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This report is intended for use by the management of the Variable Annuity Life Insurance Company ("VALIC") and its subsidiaries.
VALIC Retirement Services Company ("VRSCO") and VALIC Financial Advisors, Inc. ("VFA"), its user entities, and the independent
auditors of its user entities, and is not intended and should not be used by anyone other than these specified parties.
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Plan Sponsor Remittance Instructions
Plan sponsors send retirement plan contributions and payroll deducted loan payments on behalf of their
participants. Additionally, if specific conditions are met, the plan sponsors may request a transfer/rollover of
assets directly from another retirement plan provider.
Electronic Instructions
Web-based services enable plan sponsors to transmit contributions, loan payments and processing instructions
over the Internet. These systems use encryption technology to secure information. Some of these systems also
allow the plan sponsors to customize the access of their users. In some instances, smaller plan sponsors elect
to update a remittance online to submit their processing instructions. Other plan sponsors elect to create a file
directly from their payroll system to be submitted to VALIC via the Internet.
While all electronic instructions are sent via the website, payments may be remitted as follows:
Debit Automated
Clearing House (ACH)
A debit from the plan sponsors’ pre-designated bank account and credit directly to
the VALIC or the VRSCO bank account on the same business day if approved prior
to the close of the New York Stock Exchange, typically 3 p.m. CST. Debit ACH is
authorized by the plan sponsors or by VALIC or VRSCO as per the plan sponsors’
request; all requests are transmitted via the Federal Reserve’s ACH network. Debit
ACH is the preferred method for remittances by VALIC or VRSCO.
Credit Automated
Clearing House (ACH)
A plan sponsor-initiated transfer of funds from their bank account to credit
the VALIC or the VRSCO bank account. The transaction is transmitted via the
Federal Reserve’s ACH network and is settled on the date identified by the plan
sponsor. Each remittance should be for only one plan sponsor and must have the
plan sponsor name and plan identifier assigned by VALIC or VRSCO included in
the remittance.
Wire Transfer
The same-day transfer of funds from a plan sponsor's bank account to the VALIC
or VRSCO’s bank account over the Federal Reserve Communications System
(Fedwire). Plan sponsors are required to include the plan sponsor name and plan
identifier assigned by VALIC or VRSCO in the wire descriptive text.
Checks
Checks are sent to a specific VALIC or VRSCO lockbox at JP Morgan Chase,
or Bank of America, third party providers.
Paper Instructions
With proper authorization, certain smaller plan sponsors may elect to remit instructions via paper. These
instructions are sent with a check directly to the VALIC lockbox. To facilitate good order processing, the
remittance must balance to the processing instructions. The paper processing instructions are reviewed to
identify the required information and are manually entered into the record keeping system.
Contribution Processing
Remittances are set up systematically on the record keeping system daily by a file transmission received from JP
Morgan Chase Bank, based on the cash receipts from each lockbox
(3.2)
. Remittances are set up on the record
keeping system by Accounting Operations for cash receipts received from The Bank of New York Mellon (BoNY)
on a daily basis
(3.3)
.
III. Description of the VALIC Defined Contribution Plan Administration System