VARIABLE ANNUITY ACCOUNT B
Aetna Life Insurance and Annuity Company
Supplement Dated February 10, 2000
to May 3, 1999 Prospectus
GENERAL DESCRIPTION OF GET I
Series I of the Aetna GET Fund (GET I) 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 I. Aeltus Investment Management, Inc.
serves as investment adviser to GET I.
We will offer GET I shares only during its offering period, which is scheduled
to run from March 15, 2000 through the close of business on June 14, 2000. GET
I may not be available under your contract, your plan or in your state. Please
read the GET I prospectus for a more complete description of GET I, including
its charges and expenses.
INVESTMENT OBJECTIVE OF GET I
GET I seeks to achieve maximum total return, without compromising a minimum
targeted return, by participating in favorable equity market performance during
the guarantee period.
GET I's guarantee period runs from June 15, 2000 through June 14, 2005. During
the offering period, all GET I assets will be invested in short-term
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 I will end on June 14, 2005 which is GET I's
maturity date. The Company guarantees that the value of an accumulation unit of
the GET I subaccount under the contract on the maturity date (as valued after
the close of business on June 14, 2005) 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 I
subaccount to make up the difference. This means that if you remain invested in
GET I until the maturity date, at the maturity date you will receive no less
than the value of your separate account investment directed to GET I as of the
last day of the offering period, less any maintenance fees or any amounts you
transfer or withdraw from the GET I subaccount. The value of dividends and
distributions made by GET I throughout the guarantee period is taken into
account in determining whether, for purposes of the guarantee, the value of
your GET I investment on the maturity date is no less than its value as of the
last day of the offering period. The guarantee does not promise that you will
earn the fund's minimum targeted return referred to in the investment
objective.
If you withdraw or transfer funds from GET I 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 I. This notice will remind you that the maturity date is
approaching and that you must choose other investment options for your GET I
amounts. If you do not make a choice, on the maturity date we will transfer
your GET I amounts to another available series of the GET Fund that is
accepting deposits. If no GET Fund series is available, we will transfer your
GET I amounts to the fund or funds designated by the Company.
INCOME PHASE
GET I 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 I 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.GETIAVAMH-00 February 2000
<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 I 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 I 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:
MAXIMUM FEES DEDUCTED FROM INVESTMENTS IN THE SEPARATE ACCOUNT
In addition to the amounts currently listed under the heading "Fee Table" in
the prospectus, we will make a daily deduction of a GET I Guarantee Charge,
equal on an annual basis to the percentage shown below, from the amounts
allocated to the GET I investment option:
GET I Guarantee Charge (deducted daily during the Guarantee Period) ...0.50%
Maximum Total Separate Account Expenses ................................1.90%(1)
(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 I Annual Expenses
(As a percentage of the average net assets)
<TABLE>
<CAPTION>
Investment Total Fund Annual Expenses
Advisory Fees2 Other Expenses3 (after expense reimbursement)4
---------------- ----------------- -------------------------------
<S> <C> <C> <C>
Aetna GET Fund Series I 0.60% 0.15% 0.75%
</TABLE>
For more information regarding expenses paid out of assets of the fund, see the
GET I prospectus.
- -----------------------
(2) The Investment Advisory Fee will be 0.25% during the offering period and
0.60% during the guarantee period.
(3) "Other Expenses" include an annual fund administrative fee of 0.075% of the
average daily net assets of GET I and any additional direct fund expenses.
(4) The investment adviser is contractually obligated through GET I'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 GET I's Total Fund Annual Expenses do not
exceed 0.75% of the fund's average daily net assets. It is not expected that
GET I's actual expenses without this waiver or reimbursement will exceed
this amount.
<PAGE>
The following information supplements the "Hypothetical Examples" contained in
the prospectus.
HYPOTHETICAL EXAMPLES--AETNA GET FUND SERIES I
Account Fees You May Incur Over Time. The following hypothetical examples show
the fees and expenses paid over time if you invest $1,000 in the GET I
investment option under the contract (until GET I's maturity date) and assume a
5% annual return on the investment.(5)
<TABLE>
<CAPTION>
- -------------------------------
> THESE EXAMPLES ARE PURELY Example A Example B
HYPOTHETICAL. If you withdraw your entire If at the end of the periods
> THEY SHOULD NOT BE account value at the end of shown you (1) leave your
CONSIDERED A REPRESENTATION the periods shown, you would entire account value invested
OF PAST OR FUTURE EXPENSES pay the following expenses, or (2) select an income phase
OR EXPECTED RETURNS. including any applicable early payment option, you would
> ACTUAL EXPENSES AND/OR withdrawal charge: pay the following expenses
RETURNS MAY BE MORE OR LESS (no early withdrawal charge is
THAN THOSE SHOWN BELOW. reflected):
- -------------------------------
1 Year 3 Years 5 Years 1 Year 3 Years 5 Years
-------- --------- --------- -------- --------- --------
<S> <C> <C> <C> <C> <C> <C>
Aetna GET Fund Series I $90 $137 $177 $27 $83 $142
</TABLE>
- -----------------------
(5) 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 I 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 I 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.)
<PAGE>
The following information supplements "Appendix III--Description of Underlying
Funds" contained in the prospectus:
Aetna GET Fund (Series I)
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 June 15, 2000 through June 14,
2005, the maturity date.
POLICIES
Prior to June 15, 2000, assets are invested entirely in short-term 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-duration U.S. Government
securities and may also consist of mortgage backed securities and corporate
obligations. 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.
RISKS
The principal risks of investing in Series I are those generally attributable
to stock and bond investing. The success of Series I'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 I
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 I 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 I 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 I assets may
become largely invested in the fixed component in order to increase the
likelihood of achieving the Targeted Return at the maturity date. Use of the
fixed component reduces Series I'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.
The following information supplements Appendix IV--"Condensed Financial
Information" contained in the prospectus:
<PAGE>
Appendix IV--"Condensed Financial Information", is amended to include financial
data for the nine-month period ending September 30, 1999, as follows.
Condensed Financial Information
- --------------------------------------------------------------------------------
(Selected data for accumulation units outstanding throughout each period)
================================================================================
The condensed financial information presented below for the nine month period
ended September 30, 1999 is derived from the unaudited interim financial
statements of the separate account. The financial statements for the nine month
period ended September 30, 1999 are included in the February 10, 2000 Statement
of Additional Information.
<TABLE>
<CAPTION>
0.95% Total Charges 1.25% Total Charges 1.40% Total Charges
--------------------- --------------------- --------------------
<S> <C> <C> <C>
AETNA BALANCED VP, INC.
Value at beginning of period $ 10.377 $ 10.323 $ 10.316
Value at end of period $ 10.600 $ 10.562 $ 10.542
Number of accumulation units outstanding at end of period 324,905 267,914 207,494
AETNA BOND VP
Value at beginning of period $ 10.319 $ 10.305 $ 10.298
Value at end of period $ 10.215 $ 10.178 $ 10.160
Number of accumulation units outstanding at end of period 542,358 634,009 234,313
AETNA GROWTH VP
Value at beginning of period $ 10.489 $ 10.475 $ 10.468
Value at end of period $ 11.399 $ 11.358 $ 11.338
Number of accumulation units outstanding at end of period 383,863 417,650 85,882
AETNA GROWTH AND INCOME VP
Value at beginning of period $ 9.886 $ 9.872 $ 9.866
Value at end of period $ 10.252 $ 10.215 $ 10.197
Number of accumulation units outstanding at end of period 979,134 1,072,390 331,130
AETNA INDEX PLUS LARGE CAP VP
Value at beginning of period $ 10.716 $ 10.702 $ 10.694
Value at end of period $ 11.292 $ 11.251 $ 11.231
Number of accumulation units outstanding at end of period 1,711,165 1,964,215 678,728
AETNA INTERNATIONAL VP
Value at beginning of period $ 9.149 $ 9.137 $ 9.131
Value at end of period $ 10.470 $ 10.432 $ 10.413
Number of accumulation units outstanding at end of period 47,360 54,933 18,743
AETNA MONEY MARKET VP
Value at beginning of period $ 10.199 $ 10.186 $ 10.179
Value at end of period $ 10.493 $ 10.455 $ 10.436
Number of accumulation units outstanding at end of period 1,723,253 1,048,453 528,162
AETNA REAL ESTATE SECURITIES VP
Value at beginning of period $ 8.903 $ 8.891 $ 8.885
Value at end of period $ 8.686 $ 8.655 $ 8.639
Number of accumulation units outstanding at end of period 42,965 30,454 5,672
AETNA SMALL COMPANY VP
Value at beginning of period $ 9.357 $ 9.345 $ 9.338
Value at end of period $ 9.760 $ 9.725 $ 9.707
Number of accumulation units outstanding at end of period 132,877 90,306 32,744
AIM V.I. CAPITAL APPRECIATION FUND
Value at beginning of period $ 10.245 $ 10.231 $ 10.224
Value at end of period $ 10.834 $ 10.795 $ 10.776
Number of accumulation units outstanding at end of period 129,569 217,488 102,811
AIM V.I. GROWTH FUND
Value at beginning of period $ 10.779 $ 10.764 $ 10.757
Value at end of period $ 11.811 $ 11.768 $ 11.747
Number of accumulation units outstanding at end of period 230,795 560,274 141,942
AIM V.I. GROWTH AND INCOME FUND
Value at beginning of period $ 10.663 $ 10.649 $ 10.641
Value at end of period $ 11.528 $ 11.486 $ 11.465
Number of accumulation units outstanding at end of period 247,509 699,721 179,082
AIM V.I. VALUE FUND
Value at beginning of period $ 10.616 $ 10.601 $ 10.594
Value at end of period $ 11.628 $ 11.586 $ 11.565
Number of accumulation units outstanding at end of period 628,651 1,091,276 322,713
FIDELITY VIP EQUITY-INCOME PORTFOLIO
Value at beginning of period $ 9.911 $ 9.897 $ 9.891
Value at end of period $ 10.125 $ 10.089 $ 10.070
Number of accumulation units outstanding at end of period 557,396 1,334,011 354,773
FIDELITY VIP GROWTH PORTFOLIO
Value at beginning of period $ 10.265(1) $ 10.231(1)
Value at end of period $ 10.265 $ 10.256
Number of accumulation units outstanding at end of period 1,926 1,347
FIDELITY VIP HIGH INCOME PORTFOLIO
Value at beginning of period $ 8.949 $ 8.936 $ 8.930
Value at end of period $ 9.244 $ 9.211 $ 9.194
Number of accumulation units outstanding at end of period 400,177 564,033 205,426
</TABLE>
<PAGE>
Condensed Financial Information
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
0.95% Total Charges 1.25% Total Charges 1.40% Total Charges
--------------------- --------------------- --------------------
<S> <C> <C> <C>
FIDELITY VIP II CONTRAFUND PORTFOLIO
Value at beginning of period $ 10.535 $ 10.521 $ 10.514
Value at end of period $ 11.076 $ 11.036 $ 11.016
Number of accumulation units outstanding at end of period 911,513 1,267,633 475,850
JANUS ASPEN AGGRESSIVE GROWTH PORTFOLIO
Value at beginning of period $ 11.042 $ 11.027 $ 11.020
Value at end of period $ 15.509 $ 15.453 $ 15.425
Number of accumulation units outstanding at end of period 631,425 637,464 243,523
JANUS ASPEN BALANCED PORTFOLIO
Value at beginning of period $ 10.945 $ 10.930 $ 10.923
Value at end of period $ 11.841 $ 11.798 $ 11.777
Number of accumulation units outstanding at end of period 1,260,294 1,615,845 572,022
JANUS ASPEN GROWTH PORTFOLIO
Value at beginning of period $ 10.938 $ 10.923 $ 10.915
Value at end of period $ 12.656 $ 12.610 $ 12.587
Number of accumulation units outstanding at end of period 1,208,271 1,686,221 461,935
JANUS ASPEN WORLDWIDE GROWTH PORTFOLIO
Value at beginning of period $ 9.576 $ 9.563 $ 9.557
Value at end of period $ 10.993 $ 10.953 $ 10.933
Number of accumulation units outstanding at end of period 1,297,387 1,489,511 426,309
MFS TOTAL RETURN SERIES
Value at beginning of period $ 10.171 $ 10.157 $ 10.150
Value at end of period $ 10.123 $ 10.086 $ 10.068
Number of accumulation units outstanding at end of period 231,064 536,006 217,885
MITCHELL HUTCHINS SERIES TRUST
GROWTH AND INCOME PORTFOLIO
Value at beginning of period $ 9.816(2) $ 10.189(2) $ 10.056(2)
Value at end of period $ 9.743 $ 9.730 $ 9.724
Number of accumulation units outstanding at end of period 10,141 45,385 1,356
MITCHELL HUTCHINS SERIES TRUST
SMALL CAP PORTFOLIO
Value at beginning of period $ 11.067(3)
Value at end of period $ 10.190
Number of accumulation units outstanding at end of period 10,760
MITCHELL HUTCHINS SERIES TRUST
TACTICAL ALLOCATION PORTFOLIO
Value at beginning of period $ 9.451(2) $ 9.852(2) $ 9.567(4)
Value at end of period $ 9.441 $ 9.428 $ 9.422
Number of accumulation units outstanding at end of period 73,280 292,311 27,804
OPPENHEIMER AGGRESSIVE GROWTH FUND/VA
Value at beginning of period $ 9.362 $ 9.350 $ 9.343
Value at end of period $ 11.703 $ 11.661 $ 11.640
Number of accumulation units outstanding at end of period 65,848 97,940 46,191
OPPENHEIMER MAIN STREET GROWTH &
INCOME FUND/VA
Value at beginning of period $ 9.080 $ 9.067 $ 9.061
Value at end of period $ 9.818 $ 9.783 $ 9.765
Number of accumulation units outstanding at end of period 243,319 544,526 176,513
OPPENHEIMER STRATEGIC BOND FUND/VA
Value at beginning of period $ 9.823 $ 9.810 $ 9.803
Value at end of period $ 9.787 $ 9.751 $ 9.734
Number of accumulation units outstanding at end of period 188,667 250,481 79,808
PPI MFS EMERGING EQUITIES PORTFOLIO
Value at beginning of period $ 10.371 $ 10.357 $ 10.350
Value at end of period $ 11.565 $ 11.523 $ 11.502
Number of accumulation units outstanding at end of period 269,649 274,545 125,570
PPI MFS RESEARCH GROWTH PORTFOLIO
Value at beginning of period $ 10.113 $ 10.099 $ 10.092
Value at end of period $ 10.213 $ 10.176 $ 10.157
Number of accumulation units outstanding at end of period 171,374 340,379 119,579
PPI MFS VALUE EQUITY PORTFOLIO
Value at beginning of period $ 10.193 $ 10.180 $ 10.173
Value at end of period $ 11.650 $ 11.607 $ 11.586
Number of accumulation units outstanding at end of period 142,384 279,582 75,344
PPI SCUDDER INTERNATIONAL GROWTH PORTFOLIO
Value at beginning of period $ 9.248 $ 9.236 $ 9.229
Value at end of period $ 11.111 $ 11.070 $ 11.050
Number of accumulation units outstanding at end of period 233,214 124,224 82,591
</TABLE>
- -------------------
(1) Funds were first received in this option during September 1999.
(2) Funds were first received in this option during May 1999.
(3) Funds were first received in this option during July 1999.
(4) Funds were first received in this option during June 1999.
X.GETIAVAMH-00 February 2000
<PAGE>
VARIABLE ANNUITY ACCOUNT B
Aetna Life Insurance and Annuity Company
Supplement Dated February 10, 2000
to May 3, 1999 Prospectus
GENERAL DESCRIPTION OF GET I
Series I of the Aetna GET Fund (GET I) 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 I. Aeltus Investment Management, Inc.
serves as investment adviser to GET I.
We will offer GET I shares only during its offering period, which is scheduled
to run from March 15, 2000 through the close of business on June 14, 2000. GET
I may not be available under your contract, your plan or in your state. Please
read the GET I prospectus for a more complete description of GET I, including
its charges and expenses.
INVESTMENT OBJECTIVE OF GET I
GET I seeks to achieve maximum total return, without compromising a minimum
targeted return, by participating in favorable equity market performance during
the guarantee period.
GET I's guarantee period runs from June 15, 2000 through June 14, 2005. During
the offering period, all GET I assets will be invested in short-term
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 I will end on June 14, 2005 which is GET I's
maturity date. The Company guarantees that the value of an accumulation unit of
the GET I subaccount under the contract on the maturity date (as valued after
the close of business on June 14, 2005) 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 I
subaccount to make up the difference. This means that if you remain invested in
GET I until the maturity date, at the maturity date you will receive no less
than the value of your separate account investment directed to GET I as of the
last day of the offering period, less any maintenance fees or any amounts you
transfer or withdraw from the GET I subaccount. The value of dividends and
distributions made by GET I throughout the guarantee period is taken into
account in determining whether, for purposes of the guarantee, the value of
your GET I investment on the maturity date is no less than its value as of the
last day of the offering period. The guarantee does not promise that you will
earn the fund's minimum targeted return referred to in the investment
objective.
If you withdraw or transfer funds from GET I 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 I. This notice will remind you that the maturity date is
approaching and that you must choose other investment options for your GET I
amounts. If you do not make a choice, on the maturity date we will transfer
your GET I amounts to another available series of the GET Fund that is
accepting deposits. If no GET Fund series is available, we will transfer your
GET I amounts to the fund or funds designated by the Company.
INCOME PHASE
GET I 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 I 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.GETI56297-00 February 2000
<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 I 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 I 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:
MAXIMUM FEES DEDUCTED FROM INVESTMENTS IN THE SEPARATE ACCOUNT
In addition to the amounts currently listed under the heading "Fee Table" in
the prospectus, we will make a daily deduction of a GET I Guarantee Charge,
equal on an annual basis to the percentage shown below, from the amounts
allocated to the GET I investment option:
GET I Guarantee Charge (deducted daily during the Guarantee Period) ...0.50%
Maximum Total Separate Account Expenses ............................... 1.90%(1)
(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 I Annual Expenses
(As a percentage of the average net assets)
<TABLE>
<CAPTION>
Investment Total Fund Annual Expenses
Advisory Fees2 Other Expenses3 (after expense reimbursement)4
---------------- ----------------- -------------------------------
<S> <C> <C> <C>
Aetna GET Fund Series I 0.60% 0.15% 0.75%
</TABLE>
For more information regarding expenses paid out of assets of the fund, see the
GET I prospectus.
- -----------------------
(2) The Investment Advisory Fee will be 0.25% during the offering period and
0.60% during the guarantee period.
(3) "Other Expenses" include an annual fund administrative fee of 0.075% of the
average daily net assets of GET I and any additional direct fund expenses.
(4) The investment adviser is contractually obligated through GET I'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 GET I's Total Fund Annual Expenses do not
exceed 0.75% of the fund's average daily net assets. It is not expected that
GET I's actual expenses without this waiver or reimbursement will exceed
this amount.
<PAGE>
The following information supplements the "Hypothetical Examples" contained in
the prospectus.
HYPOTHETICAL EXAMPLES--AETNA GET FUND SERIES I
Account Fees You May Incur Over Time. The following hypothetical examples show
the fees and expenses paid over time if you invest $1,000 in the GET I
investment option under the contract (until GET I's maturity date) and assume a
5% annual return on the investment.5
<TABLE>
<CAPTION>
- --------------------------------
> THESE EXAMPLES ARE PURELY Example A Example B
HYPOTHETICAL.
> THEY SHOULD NOT BE If you withdraw your entire If at the end of the periods
CONSIDERED A REPRESENTATION account value at the end of shown you (1) leave your
OF PAST OR FUTURE EXPENSES the periods shown, you would entire account value invested
OR EXPECTED RETURNS. pay the following expenses, or (2) select an income phase
> ACTUAL EXPENSES AND/OR including any applicable early payment option, you would
RETURNS MAY BE MORE OR LESS withdrawal charge: pay the following expenses
THAN THOSE SHOWN BELOW. (no early withdrawal charge is
- --------------------------------- reflected):
1 Year 3 Years 5 Years 1 Year 3 Years 5 Years
-------- --------- --------- -------- --------- --------
<S> <C> <C> <C> <C> <C> <C>
Aetna GET Fund Series I $90 $137 $177 $27 $83 $142
</TABLE>
- -----------------------
(5) 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 I 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 I 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.)
<PAGE>
The following information supplements "Appendix III--Description of Underlying
Funds" contained in the prospectus:
Aetna GET Fund (Series I)
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 June 15, 2000 through June 14,
2005, the maturity date.
POLICIES
Prior to June 15, 2000, assets are invested entirely in short-term 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-duration U.S. Government
securities and may also consist of mortgage backed securities and corporate
obligations. 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.
RISKS
The principal risks of investing in Series I are those generally attributable
to stock and bond investing. The success of Series I'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 I
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 I 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 I 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 I assets may
become largely invested in the fixed component in order to increase the
likelihood of achieving the Targeted Return at the maturity date. Use of the
fixed component reduces Series I'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.
The following information supplements Appendix IV--"Condensed Financial
Information" contained in the prospectus:
<PAGE>
Appendix IV--"Condensed Financial Information", is amended to include financial
data for the nine-month period ending September 30, 1999, as follows.
Condensed Financial Information
- --------------------------------------------------------------------------------
(Selected data for accumulation units outstanding throughout each period)
================================================================================
The condensed financial information presented below for the nine month period
ended September 30, 1999 is derived from the unaudited interim financial
statements of the separate account. The financial statements for the nine month
period ended September 30, 1999 are included in the February 10, 2000 Statement
of Additional Information.
<TABLE>
<CAPTION>
0.95% Total Charges 1.25% Total Charges 1.40% Total Charges
--------------------- --------------------- --------------------
<S> <C> <C> <C>
AETNA BALANCED VP, INC.
Value at beginning of period $ 10.377 $ 10.323 $ 10.316
Value at end of period $ 10.600 $ 10.562 $ 10.542
Number of accumulation units outstanding at end of period 324,905 267,914 207,494
AETNA BOND VP
Value at beginning of period $ 10.319 $ 10.305 $ 10.298
Value at end of period $ 10.215 $ 10.178 $ 10.160
Number of accumulation units outstanding at end of period 542,358 634,009 234,313
AETNA GROWTH VP
Value at beginning of period $ 10.489 $ 10.475 $ 10.468
Value at end of period $ 11.399 $ 11.358 $ 11.338
Number of accumulation units outstanding at end of period 383,863 417,650 85,882
AETNA GROWTH AND INCOME VP
Value at beginning of period $ 9.886 $ 9.872 $ 9.866
Value at end of period $ 10.252 $ 10.215 $ 10.197
Number of accumulation units outstanding at end of period 979,134 1,072,390 331,130
AETNA INDEX PLUS LARGE CAP VP
Value at beginning of period $ 10.716 $ 10.702 $ 10.694
Value at end of period $ 11.292 $ 11.251 $ 11.231
Number of accumulation units outstanding at end of period 1,711,165 1,964,215 678,728
AETNA INTERNATIONAL VP
Value at beginning of period $ 9.149 $ 9.137 $ 9.131
Value at end of period $ 10.470 $ 10.432 $ 10.413
Number of accumulation units outstanding at end of period 47,360 54,933 18,743
AETNA MONEY MARKET VP
Value at beginning of period $ 10.199 $ 10.186 $ 10.179
Value at end of period $ 10.493 $ 10.455 $ 10.436
Number of accumulation units outstanding at end of period 1,723,253 1,048,453 528,162
AETNA REAL ESTATE SECURITIES VP
Value at beginning of period $ 8.903 $ 8.891 $ 8.885
Value at end of period $ 8.686 $ 8.655 $ 8.639
Number of accumulation units outstanding at end of period 42,965 30,454 5,672
AETNA SMALL COMPANY VP
Value at beginning of period $ 9.357 $ 9.345 $ 9.338
Value at end of period $ 9.760 $ 9.725 $ 9.707
Number of accumulation units outstanding at end of period 132,877 90,306 32,744
AIM V.I. CAPITAL APPRECIATION FUND
Value at beginning of period $ 10.245 $ 10.231 $ 10.224
Value at end of period $ 10.834 $ 10.795 $ 10.776
Number of accumulation units outstanding at end of period 129,569 217,488 102,811
AIM V.I. GROWTH FUND
Value at beginning of period $ 10.779 $ 10.764 $ 10.757
Value at end of period $ 11.811 $ 11.768 $ 11.747
Number of accumulation units outstanding at end of period 230,795 560,274 141,942
AIM V.I. GROWTH AND INCOME FUND
Value at beginning of period $ 10.663 $ 10.649 $ 10.641
Value at end of period $ 11.528 $ 11.486 $ 11.465
Number of accumulation units outstanding at end of period 247,509 699,721 179,082
AIM V.I. VALUE FUND
Value at beginning of period $ 10.616 $ 10.601 $ 10.594
Value at end of period $ 11.628 $ 11.586 $ 11.565
Number of accumulation units outstanding at end of period 628,651 1,091,276 322,713
FIDELITY VIP EQUITY-INCOME PORTFOLIO
Value at beginning of period $ 9.911 $ 9.897 $ 9.891
Value at end of period $ 10.125 $ 10.089 $ 10.070
Number of accumulation units outstanding at end of period 557,396 1,334,011 354,773
FIDELITY VIP GROWTH PORTFOLIO
Value at beginning of period $ 10.265(1) $ 10.231(1)
Value at end of period $ 10.265 $ 10.256
Number of accumulation units outstanding at end of period 1,926 1,347
FIDELITY VIP HIGH INCOME PORTFOLIO
Value at beginning of period $ 8.949 $ 8.936 $ 8.930
Value at end of period $ 9.244 $ 9.211 $ 9.194
Number of accumulation units outstanding at end of period 400,177 564,033 205,426
</TABLE>
<PAGE>
Condensed Financial Information
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
0.95% Total Charges 1.25% Total Charges 1.40% Total Charges
--------------------- --------------------- --------------------
<S> <C> <C> <C>
FIDELITY VIP II CONTRAFUND PORTFOLIO
Value at beginning of period $ 10.535 $ 10.521 $ 10.514
Value at end of period $ 11.076 $ 11.036 $ 11.016
Number of accumulation units outstanding at end of period 911,513 1,267,633 475,850
JANUS ASPEN AGGRESSIVE GROWTH PORTFOLIO
Value at beginning of period $ 11.042 $ 11.027 $ 11.020
Value at end of period $ 15.509 $ 15.453 $ 15.425
Number of accumulation units outstanding at end of period 631,425 637,464 243,523
JANUS ASPEN BALANCED PORTFOLIO
Value at beginning of period $ 10.945 $ 10.930 $ 10.923
Value at end of period $ 11.841 $ 11.798 $ 11.777
Number of accumulation units outstanding at end of period 1,260,294 1,615,845 572,022
JANUS ASPEN GROWTH PORTFOLIO
Value at beginning of period $ 10.938 $ 10.923 $ 10.915
Value at end of period $ 12.656 $ 12.610 $ 12.587
Number of accumulation units outstanding at end of period 1,208,271 1,686,221 461,935
JANUS ASPEN WORLDWIDE GROWTH PORTFOLIO
Value at beginning of period $ 9.576 $ 9.563 $ 9.557
Value at end of period $ 10.993 $ 10.953 $ 10.933
Number of accumulation units outstanding at end of period 1,297,387 1,489,511 426,309
MFS TOTAL RETURN SERIES
Value at beginning of period $ 10.171 $ 10.157 $ 10.150
Value at end of period $ 10.123 $ 10.086 $ 10.068
Number of accumulation units outstanding at end of period 231,064 536,006 217,885
OPPENHEIMER AGGRESSIVE GROWTH FUND/VA
Value at beginning of period $ 9.362 $ 9.350 $ 9.343
Value at end of period $ 11.703 $ 11.661 $ 11.640
Number of accumulation units outstanding at end of period 65,848 97,940 46,191
OPPENHEIMER MAIN STREET GROWTH &
INCOME FUND/VA
Value at beginning of period $ 9.080 $ 9.067 $ 9.061
Value at end of period $ 9.818 $ 9.783 $ 9.765
Number of accumulation units outstanding at end of period 243,319 544,526 176,513
OPPENHEIMER STRATEGIC BOND FUND/VA
Value at beginning of period $ 9.823 $ 9.810 $ 9.803
Value at end of period $ 9.787 $ 9.751 $ 9.734
Number of accumulation units outstanding at end of period 188,667 250,481 79,808
PPI MFS EMERGING EQUITIES PORTFOLIO
Value at beginning of period $ 10.371 $ 10.357 $ 10.350
Value at end of period $ 11.565 $ 11.523 $ 11.502
Number of accumulation units outstanding at end of period 269,649 274,545 125,570
PPI MFS RESEARCH GROWTH PORTFOLIO
Value at beginning of period $ 10.113 $ 10.099 $ 10.092
Value at end of period $ 10.213 $ 10.176 $ 10.157
Number of accumulation units outstanding at end of period 171,374 340,379 119,579
PPI MFS VALUE EQUITY PORTFOLIO
Value at beginning of period $ 10.193 $ 10.180 $ 10.173
Value at end of period $ 11.650 $ 11.607 $ 11.586
Number of accumulation units outstanding at end of period 142,384 279,582 75,344
PPI SCUDDER INTERNATIONAL GROWTH PORTFOLIO
Value at beginning of period $ 9.248 $ 9.236 $ 9.229
Value at end of period $ 11.111 $ 11.070 $ 11.050
Number of accumulation units outstanding at end of period 233,214 124,224 82,591
</TABLE>
- -------------------
(1) Funds were first received in this option during September 1999.
(2) Funds were first received in this option during May 1999.
(3) Funds were first received in this option during July 1999.
(4) Funds were first received in this option during June 1999.
X.GETI56297-00 February 2000
