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VARIABLE ANNUITY ACCOUNT C
RETIREMENT PROGRAM FOR HIGHER EDUCATION -- GROUP VARIABLE ANNUITY CONTRACTS
ISSUED BY AETNA LIFE INSURANCE AND ANNUITY COMPANY
AUGUST 15, 1995 SUPPLEMENT TO PROSPECTUS DATED JUNE 13, 1995
The information in this Supplement updates and amends the information contained
in the Prospectus dated June 13, 1995 and should be read with that Prospectus.
Effective August 15, 1995, the following Funds have been added as variable
funding options available under the Contract. These Funds may not be available
to all Plans or in all states.
Alger American Growth Portfolio Janus Aspen Balanced Portfolio
Fidelity Contrafund Portfolio Janus Aspen Growth Portfolio
Fidelity Equity-Income Portfolio Janus Aspen Short-Term Bond Portfolio
Fidelity Growth Portfolio Janus Aspen Worldwide Growth Portfolio
Fidelity Overseas 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 -- 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 -- Growth
Portfolio ("Fidelity Growth Portfolio") seeks to achieve capital
appreciation by investing primarily in common stock, although the Fund is
not limited to any one type of security.
. Fidelity Investments' Variable Insurance Products Fund -- Overseas
Portfolio ("Fidelity Overseas Portfolio") seeks long-term growth of
capital primarily through investments in foreign securities (at least 65%
from at least three countries outside of North America). International
investments such as these involve greater risks than U.S. investments.
. Janus Aspen Series -- Balanced Portfolio ("Janus Aspen Balanced
Portfolio") seeks both long-term growth of capital and current income.
The Portfolio is designed for investors who want to participate in the
equity markets through a more moderate investment than a pure growth
fund. Investments in income-producing securities are intended to result
in a portfolio that provides a more consistent total return than may be
attainable through investing solely in growth stocks. The Portfolio is
not designed for investors who desire a consistent level of income.
. 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.
Form X91846.00.2 Aetna Ed. 8/95
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. 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.
FEE TABLE INFORMATION
The following information applies to the above-referenced funds and should be
read in conjunction with the Fee Table contained on page 6 of the Prospectus:
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 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/) Fund
(after expense (after expense Annual
reimbursement) reimbursement) Expenses
------------------ -------------- --------
<S> <C> <C> <C>
Alger American Growth Portfolio 0.75% 0.11% 0.86%
Fidelity Contrafund Portfolio(/3/) 0.62% 0.27% 0.89%
Fidelity Equity-Income Portfolio(/5/) 0.52% 0.06% 0.58%
Fidelity Growth Portfolio(/5/) 0.62% 0.07% 0.69%
Fidelity Overseas Portfolio 0.77% 0.15% 0.92%
Janus Aspen Balanced Portfolio(/4/) 0.83% 0.74% 1.57%
Janus Aspen Growth Portfolio(/4/) 0.66% 0.22% 0.88%
Janus Aspen Short-Term Bond Portfolio(/4/) 0.00% 0.65% 0.65%
Janus Aspen Worldwide Growth Portfolio(/4/) 0.69% 0.49% 1.18%
</TABLE>
(/1/) Certain of the unaffiliated Fund advisers reimburse the Company for
administrative costs incurred in connection with administering the
funds as variable funding options under the Contract. These
reimbursements are paid out of the investment advisory fees and are not
charged to investors.
(/2/) A Fund's "Other Expenses" include operating costs of the Fund. The
deduction 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/) This Fund has only limited operating history and therefore the expenses
are estimated for the current fiscal year.
(/4/) The expense figures shown are net of certain expense waivers from Janus
Capital Corporation. Without such waivers, Investment Advisory Fees,
Other Expenses and Total Mutual Fund Annual Expenses for the Portfolios
for the fiscal year ended December 31, 1994 would have been: 1.00%,
0.74% and 1.74%, respectively, for Janus Aspen Balanced Portfolio;
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.
(/5/) 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 0.70% for the
Growth Portfolio.
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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.
Whether or not you withdraw or if you annuitize your Account, assuming a 5%
annual return on assets, you would have paid the following expenses on a
$1,000 investment at the end of the applicable time period:
<TABLE>
<CAPTION>
1 year 3 years
------ -------
<S> <C> <C>
Alger American Growth Portfolio $23 $71
Fidelity Contrafund Portfolio $23 $72
Fidelity Equity-Income Portfolio $20 $62
Fidelity Growth Portfolio $21 $65
Fidelity Overseas Portfolio $24 $72
Janus Aspen Balanced Portfolio $30 $92
Janus Aspen Growth Portfolio $23 $71
Janus Aspen Short-Term Bond Portfolio $21 $64
Janus Aspen Worldwide Growth Portfolio $26 $80
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CONDENSED FINANCIAL INFORMATION
There is no condensed financial information for the Funds referenced in this
supplement due to these funds not being available under the Contract until
August 15, 1995.
FUND INVESTMENT ADVISERS
The following information supplements the table contained on page 14 of the
Prospectus:
<TABLE>
<CAPTION>
Fund Investment Adviser
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<S> <C>
Alger American Growth Portfolio Fred Alger Management, Inc.
Fidelity Contrafund Portfolio Fidelity Management & Research Company
Fidelity Equity-Income Portfolio Fidelity Management & Research Company
Fidelity Growth Portfolio Fidelity Management & Research Company
Fidelity Overseas Portfolio Fidelity Management & Research Company
Janus Aspen Balanced Portfolio Janus Capital Corporation
Janus Aspen Growth Portfolio Janus Capital Corporation
Janus Aspen Short-Term Bond Portfolio Janus Capital Corporation
Janus Aspen Worldwide Growth Portfolio Janus Capital Corporation
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