<PAGE>
As filed with the Securities and Exchange Registration No. 33-88720
Commission on November 30, 1995 Registration No. 811-2513
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-4
- --------------------------------------------------------------------------------
REGISTRATION STATEMENT UNDER THE SECURITIES ACT OF 1933
Pre-Effective Amendment No. 1
and Amendment To
REGISTRATION STATEMENT UNDER THE INVESTMENT COMPANY ACT OF 1940
- --------------------------------------------------------------------------------
Variable Annuity Account C of Aetna Life Insurance and Annuity Company
(EXACT NAME OF REGISTRANT)
Aetna Life Insurance and Annuity Company
(NAME OF DEPOSITOR)
151 Farmington Avenue, RE4C, Hartford, Connecticut 06156
(ADDRESS OF DEPOSITOR'S PRINCIPAL EXECUTIVE OFFICES) (ZIP CODE)
Depositor's Telephone Number, including Area Code: (860) 273-7834
Susan E. Bryant, Counsel
Aetna Life Insurance and Annuity Company
151 Farmington Avenue, RE4C, Hartford, Connecticut 06156
(NAME AND ADDRESS OF AGENT FOR SERVICE)
- --------------------------------------------------------------------------------
Approximate Date of Proposed Public Offering: As soon as practicable after the
effective date of this Registration Statement.
It is proposed that this filing will become effective on December 15, 1995.
Pursuant to Rule 24f-2 under the Investment Company Act of 1940, Registrant has
registered an indefinite number of securities under the Securities Act of 1933.
Registrant filed a Rule 24f-2 Notice for the fiscal year ended December 31, 1994
on February 28, 1995.
<PAGE>
VARIABLE ANNUITY ACCOUNT C
CROSS REFERENCE SHEET
<TABLE>
<CAPTION>
Form N-4
Item No. Part A (Prospectus) Location
-------- ------------------- --------
<S> <C> <C>
1 Cover Page............................... Cover Page
2 Definitions.............................. Definitions
3 Synopsis or Highlights................... Prospectus Summary; Fee Table
4 Condensed Financial Information.......... Condensed Financial Information
5 General Description of Registrant,
Depositor, and Portfolio Companies....... The Company, Variable Annuity Account C
and Desription of the Funds
6 Deductions and Expenses.................. Charges and Deductions; Purchase -- Distribution
7 General Description of Variable Annuity
Contracts................................ Contracts; Miscellaneous
8 Annuity Period........................... Annuity Period
9 Death Benefit............................ Death Benefit
10 Purchases and Contract Value............. Purchase; Determining Contract Value
11 Redemptions.............................. Contracts
12 Taxes.................................... Tax Status
13 Legal Proceedings........................ Miscellaneous -- Legal Proceedings
14 Table of Contents of the Statement of
Additional Information................... Statement of Additional Information --
Table of Contents
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
Form N-4 Part B
Item No. (Statement of Additional Information) Location
-------- ------------------------------------- --------
<S> <C> <C>
15 Cover Page............................................. Cover page
16 Table of Contents...................................... Table of Contents
17 General Information and History........................ General Information and History
18 Services............................................... General Information and History;
Independent Auditors
19 Purchase of Securities Being Offered................... Offering and Purchase of Contracts
20 Underwriters........................................... Offering and Purchase of Contracts
21 Calculation of Performance Data........................ Performance Data
22 Annuity Payments....................................... Annuity Payments
23 Financial Statements................................... Financial Statements of the Separate Account
</TABLE>
Part C (Other Information)
--------------------------
Information required to be included in Part C is set forth under the appropriate
item, so numbered, in Part C to this Registration Statement.
<PAGE>
AETNA LIFE INSURANCE AND ANNUITY COMPANY
151 Farmington Avenue, Annuity Operations, Hartford, Connecticut 06156,
Telephone: 1-800-525-4225
VARIABLE ANNUITY ACCOUNT C
Prospectus Dated:
AETNAPLUS -- GROUP VARIABLE ANNUITY CONTRACT FOR
CERTAIN LARGE-CASE PUBLIC EMPLOYER DEFERRED COMPENSATION PLANS (SECTION 457):
GOVERNMENT
This Prospectus describes a group, deferred variable annuity contract issued by
Aetna Life Insurance and Annuity Company ("Company," "us" or "we"). The Contract
allows lump-sum payments and installment payments. The Contract is designed for
use in connection with large case deferred compensation plans ("Plans") adopted
by state and local governments for their employees or independent contractors,
or both under Section 457 of the Internal Revenue Code of 1986, as amended where
Aetna is the exclusive provider. See "Tax Status."
Purchase Payments made to an Account may be directed by the Contract Holder or
you, if permitted by the Contract Holder to (i) a fixed account (the Fixed
Account and/or the Fixed Plus Account, see Appendices II and III); (ii) the
Guaranteed Accumulation Account, if qualified for sale in your state (see
Appendix I); or (iii) a separate account ("Variable Annuity Account C") for
investment in one or more of the following variable funding options ("Funds"):
- AETNA VARIABLE FUND - FIDELITY VIP OVERSEAS PORTFOLIO
- AETNA INCOME SHARES - FRANKLIN GOVERNMENT SECURITIES
- AETNA VARIABLE ENCORE FUND TRUST
- AETNA INVESTMENT ADVISERS FUND, - JANUS ASPEN AGGRESSIVE GROWTH
INC. PORTFOLIO
- AETNA ASCENT VARIABLE PORTFOLIO - JANUS ASPEN BALANCED PORTFOLIO
- AETNA CROSSROADS VARIABLE PORTFOLIO - JANUS ASPEN FLEXIBLE INCOME
- AETNA LEGACY VARIABLE PORTFOLIO PORTFOLIO
- ALGER AMERICAN GROWTH PORTFOLIO - JANUS ASPEN GROWTH PORTFOLIO
- ALGER AMERICAN SMALL CAP PORTFOLIO - JANUS ASPEN SHORT-TERM BOND
- CALVERT RESPONSIBLY INVESTED PORTFOLIO
BALANCED PORTFOLIO - JANUS ASPEN WORLDWIDE GROWTH
- FIDELITY VIP II CONTRAFUND PORTFOLIO
PORTFOLIO - LEXINGTON NATURAL RESOURCES TRUST
- FIDELITY VIP EQUITY-INCOME - NEUBERGER & BERMAN GROWTH PORTFOLIO
PORTFOLIO - SCUDDER INTERNATIONAL PORTFOLIO
- FIDELITY VIP GROWTH PORTFOLIO - TCI GROWTH (A TWENTIETH CENTURY
FUND)
Your Plan may limit your choices to fewer than all of the Funds listed above.
Consult your employer and/or your enrollment materials to determine which Funds
are available. See "The Funds."
This Prospectus sets forth concisely the information about Variable Annuity
Account C ("Account C") that a prospective investor ought to know before
investing. Additional information about Account C is contained in a Statement of
Additional Information ("SAI") dated , which has been filed
with the Securities and Exchange Commission ("SEC") and is incorporated herein
by reference. The Table of Contents for the SAI is found in this Prospectus. An
SAI may be obtained without charge by indicating your request on the enrollment
form or on the prospectus receipt contained in this prospectus or by calling
1-800-525-4225.
THIS PROSPECTUS IS VALID ONLY WHEN ACCOMPANIED BY THE CURRENT PROSPECTUSES OF
THE FUNDS AND GUARANTEED ACCUMULATION ACCOUNT. ALL PROSPECTUSES SHOULD BE READ
AND RETAINED FOR FUTURE REFERENCE.
THE SECURITIES OFFERED BY THIS PROSPECTUS HAVE NOT BEEN APPROVED OR DISAPPROVED
BY THE SECURITIES AND EXCHANGE COMMISSION OR ANY STATE SECURITIES COMMISSION NOR
HAS THE SECURITIES AND EXCHANGE COMMISSION OR ANY STATE SECURITIES COMMISSION
PASSED UPON THE ACCURACY OR ADEQUACY OF THIS PROSPECTUS. ANY REPRESENTATION TO
THE CONTRARY IS A CRIMINAL OFFENSE.
NO PERSON IS AUTHORIZED BY THE COMPANY TO GIVE INFORMATION OR TO MAKE ANY
REPRESENTATIONS, OTHER THAN THOSE CONTAINED IN THIS PROSPECTUS, IN CONNECTION
WITH THE OFFERS CONTAINED IN THIS PROSPECTUS. THIS PROSPECTUS DOES NOT
CONSTITUTE AN OFFERING IN ANY JURISDICTION IN WHICH SUCH OFFERING MAY NOT
LAWFULLY BE MADE.
The Company has filed a registration statement (the "Registration Statement")
with the SEC under the Securities Act of 1933 relating to the Contracts offered
by this prospectus. This prospectus has been filed as a part of the Registration
Statement and does not contain all of the information set forth in the
Registration Statement and its exhibits. Reference is hereby made to such
Registration Statement and exhibits for further information relating to the
Company and the Contracts. The Registration Statement and its exhibits may be
inspected and copied at the public reference facilities of the SEC at Room 1024,
450 Fifth Street, N.W., Washington, D.C. 20549, at prescribed rates.
<PAGE>
TABLE OF CONTENTS
<TABLE>
<CAPTION>
Page
<S> <C>
DEFINITIONS......................................................................................... 4
PROSPECTUS SUMMARY.................................................................................. 6
FEE TABLE........................................................................................... 7
CONDENSED FINANCIAL INFORMATION..................................................................... 10
PERFORMANCE DATA.................................................................................... 12
THE COMPANY, VARIABLE ANNUITY ACCOUNT C AND DESCRIPTION OF THE FUNDS
The Company................................................................................... 12
The Separate Account.......................................................................... 12
Description of the Funds...................................................................... 12
Shared and Mixed Funding...................................................................... 16
Additional Funds, Limitations on Selection of Funds and Substitution of Funds................. 16
PURCHASE
Contract Purchase............................................................................. 16
Purchase Payments............................................................................. 17
Minimum and Maximum Purchase Payments......................................................... 17
Allocating Purchase Payments.................................................................. 17
Designations of Annuitant..................................................................... 17
Distribution.................................................................................. 17
DETERMINING CONTRACT VALUE
Accumulation Units............................................................................ 18
Net Investment Factor for Each Valuation Period............................................... 18
Transfer Credits.............................................................................. 19
CONTRACTS
General....................................................................................... 19
Right to Cancel............................................................................... 19
Purchase Payments............................................................................. 19
Rights Under the Contract..................................................................... 19
Allocation Changes and Transfers.............................................................. 20
Withdrawals During Accumulation Period........................................................ 20
CHARGES AND DEDUCTIONS
Mortality and Expense Risk Charges............................................................ 21
Administrative Expense Charges................................................................ 21
Fund Expenses................................................................................. 21
Charges for Withdrawals (Deferred Sales Charge)............................................... 21
Premium Tax................................................................................... 23
ADDITIONAL WITHDRAWAL OPTIONS
General....................................................................................... 23
Estate Conservation Option ("ECO")............................................................ 23
Systematic Withdrawal Option ("SWO").......................................................... 24
ANNUITY PERIOD
Annuity Period Elections...................................................................... 24
Annuity Options............................................................................... 25
</TABLE>
2
<PAGE>
<TABLE>
<CAPTION>
Page
DEATH BENEFIT
<S> <C>
Accumulation Period........................................................................... 26
Annuity Period................................................................................ 26
TAX STATUS
Federal Tax Status of the Company............................................................. 27
Use of the Contract........................................................................... 27
Tax Status of Amounts Distributed Under the Contract.......................................... 28
Accumulation Period......................................................................... 28
Annuity Period.............................................................................. 28
MISCELLANEOUS
Voting Rights................................................................................. 28
Modification of the Contract.................................................................. 28
Contract Holder Inquiries..................................................................... 29
Telephone Transfers........................................................................... 29
Transfer of Ownership, Assignment............................................................. 29
Legal Proceedings............................................................................. 29
Legal Matters................................................................................. 29
STATEMENT OF ADDITIONAL INFORMATION--TABLE OF CONTENTS.............................................. 30
APPENDIX I.......................................................................................... 31
APPENDIX II......................................................................................... 32
APPENDIX III........................................................................................ 33
</TABLE>
3
<PAGE>
DEFINITIONS
As used in this Prospectus, the following terms have the meanings shown:
ACCOUNT: A record established for each Participant, as directed by the Contract
Holder, to identify Contract values during the Accumulation Period.
ACCOUNT VALUE: The dollar value of amounts held in an Account as of any
valuation Period, including the value of the Accumulation Units in the Funds,
the amounts held in the Guaranteed Accumulation Account ("GAA"), and any amounts
invested in the Fixed Account and/or the Fixed Plus Account, plus interest
earned on those amounts, but excluding amounts used for Annuity Options.
ACCOUNT YEAR: The period of 12 months measured from the Account's Effective Date
or from an anniversary of such Effective Date.
ACCUMULATION PERIOD: The period during which Purchase Payment(s) credited to an
Account are invested to fund future annuity payments.
ACCUMULATION UNIT: A measure of the value of the Separate Account assets
attributable to each Fund used as a variable funding option.
AGGREGATE PURCHASE PAYMENT(S): The sum of all Purchase Payment(s) made under a
Contract.
ANNUITANT: A person on whose life an Annuity payment is based.
ANNUITY: A series of payments for life, for a definite period or a combination
of the two.
ANNUITY PERIOD: The period during which Annuity payments are made.
ANNUITY UNIT: A measure of the value attributable to each Fund selected during
the Annuity Period.
BENEFICIARY: The Contract Holder is the Contract beneficiary.
CODE: The Internal Revenue Code of 1986, as amended.
COMPANY: Aetna Life Insurance and Annuity Company, referred to as "us" or "we."
CONTRACT: The group deferred, variable annuity contracts offered by this
prospectus.
CONTRACT HOLDER: The entity to which the Contract is issued. The Contract Holder
has all right, title and interest in amounts held under the Contract.
DISTRIBUTOR(S): The registered broker-dealer(s) which have entered into selling
agreements with the Company to offer and sell the Contracts. The Company may
also serve as a Distributor.
EFFECTIVE DATE: The date the Company accepts and approves the Contract
application or enrollment form, as applicable.
FUNDS: The mutual funds offered as variable funding options for the investment
of assets of the Separate Account under the Contracts.
GAA: Guaranteed Accumulation Account, a credited interest option available in
certain jurisdictions for deposits under the Contract.
HOME OFFICE: The Company's principal executive offices located at 151 Farmington
Avenue, Hartford, Connecticut 06156.
NET PURCHASE PAYMENT(S): The Purchase Payment(s) less premium taxes, if
applicable.
PARTICIPANT: An eligible person participating in a Plan, referred to as "you."
Participants have no rights to the assets accumulated under the Plan.
PLAN(S): Deferred compensation plans adopted by state and local governments for
their employees or independent contractors (or both) under Section 457 of the
Code.
PURCHASE PAYMENT(S): The gross payment(s) made to the Company under a Contract.
PURCHASE PAYMENT PERIOD: For installment Purchase Payment Contracts, the period
of time for completion of the agreed upon annual number and amount of Purchase
Payments. For example, if it is determined that the Purchase
4
<PAGE>
Payment Period will consist of 12 payments per year and only 11 payments are
made, the Purchase Payment Period is not completed until the twelfth Purchase
Payment is made. When a particular remittance is intended to include more than
one regular Purchase Payment, we will credit the number of Purchase Payments
represented by such remittance in determining the Purchase Payment Period.
However, the number of completed Purchase Payment Periods may never be greater
that the number of full calendar years since the date an Account is established
under the Contract.
SEPARATE ACCOUNT: Variable Annuity Account C, an account that segregates assets
from other assets of the Company. The Separate Account holds shares of the Funds
acquired for the Contracts. The Company holds title to the assets held in the
Separate Account.
UNDERWRITER: The registered broker-dealer which contracts with other registered
broker-dealers on behalf of the Separate Accounts to offer and sell the
Contracts.
VALUATION PERIOD: The period of time from when a Fund determines its net asset
value until the next time it determines its net asset value, usually from 4:15
p.m. one business day to 4:15 p.m. the next such business day.
VALUATION RESERVE: A reserve established pursuant to the insurance laws of
Connecticut to measure voting rights during the Annuity Period and the value of
a commutation right available under the "Payments for a Stated Period of Time"
Annuity option when elected on a variable basis under the Contract.
VARIABLE ANNUITY CONTRACT: An Annuity Contract providing for the accumulation of
values and/or for Annuity payments which vary in dollar amount with investment
results.
5
<PAGE>
PROSPECTUS SUMMARY
CONTRACTS OFFERED
The Contract described in this prospectus is a group deferred variable annuity
contract. It allows lump-sum payments and installment payments. See "Purchase"
and "Contracts." The Contract is designed to allow the accumulation of assets
and to provide retirement benefits under large case deferred compensation plans
adopted by state and local governments, for their employees and independent
contractors under Section 457 of the Code. See "Contracts."
PURCHASE
The Contracts may be purchased by eligible organizations on behalf of a group
made up of their employees. The Contract Holder establishes an Account for
eligible employees by having them complete an enrollment form (and any other
required forms) and submitting it to the Company with an initial Purchase
Payment. Purchase Payments are made by salary reduction or by lump sum payments
from an eligible, existing plan. See "Purchase."
REDEMPTION
The Contract Holder may withdraw all or a portion of the Account Value during
the Accumulation Period by properly completing the Company's disbursement form
and sending it to the Company's Home Office. See "Contracts-- Withdrawals During
Accumulation Period."
DEFERRED SALES CHARGES
Amounts withdrawn may be subject to a deferred sales charge. The maximum
deferred sales charge that could be assessed on a full or partial withdrawal is
5% of the amount withdrawn. See "Charges and Deductions--Charges for
Withdrawals." Amounts withdrawn from GAA may be subject to a market value
adjustment. (See Appendix I.)
TAXES AND WITHHOLDING
Purchase Payments and investment results of the Separate Account credited to the
value of the Account are generally not taxable until distributed or made
available under the employer's Plan. Withholding for income tax may be imposed
on certain withdrawals. See "Tax Status--Tax Status of Amounts Distributed Under
the Contract."
CONTRACT CHARGES
Certain Charges are associated with these Contracts, for example, mortality and
expense risk charges and administrative expense charges. The Funds are also
subject to certain fees and expenses. Purchase Payments may also be subject to
premium taxes. See "Charges and Deductions" for a complete explanation of these
charges.
FREE LOOK PROVISION (RIGHT TO CANCEL)
Contract Holders have the right to cancel their Contract within 10 days after
receiving it (or as otherwise allowed by state law) by returning it to us along
with a written notice of cancellation. Unless state law requires otherwise the
amount you will receive on cancellation under this provision may reflect the
investment performance of the Purchase Payments deposited in the separate
account while invested. In certain cases, this may be less than the amount of
your Purchase Payments. See "Contracts--Right to Cancel."
6
<PAGE>
FEE TABLE
(BASED ON YEAR ENDED DECEMBER 31, 1994)
THIS FEE TABLE IS PROVIDED TO ASSIST IN UNDERSTANDING THE VARIOUS FEES AND COSTS
THAT YOU OR A CONTRACT HOLDER WILL BEAR DIRECTLY OR INDIRECTLY.(1) THE TABLE
SETS FORTH SEPARATE ACCOUNT CHARGES DUE UNDER THE CONTRACT AS WELL AS THOSE
DEDUCTED FROM THE FUNDS' ASSETS AS OF JANUARY 1, 1996. PRIOR TO THIS DATE HIGHER
FEES WERE CHARGED. THE TABLE DOES NOT TAKE INTO ACCOUNT ANY PREMIUM TAXES THAT
MAY BE APPLICABLE.
CONTRACT CHARGES AND EXPENSES
DEFERRED SALES CHARGE (as a percentage of amount withdrawn)(2)
<TABLE>
<CAPTION>
INSTALLMENT PURCHASE PAYMENT CONTRACT
(BASED ON COMPLETED
PURCHASE PAYMENT PERIODS) DEDUCTION
---------------------------------------- ---------
<C> <C>
Less than 5 5%
5 or more but less than 7 4%
7 or more but less than 9 3%
9 or 10 2%
more than 10 0%
<CAPTION>
SINGLE PURCHASE PAYMENT CONTRACT
(BASED ON COMPLETED
ACCOUNT YEARS) DEDUCTION
---------------------------------------- ---------
<C> <C>
Less than 5 5%
5 or more but less than 6 4%
6 or more but less than 7 3%
7 or more but less than 8 2%
8 or more but less than 9 1%
9 or more 0%
</TABLE>
SEPARATE ACCOUNT ANNUAL EXPENSES--VARIABLE OPTIONS ONLY(3)
(Daily deductions, equal to the percentage shown on an annual basis, made
from amounts allocated to the variable options)
<TABLE>
<S> <C>
During the Accumulation Period:
Mortality and Expense Risk Fees 0.95%
Administrative Expense Charge(4) 0%
---
Total Separate Account Annual Expenses 0.95 %
---
---
During the Annuity Period:
Mortality and Expense Risk Fees 1.25 %
Administrative Expense Charge(4) 0 %
---
Total Separate Account Annual Expenses 1.25 %
---
---
</TABLE>
- ------------------------
(1) See "Charges and Deductions" in this prospectus. For more information
regarding expenses paid out of the assets of a particular Fund, see the
Fund's prospectus.
(2) The amount deducted for the deferred sales charge will not exceed 8.5% of
the total Purchase Payments made to the Account. The deferred sales charge
may be referred to in the Contract as "surrender fee." See "Charges and
Deductions--Charges for Withdrawals (Deferred Sales Charge)" for instances
in which this charge may be waived.
(3) See "Charges and Deductions" for a description of these expenses.
(4) The Administrative Expense Charge is currently zero. However we reserve the
right to deduct a daily charge of not more than 0.25% per year from the
variable portion of Account Values.
(5) The Administrative Expense Charge is currently zero. However we reserve the
right to deduct a daily charge of not more than 0.25% per year from the
variable portion of Account Values.
7
<PAGE>
FUNDING OPTION ANNUAL EXPENSES
(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>
TOTAL
MANAGEMENT MUTUAL FUND
(ADVISORY) OTHER ANNUAL
FEES(1) EXPENSES(2) EXPENSES
-------------- -------------- -----------
<S> <C> <C> <C>
Aetna Variable Fund .25% .05% .30%
Aetna Income Shares .25% .08% .33%
Aetna Variable Encore Fund .25% .07% .32%
Aetna Investment Advisers Fund, Inc. .25% .07% .32%
Aetna Ascent Variable Portfolio(3) .50% .20% .70%
Aetna Crossroads Variable Portfolio(3) .50% .20% .70%
Aetna Legacy Variable Portfolio(3) .50% .20% .70%
Alger American Growth Portfolio .75% .11% .86%
Alger American Small Cap Portfolio .85% .11% .96%
Calvert Responsibly Invested Balanced
Portfolio .70% .10% .80%
Fidelity VIP II Contrafund
Portfolio(3) .62% .27% .89%
Fidelity VIP Equity-Income
Portfolio(4) .52% .06% .58%
Fidelity VIP Growth Portfolio(4) .62% .07% .69%
Fidelity VIP Overseas Portfolio .77% .15% .92%
Franklin Government Securities
Trust(5) .47% .16% .63%
Janus Aspen Aggressive Growth
Portfolio(6) .77% .28% 1.05%
Janus Aspen Balanced Portfolio(6) .83% .74% 1.57%
Janus Aspen Flexible Income
Portfolio(6) .30% .70% 1.00%
Janus Aspen Growth Portfolio(6) .66% .22% .88%
Janus Aspen Short-Term Bond
Portfolio(6) .00% .65% .65%
Janus Aspen Worldwide Growth
Portfolio(6) .69% .49% 1.18%
Lexington Natural Resources Trust(7) 1.00% .55% 1.55%
Neuberger & Berman Growth Portfolio(8) .79% .12% .91%
Scudder International Portfolio .88% .20% 1.08%
TCI Growth(9) 1.00% .00% 1.00%
</TABLE>
- --------------------------
(1) Certain of the unaffiliated Fund managers reimburse us for administrative
costs incurred in connection with administering the Funds as variable
funding options. These reimbursements are paid out of the managers'
investment advisory fees and are not charged to investors.
(2) A mutual fund's "Other Expenses" include operating costs of the fund. The
expenses are factored into the fund's net asset value - not deducted from
the Contract Holder's or your Account Value.
(3) These Funds have only limited operating history; therefore the expenses are
estimated for the current fiscal year.
(4) A portion of the brokerage commission the Fund paid was used to reduce its
expenses. Without this reduction, total operating expenses would have been
.60% for the Equity-Income Portfolio and .70% for the Growth Portfolio.
(5) The investment adviser for the Franklin Government Securities Trust has
agreed to reduce the investment advisory fee and to reimburse the Fund for
certain expenses. Without this agreement, the other expenses would have been
0.63% and total annual expenses for the Franklin Government Securities Trust
would be 0.78%.
(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 would have been: 1.00%, 0.28% and
1.28%, respectively, for Janus Aspen Aggressive Growth Portfolio; 1.00%,
0.74% and 1.74% respectively for Janus Aspen Balanced Portfolio; 0.65%,
0.70% and 1.35% respectively, for Janus Aspen Flexible Income Portfolio;
1.00%, .22% and 1.22%, respectively, for Janus Aspen Growth Portfolio; .65%,
.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.
(7) These fees as a percentage of assets are higher than those for other similar
funds, although the amounts of the fees are not, due to the limited amount
of assets in the fund.
8
<PAGE>
(8) Until May 1, 1995, the Portfolio had a Distribution Plan pursuant to Rule
12b-1 which provided for the reimbursement by Neuberger & Berman Management
of certain distribution expenses, up to a maximum of 0.25% on an annual
basis of the Portfolio's average daily net assets. The "Total Annual
Expenses" shown above would have been increased by 0.02% for each portfolio
if the 12b-1 fees for the months of January through April, 1995 were taken
into account.
(9) The Portfolio's investment adviser pays all expenses of the Portfolio except
brokerage commissions, taxes, interest, fees and expenses of the
non-interested directors (including counsel fees) and extraordinary
expenses.
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 based on the charges effective through December
31, 1995. (The expenses have been reduced and therefore, if the current charges
were used, the amounts would be less):
<TABLE>
<CAPTION>
IF YOU WITHDRAW YOUR ACCOUNT AT THE IF YOU DO NOT WITHDRAW YOUR ACCOUNT
END OF THE APPLICABLE TIME PERIOD: OR IF YOU ANNUITIZE:
1 YEAR 3 YEARS 5 YEARS 10 YEARS 1 YEAR 3 YEARS 5 YEARS 10 YEARS
------ ------- ------- -------- ------ ------- ------- --------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Aetna Variable Fund $65 $ 95 $129 $151 $13 $40 $ 69 $151
Aetna Income Shares $65 $ 96 $130 $155 $13 $41 $ 70 $155
Aetna Variable Encore Fund $65 $ 96 $130 $153 $13 $40 $ 70 $153
Aetna Investment Advisers Fund, Inc. $65 $ 96 $130 $153 $13 $40 $ 70 $153
Aetna Ascent Variable Portfolio $68 $107 $149 $195 $17 $52 $ 90 $195
Aetna Crossroads Variable Portfolio $68 $107 $149 $195 $17 $52 $ 90 $195
Aetna Legacy Variable Portfolio $68 $107 $149 $195 $17 $52 $ 90 $195
Alger American Growth Portfolio $70 $112 $157 $213 $18 $57 $ 98 $213
Alger American Small Cap Portfolio $71 $115 $161 $223 $19 $60 $103 $223
Calvert Responsibly Invested Balanced
Portfolio $69 $110 $154 $206 $18 $55 $ 95 $206
Fidelity VIP II Contrafund Portfolio $70 $113 $158 $216 $19 $58 $100 $216
Fidelity VIP Equity-Income Portfolio $67 $104 $143 $182 $16 $48 $ 83 $182
Fidelity VIP Growth Portfolio $68 $107 $148 $194 $17 $52 $ 89 $194
Fidelity VIP Overseas Portfolio $70 $113 $159 $218 $19 $58 $101 $218
Franklin Government Securities Trust $68 $105 $145 $188 $16 $50 $ 86 $188
Janus Aspen Aggressive Growth Portfolio $72 $117 $166 $233 $20 $63 $108 $233
Janus Aspen Balanced Portfolio $77 $132 $191 $286 $26 $78 $134 $286
Janus Aspen Flexible Income Portfolio $71 $116 $163 $227 $20 $61 $105 $227
Janus Aspen Growth Portfolio $70 $112 $157 $215 $19 $58 $ 99 $215
Janus Aspen Short-Term Bond Portfolio $68 $106 $146 $190 $16 $51 $ 87 $190
Janus Aspen Worldwide Growth Portfolio $73 $121 $172 $246 $22 $67 $114 $246
Lexington Natural Resources Trust $77 $132 $190 $284 $25 $78 $133 $284
Neuberger & Berman Growth Portfolio $70 $113 $159 $218 $19 $58 $101 $218
Scudder International Portfolio $72 $118 $167 $236 $21 $64 $109 $236
TCI Growth $71 $116 $163 $227 $20 $61 $105 $227
</TABLE>
9
<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
TEN-YEAR PERIOD ENDED DECEMBER 31, 1994 (AS APPLICABLE), IS DERIVED FROM THE
FINANCIAL STATEMENTS OF THE SEPARATE 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. THE ACCUMULATION UNIT VALUES AND THE PERCENTAGE CHANGE IN THE VALUE
OF AN ACCUMULATION UNIT REFLECT A MORTALITY AND EXPENSE RISK CHARGE OF 1.25% FOR
THE PERIODS SHOWN. AS OF THE DATE OF THIS PROSPECTUS, THE MORTALITY AND EXPENSE
RISK CHARGE WAS REDUCED TO 0.95%.
<TABLE>
<CAPTION>
1994 1993 1992 1991 1990 1989
----------- ---------- ---------- ---------- ---------- ----------
<S> <C> <C> <C> <C> <C> <C>
AETNA VARIABLE FUND
VALUE AT BEGINNING OF PERIOD $11.020 $10.454 $97.165 $77.845 $76.311 $59.871
VALUE AT END OF PERIOD $10.778 $11.020 $10.454(2) $97.165 $77.845 $76.311
INCREASE (DECREASE) IN VALUE OF ACCUMULATION
UNIT(1) (2.20)% 5.41% (2) 24.82% 2.01% 27.46%
NUMBER OF ACCUMULATION UNITS OUTSTANDING AT
END OF PERIOD 114,733,035 44,166,470 21,250 20,948,226 18,362,906 17,142,820
AETNA INCOME SHARES
VALUE AT BEGINNING OF PERIOD $10.905 $10.068 $36.789 $31.192 $28.943 $25.574
VALUE AT END OF PERIOD $10.360 $10.905 $10.068(3) $36.789 $31.192 $28.943
INCREASE (DECREASE) IN VALUE OF ACCUMULATION
UNIT(1) (5.00)% 8.31% (3) 17.94% 7.77% 13.17%
NUMBER OF ACCUMULATION UNITS OUTSTANDING AT
END OF PERIOD 11,713,354 4,084,142 3,870 7,844,412 6,984,793 6,202,834
AETNA VARIABLE ENCORE FUND
VALUE AT BEGINNING OF PERIOD $10.241 $10.048 $33.812 $32.138 $30.012 $27.783
VALUE AT END OF PERIOD $10.528 $10.241 $10.048(4) $33.812 $32.138 $30.012
INCREASE (DECREASE) IN VALUE OF ACCUMULATION
UNIT(1) 2.80% 1.92% (4) 5.21% 7.08% 8.02%
NUMBER OF ACCUMULATION UNITS OUTSTANDING AT
END OF PERIOD 7,673,528 2,766,044 825 8,430,082 10,220,110 8,286,033
AETNA INVESTMENT ADVISERS
FUND, INC.
VALUE AT BEGINNING OF PERIOD $11.057 $10.189 $12.736 $10.896 $10.437 $10.000(5)
VALUE AT END OF PERIOD $10.868 $11.057 $10.189(6) $12.736 $10.896 $10.437
INCREASE (DECREASE) IN VALUE OF ACCUMULATION
UNIT(1) (1.71)% 8.52% (6) 16.89% 4.40% 4.37%
NUMBER OF ACCUMULATION UNITS OUTSTANDING AT
END OF PERIOD 23,139,604 11,368,365 11,508 22,898,099 17,078,985 9,535,986
ALGER AMERICAN SMALL CAP
PORTFOLIO
VALUE AT BEGINNING OF PERIOD $9.959 $10.000(7)
VALUE AT END OF PERIOD $9.437 $ 9.959
INCREASE (DECREASE) IN VALUE OF ACCUMULATION
UNIT(1) (5.24)% (0.41)%
NUMBER OF ACCUMULATION UNITS OUTSTANDING AT
END OF PERIOD 6,339,407 781,836
CALVERT RESPONSIBLY INVESTED
BALANCED PORTFOLIO*
VALUE AT BEGINNING OF PERIOD $11.036 $10.278 $10.000(8)
VALUE AT END OF PERIOD $10.554 $11.036 $10.278
INCREASE (DECREASE) IN VALUE OF ACCUMULATION
UNIT(1) (4.37)% 7.37% 2.78%
NUMBER OF ACCUMULATION UNITS OUTSTANDING AT
END OF PERIOD 521,141 144,168 2,556
FRANKLIN GOVERNMENT SECURITIES
TRUST
VALUE AT BEGINNING OF PERIOD $10.642 $10.008 $10.000(8)
VALUE AT END OF PERIOD $10.119 $10.642 $10.008
INCREASE (DECREASE) IN VALUE OF ACCUMULATION
UNIT(1) (4.91)% 6.33% 0.08%
NUMBER OF ACCUMULATION UNITS OUTSTANDING AT
END OF PERIOD 325,365 167,137 5,559
<CAPTION>
1988 1987 1986 1985
---------- ---------- ---------- ----------
<S> <C> <C> <C> <C>
AETNA VARIABLE FUND
VALUE AT BEGINNING OF PERIOD $52.885 $50.760 $43.205 $33.323
VALUE AT END OF PERIOD $59.871 $52.885 $50.760 $43.205
INCREASE (DECREASE) IN VALUE OF ACCUMULATION
UNIT(1) 13.21% 4.19% 17.49% 29.66%
NUMBER OF ACCUMULATION UNITS OUTSTANDING AT
END OF PERIOD 16,455,396 16,497,406 16,578,251 14,186,456
AETNA INCOME SHARES
VALUE AT BEGINNING OF PERIOD $24.061 $23.308 $20.703 $17.145
VALUE AT END OF PERIOD $25.574 $24.061 $23.308 $20.703
INCREASE (DECREASE) IN VALUE OF ACCUMULATION
UNIT(1) 6.29% 3.23% 12.58% 20.75%
NUMBER OF ACCUMULATION UNITS OUTSTANDING AT
END OF PERIOD 5,955,293 5,372,271 6,188,470 4,673,837
AETNA VARIABLE ENCORE FUND
VALUE AT BEGINNING OF PERIOD $26.171 $24.812 $23.504 $21.942
VALUE AT END OF PERIOD $27.783 $26.171 $24.812 $23.504
INCREASE (DECREASE) IN VALUE OF ACCUMULATION
UNIT(1) 6.16% 5.48% 5.57% 7.12%
NUMBER OF ACCUMULATION UNITS OUTSTANDING AT
END OF PERIOD 8,154,644 7,326,151 6,692,947 7,220,756
AETNA INVESTMENT ADVISERS
FUND, INC.
VALUE AT BEGINNING OF PERIOD
VALUE AT END OF PERIOD
INCREASE (DECREASE) IN VALUE OF ACCUMULATION
UNIT(1)
NUMBER OF ACCUMULATION UNITS OUTSTANDING AT
END OF PERIOD
ALGER AMERICAN SMALL CAP
PORTFOLIO
VALUE AT BEGINNING OF PERIOD
VALUE AT END OF PERIOD
INCREASE (DECREASE) IN VALUE OF ACCUMULATION
UNIT(1)
NUMBER OF ACCUMULATION UNITS OUTSTANDING AT
END OF PERIOD
CALVERT RESPONSIBLY INVESTED
BALANCED PORTFOLIO*
VALUE AT BEGINNING OF PERIOD
VALUE AT END OF PERIOD
INCREASE (DECREASE) IN VALUE OF ACCUMULATION
UNIT(1)
NUMBER OF ACCUMULATION UNITS OUTSTANDING AT
END OF PERIOD
FRANKLIN GOVERNMENT SECURITIES
TRUST
VALUE AT BEGINNING OF PERIOD
VALUE AT END OF PERIOD
INCREASE (DECREASE) IN VALUE OF ACCUMULATION
UNIT(1)
NUMBER OF ACCUMULATION UNITS OUTSTANDING AT
END OF PERIOD
</TABLE>
10
<PAGE>
CONDENSED FINANCIAL INFORMATION (CONTINUED)
<TABLE>
<CAPTION>
1994 1993 1992
------------- ------------ ------------
<S> <C> <C> <C>
JANUS ASPEN AGGRESSIVE GROWTH PORTFOLIO
VALUE AT BEGINNING OF PERIOD $10.000(9)
VALUE AT END OF PERIOD $10.581
INCREASE (DECREASE) IN VALUE OF ACCUMULATION UNIT(1) 5.81%
NUMBER OF ACCUMULATION UNITS OUTSTANDING AT END OF
PERIOD 753,862
JANUS ASPEN FLEXIBLE INCOME PORTFOLIO
VALUE AT BEGINNING OF PERIOD $10.000(9)
VALUE AT END OF PERIOD $ 9.873
INCREASE (DECREASE) IN VALUE OF ACCUMULATION UNIT(1) (1.27)%
NUMBER OF ACCUMULATION UNITS OUTSTANDING AT END OF
PERIOD 28,543
LEXINGTON NATURAL RESOURCES TRUST
VALUE AT BEGINNING OF PERIOD $10.877 $ 9.832 $10.000(8)
VALUE AT END OF PERIOD $10.154 $10.877 $ 9.832
INCREASE (DECREASE) IN VALUE OF ACCUMULATION UNIT(1) (6.65)% 10.63% (1.68)%
NUMBER OF ACCUMULATION UNITS OUTSTANDING AT END OF
PERIOD 703,676 135,614 561
NEUBERGER & BERMAN GROWTH PORTFOLIO
VALUE AT BEGINNING OF PERIOD $11.747 $10.864 $10.000(8)
VALUE AT END OF PERIOD $11.026 $11.747 $10.864
INCREASE (DECREASE) IN VALUE OF ACCUMULATION UNIT(1) (6.14)% 8.13% 8.64%
NUMBER OF ACCUMULATION UNITS OUTSTANDING AT END OF
PERIOD 1,865,104 546,559 10,645
SCUDDER INTERNATIONAL PORTFOLIO
VALUE AT BEGINNING OF PERIOD $12.957 $ 9.578 $10.000(8)
VALUE AT END OF PERIOD $12.687 $12.957 $ 9.578
INCREASE (DECREASE) IN VALUE OF ACCUMULATION UNIT(1) (2.08)% 35.28% (4.22)%
NUMBER OF ACCUMULATION UNITS OUTSTANDING AT END OF
PERIOD 6,558,946 1,020,233 5,232
TCI GROWTH
VALUE AT BEGINNING OF PERIOD $12.069 $10.692 $10.000(8)
VALUE AT END OF PERIOD $11.781 $12.069 $10.692
INCREASE (DECREASE) IN VALUE OF ACCUMULATION UNIT(1) (2.39)% 12.88% 6.92%
NUMBER OF ACCUMULATION UNITS OUTSTANDING AT END OF
PERIOD 12,853,828 3,667,821 2,254
</TABLE>
(1) 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 CHARGES OR THE FIXED DOLLAR ANNUAL
MAINTENANCE FEE, IF ANY. INCLUSION OF THESE CHARGES WOULD REDUCE THE
INVESTMENT RESULTS SHOWN.
(2) THE ACCUMULATION UNIT VALUE WAS CONVERTED TO $10.000 ON AUGUST 21, 1992 UPON
THE COMMENCEMENT OF A NEW ADMINISTRATIVE SYSTEM. IMMEDIATELY PRIOR TO THAT
DATE, THE ACCUMULATION UNIT VALUE OF THE FUND WAS $97.817. ON THE DATE OF
CONVERSION, ADDITIONAL UNITS WERE ISSUED SO THAT ACCOUNT VALUES WERE NOT
CHANGED AS A RESULT OF THE CONVERSION. THE PERCENTAGE CHANGE IN THE
ACCUMULATION UNIT VALUE FROM THE BEGINNING OF THE YEAR TO THE DATE OF
CONVERSION WAS 0.67%; THE PERCENTAGE CHANGE IN THE ACCUMULATION UNIT VALUE
FROM THE DATE OF CONVERSION TO THE END OF THE YEAR WAS 4.54%.
(3) THE ACCUMULATION UNIT VALUE WAS CONVERTED TO $10.000 ON AUGUST 21, 1992 UPON
THE COMMENCEMENT OF A NEW ADMINISTRATIVE SYSTEM. IMMEDIATELY PRIOR TO THAT
DATE, THE ACCUMULATION UNIT VALUE OF THE FUND WAS $38.521. ON THE DATE OF
CONVERSION, ADDITIONAL UNITS WERE ISSUED SO THAT ACCOUNT VALUES WERE NOT
CHANGED AS A RESULT OF THE CONVERSION. THE PERCENTAGE CHANGE IN THE
ACCUMULATION UNIT VALUE FROM THE BEGINNING OF THE YEAR TO THE DATE OF
CONVERSION WAS 4.70%; THE PERCENTAGE CHANGE IN THE ACCUMULATION UNIT VALUE
FROM THE DATE OF CONVERSION TO THE END OF THE YEAR WAS 0.68%.
(4) THE ACCUMULATION UNIT VALUE WAS CONVERTED TO $10.000 ON AUGUST 21, 1992 UPON
THE COMMENCEMENT OF A NEW ADMINISTRATIVE SYSTEM. IMMEDIATELY PRIOR TO THAT
DATE, THE ACCUMULATION UNIT VALUE OF THE FUND WAS $34.397. ON THE DATE OF
CONVERSION, ADDITIONAL UNITS WERE ISSUED SO THAT ACCOUNT VALUES WERE NOT
CHANGED AS A RESULT OF THE CONVERSION. THE PERCENTAGE CHANGE IN THE
ACCUMULATION UNIT VALUE FROM THE BEGINNING OF THE YEAR TO THE DATE OF
CONVERSION WAS 1.73%; THE PERCENTAGE CHANGE IN THE ACCUMULATION UNIT VALUE
FROM THE DATE OF CONVERSION TO THE END OF THE YEAR WAS 0.48%.
(5) THE INITIAL ACCUMULATION UNIT VALUE WAS ESTABLISHED AT $10.000 ON JUNE 23,
1989, THE DATE ON WHICH THE FUND COMMENCED OPERATIONS.
(6) THE ACCUMULATION UNIT VALUE WAS CONVERTED TO $10.000 ON AUGUST 21, 1992 UPON
THE COMMENCEMENT OF A NEW ADMINISTRATIVE SYSTEM. IMMEDIATELY PRIOR TO THAT
DATE, THE ACCUMULATION UNIT VALUE OF THE FUND WAS $13.118. ON THE DATE OF
CONVERSION, ADDITIONAL UNITS WERE ISSUED SO THAT ACCOUNT VALUES WERE NOT
CHANGED AS A RESULT OF THE CONVERSION. THE PERCENTAGE CHANGE IN THE
ACCUMULATION UNIT VALUE FROM THE BEGINNING OF THE YEAR TO THE DATE OF
CONVERSION WAS 2.99%; THE PERCENTAGE CHANGE IN THE ACCUMULATION UNIT VALUE
FROM THE DATE OF CONVERSION TO THE END OF THE YEAR WAS 1.89%.
(7) THE INITIAL ACCUMULATION UNIT VALUE WAS ESTABLISHED AT $10.000 ON SEPTEMBER
17, 1993, THE DATE ON WHICH THE PORTFOLIO BECAME AVAILABLE UNDER THE
CONTRACT.
(8) THE INITIAL ACCUMULATION UNIT VALUE WAS ESTABLISHED AT $10.000 ON AUGUST 21,
1992, THE DATE ON WHICH THE FUND/PORTFOLIO BECAME AVAILABLE UNDER THE
CONTRACT.
(9) THE INITIAL ACCUMULATION UNIT VALUE WAS ESTABLISHED AT $10.000 DURING
OCTOBER 1994, WHEN THE FUNDS WERE FIRST RECEIVED IN THIS OPTION.
* FORMERLY CALVERT SOCIALLY RESPONSIBLE SERIES.
11
<PAGE>
PERFORMANCE DATA
From time to time, we may advertise nonstandardized performance data for the
various investment options under the Contracts. Such data will show the
percentage change in the value of an Accumulation Unit based on the performance
of an investment option over a period of time, usually a calendar year. It is
determined by dividing the increase (decrease) in value for that unit by the
Accumulation Unit value at the beginning of the period. This percentage figure
will reflect the deduction of any asset based charges under the Contracts but
will not reflect the deduction of any applicable deferred sales charge. The
deduction of any applicable deferred sales charge would reduce any percentage
increase or make greater any percentage decrease.
Any advertisement will also include standardized total return figures calculated
as required by the SEC, as described in the Statement of Additional Information.
The total return figures do not reflect the deduction of any applicable deferred
sales charge, as well as any other Separate Account expenses.
THE COMPANY, VARIABLE ANNUITY ACCOUNT C
AND DESCRIPTION OF THE FUNDS
THE COMPANY
Aetna Life Insurance and Annuity Company ("Company," "us" or "we") the depositor
for the Separate Account is a stock life insurance company organized in 1976
under the insurance laws of the state of Connecticut. As of December 31, 1994,
the Company managed over $20.4 billion of assets. As of December 31, 1993, the
Company ranked among the top 2% of all U.S. life insurance companies by size. We
are a wholly owned subsidiary of Aetna Life and Casualty Company, which, with
its subsidiaries, constitutes one of the nation's largest diversified financial
services organizations. Our Home Office is located at 151 Farmington Avenue,
Hartford, Connecticut 06156.
THE SEPARATE ACCOUNT
Variable Annuity Account C is a separate account established by us prior to 1976
under the laws of the state of Connecticut. The Separate Account was formed for
the purpose of segregating assets attributable to the variable portions of
Contracts from Company assets. The Separate Account is registered as a unit
investment trust under the Investment Company Act of 1940.
Although the Company holds title to the assets of the Separate Account, such
assets are not chargeable with liabilities arising out of any other business we
may conduct. Income, gains or losses of the Separate Account are credited to or
charged against the assets of the Separate Account without regard to other
income, gains or losses of the Company. All obligations of the Company arising
under the Contracts are general corporate obligations.
DESCRIPTION OF THE FUNDS
The Contract Holder will designate some or all of the mutual funds described
below as variable funding options under the Contract. The Contract Holder, or
you, if allowed by the Contract Holder may select one or more of the Funds for
investment of the Purchase Payments made on your behalf. Except where noted, all
of the Funds are diversified as defined in the Investment Company Act of 1940.
- -AETNA VARIABLE FUND (sometimes called the "Growth and Income Fund") seeks to
maximize total return through investments in a diversified portfolio of common
stocks and securities convertible into common stock.
- -AETNA INCOME SHARES (sometimes called the "Bond Fund") seeks to maximize total
return, consistent with reasonable risk, through investments in a diversified
portfolio consisting primarily of debt securities.
- -AETNA VARIABLE ENCORE FUND (sometimes called the "Money Market Fund") seeks to
provide high current return, consistent with preservation of capital and
liquidity, through investment in high quality "money market" instruments. An
investment in the Fund is neither insured nor guaranteed by the U.S.
Government.
12
<PAGE>
- -AETNA INVESTMENT ADVISERS FUND, INC. (sometimes called the "Managed Fund") is a
managed mutual fund which seeks to maximize investment return consistent with
reasonable safety of principal by investing in one or more of the following
asset classes: stocks, bonds and cash equivalents, based on the Company's
judgment of which of those sectors or mix thereof offers the best investment
prospects.
- -AETNA GENERATION PORTFOLIOS, INC.--AETNA ASCENT VARIABLE PORTFOLIO seeks to
provide capital appreciation by allocating its investments among equities and
fixed income securities. Aetna Ascent Variable Portfolio is managed for
investors who generally have an investment horizon exceeding 15 years, and who
have a high level of risk tolerance. See the Fund's prospectus for a discussion
of the risks involved.
- -AETNA GENERATION PORTFOLIOS, INC.--AETNA CROSSROADS VARIABLE PORTFOLIO seeks to
provide total return (i.e., income and capital appreciation, both realized and
unrealized) by allocating its investments among equities and fixed income
securities. Aetna Crossroads Variable Portfolio is managed for investors who
generally have an investment horizon exceeding 10 years and who have a moderate
level of risk tolerance.
- -AETNA GENERATION PORTFOLIOS, INC.--AETNA LEGACY VARIABLE PORTFOLIO seeks to
provide total return consistent with preservation of capital by allocating its
investments among equities and fixed income securities. Aetna Legacy Variable
Portfolio is managed for investors who generally have an investment horizon
exceeding five years and who have a low level of risk tolerance.
- -ALGER AMERICAN FUND--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.
- -ALGER AMERICAN FUND--ALGER AMERICAN SMALL CAPITALIZATION PORTFOLIO ("Alger
American Small Cap Portfolio") seeks capital return through investment in the
common stock of smaller companies offering the potential for significant price
gain. It invests at least 85% of its net assets in equity securities and at
least 65% of its net assets in equity securities of companies that, at the time
of purchase, have "total market capitalization"--present market value per share
multiplied by the total number of shares outstanding--of less than $1 billion.
Investing in smaller companies may present risks not present in investments in
larger companies. See the Fund's prospectus for a discussion of these risks.
- -CALVERT RESPONSIBLY INVESTED BALANCED PORTFOLIO is a non-diversified portfolio
that seeks growth of capital through investment in enterprises that make a
significant contribution to society through their products and services and
through the way they do business. Prior to May 1, 1995, the Fund was known as
the Calvert Socially Responsible Series.
- -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 Portolio") 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.
- -FRANKLIN GOVERNMENT SECURITIES TRUST seeks income through investments in
obligations of the U.S. Government or its agencies or instrumentalities,
primarily GNMA obligations.
13
<PAGE>
- -JANUS ASPEN SERIES--AGGRESSIVE GROWTH PORTFOLIO ("Janus Aspen Aggressive Growth
Portfolio") is a non-diversified portfolio that seeks long-term growth of
capital by emphasizing investments in common stocks of companies with market
capitalizations between $1 billion and $5 billion.
- -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--FLEXIBLE INCOME PORTFOLIO ("Janus Aspen Flexible Income
Portfolio") seeks to maximize total return, consistent with preservation of
capital from a combination of current income and capital appreciation. Janus
Aspen Flexible Income Portfolio invests in all types of income-producing
securities, and may have substantial holdings of debt securities rated below
investment grade ("high yield, high risk securities") also commonly known as
"junk bonds." High yield, high risk securities involve certain risks. See the
Fund's prospectus for a discussion of these risks.
- -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 to 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.
- -LEXINGTON NATURAL RESOURCES TRUST is a nondiversified portfolio that seeks
long-term growth of capital through investment primarily in common stocks of
companies which own, or develop natural resources and other basic commodities
or supply goods and services to such companies. Current income will not be a
factor. Total return will consist primarily of capital appreciation. The Fund
may invest up to 25% of its total assets in foreign securities. Foreign
investing involves risks that differ from those involved in domestic investing.
See the Fund's prospectus for a discussion of these risks.
- -NEUBERGER & BERMAN ADVISERS MANAGEMENT TRUST--GROWTH PORTFOLIO ("Neuberger &
Berman Growth Portfolio") seeks capital growth through investments in common
stocks of companies that the investment adviser believes will have
above-average earnings or otherwise provide investors with above-average
potential for capital appreciation.
- -SCUDDER VARIABLE LIFE INVESTMENT FUND--INTERNATIONAL PORTFOLIO ("Scudder
International Portfolio") seeks long-term growth of capital primarily through
diversified holdings of marketable foreign equity investments. Investing in
foreign securities may involve a greater degree of risk than investing in
domestic securities. See the Fund's prospectus for a discussion of the risks
involved.
- -TCI PORTFOLIOS, INC.--TCI GROWTH (a Twentieth Century Fund) seeks capital
growth by investing in common stocks (including securities convertible into
common stocks) and other securities that meet certain fundamental and technical
standards of selection and, in the opinion of TCI Growth's management, have
better than average potential for appreciation. TCI Growth tries to stay fully
invested in such securities, regardless of the movement of prices generally.
The Fund may invest in foreign securities. Foreign investing involves risks
that differ from those involved in domestic investing. See the Fund's
prospectus for a discussion of these risks.
14
<PAGE>
There is no assurance that the Funds will achieve their investment objectives.
Participants bear the full investment risk of investment in the Funds selected.
Contract Holders should read the accompanying prospectuses of the Funds
carefully before investing.
Some of the Funds may use instruments known as derivatives as part of their
investment strategies as described in their respective prospectuses. The use of
certain derivatives such as inverse floaters and principal only debt instruments
may involve higher risk of volatility to a Fund. The use of leverage in
connection with derivatives can also increase risk of losses. See the prospectus
for the Funds for a discussion of the risks associated with an investment in
those funds.
The following identifies the investment adviser and the subadvisor, if any, for
each Fund.
<TABLE>
<CAPTION>
FUND INVESTMENT ADVISER SUBADVISER
- ---------------------------------------------------------------- ---------------------------------- -----------------------------
<S> <C> <C>
Aetna Variable Fund Aetna Life Insurance and --
Annuity Company (ALIAC)
Aetna Income Shares ALIAC --
Aetna Variable Encore Fund ALIAC --
Aetna Investment Advisers Fund, Inc. ALIAC --
Aetna Ascent Variable Portfolio ALIAC --
Aetna Crossroads Variable Portfolio ALIAC --
Aetna Legacy Variable Portfolio ALIAC --
Alger American Growth Portfolio Fred Alger Management, Inc. --
Alger American Small Cap Portfolio Fred Alger Management, Inc. --
Calvert Responsibly Invested Calvert Asset Management Company, NCM Capital Management Group,
Balanced Portfolio Inc. 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
Franklin Government Securities Trust Franklin Advisers, Inc. --
Janus Aspen Aggressive Growth Portfolio Janus Capital Corporation --
Janus Aspen Balanced Portfolio Janus Capital Corporation --
Janus Aspen Flexible Income 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 --
Lexington Natural Resources Trust Lexington Management Market Systems
Corporation Research Advisors, Inc.
Neuberger & Berman Growth Portfolio Neuberger & Berman Neuberger & Berman
Management Incorporated
Scudder International Portfolio Scudder, Stevens & Clark, Inc. --
TCI Growth Investors Research Corporation --
</TABLE>
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<PAGE>
More comprehensive information, including a discussion of potential risks, is
found in the current prospectus for each Fund, which is distributed with this
prospectus. Additional prospectuses and the Statements of Additional Information
for this prospectus and for each Fund prospectus can be obtained by writing to
our Home Office, Attention: Annuity Operations, or by calling 1-800-525-4225.
SHARED AND MIXED FUNDING
Shares of the Funds are sold to us for funding variable annuities. The Funds may
be sold to other companies for the same purpose. This is referred to as "shared
funding." Shares of the Funds may also be used for funding variable life
insurance policies through variable life separate accounts sponsored by us or by
third parties. This is referred to as "mixed funding."
It is conceivable that, in the future, it may be disadvantageous for variable
annuity separate accounts and variable life separate accounts of the same or of
an unaffiliated insurance company to invest in these Funds simultaneously, since
the interests of the contract holders or policy owners or of the insurance
companies may differ. Each Fund's Board of Trustees or Directors will monitor
events in order to identify any material irreconcilable conflicts which may
possibly arise and to determine what action, if any, should be taken. If such a
conflict were to occur, one of the separate accounts might withdraw its
investment in a Fund. This might force that Fund to sell portfolio securities at
disadvantageous prices.
ADDITIONAL FUNDS, LIMITATIONS ON SELECTION OF FUNDS AND SUBSTITUTIONS OF FUNDS
We may, from time to time, add additional mutual funds as eligible variable
funding options under the Contracts. In such event, the Contract Holder or you,
if permitted by the Contract Holder, may be permitted to select from these other
funds, subject to any conditions that may be imposed in connection with those
options. No more than 18 different choices may be made over the life of the
Account.
The Company's current policy is to allow only Aetna Funds to be used as variable
investment options during the Annuity Period. See "Annuity Period Elections."
The Contract Holder may decide to offer only a select number of Funds as funding
options under its Plan, or may decide to substitute shares of one Fund for
shares of another Fund currently held by the Separate Account.
PURCHASE
CONTRACT PURCHASE
An organization eligible to establish deferred compensation plans under Section
457 of the Code may acquire a group Contract for its Plan by filling out the
appropriate master application form and returning it to the Company or to a
Distributor for delivery to the Company. Once we approve the application, a
group Contract is issued to the organization as Contract Holder. The Contract
Holder exercises all rights under the Contracts. See "The Contracts." A Single
Purchase Payment Contract will be issued for lump-sum transfers of amounts
accumulated under a preexisting Plan. An installment Purchase Payment Contract
will be issued for continuing, periodic payments.
Employees of the Contract Holder may fill out an enrollment form or forms and
return them to the Company or to a Distributor for delivery to the Company for
review, acceptance or rejection. The Company must accept or reject an
application within two business days of its receipt. If the application is
incomplete, the Company may hold it and any accompanying Purchase Payment for
five days. Purchase Payments may be held for longer periods only with the
consent of the Contract Holder, pending acceptance of the application. If the
application is accepted, a Contract will be issued to the Contract Holder. Any
Purchase Payment accompanying the application or received prior to acceptance of
the application, will be invested as of the date of acceptance. If the
application is rejected, the application and any Purchase Payments will be
returned to the Contract Holder. Initial payments held for longer than the five
business days will be deposited in the Aetna Variable Encore Fund until the
forms are completed.
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The Contract Holder may cancel the contract within 10 days after receiving it.
Refer to "Contracts--Right to Cancel" for more information.
PURCHASE PAYMENTS
Once the application or enrollment form is accepted, Purchase Payments will be
credited to an Account for allocation to the applicable funding options. If
required, premium taxes will be deducted prior to crediting the Purchase
Payments to the Account. See "Charges and Deductions--Premium Tax" and
"Determining Contract Value--Accumulation Units."
The Code may limit the total amount of Purchase Payments made on a Participant's
behalf in a year.
MINIMUM AND MAXIMUM PURCHASE PAYMENTS
There is currently no minimum amount for lump-sum purchase payments; however,
the Company reserves the right to set such a minimum in the future. Installment
Purchase Payments must be at least $50 per month ($600 annually) per
Participant, and may not be less than $25 per payment.
The Code imposes a maximum limit on annual Purchase Payments that may be
excluded from your gross income. The limit is generally the lesser of $7,500 or
33 1/3% of your includable compensation (25% of gross compensation).
ALLOCATING PURCHASE PAYMENTS
Each Purchase Payment is forwarded to us through a Distributor.
The Contract Holder or you, if permitted by the Contract Holder, may elect to
have each Purchase Payment accumulate (i) on a variable basis through the
Separate Account by investment in shares of one or more of the Funds; (ii)
through the Fixed Account (see Appendix II) or the Fixed Plus Account (see
Appendix III); (iii) under the Guaranteed Accumulation Account, or (iv) in a
combination of (i), (ii) and (iii). Not all options are available under all
Plans. Your enrollment materials should indicate which options are available for
you. The Contract Holder, or you, if permitted by the Contract Holder, must
indicate on the enrollment forms how the Purchase Payments should be allocated
among the options. The allocations must be in terms of whole percentages. All
Purchase Payments received thereafter will be allocated in the same percentages
until new allocation instructions are received. See the applicable Appendix
regarding the allocation of amounts of the Fixed Account, Fixed Plus Account or
the Guaranteed Accumulation Account.
DESIGNATIONS OF ANNUITANT
Under the terms of the Contract, the Participant must be the Annuitant. See "The
Contract--Rights of the Contract and Account."
DISTRIBUTION
The Company will serve as Underwriter for the securities sold by this
Prospectus. The Company is registered as a broker-dealer with the Securities and
Exchange Commission and is a member of the National Association of Securities
Dealers, Inc. (NASD). As Underwriter, the Company will contract with one or more
registered broker-dealers ("Distributors"), including at least one affiliate of
the Company, to offer and sell the Contracts. All persons offering and selling
the Contracts must be registered representatives of the Distributors and must
also be licensed as insurance agents to sell Variable Annuity Contracts. These
registered representatives may also provide services to Participants in
connection with establishing their Accounts under the Contract.
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Persons offering and selling the Contracts may receive commissions in connection
with the sale of the Contracts. The maximum percentage amount that the Company
will ever pay as commission with respect to any given Purchase Payment is with
respect to those made during the first year of Purchase Payments under an
Account. That percentage amount will range from 1% to 6% of those Purchase
Payments. The Company may also pay renewal commissions on Purchase Payments made
after the first year and asset-based service fees. The average of all payments
made by the Company is estimated to equal approximately 3% of the total Purchase
Payments made over the life of an average Contract. The Company may also
reimburse the Distributor for certain actual expenses. The name of the
Distributor and the registered representative responsible for your Account are
set forth on your enrollment form. Commissions and sales related expenses are
paid by the Company and are not deducted from Purchase Payments. See "Charges
and Deductions--Deferred Sales Charge."
Occasionally, we may pay commissions and fees to Distributors which are
affiliated or associated with the Contract Holder or the Participants. We may
also enter into agreements with some entities associated with the Contract
Holder or Participants in which we would agree to pay the association for
certain services in connection with administering the Contracts. In both these
circumstances there may be an understanding that the Distributor or association
would endorse the Company as a provider of the Contract. You will be notified if
you are purchasing a Contract that is subject to these arrangements.
DETERMINING CONTRACT VALUE
ACCUMULATION UNITS
A Purchase Payment that is directed to one or more of the Funds is deposited in
the Separate Account and credited to the Account in the form of Accumulation
Units for each Fund selected. The number of Accumulation Units credited is
determined by dividing the applicable portion of the Purchase Payment by that
Contract's Accumulation Unit value of the appropriate Fund. The Accumulation
Unit value used is that next-computed following the date on which a Purchase
Payment is received, unless the application has not been accepted. In that
event, Purchase Payments will be credited at the Accumulation Unit value next
determined after acceptance of the application. Shares of the Funds are
purchased by the Separate Account at the net asset value next determined by the
Fund following receipt of Purchase Payments by the Separate Account, which will
be no later than the next business day following the crediting of the
Accumulation Units attributable to the Funds. The value of Accumulation Units
attributable to the Funds will be affected by the investment performance,
expenses and charges of those Funds.
Accumulation Units are valued separately for each Fund. Therefore, if you elect
to have a Purchase Payment invested in a combination of Funds, you will have
Accumulation Units credited from more than one source. The value of your Account
as of the most recent Valuation Period, is determined by adding the value of any
Accumulation Units attributed to the Fund(s) you have selected to the value of
any amounts invested in the Fixed Account, the Fixed Plus Account and in GAA.
NET INVESTMENT FACTOR FOR EACH VALUATION PERIOD
The value of an Accumulation Unit for any Valuation Period is calculated by
multiplying the Accumulation Unit value for the immediately preceding Valuation
Period by the net investment factor of the appropriate investment option for the
current period.
The net investment factor is calculated separately for each Fund in which assets
of Account C are invested. It is determined by adding 1.0000000 to the net
investment rate.
The net investment rate equals (a) the net assets of the Fund held by Account C
at the end of a Valuation Period, minus (b) the net assets of the Fund held by
Account C at the beginning of a Valuation Period, plus or minus (c) taxes or
provision for taxes, if any, attributable to the operation of Account C, divided
by (d) the value of the Fund's Accumulation
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and Annuity Units held by Account C at the beginning of the Valuation Period,
minus (e) a daily charge at an annual rate of 0.95% for the Annuity mortality
and expense risks, and a daily administrative expense charge which will not
exceed 0.25% (zero through April 30, 1996) on an annual basis. The net
investment rate may be more or less than zero.
TRANSFER CREDITS
The Company provides a transfer credit on transferred assets, subject to certain
conditions (and state approval). Transferred assets are the value of
contributions made on your behalf to this Plan or to a similar Plan, before the
amounts were applied to this Contract. This benefit is provided on a
nondiscriminatory basis if your Contract is eligible.
The transfer credit will equal a percentage of the transferred assets applied to
the Contract that remain in the Contract after a specified period of time. Once
transfer credit amounts are applied to the Accounts, all provisions of the
Contract apply. If a transfer credit is due under the Contract, you will be
provided with additional information specific to the Contract.
CONTRACTS
GENERAL
The Contracts are annuities which means that they provide payments in the future
for a fixed period or for life. See "Annuity Period." The amount of the payments
made during the Annuity Period will be determined by the amount of Purchase
Payments received by the Company for your Account and on the investment results
of the funding options that the Contract Holder, or you, if applicable, has
selected. The Contracts offer the ability to have Purchase Payments allocated to
a fixed account which guarantees a minimum rate of interest, to the Guaranteed
Accumulation Account, or to the Separate Account which allows the amounts to be
invested in the shares of a variety of different funds. See "The Funds."
The Contracts are designed for group deferred compensation plans offered by
state or local governments. The Contracts are offered under Section 457 of the
Code. Amounts held under the Plan may be entitled to tax-deferred treatment
under certain sections of the Code. See "Tax Status."
RIGHT TO CANCEL
The Contract Holder may cancel the Contract no later than ten days (or as
otherwise allowed by state law) after receiving the Contract by returning it,
along with a written notice of cancellation, to us. We will produce a refund not
later than seven days after we receive the Contract and the written notice at
our Home Office. Unless the applicable state law requires a refund of Purchase
Payment(s) only, we will refund the Purchase Payment(s) plus any increase or
minus any decrease in the value attributable to any Purchase Payment(s)
allocated to the Variable Option(s).
PURCHASE PAYMENTS
The Contract is available for Purchase Payments. It allows lump-sum transfers to
the Contract of amounts accumulated under a preexisting deferred compensation
plan under Section 457 of the Code. The Contract also allows installment
payments.
RIGHTS UNDER THE CONTRACT
All rights under the Contract rest with the Contract Holder, which is usually
the employer or other obligor under the Plan. The Contract will be part of the
employer's general assets, subject to the claims of its general creditors.
Benefits available to you are governed exclusively by the provisions of the Plan
and are backed only by the general assets of the employer. Some of the options
and elections under the Contract may not be available to you under the
provisions of the Plan.
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ALLOCATION CHANGES AND TRANSFERS
During each calendar year, the Contract Holder, or you, if permitted by the
Contract Holder, may change the allocation of future Net Purchase Payments among
the allowable investment options. Unlimited allocation changes are allowed.
We also allow unlimited transfers of accumulated values to available investment
options during the Accumulation Period, free of charge. Transfers of not less
than $500 may be made among the available Funds or from any of the Funds to a
credited interest options. Any transfer will be based on the Accumulation Unit
value next determined after we receive a valid request at our Home Office. See
Appendix I, II, and III for information on transfers from credited interest
options.
During the Annuity Period, transfers of accumulated values are not allowed.
WITHDRAWALS DURING ACCUMULATION PERIOD
The Contract Holder may withdraw all or a portion of the Account value during
the Accumulation Period by properly completing a disbursement form and sending
it to the Home Office. Disbursement forms are available from the Company and our
representatives. See "Tax Status of Amounts Distributed Under Contract."
Withdrawals may be requested in one of the following ways:
- - FULL WITHDRAWAL OF THE CONTRACT: The amount paid will be the full value of the
Funds, GAA and the Fixed Account held in all Accounts minus any applicable
deferred sales charge plus one-fifth of the amount held in the Fixed Plus
Account*, minus any Fixed Plus Account withdrawals, transfers or
annuitizations made in the prior 12 months. Amounts withdrawn from GAA may be
subject to a market value adjustment. See Appendix I.
- - FULL WITHDRAWAL OF AN ACCOUNT: The amount paid will be the full value of the
Funds, GAA and the Fixed Account held in the Account minus any applicable
deferred sales charge plus one-fifth of the amount held in the Fixed Plus
Account*, minus any Fixed Plus Account withdrawals, transfers or
annuitizations made in the prior 12 months. Amounts withdrawn from GAA may be
subject to a market value adjustment. See Appendix I.
- - PARTIAL WITHDRAWAL (PERCENTAGE): The amount paid will be the percentage of the
Account value requested minus any applicable deferred sales charge. However,
amounts withdrawn from the Fixed Plus Account may not exceed 20% minus any
Fixed Plus Account withdrawals, transfers or annuitizations in the prior 12
months.** Amounts withdrawn from GAA may be subject to a market value
adjustment. See Appendix I.
- - PARTIAL WITHDRAWAL (SPECIFIC DOLLAR AMOUNT): The amount paid will be the
dollar amount requested. However, the amount withdrawn from the Account will
equal the dollar amount requested, plus any applicable deferred sales charge.
The amount withdrawn from the Fixed Plus Account may not exceed 20% minus any
Fixed Plus Account withdrawals, transfers or annuitizations in the prior 12
months.** Amounts withdrawn from GAA may be subject to a market value
adjustment. See Appendix I.
* Note: The balance of the amount held in the Fixed Plus Account will be paid
in four annual installments. If the withdrawal is due to death, hardship
resulting from an unforeseen emergency, annuitization, separation from
service, or meets other qualifications, the entire amount held in the Fixed
Plus Account will be paid in one lump sum (or used to provide Annuity
payments) rather than in annual installments. See Appendix II for more
information.
** The 20% limit is waived if the partial withdrawal is due to annuitization or
death. See Appendix II for more information.
All amounts paid will be based on account values as of the end of the Valuation
Period in which the request is received in the Home Office. If a later payment
date is specified, the amount paid will be based on the Account Value as of that
date. For any partial withdrawal, unless requested otherwise by the Contract
Holder, the value of the Accumulation Units cancelled will be withdrawn
proportionately from each investment option used under the Account.
Payments for withdrawal requests, subject to the above limitations on
withdrawals from the Fixed Plus Account, will normally be made witin seven
calendar days after a properly completed disbursement form is received at our
Home
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Office or within seven calendar days of the date the disbursement form may
specify. Payments may be delayed for: (a) any period in which the New York Stock
Exchange ("Exchange") is closed (other than customary weekend and holiday
closings) or in which trading on the Exchange is restricted; (b) any period in
which an emergency exists where disposal of securities held by the funds is not
reasonably practicable or where it is not reasonably practicable for the value
of the assets of the Funds to be fairly determined; or (c) such other periods as
the SEC may by order permit for the protection of Contract Holders and
Participants. The conditions under which restricted trading or an emergency
exists shall be determined by the rules and regulations of SEC.
CHARGES AND DEDUCTIONS
This section describes the maximum Contract charges which we may deduct for
administrative expenses, sales-related expenses and transfer fees. A description
of mortality and expense risk charges and Fund expenses is also included.
MORTALITY AND EXPENSE RISK CHARGES
We make a daily deduction from the Separate Account for mortality and expense
risks (insurance charges). The deduction, made as part of the calculation of
Accumulation Unit value(s), is equivalent to 0.95% per year. During the Annuity
Period, the deduction for mortality and expense risks is equivalent to 1.25% per
year. The mortality risk charge is to compensate us for the risk we assume when
we promise to continue making lifetime payments to individual Annuitants for
their lifetimes according to Annuity rates specified in the Contract at issue.
The expense risk charge is to compensate us for the risk that actual expenses
for costs incurred under the Contract will exceed the maximum costs that can be
charged under the Contract. For 1994, we received $59,320,898 for mortality and
expense risks from Contracts under Account C.
ADMINISTRATIVE EXPENSE CHARGE
We reserve the right to deduct a daily charge of not more than 0.25% per year
from the variable portion of Contract values to reimburse us for some of the
expenses incurred by us for administering the Contract. We will establish this
charge on an annual basis effective each May 1 through April 30 of the following
year. During the Accumulation Period, the charge may fluctuate annually. Once an
Annuity option is elected, no further charge will be made to the then-effective
administrative fee deducted from the variable portion of Annuity payments. For
the period through April 30, 1996, we have established the charge to be zero.
Since the administrative charge is a percentage of the variable portion of
Contract values, there may be no relationship between the amount so deducted and
the amount of expenses attributable to the Contract.
FUND EXPENSES
Each Fund has an investment adviser. An investment advisory fee, based on the
Fund's average net assets, is deducted from the assets of each Fund and paid to
the investment adviser.
Most expenses incurred in the operations of each Fund (except TCI Growth) are
borne by that Fund. For further details on each Fund's expenses, you and the
Contract Holder should read the accompanying prospectus for each Fund, and refer
to the Fee Table in this prospectus.
CHARGES FOR WITHDRAWALS (DEFERRED SALES CHARGE)
There are no deductions from Purchase Payment(s) for sales or administrative
expenses.
However, if all or any portion of an Account value is withdrawn during the
Accumulation Period, a percentage of the amount withdrawn may be deducted from
that amount as a deferred sales charge, so that we may recover sales and
administration-related expenses. Deferred sales charges may be deducted from
amounts withdrawn during the first 10 Purchase Payment Periods (for Installment
Purchase Payment Contracts) or 9 Account Years (for Single Purchase Payment
Contracts), as set forth in the table below. In addition, if the nonlifetime
Annuity option is elected on a variable
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basis and the remaining value is withdrawn before three years of Annuity
payments have been completed, the applicable deferred sales charge will be
assessed. (See "Annuity Options.") For a further explanation of a deferred sales
charge calculation, see "Charges and Deductions--Withdrawals During Accumulation
Period."
The following tables reflect the deferred sales chare deduction as a percentage
of the amount withdrawn from the Funds, GAA and the Fixed Account.
<TABLE>
<CAPTION>
INSTALLMENT PURCHASE PAYMENT CONTRACT:
PURCHASE PAYMENT DEFERRED SALES
PERIODS COMPLETED CHARGE DEDUCTION
---------------------------------------- ----------------
<C> <C>
Less than 5 5%
5 or more but less than 7 4%
7 or more but less than 9 3%
9 or more but less than 10 2%
10 or more 0%
<CAPTION>
SINGLE PURCHASE PAYMENT CONTRACT:
COMPLETED DEFERRED SALES
ACCOUNT YEARS CHARGE DEDUCTION
---------------------------------------- ----------------
<C> <C>
Less than 5 5%
5 or more but less than 6 4%
6 or more but less than 7 3%
7 or more but less than 8 2%
8 or more but less than 9 1%
9 or more 0%
</TABLE>
The deduction for the deferred sales charge will not exceed 8.5% of the total
Purchase Payments made to the Account.
A deferred sales charge is not deducted from any portion of the Account value
which is:
(a) applied to provide Annuity benefits;
(b) withdrawn on or after the tenth anniversary of the Effective Date of the
Account;
(c) paid due to the death of the Participant;
(d) withdrawn due to the election of the Estate Conservation Option or the
Systematic Withdrawal Option;
(e) paid when the Contract Holder certifies that the withdrawal is due to an
unforseen emergency as specified by the Code;
(f) paid where the Account Value is $3,500 or less and no amount has been
withdrawn from that Account within the prior 12 months;
(g) paid due to the Participant's separation from service, or
(h) withdrawn from an installment Purchase Payment Contract provided the
Participant is at least age 59 1/2 and nine Purchase Payment periods have
been completed.
Based on our actuarial determination, we do not anticipate that the deferred
sales charge will cover all sales and administrative expenses which we will
incur in connection with the Contract. Also, we do not intend to profit from the
administrative expense charge, if imposed. We do hope to profit from the daily
deduction for mortality and expense risks. Any such profit, as well as any other
profit realized by us and held in the general account (which supports insurance
and Annuity obligations), would be available for any proper corporate purpose,
including, but not limited to, payment of sales and distribution expenses.
Reduction or elimination of the deferred sales charge can be made if we
anticipate we will incur decreased sales-related expenses due to the nature of
the Plan to which the Contract is issued. When considering a change to the
deferred sales charge, we will take into account:
(a) The size, characteristics and nature of the group to which a Contract is
issued.
(b) The expected level of initial agent or our involvement during the
establishment and maintenance of the Contract including the amount of
enrollment activity required, and the amount of service required by the
Contract Holder in support of the Plan.
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(c) Contract Holder involvement in conducting ongoing enrollment of subsequently
eligible Participants.
(d) Any other factors which we anticipate will affect the sales-related expenses
associated with the sale of the Contract in connection with the Plan.
PREMIUM TAX
Several states and municipalities impose a premium tax on Annuities. Currently
such taxes range up to 4%. Ordinarily, in states that do impose a premium tax,
it would be deducted from the amount applied to an Annuity option. However, we
reserve the right to deduct a state premium tax at any time from the Purchase
Payment(s) or from the Account Value based upon our determination of when such
tax is due.
ADDITIONAL WITHDRAWAL OPTIONS
GENERAL
We offer two withdrawal options that are not considered Annuity options: the
Estate Conservation Option ("ECO") and the Systematic Withdrawal Option ("SWO").
No deferred sales charge is assessed on the amounts distributed under these
options. Since ECO and SWO are not Annuity options, the Account remains in the
Accumulation Period, retains all the rights and flexibility described in this
prospectus, and is subject to all other Contract charges. The value of the
Accumulation Units cancelled will be withdrawn proportionately from the
investment options used under the Account. We reserve the right to discontinue
the availability of these options and to change the terms for future elections.
Once elected, the applicable option(s) may be revoked by the Contract Holder by
submitting a written request to our Home Office. Any revocation will apply only
to the amounts not yet paid. Once ECO or SWO is revoked, it may not be elected
again. However, if you die after revoking SWO but before a minimum distribution
is required, the Contract Holder can elect SWO on behalf of your spouse if your
spouse is the Plan beneficiary.
You should determine the availability of ECO and SWO under your 457 Plan (by
checking with your employer), and the terms and conditions that may apply (the
Code requires that any pay-out election under a deferred compensation plan must
be irrevocable).
SWO is different from ECO in the following ways: (1) SWO payments are made for a
fixed dollar amount or fixed time period whereas ECO payments vary in dollar
amount and are made during your lifetime, and (2) generally, SWO payments will
be higher than expected ECO payments. You should carefully assess your future
income needs when considering the election of these options.
ESTATE CONSERVATION OPTION ("ECO")
At the time of ECO election, the value of your Account applied to ECO must be at
least $10,000. The first distribution may not be made until the first day of the
calendar year in which you attain age 70 1/2 or retire, whichever occurs later.
We will calculate and distribute an annual amount using the method contained in
the Code's minimum distribution regulations. The annual distribution is
determined by dividing the prior December 31 value of the Account by a life
expectancy factor. The factor will be based on either your life expectancy or
the joint life expectancies of you and your designated Plan beneficiary, as
directed by the Contract Holder, and based on tables in IRS regulations. If ECO
is elected based only on your life expectancy, the full Account Value must be
distributed in the year following your death as required by current IRS
regulations. If ECO is based on joint life expectancy and the survivor dies, the
full Account must be distributed in the year following his or her death. Factors
will be recalculated for each year's distribution. The value of the Account to
be used in this calculation is the value on the December 31st prior to the year
for which payment is being made. This calculation will be changed, if necessary,
to conform to changes in the Code or applicable regulations.
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SYSTEMATIC WITHDRAWAL OPTION ("SWO")
SWO payments may be monthly, quarterly, semiannually or annually. However,
distributions may not be elected until you are eligible to begin receiving
distributions under the Plan. No election may be made that would result in a
payment of less than $250.
At the time of SWO election, the value of your Account(s) applied to SWO must be
at least $10,000.
One of two methods of distribution may be elected:
(a) Specified Payment--payments of a designated amount. The annual dollar amount
chosen cannot be greater than 20% of the initial cash value applied to SWO.
The Specified Payment amount will remain constant unless a higher amount is
required under Code distribution requirements. The minimum required
distribution is determined by dividing the value of the Account by the life
expectancy factor. If the dollar amount chosen is less than the Code's
minimum required distribution, we will pay the minimum distribution amount.
(b) Specified Period--payments for a designated time period. The specified
period must be at least 5 years but not greater than the Participant's life
expectancy factor. Each annual distribution is determined by dividing the
Account value on the December 31st prior to the year for which the payment
is being made by the number of years remaining in the elected period. For
payments made more often than annually, the annual payment result
(calculated above) is divided by the number of payments due each year.
A life expectancy factor from tables designated by the IRS will be used to
determine the minimum distribution amounts required. The factor will be based on
either your life expectancy or the joint life expectancies of you and your
designated beneficiary, as directed by the Contract Holder. Factors will be
reduced by one for each distribution year.
ANNUITY PERIOD
ANNUITY PERIOD ELECTIONS
The Contract Holder must notify us in writing of the Annuity start date and
Annuity option elected. Until a date and option are elected, the Account will
continue in the Accumulation Period (for details, see the Statement of
Additional Information).
The Contract Holder must give written notice to us at least 30 days before
Annuity payments begin, electing or changing (a) the date on which Annuity
payments are to begin, (b) the Annuity option, (c) whether the payments are to
be made monthly, quarterly, semiannually or annually, and (d) the investment
option(s) used to provide Annuity payments (i.e., an available credited interest
option, Aetna Variable Fund, Aetna Income Shares, Aetna Investment Advisers
Fund, Inc., or any combination thereof).
During the Annuity Period, we will deduct a daily mortality and expense risk
charge equivalent to 1.25% annually from amounts held under the variable
options.
We may also deduct a daily administrative expense charge from amounts held under
the variable options. The charge, established when a variable Annuity Option is
elected, will not exceed 0.25% per year of amounts held on a variable basis.
Once established the charge will be effective during the entire Annuity Period.
If Annuity payments are to be made on a variable basis, (i.e., Aetna Variable
Fund, Aetna Income Shares and/or Aetna Investment Advisers Fund, Inc. are
chosen), the first and subsequent payments will vary depending on the assumed
net investment rate (3 1/2% per annum, unless a 5% annual rate is elected).
Selection of a 5% rate causes a higher first payment, but Annuity payments will
increase thereafter only to the extent that the net investment rate exceeds 5%
on an
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annualized basis. Annuity payments would decline if the rate were below 5%. Use
of the 3 1/2% assumed rate causes a lower first payment, but subsequent payments
would increase more rapidly or decline more slowly as changes occur in the net
investment rate.
For purposes of Annuity payments, the Annuitant's adjusted age (and joint
annuitant's, if elected) will be used. The Annuitant's adjusted age is his or
her age as of the birthday closest to the date of the first Annuity payment
reduced by one year for Annuity start dates occurring through December 31, 1999.
The Annuitant's age (and joint annuitant's, if applicable) will be reduced by
two years for Annuity start dates occurring during January 1, 2000 through
December 31, 2009. The Annuitant's adjusted age (and joint annuitant's, if
applicable) will be reduced by one additional year for Annuity start dates in
each following decade.
No election may be made that would result in a first Annuity payment of less
than $20 or total yearly Annuity payments of less than $100. If the value of the
Account is insufficient to elect an option for the minimum amount specified, a
lump-sum payment must be elected.
When payments start, the age of the Annuitant plus the number of years for which
payments are guaranteed must not exceed 95.
A Participant or beneficiary will be subject to a 50% federal penalty tax on the
amount of distribution required each year which is not distributed under the
Code's minimum distribution rules.
The retirement date and the Annuity options available to you are normally
established by the terms of the Plan, subject to applicable provisions of the
Code. Generally, distributions from the Plan must begin by April 1 of the
calendar year following the calendar year in which you attain age 70 1/2 or
retire, whichever occurs later.
In determining the amount of benefit payments, the minimum distribution
incidental death benefit rule described in IRS regulations* must be satisfied.
Annuity payments may not extend beyond (a) your life, (b) the joint lives of you
and your Plan beneficiary, (c) a period certain greater than your life
expectancy, or (d) a period certain greater than the joint life expectancies of
you and your Plan beneficiary.
* This rule assures that any death benefits payable under the Plan are
incidental to the primary purpose of the Plan which is to provide retirement
benefits or deferred compensation to you. The amount to be distributed under
this rule is determined from tables contained in the IRS regulations and is
based on your age or the ages of you and your Plan beneficiary.
ANNUITY OPTIONS
LIFETIME
(a) Life Annuity--an Annuity with payments guaranteed to the date of the
Annuitant's death. This option may be elected with payments guaranteed for
5, 10, 15 or 20 years. Because it provides a specified minimum number of
Annuity payments, the election of a guaranteed payment period results in
somewhat lower payments.
(b) Life Income Based Upon the Lives of Two Payees--An Annuity will be paid
during the lives of the Annuitant and a second Annuitant. Payments will
continue until both Annuitants have died. When this option is chosen, a
choice must be made of:
(i) 100% of the payment to continue after the first death;
(ii) 66 2/3% of the payment to continue after the first death;
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(iii) 50% of the payment to continue after the first death;
(iv) Payments for a minimum of 120 months, with 100% of the payment to
continue after the first death; or
(v) 100% of the payment to continue at the death of the second Annuitant and
50% of the payment to continue at the death of the Annuitant;
Because (iv) provides a specified minimum number of Annuity payments, the
election of the guaranteed payment period results in somewhat lower payments
than options not providing a guaranteed payment period.
Payments under any lifetime Annuity option will be determined without regard to
the sex of the Annuitant(s). Such Annuity payments will be based solely on the
age of the Annuitant(s).
If a lifetime option is elected without a guaranteed minimum payment period, it
is possible that only one Annuity payment will be made if the Annuitant under
(a), or the surviving Annuitant under (b) should die prior to the due date of
the second Annuity payment.
Once lifetime Annuity payments begin, the Annuitant cannot elect to receive a
lump-sum settlement or change the Annuity option elected.
NONLIFETIME:
Under the nonlifetime option, the type of annuity (fixed or variable) and the
number of years that may be selected are determined by the investment options
used prior to annuitization.
Payments for a Stated Period of Time--For amounts held in the Fixed Plus
Account, an Annuity with payments to be made for at least five but not more than
thirty years on a fixed basis. For amounts held in the Funds, GAA or the Fixed
Account, an Annuity with payments to be made for three to thirty years, as
selected, on a fixed or variable basis. If the option is elected on a variable
basis, the Contract Holder may request at any time during the payment period
that the present value of all or any portion of the remaining variable payments
be paid in one sum. However, any lump-sum elected before three years of payments
have been completed will be treated as a withdrawal during the Accumulation
Period and any applicable deferred sales charge will be assessed. (See "Charges
and Deductions--Charges for Withdrawals (Deferred Sales Charge)".) This option
is not available on a variable basis under a Contract which provides for
immediate Annuity benefits.
We made a daily deduction for mortality and expense risks from any Contract
values held on a variable basis. (See "Charges and Deductions--Mortality and
Expense Risk Charges.") Therefore, electing the nonlifetime option on a variable
basis will result in a deduction being made even though we assume no mortality
risk.
In addition to the Annuity options described, we may, with the Contract Holder's
consent, make optional methods of payment available to you and other payees.
DEATH BENEFIT
A portion or all of any death proceeds may be (a) paid to the Plan beneficiary
in a lump sum; (b) applied under any of the Annuity Options; (c) subject to
applicable provisions of the Code, left in the variable investment options; or
(d) if the Plan beneficiary is your spouse, paid under ECO or SWO. Any lump-sum
payment paid during the Accumulation Period or allowed under the applicable
lifetime or nonlifetime Annuity options will normally be made within seven
calendar days after proof of death acceptance to us and a request for payment
are received at our Home Office.
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ACCUMULATION PERIOD
If a lump-sum distribution is elected, the Plan beneficiary will receive the
value of the Account determined as of the Valuation Period in which proof of
death acceptable to us and a request for payment from the Contract Holder are
received at our Home Office.
If your designated beneficiary under the Plan is your surviving spouse,
distribution under the Plan is not required to begin earlier than when you would
have attained age 70 1/2.
If your beneficiary under the Plan is not your surviving spouse, the Plan must
provide that either Annuity payments must begin within one year of your death,
or the entire value must be distributed within five years of your death. Annuity
payments may not extend beyond fifteen years.
In no event may payments to any beneficiary extend beyond the life of the
beneficiary or any period certain greater than the beneficiary's life
expectancy.
ANNUITY PERIOD
If an Annuitant dies after Annuity payments have begun, any death benefit
payable will depend upon the terms of the Contract and the Annuity option
selected.
If lifetime option (a) or (b) was elected without a guaranteed minimum payment
period under the Contract, Annuity payments will cease upon the death of the
Annuitant under a Life Annuity or the death of the second Annuitant under
options (b)(i) through (b)(v).
Under the Contract, if lifetime options (a) or (b) were elected with a
guaranteed minimum payment period and the death of the second Annuitant under
options (b)(i) through (b)(v) occurs prior to the end of that period, we will
pay to the designated Plan beneficiary in a lump sum, unless otherwise
requested, the present value of the guaranteed Annuity payments remaining. Such
value will be determined as of the Valuation Period in which proof of death
acceptable to us and a request for payment are received at our Home Office. The
value will be reduced by any payments made after the date of death.
If the nonlifetime option was elected under the Contract and the Annuitant dies
before all payments are made, the value of any remaining payments may be paid in
a lump sum to the Plan beneficiary and no deferred sales charge will be imposed.
Such value will be determined as of the Valuation Period in which proof of death
acceptable to us and a request for payment are received at our Home Office.
If the Annuitant dies after Annuity payments have begun and if there is a death
benefit payable under the Annuity option elected, Annuity payments must be
distributed to your designated Plan beneficiary at least as rapidly as under the
original method of distribution and in substantially nonincreasing amounts.
TAX STATUS
FEDERAL TAX STATUS OF THE COMPANY
We are taxed as a life insurance company in accordance with the Code. For
federal income tax purposes, the operations of the Separate Account form a part
of our total operations and are not taxed independently, although operations of
the Separate Account are treated separately for accounting and financial
statement purposes. Under the current provisions of the Code, the investment
income and realized capital gains of the Separate Account (i.e., income and
capital gains distributed to the Separate Account by the Funds) will not be
taxable to us to the extent such amounts are credited to the Contracts. Based on
this, no charge is being made currently to the Separate Account for federal
income taxes. However, we reserve the right to make a deduction for federal
income taxes attributable to the Contracts should such taxes be imposed in the
future.
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USE OF THE CONTRACT
The Contract is designed to provide deferred compensation benefits to
Participants under 457 deferred compensation plans adopted by state and local
governments for their employees or independent contractors, or both.
TAX STATUS OF AMOUNTS DISTRIBUTED UNDER THE CONTRACT
The following description of the federal income tax status of amounts received
under the Contracts is not exhaustive and is not intended to cover all
situations. You should seek advice from your tax advisers as to the application
of federal (and where applicable, state and local) tax laws to amounts received
by you and by your beneficiaries under the Contracts.
Federal income (and state taxes, if applicable) will be withheld from any
payments paid directly to you. We will report to the IRS the taxable portion
(generally all) of all distributions.
ACCUMULATION PERIOD
The Purchase Payments and investment results of Account C credited to value of
the Account are not taxable until distributed or made available under the
employer's Plan. Lump-sum payments, if paid directly to you, are considered
deferred wages and will be taxable to you in the year received or made
available.
ANNUITY PERIOD
Annuity Payments will generally be fully taxable as ordinary income when
received.
MISCELLANEOUS
VOTING RIGHTS
Each Contract Holder may direct us in the voting of shares at meetings of
shareholders of the appropriate Fund(s). The number of votes to which each
Contract Holder may give direction will be determined as of the record date.
The number of votes each Contract Holder is entitled to direct with respect to a
particular Fund during the Accumulation Period is equal to the portion of the
current value of the Contract attributable to that Fund, divided by the net
asset value of one share of that Fund. During the Annuity Period, the number of
votes is equal to the Valuation Reserve applicable to the portion of the
Contract attributable to that Fund, divided by the net asset value of one share
of that Fund. In determining the number of votes, fractional votes will be
recognized. Where the value of the Contract or Valuation Reserve relates to more
than one Fund, the calculation of votes will be performed separately for each
Fund.
Each Contract Holder will receive a notice of each meeting of shareholders of
the Fund, together with any proxy solicitation materials, and a statement of the
number of votes attributable to the Contract. Votes attributable to Contract
Holders who do not direct us will be cast by us in the same proportion as the
votes for which we have received directions.
MODIFICATION OF THE CONTRACT
Changes to the following Contract provisions may be considered material by us
and cannot be changed without the approval of appropriate state or federal
regulatory authorities; transfers among investment options; notification to the
Contract Holder; conditions governing payments of surrender values; terms of
Annuity options; and death benefit payments.
The following provisions may be changed with 30 days' advance written notice to
the Contract Holder, with the Contract Holder's consent. Such changes would only
apply to future Accounts;
(a) the Annuity options,
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(b) the contractual promise that no deduction will be made from Purchase
Payment(s) for sales or administrative expenses,
(c) the deferred sales charges, if applicable,
(d) the mortality and expense risk charges, and
(e) the administrative expense charge provision.
If a Contract Holder has not accepted a proposed change at the time of its
effective date, we will discontinue establishing new Accounts and we reserve the
right to discontinue accepting Purchase Payments to existing Accounts.
We may also change any provision that must be altered to comply with state or
federal law.
Once an Annuity has begun, we will not change the terms or the amount of the
Annuity payments, unless a change is deemed necessary to comply with Code
requirements or other laws and regulations affecting the Plan or Contract.
CONTRACT HOLDER INQUIRIES
A Contract Holder may direct inquiries to a local representative of the
Distributor or may write directly to us at the address shown on the cover page
of this prospectus.
TELEPHONE TRANSFERS
Subject to the Contract Holder's approval, you may elect to make transfers among
Funds by telephone. We have enacted procedures to prevent abuses of Account
transactions via the 800 number. The procedures include requiring the use of a
personal identification number (PIN) in order to execute transactions. You are
responsible for safeguarding your PIN, and for keeping Account information
confidential. If we fail to follow these procedures, we would be liable for any
losses to your Account resulting from the failure. To ensure authenticity, we
record all calls on the 800 line. Note: all Account information and transactions
permitted are subject to the terms of the Plan(s).
TRANSFER OF OWNERSHIP, ASSIGNMENT
Unless contract to applicable law, assignment of the Contract or Account is
prohibited.
LEGAL PROCEEDINGS
We and our Board of Directors know of no material legal proceedings pending to
which Account C is a party or which would materially affect the Account C.
LEGAL MATTERS
The validity of the securities offered has been passed upon by Susan E. Bryant,
Esq., Counsel of the Company.
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<TABLE>
<CAPTION>
STATEMENT OF ADDITIONAL INFORMATION--TABLE OF CONTENTS
The following items are the contents of the Statement of Additional Information:
<S> <C>
General Information and History.................................................................... 2
Offering and Purchase of Contracts................................................................. 2
Performance Data................................................................................... 2
General.......................................................................................... 2
Average Annual Total Return Quotations........................................................... 3
Annuity Payments................................................................................... 4
Dollar-Cost Averaging.............................................................................. 5
Sales Material..................................................................................... 6
Independent Auditors............................................................................... 6
Financial Statements of the Separate Account....................................................... S-1
Financial Statements of Aetna Life Insurance and Annuity Company................................... F-1
</TABLE>
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APPENDIX I
GUARANTEED ACCUMULATION ACCOUNT
THE GUARANTEED ACCUMULATION ACCOUNT ("GAA") IS A GUARANTEED INTEREST OPTION
AVAILABLE DURING THE ACCUMULATION PERIOD UNDER THE CONTRACTS DESCRIBED IN THIS
PROSPECTUS. SINCE GAA IS A FUNDING OPTION AVAILABLE UNDER THE COMPANY'S
CONTRACTS, YOU AND THE CONTRACT HOLDER SHOULD READ THE ACCOMPANYING GAA
PROSPECTUS CAREFULLY BEFORE INVESTING. THIS APPENDIX IS A SUMMARY OF GAA AND IS
NOT INTENDED TO REPLACE THE GAA PROSPECTUS.
GAA is a guaranteed interest option in which we guarantee stipulated rates of
interest for stated periods of time on amounts applied to GAA. The interest rate
stipulated is an annual effective yield; that is, it reflects a full year's
interest. Interest is credited daily at a rate that will provide the guaranteed
annual effective yield over the period of one year. This option guarantees the
minimum interest rate specified in the Contract.
During a specified period of time, amounts may be applied to any or all of
available Guaranteed Terms within the Short-Term and Long-Term Classifications.
The Short-Term Classification consists of all Guaranteed Terms of 3 years or
less and the Long-Term Classification consists of all Guaranteed Terms of 10
years or less, but greater than 3 years.
Withdrawals or transfers from a Guaranteed Term before the end of that
Guaranteed Term may be subject to a Market Value Adjustment ("MVA"). An MVA
reflects the change in the value of the investment due to changes in interest
rates since the date of deposit. When interest rates increase after the date of
deposit, the value of the investment decreases, and the MVA is negative.
Conversely, when interest rates decrease after the date of deposit, the value of
the investment increases, and the MVA is positive. It is possible that a
negative MVA could result in you receiving an amount that is less than the
amount paid into GAA.
As a Guaranteed Term matures, assets accumulating under GAA may be (a)
transferred to a new Guaranteed Term, (b) transferred to the other available
investment options, or (c) withdrawn. Amounts withdrawn may be subject to a
deferred sales charge and/or tax liabilities.
By notifying us at our Home Office at least 30 days before the Annuity payments
begin, amounts that have been accumulating under GAA may be transferred to Aetna
Variable Fund, Aetna Income Shares, Aetna Investment Advisers Fund, Inc., or any
combination thereof, to provide variable Annuity payments. GAA cannot be used as
an investment option during the Annuity Period.
MORTALITY AND EXPENSE RISK CHARGES
We make no deductions from the credited interest rate for mortality and expense
risks; these risks are considered in determining the credited rate.
TRANSFERS
Amounts applied to a Guaranteed Term during a deposit period may not be
transferred to any other funding option or to another Guaranteed Term during
that deposit period or for 90 days after the close of that deposit period.
Transfers are permitted from Guaranteed Terms of one Classification to available
Guaranteed Terms of another Classification. We will apply an MVA to GAA
transfers made before the end of a Guaranteed Term. Transfers of GAA values due
to a maturity are not subject to an MVA and are not counted as one of the 12
free transfers of accumulated values in the Account.
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APPENDIX II
THE FIXED ACCOUNT
THE FIXED ACCOUNT IS AN INVESTMENT OPTION AVAILABLE DURING THE ACCUMULATION
PERIOD UNDER THE CONTRACTS. THE FOLLOWING SUMMARIZES MATERIAL INFORMATION
CONCERNING THE FIXED ACCOUNT THAT IS OFFERED AS AN OPTION UNDER THE CONTRACT.
ADDITIONAL INFORMATION MAY BE FOUND IN THE CONTRACT. AMOUNTS ALLOCATED TO THE
FIXED ACCOUNT ARE HELD IN THE COMPANY'S GENERAL ACCOUNT THAT SUPPORTS INSURANCE
AND ANNUITY OBLIGATIONS. INTERESTS IN THE FIXED ACCOUNT HAVE NOT BEEN REGISTERED
WITH THE SEC IN RELIANCE ON EXEMPTIONS UNDER THE SECURITIES ACT OF 1933, AS
AMENDED. DISCLOSURE IN THIS PROSPECTUS REGARDING THE FIXED ACCOUNT, HOWEVER, MAY
BE SUBJECT TO CERTAIN GENERALLY APPLICABLE PROVISIONS OF THE FEDERAL SECURITIES
LAWS RELATING TO THE ACCURACY AND COMPLETENESS OF THE STATEMENTS. DISCLOSURE IN
THIS APPENDIX REGARDING THE FIXED ACCOUNT HAS NOT BEEN REVIEWED BY THE SEC.
FIXED ACCOUNT
This option guarantees that amounts allocated to this option will earn the
minimum interest rate specified in the Contract. We may credit a higher interest
rate from time to time. The Company's determination of interest rates reflects
the investment income earned on invested assets and the amortization of any
capital gains and/or losses realized on the sale of invested assets. Under this
option, we assume the risk of investment gain or loss by guaranteeing Net
Purchase Payment values and promising a minimum interest rate and Annuity
payment.
Under certain emergency conditions, we may defer payment of a Fixed Account
surrender value (a) for a period of up to 6 months or (b) as provided by federal
law. In addition, we may pay any Fixed Account surrender in equal payments over
a period not to exceed 60 months, when the Fixed Account value exceeds $250,000
on the day prior to the current surrender and the sum of the current Fixed
Account surrenders within the past 12 calendar months exceeds 20% of the amount
in the Fixed Account on the day prior to the current surrender.
Amounts applied to the Fixed Account will earn the interest rate in effect when
actually applied to the Fixed Account.
The Fixed Account will reflect a compound interest rate credited by us. The
interest rate quoted is an annual effective yield. We make no deductions from
the credited interest rate for mortality and expense risks; these risks are
considered in determining the credited rate.
If a withdrawal is made from the Fixed Account, a deferred sales charge may
apply. See "Charges and Deductions-- Deferred Sales Charge."
TRANSFERS AMONG INVESTMENT OPTIONS
Transfers from the Fixed Account to any other available investment option(s) are
allowed in each calendar year during the Accumulation Period. The amount which
may be transferred may vary at our discretion; however, it will never be less
than 10% of the amount held under the Fixed Account. Transfers to the Fixed Plus
Account (if available under the Contract) will be permitted without regard to
this limitation.
ANNUITIZATIONS
By notifying us at our Home Office at least 30 days before Annuity payments
begin, you may elect to have amounts which have been accumulating under the
Fixed Account transferred to one or more of the funds available during the
Annuity Period to provide variable Annuity payments.
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APPENDIX III
FIXED PLUS ACCOUNT
UNDER THE CREDITED INTEREST OPTION, CONTRACT VALUES ARE HELD IN THE COMPANY'S
GENERAL ACCOUNT WHICH SUPPORTS INSURANCE AND ANNUITY OBLIGATIONS. BECAUSE OF
PROVISIONS EXEMPTING THE GENERAL ACCOUNT FROM REGISTRATION AS AN INVESTMENT
COMPANY UNDER THE INVESTMENT COMPANY ACT OF 1940 AND EXEMPTING INTERESTS IN THE
GENERAL ACCOUNT FROM SECURITIES REGISTRATION UNDER THE SECURITIES ACT OF 1933,
NEITHER THE GENERAL ACCOUNT NOR THE PORTION OF CONTRACT VALUES HELD THEREIN IS
GENERALLY SUBJECT TO THE PROVISIONS OF THESE ACTS. DISCLOSURE IN THIS PROSPECTUS
REGARDING THE COMPANY'S GENERAL ACCOUNT AND CONTRACT VALUES HELD THEREIN UNDER
THE FOLLOWING CREDITED INTEREST OPTION, HOWEVER, MAY BE SUBJECT TO CERTAIN
GENERALLY APPLICABLE PROVISIONS OF THE FEDERAL SECURITIES LAWS RELATING TO THE
ACCURACY AND COMPLETENESS OF THE STATEMENTS. DISCLOSURE IN THIS APPENDIX
REGARDING THE GENERAL ACCOUNT AND INTERESTS THEREIN HAS NOT BEEN REVIEWED BY THE
COMMISSION.
CREDITED INTEREST OPTION
The Fixed Plus Account option guarantees the minimum Fixed Plus interest rate
specified in the Contract. We may credit a higher interest rate from time to
time. Our determination of credited interest rates reflects the investment
income earned on invested assets and the amortization of any capital gains
and/or losses realized on the sale of invested assets. Under this option, we
assume the risk of investment gain or loss by guaranteeing Net Purchase Payment
values and promising a minimum interest rate and Annuity payment.
The Fixed Plus Account will reflect a compound interest rate credited by us. The
interest rate quoted is an annual effective yield. Amounts applied to the Fixed
Plus Account will earn the Fixed Plus interest rate in effect when actually
applied to the Fixed Plus Account. We make no deductions from the credited
interest rate for mortality and expense risks; these risks are considered in
determining the credited rate.
Beginning on the tenth Account Year, we will credit amounts held in the Fixed
Plus Account with an interest rate that is 0.25% higher than the then-declared
interest rate for the Fixed Plus Accounts for Accounts that have not reached
their tenth anniversary.
We reserve the right to limit Net Purchase Payment(s) and/or transfers to the
Fixed Plus Account.
FIXED PLUS ACCOUNT WITHDRAWALS
The amount eligible for partial withdrawal is 20% of the amount held in the
Fixed Plus Account on the day we receive a written request in our Home Office,
reduced by any Fixed Plus Account withdrawals, transfers or annuitizations made
in the prior 12 months. In calculating the 20% limit, we reserve the right to
include payments made due to the election of SWO or ECO.
The 20% limit is waived if the partial withdrawal is due to annuitization,
death, hardship (when the conditions specified under (d) below are met), or
separation from service (when the conditions specified under (e) below are met).
For this waiver to apply, any such partial withdrawal must also be made pro rata
from all funding options used under the Account.
If a full withdrawal is requested, we will pay any amounts held in the Fixed
Plus Account in five payments, as follows:
- One-fifth of the Fixed Plus Account value on the day the request is
received, reduced by any Fixed Plus Account withdrawals, transfers or
annuitizations made in the prior 12 months;
- One-fourth of the remaining Fixed Plus Account value twelve months later;
- One-third of the remaining Fixed Plus Account value twelve months later;
- One-half of the remaining Fixed Plus Account value twelve months later;
and
- The balance of the Fixed Plus Account value twelve months later.
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Once we receive a request for a full withdrawal from an Account, no further
withdrawals or transfers will be permitted from the Fixed Plus Account.
A full withdrawal from the Fixed Plus Account may be canceled at any time before
the end of the five-payment period.
We will waive the Fixed Plus Account full withdrawal provision if the withdrawal
is made:
(a) due to your death, before Annuity payments begin;
(b) due to the election of any Annuity option;
(c) when the Fixed Plus Account value is $3,500 or less (and no withdrawals,
transfers or annuitization have been made from the Account within the prior
12 months);
(d) due to hardship from an unforeseeable emergency, as defined by the Code, if
the following conditions are met:
(1) the hardship is certified by the employer;
(2) the amount withdrawn is paid directly to you; and
(3) the amount paid for all partial and full withdrawals due to separation
from service during the previous 12-month period does not exceed 10% of
the average value of all Accounts under the Contract during that same
period.
(e) due to your separation from service with the Contract Holder provided that
(1) the employer certifies that you have separated from service;
(2) the amount withdrawn is paid directly to you; and
(3) the amount paid all partial and full withdrawals due to separation from
service during the previous 12-month period does not exceed 20% of the
average value of all Accounts under the Contract during that same
period.
TRANSFERS AMONG INVESTMENT OPTIONS
The amount eligible for transfer from the Fixed Plus Account is 20% of the
amount held in the Fixed Plus Account on the day we receive a written request in
our Home Office, reduced by any Fixed Plus Account withdrawals, transfers or
annuitizations made in the prior 12 months. In calculating the 20% limit, we
reserve the right to include payments made due to the election of SWO or ECO. We
will waive the 20% transfer limit when the value in the Fixed Plus Account is
$1,000 or less.
SWO
The Systematic Withdrawal Option may not be elected if you have requested a
Fixed Plus Account transfer or withdrawal within the prior 12-month period.
ANNUITIZATIONS
By notifying us at our Home Office at least 30 days before Annuity payment
begin, the Contract Holder may elect to have amounts which have been
accumulating under the Fixed Plus Account transferred to Aetna Variable Fund,
Aetna Income Shares, Aetna Investment Advisers Fund, Inc., or any combination
thereof, to provide lifetime variable Annuity payments.
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- --------------------------------------------------------------------------------
VARIABLE ANNUITY ACCOUNT C
OF
AETNA LIFE INSURANCE AND ANNUITY COMPANY
- --------------------------------------------------------------------------------
STATEMENT OF ADDITIONAL INFORMATION DATED , 199
----------- --
This Statement of Additional Information is not a prospectus and should be read
in conjunction with the current prospectus for Variable Annuity Account C (the
"Separate Account") dated ___________, 199_.
A free prospectus is available upon request from the local Aetna Life Insurance
and Annuity Company office or by writing to or calling:
Aetna Life Insurance and Annuity Company
Annuity Operations
151 Farmington Avenue
Hartford, Connecticut 06156
1-800-525-4225
Read the prospectus before you invest. Terms used in this Statement of
Additional Information shall have the same meaning as in the prospectus.
TABLE OF CONTENTS
PAGE
----
General Information and History. . . . . . . . . . . . . . . . . . . . 2
Offering and Purchase of Contracts . . . . . . . . . . . . . . . . . . 2
Performance Data . . . . . . . . . . . . . . . . . . . . . . . . . . . 2
General . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2
Average Annual Total Return Quotations . . . . . . . . . . . . . . . 3
Annuity Payments . . . . . . . . . . . . . . . . . . . . . . . . . . . 4
Dollar-Cost Averaging. . . . . . . . . . . . . . . . . . . . . . . . . 5
Sales Material . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6
Independent Auditors . . . . . . . . . . . . . . . . . . . . . . . . . 6
Financial Statements of the Separate Account . . . . . . . . . . . . . S-1
Financial Statements of Aetna Life Insurance and Annuity Company . . . F-1
<PAGE>
GENERAL INFORMATION AND HISTORY
Aetna Life Insurance and Annuity Company (the "Company") is a stock life
insurance company which was organized in 1976 under the insurance laws of the
State of Connecticut. The Company is a wholly owned subsidiary of Aetna Life
and Casualty Company which, with its subsidiaries, constitutes one of the
nation's largest diversified financial services organizations. The Company's
Home Office is located at 151 Farmington Avenue, Hartford, Connecticut 06156.
In addition to serving as the principal underwriter and the depositor for the
Separate Account, the Company is also a registered investment adviser under
the Investment Advisers Act of 1940, and a registered broker-dealer under the
Securities Exchange Act of 1934. The Company provides investment advice to
several of the registered management investment companies offered as variable
investment options under the Contracts funded by the Separate Account.
Other than the mortality and expense risk charges and administrative expense
charge described in the prospectus, all expenses incurred in the operations of
the Separate Account are borne by the Company. See "Charges and Deductions" in
the prospectus. The Company receives reimbursement for certain administrative
costs from some unaffiliated sponsors of the Funds used as funding options under
the Contract. These fees generally range from 0.15% to 0.25%.
The assets of the Separate Account are held by the Company. The Separate
Account has no custodian. However, the Funds in whose shares the assets of the
Separate Account are invested each have custodians, as discussed in their
respective prospectuses.
OFFERING AND PURCHASE OF CONTRACTS
The Company offers the Contracts through life insurance agents licensed to
sell variable annuities who are registered representatives of the Company or
of other registered broker-dealers who have sales agreements with the
Company. The offering of the Contracts is continuous.
A description of the manner in which Contracts are purchased may be found in
the prospectus under the sections titled "Contract Purchase" and "Determining
Contract Value."
PERFORMANCE DATA
GENERAL
From time to time, the Company may advertise different types of historical
performance for the variable options of the Separate Account available under the
Contracts issued by the Company in connection with Plans described in the
Prospectus. The Company may advertise the "standardized average annual total
returns," calculated in a manner prescribed by the Securities and Exchange
Commission (the "standardized return"), as well as the "non-standardized total
return," both of which are described below.
The standardized and non-standardized total return figures are computed
according to a formula in which a hypothetical initial Purchase Payment of
$1,000 is applied to the variable options under the Contract, and then
related to the ending redeemable values over one, three, five and ten year
periods (or fractional periods thereof). The standardized figures reflect
the deduction of all recurring charges during each period (e.g., mortality
and expense risk charges, as if the charge had been 0.95% during all periods
shown, administrative charges, and deferred sales charges). These charges
will be deducted on a pro rata basis in the case of fractional periods. If
you had invested in the contract prior to the effective date of the
prospectus, your actual performance would have been lower than the figures
shown since the mortality and expense risk charge prior to the effective date
of the prospectus was 1.25%. See the Condensed Financial Information table in
the Prospectus for the actual increase or decrease in the value of an
Accumulation Unit for those periods.
2
<PAGE>
The non-standardized figures will be calculated in a similar manner, except that
non-standardized figures will not reflect the deduction of any applicable
deferred sales charge (which would decrease the level of performance shown if
reflected in these calculations). The non-standardized figures may also include
a three year period.
For variable options of the Separate Account that were in existence prior to the
date the Fund became available under the Contract, standardized and non-
standardized total returns may include periods prior to the date on which such
Fund became available under the Contract. These figures are calculated by
adjusting the actual returns of the Fund to reflect the charges that would have
been assessed under the Contract (under the current charge structure) had that
Fund been available under the Contract during that period.
The total return quotations are based upon historical earnings and are not
necessarily representative of future performance. Investment results of the
Funds will fluctuate over time, and any presentation of the Funds' total return
quotations for any prior period should not be considered as a representation of
how the variable options will perform in any future period. Additionally, the
Account Value upon redemption may be more or less than your original cost.
AVERAGE ANNUAL TOTAL RETURN QUOTATIONS - STANDARDIZED AND NON-STANDARDIZED
The table shown below reflects the average annual standardized and non-
standardized total return quotation figures for the periods ended December 31,
1994 for the variable options under the Contract issued by the Company.
<TABLE>
<CAPTION>
---------------------------------------------------------------------------------
STANDARDIZED NON-STANDARDIZED FUND
INCEPTION
DATE
- -----------------------------------------------------------------------------------------------------------------------------
1 Year 5 Years 10 Years 1 Year 3 Years 5 Years 10 Years
- -----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Aetna Variable Fund -6.80% 5.93% 12.56% -1.90% 3.11% 7.02% 12.56% 04/30/75
- -----------------------------------------------------------------------------------------------------------------------------
Aetna Income Shares -9.47% 6.00% 9.21% -4.71% 3.29% 7.10% 9.21% 06/01/78
- -----------------------------------------------------------------------------------------------------------------------------
Aetna Variable Encore Fund -2.05% 3.11% 5.47% 3.11% 2.67% 4.17% 5.47% 09/01/75
- -----------------------------------------------------------------------------------------------------------------------------
Aetna Investment Advisers Fund, Inc. -6.23% 5.71% 6.01%* -1.29% 4.22% 6.80% 6.99% 06/23/89
- -----------------------------------------------------------------------------------------------------------------------------
Alger American Growth Portfolio -4.54% 13.08% 14.73%* 0.49% 10.71% 14.25% 15.72% 01/08/89
- -----------------------------------------------------------------------------------------------------------------------------
Alger American Small Cap Portfolio -9.70% 11.55% 17.23%* -4.95% 2.66% 12.70% 18.19% 09/21/88
- -----------------------------------------------------------------------------------------------------------------------------
Calvert Responsibly Invested
Balanced Portfolio** -8.88% 5.06% 8.18%* -4.08% 3.10% 6.14% 8.85% 09/30/86
- -----------------------------------------------------------------------------------------------------------------------------
Fidelity Equity-Income Portfolio 0.75% 8.35% 9.26%* 6.04% 12.89% 9.47% 9.95% 10/22/86
- -----------------------------------------------------------------------------------------------------------------------------
Fidelity Growth Portfolio -5.92% 8.71% 10.93%* -0.97% 8.24% 9.83% 11.63% 11/07/86
- -----------------------------------------------------------------------------------------------------------------------------
Fidelity Overseas Portfolio -4.28% 3.72% 5.36%* 0.76% 6.63% 4.79% 6.05% 02/13/87
- -----------------------------------------------------------------------------------------------------------------------------
Franklin Government Securities Trust 9.40% 5.25% 5.78% -4.63% 2.65% 6.33% 6.76% 05/30/89
- -----------------------------------------------------------------------------------------------------------------------------
Janus Aspen Aggressive Growth Portfolio 9.49% 21.58%* N/A 15.25% 26.48% N/A N/A 09/13/93
- ----------------------------------------------------------------------------------------------------------------------------
Janus Aspen Balanced Portfolio -5.10% 1.11%* N/A -0.11% 5.19% N/A N/A 09/13/93
- -----------------------------------------------------------------------------------------------------------------------------
Janus Aspen Flexible Income Portfolio 6.73% -4.92%* N/A -1.82% -1.09% N/A N/A 09/13/93
- -----------------------------------------------------------------------------------------------------------------------------
Janus Aspen Growth Portfolio -3.30% -0.15%* N/A 1.79% 3.87% N/A N/A 09/13/93
- -----------------------------------------------------------------------------------------------------------------------------
Janus Aspen Short-Term Bond Portfolio -5.03% -3.88%* N/A -0.03% -0.01% N/A N/A 09/13/93
- -----------------------------------------------------------------------------------------------------------------------------
Janus Aspen Worldwide Growth Portfolio -4.45% 10.22%* N/A 0.58% 14.67% N/A N/A 09/13/93
- -----------------------------------------------------------------------------------------------------------------------------
Lexington Natural Resources Trust -11.05% 5.38%* 7.34% -6.36% 19.94% 6.47% 8.39% 05/31/89
- -----------------------------------------------------------------------------------------------------------------------------
3
<PAGE>
STANDARDIZED NON-STANDARDIZED FUND
INCEPTION
DATE
- -----------------------------------------------------------------------------------------------------------------------------
1 Year 5 Years 10 Years 1 Year 3 Years 5 Years 10 Years
- -----------------------------------------------------------------------------------------------------------------------------
Neuberger & Berman Growth Portfolio -10.56% 4.21% 8.81%* -5.86% 3.45% 5.28% 9.43% 12/31/85
- -----------------------------------------------------------------------------------------------------------------------------
Scudder International Portfolio -6.70% 4.22% 7.35%* -1.79% 8.62% 5.29% 8.07% 04/30/87
- -----------------------------------------------------------------------------------------------------------------------------
TCI Growth -6.99% 7.23% 9.23%* -2.10% 2.78% 8.34% 10.02% 11/20/87
- -----------------------------------------------------------------------------------------------------------------------------
</TABLE>
*Although results are not available for the full calendar indicated,
the percentage shown is an average annual return since inception.
**Formerly known as Calvert Socially Responsible Series.
ANNUITY PAYMENTS
When Annuity payments are to begin, the value of the Contract or Account is
determined using Accumulation Unit values as of the tenth Valuation Period
before the first Annuity payment is due. Such value (less any applicable premium
tax) is applied to provide an Annuity in accordance with the Annuity and
investment options elected.
The Annuity option tables found in the Contract show, for each form of Annuity,
the amount of the first Annuity payment for each $1,000 of value applied.
Thereafter, variable Annuity payments fluctuate as the Annuity Unit value(s)
fluctuates with the investment experience of the selected investment option(s)
The first payment and subsequent payments also vary depending on the assumed net
investment rate selected (3.5% or 5% per annum). Selection of a 5% rate causes a
higher first payment, but Annuity payments will increase thereafter only to the
extent that the net investment rate increases by more than 5% on an annual
basis. Annuity payments would decline if the rate failed to increase by 5%. Use
of the 3.5% assumed rate causes a lower first payment, but subsequent payments
would increase more rapidly or decline more slowly as changes occur in the net
investment rate.
When the Annuity Period begins, the Annuitant is credited with a fixed number of
Annuity Units (which does not change thereafter) in each of the designated
investment options. This number is calculated by dividing (a) by (b), where (a)
is the amount of the first Annuity payment based on a particular investment
option, and (b) is the then current Annuity Unit value for that investment
option. As noted, Annuity Unit values fluctuate from one Valuation Period to the
next; such fluctuations reflect changes in the net investment factor for the
appropriate Fund(s) (with a ten Valuation Period lag which gives the Company
time to process Annuity payments) and a mathematical adjustment which offsets
the assumed net investment rate of 3.5% or 5% per annum.
The operation of all these factors can be illustrated by the following
hypothetical example. These procedures will be performed separately for the
investment options selected during the Annuity Period.
4
<PAGE>
EXAMPLE:
Assume that, at the date Annuity payments are to begin, there are 3,000
Accumulation Units credited under a particular Contract or Individual Account
and that the value of an Accumulation Unit for the tenth Valuation Period prior
to retirement was $13.650000. This produces a total value of $40,950.
Assume also that no premium tax is payable and that the Annuity table in the
Contract provides, for the option elected, a first monthly variable Annuity
payment of $6.68 per $1000 of value applied; the Annuitant's first monthly
payment would thus be 40.950 multiplied by $6.68, or $273.55.
Assume then that the value of an Annuity Unit for the Valuation Period in which
the first payment was due was $13.400000. When this value is divided into the
first monthly payment, the number of Annuity Units is determined to be 20.414.
The value of this number of Annuity Units will be paid in each subsequent month.
If the net investment factor with respect to the appropriate Fund is 1.0015000
as of the tenth Valuation Period preceding the due date of the second monthly
payment, multiplying this factor by .9999058* (to neutralize the assumed net
investment rate of 3.5% per annum built into the number of Annuity Units
determined above) produces a result of 1.0014057. This is then multiplied by the
Annuity Unit value for the prior Valuation Period (assume such value to be
$13.504376) to produce an Annuity Unit value of $13.523359 for the Valuation
Period in which the second payment is due.
The second monthly payment is then determined by multiplying the number of
Annuity Units by the current Annuity Unit value, or 20.414 times $13.523359,
which produces a payment of $276.07.
*If an assumed net investment rate of 5% is elected, the appropriate factor to
neutralize such assumed rate would be .9998663.
DOLLAR-COST AVERAGING
The term "dollar-cost averaging" describes a system of investing a uniform sum
of money at regular intervals over an extended period of time. It is based on
the economic fact that buying a variably priced item with a constant sum of
money at fixed intervals results in acquiring more of the item when prices are
low and less of it when prices are high. In order to maximize the effectiveness
of dollar-cost averaging, it is important that investors consider their
financial ability to continue purchasing the securities through periods of high
and low price levels. Investors should also note that no system can protect
against reduced values in a declining market.
SALES MATERIAL
The Company may include hypothetical illustrations in its sales literature that
explain the mathematical principles of dollar cost averaging, compounded
interest, tax deferred accumulation, and the mechanics of variable annuity
contracts. The Company may also discuss the difference between variable annuity
contracts and other types of savings or investment products, including, but not
limited to, personal savings accounts and Certificates of Deposit.
5
<PAGE>
INDEPENDENT AUDITORS
KPMG Peat Marwick LLP, CityPlace II, Hartford, Connecticut 06103-4103, are the
independent auditors for the Separate Account and for the Company. The services
provided to the Separate Account include primarily the examination of the
Separate Account's financial statements and the review of filings made with the
SEC.
6
<PAGE>
FINANCIAL STATEMENTS
VARIABLE ANNUITY ACCOUNT C
INDEX
Independent Auditors' Report
Statement of Assets and Liabilities
Statement of Operations
Statements of Changes in Net Assets
Notes to Financial Statements
Condensed Financial Information
S-1
<PAGE>
INDEPENDENT AUDITORS' REPORT
The Board of Directors of Aetna Life Insurance and Annuity Company and
Contract Owners of Variable Annuity Account C:
We have audited the accompanying statement of assets and liabilities of Aetna
Life Insurance and Annuity Company Variable Annuity Account C (the "Account") as
of December 31, 1994, the related statement of operations and condensed
financial information for the year then ended and the statements of changes in
net assets for each of the years in the two-year period then ended. These
financial statements and condensed financial information are the responsibility
of the Account's management. Our responsibility is to express an opinion on
these financial statements and condensed financial information based on our
audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements and condensed
financial information are free of material misstatement. An audit also includes
examining, on a test basis, evidence supporting the amounts and disclosures in
the financial statements. Our procedures included confirmation of securities
owned as of December 31, 1994, by correspondence with the custodian. An audit
also includes assessing the accounting principles used and significant estimates
made by management, as well as evaluating the overall financial statement
presentation. We believe that our audits provide a reasonable basis for our
opinion.
In our opinion, the financial statements and condensed financial information
referred to above present fairly, in all material respects, the financial
position of Aetna Life Insurance and Annuity Company Variable Annuity Account C
as of December 31, 1994, the results of its operations and condensed financial
information for the year then ended and the changes in its net assets for each
of the years in the two-year period then ended in conformity with generally
accepted accounting principles.
KPMG Peat Marwick LLP
Hartford, Connecticut
January 31, 1995
S-2
<PAGE>
VARIABLE ANNUITY ACCOUNT C
STATEMENT OF ASSETS AND LIABILITIES - December 31, 1994
<TABLE>
<CAPTION>
<S> <C>
ASSETS:
Investments, at net asset value: (Note 1)
Aetna Variable Fund; 115,046,067 shares at $26.23 per share (cost $2,938,078,798). . . . . . . . . $3,017,586,769
Aetna Income Shares; 28,987,528 shares at $11.72 per share (cost $373,229,679) . . . . . . . . . . 339,845,651
Aetna Variable Encore Fund; 18,165,132 shares at $12.55 per share (cost $230,182,227). . . . . . . 227,945,773
Aetna Investment Advisers Fund, Inc.; 48,115,691 shares at $12.23 per share
(cost $557,208,037). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 588,336,344
Aetna GET Fund, Series B; 6,130,437 shares at $9.92 per share (cost $61,658,244) . . . . . . . . . 60,813,035
Alger American Fund - Alger American Small Capitalization Portfolio; 2,504,238 shares at
$27.31 per share (cost $68,490,734). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 68,390,728
Calvert Socially Responsible Series; 11,114,321 shares at $1.44 per share (cost $16,386,553) . . . 16,015,737
Fidelity Investments Variable Insurance Products Fund II - Asset Manager Portfolio;
859,413 shares at $13.79 per share (cost $12,101,599). . . . . . . . . . . . . . . . . . . . . . 11,851,301
Fidelity Investments Variable Insurance Products Fund - Equity-Income Portfolio;
97,900 shares at $15.35 per share (cost $1,512,657). . . . . . . . . . . . . . . . . . . . . . . 1,502,758
Fidelity Investments Variable Insurance Products Fund - Growth Portfolio;
74,198 shares at $21.69 per share (cost $1,566,291). . . . . . . . . . . . . . . . . . . . . . . 1,609,365
Fidelity Investments Variable Insurance Products Fund - Overseas Portfolio
Portfolio; 35,965 shares at $15.67 per share (cost $575,367) . . . . . . . . . . . . . . . . . . 563,569
Franklin Government Securities Trust; 1,232,301 shares at $12.05 per share
(cost $15,779,220) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14,849,231
Janus Aspen Series - Aggressive Growth Portfolio; 937,913 shares at $13.62 per share
(cost $12,554,413) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12,774,375
Janus Aspen Series - Flexible Income Portfolio; 31,351 shares at $9.48 per share
(cost $307,352). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 297,205
Lexington Emerging Markets Fund, Inc.; 128,777 shares at $9.86 per share
(cost $1,392,103). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,269,745
Lexington Natural Resources Trust; 1,260,454 shares at $9.71 per share (cost $12,849,039). . . . . 12,239,010
Neuberger & Berman Advisers Management Trust- Growth Portfolio; 2,416,504 shares at
$20.31 per share (cost $52,391,344). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 49,079,202
Scudder Variable Life Investment Fund - International Portfolio; 13,314,695 shares at
$10.69 per share (cost $141,368,583) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 142,334,092
TCI Portfolios, Inc. - TCI Growth; 32,031,260 shares at $9.21 per share (cost $291,200,318) . . . . 295,007,901
--------------
NET ASSETS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $4,862,311,791
--------------
--------------
</TABLE>
See Notes to Financial Statements
S-3
<PAGE>
<TABLE>
<CAPTION>
VARIABLE ANNUITY ACCOUNT C
STATEMENT OF ASSETS AND LIABILITIES - December 31, 1994 (continued)
Net assets represented by: ACCUMULATION
UNIT
UNITS VALUE
--------------- --------------
Reserves for annuity contracts in accumulation period:
<S> <C> <C> <C>
AETNA VARIABLE FUND:
Qualified I. . . . . . . . . . . . . . . . . . . . . . . . . . 1,258,166.4 $138.406 $ 174,137,707
Qualified III. . . . . . . . . . . . . . . . . . . . . . . . . 13,966,072.4 105.558 1,474,234,355
Qualified IV . . . . . . . . . . . . . . . . . . . . . . . . . 269.0 63.884 17,183
Qualified V . . . . . . . . . . . . . . . . . . . . . . . . . 77,510.5 10.823 838,870
Qualified VI . . . . . . . . . . . . . . . . . . . . . . . . . 114,733,034.7 10.778 1,236,626,034
Qualified VII . . . . . . . . . . . . . . . . . . . . . . . . 2,703,365.0 10.136 27,402,446
Qualified VII. . . . . . . . . . . . . . . . . . . . . . . . . 3,454.8 10.011 34,586
Qualified IX . . . . . . . . . . . . . . . . . . . . . . . . . 23,601.2 9.879 233,158
Qualified X (1.15) . . . . . . . . . . . . . . . . . . . . . . 110,419.5 10.791 1,191,541
Qualified X (1.25) . . . . . . . . . . . . . . . . . . . . . . 602,837.7 10.778 6,497,560
AETNA INCOME SHARES:
Qualified I. . . . . . . . . . . . . . . . . . . . . . . . . . 161,534.6 40.570 6,553,450
Qualified III. . . . . . . . . . . . . . . . . . . . . . . . . 5,108,719.7 40.173 205,233,454
Qualified V. . . . . . . . . . . . . . . . . . . . . . . . . . 14,481.7 10.536 152,573
Qualified VI . . . . . . .. . . . . . . . . . . . . . . . . . . 11,713,354.4 10.360 121,354,557
Qualified VII. . . . . . . . . . . . . . . . . . . . . . . . . 49,298.1 9.565 471,526
Qualified VIII . . . . . . . . . . . . . . . . . . . . . . . . 440.2 9.543 4,201
Qualified IX . . . . . . . . . . . . . . . . . . . . . . . . . 4,120.5 9.570 39,432
Qualified X (1.15) . . . . . . . . . . . . . . . . . . . . . . 16,109.8 10.373 167,101
Qualified X (1.25) . . . . . . . . . . . . . . . . . . . . . . 148,192.7 10.360 1,535,329
AETNA VARIABLE ENCORE FUND:
Qualified I. . . . . . . . . . . . . . . . . . . . . . . . . . 241,159.0 36.723 8,856,130
Qualified III. . . . . . . . . . . . . . . . . . . . . . . . . 3,679,802.2 36.271 133,469,145
Qualified V. . . . . . . . . . . . . . . . . . . . . . . . . . 12,934.0 10.523 136,102
Qualified VI . . . . . . . . . . . . . . . . . . . . . . . . . 7,673,528.3 10.528 80,784,765
Qualified VII . . . . . . . . . . . . . . . . . . .. . . . . . 99,270.9 10.435 1,035,905
Qualified VIII . . . . . . . . . . . . . . . . . . . . . . . . 215.3 10.141 2,184
Qualified IX . . . . . . . . . . . . . . . . . . . . . . . . . 3,366.5 10.341 34,812
Qualified X (1.15) . . . . . . . . . . . . . . . . . . . . . . 9,735.5 10.541 102,618
Qualified X (1.25) . . . . . . . . . . . . . . . . . . . . . . 334,746.2 10.528 3,524,115
AETNA INVESTMENT ADVISERS FUND, INC.:
Qualified I. . . . . . . . . . . . . . . . . . . . . . . . . . 756,261.3 14.317 10,827,393
Qualified III. . . . . . . . . . . . . . . . . . . . . . . . . 21,990,186.1 14.270 313,799,955
Qualified V. . . . . . . . . . . . . . . . . . . . . . . . . . 11,773.4 10.900 128,330
Qualified VI . . . . . . . . . . . . . . . . . . . . . . . . . 23,139,603.9 10.868 251,481,215
Qualified VII. . . . . . . . . . . . . . . . . . . . . . . . . 144,586.5 10.434 1,508,616
Qualified VIII . . . . . . . . . . . . . . . . . . . . . . . . 120.8 10.091 1,219
Qualified IX . . . . . . . . . . . . . . . . . . . . . . . . . 4,574.1 10.000 45,741
Qualified X (1.15) . . . . . . . . . . . . . . . . . . . . . . 49,332.6 10.880 536,739
Qualified X (1.25) . . . . . . . . . . . . . . . . . . . . . . 261,895.1 10.868 2,846,276
</TABLE>
See Notes to Financial Statements
S-4
<PAGE>
<TABLE>
<CAPTION>
VARIABLE ANNUITY ACCOUNT C
STATEMENT OF ASSETS AND LIABILITIES - December 31, 1994 (continued)
ACCUMULATION
UNIT
UNITS VALUE
--------------- --------------
<S> <C> <C> <C>
AETNA GET FUND, SERIES B:
Qualified III. . . . . . . . . . . . . . . . . . . . . . . 113,700.1 $ 10.160 $ 1,155,184
Qualified VI . . . . . . . . . . . . . . . . . . . . . . . 5,515,433.4 10.160 56,036,373
Qualified X (1.25) . . . . . . . . . . . . . . . . . . . . 356,447.4 10.160 3,621,478
ALGER AMERICAN FUND - ALGER AMERICAN SMALL
CAPITALIZATION PORTFOLIO:
Qualified III. . . . . . . . . . . . . . . . . . . . . . . 665,518.0 9.513 6,331,073
Qualified V. . . . . . . . . . . . . . . . . . . . . . . . 4,574.5 9.461 43,282
Qualified VI . . . . . . . . . . . . . . . . . . . . . . . 6,339,406.7 9.437 59,827,174
Qualified VIII . . . . . . . . . . . . . . . . . . . . . . 1,056.6 9.889 10,449
Qualified X (1.15) . . . . . . . . . . . . . . . . . . . . 22,051.9 9.450 208,380
Qualified X (1.25) . . . . . . . . . . . . . . . . . . . . 208,784.3 9.437 1,970,370
CALVERT SOCIALLY RESPONSIBLE SERIES:
Qualified III. . . . . . . . . . . . . . . . . . . . . . . 743,464.3 13.990 10,401,066
Qualified V. . . . . . . . . . . . . . . . . . . . . . . . 8,469.2 10.839 91,795
Qualified VI . . . . . . . . . . . . . . . . . . . . . . . 521,140.5 10.554 5,500,118
Qualified VIII . . . . . . . . . . . . . . . . . . . . . . 2,401.5 9.590 23,031
FIDELITY INVESTMENTS VARIABLE INSURANCE PRODUCTS
FUND II - ASSET MANAGER PORTFOLIO:
Qualified III. . . . . . . . . . . . . . . . . . . . . . . 1,254,504.2 9.447 11,851,301
FIDELITY INVESTMENTS VARIABLE INSURANCE PRODUCTS
FUND - EQUITY-INCOME PORTFOLIO:
Qualified X (1.15) . . . . . . . . . . . . . . . . . . . . 43,852.1 10.409 456,470
Qualified X (1.25) . . . . . . . . . . . . . . . . . . . . 100,574.2 10.403 1,046,288
FIDELITY INVESTMENTS VARIABLE INSURANCE PRODUCTS
FUND - GROWTH PORTFOLIO:
Qualified X (1.15) . . . . . . . . . . . . . . . . . . . . 32,591.9 10.479 341,515
Qualified X (1.25) . . . . . . . . . . . . . . . . . . . . 121,069.6 10.472 1,267,850
FIDELITY INVESTMENTS VARIABLE INSURANCE PRODUCTS
FUND - OVERSEAS PORTFOLIO:
Qualified X (1.15) . . . . . . . . . . . . . . . . . . . . 5,097.9 9.480 48,326
Qualified X (1.25) . . . . . . . . . . . . . . . . . . . . 54,386.5 9.474 515,243
FRANKLIN GOVERNMENT SECURITIES TRUST:
Qualified III. . . . . . . . . . . . . . . . . . . . . . . 804,457.0 14.190 11,415,245
Qualified V. . . . . . . . . . . . . . . . . . . . . . . . 10,738.2 10.294 110,534
Qualified VI . . . . . . . . . . . . . . . . . . . . . . . 325,365.0 10.119 3,292,269
Qualified VIII . . . . . . . . . . . . . . . . . . . . . . 3,268.3 9.541 31,183
</TABLE>
See Notes to Financial Statements
S-5
<PAGE>
<TABLE>
<CAPTION>
VARIABLE ANNUITY ACCOUNT C
STATEMENT OF ASSETS AND LIABILITIES - December 31, 1994 (continued)
ACCUMULATION
UNIT
UNITS VALUE
------------ ------------
<S> <C> <C> <C>
JANUS ASPEN SERIES - AGGRESSIVE GROWTH PORTFOLIO:
Qualified III. . . . . . . . . . . . . . . . . . . . . . . 393,553.0 $12.169 $ 4,789,146
Qualified V. . . . . . . . . . . . . . . . . . . . . . . . 819.6 10.577 8,669
Qualified VI . . . . . . . . . . . . . . . . . . . . . . . 753,862.0 10.581 7,976,560
JANUS ASPEN SERIES - FLEXIBLE INCOME PORTFOLIO:
Qualified III. . . . . . . . . . . . . . . . . . . . . . . 1,554.8 9.911 15,410
Qualified VI . . . . . . . . . . . . . . . . . . . . . . . 28,542.8 9.873 281,795
LEXINGTON EMERGING MARKETS FUND, INC.:
Qualified III. . . . . . . . . . . . . . . . . . . . . . . 144,749.8 8.772 1,269,745
LEXINGTON NATURAL RESOURCES TRUST:
Qualified III. . . . . . . . . . . . . . . . . . . . . . . 533,015.5 9.412 5,016,742
Qualified V. . . . . . . . . . . . . . . . . . . . . . . . 7,349.7 10.496 77,142
Qualified VI . . . . . . . . . . . . . . . . . . . . . . . 703,676.0 10.154 7,145,126
NEUBERGER & BERMAN ADVISERS MANAGEMENT
TRUST - GROWTH PORTFOLIO:
Qualified III. . . . . . . . . . . . . . . . . . . . . . . 2,107,524.7 13.398 28,236,616
Qualified V. . . . . . . . . . . . . . . . . . . . . . . . 21,935.1 11.055 242,485
Qualified VI . . . . . . . . . . . . . . . . . . . . . . . 1,865,104.0 11.026 20,565,351
Qualified VIII . . . . . . . . . . . . . . . . . . . . . . 3,664.8 9.482 34,750
SCUDDER VARIABLE LIFE INVESTMENT FUND -
INTERNATIONAL PORTFOLIO:
Qualified III. . . . . . . . . . . . . . . . . . . . . . . 4,240,411.7 13.227 56,087,925
Qualified V. . . . . . . . . . . . . . . . . . . . . . . . 22,036.3 12.595 277,545
Qualified VI . . . . . . . . . . . . . . . . . . . . . . . 6,558,945.9 12.687 83,214,974
Qualified VIII . . . . . . . . . . . . . . . . . . . . . . 7,124.8 10.692 76,181
Qualified X (1.15) . . . . . . . . . . . . . . . . . . . . 23,840.2 12.701 302,803
Qualified X (1.25) . . . . . . . . . . . . . . . . . . . . 187,169.4 12.687 2,374,664
TCI PORTFOLIOS, INC. - TCI GROWTH:
Qualified III *. . . . . . . . . . . . . . . . . . . . . . 1,608,361.5 11.172 17,968,615
Qualified III. . . . . . . . . . . . . . . . . . . . . . . 12,096,731.2 10.213 123,547,291
Qualified V. . . . . . . . . . . . . . . . . . . . . . . . 15,078.2 11.740 177,018
Qualified VI . . . . . . . . . . . . . . . . . . . . . . . 12,853,827.6 11.781 151,426,971
Qualified VII. . . . . . . . . . . . . . . . . . . . . . . 14,330.4 9.911 142,029
Qualified VIII . . . . . . . . . . . . . . . . . . . . . . 4,377.2 9.939 43,505
Qualified IX . . . . . . . . . . . . . . . . . . . . . . . 957.4 9.693 9,280
Qualified X (1.15) . . . . . . . . . . . . . . . . . . . . 4,486.4 11.794 52,912
Qualified X (1.25) . . . . . . . . . . . . . . . . . . . . 139,234.6 11.781 1,640,280
Reserves for annuity contracts in payment period (Note 1). . 107,867,941
--------------
$4,862,311,791
--------------
--------------
</TABLE>
*Applies only to participants of the Opportunity Plus program and Multiple
Options Portfolio.
See Notes to Financial Statements
S-6
<PAGE>
<TABLE>
<CAPTION>
VARIABLE ANNUITY ACCOUNT C
STATEMENT OF OPERATIONS - Year Ended December 31, 1994
INVESTMENT INCOME:
<S> <C> <C>
Dividends: (Notes 1 and 3)
Aetna Variable Fund. . . . . . . . . . . . . . . . . . . . . . . . . $467,266,533
Aetna Income Shares. . . . . . . . . . . . . . . . . . . . . . . . . 23,593,571
Aetna Variable Encore Fund . . . . . . . . . . . . . . . . . . . . . 8,637,154
Aetna Investment Advisers Fund, Inc. . . . . . . . . . . . . . . . . 24,584,458
Aetna GET Fund, Series B . . . . . . . . . . . . . . . . . . . . . . 2,115,482
Alger American Fund - Alger American Small Capitalization Portfolio. 2,620,001
Calvert Socially Responsible Series. . . . . . . . . . . . . . . . . 497,655
Fidelity Investments Variable Insurance Products Fund II - Asset
Manager Portfolio. . . . . . . . . . . . . . . . . . . . . . . . . 5,798
Fidelity Investments Variable Insurance Products Fund - Equity-Income
Portfolio. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10,084
Franklin Government Securities Trust . . . . . . . . . . . . . . . . 930,986
Janus Aspen Series - Aggressive Growth Portfolio . . . . . . . . . . 92,229
Janus Aspen Series - Flexible Income Portfolio . . . . . . . . . . . 8,975
Lexington Emerging Markets Fund, Inc . . . . . . . . . . . . . . . . 26,666
Lexington Natural Resources Trust. . . . . . . . . . . . . . . . . . 45,284
Neuberger & Berman Advisers Management Trust - Growth Portfolio. . . 4,614,980
Scudder Variable Life Investment Fund - International Portfolio. . . 441,642
TCI Portfolios, Inc. - TCI Growth. . . . . . . . . . . . . . . . . . 25,820
-------------
Total investment income. . . . . . . . . . . . . . . . . . . . . . 535,517,318
Valuation period deductions (Note 2) . . . . . . . . . . . . . . . . . (59,320,898)
-------------
Net investment income. . . . . . . . . . . . . . . . . . . . . . . . . 476,196,420
-------------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS:
Net realized gain on sales of investments: (Notes 1 and 4)
Proceeds from sales. . . . . . . . . . . . . . . . . . . . . . . . . $293,968,699
Cost of investments sold . . . . . . . . . . . . . . . . . . . . . . 229,897,138
-------------
Net realized gain. . . . . . . . . . . . . . . . . . . . . . . . . 64,071,561
Net unrealized gain (loss) on investments:
Beginning of period. . . . . . . . . . . . . . . . . . . . . . . . . 719,363,247
End of period. . . . . . . . . . . . . . . . . . . . . . . . . . . . 73,479,233
-------------
Net unrealized loss. . . . . . . . . . . . . . . . . . . . . . . . (645,884,014)
-------------
Net realized and unrealized loss on investments. . . . . . . . . . . . (581,812,453)
-------------
Net decrease in net assets resulting from operations . . . . . . . . . $(105,616,033)
-------------
-------------
</TABLE>
See Notes to Financial Statements
S-7
<PAGE>
<TABLE>
<CAPTION>
VARIABLE ANNUITY ACCOUNT C
STATEMENTS OF CHANGES IN NET ASSETS
YEAR ENDED YEAR ENDED
DECEMBER 31, 1994 DECEMBER 31, 1993
------------------- ------------------
<S> <C> <C>
FROM OPERATIONS:
Net investment income. . . . . . . . . . . . . . . . . . . . . . . . . $ 476,196,420 $ 232,176,564
Net realized and unrealized gain (loss) on investments . . . . . . . . (581,812,453) 21,509,547
----------------- ----------------
Net increase (decrease) in net assets resulting from operations. . . (105,616,033) 253,686,111
----------------- ----------------
FROM UNIT TRANSACTIONS:
Variable annuity contract purchase payments. . . . . . . . . . . . . . 711,565,372 649,666,815
Sales and administrative charges deducted by the Company . . . . . . . (137,737) (165,303)
----------------- ----------------
Net variable annuity contract purchase payments. . . . . . . . . . . 711,427,635 649,501,512
Transfers from the Company for mortality guarantee adjustments . . . . 1,880,350 1,413,366
Transfers to the Company's fixed account options . . . . . . . . . . . (56,920,532) (17,366,092)
Transfers to other variable annuity accounts . . . . . . . . . . . . . (23,284,415) 0
Redemptions by contract holders. . . . . . . . . . . . . . . . . . . . (269,542,942) (210,939,684)
Annuity payments . . . . . . . . . . . . . . . . . . . . . . . . . . . (11,189,149) (8,655,687)
Other. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,452,959 1,717,888
----------------- ----------------
Net increase in net assets from unit transactions. . . . . . . . . . 353,823,906 415,671,303
----------------- ----------------
Change in net assets . . . . . . . . . . . . . . . . . . . . . . . . . 248,207,873 669,357,414
NET ASSETS:
Beginning of year. . . . . . . . . . . . . . . . . . . . . . . . . . . 4,614,103,918 3,944,746,504
----------------- ----------------
End of year. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 4,862,311,791 $ 4,614,103,918
----------------- ----------------
----------------- ----------------
</TABLE>
See Notes to Financial Statements
S-8
<PAGE>
VARIABLE ANNUITY ACCOUNT C
NOTES TO FINANCIAL STATEMENTS
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Variable Annuity Account C ("Account") is registered under the Investment
Company Act of 1940 as a unit investment trust. The Account is sold exclusively
for use with annuity contracts that are qualified under the Internal Revenue
Code of 1986, as amended.
The accompanying financial statements of the Account have been prepared in
accordance with generally accepted accounting principles.
a. VALUATION OF INVESTMENTS
Investments in the following Funds are stated at the closing net asset value per
share as determined by the each Fund on December 31, 1994:
<TABLE>
<CAPTION>
<S> <C>
Aetna Variable Fund Fidelity Investments Variable Insurance
Aetna Income Shares Products Fund-Overseas Portfolio
Aetna Variable Encore Fund Franklin Government Securities Trust
Aetna Investment Advisers Fund, Inc. Janus Aspen Series-Aggressive Growth
Aetna GET Fund, Series B Portfolio
Alger American Fund-Alger American Small Janus Aspen Series-Flexible Income Portfolio
Capitalization Portfolio Lexington Emerging Markets Fund, Inc.
Calvert Socially Responsible Series Lexington Natural Resources Trust
Fidelity Investments Variable Insurance Neuberger & Berman Advisers Management
Products Fund II-Asset Manager Portfolio Neuberger & Berman Advisers Management
Fidelity Investments Variable Insurance Trust-Growth Portfolio
Products Fund-Equity-Income Portfolio Scudder Variable Life Investment Fund-
Fidelity Investments Variable Insurance International Portfolio
Products Fund-Growth Portfolio TCI Portfolios, Inc.-TCI Growth
</TABLE>
b. OTHER
Investment transactions are accounted for on a trade-date basis and dividend
income is recorded on the ex-dividend date. The cost of investments sold is
determined by specific identification.
c. FEDERAL INCOME TAXES
The operations of Variable Annuity Account C form a part of, and are taxed with,
the total operations of Aetna Life Insurance and Annuity Company ("Company")
which is taxed as a life insurance company under the Internal Revenue Code of
1986, as amended.
d. ANNUITY RESERVES
Annuity reserves are computed for currently payable contracts according to the
Progressive Annuity, Individual Annuity Mortality, and Group Annuity Mortality
tables using various assumed interest rates not to exceed seven percent.
Charges to annuity reserves for mortality and expense risk experience are
reimbursed to the Company if the reserves required are less than originally
estimated. If additional reserves are required, the Company reimburses the
Account.
2. VALUATION PERIOD DEDUCTIONS
Deductions by the Account for mortality and expense risk charges are made in
accordance with the terms of the contracts and are paid to the Company.
S-9
<PAGE>
VARIABLE ANNUITY ACCOUNT C
NOTES TO FINANCIAL STATEMENTS (continued)
3. DIVIDEND INCOME
On an annual basis the Funds distribute substantially all of their taxable
income and realized capital gains to their shareholders. Distributions to the
Account are automatically reinvested in shares of the Funds. The Account's
proportionate share of the Funds' undistributed net investment income and
accumulated net realized gain (loss) on investments is included in net
unrealized loss in the Statement of Operations.
Dividends were received from the following Funds:
<TABLE>
<CAPTION>
DATE OF DIVIDEND SOURCE OF
FUND REINVESTMENT DIVIDENDS
---- ------------ ---------
<S> <C> <C>
Aetna Variable Fund July 20, 1994 Net investment income and
December 30, 1994 net realized gains
- -------------------------------------------------------------------------------------------------------------------
Aetna Income Shares July 20, 1994 Net investment income
December 30, 1994
- -------------------------------------------------------------------------------------------------------------------
Aetna Variable Encore Fund July 20, 1994 Net investment income
December 30, 1994
- -------------------------------------------------------------------------------------------------------------------
Aetna Investment Advisers Fund, Inc. July 20, 1994 Net investment income and
December 30, 1994 realized gains
- -------------------------------------------------------------------------------------------------------------------
Aetna GET Fund, Series B December 30, 1994 Net investment income and
net realized gains
- -------------------------------------------------------------------------------------------------------------------
Alger American Fund-Alger American Small May 9, 1994 Net realized gains
Capitalization Portfolio
- -------------------------------------------------------------------------------------------------------------------
Calvert Socially Responsible Series December 30, 1994 Net investment income
- -------------------------------------------------------------------------------------------------------------------
Fidelity Investments Variable Insurance Products September 2, 1994 Net investment income
Fund II-Asset Manager Portfolio
- -------------------------------------------------------------------------------------------------------------------
Fidelity Investments Variable Insurance Products June 7, 1994 Net investment income
Fund-Equity-Income Portfolio September 19, 1994
December 16, 1994
- -------------------------------------------------------------------------------------------------------------------
Franklin Government Securities Trust June 13, 1994 Net investment income
- -------------------------------------------------------------------------------------------------------------------
Janus Aspen Series-Aggressive Growth Portfolio June 29, 1994 Net investment income
December 29, 1994
- -------------------------------------------------------------------------------------------------------------------
Janus Aspen Series-Flexible Income Portfolio December 29, 1994 Net investment income
- -------------------------------------------------------------------------------------------------------------------
Lexington Emerging Markets Fund, Inc. December 29, 1994 Net investment income and
net realized gains
- -------------------------------------------------------------------------------------------------------------------
Lexington Natural Resources Trust December 29, 1994 Net investment income
- -------------------------------------------------------------------------------------------------------------------
Neuberger & Berman Advisers Management February 11, 1994 Net investment income and net
Trust-Growth Portfolio realized gains
- -------------------------------------------------------------------------------------------------------------------
Scudder Variable Life Investment Fund- February 24, 1994 Net investment income
International Portfolio
- -------------------------------------------------------------------------------------------------------------------
TCI Portfolios, Inc.-TCI Growth April 11, 1994 Net investment income
</TABLE>
4. PURCHASES AND SALES OF INVESTMENTS
The cost of purchases and proceeds from sales of investments other than short-
term investments for the year ended December 31, 1994 aggregated $688,544,469
and $293,968,699, respectively.
S-10
<PAGE>
CONSOLIDATED FINANCIAL STATEMENTS
AETNA LIFE INSURANCE AND ANNUITY COMPANY AND SUBSIDIARIES
INDEX
PAGE
----
Independent Auditors' Report .............................. F-2
Consolidated Financial Statements:
Consolidated Statements of Income for the Years Ended
December 31, 1994, 1993, and 1992 ...................... F-3
Consolidated Balance Sheets as of December 31, 1994
and 1993 ............................................... F-4
Consolidated Statements of Shareholder's Equity for the
Years Ended December 31, 1994, 1993 and 1992............ F-5
Consolidated Statements of Cash Flows for the Years
Ended December 31, 1994, 1993 and 1992.................. F-6
Notes to Consolidated Financial Statements................. F-7
F-1
<PAGE>
INDEPENDENT AUDITORS' REPORT
The Shareholder and Board of Directors
Aetna Life Insurance and Annuity Company:
We have audited the accompanying consolidated balance sheets of Aetna Life
Insurance and Annuity Company and Subsidiaries as of December 31, 1994 and
1993, and the related consolidated statements of income, changes in
shareholder's equity and cash flows for each of the years in the three-year
period ended December 31, 1994. These consolidated financial statements are
the responsibility of the Company's management. Our responsibility is to
express an opinion on these consolidated financial statements based on our
audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to
obtain reasonable assurance about whether the financial statements are free
of material misstatement. An audit includes examining, on a test basis,
evidence supporting the amounts and disclosures in the financial statements.
An audit also includes assessing the accounting principles used and
significant estimates made by management, as well as evaluating the overall
financial statement presentation. We believe that our audits provide a
reasonable basis for our opinion.
In our opinion, the consolidated financial statements referred to above
present fairly, in all material respects, the financial position of Aetna
Life Insurance and Annuity Company and Subsidiaries at December 31, 1994 and
1993, and the results of their operations and their cash flows for each of
the years in the three-year period ended December 31, 1994, in conformity
with generally accepted accounting principles.
As discussed in Note 1 to the consolidated financial statements, in 1993 the
Company changed its methods of accounting for certain investments in debt and
equity securities and reinsurance contracts. In 1992, the Company changed its
method of accounting for income taxes and postretirement benefits other than
pensions.
KPMG Peat Marwick LLP
Hartford, Connecticut
February 7, 1995
F-2
<PAGE>
AETNA LIFE INSURANCE AND ANNUITY COMPANY AND SUBSIDIARIES
(A WHOLLY OWNED SUBSIDIARY OF AETNA LIFE AND CASUALTY COMPANY)
CONSOLIDATED STATEMENTS OF INCOME
(MILLIONS)
<TABLE>
<CAPTION>
YEARS ENDED DECEMBER 31,
----------------------------
1994 1993 1992
-------- -------- --------
<S> <C> <C> <C>
Revenue:
Premiums........................................... $124.2 $ 82.1 $72.5
Charges assessed against policyholders............. 279.0 251.5 235.4
Net investment income.............................. 917.2 911.9 848.1
Net realized capital gains......................... 1.5 9.5 13.4
Other income....................................... 10.3 9.5 6.7
-------- -------- --------
Total revenue................................ 1,332.2 1,264.5 1,176.1
-------- -------- --------
Benefits and expenses:
Current and future benefits........................ 852.4 806.4 761.6
Operating expenses................................. 227.2 201.3 213.5
Amortization of deferred policy acquisition costs.. 36.1 37.7 32.9
-------- -------- --------
Total benefits and expenses................... 1,115.7 1,045.4 1,008.0
-------- -------- --------
Income before federal income taxes and cumulative
effect adjustments.................................. 216.5 219.1 168.1
Federal income taxes............................... 71.2 76.2 54.9
-------- -------- --------
Income before cumulative effect adjustments.......... 145.3 142.9 113.2
Cumulative effect adjustments, net of tax:
Change in accounting for income taxes............. -- -- 22.8
Change in accounting for postretirement benefits
other than pensions.............................. -- -- (13.2)
-------- -------- --------
Net income........................................... $145.3 $142.9 $122.8
-------- -------- --------
-------- -------- --------
</TABLE>
See Notes to Consolidated Financial Statements.
F-3
<PAGE>
AETNA LIFE INSURANCE AND ANNUITY COMPANY ANDSUBSIDIARIES
(A WHOLLY OWNED SUBSIDIARY OF AETNA LIFE AND CASUALTY COMPANY)
CONSOLIDATED BALANCE SHEETS
(MILLIONS)
<TABLE>
<CAPTION>
DECEMBER 31,
---------------------
ASSETS 1994 1993
--------- ---------
<S> <C> <C>
Investments:
Debt securities, available for sale:
(amortized cost: $10,577.8 and $9,783.9).......................... $10,191.4 $10,531.0
Equity securities, available for sale:
Non-redeemable preferred stock (cost: $43.3 and $38.3)............ 47.2 45.9
Investment in affiliated mutual funds (cost: $187.2 and $122.4)... 181.9 126.7
Short-term investments.............................................. 98.0 22.6
Mortgage loans...................................................... 9.9 10.1
Policy loans........................................................ 248.7 202.7
Limited partnership................................................. 24.4 --
--------- ---------
Total investments.............................................. 10,801.5 10,939.0
Cash and cash equivalents............................................. 623.3 536.1
Accrued investment income............................................. 142.2 124.7
Premiums due and other receivables.................................... 75.8 67.0
Deferred policy acquisition costs..................................... 1,172.0 1,061.0
Reinsurance loan to affiliate......................................... 690.3 711.0
Other assets.......................................................... 15.9 12.6
Separate Accounts assets 7,420.8 6,684.3
--------- ---------
Total assets $20,941.8 $20,135.7
--------- ---------
--------- ---------
LIABILITIES AND SHAREHOLDER'S EQUITY
Liabilities:
Future policy benefits.............................................. $2,968.1 $2,741.8
Unpaid claims and claim expenses.................................... 23.8 27.2
Policyholders' funds left with the Company ......................... 8,901.6 9,003.9
--------- ---------
Total insurance liabilities ................................... 11,893.5 11,698.7
Other liabilities .................................................. 302.1 229.7
Federal income taxes:
Current .......................................................... 3.4 40.6
Deferred ......................................................... 233.5 161.5
Separate Accounts liabilities....................................... 7,420.8 6,684.3
--------- ---------
Total liabilities.............................................. 19,853.3 18,889.0
--------- ---------
Shareholder's equity:
Common capital stock, par value $50 (100,000 shares
authorized; 55,000 shares issued and outstanding).................. 2.8 2.8
Paid-in capital..................................................... 407.6 407.6
Net unrealized capital gains (losses)............................... (189.0) 114.5
Retained earnings................................................... 867.1 721.8
--------- ---------
Total shareholder's equity.................................... 1,088.5 1,246.7
--------- ---------
Total liabilities and shareholder's equity..................... $20,941.8 $20,135.7
--------- ---------
--------- ---------
</TABLE>
See Notes to Consolidated Financial Statements.
F-4
<PAGE>
AETNA LIFE INSURANCE AND ANNUITY COMPANY AND SUBSIDIARIES
(A WHOLLY OWNED SUBSIDIARY OF AETNA LIFE AND CASUALTY COMPANY)
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDER'S EQUITY
(MILLIONS)
<TABLE>
<CAPTION>
YEARS ENDED DECEMBER 31,
-------------------------------
1994 1993 1992
-------- -------- -------
<S> <C> <C> <C>
Shareholder's equity, beginning of year........... $1,246.7 $990.1 $867.4
Net change in unrealized capital gains (losses)... (303.5) 113.7 (0.1)
Net income........................................ 145.3 142.9 122.8
-------- -------- -------
Shareholder's equity, end of year................. $1,088.5 $1,246.7 $990.1
-------- -------- -------
-------- -------- -------
</TABLE>
See Notes to Consolidated Financial Statements.
F-5
<PAGE>
AETNA LIFE INSURANCE AND ANNUITY COMPANY AND SUBSIDIARIES
(A WHOLLY OWNED SUBSIDIARY OF AETNA LIFE AND CASUALTY COMPANY)
CONSOLIDATED STATEMENTS OF CASH FLOWS
(MILLIONS)
<TABLE>
<CAPTION>
YEARS ENDED DECEMBER 31,
---------------------------------
1994 1993 1992
--------- --------- ---------
<S> <C> <C> <C>
Cash Flows from Operating Activities:
Net income $ 145.3 $ 142.9 $ 122.8
Cumulative effect adjustments -- -- (9.6)
Increase in accrued investment income (17.5) (11.1) (8.7)
(Increase) decrease in premiums due and other receivables... 1.3 (5.6) (19.9)
Increase in policy loans.................................... (46.0) (36.4) (32.4)
Increase in deferred policy acquisition costs............... (96.5) (60.5) (60.8)
Decrease in reinsurance loan to affiliate................... 27.8 31.8 37.8
Net increase in universal life account balances............. 164.7 126.4 130.8
Increase in other insurance reserve liabilities............. 65.7 86.1 20.5
Net increase in other liabilities and other assets.......... 53.9 7.0 20.2
Decrease in federal income taxes............................ (11.7) (3.7) (11.8)
Net accretion of discount on bonds.......................... (77.9) (88.1) (75.2)
Net realized capital gains.................................. (1.5) (9.5) (13.4)
Other, net.................................................. (1.0) 0.2 (0.2)
--------- --------- ---------
Net cash provided by operating activities................ 206.6 179.5 100.1
--------- --------- ---------
Cash Flows from Investing Activities:
Proceeds from sales of:
Debt securities available for sale....................... 3,593.8 473.9 543.3
Equity securities........................................ 93.1 89.6 50.6
Investment maturities and collections of:
Debt securities available for sale....................... 1,289.2 2,133.3 1,179.2
Short-term investments................................... 30.4 19.7 5.0
Cost of investment purchases in:
Debt securities.......................................... (5,621.4) (3,669.2) (2,612.2)
Equity securities........................................ (162.5) (157.5) (63.0)
Short-term investments................................... (106.1) (41.3) (5.0)
Limited partnership...................................... (25.0) -- --
--------- --------- ---------
Net cash used for investing activities................ (908.5) (1,151.5) (902.1)
--------- --------- ---------
Cash Flows from Financing Activities:
Deposits and interest credited for investment contracts..... 1,737.8 2,117.8 1,619.6
Withdrawals of investment contracts......................... (948.7) (1,000.3) (767.7)
--------- --------- ---------
Net cash provided by financing activities............. 789.1 1,117.5 851.9
--------- --------- ---------
Net increase in cash and cash equivalents....................... 87.2 145.5 49.9
Cash and cash equivalents, beginning of year.................... 536.1 390.6 340.7
--------- --------- ---------
Cash and cash equivalents, end of year.......................... $ 623.3 $ 536.1 $ 390.6
--------- --------- ---------
--------- --------- ---------
Supplemental cash flow information:
Income taxes paid, net...................................... $ 82.6 $ 79.9 $ 54.0
--------- --------- ---------
--------- --------- ---------
</TABLE>
See Notes to Consolidated Financial Statements.
F-6
<PAGE>
AETNA LIFE INSURANCE AND ANNUITY COMPANY AND SUBSIDIARIES
(A WHOLLY OWNED SUBSIDIARY OF AETNA LIFE AND CASUALTY COMPANY)
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
DECEMBER 31, 1994, 1993, AND 1992
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
BASIS OF PRESENTATION
The consolidated financial statements include Aetna Life Insurance and
Annuity Company and its wholly owned subsidiaries, Aetna Insurance Company of
America, Systematized Benefits Administrators, Inc., Aetna Private Capital,
Inc. and Aetna Investment Services, Inc. (collectively, the "Company"). Aetna
Life Insurance and Annuity Company is a wholly owned subsidiary of Aetna Life
and Casualty Company ("Aetna").
The consolidated financial statements have been prepared in conformity with
generally accepted accounting principles. Intercompany transactions have been
eliminated. Certain reclassifications have been made to 1993 and 1992
financial information to conform to the 1994 presentation.
The Company offers a wide range of life insurance products and annuity
contracts with variable and fixed accumulation and payout options. The
Company also provides investment advisory and other services to affiliated
mutual funds.
ACCOUNTING CHANGES
Accounting for Certain Investments in Debt and Equity Securities
On December 31, 1993, the Company adopted Financial Accounting Standard
("FAS") No. 115, Accounting for Certain Investments in Debt and Equity
Securities, which requires the classification of debt securities into three
categories: "held to maturity", which are carried at amortized cost;
"available for sale", which are carried at fair value with changes in fair
value recognized as a component of shareholder's equity; and "trading", which
are carried at fair value with immediate recognition in income of changes in
fair value.
Initial adoption of this standard resulted in a net increase of $106.8
million, net of taxes of $57.5 million, to net unrealized gains in
shareholder's equity. These amounts exclude gains and losses allocable to
experience-rated (including universal life) contractholders. Adoption of FAS
No. 115 did not have a material effect on deferred policy acquisition costs.
Accounting and Reporting for Reinsurance of Short-Duration and
Long-Duration Contracts
During 1993, the Company adopted FAS No. 113, Accounting and Reporting for
Reinsurance of Short-Duration and Long-Duration Contracts, retroactive to
January 1, 1993. Reinsurance recoverables (previously reported as a reduction
in insurance reserve liabilities) and reinsurance receivables and ceded
unearned premiums are included in premiums due and other receivables. The
adoption of FAS No. 113 did not have a material impact on the Company's 1993
Consolidated Financial Statements.
Accounting for Income Taxes
The Company adopted FAS No. 109, Accounting for Income Taxes, in 1992,
retroactive to January 1, 1992. A cumulative effect benefit of $22.8 million
related to the adoption of this standard is reflected in the 1992
Consolidated Statement of Income.
F-7
<PAGE>
AETNA LIFE INSURANCE AND ANNUITY COMPANY AND SUBSIDIARIES
(A WHOLLY OWNED SUBSIDIARY OF AETNA LIFE AND CASUALTY COMPANY)
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
Postretirement Benefits Other Than Pensions
FAS No. 106, Employers' Accounting for Postretirement Benefits Other Than
Pensions, required that employers accrue the cost and recognize the liability
for providing non-pension benefits to retired employees and agents. Aetna and
the Company implemented FAS No. 106 in 1992, retroactive to January 1, 1992
on the immediate recognition basis. The cumulative effect charge for all
Aetna employees was reflected in Aetna's 1992 Statement of Income. A
cumulative effect charge of $13.2 million, net of taxes of $7.1 million,
related to the adoption of this standard for Company agents is reflected in
the Company's 1992 Consolidated Statement of Income.
CASH AND CASH EQUIVALENTS
Cash and cash equivalents include cash on hand, money market instruments and
other debt issues with a maturity of ninety days or less when purchased.
INVESTMENTS
Debt Securities
At December 31, 1994 and 1993, all of the Company's debt securities are
classified as available for sale and carried at fair value. These securities
are written down (as realized losses) for other than temporary decline in
value. Unrealized gains and losses related to these securities, after
deducting amounts allocable to experience-rated contractholders and related
taxes, are reflected in shareholder's equity.
Fair values for debt securities are based on quoted market prices or dealer
quotations. Where quoted market prices or dealer quotations are not
available, fair values are measured utilizing quoted market prices for
similar securities or by using discounted cash flow methods. Cost for
mortgage-backed securities is adjusted for unamortized premiums and
discounts, which are amortized using the interest method over the estimated
remaining term of the securities, adjusted for anticipated prepayments.
Purchases and sales of debt securities are recorded on the trade date.
Equity Securities
Equity securities are classified as available for sale and carried at fair
value based on quoted market prices or dealer quotations. Equity securities
are written down (as realized losses) for other than temporary declines in
value. Unrealized gains and losses related to such securities are reflected
in shareholder's equity. Purchases and sales are recorded on the trade date.
The investment in affiliated mutual funds represents an investment in the
Aetna Series Fund, Inc., a retail mutual fund which has been seeded by the
Company, and is carried at fair value.
Mortgage Loans and Policy Loans
Mortgage loans and policy loans are carried at unpaid principal balances net
of valuation reserves, which approximates fair value, and are generally
secured. Purchases and sales of mortgage loans are recorded on the closing
date.
F-8
<PAGE>
AETNA LIFE INSURANCE AND ANNUITY COMPANY AND SUBSIDIARIES
(A WHOLLY OWNED SUBSIDIARY OF AETNA LIFE AND CASUALTY COMPANY)
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
Limited Partnership
The Company's limited partnership investment is carried at the amount
invested plus the Company's share of undistributed operating results and
unrealized gains (losses), which approximates fair value.
Short-Term Investments
Short-term investments, consisting primarily of money market instruments and
other debt issues purchased with an original maturity of over ninety days and
less than one year, are considered available for sale and are carried at fair
value, which approximates amortized cost.
DEFERRED POLICY ACQUISITION COSTS
Certain costs of acquiring insurance business have been deferred. These
costs, all of which vary with and are primarily related to the production
of new business, consist principally of commissions, certain expenses of
underwriting and issuing contracts and certain agency expenses. For fixed
ordinary life contracts, such costs are amortized over expected
premium-paying periods. For universal life and certain annuity contracts,
such costs are amortized in proportion to estimated gross profits and
adjusted to reflect actual gross profits. These costs are amortized over
twenty years for annuity pension contracts, and over the contract period for
universal life contracts. Deferred policy acquisition costs are written off
to the extent that it is determined that future policy premiums and
investment income or gross profits would not be adequate to cover related
losses and expenses.
INSURANCE RESERVE LIABILITIES
The Company's liabilities include reserves related to fixed ordinary life,
fixed universal life and fixed annuity contracts. Reserves for future policy
benefits for fixed ordinary life contracts are computed on the basis of
assumed investment yield, assumed mortality, withdrawals and expenses,
including a margin for adverse deviation, which generally vary by plan, year
of issue and policy duration. Reserve interest rates range from 2.25% to
10.50%. Assumed investment yield is based on the Company's experience.
Mortality and withdrawal rate assumptions are based on relevant Aetna
experience and are periodically reviewed against both industry standards and
experience.
Reserves for fixed universal life (included in Future Policy Benefits) and
fixed deferred annuity contracts (included in Policyholders' Funds Left With
the Company) are equal to the fund value. The fund value is equal to
cumulative deposits less charges plus credited interest thereon, without
reduction for possible future penalties assessed on premature withdrawal.
For guaranteed interest options, the interest credited ranged from 4.00% to
5.85% in 1994 and 4.00% to 7.68% in 1993. For all other fixed options, the
interest credited ranged from 5.00% to 7.50% in 1994 and 5.00% to 9.25% in
1993.
Reserves for fixed annuity contracts in the annuity period and for future
amounts due under settlement options are computed actuarially using the
Progressive Annuity Table (modified), the Annuity Table for 1949, the 1971
Individual Annuity Mortality Table, the 1971 Group Annuity Mortality Table,
the 1983 Individual Annuity Mortality Table and the 1983 Group Annuity
Mortality Table, at assumed interest rates ranging from 3.5% to 9.5%.
Reserves relating to contracts with life contingencies are included in Future
Policy Benefits. For other contracts, the reserves are reflected in
Policyholders' Funds Left With the Company.
F-9
<PAGE>
AETNA LIFE INSURANCE AND ANNUITY COMPANY AND SUBSIDIARIES
(A WHOLLY OWNED SUBSIDIARY OF AETNA LIFE AND CASUALTY COMPANY)
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
Unpaid claims for all lines of insurance include benefits for
reported losses and estimates of benefits for losses incurred but
not reported.
PREMIUMS, CHARGES ASSESSED AGAINST POLICYHOLDERS, BENEFITS AND EXPENSES
Premiums are recorded as revenue when due for fixed ordinary life contracts.
Charges assessed against policyholders' funds for cost of insurance,
surrender charges, actuarial margin and other fees are recorded as revenue
for universal life and certain annuity contracts. Policy benefits and
expenses are recorded in relation to the associated premiums or gross profit
so as to result in recognition of profits over the expected lives of the
contracts.
SEPARATE ACCOUNTS
Assets held under variable universal life, variable life and variable annuity
contracts are segregated in Separate Accounts and are invested, as designated
by the contractholder or participant under a contract, in shares of Aetna
Variable Fund, Aetna Income Shares, Aetna Variable Encore Fund, Aetna
Investment Advisers Fund, Inc., Aetna GET Fund, or The Aetna Series Fund
Inc., which are managed by the Company or other selected mutual funds not
managed by the Company.
Separate Accounts assets and liabilities are carried at fair value except for
those relating to a guaranteed interest option which is offered through a
Separate Account. The assets of the Separate Account supporting the
guaranteed interest option are carried at an amortized cost of $149.7 million
for 1994 (fair value $146.3 million) and $31.2 million for 1993 (fair value
$33.3 million), since the Company bears the investment risk where the
contract is held to maturity. Reserves relating to the guaranteed interest
option are maintained at fund value and reflect interest credited at rates
ranging from 4.5% to 8.38% in 1994 and from 4% to 9.45% in 1993. Separate
Accounts assets and liabilities are shown as separate captions in the
Consolidated Balance Sheets. Deposits, investment income and net realized and
unrealized capital gains (losses) of the Separate Accounts are not reflected
in the Consolidated Statements of Income (with the exception of realized
capital gains (losses) on the sale of assets supporting the guaranteed
interest option). The Consolidated Statements of Cash Flows do not reflect
investment activity of the Separate Accounts.
FEDERAL INCOME TAXES
The Company is included in the consolidated federal income tax return of
Aetna. The Company is taxed at regular corporate rates after adjusting income
reported for financial statement purposes for certain items. Deferred income
tax benefits result from changes during the year in cumulative temporary
differences between the tax basis and book basis of assets and liabilities.
F-10
<PAGE>
AETNA LIFE INSURANCE AND ANNUITY COMPANY AND SUBSIDIARIES
(A WHOLLY OWNED SUBSIDIARY OF AETNA LIFE AND CASUALTY COMPANY)
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
2. INVESTMENTS
Investments in debt securities available for sale as of December 31, 1994
were as follows:
<TABLE>
<CAPTION>
GROSS GROSS
AMORTIZED UNREALIZED UNREALIZED FAIR
COST GAINS LOSSES VALUE
--------- ---------- ---------- ---------
(MILLIONS)
<S> <C> <C> <C> <C>
U.S. Treasury securities and obligations of
U.S government agencies and corporations.... $ 1,396.1 $ 2.0 $ 84.2 $ 1,313.9
Obligations of states and political
subdivisions................................ 37.9 1.2 -- 39.1
U.S. Corporate securities:
Financial................................. 2,216.9 3.8 109.4 2,111.3
Utilities................................. 100.1 -- 7.9 92.2
Other..................................... 1,344.3 6.0 67.9 1,282.4
--------- ------ ------ ---------
Total U.S. Corporate securities............. 3,661.3 9.8 185.2 3,485.9
Foreign securities:
Government................................ 434.4 1.2 33.9 401.7
Financial................................. 368.2 1.1 23.0 346.3
Utilities................................. 204.4 2.5 9.5 197.4
Other..................................... 46.3 0.8 1.5 45.6
--------- ------ ------ ---------
Total Foreign securities.................... 1,053.3 5.6 67.9 991.0
Residential mortgage-backed securities:
Residential pass-throughs................. 627.1 81.5 5.0 703.6
Residential CMOs.......................... 2,671.0 32.9 139.4 2,564.5
--------- ------ ------ ---------
Total Residential mortgage-backed
securities.................................. 3,298.1 114.4 144.4 3,268.1
Commercial/Multifamily mortgage-backed
securities.................................. 435.0 0.2 21.3 413.9
--------- ------ ------ ---------
Total Mortgage-backed securities.......... 3,733.1 114.6 165.7 3,682.0
Other loan-backed securities.................. 696.1 0.2 16.8 679.5
--------- ------ ------ ---------
Total debt securities available for sale...... $10,577.8 $133.4 $519.8 $10,191.4
--------- ------ ------ ---------
--------- ------ ------ ---------
</TABLE>
F-11
<PAGE>
AETNA LIFE INSURANCE AND ANNUITY COMPANY AND SUBSIDIARIES
(A WHOLLY OWNED SUBSIDIARY OF AETNA LIFE AND CASUALTY COMPANY)
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
Investments in debt securities available for sale as of December 31,
1993 were as follows:
<TABLE>
<CAPTION>
GROSS GROSS
AMORTIZED UNREALIZED UNREALIZED FAIR
COST GAINS LOSSES VALUE
----------- ---------- ---------- -----
(millions)
<S> <C> <C> <C> <C>
U.S. Treasury securities and obligations of U.S government
agencies and corporations............................................. $ 827.2 $ 19.4 $ 6.6 $ 840.4
Obligations of states and political subdivisions........................ 0.5 -- -- 0.5
U.S. Corporate securities:
Financial........................................................... 983.3 49.2 0.7 1,031.8
Utilities........................................................... 141.2 12.4 -- 153.6
Other............................................................... 704.3 51.6 2.3 753.6
--------- -------- -------- --------
Total U.S. Corporate securities..................................... 1,828.8 113.2 3.0 1,939.0
Foreign securities:
Government.......................................................... 289.1 31.7 0.5 320.3
Financial........................................................... 365.8 18.5 0.9 383.4
Utilities........................................................... 206.2 28.9 0.1 235.0
Other............................................................... 30.4 1.3 0.8 30.9
--------- -------- -------- --------
Total Foreign securities............................................ 891.5 80.4 2.3 969.6
Residential mortgage-backed securities:
Residential pass-throughs........................................... 1,125.0 218.1 1.7 1,341.4
Residential CMOs.................................................... 4,868.7 318.1 1.1 5,185.7
--------- -------- -------- --------
Total Residential mortgage-backed securities........................ 5,993.7 536.2 2.8 6,527.1
Commercial/Multifamily mortgage-backed securities....................... 193.0 13.4 0.8 205.6
--------- -------- -------- --------
Total Mortgage-backed securities.................................... 6,186.7 549.6 3.6 6,732.7
Other loan-backed securities............................................ 49.2 0.2 0.2 49.2
--------- -------- -------- --------
Total debt securities available for sale................................ $ 9,783.9 $ 762.8 $ 15.7 $10,531.0
--------- -------- -------- --------
--------- -------- -------- --------
</TABLE>
At December 31, 1994 and 1993, net unrealized appreciation
(depreciation) of $(386.4) million and $747.1 million,
respectively, on available for sale debt securities included
$(308.6) million and $582.8 million, respectively, related to
experience-rated contractholders, which were not included in
shareholder's equity.
F-12
<PAGE>
AETNA LIFE INSURANCE AND ANNUITY COMPANY AND SUBSIDIARIES
(A WHOLLY OWNED SUBSIDIARY OF AETNA LIFE AND CASUALTY COMPANY)
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
The amortized cost and fair value of debt securities for the year
ended December 31, 1994 are shown below by contractual maturity.
Actual maturities may differ from contractual maturities because
securities may be restructured, called, or prepaid.
<TABLE>
<CAPTION>
AMORTIZED FAIR
COST VALUE
----------- ---------
(millions)
<S> <C> <C>
Due to mature:
One year or less..................... $ 103.9 $ 103.5
After one year through five years.... 1,965.6 1,920.0
After five years through ten years... 2,371.3 2,207.0
After ten years...................... 1,707.8 1,599.4
Mortgage-backed securities........... 3,733.1 3,682.0
Other loan-backed securities......... 696.1 679.5
--------- ---------
Total............................ $10,577.8 $10,191.4
--------- ---------
--------- ---------
</TABLE>
At December 31, 1994 and 1993, debt securities carried at $7.0 million
and $7.3 million, respectively, were on deposit as required by
regulatory authorities.
The valuation reserve for mortgage loans was $3.1 million and
$4.2 million at December 31, 1994 and 1993, respectively. The
carrying value of non-income producing investments was $0.2 million
and $34.3 million at December 31, 1994 and 1993, respectively.
Investments in a single issuer, other than obligations of the
U.S. government, with a carrying value in excess of 10% of the
Company's shareholder's equity at December 31, 1994 are as follows:
<TABLE>
<CAPTION>
AMORTIZED FAIR
DEBT SECURITIES COST VALUE
- --------------- ----------- ---------
(millions)
<S> <C> <C>
General Electric Capital
Corporation........................... $ 264.9 $252.1
General Motors Corporation.............. 167.8 161.7
Society National Bank................... 152.8 143.7
Ford Motor Company...................... 144.7 142.3
Associates Corporation of North
America............................... 132.9 131.1
First Deposit Master Trust 1994-1A...... 114.9 112.1
</TABLE>
The portfolio of debt securities at December 31, 1994 and 1993
included $318 million and $329 million, respectively, (3% of the
debt securities for both years) of investments that are
considered "below investment grade". "Below investment grade"
securities are defined to be securities that carry a rating below
BBB-/Baa3, by Standard & Poors/Moody's Investor Services,
respectively. Of these below investment grade assets, $32 million
and $39 million, at December 31, 1994 and 1993, respectively,
were investments that were purchased at investment
grade, but whose ratings have since been downgraded.
Included in residential mortgage-back securities are
collateralized mortgage obligations ("CMOs") with carrying values
of $2.6 billion and $5.2 billion at December 31, 1994 and
1993, respectively. The $2.6 billion decline in
F-13
<PAGE>
AETNA LIFE INSURANCE AND ANNUITY COMPANY AND SUBSIDIARIES
(A WHOLLY OWNED SUBSIDIARY OF AETNA LIFE AND CASUALTY COMPANY)
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
CMOs from December 31, 1993 to December 31, 1994 was related primarily
to sales and principal repayments. CMO sales of $1.6 billion resulted in
net realized capital gains of $35 million of which $23 million was
allocated to experience-rated contracts. The Company's CMO exposure was
reduced as a result of changes in their risk and return characteristics and
to better diversify the risk profile of the Company's assets. The
principal risks inherent in holding CMOs are prepayment and extension
risks related to dramatic decreases and increases in interest rates
whereby the CMOs would be subject to repayments of principal earlier or
later than originally anticipated. At December 31, 1994 and 1993,
approximately 85% and 93%, respectively, of the Company's CMO holdings
consisted of sequential and planned amortization class ("PAC") debt
securities which are subject to less prepayment and extension risk than
other CMO instruments. At December 31, 1994 and 1993, approximately 82% of
the Company's CMO holdings were collateralized by residential mortgage
loans, on which the timely payment of principal and interest was backed by
specified government agencies (e.g., GNMA, FNMA, FHLMC).
If due to declining interest rates, principal was to be repaid earlier
than originally anticipated, the Company could be affected by a
decrease in investment income due to the reinvestment of these
funds at a lower interest rate. Such prepayments may result in a duration
mismatch between assets and liabilities which could be corrected as cash
from prepayments could be reinvested at an appropriate duration to
adjust the mismatch.
Conversely, if due to increasing interest rates, principal was to be repaid
slower than originally anticipated, the Company could be affected by a
decrease in cash flow which reduces the ability to reinvest expected
principal repayments at higher interest rates. Such slower payments may
result in a duration mismatch between assets and liabilities which could
be corrected as available cash flow could be reinvested at an
appropriate duration to adjust the mismatch.
At December 31, 1994 and 1993, 4% and 3%, respectively, of the Company's
CMO holdings consisted of interest-only strips (IOs) or principal-only
strips (POs). IOs receive payments of interest and POs receive payments
of principal on the underlying pool of mortgages. The risk inherent in
holding POs is extension risk related to dramatic increases in interest
rates whereby the future payments due on POs could be repaid much
slower than originally anticipated. The extension risks inherent in
holding POs, PACs and sequentials was mitigated by purchasing offsetting
positions in IOs. During dramatic increases in interest rates, IOs would
generate more future payments than originally anticipated.
The risk inherent in holding IOs is prepayment risk related to dramatic
decreases in interest rates whereby future IO cash flows could be much less
than originally anticipated and in some cases could be less than the
original cost of the IO. The risks inherent in IOs are mitigated by
holding offsetting positions in PO's, PACs, and sequentials. During
dramatic decreases in interest rates POs, PACs and sequentials would
generate future cash flows much quicker than originally anticipated.
In 1993, due to declining interest rates and prepayments on the underlying
pool of mortgages, the amortized cost on IO's was written down by
$85.4 million. IO writedowns of $4.7 million, net of $80.7 million allocated
to experience-rated contracts, were reflected in 1993 net realized capital
gains (losses). In 1994, due to increasing interest rates, unrealized gains
on IO's increased from $0.5 million at December 31, 1993 to $17.8 million at
December 31, 1994. Conversely, unrealized gains on POs decreased from
$36.7 million at December 31, 1993 to $5.3 million at December 31, 1994.
1994 net realized gains (losses) included net gains of $10.0 million as a
result of sales of IOs and POs (including amounts allocated to
experience-rated contractholders).
F-14
<PAGE>
AETNA LIFE INSURANCE AND ANNUITY COMPANY AND SUBSIDIARIES
(A WHOLLY OWNED SUBSIDIARY OF AETNA LIFE AND CASUALTY COMPANY)
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
The Company did not use derivative instruments (ie.,futures,
forward contracts, interest swaps, etc.)for hedging or any other
purposes in 1994 or 1993.
The Company does hold investments in certain debt and equity
securities with derivative characteristics (ie., including the
fact that their market value is at least partially determined by,
among other things, levels of or changes in interest rates,
prepayment rates, equity markets or credit ratings/spreads).
The amortized cost and fair value of these securities, included
in the $10.8 billion investment portfolio, as of December 31,
1994 was as follows:
<TABLE>
<CAPTION>
AMORTIZED FAIR
COST VALUE
--------- ---------
<S> <C> <C>
Collateralized mortgage obligations
(including interest-only and principal-only strips)..... $2,671.0 $2,564.5
Treasury and agency strips:
Principal............................................. 20.7 21.6
Interest.............................................. 104.2 90.2
Mandatorily convertible preferred stock................... 12.1 11.6
</TABLE>
Investments in available for sale equity securities were as follows:
<TABLE>
<CAPTION>
GROSS GROSS
UNREALIZED UNREALIZED
COST GAINS LOSSES VALUE
------ ---------- ---------- ------
(millions)
<S> <C> <C> <C> <C>
1994
Equity Securities....................... $230.5 $ 6.5 $7.9 $229.1
------ ----- ---- ------
1993
Equity Securities....................... $160.7 $12.0 $0.1 $172.6
------ ----- ---- ------
</TABLE>
At December 31, 1994 and 1993, 91% of outstanding policy loans
had fixed interest rates. The fixed interest rates for annuity
policy loans ranged from 1% to 3% for individual annuity policies
in both 1994 and 1993. The fixed interest rates for individual
life policy loans ranged from 5% to 8% in 1994 and 6% to 8% in
1993. The remaining outstanding policy loans had variable
interest rates averaging 8% in 1994 and 1993. Investment income
from policy loans was $11.5 million, $10.8 million and
$9.5 million in 1994, 1993 and 1992, respectively.
OFF-BALANCE SHEET FINANCIAL INSTRUMENTS
At December 31, 1993, the Company had $149.0 million in
outstanding forward commitments to purchase mortgage-backed
securities at a specified future date and at a specified price or
yield. These instruments involve elements of market risk whereby
future changes in market prices may make a financial instrument
less valuable. However, the difference between the fair value at
which the commitments can be settled, and the contractual value
of these securities, was immaterial at December 31, 1993. There
were no outstanding forward commitments at December 31, 1994.
There were no material concentrations of off-balance sheet
financial instruments at December 31, 1994 and 1993.
F-15
<PAGE>
AETNA LIFE INSURANCE AND ANNUITY COMPANY AND SUBSIDIARIES
(A WHOLLY OWNED SUBSIDIARY OF AETNA LIFE AND CASUALTY COMPANY)
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
3. CAPITAL GAINS AND LOSSES ON INVESTMENT OPERATIONS
Realized capital gains or losses are the difference between
proceeds received from investments sold or prepaid, and amortized
cost. Net realized capital gains as reflected in the
Consolidated Statements of Income are after deductions for net
realized capital gains (losses) allocated to experience-rated
contracts of $(29.1) million, $(54.8) million and $36.1 million
for the years ended December 31, 1994, 1993, and 1992,
respectively. Net realized capital gains (losses) allocated to
experience-rated contracts are deferred and subsequently
reflected in credited rates on an amortized basis. Net
unamortized gains (losses), reflected as a component of
Policyholders' Funds Left With the Company, were $(50.7) million
and $(16.5) million at the end of December 31, 1994 and 1993,
respectively.
Changes to the mortgage loan valuation reserve and writedowns on
debt securities are included in net realized capital gains
(losses) and amounted to $1.1 million and $(98.5) million, of
which $0.8 million and $(91.5) million were allocable to
experience-rated contractholders, for the years ended December 31,
1994 and 1993, respectively. There were no changes to the
valuation reserve or writedowns in 1992. The 1993 losses were
primarily related to writedowns of interest-only mortgage-backed
securities to their fair value.
Net realized capital gains (losses) on investments, net of
amounts allocated to experience-rated contracts, were as follows:
<TABLE>
<CAPTION>
1994 1993 1992
---- ---- ----
(millions)
<S> <C> <C> <C>
Debt securities..................... $ 1.0 $9.6 $12.9
Equity securities................... 0.2 .1 0.5
Mortgage loans...................... 0.3 (0.2) --
----- ---- -----
Pretax realized capital gains....... $ 1.5 $9.5 $13.4
----- ---- -----
----- ---- -----
After-tax realized capital
gains......................... $ 1.0 $6.2 $ 8.8
----- ---- -----
----- ---- -----
</TABLE>
Gross gains of $26.6 million, $33.3 million and $13.9 million and
gross losses of $25.6 million, $23.7 million and $1.0 million
were realized from the sales of investments in debt securities in
1994, 1993 and 1992, respectively.
Changes in unrealized capital gains (losses), excluding changes
in unrealized capital gains (losses) related to experience-rated
contracts, for the years ended December 31, were as follows:
<TABLE>
<CAPTION>
1994 1993 1992
---- ---- ----
(millions)
<S> <C> <C> <C>
Debt securities...................... $(242.1) $ 164.3 $ --
Equity securities.................... (13.3) 10.6 (0.1)
Limited partnership.................. (1.8) -- --
------- ------- ----
(257.2) 174.9 (0.1)
Deferred federal income taxes
(See Note 6)....................... 46.3 62.1 --
------- ------- ----
------- ------- ----
Net change in unrealized capital
gains (losses)..................... $(303.5) $ 113.7 $(0.1)
------- ------- ----
------- ------- ----
</TABLE>
The net change in unrealized capital gains (losses) on debt
securities in 1994 and 1993 resulted from the adoption of FAS
No. 115. For the year ended December 31, 1992, debt securities were
carried at amortized cost. The unrecorded net appreciation for
debt securities carried at amortized cost (including amounts
allocable to experience-rated contracts) amounted to
$612.4 million at December 31, 1992.
F-16
<PAGE>
AETNA LIFE INSURANCE AND ANNUITY COMPANY AND SUBSIDIARIES
(A WHOLLY OWNED SUBSIDIARY OF AETNA LIFE AND CASUALTY COMPANY)
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
Net unrealized capital gains (losses) allocable to experience-rated
contracts of $(308.6)million and $582.8 million at December 31, 1994
and 1993, respectively, are not included in shareholder's equity. These
amounts are reflected on the Consolidated Balance Sheet in policyholders'
funds left with the Company.
Shareholder's equity included the following unrealized capital gains
(losses), which are net of amounts allocable to experience-rated
contractholders, at December 31:
<TABLE>
<CAPTION>
1994 1993 1992
---- ---- ----
(millions)
<S> <C> <C> <C>
Debt securities
Gross unrealized capital gains...... $ 27.4 $164.3 $ --
Gross unrealized capital losses..... (105.2) -- --
------- ------ -----
(77.8) 164.3 --
Equity securities
Gross unrealized capital gains....... 6.5 12.0 2.0
Gross unrealized capital losses...... (7.9) (0.1) (0.7)
------- ------ -----
(1.4) 11.9 1.3
Limited partnership
Gross unrealized capital gains....... -- -- --
Gross unrealized capital losses...... (1.8) -- --
------- ------ -----
(1.8) -- --
Deferred federal income taxes
(See Note 6)........................... 108.0 61.7 0.5
------- ------ -----
------- ------ -----
Net change in unrealized capital
gains (losses)......................... $(189.0) $114.5 $ 0.8
------- ------ -----
------- ------ -----
</TABLE>
4. NET INVESTMENT INCOME
Sources of net investment income were as follows:
<TABLE>
<CAPTION>
1994 1993 1992
---- ---- ----
(millions)
<S> <C> <C> <C>
Debt securities....................... $823.9 $828.0 $763.7
Preferred stock....................... 3.9 2.3 2.8
Investment in affiliated mutual
funds............................... 5.2 2.9 3.2
Mortgage loans........................ 1.4 1.5 1.8
Policy loans.......................... 11.5 10.8 9.5
Reinsurance loan to affiliate......... 51.5 53.3 56.7
Cash equivalents...................... 29.5 16.8 16.6
Other................................. 6.7 7.7 6.4
------ ------ ------
Gross investment income............... 933.6 923.3 860.7
Less investment expenses.............. (16.4) (11.4) (12.6)
------ ------ ------
Net investment income................. $917.2 $911.9 $848.1
------ ------ ------
------ ------ ------
</TABLE>
F-17
<PAGE>
AETNA LIFE INSURANCE AND ANNUITY COMPANY AND SUBSIDIARIES
(A WHOLLY OWNED SUBSIDIARY OF AETNA LIFE AND CASUALTY COMPANY)
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
Net investment income includes amounts allocable to experience-rated
contractholders of $677.1 million, $661.3 million and $604.0 million
for the years ended December 31, 1994, 1993 and 1992, respectively.
Interest credited to contractholders is included in Current and
Future Benefits.
5. DIVIDEND RESTRICTIONS AND SHAREHOLDER'S EQUITY
The amount of dividends that may be paid to the shareholder in
1995 without prior approval by the Insurance Commissioner of the
State of Connecticut is $70.9 million.
The Insurance Department of the State of Connecticut (the
"Department") recognizes as net income and shareholder's equity
those amounts determined in conformity with statutory accounting
practices prescribed or permitted by the Department, which differ
in certain respects from generally accepted accounting
principles. Statutory net income was $70.9 million, $77.6 million
and $62.5 million for the years ended December 31, 1994, 1993 and
1992, respectively. Statutory shareholder's equity was $615.0 million
and $574.4 million as of December 31, 1994 and 1993, respectively.
As of December 31, 1994, the Company does not utilize any
statutory accounting practices which are not prescribed by
insurance regulators that, individually or in the aggregate,
materially affect statutory shareholder's equity.
6. FEDERAL INCOME TAXES
The Company is included in the consolidated federal income tax
return of Aetna. Aetna allocates to each member an amount
approximating the tax it would have incurred were it not a member
of the consolidated group, and credits the member for the use of
its tax saving attributes in the consolidated return.
As discussed in Note 1, the Company adopted FAS No. 109 as of
January 1, 1992 resulting in a cumulative effect benefit of $22.8 million.
In August 1993, the Omnibus Budget Reconciliation Act of 1993
(OBRA) was enacted which resulted in an increase in the federal
corporate tax rate from 34% to 35% retroactive to January 1,
1993. The enactment of OBRA resulted in an increase in the
deferred tax liability of $3.4 million at date of enactment,
which is included in the 1993 deferred tax expense.
Components of income tax expense (benefits) were as follows:
<TABLE>
<CAPTION>
1994 1993 1992
---- ---- ----
(millions)
<S> <C> <C> <C>
Current taxes (benefits):
Income from operations................. $ 78.7 $ 87.1 $ 68.0
Net realized capital gains............. (33.2) 18.1 18.1
------ ------ ------
45.5 105.2 86.1
------ ------ ------
Deferred taxes (benefits):
Income from operations................. (8.0) (14.2) (17.7)
Net realized capital gains............. 33.7 (14.8) (13.5)
------ ------ ------
25.7 (29.0) (31.2)
------ ------ ------
Total.............................. $ 71.2 $ 76.2 $ 54.9
------ ------ ------
------ ------ ------
</TABLE>
F-18
<PAGE>
AETNA LIFE INSURANCE AND ANNUITY COMPANY AND SUBSIDIARIES
(A WHOLLY OWNED SUBSIDIARY OF AETNA LIFE AND CASUALTY COMPANY)
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
Income tax expense was different from the amount computed by
applying the federal income tax rate to income before federal
income taxes for the following reasons:
<TABLE>
<CAPTION>
1994 1993 1992
---- ---- ----
(millions)
<S> <C> <C> <C>
Income before federal income taxes........ $216.5 $219.1 $168.1
Tax rate.................................. 35% 35% 34%
------ ------ ------
Application of the tax rate............... 75.8 76.7 57.2
------ ------ ------
Tax effect of:
Excludable dividends.................. (8.6) (8.7) (6.4)
Tax reserve adjustments............... 2.9 4.7 5.1
Reinsurance transaction............... 1.9 (0.2) (0.5)
Tax rate change on deferred
liabilities......................... -- 3.7 --
Other, net............................ (0.8) -- (0.5)
------ ------ ------
Income tax expense................ $ 71.2 $ 76.2 $ 54.9
------ ------ ------
</TABLE>
The tax effects of temporary differences that give rise to
deferred tax assets and deferred tax liabilities under FAS No. 109
at December 31, 1994 and 1993 are presented below:
<TABLE>
<CAPTION>
1994 1993
---- ----
(millions)
<S> <C> <C>
Deferred tax assets:
Insurance reserve................................. $211.5 $195.4
Net unrealized capital losses..................... 136.3 --
Investment losses not currently deductible........ 15.5 31.2
Postretirement benefits other than pensions....... 8.4 8.6
Impairment reserves............................... -- 7.9
Other............................................. 28.3 19.3
------ ------
Total gross assets.................................... 400.0 262.4
Less valuation allowance.............................. 136.3 --
------ ------
Deferred tax assets net of valuation.............. 263.7 262.4
Deferred tax liabilities:
Deferred policy acquisition costs................. 385.2 355.2
Unrealized losses allocable to experience-rated
contracts....................................... 108.0 --
Market discount................................... 3.6 5.4
Net unrealized capital gains...................... -- 61.7
Other............................................. 0.4 1.6
------ ------
------ ------
Total gross liabilities....................... 497.2 423.9
------ ------
------ ------
Net deferred tax liability.................... $233.5 $161.5
------ ------
------ ------
</TABLE>
Net unrealized capital gains and losses are presented in
shareholder's equity net of deferred taxes. At December 31,
1994, $81.0 million of net unrealized capital losses were
reflected in shareholder's equity without deferred tax benefits.
For federal income tax purposes, capital losses are deductible
only against capital gains in the year of sale or during the
carryback and carryforward periods (three and five years,
respectively). Due to the expected
F-19
<PAGE>
AETNA LIFE INSURANCE AND ANNUITY COMPANY AND SUBSIDIARIES
(A WHOLLY OWNED SUBSIDIARY OF AETNA LIFE AND CASUALTY COMPANY)
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
full utilization of capital gains in the carryback period and the
uncertainty of future capital gains, a valuation allowance of
$28.3 million related to the net unrealized capital losses
has been reflected in shareholder's equity. In
addition, $308.6 million of net unrealized capital losses related
to experience-rated contracts are not reflected in shareholder's
equity since such losses, if realized, are allocable to
contractholders. However, the potential loss of tax benefits on
such losses is the risk of the Company and therefore would
adversely affect the Company rather than the contractholder.
Accordingly, an additional valuation allowance of $108.0 million
has been reflected in shareholder's equity as of December 31,
1994. Any reversals of the valuation allowance are contingent
upon the recognition of future capital gains in the Company's
federal income tax return or a change in circumstances which
causes the recognition of the benefits to become more likely than
not. Non-recognition of the deferred tax benefits on net
unrealized losses described above had no impact on net income for
1994, but has the potential to adversely affect future results if
such losses are realized.
The "Policyholders' Surplus Account," which arose under prior tax
law, is generally that portion of a life insurance company's
statutory income that has not been subject to taxation. As of
December 31, 1983, no further additions could be made to the
Policyholders' Surplus Account for tax return purposes under the
Deficit Reduction Act of 1984. The balance in such account was
approximately $17.2 million at December 31, 1994. This amount
would be taxed only under certain conditions. No income taxes
have been provided on this amount since management believes the
conditions under which such taxes would become payable are remote.
The Internal Revenue Service ("Service") has completed
examinations of the consolidated federal income tax returns of
Aetna through 1986. Discussions are being held with the Service
with respect to proposed adjustments. However, management
believes there are adequate defenses against, or sufficient
reserves to provide for, such adjustments. The Service has
commenced its examinations for the years 1987 through 1990.
7. BENEFIT PLANS
Employee Pension Plans - The Company, in conjunction with Aetna,
has non-contributory defined benefit pension plans covering
substantially all employees. The plans provide pension benefits
based on years of service and average annual compensation
(measured over sixty consecutive months of highest earnings in a
120 month period). Contributions are determined using the Entry
Age Normal Cost Method and, for qualified plans subject to ERISA
requirements, are limited to the amounts that are currently
deductible for tax reporting purposes. The accumulated benefit
obligation and plan assets are recorded by Aetna. The
accumulated plan assets exceed accumulated plan benefits. There
has been no funding to the plan for the years 1992 through 1994,
and therefore, no expense has been recorded by the Company.
Agent Pension Plans - The Company, in conjunction with Aetna, has
a non-qualified pension plan covering certain agents. The plan
provides pension benefits based on annual commission earnings.
The accumulated plan assets exceed accumulated plan benefits.
There has been no funding to the plan for the years 1992 through
1994, and therefore, no expense has been recorded by the Company.
Employee Postretirement Benefits - In addition to providing
pension benefits, Aetna also provides certain postretirement
health care and life insurance benefits, subject to certain caps,
for retired employees. Medical and dental benefits are offered
to all full-time employees retiring at age 50 with at least
15 years of service or at age 65 with at least 10 years of service.
Retirees are required to contribute to the plans based on their
years of service with Aetna.
F-20
<PAGE>
AETNA LIFE INSURANCE AND ANNUITY COMPANY AND SUBSIDIARIES
(A WHOLLY OWNED SUBSIDIARY OF AETNA LIFE AND CASUALTY COMPANY)
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
Aetna implemented FAS No. 106, Employers' Accounting for
Postretirement Benefits Other Than Pensions in 1992 on the
immediate recognition basis. The cumulative effect charge for
all Aetna employees was reflected in Aetna's 1992 Statement of
Income. Prior to the adoption of FAS No. 106, the cost of
postretirement benefits was charged to operations as payments
were made. The accumulated benefit obligation and plan assets
are recorded by Aetna. Accumulated postretirement benefits
exceed plan assets.
The cost to the Company associated with the Aetna postretirement
plans for 1994, 1993 and 1992 were $1.0 million, $0.8 million and
$0.8 million, respectively.
Agent Postretirement Benefits - The Company, in conjunction with
Aetna, also provides certain postemployment health care and life
insurance benefits for certain agents. The impact of recognizing
the liability for agent costs was a cumulative effect adjustment
of $13.2 million (net of deferred taxes of $6.8 million) and is
reported in the 1992 Consolidated Statement of Income.
The cost to the Company associated to the agents' postretirement
plans for 1994, 1993 and 1992 were $0.7 million, $0.6 million and
$0.7 million, respectively.
Incentive Savings Plan - Substantially all employees are eligible
to participate in a savings plan under which designated
contributions, which may be invested in common stock of Aetna or
certain other investments, are matched, up to 5% of compensation,
by Aetna. Pretax charges to operations for the incentive savings
plan were $3.3 million, $3.1 million and $2.8 million in 1994,
1993 and 1992, respectively.
Stock Plans - Aetna has a stock incentive plan that provides for
stock options and deferred contingent common stock or cash awards
to certain key employees. Aetna also has a stock option plan
under which executive and middle management employees of Aetna
may be granted options to purchase common stock of Aetna at the
market price on the date of grant or, in connection with certain
business combinations, may be granted options to purchase common
stock on different terms. The cost to the Company associated to
the Aetna stock plans for 1994 and 1993 was $2.3 million,
$0.4 million, respectively. The cost for 1992 was immaterial.
8. RELATED PARTY TRANSACTIONS
The Company is compensated by the Separate Accounts for bearing
mortality and expense risks pertaining to variable life and
annuity contracts. Under the insurance contracts, the Separate
Accounts pay the Company a daily fee which, on an annual basis,
ranges, depending on the product, from .70% to 1.80% of their
average daily net assets. The Company also receives fees from
the variable life and annuity mutual funds and The Aetna Series
Fund for serving as investment adviser. Under the advisory
agreements, the Funds pay the Company a daily fee which, on an
annual basis, ranges, depending on the fund, from .25% to 1.00%
of their average daily net assets. The advisory agreements also
call for the variable funds to pay their own administrative
expenses and for The Aetna Series Fund to pay certain
administrative expenses. The Company also receives fees
(expressed as a percentage of the average daily net assets) from
The Aetna Series Fund for providing administration shareholder
services and promoting sales. The amount of compensation and
fees received from the Separate Accounts and Funds, included in
Charges Assessed Against Policyholders, amounted to $104.6 million,
$93.6 million and $80.5 million in 1994, 1993 and 1992, respectively.
The Company may waive advisory fees at its discretion.
F-21
<PAGE>
AETNA LIFE INSURANCE AND ANNUITY COMPANY AND SUBSIDIARIES
(A WHOLLY OWNED SUBSIDIARY OF AETNA LIFE AND CASUALTY COMPANY)
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
The Company may, from time to time, make reimbursements to a Fund
for some or all of its operating expenses. Reimbursement
arrangements may be terminated at any time without notice.
Since 1981, all domestic individual non-participating life
insurance of Aetna and its subsidiaries has been issued by the
Company. Effective December 31, 1988, the Company entered into a
reinsurance agreement with Aetna Life Insurance Company ("Aetna
Life") in which substantially all of the non-participating
individual life and annuity business written by Aetna Life prior
to 1981 was assumed by the Company. A $108.0 million commission,
paid by the Company to Aetna Life in 1988, was capitalized as
deferred policy acquisition costs. The Company maintained
insurance reserves of $690.3 million and $711.0 million as of
December 31, 1994 and 1993, respectively, relating to the
business assumed. In consideration for the assumption of this
business, a loan was established relating to the assets held by
Aetna Life which support the insurance reserves. The loan is
being reduced in accordance with the decrease in the reserves.
The fair value of this loan was $630.3 million and $685.8 million
as of December 31, 1994 and 1993, respectively, and is based upon
the fair value of the underlying assets. Premiums of $32.8 million,
$33.3 million and $36.8 million and current and future benefits
of $43.8 million, $55.4 million and $47.2 million were
assumed in 1994, 1993 and 1992, respectively.
Investment income of $51.5 million, $53.3 million and $56.7 million
was generated from the reinsurance loan to affiliate in 1994, 1993
and 1992, respectively. Net income of approximately $25.1 million,
$13.6 million and $21.7 million resulted from this agreement in 1994,
1993 and 1992, respectively.
On December 16, 1988, the Company assumed $25.0 million of
premium revenue from Aetna Life for the purchase and
administration of a life contingent single premium variable
payout annuity contract. In addition, the Company also is
responsible for administering fixed annuity payments that are
made to annuitants receiving variable payments. Reserves of
$24.2 million and $27.8 million were maintained for this contract
as of December 31, 1994 and 1993, respectively.
Effective February 1, 1992, the Company increased its retention
limit per individual life to $2.0 million and entered into a
reinsurance agreement with Aetna Life to reinsure amounts in
excess of this limit, up to a maximum of $8.0 million on any new
individual life business, on a yearly renewable term basis.
Premium amounts related to this agreement for 1994, 1993 and 1992
were immaterial.
Effective December 31, 1992, the Company entered into an
assumption reinsurance agreement with Aetna Life to reinsure a
block of approximately 3,500 life contingent, period certain and
deferred lump sum annuities (totaling $175.5 million in premium)
issued by the Company to Aetna Casualty to fund its obligations
under structured settlement agreements. The negotiated price
recognized the sale of future profits and included consideration
to ALIAC for the continued administration of the reinsured
contracts on behalf of, and in the name of, Aetna Life.
The Company received no capital contributions in 1994, 1993 or 1992.
Premiums due and other receivables include $27.6 million and $9.8 million
due from affiliates in 1994 and 1993, respectively. Other liabilities
include $27.9 million and $26.1 million due to affiliates for 1994 and
1993, respectively.
Substantially all of the administrative and support functions of
the Company are provided by Aetna and its affiliates. The
financial statements reflect allocated charges for these services
based upon measures appropriate for the type and nature of
service provided.
F-22
<PAGE>
AETNA LIFE INSURANCE AND ANNUITY COMPANY AND SUBSIDIARIES
(A WHOLLY OWNED SUBSIDIARY OF AETNA LIFE AND CASUALTY COMPANY)
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
9. REINSURANCE
The Company utilizes indemnity reinsurance agreements to reduce
its exposure to large losses in all aspects of its insurance
business. Such reinsurance permits recovery of a portion of
losses from reinsurers, although it does not discharge the
primary liability of the Company as direct insurer of the risks
reinsured. The Company evaluates the financial strength of
potential reinsurers and continually monitors the financial
condition of reinsurers. Only those reinsurance recoverables
deemed probable of recovery are reflected as assets on the
Company's Consolidated Balance Sheets.
The following table includes premium amounts ceded/assumed
to/from affiliated companies as discussed in Note 8 above.
<TABLE>
<CAPTION>
CEDED TO ASSUMED
DIRECT OTHER FROM OTHER NET
AMOUNT COMPANIES COMPANIES AMOUNT
-------- --------- ---------- -------
(millions)
<S> <C> <C> <C> <C>
1994
Premiums:
Life Insurance...................... $ 25.8 $ 6.0 $ 32.8 $ 52.6
Accident and Health Insurance....... 10.8 9.3 -- 1.5
Annuities........................... 69.9 -- 0.2 70.1
--------------------------------------------------------------
Total earned premiums............... $106.5 $15.3 $ 33.0 $ 124
--------------------------------------------------------------
--------------------------------------------------------------
1993
Premiums:
Life Insurance..................... $ 20.9 $ 5.6 $ 33.3 $ 48.6
Accident and Health Insurance...... 14.4 12.9 -- 1.5
Annuities.......................... 31.3 -- 0.7 32.0
--------------------------------------------------------------
Total earned premiums.............. $ 66.6 $18.5 $ 34.0 $ 82.1
--------------------------------------------------------------
--------------------------------------------------------------
1992
Premiums:
Life Insurance..................... $ 20.8 $ 5.2 $ 36.8 $ 52.4
Accident and Health Insurance...... 15.1 13.7 -- 1.4
Annuities.......................... 18.4 -- 0.3 18.7
--------------------------------------------------------------
Total earned premiums.............. $ 54.3 $18.9 $ 37.1 $ 72.5
--------------------------------------------------------------
--------------------------------------------------------------
</TABLE>
10. FINANCIAL INSTRUMENTS
The carrying values and estimated fair values of the Company's financial
instruments at December 31, 1994 and 1993 were as follows:
<TABLE>
<CAPTION>
1994 1993
---------------------- ----------------------
CARRYING CARRYING CARRYING CARRYING
VALUE VALUE VALUE VALUE
---------- --------- --------- ---------
(millions)
<S> <C> <C> <C> <C>
Assets:
Cash and cash equivalents.................. $623.3 $623.3 $536.1 $536.1
Short-term investments..................... 98.0 98.0 22.6 22.6
Debt securities............................ 10,191.4 10,191.4 10,531.0 10,531.0
Equity securities.......................... 229.1 229.1 172.6 172.6
Limited partnership........................ 24.4 24.4 -- --
Mortgage loans............................. 9.9 9.9 10.1 10.1
Liabilities:
Investment contract liabilities:
With a fixed maturity.................. 826.7 833.5 733.3 795.6
Without a fixed maturity............... 8,074.9 7,870.4 8,196.4 8,099.3
</TABLE>
F-23
<PAGE>
AETNA LIFE INSURANCE AND ANNUITY COMPANY AND SUBSIDIARIES
(A WHOLLY OWNED SUBSIDIARY OF AETNA LIFE AND CASUALTY COMPANY)
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
Fair value estimates are made at a specific point in time, based
on available market information and judgments about the financial
instrument, such as estimates of timing and amount of expected
future cash flows. Such estimates do not reflect any premium or
discount that could result from offering for sale at one time the
Company's entire holdings of a particular financial instrument,
nor do they consider the tax impact of the realization of
unrealized gains or losses. In many cases, the fair value
estimates cannot be substantiated by comparison to independent
markets, nor can the disclosed value be realized in immediate
settlement of the instrument. In evaluating the Company's
management of interest rate and liquidity risk, the fair values
of all assets and liabilities should be taken into consideration,
not only those above.
The following valuation methods and assumptions were used by the Company
in estimating the fair value of the above financial instruments:
SHORT-TERM INSTRUMENTS: Fair values are based on quoted market
prices or dealer quotations. Where quoted market prices are not
available, the carrying amounts reported in the Consolidated
Balance Sheets approximates fair value. Short-term instruments
have a maturity date of one year or less and include cash and
cash equivalents, and short-term investments.
DEBT AND EQUITY SECURITIES: Fair values are based on quoted
market prices or dealer quotations. Where quoted market prices
or dealer quotations are not available, fair value is estimated
by using quoted market prices for similar securities or
discounted cash flow methods.
MORTGAGE LOANS: Fair value is estimated by discounting expected
mortgage loan cash flows at market rates which reflect the rates
at which similar loans would be made to similar borrowers. The
rates reflect management's assessment of the credit quality and
the remaining duration of the loans. The fair value estimate of
mortgage loans of lower quality, including problem and
restructured loans, is based on the estimated fair value of the
underlying collateral.
INVESTMENT CONTRACT LIABILITIES (INCLUDED IN POLICYHOLDERS' FUNDS
LEFT WITH THE COMPANY): With a fixed maturity: Fair value is
estimated by discounting cash flows at interest rates currently
being offered by, or available to, the Company for similar contracts.
WITHOUT A FIXED MATURITY: Fair value is estimated as the amount
payable to the contractholder upon demand. However, the Company
has the right under such contracts to delay payment of
withdrawals which may ultimately result in paying an amount
different than that determined to be payable on demand.
11. SEGMENT INFORMATION
Effective December 31, 1994, the Company's operations, which
previously were reported in total, will now be reported through
two major business segments: Life Insurance and Financial
Services. The Life Insurance segment markets most types of life
insurance including universal life, interest-sensitive whole
life, and term insurance. These products are offered primarily
to individuals, small businesses, employer-sponsored groups and
executives of Fortune 2000 companies. The Financial Services
segment markets and services individual and group annuity
contracts which offer a variety of funding and distribution
options for personal and employer-sponsored retirement plans that
qualify for tax deferral under sections 401(k) for corporations,
403(b) for hospitals and educational institutions, 408 for
individual retirement accounts, and 457 for state and local
governments and tax exempt healthcare organizations (the
"deferred compensation market"), of the Internal Revenue Code.
These contracts may be immediate or deferred. These products are
offered primarily to individuals, pension plans, small businesses
and employer-sponsored groups.
F-24
<PAGE>
AETNA LIFE INSURANCE AND ANNUITY COMPANY AND SUBSIDIARIES
(A WHOLLY OWNED SUBSIDIARY OF AETNA LIFE AND CASUALTY COMPANY)
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
Summarized financial information for the Company's principal operations was
as follows:
<TABLE>
<CAPTION>
1994 1993 1992
--------- --------- ---------
(millions)
<S> <C> <C> <C>
Revenue:
Life insurance.................................... $ 386.1 $ 371.7 $ 363.6
Financial services................................ 946.1 892.8 812.5
--------- --------- ---------
Total revenue................................. $ 1,332.2 $ 1,264.5 $ 1,176.1
--------- --------- ---------
--------- --------- ---------
Income from continuing operations before income taxes
and cumulative effect adjustments:
Life insurance.................................... $ 96.8 $ 98.0 $ 74.6
Financial services................................ 119.7 121.1 93.5
--------- --------- ---------
Total income from continuing operations
before income taxes and cumulative effect
adjustments................................. $ 216.5 $ 219.1 $ 168.1
Net income:
Life insurance.................................... $ 59.8 $ 56.1 $ 45.6
Financial services................................ 85.5 86.8 67.6
--------- --------- ---------
Income before cumulative effect adjustments... $ 145.3 $ 142.9 $ 113.2
--------- --------- ---------
Cumulative effect adjustments................. -- -- 9.6
Net income............................................ $ 145.3 $ 142.9 $ 122.8
--------- --------- ---------
--------- --------- ---------
<CAPTION>
1994 1993 1992
--------- --------- ---------
(millions)
<S> <C> <C> <C>
Assets under management, at fair value:
Life insurance.................................... $ 2,175.2 $ 2,180.1 $ 1,973.1
Financial services................................ 17,791.9 16,600.5 13,644.3
--------- --------- ---------
Total assets under management................. $19,967.1 $18,780.6 $15,617.4
--------- --------- ---------
--------- --------- ---------
</TABLE>
F-25
<PAGE>
STATEMENT OF ADDITIONAL INFORMATION
VARIABLE ANNUITY ACCOUNT C
VARIABLE ANNUITY CONTRACTS
ISSUED BY
AETNA LIFE INSURANCE AND ANNUITY COMPANY
FORM NO. 88720(S) ALIAC Ed. _______/9__
<PAGE>
VARIABLE ANNUITY ACCOUNT C
PART C - OTHER INFORMATION
ITEM 24. FINANCIAL STATEMENTS AND EXHIBITS
(a) Financial Statements:
(1) Included in Part A:
Condensed Financial Information
(2) Included in Part B:
Financial Statements of Variable Annuity Account C:
- Independent Auditors' Report
- Statement of Assets and Liabilities as of December 31, 1994
- Statement of Operations for the year ended December 31, 1994
- Statements of Changes in Net Assets for the years ended
December 31, 1994 and 1993
- Notes to Financial Statements
Financial Statements of the Depositor:
- Independent Auditors' Report
- Consolidated Statements of Income for the years ended
December 31, 1994, 1993 and 1992
- Consolidated Balance Sheets as of December 31, 1994 and 1993
- Consolidated Statements of Changes in Shareholder's Equity
for the years ended December 31, 1994, 1993 and 1992
- Consolidated Statements of Cash Flows for the years ended
December 31, 1994, 1993 and 1992
- Notes to Consolidated Financial Statements
(b) Exhibits
(1) Resolution of the Board of Directors of Aetna Life Insurance and
Annuity Company establishing Variable Annuity Account C(1)
(2) Not applicable
(3.1) Form of Broker-Dealer Agreement(2)
(3.2) Alternative Form of Wholesaling Agreement and related Selling
Agreement(2)
(4.1) Form of Variable Annuity Contract (G-CDA-HF)
(5) Form of Variable Annuity Contract Application (300-GTD-IA)(3)
(6) Certification of Incorporation and By-Laws of Depositor(5)
(7) Not applicable
(8.1) Fund Participation Agreement between Aetna Life Insurance and
Annuity Company, Alger American Fund and Fred Alger Management, Inc.
dated September 1, 1993(2)
(8.2) Fund Participation Agreement between Aetna Life Insurance and
Annuity Company and Calvert Asset Management Company (Calvert
Responsibly Invested Balanced Portfolio formerly Calvert Socially
Responsible Series) dated March 13, 1989 and amended December 12,
1993(6)
<PAGE>
(8.3) Fund Participation Agreement between Aetna Life Insurance and
Annuity Company and Fidelity Distributors Corporation dated February
1, 1994 (Variable Insurance Products Fund)(7)
(8.4) Fund Participation Agreement between Aetna Life Insurance and
Annuity Company and Fidelity Distributors Corporation dated February
1, 1994 (Variable Insurance Products Fund II)(7)
(8.5) Fund Participation Agreement between Aetna Life Insurance and
Annuity Company and Franklin Advisers, Inc. dated January 31,
1989(8)
(8.6) Fund Participation Agreement between Aetna Life Insurance and
Annuity Company and Janus Aspen Series dated April 19, 1994 and
amended June 15, 1994(9)
(8.7) Fund Participation Agreement between Aetna Life Insurance and
Annuity Company and Lexington Management Corporation regarding
Natural Resources Trust dated December 1, 1988 and amended
February 11,1991(6)
(8.8) Fund Participation Agreement between Aetna Life Insurance and
Annuity Company and Advisers Management Trust (now Neuberger &
Berman Advisers Management Trust) dated April 14, 1989(2)
(8.9) Fund Participation Agreement between Aetna Life Insurance and
Annuity Company and Scudder Variable Life Investment Fund dated
April 27, 1992 and amended February 19, 1993 and August 13, 1993(10)
(8.10) Fund Participation Agreement between Aetna Life Insurance and
Annuity Company, Investors Research Corporation and TCI Portfolios,
Inc. dated July 29, 1992 and amended December 22, 1992 and June 1,
1994(10)
(9) Opinion of Counsel
(10.1) Consent of Independent Auditors
(10.2) Consent of Counsel
(11) Not applicable
(12) Not applicable
(13) Computation of Performance Data
(14) Financial Data Schedule
(15.1) Powers of Attorney(11)
(15.2) Authorization for Signatures(12)
1. Incorporated by reference to Registration Statement on Form N-4 (File
No. 2-52449) filed on February 28, 1986.
2. Incorporated by reference to Pre-Effective Amendment No. 1 to
Registration Statement on Form N-4 (File No. 33-75996) filed on April 21,
1994.
3. Incorporated by reference to Post-Effective Amendment No. 3 to
Registration Statement on Form N-4 (File No. 33-75982) filed on February 24,
1995.
4. Incorporated by reference to Post-Effective Amendment No. 4 to
Registration Statement on Form N-4 (File No. 33-75982) filed on April 28,
1995.
5. Incorporated by reference to Post-Effective Amendment No. 58 to
Registration Statement on Form N-4 (File No. 2-52449) filed on February 28,
1994.
<PAGE>
6. Incorporated by reference to Post-Effective Amendment No. 4 to
Registration Statement on Form N-4 (File No. 33-75978) filed on March 24,
1995.
7. Incorporated by reference to Pre-Effective Amendment No. 1 to
Registration Statement on Form N-4 (File No. 33-75978) filed on April 25,
1994.
8. Incorporated by reference to Pre-Effective Amendment No. 1 to
Registration Statement on Form N-4 (File No. 33-75990) filed on April 25,
1994.
9. Incorporated by reference to Post-Effective Amendment No. 2 to
Registration Statement on Form N-4 (File No. 33-75960) filed on August 9,
1994.
10. Incorporated by reference to Registration Statement on Form N-4
(File No. 33-88720) filed on January 20, 1995.
11. The Power of Attorney for Eugene M. Trovato, Vice President,
Controller, is included as an exhibit with this filing. The Power of
Attorney for David E. Bushong, Acting Chief Financial Officer, is
incorporated by reference to Post-Effective Amendment No. 1 to Registration
Statement on Form N-4 (File No. 33-87932) electronically filed on September
18, 1995. The Powers of Attorney for all other signatories are incorporated
by Reference to Registration Statement on Form N-4 (File No. 33-88720) filed
on January 20, 1995.
12. Incorporated by Reference to Post-Effective Amendment No. 1 to
Registration Statement on Form N-4 (File No. 33-91846) electronically filed
on August 15, 1995.
<PAGE>
ITEM 25. DIRECTORS AND OFFICERS OF THE DEPOSITOR
Name and Principal
Business Address* Positions and Offices with Depositor
- ----------------- ------------------------------------
Daniel P. Kearney Director and President
David E. Bushong Acting Chief Financial Officer
Eugene M. Trovato Vice President, Controller (chief
accounting officer)
Gary G. Benanav Director
Christopher J. Burns Director and Senior Vice President,
Life
Laura R. Estes Director and Senior Vice President,
ALIAC Pensions
Shaun P. Mathews Director and Senior Vice President,
Strategic Markets and Products
Scott A. Striegel Director and Senior Vice President,
Annuity
James C. Hamilton Director, Vice President and Treasurer
John Y. Kim Director and Senior Vice President,
ALIAC Investments
Zoe Baird Senior Vice President and General
Counsel
Fred J. Franklin Vice President and Chief Compliance
Officer
Susan E. Schechter Corporate Secretary and Counsel
* The principal business address of all directors and officers listed is
151 Farmington Avenue, Hartford, Connecticut 06156.
ITEM 26. PERSONS CONTROLLED BY OR UNDER COMMON CONTROL WITH THE DEPOSITOR OR
REGISTRANT
Incorporated herein by reference to Exhibit 24(c) to Registration
Statement on Form N-4 (File No. 33-88720) filed on January 20, 1995.
<PAGE>
ITEM 27. NUMBER OF CONTRACT OWNERS
As of September 30, 1995, there were 571,510 contract owners of variable
annuity contracts funded through Account C.
ITEM 28. INDEMNIFICATION
Reference is hereby made to Section 33-320a of the Connecticut General
Statutes ("C.G.S.") regarding indemnification of directors and officers of
Connecticut corporations. The statute provides in general that Connecticut
corporations shall indemnify their officers, directors, employees, agents, and
certain other defined individuals against judgments, fines, penalties, amounts
paid in settlement and reasonable expenses actually incurred in connection with
proceedings against the corporation. The corporation's obligation to provide
such indemnification does not apply unless (1) the individual is successful on
the merits in the defense of any such proceeding; or (2) a determination is made
(by a majority of the board of directors not a party to the proceeding by
written consent; by independent legal counsel selected by a majority of the
directors not involved in the proceeding; or by a majority of the shareholders
not involved in the proceeding) that the individual acted in good faith and in
the best interests of the corporation; or (3) the court, upon application by the
individual, determines in view of all the circumstances that such person is
reasonably entitled to be indemnified.
C.G.S. Section 33-320a provides an exclusive remedy: a Connecticut
corporation cannot indemnify a director or officer to an extent either greater
or less than that authorized by the statute, e.g., pursuant to its certificate
of incorporation, bylaws, or any separate contractual arrangement. However, the
statute does specifically authorize a corporation to procure indemnification
insurance to provide greater indemnification rights. The premiums for such
insurance may be shared with the insured individuals on an agreed basis.
Consistent with the statute, Aetna Life and Casualty Company has procured
insurance from Lloyd's of London and several major United States excess insurers
for its directors and officers and the directors and officers of its
subsidiaries, including the Depositor, which supplements the indemnification
rights provided by C.G.S. Section 33-320a to the extent such coverage does not
violate public policy.
ITEM 29. PRINCIPAL UNDERWRITER
(a) In addition to serving as the principal underwriter for the Registrant,
Aetna Life Insurance and Annuity Company (ALIAC) also acts as the
principal underwriter for Variable Life Account B, Variable Annuity
Accounts B and G (separate accounts of ALIAC registered as unit
investment trusts), and Variable Annuity Account I (a separate account
of Aetna Insurance Company of America (AICA) registered as a unit
investment trust). Additionally, ALIAC is the investment adviser for
Aetna Variable Fund, Aetna Income
<PAGE>
Shares, Aetna Variable Encore Fund, Aetna Investment Advisers Fund,
Inc., Aetna GET Fund, Aetna Series Fund, Inc. and Aetna Generation
Portfolios, Inc. ALIAC is also the depositor of the Registrant,
Variable Life Account B and Variable Annuity Accounts B and G.
(b) See Item 25 regarding the Depositor.
(c) Compensation as of December 31, 1994:
(1) (2) (3) (4) (5)
Name of Net Underwriting Compensation on
Principal Discounts and Redemption or Brokerage
Underwriter Commissions Annuitization Commissions Compensation*
- ----------- ----------- ------------- ----------- -------------
Aetna Life $1,644,753 $62,552,321
Insurance and
Annuity
Company
* Compensation shown in column 5 includes deductions for mortality and
expense risk guarantees and contract charges assessed to cover costs
incurred in the sales and administration of the contracts issued under
Account C.
ITEM 30. LOCATION OF ACCOUNTS AND RECORDS
All records concerning contract owners of Variable Annuity Account C are
located at the home office of the Depositor as follows:
Aetna Life Insurance and Annuity Company
151 Farmington Avenue
Hartford, Connecticut 06156
ITEM 31. MANAGEMENT SERVICES
Not applicable
ITEM 32. UNDERTAKINGS
Registrant hereby undertakes:
(a) to file a post-effective amendment to this registration statement on
Form N-4 as frequently as is necessary to ensure that the audited
financial statements in the registration statement are never more than
sixteen months old for as long as payments under the variable annuity
contracts may be accepted;
<PAGE>
(b) to include as part of any application to purchase a contract offered by
a prospectus which is part of this registration statement on Form N-4,
a space that an applicant can check to request a Statement of
Additional Information; and
(c) to deliver any Statement of Additional Information and any financial
statements required to be made available under this Form N-4 promptly
upon written or oral request.
(d) Insofar as indemnification for liability arising under the Securities
Act of 1933 may be permitted to directors, officers and controlling
persons of the Registrant pursuant to the foregoing provisions, or
otherwise, the Registrant has been advised that in the opinion of the
Securities and Exchange Commission such indemnification is against
public policy as expressed in the Act and is, therefore, unenforceable.
In the event that a claim for indemnification against such liabilities
(other than the payment by the Registrant of expenses incurred or paid
by a director, officer or controlling person of the Registrant in the
successful defense of any action, suit or proceeding) is asserted by
such director, officer or controlling person in connection with the
securities being registered, the Registrant will, unless in the opinion
of its counsel the matter has been settled by controlling precedent,
submit to a court of appropriate jurisdiction the question of whether
such indemnification by it is against public policy as expressed in the
Act and will be governed by the final adjudication of such issue.
<PAGE>
SIGNATURES
As required by the Securities Act of 1933 and the Investment Company Act of
1940, the Registrant, Variable Annuity Account C of Aetna Life Insurance and
Annuity Company, has duly caused this Pre-Effective Amendment No. 1 to its
Registration Statement on Form N-4 (File No. 33-88720) to be signed on its
behalf by the undersigned, thereunto duly authorized in the City of Hartford,
State of Connecticut, on the 30th day of November, 1995.
VARIABLE ANNUITY ACCOUNT C OF AETNA
LIFE INSURANCE AND ANNUITY COMPANY
(REGISTRANT)
By: AETNA LIFE INSURANCE AND ANNUITY COMPANY
(DEPOSITOR)
By: Daniel P. Kearney*
----------------------------------------------------
Daniel P. Kearney
President
Signature Title Date
- --------- ----- ----
Daniel P. Kearney* )
- -------------------- Director and President )
Daniel P. Kearney (principal executive officer) )
)
David E. Bushong* ) November
- -------------------- Acting Chief Financial Officer )
David E. Bushong (principal financial officer) ) 30, 1995
)
Eugene M. Trovato* )
- -------------------- Vice President, Controller )
Eugene M. Trovato )
)
James C. Hamilton* )
- -------------------- Director )
James C. Hamilton )
)
Gary G. Benanav* )
- -------------------- Director )
Gary G. Benanav )
)
Christopher J. Burns* )
- -------------------- Director )
Christopher J. Burns )
)
John Y. Kim* )
- -------------------- Director )
John Y. Kim )
)
<PAGE>
Laura R. Estes* )
- -------------------- Director )
Laura R. Estes )
)
Shaun P. Mathews* )
- -------------------- Director )
Shaun P. Mathews )
)
Scott A. Striegel* )
- -------------------- Director )
Scott A. Striegel )
/s/
- -------------------------
*Attorney-in-Fact
<PAGE>
VARIABLE ANNUITY ACCOUNT C
EXHIBIT INDEX
Exhibit No. Exhibit Page
----------- ------- -----
99-B.1 Resolution of the Board of Directors of *
Aetna Life Insurance and Annuity Company
establishing Variable Annuity Account C
99-B.3.1 Form of Broker-Dealer Agreement *
99-B.3.2 Alternative Form of Wholesaling Agreement *
and related Selling Agreement
99-B.4.1 Form of Variable Annuity Contract (G-CDA-HF) _____
99-B.5 Form of Variable Annuity Contract *
Application (300-GTD-IA)
99-B.6 Certification of Incorporation and By-Laws *
of Depositor
99-B.8.1 Fund Participation Agreement between Aetna *
Life Insurance and Annuity Company, Alger
American Fund and Fred Alger Management,
Inc. dated September 1, 1993
99-B.8.2 Fund Participation Agreement between Aetna *
Life Insurance and Annuity Company and
Calvert Asset Management Company (Calvert
Responsibly Invested Balanced Portfolio
formerly Calvert Socially Responsible
Series) dated March 13, 1989 and amended
December 12, 1993
99-B.8.3 Fund Participation Agreement between Aetna *
Life Insurance and Annuity Company and
Fidelity Distributors Corporation dated
February 1, 1994 (Variable Insurance
Products Fund)
99-B.8.4 Fund Participation Agreement between Aetna *
Life Insurance and Annuity Company and
Fidelity Distributors Corporation dated
February 1, 1994 (Variable Insurance
Products Fund II)
*Incorporated by reference
<PAGE>
Exhibit No. Exhibit Page
----------- ------- ----
99-B.8.5 Fund Participation Agreement between Aetna *
Life Insurance and Annuity Company and
Franklin Advisers, Inc. dated January 31,
1989
99-B.8.6 Fund Participation Agreement between Aetna *
Life Insurance and Annuity Company and
Janus Aspen Series dated April 19, 1994 and
amended June 15, 1994
99-B.8.7 Fund Participation Agreement between Aetna *
Life Insurance and Annuity Company and
Lexington Management Corporation regarding
Natural Resources Trust dated December 1,
1988 and amended February 11, 1991
99-B.8.8 Fund Participation Agreement between Aetna *
Life Insurance and Annuity Company and
Advisers Management Trust (now Neuberger &
Berman Advisers Management Trust) dated
April 14, 1989
99-B.8.9 Fund Participation Agreement between Aetna *
Life Insurance and Annuity Company and
Scudder Variable Life Investment Fund dated
April 27, 1992 and amended February 19,
1993 and August 13, 1993
99-B.8.10 Fund Participation Agreement between Aetna *
Life Insurance and Annuity Company,
Investors Research Corporation and TCI
Portfolios, Inc. dated July 29, 1992 and
amended December 22, 1992 and June 1, 1994
99-B.9 Opinion of Counsel _____
99-B.10.1 Consent of Independent Auditors _____
99-B.10.2 Consent of Counsel (Included in item 99-B.9) _____
99-B.13 Computation of Performance Data _____
99-B.15.1 Powers of Attorney _____
99-B.15.2 Authorization for Signatures *
27 Financial Data Schedule _____
* Incorporated by reference
<PAGE>
Exhibit 99-B.4.1
AETNA LIFE INSURANCE AND ANNUITY COMPANY
Customer Relations Department, PFSD
HOME OFFICE: 151 FARMINGTON AVE.
HARTFORD, CONNECTICUT 06156
203-272-0123
Herein called Aetna
Agrees to pay the benefits stated in this Contract.
THE VARIABLE FEATURES OF THIS CONTRACT ARE DESCRIBED IN PARTS III AND IV.
RIGHT TO CANCEL
The Contract Holder may cancel this Contract within 10 days of receiving it
by returning this Contract along with a written notice to Aetna at the above
address or to the agent from whom it was purchased. Within 7 days after it
receives the notice of cancellation and this Contract at its Home Office,
Aetna will return the entire consideration paid plus any increase or minus
any decrease in the cash value of any funds allocated to the Separate
Account.
This page, the following pages, and the application make up the entire
Contract.
Signed at the Home Office on the Effective Date.
/s/ George N. Gingold /s/ Dean E. Wolcott
SECRETARY PRESIDENT
GROUP VARIABLE, FIXED, OR COMBINATION ANNUITY CONTRACT
NON-PARTICIPATING
ALL PAYMENTS AND VALUES PROVIDED BY THIS CONTRACT,
WHEN BASED ON INVESTMENT EXPERIENCE OF A SEPARATE ACCOUNT,
ARE VARIABLE AND ARE NOT GUARANTEED AS TO FIXED DOLLAR AMOUNT.
39355
CAT. 70123
G-CDA-HF PRINTED IN U.S.A.
<PAGE>
SPECIFICATIONS
PLAN
TYPE OF PLAN
CONTRACT HOLDER
GROUP CONTRACT NO.
EFFECTIVE DATE
THIS CONTRACT IS DELIVERED IN
AND IS SUBJECT TO THE LAWS OF THAT JURISDICTION
Guaranteed Interest Rate -- There are guaranteed interest rates for amounts
held in the General Account. (See 3.03(c) and 3.04.)
Surrender Fee -- There will be a charge deducted for early surrender. (See
Part V.)
Deductions from the Separate Account -- There will be deductions for
mortality and expense risks and administrative fees. (See 3.08.)
Deduction from Purchase Payment(s) -- Purchase Payment(s) are subject to a
deduction for premium taxes, if any. (See 3.01.)
This Contract is a legal contract and constitutes the entire legal
relationship between Aetna and the Contract Holder.
READ THIS CONTRACT CAREFULLY. This Contract sets forth, in detail, all of
the rights and obligations of both you and Aetna. IT IS, THEREFORE,
IMPORTANT THAT YOU READ THIS CONTRACT CAREFULLY.
2
<PAGE>
TABLE OF CONTENTS
I. GENERAL DEFINITIONS
PAGE
1.01 Annuitant....................................................... 5
1.02 Annuity......................................................... 5
1.03 Fixed Account................................................... 5
1.04 Fixed Annuity................................................... 5
1.05 Fund(s)......................................................... 5
1.06 General Account................................................. 5
1.07 Guaranteed Accumulation Account................................. 5
1.08 Participant..................................................... 5
1.09 Plan............................................................ 5
1.10 Purchase Payments............................................... 5
1.11 Separate Account................................................ 5
1.12 Valuation Period................................................ 5
1.13 Variable Annuity................................................ 5
II. GENERAL PROVISIONS
2.01 Change of Contract.............................................. 6
2.02 Change of Fund(s)............................................... 6
2.03 Non-participating Contract...................................... 6
2.04 Payments........................................................ 6
2.05 State Laws...................................................... 6
2.06 Control of Contract............................................. 6
2.07 Designation of Beneficiary...................................... 7
2.08 Misstatements and Adjustments................................... 7
2.09 Incontestability................................................ 7
2.10 Grace Period.................................................... 7
2.11 Individual Certificates......................................... 7
III. PURCHASE PAYMENT, CURRENT VALUE, AND SURRENDER PROVISIONS
3.01 Net Purchase Payment(s)......................................... 8
3.02 Individual Accounts............................................. 8
3.03 Guaranteed Accumulation Account (GA Account).................... 8
3.04 Guaranteed Interest Rate -- Fixed Account....................... 9
3.05 Experience Credits.............................................. 9
3.06 Maintenance Fee................................................. 10
3.07 Fund(s) Record Units -- Separate Account........................ 10
3.08 Net Return Factor(s) -- Separate Account........................ 10
3.09 Fund(s) Record Unit Value -- Separate Account................... 10
3.10 Current Value................................................... 10
3.11 Transfer of Current Value from the Funds or GA Account.......... 10
3.12 Transfer of Current Value from the Fixed Account................ 11
3.13 Notice to the Contract Holder................................... 11
3.14 Sum Payable at Death (Before Annuity Payments Start)............ 11
3.15 Surrender Value................................................. 11
3.16 Payment of Surrender Value...................................... 11
3.17 Reinstatement................................................... 11
3
<PAGE>
IV. ANNUITY PROVISIONS
4.01 Choices to be Made.............................................. 13
4.02 Terms of Annuity Options........................................ 13
4.03 Death of Annuitant/Beneficiary.................................. 13
4.04 Fund(s) Annuity Units -- Separate Account....................... 14
4.05 Fund(s) Annuity Unit Value -- Separate Account.................. 14
4.06 Annuity Options................................................. 14
V. SPECIAL PROVISIONS
5.01 Deferred Compensation Plan...................................... 23
5.02 Allocated Pension or Profit Sharing Plan........................ 24
5.03 Unallocated Pension or Profit Sharing Plan...................... 25
5.04 Tax Deferred Annuity Plan....................................... 26
5.05 Tax Deferred Annuity Plan (ERISA)............................... 28
VI. FEE SCHEDULE
6.01 Maintenance Fee................................................. 31
6.02 Surrender Fee................................................... 31
4
<PAGE>
I. GENERAL DEFINITIONS
1.01. ANNUITANT -- A person on whose life an An-nuity has been effected
under this Contract.
1.02. ANNUITY -- Payment of an income:
(a) For the life of one or two persons;
(b) For a stated period; or
(c) For some combination of (a) and (b).
1.03. FIXED ACCOUNT -- An accumulation option with a guaranteed minimum
interest rate. Aetna may credit a higher rate which is not
guaranteed.
1.04. FIXED ANNUITY -- An Annuity with payments which do not vary in amount.
1.05. FUND(S) -- The open-end registered management investment companies
(mutual funds) made available by Aetna under this Contract.
1.06. GENERAL ACCOUNT -- The Account holding the assets of Aetna, other
than those assets held in the Separate Account.
1.07. GUARANTEED ACCUMULATION ACCOUNT -- An accumulation option which
guarantees a stipulated rate of interest for a specified period of
time.
1.08. PARTICIPANT -- A person who participates in the Plan named on the
Specifications page of this Contract.
1.09. PLAN -- The Plan named on the Specifications page. The Plan is not a
part of the Contract. Aetna is not bound by the terms of the Plan.
1.10. PURCHASE PAYMENTS -- Payments made to Aetna.
1.11. SEPARATE ACCOUNT -- An account set up by Aetna under the Connecticut
Insurance Laws which purchase shares of the Fund(s).
1.12. VALUATION PERIOD (PERIOD) -- The period of time from the end of one
business day on the New York Stock Exchange to the end of the next
business day.
1.13. VARIABLE ANNUITY -- An Annuity with payments which vary with the net
investment results of a Separate Account.
5
<PAGE>
II. GENERAL PROVISIONS
2.01. CHANGE OF CONTRACT: Only an authorized officer of Aetna may change
the terms of this Contract. Aetna will notify the Contract Holder in
writing at least 30 days before the effective date of any change. Any
change will not affect the amount or terms of any Annuity which begins
before the change.
Any change that affects the following provisions of this Contract will
not apply to any individual participating under this Contract before
the effective date of change:
(a) Net Purchase Payment(s)
(b) Guaranteed GA Account Interest Rate
(c) Guaranteed Interest Rate -- Fixed Account
(d) Net Return Factor(s) -- Separate Account
(e) Current Value
(f) Surrender Value
(g) Fund(s) Annuity Unit Value -- Separate Account
Any change that affects the Annuity Options and the tables for the
Options can only be made:
(1) No earlier than 12 months after the Effective Date of this
Contract; and
(2) No earlier than 12 months after the effective date of any such
prior change.
New Participants covered under this Contract on or after the effective
date of any change will be subject to the change. If the Contract
Holder does not agree to any change under this provision, no new
Participants will be covered under this Contract. Aetna will continue
to accept Purchase Pay-ments for the Participants covered under this
Contract before the change. This Contract may also be changed as
required by federal or state law.
2.02. CHANGE OF FUND(S): Aetna, or the Separate Account, may:
(a) Change the Fund(s) which may be invested in by the Separate
Account; and
(b) Replace the shares of any Fund(s) held in the Separate Account
with shares of any other Fund(s).
Changes must be:
(1) Approved by a majority vote of persons having an interest in the
Separate Account and the Fund(s);
(2) Deemed necessary by Aetna under the Investment Company Act of
1940; or
(3) Deemed necessary by Aetna to accomplish the purpose of the
Separate Account.
Aetna will notify the Contract Holder of any change.
2.03. NONPARTICIPATING CONTRACT: The Contract Holder, Participants, or
beneficiaries will not have a right to share in the earnings of Aetna.
2.04. PAYMENTS: Aetna will make Annuity payments as and when due. Aetna
will make other payments within 7 days of receipt at its Home Office
of a written claim for payment which is in good order, except as
provided in 3.16.
2.05. STATE LAWS: This Contract complies with the laws of the state in
which it is delivered. Any cash, death, or Annuity payments are equal
to or greater than the minimum required by such laws. Annuity tables
for legal reserve valuation shall be as required by state law. Such
tables may be different from Annuity tables used to determine Annuity
payments.
2.06. CONTROL OF CONTRACT: See Part V.
6
<PAGE>
2.07. DESIGNATION OF BENEFICIARY: See Part V. The beneficiary may be
changed at any time.
2.08. MISSTATEMENTS AND ADJUSTMENTS: If Aetna finds the age of any payee to
be misstated, the correct facts will be used to adjust payments.
2.09. INCONTESTABILITY: Aetna cannot cancel the Contract because of any
error of fact on the application.
2.10. GRACE PERIOD: This Contract will remain in effect even if Purchase
Payments are not continued.
2.11. INDIVIDUAL CERTIFICATES: Aetna shall issue certificates to the
Contract Holder or Participants as required by the state in which this
Contract is delivered. The certificate will summarize certain
provisions of the Contract. Certificates are for information only and
are not a part of the Contract.
7
<PAGE>
III. PURCHASE PAYMENT, CURRENT
VALUE, AND SURRENDER PROVISIONS
3.01. NET PURCHASE PAYMENT(S): The actual Purchase Payment less any
premium tax. As a rule, Aetna will deduct the premium tax when
Annuity benefits are purchased (see Part IV). If Aetna determines
that it must pay a premium tax when Purchase Payments are received or
at any other time, it will deduct the tax at that time.
The Net Purchase Payment(s) will be credited among:
(a) The Fixed Account;
(b) The Guaranteed Accumulation Account; and
(c) The Fund(s) in which the Separate Account invests.
Aetna must be told the percentage of the Net Purchase Payment(s) to be
applied to each investment above.
During any calendar year, Aetna may be told to change the investment
mix four times. If additional changes are allowed, each may be subject
to a fee of up to $10.
3.02. INDIVIDUAL ACCOUNTS: See Part V.
3.03. GUARANTEED ACCUMULATION ACCOUNT (GA ACCOUNT): An accumulation option
which guarantees a stipulated rate of interest for a specified period
of time (see (c) below). Amounts withdrawn before the end of the
Guaranteed Term may be subject to a Market Value Adjustment (see (f)
below).
(a) Guaranteed Deposit Period (Deposit Period) -- The period of time,
usually a calendar month during which Net Purchase Payment(s) are
accepted in the GA Account for a Guaranteed Term.
(b) Guaranteed Term (Term) -- A period of time, including the Deposit
Period, for which interest rates are guaranteed on the Net
Purchase Payment made to the GA Account. The Term may vary for
each Purchase Payment and will be from approximately 1 to 5 years
from the date the Deposit Period ends.
(c) Guaranteed GA Account Interest Rates (Guaranteed Rates ) -- An
interest rate will be declared at the start of a Deposit Period
and guaranteed by Aetna for a Term; this interest rate will never
be less than 4%. Aetna will add interest daily. Aetna may
declare higher interim Guaranteed Rates for:
(1) The Deposit Period and 12 months following the close of a
Deposit Period; and
(2) Any subsequent 12-month period until the end of the Term. The
last period of the Term may be from 10-12 months.
(d) Withdrawals -- Amounts withdrawn from the GA Account before the
end of the Term may be subject to a Market Value Adjustment (see
(f) below). Withdrawals will be made from the Term with the oldest
Deposit Period. During the Deposit Period and the 90 days
following the close of the Deposit Period, any amounts applied to
the GA Account during that Deposit Period may not be withdrawn
unless due to:
(1) A surrender; or
(2) To pay a premium for an Annuity Option.
(e) Reinvestment -- At least 18 days before the end of a Term, the
Contract Holder will be mailed a notice of the next available
Guaranteed Rates and Term. Amounts may be withdrawn from the
ending Term on its final day without Market Value Adjustment.
Aetna must receive written notice of such election at its Home
Office at
8
<PAGE>
least three (3) business days before the end of the Term.
Otherwise, amounts in the ending Term will be added to the new
Term and will be subject to the new Guaranteed Rates. If this
Contract is issued under a Tax Deferred Annuity Plan (see
Specifications page), the above notice will be sent to the
Participant(s).
(f) Market Value Adjustment -- There will be a Market Value Adjustment
for a withdrawal from the GA Account before the end of a Term when
due to:
(1) A transfer;
(2) A surrender; or
(3) A payment of an Annuity premium for Annuity Option 2.
The amount of the withdrawal will be adjusted to a market value amount
as described below. The market value amount will be equal to the
amount withdrawn multiplied by the following ratio:
x
-----
365
(1 + i)
---------------
x
-----
365
(1 + j)
Where:
- i is the Deposit Period Yield;
- j is the Current Yield; and
- x is the number of days from the Wednesday of the week of
withdrawal to the last day of the Term.
The Deposit Period Yield will be determined as follows:
- At the close of the last business day of each week of the
Deposit Period, a yield will be computed as the average of the
yields on that day of U.S. Treasury Notes which mature in the
last quarter of the Term.
- The Deposit Period Yield is then the average of those yields
for the Deposit period. If withdrawal is made prior to the
close of the Deposit Period, it is the average of those yields
on each week preceding withdrawal.
The Current Yield is the average of the yields on the last business
day of the week preceding withdrawal on the same U.S. Treasury Notes
included in the Deposit Period Yield.
In the event that no U.S. Treasury Notes exist which mature in the
last quarter of the Term, Aetna reserves the right to use the next
available U.S. Treasury Notes that mature in the following quarter.
There will be no Market Value Adjustment for withdrawals made to:
- Satisfy the terms of the Sum Payable at Death provision; or
- Pay a premium for Annuity Options 3 or 4.
Aetna may make any change that affects the Market Value Adjustment
with at least 30 days advance written notice to the Contract Holder.
Any such change shall become effective for any new Term and for any
present or future Participant.
3.04. GUARANTEED INTEREST RATE -- FIXED ACCOUNT: On any Net Purchase
Payment(s) made to the Fixed Account, Aetna will add interest daily at
any annual rate no less than 4%. Aetna may add interest daily at any
higher rate determined by its Board of Directors.
3.05. EXPERIENCE CREDITS: Aetna may apply Experience Credits under this
Contract. Any such Credit will be computed as decided by Aetna.
9
<PAGE>
3.06. MAINTENANCE FEE: See Part V.
3.07. FUND(S) RECORD UNITS -- SEPARATE ACCOUNT: The portion of the Net
Purchase Payment(s) applied to the Separate Account will determine the
number of Fund(s) Record Units. This number is equal to the Net
Purchase Payment applied to the Fund divided by the Fund Record Unit
Value (see 3.09) for the Valuation Period in which the Purchase
Payment is received in good order.
3.08. NET RETURN FACTOR(S) -- SEPARATE ACCOUNT: The Net Return Factors are
used to compute all Separate Account values and payments for any Fund.
The Net Return Factor for each Fund is equal to 1.0000000 plus the Net
Return Rate.
The Net Return Rate is equal to:
(a) The value of the shares of the Fund held by the Separate Account
at the end of a Valuation Period; minus
(b) The value of the shares of the Fund held by the Separate Account
at the start of the Valuation Period; plus or minus
(c) Taxes (or reserves for taxes) on the Separate Account (if any);
divided by
(d) The total value of the Fund Record Units and Fund Annuity Units of
the Separate Account (see 3.09 and 4.05) at the start of the
Valuation Period; minus
(e) A daily actuarial charge at an annual rate of 1.25% for Annuity
mortality and expense risks and profit and a daily administrative
charge which will not exceed .25% on an annual basis.
A Net Return Rate may be more or less than 0.
The value of a share of the Fund is equal to the net assets of the
Fund divided by the number of shares outstanding.
The administrative charge may be changed annually except for amounts
which have been used to purchase an Annuity. This charge will not
exceed .25%.
3.09. FUND(S) RECORD UNIT VALUE -- SEPARATE ACCOUNT: A Fund(s) Record Unit
Value is computed by multiplying the Net Return Factor for the current
Valuation Period by the Fund(s) Record Unit Value for the previous
Period. The dollar value of a Fund(s) Record Unit, Separate Account
assets, and Variable Annuity payments may go up or down due to
investment gain or loss.
3.10. CURRENT VALUE: The Current Value (See Part V) is equal to:
(a) Any amounts in the Fixed Account, including Fixed Account interest
added by Aetna; plus
(b) Any amounts in the GA Account, including GA Account interest added
by Aetna; plus
(c) The sum of any Separate Account Record Unit value(s); plus
(d) Any amount due to Experience Credits; less
(e) Any Maintenance Fee(s) due.
Current Value does not include amounts used to purchase an Annuity.
3.11. TRANSFER OF CURRENT VALUE FROM THE FUNDS OR GA ACCOUNT: Before an
Annuity Option is elected, all or any portion of the Current Value may
be transferred from any Fund to any other
10
<PAGE>
Fund, to the Fixed Account, or to the GA Account's current Deposit
Period. Any portion of the Current Value in the GA Account may be
transferred to any Fund or to the Fixed Account. Transfers from the
GA Account are subject to the Withdrawal and Market Value Adjustment
provisions. (See 3.03)
Four transfers of Current Value (excluding transfers from the GA
Account at the end of a Guaranteed Term) can be made during a calendar
year period. If additional transfers are allowed, each may be subject
to a fee of up to $10.
3.12. TRANSFER OF CURRENT VALUE FROM THE FIXED ACCOUNT: 10% of the Current
Value held in the Fixed Account may be transferred to any Fund(s) or
to the GA Account's current Deposit Period. Such transfer will be:
(a) Without charge;
(b) Allowed once per calendar year; and
(c) Not allowed under an Annuity Option.
Aetna may, on a temporary basis, allow any larger percent to be
transferred.
The Current Value of the Fixed Account, as used above, is the value
when the request is received at the Home Office of Aetna.
3.13. NOTICE TO THE CONTRACT HOLDER: Aetna will notify the Contract Holder
each year of:
(a) The Value of any amounts held in:
(1) The Fixed Account;
(2) The GA Account; and
(3) The Fund(s) for the Separate Ac-count; and
(b) The number of any Fund(s) Record Units; and
(c) The Fund(s) Record Unit Value(s).
Such number or values will be as of a date no more than 60 days before
the date of the notice.
If this Contract is issued for a Tax Deferred Annuity Plan, the above
notice will be sent to each Participant.
3.14. SUM PAYABLE AT DEATH (BEFORE ANNUITY PAYMENTS START): See Part V.
3.15. SURRENDER VALUE: See Part V.
3.16. PAYMENT OF SURRENDER VALUE: Under certain emergency conditions, Aetna
may defer payment;
(a) For a period of up to 6 months (unless not allowed by state law);
or
(b) As provided by federal law.
Aetna may pay any Fixed Account Surrender Value with interest in equal
payments over a period not to exceed 60 months when the amounts held
in the Fixed Account under this Contract exceed $500,000. This will
apply only if the sum of the amounts surrendered within the past 12
months exceeds 20% of such Fixed Account amount.
Interest, as used above, will not be more than two percentage points
below any rate determined prospectively by the Board of Directors for
this class of Contract. In no event, will the interest rate be less
than 4%.
3.17. REINSTATEMENT: All or a portion of the proceeds of a full surrender
of this Contract may be reinvested within 30 days after the surrender
if allowed by law. Any Maintenance Fee and Surrender Fee charged a
the time of surrender on the amount being reinvested will be included
in the reinstate-
11
<PAGE>
ment. Any Market Value Adjustment deducted from GA Account surrenders
will not be included in the reinstatement. Amounts will be reinstated
among the Fixed Account, GA Account, and Separate Account in the same
proportion as they were at the time of surrender. Any amounts
reinstated to the GA Account will be credited to the current Deposit
Period. The number of Record Units reinstated will be based on the
Record Unit Value(s) next computed after receipt at Aetna's Home
Office of the reinstatement request and the amount to be reinvested.
Any Maintenance Fee which falls due after the surrender and before the
reinstatement will be deducted from the amount reinstated.
Reinstatement is permitted only once.
12
<PAGE>
IV. ANNUITY PROVISIONS
4.01. CHOICES TO BE MADE: An Annuity Option may be elected by telling Aetna
to pay all or any portion of the Current Value (minus any premium tax)
as a premium for an Annuity under Option 2, 3, or 4 (see 4.06). The
first Annuity payment must generally be made no later than the first
day of the month following the Annuitant's 75th birthday. Aetna may
be told to make the first Annuity payment during any prior month.
When an Option is chosen, Aetna must also be told if payments are to
be made other than monthly and to pay:
(a) A Fixed Annuity using the General Account;
(b) A Variable Annuity using any of the Fund(s) made available by
Aetna for Annuity purposes; or
(c) A combination of (a) and (b).
If a Fixed Annuity is chosen, Aetna will add interest daily at an
annual rate no less than 3.5%. Aetna may add interest daily at any
higher rate.
If a Variable Annuity is chosen, an Assumed Annual Net Return Rate of
5% may be chosen. If not chosen, Aetna will use an Assumed Annual Net
Return Rate of 3.5%.
4.02. TERMS OF ANNUITY OPTIONS:
(a) When payments start, the age of the Annuitant plus the number of
years for which payments are guaranteed must not exceed 95.
(b) The present value of the expected payments to the Annuitant when
payments start shall be more than 50% of the present value of the
total expected payments to be made; this restriction does not
apply if Option 4 is chosen and the second Annuitant is the spouse
of the Annuitant.
(c) No choice of any Annuity Option may be made if the first payment
would be less than $20 or if the total payments in a year would be
less than $100.
(d) If a Fixed Annuity under Option 2, 3 or 4 is chosen and a larger
payment would result from applying the Surrender Value to a
current Aetna single premium immediate annuity, Aetna will make
the larger payment.
(e) Age, where used in the following tables, means age on the birthday
closest to the date of the first payment.
The Annuity rates for Options 3 and 4 are based on mortality from
1983 Table a. The Annuity rates do not differ by sex.
(f) Assumed Annual Net Return Rate is the interest rate used to
determine the amount of the first Annuity payment under a Variable
Annuity. The Separate Account must earn this rate plus enough to
cover the mortality and expense risk and administrative fee
charges if future Variable Annuity payments are to remain level.
4.03. DEATH OF ANNUITANT/BENEFICIARY: When an Annuitant dies under Options 2
and 3, the present value of any remaining guaranteed payments will be
paid in one sum to the beneficiary, or upon election by the
beneficiary, any remaining payments will continue to the beneficiary.
If no beneficiary exists, the present value of any remaining
guaranteed payments will be paid in one sum to the estate of the
Annuitant.
If a beneficiary dies while under Option 1 or while receiving Annuity
payments, the present value of any remaining payments will be paid in
one sum to the estate of the beneficiary. The interest rate used to
determine the first payment will be used to calculate the present
value.
13
<PAGE>
4.04. FUND(S) ANNUITY UNITS -- SEPARATE ACCOUNT: The number of Fund(s)
Annuity Units is based on the amount of the first Variable Annuity
payment which is equal to:
(a) The portion of the Current Value (minus any premium tax) applied
to pay a Variable Annuity; divided by
(b) 1,000; multiplied by
(c) The payment rate for the Option chosen.
Such amount, or portion, of the Variable Payment will be divided by
the appropriate Fund(s) Annuity Unit Value (see 4.05) on the tenth
Valuation Period before the due date of the first payment to determine
the number of each Fund Annuity Units. The number of each Fund
Annuity Units remains fixed. Each future payment is equal to the sum
of the products of each Fund Annuity Unit Value multiplied by the
appropriate number of Units. The Fund Annuity Unit Value on the tenth
Valuation Period prior to the due date of the payment is used.
4.05. FUND(S) ANNUITY UNIT VALUE -- SEPARATE ACCOUNT: For any Valuation
Period, a Fund(s) Annuity Unit Value is equal to:
(a) The Value for the previous Period; multiplied by
(b) The Net Return Factor(s) (see 3.08) for the Period; multiplied by
(c) A factor to reflect the Assumed Annual Net Return Rate.
The factor for 3.5% per year is .9999058; for 5% per year it is
.9998663.
The dollar value of a Fund(s) Annuity Unit Values and payments may go
up or down due to investment gain or loss.
If Variable Annuity payments are not to decrease, Aetna must earn a
gross return on the assets of the Separate Account of:
- 4.75% on an annual basis plus an annual return of up to .25%
needed to offset the administrative charge set at the time
Annuity payments commence if an Assumed Annual Net Return Rate
of 3.5% is chosen; or
- 6.25% on an annual basis plus an annual return of up to .25%
needed to offset the administrative charge set at the time
Annuity payments commence if an Assumed Annual Net Return Rate
of 5% is chosen.
Payments shall not be changed due to changes in the mortality or
expense results or administrative charges.
4.06. ANNUITY OPTIONS:
Option 1 -- Payment of Interest on Sum Left with Aetna -- This Option
may be used only by the beneficiary when the Participant dies before
Aetna has started paying an Annuity. A portion or all of the sum paid
upon death may be held under this Option and will be held in the
General Account of Aetna at interest (see 4.01). The beneficiary may
later tell Aetna to:
(a) Pay a portion or all of the sum held by Aetna; or
(b) Apply a portion or all of the sum held by Aetna to any Annuity
Option below.
Option 2 -- Payments for a Stated Period of Time -- An Annuity will be
paid for the number of years chosen. The number of years must be at
least 3 and not more than 30. This Option can only be elected on a
fixed basis.
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<PAGE>
Option 3 -- Life Income -- An Annuity will be paid for the life of the
Annuitant. If also chosen, Aetna will guarantee payments for 60, 120,
180, or 240 months.
Option 4 -- Life Income for Two Payees -- An Annuity will be paid
during the lives of the Annuitant and a second Annuitant. At the
death of either, payments will continue to the survivor. When this
Option is chosen, a choice must be made of:
(a) 100% of the payment to continue to the survivor;
(b) 66 2/3% of the payment to continue to the survivor;
(c) 50% of the payment to continue to the survivor; or
(d) Payments for a minimum of 120 months with 100% of the payment to
continue to the survivor.
Other Options -- Aetna may make other options available as allowed by
the laws of the state in which this Contract is delivered.
15
<PAGE>
OPTION 2
PAYMENTS FOR A STATED PERIOD OF TIME
AMOUNT OF FIRST MONTHLY PAYMENT FOR EACH $1,000
AFTER DEDUCTION OF ANY CHARGE FOR PREMIUM TAXES
Rates for a Fixed Annuity with Guaranteed Interest Rate of 3.5% and
Rates for a Variable Annuity with Assumed Net Return Rate of 3.5%
YEARS OF AMOUNT OF YEARS OF AMOUNT OF YEARS OF AMOUNT OF
PAYMENTS PAYMENTS PAYMENTS PAYMENTS PAYMENTS PAYMENTS
- -------- --------- -------- ---------- --------- ---------
3 $29.19 13 $7.94 22 $5.39
4 22.27 14 7.49 23 5.24
5 18.12 15 7.10 24 5.09
6 15.35 16 6.76 25 4.96
7 13.38 17 6.47 26 4.84
8 11.90 18 6.20 27 4.73
9 10.75 19 5.97 28 4.63
10 9.83 20 5.75 29 4.53
11 9.09 21 5.56 30 4.45
12 8.46
Rates for a Variable Annuity with Assumed Net Return Rate of 5%
YEARS OF AMOUNT OF YEARS OF AMOUNT OF YEARS OF AMOUNT OF
PAYMENTS PAYMENTS PAYMENTS PAYMENTS PAYMENTS PAYMENTS
- -------- --------- -------- ---------- --------- ---------
3 $29.80 13 $8.64 22 $6.17
4 22.89 14 8.20 23 6.02
5 18.74 15 7.82 24 5.88
6 15.99 16 7.49 25 5.76
7 14.02 17 7.20 26 5.65
8 12.56 18 6.94 27 5.54
9 11.42 19 6.71 28 5.45
10 10.51 20 6.51 29 5.36
11 9.77 21 6.33 30 5.28
12 9.16
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<PAGE>
OPTION 3
LIFE INCOME
AMOUNT OF FIRST MONTHLY PAYMENT FOR EACH $1,000
AFTER DEDUCTION OF ANY CHARGE FOR PREMIUM TAXES
Rates for a Fixed Annuity with Guaranteed Interest Rate of 3.5% and
Rates for a Variable Annuity with Assumed Net Return Rate of 3.5%
PAYMENTS GUARANTEED FOR A STATED PERIOD OF MONTHS
-------------------------------------------------
AGE OF
ANNUITANT NONE 60 120 180 240
- --------- ---- ---- ----- ----- -----
50 $4.34 $4.34 $4.31 $4.27 $4.22
51 4.41 4.40 4.38 4.33 4.27
52 4.48 4.47 4.45 4.40 4.32
53 4.56 4.55 4.52 4.46 4.38
54 4.64 4.63 4.59 4.53 4.44
55 4.72 4.71 4.67 4.60 4.50
56 4.81 4.80 4.75 4.67 4.56
57 4.91 4.89 4.84 4.75 4.62
58 5.01 4.99 4.93 4.83 4.69
59 5.12 5.10 5.03 4.92 4.75
60 5.23 5.21 5.13 5.00 4.82
61 5.36 5.33 5.24 5.09 4.88
62 5.49 5.45 5.35 5.19 4.95
63 5.63 5.59 5.47 5.28 5.02
64 5.78 5.73 5.60 5.38 5.08
65 5.94 5.89 5.73 5.48 5.15
66 6.11 6.05 5.87 5.58 5.21
67 6.29 6.22 6.02 5.69 5.27
68 6.49 6.41 6.17 5.79 5.33
69 6.70 6.60 6.33 5.90 5.38
70 6.92 6.81 6.49 6.00 5.43
71 7.17 7.04 6.66 6.10 5.48
72 7.43 7.27 6.84 6.20 5.52
73 7.71 7.53 7.02 6.30 5.55
74 8.02 7.80 7.20 6.39 5.59
75 8.35 8.08 7.38 6.48 5.62
Rate for ages not shown will be provided on request and will be computed
on a basis consistent with the rates in the above tables.
17
<PAGE>
OPTION 3
LIFE INCOME
AMOUNT OF FIRST MONTHLY PAYMENT FOR EACH $1,000
AFTER DEDUCTION OF ANY CHARGE FOR PREMIUM TAXES
Rates for a Variable Annuity with Assumed Net Return Rate of 5.0%
PAYMENTS GUARANTEED FOR A STATED PERIOD OF MONTHS
-------------------------------------------------
AGE OF
ANNUITANT NONE 60 120 180 240
- --------- ---- ---- ----- ----- -----
50 $5.26 $5.25 $5.22 $5.17 $5.11
51 5.33 5.32 5.28 5.23 5.15
52 5.40 5.38 5.34 5.29 5.20
53 5.47 5.45 5.41 5.35 5.26
54 5.54 5.53 5.48 5.41 5.31
55 5.63 5.61 5.56 5.47 5.36
56 5.71 5.69 5.63 5.54 5.42
57 5.80 5.78 5.72 5.61 5.47
58 5.90 5.88 5.81 5.69 5.53
59 6.01 5.98 5.90 5.77 5.59
60 6.12 6.09 6.00 5.85 5.65
61 6.24 6.21 6.10 5.93 5.71
62 6.37 6.33 6.21 6.02 5.77
63 6.51 6.46 6.33 6.11 5.83
64 6.66 6.60 6.45 6.20 5.89
65 6.82 6.75 6.57 6.30 5.95
66 6.99 6.91 6.71 6.39 6.01
67 7.17 7.08 6.85 6.49 6.06
68 7.36 7.27 6.99 6.59 6.12
69 7.57 7.46 7.15 6.69 6.17
70 7.80 7.67 7.30 6.78 6.21
71 8.05 7.89 7.47 6.88 6.25
72 8.31 8.13 7.64 6.97 6.29
73 8.59 8.38 7.81 7.06 6.33
74 8.90 8.64 7.99 7.15 6.36
75 9.23 8.93 8.16 7.23 6.38
Rate for ages not shown will be provided on request and will be computed
on a basis consistent with the rates in the above tables.
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<PAGE>
OPTION 4
LIFE INCOME FOR TWO PAYEES
JOINT AND LAST SURVIVOR ANNUITY
100% TO THE SURVIVOR
NO MINIMUM PERIOD
AMOUNT OF FIRST MONTHLY PAYMENT FOR EACH $1,000
AFTER DEDUCTION OF ANY CHARGE FOR PREMIUM TAXES
Rates for a Fixed Annuity with Guaranteed Interest Rate of 3.5% and
Rates for a Variable Annuity with Assumed Net Return Rate of 3.5%
AGE OF SECOND ANNUITANT
-----------------------
AGE OF
ANNUITANT 45 50 55 60 65 70 75 80 85
- --------- ----- ---- ---- ---- ---- ---- ---- ---- ----
45 $3.69 $3.75 $3.81 $3.84 $3.87 $3.90 $3.91 $3.92 $3.92
50 3.75 3.89 3.97 4.04 4.09 4.13 4.15 4.17 4.18
55 3.81 3.97 4.16 4.27 4.35 4.42 4.47 4.50 4.51
60 3.84 4.04 4.27 4.51 4.66 4.78 4.86 4.92 4.95
65 3.87 4.09 4.35 4.66 4.99 5.19 5.35 5.46 5.53
70 3.90 4.13 4.42 4.78 5.19 5.67 5.95 6.17 6.31
75 3.91 4.15 4.47 4.86 5.35 5.95 6.64 7.04 7.34
80 3.92 4.17 4.50 4.92 5.46 6.17 7.04 8.04 8.63
85 3.92 4.18 4.51 4.95 5.53 6.31 7.34 8.63 10.05
Rates for a Variable Annuity with Assumed Net Return Rate of 5%
AGE OF SECOND ANNUITANT
-----------------------
AGE OF
ANNUITANT 45 50 55 60 65 70 75 80 85
- --------- ----- ---- ---- ---- ---- ---- ---- ---- ----
45 $4.63 $4.68 $4.73 $4.77 $4.80 $4.82 $4.84 $4.85 $4.86
50 4.68 4.80 4.88 4.95 5.00 5.04 5.06 5.08 5.10
55 4.73 4.88 5.04 5.15 5.24 5.30 5.35 5.39 5.41
60 4.77 4.95 5.15 5.37 5.52 5.63 5.72 5.79 5.83
65 4.80 5.00 5.24 5.52 5.83 6.04 6.20 6.31 6.39
70 4.82 5.04 5.30 5.63 6.04 6.49 6.77 6.99 7.15
75 4.84 5.06 5.35 5.72 6.20 6.77 7.45 7.86 8.16
80 4.85 5.08 5.39 5.79 6.31 6.99 7.86 8.84 9.43
85 4.86 5.10 5.41 5.83 6.39 7.15 8.16 9.43 10.86
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<PAGE>
OPTION 4
LIFE INCOME FOR TWO PAYEES
JOINT AND LAST SURVIVOR ANNUITY
66 2/3% TO THE SURVIVOR
NO MINIMUM PERIOD
AMOUNT OF FIRST MONTHLY PAYMENT FOR EACH $1,000
AFTER DEDUCTION OF ANY CHARGE FOR PREMIUM TAXES
Rates for a Fixed Annuity with Guaranteed Interest Rate of 3.5% and
Rates for a Variable Annuity with Assumed Net Return Rate of 3.5%
AGE OF SECOND ANNUITANT
-----------------------
AGE OF
ANNUITANT 45 50 55 60 65 70 75 80 85
- --------- ----- ---- ---- ---- ---- ---- ---- ---- ----
45 $3.94 $4.05 $4.18 $4.32 $4.48 $4.66 $4.84 $5.02 $5.19
50 4.05 4.20 4.35 4.51 4.69 4.89 5.09 5.30 5.49
55 4.18 4.35 4.54 4.73 4.95 5.18 5.42 5.65 5.87
60 4.32 4.51 4.73 4.99 5.25 5.53 5.82 6.11 6.37
65 4.48 4.69 4.95 5.25 5.61 5.97 6.33 6.69 7.02
70 4.66 4.89 5.18 5.53 5.97 6.49 6.96 7.43 7.88
75 4.84 5.09 5.42 5.82 6.33 6.96 7.73 8.39 9.02
80 5.02 5.30 5.65 6.11 6.69 7.43 8.39 9.54 10.46
85 5.19 5.49 5.87 6.37 7.02 7.88 9.02 10.46 12.15
Rates for a Variable Annuity with Assumed Net Return Rate of 5%
AGE OF SECOND ANNUITANT
-----------------------
AGE OF
ANNUITANT 45 50 55 60 65 70 75 80 85
- --------- ----- ---- ---- ---- ---- ---- ---- ---- ----
45 $4.87 $4.99 $5.12 $5.27 $5.44 $5.64 $5.86 $6.09 $6.30
50 4.99 5.12 5.26 5.43 5.63 5.85 6.09 6.33 6.57
55 5.12 5.26 5.44 5.63 5.85 6.11 6.38 6.65 6.92
60 5.27 5.43 5.63 5.87 6.14 6.44 6.75 7.07 7.38
65 5.44 5.63 5.85 6.14 6.49 6.84 7.23 7.62 8.00
70 5.64 5.85 6.11 6.44 6.84 7.35 7.84 8.34 8.83
75 5.86 6.09 6.38 6.75 7.23 7.84 8.60 9.28 9.93
80 6.09 6.33 6.65 7.07 7.62 8.34 9.28 10.42 11.35
85 6.30 6.57 6.92 7.38 8.00 8.83 9.93 11.35 13.04
20
<PAGE>
OPTION 4
LIFE INCOME FOR TWO PAYEES
JOINT AND LAST SURVIVOR ANNUITY
50% TO THE SURVIVOR
NO MINIMUM PERIOD
AMOUNT OF FIRST MONTHLY PAYMENT FOR EACH $1,000
AFTER DEDUCTION OF ANY CHARGE FOR PREMIUM TAXES
Rates for a Fixed Annuity with Guaranteed Interest Rate of 3.5% and
Rates for a Variable Annuity with Assumed Net Return Rate of 3.5%
AGE OF SECOND ANNUITANT
-----------------------
AGE OF
ANNUITANT 45 50 55 60 65 70 75 80 85
- --------- ----- ---- ---- ---- ---- ---- ---- ---- ----
45 $4.07 $4.22 $4.40 $4.61 $4.87 $5.17 $5.49 $5.84 $6.18
50 4.22 4.37 4.56 4.79 5.06 5.39 5.75 6.13 6.51
55 4.40 4.56 4.76 5.00 5.31 5.66 6.06 6.49 6.91
60 4.61 4.79 5.00 5.27 5.61 6.01 6.46 6.95 7.43
65 4.87 5.06 5.31 5.61 5.99 6.44 6.96 7.54 8.11
70 5.17 5.39 5.66 6.01 6.44 6.99 7.61 8.29 9.00
75 5.49 5.75 6.06 6.46 6.96 7.61 8.43 9.29 10.17
80 5.84 6.13 6.49 6.95 7.54 8.29 9.29 10.54 11.71
85 6.18 6.51 6.91 7.43 8.11 9.00 10.17 11.71 13.57
Rates for a Variable Annuity with Assumed Net Return Rate of 5%
AGE OF SECOND ANNUITANT
-----------------------
AGE OF
ANNUITANT 45 50 55 60 65 70 75 80 85
- --------- ----- ---- ---- ---- ---- ---- ---- ---- ----
45 $5.01 $5.15 $5.33 $5.56 $5.83 $6.17 $6.55 $6.98 $7.40
50 5.15 5.29 5.48 5.71 6.01 6.36 6.78 7.23 7.68
55 5.33 5.48 5.66 5.91 6.23 6.61 7.05 7.54 8.05
60 5.56 5.71 5.91 6.16 6.51 6.93 7.42 7.96 8.53
65 5.83 6.01 6.23 6.51 6.87 7.34 7.89 8.51 9.16
70 6.17 6.36 6.61 6.93 7.34 7.87 8.51 9.23 10.00
75 6.55 6.78 7.05 7.42 7.89 8.51 9.33 10.20 11.14
80 6.98 7.23 7.54 7.96 8.51 9.23 10.20 11.44 12.64
85 7.40 7.68 8.05 8.53 9.16 10.00 11.14 12.64 14.51
21
<PAGE>
OPTION 4
LIFE INCOME FOR TWO PAYEES
JOINT AND LAST SURVIVOR ANNUITY
100% TO THE SURVIVOR
120 MONTHS MINIMUM PERIOD
AMOUNT OF FIRST MONTHLY PAYMENT FOR EACH $1,000
AFTER DEDUCTION OF ANY CHARGE FOR PREMIUM TAXES
Rates for a Fixed Annuity with Guaranteed Interest Rate of 3.5% and
Rates for a Variable Annuity with Assumed Net Return Rate of 3.5%
AGE OF SECOND ANNUITANT
-----------------------
AGE OF
ANNUITANT 45 50 55 60 65 70 75 80 85
- --------- ----- ---- ---- ---- ---- ---- ---- ---- ----
45 $3.69 $3.75 $3.80 $3.84 $3.87 $3.89 $3.91 $3.91 $3.92
50 3.75 3.89 3.97 4.04 4.09 4.13 4.15 4.16 4.17
55 3.80 3.97 4.15 4.26 4.35 4.41 4.46 4.48 4.49
60 3.84 4.04 4.26 4.50 4.65 4.76 4.84 4.89 4.91
65 3.87 4.09 4.35 4.65 4.98 5.17 5.31 5.41 5.46
70 3.89 4.13 4.41 4.76 5.17 5.62 5.87 6.05 6.15
75 3.91 4.15 4.46 4.84 5.31 5.87 6.48 6.79 6.98
80 3.91 4.16 4.48 4.89 5.41 6.05 6.79 7.50 7.83
85 3.92 4.17 4.49 4.91 5.46 6.15 6.98 7.83 8.50
Rates for a Variable Annuity with Assumed Net Return Rate of 5%
AGE OF SECOND ANNUITANT
-----------------------
AGE OF
ANNUITANT 45 50 55 60 65 70 75 80 85
- --------- ----- ---- ---- ---- ---- ---- ---- ---- ----
45 $4.63 $4.68 $4.73 $4.77 $4.80 $4.82 $4.84 $4.85 $4.85
50 4.68 4.80 4.88 4.94 4.99 5.03 5.06 5.07 5.08
55 4.73 4.88 5.04 5.14 5.23 5.29 5.34 5.37 5.38
60 4.77 4.94 5.14 5.37 5.51 5.62 5.70 5.75 5.78
65 4.80 4.99 5.23 5.51 5.82 6.00 6.15 6.24 6.30
70 4.82 5.03 5.29 5.62 6.00 6.44 6.68 6.86 6.96
75 4.84 5.06 5.34 5.70 6.15 6.68 7.27 7.57 7.76
80 4.85 5.07 5.37 5.75 6.24 6.86 7.57 8.26 8.58
85 4.85 5.08 5.38 5.78 6.30 6.96 7.76 8.58 9.23
22
<PAGE>
V. SPECIAL PROVISIONS
The Special Provisions section which applies to this Contract is shown
on the Specifications page under Type of Plan. The other sections
under Special Provisions do not apply.
5.01. DEFERRED COMPENSATION PLAN
(a) Control of Contract: All rights in this Contract rest with the
Contract Holder, who is entitled to all amounts held under this
Contract. The Contract Holder, or authorized designee of the
Contract Holder (as allowed by law), may make any choices allowed
by this Contract with respect to Individual Accounts. Any choices
made under this Contract must be in writing. Until receipt of such
choices in its Home Office, Aetna may rely on any prior choices
made. This Contract and any Individual Accounts are not subject
to the claims of any creditors of Participants except to the
extent permitted by law.
(b) Designation of Beneficiary: The beneficiary shall be the
Contract Holder.
(c) Individual Accounts: Aetna will maintain Individual Account(s) as
instructed by the Contract Holder. In addition to any Purchase
Payments stated to be made under this Contract, a lump-sum
Purchase Payment(s), of not less than a minimum amount stated by
Aetna, may be made on behalf of one or more Participants. Aetna
may maintain an Individual Account for each lump-sum payment.
(d) Maintenance Fee: The Maintenance Fee (see 6.01) will be deducted
from the Current Value on the anniversary of the Individual
Account Effective Date and on surrender of the entire Individual
Account.
(e) Current Value: The Current alue as determined in 3.10 of an
Individual Ac-count at the end of a Valuation Period.
(f) Sum Payable at Death (Before Annuity Payments Start): Aetna will
pay the Current Value as directed by the Con-tract Holder if:
(1) The Participant dies before Annuity payments start; and
(2) The notice of death is received in good order by Aetna.
The sum paid will be the Current Value on the date the notice is
received at Aetna's Home Office. The amount paid from the Fixed
Account will not be less than the Net Purchase Payments allocated
for the Participant (less any prior transfers (see 3.12),
surrenders, Maintenance Fees, or amounts used to purchase Annuity
Options). The beneficiary may choose to apply all or any part of
the proceeds to an Annuity Option (see Part IV).
(g) Surrender Value: After deduction of the Maintenance Fee (if any),
Aetna will reduce the amount payable upon sur-render of any
portion of the Individual Account(s) by a Surrender Fee. The
Surrender Fee will be in accordance with the Surrender Fee table
in 6.02.
The Fee on a total surrender of an Individual Account will not
exceed 8.5% of the Purchase Payments made to that Account.
(h) The following sections 5.02, 5.03, 5.04 and 5.05 of the Special
Provisions do not apply to this Contract.
23
<PAGE>
5.02. ALLOCATED PENSION OR PROFIT SHARING PLAN
(a) The preceding section 5.01 of the Special Provisions does not
apply to this Contract.
(b) Control of Contract: All rights in this Contract rest with the
Contract Holder. The Contract Holder owns all amounts held under
this Contract. The Contract Holder, or authorized designee of the
Contract Holder (as allowed by law), may make any choices allowed
by this Contract with respect to Individual Accounts. Any choices
under this Contract must be in writing. Until receipt of such
choices in its Home Office, Aetna may rely on any prior choices
made. This Contract and any Individual Accounts are not subject
to the claims of any creditors except to the extent per-mitted by
law.
Any payment(s) made under this Contract to other than the Contract
Holder must be in compliance with the provisions of the Retirement
Equity Act of 1984 (Act). At the time payment is requested or an
Annuity Option is elected by the Contract Holder, Aetna will
require the Contract Holder to certify the payment option is
elected in compliance with the Act. In the absence of such
certification, payment will be made to the Contract Holder.
(c) Designation of Beneficiary: The beneficiary shall be the Contract
Holder.
(d) Individual Accounts: If instructed by the Contract Holder, Aetna
will maintain two Individual Accounts for each Participant; these
will be a Participant's In-dividual Account for crediting employee
Net Purchase Payments and a Plan Individual Account for crediting
employer Net Purchase Payments.
(e) Maintenance Fee: The Maintenance Fee (see 6.01) will be deducted
from the Current Value on each anniversary of the Individual
Account Effective Date and upon surrender of the entire Individual
Account.
(f) Current Value: The Current Value as determined in 3.10 of an
Individual Account at the end of a Valuation Period.
(g) Sum Payable at Death (Before Annuity Payments Start): Aetna will
pay the Current Value to the beneficiary if:
(1) The Participant dies before Annuity payments start; and
(2) The notice of death is received in good order by Aetna.
The sum paid will be the Current Value of the Participant's
Individual Account on the date when the notice is received at
Aetna's Home Office. The amount paid from the Fixed Account will
not be less than the Net Purchase Payments allocated to the Fixed
Account under the Participant's Individual Account (less any prior
transfers (see 3.12), surrenders, Maintenance Fees, or amounts
used to purchase Annuity Options). The beneficiary may choose to
apply all or part of the payment to an Annuity Option (see Part
IV).
(h) Surrender Value: After deduction of the Maintenance Fee (if any),
Aetna will reduce the amount payable upon surrender of any portion
of the Individual Account(s) by a Surrender Fee. The Surrender Fee
will be in accordance with the Surrender Fee table in 6.02.
(i) The following sections 5.03, 5.04 and 5.05 of the Special
Provisions do not apply to this Contract.
24
<PAGE>
5.03. UNALLOCATED PENSION OR PROFIT SHARING PLAN
(a) The preceding Sections 5.01 and 5.02 of the Special Provisions do
not apply to this Contract.
(b) Control of Contract: All rights in this Contract rest with the
Contract Holder. The Contract Holder owns all amounts held under
this Contract. The Contract Holder, or authorized designee of the
Contract Holder (as allowed by law), may make any choices allowed
by this Contract. Any choices under this Contract must be in
writing. Until receipt of such choices in its Home Office, Aetna
may rely on any prior choices made. This Contract is not subject
to the claims of any creditor except to the extent permitted by
law.
Any payment(s) made under this Contract to other than the Contract
Holder must be in compliance with the provisions of the Retirement
Equity Act of 1984 (Act). At the time payment is requested or an
Annuity Option is elected by the Contract Holder, Aetna will
require the Contract Holder to certify the payment option is
elected in compliance with the Act. In the absence of such
certification, payment will be made to the Contract Holder.
(c) Designation of Beneficiary: The beneficiary shall be the Contract
Holder.
(d) Individual Accounts: There are no Individual Accounts under this
Contract. Aetna will maintain one unallocated Plan Account in the
name of the Contract Holder to which Net Purchase Payment(s) will
be credited.
(e) Maintenance Fee: The Maintenance Fee (see 6.01) will be deducted
from the Plan Account Current Value on each anniversary of the
Plan Account effective date and on surrender of the entire Plan
Account.
(f) Current Value: The Current Value as determined in 3.10 of the
Plan Account at the end of a Valuation Period.
(g) Sum Payable at Death (Before Annuity Payments Start): Aetna will
pay to the beneficiary any portion of the Plan Account if:
(1) The Participant dies before Annuity payments start; and
(2) The notice of death is received in good order by Aetna.
The beneficiary may choose to apply all or any part of the payment
to an Annuity Option (see Part IV).
(h) Surrender Value: After deduction of the Maintenance Fee (if any),
the amount paid by Aetna upon surrender of any portion of the Plan
Account will be reduced by a Surrender Fee. The Surrender Fee will
be in accordance with the Surrender Fee table in 6.02.
(i) The following Sections 5.04 and 5.05 of the Special Provisions do
not apply to this Contract.
25
<PAGE>
5.04. TAX DEFERRED ANNUITY PLAN
(a) The preceding Sections 5.01, 5.02, and 5.03 of the Special
Provisions do not apply to this Contract.
(b) Control of Contract: This is a Contract between the Contract
Holder and Aetna only to satisfy the "purchase" requirements of
Section 403(b)(1) of the Internal Revenue Code of 1954, as
amended. The Contract Holder has no right, title, or interest in
the amounts held under the Contract either by reason of remitting
Purchase Payments or applying for this Contract.
Each Participant shall own all amounts held in his or her
Individual Account. Each Participant may make any choices allowed
by this Contract for his or her Individual Account. Choices made
under this Contract must be in writing. Until receipt of such
choices in its Home Office, Aetna may rely on any previous choices
made. This Contract and any Individual Accounts shall not e
subject to the claims of any creditors. This Contract and any
Individual Accounts are nonassignable, except to Aetna in the
event of a loan, and non-transferable. In the event a loan
against an Individual Account is requested, however, the Current
Value of the Individual Account necessary to cover the loan amount
plus interest must be assigned to Aetna.
(c) Designation of Beneficiary: Each Participant shall name a
beneficiary.
(d) Individual Accounts: Aetna will maintain an Individual Account
for each Participant. In addition to any Purchase Payments stated
to be made to this Contract, a lump-sum Purchase Payment(s), of
not less than a minimum amount stated by Aetna, may be made on
behalf of one or more Participants. Aetna may maintain an
Individual Account for each lump-sum payment.
(e) Maintenance Fee: The Maintenance Fee (see 6.01) will be deducted
from the Current Value on each anniversary of the Individual
Account Effective Date and upon surrender of the entire Individual
Account.
(f) Current Value: The Current Value as determined in 3.10 of a
Participant's In-dividual Account at the end of a Valuation
Period.
(g) Loan Value: During the Accumulation Period, a Participant may
request a loan from his or her Individual Account Value in place
of a partial withdrawal by submitting a loan request form to
Aetna's Home Office. A loan may not be requested within 12 months
of any prior loan request If the loan meets the requirements
described below, it will not be taxable:
(1) The loan amount must be at least $5,000. The loan amount when
added to the outstanding balance of all previous loans may not
exceed the lesser of:
- One-half of the Individual Account Current Value plus the
outstanding balance of all previous loans under the Plan
Account; or
- $50,000.
Loans can only be made from those Individual Account Values
held in the Fund(s) and the Fixed Account. Loans may not be
made against amounts held in the GA Account although such
values are included in the determination of Individual Account
Value. If a Participant intends to request a loan against any
portion of the GA Ac-count, that portion must be transferred
to any Fund(s) or to the Fixed Account. The transferred
amount will be subject to the Withdrawal and Market Value
Adjustment provisions.
26
<PAGE>
When a loan is made, the number of Accumulation Units equal to
the loan amount will be withdrawn from the Individual Account.
Accumulation Units taken from an Individual Account to provide
a loan do not participate in the investment experience of the
related investment media. Unless instructed otherwise, the
amount withdrawn will be allocated on a pro rata basis among
the Fixed Account and the Fund(s).
(2) Loan interest will accrue on a daily basis at the rate of 3%
annually and must be paid in full each year. The interest
must be paid directly to Aetna by the Participant. If
interest is not paid when due, the entire loan amount plus
interest will be treated as a taxable surrender under the
terms of the Contract.
(3) Repayment of a loan can be made at any time within 5 years
from the date the loan was first made. Any unpaid portion of
a loan must be repaid at the end of 5 years, upon election of
an Annuity Option or upon full surrender of the Individual
Account, whichever occurs first. Aetna may require all
outstanding loans be paid if the Individual Account Value
falls below an amount equal to 25% of total loans outstanding.
Any loan and accrued interest not repaid when due will be
considered a taxable surrender with appropriate deferred sales
charges deducted from the Individual Account Value.
(h) Sum Payable at Death (Before Annuity Payments Start): The Current
Value payable under the terms of this section will be reduced by
the amount of the accrued interest on any outstanding loan. Aetna
will pay the Current Value to the beneficiary if:
(1) The Participant dies before Annuity payments start; and
(2) The notice of death is received in good order by Aetna.
The sum paid will be the Current Value on the date the notice is
received at Aetna's Home Office. The amount paid from the Fixed
Account will not be less than the Net Purchase Payment(s)
allocated to the Fixed Account under the Participant's Individual
Account (less any prior transfers (see 3.12), surrenders,
Maintenance Fees, or amounts used to purchase Annuity Options).
The beneficiary, if a spouse, may choose to apply all or any
portion of the payment to an Annuity Option. If the beneficiary
is not a spouse, all of the payment must either be applied only to
Annuity Option 1 or 2 within one year of the Participant's death
or be paid to the beneficiary within 5 years of the death of the
Participant (see Part IV). If no beneficiary exists, the payment
will be made to the estate of the Participant.
(i) Annuity Payments to Beneficiary: In no event may any payments to
the beneficiary under an Annuity Option extend beyond:
(1) The life of the beneficiary; or
(2) Any certain period greater than the beneficiary's life
expectancy.
(j) Surrender Value: After deduction of the Maintenance Fee (if any),
the amount payable by Aetna upon the surrender of any portion of
the Individual Account(s) shall be reduced by a Surrender Fee.
The Surrender Fee will be in accordance with the Surrender Fee
table in 6.02.
The Fee on a total surrender of an Individual Account will not
exceed 8.5% of the actual Purchase Payments made to that Account.
(k) The following Section 5.05 of the Special Provisions does not
apply to this Contract.
27
<PAGE>
5.05. TAX DEFERRED ANNUITY PLAN (ERISA)
(a) The preceding Sections 5.01, 5.02, 5.03 and 5.04 of the Special
Provisions do not apply to this Contract.
(b) Control of Contract: This is a Contract between the Contract
Holder and Aetna only to satisfy the "purchase" requirements of
Section 403(b)(1) of the Internal Revenue Code of 1954, as
amended. The Contract Holder has no right, title, or interest in
the amounts held under the Contract either by reason of remitting
Purchase Payments or applying for this Contract.
The Contract Holder shall notify Aetna in writing of the
applicability of Title 1 of the Employee Retirement Income
Security Act of 1974 as amended by subsequent law including the
Retirement Equity Act of 1984 (Act) to the Plan. Aetna shall rely
on the Contract Holder's determination and representation of
applicability.
Each Participant shall own all amounts held in his or her
Individual Account. Each Participant may make any choices allowed
by this Contract for his or her Individual Account. Choices made
under this Contract must be in writing. Until receipt of such
choices in its Home Office, Aetna may rely on any previous choices
made. This Contract and any Individual Accounts shall not be
subject to the claims of any creditors. This Contract and any
Individual Accounts are nonassignable, except to Aetna in the
event of a loan or pursuant to a "qualified domestic relations
order" as set forth under the Act, and nontransferable. In the
event a loan against an Individual Account is requested, however,
the Current Value of the Individual Account necessary to cover the
loan amount plus interest must be assigned to Aetna.
(c) Designation of Beneficiary: Each Participant shall name a
beneficiary. However, if the participant is married, Aetna shall
disregard the named beneficiary and shall treat the current spouse
as sole beneficiary if, upon the Participant's death:
(1) The participant had not reached age 35; or
(2) The appropriate preretirement survivor benefit waiver and
spousal consent form have not been submitted to Aetna.
(d) Individual Accounts: Aetna will maintain an Individual Account
for each Participant. In addition to any Purchase Payments stated
to be made to this Contract, a lump-sum Purchase Payment(s), of
not less than a minimum amount stated by Aetna, may be made on
behalf of one or more Participants. Aetna may maintain an
Individual Account for each lump-sum payment.
(e) Maintenance Fee: The Maintenance Fee (see 6.01) will be deducted
from the Current Value on each anniversary of the Individual
Account Effective Date and upon surrender of the entire Individual
Account.
(f) Current Value: The Current Value as determined in 3.10 of a
Participant's Individual Account at the end of a Valuation Period.
(g) Loan Value: During the Accumulation Period, a Participant may
request a loan from his or her Individual Account Value in place
of a partial withdrawal by submitting a loan request form
accompanied by the appropriate waiver and spousal consent forms to
Aetna's Home Office. A loan may not be requested within 12
months of any prior loan request. If the loan meets the
requirements described below, it will not be taxable:
(1) The loan amount must be at least $5,000. The loan amount when
added to the outstanding balance of
28
<PAGE>
all previous loans may not exceed the lesser of:
- One-half of the total Individual Account Current Value plus
the outstanding balance of all previous loans under the Plan
Account; or
- $50,000.
Loans can only be made from those Individual Account Values
held in the Fund(s) and the Fixed Account. Loans may not be
made against amounts held in the GA Account although such
values are included in the determination of Individual Account
Value. If a Participant intends to request a loan against any
portion of the GA Ac-count, that portion must be transferred
to any Fund(s) or to the Fixed Account. The transferred
amount will be subject to the Withdrawal and Market Value
Adjustment provisions.
When a loan is made, the number of Accumulation Units equal to
the loan amount will be withdrawn from the Individual Account.
Accumulation Units taken from an Individual Account to provide
a loan do not participate in the investment experience of the
related investment media. Unless instructed otherwise, the
amount withdrawn will be allocated on a pro rata basis among
the Fixed Account and the Fund(s).
(2) Loan interest will accrue on a daily basis at the rate of 3%
annually and must be paid in full each year. The interest
must be paid directly to Aetna by the Participant. If
interest is not paid when due, the entire loan amount plus
interest will be treated as a taxable surrender under the
terms of the Contract.
(3) Repayment of a loan can be made at any time within 5 years
from the date the loan was first made. Any unpaid portion of a
loan must be repaid at the end of 5 years, upon election of an
Annuity Option or upon full surrender of the Individual
Account, whichever occurs first. Aetna may require all
outstanding loans be paid if the Individual Account Value
falls below an amount equal to 25% of total loans outstanding.
Any loan and accrued interest not repaid when due will be
considered a taxable surrender with appropriate deferred sales
charges deducted from the Individual Account Value.
(h) Sum Payable at Death (Before Annuity Payments Start): The Current
Value payable under the terms of this section will be reduced by
the amount of the accrued interest on any outstanding loan. Aetna
will pay the Current Value to the beneficiary if:
(1) The Participant dies before Annuity payments start; and
(2) The notice of death is received in good order by Aetna.
The sum paid will be the Current Value on the date the notice is
received at Aetna's Home Office. The amount paid from the Fixed
Account will not be less than the Net Purchase Payment(s)
allocated to the Fixed Account under the Participant's Individual
Account (less any prior transfers (see 3.12), surrenders,
Maintenance Fees, or amounts used to purchase Annuity Options).
The beneficiary, if a spouse, may choose to apply all or any
portion of the payment to an Annuity Option. If the beneficiary
is not a spouse, all of the payment must either be applied only to
Annuity Option 1 or 2 within one year of the Participant's death,
or be paid to the beneficiary within 5 years of the death of the
Participant. (see Part IV). If no beneficiary exists, the payment
will be made to the estate of the Participant.
(i) Annuity Payments to Beneficiary: In no event may any payments to
the beneficiary under an Annuity Option extend beyond:
29
<PAGE>
(1) The life of the beneficiary; or
(2) Any certain period greater than the beneficiary's life
expectancy.
(j) Surrender Value: After deduction of the Maintenance Fee (if any),
the amount payable by Aetna upon the surrender of any portion of
the Individual Account(s) shall be reduced by a Surrender Fee.
The Surrender Fee will be in accordance with the Surrender Fee
table in 6.02.
The Fee on a total surrender of an Individual Account will not
exceed 8.5% of the actual Purchase Payments made to that Account.
Aetna may defer payment of the surrender value until appropriate
waiver and spousal consent forms are received.
(k) Annuity Option: Any election of an Annuity Option other than
Option 4 must be accompanied by the appropriate waiver and spousal
consent forms.
30
<PAGE>
[Aetna Logo] AETNA LIFE INSURANCE AND ANNUITY COMPANY
Customer Relations Department, PFSD
HOME OFFICE: 151 FARMINGTON, AVE.
HARTFORD, CONNECTICUT 06156
(203) 273-0123
GROUP VARIABLE, FIXED, OR COMBINATION CONTRACT
NON-PARTICIPATING
ALL PAYMENTS AND VALUES PROVIDED BY THIS CONTRACT,
WHEN BASED ON INVESTMENT EXPERIENCE OF A SEPARATE ACCOUNT,
ARE VARIABLE AND ARE NOT GUARANTEED AS TO FIXED DOLLAR AMOUNT
39355
G-CDA-HF PRINTED IN U.S.A.
<PAGE>
Farmington Avenue Susan E. Bryant
Hartford, CT 06156 Counsel
Law & Regulatory Affairs, RE4C
(203)273-7834
Fax: (203) 273-8340
November 30, 1995
Securities and Exchange Commission
450 Fifth Street, N.W.
Washington, D.C. 20549
Attention: Filing Desk
Re: Variable Annuity Account C of Aetna Life Insurance
and Annuity Company
Pre-Effective Amendment No. 1 on Form N-4
File Nos. 33-88720 and 811-2513
Gentlemen:
The undersigned has acted as counsel to Aetna Life Insurance and Annuity
Company, a Connecticut life insurance company (the "Company") in connection
with the registration on Form N-4 (File No. 33-88720) of interests in
Variable Annuity Account C of the Company. It is my understanding that the
Company, as depositor, has registered an indefinite number of shares of
beneficial interest under the Securities Act of 1933, as amended ("Securities
Act") pursuant to Rule 24f-2 under the Investment Company Act of 1940 (the
"Investment Company Act").
In connection with such representation, I have reviewed the Registration
Statement on Form N-4 filed with the Securities and Exchange Commission on
January 20, 1995 and this Pre-Effective Amendment No. 1 filed on November 30,
1995 (the "Registration Statement"). I have also examined originals or
copies, certified or otherwise identified to my satisfaction, of such
documents, trust records and other instruments I have deemed necessary or
appropriate for the purpose of this opinion. For purposes of such
examination, I have assumed the genuineness of all signatures on original
documents and the conformity to the original documents of all copies.
I am admitted to practice law in Connecticut, New York and Oklahoma, and do
not purport to be an expert on the laws of any other state. My opinion
herein as to any other law is based upon a limited inquiry thereof which I
have deemed appropriate under the circumstances.
Based upon the foregoing, and assuming the Securities are issued and sold in
accordance with the provisions of the prospectus, I am of the opinion that the
Securities when issued, will have been validly issued, and will constitute
legal and binding obligations of the Company.
<PAGE>
November 30, 1995
Page 2
I consent to the filing of this opinion as an exhibit to the Registration
Statement and to my being named under the caption "Legal Matters" in the
prospectus contained therein.
Very truly yours,
/s/ Susan E. Bryant
Susan E. Bryant
Counsel
<PAGE>
Exhibit B.10.1
CONSENT OF INDEPENDENT AUDITORS
The Board of Directors of Aetna Life Insurance and Annuity Company
and Contract Owners of Aetna Variable Annuity Account C:
We consent to the use of our reports dated January 31, 1995 and February 7,
1995 included herein and to the references to our Firm under the captions
"CONDENSED FINANCIAL INFORMATION" in the Prospectus and "INDEPENDENT
AUDITORS" in the Statement of Additional Information.
Our report dated February 7, 1995 refers to a change in 1993 in the Company's
methods of accounting for certain investments in debt and equity securities
and reinsurance contracts, and a change in 1992 in the Company's methods of
accounting for income taxes and post retirement benefits other than pensions.
/s/ KPMG Peat Marwick LLP
------------------------------
KPMG Peat Marwick LLP
Hartford, Connecticut
November 29, 1995
<PAGE>
Exhibit 99.B.13
VARIABLE ANNUITY ACCOUNT C
SCHEDULE FOR COMPUTATION OF TOTAL RETURN CALCULATIONS
TOTAL RETURN CALCULATION (STANDARDIZED)
The standardized rate represents fund performance for the most recent 1-year,
5-year and 10-year periods. The "1-year rate" represents fund performance
for the period January 1, 1994 through December 31,1994; the "5-year rate"
is for the period January 1, 1990 through December 31, 1994; the "10-year
rate" is for the period January 1, 1985 through December 31, 1994.
The formula used in the computation of the total return calculation is as
follows:
T = (ERV/P)1/n where:
T = average annual total return
P = a hypothetical initial payment of $1,000
n = 1 for the "1-year rate," 5 for the "5-year rate," and 10 for the
"10-year rate"
ERV = ending redeemable value of a hypothetical $1,000 payment made at the
beginning of each of the periods
The unit values used in the calculation reflect the deduction of all
recurring charges during each period (e.g., mortality and expense risk
charges, maintenance fees, administrative charges (if applicable) and
deferred sales charges).
TOTAL RETURN CALCULATION (NON-STANDARDIZED)
The non-standardized rate represents fund performance for the most recent
1-year, 3-year, 5-year and 10-year periods. The "1-year rate" represents
fund performance for the period January 1, 1994 through December 31,1994;
the "3-year rate" is for the period January 1, 1992 through December 31,
1994; the "5-year rate" is for the period January 1, 1990 through December
31, 1994; and the "10-year rate" is for the period January 1, 1985 through
December 31, 1994.
The non-standardized figures will be calculated in a manner similar to the
one discussed above for the standardized figures, except that
non-standardized figures will not reflect the deduction of any applicable
deferred sales charge (which would decrease the level of performance shown if
reflected in these calculations).
For an illustration of the Computation of the Total Return Quotations, both
Standardized and Non-Standardized, see attached.
<PAGE>
Aetna Variable Fund (ACES ACCT C) KANSAS95.CUV
- ------------------------------------------------------------------------------
Gross Deposit: 1000.00
Net Deposit: 1000.00
<TABLE>
<CAPTION>
Redeemable Value
-------------------------------------------------------------------------------------
VARKC95 VARKC95 VARKC95
Nom. 30.00 M.F. (0.058%) Nom. 25.00 M.F. (0.049%) Nom. 20.00 M.F. (0.039%)
# of Years --------------------------- --------------------------- ---------------------------
Ending 12-94 DSC Value IRR MF IRR Value IRR MF IRR Value IRR MF IRR
- ------------ ---- --------- ------ ------ --------- ------ ------ --------- ------ ------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1 0.0% 981.01 -1.90% -1.96% 981.01 -1.90% -1.95% 981.01 -1.90% -1.94%
3 0.0% 1096.19 3.11% 3.05% 1096.19 3.11% 3.06% 1096.19 3.11% 3.07%
5 0.0% 1404.15 7.02% 6.97% 1404.15 7.02% 6.98% 1404.15 7.02% 6.99%
10 0.0% 3264.11 12.56% 12.50% 3264.11 12.56% 12.51% 3264.11 12.56% 12.52%
</TABLE>
- ------------------------------------------------------------------------------
Gross Deposit: 1000.00
Net Deposit: 1000.00
<TABLE>
<CAPTION>
Redeemable Value
-------------------------------------------------------------------------------------
VARKC95 VARKC95 VARKC95
Nom. 15.00 M.F. (0.029%) Nom. 12.50 M.F. (0.024%) Nom. 10.00 M.F. (0.019%)
# of Years --------------------------- --------------------------- ---------------------------
Ending 12-94 DSC Value IRR MF IRR Value IRR MF IRR Value IRR MF IRR
- ------------ ---- --------- ------ ------ --------- ------ ------ --------- ------ ------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1 0.0% 981.01 -1.90% -1.93% 981.01 -1.90% -1.92% 981.01 -1.90% -1.92%
3 0.0% 1096.19 3.11% 3.08% 1096.19 3.11% 3.08% 1096.19 3.11% 3.09%
5 0.0% 1404.15 7.02% 7.00% 1404.15 7.02% 7.00% 1404.15 7.02% 7.01%
10 0.0% 3264.11 12.56% 12.53% 3264.11 12.56% 12.53% 3264.11 12.56% 12.54%
</TABLE>
- ------------------------------------------------------------------------------
Gross Deposit: 1000.00
Net Deposit: 1000.00
<TABLE>
<CAPTION>
Redeemable Value
-------------------------------------------------------------------------------------
VARKC95 VARKC95
Nom. 7.50 M.F. (0.015%) Nom. 5.00 M.F. (0.010%)
# of Years --------------------------- ---------------------------
Ending 12-94 DSC Value IRR MF IRR Value IRR MF IRR
- ------------ ---- --------- ------ ------ --------- ------ ------
<S> <C> <C> <C> <C> <C> <C> <C>
1 0.0% 981.01 -1.90% -1.91% 981.01 -1.90% -1.91%
3 0.0% 1096.19 3.11% 3.09% 1096.19 3.11% 3.10%
5 0.0% 1404.15 7.02% 7.01% 1404.15 7.02% 7.01%
10 0.0% 3264.11 12.56% 12.54% 3264.11 12.56% 12.55%
</TABLE>
Accumulation Unit Values
------------------------------------------------------------
VARKC95
VARKC95.UV
12-99-84 3.725852
12-99-89 8.661183
12-99-91 11.094388
12-99-93 12.397025
12-99-94 12.161601
(Day = 99 means end-of-month.)
<PAGE>
Aetna Income Shares (ACES ACCT C) KANSAS95.CUV
- ------------------------------------------------------------------------------
Gross Deposit: 1000.00
Net Deposit: 1000.00
<TABLE>
<CAPTION>
Redeemable Value
-------------------------------------------------------------------------------------
AISKC95 AISKC95 AISKC95
Nom. 30.00 M.F. (0.058%) Nom. 25.00 M.F. (0.049%) Nom. 20.00 M.F. (0.039%)
# of Years --------------------------- --------------------------- ---------------------------
Ending 12-94 DSC Value IRR MF IRR Value IRR MF IRR Value IRR MF IRR
- ------------ ---- --------- ------ ------ --------- ------ ------ --------- ------ ------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1 0.0% 952.95 -4.71% -4.76% 952.95 -4.71% -4.75% 952.95 -4.71% -4.74%
3 0.0% 1101.85 3.29% 3.23% 1101.85 3.29% 3.24% 1101.85 3.29% 3.25%
5 0.0% 1408.96 7.10% 7.04% 1408.96 7.10% 7.05% 1408.96 7.10% 7.06%
10 0.0% 2414.44 9.21% 9.16% 2414.44 9.21% 9.17% 2414.44 9.21% 9.18%
</TABLE>
- ------------------------------------------------------------------------------
Gross Deposit: 1000.00
Net Deposit: 1000.00
<TABLE>
<CAPTION>
Redeemable Value
-------------------------------------------------------------------------------------
AISKC95 AISKC95 AISKC95
Nom. 15.00 M.F. (0.029%) Nom. 12.50 M.F. (0.024%) Nom. 10.00 M.F. (0.019%)
# of Years --------------------------- --------------------------- ---------------------------
Ending 12-94 DSC Value IRR MF IRR Value IRR MF IRR Value IRR MF IRR
- ------------ ---- --------- ------ ------ --------- ------ ------ --------- ------ ------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1 0.0% 952.95 -4.71% -4.73% 952.95 -4.71% -4.73% 952.95 -4.71% -4.72%
3 0.0% 1101.85 3.29% 3.26% 1101.85 3.29% 3.26% 1101.85 3.29% 3.27%
5 0.0% 1408.96 7.10% 7.07% 1408.96 7.10% 7.07% 1408.96 7.10% 7.08%
10 0.0% 2414.44 9.21% 9.19% 2414.44 9.21% 9.19% 2414.44 9.21% 9.20%
</TABLE>
- ------------------------------------------------------------------------------
Gross Deposit: 1000.00
Net Deposit: 1000.00
<TABLE>
<CAPTION>
Redeemable Value
-------------------------------------------------------------------------------------
AISKC95 AISKC95
Nom. 7.50 M.F. (0.015%) Nom. 5.00 M.F. (0.010%)
# of Years --------------------------- ---------------------------
Ending 12-94 DSC Value IRR MF IRR Value IRR MF IRR
- ------------ ---- --------- ------ ------ --------- ------ ------
<S> <C> <C> <C> <C> <C> <C> <C>
1 0.0% 952.95 -4.71% -4.72% 952.95 -4.71% -4.72%
3 0.0% 1101.85 3.29% 3.27% 1101.85 3.29% 3.28%
5 0.0% 1408.96 7.10% 7.08% 1408.96 7.10% 7.09%
10 0.0% 2414.44 9.21% 9.20% 2414.44 9.21% 9.20%
</TABLE>
Accumulation Unit Values
------------------------------------------------------------
AISKC95
AISKC95.UV
12-99-84 4.510966
12-99-89 7.730161
12-99-91 9.884731
12-99-93 11.429202
12-99-94 10.891469
(Day = 99 means end-of-month.)
<PAGE>
Aetna Encore Fund (ACES ACCT C) KANSAS95.CUV
- ------------------------------------------------------------------------------
Gross Deposit: 1000.00
Net Deposit: 1000.00
<TABLE>
<CAPTION>
Redeemable Value
-------------------------------------------------------------------------------------
ENCKC95 ENCKC95 ENCKC95
Nom. 30.00 M.F. (0.058%) Nom. 25.00 M.F. (0.049%) Nom. 20.00 M.F. (0.039%)
# of Years --------------------------- --------------------------- ---------------------------
Ending 12-94 DSC Value IRR MF IRR Value IRR MF IRR Value IRR MF IRR
- ------------ ---- --------- ------ ------ --------- ------ ------ --------- ------ ------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1 0.0% 1031.11 3.11% 3.05% 1031.11 3.11% 3.06% 1031.11 3.11% 3.07%
3 0.0% 1082.41 2.67% 2.62% 1082.41 2.67% 2.63% 1082.41 2.67% 2.64%
5 0.0% 1226.80 4.17% 4.11% 1226.80 4.17% 4.12% 1226.80 4.17% 4.13%
10 0.0% 1703.33 5.47% 5.41% 1703.33 5.47% 5.42% 1703.33 5.47% 5.43%
</TABLE>
- ------------------------------------------------------------------------------
Gross Deposit: 1000.00
Net Deposit: 1000.00
<TABLE>
<CAPTION>
Redeemable Value
-------------------------------------------------------------------------------------
ENCKC95 ENCKC95 ENCKC95
Nom. 15.00 M.F. (0.029%) Nom. 12.50 M.F. (0.024%) Nom. 10.00 M.F. (0.019%)
# of Years --------------------------- --------------------------- ---------------------------
Ending 12-94 DSC Value IRR MF IRR Value IRR MF IRR Value IRR MF IRR
- ------------ ---- --------- ------ ------ --------- ------ ------ --------- ------ ------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1 0.0% 1031.11 3.11% 3.08% 1031.11 3.11% 3.09% 1031.11 3.11% 3.09%
3 0.0% 1082.41 2.67% 2.65% 1082.41 2.67% 2.65% 1082.41 2.67% 2.66%
5 0.0% 1226.80 4.17% 4.14% 1226.80 4.17% 4.15% 1226.80 4.17% 4.15%
10 0.0% 1703.33 5.47% 5.44% 1703.33 5.47% 5.45% 1703.33 5.47% 5.45%
</TABLE>
- ------------------------------------------------------------------------------
Gross Deposit: 1000.00
Net Deposit: 1000.00
<TABLE>
<CAPTION>
Redeemable Value
-------------------------------------------------------------------------------------
ENCKC95 ENCKC95
Nom. 7.50 M.F. (0.015%) Nom. 5.00 M.F. (0.010%)
# of Years --------------------------- ---------------------------
Ending 12-94 DSC Value IRR MF IRR Value IRR MF IRR
- ------------ ---- --------- ------ ------ --------- ------ ------
<S> <C> <C> <C> <C> <C> <C> <C>
1 0.0% 1031.11 3.11% 3.10% 1031.11 3.11% 3.10%
3 0.0% 1082.41 2.67% 2.66% 1082.41 2.67% 2.66%
5 0.0% 1226.80 4.17% 4.16% 1226.80 4.17% 4.16%
10 0.0% 1703.33 5.47% 5.46% 1703.33 5.47% 5.46%
</TABLE>
Accumulation Unit Values
------------------------------------------------------------
ENCKC95
ENCKC95.UV
12-99-84 6.549630
12-99-89 9.093771
12-99-91 10.306794
12-99-93 10.819649
12-99-94 11.156209
(Day = 99 means end-of-month.)
<PAGE>
AIAF (ACES ACCT C) KANSAS95.CUV
- ------------------------------------------------------------------------------
Gross Deposit: 1000.00
Net Deposit: 1000.00
<TABLE>
<CAPTION>
Redeemable Value
-------------------------------------------------------------------------------------
AIFKC95 AIFKC95 AIFKC95
Nom. 30.00 M.F. (0.058%) Nom. 25.00 M.F. (0.049%) Nom. 20.00 M.F. (0.039%)
# of Years --------------------------- --------------------------- ---------------------------
Ending 12-94 DSC Value IRR MF IRR Value IRR MF IRR Value IRR MF IRR
- ------------ ---- --------- ------ ------ --------- ------ ------ --------- ------ ------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1 0.0% 987.07 -1.29% -1.35% 987.07 -1.29% -1.34% 987.07 -1.29% -1.33%
3 0.0% 1132.04 4.22% 4.16% 1132.04 4.22% 4.17% 1132.04 4.22% 4.18%
5 0.0% 1389.70 6.80% 6.75% 1389.70 6.80% 6.75% 1389.70 6.80% 6.76%
From 06-23-89 0.0% 1452.70 6.99% 6.94% 1452.70 6.99% 6.95% 1452.70 6.99% 6.96%
</TABLE>
- ------------------------------------------------------------------------------
Gross Deposit: 1000.00
Net Deposit: 1000.00
<TABLE>
<CAPTION>
Redeemable Value
-------------------------------------------------------------------------------------
AIFKC95 AIFKC95
Nom. 7.50 M.F. (0.015%) Nom. 5.00 M.F. (0.010%)
# of Years --------------------------- ---------------------------
Ending 12-94 DSC Value IRR MF IRR Value IRR MF IRR
- ------------ ---- --------- ------ ------ --------- ------ ------
<S> <C> <C> <C> <C> <C> <C> <C>
1 0.0% 987.07 -1.29% -1.31% 987.07 -1.29% -1.30%
3 0.0% 1132.04 4.22% 4.21% 1132.04 4.22% 4.21%
5 0.0% 1389.70 6.80% 6.79% 1389.70 6.80% 6.79%
From 06-23-89 0.0% 1452.70 6.99% 6.98% 1452.70 6.99% 6.98%
</TABLE>
Accumulation Unit Values
------------------------------------------------------------
AIFKC95
AIFKC95.UV
06-23-89 7.615822 i
12-99-89 7.961087
12-99-91 9.773076
12-99-93 11.208476
12-99-94 11.063514 i
(Unit values marked "i" are used for from-inception calculations.)
(Day = 99 means end-of-month.)
<PAGE>
Alger Growth (ACES ACCT C) KANSAS95.CUV
- ------------------------------------------------------------------------------
Gross Deposit: 1000.00
Net Deposit: 1000.00
<TABLE>
<CAPTION>
Redeemable Value
-------------------------------------------------------------------------------------
ALGGKC95 ALGGKC95 ALGGKC95
Nom. 30.00 M.F. (0.058%) Nom. 25.00 M.F. (0.049%) Nom. 20.00 M.F. (0.039%)
# of Years --------------------------- --------------------------- ---------------------------
Ending 12-94 DSC Value IRR MF IRR Value IRR MF IRR Value IRR MF IRR
- ------------ ---- --------- ------ ------ --------- ------ ------ --------- ------ ------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1 0.0% 1004.87 0.49% 0.43% 1004.87 0.49% 0.44% 1004.87 0.49% 0.45%
3 0.0% 1356.90 10.71% 10.65% 1356.90 10.71% 10.66% 1356.90 10.71% 10.67%
5 0.0% 1946.39 14.25% 14.19% 1946.39 14.25% 14.20% 1946.39 14.25% 14.21%
From 01-08-89 0.0% 2393.15 15.72% 15.66% 2393.15 15.72% 15.67% 2393.15 15.72% 15.68%
</TABLE>
- ------------------------------------------------------------------------------
Gross Deposit: 1000.00
Net Deposit: 1000.00
<TABLE>
<CAPTION>
Redeemable Value
-------------------------------------------------------------------------------------
ALGGKC95 ALGGKC95 ALGGKC95
Nom. 15.00 M.F. (0.029%) Nom. 12.50 M.F. (0.024%) Nom. 10.00 M.F. (0.019%)
# of Years --------------------------- --------------------------- ---------------------------
Ending 12-94 DSC Value IRR MF IRR Value IRR MF IRR Value IRR MF IRR
- ------------ ---- --------- ------ ------ --------- ------ ------ --------- ------ ------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1 0.0% 1004.87 0.49% 0.46% 1004.87 0.49% 0.46% 1004.87 0.49% 0.47%
3 0.0% 1356.90 10.71% 10.68% 1356.90 10.71% 10.68% 1356.90 10.71% 10.69%
5 0.0% 1946.39 14.25% 14.22% 1946.39 14.25% 14.22% 1946.39 14.25% 14.23%
From 01-08-89 0.0% 2393.15 15.72% 15.69% 2393.15 15.72% 15.69% 2393.15 15.72% 15.70%
</TABLE>
- ------------------------------------------------------------------------------
Gross Deposit: 1000.00
Net Deposit: 1000.00
<TABLE>
<CAPTION>
Redeemable Value
-------------------------------------------------------------------------------------
ALGGKC95 ALGGKC95
Nom. 7.50 M.F. (0.015%) Nom. 5.00 M.F. (0.010%)
# of Years --------------------------- ---------------------------
Ending 12-94 DSC Value IRR MF IRR Value IRR MF IRR
- ------------ ---- --------- ------ ------ --------- ------ ------
<S> <C> <C> <C> <C> <C> <C> <C>
1 0.0% 1004.87 0.49% 0.47% 1004.87 0.49% 0.48%
3 0.0% 1356.90 10.71% 10.69% 1356.90 10.71% 10.70%
5 0.0% 1946.39 14.25% 14.23% 1946.39 14.25% 14.24%
From 01-08-89 0.0% 2393.15 15.72% 15.70% 2393.15 15.72% 15.71%
</TABLE>
Accumulation Unit Values
------------------------------------------------------------
ALGGKC95
ALGGKC95.UV
01-08-89 3.208363 i
12-99-89 3.944777
12-99-91 5.658535
12-99-93 7.640881
12-99-94 7.678092 i
(Unit values marked "i" are used for from-inception calculations.)
(Day = 99 means end-of-month.)
<PAGE>
Alger Small Cap (ACES ACCT C) KANSAS95.CUV
- ------------------------------------------------------------------------------
Gross Deposit: 1000.00
Net Deposit: 1000.00
<TABLE>
<CAPTION>
Redeemable Value
-------------------------------------------------------------------------------------
ALSCKC95 ALSCKC95 ALSCKC95
Nom. 30.00 M.F. (0.058%) Nom. 25.00 M.F. (0.049%) Nom. 20.00 M.F. (0.039%)
# of Years --------------------------- --------------------------- ---------------------------
Ending 12-94 DSC Value IRR MF IRR Value IRR MF IRR Value IRR MF IRR
- ------------ ---- --------- ------ ------ --------- ------ ------ --------- ------ ------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1 0.0% 950.51 -4.95% -5.01% 950.51 -4.95% -5.00% 950.51 -4.95% -4.99%
3 0.0% 1081.97 2.66% 2.60% 1081.97 2.66% 2.61% 1081.97 2.66% 2.62%
5 0.0% 1817.84 12.70% 12.64% 1817.84 12.70% 12.65% 1817.84 12.70% 12.66%
From 09-21-88 0.0% 2854.88 18.19% 18.14% 2854.88 18.19% 18.14% 2854.88 18.19% 18.15%
</TABLE>
- ------------------------------------------------------------------------------
Gross Deposit: 1000.00
Net Deposit: 1000.00
<TABLE>
<CAPTION>
Redeemable Value
-------------------------------------------------------------------------------------
ALSCKC95 ALSCKC95 ALSCKC95
Nom. 15.00 M.F. (0.029%) Nom. 12.50 M.F. (0.024%) Nom. 10.00 M.F. (0.019%)
# of Years --------------------------- --------------------------- ---------------------------
Ending 12-94 DSC Value IRR MF IRR Value IRR MF IRR Value IRR MF IRR
- ------------ ---- --------- ------ ------ --------- ------ ------ --------- ------ ------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1 0.0% 950.51 -4.95% -4.98% 950.51 -4.95% -4.97% 950.51 -4.95% -4.97%
3 0.0% 1081.97 2.66% 2.63% 1081.97 2.66% 2.64% 1081.97 2.66% 2.64%
5 0.0% 1817.84 12.70% 12.67% 1817.84 12.70% 12.67% 1817.84 12.70% 12.68%
From 09-21-88 0.0% 2854.88 18.19% 18.16% 2854.88 18.19% 18.17% 2854.88 18.19% 18.17%
</TABLE>
- ------------------------------------------------------------------------------
Gross Deposit: 1000.00
Net Deposit: 1000.00
<TABLE>
<CAPTION>
Redeemable Value
-------------------------------------------------------------------------------------
ALSCKC95 ALSCKC95
Nom. 7.50 M.F. (0.015%) Nom. 5.00 M.F. (0.010%)
# of Years --------------------------- ---------------------------
Ending 12-94 DSC Value IRR MF IRR Value IRR MF IRR
- ------------ ---- --------- ------ ------ --------- ------ ------
<S> <C> <C> <C> <C> <C> <C> <C>
1 0.0% 950.51 -4.95% -4.96% 950.51 -4.95% -4.96%
3 0.0% 1081.97 2.66% 2.65% 1081.97 2.66% 2.65%
5 0.0% 1817.84 12.70% 12.68% 1817.84 12.70% 12.69%
From 09-21-88 0.0% 2854.88 18.19% 18.18% 2854.88 18.19% 18.18%
</TABLE>
Accumulation Unit Values
------------------------------------------------------------
ALSCKC95
ALSCKC95.UV
09-21-88 3.368489 i
12-99-89 5.290138
12-99-91 8.888095
12-99-93 10.117394
12-99-94 9.616635 i
(Unit values marked "i" are used for from-inception calculations.)
(Day = 99 means end-of-month.)
<PAGE>
Calvert Responsibly Invested Balanced Portfolio (ACES ACCT C) KANSAS95.CUV
- ------------------------------------------------------------------------------
Gross Deposit: 1000.00
Net Deposit: 1000.00
<TABLE>
<CAPTION>
Redeemable Value
-------------------------------------------------------------------------------------
CALKC95 CALKC95 CALKC95
Nom. 30.00 M.F. (0.058%) Nom. 25.00 M.F. (0.049%) Nom. 20.00 M.F. (0.039%)
# of Years --------------------------- --------------------------- ---------------------------
Ending 12-94 DSC Value IRR MF IRR Value IRR MF IRR Value IRR MF IRR
- ------------ ---- --------- ------ ------ --------- ------ ------ --------- ------ ------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1 0.0% 959.18 -4.08% -4.14% 959.18 -4.08% -4.13% 959.18 -4.08% -4.12%
3 0.0% 1096.04 3.10% 3.05% 1096.04 3.10% 3.05% 1096.04 3.10% 3.06%
5 0.0% 1347.30 6.14% 6.09% 1347.30 6.14% 6.09% 1347.30 6.14% 6.10%
From 09-99-86 0.0% 2013.46 8.85% 8.79% 2013.46 8.85% 8.80% 2013.46 8.85% 8.81%
</TABLE>
- ------------------------------------------------------------------------------
Gross Deposit: 1000.00
Net Deposit: 1000.00
<TABLE>
<CAPTION>
Redeemable Value
-------------------------------------------------------------------------------------
CALKC95 CALKC95 CALKC95
Nom. 15.00 M.F. (0.029%) Nom. 12.50 M.F. (0.024%) Nom. 10.00 M.F. (0.019%)
# of Years --------------------------- --------------------------- ---------------------------
Ending 12-94 DSC Value IRR MF IRR Value IRR MF IRR Value IRR MF IRR
- ------------ ---- --------- ------ ------ --------- ------ ------ --------- ------ ------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1 0.0% 959.18 -4.08% -4.11% 959.18 -4.08% -4.11% 959.18 -4.08% -4.10%
3 0.0% 1096.04 3.10% 3.07% 1096.04 3.10% 3.08% 1096.04 3.10% 3.08%
5 0.0% 1347.30 6.14% 6.11% 1347.30 6.14% 6.12% 1347.30 6.14% 6.12%
From 09-99-86 0.0% 2013.46 8.85% 8.82% 2013.46 8.85% 8.83% 2013.46 8.85% 8.83%
</TABLE>
- ------------------------------------------------------------------------------
Gross Deposit: 1000.00
Net Deposit: 1000.00
<TABLE>
<CAPTION>
Redeemable Value
-------------------------------------------------------------------------------------
CALKC95 CALKC95
Nom. 7.50 M.F. (0.015%) Nom. 5.00 M.F. (0.010%)
# of Years --------------------------- ---------------------------
Ending 12-94 DSC Value IRR MF IRR Value IRR MF IRR
- ------------ ---- --------- ------ ------ --------- ------ ------
<S> <C> <C> <C> <C> <C> <C> <C>
1 0.0% 959.18 -4.08% -4.10% 959.18 -4.08% -4.09%
3 0.0% 1096.04 3.10% 3.09% 1096.04 3.10% 3.09%
5 0.0% 1347.30 6.14% 6.13% 1347.30 6.14% 6.13%
From 09-99-86 0.0% 2013.46 8.85% 8.84% 2013.46 8.85% 8.84%
</TABLE>
Accumulation Unit Values
------------------------------------------------------------
CALKC95
CALKC95.UV
09-99-86 5.373079 i
12-99-89 8.029757
12-99-91 9.870547
12-99-93 11.278888
12-99-94 10.818475 i
(Unit values marked "i" are used for from-inception calculations.)
(Day = 99 means end-of-month.)
<PAGE>
Franklin Government Securities (ACES ACCT C) KANSAS95.CUV
- ------------------------------------------------------------------------------
Gross Deposit: 1000.00
Net Deposit: 1000.00
<TABLE>
<CAPTION>
Redeemable Value
-------------------------------------------------------------------------------------
FRKKC95 FRKKC95 FRKKC95
Nom. 30.00 M.F. (0.058%) Nom. 25.00 M.F. (0.049%) Nom. 20.00 M.F. (0.039%)
# of Years --------------------------- --------------------------- ---------------------------
Ending 12-94 DSC Value IRR MF IRR Value IRR MF IRR Value IRR MF IRR
- ------------ ---- --------- ------ ------ --------- ------ ------ --------- ------ ------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1 0.0% 953.70 -4.63% -4.69% 953.70 -4.63% -4.68% 953.70 -4.63% -4.67%
3 0.0% 1081.71 2.65% 2.59% 1081.71 2.65% 2.60% 1081.71 2.65% 2.61%
5 0.0% 1359.47 6.33% 6.28% 1359.47 6.33% 6.29% 1359.47 6.33% 6.30%
From 05-30-89 0.0% 1441.04 6.76% 6.70% 1441.04 6.76% 6.71% 1441.04 6.76% 6.72%
</TABLE>
- ------------------------------------------------------------------------------
Gross Deposit: 1000.00
Net Deposit: 1000.00
<TABLE>
<CAPTION>
Redeemable Value
-------------------------------------------------------------------------------------
FRKKC95 FRKKC95 FRKKC95
Nom. 15.00 M.F. (0.029%) Nom. 12.50 M.F. (0.024%) Nom. 10.00 M.F. (0.019%)
# of Years --------------------------- --------------------------- ---------------------------
Ending 12-94 DSC Value IRR MF IRR Value IRR MF IRR Value IRR MF IRR
- ------------ ---- --------- ------ ------ --------- ------ ------ --------- ------ ------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1 0.0% 953.70 -4.63% -4.66% 953.70 -4.63% -4.65% 953.70 -4.63% -4.65%
3 0.0% 1081.71 2.65% 2.62% 1081.71 2.65% 2.63% 1081.71 2.65% 2.63%
5 0.0% 1359.47 6.33% 6.31% 1359.47 6.33% 6.31% 1359.47 6.33% 6.32%
From 05-30-89 0.0% 1441.04 6.76% 6.73% 1441.04 6.76% 6.73% 1441.04 6.76% 6.74%
</TABLE>
- ------------------------------------------------------------------------------
Gross Deposit: 1000.00
Net Deposit: 1000.00
<TABLE>
<CAPTION>
Redeemable Value
-------------------------------------------------------------------------------------
FRKKC95 FRKKC95
Nom. 7.50 M.F. (0.015%) Nom. 5.00 M.F. (0.010%)
# of Years --------------------------- ---------------------------
Ending 12-94 DSC Value IRR MF IRR Value IRR MF IRR
- ------------ ---- --------- ------ ------ --------- ------ ------
<S> <C> <C> <C> <C> <C> <C> <C>
1 0.0% 953.70 -4.63% -4.65% 953.70 -4.63% -4.64%
3 0.0% 1081.71 2.65% 2.64% 1081.71 2.65% 2.64%
5 0.0% 1359.47 6.33% 6.32% 1359.47 6.33% 6.32%
From 05-30-89 0.0% 1441.04 6.76% 6.74% 1441.04 6.76% 6.75%
</TABLE>
Accumulation Unit Values
------------------------------------------------------------
FRKKC95
FRKKC95.UV
05-30-89 7.140509 i
12-99-89 7.568976
12-99-91 9.512487
12-99-93 10.789298
12-99-94 10.289762 i
(Unit values marked "i" are used for from-inception calculations.)
(Day = 99 means end-of-month.)
<PAGE>
Fidelity Growth (ACES ACCT C) KANSAS95.CUV
- ------------------------------------------------------------------------------
Gross Deposit: 1000.00
Net Deposit: 1000.00
<TABLE>
<CAPTION>
Redeemable Value
-------------------------------------------------------------------------------------
FDEGKC95 FDEGKC95 FDEGKC95
Nom. 30.00 M.F. (0.058%) Nom. 25.00 M.F. (0.049%) Nom. 20.00 M.F. (0.039%)
# of Years --------------------------- --------------------------- ---------------------------
Ending 12-94 DSC Value IRR MF IRR Value IRR MF IRR Value IRR MF IRR
- ------------ ---- --------- ------ ------ --------- ------ ------ --------- ------ ------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1 0.0% 990.35 -0.97% -1.02% 990.35 -0.97% -1.01% 990.35 -0.97% -1.00%
3 0.0% 1268.05 8.24% 8.18% 1268.05 8.24% 8.19% 1268.05 8.24% 8.20%
5 0.0% 1598.03 9.83% 9.77% 1598.03 9.83% 9.78% 1598.03 9.83% 9.79%
From 11-07-86 0.0% 2451.29 11.63% 11.57% 2451.29 11.63% 11.58% 2451.29 11.63% 11.59%
</TABLE>
- ------------------------------------------------------------------------------
Gross Deposit: 1000.00
Net Deposit: 1000.00
<TABLE>
<CAPTION>
Redeemable Value
-------------------------------------------------------------------------------------
FDEGKC95 FDEGKC95 FDEGKC95
Nom. 15.00 M.F. (0.029%) Nom. 12.50 M.F. (0.024%) Nom. 10.00 M.F. (0.019%)
# of Years --------------------------- --------------------------- ---------------------------
Ending 12-94 DSC Value IRR MF IRR Value IRR MF IRR Value IRR MF IRR
- ------------ ---- --------- ------ ------ --------- ------ ------ --------- ------ ------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1 0.0% 990.35 -0.97% -0.99% 990.35 -0.97% -0.99% 990.35 -0.97% -0.98%
3 0.0% 1268.05 8.24% 8.21% 1268.05 8.24% 8.21% 1268.05 8.24% 8.22%
5 0.0% 1598.03 9.83% 9.80% 1598.03 9.83% 9.80% 1598.03 9.83% 9.81%
From 11-07-86 0.0% 2451.29 11.63% 11.60% 2451.29 11.63% 11.61% 2451.29 11.63% 11.61%
</TABLE>
- ------------------------------------------------------------------------------
Gross Deposit: 1000.00
Net Deposit: 1000.00
<TABLE>
<CAPTION>
Redeemable Value
-------------------------------------------------------------------------------------
FDEGKC95 FDEGKC95
Nom. 7.50 M.F. (0.015%) Nom. 5.00 M.F. (0.010%)
# of Years --------------------------- ---------------------------
Ending 12-94 DSC Value IRR MF IRR Value IRR MF IRR
- ------------ ---- --------- ------ ------ --------- ------ ------
<S> <C> <C> <C> <C> <C> <C> <C>
1 0.0% 990.35 -0.97% -0.98% 990.35 -0.97% -0.98%
3 0.0% 1268.05 8.24% 8.22% 1268.05 8.24% 8.23%
5 0.0% 1598.03 9.83% 9.81% 1598.03 9.83% 9.82%
From 11-07-86 0.0% 2451.29 11.63% 11.62% 2451.29 11.63% 11.62%
</TABLE>
Accumulation Unit Values
------------------------------------------------------------
FDEGKC95
FDEGKC95.UV
11-07-86 3.147478 i
12-99-89 4.828040
12-99-91 6.084428
12-99-93 7.790527
12-99-94 7.715373 i
(Unit values marked "i" are used for from-inception calculations.)
(Day = 99 means end-of-month.)
<PAGE>
Fidelity Equity Income (ACES ACCT C) KANSAS95.CUV
- ------------------------------------------------------------------------------
Gross Deposit: 1000.00
Net Deposit: 1000.00
<TABLE>
<CAPTION>
Redeemable Value
-------------------------------------------------------------------------------------
FDEIKC95 FDEIKC95 FDEIKC95
Nom. 30.00 M.F. (0.058%) Nom. 25.00 M.F. (0.049%) Nom. 20.00 M.F. (0.039%)
# of Years --------------------------- --------------------------- ---------------------------
Ending 12-94 DSC Value IRR MF IRR Value IRR MF IRR Value IRR MF IRR
- ------------ ---- --------- ------ ------ --------- ------ ------ --------- ------ ------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1 0.0% 1060.49 6.05% 5.99% 1060.49 6.05% 6.00% 1060.49 6.05% 6.01%
3 0.0% 1438.76 12.89% 12.83% 1438.76 12.89% 12.84% 1438.76 12.89% 12.85%
5 0.0% 1571.81 9.47% 9.41% 1571.81 9.47% 9.42% 1571.81 9.47% 9.43%
From 10-22-86 0.0% 2175.19 9.95% 9.89% 2175.19 9.95% 9.90% 2175.19 9.95% 9.91%
</TABLE>
- ------------------------------------------------------------------------------
Gross Deposit: 1000.00
Net Deposit: 1000.00
<TABLE>
<CAPTION>
Redeemable Value
-------------------------------------------------------------------------------------
FDEIKC95 FDEIKC95 FDEIKC95
Nom. 15.00 M.F. (0.029%) Nom. 12.50 M.F. (0.024%) Nom. 10.00 M.F. (0.019%)
# of Years --------------------------- --------------------------- ---------------------------
Ending 12-94 DSC Value IRR MF IRR Value IRR MF IRR Value IRR MF IRR
- ------------ ---- --------- ------ ------ --------- ------ ------ --------- ------ ------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1 0.0% 1060.49 6.05% 6.02% 1060.49 6.05% 6.03% 1060.49 6.05% 6.03%
3 0.0% 1438.76 12.89% 12.86% 1438.76 12.89% 12.87% 1438.76 12.89% 12.87%
5 0.0% 1571.81 9.47% 9.44% 1571.81 9.47% 9.44% 1571.81 9.47% 9.45%
From 10-22-86 0.0% 2175.19 9.95% 9.92% 2175.19 9.95% 9.93% 2175.19 9.95% 9.93%
</TABLE>
- ------------------------------------------------------------------------------
Gross Deposit: 1000.00
Net Deposit: 1000.00
<TABLE>
<CAPTION>
Redeemable Value
-------------------------------------------------------------------------------------
FDEIKC95 FDEIKC95
Nom. 7.50 M.F. (0.015%) Nom. 5.00 M.F. (0.010%)
# of Years --------------------------- ---------------------------
Ending 12-94 DSC Value IRR MF IRR Value IRR MF IRR
- ------------ ---- --------- ------ ------ --------- ------ ------
<S> <C> <C> <C> <C> <C> <C> <C>
1 0.0% 1060.49 6.05% 6.03% 1060.49 6.05% 6.04%
3 0.0% 1438.76 12.89% 12.88% 1438.76 12.89% 12.88%
5 0.0% 1571.81 9.47% 9.45% 1571.81 9.47% 9.46%
From 10-22-86 0.0% 2175.19 9.95% 9.94% 2175.19 9.95% 9.94%
</TABLE>
Accumulation Unit Values
------------------------------------------------------------
FDEIKC95
FDEIKC95.UV
10-22-86 3.916857 i
12-99-89 5.420469
12-99-91 5.921706
12-99-93 8.033922
12-99-94 8.519924 i
(Unit values marked "i" are used for from-inception calculations.)
(Day = 99 means end-of-month.)
<PAGE>
Fidelity Overseas (ACES ACCT C) KANSAS95.CUV
- ------------------------------------------------------------------------------
Gross Deposit: 1000.00
Net Deposit: 1000.00
<TABLE>
<CAPTION>
Redeemable Value
-------------------------------------------------------------------------------------
FDOSKC95 FDOSKC95 FDOSKC95
Nom. 30.00 M.F. (0.058%) Nom. 25.00 M.F. (0.049%) Nom. 20.00 M.F. (0.039%)
# of Years --------------------------- --------------------------- ---------------------------
Ending 12-94 DSC Value IRR MF IRR Value IRR MF IRR Value IRR MF IRR
- ------------ ---- --------- ------ ------ --------- ------ ------ --------- ------ ------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1 0.0% 1007.63 0.76% 0.71% 1007.63 0.76% 0.71% 1007.63 0.76% 0.72%
3 0.0% 1212.36 6.63% 6.57% 1212.36 6.63% 6.58% 1212.36 6.63% 6.59%
5 0.0% 1263.30 4.79% 4.73% 1263.30 4.79% 4.74% 1263.30 4.79% 4.75%
From 02-13-87 0.0% 1588.18 6.05% 5.99% 1588.18 6.05% 6.00% 1588.18 6.05% 6.01%
</TABLE>
- ------------------------------------------------------------------------------
Gross Deposit: 1000.00
Net Deposit: 1000.00
<TABLE>
<CAPTION>
Redeemable Value
-------------------------------------------------------------------------------------
FDOSKC95 FDOSKC95 FDOSKC95
Nom. 15.00 M.F. (0.029%) Nom. 12.50 M.F. (0.024%) Nom. 10.00 M.F. (0.019%)
# of Years --------------------------- --------------------------- ---------------------------
Ending 12-94 DSC Value IRR MF IRR Value IRR MF IRR Value IRR MF IRR
- ------------ ---- --------- ------ ------ --------- ------ ------ --------- ------ ------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1 0.0% 1007.63 0.76% 0.73% 1007.63 0.76% 0.74% 1007.63 0.76% 0.74%
3 0.0% 1212.36 6.63% 6.60% 1212.36 6.63% 6.61% 1212.36 6.63% 6.61%
5 0.0% 1263.30 4.79% 4.76% 1263.30 4.79% 4.76% 1263.30 4.79% 4.77%
From 02-13-87 0.0% 1588.18 6.05% 6.02% 1588.18 6.05% 6.02% 1588.18 6.05% 6.03%
</TABLE>
- ------------------------------------------------------------------------------
Gross Deposit: 1000.00
Net Deposit: 1000.00
<TABLE>
<CAPTION>
Redeemable Value
-------------------------------------------------------------------------------------
FDOSKC95 FDOSKC95
Nom. 7.50 M.F. (0.015%) Nom. 5.00 M.F. (0.010%)
# of Years --------------------------- ---------------------------
Ending 12-94 DSC Value IRR MF IRR Value IRR MF IRR
- ------------ ---- --------- ------ ------ --------- ------ ------
<S> <C> <C> <C> <C> <C> <C> <C>
1 0.0% 1007.63 0.76% 0.75% 1007.63 0.76% 0.75%
3 0.0% 1212.36 6.63% 6.61% 1212.36 6.63% 6.62%
5 0.0% 1263.30 4.79% 4.77% 1263.30 4.79% 4.78%
From 02-13-87 0.0% 1588.18 6.05% 6.03% 1588.18 6.05% 6.04%
</TABLE>
Accumulation Unit Values
------------------------------------------------------------
FDOSKC95
FDOSKC95.UV
02-13-87 5.928449 i
12-99-89 7.453055
12-99-91 7.766159
12-99-93 9.344147
12-99-94 9.415418 i
(Unit values marked "i" are used for from-inception calculations.)
(Day = 99 means end-of-month.)
<PAGE>
Janus Aspen Aggressive Growth (ACES ACCT C) KANSAS95.CUV
- ------------------------------------------------------------------------------
Gross Deposit: 1000.00
Net Deposit: 1000.00
<TABLE>
<CAPTION>
Redeemable Value
-------------------------------------------------------------------------------------
JAGKC95 JAGKC95 JAGKC95
Nom. 30.00 M.F. (0.058%) Nom. 25.00 M.F. (0.049%) Nom. 20.00 M.F. (0.039%)
# of Years --------------------------- --------------------------- ---------------------------
Ending 12-94 DSC Value IRR MF IRR Value IRR MF IRR Value IRR MF IRR
- ------------ ---- --------- ------ ------ --------- ------ ------ --------- ------ ------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1 0.0% 1152.53 15.25% 15.20% 1152.53 15.25% 15.20% 1152.53 15.25% 15.21%
From 09-13-93 0.0% 1356.71 26.48% 26.42% 1356.71 26.48% 26.43% 1356.71 26.48% 26.44%
From 09-13-93 0.0% 1356.71 26.48% 26.42% 1356.71 26.48% 26.43% 1356.71 26.48% 26.44%
From 09-13-93 0.0% 1356.71 26.48% 26.42% 1356.71 26.48% 26.43% 1356.71 26.48% 26.44%
</TABLE>
- ------------------------------------------------------------------------------
Gross Deposit: 1000.00
Net Deposit: 1000.00
<TABLE>
<CAPTION>
Redeemable Value
-------------------------------------------------------------------------------------
JAGKC95 JAGKC95 JAGKC95
Nom. 15.00 M.F. (0.029%) Nom. 12.50 M.F. (0.024%) Nom. 10.00 M.F. (0.019%)
# of Years --------------------------- --------------------------- ---------------------------
Ending 12-94 DSC Value IRR MF IRR Value IRR MF IRR Value IRR MF IRR
- ------------ ---- --------- ------ ------ --------- ------ ------ --------- ------ ------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1 0.0% 1152.53 15.25% 15.22% 1152.53 15.25% 15.23% 1152.53 15.25% 15.23%
From 09-13-93 0.0% 1356.71 26.48% 26.45% 1356.71 26.48% 26.46% 1356.71 26.48% 26.46%
From 09-13-93 0.0% 1356.71 26.48% 26.45% 1356.71 26.48% 26.46% 1356.71 26.48% 26.46%
From 09-13-93 0.0% 1356.71 26.48% 26.45% 1356.71 26.48% 26.46% 1356.71 26.48% 26.46%
</TABLE>
- ------------------------------------------------------------------------------
Gross Deposit: 1000.00
Net Deposit: 1000.00
<TABLE>
<CAPTION>
Redeemable Value
-------------------------------------------------------------------------------------
JAGKC95 JAGKC95
Nom. 7.50 M.F. (0.015%) Nom. 5.00 M.F. (0.010%)
# of Years --------------------------- ---------------------------
Ending 12-94 DSC Value IRR MF IRR Value IRR MF IRR
- ------------ ---- --------- ------ ------ --------- ------ ------
<S> <C> <C> <C> <C> <C> <C> <C>
1 0.0% 1152.53 15.25% 15.24% 1152.53 15.25% 15.24%
From 09-13-93 0.0% 1356.71 26.48% 26.46% 1356.71 26.48% 26.47%
From 09-13-93 0.0% 1356.71 26.48% 26.46% 1356.71 26.48% 26.47%
From 09-13-93 0.0% 1356.71 26.48% 26.46% 1356.71 26.48% 26.47%
</TABLE>
Accumulation Unit Values
------------------------------------------------------------
JAGKC95
JAGKC95.UV
09-13-93 7.829372 i
12-99-93 9.216405
12-99-94 10.622208 i
(Unit values marked "i" are used for from-inception calculations.)
(Day = 99 means end-of-month.)
<PAGE>
Janus Aspen Balanced (ACES ACCT C) KANSAS95.CUV
- ------------------------------------------------------------------------------
Gross Deposit: 1000.00
Net Deposit: 1000.00
<TABLE>
<CAPTION>
Redeemable Value
-------------------------------------------------------------------------------------
JBALKC95 JBALKC95 JBALKC95
Nom. 30.00 M.F. (0.058%) Nom. 25.00 M.F. (0.049%) Nom. 20.00 M.F. (0.039%)
# of Years --------------------------- --------------------------- ---------------------------
Ending 12-94 DSC Value IRR MF IRR Value IRR MF IRR Value IRR MF IRR
- ------------ ---- --------- ------ ------ --------- ------ ------ --------- ------ ------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1 0.0% 998.95 -0.11% -0.16% 998.95 -0.11% -0.15% 998.95 -0.11% -0.14%
From 09-13-93 0.0% 1067.85 5.19% 5.13% 1067.85 5.19% 5.14% 1067.85 5.19% 5.15%
From 09-13-93 0.0% 1067.85 5.19% 5.13% 1067.85 5.19% 5.14% 1067.85 5.19% 5.15%
From 09-13-93 0.0% 1067.85 5.19% 5.13% 1067.85 5.19% 5.14% 1067.85 5.19% 5.15%
</TABLE>
- ------------------------------------------------------------------------------
Gross Deposit: 1000.00
Net Deposit: 1000.00
<TABLE>
<CAPTION>
Redeemable Value
-------------------------------------------------------------------------------------
JBALKC95 JBALKC95 JBALKC95
Nom. 15.00 M.F. (0.029%) Nom. 12.50 M.F. (0.024%) Nom. 10.00 M.F. (0.019%)
# of Years --------------------------- --------------------------- ---------------------------
Ending 12-94 DSC Value IRR MF IRR Value IRR MF IRR Value IRR MF IRR
- ------------ ---- --------- ------ ------ --------- ------ ------ --------- ------ ------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1 0.0% 998.95 -0.11% -0.13% 998.95 -0.11% -0.13% 998.95 -0.11% -0.12%
From 09-13-93 0.0% 1067.85 5.19% 5.16% 1067.85 5.19% 5.16% 1067.85 5.19% 5.17%
From 09-13-93 0.0% 1067.85 5.19% 5.16% 1067.85 5.19% 5.16% 1067.85 5.19% 5.17%
From 09-13-93 0.0% 1067.85 5.19% 5.16% 1067.85 5.19% 5.16% 1067.85 5.19% 5.17%
</TABLE>
- ------------------------------------------------------------------------------
Gross Deposit: 1000.00
Net Deposit: 1000.00
<TABLE>
<CAPTION>
Redeemable Value
-------------------------------------------------------------------------------------
JBALKC95 JBALKC95
Nom. 7.50 M.F. (0.015%) Nom. 5.00 M.F. (0.010%)
# of Years --------------------------- ---------------------------
Ending 12-94 DSC Value IRR MF IRR Value IRR MF IRR
- ------------ ---- --------- ------ ------ --------- ------ ------
<S> <C> <C> <C> <C> <C> <C> <C>
1 0.0% 998.95 -0.11% -0.12% 998.95 -0.11% -0.12%
From 09-13-93 0.0% 1067.85 5.19% 5.17% 1067.85 5.19% 5.18%
From 09-13-93 0.0% 1067.85 5.19% 5.17% 1067.85 5.19% 5.18%
From 09-13-93 0.0% 1067.85 5.19% 5.17% 1067.85 5.19% 5.18%
</TABLE>
Accumulation Unit Values
------------------------------------------------------------
JBALKC95
JBALKC95.UV
09-13-93 8.276858 i
12-99-93 8.847734
12-99-94 8.838408 i
(Unit values marked "i" are used for from-inception calculations.)
(Day = 99 means end-of-month.)
<PAGE>
Janus Aspen Growth (ACES ACCT C) KANSAS95.CUV
- ------------------------------------------------------------------------------
Gross Deposit: 1000.00
Net Deposit: 1000.00
<TABLE>
<CAPTION>
Redeemable Value
-------------------------------------------------------------------------------------
JGROKC95 JGROKC95 JGROKC95
Nom. 30.00 M.F. (0.058%) Nom. 25.00 M.F. (0.049%) Nom. 20.00 M.F. (0.039%)
# of Years --------------------------- --------------------------- ---------------------------
Ending 12-94 DSC Value IRR MF IRR Value IRR MF IRR Value IRR MF IRR
- ------------ ---- --------- ------ ------ --------- ------ ------ --------- ------ ------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1 0.0% 1017.91 1.79% 1.73% 1017.91 1.79% 1.74% 1017.91 1.79% 1.75%
From 09-13-93 0.0% 1050.55 3.87% 3.81% 1050.55 3.87% 3.82% 1050.55 3.87% 3.83%
From 09-13-93 0.0% 1050.55 3.87% 3.81% 1050.55 3.87% 3.82% 1050.55 3.87% 3.83%
From 09-13-93 0.0% 1050.55 3.87% 3.81% 1050.55 3.87% 3.82% 1050.55 3.87% 3.83%
</TABLE>
- ------------------------------------------------------------------------------
Gross Deposit: 1000.00
Net Deposit: 1000.00
<TABLE>
<CAPTION>
Redeemable Value
-------------------------------------------------------------------------------------
JGROKC95 JGROKC95 JGROKC95
Nom. 15.00 M.F. (0.029%) Nom. 12.50 M.F. (0.024%) Nom. 10.00 M.F. (0.019%)
# of Years --------------------------- --------------------------- ---------------------------
Ending 12-94 DSC Value IRR MF IRR Value IRR MF IRR Value IRR MF IRR
- ------------ ---- --------- ------ ------ --------- ------ ------ --------- ------ ------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1 0.0% 1017.91 1.79% 1.76% 1017.91 1.79% 1.77% 1017.91 1.79% 1.77%
From 09-13-93 0.0% 1050.55 3.87% 3.84% 1050.55 3.87% 3.85% 1050.55 3.87% 3.85%
From 09-13-93 0.0% 1050.55 3.87% 3.84% 1050.55 3.87% 3.85% 1050.55 3.87% 3.85%
From 09-13-93 0.0% 1050.55 3.87% 3.84% 1050.55 3.87% 3.85% 1050.55 3.87% 3.85%
</TABLE>
- ------------------------------------------------------------------------------
Gross Deposit: 1000.00
Net Deposit: 1000.00
<TABLE>
<CAPTION>
Redeemable Value
-------------------------------------------------------------------------------------
JGROKC95 JGROKC95
Nom. 7.50 M.F. (0.015%) Nom. 5.00 M.F. (0.010%)
# of Years --------------------------- ---------------------------
Ending 12-94 DSC Value IRR MF IRR Value IRR MF IRR
- ------------ ---- --------- ------ ------ --------- ------ ------
<S> <C> <C> <C> <C> <C> <C> <C>
1 0.0% 1017.91 1.79% 1.78% 1017.91 1.79% 1.78%
From 09-13-93 0.0% 1050.55 3.87% 3.86% 1050.55 3.87% 3.86%
From 09-13-93 0.0% 1050.55 3.87% 3.86% 1050.55 3.87% 3.86%
From 09-13-93 0.0% 1050.55 3.87% 3.86% 1050.55 3.87% 3.86%
</TABLE>
Accumulation Unit Values
------------------------------------------------------------
JGROKC95
JGROKC95.UV
09-13-93 8.079926 i
12-99-93 8.338970
12-99-94 8.488342 i
(Unit values marked "i" are used for from-inception calculations.)
(Day = 99 means end-of-month.)
<PAGE>
Janus Aspen Flexible Income (ACES ACCT C) KANSAS95.CUV
- ------------------------------------------------------------------------------
Gross Deposit: 1000.00
Net Deposit: 1000.00
<TABLE>
<CAPTION>
Redeemable Value
-------------------------------------------------------------------------------------
JFIKC95 JFIKC95 JFIKC95
Nom. 30.00 M.F. (0.058%) Nom. 25.00 M.F. (0.049%) Nom. 20.00 M.F. (0.039%)
# of Years --------------------------- --------------------------- ---------------------------
Ending 12-94 DSC Value IRR MF IRR Value IRR MF IRR Value IRR MF IRR
- ------------ ---- --------- ------ ------ --------- ------ ------ --------- ------ ------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1 0.0% 981.78 -1.82% -1.88% 981.78 -1.82% -1.87% 981.78 -1.82% -1.86%
From 09-13-93 0.0% 985.91 -1.09% -1.14% 985.91 -1.09% -1.14% 985.91 -1.09% -1.13%
From 09-13-93 0.0% 985.91 -1.09% -1.14% 985.91 -1.09% -1.14% 985.91 -1.09% -1.13%
From 09-13-93 0.0% 985.91 -1.09% -1.14% 985.91 -1.09% -1.14% 985.91 -1.09% -1.13%
</TABLE>
- ------------------------------------------------------------------------------
Gross Deposit: 1000.00
Net Deposit: 1000.00
<TABLE>
<CAPTION>
Redeemable Value
-------------------------------------------------------------------------------------
JFIKC95 JFIKC95 JFIKC95
Nom. 15.00 M.F. (0.029%) Nom. 12.50 M.F. (0.024%) Nom. 10.00 M.F. (0.019%)
# of Years --------------------------- --------------------------- ---------------------------
Ending 12-94 DSC Value IRR MF IRR Value IRR MF IRR Value IRR MF IRR
- ------------ ---- --------- ------ ------ --------- ------ ------ --------- ------ ------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1 0.0% 981.78 -1.82% -1.85% 981.78 -1.82% -1.85% 981.78 -1.82% -1.84%
From 09-13-93 0.0% 985.91 -1.09% -1.12% 985.91 -1.09% -1.11% 985.91 -1.09% -1.11%
From 09-13-93 0.0% 985.91 -1.09% -1.12% 985.91 -1.09% -1.11% 985.91 -1.09% -1.11%
From 09-13-93 0.0% 985.91 -1.09% -1.12% 985.91 -1.09% -1.11% 985.91 -1.09% -1.11%
</TABLE>
- ------------------------------------------------------------------------------
Gross Deposit: 1000.00
Net Deposit: 1000.00
<TABLE>
<CAPTION>
Redeemable Value
-------------------------------------------------------------------------------------
JFIKC95 JFIKC95
Nom. 7.50 M.F. (0.015%) Nom. 5.00 M.F. (0.010%)
# of Years --------------------------- ---------------------------
Ending 12-94 DSC Value IRR MF IRR Value IRR MF IRR
- ------------ ---- --------- ------ ------ --------- ------ ------
<S> <C> <C> <C> <C> <C> <C> <C>
1 0.0% 981.78 -1.82% -1.84% 981.78 -1.82% -1.83%
From 09-13-93 0.0% 985.91 -1.09% -1.10% 985.91 -1.09% -1.10%
From 09-13-93 0.0% 985.91 -1.09% -1.10% 985.91 -1.09% -1.10%
From 09-13-93 0.0% 985.91 -1.09% -1.10% 985.91 -1.09% -1.10%
</TABLE>
Accumulation Unit Values
------------------------------------------------------------
JFIKC95
JFIKC95.UV
09-13-93 10.052908 i
12-99-93 10.095160
12-99-94 9.911261 i
(Unit values marked "i" are used for from-inception calculations.)
(Day = 99 means end-of-month.)
<PAGE>
Janus Aspen Short-Term Bond (ACES ACCT C) KANSAS95.CUV
- ------------------------------------------------------------------------------
Gross Deposit: 1000.00
Net Deposit: 1000.00
<TABLE>
<CAPTION>
v Redeemable Value
-------------------------------------------------------------------------------------
JSTBKC95 JSTBKC95 JSTBKC95
Nom. 30.00 M.F. (0.058%) Nom. 25.00 M.F. (0.049%) Nom. 20.00 M.F. (0.039%)
# of Years --------------------------- --------------------------- ---------------------------
Ending 12-94 DSC Value IRR MF IRR Value IRR MF IRR Value IRR MF IRR
- ------------ ---- --------- ------ ------ --------- ------ ------ --------- ------ ------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1 0.0% 999.72 -0.03% -0.09% 999.72 -0.03% -0.08% 999.72 -0.03% -0.07%
From 09-13-93 0.0% 999.88 -0.01% -0.07% 999.88 -0.01% -0.06% 999.88 -0.01% -0.05%
From 09-13-93 0.0% 999.88 -0.01% -0.07% 999.88 -0.01% -0.06% 999.88 -0.01% -0.05%
From 09-13-93 0.0% 999.88 -0.01% -0.07% 999.88 -0.01% -0.06% 999.88 -0.01% -0.05%
</TABLE>
- ------------------------------------------------------------------------------
Gross Deposit: 1000.00
Net Deposit: 1000.00
<TABLE>
<CAPTION>
Redeemable Value
-------------------------------------------------------------------------------------
JSTBKC95 JSTBKC95 JSTBKC95
Nom. 15.00 M.F. (0.029%) Nom. 12.50 M.F. (0.024%) Nom. 10.00 M.F. (0.019%)
# of Years --------------------------- --------------------------- ---------------------------
Ending 12-94 DSC Value IRR MF IRR Value IRR MF IRR Value IRR MF IRR
- ------------ ---- --------- ------ ------ --------- ------ ------ --------- ------ ------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1 0.0% 999.72 -0.03% -0.06% 999.72 -0.03% -0.05% 999.72 -0.03% -0.05%
From 09-13-93 0.0% 999.88 -0.01% -0.04% 999.88 -0.01% -0.03% 999.88 -0.01% -0.03%
From 09-13-93 0.0% 999.88 -0.01% -0.04% 999.88 -0.01% -0.03% 999.88 -0.01% -0.03%
From 09-13-93 0.0% 999.88 -0.01% -0.04% 999.88 -0.01% -0.03% 999.88 -0.01% -0.03%
</TABLE>
- ------------------------------------------------------------------------------
Gross Deposit: 1000.00
Net Deposit: 1000.00
<TABLE>
<CAPTION>
Redeemable Value
-------------------------------------------------------------------------------------
JSTBKC95 JSTBKC95
Nom. 7.50 M.F. (0.015%) Nom. 5.00 M.F. (0.010%)
# of Years --------------------------- ---------------------------
Ending 12-94 DSC Value IRR MF IRR Value IRR MF IRR
- ------------ ---- --------- ------ ------ --------- ------ ------
<S> <C> <C> <C> <C> <C> <C> <C>
1 0.0% 999.72 -0.03% -0.04% 999.72 -0.03% -0.04%
From 09-13-93 0.0% 999.88 -0.01% -0.02% 999.88 -0.01% -0.02%
From 09-13-93 0.0% 999.88 -0.01% -0.02% 999.88 -0.01% -0.02%
From 09-13-93 0.0% 999.88 -0.01% -0.02% 999.88 -0.01% -0.02%
</TABLE>
Accumulation Unit Values
------------------------------------------------------------
JSTBKC95
JSTBKC95.UV
09-13-93 9.581002 i
12-99-93 9.582522
12-99-94 9.579845 i
(Unit values marked "i" are used for from-inception calculations.)
(Day = 99 means end-of-month.)
<PAGE>
Janus Aspen Worldwide (ACES ACCT C) KANSAS95.CUV
- ------------------------------------------------------------------------------
Gross Deposit: 1000.00
Net Deposit: 1000.00
<TABLE>
<CAPTION>
Redeemable Value
-------------------------------------------------------------------------------------
JWWKC95 JWWKC95 JWWKC95
Nom. 30.00 M.F. (0.058%) Nom. 25.00 M.F. (0.049%) Nom. 20.00 M.F. (0.039%)
# of Years --------------------------- --------------------------- ---------------------------
Ending 12-94 DSC Value IRR MF IRR Value IRR MF IRR Value IRR MF IRR
- ------------ ---- --------- ------ ------ --------- ------ ------ --------- ------ ------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1 0.0% 1005.76 0.58% 0.52% 1005.76 0.58% 0.53% 1005.76 0.58% 0.54%
From 09-13-93 0.0% 1194.48 14.67% 14.61% 1194.48 14.67% 14.62% 1194.48 14.67% 14.63%
From 09-13-93 0.0% 1194.48 14.67% 14.61% 1194.48 14.67% 14.62% 1194.48 14.67% 14.63%
From 09-13-93 0.0% 1194.48 14.67% 14.61% 1194.48 14.67% 14.62% 1194.48 14.67% 14.63%
</TABLE>
- ------------------------------------------------------------------------------
Gross Deposit: 1000.00
Net Deposit: 1000.00
<TABLE>
<CAPTION>
Redeemable Value
-------------------------------------------------------------------------------------
JWWKC95 JWWKC95 JWWKC95
Nom. 15.00 M.F. (0.029%) Nom. 12.50 M.F. (0.024%) Nom. 10.00 M.F. (0.019%)
# of Years --------------------------- --------------------------- ---------------------------
Ending 12-94 DSC Value IRR MF IRR Value IRR MF IRR Value IRR MF IRR
- ------------ ---- --------- ------ ------ --------- ------ ------ --------- ------ ------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1 0.0% 1005.76 0.58% 0.55% 1005.76 0.58% 0.55% 1005.76 0.58% 0.56%
From 09-13-93 0.0% 1194.48 14.67% 14.64% 1194.48 14.67% 14.64% 1194.48 14.67% 14.65%
From 09-13-93 0.0% 1194.48 14.67% 14.64% 1194.48 14.67% 14.64% 1194.48 14.67% 14.65%
From 09-13-93 0.0% 1194.48 14.67% 14.64% 1194.48 14.67% 14.64% 1194.48 14.67% 14.65%
</TABLE>
- ------------------------------------------------------------------------------
Gross Deposit: 1000.00
Net Deposit: 1000.00
<TABLE>
<CAPTION>
Redeemable Value
-------------------------------------------------------------------------------------
JWWKC95 JWWKC95
Nom. 7.50 M.F. (0.015%) Nom. 5.00 M.F. (0.010%)
# of Years --------------------------- ---------------------------
Ending 12-94 DSC Value IRR MF IRR Value IRR MF IRR
- ------------ ---- --------- ------ ------ --------- ------ ------
<S> <C> <C> <C> <C> <C> <C> <C>
1 0.0% 1005.76 0.58% 0.56% 1005.76 0.58% 0.57%
From 09-13-93 0.0% 1194.48 14.67% 14.65% 1194.48 14.67% 14.66%
From 09-13-93 0.0% 1194.48 14.67% 14.65% 1194.48 14.67% 14.66%
From 09-13-93 0.0% 1194.48 14.67% 14.65% 1194.48 14.67% 14.66%
</TABLE>
Accumulation Unit Values
------------------------------------------------------------
JWWKC95
JWWKC95.UV
09-13-93 7.272941 i
12-99-93 8.637571
12-99-94 8.687363 i
(Unit values marked "i" are used for from-inception calculations.)
(Day = 99 means end-of-month.)
<PAGE>
Lexington Natural Resources (ACES ACCT C) KANSAS95.CUV
- ------------------------------------------------------------------------------
Gross Deposit: 1000.00
Net Deposit: 1000.00
<TABLE>
<CAPTION>
Redeemable Value
-------------------------------------------------------------------------------------
LXNRKC95 LXNRKC95 LXNRKC95
Nom. 30.00 M.F. (0.058%) Nom. 25.00 M.F. (0.049%) Nom. 20.00 M.F. (0.039%)
# of Years --------------------------- --------------------------- ---------------------------
Ending 12-94 DSC Value IRR MF IRR Value IRR MF IRR Value IRR MF IRR
- ------------ ---- --------- ------ ------ --------- ------ ------ --------- ------ ------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1 0.0% 936.36 -6.36% -6.42% 936.36 -6.36% -6.41% 936.36 -6.36% -6.40%
3 0.0% 1725.49 19.94% 19.88% 1725.49 19.94% 19.89% 1725.49 19.94% 19.90%
5 0.0% 1368.24 6.47% 6.41% 1368.24 6.47% 6.42% 1368.24 6.47% 6.43%
From 05-99-89 0.0% 1568.19 8.39% 8.33% 1568.19 8.39% 8.34% 1568.19 8.39% 8.35%
</TABLE>
- ------------------------------------------------------------------------------
Gross Deposit: 1000.00
Net Deposit: 1000.00
<TABLE>
<CAPTION>
Redeemable Value
-------------------------------------------------------------------------------------
LXNRKC95 LXNRKC95 LXNRKC95
Nom. 15.00 M.F. (0.029%) Nom. 12.50 M.F. (0.024%) Nom. 10.00 M.F. (0.019%)
# of Years --------------------------- --------------------------- ---------------------------
Ending 12-94 DSC Value IRR MF IRR Value IRR MF IRR Value IRR MF IRR
- ------------ ---- --------- ------ ------ --------- ------ ------ --------- ------ ------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1 0.0% 936.36 -6.36% -6.39% 936.36 -6.36% -6.39% 936.36 -6.36% -6.38%
3 0.0% 1725.49 19.94% 19.91% 1725.49 19.94% 19.92% 1725.49 19.94% 19.92%
5 0.0% 1368.24 6.47% 6.44% 1368.24 6.47% 6.45% 1368.24 6.47% 6.45%
From 05-99-89 0.0% 1568.19 8.39% 8.36% 1568.19 8.39% 8.36% 1568.19 8.39% 8.37%
</TABLE>
- ------------------------------------------------------------------------------
Gross Deposit: 1000.00
Net Deposit: 1000.00
<TABLE>
<CAPTION>
Redeemable Value
-------------------------------------------------------------------------------------
LXNRKC95 LXNRKC95
Nom. 7.50 M.F. (0.015%) Nom. 5.00 M.F. (0.010%)
# of Years --------------------------- ---------------------------
Ending 12-94 DSC Value IRR MF IRR Value IRR MF IRR
- ------------ ---- --------- ------ ------ --------- ------ ------
<S> <C> <C> <C> <C> <C> <C> <C>
1 0.0% 936.36 -6.36% -6.38% 936.36 -6.36% -6.37%
3 0.0% 1725.49 19.94% 19.93% 1725.49 19.94% 19.93%
5 0.0% 1368.24 6.47% 6.46% 1368.24 6.47% 6.46%
From 05-99-89 0.0% 1568.19 8.39% 8.37% 1568.19 8.39% 8.38%
</TABLE>
Accumulation Unit Values
------------------------------------------------------------
LXNRKC95
LXNRKC95.UV
05-99-89 6.584555 i
12-99-89 7.546781
12-99-91 5.984292
12-99-93 11.027628
12-99-94 10.325825 i
(Unit values marked "i" are used for from-inception calculations.)
(Day = 99 means end-of-month.)
<PAGE>
Neuberger & Berman (ACES ACCT C) KANSAS95.CUV
- ------------------------------------------------------------------------------
Gross Deposit: 1000.00
Net Deposit: 1000.00
<TABLE>
<CAPTION>
Redeemable Value
-------------------------------------------------------------------------------------
NEBKC95 NEBKC95 NEBKC95
Nom. 30.00 M.F. (0.058%) Nom. 25.00 M.F. (0.049%) Nom. 20.00 M.F. (0.039%)
# of Years --------------------------- --------------------------- ---------------------------
Ending 12-94 DSC Value IRR MF IRR Value IRR MF IRR Value IRR MF IRR
- ------------ ---- --------- ------ ------ --------- ------ ------ --------- ------ ------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1 0.0% 941.45 -5.86% -5.91% 941.45 -5.86% -5.90% 941.45 -5.86% -5.89%
3 0.0% 1107.15 3.45% 3.39% 1107.15 3.45% 3.40% 1107.15 3.45% 3.41%
5 0.0% 1293.51 5.28% 5.22% 1293.51 5.28% 5.23% 1293.51 5.28% 5.24%
From 12-99-85 0.0% 2250.94 9.43% 9.38% 2250.94 9.43% 9.38% 2250.94 9.43% 9.39%
</TABLE>
- ------------------------------------------------------------------------------
Gross Deposit: 1000.00
Net Deposit: 1000.00
<TABLE>
<CAPTION>
Redeemable Value
-------------------------------------------------------------------------------------
NEBKC95 NEBKC95 NEBKC95
Nom. 15.00 M.F. (0.029%) Nom. 12.50 M.F. (0.024%) Nom. 10.00 M.F. (0.019%)
# of Years --------------------------- --------------------------- ---------------------------
Ending 12-94 DSC Value IRR MF IRR Value IRR MF IRR Value IRR MF IRR
- ------------ ---- --------- ------ ------ --------- ------ ------ --------- ------ ------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1 0.0% 941.45 -5.86% -5.88% 941.45 -5.86% -5.88% 941.45 -5.86% -5.87%
3 0.0% 1107.15 3.45% 3.42% 1107.15 3.45% 3.43% 1107.15 3.45% 3.43%
5 0.0% 1293.51 5.28% 5.25% 1293.51 5.28% 5.26% 1293.51 5.28% 5.26%
From 12-99-85 0.0% 2250.94 9.43% 9.40% 2250.94 9.43% 9.41% 2250.94 9.43% 9.41%
</TABLE>
- ------------------------------------------------------------------------------
Gross Deposit: 1000.00
Net Deposit: 1000.00
<TABLE>
<CAPTION>
Redeemable Value
-------------------------------------------------------------------------------------
NEBKC95 NEBKC95
Nom. 7.50 M.F. (0.015%) Nom. 5.00 M.F. (0.010%)
# of Years --------------------------- ---------------------------
Ending 12-94 DSC Value IRR MF IRR Value IRR MF IRR
- ------------ ---- --------- ------ ------ --------- ------ ------
<S> <C> <C> <C> <C> <C> <C> <C>
1 0.0% 941.45 -5.86% -5.87% 941.45 -5.86% -5.87%
3 0.0% 1107.15 3.45% 3.44% 1107.15 3.45% 3.44%
5 0.0% 1293.51 5.28% 5.27% 1293.51 5.28% 5.27%
From 12-99-85 0.0% 2250.94 9.43% 9.42% 2250.94 9.43% 9.42%
</TABLE>
Accumulation Unit Values
------------------------------------------------------------
NEBKC95
NEBKC95.UV
12-99-85 5.032596 i
12-99-89 8.757612
12-99-91 10.231776
12-99-93 12.032623
12-99-94 11.328075 i
(Unit values marked "i" are used for from-inception calculations.)
(Day = 99 means end-of-month.)
<PAGE>
Scudder International (ACES ACCT C) KANSAS95.CUV
- ------------------------------------------------------------------------------
Gross Deposit: 1000.00
Net Deposit: 1000.00
<TABLE>
<CAPTION>
Redeemable Value
-------------------------------------------------------------------------------------
SCDKC95 SCDKC95 SCDKC95
Nom. 30.00 M.F. (0.058%) Nom. 25.00 M.F. (0.049%) Nom. 20.00 M.F. (0.039%)
# of Years --------------------------- --------------------------- ---------------------------
Ending 12-94 DSC Value IRR MF IRR Value IRR MF IRR Value IRR MF IRR
- ------------ ---- --------- ------ ------ --------- ------ ------ --------- ------ ------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1 0.0% 982.14 -1.79% -1.84% 982.14 -1.79% -1.84% 982.14 -1.79% -1.83%
3 0.0% 1281.52 8.62% 8.56% 1281.52 8.62% 8.57% 1281.52 8.62% 8.58%
5 0.0% 1294.12 5.29% 5.23% 1294.12 5.29% 5.24% 1294.12 5.29% 5.25%
From 04-99-87 0.0% 1813.38 8.07% 8.01% 1813.38 8.07% 8.02% 1813.38 8.07% 8.03%
</TABLE>
- ------------------------------------------------------------------------------
Gross Deposit: 1000.00
Net Deposit: 1000.00
<TABLE>
<CAPTION>
Redeemable Value
-------------------------------------------------------------------------------------
SCDKC95 SCDKC95 SCDKC95
Nom. 15.00 M.F. (0.029%) Nom. 12.50 M.F. (0.024%) Nom. 10.00 M.F. (0.019%)
# of Years --------------------------- --------------------------- ---------------------------
Ending 12-94 DSC Value IRR MF IRR Value IRR MF IRR Value IRR MF IRR
- ------------ ---- --------- ------ ------ --------- ------ ------ --------- ------ ------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1 0.0% 982.14 -1.79% -1.82% 982.14 -1.79% -1.81% 982.14 -1.79% -1.81%
3 0.0% 1281.52 8.62% 8.59% 1281.52 8.62% 8.60% 1281.52 8.62% 8.60%
5 0.0% 1294.12 5.29% 5.26% 1294.12 5.29% 5.27% 1294.12 5.29% 5.27%
From 04-99-87 0.0% 1813.38 8.07% 8.04% 1813.38 8.07% 8.04% 1813.38 8.07% 8.05%
</TABLE>
- ------------------------------------------------------------------------------
Gross Deposit: 1000.00
Net Deposit: 1000.00
<TABLE>
<CAPTION>
Redeemable Value
-------------------------------------------------------------------------------------
SCDKC95 SCDKC95
Nom. 7.50 M.F. (0.015%) Nom. 5.00 M.F. (0.010%)
# of Years --------------------------- ---------------------------
Ending 12-94 DSC Value IRR MF IRR Value IRR MF IRR
- ------------ ---- --------- ------ ------ --------- ------ ------
<S> <C> <C> <C> <C> <C> <C> <C>
1 0.0% 982.14 -1.79% -1.80% 982.14 -1.79% -1.80%
3 0.0% 1281.52 8.62% 8.60% 1281.52 8.62% 8.61%
5 0.0% 1294.12 5.29% 5.28% 1294.12 5.29% 5.28%
From 04-99-87 0.0% 1813.38 8.07% 8.05% 1813.38 8.07% 8.06%
</TABLE>
Accumulation Unit Values
------------------------------------------------------------
SCDKC95
SCDKC95.UV
04-99-87 7.159307 i
12-99-89 10.031969
12-99-91 10.130572
12-99-93 13.218612
12-99-94 12.982555 i
(Unit values marked "i" are used for from-inception calculations.)
(Day = 99 means end-of-month.)
<PAGE>
Twentieth Century Growth (ACES ACCT C) KANSAS95.CUV
- ------------------------------------------------------------------------------
Gross Deposit: 1000.00
Net Deposit: 1000.00
<TABLE>
<CAPTION>
Redeemable Value
-------------------------------------------------------------------------------------
TCIKC95 TCIKC95 TCIKC95
Nom. 30.00 M.F. (0.058%) Nom. 25.00 M.F. (0.049%) Nom. 20.00 M.F. (0.039%)
# of Years --------------------------- --------------------------- ---------------------------
Ending 12-94 DSC Value IRR MF IRR Value IRR MF IRR Value IRR MF IRR
- ------------ ---- --------- ------ ------ --------- ------ ------ --------- ------ ------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1 0.0% 979.05 -2.10% -2.15% 979.05 -2.10% -2.14% 979.05 -2.10% -2.13%
3 0.0% 1085.59 2.78% 2.72% 1085.59 2.78% 2.73% 1085.59 2.78% 2.74%
5 0.0% 1492.39 8.34% 8.28% 1492.39 8.34% 8.29% 1492.39 8.34% 8.30%
From 11-20-87 0.0% 1971.80 10.02% 9.96% 1971.80 10.02% 9.97% 1971.80 10.02% 9.98%
</TABLE>
- ------------------------------------------------------------------------------
Gross Deposit: 1000.00
Net Deposit: 1000.00
<TABLE>
<CAPTION>
Redeemable Value
-------------------------------------------------------------------------------------
TCIKC95 TCIKC95 TCIKC95
Nom. 15.00 M.F. (0.029%) Nom. 12.50 M.F. (0.024%) Nom. 10.00 M.F. (0.019%)
# of Years --------------------------- --------------------------- ---------------------------
Ending 12-94 DSC Value IRR MF IRR Value IRR MF IRR Value IRR MF IRR
- ------------ ---- --------- ------ ------ --------- ------ ------ --------- ------ ------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1 0.0% 979.05 -2.10% -2.12% 979.05 -2.10% -2.12% 979.05 -2.10% -2.11%
3 0.0% 1085.59 2.78% 2.75% 1085.59 2.78% 2.75% 1085.59 2.78% 2.76%
5 0.0% 1492.39 8.34% 8.31% 1492.39 8.34% 8.31% 1492.39 8.34% 8.32%
From 11-20-87 0.0% 1971.80 10.02% 9.99% 1971.80 10.02% 9.99% 1971.80 10.02% 10.00%
</TABLE>
- ------------------------------------------------------------------------------
Gross Deposit: 1000.00
Net Deposit: 1000.00
<TABLE>
<CAPTION>
Redeemable Value
-------------------------------------------------------------------------------------
TCIKC95 TCIKC95
Nom. 7.50 M.F. (0.015%) Nom. 5.00 M.F. (0.010%)
# of Years --------------------------- ---------------------------
Ending 12-94 DSC Value IRR MF IRR Value IRR MF IRR
- ------------ ---- --------- ------ ------ --------- ------ ------
<S> <C> <C> <C> <C> <C> <C> <C>
1 0.0% 979.05 -2.10% -2.11% 979.05 -2.10% -2.11%
3 0.0% 1085.59 2.78% 2.76% 1085.59 2.78% 2.77%
5 0.0% 1492.39 8.34% 8.32% 1492.39 8.34% 8.33%
From 11-20-87 0.0% 1971.80 10.02% 10.00% 1971.80 10.02% 10.01%
</TABLE>
Accumulation Unit Values
------------------------------------------------------------
TCIKC95
TCIKC95.UV
11-20-87 6.103412 i
12-99-89 8.064031
12-99-91 11.085852
12-99-93 12.292225
12-99-94 12.034691 i
(Unit values marked "i" are used for from-inception calculations.)
(Day = 99 means end-of-month.)
<PAGE>
Aetna Variable Fund (ACES ACCT C) KANSAS95.CUV
- ------------------------------------------------------------------------------
Gross Deposit: 1000.00
Net Deposit: 1000.00
<TABLE>
<CAPTION>
Redeemable Value
-------------------------------------------------------------------------------------
VARKC95 VARKC95 VARKC95
Nom. 30.00 M.F. (0.058%) Nom. 25.00 M.F. (0.049%) Nom. 20.00 M.F. (0.039%)
# of Years --------------------------- --------------------------- ---------------------------
Ending 12-94 DSC Value IRR MF IRR Value IRR MF IRR Value IRR MF IRR
- ------------ ---- --------- ------ ------ --------- ------ ------ --------- ------ ------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1 5.0% 931.96 -6.80% -6.86% 931.96 -6.80% -6.85% 931.96 -6.80% -6.84%
3 5.0% 1041.38 1.36% 1.30% 1041.38 1.36% 1.31% 1041.38 1.36% 1.32%
5 5.0% 1333.94 5.93% 5.87% 1333.94 5.93% 5.88% 1333.94 5.93% 5.89%
10 0.0% 3264.11 12.56% 12.50% 3264.11 12.56% 12.51% 3264.11 12.56% 12.52%
</TABLE>
- ------------------------------------------------------------------------------
Gross Deposit: 1000.00
Net Deposit: 1000.00
<TABLE>
<CAPTION>
Redeemable Value
-------------------------------------------------------------------------------------
VARKC95 VARKC95 VARKC95
Nom. 15.00 M.F. (0.029%) Nom. 12.50 M.F. (0.024%) Nom. 10.00 M.F. (0.019%)
# of Years --------------------------- --------------------------- ---------------------------
Ending 12-94 DSC Value IRR MF IRR Value IRR MF IRR Value IRR MF IRR
- ------------ ---- --------- ------ ------ --------- ------ ------ --------- ------ ------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1 5.0% 931.96 -6.80% -6.83% 931.96 -6.80% -6.83% 931.96 -6.80% -6.82%
3 5.0% 1041.38 1.36% 1.33% 1041.38 1.36% 1.34% 1041.38 1.36% 1.34%
5 5.0% 1333.94 5.93% 5.90% 1333.94 5.93% 5.91% 1333.94 5.93% 5.91%
10 0.0% 3264.11 12.56% 12.53% 3264.11 12.56% 12.53% 3264.11 12.56% 12.54%
</TABLE>
- ------------------------------------------------------------------------------
Gross Deposit: 1000.00
Net Deposit: 1000.00
<TABLE>
<CAPTION>
Redeemable Value
-------------------------------------------------------------------------------------
VARKC95 VARKC95
Nom. 7.50 M.F. (0.015%) Nom. 5.00 M.F. (0.010%)
# of Years --------------------------- ---------------------------
Ending 12-94 DSC Value IRR MF IRR Value IRR MF IRR
- ------------ ---- --------- ------ ------ --------- ------ ------
<S> <C> <C> <C> <C> <C> <C> <C>
1 5.0% 931.96 -6.80% -6.82% 931.96 -6.80% -6.81%
3 5.0% 1041.38 1.36% 1.35% 1041.38 1.36% 1.35%
5 5.0% 1333.94 5.93% 5.92% 1333.94 5.93% 5.92%
10 0.0% 3264.11 12.56% 12.54% 3264.11 12.56% 12.55%
</TABLE>
Accumulation Unit Values
------------------------------------------------------------
VARKC95
VARKC95.UV
12-99-84 3.725852
12-99-89 8.661183
12-99-91 11.094388
12-99-93 12.397025
12-99-94 12.161601
(Day = 99 means end-of-month.)
<PAGE>
Aetna Income Shares (ACES ACCT C) KANSAS95.CUV
- ------------------------------------------------------------------------------
Gross Deposit: 1000.00
Net Deposit: 1000.00
<TABLE>
<CAPTION>
Redeemable Value
-------------------------------------------------------------------------------------
AISKC95 AISKC95 AISKC95
Nom. 30.00 M.F. (0.058%) Nom. 25.00 M.F. (0.049%) Nom. 20.00 M.F. (0.039%)
# of Years --------------------------- --------------------------- ---------------------------
Ending 12-94 DSC Value IRR MF IRR Value IRR MF IRR Value IRR MF IRR
- ------------ ---- --------- ------ ------ --------- ------ ------ --------- ------ ------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1 5.0% 905.30 -9.47% -9.53% 905.30 -9.47% -9.52% 905.30 -9.47% -9.51%
3 5.0% 1046.76 1.53% 1.48% 1046.76 1.53% 1.49% 1046.76 1.53% 1.50%
5 5.0% 1338.51 6.00% 5.95% 1338.51 6.00% 5.96% 1338.51 6.00% 5.97%
10 0.0% 2414.44 9.21% 9.16% 2414.44 9.21% 9.17% 2414.44 9.21% 9.18%
</TABLE>
- ------------------------------------------------------------------------------
Gross Deposit: 1000.00
Net Deposit: 1000.00
<TABLE>
<CAPTION>
Redeemable Value
-------------------------------------------------------------------------------------
AISKC95 AISKC95 AISKC95
Nom. 15.00 M.F. (0.029%) Nom. 12.50 M.F. (0.024%) Nom. 10.00 M.F. (0.019%)
# of Years --------------------------- --------------------------- ---------------------------
Ending 12-94 DSC Value IRR MF IRR Value IRR MF IRR Value IRR MF IRR
- ------------ ---- --------- ------ ------ --------- ------ ------ --------- ------ ------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1 5.0% 905.30 -9.47% -9.50% 905.30 -9.47% -9.49% 905.30 -9.47% -9.49%
3 5.0% 1046.76 1.53% 1.51% 1046.76 1.53% 1.51% 1046.76 1.53% 1.52%
5 5.0% 1338.51 6.00% 5.98% 1338.51 6.00% 5.98% 1338.51 6.00% 5.99%
10 0.0% 2414.44 9.21% 9.19% 2414.44 9.21% 9.19% 2414.44 9.21% 9.20%
</TABLE>
- ------------------------------------------------------------------------------
Gross Deposit: 1000.00
Net Deposit: 1000.00
<TABLE>
<CAPTION>
Redeemable Value
-------------------------------------------------------------------------------------
AISKC95 AISKC95
Nom. 7.50 M.F. (0.015%) Nom. 5.00 M.F. (0.010%)
# of Years --------------------------- ---------------------------
Ending 12-94 DSC Value IRR MF IRR Value IRR MF IRR
- ------------ ---- --------- ------ ------ --------- ------ ------
<S> <C> <C> <C> <C> <C> <C> <C>
1 5.0% 905.30 -9.47% -9.49% 905.30 -9.47% -9.48%
3 5.0% 1046.76 1.53% 1.52% 1046.76 1.53% 1.52%
5 5.0% 1338.51 6.00% 5.99% 1338.51 6.00% 5.99%
10 0.0% 2414.44 9.21% 9.20% 2414.44 9.21% 9.20%
</TABLE>
Accumulation Unit Values
------------------------------------------------------------
AISKC95
AISKC95.UV
12-99-84 4.510966
12-99-89 7.730161
12-99-91 9.884731
12-99-93 11.429202
12-99-94 10.891469
(Day = 99 means end-of-month.)
<PAGE>
Aetna Encore Fund (ACES ACCT C) KANSAS95.CUV
- ------------------------------------------------------------------------------
Gross Deposit: 1000.00
Net Deposit: 1000.00
<TABLE>
<CAPTION>
Redeemable Value
-------------------------------------------------------------------------------------
ENCKC95 ENCKC95 ENCKC95
Nom. 30.00 M.F. (0.058%) Nom. 25.00 M.F. (0.049%) Nom. 20.00 M.F. (0.039%)
# of Years --------------------------- --------------------------- ---------------------------
Ending 12-94 DSC Value IRR MF IRR Value IRR MF IRR Value IRR MF IRR
- ------------ ---- --------- ------ ------ --------- ------ ------ --------- ------ ------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1 5.0% 979.55 -2.05% -2.10% 979.55 -2.05% -2.09% 979.55 -2.05% -2.08%
3 5.0% 1028.29 0.93% 0.88% 1028.29 0.93% 0.89% 1028.29 0.93% 0.90%
5 5.0% 1165.46 3.11% 3.05% 1165.46 3.11% 3.06% 1165.46 3.11% 3.07%
10 0.0% 1703.33 5.47% 5.41% 1703.33 5.47% 5.42% 1703.33 5.47% 5.43%
</TABLE>
- ------------------------------------------------------------------------------
Gross Deposit: 1000.00
Net Deposit: 1000.00
<TABLE>
<CAPTION>
Redeemable Value
-------------------------------------------------------------------------------------
ENCKC95 ENCKC95 ENCKC95
Nom. 15.00 M.F. (0.029%) Nom. 12.50 M.F. (0.024%) Nom. 10.00 M.F. (0.019%)
# of Years --------------------------- --------------------------- ---------------------------
Ending 12-94 DSC Value IRR MF IRR Value IRR MF IRR Value IRR MF IRR
- ------------ ---- --------- ------ ------ --------- ------ ------ --------- ------ ------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1 5.0% 979.55 -2.05% -2.07% 979.55 -2.05% -2.07% 979.55 -2.05% -2.06%
3 5.0% 1028.29 0.93% 0.91% 1028.29 0.93% 0.91% 1028.29 0.93% 0.92%
5 5.0% 1165.46 3.11% 3.08% 1165.46 3.11% 3.09% 1165.46 3.11% 3.09%
10 0.0% 1703.33 5.47% 5.44% 1703.33 5.47% 5.45% 1703.33 5.47% 5.45%
</TABLE>
- ------------------------------------------------------------------------------
Gross Deposit: 1000.00
Net Deposit: 1000.00
<TABLE>
<CAPTION>
Redeemable Value
-------------------------------------------------------------------------------------
ENCKC95 ENCKC95
Nom. 7.50 M.F. (0.015%) Nom. 5.00 M.F. (0.010%)
# of Years --------------------------- ---------------------------
Ending 12-94 DSC Value IRR MF IRR Value IRR MF IRR
- ------------ ---- --------- ------ ------ --------- ------ ------
<S> <C> <C> <C> <C> <C> <C> <C>
1 5.0% 979.55 -2.05% -2.06% 979.55 -2.05% -2.06%
3 5.0% 1028.29 0.93% 0.92% 1028.29 0.93% 0.92%
5 5.0% 1165.46 3.11% 3.09% 1165.46 3.11% 3.10%
10 0.0% 1703.33 5.47% 5.46% 1703.33 5.47% 5.46%
</TABLE>
Accumulation Unit Values
------------------------------------------------------------
ENCKC95
ENCKC95.UV
12-99-84 6.549630
12-99-89 9.093771
12-99-91 10.306794
12-99-93 10.819649
12-99-94 11.156209
(Day = 99 means end-of-month.)
<PAGE>
AIAF (ACES ACCT C) KANSAS95.CUV
- ------------------------------------------------------------------------------
Gross Deposit: 1000.00
Net Deposit: 1000.00
<TABLE>
<CAPTION>
Redeemable Value
-------------------------------------------------------------------------------------
AIFKC95 AIFKC95 AIFKC95
Nom. 30.00 M.F. (0.058%) Nom. 25.00 M.F. (0.049%) Nom. 20.00 M.F. (0.039%)
# of Years --------------------------- --------------------------- ---------------------------
Ending 12-94 DSC Value IRR MF IRR Value IRR MF IRR Value IRR MF IRR
- ------------ ---- --------- ------ ------ --------- ------ ------ --------- ------ ------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1 5.0% 937.72 -6.23% -6.29% 937.72 -6.23% -6.28% 937.72 -6.23% -6.27%
3 5.0% 1075.44 2.45% 2.40% 1075.44 2.45% 2.40% 1075.44 2.45% 2.41%
5 5.0% 1320.22 5.71% 5.66% 1320.22 5.71% 5.66% 1320.22 5.71% 5.67%
From 06-23-89 5.0% 1380.06 6.01% 5.95% 1380.06 6.01% 5.96% 1380.06 6.01% 5.97%
</TABLE>
- ------------------------------------------------------------------------------
Gross Deposit: 1000.00
Net Deposit: 1000.00
<TABLE>
<CAPTION>
Redeemable Value
-------------------------------------------------------------------------------------
AIFKC95 AIFKC95 AIFKC95
Nom. 15.00 M.F. (0.029%) Nom. 12.50 M.F. (0.024%) Nom. 10.00 M.F. (0.019%)
# of Years --------------------------- --------------------------- ---------------------------
Ending 12-94 DSC Value IRR MF IRR Value IRR MF IRR Value IRR MF IRR
- ------------ ---- --------- ------ ------ --------- ------ ------ --------- ------ ------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1 5.0% 937.72 -6.23% -6.26% 937.72 -6.23% -6.25% 937.72 -6.23% -6.25%
3 5.0% 1075.44 2.45% 2.42% 1075.44 2.45% 2.43% 1075.44 2.45% 2.43%
5 5.0% 1320.22 5.71% 5.68% 1320.22 5.71% 5.69% 1320.22 5.71% 5.69%
From 06-23-89 5.0% 1380.06 6.01% 5.98% 1380.06 6.01% 5.98% 1380.06 6.01% 5.99%
</TABLE>
- ------------------------------------------------------------------------------
Gross Deposit: 1000.00
Net Deposit: 1000.00
<TABLE>
<CAPTION>
Redeemable Value
-------------------------------------------------------------------------------------
AIFKC95 AIFKC95
Nom. 7.50 M.F. (0.015%) Nom. 5.00 M.F. (0.010%)
# of Years --------------------------- ---------------------------
Ending 12-94 DSC Value IRR MF IRR Value IRR MF IRR
- ------------ ---- --------- ------ ------ --------- ------ ------
<S> <C> <C> <C> <C> <C> <C> <C>
1 5.0% 937.72 -6.23% -6.24% 937.72 -6.23% -6.24%
3 5.0% 1075.44 2.45% 2.44% 1075.44 2.45% 2.44%
5 5.0% 1320.22 5.71% 5.70% 1320.22 5.71% 5.70%
From 06-23-89 5.0% 1380.06 6.01% 5.99% 1380.06 6.01% 6.00%
</TABLE>
Accumulation Unit Values
------------------------------------------------------------
AIFKC95
AIFKC95.UV
06-23-89 7.615822 i
12-99-89 7.961087
12-99-91 9.773076
12-99-93 11.208476
12-99-94 11.063514 i
(Unit values marked "i" are used for from-inception calculations.)
(Day = 99 means end-of-month.)
<PAGE>
Alger Growth (ACES ACCT C) KANSAS95.CUV
- ------------------------------------------------------------------------------
Gross Deposit: 1000.00
Net Deposit: 1000.00
<TABLE>
<CAPTION>
Redeemable Value
-------------------------------------------------------------------------------------
ALGGKC95 ALGGKC95 ALGGKC95
Nom. 30.00 M.F. (0.058%) Nom. 25.00 M.F. (0.049%) Nom. 20.00 M.F. (0.039%)
# of Years --------------------------- --------------------------- ---------------------------
Ending 12-94 DSC Value IRR MF IRR Value IRR MF IRR Value IRR MF IRR
- ------------ ---- --------- ------ ------ --------- ------ ------ --------- ------ ------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1 5.0% 954.63 -4.54% -4.60% 954.63 -4.54% -4.59% 954.63 -4.54% -4.58%
3 5.0% 1289.05 8.83% 8.77% 1289.05 8.83% 8.78% 1289.05 8.83% 8.79%
5 5.0% 1849.07 13.08% 13.02% 1849.07 13.08% 13.03% 1849.07 13.08% 13.04%
From 01-08-89 5.0% 2273.49 14.73% 14.67% 2273.49 14.73% 14.68% 2273.49 14.73% 14.69%
</TABLE>
- ------------------------------------------------------------------------------
Gross Deposit: 1000.00
Net Deposit: 1000.00
<TABLE>
<CAPTION>
Redeemable Value
-------------------------------------------------------------------------------------
ALGGKC95 ALGGKC95 ALGGKC95
Nom. 15.00 M.F. (0.029%) Nom. 12.50 M.F. (0.024%) Nom. 10.00 M.F. (0.019%)
# of Years --------------------------- --------------------------- ---------------------------
Ending 12-94 DSC Value IRR MF IRR Value IRR MF IRR Value IRR MF IRR
- ------------ ---- --------- ------ ------ --------- ------ ------ --------- ------ ------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1 5.0% 954.63 -4.54% -4.57% 954.63 -4.54% -4.56% 954.63 -4.54% -4.56%
3 5.0% 1289.05 8.83% 8.80% 1289.05 8.83% 8.81% 1289.05 8.83% 8.81%
5 5.0% 1849.07 13.08% 13.05% 1849.07 13.08% 13.06% 1849.07 13.08% 13.06%
From 01-08-89 5.0% 2273.49 14.73% 14.70% 2273.49 14.73% 14.70% 2273.49 14.73% 14.71%
</TABLE>
- ------------------------------------------------------------------------------
Gross Deposit: 1000.00
Net Deposit: 1000.00
<TABLE>
<CAPTION>
Redeemable Value
-------------------------------------------------------------------------------------
ALGGKC95 ALGGKC95
Nom. 7.50 M.F. (0.015%) Nom. 5.00 M.F. (0.010%)
# of Years --------------------------- ---------------------------
Ending 12-94 DSC Value IRR MF IRR Value IRR MF IRR
- ------------ ---- --------- ------ ------ --------- ------ ------
<S> <C> <C> <C> <C> <C> <C> <C>
1 5.0% 954.63 -4.54% -4.55% 954.63 -4.54% -4.55%
3 5.0% 1289.05 8.83% 8.82% 1289.05 8.83% 8.82%
5 5.0% 1849.07 13.08% 13.07% 1849.07 13.08% 13.07%
From 01-08-89 5.0% 2273.49 14.73% 14.71% 2273.49 14.73% 14.72%
</TABLE>
Accumulation Unit Values
------------------------------------------------------------
ALGGKC95
ALGGKC95.UV
01-08-89 3.208363 i
12-99-89 3.944777
12-99-91 5.658535
12-99-93 7.640881
12-99-94 7.678092 i
(Unit values marked "i" are used for from-inception calculations.)
(Day = 99 means end-of-month.)
<PAGE>
Alger Small Cap (ACES ACCT C) KANSAS95.CUV
- ------------------------------------------------------------------------------
Gross Deposit: 1000.00
Net Deposit: 1000.00
<TABLE>
<CAPTION>
Redeemable Value
-------------------------------------------------------------------------------------
ALSCKC95 ALSCKC95 ALSCKC95
Nom. 30.00 M.F. (0.058%) Nom. 25.00 M.F. (0.049%) Nom. 20.00 M.F. (0.039%)
# of Years --------------------------- --------------------------- ---------------------------
Ending 12-94 DSC Value IRR MF IRR Value IRR MF IRR Value IRR MF IRR
- ------------ ---- --------- ------ ------ --------- ------ ------ --------- ------ ------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1 5.0% 902.98 -9.70% -9.76% 902.98 -9.70% -9.75% 902.98 -9.70% -9.74%
3 5.0% 1027.87 0.92% 0.86% 1027.87 0.92% 0.87% 1027.87 0.92% 0.88%
5 5.0% 1726.95 11.55% 11.49% 1726.95 11.55% 11.50% 1726.95 11.55% 11.51%
From 09-21-88 5.0% 2712.14 17.23% 17.17% 2712.14 17.23% 17.18% 2712.14 17.23% 17.19%
</TABLE>
- ------------------------------------------------------------------------------
Gross Deposit: 1000.00
Net Deposit: 1000.00
<TABLE>
<CAPTION>
Redeemable Value
-------------------------------------------------------------------------------------
ALSCKC95 ALSCKC95 ALSCKC95
Nom. 15.00 M.F. (0.029%) Nom. 12.50 M.F. (0.024%) Nom. 10.00 M.F. (0.019%)
# of Years --------------------------- --------------------------- ---------------------------
Ending 12-94 DSC Value IRR MF IRR Value IRR MF IRR Value IRR MF IRR
- ------------ ---- --------- ------ ------ --------- ------ ------ --------- ------ ------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1 5.0% 902.98 -9.70% -9.73% 902.98 -9.70% -9.73% 902.98 -9.70% -9.72%
3 5.0% 1027.87 0.92% 0.89% 1027.87 0.92% 0.90% 1027.87 0.92% 0.90%
5 5.0% 1726.95 11.55% 11.52% 1726.95 11.55% 11.52% 1726.95 11.55% 11.53%
From 09-21-88 5.0% 2712.14 17.23% 17.20% 2712.14 17.23% 17.21% 2712.14 17.23% 17.21%
</TABLE>
- ------------------------------------------------------------------------------
Gross Deposit: 1000.00
Net Deposit: 1000.00
<TABLE>
<CAPTION>
Redeemable Value
-------------------------------------------------------------------------------------
ALSCKC95 ALSCKC95
Nom. 7.50 M.F. (0.015%) Nom. 5.00 M.F. (0.010%)
# of Years --------------------------- ---------------------------
Ending 12-94 DSC Value IRR MF IRR Value IRR MF IRR
- ------------ ---- --------- ------ ------ --------- ------ ------
<S> <C> <C> <C> <C> <C> <C> <C>
1 5.0% 902.98 -9.70% -9.72% 902.98 -9.70% -9.71%
3 5.0% 1027.87 0.92% 0.91% 1027.87 0.92% 0.91%
5 5.0% 1726.95 11.55% 11.53% 1726.95 11.55% 11.54%
From 09-21-88 5.0% 2712.14 17.23% 17.22% 2712.14 17.23% 17.22%
</TABLE>
Accumulation Unit Values
------------------------------------------------------------
ALSCKC95
ALSCKC95.UV
09-21-88 3.368489 i
12-99-89 5.290138
12-99-91 8.888095
12-99-93 10.117394
12-99-94 9.616635 i
(Unit values marked "i" are used for from-inception calculations.)
(Day = 99 means end-of-month.)
<PAGE>
Calvert Responsibly Invested Balanced Portfolio (ACES ACCT C) KANSAS95.CUV
- ------------------------------------------------------------------------------
Gross Deposit: 1000.00
Net Deposit: 1000.00
<TABLE>
<CAPTION>
Redeemable Value
-------------------------------------------------------------------------------------
CALKC95 CALKC95 CALKC95
Nom. 30.00 M.F. (0.058%) Nom. 25.00 M.F. (0.049%) Nom. 20.00 M.F. (0.039%)
# of Years --------------------------- --------------------------- ---------------------------
Ending 12-94 DSC Value IRR MF IRR Value IRR MF IRR Value IRR MF IRR
- ------------ ---- --------- ------ ------ --------- ------ ------ --------- ------ ------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1 5.0% 911.22 -8.88% -8.94% 911.22 -8.88% -8.93% 911.22 -8.88% -8.92%
3 5.0% 1041.24 1.36% 1.30% 1041.24 1.36% 1.31% 1041.24 1.36% 1.32%
5 5.0% 1279.94 5.06% 5.00% 1279.94 5.06% 5.01% 1279.94 5.06% 5.02%
From 09-99-86 5.0% 1912.79 8.18% 8.12% 1912.79 8.18% 8.13% 1912.79 8.18% 8.14%
</TABLE>
- ------------------------------------------------------------------------------
Gross Deposit: 1000.00
Net Deposit: 1000.00
<TABLE>
<CAPTION>
Redeemable Value
-------------------------------------------------------------------------------------
CALKC95 CALKC95 CALKC95
Nom. 15.00 M.F. (0.029%) Nom. 12.50 M.F. (0.024%) Nom. 10.00 M.F. (0.019%)
# of Years --------------------------- --------------------------- ---------------------------
Ending 12-94 DSC Value IRR MF IRR Value IRR MF IRR Value IRR MF IRR
- ------------ ---- --------- ------ ------ --------- ------ ------ --------- ------ ------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1 5.0% 911.22 -8.88% -8.91% 911.22 -8.88% -8.90% 911.22 -8.88% -8.90%
3 5.0% 1041.24 1.36% 1.33% 1041.24 1.36% 1.33% 1041.24 1.36% 1.34%
5 5.0% 1279.94 5.06% 5.03% 1279.94 5.06% 5.04% 1279.94 5.06% 5.04%
From 09-99-86 5.0% 1912.79 8.18% 8.15% 1912.79 8.18% 8.15% 1912.79 8.18% 8.16%
</TABLE>
- ------------------------------------------------------------------------------
Gross Deposit: 1000.00
Net Deposit: 1000.00
<TABLE>
<CAPTION>
Redeemable Value
-------------------------------------------------------------------------------------
CALKC95 CALKC95
Nom. 7.50 M.F. (0.015%) Nom. 5.00 M.F. (0.010%)
# of Years --------------------------- ---------------------------
Ending 12-94 DSC Value IRR MF IRR Value IRR MF IRR
- ------------ ---- --------- ------ ------ --------- ------ ------
<S> <C> <C> <C> <C> <C> <C> <C>
1 5.0% 911.22 -8.88% -8.89% 911.22 -8.88% -8.89%
3 5.0% 1041.24 1.36% 1.34% 1041.24 1.36% 1.35%
5 5.0% 1279.94 5.06% 5.05% 1279.94 5.06% 5.05%
From 09-99-86 5.0% 1912.79 8.18% 8.16% 1912.79 8.18% 8.17%
</TABLE>
Accumulation Unit Values
------------------------------------------------------------
CALKC95
CALKC95.UV
09-99-86 5.373079 i
12-99-89 8.029757
12-99-91 9.870547
12-99-93 11.278888
12-99-94 10.818475 i
(Unit values marked "i" are used for from-inception calculations.)
(Day = 99 means end-of-month.)
<PAGE>
Franklin Government Securities (ACES ACCT C) KANSAS95.CUV
- ------------------------------------------------------------------------------
Gross Deposit: 1000.00
Net Deposit: 1000.00
<TABLE>
<CAPTION>
Redeemable Value
-------------------------------------------------------------------------------------
FRKKC95 FRKKC95 FRKKC95
Nom. 30.00 M.F. (0.058%) Nom. 25.00 M.F. (0.049%) Nom. 20.00 M.F. (0.039%)
# of Years --------------------------- --------------------------- ---------------------------
Ending 12-94 DSC Value IRR MF IRR Value IRR MF IRR Value IRR MF IRR
- ------------ ---- --------- ------ ------ --------- ------ ------ --------- ------ ------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1 5.0% 906.01 -9.40% -9.46% 906.01 -9.40% -9.45% 906.01 -9.40% -9.44%
3 5.0% 1027.62 0.91% 0.85% 1027.62 0.91% 0.86% 1027.62 0.91% 0.87%
5 5.0% 1291.50 5.25% 5.19% 1291.50 5.25% 5.20% 1291.50 5.25% 5.21%
From 05-30-89 5.0% 1368.99 5.78% 5.72% 1368.99 5.78% 5.73% 1368.99 5.78% 5.74%
</TABLE>
- ------------------------------------------------------------------------------
Gross Deposit: 1000.00
Net Deposit: 1000.00
<TABLE>
<CAPTION>
Redeemable Value
-------------------------------------------------------------------------------------
FRKKC95 FRKKC95 FRKKC95
Nom. 15.00 M.F. (0.029%) Nom. 12.50 M.F. (0.024%) Nom. 10.00 M.F. (0.019%)
# of Years --------------------------- --------------------------- ---------------------------
Ending 12-94 DSC Value IRR MF IRR Value IRR MF IRR Value IRR MF IRR
- ------------ ---- --------- ------ ------ --------- ------ ------ --------- ------ ------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1 5.0% 906.01 -9.40% -9.43% 906.01 -9.40% -9.42% 906.01 -9.40% -9.42%
3 5.0% 1027.62 0.91% 0.88% 1027.62 0.91% 0.89% 1027.62 0.91% 0.89%
5 5.0% 1291.50 5.25% 5.22% 1291.50 5.25% 5.23% 1291.50 5.25% 5.23%
From 05-30-89 5.0% 1368.99 5.78% 5.75% 1368.99 5.78% 5.76% 1368.99 5.78% 5.76%
</TABLE>
- ------------------------------------------------------------------------------
Gross Deposit: 1000.00
Net Deposit: 1000.00
<TABLE>
<CAPTION>
Redeemable Value
-------------------------------------------------------------------------------------
FRKKC95 FRKKC95
Nom. 7.50 M.F. (0.015%) Nom. 5.00 M.F. (0.010%)
# of Years --------------------------- ---------------------------
Ending 12-94 DSC Value IRR MF IRR Value IRR MF IRR
- ------------ ---- --------- ------ ------ --------- ------ ------
<S> <C> <C> <C> <C> <C> <C> <C>
1 5.0% 906.01 -9.40% -9.41% 906.01 -9.40% -9.41%
3 5.0% 1027.62 0.91% 0.90% 1027.62 0.91% 0.90%
5 5.0% 1291.50 5.25% 5.23% 1291.50 5.25% 5.24%
From 05-30-89 5.0% 1368.99 5.78% 5.77% 1368.99 5.78% 5.77%
</TABLE>
Accumulation Unit Values
------------------------------------------------------------
FRKKC95
FRKKC95.UV
05-30-89 7.140509 i
12-99-89 7.568976
12-99-91 9.512487
12-99-93 10.789298
12-99-94 10.289762 i
(Unit values marked "i" are used for from-inception calculations.)
(Day = 99 means end-of-month.)
<PAGE>
Fidelity Growth (ACES ACCT C) KANSAS95.CUV
- ------------------------------------------------------------------------------
Gross Deposit: 1000.00
Net Deposit: 1000.00
<TABLE>
<CAPTION>
Redeemable Value
-------------------------------------------------------------------------------------
FDEGKC95 FDEGKC95 FDEGKC95
Nom. 30.00 M.F. (0.058%) Nom. 25.00 M.F. (0.049%) Nom. 20.00 M.F. (0.039%)
# of Years --------------------------- --------------------------- ---------------------------
Ending 12-94 DSC Value IRR MF IRR Value IRR MF IRR Value IRR MF IRR
- ------------ ---- --------- ------ ------ --------- ------ ------ --------- ------ ------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1 5.0% 940.83 -5.92% -5.98% 940.83 -5.92% -5.97% 940.83 -5.92% -5.96%
3 5.0% 1204.65 6.40% 6.34% 1204.65 6.40% 6.35% 1204.65 6.40% 6.36%
5 5.0% 1518.13 8.71% 8.65% 1518.13 8.71% 8.66% 1518.13 8.71% 8.67%
From 11-07-86 5.0% 2328.73 10.93% 10.87% 2328.73 10.93% 10.88% 2328.73 10.93% 10.89%
</TABLE>
- ------------------------------------------------------------------------------
Gross Deposit: 1000.00
Net Deposit: 1000.00
<TABLE>
<CAPTION>
Redeemable Value
-------------------------------------------------------------------------------------
FDEGKC95 FDEGKC95 FDEGKC95
Nom. 15.00 M.F. (0.029%) Nom. 12.50 M.F. (0.024%) Nom. 10.00 M.F. (0.019%)
# of Years --------------------------- --------------------------- ---------------------------
Ending 12-94 DSC Value IRR MF IRR Value IRR MF IRR Value IRR MF IRR
- ------------ ---- --------- ------ ------ --------- ------ ------ --------- ------ ------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1 5.0% 940.83 -5.92% -5.95% 940.83 -5.92% -5.94% 940.83 -5.92% -5.94%
3 5.0% 1204.65 6.40% 6.37% 1204.65 6.40% 6.38% 1204.65 6.40% 6.38%
5 5.0% 1518.13 8.71% 8.68% 1518.13 8.71% 8.68% 1518.13 8.71% 8.69%
From 11-07-86 5.0% 2328.73 10.93% 10.90% 2328.73 10.93% 10.91% 2328.73 10.93% 10.91%
</TABLE>
- ------------------------------------------------------------------------------
Gross Deposit: 1000.00
Net Deposit: 1000.00
<TABLE>
<CAPTION>
Redeemable Value
-------------------------------------------------------------------------------------
FDEGKC95 FDEGKC95
Nom. 7.50 M.F. (0.015%) Nom. 5.00 M.F. (0.010%)
# of Years --------------------------- ---------------------------
Ending 12-94 DSC Value IRR MF IRR Value IRR MF IRR
- ------------ ---- --------- ------ ------ --------- ------ ------
<S> <C> <C> <C> <C> <C> <C> <C>
1 5.0% 940.83 -5.92% -5.93% 940.83 -5.92% -5.93%
3 5.0% 1204.65 6.40% 6.39% 1204.65 6.40% 6.39%
5 5.0% 1518.13 8.71% 8.69% 1518.13 8.71% 8.70%
From 11-07-86 5.0% 2328.73 10.93% 10.92% 2328.73 10.93% 10.92%
</TABLE>
Accumulation Unit Values
------------------------------------------------------------
FDEGKC95
FDEGKC95.UV
11-07-86 3.147478 i
12-99-89 4.828040
12-99-91 6.084428
12-99-93 7.790527
12-99-94 7.715373 i
(Unit values marked "i" are used for from-inception calculations.)
(Day = 99 means end-of-month.)
<PAGE>
Fidelity Equity Income (ACES ACCT C) KANSAS95.CUV
- ------------------------------------------------------------------------------
Gross Deposit: 1000.00
Net Deposit: 1000.00
<TABLE>
<CAPTION>
Redeemable Value
-------------------------------------------------------------------------------------
FDEIKC95 FDEIKC95 FDEIKC95
Nom. 30.00 M.F. (0.058%) Nom. 25.00 M.F. (0.049%) Nom. 20.00 M.F. (0.039%)
# of Years --------------------------- --------------------------- ---------------------------
Ending 12-94 DSC Value IRR MF IRR Value IRR MF IRR Value IRR MF IRR
- ------------ ---- --------- ------ ------ --------- ------ ------ --------- ------ ------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1 5.0% 1007.47 0.75% 0.69% 1007.47 0.75% 0.70% 1007.47 0.75% 0.71%
3 5.0% 1366.82 10.98% 10.92% 1366.82 10.98% 10.93% 1366.82 10.98% 10.94%
5 5.0% 1493.22 8.35% 8.29% 1493.22 8.35% 8.30% 1493.22 8.35% 8.31%
From 10-22-86 5.0% 2066.43 9.26% 9.21% 2066.43 9.26% 9.22% 2066.43 9.26% 9.23%
</TABLE>
- ------------------------------------------------------------------------------
Gross Deposit: 1000.00
Net Deposit: 1000.00
<TABLE>
<CAPTION>
Redeemable Value
-------------------------------------------------------------------------------------
FDEIKC95 FDEIKC95 FDEIKC95
Nom. 15.00 M.F. (0.029%) Nom. 12.50 M.F. (0.024%) Nom. 10.00 M.F. (0.019%)
# of Years --------------------------- --------------------------- ---------------------------
Ending 12-94 DSC Value IRR MF IRR Value IRR MF IRR Value IRR MF IRR
- ------------ ---- --------- ------ ------ --------- ------ ------ --------- ------ ------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1 5.0% 1007.47 0.75% 0.72% 1007.47 0.75% 0.72% 1007.47 0.75% 0.73%
3 5.0% 1366.82 10.98% 10.95% 1366.82 10.98% 10.95% 1366.82 10.98% 10.96%
5 5.0% 1493.22 8.35% 8.32% 1493.22 8.35% 8.32% 1493.22 8.35% 8.33%
From 10-22-86 5.0% 2066.43 9.26% 9.24% 2066.43 9.26% 9.24% 2066.43 9.26% 9.25%
</TABLE>
- ------------------------------------------------------------------------------
Gross Deposit: 1000.00
Net Deposit: 1000.00
<TABLE>
<CAPTION>
Redeemable Value
-------------------------------------------------------------------------------------
FDEIKC95 FDEIKC95
Nom. 7.50 M.F. (0.015%) Nom. 5.00 M.F. (0.010%)
# of Years --------------------------- ---------------------------
Ending 12-94 DSC Value IRR MF IRR Value IRR MF IRR
- ------------ ---- --------- ------ ------ --------- ------ ------
<S> <C> <C> <C> <C> <C> <C> <C>
1 5.0% 1007.47 0.75% 0.73% 1007.47 0.75% 0.74%
3 5.0% 1366.82 10.98% 10.96% 1366.82 10.98% 10.97%
5 5.0% 1493.22 8.35% 8.33% 1493.22 8.35% 8.34%
From 10-22-86 5.0% 2066.43 9.26% 9.25% 2066.43 9.26% 9.25%
</TABLE>
Accumulation Unit Values
------------------------------------------------------------
FDEIKC95
FDEIKC95.UV
10-22-86 3.916857 i
12-99-89 5.420469
12-99-91 5.921706
12-99-93 8.033922
12-99-94 8.519924 i
(Unit values marked "i" are used for from-inception calculations.)
(Day = 99 means end-of-month.)
<PAGE>
Fidelity Overseas (ACES ACCT C) KANSAS95.CUV
- ------------------------------------------------------------------------------
Gross Deposit: 1000.00
Net Deposit: 1000.00
<TABLE>
<CAPTION>
Redeemable Value
-------------------------------------------------------------------------------------
FDOSKC95 FDOSKC95 FDOSKC95
Nom. 30.00 M.F. (0.058%) Nom. 25.00 M.F. (0.049%) Nom. 20.00 M.F. (0.039%)
# of Years --------------------------- --------------------------- ---------------------------
Ending 12-94 DSC Value IRR MF IRR Value IRR MF IRR Value IRR MF IRR
- ------------ ---- --------- ------ ------ --------- ------ ------ --------- ------ ------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1 5.0% 957.25 -4.28% -4.33% 957.25 -4.28% -4.32% 957.25 -4.28% -4.31%
3 5.0% 1151.74 4.82% 4.76% 1151.74 4.82% 4.77% 1151.74 4.82% 4.78%
5 5.0% 1200.14 3.72% 3.66% 1200.14 3.72% 3.67% 1200.14 3.72% 3.68%
From 02-13-87 5.0% 1508.77 5.36% 5.30% 1508.77 5.36% 5.31% 1508.77 5.36% 5.32%
</TABLE>
- ------------------------------------------------------------------------------
Gross Deposit: 1000.00
Net Deposit: 1000.00
<TABLE>
<CAPTION>
Redeemable Value
-------------------------------------------------------------------------------------
FDOSKC95 FDOSKC95 FDOSKC95
Nom. 15.00 M.F. (0.029%) Nom. 12.50 M.F. (0.024%) Nom. 10.00 M.F. (0.019%)
# of Years --------------------------- --------------------------- ---------------------------
Ending 12-94 DSC Value IRR MF IRR Value IRR MF IRR Value IRR MF IRR
- ------------ ---- --------- ------ ------ --------- ------ ------ --------- ------ ------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1 5.0% 957.25 -4.28% -4.30% 957.25 -4.28% -4.30% 957.25 -4.28% -4.29%
3 5.0% 1151.74 4.82% 4.79% 1151.74 4.82% 4.80% 1151.74 4.82% 4.80%
5 5.0% 1200.14 3.72% 3.69% 1200.14 3.72% 3.69% 1200.14 3.72% 3.70%
From 02-13-87 5.0% 1508.77 5.36% 5.33% 1508.77 5.36% 5.33% 1508.77 5.36% 5.34%
</TABLE>
- ------------------------------------------------------------------------------
Gross Deposit: 1000.00
Net Deposit: 1000.00
<TABLE>
<CAPTION>
Redeemable Value
-------------------------------------------------------------------------------------
FDOSKC95 FDOSKC95
Nom. 7.50 M.F. (0.015%) Nom. 5.00 M.F. (0.010%)
# of Years --------------------------- ---------------------------
Ending 12-94 DSC Value IRR MF IRR Value IRR MF IRR
- ------------ ---- --------- ------ ------ --------- ------ ------
<S> <C> <C> <C> <C> <C> <C> <C>
1 5.0% 957.25 -4.28% -4.29% 957.25 -4.28% -4.29%
3 5.0% 1151.74 4.82% 4.81% 1151.74 4.82% 4.81%
5 5.0% 1200.14 3.72% 3.70% 1200.14 3.72% 3.71%
From 02-13-87 5.0% 1508.77 5.36% 5.34% 1508.77 5.36% 5.35%
</TABLE>
Accumulation Unit Values
------------------------------------------------------------
FDOSKC95
FDOSKC95.UV
02-13-87 5.928449 i
12-99-89 7.453055
12-99-91 7.766159
12-99-93 9.344147
12-99-94 9.415418 i
(Unit values marked "i" are used for from-inception calculations.)
(Day = 99 means end-of-month.)
<PAGE>
Janus Aspen Aggressive Growth (ACES ACCT C) KANSAS95.CUV
- ------------------------------------------------------------------------------
Gross Deposit: 1000.00
Net Deposit: 1000.00
<TABLE>
<CAPTION>
Redeemable Value
-------------------------------------------------------------------------------------
JAGKC95 JAGKC95 JAGKC95
Nom. 30.00 M.F. (0.058%) Nom. 25.00 M.F. (0.049%) Nom. 20.00 M.F. (0.039%)
# of Years --------------------------- --------------------------- ---------------------------
Ending 12-94 DSC Value IRR MF IRR Value IRR MF IRR Value IRR MF IRR
- ------------ ---- --------- ------ ------ --------- ------ ------ --------- ------ ------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1 5.0% 1094.90 9.49% 9.43% 1094.90 9.49% 9.44% 1094.90 9.49% 9.45%
From 09-13-93 5.0% 1288.87 21.58% 21.52% 1288.87 21.58% 21.53% 1288.87 21.58% 21.54%
From 09-13-93 5.0% 1288.87 21.58% 21.52% 1288.87 21.58% 21.53% 1288.87 21.58% 21.54%
From 09-13-93 5.0% 1288.87 21.58% 21.52% 1288.87 21.58% 21.53% 1288.87 21.58% 21.54%
</TABLE>
- ------------------------------------------------------------------------------
Gross Deposit: 1000.00
Net Deposit: 1000.00
<TABLE>
<CAPTION>
Redeemable Value
-------------------------------------------------------------------------------------
JAGKC95 JAGKC95 JAGKC95
Nom. 15.00 M.F. (0.029%) Nom. 12.50 M.F. (0.024%) Nom. 10.00 M.F. (0.019%)
# of Years --------------------------- --------------------------- ---------------------------
Ending 12-94 DSC Value IRR MF IRR Value IRR MF IRR Value IRR MF IRR
- ------------ ---- --------- ------ ------ --------- ------ ------ --------- ------ ------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1 5.0% 1094.90 9.49% 9.46% 1094.90 9.49% 9.47% 1094.90 9.49% 9.47%
From 09-13-93 5.0% 1288.87 21.58% 21.55% 1288.87 21.58% 21.56% 1288.87 21.58% 21.56%
From 09-13-93 5.0% 1288.87 21.58% 21.55% 1288.87 21.58% 21.56% 1288.87 21.58% 21.56%
From 09-13-93 5.0% 1288.87 21.58% 21.55% 1288.87 21.58% 21.56% 1288.87 21.58% 21.56%
</TABLE>
- ------------------------------------------------------------------------------
Gross Deposit: 1000.00
Net Deposit: 1000.00
<TABLE>
<CAPTION>
Redeemable Value
-------------------------------------------------------------------------------------
JAGKC95 JAGKC95
Nom. 7.50 M.F. (0.015%) Nom. 5.00 M.F. (0.010%)
# of Years --------------------------- ---------------------------
Ending 12-94 DSC Value IRR MF IRR Value IRR MF IRR
- ------------ ---- --------- ------ ------ --------- ------ ------
<S> <C> <C> <C> <C> <C> <C> <C>
1 5.0% 1094.90 9.49% 9.48% 1094.90 9.49% 9.48%
From 09-13-93 5.0% 1288.87 21.58% 21.57% 1288.87 21.58% 21.57%
From 09-13-93 5.0% 1288.87 21.58% 21.57% 1288.87 21.58% 21.57%
From 09-13-93 5.0% 1288.87 21.58% 21.57% 1288.87 21.58% 21.57%
</TABLE>
Accumulation Unit Values
------------------------------------------------------------
JAGKC95
JAGKC95.UV
09-13-93 7.829372 i
12-99-93 9.216405
12-99-94 10.622208 i
(Unit values marked "i" are used for from-inception calculations.)
(Day = 99 means end-of-month.)
<PAGE>
Janus Aspen Balanced (ACES ACCT C) KANSAS95.CUV
- ------------------------------------------------------------------------------
Gross Deposit: 1000.00
Net Deposit: 1000.00
<TABLE>
<CAPTION>
Redeemable Value
-------------------------------------------------------------------------------------
JBALKC95 JBALKC95 JBALKC95
Nom. 30.00 M.F. (0.058%) Nom. 25.00 M.F. (0.049%) Nom. 20.00 M.F. (0.039%)
# of Years --------------------------- --------------------------- ---------------------------
Ending 12-94 DSC Value IRR MF IRR Value IRR MF IRR Value IRR MF IRR
- ------------ ---- --------- ------ ------ --------- ------ ------ --------- ------ ------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1 5.0% 949.00 -5.10% -5.16% 949.00 -5.10% -5.15% 949.00 -5.10% -5.14%
From 09-13-93 5.0% 1014.46 1.11% 1.05% 1014.46 1.11% 1.06% 1014.46 1.11% 1.07%
From 09-13-93 5.0% 1014.46 1.11% 1.05% 1014.46 1.11% 1.06% 1014.46 1.11% 1.07%
From 09-13-93 5.0% 1014.46 1.11% 1.05% 1014.46 1.11% 1.06% 1014.46 1.11% 1.07%
</TABLE>
- ------------------------------------------------------------------------------
Gross Deposit: 1000.00
Net Deposit: 1000.00
<TABLE>
<CAPTION>
Redeemable Value
-------------------------------------------------------------------------------------
JBALKC95 JBALKC95 JBALKC95
Nom. 15.00 M.F. (0.029%) Nom. 12.50 M.F. (0.024%) Nom. 10.00 M.F. (0.019%)
# of Years --------------------------- --------------------------- ---------------------------
Ending 12-94 DSC Value IRR MF IRR Value IRR MF IRR Value IRR MF IRR
- ------------ ---- --------- ------ ------ --------- ------ ------ --------- ------ ------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1 5.0% 949.00 -5.10% -5.13% 949.00 -5.10% -5.12% 949.00 -5.10% -5.12%
From 09-13-93 5.0% 1014.46 1.11% 1.08% 1014.46 1.11% 1.09% 1014.46 1.11% 1.09%
From 09-13-93 5.0% 1014.46 1.11% 1.08% 1014.46 1.11% 1.09% 1014.46 1.11% 1.09%
From 09-13-93 5.0% 1014.46 1.11% 1.08% 1014.46 1.11% 1.09% 1014.46 1.11% 1.09%
</TABLE>
- ------------------------------------------------------------------------------
Gross Deposit: 1000.00
Net Deposit: 1000.00
<TABLE>
<CAPTION>
Redeemable Value
-------------------------------------------------------------------------------------
JBALKC95 JBALKC95
Nom. 7.50 M.F. (0.015%) Nom. 5.00 M.F. (0.010%)
# of Years --------------------------- ---------------------------
Ending 12-94 DSC Value IRR MF IRR Value IRR MF IRR
- ------------ ---- --------- ------ ------ --------- ------ ------
<S> <C> <C> <C> <C> <C> <C> <C>
1 5.0% 949.00 -5.10% -5.12% 949.00 -5.10% -5.11%
From 09-13-93 5.0% 1014.46 1.11% 1.10% 1014.46 1.11% 1.10%
From 09-13-93 5.0% 1014.46 1.11% 1.10% 1014.46 1.11% 1.10%
From 09-13-93 5.0% 1014.46 1.11% 1.10% 1014.46 1.11% 1.10%
</TABLE>
Accumulation Unit Values
------------------------------------------------------------
JBALKC95
JBALKC95.UV
09-13-93 8.276858 i
12-99-93 8.847734
12-99-94 8.838408 i
(Unit values marked "i" are used for from-inception calculations.)
(Day = 99 means end-of-month.)
<PAGE>
Janus Aspen Growth (ACES ACCT C) KANSAS95.CUV
- ------------------------------------------------------------------------------
Gross Deposit: 1000.00
Net Deposit: 1000.00
<TABLE>
<CAPTION>
Redeemable Value
-------------------------------------------------------------------------------------
JGROKC95 JGROKC95 JGROKC95
Nom. 30.00 M.F. (0.058%) Nom. 25.00 M.F. (0.049%) Nom. 20.00 M.F. (0.039%)
# of Years --------------------------- --------------------------- ---------------------------
Ending 12-94 DSC Value IRR MF IRR Value IRR MF IRR Value IRR MF IRR
- ------------ ---- --------- ------ ------ --------- ------ ------ --------- ------ ------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1 5.0% 967.01 -3.30% -3.36% 967.01 -3.30% -3.35% 967.01 -3.30% -3.34%
From 09-13-93 5.0% 998.02 -0.15% -0.21% 998.02 -0.15% -0.20% 998.02 -0.15% -0.19%
From 09-13-93 5.0% 998.02 -0.15% -0.21% 998.02 -0.15% -0.20% 998.02 -0.15% -0.19%
From 09-13-93 5.0% 998.02 -0.15% -0.21% 998.02 -0.15% -0.20% 998.02 -0.15% -0.19%
</TABLE>
- ------------------------------------------------------------------------------
Gross Deposit: 1000.00
Net Deposit: 1000.00
<TABLE>
<CAPTION>
Redeemable Value
-------------------------------------------------------------------------------------
JGROKC95 JGROKC95 JGROKC95
Nom. 15.00 M.F. (0.029%) Nom. 12.50 M.F. (0.024%) Nom. 10.00 M.F. (0.019%)
# of Years --------------------------- --------------------------- ---------------------------
Ending 12-94 DSC Value IRR MF IRR Value IRR MF IRR Value IRR MF IRR
- ------------ ---- --------- ------ ------ --------- ------ ------ --------- ------ ------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1 5.0% 967.01 -3.30% -3.33% 967.01 -3.30% -3.32% 967.01 -3.30% -3.32%
From 09-13-93 5.0% 998.02 -0.15% -0.18% 998.02 -0.15% -0.18% 998.02 -0.15% -0.17%
From 09-13-93 5.0% 998.02 -0.15% -0.18% 998.02 -0.15% -0.18% 998.02 -0.15% -0.17%
From 09-13-93 5.0% 998.02 -0.15% -0.18% 998.02 -0.15% -0.18% 998.02 -0.15% -0.17%
</TABLE>
- ------------------------------------------------------------------------------
Gross Deposit: 1000.00
Net Deposit: 1000.00
<TABLE>
<CAPTION>
Redeemable Value
-------------------------------------------------------------------------------------
JGROKC95 JGROKC95
Nom. 7.50 M.F. (0.015%) Nom. 5.00 M.F. (0.010%)
# of Years --------------------------- ---------------------------
Ending 12-94 DSC Value IRR MF IRR Value IRR MF IRR
- ------------ ---- --------- ------ ------ --------- ------ ------
<S> <C> <C> <C> <C> <C> <C> <C>
1 5.0% 967.01 -3.30% -3.31% 967.01 -3.30% -3.31%
From 09-13-93 5.0% 998.02 -0.15% -0.17% 998.02 -0.15% -0.16%
From 09-13-93 5.0% 998.02 -0.15% -0.17% 998.02 -0.15% -0.16%
From 09-13-93 5.0% 998.02 -0.15% -0.17% 998.02 -0.15% -0.16%
</TABLE>
Accumulation Unit Values
------------------------------------------------------------
JGROKC95
JGROKC95.UV
09-13-93 8.079926 i
12-99-93 8.338970
12-99-94 8.488342 i
(Unit values marked "i" are used for from-inception calculations.)
(Day = 99 means end-of-month.)
<PAGE>
Janus Aspen Flexible Income (ACES ACCT C) KANSAS95.CUV
- ------------------------------------------------------------------------------
Gross Deposit: 1000.00
Net Deposit: 1000.00
<TABLE>
<CAPTION>
Redeemable Value
-------------------------------------------------------------------------------------
JFIKC95 JFIKC95 JFIKC95
Nom. 30.00 M.F. (0.058%) Nom. 25.00 M.F. (0.049%) Nom. 20.00 M.F. (0.039%)
# of Years --------------------------- --------------------------- ---------------------------
Ending 12-94 DSC Value IRR MF IRR Value IRR MF IRR Value IRR MF IRR
- ------------ ---- --------- ------ ------ --------- ------ ------ --------- ------ ------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1 5.0% 932.69 -6.73% -6.79% 932.69 -6.73% -6.78% 932.69 -6.73% -6.77%
From 09-13-93 5.0% 936.61 -4.92% -4.98% 936.61 -4.92% -4.97% 936.61 -4.92% -4.96%
From 09-13-93 5.0% 936.61 -4.92% -4.98% 936.61 -4.92% -4.97% 936.61 -4.92% -4.96%
From 09-13-93 5.0% 936.61 -4.92% -4.98% 936.61 -4.92% -4.97% 936.61 -4.92% -4.96%
</TABLE>
- ------------------------------------------------------------------------------
Gross Deposit: 1000.00
Net Deposit: 1000.00
<TABLE>
<CAPTION>
Redeemable Value
-------------------------------------------------------------------------------------
JFIKC95 JFIKC95 JFIKC95
Nom. 15.00 M.F. (0.029%) Nom. 12.50 M.F. (0.024%) Nom. 10.00 M.F. (0.019%)
# of Years --------------------------- --------------------------- ---------------------------
Ending 12-94 DSC Value IRR MF IRR Value IRR MF IRR Value IRR MF IRR
- ------------ ---- --------- ------ ------ --------- ------ ------ --------- ------ ------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1 5.0% 932.69 -6.73% -6.76% 932.69 -6.73% -6.76% 932.69 -6.73% -6.75%
From 09-13-93 5.0% 936.61 -4.92% -4.95% 936.61 -4.92% -4.94% 936.61 -4.92% -4.94%
From 09-13-93 5.0% 936.61 -4.92% -4.95% 936.61 -4.92% -4.94% 936.61 -4.92% -4.94%
From 09-13-93 5.0% 936.61 -4.92% -4.95% 936.61 -4.92% -4.94% 936.61 -4.92% -4.94%
</TABLE>
- ------------------------------------------------------------------------------
Gross Deposit: 1000.00
Net Deposit: 1000.00
<TABLE>
<CAPTION>
Redeemable Value
-------------------------------------------------------------------------------------
JFIKC95 JFIKC95
Nom. 7.50 M.F. (0.015%) Nom. 5.00 M.F. (0.010%)
# of Years --------------------------- ---------------------------
Ending 12-94 DSC Value IRR MF IRR Value IRR MF IRR
- ------------ ---- --------- ------ ------ --------- ------ ------
<S> <C> <C> <C> <C> <C> <C> <C>
1 5.0% 932.69 -6.73% -6.75% 932.69 -6.73% -6.74%
From 09-13-93 5.0% 936.61 -4.92% -4.93% 936.61 -4.92% -4.93%
From 09-13-93 5.0% 936.61 -4.92% -4.93% 936.61 -4.92% -4.93%
From 09-13-93 5.0% 936.61 -4.92% -4.93% 936.61 -4.92% -4.93%
</TABLE>
Accumulation Unit Values
------------------------------------------------------------
JFIKC95
JFIKC95.UV
09-13-93 10.052908 i
12-99-93 10.095160
12-99-94 9.911261 i
(Unit values marked "i" are used for from-inception calculations.)
(Day = 99 means end-of-month.)
<PAGE>
Janus Aspen Short-Term Bond (ACES ACCT C) KANSAS95.CUV
- ------------------------------------------------------------------------------
Gross Deposit: 1000.00
Net Deposit: 1000.00
<TABLE>
<CAPTION>
Redeemable Value
-------------------------------------------------------------------------------------
JSTBKC95 JSTBKC95 JSTBKC95
Nom. 30.00 M.F. (0.058%) Nom. 25.00 M.F. (0.049%) Nom. 20.00 M.F. (0.039%)
# of Years --------------------------- --------------------------- ---------------------------
Ending 12-94 DSC Value IRR MF IRR Value IRR MF IRR Value IRR MF IRR
- ------------ ---- --------- ------ ------ --------- ------ ------ --------- ------ ------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1 5.0% 949.73 -5.03% -5.09% 949.73 -5.03% -5.08% 949.73 -5.03% -5.07%
From 09-13-93 5.0% 949.89 -3.88% -3.94% 949.89 -3.88% -3.93% 949.89 -3.88% -3.92%
From 09-13-93 5.0% 949.89 -3.88% -3.94% 949.89 -3.88% -3.93% 949.89 -3.88% -3.92%
From 09-13-93 5.0% 949.89 -3.88% -3.94% 949.89 -3.88% -3.93% 949.89 -3.88% -3.92%
</TABLE>
- ------------------------------------------------------------------------------
Gross Deposit: 1000.00
Net Deposit: 1000.00
<TABLE>
<CAPTION>
Redeemable Value
-------------------------------------------------------------------------------------
JSTBKC95 JSTBKC95 JSTBKC95
Nom. 15.00 M.F. (0.029%) Nom. 12.50 M.F. (0.024%) Nom. 10.00 M.F. (0.019%)
# of Years --------------------------- --------------------------- ---------------------------
Ending 12-94 DSC Value IRR MF IRR Value IRR MF IRR Value IRR MF IRR
- ------------ ---- --------- ------ ------ --------- ------ ------ --------- ------ ------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1 5.0% 949.73 -5.03% -5.06% 949.73 -5.03% -5.05% 949.73 -5.03% -5.05%
From 09-13-93 5.0% 949.89 -3.88% -3.91% 949.89 -3.88% -3.91% 949.89 -3.88% -3.90%
From 09-13-93 5.0% 949.89 -3.88% -3.91% 949.89 -3.88% -3.91% 949.89 -3.88% -3.90%
From 09-13-93 5.0% 949.89 -3.88% -3.91% 949.89 -3.88% -3.91% 949.89 -3.88% -3.90%
</TABLE>
- ------------------------------------------------------------------------------
Gross Deposit: 1000.00
Net Deposit: 1000.00
<TABLE>
<CAPTION>
Redeemable Value
-------------------------------------------------------------------------------------
JSTBKC95 JSTBKC95
Nom. 7.50 M.F. (0.015%) Nom. 5.00 M.F. (0.010%)
# of Years --------------------------- ---------------------------
Ending 12-94 DSC Value IRR MF IRR Value IRR MF IRR
- ------------ ---- --------- ------ ------ --------- ------ ------
<S> <C> <C> <C> <C> <C> <C> <C>
1 5.0% 949.73 -5.03% -5.04% 949.73 -5.03% -5.04%
From 09-13-93 5.0% 949.89 -3.88% -3.90% 949.89 -3.88% -3.89%
From 09-13-93 5.0% 949.89 -3.88% -3.90% 949.89 -3.88% -3.89%
From 09-13-93 5.0% 949.89 -3.88% -3.90% 949.89 -3.88% -3.89%
</TABLE>
Accumulation Unit Values
------------------------------------------------------------
JSTBKC95
JSTBKC95.UV
09-13-93 9.581002 i
12-99-93 9.582522
12-99-94 9.579845 i
(Unit values marked "i" are used for from-inception calculations.)
(Day = 99 means end-of-month.)
<PAGE>
Janus Aspen Worldwide (ACES ACCT C) KANSAS95.CUV
- ------------------------------------------------------------------------------
Gross Deposit: 1000.00
Net Deposit: 1000.00
<TABLE>
<CAPTION>
Redeemable Value
-------------------------------------------------------------------------------------
JWWKC95 JWWKC95 JWWKC95
Nom. 30.00 M.F. (0.058%) Nom. 25.00 M.F. (0.049%) Nom. 20.00 M.F. (0.039%)
# of Years --------------------------- --------------------------- ---------------------------
Ending 12-94 DSC Value IRR MF IRR Value IRR MF IRR Value IRR MF IRR
- ------------ ---- --------- ------ ------ --------- ------ ------ --------- ------ ------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1 5.0% 955.47 -4.45% -4.51% 955.47 -4.45% -4.50% 955.47 -4.45% -4.49%
From 09-13-93 5.0% 1134.76 10.22% 10.17% 1134.76 10.22% 10.18% 1134.76 10.22% 10.19%
From 09-13-93 5.0% 1134.76 10.22% 10.17% 1134.76 10.22% 10.18% 1134.76 10.22% 10.19%
From 09-13-93 5.0% 1134.76 10.22% 10.17% 1134.76 10.22% 10.18% 1134.76 10.22% 10.19%
</TABLE>
- ------------------------------------------------------------------------------
Gross Deposit: 1000.00
Net Deposit: 1000.00
<TABLE>
<CAPTION>
Redeemable Value
-------------------------------------------------------------------------------------
JWWKC95 JWWKC95 JWWKC95
Nom. 15.00 M.F. (0.029%) Nom. 12.50 M.F. (0.024%) Nom. 10.00 M.F. (0.019%)
# of Years --------------------------- --------------------------- ---------------------------
Ending 12-94 DSC Value IRR MF IRR Value IRR MF IRR Value IRR MF IRR
- ------------ ---- --------- ------ ------ --------- ------ ------ --------- ------ ------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1 5.0% 955.47 -4.45% -4.48% 955.47 -4.45% -4.48% 955.47 -4.45% -4.47%
From 09-13-93 5.0% 1134.76 10.22% 10.20% 1134.76 10.22% 10.20% 1134.76 10.22% 10.21%
From 09-13-93 5.0% 1134.76 10.22% 10.20% 1134.76 10.22% 10.20% 1134.76 10.22% 10.21%
From 09-13-93 5.0% 1134.76 10.22% 10.20% 1134.76 10.22% 10.20% 1134.76 10.22% 10.21%
</TABLE>
- ------------------------------------------------------------------------------
Gross Deposit: 1000.00
Net Deposit: 1000.00
<TABLE>
<CAPTION>
Redeemable Value
-------------------------------------------------------------------------------------
JWWKC95 JWWKC95
Nom. 7.50 M.F. (0.015%) Nom. 5.00 M.F. (0.010%)
# of Years --------------------------- ---------------------------
Ending 12-94 DSC Value IRR MF IRR Value IRR MF IRR
- ------------ ---- --------- ------ ------ --------- ------ ------
<S> <C> <C> <C> <C> <C> <C> <C>
1 5.0% 955.47 -4.45% -4.47% 955.47 -4.45% -4.46%
From 09-13-93 5.0% 1134.76 10.22% 10.21% 1134.76 10.22% 10.21%
From 09-13-93 5.0% 1134.76 10.22% 10.21% 1134.76 10.22% 10.21%
From 09-13-93 5.0% 1134.76 10.22% 10.21% 1134.76 10.22% 10.21%
</TABLE>
Accumulation Unit Values
------------------------------------------------------------
JWWKC95
JWWKC95.UV
09-13-93 7.272941 i
12-99-93 8.637571
12-99-94 8.687363 i
(Unit values marked "i" are used for from-inception calculations.)
(Day = 99 means end-of-month.)
<PAGE>
Lexington Natural Resources (ACES ACCT C) KANSAS95.CUV
- ------------------------------------------------------------------------------
Gross Deposit: 1000.00
Net Deposit: 1000.00
<TABLE>
<CAPTION>
Redeemable Value
-------------------------------------------------------------------------------------
LXNRKC95 LXNRKC95 LXNRKC95
Nom. 30.00 M.F. (0.058%) Nom. 25.00 M.F. (0.049%) Nom. 20.00 M.F. (0.039%)
# of Years --------------------------- --------------------------- ---------------------------
Ending 12-94 DSC Value IRR MF IRR Value IRR MF IRR Value IRR MF IRR
- ------------ ---- --------- ------ ------ --------- ------ ------ --------- ------ ------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1 5.0% 889.54 -11.05% -11.10% 889.54 -11.05% -11.10% 889.54 -11.05% -11.09%
3 5.0% 1639.22 17.91% 17.85% 1639.22 17.91% 17.86% 1639.22 17.91% 17.87%
5 5.0% 1299.83 5.38% 5.33% 1299.83 5.38% 5.34% 1299.83 5.38% 5.35%
From 05-99-89 5.0% 1489.78 7.40% 7.34% 1489.78 7.40% 7.35% 1489.78 7.40% 7.36%
</TABLE>
- ------------------------------------------------------------------------------
Gross Deposit: 1000.00
Net Deposit: 1000.00
<TABLE>
<CAPTION>
Redeemable Value
-------------------------------------------------------------------------------------
LXNRKC95 LXNRKC95 LXNRKC95
Nom. 15.00 M.F. (0.029%) Nom. 12.50 M.F. (0.024%) Nom. 10.00 M.F. (0.019%)
# of Years --------------------------- --------------------------- ---------------------------
Ending 12-94 DSC Value IRR MF IRR Value IRR MF IRR Value IRR MF IRR
- ------------ ---- --------- ------ ------ --------- ------ ------ --------- ------ ------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1 5.0% 889.54 -11.05% -11.08% 889.54 -11.05% -11.07% 889.54 -11.05% -11.07%
3 5.0% 1639.22 17.91% 17.88% 1639.22 17.91% 17.88% 1639.22 17.91% 17.89%
5 5.0% 1299.83 5.38% 5.36% 1299.83 5.38% 5.36% 1299.83 5.38% 5.37%
From 05-99-89 5.0% 1489.78 7.40% 7.37% 1489.78 7.40% 7.37% 1489.78 7.40% 7.38%
</TABLE>
- ------------------------------------------------------------------------------
Gross Deposit: 1000.00
Net Deposit: 1000.00
<TABLE>
<CAPTION>
Redeemable Value
-------------------------------------------------------------------------------------
LXNRKC95 LXNRKC95
Nom. 7.50 M.F. (0.015%) Nom. 5.00 M.F. (0.010%)
# of Years --------------------------- ---------------------------
Ending 12-94 DSC Value IRR MF IRR Value IRR MF IRR
- ------------ ---- --------- ------ ------ --------- ------ ------
<S> <C> <C> <C> <C> <C> <C> <C>
1 5.0% 889.54 -11.05% -11.06% 889.54 -11.05% -11.06%
3 5.0% 1639.22 17.91% 17.89% 1639.22 17.91% 17.90%
5 5.0% 1299.83 5.38% 5.37% 1299.83 5.38% 5.37%
From 05-99-89 5.0% 1489.78 7.40% 7.38% 1489.78 7.40% 7.39%
</TABLE>
Accumulation Unit Values
------------------------------------------------------------
LXNRKC95
LXNRKC95.UV
05-99-89 6.584555 i
12-99-89 7.546781
12-99-91 5.984292
12-99-93 11.027628
12-99-94 10.325825 i
(Unit values marked "i" are used for from-inception calculations.)
(Day = 99 means end-of-month.)
<PAGE>
Neuberger & Berman (ACES ACCT C) KANSAS95.CUV
- ------------------------------------------------------------------------------
Gross Deposit: 1000.00
Net Deposit: 1000.00
<TABLE>
<CAPTION>
Redeemable Value
-------------------------------------------------------------------------------------
NEBKC95 NEBKC95 NEBKC95
Nom. 30.00 M.F. (0.058%) Nom. 25.00 M.F. (0.049%) Nom. 20.00 M.F. (0.039%)
# of Years --------------------------- --------------------------- ---------------------------
Ending 12-94 DSC Value IRR MF IRR Value IRR MF IRR Value IRR MF IRR
- ------------ ---- --------- ------ ------ --------- ------ ------ --------- ------ ------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1 5.0% 894.38 -10.56% -10.62% 894.38 -10.56% -10.61% 894.38 -10.56% -10.60%
3 5.0% 1051.79 1.70% 1.64% 1051.79 1.70% 1.65% 1051.79 1.70% 1.66%
5 5.0% 1228.83 4.21% 4.15% 1228.83 4.21% 4.16% 1228.83 4.21% 4.17%
From 12-99-85 5.0% 2138.39 8.81% 8.75% 2138.39 8.81% 8.76% 2138.39 8.81% 8.77%
</TABLE>
- ------------------------------------------------------------------------------
Gross Deposit: 1000.00
Net Deposit: 1000.00
<TABLE>
<CAPTION>
Redeemable Value
-------------------------------------------------------------------------------------
NEBKC95 NEBKC95 NEBKC95
Nom. 15.00 M.F. (0.029%) Nom. 12.50 M.F. (0.024%) Nom. 10.00 M.F. (0.019%)
# of Years --------------------------- --------------------------- ---------------------------
Ending 12-94 DSC Value IRR MF IRR Value IRR MF IRR Value IRR MF IRR
- ------------ ---- --------- ------ ------ --------- ------ ------ --------- ------ ------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1 5.0% 894.38 -10.56% -10.59% 894.38 -10.56% -10.59% 894.38 -10.56% -10.58%
3 5.0% 1051.79 1.70% 1.67% 1051.79 1.70% 1.67% 1051.79 1.70% 1.68%
5 5.0% 1228.83 4.21% 4.18% 1228.83 4.21% 4.18% 1228.83 4.21% 4.19%
From 12-99-85 5.0% 2138.39 8.81% 8.78% 2138.39 8.81% 8.79% 2138.39 8.81% 8.79%
</TABLE>
- ------------------------------------------------------------------------------
Gross Deposit: 1000.00
Net Deposit: 1000.00
<TABLE>
<CAPTION>
Redeemable Value
-------------------------------------------------------------------------------------
NEBKC95 NEBKC95
Nom. 7.50 M.F. (0.015%) Nom. 5.00 M.F. (0.010%)
# of Years --------------------------- ---------------------------
Ending 12-94 DSC Value IRR MF IRR Value IRR MF IRR
- ------------ ---- --------- ------ ------ --------- ------ ------
<S> <C> <C> <C> <C> <C> <C> <C>
1 5.0% 894.38 -10.56% -10.58% 894.38 -10.56% -10.57%
3 5.0% 1051.79 1.70% 1.68% 1051.79 1.70% 1.69%
5 5.0% 1228.83 4.21% 4.19% 1228.83 4.21% 4.20%
From 12-99-85 5.0% 2138.39 8.81% 8.80% 2138.39 8.81% 8.80%
</TABLE>
Accumulation Unit Values
------------------------------------------------------------
NEBKC95
NEBKC95.UV
12-99-85 5.032596 i
12-99-89 8.757612
12-99-91 10.231776
12-99-93 12.032623
12-99-94 11.328075 i
(Unit values marked "i" are used for from-inception calculations.)
(Day = 99 means end-of-month.)
<PAGE>
Scudder International (ACES ACCT C) KANSAS95.CUV
- ------------------------------------------------------------------------------
Gross Deposit: 1000.00
Net Deposit: 1000.00
<TABLE>
<CAPTION>
Redeemable Value
-------------------------------------------------------------------------------------
SCDKC95 SCDKC95 SCDKC95
Nom. 30.00 M.F. (0.058%) Nom. 25.00 M.F. (0.049%) Nom. 20.00 M.F. (0.039%)
# of Years --------------------------- --------------------------- ---------------------------
Ending 12-94 DSC Value IRR MF IRR Value IRR MF IRR Value IRR MF IRR
- ------------ ---- --------- ------ ------ --------- ------ ------ --------- ------ ------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1 5.0% 933.03 -6.70% -6.76% 933.03 -6.70% -6.75% 933.03 -6.70% -6.74%
3 5.0% 1217.44 6.78% 6.72% 1217.44 6.78% 6.73% 1217.44 6.78% 6.74%
5 5.0% 1229.41 4.22% 4.16% 1229.41 4.22% 4.17% 1229.41 4.22% 4.18%
From 04-99-87 5.0% 1722.71 7.35% 7.29% 1722.71 7.35% 7.30% 1722.71 7.35% 7.31%
</TABLE>
- ------------------------------------------------------------------------------
Gross Deposit: 1000.00
Net Deposit: 1000.00
<TABLE>
<CAPTION>
Redeemable Value
-------------------------------------------------------------------------------------
SCDKC95 SCDKC95 SCDKC95
Nom. 15.00 M.F. (0.029%) Nom. 12.50 M.F. (0.024%) Nom. 10.00 M.F. (0.019%)
# of Years --------------------------- --------------------------- ---------------------------
Ending 12-94 DSC Value IRR MF IRR Value IRR MF IRR Value IRR MF IRR
- ------------ ---- --------- ------ ------ --------- ------ ------ --------- ------ ------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1 5.0% 933.03 -6.70% -6.73% 933.03 -6.70% -6.72% 933.03 -6.70% -6.72%
3 5.0% 1217.44 6.78% 6.75% 1217.44 6.78% 6.75% 1217.44 6.78% 6.76%
5 5.0% 1229.41 4.22% 4.19% 1229.41 4.22% 4.19% 1229.41 4.22% 4.20%
From 04-99-87 5.0% 1722.71 7.35% 7.32% 1722.71 7.35% 7.32% 1722.71 7.35% 7.33%
</TABLE>
- ------------------------------------------------------------------------------
Gross Deposit: 1000.00
Net Deposit: 1000.00
<TABLE>
<CAPTION>
Redeemable Value
-------------------------------------------------------------------------------------
SCDKC95 SCDKC95
Nom. 7.50 M.F. (0.015%) Nom. 5.00 M.F. (0.010%)
# of Years --------------------------- ---------------------------
Ending 12-94 DSC Value IRR MF IRR Value IRR MF IRR
- ------------ ---- --------- ------ ------ --------- ------ ------
<S> <C> <C> <C> <C> <C> <C> <C>
1 5.0% 933.03 -6.70% -6.71% 933.03 -6.70% -6.71%
3 5.0% 1217.44 6.78% 6.76% 1217.44 6.78% 6.77%
5 5.0% 1229.41 4.22% 4.20% 1229.41 4.22% 4.21%
From 04-99-87 5.0% 1722.71 7.35% 7.33% 1722.71 7.35% 7.34%
</TABLE>
Accumulation Unit Values
------------------------------------------------------------
SCDKC95
SCDKC95.UV
04-99-87 7.159307 i
12-99-89 10.031969
12-99-91 10.130572
12-99-93 13.218612
12-99-94 12.982555 i
(Unit values marked "i" are used for from-inception calculations.)
(Day = 99 means end-of-month.)
<PAGE>
Twentieth Century Growth (ACES ACCT C) KANSAS95.CUV
- ------------------------------------------------------------------------------
Gross Deposit: 1000.00
Net Deposit: 1000.00
<TABLE>
<CAPTION>
Redeemable Value
-------------------------------------------------------------------------------------
TCIKC95 TCIKC95 TCIKC95
Nom. 30.00 M.F. (0.058%) Nom. 25.00 M.F. (0.049%) Nom. 20.00 M.F. (0.039%)
# of Years --------------------------- --------------------------- ---------------------------
Ending 12-94 DSC Value IRR MF IRR Value IRR MF IRR Value IRR MF IRR
- ------------ ---- --------- ------ ------ --------- ------ ------ --------- ------ ------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1 5.0% 930.10 -6.99% -7.05% 930.10 -6.99% -7.04% 930.10 -6.99% -7.03%
3 5.0% 1031.31 1.03% 0.97% 1031.31 1.03% 0.98% 1031.31 1.03% 0.99%
5 5.0% 1417.77 7.23% 7.17% 1417.77 7.23% 7.18% 1417.77 7.23% 7.19%
From 11-20-87 5.0% 1873.21 9.23% 9.17% 1873.21 9.23% 9.18% 1873.21 9.23% 9.19%
</TABLE>
- ------------------------------------------------------------------------------
Gross Deposit: 1000.00
Net Deposit: 1000.00
<TABLE>
<CAPTION>
Redeemable Value
-------------------------------------------------------------------------------------
TCIKC95 TCIKC95 TCIKC95
Nom. 15.00 M.F. (0.029%) Nom. 12.50 M.F. (0.024%) Nom. 10.00 M.F. (0.019%)
# of Years --------------------------- --------------------------- ---------------------------
Ending 12-94 DSC Value IRR MF IRR Value IRR MF IRR Value IRR MF IRR
- ------------ ---- --------- ------ ------ --------- ------ ------ --------- ------ ------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1 5.0% 930.10 -6.99% -7.02% 930.10 -6.99% -7.01% 930.10 -6.99% -7.01%
3 5.0% 1031.31 1.03% 1.00% 1031.31 1.03% 1.01% 1031.31 1.03% 1.01%
5 5.0% 1417.77 7.23% 7.20% 1417.77 7.23% 7.21% 1417.77 7.23% 7.21%
From 11-20-87 5.0% 1873.21 9.23% 9.20% 1873.21 9.23% 9.20% 1873.21 9.23% 9.21%
</TABLE>
- ------------------------------------------------------------------------------
Gross Deposit: 1000.00
Net Deposit: 1000.00
<TABLE>
<CAPTION>
Redeemable Value
-------------------------------------------------------------------------------------
TCIKC95 TCIKC95
Nom. 7.50 M.F. (0.015%) Nom. 5.00 M.F. (0.010%)
# of Years --------------------------- ---------------------------
Ending 12-94 DSC Value IRR MF IRR Value IRR MF IRR
- ------------ ---- --------- ------ ------ --------- ------ ------
<S> <C> <C> <C> <C> <C> <C> <C>
1 5.0% 930.10 -6.99% -7.01% 930.10 -6.99% -7.00%
3 5.0% 1031.31 1.03% 1.02% 1031.31 1.03% 1.02%
5 5.0% 1417.77 7.23% 7.22% 1417.77 7.23% 7.22%
From 11-20-87 5.0% 1873.21 9.23% 9.21% 1873.21 9.23% 9.22%
</TABLE>
Accumulation Unit Values
------------------------------------------------------------
TCIKC95
TCIKC95.UV
11-20-87 6.103412 i
12-99-89 8.064031
12-99-91 11.085852
12-99-93 12.292225
12-99-94 12.034691 i
(Unit values marked "i" are used for from-inception calculations.)
(Day = 99 means end-of-month.)
<PAGE>
Exhibit 99-B.15.1
POWER OF ATTORNEY
I, Eugene M. Trovato, Senior Vice President, Controller (chief accounting
officer) of Aetna Life Insurance and Annuity Company, do hereby constitute and
appoint Susan E. Bryant, Steven J. Lauwers, and Julie E. Rockmore and each of
them individually, my true and lawful attorneys, with full power to them and
each of them to sign for me, and in my name and in the capacity indicated
below, any and all amendments to the Registration Statements listed below filed
with the Securities and Exchange Commission by Aetna Life Insurance and Annuity
Company under the Securities Act of 1933, as amended, and/or the Investment
Company Act of 1940, including but not limited to pre-effective amendments and
post-effective amendments to such filings:
Registration Statements filed under the Securities Act of 1933, as amended:
<TABLE>
<CAPTION>
<S> <C> <C>
2-52448 33-75966 33-76000
2-52449 33-75968 33-76002
33-2339 33-75970 33-76004
33-34370 33-75972 33-76018
33-34583 33-75974 33-76024
33-42555 33-75976 33-76026
33-60477 33-75978 33-79118
33-61897 33-75980 33-79122
33-62473 33-75982 33-81216
33-63657 33-75984 33-87642
33-75248 33-75986 33-87932
33-75954 33-75988 33-88720
33-75956 33-75990 33-88722
33-75958 33-75992 33-88724
33-75960 33-75994 33-91846
33-75962 33-75996
33-75964 33-75998
</TABLE>
Registration Statements filed under the Investment Company Act of 1940:
811-2512 811-2513 811-4536 811-5906
hereby ratifying and confirming on this 30th day of November, 1995 my signature
as it may be signed by my said attorneys to any such registration statements,
applications and any and all amendments thereto:
/s/ Eugene M. Trovato
- -----------------------------------
Eugene M. Trovato
Senior Vice President, Controller
(chief accounting officer)
<TABLE> <S> <C>
<PAGE>
<ARTICLE> 6
<S> <C>
<PERIOD-TYPE> 12-MOS
<FISCAL-YEAR-END> DEC-31-1994
<PERIOD-START> JAN-01-1994
<PERIOD-END> DEC-31-1994
<INVESTMENTS-AT-COST> 4,788,832,558
<INVESTMENTS-AT-VALUE> 4,862,311,791
<RECEIVABLES> 0
<ASSETS-OTHER> 0
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 4,862,311,791
<PAYABLE-FOR-SECURITIES> 0
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 0
<TOTAL-LIABILITIES> 0
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 0
<SHARES-COMMON-STOCK> 0
<SHARES-COMMON-PRIOR> 0
<ACCUMULATED-NII-CURRENT> 0
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 0
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 0
<NET-ASSETS> 4,862,311,791
<DIVIDEND-INCOME> 535,517,318
<INTEREST-INCOME> 0
<OTHER-INCOME> 0
<EXPENSES-NET> 59,320,898
<NET-INVESTMENT-INCOME> 476,196,420
<REALIZED-GAINS-CURRENT> 64,071,561
<APPREC-INCREASE-CURRENT> (645,884,014)
<NET-CHANGE-FROM-OPS> (105,616,033)
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 0
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 0
<NUMBER-OF-SHARES-REDEEMED> 0
<SHARES-REINVESTED> 0
<NET-CHANGE-IN-ASSETS> 248,207,873
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> 0
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 0
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 0
<AVERAGE-NET-ASSETS> 0
<PER-SHARE-NAV-BEGIN> 0
<PER-SHARE-NII> 0
<PER-SHARE-GAIN-APPREC> 0
<PER-SHARE-DIVIDEND> 0
<PER-SHARE-DISTRIBUTIONS> 0
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 0
<EXPENSE-RATIO> 0
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
