The UTSaver Tax-Sheltered Annuity (TSA) Plan is a voluntary retirement program that allows you to make pre-tax contributions to a 403(b) annuity or 403(b)(7) mutual fund custodial account through the convenience of a systematic payroll deduction plan. This program also provides for tax deferred growth of interest and investment earnings, a range of flexible investment options and portability of your personal TSA account.

Summary of plan benefits

The UTSaver TSA Plan with VALIC is a powerful way to save money for your future, and it offers you the following unique advantages:

• You contribute effortlessly and conveniently by automatic payroll deduction

• You contribute before tax withholding is calculated which reduces current income taxes. You should note that annuities are long-term investments and income taxes are payable upon withdrawal. Additionally, federal withdrawal restrictions and a 10% tax penalty may apply to withdrawals prior to age 59½.

• Your employer contributes to the Texas ORP for you

• You decide how to invest all contributions to your account

• Taxes are deferred on interest and earnings while your account grows. You should note that investment values in the variable options will fluctuate so that an investor's units, when withdrawn, may be worth more or less than their original value.

• The plan provides retirement and death benefits.

Tax advantages of the UTSaver TSA Plan

First, since you and your employer contribute before tax withholding is calculated, you are able to save for retirement and reduce your current income taxes. Please note that annuities are long-term investments and income taxes are payable upon withdrawal. Federal withdrawal restrictions and a 10% tax penalty may apply to withdrawals prior to age 59½.

Second, all taxes on interest and earnings are deferred until withdrawal or annuity payments begin, usually at retirement. This means dollars that might have been paid toward income tax remain invested, to continue to grow and earn additional income over time. Note that investment values in the variable options will fluctuate so that an investor's units, when withdrawn, may be worth more or less than their original value.

A wide variety of investment options from well-known advisors

Portfolio Director^®, VALIC's innovative fixed and variable annuity, combines two investment approaches — the guaranteed return of fixed-rate options and the potential for greater return with variable-return investment options. Please note that all guarantees are subject to the claims-paying ability of The Variable Annuity Life Insurance Company (VALIC).

With its wide array of variable options, Portfolio Director gives you the investment choices you need to create a suitable investment program.

No account maintenance charges

You pay no account maintenance charges.

However, other fees may apply to a continued investment in this product and are described in the current prospectus. These fees include Separate Account (mortality and expense risk) fees and Fund Annual Expense charges for variable options. Additionally, surrender charges may apply, depending on your contract.

No-cost transfers among investment options

You can transfer your investment assets among the wide array of Portfolio Director variable investment options at no charge. See VALIC's Investor Trading Policy for transfer limitations.

However, other fees may apply to a continued investment in this product and are described in the current prospectus. These fees include Separate Account (mortality and expense risk) fees and Fund Annual Expense charges for variable options. Additionally, surrender charges may apply, depending on your contract.

No-cost withdrawals and surrenders at separation from service

There are no VALIC charges associated with a distribution from your account at separation of service. Your financial advisor can explain the specific withdrawal privileges available to you and any applicable tax penalties for early withdrawal.

Remember that annuities are long-term investments and income taxes are payable upon withdrawal. Federal withdrawal restrictions and a 10% tax penalty may apply to withdrawals prior to age 59½.

Portability

VALIC is licensed in all 50 states and the District of Columbia. So, if you should move to another state, a financial advisor will be nearby to help you keep your retirement plan on track.

Enrollment

It's easy to join in the UTSaver TSA with VALIC. Just follow the simple steps in the UTRetirement Manager Web site or contact a financial advisor.

Contributions to your account

All contributions will be deposited into your UTSaver TSA account after every payroll period. You may contribute as little as $25 per pay period or as much as 100% of your TSA eligible compensation up to the maximum IRS limit. Your financial advisor can assist in determining the contribution amount that best fits your personal circumstances and financial plans.

Vesting

Vesting refers to the length of service required for you to own the money deposited into your account. You are always 100% immediately vested in your own contributions. You are 100% vested in your employer's contributions after completing one year and one day of service.

When you retire, or if you terminate employment before retirement, you have the following basic benefit options from which to choose: continuation of tax-deferred accumulation, loan, annuitization, or cash distribution.

• Continuation of tax-deferred accumulation You can choose to leave your account on deposit so that it can continue to accumulate tax-deferred. This way you can maintain investment flexibility while deferring all current tax liability until withdrawal or annuity payments begin, usually at retirement. You will be required under federal law to begin minimum distributions by April 1 of the year following your retirement or age 70½, whichever is later.

• Loans You may take advantage of a tax-free loan from your VALIC TSA account. This provision gives you access to cash without permanently reducing the value of your UTSaver TSA account. If is especially attractive since it's not subject to federal withdrawal restrictions imposed on plan distributions received prior to age 59½ . Your VALIC financial advisor can provide information regarding maximum loan amounts and loan repayment terms.

• Annuity payout When you select an annuity option, you decide what portion, if not all, of your account you would like to use for annuity payout and how frequently you would like to receive payments. Generally, annuity payout can provide an income that VALIC guarantees will last as long as you live. Partial annuity payout can provide an income and continued access to a portion of your retirement savings. With annuity payout, there are many payment options from which to choose. Taxes are payable on annuity payments as they are received.

• Cash distribution You can receive all or any portion of your account's current value as a cash distribution. However, if you choose this option, the amount withdrawn is immediately subject to federal income taxes and may be subject to federal early withdrawal tax penalties.

• Guaranteed death benefit

In the event of your death prior to annuity payout, Portfolio Director offers a guaranteed death benefit to your beneficiary. Whether you contribute to fixed or variable investment options, VALIC guarantees that your beneficiary will never receive less than the amount you contributed, less any prior withdrawals or loans. Note that all guarantees are subject to the claims-paying ability of The Variable Annuity Life Insurance Company (VALIC).

To obtain a Portfolio Director prospectus and underlying fund prospectuses, visit www.valic.com or call 1-800-448-2542 and follow the prompts. The prospectuses contain the investment objectives, risks, charges, expenses and other information about the respective investment companies that you should consider carefully before investing. Please read the prospectuses carefully before investing or sending money. Policy Form series UIT-194, UITG-194 and UITG-194P.