<PAGE>
VARIABLE ANNUITY ACCOUNT B
AETNA LIFE INSURANCE AND ANNUITY COMPANY
SUPPLEMENT DATED DECEMBER 14, 2000 TO PROSPECTUS DATED MAY 1, 2000,
AS AMENDED BY SUPPLEMENTS DATED AUGUST 21, 2000 AND DECEMBER 14, 2000
The information in this supplement updates and amends certain information
contained in the prospectus dated May 1, 2000. You should read this supplement
along with the prospectus.
- The following information updates and replaces the "Systematic Distribution
Option Availability" paragraph on page 28 of the prospectus:
SYSTEMATIC DISTRIBUTION OPTION AVAILABILITY. Withdrawals under a systematic
distribution option are limited to your free withdrawal amount. See
"Fees--Early Withdrawal Charge--Free Withdrawals." If allowed by applicable
law, we may discontinue the availability of one or more of the systematic
distribution options for new elections at any time and/or to change the
terms of future elections.
- The following information updates and replaces the "Death Benefit" Section in
Appendix I--ALIAC Guaranteed Account:
DEATH BENEFIT. When a death benefit is paid under the contract within six
months of the date of death, only a positive aggregate MVA amount, if any,
is applied to the account value attributable to amounts withdrawn from the
Guaranteed Account. This provision does not apply upon the death of a
spousal beneficiary or joint contract holder who continued the account after
the first death. If a death benefit is paid more than six months from the
date of death, a positive or negative aggregate MVA amount, as applicable,
will be applied, except under certain contracts issued in the State of New
York.
X.34370-00 December 2000
<PAGE>
VARIABLE ANNUITY ACCOUNT B
AETNA LIFE INSURANCE AND ANNUITY COMPANY
SUPPLEMENT DATED DECEMBER 14, 2000 TO MAY 1, 2000 PROSPECTUS
GENERAL DESCRIPTION OF GET L
Series L of the Aetna GET Fund (GET L) 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 L. Aeltus Investment Management, Inc.
serves as investment adviser to GET L.
We will offer GET L shares only during its offering period, which is scheduled
to run from December 14, 2000 through the close of business on March 14, 2001.
GET L may not be available under your contract, your plan or in your state.
Please read the GET L prospectus for a more complete description of GET L,
including its charges and expenses.
INVESTMENT OBJECTIVE OF GET L
GET L seeks to achieve maximum total return, without compromising a minimum
targeted return, by participating in favorable equity market performance during
the guarantee period.
GET L's guarantee period runs from March 15, 2001 through March 14, 2006. During
the offering period, all GET L 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 L will end on March 14, 2006 which is GET L's
maturity date. The Company guarantees that the value of an accumulation unit of
the GET L subaccount under the contract on the maturity date (as valued after
the close of business on March 14, 2006) 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 L
subaccount to make up the difference. This means that if you remain invested in
GET L until the maturity date, at the maturity date you will receive no less
than the value of your separate account investment directed to GET L as of the
last day of the offering period, less any maintenance fees or any amounts you
transfer or withdraw from the GET L subaccount. The value of dividends and
distributions made by GET L throughout the guarantee period is taken into
account in determining whether, for purposes of the guarantee, the value of your
GET L 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 L 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 L. This notice will remind you that the maturity date is
approaching and that you must choose other investment options for your GET L
amounts. If you do not make a choice, on the maturity date we will transfer your
GET L 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 L
amounts to the fund or funds designated by the Company.
X.GETL34370-00 December 2000
<PAGE>
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 L Guarantee Charge, equal on
an annual basis to the percentage shown below, from the amounts allocated to the
GET L investment option:
<TABLE>
<S> <C>
GET L GUARANTEE CHARGE (deducted daily during the Guarantee
Period)................................................... 0.50%
MAXIMUM TOTAL SEPARATE ACCOUNT EXPENSES..................... 1.90%(1)
</TABLE>
The following information supplements the "Fund Expense Table" contained in the
prospectus:
AETNA GET FUND SERIES L ANNUAL EXPENSES
(As a percentage of the average net assets.)
<TABLE>
<CAPTION>
INVESTMENT TOTAL FUND ANNUAL EXPENSES
ADVISORY FEES(2) OTHER EXPENSES(3) (AFTER EXPENSE REIMBURSEMENT)(4)
---------------- ----------------- --------------------------------
<S> <C> <C> <C>
Aetna GET Fund Series L 0.60% 0.15% 0.75%
</TABLE>
For more information regarding expenses paid out of assets of the fund, see the
GET L prospectus.
--------------------------------
<TABLE>
<C> <S>
(1) The total separate account expenses that apply to your
contract may be lower. Please refer to the "Fee Table"
section of your 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 L and any
additional direct fund expenses.
(4) The investment adviser is contractually obligated through
GET L'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 L's Total Fund Annual Expenses do not
exceed 0.75% of the fund's average daily net assets. It is
not expected that GET L's actual expenses without this
waiver or reimbursement will exceed this amount.
</TABLE>
<PAGE>
The following information supplements the "Hypothetical Examples" contained in
the prospectus:
HYPOTHETICAL EXAMPLES--AETNA GET FUND SERIES L
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 L
investment option under the contract (until GET L's maturity date) and assume a
5% annual return on the investment.(5)
<TABLE>
<S> <C> <C> <C>
- THESE EXAMPLES ARE PURELY HYPOTHETICAL.
- THEY SHOULD NOT BE CONSIDERED A
REPRESENTATION OF PAST OR FUTURE EXPENSES OR
EXPECTED RETURNS.
- ACTUAL EXPENSES AND/OR RETURNS MAY BE MORE OR
LESS THAN THOSE SHOWN BELOW.
</TABLE>
<TABLE>
<CAPTION>
EXAMPLE A EXAMPLE B
<S> <C> <C> <C>
If you withdraw your entire If at the end of the periods
account value at the end of the shown you (1) leave your entire
periods shown, you would pay account value invested or
the following expenses, (2) select an income phase
including any applicable early payment option, you would pay
withdrawal charge: the following expenses (no
early withdrawal charge is
reflected):
</TABLE>
<TABLE>
<CAPTION>
1 YEAR 3 YEARS 5 YEARS 1 YEAR 3 YEARS 5 YEARS
--------- --------- --------- --------- --------- ---------
<S> <C> <C> <C> <C> <C> <C>
Aetna GET Fund Series L $90 $137 $177 $27 $83 $142
</TABLE>
--------------------------------
<TABLE>
<C> <S>
(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 L
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 L 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.)
</TABLE>
<PAGE>
The following information supplements "Appendix III--Description of Underlying
Funds" contained in the prospectus:
AETNA GET FUND (SERIES L)
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 March 15, 2001 through March 14, 2006, the
maturity date.
POLICIES
Prior to March 15, 2001, 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 L are those generally attributable to
stock and bond investing. The success of Series L'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 L
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 L 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 L 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 L 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 L'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.GETL34370-00 December 2000
<PAGE>
VARIABLE ANNUITY ACCOUNT B
AETNA LIFE INSURANCE AND ANNUITY COMPANY
SUPPLEMENT DATED MARCH 1, 2001 TO MAY 1, 2000 PROSPECTUS
GENERAL DESCRIPTION OF GET M
Series M of the Aetna GET Fund (GET M) 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 M. Aeltus Investment Management, Inc.
serves as investment adviser to GET M.
We will offer GET M shares only during its offering period, which is scheduled
to run from March 15, 2001 through the close of business on June 13, 2001. GET M
may not be available under your contract, your plan or in your state. Please
read the GET M prospectus for a more complete description of GET M, including
its charges and expenses.
INVESTMENT OBJECTIVE OF GET M
GET M seeks to achieve maximum total return, without compromising a minimum
targeted return, by participating in favorable equity market performance during
the guarantee period.
GET M's guarantee period runs from June 14, 2001 through June 13, 2006. During
the offering period, all GET M 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 M will end on June 13, 2006 which is GET M's
maturity date. The Company guarantees that the value of an accumulation unit of
the GET M subaccount under the contract on the maturity date (as valued after
the close of business on June 13, 2006) 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 M
subaccount to make up the difference. This means that if you remain invested in
GET M until the maturity date, at the maturity date you will receive no less
than the value of your separate account investment directed to GET M as of the
last day of the offering period, less any maintenance fees or any amounts you
transfer or withdraw from the GET M subaccount. The value of dividends and
distributions made by GET M throughout the guarantee period is taken into
account in determining whether, for purposes of the guarantee, the value of your
GET M 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 M 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 M. This notice will remind you that the maturity date is
approaching and that you must choose other investment options for your GET M
amounts. If you do not make a choice, on the maturity date we will transfer your
GET M 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 M
amounts to the fund or funds designated by the Company.
X.GETM34370-00 March 2001
<PAGE>
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 M Guarantee Charge, equal on
an annual basis to the percentage shown below, from the amounts allocated to the
GET M investment option:
<TABLE>
<S> <C>
GET M GUARANTEE CHARGE (deducted daily during the Guarantee
Period)................................................... 0.50%
MAXIMUM TOTAL SEPARATE ACCOUNT EXPENSES..................... 1.90%(1)
</TABLE>
The following information supplements the "Fund Expense Table" contained in the
prospectus:
AETNA GET FUND SERIES M ANNUAL EXPENSES
(As a percentage of the average net assets.)
<TABLE>
<CAPTION>
INVESTMENT TOTAL FUND ANNUAL EXPENSES
ADVISORY FEES(2) OTHER EXPENSES(3) (AFTER EXPENSE REIMBURSEMENT)(4)
---------------- ----------------- --------------------------------
<S> <C> <C> <C>
Aetna GET Fund Series M 0.60% 0.15% 0.75%
</TABLE>
For more information regarding expenses paid out of assets of the fund, see the
GET M prospectus.
--------------------------------
<TABLE>
<C> <S>
(1) The total separate account expenses that apply to your
contract may be lower. Please refer to the "Fee Table"
section of your 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 M and any
additional direct fund expenses.
(4) The investment adviser is contractually obligated through
GET M'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 M's Total Fund Annual Expenses do not
exceed 0.75% of the fund's average daily net assets. It is
not expected that GET M's actual expenses without this
waiver or reimbursement will exceed this amount.
</TABLE>
<PAGE>
The following information supplements the "Hypothetical Examples" contained in
the prospectus:
HYPOTHETICAL EXAMPLES--AETNA GET FUND SERIES M
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 M
investment option under the contract (until GET M's maturity date) and assume a
5% annual return on the investment.(5)
<TABLE>
<S> <C> <C> <C>
- THESE EXAMPLES ARE PURELY HYPOTHETICAL.
- THEY SHOULD NOT BE CONSIDERED A
REPRESENTATION OF PAST OR FUTURE EXPENSES OR
EXPECTED RETURNS.
- ACTUAL EXPENSES AND/OR RETURNS MAY BE MORE OR
LESS THAN THOSE SHOWN BELOW.
</TABLE>
<TABLE>
<CAPTION>
EXAMPLE A EXAMPLE B
<S> <C> <C> <C>
If you withdraw your entire If at the end of the periods
account value at the end of the shown you (1) leave your entire
periods shown, you would pay account value invested or
the following expenses, (2) select an income phase
including any applicable early payment option, you would pay
withdrawal charge: the following expenses (no
early withdrawal charge is
reflected):
</TABLE>
<TABLE>
<CAPTION>
1 YEAR 3 YEARS 5 YEARS 1 YEAR 3 YEARS 5 YEARS
--------- --------- --------- --------- --------- ---------
<S> <C> <C> <C> <C> <C> <C>
Aetna GET Fund Series M $90 $137 $177 $27 $83 $142
</TABLE>
--------------------------------
<TABLE>
<C> <S>
(5) The examples shown above reflect an annual mortality and
expense risk charge of 1.25%, an annual contract administra-
tive expense charge of 0.15%, an annual GET M 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 M 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.)
</TABLE>
<PAGE>
The following information supplements "Appendix III--Description of Underlying
Funds" contained in the prospectus:
AETNA GET FUND (SERIES M)
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 14, 2001 through June 13, 2006, the
maturity date.
POLICIES
Prior to June 14, 2001, 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 M are those generally attributable to
stock and bond investing. The success of Series M'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 M
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 M 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 M 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 M 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 M'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.GETM34370-00 March 2001
