Supplement to Prospectus Dated May 1, 1997
Aetna Life Insurance and Annuity Company
Variable Annuity Account C
Individual Deferred Variable Annuity Contracts for
Individual Retirement Annuities (Section 408(b))
and Simplified Employee Pension Plans (Section 408(k))
The prospectus dated May 1, 1997 is amended as follows:
Cover:
The following Funds will be replaced with the designated Substitute Funds after
the close of business of the New York Stock Exchange on November 26, 1997:
<TABLE>
<CAPTION>
Replaced Fund Substitute Fund
<S> <C>
Scudder Variable Life Investment Fund-- Portfolio Partners Scudder International Growth Portfolio
International Portfolio Class A Shares
Alger American Small Capitalization Portfolio Portfolio Partners MFS Emerging Equities Portfolio
American Century VP Capital Appreciation Portfolio Partners MFS Research Growth Portfolio
(Formerly TCI Growth)
Alger American Growth Portfolio Portfolio Partners T. Rowe Price Growth Equity Portfolio
Janus Aspen Short-Term Bond Portfolio Aetna Variable Encore Fund (money market)
</TABLE>
The Date of this Supplement is August 21, 1997
Form No. X75988-97
<PAGE>
Fee Table - 3
The table under Annual Expenses of the Funds is amended by deleting the
Replaced Funds and adding the following Substitute Funds:
<TABLE>
<CAPTION>
Investment
Advisory Fees Other Expenses
(after expense (after expense Total Annual
reimbursement) reimbursement) Fund Expenses
<S> <C> <C> <C>
Portfolio Partners Scudder International Growth Portfolio .80% .20% 1.00%(1)
Portfolio Partners MFS Emerging Equities Portfolio .70%(2) .13% .83%(1)
Portfolio Partners MFS Research Growth Portfolio .70%(2) .15% .85%(1)
Portfolio Partners T. Rowe Price Growth Equity Portfolio .60% .15% .75%(1)
</TABLE>
1 The Company has agreed to reimburse the Fund for expenses and/or waive its
fees so that the aggregate expenses will not exceed this amount through
April 30, 1999. Without such reimbursements or waivers, Total Annual Fund
Expenses are estimated to be as follows: 1.00% for the Scudder International
Growth Portfolio; .87% for the MFS Emerging Equities Portfolio; .92% for the
MFS Research Growth Portfolio; and .79% for the T. Rowe Price Growth Equity
Portfolio.
2 The advisory fee is .70% of the first $500 million in assets and .65% on the
excess.
Fee Table - 4 and 5
The Hypothetical Illustrations (Example) in the Fee Table are amended by
deleting all information with respect to the Replaced Funds for periods after
November 26, 1997, and adding the following:
<TABLE>
<CAPTION>
EXAMPLE A EXAMPLE B
If you withdraw the entire Contract If you withdraw the entire Contract
Value at the end of the periods shown, Value at the end of the periods shown, you
you would pay the following expenses, would pay the following expenses,
including any applicable deferred sales including any applicable deferred sales
charge assessed under Schedule A shown charge assessed under Schedule B shown
on Fee Table - 1 of the Prospectus: on Fee Table - 2 of the Prospectus:
1 year 3 yrs 5 yrs 10 yrs 1 year 3 yrs 5 yrs 10 yrs
------- -------- ------- ------- ------- ------ -------- -------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Portfolio Partners Scudder $24 $74 $126 $269 $75 $128 $171 $269
International Growth Portfolio
Portfolio Partners MFS Emerging $22 $68 $117 $252 $74 $123 $163 $252
Equities Portfolio
Portfolio Partners MFS Research $22 $69 $118 $254 $74 $123 $164 $254
Growth Portfolio
Portfolio Partners T. Rowe Price $21 $66 $113 $244 $73 $120 $159 $244
Growth Equity Portfolio
</TABLE>
<TABLE>
<CAPTION>
EXAMPLE C
If you withdraw the entire Contract EXAMPLE D
Value at the end of the periods shown, If you withdraw the entire Contract
you would pay the following expenses, Value, or if you annuitize during the
including any applicable deferred sales periods shown, you would pay the
charge assessed under Schedule C shown following expenses (no deferred sales
on Fee Table - 2 of the Prospectus: charge is reflected):
1 year 3 yrs 5 yrs 10 yrs 1 year 3 yrs 5 yrs 10 yrs
------- -------- -------- ------- ------- ------ --------- -------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Portfolio Partners Scudder $85 $117 $149 $269 $24 $74 $126 $269
International Growth Portfolio
Portfolio Partners MFS Emerging $84 $112 $140 $252 $22 $68 $117 $252
Equities Portfolio
Portfolio Partners MFS Research $84 $112 $141 $254 $22 $69 $118 $254
Growth Portfolio
Portfolio Partners T. Rowe Price $83 $110 $136 $244 $21 $66 $113 $244
Growth Equity Portfolio
</TABLE>
<PAGE>
Prospectus, Page 1
In the Section Investment Options, the Substitute Funds will take the place of
the Replaced Funds after the close of business of the New York Stock Exchange
on November 26, 1997. Any amounts allocated to the Replaced Funds will
automatically be allocated to the Substitute Funds after that date. The
following will be added:
Portfolio Partners Scudder International Growth Portfolio seeks long-term
growth of capital primarily through a diversified portfolio of marketable
foreign equity securities.
Portfolio Partners MFS Emerging Equities Portfolio seeks long-term growth of
capital by investing primarily in common stocks issued by companies that its
subadviser believes are early in their life cycle but which have the potential
to become major enterprises (emerging growth companies).
Portfolio Partners MFS Research Growth Portfolio seeks long-term growth of
capital and future income by investing primarily in common stocks or securities
convertible into common stocks issued by companies that the subadviser believes
to possess better-than-average prospects for long-term growth, and, to a lesser
extent, in income-producing securities including bonds and preferred stock.
Portfolio Partners T. Rowe Price Growth Equity Portfolio seeks long-term growth
of capital and, secondarily, seeks to increase dividend income by investing
primarily in common stocks issued by a diversified group of well-established
growth companies.
Aetna Life Insurance and Annuity Company serves as the investment adviser to
each Portfolio. Scudder, Stevens & Clark, Inc. serves as the subadviser to the
Scudder International Growth Portfolio; Massachusetts Financial Services
Company serves as the subadviser to the MFS Emerging Equities and MFS Research
Growth Portfolios; and T. Rowe Price Associates, Inc. serves as the subadviser
to the T. Rowe Price Growth Equity Portfolio.
Prospectus, page 8
The Section in the prospectus entitled Transfers is amended by adding the
following to the Subsection on the Dollar Cost Averaging Program:
Amounts being transferred into a Replaced Fund will automatically be
transferred into the Substitute Fund after the close of business of the New
York Stock Exchange on November 26, 1997, unless you have been dollar cost
averaging between the Aetna Variable Encore Fund and the Janus Aspen Short-Term
Bond Portfolio (in either direction). In that event, your Dollar Cost Averaging
will automatically terminate after November 26, 1997. To continue with Dollar
Cost Averaging after that date, you must select Funds from the then-current
list of available Funds.
Form No. X75988-97
