108 / 499
Prepared for Springfield R-XII School District
26
12.Can your Firm provide the District with a report of participants utilizing the catch-up
provisions?
VALIC can provide limits monitoring and enforcement of applicable limits across supported
plans.
Retirement Manager automatically monitors basic Internal Revenue Code ("IRC")
contribution limits, age-based catch up, special catch-up limits when applicable to identify
excess deferrals. Retirement Manager monitors the following IRC limits:
403(b) basic limit under 402(g), age-based catch-up and 15-year lifetime cap expansion
457(b) basic limit, age-based catch-up (where applicable) and special catch-up
415 limits
Cross-plan limits for situations when the 402(g) limit applies across multiple plans of the
same employer
Retirement Manager uses data provided and approved by the plan sponsor to determine the
maximum allowable amounts. Retirement Manager monitors the amount(s) contributed to
each plan and determines whether an employee is eligible to utilize certain catch-up
provisions in each plan. Retirement Manager produces online reporting across all plan types
and vendors. With Retirement Manager Limits Monitoring in place, excesses should be
greatly reduced.
In addition, Retirement Manager provides an enforcement module designed to prevent
excess deferrals through a proactive process that systematically reduces and/or stops
excess deferrals from occurring. The process includes plan sponsor and participant
notifications through reports and emails. An additional reactive enforcement process is
designed to be a second IRC limits validation to prevent excess deferrals from occurring
.
13.Describe your in-house legal and compliance support for these services, including
your ability to provide periodic regulatory and compliance updates (not legal or tax
advice) to us.
Legal Support
VALIC’s legal department of attorneys and tax professionals has significant expertise in:
ERISA and tax laws
Regulations associated with retirement programs and plans established under Internal
Revenue Code sections 401(a)/403(a), including:
–
401(k)
–
403(b)
–
408(k)
–
408(p)
–
457
Non-qualified deferred compensation plans
IRAs
Tax-deferred annuities under section 72