Supplement to Prospectus Dated May 1, 2000
Supplement dated September 25, 2000
This Supplement should be retained with the current Prospectus for your variable
annuity contract issued by American Skandia Life Assurance Corporation
("American Skandia"). If you do not have a current prospectus please contact
American Skandia at 1-800-SKANDIA.
A. PROPOSED SUBSTITUTION
American Skandia has filed an application with the Securities and Exchange
Commission ("SEC") to substitute the following "Replaced Portfolio/Sub-account"
with the "Substitute Portfolio/Sub-account":
<TABLE>
<CAPTION>
--------------------------------------------------------- ---------- ---------------------------------------------------------------
REPLACED PORTFOLIO/SUB-ACCOUNT SUBSTITUTE PORTFOLIO/SUB-ACCOUNT
--------------------------------------------------------- ---------- ---------------------------------------------------------------
--------------------------------------------------------------- -------- -----------------------------------------------------------
<S> <C>
Alger American MidCap Growth portfolio of The Alger American AST Alger Mid-Cap Growth portfolio of American Skandia
Fund/AA MidCap Growth Sub-account Trust/AST Alger Mid-Cap Growth Sub-account
--------------------------------------------------------------- -------- -----------------------------------------------------------
</TABLE>
As part of the Substitution, American Skandia is seeking permission to allow
transfers from the Replaced Portfolio/Sub-account to any other investment
options available under the Annuity for a period beginning from the date of this
Supplement without the imposition of any transfer fee. Additionally, American
Skandia Life Assurance Corporation will not exercise any rights reserved under
the Annuity to impose additional restrictions on transfers until at least 30
days after the Substitution. Under the proposed substitution, any such transfers
would not count in determining whether the maximum number of free transfers has
been exceeded. Furthermore, under the proposed substitution, the transfer of
Account Value from the Replaced Portfolio/Sub-account to the Substitute
Portfolio/Sub-account would likewise not be subject to a transfer fee nor count
in determining whether the maximum number of free transfers have been exceeded.
The proposed substitution will not affect your rights or our obligations under
the Annuity. American Skandia will bear any expenses in connection with the
proposed substitution.
Contract Owners with Account Value allocated to the Replaced
Portfolio/Sub-account may remain in the Sub-account until the earliest to occur
of: (1) the date they transfer Account Value out of the Replaced
Portfolio/Sub-account; or (2) the date the proposed substitution is completed.
On or after the date of the substitution, the Replaced Portfolio/Sub-account
will no longer exist. Contract Owners will no longer be able to allocate Account
Value to the Replaced Portfolio/Sub-account after the substitution date.
B. INVESTMENT OBJECTIVES AND POLICIES
A short description of the investment objective (in italics) and a short,
summary description of the key policies for the Substitute Portfolio follows.
The AST Alger Mid-Cap Growth portfolio of American Skandia Trust is not
currently available; however, it will be available at the time the Substitution
is effective.
<TABLE>
<CAPTION>
------------------- ---------------------------------------------------------------------------------------- -----------------------
PORTFOLIO
STYLE/ INVESTMENT OBJECTIVES/POLICIES ADVISOR/
TYPE SUB-ADVISOR
------------------- ------------------------------------------------------------------------------------------------ ---------------
------------------- ------------------------------------------------------------------------------------------------ ---------------
<S> <C> <C>
AST Alger Mid-Cap Growth: seeks long-term capital growth. The Fred Alger
Portfolio invests primarily in equity securities, such as Management, Inc.
common or preferred stocks, that are listed on U.S. exchanges
or in the over-the-counter market. Under normal circumstances,
MID CAP the Portfolio invests primarily in the equity securities of
GROWTH companies having a market capitalization within the range of
companies in the S&P MidCap 400 Index. The Portfolio may
invest up to 35% of its total assets in equity security of
companies that, at the time of purchase, have total market
capitalization outside the range of companies in the S&P
MidCap 400 Index and in excess of that amount (up to 100% of
its assets) during temporary defensive periods.
------------------- ------------------------------------------------------------------------------------------------ ---------------
</TABLE>
GAL3 - SUPP. (09/25/2000)
