<PAGE>
VARIABLE ANNUITY ACCOUNT C
STATE UNIVERSITY OF NEW YORK (SUNY)
DEFINED CONTRIBUTION PLAN
Supplement dated September 1, 1995
to Prospectus dated May 1, 1995
The information in this supplement updates and amends the information contained
in the Prospectus dated May 1, 1995 and should be read with that Prospectus.
Effective September 1, 1995, the following new funds will be added as investment
options under the variable annuity contracts described in the Prospectus:
Alger American Growth Portfolio Fidelity Index 500 Portfolio
Fidelity Asset Manager Portfolio Janus Aspen Growth Portfolio
Fidelity Contrafund Portfolio Janus Aspen Short-Term Bond Portfolio
Fidelity Equity-Income Portfolio Janus Aspen Worldwide Growth Portfolio
The descriptions of the above funds are as follows:
. Alger American Fund - Alger American Growth Portfolio ("Alger American
Growth Portfolio") seeks long-term capital appreciation by investing in a
diversified, actively managed portfolio of equity securities, primarily of
companies with total market capitalization - present market value per share
multiplied by the total number of shares outstanding - of $1 billion or
greater. Income is a consideration in the selection of investments but is
not an investment objective.
. Fidelity Investments Variable Insurance Products Fund II - Asset Manager
Portfolio ("Fidelity Asset Manager Portfolio") seeks high total return with
reduced risk over the long-term by allocating its assets among stocks,
bonds and short-term fixed-income instruments.
. Fidelity Investments Variable Insurance Products Fund II - Contrafund
Portfolio ("Fidelity Contrafund Portfolio") seeks maximum total return over
the long term by investing its assets mainly in equity securities of
companies that are undervalued or out-of-favor.
. Fidelity Investments Variable Insurance Products Fund - Equity-Income
Portfolio ("Fidelity Equity-Income Portfolio") seeks reasonable income by
investing primarily in income-producing equity securities. In choosing
these securities, the Fund will also consider the potential for capital
appreciation.
. Fidelity Investments Variable Insurance Products Fund II - Index 500
Portfolio ("Fidelity Index 500 Portfolio") seeks to provide investment
results that correspond to the total return of common stocks publicly
traded in the United States by duplicating the composition and total return
of the Standard & Poor's 500 Composite Stock Price Index.
. Janus Aspen Series - Growth Portfolio ("Janus Aspen Growth Portfolio")
seeks long-term growth of capital by investing primarily in a diversified
portfolio of common stocks of a large number of issuers of any size. The
Portfolio generally emphasizes issuers with large market capitalizations.
. Janus Aspen Series - Short-Term Bond Portfolio ("Janus Aspen Short-Term
Bond Portfolio") seeks as high a level of current income as is consistent
with preservation of capital by investing primarily in short- and
intermediate-term fixed income securities. The Portfolio will normally
maintain a dollar-weighted average portfolio maturity of less than three
years, but not exceed five years depending upon its portfolio manager's
opinion of prevailing market, financial and economic conditions.
. Janus Aspen Series - Worldwide Growth Portfolio ("Janus Aspen Worldwide
Growth Portfolio") seeks long-term growth of capital by investing primarily
in common stocks of companies of foreign and domestic issuers of any size.
The portfolio normally invests in issuers from at least five different
countries including the United States. International investments involve
risks not present in U.S. securities.
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FEE TABLE
The following information relates to the Mutual Fund Annual Expenses and
Hypothetical Illustration for the new investment options. Please also refer to
the table of Separate Account Annual Expenses in the fee table in the May 1,
1995 prospectus which also applies to each new investment option. Except as
noted, the following figures are a percentage of average net assets and, except
where otherwise indicated, are based on figures for the year ended December 31,
1994.
<TABLE>
<CAPTION>
Investment Other Total
Advisory Fees/(1)/ Expenses/(2)/ Mutual Fund
(after expense (after expense Annual
reimbursement) reimbursement) Expenses
-------------- -------------- --------
<S> <C> <C> <C>
Alger American Growth Portfolio 0.75% 0.11% 0.86%
Fidelity Asset Manager Portfolio/(3)/ 0.72% 0.08% 0.80%
Fidelity Contrafund Portfolio/(4)/ 0.62% 0.27% 0.89%
Fidelity Equity-Income Portfolio/(3)/ 0.52% 0.06% 0.58%
Fidelity Index 500 Portfolio/(5)/ 0.00% 0.28% 0.28%
Janus Aspen Growth Portfolio/(6)/ 0.66% 0.22% 0.88%
Janus Aspen Short-Term Bond Portfolio/(6)/ 0.00% 0.65% 0.65%
Janus Aspen Worldwide Growth Portfolio/(6)/ 0.69% 0.49% 1.18%
</TABLE>
/(1)/ Certain of the unaffiliated Fund advisers reimburse us for administrative
costs incurred in connection with administering the Funds as variable
funding options under the Contract. These reimbursements are paid out of
investment advisory fees and are not charged to investors.
/(2)/ A Fund's "Other Expenses" include operating costs of the Fund. The
deductions of the above expenses are reflected in the Fund's net asset
value and are not deducted from the Account Value under the Contract.
/(3)/ A portion of the brokerage commissions the fund paid was used to reduce
its expenses. Without this reduction total operating expenses would have
been (0.60% for the Equity-Income Portfolio and 0.81% for the Asset
Manager Portfolio)
/(4)/ This Fund has only limited operating history, and therefore the expenses
are estimated for the current fiscal year.
/(5)/ The fund's expenses were voluntarily reduced by the fund's investment
adviser. Absent reimbursement, management fee, expenses and total
expenses would have been 0.28%, 0.53% and 0.81%, respectively.
/(6)/ The expense figures shown are net of certain expense waivers from Janus
Capital Corporation. Without such waivers, the Investment Advisory Fees,
Other Expenses and Total Mutual Fund Annual Expenses for the Portfolios
for the fiscal year ended December 31, 1994 were: 1.00%, 0.22%, and
1.22%, respectively, for Janus Aspen Growth Portfolio; 0.65%, 0.75% and
1.40%, respectively, for Janus Aspen Short-Term Bond Portfolio; and
1.00%, 0.49% and 1.49%, respectively, for Janus Aspen Worldwide Growth
Portfolio.
Hypothetical Illustration (Example)
-----------------------------------
THIS EXAMPLE IS PURELY HYPOTHETICAL. IT SHOULD NOT BE CONSIDERED A
REPRESENTATION OF PAST OR FUTURE EXPENSES OR EXPECTED RETURN. ACTUAL EXPENSES
AND/OR RETURN MAY BE MORE OR LESS THAN THOSE SHOWN BELOW.
Assuming a 5% annual return on assets, you would have paid the following
expenses on a $1,000 investment whether or not you withdraw or if you annuitize
your Individual Account Value at the end of the applicable time period:
<TABLE>
<CAPTION>
1 year 3 years 5 years 10 years
------ ------- ------- --------
<S> <C> <C> <C> <C>
Alger American Growth Portfolio $21 $66 $113 $244
Fidelity Asset Manager Portfolio $21 $64 $110 $238
Fidelity Contrafund Portfolio $22 $67 $115 $247
Fidelity Equity-Income Portfolio $19 $58 $ 99 $215
Fidelity Index 500 Portfolio $16 $48 $ 83 $182
Janus Aspen Growth Portfolio $21 $63 $105 $210
Janus Aspen Short-Term Bond Portfolio $19 $56 $ 94 $187
Janus Aspen Worldwide Growth Portfolio $24 $72 $120 $240
</TABLE>
<PAGE>
CONDENSED FINANCIAL INFORMATION
(Selected data for accumulation units outstanding throughout each period)
The condensed financial information presented below for each of the years in the
one-year period ended December 31, 1994 (as applicable), is derived from the
financial statements of the Account, which financial statements have been
audited by KPMG Peat Marwick LLP, independent auditors. The financial statements
as of and for the year ended December 31, 1994 and the independent auditors'
report thereon, are included in the Statement of Additional Information.
<TABLE>
<CAPTION>
1994
-------------
<S> <C>
FIDELITY ASSET MANAGER PORTFOLIO
Value at beginning of period $10.000/(1)/
Value at end of period $ 9.447
Increase (decrease) in value of
accumulation unit/(2)/ (5.53)%
Number of accumulation units
outstanding at end of period 1,254,504
JANUS ASPEN AGGRESSIVE GROWTH PORTFOLIO
Value at beginning of period $10.000/(3)/
Value at end of period $12.169
Increase (decrease) in value of
accumulation unit/(2)/ 21.69%
Number of accumulation units
outstanding at end of period 393,553
</TABLE>
/(1)/ The initial Accumulation Unit value was established at $10.000 during
March 1994, when funds were first received under this option.
/(2)/ The above figures are calculated by subtracting the beginning Accumulation
Unit value from the ending Accumulation Unit value during a calendar year,
and dividing the result by the beginning Accumulation Unit value. These
figures do not reflect the deferred sales charge or the fixed dollar
annual maintenance fee, if any. Inclusion of these charges would reduce
the investment results shown.
/(3)/ The initial accumulation Unit value was established at $10.000 during June
1994, when funds were first received in this option.
(Not all investment options referenced in this supplement have unit value
information since they were not available under contracts of this type as of
December 31, 1994.)
Fund Investment Advisers
The following identifies the investment adviser for each Fund.
Fund Investment Adviser
---- ------------------
Alger American Growth Portfolio Fred Alger Management, Inc.
Fidelity Asset Manager Portfolio Fidelity Management & Research Company
Fidelity Contrafund Portfolio Fidelity Management & Research Company
Fidelity Equity-Income Portfolio Fidelity Management & Research Company
Fidelity Index 500 Portfolio Fidelity Management & Research Company
Janus Aspen Growth Portfolio Janus Capital Corporation
Janus Aspen Short-Term Bond Portfolio Janus Capital Corporation
Janus Aspen Worldwide Growth Portfolio Janus Capital Corporation
<PAGE>
ALGER AMERICAN GROWTH PORTFOLIO
Hypothetical Periodic Accumulation Values and Annuity Payments
TABLE 1 -- ACCUMULATION PERIOD
Hypothetical Accumulation Values at Annual Intervals
Following Contract Issuance on December 31, 1989
(Assuming $100 Monthly Purchase Payments made during each Contract Year)
Cumulative
Value at End Purchase Accumulation
of Month Payments Value(1)
December 1990 $ 1,200.00 $ 1,267.30
December 1991 2,400.00 3,172.84
December 1992 3,600.00 4,877.71
December 1993 4,800.00 7,274.64
December 1994 6,000.00 8,517.26
TABLE 2 -- ACCUMULATION PERIOD
Hypothetical Accumulation Values at Quarterly Intervals
Following Contract Issuance on December 31, 1989
(Assumes Single $100 Net Purchase Payment made at Contract Issuance)
Value at End Accumulation Value at End Accumulation Value at End Accumulation
of Month Value(1) of Month Value(1) of Month Value(1)
March 1990 $94.31 Dec. 1991 $142.59 Sept. 1993 $181.33
June 109.69 March 1992 138.75 Dec. 191.39
Sept. 91.62 June 130.58 March 1994 182.84
Dec. 102.84 Sept. 138.99 June 172.52
March 1991 122.22 Dec. 158.25 Sept. 186.62
June 116.94 March 1993 161.04 Dec. 191.75
Sept. 131.83 June 165.51
(1) The Accumulation Value is net of all applicable fees and expenses of the
Fund and under the Contract; this is the amount available at withdrawal. Please
refer to the narrative preceding the hypothetical tables in the May 1, 1995
prospectus.
<PAGE>
FIDELITY ASSET MANAGER PORTFOLIO
Hypothetical Periodic Accumulation Values
TABLE 1 -- ACCUMULATION PERIOD
Hypothetical Accumulation Values at Annual Intervals
Following Contract Issuance on December 31, 1989
(Assuming $100 Monthly Purchase Payments made during each Contract Year)
Cumulative
Value at End Purchase Accumulation
of Month Payments Value(1)
December 1990 $ 1,200.00 $ 1,264.91
December 1991 2,400.00 2,829.12
December 1992 3,600.00 4,387.80
December 1993 4,800.00 6,586.48
December 1994 6,000.00 7,260.90
TABLE 2 -- ACCUMULATION PERIOD
Hypothetical Accumulation Values at Quarterly Intervals
Following Contract Issuance on December 31, 1989
(Assumes Single $100 Net Purchase Payment made at Contract Issuance)
Value at End Accumulation Value at End Accumulation Value at End Accumulation
of Month Value(1) of Month Value(1) of Month Value(1)
March 1990 $99.29 Dec. 1991 $127.55 Sept. 1993 $158.40
June 103.47 March 1992 130.95 Dec. 168.51
Sept. 97.48 June 133.74 March 1994 159.96
Dec. 105.39 Sept. 135.97 June 157.88
March 1991 116.25 Dec. 140.74 Sept. 161.94
June 118.13 March 1993 148.25 Dec. 156.33
Sept. 123.88 June 152.41
(1) The Accumulation Value is net of all applicable fees and expenses of the
Fund and under the Contract; this is the amount available at withdrawal. Please
refer to the narrative preceding the hypothetical tables in the May 1, 1995
prospectus.
<PAGE>
FIDELITY EQUITY-INCOME PORTFOLIO
Hypothetical Periodic Accumulation Values
TABLE 1 -- ACCUMULATION PERIOD
Hypothetical Accumulation Values at Annual Intervals
Following Contract Issuance on December 31, 1986
(Assuming $100 Monthly Purchase Payments made during each Contract Year)
Cumulative
Value at End Purchase Accumulation
of Month Payments Value(1)
December 1987 $ 1,200.00 $ 1,055.58
December 1988 2,400.00 2,554.37
December 1989 3,600.00 4,195.47
December 1990 4,800.00 4,636.08
December 1991 6,000.00 7,356.77
December 1992 7,200.00 9,800.80
December 1993 8,400.00 12,729.19
December 1994 9,600.00 14,678.92
TABLE 2 -- ACCUMULATION PERIOD
Hypothetical Accumulation Values at Quarterly Intervals
Following Contract Issuance on December 31, 1986
(Assumes Single $100 Net Purchase Payment made at Contract Issuance)
Value at End Accumulation Value at End Accumulation Value at End Accumulation
of Month Value(1) of Month Value(1) of Month Value(1)
March 1987 $116.61 Dec. 1989 $137.12 Sept. 1992 $160.03
June 116.43 March 1990 128.44 Dec. 171.89
Sept. 121.20 June 130.46 March 1993 185.82
Dec. 97.64 Sept. 107.69 June 190.02
March 1988 107.52 Dec. 114.72 Sept. 198.58
June 116.71 March 1991 131.47 Dec. 200.82
Sept. 117.52 June 133.22 March 1994 195.11
Dec. 118.33 Sept. 142.30 June 201.87
March 1989 127.30 Dec. 148.91 Sept. 215.06
June 135.82 March 1992 153.43 Dec. 212.19
Sept. 143.95 June 157.62
(1) The Accumulation Value is net of all applicable fees and expenses of the
Fund and under the Contract; this is the amount available at withdrawal. Please
refer to the narrative preceding the hypothetical tables in the May 1, 1995
prospectus.
<PAGE>
FIDELITY INDEX 500 PORTFOLIO
Hypothetical Periodic Accumulation Values
TABLE 1 -- ACCUMULATION PERIOD
Hypothetical Accumulation Values at Annual Intervals
Following Contract Issuance on December 31, 1992
(Assuming $100 Monthly Purchase Payments made during each Contract Year)
Cumulative
Value at End Purchase Accumulation
of Month Payments Value(1)
December 1993 $ 1,200.00 $ 1,250.66
December 1994 2,400.00 2,452.86
TABLE 2 -- ACCUMULATION PERIOD
Hypothetical Accumulation Values at Quarterly Intervals
Following Contract Issuance on December 31, 1992
(Assumes Single $100 Net Purchase Payment made at Contract Issuance)
Value at End Accumulation Value at End Accumulation Value at End Accumulation
of Month Value(1) of Month Value(1) of Month Value(1)
March 1993 $104.05 Dec. 1993 $108.37 Sept. 1994 $108.54
June 104.07 March 1994 103.94 Dec. 108.14
Sept. 106.31 June 103.89
JANUS ASPEN GROWTH PORTFOLIO
Hypothetical Periodic Accumulation Values
TABLE 1 -- ACCUMULATION PERIOD
Hypothetical Accumulation Values at Annual Intervals
Following Contract Issuance on December 31, 1993
(Assuming $100 Monthly Purchase Payments made during each Contract Year)
Cumulative
Value at End Purchase Accumulation
of Month Payments Value(1)
December 1994 $ 1,200.00 $ 1,195.28
TABLE 2 -- ACCUMULATION PERIOD
Hypothetical Accumulation Values at Quarterly Intervals
Following Contract Issuance on December 31, 1993
(Assumes Single $100 Net Purchase Payment made at Contract Issuance)
Value at End Accumulation Value at End Accumulation
of Month Value(1) of Month Value(1)
March 1994 $100.85 Sept. 1994 $101.61
June 99.04 Dec. 101.49
(1) The Accumulation Value is net of all applicable fees and expenses of the
Fund and under the Contract; this is the amount available at withdrawal. Please
refer to the narrative preceding the hypothetical tables in the May 1, 1995
prospectus.
<PAGE>
JANUS ASPEN SHORT-TERM BOND PORTFOLIO
Hypothetical Periodic Accumulation Values
TABLE 1 -- ACCUMULATION PERIOD
Hypothetical Accumulation Values at Annual Intervals
Following Contract Issuance on December 31, 1993
(Assuming $100 Monthly Purchase Payments made during each Contract Year)
Cumulative
Value at End Purchase Accumulation
of Month Payments Value(1)
December 1994 $ 1,200.00 $ 1,203.61
TABLE 2 -- ACCUMULATION PERIOD
Hypothetical Accumulation Values at Quarterly Intervals
Following Contract Issuance on December 31, 1993
(Assumes Single $100 Net Purchase Payment made at Contract Issuance)
Value at End Accumulation Value at End Accumulation
of Month Value(1) of Month Value(1)
March 1994 $99.19 Sept. 1994 $99.38
June 98.48 Dec. 99.67
(1) The Accumulation Value is net of all applicable fees and expenses of the
Fund and under the Contract; this is the amount available at withdrawal. Please
refer to the narrative preceding the hypothetical tables in the May 1, 1995
prospectus.
<PAGE>
JANUS ASPEN WORLDWIDE PORTFOLIO
Hypothetical Periodic Accumulation Values
TABLE 1 -- ACCUMULATION PERIOD
Hypothetical Accumulation Values at Annual Intervals
Following Contract Issuance on December 31, 1993
(Assuming $100 Monthly Purchase Payments made during each Contract Year)
Cumulative
Value at End Purchase Accumulation
of Month Payments Value(1)
December 1994 $ 1,200.00 $ 1,186.75
TABLE 2 -- ACCUMULATION PERIOD
Hypothetical Accumulation Values at Quarterly Intervals
Following Contract Issuance on December 31, 1993
(Assumes Single $100 Net Purchase Payment made at Contract Issuance)
Value at End Accumulation Value at End Accumulation
of Month Value(1) of Month Value(1)
March 1994 $99.69 Sept. 1994 $101.59
June 97.48 Dec. 100.28
(1) The Accumulation Value is net of all applicable fees and expenses of the
Fund and under the Contract; this is the amount available at withdrawal. Please
refer to the narrative preceding the hypothetical tables in the May 1, 1995
prospectus.
