum of the fixed maturity amounts in each fixed maturity option plus
any amounts held in the separate account to provide for payments off
maturity dates.
When the NQ contract owner who is not the annuitant dies after the annuity
payments begin
If your death occurs after annuity payments begin, payments will continue to be
made during the period certain to the designated beneficiary or in the case of
joint owners to the surviving owner. In either case, this person becomes the
new contract owner and receives the payments.
16 Contract features and benefits
2. Other benefits and features of the contracts
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HOW YOU CAN MAKE YOUR CONTRIBUTIONS
Except as noted below, contributions must be 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. For GMIB Income Manager(R) contracts, you can only
purchase a contract by exercising your GMIB benefit in accordance with your
Accumulator(R) series contract, even if the Accumulator(R) account value is
less than $10,000; no additional contributions are permitted.
For your convenience, we will accept initial and additional contributions, if
applicable, by wire transmittal from certain broker-dealers who have agreements
with us for this purpose. These methods of payment are discussed in detail
under "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 payments. 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, 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.
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Generally our "business day" 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 the
purposes of determining the date when contributions are applied and other
transaction requests are processed.
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SECTION 1035 EXCHANGES
You may apply the entire value of an existing nonqualified deferred annuity
contract (or life insurance or endowment contract) to purchase an Income
Manager(R) NQ contract in a tax-deferred exchange if you follow certain
procedures as shown in the form that we require you to use. Please note that
the IRS may not apply tax-free treatment to partial 1035 exchanges. Also 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.
In some states, this "free look" period may be longer.
Generally, your refund will equal your account value under the contract. Your
account value reflects any positive or negative market value adjustments in the
fixed maturity options through the date we receive your contract. Under the
life annuity with a period certain your refund will also include any amount
applied to the life contingent annuity. However, some states require that we
refund the full amount of your contribution (not including any investment gain
or loss). For IRA contracts returned to us within seven days after you receive
it, we are required to refund the full amount of your contribution.
If you cancel your GMIB Income Manager(R) contracts within the free look
period, we will reinstate your Accumulator(R) series contract as of the date
you exercised your GMIB. Upon reinstatement, the value applied to the GMIB
Income Manager(R) contract plus any charges that were deducted will be returned
to your Accumulator(R) series contract in accordance with the allocations that
were in effect on said date.
If you cancel your contract during the free look period, we may require that
you wait six months before you may apply for a contract with us again.
Please see "Tax information" later in this Prospectus for possible consequences
of cancelling your contract.
SURRENDERING YOUR CONTRACT TO RECEIVE ITS CASH VALUE
You may surrender your contract to receive its cash value at any time during
the period certain. Your cash value is equal to your account value minus any
withdrawal charge. There is no free withdrawal amount if you surrender your
contract. For GMIB Income Manager(R) contracts, there are no withdrawal
charges, and, therefore, no free withdrawal amount applies.
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 your contract will
terminate as of that date unless you have elected the life contingent annuity.
See "Surrendering your life annuity with a period certain contract" earlier in
this Prospectus.
WHEN TO EXPECT PAYMENTS
Generally, we will fulfill requests for payments within seven days of the
transaction to which the request relates. We can defer payment of any portion
of the account value (other than for death benefits) for up to six months while
you are living. We also may defer payments for any reasonable amount of time
(not to exceed 15 days) while we are waiting for a contribution check to clear.
Other benefits and features of the contracts 17
3. Charges
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WITHDRAWAL CHARGES
A withdrawal charge applies in two circumstances: (1) if you make a withdrawal
during a contract year and it exceeds any applicable free withdrawal amount,
described below, or (2) if you surrender your contract to receive its cash
value. For GMIB Income Manager(R) contracts, withdrawal charges do not apply.
The withdrawal charge equals a percentage of each contribution (or single
contribution) 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:
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Contract Year
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1 2 3 4 5 6 7 8+
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Percentage of
Contribution 7.0% 6.0% 5.0% 4.0% 3.0% 2.0% 1.0% 0.0%
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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 your contract as withdrawn first. See "Tax
information" later in this Prospectus.
We deduct the withdrawal charge from your account value in proportion to the
amount withdrawn from each fixed maturity option and any amounts held in the
separate account to provide for payments off maturity dates. 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 a withdrawal charge is also subject to a
withdrawal charge.
The withdrawal charge does not apply to the 10% free withdrawal amount
described below.
The 10% free withdrawal amount applies only to life annuity with a period
certain contracts (not including GMIB Income Manager(R) contracts since there
are no withdrawal charges). It does not apply to your period certain contract
or if you surrender your contract to receive its cash value.
Under life annuity with a period certain contracts, each contract year you can
withdraw up to 10% of your account value without paying a withdrawal charge.
This 10% free withdrawal amount is determined using your account value at the
beginning of each contract year.
AMOUNTS APPLIED FROM OTHER CONTRACTS ISSUED BY EQUITABLE LIFE
Life annuity with a period certain contract. If you own certain types of
contracts that we issue, you may apply the entire account value under those
contracts to purchase the life annuity with a period certain contract provided
the issue age and payment restrictions for the new contract are met. Depending
upon the provisions of your Accumulator(R) contract, the amount used to
purchase the GMIB Income Manager(R) may be reduced by the remaining withdrawal
charges and for any outstanding loans, plus accrued interest (Rollover TSA
only) on any Accumulator(R) series contract being surrendered. If you apply
your account value at a time when the dollar amount of the withdrawal charge
under such other contract is greater than 2% of remaining contributions (after
withdrawals), we reserve the right to waive the remaining withdrawal charge.
However, a new withdrawal charge schedule will apply under the new contract.
For purposes of the withdrawal charge schedule, the year in which your account
value is applied under the life annuity with a period certain contract will be
"contract year 1." If you apply your account value when the dollar amount of
the withdrawal charge is 2% or less, we reserve the right to waive the
withdrawal charges under the new contract. You should consider the timing of
your purchase as it relates to the potential for withdrawal charges under the
life annuity with a period certain contract.
Period certain contract. If you own certain types of contracts that we issue,
you may apply your entire account value to purchase the period certain contract
once any withdrawal charges are no longer in effect under the other contracts.
No withdrawal charges will apply under the period certain contract.
To purchase any Income Manager(R) contract we require that you return your
original contract to us. A new Income Manager(R) contract will be issued
putting this annuity into effect.
CHARGES FOR STATE PREMIUM AND OTHER APPLICABLE TAXES
We deduct a charge designed to approximate certain taxes that may be imposed
upon us, such as premium taxes in your state. We deduct the charge from your
contributions. The current tax charge that might be imposed varies by
jurisdiction and ranges from 0% to 3.5%. This deduction may not apply for
certain GMIB Income Manager(R) contracts.
GROUP OR SPONSORED ARRANGEMENTS
For certain group or sponsored arrangements, we may reduce the withdrawal
charge or change the minimum initial contribution requirements. We also may
increase the rates to maturity for the fixed maturity options and reduce
purchase rates for the life contingent annuity. 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. IRA contracts are not available for group
arrangements.
18 Charges
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 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 in the withdrawal charge 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 withdrawal charges when sales are made in a manner
that results in savings of sales and administrative expenses. This may include
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 the withdrawal charge where it will be unfairly discriminatory.
Charges 19
4. Payment of death benefit
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YOUR BENEFICIARY
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 change is signed.
YOUR ANNUITY PAYOUT OPTIONS (NOT INCLUDING GMIB INCOME MANAGER(R) CONTRACTS)
If the annuitant dies before annuity payments begin, your beneficiary may elect
to apply the death benefit to an annuity payout option. We offer several
annuity payout options to choose from. Restrictions apply, depending on the
type of contract you own. Please see "Contract features and benefits" under the
"Death benefit" sections earlier in this Prospectus for more information.
ANNUITY PAYOUT OPTIONS
Your beneficiary can choose from among the following death benefit annuity
payout options:
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 death benefit 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 -- period certain: An annuity that guarantees payments for the
rest of the annuitant's life, and, if the annuitant dies before the end of
a selected period of time ("period certain"), payments to the beneficiary
will continue for the balance of the period certain.
o Life annuity -- 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
continue to the beneficiary until that amount has been recovered.
o Period certain annuity: An annuity that guarantees payments for a specific
period of time, usually 5, 10, 15 or 20 years. 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.
The life annuity, life annuity -- period certain and the life annuity -- refund
certain are available on either 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, continuation of payments to
the survivor.
All of the above annuity payout options are available as fixed annuities. 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 the annuitant.
When the beneficiary selects a payout option, we will issue a separate written
agreement confirming the beneficiary's right to receive annuity payments. We
require the return of the contract before annuity payments begin.
The amount of the annuity payments will depend on the amount applied to
purchase the annuity, the type of annuity chosen and, in the case of a life
annuity, the annuitant's age (or the annuitant's and joint annuitant's ages)
and in certain instances, the sex of the annuitant(s). Once a payout option has
been chosen and payments begin, no change can be made.
At the time that the beneficiary elects a payout option if 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.
20 Payment of death benefit
5. 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 Income Manager(R) contracts owned by United States
individual taxpayers. We discuss the tax aspects of each type of contract
separately because the tax rules differ, depending on:
o the type of contract, whether NQ, traditional IRA, or Roth IRA,
o how you acquired your Income Manager(R) contract, whether by purchase or
exercising your GMIB benefit in accordance with your Accumulator(R) series
contract, and
o whether you have deferred your annuity payout start date.
The Income Manager(R) contract is intended to be a payout annuity. However,
except for GMIB Income Manager(R) contracts, you may be able to delay beginning
payments, and certain rules governing deferred annuity contracts indicated
below could apply.
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
without notice. 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 or values under the contract, or payments under the contract,
for example, amounts due to beneficiaries, may be subject to federal or state
gift, estate or inheritance 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 begin to be
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 adviser how EGTRRA affects your
personal financial situation.
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. Earnings in a deferred annuity contract are taxable even without a
distribution if you transfer a contract, for example, as a gift to someone
other than your spouse (or former spouse).
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 when figuring out the taxable amount of any
distribution from any of those contracts.
Corporations, partnerships, trusts and other non-natural persons generally
cannot defer the taxation of current income credited to the contract unless an
exception under the federal income tax rules apply. There is an exception for
immediate annuities.
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Immediate annuities are generally annuities in which payments begin within one
year from purchase and provide for a series of substantially equal payments
made at least annually.
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Please note that a payout contract purchased through a 1035 exchange may not be
treated as an immediate annuity.
ANNUITY PAYMENTS
Once annuity payments begin, a portion of each payment is taxable as ordinary
income. You get 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.
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.
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.
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The section below, "WITHDRAWALS MADE BEFORE ANNUITY PAYMENTS BEGIN," applies to
NQ contracts which are deferred and does not apply to GMIB Income Manager(R)
contracts.
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WITHDRAWALS 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 with-
Tax information 21
drawal, the balance of the distribution is treated as a return of your
investment in the contract and is not taxable.
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The section below, "CONTRACTS PURCHASED THROUGH EXCHANGES," applies to NQ
contracts which are deferred and does not apply to GMIB Income Manager(R)
contracts.
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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 which 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
Income Manager(R) 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 of the source contract carries over to the Income Manager(R) NQ
contract.
An owner may 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. You should also note that the Internal
Revenue Service has announced its intention to challenge transactions where
taxpayers enter into serial partial exchanges and annuitizations in order to
avoid income or penalties applicable to annuity contracts. Although the IRS has
not yet issued specific guidance on this point, you should discuss with your
tax adviser before you purchase an Income Manager(R) contract, intended to be a
payout annuity, with partial 1035 exchange proceeds.
SURRENDERS
If you surrender or cancel the NQ contract, the distribution is taxable as
ordinary income (not capital gain) to the extent it exceeds your investment in
the contract.
WITHDRAWALS MADE AFTER ANNUITY PAYMENTS BEGIN
If you make a withdrawal that terminates all periodic payments due, it will be
taxable as a complete surrender as discussed above. If you make a withdrawal
that does not terminate all periodic payments due, then the withdrawal will
generally be taxable. Also, a portion of the remaining reduced payments will be
eligible for tax-free recovery of investment.
DEATH BENEFIT PAYMENT 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. The
extra penalty tax does not apply to pre-age 59-1/2 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 expectancies) of
you and a beneficiary, in accordance with IRS formulas; or
o payments under an immediate annuity.
Periodic annuity payments we make to you from the life annuity with a period
certain while you are under age 59-1/2 should qualify for the "substantially
equal payments for life" exception noted above. However, this exception may not
apply if you take a withdrawal, surrender your contract or change the payment
pattern in any way.
Please note that a payout contract purchased through a 1035 exchange may not be
treated as an immediate annuity.
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
computation 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 trustee or custodian holds
the assets 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; and
22 Tax information
o Roth IRAs, funded on an after-tax basis.
We offer the Income Manager(R) contract for purchase only in traditional IRA
form. We offer the GMIB Income Manager(R) contract in traditional IRA form or
Roth IRA form, depending on the status of your Accumulator(R) series contract.
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 website (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.
We have not submitted to the IRS a request for an opinion letter to approve the
form of the Income Manager(R) traditional IRA contract for use as a traditional
IRA contract. 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.
CANCELLATION
You can cancel an Income Manager(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 an 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")
- --------------------------------------------------------------------------------
The sections, "Contributions to traditional IRAs," "Rollover and transfer
contributions to traditional IRAs," "Rollovers from eligible retirement plans
other than traditional IRAs," "Rollovers of after-tax contributions from
eligible retirement plans other than traditional IRAs," "Rollovers from
traditional IRAs to traditional IRAs," "Spousal rollovers and divorce-related
direct transfers," and "Excess contributions" do not apply to GMIB Income
Manager(R) contracts.
If you are acquiring your GMIB Income Manager(R) contract by exercising your
GMIB benefit in accordance with your Accumulator(R) series contract, go to
"Withdrawals, payments and transfers of funds out of traditional IRAs," below;
the sections pertaining to contributions to traditional IRAs in the prospectus
are generally intended for individuals who acquire the Income Manager(R)
traditional IRA contract by purchase.
- --------------------------------------------------------------------------------
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").
We require that your initial contribution to the Income Manager(R) traditional
IRA contract must be either a rollover or a direct custodian-to-custodian
transfer. See "Rollover and transfer contributions to traditional IRAs" below.
If you defer your annuity payout starting date you may be able to make
additional contributions. Any additional contributions you make may be any of
rollover, direct-transfer or regular contributions. Regular contributions to
IRAs are subject to a number of technical rules that differ depending on the
year, your age, whether you are an active participant in an employer-sponsored
plan, and your compensation. If you make subsequent regular contributions to
this contract, please consult your tax adviser or IRS Publication 590 for the
applicable rules.
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 employer 457(b) plans;
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
Your plan administrator will tell you whether or not your distribution is
eligible to be rolled over. Spousal beneficiaries and spousal alternate payees
under qualified domestic relations orders may roll over funds on the same basis
as the plan participant.
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 qualified plan or TSA 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 plan 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.
Tax information 23
All distributions from a TSA, qualified plan or governmental employer 457(b)
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 hardship withdrawals; or
o corrective distributions which fit specified technical tax rules; or
o loans that are treated as distributions; or
o death benefit payments to a beneficiary who is not your surviving spouse; or
o qualified domestic relations order distributions to a beneficiary who is not
your current spouse or former spouse.
You should discuss with your tax adviser 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 employer 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 different type of
eligible retirement plan such as a traditional IRA, and subsequently take a
premature distribution.
ROLLOVERS OF AFTER-TAX CONTRIBUTIONS FROM ELIGIBLE RETIREMENT PLANS OTHER THAN
TRADITIONAL IRAS
Any after-tax contributions you have made to a qualified plan or TSA (but not a
governmental employer 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."
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
employer 457(b) plan.
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.
SPOUSAL ROLLOVER AND DIVORCE-RELATED DIRECT TRANSFERS
The surviving spouse beneficiary of a deceased individual can roll over funds
from, or directly transfer funds from, 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 the maximum regular contribution amount
for the applicable taxable year;
o regular contributions to a traditional IRA made after you reach age 70-1/2;
and
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 under "Early distribution penalty tax" later in this Prospectus. 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;
(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.
Except as discussed below, the total amount of any distribution from a
traditional IRA must be included in your gross income as ordinary income. We
report all payments from traditional IRA contracts on IRS Form 1099R as fully
taxable.
If you have ever made nondeductible IRA contributions to any traditional IRA
(it does not have to be to this particular traditional IRA
24 Tax information
contract), those contributions are recovered tax free when you get
distributions from any traditional IRA. It is your responsibility to keep
permanent tax records of all your nondeductible contributions to traditional
IRAs so that you can correctly report the taxable amount of any distribution on
your own tax return. 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.
A distribution from a traditional IRA 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).
The following are eligible to receive rollovers of distributions from a
traditional IRA: a qualified plan, a TSA or a governmental employer 457(b)
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
employer 457(b) 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.
Since the Income Manager(R) annuity is intended to be a payout contract, it may
not be an appropriate contract if you intend to roll over funds later.
Allocation of funds to the life contingent annuity may make it difficult for
you to roll the contract over to another eligible retirement plan.
Distributions from a traditional IRA are not eligible for favorable ten-year
averaging and long-term capital gain treatment available to 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 adviser.
REQUIRED MINIMUM DISTRIBUTIONS
BACKGROUND ON REGULATIONS--REQUIRED MINIMUM DISTRIBUTIONS
Distributions must be made from traditional IRAs according to rules contained
in the Code and Treasury Regulations. Treasury Regulations on required minimum
distributions were proposed in 1987, revised in 2001 and finalized in 2002. The
2002 final Regulations generally apply beginning in January 2003. The 2002
final Regulations include Temporary Regulations applicable to annuity
contracts. Certain provisions of the Temporary Regulations concerning the
actuarial value of additional contract benefits which could have increased the
amount required to be distributed from contracts have currently been suspended.
However, these or similar provisions may apply in future years. Under
transitional rules, the 1987 and 2001 proposed regulations may continue to
apply to annuity payments. Please consult your tax adviser concerning
applicability of these complex rules to your situation.
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 LIFETIME 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."
If you are acquiring your GMIB Income Manager(R) contract by exercising your
GMIB benefit in accordance with your Accumulator(R) series contract, and
generally for Income Manager(R) contracts where the payout starting date is not
deferred, the annuity-based method applies.
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,
determined in accordance with IRS tables.
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, determined in
accordance with IRS tables.
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 for each of your traditional
IRAs and other retirement plans. For
Tax information 25
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, we do not automatically make distributions from your
contract before your annuity payments begin. We will calculate the amount of an
account-based required minimum distribution withdrawal for you, if you so
request in writing. However, in that case you will be responsible for asking us
to pay the required minimum distribution withdrawal to you. Also, 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 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.
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 you are within the age group which must
take lifetime required minimum distributions. 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 depending on whether you die before or after your Required Beginning Date
for lifetime required minimum distribution payments, and the status of your
beneficiary. The following assumes that you have not yet elected an
annuity-based payout at the time of your death. If you elect an annuity-based
payout, payments (if any) after your death must be made at least as rapidly as
when you were alive.
INDIVIDUAL BENEFICIARY. Regardless of whether your death occurs before or after
your Required Beginning Date, 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 IRS-provided 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 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 calendar year which contains the
fifth anniversary 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. Post-death distributions may 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 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 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 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.
IMPORTANT INFORMATION ABOUT MINIMUM DISTRIBUTIONS UNDER YOUR CONTRACT
Although the life contingent annuity portion of the life annuity with a period
certain does not have a cash value, it will be assigned a value for tax
purposes. This value will generally be changed each year. When you determine
the amount of account-based required minimum distributions from your IRA this
value must be included. This must be done before annuity payments begin even
though the life contingent annuity may not be providing a source of funds to
satisfy the required minimum distributions.
If you surrender your contract, or withdraw any remaining account value before
your annuity payments begin, it may be necessary for you to satisfy your
required minimum distribution by moving forward the start date of payments
under your life contingent annuity. Or to the extent available, you have to
take distributions from other IRA funds you may have. Or, you may convert your
IRA life contingent annuity under the IRA contract to a nonqualified life
contingent annuity. This would be viewed as a distribution of the value of the
life contingent
26 Tax information
annuity from your IRA, and therefore, would be a taxable event. However, since
the life contingent annuity would no longer be part of the IRA, you would not
have to include its value when determining future required minimum
distributions.
If you have elected a joint and survivor form of the life contingent annuity,
the joint annuitant must be your spouse. In the event of your death or the
death of your spouse the value of such annuity will change. For this reason, it
is important that someone tell us if you or your spouse dies before the life
contingent annuity has started payments so that a lower valuation can be made.
Otherwise, a higher tax value may result in an overstatement of the amount that
would be necessary to satisfy your required minimum distribution amount.
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 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;
o because you are disabled (special federal income tax definition);
o used to pay certain extraordinary medical expenses (special federal income
tax definition);
o used to pay medical insurance premiums for unemployed individuals (special
federal income tax definition);
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);
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.
WILL PAYMENTS WE MAKE TO YOU FROM THE LIFE ANNUITY WITH A PERIOD CERTAIN WHILE
YOU ARE UNDER AGE 59-1/2 QUALIFY AS SUBSTANTIALLY EQUAL PAYMENTS FOR LIFE?
Same as nonqualified annuities under "Early distribution penalty tax."
ROTH IRA GMIB INCOME MANAGER(R) CONTRACTS
Before you exercise your GMIB benefit in accordance with your Accumulator(R)
series Roth IRA contract, you should discuss with your tax adviser the tax
consequences of distributions from a Roth IRA which may apply to your personal
situation.
Payments from traditional IRAs and Roth IRAs are taxed differently. Payments
from traditional IRAs are generally fully taxable, as discussed earlier in this
prospectus. In any event, the issuer of the traditional IRA is entitled to
report distributions from traditional IRAs as fully taxable and it is the IRA
owner's responsibility to calculate the taxable and tax-free portions of any
traditional IRA payments on the owner's tax return.
Distributions from Roth IRAs generally receive return of contribution treatment
first under federal income tax calculation rules before any income is taxable.
Certain distributions from Roth IRAs may qualify for fully tax-free treatment.
These are distributions after you reach age 59-1/2, die, become disabled or meet
a qualified first-time homebuyer tax rule. You also have to meet a five-year
aging period, which begins when you first contribute funds to any Roth IRA.
For example, if you purchased an Accumulator(R) series traditional IRA contract
in 1997 and did not convert it into a Roth IRA until 2002, and if your
Accumulator(R) series contract is your sole Roth IRA, you have not yet met the
five-year aging period if you exercise your GMIB benefit in 2004. In that case,
payments received before the five-year aging period is met, are treated first
as a recovery of contributions to the Roth IRA, and next as ordinary income,
after all contributions are recovered.
Taxable withdrawals or distributions from Roth IRAs may be subject to an
additional 10% penalty tax if you are under age 59-1/2, unless an exception
applies.
Since federal income rules require Roth IRA owners to aggregate all of their
Roth IRAs together to determine the tax treatment and taxable amount, if any,
of distributions and payments from Roth IRAs, the issuer of any Roth IRA
contract reports on IRS Form 1099-R only the amount of distributions and
payments it makes for the year as "taxable amount not determined." It is your
responsibility to calculate on your tax return the tax-free, contribution
recovery, or taxable income amounts as applicable.
As discussed earlier in this prospectus, traditional IRAs are subject to
required minimum distribution rules which require that amounts begin to be
distributed in a prescribed manner from the IRA after the owner reaches age
70-1/2. These rules also require distributions after the owner's death. No
distributions are required to be made from Roth IRAs until after the Roth IRA
owner's death, but then the required minimum distribution rules apply.
As in the case of a traditional IRA, borrowing and loans are prohibited
transactions for a Roth IRA.
Tax information 27
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.
Note that 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
may elect out of withholding as described below.
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. We might have to withhold and/or report on amounts we pay under
a free look or cancellation.
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 their toll-free number.
If you are receiving periodic and/or non-periodic payments, you will be
notified of the withholding requirements and of your right to make withholding
elections.
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 $17,280 in periodic annuity payments in
2004 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
For a non-periodic distribution (total surrender 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
IRAs.
28 Tax information
6. More information
- --------------------------------------------------------------------------------
ABOUT OUR FIXED MATURITY OPTIONS
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.
- --------------------------------------------------------------------------------
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) 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 0.25% to the current rate in (1)(c) above for purposes of
calculating the market value adjustment only.
ABOUT THE SEPARATE ACCOUNT FOR THE FIXED MATURITY OPTIONS
Investments. Under New York Insurance law, the portion of the separate account
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 which applies, transfer all assets allocated to the separate account
to our general account. We guarantee all benefits relating to your account
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, 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 OUR 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. Amounts applied under the life contingent annuity become
part of our general account.
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 made a review of the
disclosure that is included in the prospectus for your information that relates
to the general account (other than market value adjustment interests) and the
life contingent annuity. The disclosure, however, may be subject to certain
generally applicable provisions of the federal securities laws relating to the
accuracy and completeness of statements made in prospectuses.
OTHER METHODS OF PAYMENT
WIRE TRANSMITTALS
We accept initial contributions sent by wire to our Processing Office by
agreement with certain broker-dealers. The transmittals must be
More information 29
accompanied by information we require to allocate your contribution. Wire
orders not accompanied by complete information may be retained as described
under "How you can make your contributions" in "Other benefits and features of
the contracts" earlier in this prospectus.
Even if we accept the wire order and essential information, a contract
generally will not be issued until we receive and accept a properly completed
application. In certain cases we may issue a contract based on information
forwarded electronically. Where we require a signed application, no financial
transactions will be permitted until we receive the signed application and have
issued the contract.
After your contract has been issued, additional contributions under the life
annuity with a period certain contract may be transmitted by wire.
ABOUT PAYMENTS UNDER PERIOD CERTAIN CONTRACTS
The following example illustrates a ten-year level stream of annual payments,
each in the amount of $10,000, purchased on February 13, 2004 with the first
payment on February 15, 2005. To achieve this result, a single contribution of
$83,820.38 is required, and is allocated among the fixed maturity options as
indicated below.
- --------------------------------------------------------------------------
Price per $100
February 15th of of maturity Allocation of
calendar year Payment value contribution
- --------------------------------------------------------------------------
2005 $10,000 $ 97.06 $ 9,706.38
- --------------------------------------------------------------------------
2006 $10,000 $ 94.24 $ 9,423.67
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2007 $10,000 $ 91.49 $ 9,149.19
- --------------------------------------------------------------------------
2008 $10,000 $ 88.83 $ 8,882.71
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2009 $10,000 $ 86.23 $ 8,623.29
- --------------------------------------------------------------------------
2010 $10,000 $ 83.72 $ 8,372.13
- --------------------------------------------------------------------------
2011 $10,000 $ 80.29 $ 8,029.39
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2012 $10,000 $ 76.09 $ 7,608.90
- --------------------------------------------------------------------------
2013 $10,000 $ 72.07 $ 7,207.34
- --------------------------------------------------------------------------
2014 $10,000 $ 68.17 $ 6,817.37
- --------------------------------------------------------------------------
Total $ 83,820.38
- --------------------------------------------------------------------------
DATES AND PRICES AT WHICH CONTRACT EVENTS OCCUR
BUSINESS DAY
Our "business day" is generally any day 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; however, we may close or close early due to emergency
conditions. 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.
If your contribution or any other transaction request containing all the
required information, reaches us on a non-business day or after 4:00 p.m. on a
business day, we will use the next business day.
CONTRIBUTIONS
o Contributions allocated to the fixed maturity options will receive the rate
to maturity in effect for that fixed maturity option on that business day.
o Contributions allocated to the separate account to provide for payments off
maturity dates will receive the interest rate in effect on that business
day or the same rate as the rate to maturity that applied to the expired
fixed maturity option.
o Contributions allocated to the life contingent annuity will be invested at
the purchase rates in effect on that business day. If you are purchasing
the Income Manager(R) (life with a period certain) option in connection
with your guaranteed minimum income benefit under certain contracts, you
should note that the purchase rates used are more conservative (and
therefore your payments may be smaller) than those we use for other Income
Manager(R) contracts.
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 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, 2003
and 2002, and for the three years ended December 31, 2003, in this prospectus
by reference to the 2003 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.
TRANSFERS OF OWNERSHIP, COLLATERAL ASSIGNMENTS, LOANS, AND BORROWING
The contracts may not be assigned except through surrender to us. They may not
be borrowed against or used as collateral for a loan or other obligation.
DISTRIBUTION OF CONTRACTS
The contracts are distributed by both AXA Advisors, LLC ("AXA Advisors") and
AXA Distributors, LLC ("AXA Distributors"). AXA Advisors (the successor to EQ
Financial Consultants, Inc.) an affiliate of Equitable Life and AXA
Distributors, an indirect wholly owned subsidiary of Equitable Life, are
registered with the SEC as broker dealers and are members of the National
Association of Securities Dealers, Inc. Their principal business address is
1290 Avenue of the Americas, New York, NY 10104. Both broker dealers also act
as distributors for other Equitable Life annuity products.
AXA Distributors is a successor by merger to all of the functions, rights and
obligations of Equitable Distributors, Inc. ("EDI"). Like AXA Distributors, EDI
was owned by Equitable Holdings, LLC.
Under a distribution agreement between AXA Distributors, Equitable Life, and
certain of Equitable Life's separate accounts, including the separate account
that contains the fixed maturity options, Equitable Life paid AXA Distributors
distribution fees of $429,871,011 for 2003, $228,077,343 for 2002 and
$219,355,297 for 2001, as the distributor of certain contracts, including these
contracts, and as the principal underwriter of several Equitable Life separate
accounts, including the separate account that contains the fixed maturity
options. Of these
30 More information
amounts for each of these three years, AXA Distributors retained $84,547,116,
$59,543,803 and $91,443,554, respectively.
Under a distribution and services agreement between AXA Advisors, Equitable
Life and certain of Equitable Life's separate accounts, including the separate
account that contains the fixed maturity options, Equitable Life paid AXA
Advisors a fee of $325,380 for each of the years 2003, 2002 and 2001. Equitable
Life paid AXA Advisors as the distributor for certain contracts, including
these contracts $562,696,578 in 2003, $536,113,253 in 2002 and $543,488,990 in
2001. Of these amounts, AXA Advisors retained $287,344,634, $283,213,274 and
$277,057,837, respectively.
The contracts will be sold by registered representatives of AXA Distributors
and AXA Advisors as well as by affiliated and unaffiliated broker-dealers with
which AXA Distributors and/or AXA Advisors has entered into selling agreements.
We pay broker-dealer sales compensation that will generally not exceed 5.0% of
the total contributions made under the contracts. Broker-dealers receiving
sales compensation will generally pay a portion of it to their financial
representatives as commissions related to the sales of the contracts. AXA
Distributors may also receive compensation and reimbursement for its marketing
services under the terms of its distribution agreement with Equitable Life, as
well as payments from portfolio advisers for sales meetings and/or seminar
sponsorships.
Equitable and/or AXA Distributors and/or AXA Advisors may use their respective
past profits or other resources to pay brokers and other financial
intermediaries for certain expenses they incur in providing services intended
to promote the sales of our products and/or shares in the underlying Trusts.
These services may include sales personnel training, prospectus review,
marketing and related services as well as support services that benefit
contract owners.
Similarly, in an effort to promote the sale of our products, AXA Advisors may
provide its financial professionals and managerial personnel with a higher
percentage of sales commissions and/or more compensation for the sale of an
Equitable variable product than it would for the sale of another product. Such
practice is known as providing differential compensation. Other forms of
compensation financial professionals may receive include health and retirement
benefits, credits towards stock options awards and rewards for sales incentive
campaigns. In addition, managerial personnel may receive expense
reimbursements, marketing allowances and so called "overrides." In part for tax
reasons, AXA Advisors financial professionals and managerial personnel qualify
for health and retirement benefits based on their sales of our variable
products.
These payments and differential compensation (together,"payments") can vary in
amount based on the applicable product and/or entity or individual involved. As
with any incentive, such payments may cause the recipient to show preference in
recommending the purchase or sale of our products. However, under applicable
rules of the National Association of Securities Dealers, Inc., AXA Advisors
financial professionals may only recommend to you products that they reasonably
believe are suitable for you based on facts that you have disclosed as to your
other security holdings, financial situation and needs. In making any
recommendation, financial professionals may nonetheless face conflicts of
interest because of the differences in compensation from one product category
to another, and because of differences in compensation between products in the
same category. Although Equitable takes all of its costs into account in
establishing the level of fees and expenses in our products, payments made will
not result in any separate charge to you under your contract.
More information 31
7. Incorporation of certain documents by reference
- --------------------------------------------------------------------------------
Equitable Life's annual report on Form 10-K for the year ended December 31,
2003 is considered to be part of this prospectus because it is incorporated by
reference.
After the date of the 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 as amended, ("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 and
quarterly reports on Form 10-K and Form 10-Q, electronically according to EDGAR
under CIK No. 0000727920. The SEC maintains a website 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).
32 Incorporation of certain documents by reference
Appendix: Market value adjustment example
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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 was allocated
on February 13, 2004 to a fixed maturity option with a maturity date of
February 15, 2013 at a rate to maturity of 7.00% resulting in a maturity value
at the maturity date of $183,846, and further assuming that a withdrawal of
$50,000 was made on February 15, 2009.
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Hypothetical assumed
rate to maturity on
February 15, 2009
- -----------------------------------------------------------------------------------
5.00% 9.00%
- -----------------------------------------------------------------------------------
As of February 15, 2009 (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 February 15, 2009 (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 if a withdrawal is made when rates have increased from
7.00% to 9.00% (right column), a portion of 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 portion of a positive market
value adjustment is realized.
Appendix: Market value adjustment example A-1
PART II
INFORMATION NOT REQUIRED IN PROSPECTUS
ITEM 15. INDEMNIFICATION OF DIRECTORS AND OFFICERS
The by-laws of The Equitable Life Assurance Society of the
United States ("Equitable Life") 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.
II-1
ITEM 16. EXHIBITS
Exhibits No.
(1) (a) Form of Distribution Agreement by and among
Equitable Distributors, Inc., Separate
Account Nos. 45 and 49 of Equitable Life and
Equitable Life Assurance Society of the
United States, incorporated by reference to
Exhibit 1(a) to the Registration Statement
on Form S-3 (File No. 33-88456), filed June
7, 1996.
(b) Form of Distribution Agreement dated as of
January 1, 1998 among The Equitable Life
Assurance Society of the United States for
itself and as depositor on behalf of certain
separate accounts and Equitable
Distributors, Inc., incorporated herein by
reference to Exhibit 3(b) to the
Registration Statement on Form N-4 (File No.
333-05593) on May 1, 1998.
(c) Distribution and Servicing Agreement among
Equico Securities (now AXA Advisors, LLC),
The Equitable Life Assurance Society of the
United States, and Equitable Variable Life
Insurance Company, dated as of May 1, 1994,
incorporated herein by reference to Exhibit
3(c) to the Registration Statement on
Form N-4 File No. 2-30070, refiled
electronically July 10, 1998.
(d) Letter of Agreement for Distribution
Agreement among The Equitable Life Assurance
Society of the United States and EQ
Financial Consultants, Inc. (now AXA
Advisors, LLC), dated April 20, 1998,
incorporated herein by reference to
Exhibit No. 3(c) to Registration Statement
(File No. 33-83750), filed on May 1, 1998.
(e) 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, August
28, 1997.
(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. 333-81501
on December 5, 2001.
(g) Form of Participation Agreement among The
Equitable Life Assurance Society of the
United States, The Universal Institutional
Funds, Inc. and Morgan Stanley Investment
Management Inc., incorporated herein by
reference to Exhibit No. 1-A(9)(d) to
Registration Statement on Form S-6, File
No. 333-17641, filed on October 8, 2002.
(h) Form of Particiption Agreement among BARR
Rosenberg Variable Insurance Trust, BARR
ROSENBERG FUNDS DISTRIBUTOR, INC., AXA
ROSENBERG INVESTMENT MANAGEMENT LLC, and the
Equitable Life Assurance Company of the
United States, previously filed with this
Registration Statement, File No. 333-81501
on Form N-4, on August 5, 2003.
(i) 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
incorporated herein by reference to Exhibit
3(d) to Registration Statement File No.
33-83750 filed April 25, 2001.
(j) Distribution Agreement for services by AXA
Network, LLC and its subsidiaries to The
Equitable Life Assurance Society of the
United States dated January 1, 2000
incorporated herein by reference to Exhibit
3(e) to Registration Statement File No.
33-83750 filed April 25, 2001.
(k) General Agent Sales Agreement dated
January 1, 2000 between The Equitable Life
Assurance Society of the United States and
AXA Network, LLC and its subsidiaries,
incorporated herein by reference to
Exhibit 3(h) to the Registration Statement
on Form N-4, File No. 2-30070, filed
April 19, 2004.
(l) First Amendment to General Agent Sales
Agreement dated January 1, 2000 between
The Equitable Life Assurance Society of the
United States and AXA Network, LLC and its
subsidiaries, incorporated herein by
reference to Exhibit 3(i) to the
Registration Statement on Form N-4, File
No. 2-30070, filed April 19, 2004.
(m) Second Amendment to General Agent Sales
Agreement dated January 1, 2000 between
The Equitable Life Assurance Society of
the United States and AXA Network, LLC
and its subsidiaries, incorporated herein
by reference to Exhibit 3(j) to the
Registration Statement on Form N-4, File
No. 2-30070, filed April 19, 2004.
(4) (a) Form of group annuity contract no.
1050-94IC, incorporated herein by reference
to Exhibit No. 4(a) to the Registration
Statement on Form S-3 (File No. 333-24009)
filed on March 6, 1998.
(b) Form of group annuity certificate nos. 94ICA
and 94ICB, incorporated herein by reference
to Exhibit No. 4(b) to the Registration
Statement on Form S-3 (File No. 333-24009)
filed on March 6, 1998.
(b)(i) Form of Data pages for Equitable Accumulator
TSA, incorporated by reference to Exhibit
No. 4(s) to the Registration Statement on
Form N-4 (File No. 33-05593) filed on May
22, 1998.
(c) Forms of Endorsement Nos. 94ENIRAI, 94ENNQI
and 94ENMVAI to contract no. 1050-94IC and
data pages no. 94ICA/BIM(IRA), (NQ), (NQ
Plan A) and (NQ Plan B), incorporated herein
by reference to Exhibit No. 4(c) to the
Registration Statement on Form S-3
(File No. 333-24009) filed on March 6, 1998.
(c)(i) Form of Data Pages for Equitable Accumulator
Select TSA, incorporated by reference to
Exhibit 4(k) to the Registration Statement
on Form N-4 (File No. 333-31131) filed on
May 22, 1998.
(d) Forms of Application used with the IRA, NQ
and Fixed Annuity Markets, incorporated
herein by reference to Exhibit No. 4(d) to
the Statement on Form S-3 (File No.
333-24009) filed on March 6, 1998.
(d)(i) Form of Data Pages for Equitable Accumulator
TSA, incorporated by reference to Exhibit
No. 4(v) to the Registration Statement on
Form N-4 (File No. 33-83750) filed on May
22, 1998.
(e) Form of Endorsement no. 95ENLCAI to contract
no. 1050-94IC and data pages no. 94ICA/BLCA,
incorporated herein by reference to Exhibit
No. 4(e) to the Registration Statement on
Form S-3 (File No. 333-24009) filed on
March 6, 1998.
(e)(i) Form of Endorsement Applicable to TSA
Certificates, incorporated by reference to
Exhibit 4(t) to the Registration Statement
on Form N-4 (File No. 333-05593) filed on
May 22, 1998.
(f) Forms of Data Pages for Rollover IRA, IRA
Assured Payment Option, IRA Assured Payment
Option Plus, Accumulator, Assured Growth
Plan, Assured Growth Plan (Flexible Income
Program), Assured Payment Plan (Period
Certain) and Assured Payment Plan (Life with
a Period Certain), incorporated by reference
to Exhibit 4(f) to the Registration
Statement on Form S-3 (File No. 33-88456)
filed August 31, 1995.
(f)(i) Form of Enrollment Form/Application for
Equitable Accumulator (IRA, NQ, QF and TSA),
incorporated by reference to Exhibit No.
5(f) to the Registration Statement on Form
N-4 (File No. 333-05593) filed on May 22,
1998.
II-2
Exhibits No.
(g) Forms of Data Pages for Rollover IRA, IRA
Assured Payment Option, IRA Assured Payment
Option Plus, Accumulator, Assured Growth
Plan and Assured Payment Plan (Life Annuity
with a Period Certain), incorporated by
reference to Exhibit 4(g) to the
Registration Statement on Form S-3 (File No.
33-88456), filed on April 23, 1996.
(h) Form of Separate Account Insulation
Endorsement for the Endorsement Applicable
to Market Value Adjustment Terms,
incorporated by reference to Exhibit 4(h) to
the Registration Statement on Form S-3 (File
No. 33-88456), filed on April 23, 1996.
(i) Forms of Guaranteed Minimum Income Benefit
Endorsements (and applicable data page for
Rollover IRA) for Endorsement Applicable to
Market Value Adjustment Terms and for the
Life Contingent Annuity Endorsement,
incorporated by reference to Exhibit 4(i) to
the Registration Statement on Form S-3 (File
No. 33-88456), filed on April 23, 1996.
(j) Forms of Enrollment Form/Application for
Rollover IRA, Choice Income Plan, Assured
Growth Plan, Accumulator and Assured Payment
Plan, incorporated by reference to Exhibit
4(j) to the Registration Statement on Form
S-3 (File No. 33-88456), filed on April 23,
1996.
(k) Forms of Data Pages for the Accumulator,
incorporated by reference to Exhibit 4(k) to
the Registration Statement on Form S-3 (File
No. 33-88456), filed June 7, 1996.
(l) Forms of Data Pages for the Rollover IRA,
incorporated by reference to Exhibit 4(l) to
the Registration Statement on Form S-3 (File
No. 33-88456), filed June 7, 1996.
(m) Forms of Data Pages for the Accumulator and
Rollover IRA, incorporated by reference to
Exhibit 4(m) to the Registration Statement
on Form S-3 (File No. 33-88456), filed
October 9, 1996.
(n) Forms of Data Pages for Accumulator and
Rollover IRA, incorporated by reference to
Exhibit 4(n) to the Registration Statement
on Form S-3 (File No. 33-88456), filed
October 16, 1996.
(o) Forms of Data Pages for the Accumulator,
Rollover IRA, Income Manager Accumulator,
Income Manager Rollover IRA, Equitable
Accumulator, Income Manager (IRA and NQ) and
MVA Annuity (IRA and NQ), incorporated
herein by reference to Exhibit No. 4(o) to
the Registration Statement on Form S-3
(File No. 333-24009) filed on April 30,
1997.
(p) Forms of Enrollment Form/Application for
Income Manager Accumulator, Income Manager
Rollover IRA, Equitable Accumulator, Income
Manager (IRA and NQ) and MVA Annuity (IRA
and NQ), incorporated herein by reference to
Exhibit No. 4(p) to the Registration
Statement on Form S-3 (File No. 333-24009)
filed on April 30, 1997.
(q) Forms of Data Pages for Equitable
Accumulator Select (IRA) and Equitable
Accumulator Select (NQ), incorporated herein
by reference to Exhibit No. 4(q) to the
Registration Statement on Form S-3 (File
No. 333-24009) filed on September 18, 1997.
(r) Forms of Enrollment Form/Application for
Equitable Accumulator Select (IRA and NQ),
incorporated herein by reference to Exhibit
No. 4(r) to the Registration Statement on
Form S-3 (File No. 333-24009) filed on
September 18, 1997.
(s) Form of Data Pages No. 94ICB and 94ICBMVA
for Equitable Accumulator (IRA)
Certificates, incorporated by reference to
Exhibit 4(m) to the Registration Statement
on Form N-4 (File No. 33-83750) on
February 27, 1998.
(t) Form of Data Pages No. 94ICB and 94ICBMVA
for Equitable Accumulator (NQ) Certificates,
incorporated by reference to Exhibit 4(n) to
the Registration Statement on Form N-4 (File
No. 33-83750) on February 27, 1998.
(u) Form of Data Pages No. 94ICB and 94ICBMVA
for Equitable Accumulator (QP) Certificates,
incorporated by reference to Exhibit 4(o) to
the Registration Statement on Form N-4 (File
No. 33-83750) on February 27, 1998.
(v) Form of Data Pages No. 94ICB, 94ICBMVA and
94ICBLCA for Assured Payment Option
Certificates, incorporated by reference to
Exhibit 4(p) to the Registration Statement
on Form N-4 (File No. 33-83750) on
February 27, 1998.
(w) Form of Data Pages No. 94ICB, 94ICBMVA and
94ICBLCA for APO Plus Certificates,
incorporated by reference to Exhibit 4(q) to
the Registration Statement on Form N-4 (File
No. 33-83750) on February 27, 1998.
(x) Form of Endorsement applicable to Defined
Benefit Qualified Plan Certificates No.
98ENDQPI incorporated by reference to
Exhibit 4(r) to the Registration Statement
on Form N-4 (File No. 33-83750) on
February 27, 1998.
(y) Form of Endorsement applicable to
Non-Qualified Certificates No. 98ENJONQI,
incorporated by reference to Exhibit 4(s) to
the Registration Statement on Form N-4 (File
No. 33-83750) on February 27, 1998.
(z) Form of Endorsement applicable to Charitable
Remainder Trusts No. 97ENCRTI, incorporated
by reference to Exhibit 4(t) to the
Registration Statement on Form N-4 (File No.
33-83750) on February 27, 1998.
(a)(a) Form of Enrollment Form/Application No.
126737 (5/98) for Equitable Accumulator
(IRA, NQ and QP), incorporated by reference
to Exhibit 5(e) to the Registration
Statement on Form N-4 (File No. 33-83750)
on February 27, 1998.
(b)(b) Form of Endorsement for Extra Credit Annuity
Form No. 98ECENDI and Data Pages 94ICA/B,
incorporated herein by reference to Exhibit
No. 4(j) to the Registration Statement
File No. 333-64749 on Form N-4, filed
September 30, 1998.
(c)(c) Form of Endorsement for Extra Credit Annuity
Form No. 98ECENDI and Data Pages 94ICA/B,
incorporated herein by reference to Exhibit
No. 4(k) to the Registration Statement
File No. 333-64751 on Form N-4, filed
September 30, 1998.
(d)(d) Form of Endorsement applicable to Defined
Contribution Qualified Plan Certificates No.
97ENQPI and Data Pages 94ICA/B, incorporated
herein by reference to Exhibit No. 4 (k) to
the Registration Statement File No.
333-64749 on Form N-4, filed September 30,
1998.
(e)(e) Form of Endorsement applicable to Defined
Contribution Qualified Plan Certificates No.
97ENQPI and Data Pages 94ICA/B, incorporated
herein by reference to Exhibit No. 4(l) to
the Registration Statement File No.
333-64751 on Form N-4, filed September 30,
1998.
(f)(f) Form of Data Pages for Equitable Accumulator
Express, incorporated herein by reference to
Exhibit No. 4(h) to Registration Statement
File No. 333-79379 on Form N-4, filed on May
26, 1999.
(g)(g) Form of Enrollment Form/Application for
Equitable Accumulator Express, incorporated
herein by reference to Exhibit No. 5 to
Registration Statement File No. 333-79379 on
Form N-4, filed on May 26, 1999.
(h)(h) Form of Data Pages for new version of
Equitable Accumulator, incorporated herein
by reference to Exhibit 4(z) to Registration
Statement File No. 333-05593 on Form N-4,
filed on November 23, 1999.
(i)(i) Form of Data Pages for new version of
Equitable Accumulator, incorporated herein
by reference to Exhibit 4(c)(c) to
Registration Statement File No. 33-83750 on
Form N-4, filed on December 3, 1999.
(j)(j) Form of Endorsement (Form No. 2000
ENRAI-IM) -- Beneficiary Continuation Option
for use with IRA contracts incorporated
herein by reference to Exhibit No. 4(j)(j)
to the Registration Statement on Form S-3
File No. 333-24009 filed on April 26, 2000.
(k)(k) Form of data pages for Equitable Accumulator
Select baseBUILDER incorporated herein by
reference to Registration Statement File No.
333-73121, filed on April 25, 2000.
(l)(l) Form of Endorsement applicable to Roth IRA
Contracts, Form No. 1M-ROTHBCO-1
incorporated herein by reference to
Registration Statement File No. 33-83750 on
Form N-4, filed April 25, 2001.
(m)(m) Revised Form of Endorsement applicable to
IRA Certificates, Form 2000EN/RAI-IM
incorporated herein by reference to
Registration Statement File No. 33-83750 on
Form N-4, filed April 25, 2001.
(n)(n) Form of Endorsement applicable to
Non-Qualified Certificates Form No. 99ENNQ-G
incorporated herein by reference to
Registration Statement File No. 33-83750 on
Form N-4, filed April 25, 2001.
(o)(o) Form of Optional Death Benefit Rider, Form
No. 2000PPDB incorporated herein by
reference to Registration Statement File No.
33-83750 on Form N-4, filed April 25, 2001.
(p)(p) Form of Data Pages for Equitable Accumulator
incorporated herein by reference to Exhibit
4(i)(i) to Registration Statement File No.
33-83750 on Form N-4, filed April 25, 2001.
(r)(r) Form of Data Pages for Equitable Accumulator
Select incorporated herein by reference to
Exhibit 4(v) to Registration Statement File
No. 333-73121 on Form N-4, filed April 25,
2001.
(s)(s) Form of Data Pages for Equitable Accumulator
Advisor incorporated herein by reference to
Exhibit 4(l) to Registration Statement File
No. 333-44996 on Form N-4, filed
April 25, 2001.
(t)(t) Form of Data Pages for Equitable Accumulator
incorporated herein by reference to Exhibit
4(f)(f) to Registration Statement File No.
333-05593 on Form N-4, filed April 25, 2001.
(u)(u) Form of Data Pages for Equitable Accumulator
Select incorporated herein by reference to
Exhibit 4(w) to Registration Statement File
No. 333-31131 on Form N-4, filed
April 25, 2001.
(w)(w) Form of Data Pages for Equitable Accumulator
Advisor incorporated herein by reference to
Exhibit 4(m) to Registration Statement File
No. 333-96177 on Form N-4, filed
April 25, 2001.
(x)(x) Form of Amendment to Certificate Form No.
941CB, Form No. 2000 BENE-G incorporated
herein by reference to Exhibit 4(j)(j) to
Registration Statement File No. 33-83750 on
Form N-4, filed April 25, 2001.
(y)(y) Form of Endorsement applicable to
Non-Qualified Certificates incorporated
herein by reference to Exhibit 4(k)(k) to
Registration Statement File No. 33-83750 on
Form N-4, filed April 25, 2001.
(z)(z) Form of Enrollment Form/Application for
Equitable Accumulator Select II incorporated
herein by reference to Exhibit 5(a) to
Registration Statement File No. 811-07659
(amendment No. 50) on Form N-4 filed on
May 11, 2001.
(a)(b) Form of Data Pages for Equitable Accumulator
Select II (NQ) incorporated
herein by reference to Exhibit 4(e) to
Registration Statement File No. 811-07659
(amendment No. 50) on Form N-4 filed on
May 11, 2001.
(a)(c) Form of Data Pages for Equitable Accumulator
Select II (NQ) Certificates incorporated
herein by reference to Exhibit 4(k) to
Registration Statement File No. 811-08754
(amendment No. 41) on Form N-4 filed on May
22, 2001.
(a)(d) Form of Enrollment Form/Application for
Equitable Accumulator Select II incorporated
herein by reference to Exhibit 5(a) to
Registration Statement File No. 811-08754
(amendment No. 41) on Form N-4 filed on May
22, 2001.
(a)(e) Form of Endorsement (No. 2002 NQBCO)
applicable to non-qualified
contract/certificates with beneficiary
continuation option, incorporated herein by
reference to Registration Statement File No.
333-05593, filed on April 24, 2003.
(a)(f) Form of Guaranteed Minimum Death Benefit
Rider (No. 2002 GMDB-6% Rollup), annual
ratchet to age 85, incorporated herein by
reference to Registration Statement File No.
333-05593, filed on April 24, 2003.
(a)(g) Form of Guaranteed Minimum Death Benefit
Rider (No. 2002 GMDB-6% Rollup), [6%] Rollup
to age 85,incorporated herein by reference
to Registration Statement File No.
333-05593, filed on April 24, 2003.
(a)(h) Form of Guaranteed Minimum Death Benefit
Rider (No. 2002 GMDB-6% or AR) greater of
[6%] Rollup to Age [85] GMDB or Annual
Ratchet to age [85] GMDB, incorporated
herein by reference to Registration
Statement File No. 333-05593, filed on April
24, 2003.
(a)(i) Form of Guaranteed Minimum Income Benefit
Rider (also known as the Living Benefit)
(No. 2002 GMIB), incorporated herein by
reference to Registration Statement File No.
333-05593, filed on April 24, 2003.
(a)(j) Form of Protection Plus Optional Death
Benefit Rider (No. 2002 PPDB), incorporated
herein by reference to Registration
Statement File No. 333-05593, filed on April
24, 2003.
(a)(k) Form of Endorsement, Form No. 2002 DP
(GIA/SEL), incorporated herein by reference
to Registration Statement File No. 333-31131
filed on April 24, 2003.
(a)(l) Form of Data Pages for (No. 2003 DPSelect),
incorporated by reference to Exhibit No.
4(i)(i)(i) to Registration Statement File
No. 333-31131, filed on May 8, 2003.
(a)(m) Form of Data Pages (Inherited IRA) (No.
2003 DPTOBCO-Select) incorporated by
reference to Exhibit No. 4(j)(j)(j) to
Registration Statement File No. 333-31131,
filed on May 8, 2003.
(a)(n) Form of Guaranteed Minimum Death Benefit
("GMDB") Rider (No. 2003 GMDB-RUorAR)
incorporated by reference to Exhibit No.
4(a)(i) to Registration Statement File No.
333-05593, filed on May 8, 2003.
(a)(o) Form of Guaranteed Minimum Death Benefit
("GMDB") Rider (No. 2003 GMDB-AR)
incorporated by reference to Exhibit No.
4(a)(j) to Registration Statement File No.
333-05593, filed on May 8, 2003.
(a)(p) Form of Guaranteed Minimum Income Benefit
("GMIB") Rider (No. 2003 GMIB)
incorporated by reference to Exhibit No.
4(a)(k) to Registration Statement File No.
333-05593, filed on May 8, 2003.
(a)(q) Form of Protection Plus Optional Death
Benefit Rider (No. 2003 PPDB) incorporated
by reference to Exhibit No. 4(a)(l) to
Registration Statement File No. 333-05593,
filed on May 8, 2003.
(a)(r) Form of Enhanced Guaranteed Principal
Benefit ("Enhanced GPB") Rider (No. 2003
GPB) incorporated by reference to Exhibit
No. 4(a)(m) to Registration Statement File
No. 333-05593, filed on May 8, 2003.
(a)(s) Form of Spousal Protection Rider (No. 2003
SPPRO) incorporated by reference to Exhibit
No. 4(a)(n) to Registration Statement File
No. 333-05593, filed on May 8, 2003.
(a)(t) Form of Data Pages (No. 2003 DPTOBCO)
incorporated by reference to Exhibit No.
4(a)(o) to Registration Statement File No.
333-05593, filed on May 8, 2003.
(a)(u) Form of Data Pages (No. 2003 DP)
incorporated by reference to Exhibit No.
4(a)(p) to Registration Statement File No.
333-05593, filed on May 8, 2003.
(a)(v) Form of Data Pages (No. 2003 DPCORE)
incorporated by reference to Exhibit No.
4(a)(q) to Registration Statement File No.
333-05593, filed on May 8, 2003.
(a)(w) Form of Data Pages (No. 2003 DPElite)
incorporated by reference to Exhibit No.
4(z)(z) to Registration Statement File No.
333-60730, filed on May 8, 2003.
(a)(x) Form of Data Pages (No. 2003 DPPlus)
incorporated by reference to Exhibit No.
4(c)(c)(c) to Registration Statement File
No. 333-64749, filed on May 8, 2003.
II-3
Exhibits No.
(5) (a) Opinion and Consent of Robin Wagner, Vice
President and Counsel, as to the legality
of the securities being offered, previously
filed with this Registration Statement File
No. 333-104713 on April 23, 2003.
(b) Opinion and Consent of Dodie Kent, Esq.,
Vice President and Counsel of Equitable, as
to the legality of the securities being
registered.
(c) Copy of the Internal Revenue Service
determination letter regarding qualification
under Section 401 of the Internal Revenue
Code, incorporated by reference to Exhibit
5(b) to the Registration Statement on Form
S-3 (File No. 33-88456), filed August 31,
1995.
(23) (a) Consent of PricewaterhouseCoopers LLP.
(b) Consent of Counsel see Exhibit 5(b).
(24) (a) Powers of Attorney incorporated herein by
reference to Exhibit No. 23(c) to the
Registration Statement (File No. 333-24009)
filed on April 26, 2000.
(b) Powers of Attorney, incorporated herein by
reference to Exhibit No. 7(a) to
Registration Statement on Form S-6, File No.
333-17663, filed on April 28, 2000.
(c) Powers of Attorney, incorporated herein by
reference to Exhibit No. 27(n)(iii) to
Registration Statement on Form N-6, File No.
333-103199, filed on April 4, 2003.
(d) Powers of Attorney, incorporated herein
by reference to Exhibit 10.(a) Registration
Statement File No. 2-30070 on Form N-4,
filed on April 19, 2004.
II-4
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 of
distribution not previously
disclosed in the registration
statement or any material change to
such information in the registration
statement;
provided, however, that paragraphs (a)(1)(i) and (a)(1)(ii) do not
apply if the information required to be included in a post-effective
amendment by those paragraphs is contained in periodic reports filed
with or furnished to the Commission by the registrant pursuant to
Section 13 or 15(d) of the Securities Act of 1934 that are incorporated
by reference in the registration statement.
(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.
II-5
(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-6
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 Registration
Statement to be signed on its behalf by the undersigned, thereunto duly
authorized, in the City and State of New York, on this 23rd day of April, 2004.
THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE
UNITED STATES
(Registrant)
By: /s/ Dodie Kent
------------------
Dodie Kent
Vice President
The Equitable Life Assurance Society
of the United States
As required by the Securities Act of 1933, this amendment to the
Registration Statement has been signed by the following persons in the
capacities and on the date indicated:
PRINCIPAL EXECUTIVE OFFICERS:
*Christopher M. Condron Chairman of the Board, President,
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 Christina Johnson
Christopher M. Condron John C. Graves Scott D. Miller
Henri de Castries Donald J. Greene Joseph H. Moglia
Claus-Michael Dill Mary R. (Nina) Henderson Peter J. Tobin
Joseph L. Dionne James F. Higgins Stanley B. Tulin
Denis Duverne W. Edwin Jarmain
*By: /s/ Dodie Kent
------------------------
Dodie Kent
Attorney-in-Fact
April 23, 2004
EXHIBIT INDEX
EXHIBIT NO. TAG VALUE
5(b) Opinion and Consent of Counsel EX-99.5b
23(a) Consent of PricewaterhouseCoopers LLP EX-99.23a