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written approval from the Plan Administrator to distribute funds and report a taxable
distribution to the alternate payee, based on the plan sponsor's administrative services
agreement and the applicable tax law.
When the alternate payee is also a participant of the same plan with his/her own account, a
separate alternate payee account is established for the participant. Alternate payee funds
are not comingled with existing accounts.
h. Investment allocations and reallocations within the contract or account
A participant can reallocate funds by percentage or dollar amounts on any business day
through VALIC’s Voice Response System or website. If the participant initiates the
transaction prior to the close of the New York Stock Exchange (normally 4:00 p.m. Eastern
Time), it is processed that business day using closing prices from that day. If the participant
initiates the transaction after the close of the stock market, it is processed on the next
business day.
7. Describe in detail how your system processes loans, including but not limited to the
following:
a. Do you have paperless loan capabilities? If so, describe.
b. Describe the flexibility in your loan repayment processing (i.e., additional
payments, multiple loans, missed payments).
c. How do you handle delinquent and/or defaulted loans?
Yes.
Paperless Loans
Loans initiated at
VALIC.comare completely paperless for any plan that does not require
spousal consent for distributions. To obtain a loan online, a participant first accesses the
loan modeling function to select the type and amount of loan desired, and then chooses
whether to proceed with that loan via an electronic signature. If the loan is requested prior to
close of the New York Stock Exchange, it is processed that same business day and the
direct deposit (or hard copy check, if desired) of loan proceeds, loan note, disclosure
statement, and amortization schedule are distributed to the participant the following
business day.
Our website also offers the following loan transactions and information:
Loan balance information
Loan modeling
Loan status
Loan history
Loan payoff amount
Processing
Once VALIC receives the completed loan agreement, our loan specialists verify that all
specified requirements have been met before processing the loan. If the loan is requested
online or over the phone prior to close of the New York Stock Exchange, it is processed that