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VIP EXTRA CREDIT VARIABLE ANNUITY
PROVIDENTMUTUAL LIFE AND ANNUITY COMPANY OF AMERICA
PROVIDENTMUTUAL VARIABLE ANNUITY SEPARATE ACCOUNT
SUPPLEMENT DATED JULY 24, 2000
TO THE PROSPECTUS DATED MAY 1, 2000
This supplement describes changes to the fees and expenses of one fund available
under this variable annuity contract. This supplement should be retained with
the prospectus for future reference.
The following information replaces the expenses and examples shown for the
Strong Opportunity Fund II on pages 4-8 of the prospectus.
TABLE OF EXPENSES
<TABLE>
<CAPTION>
--------------------------------------------------------------------------------
<S> <C>
STRONG OPPORTUNITY FUND II, INC. OPPORTUNITY FUND II PORTFOLIO
("STRONG OPPORTUNITY FUND")
ANNUAL EXPENSES (6)
(as a percentage of average net assets)
--------------------------------------------------------------------------------
Management Fees 1.00%
(Investment Advisory Fees)
Other Expenses (8)
(after reimbursement) 0.10%
Total Fund Annual Expenses
(after reimbursement) 1.10%
--------------------------------------------------------------------------------
</TABLE>
(6) The fee and expense information regarding the Funds was provided by the
Funds and has not been independently verified by PLACA. Market Street
Fund is affiliated with PLACA. None of the other Funds is affiliated
with PLACA.
(8) Strong has voluntarily agreed to waive the management fee and/or absorb
the fund's other expenses so that the total annual fund operating
expenses are capped at 1.10%. Strong has no current intention to, but
may in the future, discontinue or modify any fee waivers or expense
absorptions after any appropriate notice to the fund's shareholders.
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EXAMPLES
You would pay the following expenses on a $1,000 investment, assuming a 5%
annual return on assets, assuming that no optional death benefit rider was
selected, and assuming the addition of a 3% Credit Amount added to the $1,000
investment for the purpose of determining asset-based expenses. These examples
do not show the offsetting effect of the Credit Amount on illustrated expenses.
The Credit Amount has the effect of offsetting some of the expenses reflected in
the illustrations.
1. If you surrender or annuitize your Contract at the end of the applicable time
period:
<TABLE>
<CAPTION>
--------------------------------------------------------------------------------
SUBACCOUNT 1 YEAR 3 YEARS 5 YEARS 10 YEARS
--------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
STRONG OPPORTUNITY FUND II $103.16 $162.12 $220.48 $298.65
--------------------------------------------------------------------------------
</TABLE>
2. If you do not surrender or annuitize your Contract at the end of the
applicable time period:
<TABLE>
<CAPTION>
--------------------------------------------------------------------------------
SUBACCOUNT 1 YEAR 3 YEARS 5 YEARS 10 YEARS
--------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
STRONG OPPORTUNITY FUND II $ 26.78 $ 82.28 $140.48 $298.65
--------------------------------------------------------------------------------
</TABLE>
You would pay the following expenses on a $1,000 investment, assuming a 5%
annual return on assets, assuming that the rising floor optional death benefit
rider was selected, and assuming the addition of a 3% Credit Amount added to the
$1,000 investment for the purpose of determining asset-based expenses:
3. If you surrender or annuitize your Contract at the end of the
applicable time period:
<TABLE>
<CAPTION>
--------------------------------------------------------------------------------
SUBACCOUNT 1 YEAR 3 YEARS 5 YEARS 10 YEARS
--------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
STRONG OPPORTUNITY FUND II $106.95 $173.44 $240.80 $338.35
--------------------------------------------------------------------------------
</TABLE>
The above Examples assume no transfer charges or premium taxes have been
assessed. The Examples also assume that the Annual Administrative Fee is $40 and
that the estimated average Contract Account Value per Contract is $40,000, which
translates the Annual Administrative Fee into an assumed 0.10% charge for
purposes of the Examples based on a $1,000 investment.
<PAGE> 3
THE EXAMPLES SHOULD NOT BE CONSIDERED A REPRESENTATION OF PAST OR FUTURE
EXPENSES. ACTUAL EXPENSES MAY BE GREATER OR LESS THAN THOSE SHOWN. THE ASSUMED
5% ANNUAL RETURN IS HYPOTHETICAL AND SHOULD NOT BE CONSIDERED A REPRESENTATION
OF PAST OR FUTURE ANNUAL RETURNS, WHICH MAY BE MORE OR LESS THAN THE ASSUMED
AMOUNT.
