As filed with the Securities and Exchange Registration No. 33-75964*
Commission on December 11, 1997 Registration No. 811-2513
- -------------------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-4
- -------------------------------------------------------------------------------
Post-Effective Amendment No. 15 To
REGISTRATION STATEMENT UNDER THE SECURITIES ACT OF 1933
and Amendment to
REGISTRATION STATEMENT UNDER THE INVESTMENT COMPANY ACT OF 1940
- -------------------------------------------------------------------------------
Variable Annuity Account C of Aetna Life Insurance and Annuity Company
Aetna Life Insurance and Annuity Company
151 Farmington Avenue, RE4A, Hartford, Connecticut 06156
Depositor's Telephone Number, including Area Code: (860) 273-4686
Julie E. Rockmore, Counsel
Aetna Life Insurance and Annuity Company
151 Farmington Avenue, RE4A, Hartford, Connecticut 06156
(Name and Address of Agent for Service)
- -------------------------------------------------------------------------------
It is proposed that this filing will become effective:
[X] 60 days after filing pursuant to paragraph (a)(1) of Rule 485
[ ] on pursuant to paragraph (a)(1) of Rule 485
*Pursuant to Rule 429(a) under the Securities Act of 1933, Registrant has
included a combined prospectus under this Registration Statement which includes
all the information which would currently be required in prospectuses relating
to the securities covered by the following earlier Registration Statements:
33-75958; 33-75960; and 33-75994.
<PAGE>
VARIABLE ANNUITY ACCOUNT C
CROSS REFERENCE SHEET
<TABLE>
<CAPTION>
LOCATION - PROSPECTUS DATED MAY 1, 1997,
FORM N-4 AND AS AMENDED BY SUPPLEMENTS DATED
ITEM NO. PART A (PROSPECTUS) AUGUST 21, 1997 AND FEBRUARY 9, 1998
<S> <C> <C>
1 Cover Page........................................... Cover Page, and as amended
2 Definitions.......................................... Definitions
3 Synopsis............................................. Prospectus Summary; Fee Table, and as amended
4 Condensed Financial Information...................... Condensed Financial Information, and as amended
General Description of Registrant, Depositor, and
5 Portfolio Companies.................................. The Company; Variable Annuity Account C;
The Funds, and as amended
6 Deductions and Expenses.............................. Charges and Deductions, and as amended; Distribution
7 General Description of Variable Annuity Contracts.... Purchase; Miscellaneous
8 Annuity Period....................................... Annuity Period
9 Death Benefit........................................ Death Benefit During Accumulation Period;
Death Benefit Payable During the Annuity Period
10 Purchases and Contract Value......................... Purchase; Contract Valuation
11 Redemptions.......................................... Right to Cancel; Withdrawals
12 Taxes................................................ Tax Status
13 Legal Proceedings.................................... Miscellaneous - Legal Matters and Proceedings
Table of Contents of the Statement of Additional
14 Information.......................................... Contents of the Statement of Additional Information
<PAGE>
FORM N-4
ITEM NO. PART B (STATEMENT OF ADDITIONAL INFORMATION) LOCATION - STATEMENT OF ADDITIONAL INFORMATION
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; Average Annual Total Return Quotations
22 Annuity Payments..................................... Annuity Payments
23 Financial Statements................................. Financial Statements
</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>
PARTS A AND B
The Prospectus is incorporated into Part A of this Post-Effective Amendment No.
15 by reference to Post-Effective Amendment No. 13 to the Registration Statement
on Form N-4 (File No. 33-75964), as filed electronically on April 11, 1997
(Accession No. 0000950146-97-000583) and by reference to a Supplement to the
Prospectus dated August 21, 1997 which was filed in Post-Effective Amendment No.
14 on July 29, 1997 (Accession No. 0000950146-97-001101) and by reference to a
Supplement to the Prospectus dated February 9, 1998 which is included in Part A
of this Post-Effective Amendment No. 15. The Statement of Additional Information
is included in Part B of this Post-Effective Amendment No. 15.
<PAGE>
Aetna Life Insurance and Annuity Company
Variable Annuity Account C
Variable Annuity Contracts for Tax-Deferred Annuity Plans
(Section 403(b)) and Defined Contribution Plans
(Section 401(a))
Supplement dated February 9, 1998 to Prospectus dated May 1, 1997 and as
supplemented on August 21, 1997
The information herein updates and amends the information contained in the
Prospectus dated May 1, 1997 and as amended by supplement dated August 21, 1997
(the 'Prospectus') and should be read with that Prospectus.
[bullet] Charges and Deductions - Page 6
The first paragraph under "Mortality and Expense Risk Charge" is replaced by the
following:
Mortality and Expense Risk Charge. The Company makes a daily deduction from each
of the Subaccounts for the mortality and expense risk charge. The charge is
equal, on an annual basis, to 1.25% of the daily net assets of the Subaccounts
and compensates the Company for the assumption of the mortality and expense
risks under the Contract. The mortality risks are those assumed for our promise
to make lifetime payments according to annuity rates specified in the Contract.
The expense risk is the risk that the actual expenses for costs incurred under
the Contract will exceed the maximum costs that can be charged under the
Contract. The mortality and expense risk charge may be reduced for a Contract
Holder under various conditions as agreed to by us and the Contract Holder in
writing. Whether such a reduction is available will be determined by the Company
based upon consideration of some or all of the following factors:
[bullet] The size of the prospective group.
[bullet] The number of eligible participants and the program's participation
rate.
[bullet] The projected annual Purchase Payments for the number of Participants
estimated to choose the Contract.
[bullet] The frequency of projected distributions.
[bullet] The type and level of administrative and sales services to be provided.
[bullet] The Contract Holder's support and involvement in the communication,
enrollment, and Participant education.
[bullet] The frequency, consistency and method of submitting Purchase Payments.
X.75964-97 February 1998
<PAGE>
[bullet] The retirement program design. For example, the program may favor the
stability of invested assets and limit the conditions for withdrawals,
loans and investment options which in turn will lower administrative
expenses.
[bullet] The type and level of other factors that affect the overall
administrative expense.
Prospective purchasers eligible for a reduction in the mortality and expense
risk charge will be notified of their eligibility and the amount of the charge
applicable to their Contract prior to the Company's acceptance of an application
for the Contract. We may also make reductions, after the Contract has been
issued, according to the Company's rules in effect at the time there is a
material change in any of the above factors. We will notify the Contract Holder
of any reduction prior to it occurring. Any reduction of the mortality and
expense risk charge will not be unfairly discriminatory against any person.
[bullet] Charges and Deductions - Maintenance Fee - Page 6
The last paragraph under "Reduction or Elimination of the Maintenance Fee",
which begins on page 6, is replaced with the following:
Any reduction or elimination of maintenance fees will not be unfairly
discriminatory against any person. We will make any reduction in annual
maintenance fees according to our own rules in effect at the time an application
for a Contract is approved. We may also make reductions, after the Contract has
been issued, according to the Company's rules in effect at the time there is a
material change in any of the above factors. We will notify the Contract Holder
of any reduction prior to it occurring. We reserve the right to change these
rules from time to time.
[bullet] Condensed Financial Information - Page AUV History - 1 through AUV
History 4
The following information supplements the Condensed Financial Information Table:
[485(b) filing will include AUV history as of September 30, 1997]
X.75964-97 February 1998
<PAGE>
- -------------------------------------------------------------------------------
VARIABLE ANNUITY ACCOUNT C
OF
AETNA LIFE INSURANCE AND ANNUITY COMPANY
- -------------------------------------------------------------------------------
Statement of Additional Information dated February 9, 1998
Group and Individual Variable Annuity Contracts Available under
Section 403(b) and 401(a) Plans
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 May 1, 1997 and as amended by supplements dated August
21, 1997 and February 9, 1998.
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
Customer Service
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.......................................... 1
Variable Annuity Account C............................................... 1
Offering and Purchase of Contracts....................................... 2
Performance Data......................................................... 2
General............................................................ 2
Average Annual Total Return Quotations............................. 3
Annuity Payments......................................................... 6
Sales Material and Advertising........................................... 7
Independent Auditors..................................................... 7
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 under the insurance laws of the State of
Connecticut in 1976. Through a merger, it succeeded to the business of Aetna
Variable Annuity Life Insurance Company (formerly Participating Annuity Life
Insurance Company organized in 1954). As of December 31, 1996, the Company had
$30.1 billion invested through its products, including $15.0 billion in its
separate accounts (of which the Company oversees the management of $10.5
billion) and $1.1 billion in its mutual funds offered outside of its separate
accounts. As of December 31, 1995, it ranked among the top 2% of all U.S. life
insurance companies based on assets. The Company is a wholly owned subsidiary of
Aetna Retirement Holdings, Inc., which is in turn a wholly owned subsidiary of
Aetna Retirement Services, Inc., and an indirect wholly owned subsidiary of
Aetna Inc. The Company is engaged in the business of issuing life insurance
policies and annuity contracts in all states of the United States. 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 (see
"Variable Annuity Account C" below).
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 up 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.
VARIABLE ANNUITY ACCOUNT C
Variable Annuity Account C (the "Separate Account") is a separate account
established by the Company for the purpose of funding variable annuity contracts
issued by the Company. The Separate Account is registered with the Securities
and Exchange Commission as a unit investment trust under the Investment Company
Act of 1940, as amended. Purchase Payments made under the Contract may be
allocated to one or more of the Subaccounts. Each Subaccount invests in the
shares of only one of the Funds listed below. The Company may make additions to,
deletions from or substitution of available investment options as permitted by
law and subject to the conditions of the Contract. The availability of the Funds
is subject to applicable regulatory authorization. Not all Funds are available
in all jurisdictions, under all Contracts, or under all Plans.
1
<PAGE>
The Funds currently available under the Contract are as follows:
<TABLE>
<S> <C>
Aetna Variable Fund Fidelity VIP Equity-Income Portfolio
Aetna Income Shares Fidelity VIP Growth Portfolio
Aetna Variable Encore Fund Fidelity VIP Overseas Portfolio
Aetna Investment Advisers Fund, Inc. Janus Aspen Aggressive Growth Portfolio
Aetna Ascent Variable Portfolio Janus Aspen Balanced Portfolio
Aetna Crossroads Variable Portfolio Janus Aspen Flexible Income Portfolio
Aetna Legacy Variable Portfolio Janus Aspen Growth Portfolio
Aetna Variable Capital Appreciation Portfolio Janus Aspen Worldwide Growth Portfolio
Aetna Variable Growth Portfolio Portfolio Partners, Inc. MFS Emerging Equities Portfolio
Aetna Variable Index Plus Portfolio Portfolio Partners, Inc. MFS Research Growth Portfolio
Aetna Variable Small Company Portfolio Portfolio Partners, Inc. MFS Value Equity Portfolio
Calvert Responsibly Invested Balanced Portfolio Portfolio Partners, Inc. Scudder International Growth Portfolio
Fidelity VIP II Contrafund Portfolio Portfolio Partners, Inc. T. Rowe Price Growth Equity Portfolio
</TABLE>
Complete descriptions of each of the Funds, including their investment
objectives, policies, risks and fees and expenses, are contained in the
prospectuses and statements of additional information for each of the Funds.
OFFERING AND PURCHASE OF CONTRACTS
The Company is both the depositor and the principal underwriter for the
securities sold by the prospectus. 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 "Purchase" and "Contract Valuation."
PERFORMANCE DATA
GENERAL
From time to time, the Company may advertise different types of historical
performance for the Subaccounts 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 "non-standardized returns,"
both of which are described below.
2
<PAGE>
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 various Subaccounts under the Contract, and then
related to the ending redeemable values over one, five and ten year periods (or
fractional periods thereof). The redeemable value is then divided by the initial
investment and this quotient is taken to the Nth root (N represents the number
of years in the period) and 1 is subtracted from the result which is then
expressed as a percentage, carried to at least the nearest hundredth of a
percent. The standardized figures use the actual returns of the Fund since the
date the Fund was first available under the Separate Account and then adjust
them to reflect the deduction of all recurring charges that may be applicable
under the Contracts during each period (e.g., mortality and expense risk
charges, maintenance fees, administrative expense charges and deferred sales
charges). These charges will be deducted on a pro rata basis in the case of
fractional periods. The maintenance fee is converted to a percentage of assets
based on the average account size under the Contracts described in the
prospectus. The total return figures shown below may be different from the
actual historical total return under your Contract because for periods prior to
1994, the Subaccount's investment performance reflected the investment
performance of the underlying Fund plus any cash held by the Subaccount.
The non-standardized figures will be calculated in a similar manner, except that
they 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 monthly, quarterly,
year-to-date and three year periods, and may include returns calculated from the
Fund's inception date and/or the date the Fund was added to the Separate
Account.
Investment results of the Subaccounts will fluctuate over time, and any
presentation of the Subaccounts' total return quotations for any prior period
should not be considered as a representation of how the Subaccounts 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
Table A shown below reflects the average annual standardized and
non-standardized total return quotation figures for the periods ended September
30, 1997 for the Subaccounts available as of September 30, 1997 under Single
Payment Accounts issued by the Company (not all such Funds are currently
available). No maintenance fee applies to these types of Accounts. Table B
reflects the average annual standardized and non-standardized total return
quotation figures for the periods ended September 30, 1997 for the Subaccounts
available as of September 30, 1997 under Installment Payment Accounts with a $20
annual maintenance fee (not all such Funds are currently available). The Company
may also advertise total return quotations for Installment Payment Accounts with
a $15 and a $7.50 annual maintenance fee. Both sets of returns shown below
reflect the 0.25% administrative expense charge applicable under some Contracts.
The Company may also advertise total return quotations where the administrative
expense charge is not reflected. In both sets of tables shown below, for those
Subaccounts where results are not available for the full calendar period
indicated, the percentage shown is an average annual return since the date the
Fund was added to the Separate Account (in the case of standardized performance)
or since inception of the Fund (in the case of nonstandardized performance).
Percentage returns for less than a full period are denoted with an *.
3
<PAGE>
<TABLE>
<CAPTION>
TABLE A
------------------------------------------------------------------------------------------
DATE FUND
ADDED TO FUND
SINGLE PAYMENT ACCOUNT: SEPARATE INCEPTION
($0 MAINTENANCE FEE) STANDARDIZED ACCOUNT NON-STANDARDIZED DATE
<S> <C> <C> <C> <C> <C> <C> <C>
- -----------------------------------------------------------------------------------------------------------------------------------
SUBACCOUNT 1 Year 5 Years 10 Years 1 Year 3 Years 5 Years 10 Years
- -----------------------------------------------------------------------------------------------------------------------------------
Aetna Variable Fund 05/01/75
- -----------------------------------------------------------------------------------------------------------------------------------
Aetna Income Shares 05/15/73
- -----------------------------------------------------------------------------------------------------------------------------------
Aetna Variable Encore Fund 08/01/75
- -----------------------------------------------------------------------------------------------------------------------------------
Aetna Investment Advisers Fund, Inc. 04/03/89
- -----------------------------------------------------------------------------------------------------------------------------------
Aetna Ascent Variable Portfolio 07/05/95
- -----------------------------------------------------------------------------------------------------------------------------------
Aetna Crossroads Variable Portfolio 07/05/95
- -----------------------------------------------------------------------------------------------------------------------------------
Aetna Legacy Variable Portfolio 07/05/95
- -----------------------------------------------------------------------------------------------------------------------------------
Aetna Variable Index Plus Portfolio 09/16/96
- -----------------------------------------------------------------------------------------------------------------------------------
Alger American Growth Portfolio 01/09/89
- -----------------------------------------------------------------------------------------------------------------------------------
Alger American Small Cap Portfolio 09/21/88
- -----------------------------------------------------------------------------------------------------------------------------------
American Century VP Capital Appreciation 11/20/87
- -----------------------------------------------------------------------------------------------------------------------------------
Calvert Responsibly Invested Balanced Portfolio 09/02/86
- -----------------------------------------------------------------------------------------------------------------------------------
Fidelity VIP II Contrafund Portfolio 01/03/95
- -----------------------------------------------------------------------------------------------------------------------------------
Fidelity VIP Equity-Income Portfolio 10/09/86
- -----------------------------------------------------------------------------------------------------------------------------------
Fidelity VIP Growth Portfolio 10/09/86
- -----------------------------------------------------------------------------------------------------------------------------------
Fidelity VIP Overseas Portfolio 02/13/87
- -----------------------------------------------------------------------------------------------------------------------------------
Franklin Government Securities Trust 02/17/89
- -----------------------------------------------------------------------------------------------------------------------------------
Janus Aspen Aggressive Growth Portfolio 9/13/93
- -----------------------------------------------------------------------------------------------------------------------------------
Janus Aspen Balanced Portfolio 09/13/93
- -----------------------------------------------------------------------------------------------------------------------------------
Janus Aspen Flexible Income Portfolio 09/13/93
- -----------------------------------------------------------------------------------------------------------------------------------
Janus Aspen Growth Portfolio 09/13/93
- -----------------------------------------------------------------------------------------------------------------------------------
Janus Aspen Short-Term Bond Portfolio 09/13/93
- -----------------------------------------------------------------------------------------------------------------------------------
Janus Aspen Worldwide Growth Portfolio 09/13/93
- -----------------------------------------------------------------------------------------------------------------------------------
Portfolio Partners, Inc.
MFS Emerging Equities Portfolio 08/19/97
- -----------------------------------------------------------------------------------------------------------------------------------
Portfolio Partners, Inc.
MFS Research Growth Portfolio 08/19/97
- -----------------------------------------------------------------------------------------------------------------------------------
4
<PAGE>
- -----------------------------------------------------------------------------------------------------------------------------------
Portfolio Partners, Inc. MFS Value Equity Portfolio 08/19/97
- -----------------------------------------------------------------------------------------------------------------------------------
Portfolio Partners, Inc. Scudder International Growth Portfolio 08/19/97
- -----------------------------------------------------------------------------------------------------------------------------------
Portfolio Partners, Inc. T. Rowe Price Growth Equity Portfolio 08/19/97
- -----------------------------------------------------------------------------------------------------------------------------------
</TABLE>
Please refer to the discussion preceding the Tables for an explanation of the
charges included in the Standardized and Non-Standardized figures. These figures
represent historical performance and should not be considered a projection of
future performance.
5
<PAGE>
<TABLE>
<CAPTION>
TABLE B
------------------------------------------------------------------------------------------
DATE FUND
ADDED TO FUND
INSTALLMENT PAYMENT ACCOUNT: SEPARATE INCEPTION
($20 MAINTENANCE FEE) STANDARDIZED ACCOUNT NON-STANDARDIZED DATE
<S> <C> <C> <C> <C> <C> <C> <C>
- -----------------------------------------------------------------------------------------------------------------------------------
SUBACCOUNT 1 Year 5 Years 10 Years 1 Year 3 Years 5 Years 10 Years
- -----------------------------------------------------------------------------------------------------------------------------------
Aetna Variable Fund 05/01/75
- -----------------------------------------------------------------------------------------------------------------------------------
Aetna Income Shares 05/15/73
- -----------------------------------------------------------------------------------------------------------------------------------
Aetna Variable Encore Fund 08/01/75
- -----------------------------------------------------------------------------------------------------------------------------------
Aetna Investment Advisers Fund, Inc. 04/03/89
- -----------------------------------------------------------------------------------------------------------------------------------
Aetna Ascent Variable Portfolio 07/05/95
- -----------------------------------------------------------------------------------------------------------------------------------
Aetna Crossroads Variable Portfolio 07/05/95
- -----------------------------------------------------------------------------------------------------------------------------------
Aetna Legacy Variable Portfolio 07/05/95
- -----------------------------------------------------------------------------------------------------------------------------------
Aetna Variable Index Plus Portfolio 09/16/96
- -----------------------------------------------------------------------------------------------------------------------------------
Alger American Growth Portfolio 01/09/89
- -----------------------------------------------------------------------------------------------------------------------------------
Alger American Small Cap Portfolio 09/21/88
- -----------------------------------------------------------------------------------------------------------------------------------
American Century VP Capital
Appreciation 11/20/87
- -----------------------------------------------------------------------------------------------------------------------------------
Calvert Responsibly Invested Balanced
Portfolio 09/02/86
- -----------------------------------------------------------------------------------------------------------------------------------
Fidelity VIP II Contrafund Portfolio 01/03/95
- -----------------------------------------------------------------------------------------------------------------------------------
Fidelity VIP Equity-Income Portfolio 10/09/86
- -----------------------------------------------------------------------------------------------------------------------------------
Fidelity VIP Growth Portfolio 10/09/86
- -----------------------------------------------------------------------------------------------------------------------------------
Fidelity VIP Overseas Portfolio 02/13/87
- -----------------------------------------------------------------------------------------------------------------------------------
Franklin Government Securities Trust 02/17/89
- -----------------------------------------------------------------------------------------------------------------------------------
Janus Aspen Aggressive Growth
Portfolio 9/13/93
- -----------------------------------------------------------------------------------------------------------------------------------
Janus Aspen Balanced Portfolio 09/13/93
- -----------------------------------------------------------------------------------------------------------------------------------
Janus Aspen Flexible Income Portfolio 09/13/93
- -----------------------------------------------------------------------------------------------------------------------------------
Janus Aspen Growth Portfolio 09/13/93
- -----------------------------------------------------------------------------------------------------------------------------------
Janus Aspen Short-Term Bond Portfolio 09/13/93
- -----------------------------------------------------------------------------------------------------------------------------------
Janus Aspen Worldwide Growth Portfolio 09/13/93
- -----------------------------------------------------------------------------------------------------------------------------------
Portfolio Partners, Inc.
MFS Emerging Equities Portfolio 08/19/97
- -----------------------------------------------------------------------------------------------------------------------------------
Portfolio Partners, Inc.
MFS Research Growth Portfolio 08/19/97
- -----------------------------------------------------------------------------------------------------------------------------------
6
<PAGE>
- -----------------------------------------------------------------------------------------------------------------------------------
Portfolio Partners, Inc.
MFS Value Equity Portfolio 08/19/97
- -----------------------------------------------------------------------------------------------------------------------------------
Portfolio Partners, Inc.
Scudder International Growth Portfolio 08/19/97
- -----------------------------------------------------------------------------------------------------------------------------------
Portfolio Partners, Inc. T. Rowe
Price Growth Equity Portfolio 08/19/97
- -----------------------------------------------------------------------------------------------------------------------------------
</TABLE>
Please refer to the discussion preceding the Tables for an explanation of the
charges included in the Standardized and Non-Standardized figures. These figures
represent historical performance and should not be considered a projection of
future performance.
7
<PAGE>
ANNUITY PAYMENTS
When Annuity payments are to begin, the value of the Account is determined using
Accumulation Unit values as of the tenth Valuation Date 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 Date to the
next; such fluctuations reflect changes in the net investment factor for the
appropriate Subaccount(s) (with a ten Valuation Date 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.
EXAMPLE:
Assume that, at the date Annuity payments are to begin, there are 3,000
Accumulation Units credited under a particular Account and that the value of an
Accumulation Unit for the tenth Valuation Date 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 Date on 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 Subaccount is
1.0015000 as of the tenth Valuation Date 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
8
<PAGE>
Unit value for the prior Valuation Date (assume such value to be $13.504376) to
produce an Annuity Unit value of $13.523359 for the Valuation Date on which the
second payment is due.
9
<PAGE>
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.
SALES MATERIAL AND ADVERTISING
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.
We may distribute sales literature that compares the percentage change in
Accumulation Unit values for any of the Subaccounts to established market
indices such as the Standard & Poor's 500 Stock Index and the Dow Jones
Industrial Average or to the percentage change in values of other management
investment companies that have investment objectives similar to the Subaccount
being compared.
We may publish in advertisements and reports, the ratings and other information
assigned to us by one or more independent rating organizations such as A.M. Best
Company, Duff & Phelps, Standard & Poor's Corporation and Moody's Investors
Services, Inc. The purpose of the ratings is to reflect our financial strength
and/or claims-paying ability. We may also quote ranking services such as
Morningstar's Variable Annuity/Life Performance Report and Lipper's Variable
Insurance Products Performance Analysis Service (VIPPAS), which rank variable
annuity or life Subaccounts or their underlying funds by performance and/or
investment objective. We may illustrate in advertisements the performance of the
underlying funds, if accompanied by performance which also shows the performance
of such funds reduced by applicable charges under the Separate Account. We may
also show in advertisements the portfolio holdings of the underlying funds,
updated at various intervals. From time to time, we will quote articles from
newspapers and magazines or other publications or reports, including, but not
limited to The Wall Street Journal, Money magazine, USA Today and The VARDS
Report.
The Company may provide in advertising, sales literature, periodic publications
or other materials information on various topics of interest to current and
prospective Contract Holders or Participants. These topics may include the
relationship between sectors of the economy and the economy as a whole and its
effect on various securities markets, investment strategies and techniques (such
as value investing, market timing, dollar cost averaging, asset allocation,
constant ratio transfer and account rebalancing), the advantages and
disadvantages of investing in tax-deferred and taxable investments, customer
profiles and hypothetical purchase and investment scenarios, financial
management and tax and retirement planning, and investment alternatives to
certificates of deposit and other financial instruments, including comparison
between the Contracts and the characteristics of and market for such financial
instruments.
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.
10
<PAGE>
FINANCIAL STATEMENTS
VARIABLE ANNUITY ACCOUNT C
AETNA LIFE INSURANCE AND ANNUITY COMPANY
[To be filed by amendment]
<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:*
- Statement of Assets and Liabilities as of December 31,
1996
- Statements of Operations and Changes in Net Assets for the
years ended December 31, 1996 and 1995
- Notes to Financial Statements
- Independent Auditors' Report
- Unaudited Statement of Assets and Liabilities as of
September 30, 1997
- Unaudited Statements of Operations for the nine-month
periods ended September 30, 1997 and 1996
- Unaudited Statement of Changes in Net Assets for the nine-
month period ended September 30, 1997
Financial Statements of the Depositor:*
- Independent Auditors' Report
- Consolidated Statements of Income for the years ended
December 31, 1996, 1995 and 1994
- Consolidated Balance Sheets as of December 31, 1996
and 1995
- Consolidated Statements of Changes in Shareholder's
Equity for the years ended December 31, 1996, 1995
and 1994
- Consolidated Statements of Cash Flows for the years ended
December 31, 1996, 1995 and 1994
- Notes to Consolidated Financial Statements
- Uaudited Consolidated Balance Sheets as of September 30,
1997
- Uaudited Consolidated Statements of Income for the three-
and nine-month periods ended September 30, 1997 and 1996
- Unaudited Consolidated Statements of Changes in
Shareholder's Equity for the nine-month periods ended
September 30, 1997 and 1996
- Unaudited Consolidated Statements of Cash Flows for the
nine-month periods ended September 30, 1997 and 1996
- Condensed Notes to Consolidated Financial Statements
*To be filed by amendment
(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
<PAGE>
(3.1) Broker-Dealer Agreement(2)
(3.2) Alternative Form of Wholesaling Agreement and Related Selling
Agreement(2)
(4.1) Variable Annuity Contract (G-CDA-HF)(3)
(4.2) Variable Annuity Contract (IA-CDA-IA)(3)
(4.3) Variable Annuity Contract (G-CDA-HD)(4)
(4.4) Variable Annuity Contract (GIT-CDA-HO)(5)
(4.5) Variable Annuity Contract (GLIT-CDA-HO)(5)
(4.6) Variable Annuity Contract (GST-CDA-HO)(5)
(4.7) Variable Annuity Contract (I-CDA-HD)(5)
(4.8) Variable Annuity Contract (I-CDA-IA(RP))(2)
(4.9) Endorsements (EIGET-IC(R), EIGF-IC, EGF-IC(SPD)) to Contract
IA-CDA-IA(6)
(4.10) Endorsement (EGET-IC(R)) to Contracts G-CDA-HD and G-CDA-HF(2)
(4.11) Endorsement (EIHDIASDO) to Contracts I-CDA-HD and IA-CDA-IA(7)
(4.12) Endorsement (EHOSDO) to Contracts GIT-CDA-HO, GLIT-CDA-HO and
GST-CDA-HO(7)
(4.13) Endorsement (EHOTABLE97) to Contracts GIT-CDA-HO, GLIT-CDA-HO
and GST-CDA-HO(7)
(4.14) Endorsement (EGHDHFRPSDO97) to Contracts G-CDA-HD and
G-CDA-HF(7)
(4.15) Endorsement (EFUND97) (3)
(4.16) Form of endorsement (EHF97MN) to Contract G-CDA-HF
(5) Variable Annuity Contract Application (710.00.16H)(3)
(6.1) Certification of Incorporation of Aetna Life Insurance and
Annuity Company(8)
(6.2) Amendment of Certificate of Incorporation of Aetna Life
Insurance and Annuity Company(5)
(6.3) By-Laws as amended September 17, 1997, of Aetna Life
Insurance and Annuity Company(9)
(7) Not applicable
(8.1) 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 27, 1993(2)
(8.2) Second Amendment dated January 1, 1996 to 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 27, 1993(10)
(8.3) Third Amendment dated February 11, 1997 to Fund
Participation Agreement between Aetna Life Insurance and
Annuity Company and Calvert Asset
<PAGE>
Management Company (Calvert Responsibly Invested Balanced
Portfolio, formerly Calvert Socially Responsible Series) dated
March 13, 1989 and amended December 27, 1993 and January 1,
1996(11)
(8.4) Fourth Amendment dated February 28, 1997 to 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 27, 1993, January 1, 1996, and February 11, 1997(3)
(8.5) Fund Participation Agreement between Aetna Life Insurance
and Annuity Company, Variable Insurance Products Fund and
Fidelity Distributors Corporation dated February 1, 1994 and
amended on December 15, 1994, February 1, 1995, May 1, 1995,
January 1, 1996 and March 1, 1996(5)
(8.6) Fifth Amendment, dated as of May 1, 1997, to the Fund
Participation Agreement between Aetna Life Insurance and
Annuity Company, Variable Insurance Products Fund and Fidelity
Distributors Corporation dated February 1, 1994 and amended on
December 15, 1994, February 1, 1995, May 1, 1995, January 1,
1996, and March 1, 1996(12)
(8.7) Fund Participation Agreement between Aetna Life Insurance
and Annuity Company, Variable Insurance Products Fund II and
Fidelity Distributors Corporation dated February 1, 1994 and
amended on December 15, 1994, February 1, 1995, May 1, 1995,
January 1, 1996 and March 1,1996(5)
(8.8) Fifth Amendment, dated as of May 1, 1997, to the Fund
Participation Agreement between Aetna Life Insurance and
Annuity Company, Variable Insurance Products Fund II and
Fidelity Distributors Corporation dated February 1, 1994 and
amended on December 15, 1994, February 1, 1995, May 1, 1995,
January 1, 1996, and March 1, 1996(12)
(8.9) Service Agreement between Aetna Life Insurance and Annuity
Company and Fidelity Investments Institutional Operations
Company dated as of November 1, 1995(10)
(8.10) Amendment dated January 1, 1997 to Service Agreement between
Aetna Life Insurance and Annuity Company and Fidelity
Investments Institutional Operations Company dated as of
November 1, 1995(12)
(8.11) Fund Participation Agreement between Aetna Life Insurance and
Annuity Company and Janus Aspen Series dated April 19, 1994
and amended June 15, 1994, July 30, 1995 and March 1, 1996(12)
(8.12) 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(2)
(9) Opinion and Consent of Counsel
(10) Consent of Independent Auditors*
(11) Not applicable
(12) Not applicable
<PAGE>
(13) Schedule for Computation of Performance Data(13)
(14) Not applicable
(15.1) Powers of Attorney(14)
(15.2) Authorization for Signatures(2)
(27) Financial Data Schedule*
*To be filed by amendment
1. Incorporated by reference to Post-Effective Amendment No. 6 to Registration
Statement on Form N-4 (File No. 33-75986), as filed electronically on April
22, 1996 (Accession No. 0000950146-96-000563).
2. Incorporated by reference to Post-Effective Amendment No. 5 to Registration
Statement on Form N-4 (File No. 33-75986), as filed electronically on April
12, 1996 (Accession No. 0000912057-96-006383).
3. Incorporated by reference to Post-Effective Amendment No. 14 to
Registration Statement on Form N-4 (File No. 33-75964), as filed
electronically on July 29, 1997 (Accession No. 0000950146-97-001101).
4. Incorporated by reference to Post-Effective Amendment No. 6 to Registration
Statement on Form N-4 (File No. 33-75982), as filed electronically on April
22, 1996 (Accession No. 0000912057-96-006790).
5. Incorporated by reference to Post-Effective Amendment No. 12 to
Registration Statement on Form N-4 (File No. 33-75964), as filed
electronically on February 11, 1997 (Accession No. 0000950146-97-000159).
6. Incorporated by reference to Post Effective Amendment No. 8 to Registration
Statement on Form N-4 (File No. 33-75964), as filed electronically on
August 30, 1996 (Accession No. 0000928389-96-000150).
7. Incorporated by reference to Post-Effective Amendment No. 13 to
Registration Statement on Form N-4 (File No. 33-75964), as filed
electronically on April 11, 1997 (Accession No. 0000950146-97-000583).
8. Incorporated by reference to Post-Effective Amendment No. 1 to Registration
Statement on Form S-1 (File No. 33-60477), as filed electronically on April
15, 1996 (Accession No. 0000950146-96-000534).
9. Incorporated by reference to Post-Effective Amendment No. 12 to
Registration Statement on Form N-4 (File No. 33-91846), as filed
electronically on October 30, 1997 (Accession No. 0000950146-97-001589).
10. Incorporated by reference to Post-Effective Amendment No. 3 to Registration
Statement on Form N-4 (File No. 33-88720), as filed electronically on June
28, 1996 (Accession No. 0000928389-96-000136).
11. Incorporated by reference to Post-Effective Amendment No. 4 to Registration
Statement on Form N-4 (File No. 333-01107), as filed electronically on
February 26, 1997 (Accession No. 0000950146-97-000241).
<PAGE>
12. Incorporated by reference to Post-Effective Amendment No. 30 to
Registration Statement on Form N-4 (File No. 33-34370), as filed
electronically on September 29, 1997 (Accession No. 0000950146-97-001485).
13. Incorporated by reference to Post-Effective Amendment No. 4 to Registration
Statement on Form N-4 (File No. 33-75964) filed on April 28, 1995.
14. Incorporated by reference to Pre-Effective Amendment No. 1 to Registration
Statement on Form S-6 (File No. 333-27337), as filed electronically on
December 9, 1997 (Accession No. 0000950146-97-001872).
<PAGE>
Item 25. Directors and Officers of the Depositor
Name and Principal
Business Address* Positions and Offices with Depositor
- ------------------- ------------------------------------
Thomas J. McInerney Director and President
Timothy A. Holt Director, Senior Vice President and Chief
Financial Officer
Christopher J. Burns Director and Senior Vice President
J. Scott Fox Director and Senior Vice President
John Y. Kim Director and Senior Vice President
Shaun P. Mathews Director and Senior Vice President
Thomas P. Waldron Director
Deborah Koltenuk Vice President and Treasurer, Corporate Controller
Frederick D. Kelsven Vice President and Chief Compliance Officer
Kirk P. Wickman Vice President, General Counsel and Corporate Secretary
* 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 Item 26 of Post-Effective Amendment No.
31 to the Registration Statement on Form N-4 (File No. 33-34370), as filed
electronically on November 26, 1997 (Accession No. 0000950146-97-001802).
Item 27. Number of Contract Owners
As of November 30, 1997, there were 630,912 individuals holding interests
in variable annuity contracts funded through Variable Annuity Account C.
Item 28. Indemnification
<PAGE>
Reference is hereby made to Section 33-771(f) of the Connecticut General
Statutes ("C.G.S.") regarding indemnification of directors and Section 33-776(4)
regarding indemnification of officers, employees and agents of Connecticut
corporations. These statutes provide in general that Connecticut corporations
incorporated prior to January 1, 1997 shall indemnify their officers, directors,
employees and agents against "liability" (defined as the obligation to pay a
judgment, settlement, penalty, fine, excise tax in the case of an employee
benefit plan or reasonable expenses incurred with respect to a proceeding). In
the case of a proceeding by or in the right of the corporation, indemnification
is limited to reasonable expenses incurred in connection with the proceeding
against the corporation to which the individual was named a party. The
corporation's obligation to provide such indemnification does not apply unless
(1) the individual has met the standard of conduct set forth in Section 33-771;
and (2) a determination is made (by majority vote of a quorum of the board of
directors who were not parties to the proceeding, or if a quorum cannot be
obtained, by a committee of the board selected as described in Section
33-775(b)(2); by special legal counsel selected by the board of directors or
members thereof as described in Section 33-775(b)(3); by shareholders) that the
individual met the standard set forth in Section 33-771; 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. Also, unless limited by
its Certificate of Incorporation, a corporation must indemnify an individual who
was wholly successful on the merits or otherwise against reasonable expenses
incurred by him in connection with a proceeding to which he was a party because
of his relationship as director, officer, employee or agent of the corporation.
The statute does specifically authorize a corporation to procure indemnification
insurance on behalf of an individual who is or was a director, officer, employer
or agent of the corporation. Consistent with the statute, Aetna Inc. 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.
Item 29. Principal Underwriter
(a) In addition to serving as the principal underwriter and depositor for
the Registrant, Aetna Life Insurance and Annuity Company (Aetna) also
acts as the investment adviser, only, for Aetna Series Fund, Inc., and
the principal underwriter and investment adviser for Portfolio
Partners, Inc., Aetna Variable Encore Fund, Aetna Variable Fund, Aetna
Generation Portfolios, Inc., Aetna Income Shares, Aetna Investment
Advisers Fund, Inc., Aetna GET Fund, and Aetna Variable Portfolios,
Inc. (all management investment companies registered under the
Investment Company Act of 1940 (1940 Act)). Additionally, Aetna acts as
the principal underwriter and depositor for Variable Life Account B of
Aetna, Variable Annuity Account B of Aetna and Variable Annuity Account
G of Aetna (separate accounts of Aetna registered as unit investment
trusts under the 1940 Act). Aetna is also the principal underwriter for
Variable Annuity Account I of Aetna Insurance Company of America (AICA)
(a separate account of AICA registered as a unit investment trust under
the 1940 Act).
(b) See Item 25 regarding the Depositor.
<PAGE>
(c) Compensation as of December 31, 1996:
<TABLE>
<CAPTION>
(1) (2) (3) (4) (5)
Name of Net Underwriting Compensation on
Principal Discounts and Redemption or Brokerage
Underwriter Commissions Annuitization Commissions Compensation*
- ---------- ---------------- --------------- ----------- -------------
<S> <C> <C> <C> <C>
Aetna Life Insurance
and Annuity Company $1,325,661 $96,924,599
</TABLE>
* 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
Variable Annuity Account C.
Item 30. Location of Accounts and Records
All accounts, books and other documents required to be maintained by
Section 31(a) of the 1940 Act and the rules under it relating to the securities
described in and issued under this Registration Statement 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;
(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
<PAGE>
(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) The Company hereby represents that it is relying upon and complies with
the provisions of Paragraphs (1) through (4) of the SEC Staff's
No-Action Letter dated November 22, 1988 with respect to language
concerning withdrawal restrictions applicable to plans established
pursuant to Section 403(b) of the Internal Revenue Code. See American
Counsel of Life Insurance; SEC No-Action Letter, [1989 Transfer Binder]
Fed. SEC. L. Rep. (CCH) P. 78,904 at 78,523 (November 22, 1988).
(e) 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.
(f) Aetna Life Insurance and Annuity Company represents that the fees and
charges deducted under the contracts covered by this registration
statement, in the aggregate, are reasonable in relation to the services
rendered, the expenses expected to be incurred, and the risks assumed
by the insurance company.
<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 Post-Effective Amendment to its
Registration Statement on Form N-4 (File No. 33-75964) to be signed on its
behalf by the undersigned, thereunto duly authorized, in the City of Hartford,
State of Connecticut, on the 11th day of December, 1997.
VARIABLE ANNUITY ACCOUNT C OF AETNA
LIFE INSURANCE AND ANNUITY COMPANY
(Registrant)
By: AETNA LIFE INSURANCE AND ANNUITY COMPANY
(Depositor)
By: Thomas J. McInerney*
----------------------------------------
Thomas J. McInerney
President
As required by the Securities Act of 1933, this Post-Effective Amendment
No. 15 to the Registration Statement has been signed by the following persons in
the capacities and on the dates indicated.
Signature Title Date
Thomas J. McInerney* Director and President )
- -------------------------- (principal executive officer) )
Thomas J. McInerney )
)
)
Timothy A. Holt* Director, Senior Vice President ) December
- -------------------------- and Chief Financial Officer ) 11, 1997
Timothy A. Holt )
)
)
Christopher J. Burns* Director )
- -------------------------- )
Christopher J. Burns )
)
)
J. Scott Fox* Director )
- -------------------------- )
J. Scott Fox )
)
)
John Y. Kim* Director )
- -------------------------- )
John Y. Kim )
)
)
Shaun P. Mathews* Director )
- -------------------------- )
Shaun P. Mathews )
<PAGE>
Thomas P. Waldron* Director )
- -------------------------- )
Thomas P. Waldron )
)
)
Deborah Koltenuk* Vice President and Treasurer, )
- -------------------------- Corporate Controller )
Deborah Koltenuk )
By: /s/ Julie E. Rockmore
---------------------
Julie E. Rockmore
*Attorney-in-Fact
<PAGE>
VARIABLE ANNUITY ACCOUNT C
EXHIBIT INDEX
<TABLE>
<CAPTION>
Exhibit No. Exhibit Page
- ---------- ------- ----
<S> <C> <C>
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 Broker-Dealer Agreement *
99-B.3.2 Alternative Form of Wholesaling Agreement and Related Selling Agreement *
99-B.4.1 Variable Annuity Contract (G-CDA-HF) *
99-B.4.2 Variable Annuity Contract (IA-CDA-IA) *
99-B.4.3 Variable Annuity Contract (G-CDA-HD) *
99-B.4.4 Variable Annuity Contract (GIT-CDA-HO) *
99-B.4.5 Variable Annuity Contract (GLIT-CDA-HO) *
99-B.4.6 Variable Annuity Contract (GST-CDA-HO) *
99-B.4.7 Variable Annuity Contract (I-CDA-HD) *
99-B.4.8 Variable Annuity Contract (I-CDA-IA(RP)) *
99-B.4.9 Endorsements (EIGET-IC(R), EIGF-IC, EGF-IC(SPD)) to Contract IA-CDA-IA *
99-B.4.10 Endorsement (EGET-IC(R)) to Contracts G-CDA-HD and G-CDA-HF *
99-B.4.11 Endorsement (EIHDIASDO) to Contracts I-CDA-HD and IA-CDA-IA *
99-B.4.12 Endorsement (EHOSDO) to Contracts GIT-CDA-HO, GLIT-CDA-HO and GST-CDA-HO *
</TABLE>
*Incorporated by reference
<PAGE>
<TABLE>
<CAPTION>
Exhibit No. Exhibit Page
- ---------- ------- ----
<S> <C> <C>
99-B.4.13 Endorsement (EHOTABLE97) to Contracts
GIT-CDA-HO, GLIT-CDA-HO and GST-CDA-HO *
Endorsement (EGHDHFRPSDO97) to Contracts
99-B.4.14 G-CDA-HD and G-CDA-HF *
99-B.4.15 Endorsement (EFUND97) *
99-B.4.16 Form of endorsement (EHF97MN) to Contract G-CDA-HF -----
99-B.5 Variable Annuity Contract Application (710.00.16H) *
99-B.6.1 Certification of Incorporation of Aetna Life Insurance and Annuity Company *
99-B.6.2 Amendment of Certificate of Incorporation of Aetna Life Insurance and Annuity
Company *
99-B.6.3 By-Laws as amended September 17, 1997, of Aetna Life Insurance and Annuity
Company *
99-B.8.1 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 27, 1993 *
99-B.8.2 Second Amendment dated January 1, 1996 to 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 27, 1993 *
99-B.8.3 Third Amendment dated February 11, 1997 to 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 27, 1993 and January 1, 1996 *
</TABLE>
*Incorporated by reference
<PAGE>
<TABLE>
<CAPTION>
Exhibit No. Exhibit Page
- ---------- ------- ----
<S> <C> <C>
99-B.8.4 Fourth Amendment dated February 28, 1997 to 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 27, 1993, January 1, 1996 and
February 11, 1997 *
99-B.8.5 Fund Participation Agreement between Aetna Life Insurance
and Annuity Company, Variable Insurance Products Fund and
Fidelity Distributors Corporation dated February 1, 1994
and amended on December 15, 1994, February 1, 1995, May 1, 1995,
January 1, 1996 and March 1, 1996 *
99-B.8.6 Fifth Amendment, dated as of May 1, 1997, to the Fund
Participation Agreement between Aetna Life Insurance and
Annuity Company, Variable Insurance Products Fund and
Fidelity Distributors Corporation dated February 1, 1994
and amended on December 15, 1994, February 1, 1995, May 1,
1995, January 1, 1996, and March 1, 1996 *
99-B.8.7 Fund Participation Agreement between Aetna Life Insurance
and Annuity Company, Variable Insurance Products Fund II
and Fidelity Distributors Corporation dated February 1,
1994 and amended on December 15, 1994, February 1, 1995, May 1, 1995,
January 1, 1996 and March 1, 1996 *
99-B.8.8 Fifth Amendment, dated as of May 1, 1997, to the Fund
Participation Agreement between Aetna Life Insurance and
Annuity Company, Variable Insurance Products Fund II and
Fidelity Distributors Corporation dated February 1, 1994
and amended on December 15, 1994, February 1, 1995, May 1,
1995, January 1, 1996, and March 1, 1996 *
99-B.8.9 Service Agreement between Aetna Life Insurance and Annuity Company
and Fidelity Investments Institutional Operations Company dated as
of November 1, 1995 *
</TABLE>
*Incorporated by reference
<PAGE>
<TABLE>
<CAPTION>
Exhibit No. Exhibit Page
- ---------- ------- ----
<S> <C> <C>
99-B.8.10 Amendment dated January 1, 1997 to Service Agreement between Aetna Life
Insurance and Annuity Company and Fidelity Investments Institutional
Operations Company dated as of November 1, 1995 *
99-B.8.11 Fund Participation Agreement between Aetna Life Insurance and Annuity
Company and Janus Aspen Series dated April 19, 1994 and amended June 15,
1994, July 30, 1995 and March 1, 1996 *
99-B.8.12 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.9 Opinion and Consent of Counsel _______
99-B.10 Consent of Independent Auditors **
99-B.13 Schedule for Computation of Performance Data *
99-B.15.1 Powers of Attorney *
99-B.15.2 Authorization for Signatures *
27 Financial Data Schedule **
</TABLE>
*Incorporated by reference
** To be filed by amendment
Aetna Life Insurance and Annuity Company
ENDORSEMENT
The Contract and Certificate are hereby endorsed as follows:
Section 3.08 Net Return Factor(s) - Separate Account is amended by restating
paragraph (e) as follows:
(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.
Section 4.02 Terms of Annuity Options is amended by restating paragraph (c) as
follows:
(c) No choice of any Annuity option may be made if the first payment would
be less than $50 per month or if the total payments in a year would be
less than $250.
Section 4.02 Terms of Annuity Options is amended by restating the first sentence
of paragraph (e) as follows:
The Annuitant's and second Annuitant's adjusted age is his or her age as of
the birthday closest to the Annuity commencement date reduced by one year
for Annuity commencement dates occurring during the period of time from
July 1, 1992 through December 31, 1999. The Annuitant's and second
Annuitant's age will be reduced by two years for Annuity commencement dates
occurring during the period of time from January 1, 2000 through December
31, 2009. The Annuitant's and second Annuitant's age will be reduced by one
additional year for Annuity commencement dates occurring in each succeeding
decade.
Section 4.02 Terms of Annuity Options is amended by adding paragraph (g) as
follows:
(g) At the request of the Contract Holder or the Participant if the
Contract Holder has directed Aetna to accept such a request from the
Participant, all or any portion of the Current Value may be transferred
from any Fund to any other allowable Fund. Aetna reserves the right to
allow no more than four Funds to be selected at any one time. Fund
transfers will be processed as of the Valuation Period following
receipt of a transfer request in good order at Aetna's Home Office.
During the Annuity period, the maximum number of allowable transfers in
a calendar year is four. Aetna reserves the right to increase the
number of allowable transfers.
1
EHF97MN
<PAGE>
Fund transfer requests must be expressed as a percentage of each Funds
allocation to the Annuity payment. Aetna may establish a minimum
transfer amount.
Section 4.03 Death of Annuitant/Beneficiary is amended and restated as follows:
Upon the death of the Annuitant(s), any remaining guaranteed payments will
continue to the beneficiary unless the beneficiary elects to receive the
present value of any remaining guaranteed payments in a lump sum. Such
payments will be paid at least as rapidly as under the method of
distribution then in effect. If the beneficiary dies while receiving
payments, the present value of any remaining guaranteed payments will be
paid in one sum to the beneficiary's estate. The interest rate used to
determine the first Annuity payment will be used to calculate the present
value. The present value will be determined as of the Valuation Period in
which proof of death acceptable to Aetna and a request for payment is
received at Aetna's Home Office.
Section 4.06 Annuity Options is amended by deleting Option 1 - Payment of
Interest on Sum Left with Aetna.
Section 4.06 Annuity Options is amended by restating the second and third
paragraphs of Option 2 as follows:
The number of years chosen must be at least five and not more than 30 and
the Annuity may be a Fixed or Variable Annuity.
Section 4.06 Annuity Options is amended by restating Option 3 as follows:
Option 3 -- Life Income -- An Annuity will be paid for the life of the
Annuitant. When this option is chosen, a choice of the following guarantees
is also available:
(a) Aetna will guarantee payments for 5-30 years; or
(b) Cash Refund Guarantee -- payments will be guaranteed for the amount
applied to the Annuity Option. If the Annuitant dies prior to the
payment of the amount applied to the Annuity Option (less any premium
tax), any remaining balance will be paid in one sum to the beneficiary.
This choice is available only on a fixed basis.
Section 4.06 Annuity Options is amended by adding paragraphs (e) and (f) and a
new paragraph following paragraph (f) to Option 4 as follows:
(e) 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.
2
<PAGE>
(f) 100% of the payment to continue after the first death. Payments are
guaranteed for the amount applied to the Annuity Option (less any
premium tax), any remaining balance will be paid in one sum to the
beneficiary. This option is only available on a fixed basis.
If a Fixed Annuity option is chosen under Option 2, Option 3(a) or Option
4(a) or (d), then the Participant may elect a payment increase of 1, 2 or
3%, compounded annually. An election of such payment increase will result
in an adjustment of the policy guarantees by an actuarially equivalent
payment factor.
Section 4.06 Annuity Options is amended by restating the annuity tables as
follows:
3
<PAGE>
OPTION 2
Payments for a Stated Period of Time
Amount of Monthly Payment for Each $1,000
After Deduction of any Charge for Premium Taxes
Rates for a Fixed Annuity with Guaranteed Interest Rate of 3.0%
------------------------------------------------------------------
Monthly Monthly
Years Payment Years Payment
------------------------------------------------------------------
5 $17.91 18 $5.96
6 15.14 19 5.73
7 13.16 20 5.51
8 11.68 21 5.32
9 10.53 22 5.15
10 9.61 23 4.99
11 8.86 24 4.84
12 8.24 25 4.71
13 7.71 26 4.59
14 7.26 27 4.47
15 6.87 28 4.37
16 6.53 29 4.27
17 6.23 30 4.18
------------------------------------------------------------------
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 3.5%
------------------------------------------------------------------
Monthly Monthly
Years Payment Years Payment
------------------------------------------------------------------
5 $18.12 18 $6.20
6 15.35 19 5.97
7 13.38 20 5.75
8 11.90 21 5.56
9 10.75 22 5.39
10 9.83 23 5.24
11 9.09 24 5.09
12 8.46 25 4.96
13 7.94 26 4.84
14 7.49 27 4.73
15 7.10 28 4.63
16 6.76 29 4.53
17 6.47 30 4.45
------------------------------------------------------------------
4
<PAGE>
OPTION 2
Payments for a Stated Period of Time
Amount of 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%
------------------------------------------------------------------
Monthly Monthly
Years Payment Years Payment
------------------------------------------------------------------
5 $18.74 18 $6.94
6 15.99 19 6.71
7 14.02 20 6.51
8 12.56 21 6.33
9 11.42 22 6.17
10 10.51 23 6.02
11 9.77 24 5.88
12 9.16 25 5.76
13 8.64 26 5.65
14 8.20 27 5.54
15 7.82 28 5.45
16 7.49 29 5.36
17 7.20 30 5.28
------------------------------------------------------------------
5
<PAGE>
OPTION 3
Life Income
Amount of Monthly Payment for Each $1,000
After Deduction of any Charge for Premium Taxes
Rates for a Fixed Annuity with Guaranteed Interest Rate of 3.0%
Payments Guaranteed for a Stated Period of Years
<TABLE>
<CAPTION>
- ---------------------------------------------------------------------------------------------------------
Adjusted Age Cash
of Annuitant None 5 10 15 20 Refund
- ---------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
50 $4.05 $4.05 $4.03 $3.99 $3.93 $3.89
51 4.12 4.11 4.09 4.05 3.99 3.94
52 4.19 4.19 4.16 4.11 4.04 4.00
53 4.27 4.26 4.23 4.18 4.10 4.06
54 4.35 4.34 4.31 4.25 4.16 4.12
55 4.44 4.42 4.39 4.32 4.22 4.19
56 4.53 4.51 4.47 4.40 4.29 4.26
57 4.62 4.61 4.56 4.48 4.35 4.33
58 4.72 4.71 4.65 4.56 4.42 4.41
59 4.83 4.81 4.75 4.64 4.49 4.49
60 4.95 4.93 4.86 4.73 4.55 4.57
61 5.07 5.05 4.97 4.83 4.62 4.66
62 5.20 5.17 5.08 4.92 4.69 4.76
63 5.34 5.31 5.20 5.02 4.76 4.85
64 5.49 5.45 5.33 5.12 4.83 4.96
65 5.65 5.61 5.47 5.22 4.89 5.06
66 5.82 5.77 5.61 5.33 4.96 5.18
67 6.01 5.94 5.75 5.44 5.02 5.30
68 6.20 6.13 5.91 5.54 5.08 5.42
69 6.41 6.33 6.07 5.65 5.14 5.56
70 6.64 6.54 6.23 5.76 5.19 5.70
71 6.88 6.76 6.41 5.86 5.24 5.84
72 7.14 7.00 6.59 5.97 5.28 6.00
73 7.43 7.26 6.77 6.06 5.32 6.16
74 7.73 7.53 6.96 6.16 5.35 6.33
75 8.06 7.82 7.14 6.25 5.38 6.51
- ---------------------------------------------------------------------------------------------------------
</TABLE>
Rates are based on mortality from 1983 Table a. The rates do not differ by sex.
Rates for ages not shown will be provided on request and will be computed
on a basis consistent with the rates in the above tables
6
<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 3.5%
Payments Guaranteed for a Stated Period of Years
<TABLE>
<CAPTION>
- ---------------------------------------------------------------------------------------------------------
Adjusted
Age of
Annuitant None 5 10 15 20
- ---------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
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
- ---------------------------------------------------------------------------------------------------------
</TABLE>
Rates are based on mortality from 1983 Table a. The rates do not differ by sex.
Rates for ages not shown will be provided on request and will be computed
on a basis consistent with the rates in the above tables.
7
<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 Years
<TABLE>
<CAPTION>
- ---------------------------------------------------------------------------------------------------------
Adjusted
Age of
Annuitant None 5 10 15 20
- ---------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
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
- ---------------------------------------------------------------------------------------------------------
</TABLE>
Rates are based on mortality from 1983 Table a. The rates do not differ by sex.
Rates for ages not shown will be provided on request and will be computed
on a basis consistent with the rates in the above tables.
8
<PAGE>
OPTION 4
Life Income for Two Annuitants
Amount of Monthly Payment for Each $1,000
After Deduction of any Charge for Premium Taxes
Rates for a Fixed Annuity with Guaranteed Interest Rate of 3.0%
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------
Adjusted Ages
- --------------------------- Option 4d
Second 10 Years
Annuitant Annuitant Option 4a Option 4b Option 4c Guaranteed Option 4e Option 4f
- ------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
55 50 $3.69 $4.05 $4.27 $3.69 $4.03 $3.69
55 55 3.88 4.25 4.47 3.87 4.14 3.87
55 60 3.99 4.44 4.71 3.98 4.20 3.98
60 55 3.99 4.44 4.71 3.98 4.42 3.98
60 60 4.24 4.71 4.99 4.23 4.57 4.23
60 65 4.38 4.97 5.32 4.38 4.65 4.38
65 60 4.38 4.97 5.32 4.38 4.93 4.38
65 65 4.72 5.33 5.70 4.71 5.14 4.72
65 70 4.93 5.68 6.15 4.91 5.27 4.91
70 65 4.93 5.68 6.15 4.91 5.66 4.91
70 70 5.40 6.21 6.70 5.36 5.96 5.38
70 75 5.69 6.68 7.32 5.62 6.13 5.66
75 70 5.69 6.68 7.32 5.62 6.67 5.66
75 75 6.37 7.45 8.15 6.23 7.12 6.33
75 80 6.78 8.11 8.99 6.54 7.36 6.71
- ------------------------------------------------------------------------------------------------------------
</TABLE>
Rates are based on mortality from 1983 Table a. The rates do not differ by sex.
Rates for ages not shown will be provided on request and will be computed
on a basis consistent with the rates in the above tables.
9
<PAGE>
OPTION 4
Life Income for Two Annuitants
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 3.5%
<TABLE>
<CAPTION>
- ----------------------------------------------------------------------------------------------
Adjusted Ages
- --------------------------- Option 4d
Second 10 Years
Annuitant Annuitant Option 4a Option 4b Option 4c Guaranteed Option 4e
- ----------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
55 50 $3.97 $4.35 $4.56 $3.97 $4.31
55 55 4.16 4.54 4.76 4.15 4.42
55 60 4.27 4.73 5.00 4.26 4.48
60 55 4.27 4.73 5.00 4.26 4.70
60 60 4.51 4.99 5.27 4.50 4.84
60 65 4.66 5.25 5.61 4.65 4.93
65 60 4.66 5.25 5.61 4.65 5.22
65 65 4.99 5.61 5.99 4.98 5.42
65 70 5.19 5.97 6.44 5.17 5.54
70 65 5.19 5.97 6.44 5.17 5.93
70 70 5.67 6.49 6.99 5.62 6.23
70 75 5.95 6.96 7.61 5.87 6.40
75 70 5.95 6.96 7.61 5.87 6.95
75 75 6.64 7.73 8.43 6.48 7.40
75 80 7.04 8.39 9.29 6.79 7.64
- ----------------------------------------------------------------------------------------------
</TABLE>
Rates are based on mortality from 1983 Table a. The rates do not differ by sex.
Rates for ages not shown will be provided on request and will be computed
on a basis consistent with the rates in the above tables.
10
<PAGE>
OPTION 4
Life Income for Two Annuitants
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%
<TABLE>
<CAPTION>
- -----------------------------------------------------------------------------------------------
Adjusted Ages
- --------------------------- Option 4d
Second 10 Years
Annuitant Annuitant Option 4a Option 4b Option 4c Guaranteed Option 4e
- -----------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
55 50 $4.88 $5.26 $5.48 $4.88 $5.23
55 55 5.04 5.44 5.66 5.04 5.32
55 60 5.15 5.63 5.91 5.14 5.38
60 55 5.15 5.63 5.91 5.14 5.59
60 60 5.37 5.87 6.16 5.37 5.72
60 65 5.52 6.14 6.51 5.51 5.80
65 60 5.52 6.14 6.51 5.51 6.10
65 65 5.83 6.49 6.87 5.82 6.29
65 70 6.04 6.84 7.34 6.00 6.41
70 65 6.04 6.84 7.34 6.00 6.81
70 70 6.49 7.35 7.87 6.44 7.08
70 75 6.77 7.84 8.51 6.68 7.25
75 70 6.77 7.84 8.51 6.68 7.81
75 75 7.45 8.60 9.33 7.27 8.25
75 80 7.86 9.28 10.20 7.57 8.49
- -------------- ------------ ------------- ------------ ------------- -------------- -------------
</TABLE>
Rates are based on mortality from 1983 Table a. The rates do not differ by sex.
Rates for ages not shown will be provided on request and will be computed
on a basis consistent with the rates in the above tables.
11
<PAGE>
Section 6.01 entitled Maintenance Fee is deleted and replaced with
the following statement:
The Maintenance Fee will be -$0-.
Section 6.02 entitled Surrender Fee is amended by adding the following to the
last paragraph:
(h) On account of a Participant's separation from service. The
Contract Holder must submit documentation satisfactory to Aetna to
confirm that the Participant is no longer providing services to
the employer.
Endorsed and made a part of the Contract and Certificate on the Effective Date
of the Contract and Certificate.
/s/ Thomas J. McInerney
-----------------------------------
Thomas J. McInerney, President
12
[AETNA LETTERHEAD]
[AETNA LOGO]
151 Farmington Avenue
Hartford, CT 06156
Julie E. Rockmore
Counsel
Law Division, RE4A
December 11, 1997 Investments & Financial Services
(860) 273-4686
Fax: (860) 273-0330
Securities and Exchange Commission
450 Fifth Street, N.W.
Washington, DC 20549
Re: Aetna Life Insurance and Annuity Company and its Variable
Annuity Account C
Post-Effective Amendment No. 15 to Registration Statement on Form N-4
Prospectus Title: AetnaPlus - Group and Individual Deferred
Variable Annuity Contracts for Tax-Deferred Annuity Plans
(Section 403(b)) and Defined Contribution Plans (Section 401(a))
File Nos. 33-75964* and 811-2513
Dear Sir or Madam:
The undersigned serves as counsel to Aetna Life Insurance and Annuity Company, a
Connecticut life insurance company (the "Company"). It is my understanding that
the Company, as depositor, has registered an indefinite amount of securities
(the "Securities") under the Securities Act of 1933 (the "Securities Act") as
provided in Rule 24f-2 under the Investment Company Act of 1940 (the "Investment
Company Act").
In connection with this opinion, I have reviewed the N-4 Registration Statement
as amended to the date hereof and this Post-Effective Amendment No. 15. 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 rendering this opinion. For
purposes of such examination, I have assumed the genuineness of all signatures
on original documents and the conformity to the original of all copies.
I am admitted to practice law in Connecticut, 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.
- -----------------------
* Pursuant to Rule 429(a) under the Securities Act of 1933, the
Registrant has included a combined prospectus under this Registration
Statement which includes all information that would currently be required
in a prospectus relating to the securities covered by the following earlier
Registration Statements: 33-75958, 33-75960 and 33-75994.
<PAGE>
Based upon the foregoing, and, assuming the Securities are sold in accordance
with the provisions of the prospectus, I am of the opinion that the Securities
being registered will be legally issued and will represent binding obligations
of the Company.
I consent to the filing of this opinion as an exhibit to the Registration
Statement.
Sincerely,
/s/ Julie E. Rockmore
- ----------------------
Julie E. Rockmore
