Pay Period End Date:
Funds for this contribution should be transferred to the program providers within three to five business days from the date of this update. Your provider may require several additional days to process the allocation and post the funds to your account.
The Dept. of Higher Education (DHE), as the Plan’s Administrator, will not extend VALIC’s contract as a Provider under the Optional Retirement Program (ORP). While the termination is effective immediately, VALIC’s role under the ORP will be phased-out over the course of 2019.
The Plan will not accept any new ORP enrollments for VALIC.
However, all other aspects of VALIC’s role in the ORP will remain unchanged as we make our way through this process.
Participants may continue current contributions to their ORP account with VALIC.
The DHE’s decision to release VALIC from the ORP is the first major step in the Commonwealth’s efforts to gradually revise the ORP’s structure away from the “multi-Provider” approach of the 1980s and 1990s, to an efficient contemporary approach.
The DHE is working with VALIC on an exit plan that will be implemented over the course of this year.
Formal notice of this change will be mailed directly to all VALIC participants under the ORP in the near future.
Details of the exit plan and its implementation will be reported via direct correspondence with participants, and on this web site, as a common resource for everyone.
SPECIAL 403(b) NOTE: VALIC remains a vibrant partner in the Commonwealth’s 403(b) Supplemental Retirement Plan. The DHE’s action under the ORP has no effect on participants’ elections for VALIC under the 403(b) plan.
Retirees Who Purchase GIC Retiree Insurances
The Department of Higher Education will contact you directly to work-through this transition; ensuring there is no interruption in your insurance coverages. The DHE has already begun working with the GIC on this matter.
As noted above, details of these changes are forthcoming.