THE PAINEWEBBER ADVANTAGE(sm)
issued by
AMERICAN BENEFIT VARIABLE ANNUITY ACCOUNT
Individual Deferred Variable Annuity Contract
Supplement Dated January 26, 1996 to Prospectus Dated May 1, 1995
Changes in the Portfolios of PaineWebber Series Trust
Supplements dated November 1, 1995 and August 1, 1995 to the
prospectus dated May 1, 1995 described certain changes that were
made and certain changes proposed to be made in the operations of
three Portfolios of the PaineWebber Series Trust ("Trust")
(Strategic Fixed Income Portfolio, Growth and Income Portfolio
and Asset Allocation Portfolio) in which net premiums under the
PaineWebber Advantage are invested. The shares of the seven
Trust Portfolios are held by the corresponding Divisions of the
American Benefit Variable Annuity Account ("Variable Annuity
Account") pursuant to allocation instructions of Owners of the
PaineWebber Advantage contract. A summary of the current status
of the latest changes is set forth below. For more complete
information regarding the changes, see the prospectus of the
PaineWebber Series Trust dated November 1, 1995 which accompanies
this prospectus.
The Asset Allocation Division is now the Balanced Division
Since August 14, 1995, the Asset Allocation Portfolio of the
Trust has been operated as a "balanced fund", in that it invests
in a combination of equity securities, investment grade debt
obligations and money market instruments.
On December 28, 1995, another insurer using the Trust as the
investment medium for its variable annuities obtained an Order
from the Securities and Exchange Commission ("S.E.C.") permitting
it to substitute shares of the Asset Allocation Portfolio for
shares of the Trust's Balanced Portfolio which was not included
as an investment medium for the PaineWebber Advantagee and
which, in addition, is no longer available to any insurer. On
January 26, 1996, the substitution of shares of the Asset
Allocation Portfolio for shares of the Balanced Portfolio
was effected pursuant to the above-described S.E.C. Order.
Monies formerly allocated to the Balanced Portfolio were
transferred into the Asset Allocation Portfolio. Also, at that
time, the names of both the Asset Allocation Portfolio and
Variable Annuity Account Division were changed to "Balanced
Portfolio" and "Balanced Division", respectively, to reflect the
new Balanced Portfolio's investment policies.
