The Optional Retirement Plan (ORP), which is an alternative to the state defined benefit plan, provides you with greater control over your retirement plan assets. Basic features include the following:

• May be chosen (irrevocably) by certain eligible titles during the initial period of eligibility

• Defined contribution plan

• You manage your investments

• Account growth based on performance of your selected investment portfolio

• Vested (including employer contributions) after one year and a day

• No disability benefit

Investment options

The investment options in this plan represent mutual funds invested primarily in the three major asset classes (stocks, bonds and short-term investments). You might want to consider these options if you are comfortable diversifying your investments on your own or with the assistance of your financial and/or asset allocation tools.

Self-directed brokerage

The self-directed brokerage option, offered through the Schwab Personal Choice Retirement Account^® (PCRA), opens a gateway to thousands of additional mutual funds for participants in all University of Texas System Retirement Programs. This broad spectrum of investments makes it a good choice for more sophisticated investors who understand how to research and evaluate individual investments.

Through Schwab’s Mutual Fund Marketplace^®, you’ll have easy access to mutual funds in all asset categories — from aggressive international funds and historically solid-performing index funds to income-generating bond funds. You can request a prospectus by calling Schwab at 1-800-435-4000. Please read the prospectus(es) carefully before investing. Investors should carefully consider information contained in the prospectus, including investment objectives, risks, charges and expenses.

Schwab’s standard transaction fee will be charged on each redemption of fund shares bought with no transaction fee and held for 90 days or less. Schwab reserves the right to assess Schwab’s standard transaction fees in the future should short-term trading become excessive. Schwab reserves the right to change the funds made available without transaction fees. Depending on the terms of your retirement plan, your Schwab Personal Choice Retirement Account^® is a custodial account established under Section 401(a), Section 403(b)(7) or Section 457 of the Internal Revenue Code of 1986, as amended. Your rights under the account are governed by the terms of your account or your employer’s plan.

To view or print a prospectus, visit www.valic.com/utsystem and look to the right-hand side of the screen. Click the appropriate link inside the box titled "Prospectuses and Other Important Materials." Click on "Funds" in Quick Links, and funds available for your plan are displayed. The prospectus contains the investment objectives, risks, charges, expenses and other information about the respective investment companies that you should consider carefully before investing. Please read the prospectus carefully before investing or sending money. You can also request a copy by calling 1-800-448-2542.