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401(a) plan

Plan details

Welcome to your 401(a) retirement plan. Click below to view the features and highlights of your employer’s retirement plan.

The plan highlights are only a brief overview of the plan's features and are not a legally binding document. The information in this section does not modify the terms of the plan and in the event of a conflict, the terms of the plan control.

Take advantage today

Who is eligible?

Any permanent employee will become eligible upon date of hire.  If you are a temporary employee, you must complete the lesser of 750 hours or 100 days of service within a calendar year.  If you participate in the State Employees Retirement System or Public School Employees Retirement System, you are not eligible to participate in this Plan.  

Starting early has its advantages

Mandatory employee contributions

5% of compensation each plan year (July 1 - June 30). 
 

Employer contributions

9.29% of compensation each plan year.
 

Vesting

You are 100% vested in all contributions under the Plan. 

Accessing your money before retirement

Withdrawals

Money can be withdrawn from your Plan in these events:   

  • Retirement or separation from service
  • Your death

In addition, you must begin taking distributions once you reach age 70½ or you retire, whichever is later. 

Bear in mind that income taxes are payable upon withdrawal. Note that you may be able to roll certain distributions over to an IRA or an eligible retirement plan if the plan will accepts rollovers."   

VALIC offers many distribution options, allowing you to tailor your benefits to meet your individual needs. Depending on your employer’s plan provisions, your withdrawal options include: 

  • Receiving installment payments
  • Taking a lump-sum distribution
  • Choosing one of the many annuity options available from VALIC
  • Deferring distributions until a later date (but no later than attainment of age 70½) if you are no longer working for the employer sponsoring the plan, allowing your account to continue to grow tax deferred.

Generally, income taxes must be paid on all amounts you withdraw from your plan. A 10% federal tax penalty for early withdrawal may apply to distributions taken prior to attainment of age 59½ unless an exception applies.  
 

Loans

Tax-free loans make it possible for you to access your account, subject to certain limitations, without permanently reducing your account balance. Defaulted loan amounts (not repaid on time) will be taxed as ordinary income and may be subject to a 10% federal tax penalty if you are under age 59½. 

There is an initial processing fee of $50 and an annual maintenance fee of $30. You may contact your financial advisor for more information about loans.

An array of investment choices

The following funds are available in your retirement plan. They provide you with the flexibility you need to create a suitably diversified portfolio that matches your personal retirement time horizon, investment risk tolerance and investment preferences.  

Fixed-Interest Option Rate 

The Fixed-Interest Option rate to your retirement plan is declared monthly.       
 

 April 2017 Rate: 2.00%

Interest rates are subject to change at the beginning of each calendar month and guaranteed to be at least 2.00% for calendar year 2017. Past performance is no guarantee of future results. For more information about VALIC's fixed account or other investments options, contact your local VALIC financial advisor. 

Policy Form GFUA-504, is a group fixed unallocated annuity, issued by The Variable Annuity Life Insurance Company, Houston, Texas. VALIC declares a portfolio interest rate monthly for the Fixed-Interest Option. That declared portfolio interest rate is guaranteed until the end of the month and is credited to all new and old deposits as well as credited interest. The contractual lifetime minimum guaranteed interest rate is 2.00%. All interest is compounded daily at the declared annual effective rate. VALIC's interest-crediting policy is subject to change, but any changes will not reduce the current rate below the contractually guaranteed minimum or money already credited to the account. All guarantees are backed by the claims-paying ability of The Variable Annuity Life Insurance Company. 

To view or print a prospectus, access, “Prospectuses and Other Important Materials”. The prospectus contains the investment objectives, risks, charges, expenses and other information about the respective investment companies that you should consider carefully before investing. Please read the prospectus carefully before investing or sending money. You can also request a copy by calling 1-800-428-2542.