<PAGE>
Supplement Dated August 28, 2000 to
Prospectus Dated May 1, 2000 for
Pacific Select Variable Annuity II, a variable annuity contract
issued by Pacific Life Insurance Company
-----------------------------------------------------
Termination of the The assets of Pacific Select Fund Bond and Income
Bond and Portfolio, the underlying Portfolio for the Bond
Income Investment and Income Subaccount, are scheduled to be
Option transferred to the Pacific Select Fund Managed Bond
Portfolio in exchange for shares of the Managed
Other terms of your Bond Portfolio (the "reorganization") on September
policy will not change 22, 2000, at or about 4:00 p.m. Eastern time (the
as a result of the "reorganization date"). At the same time that this
transaction described reorganization occurs, the corresponding Subaccount
in this supplement. Units and Subaccount Annuity Units of the Bond and
Income Subaccount will automatically be transferred
to the Managed Bond Subaccount in exchange for
corresponding units of that Investment Option. The
Bond and Income Subaccount will cease to exist.
You need not take any action regarding the
reorganization. The transfer of your units will
occur automatically on the reorganization date.
If you do not wish to participate in the Managed
Bond Investment Option, you can transfer among the
Investment Options as usual. There will be no
charge on transfers for at least 60 days from the
reorganization date. Thereafter, Pacific Life
reserves the right to impose transfer fees for
transfers as stated in the Prospectus, but there is
no current plan to do so. Any transfer made during
this time will not count toward any limitation we
may impose on the number of transfers you may make
annually.
Unless you instruct us otherwise, to the extent any
outstanding instruction you have on file with us
designates the Bond and Income Subaccount, the
instruction will be deemed an instruction for the
Managed Bond Subaccount. Instructions include, but
are not limited to instructions for Purchase
Payment allocations, any transfer or exchange
instructions, including instructions under the
Portfolio Rebalancing, Dollar Cost Averaging, and
Sweep Programs, and Partial Withdrawal
instructions.
-----------------------------------------------------
Postponement of the The reorganization date may be postponed if:
Transaction
. the New York Stock Exchange or another primary
If the reorganization trading market for Portfolio securities of the
date of the Bond and Bond and Income Portfolio and/or the Managed Bond
Income Portfolio is Portfolio is closed to trading or otherwise
postponed, the restricted, or
corresponding transfer
from the Bond and . trading or the reporting of trading on the New
Income Variable York Stock Exchange or other primary trading
Account to the Managed market is disrupted and the Fund's board of
Bond Variable Account trustees believes the value of the net assets in
will also be either Portfolio cannot be accurately appraised.
postponed.
If either of these events occur, the transaction
described above will be postponed until the first
business day after trading is fully resumed and
reporting has been restored.
<PAGE>
This supplement changes page 7 of the Prospectus with
the following:
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Other Expenses
An Overview of The table also shows the Fund expenses for each
Pacific Select Portfolio based on expenses in 1999, adjusted to
Variable Annuity reflect recently reduced custody fees. To help limit
II: Fees and Fund expenses, effective July 1, 2000 we have
Expenses Paid by contractually agreed to waive all or part of our
the Pacific Select investment advisory fees or otherwise reimburse each
Fund: Other Portfolio for operating expenses (including
Expenses is organizational expenses, but not including advisory
replaced fees, additional costs associated with foreign
investing and extraordinary expenses) that exceed an
annual rate of 0.10% of its average daily net assets.
Such waiver or reimbursement is subject to repayment to
us to the extent such expenses fall below the 0.10%
expense cap. For each Portfolio, our right to repayment
is limited to amounts waived and/or reimbursed that
exceed the new 0.10% expense cap, but do not exceed the
previously established 0.25% expense cap. Any amounts
repaid to us will have the effect of increasing
expenses of the Portfolio, but not above the 0.10%
expense cap. There is no guarantee that we will
continue to cap expenses after December 31, 2001. In
1999, Pacific Life reimbursed the Small-Cap Index
Portfolio $96,949.
<TABLE>
<CAPTION>
-----------------------------------------------------------------------
Less
Advisory Other Total adviser's Total net
Portfolio fee expenses expenses+ reimbursement expenses
-----------------------------------------------------------------------
As an annual % of average daily net assets
<S> <C> <C> <C> <C> <C>
Aggressive Equity 0.80 0.04 0.84 -- 0.84
Emerging Markets/1/ 1.10 0.19 1.29 -- 1.29
Diversified
Research/2/ 0.90 0.05 0.95 -- 0.95
Small-Cap Equity 0.65 0.04 0.69 -- 0.69
International
Large-Cap/2/ 1.05 0.10 1.15 -- 1.15
Bond and Income 0.60 0.05 0.65 -- 0.65
Equity 0.65 0.03 0.68 -- 0.68
I-Net Tollkeeper/2/ 1.50 0.14 1.64 (0.04) 1.60
Multi-Strategy 0.65 0.04 0.69 -- 0.69
Equity Income 0.65 0.04 0.69 -- 0.69
Growth LT 0.75 0.03 0.78 -- 0.78
Mid-Cap Value 0.85 0.07 0.92 -- 0.92
Equity Index/3/ 0.25 0.04 0.29 -- 0.29
Small-Cap Index 0.50 0.30 0.80 (0.20) 0.60
REIT 1.10 0.15 1.25 (0.05) 1.20
International Value 0.85 0.09 0.94 -- 0.94
Government Securities 0.60 0.05 0.65 -- 0.65
Managed Bond/1/ 0.60 0.05 0.65 -- 0.65
Money Market/1/ 0.35 0.04 0.39 -- 0.39
High Yield Bond/1/ 0.60 0.05 0.65 -- 0.65
Large-Cap Value 0.85 0.08 0.93 -- 0.93
-----------------------------------------------------------------------
</TABLE>
/1/ Total adjusted net expenses for these Portfolios in
1999, after deduction of an offset for custodian
credits were: 1.28% for Emerging Markets Portfolio,
0.64% for Managed Bond Portfolio, 0.38% for Money
Market Portfolio, and 0.64% for High Yield Bond
Portfolio.
/2/ Expenses are estimated. There were no actual
advisory fees or expenses for these Portfolios in
1999 because the Portfolios started after December
31, 1999.
/3/ Total adjusted net expenses for the Equity Index
Portfolio in 1999, after deduction of an offset for
custodian credits, were 0.28%. The advisory fee for
the Portfolio has also been adjusted to reflect the
advisory fee increase effective January 1, 2000.
The actual advisory fee and total adjusted net
expenses for this Portfolio in 1999, after
deduction of an offset for custodian credits, were
0.16% and 0.19%, respectively.
+ The Fund has adopted a brokerage enhancement 12b-1
plan, under which brokerage transactions may be
placed with broker-dealers in return for credits,
cash, or other compensation that may be used to
help promote distribution of Fund shares. There are
no fees or charges to any Portfolio under this
plan, although the Fund's distributor may defray
expenses of up to approximately $300,000 for the
year 2000, which it might otherwise incur for
distribution. If such defrayed amount were
considered a Fund expense, it would represent
approximately .0023% or less of any Portfolio's
average daily net assets.
2
<PAGE>
---------------------------------------------------------
Examples is amended The following is added to Examples on page 8 of the
Prospectus:
The following table shows the expenses you would pay on
each $1,000 you invested if, at the end of each period,
you: annuitized your Contract; surrendered your
Contract and withdrew the Contract Value, or did not
annuitize or surrender, but left the money in your
Contract.
These examples assume the following:
. the Contract Value starts at $35,000
. the Investment Options have an annual return of 5%
. the Annual Fee is deducted for Contract Values less
than $50,000, after deducting any outstanding loan
and interest
. no Annual Fee is deducted for annuitized amounts or
Contract Values of $50,000 or more.
These examples do not show past or future expenses.
Your actual expenses in any year may be more or less
than those shown here.
<TABLE>
<CAPTION>
---------------------------------------------------------------------------------------
Expenses if you did
not annuitize or
Expenses if you Expenses if you surrender, but left
annuitized surrendered the money in your
your Contract ($) your Contract ($) Contract ($)
---------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Variable Account 1 yr 3 yr 5 yr 10 yr 1 yr 3 yr 5 yr 10 yr 1 yr 3 yr 5 yr 10 yr
---------------------------------------------------------------------------------------
Aggressive Equity 87 72 124 265 87 117 133 265 24 72 124 265
---------------------------------------------------------------------------------------
Emerging Markets 91 86 146 308 91 131 155 308 28 86 146 308
---------------------------------------------------------------------------------------
Diversified Research 88 76 129 276 88 121 138 276 25 76 129 276
---------------------------------------------------------------------------------------
Small-Cap Equity 84 65 112 240 84 110 121 240 21 65 112 240
---------------------------------------------------------------------------------------
Bond and Income 85 68 117 250 85 113 126 250 22 68 117 250
---------------------------------------------------------------------------------------
International Large-Cap 90 82 139 295 90 127 148 295 27 82 139 295
---------------------------------------------------------------------------------------
Equity 85 68 116 248 85 113 125 248 22 68 116 248
---------------------------------------------------------------------------------------
I-Net Tollkeeper 94 95 162 338 94 140 171 338 31 95 162 338
---------------------------------------------------------------------------------------
Multi-Strategy 85 68 116 249 85 113 125 249 22 68 116 249
---------------------------------------------------------------------------------------
Equity Income 85 68 116 249 85 113 125 249 22 68 116 249
---------------------------------------------------------------------------------------
Growth LT 86 71 121 259 86 116 130 259 23 71 121 259
---------------------------------------------------------------------------------------
Mid-Cap Value 87 75 128 273 87 120 137 273 24 75 128 273
---------------------------------------------------------------------------------------
Equity Index 81 55 95 206 81 100 104 206 18 55 95 206
---------------------------------------------------------------------------------------
Small-Cap Index 85 68 116 249 85 113 125 249 22 68 116 249
---------------------------------------------------------------------------------------
REIT 90 83 142 300 90 128 151 300 27 83 142 300
---------------------------------------------------------------------------------------
International Value 88 75 129 275 88 120 138 275 25 75 129 275
---------------------------------------------------------------------------------------
Government Securities 85 67 114 245 85 112 123 245 22 67 114 245
---------------------------------------------------------------------------------------
Managed Bond 85 66 114 244 85 111 123 244 22 66 114 244
---------------------------------------------------------------------------------------
Money Market 82 59 100 217 82 104 109 217 19 59 100 217
---------------------------------------------------------------------------------------
High Yield Bond 85 66 114 244 85 111 123 244 22 66 114 244
---------------------------------------------------------------------------------------
Large-Cap Value 87 75 128 274 87 120 137 274 24 75 128 274
---------------------------------------------------------------------------------------
</TABLE>
3
