CSD-RT RFP Recordkeeping_Administration Services Response 3-

Prepared for Springfield R-XII School District

compliance. VALIC also actively participates in design and testing of system enhancements

made necessary by regulatory changes. VALIC administers the plan document according to

its terms, and updates our plan documents to reflect legislative or regulatory changes,

enabling VALIC to monitor compliance and help the plan sponsor meet federal regulations

with respect to its plan. We also perform periodic audits to verify that all necessary forms

and authorizations are on file.

4. Do you provide one main contact for the daily record keeping and administrative

needs of this plan?

Yes. Richard Counts, Vice President, Business Development works in coordination with the

relationship manager as the point of contact for the plan sponsor’s senior staff to ensure that

VALIC delivers on our overall commitments to the plan sponsor in terms of onsite financial

education and retirement planning services, a well-diversified, competitively priced fund line-

up, seamless implementation, and ongoing administrative services including regular,

accurate reporting of plan activity to the plan sponsor.

5. Do you provide daily valuation? Describe in detail how your system allocates

earnings.

es. VALIC individual participant accounts are valued daily.

For our fixed investment options, interest is credited on a daily basis at an annual effective

yield. VALIC supports both unit and share accounting. Unit values and share prices are

loaded onto the system on a nightly basis. Our preferred method is share accounting.

6. Describe in detail, including timing, how your systems process the following:

a. Lump-sum distributions of account and/or contract surrender. Specify whether

your products require this for terminated/retired participants.

VALIC will process lump-sum distributions in accordance with plan provisions and IRS

guidelines. Paperless account distributions are available for amounts less than $25,000. The

participant can execute the transaction on the VALIC participant website or if they prefer

they can call our toll free customer care line and speak with a Client Service Specialist, and

funds can be deposited via EFT or a check can be issued. Lump-sum or partial distributions

are typically processed the next business day after VALIC receives the completed request in

good order.

b. Periodic payments/installments.

Systematic withdrawal payments are processed in accordance with the option selected by

the participant. Participants have the option to receive periodic distributions from their

accounts. Participants have the flexibility of selecting a specific dollar amount, a specific

percentage amount, substantially equal periodic payments, or a five-year payment method.

The distributions are made pro-rata across investment options unless a participant elects

systematic payment from a specific investment option, in which case such an election will be

honored in lieu of pro-rata.