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Prepared for Springfield R-XII School District
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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.
c. Annuities.
If a participant elects to receive annuity benefits on a periodic basis, benefit payments will
commence on the first of the month following receipt of notice, provided that notice is
received in VALIC's Home Office 31 days prior to the commencement of benefit payments.
The first payment will be sent either via EFT or a check can be issued directly to the
participant by the tenth day after the payment date. All subsequent payments will be sent
either via EFT or a check can be mailed in time to arrive by the first day of the month.
The following are just a few of the many annuity options that are available:
Monthly Income for Life – The participant will receive a lifetime income with all monthly
payments ceasing at his or her death.
Monthly Income for Life with a Designated Period – With this option, monthly income is
guaranteed for the life of the participant. A participant may also elect a specified period
between five and 20 years, so that should he/she die prior to the end of the term, a
designated beneficiary receives the remainder.
Unit Refund Life Annuity – Annuity payments are payable monthly during the
participant’s lifetime. Under the unit refund annuity option, should the participant die
prior to the time that the total number of units credited to his or her account have been
paid out, the beneficiary will receive a payment equal to the then cash value of the
remaining unpaid units.
Joint and Last Survivor Annuity – The participant and his or her survivor receive a
lifetime income. Payments under this option continue until the death of both persons.
Payments for a Period of Years – Selecting this option, the participant receives monthly
payments for a selected number of years, generally between five and 30. Payments
under this option are guaranteed for the period of years selected and will be paid to the
spouse or designated beneficiary if the participant dies before the period is complete.
d. Rollovers to another plan or an IRA.
Participant requests to transfer monies to another carrier or an IRA would be made by
completing a Rollover/Transfer Out Request Form. Rollover and transfer requests are
typically processed within two business days after VALIC receives the completed written
request in good order.
e. Required minimum distributions.
VALIC's recordkeeping system identifies those participants who may be required to begin
receiving minimum distributions. If client verification of payees is desired, VALIC forwards a
list to the client contact for verification purposes. VALIC's system calculates a minimum
distribution amount based on the account balance at the end of the prior plan year by using
the appropriate IRS tables and rates.