OPPENHEIMER U.S. GOVERNMENT TRUST
Supplement Dated October 18, 1996
To the Prospectus dated November 1, 1995
The Prospectus is amended as follows:
1. The parenthetical in footnote 1 following the table in the
section captioned "Shareholder Transaction Expenses" on page 4 is revised
to read as follows: "($500,000 or more for purchases by "Retirement
Plans," as defined in "Class A Contingent Deferred Sales Charge" on page
25)."
2. The first and second sentences in the sub-section captioned
"Class A Shares" in "How to Buy Shares-Classes of Shares" on page 25 are
revised to read as follows:
If you buy Class A shares, you may pay an initial sales charge on
investments up to $1 million (up to $500,000 for purchases by
"Retirement Plans," as defined in "Class A Contingent Deferred Sales
Charge" on page 25). If you purchase Class A shares as part of an
investment of at least $1 million ($500,000 for Retirement Plans) in
shares of one or more Oppenheimer funds, you will not pay an initial
sales charge, but if you sell any of those shares within 18 months
of buying them, you may pay a contingent deferred sales charge.
3. The first and second paragraphs in the section captioned "Class
A Contingent Deferred Sales Charge" on page 25 are revised to read as
follows:
There is no initial sales charge on purchases of Class A shares of
any one or more of the Oppenheimer funds in the following cases:
- Purchases aggregating $1 million or more.
- Purchases by a retirement plan qualified under sections 401(a) or
401(k) of the Internal Revenue Code, by a non-qualified deferred
compensation plan (not including Section 457 plans), employee benefit
plan, group retirement plan (see "How to Buy Shares - Retirement
Plans" in the Statement of Additional Information for further
details), an employee's 403(b)(7) custodial plan account, SEP IRA,
SARSEP, or SIMPLE plan (all of these plans are collectively referred
to as "Retirement Plans"); that: (1) buys shares costing $500,000 or
more or (2) has, at the time of purchase, 100 or more eligible
participants, or (3) certifies that it projects to have annual plan
purchases of $200,000 or more.
- Purchases by an OppenheimerFunds Rollover IRA if the purchases are
made (1) through a broker, dealer, bank or registered investment
adviser that has made special arrangements with the Distributor for
these purchases, or (2) by a direct rollover of a distribution from
a qualified retirement plan if the administrator of that plan has
made special arrangements with the Distributor for those purchases.
The Distributor pays dealers of record commissions on those purchases
in an amount equal to (i) 1.0% for non-Retirement Plan accounts, and
(ii) for Retirement Plan accounts, 1.0% of the first $2.5 million,
plus 0.50% of the next $2.5 million, plus 0.25% of purchases over $5
million. That commission will be paid only on those purchases that
were not previously subject to a front-end sales charge and dealer
commission. No sales commission will be paid to the dealer, broker
or financial institution on sales of Class A shares purchased with
the redemption proceeds of shares of a mutual fund offered as an
investment option in a Retirement Plan in which Oppenheimer funds are
also offered as investment options under a special arrangement with
the Distributor if the purchase occurs more than 30 days after the
addition of the Oppenheimer funds as an investment option to the
Retirement Plan.
4. Effective January 1, 1997, the second sentence in the section
captioned "Special Arrangements with Dealers" on page 26 is deleted.
5. The seventh subparagraph under the section captioned "Waivers
of Class A Sales Charges - Waivers of Initial and Contingent Deferred
Sales Charges for Certain Purchasers" on page 27 is deleted and replaced
with the following subparagraph:
- (1) investment advisors and financial planners who charge
an advisory, consulting or other fee for their services and buy
shares for their own accounts or the accounts of their clients,
(2) Retirement Plans and deferred compensation plans and trusts
used to fund those Plans (including, for example, plans
qualified or created under sections 401(a), 403(b) or 457 of the
Internal Revenue Code), and "rabbi trusts" that buy shares for
their own accounts, in each case if those purchases are made
through a broker or agent or other financial intermediary that
has made special arrangements with the Distributor for those
purchases; and (3) clients of such investment advisors or
financial planners who buy shares for their own accounts may
also purchase shares without sales charge but only if their
accounts are linked to a master account of their investment
advisor or financial planner on the books and records of the
broker, agent or financial intermediary with which the
Distributor has made such special arrangements (each of these
investors may be charged a fee by the broker, agent or financial
intermediary for purchasing shares).
6. The section captioned "Waivers of Class A Sales Charges -
Waivers of the Class A Contingent Deferred Sales Charge for Certain
Redemptions" on page 28 is revised to read as follows:
The Class A contingent deferred sales charge is also waived if shares
that would otherwise be subject to the contingent deferred sales
charge are redeemed in the following cases:
- to make Automatic Withdrawal Plan payments that are
limited annually to no more than 12% of the original
account value;
- involuntary redemptions of shares by operation of law or
involuntary redemptions of small accounts (see
"Shareholder Account Rules and Policies," below);
- if, at the time a purchase order is placed for Class A
shares that would otherwise be subject to the Class A
contingent deferred sales charge, the dealer agrees in
writing to accept the dealer's portion of the commission
payable on the sale in installments of 1/18th of the
commission per month ( and no further commission will be
payable if the shares are redeemed within 18 months of
purchase);
- for distributions from a TRAC-2000 401(k) plan sponsored
by the Distributor due to the termination of the TRAC-2000
program.
- for distributions from Retirement Plans, deferred
compensation plans or other employee benefit plans for any
of the following purposes: (1) following the death or
disability (as defined in the Internal Revenue Code) of
the participant or beneficiary (the death or disability
must occur after the participant's account was
established); (2) to return excess contributions; (3) to
return contributions made due to a mistake of fact; (4)
hardship withdrawals, as defined in the plan; (5) under a
Qualified Domestic Relations Order, as defined in the
Internal Revenue Code; (6) to meet the minimum
distribution requirements of the Internal Revenue Code;
(7) to establish "substantially equal periodic payments"
as described in Section 72(t) of the Internal Revenue
Code; (8) for retirement distributions or loans to
participants or beneficiaries; (9) separation from
service; (10) participant-directed redemptions to purchase
shares of a mutual fund (other than a fund managed by the
Manager or its subsidiary) offered as an investment option
in a Retirement Plan in which Oppenheimer funds are also
offered as investment options under a special arrangement
with the Distributor; or (11) plan termination or "in-
service distributions", if the redemption proceeds are
rolled over directly to an OppenheimerFunds IRA.
October 18, 1996 PS0220.007
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OPPENHEIMER U.S. GOVERNMENT TRUST
Supplement dated October 18, 1996
to the Statement of Additional Information dated November 1, 1995
The Statement of Additional Information is amended as follows:
1. The section captioned "How To Buy Shares" on page 25 is revised
by adding the following to the end of that section:
Retirement Plans. In describing certain types of employee benefit
plans that may purchase Class A shares without being subject to the Class
A contingent differed sales charge, the term "employee benefit plan" means
any plan or arrangement, whether or not "qualified" under the Internal
Revenue Code, including, medical savings accounts, payroll deduction plans
or similar plans in which Class A shares are purchased by a fiduciary or
other person for the account of participants who are employees of a single
employer or of affiliated employers, if the Fund account is registered in
the name of the fiduciary or other person for the benefit of participants
in the plan.
The term "group retirement plan" means any qualified or non-qualified
retirement plan (including 457 plans, SEPs, SARSEPs, 403(b) plans, and
SIMPLE plans) for employees of a corporation or a sole proprietorship,
members and employees of a partnership or association or other organized
group of persons (the members of which may include other groups), if the
group has made special arrangements with the Distributor and all members
of the group participating in the plan purchase Class A shares of the Fund
through a single investment dealer, broker or other financial institution
designated by the group.
October 18, 1996 PX0220.004
