Rule 497(e)
File Nos. 333-01153
and 811-07549
SCHWAB SELECT ANNUITY(TM)
Issued by Great-West Life & Annuity Insurance Company
Variable Annuity-1 Series Account
Supplement dated January 24, 2000 to the
Prospectus for the Schwab Select Annuity
dated May 1, 1999
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On March 3, 2000, the eight Sub-Accounts
previously closed to new Investments will be
discontinued from the Schwab Select Annuity.(TM)
Any remaining balances will be reallocated to a
Substitute Sub-Account as outlined below.
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Great-West Life & Annuity Insurance Company has requested an order from the
Securities and Exchange Commission ("SEC") to permit a substitution of the
shares of the Portfolios held in eight Sub-Accounts (the "Deleted
Sub-Accounts"). It is expected that the SEC will issue the order in early
February approving the substitution. After the order is issued, your Annuity
Account Value, if any, held in the Deleted Sub-Accounts will be reallocated to
the following Sub-Accounts (the "Substitute Sub-Accounts") on March 3, 2000.
<TABLE>
<S> <C> <C> <C> <C> <C> <C>
-------------------------------------------------------- -----------------------------------------------------
Deleted Sub-Accounts Substitute Sub-Accounts
-------------------------------------------------------- -----------------------------------------------------
-------------------------------------------------------- -----------------------------------------------------
Van Eck Hard Assets Janus Aspen Worldwide Growth
-------------------------------------------------------- -----------------------------------------------------
-------------------------------------------------------- -----------------------------------------------------
Lexington Emerging Markets Janus Aspen International Growth
-------------------------------------------------------- -----------------------------------------------------
-------------------------------------------------------- -----------------------------------------------------
Stein Roe Small Company Growth SAFECO RST Growth
(formerly Stein Roe Special Venture)
-------------------------------------------------------- -----------------------------------------------------
-------------------------------------------------------- -----------------------------------------------------
INVESCO VIF Total Return INVESCO VIF Equity Income
-------------------------------------------------------- -----------------------------------------------------
-------------------------------------------------------- -----------------------------------------------------
Janus Aspen Aggressive Growth,
Alger American Small Capitalization, Alger American Growth
Strong Discovery II and
American Century VP Capital Appreciation
-------------------------------------------------------- -----------------------------------------------------
</TABLE>
With regard to the substitutions involving the Van Eck Hard Assets and the Alger
American Small Capitalization Sub-Accounts, although the corresponding
underlying portfolios have essentially the same investment objectives, we would
like to call to your attention certain differences in the means by which they
pursue these objectives.
The Van Eck Worldwide Hard Assets Fund invests primarily in securities of
companies that derive at least 50% of gross revenue or profit from exploration,
development, production or distribution of precious metals, natural resources,
real estate or commodities. The Janus Aspen Worldwide Growth Portfolio invests
primarily in common stocks of companies of any size throughout the world that
are selected for their growth potential.
The stated investment strategy of the Alger American Small Capitalization
Portfolio is to invest primarily in small-cap companies and the stated
investment objective of the Alger American Growth Portfolio is to invest
primarily in companies with a market capitalization in excess of $1 billion.
Despite its name, the Alger American Small Capitalization Portfolio has been
classified as a mid-cap fund by the Morningstar rating organization due to the
nature of its investment portfolio. The Alger American Growth Portfolio has been
classified by Morningstar as a large-cap fund.
For more information, please refer to the prospectuses for these Portfolios.
What You Need to Do
You may transfer your account balance in any of the Deleted Sub-Accounts to one
or more of the available Sub-Accounts offered through the Schwab Select Annuity
on or before March 2, 2000. Otherwise, your balance will be automatically
reallocated to the corresponding Substitute Sub-Accounts as outlined above. Of
course, after March 3, 2000, you may transfer account balances that have been
reallocated to the Substitute Sub-Accounts to any one or more of the available
Sub-Accounts.
The following transfers will not be counted as one of the twelve free transfers
permitted in a calendar year and will not result in a transfer fee being
assessed if you have already used your twelve free transfers:
o Any transfer out of a Deleted Sub-Account prior to March 3, 2000. o Any
transfer out of a Substitute Sub-Account between March 3, 2000 and April 3,
2000.
This transfer fee waiver will be in effect until 4:00 p.m. ET, April 3, 2000.
How to transfer to Another Sub-Account
To transfer assets or if you have any questions and would like to speak with a
customer service representative, please call 1-800-838-0650, Monday - Friday,
6:00 a.m. to 4:30 p.m. Pacific time.
Please retain this notification along
with your Prospectus for future reference.
