Plan Details

Text Size A A A
Plan Features

Portfolio Director® Fixed and Variable Annuity

Among the many challenges you face when saving for your retirement is finding a way to help boost the earning potential of your long-term investments. You need a broad selection of investment options and the unique power of tax-advantaged investing. And you need the flexibility to combine fixed and variable investment options in a properly diversified portfolio that suits you.

The power of tax-advantaged investing

As a participant in any of the powerful retirement savings plans that the state of New Jersey offers, you can benefit from two important tax advantages: pre-tax contributions, which enable you to reduce current income taxes while you save; and tax-deferred growth, which helps your account grow faster since interest earnings aren't taxed until withdrawal, usually at retirement.

Please remember that annuities are long-term investments and income taxes are payable upon withdrawal. Federal withdrawal restrictions and tax penalties may apply to early withdrawals. Additionally, investments in the variable options will fluctuate so that an investor's units, when withdrawn, may be worth more or less than the original cost.

Well-known investment advisors and sub-advisors

You'll have access to the investment expertise of widely recognized fund managers and subadvisers such as Dreyfus, Templeton, T. Rowe Price and VALIC.

No initial sales charges

With Portfolio Director, your money goes to work for you right away. No initial sales charges reduce your contributions. So, all of your contributions are directed to the investment options you choose.

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

No initial account maintenance fees

You pay no account maintenance fees when you contribute to Portfolio Director.

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

Online account access

VALIC's online account access provides our clients with easy access to more retirement plan information and transaction services than ever. With just the touch of a finger or a voice command, VALIC clients can conveniently and efficiently access investment performance and account values, transfer account values among investment options, reallocate future contributions and order forms for a variety of transactions.

In addition, Personal Deliver-e, VALIC's Internet-based notification service provides an alternative to receiving account information by mail by providing fast, convenient, secure, reliable and environmentally friendly access to annuity account statements, tax forms and regulatory reports right online. You may enroll by logging in to VALIC Online and following the simple enrollment instructions or by calling the VALIC by Phone and speaking with a Client Service Professional.

VALIC offers all clients these extensive account services by telephone and on the Internet.

• VALIC by Phone at 1.800.448.2542

• VALIC Online at https://my.valic.com/online/

• Electronic Delivery Service

Access to your money

Access to your money, or liquidity, varies widely among various types of investments. Federal tax laws impose withdrawal restrictions on contributions and credited interest and earnings on or after January 1, 1989 for certain plans. When federal law and your plan permit access to your funds, the liquidity features of Portfolio Director guarantee you access ... without incurring VALIC charges.

No-cost transfers to other providers

Portfolio Director offers enhanced transfer options. You may transfer up to 20% of the accumulated account value of Fixed Account Plus each contract year to another approved provider at no cost.

No-cost withdrawals and surrenders

When pre-retirement withdrawals are permitted, there are no VALIC charges. Your financial advisor can explain in more detail the specific withdrawal privileges available to you.

Please remember that annuities are long-term investments and income taxes are payable upon withdrawal. Federal withdrawal restrictions and tax penalties may apply to early withdrawals.

Tax-free loan provisions

VALIC's tax-free loan provisions enable you to use a portion of your accumulated account value without permanently reducing your account balance ... and without incurring federal tax penalties for early withdrawal. The minimum loan amount is $1,000.

Loans may be subject to employer plan provisions and regulations. A $50 loan fee may apply and be considered part of the total loan amount.

Investment flexibility

You can invest in one or a number of Portfolio Director options at a time. And you're not locked into today's decision forever. Portfolio Director's flexible investment features include:

• No-cost transfers among investment options — you may transfer your investment assets among the wide array of Portfolio Director investment options, without charge. You may also transfer, without an VALIC charge, part or all of your available account balances from other companies. You may wish to transfer other accounts to VALIC if you want to diversify your retirement plan assets or gain access to an expanded array of investment and distribution options. See VALIC's Investor Trading Policy for transfer limitations.

• Systematic Transfers of Value (TOV) — participants may, with a single authorization, establish a series of periodic transfers from one investment option to up to six other investment options. With systematic TOV, you can transfer funds automatically on a weekly, biweekly, monthly, quarterly, semi-annual or annual basis. And you have a choice of four transfer methods: interest only, dollar amount, percentage amount or total systematic transfer. For a more complete explanation of the systematic TOV options available to you, contact your local financial advisor.

Portability

In today's mobile society, portability is a necessity to the continuity of your retirement plan. And VALIC doesn't require you to "cash in" your contract when you terminate employment. So, if you move to a different higher education institution, it is likely you will have access to the same VALIC investment options and features, since VALIC is licensed in all 50 states and the District of Columbia. This enables you to maintain the continuity of your long-term investment program.

Payout options

When you are ready to retire, Portfolio Director provides you with a wide range of payout options that include, but are not limited to:

Annuitization options

• Lifetime annuity (payments that VALIC guarantees you cannot outlive). Note that guarantees are subject to the claims-paying ability of the insurance company.

• Lifetime annuity, plus guaranteed periods for beneficiaries.

• Joint and survivor annuity.

• Designated period.

• Designated amount.

• Unit cash refund annuity.

Withdrawals

• Partial withdrawals

• Systematic withdrawals

Lump-sum distribution

Guaranteed death benefits

In the event of your death prior to annuitization, Portfolio Director offers guaranteed death benefits 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 and outstanding loans. Guarantees are subject to the claims-paying ability of the insurance company.

• For your investment in the fixed options
Your beneficiary will receive the greater of either the value of your fixed options, or the sum of your contributions to fixed options, less any withdrawals, outstanding loans or transfers to variable options. Also, during the accumulation phase, fixed options earn competitive interest at a rate that is guaranteed never to be less than 3%.

• For your investment in the variable options
If you die before age 70, your beneficiary will receive the greater of either the value of your variable options, or the sum of your contributions to the variable options (less withdrawals, outstanding loans or transfers to a fixed option), plus interest at an annual rate of 3%.

Also, in the event of your death, your death benefit proceeds pass directly to your named beneficiary. This generally avoids the cost and delays of probate. Your beneficiary can choose to withdraw — without VALIC charges — the entire account balance, or leave all or a portion of it on deposit. If an account balance is left on deposit, the beneficiary can make withdrawals whenever he or she chooses, subject to Internal Revenue Code requirements, with no VALIC charges.

To obtain a Portfolio Director contract and underlying fund prospectuses, visit www.valic.com or call 1-800-448-2542 (press 1, then 3). The prospectuses contain the investment objectives, risks, charges, expenses and other information about the respective investment company that you should consider carefully before investing. Please read the prospectuses carefully before investing or sending money. Applicable to Portfolio Director Fixed and Variable Policy Form series UIT-194, UITG-194 and UITG-194P.