Prospectus - May 1, 2000
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The Funds
Aetna Ascent VP
Aetna Balanced VP, Inc.
Aetna Income Shares d/b/a Aetna Bond VP
Aetna Crossroads VP
Aetna Growth VP
Aetna Variable Fund d/b/a Aetna Growth and Income VP
Aetna High Yield VP(1)
Aetna Index Plus Large Cap VP
Aetna Index Plus Mid Cap VP
Aetna Index Plus Small Cap VP
Aetna International VP
Aetna Legacy VP
Aetna Variable Encore Fund d/b/a Aetna Money Market VP
Aetna Real Estate Securities VP(1)
Aetna Small Company VP
Aetna Technology VP
Aetna Value Opportunity VP
AIM V.I. Capital Appreciation Fund
AIM V.I. Growth Fund
AIM V.I. Growth and Income Fund
AIM V.I. Value Fund
Calvert Social Balanced Portfolio
DEM[Reg TM] Equity Fund (Institutional Shares)(2)
Fidelity Variable Insurance Products Fund (VIP) Equity-Income Portfolio
Fidelity Variable Insurance Products Fund (VIP) Growth Portfolio
Fidelity Variable Insurance Products Fund (VIP) Overseas Portfolio
Fidelity Variable Insurance Products Fund II (VIP II) Contrafund[Reg TM]
Portfolio
Janus Aspen Aggressive Growth Portfolio
Janus Aspen Balanced Portfolio
Janus Aspen Flexible Income Portfolio
Janus Aspen Growth Portfolio
Janus Aspen Worldwide Growth Portfolio
Janus Twenty Fund(2)
Lexington Natural Resources Trust(3)
Oppenheimer Global Securities Fund/VA
Oppenheimer Strategic Bond Fund/VA
Portfolio Partners, Inc. (PPI) MFS Capital Opportunities Portfolio (formerly
PPI MFS Value Equity Portfolio)
Portfolio Partners, Inc. (PPI) MFS Emerging Equities Portfolio
Portfolio Partners, Inc. (PPI) MFS Research Growth Portfolio
Portfolio Partners, Inc. (PPI) Scudder International Growth Portfolio
Portfolio Partners, Inc. (PPI) T. Rowe Price Growth Equity Portfolio
The Contracts. The contracts described in this prospectus are group or
individual deferred variable annuity contracts issued by Aetna Life Insurance
and Annuity Company (the Company). They are intended to be used as funding
vehicles for certain types of retirement plans and to qualify for beneficial
tax treatment and/or to provide current income reduction under certain sections
of the Internal Revenue Code of 1986, as amended (Tax Code).
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Why Reading this Prospectus is Important. Before you participate in the
contract through your retirement plan, you should read this prospectus. It
provides facts about the contract and its investment options. Plan sponsors
(generally your employer or a trust) should read this prospectus to help
determine if the contract is appropriate for their plan. Keep this document for
future reference.
Table of Contents . . . page 4
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Investment Options. The contracts offer variable investment options and fixed
interest options. When we establish your account(s), the contract holder, or
you if permitted by the plan, instructs us to direct account dollars to any of
the available options. Some investment options may be unavailable through
certain contracts and plans, or in some states.
Variable Investment Options. These options are called subaccounts. The
subaccounts are within Variable Annuity Account C (the separate account), a
separate account of the Company. Each subaccount invests in one of the mutual
funds (funds) listed on this page. Earnings on amounts invested in a subaccount
will vary depending upon the performance and fees of its underlying fund. You
do not invest directly in or hold shares of the funds.
Risks Associated with Investing in the Funds. Information about the risks of
investing in the funds is located in the "Investment Option" section of this
prospectus at page 11 and in each fund prospectus. Read this prospectus in
conjunction with the fund prospectus, and retain the prospectus for future
reference.
Getting Additional Information. You may obtain the May 1, 2000, Statement of
Additional Information (SAI) by indicating your request on your enrollment
materials or calling the Company at 1-800-262-3862. You may also obtain an SAI
for any of the funds by calling that number. This prospectus, the SAI and other
information about the separate account are posted on the Securities and
Exchange Commission (SEC) web site, www.sec.gov and copies of this information
may also be obtained, after paying a duplicating fee, by contacting the SEC
Public Reference Room electronically at the following e-mail address:
[email protected], or by writing the Commission's Public Reference Section,
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(1) Effective May 15, 2000, transfers or deposits are not allowed into the
subaccount investing in this fund except those made pursuant to standing
customer instructions (e.g., payroll deduction allocations, dollar cost
averaging) in effect prior to this date. See "Important Information
Regarding Aetna High Yield VP and Aetna Real Estate Securities VP
Subaccounts."
(2) This fund is available to the general public. See "Additional Risks of
Investing in the Funds."
(3) Transfers or deposits are not allowed into the subaccount investing in this
fund, except from accounts established under the contract before May 1,
1998. As soon as all those who have current allocations to the subaccount
under the contract have redirected their allocations to other investment
options, we will close the subaccount to all investments (except loan
repayments that we automatically deposit into the subaccount according to
our loan repayment procedures).
<PAGE>
Prospectus - May 1, 2000 (continued)
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Washington, D.C. 20549-0102. This information can be reviewed and copied at the
Commission's Public Reference Room in Washington, D.C. and information on the
operation of the Public Reference Room may be obtained by calling
1-202-942-8090. The SAI table of contents is listed on page 47 of this
prospectus. The SAI is incorporated into this prospectus by reference.
Additional Disclosure Information. Neither the SEC, nor any state securities
commission, has approved or disapproved the securities offered through this
prospectus or passed on the accuracy or adequacy of this prospectus. Any
representation to the contrary is a criminal offense. This prospectus is valid
only when accompanied by current prospectuses of the funds and the Guaranteed
Accumulation Account. We do not intend for this prospectus to be an offer to
sell or a solicitation of an offer to buy these securities in any state that
does not permit their sale. We have not authorized anyone to provide you with
information that is different from that contained in this prospectus.
Fixed Interest Options.
> Guaranteed Accumulation Account
> Fixed Plus Account
> Fixed Account
Except as specifically mentioned, this prospectus describes only the variable
investment options. However, we describe the fixed interest options in the
appendices to this prospectus. There is also a separate prospectus for the
Guaranteed Accumulation Account.
Important Information Regarding Aetna High Yield VP and Aetna Real Estate
Securities VP Subaccounts
Subaccounts to be Closed to New Investments
Effective May 15, 2000, the Aetna High Yield VP and Aetna Real Estate
Securities VP subaccounts will no longer be available for new investment. After
that date, the Company will only accept deposits into those subaccounts that
are made pursuant to standing customer instructions (e.g., payroll deduction
allocations, dollar cost averaging, etc.) in effect before the close of
business on May 12, 2000.
Fund Shares to be Substituted with Shares of Aetna Money Market VP.
Plan of Substitution. On or before September 1, 2000, subject to applicable
regulatory approvals and the requisite vote of shareholders of the applicable
fund, all existing balances in Aetna High Yield VP and Aetna Real Estate
Securities VP will be invested in (substituted with) shares of Aetna Money
Market VP. Contract owners or participants will not incur any fees or charges
as a result of the substitution. In addition, on and after September 1, 2000,
all investment allocations then being directed to the Aetna High Yield VP and
Aetna Real Estate Securities VP subaccounts will be redirected to the Aetna
Money Market VP subaccount. The Company believes that the substitution will not
create any tax liability for contract owners or participants.
<PAGE>
Prospectus - May 1, 2000 (continued)
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Transfer Rights. At any time prior to the date of substitution, contract owners
or participants may transfer their accumulation values from the subaccounts
investing in substituted funds into any other investment options available
under the contract, and no transfer fees or other charges will be imposed. From
and after the date of substitution, contract owners or participants who had
values transferred from a subaccount as a result of a substitution may transfer
among any of the remaining investment options in accordance with the terms of
the contract, also free of any transfer fees and charges.
Surrender Rights. If a contract owner or participant whose shares are
substituted elects to make a surrender under the contract (if permitted by the
plan and applicable tax law) within 30 days after the date of the substitution,
the Company will waive any early withdrawal charge on amounts transferred as a
result of the substitution. This offer to waive the early withdrawal charge
will not apply to amounts transferred after April 10, 2000 from the other
investment options to the Aetna High Yield VP or Aetna Real Estate Securities
VP subaccounts. A contract owner or participant who exercises this surrender
right may incur income tax liability and a tax penalty. See the "Taxation"
section of this prospectus for a discussion of tax consequences resulting from
surrender. Contract owners or participants should seek qualified tax advice
before exercising their surrender rights.
<PAGE>
TABLE OF CONTENTS
<TABLE>
<S> <C>
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Contract Overview: Who's Who; Contract Facts .................. 5
The Contract and Your Retirement Plan (sidebar)
Retirement Plan (sidebar)
Plan Type (sidebar)
Contract Rights (sidebar)
Contract Phases: Accumulation Phase, The Income Phase ......... 6
Questions: Contacting the Company (sidebar)
Sending forms and written requests in good order (sidebar)
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</TABLE>
<TABLE>
<S> <C>
Fee Table ...................................................... 7
Condensed Financial Information ................................ 11
Investment Options ............................................. 11
Transfers ...................................................... 13
Contract Purchase and Participation ............................ 14
Contract Ownership and Rights .................................. 15
Right to Cancel ................................................ 16
Fees ........................................................... 17
Your Account Value ............................................. 23
Withdrawals .................................................... 25
Loans .......................................................... 27
Systematic Distribution Options ................................ 27
Death Benefit .................................................. 28
The Income Phase ............................................... 30
Taxation ....................................................... 34
Other Topics ................................................... 41
</TABLE>
The Company - Variable Annuity Account C - Performance Reporting - Voting
Rights - Contract Distribution - Contract Modification - Legal Matters and
Proceedings - Payment Delay or Suspension - Transfer of Ownership; Assignment -
Account Termination - Intent to Confirm Quarterly
<TABLE>
<S> <C>
Contents of the Statement of Additional Information ............ 46
Appendix I - Guaranteed Accumulation Account ................... 47
Appendix II - Fixed Account .................................... 49
Appendix III - Fixed Plus Account .............................. 51
Appendix IV - Employee Appointment of Employer as Agent Under an
Annuity Contract ............................................... 55
Appendix V - Fund Descriptions ................................. 56
Appendix VI - Condensed Financial Information .................. 59
</TABLE>
4
<PAGE>
Contract Overview
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The following is intended as a summary. Please read each section of this
prospectus for additional information.
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Who's Who
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You (the participant)*: The individual who participates in the contract through
a retirement plan.
Plan Sponsor: The sponsor of your retirement plan. Generally, your employer or
a trust.
Contract Holder*: The person to whom we issue the contract. Generally, the plan
sponsor.
We (the Company): Aetna Life Insurance and Annuity Company. We issue the
contract.
For greater detail, please review "Contract Ownership and Rights" and "Contract
Purchase and Participation."
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* Certain contracts are purchased by and issued directly to persons
participating in certain plans. The words "you" and "participant" apply to
these individuals, except that these individuals have all rights under the
contract. The word "contract holder" also applies to these individuals,
except that these individuals have no responsibilities to other participants
or beneficiaries.
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Contract Facts
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Free Look/Right to Cancel: Contract holders may cancel the contract no later
than 10 days after they receive the contract (or a longer period if required by
state law). Participants in 403(b) plans or in some plans under 401(a)/401(k)
or 403(a) may cancel their participation in the contract no later than 10 days
after they receive evidence of participation in the contract. See "Right to
Cancel."
Death Benefit: A beneficiary may receive a benefit in the event of your death
prior to the income phase. Death benefits during the income phase depend upon
the payment option selected. See "Death Benefit" and "The Income Phase."
Withdrawals: During the accumulation phase, you may, under some plans, withdraw
all or part of your account value. Amounts withdrawn may be subject to an early
withdrawal charge, other deductions, tax withholding and taxation. See
"Withdrawals" and "Taxation."
Systematic Distribution Options: These allow you to receive regular payments
from your account, while retaining the account in the accumulation phase. See
"Systematic Distribution Options."
Fees: Certain fees are deducted from your account value. See "Fee Table" and
"Fees."
Taxation: You will not generally pay taxes on any earnings from the annuity
contract described in this prospectus until they are withdrawn (or in the case
of a 457 plan, paid or made available to you or a beneficiary). Tax-qualified
retirement arrangements (e.g. 401(a), 401(k), 403(a), 403(b) or 457 plans) also
defer payment of taxes on earnings until they are withdrawn (or in the case of
a 457 plan, paid or made available to you or a beneficiary). When an annuity
contract is used to fund a tax-qualified retirement arrangement, you should
know that the annuity contract does not provide any additional tax deferral of
earnings beyond the tax deferral provided by the tax-qualified retirement
arrangement. However, annuities do provide other features and benefits which
may be valuable to you. You should discuss your alternatives with your
financial representative.
Amounts you receive as a distribution will be generally included in your gross
income and will be subject to taxation. Tax penalties may apply in some
circumstances. See "Taxation."
The Contract and Your Retirement Plan
Retirement Plan (plan): A plan sponsor has established a plan for you. This
contract is offered as a funding option for that plan. We are not a party to
the plan.
Plan Type: We refer to the plan by the Tax Code section under which it
qualifies. For example: a "457 plan" is a plan that qualifies for tax treatment
under code section 457. To learn which code section applies to your plan,
contact your plan sponsor, your Aetna representative or the Company.
Contract Rights: Rights under the contract and who may exercise those rights,
may vary by plan type. Also, while the contract may reserve certain rights for
the contract holder, the contract holder may permit you to exercise those
rights through the plan.
5
<PAGE>
Questions: Contacting the Company. Contact your local representative or write
or call the Home Office:
Aetna Financial Services
Annuity Services
151 Farmington Avenue
Hartford, CT 06156-1277
1-800-262-3862
(1-800-462-4458 for participants in contracts issued to the San Bernardino
County and Macomb County plans)
Sending forms and written requests in good order
If you are writing to change your beneficiary, request a withdrawal, or for any
other purpose, contact your local representative or the Company to learn what
information is required in order for the request to be in "good order." We can
only act upon written requests that are received in good order.
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Contract Phases
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I. The Accumulation Phase (accumulating retirement benefits)
STEP 1: You or the contract holder provide Aetna Life Insurance and Annuity
Company with your completed enrollment materials. According to the plan, we set
up one or more accounts for you. We may set up account(s) for employer
contributions and/or for contributions from your salary.
------------------
Payments to
Your Account
------------------
Step 1
---------------------------------------------------
Aetna Life Insurance and Annuity Company
---------------------------------------------------
(a) Step 2 (b)
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Variable Annuity
Fixed Account C
Interest
Options Variable Investment Options
- ---------
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The Subaccounts
---------------------------------------------------
A B Etc.
---------------------------------------------------
Step 3
---------------------------------------------------
Mutual Mutual Etc.
Fund A Fund B
---------------------------------------------------
STEP 2: The contract holder, or you if permitted by your plan, directs us to
invest your account dollars in any of the:
(a) Fixed Interest Options; and/or
(b) Variable Investment Options. (The variable investment options are the
subaccounts of Variable Annuity Account C. Each one invests in a specific
mutual fund.)
STEP 3: The subaccount(s) selected purchases shares of its corresponding fund.
II. The Income Phase
The contract offers several payment options. See "The Income Phase." In
general, you may:
> Receive income phase payments over a lifetime or a specified period;
> Receive income phase payments monthly, quarterly, semi-annually or annually;
> Select an option that provides a death benefit to beneficiaries; or
> Select fixed income phase payments or payments that vary based on the
performance of the variable investment options you select.
6
<PAGE>
Fee Table
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The tables and examples in this section show the fees your account may incur
while accumulating dollars under the contract (the Accumulation Phase). See
"The Income Phase" for fees that may apply after you begin receiving payments
under the contract. The fees shown below do not include premium taxes that may
be applicable.
Maximum Transaction Fees
Maximum Early Withdrawal Charge(1).....................5% of amount withdrawn
This is a deferred sales charge. It is a percentage of the amount withdrawn.
The percentage will be determined by the applicable early withdrawal charge
schedule in the "Fees" section. In certain cases, this charge may not apply to
a portion or all of your withdrawal. The early withdrawal charge reduces over
time.
Maximum Annual Maintenance Fee(1)......................................$30.00
Maximum Fees Deducted From the Subaccounts
Maximum Amounts(1)
(Daily deductions equal to the given percentage on an annual basis)
Mortality and Expense Risk Charge.......................................1.50%
Administrative Expense Charge(2)....................................... 0.25%
-----
Total Separate Account Expenses........................................ 1.75%
=====
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(1) These fees may be waived, reduced or eliminated in certain circumstances.
See "Fees."
(2) We only impose this charge under some contracts. See "Fees."
In This Section:
> Maximum Transaction Fees;
> Maximum Fees Deducted From the Subaccounts;
> Fees Deducted by the Funds; and
> Examples of Fee Deductions.
Also, see the "Fees" section for:
> Early Withdrawal Charge Schedules;
> How, When and Why Fees are Deducted;
> Reduction, Waiver and/or Elimination of Certain Fees; and
> Premium and Other Taxes.
See "The Income Phase" for:
> Fees during the income phase.
7
<PAGE>
Fees Deducted by the Funds
Using this Information. The following table shows the investment advisory fees
and other expenses charged annually by each fund. Fund fees are one factor that
impacts the value of a fund share. To learn about additional factors, refer to
the fund prospectus.
How Fees are Deducted. Fund fees are not deducted from account values. Instead,
fees are deducted from the value of the fund shares on a daily basis, which in
turn will affect the value of each subaccount on a daily basis. Except as noted
below, the following figures are a percentage of the average net assets of each
fund, and are based on figures for the year ended December 31, 1999.
<TABLE>
<CAPTION>
Fund Expense Table
Total Fund Net Fund
Annual Annual
Expenses Expenses
Investment Without Total After
Advisory Other Waivers or Waivers and Waivers or
Fees(1) Expenses Reductions Reductions Reductions
------------------- ---------- ------------ ------------- -----------
<S> <C> <C> <C> <C> <C>
Aetna Ascent VP(2) 0.60% 0.14% 0.74% 0.00% 0.74%
Aetna Balanced VP, Inc. 0.50% 0.09% 0.59% -- 0.59%
Aetna Bond VP 0.40% 0.09% 0.49% -- 0.49%
Aetna Crossroads VP(2) 0.60% 0.14% 0.74% 0.04% 0.70%
Aetna Growth VP(2) 0.60% 0.11% 0.71% 0.00% 0.71%
Aetna Growth and Income VP 0.50% 0.08% 0.58% -- 0.58%
Aetna High Yield VP(2) 0.65% 0.48% 1.13% 0.33% 0.80%
Aetna Index Plus Large Cap VP(2) 0.35% 0.10% 0.45% 0.00% 0.45%
Aetna Index Plus Mid Cap VP(2) 0.40% 0.40% 0.80% 0.20% 0.60%
Aetna Index Plus Small Cap VP(2) 0.40% 0.50% 0.90% 0.30% 0.60%
Aetna International VP(2) 0.85% 0.77% 1.62% 0.47% 1.15%
Aetna Legacy VP(2) 0.60% 0.15% 0.75% 0.10% 0.65%
Aetna Money Market VP 0.25% 0.09% 0.34% -- 0.34%
Aetna Real Estate Securities VP(2) 0.75% 0.74% 1.49% 0.54% 0.95%
Aetna Small Company VP(2) 0.75% 0.13% 0.88% 0.00% 0.88%
Aetna Technology VP(2)(3) 0.95% 0.25% 1.20% 0.05% 1.15%
Aetna Value Opportunity VP(2) 0.60% 0.13% 0.73% 0.00% 0.73%
AIM V.I. Capital Appreciation Fund 0.62% 0.11% 0.73% -- 0.73%
AIM V.I. Growth Fund 0.63% 0.10% 0.73% -- 0.73%
AIM V.I. Growth and Income Fund 0.61% 0.16% 0.77% -- 0.77%
AIM V.I. Value Fund 0.61% 0.15% 0.76% -- 0.76%
Calvert Social Balanced Portfolio(4) 0.70% 0.19% 0.89% 0.00% 0.89%
DEM[Reg TM] Equity Fund (5) 0.90% 2.10% 3.00% 1.75% 1.25%
Fidelity VIP Equity-Income Portfolio(6) 0.48% 0.09% 0.57% -- 0.57%
Fidelity VIP Growth Portfolio(6) 0.58% 0.08% 0.66% -- 0.66%
Fidelity VIP Overseas Portfolio(6) 0.73% 0.18% 0.91% -- 0.91%
Fidelity VIP II Contrafund[Reg TM] Portfolio(6) 0.58% 0.09% 0.67% -- 0.67%
Janus Aspen Aggressive Growth Portfolio(7) 0.65% 0.02% 0.67% 0.00% 0.67%
Janus Aspen Balanced Portfolio(7) 0.65% 0.02% 0.67% 0.00% 0.67%
Janus Aspen Flexible Income Portfolio(7) 0.65% 0.07% 0.72% 0.00% 0.72%
Janus Aspen Growth Portfolio(7) 0.65% 0.02% 0.67% 0.00% 0.67%
Janus Aspen Worldwide Growth Portfolio(7) 0.65% 0.05% 0.70% 0.00% 0.70%
Janus Twenty Fund (8) 0.65% 0.23% 0.88% 0.00% 0.88%
Lexington Natural Resources Trust 1.00% 0.33% 1.33% -- 1.33%
Oppenheimer Global Securities Fund/VA 0.67% 0.02% 0.69% -- 0.69%
Oppenheimer Strategic Bond Fund/VA 0.74% 0.04% 0.78% -- 0.78%
PPI MFS Capital Opportunities Portfolio(9) 0.65% 0.25% 0.90% 0.00% 0.90%
PPI MFS Emerging Equities Portfolio(9) 0.67% 0.13% 0.80% 0.00% 0.80%
PPI MFS Research Growth Portfolio(9) 0.70% 0.15% 0.85% 0.00% 0.85%
PPI Scudder International Growth Portfolio(9) 0.80% 0.20% 1.00% 0.00% 1.00%
PPI T. Rowe Price Growth Equity Portfolio(9) 0.60% 0.15% 0.75% 0.00% 0.75%
</TABLE>
8
<PAGE>
Footnotes to the "Fund Expense Table"
(1) Certain of the fund advisers reimburse the company for administrative costs
incurred in connection with administering the funds as variable funding
options under the contract. These reimbursements are generally paid out of
the Investment Advisory Fees and are not charged to investors. For the AIM
Funds, the reimbursements may be paid out of fund assets in an amount up to
0.25% annually. Any such reimbursements paid from the AIM Funds' assets are
included in the "Other Expenses" column.
(2) The investment adviser is contractually obligated through December 31, 2000
to waive all or a portion of its investment advisory fee and/or its
administrative services fee and/or to reimburse a portion of other expenses
in order to ensure that the fund's "Total Fund Annual Expenses Without
Waivers or Reductions" do not exceed the percentage reflected under "Net
Fund Annual Expenses After Waivers or Reductions."
(3) Aetna Technology VP commenced operations on May 1, 2000. Amounts reflected
in "Other Expenses" and "Total Fund Annual Expenses Without Waivers or
Reductions" are estimated amounts for the current fiscal year based on
expenses for comparable funds. Actual expenses may vary from those shown.
(4) "Other Expenses" reflect an indirect fee of 0.03% relating to an expense
offset arrangement with the portfolio's custodian. The amount shown under
Total Waivers and Reductions does not reflect a voluntary reduction of
fees paid indirectly. If this voluntary reduction of fees paid indirectly
was reflected, the amount shown under Net Fund Annual Expenses After
Waiver or Reductions would be 0.86%.
(5) The amount shown under "Other Expenses" includes a fee paid to the fund's
distributor for stockholder servicing and distribution services at an annual
rate of up to a total of 0.25% of average daily net assets. The fund's
investment adviser has contractually agreed to limit the total annual
operating expenses of the fund, solely attributable to the Institutional
Shares, to 1.25% of average daily net assets effective March 17, 2000 until
at least December 31, 2009. However, there is no guarantee the fund's
investment adviser will contract to limit the total annual operating
expenses of the fund attributable to the Institutional Shares beyond
December 31, 2009.
(6) A portion of the brokerage commissions that certain funds pay was used to
reduce fund expenses. In addition, through arrangements with certain funds',
or the investment adviser on behalf of certain funds', custodian, credits
realized as a result of uninvested cash balances were used to reduce a
portion of each applicable fund's expenses. These credits are not included
under Total Waivers and Reductions. If these credits had been included, the
amounts shown under Net Fund Annual Expenses After Waivers or Reductions
presented in the table would have been 0.56% for Fidelity VIP Equity-Income
Portfolio; 0.65% for Fidelity VIP Growth Portfolio; 0.87% for Fidelity VIP
Overseas Portfolio; and 0.65% for Fidelity VIP II Contrafund(R) Portfolio.
(7) Expenses are based upon expenses for the fiscal year ended December 31,
1999, restated to reflect a reduction in the management fee for Aggressive
Growth, Balanced, Growth and Worldwide Growth Portfolios. All expenses are
shown without the effect of expense offset arrangements.
(8) Investment Advisory Fees information has been restated to reflect a new
fee schedule effective January 31, 2000. Other Expenses were determined
based on net assets as of the fiscal year ended October 31, 1999.
(9) The investment adviser has agreed to reimburse the portfolios for expenses
and/or waive its fees, so that, through at least April 30, 2001, the
aggregate of each portfolio's expenses will not exceed the combined
investment advisory fees and other expenses shown under the Net Fund Annual
Expenses After Waivers or Reductions column above.
9
<PAGE>
Hypothetical Examples
Account Fees Incurred Over Time. The following hypothetical examples show the
fees paid over time if $1,000 is invested in a subaccount, assuming a 5% annual
return on the investment. For the purpose of these examples, we deducted the
maximum allowed under the contract for the following fees: mortality and
expense risk charge of 1.50% annually, an administrative expense charge of
0.25% annually, and a maintenance fee of $30.00 (converted to a percentage of
assets equal to 0.039%). The total annual fund expenses used are those shown in
the column "Total Annual Expenses Without Waivers or Reductions" in the Fund
Expense Table.
<TABLE>
<CAPTION>
> These examples are purely hypothetical.
> They should not be considered a
representation of past or future fees or
expected returns.
> Actual fees and/or returns may be more or
less than those shown in these examples.
EXAMPLE A EXAMPLE B
--------------------------------------- --------------------------------------
If you leave your entire account
If you withdraw your entire account value invested or if you select an income
value at the end of the periods shown, phase payment option at the end of the
you would pay the following fees, periods shown, you would pay the
including any applicable early following fees (no early withdrawal
withdrawal charge assessed:* charge is reflected):**
1 year 3 years 5 years 10 years 1 year 3 years 5 years 10 years
-------- --------- --------- ---------- -------- --------- --------- ---------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Aetna Ascent VP $77 $133 $191 $286 $26 $ 79 $135 $286
Aetna Balanced VP, Inc. $75 $128 $184 $272 $24 $ 74 $127 $272
Aetna Bond VP $74 $125 $179 $261 $23 $ 71 $122 $261
Aetna Crossroads VP $77 $133 $191 $286 $26 $ 79 $135 $286
Aetna Growth VP $77 $132 $190 $283 $25 $ 78 $133 $283
Aetna Growth and Income VP $75 $128 $183 $271 $24 $ 74 $126 $271
Aetna High Yield VP $81 $144 $209 $324 $29 $ 90 $154 $324
Aetna Index Plus Large Cap VP $74 $124 $177 $257 $23 $ 70 $120 $257
Aetna Index Plus Mid Cap VP $77 $134 $194 $292 $26 $ 81 $137 $292
Aetna Index Plus Small Cap VP $78 $137 $198 $302 $27 $ 84 $142 $302
Aetna International VP $85 $157 $231 $369 $34 $105 $177 $369
Aetna Legacy VP $77 $133 $191 $287 $26 $ 79 $135 $287
Aetna Money Market VP $73 $121 $172 $246 $22 $ 67 $114 $246
Aetna Real Estate Securities VP $84 $154 $226 $358 $33 $101 $171 $358
Aetna Small Company VP $78 $136 $198 $300 $27 $ 83 $141 $300
Aetna Technology VP $81 $145 $212 $331 $30 $ 92 $157 $331
Aetna Value Opportunity VP $77 $132 $191 $285 $26 $ 78 $134 $285
AIM V.I. Capital Appreciation Fund $77 $132 $191 $285 $26 $ 78 $134 $285
AIM V.I. Growth Fund $77 $132 $191 $285 $26 $ 78 $134 $285
AIM V.I. Growth and Income Fund $77 $133 $192 $289 $26 $ 80 $136 $289
AIM V.I. Value Fund $77 $133 $192 $288 $26 $ 79 $135 $288
Calvert Social Balanced Portfolio $78 $137 $198 $301 $27 $ 83 $142 $301
DEM[Reg TM] Equity Fund $98 $194 $291 $484 $48 $144 $241 $484
Fidelity VIP Equity-Income Portfolio $75 $128 $183 $270 $24 $ 74 $126 $270
Fidelity VIP Growth Portfolio $76 $130 $187 $279 $25 $ 76 $131 $279
Fidelity VIP Overseas Portfolio $78 $137 $199 $303 $27 $ 84 $143 $303
Fidelity VIP II Contrafund[Reg TM] Portfolio $76 $131 $188 $280 $25 $ 77 $131 $280
Janus Aspen Aggressive Growth Portfolio $76 $131 $188 $280 $25 $ 77 $131 $280
Janus Aspen Balanced Portfolio $76 $131 $188 $280 $25 $ 77 $131 $280
Janus Aspen Flexible Income Portfolio $77 $132 $190 $284 $25 $ 78 $133 $284
Janus Aspen Growth Portfolio $76 $131 $188 $280 $25 $ 77 $131 $280
Janus Aspen Worldwide Growth Portfolio $76 $131 $189 $282 $25 $ 78 $133 $282
Janus Twenty Fund $78 $136 $198 $300 $27 $ 83 $141 $300
Lexington Natural Resources Trust $82 $149 $218 $343 $31 $ 96 $163 $343
Oppenheimer Global Securities Fund/VA $76 $131 $189 $282 $25 $ 77 $132 $282
Oppenheimer Strategic Bond Fund/VA $77 $134 $193 $290 $26 $ 80 $136 $290
PPI MFS Capital Opportunities Portfolio $78 $137 $198 $302 $27 $ 84 $142 $302
PPI MFS Emerging Equities Portfolio $77 $134 $194 $292 $26 $ 81 $137 $292
PPI MFS Research Growth Portfolio $78 $136 $196 $297 $27 $ 82 $140 $297
PPI Scudder International Growth Portfolio $79 $140 $203 $312 $28 $ 86 $147 $312
PPI T. Rowe Price Growth Equity Portfolio $77 $133 $191 $287 $26 $ 79 $135 $287
</TABLE>
- -----------------
* This example reflects deduction of an early withdrawal charge calculated
using Early Withdrawal Charge Schedule I (based on completed purchase
payment periods.) Schedule I is listed in "Fees." Under that schedule, if
only one $1,000 payment was made as described above, fewer than 5 purchase
payments would have been completed at the end of years 1, 3 and 5, and the
5% charge would apply. At the end of the tenth account year, the early
withdrawal charge is waived regardless of the number of purchase payment
periods completed, and no early withdrawal charge would apply.
** Example B will not apply if during the income phase a nonlifetime payment
option is elected with variable payments and a lump-sum payment is
requested within a certain number of years as specified in the contract. In
that case, the lump-sum payment is treated as a withdrawal during the
accumulation phase and may be subject to an early withdrawal charge. (Refer
to Example A.)
10
<PAGE>
Condensed Financial Information
- --------------------------------------------------------------------------------
Understanding Condensed Financial Information. In Appendix VI, we provide
condensed financial information about the Variable Annuity Account C (the
separate account) subaccounts available under the contracts. These tables show
the values of the subaccounts over the past 10 years. For subaccounts that were
not available 10 years ago, we give a history from the date of first
availability.
Investment Options
- --------------------------------------------------------------------------------
The contract offers variable investment options and fixed interest options.
When we establish your account(s), the contract holder, or you if permitted by
the plan, instructs us to direct account dollars to any of the available
options.
Variable Investment Options. These options are called subaccounts. The
subaccounts are within Variable Annuity Account C (the separate account), a
separate account of the Company. Earnings on amounts invested in a subaccount
will vary depending upon the performance and fees of its underlying fund. You
do not invest directly in or hold shares of the funds.
> Fund Descriptions. We provide brief descriptions of the funds in Appendix V.
Please refer to the fund prospectuses for additional information. Fund
prospectuses may be obtained, free of charge, from our Home Office at the
address and telephone number listed in "Contract Overview", by accessing the
SEC's web site or by contacting the SEC's Public Reference Room.
Fixed Interest Options. For descriptions of the fixed interest options, see
Appendices I, II and III and the Guaranteed Accumulation Account prospectus.
- --------------------------------------------------------------------------------
Selecting Investment Options
o Choose options appropriate for you. Your Aetna representative can help you
evaluate which subaccounts or fixed interest options may be appropriate for
your financial goals.
o Understand the risks associated with the options you choose. Some
subaccounts invest in funds that are considered riskier than others. Funds
with additional risks are expected to have a value that rises and falls
more rapidly and to a greater degree than other funds. For example, funds
investing in foreign or international securities are subject to additional
risks not associated with domestic investments, and their performance may
vary accordingly. Also, funds using derivatives in their investment
strategy may be subject to additional risks.
o Be informed. Read this prospectus, the fund prospectuses, fixed interest
option appendices and the Guaranteed Accumulation Account prospectus.
- --------------------------------------------------------------------------------
Limits on Option Availability. Some subaccounts and fixed interest options may
not be available through certain contracts and plans or in some states. We may
add, withdraw or substitute investment options subject to the conditions in the
contract and in compliance with regulatory requirements.
11
<PAGE>
Limits on Number of Options Selected. Generally, the contract holder, or you if
permitted by the plan, may select no more than 18 investment options at one
time during the accumulation phase of your account. If you have an outstanding
loan (403(b) and some 401 or 403(a) plans only), you may currently make a total
of 18 cumulative selections over the life of the account. Each subaccount, the
Fixed Account, Fixed Plus Account, and each classification of the Guaranteed
Accumulation Account selected counts toward these limits. If you have a loan on
the account, each option counts toward the limit, even after the full value is
transferred to other options.
Limits Imposed by the Underlying Fund. Orders for the purchase of fund shares
may be subject to acceptance by the fund. We reserve the right to reject,
without prior notice, any allocation of purchase payment to a subaccount if the
subaccount's investment in the corresponding fund is not accepted by the fund
for any reason.
Additional Risks of Investing in the Funds.
Variable Funds. (Mixed and Shared Funding) Most of the funds described in this
prospectus are available only to insurance companies for their variable
contracts. Such funds are often referred to as "variable funds," and are used
for "mixed" and "shared" funding.
"Mixed funding" occurs when shares of a fund, which the subaccounts buy for
variable annuity contracts, are bought for variable life insurance contracts
issued by us or other insurance companies.
"Shared funding" occurs when shares of a fund, which the subaccounts buy for
variable annuity contracts, are also bought by other insurance companies for
their variable annuity contracts.
> Mixed--bought for annuities and life insurance
> Shared--bought by more than one company
Public Funds. The following funds, which the subaccounts buy for variable
annuity contracts, are also available to the general public:
> DEM[Reg TM] Equity (Institutional Shares)
> Janus Twenty Fund
See "Taxation--403(b) Plans" for a discussion of investing in one of the public
funds under a 403(b) annuity contract.
Possible Conflicts of Interest. With respect to the variable funds and the
public funds, it is possible that a conflict of interest may arise due to mixed
and shared funding, a change in law affecting the operations of variable
annuity separate accounts, differences in the voting instructions of the
contract holder and others maintaining a voting interest in the funds, or some
other reason. Such a conflict could adversely impact the value of a fund. For
example, if a conflict of interest occurred and one of the subaccounts withdrew
its investment in a fund, the fund may be forced to sell its securities at
disadvantageous prices, causing its share value to decrease. Each variable
fund's board of directors or trustees will monitor events in order to identify
any conflicts which may arise and to determine what action, if any, should be
taken to address such conflicts. With respect to both the public funds and the
variable funds, in the event of a conflict, the Company will take any steps
necessary to protect contract holders and annuitants maintaining a voting
interest in the funds, including the withdrawal of Variable Annuity Account C
from participation in the funds which are involved in the conflict.
12
<PAGE>
Transfers
- --------------------------------------------------------------------------------
Transfers Among Investment Options. During the accumulation phase and under
some contracts, the income phase, the contract holder, or you if permitted by
the plan, may transfer amounts among investment options. Transfers from fixed
interest options are restricted as outlined in Appendices I, II and III.
Transfers may be requested in writing, by telephone or, where available,
electronically. Transfers must be made in accordance with the terms of the
contract.
Value of Transferred Dollars. The value of amounts transferred in or out of
subaccounts will be based on the subaccount unit values next determined after
we receive your request in good order at our Home Office, or if you are
participating in the dollar cost averaging program, after your scheduled
transfer.
Telephone and Electronic Transfers: Security Measures. To prevent fraudulent
use of telephone or electronic transactions (including, but not limited to,
internet transactions), we have established security procedures. These include
recording calls on our toll-free telephone lines and requiring use of a
personal identification number (PIN) to execute transactions. You are
responsible for keeping your PIN and account information confidential. If we
fail to follow reasonable security procedures, we may be liable for losses due
to unauthorized or fraudulent telephone or other electronic transactions. We
are not liable for losses resulting from following telephone or electronic
instructions we believe to be genuine. If a loss occurs when we rely on such
instructions, you will bear the loss.
Limits on Frequent Transfers. The contracts are not designed to serve as
vehicles for frequent trading in response to short-term fluctuations in the
market. Such frequent trading can disrupt management of a fund and raise its
expenses. This in turn can have an adverse effect on fund performance.
Accordingly, organizations or individuals that use market-timing investment
strategies and make frequent transfers should not purchase the contracts.
We reserve the right to restrict, in our sole discretion and without prior
notice, transfers initiated by a market-timing organization or individual or
other party authorized to give transfer instructions on behalf of multiple
contract holders or participants. Such restrictions could include:
(1) Not accepting transfer instructions from an agent acting on behalf of more
than one contract holder or participant; and
(2) Not accepting preauthorized transfer forms from market timers or other
entities acting on behalf of more than one contract holder or participant
at a time.
We further reserve the right to impose, without prior notice, restrictions on
any transfers that we determine, in our sole discretion, will disadvantage or
potentially hurt the rights or interests of other contract holders or
participants.
The Dollar Cost Averaging Program. Certain contracts allow you to participate
in our Dollar Cost Averaging Program. There is no additional charge for this
service. Dollar cost averaging is a system for investing that buys fixed dollar
amounts of an investment at regular intervals, regardless of price. Our program
transfers, at regular intervals, a fixed dollar amount to one or more
subaccounts that you select. Dollar cost averaging is not permitted into the
Lexington Natural Resources Trust subaccount. Dollar cost averaging neither
ensures a profit nor guarantees against loss in a declining market. You should
consider your financial ability to continue purchases through periods of low
price levels. For additional information about this program, contact your local
representative or call the Company at the number listed in "Contract
Overview--Questions."
13
<PAGE>
Contract Purchase and Participation
- --------------------------------------------------------------------------------
Contracts Available for Purchase. The contracts available for purchase are
group or individual deferred annuity contracts that the Company offers in
connection with plans established by eligible organizations under Tax Code
sections 401(a), 401(k), 403(a), 403(b) and 457.
ERISA Notification. Some plans under Sections 401, 403(a) and 403(b) are
subject to Title I of the Employee Retirement Income Security Act of 1974
(ERISA), as amended. The contract holder must notify the Company whether Title
I of ERISA applies to the plan.
Purchasing the Contract.
1. The contract holder submits the required forms and application to the
Company.
2. We approve the forms and issue a contract to the contract holder.
Participating in the Contract.
1. We provide you with enrollment materials for completion and return to us
(occasionally enrollment is conducted by someone unaffiliated with us who
is assisting the contract holder).
2. If your enrollment materials are complete and in good order, we establish
one or more accounts for you. Under certain plans we establish an employee
account for contributions from your salary and an employer account for
employer contributions.
Acceptance or Rejection. We must accept or reject an application or your
enrollment materials within two business days of receipt. If the forms are
incomplete, we may hold any forms and accompanying purchase payments for five
business days, unless you consent to our holding them longer. Under limited
circumstances, we may also agree, for a particular plan, to hold purchase
payments for longer periods with the permission of the contract holder. If we
agree to do this, we will deposit the purchase payments in the Aetna Money
Market VP subaccount until the forms are completed (or for a maximum of 105
days). If we reject the application or enrollment, we will return the forms and
any purchase payments.
14
<PAGE>
Methods of Purchase Payment. The contract may allow one or more of the
following purchase payment methods:
> Lump-sum payments--A one-time payment to your account in the form of a
transfer from a previous plan; and/or
> Installment payments--More than one payment made over time to your account.
The plan and the contract may have certain rules or restrictions that apply to
use of these two methods. For example, we may require that installment payments
meet certain minimums. Under some contracts, we will place the different types
of payments in distinct accounts, where each account will have its own early
withdrawal charge schedule. See "Fees--Early Withdrawal Charge Schedules."
Allocation of Purchase Payments. The contract holder or you, if the contract
holder permits, directs us to allocate initial contributions to the investment
options available under the plan. Generally, you will specify this information
on your enrollment materials. After your enrollment, changes to allocations for
future purchase payments or transfer of existing balances among investment
options may be requested in writing and, where available, by telephone or
electronically. Allocations must be in whole percentages, and there may be
limitations on the number of investment options that can be selected. See
"Investment Options" and "Transfers."
Transfer Credits. The Company provides a transfer credit in some cases on
transferred assets, as defined by the Company, subject to certain conditions
and state approvals. This benefit is provided on a nondiscriminatory basis. If
a transfer credit is due under the contract, you will be provided with
additional information specific to the contract.
Tax Code Restrictions. The Tax Code places some limitations on contributions to
your account. See "Taxation."
Contract Ownership and Rights
- --------------------------------------------------------------------------------
Who Owns the Contract? The contract holder. This is the person or entity to
whom we issue the contract.
Who Owns Money Accumulated Under the Contract?
> Under 457 Plans. The Tax Code requires that 457 plan assets of governmental
employers be held in trust for the exclusive benefit of you and your
beneficiaries. An annuity contract satisfies the trust requirement of the Tax
Code.
> Under 403(b) Plans. Under the contract, we may establish one or more accounts
for you. Generally, we establish an employee account to receive salary
reduction and rollover amounts and an employer account to receive employer
contributions. You have the right to the value of your employee account and
any employer account to the extent you are vested as interpreted by the
contract holder.
15
<PAGE>
> Under 401(a)/401(k) or 403(a) Plans. Under the contract, we may establish one
or more accounts for you. Generally, we establish an employee account to
receive salary reduction and rollover amounts and an employer account to
receive employer contributions. You have the right to the value of your
employee account and any employer account to the extent that you are vested
under the plan as interpreted by the contract holder.
Who Holds Rights under the Contract?
> Under all contracts, except group contracts issued through a voluntary 403(b)
plan, the contract holder holds all rights under the contract. The contract
holder may permit you to exercise some of those rights. For example, the
contract holder may allow you to choose investment options.
> If you participate in a group or individual contract through a voluntary
403(b) plan, you hold all rights under the contract.
Right to Cancel
- --------------------------------------------------------------------------------
When and How to Cancel. If the contract holder chooses to cancel a contract, we
must receive the contract and a written notice of cancellation within 10 days
(or a longer period if required by state law) after the contract holder's
receipt of the contract.
If you wish to cancel participation in the contract and are allowed to do so
under the contract and the plan, you must send the document evidencing your
participation and a written notice of cancellation to the Company within 10
days after you receive confirmation of your participation in the contract.
Refunds. We will produce a refund not later than seven days after we receive
the required documents and written notice in good order at our Home Office. The
refund will equal amounts contributed to the contract or account(s), as
applicable, plus any earnings or less any losses attributable to the investment
options in which amounts were invested. In certain states, we are required to
refund contributions. When a refund of contributions is not required, the
investor bears any investment risk.
16
<PAGE>
Fees
- --------------------------------------------------------------------------------
The following repeats and adds to information provided in the "Fee Table"
section. Please review both this section and the "Fee Table" section for
information on fees.
I. Transaction Fees
Early Withdrawal Charge
Withdrawals of all or a portion of your account value may be subject to a
charge.
Purpose: This is a deferred sales charge. It reimburses us for some of the
sales and administrative expenses associated with the contract. If our expenses
are greater than the amount we collect for the early withdrawal charge, we may
use any of our corporate assets, including potential profit that may arise from
the mortality and expense risk charges, to make up the difference.
Amount: This charge is a percentage of the amount that you withdraw from the
subaccounts, the Fixed Account and the Guaranteed Accumulation Account. We do
not deduct an early withdrawal charge from amounts that you withdraw from the
Fixed Plus Account. The percentage is determined by the early withdrawal charge
schedule that applies to your account. Some of these schedules are listed
below. The charge will never be more than 8.5% of your total purchase payments
to the account, or under some contracts, the maximum permitted by the rules of
the National Association of Securities Dealers.
Early Withdrawal Charge Schedules. You may determine which schedule applies to
you by consulting your certificate or the contract (held by the contract
holder).
Schedule I. This is the maximum early withdrawal charge schedule under the
contracts. It grades down to zero over a 10-year period, as shown below. Some
contracts have schedules that grade down to zero over fewer than 10 years.
Each contract will specify whether a schedule is based on one of the following:
(1) The number of years since the account was established; (2) the number of
years since the contract was established; or (3) the number of completed
purchase payment periods.
Unless the contract provides otherwise, the same schedule applies to
installment purchase payments (ongoing contributions) and to single purchase
payments (rollovers, exchanges or other one-time contributions).
Schedule I
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------
Purchase Payment or Contribution
Periods or, Contract Years or Account
Years Completed (depending upon
the contract) Early Withdrawal Charge
- --------------------------------------------- ------------------------
<S> <C>
Fewer than 5 5%
5 or more but fewer than 7 4%
7 or more but fewer than 9 3%
9 or more but fewer than 10 2%
more than 10 0%
- --------------------------------------------------------------------------------
</TABLE>
Types of Fees
There are three types of fees which you may incur under the contract:
> Transaction Fees
o Early Withdrawal Charge
o Annual Maintenance Fee
> Fees Deducted from the Subaccounts
o Mortality and Expense Risk Charge
o Administrative Expense Charge
> Fees Deducted by the Funds
o Investment Advisory Fees
o Other Expenses
Terms to Understand in
Schedules I and II
> Account Year--a 12-month period measured from the date we establish your
account, or measured from any anniversary of that date.
> Contract Year--a 12-month period measured from the date we establish the
contract, or measured from any anniversary of that date.
> Purchase Payment Period (also called Contribution Period under some
contracts) (for installment payments under some contracts)--the period of
time it takes to complete the number of installment payments expected to be
made to your account over a year. For example, if your payment frequency is
monthly, a payment period is completed after 12 payments are made. If only 11
payments are made, the payment period is not completed until the twelfth
payment is made. At any given time, the number of payment periods completed
cannot exceed the number of account years completed, regardless of the number
of payments made.
17
<PAGE>
Schedule II. For contracts where we establish distinct accounts for installment
purchase payments and single purchase payments (defined above), Schedule I
applies to installment payment accounts and Schedule II applies to single
payment accounts. As shown below, Schedule II grades down to zero over a
nine-year period as account years are completed.
Schedule II
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------
Account Years Completed Early Withdrawal Charge
- --------------------------------------- ------------------------
<S> <C>
Fewer than 5 5%
5 or more but fewer than 6 4%
6 or more but fewer than 7 3%
7 or more but fewer than 8 2%
8 or more but fewer than 9 1%
9 or more 0%
- --------------------------------------------------------------------------------
</TABLE>
Early Withdrawal Charge Waivers under all Contracts. These apply to all
contracts. Also read the following two subsections regarding additional
waivers, reduction or elimination of the charge.
This charge is waived for portions of a withdrawal that are:
> Used to provide income payments during the income phase;
> Paid because of your death before income payments begin;
> Paid where your account value is $5,000 or less ($3,500 under some contracts
and $1,999 for some contracts issued in New York), (or, if applicable, as
otherwise allowed by the plan for lump-sum cashout without participant's
consent) and no part of the account has been taken as a withdrawal, used to
provide income payments or taken as a loan within the prior 12 months;
> Taken because of the election of a systematic distribution option. See
"Systematic Distribution Options"; or
> Taken on or after the tenth anniversary of the effective date of the account.
Early Withdrawal Charge Waivers under Certain Contracts. To find out which
waivers apply to the contract issued in connection with your plan, consult the
certificate or the contract (held by the contract holder).
This charge is waived for portions of a withdrawal that are:
> Taken under accounts with an early withdrawal charge schedule based on
completed purchase payment periods when you are at least age 59 1/2 and have
completed at least nine purchase payment periods;
> Taken after you have separated from service with your employer (under
certain contracts, the employer must provide documentation of separation to
the Company);
> Used to purchase an Aetna single premium immediate annuity or other contracts
allowed by the Company, under the condition that you do not cancel the new
contract and obtain a refund during the cancellation period (if you cancel
the new contract, we will reinstate the account under the old contract and
the amount returned to the account from the new contract may then be
withdrawn, subject to any early withdrawal charge that would have applied at
the time the new contract was established);
> Depending upon the plan, due to financial hardship or hardship resulting from
an unforeseeable emergency, as defined by the Tax Code and
18
<PAGE>
regulations thereunder or an in-service distribution permitted by the plan
when certified by the employer;
> From contracts used with plans under section 401(a)/401(k), section 403(a) or
section 403(b) of the Tax Code, if the withdrawal is not more than 10% of
your account value and is the first partial withdrawal in a calendar year (to
qualify for this waiver you must be between the ages of 59 1/2 and 70 1/2 and
cannot have elected the systematic withdrawal option; any outstanding loans
are not included in the account value when calculating the 10% amount; and
this waiver does not apply to full withdrawals or to a withdrawal due to a
loan default);
> Withdrawn due to the transfer of your account value to another of the
retirement products the Company offers under the contract holder's plan,
subject to various conditions agreed to by the contract holder and the
Company in writing;
> Made because the Company terminated the account under the circumstances
described in "Other Topics--Account Termination"; or
> Withdrawn for a transfer as provided under Internal Revenue Service Ruling
90-24 to a Code section 403(b)(7) custodial account sponsored by the Company.
Reduction, Waiver or Elimination. In addition to the specific waivers described
above, we may reduce, waive or eliminate the early withdrawal charge for a
particular plan. Any such reduction will reflect the differences we expect in
distribution costs or services meant to be defrayed by this charge. Factors we
consider for a reduction include, but are not limited to, the following:
> The number of participants under the plan;
> The expected level of assets or cash flow under the plan;
> Our agent's involvement in sales activities;
> Our sales-related expenses;
> Distribution provisions under the plan;
> The plan's purchase of one or more other variable annuity contracts from us
and the features of those contracts;
> The level of employer involvement in determining eligibility for
distributions under the contract;
> Our assessment of financial risk to the Company relating to withdrawals; and
> Whether the contract results from the exchange of another contract issued by
the Company to the same plan sponsor.
We will not reduce the early withdrawal charge in a manner that is unfairly
discriminatory against any person.
We may also apply different early withdrawal charge provisions in contracts
issued to certain employer groups or associations which have negotiated the
contract terms on behalf of their employees. We will offer any resulting early
withdrawal charge uniformly to all employees in the group.
19
<PAGE>
Reduction for Certain New York Contracts. For master 403(b) plan contracts
issued after July 29, 1993 in New York, in addition to waivers or reductions
that we grant, the state of New York requires a reduced early withdrawal charge
schedule for withdrawals from the Guaranteed Accumulation Account. The schedule
grades down over a seven-year period as account years are completed, as shown
in the table below. This same schedule is used for withdrawals from the
subaccounts, Fixed Account or the Guaranteed Accumulation Account for contracts
issued in New York on or after March 7, 2000 under contract form G-CDA-99(NY).
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------
Completed Account Years Early Withdrawal Charge
- --------------------------------------- ------------------------
<S> <C>
Fewer than 3 5%
3 or more but fewer than 4 4%
4 or more but fewer than 5 3%
5 or more but fewer than 6 2%
6 or more but fewer than 7 1%
7 or more 0%
- --------------------------------------------------------------------------------
</TABLE>
Maintenance Fee
Maximum Amount. $30.00
When/How. For those plans that have a maintenance fee, each year during the
accumulation phase we deduct this fee on your account anniversary and, in some
cases, at the time of full withdrawal. It is deducted on a pro rata basis from
your account value invested in the subaccounts and the fixed interest options.
We do not deduct this fee from a single purchase payment account. Under some
plans we deduct the maintenance fee from both employer and employee accounts.
Under some installment plans, your employer elects whether the fee is deducted
from the employee account, employer account, or a portion from each. The
Company may send a bill to your employer at or prior to such deduction.
Purpose. This fee helps defray the administrative expenses we incur in
establishing and maintaining your account.
Reduction or elimination. When a plan meets certain criteria, we may reduce,
waive or eliminate the maintenance fee. Factors we consider reflect differences
in our level of administrative costs and services, such as:
> The size, type and nature of the group to which a contract is issued;
> The expected level of assets under the plan (under some contracts, we may
aggregate accounts under different contracts issued by the Company to the
same contract holder);
> The anticipated level of administrative expenses, such as billing for
payments, producing periodic reports, providing for the direct payment of
account charges rather than having them deducted from account values, and any
other factors pertaining to the level and expense of administrative services
we will provide; and
> The number of eligible participants and the program's participation rate.
Due to factors on which the maintenance fee is based, it is possible that it
may increase or decrease from year to year as the characteristics of the group
changes.
We will not unfairly discriminate against any group if we reduce or eliminate
the maintenance fee. We will make any reduction according to our own rules in
effect at the time we approve the application for a contract. We reserve the
right to change these rules from time to time.
20
<PAGE>
II. Fees Deducted from the Subaccounts
Mortality and Expense Risk Charge
Maximum Amount. 1.50% annually of your account value invested in the
subaccounts during the accumulation phase; 1.25% annually of your account value
invested in the subaccount during the income phase. We may charge a different
fee for different funds (but not beyond the maximum amount). See your
certificate or the contract (held by the contract holder).
When/How. This fee is deducted daily from the subaccounts. We do not deduct
this from any fixed interest option.
Purpose. This fee compensates us for the mortality and expense risks we assume
under the contracts.
> The mortality risks are those risks associated with our promise to make
lifetime payments based on annuity rates specified in the contracts and our
funding of the death benefits and other payments we make to owners or
beneficiaries of the accounts.
> The expense risk is the risk that the actual expenses we incur under the
contracts will exceed the maximum costs that we can charge.
If the amount we deduct for this fee is not enough to cover our mortality costs
and expenses under the contracts, we will bear the loss. We may use any excess
to recover distribution costs relating to the contract and as a source of
profit. We expect to make a profit from this fee.
Reduction. We may reduce the mortality and expense risk charge from the maximum
when the plan meets certain criteria and we agree to the reduction with the
contract holder in writing. Some contracts have a reduced mortality and expense
risk charge only during the accumulation phase of the account which then
increases during the income phase (but not beyond the maximum amount). Any
reduction will reflect differences in expenses for administration based on such
factors as:
> The expected level of assets under the plan (under some contracts, we may
aggregate accounts under different contracts issued by the Company to the
same contract holder);
> The size of the prospective group, projected annual number of eligible
participants and the program's participation rate;
> The plan design (for example, the plan may favor stability of invested assets
and limit the conditions for withdrawals, loans and available investment
options, which in turn lowers administrative expenses);
> The frequency, consistency and method of submitting payments and loan
repayments;
> The method and extent of onsite services we provide and the contract holder's
involvement in services such as enrollment and ongoing participant services;
> The contract holder's support and involvement in the communication,
enrollment, participant education and other administrative services;
> The projected frequency of distributions; and
> The type and level of other factors that affect the overall administrative
expense.
21
<PAGE>
We will determine any reduction of mortality and expense risk on a basis that
is not unfairly discriminatory according to our rules in effect at the time a
contract application is approved. We reserve the right to change these rules
from time to time. Under some contracts we will reassess and increase or
decrease this fee each year on the anniversary of the date the contract was
established. However, the charge that may apply to a given participant upon
entry into the income phase will remain fixed while the participant remains in
that phase.
Administrative Expense Charge
Maximum Amount. 0.25% annually of your account value invested in the
subaccounts.
When/How. For all participants who became covered under a contract on or after
November 5, 1984, we reserve the right to charge an administrative expense
charge of up to 0.25% annually of your account value invested in the
subaccount. We are currently deducting this charge under the contracts issued
to some plans. If charged, this fee is deducted daily from the subaccounts. We
do not deduct this from any fixed interest option. This fee may be assessed
during the accumulation phase and/or the income phase. If we are currently
imposing this fee under the contract issued in connection with your plan when
you enter the income phase, the fee will apply to you during the entire income
phase.
Purpose. This fee helps defray our administrative expenses that cannot be
covered by the mortality and expense charge described above. The fee is not
intended to exceed our average expected cost of administering the contracts. We
do not expect to make a profit from this fee.
Reduction. Under some contracts, if we charge the administrative expense
charge, we may reduce it from the maximum when the plan meets certain criteria
and we agree to the reduction with the contract holder, in writing. The level
of the fee may be reassessed and increased or decreased at each contract
anniversary as the characteristics of the group change.
III. Fund Expenses
Maximum Amount. Each fund determines its own advisory fees and expenses. For a
list of fund fees see "Fee Table." The fees are described in more detail in
each fund prospectus.
When/How. Fund fees are not deducted from your account. Fund advisory fees and
expenses are reflected in the daily value of the fund shares which will, in
turn, affect the daily value of each subaccount.
Purpose. These amounts help to pay the fund's investment advisor and operating
expenses.
IV. Premium and Other Taxes
Maximum Amount. Some states and municipalities charge a premium tax on
annuities. These taxes currently range from 0% to 4%, depending upon the
jurisdiction.
When/How. We reserve the right to deduct premium taxes from your account value
or from payments to the account at any time, but not before there is a tax
liability under state law. Our current practice is to deduct premium taxes at
the time of a full withdrawal or the commencement of income phase payments.
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<PAGE>
We will not deduct any municipal premium tax of 1% or less, but we reserve the
right to reflect such an expense in our annuity purchase rates.
In addition, the Company reserves the right to assess a charge for any federal
taxes due against the separate account. See "Taxation."
Your Account Value
- --------------------------------------------------------------------------------
During the accumulation phase, your account value at any given time equals:
> Account dollars directed to the fixed interest options, including interest
earnings to date
> Less any deductions from the fixed interest options (e.g. withdrawals, fees)
> Plus the current dollar value of amounts invested in the subaccounts.
Subaccount Accumulation Units. When a fund is selected as an investment option,
your account dollars invest in "accumulation units" of the Variable Annuity
Account C subaccount corresponding to that fund. The subaccount invests
directly in the fund shares. The value of your interests in a subaccount is
expressed as the number of accumulation units you hold multiplied by an
"Accumulation Unit Value," as described below, for each unit.
Accumulation Unit Value (AUV). The value of each accumulation unit in a
subaccount is called the accumulation unit value or AUV. The value of
accumulation units vary daily in relation to the underlying fund's investment
performance. The value also reflects deductions for fund fees and expenses, the
mortality and expense risk charge, and the administrative expense charge (if
any). We discuss these deductions in more detail in "Fee Table" and "Fees."
Valuation. We determine the AUV every business day after the close of the New
York Stock Exchange (Exchange). At that time, we calculate the current AUV by
multiplying the AUV last calculated by the "net investment factor" of the
subaccount. The net investment factor measures the investment performance of
the subaccount from one valuation to the next.
Current AUV = Prior AUV x Net Investment Factor
Net Investment Factor. The net investment factor for a subaccount between two
consecutive valuations equals the sum of 1.0000 plus the net investment rate.
Net Investment Rate. The net investment rate is computed according to a formula
that is equivalent to the following:
> The net assets of the fund held by the subaccount as of the current
valuation, minus
> The net assets of the fund held by the subaccount at the preceding valuation,
plus or minus
> Taxes or provisions for taxes, if any, due to subaccount operations (with any
federal income tax liability offset by foreign tax credits to the extent
allowed)
> Divided by the total value of the subaccount's units at the preceding
valuation
> Minus a daily deduction for the mortality and expense risk charge, the
administrative expense charge, if any, and any other fees deducted from
investments in the separate account (such as guaranty charges for the Aetna
GET Fund). See "Fees."
The net investment rate may be either positive or negative.
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<PAGE>
Hypothetical Illustration. As a hypothetical illustration, assume that an
investor contributes $5,000 to his account and directs us to invest $3,000 in
Fund A and $2,000 in Fund B. After receiving the contribution and following the
next close of business of the New York Stock Exchange, the applicable AUV's are
$10 for Subaccount A, and $25 for Subaccount B. The investor's account is
credited with 300 accumulation units of subaccount A, and 80 accumulation units
of subaccount B.
Step 1: An investor contributes $5,000.
---------------------
$5,000 contribution
---------------------
Step 1
---------------------------------------------------
Aetna Life Insurance and Annuity Company
---------------------------------------------------
Step 2
---------------------------------------------------
Variable Annuity Account C
---------------------------------------------------
Subaccount A Subaccount B Etc
300 80
accumulation accumulation
units units
---------------------------------------------------
Step 3
---------- -----------
Fund A Fund B
---------- -----------
Step 2:
A. He directs us to invest $3,000
in Fund A. His dollars purchase
300 accumulation units of
Subaccount A ($3,000 divided by
the current
$10 AUV).
B. He directs us to invest $2,000
in Fund B. His dollars purchase
80 accumulation units of
Subaccount B ($2,000 divided by
the current
$25 AUV).
Step 3: The separate account then
purchases shares of the applicable
funds at the current market value
(net asset value or NAV).
The fund's subsequent investment performance, expenses and charges, and the
daily charges deducted from the subaccount, will cause the AUV to move up or
down on a daily basis.
24
<PAGE>
Purchase Payments to Your Account. If all or a portion of initial purchase
payments are directed to the subaccounts, they will purchase subaccount
accumulation units at the AUV next computed after our acceptance of the
applicable application or enrollment forms, as described in "Contract Purchase
and Participation." Subsequent purchase payments or transfers directed to the
subaccounts that we receive in good order by the close of business of the New
York Stock Exchange will purchase subaccount accumulation units at the AUV
computed after the close of the Exchange on that day. The value of subaccounts
may vary day to day.
Withdrawals
- --------------------------------------------------------------------------------
Making a Withdrawal. Subject to limitations on withdrawals from the fixed
interest options and other restrictions (see "Withdrawal Restrictions" below),
the contract holder, or you if permitted by the plan, may withdraw all or a
portion of your account value at any time during the accumulation phase.
Steps for Making a Withdrawal. The contract holder, or you if permitted by the
plan, must:
> Select the withdrawal amount
o Full Withdrawal: You will receive, reduced by any required withholding
tax, your account value allocated to the subaccounts, the Guaranteed
Accumulation Account (plus or minus any applicable market value
adjustment) and the Fixed Account, minus any applicable early withdrawal
charge, plus the amount available for withdrawal from the Fixed Plus
Account.
o Partial Withdrawal (Percentage or Specified Dollar Amount): You will
receive, reduced by any required withholding tax, the amount you specify,
subject to the value available in your account. However, the amount
actually withdrawn from your account will be adjusted by any applicable
early withdrawal charge for amounts withdrawn from the subaccounts, the
Guaranteed Accumulation Account or the Fixed Account, and any positive or
negative market value adjustments for amounts withdrawn from the
Guaranteed Accumulation Account. The amount available from the Fixed Plus
Account may be limited.
For a description of limitations on withdrawals from the Fixed Plus
Account, see Appendix III.
> Select investment options. If this is not specified, we will withdraw dollars
proportionally from each investment option in which you have an account
value.
> Properly complete a disbursement form and submit it to the Home Office.
Calculation of Your Withdrawal. We determine your account value every normal
business day after the close of the New York Stock Exchange. We pay withdrawal
amounts based on your account value either:
(1) As of the next valuation after we receive a request for withdrawal in good
order at our Home Office, or
(2) On such later date as specified on the disbursement form.
Delivery of Payment. Payments for withdrawal requests will be made in
accordance with SEC requirements. Normally, we will send your payment not later
than seven calendar days following our receipt of your disbursement form in
good order.
Taxes, Fees and Deductions
Amounts withdrawn may be subject to one or more of the following:
> Early Withdrawal Charge. See "Fees--Early Withdrawal Charge";
> Maintenance Fee. See "Fees--Maintenance Fee";
> Market Value Adjustment. See Appendix I;
> Tax Penalty. See "Taxation"; and/or
> Tax Withholding. See "Taxation".
To determine which may apply, refer to the appropriate sections of this
prospectus, contact your Aetna representative or call the Company at the number
listed in "Contract Overview--Questions."
25
<PAGE>
Reinvestment Privilege. (not applicable to contracts under 457 plans). Some
contracts allow one-time use of a reinvestment privilege. Within 30 days after
a full withdrawal, if allowed by law and the contract, you may elect to
reinvest all or a portion of the proceeds. We must receive reinvested amounts
within 60 days of the withdrawal. We will credit the account for the amount
reinvested based on the subaccount values next computed following our receipt
of your request and the amount to be reinvested. We will credit the amount
reinvested proportionally for maintenance fees and early withdrawal charges
imposed at the time of withdrawal. We will deduct from the amounts reinvested
any maintenance fee which fell due after the withdrawal and before the
reinvestment. We will reinvest in the same investment options and proportions
in place at the time of withdrawal. If you withdraw amounts from a series of
the Aetna GET Fund and then elect to reinvest them, we will reinvest them in a
GET Fund series that is then accepting deposits, if one is available. If one is
not available, we will reallocate your GET amounts among other investment
options in which you invested, on a pro rata basis. Special rules apply to
reinvestments of amounts withdrawn from the Guaranteed Accumulation Account.
See Appendix I. Seek competent advice regarding the tax consequences associated
with reinvestment.
Withdrawal Restrictions. Some plans may have other limits on withdrawals, other
than or in addition to those listed below.
> Section 403(b)(11) of the Tax Code generally prohibits withdrawal under
403(b) contracts prior to your death, disability, attainment of age 59 1/2,
separation from service, or financial hardship of the following:
(1) Salary reduction contributions made after December 31, 1988; and
(2) Earnings on those contributions and earnings on amounts held before
1989 and credited after December 31, 1988.
> 401(k) plans generally prohibit withdrawal of salary reduction contributions
and associated earnings prior to your death, disability, attainment of age
59 1/2, separation from service, or financial hardship. Income attributable
to salary reduction contributions and credited on or after January 1, 1989
may not be distributed in the case of hardship.
> The contract may require that the contract holder certify that you are
eligible for the distribution.
> If you are married and covered by an ERISA plan, the contract holder must
provide certification that Retirement Equity Act requirements have been met.
> Participants in Ball State University Alternate Pension Plan--The portion of
your account value attributable to employer contributions and applicable
earnings may not be withdrawn unless your employment is terminated with Ball
State University or you have died, retired or separated from service. The
contract holder may withdraw the employer account value, and you may transfer
employer account values pursuant to an IRS Revenue Ruling 90-24 transfer,
without regard to this restriction. No early withdrawal charge will apply to
the first 20% of the employer account value transferred via a 90-24 transfer
in a calendar year. This waiver does not apply to a 90-24 transfer of the
full employer account value.
> Participants in Texas Optional Retirement Program--You may not receive any
distribution before retirement, except upon becoming disabled, as defined in
the Tax Code or terminating employment with Texas public institutions of
higher learning. Conditions under which you may exercise the right to
withdraw and the right to advance the date on which an income phase payment
option is to begin are limited. These restrictions are imposed by
reason of the Texas Attorney General's interpretation of Texas law.
26
<PAGE>
Loans
- --------------------------------------------------------------------------------
Availability. If allowed by the contract and the plan, you may take out a loan
from your account value during the accumulation phase. Some contracts restrict
loans from your employer account. Loans are only allowed from amounts allocated
to certain subaccounts and fixed interest options. Additional restrictions may
apply under the Tax Code or due to our administrative practices.
Requests. If you are eligible to obtain a loan, you may request one by properly
completing the loan request form and submitting it to our Home Office. Read the
terms of the loan agreement before submitting any request.
Systematic Distribution Options
- --------------------------------------------------------------------------------
Availability of Systematic Distribution Options. To exercise one of these
options, the account value must meet any minimum dollar amount and age criteria
applicable to that option. To determine what Systematic Distribution Options
are available, check with the contract holder or the Company. The Company
reserves the right to discontinue the availability of one or all of the
Systematic Distribution Options at any time, and/or to change the terms for
future elections.
Systematic Distribution Options currently available under the contract include
the following:
> SWO--Systematic Withdrawal Option. SWO is a series of partial withdrawals
from your account based on a payment method you select. It is designed for
those who want a periodic income while retaining accumulation phase
investment flexibility for amounts accumulated under the account. (This
option may not be available if you have an outstanding loan.)
> ECO--Estate Conservation Option. ECO also allows you to maintain the account
in the accumulation phase and provides periodic payments designed to meet the
Tax Code's minimum distribution requirement.
Under ECO, the Company calculates the minimum distribution amount required
by law at age 70 1/2 (for certain plans, 70 1/2 or retirement, if later) and
pays you that amount once a year.
For certain contracts issued in the state of New York, no market value
adjustment is imposed on ECO withdrawals from the Guaranteed Accumulation
Account.
> Other Systematic Distribution Options. Other Systematic Distribution Options
may be available from time to time. Additional information relating to any of
the Systematic Distribution Options may be obtained from your local
representative or from the Company's Home Office.
Electing a Systematic Distribution Option. The contract holder, or you if
permitted by the plan, makes the election of a Systematic Distribution Option.
For some contracts, the contract holder must provide the Company with
certification that the distribution is in accordance with the terms of the
plan.
Features of a Systematic Distribution Option
If available under your plan, a Systematic Distribution Option allows you to
receive regular payments from your account without moving into the income
phase. By remaining in the accumulation phase, you retain certain rights and
investment flexibility not available during the income phase. Because the
account remains in the accumulation phase, all accumulation phase charges
continue to apply.
27
<PAGE>
During the Income Phase
This section provides information about the accumulation phase. For death
benefit information applicable to the income phase, see "The Income Phase."
Terminating a Systematic Distribution Option. Once you elect a Systematic
Distribution Option, except for accounts that are part of 457 plan contracts,
you may revoke it at any time through a written request to our Home Office.
Once revoked, an option may not be elected again, nor may any other Systematic
Distribution Option be elected, unless the Tax Code permits it.
Tax Consequences. Withdrawals received through these options and revocations of
elections may have tax consequences. See "Taxation."
Death Benefit
- --------------------------------------------------------------------------------
The contract provides a death benefit in the event of your death, which is
payable to the beneficiary named under the contract (contract beneficiary).
> Under contracts issued in connection with most types of plans except
voluntary 403(b) plans, the contract holder must be named as the contract
beneficiary, but may direct that we make any payments to the beneficiary you
name under the plan (plan beneficiary).
> Under contracts issued in connection with voluntary 403(b) plans, you may
generally designate your own contract beneficiary who will normally be your
plan beneficiary, as well.
During the Accumulation Phase
Payment Process
1. Following your death, the contract beneficiary (on behalf of the plan
beneficiary, if applicable) must provide the Company with proof of death
acceptable to us and a payment request in good order.
2. The payment request should include selection of a benefit payment option.
3. Within seven days after we receive proof of death acceptable to us and
payment request in good order at our Home Office, we will mail payment,
unless otherwise requested.
Until a payment option is selected, account dollars will remain invested as at
the time of your death, and no distributions will be made.
Benefit Payment Options. The following payment options are available, if
allowed by the Tax Code:
> Lump-sum payment;
> Payment under an available income phase payment option (see "The Income
Phase--Payment Options"); and
> If the contract beneficiary or plan beneficiary is your spouse, payment under
an available Systematic Distribution Option (may not be available under all
plans). See "Systematic Distribution Options."
The following options are also available under some contracts, however, the Tax
Code limits how long the death benefit proceeds may be left in these options:
> Leaving the account value invested in the contract; and
> Under some contracts, leaving your account value on deposit in the Company's
general account and receiving monthly, quarterly, semi-annual or annual
interest payments at the interest rate currently credited on such
28
<PAGE>
deposits. The balance on deposit can be withdrawn at any time or paid in
accordance with any of the available income phase payment options. See The
Income Phase--Payment Options".
Death Benefit Calculation. For most contracts, the death benefit will be based
on your account value. For amounts held in the Guaranteed Accumulation Account
(GAA), any positive aggregate market value adjustment (the sum of all market
value adjustments calculated due to a withdrawal) will be included in your
account value. If a negative market value adjustment applies, it would be
deducted only if the death benefit is withdrawn more than six months after your
death. We describe the market value adjustment in Appendix I and in the GAA
prospectus.
The death benefit is calculated as of the next time we value your account
following the date on which we receive proof of death and payment request in
good order. In addition to this amount, some states require we pay interest
calculated from date of death at a rate specified by state law.
Some contracts provide a guaranteed death benefit if the contract beneficiary
(on behalf of the plan beneficiary, if applicable) elects a lump-sum
distribution or an income phase payment option within six months of your death.
For those contracts, the guaranteed death benefit is the greater of:
(a) Your account value on the day that notice of death and request for payment
are received in good order at our Home Office, plus any positive aggregate
market value adjustment that applies to amounts allocated to the GAA; or
(b) The sum of payments (minus any applicable premium tax) made to your
account, minus withdrawals made from your account and any outstanding loan
amount.
Tax Code Requirements. The Tax Code requires distribution of death benefit
proceeds within a certain period of time. Failure to begin receiving death
benefit payments within those time periods can result in tax penalties.
Regardless of the method of payment, death benefit proceeds will generally be
taxed to the beneficiary in the same manner as if you had received those
payments. See "Taxation" for additional information.
29
<PAGE>
We may have used the following terms in prior prospectuses:
Annuity Phase--Income Phase
Annuity Option--Income Phase Payment Option
Annuity Payment--Income Phase Payment
Annuitization--Initiating Income Phase Payments
The Income Phase
- --------------------------------------------------------------------------------
During the income phase, you receive payments from your accumulated account
value.
Initiating Income Phase Payments. At least 30 days prior to the date you want
to start receiving income phase payments, the contract holder, or you if
permitted by the plan, must notify us in writing of the following:
> Start date;
> Income phase payment option (see the income phase payment options table in
this section);
> Income phase payment frequency (i.e., monthly, quarterly, semi-annually or
annually);
> Choice of fixed or variable payments;
> Selection of an assumed net investment rate (only if variable payments are
elected); and
> Under some plans, certification from your employer and/or submission of the
appropriate forms is also required.
The account will continue in the accumulation phase until the contract holder
or you, as applicable, properly initiate income phase payments. Once an income
phase payment option is selected, it may not be changed; however, certain
options allow you to withdraw a lump sum.
What Affects Income Phase Payments? Some of the factors that may affect income
phase payments include: your age, your account value, the income phase payment
option selected, number of guaranteed payments (if any) selected, and whether
you select variable or fixed payments.
Fixed Payments. Amounts funding fixed income phase payments will be held in the
Company's general account. Fixed payments will remain the same over time.
Variable Payments. Amounts funding your variable income phase payments will be
held in the subaccount(s) selected. The contracts may restrict the subaccounts
available, the number of investment options to be selected and how many
transfers, if any, are allowed among options during the income phase. For
variable payments, an assumed net investment rate must be selected.
Payments from the Fixed Plus Account. Under some contracts, if a nonlifetime
income phase payment option is selected, payments from the Fixed Plus Account
may only be made on a fixed basis.
Assumed Net Investment Rate. If you select variable income phase payments, an
assumed net investment rate must also be selected. If you select a 5% rate,
your first payment will be higher, but subsequent payments will increase only
if the investment performance of the subaccounts you selected is greater than
5% annually, after deduction of fees. Payment amounts will decline if the
investment performance is less than 5%, after deduction of fees.
If you select a 3 1/2% rate, your first income phase payment will be lower and
subsequent payments will increase more rapidly or decline more slowly depending
upon the investment performance of the subaccounts you selected. For more
information about selecting an assumed net investment rate, request a copy of
the Statement of Additional Information by calling us. See "Contract
Overview--Questions."
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<PAGE>
Selecting an Increasing Payment. Under certain income phase payment options, if
you select fixed payments, some contracts will allow you to elect an increase
of one, two, or three percent, compounded annually. The higher your percentage,
the lower your initial payment will be, while future payments will increase
each year at a greater rate. Generally, this feature is not available with cash
refund payment options and nonlifetime options.
Charges Deducted.
> If variable income phase payments are selected, we make a daily deduction for
mortality and expense risks from any amounts held in the subaccounts. If you
choose variable income phase payments and a nonlifetime income phase option,
we still make this deduction from the subaccounts selected, even though we no
longer assume any mortality risk for you. The maximum mortality and expense
risk charge during the income phase is 1.25% on an annual basis of your
account value invested in the subaccount. Under some contracts, we may reduce
this fee based on certain factors. However, the charge that may apply to a
given participant upon entry into the income phase will remain fixed while
the participant remains in that phase. See "Fees--Mortality and Expense Risk
Charge."
> We may also deduct a daily administrative charge from amounts held in the
subaccounts. We currently charge this under some contracts and reserve the
right to charge it under all others. The maximum amount is 0.25% on an annual
basis of your account value invested in the subaccount. If we are currently
imposing this fee under the contract issued in connection with your plan when
you enter the income phase, the fee will apply throughout the entire income
phase.
Required Minimum Payment Amounts. The initial income phase payment or the
annual income phase payment total must meet the minimums stated in the
contract. If your account value is too low to meet these minimum payment
amounts, you will receive one lump-sum payment.
Death Benefit During the Income Phase. The death benefits that may be available
to a beneficiary are outlined in the income phase payment option table below.
If a lump-sum payment is due as a death benefit, we will make payment within
seven calendar days after we receive proof of death acceptable to us in good
order and the payment request at our Home Office.
Taxation. To avoid certain tax penalties, you and any beneficiary must meet the
distribution rules imposed by the Tax Code. See "Taxation."
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<PAGE>
Income Phase Payment Options
The following tables list the income phase payment options and accompanying
death benefits which may be available under the contracts. Some contracts
restrict the options and the terms available. Refer to your certificate or
check with your contract holder for details. We may offer additional income
phase payment options under the contract from time to time.
Terms used in the Tables:
Annuitant: The person(s) on whose life expectancy the income phase payments are
calculated.
Beneficiary: The person designated to receive the death benefit payable under
the contract.
<TABLE>
<CAPTION>
- -----------------------------------------------------------------------------------------------------------------------------
Lifetime Income Phase Payment Options
- -----------------------------------------------------------------------------------------------------------------------------
<S> <C>
Length of Payments: For as long as the annuitant lives. It is possible that only one payment will
Life Income be made should the annuitant die prior to the second payment's due date.
Death Benefit--None: All payments end upon the annuitant's death.
- -----------------------------------------------------------------------------------------------------------------------------
Length of Payments: For as long as the annuitant lives, with payments guaranteed for your
Life Income-- choice of 5 to 30 years, or as otherwise specified in the contract.
Guaranteed Pay- Death Benefit--Payment to the Beneficiary: If the annuitant dies before we have made all the
ments guaranteed payments, we will continue to pay the beneficiary the remaining payments. Unless
prohibited by a prior election of the contract holder, the beneficiary may elect to receive a
lump-sum payment equal to the present value of the remaining guaranteed payments.
- -----------------------------------------------------------------------------------------------------------------------------
Length of Payments: For as long as either annuitant lives. It is possible that only one payment
will be made should both annuitants die before the second payment's due date.
Continuing Payments:
Life Income--Two (a) When you select this option, you choose for 100%, 66 2/3% or 50% of the payment to con-
Lives tinue to the surviving annuitant after the first death; or
(b) 100% of the payment to continue to the annuitant on the second annuitant's death, and
50% of the payment to continue to the second annuitant on the annuitant's death.
Death Benefit--None: All payments end after the death of both annuitants.
- -----------------------------------------------------------------------------------------------------------------------------
Length of Payments: For as long as either annuitant lives, with payments guaranteed for your choice
of 5 to 30 years, or as otherwise specified in the contract.
Life Income--Two Continuing Payments: 100% of the payment to continue to the surviving annuitant after the
Lives--Guaranteed first death.
Payments Death Benefit--Payment to the Beneficiary: If both annuitants die before the guaranteed pay-
ments have all been paid, we will continue to pay the beneficiary the remaining payments.
Unless prohibited by a prior election of the contract holder, the beneficiary may elect to receive
a lump-sum payment equal to the present value of the remaining guaranteed payments.
- -----------------------------------------------------------------------------------------------------------------------------
Life Income--Cash Length of Payments: For as long as the annuitant lives.
Refund Option Death Benefit--Payment to the Beneficiary: Following the annuitant's death, we will pay a lump-
(limited sum payment equal to the amount originally applied to the payment option (less any premium
availability-- tax) and less the total amount of fixed income phase payments paid.
fixed payment
only)
-----------------------------------------------------------------------------------------------------------------------------
Life Income--Two Length of Payments: For as long as either annuitant lives.
Lives--Cash Continuing Payment: 100% of the payment to continue after the first death.
Refund Option Death Benefit--Payment to the Beneficiary: When both annuitants die, we will pay a lump-sum
(limited payment equal to the amount applied to the income phase payment option (less any premium
availability--fixed tax) and less the total amount of fixed income phase payments paid.
payment only)
- -----------------------------------------------------------------------------------------------------------------------------
</TABLE>
Table continued ---->
32
<PAGE>
Income phase payment options continued
<TABLE>
- -----------------------------------------------------------------------------------------------------------------------------
Nonlifetime Income Phase Payment Options(1)
- -----------------------------------------------------------------------------------------------------------------------------
<S> <C>
Length of Payments: Payments will continue for the number of years you choose, based on what is
available under the contract. Under some contracts, for amounts held in the Fixed Plus Account
during the accumulation phase, the payment must be on a fixed basis and must be for at least 5
Nonlifetime-- years. In certain cases, a lump-sum payment may be requested at any time (see below).
Guaranteed Death Benefit--Payment to the Beneficiary: If the annuitant dies before we make all the
Payments guaranteed payments, we will continue to pay the beneficiary the remaining payments. Unless
prohibited by a prior election of the contract holder, the beneficiary may elect to receive a lump-
sum payment equal to the present value of the remaining guaranteed payments. We will not
impose any early withdrawal charge.
- -----------------------------------------------------------------------------------------------------------------------------
</TABLE>
- --------------------------------------------------------------------------------
Lump-sum Payment: If the Nonlifetime--Guaranteed Payments option is elected with
variable payments, you may request at any time that all or a portion of the
present value of the remaining payments be paid in one lump sum. A lump sum
elected before three or five years of income phase payments have been completed
as specified by the contract will be treated as a withdrawal during the
accumulation phase and we will charge any applicable early withdrawal charge. If
the early withdrawal charge is based on completed purchase payment periods, each
year that passes after income payments begin will be treated as a completed
purchase payment period, even if no additional payments are made. See
"Fees--Early Withdrawal Charge." Lump-sum payments will be sent within seven
calendar days after we receive the request for payment in good order at the Home
Office.
Calculation of Lump-sum Payments: If a lump-sum payment is available to a
beneficiary or to you in the income phase payment options above, the rate we use
to calculate the present value of the remaining guaranteed payments is the same
rate we use to calculate the income phase payments (i.e., the actual fixed rate
used for the fixed payments or the 3 1/2% or 5% assumed net investment rate for
variable payments).
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(1) For contracts issued to the State of Montana and Board of Trustees,
University of Illinois, the nonlifetime option is available only with fixed
income phase payments.
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In This Section
I. Introduction
II. Your Retirement Plan
III. Withdrawals and other Distributions
o Taxation of Distributions
o Taxation of Death Benefits
o 10% Penalty Tax
o Withholding for Federal Income Tax Liability
IV. Minimum Distribution Requirements
o 50% Excise Tax
V. Rules Specific to Certain Plans
o 457 Plans
o 403(b) Plans
o 401(a), 401(k) and 403(a) Plans
o 415(m) Arrangements
o Bona Fide Severance Pay Plans
VI. Taxation of the Company
When consulting a tax adviser, be certain that he or she has expertise in the
Tax Code sections applicable to your tax concerns.
Taxation
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I. Introduction
This section discusses our understanding of current federal income tax laws
affecting the contract. You should keep the following in mind when reading it:
> Your tax position (or the tax position of the beneficiary, as applicable)
determines federal taxation of amounts held or paid out under the contract.
> Tax laws change. It is possible that a change in the future could affect
contracts issued in the past.
> This section addresses federal income tax rules and does not discuss federal
estate and gift tax implications, state and local taxes or any other tax
provisions.
> We do not make any guarantee about the tax treatment of the contract or
transactions involving the contract.
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We do not intend this information to be tax advice. For advice about the effect
of federal income taxes or any other taxes on amounts held or paid out under
the contract, consult a tax adviser. For more comprehensive information,
contact the Internal Revenue Service.
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II. Your Retirement Plan
The tax rules applicable to retirement plans vary according to plan type and
terms and conditions of the plan. To understand what tax rules apply, you need
to know the code section under which your plan qualifies. Contact your plan
sponsor, local representative or the Company to learn which code section
applies to your plan.
Plan Types. The contract is designed for use with retirement plans that qualify
under code sections 401(a), 401(k), 403(a), 403(b) or 457. A code section 457
plan may be either a 457(b) (eligible) plan or a 457 (f) (ineligible) plan. The
contract may also be used with code section 415(m) arrangements. You will not
generally pay taxes on earnings from the annuity contract described in this
prospectus until they are withdrawn (or in the case of a 457 plan, paid or made
available to you or a beneficiary). Tax-qualified retirement arrangements under
Tax Code sections 401(a), 401(k), 403(a), 403(b) or 457 also generally defer
payment of taxes on earnings until they are withdrawn (or in the case of a 457
plan, paid or made available to you or a beneficiary). (See "Taxation of
Distributions" later in this "Taxation" section for a discussion of how
distributions under the various types of plans are taxed.) When an annuity
contract is used to fund one of these tax-qualified retirement arrangements,
you should know that the annuity contract does not provide any additional tax
deferral of earnings beyond the tax deferral provided by the tax-qualified
retirement arrangement. However, annuities do provide other features and
benefits which may be valuable to you. You should discuss your alternatives
with your financial representative.
The Contract and Retirement Plans. Contract holders and contract participants
are responsible for determining that contributions, distributions and other
transactions satisfy applicable laws. Legal counsel and a tax adviser should be
consulted regarding the suitability of the contract.
Because the plan is not part of the contract, we are not bound by any plan's
terms or conditions.
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III. Withdrawals and Other Distributions
Certain tax rules apply to distributions from the contract. A distribution is
any amount taken from the contract including withdrawals, income phase
payments, rollovers and any death benefit.
We report the taxable portion of all distributions to the IRS.
Taxation of Distributions
457(b) Plans. All amounts received under a 457(b) plan are includible in gross
income when paid or otherwise made available to you or your beneficiary.
457(f) Plans. Compensation deferred under a 457(f) plan is includible in gross
income in the first year when it is no longer subject to a "substantial risk of
forfeiture" as defined by the Tax Code.
401(a), 401(k), 403(a) or 403(b) Plans. All distributions from these plans are
taxed as received unless:
> The distribution is rolled over to another plan of the same type or to a
traditional individual retirement annuity/account (IRA) in accordance with
the Tax Code, or
> You made after-tax contributions to the plan. In this case, depending upon
the type of distribution, a portion may be excluded from gross income
according to rules detailed in the Tax Code.
Taxation of Death Benefits
In general, payments received by your beneficiaries after your death are taxed
in the same manner as if you had received those payments.
10% Penalty Tax
The Tax Code imposes a 10% penalty tax on the taxable portion of any
distribution from a 401(a), 401(k), 403(a) or 403(b) plan, unless certain
exceptions, including one or more of the following have occurred:
(a) You have attained age 59 1/2;
(b) You have become disabled, as defined in the Tax Code;
(c) You have died;
(d) You have separated from service with the plan sponsor at or after age 55;
(e) The distribution amount is rolled over into another plan of the same type
or to an IRA in accordance with the terms of the Tax Code;
(f) The distribution amount is made in substantially equal periodic payments
(at least annually) over your life or life expectancy or the joint lives
or joint life expectancies of you and your beneficiary. Also, you must
have separated from service with the plan sponsor; or
(g) The distribution is made due to an IRS levy upon your account.
In addition, the penalty tax does not apply for the amount of a distribution
equal to unreimbursed medical expenses incurred by you that qualify for
deduction as specified in the Tax Code. The Tax Code may impose other penalty
taxes in other circumstances.
Withholding for Federal Income Tax Liability
Any distributions under the contracts are generally subject to withholding.
Federal income tax liability rates vary according to the type of distribution
and the recipient's tax status.
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401(a), 401(k), 403(a) or 403(b) Plans. Generally, under these plans you or a
beneficiary may elect not to have tax withheld from distributions. However,
certain distributions from these plans are subject to a mandatory 20% federal
income tax withholding.
457 Plans. All distributions from a 457 plan, except death benefits, are
subject to mandatory federal income tax withholding as wages. No withholding is
required on payments to beneficiaries.
Non-resident Aliens. If you or a beneficiary is a non-resident alien and you
participate in other than a 457 plan, then any withholding is governed by code
section 1441 based on the individual's citizenship, the country of domicile and
treaty status.
IV. Minimum Distribution Requirements
To avoid certain tax penalties, you and any beneficiary must meet the minimum
distribution requirements imposed by the Tax Code. These requirements do not
apply to 457(f) plans. These rules may dictate one or more of the following:
> Start date for distributions;
> The time period in which all amounts in your account(s) must be distributed;
or
> Distribution amounts.
Start Date. Generally, you must begin receiving distributions by April 1 of the
calendar year following the calendar year in which you attain age 70 1/2 or
retire, whichever occurs later, unless:
> You are a 5% owner, in which case such distributions must begin by April 1st
of the calendar year following the calendar year in which you attain age
70 1/2; or
> Under 403(b) plans, you had amounts under the contract as of December 31,
1986. In this case, distribution of these amounts generally must begin by the
end of the calendar year in which you attain age 75 or retire, if later.
However, if you take any distributions in excess of the minimum required
amount, then special rules require that some or all of the December 31, 1986
balance be distributed earlier.
Time Period. We must pay out distributions from the contract over one of the
following time periods:
> Over your life or the joint lives of you and your beneficiary, or
> Over a period not greater than your life expectancy or the joint life
expectancies of you and your beneficiary.
Amount (457(b) Plans Only). Any distribution from a 457(b) plan, payable over a
period of more than one year, must be made in substantially non-increasing
amounts.
50% Excise Tax. If you fail to receive the minimum required distribution for
any tax year, a 50% excise tax is imposed on the required amount that was not
distributed.
Minimum Distribution of Death Benefits. The following applies to all plans
except 457(f) plans. Different distribution requirements apply if your death
occurs:
> After you begin receiving minimum distributions under the contract, or
> Before you begin receiving such distributions.
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<PAGE>
If your death occurs after you begin receiving minimum distributions under the
contract, distributions must be made at least as rapidly as under the method in
effect at the time of your death. Code section 401(a)(9) provides specific
rules for calculating the minimum required distributions at your death. The
rules differ, depending upon:
> Whether your minimum required distribution was calculated each year based on
your single life expectancy or the joint life expectancies of you and your
beneficiary, and
> Whether life expectancy was recalculated.
The rules are complex and any beneficiary should consult with a tax adviser
before electing the method of calculation to satisfy the minimum distribution
requirements.
Should you die before you begin receiving minimum distributions under the
contract, your entire balance must be distributed by December 31 of the
calendar year containing the fifth anniversary of the date of your death. For
example, if you die on September 1, 2000, your entire balance must be
distributed to the beneficiary by December 31, 2005. However, if the
distribution begins by December 31 of the calendar year following the calendar
year of your death, then payments may be made in one of the following
time-frames:
> Over the life of the beneficiary, or
> Over a period not extending beyond the life expectancy of the beneficiary.
For 457(b) plans, if the beneficiary is not your spouse, the time-frame may not
exceed fifteen years.
Start Dates for Spousal Beneficiaries. If the beneficiary is your spouse, the
distribution must begin on or before the later of the following:
> December 31 of the calendar year following the calendar year of your death,
or
> December 31 of the calendar year in which you would have attained age 70 1/2.
V. Rules Specific to Certain Plans
457 Plans
Code section 457 provides for certain deferred compensation plans. These plans
may be offered by state governments, local governments, political subdivisions,
agencies, instrumentalities and certain affiliates of such entities, and
non-governmental tax exempt organizations. The plan may either be a 457(b)
(eligible) plan or a 457(f) (ineligible) plan. Either type of plan may permit
participants to specify the form of investment for their deferred compensation
account.
457(b) Plan. A 457(b) plan is subject to restrictions on contributions and
distributions.
457(f) Plan. A 457(f) plan is not subject to restrictions on contributions or
distributions, but must contain a "substantial risk of forfeiture" as defined
by the Tax Code. Generally, substantial risk of forfeiture means that your
right to receive deferred compensation is dependent upon your performance of
future services to an employer or other entity.
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<PAGE>
The Contract. We make this contract available to plans subject to code section
457 only if a governmental employer sponsors the plan.
Trust Requirement. 457(b) plans maintained by state or local governments, their
political subdivisions, agencies, instrumentalities and certain affiliates are
required to hold all assets and income of the plan in trust for the exclusive
benefit of plan participants and their beneficiaries. For purposes of meeting
this requirement, custodial accounts and annuity contracts are treated as
trusts.
Contributions Excluded from Gross Income. If your employer's plan is a 457(b)
plan, the Tax Code imposes a maximum limit on annual contributions to your
account(s) that may be excluded from your gross income. For Section 457(b) plan
participants, such limit is generally the lesser of $8,000, as adjusted to
reflect changes in the cost of living, or 33% of your includible compensation
(25% of gross compensation).
Restrictions on Distributions. Under a 457(b) plan, amounts may not be made
available to you earlier than (1) the calendar year you attain age 70 1/2; (2)
when you separate from service with the employer; or (3) when you are faced
with an unforeseeable emergency. A 457(b) plan may permit a one-time in-service
distribution if the total amount payable to the participant does not exceed
$5,000 and no amounts have been deferred by the participant during the 2-year
period ending on the date of distribution.
403(b) Plans
In addition to being offered as an investment option under the contract, shares
of certain of the Funds (DEM[Reg TM] Equity Fund and Janus Twenty Fund) are also
offered for sale directly to the general public. In order to qualify for
favorable tax treatment under Section 403(b), a contract must be considered an
"annuity". In Revenue Procedure 99-44, the Internal Revenue Service concluded
that it will treat a contract as an "annuity" for tax purposes under Section
403(b), notwithstanding that contract premiums are invested at the contract
holder's direction in publicly available securities. This treatment will be
available provided no additional federal tax liability would have been incurred
if the contribution were paid into a trust or a custodial account in an
arrangement that satisfied the requirements of Section 401(a) or 403(b)(7)(A).
We believe that the contract satisfies the requirements set forth in Revenue
Procedure 99-44 and will therefore be treated as an annuity for tax purposes,
notwithstanding the fact that investments may be made in publicly available
securities. However, the exact nature of the requirements of Revenue Procedures
99-44 is unclear, and you should consider consulting with a tax adviser before
electing to invest in one of the Funds that are offered for sale to the general
public.
Under code section 403(b), contributions made by public school systems or
nonprofit healthcare organizations and other section 501(c)(3) tax exempt
organizations to purchase annuity contracts for their employees are generally
excludable from the gross income of the employee. Adverse tax consequences to
the plan and/or to you may result if your beneficial interest in the contract
is assigned or transferred to any person except to an alternate payee under a
qualified domestic relations order in accordance with code section 414(p) or to
the Company as collateral for a loan.
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<PAGE>
Exclusions from Gross Income. In order to be excludable from gross income,
total annual contributions made by you and your employer cannot exceed the
lesser of the following limits set by the Tax Code.
> The first limit, under code section 415, is generally the lesser of 25% of
your compensation or $30,000. Compensation means your compensation from the
employer sponsoring the plan and, for years beginning after December 31,
1997, includes any elective deferrals under code section 402(g) and any
amounts not includible in gross income under code sections 125 or 457.
> The second limit, which is the exclusion allowance under code section 403(b),
is usually calculated according to a formula that takes into account your
length of employment, any pretax contributions you and your employer have
already made under the plan, and any pretax contributions to certain other
retirement plans.
These two limits apply to your contributions as well as to any contributions
made by your employer on your behalf.
> An additional limit specifically limits your salary reduction contributions
to generally no more than $10,500 annually (subject to indexing). Your own
limit may be higher or lower, depending upon certain conditions.
Payments to your account(s) will be excluded from your gross income only if the
plan meets certain nondiscrimination requirements.
Restrictions on Distributions. Code section 403(b)(11) restricts the
distribution under Section 403(b) contracts of:
> Salary reduction contributions made after December 31, 1988;
> Earnings on those contributions; and
> Earnings during such period on amounts held as of December 31, 1988.
Distribution of those amounts may only occur upon your death, attainment of age
59 1/2, separation from service, disability, or financial hardship. Income
attributable to salary reduction contributions and credited on or after January
1, 1989 may not be distributed in the case of hardship.
Transfers from 403(b)(7) Custodial Accounts. If, pursuant to Revenue Ruling
90-24, the Company agrees to accept, under any of the contracts, amounts
transferred from a code section 403(b)(7) custodial account, such amounts will
be subject to the withdrawal restrictions set forth in code section
403(b)(7)(A)(ii).
Taxation of Gains Prior to Distribution. Generally no amounts accumulated under
the contract will be taxable prior to the time of actual distribution.
However, the IRS has stated in published rulings that a variable contract
owner, including participants under code section 403(b) plans, will be
considered the owner of separate account assets if the contract owner possesses
incidents of investment control over the assets. In these circumstances, income
and gains from the separate account assets would be currently includible in the
variable contract owner's gross income.
The Treasury announced that it will issue guidance regarding the extent to
which owners could direct their investments among subaccounts without being
treated as owners of the underlying assets of the separate account. It is
possible that the Treasury's position, when announced, may adversely affect the
tax treatment of existing contracts. The Company therefore reserves the right
to modify the contract as necessary to attempt to prevent the owner from being
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considered the federal tax owner of a pro rata share of the assets of the
separate account.
401(a), 401(k) and 403(a) Plans
Code sections 401(a), 401(k) and 403(a) permit certain employers to establish
various types of retirement plans for employees, and permit self-employed
individuals to establish various types of retirement plans for themselves and
for their employees. These retirement plans may permit the purchase of the
contracts to accumulate retirement savings under the plans.
Assignment or Transfer of Contracts. Adverse tax consequences to the plan
and/or to you may result if your beneficial interest in the contract is
assigned or transferred to persons other than: a plan participant as a means to
provide benefit payments; an alternate payee under a qualified domestic
relations order in accordance with code section 414(p); or to the Company as
collateral for a loan.
Exclusion From Gross Income. The Tax Code imposes a maximum limit on annual
payments to your account(s) that may be excluded from gross income. The
employer must calculate this limit under the plan in accordance with code
section 415. This limit is generally the lesser of 25% of your compensation or
$30,000. Compensation means your compensation from the employer sponsoring the
plan and, for years beginning after December 31, 1997, includes any elective
deferrals under code section 402(g) and any amounts not includible in gross
income under code sections 125 or 457. The limit applies to your contributions
as well as any contributions made by your employer on your behalf. There is an
additional limit that specifically limits your salary reduction contributions
under a 401(k) plan to generally no more than $10,500 annually (subject to
indexing). Your own limits may be higher or lower, depending upon certain
conditions. In addition, payments to your account(s) will be excluded from your
gross income only if the plan meets certain nondiscrimination requirements.
Restrictions on Distributions. Code section 401(k) restricts distribution from
your 401(k) employee account, and possibly all or a portion of your 401(k)
employer account if such amounts are included in determining compliance with
certain nondiscrimination requirements under the Tax Code.
Subject to the terms of the 401(k) plan, distribution of these restricted
amounts may only occur upon: retirement, death, attainment of age 59 1/2,
disability, separation from service, financial hardship, termination of the
plan in certain circumstances, or, generally, if your employer is a corporation
and disposes of substantially all of its assets or disposes of a subsidiary. In
addition, income attributable to salary reduction contributions and credited on
or after January 1, 1989, may not be distributed in the case of hardship.
415(m) Arrangements
If you participate in the contract through a qualified governmental excess
benefit arrangement, defined in code section 415(m), the amounts provided under
the contract may be subject to the same requirements as those applied to code
section 457(b) plans described above, except that the limits described in
"Contributions Excluded from Taxable Income" do not apply. If the code section
415(m) arrangement is not designed to meet the requirements of code section
457(b), then the amounts provided under the contract are taxed in accordance
with code section 451 and are generally taxable when paid or made available to
you.
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Bona Fide Severance Pay Plans
If you participate in the contract through certain bona fide severance pay
plans, described in code section 457(e)(11), amounts provided under the
contract are not generally taxable until paid or made available to you.
However, because these plans are not clearly defined in the Code, it may be
determined that your plan does not qualify as a bona fide severance pay plan.
If the plan does not qualify, then amounts provided under the contract are
taxable in the year in which they are deferred. Because of this lack of
clarity, it is imperative that you consult your tax adviser for guidance
regarding taxation.
VI. Taxation of the Company
We are taxed as a life insurance company under the Tax Code. Variable Annuity
Account C is not a separate entity from us. Therefore, it is not taxed
separately as a "regulated investment company," but is taxed as part of the
Company.
We automatically apply investment income and capital gains attributable to the
separate account to increase reserves under the contracts. Because of this,
under existing federal tax law we believe that any such income and gains will
not be taxed to the extent that such income and gains are applied to increase
reserves under the contracts. In addition, any foreign tax credits attributable
to the separate account will be first used to reduce any income taxes imposed
on the separate account before being used by the Company.
In summary, we do not expect that we will incur any federal income tax
liability attributable to the separate account and we do not intend to make any
provision for such taxes. However, changes in federal tax laws and/or their
interpretation may result in our being taxed on income or gains attributable to
the separate account. In this case, we may impose a charge against the separate
account (with respect to some or all of the contracts) to set aside provisions
to pay such taxes. We may deduct this amount from the separate account,
including from your account value invested in the subaccounts.
Other Topics
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The Company
Aetna Life Insurance and Annuity Company (the Company, we, us, our) issues the
contracts described in this prospectus and is responsible for providing each
contract's insurance and annuity benefits.
We are a stock life insurance company organized under the insurance laws of the
State of Connecticut in 1976 and an indirect wholly owned subsidiary of Aetna
Inc. Through a merger, our operations include the business of Aetna Variable
Annuity Insurance Company (formerly known as Participating Annuity Life
Insurance Company, an Arkansas life insurance company organized in 1954).
We are engaged in the business of issuing life insurance and annuities.
Our principal executive offices are located at:
151 Farmington Avenue
Hartford, Connecticut 06156
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Variable Annuity Account C
We established Variable Annuity Account C (the "separate account") in 1976 as a
segregated asset account to fund our variable annuity contracts. The separate
account is registered as a unit investment trust under the Investment Company
Act of 1940 (the "40 Act"). It also meets the definition of "separate account"
under the federal securities laws.
The separate account is divided into "subaccounts." These subaccounts invest
directly in shares of a corresponding fund.
Although we hold title to the assets of the separate account, such assets are
not chargeable with the liabilities of any other business that we conduct.
Income, gains or losses of the separate account are credited to or charged
against the assets of the separate account without regard to other income,
gains or losses of the Company. All obligations arising under the contracts are
obligations of the Company.
Performance Reporting
We may advertise different types of historical performance for the subaccounts
including:
> Standardized average annual total returns; and
> Non-standardized average annual total returns.
We may also advertise certain ratings, rankings or other information related to
the Company, the subaccounts or the funds. For further details regarding
performance reporting and advertising, request a Statement of Additional
Information at the number listed in "Contract Overview--Questions."
Standardized Average Annual Total Returns. We calculate standardized average
annual total returns according to a formula prescribed by the SEC. This shows
the percentage return applicable to $1,000 invested in the subaccount over the
most recent one, five and 10-year periods. If the investment option was not
available for the full period, we give a history from the date money was first
received in that option under the separate account.
We include all recurring charges during each period (e.g., mortality and
expense risk charges, annual maintenance fees, administrative expense charges
(if any) and any applicable early withdrawal charges).
Non-Standardized Average Annual Total Returns. We calculate non-standardized
average annual total returns in a similar manner as that stated above, except
we do not include the deduction of any applicable early withdrawal charge. Some
non-standardized returns may also exclude the effect of a maintenance fee. If
we reflected these charges in the calculation, they would decrease the level of
performance reflected by the calculation. Non-standardized returns may also
include performance from the fund's inception date, if that date is earlier
than the one we use for standardized returns.
Voting Rights
Each of the subaccounts holds shares in a fund and each is entitled to vote at
regular and special meetings of that fund. Under our current view of applicable
law, we will vote the shares for each subaccount as instructed by persons
having a voting interest in the subaccount. Generally, under contracts issued
in connection with section 403(b), 401 or 403(a) plans, you have a fully vested
interest in the value of your employee account, and in your employer account to
the extent of
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your vested percentage in the plan. Therefore, under such plans you generally
have the right to instruct the contract holder how to direct us to vote shares
attributable to your account. Under contracts issued in connection with section
457 plans, the contract holder retains all voting rights. We will vote shares
for which instructions have not been received in the same proportion as those
for which we received instructions. Each person who has a voting interest in
the separate account will receive periodic reports relating to the funds in
which he or she has an interest, as well as any proxy materials and a form on
which to give voting instructions. Voting instructions will be solicited by a
written communication at least 14 days before the meeting.
The number of votes, whole and fractional, any person is entitled to direct
will be determined as of the record date set by any fund in which that person
invests through the subaccounts.
> During the accumulation phase, the number of votes is equal to the portion of
your account value invested in the fund, divided by the net asset value of
one share of that fund.
> During the income phase, the number of votes is equal to the portion of
reserves set aside for the contract's share of the fund, divided by the net
asset value of one share of that fund.
Contract Distribution
The Company will serve as the principal underwriter for the securities sold
under this prospectus. The Company is registered as a broker-dealer with the
SEC and is a member of the National Association of Securities Dealers, Inc.
As principal underwriter, the Company will enter into arrangements with one or
more registered broker-dealers, including at least one affiliate of the
Company, to offer and sell the contracts described in this prospectus. We call
these entities "distributors."
We and one or more of our affiliates may also sell the contracts directly. All
individuals offering and selling the contracts must be registered
representatives of a broker-dealer and must be licensed as insurance agents to
sell variable annuity contracts
Commission Payments. We may pay commissions to persons who offer and sell the
contracts. The maximum percentage amount we ever pay with respect to a given
purchase payment is the first-year percentage which ranges from 1% to a maximum
of 7% of the first year of payments to an account. We may also pay renewal
commissions on payments made after the first year and, under group contracts,
asset-based service fees. The average of all commissions and asset-based
service fees paid is estimated to equal approximately 3% of the total payments
made over the life of an average contract. Some sales personnel may receive
various types of non-cash compensation as special sales incentives, including
trips and educational and/or business seminars. However, any such compensation
will be paid in accordance with NASD rules. In addition, we may provide
additional compensation to the Company's supervisory and other management
personnel if the overall amount of investments in funds advised by the Company
or its affiliates increases over time.
We may reimburse the distributor for certain expenses. The names of the
distributor and the registered representative responsible for your account are
stated in your enrollment materials. Commissions and sales related expenses are
paid by us and are not deducted from payments to your account.
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Third Party Compensation Arrangements. Occasionally, we may:
> Pay commissions and fees to distributors affiliated or associated with the
contract holder, you and/or other contract participants; and/or
> Enter into agreements with entities associated with the contract holder, you
and/or other participants. Through such agreements, we may pay the entities
for certain services in connection with administering the contract.
In both these circumstances there may be an understanding that the distributor
or entities would endorse us as a provider of the contract. You will be notified
if you are purchasing a contract that is subject to these arrangements.
Contract Modification
We may change the contract as required by federal or state law. In addition, we
may, upon 30 days' written notice to the contract holder, make other changes to
group contracts that would apply only to individuals who become participants
under that contract after the effective date of such changes. If the group
contract holder does not agree to a change, we reserve the right to refuse to
establish new accounts under the contract, and under some contracts, to
discontinue accepting payments to existing accounts. Certain changes will
require the approval of appropriate state or federal regulatory authorities.
In addition, under some contracts we reserve the right, without contract holder
consent, to change the tables for determining the amount of income phase
payments or the income phase payment options available. Such a change would only
apply to income phase payments attributable to contributions accepted after the
date of change.
Legal Matters and Proceedings
We are aware of no material legal proceedings pending which involve the separate
account as a party or which would materially affect the separate account. The
validity of the securities offered by this prospectus has been passed upon by
Counsel to the Company.
In recent years, several life insurance and annuity companies have been named as
defendants in lawsuits, including class action lawsuits, relating to life
insurance and annuity pricing and sales practices. A purported class action
complaint was filed in the Circuit Court of Lauderdale County, Alabama on March
28, 2000 by Loretta Shaner against the Company (the "Shaner Complaint"). The
Shaner Complaint seeks unspecified compensatory damages from the Company and
unnamed affiliates of the Company. The Shaner Complaint claims that the
Company's sale of deferred annuity products for use as investments in
tax-deferred contributory retirement plans (e.g., IRAs) is improper. This
litigation is in the preliminary stages. The Company intends to defend the
action vigorously.
The Company also is a party to other litigation and arbitration proceedings in
the ordinary course of its business, none of which is expected to have a
material adverse effect on the Company.
Payment Delay or Suspension
We reserve the right to suspend or postpone the date of any payment of benefits
or values under the following circumstances:
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(a) On any valuation date when the New York Stock Exchange is closed (except
customary weekend and holiday closings), or when trading on the Exchange is
restricted;
(b) When an emergency exists as determined by the SEC so that disposal of
securities held in the subaccounts is not reasonably practicable or it is
not reasonably practicable for us fairly to determine the value of the
subaccount's assets; or
(c) During any other periods the SEC may by order permit for the protection of
investors.
The conditions under which restricted trading or an emergency exists shall be
determined by the rules and regulations of the SEC.
Transfer of Ownership; Assignment
An assignment of a contract will only be binding on us if it is made in writing
and sent to us at our Home Office. We will use reasonable procedures to confirm
that the assignment is authentic, including verification of signature. If we
fail to follow our own procedures, we will be liable for any losses to you
directly resulting from the failure. Otherwise, we are not responsible for the
validity of any assignment. The rights of the contract holder and the interest
of the annuitant and any beneficiary will be subject to the rights of any
assignee we have on our records.
Account Termination
Under some contracts, where allowed by state law, we reserve the right to
terminate an individual account if the account value is less than $5,000
($3,500 under some contracts and $1,999 for some contracts issued in New York),
this value is not due to negative investment performance, and if no purchase
payments have been received within the previous twelve months (thirty-six
months under some contracts issued in New York). We will notify you or the
contract holder 90 days prior to terminating the account. If we exercise this
right we will not deduct an early withdrawal charge.
Intent to Confirm Quarterly
Under certain contracts, we will provide confirmation of scheduled transactions
quarterly rather than immediately to the participant.
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Contents of the Statement of Additional Information
- --------------------------------------------------------------------------------
The Statement of Additional Information (SAI) contains more specific
information on the Separate Account and the contract, as well as the financial
statements of the Separate Account and the Company. A list of the contents of
the SAI is set forth below:
General Information and History
Variable Annuity Account C
Offering and Purchase of Contracts
Performance Data
General
Average Annual Total Return Quotations
Income Phase Payments
Sales Material and Advertising
Independent Auditors
Financial Statements of the Separate Account
Financial Statements of the Company
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Appendix I
Guaranteed Accumulation Account
- --------------------------------------------------------------------------------
The Guaranteed Accumulation Account (GAA) is a fixed interest option that may
be available during the accumulation phase. This appendix is only a summary of
certain facts about the GAA. Please read the GAA prospectus before investing in
this option.
In General. Amounts that you invest in GAA will earn a guaranteed interest rate
if amounts are left in GAA for the specified period of time. If you withdraw or
transfer those amounts before the specified period of time has elapsed, we may
apply a "market value adjustment," which may be positive or negative.
When you decide to invest money in GAA, you will want to contact your
representative or the Company to learn:
> The interest rate we will apply to the amounts that you invest in GAA. We
change this rate periodically, so be certain that you know what rate we
guarantee on the day your account dollars are invested into GAA.
> The period of time your account dollars need to remain in GAA in order to
earn that rate. You are required to leave your account dollars in GAA for a
specified period of time (guaranteed term), in order to earn the guaranteed
interest rate.
Deposit Periods. A deposit period is the time during which we offer a specific
interest rate if you deposit dollars for a certain guaranteed term. For a
particular interest rate and guaranteed term to apply to your account dollars,
you must invest them during the deposit period during which that rate and term
are offered.
Interest Rates. We guarantee different interest rates, depending upon when
account dollars are invested in GAA. The interest rate we guarantee is an
annual effective yield; that means that the rate reflects a full year's
interest. We credit interest daily at a rate that will provide the guaranteed
annual effective yield over one year. The guaranteed interest rate will never
be less than the rate stated in the contract.
Fees and Other Deductions.
If all or a portion of your account value in GAA is withdrawn, you may incur the
following:
> Market Value Adjustment (MVA)--as described in this appendix and in the GAA
prospectus;
> Tax Penalties and/or Tax withholding--See "Taxation";
> Early Withdrawal Charge--See "Fees"; and/or
> Maintenance Fee--"See Fees".
We do not make deductions from amounts in the GAA to cover mortality and expense
risks. Rather, we consider these risks when determining the credited rate.
Market Value Adjustment (MVA). If you withdraw or transfer your account value
from GAA before the guaranteed term is completed, an MVA may apply. The MVA
reflects the change in the value of the investment due to changes in interest
rates since the date of deposit. The MVA may be positive or negative.
> If interest rates at the time of withdrawal have increased since the date of
deposit, the value of the investment decreases and the MVA will be negative.
This could result in your receiving less than the amount you paid into GAA.
> If interest rates at the time of withdrawal have decreased since the date of
deposit, the value of the investment increases and the MVA will be positive.
Under some contracts issued in New York, if you have elected ECO as described
in "Systematic Distribution Options," no MVA applies to amounts withdrawn from
GAA.
Guaranteed Terms. The guaranteed term is the period of time account dollars
must be left in GAA in order to earn the interest rate specified for that
guaranteed term. We offer different guaranteed terms at different times. Check
with your representative or the Company to learn the details about the
guaranteed term(s) currently being offered.
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In general we offer the following guaranteed terms:
> short-term--three years or less; and
> long-term--ten years or less, but greater than three years.
At the end of a guaranteed term, your contract holder or you if permitted may:
> transfer dollars to a new guaranteed term;
> transfer dollars to other available investment options; or
> withdraw dollars.
Deductions may apply to withdrawals. See "Fees and Other Deductions" in this
section.
Transfer of Account Dollars. Generally, account dollars invested in GAA may be
transferred among guaranteed terms offered through GAA, and/or to other
investment options offered through the contract. However, transfers may not be
made during the deposit period in which your account dollars are invested in
GAA or for 90 days after the close of that deposit period. We will apply an MVA
to transfers made before the end of a guaranteed term.
Income Phase. GAA cannot be used as an investment option during the income
phase. The contract holder or you, if permitted, may notify us at least 30 days
in advance to elect a variable payment option and to transfer your GAA account
dollars to any of the subaccounts available during the income phase.
Loans. You cannot take a loan from your account value in GAA. However, we
include your account value in GAA when determining the amount of your account
value we may distribute as a loan.
Reinvesting Amounts Withdrawn from GAA. If amounts are withdrawn from GAA and
then reinvested in GAA, we will apply the reinvested amount to the current
deposit period. The guaranteed annual interest rate, and guaranteed terms
available on the date of reinvestment will apply. Amounts will be reinvested
proportionately in the same way as they were allocated before withdrawal.
Your account value will not be credited for any negative MVA that was deducted
at the time of withdrawal.
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Appendix II
Fixed Account
- --------------------------------------------------------------------------------
The Fixed Account is an investment option available during the accumulation
phase under some contracts. Under some contracts, this option is available to
installment purchase plans only. This option is not available in the state of
New York under some contracts.
- --------------------------------------------------------------------------------
Additional information about this option may be found in the contract.
- --------------------------------------------------------------------------------
Amounts allocated to the Fixed Account are held in the Company's general
account which supports insurance and annuity obligations.
General Disclosure. Interests in the Fixed Account have not been registered
with the SEC in reliance upon exemptions under the Securities Act of 1933, as
amended. Disclosure in this prospectus regarding the Fixed Account may be
subject to certain generally applicable provisions of the federal securities
laws relating to the accuracy and completeness of the statements. Disclosure in
this Appendix regarding the Fixed Account has not been reviewed by the SEC.
Interest Rates. The Fixed Account guarantees that amounts allocated to this
option will earn the minimum interest rate specified in the contract. We may
credit a higher interest rate from time to time, but the rate we credit will
never fall below the guaranteed minimum specified in the contract. Interest
rate guarantees are based on the claims-paying ability of the Company. Amounts
applied to the Fixed Account will earn the interest rate in effect at the time
money is applied. Amounts in the Fixed Account will reflect a compound interest
rate as credited by us. The rate we quote is an annual effective yield.
Our determination of credited interest rates reflects a number of factors,
including mortality and expense risks, interest rate guarantees, the investment
income earned on invested assets and the amortization of any capital gains
and/or losses realized on the sale of invested assets. Under this option, we
assume the risk of investment gain or loss by guaranteeing the amounts you
allocate to this option and promising a minimum interest rate and income phase
payment.
Withdrawals. Under certain emergency conditions, some contracts allow us to
defer payment of any withdrawal for a period of up to 6 months or as provided
by federal law. Additionally, if allowed by state law, some contracts provide
that we may pay withdrawals in equal payments with interest, over a period not
to exceed 60 months when:
(a) The Fixed Account withdrawal value exceeds $250,000 on the day before
withdrawal; and
(b) The sum of the current Fixed Account withdrawal and total of all Fixed
Account withdrawals within the past 12 calendar months exceeds 20% of the
amount in the Fixed Account on the day before the current withdrawal.
The contract describes how we will determine the interest rate credited to
amounts held in the Fixed Account during the payment period, including the
minimum interest rate.
Charges. We do not make deductions from amounts in the Fixed Account to cover
mortality and expense risks. We consider these risks when determining the
credited rate.
If you make a withdrawal from amounts in the Fixed Account, an early withdrawal
charge may apply. See "Fees--Early Withdrawal Charge."
Transfers. During the accumulation phase, you may transfer account dollars from
the Fixed Account to any other available investment option. We may vary the
dollar amount that you are allowed to transfer, but it will never be less than
10% of your account value held in the Fixed Account each calendar year or each
12-month period, depending upon the contract. We determine the amount available
for transfer based on your Fixed Account value either (1) on the January 1st
preceding the transfer request or (2) as of the date we receive the transfer
request in good order at our Home Office. The 10% limit does not apply to
amounts being transferred into the Fixed Plus Account (if available under the
contract).
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By notifying the Home Office at least 30 days before income payments begin you,
or the contract holder on your behalf, may elect to have amounts transferred to
one or more of the funds available during the income phase to provide variable
payments.
Contract Loans. If available under your plan, contract loans may be made from
account values held in the Fixed Account.
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Appendix III
Fixed Plus Account
- --------------------------------------------------------------------------------
The Fixed Plus Account is an investment option available during the
accumulation phase under some contracts.
Amounts allocated to the Fixed Plus Account are held in the Company's general
account which supports insurance and annuity obligations.
- --------------------------------------------------------------------------------
Additional information about this option may be found in the contract.
- --------------------------------------------------------------------------------
General Disclosure. Interests in the Fixed Plus Account have not been
registered with the SEC in reliance upon exemptions under the Securities Act of
1933, as amended. Disclosure in this prospectus regarding the Fixed Plus
Account may be subject to certain generally applicable provisions of the
federal securities laws relating to the accuracy and completeness of the
statements. Disclosure in this Appendix regarding the Fixed Plus Account has
not been reviewed by the SEC.
Certain Restrictions. This option is not available in the state of New York
under some contracts. We reserve the right to limit investments in or transfers
to the Fixed Plus Account. Under most contracts, you may not elect certain
withdrawal options including, under most contracts, the systematic distribution
option, if you have requested a Fixed Plus Account transfer or withdrawal in
the prior 12-month period. For some contracts, under certain emergency
conditions, we may defer payment of a withdrawal from the Fixed Plus Account
for a period of up to six months or as provided by federal law.
Interest Rates. The Fixed Plus Account guarantees that amounts allocated to
this option will earn the minimum interest rate specified in the contract. We
may credit a higher interest rate from time to time, but the rate we credit
will never fall below the guaranteed minimum specified in the contract.
Interest rate guarantees are based on the claims-paying ability of the Company.
Under some contracts, we credit amounts held in the Fixed Plus Account with a
rate 0.25% higher than the then-declared rate beginning in the tenth year after
your account was established. Amounts applied to the Fixed Plus Account will
earn the interest rate in effect at the time money is applied. Amounts in the
Fixed Plus Account will reflect a compound interest rate as credited by us. The
rate we quote is an annual effective yield.
Our determination of credited interest rates reflects a number of factors,
including mortality and expense risks, interest rate guarantees, the investment
income earned on invested assets and the amortization of any capital gains
and/or losses realized on the sale of invested assets. Under this option, we
assume the risk of investment gain or loss by guaranteeing the amounts you
allocate to this option and promising a minimum interest rate and income phase
payment.
Requests for Partial Withdrawals. The contract holder or you, if permitted by
the plan, may take up to 20% of the Fixed Plus Account value as a partial
withdrawal in each twelve (12) month period, or under some contracts, in each
calendar year. We determine the amount eligible for partial withdrawal as of
the date we receive a request for partial withdrawal in good order at our Home
Office or as of the January 1st preceding the partial withdrawal request,
depending upon the terms of the contract. The amount allowed for partial
withdrawal is reduced by any Fixed Plus Account withdrawals, transfers, loans
or amounts applied to income phase payment options made in the prior 12 months
(or, under some contracts, the prior calendar year). Under most contracts, in
calculating the 20% limit, we reserve the right to include payments made due to
the election of a systematic distribution option.
Waiver of Partial Withdrawal Limits. We generally waive the 20% limit if the
partial withdrawal is due to the election of an income phase payment option
(under some contracts, the waiver does not apply to the election of a
nonlifetime payment option with variable payments). We also waive the 20% limit
for withdrawals due to your death. Under most contracts, the waiver upon death
may only be exercised once, must occur within six months after your date of
death and must be made proportionally from all subaccounts and fixed interest
options in which the account was invested.
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Also, under some contracts the 20% limit is waived if the withdrawal is due to
financial hardship or hardship resulting from an unforeseeable emergency, as
defined by the Tax Code and regulations thereunder (under some contracts it
must be for an unforeseeable emergency), and the following requirements are
satisfied:
> The hardship is certified (required under most contracts);
> The partial withdrawal is taken proportionally from each investment option in
which your account invests;
> The amount is paid directly to you; and
> The amount paid for all withdrawals due to hardship during the previous
12-month period does not exceed 10% (20% under some contracts) of the average
value of your account(s) and all other accounts under the relevant contracts
during that same period.
Under some contracts, the percentage limit is also waived if the partial
withdrawal is due to separation from service and the following conditions are
met:
> The employer certifies you have separated from service;
> The amount withdrawn is paid directly to you; and
> The amount paid for all partial and full withdrawals due to separation from
service during the previous 12-month period does not exceed 20% of the
average value of your account(s) and all other accounts under the relevant
contracts providing this waiver during that same period.
Additionally, we may allow other waivers of the percentage limit on partial
withdrawals to participants in certain plans. You can determine what additional
waivers, if any, apply to you by referring to the contract or certificate.
Requests for Full Withdrawals. If the contract holder or you, if allowed by the
plan, request a full withdrawal of your Fixed Plus Account value, we will pay
any amounts held in the Fixed Plus Account, with interest, in five annual
payments that will be equal to:
> One-fifth of the Fixed Plus Account value on the day the request is received,
reduced by any Fixed Plus Account withdrawals, transfers, amounts used to
fund income phase payments, or loans made during the prior 12 months (or,
under some contracts, during the prior calendar year);
> One-fourth of the remaining Fixed Plus Account value 12 months later;
> One-third of the remaining Fixed Plus Account value 12 months later;
> One-half of the remaining Fixed Plus Account value 12 months later; and
> The balance of the Fixed Plus Account value 12 months later.
Under some contracts, there is a different method of calculating the amount
available each year. The full withdrawal will be paid in installments of 20% of
your account value held in the Fixed Plus Account, reduced by any Fixed Plus
Account withdrawals, transfers, amounts used to fund income phase payments, or
loans made during the prior 12 months in each of four consecutive 12-month
periods. Under this provision, the remaining Fixed Plus Account balance in the
account may be withdrawn any time after the end of the fourth 12-month period.
Once we receive a request for a full withdrawal, no further withdrawals, loans
or transfers will be permitted from the Fixed Plus Account. A full withdrawal
from the Fixed Plus Account may be canceled at any time before the end of the
five-payment period.
Waiver of Full Withdrawal Provisions. We will waive the Fixed Plus Account
five-installment payout for full withdrawals made due to one or more of the
following:
(a) Due to the election of an income phase payment option (under some contracts
this waiver does not apply to the election of a nonlifetime payment option
with variable payments);
(b) Due to your death during the accumulation phase. Some contracts require
that we be notified of your death, or that the withdrawal be taken, within
six months of the death); and/or
(c) When the Fixed Plus Account value is $5,000 or less (lower amounts may
apply under some contracts). Most contracts also require that no
withdrawals, transfers, loans or elections of income phase payment options
have been made from the account within the prior 12 months (or, under some
contracts, within the prior calendar year).
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Additionally, under certain contracts, we will waive the five-payment full
withdrawal provision due to one or more of the following:
1. Due to financial hardship or hardship resulting from an unforeseeable
emergency, as defined by the Tax Code and regulations thereunder if all of
the following conditions are met:
> The hardship is certified by the employer;
> The amount is paid directly to you; and
> The amount paid for all withdrawals due to hardship during the previous
12-month period does not exceed 10% (20% under some contracts) of the average
value of your account(s) and all other accounts under the relevant contract
during that same period.
2. For any in-service distributions permitted by the plan and the following
conditions are met:
> The distribution has been certified by the employer;
> The amount distributed is paid directly to you; and
> The amount paid for all such withdrawals during the previous 12-months does
not exceed a given percentage (stated in the contract) of the average value
of all your accounts and all other accounts under the relevant contract
during the same period.
3. Due to your separation from service with the employer, provided that all the
following apply*:
> The employer certifies that you have separated from service;
> The amount withdrawn is paid directly to you (under some contracts it must be
paid directly to you only if you withdraw the amounts more than one year
after separation); and
> Under most contracts, if the amount paid for all partial and full withdrawals
due to separation from service during the previous 12-month period does not
exceed 20% of the average value of all your account(s) and all other accounts
under the relevant contract during that same period.
4. If you are at least age 59 1/2 and have completed nine payment periods.
5. If we terminate your account based on our right to do so for accounts below
a certain value (usually $5,000 or less; lower amounts may apply under some
contracts).
6. Additionally, we may allow other waivers of the five installment payout for
full withdrawals to participants in certain plans. You can determine what
additional waivers, if any, apply to you by referring to the contract or
certificate.
Charges. We do not make deductions from amounts in the Fixed Plus Account to
cover mortality and expense risks. We consider these risks when determining the
credited rate.
Transfers. The contract holder or you, if allowed by the plan, may transfer 20%
of your account value held in the Fixed Plus Account in each 12-month period or
during each calendar year, depending upon the terms of the contract. We
determine the amount eligible for transfer on the day we receive a transfer
request in good order at our Home Office, or under some contracts, as of the
January 1st preceding the transfer request. We will reduce amounts allowed for
transfer by any Fixed Plus Account withdrawals, transfers, loans or amounts
applied to income phase payment options during the prior 12 months (or, under
some contracts, during the prior calendar year). Under most contracts, in
calculating the percentage limit on transfers, we reserve the right to include
payments made due to the election of any of the systematic distribution
options. We will waive the percentage limit on transfers when the value in the
Fixed Plus Account is $1,000 or less ($2,000 or less under some contracts).
Under some contracts, if you transfer 20% of your account value held in the
Fixed Plus Account in each of four consecutive 12-month periods, you may
transfer the remaining balance in the succeeding 12-month period provided you
do not allocate any amount to or transfer any other amount from the Fixed Plus
Account during
- -----------------
* Instead of the provisions under number 3 above, some contracts waive the
five-payment full withdrawal provision for separation from service if all of
the following apply:
> The hardship is certified by the employer;
> We receive the withdrawal request within 60 days of the date of separation;
and
> You pay a 3% charge based on the entire Fixed Plus Account value.
If you instead choose to have your payout in five annual installments as
described above, then we will not assess the charge.
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the five-year period. The 20% amount available to transfer under this provision
will be reduced by any amount transferred, taken as a loan or applied to income
phase payment options within the 12-month period preceding the first 20%
transfer. Also, we may reduce it for payments we made from your Fixed Plus
Account value under any systematic distribution option.
Income Phase. Amounts accumulating under the Fixed Plus Account can be
transferred to subaccounts to fund variable payments during the income phase.
Availability of subaccounts may vary during the income phase. Some contracts do
not permit Fixed Plus Account values to fund nonlifetime income options with
variable payments.
Contract Loans. If permitted under the plan, loans may be made from account
values held in the Fixed Plus Account. See the loan agreement for a description
of the amount available and possible consequences upon loan default if Fixed
Plus Account values are used for a loan.
Transfer Credits. The Company provides a transfer credit in certain
circumstances. See "Purchase--Transfer Credits." The transfer credit is a
specified percentage of the assets transferred to the Company under a contract
that remain in the accounts for the period of time specified by the Company,
plus the interest that would have been credited had that amount been deposited
in the Fixed Plus Account on the first business day of the calendar month
following its calculation. We apply the transfer credit to the current value
held in the Fixed Plus Account.
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Appendix IV
Employee Appointment of Employer as Agent
Under an Annuity Contract
- --------------------------------------------------------------------------------
For Plans under Section 403(b), 401 or 403(a) of the Code (except voluntary
Section 403(b) Plans)
================================================================================
My employer has adopted a plan under Internal Revenue Code Sections 403(b),
401(a)/401(k) or 403(a) ("Plan") and has purchased an Aetna Life Insurance and
Annuity Company ("Company") group variable annuity contract ("Contract") as the
funding vehicle. Contributions under this Plan will be made by me through
salary reduction to an Employee Account, and by my employer to an Employer
Account.
By electing to participate in my employer's Plan, I voluntarily appoint my
employer, who is the Contract Holder, as my agent for the purposes of all
transactions under the Contract in accordance with the terms of the Plan. The
Company is not a party to the Plan and does not interpret the Plan provisions.
As a Participant in the Plan, I understand and agree to the following terms and
conditions:
> I own the value of my Employee Account subject to the restrictions of
Sections 403(b), 401(a)/401(k) or 403(a) and the terms of the Plan. Subject
to the terms of the vesting schedule in the Plan and the restrictions of
Sections 403(b), 401(a)/401(k) or 403(a), I have ownership in the value of my
Employer Account.
> I understand that the Company will process transactions only with my
employer's written direction to the Company. I agree to be bound by my
employer's interpretation of the Plan provisions and its written direction to
the Company.
> My employer may permit me to make investment selections under the Employee
Account and/or the Employer Account directly with the Company under the terms
of the Contract. Without my employer's written permission, I will be unable
to make any investment selections under the Contract.
> On my behalf, my employer may request a loan in accordance with the terms of
the Contract and the provisions of the Plan. The Company will make payment of
the loan amount directly to me. I will be responsible for making repayments
directly to the Company in a timely manner.
> In the event of my death, my employer is the named Beneficiary under the
terms of the Contract. I have the right to name a personal Beneficiary as
determined under the terms of the Plan and file that Beneficiary election
with my employer. It is my employer's responsibility to direct the Company to
properly pay any death benefits.
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Appendix V
Fund Descriptions
- --------------------------------------------------------------------------------
The investment results of the mutual funds (funds) are likely to differ
significantly and there is no assurance that any of the funds will achieve
their respective investment objectives. Shares of the funds will rise and fall
in value and you could lose money by investing in the funds. Investments in the
funds are not bank deposits and are not insured or guaranteed by the Federal
Deposit Insurance Corporation or any other government agency. Except as noted,
all funds are diversified, as defined under the Investment Company Act of 1940.
>Aetna Balanced VP, Inc. seeks to maximize investment return, consistent with
reasonable safety of principal by investing in a diversified portfolio of one
or more of the following asset classes: stocks, bonds, and cash equivalents,
based on the investment adviser's judgment of which of those sectors or mix
thereof offers the best investment prospects.(1)
>Aetna Income Shares d/b/a Aetna Bond VP seeks to maximize total return,
consistent with reasonable risk, through investments in a diversified
portfolio consisting primarily of debt securities. It is anticipated that
capital appreciation and investment income will both be major factors in
achieving total return.(1)
>Aetna Variable Fund d/b/a Aetna Growth and Income VP seeks to maximize total
return through investments in a diversified portfolio of common stocks and
securities convertible into common stock. It is anticipated that capital
appreciation and investment income will both be major factors in achieving
total return.(1)
>Aetna Variable Encore Fund d/b/a Aetna Money Market VP seeks to provide high
current return, consistent with preservation of capital and liquidity, through
investment in high-quality money market instruments. An investment in the fund
is neither insured nor guaranteed by the U.S. Government.(1)
>Aetna Generation Portfolios, Inc.--Aetna Ascent VP seeks to provide capital
appreciation. The Portfolio is managed for investors who generally have an
investment horizon exceeding 15 years and who have a high level of risk
tolerance.(1)
>Aetna Generation Portfolios, Inc.--Aetna Crossroads VP seeks to provide total
return (i.e., income and capital appreciation, both realized and unrealized).
The Portfolio is managed for investors who generally have an investment
horizon exceeding 10 years and who have a moderate level of risk tolerance.(1)
>Aetna Generation Portfolios, Inc.--Aetna Legacy VP seeks to provide total
return consistent with preservation of capital. The Portfolio is managed for
investors who generally have an investment horizon exceeding five years and
who have a low level of risk tolerance.(1)
>Aetna Variable Portfolios, Inc.--Aetna Growth VP seeks growth of capital
through investment in a diversified portfolio consisting primarily of common
stocks and securities convertible into common stocks believed to offer growth
potential.(1)
>Aetna Variable Portfolios, Inc.--Aetna High Yield VP seeks high current income
and growth of capital primarily through investment in a diversified portfolio
of fixed-income securities rated lower than BBB- by Standard and Poor's
Corporation or lower than Baa3 by Moody's Investors Service, Inc.(1)
>Aetna Variable Portfolios, Inc.--Aetna Index Plus Large Cap VP seeks to
outperform the total return performance of the Standard & Poor's 500 Composite
Index (S&P 500), while maintaining a market level of risk.(1)
>Aetna Variable Portfolios, Inc.--Aetna Index Plus Mid Cap VP seeks to
outperform the total return performance of the Standard & Poor's MidCap 400
Index (S&P 400), while maintaining a market level of risk.(1)
>Aetna Variable Portfolios, Inc.--Aetna Index Plus Small Cap VP seeks to
outperform the total return performance of the Standard & Poor's SmallCap 600
Index (S&P 600), while maintaining a market level of risk.(1)
>Aetna Variable Portfolios, Inc.--Aetna International VP seeks long-term
capital growth primarily through investment in a diversified portfolio of
common stocks principally traded in countries outside of the United States.
Aetna International VP will not target any given level of current income.(1)
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>Aetna Variable Portfolios, Inc.--Aetna Real Estate Securities VP seeks maximum
total return primarily through investment in a diversified portfolio of equity
securities of real estate companies, the majority of which are real estate
investment trusts (REITs).(1)
>Aetna Variable Portfolios, Inc.--Aetna Small Company VP seeks growth of
capital primarily through investment in a diversified portfolio of common
stocks and securities convertible into common stocks of companies with smaller
market capitalizations.(1)
>Aetna Variable Portfolios, Inc.--Aetna Technology VP seeks long-term capital
appreciation.(1)(a)
>Aetna Variable Portfolios, Inc.--Aetna Value Opportunity VP seeks growth of
capital primarily through investment in a diversified portfolio of common
stocks and securities convertible into common stock.(1)
>AIM V.I. Capital Appreciation Fund seeks growth of capital through investment
in common stocks, with emphasis on medium- and small-sized growth
companies.(2)
>AIM V.I. Growth Fund seeks growth of capital primarily by investing in
seasoned and better capitalized companies considered to have strong earnings
momentum.(2)
>AIM V.I. Growth and Income Fund seeks growth of capital with a secondary
objective of current income.(2)
>AIM V.I. Value Fund seeks to achieve long-term growth of capital by investing
primarily in equity securities judged by the fund's investment adviser to be
undervalued relative to the investment adviser's appraisal of the current or
projected earnings of the companies issuing the securities, or relative to
current market values of assets owned by the companies issuing the securities
or relative to the equity market generally. Income is a secondary
objective.(2)
>Calvert Social Balanced Portfolio is a nondiversified portfolio that seeks to
achieve a competitive total return through an actively managed portfolio of
stocks, bonds, and money market instruments which offer income and capital
growth opportunity and which satisfy the investment and social criteria
established for the Portfolio.(3)(a)
>DEM[Reg TM] Equity Fund (Institutional Shares) seeks to provide aggressive
long-term growth through capital appreciation.(4)
>Fidelity Variable Insurance Products Fund Equity-Income Portfolio seeks
reasonable income. The fund will also consider the potential for capital
appreciation. The fund seeks a yield which exceeds the composite yield on the
securities comprising the S&P 500.(5)
>Fidelity Variable Insurance Products Fund-- Growth Portfolio seeks capital
appreciation by investing primarily in common stocks of companies the
investment adviser believes have above-average growth potential.(5)
>Fidelity Variable Insurance Products Fund-- Overseas Portfolio seeks long-term
growth of capital by investing in foreign securities, primarily in common
stocks.(5)(a)
>Fidelity Variable Insurance Products Fund II-- Contrafund[Reg TM] Portfolio
seeks long term capital appreciation by investing primarily in common stocks of
companies whose value the investment adviser believes is not fully recognized
by the public.(5)(b)
>Janus Aspen Series--Aggressive Growth Portfolio is a nondiversified portfolio
that seeks long-term growth of capital. The Portfolio pursues its investment
objective by investing primarily in common stocks selected for their growth
potential, and normally invests at least 50% of its equity assets in
medium-sized companies. Medium-sized companies are those whose market
capitalizations at the time of investment fall within the range of companies
in the S&P MidCap 400 Index. Market capitalization is a commonly used measure
of the size and value of a company. The market capitalizations within the
Index will vary, but as of December 31, 1999, they ranged from approximately
$170 million to $37 billion.(6)
>Janus Aspen Series--Balanced Portfolio seeks long-term capital growth,
consistent with preservation of capital and balanced by current income. The
Portfolio pursues its investment objective by normally investing 40%-60% of
its assets in securities selected primarily for their growth potential and
40%-60% of its assets in securities selected primarily for their income
potential. This Portfolio normally invests at least 25% of its assets in
fixed-income securities.(6)
57
<PAGE>
>Janus Aspen Series--Flexible Income Portfolio seeks to obtain maximum total
return, consistent with preservation of capital. The Portfolio pursues its
investment objective by primarily investing in a wide variety of
income-producing securities such as corporate bonds and notes, government
securities and preferred stock. As a fundamental policy, the Portfolio will
invest at least 80% of its assets in income-producing securities. The
Portfolio may own an unlimited amount of high-yield/high-risk securities, and
these may be a big part of the portfolio. This Portfolio generates total
return from a combination of current income and capital appreciation, but
income is usually the dominant portion.(6)
>Janus Aspen Series--Growth Portfolio seeks long-term growth of capital in a
manner consistent with the preservation of capital. The Portfolio pursues its
investment objective by investing primarily in common stocks selected for their
growth potential. Although the Portfolio can invest in companies of any size,
it generally invests in larger, more established issuers.(6)
>Janus Aspen Series--Worldwide Growth Portfolio seeks long-term growth of
capital in a manner consistent with the preservation of capital. The Portfolio
pursues its investment objective by investing primarily in common stocks of
companies of any size throughout the world. The Portfolio normally invests in
issuers from at least five different countries, including the United States.
The Portfolio may at times invest in fewer than five countries or even a
single country.(6)
>Janus Twenty Fund seeks long-term growth of capital by investing in a
nondiversified portfolio that normally concentrates its investments in a core
position of 20-30 common stocks.(6)
>Lexington Natural Resources Trust is a nondiversified portfolio that seeks
long-term growth of capital through investment primarily in common stocks of
companies which own or develop natural resources and other basic commodities
or supply goods and services to such companies.(7)(a)
>Oppenheimer Global Securities Fund/VA seeks long-term capital appreciation by
investing a substantial portion of its assets in securities of foreign
issuers, "growth-type" companies, cyclical industries, and special situations
which are considered to have appreciation possibilities.(8)
>Oppenheimer Strategic Bond Fund/VA seeks a high level of current income
principally derived from interest on debt securities and seeks to enhance such
income by writing covered call options on debt securities.(8)
>Portfolio Partners, Inc. (PPI)--MFS Capital Opportunities Portfolio (formerly
known as PPI MFS Value Equity Portfolio) seeks capital appreciation.(9)(a)
>Portfolio Partners, Inc. (PPI)--MFS Emerging Equities Portfolio seeks
long-term growth of capital. (9)(a)
>Portfolio Partners, Inc. (PPI)--MFS Research Growth Portfolio seeks long-term
growth of capital and future income.(9)(a)
>Portfolio Partners, Inc. (PPI)--Scudder International Growth Portfolio seeks
long-term growth of capital.(9)(b)
>Portfolio Partners, Inc. (PPI)--T. Rowe Price Growth Equity Portfolio seeks
long-term capital growth, and secondarily, increasing dividend income. (9)(c)
Investment Adviser:
(1) Investment Adviser: Aeltus Investment Management, Inc.
(a) Elijah Asset Management, LLC (subadviser)
(2) Investment Adviser: A I M Advisors, Inc.
(3) Investment Adviser: Calvert Asset Management Company, Inc.
(a) NCM Capital Management, Inc. (subadviser)
(4) Chapman Capital Management, Inc.
(5) Investment Adviser: Fidelity Management & Research Company
(a) Fidelity Management & Research (U.K.) Inc. (subadviser)
Fidelity Management & Research Far East Inc. (subadviser)
Fidelity International Investment Advisors (subadviser)
Fidelity International Investment Advisors (U.K.) Limited
(subadviser)
Fidelity Investments Japan Limited (subadviser)
(b) Fidelity Management & Research (U.K.) Inc. (subadviser)
Fidelity Management & Research Far East Inc. (subadviser)
Fidelity Investments Japan Limited (subadviser)
(6) Investment Adviser: Janus Capital Corporation
(7) Investment Adviser: Lexington Management Corporation
(a) Market Systems Research Advisors, Inc. (subadviser)
(8) Investment Adviser: OppenheimerFunds, Inc.
(9) Investment Adviser: Aetna Life Insurance and Annuity Company
(a) Massachusetts Financial Services Company (subadviser)
(b) Scudder Kemper Investments, Inc. (subadviser)
(c) T. Rowe Price Associates, Inc. (subadviser)
58
<PAGE>
Appendix VI
Condensed Financial Information
- --------------------------------------------------------------------------------
TABLE OF CONTENTS
<TABLE>
<S> <C>
Table I--For Contracts Issued Under 403(b), 401(a)
and 401(k) Plans with Total Separate Account Charges of
0.40%, 0.45%, and 0.50% ....................................... 61
Table II--For Contracts Issued Under 403(b), 401(a)
and 401(k) Plans with Total Separate Account Charges of
0.55%, 0.65%, and 0.70% ....................................... 64
Table III--For Contracts Issued Under 403(b), 401(a)
and 401(k) Plans with Total Separate Account Charges of
0.75%, 0.80%, and 0.85% ....................................... 67
Table IV--For Contracts Issued Under 403(b), 401(a)
and 401(k) Plans with Total Separate Account Charges of
0.90% and 0.95% ............................................... 70
Table V--For Contracts Issued Under 403(b), 401(a)
and 401(k) Plans with Total Separate Account Charges of
1.00% ......................................................... 74
Table VI--For Contracts Issued Under 403(b), 401(a)
and 401(k) Plans with Total Separate Account Charges of
1.05% and 1.10% ............................................... 78
Table VII--For Contracts Issued Under 403(b), 401(a)
and 401(k) Plans with Total Separate Account Charges of
1.15% ......................................................... 82
Table VIII--For Contracts Issued Under 403(b), 401(a)
and 401(k) Plans with Total Separate Account Charges of
1.20% and Those Issued Since 1996 with Total Separate
Account Charges of 1.25% ...................................... 85
Table IX--For Contracts Issued Under 403(b), 401(a)
and 401(k) Plans with Total Separate Account Charges of
1.30% and 1.40% ............................................... 89
Table X--For Contracts Issued Under 403(b), 401(a)
and 401(k) Plans Since 1996 with Total Separate Account Charges
of 1.50% ...................................................... 92
Table XI--For Contracts Issued Under 403(b) Plans and
Deferred Compensation Plans with Total Separate Account
Charges of 1.25% .............................................. 95
Table XII--For Multiple Option Contracts Issued to
San Bernardino County and Macomb County with Total
Separate Account Charges of 1.25% ............................. 99
Table XIII--For Contracts Issued Under 403(b) Plans and
Deferred Compensation Plans with Total Separate Account
Charges of 1.50% (including a 0.25% Administrative Expense
Charge Beginning April 7, 1997) ............................... 103
Table XIV--For Contracts Containing Limits on Fees Issued
Under 403(b) Plans and Deferred Compensation Plans ............ 106
Table XV--For Deferred Compensation Contracts with
Total Separate Account Charges of 0.95% Effective
On January 15, 1996 ........................................... 108
Table XVI--For Deferred Compensation Contracts with
Total Separate Account Charges of 0.95% Effective
On May 25, 1996 ............................................... 112
</TABLE>
59
<PAGE>
Appendix VI
Condensed Financial Information (continued)
- --------------------------------------------------------------------------------
<TABLE>
<S> <C>
Table XVII--For Deferred Compensation Contracts with
Total Separate Account Charges of 0.95% Effective
On or After December 16, 1996 ......................... 116
Table XVIII--For Contracts Issued to Missouri Municipal
League Under Deferred Compensation Plans with
Total Separate Account Charges of 0.80% ............... 120
Table XIX--For Contracts Issued to Metropolitan Utilities
District Under Deferred Compensation Plans with
Total Separate Account Charges of 0.80% ............... 123
</TABLE>
60
<PAGE>
Condensed Financial Information
- --------------------------------------------------------------------------------
TABLE I
FOR CONTRACTS ISSUED UNDER 403(b), 401(a) AND 401(k) PLANS
WITH TOTAL SEPARATE ACCOUNT CHARGES OF 0.40%, 0.45%, AND 0.50%
(Selected data for accumulation units outstanding throughout each period)
================================================================================
The condensed financial information presented below for each of the periods in
the two-year period ended December 31, 1999 (as applicable), is derived from
the financial statements of the separate account, which have been audited by
KPMG LLP, independent auditors. The financial statements and the independent
auditors' report thereon for the year ended December 31, 1999 are included in
the Statement of Additional Information.
<TABLE>
<CAPTION>
0.40% Total Charges
--------------------------------
1999 1998
---- ----
<S> <C> <C>
AETNA ASCENT VP
Value at beginning of period $14.086 $13.239(1)
Value at end of period $16.043 $14.086
Number of accumulation units outstanding at end
of period 84,264 86,321
AETNA BALANCED VP, INC.
Value at beginning of period $15.331 $14.244(1)
Value at end of period $17.347 $15.331
Number of accumulation units outstanding at end
of period 720,935 653,272
AETNA BOND VP
Value at beginning of period $12.079 $11.893(1)
Value at end of period $11.942 $12.079
Number of accumulation units outstanding at end
of period 198,382 190,084
AETNA CROSSROADS VP
Value at beginning of period $13.628 $12.991(1)
Value at end of period $14.960 $13.628
Number of accumulation units outstanding at end
of period 62,563 51,878
AETNA GROWTH VP
Value at beginning of period $18.018 $15.200(1)
Value at end of period $24.222 $18.018
Number of accumulation units outstanding at end
of period 59,855 21,805
AETNA GROWTH AND INCOME VP
Value at beginning of period $16.747 $15.108(1)
Value at end of period $19.586 $16.747
Number of accumulation units outstanding at end
of period 2,978,733 2,888,622
AETNA HIGH YIELD VP
Value at beginning of period $9.238 $9.125(1)
Value at end of period $9.850 $9.238
Number of accumulation units outstanding at end
of period 2,049 1,146
AETNA INDEX PLUS LARGE CAP VP
Value at beginning of period $18.916 $16.874(1)
Value at end of period $23.418 $18.916
Number of accumulation units outstanding at end
of period 193,247 87,238
AETNA INDEX PLUS MID CAP VP
Value at beginning of period $10.921 $9.480(1)
Value at end of period $12.597 $10.921
Number of accumulation units outstanding at end
of period 2,808 1,187
AETNA INDEX PLUS SMALL CAP VP
Value at beginning of period $8.840 $8.071(1)
Value at end of period $9.754 $8.840
Number of accumulation units outstanding at end
of period 2,620 3,928
AETNA INTERNATIONAL VP
Value at beginning of period $10.059(9)
Value at end of period $14.760
Number of accumulation units outstanding at end
of period 1,480
AETNA LEGACY VP
Value at beginning of period $13.111 $12.598(1)
Value at end of period $13.986 $13.111
Number of accumulation units outstanding at end
of period 21,809 19,291
<CAPTION>
0.45% Total Charges 0.50% Total Charges
-------------------------------- ---------------------------
1999 1998 1999 1998
---- ---- ---- ----
<S> <C> <C> <C> <C>
AETNA ASCENT VP
Value at beginning of period $9.519 $9.146(2) $9.848 $10.475(3)
Value at end of period $10.836 $9.519 $11.205 $9.848
Number of accumulation units outstanding at end
of period 53,201 779 4,725 2,670
AETNA BALANCED VP, INC.
Value at beginning of period $10.747(4) $11.077 $10.369(5)
Value at end of period $12.064 $12.521 $11.077
Number of accumulation units outstanding at end
of period 80,717 307,534 310,846
AETNA BOND VP
Value at beginning of period $10.455(6) $10.662 $10.118(5)
Value at end of period $10.396 $10.530 $10.662
Number of accumulation units outstanding at end
of period 19,693 84,611 88,895
AETNA CROSSROADS VP
Value at beginning of period $9.800 $9.531(2) $10.086 $10.298(5)
Value at end of period $10.752 $9.800 $11.061 $10.086
Number of accumulation units outstanding at end
of period 111,369 731 1,386 1,127
AETNA GROWTH VP
Value at beginning of period $11.470 $10.444(2) $12.397 $10.479(5)
Value at end of period $15.412 $11.470 $16.649 $12.397
Number of accumulation units outstanding at end
of period 134,661 291 34,478 19,997
AETNA GROWTH AND INCOME VP
Value at beginning of period $10.152 $9.561(2) $10.665 $10.580(5)
Value at end of period $11.867 $10.152 $12.460 $10.665
Number of accumulation units outstanding at end
of period 348,478 1,119 674,275 719,561
AETNA HIGH YIELD VP
Value at beginning of period $9.743(7) $9.260 $9.961(3)
Value at end of period $9.912 $9.864 $9.260
Number of accumulation units outstanding at end
of period 68 2,779 834
AETNA INDEX PLUS LARGE CAP VP
Value at beginning of period $11.307 $10.639(2) $12.019 $10.708(5)
Value at end of period $13.991 $11.307 $14.865 $12.019
Number of accumulation units outstanding at end
of period 226,927 859 24,911 13,477
AETNA INDEX PLUS MID CAP VP
Value at beginning of period $10.889(6) $10.947 $10.050(3)
Value at end of period $12.916 $12.614 $10.947
Number of accumulation units outstanding at end
of period 2,661 3,621 2,662
AETNA INDEX PLUS SMALL CAP VP
Value at beginning of period $8.954(6) $8.861 $9.328(8)
Value at end of period $10.166 $9.768 $8.861
Number of accumulation units outstanding at end
of period 1,373 1,190 17
AETNA INTERNATIONAL VP
Value at beginning of period $9.567 $9.231(2) $9.815 $8.967(1)
Value at end of period $14.414 $9.567 $14.780 $9.815
Number of accumulation units outstanding at end
of period 19,616 61 1,029 562
AETNA LEGACY VP
Value at beginning of period $10.103(4) $10.293 $10.115(8)
Value at end of period $10.738 $10.968 $10.293
Number of accumulation units outstanding at end
of period 32,691 495 165
</TABLE>
61
<PAGE>
Condensed Financial Information (continued)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
0.40% Total Charges
-----------------------------------
1999 1998
---- -----
<S> <C> <C>
AETNA MONEY MARKET VP
Value at beginning of period $11.225 $11.148(1)
Value at end of period $11.748 $11.225
Number of accumulation units outstanding at end
of period 271,583 107,285
AETNA REAL ESTATE SECURITIES VP
Value at beginning of period $8.898 $8.679(1)
Value at end of period $8.488 $8.898
Number of accumulation units outstanding at end
of period 2,267 1,099
AETNA SMALL COMPANY VP
Value at beginning of period $13.714 $12.820(1)
Value at end of period $17.873 $13.714
Number of accumulation units outstanding at end
of period 18,170 15,614
AETNA VALUE OPPORTUNITY VP
Value at beginning of period $16.125 $13.986(1)
Value at end of period $19.205 $16.125
Number of accumulation units outstanding at end
of period 12,434 11,799
AIM V.I. CAPITAL APPRECIATION FUND
Value at beginning of period $10.105(6)
Value at end of period $13.834
Number of accumulation units outstanding at end
of period 1,129
AIM V.I. GROWTH FUND
Value at beginning of period $10.158(6)
Value at end of period $12.140
Number of accumulation units outstanding at end
of period 114
AIM V.I. GROWTH AND INCOME FUND
Value at beginning of period $10.351(10)
Value at end of period $11.785
Number of accumulation units outstanding at end
of period 426
AIM V.I. VALUE FUND
Value at beginning of period $10.177(10)
Value at end of period $11.574
Number of accumulation units outstanding at end
of period 1,916
CALVERT SOCIAL BALANCED PORTFOLIO
Value at beginning of period $14.976 $13.635(1)
Value at end of period $16.740 $14.976
Number of accumulation units outstanding at end
of period 40,498 38,218
FIDELITY VIP EQUITY-INCOME PORTFOLIO
Value at beginning of period $15.192 $14.267(1)
Value at end of period $16.089 $15.192
Number of accumulation units outstanding at end
of period 114,725 54,320
FIDELITY VIP GROWTH PORTFOLIO
Value at beginning of period $17.525 $15.510(1)
Value at end of period $23.989 $17.525
Number of accumulation units outstanding at end
of period 325,063 128,518
FIDELITY VIP OVERSEAS PORTFOLIO
Value at beginning of period $13.170 $12.178(1)
Value at end of period $18.709 $13.170
Number of accumulation units outstanding at end
of period 30,213 10,817
FIDELITY VIP II CONTRAFUND[Reg TM] PORTFOLIO
Value at beginning of period $17.813 $15.219(1)
Value at end of period $22.045 $17.813
Number of accumulation units outstanding at end
of period 239,028 197,022
JANUS ASPEN AGGRESSIVE GROWTH
PORTFOLIO
Value at beginning of period $14.125 $11.663(1)
Value at end of period $31.711 $14.125
Number of accumulation units outstanding at end
of period 405,725 198,264
JANUS ASPEN BALANCED PORTFOLIO
Value at beginning of period $17.878 $15.614(1)
Value at end of period $22.571 $17.878
Number of accumulation units outstanding at end
of period 103,517 39,424
<CAPTION>
0.45% Total Charges 0.50% Total Charges
-------------------------------- ---------------------------
1999 1998 1999 1998
---- ---- ---- ----
<S> <C> <C> <C> <C>
AETNA MONEY MARKET VP
Value at beginning of period $10.706(7) $10.399 $10.050(5)
Value at end of period $10.777 $10.872 $10.399
Number of accumulation units outstanding at end
of period 41,969 70,539 34,355
AETNA REAL ESTATE SECURITIES VP
Value at beginning of period $8.436(7) $8.919 $9.655(8)
Value at end of period $8.544 8.500 $8.919
Number of accumulation units outstanding at end
of period 33 0 649
AETNA SMALL COMPANY VP
Value at beginning of period $9.176 $8.583(2) $9.312 $10.719(5)
Value at end of period $11.953 $9.176 $12.124 $9.312
Number of accumulation units outstanding at end
of period 63,697 318 7,763 7,541
AETNA VALUE OPPORTUNITY VP
Value at beginning of period $12.467(7) $11.369 $10.508(5)
Value at end of period $12.665 $13.527 $11.369
Number of accumulation units outstanding at end
of period 10,293 2,750 993
AIM V.I. CAPITAL APPRECIATION FUND
Value at beginning of period
Value at end of period
Number of accumulation units outstanding at end
of period
AIM V.I. GROWTH FUND
Value at beginning of period
Value at end of period
Number of accumulation units outstanding at end
of period
AIM V.I. GROWTH AND INCOME FUND
Value at beginning of period $10.518(7)
Value at end of period $11.781
Number of accumulation units outstanding at end
of period 882
AIM V.I. VALUE FUND
Value at beginning of period $9.753(6)
Value at end of period $11.570
Number of accumulation units outstanding at end
of period 8,954
CALVERT SOCIAL BALANCED PORTFOLIO
Value at beginning of period $10.714 $10.217(2) $10.966 $10.377(5)
Value at end of period $11.970 $10.714 $12.245 $10.966
Number of accumulation units outstanding at end
of period 26,121 553 54,141 50,868
FIDELITY VIP EQUITY-INCOME PORTFOLIO
Value at beginning of period $9.968 $9.516(2) $10.363 $10.522(5)
Value at end of period $10.552 $9.968 $10.964 $10.363
Number of accumulation units outstanding at end
of period 110,939 519 15,333 6,791
FIDELITY VIP GROWTH PORTFOLIO
Value at beginning of period $13.493(6) $12.779 $10.651(5)
Value at end of period $16.655 $17.475 $12.779
Number of accumulation units outstanding at end
of period 65,561 49,321 18,614
FIDELITY VIP OVERSEAS PORTFOLIO
Value at beginning of period $10.647(6) $10.183 $10.774(5)
Value at end of period $13.410 $14.451 $10.183
Number of accumulation units outstanding at end
of period 8,158 636 251
FIDELITY VIP II CONTRAFUND[Reg TM] PORTFOLIO
Value at beginning of period $11.475 $10.553(2) $11.985 $10.673(5)
Value at end of period $14.194 $11.475 $14.817 $11.985
Number of accumulation units outstanding at end
of period 268,570 1,754 22,846 8,618
JANUS ASPEN AGGRESSIVE GROWTH
PORTFOLIO
Value at beginning of period $17.095(6) $12.541 $10.570(5)
Value at end of period $27.222 $28.128 $12.541
Number of accumulation units outstanding at end
of period 153,109 200,051 134,432
JANUS ASPEN BALANCED PORTFOLIO
Value at beginning of period $11.816 $10.945(2) $12.415 $10.615(5)
Value at end of period $14.910 $11.816 $15.658 $12.415
Number of accumulation units outstanding at end
of period 224,105 612 70,956 30,062
</TABLE>
62
<PAGE>
Condensed Financial Information (continued)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
0.40% Total Charges 0.45% Total Charges
------------------- -------------------
1999 1998 1999 1998
---- ---- ---- ----
<S> <C> <C> <C> <C>
JANUS ASPEN FLEXIBLE INCOME PORTFOLIO
Value at beginning of period $13.053 $12.743(1) $10.446 $10.457(2)
Value at end of period $13.210 $13.053 $10.566 $10.446
Number of accumulation units outstanding at end
of period 20,171 21,374 42,021 82
JANUS ASPEN GROWTH PORTFOLIO
Value at beginning of period $17.807 $14.790(1) $11.979(4)
Value at end of period $25.537 $17.807 $16.753
Number of accumulation units outstanding at end
of period 156,805 73,901 233,330
JANUS ASPEN WORLDWIDE GROWTH
PORTFOLIO
Value at beginning of period $17.582 $15.344(1) $10.235 $9.630(2)
Value at end of period $28.797 $17.582 $16.757 $10.235
Number of accumulation units outstanding at end
of period 531,184 383,490 466,808 1,186
LEXINGTON NATURAL RESOURCES TRUST
Value at beginning of period $9.626 $9.754(1) $8.644(7)
Value at end of period $10.939 $9.626 $8.758
Number of accumulation units outstanding at end
of period 8,856 12,237 4,241
OPPENHEIMER GLOBAL SECURITIES FUND/VA
Value at beginning of period $10.047 $9.004(1) $13.162(7)
Value at end of period $15.859 $10.047 $15.849
Number of accumulation units outstanding at end
of period 5,065 1,564 27
OPPENHEIMER STRATEGIC BOND FUND/VA
Value at beginning of period $9.923 $9.695(1) $9.953 $9.975(2)
Value at end of period $10.162 $9.923 $10.188 $9.953
Number of accumulation units outstanding at end
of period 1,576 1,513 6,623 575
PPI MFS CAPITAL OPPORTUNITIES
PORTFOLIO
Value at beginning of period $15.676 $14.188(1) $10.673 $9.984(2)
Value at end of period $23.231 $15.676 $15.809 $10.673
Number of accumulation units outstanding at end
of period 44,936 36,644 36,972 192
PPI MFS EMERGING EQUITIES PORTFOLIO
Value at beginning of period $12.776 $10.705(1) $11.002 $10.094(2)
Value at end of period $19.199 $12.776 $16.525 $11.002
Number of accumulation units outstanding at end
of period 413,847 339,956 128,507 371
PPI MFS RESEARCH GROWTH PORTFOLIO
Value at beginning of period $10.641 $9.362(1) $10.577 $9.862(2)
Value at end of period $13.146 $10.641 $13.061 $10.577
Number of accumulation units outstanding at end
of period 323,178 331,958 50,332 473
PPI SCUDDER INTERNATIONAL GROWTH
PORTFOLIO
Value at beginning of period $13.602 $12.570(1) $11.701(6)
Value at end of period $21.461 $13.602 $15.452
Number of accumulation units outstanding at end
of period 196,446 168,912 42,208
PPI T. ROWE PRICE GROWTH PORTFOLIO
Value at beginning of period $16.863 $15.042(1) $11.057 $10.302(2)
Value at end of period $20.546 $16.863 $13.464 $11.057
Number of accumulation units outstanding at end
of period 165,483 169,615 79,777 817
<CAPTION>
0.50% Total Charges
-------------------
1999 1998
---- ----
<S> <C> <C>
JANUS ASPEN FLEXIBLE INCOME PORTFOLIO
Value at beginning of period $10.640 $10.186(5)
Value at end of period $10.757 $10.640
Number of accumulation units outstanding at end
of period 24,751 13,364
JANUS ASPEN GROWTH PORTFOLIO
Value at beginning of period $12.391 $10.286(5)
Value at end of period $17.752 $12.391
Number of accumulation units outstanding at end
of period 36,959 7,785
JANUS ASPEN WORLDWIDE GROWTH
PORTFOLIO
Value at beginning of period $11.485 $10.980(5)
Value at end of period $18.792 $11.485
Number of accumulation units outstanding at end
of period 68,055 37,288
LEXINGTON NATURAL RESOURCES TRUST
Value at beginning of period
Value at end of period
Number of accumulation units outstanding at end
of period
OPPENHEIMER GLOBAL SECURITIES FUND/VA
Value at beginning of period $10.070 $10.131(11)
Value at end of period $15.881 $10.070
Number of accumulation units outstanding at end
of period 786 180
OPPENHEIMER STRATEGIC BOND FUND/VA
Value at beginning of period $9.946 $9.995(3)
Value at end of period $10.176 $9.946
Number of accumulation units outstanding at end
of period 5 14
PPI MFS CAPITAL OPPORTUNITIES
PORTFOLIO
Value at beginning of period $11.320 $10.726(5)
Value at end of period $16.760 $11.320
Number of accumulation units outstanding at end
of period 69,113 71,605
PPI MFS EMERGING EQUITIES PORTFOLIO
Value at beginning of period $10.841 $9.990(5)
Value at end of period $16.274 $10.841
Number of accumulation units outstanding at end
of period 181,468 178,398
PPI MFS RESEARCH GROWTH PORTFOLIO
Value at beginning of period $11.127 $10.490(5)
Value at end of period $13.733 $11.127
Number of accumulation units outstanding at end
of period 72,064 79,769
PPI SCUDDER INTERNATIONAL GROWTH
PORTFOLIO
Value at beginning of period $10.797 $10.711(5)
Value at end of period $17.018 $10.797
Number of accumulation units outstanding at end
of period 115,575 113,511
PPI T. ROWE PRICE GROWTH PORTFOLIO
Value at beginning of period $11.551 $10.256(5)
Value at end of period $14.059 $11.551
Number of accumulation units outstanding at end
of period 6,942 4,869
</TABLE>
- -----------------
(1) Funds were first received in this option during November 1998.
(2) Funds were first received in this option during December 1998.
(3) Funds were first received in this option during May 1998.
(4) Funds were received in this option during January 1999.
(5) Funds were first received in this option during April 1998.
(6) Funds were received in this option during September 1999.
(7) Funds were received in this option during November 1999.
(8) Funds were first received in this option during June 1998.
(9) Funds were received in this option during February 1999.
(10) Funds were received in this option during July 1999.
(11) Funds were first received in this option during July 1998.
63
<PAGE>
Condensed Financial Information
- --------------------------------------------------------------------------------
TABLE II
FOR CONTRACTS ISSUED UNDER 403(b), 401(a) AND 401(k) PLANS
WITH TOTAL SEPARATE ACCOUNT CHARGES OF 0.55%, 0.65%, AND 0.70%
(Selected data for accumulation units outstanding throughout each period)
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
The condensed financial information presented below for the period ended
December 31, 1999 (as applicable), is derived from the financial statements of
the separate account, which have been audited by KPMG LLP, independent auditors.
The financial statements and the independent auditors' report thereon for the
year ended December 31, 1999 are included in the Statement of Additional
Information.
<TABLE>
<CAPTION>
0.55% Total Charges 0.65% Total Charges 0.70% Total Charges
------------------- ------------------- -------------------
1999 1999 1999
---- ---- ----
<S> <C> <C> <C>
AETNA ASCENT VP
Value at beginning of period $9.864(1) $9.484(2) $10.056(3)
Value at end of period $10.819 $10.802 $10.793
Number of accumulation units outstanding at end
of period 3,650 184,741 7,803
AETNA BALANCED VP, INC.
Value at beginning of period $11.266(1) $11.183(2) $11.192(3)
Value at end of period $12.045 $12.026 $12.016
Number of accumulation units outstanding at end
of period 237,142 119,529 96,082
AETNA BOND VP
Value at beginning of period $10.419(1) $10.594(2) $10.447(3)
Value at end of period $10.380 $10.363 $10.355
Number of accumulation units outstanding at end
of period 31,523 113,547 36,755
AETNA CROSSROADS VP
Value at beginning of period $10.032(1) $9.799(2) $10.178(3)
Value at end of period $10.735 $10.718 $10.709
Number of accumulation units outstanding at end
of period 3,809 90,629 2,882
AETNA GROWTH VP
Value at beginning of period $12.980(1) $12.835(4) $12.378(3)
Value at end of period $15.387 $15.362 $15.350
Number of accumulation units outstanding at end
of period 12,695 17,762 9,291
AETNA GROWTH AND INCOME VP
Value at beginning of period $10.922(1) $10.867(2) $10.936(3)
Value at end of period $11.847 $11.828 $11.819
Number of accumulation units outstanding at end
of period 1,191,861 479,213 296,167
AETNA HIGH YIELD VP
Value at beginning of period $9.577(1) $9.554(4) $9.827(3)
Value at end of period $9.896 $9.880 $9.872
Number of accumulation units outstanding at end
of period 129 215 76
AETNA INDEX PLUS LARGE CAP VP
Value at beginning of period $12.633(1) $12.586(2) $12.362(3)
Value at end of period $13.968 $13.946 $13.935
Number of accumulation units outstanding at end
of period 107,027 198,941 34,700
AETNA INDEX PLUS MID CAP VP
Value at beginning of period $11.478(1) $11.204(4) $11.323(3)
Value at end of period $12.896 $12.875 $12.864
Number of accumulation units outstanding at end
of period 60 5,592 285
AETNA INDEX PLUS SMALL CAP VP
Value at beginning of period $9.235(1) $8.416(2) $8.998(5)
Value at end of period $10.150 $10.134 $10.126
Number of accumulation units outstanding at end
of period 70 40,166 42
AETNA INTERNATIONAL VP
Value at beginning of period $11.236(1) $11.021(4) $10.927(4)
Value at end of period $14.391 $14.367 $14.356
Number of accumulation units outstanding at end
of period 59 405 14
AETNA LEGACY VP
Value at beginning of period $10.273(1) $10.114(2) $10.364(3)
Value at end of period $10.721 $10.704 $10.695
Number of accumulation units outstanding at end
of period 22,643 62,233 834
</TABLE>
64
<PAGE>
Condensed Financial Information (continued)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
0.55% Total Charges 0.65% Total Charges 0.70% Total Charges
------------------- ------------------- -------------------
1999 1999 1999
---- ---- ----
<S> <C> <C> <C>
AETNA MONEY MARKET VP
Value at beginning of period $10.669(1) $10.407(2) $10.434(3)
Value at end of period $10.760 $10.742 $10.734
Number of accumulation units outstanding at end
of period 67,587 249,862 38,319
AETNA REAL ESTATE SECURITIES VP
Value at beginning of period $8.263(1) $8.621(5)
Value at end of period $8.517 $8.510
Number of accumulation units outstanding at end
of period 15 14
AETNA SMALL COMPANY VP
Value at beginning of period $9.996(1) $9.740(4) $9.503(3)
Value at end of period $11.933 $11.914 $11.904
Number of accumulation units outstanding at end
of period 17,509 8,502 3,486
AETNA VALUE OPPORTUNITY VP
Value at beginning of period $11.893(1) $11.196(2) $11.759(3)
Value at end of period $12.645 $12.625 $12.615
Number of accumulation units outstanding at end
of period 20,593 69,481 2,839
AIM V.I. CAPITAL APPRECIATION FUND
Value at beginning of period $10.908(1) $10.189(5)
Value at end of period $13.820 $13.805
Number of accumulation units outstanding at end
of period 48 82
AIM V.I. GROWTH FUND
Value at beginning of period $10.242(1) $10.100(4) $11.387(6)
Value at end of period $12.127 $12.119 $12.115
Number of accumulation units outstanding at end
of period 990 1,728 54
AIM V.I. GROWTH AND INCOME FUND
Value at beginning of period $10.229(1) $10.785(1) $9.404(5)
Value at end of period $11.773 $11.764 $11.760
Number of accumulation units outstanding at end
of period 880 17 41
AIM V.I. VALUE FUND
Value at beginning of period $10.242(1) $10.194(4) $9.661(5)
Value at end of period $11.562 $11.554 $11.550
Number of accumulation units outstanding at end
of period 203 733 80
CALVERT SOCIAL BALANCED PORTFOLIO
Value at beginning of period $11.207(1) $11.067(4) $11.025(3)
Value at end of period $11.951 $11.932 $11.922
Number of accumulation units outstanding at end
of period 13,438 3,322 3,736
FIDELITY VIP EQUITY-INCOME PORTFOLIO
Value at beginning of period $10.462(1) $10.691(2) $11.230(3)
Value at end of period $10.535 $10.518 $10.509
Number of accumulation units outstanding at end
of period 65,154 123,332 8,104
FIDELITY VIP GROWTH PORTFOLIO
Value at beginning of period $14.192(1) $13.816(2) $13.474(3)
Value at end of period $16.628 $16.601 $16.588
Number of accumulation units outstanding at end
of period 129,223 309,124 37,940
FIDELITY VIP OVERSEAS PORTFOLIO
Value at beginning of period $11.159(1) $10.023(2) $10.077(3)
Value at end of period $13.389 $13.367 $13.356
Number of accumulation units outstanding at end
of period 8,971 15,589 396
FIDELITY VIP II CONTRAFUND[Reg TM] PORTFOLIO
Value at beginning of period $12.452(1) $12.698(2) $12.471(3)
Value at end of period $14.171 $14.148 $14.137
Number of accumulation units outstanding at end
of period 119,841 276,641 19,120
JANUS ASPEN AGGRESSIVE GROWTH
PORTFOLIO
Value at beginning of period $19.683(1) $15.589(2) $15.319(3)
Value at end of period $27.178 $27.135 $27.113
Number of accumulation units outstanding at end
of period 112,798 216,673 49,337
JANUS ASPEN BALANCED PORTFOLIO
Value at beginning of period $13.489(1) $13.502(2) $13.144(3)
Value at end of period $14.886 $14.862 $14.850
Number of accumulation units outstanding at end
of period 104,837 251,840 7,041
</TABLE>
65
<PAGE>
Condensed Financial Information (continued)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
0.55% Total Charges 0.65% Total Charges 0.70% Total Charges
------------------- ------------------- -------------------
1999 1999 1999
---- ---- ----
<S> <C> <C> <C>
JANUS ASPEN FLEXIBLE INCOME
PORTFOLIO
Value at beginning of period $10.380(1) $10.622(2) $10.473(3)
Value at end of period $10.549 $10.532 $10.523
Number of accumulation units outstanding at end
of period 27,998 88,620 2,088
JANUS ASPEN GROWTH PORTFOLIO
Value at beginning of period $14.336(1) $14.246(4) $13.194(3)
Value at end of period $16.726 $16.699 $16.686
Number of accumulation units outstanding at end
of period 74,827 29,859 26,860
JANUS ASPEN WORLDWIDE GROWTH
PORTFOLIO
Value at beginning of period $12.638(1) $11.492(2) $11.151(3)
Value at end of period $16.730 $16.703 $16.689
Number of accumulation units outstanding at end
of period 177,086 237,116 31,925
LEXINGTON NATURAL RESOURCES TRUST
Value at beginning of period $8.255(1) $8.125(4) $9.037(3)
Value at end of period $8.744 $8.729 $8.722
Number of accumulation units outstanding at end
of period 4,257 2,246 2,018
OPPENHEIMER GLOBAL SECURITIES
FUND/VA
Value at beginning of period $12.055(1) $11.782(4) $14.516(6)
Value at end of period $15.823 $15.798 $15.785
Number of accumulation units outstanding at end
of period 371 137 58
OPPENHEIMER STRATEGIC BOND FUND/VA
Value at beginning of period $9.997(1) $9.942(4)
Value at end of period $10.172 $10.155
Number of accumulation units outstanding at end
of period 1,233 64
PPI MFS CAPITAL OPPORTUNITIES
PORTFOLIO
Value at beginning of period $12.844(1) $12.653(4) $11.997(3)
Value at end of period $15.783 $15.758 $15.745
Number of accumulation units outstanding at end
of period 51,669 14,720 4,667
PPI MFS EMERGING EQUITIES PORTFOLIO
Value at beginning of period $12.327(1) $10.880(2) $11.165(3)
Value at end of period $16.499 $16.472 $16.459
Number of accumulation units outstanding at end
of period 103,358 109,678 32,821
PPI MFS RESEARCH GROWTH PORTFOLIO
Value at beginning of period $11.303(1) $11.075(2) $11.020(3)
Value at end of period $13.040 $13.019 $13.008
Number of accumulation units outstanding at end
of period 54,854 89,183 22,796
PPI SCUDDER INTERNATIONAL GROWTH
PORTFOLIO
Value at beginning of period $12.322(1) $10.375(2) $10.603(3)
Value at end of period $15.427 $15.403 $15.390
Number of accumulation units outstanding at end
of period 60,619 24,792 12,199
PPI T. ROWE PRICE GROWTH EQUITY
PORTFOLIO
Value at beginning of period $11.814(1) $11.742(4) $11.790(3)
Value at end of period $13.443 $13.421 $13.410
Number of accumulation units outstanding at end
of period 26,870 17,657 17,647
</TABLE>
- -----------------
(1) Funds were first received in this option during November 1999.
(2) Funds were first received in this option during April 1999.
(3) Funds were first received in this option during May 1999.
(4) Funds were first received in this option during October 1999.
(5) Funds were first received in this option during September 1999.
(6) Funds were first received in this option during December 1999.
66
<PAGE>
Condensed Financial Information
- --------------------------------------------------------------------------------
TABLE III
FOR CONTRACTS ISSUED UNDER 403(b), 401(a) and 401(k) PLANS
WITH TOTAL SEPARATE ACCOUNT CHARGES OF 0.75%, 0.80%, AND 0.85%
(Selected data for accumulation units outstanding throughout each period)
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
The condensed financial information presented below for each of the periods in
the two-year period ended December 31, 1999 (as applicable), is derived from the
financial statements of the separate account, which have been audited by KPMG
LLP, independent auditors. The financial statements and the independent
auditors' report thereon for the year ended December 31, 1999 are included in
the Statement of Additional Information.
<TABLE>
<CAPTION>
0.75% Total Charges 0.80% Total Charges
------------------- -------------------
1999 1998 1999 1998
---- ---- ---- ----
<S> <C> <C> <C> <C>
AETNA ASCENT VP
Value at beginning of period $9.502 $9.913(1) $10.101 $10.604(2)
Value at end of period $10.784 $9.502 $11.458 $10.101
Number of accumulation units outstanding at end
of period 52,442 43,142 169,078 255,775
AETNA BALANCED VP, INC.
Value at beginning of period $10.648 $10.002(1) $11.358 $10.646(2)
Value at end of period $12.006 $10.648 $12.801 $11.358
Number of accumulation units outstanding at end
of period 194,625 183,347 3,380,638 3,962,527
AETNA BOND VP
Value at beginning of period $10.502 $10.058(1) $10.650 $10.157(2)
Value at end of period $10.346 $10.502 $10.487 $10.650
Number of accumulation units outstanding at end
of period 51,554 51,916 617,714 771,660
AETNA CROSSROADS VP
Value at beginning of period $9.782 $9.936(1) $10.312 $10.524(2)
Value at end of period $10.701 $9.782 $11.275 $10.312
Number of accumulation units outstanding at end
of period 67,538 62,144 93,911 213,970
AETNA GROWTH VP
Value at beginning of period $11.449 $9.925(1) $13.030 $11.326(2)
Value at end of period $15.338 $11.449 $17.447 $13.030
Number of accumulation units outstanding at end
of period 28,754 18,200 728,964 303,987
AETNA GROWTH AND INCOME VP
Value at beginning of period $10.133 $9.935(1) $11.108 $10.925(2)
Value at end of period $11.809 $10.133 $12.939 $11.108
Number of accumulation units outstanding at end
of period 806,180 773,713 13,348,490 15,809,881
AETNA HIGH YIELD VP
Value at beginning of period $9.284 $10.145(4) $9.241 $9.939(1)
Value at end of period $9.864 $9.284 $9.814 $9.241
Number of accumulation units outstanding at end
of period 98 0 6,652 15,411
AETNA INDEX PLUS LARGE CAP VP
Value at beginning of period $11.286 $10.015(1) $12.587 $11.117(2)
Value at end of period $13.923 $11.286 $15.521 $12.587
Number of accumulation units outstanding at end
of period 81,578 48,831 2,792,639 1,974,900
AETNA INDEX PLUS MID CAP VP
Value at beginning of period $11.183 $9.822(1) $10.925 $9.576(1)
Value at end of period $12.854 $11.183 $12.551 $10.925
Number of accumulation units outstanding at end
of period 3,959 1,623 50,227 80,312
AETNA INDEX PLUS SMALL CAP VP
Value at beginning of period $9.201 $9.642(1) $8.843 $9.269(1)
Value at end of period $10.117 $9.201 $9.718 $8.843
Number of accumulation units outstanding at end
of period 2,982 1,481 50,270 90,819
AETNA INTERNATIONAL VP
Value at beginning of period $9.550 $9.600(5) $9.795 $10.043(1)
Value at end of period $14.344 $9.550 $14.705 $9.795
Number of accumulation units outstanding at end
of period 134 7 43,135 45,801
AETNA LEGACY VP
Value at beginning of period $10.054 $9.977(1) $10.423 $10.359(2)
Value at end of period $10.686 $10.054 $11.073 $10.423
Number of accumulation units outstanding at end
of period 19,174 21,150 232,707 418,989
<CAPTION>
0.85% Total Charges
-------------------
1999 1998
---- ----
<S> <C> <C>
AETNA ASCENT VP
Value at beginning of period $14.113 $13.699(3)
Value at end of period $16.002 $14.113
Number of accumulation units outstanding at end
of period 150,454 70,991
AETNA BALANCED VP, INC.
Value at beginning of period $15.360 $13.327(3)
Value at end of period $17.303 $15.360
Number of accumulation units outstanding at end
of period 1,479,143 1,379,122
AETNA BOND VP
Value at beginning of period $12.102 $11.381(3)
Value at end of period $11.911 $12.102
Number of accumulation units outstanding at end
of period 637,752 654,765
AETNA CROSSROADS VP
Value at beginning of period $13.654 $13.063(3)
Value at end of period $14.921 $13.654
Number of accumulation units outstanding at end
of period 121,322 102,916
AETNA GROWTH VP
Value at beginning of period $18.036 $13.357(3)
Value at end of period $24.137 $18.036
Number of accumulation units outstanding at end
of period 65,690 24,240
AETNA GROWTH AND INCOME VP
Value at beginning of period $16.779 $14.694(3)
Value at end of period $19.535 $16.779
Number of accumulation units outstanding at end
of period 5,572,187 5,795,667
AETNA HIGH YIELD VP
Value at beginning of period $9.238 $9.899(5)
Value at end of period $9.806 $9.238
Number of accumulation units outstanding at end
of period 7,192 644
AETNA INDEX PLUS LARGE CAP VP
Value at beginning of period $18.945 $14.692(3)
Value at end of period $23.350 $18.945
Number of accumulation units outstanding at end
of period 611,611 459,428
AETNA INDEX PLUS MID CAP VP
Value at beginning of period $10.921 $9.028(5)
Value at end of period $12.540 $10.921
Number of accumulation units outstanding at end
of period 16,931 5,681
AETNA INDEX PLUS SMALL CAP VP
Value at beginning of period $8.840 $8.464(5)
Value at end of period $9.710 $8.840
Number of accumulation units outstanding at end
of period 20,739 6,564
AETNA INTERNATIONAL VP
Value at beginning of period $9.792 $9.580(5)
Value at end of period $14.693 $9.792
Number of accumulation units outstanding at end
of period 12,523 8,719
AETNA LEGACY VP
Value at beginning of period $13.136 $12.497(3)
Value at end of period $13.950 $13.136
Number of accumulation units outstanding at end
of period 83,670 61,043
</TABLE>
67
<PAGE>
Condensed Financial Information (continued)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
0.75% Total Charges 0.80% Total Charges
------------------- -------------------
1999 1998 1999 1998
---- ---- ---- ----
<S> <C> <C> <C> <C>
AETNA MONEY MARKET VP
Value at beginning of period $10.283 $10.022(1) $10.414 $10.136(2)
Value at end of period $10.725 $10.283 $10.855 $10.414
Number of accumulation units outstanding at end
of period 23,586 26,810 1,891,667 1,574,454
AETNA REAL ESTATE SECURITIES VP
Value at beginning of period $8.944 $9.792(1) $8.900 $10.041(4)
Value at end of period $8.503 $8.944 $8.457 $8.900
Number of accumulation units outstanding at end
of period 75 9 21,245 27,225
AETNA SMALL COMPANY VP
Value at beginning of period $9.159 $9.812(1) $9.764 $10.578(2)
Value at end of period $11.895 $9.159 $12.675 $9.764
Number of accumulation units outstanding at end
of period 15,498 13,043 1,290,260 1,165,745
AETNA VALUE OPPORTUNITY VP
Value at beginning of period $10.620 $9.921(1) $11.692 $10.972(2)
Value at end of period $12.604 $10.620 $13.870 $11.692
Number of accumulation units outstanding at end
of period 16,091 14,488 356,705 350,826
AIM V.I. CAPITAL APPRECIATION FUND
Value a beginning of period $9.957(6) $10.166(7)
Value at end of period $13.801 $13.796
Number of accumulation units outstanding at end
of period 49 21,991
AIM V.I. GROWTH FUND
Value a beginning of period $9.867(8) $10.306(9)
Value at end of period $12.111 $12.106
Number of accumulation units outstanding at end
of period 98 51,298
AIM V.I. GROWTH AND INCOME FUND
Value a beginning of period $9.275(7) $9.280(7)
Value at end of period $11.756 $11.752
Number of accumulation units outstanding at end
of period 2,338 81,160
AIM V.I. VALUE FUND
Value a beginning of period $9.815(6) $9.762(6)
Value at end of period $11.546 $11.542
Number of accumulation units outstanding at end
of period 1,011 166,176
CALVERT SOCIAL BALANCED PORTFOLIO
Value at beginning of period $10.694 $10.081(1) $11.254 $10.492(2)
Value at end of period $11.912 $10.694 $12.530 $11.254
Number of accumulation units outstanding at end
of period 9,602 9,543 73,943 91,333
FIDELITY VIP EQUITY-INCOME PORTFOLIO
Value at beginning of period $9.950 $9.914(1) $10.850 $10.873(2)
Value at end of period $10.501 $9.950 $11.445 $10.850
Number of accumulation units outstanding at end
of period 73,216 67,227 833,428 846,660
FIDELITY VIP GROWTH PORTFOLIO
Value at beginning of period $12.150 $9.956(1) $13.307 $10.887(2)
Value at end of period $16.574 $12.150 $18.143 $13.307
Number of accumulation units outstanding at end
of period 110,673 63,727 1,602,406 981,477
FIDELITY VIP OVERSEAS PORTFOLIO
Value at beginning of period $9.427 $9.912(1) $10.530 $11.184(2)
Value at end of period $13.346 $9.427 $14.900 $10.530
Number of accumulation units outstanding at end
of period 6,009 4,502 53,817 47,503
FIDELITY VIP II CONTRAFUND[Reg TM] PORTFOLIO
Value at beginning of period $11.454 $9.912(1) $12.589 $10.937(2)
Value at end of period $14.126 $11.454 $15.518 $12.589
Number of accumulation units outstanding at end
of period 96,687 78,075 1,895,670 2,102,805
JANUS ASPEN AGGRESSIVE GROWTH
PORTFOLIO
Value at beginning of period $12.109 $9.887(1) $13.056 $10.647(2)
Value at end of period $27.091 $12.109 $29.195 $13.056
Number of accumulation units outstanding at end
of period 181,271 117,103 2,728,718 1,605,726
JANUS ASPEN BALANCED PORTFOLIO
Value at beginning of period $11.794 $9.856(1) $12.741 $10.741(2)
Value at end of period $14.838 $11.794 $16.022 $12.741
Number of accumulation units outstanding at end
of period 69,363 26,592 815,864 425,125
<CAPTION>
0.85% Total Charges
-------------------
1999 1998
---- ----
<S> <C> <C>
AETNA MONEY MARKET VP
Value at beginning of period $11.246 $10.799(3)
Value at end of period $11.717 $11.246
Number of accumulation units outstanding at end
of period 472,335 396,669
AETNA REAL ESTATE SECURITIES VP
Value at beginning of period $8.897 $10.041(4)
Value at end of period $8.450 8.897
Number of accumulation units outstanding at end
of period 2,945 398
AETNA SMALL COMPANY VP
Value at beginning of period $13.728 $13.558(3)
Value at end of period $17.810 $13.728
Number of accumulation units outstanding at end
of period 36,864 25,298
AETNA VALUE OPPORTUNITY VP
Value at beginning of period $16.141 $13.404(3)
Value at end of period $19.138 $16.141
Number of accumulation units outstanding at end
of period 19,877 15,014
AIM V.I. CAPITAL APPRECIATION FUND
Value a beginning of period $10.489(7)
Value at end of period $13.791
Number of accumulation units outstanding at end
of period 2,863
AIM V.I. GROWTH FUND
Value a beginning of period $10.118(7)
Value at end of period $12.102
Number of accumulation units outstanding at end
of period 14,758
AIM V.I. GROWTH AND INCOME FUND
Value a beginning of period $9.575(7)
Value at end of period $11.748
Number of accumulation units outstanding at end
of period 19,774
AIM V.I. VALUE FUND
Value a beginning of period $10.458(9)
Value at end of period $11.538
Number of accumulation units outstanding at end
of period 10,688
CALVERT SOCIAL BALANCED PORTFOLIO
Value at beginning of period $15.005 $13.124(3)
Value at end of period $16.697 $15.005
Number of accumulation units outstanding at end
of period 200,068 132,605
FIDELITY VIP EQUITY-INCOME PORTFOLIO
Value at beginning of period $15.220 $13.708(3)
Value at end of period $16.047 $15.220
Number of accumulation units outstanding at end
of period 303,704 306,099
FIDELITY VIP GROWTH PORTFOLIO
Value at beginning of period $17.558 $12.857(3)
Value at end of period $23.927 $17.558
Number of accumulation units outstanding at end
of period 520,647 399,820
FIDELITY VIP OVERSEAS PORTFOLIO
Value at beginning of period $13.195 $12.182(3)
Value at end of period $18.661 $13.195
Number of accumulation units outstanding at end
of period 20,580 13,937
FIDELITY VIP II CONTRAFUND[Reg TM] PORTFOLIO
Value at beginning of period $17.847 $13.824(3)
Value at end of period $21.988 $17.847
Number of accumulation units outstanding at end
of period 303,914 217,720
JANUS ASPEN AGGRESSIVE GROWTH
PORTFOLIO
Value at beginning of period $14.152 $10.427(3)
Value at end of period $31.629 $14.152
Number of accumulation units outstanding at end
of period 608,435 320,159
JANUS ASPEN BALANCED PORTFOLIO
Value at beginning of period $17.912 $13.744(3)
Value at end of period $22.513 $17.912
Number of accumulation units outstanding at end
of period 141,750 47,668
</TABLE>
68
<PAGE>
Condensed Financial Information (continued)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
0.75% Total Charges 0.80% Total Charges
------------------- -------------------
1999 1998 1999 1998
---- ---- ---- ----
<S> <C> <C> <C> <C>
JANUS ASPEN FLEXIBLE INCOME PORTFOLIO
Value at beginning of period $10.427 $10.062(1) $10.643 $10.210(2)
Value at end of period $10.515 $10.427 $10.727 $10.643
Number of accumulation units outstanding at end
of period 6,855 6,947 300,761 367,677
JANUS ASPEN GROWTH PORTFOLIO
Value at beginning of period $11.666 $9.810(1) $12.836 $10.918(2)
Value at end of period $16.673 $11.666 $18.335 $12.836
Number of accumulation units outstanding at end
of period 73,998 41,104 1,206,255 434,913
JANUS ASPEN WORLDWIDE GROWTH
PORTFOLIO
Value at beginning of period $10.217 $9.953(1) $12.009 $11.798(2)
Value at end of period $16.676 $10.217 $19.592 $12.009
Number of accumulation units outstanding at end
of period 211,807 167,606 4,837,241 4,480,348
LEXINGTON NATURAL RESOURCES TRUST
Value at beginning of period $7.696 $9.791(1) $8.415 $10.922(2)
Value at end of period $8.715 $7.696 $9.524 $8.415
Number of accumulation units outstanding at end
of period 10,960 13,175 92,365 140,250
OPPENHEIMER GLOBAL SECURITIES
FUND/VA
Value at beginning of period $10.027 $9.713(1) $10.050 $10.001(4)
Value at end of period $15.772 $10.027 $15.800 $10.050
Number of accumulation units outstanding at end
of period 2,178 535 8,820 2,686
OPPENHEIMER STRATEGIC BOND FUND/VA
Value at beginning of period $9.935 $10.029(4) $9.926 $10.025(1)
Value at end of period $10.139 $9.935 $10.125 $9.926
Number of accumulation units outstanding at end
of period 1,052 925 4,198 18,786
PPI CAPITAL OPPORTUNITIES PORTFOLIO
Value at beginning of period $10.653 $9.963(1) $12.055 $11.274(2)
Value at end of period $15.732 $10.653 $17.793 $12.055
Number of accumulation units outstanding at end
of period 57,584 49,316 343,239 376,471
PPI MFS EMERGING EQUITIES PORTFOLIO
Value at beginning of period $10.982 $9.828(1) $11.846 $10.687(2)
Value at end of period $16.446 $10.982 $17.731 $11.846
Number of accumulation units outstanding at end
of period 161,338 139,547 2,991,235 3,491,454
PPI MFS RESEARCH GROWTH PORTFOLIO
Value at beginning of period $10.558 $9.917(1) $11.682 $11.019(2)
Value at end of period $12.998 $10.558 $14.375 $11.682
Number of accumulation units outstanding at end
of period 52,317 46,475 541,625 750,388
PPI SCUDDER INTERNATIONAL GROWTH
PORTFOLIO
Value at beginning of period $9.781 $10.009(1) $11.041 $11.338(2)
Value at end of period $15.378 $9.781 $17.351 $11.041
Number of accumulation units outstanding at end
of period 37,463 34,688 721,190 850,743
PPI T. ROWE PRICE GROWTH PORTFOLIO
Value at beginning of period $11.036 $9.961(1) $12.153 $10.967(2)
Value at end of period $13.399 $11.036 $14.748 $12.153
Number of accumulation units outstanding at end
of period 52,086 42,865 869,106 1,058,534
<CAPTION>
0.85% Total Charges
-------------------
1999 1998
---- ----
<S> <C> <C>
JANUS ASPEN FLEXIBLE INCOME PORTFOLIO
Value at beginning of period $13.078 $12.306(3)
Value at end of period $13.175 $13.078
Number of accumulation units outstanding at end
of period 35,683 25,566
JANUS ASPEN GROWTH PORTFOLIO
Value at beginning of period $17.841 $13.512(3)
Value at end of period $25.471 $17.841
Number of accumulation units outstanding at end
of period 538,138 446,603
JANUS ASPEN WORLDWIDE GROWTH
PORTFOLIO
Value at beginning of period $17.615 $14.300(3)
Value at end of period $28.723 $17.615
Number of accumulation units outstanding at end
of period 864,936 710,851
LEXINGTON NATURAL RESOURCES TRUST
Value at beginning of period $9.645 $11.047(3)
Value at end of period $10.911 $9.645
Number of accumulation units outstanding at end
of period 28,939 14,190
OPPENHEIMER GLOBAL SECURITIES
FUND/VA
Value at beginning of period $10.046 $9.275(5)
Value at end of period $15.787 $10.046
Number of accumulation units outstanding at end
of period 10,762 7,592
OPPENHEIMER STRATEGIC BOND FUND/VA
Value at beginning of period $9.922 $9.935(5)
Value at end of period $10.116 $9.922
Number of accumulation units outstanding at end
of period 5,761 2,776
PPI CAPITAL OPPORTUNITIES PORTFOLIO
Value at beginning of period $15.706 $12.661(3)
Value at end of period $23.171 $15.706
Number of accumulation units outstanding at end
of period 399,213 382,755
PPI MFS EMERGING EQUITIES PORTFOLIO
Value at beginning of period $12.800 $10.399(3)
Value at end of period $19.150 $12.800
Number of accumulation units outstanding at end
of period 822,854 706,142
PPI MFS RESEARCH GROWTH PORTFOLIO
Value at beginning of period $10.661 $8.861(3)
Value at end of period $13.112 $10.661
Number of accumulation units outstanding at end
of period 681,109 616,205
PPI SCUDDER INTERNATIONAL GROWTH
PORTFOLIO
Value at beginning of period $13.628 $11.868(3)
Value at end of period $21.405 $13.628
Number of accumulation units outstanding at end
of period 471,226 434,054
PPI T. ROWE PRICE GROWTH PORTFOLIO
Value at beginning of period $16.895 $13.562(3)
Value at end of period $20.493 $16.895
Number of accumulation units outstanding at end
of period 195,928 129,123
</TABLE>
- -----------------
(1) Funds were first received in this option during June 1998.
(2) Funds were first received in this option during May 1998.
(3) Funds were first received in this option during January 1998.
(4) Funds were first received in this option during July 1998.
(5) Funds were first received in this option during August 1998.
(6) Funds were first received in this option during May 1999.
(7) Funds were first received in this option during June 1999.
(8) Funds were first received in this option during August 1999.
(9) Funds were first received in this option during July 1999.
69
<PAGE>
Condensed Financial Information
- --------------------------------------------------------------------------------
TABLE IV
FOR CONTRACTS ISSUED UNDER 403(b), 401(a) AND 401(k) PLANS
WITH TOTAL SEPARATE ACCOUNT CHARGES OF 0.90% AND 0.95%
(Selected data for accumulation units outstanding throughout each period)
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
The condensed financial information presented below for each of the periods
ended December 31, 1999, 1998, 1997 and 1996 (as applicable), is derived from
the financial statements of the separate account, which have been audited by
KPMG LLP, independent auditors. The financial statements and the independent
auditors' report thereon for the year ended December 31, 1999 are included in
the Statement of Additional Information.
<TABLE>
<CAPTION>
0.90% Total
Charges
-----------------------
1999 1998
---- ----
<S> <C> <C>
AETNA ASCENT VP
Value at beginning of period $9.953 $9.227(1)
Value at end of period $11.279 $9.953
Number of accumulation units
outstanding at end of period 19,046 212
AETNA BALANCED VP, INC.
Value at beginning of period $11.157 $10.451(3)
Value at end of period $12.561 $11.157
Number of accumulation units
outstanding at end of period $13,521 1,648
AETNA BOND VP
Value at beginning of period $10.654 $10.070(4)
Value at end of period $10.481 $10.654
Number of accumulation units
outstanding at end of period 2,670 383
AETNA CROSSROADS VP
Value at beginning of period $10.489(5)
Value at end of period $11.115
Number of accumulation units
outstanding at end of period 4,102
AETNA GROWTH VP
Value at beginning of period $12.681 $10.958(3)
Value at end of period $16.962 $12.681
Number of accumulation units
outstanding at end of period 4,182 628
AETNA GROWTH AND INCOME VP
Value at beginning of period $10.804 $10.562(4)
Value at end of period $12.572 $10.804
Number of accumulation units
outstanding at end of period 128,637 8,243
AETNA HIGH YIELD VP
Value at beginning of period $9.802(7)
Value at end of period $9.797
Number of accumulation units
outstanding at end of period 146
AETNA INDEX PLUS LARGE CAP VP
Value at beginning of period $12.206 $10.648(4)
Value at end of period $15.036 $12.206
Number of accumulation units
outstanding at end of period 14,614 2,384
AETNA INDEX PLUS MID CAP VP
Value at beginning of period $11.099(10)
Value at end of period $12.529
Number of accumulation units
outstanding at end of period 42
AETNA INDEX PLUS SMALL CAP VP
Value at beginning of period $8.837 $9.582(8)
Value at end of period $9.702 $8.837
Number of accumulation units
outstanding at end of period 586 62
AETNA INTERNATIONAL VP
Value at beginning of period $11.286(10)
Value at end of period $14.680
Number of accumulation units
outstanding at end of period 24
AETNA LEGACY VP
Value at beginning of period $10.351 $10.390(11)
Value at end of period $10.986 $10.351
Number of accumulation units
outstanding at end of period 549 37
<CAPTION>
0.95% Total Charges
-----------------------------------------------------
1999 1998 1997 1996
---- ---- ---- ----
<S> <C> <C> <C> <C>
AETNA ASCENT VP
Value at beginning of period $14.076 $13.624 $11.472 $10.000(2)
Value at end of period $15.944 $14.076 $13.624 $11.472
Number of accumulation units
outstanding at end of period 75,808 75,369 119,471 20,237
AETNA BALANCED VP, INC.
Value at beginning of period $15.320 $13.226 $10.902 $10.000(2)
Value at end of period $17.240 $15.320 $13.226 $10.902
Number of accumulation units
outstanding at end of period 565,751 468,468 986,711 702,222
AETNA BOND VP
Value at beginning of period $12.070 $11.268 $10.503 $10.000(2)
Value at end of period $11.867 $12.070 $11.268 $10.503
Number of accumulation units
outstanding at end of period 228,114 187,653 251,156 161,765
AETNA CROSSROADS VP
Value at beginning of period $13.618 $12.980 $11.146 $10.000(2)
Value at end of period $14.867 $13.618 $12.980 $11.146
Number of accumulation units
outstanding at end of period 75,297 105,586 117,725 7,882
AETNA GROWTH VP
Value at beginning of period $18.005 $13.202 $12.787(6)
Value at end of period $24.071 $18.005 $13.202
Number of accumulation units
outstanding at end of period 53,957 25,778 1,880
AETNA GROWTH AND INCOME VP
Value at beginning of period $16.735 $14.756 $11.469 $10.000(2)
Value at end of period $19.464 $16.736 $14.756 $11.469
Number of accumulation units
outstanding at end of period 2,450,338 2,224,467 3,760,076 2,876,728
AETNA HIGH YIELD VP
Value at beginning of period $9.231 $10.078(8)
Value at end of period $9.789 $9.231
Number of accumulation units
outstanding at end of period 14,009 799
AETNA INDEX PLUS LARGE CAP VP
Value at beginning of period $18.902 $14.500 $10.934 $10.000(9)
Value at end of period $23.273 $18.902 $14.500 $10.934
Number of accumulation units
outstanding at end of period 297,994 108,387 62,360 2,697
AETNA INDEX PLUS MID CAP VP
Value at beginning of period $10.913 $10.108(11)
Value at end of period $12.519 $10.913
Number of accumulation units
outstanding at end of period 2,500 564
AETNA INDEX PLUS SMALL CAP VP
Value at beginning of period $8.834 $9.366(12)
Value at end of period $9.694 $8.834
Number of accumulation units
outstanding at end of period 16,330 2,625
AETNA INTERNATIONAL VP
Value at beginning of period $9.785 $10.103(11)
Value at end of period $14.668 $9.785
Number of accumulation units
outstanding at end of period 4,750 1,247
AETNA LEGACY VP
Value at beginning of period $13.102 $12.369 $10.905 $10.000(2)
Value at end of period $13.899 $13.102 $12.369 $10.905
Number of accumulation units
outstanding at end of period 38,639 55,494 47,726 61
</TABLE>
70
<PAGE>
Condensed Financial Information (continued)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
0.90% Total
Charges
-----------------------------------
1999 1998
---- ----
<S> <C> <C>
AETNA MONEY MARKET VP
Value at beginning of period $10.381 $10.297(1)
Value at end of period $10.811 $10.381
Number of accumulation units
outstanding at end of period 11,232 1,235
AETNA REAL ESTATE SECURITIES VP
Value at beginning of period
Value at end of period
Number of accumulation units
outstanding at end of period
AETNA SMALL COMPANY VP
Value at beginning of period $9.513 $10.939(3)
Value at end of period $12.336 $9.513
Number of accumulation units
outstanding at end of period 6,872 2,604
AETNA VALUE OPPORTUNITY VP
Value at beginning of period $11.462 $10.515(4)
Value at end of period $13.583 $11.462
Number of accumulation units
outstanding at end of period 6,154 3,526
AIM V.I. CAPITAL APPRECIATION FUND
Value at beginning of period
Value at end of period
Number of accumulation units
outstanding at end of period
AIM V.I. GROWTH FUND
Value at beginning of period $11.422(7)
Value at end of period $12.098
Number of accumulation units
outstanding at end of period 264
AIM V.I. GROWTH AND INCOME FUND
Value at beginning of period
Value at end of period
Number of accumulation units
outstanding at end of period
AIM V.I. VALUE FUND
Value at beginning of period $10.450(16)
Value at end of period $11.534
Number of accumulation units
outstanding at end of period 617
CALVERT SOCIAL BALANCED
PORTFOLIO
Value at beginning of period $11.320(5)
Value at end of period $12.414
Number of accumulation units
outstanding at end of period 3,589
FIDELITY VIP EQUITY-INCOME
PORTFOLIO
Value at beginning of period $10.671 $9.265(17)
Value at end of period $11.245 $10.671
Number of accumulation units
outstanding at end of period 6,809 20
FIDELITY VIP GROWTH PORTFOLIO
Value at beginning of period $12.978 $10.757(3)
Value at end of period $17.677 $12.978
Number of accumulation units
outstanding at end of period 9,393 1,343
FIDELITY VIP OVERSEAS PORTFOLIO
Value at beginning of period $13.705(7)
Value at end of period $14.905
Number of accumulation units
outstanding at end of period 2,474
FIDELITY VIP II CONTRAFUND[Reg TM]
PORTFOLIO
Value at beginning of period $12.293 $10.737(4)
Value at end of period $15.138 $12.293
Number of accumulation units
outstanding at end of period 25,519 1,038
JANUS ASPEN AGGRESSIVE GROWTH
PORTFOLIO
Value at beginning of period $12.830 $10.787(3)
Value at end of period $28.662 $12.830
Number of accumulation units
outstanding at end of period 17,145 353
<CAPTION>
0.95% Total Charges
--------------------------------------------------------------------
1999 1998 1997 1996
---- ---- ---- ----
<S> <C> <C> <C> <C>
AETNA MONEY MARKET VP
Value at beginning of period $11.217 $10.738 $10.277 $10.000(2)
Value at end of period $11.675 $11.217 $10.738 $10.277
Number of accumulation units
outstanding at end of period 392,226 127,186 147,123 39,811
AETNA REAL ESTATE SECURITIES VP
Value at beginning of period $8.891 $10.053(11)
Value at end of period $8.436 $8.891
Number of accumulation units
outstanding at end of period 17,118 15,245
AETNA SMALL COMPANY VP
Value at beginning of period $13.704 $13.684 $13.119(13)
Value at end of period $17.762 $13.704 $13.684
Number of accumulation units
outstanding at end of period 54,303 44,944 2,124
AETNA VALUE OPPORTUNITY VP
Value at beginning of period $16.113 $13.290 $12.912(13)
Value at end of period $19.085 $16.113 $13.290
Number of accumulation units
outstanding at end of period 42,540 29,112 587
AIM V.I. CAPITAL APPRECIATION FUND
Value at beginning of period $10.487(14)
Value at end of period $13.781
Number of accumulation units
outstanding at end of period 613
AIM V.I. GROWTH FUND
Value at beginning of period $9.465(15)
Value at end of period $12.094
Number of accumulation units
outstanding at end of period 6,722
AIM V.I. GROWTH AND INCOME FUND
Value at beginning of period $10.261(16)
Value at end of period $11.740
Number of accumulation units
outstanding at end of period 10,352
AIM V.I. VALUE FUND
Value at beginning of period $9.827(14)
Value at end of period $11.530
Number of accumulation units
outstanding at end of period 14,638
CALVERT SOCIAL BALANCED
PORTFOLIO
Value at beginning of period $14.965 $12.994 $10.924 $10.000(2)
Value at end of period $16.636 $14.965 $12.994 $10.924
Number of accumulation units
outstanding at end of period 117,902 95,020 93,905 19,808
FIDELITY VIP EQUITY-INCOME
PORTFOLIO
Value at beginning of period $15.180 $13.729 $10.819 $10.000(2)
Value at end of period $15.989 $15.180 $13.729 $10.819
Number of accumulation units
outstanding at end of period 188,394 147,150 125,669 27,639
FIDELITY VIP GROWTH PORTFOLIO
Value at beginning of period $17.512 $12.674 $10.362 $10.000(2)
Value at end of period $23.840 $17.512 $12.674 $10.362
Number of accumulation units
outstanding at end of period 345,699 165,194 150,612 54,133
FIDELITY VIP OVERSEAS PORTFOLIO
Value at beginning of period $13.160 $11.783 $10.664 $10.000(2)
Value at end of period $18.593 $13.160 $11.783 $10.664
Number of accumulation units
outstanding at end of period 10,723 9,217 20,273 3,820
FIDELITY VIP II CONTRAFUND[Reg TM]
PORTFOLIO
Value at beginning of period $17.800 $13.825 $11.243 $10.000(2)
Value at end of period $21.908 $17.800 $13.825 $11.243
Number of accumulation units
outstanding at end of period 357,610 254,734 266,396 95,199
JANUS ASPEN AGGRESSIVE GROWTH
PORTFOLIO
Value at beginning of period $14.114 $10.613 $9.510 $10.000(2)
Value at end of period $31.514 $14.114 $10.613 $9.510
Number of accumulation units
outstanding at end of period 638,670 375,663 416,100 125,232
</TABLE>
71
<PAGE>
Condensed Financial Information (continued)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
0.90% Total
Charges 0.95% Total Charges
----------------------------- ---------------------------------------------------------------
1999 1998 1999 1998 1997 1996
---- ---- ---- ---- ---- ----
<S> <C> <C> <C> <C> <C> <C>
JANUS ASPEN BALANCED
PORTFOLIO
Value at beginning of period $12.490 $10.570(3) $17.865 $13.431 $11.105 $10.000(2)
Value at end of period $15.690 $12.490 $22.431 $17.865 $13.431 $11.105
Number of accumulation units
outstanding at end of period 5,703 479 232,279 81,983 42,699 9,188
JANUS ASPEN FLEXIBLE INCOME
PORTFOLIO
Value at beginning of period $10.638 $10.232(3) $13.043 $12.069 $10.902 $10.000(9)
Value at end of period $10.712 $10.638 $13.127 $13.043 $12.069 $10.902
Number of accumulation units
outstanding at end of period 5,764 393 69,212 36,740 29,665 1,402
JANUS ASPEN GROWTH PORTFOLIO
Value at beginning of period $12.464 $10.569(12) $17.794 $13.242 $10.891 $10.000(2)
Value at end of period $17.786 $12.464 $25.378 $17.794 $13.242 $10.891
Number of accumulation units
outstanding at end of period 11,348 128 187,296 53,448 92,666 39,841
JANUS ASPEN WORLDWIDE
GROWTH PORTFOLIO
Value at beginning of period $11.745 $10.606(4) $17.569 $13.757 $11.370 $10.000(2)
Value at end of period $19.141 $11.745 $28.619 $17.569 $13.757 $11.370
Number of accumulation units
outstanding at end of period 26,947 5,140 643,914 427,855 555,448 151,935
LEXINGTON NATURAL RESOURCES TRUST
Value at beginning of period $9.619 $12.082 $11.383 $10.000(2)
Value at end of period $10.871 $9.619 $12.082 $11.383
Number of accumulation units
outstanding at end of period 51,656 51,077 85,577 5,295
OPPENHEIMER GLOBAL SECURITIES
FUND/VA
Value at beginning of period $10.039 $10.182(8)
Value at end of period $15.760 $10.039
Number of accumulation units
outstanding at end of period 544 144
OPPENHEIMER STRATEGIC
BOND FUND/VA
Value at beginning of period $9.915 $10.037(8)
Value at end of period $10.099 $9.915
Number of accumulation units
outstanding at end of period 1,106 614
PPI MFS CAPITAL
OPPORTUNITIES PORTFOLIO
Value at beginning of period $11.654 $11.183(3) $15.664 $12.478 $12.296(18)
Value at end of period $17.184 $11.654 $23.087 $15.664 $12.478
Number of accumulation units
outstanding at end of period 11,687 957 121,012 103,317 96,338
PPI MFS EMERGING EQUITIES
PORTFOLIO
Value at beginning of period $11.462 $10.233(12) $12.767 $9.940 $10.062(18)
Value at end of period $17.139 $11.462 $19.080 $12.767 $9.940
Number of accumulation units
outstanding at end of period 20,776 236 684,437 626,638 795,375
PPI MFS RESEARCH GROWTH
PORTFOLIO
Value at beginning of period $11.375 $10.954(3) $10.633 $8.727 $8.897(18)
Value at end of period $13.982 $11.375 $13.064 $10.633 $8.727
Number of accumulation units
outstanding at end of period 8,901 828 259,783 237,867 484,407
PPI SCUDDER INTERNATIONAL
GROWTH PORTFOLIO
Value at beginning of period $11.029 $10.020(1) $13.592 $11.522 $11.376(18)
Value at end of period $17.314 $11.029 $21.327 $13.592 $11.522
Number of accumulation units
outstanding at end of period 15,231 10 248,204 234,075 351,150
PPI T. ROWE PRICE
GROWTH EQUITY PORTFOLIO
Value at beginning of period $11.792 $10.840(3) $16.851 $13.332 $13.062(18)
Value at end of period $14.296 $11.792 $20.418 $16.851 $13.332
Number of accumulation units
outstanding at end of period 6,405 169 257,759 197,938 238,562
</TABLE>
- -----------------
(1) Funds were first received in this option during October 1998.
(2) The initial accumulation unit value was established during May 1996 when
the fund became available under the contract, when funds were first
received in this option or when the applicable daily asset charge was
first utilized.
(3) Funds were first received in this option during April 1998.
72
<PAGE>
Condensed Financial Information (continued)
- --------------------------------------------------------------------------------
(4) Funds were first received in this option during March 1998.
(5) Funds were first received in this option during August 1999.
(6) Funds were first received in this option during August 1997.
(7) Funds were first received in this option during December 1999.
(8) Funds were first received in this option during July 1998.
(9) The initial accumulation unit value was established during August 1996
when the fund became available under the contract, when funds were first
received in this option or when the applicable daily asset charge was
first utilized.
(10) Funds were first received in this option during September 1999.
(11) Funds were first received in this option during May 1998.
(12) Funds were first received in this option during June 1998.
(13) Funds were first received in this option during December 1997.
(14) Funds were first received in this option during June 1999.
(15) Funds were first received in this option during May 1999.
(16) Funds were first received in this option during July 1999.
(17) Funds were first received in this option during September 1998.
(18) Funds were first received in this option during November 1997.
73
<PAGE>
Condensed Financial Information
- --------------------------------------------------------------------------------
TABLE V
FOR CONTRACTS ISSUED UNDER 403(b), 401(a) AND 401(k) PLANS
WITH TOTAL SEPARATE ACCOUNT CHARGES OF 1.00%
(Selected data for accumulation units outstanding throughout each period)
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
The condensed financial information presented below for each of the periods in
the four-year period ended December 31, 1999 (as applicable), is derived from
the financial statements of the separate account, which have been audited by
KPMG LLP, independent auditors. The financial statements and the independent
auditors' report thereon for the year ended December 31, 1999 are included in
the Statement of Additional Information.
<TABLE>
<CAPTION>
1999 1998 1997 1996
---- ---- ---- ----
<S> <C> <C> <C> <C>
AETNA ASCENT VP
Value at beginning of period $14.057 $13.613 $11.468 $10.000(1)
Value at end of period $15.915 $14.057 $13.613 $11.468
Number of accumulation units
outstanding at end of period 412,579 520,438 14,463 13
AETNA BALANCED VP, INC.
Value at beginning of period $15.300 $13.215 $13.054(2)
Value at end of period $17.208 $15.300 $13.215
Number of accumulation units
outstanding at end of period 2,306,988 2,019,116 57,737
AETNA BOND VP
Value at beginning of period $12.054 $11.258 $10.500 $10.000(1)
Value at end of period $11.846 $12.054 $11.258 $10.500
Number of accumulation units
outstanding at end of period 1,191,777 802,876 64,958 679
AETNA CROSSROADS VP
Value at beginning of period $13.600 $12.970 $12.945(3)
Value at end of period $14.840 $13.600 $12.970
Number of accumulation units
outstanding at end of period 122,393 168,964 2,786
AETNA GROWTH VP
Value at beginning of period $17.989 $12.674(4)
Value at end of period $24.039 $17.989
Number of accumulation units
outstanding at end of period 550,970 194,081
AETNA GROWTH AND
INCOME VP
Value at beginning of period $16.713 $14.744 $11.465 $10.000(1)
Value at end of period $19.429 $16.713 $14.744 $11.465
Number of accumulation units
outstanding at end of period 12,501,599 9,871,041 362,675 13,125
AETNA HIGH YIELD VP
Value at beginning of period $9.228 $9.149(5)
Value at end of period $9.781 $9.228
Number of accumulation units
outstanding at end of period 11,322 9,211
AETNA INDEX PLUS LARGE
CAP VP
Value at beginning of period $18.880 $14.491 $14.289(6)
Value at end of period $23.235 $18.880 $14.491
Number of accumulation units
Outstanding at end of period 1,544,113 648,540 29
AETNA INDEX PLUS MID
CAP VP
Value at beginning of period $10.909 $7.996(5)
Value at end of period $12.508 $10.909
Number of accumulation units
outstanding at end of period 62,742 24,016
AETNA INDEX PLUS SMALL
CAP VP
Value at beginning of period $8.831 $9.580(7)
Value at end of period $9.686 $8.831
Number of accumulation units
outstanding at end of period 63,842 27,047
AETNA INTERNATIONAL VP
Value at beginning of period $9.781 $10.061(8)
Value at end of period $14.656 $9.781
Number of accumulation units
outstanding at end of period 54,742 14,898
AETNA LEGACY VP
Value at beginning of period $13.084 $12.358 $12.242(9)
Value at end of period $13.874 $13.084 $12.358
Number of accumulation units
outstanding at end of period 197,881 190,406 64
</TABLE>
74
<PAGE>
Condensed Financial Information (continued)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
1999 1998 1997 1996
---- ---- ---- ----
AETNA MONEY MARKET VP
<S> <C> <C> <C> <C>
Value at beginning of period $11.202 $10.729 $10.274 $10.000(1)
Value at end of period $11.654 $11.202 $10.729 $10.274
Number of accumulation units
outstanding at end of period 2,142,834 1,039,909 65,496 1,551
AETNA REAL ESTATE
SECURITIES VP
Value at beginning of period $8.888 $9.214(5)
Value at end of period $8.429 $8.888
Number of accumulation units
outstanding at end of period 11,150 6,500
AETNA SMALL COMPANY VP
Value at beginning of period $13.692 $14.234(10)
Value at end of period $17.737 $13.692
Number of accumulation units
outstanding at end of period 405,202 404,068
AETNA VALUE OPPORTUNITY VP
Value at beginning of period $16.099 $12.765(4)
Value at end of period $19.059 $16.099
Number of accumulation units
outstanding at end of period 94,639 98,683
AIM V.I. CAPITAL
APPRECIATION FUND
Value at beginning of period $9.821(11)
Value at end of period $13.777
Number of accumulation units
outstanding at end of period 13,134
AIM V.I. GROWTH FUND
Value at beginning of period $9.382(11)
Value at end of period $12.090
Number of accumulation units
outstanding at end of period 32,099
AIM V.I. GROWTH AND
INCOME FUND
Value at beginning of period $9.939(11)
Value at end of period $11.736
Number of accumulation units
outstanding at end of period 160,745
AIM V.I. VALUE FUND
Value at beginning of period $9.747(11)
Value at end of period $11.526
Number of accumulation units
outstanding at end of period 43,172
CALVERT SOCIAL BALANCED
PORTFOLIO
Value at beginning of period $14.945 $12.983 $12.982(12)
Value at end of period $16.606 $14.945 $12.983
Number of accumulation units
outstanding at end of period 178,990 108,344 25,620
FIDELITY VIP EQUITY-INCOME
PORTFOLIO
Value at beginning of period $15.160 $13.718 $13.438(12)
Value at end of period $15.960 $15.160 $13.718
Number of accumulation units
outstanding at end of period 363,066 409,327 29,808
FIDELITY VIP GROWTH
PORTFOLIO
Value at beginning of period $17.489 $12.663 $10.358 $10.000(1)
Value at end of period $23.797 $17.489 $12.663 $10.358
Number of accumulation units
outstanding at end of period 1,055,742 581,798 61,043 21
FIDELITY VIP OVERSEAS
PORTFOLIO
Value at beginning of period $13.143 $11.774 $11.818(6)
Value at end of period $18.559 $13.143 $11.774
Number of accumulation units
outstanding at end of period 53,000 44,183 1,294
FIDELITY VIP II CONTRAFUND[Reg TM]
PORTFOLIO
Value at beginning of period $17.776 $13.814 $11.239 $10.000(1)
Value at end of period $21.868 $17.776 $13.814 $11.239
Number of accumulation units
outstanding at end of period 1,508,807 1,138,180 139,417 20,020
</TABLE>
75
<PAGE>
Condensed Financial Information (continued)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
1999 1998 1997 1996
---- ---- ---- ----
<S> <C> <C> <C> <C>
JANUS ASPEN AGGRESSIVE
GROWTH PORTFOLIO
Value at beginning of period $14.096 $10.604 $9.507 $10.000(1)
Value at end of period $31.457 $14.096 $10.604 $9.507
Number of accumulation units
outstanding at end of period 1,788,826 997,760 106,350 17,055
JANUS ASPEN BALANCED
PORTFOLIO
Value at beginning of period $17.841 $13.420 $13.490(12)
Value at end of period $22.390 $17.841 $13.420
Number of accumulation units
outstanding at end of period 695,263 184,550 5,846
JANUS ASPEN FLEXIBLE
INCOME PORTFOLIO
Value at beginning of period $13.026 $12.059 $10.857(13)
Value at end of period $13.104 $13.026 $12.059
Number of accumulation units
outstanding at end of period 460,612 414,151 12,527
JANUS ASPEN GROWTH
PORTFOLIO
Value at beginning of period $17.770 $13.231 $10.929(13)
Value at end of period $25.332 $17.770 $13.231
Number of accumulation units
outstanding at end of period 535,269 220,151 17,098
JANUS ASPEN WORLDWIDE
GROWTH PORTFOLIO
Value at beginning of period $17.545 $13.746 $11.366 $10.000(1)
Value at end of period $28.567 $17.545 $13.746 $11.366
Number of accumulation units
outstanding at end of period 2,675,141 2,151,202 207,630 36,305
LEXINGTON NATURAL
RESOURCES TRUST
Value at beginning of period $9.606 $12.072 $13.838(12)
Value at end of period $10.851 $9.606 $12.072
Number of accumulation units
outstanding at end of period 87,038 75,695 12,963
OPPENHEIMER GLOBAL
SECURITIES FUND/VA
Value at beginning of period $10.036 $9.484(14)
Value at end of period $15.747 $10.036
Number of accumulation units
outstanding at end of period 20,246 5,395
OPPENHEIMER STRATEGIC
BOND FUND/VA
Value at beginning of period $9.912 $9.991(8)
Value at end of period $10.091 $9.912
Number of accumulation units
outstanding at end of period 12,847 7,329
PPI MFS CAPITAL
OPPORTUNITIES PORTFOLIO
Value at beginning of period $15.644 $12.467 $12.287(6)
Value at end of period $23.045 $15.644 $12.467
Number of accumulation units
outstanding at end of period 416,660 291,492 68,968
PPI MFS EMERGING EQUITIES
PORTFOLIO
Value at beginning of period $12.750 $9.932 $10.054(6)
Value at end of period $19.045 $12.750 $9.932
Number of accumulation units
outstanding at end of period 2,526,497 2,223,125 180,890
PPI MFS RESEARCH GROWTH
PORTFOLIO
Value at beginning of period $10.619 $8.720 $8.890(6)
Value at end of period $13.040 $10.619 $8.720
Number of accumulation units
outstanding at end of period 854,700 741,693 55,616
PPI SCUDDER
INTERNATIONAL GROWTH
PORTFOLIO
Value at beginning of period $13.574 $11.512 $11.367(6)
Value at end of period $21.289 $13.574 $11.512
Number of accumulation units
outstanding at end of period 868,603 715,389 80,978
</TABLE>
76
<PAGE>
Condensed Financial Information (continued)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
1999 1998 1997 1996
---- ---- ---- ----
<S> <C> <C> <C> <C>
PPI T. ROWE PRICE GROWTH
EQUITY PORTFOLIO
Value at beginning of period $16.829 $13.321 $13.052(6)
Value at end of period $20.381 $16.829 $13.321
Number of accumulation units
outstanding at end of period 666,142 767,053 65,906
</TABLE>
- -----------------
(1) The initial accumulation unit value was established during May 1996 when
the fund became available under the contract, when funds were first
received in this option or when the applicable daily asset charge was
first utilized.
(2) Funds were first received in this option during July 1997.
(3) Funds were first received in this option during September 1997.
(4) Funds were first received in this option during January 1998.
(5) Funds were first received in this option during September 1998.
(6) Funds were first received in this option during November 1997.
(7) Funds were first received in this option during July 1998.
(8) Funds were first received in this option during May 1998.
(9) Funds were first received in this option during February 1997.
(10) Funds were first received in this option during February 1998.
(11) Funds were first received in this option during May 1999.
(12) Funds were first received in this option during October 1997.
(13) Funds were first received in this option during January 1997.
(14) Funds were first received in this option during August 1998.
77
<PAGE>
Condensed Financial Information
- --------------------------------------------------------------------------------
TABLE VI
FOR CONTRACTS ISSUED UNDER 403(b), 401(a) AND 401(k) PLANS
WITH TOTAL SEPARATE ACCOUNT CHARGES OF 1.05% and 1.10%
(Selected data for accumulation units outstanding throughout each period)
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
The condensed financial information presented below for each of the periods in
the three-year period ended December 31, 1999 (as applicable), is derived from
the financial statements of the separate account, which have been audited by
KPMG LLP, independent auditors. The financial statements and the independent
auditors' report thereon for the year ended December 31, 1999 are included in
the Statement of Additional Information.
<TABLE>
<CAPTION>
1.05% Total Charges 1.10% Total Charges
--------------------------------------------- --------------------------------------------------
1999 1998 1997 1999 1998 1997
---- ---- ---- ---- ---- ----
<S> <C> <C> <C> <C> <C> <C>
AETNA ASCENT VP
Value at beginning of period $14.039 $13.602 $11.629(1) $14.020 $13.590 $13,275(2)
Value at end of period $15.886 $14.039 $13.602 $15.857 $14.020 $13.590
Number of accumulation units
outstanding at end of period 33,325 55,886 24,508 29,411 9,573 42
AETNA BALANCED VP, INC.
Value at beginning of period $15.279 $13.204 $12.677(3) $15.259 $13.194 $12.915(2)
Value at end of period $17.177 $15.279 $13.204 $17.146 $15.259 $13.194
Number of accumulation units
outstanding at end of period 103,305 61,615 4,205 79,953 10,484 294
AETNA BOND VP
Value at beginning of period $12.038 $11.249 $10.587(1) $12.022 $11.240 $11.219(4)
Value at end of period $11.824 $12.038 $11.249 $11.803 $12.022 $11.240
Number of accumulation units
outstanding at end of period 54,350 50,220 11,619 24,571 2,532 6
AETNA CROSSROADS VP
Value at beginning of period $13.582 $12.959 $11.292(1) $13.564 $12.949 $12.904(2)
Value at end of period $14.813 $13.582 $12.959 $14.786 $13.564 $12.949
Number of accumulation units
outstanding at end of period 40,690 38,257 12,847 51,462 14,611 14
AETNA GROWTH VP
Value at beginning of period $17.974 $13.192 $13.184(5) $17.958 $13.188 $13.325(2)
Value at end of period $24.006 $17.974 $13.192 $23.973 $17.958 $13.188
Number of accumulation units
outstanding at end of period 44,979 23,219 31 14,643 1,761 37
AETNA GROWTH AND
INCOME VP
Value at beginning of period $16.691 $14.732 $12.312(1) $16.669 $14.720 $14.520(2)
Value at end of period $19.393 $16.691 $14.732 $19.358 $16.669 $14.720
Number of accumulation units
outstanding at end of period 341,405 326,490 44,425 143,472 33,836 570
AETNA HIGH YIELD VP
Value at beginning of period $9.225 $9.995(6) $9.222 $9.096(7)
Value at end of period $9.772 $9.225 $9.764 $9.222
Number of accumulation units
outstanding at end of period 447 110 51 10
AETNA INDEX PLUS LARGE
CAP VP
Value at beginning of period $18.859 $14.481 $14.043(3) $18.837 $14.472 $14.078(2)
Value at end of period $23.196 $18.859 $14.481 $23.158 $18.837 $14.472
Number of accumulation units
Outstanding at end of period 61,200 51,170 1,083 65,999 10,488 215
AETNA INDEX PLUS MID
CAP VP
Value at beginning of period $10.906 $9.624(8) $10.902 $9.772(9)
Value at end of period $12.498 $10.906 $12.487 $10.902
Number of accumulation units
outstanding at end of period 460 168 1,327 3
AETNA INDEX PLUS SMALL
CAP VP
Value at beginning of period $8.827 $9.530(8) $8.476(10)
Value at end of period $9.677 $8.827 $9.669
Number of accumulation units
outstanding at end of period 1,538 330 1,596
AETNA INTERNATIONAL VP
Value at beginning of period $9.778 $8.935(11) $9.800(10)
Value at end of period $14.643 $9.778 $14.631
Number of accumulation units
outstanding at end of period 417 182 767
</TABLE>
78
<PAGE>
Condensed Financial Information (continued)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
1.05% Total Charges
--------------------------------------------------
1999 1998 1997
---- ---- ----
<S> <C> <C> <C>
AETNA LEGACY VP
Value at beginning of period $13.067 $12.348 $11.009(1)
Value at end of period $13.848 $13.067 $12.348
Number of accumulation units
outstanding at end of period 38,755 62,453 6,221
AETNA MONEY MARKET VP
Value at beginning of period $11.187 $10.720 $10.322(1)
Value at end of period $11.632 $11.187 $10.720
Number of accumulation units
outstanding at end of period 47,453 43,461 1,863
AETNA REAL ESTATE
SECURITIES VP
Value at beginning of period $8.885 $9.899(6)
Value at end of period $8.421 $8.885
Number of accumulation units
outstanding at end of period 171 131
AETNA SMALL COMPANY VP
Value at beginning of period $13.680 $13.674 $12.485(3)
Value at end of period $17.713 $13.680 $13.674
Number of accumulation units
outstanding at end of period 6,350 5,235 125
AETNA VALUE OPPORTUNITY VP
Value at beginning of period $16.085 $13.281 $12.796(5)
Value at end of period $19.033 $16.085 $13.281
Number of accumulation units
outstanding at end of period 4,556 3,648 17
AIM V.I. CAPITAL
APPRECIATION FUND
Value at beginning of period $9.877(13)
Value at end of period $13.772
Number of accumulation units
outstanding at end of period 611
AIM V.I. GROWTH FUND
Value at beginning of period $9.632(13)
Value at the of period $12.085
Number of accumulation units
outstanding at end of period 957
AIM V.I. GROWTH AND
INCOME FUND
Value at beginning of period $9.842(15)
Value at end of period $11.732
Number of accumulation units
outstanding at end of period 10,546
AIM V.I. VALUE FUND
Value at beginning of period $10.384(14)
Value at end of period $11.522
Number of accumulation units
outstanding at end of period 3,085
CALVERT SOCIAL BALANCED
PORTFOLIO
Value at beginning of period $14.926 $12.972 $12.278(3)
Value at end of period $16.576 $14.926 $12.972
Number of accumulation units
outstanding at end of period 8,581 25,822 766
FIDELITY VIP EQUITY-INCOME
PORTFOLIO
Value at beginning of period $15.140 $13.706 $11.435(1)
Value at end of period $15.931 $15.140 $13.706
Number of accumulation units
outstanding at end of period 62,832 81,062 34,010
FIDELITY VIP GROWTH
PORTFOLIO
Value at beginning of period $17.466 $12.653 $10.988(1)
Value at end of period $23.754 $17.466 $12.653
Number of accumulation units
outstanding at end of period 96,712 65,095 22,425
FIDELITY VIP OVERSEAS
PORTFOLIO
Value at beginning of period $13.126 $11.764 $10.798(1)
Value at end of period $18.525 $13.126 $11.764
Number of accumulation units
outstanding at end of period 7,698 9,113 3,858
<CAPTION>
1.10% Total Charges
--------------------------------------------------------
1999 1998 1997
---- ---- ----
<S> <C> <C> <C>
AETNA LEGACY VP
Value at beginning of period $13.050 $12.338 $12.223(12)
Value at end of period $13.823 $13.050 $12.338
Number of accumulation units
outstanding at end of period 23,031 3,369 851
AETNA MONEY MARKET VP
Value at beginning of period $11.172 $10.711 $10.663(2)
Value at end of period $11.611 $11.172 $10.711
Number of accumulation units
outstanding at end of period 25,798 6,784 145
AETNA REAL ESTATE
SECURITIES VP
Value at beginning of period $8.882 $9.159(7)
Value at end of period $8.414 $8.882
Number of accumulation units
outstanding at end of period 383 16
AETNA SMALL COMPANY VP
Value at beginning of period $13.668 $13.669 $13.331(2)
Value at end of period $17.689 $13.668 $13.669
Number of accumulation units
outstanding at end of period 7,548 6,323 650
AETNA VALUE OPPORTUNITY VP
Value at beginning of period $16.071 $13.276 $12.952(2)
Value at end of period $19.007 $16.071 $13.276
Number of accumulation units
outstanding at end of period 1,480 1,219 46
AIM V.I. CAPITAL
APPRECIATION FUND
Value at beginning of period $10.778(14)
Value at end of period $13.767
Number of accumulation units
outstanding at end of period 251
AIM V.I. GROWTH FUND
Value at beginning of period $10.484(14)
Value at the of period $12.081
Number of accumulation units
outstanding at end of period 34
AIM V.I. GROWTH AND
INCOME FUND
Value at beginning of period $10.373(14)
Value at end of period $11.728
Number of accumulation units
outstanding at end of period 281
AIM V.I. VALUE FUND
Value at beginning of period $10.159(14)
Value at end of period $11.518
Number of accumulation units
outstanding at end of period 500
CALVERT SOCIAL BALANCED
PORTFOLIO
Value at beginning of period $14.906 $13.068(16)
Value at end of period $16.546 $14.906
Number of accumulation units
outstanding at end of period 10,085 1,048
FIDELITY VIP EQUITY-INCOME
PORTFOLIO
Value at beginning of period $15.120 $13.695 $13.343(2)
Value at end of period $15.902 $15.120 $13.695
Number of accumulation units
outstanding at end of period 39,294 4,490 589
FIDELITY VIP GROWTH
PORTFOLIO
Value at beginning of period $17.443 $12.643 $12.740(2)
Value at end of period $23.710 $17.443 $12.643
Number of accumulation units
outstanding at end of period 59,684 13,478 416
FIDELITY VIP OVERSEAS
PORTFOLIO
Value at beginning of period $13.108 $11.754 $11.651(4)
Value at end of period $18.492 $13.108 $11.754
Number of accumulation units
outstanding at end of period 9,933 1,860 5
</TABLE>
79
<PAGE>
Condensed Financial Information (continued)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
1.05% Total Charges 1.10% Total Charges
-------------------------------------------------- --------------------------------------
1999 1998 1997 1999 1998 1997
---- ---- ---- ---- ---- ----
<S> <C> <C> <C> <C> <C> <C>
FIDELITY VIP II
CONTRAFUND[Reg TM] PORTFOLIO
Value at beginning of period $17.753 $13.802 $12.865(3) $17.729 $13.791 $13.502(2)
Value at end of period $21.828 $17.753 $13.802 $21.789 $17.729 $13.791
Number of accumulation units
outstanding at end of period 82,955 90,950 9,650 45,203 5,768 110
JANUS ASPEN AGGRESSIVE
GROWTH PORTFOLIO
Value at beginning of period $14.077 $10.596 $8.894(1) $14.059 $10.587 $10.337(2)
Value at end of period $31.400 $14.077 $10.596 $31.343 $14.059 $10.587
Number of accumulation units
outstanding at end of period 157,088 114,249 38,785 64,071 3,032 269
JANUS ASPEN BALANCED
PORTFOLIO
Value at beginning of period $17.818 $13.409 $11.587(1) $17.794 $13.398 $13.138(2)
Value at end of period $22.350 $17.818 $13.409 $22.309 $17.794 $13.398
Number of accumulation units
outstanding at end of period 78,372 37,434 14,527 28,646 4,709 256
JANUS ASPEN FLEXIBLE
INCOME PORTFOLIO
Value at beginning of period $13.009 $12.049 $11.571(3) $12.992 $12.039 $11.872(2)
Value at end of period $13.080 $13.009 $12.049 $13.056 $12.992 $12.039
Number of accumulation units
outstanding at end of period 25,083 13,507 700 7,040 2,780 12
JANUS ASPEN GROWTH
PORTFOLIO
Value at beginning of period $17.747 $13.220 $13.078(3) $17.723 $13.209 $12.995(2)
Value at end of period $25.286 $17.747 $13.220 $25.240 $17.723 $13.209
Number of accumulation units
outstanding at end of period 49,883 45,804 7,726 25,768 2,555 498
JANUS ASPEN WORLDWIDE
GROWTH PORTFOLIO
Value at beginning of period $17.522 $13.735 $12.089(1) $17.499 $13.724 $13.565(2)
Value at end of period $28.515 $17.522 $13.735 $28.463 $17.499 $13.724
Number of accumulation units
outstanding at end of period 199,510 202,768 59,673 65,151 14,918 971
LEXINGTON NATURAL
RESOURCES TRUST
Value at beginning of period $9.594 $12.062 $12.407(3) $9.581 $8.980(11)
Value at end of period $10.831 $9.594 $12.062 $10.812 $9.581
Number of accumulation units
outstanding at end of period 3,378 2,961 791 1,354 31
OPPENHEIMER GLOBAL
SECURITIES FUND/VA
Value at beginning of period $10.032 $9.801(6) $10.029 $10.160(8)
Value at end of period $15.734 $10.032 $15.721 $10.029
Number of accumulation units
outstanding at end of period 494 180 966 27
OPPENHEIMER STRATEGIC
BOND FUND/VA
Value at beginning of period $9.908 $9.582(17) $9.905 $9.720(7)
Value at end of period $10.082 $9.908 $10.074 $9.905
Number of accumulation units
outstanding at end of period 243 5 783 22
PPI MFS CAPITAL
OPPORTUNITIES PORTFOLIO
Value at beginning of period $15.623 $12.457 $12.277(2) $15.602 $14.846(18)
Value at end of period $23.003 $15.623 $12.457 $22.961 $15.602
Number of accumulation units
outstanding at end of period 10,435 25,784 1,514 3,853 1,488
PPI MFS EMERGING EQUITIES
PORTFOLIO
Value at beginning of period $12.733 $9.923 $10.046(2) $12.716 $9.915 $10.039(2)
Value at end of period $19.011 $12.733 $9.923 $18.976 $12.716 $9.915
Number of accumulation units
outstanding at end of period 110,360 102,952 26,577 34,563 6,017 16
PPI MFS RESEARCH GROWTH
PORTFOLIO
Value at beginning of period $10.605 $8.713 $8.883(2) $10.591 $10.008(19)
Value at end of period $13.016 $10.605 $8.713 $12.993 $10.591
Number of accumulation units
outstanding at end of period 22,552 40,974 1,465 20,445 121
</TABLE>
80
<PAGE>
<TABLE>
<CAPTION>
1.05% Total Charges 1.10% Total Charges
--------------------------------------- -----------------------------------------
1999 1998 1997 1999 1998 1997
---- ---- ---- ---- ---- ----
<S> <C> <C> <C> <C> <C> <C>
PPI SCUDDER
INTERNATIONAL GROWTH
PORTFOLIO
Value at beginning of period $13.556 $11.503 $11.358(2) $13.538 $11.633(16)
Value at end of period $21.250 $13.556 $11.503 $21.211 $13.538
Number of accumulation units
outstanding at end of period 21,942 29,581 8,780 7,463 3,300
PPI T. ROWE PRICE GROWTH
EQUITY PORTFOLIO
Value at beginning of period $16.806 $13.310 $13.042(2) $16.784 $14.258(20)
Value at end of period $20.344 $16.806 $13.310 $20.307 $16.784
Number of accumulation units
outstanding at end of period 61,161 51,412 18,429 23,320 2,769
</TABLE>
- -----------------
(1) Funds were first received in this option during February 1997.
(2) Funds were first received in this option during November 1997.
(3) Funds were first received in this option during July 1997.
(4) Funds were first received in this option during December 1997.
(5) Funds were first received in this option during August 1997.
(6) Funds were first received in this option during June 1998.
(7) Funds were first received in this option during September 1998.
(8) Funds were first received in this option during July 1998.
(9) Funds were first received in this option during December 1998.
(10) Funds were first received in this option during February 1999.
(11) Funds were first received in this option during August 1998.
(12) Funds were first received in this option during January 1997.
(13) Funds were first received in this option during May 1999.
(14) Funds were first received in this option during July 1999.
(15) Funds were first received in this option during June 1999.
(16) Funds were first received in this option during January 1998.
(17) Funds were first received in this option during October 1998.
(18) Funds were first received in this option during April 1998.
(19) Funds were first received in this option during May 1998.
(20) Funds were first received in this option during February 1998.
81
<PAGE>
Condensed Financial Information
- --------------------------------------------------------------------------------
TABLE VII
FOR CONTRACTS ISSUED UNDER 403(b), 401(a) AND 401(k) PLANS
WITH TOTAL SEPARATE ACCOUNT CHARGES OF 1.15%
(Selected data for accumulation units outstanding throughout each period)
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
The condensed financial information presented below for each of the periods in
the four-year period ended December 31, 1999 (as applicable), is derived from
the financial statements of the separate account, which have been audited by
KPMG LLP, independent auditors. The financial statements and the independent
auditors' report thereon for the year ended December 31, 1999 are included in
the Statement of Additional Information.
<TABLE>
<CAPTION>
1.15% Total Charges
-------------------------------------------------------
1999 1998 1997 1996
---- ---- ---- ----
<S> <C> <C> <C> <C>
AETNA ASCENT VP
Value at beginning of period $14.002 $13.579 $11.525(1)
Value at end of period $15.828 $14.002 $13.579
Number of accumulation units outstanding at end
of period 43,436 26,911 6,392
AETNA BALANCED VP, INC.
Value at beginning of period $15.239 $13.183 $11.130(1)
Value at end of period $17.115 $15.239 $13.183
Number of accumulation units outstanding at end
of period 224,431 275,681 250,060
AETNA BOND VP
Value at beginning of period $12.006 $11.231 $10.476(1)
Value at end of period $11.781 $12.006 $11.231
Number of accumulation units outstanding at end
of period 88,391 106,179 89,517
AETNA CROSSROADS VP
Value at beginning of period $13.546 $12.938 $11.182(1)
Value at end of period $14.759 $13.546 $12.938
Number of accumulation units outstanding at end
of period 34,308 24,882 7,129
AETNA GROWTH VP
Value at beginning of period $17.943 $13.183 $13.348(2)
Value at end of period $23.940 $17.943 $13.183
Number of accumulation units outstanding at end
of period 25,113 14,989 118
AETNA GROWTH AND INCOME VP
Value at beginning of period $16.467 $14.708 $11.805(1)
Value at end of period $19.323 $16.647 $14.708
Number of accumulation units outstanding at end
of period 514,328 581,226 508,938
AETNA HIGH YIELD VP
Value at beginning of period $9.218 $9.959(3)
Value at end of period $9.756 $9.218
Number of accumulation units outstanding at end
of period 363 1,725
AETNA INDEX PLUS LARGE CAP VP
Value at beginning of period $18.815 $14.463 $11.663(1)
Value at end of period $23.120 $18.815 $14.463
Number of accumulation units outstanding at end
of period 49,777 26,210 5,517
AETNA INDEX PLUS MID CAP VP
Value at beginning of period $10.898 $9.105(4)
Value at end of period $12.477 $10.898
Number of accumulation units outstanding at end
of period 933 96
AETNA INDEX PLUS SMALL CAP VP
Value at beginning of period $8.821 $9.569(5)
Value at end of period $9.661 $8.821
Number of accumulation units outstanding at end
of period 3,035 1,234
AETNA INTERNATIONAL VP
Value at beginning of period $9.771 $9.763(4)
Value at end of period $14.618 $9.771
Number of accumulation units outstanding at end
of period 726 167
AETNA LEGACY VP
Value at beginning of period $13.033 $12.328 $10.927(1)
Value at end of period $13.798 $13.033 $12.328
Number of accumulation units outstanding at end
of period 19,762 23,052 21,027
</TABLE>
82
<PAGE>
Condensed Financial Information (continued)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
1.15% Total Charges
------------------------------------------------------------------------
1999 1998 1997 1996
---- ---- ---- ----
<S> <C> <C> <C> <C>
AETNA MONEY MARKET VP
Value at beginning of period $11.158 $10.702 $10.264 $10.000(6)
Value at end of period $11.590 $11.158 $10.702 $10.264
Number of accumulation units outstanding at end
of period 87,883 76,594 44,265 9,856
AETNA REAL ESTATE SECURITIES VP
Value at beginning of period $8.879 $10.034(5)
Value at end of period $8.407 $8.879
Number of accumulation units outstanding at end
of period 3,933 2,845
AETNA SMALL COMPANY VP
Value at beginning of period $13.657 $13.664 $13.709(2)
Value at end of period $17.665 $13.657 $13.664
Number of accumulation units outstanding at end
of period 12,873 9,141 119
AETNA VALUE OPPORTUNITY VP
Value at beginning of period $16.057 $13.271 $13.244(2)
Value at end of period $18.982 $16.057 $13.271
Number of accumulation units outstanding at end
of period 5,973 4,025 47
AIM V.I. CAPITAL APPRECIATION FUND
Value at beginning of period $9.693(7)
Value at end of period $13.762
Number of accumulation units outstanding at end
of period 518
AIM V.I. GROWTH FUND
Value at beginning of period $9.380(7)
Value at end of period $12.077
Number of accumulation units outstanding at end
of period 1,062
AIM V.I. GROWTH AND INCOME FUND
Value at beginning of period $9.204(8)
Value at end of period $11.724
Number of accumulation units outstanding at end
of period 464
AIM V.I. VALUE FUND
Value at beginning of period $9.747(7)
Value at end of period $11.514
Number of accumulation units outstanding at end
of period 115
CALVERT SOCIAL BALANCED PORTFOLIO
Value at beginning of period $14.886 $12.951 $11.071(1)
Value at end of period $16.515 $14.886 $12.951
Number of accumulation units outstanding at end
of period 53,770 48,553 37,416
FIDELITY VIP EQUITY-INCOME PORTFOLIO
Value at beginning of period $15.100 $13.684 $10.805 $10.000(6)
Value at end of period $15.873 $15.100 $13.684 $10.805
Number of accumulation units outstanding at end
of period 77,294 62,313 40,977 4,215
FIDELITY VIP GROWTH PORTFOLIO
Value at beginning of period $17.420 $12.632 $10.348 $10.000(6)
Value at end of period $23.667 $17.420 $12.632 $10.348
Number of accumulation units outstanding at end
of period 107,839 70,232 43,953 4,472
FIDELITY VIP OVERSEAS PORTFOLIO
Value at beginning of period $13.091 $11.745 $10.662(9)
Value at end of period $18.458 $13.091 $11.745
Number of accumulation units outstanding at end
of period 10,801 9,778 6,203
FIDELITY VIP II CONTRAFUND[Reg TM] PORTFOLIO
Value at beginning of period $17.706 $13.780 $11.228 $10.000(6)
Value at end of period $21.749 $17.706 $13.780 $11.228
Number of accumulation units outstanding at end
of period 112,281 85,591 56,042 4,169
JANUS ASPEN AGGRESSIVE GROWTH
PORTFOLIO
Value at beginning of period $14.040 $10.578 $9.498 $10.000(6)
Value at end of period $31.286 $14.040 $10.578 $9.498
Number of accumulation units outstanding at end
of period 150,087 103,123 77,340 4,932
JANUS ASPEN BALANCED PORTFOLIO
Value at beginning of period $17.771 $13.387 $11.090 $10.000(6)
Value at end of period $22.269 $17.771 $13.387 $11.090
Number of accumulation units outstanding at end
of period 71,007 36,442 15,461 13
</TABLE>
83
<PAGE>
Condensed Financial Information (continued)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
1.15% Total Charges
------------------------------------------------------------------
1999 1998 1997 1996
---- ---- ---- ----
<S> <C> <C> <C> <C>
JANUS ASPEN FLEXIBLE INCOME PORTFOLIO
Value at beginning of period $12.975 $12.029 $10.882(1)
Value at end of period $13.032 $12.975 $12.029
Number of accumulation units outstanding at end
of period 15,890 8,869 4,140
JANUS ASPEN GROWTH PORTFOLIO
Value at beginning of period $17.700 $13.198 $11.138(1)
Value at end of period $25.194 $17.700 $13.198
Number of accumulation units outstanding at end
of period 56,211 39,188 22,179
JANUS ASPEN WORLDWIDE GROWTH
PORTFOLIO
Value at beginning of period $17.476 $13.712 $11.355 $10.000(6)
Value at end of period $28.411 $17.476 $13.712 $11.355
Number of accumulation units outstanding at end
of period 163,390 130,326 77,286 9
LEXINGTON NATURAL RESOURCES TRUST
Value at beginning of period $9.568 $12.042 $11.865(1)
Value at end of period $10.792 $9.568 $12.042
Number of accumulation units outstanding at end
of period 8,711 12,059 12,454
OPPENHEIMER GLOBAL SECURITIES FUND/VA
Value at beginning of period $10.025 $9.974(5)
Value at end of period $15.707 $10.025
Number of accumulation units outstanding at end
of period 775 295
OPPENHEIMER STRATEGIC BOND FUND/VA
Value at beginning of period $9.902 $10.052(5)
Value at end of period $10.065 $9.902
Number of accumulation units outstanding at end
of period 1,186 689
PPI MFS CAPITAL OPPORTUNITIES
PORTFOLIO
Value at beginning of period $15.582 $12.437 $12.258(9)
Value at end of period $22.919 $15.582 $12.437
Number of accumulation units outstanding at end
of period 77,458 75,920 79,382
PPI MFS EMERGING EQUITIES PORTFOLIO
Value at beginning of period $12.699 $9.907 $10.031(9)
Value at end of period $18.942 $12.699 $9.907
Number of accumulation units outstanding at end
of period 200,163 196,772 165,668
PPI MFS RESEARCH GROWTH PORTFOLIO
Value at beginning of period $10.577 $8.698 $8.869(9)
Value at end of period $12.969 $10.577 $8.698
Number of accumulation units outstanding at end
of period 129,349 135,559 122,863
PPI SCUDDER INTERNATIONAL GROWTH
PORTFOLIO
Value at beginning of period $13.520 $11.484 $11.341(9)
Value at end of period $21.173 $13.520 $11.484
Number of accumulation units outstanding at end
of period 80,398 88,163 77,528
PPI T. ROWE PRICE GROWTH EQUITY
PORTFOLIO
Value at beginning of period $16.762 $13.288 $13.021(9)
Value at end of period $20.270 $16.762 $13.288
Number of accumulation units outstanding at end
of period 62,597 60,127 42,110
</TABLE>
- -----------------
(1) Funds were first received in this option during January 1997.
(2) Funds were first received in this option during September 1997.
(3) Funds were first received in this option during June 1998.
(4) Funds were first received in this option during August 1998.
(5) Funds were first received in this option during July 1998.
(6) The initial accumulation unit value was established during May 1996 when
the fund became available under the contract, when funds were first received
in this option or when the applicable daily asset charge was first utilized.
(7) Funds were first received in this option during May 1999.
(8) Funds were first received in this option during August 1999.
(9) Funds were first received in this option during November 1997.
84
<PAGE>
Condensed Financial Information
- --------------------------------------------------------------------------------
TABLE VIII
FOR CONTRACTS ISSUED UNDER 403(b), 401(a) AND 401(k) PLANS
WITH TOTAL SEPARATE ACCOUNT CHARGES OF 1.20%
AND THOSE ISSUED SINCE 1996 WITH TOTAL SEPARATE ACCOUNT CHARGES OF 1.25%
(Selected data for accumulation units outstanding throughout each period)
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
The condensed financial information presented below for each of the periods in
the three-year period ended December 31, 1999 (as applicable), is derived from
the financial statements of the separate account, which have been audited by
KPMG LLP, independent auditors. The financial statements and the independent
auditors' report thereon for the year ended December 31, 1999 are included in
the Statement of Additional Information.
<TABLE>
<CAPTION>
1.20% Total Charges Issued Since 1996 with 1.25% Total Charges
------------------------------------ -----------------------------------------------
1999 1998 1997 1999 1998 1997
---- ---- ---- ---- ---- ----
<S> <C> <C> <C> <C> <C> <C>
AETNA ASCENT VP
Value at beginning of period $13.983 $13.587(1) $13.965 $13.557 $12.564(2)
Value at end of period $15.799 $13.983 $15.770 $13.965 $13.557
Number of accumulation units
outstanding at end of period 47,132 90,247 1,617 1,249 253
AETNA BALANCED VP, INC.
Value at beginning of period $15.219 $13.676(3) $15.199 $13.161 $11.921(2)
Value at end of period $17.083 $15.219 $17.052 $15.199 $13.161
Number of accumulation units
outstanding at end of period 33,948 33,673 2,089 1,535 133
AETNA BOND VP
Value at beginning of period $11.990 $11.283(3) $11.975 $11.217(1)
Value at end of period $11.760 $11.990 $11.738 $11.975
Number of accumulation units
outstanding at end of period 26,798 23,608 521 1,197
AETNA CROSSROADS VP
Value at beginning of period $13.528 $12.915(1) $13.510 $12.917 $12.024(2)
Value at end of period $14.732 $13.528 $14.705 $13.510 $12.917
Number of accumulation units
outstanding at end of period 436,389 499,874 9,107 8,075 93
AETNA GROWTH VP
Value at beginning of period $17.927 $14.173(3) $17.912 $12.876(1)
Value at end of period $23.908 $17.927 $23.875 $17.912
Number of accumulation units
outstanding at end of period 7,995 7,333 7,486 5,419
AETNA GROWTH AND INCOME VP
Value at beginning of period $16.625 $14.696 $13.746(4) $16.603 $14.684 $12.851(5)
Value at end of period $19.288 $16.625 $14.696 $19.253 $16.603 $14.684
Number of accumulation units
outstanding at end of period 192,381 224,761 25 35,468 35,133 1,646
AETNA HIGH YIELD VP
Value at beginning of period $9.215 $9.935(6) $9.348(7)
Value at end of period $9.748 $9.215 $9.739
Number of accumulation units
outstanding at end of period 119 132 260
AETNA INDEX PLUS LARGE CAP VP
Value at beginning of period $18.794 $14.453 $13.642(4) $18.772 $14.444 $14.070(8)
Value at end of period $23.082 $18.794 $14.453 $23.044 $18.772 $14.444
Number of accumulation units
outstanding at end of period 32,936 28,911 24 6,043 594 10
AETNA INDEX PLUS MID CAP VP
Value at beginning of period $10.894 $9.662(6) $10.154(9)
Value at end of period $12.466 $10.894 $12.455
Number of accumulation units
outstanding at end of period 1,115 452 1,234
AETNA INDEX PLUS SMALL CAP VP
Value at beginning of period $8.818 $9.244(6)
Value at end of period $9.653 $8.818
Number of accumulation units
outstanding at end of period 1,733 989
AETNA INTERNATIONAL VP
Value at beginning of period $9.768 $9.973(6) $10.086(9)
Value at end of period $14.606 $9.768 $14.594
Number of accumulation units
outstanding at end of period 354 123 126
AETNA LEGACY VP
Value at beginning of period $13.015 $12.606(3) $12.998 $12.308 $12.362(10)
Value at end of period $13.773 $13.015 $13.748 $12.998 $12.308
Number of accumulation units
outstanding at end of period 27,715 61,973 5,897 5,866 2
</TABLE>
85
<PAGE>
Condensed Financial Information (continued)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
1.20% Total Charges
----------------------------------------------------
1999 1998 1997
---- ---- ----
<S> <C> <C> <C>
AETNA MONEY MARKET VP
Value at beginning of period $11.143 $10.761(3)
Value at end of period $11.569 $11.143
Number of accumulation units
outstanding at end of period 40,450 15,147
AETNA REAL ESTATE SECURITIES VP
Value at beginning of period $8.876 $9.633(6)
Value at end of period $8.400 $8.876
Number of accumulation units
outstanding at end of period 914 372
AETNA SMALL COMPANY VP
Value at beginning of period $13.645 $14.380(3)
Value at end of period $17.641 $13.645
Number of accumulation units
outstanding at end of period 18,254 24,930
AETNA VALUE OPPORTUNITY VP
Value at beginning of period $16.044 $14.033(3)
Value at end of period $18.956 $16.044
Number of accumulation units
outstanding at end of period 12,127 12,115
AIM V.I. CAPITAL APPRECIATION
FUND
Value a beginning of period $10.195(11)
Value at end of period $13.758
Number of accumulation units
outstanding at end of period 218
AIM V.I. GROWTH FUND
Value a beginning of period $9.493(13)
Value at end of period $12.073
Number of accumulation units
outstanding at end of period 167
AIM V.I. GROWTH AND INCOME
FUND
Value a beginning of period $9.601(15)
Value at end of period $11.720
Number of accumulation units
outstanding at end of period 179
AIM V.I. VALUE FUND
Value a beginning of period $9.848(11)
Value at end of period $11.510
Number of accumulation units
outstanding at end of period 156
CALVERT SOCIAL BALANCED
PORTFOLIO
Value at beginning of period $14.867 $13.354(3)
Value at end of period $16.485 $14.867
Number of accumulation units
outstanding at end of period 6,433 2,926
FIDELITY VIP EQUITY-INCOME
PORTFOLIO
Value at beginning of period $15.080 $14.168(3)
Value at end of period $15.844 $15.080
Number of accumulation units
outstanding at end of period 21,440 13,584
FIDELITY VIP GROWTH PORTFOLIO
Value at beginning of period $17.397 $13.438(3)
Value at end of period $23.624 $17.397
Number of accumulation units
outstanding at end of period 55,527 58,305
FIDELITY VIP OVERSEAS PORTFOLIO
Value at beginning of period $13.074 $12.430(3)
Value at end of period $18.424 $13.074
Number of accumulation units
outstanding at end of period 2,471 5,797
FIDELITY VIP II CONTRAFUND[Reg TM]
PORTFOLIO
Value at beginning of period $17.683 $13.768 $12.889(2)
Value at end of period $21.710 $17.683 $13.768
Number of accumulation units
outstanding at end of period 29,986 29,528 27
JANUS ASPEN AGGRESSIVE GROWTH
PORTFOLIO
Value at beginning of period $14.022 $10.956(3)
Value at end of period $31,229 $14.022
Number of accumulation units
outstanding at end of period 67,583 43,050
<CAPTION>
Issued Since 1996 with 1.25% Total Charges
-----------------------------------------------------
1999 1998 1997
---- ---- ----
<S> <C> <C> <C>
AETNA MONEY MARKET VP
Value at beginning of period $11.128 $10.746(3)
Value at end of period $11.548 $11.128
Number of accumulation units
outstanding at end of period 11,404 6,649
AETNA REAL ESTATE SECURITIES VP
Value at beginning of period $8.830(11)
Value at end of period $8.393
Number of accumulation units
outstanding at end of period 1
AETNA SMALL COMPANY VP
Value at beginning of period $13.633 $13.203(1)
Value at end of period $17.617 $13.633
Number of accumulation units
outstanding at end of period 8,928 7,548
AETNA VALUE OPPORTUNITY VP
Value at beginning of period $16.030 $12.844(1)
Value at end of period $18.930 $16.030
Number of accumulation units
outstanding at end of period 2,022 1,234
AIM V.I. CAPITAL APPRECIATION
FUND
Value a beginning of period $12.638(12)
Value at end of period $13.753
Number of accumulation units
outstanding at end of period 17
AIM V.I. GROWTH FUND
Value a beginning of period $9.783(14)
Value at end of period $12.069
Number of accumulation units
outstanding at end of period 23
AIM V.I. GROWTH AND INCOME
FUND
Value a beginning of period $9.470(14)
Value at end of period $11.716
Number of accumulation units
outstanding at end of period 22
AIM V.I. VALUE FUND
Value a beginning of period
Value at end of period
Number of accumulation units
outstanding at end of period
CALVERT SOCIAL BALANCED
PORTFOLIO
Value at beginning of period $14.847 $12.930 $12.790(16)
Value at end of period $16.455 $14.847 $12.930
Number of accumulation units
outstanding at end of period 270 51 6
FIDELITY VIP EQUITY-INCOME
PORTFOLIO
Value at beginning of period $15.061 $13.661 $13.299(16)
Value at end of period $15.815 $15.061 $13.661
Number of accumulation units
outstanding at end of period 11,533 8,741 6
FIDELITY VIP GROWTH PORTFOLIO
Value at beginning of period $17.374 $12.612 $11.704(2)
Value at end of period $23.581 $17.374 $12.612
Number of accumulation units
outstanding at end of period 23,472 9,906 214
FIDELITY VIP OVERSEAS PORTFOLIO
Value at beginning of period $13.056 $11.726 $12.512(8)
Value at end of period $18.391 $13.056 $11.726
Number of accumulation units
outstanding at end of period 6,718 688 22
FIDELITY VIP II CONTRAFUND[Reg TM]
PORTFOLIO
Value at beginning of period $17.659 $13.757 $11.902(5)
Value at end of period $21.670 $17.659 $13.757
Number of accumulation units
outstanding at end of period 13,062 11,737 390
JANUS ASPEN AGGRESSIVE GROWTH
PORTFOLIO
Value at beginning of period $14.003 $10.561 $9.646(2)
Value at end of period $31.172 $14.003 $10.561
Number of accumulation units
outstanding at end of period 17,486 4,812 262
</TABLE>
86
<PAGE>
Condensed Financial Information (continued)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
1.20% Total Charges
---------------------------------------------------
1999 1998 1997
---- ---- ----
<S> <C> <C> <C>
JANUS ASPEN BALANCED
PORTFOLIO
Value at beginning of period $17.747 $14.246(3)
Value at end of period $22.228 $17.747
Number of accumulation units
outstanding at end of period 22,044 21,105
JANUS ASPEN FLEXIBLE INCOME
PORTFOLIO
Value at beginning of period $12.958 $12.212(3)
Value at end of period $13.008 $12.958
Number of accumulation units
outstanding at end of period 6,648 13,990
JANUS ASPEN GROWTH PORTFOLIO
Value at beginning of period $17.677 $14.218(3)
Value at end of period $25.148 $17.677
Number of accumulation units
outstanding at end of period 32,113 19,754
JANUS ASPEN WORLDWIDE GROWTH
PORTFOLIO
Value at beginning of period $17.453 $13.701 $13.856(2)
Value at end of period $28.360 $17.453 $13.701
Number of accumulation units
outstanding at end of period 50,750 46,824 27
LEXINGTON NATURAL RESOURCES
TRUST
Value at beginning of period $9.556 $11.980(6)
Value at end of period $10.772 $9.556
Number of accumulation units
outstanding at end of period 2,437 2,826
OPPENHEIMER GLOBAL SECURITIES
FUND/VA
Value at beginning of period $9.897(17)
Value at end of period $15.694
Number of accumulation units
outstanding at end of period 132
OPPENHEIMER STRATEGIC BOND
FUND/VA
Value at beginning of period $9.898 $9.905(18)
Value at end of period $10.057 $9.898
Number of accumulation units
outstanding at end of period 89 57
PPI MFS CAPITAL OPPORTUNITIES
PORTFOLIO
Value at beginning of period $15.561 $13.387(3)
Value at end of period $22.878 $15.561
Number of accumulation units
outstanding at end of period 19,495 19,782
PPI MFS EMERGING EQUITIES
PORTFOLIO
Value at beginning of period $12.683 $11.093(3)
Value at end of period $18.907 $12.683
Number of accumulation units
outstanding at end of period 69,822 88,261
PPI MFS RESEARCH GROWTH
PORTFOLIO
Value at beginning of period $10.563 $9.310(3)
Value at end of period $12.945 $10.563
Number of accumulation units
outstanding at end of period 33,672 49,879
PPI SCUDDER INTERNATIONAL
GROWTH PORTFOLIO
Value at beginning of period $13.502 $12.274(3)
Value at end of period $21.134 $13.502
Number of accumulation units
outstanding at end of period 15,623 13,604
PPI T. ROWE PRICE GROWTH
EQUITY PORTFOLIO
Value at beginning of period $16.740 $14.232(3)
Value at end of period $20.233 $16.740
Number of accumulation units
outstanding at end of period 24,522 45,971
<CAPTION>
Issued Since 1996 with 1.25% Total Charges
--------------------------------------------------------
1999 1998 1997
---- ---- ----
<S> <C> <C> <C>
JANUS ASPEN BALANCED
PORTFOLIO
Value at beginning of period $17.724 $13.370(1)
Value at end of period $22.188 $17.724
Number of accumulation units
outstanding at end of period 7,932 798
JANUS ASPEN FLEXIBLE INCOME
PORTFOLIO
Value at beginning of period $12.940 $12.112(1)
Value at end of period $12.985 $12.940
Number of accumulation units
outstanding at end of period 1,754 126
JANUS ASPEN GROWTH PORTFOLIO
Value at beginning of period $17.653 $13.177 $13.270(8)
Value at end of period $25.103 $17.653 $13.177
Number of accumulation units
outstanding at end of period 9,890 5,365 32
JANUS ASPEN WORLDWIDE GROWTH
PORTFOLIO
Value at beginning of period $17.430 $13.690 $13.125(2)
Value at end of period $28.308 $17.430 $13.690
Number of accumulation units
outstanding at end of period 19,060 10,441 273
LEXINGTON NATURAL RESOURCES
TRUST
Value at beginning of period $9.543 $12.022 $11.717(2)
Value at end of period $10.753 $9.543 $12.022
Number of accumulation units
outstanding at end of period 71 53 35
OPPENHEIMER GLOBAL SECURITIES
FUND/VA
Value at beginning of period $11.614(13)
Value at end of period $15.681
Number of accumulation units
outstanding at end of period 8
OPPENHEIMER STRATEGIC BOND
FUND/VA
Value at beginning of period $9.869(7)
Value at end of period $10.048
Number of accumulation units
outstanding at end of period 9
PPI MFS CAPITAL OPPORTUNITIES
PORTFOLIO
Value at beginning of period $15.541 $12.394(1)
Value at end of period $22.836 $15.541
Number of accumulation units
outstanding at end of period 3,709 1,060
PPI MFS EMERGING EQUITIES
PORTFOLIO
Value at beginning of period $12.666 $9.891 $10.015(16)
Value at end of period $18.873 $12.666 $9.891
Number of accumulation units
outstanding at end of period 26,072 21,617 99
PPI MFS RESEARCH GROWTH
PORTFOLIO
Value at beginning of period $10.549 $8.597(1)
Value at end of period $12.922 $10.549
Number of accumulation units
outstanding at end of period 3,583 3,244
PPI SCUDDER INTERNATIONAL
GROWTH PORTFOLIO
Value at beginning of period $13.485 $11.465 $11.323(16)
Value at end of period $21.096 $13.485 $11.465
Number of accumulation units
outstanding at end of period 3,170 2,493 189
PPI T. ROWE PRICE GROWTH
EQUITY PORTFOLIO
Value at beginning of period $16.718 $13.156((1)
Value at end of period $20.196 $16.718
Number of accumulation units
outstanding at end of period 1,434 1,239
</TABLE>
- -----------------
(1) Funds were first received in this option during January 1998.
(2) Funds were first received in this option during June 1997.
(3) Funds were first received in this option during February 1998.
87
<PAGE>
Condensed Financial Information (continued)
- --------------------------------------------------------------------------------
(4) Funds were first received in this option during July 1997.
(5) Funds were first received in this option during May 1997.
(6) Funds were first received in this option during June 1998.
(7) Funds were first received in this option during January 1999.
(8) Funds were first received in this option during September 1997.
(9) Funds were first received in this option during March 1999.
(10) Funds were first received in this option during October 1997.
(11) Funds were first received in this option during September 1999.
(12) Funds were first received in this option during December 1999.
(13) Funds were first received in this option during August 1999.
(14) Funds were first received in this option during October 1999.
(15) Funds were first received in this option during June 1999.
(16) Funds were first received in this option during November 1997.
(17) Funds were first received in this option during February 1999.
(18) Funds were first received in this option during December 1998.
88
<PAGE>
Condensed Financial Information
- --------------------------------------------------------------------------------
TABLE IX
FOR CONTRACTS ISSUED UNDER 403(b), 401(a) AND 401(k) PLANS SINCE 1996
WITH TOTAL SEPARATE ACCOUNT CHARGES OF 1.30% AND 1.40%
(Selected data for accumulation units outstanding throughout each period)
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
The condensed financial information presented below for each of the periods
ended December 31, 1999, 1998 and 1997 (as applicable), is derived from the
financial statements of the separate account, which have been audited by KPMG
LLP, independent auditors. The financial statements and the independent
auditors' report thereon for the year ended December 31, 1999 are included in
the Statement of Additional Information.
<TABLE>
<CAPTION>
1.30% Total Charges
-------------------------------------------------
1999 1998 1997
---- ---- ----
<S> <C> <C> <C>
AETNA ASCENT VP
Value at beginning of period $13.946 $13.546 $11.759(1)
Value at end of period $15.742 $13.946 $13.546
Number of accumulation units outstanding at end
of period 2,120 1,424 855
AETNA BALANCED VP, INC.
Value at beginning of period $15.179 $13.150 $11.717(3)
Value at end of period $17.021 $15.179 $13.150
Number of accumulation units outstanding at end
of period 113 8 459
AETNA BOND VP
Value at beginning of period $11.959 $11.203 $10.974(1)
Value at end of period $11.717 $11.959 $11.203
Number of accumulation units outstanding at end
of period 36,650 59,443 279
AETNA CROSSROADS VP
Value at beginning of period $13.492 $12.906 $11.380(1)
Value at end of period $14.679 $13.492 $12.906
Number of accumulation units outstanding at end
of period 870 521 641
AETNA GROWTH VP
Value at beginning of period $18.880(4)
Value at end of period $23.843
Number of accumulation units outstanding at end
of period 381
AETNA GROWTH AND INCOME VP
Value at beginning of period $16.581 $14.672 $12.519(1)
Value at end of period $19.218 $16.581 $14.672
Number of accumulation units outstanding at end
of period 4,575 2,880 3,082
AETNA HIGH YIELD VP
Value at beginning of period
Value at end of period
Number of accumulation units outstanding at end
of period
AETNA INDEX PLUS LARGE CAP VP
Value at beginning of period $18.751 $14.435 $11.470(7)
Value at end of period $23.006 $18.751 $14.435
Number of accumulation units outstanding at end
of period 14,317 12,423 8,665
AETNA INDEX PLUS MID CAP VP
Value at beginning of period $10.887 $9.805(8)
Value at end of period $12.445 $10.887
Number of accumulation units outstanding at end
of period 385 41
AETNA INDEX PLUS SMALL CAP VP
Value at beginning of period $8.812 $8.198(8)
Value at end of period $9.637 $8.812
Number of accumulation units outstanding at end
of period 468 49
AETNA INTERNATIONAL VP
Value at beginning of period $10.019(4)
Value at end of period $14.582
Number of accumulation units outstanding at end
of period 149
AETNA LEGACY VP
Value at beginning of period $12.981 $12.298 $11.401(3)
Value at end of period $13.723 $12.981 $12.298
Number of accumulation units outstanding at end
of period 1,546 30,755 74
<CAPTION>
1.40% Total Charges
-----------------------------------
1999 1998
---- ----
<S> <C> <C>
AETNA ASCENT VP
Value at beginning of period $13.910 $14.731(2)
Value at end of period $15.685 $13.910
Number of accumulation units outstanding at end
of period 457 136
AETNA BALANCED VP, INC.
Value at beginning of period $15.139 $14.278(2)
Value at end of period $16.960 $15.139
Number of accumulation units outstanding at end
of period 1,122 533
AETNA BOND VP
Value at beginning of period $11.927 $11.423(2)
Value at end of period $11.674 $11.927
Number of accumulation units outstanding at end
of period 324 189
AETNA CROSSROADS VP
Value at beginning of period $13.457 $13.846(2)
Value at end of period $14.625 $13.457
Number of accumulation units outstanding at end
of period 1,479 501
AETNA GROWTH VP
Value at beginning of period $17.865 $15.724(2)
Value at end of period $23.778 $17.865
Number of accumulation units outstanding at end
of period 746 211
AETNA GROWTH AND INCOME VP
Value at beginning of period $16.537 $16.562(5)
Value at end of period $19.148 $16.537
Number of accumulation units outstanding at end
of period 2,977 934
AETNA HIGH YIELD VP
Value at beginning of period $9.555(6)
Value at end of period $9.715
Number of accumulation units outstanding at end
of period 30
AETNA INDEX PLUS LARGE CAP VP
Value at beginning of period $18.708 $16.556(2)
Value at end of period $22.930 $18.708
Number of accumulation units outstanding at end
of period 1,399 173
AETNA INDEX PLUS MID CAP VP
Value at beginning of period
Value at end of period
Number of accumulation units outstanding at end
of period
AETNA INDEX PLUS SMALL CAP VP
Value at beginning of period
Value at end of period
Number of accumulation units outstanding at end
of period
AETNA INTERNATIONAL VP
Value at beginning of period $10.925(9)
Value at end of period $14.557
Number of accumulation units outstanding at end
of period 21
AETNA LEGACY VP
Value at beginning of period $12.666(10)
Value at end of period $13.673
Number of accumulation units outstanding at end
of period 125
</TABLE>
89
<PAGE>
Condensed Financial Information (continued)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
1.30% Total Charges
-----------------------------------------------------
1999 1998 1997
---- ---- ----
<S> <C> <C> <C>
AETNA MONEY MARKET VP
Value at beginning of period $11.114 $10.676 $10.358(7)
Value at end of period $11.527 $11.114 $10.676
Number of accumulation units outstanding at end
of period 5,569 13,000 8,302
AETNA REAL ESTATE SECURITIES VP
Value at beginning of period
Value at end of period
Number of accumulation units outstanding at end
of period
AETNA SMALL COMPANY VP
Value at beginning of period
Value at end of period
Number of accumulation units outstanding at end
of period
AETNA VALUE OPPORTUNITY VP
Value at beginning of period $16.016 $15.827(12)
Value at end of period $18.904 $16.016
Number of accumulation units outstanding at end
of period 192 88
AIM V.I. CAPITAL APPRECIATION FUND
Value at beginning of period $9.857(13)
Value at end of period $13.748
Number of accumulation units outstanding at end
of period 54
AIM V.I. GROWTH FUND
Value at beginning of period $9.916(14)
Value at end of period $12.064
Number of accumulation units outstanding at end
of period 105
AIM V.I. GROWTH AND INCOME FUND
Value at beginning of period $10.636(15)
Value at end of period $11.712
Number of accumulation units outstanding at end
of period 893
AIM V.I. VALUE FUND
Value at beginning of period $10.847(15)
Value at end of period $11.494
Number of accumulation units outstanding at end
of period 10
CALVERT SOCIAL BALANCED PORTFOLIO
Value at beginning of period $14.827 $12.919 $11.742(3)
Value at end of period $16.426 $14.827 $12.919
Number of accumulation units outstanding at end
of period 44 13 44
FIDELITY VIP EQUITY-INCOME PORTFOLIO
Value at beginning of period $15.041 $13.650 $10.942(7)
Value at end of period $15.786 $15.041 $13.650
Number of accumulation units outstanding at end
of period 4,118 3,612 7,817
FIDELITY VIP GROWTH PORTFOLIO
Value at beginning of period $17.351 $12.601 $10.724(1)
Value at end of period $23.538 $17.351 $12.601
Number of accumulation units outstanding at end
of period 7,251 2,636 2,031
FIDELITY VIP OVERSEAS PORTFOLIO
Value at beginning of period $13.039 $11.716 $11.785(1)
Value at end of period $18.357 $13.039 $11.716
Number of accumulation units outstanding at end
of period 469 408 348
FIDELITY VIP II CONTRAFUND[Reg TM] PORTFOLIO
Value at beginning of period $17.636 $13.746 $11.031(7)
Value at end of period $21.631 $17.636 $13.746
Number of accumulation units outstanding at end
of period 12,867 10,681 7,728
JANUS ASPEN AGGRESSIVE GROWTH
PORTFOLIO
Value at beginning of period $13.985 $10.552 $8.944(1)
Value at end of period $31.116 $13.985 $10.552
Number of accumulation units outstanding at end
of period 9,014 3,586 2,527
JANUS ASPEN BALANCED PORTFOLIO
Value at beginning of period $17.701 $13.354 $12.113(3)
Value at end of period $22.147 $17.701 $13.354
Number of accumulation units outstanding at end
of period 2,769 668 369
<CAPTION>
1.40% Total Charges
-------------------------------------
1999 1998
---- ----
<S> <C> <C>
AETNA MONEY MARKET VP
Value at beginning of period $11.084 $10.821(2)
Value at end of period $11.485 $11.084
Number of accumulation units outstanding at end
of period 441 161
AETNA REAL ESTATE SECURITIES VP
Value at beginning of period $9.402(6)
Value at end of period $8.372
Number of accumulation units outstanding at end
of period 33
AETNA SMALL COMPANY VP
Value at beginning of period $13.598 $11.872(11)
Value at end of period $17.545 $13.598
Number of accumulation units outstanding at end
of period 283 72
AETNA VALUE OPPORTUNITY VP
Value at beginning of period $15.988 $15.181(2)
Value at end of period $18.852 $15.988
Number of accumulation units outstanding at end
of period 136 39
AIM V.I. CAPITAL APPRECIATION FUND
Value at beginning of period
Value at end of period
Number of accumulation units outstanding at end
of period
AIM V.I. GROWTH FUND
Value at beginning of period $10.959(15)
Value at end of period $12.056
Number of accumulation units outstanding at end
of period 3
AIM V.I. GROWTH AND INCOME FUND
Value at beginning of period
Value at end of period
Number of accumulation units outstanding at end
of period
AIM V.I. VALUE FUND
Value at beginning of period $10.003(16)
Value at end of period $11.486
Number of accumulation units outstanding at end
of period 507
CALVERT SOCIAL BALANCED PORTFOLIO
Value at beginning of period $14.950(4)
Value at end of period $16.366
Number of accumulation units outstanding at end
of period 508
FIDELITY VIP EQUITY-INCOME PORTFOLIO
Value at beginning of period $15.001 $15.124(2)
Value at end of period $15.729 $15.001
Number of accumulation units outstanding at end
of period 1,189 2,077
FIDELITY VIP GROWTH PORTFOLIO
Value at beginning of period $17.305 $14.386(2)
Value at end of period $23.453 $17.305
Number of accumulation units outstanding at end
of period 6,554 4,116
FIDELITY VIP OVERSEAS PORTFOLIO
Value at beginning of period $13.005 $13.828(2)
Value at end of period $18.291 $13.005
Number of accumulation units outstanding at end
of period 156 113
FIDELITY VIP II CONTRAFUND[Reg TM] PORTFOLIO
Value at beginning of period $17.590 $15.738(5)
Value at end of period $21.552 $17.590
Number of accumulation units outstanding at end
of period 3,062 1,990
JANUS ASPEN AGGRESSIVE GROWTH
PORTFOLIO
Value at beginning of period $13.948 $11.943(5)
Value at end of period $31.003 $13.948
Number of accumulation units outstanding at end
of period 2,357 1,441
JANUS ASPEN BALANCED PORTFOLIO
Value at beginning of period $17.654 $15.102(2)
Value at end of period $22.067 $17.654
Number of accumulation units outstanding at end
of period 1,224 564
</TABLE>
90
<PAGE>
Condensed Financial Information (continued)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
1.30% Total Charges 1.40% Total Charges
------------------------------------------ ---------------------------------
1999 1998 1997 1999 1998
---- ---- ---- ---- ----
<S> <C> <C> <C> <C> <C>
JANUS ASPEN FLEXIBLE INCOME PORTFOLIO
Value at beginning of period $12.923 $12.225(17) $12.889 $12.375(2)
Value at end of period $12.961 $12.923 $12.914 $12.889
Number of accumulation units outstanding at end
of period 4,549 8,960 169 30
JANUS ASPEN GROWTH PORTFOLIO
Value at beginning of period $17.630 $13.166 $10.962(7) $17.584 $15.123(2)
Value at end of period $25.057 $17.630 $13.166 $24.966 $17.584
Number of accumulation units outstanding at end
of period 4,722 911 637 3,143 2,368
JANUS ASPEN WORLDWIDE GROWTH PORTFOLIO
Value at beginning of period $17.407 $13.679 $11.961(7) $17.361 $16.231(5)
Value at end of period $28.257 $17.407 $13.679 $28.154 $17.361
Number of accumulation units outstanding at end
of period 14,291 6,473 2,018 2,148 649
LEXINGTON NATURAL RESOURCES TRUST
Value at beginning of period $12.012 $10.678(7)
Value at end of period $9.340 $12.012
Number of accumulation units outstanding at end
of period 0 5
OPPENHEIMER GLOBAL SECURITIES FUND/VA
Value at beginning of period $10.015 $9.965(12) $10.008 $10.041(18)
Value at end of period $15.668 $10.015 $15.641 $10.008
Number of accumulation units outstanding at end
of period 31 139 31 14
PPI MFS CAPITAL OPPORTUNITIES PORTFOLIO
Value at beginning of period $15.520 $12.406 $12.230(19) $15.479 $14.631(2)
Value at end of period $22.794 $15.520 $12.406 $22.712 $15.479
Number of accumulation units outstanding at end
of period 4,032 1,074 237 95 46
PPI MFS EMERGING EQUITIES PORTFOLIO
Value at beginning of period $12.649 $9.883 $10.007(19) $12.616 $11.707(2)
Value at end of period $18.838 $12.649 $9.883 $18.770 $12.616
Number of accumulation units outstanding at end
of period 7,480 5,462 3,595 1,615 928
PPI MFS RESEARCH GROWTH PORTFOLIO
Value at beginning of period $10.535 $8.677 $8.848(19) $10.507 $9.977(2)
Value at end of period $12.898 $10.535 $8.677 $12.851 $10.507
Number of accumulation units outstanding at end
of period 6,221 5,146 1,788 406 220
PPI SCUDDER INTERNATIONAL GROWTH PORTFOLIO
Value at beginning of period $13.467 $11.456 $11.314(19) $13.431 $13.542(2)
Value at end of period $21.057 $13.467 $11.456 $20.981 $13.431
Number of accumulation units outstanding at end
of period 462 313 200 182 125
PPI T. ROWE PRICE GROWTH PORTFOLIO
Value at beginning of period $16.696 $13.256 $12.991(19) $16.652 $15.190(2)
Value at end of period $20.160 $16.696 $13.256 $20.086 $16.652
Number of accumulation units outstanding at end
of period 3,215 2,748 1,649 2,478 1,525
</TABLE>
- -----------------
(1) Funds were first received in this option during May 1997.
(2) Funds were first received in this option during May 1998.
(3) Funds were first received in this option during June 1997.
(4) Funds were first received in this option during February 1999.
(5) Funds were first received in this option during April 1998.
(6) Funds were first received in this option during May 1999.
(7) Funds were first received in this option during April 1997.
(8) Funds were first received in this option during November 1998.
(9) Funds were first received in this option during July 1999.
(10) Funds were first received in this option during March 1999.
(11) Funds were first received in this option during September 1998.
(12) Funds were first received in this option during December 1998.
(13) Funds were first received in this option during October 1999.
(14) Funds were first received in this option during September 1999.
(15) Funds were first received in this option during November 1999.
(16) Funds were first received in this option during August 1999.
(17) Funds were first received in this option during March 1998.
(18) Funds were first received in this option during July 1998.
(19) Funds were first received in this option during November 1997.
91
<PAGE>
Condensed Financial Information
- --------------------------------------------------------------------------------
TABLE X
FOR CONTRACTS ISSUED UNDER 403(b), 401(a) AND 401(k) PLANS SINCE 1996
WITH TOTAL SEPARATE ACCOUNT CHARGES OF 1.50%
(Selected data for accumulation units outstanding throughout each period)
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
The condensed financial information presented below for each of the periods in
the four-year period ended December 31, 1999 (as applicable), is derived from
the financial statements of the separate account, which have been audited by
KPMG LLP, independent auditors. The financial statements and the independent
auditors' report thereon for the year ended December 31, 1999 are included in
the Statement of Additional Information.
<TABLE>
<CAPTION>
1999 1998 1997 1996
---- ---- ---- ----
<S> <C> <C> <C> <C>
AETNA ASCENT VP
Value at beginning of period $13.873 $13.502 $11.422(1)
Value at end of period $15.628 $13.873 $13.502
Number of accumulation units outstanding at end
of period 12,770 14,280 9,985
AETNA BALANCED VP, INC
Value at beginning of period $15.099 $13.107 $11.009(1)
Value at end of period $16.898 $15.099 $13.107
Number of accumulation units outstanding at end
of period 10,946 9,091 7,997
AETNA BOND VP
Value at beginning of period $11.896 $11.166 $10.442(1)
Value at end of period $11.632 $11.896 $11.166
Number of accumulation units outstanding at end
of period 6,253 27,680 2,940
AETNA CROSSROADS VP
Value at beginning of period $13.421 $12.864 $11.093(1)
Value at end of period $14.572 $13.421 $12.864
Number of accumulation units outstanding at end
of period 15,405 22,768 30,806
AETNA GROWTH VP
Value at beginning of period $17.834 $13.027(2)
Value at end of period $23.713 $17.834
Number of accumulation units outstanding at end
of period 5,473 3,470
AETNA GROWTH AND INCOME VP
Value at beginning of period $16.493 $14.624 $11.429 $10.000(3)
Value at end of period $19.078 $16.493 $14.624 $11.429
Number of accumulation units outstanding at end
of period 55,797 47,950 40,309 5
AETNA INDEX PLUS LARGE CAP VP
Value at beginning of period $18.665 $14.397 $11.374(1)
Value at end of period $22.855 $18.665 $14.397
Number of accumulation units outstanding at end
of period 22,097 16,814 3,156
AETNA INDEX PLUS MID CAP VP
Value at beginning of period $10.872 $9.216(4)
Value at end of period $12.403 $10.872
Number of accumulation units outstanding at end
of period 161 45
AETNA INDEX PLUS SMALL CAP VP
Value at beginning of period $8.800 $7.150(4)
Value at end of period $9.604 $8.800
Number of accumulation units outstanding at end
of period 233 78
AETNA INTERNATIONAL VP
Value at beginning of period $10.050(5)
Value at end of period $14.532
Number of accumulation units outstanding at end
of period 36
AETNA LEGACY VP
Value at beginning of period $12.913 $12.257 $10.835(6)
Value at end of period $13.623 $12.913 $12.257
Number of accumulation units outstanding at end
of period 7,896 14,097 14,983
AETNA MONEY MARKET VP
Value at beginning of period $11.055 $10.641 $10.249(1)
Value at end of period $11.443 $11.055 $10.641
Number of accumulation units outstanding at end
of period 14,503 13,218 13,868
AETNA SMALL COMPANY VP
Value at beginning of period $13.574 $13.629 $13.952(7)
Value at end of period $17.497 $13.574 $13.629
Number of accumulation units outstanding at end
of period 3,951 3,581 47
</TABLE>
92
<PAGE>
Condensed Financial Information (continued)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
1999 1998 1997 1996
---- ---- ---- ----
<S> <C> <C> <C> <C>
AETNA VALUE OPPORTUNITY VP
Value at beginning of period $15.960 $13.237 $12.103(8)
Value at end of period $18.801 $15.960 $13.237
Number of accumulation units outstanding at end
of period 2,344 2,432 795
AIM V.I. GROWTH FUND
Value at beginning of period $9.898(9)
Value at end of period $12.048
Number of accumulation units outstanding at end
of period 135
AIM V.I. GROWTH AND INCOME FUND
Value at beginning of period $9.550(10)
Value at end of period $11.695
Number of accumulation units outstanding at end
of period 22
AIM V.I. VALUE FUND
Value at beginning of period $10.442(11)
Value at end of period $11.502
Number of accumulation units outstanding at end
of period 67
CALVERT SOCIAL BALANCED PORTFOLIO
Value at beginning of period $14.749 $12.877 $10.955(1)
Value at end of period $16.306 $14.749 $12.877
Number of accumulation units outstanding at end
of period 3,026 1,709 1,007
FIDELITY VIP EQUITY-INCOME PORTFOLIO
Value at beginning of period $14.961 $13.606 $10.905(1)
Value at end of period $15.672 $14.961 $13.606
Number of accumulation units outstanding at end
of period 11,235 9,414 9,207
FIDELITY VIP GROWTH PORTFOLIO
Value at beginning of period $17.259 $12.560 $10.537(1)
Value at end of period $23.368 $17.259 $12.560
Number of accumulation units outstanding at end
of period 30,213 12,956 2,793
FIDELITY VIP OVERSEAS PORTFOLIO
Value at beginning of period $12.971 $11.678 $10.566(1)
Value at end of period $18.224 $12.971 $11.678
Number of accumulation units outstanding at end
of period 956 468 107
FIDELITY VIP II CONTRAFUND[Reg TM] PORTFOLIO
Value at beginning of period $17.543 $13.701 $11.436(1)
Value at end of period $21.474 $17.543 $13.701
Number of accumulation units outstanding at end
of period 14,452 11,751 8,704
JANUS ASPEN AGGRESSIVE GROWTH
PORTFOLIO
Value at beginning of period $13.911 $10.518 $9.477 $10.000(3)
Value at end of period $30.890 $13.911 $10.518 $9.477
Number of accumulation units outstanding at end
of period 19,942 13,650 12,648 9
JANUS ASPEN BALANCED PORTFOLIO
Value at beginning of period $17.607 $13.310 $11.136(1)
Value at end of period $21.987 $17.607 $13.310
Number of accumulation units outstanding at end
of period 31,263 20,319 2,801
JANUS ASPEN FLEXIBLE INCOME PORTFOLIO
Value at beginning of period $12.855 $11.960 $10.955(6)
Value at end of period $12.867 $12.855 $11.960
Number of accumulation units outstanding at end
of period 669 248 118
JANUS ASPEN GROWTH PORTFOLIO
Value at beginning of period $17.537 $13.123 $11.002(1)
Value at end of period $24.875 $17.537 $13.123
Number of accumulation units outstanding at end
of period 10,931 8,842 5,724
JANUS ASPEN WORLDWIDE GROWTH
PORTFOLIO
Value at beginning of period $17.315 $13.634 $11.483(1)
Value at end of period $28.052 $17.315 $13.634
Number of accumulation units outstanding at end
of period 34,244 23,085 16,828
LEXINGTON NATURAL RESOURCES TRUST
Value at beginning of period $9.480 $11.973 $11.712(1)
Value at end of period $10.655 $9.480 $11.973
Number of accumulation units outstanding at end
of period 147 318 627
</TABLE>
93
<PAGE>
Condensed Financial Information (continued)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
1999 1998 1997 1996
---- ---- ---- ----
<S> <C> <C> <C> <C>
OPPENHEIMER STRATEGIC BOND FUND/VA
Value at beginning of period $9.878 $9.973(12)
Value at end of period $10.006 $9.878
Number of accumulation units outstanding at end
of period 69 3
PPI MFS CAPITAL OPPORTUNITIES
PORTFOLIO
Value at beginning of period $15.438 $12.365 $12.192(13)
Value at end of period $22.629 $15.438 $12.365
Number of accumulation units outstanding at end
of period 1,541 1,256 80
PPI MFS EMERGING EQUITIES PORTFOLIO
Value at beginning of period $12.582 $9.850 $9.976(13)
Value at end of period $18.702 $12.582 $9.850
Number of accumulation units outstanding at end
of period 7,942 5,349 2,413
PPI MFS RESEARCH GROWTH PORTFOLIO
Value at beginning of period $10.479 $8.649 $8.821(13)
Value at end of period $12.805 $10.479 $8.649
Number of accumulation units outstanding at end
of period 1,992 1,814 442
PPI SCUDDER INTERNATIONAL GROWTH
PORTFOLIO
Value at beginning of period $13.396 $11.418 $11.279(13)
Value at end of period $20.905 $13.396 $11.418
Number of accumulation units outstanding at end
of period 3,469 3,208 2,665
PPI T. ROWE PRICE GROWTH PORTFOLIO
Value at beginning of period $16.608 $13.212 $12.951(13)
Value at end of period $20.013 $16.608 $13.212
Number of accumulation units outstanding at end
of period 7,740 5,824 3,802
</TABLE>
- -----------------
(1) Funds were first received in this option during January 1997.
(2) Funds were first received in this option during January 1998.
(3) The initial accumulation unit value was established during May 1996 when
the fund became available under the contract, when funds were first
received in this option or when the applicable daily asset charge was first
utilized.
(4) Funds were first received in this option during August 1998.
(5) Funds were first received in this option during January 1999.
(6) Funds were first received in this option during April 1997.
(7) Funds were first received in this option during September 1997.
(8) Funds were first received in this option during July 1997.
(9) Funds were first received in this option during July 1999.
(10) Funds were first received in this option during October 1999.
(11) Funds were first received in this option during November 1999.
(12) Funds were first received in this option during May 1998.
(13) Funds were first received in this option during November 1997.
94
<PAGE>
Condensed Financial Information
- --------------------------------------------------------------------------------
TABLE XI
FOR CONTRACTS ISSUED UNDER 403(b) PLANS AND DEFERRED COMPENSATION PLANS
WITH TOTAL SEPARATE ACCOUNT CHARGES OF 1.25%
(Selected data for accumulation units outstanding throughout each period)
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
The condensed financial information presented below for each of the periods in
the ten-year period ended December 31, 1999 (as applicable), is derived from the
financial statements of the separate account, which have been audited by KPMG
LLP, independent auditors. The financial statements and the independent
auditors' report thereon for the year ended December 31, 1999 are included in
the Statement of Additional Information.
<TABLE>
<CAPTION>
1999 1998 1997 1996
---- ---- ---- ----
<S> <C> <C> <C> <C>
AETNA ASCENT VP
Value at beginning of period $15.886 $15.422 $13.025 $10.673
Value at end of period $17.940 $15.886 $15.422 $13.025
Number of accumulation units
outstanding at end of period 2,759,063 3,508,677 3,543,367 1,314,997
AETNA BALANCED VP
Value at beginning of period $21.723 $18.811 $15.551 $13.673
Value at end of period $24.372 $21.723 $18.811 $15.551
Number of accumulation units
outstanding at end of period 21,610,375 25,990,902 34,194,804 36,147,028
AETNA BOND VP
Value at beginning of period $14.137 $13.238 $12.377 $12.098
Value at end of period $13.859 $14.137 $13.238 $12.377
Number of accumulation units
outstanding at end of period 11,928,359 15,101,998 18,047,780 20,036,622
AETNA CROSSROADS VP
Value at beginning of period $15.120 $14.456 $12.450 $10.612
Value at end of period $16.458 $15.120 $14.456 $12.450
Number of accumulation units
outstanding at end of period 2,306,431 2,863,812 2,469,082 918,336
AETNA GROWTH VP
Value at beginning of period $17.912 $13.173 $11.635(4)
Value at end of period $23.875 $17.912 $13.173
Number of accumulation units
outstanding at end of period 3,505,798 2,395,680 41,928
AETNA GROWTH AND
INCOME VP
Value at beginning of period $25.094 $22.194 $17.302 $14.077
Value at end of period $29.100 $25.094 $22.194 $17.302
Number of accumulation units
outstanding at end of period 107,941,232 134,233,828 177,627,474 185,328,132
AETNA HIGH YIELD VP
Value at beginning of period $9.212 $9.969(6)
Value at end of period $9.739 $9.212
Number of accumulation units
outstanding at end of period 151,581 91,056
AETNA INDEX PLUS LARGE
CAP VP
Value at beginning of period $18.772 $14.444 $10.924 $10.000(7)
Value at end of period $23.044 $18.772 $14.444 $10.924
Number of accumulation units
outstanding at end of period 10,058,181 7,100,483 4,796,644 879,588
AETNA INDEX PLUS MID
CAP VP
Value at beginning of period $10.891 $10.107(6)
Value at end of period $12.455 $10.891
Number of accumulation units
outstanding at end of period 395,150 146,921
AETNA INDEX PLUS SMALL
CAP VP
Value at beginning of period $8.815 $9.996(6)
Value at end of period $9.645 $8.815
Number of accumulation units
outstanding at end of period 407,203 253,184
AETNA INTERNATIONAL VP
Value at beginning of period $9.765 $10.182(6)
Value at end of period $14.594 $9.765
Number of accumulation units
outstanding at end of period 271,052 97,660
<CAPTION>
1995 1994 1993 1992 1991 1990
---- ---- ---- ---- ---- ----
<S> <C> <C> <C> <C> <C> <C>
AETNA ASCENT VP
Value at beginning of period $10.000(1)
Value at end of period $10.673
Number of accumulation units
outstanding at end of period 393,053
AETNA BALANCED VP
Value at beginning of period $10.868 $11.057 $10.189 $12.736(2) $10.896 $10.437
Value at end of period $13.673 $10.868 $11.057 $10.189 $12.736 $10.896
Number of accumulation units
outstanding at end of period 38,152,395 23,139,604 11,368,365 11,508 22,898,099 17,078,985
AETNA BOND VP
Value at beginning of period $10.360 $10.905 $10.068 $36.789(3) $31.192 $28.943
Value at end of period $12.098 $10.360 $10.905 $10.068 $36.789 $31.192
Number of accumulation units
outstanding at end of period 21,379,976 11,713,354 4,084,142 3,870 7,844,412 6,984,793
AETNA CROSSROADS VP
Value at beginning of period $10.000(1)
Value at end of period $10.612
Number of accumulation units
outstanding at end of period 294,673
AETNA GROWTH VP
Value at beginning of period
Value at end of period
Number of accumulation units
outstanding at end of period
AETNA GROWTH AND
INCOME VP
Value at beginning of period $10.778 $11.020 $10.454 $97.165(5) $77.845 $76.311
Value at end of period $14.077 $10.778 $11.020 $10.454 $97.165 $77.845
Number of accumulation units
outstanding at end of period 188,964,022 114,733,035 44,166,470 21,250 20,948,226 18,362,906
AETNA HIGH YIELD VP
Value at beginning of period
Value at end of period
Number of accumulation units
outstanding at end of period
AETNA INDEX PLUS LARGE
CAP VP
Value at beginning of period
Value at end of period
Number of accumulation units
outstanding at end of period
AETNA INDEX PLUS MID
CAP VP
Value at beginning of period
Value at end of period
Number of accumulation units
outstanding at end of period
AETNA INDEX PLUS SMALL
CAP VP
Value at beginning of period
Value at end of period
Number of accumulation units
outstanding at end of period
AETNA INTERNATIONAL VP
Value at beginning of period
Value at end of period
Number of accumulation units
outstanding at end of period
</TABLE>
95
<PAGE>
Condensed Financial Information (continued)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
1999 1998 1997 1996
---- ---- ---- ----
<S> <C> <C> <C> <C>
AETNA LEGACY VP
Value at beginning of period $14.248 $13.491 $11.930 $10.580
Value at end of period $15.070 $14.248 $13.491 $11.930
Number of accumulation units
outstanding at end of period 1,420,931 11,971,281 1,624,842 513,590
AETNA MONEY MARKET VP
Value at beginning of period $12.447 $11.951 $11.473 $11.026
Value at end of period $12.917 $12.447 $11.951 $11.473
Number of accumulation units
outstanding at end of period 11,010,659 10,102,496 12,191,085 13,898,826
AETNA REAL ESTATE
SECURITIES VP
Value at beginning of period $8.873 $10.126(6)
Value at end of period $8.393 $8.873
Number of accumulation units
outstanding at end of period 140,481 90,949
AETNA SMALL COMPANY
VP
Value at beginning of period $13.633 $13.654 $12.299(9)
Value at end of period $17.617 $13.633 $13.654
Number of accumulation units
outstanding at end of period 1,598,682 1,696,714 253,548
AETNA VALUE
OPPORTUNITY VP
Value at beginning of period $16.030 $13.261 $12.913(10)
Value at end of period $18.930 $16.030 $13.261
Number of accumulation units
outstanding at end of period 987,707 1,079,291 100,928
AIM V.I. CAPITAL
APPRECIATION FUND
Value at beginning of period $10.217(11)
Value at end of period $13.753
Number of accumulation units
outstanding at end of period 77,470
AIM V.I. GROWTH FUND
Value at beginning of period $9.513(11)
Value at end of period $12.069
Number of accumulation units
outstanding at end of period 240,556
AIM V.I. GROWTH AND
INCOME FUND
Value at beginning of period $9.627(11)
Value at end of period $11.716
Number of accumulation units
outstanding at end of period 470,277
AIM V.I. VALUE FUND
Value at beginning of period $9.747(11)
Value at end of period $11.506
Number of accumulation units
outstanding at end of period 405,286
CALVERT SOCIAL
BALANCED PORTFOLIO
Value at beginning of period $20.485 $17.840 $15.044 $13.527
Value at end of period $22.705 $20.485 $17.840 $15.044
Number of accumulation units
outstanding at end of period 1,118,008 1,306,652 1,499,989 1,313,324
FIDELITY VIP EQUITY-
INCOME PORTFOLIO
Value at beginning of period $17.459 $15.837 $12.518 $11.092
Value at end of period $18.334 $17.459 $15.837 $12.518
Number of accumulation units
outstanding at end of period 5,366,553 6,281,077 7,111,490 5,007,706
FIDELITY VIP GROWTH
PORTFOLIO
Value at beginning of period $19.155 $13.904 $11.402 $10.066
Value at end of period $25.999 $19.155 $13.904 $11.402
Number of accumulation units
outstanding at end of period 9,652,436 7,144,438 6,586,698 5,171,098
FIDELITY VIP OVERSEAS
PORTFOLIO
Value at beginning of period $13.662 $12.269 $11.137 $9.961
Value at end of period $19.243 $13.662 $12.269 $11.137
Number of accumulation units
outstanding at end of period 676,303 651,566 718,565 487,709
<CAPTION>
1995 1994 1993 1992 1991 1990
---- ---- ---- ---- ---- ----
<S> <C> <C> <C> <C> <C> <C>
AETNA LEGACY VP
Value at beginning of period $10.000(1)
Value at end of period $10.580
Number of accumulation units
outstanding at end of period 143,637
AETNA MONEY MARKET VP
Value at beginning of period $10.528 $10.241 $10.048 $33.812(8) $32.138 $30.012
Value at end of period $11.026 $10.528 $10.241 $10.048 $33.812 $32.138
Number of accumulation units
outstanding at end of period 12,999,680 7,673,528 2,766,044 825 8,430,082 10,220,110
AETNA REAL ESTATE
SECURITIES VP
Value at beginning of period
Value at end of period
Number of accumulation units
outstanding at end of period
AETNA SMALL COMPANY
VP
Value at beginning of period
Value at end of period
Number of accumulation units
outstanding at end of period
AETNA VALUE
OPPORTUNITY VP
Value at beginning of period
Value at end of period
Number of accumulation units
outstanding at end of period
AIM V.I. CAPITAL
APPRECIATION FUND
Value at beginning of period
Value at end of period
Number of accumulation units
outstanding at end of period
AIM V.I. GROWTH FUND
Value at beginning of period
Value at end of period
Number of accumulation units
outstanding at end of period
AIM V.I. GROWTH AND
INCOME FUND
Value at beginning of period
Value at end of period
Number of accumulation units
outstanding at end of period
AIM V.I. VALUE FUND
Value at beginning of period
Value at end of period
Number of accumulation units
outstanding at end of period
CALVERT SOCIAL
BALANCED PORTFOLIO
Value at beginning of period $10.554 $11.036 $10.278 $10.000(12)
Value at end of period $13.527 $10.554 $11.036 $10.278
Number of accumulation units
outstanding at end of period 966,098 521,141 144,168 2,556
FIDELITY VIP EQUITY-
INCOME PORTFOLIO
Value at beginning of period $10.000(2)
Value at end of period $11.092
Number of accumulation units
outstanding at end of period 1,660,304
FIDELITY VIP GROWTH
PORTFOLIO
Value at beginning of period $10.000(1)
Value at end of period $10.066
Number of accumulation units
outstanding at end of period 1,833,794
FIDELITY VIP OVERSEAS
PORTFOLIO
Value at beginning of period $10.000(1)
Value at end of period $9.961
Number of accumulation units
outstanding at end of period 196,090
</TABLE>
96
<PAGE>
Condensed Financial Information (continued)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
1999 1998 1997 1996
---- ---- ---- ----
<S> <C> <C> <C> <C>
FIDELITY VIP II
CONTRAFUND[Reg TM]
PORTFOLIO
Value at beginning of period $19.601 $15.270 $12.455 $10.397
Value at end of period $24.053 $19.601 $15.270 $12.455
Number of accumulation units
outstanding at end of period 9,498,614 9,575,608 11,399,666 6,812,870
JANUS ASPEN AGGRESSIVE
GROWTH PORTFOLIO
Value at beginning of period $20.951 $15.801 $14.202 $13.322
Value at end of period $46.640 $20.951 $15.801 $14.202
Number of accumulation units
outstanding at end of period 12,224,096 7,536,062 9,271,525 8,835,470
JANUS ASPEN BALANCED
PORTFOLIO
Value at beginning of period $19.908 $15.012 $12.449 $10.850
Value at end of period $24.922 $19.908 $15.012 $12.449
Number of accumulation units
outstanding at end of period 5,686,066 3,192,160 1,911,789 996,510
JANUS ASPEN FLEXIBLE
INCOME PORTFOLIO
Value at beginning of period $15.487 $14.373 $13.022 $12.077
Value at end of period $15.540 $15.487 $14.373 $13.022
Number of accumulation units
outstanding at end of period 1,078,342 1,213,451 934,053 619,287
JANUS ASPEN GROWTH
PORTFOLIO
Value at beginning of period $20.651 $15.414 $12.716 $10.870
Value at end of period $29.366 $20.651 $15.414 $12.716
Number of accumulation units
outstanding at end of period 5,434,098 2,995,268 3,100,436 2,018,527
JANUS ASPEN WORLDWIDE
GROWTH PORTFOLIO
Value at beginning of period $21.288 $16.720 $13.860 $10.877
Value at end of period $34.574 $21.288 $16.720 $13.860
Number of accumulation units
outstanding at end of period 15,478,181 14,519,620 17,194,687 8,715,825
LEXINGTON NATURAL
RESOURCES TRUST
Value at beginning of period $12.336 $15.541 $14.686 $11.720
Value at end of period $13.900 $12.336 $15.541 $14.686
Number of accumulation units
outstanding at end of period 489,113 755,984 1,786,409 966,482
OPPENHEIMER GLOBAL
SECURITIES FUND/VA
Value at beginning of period $10.018 $10.079(6)
Value at end of period $15.681 $10.018
Number of accumulation units
outstanding at end of period 184,292 39,441
OPPENHEIMER STRATEGIC
BOND FUND/VA
Value at beginning of period $9.895 $10.015(6)
Value at end of period $10.048 $9.895
Number of accumulation units
outstanding at end of period 90,616 71,074
PPI MFS CAPITAL
OPPORTUNITIES
PORTFOLIO
Value at beginning of period $24.145 $19.291 $19.016(14)
Value at end of period $35.480 $24.145 $19.291
Number of accumulation units
outstanding at end of period 2,035,825 2,186,996 2,879,845
PPI MFS EMERGING
EQUITIES PORTFOLIO
Value at beginning of period $19.114 $14.927 $15.114(14)
Value at end of period $28.481 $19.114 $14.927
Number of accumulation units
outstanding at end of period 9,740,294 11,377,408 16,549,322
PPI MFS RESEARCH
GROWTH PORTFOLIO
Value at beginning of period $16.758 $13.795 $14.067(14)
Value at end of period $20.527 $16.758 $13.795
Number of accumulation units
outstanding at end of period 7,196,329 8,758,123 11,539,850
<CAPTION>
1995 1994 1993 1992 1991 1990
---- ---- ---- ---- ---- ----
<S> <C> <C> <C> <C> <C> <C>
FIDELITY VIP II
CONTRAFUND[Reg TM]
PORTFOLIO
Value at beginning of period $10.000(1)
Value at end of period $10.397
Number of accumulation units
outstanding at end of period 2,116,732
JANUS ASPEN AGGRESSIVE
GROWTH PORTFOLIO
Value at beginning of period $10.581 $10.000(13)
Value at end of period $13.322 $10.581
Number of accumulation units
outstanding at end of period 4,887,060 753,862
JANUS ASPEN BALANCED
PORTFOLIO
Value at beginning of period $10.000(1)
Value at end of period $10.850
Number of accumulation units
outstanding at end of period 93,304
JANUS ASPEN FLEXIBLE
INCOME PORTFOLIO
Value at beginning of period $9.873 $10.000(13)
Value at end of period $12.077 $9.873
Number of accumulation units
outstanding at end of period 315,361 28,543
JANUS ASPEN GROWTH
PORTFOLIO
Value at beginning of period $10.000(1)
Value at end of period $10.870
Number of accumulation units
outstanding at end of period 259,196
JANUS ASPEN WORLDWIDE
GROWTH PORTFOLIO
Value at beginning of period $10.000(1)
Value at end of period $10.877
Number of accumulation units
outstanding at end of period 1,036,040
LEXINGTON NATURAL
RESOURCES TRUST
Value at beginning of period $10.154 $10.877 $9.832 $10.000(12)
Value at end of period $11.720 $10.154 $10.877 $9.832
Number of accumulation units
outstanding at end of period 711,892 703,676 135,614 561
OPPENHEIMER GLOBAL
SECURITIES FUND/VA
Value at beginning of period
Value at end of period
Number of accumulation units
outstanding at end of period
OPPENHEIMER STRATEGIC
BOND FUND/VA
Value at beginning of period
Value at end of period
Number of accumulation units
outstanding at end of period
PPI MFS CAPITAL
OPPORTUNITIES
PORTFOLIO
Value at beginning of period
Value at end of period
Number of accumulation units
outstanding at end of period
PPI MFS EMERGING
EQUITIES PORTFOLIO
Value at beginning of period
Value at end of period
Number of accumulation units
outstanding at end of period
PPI MFS RESEARCH
GROWTH PORTFOLIO
Value at beginning of period
Value at end of period
Number of accumulation units
outstanding at end of period
</TABLE>
97
<PAGE>
Condensed Financial Information (continued)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
1999 1998 1997 1996 1995 1994 1993 1992 1991 1990
---- ---- ---- ---- ---- ---- ---- ---- ---- ----
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
PPI SCUDDER
INTERNATIONAL GROWTH
PORTFOLIO
Value at beginning of period $19.978 $16.986 $16.776(14)
Value at end of period $31.255 $19.978 $16.986
Number of accumulation units
outstanding at end of period 3,509,645 4,030,904 6,242,299
PPI T. ROWE PRICE
GROWTH EQUITY
PORTFOLIO
Value at beginning of period $18.146 $14.400 $14.112(14)
Value at end of period $21.922 $18.146 $14.400
Number of accumulation units
outstanding at end of period 5,814,568 6,541,819 8,296,964
</TABLE>
- -----------------
(1) The initial accumulation unit value was established at $10.000 during
August 1995 when the fund became available under the contract.
(2) The accumulation unit value was converted to $10.000 on August 21, 1992
upon the commencement of a new administrative system. Immediately prior to
that date, the accumulation unit value of the fund was $13.118. On the
date of conversion, additional units were issued so that account values
were not changed as a result of the conversion.
(3) The accumulation unit value was converted to $10.000 on August 21, 1992
upon the commencement of a new administrative system. Immediately prior to
that date, the accumulation unit value of the fund was $38.521. On the
date of conversion, additional units were issued so that account values
were not changed as a result of the conversion.
(4) Funds were first received in this option during June 1997.
(5) The accumulation unit value was converted to $10.000 on August 21, 1992
upon the commencement of a new administrative system. Immediately prior to
that date, the accumulation unit value of the fund was $97.817. On the
date of conversion, additional units were issued so that account values
were not changed as a result of the conversion.
(6) Funds were first received in this option during May 1998.
(7) The initial accumulation unit value was established at $10.000 during
August 1996, when the portfolio became available under the contract.
(8) The accumulation unit value was converted to $10.000 on August 21, 1992
upon the commencement of a new administrative system. Immediately prior to
that date, the accumulation unit value of the fund was $34.397. On the
date of conversion, additional units were issued so that account value
were not changed as a result of the conversion.
(9) Funds were first received in this option during July 1997.
(10) Funds were first received in this option during August 1997.
(11) Funds were first received in this option during May 1999.
(12) The initial accumulation unit value was established at $10.000 on August
21, 1992, the date on which the fund/portfolio became available under the
contract.
(13) The initial accumulation unit value was established at $10.000 during
October 1994, when the funds were first received in this option.
(14) Funds were first received in this option during November 1997.
98
<PAGE>
Condensed Financial Information
- --------------------------------------------------------------------------------
TABLE XII
FOR MULTIPLE OPTION CONTRACTS ISSUED TO
SAN BERNARDINO COUNTY AND MACOMB COUNTY
WITH TOTAL SEPARATE ACCOUNT CHARGES OF 1.25%
(Selected data for accumulation units outstanding throughout each period)
================================================================================
The condensed financial information presented below for each of the periods in
the ten-year period ended December 31, 1999 (as applicable), is derived from the
financial statements of the separate account, which have been audited by KPMG
LLP, independent auditors. The financial statements and the independent
auditors' report thereon for the year ended December 31, 1999 are included in
the Statement of Additional Information.
<TABLE>
<CAPTION>
1999 1998 1997 1996
------- ------- -------- --------
<S> <C> <C> <C> <C>
AETNA ASCENT VP
Value at beginning of period $15.886 $15.422 $13.291(1)
Value at end of period $17.940 $15.886 $15.422
Number of accumulation units
outstanding at end of period 33,852 21,430 380
AETNA BALANCED VP, INC
Value at beginning of period $28.524 $24.700 $20.419 $17.954
Value at end of period $32.002 $28.524 $24.700 $20.419
Number of accumulation units
outstanding at end of period 2,155,445 2,294,877 2,160,305 2,716,641
AETNA BOND VP
Value at beginning of period $54.819 $51.330 $47.992 $46.913
Value at end of period $53.738 $54.819 $51.330 $47.992
Number of accumulation units
outstanding at end of period 867,416 994,987 959,336 835,724
AETNA CROSSROADS VP
Value at beginning of period $15.120 $14.456 $12.577(1)
Value at end of period $16.458 $15.120 $14.456
Number of accumulation units
outstanding at end of period 30,738 31,468 873
AETNA GROWTH VP
Value at beginning of period $13.597 $11.392(2)
Value at end of period $18.124 $13.597
Number of accumulation units
outstanding at end of period 781 17
AETNA GROWTH AND
INCOME VP
Value at beginning of period $245.765 $217.359 $169.448 $137.869
Value at end of period $284.994 $245.765 $217.359 $169.448
Number of accumulation units
outstanding at end of period 1,555,542 1,747,097 1,826,355 2,071,139
AETNA INDEX PLUS LARGE
CAP VP
Value at beginning of period $18.772 $14.444 $14.493(3)
Value at end of period $23.044 $18.772 $14.444
Number of accumulation units
outstanding at end of period 2,748,955 1,302,825 17,771
AETNA INDEX PLUS MID
CAP VP
Value at beginning of period $11.338 $9.928(4)
Value at end of period $12.967 $11.338
Number of accumulation units
outstanding at end of period 73,984 35,201
AETNA INDEX PLUS SMALL
CAP VP
Value at beginning of period $ 9.157 $10.193(4)
Value at end of period $10.019 $9.157
Number of accumulation units
outstanding at end of period 118,433 81,388
AETNA LEGACY VP
Value at beginning of period $14.248 $13.491 $12.296(5)
Value at end of period $15.070 $14.248 $13.491
Number of accumulation units
outstanding at end of period 46,462 95,526 2,279
AETNA MONEY MARKET VP
Value at beginning of period $42.883 $41.174 $39.528 $37.988
Value at end of period $44.501 $42.883 $41.174 $39.528
Number of accumulation units
outstanding at end of period 845,679 564,537 455,502 597,656
<CAPTION>
1995 1994 1993 1992 1991 1990
-------- ---------- ---------- ---------- ---------- ----------
<S> <C> <C> <C> <C> <C> <C>
AETNA ASCENT VP
Value at beginning of period
Value at end of period
Number of accumulation units
outstanding at end of period
AETNA BALANCED VP, INC
Value at beginning of period $14.270 $14.519 $13.379 $12.736 $10.896 $10.437
Value at end of period $17.954 $14.270 $14.519 $13.379 $12.736 $10.896
Number of accumulation units
outstanding at end of period 9,193,181 21,990,186 30,784,750 34,802,433 22,898,099 17,078,985
AETNA BOND VP
Value at beginning of period $40.173 $42.283 $39.038 $36.789 $31.192 $28.943
Value at end of period $46.913 $40.173 $42.283 $39.038 $36.789 $31.192
Number of accumulation units
outstanding at end of period 2,377,622 5,108,720 8,210,666 8,507,292 7,844,412 6,984,793
AETNA CROSSROADS VP
Value at beginning of period
Value at end of period
Number of accumulation units
outstanding at end of period
AETNA GROWTH VP
Value at beginning of period
Value at end of period
Number of accumulation units
outstanding at end of period
AETNA GROWTH AND
INCOME VP
Value at beginning of period $105.558 $107.925 $102.383 $ 97.165 $ 77.845 $76.311
Value at end of period $137.869 $105.558 $107.925 $102.383 $ 97.165 $77.845
Number of accumulation units
outstanding at end of period 6,364,000 13,966,072 21,148,863 24,201,565 20,948,226 18,362,906
AETNA INDEX PLUS LARGE
CAP VP
Value at beginning of period
Value at end of period
Number of accumulation units
outstanding at end of period
AETNA INDEX PLUS MID
CAP VP
Value at beginning of period
Value at end of period
Number of accumulation units
outstanding at end of period
AETNA INDEX PLUS SMALL
CAP VP
Value at beginning of period
Value at end of period
Number of accumulation units
outstanding at end of period
AETNA LEGACY VP
Value at beginning of period
Value at end of period
Number of accumulation units
outstanding at end of period
AETNA MONEY MARKET VP
Value at beginning of period $36.271 $35.282 $34.619 $33.812 $32.138 $30.012
Value at end of period $37.988 $36.271 $35.282 $34.619 $33.812 $32.138
Number of accumulation units
outstanding at end of period 1,836,260 3,679,802 5,086,515 7,534,662 8,430,082 10,220,110
</TABLE>
99
<PAGE>
Condensed Financial Information (continued)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
1999 1998 1997 1996
--------- -------- -------- ---------
<S> <C> <C> <C> <C>
AETNA VALUE
OPPORTUNITY VP
Value at beginning of period $12.088 $11.472(4)
Value at end of period $14.274 $12.088
Number of accumulation units
outstanding at end of period 74,768 33,957
CALVERT SOCIAL
BALANCED PORTFOLIO
Value at beginning of period $27.186 $23.675 $19.965 $17.951
Value at end of period $30.131 $27.186 $23.675 $19.965
Number of accumulation units
outstanding at end of period 880,319 917,567 929,282 898,279
FIDELITY VIP EQUITY-
INCOME PORTFOLIO
Value at beginning of period $18.285 $16.587 $13.110 $11.617
Value at end of period $19.201 $18.285 $16.587 $13.110
Number of accumulation units
outstanding at end of period 2,271,494 2,533,673 2,139,178 1,454,755
FIDELITY VIP GROWTH
PORTFOLIO
Value at beginning of period $19.406 $14.087 $11.843(7)
Value at end of period $26.340 $19.406 $14.087
Number of accumulation units
outstanding at end of period 78 72 29
FIDELITY VIP HIGH
INCOME PORTFOLIO
Value at beginning of period $9.023
Value at end of period $9.638
Number of accumulation units
outstanding at end of period 194,440
FIDELITY VIP OVERSEAS
PORTFOLIO
Value at beginning of period $11.400 $10.197
Value at end of period $12.560 $11.400
Number of accumulation units
outstanding at end of period 0 1,302
FIDELITY VIP II ASSET
MANAGER PORTFOLIO
Value at beginning of period $16.719
Value at end of period $18.343
Number of accumulation units
outstanding at end of period 1,511,789
FIDELITY VIP II
CONTRAFUND[Reg TM]
PORTFOLIO
Value at beginning of period $22.177 $17.276 $14.092 $11.763
Value at end of period $27.214 $22.177 $17.276 $14.092
Number of accumulation units
outstanding at end of period 3,780,287 3,333,320 2,706,862 1,522,169
FIDELITY VIP II INDEX 500
PORTFOLIO
Value at beginning of period $23.650
Value at end of period $28.147
Number of accumulation units
outstanding at end of period 4,354,723
JANUS ASPEN AGGRESSIVE
GROWTH PORTFOLIO
Value at beginning of period $24.098 $18.174 $16.334 $15.323
Value at end of period $53.644 $24.098 $18.174 $16.334
Number of accumulation units
outstanding at end of period 3,274,450 2,142,130 1,939,607 1,893,718
JANUS ASPEN BALANCED
PORTFOLIO
Value at beginning of period $19.914 $15.016 $12.453 $10.853
Value at end of period $24.929 $19.914 $15.016 $12.453
Number of accumulation units
outstanding at end of period 476 3,698 7,873 231
JANUS ASPEN FLEXIBLE
INCOME PORTFOLIO
Value at beginning of period $15.548 $14.430 $13.074 $12.124
Value at end of period $15.601 $15.548 $14.430 $13.074
Number of accumulation units
outstanding at end of period 6,629 8,967 5,211 3,761
JANUS ASPEN GROWTH
PORTFOLIO
Value at beginning of period $22.529 $16.816 $13.872 $11.859
Value at end of period $32.036 $22.529 $16.816 $13.872
Number of accumulation units
outstanding at end of period 2,721,885 1,354,047 1,109,942 663,945
<CAPTION>
1995 1994 1993 1992 1991 1990
-------- ------- -------- ------- ------- --------
<S> <C> <C> <C> <C> <C> <C>
AETNA VALUE
OPPORTUNITY VP
Value at beginning of period
Value at end of period
Number of accumulation units
outstanding at end of period
CALVERT SOCIAL
BALANCED PORTFOLIO
Value at beginning of period $13.990 $14.640 $13.726 $12.913 $11.233 $10.568
Value at end of period $17.951 $13.990 $14.640 $13.726 $12.913 $11.233
Number of accumulation units
outstanding at end of period 856,361 743,464 705,415 503,006 355,851 148,576
FIDELITY VIP EQUITY-
INCOME PORTFOLIO
Value at beginning of period $10.000(6)
Value at end of period $11.617
Number of accumulation units
outstanding at end of period 628,582
FIDELITY VIP GROWTH
PORTFOLIO
Value at beginning of period
Value at end of period
Number of accumulation units
outstanding at end of period
FIDELITY VIP HIGH
INCOME PORTFOLIO
Value at beginning of period
Value at end of period
Number of accumulation units
outstanding at end of period
FIDELITY VIP OVERSEAS
PORTFOLIO
Value at beginning of period $10.000(8)
Value at end of period $10.197
Number of accumulation units
outstanding at end of period
FIDELITY VIP II ASSET
MANAGER PORTFOLIO
Value at beginning of period
Value at end of period
Number of accumulation units
outstanding at end of period
FIDELITY VIP II
CONTRAFUND[Reg TM]
PORTFOLIO
Value at beginning of period $10.000(6)
Value at end of period $11.763
Number of accumulation units
outstanding at end of period 525,476
FIDELITY VIP II INDEX 500
PORTFOLIO
Value at beginning of period
Value at end of period
Number of accumulation units
outstanding at end of period
JANUS ASPEN AGGRESSIVE
GROWTH PORTFOLIO
Value at beginning of period $12.169 $10.000(9)
Value at end of period $15.323 $12.169
Number of accumulation units
outstanding at end of period 1,280,953 393,553
JANUS ASPEN BALANCED
PORTFOLIO
Value at beginning of period $10.000(8)
Value at end of period $10.853
Number of accumulation units
outstanding at end of period 161
JANUS ASPEN FLEXIBLE
INCOME PORTFOLIO
Value at beginning of period $9.911 $10.000(10)
Value at end of period $12.124 $9.911
Number of accumulation units
outstanding at end of period 3,345 1,555
JANUS ASPEN GROWTH
PORTFOLIO
Value at beginning of period $10.000(8)
Value at end of period $11.859
Number of accumulation units
outstanding at end of period 109,717
</TABLE>
101
<PAGE>
Condensed Financial Information (continued)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
1999 1998 1997 1996
--------- ------- --------- ---------
<S> <C> <C> <C> <C>
JANUS ASPEN WORLDWIDE
GROWTH PORTFOLIO
Value at beginning of period $23.797 $18.690 $15.493 $12.158
Value at end of period $38.648 $23.797 $18.690 $15.493
Number of accumulation units
outstanding at end of period 5,548,674 4,687,167 3,873,511 2,090,908
LEXINGTON EMERGING
MARKETS FUND
Value at beginning of period $ 5.470
Value at end of period $12.315
Number of accumulation units
outstanding at end of period 940,817
LEXINGTON NATURAL
RESOURCES TRUST
Value at beginning of period $11.433 $14.403 $13.611 $10.862
Value at end of period $12.882 $11.433 $14.403 $13.611
Number of accumulation units
outstanding at end of period 437,491 534,962 650,486 587,248
MFS TOTAL RETURN
SERIES
Value at beginning of period $10.531
Value at end of period $10.720
Number of accumulation units
outstanding at end of period 63,822
OPPENHEIMER GLOBAL
SECURITIES FUND/VA
Value at beginning of period $10.303 $10.077(11)
Value at end of period $16.126 $10.303
Number of accumulation units
outstanding at end of period 59,571 20,548
OPPENHEIMER STRATEGIC
BOND FUND/VA
Value at beginning of period $9.935 $10.055(4)
Value at end of period $10.089 $9.935
Number of accumulation units
outstanding at end of period 173,219 100,555
PPI MFS CAPITAL
OPPORTUNITIES
PORTFOLIO
Value at beginning of period $29.339 $23.440 $23.106(12)
Value at end of period $43.112 $29.339 $23.440
Number of accumulation units
outstanding at end of period 2,448,587 2,244,308 2,018,219
PPI MFS EMERGING
EQUITIES PORTFOLIO
Value at beginning of period $19.268 $15.046 $15.236(12)
Value at end of period $28.710 $19.268 $15.046
Number of accumulation units
outstanding at end of period 3,024,975 3,101,880 2,707,904
PPI MFS RESEARCH
GROWTH PORTFOLIO
Value at beginning of period $14.528 $11.960 $12.195(12)
Value at end of period $17.796 $14.528 $11.960
Number of accumulation units
outstanding at end of period 194,296 1,379,653 232,418
PPI SCUDDER
INTERNATIONAL GROWTH
PORTFOLIO
Value at beginning of period $20.829 $17.709 $17.490(12)
Value at end of period $32.585 $20.829 $17.709
Number of accumulation units
outstanding at end of period 2,807,485 2,962,631 3,237,710
PPI T. ROWE PRICE
GROWTH EQUITY
PORTFOLIO
Value at beginning of period $20.929 $16.608 $16.276(12)
Value at end of period $25.283 $20.929 $16.608
Number of accumulation units
outstanding at end of period 1,549,310 1,564,888 1,317,058
<CAPTION>
1995 1994 1993 1992 1991 1990
--------- -------- -------- --------- --------- --------
<S> <C> <C> <C> <C> <C> <C>
JANUS ASPEN WORLDWIDE
GROWTH PORTFOLIO
Value at beginning of period $10.000(8)
Value at end of period $12.158
Number of accumulation units
outstanding at end of period 314,653
LEXINGTON EMERGING
MARKETS FUND
Value at beginning of period
Value at end of period
Number of accumulation units
outstanding at end of period
LEXINGTON NATURAL
RESOURCES TRUST
Value at beginning of period $9.412 $10.071 $9.193 $9.018 $9.608 $11.441
Value at end of period $10.862 $9.412 $10.071 $9.193 $9.018 $9.608
Number of accumulation units
outstanding at end of period 530,562 533,016 341,771 198,338 144,139 75,052
MFS TOTAL RETURN
SERIES
Value at beginning of period
Value at end of period
Number of accumulation units
outstanding at end of period
OPPENHEIMER GLOBAL
SECURITIES FUND/VA
Value at beginning of period
Value at end of period
Number of accumulation units
outstanding at end of period
OPPENHEIMER STRATEGIC
BOND FUND/VA
Value at beginning of period
Value at end of period
Number of accumulation units
outstanding at end of period
PPI MFS CAPITAL
OPPORTUNITIES
PORTFOLIO
Value at beginning of period
Value at end of period
Number of accumulation units
outstanding at end of period
PPI MFS EMERGING
EQUITIES PORTFOLIO
Value at beginning of period
Value at end of period
Number of accumulation units
outstanding at end of period
PPI MFS RESEARCH
GROWTH PORTFOLIO
Value at beginning of period
Value at end of period
Number of accumulation units
outstanding at end of period
PPI SCUDDER
INTERNATIONAL GROWTH
PORTFOLIO
Value at beginning of period
Value at end of period
Number of accumulation units
outstanding at end of period
PPI T. ROWE PRICE
GROWTH EQUITY
PORTFOLIO
Value at beginning of period
Value at end of period
Number of accumulation units
outstanding at end of period
</TABLE>
101
<PAGE>
Condensed Financial Information (continued)
- --------------------------------------------------------------------------------
(1) Funds were first received in this option during February 1997.
(2) Funds were first received in this option during September 1998.
(3) Funds were first received in this option during December 1997.
(4) Funds were first received in this option during May 1998.
(5) Funds were first received in this option during February 1997.
(6) The initial accumulation unit value was established at $10.000 during May
1995, when the fund became available under the contract.
(7) Funds were first received in this option during January 1997.
(8) The initial accumulation unit value was established at $10.000 during July
1995, when the fund became available under the contract.
(9) The initial accumulation unit value was established at $10.000 during June
1994, when funds were first received in this option.
(10) The initial accumulation unit value was established at $10.000 during
November 1994, when funds were first received in this option.
(11) Funds were first received in this option during June 1998.
(12) Funds were first received in this option during November 1997.
102
<PAGE>
Condensed Financial Information
- --------------------------------------------------------------------------------
TABLE XIII
FOR CONTRACTS ISSUED UNDER 403(b) PLANS AND DEFERRED COMPENSATION PLANS
WITH TOTAL SEPARATE ACCOUNT CHARGES OF 1.50%
(INCLUDING A 0.25% ADMINISTRATIVE EXPENSE CHARGE BEGINNING APRIL 7, 1997)
(Selected data for accumulation units outstanding throughout each period)
- --------------------------------------------------------------------------------
The condensed financial information presented below for each of the periods in
the three-year period ended December 31, 1999 (as applicable), is derived from
the financial statements of the separate account, which have been audited by
KPMG LLP, independent auditors. The financial statements and the independent
auditors' report thereon for the year ended December 31, 1999 are included in
the Statement of Additional Information.
<TABLE>
<CAPTION>
1999 1998 1997
------- --------- -------
<S> <C> <C> <C>
AETNA ASCENT VP
Value at beginning of period $15.818 $15.394 $13.020(1)
Value at end of period $17.818 $15.818 $15.394
Number of accumulation units outstanding at end of period 40,362 38,620 29,840
AETNA BALANCED VP
Value at beginning of period $21.629 $18.776 $15.674(1)
Value at end of period $24.206 $21.629 $18.776
Number of accumulation units outstanding at end of period 352,495 385,862 478,117
AETNA BOND VP
Value at beginning of period $14.076 $13.213 $12.302(1)
Value at end of period $13.764 $14.076 $13.213
Number of accumulation units outstanding at end of period 186,303 199,388 215,650
AETNA CROSSROADS VP
Value at beginning of period $15.055 $14.430 $12.449(1)
Value at end of period $16.346 $15.055 $14.430
Number of accumulation units outstanding at end of period 32,067 32,997 26,483
AETNA GROWTH VP(10)
Value at beginning of period $17.834 $13.149 $12.739(2)
Value at end of period $23.713 $17.834 $13.149
Number of accumulation units outstanding at end of period 63,831 36,839 3,326
AETNA GROWTH AND INCOME VP
Value at beginning of period $24.986 $22.153 $17.861(1)
Value at end of period $28.902 $24.986 $22.153
Number of accumulation units outstanding at end of period 1,449,638 1,587,351 1,699,982
AETNA HIGH YIELD VP
Value at beginning of period $9.196 $9.616(3)
Value at end of period $9.698 $9.196
Number of accumulation units outstanding at end of period 707 65
AETNA INDEX PLUS LARGE CAP VP
Value at beginning of period $18.691 $14.418 $11.345(1)
Value at end of period $22.887 $18.691 $14.418
Number of accumulation units outstanding at end of period 118,788 68,841 27,945
AETNA INDEX PLUS MID CAP VP
Value at beginning of period $10.872 $9.946(4)
Value at end of period $12.403 $10.872
Number of accumulation units outstanding at end of period 3,733 203
AETNA INDEX PLUS SMALL CAP VP
Value at beginning of period $8.800 $9.775(5)
Value at end of period $9.604 $8.800
Number of accumulation units outstanding at end of period 1,705 598
AETNA INTERNATIONAL VP
Value at beginning of period $9.748 $9.737(6)
Value at end of period $14.532 $9.748
Number of accumulation units outstanding at end of period 4,118 1,095
AETNA LEGACY VP
Value at beginning of period $14.187 $13.467 $11.873(1)
Value at end of period $14.967 $14.187 $13.467
Number of accumulation units outstanding at end of period 23,515 32,088 14,817
AETNA MONEY MARKET VP
Value at beginning of period $12.393 $11.929 $11.592(1)
Value at end of period $12.829 $12.393 $11.929
Number of accumulation units outstanding at end of period 136,761 123,429 176,703
AETNA REAL ESTATE SECURITIES VP
Value at beginning of period $8.857 $8.524(7)
Value at end of period $8.358 $8.857
Number of accumulation units outstanding at end of period 1,197 1,342
AETNA SMALL COMPANY VP
Value at beginning of period $13.574 $13.629 $13.629(2)
Value at end of period $17.497 $13.574 $13.629
Number of accumulation units outstanding at end of period 18,033 21,070 82
</TABLE>
103
<PAGE>
Condensed Financial Information (continued)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
1999 1998 1997
--------- ------- --------
<S> <C> <C> <C>
AETNA VALUE OPPORTUNITY VP
Value at beginning of period $15.960 $13.237 $13.237(2)
Value at end of period $18.801 $15.960 $13.237
Number of accumulation units outstanding at end of period 12,803 15,870 84
AIM V.I. CAPITAL APPRECIATION FUND
Value at beginning of period $10.165(8)
Value at end of period $13.729
Number of accumulation units outstanding at end of period 2,372
AIM V.I. GROWTH FUND
Value at beginning of period $10.209(10)
Value at end of period $12.048
Number of accumulation units outstanding at end of period 2,771
AIM V.I. GROWTH AND INCOME FUND
Value at beginning of period $9.684(9)
Value at end of period $11.695
Number of accumulation units outstanding at end of period 5,151
AIM V.I. VALUE FUND
Value at beginning of period $9.842(9)
Value at end of period $11.486
Number of accumulation units outstanding at end of period 2,077
CALVERT SOCIAL BALANCED PORTFOLIO
Value at beginning of period $20.397 $17.808 $14.934(1)
Value at end of period $22.550 $20.397 $17.808
Number of accumulation units outstanding at end of period 27,661 24,487 20,521
FIDELITY VIP EQUITY-INCOME PORTFOLIO
Value at beginning of period $17.384 $15.808 $12.711(1)
Value at end of period $18.209 $17.384 $15.808
Number of accumulation units outstanding at end of period 145,786 222,658 117,588
FIDELITY VIP GROWTH PORTFOLIO
Value at beginning of period $19.072 $13.879 $11.373(1)
Value at end of period $25.822 $19.072 $13.879
Number of accumulation units outstanding at end of period 200,009 228,969 104,982
FIDELITY VIP OVERSEAS PORTFOLIO
Value at beginning of period $13.603 $12.247 $11.253(1)
Value at end of period $19.112 $13.603 $12.247
Number of accumulation units outstanding at end of period 12,105 11,523 8,098
FIDELITY VIP II CONTRAFUND[Reg TM] PORTFOLIO
Value at beginning of period $19.516 $15.242 $12.388(1)
Value at end of period $23.889 $19.516 $15.242
Number of accumulation units outstanding at end of period 170,565 157,444 146,381
JANUS ASPEN AGGRESSIVE GROWTH PORTFOLIO
Value at beginning of period $20.861 $15.773 $12.594(1)
Value at end of period $46.323 $20.861 $15.773
Number of accumulation units outstanding at end of period 175,442 100,075 85,304
JANUS ASPEN BALANCED PORTFOLIO
Value at beginning of period $19.822 $14.984 $12.760(1)
Value at end of period $24.752 $19.822 $14.984
Number of accumulation units outstanding at end of period 84,774 53,980 19,967
JANUS ASPEN FLEXIBLE INCOME PORTFOLIO
Value at beginning of period $15.420 $14.347 $13.025(1)
Value at end of period $15.434 $15.420 $14.347
Number of accumulation units outstanding at end of period 13,514 14,524 8,189
JANUS ASPEN GROWTH PORTFOLIO
Value at beginning of period $20.562 $15.386 $12.975(1)
Value at end of period $29.166 $20.562 $15.386
Number of accumulation units outstanding at end of period 96,294 56,525 53,182
JANUS ASPEN WORLDWIDE GROWTH PORTFOLIO
Value at beginning of period $21.196 $16.689 $14.439(1)
Value at end of period $34.339 $21.196 $16.689
Number of accumulation units outstanding at end of period 215,248 182,951 168,191
LEXINGTON NATURAL RESOURCES TRUST
Value at beginning of period $12.283 $15.512 $13.756(1)
Value at end of period $13.805 $12.283 $15.512
Number of accumulation units outstanding at end of period 10,231 14,342 26,426
OPPENHEIMER GLOBAL SECURITIES FUND/VA
Value at beginning of period $10.001 $9.728(6)
Value at end of period $15.615 $10.001
Number of accumulation units outstanding at end of period 7,932 152
OPPENHEIMER STRATEGIC BOND FUND/VA
Value at beginning of period $9.878 $9.666(11)
Value at end of period $10.006 $9.878
Number of accumulation units outstanding at end of period 234 11
PPI MFS CAPITAL OPPORTUNITIES PORTFOLIO
Value at beginning of period $24.041 $19.256 $18.985(12)
Value at end of period $35.239 $24.041 $19.256
Number of accumulation units outstanding at end of period 34,760 28,002 25,830
</TABLE>
104
<PAGE>
Condensed Financial Information (continued)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
1999 1998 1997
-------- -------- ---------
<S> <C> <C> <C>
PPI MFS EMERGING EQUITIES PORTFOLIO
Value at beginning of period $19.032 $14.899 $15.090(12)
Value at end of period $28.288 $19.032 $14.899
Number of accumulation units outstanding at end of period 133,579 135,641 131,565
PPI MFS RESEARCH GROWTH PORTFOLIO
Value at beginning of period $16.685 $13.770 $14.044(12)
Value at end of period $20.388 $16.685 $13.770
Number of accumulation units outstanding at end of period 139,056 146,728 149,523
PPI SCUDDER INTERNATIONAL GROWTH PORTFOLIO
Value at beginning of period $19.892 $16.955 $16.749(12)
Value at end of period $31.043 $19.892 $16.955
Number of accumulation units outstanding at end of period 52,692 45,320 48,385
PPI T. ROWE PRICE GROWTH EQUITY PORTFOLIO
Value at beginning of period $18.068 $14.374 $14.090(12)
Value at end of period $21.773 $18.068 $14.374
Number of accumulation units outstanding at end of period 93,176 91,620 79,799
</TABLE>
- -----------------
(1) Funds were first received in this option during April 1997.
(2) Funds were first received in this option during December 1997.
(3) Funds were first received in this option during August 1998.
(4) Funds were first received in this option during July 1998.
(5) Funds were first received in this option during May 1998.
(6) Funds were first received in this option during June 1998.
(7) Funds were first received in this option during September 1998.
(8) Funds were first received in this option during August 1999.
(9) Funds were first received in this option during June 1999.
(10) Funds were first received in this option during July 1999.
(11) Funds were first received in this option during November 1998.
(12) Funds were first received in this option during November 1997.
105
<PAGE>
Condensed Financial Information
- --------------------------------------------------------------------------------
TABLE XIV
FOR CONTRACTS CONTAINING LIMITS ON FEES ISSUED UNDER 403(b) PLANS
AND DEFERRED COMPENSATION PLANS
(Selected data for accumulation units outstanding throughout each period)
- --------------------------------------------------------------------------------
The condensed financial information presented below for each of the periods in
the three-year period ended December 31, 1999 (as applicable), is derived from
the financial statements of the separate account, which have been audited by
KPMG LLP, independent auditors. The financial statements and the independent
auditors' report thereon for the year ended December 31, 1999 are included in
the Statement of Additional Information.
<TABLE>
<CAPTION>
1999 1998 1997
------- --------- --------
<S> <C> <C> <C>
AETNA ASCENT VP
Value at beginning of period $15.974 $15.453 $13.971(1)
Value at end of period $18.102 $15.974 $15.453
Number of accumulation units outstanding at end of period 7,679 9,888 10,257
AETNA BALANCED VP
Value at beginning of period $21.808 $18.837 $16.739(1)
Value at end of period $24.529 $21.808 $18.837
Number of accumulation units outstanding at end of period 343,842 429,954 454,232
AETNA BOND VP
Value at beginning of period $14.171 $13.249 $12.629(1)
Value at end of period $13.912 $14.171 $13.249
Number of accumulation units outstanding at end of period 347,131 421,225 453,723
AETNA CROSSROADS VP
Value at beginning of period $15.204 $14.485 $13.199(1)
Value at end of period $16.607 $15.204 $14.485
Number of accumulation units outstanding at end of period 47,768 50,297 50,297
AETNA GROWTH VP
Value at beginning of period $17.912 $13.173 $12.615(2)
Value at end of period $23.875 $17.912 $13.173
Number of accumulation units outstanding at end of period 48,373 25,257 1,565
AETNA GROWTH AND INCOME VP
Value at beginning of period $25.193 $22.226 $19.673(1)
Value at end of period $29.287 $25.193 $22.226
Number of accumulation units outstanding at end of period 4,958,303 5,670,691 6,093,102
AETNA HIGH YIELD VP
Value at beginning of period $9.212 $9.135(3)
Value at end of period $9.739 $9.212
Number of accumulation units outstanding at end of period 2,025 2,225
AETNA INDEX PLUS LARGE CAP VP
Value at beginning of period $18.802 $14.452 $12.748(1)
Value at end of period $23.103 $18.802 $14.452
Number of accumulation units outstanding at end of period 80,552 48,459 13,748
AETNA INDEX PLUS SMALL CAP VP
Value at beginning of period $8.815 $6.682(4)
Value at end of period $9.645 $8.815
Number of accumulation units outstanding at end of period 722 748
AETNA LEGACY VP
Value at beginning of period $14.327 $13.518 $12.496(1)
Value at end of period $15.206 $14.327 $13.518
Number of accumulation units outstanding at end of period 22,033 10,684 16,060
AETNA MONEY MARKET VP
Value at beginning of period $12.447 $11.951 $11.674(1)
Value at end of period $12.917 $12.447 $11.951
Number of accumulation units outstanding at end of period 515,621 553,915 591,901
AETNA SMALL COMPANY VP
Value at beginning of period $13.633 $13.654 $13.092(2)
Value at end of period $17.617 $13.633 $13.654
Number of accumulation units outstanding at end of period 7,350 4,297 1,779
AETNA VALUE OPPORTUNITY VP
Value at beginning of period $16.030 $12.899(5)
Value at end of period $18.930 $16.030
Number of accumulation units outstanding at end of period 10,011 5,261
AIM V.I. CAPITAL APPRECIATION FUND
Value at beginning of period $10.649(6)
Value at end of period $13.759
Number of accumulation units outstanding at end of period 2,465
AIM V.I. GROWTH AND INCOME FUND
Value at beginning of period $9.763(7)
Value at end of period $11.721
Number of accumulation units outstanding at end of period 4,408
AIM V.I. VALUE FUND
Value at beginning of period $9.778(8)
Value at end of period $11.511
Number of accumulation units outstanding at end of period 27,063
</TABLE>
106
<PAGE>
Condensed Financial Information (continued)
<TABLE>
<CAPTION>
1999 1998 1997
-------- ------- --------
<S> <C> <C> <C>
CALVERT SOCIAL BALANCED PORTFOLIO
Value at beginning of period $20.485 $17.840 $16.178(1)
Value at end of period $22.705 $20.485 $17.840
Number of accumulation units outstanding at end of period 1,312 3,612 3,576
FIDELITY VIP EQUITY-INCOME PORTFOLIO
Value at beginning of period $17.459 $15.837 $14.065(1)
Value at end of period $18.334 $17.459 $15.837
Number of accumulation units outstanding at end of period 31,846 44,812 49,884
FIDELITY VIP GROWTH PORTFOLIO
Value at beginning of period $19.155 $13.904 $12.498(1)
Value at end of period $25.999 $19.155 $13.904
Number of accumulation units outstanding at end of period 60,970 41,575 31,477
FIDELITY VIP OVERSEAS PORTFOLIO
Value at beginning of period $13.662 $12.269 $12.518(1)
Value at end of period $19.243 $13.662 $12.269
Number of accumulation units outstanding at end of period 1,456 1,816 1,206
FIDELITY VIP II CONTRAFUND[Reg TM] PORTFOLIO
Value at beginning of period $19.601 $15.270 $13.443(1)
Value at end of period $24.053 $19.601 $15.270
Number of accumulation units outstanding at end of period 35,985 31,455 29,365
JANUS ASPEN AGGRESSIVE GROWTH PORTFOLIO
Value at beginning of period $20.951 $15.801 $14.156(1)
Value at end of period $46.640 $20.951 $15.801
Number of accumulation units outstanding at end of period 63,769 32,182 26,177
JANUS ASPEN BALANCED PORTFOLIO
Value at beginning of period $19.908 $15.012 $13.573(1)
Value at end of period $24.922 $19.908 $15.012
Number of accumulation units outstanding at end of period 43,805 23,035 8,663
JANUS ASPEN FLEXIBLE INCOME PORTFOLIO
Value at beginning of period $15.487 $14.373 $13.448(1)
Value at end of period $15.540 $15.487 $14.373
Number of accumulation units outstanding at end of period 6,227 9,337 323
JANUS ASPEN GROWTH PORTFOLIO
Value at beginning of period $20.651 $15.414 $13.985(1)
Value at end of period $29.366 $20.651 $15.414
Number of accumulation units outstanding at end of period 28,974 7,088 6,389
JANUS ASPEN WORLDWIDE GROWTH PORTFOLIO
Value at beginning of period $21.288 $16.720 $15.828(1)
Value at end of period $34.574 $21.288 $16.720
Number of accumulation units outstanding at end of period 84,796 67,482 63,534
LEXINGTON NATURAL RESOURCES TRUST
Value at beginning of period $12.336 $15.541 $15.221(1)
Value at end of period $13.900 $12.336 $15.541
Number of accumulation units outstanding at end of period 900 745 8,053
OPPENHEIMER GLOBAL SECURITIES FUND/VA
Value at beginning of period $10.018 $8.115(4)
Value at end of period $15.681 $10.018
Number of accumulation units outstanding at end of period 6,425 2,465
PPI MFS CAPITAL OPPORTUNITIES PORTFOLIO
Value at beginning of period $24.145 $19.291 $19.016(9)
Value at end of period $35.480 $24.145 $19.291
Number of accumulation units outstanding at end of period 8,425 5,460 7,188
PPI MFS EMERGING EQUITIES PORTFOLIO
Value at beginning of period $19.114 $14.927 $15.114(9)
Value at end of period $28.481 $19.114 $14.927
Number of accumulation units outstanding at end of period 14,236 40,140 56,819
PPI MFS RESEARCH GROWTH PORTFOLIO
Value at beginning of period $16.758 $13.795 $14.067(9)
Value at end of period $20.527 $16.758 $13.795
Number of accumulation units outstanding at end of period 64,138 56,680 55,233
PPI SCUDDER INTERNATIONAL GROWTH PORTFOLIO
Value at beginning of period $19.978 $16.986 $16.776(9)
Value at end of period $31.255 $19.978 $16.986
Number of accumulation units outstanding at end of period 6,428 3,855 6,970
PPI T. ROWE PRICE GROWTH EQUITY PORTFOLIO
Value at beginning of period $18.146 $14.400 $14.112(9)
Value at end of period $21.922 $18.146 $14.400
Number of accumulation units outstanding at end of period 24,825 29,384 24,650
</TABLE>
- -----------------
(1) Funds were first received in this option during June 1997.
(2) Funds were first received in this option during December 1997.
(3) Funds were first received in this option during December 1998.
(4) Funds were first received in this option during October 1998.
(5) Funds were first received in this option during January 1998.
(6) Funds were first received in this option during July 1999.
(7) Funds were first received in this option during September 1999.
(8) Funds were first received in this option during May 1999.
(9) Funds were first received in this option during November 1997.
107
<PAGE>
Condensed Financial Information
- --------------------------------------------------------------------------------
TABLE XV
FOR DEFERRED COMPENSATION CONTRACTS WITH TOTAL SEPARATE ACCOUNT CHARGES
OF 0.95% EFFECTIVE ON JANUARY 15, 1996
(Selected data for accumulation units outstanding throughout each period)
- --------------------------------------------------------------------------------
The condensed financial information presented below for each of the periods in
the ten-year period ended December 31, 1999 (as applicable), is derived from
the financial statements of the separate account, which have been audited by
KPMG LLP, independent auditors. The financial statements and the independent
auditors' report thereon for the year ended December 31, 1999 are included in
the Statement of Additional Information. The accumulation unit values reflect a
mortality and expense risk charge of 1.25% until January 15, 1996, when the
mortality and expense risk charge was reduced to 0.95% during the accumulation
phase. It will increase to 1.25% during the income phase.
<TABLE>
<CAPTION>
1999 1998 1997 1996
------- ------- -------- --------
<S> <C> <C> <C> <C>
AETNA ASCENT VP
Value at beginning of period $16.028 $15.514 $13.063 $10.673
Value at end of period $18.172 $16.028 $15.514 $13.063
Number of accumulation units
outstanding at end of period 68,230 80,754 65,940 22,888
AETNA BALANCED VP, INC
Value at beginning of period $21.917 $18.922 $15.596 $13.673
Value at end of period $24.687 $21.917 $18.922 $15.596
Number of accumulation units
outstanding at end of period 725,533 768,510 776,268 768,178
AETNA BOND VP
Value at beginning of period $14.264 $13.316 $12.413 $12.098
Value at end of period $14.037 $14.264 $13.316 $12.413
Number of accumulation units
outstanding at end of period 345,815 389,466 328,774 354,731
AETNA CROSSROADS VP
Value at beginning of period $15.255 $14.541 $12.486 $10.612
Value at end of period $16.670 $15.255 $14.541 $12.486
Number of accumulation units
outstanding at end of period 69,848 78,788 71,276 35,151
AETNA GROWTH VP
Value at beginning of period $18.005 $13.202 $12.787(4)
Value at end of period $24.094 $18.005 $13.202
Number of accumulation units
outstanding at end of period 172,922 115,677 6,619
AETNA GROWTH AND
INCOME VP
Value at beginning of period $25.319 $22.325 $17.352 $14.077
Value at end of period $29.475 $25.319 $22.325 $17.352
Number of accumulation units
outstanding at end of period 4,530,330 5,019,611 5,232,193 4,796,196
AETNA HIGH YIELD VP
Value at beginning of period $9.2 31 $9.216(6)
Value at end of period $9.79 8 $9.231
Number of accumulation units
outstanding at end of period 6,160 1,842
AETNA INDEX PLUS
LARGE CAP VP
Value at beginning of period $18.902 $14.500 $10.934 $10.000(7)
Value at end of period $23.294 $18.902 $14.500 $10.934
Number of accumulation units
outstanding at end of period 580,525 386,036 159,318 27,436
AETNA INDEX PLUS MID
CAP VP
Value at beginning of period $10.913 $7.633(8)
Value at end of period $12.530 $10.913
Number of accumulation units
outstanding at end of period 32,617 5,166
AETNA INDEX PLUS SMALL
CAP VP
Value at beginning of period $8.834 $6.425(8)
Value at end of period $9.703 $8.834
Number of accumulation units
outstanding at end of period 14,120 6,054
AETNA INTERNATIONAL VP
Value at beginning of period $9.785 $8.779(8)
Value at end of period $14.682 9.785
Number of accumulation units
outstanding at end of period 5,886 583
<CAPTION>
1995 1994 1993 1992 1991 1990
----------- ---------- ----------- --------- ---------- ----------
<S> <C> <C> <C> <C> <C> <C>
AETNA ASCENT VP
Value at beginning of period $10.000(1)
Value at end of period $10.673
Number of accumulation units
outstanding at end of period 393,053
AETNA BALANCED VP, INC
Value at beginning of period $10.868 $11.057 $10.189 $12.736(2) $10.896 $10.437
Value at end of period $13.673 $10.868 $11.057 $10.189 $12.736 $10.896
Number of accumulation units
outstanding at end of period 38,152,395 23,139,604 11,368,365 11,508 22,898,099 17,078,985
AETNA BOND VP
Value at beginning of period $10.360 $10.905 $10.068 $36.789(3) $31.192 $28.943
Value at end of period $12.098 $10.360 $10.905 $10.068 $36.789 $31.192
Number of accumulation units
outstanding at end of period 21,379,976 11,713,354 4,084,142 3,870 7,844,412 6,984,793
AETNA CROSSROADS VP
Value at beginning of period $10.000(1)
Value at end of period $10.612
Number of accumulation units
outstanding at end of period 294,673
AETNA GROWTH VP
Value at beginning of period
Value at end of period
Number of accumulation units
outstanding at end of period
AETNA GROWTH AND
INCOME VP
Value at beginning of period $10.778 $11.020 $10.454 $97.165(5) $77.845 $76.311
Value at end of period $14.077 $10.778 $11.020 $10.454 $97.165 $77.845
Number of accumulation units
outstanding at end of period 188,964,022 114,733,035 44,166,470 21,250 20,948,226 18,362,906
AETNA HIGH YIELD VP
Value at beginning of period
Value at end of period
Number of accumulation units
outstanding at end of period
AETNA INDEX PLUS
LARGE CAP VP
Value at beginning of period
Value at end of period
Number of accumulation units
outstanding at end of period
AETNA INDEX PLUS MID
CAP VP
Value at beginning of period
Value at end of period
Number of accumulation units
outstanding at end of period
AETNA INDEX PLUS SMALL
CAP VP
Value at beginning of period
Value at end of period
Number of accumulation units
outstanding at end of period
AETNA INTERNATIONAL VP
Value at beginning of period
Value at end of period
Number of accumulation units
outstanding at end of period
</TABLE>
108
<PAGE>
Condensed Financial Information (continued)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
1999 1998 1997 1996 1995
-------- ------- -------- -------- -----------
<S> <C> <C> <C> <C> <C>
AETNA LEGACY VP
Value at beginning of period $14.375 $13.571 $11.965 $10.580 $10.000(1)
Value at end of period $15.264 $14.375 $13.571 $11.965 $10.580
Number of accumulation units
outstanding at end of period 53,313 63,385 38,899 13,861 143,637
AETNA MONEY MARKET VP
Value at beginning of period $12.558 $12.022 $11.506 $11.026 $10.528
Value at end of period $13.083 $12.558 $12.022 $11.506 $11.026
Number of accumulation units
outstanding at end of period 345,617 230,562 262,519 228,698 12,999,680
AETNA REAL ESTATE
SECURITIES VP
Value at beginning of period $8.89 1 $8.634(8)
Value at end of period $8.444 $8.891
Number of accumulation units
outstanding at end of period 13,312 673
AETNA SMALL COMPANY
VP
Value at beginning of period $13.704 $13.684 $13.119(4)
Value at end of period $17.778 $13.704 $13.684
Number of accumulation units
outstanding at end of period 58,528 61,244 1,098
AETNA VALUE
OPPORTUNITY VP
Value at beginning of period $16.113 $13.290 $13.037(10)
Value at end of period $19.103 $16.113 $13.290
Number of accumulation units
outstanding at end of period 52,283 54,627 3,417
CALVERT SOCIAL
BALANCED PORTFOLIO
Value at beginning of period $20.668 $17.946 $15.088 $13.527 $10.554
Value at end of period $22.998 $20.668 $17.946 $15.088 $13.527
Number of accumulation units
outstanding at end of period 68,703 71,154 66,428 57,557 966,098
FIDELITY VIP EQUITY-
INCOME PORTFOLIO
Value at beginning of period $17.615 $15.931 $12.554 $11.092 $10.000(1)
Value at end of period $18.570 $17.615 $15.931 $12.554 $11.092
Number of accumulation units
outstanding at end of period 222,000 239,214 196,921 116,432 1,660,304
FIDELITY VIP GROWTH
PORTFOLIO
Value at beginning of period $19.326 $13.987 $11.435 $10.066 $10.000(1)
Value at end of period $26.334 $19.326 $13.987 $11.435 $10.066
Number of accumulation units
outstanding at end of period 476,086 292,985 181,487 112,748 1,833,794
FIDELITY VIP OVERSEAS
PORTFOLIO
Value at beginning of period $13.784 $12.342 $11.169 $9.961 $10.000(1)
Value at end of period $19.492 $13.784 $12.342 $11.169 $9.961
Number of accumulation units
outstanding at end of period 24,274 26,108 22,047 10,848 196,090
FIDELITY VIP II
CONTRAFUND[Reg TM]
PORTFOLIO
Value at beginning of period $19.776 $15.360 $12.491 $10.397 $10.000(1)
Value at end of period $24.363 $19.776 $15.360 $12.491 $10.397
Number of accumulation units
outstanding at end of period 222,596 209,707 171,832 92,021 2,116,732
JANUS ASPEN AGGRESSIVE
GROWTH PORTFOLIO
Value at beginning of period $21.139 $15.895 $14.243 $13.322 $10.581
Value at end of period $47.242 $21.139 $15.895 $14.243 $13.322
Number of accumulation units
outstanding at end of period 582,335 283,821 253,316 226,504 4,887,060
JANUS ASPEN BALANCED
PORTFOLIO
Value at beginning of period $20.086 $15.100 $12.485 $10.850 $10.000(1)
Value at end of period $25.243 $20.086 $15.100 $12.485 $10.850
Number of accumulation units
outstanding at end of period 248,076 105,755 45,503 29,442 93,304
JANUS ASPEN FLEXIBLE
INCOME PORTFOLIO
Value at beginning of period $15.626 $14.458 $13.060 $12.077 $9.873
Value at end of period $15.741 $15.626 $14.458 $13.060 $12.077
Number of accumulation units
outstanding at end of period 53,088 57,101 13,925 6,607 315,361
<CAPTION>
1994 1993 1992 1991 1990
--------- ---------- -------- ------- ---------
<S> <C> <C> <C> <C> <C>
AETNA LEGACY VP
Value at beginning of period
Value at end of period
Number of accumulation units
outstanding at end of period
AETNA MONEY MARKET VP
Value at beginning of period $10.241 $10.048 $33.812(9) $32.138 $30.012
Value at end of period $10.528 $10.241 $10.048 $33.812 $32.138
Number of accumulation units
outstanding at end of period 7,673,528 2,766,044 825 8,430,082 10,220,110
AETNA REAL ESTATE
SECURITIES VP
Value at beginning of period
Value at end of period
Number of accumulation units
outstanding at end of period
AETNA SMALL COMPANY
VP
Value at beginning of period
Value at end of period
Number of accumulation units
outstanding at end of period
AETNA VALUE
OPPORTUNITY VP
Value at beginning of period
Value at end of period
Number of accumulation units
outstanding at end of period
CALVERT SOCIAL
BALANCED PORTFOLIO
Value at beginning of period $11.036 $10.278 $10.000(11)
Value at end of period $10.554 $11.036 $10.278
Number of accumulation units
outstanding at end of period 521,141 144,168 2,556
FIDELITY VIP EQUITY-
INCOME PORTFOLIO
Value at beginning of period
Value at end of period
Number of accumulation units
outstanding at end of period
FIDELITY VIP GROWTH
PORTFOLIO
Value at beginning of period
Value at end of period
Number of accumulation units
outstanding at end of period
FIDELITY VIP OVERSEAS
PORTFOLIO
Value at beginning of period
Value at end of period
Number of accumulation units
outstanding at end of period
FIDELITY VIP II
CONTRAFUND[Reg TM]
PORTFOLIO
Value at beginning of period
Value at end of period
Number of accumulation units
outstanding at end of period
JANUS ASPEN AGGRESSIVE
GROWTH PORTFOLIO
Value at beginning of period $10.000(12)
Value at end of period $10.581
Number of accumulation units
outstanding at end of period 753,862
JANUS ASPEN BALANCED
PORTFOLIO
Value at beginning of period
Value at end of period
Number of accumulation units
outstanding at end of period
JANUS ASPEN FLEXIBLE
INCOME PORTFOLIO
Value at beginning of period $10.000(12)
Value at end of period $9.873
Number of accumulation units
outstanding at end of period 28,543
</TABLE>
109
<PAGE>
Condensed Financial Information (continued)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
1999 1998 1997 1996
------- ------- ------- --------
<S> <C> <C> <C> <C>
JANUS ASPEN GROWTH
PORTFOLIO
Value at beginning of period $20.836 $15.505 $12.753 $10.870
Value at end of period $29.744 $20.836 $15.505 $12.753
Number of accumulation units
outstanding at end of period 260,307 128,844 83,855 51,761
JANUS ASPEN WORLDWIDE
GROWTH PORTFOLIO
Value at beginning of period $21.478 $16.819 $13.900 $10.877
Value at end of period $35.020 $21.478 $16.819 $13.900
Number of accumulation units
outstanding at end of period 771,009 655,881 511,940 212,494
LEXINGTON NATURAL
RESOURCES TRUST
Value at beginning of period $12.446 $15.633 $14.729 $11.720
Value at end of period $14.079 $12.446 $15.633 $14.729
Number of accumulation units
outstanding at end of period 26,550 37,897 73,258 42,174
OPPENHEIMER GLOBAL
SECURITIES FUND/VA
Value at beginning of period $10.039 $8.907(8)
Value at end of period $15.775 $10.039
Number of accumulation units
outstanding at end of period 14,291 774
OPPENHEIMER STRATEGIC
BOND FUND/VA
Value at beginning of period $9.915 $9.660(8)
Value at end of period $10.108 $9.915
Number of accumulation units
outstanding at end of period 1,294 176
PPI MFS CAPITAL
OPPORTUNITIES
PORTFOLIO
Value at beginning of period $24.361 $19.405 $19.123(13)
Value at end of period $35.938 $24.361 $19.405
Number of accumulation units
outstanding at end of period 184,604 182,557 192,553
PPI MFS EMERGING
EQUITIES PORTFOLIO
Value at beginning of period $19.285 $15.015 $15.199(13)
Value at end of period $28.849 $19.285 $15.015
Number of accumulation units
outstanding at end of period 587,576 595,462 573,528
PPI MFS RESEARCH
GROWTH PORTFOLIO
Value at beginning of period $16.907 $13.877 $14.147(13)
Value at end of period $20.792 $16.907 $13.877
Number of accumulation units
outstanding at end of period 333,629 378,798 418,965
PPI SCUDDER
INTERNATIONAL
GROWTH PORTFOLIO
Value at beginning of period $20.157 $17.087 $16.871(13)
Value at end of period $31.658 $20.157 $17.087
Number of accumulation units
outstanding at end of period 262,481 273,684 295,952
PPI T. ROWE PRICE
GROWTH EQUITY
PORTFOLIO
Value at beginning of period $18.309 $14.485 $14.192(13)
Value at end of period $22.205 $18.309 $14.485
Number of accumulation units
outstanding at end of period 297,723 277,044 212,654
<CAPTION>
1995 1994 1993 1992
----------- -------- ---------- --------
<S> <C> <C> <C> <C>
JANUS ASPEN GROWTH
PORTFOLIO
Value at beginning of period $10.000(1)
Value at end of period $10.870
Number of accumulation units
outstanding at end of period 259,196
JANUS ASPEN WORLDWIDE
GROWTH PORTFOLIO
Value at beginning of period $10.000(1)
Value at end of period $10.877
Number of accumulation units
outstanding at end of period 1,036,040
LEXINGTON NATURAL
RESOURCES TRUST
Value at beginning of period $10.154 $10.877 $ 9.832 $10.000(11)
Value at end of period $11.720 $10.154 $10.877 $9.832
Number of accumulation units
outstanding at end of period 711,892 703,676 135,614 561
OPPENHEIMER GLOBAL
SECURITIES FUND/VA
Value at beginning of period
Value at end of period
Number of accumulation units
outstanding at end of period
OPPENHEIMER STRATEGIC
BOND FUND/VA
Value at beginning of period
Value at end of period
Number of accumulation units
outstanding at end of period
PPI MFS CAPITAL
OPPORTUNITIES
PORTFOLIO
Value at beginning of period
Value at end of period
Number of accumulation units
outstanding at end of period
PPI MFS EMERGING
EQUITIES PORTFOLIO
Value at beginning of period
Value at end of period
Number of accumulation units
outstanding at end of period
PPI MFS RESEARCH
GROWTH PORTFOLIO
Value at beginning of period
Value at end of period
Number of accumulation units
outstanding at end of period
PPI SCUDDER
INTERNATIONAL
GROWTH PORTFOLIO
Value at beginning of period
Value at end of period
Number of accumulation units
outstanding at end of period
PPI T. ROWE PRICE
GROWTH EQUITY
PORTFOLIO
Value at beginning of period
Value at end of period
Number of accumulation units
outstanding at end of period
</TABLE>
- -----------------
(1) The initial accumulation unit value was established at $10.000 during
August 1995, when the fund became available under the contract.
(2) The accumulation unit value was converted to $10.000 on August 21, 1992
upon the commencement of a new administrative system. Immediately prior to
that date, the accumulation unit value of the fund was $13.118. On the
date of conversion, additional units were issued so that account values
were not changed as a result of the conversion.
(3) The accumulation unit value was converted to $10.000 on August 21, 1992
upon the commencement of a new administrative system. Immediately prior to
that date, the accumulation unit value of the fund was $38.521. On the
date of conversion, additional units were issued so that account values
were not changed as a result of the conversion.
110
<PAGE>
Condensed Financial Information (continued)
- --------------------------------------------------------------------------------
(4) Funds were first received in this option during December 1997.
(5) The accumulation unit value was converted to $10.000 on August 21, 1992
upon the commencement of a new administrative system. Immediately prior to
that date, the accumulation unit value of the fund was $97.817. On the
date of conversion, additional units were issued so that account values
were not changed as a result of the conversion.
(6) Funds were first received in this option during November 1998.
(7) The initial accumulation unit value was established during August 1996
when the portfolio became available under the contract, when funds were
first received in this option or when the applicable daily asset charge
was first utilized. Funds were first received in this option during
October 1998.
(8) Funds were first received in this option during October 1998.
(9) The accumulation unit value was converted to $10.000 on August 21, 1992
upon the commencement of a new administrative system. Immediately prior to
that date, the accumulation unit value of the fund was $34.397. On the
date of conversion, additional units were issued so that account values
were not changed as a result of the conversion.
(10) Funds were first received in this option during August 1997.
(11) The initial accumulation unit value was established at $10.000 on August
21, 1992, the date on which the fund/portfolio became available under
contract.
(12) The initial accumulation unit value was established at $10.000 during
October 1994, when the funds were first received in this option.
(13) Funds were first received in this option during November 1997.
111
<PAGE>
Condensed Financial Information
- --------------------------------------------------------------------------------
TABLE XVI
FOR DEFERRED COMPENSATION CONTRACTS WITH TOTAL SEPARATE ACCOUNT CHARGES
OF 0.95% EFFECTIVE ON MAY 25, 1996
(Selected data for accumulation units outstanding throughout each period)
- --------------------------------------------------------------------------------
The condensed financial information presented below for each of the periods in
the ten-year period ended December 31, 1999 (as applicable), is derived from
the financial statements of the separate account, which have been audited by
KPMG LLP, independent auditors. The financial statements and the independent
auditors' report thereon for the year ended December 31, 1999 are included in
the Statement of Additional Information. The accumulation unit values reflect a
mortality and expense risk charge of 1.25% until May 25, 1996, when the
mortality and expense risk charge was reduced to 0.95% during the accumulation
phase. It will increase to 1.25% during the income phase.
<TABLE>
<CAPTION>
1999 1998 1997 1996
-------- ------- --------- ----------
<S> <C> <C> <C> <C>
AETNA ASCENT VP
Value at beginning of period $16.011 $15.497 $13.049 $10.673
Value at end of period $18.135 $16.011 $15.497 $13.049
Number of accumulation units
outstanding at end of period 11,396 29,149 178,233 35,180
AETNA BALANCED VP, INC
Value at beginning of period $21.893 $18.901 $15.579 $13.673
Value at end of period $24.637 $21.893 $18.901 $15.579
Number of accumulation units
outstanding at end of period 127,612 266,636 1,511,041 1,528,051
AETNA BOND VP
Value at beginning of period $14.248 $13.301 $12.399 $12.098
Value at end of period $14.009 $14.248 $13.301 $12.399
Number of accumulation units
outstanding at end of period 128,235 200,650 463,068 493,485
AETNA CROSSROADS VP
Value at beginning of period $15.239 $14.526 $12.473 $10.612
Value at end of period $16.637 $15.239 $14.526 $12.473
Number of accumulation units
outstanding at end of period 10,401 30,057 99,660 28,829
AETNA GROWTH VP
Value at beginning of period $18.005 $13.202 $12.975(4)
Value at end of period $24.071 $18.005 $13.202
Number of accumulation units
outstanding at end of period 26,330 81,693 4,360
AETNA GROWTH AND
INCOME VP
Value at beginning of period $25.291 $22.301 $17.333 $14.077
Value at end of period $29.416 $25.291 $22.301 $17.333
Number of accumulation units
outstanding at end of period 1,028,949 2,491,029 7,667,724 7,250,286
AETNA HIGH YIELD VP
Value at beginning of period $9.231 $8.889(6)
Value at end of period $9.789 $9.231
Number of accumulation units
outstanding at end of period 5 17
AETNA INDEX PLUS LARGE
CAP VP
Value at beginning of period $18.902 $14.500 $10.934 $10.000(7)
Value at end of period $23.273 $18.902 $14.500 $10.934
Number of accumulation units
outstanding at end of period 83,941 145,736 190,348 28,473
AETNA INDEX PLUS MID
CAP VP
Value at beginning of period $10.913 $9.927(8)
Value at end of period $12.519 $10.913
Number of accumulation units
outstanding at end of period 5,399 9,117
AETNA INDEX PLUS SMALL
CAP VP
Value at beginning of period $8.834 $9.997(8)
Value at end of period $9.694 $8.834
Number of accumulation units
outstanding at end of period 5,249 12,800
AETNA INTERNATIONAL VP
Value at beginning of period $9.785 $10.183(8)
Value at end of period $14.668 $9.785
Number of accumulation units
outstanding at end of period 1,203 7,767
<CAPTION>
1995 1994 1993 1992 1991 1990
---------- ---------- ---------- ------ ---------- ----------
<S> <C> <C> <C> <C> <C> <C>
AETNA ASCENT VP
Value at beginning of period $10.000(1)
Value at end of period $10.673
Number of accumulation units
outstanding at end of period 393,053
AETNA BALANCED VP, INC
Value at beginning of period $10.868 $11.057 $10.189 $12.736(2) $10.896 $10.437
Value at end of period $13.673 $10.868 $11.057 $10.189 $12.736 $10.896
Number of accumulation units
outstanding at end of period 38,152,395 23,139,604 11,368,365 11,508 22,898,099 17,078,985
AETNA BOND VP
Value at beginning of period $10.360 $10.905 $10.068 $36.789(3) $31.192 $28.943
Value at end of period $12.098 $10.360 $10.905 $10.068 $36.789 $31.192
Number of accumulation units
outstanding at end of period 21,379,976 11,713,354 4,084,142 3,870 7,844,412 6,984,793
AETNA CROSSROADS VP
Value at beginning of period $10.000(1)
Value at end of period $10.612
Number of accumulation units
outstanding at end of period 294,673
AETNA GROWTH VP
Value at beginning of period
Value at end of period
Number of accumulation units
outstanding at end of period
AETNA GROWTH AND
INCOME VP
Value at beginning of period $10.778 $11.020 $10.454 $97.165(5) $77.845 $76.311
Value at end of period $14.077 $10.778 $11.020 $10.454 $97.165 $77.845
Number of accumulation units
outstanding at end of period 188,964,022 114,733,035 44,166,470 21,250 20,948,226 18,362,906
AETNA HIGH YIELD VP
Value at beginning of period
Value at end of period
Number of accumulation units
outstanding at end of period
AETNA INDEX PLUS LARGE
CAP VP
Value at beginning of period
Value at end of period
Number of accumulation units
outstanding at end of period
AETNA INDEX PLUS MID
CAP VP
Value at beginning of period
Value at end of period
Number of accumulation units
outstanding at end of period
AETNA INDEX PLUS SMALL
CAP VP
Value at beginning of period
Value at end of period
Number of accumulation units
outstanding at end of period
AETNA INTERNATIONAL VP
Value at beginning of period
Value at end of period
Number of accumulation units
outstanding at end of period
</TABLE>
112
<PAGE>
Condensed Financial Information (continued)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
1999 1998 1997 1996
------- -------- ------- --------
<S> <C> <C> <C> <C>
AETNA LEGACY VP
Value at beginning of period $14.361 $13.557 $11.953 $10.580
Value at end of period $15.234 $14.361 $13.557 $11.953
Number of accumulation units
outstanding at end of period 3,379 17,756 58,121 15,755
AETNA MONEY MARKET VP
Value at beginning of period $12.545 $12.009 $11.494 $11.026
Value at end of period $13.057 $12.545 $12.009 $11.494
Number of accumulation units
outstanding at end of period $117,934 132,737 328,674 351,832
AETNA REAL ESTATE
SECURITIES VP
Value at beginning of period $8.891 $10.127(8)
Value at end of period $8.436 $8.891
Number of accumulation units
outstanding at end of period 1,264 11,639
AETNA SMALL COMPANY
VP
Value at beginning of period $13.704 $13.684 $13.248(4)
Value at end of period $17.762 $13.704 $13.684
Number of accumulation units
outstanding at end of period 12,642 52,936 12,603
AETNA VALUE
OPPORTUNITY VP
Value at beginning of period $16.113 $13.290 $13.093(4)
Value at end of period $19.085 $16.113 $13.290
Number of accumulation units
outstanding at end of period 3,855 19,971 8,131
AIM V.I. GROWTH FUND
Value at beginning of period $10.229(10)
Value at end of period $12.098
Number of accumulation units
outstanding at end of period 110
AIM V.I. GROWTH AND
INCOME FUND
Value at beginning of period $9.645(11)
Value at end of period $11.710
Number of accumulation units
outstanding at end of period 328
AIM V.I. VALUE FUND
Value at beginning of period $9.915(12)
Value at end of period $11.495
Number of accumulation units
outstanding at end of period 181
CALVERT SOCIAL
BALANCED PORTFOLIO
Value at beginning of period $20.646 $17.926 $15.071 $13.527
Value at end of period $22.951 $20.646 $17.926 $15.071
Number of accumulation units
outstanding at end of period 16,438 21,808 40,783 35,511
FIDELITY VIP EQUITY-
INCOME PORTFOLIO
Value at beginning of period $17.596 $15.914 $12.541 $11.092
Value at end of period $18.533 $17.596 $15.914 $12.541
Number of accumulation units
outstanding at end of period 30,245 74,067 121,281 82,568
FIDELITY VIP GROWTH
PORTFOLIO
Value at beginning of period $19.305 $13.972 $11.423 $10.066
Value at end of period $26.281 $19.305 $13.972 $11.423
Number of accumulation units
outstanding at end of period 77,945 100,561 176,877 135,704
FIDELITY VIP OVERSEAS
PORTFOLIO
Value at beginning of period $13.769 $12.328 $11.157 $9.961
Value at end of period $19.452 $13.769 $12.328 $11.157
Number of accumulation units
outstanding at end of period 7,531 14,165 40,516 29,108
FIDELITY VIP II
CONTRAFUND[Reg TM]
PORTFOLIO
Value at beginning of period $19.755 $15.343 $12.477 $10.397
Value at end of period $24.314 $19.755 $15.343 $12.477
Number of accumulation units
outstanding at end of period 79,042 176,553 320,226 175,463
<CAPTION>
1995 1994 1993 1992 1991 1990
----------- ---------- --------- --------- --------- ---------
<S> <C> <C> <C> <C> <C> <C>
AETNA LEGACY VP
Value at beginning of period $10.000(1)
Value at end of period $10.580
Number of accumulation units
outstanding at end of period 143,637
AETNA MONEY MARKET VP
Value at beginning of period $10.528 $10.241 $10.048 $33.812(9) $32.138 $30.012
Value at end of period $11.026 $10.528 $10.241 $10.048 $33.812 $32.138
Number of accumulation units
outstanding at end of period 12,999,680 7,673,528 2,766,044 825 8,430,082 10,220,110
AETNA REAL ESTATE
SECURITIES VP
Value at beginning of period
Value at end of period
Number of accumulation units
outstanding at end of period
AETNA SMALL COMPANY
VP
Value at beginning of period
Value at end of period
Number of accumulation units
outstanding at end of period
AETNA VALUE
OPPORTUNITY VP
Value at beginning of period
Value at end of period
Number of accumulation units
outstanding at end of period
AIM V.I. GROWTH FUND
Value at beginning of period
Value at end of period
Number of accumulation units
outstanding at end of period
AIM V.I. GROWTH AND
INCOME FUND
Value at beginning of period
Value at end of period
Number of accumulation units
outstanding at end of period
AIM V.I. VALUE FUND
Value at beginning of period
Value at end of period
Number of accumulation units
outstanding at end of period
CALVERT SOCIAL
BALANCED PORTFOLIO
Value at beginning of period $10.554 $11.036 $10.278 $10.000(13)
Value at end of period $13.527 $10.554 $11.036 $10.278
Number of accumulation units
outstanding at end of period 966,098 521,141 144,168 2,556
FIDELITY VIP EQUITY-
INCOME PORTFOLIO
Value at beginning of period $10.000(1)
Value at end of period $11.092
Number of accumulation units
outstanding at end of period 1,660,304
FIDELITY VIP GROWTH
PORTFOLIO
Value at beginning of period $10.000(1)
Value at end of period $10.066
Number of accumulation units
outstanding at end of period 1,833,794
FIDELITY VIP OVERSEAS
PORTFOLIO
Value at beginning of period $10.000(1)
Value at end of period $9.961
Number of accumulation units
outstanding at end of period 196,090
FIDELITY VIP II
CONTRAFUND[Reg TM]
PORTFOLIO
Value at beginning of period $10.000(1)
Value at end of period $10.397
Number of accumulation units
outstanding at end of period 2,116,732
</TABLE>
113
<PAGE>
Condensed Financial Information (continued)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
1999 1998 1997 1996
-------- ------- ------- -------
<S> <C> <C> <C> <C>
JANUS ASPEN AGGRESSIVE
GROWTH PORTFOLIO
Value at beginning of period $21.116 $15.878 $14.227 $13.322
Value at end of period $47.147 $21.116 $15.878 $14.227
Number of accumulation units
outstanding at end of period 98,304 120,002 211,783 171,747
JANUS ASPEN BALANCED
PORTFOLIO
Value at beginning of period $20.064 $15.084 $12.472 $10.850
Value at end of period $25.192 $20.064 $15.084 $12.472
Number of accumulation units
outstanding at end of period 54,960 45,435 58,999 29,198
JANUS ASPEN FLEXIBLE
INCOME PORTFOLIO
Value at beginning of period $15.609 $14.442 $13.046 $12.077
Value at end of period $15.709 $15.609 $14.442 $13.046
Number of accumulation units
outstanding at end of period 5,620 10,857 11,145 9,054
JANUS ASPEN GROWTH
PORTFOLIO
Value at beginning of period $20.813 $15.489 $12.739 $10.870
Value at end of period $29.684 $20.813 $15.489 $12.739
Number of accumulation units
outstanding at end of period 52,381 47,157 86,733 67,001
JANUS ASPEN WORLDWIDE
GROWTH PORTFOLIO
Value at beginning of period $21.455 $16.800 $13.885 $10.877
Value at end of period $34.949 $21.455 $16.800 $13.885
Number of accumulation units
outstanding at end of period 109,644 236,904 586,164 241,823
LEXINGTON NATURAL
RESOURCES TRUST
Value at beginning of period $12.433 $15.616 $14.713 $11.720
Value at end of period $14.051 $12.433 $15.616 $14.713
Number of accumulation units
outstanding at end of period 5,186 16,414 72,475 43,665
OPPENHEIMER GLOBAL
SECURITIES FUND/VA
Value at beginning of period $10.039 $10.080(8)
Value at end of period $15.760 $10.039
Number of accumulation units
outstanding at end of period 595 3,153
OPPENHEIMER STRATEGIC
BOND FUND/VA
Value at beginning of period $9.915 $10.056(15)
Value at end of period $10.099 $9.915
Number of accumulation units
outstanding at end of period 597 1,158
PPI MFS CAPITAL
OPPORTUNITIES
PORTFOLIO
Value at beginning of period $24.335 $19.384 $19.102 (16)
Value at end of period $35.866 $24.335 $19.384
Number of accumulation units
outstanding at end of period 20,453 48,711 84,592
PPI MFS EMERGING
EQUITIES PORTFOLIO
Value at beginning of period $19.264 $14.999 $15.183 (16)
Value at end of period $28.791 $19.264 $14.999
Number of accumulation units
outstanding at end of period 67,372 289,625 586,517
PPI MFS RESEARCH
GROWTH PORTFOLIO
Value at beginning of period $16.889 $13.862 $14.131 (16)
Value at end of period $20.750 $16.889 $13.862
Number of accumulation units
outstanding at end of period 50,206 158,866 317,033
PPI SCUDDER
INTERNATIONAL GROWTH
PORTFOLIO
Value at beginning of period $20.135 $17.068 $16.853 (16)
Value at end of period $31.595 $20.135 $17.068
Number of accumulation units
outstanding at end of period 29,731 81,257 273,402
<CAPTION>
1995 1994 1993 1992
--------- ---------- ---------- ---------
<S> <C> <C> <C> <C>
JANUS ASPEN AGGRESSIVE
GROWTH PORTFOLIO
Value at beginning of period $10.581 $10.000(14)
Value at end of period $13.322 $10.581
Number of accumulation units
outstanding at end of period 4,887,060 753,862
JANUS ASPEN BALANCED
PORTFOLIO
Value at beginning of period $10.000(1)
Value at end of period $10.850
Number of accumulation units
outstanding at end of period 93,304
JANUS ASPEN FLEXIBLE
INCOME PORTFOLIO
Value at beginning of period $9.873 $10.000(14)
Value at end of period $12.077 $9.873
Number of accumulation units
outstanding at end of period 315,361 28,543
JANUS ASPEN GROWTH
PORTFOLIO
Value at beginning of period $10.000(1)
Value at end of period $10.870
Number of accumulation units
outstanding at end of period 259,196
JANUS ASPEN WORLDWIDE
GROWTH PORTFOLIO
Value at beginning of period $10.000(1)
Value at end of period $10.877
Number of accumulation units
outstanding at end of period 1,036,040
LEXINGTON NATURAL
RESOURCES TRUST
Value at beginning of period $10.154 $10.877 $9.832 $10.000(13)
Value at end of period $11.720 $10.154 $10.877 $9.832
Number of accumulation units
outstanding at end of period 711,892 703,676 135,614 561
OPPENHEIMER GLOBAL
SECURITIES FUND/VA
Value at beginning of period
Value at end of period
Number of accumulation units
outstanding at end of period
OPPENHEIMER STRATEGIC
BOND FUND/VA
Value at beginning of period
Value at end of period
Number of accumulation units
outstanding at end of period
PPI MFS CAPITAL
OPPORTUNITIES
PORTFOLIO
Value at beginning of period
Value at end of period
Number of accumulation units
outstanding at end of period
PPI MFS EMERGING
EQUITIES PORTFOLIO
Value at beginning of period
Value at end of period
Number of accumulation units
outstanding at end of period
PPI MFS RESEARCH
GROWTH PORTFOLIO
Value at beginning of period
Value at end of period
Number of accumulation units
outstanding at end of period
PPI SCUDDER
INTERNATIONAL GROWTH
PORTFOLIO
Value at beginning of period
Value at end of period
Number of accumulation units
outstanding at end of period
</TABLE>
114
<PAGE>
Condensed Financial Information (continued)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
1999 1998 1997 1996 1995 1994 1993 1992 1991 1990
------- -------- --------- ---- ---- ---- ---- ---- ---- ----
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
PPI T. ROWE PRICE
GROWTH EQUITY
PORTFOLIO
Value at beginning of period $18.289 $14.470 $14.176(16)
Value at end of period $22.160 $18.289 $14.470
Number of accumulation units
outstanding at end of period 31,427 84,842 227,469
</TABLE>
- -----------------
(1) The initial accumulation unit value was established at $10.000 during
August 1995, when the fund became available under the contract.
(2) The accumulation unit value was converted to $10.000 on August 21, 1992
upon the commencement of a new administrative system. Immediately prior to
that date, the accumulation unit value of the fund was $13.118. On the
date of conversion, additional units were issued so that account values
were not changed as a result of the conversion.
(3) The accumulation unit value was converted to $10.000 on August 21, 1992
upon the commencement of a new administrative system. Immediately prior to
that date, the accumulation unit value of the fund was $38.521. On the
date of conversion, additional units were issued so that account values
were not changed as a result of the conversion.
(4) Funds were first received in this option during December 1997.
(5) The accumulation unit value was converted to $10.000 on August 21, 1992
upon the commencement of a new administrative system. Immediately prior to
that date, the accumulation unit value of the fund was $97.817. On the
date of conversion, additional units were issued so that account values
were not changed as a result of the conversion.
(6) Funds were first received in this option during October 1998.
(7) The initial accumulation unit value was established during August 1996
when the portfolio became available under the contract, when funds were
first received in this option or when the applicable daily asset charge
was first utilized.
(8) Funds were first received in this option during May 1998.
(9) The accumulation unit value was converted to $10.000 on August 21, 1992
upon the commencement of a new administrative system. Immediately prior to
that date, the accumulation unit value of the fund was $34.397. On the
date of conversion, additional units were issued so that account values
were not changed as a result of the conversion.
(10) Funds were first received in this option during July 1999.
(11) Funds were first received in this option during September 1999.
(12) Funds were first received in this option during June 1999.
(13) The initial accumulation unit value was established at $10.000 August 21,
1992, the date on which the fund/portfolio became available under the
contract.
(14) The initial accumulation unit value was established at $10.000 during
October 1994, when the funds were first received in this option.
(15) Funds were first received in this option during July 1998.
(16) Funds were first received in this option during November 1997.
115
<PAGE>
Condensed Financial Information
- --------------------------------------------------------------------------------
TABLE XVII
FOR DEFERRED COMPENSATION CONTRACTS WITH TOTAL SEPARATE ACCOUNT CHARGES
OF 0.95% EFFECTIVE ON OR AFTER DECEMBER 16, 1996
(Selected data for accumulation units outstanding throughout each period)
================================================================================
The condensed financial information presented below for each of the periods in
the ten-year period ended December 31, 1999 (as applicable), is derived from
the financial statements of the separate account, which have been audited by
KPMG LLP, independent auditors. The financial statements and the independent
auditors' report thereon for the year ended December 31, 1999 are included in
the Statement of Additional Information. The accumulation unit values reflect a
mortality and expense risk charge of 1.25% until December 16, 1996, when the
mortality and expense risk charge was reduced to 0.95% during the accumulation
phase. It will increase to 1.25% during the income phase. The class of
accumulation unit value shown below may also be used for contracts with 0.95%
total separate account charges issued after December 16, 1996; however, the
condensed financial information for periods prior to December 16, 1996 will not
be applicable.
<TABLE>
<CAPTION>
1999 1998 1997 1996 1995
------- ------- ------- ------- -------
<S> <C> <C> <C> <C> <C
AETNA ASCENT VP
Value at beginning of period $15.984 $15.471 $13.027 $10.673 $10.000(1)
Value at end of period $18.105 $15.984 $15.471 $13.027 $10.673
Number of accumulation units
outstanding at end of period 11,315 38,675 86,255 32,497 393,053
AETNA BALANCED VP, INC
Value at beginning of period $21.857 $18.870 $15.553 $13.673 $10.868
Value at end of period $24.596 $21.857 $18.870 $15.553 $13.673
Number of accumulation units
outstanding at end of period 86,058 771,906 1,144,876 270,688 38,152,395
AETNA BOND VP
Value at beginning of period $14.225 $13.279 $12.379 $12.098 $10.360
Value at end of period $13.986 $14.225 $13.279 $12.379 $12.098
Number of accumulation units
outstanding at end of period 114,359 289,651 553,279 159,594 21,379,976
AETNA CROSSROADS VP
Value at beginning of period $15.214 $14.501 $12.452 $10.612 $10.000(1)
Value at end of period $16.609 $15.214 $14.501 $12.452 $10.612
Number of accumulation units
outstanding at end of period 14,627 100,734 101,836 9,415 294,673
AETNA GROWTH VP
Value at beginning of period $18.005 $13.202 $12.912(4)
Value at end of period $24.071 $18.005 $13.202
Number of accumulation units
outstanding at end of period 24,434 59,374 7
AETNA GROWTH AND
INCOME VP
Value at beginning of period $25.249 $22.264 $17.304 $14.077 $10.778
Value at end of period $29.367 $25.249 $22.264 $17.304 $14.077
Number of accumulation units
outstanding at end of period 975,160 4,070,904 8,238,898 3,033,655 188,964,022
AETNA HIGH YIELD VP
Value at beginning of period $9.231 $10.044(6)
Value at end of period $9.789 $9.231
Number of accumulation units
outstanding at end of period 1,594 1,308
AETNA INDEX PLUS LARGE
CAP VP
Value at beginning of period $18.888 $14.489 $10.925 $11.038(7)
Value at end of period $23.256 $18.888 $14.489 $10.925
Number of accumulation units
outstanding at end of period 37,025 136,252 293,223 23,856
AETNA INDEX PLUS MID
CAP VP
Value at beginning of period $10.913 $9.962(8)
Value at end of period $12.519 $10.913
Number of accumulation units
outstanding at end of period 3,069 26,111
AETNA INDEX PLUS SMALL
CAP VP
Value at beginning of period $8.834 $9.876(8)
Value at end of period $9.694 $8.834
Number of accumulation units
outstanding at end of period 1,965 26,257
<CAPTION>
1994 1993 1992 1991 1990
------- ------- ------- ------- -------
<S> <C> <C> <C> <C> <C
AETNA ASCENT VP
Value at beginning of period
Value at end of period
Number of accumulation units
outstanding at end of period
AETNA BALANCED VP, INC
Value at beginning of period $11.057 $10.189 $12.736(2) $10.896 $10.437
Value at end of period $10.868 $11.057 $10.189 $12.736 $10.896
Number of accumulation units
outstanding at end of period 23,139,604 11,368,365 11,508 22,898,099 17,078,985
AETNA BOND VP
Value at beginning of period $10.905 $10.068 $36.789(3) $31.192 $28.943
Value at end of period $10.360 $10.905 $10.068 $36.789 $31.192
Number of accumulation units
outstanding at end of period 11,713,354 4,084,142 3,870 7,844,412 6,984,793
AETNA CROSSROADS VP
Value at beginning of period
Value at end of period
Number of accumulation units
outstanding at end of period
AETNA GROWTH VP
Value at beginning of period
Value at end of period
Number of accumulation units
outstanding at end of period
AETNA GROWTH AND
INCOME VP
Value at beginning of period $11.020 $10.454 $97.165(5) $77.845 $76.311
Value at end of period $10.778 $11.020 $10.454 $97.165 $77.845
Number of accumulation units
outstanding at end of period 114,733,035 44,166,470 21,250 20,948,226 18,362,906
AETNA HIGH YIELD VP
Value at beginning of period
Value at end of period
Number of accumulation units
outstanding at end of period
AETNA INDEX PLUS LARGE
CAP VP
Value at beginning of period
Value at end of period
Number of accumulation units
outstanding at end of period
AETNA INDEX PLUS MID
CAP VP
Value at beginning of period
Value at end of period
Number of accumulation units
outstanding at end of period
AETNA INDEX PLUS SMALL
CAP VP
Value at beginning of period
Value at end of period
Number of accumulation units
outstanding at end of period
</TABLE>
116
<PAGE>
Condensed Financial Information (continued)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
1999 1998 1997 1996 1995
-------- ------- ------- ------- ----------
<S> <C> <C> <C> <C> <C>
AETNA INTERNATIONAL VP
Value at beginning of period $9.785 $9.974(9)
Value at end of period $14.668 $9.785
Number of accumulation units
outstanding at end of period 752 168
AETNA LEGACY VP
Value at beginning of period $14.336 $13.534 $11.932 $10.580 $10.000(1)
Value at end of period $15.208 $14.336 $13.534 $11.932 $10.580
Number of accumulation units
outstanding at end of period 7,165 80,907 82,178 7,543 143,637
AETNA MONEY MARKET VP
Value at beginning of period $12.524 $11.989 $11.475 $11.026 $10.528
Value at end of period $13.035 $12.524 $11.989 $11.475 $11.026
Number of accumulation units
outstanding at end of period 81,149 300,195 477,490 179,361 12,999,680
AETNA REAL ESTATE
SECURITIES VP
Value at beginning of period $8.891 $10.024(8)
Value at end of period $8.436 $8.891
Number of accumulation units
outstanding at end of period 107 1,415
AETNA SMALL COMPANY
VP
Value at beginning of period $13.704 $13.684 $13.248(4)
Value at end of period $17.762 $13.704 $13.684
Number of accumulation units
outstanding at end of period 9,745 49,514 4,993
AETNA VALUE
OPPORTUNITY VP
Value at beginning of period $16.113 $13.290 $13.093(4)
Value at end of period $19.085 $16.113 $13.290
Number of accumulation units
outstanding at end of period 4,285 32,612 4,910
AIM V.I. CAPITAL
APPRECIATION FUND
Value at beginning of period $9.660(11)
Value at end of period $13.745
Number of accumulation units
outstanding at end of period 42
AIM V.I. GROWTH FUND
Value at beginning of period $10.595(12)
Value at end of period $12.098
Number of accumulation units
outstanding at end of period 18
AIM V.I. GROWTH AND
INCOME FUND
Value at beginning of period $9.601(11)
Value at end of period $11.710
Number of accumulation units
outstanding at end of period 115
AIM V.I. VALUE FUND
Value at beginning of period $9.845(13)
Value at end of period $11.495
Number of accumulation units
outstanding at end of period 674
CALVERT SOCIAL
BALANCED PORTFOLIO
Value at beginning of period $20.612 $17.896 $15.046 $13.527 $10.554
Value at end of period $22.913 $20.612 $17.896 $15.046 $13.527
Number of accumulation units
outstanding at end of period 6,811 37,944 62,328 21,317 966,098
FIDELITY VIP EQUITY-
INCOME PORTFOLIO
Value at beginning of period $17.567 $15.887 $12.520 $11.092 $10.000(1)
Value at end of period $18.502 $17.567 $15.887 $12.520 $11.092
Number of accumulation units
outstanding at end of period 14,979 68,970 114,725 27,814 1,660,304
FIDELITY VIP GROWTH
PORTFOLIO
Value at beginning of period $19.273 $13.948 $11.404 $10.066 $10.000(1)
Value at end of period $26.237 $19.273 $13.948 $11.404 $10.066
Number of accumulation units
outstanding at end of period 43,826 176,188 191,151 60,491 1,833,794
<CAPTION>
1994 1993 1992 1991 1990
-------- ------- ------- ------- ----------
<S> <C> <C> <C> <C> <C>
AETNA INTERNATIONAL VP
Value at beginning of period
Value at end of period
Number of accumulation units
outstanding at end of period
AETNA LEGACY VP
Value at beginning of period
Value at end of period
Number of accumulation units
outstanding at end of period
AETNA MONEY MARKET VP
Value at beginning of period $10.241 $10.048 $33.812(10) $32.138 $30.012
Value at end of period $10.528 $10.241 $10.048 $33.812 $32.138
Number of accumulation units
outstanding at end of period 7,673,528 2,766,044 825 8,430,082 10,220,110
AETNA REAL ESTATE
SECURITIES VP
Value at beginning of period
Value at end of period
Number of accumulation units
outstanding at end of period
AETNA SMALL COMPANY
VP
Value at beginning of period
Value at end of period
Number of accumulation units
outstanding at end of period
AETNA VALUE
OPPORTUNITY VP
Value at beginning of period
Value at end of period
Number of accumulation units
outstanding at end of period
AIM V.I. CAPITAL
APPRECIATION FUND
Value at beginning of period
Value at end of period
Number of accumulation units
outstanding at end of period
AIM V.I. GROWTH FUND
Value at beginning of period
Value at end of period
Number of accumulation units
outstanding at end of period
AIM V.I. GROWTH AND
INCOME FUND
Value at beginning of period
Value at end of period
Number of accumulation units
outstanding at end of period
AIM V.I. VALUE FUND
Value at beginning of period
Value at end of period
Number of accumulation units
outstanding at end of period
CALVERT SOCIAL
BALANCED PORTFOLIO
Value at beginning of period $11.036 $10.278 $10.000(14)
Value at end of period $10.554 $11.036 $10.278
Number of accumulation units
outstanding at end of period 521,141 144,168 2,556
FIDELITY VIP EQUITY-
INCOME PORTFOLIO
Value at beginning of period
Value at end of period
Number of accumulation units
outstanding at end of period
FIDELITY VIP GROWTH
PORTFOLIO
Value at beginning of period
Value at end of period
Number of accumulation units
outstanding at end of period
</TABLE>
117
<PAGE>
Condensed Financial Information (continued)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
1999 1998 1997 1996 1995
-------- ------- ------- ------- ----------
<S> <C> <C> <C> <C> <C>
FIDELITY VIP OVERSEAS
PORTFOLIO
Value at beginning of period $13.746 $12.308 $11.138 $9.961 $10.000(1)
Value at end of period $19.420 $13.746 $12.308 $11.138 $9.961
Number of accumulation units
outstanding at end of period 3,845 17,178 19,949 2,023 196,090
FIDELITY VIP II
CONTRAFUND[Reg TM]
PORTFOLIO
Value at beginning of period $19.722 $15.318 $12.457 $10.397 $10.000(1)
Value at end of period $24.274 $19.722 $15.318 $12.457 $10.397
Number of accumulation units
outstanding at end of period $37,380 187,525 263,159 41,394 2,116,732
JANUS ASPEN AGGRESSIVE
GROWTH PORTFOLIO
Value at beginning of period $21.081 $15.851 $14.204 $13.322 $10.581
Value at end of period $47.068 $21.081 $15.851 $14.204 $13.322
Number of accumulation units
outstanding at end of period 79,376 212,741 294,623 122,154 4,887,060
JANUS ASPEN BALANCED
PORTFOLIO
Value at beginning of period $20.031 $15.059 $12.451 $10.850 $10.000(1)
Value at end of period $25.151 $20.031 $15.059 $12.451 $10.850
Number of accumulation units
outstanding at end of period 32,085 89,095 78,052 12,340 93,304
JANUS ASPEN FLEXIBLE
INCOME PORTFOLIO
Value at beginning of period $15.583 $14.418 $13.024 $12.077 $9.873
Value at end of period $15.683 $15.583 $14.418 $13.024 $12.077
Number of accumulation units
outstanding at end of period 6,316 20,317 13,587 3,861 315,361
JANUS ASPEN GROWTH
PORTFOLIO
Value at beginning of period $20.778 $15.463 $12.718 $10.870 $10.000(1)
Value at end of period $29.635 $20.778 $15.463 $12.718 $10.870
Number of accumulation units
outstanding at end of period 38,376 61,355 93,386 29,696 259,196
JANUS ASPEN
WORLDWIDE GROWTH
PORTFOLIO
Value at beginning of period $21.419 $16.773 $13.862 $10.877 $10.000(1)
Value at end of period $34.891 $21.419 $16.773 $13.862 $10.877
Number of accumulation units
outstanding at end of period 81,241 301,775 538,281 124,749 1,036,040
LEXINGTON NATURAL
RESOURCES TRUST
Value at beginning of period $12.412 $15.590 $14.688 $11.720 $10.154
Value at end of period $14.028 $12.412 $15.590 $14.688 $11.720
Number of accumulation units
outstanding at end of period 9,116 38,283 103,604 10,977 711,892
OPPENHEIMER GLOBAL
SECURITIES FUND/VA
Value at beginning of period $10.039 $10.042(8)
Value at end of period $15.760 $10.039
Number of accumulation units
outstanding at end of period 329 382
OPPENHEIMER STRATEGIC
BOND FUND/VA
Value at beginning of period $9.915 $9.992(8)
Value at end of period $10.099 $9.915
Number of accumulation units
outstanding at end of period 3,113 5,938
PPI MFS CAPITAL
OPPORTUNITIES
PORTFOLIO
Value at beginning of period $24.294 $19.352 $19.071(16)
Value at end of period $35.806 $24.294 $19.352
Number of accumulation units
outstanding at end of period 18,282 171,102 206,191
PPI MFS EMERGING
EQUITIES PORTFOLIO
Value at beginning of period $19.232 $14.974 $15.158(16)
Value at end of period $28.743 $19.232 $14.974
Number of accumulation units
outstanding at end of period 73,452 398,717 703,653
<CAPTION>
1994 1993 1992 1991 1990
-------- ------- ------- ------- ----------
<S> <C> <C> <C> <C> <C>
FIDELITY VIP OVERSEAS
PORTFOLIO
Value at beginning of period
Value at end of period
Number of accumulation units
outstanding at end of period
FIDELITY VIP II
CONTRAFUND[Reg TM]
PORTFOLIO
Value at beginning of period
Value at end of period
Number of accumulation units
outstanding at end of period
JANUS ASPEN AGGRESSIVE
GROWTH PORTFOLIO
Value at beginning of period $10.000(15)
Value at end of period $10.581
Number of accumulation units
outstanding at end of period 753,862
JANUS ASPEN BALANCED
PORTFOLIO
Value at beginning of period
Value at end of period
Number of accumulation units
outstanding at end of period
JANUS ASPEN FLEXIBLE
INCOME PORTFOLIO
Value at beginning of period $10.000(15)
Value at end of period $9.873
Number of accumulation units
outstanding at end of period 28,543
JANUS ASPEN GROWTH
PORTFOLIO
Value at beginning of period
Value at end of period
Number of accumulation units
outstanding at end of period
JANUS ASPEN
WORLDWIDE GROWTH
PORTFOLIO
Value at beginning of period
Value at end of period
Number of accumulation units
outstanding at end of period
LEXINGTON NATURAL
RESOURCES TRUST
Value at beginning of period $10.877 $9.832 $10.000(14)
Value at end of period $10.154 $10.877 $9.832
Number of accumulation units
outstanding at end of period 703,676 135,614 561
OPPENHEIMER GLOBAL
SECURITIES FUND/VA
Value at beginning of period
Value at end of period
Number of accumulation units
outstanding at end of period
OPPENHEIMER STRATEGIC
BOND FUND/VA
Value at beginning of period
Value at end of period
Number of accumulation units
outstanding at end of period
PPI MFS CAPITAL
OPPORTUNITIES
PORTFOLIO
Value at beginning of period
Value at end of period
Number of accumulation units
outstanding at end of period
PPI MFS EMERGING
EQUITIES PORTFOLIO
Value at beginning of period
Value at end of period
Number of accumulation units
outstanding at end of period
</TABLE>
118
<PAGE>
Condensed Financial Information (continued)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
1999 1998 1997 1996 1995 1994 1993 1992 1991 1990
------- -------- ------- ------ ------ ------ ------ ------ ------ -----
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
PPI MFS RESEARCH
GROWTH PORTFOLIO
Value at beginning of period $16.861 $13.839 $14.108(16)
Value at end of period $20.716 $16.861 $13.839
Number of accumulation units
outstanding at end of period 66,415 431,603 627,658
PPI MFS SCUDDER
INTERNATIONAL GROWTH
PORTFOLIO
Value at beginning of period $20.102 $17.040 $16.825(16)
Value at end of period $31.542 $20.102 $17.040
Number of accumulation units
outstanding at end of period 35,480 353,311 457,354
PPI T. ROWE PRICE
GROWTH EQUITY
PORTFOLIO
Value at beginning of period $18.258 $14.445 $14.153(16)
Value at end of period $22.123 $18.258 $14.445
Number of accumulation units
outstanding at end of period 19,172 109,123 200,374
</TABLE>
- -----------------
(1) The initial accumulation unit value was established at $10.000 during
August 1995, when the fund became available under the contract.
(2) The accumulation unit value was converted to $10.000 on August 21, 1992
upon the commencement of a new administrative system. Immediately prior to
that date, the accumulation unit value of the fund was $13.118. On the date
of conversion, additional units were issued so that account values were not
changed as a result of the conversion.
(3) The accumulation unit value was established at $10.000 on August 21, 1992
upon the commencement of a new administrative system. Immediately prior to
that date, the accumulation unit value of the fund was $38.521. On the date
of conversion, additional units were issued so that account values were not
changed as a result of the conversion.
(4) Funds were first received in this option during December 1997.
(5) The accumulation unit value was converted to $10.000 on August 21, 1992
upon the commencement of a new administrative system. Immediately prior to
that date, the accumulation unit value of the fund was $97.817. On the date
of conversion, additional units were issued so that account values were not
changed as a result of the conversion.
(6) Funds were first received in this option during July 1998.
(7) The initial accumulation unit value was established during December 1996
when the portfolio became available under the contract, when the funds were
first received in this option or when the applicable daily asset charge was
first utilized.
(8) Funds were first received in this option during May 1998.
(9) Funds were first received in this option during August 1998.
(10) The accumulation unit value was converted to $10.000 on August 21, 1992
upon the commencement of a new administrative system. Immediately prior to
that date, the accumulation unit value of the fund was $34.397. On the date
of conversion, additional units were issued so that account values were not
changed as a result of the conversion.
(11) Funds were first received in this option during June 1999.
(12) Funds were first received in this option during November 1999.
(13) Funds were first received in this option during August 1999.
(14) The initial accumulation unit value was established at $10.000 on August
21, 1992, the date on which the fund/portfolio became available under the
contract.
(15) The initial accumulation unit value was established at $10.000 during
October 1994, when the funds ere first received in this option.
(16) Funds were first received in this option during November 1997.
119
<PAGE>
Condensed Financial Information
- --------------------------------------------------------------------------------
TABLE XVIII
FOR CONTRACTS ISSUED TO MISSOURI MUNICIPAL LEAGUE UNDER DEFERRED
COMPENSATION PLANS WITH TOTAL SEPARATE ACCOUNT CHARGES OF 0.80%
(Selected data for accumulation units outstanding throughout each period)
================================================================================
The condensed financial information presented below for the period ended
December 31, 1999, is derived from the financial statements of the separate
account, which have been audited by KPMG LLP, independent auditors. The
financial statements and the independent auditors' report thereon for the year
ended December 31, 1999 are included in the Statement of Additional
Information.
<TABLE>
<CAPTION>
1999
-------
<S> <C>
AETNA ASCENT VP
Value at beginning of period $16.800(1)
Value at end of period $18.122
Number of accumulation units outstanding at end of period 14,127
AETNA BALANCED VP, INC.
Value at beginning of period $22.705(1)
Value at end of period $24.619
Number of accumulation units outstanding at end of period 246,195
AETNA BOND VP
Value at beginning of period $14.118(1)
Value at end of period $13.999
Number of accumulation units outstanding at end of period 23,788
AETNA CROSSROADS VP
Value at beginning of period $15.738(1)
Value at end of period $16.624
Number of accumulation units outstanding at end of period 12,284
AETNA GROWTH VP
Value at beginning of period $19.053(1)
Value at end of period $24.094
Number of accumulation units outstanding at end of period 61,303
AETNA GROWTH AND INCOME VP
Value at beginning of period $26.736(1)
Value at end of period $29.394
Number of accumulation units outstanding at end of period 948,654
AETNA HIGH YIELD VP
Value at beginning of period $9.492(2)
Value at end of period $9.798
Number of accumulation units outstanding at end of period 61
AETNA INDEX PLUS LARGE CAP VP
Value at beginning of period $20.242(1)
Value at end of period $23.277
Number of accumulation units outstanding at end of period 309,655
AETNA INDEX PLUS MID CAP VP
Value at beginning of period $10.927(1)
Value at end of period $12.530
Number of accumulation units outstanding at end of period 2,027
AETNA INDEX PLUS SMALL CAP VP
Value at beginning of period $8.783(1)
Value at end of period $9.703
Number of accumulation units outstanding at end of period 5,600
AETNA INTERNATIONAL VP
Value at beginning of period $10.489(1)
Value at end of period $14.681
Number of accumulation units outstanding at end of period 1,250
AETNA LEGACY VP
Value at beginning of period $14.711(1)
Value at end of period $15.222
Number of accumulation units outstanding at end of period 42,489
AETNA MONEY MARKET VP
Value at beginning of period $12.707(1)
Value at end of period $13.047
Number of accumulation units outstanding at end of period 139,150
AETNA REAL ESTATE SECURITIES VP
Value at beginning of period $9.523(1)
Value at end of period $8.443
Number of accumulation units outstanding at end of period 608
AETNA SMALL COMPANY VP
Value at beginning of period $14.508(1)
Value at end of period $17.778
Number of accumulation units outstanding at end of period 29,452
AETNA VALUE OPPORTUNITY VP
Value at beginning of period $17.291(1)
Value at end of period $19.103
Number of accumulation units outstanding at end of period 11,792
</TABLE>
120
<PAGE>
Condensed Financial Information (continued)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
1999
-------
<S> <C>
AIM V.I. GROWTH FUND
Value at beginning of period $11.240(3)
Value at end of period $12.110
Number of accumulation units outstanding at end of period 2,843
AIM V.I. GROWTH AND INCOME FUND
Value at beginning of period $9.727(4)
Value at end of period $11.721
Number of accumulation units outstanding at end of period 1,867
CALVERT SOCIAL BALANCED PORTFOLIO
Value at beginning of period $21.036(1)
Value at end of period $22.935
Number of accumulation units outstanding at end of period 2,376
FIDELITY VIP EQUITY-INCOME PORTFOLIO
Value at beginning of period $19.392(1)
Value at end of period $18.519
Number of accumulation units outstanding at end of period 25,382
FIDELITY VIP GROWTH PORTFOLIO
Value at beginning of period $21.072(1)
Value at end of period $26.262
Number of accumulation units outstanding at end of period 82,069
FIDELITY VIP OVERSEAS PORTFOLIO
Value at beginning of period $14.422(1)
Value at end of period $19.438
Number of accumulation units outstanding at end of period 7,321
FIDELITY VIP II CONTRAFUND[Reg TM] PORTFOLIO
Value at beginning of period $21.258(1)
Value at end of period $24.296
Number of accumulation units outstanding at end of period 82,920
JANUS ASPEN AGGRESSIVE GROWTH PORTFOLIO
Value at beginning of period $27.003(1)
Value at end of period $47.112
Number of accumulation units outstanding at end of period 214,523
JANUS ASPEN BALANCED PORTFOLIO
Value at beginning of period $22.140(1)
Value at end of period $25.174
Number of accumulation units outstanding at end of period 80,071
JANUS ASPEN FLEXIBLE INCOME PORTFOLIO
Value at beginning of period $15.603(1)
Value at end of period $15.698
Number of accumulation units outstanding at end of period 9,552
JANUS ASPEN GROWTH PORTFOLIO
Value at beginning of period $23.156(1)
Value at end of period $29.662
Number of accumulation units outstanding at end of period 63,406
JANUS ASPEN WORLDWIDE GROWTH PORTFOLIO
Value at beginning of period $23.168(1)
Value at end of period $34.923
Number of accumulation units outstanding at end of period 216,743
LEXINGTON NATURAL RESOURCES TRUST
Value at beginning of period $14.452(1)
Value at end of period $14.041
Number of accumulation units outstanding at end of period 4,390
OPPENHEIMER GLOBAL SECURITIES FUND/VA
Value at beginning of period $10.913(1)
Value at end of period $15.775
Number of accumulation units outstanding at end of period 14,641
OPPENHEIMER STRATEGIC BOND FUND/VA
Value at beginning of period $9.954(1)
Value at end of period $10.108
Number of accumulation units outstanding at end of period 3,895
PPI MFS CAPITAL OPPORTUNITIES PORTFOLIO
Value at beginning of period $27.595(1)
Value at end of period $35.839
Number of accumulation units outstanding at end of period 23,458
PPI MFS EMERGING EQUITIES PORTFOLIO
Value at beginning of period $20.019(1)
Value at end of period $28.769
Number of accumulation units outstanding at end of period 194,333
PPI MFS RESEARCH GROWTH PORTFOLIO
Value at beginning of period $17.376(1)
Value at end of period $20.735
Number of accumulation units outstanding at end of period 86,899
PPI SCUDDER INTERNATIONAL GROWTH PORTFOLIO
Value at beginning of period $21.199(1)
Value at end of period $31.571
Number of accumulation units outstanding at end of period 79,515
</TABLE>
121
<PAGE>
Condensed Financial Information (continued)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
1999
--------
<S> <C>
PPI T. ROWE PRICE GROWTH EQUITY PORTFOLIO
Value at beginning of period $19.112(1)
Value at end of period $22.144
Number of accumulation units outstanding at end of period 53,724
</TABLE>
- -----------------
(1) Funds were first received in this option during May 1999.
(2) Funds were first received in this option during August 1999.
(3) Funds were first received in this option during December 1999.
(4) Funds were first received in this option during October 1999.
122
<PAGE>
Condensed Financial Information
- --------------------------------------------------------------------------------
TABLE XIX
FOR CONTRACTS ISSUED TO METROPOLITAN UTILITIES DISTRICT UNDER DEFERRED
COMPENSATION PLANS WITH TOTAL SEPARATE ACCOUNT CHARGES OF 0.80%
(Selected data for accumulation units outstanding throughout each period)
================================================================================
The condensed financial information presented below for the period ended
December 31, 1999, is derived from the financial statements of the separate
account, which have been audited by KPMG LLP, independent auditors. The
financial statements and the independent auditors' report thereon for the year
ended December 31, 1999 are included in the Statement of Additional
Information.
<TABLE>
<CAPTION>
1999
--------
<S> <C>
AETNA ASCENT VP
Value at beginning of period $16.828(1)
Value at end of period $18.152
Number of accumulation units outstanding at end of period 9,510
AETNA BALANCED VP, INC.
Value at beginning of period $22.742(1)
Value at end of period $24.660
Number of accumulation units outstanding at end of period 89,985
AETNA BOND VP
Value at beginning of period $14.142(1)
Value at end of period $14.022
Number of accumulation units outstanding at end of period 74,784
AETNA CROSSROADS VP
Value at beginning of period $15.764(1)
Value at end of period $16.652
Number of accumulation units outstanding at end of period 12,822
AETNA GROWTH VP
Value at beginning of period $19.053(1)
Value at end of period $24.094
Number of accumulation units outstanding at end of period 72,901
AETNA GROWTH AND INCOME VP
Value at beginning of period $26.781(1)
Value at end of period $29.443
Number of accumulation units outstanding at end of period 1,234,587
AETNA HIGH YIELD VP
Value at beginning of period $9.716(1)
Value at end of period $9.798
Number of accumulation units outstanding at end of period 3,126
AETNA INDEX PLUS LARGE CAP VP
Value at beginning of period $20.257(1)
Value at end of period $23.294
Number of accumulation units outstanding at end of period 120,481
AETNA INDEX PLUS MID CAP VP
Value at beginning of period $10.927(1)
Value at end of period $12.530
Number of accumulation units outstanding at end of period 6,386
AETNA INDEX PLUS SMALL CAP VP
Value at beginning of period $8.783(1)
Value at end of period $9.703
Number of accumulation units outstanding at end of period 5,603
AETNA INTERNATIONAL VP
Value at beginning of period $10.489(1)
Value at end of period $14.681
Number of accumulation units outstanding at end of period 19,174
AETNA LEGACY VP
Value at beginning of period $14.736(1)
Value at end of period $15.248
Number of accumulation units outstanding at end of period 8,034
AETNA MONEY MARKET VP
Value at beginning of period $12.728(1)
Value at end of period $13.069
Number of accumulation units outstanding at end of period 124,835
AETNA REAL ESTATE SECURITIES VP
Value at beginning of period $9.523(1)
Value at end of period $8.443
Number of accumulation units outstanding at end of period 3,605
AETNA SMALL COMPANY VP
Value at beginning of period $14.508(1)
Value at end of period $17.778
Number of accumulation units outstanding at end of period 37,985
AETNA VALUE OPPORTUNITY VP
Value at beginning of period $17.291(1)
Value at end of period $19.103
Number of accumulation units outstanding at end of period 19,132
</TABLE>
123
<PAGE>
Condensed Financial Information (continued)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
1999
-------
<S> <C>
CALVERT SOCIAL BALANCED PORTFOLIO
Value at beginning of period $21.071(1)
Value at end of period $22.973
Number of accumulation units outstanding at end of period 3,697
FIDELITY VIP EQUITY-INCOME PORTFOLIO
Value at beginning of period $19.424(1)
Value at end of period $18.550
Number of accumulation units outstanding at end of period 37,177
FIDELITY VIP GROWTH PORTFOLIO
Value at beginning of period $21.107(1)
Value at end of period $26.305
Number of accumulation units outstanding at end of period 73,156
FIDELITY VIP OVERSEAS PORTFOLIO
Value at beginning of period $14.446(1)
Value at end of period $19.470
Number of accumulation units outstanding at end of period 11,298
FIDELITY VIP II CONTRAFUND[Reg TM] PORTFOLIO
Value at beginning of period $21.293(1)
Value at end of period $24.336
Number of accumulation units outstanding at end of period 111,857
JANUS ASPEN AGGRESSIVE GROWTH PORTFOLIO
Value at beginning of period $27.048(1)
Value at end of period $47.190
Number of accumulation units outstanding at end of period 130,374
JANUS ASPEN BALANCED PORTFOLIO
Value at beginning of period $22.177(1)
Value at end of period $25.216
Number of accumulation units outstanding at end of period 42,380
JANUS ASPEN FLEXIBLE INCOME PORTFOLIO
Value at beginning of period $15.629(1)
Value at end of period $15.724
Number of accumulation units outstanding at end of period 8,959
JANUS ASPEN GROWTH PORTFOLIO
Value at beginning of period $23.195(1)
Value at end of period $29.712
Number of accumulation units outstanding at end of period 45,184
JANUS ASPEN WORLDWIDE GROWTH PORTFOLIO
Value at beginning of period $23.206(1)
Value at end of period $34.982
Number of accumulation units outstanding at end of period 158,965
LEXINGTON NATURAL RESOURCES TRUST
Value at beginning of period $14.476(1)
Value at end of period $14.064
Number of accumulation units outstanding at end of period 4,217
OPPENHEIMER GLOBAL SECURITIES FUND/VA
Value at beginning of period $10.913(1)
Value at end of period $15.775
Number of accumulation units outstanding at end of period 2,690
OPPENHEIMER STRATEGIC BOND FUND/VA
Value at beginning of period $9.954(1)
Value at end of period $10.108
Number of accumulation units outstanding at end of period 483
PPI MFS CAPITAL OPPORTUNITIES PORTFOLIO
Value at beginning of period $27.641(1)
Value at end of period $35.899
Number of accumulation units outstanding at end of period 29,139
PPI MFS EMERGING EQUITIES PORTFOLIO
Value at beginning of period $20.053(1)
Value at end of period $28.817
Number of accumulation units outstanding at end of period 197,164
PPI MFS RESEARCH GROWTH PORTFOLIO
Value at beginning of period $17.405(1)
Value at end of period $20.770
Number of accumulation units outstanding at end of period 94,525
PPI SCUDDER INTERNATIONAL GROWTH PORTFOLIO
Value at beginning of period $21.234(1)
Value at end of period $31.624
Number of accumulation units outstanding at end of period 46,782
PPI T. ROWE PRICE GROWTH EQUITY PORTFOLIO
Value at beginning of period $19.144(1)
Value at end of period $22.181
Number of accumulation units outstanding at end of period 51,974
</TABLE>
- -----------------
(1) Funds were first received in this option during May 1999.
124
<PAGE>
For Master Applications Only
- --------------------------------------------------------------------------------
I hereby acknowledge receipt of an Account C prospectus dated May 1, 2000, as
well as all current prospectuses for the funds available under the Contracts.
- --- Please send an Account C Statement of Additional Information (Form No.
SAI.01107-00) dated May 1, 2000.
- --------------------------------------------------------------------------------
CONTRACT HOLDER'S SIGNATURE
- --------------------------------------------------------------------------------
DATE
PRO.01107-00
<PAGE>
Prospectus - May 1, 2000
- --------------------------------------------------------------------------------
The Funds
Aetna Ascent VP
Aetna Balanced VP, Inc.
Aetna Income Shares d/b/a Aetna Bond VP
Aetna Crossroads VP
Aetna Growth VP
Aetna Variable Fund d/b/a Aetna Growth and Income VP
Aetna High Yield VP(1)
Aetna Index Plus Large Cap VP
Aetna Index Plus Mid Cap VP
Aetna Index Plus Small Cap VP
Aetna International VP
Aetna Legacy VP
Aetna Variable Encore Fund d/b/a Aetna Money Market VP
Aetna Real Estate Securities VP(1)
Aetna Small Company VP
Aetna Technology VP
Aetna Value Opportunity VP
AIM V.I. Capital Appreciation Fund
AIM V.I. Growth Fund
AIM V.I. Growth and Income Fund
AIM V.I. Value Fund
Calvert Social Balanced Portfolio
DEM[Reg TM] Equity Fund (Institutional Shares)(2)
Fidelity Variable Insurance Products Fund (VIP) Equity-Income Portfolio
Fidelity Variable Insurance Products Fund (VIP) Growth Portfolio
Fidelity Variable Insurance Products Fund (VIP) Overseas Portfolio
Fidelity Variable Insurance Products Fund II (VIP II) Contrafund[Reg TM]
Portfolio
Janus Aspen Aggressive Growth Portfolio
Janus Aspen Balanced Portfolio
Janus Aspen Flexible Income Portfolio
Janus Aspen Growth Portfolio
Janus Aspen Worldwide Growth Portfolio
Janus Twenty Fund(2)
Lexington Natural Resources Trust(3)
Oppenheimer Global Securities Fund/VA
Oppenheimer Strategic Bond Fund/VA
Portfolio Partners, Inc. (PPI) MFS Capital Opportunities Portfolio (formerly
PPI MFS Value Equity Portfolio)
Portfolio Partners, Inc. (PPI) MFS Emerging Equities Portfolio
Portfolio Partners, Inc. (PPI) MFS Research Growth Portfolio
Portfolio Partners, Inc. (PPI) Scudder International Growth Portfolio
Portfolio Partners, Inc. (PPI) T. Rowe Price Growth Equity Portfolio
The Contracts. The contracts described in this prospectus are group or
individual deferred variable annuity contracts issued by Aetna Life Insurance
and Annuity Company (the Company). They are intended to be used as funding
vehicles for certain types of retirement plans and to qualify for beneficial
tax treatment and/or to provide current income reduction under certain sections
of the Internal Revenue Code of 1986, as amended (Tax Code).
- --------------------------------------------------------------------------------
Why Reading this Prospectus is Important. Before you participate in the
contract through your retirement plan, you should read this prospectus. It
provides facts about the contract and its investment options. Plan sponsors
(generally your employer or a trust) should read this prospectus to help
determine if the contract is appropriate for their plan. Keep this document for
future reference.
Table of Contents . . . page 4
- --------------------------------------------------------------------------------
Investment Options. The contracts offer variable investment options and fixed
interest options. When we establish your account(s), the contract holder, or
you if permitted by the plan, instructs us to direct account dollars to any of
the available options. Some investment options may be unavailable through
certain contracts and plans, or in some states.
Variable Investment Options. These options are called subaccounts. The
subaccounts are within Variable Annuity Account C (the separate account), a
separate account of the Company. Each subaccount invests in one of the mutual
funds (funds) listed on this page. Earnings on amounts invested in a subaccount
will vary depending upon the performance and fees of its underlying fund. You
do not invest directly in or hold shares of the funds.
Risks Associated with Investing in the Funds. Information about the risks of
investing in the funds is located in the "Investment Option" section of this
prospectus at page 11 and in each fund prospectus. Read this prospectus in
conjunction with the fund prospectus, and retain the prospectus for future
reference.
Getting Additional Information. You may obtain the May 1, 2000, Statement of
Additional Information (SAI) by indicating your request on your enrollment
materials or calling the Company at 1-800-262-3862. You may also obtain an SAI
for any of the funds by calling that number. This prospectus, the SAI and other
information about the separate account are posted on the Securities and
Exchange Commission (SEC) web site, www.sec.gov and copies of this information
may also be obtained, after paying a duplicating fee, by contacting the SEC
Public Reference Room electronically at the following e-mail address:
[email protected], or by writing the Commission's Public Reference Section,
- -------------------------
(1) Effective May 15, 2000, transfers or deposits are not allowed into the
subaccount investing in this fund except those made pursuant to standing
customer instructions (e.g., payroll deduction allocations, dollar cost
averaging) in effect prior to this date. See "Important Information
Regarding Aetna High Yield VP and Aetna Real Estate Securities VP
Subaccounts."
(2) This fund is available to the general public. See "Additional Risks of
Investing in the Funds."
(3) Transfers or deposits are not allowed into the subaccount investing in this
fund, except from accounts established under the contract before May 1,
1998. As soon as all those who have current allocations to the subaccount
under the contract have redirected their allocations to other investment
options, we will close the subaccount to all investments (except loan
repayments that we automatically deposit into the subaccount according to
our loan repayment procedures).
<PAGE>
Prospectus - May 1, 2000 (continued)
- --------------------------------------------------------------------------------
Washington, D.C. 20549-0102. This information can be reviewed and copied at the
Commission's Public Reference Room in Washington, D.C. and information on the
operation of the Public Reference Room may be obtained by calling
1-202-942-8090. The SAI table of contents is listed on page 47 of this
prospectus. The SAI is incorporated into this prospectus by reference.
Additional Disclosure Information. Neither the SEC, nor any state securities
commission, has approved or disapproved the securities offered through this
prospectus or passed on the accuracy or adequacy of this prospectus. Any
representation to the contrary is a criminal offense. This prospectus is valid
only when accompanied by current prospectuses of the funds and the Guaranteed
Accumulation Account. We do not intend for this prospectus to be an offer to
sell or a solicitation of an offer to buy these securities in any state that
does not permit their sale. We have not authorized anyone to provide you with
information that is different from that contained in this prospectus.
Fixed Interest Options.
> Guaranteed Accumulation Account
> Fixed Plus Account
> Fixed Account
Except as specifically mentioned, this prospectus describes only the variable
investment options. However, we describe the fixed interest options in the
appendices to this prospectus. There is also a separate prospectus for the
Guaranteed Accumulation Account.
Important Information Regarding Aetna High Yield VP and Aetna Real Estate
Securities VP Subaccounts
Subaccounts to be Closed to New Investments
Effective May 15, 2000, the Aetna High Yield VP and Aetna Real Estate
Securities VP subaccounts will no longer be available for new investment. After
that date, the Company will only accept deposits into those subaccounts that
are made pursuant to standing customer instructions (e.g., payroll deduction
allocations, dollar cost averaging, etc.) in effect before the close of
business on May 12, 2000.
Fund Shares to be Substituted with Shares of Aetna Money Market VP.
Plan of Substitution. On or before September 1, 2000, subject to applicable
regulatory approvals and the requisite vote of shareholders of the applicable
fund, all existing balances in Aetna High Yield VP and Aetna Real Estate
Securities VP will be invested in (substituted with) shares of Aetna Money
Market VP. Contract owners or participants will not incur any fees or charges
as a result of the substitution. In addition, on and after September 1, 2000,
all investment allocations then being directed to the Aetna High Yield VP and
Aetna Real Estate Securities VP subaccounts will be redirected to the Aetna
Money Market VP subaccount. The Company believes that the substitution will not
create any tax liability for contract owners or participants.
<PAGE>
Prospectus - May 1, 2000 (continued)
- --------------------------------------------------------------------------------
Transfer Rights. At any time prior to the date of substitution, contract owners
or participants may transfer their accumulation values from the subaccounts
investing in substituted funds into any other investment options available
under the contract, and no transfer fees or other charges will be imposed. From
and after the date of substitution, contract owners or participants who had
values transferred from a subaccount as a result of a substitution may transfer
among any of the remaining investment options in accordance with the terms of
the contract, also free of any transfer fees and charges.
Surrender Rights. If a contract owner or participant whose shares are
substituted elects to make a surrender under the contract (if permitted by the
plan and applicable tax law) within 30 days after the date of the substitution,
the Company will waive any early withdrawal charge on amounts transferred as a
result of the substitution. This offer to waive the early withdrawal charge
will not apply to amounts transferred after April 10, 2000 from the other
investment options to the Aetna High Yield VP or Aetna Real Estate Securities
VP subaccounts. A contract owner or participant who exercises this surrender
right may incur income tax liability and a tax penalty. See the "Taxation"
section of this prospectus for a discussion of tax consequences resulting from
surrender. Contract owners or participants should seek qualified tax advice
before exercising their surrender rights.
<PAGE>
TABLE OF CONTENTS
<TABLE>
<S> <C>
- ----------------------------------------------------------------------
Contract Overview: Who's Who; Contract Facts .................. 5
The Contract and Your Retirement Plan (sidebar)
Retirement Plan (sidebar)
Plan Type (sidebar)
Contract Rights (sidebar)
Contract Phases: Accumulation Phase, The Income Phase ......... 6
Questions: Contacting the Company (sidebar)
Sending forms and written requests in good order (sidebar)
- ----------------------------------------------------------------------
</TABLE>
<TABLE>
<S> <C>
Fee Table ...................................................... 7
Condensed Financial Information ................................ 11
Investment Options ............................................. 11
Transfers ...................................................... 13
Contract Purchase and Participation ............................ 14
Contract Ownership and Rights .................................. 15
Right to Cancel ................................................ 16
Fees ........................................................... 17
Your Account Value ............................................. 23
Withdrawals .................................................... 25
Loans .......................................................... 27
Systematic Distribution Options ................................ 27
Death Benefit .................................................. 28
The Income Phase ............................................... 30
Taxation ....................................................... 34
Other Topics ................................................... 41
</TABLE>
The Company - Variable Annuity Account C - Performance Reporting - Voting
Rights - Contract Distribution - Contract Modification - Legal Matters and
Proceedings - Payment Delay or Suspension - Transfer of Ownership; Assignment -
Account Termination - Intent to Confirm Quarterly
<TABLE>
<S> <C>
Contents of the Statement of Additional Information ............ 47
Appendix I - Guaranteed Accumulation Account ................... 48
Appendix II - Fixed Account .................................... 50
Appendix III - Fixed Plus Account .............................. 52
Appendix IV - Employee Appointment of Employer as Agent Under an
Annuity Contract ............................................... 56
Appendix V - Fund Descriptions ................................. 57
Appendix VI - Condensed Financial Information .................. 60
</TABLE>
4
<PAGE>
Contract Overview
- --------------------------------------------------------------------------------
The following is intended as a summary. Please read each section of this
prospectus for additional information.
- --------------------------------------------------------------------------------
Who's Who
- --------------------------------------------------------------------------------
You (the participant)*: The individual who participates in the contract through
a retirement plan.
Plan Sponsor: The sponsor of your retirement plan. Generally, your employer or
a trust.
Contract Holder*: The person to whom we issue the contract. Generally, the plan
sponsor.
We (the Company): Aetna Life Insurance and Annuity Company. We issue the
contract.
For greater detail, please review "Contract Ownership and Rights" and "Contract
Purchase and Participation."
- -------------------------
* Certain contracts are purchased by and issued directly to persons
participating in certain plans. The words "you" and "participant" apply to
these individuals, except that these individuals have all rights under the
contract. The word "contract holder" also applies to these individuals,
except that these individuals have no responsibilities to other participants
or beneficiaries.
- --------------------------------------------------------------------------------
Contract Facts
- --------------------------------------------------------------------------------
Free Look/Right to Cancel: Contract holders may cancel the contract no later
than 10 days after they receive the contract (or a longer period if required by
state law). Participants in 403(b) plans or in some plans under 401(a)/401(k)
or 403(a) may cancel their participation in the contract no later than 10 days
after they receive evidence of participation in the contract. See "Right to
Cancel."
Death Benefit: A beneficiary may receive a benefit in the event of your death
prior to the income phase. Death benefits during the income phase depend upon
the payment option selected. See "Death Benefit" and "The Income Phase."
Withdrawals: During the accumulation phase, you may, under some plans, withdraw
all or part of your account value. Amounts withdrawn may be subject to an early
withdrawal charge, other deductions, tax withholding and taxation. See
"Withdrawals" and "Taxation."
Systematic Distribution Options: These allow you to receive regular payments
from your account, while retaining the account in the accumulation phase. See
"Systematic Distribution Options."
Fees: Certain fees are deducted from your account value. See "Fee Table" and
"Fees."
Taxation: You will not generally pay taxes on any earnings from the annuity
contract described in this prospectus until they are withdrawn (or in the case
of a 457 plan, paid or made available to you or a beneficiary). Tax-qualified
retirement arrangements (e.g. 401(a), 401(k), 403(a), 403(b) or 457 plans) also
defer payment of taxes on earnings until they are withdrawn (or in the case of
a 457 plan, paid or made available to you or a beneficiary). When an annuity
contract is used to fund a tax-qualified retirement arrangement, you should
know that the annuity contract does not provide any additional tax deferral of
earnings beyond the tax deferral provided by the tax-qualified retirement
arrangement. However, annuities do provide other features and benefits which
may be valuable to you. You should discuss your alternatives with your
financial representative.
Amounts you receive as a distribution will be generally included in your gross
income and will be subject to taxation. Tax penalties may apply in some
circumstances. See "Taxation."
The Contract and Your Retirement Plan
Retirement Plan (plan): A plan sponsor has established a plan for you. This
contract is offered as a funding option for that plan. We are not a party to
the plan.
Plan Type: We refer to the plan by the Tax Code section under which it
qualifies. For example: a "457 plan" is a plan that qualifies for tax treatment
under code section 457. To learn which code section applies to your plan,
contact your plan sponsor, your Aetna representative or the Company.
Contract Rights: Rights under the contract and who may exercise those rights,
may vary by plan type. Also, while the contract may reserve certain rights for
the contract holder, the contract holder may permit you to exercise those
rights through the plan.
5
<PAGE>
Questions: Contacting the Company. Contact your local representative or write
or call the Home Office:
Aetna Financial Services
Annuity Services
151 Farmington Avenue
Hartford, CT 06156-1277
1-800-262-3862
(1-800-462-4458 for participants in contracts issued to the San Bernardino
County and Macomb County plans)
Sending forms and written requests in good order
If you are writing to change your beneficiary, request a withdrawal, or for any
other purpose, contact your local representative or the Company to learn what
information is required in order for the request to be in "good order." We can
only act upon written requests that are received in good order.
- --------------------------------------------------------------------------------
Contract Phases
- --------------------------------------------------------------------------------
I. The Accumulation Phase (accumulating retirement benefits)
STEP 1: You or the contract holder provide Aetna Life Insurance and Annuity
Company with your completed enrollment materials. According to the plan, we set
up one or more accounts for you. We may set up account(s) for employer
contributions and/or for contributions from your salary.
------------------
Payments to
Your Account
------------------
Step 1
---------------------------------------------------
Aetna Life Insurance and Annuity Company
---------------------------------------------------
(a) Step 2 (b)
- --------- ---------------------------------------------------
Variable Annuity
Fixed Account C
Interest
Options Variable Investment Options
- ---------
---------------------------------------------------
The Subaccounts
---------------------------------------------------
A B Etc.
---------------------------------------------------
Step 3
---------------------------------------------------
Mutual Mutual Etc.
Fund A Fund B
---------------------------------------------------
STEP 2: The contract holder, or you if permitted by your plan, directs us to
invest your account dollars in any of the:
(a) Fixed Interest Options; and/or
(b) Variable Investment Options. (The variable investment options are the
subaccounts of Variable Annuity Account C. Each one invests in a specific
mutual fund.)
STEP 3: The subaccount(s) selected purchases shares of its corresponding fund.
II. The Income Phase
The contract offers several payment options. See "The Income Phase." In
general, you may:
> Receive income phase payments over a lifetime or a specified period;
> Receive income phase payments monthly, quarterly, semi-annually or annually;
> Select an option that provides a death benefit to beneficiaries; or
> Select fixed income phase payments or payments that vary based on the
performance of the variable investment options you select.
6
<PAGE>
Fee Table
- --------------------------------------------------------------------------------
The tables and examples in this section show the fees your account may incur
while accumulating dollars under the contract (the Accumulation Phase). See
"The Income Phase" for fees that may apply after you begin receiving payments
under the contract. The fees shown below do not include premium taxes that may
be applicable.
Maximum Transaction Fees
Maximum Early Withdrawal Charge(1).....................5% of amount withdrawn
This is a deferred sales charge. It is a percentage of the amount withdrawn.
The percentage will be determined by the applicable early withdrawal charge
schedule in the "Fees" section. In certain cases, this charge may not apply to
a portion or all of your withdrawal. The early withdrawal charge reduces over
time.
Maximum Annual Maintenance Fee(1)......................................$30.00
Maximum Fees Deducted From the Subaccounts
Maximum Amounts(1)
(Daily deductions equal to the given percentage on an annual basis)
Mortality and Expense Risk Charge.......................................1.50%
Administrative Expense Charge(2)....................................... 0.25%
-----
Total Separate Account Expenses........................................ 1.75%
=====
- -------------------------
(1) These fees may be waived, reduced or eliminated in certain circumstances.
See "Fees."
(2) We only impose this charge under some contracts. See "Fees."
In This Section:
> Maximum Transaction Fees;
> Maximum Fees Deducted From the Subaccounts;
> Fees Deducted by the Funds; and
> Examples of Fee Deductions.
Also, see the "Fees" section for:
> Early Withdrawal Charge Schedules;
> How, When and Why Fees are Deducted;
> Reduction, Waiver and/or Elimination of Certain Fees; and
> Premium and Other Taxes.
See "The Income Phase" for:
> Fees during the income phase.
7
<PAGE>
Fees Deducted by the Funds
Using this Information. The following table shows the investment advisory fees
and other expenses charged annually by each fund. Fund fees are one factor that
impacts the value of a fund share. To learn about additional factors, refer to
the fund prospectus.
How Fees are Deducted. Fund fees are not deducted from account values. Instead,
fees are deducted from the value of the fund shares on a daily basis, which in
turn will affect the value of each subaccount on a daily basis. Except as noted
below, the following figures are a percentage of the average net assets of each
fund, and are based on figures for the year ended December 31, 1999.
<TABLE>
<CAPTION>
Fund Expense Table
Total Fund Net Fund
Annual Annual
Expenses Expenses
Investment Without Total After
Advisory Other Waivers or Waivers and Waivers or
Fees(1) Expenses Reductions Reductions Reductions
------------------- ---------- ------------ ------------- -----------
<S> <C> <C> <C> <C> <C>
Aetna Ascent VP(2) 0.60% 0.14% 0.74% 0.00% 0.74%
Aetna Balanced VP, Inc. 0.50% 0.09% 0.59% -- 0.59%
Aetna Bond VP 0.40% 0.09% 0.49% -- 0.49%
Aetna Crossroads VP(2) 0.60% 0.14% 0.74% 0.04% 0.70%
Aetna Growth VP(2) 0.60% 0.11% 0.71% 0.00% 0.71%
Aetna Growth and Income VP 0.50% 0.08% 0.58% -- 0.58%
Aetna High Yield VP(2) 0.65% 0.48% 1.13% 0.33% 0.80%
Aetna Index Plus Large Cap VP(2) 0.35% 0.10% 0.45% 0.00% 0.45%
Aetna Index Plus Mid Cap VP(2) 0.40% 0.40% 0.80% 0.20% 0.60%
Aetna Index Plus Small Cap VP(2) 0.40% 0.50% 0.90% 0.30% 0.60%
Aetna International VP(2) 0.85% 0.77% 1.62% 0.47% 1.15%
Aetna Legacy VP(2) 0.60% 0.15% 0.75% 0.10% 0.65%
Aetna Money Market VP 0.25% 0.09% 0.34% -- 0.34%
Aetna Real Estate Securities VP(2) 0.75% 0.74% 1.49% 0.54% 0.95%
Aetna Small Company VP(2) 0.75% 0.13% 0.88% 0.00% 0.88%
Aetna Technology VP(2)(3) 0.95% 0.25% 1.20% 0.05% 1.15%
Aetna Value Opportunity VP(2) 0.60% 0.13% 0.73% 0.00% 0.73%
AIM V.I. Capital Appreciation Fund 0.62% 0.11% 0.73% -- 0.73%
AIM V.I. Growth Fund 0.63% 0.10% 0.73% -- 0.73%
AIM V.I. Growth and Income Fund 0.61% 0.16% 0.77% -- 0.77%
AIM V.I. Value Fund 0.61% 0.15% 0.76% -- 0.76%
Calvert Social Balanced Portfolio(4) 0.70% 0.19% 0.89% 0.00% 0.89%
DEM[Reg TM] Equity Fund (5) 0.90% 2.10% 3.00% 1.75% 1.25%
Fidelity VIP Equity-Income Portfolio(6) 0.48% 0.09% 0.57% -- 0.57%
Fidelity VIP Growth Portfolio(6) 0.58% 0.08% 0.66% -- 0.66%
Fidelity VIP Overseas Portfolio(6) 0.73% 0.18% 0.91% -- 0.91%
Fidelity VIP II Contrafund[Reg TM] Portfolio(6) 0.58% 0.09% 0.67% -- 0.67%
Janus Aspen Aggressive Growth Portfolio(7) 0.65% 0.02% 0.67% 0.00% 0.67%
Janus Aspen Balanced Portfolio(7) 0.65% 0.02% 0.67% 0.00% 0.67%
Janus Aspen Flexible Income Portfolio(7) 0.65% 0.07% 0.72% 0.00% 0.72%
Janus Aspen Growth Portfolio(7) 0.65% 0.02% 0.67% 0.00% 0.67%
Janus Aspen Worldwide Growth Portfolio(7) 0.65% 0.05% 0.70% 0.00% 0.70%
Janus Twenty Fund (8) 0.65% 0.23% 0.88% 0.00% 0.88%
Lexington Natural Resources Trust 1.00% 0.33% 1.33% -- 1.33%
Oppenheimer Global Securities Fund/VA 0.67% 0.02% 0.69% -- 0.69%
Oppenheimer Strategic Bond Fund/VA 0.74% 0.04% 0.78% -- 0.78%
PPI MFS Capital Opportunities Portfolio(9) 0.65% 0.25% 0.90% 0.00% 0.90%
PPI MFS Emerging Equities Portfolio(9) 0.67% 0.13% 0.80% 0.00% 0.80%
PPI MFS Research Growth Portfolio(9) 0.70% 0.15% 0.85% 0.00% 0.85%
PPI Scudder International Growth Portfolio(9) 0.80% 0.20% 1.00% 0.00% 1.00%
PPI T. Rowe Price Growth Equity Portfolio(9) 0.60% 0.15% 0.75% 0.00% 0.75%
</TABLE>
8
<PAGE>
Footnotes to the "Fund Expense Table"
(1) Certain of the fund advisers reimburse the company for administrative costs
incurred in connection with administering the funds as variable funding
options under the contract. These reimbursements are generally paid out of
the Investment Advisory Fees and are not charged to investors. For the AIM
Funds, the reimbursements may be paid out of fund assets in an amount up to
0.25% annually. Any such reimbursements paid from the AIM Funds' assets are
included in the "Other Expenses" column.
(2) The investment adviser is contractually obligated through December 31, 2000
to waive all or a portion of its investment advisory fee and/or its
administrative services fee and/or to reimburse a portion of other expenses
in order to ensure that the fund's "Total Fund Annual Expenses Without
Waivers or Reductions" do not exceed the percentage reflected under "Net
Fund Annual Expenses After Waivers or Reductions."
(3) Aetna Technology VP commenced operations on May 1, 2000. Amounts reflected
in "Other Expenses" and "Total Fund Annual Expenses Without Waivers or
Reductions" are estimated amounts for the current fiscal year based on
expenses for comparable funds. Actual expenses may vary from those shown.
(4) "Other Expenses" reflect an indirect fee of 0.03% relating to an expense
offset arrangement with the portfolio's custodian. The amount shown under
Total Waivers and Reductions does not reflect a voluntary reduction of
fees paid indirectly. If this voluntary reduction of fees paid indirectly
was reflected, the amount shown under Net Fund Annual Expenses After
Waiver or Reductions would be 0.86%.
(5) The amount shown under "Other Expenses" includes a fee paid to the fund's
distributor for stockholder servicing and distribution services at an annual
rate of up to a total of 0.25% of average daily net assets. The fund's
investment adviser has contractually agreed to limit the total annual
operating expenses of the fund, solely attributable to the Institutional
Shares, to 1.25% of average daily net assets effective March 17, 2000 until
at least December 31, 2009. However, there is no guarantee the fund's
investment adviser will contract to limit the total annual operating
expenses of the fund attributable to the Institutional Shares beyond
December 31, 2009.
(6) A portion of the brokerage commissions that certain funds pay was used to
reduce fund expenses. In addition, through arrangements with certain funds',
or the investment adviser on behalf of certain funds', custodian, credits
realized as a result of uninvested cash balances were used to reduce a
portion of each applicable fund's expenses. These credits are not included
under Total Waivers and Reductions. If these credits had been included, the
amounts shown under Net Fund Annual Expenses After Waivers or Reductions
presented in the table would have been 0.56% for Fidelity VIP Equity-Income
Portfolio; 0.65% for Fidelity VIP Growth Portfolio; 0.87% for Fidelity VIP
Overseas Portfolio; and 0.65% for Fidelity VIP II Contrafund(R) Portfolio.
(7) Expenses are based upon expenses for the fiscal year ended December 31,
1999, restated to reflect a reduction in the management fee for Aggressive
Growth, Balanced, Growth and Worldwide Growth Portfolios. All expenses are
shown without the effect of expense offset arrangements.
(8) Investment Advisory Fees information has been restated to reflect a new
fee schedule effective January 31, 2000. Other Expenses were determined
based on net assets as of the fiscal year ended October 31, 1999.
(9) The investment adviser has agreed to reimburse the portfolios for expenses
and/or waive its fees, so that, through at least April 30, 2001, the
aggregate of each portfolio's expenses will not exceed the combined
investment advisory fees and other expenses shown under the Net Fund Annual
Expenses After Waivers or Reductions column above.
9
<PAGE>
Hypothetical Examples
Account Fees Incurred Over Time. The following hypothetical examples show the
fees paid over time if $1,000 is invested in a subaccount, assuming a 5% annual
return on the investment. For the purpose of these examples, we deducted the
maximum allowed under the contract for the following fees: mortality and
expense risk charge of 1.50% annually, an administrative expense charge of
0.25% annually, and a maintenance fee of $30.00 (converted to a percentage of
assets equal to 0.039%). The total annual fund expenses used are those shown in
the column "Total Annual Expenses Without Waivers or Reductions" in the Fund
Expense Table.
<TABLE>
<CAPTION>
> These examples are purely hypothetical.
> They should not be considered a
representation of past or future fees or
expected returns.
> Actual fees and/or returns may be more or
less than those shown in these examples.
EXAMPLE A EXAMPLE B
--------------------------------------- --------------------------------------
If you leave your entire account
If you withdraw your entire account value invested or if you select an income
value at the end of the periods shown, phase payment option at the end of the
you would pay the following fees, periods shown, you would pay the
including any applicable early following fees (no early withdrawal
withdrawal charge assessed:* charge is reflected):**
1 year 3 years 5 years 10 years 1 year 3 years 5 years 10 years
-------- --------- --------- ---------- -------- --------- --------- ---------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Aetna Ascent VP $77 $133 $191 $286 $26 $ 79 $135 $286
Aetna Balanced VP, Inc. $75 $128 $184 $272 $24 $ 74 $127 $272
Aetna Bond VP $74 $125 $179 $261 $23 $ 71 $122 $261
Aetna Crossroads VP $77 $133 $191 $286 $26 $ 79 $135 $286
Aetna Growth VP $77 $132 $190 $283 $25 $ 78 $133 $283
Aetna Growth and Income VP $75 $128 $183 $271 $24 $ 74 $126 $271
Aetna High Yield VP $81 $144 $209 $324 $29 $ 90 $154 $324
Aetna Index Plus Large Cap VP $74 $124 $177 $257 $23 $ 70 $120 $257
Aetna Index Plus Mid Cap VP $77 $134 $194 $292 $26 $ 81 $137 $292
Aetna Index Plus Small Cap VP $78 $137 $198 $302 $27 $ 84 $142 $302
Aetna International VP $85 $157 $231 $369 $34 $105 $177 $369
Aetna Legacy VP $77 $133 $191 $287 $26 $ 79 $135 $287
Aetna Money Market VP $73 $121 $172 $246 $22 $ 67 $114 $246
Aetna Real Estate Securities VP $84 $154 $226 $358 $33 $101 $171 $358
Aetna Small Company VP $78 $136 $198 $300 $27 $ 83 $141 $300
Aetna Technology VP $81 $145 $212 $331 $30 $ 92 $157 $331
Aetna Value Opportunity VP $77 $132 $191 $285 $26 $ 78 $134 $285
AIM V.I. Capital Appreciation Fund $77 $132 $191 $285 $26 $ 78 $134 $285
AIM V.I. Growth Fund $77 $132 $191 $285 $26 $ 78 $134 $285
AIM V.I. Growth and Income Fund $77 $133 $192 $289 $26 $ 80 $136 $289
AIM V.I. Value Fund $77 $133 $192 $288 $26 $ 79 $135 $288
Calvert Social Balanced Portfolio $78 $137 $198 $301 $27 $ 83 $142 $301
DEM[Reg TM] Equity Fund $98 $194 $291 $484 $48 $144 $241 $484
Fidelity VIP Equity-Income Portfolio $75 $128 $183 $270 $24 $ 74 $126 $270
Fidelity VIP Growth Portfolio $76 $130 $187 $279 $25 $ 76 $131 $279
Fidelity VIP Overseas Portfolio $78 $137 $199 $303 $27 $ 84 $143 $303
Fidelity VIP II Contrafund[Reg TM] Portfolio $76 $131 $188 $280 $25 $ 77 $131 $280
Janus Aspen Aggressive Growth Portfolio $76 $131 $188 $280 $25 $ 77 $131 $280
Janus Aspen Balanced Portfolio $76 $131 $188 $280 $25 $ 77 $131 $280
Janus Aspen Flexible Income Portfolio $77 $132 $190 $284 $25 $ 78 $133 $284
Janus Aspen Growth Portfolio $76 $131 $188 $280 $25 $ 77 $131 $280
Janus Aspen Worldwide Growth Portfolio $76 $131 $189 $282 $25 $ 78 $133 $282
Janus Twenty Fund $78 $136 $198 $300 $27 $ 83 $141 $300
Lexington Natural Resources Trust $82 $149 $218 $343 $31 $ 96 $163 $343
Oppenheimer Global Securities Fund/VA $76 $131 $189 $282 $25 $ 77 $132 $282
Oppenheimer Strategic Bond Fund/VA $77 $134 $193 $290 $26 $ 80 $136 $290
PPI MFS Capital Opportunities Portfolio $78 $137 $198 $302 $27 $ 84 $142 $302
PPI MFS Emerging Equities Portfolio $77 $134 $194 $292 $26 $ 81 $137 $292
PPI MFS Research Growth Portfolio $78 $136 $196 $297 $27 $ 82 $140 $297
PPI Scudder International Growth Portfolio $79 $140 $203 $312 $28 $ 86 $147 $312
PPI T. Rowe Price Growth Equity Portfolio $77 $133 $191 $287 $26 $ 79 $135 $287
</TABLE>
- -----------------
* This example reflects deduction of an early withdrawal charge calculated
using Early Withdrawal Charge Schedule I (based on completed purchase
payment periods.) Schedule I is listed in "Fees." Under that schedule, if
only one $1,000 payment was made as described above, fewer than 5 purchase
payments would have been completed at the end of years 1, 3 and 5, and the
5% charge would apply. At the end of the tenth account year, the early
withdrawal charge is waived regardless of the number of purchase payment
periods completed, and no early withdrawal charge would apply.
** Example B will not apply if during the income phase a nonlifetime payment
option is elected with variable payments and a lump-sum payment is
requested within a certain number of years as specified in the contract. In
that case, the lump-sum payment is treated as a withdrawal during the
accumulation phase and may be subject to an early withdrawal charge. (Refer
to Example A.)
10
<PAGE>
Condensed Financial Information
- --------------------------------------------------------------------------------
Understanding Condensed Financial Information. In Appendix VI, we provide
condensed financial information about the Variable Annuity Account C (the
separate account) subaccounts available under the contracts. These tables show
the values of the subaccounts over the past 10 years. For subaccounts that were
not available 10 years ago, we give a history from the date of first
availability.
Investment Options
- --------------------------------------------------------------------------------
The contract offers variable investment options and fixed interest options.
When we establish your account(s), the contract holder, or you if permitted by
the plan, instructs us to direct account dollars to any of the available
options.
Variable Investment Options. These options are called subaccounts. The
subaccounts are within Variable Annuity Account C (the separate account), a
separate account of the Company. Earnings on amounts invested in a subaccount
will vary depending upon the performance and fees of its underlying fund. You
do not invest directly in or hold shares of the funds.
> Fund Descriptions. We provide brief descriptions of the funds in Appendix V.
Please refer to the fund prospectuses for additional information. Fund
prospectuses may be obtained, free of charge, from our Home Office at the
address and telephone number listed in "Contract Overview", by accessing the
SEC's web site or by contacting the SEC's Public Reference Room.
Fixed Interest Options. For descriptions of the fixed interest options, see
Appendices I, II and III and the Guaranteed Accumulation Account prospectus.
- --------------------------------------------------------------------------------
Selecting Investment Options
o Choose options appropriate for you. Your Aetna representative can help you
evaluate which subaccounts or fixed interest options may be appropriate for
your financial goals.
o Understand the risks associated with the options you choose. Some
subaccounts invest in funds that are considered riskier than others. Funds
with additional risks are expected to have a value that rises and falls
more rapidly and to a greater degree than other funds. For example, funds
investing in foreign or international securities are subject to additional
risks not associated with domestic investments, and their performance may
vary accordingly. Also, funds using derivatives in their investment
strategy may be subject to additional risks.
o Be informed. Read this prospectus, the fund prospectuses, fixed interest
option appendices and the Guaranteed Accumulation Account prospectus.
- --------------------------------------------------------------------------------
Limits on Option Availability. Some subaccounts and fixed interest options may
not be available through certain contracts and plans or in some states. We may
add, withdraw or substitute investment options subject to the conditions in the
contract and in compliance with regulatory requirements.
11
<PAGE>
Limits on Number of Options Selected. Generally, the contract holder, or you if
permitted by the plan, may select no more than 18 investment options at one
time during the accumulation phase of your account. If you have an outstanding
loan (403(b) and some 401 or 403(a) plans only), you may currently make a total
of 18 cumulative selections over the life of the account. Each subaccount, the
Fixed Account, Fixed Plus Account, and each classification of the Guaranteed
Accumulation Account selected counts toward these limits. If you have a loan on
the account, each option counts toward the limit, even after the full value is
transferred to other options.
Limits Imposed by the Underlying Fund. Orders for the purchase of fund shares
may be subject to acceptance by the fund. We reserve the right to reject,
without prior notice, any allocation of purchase payment to a subaccount if the
subaccount's investment in the corresponding fund is not accepted by the fund
for any reason.
Additional Risks of Investing in the Funds.
Variable Funds. (Mixed and Shared Funding) Most of the funds described in this
prospectus are available only to insurance companies for their variable
contracts. Such funds are often referred to as "variable funds," and are used
for "mixed" and "shared" funding.
"Mixed funding" occurs when shares of a fund, which the subaccounts buy for
variable annuity contracts, are bought for variable life insurance contracts
issued by us or other insurance companies.
"Shared funding" occurs when shares of a fund, which the subaccounts buy for
variable annuity contracts, are also bought by other insurance companies for
their variable annuity contracts.
> Mixed--bought for annuities and life insurance
> Shared--bought by more than one company
Public Funds. The following funds, which the subaccounts buy for variable
annuity contracts, are also available to the general public:
> DEM[Reg TM] Equity (Institutional Shares)
> Janus Twenty Fund
See "Taxation--403(b) Plans" for a discussion of investing in one of the public
funds under a 403(b) annuity contract.
Possible Conflicts of Interest. With respect to the variable funds and the
public funds, it is possible that a conflict of interest may arise due to mixed
and shared funding, a change in law affecting the operations of variable
annuity separate accounts, differences in the voting instructions of the
contract holder and others maintaining a voting interest in the funds, or some
other reason. Such a conflict could adversely impact the value of a fund. For
example, if a conflict of interest occurred and one of the subaccounts withdrew
its investment in a fund, the fund may be forced to sell its securities at
disadvantageous prices, causing its share value to decrease. Each variable
fund's board of directors or trustees will monitor events in order to identify
any conflicts which may arise and to determine what action, if any, should be
taken to address such conflicts. With respect to both the public funds and the
variable funds, in the event of a conflict, the Company will take any steps
necessary to protect contract holders and annuitants maintaining a voting
interest in the funds, including the withdrawal of Variable Annuity Account C
from participation in the funds which are involved in the conflict.
12
<PAGE>
Transfers
- --------------------------------------------------------------------------------
Transfers Among Investment Options. During the accumulation phase and under
some contracts, the income phase, the contract holder, or you if permitted by
the plan, may transfer amounts among investment options. Transfers from fixed
interest options are restricted as outlined in Appendices I, II and III.
Transfers may be requested in writing, by telephone or, where available,
electronically. Transfers must be made in accordance with the terms of the
contract.
Value of Transferred Dollars. The value of amounts transferred in or out of
subaccounts will be based on the subaccount unit values next determined after
we receive your request in good order at our Home Office, or if you are
participating in the dollar cost averaging program, after your scheduled
transfer.
Telephone and Electronic Transfers: Security Measures. To prevent fraudulent
use of telephone or electronic transactions (including, but not limited to,
internet transactions), we have established security procedures. These include
recording calls on our toll-free telephone lines and requiring use of a
personal identification number (PIN) to execute transactions. You are
responsible for keeping your PIN and account information confidential. If we
fail to follow reasonable security procedures, we may be liable for losses due
to unauthorized or fraudulent telephone or other electronic transactions. We
are not liable for losses resulting from following telephone or electronic
instructions we believe to be genuine. If a loss occurs when we rely on such
instructions, you will bear the loss.
Limits on Frequent Transfers. The contracts are not designed to serve as
vehicles for frequent trading in response to short-term fluctuations in the
market. Such frequent trading can disrupt management of a fund and raise its
expenses. This in turn can have an adverse effect on fund performance.
Accordingly, organizations or individuals that use market-timing investment
strategies and make frequent transfers should not purchase the contracts.
We reserve the right to restrict, in our sole discretion and without prior
notice, transfers initiated by a market-timing organization or individual or
other party authorized to give transfer instructions on behalf of multiple
contract holders or participants. Such restrictions could include:
(1) Not accepting transfer instructions from an agent acting on behalf of more
than one contract holder or participant; and
(2) Not accepting preauthorized transfer forms from market timers or other
entities acting on behalf of more than one contract holder or participant
at a time.
We further reserve the right to impose, without prior notice, restrictions on
any transfers that we determine, in our sole discretion, will disadvantage or
potentially hurt the rights or interests of other contract holders or
participants.
The Dollar Cost Averaging Program. Certain contracts allow you to participate
in our Dollar Cost Averaging Program. There is no additional charge for this
service. Dollar cost averaging is a system for investing that buys fixed dollar
amounts of an investment at regular intervals, regardless of price. Our program
transfers, at regular intervals, a fixed dollar amount to one or more
subaccounts that you select. Dollar cost averaging is not permitted into the
Lexington Natural Resources Trust subaccount. Dollar cost averaging neither
ensures a profit nor guarantees against loss in a declining market. You should
consider your financial ability to continue purchases through periods of low
price levels. For additional information about this program, contact your local
representative or call the Company at the number listed in "Contract
Overview--Questions."
13
<PAGE>
Contract Purchase and Participation
- --------------------------------------------------------------------------------
Contracts Available for Purchase. The contracts available for purchase are
group or individual deferred annuity contracts that the Company offers in
connection with plans established by eligible organizations under Tax Code
sections 401(a), 401(k), 403(a), 403(b) and 457.
ERISA Notification. Some plans under Sections 401, 403(a) and 403(b) are
subject to Title I of the Employee Retirement Income Security Act of 1974
(ERISA), as amended. The contract holder must notify the Company whether Title
I of ERISA applies to the plan.
Purchasing the Contract.
1. The contract holder submits the required forms and application to the
Company.
2. We approve the forms and issue a contract to the contract holder.
Participating in the Contract.
1. We provide you with enrollment materials for completion and return to us
(occasionally enrollment is conducted by someone unaffiliated with us who
is assisting the contract holder).
2. If your enrollment materials are complete and in good order, we establish
one or more accounts for you. Under certain plans we establish an employee
account for contributions from your salary and an employer account for
employer contributions.
Acceptance or Rejection. We must accept or reject an application or your
enrollment materials within two business days of receipt. If the forms are
incomplete, we may hold any forms and accompanying purchase payments for five
business days, unless you consent to our holding them longer. Under limited
circumstances, we may also agree, for a particular plan, to hold purchase
payments for longer periods with the permission of the contract holder. If we
agree to do this, we will deposit the purchase payments in the Aetna Money
Market VP subaccount until the forms are completed (or for a maximum of 105
days). If we reject the application or enrollment, we will return the forms and
any purchase payments.
14
<PAGE>
Methods of Purchase Payment. The contract may allow one or more of the
following purchase payment methods:
> Lump-sum payments--A one-time payment to your account in the form of a
transfer from a previous plan; and/or
> Installment payments--More than one payment made over time to your account.
The plan and the contract may have certain rules or restrictions that apply to
use of these two methods. For example, we may require that installment payments
meet certain minimums. Under some contracts, we will place the different types
of payments in distinct accounts, where each account will have its own early
withdrawal charge schedule. See "Fees--Early Withdrawal Charge Schedules."
Allocation of Purchase Payments. The contract holder or you, if the contract
holder permits, directs us to allocate initial contributions to the investment
options available under the plan. Generally, you will specify this information
on your enrollment materials. After your enrollment, changes to allocations for
future purchase payments or transfer of existing balances among investment
options may be requested in writing and, where available, by telephone or
electronically. Allocations must be in whole percentages, and there may be
limitations on the number of investment options that can be selected. See
"Investment Options" and "Transfers."
Transfer Credits. The Company provides a transfer credit in some cases on
transferred assets, as defined by the Company, subject to certain conditions
and state approvals. This benefit is provided on a nondiscriminatory basis. If
a transfer credit is due under the contract, you will be provided with
additional information specific to the contract.
Tax Code Restrictions. The Tax Code places some limitations on contributions to
your account. See "Taxation."
Contract Ownership and Rights
- --------------------------------------------------------------------------------
Who Owns the Contract? The contract holder. This is the person or entity to
whom we issue the contract.
Who Owns Money Accumulated Under the Contract?
> Under 457 Plans. The Tax Code requires that 457 plan assets of governmental
employers be held in trust for the exclusive benefit of you and your
beneficiaries. An annuity contract satisfies the trust requirement of the Tax
Code.
> Under 403(b) Plans. Under the contract, we may establish one or more accounts
for you. Generally, we establish an employee account to receive salary
reduction and rollover amounts and an employer account to receive employer
contributions. You have the right to the value of your employee account and
any employer account to the extent you are vested as interpreted by the
contract holder.
15
<PAGE>
> Under 401(a)/401(k) or 403(a) Plans. Under the contract, we may establish one
or more accounts for you. Generally, we establish an employee account to
receive salary reduction and rollover amounts and an employer account to
receive employer contributions. You have the right to the value of your
employee account and any employer account to the extent that you are vested
under the plan as interpreted by the contract holder.
Who Holds Rights under the Contract?
> Under all contracts, except group contracts issued through a voluntary 403(b)
plan, the contract holder holds all rights under the contract. The contract
holder may permit you to exercise some of those rights. For example, the
contract holder may allow you to choose investment options.
> If you participate in a group or individual contract through a voluntary
403(b) plan, you hold all rights under the contract.
Right to Cancel
- --------------------------------------------------------------------------------
When and How to Cancel. If the contract holder chooses to cancel a contract, we
must receive the contract and a written notice of cancellation within 10 days
(or a longer period if required by state law) after the contract holder's
receipt of the contract.
If you wish to cancel participation in the contract and are allowed to do so
under the contract and the plan, you must send the document evidencing your
participation and a written notice of cancellation to the Company within 10
days after you receive confirmation of your participation in the contract.
Refunds. We will produce a refund not later than seven days after we receive
the required documents and written notice in good order at our Home Office. The
refund will equal amounts contributed to the contract or account(s), as
applicable, plus any earnings or less any losses attributable to the investment
options in which amounts were invested. In certain states, we are required to
refund contributions. When a refund of contributions is not required, the
investor bears any investment risk.
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<PAGE>
Fees
- --------------------------------------------------------------------------------
The following repeats and adds to information provided in the "Fee Table"
section. Please review both this section and the "Fee Table" section for
information on fees.
I. Transaction Fees
Early Withdrawal Charge
Withdrawals of all or a portion of your account value may be subject to a
charge.
Purpose: This is a deferred sales charge. It reimburses us for some of the
sales and administrative expenses associated with the contract. If our expenses
are greater than the amount we collect for the early withdrawal charge, we may
use any of our corporate assets, including potential profit that may arise from
the mortality and expense risk charges, to make up the difference.
Amount: This charge is a percentage of the amount that you withdraw from the
subaccounts, the Fixed Account and the Guaranteed Accumulation Account. We do
not deduct an early withdrawal charge from amounts that you withdraw from the
Fixed Plus Account. The percentage is determined by the early withdrawal charge
schedule that applies to your account. Some of these schedules are listed
below. The charge will never be more than 8.5% of your total purchase payments
to the account, or under some contracts, the maximum permitted by the rules of
the National Association of Securities Dealers.
Early Withdrawal Charge Schedules. You may determine which schedule applies to
you by consulting your certificate or the contract (held by the contract
holder).
Schedule I. This is the maximum early withdrawal charge schedule under the
contracts. It grades down to zero over a 10-year period, as shown below. Some
contracts have schedules that grade down to zero over fewer than 10 years.
Each contract will specify whether a schedule is based on one of the following:
(1) The number of years since the account was established; (2) the number of
years since the contract was established; or (3) the number of completed
purchase payment periods.
Unless the contract provides otherwise, the same schedule applies to
installment purchase payments (ongoing contributions) and to single purchase
payments (rollovers, exchanges or other one-time contributions).
Schedule I
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------
Purchase Payment or Contribution
Periods or, Contract Years or Account
Years Completed (depending upon
the contract) Early Withdrawal Charge
- --------------------------------------------- ------------------------
<S> <C>
Fewer than 5 5%
5 or more but fewer than 7 4%
7 or more but fewer than 9 3%
9 or more but fewer than 10 2%
more than 10 0%
- --------------------------------------------------------------------------------
</TABLE>
Types of Fees
There are three types of fees which you may incur under the contract:
> Transaction Fees
o Early Withdrawal Charge
o Annual Maintenance Fee
> Fees Deducted from the Subaccounts
o Mortality and Expense Risk Charge
o Administrative Expense Charge
> Fees Deducted by the Funds
o Investment Advisory Fees
o Other Expenses
Terms to Understand in
Schedules I and II
> Account Year--a 12-month period measured from the date we establish your
account, or measured from any anniversary of that date.
> Contract Year--a 12-month period measured from the date we establish the
contract, or measured from any anniversary of that date.
> Purchase Payment Period (also called Contribution Period under some
contracts) (for installment payments under some contracts)--the period of
time it takes to complete the number of installment payments expected to be
made to your account over a year. For example, if your payment frequency is
monthly, a payment period is completed after 12 payments are made. If only 11
payments are made, the payment period is not completed until the twelfth
payment is made. At any given time, the number of payment periods completed
cannot exceed the number of account years completed, regardless of the number
of payments made.
17
<PAGE>
Schedule II. For contracts where we establish distinct accounts for installment
purchase payments and single purchase payments (defined above), Schedule I
applies to installment payment accounts and Schedule II applies to single
payment accounts. As shown below, Schedule II grades down to zero over a
nine-year period as account years are completed.
Schedule II
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------
Account Years Completed Early Withdrawal Charge
- --------------------------------------- ------------------------
<S> <C>
Fewer than 5 5%
5 or more but fewer than 6 4%
6 or more but fewer than 7 3%
7 or more but fewer than 8 2%
8 or more but fewer than 9 1%
9 or more 0%
- --------------------------------------------------------------------------------
</TABLE>
Early Withdrawal Charge Waivers under all Contracts. These apply to all
contracts. Also read the following two subsections regarding additional
waivers, reduction or elimination of the charge.
This charge is waived for portions of a withdrawal that are:
> Used to provide income payments during the income phase;
> Paid because of your death before income payments begin;
> Paid where your account value is $5,000 or less ($3,500 under some contracts
and $1,999 for some contracts issued in New York), (or, if applicable, as
otherwise allowed by the plan for lump-sum cashout without participant's
consent) and no part of the account has been taken as a withdrawal, used to
provide income payments or taken as a loan within the prior 12 months;
> Taken because of the election of a systematic distribution option. See
"Systematic Distribution Options"; or
> Taken on or after the tenth anniversary of the effective date of the account.
Early Withdrawal Charge Waivers under Certain Contracts. To find out which
waivers apply to the contract issued in connection with your plan, consult the
certificate or the contract (held by the contract holder).
This charge is waived for portions of a withdrawal that are:
> Taken under accounts with an early withdrawal charge schedule based on
completed purchase payment periods when you are at least age 59 1/2 and have
completed at least nine purchase payment periods;
> Taken after you have separated from service with your employer (under
certain contracts, the employer must provide documentation of separation to
the Company);
> Used to purchase an Aetna single premium immediate annuity or other contracts
allowed by the Company, under the condition that you do not cancel the new
contract and obtain a refund during the cancellation period (if you cancel
the new contract, we will reinstate the account under the old contract and
the amount returned to the account from the new contract may then be
withdrawn, subject to any early withdrawal charge that would have applied at
the time the new contract was established);
> Depending upon the plan, due to financial hardship or hardship resulting from
an unforeseeable emergency, as defined by the Tax Code and
18
<PAGE>
regulations thereunder or an in-service distribution permitted by the plan
when certified by the employer;
> From contracts used with plans under section 401(a)/401(k), section 403(a) or
section 403(b) of the Tax Code, if the withdrawal is not more than 10% of
your account value and is the first partial withdrawal in a calendar year (to
qualify for this waiver you must be between the ages of 59 1/2 and 70 1/2 and
cannot have elected the systematic withdrawal option; any outstanding loans
are not included in the account value when calculating the 10% amount; and
this waiver does not apply to full withdrawals or to a withdrawal due to a
loan default);
> Withdrawn due to the transfer of your account value to another of the
retirement products the Company offers under the contract holder's plan,
subject to various conditions agreed to by the contract holder and the
Company in writing;
> Made because the Company terminated the account under the circumstances
described in "Other Topics--Account Termination"; or
> Withdrawn for a transfer as provided under Internal Revenue Service Ruling
90-24 to a Code section 403(b)(7) custodial account sponsored by the Company.
Reduction, Waiver or Elimination. In addition to the specific waivers described
above, we may reduce, waive or eliminate the early withdrawal charge for a
particular plan. Any such reduction will reflect the differences we expect in
distribution costs or services meant to be defrayed by this charge. Factors we
consider for a reduction include, but are not limited to, the following:
> The number of participants under the plan;
> The expected level of assets or cash flow under the plan;
> Our agent's involvement in sales activities;
> Our sales-related expenses;
> Distribution provisions under the plan;
> The plan's purchase of one or more other variable annuity contracts from us
and the features of those contracts;
> The level of employer involvement in determining eligibility for
distributions under the contract;
> Our assessment of financial risk to the Company relating to withdrawals; and
> Whether the contract results from the exchange of another contract issued by
the Company to the same plan sponsor.
We will not reduce the early withdrawal charge in a manner that is unfairly
discriminatory against any person.
We may also apply different early withdrawal charge provisions in contracts
issued to certain employer groups or associations which have negotiated the
contract terms on behalf of their employees. We will offer any resulting early
withdrawal charge uniformly to all employees in the group.
19
<PAGE>
Reduction for Certain New York Contracts. For master 403(b) plan contracts
issued after July 29, 1993 in New York, in addition to waivers or reductions
that we grant, the state of New York requires a reduced early withdrawal charge
schedule for withdrawals from the Guaranteed Accumulation Account. The schedule
grades down over a seven-year period as account years are completed, as shown
in the table below. This same schedule is used for withdrawals from the
subaccounts, Fixed Account or the Guaranteed Accumulation Account for contracts
issued in New York on or after March 7, 2000 under contract form G-CDA-99(NY).
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------
Completed Account Years Early Withdrawal Charge
- --------------------------------------- ------------------------
<S> <C>
Fewer than 3 5%
3 or more but fewer than 4 4%
4 or more but fewer than 5 3%
5 or more but fewer than 6 2%
6 or more but fewer than 7 1%
7 or more 0%
- --------------------------------------------------------------------------------
</TABLE>
Maintenance Fee
Maximum Amount. $30.00
When/How. For those plans that have a maintenance fee, each year during the
accumulation phase we deduct this fee on your account anniversary and, in some
cases, at the time of full withdrawal. It is deducted on a pro rata basis from
your account value invested in the subaccounts and the fixed interest options.
We do not deduct this fee from a single purchase payment account. Under some
plans we deduct the maintenance fee from both employer and employee accounts.
Under some installment plans, your employer elects whether the fee is deducted
from the employee account, employer account, or a portion from each. The
Company may send a bill to your employer at or prior to such deduction.
Purpose. This fee helps defray the administrative expenses we incur in
establishing and maintaining your account.
Reduction or elimination. When a plan meets certain criteria, we may reduce,
waive or eliminate the maintenance fee. Factors we consider reflect differences
in our level of administrative costs and services, such as:
> The size, type and nature of the group to which a contract is issued;
> The expected level of assets under the plan (under some contracts, we may
aggregate accounts under different contracts issued by the Company to the
same contract holder);
> The anticipated level of administrative expenses, such as billing for
payments, producing periodic reports, providing for the direct payment of
account charges rather than having them deducted from account values, and any
other factors pertaining to the level and expense of administrative services
we will provide; and
> The number of eligible participants and the program's participation rate.
Due to factors on which the maintenance fee is based, it is possible that it
may increase or decrease from year to year as the characteristics of the group
changes.
We will not unfairly discriminate against any group if we reduce or eliminate
the maintenance fee. We will make any reduction according to our own rules in
effect at the time we approve the application for a contract. We reserve the
right to change these rules from time to time.
20
<PAGE>
II. Fees Deducted from the Subaccounts
Mortality and Expense Risk Charge
Maximum Amount. 1.50% annually of your account value invested in the
subaccounts during the accumulation phase; 1.25% annually of your account value
invested in the subaccount during the income phase. We may charge a different
fee for different funds (but not beyond the maximum amount). See your
certificate or the contract (held by the contract holder).
When/How. This fee is deducted daily from the subaccounts. We do not deduct
this from any fixed interest option.
Purpose. This fee compensates us for the mortality and expense risks we assume
under the contracts.
> The mortality risks are those risks associated with our promise to make
lifetime payments based on annuity rates specified in the contracts and our
funding of the death benefits and other payments we make to owners or
beneficiaries of the accounts.
> The expense risk is the risk that the actual expenses we incur under the
contracts will exceed the maximum costs that we can charge.
If the amount we deduct for this fee is not enough to cover our mortality costs
and expenses under the contracts, we will bear the loss. We may use any excess
to recover distribution costs relating to the contract and as a source of
profit. We expect to make a profit from this fee.
Reduction. We may reduce the mortality and expense risk charge from the maximum
when the plan meets certain criteria and we agree to the reduction with the
contract holder in writing. Some contracts have a reduced mortality and expense
risk charge only during the accumulation phase of the account which then
increases during the income phase (but not beyond the maximum amount). Any
reduction will reflect differences in expenses for administration based on such
factors as:
> The expected level of assets under the plan (under some contracts, we may
aggregate accounts under different contracts issued by the Company to the
same contract holder);
> The size of the prospective group, projected annual number of eligible
participants and the program's participation rate;
> The plan design (for example, the plan may favor stability of invested assets
and limit the conditions for withdrawals, loans and available investment
options, which in turn lowers administrative expenses);
> The frequency, consistency and method of submitting payments and loan
repayments;
> The method and extent of onsite services we provide and the contract holder's
involvement in services such as enrollment and ongoing participant services;
> The contract holder's support and involvement in the communication,
enrollment, participant education and other administrative services;
> The projected frequency of distributions; and
> The type and level of other factors that affect the overall administrative
expense.
21
<PAGE>
We will determine any reduction of mortality and expense risk on a basis that
is not unfairly discriminatory according to our rules in effect at the time a
contract application is approved. We reserve the right to change these rules
from time to time. Under some contracts we will reassess and increase or
decrease this fee each year on the anniversary of the date the contract was
established. However, the charge that may apply to a given participant upon
entry into the income phase will remain fixed while the participant remains in
that phase.
Administrative Expense Charge
Maximum Amount. 0.25% annually of your account value invested in the
subaccounts.
When/How. For all participants who became covered under a contract on or after
November 5, 1984, we reserve the right to charge an administrative expense
charge of up to 0.25% annually of your account value invested in the
subaccount. We are currently deducting this charge under the contracts issued
to some plans. If charged, this fee is deducted daily from the subaccounts. We
do not deduct this from any fixed interest option. This fee may be assessed
during the accumulation phase and/or the income phase. If we are currently
imposing this fee under the contract issued in connection with your plan when
you enter the income phase, the fee will apply to you during the entire income
phase.
Purpose. This fee helps defray our administrative expenses that cannot be
covered by the mortality and expense charge described above. The fee is not
intended to exceed our average expected cost of administering the contracts. We
do not expect to make a profit from this fee.
Reduction. Under some contracts, if we charge the administrative expense
charge, we may reduce it from the maximum when the plan meets certain criteria
and we agree to the reduction with the contract holder, in writing. The level
of the fee may be reassessed and increased or decreased at each contract
anniversary as the characteristics of the group change.
III. Fund Expenses
Maximum Amount. Each fund determines its own advisory fees and expenses. For a
list of fund fees see "Fee Table." The fees are described in more detail in
each fund prospectus.
When/How. Fund fees are not deducted from your account. Fund advisory fees and
expenses are reflected in the daily value of the fund shares which will, in
turn, affect the daily value of each subaccount.
Purpose. These amounts help to pay the fund's investment advisor and operating
expenses.
IV. Premium and Other Taxes
Maximum Amount. Some states and municipalities charge a premium tax on
annuities. These taxes currently range from 0% to 4%, depending upon the
jurisdiction.
When/How. We reserve the right to deduct premium taxes from your account value
or from payments to the account at any time, but not before there is a tax
liability under state law. Our current practice is to deduct premium taxes at
the time of a full withdrawal or the commencement of income phase payments.
22
<PAGE>
We will not deduct any municipal premium tax of 1% or less, but we reserve the
right to reflect such an expense in our annuity purchase rates.
In addition, the Company reserves the right to assess a charge for any federal
taxes due against the separate account. See "Taxation."
Your Account Value
- --------------------------------------------------------------------------------
During the accumulation phase, your account value at any given time equals:
> Account dollars directed to the fixed interest options, including interest
earnings to date
> Less any deductions from the fixed interest options (e.g. withdrawals, fees)
> Plus the current dollar value of amounts invested in the subaccounts.
Subaccount Accumulation Units. When a fund is selected as an investment option,
your account dollars invest in "accumulation units" of the Variable Annuity
Account C subaccount corresponding to that fund. The subaccount invests
directly in the fund shares. The value of your interests in a subaccount is
expressed as the number of accumulation units you hold multiplied by an
"Accumulation Unit Value," as described below, for each unit.
Accumulation Unit Value (AUV). The value of each accumulation unit in a
subaccount is called the accumulation unit value or AUV. The value of
accumulation units vary daily in relation to the underlying fund's investment
performance. The value also reflects deductions for fund fees and expenses, the
mortality and expense risk charge, and the administrative expense charge (if
any). We discuss these deductions in more detail in "Fee Table" and "Fees."
Valuation. We determine the AUV every business day after the close of the New
York Stock Exchange (Exchange). At that time, we calculate the current AUV by
multiplying the AUV last calculated by the "net investment factor" of the
subaccount. The net investment factor measures the investment performance of
the subaccount from one valuation to the next.
Current AUV = Prior AUV x Net Investment Factor
Net Investment Factor. The net investment factor for a subaccount between two
consecutive valuations equals the sum of 1.0000 plus the net investment rate.
Net Investment Rate. The net investment rate is computed according to a formula
that is equivalent to the following:
> The net assets of the fund held by the subaccount as of the current
valuation, minus
> The net assets of the fund held by the subaccount at the preceding valuation,
plus or minus
> Taxes or provisions for taxes, if any, due to subaccount operations (with any
federal income tax liability offset by foreign tax credits to the extent
allowed)
> Divided by the total value of the subaccount's units at the preceding
valuation
> Minus a daily deduction for the mortality and expense risk charge, the
administrative expense charge, if any, and any other fees deducted from
investments in the separate account (such as guaranty charges for the Aetna
GET Fund). See "Fees."
The net investment rate may be either positive or negative.
23
<PAGE>
Hypothetical Illustration. As a hypothetical illustration, assume that an
investor contributes $5,000 to his account and directs us to invest $3,000 in
Fund A and $2,000 in Fund B. After receiving the contribution and following the
next close of business of the New York Stock Exchange, the applicable AUV's are
$10 for Subaccount A, and $25 for Subaccount B. The investor's account is
credited with 300 accumulation units of subaccount A, and 80 accumulation units
of subaccount B.
Step 1: An investor contributes $5,000.
---------------------
$5,000 contribution
---------------------
Step 1
---------------------------------------------------
Aetna Life Insurance and Annuity Company
---------------------------------------------------
Step 2
---------------------------------------------------
Variable Annuity Account C
---------------------------------------------------
Subaccount A Subaccount B Etc
300 80
accumulation accumulation
units units
---------------------------------------------------
Step 3
---------- -----------
Fund A Fund B
---------- -----------
Step 2:
A. He directs us to invest $3,000
in Fund A. His dollars purchase
300 accumulation units of
Subaccount A ($3,000 divided by
the current
$10 AUV).
B. He directs us to invest $2,000
in Fund B. His dollars purchase
80 accumulation units of
Subaccount B ($2,000 divided by
the current
$25 AUV).
Step 3: The separate account then
purchases shares of the applicable
funds at the current market value
(net asset value or NAV).
The fund's subsequent investment performance, expenses and charges, and the
daily charges deducted from the subaccount, will cause the AUV to move up or
down on a daily basis.
24
<PAGE>
Purchase Payments to Your Account. If all or a portion of initial purchase
payments are directed to the subaccounts, they will purchase subaccount
accumulation units at the AUV next computed after our acceptance of the
applicable application or enrollment forms, as described in "Contract Purchase
and Participation." Subsequent purchase payments or transfers directed to the
subaccounts that we receive in good order by the close of business of the New
York Stock Exchange will purchase subaccount accumulation units at the AUV
computed after the close of the Exchange on that day. The value of subaccounts
may vary day to day.
Withdrawals
- --------------------------------------------------------------------------------
Making a Withdrawal. Subject to limitations on withdrawals from the fixed
interest options and other restrictions (see "Withdrawal Restrictions" below),
the contract holder, or you if permitted by the plan, may withdraw all or a
portion of your account value at any time during the accumulation phase.
Steps for Making a Withdrawal. The contract holder, or you if permitted by the
plan, must:
> Select the withdrawal amount
o Full Withdrawal: You will receive, reduced by any required withholding
tax, your account value allocated to the subaccounts, the Guaranteed
Accumulation Account (plus or minus any applicable market value
adjustment) and the Fixed Account, minus any applicable early withdrawal
charge, plus the amount available for withdrawal from the Fixed Plus
Account.
o Partial Withdrawal (Percentage or Specified Dollar Amount): You will
receive, reduced by any required withholding tax, the amount you specify,
subject to the value available in your account. However, the amount
actually withdrawn from your account will be adjusted by any applicable
early withdrawal charge for amounts withdrawn from the subaccounts, the
Guaranteed Accumulation Account or the Fixed Account, and any positive or
negative market value adjustments for amounts withdrawn from the
Guaranteed Accumulation Account. The amount available from the Fixed Plus
Account may be limited.
For a description of limitations on withdrawals from the Fixed Plus
Account, see Appendix III.
> Select investment options. If this is not specified, we will withdraw dollars
proportionally from each investment option in which you have an account
value.
> Properly complete a disbursement form and submit it to the Home Office.
Calculation of Your Withdrawal. We determine your account value every normal
business day after the close of the New York Stock Exchange. We pay withdrawal
amounts based on your account value either:
(1) As of the next valuation after we receive a request for withdrawal in good
order at our Home Office, or
(2) On such later date as specified on the disbursement form.
Delivery of Payment. Payments for withdrawal requests will be made in
accordance with SEC requirements. Normally, we will send your payment not later
than seven calendar days following our receipt of your disbursement form in
good order.
Taxes, Fees and Deductions
Amounts withdrawn may be subject to one or more of the following:
> Early Withdrawal Charge. See "Fees--Early Withdrawal Charge";
> Maintenance Fee. See "Fees--Maintenance Fee";
> Market Value Adjustment. See Appendix I;
> Tax Penalty. See "Taxation"; and/or
> Tax Withholding. See "Taxation".
To determine which may apply, refer to the appropriate sections of this
prospectus, contact your Aetna representative or call the Company at the number
listed in "Contract Overview--Questions."
25
<PAGE>
Reinvestment Privilege. (not applicable to contracts under 457 plans). Some
contracts allow one-time use of a reinvestment privilege. Within 30 days after
a full withdrawal, if allowed by law and the contract, you may elect to
reinvest all or a portion of the proceeds. We must receive reinvested amounts
within 60 days of the withdrawal. We will credit the account for the amount
reinvested based on the subaccount values next computed following our receipt
of your request and the amount to be reinvested. We will credit the amount
reinvested proportionally for maintenance fees and early withdrawal charges
imposed at the time of withdrawal. We will deduct from the amounts reinvested
any maintenance fee which fell due after the withdrawal and before the
reinvestment. We will reinvest in the same investment options and proportions
in place at the time of withdrawal. If you withdraw amounts from a series of
the Aetna GET Fund and then elect to reinvest them, we will reinvest them in a
GET Fund series that is then accepting deposits, if one is available. If one is
not available, we will reallocate your GET amounts among other investment
options in which you invested, on a pro rata basis. Special rules apply to
reinvestments of amounts withdrawn from the Guaranteed Accumulation Account.
See Appendix I. Seek competent advice regarding the tax consequences associated
with reinvestment.
Withdrawal Restrictions. Some plans may have other limits on withdrawals, other
than or in addition to those listed below.
> Section 403(b)(11) of the Tax Code generally prohibits withdrawal under
403(b) contracts prior to your death, disability, attainment of age 59 1/2,
separation from service, or financial hardship of the following:
(1) Salary reduction contributions made after December 31, 1988; and
(2) Earnings on those contributions and earnings on amounts held before
1989 and credited after December 31, 1988.
> 401(k) plans generally prohibit withdrawal of salary reduction contributions
and associated earnings prior to your death, disability, attainment of age
59 1/2, separation from service, or financial hardship. Income attributable
to salary reduction contributions and credited on or after January 1, 1989
may not be distributed in the case of hardship.
> The contract may require that the contract holder certify that you are
eligible for the distribution.
> If you are married and covered by an ERISA plan, the contract holder must
provide certification that Retirement Equity Act requirements have been met.
> Participants in Ball State University Alternate Pension Plan--The portion of
your account value attributable to employer contributions and applicable
earnings may not be withdrawn unless your employment is terminated with Ball
State University or you have died, retired or separated from service. The
contract holder may withdraw the employer account value, and you may transfer
employer account values pursuant to an IRS Revenue Ruling 90-24 transfer,
without regard to this restriction. No early withdrawal charge will apply to
the first 20% of the employer account value transferred via a 90-24 transfer
in a calendar year. This waiver does not apply to a 90-24 transfer of the
full employer account value.
> Participants in Texas Optional Retirement Program--You may not receive any
distribution before retirement, except upon becoming disabled, as defined in
the Tax Code or terminating employment with Texas public institutions of
higher learning. Conditions under which you may exercise the right to
withdraw and the right to advance the date on which an income phase payment
option is to begin are limited. These restrictions are imposed by
reason of the Texas Attorney General's interpretation of Texas law.
26
<PAGE>
Loans
- --------------------------------------------------------------------------------
Availability. If allowed by the contract and the plan, you may take out a loan
from your account value during the accumulation phase. Some contracts restrict
loans from your employer account. Loans are only allowed from amounts allocated
to certain subaccounts and fixed interest options. Additional restrictions may
apply under the Tax Code or due to our administrative practices.
Requests. If you are eligible to obtain a loan, you may request one by properly
completing the loan request form and submitting it to our Home Office. Read the
terms of the loan agreement before submitting any request.
Systematic Distribution Options
- --------------------------------------------------------------------------------
Availability of Systematic Distribution Options. To exercise one of these
options, the account value must meet any minimum dollar amount and age criteria
applicable to that option. To determine what Systematic Distribution Options
are available, check with the contract holder or the Company. The Company
reserves the right to discontinue the availability of one or all of the
Systematic Distribution Options at any time, and/or to change the terms for
future elections.
Systematic Distribution Options currently available under the contract include
the following:
> SWO--Systematic Withdrawal Option. SWO is a series of partial withdrawals
from your account based on a payment method you select. It is designed for
those who want a periodic income while retaining accumulation phase
investment flexibility for amounts accumulated under the account. (This
option may not be available if you have an outstanding loan.)
> ECO--Estate Conservation Option. ECO also allows you to maintain the account
in the accumulation phase and provides periodic payments designed to meet the
Tax Code's minimum distribution requirement.
Under ECO, the Company calculates the minimum distribution amount required
by law at age 70 1/2 (for certain plans, 70 1/2 or retirement, if later) and
pays you that amount once a year.
For certain contracts issued in the state of New York, no market value
adjustment is imposed on ECO withdrawals from the Guaranteed Accumulation
Account.
> Other Systematic Distribution Options. Other Systematic Distribution Options
may be available from time to time. Additional information relating to any of
the Systematic Distribution Options may be obtained from your local
representative or from the Company's Home Office.
Electing a Systematic Distribution Option. The contract holder, or you if
permitted by the plan, makes the election of a Systematic Distribution Option.
For some contracts, the contract holder must provide the Company with
certification that the distribution is in accordance with the terms of the
plan.
Features of a Systematic Distribution Option
If available under your plan, a Systematic Distribution Option allows you to
receive regular payments from your account without moving into the income
phase. By remaining in the accumulation phase, you retain certain rights and
investment flexibility not available during the income phase. Because the
account remains in the accumulation phase, all accumulation phase charges
continue to apply.
27
<PAGE>
During the Income Phase
This section provides information about the accumulation phase. For death
benefit information applicable to the income phase, see "The Income Phase."
Terminating a Systematic Distribution Option. Once you elect a Systematic
Distribution Option, except for accounts that are part of 457 plan contracts,
you may revoke it at any time through a written request to our Home Office.
Once revoked, an option may not be elected again, nor may any other Systematic
Distribution Option be elected, unless the Tax Code permits it.
Tax Consequences. Withdrawals received through these options and revocations of
elections may have tax consequences. See "Taxation."
Death Benefit
- --------------------------------------------------------------------------------
The contract provides a death benefit in the event of your death, which is
payable to the beneficiary named under the contract (contract beneficiary).
> Under contracts issued in connection with most types of plans except
voluntary 403(b) plans, the contract holder must be named as the contract
beneficiary, but may direct that we make any payments to the beneficiary you
name under the plan (plan beneficiary).
> Under contracts issued in connection with voluntary 403(b) plans, you may
generally designate your own contract beneficiary who will normally be your
plan beneficiary, as well.
During the Accumulation Phase
Payment Process
1. Following your death, the contract beneficiary (on behalf of the plan
beneficiary, if applicable) must provide the Company with proof of death
acceptable to us and a payment request in good order.
2. The payment request should include selection of a benefit payment option.
3. Within seven days after we receive proof of death acceptable to us and
payment request in good order at our Home Office, we will mail payment,
unless otherwise requested.
Until a payment option is selected, account dollars will remain invested as at
the time of your death, and no distributions will be made.
Benefit Payment Options. The following payment options are available, if
allowed by the Tax Code:
> Lump-sum payment;
> Payment under an available income phase payment option (see "The Income
Phase--Payment Options"); and
> If the contract beneficiary or plan beneficiary is your spouse, payment under
an available Systematic Distribution Option (may not be available under all
plans). See "Systematic Distribution Options."
The following options are also available under some contracts, however, the Tax
Code limits how long the death benefit proceeds may be left in these options:
> Leaving the account value invested in the contract; and
> Under some contracts, leaving your account value on deposit in the Company's
general account and receiving monthly, quarterly, semi-annual or annual
interest payments at the interest rate currently credited on such
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<PAGE>
deposits. The balance on deposit can be withdrawn at any time or paid in
accordance with any of the available income phase payment options. See The
Income Phase--Payment Options".
Death Benefit Calculation. For most contracts, the death benefit will be based
on your account value. For amounts held in the Guaranteed Accumulation Account
(GAA), any positive aggregate market value adjustment (the sum of all market
value adjustments calculated due to a withdrawal) will be included in your
account value. If a negative market value adjustment applies, it would be
deducted only if the death benefit is withdrawn more than six months after your
death. We describe the market value adjustment in Appendix I and in the GAA
prospectus.
The death benefit is calculated as of the next time we value your account
following the date on which we receive proof of death and payment request in
good order. In addition to this amount, some states require we pay interest
calculated from date of death at a rate specified by state law.
Some contracts provide a guaranteed death benefit if the contract beneficiary
(on behalf of the plan beneficiary, if applicable) elects a lump-sum
distribution or an income phase payment option within six months of your death.
For those contracts, the guaranteed death benefit is the greater of:
(a) Your account value on the day that notice of death and request for payment
are received in good order at our Home Office, plus any positive aggregate
market value adjustment that applies to amounts allocated to the GAA; or
(b) The sum of payments (minus any applicable premium tax) made to your
account, minus withdrawals made from your account and any outstanding loan
amount.
Tax Code Requirements. The Tax Code requires distribution of death benefit
proceeds within a certain period of time. Failure to begin receiving death
benefit payments within those time periods can result in tax penalties.
Regardless of the method of payment, death benefit proceeds will generally be
taxed to the beneficiary in the same manner as if you had received those
payments. See "Taxation" for additional information.
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<PAGE>
We may have used the following terms in prior prospectuses:
Annuity Phase--Income Phase
Annuity Option--Income Phase Payment Option
Annuity Payment--Income Phase Payment
Annuitization--Initiating Income Phase Payments
The Income Phase
- --------------------------------------------------------------------------------
During the income phase, you receive payments from your accumulated account
value.
Initiating Income Phase Payments. At least 30 days prior to the date you want
to start receiving income phase payments, the contract holder, or you if
permitted by the plan, must notify us in writing of the following:
> Start date;
> Income phase payment option (see the income phase payment options table in
this section);
> Income phase payment frequency (i.e., monthly, quarterly, semi-annually or
annually);
> Choice of fixed or variable payments;
> Selection of an assumed net investment rate (only if variable payments are
elected); and
> Under some plans, certification from your employer and/or submission of the
appropriate forms is also required.
The account will continue in the accumulation phase until the contract holder
or you, as applicable, properly initiate income phase payments. Once an income
phase payment option is selected, it may not be changed; however, certain
options allow you to withdraw a lump sum.
What Affects Income Phase Payments? Some of the factors that may affect income
phase payments include: your age, your account value, the income phase payment
option selected, number of guaranteed payments (if any) selected, and whether
you select variable or fixed payments.
Fixed Payments. Amounts funding fixed income phase payments will be held in the
Company's general account. Fixed payments will remain the same over time.
Variable Payments. Amounts funding your variable income phase payments will be
held in the subaccount(s) selected. The contracts may restrict the subaccounts
available, the number of investment options to be selected and how many
transfers, if any, are allowed among options during the income phase. For
variable payments, an assumed net investment rate must be selected.
Payments from the Fixed Plus Account. Under some contracts, if a nonlifetime
income phase payment option is selected, payments from the Fixed Plus Account
may only be made on a fixed basis.
Assumed Net Investment Rate. If you select variable income phase payments, an
assumed net investment rate must also be selected. If you select a 5% rate,
your first payment will be higher, but subsequent payments will increase only
if the investment performance of the subaccounts you selected is greater than
5% annually, after deduction of fees. Payment amounts will decline if the
investment performance is less than 5%, after deduction of fees.
If you select a 3 1/2% rate, your first income phase payment will be lower and
subsequent payments will increase more rapidly or decline more slowly depending
upon the investment performance of the subaccounts you selected. For more
information about selecting an assumed net investment rate, request a copy of
the Statement of Additional Information by calling us. See "Contract
Overview--Questions."
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<PAGE>
Selecting an Increasing Payment. Under certain income phase payment options, if
you select fixed payments, some contracts will allow you to elect an increase
of one, two, or three percent, compounded annually. The higher your percentage,
the lower your initial payment will be, while future payments will increase
each year at a greater rate. Generally, this feature is not available with cash
refund payment options and nonlifetime options.
Charges Deducted.
> If variable income phase payments are selected, we make a daily deduction for
mortality and expense risks from any amounts held in the subaccounts. If you
choose variable income phase payments and a nonlifetime income phase option,
we still make this deduction from the subaccounts selected, even though we no
longer assume any mortality risk for you. The maximum mortality and expense
risk charge during the income phase is 1.25% on an annual basis of your
account value invested in the subaccount. Under some contracts, we may reduce
this fee based on certain factors. However, the charge that may apply to a
given participant upon entry into the income phase will remain fixed while
the participant remains in that phase. See "Fees--Mortality and Expense Risk
Charge."
> We may also deduct a daily administrative charge from amounts held in the
subaccounts. We currently charge this under some contracts and reserve the
right to charge it under all others. The maximum amount is 0.25% on an annual
basis of your account value invested in the subaccount. If we are currently
imposing this fee under the contract issued in connection with your plan when
you enter the income phase, the fee will apply throughout the entire income
phase.
Required Minimum Payment Amounts. The initial income phase payment or the
annual income phase payment total must meet the minimums stated in the
contract. If your account value is too low to meet these minimum payment
amounts, you will receive one lump-sum payment.
Death Benefit During the Income Phase. The death benefits that may be available
to a beneficiary are outlined in the income phase payment option table below.
If a lump-sum payment is due as a death benefit, we will make payment within
seven calendar days after we receive proof of death acceptable to us in good
order and the payment request at our Home Office.
Taxation. To avoid certain tax penalties, you and any beneficiary must meet the
distribution rules imposed by the Tax Code. See "Taxation."
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<PAGE>
Income Phase Payment Options
The following tables list the income phase payment options and accompanying
death benefits which may be available under the contracts. Some contracts
restrict the options and the terms available. Refer to your certificate or
check with your contract holder for details. We may offer additional income
phase payment options under the contract from time to time.
Terms used in the Tables:
Annuitant: The person(s) on whose life expectancy the income phase payments are
calculated.
Beneficiary: The person designated to receive the death benefit payable under
the contract.
<TABLE>
<CAPTION>
- -----------------------------------------------------------------------------------------------------------------------------
Lifetime Income Phase Payment Options
- -----------------------------------------------------------------------------------------------------------------------------
<S> <C>
Length of Payments: For as long as the annuitant lives. It is possible that only one payment will
Life Income be made should the annuitant die prior to the second payment's due date.
Death Benefit--None: All payments end upon the annuitant's death.
- -----------------------------------------------------------------------------------------------------------------------------
Length of Payments: For as long as the annuitant lives, with payments guaranteed for your
Life Income-- choice of 5 to 30 years, or as otherwise specified in the contract.
Guaranteed Pay- Death Benefit--Payment to the Beneficiary: If the annuitant dies before we have made all the
ments guaranteed payments, we will continue to pay the beneficiary the remaining payments. Unless
prohibited by a prior election of the contract holder, the beneficiary may elect to receive a
lump-sum payment equal to the present value of the remaining guaranteed payments.
- -----------------------------------------------------------------------------------------------------------------------------
Length of Payments: For as long as either annuitant lives. It is possible that only one payment
will be made should both annuitants die before the second payment's due date.
Continuing Payments:
Life Income--Two (a) When you select this option, you choose for 100%, 66 2/3% or 50% of the payment to con-
Lives tinue to the surviving annuitant after the first death; or
(b) 100% of the payment to continue to the annuitant on the second annuitant's death, and
50% of the payment to continue to the second annuitant on the annuitant's death.
Death Benefit--None: All payments end after the death of both annuitants.
- -----------------------------------------------------------------------------------------------------------------------------
Length of Payments: For as long as either annuitant lives, with payments guaranteed for your choice
of 5 to 30 years, or as otherwise specified in the contract.
Life Income--Two Continuing Payments: 100% of the payment to continue to the surviving annuitant after the
Lives--Guaranteed first death.
Payments Death Benefit--Payment to the Beneficiary: If both annuitants die before the guaranteed pay-
ments have all been paid, we will continue to pay the beneficiary the remaining payments.
Unless prohibited by a prior election of the contract holder, the beneficiary may elect to receive
a lump-sum payment equal to the present value of the remaining guaranteed payments.
- -----------------------------------------------------------------------------------------------------------------------------
Life Income--Cash Length of Payments: For as long as the annuitant lives.
Refund Option Death Benefit--Payment to the Beneficiary: Following the annuitant's death, we will pay a lump-
(limited sum payment equal to the amount originally applied to the payment option (less any premium
availability-- tax) and less the total amount of fixed income phase payments paid.
fixed payment
only)
-----------------------------------------------------------------------------------------------------------------------------
Life Income--Two Length of Payments: For as long as either annuitant lives.
Lives--Cash Continuing Payment: 100% of the payment to continue after the first death.
Refund Option Death Benefit--Payment to the Beneficiary: When both annuitants die, we will pay a lump-sum
(limited payment equal to the amount applied to the income phase payment option (less any premium
availability--fixed tax) and less the total amount of fixed income phase payments paid.
payment only)
- -----------------------------------------------------------------------------------------------------------------------------
</TABLE>
Table continued ---->
32
<PAGE>
Income phase payment options continued
<TABLE>
- -----------------------------------------------------------------------------------------------------------------------------
Nonlifetime Income Phase Payment Options(1)
- -----------------------------------------------------------------------------------------------------------------------------
<S> <C>
Length of Payments: Payments will continue for the number of years you choose, based on what is
available under the contract. Under some contracts, for amounts held in the Fixed Plus Account
during the accumulation phase, the payment must be on a fixed basis and must be for at least 5
Nonlifetime-- years. In certain cases, a lump-sum payment may be requested at any time (see below).
Guaranteed Death Benefit--Payment to the Beneficiary: If the annuitant dies before we make all the
Payments guaranteed payments, we will continue to pay the beneficiary the remaining payments. Unless
prohibited by a prior election of the contract holder, the beneficiary may elect to receive a lump-
sum payment equal to the present value of the remaining guaranteed payments. We will not
impose any early withdrawal charge.
- -----------------------------------------------------------------------------------------------------------------------------
</TABLE>
- --------------------------------------------------------------------------------
Lump-sum Payment: If the Nonlifetime--Guaranteed Payments option is elected with
variable payments, you may request at any time that all or a portion of the
present value of the remaining payments be paid in one lump sum. A lump sum
elected before three or five years of income phase payments have been completed
as specified by the contract will be treated as a withdrawal during the
accumulation phase and we will charge any applicable early withdrawal charge. If
the early withdrawal charge is based on completed purchase payment periods, each
year that passes after income payments begin will be treated as a completed
purchase payment period, even if no additional payments are made. See
"Fees--Early Withdrawal Charge." Lump-sum payments will be sent within seven
calendar days after we receive the request for payment in good order at the Home
Office.
Calculation of Lump-sum Payments: If a lump-sum payment is available to a
beneficiary or to you in the income phase payment options above, the rate we use
to calculate the present value of the remaining guaranteed payments is the same
rate we use to calculate the income phase payments (i.e., the actual fixed rate
used for the fixed payments or the 3 1/2% or 5% assumed net investment rate for
variable payments).
- --------------------------------------------------------------------------------
(1) For contracts issued to the State of Montana and Board of Trustees,
University of Illinois, the nonlifetime option is available only with fixed
income phase payments.
33
<PAGE>
In This Section
I. Introduction
II. Your Retirement Plan
III. Withdrawals and other Distributions
o Taxation of Distributions
o Taxation of Death Benefits
o 10% Penalty Tax
o Withholding for Federal Income Tax Liability
IV. Minimum Distribution Requirements
o 50% Excise Tax
V. Rules Specific to Certain Plans
o 457 Plans
o 403(b) Plans
o 401(a), 401(k) and 403(a) Plans
o 415(m) Arrangements
o Bona Fide Severance Pay Plans
VI. Taxation of the Company
When consulting a tax adviser, be certain that he or she has expertise in the
Tax Code sections applicable to your tax concerns.
Taxation
- --------------------------------------------------------------------------------
I. Introduction
This section discusses our understanding of current federal income tax laws
affecting the contract. You should keep the following in mind when reading it:
> Your tax position (or the tax position of the beneficiary, as applicable)
determines federal taxation of amounts held or paid out under the contract.
> Tax laws change. It is possible that a change in the future could affect
contracts issued in the past.
> This section addresses federal income tax rules and does not discuss federal
estate and gift tax implications, state and local taxes or any other tax
provisions.
> We do not make any guarantee about the tax treatment of the contract or
transactions involving the contract.
- --------------------------------------------------------------------------------
We do not intend this information to be tax advice. For advice about the effect
of federal income taxes or any other taxes on amounts held or paid out under
the contract, consult a tax adviser. For more comprehensive information,
contact the Internal Revenue Service.
- --------------------------------------------------------------------------------
II. Your Retirement Plan
The tax rules applicable to retirement plans vary according to plan type and
terms and conditions of the plan. To understand what tax rules apply, you need
to know the code section under which your plan qualifies. Contact your plan
sponsor, local representative or the Company to learn which code section
applies to your plan.
Plan Types. The contract is designed for use with retirement plans that qualify
under code sections 401(a), 401(k), 403(a), 403(b) or 457. A code section 457
plan may be either a 457(b) (eligible) plan or a 457 (f) (ineligible) plan. The
contract may also be used with code section 415(m) arrangements. You will not
generally pay taxes on earnings from the annuity contract described in this
prospectus until they are withdrawn (or in the case of a 457 plan, paid or made
available to you or a beneficiary). Tax-qualified retirement arrangements under
Tax Code sections 401(a), 401(k), 403(a), 403(b) or 457 also generally defer
payment of taxes on earnings until they are withdrawn (or in the case of a 457
plan, paid or made available to you or a beneficiary). (See "Taxation of
Distributions" later in this "Taxation" section for a discussion of how
distributions under the various types of plans are taxed.) When an annuity
contract is used to fund one of these tax-qualified retirement arrangements,
you should know that the annuity contract does not provide any additional tax
deferral of earnings beyond the tax deferral provided by the tax-qualified
retirement arrangement. However, annuities do provide other features and
benefits which may be valuable to you. You should discuss your alternatives
with your financial representative.
The Contract and Retirement Plans. Contract holders and contract participants
are responsible for determining that contributions, distributions and other
transactions satisfy applicable laws. Legal counsel and a tax adviser should be
consulted regarding the suitability of the contract.
Because the plan is not part of the contract, we are not bound by any plan's
terms or conditions.
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<PAGE>
III. Withdrawals and Other Distributions
Certain tax rules apply to distributions from the contract. A distribution is
any amount taken from the contract including withdrawals, income phase
payments, rollovers and any death benefit.
We report the taxable portion of all distributions to the IRS.
Taxation of Distributions
457(b) Plans. All amounts received under a 457(b) plan are includible in gross
income when paid or otherwise made available to you or your beneficiary.
457(f) Plans. Compensation deferred under a 457(f) plan is includible in gross
income in the first year when it is no longer subject to a "substantial risk of
forfeiture" as defined by the Tax Code.
401(a), 401(k), 403(a) or 403(b) Plans. All distributions from these plans are
taxed as received unless:
> The distribution is rolled over to another plan of the same type or to a
traditional individual retirement annuity/account (IRA) in accordance with
the Tax Code, or
> You made after-tax contributions to the plan. In this case, depending upon
the type of distribution, a portion may be excluded from gross income
according to rules detailed in the Tax Code.
Taxation of Death Benefits
In general, payments received by your beneficiaries after your death are taxed
in the same manner as if you had received those payments.
10% Penalty Tax
The Tax Code imposes a 10% penalty tax on the taxable portion of any
distribution from a 401(a), 401(k), 403(a) or 403(b) plan, unless certain
exceptions, including one or more of the following have occurred:
(a) You have attained age 59 1/2;
(b) You have become disabled, as defined in the Tax Code;
(c) You have died;
(d) You have separated from service with the plan sponsor at or after age 55;
(e) The distribution amount is rolled over into another plan of the same type
or to an IRA in accordance with the terms of the Tax Code;
(f) The distribution amount is made in substantially equal periodic payments
(at least annually) over your life or life expectancy or the joint lives
or joint life expectancies of you and your beneficiary. Also, you must
have separated from service with the plan sponsor; or
(g) The distribution is made due to an IRS levy upon your account.
In addition, the penalty tax does not apply for the amount of a distribution
equal to unreimbursed medical expenses incurred by you that qualify for
deduction as specified in the Tax Code. The Tax Code may impose other penalty
taxes in other circumstances.
Withholding for Federal Income Tax Liability
Any distributions under the contracts are generally subject to withholding.
Federal income tax liability rates vary according to the type of distribution
and the recipient's tax status.
35
<PAGE>
401(a), 401(k), 403(a) or 403(b) Plans. Generally, under these plans you or a
beneficiary may elect not to have tax withheld from distributions. However,
certain distributions from these plans are subject to a mandatory 20% federal
income tax withholding.
457 Plans. All distributions from a 457 plan, except death benefits, are
subject to mandatory federal income tax withholding as wages. No withholding is
required on payments to beneficiaries.
Non-resident Aliens. If you or a beneficiary is a non-resident alien and you
participate in other than a 457 plan, then any withholding is governed by code
section 1441 based on the individual's citizenship, the country of domicile and
treaty status.
IV. Minimum Distribution Requirements
To avoid certain tax penalties, you and any beneficiary must meet the minimum
distribution requirements imposed by the Tax Code. These requirements do not
apply to 457(f) plans. These rules may dictate one or more of the following:
> Start date for distributions;
> The time period in which all amounts in your account(s) must be distributed;
or
> Distribution amounts.
Start Date. Generally, you must begin receiving distributions by April 1 of the
calendar year following the calendar year in which you attain age 70 1/2 or
retire, whichever occurs later, unless:
> You are a 5% owner, in which case such distributions must begin by April 1st
of the calendar year following the calendar year in which you attain age
70 1/2; or
> Under 403(b) plans, you had amounts under the contract as of December 31,
1986. In this case, distribution of these amounts generally must begin by the
end of the calendar year in which you attain age 75 or retire, if later.
However, if you take any distributions in excess of the minimum required
amount, then special rules require that some or all of the December 31, 1986
balance be distributed earlier.
Time Period. We must pay out distributions from the contract over one of the
following time periods:
> Over your life or the joint lives of you and your beneficiary, or
> Over a period not greater than your life expectancy or the joint life
expectancies of you and your beneficiary.
Amount (457(b) Plans Only). Any distribution from a 457(b) plan, payable over a
period of more than one year, must be made in substantially non-increasing
amounts.
50% Excise Tax. If you fail to receive the minimum required distribution for
any tax year, a 50% excise tax is imposed on the required amount that was not
distributed.
Minimum Distribution of Death Benefits. The following applies to all plans
except 457(f) plans. Different distribution requirements apply if your death
occurs:
> After you begin receiving minimum distributions under the contract, or
> Before you begin receiving such distributions.
36
<PAGE>
If your death occurs after you begin receiving minimum distributions under the
contract, distributions must be made at least as rapidly as under the method in
effect at the time of your death. Code section 401(a)(9) provides specific
rules for calculating the minimum required distributions at your death. The
rules differ, depending upon:
> Whether your minimum required distribution was calculated each year based on
your single life expectancy or the joint life expectancies of you and your
beneficiary, and
> Whether life expectancy was recalculated.
The rules are complex and any beneficiary should consult with a tax adviser
before electing the method of calculation to satisfy the minimum distribution
requirements.
Should you die before you begin receiving minimum distributions under the
contract, your entire balance must be distributed by December 31 of the
calendar year containing the fifth anniversary of the date of your death. For
example, if you die on September 1, 2000, your entire balance must be
distributed to the beneficiary by December 31, 2005. However, if the
distribution begins by December 31 of the calendar year following the calendar
year of your death, then payments may be made in one of the following
time-frames:
> Over the life of the beneficiary, or
> Over a period not extending beyond the life expectancy of the beneficiary.
For 457(b) plans, if the beneficiary is not your spouse, the time-frame may not
exceed fifteen years.
Start Dates for Spousal Beneficiaries. If the beneficiary is your spouse, the
distribution must begin on or before the later of the following:
> December 31 of the calendar year following the calendar year of your death,
or
> December 31 of the calendar year in which you would have attained age 70 1/2.
V. Rules Specific to Certain Plans
457 Plans
Code section 457 provides for certain deferred compensation plans. These plans
may be offered by state governments, local governments, political subdivisions,
agencies, instrumentalities and certain affiliates of such entities, and
non-governmental tax exempt organizations. The plan may either be a 457(b)
(eligible) plan or a 457(f) (ineligible) plan. Either type of plan may permit
participants to specify the form of investment for their deferred compensation
account.
457(b) Plan. A 457(b) plan is subject to restrictions on contributions and
distributions.
457(f) Plan. A 457(f) plan is not subject to restrictions on contributions or
distributions, but must contain a "substantial risk of forfeiture" as defined
by the Tax Code. Generally, substantial risk of forfeiture means that your
right to receive deferred compensation is dependent upon your performance of
future services to an employer or other entity.
37
<PAGE>
The Contract. We make this contract available to plans subject to code section
457 only if a governmental employer sponsors the plan.
Trust Requirement. 457(b) plans maintained by state or local governments, their
political subdivisions, agencies, instrumentalities and certain affiliates are
required to hold all assets and income of the plan in trust for the exclusive
benefit of plan participants and their beneficiaries. For purposes of meeting
this requirement, custodial accounts and annuity contracts are treated as
trusts.
Contributions Excluded from Gross Income. If your employer's plan is a 457(b)
plan, the Tax Code imposes a maximum limit on annual contributions to your
account(s) that may be excluded from your gross income. For Section 457(b) plan
participants, such limit is generally the lesser of $8,000, as adjusted to
reflect changes in the cost of living, or 33% of your includible compensation
(25% of gross compensation).
Restrictions on Distributions. Under a 457(b) plan, amounts may not be made
available to you earlier than (1) the calendar year you attain age 70 1/2; (2)
when you separate from service with the employer; or (3) when you are faced
with an unforeseeable emergency. A 457(b) plan may permit a one-time in-service
distribution if the total amount payable to the participant does not exceed
$5,000 and no amounts have been deferred by the participant during the 2-year
period ending on the date of distribution.
403(b) Plans
In addition to being offered as an investment option under the contract, shares
of certain of the Funds (DEM[Reg TM] Equity Fund and Janus Twenty Fund) are also
offered for sale directly to the general public. In order to qualify for
favorable tax treatment under Section 403(b), a contract must be considered an
"annuity". In Revenue Procedure 99-44, the Internal Revenue Service concluded
that it will treat a contract as an "annuity" for tax purposes under Section
403(b), notwithstanding that contract premiums are invested at the contract
holder's direction in publicly available securities. This treatment will be
available provided no additional federal tax liability would have been incurred
if the contribution were paid into a trust or a custodial account in an
arrangement that satisfied the requirements of Section 401(a) or 403(b)(7)(A).
We believe that the contract satisfies the requirements set forth in Revenue
Procedure 99-44 and will therefore be treated as an annuity for tax purposes,
notwithstanding the fact that investments may be made in publicly available
securities. However, the exact nature of the requirements of Revenue Procedures
99-44 is unclear, and you should consider consulting with a tax adviser before
electing to invest in one of the Funds that are offered for sale to the general
public.
Under code section 403(b), contributions made by public school systems or
nonprofit healthcare organizations and other section 501(c)(3) tax exempt
organizations to purchase annuity contracts for their employees are generally
excludable from the gross income of the employee. Adverse tax consequences to
the plan and/or to you may result if your beneficial interest in the contract
is assigned or transferred to any person except to an alternate payee under a
qualified domestic relations order in accordance with code section 414(p) or to
the Company as collateral for a loan.
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<PAGE>
Exclusions from Gross Income. In order to be excludable from gross income,
total annual contributions made by you and your employer cannot exceed the
lesser of the following limits set by the Tax Code.
> The first limit, under code section 415, is generally the lesser of 25% of
your compensation or $30,000. Compensation means your compensation from the
employer sponsoring the plan and, for years beginning after December 31,
1997, includes any elective deferrals under code section 402(g) and any
amounts not includible in gross income under code sections 125 or 457.
> The second limit, which is the exclusion allowance under code section 403(b),
is usually calculated according to a formula that takes into account your
length of employment, any pretax contributions you and your employer have
already made under the plan, and any pretax contributions to certain other
retirement plans.
These two limits apply to your contributions as well as to any contributions
made by your employer on your behalf.
> An additional limit specifically limits your salary reduction contributions
to generally no more than $10,500 annually (subject to indexing). Your own
limit may be higher or lower, depending upon certain conditions.
Payments to your account(s) will be excluded from your gross income only if the
plan meets certain nondiscrimination requirements.
Restrictions on Distributions. Code section 403(b)(11) restricts the
distribution under Section 403(b) contracts of:
> Salary reduction contributions made after December 31, 1988;
> Earnings on those contributions; and
> Earnings during such period on amounts held as of December 31, 1988.
Distribution of those amounts may only occur upon your death, attainment of age
59 1/2, separation from service, disability, or financial hardship. Income
attributable to salary reduction contributions and credited on or after January
1, 1989 may not be distributed in the case of hardship.
Transfers from 403(b)(7) Custodial Accounts. If, pursuant to Revenue Ruling
90-24, the Company agrees to accept, under any of the contracts, amounts
transferred from a code section 403(b)(7) custodial account, such amounts will
be subject to the withdrawal restrictions set forth in code section
403(b)(7)(A)(ii).
Taxation of Gains Prior to Distribution. Generally no amounts accumulated under
the contract will be taxable prior to the time of actual distribution.
However, the IRS has stated in published rulings that a variable contract
owner, including participants under code section 403(b) plans, will be
considered the owner of separate account assets if the contract owner possesses
incidents of investment control over the assets. In these circumstances, income
and gains from the separate account assets would be currently includible in the
variable contract owner's gross income.
The Treasury announced that it will issue guidance regarding the extent to
which owners could direct their investments among subaccounts without being
treated as owners of the underlying assets of the separate account. It is
possible that the Treasury's position, when announced, may adversely affect the
tax treatment of existing contracts. The Company therefore reserves the right
to modify the contract as necessary to attempt to prevent the owner from being
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considered the federal tax owner of a pro rata share of the assets of the
separate account.
401(a), 401(k) and 403(a) Plans
Code sections 401(a), 401(k) and 403(a) permit certain employers to establish
various types of retirement plans for employees, and permit self-employed
individuals to establish various types of retirement plans for themselves and
for their employees. These retirement plans may permit the purchase of the
contracts to accumulate retirement savings under the plans.
Assignment or Transfer of Contracts. Adverse tax consequences to the plan
and/or to you may result if your beneficial interest in the contract is
assigned or transferred to persons other than: a plan participant as a means to
provide benefit payments; an alternate payee under a qualified domestic
relations order in accordance with code section 414(p); or to the Company as
collateral for a loan.
Exclusion From Gross Income. The Tax Code imposes a maximum limit on annual
payments to your account(s) that may be excluded from gross income. The
employer must calculate this limit under the plan in accordance with code
section 415. This limit is generally the lesser of 25% of your compensation or
$30,000. Compensation means your compensation from the employer sponsoring the
plan and, for years beginning after December 31, 1997, includes any elective
deferrals under code section 402(g) and any amounts not includible in gross
income under code sections 125 or 457. The limit applies to your contributions
as well as any contributions made by your employer on your behalf. There is an
additional limit that specifically limits your salary reduction contributions
under a 401(k) plan to generally no more than $10,500 annually (subject to
indexing). Your own limits may be higher or lower, depending upon certain
conditions. In addition, payments to your account(s) will be excluded from your
gross income only if the plan meets certain nondiscrimination requirements.
Restrictions on Distributions. Code section 401(k) restricts distribution from
your 401(k) employee account, and possibly all or a portion of your 401(k)
employer account if such amounts are included in determining compliance with
certain nondiscrimination requirements under the Tax Code.
Subject to the terms of the 401(k) plan, distribution of these restricted
amounts may only occur upon: retirement, death, attainment of age 59 1/2,
disability, separation from service, financial hardship, termination of the
plan in certain circumstances, or, generally, if your employer is a corporation
and disposes of substantially all of its assets or disposes of a subsidiary. In
addition, income attributable to salary reduction contributions and credited on
or after January 1, 1989, may not be distributed in the case of hardship.
415(m) Arrangements
If you participate in the contract through a qualified governmental excess
benefit arrangement, defined in code section 415(m), the amounts provided under
the contract may be subject to the same requirements as those applied to code
section 457(b) plans described above, except that the limits described in
"Contributions Excluded from Taxable Income" do not apply. If the code section
415(m) arrangement is not designed to meet the requirements of code section
457(b), then the amounts provided under the contract are taxed in accordance
with code section 451 and are generally taxable when paid or made available to
you.
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Bona Fide Severance Pay Plans
If you participate in the contract through certain bona fide severance pay
plans, described in code section 457(e)(11), amounts provided under the
contract are not generally taxable until paid or made available to you.
However, because these plans are not clearly defined in the Code, it may be
determined that your plan does not qualify as a bona fide severance pay plan.
If the plan does not qualify, then amounts provided under the contract are
taxable in the year in which they are deferred. Because of this lack of
clarity, it is imperative that you consult your tax adviser for guidance
regarding taxation.
VI. Taxation of the Company
We are taxed as a life insurance company under the Tax Code. Variable Annuity
Account C is not a separate entity from us. Therefore, it is not taxed
separately as a "regulated investment company," but is taxed as part of the
Company.
We automatically apply investment income and capital gains attributable to the
separate account to increase reserves under the contracts. Because of this,
under existing federal tax law we believe that any such income and gains will
not be taxed to the extent that such income and gains are applied to increase
reserves under the contracts. In addition, any foreign tax credits attributable
to the separate account will be first used to reduce any income taxes imposed
on the separate account before being used by the Company.
In summary, we do not expect that we will incur any federal income tax
liability attributable to the separate account and we do not intend to make any
provision for such taxes. However, changes in federal tax laws and/or their
interpretation may result in our being taxed on income or gains attributable to
the separate account. In this case, we may impose a charge against the separate
account (with respect to some or all of the contracts) to set aside provisions
to pay such taxes. We may deduct this amount from the separate account,
including from your account value invested in the subaccounts.
Other Topics
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The Company
Aetna Life Insurance and Annuity Company (the Company, we, us, our) issues the
contracts described in this prospectus and is responsible for providing each
contract's insurance and annuity benefits.
We are a stock life insurance company organized under the insurance laws of the
State of Connecticut in 1976 and an indirect wholly owned subsidiary of Aetna
Inc. Through a merger, our operations include the business of Aetna Variable
Annuity Insurance Company (formerly known as Participating Annuity Life
Insurance Company, an Arkansas life insurance company organized in 1954).
We are engaged in the business of issuing life insurance and annuities.
Our principal executive offices are located at:
151 Farmington Avenue
Hartford, Connecticut 06156
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Variable Annuity Account C
We established Variable Annuity Account C (the "separate account") in 1976 as a
segregated asset account to fund our variable annuity contracts. The separate
account is registered as a unit investment trust under the Investment Company
Act of 1940 (the "40 Act"). It also meets the definition of "separate account"
under the federal securities laws.
The separate account is divided into "subaccounts." These subaccounts invest
directly in shares of a corresponding fund.
Although we hold title to the assets of the separate account, such assets are
not chargeable with the liabilities of any other business that we conduct.
Income, gains or losses of the separate account are credited to or charged
against the assets of the separate account without regard to other income,
gains or losses of the Company. All obligations arising under the contracts are
obligations of the Company.
Performance Reporting
We may advertise different types of historical performance for the subaccounts
including:
> Standardized average annual total returns; and
> Non-standardized average annual total returns.
We may also advertise certain ratings, rankings or other information related to
the Company, the subaccounts or the funds. For further details regarding
performance reporting and advertising, request a Statement of Additional
Information at the number listed in "Contract Overview--Questions."
Standardized Average Annual Total Returns. We calculate standardized average
annual total returns according to a formula prescribed by the SEC. This shows
the percentage return applicable to $1,000 invested in the subaccount over the
most recent one, five and 10-year periods. If the investment option was not
available for the full period, we give a history from the date money was first
received in that option under the separate account.
We include all recurring charges during each period (e.g., mortality and
expense risk charges, annual maintenance fees, administrative expense charges
(if any) and any applicable early withdrawal charges).
Non-Standardized Average Annual Total Returns. We calculate non-standardized
average annual total returns in a similar manner as that stated above, except
we do not include the deduction of any applicable early withdrawal charge. Some
non-standardized returns may also exclude the effect of a maintenance fee. If
we reflected these charges in the calculation, they would decrease the level of
performance reflected by the calculation. Non-standardized returns may also
include performance from the fund's inception date, if that date is earlier
than the one we use for standardized returns.
Voting Rights
Each of the subaccounts holds shares in a fund and each is entitled to vote at
regular and special meetings of that fund. Under our current view of applicable
law, we will vote the shares for each subaccount as instructed by persons
having a voting interest in the subaccount. Generally, under contracts issued
in connection with section 403(b), 401 or 403(a) plans, you have a fully vested
interest in the value of your employee account, and in your employer account to
the extent of
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your vested percentage in the plan. Therefore, under such plans you generally
have the right to instruct the contract holder how to direct us to vote shares
attributable to your account. Under contracts issued in connection with section
457 plans, the contract holder retains all voting rights. We will vote shares
for which instructions have not been received in the same proportion as those
for which we received instructions. Each person who has a voting interest in
the separate account will receive periodic reports relating to the funds in
which he or she has an interest, as well as any proxy materials and a form on
which to give voting instructions. Voting instructions will be solicited by a
written communication at least 14 days before the meeting.
The number of votes, whole and fractional, any person is entitled to direct
will be determined as of the record date set by any fund in which that person
invests through the subaccounts.
> During the accumulation phase, the number of votes is equal to the portion of
your account value invested in the fund, divided by the net asset value of
one share of that fund.
> During the income phase, the number of votes is equal to the portion of
reserves set aside for the contract's share of the fund, divided by the net
asset value of one share of that fund.
Contract Distribution
The Company will serve as the principal underwriter for the securities sold
under this prospectus. The Company is registered as a broker-dealer with the
SEC and is a member of the National Association of Securities Dealers, Inc.
As principal underwriter, the Company will enter into arrangements with one or
more registered broker-dealers, including at least one affiliate of the
Company, to offer and sell the contracts described in this prospectus. We call
these entities "distributors."
We and one or more of our affiliates may also sell the contracts directly. All
individuals offering and selling the contracts must be registered
representatives of a broker-dealer and must be licensed as insurance agents to
sell variable annuity contracts
Commission Payments. We may pay commissions to persons who offer and sell the
contracts. The maximum percentage amount we ever pay with respect to a given
purchase payment is the first-year percentage which ranges from 1% to a maximum
of 7% of the first year of payments to an account. We may also pay renewal
commissions on payments made after the first year and, under group contracts,
asset-based service fees. The average of all commissions and asset-based
service fees paid is estimated to equal approximately 3% of the total payments
made over the life of an average contract. Some sales personnel may receive
various types of non-cash compensation as special sales incentives, including
trips and educational and/or business seminars. However, any such compensation
will be paid in accordance with NASD rules. In addition, we may provide
additional compensation to the Company's supervisory and other management
personnel if the overall amount of investments in funds advised by the Company
or its affiliates increases over time.
We may reimburse the distributor for certain expenses. The names of the
distributor and the registered representative responsible for your account are
stated in your enrollment materials. Commissions and sales related expenses are
paid by us and are not deducted from payments to your account.
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Third Party Compensation Arrangements. Occasionally, we may:
> Pay commissions and fees to distributors affiliated or associated with the
contract holder, you and/or other contract participants; and/or
> Enter into agreements with entities associated with the contract holder, you
and/or other participants. Through such agreements, we may pay the entities
for certain services in connection with administering the contract.
In both these circumstances there may be an understanding that the distributor
or entities would endorse us as a provider of the contract. You will be notified
if you are purchasing a contract that is subject to these arrangements.
Contract Modification
We may change the contract as required by federal or state law. In addition, we
may, upon 30 days' written notice to the contract holder, make other changes to
group contracts that would apply only to individuals who become participants
under that contract after the effective date of such changes. If the group
contract holder does not agree to a change, we reserve the right to refuse to
establish new accounts under the contract, and under some contracts, to
discontinue accepting payments to existing accounts. Certain changes will
require the approval of appropriate state or federal regulatory authorities.
In addition, under some contracts we reserve the right, without contract holder
consent, to change the tables for determining the amount of income phase
payments or the income phase payment options available. Such a change would only
apply to income phase payments attributable to contributions accepted after the
date of change.
Legal Matters and Proceedings
We are aware of no material legal proceedings pending which involve the separate
account as a party or which would materially affect the separate account. The
validity of the securities offered by this prospectus has been passed upon by
Counsel to the Company.
In recent years, several life insurance and annuity companies have been named as
defendants in lawsuits, including class action lawsuits, relating to life
insurance and annuity pricing and sales practices. A purported class action
complaint was filed in the Circuit Court of Lauderdale County, Alabama on March
28, 2000 by Loretta Shaner against the Company (the "Shaner Complaint"). The
Shaner Complaint seeks unspecified compensatory damages from the Company and
unnamed affiliates of the Company. The Shaner Complaint claims that the
Company's sale of deferred annuity products for use as investments in
tax-deferred contributory retirement plans (e.g., IRAs) is improper. This
litigation is in the preliminary stages. The Company intends to defend the
action vigorously.
The Company also is a party to other litigation and arbitration proceedings in
the ordinary course of its business, none of which is expected to have a
material adverse effect on the Company.
Payment Delay or Suspension
We reserve the right to suspend or postpone the date of any payment of benefits
or values under the following circumstances:
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(a) On any valuation date when the New York Stock Exchange is closed (except
customary weekend and holiday closings), or when trading on the Exchange is
restricted;
(b) When an emergency exists as determined by the SEC so that disposal of
securities held in the subaccounts is not reasonably practicable or it is
not reasonably practicable for us fairly to determine the value of the
subaccount's assets; or
(c) During any other periods the SEC may by order permit for the protection of
investors.
The conditions under which restricted trading or an emergency exists shall be
determined by the rules and regulations of the SEC.
Transfer of Ownership; Assignment
An assignment of a contract will only be binding on us if it is made in writing
and sent to us at our Home Office. We will use reasonable procedures to confirm
that the assignment is authentic, including verification of signature. If we
fail to follow our own procedures, we will be liable for any losses to you
directly resulting from the failure. Otherwise, we are not responsible for the
validity of any assignment. The rights of the contract holder and the interest
of the annuitant and any beneficiary will be subject to the rights of any
assignee we have on our records.
Account Termination
Under some contracts, where allowed by state law, we reserve the right to
terminate an individual account if the account value is less than $5,000
($3,500 under some contracts and $1,999 for some contracts issued in New York),
this value is not due to negative investment performance, and if no purchase
payments have been received within the previous twelve months (thirty-six
months under some contracts issued in New York). We will notify you or the
contract holder 90 days prior to terminating the account. If we exercise this
right we will not deduct an early withdrawal charge.
Intent to Confirm Quarterly
Under certain contracts, we will provide confirmation of scheduled transactions
quarterly rather than immediately to the participant.
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Oregon Education Association Choice Personal Benefit Trust ("OEA Trust") and
the Company's Agreement
Under past and current agreements, the OEA Trust exclusively endorses our tax
deferred variable annuity and other related investment products for sale to its
members. Under the current agreement, the OEA Trust agrees to:
> Facilitate Oregon Education Association ("OEA") members' access to the
variable annuity and other related investment products; and
> Assist us by providing services such as office space and secretarial/clerical
support.
The OEA Trust will provide an employee who:
> Is a registered representative of one of our affiliates;
> Advertises the Company in OEA's newsletter;
> Facilitates and coordinates meetings and workshops where registered
representatives of the Company's affiliate present the annuity to OEA
members; and
> Acts as a liaison between the Company and OEA members.
In return, the Company agrees to:
> Compensate OEA Trust to help it defray the costs incurred in providing the
administrative and other support; and
> Reimburse OEA Trust for out-of-pocket travel and meeting expenses of an OEA
Trust employee who is also a registered representative of the Company's
affiliate.
During 1999, the Company paid OEA Trust $300,000 as reimbursement for the costs
and services described above. Effective January 1, 2000, the Company will pay
the OEA Trust $27,500 each month as reimbursement for the costs and services
described above.
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Contents of the Statement of Additional Information
- --------------------------------------------------------------------------------
The Statement of Additional Information (SAI) contains more specific
information on the Separate Account and the contract, as well as the financial
statements of the Separate Account and the Company. A list of the contents of
the SAI is set forth below:
General Information and History
Variable Annuity Account C
Offering and Purchase of Contracts
Performance Data
General
Average Annual Total Return Quotations
Income Phase Payments
Sales Material and Advertising
Independent Auditors
Financial Statements of the Separate Account
Financial Statements of the Company
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Appendix I
Guaranteed Accumulation Account
- --------------------------------------------------------------------------------
The Guaranteed Accumulation Account (GAA) is a fixed interest option that may
be available during the accumulation phase. This appendix is only a summary of
certain facts about the GAA. Please read the GAA prospectus before investing in
this option.
In General. Amounts that you invest in GAA will earn a guaranteed interest rate
if amounts are left in GAA for the specified period of time. If you withdraw or
transfer those amounts before the specified period of time has elapsed, we may
apply a "market value adjustment," which may be positive or negative.
When you decide to invest money in GAA, you will want to contact your
representative or the Company to learn:
> The interest rate we will apply to the amounts that you invest in GAA. We
change this rate periodically, so be certain that you know what rate we
guarantee on the day your account dollars are invested into GAA.
> The period of time your account dollars need to remain in GAA in order to
earn that rate. You are required to leave your account dollars in GAA for a
specified period of time (guaranteed term), in order to earn the guaranteed
interest rate.
Deposit Periods. A deposit period is the time during which we offer a specific
interest rate if you deposit dollars for a certain guaranteed term. For a
particular interest rate and guaranteed term to apply to your account dollars,
you must invest them during the deposit period during which that rate and term
are offered.
Interest Rates. We guarantee different interest rates, depending upon when
account dollars are invested in GAA. The interest rate we guarantee is an
annual effective yield; that means that the rate reflects a full year's
interest. We credit interest daily at a rate that will provide the guaranteed
annual effective yield over one year. The guaranteed interest rate will never
be less than the rate stated in the contract.
Fees and Other Deductions.
If all or a portion of your account value in GAA is withdrawn, you may incur the
following:
> Market Value Adjustment (MVA)--as described in this appendix and in the GAA
prospectus;
> Tax Penalties and/or Tax withholding--See "Taxation";
> Early Withdrawal Charge--See "Fees"; and/or
> Maintenance Fee--"See Fees".
We do not make deductions from amounts in the GAA to cover mortality and expense
risks. Rather, we consider these risks when determining the credited rate.
Market Value Adjustment (MVA). If you withdraw or transfer your account value
from GAA before the guaranteed term is completed, an MVA may apply. The MVA
reflects the change in the value of the investment due to changes in interest
rates since the date of deposit. The MVA may be positive or negative.
> If interest rates at the time of withdrawal have increased since the date of
deposit, the value of the investment decreases and the MVA will be negative.
This could result in your receiving less than the amount you paid into GAA.
> If interest rates at the time of withdrawal have decreased since the date of
deposit, the value of the investment increases and the MVA will be positive.
Under some contracts issued in New York, if you have elected ECO as described
in "Systematic Distribution Options," no MVA applies to amounts withdrawn from
GAA.
Guaranteed Terms. The guaranteed term is the period of time account dollars
must be left in GAA in order to earn the interest rate specified for that
guaranteed term. We offer different guaranteed terms at different times. Check
with your representative or the Company to learn the details about the
guaranteed term(s) currently being offered.
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In general we offer the following guaranteed terms:
> short-term--three years or less; and
> long-term--ten years or less, but greater than three years.
At the end of a guaranteed term, your contract holder or you if permitted may:
> transfer dollars to a new guaranteed term;
> transfer dollars to other available investment options; or
> withdraw dollars.
Deductions may apply to withdrawals. See "Fees and Other Deductions" in this
section.
Transfer of Account Dollars. Generally, account dollars invested in GAA may be
transferred among guaranteed terms offered through GAA, and/or to other
investment options offered through the contract. However, transfers may not be
made during the deposit period in which your account dollars are invested in
GAA or for 90 days after the close of that deposit period. We will apply an MVA
to transfers made before the end of a guaranteed term.
Income Phase. GAA cannot be used as an investment option during the income
phase. The contract holder or you, if permitted, may notify us at least 30 days
in advance to elect a variable payment option and to transfer your GAA account
dollars to any of the subaccounts available during the income phase.
Loans. You cannot take a loan from your account value in GAA. However, we
include your account value in GAA when determining the amount of your account
value we may distribute as a loan.
Reinvesting Amounts Withdrawn from GAA. If amounts are withdrawn from GAA and
then reinvested in GAA, we will apply the reinvested amount to the current
deposit period. The guaranteed annual interest rate, and guaranteed terms
available on the date of reinvestment will apply. Amounts will be reinvested
proportionately in the same way as they were allocated before withdrawal.
Your account value will not be credited for any negative MVA that was deducted
at the time of withdrawal.
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Appendix II
Fixed Account
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The Fixed Account is an investment option available during the accumulation
phase under some contracts. Under some contracts, this option is available to
installment purchase plans only. This option is not available in the state of
New York under some contracts.
- --------------------------------------------------------------------------------
Additional information about this option may be found in the contract.
- --------------------------------------------------------------------------------
Amounts allocated to the Fixed Account are held in the Company's general
account which supports insurance and annuity obligations.
General Disclosure. Interests in the Fixed Account have not been registered
with the SEC in reliance upon exemptions under the Securities Act of 1933, as
amended. Disclosure in this prospectus regarding the Fixed Account may be
subject to certain generally applicable provisions of the federal securities
laws relating to the accuracy and completeness of the statements. Disclosure in
this Appendix regarding the Fixed Account has not been reviewed by the SEC.
Interest Rates. The Fixed Account guarantees that amounts allocated to this
option will earn the minimum interest rate specified in the contract. We may
credit a higher interest rate from time to time, but the rate we credit will
never fall below the guaranteed minimum specified in the contract. Interest
rate guarantees are based on the claims-paying ability of the Company. Amounts
applied to the Fixed Account will earn the interest rate in effect at the time
money is applied. Amounts in the Fixed Account will reflect a compound interest
rate as credited by us. The rate we quote is an annual effective yield.
Our determination of credited interest rates reflects a number of factors,
including mortality and expense risks, interest rate guarantees, the investment
income earned on invested assets and the amortization of any capital gains
and/or losses realized on the sale of invested assets. Under this option, we
assume the risk of investment gain or loss by guaranteeing the amounts you
allocate to this option and promising a minimum interest rate and income phase
payment.
Withdrawals. Under certain emergency conditions, some contracts allow us to
defer payment of any withdrawal for a period of up to 6 months or as provided
by federal law. Additionally, if allowed by state law, some contracts provide
that we may pay withdrawals in equal payments with interest, over a period not
to exceed 60 months when:
(a) The Fixed Account withdrawal value exceeds $250,000 on the day before
withdrawal; and
(b) The sum of the current Fixed Account withdrawal and total of all Fixed
Account withdrawals within the past 12 calendar months exceeds 20% of the
amount in the Fixed Account on the day before the current withdrawal.
The contract describes how we will determine the interest rate credited to
amounts held in the Fixed Account during the payment period, including the
minimum interest rate.
Charges. We do not make deductions from amounts in the Fixed Account to cover
mortality and expense risks. We consider these risks when determining the
credited rate.
If you make a withdrawal from amounts in the Fixed Account, an early withdrawal
charge may apply. See "Fees--Early Withdrawal Charge."
Transfers. During the accumulation phase, you may transfer account dollars from
the Fixed Account to any other available investment option. We may vary the
dollar amount that you are allowed to transfer, but it will never be less than
10% of your account value held in the Fixed Account each calendar year or each
12-month period, depending upon the contract. We determine the amount available
for transfer based on your Fixed Account value either (1) on the January 1st
preceding the transfer request or (2) as of the date we receive the transfer
request in good order at our Home Office. The 10% limit does not apply to
amounts being transferred into the Fixed Plus Account (if available under the
contract).
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By notifying the Home Office at least 30 days before income payments begin you,
or the contract holder on your behalf, may elect to have amounts transferred to
one or more of the funds available during the income phase to provide variable
payments.
Contract Loans. If available under your plan, contract loans may be made from
account values held in the Fixed Account.
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Appendix III
Fixed Plus Account
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The Fixed Plus Account is an investment option available during the
accumulation phase under some contracts.
Amounts allocated to the Fixed Plus Account are held in the Company's general
account which supports insurance and annuity obligations.
- --------------------------------------------------------------------------------
Additional information about this option may be found in the contract.
- --------------------------------------------------------------------------------
General Disclosure. Interests in the Fixed Plus Account have not been
registered with the SEC in reliance upon exemptions under the Securities Act of
1933, as amended. Disclosure in this prospectus regarding the Fixed Plus
Account may be subject to certain generally applicable provisions of the
federal securities laws relating to the accuracy and completeness of the
statements. Disclosure in this Appendix regarding the Fixed Plus Account has
not been reviewed by the SEC.
Certain Restrictions. This option is not available in the state of New York
under some contracts. We reserve the right to limit investments in or transfers
to the Fixed Plus Account. Under most contracts, you may not elect certain
withdrawal options including, under most contracts, the systematic distribution
option, if you have requested a Fixed Plus Account transfer or withdrawal in
the prior 12-month period. For some contracts, under certain emergency
conditions, we may defer payment of a withdrawal from the Fixed Plus Account
for a period of up to six months or as provided by federal law.
Interest Rates. The Fixed Plus Account guarantees that amounts allocated to
this option will earn the minimum interest rate specified in the contract. We
may credit a higher interest rate from time to time, but the rate we credit
will never fall below the guaranteed minimum specified in the contract.
Interest rate guarantees are based on the claims-paying ability of the Company.
Under some contracts, we credit amounts held in the Fixed Plus Account with a
rate 0.25% higher than the then-declared rate beginning in the tenth year after
your account was established. Amounts applied to the Fixed Plus Account will
earn the interest rate in effect at the time money is applied. Amounts in the
Fixed Plus Account will reflect a compound interest rate as credited by us. The
rate we quote is an annual effective yield.
Our determination of credited interest rates reflects a number of factors,
including mortality and expense risks, interest rate guarantees, the investment
income earned on invested assets and the amortization of any capital gains
and/or losses realized on the sale of invested assets. Under this option, we
assume the risk of investment gain or loss by guaranteeing the amounts you
allocate to this option and promising a minimum interest rate and income phase
payment.
Requests for Partial Withdrawals. The contract holder or you, if permitted by
the plan, may take up to 20% of the Fixed Plus Account value as a partial
withdrawal in each twelve (12) month period, or under some contracts, in each
calendar year. We determine the amount eligible for partial withdrawal as of
the date we receive a request for partial withdrawal in good order at our Home
Office or as of the January 1st preceding the partial withdrawal request,
depending upon the terms of the contract. The amount allowed for partial
withdrawal is reduced by any Fixed Plus Account withdrawals, transfers, loans
or amounts applied to income phase payment options made in the prior 12 months
(or, under some contracts, the prior calendar year). Under most contracts, in
calculating the 20% limit, we reserve the right to include payments made due to
the election of a systematic distribution option.
Waiver of Partial Withdrawal Limits. We generally waive the 20% limit if the
partial withdrawal is due to the election of an income phase payment option
(under some contracts, the waiver does not apply to the election of a
nonlifetime payment option with variable payments). We also waive the 20% limit
for withdrawals due to your death. Under most contracts, the waiver upon death
may only be exercised once, must occur within six months after your date of
death and must be made proportionally from all subaccounts and fixed interest
options in which the account was invested.
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Also, under some contracts the 20% limit is waived if the withdrawal is due to
financial hardship or hardship resulting from an unforeseeable emergency, as
defined by the Tax Code and regulations thereunder (under some contracts it
must be for an unforeseeable emergency), and the following requirements are
satisfied:
> The hardship is certified (required under most contracts);
> The partial withdrawal is taken proportionally from each investment option in
which your account invests;
> The amount is paid directly to you; and
> The amount paid for all withdrawals due to hardship during the previous
12-month period does not exceed 10% (20% under some contracts) of the average
value of your account(s) and all other accounts under the relevant contracts
during that same period.
Under some contracts, the percentage limit is also waived if the partial
withdrawal is due to separation from service and the following conditions are
met:
> The employer certifies you have separated from service;
> The amount withdrawn is paid directly to you; and
> The amount paid for all partial and full withdrawals due to separation from
service during the previous 12-month period does not exceed 20% of the
average value of your account(s) and all other accounts under the relevant
contracts providing this waiver during that same period.
Additionally, we may allow other waivers of the percentage limit on partial
withdrawals to participants in certain plans. You can determine what additional
waivers, if any, apply to you by referring to the contract or certificate.
Requests for Full Withdrawals. If the contract holder or you, if allowed by the
plan, request a full withdrawal of your Fixed Plus Account value, we will pay
any amounts held in the Fixed Plus Account, with interest, in five annual
payments that will be equal to:
> One-fifth of the Fixed Plus Account value on the day the request is received,
reduced by any Fixed Plus Account withdrawals, transfers, amounts used to
fund income phase payments, or loans made during the prior 12 months (or,
under some contracts, during the prior calendar year);
> One-fourth of the remaining Fixed Plus Account value 12 months later;
> One-third of the remaining Fixed Plus Account value 12 months later;
> One-half of the remaining Fixed Plus Account value 12 months later; and
> The balance of the Fixed Plus Account value 12 months later.
Under some contracts, there is a different method of calculating the amount
available each year. The full withdrawal will be paid in installments of 20% of
your account value held in the Fixed Plus Account, reduced by any Fixed Plus
Account withdrawals, transfers, amounts used to fund income phase payments, or
loans made during the prior 12 months in each of four consecutive 12-month
periods. Under this provision, the remaining Fixed Plus Account balance in the
account may be withdrawn any time after the end of the fourth 12-month period.
Once we receive a request for a full withdrawal, no further withdrawals, loans
or transfers will be permitted from the Fixed Plus Account. A full withdrawal
from the Fixed Plus Account may be canceled at any time before the end of the
five-payment period.
Waiver of Full Withdrawal Provisions. We will waive the Fixed Plus Account
five-installment payout for full withdrawals made due to one or more of the
following:
(a) Due to the election of an income phase payment option (under some contracts
this waiver does not apply to the election of a nonlifetime payment option
with variable payments);
(b) Due to your death during the accumulation phase. Some contracts require
that we be notified of your death, or that the withdrawal be taken, within
six months of the death); and/or
(c) When the Fixed Plus Account value is $5,000 or less (lower amounts may
apply under some contracts). Most contracts also require that no
withdrawals, transfers, loans or elections of income phase payment options
have been made from the account within the prior 12 months (or, under some
contracts, within the prior calendar year).
53
<PAGE>
Additionally, under certain contracts, we will waive the five-payment full
withdrawal provision due to one or more of the following:
1. Due to financial hardship or hardship resulting from an unforeseeable
emergency, as defined by the Tax Code and regulations thereunder if all of
the following conditions are met:
> The hardship is certified by the employer;
> The amount is paid directly to you; and
> The amount paid for all withdrawals due to hardship during the previous
12-month period does not exceed 10% (20% under some contracts) of the average
value of your account(s) and all other accounts under the relevant contract
during that same period.
2. For any in-service distributions permitted by the plan and the following
conditions are met:
> The distribution has been certified by the employer;
> The amount distributed is paid directly to you; and
> The amount paid for all such withdrawals during the previous 12-months does
not exceed a given percentage (stated in the contract) of the average value
of all your accounts and all other accounts under the relevant contract
during the same period.
3. Due to your separation from service with the employer, provided that all the
following apply*:
> The employer certifies that you have separated from service;
> The amount withdrawn is paid directly to you (under some contracts it must be
paid directly to you only if you withdraw the amounts more than one year
after separation); and
> Under most contracts, if the amount paid for all partial and full withdrawals
due to separation from service during the previous 12-month period does not
exceed 20% of the average value of all your account(s) and all other accounts
under the relevant contract during that same period.
4. If you are at least age 59 1/2 and have completed nine payment periods.
5. If we terminate your account based on our right to do so for accounts below
a certain value (usually $5,000 or less; lower amounts may apply under some
contracts).
6. Additionally, we may allow other waivers of the five installment payout for
full withdrawals to participants in certain plans. You can determine what
additional waivers, if any, apply to you by referring to the contract or
certificate.
Charges. We do not make deductions from amounts in the Fixed Plus Account to
cover mortality and expense risks. We consider these risks when determining the
credited rate.
Transfers. The contract holder or you, if allowed by the plan, may transfer 20%
of your account value held in the Fixed Plus Account in each 12-month period or
during each calendar year, depending upon the terms of the contract. We
determine the amount eligible for transfer on the day we receive a transfer
request in good order at our Home Office, or under some contracts, as of the
January 1st preceding the transfer request. We will reduce amounts allowed for
transfer by any Fixed Plus Account withdrawals, transfers, loans or amounts
applied to income phase payment options during the prior 12 months (or, under
some contracts, during the prior calendar year). Under most contracts, in
calculating the percentage limit on transfers, we reserve the right to include
payments made due to the election of any of the systematic distribution
options. We will waive the percentage limit on transfers when the value in the
Fixed Plus Account is $1,000 or less ($2,000 or less under some contracts).
Under some contracts, if you transfer 20% of your account value held in the
Fixed Plus Account in each of four consecutive 12-month periods, you may
transfer the remaining balance in the succeeding 12-month period provided you
do not allocate any amount to or transfer any other amount from the Fixed Plus
Account during
- -----------------
* Instead of the provisions under number 3 above, some contracts waive the
five-payment full withdrawal provision for separation from service if all of
the following apply:
> The hardship is certified by the employer;
> We receive the withdrawal request within 60 days of the date of separation;
and
> You pay a 3% charge based on the entire Fixed Plus Account value.
If you instead choose to have your payout in five annual installments as
described above, then we will not assess the charge.
54
<PAGE>
the five-year period. The 20% amount available to transfer under this provision
will be reduced by any amount transferred, taken as a loan or applied to income
phase payment options within the 12-month period preceding the first 20%
transfer. Also, we may reduce it for payments we made from your Fixed Plus
Account value under any systematic distribution option.
Income Phase. Amounts accumulating under the Fixed Plus Account can be
transferred to subaccounts to fund variable payments during the income phase.
Availability of subaccounts may vary during the income phase. Some contracts do
not permit Fixed Plus Account values to fund nonlifetime income options with
variable payments.
Contract Loans. If permitted under the plan, loans may be made from account
values held in the Fixed Plus Account. See the loan agreement for a description
of the amount available and possible consequences upon loan default if Fixed
Plus Account values are used for a loan.
Transfer Credits. The Company provides a transfer credit in certain
circumstances. See "Purchase--Transfer Credits." The transfer credit is a
specified percentage of the assets transferred to the Company under a contract
that remain in the accounts for the period of time specified by the Company,
plus the interest that would have been credited had that amount been deposited
in the Fixed Plus Account on the first business day of the calendar month
following its calculation. We apply the transfer credit to the current value
held in the Fixed Plus Account.
55
<PAGE>
Appendix IV
Employee Appointment of Employer as Agent
Under an Annuity Contract
- --------------------------------------------------------------------------------
For Plans under Section 403(b), 401 or 403(a) of the Code (except voluntary
Section 403(b) Plans)
================================================================================
My employer has adopted a plan under Internal Revenue Code Sections 403(b),
401(a)/401(k) or 403(a) ("Plan") and has purchased an Aetna Life Insurance and
Annuity Company ("Company") group variable annuity contract ("Contract") as the
funding vehicle. Contributions under this Plan will be made by me through
salary reduction to an Employee Account, and by my employer to an Employer
Account.
By electing to participate in my employer's Plan, I voluntarily appoint my
employer, who is the Contract Holder, as my agent for the purposes of all
transactions under the Contract in accordance with the terms of the Plan. The
Company is not a party to the Plan and does not interpret the Plan provisions.
As a Participant in the Plan, I understand and agree to the following terms and
conditions:
> I own the value of my Employee Account subject to the restrictions of
Sections 403(b), 401(a)/401(k) or 403(a) and the terms of the Plan. Subject
to the terms of the vesting schedule in the Plan and the restrictions of
Sections 403(b), 401(a)/401(k) or 403(a), I have ownership in the value of my
Employer Account.
> I understand that the Company will process transactions only with my
employer's written direction to the Company. I agree to be bound by my
employer's interpretation of the Plan provisions and its written direction to
the Company.
> My employer may permit me to make investment selections under the Employee
Account and/or the Employer Account directly with the Company under the terms
of the Contract. Without my employer's written permission, I will be unable
to make any investment selections under the Contract.
> On my behalf, my employer may request a loan in accordance with the terms of
the Contract and the provisions of the Plan. The Company will make payment of
the loan amount directly to me. I will be responsible for making repayments
directly to the Company in a timely manner.
> In the event of my death, my employer is the named Beneficiary under the
terms of the Contract. I have the right to name a personal Beneficiary as
determined under the terms of the Plan and file that Beneficiary election
with my employer. It is my employer's responsibility to direct the Company to
properly pay any death benefits.
56
<PAGE>
Appendix V
Fund Descriptions
- --------------------------------------------------------------------------------
The investment results of the mutual funds (funds) are likely to differ
significantly and there is no assurance that any of the funds will achieve
their respective investment objectives. Shares of the funds will rise and fall
in value and you could lose money by investing in the funds. Investments in the
funds are not bank deposits and are not insured or guaranteed by the Federal
Deposit Insurance Corporation or any other government agency. Except as noted,
all funds are diversified, as defined under the Investment Company Act of 1940.
>Aetna Balanced VP, Inc. seeks to maximize investment return, consistent with
reasonable safety of principal by investing in a diversified portfolio of one
or more of the following asset classes: stocks, bonds, and cash equivalents,
based on the investment adviser's judgment of which of those sectors or mix
thereof offers the best investment prospects.(1)
>Aetna Income Shares d/b/a Aetna Bond VP seeks to maximize total return,
consistent with reasonable risk, through investments in a diversified
portfolio consisting primarily of debt securities. It is anticipated that
capital appreciation and investment income will both be major factors in
achieving total return.(1)
>Aetna Variable Fund d/b/a Aetna Growth and Income VP seeks to maximize total
return through investments in a diversified portfolio of common stocks and
securities convertible into common stock. It is anticipated that capital
appreciation and investment income will both be major factors in achieving
total return.(1)
>Aetna Variable Encore Fund d/b/a Aetna Money Market VP seeks to provide high
current return, consistent with preservation of capital and liquidity, through
investment in high-quality money market instruments. An investment in the fund
is neither insured nor guaranteed by the U.S. Government.(1)
>Aetna Generation Portfolios, Inc.--Aetna Ascent VP seeks to provide capital
appreciation. The Portfolio is managed for investors who generally have an
investment horizon exceeding 15 years and who have a high level of risk
tolerance.(1)
>Aetna Generation Portfolios, Inc.--Aetna Crossroads VP seeks to provide total
return (i.e., income and capital appreciation, both realized and unrealized).
The Portfolio is managed for investors who generally have an investment
horizon exceeding 10 years and who have a moderate level of risk tolerance.(1)
>Aetna Generation Portfolios, Inc.--Aetna Legacy VP seeks to provide total
return consistent with preservation of capital. The Portfolio is managed for
investors who generally have an investment horizon exceeding five years and
who have a low level of risk tolerance.(1)
>Aetna Variable Portfolios, Inc.--Aetna Growth VP seeks growth of capital
through investment in a diversified portfolio consisting primarily of common
stocks and securities convertible into common stocks believed to offer growth
potential.(1)
>Aetna Variable Portfolios, Inc.--Aetna High Yield VP seeks high current income
and growth of capital primarily through investment in a diversified portfolio
of fixed-income securities rated lower than BBB- by Standard and Poor's
Corporation or lower than Baa3 by Moody's Investors Service, Inc.(1)
>Aetna Variable Portfolios, Inc.--Aetna Index Plus Large Cap VP seeks to
outperform the total return performance of the Standard & Poor's 500 Composite
Index (S&P 500), while maintaining a market level of risk.(1)
>Aetna Variable Portfolios, Inc.--Aetna Index Plus Mid Cap VP seeks to
outperform the total return performance of the Standard & Poor's MidCap 400
Index (S&P 400), while maintaining a market level of risk.(1)
>Aetna Variable Portfolios, Inc.--Aetna Index Plus Small Cap VP seeks to
outperform the total return performance of the Standard & Poor's SmallCap 600
Index (S&P 600), while maintaining a market level of risk.(1)
>Aetna Variable Portfolios, Inc.--Aetna International VP seeks long-term
capital growth primarily through investment in a diversified portfolio of
common stocks principally traded in countries outside of the United States.
Aetna International VP will not target any given level of current income.(1)
57
<PAGE>
>Aetna Variable Portfolios, Inc.--Aetna Real Estate Securities VP seeks maximum
total return primarily through investment in a diversified portfolio of equity
securities of real estate companies, the majority of which are real estate
investment trusts (REITs).(1)
>Aetna Variable Portfolios, Inc.--Aetna Small Company VP seeks growth of
capital primarily through investment in a diversified portfolio of common
stocks and securities convertible into common stocks of companies with smaller
market capitalizations.(1)
>Aetna Variable Portfolios, Inc.--Aetna Technology VP seeks long-term capital
appreciation.(1)(a)
>Aetna Variable Portfolios, Inc.--Aetna Value Opportunity VP seeks growth of
capital primarily through investment in a diversified portfolio of common
stocks and securities convertible into common stock.(1)
>AIM V.I. Capital Appreciation Fund seeks growth of capital through investment
in common stocks, with emphasis on medium- and small-sized growth
companies.(2)
>AIM V.I. Growth Fund seeks growth of capital primarily by investing in
seasoned and better capitalized companies considered to have strong earnings
momentum.(2)
>AIM V.I. Growth and Income Fund seeks growth of capital with a secondary
objective of current income.(2)
>AIM V.I. Value Fund seeks to achieve long-term growth of capital by investing
primarily in equity securities judged by the fund's investment adviser to be
undervalued relative to the investment adviser's appraisal of the current or
projected earnings of the companies issuing the securities, or relative to
current market values of assets owned by the companies issuing the securities
or relative to the equity market generally. Income is a secondary
objective.(2)
>Calvert Social Balanced Portfolio is a nondiversified portfolio that seeks to
achieve a competitive total return through an actively managed portfolio of
stocks, bonds, and money market instruments which offer income and capital
growth opportunity and which satisfy the investment and social criteria
established for the Portfolio.(3)(a)
>DEM[Reg TM] Equity Fund (Institutional Shares) seeks to provide aggressive
long-term growth through capital appreciation.(4)
>Fidelity Variable Insurance Products Fund Equity-Income Portfolio seeks
reasonable income. The fund will also consider the potential for capital
appreciation. The fund seeks a yield which exceeds the composite yield on the
securities comprising the S&P 500.(5)
>Fidelity Variable Insurance Products Fund-- Growth Portfolio seeks capital
appreciation by investing primarily in common stocks of companies the
investment adviser believes have above-average growth potential.(5)
>Fidelity Variable Insurance Products Fund-- Overseas Portfolio seeks long-term
growth of capital by investing in foreign securities, primarily in common
stocks.(5)(a)
>Fidelity Variable Insurance Products Fund II-- Contrafund[Reg TM] Portfolio
seeks long term capital appreciation by investing primarily in common stocks of
companies whose value the investment adviser believes is not fully recognized
by the public.(5)(b)
>Janus Aspen Series--Aggressive Growth Portfolio is a nondiversified portfolio
that seeks long-term growth of capital. The Portfolio pursues its investment
objective by investing primarily in common stocks selected for their growth
potential, and normally invests at least 50% of its equity assets in
medium-sized companies. Medium-sized companies are those whose market
capitalizations at the time of investment fall within the range of companies
in the S&P MidCap 400 Index. Market capitalization is a commonly used measure
of the size and value of a company. The market capitalizations within the
Index will vary, but as of December 31, 1999, they ranged from approximately
$170 million to $37 billion.(6)
>Janus Aspen Series--Balanced Portfolio seeks long-term capital growth,
consistent with preservation of capital and balanced by current income. The
Portfolio pursues its investment objective by normally investing 40%-60% of
its assets in securities selected primarily for their growth potential and
40%-60% of its assets in securities selected primarily for their income
potential. This Portfolio normally invests at least 25% of its assets in
fixed-income securities.(6)
58
<PAGE>
>Janus Aspen Series--Flexible Income Portfolio seeks to obtain maximum total
return, consistent with preservation of capital. The Portfolio pursues its
investment objective by primarily investing in a wide variety of
income-producing securities such as corporate bonds and notes, government
securities and preferred stock. As a fundamental policy, the Portfolio will
invest at least 80% of its assets in income-producing securities. The
Portfolio may own an unlimited amount of high-yield/high-risk securities, and
these may be a big part of the portfolio. This Portfolio generates total
return from a combination of current income and capital appreciation, but
income is usually the dominant portion.(6)
>Janus Aspen Series--Growth Portfolio seeks long-term growth of capital in a
manner consistent with the preservation of capital. The Portfolio pursues its
investment objective by investing primarily in common stocks selected for their
growth potential. Although the Portfolio can invest in companies of any size,
it generally invests in larger, more established issuers.(6)
>Janus Aspen Series--Worldwide Growth Portfolio seeks long-term growth of
capital in a manner consistent with the preservation of capital. The Portfolio
pursues its investment objective by investing primarily in common stocks of
companies of any size throughout the world. The Portfolio normally invests in
issuers from at least five different countries, including the United States.
The Portfolio may at times invest in fewer than five countries or even a
single country.(6)
>Janus Twenty Fund seeks long-term growth of capital by investing in a
nondiversified portfolio that normally concentrates its investments in a core
position of 20-30 common stocks.(6)
>Lexington Natural Resources Trust is a nondiversified portfolio that seeks
long-term growth of capital through investment primarily in common stocks of
companies which own or develop natural resources and other basic commodities
or supply goods and services to such companies.(7)(a)
>Oppenheimer Global Securities Fund/VA seeks long-term capital appreciation by
investing a substantial portion of its assets in securities of foreign
issuers, "growth-type" companies, cyclical industries, and special situations
which are considered to have appreciation possibilities.(8)
>Oppenheimer Strategic Bond Fund/VA seeks a high level of current income
principally derived from interest on debt securities and seeks to enhance such
income by writing covered call options on debt securities.(8)
>Portfolio Partners, Inc. (PPI)--MFS Capital Opportunities Portfolio (formerly
known as PPI MFS Value Equity Portfolio) seeks capital appreciation.(9)(a)
>Portfolio Partners, Inc. (PPI)--MFS Emerging Equities Portfolio seeks
long-term growth of capital. (9)(a)
>Portfolio Partners, Inc. (PPI)--MFS Research Growth Portfolio seeks long-term
growth of capital and future income.(9)(a)
>Portfolio Partners, Inc. (PPI)--Scudder International Growth Portfolio seeks
long-term growth of capital.(9)(b)
>Portfolio Partners, Inc. (PPI)--T. Rowe Price Growth Equity Portfolio seeks
long-term capital growth, and secondarily, increasing dividend income. (9)(c)
Investment Adviser:
(1) Investment Adviser: Aeltus Investment Management, Inc.
(a) Elijah Asset Management, LLC (subadviser)
(2) Investment Adviser: A I M Advisors, Inc.
(3) Investment Adviser: Calvert Asset Management Company, Inc.
(a) NCM Capital Management, Inc. (subadviser)
(4) Chapman Capital Management, Inc.
(5) Investment Adviser: Fidelity Management & Research Company
(a) Fidelity Management & Research (U.K.) Inc. (subadviser)
Fidelity Management & Research Far East Inc. (subadviser)
Fidelity International Investment Advisors (subadviser)
Fidelity International Investment Advisors (U.K.) Limited
(subadviser)
Fidelity Investments Japan Limited (subadviser)
(b) Fidelity Management & Research (U.K.) Inc. (subadviser)
Fidelity Management & Research Far East Inc. (subadviser)
Fidelity Investments Japan Limited (subadviser)
(6) Investment Adviser: Janus Capital Corporation
(7) Investment Adviser: Lexington Management Corporation
(a) Market Systems Research Advisors, Inc. (subadviser)
(8) Investment Adviser: OppenheimerFunds, Inc.
(9) Investment Adviser: Aetna Life Insurance and Annuity Company
(a) Massachusetts Financial Services Company (subadviser)
(b) Scudder Kemper Investments, Inc. (subadviser)
(c) T. Rowe Price Associates, Inc. (subadviser)
59
<PAGE>
Appendix VI
Condensed Financial Information
- --------------------------------------------------------------------------------
TABLE OF CONTENTS
<TABLE>
<S> <C>
Table I--For Contracts Issued Under 403(b), 401(a)
and 401(k) Plans with Total Separate Account Charges of
0.40%, 0.45%, and 0.50% ....................................... 62
Table II--For Contracts Issued Under 403(b), 401(a)
and 401(k) Plans with Total Separate Account Charges of
0.55%, 0.65%, and 0.70% ....................................... 65
Table III--For Contracts Issued Under 403(b), 401(a)
and 401(k) Plans with Total Separate Account Charges of
0.75%, 0.80%, and 0.85% ....................................... 68
Table IV--For Contracts Issued Under 403(b), 401(a)
and 401(k) Plans with Total Separate Account Charges of
0.90% and 0.95% ............................................... 71
Table V--For Contracts Issued Under 403(b), 401(a)
and 401(k) Plans with Total Separate Account Charges of
1.00% ......................................................... 75
Table VI--For Contracts Issued Under 403(b), 401(a)
and 401(k) Plans with Total Separate Account Charges of
1.05% and 1.10% ............................................... 79
Table VII--For Contracts Issued Under 403(b), 401(a)
and 401(k) Plans with Total Separate Account Charges of
1.15% ......................................................... 83
Table VIII--For Contracts Issued Under 403(b), 401(a)
and 401(k) Plans with Total Separate Account Charges of
1.20% and Those Issued Since 1996 with Total Separate
Account Charges of 1.25% ...................................... 86
Table IX--For Contracts Issued Under 403(b), 401(a)
and 401(k) Plans with Total Separate Account Charges of
1.30% and 1.40% ............................................... 90
Table X--For Contracts Issued Under 403(b), 401(a)
and 401(k) Plans Since 1996 with Total Separate Account Charges
of 1.50% ...................................................... 93
Table XI--For Contracts Issued Under 403(b) Plans and
Deferred Compensation Plans with Total Separate Account
Charges of 1.25% .............................................. 96
Table XII--For Multiple Option Contracts Issued to
San Bernardino County and Macomb County with Total
Separate Account Charges of 1.25% ............................. 100
Table XIII--For Contracts Issued Under 403(b) Plans and
Deferred Compensation Plans with Total Separate Account
Charges of 1.50% (including a 0.25% Administrative Expense
Charge Beginning April 7, 1997) ............................... 104
Table XIV--For Contracts Containing Limits on Fees Issued
Under 403(b) Plans and Deferred Compensation Plans ............ 107
Table XV--For Deferred Compensation Contracts with
Total Separate Account Charges of 0.95% Effective
On January 15, 1996 ........................................... 109
Table XVI--For Deferred Compensation Contracts with
Total Separate Account Charges of 0.95% Effective
On May 25, 1996 ............................................... 113
</TABLE>
60
<PAGE>
Appendix VI
Condensed Financial Information (continued)
- --------------------------------------------------------------------------------
<TABLE>
<S> <C>
Table XVII--For Deferred Compensation Contracts with
Total Separate Account Charges of 0.95% Effective
On or After December 16, 1996 ......................... 117
Table XVIII--For Contracts Issued to Missouri Municipal
League Under Deferred Compensation Plans with
Total Separate Account Charges of 0.80% ............... 121
Table XIX--For Contracts Issued to Metropolitan Utilities
District Under Deferred Compensation Plans with
Total Separate Account Charges of 0.80% ............... 124
</TABLE>
61
<PAGE>
Condensed Financial Information
- --------------------------------------------------------------------------------
TABLE I
FOR CONTRACTS ISSUED UNDER 403(b), 401(a) AND 401(k) PLANS
WITH TOTAL SEPARATE ACCOUNT CHARGES OF 0.40%, 0.45%, AND 0.50%
(Selected data for accumulation units outstanding throughout each period)
================================================================================
The condensed financial information presented below for each of the periods in
the two-year period ended December 31, 1999 (as applicable), is derived from
the financial statements of the separate account, which have been audited by
KPMG LLP, independent auditors. The financial statements and the independent
auditors' report thereon for the year ended December 31, 1999 are included in
the Statement of Additional Information.
<TABLE>
<CAPTION>
0.40% Total Charges
--------------------------------
1999 1998
---- ----
<S> <C> <C>
AETNA ASCENT VP
Value at beginning of period $14.086 $13.239(1)
Value at end of period $16.043 $14.086
Number of accumulation units outstanding at end
of period 84,264 86,321
AETNA BALANCED VP, INC.
Value at beginning of period $15.331 $14.244(1)
Value at end of period $17.347 $15.331
Number of accumulation units outstanding at end
of period 720,935 653,272
AETNA BOND VP
Value at beginning of period $12.079 $11.893(1)
Value at end of period $11.942 $12.079
Number of accumulation units outstanding at end
of period 198,382 190,084
AETNA CROSSROADS VP
Value at beginning of period $13.628 $12.991(1)
Value at end of period $14.960 $13.628
Number of accumulation units outstanding at end
of period 62,563 51,878
AETNA GROWTH VP
Value at beginning of period $18.018 $15.200(1)
Value at end of period $24.222 $18.018
Number of accumulation units outstanding at end
of period 59,855 21,805
AETNA GROWTH AND INCOME VP
Value at beginning of period $16.747 $15.108(1)
Value at end of period $19.586 $16.747
Number of accumulation units outstanding at end
of period 2,978,733 2,888,622
AETNA HIGH YIELD VP
Value at beginning of period $9.238 $9.125(1)
Value at end of period $9.850 $9.238
Number of accumulation units outstanding at end
of period 2,049 1,146
AETNA INDEX PLUS LARGE CAP VP
Value at beginning of period $18.916 $16.874(1)
Value at end of period $23.418 $18.916
Number of accumulation units outstanding at end
of period 193,247 87,238
AETNA INDEX PLUS MID CAP VP
Value at beginning of period $10.921 $9.480(1)
Value at end of period $12.597 $10.921
Number of accumulation units outstanding at end
of period 2,808 1,187
AETNA INDEX PLUS SMALL CAP VP
Value at beginning of period $8.840 $8.071(1)
Value at end of period $9.754 $8.840
Number of accumulation units outstanding at end
of period 2,620 3,928
AETNA INTERNATIONAL VP
Value at beginning of period $10.059(9)
Value at end of period $14.760
Number of accumulation units outstanding at end
of period 1,480
AETNA LEGACY VP
Value at beginning of period $13.111 $12.598(1)
Value at end of period $13.986 $13.111
Number of accumulation units outstanding at end
of period 21,809 19,291
<CAPTION>
0.45% Total Charges 0.50% Total Charges
-------------------------------- ---------------------------
1999 1998 1999 1998
---- ---- ---- ----
<S> <C> <C> <C> <C>
AETNA ASCENT VP
Value at beginning of period $9.519 $9.146(2) $9.848 $10.475(3)
Value at end of period $10.836 $9.519 $11.205 $9.848
Number of accumulation units outstanding at end
of period 53,201 779 4,725 2,670
AETNA BALANCED VP, INC.
Value at beginning of period $10.747(4) $11.077 $10.369(5)
Value at end of period $12.064 $12.521 $11.077
Number of accumulation units outstanding at end
of period 80,717 307,534 310,846
AETNA BOND VP
Value at beginning of period $10.455(6) $10.662 $10.118(5)
Value at end of period $10.396 $10.530 $10.662
Number of accumulation units outstanding at end
of period 19,693 84,611 88,895
AETNA CROSSROADS VP
Value at beginning of period $9.800 $9.531(2) $10.086 $10.298(5)
Value at end of period $10.752 $9.800 $11.061 $10.086
Number of accumulation units outstanding at end
of period 111,369 731 1,386 1,127
AETNA GROWTH VP
Value at beginning of period $11.470 $10.444(2) $12.397 $10.479(5)
Value at end of period $15.412 $11.470 $16.649 $12.397
Number of accumulation units outstanding at end
of period 134,661 291 34,478 19,997
AETNA GROWTH AND INCOME VP
Value at beginning of period $10.152 $9.561(2) $10.665 $10.580(5)
Value at end of period $11.867 $10.152 $12.460 $10.665
Number of accumulation units outstanding at end
of period 348,478 1,119 674,275 719,561
AETNA HIGH YIELD VP
Value at beginning of period $9.743(7) $9.260 $9.961(3)
Value at end of period $9.912 $9.864 $9.260
Number of accumulation units outstanding at end
of period 68 2,779 834
AETNA INDEX PLUS LARGE CAP VP
Value at beginning of period $11.307 $10.639(2) $12.019 $10.708(5)
Value at end of period $13.991 $11.307 $14.865 $12.019
Number of accumulation units outstanding at end
of period 226,927 859 24,911 13,477
AETNA INDEX PLUS MID CAP VP
Value at beginning of period $10.889(6) $10.947 $10.050(3)
Value at end of period $12.916 $12.614 $10.947
Number of accumulation units outstanding at end
of period 2,661 3,621 2,662
AETNA INDEX PLUS SMALL CAP VP
Value at beginning of period $8.954(6) $8.861 $9.328(8)
Value at end of period $10.166 $9.768 $8.861
Number of accumulation units outstanding at end
of period 1,373 1,190 17
AETNA INTERNATIONAL VP
Value at beginning of period $9.567 $9.231(2) $9.815 $8.967(1)
Value at end of period $14.414 $9.567 $14.780 $9.815
Number of accumulation units outstanding at end
of period 19,616 61 1,029 562
AETNA LEGACY VP
Value at beginning of period $10.103(4) $10.293 $10.115(8)
Value at end of period $10.738 $10.968 $10.293
Number of accumulation units outstanding at end
of period 32,691 495 165
</TABLE>
62
<PAGE>
Condensed Financial Information (continued)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
0.40% Total Charges
-----------------------------------
1999 1998
---- -----
<S> <C> <C>
AETNA MONEY MARKET VP
Value at beginning of period $11.225 $11.148(1)
Value at end of period $11.748 $11.225
Number of accumulation units outstanding at end
of period 271,583 107,285
AETNA REAL ESTATE SECURITIES VP
Value at beginning of period $8.898 $8.679(1)
Value at end of period $8.488 $8.898
Number of accumulation units outstanding at end
of period 2,267 1,099
AETNA SMALL COMPANY VP
Value at beginning of period $13.714 $12.820(1)
Value at end of period $17.873 $13.714
Number of accumulation units outstanding at end
of period 18,170 15,614
AETNA VALUE OPPORTUNITY VP
Value at beginning of period $16.125 $13.986(1)
Value at end of period $19.205 $16.125
Number of accumulation units outstanding at end
of period 12,434 11,799
AIM V.I. CAPITAL APPRECIATION FUND
Value at beginning of period $10.105(6)
Value at end of period $13.834
Number of accumulation units outstanding at end
of period 1,129
AIM V.I. GROWTH FUND
Value at beginning of period $10.158(6)
Value at end of period $12.140
Number of accumulation units outstanding at end
of period 114
AIM V.I. GROWTH AND INCOME FUND
Value at beginning of period $10.351(10)
Value at end of period $11.785
Number of accumulation units outstanding at end
of period 426
AIM V.I. VALUE FUND
Value at beginning of period $10.177(10)
Value at end of period $11.574
Number of accumulation units outstanding at end
of period 1,916
CALVERT SOCIAL BALANCED PORTFOLIO
Value at beginning of period $14.976 $13.635(1)
Value at end of period $16.740 $14.976
Number of accumulation units outstanding at end
of period 40,498 38,218
FIDELITY VIP EQUITY-INCOME PORTFOLIO
Value at beginning of period $15.192 $14.267(1)
Value at end of period $16.089 $15.192
Number of accumulation units outstanding at end
of period 114,725 54,320
FIDELITY VIP GROWTH PORTFOLIO
Value at beginning of period $17.525 $15.510(1)
Value at end of period $23.989 $17.525
Number of accumulation units outstanding at end
of period 325,063 128,518
FIDELITY VIP OVERSEAS PORTFOLIO
Value at beginning of period $13.170 $12.178(1)
Value at end of period $18.709 $13.170
Number of accumulation units outstanding at end
of period 30,213 10,817
FIDELITY VIP II CONTRAFUND[Reg TM] PORTFOLIO
Value at beginning of period $17.813 $15.219(1)
Value at end of period $22.045 $17.813
Number of accumulation units outstanding at end
of period 239,028 197,022
JANUS ASPEN AGGRESSIVE GROWTH
PORTFOLIO
Value at beginning of period $14.125 $11.663(1)
Value at end of period $31.711 $14.125
Number of accumulation units outstanding at end
of period 405,725 198,264
JANUS ASPEN BALANCED PORTFOLIO
Value at beginning of period $17.878 $15.614(1)
Value at end of period $22.571 $17.878
Number of accumulation units outstanding at end
of period 103,517 39,424
<CAPTION>
0.45% Total Charges 0.50% Total Charges
-------------------------------- ---------------------------
1999 1998 1999 1998
---- ---- ---- ----
<S> <C> <C> <C> <C>
AETNA MONEY MARKET VP
Value at beginning of period $10.706(7) $10.399 $10.050(5)
Value at end of period $10.777 $10.872 $10.399
Number of accumulation units outstanding at end
of period 41,969 70,539 34,355
AETNA REAL ESTATE SECURITIES VP
Value at beginning of period $8.436(7) $8.919 $9.655(8)
Value at end of period $8.544 8.500 $8.919
Number of accumulation units outstanding at end
of period 33 0 649
AETNA SMALL COMPANY VP
Value at beginning of period $9.176 $8.583(2) $9.312 $10.719(5)
Value at end of period $11.953 $9.176 $12.124 $9.312
Number of accumulation units outstanding at end
of period 63,697 318 7,763 7,541
AETNA VALUE OPPORTUNITY VP
Value at beginning of period $12.467(7) $11.369 $10.508(5)
Value at end of period $12.665 $13.527 $11.369
Number of accumulation units outstanding at end
of period 10,293 2,750 993
AIM V.I. CAPITAL APPRECIATION FUND
Value at beginning of period
Value at end of period
Number of accumulation units outstanding at end
of period
AIM V.I. GROWTH FUND
Value at beginning of period
Value at end of period
Number of accumulation units outstanding at end
of period
AIM V.I. GROWTH AND INCOME FUND
Value at beginning of period $10.518(7)
Value at end of period $11.781
Number of accumulation units outstanding at end
of period 882
AIM V.I. VALUE FUND
Value at beginning of period $9.753(6)
Value at end of period $11.570
Number of accumulation units outstanding at end
of period 8,954
CALVERT SOCIAL BALANCED PORTFOLIO
Value at beginning of period $10.714 $10.217(2) $10.966 $10.377(5)
Value at end of period $11.970 $10.714 $12.245 $10.966
Number of accumulation units outstanding at end
of period 26,121 553 54,141 50,868
FIDELITY VIP EQUITY-INCOME PORTFOLIO
Value at beginning of period $9.968 $9.516(2) $10.363 $10.522(5)
Value at end of period $10.552 $9.968 $10.964 $10.363
Number of accumulation units outstanding at end
of period 110,939 519 15,333 6,791
FIDELITY VIP GROWTH PORTFOLIO
Value at beginning of period $13.493(6) $12.779 $10.651(5)
Value at end of period $16.655 $17.475 $12.779
Number of accumulation units outstanding at end
of period 65,561 49,321 18,614
FIDELITY VIP OVERSEAS PORTFOLIO
Value at beginning of period $10.647(6) $10.183 $10.774(5)
Value at end of period $13.410 $14.451 $10.183
Number of accumulation units outstanding at end
of period 8,158 636 251
FIDELITY VIP II CONTRAFUND[Reg TM] PORTFOLIO
Value at beginning of period $11.475 $10.553(2) $11.985 $10.673(5)
Value at end of period $14.194 $11.475 $14.817 $11.985
Number of accumulation units outstanding at end
of period 268,570 1,754 22,846 8,618
JANUS ASPEN AGGRESSIVE GROWTH
PORTFOLIO
Value at beginning of period $17.095(6) $12.541 $10.570(5)
Value at end of period $27.222 $28.128 $12.541
Number of accumulation units outstanding at end
of period 153,109 200,051 134,432
JANUS ASPEN BALANCED PORTFOLIO
Value at beginning of period $11.816 $10.945(2) $12.415 $10.615(5)
Value at end of period $14.910 $11.816 $15.658 $12.415
Number of accumulation units outstanding at end
of period 224,105 612 70,956 30,062
</TABLE>
63
<PAGE>
Condensed Financial Information (continued)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
0.40% Total Charges 0.45% Total Charges
------------------- -------------------
1999 1998 1999 1998
---- ---- ---- ----
<S> <C> <C> <C> <C>
JANUS ASPEN FLEXIBLE INCOME PORTFOLIO
Value at beginning of period $13.053 $12.743(1) $10.446 $10.457(2)
Value at end of period $13.210 $13.053 $10.566 $10.446
Number of accumulation units outstanding at end
of period 20,171 21,374 42,021 82
JANUS ASPEN GROWTH PORTFOLIO
Value at beginning of period $17.807 $14.790(1) $11.979(4)
Value at end of period $25.537 $17.807 $16.753
Number of accumulation units outstanding at end
of period 156,805 73,901 233,330
JANUS ASPEN WORLDWIDE GROWTH
PORTFOLIO
Value at beginning of period $17.582 $15.344(1) $10.235 $9.630(2)
Value at end of period $28.797 $17.582 $16.757 $10.235
Number of accumulation units outstanding at end
of period 531,184 383,490 466,808 1,186
LEXINGTON NATURAL RESOURCES TRUST
Value at beginning of period $9.626 $9.754(1) $8.644(7)
Value at end of period $10.939 $9.626 $8.758
Number of accumulation units outstanding at end
of period 8,856 12,237 4,241
OPPENHEIMER GLOBAL SECURITIES FUND/VA
Value at beginning of period $10.047 $9.004(1) $13.162(7)
Value at end of period $15.859 $10.047 $15.849
Number of accumulation units outstanding at end
of period 5,065 1,564 27
OPPENHEIMER STRATEGIC BOND FUND/VA
Value at beginning of period $9.923 $9.695(1) $9.953 $9.975(2)
Value at end of period $10.162 $9.923 $10.188 $9.953
Number of accumulation units outstanding at end
of period 1,576 1,513 6,623 575
PPI MFS CAPITAL OPPORTUNITIES
PORTFOLIO
Value at beginning of period $15.676 $14.188(1) $10.673 $9.984(2)
Value at end of period $23.231 $15.676 $15.809 $10.673
Number of accumulation units outstanding at end
of period 44,936 36,644 36,972 192
PPI MFS EMERGING EQUITIES PORTFOLIO
Value at beginning of period $12.776 $10.705(1) $11.002 $10.094(2)
Value at end of period $19.199 $12.776 $16.525 $11.002
Number of accumulation units outstanding at end
of period 413,847 339,956 128,507 371
PPI MFS RESEARCH GROWTH PORTFOLIO
Value at beginning of period $10.641 $9.362(1) $10.577 $9.862(2)
Value at end of period $13.146 $10.641 $13.061 $10.577
Number of accumulation units outstanding at end
of period 323,178 331,958 50,332 473
PPI SCUDDER INTERNATIONAL GROWTH
PORTFOLIO
Value at beginning of period $13.602 $12.570(1) $11.701(6)
Value at end of period $21.461 $13.602 $15.452
Number of accumulation units outstanding at end
of period 196,446 168,912 42,208
PPI T. ROWE PRICE GROWTH PORTFOLIO
Value at beginning of period $16.863 $15.042(1) $11.057 $10.302(2)
Value at end of period $20.546 $16.863 $13.464 $11.057
Number of accumulation units outstanding at end
of period 165,483 169,615 79,777 817
<CAPTION>
0.50% Total Charges
-------------------
1999 1998
---- ----
<S> <C> <C>
JANUS ASPEN FLEXIBLE INCOME PORTFOLIO
Value at beginning of period $10.640 $10.186(5)
Value at end of period $10.757 $10.640
Number of accumulation units outstanding at end
of period 24,751 13,364
JANUS ASPEN GROWTH PORTFOLIO
Value at beginning of period $12.391 $10.286(5)
Value at end of period $17.752 $12.391
Number of accumulation units outstanding at end
of period 36,959 7,785
JANUS ASPEN WORLDWIDE GROWTH
PORTFOLIO
Value at beginning of period $11.485 $10.980(5)
Value at end of period $18.792 $11.485
Number of accumulation units outstanding at end
of period 68,055 37,288
LEXINGTON NATURAL RESOURCES TRUST
Value at beginning of period
Value at end of period
Number of accumulation units outstanding at end
of period
OPPENHEIMER GLOBAL SECURITIES FUND/VA
Value at beginning of period $10.070 $10.131(11)
Value at end of period $15.881 $10.070
Number of accumulation units outstanding at end
of period 786 180
OPPENHEIMER STRATEGIC BOND FUND/VA
Value at beginning of period $9.946 $9.995(3)
Value at end of period $10.176 $9.946
Number of accumulation units outstanding at end
of period 5 14
PPI MFS CAPITAL OPPORTUNITIES
PORTFOLIO
Value at beginning of period $11.320 $10.726(5)
Value at end of period $16.760 $11.320
Number of accumulation units outstanding at end
of period 69,113 71,605
PPI MFS EMERGING EQUITIES PORTFOLIO
Value at beginning of period $10.841 $9.990(5)
Value at end of period $16.274 $10.841
Number of accumulation units outstanding at end
of period 181,468 178,398
PPI MFS RESEARCH GROWTH PORTFOLIO
Value at beginning of period $11.127 $10.490(5)
Value at end of period $13.733 $11.127
Number of accumulation units outstanding at end
of period 72,064 79,769
PPI SCUDDER INTERNATIONAL GROWTH
PORTFOLIO
Value at beginning of period $10.797 $10.711(5)
Value at end of period $17.018 $10.797
Number of accumulation units outstanding at end
of period 115,575 113,511
PPI T. ROWE PRICE GROWTH PORTFOLIO
Value at beginning of period $11.551 $10.256(5)
Value at end of period $14.059 $11.551
Number of accumulation units outstanding at end
of period 6,942 4,869
</TABLE>
- -----------------
(1) Funds were first received in this option during November 1998.
(2) Funds were first received in this option during December 1998.
(3) Funds were first received in this option during May 1998.
(4) Funds were received in this option during January 1999.
(5) Funds were first received in this option during April 1998.
(6) Funds were received in this option during September 1999.
(7) Funds were received in this option during November 1999.
(8) Funds were first received in this option during June 1998.
(9) Funds were received in this option during February 1999.
(10) Funds were received in this option during July 1999.
(11) Funds were first received in this option during July 1998.
64
<PAGE>
Condensed Financial Information
- --------------------------------------------------------------------------------
TABLE II
FOR CONTRACTS ISSUED UNDER 403(b), 401(a) AND 401(k) PLANS
WITH TOTAL SEPARATE ACCOUNT CHARGES OF 0.55%, 0.65%, AND 0.70%
(Selected data for accumulation units outstanding throughout each period)
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
The condensed financial information presented below for the period ended
December 31, 1999 (as applicable), is derived from the financial statements of
the separate account, which have been audited by KPMG LLP, independent auditors.
The financial statements and the independent auditors' report thereon for the
year ended December 31, 1999 are included in the Statement of Additional
Information.
<TABLE>
<CAPTION>
0.55% Total Charges 0.65% Total Charges 0.70% Total Charges
------------------- ------------------- -------------------
1999 1999 1999
---- ---- ----
<S> <C> <C> <C>
AETNA ASCENT VP
Value at beginning of period $9.864(1) $9.484(2) $10.056(3)
Value at end of period $10.819 $10.802 $10.793
Number of accumulation units outstanding at end
of period 3,650 184,741 7,803
AETNA BALANCED VP, INC.
Value at beginning of period $11.266(1) $11.183(2) $11.192(3)
Value at end of period $12.045 $12.026 $12.016
Number of accumulation units outstanding at end
of period 237,142 119,529 96,082
AETNA BOND VP
Value at beginning of period $10.419(1) $10.594(2) $10.447(3)
Value at end of period $10.380 $10.363 $10.355
Number of accumulation units outstanding at end
of period 31,523 113,547 36,755
AETNA CROSSROADS VP
Value at beginning of period $10.032(1) $9.799(2) $10.178(3)
Value at end of period $10.735 $10.718 $10.709
Number of accumulation units outstanding at end
of period 3,809 90,629 2,882
AETNA GROWTH VP
Value at beginning of period $12.980(1) $12.835(4) $12.378(3)
Value at end of period $15.387 $15.362 $15.350
Number of accumulation units outstanding at end
of period 12,695 17,762 9,291
AETNA GROWTH AND INCOME VP
Value at beginning of period $10.922(1) $10.867(2) $10.936(3)
Value at end of period $11.847 $11.828 $11.819
Number of accumulation units outstanding at end
of period 1,191,861 479,213 296,167
AETNA HIGH YIELD VP
Value at beginning of period $9.577(1) $9.554(4) $9.827(3)
Value at end of period $9.896 $9.880 $9.872
Number of accumulation units outstanding at end
of period 129 215 76
AETNA INDEX PLUS LARGE CAP VP
Value at beginning of period $12.633(1) $12.586(2) $12.362(3)
Value at end of period $13.968 $13.946 $13.935
Number of accumulation units outstanding at end
of period 107,027 198,941 34,700
AETNA INDEX PLUS MID CAP VP
Value at beginning of period $11.478(1) $11.204(4) $11.323(3)
Value at end of period $12.896 $12.875 $12.864
Number of accumulation units outstanding at end
of period 60 5,592 285
AETNA INDEX PLUS SMALL CAP VP
Value at beginning of period $9.235(1) $8.416(2) $8.998(5)
Value at end of period $10.150 $10.134 $10.126
Number of accumulation units outstanding at end
of period 70 40,166 42
AETNA INTERNATIONAL VP
Value at beginning of period $11.236(1) $11.021(4) $10.927(4)
Value at end of period $14.391 $14.367 $14.356
Number of accumulation units outstanding at end
of period 59 405 14
AETNA LEGACY VP
Value at beginning of period $10.273(1) $10.114(2) $10.364(3)
Value at end of period $10.721 $10.704 $10.695
Number of accumulation units outstanding at end
of period 22,643 62,233 834
</TABLE>
65
<PAGE>
Condensed Financial Information (continued)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
0.55% Total Charges 0.65% Total Charges 0.70% Total Charges
------------------- ------------------- -------------------
1999 1999 1999
---- ---- ----
<S> <C> <C> <C>
AETNA MONEY MARKET VP
Value at beginning of period $10.669(1) $10.407(2) $10.434(3)
Value at end of period $10.760 $10.742 $10.734
Number of accumulation units outstanding at end
of period 67,587 249,862 38,319
AETNA REAL ESTATE SECURITIES VP
Value at beginning of period $8.263(1) $8.621(5)
Value at end of period $8.517 $8.510
Number of accumulation units outstanding at end
of period 15 14
AETNA SMALL COMPANY VP
Value at beginning of period $9.996(1) $9.740(4) $9.503(3)
Value at end of period $11.933 $11.914 $11.904
Number of accumulation units outstanding at end
of period 17,509 8,502 3,486
AETNA VALUE OPPORTUNITY VP
Value at beginning of period $11.893(1) $11.196(2) $11.759(3)
Value at end of period $12.645 $12.625 $12.615
Number of accumulation units outstanding at end
of period 20,593 69,481 2,839
AIM V.I. CAPITAL APPRECIATION FUND
Value at beginning of period $10.908(1) $10.189(5)
Value at end of period $13.820 $13.805
Number of accumulation units outstanding at end
of period 48 82
AIM V.I. GROWTH FUND
Value at beginning of period $10.242(1) $10.100(4) $11.387(6)
Value at end of period $12.127 $12.119 $12.115
Number of accumulation units outstanding at end
of period 990 1,728 54
AIM V.I. GROWTH AND INCOME FUND
Value at beginning of period $10.229(1) $10.785(1) $9.404(5)
Value at end of period $11.773 $11.764 $11.760
Number of accumulation units outstanding at end
of period 880 17 41
AIM V.I. VALUE FUND
Value at beginning of period $10.242(1) $10.194(4) $9.661(5)
Value at end of period $11.562 $11.554 $11.550
Number of accumulation units outstanding at end
of period 203 733 80
CALVERT SOCIAL BALANCED PORTFOLIO
Value at beginning of period $11.207(1) $11.067(4) $11.025(3)
Value at end of period $11.951 $11.932 $11.922
Number of accumulation units outstanding at end
of period 13,438 3,322 3,736
FIDELITY VIP EQUITY-INCOME PORTFOLIO
Value at beginning of period $10.462(1) $10.691(2) $11.230(3)
Value at end of period $10.535 $10.518 $10.509
Number of accumulation units outstanding at end
of period 65,154 123,332 8,104
FIDELITY VIP GROWTH PORTFOLIO
Value at beginning of period $14.192(1) $13.816(2) $13.474(3)
Value at end of period $16.628 $16.601 $16.588
Number of accumulation units outstanding at end
of period 129,223 309,124 37,940
FIDELITY VIP OVERSEAS PORTFOLIO
Value at beginning of period $11.159(1) $10.023(2) $10.077(3)
Value at end of period $13.389 $13.367 $13.356
Number of accumulation units outstanding at end
of period 8,971 15,589 396
FIDELITY VIP II CONTRAFUND[Reg TM] PORTFOLIO
Value at beginning of period $12.452(1) $12.698(2) $12.471(3)
Value at end of period $14.171 $14.148 $14.137
Number of accumulation units outstanding at end
of period 119,841 276,641 19,120
JANUS ASPEN AGGRESSIVE GROWTH
PORTFOLIO
Value at beginning of period $19.683(1) $15.589(2) $15.319(3)
Value at end of period $27.178 $27.135 $27.113
Number of accumulation units outstanding at end
of period 112,798 216,673 49,337
JANUS ASPEN BALANCED PORTFOLIO
Value at beginning of period $13.489(1) $13.502(2) $13.144(3)
Value at end of period $14.886 $14.862 $14.850
Number of accumulation units outstanding at end
of period 104,837 251,840 7,041
</TABLE>
66
<PAGE>
Condensed Financial Information (continued)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
0.55% Total Charges 0.65% Total Charges 0.70% Total Charges
------------------- ------------------- -------------------
1999 1999 1999
---- ---- ----
<S> <C> <C> <C>
JANUS ASPEN FLEXIBLE INCOME
PORTFOLIO
Value at beginning of period $10.380(1) $10.622(2) $10.473(3)
Value at end of period $10.549 $10.532 $10.523
Number of accumulation units outstanding at end
of period 27,998 88,620 2,088
JANUS ASPEN GROWTH PORTFOLIO
Value at beginning of period $14.336(1) $14.246(4) $13.194(3)
Value at end of period $16.726 $16.699 $16.686
Number of accumulation units outstanding at end
of period 74,827 29,859 26,860
JANUS ASPEN WORLDWIDE GROWTH
PORTFOLIO
Value at beginning of period $12.638(1) $11.492(2) $11.151(3)
Value at end of period $16.730 $16.703 $16.689
Number of accumulation units outstanding at end
of period 177,086 237,116 31,925
LEXINGTON NATURAL RESOURCES TRUST
Value at beginning of period $8.255(1) $8.125(4) $9.037(3)
Value at end of period $8.744 $8.729 $8.722
Number of accumulation units outstanding at end
of period 4,257 2,246 2,018
OPPENHEIMER GLOBAL SECURITIES
FUND/VA
Value at beginning of period $12.055(1) $11.782(4) $14.516(6)
Value at end of period $15.823 $15.798 $15.785
Number of accumulation units outstanding at end
of period 371 137 58
OPPENHEIMER STRATEGIC BOND FUND/VA
Value at beginning of period $9.997(1) $9.942(4)
Value at end of period $10.172 $10.155
Number of accumulation units outstanding at end
of period 1,233 64
PPI MFS CAPITAL OPPORTUNITIES
PORTFOLIO
Value at beginning of period $12.844(1) $12.653(4) $11.997(3)
Value at end of period $15.783 $15.758 $15.745
Number of accumulation units outstanding at end
of period 51,669 14,720 4,667
PPI MFS EMERGING EQUITIES PORTFOLIO
Value at beginning of period $12.327(1) $10.880(2) $11.165(3)
Value at end of period $16.499 $16.472 $16.459
Number of accumulation units outstanding at end
of period 103,358 109,678 32,821
PPI MFS RESEARCH GROWTH PORTFOLIO
Value at beginning of period $11.303(1) $11.075(2) $11.020(3)
Value at end of period $13.040 $13.019 $13.008
Number of accumulation units outstanding at end
of period 54,854 89,183 22,796
PPI SCUDDER INTERNATIONAL GROWTH
PORTFOLIO
Value at beginning of period $12.322(1) $10.375(2) $10.603(3)
Value at end of period $15.427 $15.403 $15.390
Number of accumulation units outstanding at end
of period 60,619 24,792 12,199
PPI T. ROWE PRICE GROWTH EQUITY
PORTFOLIO
Value at beginning of period $11.814(1) $11.742(4) $11.790(3)
Value at end of period $13.443 $13.421 $13.410
Number of accumulation units outstanding at end
of period 26,870 17,657 17,647
</TABLE>
- -----------------
(1) Funds were first received in this option during November 1999.
(2) Funds were first received in this option during April 1999.
(3) Funds were first received in this option during May 1999.
(4) Funds were first received in this option during October 1999.
(5) Funds were first received in this option during September 1999.
(6) Funds were first received in this option during December 1999.
67
<PAGE>
Condensed Financial Information
- --------------------------------------------------------------------------------
TABLE III
FOR CONTRACTS ISSUED UNDER 403(b), 401(a) and 401(k) PLANS
WITH TOTAL SEPARATE ACCOUNT CHARGES OF 0.75%, 0.80%, AND 0.85%
(Selected data for accumulation units outstanding throughout each period)
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
The condensed financial information presented below for each of the periods in
the two-year period ended December 31, 1999 (as applicable), is derived from the
financial statements of the separate account, which have been audited by KPMG
LLP, independent auditors. The financial statements and the independent
auditors' report thereon for the year ended December 31, 1999 are included in
the Statement of Additional Information.
<TABLE>
<CAPTION>
0.75% Total Charges 0.80% Total Charges
------------------- -------------------
1999 1998 1999 1998
---- ---- ---- ----
<S> <C> <C> <C> <C>
AETNA ASCENT VP
Value at beginning of period $9.502 $9.913(1) $10.101 $10.604(2)
Value at end of period $10.784 $9.502 $11.458 $10.101
Number of accumulation units outstanding at end
of period 52,442 43,142 169,078 255,775
AETNA BALANCED VP, INC.
Value at beginning of period $10.648 $10.002(1) $11.358 $10.646(2)
Value at end of period $12.006 $10.648 $12.801 $11.358
Number of accumulation units outstanding at end
of period 194,625 183,347 3,380,638 3,962,527
AETNA BOND VP
Value at beginning of period $10.502 $10.058(1) $10.650 $10.157(2)
Value at end of period $10.346 $10.502 $10.487 $10.650
Number of accumulation units outstanding at end
of period 51,554 51,916 617,714 771,660
AETNA CROSSROADS VP
Value at beginning of period $9.782 $9.936(1) $10.312 $10.524(2)
Value at end of period $10.701 $9.782 $11.275 $10.312
Number of accumulation units outstanding at end
of period 67,538 62,144 93,911 213,970
AETNA GROWTH VP
Value at beginning of period $11.449 $9.925(1) $13.030 $11.326(2)
Value at end of period $15.338 $11.449 $17.447 $13.030
Number of accumulation units outstanding at end
of period 28,754 18,200 728,964 303,987
AETNA GROWTH AND INCOME VP
Value at beginning of period $10.133 $9.935(1) $11.108 $10.925(2)
Value at end of period $11.809 $10.133 $12.939 $11.108
Number of accumulation units outstanding at end
of period 806,180 773,713 13,348,490 15,809,881
AETNA HIGH YIELD VP
Value at beginning of period $9.284 $10.145(4) $9.241 $9.939(1)
Value at end of period $9.864 $9.284 $9.814 $9.241
Number of accumulation units outstanding at end
of period 98 0 6,652 15,411
AETNA INDEX PLUS LARGE CAP VP
Value at beginning of period $11.286 $10.015(1) $12.587 $11.117(2)
Value at end of period $13.923 $11.286 $15.521 $12.587
Number of accumulation units outstanding at end
of period 81,578 48,831 2,792,639 1,974,900
AETNA INDEX PLUS MID CAP VP
Value at beginning of period $11.183 $9.822(1) $10.925 $9.576(1)
Value at end of period $12.854 $11.183 $12.551 $10.925
Number of accumulation units outstanding at end
of period 3,959 1,623 50,227 80,312
AETNA INDEX PLUS SMALL CAP VP
Value at beginning of period $9.201 $9.642(1) $8.843 $9.269(1)
Value at end of period $10.117 $9.201 $9.718 $8.843
Number of accumulation units outstanding at end
of period 2,982 1,481 50,270 90,819
AETNA INTERNATIONAL VP
Value at beginning of period $9.550 $9.600(5) $9.795 $10.043(1)
Value at end of period $14.344 $9.550 $14.705 $9.795
Number of accumulation units outstanding at end
of period 134 7 43,135 45,801
AETNA LEGACY VP
Value at beginning of period $10.054 $9.977(1) $10.423 $10.359(2)
Value at end of period $10.686 $10.054 $11.073 $10.423
Number of accumulation units outstanding at end
of period 19,174 21,150 232,707 418,989
<CAPTION>
0.85% Total Charges
-------------------
1999 1998
---- ----
<S> <C> <C>
AETNA ASCENT VP
Value at beginning of period $14.113 $13.699(3)
Value at end of period $16.002 $14.113
Number of accumulation units outstanding at end
of period 150,454 70,991
AETNA BALANCED VP, INC.
Value at beginning of period $15.360 $13.327(3)
Value at end of period $17.303 $15.360
Number of accumulation units outstanding at end
of period 1,479,143 1,379,122
AETNA BOND VP
Value at beginning of period $12.102 $11.381(3)
Value at end of period $11.911 $12.102
Number of accumulation units outstanding at end
of period 637,752 654,765
AETNA CROSSROADS VP
Value at beginning of period $13.654 $13.063(3)
Value at end of period $14.921 $13.654
Number of accumulation units outstanding at end
of period 121,322 102,916
AETNA GROWTH VP
Value at beginning of period $18.036 $13.357(3)
Value at end of period $24.137 $18.036
Number of accumulation units outstanding at end
of period 65,690 24,240
AETNA GROWTH AND INCOME VP
Value at beginning of period $16.779 $14.694(3)
Value at end of period $19.535 $16.779
Number of accumulation units outstanding at end
of period 5,572,187 5,795,667
AETNA HIGH YIELD VP
Value at beginning of period $9.238 $9.899(5)
Value at end of period $9.806 $9.238
Number of accumulation units outstanding at end
of period 7,192 644
AETNA INDEX PLUS LARGE CAP VP
Value at beginning of period $18.945 $14.692(3)
Value at end of period $23.350 $18.945
Number of accumulation units outstanding at end
of period 611,611 459,428
AETNA INDEX PLUS MID CAP VP
Value at beginning of period $10.921 $9.028(5)
Value at end of period $12.540 $10.921
Number of accumulation units outstanding at end
of period 16,931 5,681
AETNA INDEX PLUS SMALL CAP VP
Value at beginning of period $8.840 $8.464(5)
Value at end of period $9.710 $8.840
Number of accumulation units outstanding at end
of period 20,739 6,564
AETNA INTERNATIONAL VP
Value at beginning of period $9.792 $9.580(5)
Value at end of period $14.693 $9.792
Number of accumulation units outstanding at end
of period 12,523 8,719
AETNA LEGACY VP
Value at beginning of period $13.136 $12.497(3)
Value at end of period $13.950 $13.136
Number of accumulation units outstanding at end
of period 83,670 61,043
</TABLE>
68
<PAGE>
Condensed Financial Information (continued)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
0.75% Total Charges 0.80% Total Charges
------------------- -------------------
1999 1998 1999 1998
---- ---- ---- ----
<S> <C> <C> <C> <C>
AETNA MONEY MARKET VP
Value at beginning of period $10.283 $10.022(1) $10.414 $10.136(2)
Value at end of period $10.725 $10.283 $10.855 $10.414
Number of accumulation units outstanding at end
of period 23,586 26,810 1,891,667 1,574,454
AETNA REAL ESTATE SECURITIES VP
Value at beginning of period $8.944 $9.792(1) $8.900 $10.041(4)
Value at end of period $8.503 $8.944 $8.457 $8.900
Number of accumulation units outstanding at end
of period 75 9 21,245 27,225
AETNA SMALL COMPANY VP
Value at beginning of period $9.159 $9.812(1) $9.764 $10.578(2)
Value at end of period $11.895 $9.159 $12.675 $9.764
Number of accumulation units outstanding at end
of period 15,498 13,043 1,290,260 1,165,745
AETNA VALUE OPPORTUNITY VP
Value at beginning of period $10.620 $9.921(1) $11.692 $10.972(2)
Value at end of period $12.604 $10.620 $13.870 $11.692
Number of accumulation units outstanding at end
of period 16,091 14,488 356,705 350,826
AIM V.I. CAPITAL APPRECIATION FUND
Value a beginning of period $9.957(6) $10.166(7)
Value at end of period $13.801 $13.796
Number of accumulation units outstanding at end
of period 49 21,991
AIM V.I. GROWTH FUND
Value a beginning of period $9.867(8) $10.306(9)
Value at end of period $12.111 $12.106
Number of accumulation units outstanding at end
of period 98 51,298
AIM V.I. GROWTH AND INCOME FUND
Value a beginning of period $9.275(7) $9.280(7)
Value at end of period $11.756 $11.752
Number of accumulation units outstanding at end
of period 2,338 81,160
AIM V.I. VALUE FUND
Value a beginning of period $9.815(6) $9.762(6)
Value at end of period $11.546 $11.542
Number of accumulation units outstanding at end
of period 1,011 166,176
CALVERT SOCIAL BALANCED PORTFOLIO
Value at beginning of period $10.694 $10.081(1) $11.254 $10.492(2)
Value at end of period $11.912 $10.694 $12.530 $11.254
Number of accumulation units outstanding at end
of period 9,602 9,543 73,943 91,333
FIDELITY VIP EQUITY-INCOME PORTFOLIO
Value at beginning of period $9.950 $9.914(1) $10.850 $10.873(2)
Value at end of period $10.501 $9.950 $11.445 $10.850
Number of accumulation units outstanding at end
of period 73,216 67,227 833,428 846,660
FIDELITY VIP GROWTH PORTFOLIO
Value at beginning of period $12.150 $9.956(1) $13.307 $10.887(2)
Value at end of period $16.574 $12.150 $18.143 $13.307
Number of accumulation units outstanding at end
of period 110,673 63,727 1,602,406 981,477
FIDELITY VIP OVERSEAS PORTFOLIO
Value at beginning of period $9.427 $9.912(1) $10.530 $11.184(2)
Value at end of period $13.346 $9.427 $14.900 $10.530
Number of accumulation units outstanding at end
of period 6,009 4,502 53,817 47,503
FIDELITY VIP II CONTRAFUND[Reg TM] PORTFOLIO
Value at beginning of period $11.454 $9.912(1) $12.589 $10.937(2)
Value at end of period $14.126 $11.454 $15.518 $12.589
Number of accumulation units outstanding at end
of period 96,687 78,075 1,895,670 2,102,805
JANUS ASPEN AGGRESSIVE GROWTH
PORTFOLIO
Value at beginning of period $12.109 $9.887(1) $13.056 $10.647(2)
Value at end of period $27.091 $12.109 $29.195 $13.056
Number of accumulation units outstanding at end
of period 181,271 117,103 2,728,718 1,605,726
JANUS ASPEN BALANCED PORTFOLIO
Value at beginning of period $11.794 $9.856(1) $12.741 $10.741(2)
Value at end of period $14.838 $11.794 $16.022 $12.741
Number of accumulation units outstanding at end
of period 69,363 26,592 815,864 425,125
<CAPTION>
0.85% Total Charges
-------------------
1999 1998
---- ----
<S> <C> <C>
AETNA MONEY MARKET VP
Value at beginning of period $11.246 $10.799(3)
Value at end of period $11.717 $11.246
Number of accumulation units outstanding at end
of period 472,335 396,669
AETNA REAL ESTATE SECURITIES VP
Value at beginning of period $8.897 $10.041(4)
Value at end of period $8.450 8.897
Number of accumulation units outstanding at end
of period 2,945 398
AETNA SMALL COMPANY VP
Value at beginning of period $13.728 $13.558(3)
Value at end of period $17.810 $13.728
Number of accumulation units outstanding at end
of period 36,864 25,298
AETNA VALUE OPPORTUNITY VP
Value at beginning of period $16.141 $13.404(3)
Value at end of period $19.138 $16.141
Number of accumulation units outstanding at end
of period 19,877 15,014
AIM V.I. CAPITAL APPRECIATION FUND
Value a beginning of period $10.489(7)
Value at end of period $13.791
Number of accumulation units outstanding at end
of period 2,863
AIM V.I. GROWTH FUND
Value a beginning of period $10.118(7)
Value at end of period $12.102
Number of accumulation units outstanding at end
of period 14,758
AIM V.I. GROWTH AND INCOME FUND
Value a beginning of period $9.575(7)
Value at end of period $11.748
Number of accumulation units outstanding at end
of period 19,774
AIM V.I. VALUE FUND
Value a beginning of period $10.458(9)
Value at end of period $11.538
Number of accumulation units outstanding at end
of period 10,688
CALVERT SOCIAL BALANCED PORTFOLIO
Value at beginning of period $15.005 $13.124(3)
Value at end of period $16.697 $15.005
Number of accumulation units outstanding at end
of period 200,068 132,605
FIDELITY VIP EQUITY-INCOME PORTFOLIO
Value at beginning of period $15.220 $13.708(3)
Value at end of period $16.047 $15.220
Number of accumulation units outstanding at end
of period 303,704 306,099
FIDELITY VIP GROWTH PORTFOLIO
Value at beginning of period $17.558 $12.857(3)
Value at end of period $23.927 $17.558
Number of accumulation units outstanding at end
of period 520,647 399,820
FIDELITY VIP OVERSEAS PORTFOLIO
Value at beginning of period $13.195 $12.182(3)
Value at end of period $18.661 $13.195
Number of accumulation units outstanding at end
of period 20,580 13,937
FIDELITY VIP II CONTRAFUND[Reg TM] PORTFOLIO
Value at beginning of period $17.847 $13.824(3)
Value at end of period $21.988 $17.847
Number of accumulation units outstanding at end
of period 303,914 217,720
JANUS ASPEN AGGRESSIVE GROWTH
PORTFOLIO
Value at beginning of period $14.152 $10.427(3)
Value at end of period $31.629 $14.152
Number of accumulation units outstanding at end
of period 608,435 320,159
JANUS ASPEN BALANCED PORTFOLIO
Value at beginning of period $17.912 $13.744(3)
Value at end of period $22.513 $17.912
Number of accumulation units outstanding at end
of period 141,750 47,668
</TABLE>
69
<PAGE>
Condensed Financial Information (continued)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
0.75% Total Charges 0.80% Total Charges
------------------- -------------------
1999 1998 1999 1998
---- ---- ---- ----
<S> <C> <C> <C> <C>
JANUS ASPEN FLEXIBLE INCOME PORTFOLIO
Value at beginning of period $10.427 $10.062(1) $10.643 $10.210(2)
Value at end of period $10.515 $10.427 $10.727 $10.643
Number of accumulation units outstanding at end
of period 6,855 6,947 300,761 367,677
JANUS ASPEN GROWTH PORTFOLIO
Value at beginning of period $11.666 $9.810(1) $12.836 $10.918(2)
Value at end of period $16.673 $11.666 $18.335 $12.836
Number of accumulation units outstanding at end
of period 73,998 41,104 1,206,255 434,913
JANUS ASPEN WORLDWIDE GROWTH
PORTFOLIO
Value at beginning of period $10.217 $9.953(1) $12.009 $11.798(2)
Value at end of period $16.676 $10.217 $19.592 $12.009
Number of accumulation units outstanding at end
of period 211,807 167,606 4,837,241 4,480,348
LEXINGTON NATURAL RESOURCES TRUST
Value at beginning of period $7.696 $9.791(1) $8.415 $10.922(2)
Value at end of period $8.715 $7.696 $9.524 $8.415
Number of accumulation units outstanding at end
of period 10,960 13,175 92,365 140,250
OPPENHEIMER GLOBAL SECURITIES
FUND/VA
Value at beginning of period $10.027 $9.713(1) $10.050 $10.001(4)
Value at end of period $15.772 $10.027 $15.800 $10.050
Number of accumulation units outstanding at end
of period 2,178 535 8,820 2,686
OPPENHEIMER STRATEGIC BOND FUND/VA
Value at beginning of period $9.935 $10.029(4) $9.926 $10.025(1)
Value at end of period $10.139 $9.935 $10.125 $9.926
Number of accumulation units outstanding at end
of period 1,052 925 4,198 18,786
PPI CAPITAL OPPORTUNITIES PORTFOLIO
Value at beginning of period $10.653 $9.963(1) $12.055 $11.274(2)
Value at end of period $15.732 $10.653 $17.793 $12.055
Number of accumulation units outstanding at end
of period 57,584 49,316 343,239 376,471
PPI MFS EMERGING EQUITIES PORTFOLIO
Value at beginning of period $10.982 $9.828(1) $11.846 $10.687(2)
Value at end of period $16.446 $10.982 $17.731 $11.846
Number of accumulation units outstanding at end
of period 161,338 139,547 2,991,235 3,491,454
PPI MFS RESEARCH GROWTH PORTFOLIO
Value at beginning of period $10.558 $9.917(1) $11.682 $11.019(2)
Value at end of period $12.998 $10.558 $14.375 $11.682
Number of accumulation units outstanding at end
of period 52,317 46,475 541,625 750,388
PPI SCUDDER INTERNATIONAL GROWTH
PORTFOLIO
Value at beginning of period $9.781 $10.009(1) $11.041 $11.338(2)
Value at end of period $15.378 $9.781 $17.351 $11.041
Number of accumulation units outstanding at end
of period 37,463 34,688 721,190 850,743
PPI T. ROWE PRICE GROWTH PORTFOLIO
Value at beginning of period $11.036 $9.961(1) $12.153 $10.967(2)
Value at end of period $13.399 $11.036 $14.748 $12.153
Number of accumulation units outstanding at end
of period 52,086 42,865 869,106 1,058,534
<CAPTION>
0.85% Total Charges
-------------------
1999 1998
---- ----
<S> <C> <C>
JANUS ASPEN FLEXIBLE INCOME PORTFOLIO
Value at beginning of period $13.078 $12.306(3)
Value at end of period $13.175 $13.078
Number of accumulation units outstanding at end
of period 35,683 25,566
JANUS ASPEN GROWTH PORTFOLIO
Value at beginning of period $17.841 $13.512(3)
Value at end of period $25.471 $17.841
Number of accumulation units outstanding at end
of period 538,138 446,603
JANUS ASPEN WORLDWIDE GROWTH
PORTFOLIO
Value at beginning of period $17.615 $14.300(3)
Value at end of period $28.723 $17.615
Number of accumulation units outstanding at end
of period 864,936 710,851
LEXINGTON NATURAL RESOURCES TRUST
Value at beginning of period $9.645 $11.047(3)
Value at end of period $10.911 $9.645
Number of accumulation units outstanding at end
of period 28,939 14,190
OPPENHEIMER GLOBAL SECURITIES
FUND/VA
Value at beginning of period $10.046 $9.275(5)
Value at end of period $15.787 $10.046
Number of accumulation units outstanding at end
of period 10,762 7,592
OPPENHEIMER STRATEGIC BOND FUND/VA
Value at beginning of period $9.922 $9.935(5)
Value at end of period $10.116 $9.922
Number of accumulation units outstanding at end
of period 5,761 2,776
PPI CAPITAL OPPORTUNITIES PORTFOLIO
Value at beginning of period $15.706 $12.661(3)
Value at end of period $23.171 $15.706
Number of accumulation units outstanding at end
of period 399,213 382,755
PPI MFS EMERGING EQUITIES PORTFOLIO
Value at beginning of period $12.800 $10.399(3)
Value at end of period $19.150 $12.800
Number of accumulation units outstanding at end
of period 822,854 706,142
PPI MFS RESEARCH GROWTH PORTFOLIO
Value at beginning of period $10.661 $8.861(3)
Value at end of period $13.112 $10.661
Number of accumulation units outstanding at end
of period 681,109 616,205
PPI SCUDDER INTERNATIONAL GROWTH
PORTFOLIO
Value at beginning of period $13.628 $11.868(3)
Value at end of period $21.405 $13.628
Number of accumulation units outstanding at end
of period 471,226 434,054
PPI T. ROWE PRICE GROWTH PORTFOLIO
Value at beginning of period $16.895 $13.562(3)
Value at end of period $20.493 $16.895
Number of accumulation units outstanding at end
of period 195,928 129,123
</TABLE>
- -----------------
(1) Funds were first received in this option during June 1998.
(2) Funds were first received in this option during May 1998.
(3) Funds were first received in this option during January 1998.
(4) Funds were first received in this option during July 1998.
(5) Funds were first received in this option during August 1998.
(6) Funds were first received in this option during May 1999.
(7) Funds were first received in this option during June 1999.
(8) Funds were first received in this option during August 1999.
(9) Funds were first received in this option during July 1999.
70
<PAGE>
Condensed Financial Information
- --------------------------------------------------------------------------------
TABLE IV
FOR CONTRACTS ISSUED UNDER 403(b), 401(a) AND 401(k) PLANS
WITH TOTAL SEPARATE ACCOUNT CHARGES OF 0.90% AND 0.95%
(Selected data for accumulation units outstanding throughout each period)
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
The condensed financial information presented below for each of the periods
ended December 31, 1999, 1998, 1997 and 1996 (as applicable), is derived from
the financial statements of the separate account, which have been audited by
KPMG LLP, independent auditors. The financial statements and the independent
auditors' report thereon for the year ended December 31, 1999 are included in
the Statement of Additional Information.
<TABLE>
<CAPTION>
0.90% Total
Charges
-----------------------
1999 1998
---- ----
<S> <C> <C>
AETNA ASCENT VP
Value at beginning of period $9.953 $9.227(1)
Value at end of period $11.279 $9.953
Number of accumulation units
outstanding at end of period 19,046 212
AETNA BALANCED VP, INC.
Value at beginning of period $11.157 $10.451(3)
Value at end of period $12.561 $11.157
Number of accumulation units
outstanding at end of period $13,521 1,648
AETNA BOND VP
Value at beginning of period $10.654 $10.070(4)
Value at end of period $10.481 $10.654
Number of accumulation units
outstanding at end of period 2,670 383
AETNA CROSSROADS VP
Value at beginning of period $10.489(5)
Value at end of period $11.115
Number of accumulation units
outstanding at end of period 4,102
AETNA GROWTH VP
Value at beginning of period $12.681 $10.958(3)
Value at end of period $16.962 $12.681
Number of accumulation units
outstanding at end of period 4,182 628
AETNA GROWTH AND INCOME VP
Value at beginning of period $10.804 $10.562(4)
Value at end of period $12.572 $10.804
Number of accumulation units
outstanding at end of period 128,637 8,243
AETNA HIGH YIELD VP
Value at beginning of period $9.802(7)
Value at end of period $9.797
Number of accumulation units
outstanding at end of period 146
AETNA INDEX PLUS LARGE CAP VP
Value at beginning of period $12.206 $10.648(4)
Value at end of period $15.036 $12.206
Number of accumulation units
outstanding at end of period 14,614 2,384
AETNA INDEX PLUS MID CAP VP
Value at beginning of period $11.099(10)
Value at end of period $12.529
Number of accumulation units
outstanding at end of period 42
AETNA INDEX PLUS SMALL CAP VP
Value at beginning of period $8.837 $9.582(8)
Value at end of period $9.702 $8.837
Number of accumulation units
outstanding at end of period 586 62
AETNA INTERNATIONAL VP
Value at beginning of period $11.286(10)
Value at end of period $14.680
Number of accumulation units
outstanding at end of period 24
AETNA LEGACY VP
Value at beginning of period $10.351 $10.390(11)
Value at end of period $10.986 $10.351
Number of accumulation units
outstanding at end of period 549 37
<CAPTION>
0.95% Total Charges
-----------------------------------------------------
1999 1998 1997 1996
---- ---- ---- ----
<S> <C> <C> <C> <C>
AETNA ASCENT VP
Value at beginning of period $14.076 $13.624 $11.472 $10.000(2)
Value at end of period $15.944 $14.076 $13.624 $11.472
Number of accumulation units
outstanding at end of period 75,808 75,369 119,471 20,237
AETNA BALANCED VP, INC.
Value at beginning of period $15.320 $13.226 $10.902 $10.000(2)
Value at end of period $17.240 $15.320 $13.226 $10.902
Number of accumulation units
outstanding at end of period 565,751 468,468 986,711 702,222
AETNA BOND VP
Value at beginning of period $12.070 $11.268 $10.503 $10.000(2)
Value at end of period $11.867 $12.070 $11.268 $10.503
Number of accumulation units
outstanding at end of period 228,114 187,653 251,156 161,765
AETNA CROSSROADS VP
Value at beginning of period $13.618 $12.980 $11.146 $10.000(2)
Value at end of period $14.867 $13.618 $12.980 $11.146
Number of accumulation units
outstanding at end of period 75,297 105,586 117,725 7,882
AETNA GROWTH VP
Value at beginning of period $18.005 $13.202 $12.787(6)
Value at end of period $24.071 $18.005 $13.202
Number of accumulation units
outstanding at end of period 53,957 25,778 1,880
AETNA GROWTH AND INCOME VP
Value at beginning of period $16.735 $14.756 $11.469 $10.000(2)
Value at end of period $19.464 $16.736 $14.756 $11.469
Number of accumulation units
outstanding at end of period 2,450,338 2,224,467 3,760,076 2,876,728
AETNA HIGH YIELD VP
Value at beginning of period $9.231 $10.078(8)
Value at end of period $9.789 $9.231
Number of accumulation units
outstanding at end of period 14,009 799
AETNA INDEX PLUS LARGE CAP VP
Value at beginning of period $18.902 $14.500 $10.934 $10.000(9)
Value at end of period $23.273 $18.902 $14.500 $10.934
Number of accumulation units
outstanding at end of period 297,994 108,387 62,360 2,697
AETNA INDEX PLUS MID CAP VP
Value at beginning of period $10.913 $10.108(11)
Value at end of period $12.519 $10.913
Number of accumulation units
outstanding at end of period 2,500 564
AETNA INDEX PLUS SMALL CAP VP
Value at beginning of period $8.834 $9.366(12)
Value at end of period $9.694 $8.834
Number of accumulation units
outstanding at end of period 16,330 2,625
AETNA INTERNATIONAL VP
Value at beginning of period $9.785 $10.103(11)
Value at end of period $14.668 $9.785
Number of accumulation units
outstanding at end of period 4,750 1,247
AETNA LEGACY VP
Value at beginning of period $13.102 $12.369 $10.905 $10.000(2)
Value at end of period $13.899 $13.102 $12.369 $10.905
Number of accumulation units
outstanding at end of period 38,639 55,494 47,726 61
</TABLE>
71
<PAGE>
Condensed Financial Information (continued)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
0.90% Total
Charges
-----------------------------------
1999 1998
---- ----
<S> <C> <C>
AETNA MONEY MARKET VP
Value at beginning of period $10.381 $10.297(1)
Value at end of period $10.811 $10.381
Number of accumulation units
outstanding at end of period 11,232 1,235
AETNA REAL ESTATE SECURITIES VP
Value at beginning of period
Value at end of period
Number of accumulation units
outstanding at end of period
AETNA SMALL COMPANY VP
Value at beginning of period $9.513 $10.939(3)
Value at end of period $12.336 $9.513
Number of accumulation units
outstanding at end of period 6,872 2,604
AETNA VALUE OPPORTUNITY VP
Value at beginning of period $11.462 $10.515(4)
Value at end of period $13.583 $11.462
Number of accumulation units
outstanding at end of period 6,154 3,526
AIM V.I. CAPITAL APPRECIATION FUND
Value at beginning of period
Value at end of period
Number of accumulation units
outstanding at end of period
AIM V.I. GROWTH FUND
Value at beginning of period $11.422(7)
Value at end of period $12.098
Number of accumulation units
outstanding at end of period 264
AIM V.I. GROWTH AND INCOME FUND
Value at beginning of period
Value at end of period
Number of accumulation units
outstanding at end of period
AIM V.I. VALUE FUND
Value at beginning of period $10.450(16)
Value at end of period $11.534
Number of accumulation units
outstanding at end of period 617
CALVERT SOCIAL BALANCED
PORTFOLIO
Value at beginning of period $11.320(5)
Value at end of period $12.414
Number of accumulation units
outstanding at end of period 3,589
FIDELITY VIP EQUITY-INCOME
PORTFOLIO
Value at beginning of period $10.671 $9.265(17)
Value at end of period $11.245 $10.671
Number of accumulation units
outstanding at end of period 6,809 20
FIDELITY VIP GROWTH PORTFOLIO
Value at beginning of period $12.978 $10.757(3)
Value at end of period $17.677 $12.978
Number of accumulation units
outstanding at end of period 9,393 1,343
FIDELITY VIP OVERSEAS PORTFOLIO
Value at beginning of period $13.705(7)
Value at end of period $14.905
Number of accumulation units
outstanding at end of period 2,474
FIDELITY VIP II CONTRAFUND[Reg TM]
PORTFOLIO
Value at beginning of period $12.293 $10.737(4)
Value at end of period $15.138 $12.293
Number of accumulation units
outstanding at end of period 25,519 1,038
JANUS ASPEN AGGRESSIVE GROWTH
PORTFOLIO
Value at beginning of period $12.830 $10.787(3)
Value at end of period $28.662 $12.830
Number of accumulation units
outstanding at end of period 17,145 353
<CAPTION>
0.95% Total Charges
--------------------------------------------------------------------
1999 1998 1997 1996
---- ---- ---- ----
<S> <C> <C> <C> <C>
AETNA MONEY MARKET VP
Value at beginning of period $11.217 $10.738 $10.277 $10.000(2)
Value at end of period $11.675 $11.217 $10.738 $10.277
Number of accumulation units
outstanding at end of period 392,226 127,186 147,123 39,811
AETNA REAL ESTATE SECURITIES VP
Value at beginning of period $8.891 $10.053(11)
Value at end of period $8.436 $8.891
Number of accumulation units
outstanding at end of period 17,118 15,245
AETNA SMALL COMPANY VP
Value at beginning of period $13.704 $13.684 $13.119(13)
Value at end of period $17.762 $13.704 $13.684
Number of accumulation units
outstanding at end of period 54,303 44,944 2,124
AETNA VALUE OPPORTUNITY VP
Value at beginning of period $16.113 $13.290 $12.912(13)
Value at end of period $19.085 $16.113 $13.290
Number of accumulation units
outstanding at end of period 42,540 29,112 587
AIM V.I. CAPITAL APPRECIATION FUND
Value at beginning of period $10.487(14)
Value at end of period $13.781
Number of accumulation units
outstanding at end of period 613
AIM V.I. GROWTH FUND
Value at beginning of period $9.465(15)
Value at end of period $12.094
Number of accumulation units
outstanding at end of period 6,722
AIM V.I. GROWTH AND INCOME FUND
Value at beginning of period $10.261(16)
Value at end of period $11.740
Number of accumulation units
outstanding at end of period 10,352
AIM V.I. VALUE FUND
Value at beginning of period $9.827(14)
Value at end of period $11.530
Number of accumulation units
outstanding at end of period 14,638
CALVERT SOCIAL BALANCED
PORTFOLIO
Value at beginning of period $14.965 $12.994 $10.924 $10.000(2)
Value at end of period $16.636 $14.965 $12.994 $10.924
Number of accumulation units
outstanding at end of period 117,902 95,020 93,905 19,808
FIDELITY VIP EQUITY-INCOME
PORTFOLIO
Value at beginning of period $15.180 $13.729 $10.819 $10.000(2)
Value at end of period $15.989 $15.180 $13.729 $10.819
Number of accumulation units
outstanding at end of period 188,394 147,150 125,669 27,639
FIDELITY VIP GROWTH PORTFOLIO
Value at beginning of period $17.512 $12.674 $10.362 $10.000(2)
Value at end of period $23.840 $17.512 $12.674 $10.362
Number of accumulation units
outstanding at end of period 345,699 165,194 150,612 54,133
FIDELITY VIP OVERSEAS PORTFOLIO
Value at beginning of period $13.160 $11.783 $10.664 $10.000(2)
Value at end of period $18.593 $13.160 $11.783 $10.664
Number of accumulation units
outstanding at end of period 10,723 9,217 20,273 3,820
FIDELITY VIP II CONTRAFUND[Reg TM]
PORTFOLIO
Value at beginning of period $17.800 $13.825 $11.243 $10.000(2)
Value at end of period $21.908 $17.800 $13.825 $11.243
Number of accumulation units
outstanding at end of period 357,610 254,734 266,396 95,199
JANUS ASPEN AGGRESSIVE GROWTH
PORTFOLIO
Value at beginning of period $14.114 $10.613 $9.510 $10.000(2)
Value at end of period $31.514 $14.114 $10.613 $9.510
Number of accumulation units
outstanding at end of period 638,670 375,663 416,100 125,232
</TABLE>
72
<PAGE>
Condensed Financial Information (continued)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
0.90% Total
Charges 0.95% Total Charges
----------------------------- ---------------------------------------------------------------
1999 1998 1999 1998 1997 1996
---- ---- ---- ---- ---- ----
<S> <C> <C> <C> <C> <C> <C>
JANUS ASPEN BALANCED
PORTFOLIO
Value at beginning of period $12.490 $10.570(3) $17.865 $13.431 $11.105 $10.000(2)
Value at end of period $15.690 $12.490 $22.431 $17.865 $13.431 $11.105
Number of accumulation units
outstanding at end of period 5,703 479 232,279 81,983 42,699 9,188
JANUS ASPEN FLEXIBLE INCOME
PORTFOLIO
Value at beginning of period $10.638 $10.232(3) $13.043 $12.069 $10.902 $10.000(9)
Value at end of period $10.712 $10.638 $13.127 $13.043 $12.069 $10.902
Number of accumulation units
outstanding at end of period 5,764 393 69,212 36,740 29,665 1,402
JANUS ASPEN GROWTH PORTFOLIO
Value at beginning of period $12.464 $10.569(12) $17.794 $13.242 $10.891 $10.000(2)
Value at end of period $17.786 $12.464 $25.378 $17.794 $13.242 $10.891
Number of accumulation units
outstanding at end of period 11,348 128 187,296 53,448 92,666 39,841
JANUS ASPEN WORLDWIDE
GROWTH PORTFOLIO
Value at beginning of period $11.745 $10.606(4) $17.569 $13.757 $11.370 $10.000(2)
Value at end of period $19.141 $11.745 $28.619 $17.569 $13.757 $11.370
Number of accumulation units
outstanding at end of period 26,947 5,140 643,914 427,855 555,448 151,935
LEXINGTON NATURAL RESOURCES TRUST
Value at beginning of period $9.619 $12.082 $11.383 $10.000(2)
Value at end of period $10.871 $9.619 $12.082 $11.383
Number of accumulation units
outstanding at end of period 51,656 51,077 85,577 5,295
OPPENHEIMER GLOBAL SECURITIES
FUND/VA
Value at beginning of period $10.039 $10.182(8)
Value at end of period $15.760 $10.039
Number of accumulation units
outstanding at end of period 544 144
OPPENHEIMER STRATEGIC
BOND FUND/VA
Value at beginning of period $9.915 $10.037(8)
Value at end of period $10.099 $9.915
Number of accumulation units
outstanding at end of period 1,106 614
PPI MFS CAPITAL
OPPORTUNITIES PORTFOLIO
Value at beginning of period $11.654 $11.183(3) $15.664 $12.478 $12.296(18)
Value at end of period $17.184 $11.654 $23.087 $15.664 $12.478
Number of accumulation units
outstanding at end of period 11,687 957 121,012 103,317 96,338
PPI MFS EMERGING EQUITIES
PORTFOLIO
Value at beginning of period $11.462 $10.233(12) $12.767 $9.940 $10.062(18)
Value at end of period $17.139 $11.462 $19.080 $12.767 $9.940
Number of accumulation units
outstanding at end of period 20,776 236 684,437 626,638 795,375
PPI MFS RESEARCH GROWTH
PORTFOLIO
Value at beginning of period $11.375 $10.954(3) $10.633 $8.727 $8.897(18)
Value at end of period $13.982 $11.375 $13.064 $10.633 $8.727
Number of accumulation units
outstanding at end of period 8,901 828 259,783 237,867 484,407
PPI SCUDDER INTERNATIONAL
GROWTH PORTFOLIO
Value at beginning of period $11.029 $10.020(1) $13.592 $11.522 $11.376(18)
Value at end of period $17.314 $11.029 $21.327 $13.592 $11.522
Number of accumulation units
outstanding at end of period 15,231 10 248,204 234,075 351,150
PPI T. ROWE PRICE
GROWTH EQUITY PORTFOLIO
Value at beginning of period $11.792 $10.840(3) $16.851 $13.332 $13.062(18)
Value at end of period $14.296 $11.792 $20.418 $16.851 $13.332
Number of accumulation units
outstanding at end of period 6,405 169 257,759 197,938 238,562
</TABLE>
- -----------------
(1) Funds were first received in this option during October 1998.
(2) The initial accumulation unit value was established during May 1996 when
the fund became available under the contract, when funds were first
received in this option or when the applicable daily asset charge was
first utilized.
(3) Funds were first received in this option during April 1998.
73
<PAGE>
Condensed Financial Information (continued)
- --------------------------------------------------------------------------------
(4) Funds were first received in this option during March 1998.
(5) Funds were first received in this option during August 1999.
(6) Funds were first received in this option during August 1997.
(7) Funds were first received in this option during December 1999.
(8) Funds were first received in this option during July 1998.
(9) The initial accumulation unit value was established during August 1996
when the fund became available under the contract, when funds were first
received in this option or when the applicable daily asset charge was
first utilized.
(10) Funds were first received in this option during September 1999.
(11) Funds were first received in this option during May 1998.
(12) Funds were first received in this option during June 1998.
(13) Funds were first received in this option during December 1997.
(14) Funds were first received in this option during June 1999.
(15) Funds were first received in this option during May 1999.
(16) Funds were first received in this option during July 1999.
(17) Funds were first received in this option during September 1998.
(18) Funds were first received in this option during November 1997.
74
<PAGE>
Condensed Financial Information
- --------------------------------------------------------------------------------
TABLE V
FOR CONTRACTS ISSUED UNDER 403(b), 401(a) AND 401(k) PLANS
WITH TOTAL SEPARATE ACCOUNT CHARGES OF 1.00%
(Selected data for accumulation units outstanding throughout each period)
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
The condensed financial information presented below for each of the periods in
the four-year period ended December 31, 1999 (as applicable), is derived from
the financial statements of the separate account, which have been audited by
KPMG LLP, independent auditors. The financial statements and the independent
auditors' report thereon for the year ended December 31, 1999 are included in
the Statement of Additional Information.
<TABLE>
<CAPTION>
1999 1998 1997 1996
---- ---- ---- ----
<S> <C> <C> <C> <C>
AETNA ASCENT VP
Value at beginning of period $14.057 $13.613 $11.468 $10.000(1)
Value at end of period $15.915 $14.057 $13.613 $11.468
Number of accumulation units
outstanding at end of period 412,579 520,438 14,463 13
AETNA BALANCED VP, INC.
Value at beginning of period $15.300 $13.215 $13.054(2)
Value at end of period $17.208 $15.300 $13.215
Number of accumulation units
outstanding at end of period 2,306,988 2,019,116 57,737
AETNA BOND VP
Value at beginning of period $12.054 $11.258 $10.500 $10.000(1)
Value at end of period $11.846 $12.054 $11.258 $10.500
Number of accumulation units
outstanding at end of period 1,191,777 802,876 64,958 679
AETNA CROSSROADS VP
Value at beginning of period $13.600 $12.970 $12.945(3)
Value at end of period $14.840 $13.600 $12.970
Number of accumulation units
outstanding at end of period 122,393 168,964 2,786
AETNA GROWTH VP
Value at beginning of period $17.989 $12.674(4)
Value at end of period $24.039 $17.989
Number of accumulation units
outstanding at end of period 550,970 194,081
AETNA GROWTH AND
INCOME VP
Value at beginning of period $16.713 $14.744 $11.465 $10.000(1)
Value at end of period $19.429 $16.713 $14.744 $11.465
Number of accumulation units
outstanding at end of period 12,501,599 9,871,041 362,675 13,125
AETNA HIGH YIELD VP
Value at beginning of period $9.228 $9.149(5)
Value at end of period $9.781 $9.228
Number of accumulation units
outstanding at end of period 11,322 9,211
AETNA INDEX PLUS LARGE
CAP VP
Value at beginning of period $18.880 $14.491 $14.289(6)
Value at end of period $23.235 $18.880 $14.491
Number of accumulation units
Outstanding at end of period 1,544,113 648,540 29
AETNA INDEX PLUS MID
CAP VP
Value at beginning of period $10.909 $7.996(5)
Value at end of period $12.508 $10.909
Number of accumulation units
outstanding at end of period 62,742 24,016
AETNA INDEX PLUS SMALL
CAP VP
Value at beginning of period $8.831 $9.580(7)
Value at end of period $9.686 $8.831
Number of accumulation units
outstanding at end of period 63,842 27,047
AETNA INTERNATIONAL VP
Value at beginning of period $9.781 $10.061(8)
Value at end of period $14.656 $9.781
Number of accumulation units
outstanding at end of period 54,742 14,898
AETNA LEGACY VP
Value at beginning of period $13.084 $12.358 $12.242(9)
Value at end of period $13.874 $13.084 $12.358
Number of accumulation units
outstanding at end of period 197,881 190,406 64
</TABLE>
75
<PAGE>
Condensed Financial Information (continued)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
1999 1998 1997 1996
---- ---- ---- ----
AETNA MONEY MARKET VP
<S> <C> <C> <C> <C>
Value at beginning of period $11.202 $10.729 $10.274 $10.000(1)
Value at end of period $11.654 $11.202 $10.729 $10.274
Number of accumulation units
outstanding at end of period 2,142,834 1,039,909 65,496 1,551
AETNA REAL ESTATE
SECURITIES VP
Value at beginning of period $8.888 $9.214(5)
Value at end of period $8.429 $8.888
Number of accumulation units
outstanding at end of period 11,150 6,500
AETNA SMALL COMPANY VP
Value at beginning of period $13.692 $14.234(10)
Value at end of period $17.737 $13.692
Number of accumulation units
outstanding at end of period 405,202 404,068
AETNA VALUE OPPORTUNITY VP
Value at beginning of period $16.099 $12.765(4)
Value at end of period $19.059 $16.099
Number of accumulation units
outstanding at end of period 94,639 98,683
AIM V.I. CAPITAL
APPRECIATION FUND
Value at beginning of period $9.821(11)
Value at end of period $13.777
Number of accumulation units
outstanding at end of period 13,134
AIM V.I. GROWTH FUND
Value at beginning of period $9.382(11)
Value at end of period $12.090
Number of accumulation units
outstanding at end of period 32,099
AIM V.I. GROWTH AND
INCOME FUND
Value at beginning of period $9.939(11)
Value at end of period $11.736
Number of accumulation units
outstanding at end of period 160,745
AIM V.I. VALUE FUND
Value at beginning of period $9.747(11)
Value at end of period $11.526
Number of accumulation units
outstanding at end of period 43,172
CALVERT SOCIAL BALANCED
PORTFOLIO
Value at beginning of period $14.945 $12.983 $12.982(12)
Value at end of period $16.606 $14.945 $12.983
Number of accumulation units
outstanding at end of period 178,990 108,344 25,620
FIDELITY VIP EQUITY-INCOME
PORTFOLIO
Value at beginning of period $15.160 $13.718 $13.438(12)
Value at end of period $15.960 $15.160 $13.718
Number of accumulation units
outstanding at end of period 363,066 409,327 29,808
FIDELITY VIP GROWTH
PORTFOLIO
Value at beginning of period $17.489 $12.663 $10.358 $10.000(1)
Value at end of period $23.797 $17.489 $12.663 $10.358
Number of accumulation units
outstanding at end of period 1,055,742 581,798 61,043 21
FIDELITY VIP OVERSEAS
PORTFOLIO
Value at beginning of period $13.143 $11.774 $11.818(6)
Value at end of period $18.559 $13.143 $11.774
Number of accumulation units
outstanding at end of period 53,000 44,183 1,294
FIDELITY VIP II CONTRAFUND[Reg TM]
PORTFOLIO
Value at beginning of period $17.776 $13.814 $11.239 $10.000(1)
Value at end of period $21.868 $17.776 $13.814 $11.239
Number of accumulation units
outstanding at end of period 1,508,807 1,138,180 139,417 20,020
</TABLE>
76
<PAGE>
Condensed Financial Information (continued)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
1999 1998 1997 1996
---- ---- ---- ----
<S> <C> <C> <C> <C>
JANUS ASPEN AGGRESSIVE
GROWTH PORTFOLIO
Value at beginning of period $14.096 $10.604 $9.507 $10.000(1)
Value at end of period $31.457 $14.096 $10.604 $9.507
Number of accumulation units
outstanding at end of period 1,788,826 997,760 106,350 17,055
JANUS ASPEN BALANCED
PORTFOLIO
Value at beginning of period $17.841 $13.420 $13.490(12)
Value at end of period $22.390 $17.841 $13.420
Number of accumulation units
outstanding at end of period 695,263 184,550 5,846
JANUS ASPEN FLEXIBLE
INCOME PORTFOLIO
Value at beginning of period $13.026 $12.059 $10.857(13)
Value at end of period $13.104 $13.026 $12.059
Number of accumulation units
outstanding at end of period 460,612 414,151 12,527
JANUS ASPEN GROWTH
PORTFOLIO
Value at beginning of period $17.770 $13.231 $10.929(13)
Value at end of period $25.332 $17.770 $13.231
Number of accumulation units
outstanding at end of period 535,269 220,151 17,098
JANUS ASPEN WORLDWIDE
GROWTH PORTFOLIO
Value at beginning of period $17.545 $13.746 $11.366 $10.000(1)
Value at end of period $28.567 $17.545 $13.746 $11.366
Number of accumulation units
outstanding at end of period 2,675,141 2,151,202 207,630 36,305
LEXINGTON NATURAL
RESOURCES TRUST
Value at beginning of period $9.606 $12.072 $13.838(12)
Value at end of period $10.851 $9.606 $12.072
Number of accumulation units
outstanding at end of period 87,038 75,695 12,963
OPPENHEIMER GLOBAL
SECURITIES FUND/VA
Value at beginning of period $10.036 $9.484(14)
Value at end of period $15.747 $10.036
Number of accumulation units
outstanding at end of period 20,246 5,395
OPPENHEIMER STRATEGIC
BOND FUND/VA
Value at beginning of period $9.912 $9.991(8)
Value at end of period $10.091 $9.912
Number of accumulation units
outstanding at end of period 12,847 7,329
PPI MFS CAPITAL
OPPORTUNITIES PORTFOLIO
Value at beginning of period $15.644 $12.467 $12.287(6)
Value at end of period $23.045 $15.644 $12.467
Number of accumulation units
outstanding at end of period 416,660 291,492 68,968
PPI MFS EMERGING EQUITIES
PORTFOLIO
Value at beginning of period $12.750 $9.932 $10.054(6)
Value at end of period $19.045 $12.750 $9.932
Number of accumulation units
outstanding at end of period 2,526,497 2,223,125 180,890
PPI MFS RESEARCH GROWTH
PORTFOLIO
Value at beginning of period $10.619 $8.720 $8.890(6)
Value at end of period $13.040 $10.619 $8.720
Number of accumulation units
outstanding at end of period 854,700 741,693 55,616
PPI SCUDDER
INTERNATIONAL GROWTH
PORTFOLIO
Value at beginning of period $13.574 $11.512 $11.367(6)
Value at end of period $21.289 $13.574 $11.512
Number of accumulation units
outstanding at end of period 868,603 715,389 80,978
</TABLE>
77
<PAGE>
Condensed Financial Information (continued)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
1999 1998 1997 1996
---- ---- ---- ----
<S> <C> <C> <C> <C>
PPI T. ROWE PRICE GROWTH
EQUITY PORTFOLIO
Value at beginning of period $16.829 $13.321 $13.052(6)
Value at end of period $20.381 $16.829 $13.321
Number of accumulation units
outstanding at end of period 666,142 767,053 65,906
</TABLE>
- -----------------
(1) The initial accumulation unit value was established during May 1996 when
the fund became available under the contract, when funds were first
received in this option or when the applicable daily asset charge was
first utilized.
(2) Funds were first received in this option during July 1997.
(3) Funds were first received in this option during September 1997.
(4) Funds were first received in this option during January 1998.
(5) Funds were first received in this option during September 1998.
(6) Funds were first received in this option during November 1997.
(7) Funds were first received in this option during July 1998.
(8) Funds were first received in this option during May 1998.
(9) Funds were first received in this option during February 1997.
(10) Funds were first received in this option during February 1998.
(11) Funds were first received in this option during May 1999.
(12) Funds were first received in this option during October 1997.
(13) Funds were first received in this option during January 1997.
(14) Funds were first received in this option during August 1998.
78
<PAGE>
Condensed Financial Information
- --------------------------------------------------------------------------------
TABLE VI
FOR CONTRACTS ISSUED UNDER 403(b), 401(a) AND 401(k) PLANS
WITH TOTAL SEPARATE ACCOUNT CHARGES OF 1.05% and 1.10%
(Selected data for accumulation units outstanding throughout each period)
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
The condensed financial information presented below for each of the periods in
the three-year period ended December 31, 1999 (as applicable), is derived from
the financial statements of the separate account, which have been audited by
KPMG LLP, independent auditors. The financial statements and the independent
auditors' report thereon for the year ended December 31, 1999 are included in
the Statement of Additional Information.
<TABLE>
<CAPTION>
1.05% Total Charges 1.10% Total Charges
--------------------------------------------- --------------------------------------------------
1999 1998 1997 1999 1998 1997
---- ---- ---- ---- ---- ----
<S> <C> <C> <C> <C> <C> <C>
AETNA ASCENT VP
Value at beginning of period $14.039 $13.602 $11.629(1) $14.020 $13.590 $13,275(2)
Value at end of period $15.886 $14.039 $13.602 $15.857 $14.020 $13.590
Number of accumulation units
outstanding at end of period 33,325 55,886 24,508 29,411 9,573 42
AETNA BALANCED VP, INC.
Value at beginning of period $15.279 $13.204 $12.677(3) $15.259 $13.194 $12.915(2)
Value at end of period $17.177 $15.279 $13.204 $17.146 $15.259 $13.194
Number of accumulation units
outstanding at end of period 103,305 61,615 4,205 79,953 10,484 294
AETNA BOND VP
Value at beginning of period $12.038 $11.249 $10.587(1) $12.022 $11.240 $11.219(4)
Value at end of period $11.824 $12.038 $11.249 $11.803 $12.022 $11.240
Number of accumulation units
outstanding at end of period 54,350 50,220 11,619 24,571 2,532 6
AETNA CROSSROADS VP
Value at beginning of period $13.582 $12.959 $11.292(1) $13.564 $12.949 $12.904(2)
Value at end of period $14.813 $13.582 $12.959 $14.786 $13.564 $12.949
Number of accumulation units
outstanding at end of period 40,690 38,257 12,847 51,462 14,611 14
AETNA GROWTH VP
Value at beginning of period $17.974 $13.192 $13.184(5) $17.958 $13.188 $13.325(2)
Value at end of period $24.006 $17.974 $13.192 $23.973 $17.958 $13.188
Number of accumulation units
outstanding at end of period 44,979 23,219 31 14,643 1,761 37
AETNA GROWTH AND
INCOME VP
Value at beginning of period $16.691 $14.732 $12.312(1) $16.669 $14.720 $14.520(2)
Value at end of period $19.393 $16.691 $14.732 $19.358 $16.669 $14.720
Number of accumulation units
outstanding at end of period 341,405 326,490 44,425 143,472 33,836 570
AETNA HIGH YIELD VP
Value at beginning of period $9.225 $9.995(6) $9.222 $9.096(7)
Value at end of period $9.772 $9.225 $9.764 $9.222
Number of accumulation units
outstanding at end of period 447 110 51 10
AETNA INDEX PLUS LARGE
CAP VP
Value at beginning of period $18.859 $14.481 $14.043(3) $18.837 $14.472 $14.078(2)
Value at end of period $23.196 $18.859 $14.481 $23.158 $18.837 $14.472
Number of accumulation units
Outstanding at end of period 61,200 51,170 1,083 65,999 10,488 215
AETNA INDEX PLUS MID
CAP VP
Value at beginning of period $10.906 $9.624(8) $10.902 $9.772(9)
Value at end of period $12.498 $10.906 $12.487 $10.902
Number of accumulation units
outstanding at end of period 460 168 1,327 3
AETNA INDEX PLUS SMALL
CAP VP
Value at beginning of period $8.827 $9.530(8) $8.476(10)
Value at end of period $9.677 $8.827 $9.669
Number of accumulation units
outstanding at end of period 1,538 330 1,596
AETNA INTERNATIONAL VP
Value at beginning of period $9.778 $8.935(11) $9.800(10)
Value at end of period $14.643 $9.778 $14.631
Number of accumulation units
outstanding at end of period 417 182 767
</TABLE>
79
<PAGE>
Condensed Financial Information (continued)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
1.05% Total Charges
--------------------------------------------------
1999 1998 1997
---- ---- ----
<S> <C> <C> <C>
AETNA LEGACY VP
Value at beginning of period $13.067 $12.348 $11.009(1)
Value at end of period $13.848 $13.067 $12.348
Number of accumulation units
outstanding at end of period 38,755 62,453 6,221
AETNA MONEY MARKET VP
Value at beginning of period $11.187 $10.720 $10.322(1)
Value at end of period $11.632 $11.187 $10.720
Number of accumulation units
outstanding at end of period 47,453 43,461 1,863
AETNA REAL ESTATE
SECURITIES VP
Value at beginning of period $8.885 $9.899(6)
Value at end of period $8.421 $8.885
Number of accumulation units
outstanding at end of period 171 131
AETNA SMALL COMPANY VP
Value at beginning of period $13.680 $13.674 $12.485(3)
Value at end of period $17.713 $13.680 $13.674
Number of accumulation units
outstanding at end of period 6,350 5,235 125
AETNA VALUE OPPORTUNITY VP
Value at beginning of period $16.085 $13.281 $12.796(5)
Value at end of period $19.033 $16.085 $13.281
Number of accumulation units
outstanding at end of period 4,556 3,648 17
AIM V.I. CAPITAL
APPRECIATION FUND
Value at beginning of period $9.877(13)
Value at end of period $13.772
Number of accumulation units
outstanding at end of period 611
AIM V.I. GROWTH FUND
Value at beginning of period $9.632(13)
Value at the of period $12.085
Number of accumulation units
outstanding at end of period 957
AIM V.I. GROWTH AND
INCOME FUND
Value at beginning of period $9.842(15)
Value at end of period $11.732
Number of accumulation units
outstanding at end of period 10,546
AIM V.I. VALUE FUND
Value at beginning of period $10.384(14)
Value at end of period $11.522
Number of accumulation units
outstanding at end of period 3,085
CALVERT SOCIAL BALANCED
PORTFOLIO
Value at beginning of period $14.926 $12.972 $12.278(3)
Value at end of period $16.576 $14.926 $12.972
Number of accumulation units
outstanding at end of period 8,581 25,822 766
FIDELITY VIP EQUITY-INCOME
PORTFOLIO
Value at beginning of period $15.140 $13.706 $11.435(1)
Value at end of period $15.931 $15.140 $13.706
Number of accumulation units
outstanding at end of period 62,832 81,062 34,010
FIDELITY VIP GROWTH
PORTFOLIO
Value at beginning of period $17.466 $12.653 $10.988(1)
Value at end of period $23.754 $17.466 $12.653
Number of accumulation units
outstanding at end of period 96,712 65,095 22,425
FIDELITY VIP OVERSEAS
PORTFOLIO
Value at beginning of period $13.126 $11.764 $10.798(1)
Value at end of period $18.525 $13.126 $11.764
Number of accumulation units
outstanding at end of period 7,698 9,113 3,858
<CAPTION>
1.10% Total Charges
--------------------------------------------------------
1999 1998 1997
---- ---- ----
<S> <C> <C> <C>
AETNA LEGACY VP
Value at beginning of period $13.050 $12.338 $12.223(12)
Value at end of period $13.823 $13.050 $12.338
Number of accumulation units
outstanding at end of period 23,031 3,369 851
AETNA MONEY MARKET VP
Value at beginning of period $11.172 $10.711 $10.663(2)
Value at end of period $11.611 $11.172 $10.711
Number of accumulation units
outstanding at end of period 25,798 6,784 145
AETNA REAL ESTATE
SECURITIES VP
Value at beginning of period $8.882 $9.159(7)
Value at end of period $8.414 $8.882
Number of accumulation units
outstanding at end of period 383 16
AETNA SMALL COMPANY VP
Value at beginning of period $13.668 $13.669 $13.331(2)
Value at end of period $17.689 $13.668 $13.669
Number of accumulation units
outstanding at end of period 7,548 6,323 650
AETNA VALUE OPPORTUNITY VP
Value at beginning of period $16.071 $13.276 $12.952(2)
Value at end of period $19.007 $16.071 $13.276
Number of accumulation units
outstanding at end of period 1,480 1,219 46
AIM V.I. CAPITAL
APPRECIATION FUND
Value at beginning of period $10.778(14)
Value at end of period $13.767
Number of accumulation units
outstanding at end of period 251
AIM V.I. GROWTH FUND
Value at beginning of period $10.484(14)
Value at the of period $12.081
Number of accumulation units
outstanding at end of period 34
AIM V.I. GROWTH AND
INCOME FUND
Value at beginning of period $10.373(14)
Value at end of period $11.728
Number of accumulation units
outstanding at end of period 281
AIM V.I. VALUE FUND
Value at beginning of period $10.159(14)
Value at end of period $11.518
Number of accumulation units
outstanding at end of period 500
CALVERT SOCIAL BALANCED
PORTFOLIO
Value at beginning of period $14.906 $13.068(16)
Value at end of period $16.546 $14.906
Number of accumulation units
outstanding at end of period 10,085 1,048
FIDELITY VIP EQUITY-INCOME
PORTFOLIO
Value at beginning of period $15.120 $13.695 $13.343(2)
Value at end of period $15.902 $15.120 $13.695
Number of accumulation units
outstanding at end of period 39,294 4,490 589
FIDELITY VIP GROWTH
PORTFOLIO
Value at beginning of period $17.443 $12.643 $12.740(2)
Value at end of period $23.710 $17.443 $12.643
Number of accumulation units
outstanding at end of period 59,684 13,478 416
FIDELITY VIP OVERSEAS
PORTFOLIO
Value at beginning of period $13.108 $11.754 $11.651(4)
Value at end of period $18.492 $13.108 $11.754
Number of accumulation units
outstanding at end of period 9,933 1,860 5
</TABLE>
80
<PAGE>
Condensed Financial Information (continued)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
1.05% Total Charges 1.10% Total Charges
-------------------------------------------------- --------------------------------------
1999 1998 1997 1999 1998 1997
---- ---- ---- ---- ---- ----
<S> <C> <C> <C> <C> <C> <C>
FIDELITY VIP II
CONTRAFUND[Reg TM] PORTFOLIO
Value at beginning of period $17.753 $13.802 $12.865(3) $17.729 $13.791 $13.502(2)
Value at end of period $21.828 $17.753 $13.802 $21.789 $17.729 $13.791
Number of accumulation units
outstanding at end of period 82,955 90,950 9,650 45,203 5,768 110
JANUS ASPEN AGGRESSIVE
GROWTH PORTFOLIO
Value at beginning of period $14.077 $10.596 $8.894(1) $14.059 $10.587 $10.337(2)
Value at end of period $31.400 $14.077 $10.596 $31.343 $14.059 $10.587
Number of accumulation units
outstanding at end of period 157,088 114,249 38,785 64,071 3,032 269
JANUS ASPEN BALANCED
PORTFOLIO
Value at beginning of period $17.818 $13.409 $11.587(1) $17.794 $13.398 $13.138(2)
Value at end of period $22.350 $17.818 $13.409 $22.309 $17.794 $13.398
Number of accumulation units
outstanding at end of period 78,372 37,434 14,527 28,646 4,709 256
JANUS ASPEN FLEXIBLE
INCOME PORTFOLIO
Value at beginning of period $13.009 $12.049 $11.571(3) $12.992 $12.039 $11.872(2)
Value at end of period $13.080 $13.009 $12.049 $13.056 $12.992 $12.039
Number of accumulation units
outstanding at end of period 25,083 13,507 700 7,040 2,780 12
JANUS ASPEN GROWTH
PORTFOLIO
Value at beginning of period $17.747 $13.220 $13.078(3) $17.723 $13.209 $12.995(2)
Value at end of period $25.286 $17.747 $13.220 $25.240 $17.723 $13.209
Number of accumulation units
outstanding at end of period 49,883 45,804 7,726 25,768 2,555 498
JANUS ASPEN WORLDWIDE
GROWTH PORTFOLIO
Value at beginning of period $17.522 $13.735 $12.089(1) $17.499 $13.724 $13.565(2)
Value at end of period $28.515 $17.522 $13.735 $28.463 $17.499 $13.724
Number of accumulation units
outstanding at end of period 199,510 202,768 59,673 65,151 14,918 971
LEXINGTON NATURAL
RESOURCES TRUST
Value at beginning of period $9.594 $12.062 $12.407(3) $9.581 $8.980(11)
Value at end of period $10.831 $9.594 $12.062 $10.812 $9.581
Number of accumulation units
outstanding at end of period 3,378 2,961 791 1,354 31
OPPENHEIMER GLOBAL
SECURITIES FUND/VA
Value at beginning of period $10.032 $9.801(6) $10.029 $10.160(8)
Value at end of period $15.734 $10.032 $15.721 $10.029
Number of accumulation units
outstanding at end of period 494 180 966 27
OPPENHEIMER STRATEGIC
BOND FUND/VA
Value at beginning of period $9.908 $9.582(17) $9.905 $9.720(7)
Value at end of period $10.082 $9.908 $10.074 $9.905
Number of accumulation units
outstanding at end of period 243 5 783 22
PPI MFS CAPITAL
OPPORTUNITIES PORTFOLIO
Value at beginning of period $15.623 $12.457 $12.277(2) $15.602 $14.846(18)
Value at end of period $23.003 $15.623 $12.457 $22.961 $15.602
Number of accumulation units
outstanding at end of period 10,435 25,784 1,514 3,853 1,488
PPI MFS EMERGING EQUITIES
PORTFOLIO
Value at beginning of period $12.733 $9.923 $10.046(2) $12.716 $9.915 $10.039(2)
Value at end of period $19.011 $12.733 $9.923 $18.976 $12.716 $9.915
Number of accumulation units
outstanding at end of period 110,360 102,952 26,577 34,563 6,017 16
PPI MFS RESEARCH GROWTH
PORTFOLIO
Value at beginning of period $10.605 $8.713 $8.883(2) $10.591 $10.008(19)
Value at end of period $13.016 $10.605 $8.713 $12.993 $10.591
Number of accumulation units
outstanding at end of period 22,552 40,974 1,465 20,445 121
</TABLE>
81
<PAGE>
<TABLE>
<CAPTION>
1.05% Total Charges 1.10% Total Charges
--------------------------------------- -----------------------------------------
1999 1998 1997 1999 1998 1997
---- ---- ---- ---- ---- ----
<S> <C> <C> <C> <C> <C> <C>
PPI SCUDDER
INTERNATIONAL GROWTH
PORTFOLIO
Value at beginning of period $13.556 $11.503 $11.358(2) $13.538 $11.633(16)
Value at end of period $21.250 $13.556 $11.503 $21.211 $13.538
Number of accumulation units
outstanding at end of period 21,942 29,581 8,780 7,463 3,300
PPI T. ROWE PRICE GROWTH
EQUITY PORTFOLIO
Value at beginning of period $16.806 $13.310 $13.042(2) $16.784 $14.258(20)
Value at end of period $20.344 $16.806 $13.310 $20.307 $16.784
Number of accumulation units
outstanding at end of period 61,161 51,412 18,429 23,320 2,769
</TABLE>
- -----------------
(1) Funds were first received in this option during February 1997.
(2) Funds were first received in this option during November 1997.
(3) Funds were first received in this option during July 1997.
(4) Funds were first received in this option during December 1997.
(5) Funds were first received in this option during August 1997.
(6) Funds were first received in this option during June 1998.
(7) Funds were first received in this option during September 1998.
(8) Funds were first received in this option during July 1998.
(9) Funds were first received in this option during December 1998.
(10) Funds were first received in this option during February 1999.
(11) Funds were first received in this option during August 1998.
(12) Funds were first received in this option during January 1997.
(13) Funds were first received in this option during May 1999.
(14) Funds were first received in this option during July 1999.
(15) Funds were first received in this option during June 1999.
(16) Funds were first received in this option during January 1998.
(17) Funds were first received in this option during October 1998.
(18) Funds were first received in this option during April 1998.
(19) Funds were first received in this option during May 1998.
(20) Funds were first received in this option during February 1998.
82
<PAGE>
Condensed Financial Information
- --------------------------------------------------------------------------------
TABLE VII
FOR CONTRACTS ISSUED UNDER 403(b), 401(a) AND 401(k) PLANS
WITH TOTAL SEPARATE ACCOUNT CHARGES OF 1.15%
(Selected data for accumulation units outstanding throughout each period)
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
The condensed financial information presented below for each of the periods in
the four-year period ended December 31, 1999 (as applicable), is derived from
the financial statements of the separate account, which have been audited by
KPMG LLP, independent auditors. The financial statements and the independent
auditors' report thereon for the year ended December 31, 1999 are included in
the Statement of Additional Information.
<TABLE>
<CAPTION>
1.15% Total Charges
-------------------------------------------------------
1999 1998 1997 1996
---- ---- ---- ----
<S> <C> <C> <C> <C>
AETNA ASCENT VP
Value at beginning of period $14.002 $13.579 $11.525(1)
Value at end of period $15.828 $14.002 $13.579
Number of accumulation units outstanding at end
of period 43,436 26,911 6,392
AETNA BALANCED VP, INC.
Value at beginning of period $15.239 $13.183 $11.130(1)
Value at end of period $17.115 $15.239 $13.183
Number of accumulation units outstanding at end
of period 224,431 275,681 250,060
AETNA BOND VP
Value at beginning of period $12.006 $11.231 $10.476(1)
Value at end of period $11.781 $12.006 $11.231
Number of accumulation units outstanding at end
of period 88,391 106,179 89,517
AETNA CROSSROADS VP
Value at beginning of period $13.546 $12.938 $11.182(1)
Value at end of period $14.759 $13.546 $12.938
Number of accumulation units outstanding at end
of period 34,308 24,882 7,129
AETNA GROWTH VP
Value at beginning of period $17.943 $13.183 $13.348(2)
Value at end of period $23.940 $17.943 $13.183
Number of accumulation units outstanding at end
of period 25,113 14,989 118
AETNA GROWTH AND INCOME VP
Value at beginning of period $16.467 $14.708 $11.805(1)
Value at end of period $19.323 $16.647 $14.708
Number of accumulation units outstanding at end
of period 514,328 581,226 508,938
AETNA HIGH YIELD VP
Value at beginning of period $9.218 $9.959(3)
Value at end of period $9.756 $9.218
Number of accumulation units outstanding at end
of period 363 1,725
AETNA INDEX PLUS LARGE CAP VP
Value at beginning of period $18.815 $14.463 $11.663(1)
Value at end of period $23.120 $18.815 $14.463
Number of accumulation units outstanding at end
of period 49,777 26,210 5,517
AETNA INDEX PLUS MID CAP VP
Value at beginning of period $10.898 $9.105(4)
Value at end of period $12.477 $10.898
Number of accumulation units outstanding at end
of period 933 96
AETNA INDEX PLUS SMALL CAP VP
Value at beginning of period $8.821 $9.569(5)
Value at end of period $9.661 $8.821
Number of accumulation units outstanding at end
of period 3,035 1,234
AETNA INTERNATIONAL VP
Value at beginning of period $9.771 $9.763(4)
Value at end of period $14.618 $9.771
Number of accumulation units outstanding at end
of period 726 167
AETNA LEGACY VP
Value at beginning of period $13.033 $12.328 $10.927(1)
Value at end of period $13.798 $13.033 $12.328
Number of accumulation units outstanding at end
of period 19,762 23,052 21,027
</TABLE>
83
<PAGE>
Condensed Financial Information (continued)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
1.15% Total Charges
------------------------------------------------------------------------
1999 1998 1997 1996
---- ---- ---- ----
<S> <C> <C> <C> <C>
AETNA MONEY MARKET VP
Value at beginning of period $11.158 $10.702 $10.264 $10.000(6)
Value at end of period $11.590 $11.158 $10.702 $10.264
Number of accumulation units outstanding at end
of period 87,883 76,594 44,265 9,856
AETNA REAL ESTATE SECURITIES VP
Value at beginning of period $8.879 $10.034(5)
Value at end of period $8.407 $8.879
Number of accumulation units outstanding at end
of period 3,933 2,845
AETNA SMALL COMPANY VP
Value at beginning of period $13.657 $13.664 $13.709(2)
Value at end of period $17.665 $13.657 $13.664
Number of accumulation units outstanding at end
of period 12,873 9,141 119
AETNA VALUE OPPORTUNITY VP
Value at beginning of period $16.057 $13.271 $13.244(2)
Value at end of period $18.982 $16.057 $13.271
Number of accumulation units outstanding at end
of period 5,973 4,025 47
AIM V.I. CAPITAL APPRECIATION FUND
Value at beginning of period $9.693(7)
Value at end of period $13.762
Number of accumulation units outstanding at end
of period 518
AIM V.I. GROWTH FUND
Value at beginning of period $9.380(7)
Value at end of period $12.077
Number of accumulation units outstanding at end
of period 1,062
AIM V.I. GROWTH AND INCOME FUND
Value at beginning of period $9.204(8)
Value at end of period $11.724
Number of accumulation units outstanding at end
of period 464
AIM V.I. VALUE FUND
Value at beginning of period $9.747(7)
Value at end of period $11.514
Number of accumulation units outstanding at end
of period 115
CALVERT SOCIAL BALANCED PORTFOLIO
Value at beginning of period $14.886 $12.951 $11.071(1)
Value at end of period $16.515 $14.886 $12.951
Number of accumulation units outstanding at end
of period 53,770 48,553 37,416
FIDELITY VIP EQUITY-INCOME PORTFOLIO
Value at beginning of period $15.100 $13.684 $10.805 $10.000(6)
Value at end of period $15.873 $15.100 $13.684 $10.805
Number of accumulation units outstanding at end
of period 77,294 62,313 40,977 4,215
FIDELITY VIP GROWTH PORTFOLIO
Value at beginning of period $17.420 $12.632 $10.348 $10.000(6)
Value at end of period $23.667 $17.420 $12.632 $10.348
Number of accumulation units outstanding at end
of period 107,839 70,232 43,953 4,472
FIDELITY VIP OVERSEAS PORTFOLIO
Value at beginning of period $13.091 $11.745 $10.662(9)
Value at end of period $18.458 $13.091 $11.745
Number of accumulation units outstanding at end
of period 10,801 9,778 6,203
FIDELITY VIP II CONTRAFUND[Reg TM] PORTFOLIO
Value at beginning of period $17.706 $13.780 $11.228 $10.000(6)
Value at end of period $21.749 $17.706 $13.780 $11.228
Number of accumulation units outstanding at end
of period 112,281 85,591 56,042 4,169
JANUS ASPEN AGGRESSIVE GROWTH
PORTFOLIO
Value at beginning of period $14.040 $10.578 $9.498 $10.000(6)
Value at end of period $31.286 $14.040 $10.578 $9.498
Number of accumulation units outstanding at end
of period 150,087 103,123 77,340 4,932
JANUS ASPEN BALANCED PORTFOLIO
Value at beginning of period $17.771 $13.387 $11.090 $10.000(6)
Value at end of period $22.269 $17.771 $13.387 $11.090
Number of accumulation units outstanding at end
of period 71,007 36,442 15,461 13
</TABLE>
84
<PAGE>
Condensed Financial Information (continued)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
1.15% Total Charges
------------------------------------------------------------------
1999 1998 1997 1996
---- ---- ---- ----
<S> <C> <C> <C> <C>
JANUS ASPEN FLEXIBLE INCOME PORTFOLIO
Value at beginning of period $12.975 $12.029 $10.882(1)
Value at end of period $13.032 $12.975 $12.029
Number of accumulation units outstanding at end
of period 15,890 8,869 4,140
JANUS ASPEN GROWTH PORTFOLIO
Value at beginning of period $17.700 $13.198 $11.138(1)
Value at end of period $25.194 $17.700 $13.198
Number of accumulation units outstanding at end
of period 56,211 39,188 22,179
JANUS ASPEN WORLDWIDE GROWTH
PORTFOLIO
Value at beginning of period $17.476 $13.712 $11.355 $10.000(6)
Value at end of period $28.411 $17.476 $13.712 $11.355
Number of accumulation units outstanding at end
of period 163,390 130,326 77,286 9
LEXINGTON NATURAL RESOURCES TRUST
Value at beginning of period $9.568 $12.042 $11.865(1)
Value at end of period $10.792 $9.568 $12.042
Number of accumulation units outstanding at end
of period 8,711 12,059 12,454
OPPENHEIMER GLOBAL SECURITIES FUND/VA
Value at beginning of period $10.025 $9.974(5)
Value at end of period $15.707 $10.025
Number of accumulation units outstanding at end
of period 775 295
OPPENHEIMER STRATEGIC BOND FUND/VA
Value at beginning of period $9.902 $10.052(5)
Value at end of period $10.065 $9.902
Number of accumulation units outstanding at end
of period 1,186 689
PPI MFS CAPITAL OPPORTUNITIES
PORTFOLIO
Value at beginning of period $15.582 $12.437 $12.258(9)
Value at end of period $22.919 $15.582 $12.437
Number of accumulation units outstanding at end
of period 77,458 75,920 79,382
PPI MFS EMERGING EQUITIES PORTFOLIO
Value at beginning of period $12.699 $9.907 $10.031(9)
Value at end of period $18.942 $12.699 $9.907
Number of accumulation units outstanding at end
of period 200,163 196,772 165,668
PPI MFS RESEARCH GROWTH PORTFOLIO
Value at beginning of period $10.577 $8.698 $8.869(9)
Value at end of period $12.969 $10.577 $8.698
Number of accumulation units outstanding at end
of period 129,349 135,559 122,863
PPI SCUDDER INTERNATIONAL GROWTH
PORTFOLIO
Value at beginning of period $13.520 $11.484 $11.341(9)
Value at end of period $21.173 $13.520 $11.484
Number of accumulation units outstanding at end
of period 80,398 88,163 77,528
PPI T. ROWE PRICE GROWTH EQUITY
PORTFOLIO
Value at beginning of period $16.762 $13.288 $13.021(9)
Value at end of period $20.270 $16.762 $13.288
Number of accumulation units outstanding at end
of period 62,597 60,127 42,110
</TABLE>
- -----------------
(1) Funds were first received in this option during January 1997.
(2) Funds were first received in this option during September 1997.
(3) Funds were first received in this option during June 1998.
(4) Funds were first received in this option during August 1998.
(5) Funds were first received in this option during July 1998.
(6) The initial accumulation unit value was established during May 1996 when
the fund became available under the contract, when funds were first received
in this option or when the applicable daily asset charge was first utilized.
(7) Funds were first received in this option during May 1999.
(8) Funds were first received in this option during August 1999.
(9) Funds were first received in this option during November 1997.
85
<PAGE>
Condensed Financial Information
- --------------------------------------------------------------------------------
TABLE VIII
FOR CONTRACTS ISSUED UNDER 403(b), 401(a) AND 401(k) PLANS
WITH TOTAL SEPARATE ACCOUNT CHARGES OF 1.20%
AND THOSE ISSUED SINCE 1996 WITH TOTAL SEPARATE ACCOUNT CHARGES OF 1.25%
(Selected data for accumulation units outstanding throughout each period)
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
The condensed financial information presented below for each of the periods in
the three-year period ended December 31, 1999 (as applicable), is derived from
the financial statements of the separate account, which have been audited by
KPMG LLP, independent auditors. The financial statements and the independent
auditors' report thereon for the year ended December 31, 1999 are included in
the Statement of Additional Information.
<TABLE>
<CAPTION>
1.20% Total Charges Issued Since 1996 with 1.25% Total Charges
------------------------------------ -----------------------------------------------
1999 1998 1997 1999 1998 1997
---- ---- ---- ---- ---- ----
<S> <C> <C> <C> <C> <C> <C>
AETNA ASCENT VP
Value at beginning of period $13.983 $13.587(1) $13.965 $13.557 $12.564(2)
Value at end of period $15.799 $13.983 $15.770 $13.965 $13.557
Number of accumulation units
outstanding at end of period 47,132 90,247 1,617 1,249 253
AETNA BALANCED VP, INC.
Value at beginning of period $15.219 $13.676(3) $15.199 $13.161 $11.921(2)
Value at end of period $17.083 $15.219 $17.052 $15.199 $13.161
Number of accumulation units
outstanding at end of period 33,948 33,673 2,089 1,535 133
AETNA BOND VP
Value at beginning of period $11.990 $11.283(3) $11.975 $11.217(1)
Value at end of period $11.760 $11.990 $11.738 $11.975
Number of accumulation units
outstanding at end of period 26,798 23,608 521 1,197
AETNA CROSSROADS VP
Value at beginning of period $13.528 $12.915(1) $13.510 $12.917 $12.024(2)
Value at end of period $14.732 $13.528 $14.705 $13.510 $12.917
Number of accumulation units
outstanding at end of period 436,389 499,874 9,107 8,075 93
AETNA GROWTH VP
Value at beginning of period $17.927 $14.173(3) $17.912 $12.876(1)
Value at end of period $23.908 $17.927 $23.875 $17.912
Number of accumulation units
outstanding at end of period 7,995 7,333 7,486 5,419
AETNA GROWTH AND INCOME VP
Value at beginning of period $16.625 $14.696 $13.746(4) $16.603 $14.684 $12.851(5)
Value at end of period $19.288 $16.625 $14.696 $19.253 $16.603 $14.684
Number of accumulation units
outstanding at end of period 192,381 224,761 25 35,468 35,133 1,646
AETNA HIGH YIELD VP
Value at beginning of period $9.215 $9.935(6) $9.348(7)
Value at end of period $9.748 $9.215 $9.739
Number of accumulation units
outstanding at end of period 119 132 260
AETNA INDEX PLUS LARGE CAP VP
Value at beginning of period $18.794 $14.453 $13.642(4) $18.772 $14.444 $14.070(8)
Value at end of period $23.082 $18.794 $14.453 $23.044 $18.772 $14.444
Number of accumulation units
outstanding at end of period 32,936 28,911 24 6,043 594 10
AETNA INDEX PLUS MID CAP VP
Value at beginning of period $10.894 $9.662(6) $10.154(9)
Value at end of period $12.466 $10.894 $12.455
Number of accumulation units
outstanding at end of period 1,115 452 1,234
AETNA INDEX PLUS SMALL CAP VP
Value at beginning of period $8.818 $9.244(6)
Value at end of period $9.653 $8.818
Number of accumulation units
outstanding at end of period 1,733 989
AETNA INTERNATIONAL VP
Value at beginning of period $9.768 $9.973(6) $10.086(9)
Value at end of period $14.606 $9.768 $14.594
Number of accumulation units
outstanding at end of period 354 123 126
AETNA LEGACY VP
Value at beginning of period $13.015 $12.606(3) $12.998 $12.308 $12.362(10)
Value at end of period $13.773 $13.015 $13.748 $12.998 $12.308
Number of accumulation units
outstanding at end of period 27,715 61,973 5,897 5,866 2
</TABLE>
86
<PAGE>
Condensed Financial Information (continued)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
1.20% Total Charges
----------------------------------------------------
1999 1998 1997
---- ---- ----
<S> <C> <C> <C>
AETNA MONEY MARKET VP
Value at beginning of period $11.143 $10.761(3)
Value at end of period $11.569 $11.143
Number of accumulation units
outstanding at end of period 40,450 15,147
AETNA REAL ESTATE SECURITIES VP
Value at beginning of period $8.876 $9.633(6)
Value at end of period $8.400 $8.876
Number of accumulation units
outstanding at end of period 914 372
AETNA SMALL COMPANY VP
Value at beginning of period $13.645 $14.380(3)
Value at end of period $17.641 $13.645
Number of accumulation units
outstanding at end of period 18,254 24,930
AETNA VALUE OPPORTUNITY VP
Value at beginning of period $16.044 $14.033(3)
Value at end of period $18.956 $16.044
Number of accumulation units
outstanding at end of period 12,127 12,115
AIM V.I. CAPITAL APPRECIATION
FUND
Value a beginning of period $10.195(11)
Value at end of period $13.758
Number of accumulation units
outstanding at end of period 218
AIM V.I. GROWTH FUND
Value a beginning of period $9.493(13)
Value at end of period $12.073
Number of accumulation units
outstanding at end of period 167
AIM V.I. GROWTH AND INCOME
FUND
Value a beginning of period $9.601(15)
Value at end of period $11.720
Number of accumulation units
outstanding at end of period 179
AIM V.I. VALUE FUND
Value a beginning of period $9.848(11)
Value at end of period $11.510
Number of accumulation units
outstanding at end of period 156
CALVERT SOCIAL BALANCED
PORTFOLIO
Value at beginning of period $14.867 $13.354(3)
Value at end of period $16.485 $14.867
Number of accumulation units
outstanding at end of period 6,433 2,926
FIDELITY VIP EQUITY-INCOME
PORTFOLIO
Value at beginning of period $15.080 $14.168(3)
Value at end of period $15.844 $15.080
Number of accumulation units
outstanding at end of period 21,440 13,584
FIDELITY VIP GROWTH PORTFOLIO
Value at beginning of period $17.397 $13.438(3)
Value at end of period $23.624 $17.397
Number of accumulation units
outstanding at end of period 55,527 58,305
FIDELITY VIP OVERSEAS PORTFOLIO
Value at beginning of period $13.074 $12.430(3)
Value at end of period $18.424 $13.074
Number of accumulation units
outstanding at end of period 2,471 5,797
FIDELITY VIP II CONTRAFUND[Reg TM]
PORTFOLIO
Value at beginning of period $17.683 $13.768 $12.889(2)
Value at end of period $21.710 $17.683 $13.768
Number of accumulation units
outstanding at end of period 29,986 29,528 27
JANUS ASPEN AGGRESSIVE GROWTH
PORTFOLIO
Value at beginning of period $14.022 $10.956(3)
Value at end of period $31,229 $14.022
Number of accumulation units
outstanding at end of period 67,583 43,050
<CAPTION>
Issued Since 1996 with 1.25% Total Charges
-----------------------------------------------------
1999 1998 1997
---- ---- ----
<S> <C> <C> <C>
AETNA MONEY MARKET VP
Value at beginning of period $11.128 $10.746(3)
Value at end of period $11.548 $11.128
Number of accumulation units
outstanding at end of period 11,404 6,649
AETNA REAL ESTATE SECURITIES VP
Value at beginning of period $8.830(11)
Value at end of period $8.393
Number of accumulation units
outstanding at end of period 1
AETNA SMALL COMPANY VP
Value at beginning of period $13.633 $13.203(1)
Value at end of period $17.617 $13.633
Number of accumulation units
outstanding at end of period 8,928 7,548
AETNA VALUE OPPORTUNITY VP
Value at beginning of period $16.030 $12.844(1)
Value at end of period $18.930 $16.030
Number of accumulation units
outstanding at end of period 2,022 1,234
AIM V.I. CAPITAL APPRECIATION
FUND
Value a beginning of period $12.638(12)
Value at end of period $13.753
Number of accumulation units
outstanding at end of period 17
AIM V.I. GROWTH FUND
Value a beginning of period $9.783(14)
Value at end of period $12.069
Number of accumulation units
outstanding at end of period 23
AIM V.I. GROWTH AND INCOME
FUND
Value a beginning of period $9.470(14)
Value at end of period $11.716
Number of accumulation units
outstanding at end of period 22
AIM V.I. VALUE FUND
Value a beginning of period
Value at end of period
Number of accumulation units
outstanding at end of period
CALVERT SOCIAL BALANCED
PORTFOLIO
Value at beginning of period $14.847 $12.930 $12.790(16)
Value at end of period $16.455 $14.847 $12.930
Number of accumulation units
outstanding at end of period 270 51 6
FIDELITY VIP EQUITY-INCOME
PORTFOLIO
Value at beginning of period $15.061 $13.661 $13.299(16)
Value at end of period $15.815 $15.061 $13.661
Number of accumulation units
outstanding at end of period 11,533 8,741 6
FIDELITY VIP GROWTH PORTFOLIO
Value at beginning of period $17.374 $12.612 $11.704(2)
Value at end of period $23.581 $17.374 $12.612
Number of accumulation units
outstanding at end of period 23,472 9,906 214
FIDELITY VIP OVERSEAS PORTFOLIO
Value at beginning of period $13.056 $11.726 $12.512(8)
Value at end of period $18.391 $13.056 $11.726
Number of accumulation units
outstanding at end of period 6,718 688 22
FIDELITY VIP II CONTRAFUND[Reg TM]
PORTFOLIO
Value at beginning of period $17.659 $13.757 $11.902(5)
Value at end of period $21.670 $17.659 $13.757
Number of accumulation units
outstanding at end of period 13,062 11,737 390
JANUS ASPEN AGGRESSIVE GROWTH
PORTFOLIO
Value at beginning of period $14.003 $10.561 $9.646(2)
Value at end of period $31.172 $14.003 $10.561
Number of accumulation units
outstanding at end of period 17,486 4,812 262
</TABLE>
87
<PAGE>
Condensed Financial Information (continued)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
1.20% Total Charges
---------------------------------------------------
1999 1998 1997
---- ---- ----
<S> <C> <C> <C>
JANUS ASPEN BALANCED
PORTFOLIO
Value at beginning of period $17.747 $14.246(3)
Value at end of period $22.228 $17.747
Number of accumulation units
outstanding at end of period 22,044 21,105
JANUS ASPEN FLEXIBLE INCOME
PORTFOLIO
Value at beginning of period $12.958 $12.212(3)
Value at end of period $13.008 $12.958
Number of accumulation units
outstanding at end of period 6,648 13,990
JANUS ASPEN GROWTH PORTFOLIO
Value at beginning of period $17.677 $14.218(3)
Value at end of period $25.148 $17.677
Number of accumulation units
outstanding at end of period 32,113 19,754
JANUS ASPEN WORLDWIDE GROWTH
PORTFOLIO
Value at beginning of period $17.453 $13.701 $13.856(2)
Value at end of period $28.360 $17.453 $13.701
Number of accumulation units
outstanding at end of period 50,750 46,824 27
LEXINGTON NATURAL RESOURCES
TRUST
Value at beginning of period $9.556 $11.980(6)
Value at end of period $10.772 $9.556
Number of accumulation units
outstanding at end of period 2,437 2,826
OPPENHEIMER GLOBAL SECURITIES
FUND/VA
Value at beginning of period $9.897(17)
Value at end of period $15.694
Number of accumulation units
outstanding at end of period 132
OPPENHEIMER STRATEGIC BOND
FUND/VA
Value at beginning of period $9.898 $9.905(18)
Value at end of period $10.057 $9.898
Number of accumulation units
outstanding at end of period 89 57
PPI MFS CAPITAL OPPORTUNITIES
PORTFOLIO
Value at beginning of period $15.561 $13.387(3)
Value at end of period $22.878 $15.561
Number of accumulation units
outstanding at end of period 19,495 19,782
PPI MFS EMERGING EQUITIES
PORTFOLIO
Value at beginning of period $12.683 $11.093(3)
Value at end of period $18.907 $12.683
Number of accumulation units
outstanding at end of period 69,822 88,261
PPI MFS RESEARCH GROWTH
PORTFOLIO
Value at beginning of period $10.563 $9.310(3)
Value at end of period $12.945 $10.563
Number of accumulation units
outstanding at end of period 33,672 49,879
PPI SCUDDER INTERNATIONAL
GROWTH PORTFOLIO
Value at beginning of period $13.502 $12.274(3)
Value at end of period $21.134 $13.502
Number of accumulation units
outstanding at end of period 15,623 13,604
PPI T. ROWE PRICE GROWTH
EQUITY PORTFOLIO
Value at beginning of period $16.740 $14.232(3)
Value at end of period $20.233 $16.740
Number of accumulation units
outstanding at end of period 24,522 45,971
<CAPTION>
Issued Since 1996 with 1.25% Total Charges
--------------------------------------------------------
1999 1998 1997
---- ---- ----
<S> <C> <C> <C>
JANUS ASPEN BALANCED
PORTFOLIO
Value at beginning of period $17.724 $13.370(1)
Value at end of period $22.188 $17.724
Number of accumulation units
outstanding at end of period 7,932 798
JANUS ASPEN FLEXIBLE INCOME
PORTFOLIO
Value at beginning of period $12.940 $12.112(1)
Value at end of period $12.985 $12.940
Number of accumulation units
outstanding at end of period 1,754 126
JANUS ASPEN GROWTH PORTFOLIO
Value at beginning of period $17.653 $13.177 $13.270(8)
Value at end of period $25.103 $17.653 $13.177
Number of accumulation units
outstanding at end of period 9,890 5,365 32
JANUS ASPEN WORLDWIDE GROWTH
PORTFOLIO
Value at beginning of period $17.430 $13.690 $13.125(2)
Value at end of period $28.308 $17.430 $13.690
Number of accumulation units
outstanding at end of period 19,060 10,441 273
LEXINGTON NATURAL RESOURCES
TRUST
Value at beginning of period $9.543 $12.022 $11.717(2)
Value at end of period $10.753 $9.543 $12.022
Number of accumulation units
outstanding at end of period 71 53 35
OPPENHEIMER GLOBAL SECURITIES
FUND/VA
Value at beginning of period $11.614(13)
Value at end of period $15.681
Number of accumulation units
outstanding at end of period 8
OPPENHEIMER STRATEGIC BOND
FUND/VA
Value at beginning of period $9.869(7)
Value at end of period $10.048
Number of accumulation units
outstanding at end of period 9
PPI MFS CAPITAL OPPORTUNITIES
PORTFOLIO
Value at beginning of period $15.541 $12.394(1)
Value at end of period $22.836 $15.541
Number of accumulation units
outstanding at end of period 3,709 1,060
PPI MFS EMERGING EQUITIES
PORTFOLIO
Value at beginning of period $12.666 $9.891 $10.015(16)
Value at end of period $18.873 $12.666 $9.891
Number of accumulation units
outstanding at end of period 26,072 21,617 99
PPI MFS RESEARCH GROWTH
PORTFOLIO
Value at beginning of period $10.549 $8.597(1)
Value at end of period $12.922 $10.549
Number of accumulation units
outstanding at end of period 3,583 3,244
PPI SCUDDER INTERNATIONAL
GROWTH PORTFOLIO
Value at beginning of period $13.485 $11.465 $11.323(16)
Value at end of period $21.096 $13.485 $11.465
Number of accumulation units
outstanding at end of period 3,170 2,493 189
PPI T. ROWE PRICE GROWTH
EQUITY PORTFOLIO
Value at beginning of period $16.718 $13.156((1)
Value at end of period $20.196 $16.718
Number of accumulation units
outstanding at end of period 1,434 1,239
</TABLE>
- -----------------
(1) Funds were first received in this option during January 1998.
(2) Funds were first received in this option during June 1997.
(3) Funds were first received in this option during February 1998.
88
<PAGE>
Condensed Financial Information (continued)
- --------------------------------------------------------------------------------
(4) Funds were first received in this option during July 1997.
(5) Funds were first received in this option during May 1997.
(6) Funds were first received in this option during June 1998.
(7) Funds were first received in this option during January 1999.
(8) Funds were first received in this option during September 1997.
(9) Funds were first received in this option during March 1999.
(10) Funds were first received in this option during October 1997.
(11) Funds were first received in this option during September 1999.
(12) Funds were first received in this option during December 1999.
(13) Funds were first received in this option during August 1999.
(14) Funds were first received in this option during October 1999.
(15) Funds were first received in this option during June 1999.
(16) Funds were first received in this option during November 1997.
(17) Funds were first received in this option during February 1999.
(18) Funds were first received in this option during December 1998.
89
<PAGE>
Condensed Financial Information
- --------------------------------------------------------------------------------
TABLE IX
FOR CONTRACTS ISSUED UNDER 403(b), 401(a) AND 401(k) PLANS SINCE 1996
WITH TOTAL SEPARATE ACCOUNT CHARGES OF 1.30% AND 1.40%
(Selected data for accumulation units outstanding throughout each period)
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
The condensed financial information presented below for each of the periods
ended December 31, 1999, 1998 and 1997 (as applicable), is derived from the
financial statements of the separate account, which have been audited by KPMG
LLP, independent auditors. The financial statements and the independent
auditors' report thereon for the year ended December 31, 1999 are included in
the Statement of Additional Information.
<TABLE>
<CAPTION>
1.30% Total Charges
-------------------------------------------------
1999 1998 1997
---- ---- ----
<S> <C> <C> <C>
AETNA ASCENT VP
Value at beginning of period $13.946 $13.546 $11.759(1)
Value at end of period $15.742 $13.946 $13.546
Number of accumulation units outstanding at end
of period 2,120 1,424 855
AETNA BALANCED VP, INC.
Value at beginning of period $15.179 $13.150 $11.717(3)
Value at end of period $17.021 $15.179 $13.150
Number of accumulation units outstanding at end
of period 113 8 459
AETNA BOND VP
Value at beginning of period $11.959 $11.203 $10.974(1)
Value at end of period $11.717 $11.959 $11.203
Number of accumulation units outstanding at end
of period 36,650 59,443 279
AETNA CROSSROADS VP
Value at beginning of period $13.492 $12.906 $11.380(1)
Value at end of period $14.679 $13.492 $12.906
Number of accumulation units outstanding at end
of period 870 521 641
AETNA GROWTH VP
Value at beginning of period $18.880(4)
Value at end of period $23.843
Number of accumulation units outstanding at end
of period 381
AETNA GROWTH AND INCOME VP
Value at beginning of period $16.581 $14.672 $12.519(1)
Value at end of period $19.218 $16.581 $14.672
Number of accumulation units outstanding at end
of period 4,575 2,880 3,082
AETNA HIGH YIELD VP
Value at beginning of period
Value at end of period
Number of accumulation units outstanding at end
of period
AETNA INDEX PLUS LARGE CAP VP
Value at beginning of period $18.751 $14.435 $11.470(7)
Value at end of period $23.006 $18.751 $14.435
Number of accumulation units outstanding at end
of period 14,317 12,423 8,665
AETNA INDEX PLUS MID CAP VP
Value at beginning of period $10.887 $9.805(8)
Value at end of period $12.445 $10.887
Number of accumulation units outstanding at end
of period 385 41
AETNA INDEX PLUS SMALL CAP VP
Value at beginning of period $8.812 $8.198(8)
Value at end of period $9.637 $8.812
Number of accumulation units outstanding at end
of period 468 49
AETNA INTERNATIONAL VP
Value at beginning of period $10.019(4)
Value at end of period $14.582
Number of accumulation units outstanding at end
of period 149
AETNA LEGACY VP
Value at beginning of period $12.981 $12.298 $11.401(3)
Value at end of period $13.723 $12.981 $12.298
Number of accumulation units outstanding at end
of period 1,546 30,755 74
<CAPTION>
1.40% Total Charges
-----------------------------------
1999 1998
---- ----
<S> <C> <C>
AETNA ASCENT VP
Value at beginning of period $13.910 $14.731(2)
Value at end of period $15.685 $13.910
Number of accumulation units outstanding at end
of period 457 136
AETNA BALANCED VP, INC.
Value at beginning of period $15.139 $14.278(2)
Value at end of period $16.960 $15.139
Number of accumulation units outstanding at end
of period 1,122 533
AETNA BOND VP
Value at beginning of period $11.927 $11.423(2)
Value at end of period $11.674 $11.927
Number of accumulation units outstanding at end
of period 324 189
AETNA CROSSROADS VP
Value at beginning of period $13.457 $13.846(2)
Value at end of period $14.625 $13.457
Number of accumulation units outstanding at end
of period 1,479 501
AETNA GROWTH VP
Value at beginning of period $17.865 $15.724(2)
Value at end of period $23.778 $17.865
Number of accumulation units outstanding at end
of period 746 211
AETNA GROWTH AND INCOME VP
Value at beginning of period $16.537 $16.562(5)
Value at end of period $19.148 $16.537
Number of accumulation units outstanding at end
of period 2,977 934
AETNA HIGH YIELD VP
Value at beginning of period $9.555(6)
Value at end of period $9.715
Number of accumulation units outstanding at end
of period 30
AETNA INDEX PLUS LARGE CAP VP
Value at beginning of period $18.708 $16.556(2)
Value at end of period $22.930 $18.708
Number of accumulation units outstanding at end
of period 1,399 173
AETNA INDEX PLUS MID CAP VP
Value at beginning of period
Value at end of period
Number of accumulation units outstanding at end
of period
AETNA INDEX PLUS SMALL CAP VP
Value at beginning of period
Value at end of period
Number of accumulation units outstanding at end
of period
AETNA INTERNATIONAL VP
Value at beginning of period $10.925(9)
Value at end of period $14.557
Number of accumulation units outstanding at end
of period 21
AETNA LEGACY VP
Value at beginning of period $12.666(10)
Value at end of period $13.673
Number of accumulation units outstanding at end
of period 125
</TABLE>
90
<PAGE>
Condensed Financial Information (continued)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
1.30% Total Charges
-----------------------------------------------------
1999 1998 1997
---- ---- ----
<S> <C> <C> <C>
AETNA MONEY MARKET VP
Value at beginning of period $11.114 $10.676 $10.358(7)
Value at end of period $11.527 $11.114 $10.676
Number of accumulation units outstanding at end
of period 5,569 13,000 8,302
AETNA REAL ESTATE SECURITIES VP
Value at beginning of period
Value at end of period
Number of accumulation units outstanding at end
of period
AETNA SMALL COMPANY VP
Value at beginning of period
Value at end of period
Number of accumulation units outstanding at end
of period
AETNA VALUE OPPORTUNITY VP
Value at beginning of period $16.016 $15.827(12)
Value at end of period $18.904 $16.016
Number of accumulation units outstanding at end
of period 192 88
AIM V.I. CAPITAL APPRECIATION FUND
Value at beginning of period $9.857(13)
Value at end of period $13.748
Number of accumulation units outstanding at end
of period 54
AIM V.I. GROWTH FUND
Value at beginning of period $9.916(14)
Value at end of period $12.064
Number of accumulation units outstanding at end
of period 105
AIM V.I. GROWTH AND INCOME FUND
Value at beginning of period $10.636(15)
Value at end of period $11.712
Number of accumulation units outstanding at end
of period 893
AIM V.I. VALUE FUND
Value at beginning of period $10.847(15)
Value at end of period $11.494
Number of accumulation units outstanding at end
of period 10
CALVERT SOCIAL BALANCED PORTFOLIO
Value at beginning of period $14.827 $12.919 $11.742(3)
Value at end of period $16.426 $14.827 $12.919
Number of accumulation units outstanding at end
of period 44 13 44
FIDELITY VIP EQUITY-INCOME PORTFOLIO
Value at beginning of period $15.041 $13.650 $10.942(7)
Value at end of period $15.786 $15.041 $13.650
Number of accumulation units outstanding at end
of period 4,118 3,612 7,817
FIDELITY VIP GROWTH PORTFOLIO
Value at beginning of period $17.351 $12.601 $10.724(1)
Value at end of period $23.538 $17.351 $12.601
Number of accumulation units outstanding at end
of period 7,251 2,636 2,031
FIDELITY VIP OVERSEAS PORTFOLIO
Value at beginning of period $13.039 $11.716 $11.785(1)
Value at end of period $18.357 $13.039 $11.716
Number of accumulation units outstanding at end
of period 469 408 348
FIDELITY VIP II CONTRAFUND[Reg TM] PORTFOLIO
Value at beginning of period $17.636 $13.746 $11.031(7)
Value at end of period $21.631 $17.636 $13.746
Number of accumulation units outstanding at end
of period 12,867 10,681 7,728
JANUS ASPEN AGGRESSIVE GROWTH
PORTFOLIO
Value at beginning of period $13.985 $10.552 $8.944(1)
Value at end of period $31.116 $13.985 $10.552
Number of accumulation units outstanding at end
of period 9,014 3,586 2,527
JANUS ASPEN BALANCED PORTFOLIO
Value at beginning of period $17.701 $13.354 $12.113(3)
Value at end of period $22.147 $17.701 $13.354
Number of accumulation units outstanding at end
of period 2,769 668 369
<CAPTION>
1.40% Total Charges
-------------------------------------
1999 1998
---- ----
<S> <C> <C>
AETNA MONEY MARKET VP
Value at beginning of period $11.084 $10.821(2)
Value at end of period $11.485 $11.084
Number of accumulation units outstanding at end
of period 441 161
AETNA REAL ESTATE SECURITIES VP
Value at beginning of period $9.402(6)
Value at end of period $8.372
Number of accumulation units outstanding at end
of period 33
AETNA SMALL COMPANY VP
Value at beginning of period $13.598 $11.872(11)
Value at end of period $17.545 $13.598
Number of accumulation units outstanding at end
of period 283 72
AETNA VALUE OPPORTUNITY VP
Value at beginning of period $15.988 $15.181(2)
Value at end of period $18.852 $15.988
Number of accumulation units outstanding at end
of period 136 39
AIM V.I. CAPITAL APPRECIATION FUND
Value at beginning of period
Value at end of period
Number of accumulation units outstanding at end
of period
AIM V.I. GROWTH FUND
Value at beginning of period $10.959(15)
Value at end of period $12.056
Number of accumulation units outstanding at end
of period 3
AIM V.I. GROWTH AND INCOME FUND
Value at beginning of period
Value at end of period
Number of accumulation units outstanding at end
of period
AIM V.I. VALUE FUND
Value at beginning of period $10.003(16)
Value at end of period $11.486
Number of accumulation units outstanding at end
of period 507
CALVERT SOCIAL BALANCED PORTFOLIO
Value at beginning of period $14.950(4)
Value at end of period $16.366
Number of accumulation units outstanding at end
of period 508
FIDELITY VIP EQUITY-INCOME PORTFOLIO
Value at beginning of period $15.001 $15.124(2)
Value at end of period $15.729 $15.001
Number of accumulation units outstanding at end
of period 1,189 2,077
FIDELITY VIP GROWTH PORTFOLIO
Value at beginning of period $17.305 $14.386(2)
Value at end of period $23.453 $17.305
Number of accumulation units outstanding at end
of period 6,554 4,116
FIDELITY VIP OVERSEAS PORTFOLIO
Value at beginning of period $13.005 $13.828(2)
Value at end of period $18.291 $13.005
Number of accumulation units outstanding at end
of period 156 113
FIDELITY VIP II CONTRAFUND[Reg TM] PORTFOLIO
Value at beginning of period $17.590 $15.738(5)
Value at end of period $21.552 $17.590
Number of accumulation units outstanding at end
of period 3,062 1,990
JANUS ASPEN AGGRESSIVE GROWTH
PORTFOLIO
Value at beginning of period $13.948 $11.943(5)
Value at end of period $31.003 $13.948
Number of accumulation units outstanding at end
of period 2,357 1,441
JANUS ASPEN BALANCED PORTFOLIO
Value at beginning of period $17.654 $15.102(2)
Value at end of period $22.067 $17.654
Number of accumulation units outstanding at end
of period 1,224 564
</TABLE>
91
<PAGE>
Condensed Financial Information (continued)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
1.30% Total Charges 1.40% Total Charges
------------------------------------------ ---------------------------------
1999 1998 1997 1999 1998
---- ---- ---- ---- ----
<S> <C> <C> <C> <C> <C>
JANUS ASPEN FLEXIBLE INCOME PORTFOLIO
Value at beginning of period $12.923 $12.225(17) $12.889 $12.375(2)
Value at end of period $12.961 $12.923 $12.914 $12.889
Number of accumulation units outstanding at end
of period 4,549 8,960 169 30
JANUS ASPEN GROWTH PORTFOLIO
Value at beginning of period $17.630 $13.166 $10.962(7) $17.584 $15.123(2)
Value at end of period $25.057 $17.630 $13.166 $24.966 $17.584
Number of accumulation units outstanding at end
of period 4,722 911 637 3,143 2,368
JANUS ASPEN WORLDWIDE GROWTH PORTFOLIO
Value at beginning of period $17.407 $13.679 $11.961(7) $17.361 $16.231(5)
Value at end of period $28.257 $17.407 $13.679 $28.154 $17.361
Number of accumulation units outstanding at end
of period 14,291 6,473 2,018 2,148 649
LEXINGTON NATURAL RESOURCES TRUST
Value at beginning of period $12.012 $10.678(7)
Value at end of period $9.340 $12.012
Number of accumulation units outstanding at end
of period 0 5
OPPENHEIMER GLOBAL SECURITIES FUND/VA
Value at beginning of period $10.015 $9.965(12) $10.008 $10.041(18)
Value at end of period $15.668 $10.015 $15.641 $10.008
Number of accumulation units outstanding at end
of period 31 139 31 14
PPI MFS CAPITAL OPPORTUNITIES PORTFOLIO
Value at beginning of period $15.520 $12.406 $12.230(19) $15.479 $14.631(2)
Value at end of period $22.794 $15.520 $12.406 $22.712 $15.479
Number of accumulation units outstanding at end
of period 4,032 1,074 237 95 46
PPI MFS EMERGING EQUITIES PORTFOLIO
Value at beginning of period $12.649 $9.883 $10.007(19) $12.616 $11.707(2)
Value at end of period $18.838 $12.649 $9.883 $18.770 $12.616
Number of accumulation units outstanding at end
of period 7,480 5,462 3,595 1,615 928
PPI MFS RESEARCH GROWTH PORTFOLIO
Value at beginning of period $10.535 $8.677 $8.848(19) $10.507 $9.977(2)
Value at end of period $12.898 $10.535 $8.677 $12.851 $10.507
Number of accumulation units outstanding at end
of period 6,221 5,146 1,788 406 220
PPI SCUDDER INTERNATIONAL GROWTH PORTFOLIO
Value at beginning of period $13.467 $11.456 $11.314(19) $13.431 $13.542(2)
Value at end of period $21.057 $13.467 $11.456 $20.981 $13.431
Number of accumulation units outstanding at end
of period 462 313 200 182 125
PPI T. ROWE PRICE GROWTH PORTFOLIO
Value at beginning of period $16.696 $13.256 $12.991(19) $16.652 $15.190(2)
Value at end of period $20.160 $16.696 $13.256 $20.086 $16.652
Number of accumulation units outstanding at end
of period 3,215 2,748 1,649 2,478 1,525
</TABLE>
- -----------------
(1) Funds were first received in this option during May 1997.
(2) Funds were first received in this option during May 1998.
(3) Funds were first received in this option during June 1997.
(4) Funds were first received in this option during February 1999.
(5) Funds were first received in this option during April 1998.
(6) Funds were first received in this option during May 1999.
(7) Funds were first received in this option during April 1997.
(8) Funds were first received in this option during November 1998.
(9) Funds were first received in this option during July 1999.
(10) Funds were first received in this option during March 1999.
(11) Funds were first received in this option during September 1998.
(12) Funds were first received in this option during December 1998.
(13) Funds were first received in this option during October 1999.
(14) Funds were first received in this option during September 1999.
(15) Funds were first received in this option during November 1999.
(16) Funds were first received in this option during August 1999.
(17) Funds were first received in this option during March 1998.
(18) Funds were first received in this option during July 1998.
(19) Funds were first received in this option during November 1997.
92
<PAGE>
Condensed Financial Information
- --------------------------------------------------------------------------------
TABLE X
FOR CONTRACTS ISSUED UNDER 403(b), 401(a) AND 401(k) PLANS SINCE 1996
WITH TOTAL SEPARATE ACCOUNT CHARGES OF 1.50%
(Selected data for accumulation units outstanding throughout each period)
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
The condensed financial information presented below for each of the periods in
the four-year period ended December 31, 1999 (as applicable), is derived from
the financial statements of the separate account, which have been audited by
KPMG LLP, independent auditors. The financial statements and the independent
auditors' report thereon for the year ended December 31, 1999 are included in
the Statement of Additional Information.
<TABLE>
<CAPTION>
1999 1998 1997 1996
---- ---- ---- ----
<S> <C> <C> <C> <C>
AETNA ASCENT VP
Value at beginning of period $13.873 $13.502 $11.422(1)
Value at end of period $15.628 $13.873 $13.502
Number of accumulation units outstanding at end
of period 12,770 14,280 9,985
AETNA BALANCED VP, INC
Value at beginning of period $15.099 $13.107 $11.009(1)
Value at end of period $16.898 $15.099 $13.107
Number of accumulation units outstanding at end
of period 10,946 9,091 7,997
AETNA BOND VP
Value at beginning of period $11.896 $11.166 $10.442(1)
Value at end of period $11.632 $11.896 $11.166
Number of accumulation units outstanding at end
of period 6,253 27,680 2,940
AETNA CROSSROADS VP
Value at beginning of period $13.421 $12.864 $11.093(1)
Value at end of period $14.572 $13.421 $12.864
Number of accumulation units outstanding at end
of period 15,405 22,768 30,806
AETNA GROWTH VP
Value at beginning of period $17.834 $13.027(2)
Value at end of period $23.713 $17.834
Number of accumulation units outstanding at end
of period 5,473 3,470
AETNA GROWTH AND INCOME VP
Value at beginning of period $16.493 $14.624 $11.429 $10.000(3)
Value at end of period $19.078 $16.493 $14.624 $11.429
Number of accumulation units outstanding at end
of period 55,797 47,950 40,309 5
AETNA INDEX PLUS LARGE CAP VP
Value at beginning of period $18.665 $14.397 $11.374(1)
Value at end of period $22.855 $18.665 $14.397
Number of accumulation units outstanding at end
of period 22,097 16,814 3,156
AETNA INDEX PLUS MID CAP VP
Value at beginning of period $10.872 $9.216(4)
Value at end of period $12.403 $10.872
Number of accumulation units outstanding at end
of period 161 45
AETNA INDEX PLUS SMALL CAP VP
Value at beginning of period $8.800 $7.150(4)
Value at end of period $9.604 $8.800
Number of accumulation units outstanding at end
of period 233 78
AETNA INTERNATIONAL VP
Value at beginning of period $10.050(5)
Value at end of period $14.532
Number of accumulation units outstanding at end
of period 36
AETNA LEGACY VP
Value at beginning of period $12.913 $12.257 $10.835(6)
Value at end of period $13.623 $12.913 $12.257
Number of accumulation units outstanding at end
of period 7,896 14,097 14,983
AETNA MONEY MARKET VP
Value at beginning of period $11.055 $10.641 $10.249(1)
Value at end of period $11.443 $11.055 $10.641
Number of accumulation units outstanding at end
of period 14,503 13,218 13,868
AETNA SMALL COMPANY VP
Value at beginning of period $13.574 $13.629 $13.952(7)
Value at end of period $17.497 $13.574 $13.629
Number of accumulation units outstanding at end
of period 3,951 3,581 47
</TABLE>
93
<PAGE>
Condensed Financial Information (continued)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
1999 1998 1997 1996
---- ---- ---- ----
<S> <C> <C> <C> <C>
AETNA VALUE OPPORTUNITY VP
Value at beginning of period $15.960 $13.237 $12.103(8)
Value at end of period $18.801 $15.960 $13.237
Number of accumulation units outstanding at end
of period 2,344 2,432 795
AIM V.I. GROWTH FUND
Value at beginning of period $9.898(9)
Value at end of period $12.048
Number of accumulation units outstanding at end
of period 135
AIM V.I. GROWTH AND INCOME FUND
Value at beginning of period $9.550(10)
Value at end of period $11.695
Number of accumulation units outstanding at end
of period 22
AIM V.I. VALUE FUND
Value at beginning of period $10.442(11)
Value at end of period $11.502
Number of accumulation units outstanding at end
of period 67
CALVERT SOCIAL BALANCED PORTFOLIO
Value at beginning of period $14.749 $12.877 $10.955(1)
Value at end of period $16.306 $14.749 $12.877
Number of accumulation units outstanding at end
of period 3,026 1,709 1,007
FIDELITY VIP EQUITY-INCOME PORTFOLIO
Value at beginning of period $14.961 $13.606 $10.905(1)
Value at end of period $15.672 $14.961 $13.606
Number of accumulation units outstanding at end
of period 11,235 9,414 9,207
FIDELITY VIP GROWTH PORTFOLIO
Value at beginning of period $17.259 $12.560 $10.537(1)
Value at end of period $23.368 $17.259 $12.560
Number of accumulation units outstanding at end
of period 30,213 12,956 2,793
FIDELITY VIP OVERSEAS PORTFOLIO
Value at beginning of period $12.971 $11.678 $10.566(1)
Value at end of period $18.224 $12.971 $11.678
Number of accumulation units outstanding at end
of period 956 468 107
FIDELITY VIP II CONTRAFUND[Reg TM] PORTFOLIO
Value at beginning of period $17.543 $13.701 $11.436(1)
Value at end of period $21.474 $17.543 $13.701
Number of accumulation units outstanding at end
of period 14,452 11,751 8,704
JANUS ASPEN AGGRESSIVE GROWTH
PORTFOLIO
Value at beginning of period $13.911 $10.518 $9.477 $10.000(3)
Value at end of period $30.890 $13.911 $10.518 $9.477
Number of accumulation units outstanding at end
of period 19,942 13,650 12,648 9
JANUS ASPEN BALANCED PORTFOLIO
Value at beginning of period $17.607 $13.310 $11.136(1)
Value at end of period $21.987 $17.607 $13.310
Number of accumulation units outstanding at end
of period 31,263 20,319 2,801
JANUS ASPEN FLEXIBLE INCOME PORTFOLIO
Value at beginning of period $12.855 $11.960 $10.955(6)
Value at end of period $12.867 $12.855 $11.960
Number of accumulation units outstanding at end
of period 669 248 118
JANUS ASPEN GROWTH PORTFOLIO
Value at beginning of period $17.537 $13.123 $11.002(1)
Value at end of period $24.875 $17.537 $13.123
Number of accumulation units outstanding at end
of period 10,931 8,842 5,724
JANUS ASPEN WORLDWIDE GROWTH
PORTFOLIO
Value at beginning of period $17.315 $13.634 $11.483(1)
Value at end of period $28.052 $17.315 $13.634
Number of accumulation units outstanding at end
of period 34,244 23,085 16,828
LEXINGTON NATURAL RESOURCES TRUST
Value at beginning of period $9.480 $11.973 $11.712(1)
Value at end of period $10.655 $9.480 $11.973
Number of accumulation units outstanding at end
of period 147 318 627
</TABLE>
94
<PAGE>
Condensed Financial Information (continued)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
1999 1998 1997 1996
---- ---- ---- ----
<S> <C> <C> <C> <C>
OPPENHEIMER STRATEGIC BOND FUND/VA
Value at beginning of period $9.878 $9.973(12)
Value at end of period $10.006 $9.878
Number of accumulation units outstanding at end
of period 69 3
PPI MFS CAPITAL OPPORTUNITIES
PORTFOLIO
Value at beginning of period $15.438 $12.365 $12.192(13)
Value at end of period $22.629 $15.438 $12.365
Number of accumulation units outstanding at end
of period 1,541 1,256 80
PPI MFS EMERGING EQUITIES PORTFOLIO
Value at beginning of period $12.582 $9.850 $9.976(13)
Value at end of period $18.702 $12.582 $9.850
Number of accumulation units outstanding at end
of period 7,942 5,349 2,413
PPI MFS RESEARCH GROWTH PORTFOLIO
Value at beginning of period $10.479 $8.649 $8.821(13)
Value at end of period $12.805 $10.479 $8.649
Number of accumulation units outstanding at end
of period 1,992 1,814 442
PPI SCUDDER INTERNATIONAL GROWTH
PORTFOLIO
Value at beginning of period $13.396 $11.418 $11.279(13)
Value at end of period $20.905 $13.396 $11.418
Number of accumulation units outstanding at end
of period 3,469 3,208 2,665
PPI T. ROWE PRICE GROWTH PORTFOLIO
Value at beginning of period $16.608 $13.212 $12.951(13)
Value at end of period $20.013 $16.608 $13.212
Number of accumulation units outstanding at end
of period 7,740 5,824 3,802
</TABLE>
- -----------------
(1) Funds were first received in this option during January 1997.
(2) Funds were first received in this option during January 1998.
(3) The initial accumulation unit value was established during May 1996 when
the fund became available under the contract, when funds were first
received in this option or when the applicable daily asset charge was first
utilized.
(4) Funds were first received in this option during August 1998.
(5) Funds were first received in this option during January 1999.
(6) Funds were first received in this option during April 1997.
(7) Funds were first received in this option during September 1997.
(8) Funds were first received in this option during July 1997.
(9) Funds were first received in this option during July 1999.
(10) Funds were first received in this option during October 1999.
(11) Funds were first received in this option during November 1999.
(12) Funds were first received in this option during May 1998.
(13) Funds were first received in this option during November 1997.
95
<PAGE>
Condensed Financial Information
- --------------------------------------------------------------------------------
TABLE XI
FOR CONTRACTS ISSUED UNDER 403(b) PLANS AND DEFERRED COMPENSATION PLANS
WITH TOTAL SEPARATE ACCOUNT CHARGES OF 1.25%
(Selected data for accumulation units outstanding throughout each period)
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
The condensed financial information presented below for each of the periods in
the ten-year period ended December 31, 1999 (as applicable), is derived from the
financial statements of the separate account, which have been audited by KPMG
LLP, independent auditors. The financial statements and the independent
auditors' report thereon for the year ended December 31, 1999 are included in
the Statement of Additional Information.
<TABLE>
<CAPTION>
1999 1998 1997 1996
---- ---- ---- ----
<S> <C> <C> <C> <C>
AETNA ASCENT VP
Value at beginning of period $15.886 $15.422 $13.025 $10.673
Value at end of period $17.940 $15.886 $15.422 $13.025
Number of accumulation units
outstanding at end of period 2,759,063 3,508,677 3,543,367 1,314,997
AETNA BALANCED VP
Value at beginning of period $21.723 $18.811 $15.551 $13.673
Value at end of period $24.372 $21.723 $18.811 $15.551
Number of accumulation units
outstanding at end of period 21,610,375 25,990,902 34,194,804 36,147,028
AETNA BOND VP
Value at beginning of period $14.137 $13.238 $12.377 $12.098
Value at end of period $13.859 $14.137 $13.238 $12.377
Number of accumulation units
outstanding at end of period 11,928,359 15,101,998 18,047,780 20,036,622
AETNA CROSSROADS VP
Value at beginning of period $15.120 $14.456 $12.450 $10.612
Value at end of period $16.458 $15.120 $14.456 $12.450
Number of accumulation units
outstanding at end of period 2,306,431 2,863,812 2,469,082 918,336
AETNA GROWTH VP
Value at beginning of period $17.912 $13.173 $11.635(4)
Value at end of period $23.875 $17.912 $13.173
Number of accumulation units
outstanding at end of period 3,505,798 2,395,680 41,928
AETNA GROWTH AND
INCOME VP
Value at beginning of period $25.094 $22.194 $17.302 $14.077
Value at end of period $29.100 $25.094 $22.194 $17.302
Number of accumulation units
outstanding at end of period 107,941,232 134,233,828 177,627,474 185,328,132
AETNA HIGH YIELD VP
Value at beginning of period $9.212 $9.969(6)
Value at end of period $9.739 $9.212
Number of accumulation units
outstanding at end of period 151,581 91,056
AETNA INDEX PLUS LARGE
CAP VP
Value at beginning of period $18.772 $14.444 $10.924 $10.000(7)
Value at end of period $23.044 $18.772 $14.444 $10.924
Number of accumulation units
outstanding at end of period 10,058,181 7,100,483 4,796,644 879,588
AETNA INDEX PLUS MID
CAP VP
Value at beginning of period $10.891 $10.107(6)
Value at end of period $12.455 $10.891
Number of accumulation units
outstanding at end of period 395,150 146,921
AETNA INDEX PLUS SMALL
CAP VP
Value at beginning of period $8.815 $9.996(6)
Value at end of period $9.645 $8.815
Number of accumulation units
outstanding at end of period 407,203 253,184
AETNA INTERNATIONAL VP
Value at beginning of period $9.765 $10.182(6)
Value at end of period $14.594 $9.765
Number of accumulation units
outstanding at end of period 271,052 97,660
<CAPTION>
1995 1994 1993 1992 1991 1990
---- ---- ---- ---- ---- ----
<S> <C> <C> <C> <C> <C> <C>
AETNA ASCENT VP
Value at beginning of period $10.000(1)
Value at end of period $10.673
Number of accumulation units
outstanding at end of period 393,053
AETNA BALANCED VP
Value at beginning of period $10.868 $11.057 $10.189 $12.736(2) $10.896 $10.437
Value at end of period $13.673 $10.868 $11.057 $10.189 $12.736 $10.896
Number of accumulation units
outstanding at end of period 38,152,395 23,139,604 11,368,365 11,508 22,898,099 17,078,985
AETNA BOND VP
Value at beginning of period $10.360 $10.905 $10.068 $36.789(3) $31.192 $28.943
Value at end of period $12.098 $10.360 $10.905 $10.068 $36.789 $31.192
Number of accumulation units
outstanding at end of period 21,379,976 11,713,354 4,084,142 3,870 7,844,412 6,984,793
AETNA CROSSROADS VP
Value at beginning of period $10.000(1)
Value at end of period $10.612
Number of accumulation units
outstanding at end of period 294,673
AETNA GROWTH VP
Value at beginning of period
Value at end of period
Number of accumulation units
outstanding at end of period
AETNA GROWTH AND
INCOME VP
Value at beginning of period $10.778 $11.020 $10.454 $97.165(5) $77.845 $76.311
Value at end of period $14.077 $10.778 $11.020 $10.454 $97.165 $77.845
Number of accumulation units
outstanding at end of period 188,964,022 114,733,035 44,166,470 21,250 20,948,226 18,362,906
AETNA HIGH YIELD VP
Value at beginning of period
Value at end of period
Number of accumulation units
outstanding at end of period
AETNA INDEX PLUS LARGE
CAP VP
Value at beginning of period
Value at end of period
Number of accumulation units
outstanding at end of period
AETNA INDEX PLUS MID
CAP VP
Value at beginning of period
Value at end of period
Number of accumulation units
outstanding at end of period
AETNA INDEX PLUS SMALL
CAP VP
Value at beginning of period
Value at end of period
Number of accumulation units
outstanding at end of period
AETNA INTERNATIONAL VP
Value at beginning of period
Value at end of period
Number of accumulation units
outstanding at end of period
</TABLE>
96
<PAGE>
Condensed Financial Information (continued)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
1999 1998 1997 1996
---- ---- ---- ----
<S> <C> <C> <C> <C>
AETNA LEGACY VP
Value at beginning of period $14.248 $13.491 $11.930 $10.580
Value at end of period $15.070 $14.248 $13.491 $11.930
Number of accumulation units
outstanding at end of period 1,420,931 11,971,281 1,624,842 513,590
AETNA MONEY MARKET VP
Value at beginning of period $12.447 $11.951 $11.473 $11.026
Value at end of period $12.917 $12.447 $11.951 $11.473
Number of accumulation units
outstanding at end of period 11,010,659 10,102,496 12,191,085 13,898,826
AETNA REAL ESTATE
SECURITIES VP
Value at beginning of period $8.873 $10.126(6)
Value at end of period $8.393 $8.873
Number of accumulation units
outstanding at end of period 140,481 90,949
AETNA SMALL COMPANY
VP
Value at beginning of period $13.633 $13.654 $12.299(9)
Value at end of period $17.617 $13.633 $13.654
Number of accumulation units
outstanding at end of period 1,598,682 1,696,714 253,548
AETNA VALUE
OPPORTUNITY VP
Value at beginning of period $16.030 $13.261 $12.913(10)
Value at end of period $18.930 $16.030 $13.261
Number of accumulation units
outstanding at end of period 987,707 1,079,291 100,928
AIM V.I. CAPITAL
APPRECIATION FUND
Value at beginning of period $10.217(11)
Value at end of period $13.753
Number of accumulation units
outstanding at end of period 77,470
AIM V.I. GROWTH FUND
Value at beginning of period $9.513(11)
Value at end of period $12.069
Number of accumulation units
outstanding at end of period 240,556
AIM V.I. GROWTH AND
INCOME FUND
Value at beginning of period $9.627(11)
Value at end of period $11.716
Number of accumulation units
outstanding at end of period 470,277
AIM V.I. VALUE FUND
Value at beginning of period $9.747(11)
Value at end of period $11.506
Number of accumulation units
outstanding at end of period 405,286
CALVERT SOCIAL
BALANCED PORTFOLIO
Value at beginning of period $20.485 $17.840 $15.044 $13.527
Value at end of period $22.705 $20.485 $17.840 $15.044
Number of accumulation units
outstanding at end of period 1,118,008 1,306,652 1,499,989 1,313,324
FIDELITY VIP EQUITY-
INCOME PORTFOLIO
Value at beginning of period $17.459 $15.837 $12.518 $11.092
Value at end of period $18.334 $17.459 $15.837 $12.518
Number of accumulation units
outstanding at end of period 5,366,553 6,281,077 7,111,490 5,007,706
FIDELITY VIP GROWTH
PORTFOLIO
Value at beginning of period $19.155 $13.904 $11.402 $10.066
Value at end of period $25.999 $19.155 $13.904 $11.402
Number of accumulation units
outstanding at end of period 9,652,436 7,144,438 6,586,698 5,171,098
FIDELITY VIP OVERSEAS
PORTFOLIO
Value at beginning of period $13.662 $12.269 $11.137 $9.961
Value at end of period $19.243 $13.662 $12.269 $11.137
Number of accumulation units
outstanding at end of period 676,303 651,566 718,565 487,709
<CAPTION>
1995 1994 1993 1992 1991 1990
---- ---- ---- ---- ---- ----
<S> <C> <C> <C> <C> <C> <C>
AETNA LEGACY VP
Value at beginning of period $10.000(1)
Value at end of period $10.580
Number of accumulation units
outstanding at end of period 143,637
AETNA MONEY MARKET VP
Value at beginning of period $10.528 $10.241 $10.048 $33.812(8) $32.138 $30.012
Value at end of period $11.026 $10.528 $10.241 $10.048 $33.812 $32.138
Number of accumulation units
outstanding at end of period 12,999,680 7,673,528 2,766,044 825 8,430,082 10,220,110
AETNA REAL ESTATE
SECURITIES VP
Value at beginning of period
Value at end of period
Number of accumulation units
outstanding at end of period
AETNA SMALL COMPANY
VP
Value at beginning of period
Value at end of period
Number of accumulation units
outstanding at end of period
AETNA VALUE
OPPORTUNITY VP
Value at beginning of period
Value at end of period
Number of accumulation units
outstanding at end of period
AIM V.I. CAPITAL
APPRECIATION FUND
Value at beginning of period
Value at end of period
Number of accumulation units
outstanding at end of period
AIM V.I. GROWTH FUND
Value at beginning of period
Value at end of period
Number of accumulation units
outstanding at end of period
AIM V.I. GROWTH AND
INCOME FUND
Value at beginning of period
Value at end of period
Number of accumulation units
outstanding at end of period
AIM V.I. VALUE FUND
Value at beginning of period
Value at end of period
Number of accumulation units
outstanding at end of period
CALVERT SOCIAL
BALANCED PORTFOLIO
Value at beginning of period $10.554 $11.036 $10.278 $10.000(12)
Value at end of period $13.527 $10.554 $11.036 $10.278
Number of accumulation units
outstanding at end of period 966,098 521,141 144,168 2,556
FIDELITY VIP EQUITY-
INCOME PORTFOLIO
Value at beginning of period $10.000(2)
Value at end of period $11.092
Number of accumulation units
outstanding at end of period 1,660,304
FIDELITY VIP GROWTH
PORTFOLIO
Value at beginning of period $10.000(1)
Value at end of period $10.066
Number of accumulation units
outstanding at end of period 1,833,794
FIDELITY VIP OVERSEAS
PORTFOLIO
Value at beginning of period $10.000(1)
Value at end of period $9.961
Number of accumulation units
outstanding at end of period 196,090
</TABLE>
97
<PAGE>
Condensed Financial Information (continued)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
1999 1998 1997 1996
---- ---- ---- ----
<S> <C> <C> <C> <C>
FIDELITY VIP II
CONTRAFUND[Reg TM]
PORTFOLIO
Value at beginning of period $19.601 $15.270 $12.455 $10.397
Value at end of period $24.053 $19.601 $15.270 $12.455
Number of accumulation units
outstanding at end of period 9,498,614 9,575,608 11,399,666 6,812,870
JANUS ASPEN AGGRESSIVE
GROWTH PORTFOLIO
Value at beginning of period $20.951 $15.801 $14.202 $13.322
Value at end of period $46.640 $20.951 $15.801 $14.202
Number of accumulation units
outstanding at end of period 12,224,096 7,536,062 9,271,525 8,835,470
JANUS ASPEN BALANCED
PORTFOLIO
Value at beginning of period $19.908 $15.012 $12.449 $10.850
Value at end of period $24.922 $19.908 $15.012 $12.449
Number of accumulation units
outstanding at end of period 5,686,066 3,192,160 1,911,789 996,510
JANUS ASPEN FLEXIBLE
INCOME PORTFOLIO
Value at beginning of period $15.487 $14.373 $13.022 $12.077
Value at end of period $15.540 $15.487 $14.373 $13.022
Number of accumulation units
outstanding at end of period 1,078,342 1,213,451 934,053 619,287
JANUS ASPEN GROWTH
PORTFOLIO
Value at beginning of period $20.651 $15.414 $12.716 $10.870
Value at end of period $29.366 $20.651 $15.414 $12.716
Number of accumulation units
outstanding at end of period 5,434,098 2,995,268 3,100,436 2,018,527
JANUS ASPEN WORLDWIDE
GROWTH PORTFOLIO
Value at beginning of period $21.288 $16.720 $13.860 $10.877
Value at end of period $34.574 $21.288 $16.720 $13.860
Number of accumulation units
outstanding at end of period 15,478,181 14,519,620 17,194,687 8,715,825
LEXINGTON NATURAL
RESOURCES TRUST
Value at beginning of period $12.336 $15.541 $14.686 $11.720
Value at end of period $13.900 $12.336 $15.541 $14.686
Number of accumulation units
outstanding at end of period 489,113 755,984 1,786,409 966,482
OPPENHEIMER GLOBAL
SECURITIES FUND/VA
Value at beginning of period $10.018 $10.079(6)
Value at end of period $15.681 $10.018
Number of accumulation units
outstanding at end of period 184,292 39,441
OPPENHEIMER STRATEGIC
BOND FUND/VA
Value at beginning of period $9.895 $10.015(6)
Value at end of period $10.048 $9.895
Number of accumulation units
outstanding at end of period 90,616 71,074
PPI MFS CAPITAL
OPPORTUNITIES
PORTFOLIO
Value at beginning of period $24.145 $19.291 $19.016(14)
Value at end of period $35.480 $24.145 $19.291
Number of accumulation units
outstanding at end of period 2,035,825 2,186,996 2,879,845
PPI MFS EMERGING
EQUITIES PORTFOLIO
Value at beginning of period $19.114 $14.927 $15.114(14)
Value at end of period $28.481 $19.114 $14.927
Number of accumulation units
outstanding at end of period 9,740,294 11,377,408 16,549,322
PPI MFS RESEARCH
GROWTH PORTFOLIO
Value at beginning of period $16.758 $13.795 $14.067(14)
Value at end of period $20.527 $16.758 $13.795
Number of accumulation units
outstanding at end of period 7,196,329 8,758,123 11,539,850
<CAPTION>
1995 1994 1993 1992 1991 1990
---- ---- ---- ---- ---- ----
<S> <C> <C> <C> <C> <C> <C>
FIDELITY VIP II
CONTRAFUND[Reg TM]
PORTFOLIO
Value at beginning of period $10.000(1)
Value at end of period $10.397
Number of accumulation units
outstanding at end of period 2,116,732
JANUS ASPEN AGGRESSIVE
GROWTH PORTFOLIO
Value at beginning of period $10.581 $10.000(13)
Value at end of period $13.322 $10.581
Number of accumulation units
outstanding at end of period 4,887,060 753,862
JANUS ASPEN BALANCED
PORTFOLIO
Value at beginning of period $10.000(1)
Value at end of period $10.850
Number of accumulation units
outstanding at end of period 93,304
JANUS ASPEN FLEXIBLE
INCOME PORTFOLIO
Value at beginning of period $9.873 $10.000(13)
Value at end of period $12.077 $9.873
Number of accumulation units
outstanding at end of period 315,361 28,543
JANUS ASPEN GROWTH
PORTFOLIO
Value at beginning of period $10.000(1)
Value at end of period $10.870
Number of accumulation units
outstanding at end of period 259,196
JANUS ASPEN WORLDWIDE
GROWTH PORTFOLIO
Value at beginning of period $10.000(1)
Value at end of period $10.877
Number of accumulation units
outstanding at end of period 1,036,040
LEXINGTON NATURAL
RESOURCES TRUST
Value at beginning of period $10.154 $10.877 $9.832 $10.000(12)
Value at end of period $11.720 $10.154 $10.877 $9.832
Number of accumulation units
outstanding at end of period 711,892 703,676 135,614 561
OPPENHEIMER GLOBAL
SECURITIES FUND/VA
Value at beginning of period
Value at end of period
Number of accumulation units
outstanding at end of period
OPPENHEIMER STRATEGIC
BOND FUND/VA
Value at beginning of period
Value at end of period
Number of accumulation units
outstanding at end of period
PPI MFS CAPITAL
OPPORTUNITIES
PORTFOLIO
Value at beginning of period
Value at end of period
Number of accumulation units
outstanding at end of period
PPI MFS EMERGING
EQUITIES PORTFOLIO
Value at beginning of period
Value at end of period
Number of accumulation units
outstanding at end of period
PPI MFS RESEARCH
GROWTH PORTFOLIO
Value at beginning of period
Value at end of period
Number of accumulation units
outstanding at end of period
</TABLE>
98
<PAGE>
Condensed Financial Information (continued)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
1999 1998 1997 1996 1995 1994 1993 1992 1991 1990
---- ---- ---- ---- ---- ---- ---- ---- ---- ----
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
PPI SCUDDER
INTERNATIONAL GROWTH
PORTFOLIO
Value at beginning of period $19.978 $16.986 $16.776(14)
Value at end of period $31.255 $19.978 $16.986
Number of accumulation units
outstanding at end of period 3,509,645 4,030,904 6,242,299
PPI T. ROWE PRICE
GROWTH EQUITY
PORTFOLIO
Value at beginning of period $18.146 $14.400 $14.112(14)
Value at end of period $21.922 $18.146 $14.400
Number of accumulation units
outstanding at end of period 5,814,568 6,541,819 8,296,964
</TABLE>
- -----------------
(1) The initial accumulation unit value was established at $10.000 during
August 1995 when the fund became available under the contract.
(2) The accumulation unit value was converted to $10.000 on August 21, 1992
upon the commencement of a new administrative system. Immediately prior to
that date, the accumulation unit value of the fund was $13.118. On the
date of conversion, additional units were issued so that account values
were not changed as a result of the conversion.
(3) The accumulation unit value was converted to $10.000 on August 21, 1992
upon the commencement of a new administrative system. Immediately prior to
that date, the accumulation unit value of the fund was $38.521. On the
date of conversion, additional units were issued so that account values
were not changed as a result of the conversion.
(4) Funds were first received in this option during June 1997.
(5) The accumulation unit value was converted to $10.000 on August 21, 1992
upon the commencement of a new administrative system. Immediately prior to
that date, the accumulation unit value of the fund was $97.817. On the
date of conversion, additional units were issued so that account values
were not changed as a result of the conversion.
(6) Funds were first received in this option during May 1998.
(7) The initial accumulation unit value was established at $10.000 during
August 1996, when the portfolio became available under the contract.
(8) The accumulation unit value was converted to $10.000 on August 21, 1992
upon the commencement of a new administrative system. Immediately prior to
that date, the accumulation unit value of the fund was $34.397. On the
date of conversion, additional units were issued so that account value
were not changed as a result of the conversion.
(9) Funds were first received in this option during July 1997.
(10) Funds were first received in this option during August 1997.
(11) Funds were first received in this option during May 1999.
(12) The initial accumulation unit value was established at $10.000 on August
21, 1992, the date on which the fund/portfolio became available under the
contract.
(13) The initial accumulation unit value was established at $10.000 during
October 1994, when the funds were first received in this option.
(14) Funds were first received in this option during November 1997.
99
<PAGE>
Condensed Financial Information
- --------------------------------------------------------------------------------
TABLE XII
FOR MULTIPLE OPTION CONTRACTS ISSUED TO
SAN BERNARDINO COUNTY AND MACOMB COUNTY
WITH TOTAL SEPARATE ACCOUNT CHARGES OF 1.25%
(Selected data for accumulation units outstanding throughout each period)
================================================================================
The condensed financial information presented below for each of the periods in
the ten-year period ended December 31, 1999 (as applicable), is derived from the
financial statements of the separate account, which have been audited by KPMG
LLP, independent auditors. The financial statements and the independent
auditors' report thereon for the year ended December 31, 1999 are included in
the Statement of Additional Information.
<TABLE>
<CAPTION>
1999 1998 1997 1996
------- ------- -------- --------
<S> <C> <C> <C> <C>
AETNA ASCENT VP
Value at beginning of period $15.886 $15.422 $13.291(1)
Value at end of period $17.940 $15.886 $15.422
Number of accumulation units
outstanding at end of period 33,852 21,430 380
AETNA BALANCED VP, INC
Value at beginning of period $28.524 $24.700 $20.419 $17.954
Value at end of period $32.002 $28.524 $24.700 $20.419
Number of accumulation units
outstanding at end of period 2,155,445 2,294,877 2,160,305 2,716,641
AETNA BOND VP
Value at beginning of period $54.819 $51.330 $47.992 $46.913
Value at end of period $53.738 $54.819 $51.330 $47.992
Number of accumulation units
outstanding at end of period 867,416 994,987 959,336 835,724
AETNA CROSSROADS VP
Value at beginning of period $15.120 $14.456 $12.577(1)
Value at end of period $16.458 $15.120 $14.456
Number of accumulation units
outstanding at end of period 30,738 31,468 873
AETNA GROWTH VP
Value at beginning of period $13.597 $11.392(2)
Value at end of period $18.124 $13.597
Number of accumulation units
outstanding at end of period 781 17
AETNA GROWTH AND
INCOME VP
Value at beginning of period $245.765 $217.359 $169.448 $137.869
Value at end of period $284.994 $245.765 $217.359 $169.448
Number of accumulation units
outstanding at end of period 1,555,542 1,747,097 1,826,355 2,071,139
AETNA INDEX PLUS LARGE
CAP VP
Value at beginning of period $18.772 $14.444 $14.493(3)
Value at end of period $23.044 $18.772 $14.444
Number of accumulation units
outstanding at end of period 2,748,955 1,302,825 17,771
AETNA INDEX PLUS MID
CAP VP
Value at beginning of period $11.338 $9.928(4)
Value at end of period $12.967 $11.338
Number of accumulation units
outstanding at end of period 73,984 35,201
AETNA INDEX PLUS SMALL
CAP VP
Value at beginning of period $ 9.157 $10.193(4)
Value at end of period $10.019 $9.157
Number of accumulation units
outstanding at end of period 118,433 81,388
AETNA LEGACY VP
Value at beginning of period $14.248 $13.491 $12.296(5)
Value at end of period $15.070 $14.248 $13.491
Number of accumulation units
outstanding at end of period 46,462 95,526 2,279
AETNA MONEY MARKET VP
Value at beginning of period $42.883 $41.174 $39.528 $37.988
Value at end of period $44.501 $42.883 $41.174 $39.528
Number of accumulation units
outstanding at end of period 845,679 564,537 455,502 597,656
<CAPTION>
1995 1994 1993 1992 1991 1990
-------- ---------- ---------- ---------- ---------- ----------
<S> <C> <C> <C> <C> <C> <C>
AETNA ASCENT VP
Value at beginning of period
Value at end of period
Number of accumulation units
outstanding at end of period
AETNA BALANCED VP, INC
Value at beginning of period $14.270 $14.519 $13.379 $12.736 $10.896 $10.437
Value at end of period $17.954 $14.270 $14.519 $13.379 $12.736 $10.896
Number of accumulation units
outstanding at end of period 9,193,181 21,990,186 30,784,750 34,802,433 22,898,099 17,078,985
AETNA BOND VP
Value at beginning of period $40.173 $42.283 $39.038 $36.789 $31.192 $28.943
Value at end of period $46.913 $40.173 $42.283 $39.038 $36.789 $31.192
Number of accumulation units
outstanding at end of period 2,377,622 5,108,720 8,210,666 8,507,292 7,844,412 6,984,793
AETNA CROSSROADS VP
Value at beginning of period
Value at end of period
Number of accumulation units
outstanding at end of period
AETNA GROWTH VP
Value at beginning of period
Value at end of period
Number of accumulation units
outstanding at end of period
AETNA GROWTH AND
INCOME VP
Value at beginning of period $105.558 $107.925 $102.383 $ 97.165 $ 77.845 $76.311
Value at end of period $137.869 $105.558 $107.925 $102.383 $ 97.165 $77.845
Number of accumulation units
outstanding at end of period 6,364,000 13,966,072 21,148,863 24,201,565 20,948,226 18,362,906
AETNA INDEX PLUS LARGE
CAP VP
Value at beginning of period
Value at end of period
Number of accumulation units
outstanding at end of period
AETNA INDEX PLUS MID
CAP VP
Value at beginning of period
Value at end of period
Number of accumulation units
outstanding at end of period
AETNA INDEX PLUS SMALL
CAP VP
Value at beginning of period
Value at end of period
Number of accumulation units
outstanding at end of period
AETNA LEGACY VP
Value at beginning of period
Value at end of period
Number of accumulation units
outstanding at end of period
AETNA MONEY MARKET VP
Value at beginning of period $36.271 $35.282 $34.619 $33.812 $32.138 $30.012
Value at end of period $37.988 $36.271 $35.282 $34.619 $33.812 $32.138
Number of accumulation units
outstanding at end of period 1,836,260 3,679,802 5,086,515 7,534,662 8,430,082 10,220,110
</TABLE>
100
<PAGE>
Condensed Financial Information (continued)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
1999 1998 1997 1996
--------- -------- -------- ---------
<S> <C> <C> <C> <C>
AETNA VALUE
OPPORTUNITY VP
Value at beginning of period $12.088 $11.472(4)
Value at end of period $14.274 $12.088
Number of accumulation units
outstanding at end of period 74,768 33,957
CALVERT SOCIAL
BALANCED PORTFOLIO
Value at beginning of period $27.186 $23.675 $19.965 $17.951
Value at end of period $30.131 $27.186 $23.675 $19.965
Number of accumulation units
outstanding at end of period 880,319 917,567 929,282 898,279
FIDELITY VIP EQUITY-
INCOME PORTFOLIO
Value at beginning of period $18.285 $16.587 $13.110 $11.617
Value at end of period $19.201 $18.285 $16.587 $13.110
Number of accumulation units
outstanding at end of period 2,271,494 2,533,673 2,139,178 1,454,755
FIDELITY VIP GROWTH
PORTFOLIO
Value at beginning of period $19.406 $14.087 $11.843(7)
Value at end of period $26.340 $19.406 $14.087
Number of accumulation units
outstanding at end of period 78 72 29
FIDELITY VIP HIGH
INCOME PORTFOLIO
Value at beginning of period $9.023
Value at end of period $9.638
Number of accumulation units
outstanding at end of period 194,440
FIDELITY VIP OVERSEAS
PORTFOLIO
Value at beginning of period $11.400 $10.197
Value at end of period $12.560 $11.400
Number of accumulation units
outstanding at end of period 0 1,302
FIDELITY VIP II ASSET
MANAGER PORTFOLIO
Value at beginning of period $16.719
Value at end of period $18.343
Number of accumulation units
outstanding at end of period 1,511,789
FIDELITY VIP II
CONTRAFUND[Reg TM]
PORTFOLIO
Value at beginning of period $22.177 $17.276 $14.092 $11.763
Value at end of period $27.214 $22.177 $17.276 $14.092
Number of accumulation units
outstanding at end of period 3,780,287 3,333,320 2,706,862 1,522,169
FIDELITY VIP II INDEX 500
PORTFOLIO
Value at beginning of period $23.650
Value at end of period $28.147
Number of accumulation units
outstanding at end of period 4,354,723
JANUS ASPEN AGGRESSIVE
GROWTH PORTFOLIO
Value at beginning of period $24.098 $18.174 $16.334 $15.323
Value at end of period $53.644 $24.098 $18.174 $16.334
Number of accumulation units
outstanding at end of period 3,274,450 2,142,130 1,939,607 1,893,718
JANUS ASPEN BALANCED
PORTFOLIO
Value at beginning of period $19.914 $15.016 $12.453 $10.853
Value at end of period $24.929 $19.914 $15.016 $12.453
Number of accumulation units
outstanding at end of period 476 3,698 7,873 231
JANUS ASPEN FLEXIBLE
INCOME PORTFOLIO
Value at beginning of period $15.548 $14.430 $13.074 $12.124
Value at end of period $15.601 $15.548 $14.430 $13.074
Number of accumulation units
outstanding at end of period 6,629 8,967 5,211 3,761
JANUS ASPEN GROWTH
PORTFOLIO
Value at beginning of period $22.529 $16.816 $13.872 $11.859
Value at end of period $32.036 $22.529 $16.816 $13.872
Number of accumulation units
outstanding at end of period 2,721,885 1,354,047 1,109,942 663,945
<CAPTION>
1995 1994 1993 1992 1991 1990
-------- ------- -------- ------- ------- --------
<S> <C> <C> <C> <C> <C> <C>
AETNA VALUE
OPPORTUNITY VP
Value at beginning of period
Value at end of period
Number of accumulation units
outstanding at end of period
CALVERT SOCIAL
BALANCED PORTFOLIO
Value at beginning of period $13.990 $14.640 $13.726 $12.913 $11.233 $10.568
Value at end of period $17.951 $13.990 $14.640 $13.726 $12.913 $11.233
Number of accumulation units
outstanding at end of period 856,361 743,464 705,415 503,006 355,851 148,576
FIDELITY VIP EQUITY-
INCOME PORTFOLIO
Value at beginning of period $10.000(6)
Value at end of period $11.617
Number of accumulation units
outstanding at end of period 628,582
FIDELITY VIP GROWTH
PORTFOLIO
Value at beginning of period
Value at end of period
Number of accumulation units
outstanding at end of period
FIDELITY VIP HIGH
INCOME PORTFOLIO
Value at beginning of period
Value at end of period
Number of accumulation units
outstanding at end of period
FIDELITY VIP OVERSEAS
PORTFOLIO
Value at beginning of period $10.000(8)
Value at end of period $10.197
Number of accumulation units
outstanding at end of period
FIDELITY VIP II ASSET
MANAGER PORTFOLIO
Value at beginning of period
Value at end of period
Number of accumulation units
outstanding at end of period
FIDELITY VIP II
CONTRAFUND[Reg TM]
PORTFOLIO
Value at beginning of period $10.000(6)
Value at end of period $11.763
Number of accumulation units
outstanding at end of period 525,476
FIDELITY VIP II INDEX 500
PORTFOLIO
Value at beginning of period
Value at end of period
Number of accumulation units
outstanding at end of period
JANUS ASPEN AGGRESSIVE
GROWTH PORTFOLIO
Value at beginning of period $12.169 $10.000(9)
Value at end of period $15.323 $12.169
Number of accumulation units
outstanding at end of period 1,280,953 393,553
JANUS ASPEN BALANCED
PORTFOLIO
Value at beginning of period $10.000(8)
Value at end of period $10.853
Number of accumulation units
outstanding at end of period 161
JANUS ASPEN FLEXIBLE
INCOME PORTFOLIO
Value at beginning of period $9.911 $10.000(10)
Value at end of period $12.124 $9.911
Number of accumulation units
outstanding at end of period 3,345 1,555
JANUS ASPEN GROWTH
PORTFOLIO
Value at beginning of period $10.000(8)
Value at end of period $11.859
Number of accumulation units
outstanding at end of period 109,717
</TABLE>
101
<PAGE>
Condensed Financial Information (continued)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
1999 1998 1997 1996
--------- ------- --------- ---------
<S> <C> <C> <C> <C>
JANUS ASPEN WORLDWIDE
GROWTH PORTFOLIO
Value at beginning of period $23.797 $18.690 $15.493 $12.158
Value at end of period $38.648 $23.797 $18.690 $15.493
Number of accumulation units
outstanding at end of period 5,548,674 4,687,167 3,873,511 2,090,908
LEXINGTON EMERGING
MARKETS FUND
Value at beginning of period $ 5.470
Value at end of period $12.315
Number of accumulation units
outstanding at end of period 940,817
LEXINGTON NATURAL
RESOURCES TRUST
Value at beginning of period $11.433 $14.403 $13.611 $10.862
Value at end of period $12.882 $11.433 $14.403 $13.611
Number of accumulation units
outstanding at end of period 437,491 534,962 650,486 587,248
MFS TOTAL RETURN
SERIES
Value at beginning of period $10.531
Value at end of period $10.720
Number of accumulation units
outstanding at end of period 63,822
OPPENHEIMER GLOBAL
SECURITIES FUND/VA
Value at beginning of period $10.303 $10.077(11)
Value at end of period $16.126 $10.303
Number of accumulation units
outstanding at end of period 59,571 20,548
OPPENHEIMER STRATEGIC
BOND FUND/VA
Value at beginning of period $9.935 $10.055(4)
Value at end of period $10.089 $9.935
Number of accumulation units
outstanding at end of period 173,219 100,555
PPI MFS CAPITAL
OPPORTUNITIES
PORTFOLIO
Value at beginning of period $29.339 $23.440 $23.106(12)
Value at end of period $43.112 $29.339 $23.440
Number of accumulation units
outstanding at end of period 2,448,587 2,244,308 2,018,219
PPI MFS EMERGING
EQUITIES PORTFOLIO
Value at beginning of period $19.268 $15.046 $15.236(12)
Value at end of period $28.710 $19.268 $15.046
Number of accumulation units
outstanding at end of period 3,024,975 3,101,880 2,707,904
PPI MFS RESEARCH
GROWTH PORTFOLIO
Value at beginning of period $14.528 $11.960 $12.195(12)
Value at end of period $17.796 $14.528 $11.960
Number of accumulation units
outstanding at end of period 194,296 1,379,653 232,418
PPI SCUDDER
INTERNATIONAL GROWTH
PORTFOLIO
Value at beginning of period $20.829 $17.709 $17.490(12)
Value at end of period $32.585 $20.829 $17.709
Number of accumulation units
outstanding at end of period 2,807,485 2,962,631 3,237,710
PPI T. ROWE PRICE
GROWTH EQUITY
PORTFOLIO
Value at beginning of period $20.929 $16.608 $16.276(12)
Value at end of period $25.283 $20.929 $16.608
Number of accumulation units
outstanding at end of period 1,549,310 1,564,888 1,317,058
<CAPTION>
1995 1994 1993 1992 1991 1990
--------- -------- -------- --------- --------- --------
<S> <C> <C> <C> <C> <C> <C>
JANUS ASPEN WORLDWIDE
GROWTH PORTFOLIO
Value at beginning of period $10.000(8)
Value at end of period $12.158
Number of accumulation units
outstanding at end of period 314,653
LEXINGTON EMERGING
MARKETS FUND
Value at beginning of period
Value at end of period
Number of accumulation units
outstanding at end of period
LEXINGTON NATURAL
RESOURCES TRUST
Value at beginning of period $9.412 $10.071 $9.193 $9.018 $9.608 $11.441
Value at end of period $10.862 $9.412 $10.071 $9.193 $9.018 $9.608
Number of accumulation units
outstanding at end of period 530,562 533,016 341,771 198,338 144,139 75,052
MFS TOTAL RETURN
SERIES
Value at beginning of period
Value at end of period
Number of accumulation units
outstanding at end of period
OPPENHEIMER GLOBAL
SECURITIES FUND/VA
Value at beginning of period
Value at end of period
Number of accumulation units
outstanding at end of period
OPPENHEIMER STRATEGIC
BOND FUND/VA
Value at beginning of period
Value at end of period
Number of accumulation units
outstanding at end of period
PPI MFS CAPITAL
OPPORTUNITIES
PORTFOLIO
Value at beginning of period
Value at end of period
Number of accumulation units
outstanding at end of period
PPI MFS EMERGING
EQUITIES PORTFOLIO
Value at beginning of period
Value at end of period
Number of accumulation units
outstanding at end of period
PPI MFS RESEARCH
GROWTH PORTFOLIO
Value at beginning of period
Value at end of period
Number of accumulation units
outstanding at end of period
PPI SCUDDER
INTERNATIONAL GROWTH
PORTFOLIO
Value at beginning of period
Value at end of period
Number of accumulation units
outstanding at end of period
PPI T. ROWE PRICE
GROWTH EQUITY
PORTFOLIO
Value at beginning of period
Value at end of period
Number of accumulation units
outstanding at end of period
</TABLE>
102
<PAGE>
Condensed Financial Information (continued)
- --------------------------------------------------------------------------------
(1) Funds were first received in this option during February 1997.
(2) Funds were first received in this option during September 1998.
(3) Funds were first received in this option during December 1997.
(4) Funds were first received in this option during May 1998.
(5) Funds were first received in this option during February 1997.
(6) The initial accumulation unit value was established at $10.000 during May
1995, when the fund became available under the contract.
(7) Funds were first received in this option during January 1997.
(8) The initial accumulation unit value was established at $10.000 during July
1995, when the fund became available under the contract.
(9) The initial accumulation unit value was established at $10.000 during June
1994, when funds were first received in this option.
(10) The initial accumulation unit value was established at $10.000 during
November 1994, when funds were first received in this option.
(11) Funds were first received in this option during June 1998.
(12) Funds were first received in this option during November 1997.
103
<PAGE>
Condensed Financial Information
- --------------------------------------------------------------------------------
TABLE XIII
FOR CONTRACTS ISSUED UNDER 403(b) PLANS AND DEFERRED COMPENSATION PLANS
WITH TOTAL SEPARATE ACCOUNT CHARGES OF 1.50%
(INCLUDING A 0.25% ADMINISTRATIVE EXPENSE CHARGE BEGINNING APRIL 7, 1997)
(Selected data for accumulation units outstanding throughout each period)
- --------------------------------------------------------------------------------
The condensed financial information presented below for each of the periods in
the three-year period ended December 31, 1999 (as applicable), is derived from
the financial statements of the separate account, which have been audited by
KPMG LLP, independent auditors. The financial statements and the independent
auditors' report thereon for the year ended December 31, 1999 are included in
the Statement of Additional Information.
<TABLE>
<CAPTION>
1999 1998 1997
------- --------- -------
<S> <C> <C> <C>
AETNA ASCENT VP
Value at beginning of period $15.818 $15.394 $13.020(1)
Value at end of period $17.818 $15.818 $15.394
Number of accumulation units outstanding at end of period 40,362 38,620 29,840
AETNA BALANCED VP
Value at beginning of period $21.629 $18.776 $15.674(1)
Value at end of period $24.206 $21.629 $18.776
Number of accumulation units outstanding at end of period 352,495 385,862 478,117
AETNA BOND VP
Value at beginning of period $14.076 $13.213 $12.302(1)
Value at end of period $13.764 $14.076 $13.213
Number of accumulation units outstanding at end of period 186,303 199,388 215,650
AETNA CROSSROADS VP
Value at beginning of period $15.055 $14.430 $12.449(1)
Value at end of period $16.346 $15.055 $14.430
Number of accumulation units outstanding at end of period 32,067 32,997 26,483
AETNA GROWTH VP(10)
Value at beginning of period $17.834 $13.149 $12.739(2)
Value at end of period $23.713 $17.834 $13.149
Number of accumulation units outstanding at end of period 63,831 36,839 3,326
AETNA GROWTH AND INCOME VP
Value at beginning of period $24.986 $22.153 $17.861(1)
Value at end of period $28.902 $24.986 $22.153
Number of accumulation units outstanding at end of period 1,449,638 1,587,351 1,699,982
AETNA HIGH YIELD VP
Value at beginning of period $9.196 $9.616(3)
Value at end of period $9.698 $9.196
Number of accumulation units outstanding at end of period 707 65
AETNA INDEX PLUS LARGE CAP VP
Value at beginning of period $18.691 $14.418 $11.345(1)
Value at end of period $22.887 $18.691 $14.418
Number of accumulation units outstanding at end of period 118,788 68,841 27,945
AETNA INDEX PLUS MID CAP VP
Value at beginning of period $10.872 $9.946(4)
Value at end of period $12.403 $10.872
Number of accumulation units outstanding at end of period 3,733 203
AETNA INDEX PLUS SMALL CAP VP
Value at beginning of period $8.800 $9.775(5)
Value at end of period $9.604 $8.800
Number of accumulation units outstanding at end of period 1,705 598
AETNA INTERNATIONAL VP
Value at beginning of period $9.748 $9.737(6)
Value at end of period $14.532 $9.748
Number of accumulation units outstanding at end of period 4,118 1,095
AETNA LEGACY VP
Value at beginning of period $14.187 $13.467 $11.873(1)
Value at end of period $14.967 $14.187 $13.467
Number of accumulation units outstanding at end of period 23,515 32,088 14,817
AETNA MONEY MARKET VP
Value at beginning of period $12.393 $11.929 $11.592(1)
Value at end of period $12.829 $12.393 $11.929
Number of accumulation units outstanding at end of period 136,761 123,429 176,703
AETNA REAL ESTATE SECURITIES VP
Value at beginning of period $8.857 $8.524(7)
Value at end of period $8.358 $8.857
Number of accumulation units outstanding at end of period 1,197 1,342
AETNA SMALL COMPANY VP
Value at beginning of period $13.574 $13.629 $13.629(2)
Value at end of period $17.497 $13.574 $13.629
Number of accumulation units outstanding at end of period 18,033 21,070 82
</TABLE>
104
<PAGE>
Condensed Financial Information (continued)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
1999 1998 1997
--------- ------- --------
<S> <C> <C> <C>
AETNA VALUE OPPORTUNITY VP
Value at beginning of period $15.960 $13.237 $13.237(2)
Value at end of period $18.801 $15.960 $13.237
Number of accumulation units outstanding at end of period 12,803 15,870 84
AIM V.I. CAPITAL APPRECIATION FUND
Value at beginning of period $10.165(8)
Value at end of period $13.729
Number of accumulation units outstanding at end of period 2,372
AIM V.I. GROWTH FUND
Value at beginning of period $10.209(10)
Value at end of period $12.048
Number of accumulation units outstanding at end of period 2,771
AIM V.I. GROWTH AND INCOME FUND
Value at beginning of period $9.684(9)
Value at end of period $11.695
Number of accumulation units outstanding at end of period 5,151
AIM V.I. VALUE FUND
Value at beginning of period $9.842(9)
Value at end of period $11.486
Number of accumulation units outstanding at end of period 2,077
CALVERT SOCIAL BALANCED PORTFOLIO
Value at beginning of period $20.397 $17.808 $14.934(1)
Value at end of period $22.550 $20.397 $17.808
Number of accumulation units outstanding at end of period 27,661 24,487 20,521
FIDELITY VIP EQUITY-INCOME PORTFOLIO
Value at beginning of period $17.384 $15.808 $12.711(1)
Value at end of period $18.209 $17.384 $15.808
Number of accumulation units outstanding at end of period 145,786 222,658 117,588
FIDELITY VIP GROWTH PORTFOLIO
Value at beginning of period $19.072 $13.879 $11.373(1)
Value at end of period $25.822 $19.072 $13.879
Number of accumulation units outstanding at end of period 200,009 228,969 104,982
FIDELITY VIP OVERSEAS PORTFOLIO
Value at beginning of period $13.603 $12.247 $11.253(1)
Value at end of period $19.112 $13.603 $12.247
Number of accumulation units outstanding at end of period 12,105 11,523 8,098
FIDELITY VIP II CONTRAFUND[Reg TM] PORTFOLIO
Value at beginning of period $19.516 $15.242 $12.388(1)
Value at end of period $23.889 $19.516 $15.242
Number of accumulation units outstanding at end of period 170,565 157,444 146,381
JANUS ASPEN AGGRESSIVE GROWTH PORTFOLIO
Value at beginning of period $20.861 $15.773 $12.594(1)
Value at end of period $46.323 $20.861 $15.773
Number of accumulation units outstanding at end of period 175,442 100,075 85,304
JANUS ASPEN BALANCED PORTFOLIO
Value at beginning of period $19.822 $14.984 $12.760(1)
Value at end of period $24.752 $19.822 $14.984
Number of accumulation units outstanding at end of period 84,774 53,980 19,967
JANUS ASPEN FLEXIBLE INCOME PORTFOLIO
Value at beginning of period $15.420 $14.347 $13.025(1)
Value at end of period $15.434 $15.420 $14.347
Number of accumulation units outstanding at end of period 13,514 14,524 8,189
JANUS ASPEN GROWTH PORTFOLIO
Value at beginning of period $20.562 $15.386 $12.975(1)
Value at end of period $29.166 $20.562 $15.386
Number of accumulation units outstanding at end of period 96,294 56,525 53,182
JANUS ASPEN WORLDWIDE GROWTH PORTFOLIO
Value at beginning of period $21.196 $16.689 $14.439(1)
Value at end of period $34.339 $21.196 $16.689
Number of accumulation units outstanding at end of period 215,248 182,951 168,191
LEXINGTON NATURAL RESOURCES TRUST
Value at beginning of period $12.283 $15.512 $13.756(1)
Value at end of period $13.805 $12.283 $15.512
Number of accumulation units outstanding at end of period 10,231 14,342 26,426
OPPENHEIMER GLOBAL SECURITIES FUND/VA
Value at beginning of period $10.001 $9.728(6)
Value at end of period $15.615 $10.001
Number of accumulation units outstanding at end of period 7,932 152
OPPENHEIMER STRATEGIC BOND FUND/VA
Value at beginning of period $9.878 $9.666(11)
Value at end of period $10.006 $9.878
Number of accumulation units outstanding at end of period 234 11
PPI MFS CAPITAL OPPORTUNITIES PORTFOLIO
Value at beginning of period $24.041 $19.256 $18.985(12)
Value at end of period $35.239 $24.041 $19.256
Number of accumulation units outstanding at end of period 34,760 28,002 25,830
</TABLE>
105
<PAGE>
Condensed Financial Information (continued)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
1999 1998 1997
-------- -------- ---------
<S> <C> <C> <C>
PPI MFS EMERGING EQUITIES PORTFOLIO
Value at beginning of period $19.032 $14.899 $15.090(12)
Value at end of period $28.288 $19.032 $14.899
Number of accumulation units outstanding at end of period 133,579 135,641 131,565
PPI MFS RESEARCH GROWTH PORTFOLIO
Value at beginning of period $16.685 $13.770 $14.044(12)
Value at end of period $20.388 $16.685 $13.770
Number of accumulation units outstanding at end of period 139,056 146,728 149,523
PPI SCUDDER INTERNATIONAL GROWTH PORTFOLIO
Value at beginning of period $19.892 $16.955 $16.749(12)
Value at end of period $31.043 $19.892 $16.955
Number of accumulation units outstanding at end of period 52,692 45,320 48,385
PPI T. ROWE PRICE GROWTH EQUITY PORTFOLIO
Value at beginning of period $18.068 $14.374 $14.090(12)
Value at end of period $21.773 $18.068 $14.374
Number of accumulation units outstanding at end of period 93,176 91,620 79,799
</TABLE>
- -----------------
(1) Funds were first received in this option during April 1997.
(2) Funds were first received in this option during December 1997.
(3) Funds were first received in this option during August 1998.
(4) Funds were first received in this option during July 1998.
(5) Funds were first received in this option during May 1998.
(6) Funds were first received in this option during June 1998.
(7) Funds were first received in this option during September 1998.
(8) Funds were first received in this option during August 1999.
(9) Funds were first received in this option during June 1999.
(10) Funds were first received in this option during July 1999.
(11) Funds were first received in this option during November 1998.
(12) Funds were first received in this option during November 1997.
106
<PAGE>
Condensed Financial Information
- --------------------------------------------------------------------------------
TABLE XIV
FOR CONTRACTS CONTAINING LIMITS ON FEES ISSUED UNDER 403(b) PLANS
AND DEFERRED COMPENSATION PLANS
(Selected data for accumulation units outstanding throughout each period)
- --------------------------------------------------------------------------------
The condensed financial information presented below for each of the periods in
the three-year period ended December 31, 1999 (as applicable), is derived from
the financial statements of the separate account, which have been audited by
KPMG LLP, independent auditors. The financial statements and the independent
auditors' report thereon for the year ended December 31, 1999 are included in
the Statement of Additional Information.
<TABLE>
<CAPTION>
1999 1998 1997
------- --------- --------
<S> <C> <C> <C>
AETNA ASCENT VP
Value at beginning of period $15.974 $15.453 $13.971(1)
Value at end of period $18.102 $15.974 $15.453
Number of accumulation units outstanding at end of period 7,679 9,888 10,257
AETNA BALANCED VP
Value at beginning of period $21.808 $18.837 $16.739(1)
Value at end of period $24.529 $21.808 $18.837
Number of accumulation units outstanding at end of period 343,842 429,954 454,232
AETNA BOND VP
Value at beginning of period $14.171 $13.249 $12.629(1)
Value at end of period $13.912 $14.171 $13.249
Number of accumulation units outstanding at end of period 347,131 421,225 453,723
AETNA CROSSROADS VP
Value at beginning of period $15.204 $14.485 $13.199(1)
Value at end of period $16.607 $15.204 $14.485
Number of accumulation units outstanding at end of period 47,768 50,297 50,297
AETNA GROWTH VP
Value at beginning of period $17.912 $13.173 $12.615(2)
Value at end of period $23.875 $17.912 $13.173
Number of accumulation units outstanding at end of period 48,373 25,257 1,565
AETNA GROWTH AND INCOME VP
Value at beginning of period $25.193 $22.226 $19.673(1)
Value at end of period $29.287 $25.193 $22.226
Number of accumulation units outstanding at end of period 4,958,303 5,670,691 6,093,102
AETNA HIGH YIELD VP
Value at beginning of period $9.212 $9.135(3)
Value at end of period $9.739 $9.212
Number of accumulation units outstanding at end of period 2,025 2,225
AETNA INDEX PLUS LARGE CAP VP
Value at beginning of period $18.802 $14.452 $12.748(1)
Value at end of period $23.103 $18.802 $14.452
Number of accumulation units outstanding at end of period 80,552 48,459 13,748
AETNA INDEX PLUS SMALL CAP VP
Value at beginning of period $8.815 $6.682(4)
Value at end of period $9.645 $8.815
Number of accumulation units outstanding at end of period 722 748
AETNA LEGACY VP
Value at beginning of period $14.327 $13.518 $12.496(1)
Value at end of period $15.206 $14.327 $13.518
Number of accumulation units outstanding at end of period 22,033 10,684 16,060
AETNA MONEY MARKET VP
Value at beginning of period $12.447 $11.951 $11.674(1)
Value at end of period $12.917 $12.447 $11.951
Number of accumulation units outstanding at end of period 515,621 553,915 591,901
AETNA SMALL COMPANY VP
Value at beginning of period $13.633 $13.654 $13.092(2)
Value at end of period $17.617 $13.633 $13.654
Number of accumulation units outstanding at end of period 7,350 4,297 1,779
AETNA VALUE OPPORTUNITY VP
Value at beginning of period $16.030 $12.899(5)
Value at end of period $18.930 $16.030
Number of accumulation units outstanding at end of period 10,011 5,261
AIM V.I. CAPITAL APPRECIATION FUND
Value at beginning of period $10.649(6)
Value at end of period $13.759
Number of accumulation units outstanding at end of period 2,465
AIM V.I. GROWTH AND INCOME FUND
Value at beginning of period $9.763(7)
Value at end of period $11.721
Number of accumulation units outstanding at end of period 4,408
AIM V.I. VALUE FUND
Value at beginning of period $9.778(8)
Value at end of period $11.511
Number of accumulation units outstanding at end of period 27,063
</TABLE>
107
<PAGE>
Condensed Financial Information (continued)
<TABLE>
<CAPTION>
1999 1998 1997
-------- ------- --------
<S> <C> <C> <C>
CALVERT SOCIAL BALANCED PORTFOLIO
Value at beginning of period $20.485 $17.840 $16.178(1)
Value at end of period $22.705 $20.485 $17.840
Number of accumulation units outstanding at end of period 1,312 3,612 3,576
FIDELITY VIP EQUITY-INCOME PORTFOLIO
Value at beginning of period $17.459 $15.837 $14.065(1)
Value at end of period $18.334 $17.459 $15.837
Number of accumulation units outstanding at end of period 31,846 44,812 49,884
FIDELITY VIP GROWTH PORTFOLIO
Value at beginning of period $19.155 $13.904 $12.498(1)
Value at end of period $25.999 $19.155 $13.904
Number of accumulation units outstanding at end of period 60,970 41,575 31,477
FIDELITY VIP OVERSEAS PORTFOLIO
Value at beginning of period $13.662 $12.269 $12.518(1)
Value at end of period $19.243 $13.662 $12.269
Number of accumulation units outstanding at end of period 1,456 1,816 1,206
FIDELITY VIP II CONTRAFUND[Reg TM] PORTFOLIO
Value at beginning of period $19.601 $15.270 $13.443(1)
Value at end of period $24.053 $19.601 $15.270
Number of accumulation units outstanding at end of period 35,985 31,455 29,365
JANUS ASPEN AGGRESSIVE GROWTH PORTFOLIO
Value at beginning of period $20.951 $15.801 $14.156(1)
Value at end of period $46.640 $20.951 $15.801
Number of accumulation units outstanding at end of period 63,769 32,182 26,177
JANUS ASPEN BALANCED PORTFOLIO
Value at beginning of period $19.908 $15.012 $13.573(1)
Value at end of period $24.922 $19.908 $15.012
Number of accumulation units outstanding at end of period 43,805 23,035 8,663
JANUS ASPEN FLEXIBLE INCOME PORTFOLIO
Value at beginning of period $15.487 $14.373 $13.448(1)
Value at end of period $15.540 $15.487 $14.373
Number of accumulation units outstanding at end of period 6,227 9,337 323
JANUS ASPEN GROWTH PORTFOLIO
Value at beginning of period $20.651 $15.414 $13.985(1)
Value at end of period $29.366 $20.651 $15.414
Number of accumulation units outstanding at end of period 28,974 7,088 6,389
JANUS ASPEN WORLDWIDE GROWTH PORTFOLIO
Value at beginning of period $21.288 $16.720 $15.828(1)
Value at end of period $34.574 $21.288 $16.720
Number of accumulation units outstanding at end of period 84,796 67,482 63,534
LEXINGTON NATURAL RESOURCES TRUST
Value at beginning of period $12.336 $15.541 $15.221(1)
Value at end of period $13.900 $12.336 $15.541
Number of accumulation units outstanding at end of period 900 745 8,053
OPPENHEIMER GLOBAL SECURITIES FUND/VA
Value at beginning of period $10.018 $8.115(4)
Value at end of period $15.681 $10.018
Number of accumulation units outstanding at end of period 6,425 2,465
PPI MFS CAPITAL OPPORTUNITIES PORTFOLIO
Value at beginning of period $24.145 $19.291 $19.016(9)
Value at end of period $35.480 $24.145 $19.291
Number of accumulation units outstanding at end of period 8,425 5,460 7,188
PPI MFS EMERGING EQUITIES PORTFOLIO
Value at beginning of period $19.114 $14.927 $15.114(9)
Value at end of period $28.481 $19.114 $14.927
Number of accumulation units outstanding at end of period 14,236 40,140 56,819
PPI MFS RESEARCH GROWTH PORTFOLIO
Value at beginning of period $16.758 $13.795 $14.067(9)
Value at end of period $20.527 $16.758 $13.795
Number of accumulation units outstanding at end of period 64,138 56,680 55,233
PPI SCUDDER INTERNATIONAL GROWTH PORTFOLIO
Value at beginning of period $19.978 $16.986 $16.776(9)
Value at end of period $31.255 $19.978 $16.986
Number of accumulation units outstanding at end of period 6,428 3,855 6,970
PPI T. ROWE PRICE GROWTH EQUITY PORTFOLIO
Value at beginning of period $18.146 $14.400 $14.112(9)
Value at end of period $21.922 $18.146 $14.400
Number of accumulation units outstanding at end of period 24,825 29,384 24,650
</TABLE>
- -----------------
(1) Funds were first received in this option during June 1997.
(2) Funds were first received in this option during December 1997.
(3) Funds were first received in this option during December 1998.
(4) Funds were first received in this option during October 1998.
(5) Funds were first received in this option during January 1998.
(6) Funds were first received in this option during July 1999.
(7) Funds were first received in this option during September 1999.
(8) Funds were first received in this option during May 1999.
(9) Funds were first received in this option during November 1997.
108
<PAGE>
Condensed Financial Information
- --------------------------------------------------------------------------------
TABLE XV
FOR DEFERRED COMPENSATION CONTRACTS WITH TOTAL SEPARATE ACCOUNT CHARGES
OF 0.95% EFFECTIVE ON JANUARY 15, 1996
(Selected data for accumulation units outstanding throughout each period)
- --------------------------------------------------------------------------------
The condensed financial information presented below for each of the periods in
the ten-year period ended December 31, 1999 (as applicable), is derived from
the financial statements of the separate account, which have been audited by
KPMG LLP, independent auditors. The financial statements and the independent
auditors' report thereon for the year ended December 31, 1999 are included in
the Statement of Additional Information. The accumulation unit values reflect a
mortality and expense risk charge of 1.25% until January 15, 1996, when the
mortality and expense risk charge was reduced to 0.95% during the accumulation
phase. It will increase to 1.25% during the income phase.
<TABLE>
<CAPTION>
1999 1998 1997 1996
------- ------- -------- --------
<S> <C> <C> <C> <C>
AETNA ASCENT VP
Value at beginning of period $16.028 $15.514 $13.063 $10.673
Value at end of period $18.172 $16.028 $15.514 $13.063
Number of accumulation units
outstanding at end of period 68,230 80,754 65,940 22,888
AETNA BALANCED VP, INC
Value at beginning of period $21.917 $18.922 $15.596 $13.673
Value at end of period $24.687 $21.917 $18.922 $15.596
Number of accumulation units
outstanding at end of period 725,533 768,510 776,268 768,178
AETNA BOND VP
Value at beginning of period $14.264 $13.316 $12.413 $12.098
Value at end of period $14.037 $14.264 $13.316 $12.413
Number of accumulation units
outstanding at end of period 345,815 389,466 328,774 354,731
AETNA CROSSROADS VP
Value at beginning of period $15.255 $14.541 $12.486 $10.612
Value at end of period $16.670 $15.255 $14.541 $12.486
Number of accumulation units
outstanding at end of period 69,848 78,788 71,276 35,151
AETNA GROWTH VP
Value at beginning of period $18.005 $13.202 $12.787(4)
Value at end of period $24.094 $18.005 $13.202
Number of accumulation units
outstanding at end of period 172,922 115,677 6,619
AETNA GROWTH AND
INCOME VP
Value at beginning of period $25.319 $22.325 $17.352 $14.077
Value at end of period $29.475 $25.319 $22.325 $17.352
Number of accumulation units
outstanding at end of period 4,530,330 5,019,611 5,232,193 4,796,196
AETNA HIGH YIELD VP
Value at beginning of period $9.2 31 $9.216(6)
Value at end of period $9.79 8 $9.231
Number of accumulation units
outstanding at end of period 6,160 1,842
AETNA INDEX PLUS
LARGE CAP VP
Value at beginning of period $18.902 $14.500 $10.934 $10.000(7)
Value at end of period $23.294 $18.902 $14.500 $10.934
Number of accumulation units
outstanding at end of period 580,525 386,036 159,318 27,436
AETNA INDEX PLUS MID
CAP VP
Value at beginning of period $10.913 $7.633(8)
Value at end of period $12.530 $10.913
Number of accumulation units
outstanding at end of period 32,617 5,166
AETNA INDEX PLUS SMALL
CAP VP
Value at beginning of period $8.834 $6.425(8)
Value at end of period $9.703 $8.834
Number of accumulation units
outstanding at end of period 14,120 6,054
AETNA INTERNATIONAL VP
Value at beginning of period $9.785 $8.779(8)
Value at end of period $14.682 9.785
Number of accumulation units
outstanding at end of period 5,886 583
<CAPTION>
1995 1994 1993 1992 1991 1990
----------- ---------- ----------- --------- ---------- ----------
<S> <C> <C> <C> <C> <C> <C>
AETNA ASCENT VP
Value at beginning of period $10.000(1)
Value at end of period $10.673
Number of accumulation units
outstanding at end of period 393,053
AETNA BALANCED VP, INC
Value at beginning of period $10.868 $11.057 $10.189 $12.736(2) $10.896 $10.437
Value at end of period $13.673 $10.868 $11.057 $10.189 $12.736 $10.896
Number of accumulation units
outstanding at end of period 38,152,395 23,139,604 11,368,365 11,508 22,898,099 17,078,985
AETNA BOND VP
Value at beginning of period $10.360 $10.905 $10.068 $36.789(3) $31.192 $28.943
Value at end of period $12.098 $10.360 $10.905 $10.068 $36.789 $31.192
Number of accumulation units
outstanding at end of period 21,379,976 11,713,354 4,084,142 3,870 7,844,412 6,984,793
AETNA CROSSROADS VP
Value at beginning of period $10.000(1)
Value at end of period $10.612
Number of accumulation units
outstanding at end of period 294,673
AETNA GROWTH VP
Value at beginning of period
Value at end of period
Number of accumulation units
outstanding at end of period
AETNA GROWTH AND
INCOME VP
Value at beginning of period $10.778 $11.020 $10.454 $97.165(5) $77.845 $76.311
Value at end of period $14.077 $10.778 $11.020 $10.454 $97.165 $77.845
Number of accumulation units
outstanding at end of period 188,964,022 114,733,035 44,166,470 21,250 20,948,226 18,362,906
AETNA HIGH YIELD VP
Value at beginning of period
Value at end of period
Number of accumulation units
outstanding at end of period
AETNA INDEX PLUS
LARGE CAP VP
Value at beginning of period
Value at end of period
Number of accumulation units
outstanding at end of period
AETNA INDEX PLUS MID
CAP VP
Value at beginning of period
Value at end of period
Number of accumulation units
outstanding at end of period
AETNA INDEX PLUS SMALL
CAP VP
Value at beginning of period
Value at end of period
Number of accumulation units
outstanding at end of period
AETNA INTERNATIONAL VP
Value at beginning of period
Value at end of period
Number of accumulation units
outstanding at end of period
</TABLE>
109
<PAGE>
Condensed Financial Information (continued)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
1999 1998 1997 1996 1995
-------- ------- -------- -------- -----------
<S> <C> <C> <C> <C> <C>
AETNA LEGACY VP
Value at beginning of period $14.375 $13.571 $11.965 $10.580 $10.000(1)
Value at end of period $15.264 $14.375 $13.571 $11.965 $10.580
Number of accumulation units
outstanding at end of period 53,313 63,385 38,899 13,861 143,637
AETNA MONEY MARKET VP
Value at beginning of period $12.558 $12.022 $11.506 $11.026 $10.528
Value at end of period $13.083 $12.558 $12.022 $11.506 $11.026
Number of accumulation units
outstanding at end of period 345,617 230,562 262,519 228,698 12,999,680
AETNA REAL ESTATE
SECURITIES VP
Value at beginning of period $8.89 1 $8.634(8)
Value at end of period $8.444 $8.891
Number of accumulation units
outstanding at end of period 13,312 673
AETNA SMALL COMPANY
VP
Value at beginning of period $13.704 $13.684 $13.119(4)
Value at end of period $17.778 $13.704 $13.684
Number of accumulation units
outstanding at end of period 58,528 61,244 1,098
AETNA VALUE
OPPORTUNITY VP
Value at beginning of period $16.113 $13.290 $13.037(10)
Value at end of period $19.103 $16.113 $13.290
Number of accumulation units
outstanding at end of period 52,283 54,627 3,417
CALVERT SOCIAL
BALANCED PORTFOLIO
Value at beginning of period $20.668 $17.946 $15.088 $13.527 $10.554
Value at end of period $22.998 $20.668 $17.946 $15.088 $13.527
Number of accumulation units
outstanding at end of period 68,703 71,154 66,428 57,557 966,098
FIDELITY VIP EQUITY-
INCOME PORTFOLIO
Value at beginning of period $17.615 $15.931 $12.554 $11.092 $10.000(1)
Value at end of period $18.570 $17.615 $15.931 $12.554 $11.092
Number of accumulation units
outstanding at end of period 222,000 239,214 196,921 116,432 1,660,304
FIDELITY VIP GROWTH
PORTFOLIO
Value at beginning of period $19.326 $13.987 $11.435 $10.066 $10.000(1)
Value at end of period $26.334 $19.326 $13.987 $11.435 $10.066
Number of accumulation units
outstanding at end of period 476,086 292,985 181,487 112,748 1,833,794
FIDELITY VIP OVERSEAS
PORTFOLIO
Value at beginning of period $13.784 $12.342 $11.169 $9.961 $10.000(1)
Value at end of period $19.492 $13.784 $12.342 $11.169 $9.961
Number of accumulation units
outstanding at end of period 24,274 26,108 22,047 10,848 196,090
FIDELITY VIP II
CONTRAFUND[Reg TM]
PORTFOLIO
Value at beginning of period $19.776 $15.360 $12.491 $10.397 $10.000(1)
Value at end of period $24.363 $19.776 $15.360 $12.491 $10.397
Number of accumulation units
outstanding at end of period 222,596 209,707 171,832 92,021 2,116,732
JANUS ASPEN AGGRESSIVE
GROWTH PORTFOLIO
Value at beginning of period $21.139 $15.895 $14.243 $13.322 $10.581
Value at end of period $47.242 $21.139 $15.895 $14.243 $13.322
Number of accumulation units
outstanding at end of period 582,335 283,821 253,316 226,504 4,887,060
JANUS ASPEN BALANCED
PORTFOLIO
Value at beginning of period $20.086 $15.100 $12.485 $10.850 $10.000(1)
Value at end of period $25.243 $20.086 $15.100 $12.485 $10.850
Number of accumulation units
outstanding at end of period 248,076 105,755 45,503 29,442 93,304
JANUS ASPEN FLEXIBLE
INCOME PORTFOLIO
Value at beginning of period $15.626 $14.458 $13.060 $12.077 $9.873
Value at end of period $15.741 $15.626 $14.458 $13.060 $12.077
Number of accumulation units
outstanding at end of period 53,088 57,101 13,925 6,607 315,361
<CAPTION>
1994 1993 1992 1991 1990
--------- ---------- -------- ------- ---------
<S> <C> <C> <C> <C> <C>
AETNA LEGACY VP
Value at beginning of period
Value at end of period
Number of accumulation units
outstanding at end of period
AETNA MONEY MARKET VP
Value at beginning of period $10.241 $10.048 $33.812(9) $32.138 $30.012
Value at end of period $10.528 $10.241 $10.048 $33.812 $32.138
Number of accumulation units
outstanding at end of period 7,673,528 2,766,044 825 8,430,082 10,220,110
AETNA REAL ESTATE
SECURITIES VP
Value at beginning of period
Value at end of period
Number of accumulation units
outstanding at end of period
AETNA SMALL COMPANY
VP
Value at beginning of period
Value at end of period
Number of accumulation units
outstanding at end of period
AETNA VALUE
OPPORTUNITY VP
Value at beginning of period
Value at end of period
Number of accumulation units
outstanding at end of period
CALVERT SOCIAL
BALANCED PORTFOLIO
Value at beginning of period $11.036 $10.278 $10.000(11)
Value at end of period $10.554 $11.036 $10.278
Number of accumulation units
outstanding at end of period 521,141 144,168 2,556
FIDELITY VIP EQUITY-
INCOME PORTFOLIO
Value at beginning of period
Value at end of period
Number of accumulation units
outstanding at end of period
FIDELITY VIP GROWTH
PORTFOLIO
Value at beginning of period
Value at end of period
Number of accumulation units
outstanding at end of period
FIDELITY VIP OVERSEAS
PORTFOLIO
Value at beginning of period
Value at end of period
Number of accumulation units
outstanding at end of period
FIDELITY VIP II
CONTRAFUND[Reg TM]
PORTFOLIO
Value at beginning of period
Value at end of period
Number of accumulation units
outstanding at end of period
JANUS ASPEN AGGRESSIVE
GROWTH PORTFOLIO
Value at beginning of period $10.000(12)
Value at end of period $10.581
Number of accumulation units
outstanding at end of period 753,862
JANUS ASPEN BALANCED
PORTFOLIO
Value at beginning of period
Value at end of period
Number of accumulation units
outstanding at end of period
JANUS ASPEN FLEXIBLE
INCOME PORTFOLIO
Value at beginning of period $10.000(12)
Value at end of period $9.873
Number of accumulation units
outstanding at end of period 28,543
</TABLE>
110
<PAGE>
Condensed Financial Information (continued)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
1999 1998 1997 1996
------- ------- ------- --------
<S> <C> <C> <C> <C>
JANUS ASPEN GROWTH
PORTFOLIO
Value at beginning of period $20.836 $15.505 $12.753 $10.870
Value at end of period $29.744 $20.836 $15.505 $12.753
Number of accumulation units
outstanding at end of period 260,307 128,844 83,855 51,761
JANUS ASPEN WORLDWIDE
GROWTH PORTFOLIO
Value at beginning of period $21.478 $16.819 $13.900 $10.877
Value at end of period $35.020 $21.478 $16.819 $13.900
Number of accumulation units
outstanding at end of period 771,009 655,881 511,940 212,494
LEXINGTON NATURAL
RESOURCES TRUST
Value at beginning of period $12.446 $15.633 $14.729 $11.720
Value at end of period $14.079 $12.446 $15.633 $14.729
Number of accumulation units
outstanding at end of period 26,550 37,897 73,258 42,174
OPPENHEIMER GLOBAL
SECURITIES FUND/VA
Value at beginning of period $10.039 $8.907(8)
Value at end of period $15.775 $10.039
Number of accumulation units
outstanding at end of period 14,291 774
OPPENHEIMER STRATEGIC
BOND FUND/VA
Value at beginning of period $9.915 $9.660(8)
Value at end of period $10.108 $9.915
Number of accumulation units
outstanding at end of period 1,294 176
PPI MFS CAPITAL
OPPORTUNITIES
PORTFOLIO
Value at beginning of period $24.361 $19.405 $19.123(13)
Value at end of period $35.938 $24.361 $19.405
Number of accumulation units
outstanding at end of period 184,604 182,557 192,553
PPI MFS EMERGING
EQUITIES PORTFOLIO
Value at beginning of period $19.285 $15.015 $15.199(13)
Value at end of period $28.849 $19.285 $15.015
Number of accumulation units
outstanding at end of period 587,576 595,462 573,528
PPI MFS RESEARCH
GROWTH PORTFOLIO
Value at beginning of period $16.907 $13.877 $14.147(13)
Value at end of period $20.792 $16.907 $13.877
Number of accumulation units
outstanding at end of period 333,629 378,798 418,965
PPI SCUDDER
INTERNATIONAL
GROWTH PORTFOLIO
Value at beginning of period $20.157 $17.087 $16.871(13)
Value at end of period $31.658 $20.157 $17.087
Number of accumulation units
outstanding at end of period 262,481 273,684 295,952
PPI T. ROWE PRICE
GROWTH EQUITY
PORTFOLIO
Value at beginning of period $18.309 $14.485 $14.192(13)
Value at end of period $22.205 $18.309 $14.485
Number of accumulation units
outstanding at end of period 297,723 277,044 212,654
<CAPTION>
1995 1994 1993 1992
----------- -------- ---------- --------
<S> <C> <C> <C> <C>
JANUS ASPEN GROWTH
PORTFOLIO
Value at beginning of period $10.000(1)
Value at end of period $10.870
Number of accumulation units
outstanding at end of period 259,196
JANUS ASPEN WORLDWIDE
GROWTH PORTFOLIO
Value at beginning of period $10.000(1)
Value at end of period $10.877
Number of accumulation units
outstanding at end of period 1,036,040
LEXINGTON NATURAL
RESOURCES TRUST
Value at beginning of period $10.154 $10.877 $ 9.832 $10.000(11)
Value at end of period $11.720 $10.154 $10.877 $9.832
Number of accumulation units
outstanding at end of period 711,892 703,676 135,614 561
OPPENHEIMER GLOBAL
SECURITIES FUND/VA
Value at beginning of period
Value at end of period
Number of accumulation units
outstanding at end of period
OPPENHEIMER STRATEGIC
BOND FUND/VA
Value at beginning of period
Value at end of period
Number of accumulation units
outstanding at end of period
PPI MFS CAPITAL
OPPORTUNITIES
PORTFOLIO
Value at beginning of period
Value at end of period
Number of accumulation units
outstanding at end of period
PPI MFS EMERGING
EQUITIES PORTFOLIO
Value at beginning of period
Value at end of period
Number of accumulation units
outstanding at end of period
PPI MFS RESEARCH
GROWTH PORTFOLIO
Value at beginning of period
Value at end of period
Number of accumulation units
outstanding at end of period
PPI SCUDDER
INTERNATIONAL
GROWTH PORTFOLIO
Value at beginning of period
Value at end of period
Number of accumulation units
outstanding at end of period
PPI T. ROWE PRICE
GROWTH EQUITY
PORTFOLIO
Value at beginning of period
Value at end of period
Number of accumulation units
outstanding at end of period
</TABLE>
- -----------------
(1) The initial accumulation unit value was established at $10.000 during
August 1995, when the fund became available under the contract.
(2) The accumulation unit value was converted to $10.000 on August 21, 1992
upon the commencement of a new administrative system. Immediately prior to
that date, the accumulation unit value of the fund was $13.118. On the
date of conversion, additional units were issued so that account values
were not changed as a result of the conversion.
(3) The accumulation unit value was converted to $10.000 on August 21, 1992
upon the commencement of a new administrative system. Immediately prior to
that date, the accumulation unit value of the fund was $38.521. On the
date of conversion, additional units were issued so that account values
were not changed as a result of the conversion.
111
<PAGE>
Condensed Financial Information (continued)
- --------------------------------------------------------------------------------
(4) Funds were first received in this option during December 1997.
(5) The accumulation unit value was converted to $10.000 on August 21, 1992
upon the commencement of a new administrative system. Immediately prior to
that date, the accumulation unit value of the fund was $97.817. On the
date of conversion, additional units were issued so that account values
were not changed as a result of the conversion.
(6) Funds were first received in this option during November 1998.
(7) The initial accumulation unit value was established during August 1996
when the portfolio became available under the contract, when funds were
first received in this option or when the applicable daily asset charge
was first utilized. Funds were first received in this option during
October 1998.
(8) Funds were first received in this option during October 1998.
(9) The accumulation unit value was converted to $10.000 on August 21, 1992
upon the commencement of a new administrative system. Immediately prior to
that date, the accumulation unit value of the fund was $34.397. On the
date of conversion, additional units were issued so that account values
were not changed as a result of the conversion.
(10) Funds were first received in this option during August 1997.
(11) The initial accumulation unit value was established at $10.000 on August
21, 1992, the date on which the fund/portfolio became available under
contract.
(12) The initial accumulation unit value was established at $10.000 during
October 1994, when the funds were first received in this option.
(13) Funds were first received in this option during November 1997.
112
<PAGE>
Condensed Financial Information
- --------------------------------------------------------------------------------
TABLE XVI
FOR DEFERRED COMPENSATION CONTRACTS WITH TOTAL SEPARATE ACCOUNT CHARGES
OF 0.95% EFFECTIVE ON MAY 25, 1996
(Selected data for accumulation units outstanding throughout each period)
- --------------------------------------------------------------------------------
The condensed financial information presented below for each of the periods in
the ten-year period ended December 31, 1999 (as applicable), is derived from
the financial statements of the separate account, which have been audited by
KPMG LLP, independent auditors. The financial statements and the independent
auditors' report thereon for the year ended December 31, 1999 are included in
the Statement of Additional Information. The accumulation unit values reflect a
mortality and expense risk charge of 1.25% until May 25, 1996, when the
mortality and expense risk charge was reduced to 0.95% during the accumulation
phase. It will increase to 1.25% during the income phase.
<TABLE>
<CAPTION>
1999 1998 1997 1996
-------- ------- --------- ----------
<S> <C> <C> <C> <C>
AETNA ASCENT VP
Value at beginning of period $16.011 $15.497 $13.049 $10.673
Value at end of period $18.135 $16.011 $15.497 $13.049
Number of accumulation units
outstanding at end of period 11,396 29,149 178,233 35,180
AETNA BALANCED VP, INC
Value at beginning of period $21.893 $18.901 $15.579 $13.673
Value at end of period $24.637 $21.893 $18.901 $15.579
Number of accumulation units
outstanding at end of period 127,612 266,636 1,511,041 1,528,051
AETNA BOND VP
Value at beginning of period $14.248 $13.301 $12.399 $12.098
Value at end of period $14.009 $14.248 $13.301 $12.399
Number of accumulation units
outstanding at end of period 128,235 200,650 463,068 493,485
AETNA CROSSROADS VP
Value at beginning of period $15.239 $14.526 $12.473 $10.612
Value at end of period $16.637 $15.239 $14.526 $12.473
Number of accumulation units
outstanding at end of period 10,401 30,057 99,660 28,829
AETNA GROWTH VP
Value at beginning of period $18.005 $13.202 $12.975(4)
Value at end of period $24.071 $18.005 $13.202
Number of accumulation units
outstanding at end of period 26,330 81,693 4,360
AETNA GROWTH AND
INCOME VP
Value at beginning of period $25.291 $22.301 $17.333 $14.077
Value at end of period $29.416 $25.291 $22.301 $17.333
Number of accumulation units
outstanding at end of period 1,028,949 2,491,029 7,667,724 7,250,286
AETNA HIGH YIELD VP
Value at beginning of period $9.231 $8.889(6)
Value at end of period $9.789 $9.231
Number of accumulation units
outstanding at end of period 5 17
AETNA INDEX PLUS LARGE
CAP VP
Value at beginning of period $18.902 $14.500 $10.934 $10.000(7)
Value at end of period $23.273 $18.902 $14.500 $10.934
Number of accumulation units
outstanding at end of period 83,941 145,736 190,348 28,473
AETNA INDEX PLUS MID
CAP VP
Value at beginning of period $10.913 $9.927(8)
Value at end of period $12.519 $10.913
Number of accumulation units
outstanding at end of period 5,399 9,117
AETNA INDEX PLUS SMALL
CAP VP
Value at beginning of period $8.834 $9.997(8)
Value at end of period $9.694 $8.834
Number of accumulation units
outstanding at end of period 5,249 12,800
AETNA INTERNATIONAL VP
Value at beginning of period $9.785 $10.183(8)
Value at end of period $14.668 $9.785
Number of accumulation units
outstanding at end of period 1,203 7,767
<CAPTION>
1995 1994 1993 1992 1991 1990
---------- ---------- ---------- ------ ---------- ----------
<S> <C> <C> <C> <C> <C> <C>
AETNA ASCENT VP
Value at beginning of period $10.000(1)
Value at end of period $10.673
Number of accumulation units
outstanding at end of period 393,053
AETNA BALANCED VP, INC
Value at beginning of period $10.868 $11.057 $10.189 $12.736(2) $10.896 $10.437
Value at end of period $13.673 $10.868 $11.057 $10.189 $12.736 $10.896
Number of accumulation units
outstanding at end of period 38,152,395 23,139,604 11,368,365 11,508 22,898,099 17,078,985
AETNA BOND VP
Value at beginning of period $10.360 $10.905 $10.068 $36.789(3) $31.192 $28.943
Value at end of period $12.098 $10.360 $10.905 $10.068 $36.789 $31.192
Number of accumulation units
outstanding at end of period 21,379,976 11,713,354 4,084,142 3,870 7,844,412 6,984,793
AETNA CROSSROADS VP
Value at beginning of period $10.000(1)
Value at end of period $10.612
Number of accumulation units
outstanding at end of period 294,673
AETNA GROWTH VP
Value at beginning of period
Value at end of period
Number of accumulation units
outstanding at end of period
AETNA GROWTH AND
INCOME VP
Value at beginning of period $10.778 $11.020 $10.454 $97.165(5) $77.845 $76.311
Value at end of period $14.077 $10.778 $11.020 $10.454 $97.165 $77.845
Number of accumulation units
outstanding at end of period 188,964,022 114,733,035 44,166,470 21,250 20,948,226 18,362,906
AETNA HIGH YIELD VP
Value at beginning of period
Value at end of period
Number of accumulation units
outstanding at end of period
AETNA INDEX PLUS LARGE
CAP VP
Value at beginning of period
Value at end of period
Number of accumulation units
outstanding at end of period
AETNA INDEX PLUS MID
CAP VP
Value at beginning of period
Value at end of period
Number of accumulation units
outstanding at end of period
AETNA INDEX PLUS SMALL
CAP VP
Value at beginning of period
Value at end of period
Number of accumulation units
outstanding at end of period
AETNA INTERNATIONAL VP
Value at beginning of period
Value at end of period
Number of accumulation units
outstanding at end of period
</TABLE>
113
<PAGE>
Condensed Financial Information (continued)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
1999 1998 1997 1996
------- -------- ------- --------
<S> <C> <C> <C> <C>
AETNA LEGACY VP
Value at beginning of period $14.361 $13.557 $11.953 $10.580
Value at end of period $15.234 $14.361 $13.557 $11.953
Number of accumulation units
outstanding at end of period 3,379 17,756 58,121 15,755
AETNA MONEY MARKET VP
Value at beginning of period $12.545 $12.009 $11.494 $11.026
Value at end of period $13.057 $12.545 $12.009 $11.494
Number of accumulation units
outstanding at end of period $117,934 132,737 328,674 351,832
AETNA REAL ESTATE
SECURITIES VP
Value at beginning of period $8.891 $10.127(8)
Value at end of period $8.436 $8.891
Number of accumulation units
outstanding at end of period 1,264 11,639
AETNA SMALL COMPANY
VP
Value at beginning of period $13.704 $13.684 $13.248(4)
Value at end of period $17.762 $13.704 $13.684
Number of accumulation units
outstanding at end of period 12,642 52,936 12,603
AETNA VALUE
OPPORTUNITY VP
Value at beginning of period $16.113 $13.290 $13.093(4)
Value at end of period $19.085 $16.113 $13.290
Number of accumulation units
outstanding at end of period 3,855 19,971 8,131
AIM V.I. GROWTH FUND
Value at beginning of period $10.229(10)
Value at end of period $12.098
Number of accumulation units
outstanding at end of period 110
AIM V.I. GROWTH AND
INCOME FUND
Value at beginning of period $9.645(11)
Value at end of period $11.710
Number of accumulation units
outstanding at end of period 328
AIM V.I. VALUE FUND
Value at beginning of period $9.915(12)
Value at end of period $11.495
Number of accumulation units
outstanding at end of period 181
CALVERT SOCIAL
BALANCED PORTFOLIO
Value at beginning of period $20.646 $17.926 $15.071 $13.527
Value at end of period $22.951 $20.646 $17.926 $15.071
Number of accumulation units
outstanding at end of period 16,438 21,808 40,783 35,511
FIDELITY VIP EQUITY-
INCOME PORTFOLIO
Value at beginning of period $17.596 $15.914 $12.541 $11.092
Value at end of period $18.533 $17.596 $15.914 $12.541
Number of accumulation units
outstanding at end of period 30,245 74,067 121,281 82,568
FIDELITY VIP GROWTH
PORTFOLIO
Value at beginning of period $19.305 $13.972 $11.423 $10.066
Value at end of period $26.281 $19.305 $13.972 $11.423
Number of accumulation units
outstanding at end of period 77,945 100,561 176,877 135,704
FIDELITY VIP OVERSEAS
PORTFOLIO
Value at beginning of period $13.769 $12.328 $11.157 $9.961
Value at end of period $19.452 $13.769 $12.328 $11.157
Number of accumulation units
outstanding at end of period 7,531 14,165 40,516 29,108
FIDELITY VIP II
CONTRAFUND[Reg TM]
PORTFOLIO
Value at beginning of period $19.755 $15.343 $12.477 $10.397
Value at end of period $24.314 $19.755 $15.343 $12.477
Number of accumulation units
outstanding at end of period 79,042 176,553 320,226 175,463
<CAPTION>
1995 1994 1993 1992 1991 1990
----------- ---------- --------- --------- --------- ---------
<S> <C> <C> <C> <C> <C> <C>
AETNA LEGACY VP
Value at beginning of period $10.000(1)
Value at end of period $10.580
Number of accumulation units
outstanding at end of period 143,637
AETNA MONEY MARKET VP
Value at beginning of period $10.528 $10.241 $10.048 $33.812(9) $32.138 $30.012
Value at end of period $11.026 $10.528 $10.241 $10.048 $33.812 $32.138
Number of accumulation units
outstanding at end of period 12,999,680 7,673,528 2,766,044 825 8,430,082 10,220,110
AETNA REAL ESTATE
SECURITIES VP
Value at beginning of period
Value at end of period
Number of accumulation units
outstanding at end of period
AETNA SMALL COMPANY
VP
Value at beginning of period
Value at end of period
Number of accumulation units
outstanding at end of period
AETNA VALUE
OPPORTUNITY VP
Value at beginning of period
Value at end of period
Number of accumulation units
outstanding at end of period
AIM V.I. GROWTH FUND
Value at beginning of period
Value at end of period
Number of accumulation units
outstanding at end of period
AIM V.I. GROWTH AND
INCOME FUND
Value at beginning of period
Value at end of period
Number of accumulation units
outstanding at end of period
AIM V.I. VALUE FUND
Value at beginning of period
Value at end of period
Number of accumulation units
outstanding at end of period
CALVERT SOCIAL
BALANCED PORTFOLIO
Value at beginning of period $10.554 $11.036 $10.278 $10.000(13)
Value at end of period $13.527 $10.554 $11.036 $10.278
Number of accumulation units
outstanding at end of period 966,098 521,141 144,168 2,556
FIDELITY VIP EQUITY-
INCOME PORTFOLIO
Value at beginning of period $10.000(1)
Value at end of period $11.092
Number of accumulation units
outstanding at end of period 1,660,304
FIDELITY VIP GROWTH
PORTFOLIO
Value at beginning of period $10.000(1)
Value at end of period $10.066
Number of accumulation units
outstanding at end of period 1,833,794
FIDELITY VIP OVERSEAS
PORTFOLIO
Value at beginning of period $10.000(1)
Value at end of period $9.961
Number of accumulation units
outstanding at end of period 196,090
FIDELITY VIP II
CONTRAFUND[Reg TM]
PORTFOLIO
Value at beginning of period $10.000(1)
Value at end of period $10.397
Number of accumulation units
outstanding at end of period 2,116,732
</TABLE>
114
<PAGE>
Condensed Financial Information (continued)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
1999 1998 1997 1996
-------- ------- ------- -------
<S> <C> <C> <C> <C>
JANUS ASPEN AGGRESSIVE
GROWTH PORTFOLIO
Value at beginning of period $21.116 $15.878 $14.227 $13.322
Value at end of period $47.147 $21.116 $15.878 $14.227
Number of accumulation units
outstanding at end of period 98,304 120,002 211,783 171,747
JANUS ASPEN BALANCED
PORTFOLIO
Value at beginning of period $20.064 $15.084 $12.472 $10.850
Value at end of period $25.192 $20.064 $15.084 $12.472
Number of accumulation units
outstanding at end of period 54,960 45,435 58,999 29,198
JANUS ASPEN FLEXIBLE
INCOME PORTFOLIO
Value at beginning of period $15.609 $14.442 $13.046 $12.077
Value at end of period $15.709 $15.609 $14.442 $13.046
Number of accumulation units
outstanding at end of period 5,620 10,857 11,145 9,054
JANUS ASPEN GROWTH
PORTFOLIO
Value at beginning of period $20.813 $15.489 $12.739 $10.870
Value at end of period $29.684 $20.813 $15.489 $12.739
Number of accumulation units
outstanding at end of period 52,381 47,157 86,733 67,001
JANUS ASPEN WORLDWIDE
GROWTH PORTFOLIO
Value at beginning of period $21.455 $16.800 $13.885 $10.877
Value at end of period $34.949 $21.455 $16.800 $13.885
Number of accumulation units
outstanding at end of period 109,644 236,904 586,164 241,823
LEXINGTON NATURAL
RESOURCES TRUST
Value at beginning of period $12.433 $15.616 $14.713 $11.720
Value at end of period $14.051 $12.433 $15.616 $14.713
Number of accumulation units
outstanding at end of period 5,186 16,414 72,475 43,665
OPPENHEIMER GLOBAL
SECURITIES FUND/VA
Value at beginning of period $10.039 $10.080(8)
Value at end of period $15.760 $10.039
Number of accumulation units
outstanding at end of period 595 3,153
OPPENHEIMER STRATEGIC
BOND FUND/VA
Value at beginning of period $9.915 $10.056(15)
Value at end of period $10.099 $9.915
Number of accumulation units
outstanding at end of period 597 1,158
PPI MFS CAPITAL
OPPORTUNITIES
PORTFOLIO
Value at beginning of period $24.335 $19.384 $19.102 (16)
Value at end of period $35.866 $24.335 $19.384
Number of accumulation units
outstanding at end of period 20,453 48,711 84,592
PPI MFS EMERGING
EQUITIES PORTFOLIO
Value at beginning of period $19.264 $14.999 $15.183 (16)
Value at end of period $28.791 $19.264 $14.999
Number of accumulation units
outstanding at end of period 67,372 289,625 586,517
PPI MFS RESEARCH
GROWTH PORTFOLIO
Value at beginning of period $16.889 $13.862 $14.131 (16)
Value at end of period $20.750 $16.889 $13.862
Number of accumulation units
outstanding at end of period 50,206 158,866 317,033
PPI SCUDDER
INTERNATIONAL GROWTH
PORTFOLIO
Value at beginning of period $20.135 $17.068 $16.853 (16)
Value at end of period $31.595 $20.135 $17.068
Number of accumulation units
outstanding at end of period 29,731 81,257 273,402
<CAPTION>
1995 1994 1993 1992
--------- ---------- ---------- ---------
<S> <C> <C> <C> <C>
JANUS ASPEN AGGRESSIVE
GROWTH PORTFOLIO
Value at beginning of period $10.581 $10.000(14)
Value at end of period $13.322 $10.581
Number of accumulation units
outstanding at end of period 4,887,060 753,862
JANUS ASPEN BALANCED
PORTFOLIO
Value at beginning of period $10.000(1)
Value at end of period $10.850
Number of accumulation units
outstanding at end of period 93,304
JANUS ASPEN FLEXIBLE
INCOME PORTFOLIO
Value at beginning of period $9.873 $10.000(14)
Value at end of period $12.077 $9.873
Number of accumulation units
outstanding at end of period 315,361 28,543
JANUS ASPEN GROWTH
PORTFOLIO
Value at beginning of period $10.000(1)
Value at end of period $10.870
Number of accumulation units
outstanding at end of period 259,196
JANUS ASPEN WORLDWIDE
GROWTH PORTFOLIO
Value at beginning of period $10.000(1)
Value at end of period $10.877
Number of accumulation units
outstanding at end of period 1,036,040
LEXINGTON NATURAL
RESOURCES TRUST
Value at beginning of period $10.154 $10.877 $9.832 $10.000(13)
Value at end of period $11.720 $10.154 $10.877 $9.832
Number of accumulation units
outstanding at end of period 711,892 703,676 135,614 561
OPPENHEIMER GLOBAL
SECURITIES FUND/VA
Value at beginning of period
Value at end of period
Number of accumulation units
outstanding at end of period
OPPENHEIMER STRATEGIC
BOND FUND/VA
Value at beginning of period
Value at end of period
Number of accumulation units
outstanding at end of period
PPI MFS CAPITAL
OPPORTUNITIES
PORTFOLIO
Value at beginning of period
Value at end of period
Number of accumulation units
outstanding at end of period
PPI MFS EMERGING
EQUITIES PORTFOLIO
Value at beginning of period
Value at end of period
Number of accumulation units
outstanding at end of period
PPI MFS RESEARCH
GROWTH PORTFOLIO
Value at beginning of period
Value at end of period
Number of accumulation units
outstanding at end of period
PPI SCUDDER
INTERNATIONAL GROWTH
PORTFOLIO
Value at beginning of period
Value at end of period
Number of accumulation units
outstanding at end of period
</TABLE>
115
<PAGE>
Condensed Financial Information (continued)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
1999 1998 1997 1996 1995 1994 1993 1992 1991 1990
------- -------- --------- ---- ---- ---- ---- ---- ---- ----
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
PPI T. ROWE PRICE
GROWTH EQUITY
PORTFOLIO
Value at beginning of period $18.289 $14.470 $14.176(16)
Value at end of period $22.160 $18.289 $14.470
Number of accumulation units
outstanding at end of period 31,427 84,842 227,469
</TABLE>
- -----------------
(1) The initial accumulation unit value was established at $10.000 during
August 1995, when the fund became available under the contract.
(2) The accumulation unit value was converted to $10.000 on August 21, 1992
upon the commencement of a new administrative system. Immediately prior to
that date, the accumulation unit value of the fund was $13.118. On the
date of conversion, additional units were issued so that account values
were not changed as a result of the conversion.
(3) The accumulation unit value was converted to $10.000 on August 21, 1992
upon the commencement of a new administrative system. Immediately prior to
that date, the accumulation unit value of the fund was $38.521. On the
date of conversion, additional units were issued so that account values
were not changed as a result of the conversion.
(4) Funds were first received in this option during December 1997.
(5) The accumulation unit value was converted to $10.000 on August 21, 1992
upon the commencement of a new administrative system. Immediately prior to
that date, the accumulation unit value of the fund was $97.817. On the
date of conversion, additional units were issued so that account values
were not changed as a result of the conversion.
(6) Funds were first received in this option during October 1998.
(7) The initial accumulation unit value was established during August 1996
when the portfolio became available under the contract, when funds were
first received in this option or when the applicable daily asset charge
was first utilized.
(8) Funds were first received in this option during May 1998.
(9) The accumulation unit value was converted to $10.000 on August 21, 1992
upon the commencement of a new administrative system. Immediately prior to
that date, the accumulation unit value of the fund was $34.397. On the
date of conversion, additional units were issued so that account values
were not changed as a result of the conversion.
(10) Funds were first received in this option during July 1999.
(11) Funds were first received in this option during September 1999.
(12) Funds were first received in this option during June 1999.
(13) The initial accumulation unit value was established at $10.000 August 21,
1992, the date on which the fund/portfolio became available under the
contract.
(14) The initial accumulation unit value was established at $10.000 during
October 1994, when the funds were first received in this option.
(15) Funds were first received in this option during July 1998.
(16) Funds were first received in this option during November 1997.
116
<PAGE>
Condensed Financial Information
- --------------------------------------------------------------------------------
TABLE XVII
FOR DEFERRED COMPENSATION CONTRACTS WITH TOTAL SEPARATE ACCOUNT CHARGES
OF 0.95% EFFECTIVE ON OR AFTER DECEMBER 16, 1996
(Selected data for accumulation units outstanding throughout each period)
================================================================================
The condensed financial information presented below for each of the periods in
the ten-year period ended December 31, 1999 (as applicable), is derived from
the financial statements of the separate account, which have been audited by
KPMG LLP, independent auditors. The financial statements and the independent
auditors' report thereon for the year ended December 31, 1999 are included in
the Statement of Additional Information. The accumulation unit values reflect a
mortality and expense risk charge of 1.25% until December 16, 1996, when the
mortality and expense risk charge was reduced to 0.95% during the accumulation
phase. It will increase to 1.25% during the income phase. The class of
accumulation unit value shown below may also be used for contracts with 0.95%
total separate account charges issued after December 16, 1996; however, the
condensed financial information for periods prior to December 16, 1996 will not
be applicable.
<TABLE>
<CAPTION>
1999 1998 1997 1996 1995
------- ------- ------- ------- -------
<S> <C> <C> <C> <C> <C
AETNA ASCENT VP
Value at beginning of period $15.984 $15.471 $13.027 $10.673 $10.000(1)
Value at end of period $18.105 $15.984 $15.471 $13.027 $10.673
Number of accumulation units
outstanding at end of period 11,315 38,675 86,255 32,497 393,053
AETNA BALANCED VP, INC
Value at beginning of period $21.857 $18.870 $15.553 $13.673 $10.868
Value at end of period $24.596 $21.857 $18.870 $15.553 $13.673
Number of accumulation units
outstanding at end of period 86,058 771,906 1,144,876 270,688 38,152,395
AETNA BOND VP
Value at beginning of period $14.225 $13.279 $12.379 $12.098 $10.360
Value at end of period $13.986 $14.225 $13.279 $12.379 $12.098
Number of accumulation units
outstanding at end of period 114,359 289,651 553,279 159,594 21,379,976
AETNA CROSSROADS VP
Value at beginning of period $15.214 $14.501 $12.452 $10.612 $10.000(1)
Value at end of period $16.609 $15.214 $14.501 $12.452 $10.612
Number of accumulation units
outstanding at end of period 14,627 100,734 101,836 9,415 294,673
AETNA GROWTH VP
Value at beginning of period $18.005 $13.202 $12.912(4)
Value at end of period $24.071 $18.005 $13.202
Number of accumulation units
outstanding at end of period 24,434 59,374 7
AETNA GROWTH AND
INCOME VP
Value at beginning of period $25.249 $22.264 $17.304 $14.077 $10.778
Value at end of period $29.367 $25.249 $22.264 $17.304 $14.077
Number of accumulation units
outstanding at end of period 975,160 4,070,904 8,238,898 3,033,655 188,964,022
AETNA HIGH YIELD VP
Value at beginning of period $9.231 $10.044(6)
Value at end of period $9.789 $9.231
Number of accumulation units
outstanding at end of period 1,594 1,308
AETNA INDEX PLUS LARGE
CAP VP
Value at beginning of period $18.888 $14.489 $10.925 $11.038(7)
Value at end of period $23.256 $18.888 $14.489 $10.925
Number of accumulation units
outstanding at end of period 37,025 136,252 293,223 23,856
AETNA INDEX PLUS MID
CAP VP
Value at beginning of period $10.913 $9.962(8)
Value at end of period $12.519 $10.913
Number of accumulation units
outstanding at end of period 3,069 26,111
AETNA INDEX PLUS SMALL
CAP VP
Value at beginning of period $8.834 $9.876(8)
Value at end of period $9.694 $8.834
Number of accumulation units
outstanding at end of period 1,965 26,257
<CAPTION>
1994 1993 1992 1991 1990
------- ------- ------- ------- -------
<S> <C> <C> <C> <C> <C
AETNA ASCENT VP
Value at beginning of period
Value at end of period
Number of accumulation units
outstanding at end of period
AETNA BALANCED VP, INC
Value at beginning of period $11.057 $10.189 $12.736(2) $10.896 $10.437
Value at end of period $10.868 $11.057 $10.189 $12.736 $10.896
Number of accumulation units
outstanding at end of period 23,139,604 11,368,365 11,508 22,898,099 17,078,985
AETNA BOND VP
Value at beginning of period $10.905 $10.068 $36.789(3) $31.192 $28.943
Value at end of period $10.360 $10.905 $10.068 $36.789 $31.192
Number of accumulation units
outstanding at end of period 11,713,354 4,084,142 3,870 7,844,412 6,984,793
AETNA CROSSROADS VP
Value at beginning of period
Value at end of period
Number of accumulation units
outstanding at end of period
AETNA GROWTH VP
Value at beginning of period
Value at end of period
Number of accumulation units
outstanding at end of period
AETNA GROWTH AND
INCOME VP
Value at beginning of period $11.020 $10.454 $97.165(5) $77.845 $76.311
Value at end of period $10.778 $11.020 $10.454 $97.165 $77.845
Number of accumulation units
outstanding at end of period 114,733,035 44,166,470 21,250 20,948,226 18,362,906
AETNA HIGH YIELD VP
Value at beginning of period
Value at end of period
Number of accumulation units
outstanding at end of period
AETNA INDEX PLUS LARGE
CAP VP
Value at beginning of period
Value at end of period
Number of accumulation units
outstanding at end of period
AETNA INDEX PLUS MID
CAP VP
Value at beginning of period
Value at end of period
Number of accumulation units
outstanding at end of period
AETNA INDEX PLUS SMALL
CAP VP
Value at beginning of period
Value at end of period
Number of accumulation units
outstanding at end of period
</TABLE>
117
<PAGE>
Condensed Financial Information (continued)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
1999 1998 1997 1996 1995
-------- ------- ------- ------- ----------
<S> <C> <C> <C> <C> <C>
AETNA INTERNATIONAL VP
Value at beginning of period $9.785 $9.974(9)
Value at end of period $14.668 $9.785
Number of accumulation units
outstanding at end of period 752 168
AETNA LEGACY VP
Value at beginning of period $14.336 $13.534 $11.932 $10.580 $10.000(1)
Value at end of period $15.208 $14.336 $13.534 $11.932 $10.580
Number of accumulation units
outstanding at end of period 7,165 80,907 82,178 7,543 143,637
AETNA MONEY MARKET VP
Value at beginning of period $12.524 $11.989 $11.475 $11.026 $10.528
Value at end of period $13.035 $12.524 $11.989 $11.475 $11.026
Number of accumulation units
outstanding at end of period 81,149 300,195 477,490 179,361 12,999,680
AETNA REAL ESTATE
SECURITIES VP
Value at beginning of period $8.891 $10.024(8)
Value at end of period $8.436 $8.891
Number of accumulation units
outstanding at end of period 107 1,415
AETNA SMALL COMPANY
VP
Value at beginning of period $13.704 $13.684 $13.248(4)
Value at end of period $17.762 $13.704 $13.684
Number of accumulation units
outstanding at end of period 9,745 49,514 4,993
AETNA VALUE
OPPORTUNITY VP
Value at beginning of period $16.113 $13.290 $13.093(4)
Value at end of period $19.085 $16.113 $13.290
Number of accumulation units
outstanding at end of period 4,285 32,612 4,910
AIM V.I. CAPITAL
APPRECIATION FUND
Value at beginning of period $9.660(11)
Value at end of period $13.745
Number of accumulation units
outstanding at end of period 42
AIM V.I. GROWTH FUND
Value at beginning of period $10.595(12)
Value at end of period $12.098
Number of accumulation units
outstanding at end of period 18
AIM V.I. GROWTH AND
INCOME FUND
Value at beginning of period $9.601(11)
Value at end of period $11.710
Number of accumulation units
outstanding at end of period 115
AIM V.I. VALUE FUND
Value at beginning of period $9.845(13)
Value at end of period $11.495
Number of accumulation units
outstanding at end of period 674
CALVERT SOCIAL
BALANCED PORTFOLIO
Value at beginning of period $20.612 $17.896 $15.046 $13.527 $10.554
Value at end of period $22.913 $20.612 $17.896 $15.046 $13.527
Number of accumulation units
outstanding at end of period 6,811 37,944 62,328 21,317 966,098
FIDELITY VIP EQUITY-
INCOME PORTFOLIO
Value at beginning of period $17.567 $15.887 $12.520 $11.092 $10.000(1)
Value at end of period $18.502 $17.567 $15.887 $12.520 $11.092
Number of accumulation units
outstanding at end of period 14,979 68,970 114,725 27,814 1,660,304
FIDELITY VIP GROWTH
PORTFOLIO
Value at beginning of period $19.273 $13.948 $11.404 $10.066 $10.000(1)
Value at end of period $26.237 $19.273 $13.948 $11.404 $10.066
Number of accumulation units
outstanding at end of period 43,826 176,188 191,151 60,491 1,833,794
<CAPTION>
1994 1993 1992 1991 1990
-------- ------- ------- ------- ----------
<S> <C> <C> <C> <C> <C>
AETNA INTERNATIONAL VP
Value at beginning of period
Value at end of period
Number of accumulation units
outstanding at end of period
AETNA LEGACY VP
Value at beginning of period
Value at end of period
Number of accumulation units
outstanding at end of period
AETNA MONEY MARKET VP
Value at beginning of period $10.241 $10.048 $33.812(10) $32.138 $30.012
Value at end of period $10.528 $10.241 $10.048 $33.812 $32.138
Number of accumulation units
outstanding at end of period 7,673,528 2,766,044 825 8,430,082 10,220,110
AETNA REAL ESTATE
SECURITIES VP
Value at beginning of period
Value at end of period
Number of accumulation units
outstanding at end of period
AETNA SMALL COMPANY
VP
Value at beginning of period
Value at end of period
Number of accumulation units
outstanding at end of period
AETNA VALUE
OPPORTUNITY VP
Value at beginning of period
Value at end of period
Number of accumulation units
outstanding at end of period
AIM V.I. CAPITAL
APPRECIATION FUND
Value at beginning of period
Value at end of period
Number of accumulation units
outstanding at end of period
AIM V.I. GROWTH FUND
Value at beginning of period
Value at end of period
Number of accumulation units
outstanding at end of period
AIM V.I. GROWTH AND
INCOME FUND
Value at beginning of period
Value at end of period
Number of accumulation units
outstanding at end of period
AIM V.I. VALUE FUND
Value at beginning of period
Value at end of period
Number of accumulation units
outstanding at end of period
CALVERT SOCIAL
BALANCED PORTFOLIO
Value at beginning of period $11.036 $10.278 $10.000(14)
Value at end of period $10.554 $11.036 $10.278
Number of accumulation units
outstanding at end of period 521,141 144,168 2,556
FIDELITY VIP EQUITY-
INCOME PORTFOLIO
Value at beginning of period
Value at end of period
Number of accumulation units
outstanding at end of period
FIDELITY VIP GROWTH
PORTFOLIO
Value at beginning of period
Value at end of period
Number of accumulation units
outstanding at end of period
</TABLE>
118
<PAGE>
Condensed Financial Information (continued)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
1999 1998 1997 1996 1995
-------- ------- ------- ------- ----------
<S> <C> <C> <C> <C> <C>
FIDELITY VIP OVERSEAS
PORTFOLIO
Value at beginning of period $13.746 $12.308 $11.138 $9.961 $10.000(1)
Value at end of period $19.420 $13.746 $12.308 $11.138 $9.961
Number of accumulation units
outstanding at end of period 3,845 17,178 19,949 2,023 196,090
FIDELITY VIP II
CONTRAFUND[Reg TM]
PORTFOLIO
Value at beginning of period $19.722 $15.318 $12.457 $10.397 $10.000(1)
Value at end of period $24.274 $19.722 $15.318 $12.457 $10.397
Number of accumulation units
outstanding at end of period $37,380 187,525 263,159 41,394 2,116,732
JANUS ASPEN AGGRESSIVE
GROWTH PORTFOLIO
Value at beginning of period $21.081 $15.851 $14.204 $13.322 $10.581
Value at end of period $47.068 $21.081 $15.851 $14.204 $13.322
Number of accumulation units
outstanding at end of period 79,376 212,741 294,623 122,154 4,887,060
JANUS ASPEN BALANCED
PORTFOLIO
Value at beginning of period $20.031 $15.059 $12.451 $10.850 $10.000(1)
Value at end of period $25.151 $20.031 $15.059 $12.451 $10.850
Number of accumulation units
outstanding at end of period 32,085 89,095 78,052 12,340 93,304
JANUS ASPEN FLEXIBLE
INCOME PORTFOLIO
Value at beginning of period $15.583 $14.418 $13.024 $12.077 $9.873
Value at end of period $15.683 $15.583 $14.418 $13.024 $12.077
Number of accumulation units
outstanding at end of period 6,316 20,317 13,587 3,861 315,361
JANUS ASPEN GROWTH
PORTFOLIO
Value at beginning of period $20.778 $15.463 $12.718 $10.870 $10.000(1)
Value at end of period $29.635 $20.778 $15.463 $12.718 $10.870
Number of accumulation units
outstanding at end of period 38,376 61,355 93,386 29,696 259,196
JANUS ASPEN
WORLDWIDE GROWTH
PORTFOLIO
Value at beginning of period $21.419 $16.773 $13.862 $10.877 $10.000(1)
Value at end of period $34.891 $21.419 $16.773 $13.862 $10.877
Number of accumulation units
outstanding at end of period 81,241 301,775 538,281 124,749 1,036,040
LEXINGTON NATURAL
RESOURCES TRUST
Value at beginning of period $12.412 $15.590 $14.688 $11.720 $10.154
Value at end of period $14.028 $12.412 $15.590 $14.688 $11.720
Number of accumulation units
outstanding at end of period 9,116 38,283 103,604 10,977 711,892
OPPENHEIMER GLOBAL
SECURITIES FUND/VA
Value at beginning of period $10.039 $10.042(8)
Value at end of period $15.760 $10.039
Number of accumulation units
outstanding at end of period 329 382
OPPENHEIMER STRATEGIC
BOND FUND/VA
Value at beginning of period $9.915 $9.992(8)
Value at end of period $10.099 $9.915
Number of accumulation units
outstanding at end of period 3,113 5,938
PPI MFS CAPITAL
OPPORTUNITIES
PORTFOLIO
Value at beginning of period $24.294 $19.352 $19.071(16)
Value at end of period $35.806 $24.294 $19.352
Number of accumulation units
outstanding at end of period 18,282 171,102 206,191
PPI MFS EMERGING
EQUITIES PORTFOLIO
Value at beginning of period $19.232 $14.974 $15.158(16)
Value at end of period $28.743 $19.232 $14.974
Number of accumulation units
outstanding at end of period 73,452 398,717 703,653
<CAPTION>
1994 1993 1992 1991 1990
-------- ------- ------- ------- ----------
<S> <C> <C> <C> <C> <C>
FIDELITY VIP OVERSEAS
PORTFOLIO
Value at beginning of period
Value at end of period
Number of accumulation units
outstanding at end of period
FIDELITY VIP II
CONTRAFUND[Reg TM]
PORTFOLIO
Value at beginning of period
Value at end of period
Number of accumulation units
outstanding at end of period
JANUS ASPEN AGGRESSIVE
GROWTH PORTFOLIO
Value at beginning of period $10.000(15)
Value at end of period $10.581
Number of accumulation units
outstanding at end of period 753,862
JANUS ASPEN BALANCED
PORTFOLIO
Value at beginning of period
Value at end of period
Number of accumulation units
outstanding at end of period
JANUS ASPEN FLEXIBLE
INCOME PORTFOLIO
Value at beginning of period $10.000(15)
Value at end of period $9.873
Number of accumulation units
outstanding at end of period 28,543
JANUS ASPEN GROWTH
PORTFOLIO
Value at beginning of period
Value at end of period
Number of accumulation units
outstanding at end of period
JANUS ASPEN
WORLDWIDE GROWTH
PORTFOLIO
Value at beginning of period
Value at end of period
Number of accumulation units
outstanding at end of period
LEXINGTON NATURAL
RESOURCES TRUST
Value at beginning of period $10.877 $9.832 $10.000(14)
Value at end of period $10.154 $10.877 $9.832
Number of accumulation units
outstanding at end of period 703,676 135,614 561
OPPENHEIMER GLOBAL
SECURITIES FUND/VA
Value at beginning of period
Value at end of period
Number of accumulation units
outstanding at end of period
OPPENHEIMER STRATEGIC
BOND FUND/VA
Value at beginning of period
Value at end of period
Number of accumulation units
outstanding at end of period
PPI MFS CAPITAL
OPPORTUNITIES
PORTFOLIO
Value at beginning of period
Value at end of period
Number of accumulation units
outstanding at end of period
PPI MFS EMERGING
EQUITIES PORTFOLIO
Value at beginning of period
Value at end of period
Number of accumulation units
outstanding at end of period
</TABLE>
119
<PAGE>
Condensed Financial Information (continued)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
1999 1998 1997 1996 1995 1994 1993 1992 1991 1990
------- -------- ------- ------ ------ ------ ------ ------ ------ -----
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
PPI MFS RESEARCH
GROWTH PORTFOLIO
Value at beginning of period $16.861 $13.839 $14.108(16)
Value at end of period $20.716 $16.861 $13.839
Number of accumulation units
outstanding at end of period 66,415 431,603 627,658
PPI MFS SCUDDER
INTERNATIONAL GROWTH
PORTFOLIO
Value at beginning of period $20.102 $17.040 $16.825(16)
Value at end of period $31.542 $20.102 $17.040
Number of accumulation units
outstanding at end of period 35,480 353,311 457,354
PPI T. ROWE PRICE
GROWTH EQUITY
PORTFOLIO
Value at beginning of period $18.258 $14.445 $14.153(16)
Value at end of period $22.123 $18.258 $14.445
Number of accumulation units
outstanding at end of period 19,172 109,123 200,374
</TABLE>
- -----------------
(1) The initial accumulation unit value was established at $10.000 during
August 1995, when the fund became available under the contract.
(2) The accumulation unit value was converted to $10.000 on August 21, 1992
upon the commencement of a new administrative system. Immediately prior to
that date, the accumulation unit value of the fund was $13.118. On the date
of conversion, additional units were issued so that account values were not
changed as a result of the conversion.
(3) The accumulation unit value was established at $10.000 on August 21, 1992
upon the commencement of a new administrative system. Immediately prior to
that date, the accumulation unit value of the fund was $38.521. On the date
of conversion, additional units were issued so that account values were not
changed as a result of the conversion.
(4) Funds were first received in this option during December 1997.
(5) The accumulation unit value was converted to $10.000 on August 21, 1992
upon the commencement of a new administrative system. Immediately prior to
that date, the accumulation unit value of the fund was $97.817. On the date
of conversion, additional units were issued so that account values were not
changed as a result of the conversion.
(6) Funds were first received in this option during July 1998.
(7) The initial accumulation unit value was established during December 1996
when the portfolio became available under the contract, when the funds were
first received in this option or when the applicable daily asset charge was
first utilized.
(8) Funds were first received in this option during May 1998.
(9) Funds were first received in this option during August 1998.
(10) The accumulation unit value was converted to $10.000 on August 21, 1992
upon the commencement of a new administrative system. Immediately prior to
that date, the accumulation unit value of the fund was $34.397. On the date
of conversion, additional units were issued so that account values were not
changed as a result of the conversion.
(11) Funds were first received in this option during June 1999.
(12) Funds were first received in this option during November 1999.
(13) Funds were first received in this option during August 1999.
(14) The initial accumulation unit value was established at $10.000 on August
21, 1992, the date on which the fund/portfolio became available under the
contract.
(15) The initial accumulation unit value was established at $10.000 during
October 1994, when the funds ere first received in this option.
(16) Funds were first received in this option during November 1997.
120
<PAGE>
Condensed Financial Information
- --------------------------------------------------------------------------------
TABLE XVIII
FOR CONTRACTS ISSUED TO MISSOURI MUNICIPAL LEAGUE UNDER DEFERRED
COMPENSATION PLANS WITH TOTAL SEPARATE ACCOUNT CHARGES OF 0.80%
(Selected data for accumulation units outstanding throughout each period)
================================================================================
The condensed financial information presented below for the period ended
December 31, 1999, is derived from the financial statements of the separate
account, which have been audited by KPMG LLP, independent auditors. The
financial statements and the independent auditors' report thereon for the year
ended December 31, 1999 are included in the Statement of Additional
Information.
<TABLE>
<CAPTION>
1999
-------
<S> <C>
AETNA ASCENT VP
Value at beginning of period $16.800(1)
Value at end of period $18.122
Number of accumulation units outstanding at end of period 14,127
AETNA BALANCED VP, INC.
Value at beginning of period $22.705(1)
Value at end of period $24.619
Number of accumulation units outstanding at end of period 246,195
AETNA BOND VP
Value at beginning of period $14.118(1)
Value at end of period $13.999
Number of accumulation units outstanding at end of period 23,788
AETNA CROSSROADS VP
Value at beginning of period $15.738(1)
Value at end of period $16.624
Number of accumulation units outstanding at end of period 12,284
AETNA GROWTH VP
Value at beginning of period $19.053(1)
Value at end of period $24.094
Number of accumulation units outstanding at end of period 61,303
AETNA GROWTH AND INCOME VP
Value at beginning of period $26.736(1)
Value at end of period $29.394
Number of accumulation units outstanding at end of period 948,654
AETNA HIGH YIELD VP
Value at beginning of period $9.492(2)
Value at end of period $9.798
Number of accumulation units outstanding at end of period 61
AETNA INDEX PLUS LARGE CAP VP
Value at beginning of period $20.242(1)
Value at end of period $23.277
Number of accumulation units outstanding at end of period 309,655
AETNA INDEX PLUS MID CAP VP
Value at beginning of period $10.927(1)
Value at end of period $12.530
Number of accumulation units outstanding at end of period 2,027
AETNA INDEX PLUS SMALL CAP VP
Value at beginning of period $8.783(1)
Value at end of period $9.703
Number of accumulation units outstanding at end of period 5,600
AETNA INTERNATIONAL VP
Value at beginning of period $10.489(1)
Value at end of period $14.681
Number of accumulation units outstanding at end of period 1,250
AETNA LEGACY VP
Value at beginning of period $14.711(1)
Value at end of period $15.222
Number of accumulation units outstanding at end of period 42,489
AETNA MONEY MARKET VP
Value at beginning of period $12.707(1)
Value at end of period $13.047
Number of accumulation units outstanding at end of period 139,150
AETNA REAL ESTATE SECURITIES VP
Value at beginning of period $9.523(1)
Value at end of period $8.443
Number of accumulation units outstanding at end of period 608
AETNA SMALL COMPANY VP
Value at beginning of period $14.508(1)
Value at end of period $17.778
Number of accumulation units outstanding at end of period 29,452
AETNA VALUE OPPORTUNITY VP
Value at beginning of period $17.291(1)
Value at end of period $19.103
Number of accumulation units outstanding at end of period 11,792
</TABLE>
121
<PAGE>
Condensed Financial Information (continued)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
1999
-------
<S> <C>
AIM V.I. GROWTH FUND
Value at beginning of period $11.240(3)
Value at end of period $12.110
Number of accumulation units outstanding at end of period 2,843
AIM V.I. GROWTH AND INCOME FUND
Value at beginning of period $9.727(4)
Value at end of period $11.721
Number of accumulation units outstanding at end of period 1,867
CALVERT SOCIAL BALANCED PORTFOLIO
Value at beginning of period $21.036(1)
Value at end of period $22.935
Number of accumulation units outstanding at end of period 2,376
FIDELITY VIP EQUITY-INCOME PORTFOLIO
Value at beginning of period $19.392(1)
Value at end of period $18.519
Number of accumulation units outstanding at end of period 25,382
FIDELITY VIP GROWTH PORTFOLIO
Value at beginning of period $21.072(1)
Value at end of period $26.262
Number of accumulation units outstanding at end of period 82,069
FIDELITY VIP OVERSEAS PORTFOLIO
Value at beginning of period $14.422(1)
Value at end of period $19.438
Number of accumulation units outstanding at end of period 7,321
FIDELITY VIP II CONTRAFUND[Reg TM] PORTFOLIO
Value at beginning of period $21.258(1)
Value at end of period $24.296
Number of accumulation units outstanding at end of period 82,920
JANUS ASPEN AGGRESSIVE GROWTH PORTFOLIO
Value at beginning of period $27.003(1)
Value at end of period $47.112
Number of accumulation units outstanding at end of period 214,523
JANUS ASPEN BALANCED PORTFOLIO
Value at beginning of period $22.140(1)
Value at end of period $25.174
Number of accumulation units outstanding at end of period 80,071
JANUS ASPEN FLEXIBLE INCOME PORTFOLIO
Value at beginning of period $15.603(1)
Value at end of period $15.698
Number of accumulation units outstanding at end of period 9,552
JANUS ASPEN GROWTH PORTFOLIO
Value at beginning of period $23.156(1)
Value at end of period $29.662
Number of accumulation units outstanding at end of period 63,406
JANUS ASPEN WORLDWIDE GROWTH PORTFOLIO
Value at beginning of period $23.168(1)
Value at end of period $34.923
Number of accumulation units outstanding at end of period 216,743
LEXINGTON NATURAL RESOURCES TRUST
Value at beginning of period $14.452(1)
Value at end of period $14.041
Number of accumulation units outstanding at end of period 4,390
OPPENHEIMER GLOBAL SECURITIES FUND/VA
Value at beginning of period $10.913(1)
Value at end of period $15.775
Number of accumulation units outstanding at end of period 14,641
OPPENHEIMER STRATEGIC BOND FUND/VA
Value at beginning of period $9.954(1)
Value at end of period $10.108
Number of accumulation units outstanding at end of period 3,895
PPI MFS CAPITAL OPPORTUNITIES PORTFOLIO
Value at beginning of period $27.595(1)
Value at end of period $35.839
Number of accumulation units outstanding at end of period 23,458
PPI MFS EMERGING EQUITIES PORTFOLIO
Value at beginning of period $20.019(1)
Value at end of period $28.769
Number of accumulation units outstanding at end of period 194,333
PPI MFS RESEARCH GROWTH PORTFOLIO
Value at beginning of period $17.376(1)
Value at end of period $20.735
Number of accumulation units outstanding at end of period 86,899
PPI SCUDDER INTERNATIONAL GROWTH PORTFOLIO
Value at beginning of period $21.199(1)
Value at end of period $31.571
Number of accumulation units outstanding at end of period 79,515
</TABLE>
122
<PAGE>
Condensed Financial Information (continued)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
1999
--------
<S> <C>
PPI T. ROWE PRICE GROWTH EQUITY PORTFOLIO
Value at beginning of period $19.112(1)
Value at end of period $22.144
Number of accumulation units outstanding at end of period 53,724
</TABLE>
- -----------------
(1) Funds were first received in this option during May 1999.
(2) Funds were first received in this option during August 1999.
(3) Funds were first received in this option during December 1999.
(4) Funds were first received in this option during October 1999.
123
<PAGE>
Condensed Financial Information
- --------------------------------------------------------------------------------
TABLE XIX
FOR CONTRACTS ISSUED TO METROPOLITAN UTILITIES DISTRICT UNDER DEFERRED
COMPENSATION PLANS WITH TOTAL SEPARATE ACCOUNT CHARGES OF 0.80%
(Selected data for accumulation units outstanding throughout each period)
================================================================================
The condensed financial information presented below for the period ended
December 31, 1999, is derived from the financial statements of the separate
account, which have been audited by KPMG LLP, independent auditors. The
financial statements and the independent auditors' report thereon for the year
ended December 31, 1999 are included in the Statement of Additional
Information.
<TABLE>
<CAPTION>
1999
--------
<S> <C>
AETNA ASCENT VP
Value at beginning of period $16.828(1)
Value at end of period $18.152
Number of accumulation units outstanding at end of period 9,510
AETNA BALANCED VP, INC.
Value at beginning of period $22.742(1)
Value at end of period $24.660
Number of accumulation units outstanding at end of period 89,985
AETNA BOND VP
Value at beginning of period $14.142(1)
Value at end of period $14.022
Number of accumulation units outstanding at end of period 74,784
AETNA CROSSROADS VP
Value at beginning of period $15.764(1)
Value at end of period $16.652
Number of accumulation units outstanding at end of period 12,822
AETNA GROWTH VP
Value at beginning of period $19.053(1)
Value at end of period $24.094
Number of accumulation units outstanding at end of period 72,901
AETNA GROWTH AND INCOME VP
Value at beginning of period $26.781(1)
Value at end of period $29.443
Number of accumulation units outstanding at end of period 1,234,587
AETNA HIGH YIELD VP
Value at beginning of period $9.716(1)
Value at end of period $9.798
Number of accumulation units outstanding at end of period 3,126
AETNA INDEX PLUS LARGE CAP VP
Value at beginning of period $20.257(1)
Value at end of period $23.294
Number of accumulation units outstanding at end of period 120,481
AETNA INDEX PLUS MID CAP VP
Value at beginning of period $10.927(1)
Value at end of period $12.530
Number of accumulation units outstanding at end of period 6,386
AETNA INDEX PLUS SMALL CAP VP
Value at beginning of period $8.783(1)
Value at end of period $9.703
Number of accumulation units outstanding at end of period 5,603
AETNA INTERNATIONAL VP
Value at beginning of period $10.489(1)
Value at end of period $14.681
Number of accumulation units outstanding at end of period 19,174
AETNA LEGACY VP
Value at beginning of period $14.736(1)
Value at end of period $15.248
Number of accumulation units outstanding at end of period 8,034
AETNA MONEY MARKET VP
Value at beginning of period $12.728(1)
Value at end of period $13.069
Number of accumulation units outstanding at end of period 124,835
AETNA REAL ESTATE SECURITIES VP
Value at beginning of period $9.523(1)
Value at end of period $8.443
Number of accumulation units outstanding at end of period 3,605
AETNA SMALL COMPANY VP
Value at beginning of period $14.508(1)
Value at end of period $17.778
Number of accumulation units outstanding at end of period 37,985
AETNA VALUE OPPORTUNITY VP
Value at beginning of period $17.291(1)
Value at end of period $19.103
Number of accumulation units outstanding at end of period 19,132
</TABLE>
124
<PAGE>
Condensed Financial Information (continued)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
1999
-------
<S> <C>
CALVERT SOCIAL BALANCED PORTFOLIO
Value at beginning of period $21.071(1)
Value at end of period $22.973
Number of accumulation units outstanding at end of period 3,697
FIDELITY VIP EQUITY-INCOME PORTFOLIO
Value at beginning of period $19.424(1)
Value at end of period $18.550
Number of accumulation units outstanding at end of period 37,177
FIDELITY VIP GROWTH PORTFOLIO
Value at beginning of period $21.107(1)
Value at end of period $26.305
Number of accumulation units outstanding at end of period 73,156
FIDELITY VIP OVERSEAS PORTFOLIO
Value at beginning of period $14.446(1)
Value at end of period $19.470
Number of accumulation units outstanding at end of period 11,298
FIDELITY VIP II CONTRAFUND[Reg TM] PORTFOLIO
Value at beginning of period $21.293(1)
Value at end of period $24.336
Number of accumulation units outstanding at end of period 111,857
JANUS ASPEN AGGRESSIVE GROWTH PORTFOLIO
Value at beginning of period $27.048(1)
Value at end of period $47.190
Number of accumulation units outstanding at end of period 130,374
JANUS ASPEN BALANCED PORTFOLIO
Value at beginning of period $22.177(1)
Value at end of period $25.216
Number of accumulation units outstanding at end of period 42,380
JANUS ASPEN FLEXIBLE INCOME PORTFOLIO
Value at beginning of period $15.629(1)
Value at end of period $15.724
Number of accumulation units outstanding at end of period 8,959
JANUS ASPEN GROWTH PORTFOLIO
Value at beginning of period $23.195(1)
Value at end of period $29.712
Number of accumulation units outstanding at end of period 45,184
JANUS ASPEN WORLDWIDE GROWTH PORTFOLIO
Value at beginning of period $23.206(1)
Value at end of period $34.982
Number of accumulation units outstanding at end of period 158,965
LEXINGTON NATURAL RESOURCES TRUST
Value at beginning of period $14.476(1)
Value at end of period $14.064
Number of accumulation units outstanding at end of period 4,217
OPPENHEIMER GLOBAL SECURITIES FUND/VA
Value at beginning of period $10.913(1)
Value at end of period $15.775
Number of accumulation units outstanding at end of period 2,690
OPPENHEIMER STRATEGIC BOND FUND/VA
Value at beginning of period $9.954(1)
Value at end of period $10.108
Number of accumulation units outstanding at end of period 483
PPI MFS CAPITAL OPPORTUNITIES PORTFOLIO
Value at beginning of period $27.641(1)
Value at end of period $35.899
Number of accumulation units outstanding at end of period 29,139
PPI MFS EMERGING EQUITIES PORTFOLIO
Value at beginning of period $20.053(1)
Value at end of period $28.817
Number of accumulation units outstanding at end of period 197,164
PPI MFS RESEARCH GROWTH PORTFOLIO
Value at beginning of period $17.405(1)
Value at end of period $20.770
Number of accumulation units outstanding at end of period 94,525
PPI SCUDDER INTERNATIONAL GROWTH PORTFOLIO
Value at beginning of period $21.234(1)
Value at end of period $31.624
Number of accumulation units outstanding at end of period 46,782
PPI T. ROWE PRICE GROWTH EQUITY PORTFOLIO
Value at beginning of period $19.144(1)
Value at end of period $22.181
Number of accumulation units outstanding at end of period 51,974
</TABLE>
- -----------------
(1) Funds were first received in this option during May 1999.
125
<PAGE>
For Master Applications Only
- --------------------------------------------------------------------------------
I hereby acknowledge receipt of an Account C prospectus dated May 1, 2000, as
well as all current prospectuses for the funds available under the Contracts.
- --- Please send an Account C Statement of Additional Information (Form No.
SAI.01107-00) dated May 1, 2000.
- --------------------------------------------------------------------------------
CONTRACT HOLDER'S SIGNATURE
- --------------------------------------------------------------------------------
DATE
PRO.OEA-00
