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 April 26, 1999 to the
Prospectus for The Schwab Variable Annuity
dated May 1, 1998
Effective June 1, 1999, the following Sub-Accounts will be closed to
Contributions and Transfers: Van Eck Worldwide Hard Assets, Lexington Emerging
Markets, Stein Roe Special Venture, Janus Aspen Aggressive Growth, Alger
American Small Capitalization, Strong Discovery II, American Century VP Capital
Appreciation, and the INVESCO VIF - Total Return (the "Deleted Sub-Accounts").
Any Contract Owner attempting to make Contributions or effect Transfers
(including those utilizing an Automatic Contribution Plan or one of the custom
transfer features: Dollar Cost Averaging or Rebalancer Option) involving the
Deleted Sub-Accounts should contact the Schwab Insurance & Annuity Service
Center at 1-800-838-0650 or P.O. Box 7666, San Francisco, California 94120-7666
to make alternate arrangements. If you fail to make alternate arrangements,
Schwab will try to promptly contact you to request alternative allocation
instructions. If Schwab is unable to contact you, Contributions allocated to the
Deleted Sub-Accounts will be returned to you with a request that you provide
alternate allocation instructions and Transfer Requests, including those
utilizing a customer transfer feature, will not be processed.
Great-West Life & Annuity Insurance Company ("Great-West") is seeking an order
from the Securities and Exchange Commission ("SEC") to permit a substitution of
the shares of the Portfolios held in the Deleted Sub-Accounts. If the
substitution transactions are approved, your Annuity Account Value, if any, held
in the Deleted Sub-Accounts will be transferred to the following Sub-Accounts
(the "Substituted Sub-Accounts") on the date designated by Great-West upon
receipt of the SEC order:
<TABLE>
---------------------------------------------- -------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Deleted Sub-Accounts Substituted Sub-Accounts
---------------------------------------------- -------------------------------------------
---------------------------------------------- -------------------------------------------
Van Eck Hard Assets Janus Worldwide Growth
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Lexington Emerging Markets Janus International Growth
---------------------------------------------- -------------------------------------------
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Stein Roe Special Venture SAFECO RST Growth
---------------------------------------------- -------------------------------------------
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INVESCO VIF Total Return INVESCO VIF Equity Income
---------------------------------------------- -------------------------------------------
---------------------------------------------- -------------------------------------------
Janus Aggressive Growth, Alger American
Small Capitalization, Strong Discovery II Alger American Growth
and American Century VP Capital Appreciation
---------------------------------------------- -------------------------------------------
</TABLE>
At any time prior to the proposed substitution, you may transfer your account
balance from the Deleted Sub-Accounts to any of the remaining Sub-Accounts
available under your Contract 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
Substituted Sub-Accounts 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.
