Rule 497(e)
File Nos. 333-01153
and 811-07549
THE SCHWAB VARIABLE ANNUITY(R)
ISSUED BY GREAT-WEST LIFE & ANNUITY INSURANCE COMPANY
VARIABLE ANNUITY-1 SERIES ACCOUNT
Supplement dated June 10, 1998 to the
Prospectus for The Schwab Variable Annuity
dated May 1, 1998
Effective July 1, 1998, the Montgomery Variable Series: International Small Cap
Fund (the "Montgomery International Fund") will be closed to Contributions and
Transfers.
Any Contract owner utilizing an Automatic Contribution Plan ("ACP") or a custom
transfer feature: Dollar Cost Averaging or Rebalancer Option involving the
Montgomery International Fund should contact the Schwab Annuity Service Center
at 1-800-838-0650 or P.O. Box 7666, San Francisco, California 94120-7666
immediately to make alternate arrangements. If you fail to make alternate
arrangements by July 1, 1998, allocations made to the Montgomery International
Fund utilizing ACP or a customer transfer feature will be directed to the Schwab
Money Market Investment Division.
Great-West Life & Annuity Insurance Company and Charles Schwab & Co., Inc. are
seeking an order from the Securities and Exchange Commission ("SEC") to permit a
substitution of the Montgomery International Fund. If allowed, shares of the
Montgomery International Fund would be substituted with shares of the American
Century VP International Fund (the "American Century Fund") and any amounts that
a Contract owner has allocated to the Montgomery International Fund will be
transferred to the American Century Fund on the date to be designated upon
receipt of the SEC order. The American Century Fund is presently available for
allocations under the Contract and is described in the Prospectus for The Schwab
Variable Annuity and in the American Century Fund Prospectus, which accompanies
The Schwab Variable Annuity Prospectus.
At any time prior to the proposed substitution, you may transfer your account
balance from the Montgomery International Fund Investment Division to any of the
remaining Investment Divisions without incurring any charges and such transfer
will not be counted as one of the twelve free transfers permitted in a calendar
year. If the substitution is approved by the SEC, Contract owners affected by
the substitution will be permitted to make one transfer of all amounts in the
American Century Fund Investment Division without incurring any charges and, so
long as the transfer is made within 30 days of the effective date of the
substitution, it will not be counted as one of the twelve free transfers
permitted in a calendar year .
This supplement should be retained with The Schwab Variable Annuity Prospectus
for future reference.
