Supplement to Prospectus Dated May 1, 1997
Aetna Life Insurance and Annuity Company
Variable Annuity Account B
Aetna Marathon Plus
The prospectus dated May 1, 1997 is amended as follows:
Cover:
The following Funds will be replaced with the designated Substitute Funds after
the close of business of the New York Stock Exchange on November 26, 1997:
<TABLE>
<CAPTION>
Replaced Fund Substitute Fund
<S> <C>
MFS Emerging Growth Series Portfolio Partners MFS Emerging Equities Portfolio
MFS Research Series Portfolio Partners MFS Research Growth Portfolio
MFS Value Series Portfolio Partners MFS Value Equity Portfolio
American Century VP Capital Appreciation Portfolio Partners MFS Research Growth Portfolio
(Formerly "TCI Growth")
Alger American Small Capitalization Portfolio Portfolio Partners MFS Emerging Equities Portfolio
Alger American MidCap Growth Portfolio Portfolio Partners T.Rowe Price Growth Equity Portfolio
Alger American Growth Portfolio Portfolio Partners T.Rowe Price Growth Equity Portfolio
Janus Aspen Short-Term Bond Portfolio Aetna Variable Encore Fund (money market)
</TABLE>
The following Funds will be removed from the list of Funds as of the close of
business of the New York Stock Exchange on November 26, 1997, since they will be
closed to new investments after that date (except reinvested dividends and
capital gains earned on amounts already invested in the Fund through the
Separate Account):
<TABLE>
<CAPTION>
Closed
<S> <C>
Alger American Balanced Portfolio Federated Utility Fund II
Alger American Income and Growth Portfolio Fidelity VIP II Investment Grade Bond Portfolio
Alger American Leveraged AllCap Portfolio Lexington Emerging Markets Fund, Inc.
Federated American Leaders Fund II Lexington Natural Resources Trust
Federated Fund for U.S. Government Securities II American Century VP Balanced (formerly "TCI Balanced")
Federated High Income Bond Fund II American Century VP International (formerly "TCI
International")
</TABLE>
The Date of this Supplement is August 21, 1997
<PAGE>
Fee Table - 2
The table under Annual Expenses of the Funds is amended by deleting the Replaced
Funds and the Closed Funds and adding the following Substitute Funds:
<TABLE>
<CAPTION>
Investment Advisory Other Expenses
Fees (after expense (after expense Total Annual Fund
reimbursement) reimbursement) Expenses
<S> <C> <C> <C>
Portfolio Partners MFS Emerging Equities
Portfolio .70%(1) .13% .83%(2)
Portfolio Partners MFS Research Growth
Portfolio .70%(1) .15% .85%(2)
Portfolio Partners MFS Value Equity Portfolio .65% .25% .90%(2)
Portfolio Partners T.Rowe Price Growth
Equity Portfolio .60% .15% .75%(2)
</TABLE>
(1) The advisory fee is .70% of the first $500 million in assets and .65% on
the excess.
(2) The Company has agreed to reimburse the Fund for expenses and/or waive its
fees so that the aggregate expenses will not exceed this amount through
April 30, 1999. Without such reimbursements or waivers, Total Annual Fund
Expenses are estimated to be as follows: .87% for the Emerging Equities
Portfolio; .92% for the Research Growth Portfolio; .90% for the Value
Equity Portfolio; and .79% for the T. Rowe Price Growth Equity Portfolio.
Fee Table - 5
The hypothetical illustrations in the Fee Table are amended by deleting all
information with respect to the Replaced Funds and Closed Funds for periods
after November 26, 1997, and adding the following:
<TABLE>
<CAPTION>
EXAMPLE A EXAMPLE B
If you withdraw the entire Account Value If you do not withdraw the entire Account
at the end of the periods shown, you Value, or if you annuitize at the end of
would pay the following expenses, the periods shown, you would pay the
including any applicable deferred sales following expenses (no deferred sales
charge: charge is reflected):
1 year 3 yrs 5 yrs 10 yrs 1 year 3 yrs 5 yrs 10 yrs
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Portfolio Partners MFS
Emerging Equities
Portfolio $95 $123 $155 $257 $23 $70 $120 $257
Portfolio Partners MFS
Research Growth
Portfolio $95 $124 $156 $259 $23 $70 $121 $259
Portfolio Partners MFS
Value Equity Portfolio $95 $125 $159 $264 $23 $72 $123 $264
Portfolio Partners T.Rowe
Price Growth Equity
Portfolio $95 $125 $159 $264 $23 $72 $123 $264
</TABLE>
<PAGE>
Fee Table - 7
The hypothetical illustrations in the Fee Table are amended by deleting all
information with respect to the Replaced Funds and Closed Funds for periods
after November 26, 1997, and adding the following:
<TABLE>
<CAPTION>
Contracts or Certificates Issued in New York
EXAMPLE C EXAMPLE D
If you withdraw the entire Account Value If you do not withdraw the entire Account
at the end of the periods shown, you Value, or if you annuitize at the end of
would pay the following expenses, the periods shown, you would pay the
including any applicable deferred sales following expenses (no deferred sales
charge: charge is reflected):
1 year 3 yrs 5 yrs 10 yrs 1 year 3 yrs 5 yrs 10 yrs
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Portfolio Partners MFS
Emerging Equities
Portfolio $84 $103 $136 $257 $23 $70 $120 $257
Portfolio Partners MFS
Research Growth
Portfolio $85 $104 $137 $259 $23 $70 $121 $259
Portfolio Partners MFS
Value Equity Portfolio $85 $105 $140 $264 $23 $72 $123 $264
Portfolio Partners T.Rowe
Price Growth Equity
Portfolio $85 $105 $140 $264 $23 $72 $123 $264
</TABLE>
Prospectus, Page 1
In the Section entitled Investment Options, the Substitute Funds will take the
place of the Replaced Funds after the close of business of the New York Stock
Exchange on November 26, 1997. Any amounts allocated to the Replaced Funds will
automatically be allocated to the Substitute Funds after that date. Information
about the Closed Funds will be deleted after November 26, 1997, since they will
not be eligible for the deposit of any new payments or transfers from other
Funds. The following will be added:
Portfolio Partners MFS Emerging Equities Portfolio seeks long-term growth of
capital by investing primarily in common stocks issued by companies that its
subadviser believes are early in their life cycle but which have the potential
to became major enterprises (emerging growth companies).
Portfolio Partners MFS Research Growth Portfolio seeks long-term growth of
capital and future income by investing primarily in common stocks or securities
convertible into common stocks issued by companies that the subadviser believes
to possess better-than-average prospects for long-term growth, and, to a lesser
extent, in income-producing securities including bonds and preferred stock.
Portfolio Partners MFS Value Equity Portfolio seeks capital appreciation by
investing primarily in common stocks.
Portfolio Partners T.Rowe Price Growth Equity Portfolio seeks long-term growth
of capital and, secondarily, seeks to increase dividend income by investing
primarily in common stocks issued by a diversified group of well-established
growth companies.
Aetna Life Insurance and Annuity Company serves as the investment adviser to
each Portfolio. Massachusetts Financial Services Company serves as the
subadviser to the MFS Emerging
<PAGE>
Equities, MFS Research Growth and MFS Value Equity Portfolios; and T.Rowe Price
Associates, Inc. serves as the subadviser to the T.Rowe Price Growth Equity
Portfolio.
Prospectus - Page 11
The Section in the prospectus entitled Transfers, is amended by adding the
following to the Subsections on the Dollar Cost Averaging Program and Account
Rebalancing Program:
Dollar Cost Averaging Program
Amounts being transferred into a Replaced Fund will automatically be transferred
into the Substitute Fund after the close of business of the New York Stock
Exchange on November 26, 1997, unless you have been dollar cost averaging
between the Aetna Variable Encore Fund and the Janus Aspen Short-Term Bond
Portfolio (in either direction). In that event, or if amounts are to be
transferred into a Closed Fund, your Dollar Cost Averaging will automatically
terminate after November 26, 1997. To continue with Dollar Cost Averaging after
that date, you must select Funds from the then-current list of available Funds.
Account Rebalancing Program
Amounts being transferred into a Replaced Fund will automatically be transferred
into the Substitute Fund after the close of business of the New York Stock
Exchange on November 26, 1997, unless your Rebalancing Program includes both the
Janus Aspen Short-Term Bond Portfolio and the Aetna Variable Encore Fund. In
that event, or if amounts are to be transferred into a Closed Fund, your Account
Rebalancing Program will automatically terminate after November 26, 1997. To
continue with Account Rebalancing after that date, you must select Funds from
the then-current list of available Funds.
