SUPPLEMENT TO THE
RETIREMENT GOVERNMENT MONEY MARKET PORTFOLIO
RETIREMENT MONEY MARKET PORTFOLIO
OCTOBER 20, 1998
STATEMENT OF ADDITIONAL INFORMATION
THE FOLLOWING FUNDAMENTAL LIMITATION REPLACES LIMITATION (2) FOUND
IN THE "INVESTMENT POLICIES AND LIMITATIONS" SECTION OF RETIREMENT
GOVERNMENT MONEY MARKET PORTFOLIO ON PAGE 2.
(2) issue senior securities, except in connection with the
insurance program established by the fund pursuant to an exemptive
order issued by the Securities and Exchange Commission or as otherwise
permitted under the Investment Company Act of 1940;
THE FOLLOWING FUNDAMENTAL LIMITATION REPLACES LIMITATION (2) FOUND
IN THE "INVESTMENT POLICIES AND LIMITATIONS" SECTION OF RETIREMENT
MONEY MARKET PORTFOLIO ON PAGE 3.
(2) issue senior securities, except in connection with the
insurance program established by the fund pursuant to an exemptive
order issued by the Securities and Exchange Commission or as otherwise
permitted under the Investment Company Act of 1940;
THE FOLLOWING INFORMATION SUPPLEMENTS THE INFORMATION FOUND IN THE
"INVESTMENT POLICES AND LIMITATIONS" SECTION BEGINNING ON PAGE 2.
MONEY MARKET INSURANCE. Each fund participates in a mutual
insurance company solely with other funds advised by FMR or its
affiliates. This company provides insurance coverage losses on certain
money market instruments held by a participating fund (eligible
instruments), including losses from nonpayment of principal or
interest or a bankruptcy or insolvency of the issuer or credit support
provider, if any. The insurance does not cover losses resulting from
changes in interest rates or other market developments. Each fund is
charged an annual premium for the insurance coverage and may be
subject to a special assessment of up to approximately two and
one-half times the fund's annual gross premium if covered losses
exceed certain levels. A participating fund may recover no more than
$100 million annually, including all other claims of insured funds,
and may only recover if the amount of the loss exceeds 0.30% of its
eligible instruments. Each fund may incur losses regardless of the
insurance.
