Features & Terms of the “November 12 Sweep”

Any ORP assets remaining at VALIC at the close of business on November 4, 2019 will be swept to the default Provider, TIAA, on November 12, 2019.

If the DHE “sweeps” your VALIC assets to TIAA, then you should understand the following terms of this transaction:

1. New Account

• The DHE will open an account on your behalf and transfer your ORP assets from VALIC to TIAA (see #5).
• The account will be issued under TIAA’s Retirement Choice Annuity (RC).
• We will draw basic information from your VALIC account to establish your account at TIAA.

2. Beneficiaries

• If you do not have an existing Retirement Choice Annuity at TIAA, VALIC will provide your beneficiary designations for TIAA to record for your new ORP account.

• If you already have a Retirement Choice Annuity at TIAA, your beneficiary on file will be used for you new account regardless of the designation VALIC maintains. You must access your new TIAA account online to update your beneficiary designations for this new ORP account.

3. Investment Allocation

• ORP assets at VALIC will be moved to and invested in the Lifecycle Fund suited to your current age (see #5).
• Assets may be transferred out of the Lifecycle Fund at any time.
• If you currently contribute to the ORP, then all contributions to your account will also be allocated to the age-appropriate Lifecycle Fund at TIAA.
• Investment allocation of future contributions can be changed anytime through your online TIAA account.
• Assets in VALIC’s Fixed Interest Option will be swept to TIAA’s Traditional Account which provides fixed interest (see #5 for details).

4. Change Providers

• Once your default account at TIAA has been established, you can transfer to Fidelity at any time.
• Assets allocated to TIAA’s Traditional Account can only be transferred to another investment fund from your Retirement Choice Annuity over a period of 74 monthly installments. It cannot be transferred to Fidelity in a single sum.

5. VALIC’s Fixed Account Plus Fund & TIAA’s Two Fixed Annuities

TIAA offers its Traditional Account, which pays fixed interest, under two products: Retirement Choice Annuity and Group Retirement Annuity.

Sweep Schedule

If you are currently employed by the Commonwealth, your assets in the VALIC Fixed Account Plus and Fixed Interest Option will be liquidated over five annual installments. Each year, the DHE will sweep the Fixed Account Plus and Fixed Interest Option assets to TIAA’s Traditional Account under your Group Retirement Annuity account using the schedule below. Learn more about assets in VALIC’s Fixed Account Plus and Fixed Interest Option.

If you terminate employment or die during the course of the five-year liquidation, you or your beneficiaries may draw from these assets at VALIC and TIAA.

If you are currently employed by the Commonwealth and DO NOT WANT your Fixed Account Plus assets swept to TIAA’s Group Retirement Annuity, then you must open an account with either TIAA or Fidelity on your own and transfer your assets from VALIC to your new Provider account BEFORE October 11.

• Call VALIC client care center at (800) 448-2542 and speak to a Retirement Education Center representative
• Request two forms (Transfer/Rollover out form and a Systematic Withdrawal form which is only required if you have assets in the fixed investment that is limited to 20% per year for transfers)
• Send both forms to VALIC for processing. Forms must be in good order for processing and received by VALIC no later than October 11, 2019

If you are not currently employed by the Commonwealth, then 100% of your Fixed Account Plus assets will be transferred to TIAA’s Traditional Account in a single sum.