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VALIC employs a team of professionals educated in the intricacies of retirement plan
design and compliance. These individuals are available to provide general guidance
relating to plan compliance issues at no additional cost to the plan sponsor.
VALIC is supported by a legal department composed of attorneys and tax
professionals with significant expertise in ERISA and tax laws and 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) and 457; as
well as non-qualified deferred compensation plans, IRAs and tax-deferred annuities
under section 72.
f. How are expenses adjusted if a sizable number of participants are added or
removed from the plan (such as either acquisition or divestiture or partial plan
termination)?
VALIC’s fees are based on a number of plan characteristics, including plan design,
service needs, anticipated participation, and anticipated asset levels. This item is
negotiated between VALIC and the CSD-RT on an ongoing basis.
g. Do you offer any expense arrangement whereby the plan shares in your firm’s
upside potential as participants and plan assets increase over time?
Yes. VALIC has taken into consideration plan asset growth over the term of the
service agreement in our fee quote. VALIC works with the CSD-RT to determine if the
Trust becomes eligible for any lower administrative costs to asset growth.
h. Identify any other out-of-pocket expenses that are not covered on the
Service/Activity listing (e.g., postage, handling, supplies, servicing
commissions) that would be charged to the plan, plan participants or us.
Please be specific.
Loan Fees
A one-time administrative and maintenance fee of $60 is assessed to all participants
who take loans from their accounts.
Guided Portfolio Services (GPS) Fees
GPS Portfolio Advisor
There is no fee for participants who elect to enroll in our advice program, GPS
Portfolio Advisor.
GPS Portfolio Manager
Only those participants enrolling in our managed account program, GPS Portfolio
Manager, will be assessed an asset based fee as described below.
The annualized fees for participants enrolled in our GPS Portfolio Manager program
are as follows:
45 basis points on assets on all assets