Retirement Plan for Small Businesses Offers Owners and Employees Guaranteed Income for Life, Protection from Stock Market Volatility, and 'Second Chance' to Save Enough to Support Comfortable Lifestyle in Retirement

NEW YORK, N.Y., November 4, 2003 - Broadening its portfolio of retirement products, New York Life Insurance Company today introduced its products for the 412(i) Defined Benefit Pension Plan market . Funded by New York Life annuities and life insurance , a 412(i) plan can offer significant retirement planning advantages for small-business owners and their employees, including the ability to achieve retirement goals-free from stock market risk.

Although 401(k) defined contribution plans are popular, many are vulnerable to market fluctuations and contribution limitations that may limit potential retirement income. In contrast, a 412(i) Defined Benefit Pension Plan allows small-business owners to make retirement plan contributions that are generally tax-deductible and accumulate retirement benefits for themselves and their employees that are not subject to stock market volatility.

"For some small-business owners, the substantial costs of building a business, buying a home and paying for children's college educations may keep them from saving enough for a secure retirement," said Michael Gallo, senior vice president of New York Life's Individual Life Department. "Unlike 401(k)-type retirement plans, 412(i) plans may allow generally larger deductible contributions and provide other unique advantages, making them attractive to business owners who want to fund a guaranteed retirement benefit for themselves and their workers."

Gallo added, "A key attribute of a 412(i) Defined Benefit Pension Plan funded with New York Life products is that the plan benefits are free of market risk and guaranteed by the claims-paying ability of New York Life, one of the country's strongest insurers, and its wholly-owned subsidiary, New York Life Insurance and Annuity Corporation. New York Life is synonymous with financial strength and stability, and customers feel comfortable entrusting us with their retirement savings."

A 412(i) Defined Benefit Pension Plan offers a number of advantages:

• The business owner may make potentially greater tax-deductible contributions than under traditional defined benefit pension plans
• Plan benefits are free of market risk and guaranteed by the claims-paying ability of New York Life, as long as premiums are paid on time
• Administration is usually simpler and less expensive than for a traditional defined benefit plan, since 412(i) plans are exempt from minimum funding requirements

The 412(i) Defined Benefit Plan should be considered by business owners who:

• Are age 45 or older
• Own a small company or professional practice that is highly profitable and has a steady revenue stream and cash flow, in order to fund the ongoing required annual premiums
• Want a potentially significant annual tax deduction derived from funding such a meaningful benefit for themselves and their employees

New York Life and NYLIAC have received among the highest ratings for financial strength from four of the major independent rating agencies, Moody's, A.M. Best, Standard & Poor's and Fitch according to Third Party Ratings Reports (10/15/03).

New York Life Insurance Company, a Fortune 100 company, is the largest mutual life company in the United States and one of the largest life insurers in the world. Founded in 1845 and headquartered in New York City, New York Life offers life insurance, and through its affiliates, annuities and long-term care insurance. New York Life Investment Management LLC, a New York Life affiliate, provides institutional asset management, retirement planning and trust services. Other New York Life affiliates provide an array of securities products and services, as well as institutional and retail mutual funds.

Contacts

Lisa Fels
New York Life
(212) 576-7937
lisa_fels@newyorklife.com

Marcy Kaplicer
Edelman
212-819-4854
marcy.kaplicer@edelman.com

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