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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. Click VALIC.com 32
Group Mutual Fund Product
After transactions are processed through the record keeping system, a series of reconciliation and reporting
procedures are performed by Variable Product Accounting (VPA). This includes daily bank account reconciliation
of all investment related transactions and daily NSCC settlement. In addition, Accounting Operations handles all
cash management functions for the group mutual fund product which includes the following:
> > Coordination of resolution with VALIC Operations of any open items on the record keeping system and
bank account reconciliation.
> > Receipt and resolution of insufficient remittance/payment checks.
> > Monitoring and clearing of disbursement errors.
> > Production of manual checks.
As a management oversight, AIG Federal Savings Bank personnel reviewmonthly bank statements and open items.
Client Reporting
VALIC uses a third-party vendor to prepare and mail quarterly account statements to participants. A reconciliation
is performed of the number of participants sent to the vendor with the number of participants processed.
Additionally, the vendor sends VALIC electronic copies of the quarterly account statements which are maintained
in COLD (8.3). VALIC audits a sample of quarterly account statements prior to authorizing the release of
statements for mailing or online viewing (8.4), (10.5).
A number of plan reports are available to plan sponsors on or by mail. Reports are generally at the plan
level, for a monthly, quarterly, or annual period, to assist the plan sponsor in administering their retirement plans.
Annual regulatory reporting is also provided as required by state/federal regulations via mail, overnight delivery
service, or .
A report scheduler is utilized to systematically generate reports and track deliverables validating a timely delivery.
The GroupManager database is used to track plan report due dates to verify that the reports are generated (8.1).
A systematic process is used to confirm that reports are provided in balance. Plan reports are reconciled and
corrected, if necessary, prior to making them available to the plan sponsors (8.2).
Asset Management
Asset management represents the process and systems used in recording and monitoring of the investments
underlying the retirement plan accounts. For both the group mutual fund and the annuity products, asset
management is administered by VPA.
Plan sponsors select the investment vehicles amongst which participantsmay allocate their funds.Within an annuity
contract, VALIC offers investment choices fromfixed investment accounts to variable accounts or combination (fixed
and variable) contracts.Within the groupmutual fund platformVALIC typically offers a combination of mutual funds
and one or more fixed annuity or stable value options as permitted for the respective plan.
For both the annuity and group mutual fund products the available investment alternatives may also include a self-
directed brokerage account established with Charles Schwab (Schwab PCRA). Within an annuity contract, the plan
sponsor or other fiduciary may restrict the availability of one or more of the underlying investment options to the
participant. Within the group mutual fund platform, the plan fiduciary may select from a wide array of investment
options with which VALIC has, or can obtain, appropriate agreements. With the Schwab PCRA, participants
generally may select from among mutual funds not already available under the plan.
III. Description of the VALIC Defined Contribution Plan Administration System