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Frequently Asked Questions

Q: How is a defined contribution plan, like the State Optional Retirement Plan (ORP), different from a defined benefit plan, like the SCRS?

A: In defined contribution plans, like the State ORP, the contributions are defined, but not the benefit. The benefit is determined by the amount of total contributions plus earning. The benefit is based on the combination of pre-determined employee contributions (6.25% of salary), pre-determined employer contributions (5% of salary), and the earnings on those contributions. Therefore, the contributions plus the rates of return on the contributions determine the future value of the account. However, in a defined benefit plan, like SCRS, the benefit is defined. The benefit is not based on the employee contributions, employer contributions, or earnings. The benefit is based on average salary, service credit, and a formula factor. Contributions and earnings have no direct impact on the retirement benefit because the benefit formula is the determining factor.

Q: Why did South Carolina create the State ORP?

A: Expertise — Provided by world class investment firms.

Choice — It is an alternative to membership in the SCRS.

Control — State ORP gives investment control to ORP participants.

Flexibility — State ORP offers investment and withdrawal flexibility.

Portability — You can take your State ORP accounts with you wherever you live, work, or retire.

Q: When am I fully vested?

A: You are immediately 100% vested on both your contributions and your employer contributions.

Q: What type of investment options does AIG Retirement offer under this plan?

A: AIG Retirement offers 14 world-class mutual funds from Vanguard, PIMCO, American Century and others, as well as a Fixed-Interest Option from VALIC. Please refer to the fund listing for information on each investment option.

Q: How often can I change my investments?

A: There are no transfer restrictions on your AIG Retirement account. (Some ORP vendors may impose transfer restrictions and disintermediation charges).

Q: What is the AIG Retirement by Phone?

A: AIG Retirement by Phone is the automated telephone service for easy account transactions and information. 1.888.568.2542. AIG VRS by Phone is where you are now. You can re-allocate your contributions and access account information on this site.

Q: How can I contact my local financial advisor?

A: If you don't know who your local financial advisor is, simply call AIG Retirement by Phone at 1.888.568.2542 or our Columbia office at 803.743.2020 or 1.800.647.4416. We are here for you.

Q: How often will I receive a statement of my account?

A: Each quarter.

Q: What options do I have when I retire or separate from service?

A: You have a number of flexible options. For example, you could continue your tax deferred accumulation (until Required Minimum Distributions must begin), create a systematic stream of periodic payments, take a partial or full withdrawal, or convert to any of AIG Retirement's lifetime annuity payout options.

Q: How do I enroll?

A: For personal investment counseling and face-to-face enrollment service, simply call your financial advisor. Your local advisor will personally deliver all forms to your payroll office. Call 803.743.2020 or 1.800.647.4416.

Or, you may complete the enrollment form provided by your district office. Be sure to select your investments by entering whole percentages by the funds you want. Also, please complete Form 1104. Then simply mail all the forms to: AIG Retirement, 3710 Landmark Dr., Suite 104, Columbia, SC 29204.

Or, return your completed forms to your payroll office. If you need assistance, simply call 1.888.568.2542. We are here to help you.