As filed with the Securities and Exchange Commission on March 1, 1999
Registration No. 33-83928
--------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM N-4
REGISTRATION STATEMENT UNDER THE SECURITIES ACT OF 1933 (X)
PRE-EFFECTIVE AMENDMENT NO. _____ ( )
POST-EFFECTIVE AMENDMENT NO. 6 (X)
and/or
REGISTRATION STATEMENT UNDER THE INVESTMENT
COMPANY ACT OF 1940
Amendment No. 6 (X)
(Check appropriate box or boxes)
--------------------------------------------------
RETIREMENT PLAN SERIES ACCOUNT
(Exact name of Registrant)
GREAT-WEST LIFE & ANNUITY INSURANCE COMPANY
(Name of Depositor)
8515 East Orchard Road
Englewood, Colorado 80111
(Address of Depositor's Principal Executive Officers) (Zip Code)
Depositor's Telephone Number, including Area Code:
(800) 537-2033
William T. McCallum
Great-West Life & Annuity Insurance Company
President and Chief Executive Officer
8515 East Orchard Road
Englewood, Colorado 80111
(Name and Address of Agent for Service)
Copy to:
James F. Jorden, Esq.
Jorden Burt Boros Cicchetti Berenson & Johnson, LLP
1025 Thomas Jefferson Street, N.W., Suite 400 East
Washington, D.C. 20007-0805
It is proposed that this filing will become effective (check appropriate
space):
_____ Immediately upon filing pursuant to paragraph (b) of Rule 485.
_____ On ____________, pursuant to paragraph (b) of Rule 485.
X 60 days after filing pursuant to paragraph (a)(1) of Rule 485.
_____ On ____________, pursuant to paragraph (a)(1) of Rule 485.
_____ 75 days after filing pursuant to paragraph (a)(2) of Rule 485.
<PAGE>
_____ On ____________, pursuant to paragraph (a)(2) of Rule 485.
If appropriate, check the following:
_____ This post-effective amendment designates a new effective date for
a previously filed post-effective amendment.
<PAGE>
RETIREMENT PLAN SERIES ACCOUNT
Cross Reference Sheet
Showing Location in Prospectus
and Statement of Additional Information
As Required by Form N-4
<TABLE>
<S> <C>
FORM N-4 ITEM PROSPECTUS CAPTION
1. Cover Page...............................................Cover Page
2 Definitions..............................................Definitions
3. Synopsis.................................................Overview; Fee Table; Key
Features
4. Condensed Financial Information..........................Appendix A
5. General Description of
Registrant, Depositor and
Portfolio Companies....................................Great-West Life & Annuity
Insurance Company; The
Series Account; Investments
of the Series Account;
Voting Rights
6. Deductions ..............................................Fee Table; Key
Features-Charges and
Deductions Under the
Contracts; Distribution of
the Contracts
7. General Description of
Variable Annuity Contracts ............................The Contracts; Investments
of the Series Account;
Statement of Additional
Information
8. Annuity Period...........................................Annuity Options
<PAGE>
9. Death Benefit............................................Death Benefit; Annuity
Options
10. Purchases and Contract Value.............................Overview; The Contracts;
The Contracts-Purchase of
Contracts; Distribution of
the Contracts
11. Redemptions..............................................The Contracts; The
Contracts-Surrender and
Partial Withdrawal; Key
Features-Surrendering Your
Contract or Making Partial
Withdrawals
12. Taxes....................................................Federal Tax Consequences
13. .........................................................Legal Proceedings Legal
Proceedings
14. .........................................................Table of Contents of
Statement of Additional Information..........................Statement of Additional
Information
<PAGE>
STATEMENT OF ADDITIONAL
FORM N-4 ITEM INFORMATION CAPTION
15. Cover Page...............................................Cover Page
16. Table of Contents........................................Table of Contents
17. General Information and
History................................................Not Applicable
18. Services.................................................Custodian and Accountants
19. Purchase of Securities
Being Offered..........................................Not Applicable
20. Underwriters.............................................Underwriter
21. Calculation of
Performance Data.......................................Calculation of Performance Data
22. Annuity Payments.........................................Not Applicable
23. Financial Statements.....................................Financial Statements
</TABLE>
<PAGE>
RETIREMENT PLAN SERIES ACCOUNT
of
Great-West Life & Annuity Insurance Company
INDIVIDUAL FLEXIBLE PREMIUM VARIABLE ANNUITY CONTRACTS
Distributed by
One Orchard Equities, Inc.
Issued by
Great-West Life & Annuity Insurance Company
8515 East Orchard Road, Englewood, Colorado 80111
(800) 338-4015
=============================================================================
===============================================================================
Overview
This prospectus describes individual flexible premium variable annuity contracts
(the "Contracts") designed for Individual Retirement Annuity programs ("IRA
Programs"). The Contract provides an annuity insurance contract whose value is
based on the investment performance of Investment Divisions that you select. The
Contracts can be purchased only in connection with IRA Programs; depending on
your state of residence, there are generally three ways you can purchase a
Contract:
o with rollover proceeds from qualified plans, such as 401(k) plans, o with
rollover proceeds from other eligible rollover sources, or o with earned income.
If you purchase a Contract, your spouse may also purchase a Contract for his or
her IRA Program.
Who Should Invest
You should consider purchasing the Contract if you are seeking an investment for
your IRA Program that offers a wide range of investment and payment options
enabling you to design a retirement plan that meets your objectives and needs.
Allocating Your Investment
You can allocate your Contributions among 14 Investment Divisions of Retirement
Plan Series Account (the "Series Account"). Each Investment Division invests in
one of 14 corresponding portfolios of the Maxim Series Fund, Inc. (the "Fund").
You can also allocate your money to certain options where you can earn a fixed
rate of return. Your interest in a fixed option is not considered a security and
is not subject to registration with or review by the Securities and Exchange
Commission.
Annuity Payment Options
The Contract offers you a variety of annuity payment options. You can select
from options that provide for fixed or variable payments or a combination of
both. Under a variable annuity payment option, your annuity payments will
continue to reflect the investment experience of the Investment Divisions you
select. Annuity payments can be guaranteed for your lifetime and/or your
spouse's lifetime or for a specified period of time, depending on your needs and
circumstances.
This prospectus is accompanied by a current prospectus for the Fund. This
prospectus presents important information you should read before purchasing a
Contract. Please read it carefully and retain it for future reference. You can
find more detailed information pertaining to the Contract in the Statement of
Additional Information dated _______, ____, ___________, which has been filed
with the Securities and Exchange Commission. The Statement of Additional
Information is incorporated by reference into this prospectus, which means that
it is legally a part of this prospectus. It may be obtained without charge by
contacting Great-West Life & Annuity Insurance Company ("we," "GWL&A" or
"Great-West") at the address or telephone number set forth above. Or, you can
obtain it by visiting the Securities and Exchange Commission's web site at
www.sec.gov.
These securities have not been approved or disapproved by the Securities and
Exchange Commission nor has the Commission passed upon the accuracy or
adequacy of this prospectus.
Any representation to the contrary is a criminal offense.
The date of this prospectus is _________, ____, __________.
<PAGE>
<TABLE>
<S> <C> <C> <C> <C> <C> <C>
Table of Contents
Definitions 4
Key Features 6
Fee Table 8
Eligible Fund Annual Expenses
9
Examples 10
Condensed Financial Information
13
Great-West Life & Annuity Insurance Company 14
The Series Account 14
Eligible Funds 14
Advisers
16
Reinvestment and Redemption 16
Investments of the Series Account
16
The Contracts 17
Charges and Deductions
19
Death Benefit 21
Annuity Options
22
Periodic Payment Options
24
Federal Tax Consequences 25
Performance Related Information
28
Voting Rights 30
Distribution of the Contracts
31
Amendment of Contracts
31
Ownership 31
State Regulation
31
Reports 31
Year 2000 31
Rights Reserved by Great-West
31
Adding and Discontinuing Investment Options 31
Substitution of Investments 32
Legal Matters 32
Registration Statement
32
Statement of Additional Information 32
</TABLE>
<PAGE>
Definitions
Accumulation Period
The period between the effective date of your Contract and the Annuity
Commencement Date. During this period, you are making Contributions to the
Contract.
Accumulation Unit
An accounting measure we use to determine your Variable Account Value during the
Accumulation Period.
Administrative Offices
The Administrative Offices of GWL&A are located at 8505 East Orchard Road,
Englewood, Colorado 80111.
Annuitant
The person upon whose life the payment of an annuity is based and who will
receive annuity payments. The Annuitant must be the Contract Owner.
Annuity Account
An account established by us in your name that reflects all of your activity
under a Contract.
Annuity Commencement Date
The date annuity payments begin under an Annuity Option.
Annuity Period
The period following the Accumulation Period that begins on the Annuity
Commencement Date.
Annuity Unit
An accounting measure we use to determine the dollar value of each variable
annuity payment after the first payment.
Contribution(s)
Amounts you pay to purchase a Contract.
Contract
An agreement between GWL&A and the Contract Owner (which includes the purchase
application) providing the terms of the variable annuity offered by this
prospectus.
Contract Owner
The person to whom a Contract is issued; sometimes referred to as "you" or
"your" in this Prospectus.
Contract Value
The sum of your Variable Account Value and your Guaranteed Account Value, less
any withdrawals, deductions for charges, and any applicable Premium Tax.
Eligible Fund
A mutual fund in which an Investment Division invests all of its assets. Each
Eligible Fund is a portfolio of the Maxim Series Fund, Inc.
Fixed Annuity
An annuity with payments which remain fixed throughout the Annuity Period and
which do not reflect the investment experience of the Series Account.
Fixed Option
An option that pays a fixed rate of return to which you can allocate
Contributions or Transfers. Your interest in a fixed option is not a security
and is not subject to supervision by the Securities and Exchange Commission.
Guaranteed Account Value
The sum of the values of your Guaranteed Sub-Accounts.
Guaranteed Interest Rate
A minimum interest rate applicable to a Fixed Option. It is presently equal to
an annual effective rate of 3.00%.
Guaranteed Sub-Account
An account we maintain that reflects the values credited to you from a specific
Fixed Option.
Investment Division
The Series Account is divided into Investment Divisions, one for each Eligible
Fund. Each Investment Division invests all of its assets in one Eligible Fund.
You select one or more Investment Divisions to which you allocate Contract
Value. Contract Value you allocate to an Investment Division will reflect the
investment performance of the corresponding Eligible Fund.
Premium Tax
The amount of tax, if any, charged by a state or other governmental authority.
Request
Any request, either written, by telephone or computerized, which is in a form
satisfactory to GWL&A and received by GWL&A at its Administrative Offices.
Series Account
The segregated investment account established by GWL&A to provide funding
options for the Contract. It is registered as a unit investment trust under the
Investment Company Act of 1940.
Transfer
When you move your Contract Value between and among the Investment Divisions
and/or the Fixed Options.
Valuation Date
A date on which we calculate the Value of the Investment Divisions. This
calculation is made as the close of business of the New York Stock Exchange
(generally 4:00 p.m. ET) on each day that the New York Stock Exchange is open
for trading. Contributions and Requests received after 4:00 p.m. ET will be
considered to have been received on the next business day. On the day after
Thanksgiving, however, you can only submit transactions by automated voice
response unit or fully automated computer link.
Valuation Period
The period between the end of two successive Valuation Dates.
Variable Annuity
An annuity providing for payments, the amount of which will vary with the
performance of the Investment Divisions that you select.
Variable Account Value
The total value of your Variable Sub-Account(s).
Variable Sub-Account
An account we maintain that reflects the value credited to you from a specific
Investment Division.
<PAGE>
Key Features
Following are some of the key features of the Contract. These topics are
discussed in more detail throughout this prospectus so please be sure to read
through it carefully.
Purpose of the Contracts
The Contracts are designed to be an investment for IRA Programs. Depending on
your state of residence, there are generally three ways you can purchase a
Contract:
o.......with rollover proceeds from qualified plans, such as 401(k) plans, o
with rollover proceeds from other eligible rollover sources, or o with earned
income.
The Contracts may also be purchased for IRA Programs for spouses of Contract
Owners.
What is the Minimum Contribution The minimum initial investment is:
o.......Nothing if it is made with eligible rollover proceeds
o $250 if it is made from earned income derived from non-retirement plan sources
The minimum ongoing contribution is:
o Nothing if it is made with eligible rollover proceeds
o $250 if it is made from earned income derived from non-retirement plan sources
Allocation of Contributions
You may allocate your Contributions to the Investment Divisions of the Series
Account or to a Fixed Option, or a combination of both. The value of your
Contract that is allocated to the Investment Divisions will depend upon the
investment performance of those divisions. Each Investment Division invests in a
corresponding Eligible Fund. You can change your allocation instructions at any
time by Request.
Surrendering Your Contract or Making Partial Withdrawals
You can surrender your entire Contract or make a partial withdrawal at any time
before the Annuity Commencement Date. If you request a partial withdrawal less
than 30 days before the Annuity Commencement Date, we may delay the Annuity
Commencement Date for up to 30 days. Upon a surrender or partial withdrawal, a
penalty tax may be assessed. Please see "Federal Tax Consequences."
Transfers
You may Transfer your Contract Value among the Investment Divisions and/or the
Fixed Options at any time before the Annuity Commencement Date.
Annuity Options
The Contracts provide several annuity payment options. You can select from
options that provide for fixed or variable payments or a combination of both.
Under a variable payment option your annuity payments will reflect the
performance of the Investment Divisions that you select. You must elect an
annuity option(s) at least 30 days before your Annuity Commencement Date. If you
do not make an election within this timeframe, annuity payments will begin
automatically on the Annuity Commencement Date under an option providing for a
life annuity with 120 monthly payments certain.
Free Look Period
During the free look period, you may cancel your Contract within 20 days (or
longer where required by law) of receiving it. You may cancel it for any reason
by delivering or mailing it along with a Request to cancel to our Administrative
Offices and we will refund to you the greater of:
o.......Contributions you have made less withdrawals, or
o your Contract Value.
A Wide Range of Investment Choices
You may allocate some or all of your Contributions to 14 Investment Divisions of
the Series Account. Each Investment Division invests in shares of one Eligible
Fund. Each Eligible Fund is a separate mutual fund that has distinct investment
objectives and policies. You can obtain a more complete description of the
Eligible Funds in the accompanying prospectus for the Fund, which you should
read carefully before allocating to an Investment Division. We reserve the right
to add or delete Investment Divisions at our discretion.
Charges and Deductions under the Contract
You will pay certain charges under the Contract. These charges may include:
o.......An annual Contract Maintenance Charge
o An administrative fee if you surrender your Contract or make a partial
withdrawal within the first twelve months
o A mortality and expense risk charge
o A Premium Tax
In addition, you indirectly pay the management fees and other expenses of an
Eligible Fund when you allocate your money to the corresponding Investment
Division.
<PAGE>
Fee Table
The purpose of this table and the examples that follow is to assist you in
understanding the various costs and expenses that you will bear directly or
indirectly when investing in the Contract. The table and examples reflect
expenses related to the Contracts and the Eligible Funds.
<TABLE>
<S> <C> <C> <C> <C> <C> <C>
Contract Owner Transaction Expenses
Sales load imposed on purchases None
Deferred sales load None
Distribution fees None
Exchange fee None
Administrative fee if your Contract is surrendered during first 12 months
$50
Administrative fee if your make a partial withdrawal during first 12 months
$25
Contract Maintenance Charge $30*
</TABLE>
* You will be charged a Contract Maintenance Charge of $30 if your Contract
Value is less than $5,000 on December 31. We will assess this fee only if your
Contract was issued on or after July 8, 1998, and the assessment of the fee has
been approved by the insurance regulatory authorities of your state.
Annual Expenses of the Investment Divisions (as a percentage of average Variable
Account Value) The only expense of the Investment Divisions of the Series
Account is our deduction of a Mortality and Expense Risk Charge. The amount of
this charge that applies to your Contract
will be based on the following schedule:
-------------------------- -----------------------
Mortality & Expense Risk Contract Value
Charge
-------------------------- -----------------------
0.75% $0 - $9,999.99
-------------------------- -----------------------
-------------------------- -----------------------
0.50% $10,000 - $24,999.99
-------------------------- -----------------------
-------------------------- -----------------------
0.25% $25,000 - $49,999.99
-------------------------- -----------------------
-------------------------- -----------------------
0.00% $50,000 and greater
-------------------------- -----------------------
The mortality and expense charge for the first calendar year of your Contract
will be based on your initial Contribution. Thereafter, the amount of the charge
will be based on your Contract Value on December 31 of each year. You may wish
to monitor your Contract Value closely to ensure that you take advantage of the
lowest possible charge.
<PAGE>
<TABLE>
Eligible Fund Annual Expenses
(as a percentage of average daily net assets)
<S> <C> <C> <C> <C> <C> <C>
Portfolio Management Fees Other Expenses Total Maxim Series
Fund Annual Expenses
Money Market Portfolio 0.46% None 0.46%
Investment Grade
Corporate Bond Portfolio 0.60% None 0.60%
Stock Index Portfolio 0.60% None 0.60%
U.S. Government
Mortgage Securities
Portfolio 0.60% None 0.60%
Small-Cap Index 0.60% None 0.60%
Portfolio
Growth Index Portfolio 0.60% None 0.60%
Short-Term Maturity
Bond Portfolio 0.60% None 0.60%
Blue Chip Portfolio 1.00% 0.15% 1.15%
Value Index Portfolio 0.60% None 0.60%
Small-Cap Value 1.00% 0.26% 1.26%
Portfolio
Foreign Equity Portfolio 1.00% 0.30% 1.30%
Small-Cap Aggressive
Growth Portfolio 1.00% 0.11% 1.11%
Corporate Bond Portfolio 0.90% None 0.90%
MidCap Growth Portfolio 1.00% 0.05% 1.05%
<PAGE>
Examples
If you do not surrender your Contract, or if you annuitize at the end of the
applicable time period, you would pay the following expenses on a $1,000
investment, assuming a 5% annual return:
Investment Division 1 Year 3 Year 5 Year 10 Year
Money Market
Investment Division
Investment Grade
Corporate Bond
Investment Division
Stock Index
Investment Division
U.S. Government
Mortgage Securities
Investment Division
Small-Cap Index
Investment Division
Growth Index
Investment Division
Short-Term Maturity
Bond Investment
Division
Blue Chip
Investment Division
Value Index
Investment Division
Small-Cap Value
Investment Division
Foreign Equity
Investment Division
Small-Cap
Aggressive Growth
Investment Division
Corporate Bond
Investment Division
MidCap Growth
Investment Division
Examples (Cont.)
If you surrender your Contract at the end of the applicable time period, you
would pay the following expenses on a $1,000 investment, assuming a 5% annual
return:
Investment Division 1 Year 3 Year 5 Year 10 Year
Money Market
Investment Division
Investment Grade
Corporate Bond
Investment Division
Stock Index
Investment Division
U.S. Government
Mortgage Securities
Investment Division
Small-Cap Index
Investment Division
Growth Index
Investment Division
Short-Term Maturity
Bond Investment
Division
Blue Chip
Investment Division
Value Index
Investment Division
Small-Cap Value
Investment Division
Foreign Equity
Investment Division
Small-Cap
Aggressive Growth
Investment Division
Corporate Bond
Investment Division
MidCap Growth
Investment Division
</TABLE>
These examples should not be considered a representation of past or future
expenses. They show the highest level of mortality and expense risk charges that
you might pay. The tables do not reflect the imposition of the Contract
Maintenance Charge. Actual expenses may be more or less than those shown.
<PAGE>
31
27
Condensed Financial Information
Attached as Appendix A is a table showing selected information concerning
Accumulation Units for each Investment Division. An Accumulation Unit is the
unit of measure that we use to calculate the value of your interest in an
Investment Division. The Accumulation Unit values do not reflect the deduction
of certain charges that are subtracted from your Annuity Account Value, such as
the Contract Maintenance Charge. The information in the table is included in the
Series Account's financial statements, which have been audited by Deloitte &
Touche LLP, independent auditors. To obtain a fuller picture of each Investment
Division's finances and performance, you should also review the Series Account's
financial statements, which are contained in the Statement of Additional
Information.
<PAGE>
Great-West Life & Annuity Insurance Company
GWL&A is a stock life insurance company originally organized under the laws of
the state of Kansas as the National Interment Association. Its name was changed
to Ranger National Life Insurance Company in 1963 and to Insuramerica
Corporation prior to changing to its current name in 1982. In September of 1990,
GWL&A redomesticated and is now organized under the laws of the state of
Colorado.
GWL&A is authorized to engage in the sale of life insurance, accident and health
insurance and annuities. It is qualified to do business in the District of
Columbia, Puerto Rico, the U.S. Virgin Islands, Guam and 49 states in the United
States.
GWL&A is an indirect, wholly-owned subsidiary of The Great-West Life Assurance
Company ("Great-West Life"). Great-West Life is a subsidiary of Great-West
Lifeco Inc., a holding company. Great-West Lifeco Inc. is in turn a subsidiary
of Power Financial Corporation, a financial services company. Power Corporation
of Canada, a holding and management company, has voting control of Power
Financial Corporation. Mr. Paul Desmarais, through a group of private holding
companies, which he controls, has voting control of Power Corporation of Canada.
GWL&A is the issuer of the Contracts and it has primary responsibility for their
administration.
The Series Account
We organized the Series Account under Colorado law on January 25, 1994. The
Series Account is registered with the Securities and Exchange Commission as a
unit investment trust under the Investment Company Act of 1940. However, this
registration does not involve supervision of the management or investment
practices or polices of the Series Account or GWL&A by the Securities and
Exchange Commission.
We own the assets of the Series Account. The income, gains or losses, realized
or unrealized, from assets allocated to an Investment Division are credited to
or charged against that Investment Division without regard to the other income
gains or losses of any other Investment Division and without regard to any other
business GWL&A may conduct.
We will at all time maintain assets in the Series Account with a total market
value at least equal to the reserves and other liabilities relating to the
variable benefits under all Contracts participating in the Series Account. Those
assets may not be charged with our liabilities from our other business. Our
obligations under those Contracts are, however, our general corporate
obligations.
The Series Account currently has 14 Investment Divisions available for
allocation of Contributions. Each Investment Division invests exclusively in
shares of one Eligible Fund. We may
in the future add new Investment Divisions or delete existing ones. The income,
gains or losses, realized or unrealized, from assets allocated to each
Sub-Account are credited to or charged against that Sub-Account without regard
to the other income, gains or losses of the other Sub-Accounts. All amounts
allocated to an Investment Division will be invested in the corresponding
Eligible Fund.
We hold the assets of the Series Account. We keep those assets physically
segregated and held separate and apart from our general account assets. We
maintain records of all purchases and redemptions of shares of the portfolios.
We do not guarantee the investment performance of the Investment Divisions. Your
Variable Account Value and the amount of variable annuity payments depend on the
investment performance of the Eligible Funds. Therefore, Contract Owners bear
the full investment risk for all Contributions allocated to the Investment
Divisions.
If we decide to make additional Investment
Divisions available in the future, we may or may not make them available to
existing Contract Owners, based on our assessment of marketing needs and
conditions.
Eligible Funds
The Contract offers a number of investment options, corresponding to the
Investment Divisions. Each Investment Division invests in a single Eligible
Fund. Each Eligible Fund is a separate mutual fund having its own objectives and
investment policies. Each Eligible Fund is a separate mutual fund that is
registered with the Securities and Exchange Commission under the Investment
Company Act of 1940. This registration does not involve supervision of the
Eligible Funds by the Securities and Exchange Commission. More comprehensive
information, including a discussion of potential risks, is found in the current
prospectuses for the Eligible Funds. The prospectuses should be read in
connection with this prospectus. You may obtain a copy of the Eligible Fund
prospectuses without charge by Request.
The income, gains and losses of one Eligible Fund generally have no effect on
the investment performance of any other portfolio.
The Eligible Funds include the following:
o.......The Money Market Portfolio seeks as high a level of current income as is
consistent with the preservation of capital and liquidity. Investment in the
Money Market Portfolio is not insured or guaranteed by the Federal Deposit
Insurance Corporation or any other government agency. Although the portfolio
seeks to preserve the value of your investment at $1.00 per share, it is
possible to lose money by investing in this portfolio.
o.......The Investment Grade Corporate Bond Portfolio seeks the highest possible
current income within the confines of the primary goal of insuring the
protection of capital by investing primarily in investment grade corporate
debt securities and in debt securities issued by the U.S. Government and its
agencies.
o.......The Stock Index Portfolio seeks investment results that track the total
return of the common stocks that comprise Standard & Poor's (S&P) 500
Composite Stock Price Index and the S&P Mid-Cap Index, weighted according to
their respective pro-rata shares of the market.
o.......The U.S. Government Mortgage Securities Portfolio seeks the highest
level of return consistent with preservation of capital and substantial
credit protection by investing in mortgage-related securities issued or
guaranteed by an agency or instrumentality of the U.S. Government, other
U.S. agency and instrumentality obligations, and in U.S. Treasury
obligations.
o.......The Small-Cap Index Portfolio seeks investment results that track the
total return of the common stocks that comprise the S&P Small-Cap 600 Stock
Index.1
o.......The Value Index Portfolio seeks investment results that track the total
return of the common stocks that comprise the Russell 1000 Value Index.2
o.......The Growth Index Portfolio seeks investment results that track the total
return of the common stocks that comprise the Russell 1000 Growth Index.
o.......The Small-Cap Value Portfolio seeks long term appreciation, by investing
primarily in small-cap common stocks. This portfolio will emphasize small
companies that are believed to be undervalued and may invest in mid-sized
companies with similar characteristics.
o.......The Foreign Equity Portfolio seeks total return from long-term growth of
capital and dividend income by investing its assets primarily in
international equity securities which are predominantly common stocks and
may also include any types of equity securities.
o The Maxim Small-Cap Aggressive Growth Portfolio seeks long-term capital
growth. This portfolio seeks to build a core small-cap portfolio of solid
growth companies' stock with a small emphasis on companies that have
experienced significant business problems but which are believed to have
favorable prospects for recovery.
o.......The Corporate Bond Portfolio seeks high total investment return through
a combination of current income and capital preservation. This portfolio
will invest at least 65% of its total assets in corporate debt securities of
any maturity. It may also invest up to 20% of its total assets in preferred
stocks or foreign securities and up to 35% in below investment grade quality
securities.
o.......The Short-Term Maturity Bond Portfolio seeks preservation of capital,
liquidity and maximum total return through investment in an actively managed
portfolio of debt securities.
o.......The Maxim Blue Chip Portfolio seeks long-term growth of capital and
income. This portfolio invests primarily in common stocks of large, well
established, stable and mature companies, commonly known as "Blue Chip"
companies.
o.......The MidCap Growth Portfolio seeks long-term appreciation. This portfolio
will invest primarily in a diversified portfolio of mid-cap companies
emphasizing companies whose earnings are expected to grow at a faster rate
than the average mid-cap company.
1 Standard & Poor's Small-Cap 600 Stock Index is a trademark of The McGraw-Hill
Companies, Inc. and has been licensed for use by the Fund and GWL&A. The
portfolio is not sponsored, endorsed, sold or promoted by Standard & Poor's and
Standard & Poor's makes no representation regarding the advisability of using
this index. 2 The Frank Russell Company is not a sponsor of, or in any other way
affiliated with, the Eligible Funds.
Where to Find More Information about the Portfolios
Additional information about the Eligible Funds can be found in the current
prospectus for the Maxim Series Fund, Inc., which can be obtained from us.
Advisers
Investment Adviser
The investment adviser (the "Investment Adviser") for the Fund is GW Capital
Management LLC, 8515 East Orchard Road, Englewood, Colorado 80111. The
Investment Adviser is an affiliate of GWL&A.
Sub-Advisers
Ariel Capital Management Inc. ("Ariel"), located at 307 N. Michigan Avenue,
Chicago, Illinois 60601, is responsible for the day-to-day management of the
Small-Cap Value Portfolio and for making decisions to buy, sell or hold any
particular security.
Loomis, Sayles & Company, Inc. ("Loomis Sayles"), located at One Financial
Center, Boston, Massachusetts 02111, is responsible for the day-to-day
management of the Small-Cap Aggressive Growth, Foreign Equity and Corporate Bond
Portfolios.
Founders Asset Management, LLC ("Founders"), located at 2930 East Third Avenue,
Denver, Colorado, 80206, is responsible for the day-to-day management of the
Blue Chip Portfolio.
T. Rowe Price Associates, Inc. ("T. Rowe Price"), located at 100 East Pratt
Street, Baltimore, Maryland, 21202, is responsible for the day-to-day management
of the MidCap Growth Portfolio.
Reinvestment and Redemption
All dividend and capital gains distributions made by an Eligible Fund will be
automatically reinvested in shares of that portfolio. We will redeem portfolio
shares at their net asset values to the extent necessary to make annuity or
other payments under the variable portion of your Contract.
Investments of the Series Account Shares of the Fund are also sold to the
following:
o.......the FutureFunds Series Account and Maxim Series Account, which are
separate accounts established by GWL&A to receive and invest premiums paid
under variable annuity contracts issued by GWL&A,
o the TNE Series (k) Account of Metropolitan Life Insurance Company to fund
benefits under variable annuity contracts,
o the Pinnacle Series Account of GWL&A to fund variable life insurance policies,
and o other separate accounts of GWL&A, its affiliates and other insurance
companies.
It is possible that, in the future, it may be disadvantageous for variable life
insurance separate accounts and variable annuity separate accounts to invest in
the Fund at the same time. Although disadvantages are not currently foreseen,
the Board of Directors of the Fund intends to monitor events in order to
identify any material conflicts between variable life insurance policyowners and
variable annuity contract owners and to determine what action, if any, should be
taken in response thereto. Such action could include the sale of the Fund's
shares by one or more of GWL&A's separate accounts which could have adverse
consequences. For example, material conflicts could result from changes in state
insurance laws, changes in Federal income tax laws, changes in the investment
management of any portfolio of the Fund, or differences in voting instructions
between those given by policyowners and those given by contract owners.
Meeting investment objectives depends on various factors, including, but not
limited to, how well the portfolio managers anticipate changing economic and
market conditions. There is no guarantee that any of the Eligible Funds will
achieve their stated objectives.
The Contracts
Application and Initial Contribution
The first step to purchasing a Contract is to fill out your application and
forward it to our Administrative Offices along with your initial Contribution.
Depending on your state of residence, there are generally three ways you can
purchase a Contract:
o.......with rollover proceeds from qualified plans, such as 401(k) plans, o
with rollover proceeds from other eligible rollover sources, or o with earned
income.
The Contract may also be purchased for an IRA Program for your spouse.
There is no minimum initial Contribution if you purchase the Contract with
eligible rollover proceeds. Otherwise, the minimum initial amount needed to
purchase the Contract is $250.
If your application is complete, your Contract will be issued and your initial
Contribution will be credited within two business days of receipt at our
Administrative Offices. Acceptance is subject to sufficient information in a
form acceptable to us. We reserve the right to reject any application or
Contribution.
If your application is incomplete, we will contact you by telephone to obtain
the required information. If we are able to complete your application within
five business days of our receipt of your incomplete application, we will credit
your initial Contribution within two business days of the application's
completion. If we cannot complete your application within five business days
after we receive it, we will immediately return your application and initial
Contribution. If you provide consent, we will retain your initial Contribution
and credit it as soon as we have completed your application.
Free Look Period
During the free look period, you may cancel your Contract within twenty days (or
longer where required by law) after you receive it. During the free look period,
all Contributions you have instructed us to allocate to the Investment Divisions
will be allocated to the Money Market Investment Division. When the free look
period ends, your Variable Account Value held in the Money Market Investment
Division will be allocated to the Investment Divisions you have selected.
During the free look period, you may change the Investment Divisions in which
you would like to invest as well as your allocation percentages. Any changes you
make during the free look period will take effect after the free look period has
expired.
Any returned Contracts will be void from the date we issued the Contract to you
and the greater of the following will be refunded to you:
o Contributions, less withdrawals, or
o your Contract Value.
If you exercise the free look privilege, you must return the Contract to us at
our Administrative Offices. To cancel a Contract we must receive it personally
or postmarked by the expiration of the free look period.
Subsequent Contributions
Once your application is complete and we have received your initial
Contribution, you can make subsequent Contributions at any time prior to the
Annuity Commencement Date or the date you begin receiving payments under a
periodic payment option. There is no minimum Contribution amount if
Contributions are being made with eligible rollover proceeds.
Otherwise, the minimum ongoing Contribution amount is $250.
Contract Value
Before the Annuity Commencement Date, your Contract Value is the sum of your
Variable and Guaranteed Sub-Accounts.
Before your Annuity Commencement Date, your Variable Account Value is the total
dollar amount of all Accumulation Units credited to you from each Investment
Division in which you have invested money. When you allocate Contributions or
make Transfers to an Investment Division, we credit you with Accumulation Units
of that Division. We determine the number of Accumulation Units credited to you
by dividing the amount of your Contribution or Transfer by the Investment
Division's Accumulation Unit value on the Valuation Date your Contribution is
received or Transfer is processed.
We determine each Investment Division's Accumulation Unit value on each
Valuation Date as of the close of the New York Stock Exchange (generally 4:00
p.m. ET). We multiply the Division's Accumulation Unit value on the immediately
preceding Valuation Date by the Division's Net Investment Factor to arrive at
the current Valuation Date's Accumulation Unit value. Each Investment Division's
Accumulation Unit value is expected to change on a daily basis due to, among
other things, the investment experience of the Eligible Fund in which the
Division invests and the deduction of the Mortality and Expense Risk Charge. We
use the Net Investment Factor to determine the amount of this change, if any.
The formula we use to calculate the Net Investment Factor is described in
Appendix B. On any given Valuation Date, an Investment Division's Net Investment
Factor may be greater than one, less than one or zero. This means that an
Investment Division's Accumulation Unit value on that Valuation Date may
increase, decrease or remain unchanged.
Transfers
At any time before the Annuity Commencement Date, you can transfer all or a
portion of your Contract Value among and between the Investment Divisions and/or
the Fixed Option by Request. Transfer Requests can only be made by the Contract
Owner. A Transfer generally will be effective on the date the Request is
received if received before 4:00 p.m. ET, unless your Request designates some
later date. A Transfer Request we receive after 4:00 p.m. ET will be considered
received on the next following Valuation Date. If we receive a Transfer Request
within 30 days of the Annuity Commencement Date, we may delay the Annuity
Commencement Date by not more than 30 days. Additional Transfer conditions apply
to Transfers involving the Fixed Options, as more fully described in your
Contract.
You can make Transfer Requests by telephone if you have completed and sent to us
a Telephone Request Form. The Form may be obtained by contacting our
Administrative Offices. Telephone Transfers completed before 4:00 p.m. EST/EDT
will be made on that day at that day's unit values. Calls completed after 4:00
p.m. EST/EDT will be made on the next Valuation Date, at that day's unit values.
We will use reasonable procedures to confirm that instructions communicated by
telephone are genuine such as:
o requiring some form of personal identification prior to acting on
instructions, o providing written confirmation of the transaction, and/or o tape
recording the instructions given by telephone.
If we follow these procedures, we will not be liable for my loses due to
unauthorized or fraudulent telephone instructions. We reserve the right to
suspend telephone privileges at anytime, for some or all Contracts, and for any
reason.
Cash Withdrawals
You may withdraw all or part of your Contract Value at any time before the date
annuity payments begin by submitting a written withdrawal Request to our
Administrative Offices. The amount payable to you if you surrender your Contract
is your Contract Value as determined on the Valuation Date we receive your
Request. If you surrender your Contract, that is, make a withdrawal of your
entire Contract Value, all rights under the Contract will terminate. You should
know that you can apply amounts payable upon surrender to an annuity payment
option instead of taking a lump sum.
If you request a partial withdrawal, your Contract Value will be reduced by the
dollar amount withdrawn. Partial withdrawals are unlimited. You must specify the
Investment Divisions or Fixed Options from which the withdrawal is to be made.
If we receive your request for a partial withdrawal less then 30 days before
your Annuity Commencement Date, we may, at our option, delay the Annuity
Commencement Date for up to 30 days. You should know that you may have to pay
Premium Tax upon making a surrender or partial withdrawal.
Amounts payable to you upon a surrender or partial withdrawal attributable to
your Variable Account will be paid within seven days of our receipt of your
Request. However, we may postpone payment of these amounts for any longer period
as permitted by the Securities and Exchange Commission.
If you surrender your Contract during the first twelve months after you
purchased it, we will assess a $50.00 administrative fee. Similarly, if you make
a partial withdrawal during that first twelve months, we will assess a $25.00
administrative fee. In addition, you may be required to pay taxes on amounts you
receive from a surrender or partial withdrawal, including a 10% penalty tax.
Please refer to your Contract for additional restrictions that may apply to
withdrawals involving your Guaranteed Account.
Charges and Deductions
Contract Maintenance Charge
We deduct $30 from your Contract Value if your Contract Value is less than
$5,000 on December 31 of any year. We will assess this fee only if your Contract
was issued on or after July 8, 1998, and the assessment of the fee has been
approved by the insurance regulatory authorities of your state of residence. We
assess this charge during the second quarter after December 31 on which your
Contract Value was less than $5,000.
Sales Charge
We do not impose any sales charges.
Administrative Fee
We impose a $50 charge if you surrender your Contract during the first 12 months
after it was issued to you. We do not assess this charge, however, if you cancel
your Contract during the free look period. We impose a $25 charge if you make a
partial withdrawal during the first 12 months after the Contract was issued to
you.
Premium Taxes
The applicable Premium Tax rates that states and other governmental entities
impose currently range from 0% to 3.5% and are subject to change. These Premium
Taxes will depend, among other things, on the state of residence of the Contract
Owner and the insurance tax laws and status of GWL&A in these states when the
Premium Taxes are incurred.
We presently make no deduction from Contributions for Premium Taxes; however, we
reserve the right to make such deductions from Contributions, the Contract Value
upon the annuity date, and surrender or partial withdrawal amounts or periodic
payment amounts.
Mortality and Expense Risk Charge
We deduct from each Investment Division's Accumulation Unit value an amount,
computed daily, a mortality and expense risk charge which is equal to an annual
rate as described below. This charge is intended to compensate us for the
mortality and expense risks we assume under the Contracts.
The level of the mortality and expense risk charge applicable to your Contract
during the first calendar year will be based upon your initial Contribution, in
accordance with the schedule set forth below. The amount of this charge in
subsequent calendar years will be based upon your Contract Value as of December
31 of the previous calendar year, in accordance with the schedule.
-------------------------- --------------------------
M & E Risk Charge Contract Value
-------------------------- --------------------------
-------------------------- --------------------------
0.75% From $0 - 9,999.99
-------------------------- --------------------------
-------------------------- --------------------------
0.50% From $10,000 - 24,999.99
-------------------------- --------------------------
-------------------------- --------------------------
0.25% From $25,000 - 49,999.99
-------------------------- --------------------------
-------------------------- --------------------------
0.00% From $50,000 and greater
-------------------------- --------------------------
Since we determine the level of the mortality and expense risk charge based on
your December 31 Contract Value, you should monitor your Contract Value closely
to ensure that, to the extent possible, you are taking advantage of the lowest
possible level of the charge. Each level of this charge is guaranteed and will
not be increased.
Eliglbe Fund Expenses Your Variable Account Value reflects the value of Eligible
Fund shares and, therefore, the fees and expenses paid by the Eligible Fund. A
complete description of the fees, expenses and deductions from the Eligible
Funds is found in the accompanying prospectus for the Fund.
Death Benefit
We will pay a death benefit to your beneficiary upon our receipt of proof of
your death if your death occurs before the Annuity Commencement Date. The death
benefit, if any, will be your Contract Value as of the date of your death.
If you die after the Annuity Commencement Date, the remaining portion of your
interest will continue to be distributed at least as quickly as under the method
of distribution being used before your death.
If you die before the Annuity Commencement Date, we will complete distribution
of your entire interest within five years of your date of death, except to the
extent that you make an election to receive distributions in accordance with one
of the following:
o If your interest is payable to a designated beneficiary, then your whole
interest may be distributed over the life or life expectancy of that
beneficiary or over a period not extending beyond the life expectancy of the
beneficiary beginning not later than one year after your date of death.
o If the only designated beneficiary is your surviving spouse, the date
distributions are required to begin under the above cannot be earlier than
the later of (1) December 31 of the year right after the year in which you
died or (2) December 31 of the year in which you would have reached age 70
1/2.
If the designated beneficiary is your surviving spouse, your spouse may treat
the Contract as his or her own IRA. This election will be considered to have
been made if your surviving spouse makes a regular IRA contribution to the
Contract, makes a rollover to or from such Contract, or fails to choose any of
the above provisions.
We compute life expectancy by using the expected return multiples in Tables V
and VI of section 1.72-9 of the Income Tax Regulations. For purposes of
distributions that begin after your death, life expectancies will be
recalculated annually, unless your surviving spouse elects otherwise by the time
distributions are required to begin. Such an election will be irrevocable by
your surviving spouse and will apply to all subsequent years. In the case of any
other designated beneficiary, life expectancies will be calculated using the
attained age of that beneficiary in the year in which distributions are required
to begin under this section. In that case, payments for any subsequent calendar
year will be calculated based on such life expectancy decreased by one for each
year which has passed since the year life expectancy was first calculated.
Distributions under this section are considered to have begun if they are made
on account of you reaching your required beginning date or if, before your
required beginning date, distributions irrevocably begin to you over a period
allowed and in an annuity form acceptable under section 1.401(a)(9) of the
Income Tax Regulations.
You may designate or change a beneficiary by filing a Request with GWL&A at its
Administrative Offices. Each change of beneficiary that you make revokes any
previous designation. Unless otherwise provided in the beneficiary designation,
one of the following procedures will take place on the death of a beneficiary:
o if there is more than one primary surviving beneficiary, your Contract Value
will be shared equally among them,
o if any primary beneficiary dies before you, that beneficiary's interest will
pass to any other named surviving primary beneficiary or beneficiaries, to
be shared equally,
o if there is no surviving primary beneficiary, your Contract Value will pass
to any surviving contingent beneficiary, and if more than one contingent
beneficiary, will be shared equally among them,
o if no beneficiary survives you, your Contract Value will pass to your estate,
or
o if the designation of the beneficiary was not adequately made, your Contract
Value will pass to your estate.
Annuity Options
You can choose an Annuity Commencement Date and the form of annuity payments
("Annuity Options") at any time during the Accumulation Period. The Annuity
Commencement Date you elect generally must, to avoid the imposition of an excise
tax, not be later than April 1 of the year right after the year in which you
attain age 70 1/2 without regard to your actual retirement date or termination
of employment date. It is your responsibility to file the necessary Request with
GWL&A.
You may postpone or accelerate your Annuity Commencement Date, or change any of
your Annuity Option elections, by sending a Request to our Administrative
Offices up to 30 days before the existing Annuity Commencement Date. If any
Annuity Commencement Date you have elected would be less than 30 days from the
date your Request is received, we may delay the date you have elected, but not
by more than 30 days.
The Contract provides for the Annuity Options described below, as well as other
Annuity Options that we may choose to make available in the future. Except as
otherwise noted, the Annuity Options provide for payments on a variable, fixed
or combination basis. You may elect more than one Annuity Option. If you do not
elect an Annuity Option, your Contract automatically provides for a variable
life annuity (with respect to the variable portion of your Contract) and/or a
fixed life annuity (with respect to the fixed portion of your Contract) with 120
monthly payments guaranteed.
The level of annuity payments under the following options is based on the option
selected and, depending on the option chosen, such factors as the age at which
payments begin and the frequency and duration of payments.
o Option No. 1: Fixed Life Annuity
This option provides an annuity payable monthly during the lifetime of the
Annuitant. It would be possible under this option for the Annuitant to receive
no annuity payment if he/she died before the date of the first annuity payment,
one annuity payment if the Annuitant died before the second annuity payment,
etc.
o Option No. 2: Fixed Life Annuity with Payments Guaranteed for Designated
Periods
This option provides monthly payments during a guaranteed period or for the
lifetime of the Annuitant, whichever is longer. Under this option, there is a
guarantee that if, at the death of the Annuitant, payments have been made for
less than the designated period, the beneficiary will receive payments for the
rest of the period. The designated period may be 5, 10, 15, or 20 years.
o Option No. 3: Joint and One-Half Survivor (available only as fixed dollar
payments)
This option provides an annuity payable during the joint lifetime of the
Annuitant and a designated second person, and thereafter during the remaining
lifetime of the survivor. After the death of the annuitant, and while only the
designated second person is alive, the amount payable will be one-half of the
amount paid while both were living. It would be possible under this option for
the annuitant and the beneficiary to receive no annuity payment if both persons
died prior to the date of the first annuity payment, one annuity payment if both
persons died before the second annuity payment, etc.
o Option No. 4: Income of Specified Amount (available only as fixed dollar
payments)
Under this option, the amount of the periodic benefit may be paid in equal
annual, semiannual, quarterly, or monthly installments in the dollar amount
elected, provided that the annuity payment period is not less than 36 months nor
more than 240 months.
o Option No. 5: Income for Specified Period (available only as fixed dollar
payments)
Under this option, payments are paid annually, semi-annually, quarterly or
monthly, as elected, for a selected period of not less than 36 months nor more
than 240 months.
o Option No. 6: Fixed Life Annuity with Installment Refund Period
Under this payment option, monthly payments will be paid for the life of the
Annuitant or until the sum of the payments made equals the amount applied,
whichever is greater. This option may not be available in all states or under
your Contract.
Variable Annuity Payments
Variable annuity payments will be determined on the basis of:
o the Variable Account Value prior to the Annuity Commencement Date;
o the annuity tables contained in the Contract which reflect your age;
o the type of annuity option(s) selected; and
o the investment performance of the Eligible Funds after the Annuity
Commencement Date.
You receive the value of a fixed number of Annuity Units each month.
On the Annuity Commencement Date, we determine the number of Annuity Units for
each Variable Sub-Account on which variable annuity payments are based. We
calculate the number of Annuity Units for each Variable Sub-Account by dividing
the amount of the first monthly payment by the value of an Annuity Unit on the
fifth Valuation Period before the Annuity Commencement Date in each Variable
Sub-Account selected. Although the number of Annuity Units is fixed by this
process, the value of the units will vary with the performance of the Eligible
Fund.
The dollar amount of the first monthly variable annuity payment is determined by
applying the total value of the Accumulation Units credited to the Contract
Value on the fifth Valuation Period before the Annuity Commencement Date to the
annuity tables contained in the Contract. Amounts shown in the tables are based
on the 1983 Table (a) for Individual Annuity Valuation with an assumed
investment return at the rate of 3.0% per annum. The first annuity payment is
determined by multiplying the benefit per $1,000 of value shown in the Contract
tables by the number of thousands of dollars of value accumulated under the
Variable Account Value. These annuity tables vary according to the form of
annuity selected and according to your age at the Annuity Commencement Date.
The 3.0% interest rate stated above is the measuring point for subsequent
annuity payments. If the actual Net Investment Factor (annualized) exceeds 3.0%,
the payment will increase at a rate equal to the amount of this excess. However,
if the actual rate is less than 3.0%, annuity payments will decrease. If the
assumed rate of interest were to be increased, annuity payments would start at a
higher level but would increase more slowly or decrease more rapidly.
The amount of subsequent payments is determined by multiplying the number of
Annuity Units to be paid by the appropriate Annuity Unit value on the fifth
Valuation Period before the date the payment is due. The Annuity Unit value at
the end of any Valuation Period is determined by multiplying the Annuity Unit
value for the immediately preceding Valuation Period by the product of:
o the Net Investment Factor of the Variable Sub-Account for the Valuation
Period for which the Annuity Unit is being determined, and
o a factor of .999932 to neutralize the assumed investment return of 3.0% per
year used in the annuity table.
The value of the Annuity Units is determined as of a Valuation Period five days
before the payment in order to allow the calculation of the amount of annuity
payments and the mailing of checks before their due date.
Fixed Annuity Payments
The guaranteed level of fixed annuity payments will be determined on the basis
of:
o the Guaranteed Account Value before the Annuity Commencement Date,
o the annuity tables contained in the Contract which reflect your age, and
o the type of annuity option(s) elected.
The payment amount may be greater, however, if we are using a more favorable
table on your Annuity Commencement Date.
Combination Variable and Fixed Annuity Payments
If an election is made to receive annuity payments on a combination variable and
fixed basis, the Variable Account Value will be applied to the variable annuity
option elected and the Guaranteed Account Value will be applied to the fixed
annuity option.
Proof of Age and Survival
We may require proof of age and survival from any payee if payments depend on
that payee's age or survival.
Frequency and Amount of Annuity Payments
Variable annuity payments will be paid as monthly installments. Fixed annuity
payments will be paid annually, semiannually, quarterly or monthly, as
requested. However, if any payment to be made under any annuity option will be
less than $100 we may make the payments in the most frequent interval which
produces a payment of at least $100. If the net amount available to apply under
any Annuity Option is less than $2,000, we may pay it in one lump sum. The
maximum amount that may be applied under an Annuity Option without the prior
written consent of GWL&A is $1,000,000.00.
Periodic Payment Options
We offer two distribution options that are not considered Annuity options: The
Estate Maximizer Option ("EMO") and the Flexible Payment Option ("FPO"). These
options are available to any Contract Owner, but with respect to the EMO, you
must be at least age 70 1/2.
Since EMO and FPO are not Annuity options, your Contract remains in the
Accumulation Period and retains all rights and flexibility described in this
prospectus. When we make payments to you under these options, the value of
Accumulation Units canceled will be withdrawn in the same order that the
Contributions were applied to your Contract and on a pro rata basis; that is,
proportioned across the Investment Divisions to which you have allocated your
Contributions.
Distributions from a periodic payment option before age 59 1/2 may be subject to
an early withdrawal penalty under the Internal Revenue Code. Distributions after
age 59 1/2 will not be subject to penalties as long as payments are
substantially level and are paid over a period of not less than five years.
All payments made to you when you reach age 70 1/2 from any periodic payment
option must comply with the Internal Revenue Code's minimum distribution
regulations.
We reserve the right to discontinue the availability of these distribution
options and to change the terms for future elections.
Once you elect an option, you may revoke it at any time by submitting a Request
to our Administrative Offices. Any revocation you make will apply only to the
amounts that have not yet been paid. Once you revoke an EMO or FPO, you may not
elect it again.
If any periodic payment will be less than $100, we may make the payments in the
most frequent interval which produces a payment of at least $100.
FPO is different from EMO in the following ways:
o FPO payments are made for a fixed dollar amount or a fixed time period
whereas EMO payments vary in dollar amount and can continue indefinitely
during your lifetime, and
o generally, FPO payments will be higher than expected EMO payments.
You should carefully assess your future income needs when considering the
election of these distribution options.
Estate Maximizer Option ("EMO")
We will calculate and distribute an annual amount using the method contained in
the Internal Revenue Code's minimum distribution regulations. You specify the
initial distribution date. Subsequent distributions will be made on the 15th of
any month (or the next Valuation Date if the 15th is not a Valuation Date) or
another date we may designate or allow. The annual distribution is determined by
dividing your Contract Value by a life expectancy factor from tables designated
by the Internal Revenue Service. The factor will be based on either your life
expectancy or the joint life expectancy of you and your spouse and will be
redetermined for each year's distribution. The Contract Value to be used in this
calculation is your Contract Value on the December 31 before the year in which
the EMO payment is being made. This calculation will be changed, if necessary,
to conform to changes in the Internal Revenue Code or applicable regulations.
Flexible Payment Option ("FPO")
FPO payments are available on a monthly, quarterly, semiannual or annual basis.
You specify the initial distribution date. Subsequent distributions will be made
on the 15th of any month (or the next Valuation Date if the 15th is not a
Valuation Date) or another date we may designate or allow.
You may elect one of two methods of distribution for payments from Variable
Sub-Accounts:
o Specified Payment - payments of a designated dollar amount. The
dollar amount chosen must be greater than or equal to the minimum
distribution amount allowed by the Internal Revenue Code and
applicable regulations. Your Contract Value on December 31 before the
year for which the payment is being made will be used in this
calculation. Payments will stop on the earlier of:
o the date the amount you elected to be paid has been reduced to zero, or
o your Contract Value is zero.
o Specified Period - payments for a designated time period. The annual
distribution amount must be greater than or equal to the minimum
distribution amount required by the Internal Revenue Code and applicable
regulations. Each annual distribution is determined by dividing your
Contract Value by the number of years remaining in the elected period. Your
Contract Value on December 31 before the year for which the payment is
being made will be used in this calculation. For payments made more often
than annually, the annual payment result (calculated above) is divided by
the number of payments due each year. The specified period must be at least
three years, but not greater than the Annuitant's life expectancy factor.
Payments will stop on the earlier of:
o the date the amount you elected to be paid has been reduced to zero, or
o your Contract Value is zero.
For purposes of determining the amount to be distributed under each of these
distribution methods, life expectancy will be recalculated annually based on
Section 401(a)(9) of the Internal Revenue Code or applicable regulations.
Federal Tax Consequences
The ultimate effect of federal income taxes on your Contract Value, on annuity
payments and on the economic benefit to you, the beneficiary or other payee
depends on GWL&A's tax status, and upon the tax and employment status of the
individual concerned. The discussion which follows is general in nature and is
not intended as tax advice. No representation is made regarding the likelihood
of the continuation of present federal income tax law or of the current
interpretations of the Internal Revenue Service. No discussion of state or other
tax laws is provided. FOR FURTHER INFORMATION, CONSULT A QUALIFIED TAX ADVISER.
Taxation of GWL&A
GWL&A is taxed on its insurance business in the United States as a life
insurance company in accordance with Part I of Subchapter L of the Internal
Revenue Code. The Series Account is taxed as a part of GWL&A; not as a
"regulated investment company" under Part I of Subchapter M of the Code.
Investment income and realized capital gains on the assets of the Series Account
are reinvested and are taken into account in determining the Contract Value.
Under existing federal income tax law, such amounts do not generally result in
any tax to GWL&A which will be chargeable to the Contract Owner or the Series
Account. GWL&A reserves the right to make a deduction from your account balance
for taxes, if any, imposed with respect to such items in the future.
Individual Retirement Annuities (IRAs)
In general, set forth below are some comments concerning the federal income
taxation of IRAs under Sections 72 and 408 of the Internal Revenue Code. It
should be understood that the following discussion is not exhaustive, and that
special rules may apply to certain situations not discussed here. You and your
beneficiaries are responsible for determining that Contributions, distributions
and other transactions with respect to the Contract comply with applicable laws.
To qualify as an IRA under Section 408 of the Internal Revenue Code, the
Annuitant must at all times be the owner of the Contract. Your entire interest
is nonforfeitable and nontransferable. Contributions may not exceed the
limitations allowable under the Internal Revenue Code. You may not borrow from
the Contract or pledge the annuity or any portion of it as security for a loan.
If you borrow money under the Contract, including a policy loan, the Contract
ceases to qualify as an IRA as of the first day of the year, and the fair market
value of the Contract is includable in your gross income for the year. If you
pledge any portion of the Contract as security for a loan, that portion is
deemed distributed on the first day of the year in which the pledge was made and
is includible in your gross income.
Generally, a Contract Owner who is a natural person is not taxed on increases
(if any) in the value of the Contract until a distribution. Internal Revenue
Code Section 408(d)(1) provides that distributions from IRAs, including total or
partial withdrawals and annuity payments, are generally taxed for federal income
tax purposes under Code Section 72. Under these rules, a portion of the
distribution may be excludable from income if any nondeductible contributions
were made. However, if the initial Contribution to this IRA was entirely from
pre-tax contributions to a qualified plan, the entire amount distributed
generally will be taxable to the Contract Owner as ordinary income in the year
distributed. There is no special averaging treatment for lump sum distributions.
Rollovers
Generally, you may receive a distribution of any amount from an IRA and within
60 days roll that amount, or any part of it, over into any other IRA. Amounts
properly rolled over will not be included in gross income until a distribution
is taken from the new IRA. Only one rollover from a particular IRA to any other
IRA may be made in any one-year period. Certain other restrictions apply.
You may receive a distribution from an IRA and within 60 days roll it over into
a qualified plan, only if all the funds in the IRA are attributable to a
previous rollover distribution from a qualified plan. Similarly, you may receive
a distribution from an IRA and within 60 days roll it over into a plan described
under Section 403(b) of the Internal Revenue Code, only if all the funds in the
IRA are attributable to a previous rollover distribution from such a plan. If
you mix a rollover contribution from a qualified plan with other contributions
or funds from other sources, the right to roll it back into a qualified plan is
forfeited.
Required Beginning Date/Minimum Distribution Requirements
Your entire interest in the Contract typically must be distributed, or begin to
be distributed, by April 1 following the year in which you reach age 70 1/2.
Required distributions must be made over a period not exceeding your life
expectancy or the joint lives of you and your designated beneficiary. If the
amount distributed does not meet the minimum distribution and incidental death
benefit requirements of Internal Revenue Code Section 401(a)(9) and the
regulations thereunder, a 50% penalty tax on the amount which was required to
be, but was not, distributed may be imposed on you.
Premature Withdrawals
Distributions made before you reach age 59 1/2 are premature distributions and
ordinarily are subject to an additional tax equal to 10% of the amount of the
distributions which is includable in gross income in the tax year. However, the
penalty tax will not apply to distributions that are:
o made to a beneficiary or your estate on or after your death,
o attributable to you being disabled within the meaning of code Section
72(m)(7), or
o made as a part of a series of substantially equal periodic payments (at
least annually) for your life or life expectancy or the joint lives or life
expectancies of you and your designated beneficiary.
If the last exemption above applies at the time of the distribution but the
series of payments is later modified or discontinued (other than because of
death or disability), before you reach age 59 1/2 or, within five years of the
date of the first payment, whichever is later, you are liable for the 10%
penalty plus interest on all payments received before age 59 1/2. This penalty
is imposed in the year the modification or discontinuance occurs.
Other exemptions may apply. For more details, consult a qualified tax adviser.
Distributions on Death of Contract Owner
If you die on or after the date annuity payments start, and before the entire
interest in the Contract has been distributed, the remainder of your interest
will be distributed on the same or on a more rapid schedule than that provided
for in the method in effect on the date of death.
If you die before the date annuity payments start, your entire interest must
generally be distributed within five years after the date of your death. If
payable to a designated beneficiary, the distributions may be paid over the life
of that designated beneficiary or over a period not extending beyond the life
expectancy of that beneficiary, so long as payments start within one year of
your death. If the sole designated beneficiary is your spouse, the Contract may
be continued in the name of the spouse as Contract Owner.
A surviving spouse, who is your beneficiary, may elect to treat the entire
annuity as his or her own IRA regardless of whether distributions had begun to
you or have begun to the surviving spouse. As the new Contract Owner, the
surviving spouse may make contributions to the IRA and make rollovers from it.
Such an election is deemed made if any amounts required to be distributed on
your death under these rules have not been distributed or any additional amounts
are contributed to the annuity.
Federal Income Tax Withholding on Distributions
Taxable distributions from an IRA are generally subject to income tax
withholding in the following manner:
o If the distribution is in the form of an annuity or similar periodic
payments, amounts are withheld as though each distribution were a payment of
wages.
o In the case of any other kind of distribution, a flat 10% will be withheld,
unless the recipient elects not to have the tax withheld.
<PAGE>
Performance Related Information
From time to time, the Series Account may advertise certain performance related
information concerning its Investment Divisions. Performance information about
an Investment Division is based on the Investment Division's historical
performance only and is not intended to indicate future performance. Below are
tables of performance related information for each of the four levels of the
Mortality and Expense Risk Charge that may be assessed under the Contracts. For
the "Inception Date" of a particular Investment Division see the "Total Return"
tables below.
<TABLE>
- --------------------------------- ------------------------------- -------------------------------
<S> <C> <C> <C> <C> <C> <C>
Investment Division Yield Effective Yield
- --------------------------------- ------------------------------- -------------------------------
- --------------------------------- ------------------------------- -------------------------------
Money Market a*
- --------------------------------- ------------------------------- -------------------------------
- --------------------------------- ------------------------------- -------------------------------
Money Market o*
- --------------------------------- ------------------------------- -------------------------------
- --------------------------------- ------------------------------- -------------------------------
Money Market u*
- --------------------------------- ------------------------------- -------------------------------
- --------------------------------- ------------------------------- -------------------------------
Money Market z*
- --------------------------------- ------------------------------- -------------------------------
Yield and effective Yield for the Money Market Investment Division is for the
7-day period ended December 31, 1998. Yield calculations take into account
recurring charges against the Series Account and the Money Market Portfolio. All
yield and effective yield information is annualized.
Total Return
- ---------------------------- ------------------ ------------------- ------------------- -------------------
Investment Divisions a* Date of Inception 1 Year Cumulative Total Average Annual
Return Since Total Return
Inception Since Inception
- ---------------------------- ------------------ ------------------- ------------------- -------------------
- ---------------------------- ------------------ ------------------- ------------------- -------------------
Foreign Equity June 23, 1995
- ---------------------------- ------------------ ------------------- ------------------- -------------------
- ---------------------------- ------------------ ------------------- ------------------- -------------------
Small-Cap Index June 20, 1995
- ---------------------------- ------------------ ------------------- ------------------- -------------------
- ---------------------------- ------------------ ------------------- ------------------- -------------------
Growth Index August 9, 1995
- ---------------------------- ------------------ ------------------- ------------------- -------------------
- ---------------------------- ------------------ ------------------- ------------------- -------------------
Small-Cap Aggressive Growth
August 9, 1995
- ---------------------------- ------------------ ------------------- ------------------- -------------------
- ---------------------------- ------------------ ------------------- ------------------- -------------------
Stock Index June 20, 1995
- ---------------------------- ------------------ ------------------- ------------------- -------------------
- ---------------------------- ------------------ ------------------- ------------------- -------------------
Small-Cap Value August 9, 1995
- ---------------------------- ------------------ ------------------- ------------------- -------------------
- ---------------------------- ------------------ ------------------- ------------------- -------------------
Blue Chip June 30, 1997
- ---------------------------- ------------------ ------------------- ------------------- -------------------
- ---------------------------- ------------------ ------------------- ------------------- -------------------
Value Index August 9, 1995
- ---------------------------- ------------------ ------------------- ------------------- -------------------
- ---------------------------- ------------------ ------------------- ------------------- -------------------
U.S. Government Mortgage
Securities August 9, 1995
- ---------------------------- ------------------ ------------------- ------------------- -------------------
- ---------------------------- ------------------ ------------------- ------------------- -------------------
Investment Grade Corporate
Bond August 9, 1995
- ---------------------------- ------------------ ------------------- ------------------- -------------------
- ---------------------------- ------------------ ------------------- ------------------- -------------------
Corporate Bond August 9, 1995
- ---------------------------- ------------------ ------------------- ------------------- -------------------
- ---------------------------- ------------------ ------------------- ------------------- -------------------
Short-Term Maturity Bond April 1, 1996
- ---------------------------- ------------------ ------------------- ------------------- -------------------
- ---------------------------- ------------------ ------------------- ------------------- -------------------
Money Market July 5, 1995
- ---------------------------- ------------------ ------------------- ------------------- -------------------
- ---------------------------- ------------------ ------------------- ------------------- -------------------
MidCap Growth June 30, 1997
- ---------------------------- ------------------ ------------------- ------------------- -------------------
- ---------------------------- ------------------ ------------------- ------------------- -------------------
Investment Divisions o* Date of Inception 1 Year Cumulative Total Average Annual
Return Since Total Return
Inception Since Inception
- ---------------------------- ------------------ ------------------- ------------------- -------------------
- ---------------------------- ------------------ ------------------- ------------------- -------------------
Foreign Equity July 24, 1995
- ---------------------------- ------------------ ------------------- ------------------- -------------------
- ---------------------------- ------------------ ------------------- ------------------- -------------------
Small-Cap Index July 24, 1995
- ---------------------------- ------------------ ------------------- ------------------- -------------------
- ---------------------------- ------------------ ------------------- ------------------- -------------------
Growth Index July 24, 1995
- ---------------------------- ------------------ ------------------- ------------------- -------------------
- ---------------------------- ------------------ ------------------- ------------------- -------------------
Small-Cap Aggressive Growth
August 3, 1995
- ---------------------------- ------------------ ------------------- ------------------- -------------------
- ---------------------------- ------------------ ------------------- ------------------- -------------------
Stock Index July 24, 1995
- ---------------------------- ------------------ ------------------- ------------------- -------------------
- ---------------------------- ------------------ ------------------- ------------------- -------------------
Small-Cap Value July 24, 1995
- ---------------------------- ------------------ ------------------- ------------------- -------------------
- ---------------------------- ------------------ ------------------- ------------------- -------------------
Blue Chip June 30, 1997
- ---------------------------- ------------------ ------------------- ------------------- -------------------
- ---------------------------- ------------------ ------------------- ------------------- -------------------
Value Index July 24, 1995
- ---------------------------- ------------------ ------------------- ------------------- -------------------
- ---------------------------- ------------------ ------------------- ------------------- -------------------
U.S. Government Mortgage
Securities July 24, 1995
- ---------------------------- ------------------ ------------------- ------------------- -------------------
- ---------------------------- ------------------ ------------------- ------------------- -------------------
Investment Grade Corporate
Bond July 24, 1995
- ---------------------------- ------------------ ------------------- ------------------- -------------------
- ---------------------------- ------------------ ------------------- ------------------- -------------------
Corporate Bond July 24, 1995
- ---------------------------- ------------------ ------------------- ------------------- -------------------
- ---------------------------- ------------------ ------------------- ------------------- -------------------
Short-Term Maturity Bond March 13, 1996
- ---------------------------- ------------------ ------------------- ------------------- -------------------
- ---------------------------- ------------------ ------------------- ------------------- -------------------
Money Market November 30, 1995
- ---------------------------- ------------------ ------------------- ------------------- -------------------
- ---------------------------- ------------------ ------------------- ------------------- -------------------
MidCap Growth June 30, 1997
- ---------------------------- ------------------ ------------------- ------------------- -------------------
<PAGE>
- ---------------------------- ------------------ ------------------- ------------------- -------------------
Investment Divisions u* Date of Inception 1 Year Cumulative Total Average Annual
Return Since Total Return
Inception Since Inception
- ---------------------------- ------------------ ------------------- ------------------- -------------------
- ---------------------------- ------------------ ------------------- ------------------- -------------------
Foreign Equity October 3, 1995
- ---------------------------- ------------------ ------------------- ------------------- -------------------
- ---------------------------- ------------------ ------------------- ------------------- -------------------
Small-Cap Index September 8, 1995
- ---------------------------- ------------------ ------------------- ------------------- -------------------
- ---------------------------- ------------------ ------------------- ------------------- -------------------
Growth Index September 8, 1995
- ---------------------------- ------------------ ------------------- ------------------- -------------------
- ---------------------------- ------------------ ------------------- ------------------- -------------------
Small-Cap Aggressive Growth
November 17, 1995
- ---------------------------- ------------------ ------------------- ------------------- -------------------
- ---------------------------- ------------------ ------------------- ------------------- -------------------
Stock Index July 12, 1995
- ---------------------------- ------------------ ------------------- ------------------- -------------------
- ---------------------------- ------------------ ------------------- ------------------- -------------------
Small-Cap Value July 12, 1995
- ---------------------------- ------------------ ------------------- ------------------- -------------------
- ---------------------------- ------------------ ------------------- ------------------- -------------------
Blue Chip June 30, 1997
- ---------------------------- ------------------ ------------------- ------------------- -------------------
- ---------------------------- ------------------ ------------------- ------------------- -------------------
Value Index July 12, 1995
- ---------------------------- ------------------ ------------------- ------------------- -------------------
- ---------------------------- ------------------ ------------------- ------------------- -------------------
U.S. Government Mortgage
Securities July 12, 1995
- ---------------------------- ------------------ ------------------- ------------------- -------------------
- ---------------------------- ------------------ ------------------- ------------------- -------------------
Investment Grade Corporate
Bond September 19,
1995
- ---------------------------- ------------------ ------------------- ------------------- -------------------
- ---------------------------- ------------------ ------------------- ------------------- -------------------
Corporate Bond September 19,
1995
- ---------------------------- ------------------ ------------------- ------------------- -------------------
- ---------------------------- ------------------ ------------------- ------------------- -------------------
Short Term Maturity Bond March 11, 1995
- ---------------------------- ------------------ ------------------- ------------------- -------------------
- ---------------------------- ------------------ ------------------- ------------------- -------------------
Money Market November 16, 1995
- ---------------------------- ------------------ ------------------- ------------------- -------------------
- ---------------------------- ------------------ ------------------- ------------------- -------------------
MidCap Growth June 30, 1997
- ---------------------------- ------------------ ------------------- ------------------- -------------------
- ---------------------------- ------------------ ------------------- ------------------- -------------------
Investment Divisions z* Date of Inception 1 Year Cumulative Total Annual Total
Return Since Return Since
Inception Inception
- ---------------------------- ------------------ ------------------- ------------------- -------------------
- ---------------------------- ------------------ ------------------- ------------------- -------------------
Foreign Equity October 4, 1995
- ---------------------------- ------------------ ------------------- ------------------- -------------------
- ---------------------------- ------------------ ------------------- ------------------- -------------------
Small-Cap Index August 9, 1995
- ---------------------------- ------------------ ------------------- ------------------- -------------------
- ---------------------------- ------------------ ------------------- ------------------- -------------------
Growth Index July 26, 1995
- ---------------------------- ------------------ ------------------- ------------------- -------------------
- ---------------------------- ------------------ ------------------- ------------------- -------------------
Small-Cap Aggressive Growth
August 3, 1995
- ---------------------------- ------------------ ------------------- ------------------- -------------------
- ---------------------------- ------------------ ------------------- ------------------- -------------------
Stock Index August 9, 1995
- ---------------------------- ------------------ ------------------- ------------------- -------------------
- ---------------------------- ------------------ ------------------- ------------------- -------------------
Small-Cap Value August 3, 1995
- ---------------------------- ------------------ ------------------- ------------------- -------------------
- ---------------------------- ------------------ ------------------- ------------------- -------------------
Blue Chip June 30, 1997
- ---------------------------- ------------------ ------------------- ------------------- -------------------
- ---------------------------- ------------------ ------------------- ------------------- -------------------
Value Index August 13, 1995
- ---------------------------- ------------------ ------------------- ------------------- -------------------
- ---------------------------- ------------------ ------------------- ------------------- -------------------
U.S. Government Mortgage
Securities July 26, 1995
- ---------------------------- ------------------ ------------------- ------------------- -------------------
- ---------------------------- ------------------ ------------------- ------------------- -------------------
Investment Grade Corporate
Bond July 26, 1995
- ---------------------------- ------------------ ------------------- ------------------- -------------------
- ---------------------------- ------------------ ------------------- ------------------- -------------------
Corporate Bond July 26, 1995
- ---------------------------- ------------------ ------------------- ------------------- -------------------
- ---------------------------- ------------------ ------------------- ------------------- -------------------
Short Term Maturity Bond August 16, 1996
- ---------------------------- ------------------ ------------------- ------------------- -------------------
- ---------------------------- ------------------ ------------------- ------------------- -------------------
Money Market July 5, 1995
- ---------------------------- ------------------ ------------------- ------------------- -------------------
- ---------------------------- ------------------ ------------------- ------------------- -------------------
MidCap Growth June 30, 1997
- ---------------------------- ------------------ ------------------- ------------------- -------------------
- -----------
</TABLE>
Mortality & Expense Risk Charge Contract Value
a* = 0.75% $0 - $9,999.99
o* = 0.50% $10,000 - $24,999.99
u* = 0.25% $25,000 - $49,999.99
z* = 0.00% $50,000 and greater
The Series Account may include performance information about the Investment
Divisions in advertisements or other sales material.
When we advertise the total return of one of these Investment Divisions, it will
be shown as average annual total return for one year, five years, and ten years
or since its inception if the Investment Division has not been in existence for
at least ten years. Average annual total return is measured by comparing the
value of an investment in the Investment Division at the beginning of the
relevant period to the value of the investment at the end of the period
(assuming immediate reinvestment of any dividends or capital gains
distributions). In calculating average annual total return, it is assumed that
the entire value of the Investment Division will be distributed on the last day
of the period. In addition to average annual total return, we may also advertise
cumulative total return, year-by-year total return or total return of the
Eligible Funds prior to their availability in the Series Account.
For the Money Market Investment Division, "yield" means the income generated by
an investment in the Money Market Investment Division over a certain seven-day
period. This income is then "annualized." That is, the amount of income
generated by the investment during that week is assumed to be generated each
week over a 52-week period and is shown as a percentage of the investment. The
"effective yield" of the Money Market Investment Division is calculated
similarly but, when annualized, the income earned by an investment in the Money
Market Investment Division is assumed to be reinvested. The "effective yield"
will be slightly higher than the "yield" because of the compounding effect of
this assumed reinvestment.
The yield and effective yield calculations for the Money Market Investment
Division include all recurring charges under the Contract, and is lower than
yield and effective yield of the corresponding Money Market Portfolio, which
does not have comparable Contract charges. Total return for the Investment
Divisions include all charges under your Contract, and likewise, is lower than
total return of the corresponding Eligible Funds which have no comparable
Contract charges.
For more complete information on the method used to calculate yield, effective
yields, and total return of the respective Investment Divisions, see the
"Statement of Additional Information."
Voting Rights
To the extent required by applicable law, GWL&A will vote the shares of the
Eligible Funds held by the Investment Divisions of the Series Account at regular
and special meetings of shareholders of the Fund in accordance with instructions
received from Contract Owners. If, however, the Investment Company Act of 1940
or any regulation should be amended, or if the present interpretation of that
Act should change, or if we determine that we are allowed to vote all Eligible
Fund shares in our own right, we may elect to do so.
Before the Annuity Commencement Date, you have the voting interest relating to
the Eligible Fund shares attributable to your Variable Sub-Account. After
annuity payments begin under a variable annuity option, the payee will have the
voting interest.
The number of votes which you have the right to cast will be determined by
applying your percentage interest in an Investment Division to the total number
of votes attributable to that Investment Division. In determining the number of
votes, fractional shares will be recognized. During the annuity payment period,
the number of votes attributable to your Contract will decrease as the assets
held to fund the annuity payments decrease.
Shares for which we do not receive timely instructions and shares held by us as
to which Contract Owners have no beneficial interest will be voted in the same
proportion as the voting instructions which have been received. Voting
instructions to abstain on any item to be voted upon will be applied on a pro
rata basis to reduce the votes eligible to be cast.
Each person having a voting interest will receive proxy materials, reports and
other materials relating to the applicable underlying portfolio of the Fund.
Distribution of the Contracts
One Orchard Equities, Inc. ("One Orchard"), 8515 East Orchard Road, Englewood,
Colorado 80111, is the principal underwriter and the distributor of the
Contracts. One Orchard is registered with the Securities and Exchange Commission
under the Securities and Exchange Act of 1934 as a broker-dealer and is a member
of the National Association of Securities Dealers, Inc. Applications for the
Contracts will be solicited by duly-licensed insurance agents of GWL&A who are
registered with One Orchard. One Orchard is an affiliate of Great-West.
No commissions will be paid to any person for the sale of Contracts.
Amendment of Contracts
We reserve the right to amend the Contract without the consent of any person in
order to meet the requirements of the Investment Company Act of 1940 or other
applicable federal or state laws or regulations, or to modify the annuity rates
for future Contributions. We will notify you of any such changes.
Ownership
The Contract Owner has all rights under the Contract. By law, the assets of the
Series Account are held for the exclusive benefit of the Contract Owners and
their designated beneficiaries. These assets cannot be charged with liabilities
that arise out of any other business we may conduct.
State Regulation
As a life insurance company organized and operated under Colorado law, we are
subject to provisions governing such companies and to regulation by the Colorado
Commissioner of Insurance.
Our books and accounts are subject to review and examination by the Colorado
Division of Insurance at all times and a full examination of our operations is
conducted by the National Association of Insurance Commissioners at least once
every three years.
Reports
We will furnish to you semi-annual and annual reports concerning the operations
of the Investment Divisions. In addition, you will be furnished not less
frequently than annually a statement of your Contract Value.
Year 2000
We have a number of existing computer programs that use only two digits to
identify a year in the date field, which creates a problem with the upcoming
change in the century. We have developed detailed plans that we expect to
rectify the year 2000 problem. These plans include modifying programs where
necessary, replacing certain programs with year 2000 compliant software, and
working with vendors and business partners, including banks, custodians and
investment managers, who need to become year 2000 compliant. The resources that
are being devoted to this effort are substantial. Management estimates that the
total cost to implement these plans will not be material, and has budgeted the
expense as part of its computer systems operating costs in 1998 and early 1999.
We anticipate that our systems will be year 2000 compliant on or about first
quarter 1999, but there can be no assurance that we will be successful, or that
interaction with other service providers will not impair our services at that
time.
Rights Reserved by Great-West
We reserve the right to make certain changes we feel would best serve the
interests of Contract Owners and Annuitants or would be appropriate in carrying
out the purposes of the Contracts. Any changes will be made only to the extent
and in the manner permitted by applicable laws. Also, when required by law, we
will obtain your approval of the changes and approval from any appropriate
regulatory authority. Approval may not be required in all cases, however.
Examples of the changes we may make include:
o To operate the Series Account in any form permitted under the Investment
Company Act of 1940 or in any other form permitted by law.
o To transfer any assets in any Investment Division to another Investment
Division, or to one or more separate accounts; or to add, combine or remove
Investment Divisions of the Series Account.
o To substitute, for the Eligible Fund shares in any Investment Division, the
shares of another Eligible Fund or shares of another investment company or
any other investment permitted by law.
o To make any changes required by the Internal Revenue Code or by any other
applicable law in order to continue treatment of the Contract as an annuity.
o To change the time or time of day at which a Valuation Date is deemed to
have ended.
o To make any other necessary technical changes in the Contract in order to
conform with any action the above provisions permit us to take, including
changing the way we assess charges, without increasing them for any
outstanding Contract beyond the aggregate amount guaranteed.
Adding and Discontinuing Investment Options
We may, upon 30 days written notice to you, direct that you may not make any
future Contributions or Transfers to a particular Investment Division.
When we inform you that we are discontinuing an Investment Division to which you
are allocating money, we will ask that you promptly submit alternative
allocation instructions. If we do not receive your changed allocation
instructions, we may return all affected Contributions or allocate those
Contributions as indicated in the written notice provided to you. Contributions
and Transfers you make to a discontinued Investment Division before the
effective date of the notice may be kept in those Investment Divisions, unless
we receive an order from the Securities and Exchange Commission permitting us to
substitute shares of a mutual fund for shares of the corresponding Eligible
Fund.
In addition, we may discontinue all investment options under the Contracts and
refuse to accept any new Contributions. If we determine to make new investment
options available under the Contracts, in our sole discretion, we may or may not
make those options available to you.
Substitution of Investments
Where we determine to discontinue an Investment Division, in our sole
discretion, we may substitute shares of another mutual fund for the shares of
the discontinued Eligible Fund. No substitution may take place without prior
approval of the Securities and Exchange Commission, and prior notice to you.
Legal Matters
The organization of GWL&A, its authority to issue variable annuity contracts and
the validity of the Contracts have been passed upon by R.B. Lurie, Vice
President, Counsel and Associate Secretary of GWL&A. Certain legal matters
relating to the federal securities laws have been passed upon for GWL&A by
Jorden Burt Boros Cicchetti Berenson & Johnson LLP.
Registration Statement
We have filed a registration statement ("Registration Statement") with the
Securities and Exchange Commission under the Securities Act of 1933 relating to
the Contracts offered by this prospectus. This prospectus has been filed as part
of the Registration Statement and does not contain all of the information set
forth in the Registration Statement and exhibits thereto. Reference is made to
the Registration Statement and exhibits for further information relating to us
and the Contracts. Statements contained in this prospectus, as to the content of
the Contracts and other legal instruments, are summaries. For a complete
statement of the terms thereof, reference is made to the instruments as filed as
exhibits to the Registration Statement. The Registration Statement and its
exhibits may be inspected and copied at the offices of the Securities and
Exchange Commission located at 450 Fifth Street, N.W., Washington, D.C.
Statement of Additional Information
The Statement of Additional Information contains more specific information and
financial statements relating to the Series Account and GWL&A. The Table of
Contents of the Statement of Additional Information is set forth below:
1. Custodian and Independent Auditors
2. Underwriter
3. Calculation of Performance Data
4. Financial Statements
Inquiries and requests for a Statement of Additional Information should be
directed to GWL&A in writing at 8515 E. Orchard Road, Englewood, Colorado 80111,
or by telephoning GWL&A at (800) 338-4015.
<PAGE>
Appendix A
APPENDIX A
Condensed Financial Information
Selected Data for Accumulation Units
Outstanding Throughout Each Period
For the Years Ended December 31
<TABLE>
MONEY MARKET INVESTMENT DIVISION
- ----------------------- --------------------------------------- ----------------------------------------
1998 By Category 1997 By Category
- ----------------------- --------------------------------------- ----------------------------------------
- ----------------------- --------- --------- -------- ---------- --------- --------- --------- ----------
A O U Z A O U Z
<S> <C> <C> <C> <C> <C> <C>
- ----------------------- --------- --------- -------- ---------- --------- --------- --------- ----------
- ----------------------- --------- --------- -------- ---------- --------- --------- --------- ----------
Value at beginning of
period
- ----------------------- --------- --------- -------- ---------- --------- --------- --------- ----------
- ----------------------- --------- --------- -------- ---------- --------- --------- --------- ----------
Value at end of period
- ----------------------- --------- --------- -------- ---------- --------- --------- --------- ----------
- ----------------------- --------- --------- -------- ---------- --------- --------- --------- ----------
Increase (decrease)
in value of
Accumulation Units
- ----------------------- --------- --------- -------- ---------- --------- --------- --------- ----------
- ----------------------- --------- --------- -------- ---------- --------- --------- --------- ----------
Number of
Accumulation Units
outstanding at end of
period
- ----------------------- --------- --------- -------- ---------- --------- --------- --------- ----------
- ----------------------- --------------------------------------- ----------------------------------------
1996 By Category 1995 By Category
- ----------------------- --------------------------------------- ----------------------------------------
- ----------------------- --------- --------- -------- ---------- --------- --------- --------- ----------
A O U Z A*(3) O*(15) U*(15) Z*(3)
- ----------------------- --------- --------- -------- ---------- --------- --------- --------- ----------
- ----------------------- --------- --------- -------- ---------- --------- --------- --------- ----------
Value at beginning of
period
- ----------------------- --------- --------- -------- ---------- --------- --------- --------- ----------
- ----------------------- --------- --------- -------- ---------- --------- --------- --------- ----------
Value at end of period
- ----------------------- --------- --------- -------- ---------- --------- --------- --------- ----------
- ----------------------- --------- --------- -------- ---------- --------- --------- --------- ----------
Increase (decrease)
in value of
Accumulation Units
- ----------------------- --------- --------- -------- ---------- --------- --------- --------- ----------
- ----------------------- --------- --------- -------- ---------- --------- --------- --------- ----------
Number of
Accumulation Units
outstanding at end of
period
- ----------------------- --------- --------- -------- ---------- --------- --------- --------- ----------
<PAGE>
INVESTMENT GRADE CORPORATE BOND INVESTMENT DIVISION
- ------------------------ -------------------------------------- ----------------------------------------
1998 By Category 1997 By Category
- ------------------------ -------------------------------------- ----------------------------------------
- ------------------------ -------- --------- --------- -------- --------- --------- ---------- ----------
A O U Z A O U Z
- ------------------------ -------- --------- --------- -------- --------- --------- ---------- ----------
- ------------------------ -------- --------- --------- -------- --------- --------- ---------- ----------
Value at beginning of
period
- ------------------------ -------- --------- --------- -------- --------- --------- ---------- ----------
- ------------------------ -------- --------- --------- -------- --------- --------- ---------- ----------
Value at end of period
- ------------------------ -------- --------- --------- -------- --------- --------- ---------- ----------
- ------------------------ -------- --------- --------- -------- --------- --------- ---------- ----------
Increase (decrease) in
value of Accumulation
Units
- ------------------------ -------- --------- --------- -------- --------- --------- ---------- ----------
- ------------------------ -------- --------- --------- -------- --------- --------- ---------- ----------
Number of Accumulation
Units outstanding at
end of period
- ------------------------ -------- --------- --------- -------- --------- --------- ---------- ----------
- ------------------------ -------------------------------------- ----------------------------------------
1996 By Category 1995 By Category
- ------------------------ -------------------------------------- ----------------------------------------
- ------------------------ -------- --------- --------- -------- --------- --------- ---------- ----------
A O U Z A*(8) O*(5) U*(11) Z*(6)
- ------------------------ -------- --------- --------- -------- --------- --------- ---------- ----------
- ------------------------ -------- --------- --------- -------- --------- --------- ---------- ----------
Value at beginning of
period
- ------------------------ -------- --------- --------- -------- --------- --------- ---------- ----------
- ------------------------ -------- --------- --------- -------- --------- --------- ---------- ----------
Value at end of period
- ------------------------ -------- --------- --------- -------- --------- --------- ---------- ----------
- ------------------------ -------- --------- --------- -------- --------- --------- ---------- ----------
Increase (decrease) in
value of Accumulation
Units
- ------------------------ -------- --------- --------- -------- --------- --------- ---------- ----------
- ------------------------ -------- --------- --------- -------- --------- --------- ---------- ----------
Number of Accumulation
Units outstanding at
end of period
- ------------------------ -------- --------- --------- -------- --------- --------- ---------- ----------
<PAGE>
STOCK INDEX INVESTMENT DIVISION
- ------------------------ -------------------------------------- ----------------------------------------
1998 By Category 1997 By Category
- ------------------------ -------------------------------------- ----------------------------------------
- ------------------------ -------- --------- --------- -------- --------- --------- ---------- ----------
A O U Z A O U Z
- ------------------------ -------- --------- --------- -------- --------- --------- ---------- ----------
- ------------------------ -------- --------- --------- -------- --------- --------- ---------- ----------
Value at beginning of
period
- ------------------------ -------- --------- --------- -------- --------- --------- ---------- ----------
- ------------------------ -------- --------- --------- -------- --------- --------- ---------- ----------
Value at end of period
- ------------------------ -------- --------- --------- -------- --------- --------- ---------- ----------
- ------------------------ -------- --------- --------- -------- --------- --------- ---------- ----------
Increase (decrease) in
value of Accumulation
Units
- ------------------------ -------- --------- --------- -------- --------- --------- ---------- ----------
- ------------------------ -------- --------- --------- -------- --------- --------- ---------- ----------
Number of Accumulation
Units outstanding at
end of period
- ------------------------ -------- --------- --------- -------- --------- --------- ---------- ----------
- ------------------------ -------------------------------------- ----------------------------------------
1996 By Category 1995 By Category
- ------------------------ -------------------------------------- ----------------------------------------
- ------------------------ -------- --------- --------- -------- --------- --------- ---------- ----------
A O U Z A*(1) O*(5) U*(4) Z *(8)
- ------------------------ -------- --------- --------- -------- --------- --------- ---------- ----------
- ------------------------ -------- --------- --------- -------- --------- --------- ---------- ----------
Value at beginning of
period
- ------------------------ -------- --------- --------- -------- --------- --------- ---------- ----------
- ------------------------ -------- --------- --------- -------- --------- --------- ---------- ----------
Value at end of period
- ------------------------ -------- --------- --------- -------- --------- --------- ---------- ----------
- ------------------------ -------- --------- --------- -------- --------- --------- ---------- ----------
Increase (decrease) in
value of Accumulation
Units
- ------------------------ -------- --------- --------- -------- --------- --------- ---------- ----------
- ------------------------ -------- --------- --------- -------- --------- --------- ---------- ----------
Number of Accumulation
Units outstanding at
end of period
- ------------------------ -------- --------- --------- -------- --------- --------- ---------- ----------
<PAGE>
U.S. GOVERNMENT MORTGAGE SECURITIES INVESTMENT DIVISION
- ------------------------ -------------------------------------- ----------------------------------------
1998 By Category 1997 By Category
- ------------------------ -------------------------------------- ----------------------------------------
- ------------------------ -------- --------- --------- -------- --------- --------- ---------- ----------
A O U Z A O U Z
- ------------------------ -------- --------- --------- -------- --------- --------- ---------- ----------
- ------------------------ -------- --------- --------- -------- --------- --------- ---------- ----------
Value at beginning of
period
- ------------------------ -------- --------- --------- -------- --------- --------- ---------- ----------
- ------------------------ -------- --------- --------- -------- --------- --------- ---------- ----------
Value at end of period
- ------------------------ -------- --------- --------- -------- --------- --------- ---------- ----------
- ------------------------ -------- --------- --------- -------- --------- --------- ---------- ----------
Increase (decrease) in
value of Accumulation
Units
- ------------------------ -------- --------- --------- -------- --------- --------- ---------- ----------
- ------------------------ -------- --------- --------- -------- --------- --------- ---------- ----------
Number of Accumulation
Units outstanding at
end of period
- ------------------------ -------- --------- --------- -------- --------- --------- ---------- ----------
- ------------------------ -------------------------------------- ----------------------------------------
1996 By Category 1995 By Category
- ------------------------ -------------------------------------- ----------------------------------------
- ------------------------ -------- --------- --------- -------- --------- --------- ---------- ----------
A O U Z A*(8) O*(5) U*(4) Z*(6)
- ------------------------ -------- --------- --------- -------- --------- --------- ---------- ----------
- ------------------------ -------- --------- --------- -------- --------- --------- ---------- ----------
Value at beginning of
period
- ------------------------ -------- --------- --------- -------- --------- --------- ---------- ----------
- ------------------------ -------- --------- --------- -------- --------- --------- ---------- ----------
Value at end of period
- ------------------------ -------- --------- --------- -------- --------- --------- ---------- ----------
- ------------------------ -------- --------- --------- -------- --------- --------- ---------- ----------
Increase (decrease) in
value of Accumulation
Units
- ------------------------ -------- --------- --------- -------- --------- --------- ---------- ----------
- ------------------------ -------- --------- --------- -------- --------- --------- ---------- ----------
Number of Accumulation
Units outstanding at
end of period
- ------------------------ -------- --------- --------- -------- --------- --------- ---------- ----------
<PAGE>
SMALL-CAP INDEX INVESTMENT DIVISION
- ------------------------ -------------------------------------- ----------------------------------------
1998 By Category 1997 By Category
- ------------------------ -------------------------------------- ----------------------------------------
- ------------------------ -------- --------- --------- -------- --------- --------- ---------- ----------
A O U Z A O U Z
- ------------------------ -------- --------- --------- -------- --------- --------- ---------- ----------
- ------------------------ -------- --------- --------- -------- --------- --------- ---------- ----------
Value at beginning of
period
- ------------------------ -------- --------- --------- -------- --------- --------- ---------- ----------
- ------------------------ -------- --------- --------- -------- --------- --------- ---------- ----------
Value at end of period
- ------------------------ -------- --------- --------- -------- --------- --------- ---------- ----------
- ------------------------ -------- --------- --------- -------- --------- --------- ---------- ----------
Increase (decrease) in
value of Accumulation
Units
- ------------------------ -------- --------- --------- -------- --------- --------- ---------- ----------
- ------------------------ -------- --------- --------- -------- --------- --------- ---------- ----------
Number of Accumulation
Units outstanding at
end of period
- ------------------------ -------- --------- --------- -------- --------- --------- ---------- ----------
- ------------------------ -------------------------------------- ----------------------------------------
1996 By Category 1995 By Category
- ------------------------ -------------------------------------- ----------------------------------------
- ------------------------ -------- --------- --------- -------- --------- --------- ---------- ----------
A O U Z A*(1) O*(5) U*(9) Z*(8)
- ------------------------ -------- --------- --------- -------- --------- --------- ---------- ----------
- ------------------------ -------- --------- --------- -------- --------- --------- ---------- ----------
Value at beginning of
period
- ------------------------ -------- --------- --------- -------- --------- --------- ---------- ----------
- ------------------------ -------- --------- --------- -------- --------- --------- ---------- ----------
Value at end of period
- ------------------------ -------- --------- --------- -------- --------- --------- ---------- ----------
- ------------------------ -------- --------- --------- -------- --------- --------- ---------- ----------
Increase (decrease) in
value of Accumulation
Units
- ------------------------ -------- --------- --------- -------- --------- --------- ---------- ----------
- ------------------------ -------- --------- --------- -------- --------- --------- ---------- ----------
Number of Accumulation
Units outstanding at
end of period
- ------------------------ -------- --------- --------- -------- --------- --------- ---------- ----------
<PAGE>
GROWTH INDEX INVESTMENT DIVISION
- ------------------------ -------------------------------------- ----------------------------------------
1998 By Category 1997 By Category
- ------------------------ -------------------------------------- ----------------------------------------
- ------------------------ -------- --------- --------- -------- --------- --------- ---------- ----------
A O U Z A O U Z
- ------------------------ -------- --------- --------- -------- --------- --------- ---------- ----------
- ------------------------ -------- --------- --------- -------- --------- --------- ---------- ----------
Value at beginning of
period
- ------------------------ -------- --------- --------- -------- --------- --------- ---------- ----------
- ------------------------ -------- --------- --------- -------- --------- --------- ---------- ----------
Value at end of period
- ------------------------ -------- --------- --------- -------- --------- --------- ---------- ----------
- ------------------------ -------- --------- --------- -------- --------- --------- ---------- ----------
Increase (decrease) in
value of Accumulation
Units
- ------------------------ -------- --------- --------- -------- --------- --------- ---------- ----------
- ------------------------ -------- --------- --------- -------- --------- --------- ---------- ----------
Number of Accumulation
Units outstanding at
end of period
- ------------------------ -------- --------- --------- -------- --------- --------- ---------- ----------
- ------------------------ -------------------------------------- ----------------------------------------
1996 By Category 1995 By Category
- ------------------------ -------------------------------------- ----------------------------------------
- ------------------------ -------- --------- --------- -------- --------- --------- ---------- ----------
A O U Z A*(8) O*(5) U*(9) Z*(6)
- ------------------------ -------- --------- --------- -------- --------- --------- ---------- ----------
- ------------------------ -------- --------- --------- -------- --------- --------- ---------- ----------
Value at beginning of
period
- ------------------------ -------- --------- --------- -------- --------- --------- ---------- ----------
- ------------------------ -------- --------- --------- -------- --------- --------- ---------- ----------
Value at end of period
- ------------------------ -------- --------- --------- -------- --------- --------- ---------- ----------
- ------------------------ -------- --------- --------- -------- --------- --------- ---------- ----------
Increase (decrease) in
value of Accumulation
Units
- ------------------------ -------- --------- --------- -------- --------- --------- ---------- ----------
- ------------------------ -------- --------- --------- -------- --------- --------- ---------- ----------
Number of Accumulation
Units outstanding at
end of period
- ------------------------ -------- --------- --------- -------- --------- --------- ---------- ----------
<PAGE>
VALUE INDEX INVESTMENT DIVISION
- ------------------------ -------------------------------------- ----------------------------------------
1998 By Category 1997 By Category
- ------------------------ -------------------------------------- ----------------------------------------
- ------------------------ -------- --------- --------- -------- --------- --------- ---------- ----------
A O U Z A O U Z
- ------------------------ -------- --------- --------- -------- --------- --------- ---------- ----------
- ------------------------ -------- --------- --------- -------- --------- --------- ---------- ----------
Value at beginning of
period
- ------------------------ -------- --------- --------- -------- --------- --------- ---------- ----------
- ------------------------ -------- --------- --------- -------- --------- --------- ---------- ----------
Value at end of period
- ------------------------ -------- --------- --------- -------- --------- --------- ---------- ----------
- ------------------------ -------- --------- --------- -------- --------- --------- ---------- ----------
Increase (decrease) in
value of Accumulation
Units
- ------------------------ -------- --------- --------- -------- --------- --------- ---------- ----------
- ------------------------ -------- --------- --------- -------- --------- --------- ---------- ----------
Number of Accumulation
Units outstanding at
end of period
- ------------------------ -------- --------- --------- -------- --------- --------- ---------- ----------
- ------------------------ -------------------------------------- ----------------------------------------
1996 By Category 1995 By Category
- ------------------------ -------------------------------------- ----------------------------------------
- ------------------------ -------- --------- --------- -------- --------- --------- ---------- ----------
A O U Z A*(8) O*(5) U*(4) Z*(10)
- ------------------------ -------- --------- --------- -------- --------- --------- ---------- ----------
- ------------------------ -------- --------- --------- -------- --------- --------- ---------- ----------
Value at beginning of
period
- ------------------------ -------- --------- --------- -------- --------- --------- ---------- ----------
- ------------------------ -------- --------- --------- -------- --------- --------- ---------- ----------
Value at end of period
- ------------------------ -------- --------- --------- -------- --------- --------- ---------- ----------
- ------------------------ -------- --------- --------- -------- --------- --------- ---------- ----------
Increase (decrease) in
value of Accumulation
Units
- ------------------------ -------- --------- --------- -------- --------- --------- ---------- ----------
- ------------------------ -------- --------- --------- -------- --------- --------- ---------- ----------
Number of Accumulation
Units outstanding at
end of period
- ------------------------ -------- --------- --------- -------- --------- --------- ---------- ----------
<PAGE>
SMALL-CAP VALUE INVESTMENT DIVISION
- ------------------------ -------------------------------------- ----------------------------------------
1998 By Category 1997 By Category
- ------------------------ -------------------------------------- ----------------------------------------
- ------------------------ -------- --------- --------- -------- --------- --------- ---------- ----------
A O U Z A O U Z
- ------------------------ -------- --------- --------- -------- --------- --------- ---------- ----------
- ------------------------ -------- --------- --------- -------- --------- --------- ---------- ----------
Value at beginning of
period
- ------------------------ -------- --------- --------- -------- --------- --------- ---------- ----------
- ------------------------ -------- --------- --------- -------- --------- --------- ---------- ----------
Value at end of period
- ------------------------ -------- --------- --------- -------- --------- --------- ---------- ----------
- ------------------------ -------- --------- --------- -------- --------- --------- ---------- ----------
Increase (decrease) in
value of Accumulation
Units
- ------------------------ -------- --------- --------- -------- --------- --------- ---------- ----------
- ------------------------ -------- --------- --------- -------- --------- --------- ---------- ----------
Number of Accumulation
Units outstanding at
end of period
- ------------------------ -------- --------- --------- -------- --------- --------- ---------- ----------
- ------------------------ -------------------------------------- ----------------------------------------
1996 By Category 1995 By Category
- ------------------------ -------------------------------------- ----------------------------------------
- ------------------------ -------- --------- --------- -------- --------- --------- ---------- ----------
A O U Z A*(8) O*(5) U*(4) Z*(7)
- ------------------------ -------- --------- --------- -------- --------- --------- ---------- ----------
- ------------------------ -------- --------- --------- -------- --------- --------- ---------- ----------
Value at beginning of
period
- ------------------------ -------- --------- --------- -------- --------- --------- ---------- ----------
- ------------------------ -------- --------- --------- -------- --------- --------- ---------- ----------
Value at end of period
- ------------------------ -------- --------- --------- -------- --------- --------- ---------- ----------
- ------------------------ -------- --------- --------- -------- --------- --------- ---------- ----------
Increase (decrease) in
value of Accumulation
Units
- ------------------------ -------- --------- --------- -------- --------- --------- ---------- ----------
- ------------------------ -------- --------- --------- -------- --------- --------- ---------- ----------
Number of Accumulation
Units outstanding at
end of period
- ------------------------ -------- --------- --------- -------- --------- --------- ---------- ----------
<PAGE>
FOREIGN EQUITY INVESTMENT DIVISION
- ------------------------ -------------------------------------- ----------------------------------------
1998 By Category 1997 By Category
- ------------------------ -------------------------------------- ----------------------------------------
- ------------------------ -------- --------- --------- -------- --------- --------- ---------- ----------
A O U Z A O U Z
- ------------------------ -------- --------- --------- -------- --------- --------- ---------- ----------
- ------------------------ -------- --------- --------- -------- --------- --------- ---------- ----------
Value at beginning of
period
- ------------------------ -------- --------- --------- -------- --------- --------- ---------- ----------
- ------------------------ -------- --------- --------- -------- --------- --------- ---------- ----------
Value at end of period
- ------------------------ -------- --------- --------- -------- --------- --------- ---------- ----------
- ------------------------ -------- --------- --------- -------- --------- --------- ---------- ----------
Increase (decrease) in
value of Accumulation
Units
- ------------------------ -------- --------- --------- -------- --------- --------- ---------- ----------
- ------------------------ -------- --------- --------- -------- --------- --------- ---------- ----------
Number of Accumulation
Units outstanding at
end of period
- ------------------------ -------- --------- --------- -------- --------- --------- ---------- ----------
- ------------------------ -------------------------------------- ----------------------------------------
1996 By Category 1995 By Category
- ------------------------ -------------------------------------- ----------------------------------------
- ------------------------ -------- --------- --------- -------- --------- --------- ---------- ----------
A O U Z A*(2) O*(5) U*(12) Z*(13)
- ------------------------ -------- --------- --------- -------- --------- --------- ---------- ----------
- ------------------------ -------- --------- --------- -------- --------- --------- ---------- ----------
Value at beginning of
period
- ------------------------ -------- --------- --------- -------- --------- --------- ---------- ----------
- ------------------------ -------- --------- --------- -------- --------- --------- ---------- ----------
Value at end of period
- ------------------------ -------- --------- --------- -------- --------- --------- ---------- ----------
- ------------------------ -------- --------- --------- -------- --------- --------- ---------- ----------
Increase (decrease) in
value of Accumulation
Units
- ------------------------ -------- --------- --------- -------- --------- --------- ---------- ----------
- ------------------------ -------- --------- --------- -------- --------- --------- ---------- ----------
Number of Accumulation
Units outstanding at
end of period
- ------------------------ -------- --------- --------- -------- --------- --------- ---------- ----------
<PAGE>
SMALL-CAP AGGRESSIVE GROWTH INVESTMENT DIVISION
- ------------------------ -------------------------------------- ----------------------------------------
1998 By Category 1997 By Category
- ------------------------ -------------------------------------- ----------------------------------------
- ------------------------ -------- --------- --------- -------- --------- --------- ---------- ----------
A O U Z A O U Z
- ------------------------ -------- --------- --------- -------- --------- --------- ---------- ----------
- ------------------------ -------- --------- --------- -------- --------- --------- ---------- ----------
Value at beginning of
period
- ------------------------ -------- --------- --------- -------- --------- --------- ---------- ----------
- ------------------------ -------- --------- --------- -------- --------- --------- ---------- ----------
Value at end of period
- ------------------------ -------- --------- --------- -------- --------- --------- ---------- ----------
- ------------------------ -------- --------- --------- -------- --------- --------- ---------- ----------
Increase (decrease) in
value of Accumulation
Units
- ------------------------ -------- --------- --------- -------- --------- --------- ---------- ----------
- ------------------------ -------- --------- --------- -------- --------- --------- ---------- ----------
Number of Accumulation
Units outstanding at
end of period
- ------------------------ -------- --------- --------- -------- --------- --------- ---------- ----------
- ------------------------ -------------------------------------- ----------------------------------------
1996 By Category 1995 By Category
- ------------------------ -------------------------------------- ----------------------------------------
- ------------------------ -------- --------- --------- -------- --------- --------- ---------- ----------
A O U Z A*(8) O*(7) U*(14) Z*(7)
- ------------------------ -------- --------- --------- -------- --------- --------- ---------- ----------
- ------------------------ -------- --------- --------- -------- --------- --------- ---------- ----------
Value at beginning of
period
- ------------------------ -------- --------- --------- -------- --------- --------- ---------- ----------
- ------------------------ -------- --------- --------- -------- --------- --------- ---------- ----------
Value at end of period
- ------------------------ -------- --------- --------- -------- --------- --------- ---------- ----------
- ------------------------ -------- --------- --------- -------- --------- --------- ---------- ----------
Increase (decrease) in
value of Accumulation
Units
- ------------------------ -------- --------- --------- -------- --------- --------- ---------- ----------
- ------------------------ -------- --------- --------- -------- --------- --------- ---------- ----------
Number of Accumulation
Units outstanding at
end of period
- ------------------------ -------- --------- --------- -------- --------- --------- ---------- ----------
<PAGE>
CORPORATE BOND INVESTMENT DIVISION
- ------------------------ -------------------------------------- ----------------------------------------
1998 By Category 1997 By Category
- ------------------------ -------------------------------------- ----------------------------------------
- ------------------------ -------- --------- --------- -------- --------- --------- ---------- ----------
A O U Z A O U Z
- ------------------------ -------- --------- --------- -------- --------- --------- ---------- ----------
- ------------------------ -------- --------- --------- -------- --------- --------- ---------- ----------
Value at beginning of
period
- ------------------------ -------- --------- --------- -------- --------- --------- ---------- ----------
- ------------------------ -------- --------- --------- -------- --------- --------- ---------- ----------
Value at end of period
- ------------------------ -------- --------- --------- -------- --------- --------- ---------- ----------
- ------------------------ -------- --------- --------- -------- --------- --------- ---------- ----------
Increase (decrease) in
value of Accumulation
Units
- ------------------------ -------- --------- --------- -------- --------- --------- ---------- ----------
- ------------------------ -------- --------- --------- -------- --------- --------- ---------- ----------
Number of Accumulation
Units outstanding at
end of period
- ------------------------ -------- --------- --------- -------- --------- --------- ---------- ----------
- ------------------------ -------------------------------------- ----------------------------------------
1996 By Category 1995 By Category
- ------------------------ -------------------------------------- ----------------------------------------
- ------------------------ -------- --------- --------- -------- --------- --------- ---------- ----------
A O U Z A*(8) O*(5) U*(11) Z*(6)
- ------------------------ -------- --------- --------- -------- --------- --------- ---------- ----------
- ------------------------ -------- --------- --------- -------- --------- --------- ---------- ----------
Value at beginning of
period
- ------------------------ -------- --------- --------- -------- --------- --------- ---------- ----------
- ------------------------ -------- --------- --------- -------- --------- --------- ---------- ----------
Value at end of period
- ------------------------ -------- --------- --------- -------- --------- --------- ---------- ----------
- ------------------------ -------- --------- --------- -------- --------- --------- ---------- ----------
Increase (decrease) in
value of Accumulation
Units
- ------------------------ -------- --------- --------- -------- --------- --------- ---------- ----------
- ------------------------ -------- --------- --------- -------- --------- --------- ---------- ----------
Number of Accumulation
Units outstanding at
end of period
- ------------------------ -------- --------- --------- -------- --------- --------- ---------- ----------
<PAGE>
SHORT-TERM MATURITY BOND INVESTMENT DIVISION
- ------------------------ -------------------------------------- ----------------------------------------
1998 By Category 1997 By Category
- ------------------------ -------------------------------------- ----------------------------------------
- ------------------------ -------- --------- --------- -------- --------- --------- ---------- ----------
A O U Z A O U Z
- ------------------------ -------- --------- --------- -------- --------- --------- ---------- ----------
- ------------------------ -------- --------- --------- -------- --------- --------- ---------- ----------
Value at beginning of
period
- ------------------------ -------- --------- --------- -------- --------- --------- ---------- ----------
- ------------------------ -------- --------- --------- -------- --------- --------- ---------- ----------
Value at end of period
- ------------------------ -------- --------- --------- -------- --------- --------- ---------- ----------
- ------------------------ -------- --------- --------- -------- --------- --------- ---------- ----------
Increase (decrease) in
value of Accumulation
Units
- ------------------------ -------- --------- --------- -------- --------- --------- ---------- ----------
- ------------------------ -------- --------- --------- -------- --------- --------- ---------- ----------
Number of Accumulation
Units outstanding at
end of period
- ------------------------ -------- --------- --------- -------- --------- --------- ---------- ----------
- ------------------------ -------------------------------------- ----------------------------------------
1996 By Category 1995 By Category
- ------------------------ -------------------------------------- ----------------------------------------
- ------------------------ -------- --------- --------- -------- --------- --------- ---------- ----------
A O U Z A*(16) O*(16) U*(16) Z*(16)
- ------------------------ -------- --------- --------- -------- --------- --------- ---------- ----------
- ------------------------ -------- --------- --------- -------- --------- --------- ---------- ----------
Value at beginning of
period
- ------------------------ -------- --------- --------- -------- --------- --------- ---------- ----------
- ------------------------ -------- --------- --------- -------- --------- --------- ---------- ----------
Value at end of period
- ------------------------ -------- --------- --------- -------- --------- --------- ---------- ----------
- ------------------------ -------- --------- --------- -------- --------- --------- ---------- ----------
Increase (decrease) in
value of Accumulation
Units
- ------------------------ -------- --------- --------- -------- --------- --------- ---------- ----------
- ------------------------ -------- --------- --------- -------- --------- --------- ---------- ----------
Number of Accumulation
Units outstanding at
end of period
- ------------------------ -------- --------- --------- -------- --------- --------- ---------- ----------
<PAGE>
BLUE CHIP INVESTMENT DIVISION
- ------------------------ -------------------------------------- ----------------------------------------
1998 By Category 1997 By Category
- ------------------------ -------------------------------------- ----------------------------------------
- ------------------------ -------- --------- --------- -------- --------- --------- ---------- ----------
A O U Z A*(18) O*(18) U*(18) Z*(18)
- ------------------------ -------- --------- --------- -------- --------- --------- ---------- ----------
- ------------------------ -------- --------- --------- -------- --------- --------- ---------- ----------
Value at beginning of
period
- ------------------------ -------- --------- --------- -------- --------- --------- ---------- ----------
- ------------------------ -------- --------- --------- -------- --------- --------- ---------- ----------
Value at end of period
- ------------------------ -------- --------- --------- -------- --------- --------- ---------- ----------
- ------------------------ -------- --------- --------- -------- --------- --------- ---------- ----------
Increase (decrease) in
value of Accumulation
Units
- ------------------------ -------- --------- --------- -------- --------- --------- ---------- ----------
- ------------------------ -------- --------- --------- -------- --------- --------- ---------- ----------
Number of Accumulation
Units outstanding at
end of period
- ------------------------ -------- --------- --------- -------- --------- --------- ---------- ----------
- ------------------------ -------------------------------------- ----------------------------------------
1996 By Category 1995 By Category
- ------------------------ -------------------------------------- ----------------------------------------
- ------------------------ -------- --------- --------- -------- --------- --------- ---------- ----------
A O U Z A O U Z
- ------------------------ -------- --------- --------- -------- --------- --------- ---------- ----------
- ------------------------ -------- --------- --------- -------- --------- --------- ---------- ----------
Value at beginning of
period
- ------------------------ -------- --------- --------- -------- --------- --------- ---------- ----------
- ------------------------ -------- --------- --------- -------- --------- --------- ---------- ----------
Value at end of period
- ------------------------ -------- --------- --------- -------- --------- --------- ---------- ----------
- ------------------------ -------- --------- --------- -------- --------- --------- ---------- ----------
Increase (decrease) in
value of Accumulation
Units
- ------------------------ -------- --------- --------- -------- --------- --------- ---------- ----------
- ------------------------ -------- --------- --------- -------- --------- --------- ---------- ----------
Number of Accumulation
Units outstanding at
end of period
- ------------------------ -------- --------- --------- -------- --------- --------- ---------- ----------
<PAGE>
MIDCAP GROWTH INVESTMENT DIVISION
- ------------------------ -------------------------------------- ----------------------------------------
1998 By Category 1997 By Category
- ------------------------ -------------------------------------- ----------------------------------------
- ------------------------ -------- --------- --------- -------- --------- --------- ---------- ----------
A O U Z A*(17) O*(17) U*(17) Z*(17)
- ------------------------ -------- --------- --------- -------- --------- --------- ---------- ----------
- ------------------------ -------- --------- --------- -------- --------- --------- ---------- ----------
Value at beginning of
period
- ------------------------ -------- --------- --------- -------- --------- --------- ---------- ----------
- ------------------------ -------- --------- --------- -------- --------- --------- ---------- ----------
Value at end of period
- ------------------------ -------- --------- --------- -------- --------- --------- ---------- ----------
- ------------------------ -------- --------- --------- -------- --------- --------- ---------- ----------
Increase (decrease) in
value of Accumulation
Units
- ------------------------ -------- --------- --------- -------- --------- --------- ---------- ----------
- ------------------------ -------- --------- --------- -------- --------- --------- ---------- ----------
Number of Accumulation
Units outstanding at
end of period
- ------------------------ -------- --------- --------- -------- --------- --------- ---------- ----------
- ------------------------ -------------------------------------- ----------------------------------------
1996 By Category 1995 By Category
- ------------------------ -------------------------------------- ----------------------------------------
- ------------------------ -------- --------- --------- -------- --------- --------- ---------- ----------
A O U Z A O U Z
- ------------------------ -------- --------- --------- -------- --------- --------- ---------- ----------
- ------------------------ -------- --------- --------- -------- --------- --------- ---------- ----------
Value at beginning of
period
- ------------------------ -------- --------- --------- -------- --------- --------- ---------- ----------
- ------------------------ -------- --------- --------- -------- --------- --------- ---------- ----------
Value at end of period
- ------------------------ -------- --------- --------- -------- --------- --------- ---------- ----------
- ------------------------ -------- --------- --------- -------- --------- --------- ---------- ----------
Increase (decrease) in
value of Accumulation
Units
- ------------------------ -------- --------- --------- -------- --------- --------- ---------- ----------
- ------------------------ -------- --------- --------- -------- --------- --------- ---------- ----------
Number of Accumulation
Units outstanding at
end of period
- ------------------------ -------- --------- --------- -------- --------- --------- ---------- ----------
</TABLE>
<PAGE>
Appendix B
Appendix B
Net Investment Factor
The following formula is what we use to calculate the value of an Accumulation
Unit. The Net Investment Factor is determined by dividing (a) by (b), and
subtracting (c) from the result where:
(a) is the net result of:
(i) the net asset value per share of the portfolio shares determined as of
the end of the current Valuation Period, plus
(ii)the per share amount of any dividend (or, if applicable, capital gain
distributions) made by the portfolio on shares if the "ex-dividend" date
occurs during the current Valuation Period, minus or plus
(iii) a per unit charge or credit for any taxes incurred by or provided for
in the Variable Sub-Account, which is determined by GWL&A to have
resulted from the investment operations of the Variable Sub-Account; and
(b) is the net asset value per share of the portfolio shares determined as of
the end of the immediately preceding Valuation Period; and
(c) is an amount representing the Risk Charge deducted from each Variable
Sub-Account on a daily basis.
The Net Investment Factor may be greater than, less than, or equal to one.
Therefore, the Accumulation Unit Value may increase, decrease or remain
unchanged.
The net asset value per share referred to in paragraphs (a) (i) and (b) (i)
above, reflect the investment performance of the portfolio as well as the
payment of portfolio expenses.
<PAGE>
Part B
RETIREMENT PLAN SERIES ACCOUNT
Individual Flexible Premium Variable Annuity Contracts
issued by
Great-West Life & Annuity Insurance Company
8515 E. Orchard Road
Englewood, Colorado 80111
Telephone: (800) 495-4952
STATEMENT OF ADDITIONAL INFORMATION
This Statement of Additional Information is not a Prospectus and should
be read in conjunction with the Prospectus, dated ________, _______, 1999, which
is available without charge by contacting Great-West Life & Annuity Insurance
Company ("GWL&A") at the above address or at the above telephone number.
________, ______, 1999
<PAGE>
TABLE OF CONTENTS
Page
CUSTODIAN AND INDEPENDENT AUDITORS......................................B-III
UNDERWRITER.............................................................B-III
CALCULATION OF PERFORMANCE DATA.........................................B-IV
FINANCIAL STATEMENTS....................................................B-V
<PAGE>
Part B
V
CUSTODIAN AND INDEPENDENT AUDITORS
........A. Custodian
........ The assets of Retirement Plan Series Account (the "Series Account") are
held by GWL&A. The assets of the Series Account are kept physically segregated
and held separate and apart from the general account of GWL&A. GWL&A maintains
records of all purchases and redemptions of shares of the Fund. Additional
protection for the assets of the Series Account is afforded by blanket fidelity
bonds issued to The Great-West Life Assurance Company ("Great-West") in the
amount of $50 million (Canadian), which cover all officers and employees of
GWL&A.
........B. Independent Auditors
........ The accounting firm of Deloitte & Touche LLP performs certain
accounting and auditing services for GWL&A and the Series Account. The principal
business address of Deloitte & Touche LLP is 555 Seventeenth Street, Suite 3600,
Denver, Colorado 80202-3942.
........ The consolidated financial statements of GWL&A at December 31, 1998 and
1997 and each of the three years in the period ended December 31, 1998, as well
as the financial statements of the Series Account for the years ended December
31, 1998, and 1997, which are included in this Statement of Additional
Information have been audited by Deloitte & Touche LLP, independent auditors, as
set forth in their reports appearing herein and are included in reliance upon
such reports given upon the authority of such firm as experts in accounting and
auditing.
UNDERWRITER
........The offering of the Contracts is made on a continuous basis by One
Orchard Equities, Inc., a wholly owned subsidiary of GWL&A. Previously the
Contracts were offered through, Great-West, an affiliate of GWL&A. No payments
were made to Great-West for the years 1994 through 1997 and no payment was made
to One Orchard Equities, Inc. in 1998.
<PAGE>
CALCULATION OF PERFORMANCE DATA
A.......Yield and Effective Yield Quotations for the Money Market Investment
Division
........The yield quotation for the Money Market Investment Division set forth
in the Prospectus is for the seven-day period ended December 31, 1998 and is
computed by determining the net change, exclusive of capital changes, in the
value of a hypothetical pre-existing account having a balance of one
Accumulation Unit in the Money Market Investment Division at the beginning of
the period, subtracting a hypothetical charge reflecting deductions from
Participant accounts, and dividing the difference by the value of the account at
the beginning of the base period to obtain the base period return, and then
multiplying the base period return by (365/7) with the resulting yield figure
carried to the nearest hundredth of one percent.
........The effective yield quotation for the Money Market Investment Division
set forth in the Prospectus is for the seven-day period ended December 31, 1998
and is carried to the nearest hundredth of one percent, computed by determining
the net change, exclusive of capital changes, in the value of a hypothetical
pre-existing account having a balance of one Accumulation Unit in the Money
Market Investment Division at the beginning of the period, subtracting a
hypothetical charge reflecting deductions from Participant accounts, and
dividing the difference by the value of the account at the beginning of the base
period to obtain the base period return, and then compounding the base period
return by adding 1, raising the sum to a power equal to 365 divided by 7, and
subtracting 1 from the result, according to the following formula:
........EFFECTIVE YIELD = [(BASE PERIOD RETURN +1 365/7]-1.
........For purposes of the yield and effective yield computations, the
hypothetical charge reflects all deductions that are charged to all Participant
accounts in proportion to the length of the base period, and for any fees that
vary with the size of the account, the account size is assumed to be the Money
Market Investment Division's mean account size. The specific percentage
applicable to a particular withdrawal would depend on a number of factors
including the length of time the Contract Owner has participated under the
Contracts. No deductions or sales loads are assessed upon annuitization under
the Contracts. Realized gains and losses from the sale of securities and
unrealized appreciation and depreciation of the Money Market Investment Division
and the Fund are excluded from the calculation of yield.
<PAGE>
B.......Total Return Quotations for All Investment Divisions
........The total return quotations for all Investment Divisions, other than the
Money Market, set forth in the Prospectus are average annual total return
quotations for the one-year period ended December 31, 1998. The quotations are
computed by finding the average annual compounded rates of return over the
relevant periods that would equate the initial amount invested to the ending
redeemable value, according to the following formula:
........P(1+T)N = ERV
........Where: P = a hypothetical initial payment of $1,000
........ T = average annual total return
........ N = number of years
ERV = ending redeemable value of a hypothetical $1,000 payment made
at the beginning of the particular period at the end of the
particular period
For purposes of the total return quotations for these Investment Divisions, the
calculations take into effect all fees that are charged to the Contract Value,
and for any fees that vary with the size of the account, the account size is
assumed to be the respective Investment Divisions' mean account size. The
calculations also assume a complete redemption as of the end of the particular
period.
FINANCIAL STATEMENTS
The financial statements of GWL&A as contained herein should be
considered only as bearing upon GWL&A's ability to meet its obligations under
the Contracts, and they should not be considered as bearing on the investment
performance of the Series Account. The variable interest of Contract Owners
under the Contract is affected solely by the investment results of the Series
Account.
<PAGE>
PART B
FINANCIAL STATEMENTS
<PAGE>
RETIREMENT PLAN SERIES ACCOUNT
================================================================================
================================================================================
FINANCIAL STATEMENTS
FOR THE YEARS ENDED DECEMBER 31, 1998 AND 1997
AND INDEPENDENT AUDITORS' REPORT
<PAGE>
GREAT-WEST LIFE & ANNUITY INSURANCE COMPANY
=============================================================================
=============================================================================
CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEARS ENDED DECEMBER 31, 1998, 1997 AND 1996
AND INDEPENDENT AUDITORS' REPORT
<PAGE>
XIII
Part C
PART C
OTHER INFORMATION
Item 24. Financial Statements and Exhibits
(a) Financial Statements
The financial statements for Retirement Plan Series
Account for the years ended December 31, 1998 and 1997 as
well as the financial statements for Great-West Life &
Annuity Insurance Company for the years ended December 31,
1998, 1997 and 1996 are included in Part B.
(b) Exhibits
Exhibits (1), (2), (3), and (6) are incorporated by
reference to Registrant's Form N-4 Registration Statement
filed September 13, 1994.
(4) Exhibit 4 is incorporated by reference to Registrant's registration
statement filed on May 6, 1998.
(5) Exhibit 5 is incorporated by reference to Registrant's registration
statement filed on May 6, 1998.
(7) Not applicable
(8) Not applicable
(9) Exhibit 9 is incorporated by reference to Registrant's registration
statement dated September 13, 1994.
(10) (a) Written Consent of Jorden Burt Boros Cicchetti
Berenson & Johnson, LLP (to be filed by amendment).
(b) Written Consent of Deloitte & Touche LLP (to be filed by
amendment). (c) Written Consent of Ruth B. Lure (to be filed by
amendment).
(11) Not Applicable
(12) Not Applicable
(13) Exhibit 13 is incorporated by reference to Registrant's
Post-Effective Amendment No. 3 to its Registration Statement
dated April 24, 1997.
Item 25. Directors and Officers of the Depositor
<TABLE>
Position and Offices
<S> <C> <C> <C> <C> <C> <C>
Name Principal Business Address with Depositor
James Balog 2205 North Southwinds Boulevard Director
Vero Beach, Florida 39263
James W. Burns, O.C. (4) Director
Orest T. Dackow (3) Director
Andre Desmarais (4) Director
Paul Desmarais, Jr. (4) Director
Robert G. Graham 574 Spoonbill Drive Director
Sarasota, FL 34236
Robert Gratton (5) Chairman
N. Berne Hart 2552 East Alameda Avenue Director
Denver, Colorado 80209
Kevin P. Kavanagh (1) Director
William Mackness 61 Waterloo Street Director
Winnipeg, Manitoba R3N 0S3
William T. McCallum (3) Director, President and
Chief Executive Officer
Jerry E.A. Nickerson H.B. Nickerson & Sons Limited Director
P.O. Box 130
275 Commercial Street
North Sydney, Nova Scotia B2A 3M2
P. Michael Pitfield, P.C., Q.C. (4) Director
Michel Plessis-Belair, F.C.A. (4) Director
Brian E. Walsh Trinity L.P. Director
115 Putnam Ave.
Greenwich, Connecticut 06830
John A. Brown (3) Senior Vice President,
Sales,
Financial Services
Donna A. Goldin (2) Executive Vice President
and Chief Operating
Officer, One Corporation
Mitchell T. Graye (3) Executive Vice President
and Chief Financial Officer
John T. Hughes (3) Senior Vice President, Chief
Investment Officer
D. Craig Lennox (3) Senior Vice President,
General Counsel and
Secretary
Dennis Low (3) Executive Vice President,
Financial Services
Alan D. MacLennan (2) Executive Vice President,
Employee Benefits
Steve H. Miller (2) Senior Vice
President,
Employee Benefits Sales
James D. Motz (2) Executive Vice President,
Employee Benefits
Charles P. Nelson (3) Senior Vice President,
Public/Nonprofit Markets
Marty Rosenbaum (2) Senior Vice President,
Employee Benefits
Operations
Greg E. Seller (3)
Senior Vice President, Major
Accounts
Robert K. Shaw (3) Senior Vice President,
Individual Markets
Douglas L. Wooden (3) Executive Vice President,
Financial Services
- ----------------------------------------
(1) 100 Osborne Street North, Winnipeg, Manitoba, Canada R3C 3A5.
(2) 8505 East Orchard Road, Englewood, Colorado 80111.
(3) 8515 East Orchard Road, Englewood, Colorado 80111.
(4) Power Corporation of Canada, 751 Victoria Square, Montreal, Quebec, Canada H2Y 2J3.
(5) Power Financial Corporation, 751 Victoria Square, Montreal, Quebec, Canada H2Y 2J3.
<PAGE>
Item 26. Persons controlled by or under common control with the Depositor or Registrant
Power Corporation of Canada
100% - 2795957 Canada Inc.
100% - 171263 Canada Inc.
67.7% - Power Financial Corporation
81.2% - Great-West Lifeco Inc.
99.5% - The Great-West Life Assurance Company
100% - GWL&A Financial (Nova Scotia) Inc.
100% - GWL&A Financial Inc.
100% - Great-West Life & Annuity Insurance
Company
100% - First Great-West Life & Annuity
Insurance Company
100% - GW Capital Management, LLC
100% - Orchard Capital
Management, LLC
100% - Greenwood Investments, Inc.
100% - Financial Administrative Services
Corporation
100% - One Corporation
100% - One Health Plan of
Arizona, Inc.
100% - One Health Plan of
Illinois, Inc.
100% - One Health Plan of
Texas, Inc.
100% - One Health Plan of
California, Inc.
100% - One Health Plan of
Colorado, Inc.
100% - One Health Plan of
Georgia, Inc.
100% - One Health Plan of
North Carolina, Inc.
100% - One Health Plan of
South Carolina, Inc.
100% - One Health Plan of
Washington, Inc.
100% - One Health Plan of
Ohio, Inc.
100% - One Health Plan of
Tennessee, Inc.
100% - One Health Plan of
Oregon, Inc.
100% - One Health Plan of
Florida, Inc.
100% - One Health Plan of
Indiana, Inc.
100% - One Health Plan of
Massachusetts, Inc.
100% - One Health Plan of
Maine, Inc.
100% - One Health Plan of New
Jersey, Inc.
100% - One Health Plan of New
Hampshire, Inc.
100% - One Health Plan of
Pennsylvania, Inc.
100% - One Health Plan, Inc.
(Vermont)
100% - One Orchard Equities,
Inc.
100% - Great-West Benefit Services, Inc.
13% - Private Healthcare
Systems, Inc.
100% - Benefits Communication
Corporation
100% - BenefitsCorp Equities,
Inc.
95% - Maxim Series Fund, Inc.*
100% - Greenwood Property Corporation
100% - GWL Properties Inc.
100% - Great-West Realty
Investments Inc.
50% - Westkin Properties, Ltd.
100% - Confed Admin Services, Inc.
92% - Orchard Series Fund**
* New England Life Insurance Company - 5%
** New England Life Insurance Company - 8%
</TABLE>
<PAGE>
Item 27. Number of Contract Owners
As of February 28, 1999, there were _________ Contract Owners.
Item 28. Indemnification
Provisions exist under the Colorado General Corporation Code and the Bylaws of
GWL&A whereby GWL&A may indemnify a director, officer, or controlling person of
GWL&A against liabilities arising under the Securities Act of 1933. The
following excerpts contain the substance of these provisions:
Colorado Business Corporation Act
Article 109 - INDEMNIFICATION
Section 7-109-101. Definitions.
As used in this Article:
(1) "Corporation" includes any domestic or foreign entity that is
a predecessor of the corporation by reason of a merger,
consolidation, or other transaction in which the predecessor's
existence ceased upon consummation of the transaction.
(2) "Director" means an individual who is or was a director of a
corporation or an individual who, while a director of a
corporation, is or was serving at the corporation's request as a
director, officer, partner, trustee, employee, fiduciary or agent
of another domestic or foreign corporation or other person or
employee benefit plan. A director is considered to be serving an
employee benefit plan at the corporation's request if his or her
duties to the corporation also impose duties on or otherwise
involve services by, the director to the plan or to participants
in or beneficiaries of the plan.
(3) "Expenses" includes counsel fees.
(4) "Liability" means the obligation incurred with respect to a
proceeding to pay a judgment, settlement, penalty, fine,
including an excise tax assessed with respect to an employee
benefit plan, or reasonable expenses.
(5) "Official capacity" means, when used with respect to a
director, the office of director in the corporation and, when
used with respect to a person other than a director as
contemplated in Section 7-109-107, means the office in the
corporation held by the officer or the employment, fiduciary, or
agency relationship undertaken by the employee, fiduciary, or
agent on behalf of the corporation. "Official capacity" does not
include service for any other domestic or foreign corporation or
other person or employee benefit plan.
(6) "Party" includes a person who was, is, or is threatened to be
made a named defendant or respondent in a proceeding.
(7) "Proceeding" means any threatened, pending, or completed
action, suit, or proceeding, whether civil, criminal,
administrative, or investigative and whether formal or informal.
Section 7-109-102. Authority to indemnify directors.
(1) Except as provided in subsection (4) of this section, a
corporation may indemnify a person made a party to the proceeding
because the person is or was a director against liability
incurred in any proceeding if:
(a) The person conducted himself or herself in good faith;
(b) The person reasonably believed:
(I) In the case of conduct in an official capacity
with the corporation, that his or her conduct was
in the corporation's best interests; or
(II) In all other cases, that his or her conduct
was at least not opposed to the corporation's best
interests; and
(c) In the case of any criminal proceeding, the person had
no reasonable cause to believe his or her conduct was
unlawful.
(2) A director's conduct with respect to an employee benefit plan
for a purpose the director reasonably believed to be in the
interests of the participants in or beneficiaries of the plan is
conduct that satisfies the requirements of subparagraph (II) of
paragraph (b) of subsection (1) of this section. A director's
conduct with respect to an employee benefit plan for a purpose
that the director did not reasonably believe to be in the
interests of the participants in or beneficiaries of the plan
shall be deemed not to satisfy the requirements of subparagraph
(a) of subsection (1) of this section.
(3) The termination of any proceeding by judgment, order,
settlement, or conviction, or upon a plea of nolo contendere or
its equivalent, is not, of itself, determinative that the
director did not meet the standard of conduct described in this
section.
(4) A corporation may not indemnify a director under this
section:
(a) In connection with a proceeding by or in the right of
the corporation in which the director was adjudged liable
to the corporation; or
(b) In connection with any proceeding charging that the
director derived an improper personal benefit, whether or
not involving action in his official capacity, in which
proceeding the director was adjudged liable on the basis
that he or she derived an improper personal benefit.
(5) Indemnification permitted under this section in connection
with a proceeding by or in the right of a corporation is limited
to reasonable expenses incurred in connection with the
proceeding.
Section 7-109-103. Mandatory Indemnification of Directors.
Unless limited by the articles of incorporation, a corporation
shall be required to indemnify a person who is or was a director of the
corporation and who was wholly successful, on the merits or otherwise,
in defense of any proceeding to which he was a party, against reasonable
expenses incurred by him in connection with the proceeding.
Section 7-109-104. Advance of Expenses to Directors.
(1) A corporation may pay for or reimburse the reasonable
expenses incurred by a director who is a party to a proceeding in
advance of the final disposition of the proceeding if:
(a) The director furnishes the corporation a written
affirmation of his good-faith belief that he has met the
standard of conduct described in Section 7-109-102;
(b) The director furnishes the corporation a written
undertaking, executed personally or on the director's
behalf, to repay the advance if it is ultimately
determined that he or she did not meet such standard of
conduct; and
(c) A determination is made that the facts then know to
those making the determination would not preclude
indemnification under this article.
(2) The undertaking required by paragraph (b) of subsection (1)
of this section shall be an unlimited general obligation of the
director, but need not be secured and may be accepted without
reference to financial ability to make repayment.
(3) Determinations and authorizations of payments under this
section shall be made in the manner specified in Section
7-109-106.
Section 7-109-105. Court-Ordered Indemnification of Directors.
(1) Unless otherwise provided in the articles of incorporation, a
director who is or was a party to a proceeding may apply for
indemnification to the court conducting the proceeding or to
another court of competent jurisdiction. On receipt of an
application, the court, after giving any notice the court
considers necessary, may order indemnification in the following
manner:
(a) If it determines the director is entitled to mandatory
indemnification under section 7-109-103, the court shall
order indemnification, in which case the court shall also
order the corporation to pay the director's reasonable
expenses incurred to obtain court-ordered indemnification.
(b) If it determines that the director is fairly and
reasonably entitled to indemnification in view of all the
relevant circumstances, whether or not the director met
the standard of conduct set forth in section 7-109-102 (1)
or was adjudged liable in the circumstances described in
Section 7-109-102 (4), the court may order such
indemnification as the court deems proper; except that the
indemnification with respect to any proceeding in which
liability shall have been adjudged in the circumstances
described Section 7-109-102 (4) is limited to reasonable
expenses incurred in connection with the proceeding and
reasonable expenses incurred to obtain court-ordered
indemnification.
Section 7-109-106. Determination and Authorization of Indemnification of
Directors.
(1) A corporation may not indemnify a director under Section
7-109-102 unless authorized in the specific case after a
determination has been made that indemnification of the director
is permissible in the circumstances because he has met the
standard of conduct set forth in Section 7-109-102. A corporation
shall not advance expenses to a director under Section 7-109-104
unless authorized in the specific case after the written
affirmation and undertaking required by Section 7-109-104(1)(a)
and (1)(b) are received and the determination required by Section
7-109-104(1)(c) has been made.
(2) The determinations required to be made subsection (1) of this
section shall be made:
(a) By the board of directors by a majority vote of those
present at a meeting at which a quorum is present, and
only those directors not parties to the proceeding shall
be counted in satisfying the quorum.
(b) If a quorum cannot be obtained, by a majority vote of
a committee of the board of directors designated by the
board of directors, which committee shall consist of two
or more directors not parties to the proceeding; except
that directors who are parties to the proceeding may
participate in the designation of directors for the
committee.
(3) If a quorum cannot be obtained as contemplated in paragraph
(a) of subsection (2) of this section, and the committee cannot
be established under paragraph (b) of subsection (2) of this
section, or even if a quorum is obtained or a committee
designated, if a majority of the directors constituting such
quorum or such committee so directs, the determination required
to be made by subsection (1) of this section shall be made:
(a) By independent legal counsel selected by a vote of the
board of directors or the committee in the manner
specified in paragraph (a) or (b) of subsection (2) of
this section or, if a quorum of the full board cannot be
obtained and a committee cannot be established, by
independent legal counsel selected by a majority vote of
the full board of directors; or
(b) By the shareholders.
(4) Authorization of indemnification and evaluation as to
reasonableness of expenses shall be made in the same manner as
the determination that indemnification is permissible; except
that, if the determination that indemnification is permissible
is made by independent legal counsel, authorization of
indemnification and advance of expenses shall be made by the
body that selected such counsel.
Section 7-109-107. Indemnification of Officers, Employees, Fiduciaries, and
Agents.
(1) Unless otherwise provided in the articles of incorporation:
(a) An officer is entitled to mandatory indemnification
under section 7-109-103, and is entitled to apply for
court-ordered indemnification under section 7-109-105, in
each case to the same extent as a director;
(b) A corporation may indemnify and advance expenses to an
officer, employee, fiduciary, or agent of the corporation
to the same extent as a director; and
(c) A corporation may indemnify and advance expenses to an
officer, employee, fiduciary, or agent who is not a
director to a greater extent, if not inconsistent with
public policy, and if provided for by its bylaws, general
or specific action of its board of directors or
shareholders, or contract.
Section 7-109-108. Insurance.
A corporation may purchase and maintain insurance on behalf of a person
who is or was a director, officer, employee, fiduciary, or agent of the
corporation and who, while a director, officer, employee, fiduciary, or agent of
the corporation, is or was serving at the request of the corporation as a
director, officer, partner, trustee, employee, fiduciary, or agent of any other
domestic or foreign corporation or other person or of an employee benefit plan
against any liability asserted against or incurred by the person in that
capacity or arising out of his or her status as a director, officer, employee,
fiduciary, or agent whether or not the corporation would have the power to
indemnify the person against such liability under the Section 7-109-102,
7-109-103 or 7-109-107. Any such insurance may be procured from any insurance
company designated by the board of directors, whether such insurance company is
formed under the laws of this state or any other jurisdiction of the United
States or elsewhere, including any insurance company in which the corporation
has an equity or any other interest through stock ownership or otherwise.
Section 7-109-109. Limitation of Indemnification of Directors.
(1) A provision concerning a corporation's indemnification of, or
advance of expenses to, directors that is contained in its
articles of incorporation or bylaws, in a resolution of its
shareholders or board of directors, or in a contract, except for
an insurance policy or otherwise, is valid only to the extent the
provision is not inconsistent with Sections 7-109-101 to
7-109-108. If the articles of incorporation limit indemnification
or advance of expenses, indemnification or advance of expenses
are valid only to the extent not inconsistent with the articles
of incorporation.
(2) Sections 7-109-101 to 7-109-108 do not limit a corporation's
power to pay or reimburse expenses incurred by a director in
connection with an appearance as a witness in a proceeding at a
time when he or she has not been made a named defendant or
respondent in the proceeding.
Section 7-109-110. Notice to Shareholders of Indemnification of Director.
If a corporation indemnifies or advances expenses to a director under
this article in connection with a proceeding by or in the right of the
corporation, the corporation shall give written notice of the indemnification or
advance to the shareholders with or before the notice of the next shareholders'
meeting. If the next shareholder action is taken without a meeting at the
instigation of the board of directors, such notice shall be given to the
shareholders at or before the time the first shareholder signs a writing
consenting to such action.
Bylaws of GWL&A
Article II, Section 11. Indemnification of Directors.
(1) In this section, the following terms shall have the following meanings:
(a) "expenses" means reasonable expenses incurred in a legal
proceeding, including expenses of investigation and
preparation, expenses in connection with an appearance as a
witness, and fees and disbursement of counsel, accountants or
other experts;
(b) "liability" means an obligation incurred with respect to a proceeding to
pay a judgment, settlement, penalty or fine;
(c) "party" includes a person who was, is, or is threatened to be made a named
defendant or respondent in a proceeding;
(d) "proceeding" means any threatened, pending or completed
action, suit, or proceeding whether civil, criminal,
administrative or investigative, and whether formal or
informal.
(2) Subject to applicable law, if any person who is a director, officer
or employee of the corporation is made a party to a proceeding
because the person is or was a director, officer or employee of the
corporation, the corporation shall indemnify the person, or the
estate or personal representative of the person, from and against all
liability and expenses incurred by the person in the proceeding (and
advance to the person expenses incurred in the proceeding) if, with
respect to the matter(s) giving rise to the proceeding:
(a) the person conducted himself or herself in good faith; and
(b) the person reasonably believed that his or her conduct was in the
corporation's best interests; and
(c) in the case of any criminal proceeding, the person had no reasonable cause
to believe that his or her conduct was unlawful; and
(d) if the person is or was an employee of the corporation, the
person acted in the ordinary course of the person's employment
with the corporation.
(3) Subject to applicable law, if any person who is or was serving as a
director, officer or employee of another company or entity at the
request of the corporation is made a party to a proceeding because
the person is or was serving as a director, officer or employee of
the other company or entity, the corporation shall indemnify the
person, or the estate or personal representative of the person, from
and against all liability and expenses incurred by the person in the
proceeding (and advance to the person expenses incurred in the
proceeding) if:
(i) the person is or was appointed to serve at the request of the
corporation as a director, officer or employee of the other
company or entity in accordance with Indemnification
Procedures approved by the Board of Directors of the
corporation; and
(ii) with respect to the matter(s) giving rise to the proceeding:
(a) the person conducted himself or herself in good faith; and
(b) the person reasonably believed that his or her conduct was at least not
opposed to the corporation's best interests; and
(c) in the case of any criminal proceeding, the person had no reasonable cause
to believe that his or her conduct was unlawful; and
(d) if the person is or was an employee of the other
company or entity, the person acted in the ordinary
course of the person's employment with the other
company or entity.
Item 29. Principal Underwriter
(a) Orchard Series Fund
(b) Directors and Officers of One Orchard.
<TABLE>
Position and Offices
<S> <C> <C> <C> <C> <C> <C>
Name Principal Business Address with Underwriter
Steven H. Miller 8505 E. Orchard Road President and
Englewood, Colorado 80111 Director
Alan D. Mac Lennan 8505 E. Orchard Road Director
Englewood, Colorado 80111
Stanley Kenyon Bldg. 400, Suite 1200 Director
1000 Abernathy Road
Atlanta, GA 30328
Glen R. Derback 8515 E. Orchard Road Treasurer
Englewood, Colorado 80111
Beverly A. Byrne 8515 E. Orchard Road Secretary
Englewood, Colorado 80111
Net
Name of Underwriting Compensation
Principal Discounts and on
Brokerage
Underwriter Commissions Redemption Commissions Compensation
One Orchard -0- -0- -0- -0-
</TABLE>
Item 30. Location of Accounts and Records
All accounts, books, or other documents required to be maintained by
Section 31(a) of the 1940 Act and the rules promulgated thereunder are
maintained by the Registrant through GWL&A, 8515 E. Orchard Road, Englewood,
Colorado 80111.
Item 31. Management Services
Not Applicable.
Item 32. Undertakings
(a) Registrant undertakes to file a post-effective amendment to
this Registration Statement as frequently as is necessary to
ensure that the audited financial statements in the Registration
Statement are never more than 16 months old for so long as
payments under the variable annuity contracts may be accepted.
(b) Registrant undertakes to include either (1) as part of any
application to purchase a contract offered by the Prospectus, a
space that an applicant can check to request a Statement of
Additional Information, or (2) a postcard or similar written
communication affixed to or included in the Prospectus that the
applicant can remove to send for a Statement of Additional
Information.
(c) Registrant undertakes to deliver any Statement of Additional
Information and any financial statements required to be made
available under this form promptly upon written or oral request.
(d) GWL&A represents that the fees and charges deducted under the
Contracts, in the aggregate, are reasonable in relation to the
services rendered, the expenses expected to be incurred, and the
risks assumed by GWL&A.
(e) Insofar as indemnification for liability arising under the Securities Act
of 1933 may be permitted to directors, officers and controlling persons of
the registrant pursuant to the foregoing provisions, or otherwise, the
registrant has been advised that in the opinion of the Securities and
Exchange Commission such indemnification is against public policy as
expressed in the Act and is, therefore, unenforceable. In the event that a
claim for indemnification against such liabilities (other than the payment
by the registrant of expenses incurred or paid by a director, officer or
controlling person of the registrant in the successful defense of any
action, suit or proceeding) is asserted by such director, officer or
controlling person in connection with the securities being registered, the
registrant will, unless in the opinion of its counsel the matter has been
settled by controlling precedent, submit to a court of appropriate
jurisdiction the question whether such indemnification by it is against
public policy as expressed in the Act and will be governed by the final
adjudication of such issue.
<PAGE>
SIGNATURES
Pursuant to the requirements of the Securities Act of 1933 and the
Investment Company Act of 1940, the Registrant has duly caused this
Post-Effective Amendment No. 6 to its Registration Statement on Form N-4 to be
signed on its behalf, in the City of Englewood, State of Colorado, on this 26th
day of February, 1999.
RETIREMENT PLAN SERIES ACCOUNT
(Registrant)
By: /s/ William T. McCallum
William T. McCallum, President and
Chief Executive Officer of Great-West
Life & Annuity Insurance Company
GREAT-WEST LIFE & ANNUITY
INSURANCE COMPANY
(Depositor)
By: /s/ William T. McCallum
William T. McCallum, President and
Chief Executive Officer
As required by the Securities Act of 1933, this Registration Statement
has been signed by the following persons in the capacities with Great-West Life
& Annuity Insurance Company and on the dates indicated:
<TABLE>
<S> <C> <C> <C> <C> <C> <C>
Signature and Title Date
/s/ Robert Gratton
February 26th, 1999
Director and Chairman of the Board
(Robert Gratton)
/s/ William T. McCallum
February 26th, 1999
Director, President and Chief
Executive Officer (William T. McCallum)
Signature and Title Date
/s/ Glen Ray Derback
February 26th, 1999
Vice President and Controller
(Glen Ray Derback)
/s/ James Balog *
February 26th, 1999
Director, (James Balog)
/s/ James W. Burns* February 26th, 1999
Director, (James W. Burns)
/s/ Orest T. Dackow* February
26th, 1999
Director, (Orest T. Dackow)
_______________________________ ___________, 1999
Director, (Andre Desmarais)
/s/ Paul Desmarais, Jr. * February
26th, 1999
Director, (Paul Desmarais, Jr.)
/s/ Robert G. Graham* February
26th, 1999
Director, (Robert G. Graham)
/s/ N. Berne Hart*
February 26th, 1999
Director, (N. Berne Hart)
Signature and Title Date
/s/ Kevin P. Kavanagh* February
26th, 1999
Director, (Kevin P. Kavanagh)
/s/ William Mackness* February
26th, 1999
Director, (William Mackness)
/s/ Jerry Edgar Alan Nickerson*
February 26th, 1999
Director, (Jerry Edgar Alan Nickerson)
/s/ P. Michael Pitfield*
February 26th, 1999
Director, (P. Michael Pitfield)
____________, 1999
Director, (Michel Plessis-Belair)
/s/ Brian E. Walsh*
February 26th, 1999
Director, (Brian E. Walsh)
By: /s/ D.C. Lennox February
26th, 1999
D.C. Lennox
*Attorney-in-fact pursuant to Powers of Attorney filed with the Registration
Statement on September 13, 1994 and Post-Effective Amendment No. 2 to this
Registration Statement.
</TABLE>
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