VARIABLE ANNUITY ACCOUNT B
Aetna Life Insurance and Annuity Company
Supplement Dated June 1, 1999
to May 3, 1999 Prospectus
GENERAL DESCRIPTION OF GET E
Series E of the Aetna GET Fund (GET E) is an investment option that may be
available during the accumulation phase of the contract. Aetna Life Insurance
and Annuity Company (the Company, we, our) makes a guarantee, as described
below, when you direct money into GET E. Aeltus Investment Management, Inc. is
the investment adviser to GET E.
We will offer GET E shares only during its offering period, which is scheduled
to run from June 15, 1999 through the close of business on September 14, 1999.
GET E may not be available under your contract, your plan or in your state.
Please read the GET E prospectus for a more complete description of GET E,
including its charges and expenses.
INVESTMENT OBJECTIVE OF GET E
GET E seeks to achieve maximum total return, without compromising a targeted
minimum rate of return, by participating in favorable equity market performance
during its guarantee period.
GET E's guarantee period runs from September 15, 1999 through September 14,
2004. During the offering period, all GET E assets will be invested in money
market instruments, and during the guarantee period will be invested in a
combination of fixed income and equity securities.
THE GET FUND GUARANTEE
The guarantee period for GET E will end on September 14, 2004, which is GET E's
maturity date. We guarantee that the value of an accumulation unit of the GET E
subaccount under the contract on the maturity date (as valued after the close
of business on September 14, 2004), will not be less than its value as
determined after the close of business on the last day of the offering period.
If the value on the maturity date is lower than it was on the last day of the
offering period, we will transfer funds from our general account to the GET E
subaccount to make up the difference.
If you withdraw or transfer funds from GET E before the maturity date, we will
process the transactions at the actual unit value next determined after we
receive your order. The guarantee will not apply to these amounts or to amounts
deducted as a maintenance fee, if applicable.
MATURITY DATE
Before the maturity date, we will send a notice to each contract holder who has
amounts in GET E. This notice will remind you that the maturity date is
approaching and that you must choose other investment options for your GET E
amounts. If you do not make a choice, on the maturity date we will transfer
your GET E amounts to another available series of the GET Fund that is
accepting deposits. If no GET Fund series is available, we will transfer the
account value to the fund or funds designated by the Company. We will make
these transfers as of the unit value next determined after the transfer.
INCOME PHASE
GET E is not available during the income phase. You should not select this
option if you wish to begin income payments or to make other withdrawals or
transfers before the maturity date. You must transfer your GET E account value
to another available investment option before you may elect an income phase
payment option. As stated above, the Company's guarantee will not apply to
amounts you withdraw or transfer before the maturity date.
X.GETERETAIL-99 June 1999
<PAGE>
REINVESTMENT
Some contracts allow you to reinvest all or a portion of the proceeds after a
full withdrawal. If you withdraw amounts from GET E and then elect to reinvest
them, we will reinvest them in a GET Fund series that is then accepting
deposits, if one is available. If one is not available, we will reallocate your
GET E amounts among the other investment options in which you were invested, on
a pro rata basis.
The following information supplements the Fee Table contained in the
prospectus:
FEES DEDUCTED FROM YOUR INVESTMENTS IN THE SUBACCOUNTS
In addition to the amounts currently listed under the heading "Fee Table" in
the prospectus, we will make a daily deduction of a GET Guarantee Charge, equal
on an annual basis to the percentage shown below, from the amounts allocated to
the GET E investment option:
<TABLE>
<S> <C>
GET E Guarantee Charge (deducted daily during the Guarantee Period) .. 0.50%
Maximum Total Separate Account Expenses .................................. 1.90%(1)
</TABLE>
(1) The total separate account expenses that apply to your contract may be
lower. Please refer to the "Fee Table" section of your prospectus.
The following information supplements the Fund Expense Table contained in the
prospectus
Aetna GET Fund Series E Annual Expenses
(As a percentage of the average net assets)
<TABLE>
<CAPTION>
Investment Total Fund Annual Expenses
Advisory Fees(1) Other Expenses(2) (after expense reimbursement)(3)
---------------- ----------------- -------------------------------
<S> <C> <C> <C>
Aetna GET Fund Series E 0.60% 0.15% 0.75%
</TABLE>
For more information regarding expenses paid out of assets of the fund, see the
GET E prospectus.
The following information supplements the Hypothetical Examples contained in
the prospectus.
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(1) The Investment Advisory Fee will be 0.25% during the offering period. An
annual management fee of 0.60% will apply during the guarantee period.
(2) "Other Expenses" include an annual fund administrative fee of 0.075% of the
average daily net assets of GET E and any additional direct fund expenses.
(3) The investment adviser is contractually obligated through GET E's maturity
date to waive all or a portion of its investment advisory fee and/or its
administrative fee and/or to reimburse a portion of the fund's other
expenses in order to ensure that the Total Fund Annual Expenses do not
exceed 0.75% of the fund's average daily net assets. It is not expected
that the fund's actual expenses without this waiver or reimbursement will
exceed this amount.
<PAGE>
Hypothetical Examples--Aetna GET Fund Series E
The following hypothetical example shows the fees and expenses paid over time
if you invest $1,000 in the GET E investment option under the contract (until
GET E's maturity date) and a 5% annual return on the investment.(4)
<TABLE>
<CAPTION>
Example A Example B
<S> <C> <C> <C> <C> <C> <C>
o This example is purely If you withdraw your entire If at the end of the periods
hypothetical. account value at the end of shown you (1) leave your
the periods shown, you would entire account value invested
o It should not be pay the following expenses, or (2) select an income phase
considered a including any applicable early payment option, you would pay
representation of past or withdrawal charge: the following expenses (no
future expenses or early withdrawal charge is
expected returns. reflected):*
o Actual expenses and/or
returns may be more or
less than those shown in
this example.
1 year 3 years 5 years 1 year 3 years 5 years
------ ------- ------- ------ ------- -------
Aetna GET Fund Series E $90 $137 $177 $27 $83 $142
</TABLE>
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(4) The examples shown above reflect an annual mortality and expense risk
charge of 1.25%, an annual contract administrative expense charge of 0.15%,
an annual GET E guarantee charge of 0.50%, a $30 annual maintenance fee
that has been converted to a percentage of assets equal to .0.022%, and all
charges and expenses of the GET E Fund. Example A reflects an early
withdrawal charge of 7% of the purchase payments at the end of year 1, 6%
at the end of year 3, and 4% at the end of year 5. (The expenses that you
would pay under your contract may be lower. Please refer to the "Fee Table"
section of your prospectus.)
* This example does not apply if during the income phase, you select a
nonlifetime payment option with variable payments and a lump-sum withdrawal
within three years after payments start. In this case, the lump sum payment
is treated as a withdrawal during the accumulation phase and may be subject
to an early withdrawal charge (refer to Example A).
<PAGE>
APPENDIX DESCRIPTION OF UNDERLYING FUNDS
Aetna GET Fund (Series E)
Investment Objective
Seeks to achieve maximum total return without compromising a minimum targeted
return (Targeted Return) by participating in favorable equity market
performance during the guarantee period, from September 15, 1999, through
September 14, 2004, the maturity date.
Policies
Prior to September 15, 1999, assets are invested entirely in money market
instruments. After that date, assets are allocated between equities and fixed
income securities. Equities consist primarily of common stocks. Fixed income
securities consist primarily of short- to intermediate-term U.S. Government
securities. The investment adviser uses a proprietary computer model to
determine the percentage of assets to allocate between the fixed and the equity
components. As the value of the equity component declines, more assets are
allocated to the fixed component. Series E may also invest in other types of
equity and debt securities and in futures.
Risks
The principal risks of investing in GET E are those generally attributable to
stock and bond investing. The success of Series E's strategy depends on the
investment adviser's skill in allocating assets between the equity and fixed
components and in selecting investments within each component. Because Series E
invests in both stocks and bonds, it may underperform stock funds when stocks
are in favor and underperform bond funds when bonds are in favor. The risks
associated with investing in stocks include sudden and unpredictable drops in
the value of the market as a whole and periods of lackluster or negative
performance. The principal risk associated with investing in bonds is that
interest rates may rise, which generally causes bond prices to fall. If at the
inception of, or any time during, the guarantee period interest rates are low,
Series E assets may be largely invested in the fixed component in order to
increase the likelihood of achieving the Targeted Return at the maturity date.
The effect of low interest rates on Series E would likely be more pronounced at
the beginning of the guarantee period as the initial allocation of assets would
include more fixed income securities. In addition, if during the guarantee
period the equity markets experienced a major decline, Series E assets may
become largely invested in the fixed component in order to increase the
likelihood of achieving the Target Return at the maturity date. Use of the
fixed component reduces Series E's ability to participate as fully in upward
equity market movements, and therefore represents some loss of opportunity, or
opportunity cost, compared to a portfolio that is fully invested in equities.
Investment Adviser: Aeltus Investment Management, Inc.
X.GETERETAIL-99 June 1999
