LA DROP FAQs

Louisiana DROP Frequently Asked Questions

Q 1: Where do I begin?

A: You begin by educating yourself on your employer's defined benefit plan. Understanding your retirement plan at work is a crucial step in retirement planning.

Q 2: When do I have to decide?

A: Employees become eligible for DROP participation upon normal retirement age. There is a window of opportunity in which an employee can enroll. Because of the time it takes to receive all of the information and forms, it usually takes six months to finalize.

Q 3: What choice is right for me?

A: As an employee, you must weigh the benefits of entering DROP versus continuing to work without DROP. For example: Is the DROP balance at the end of participation worth not adding additional years of service to your retirement formula?

Q 4: How will my DROP funds be distributed?

A: Withdrawals can be total or partial. Rollovers to IRAs and other qualified plans are also allowed.

Q 5: Should current market conditions affect my decision?

A: Current market conditions can affect the interest rate on your DROP account. You need to be aware of what your employer's current and past performance has been, compared to other investment vehicles available.

Q 6: What about my overall financial picture?

A: Important financial decisions can't be made in a vacuum. Your DROP decision needs to match your overall financial picture and help you achieve your retirement goals.

Important Notice about Purchasing a VALIC Annuity From Us

To help the government fight the funding of terrorism and money-laundering activities, federal law requires all financial institutions to obtain, verify, and record information that identifies each person who purchases certain annuity products. What this means for you: When you purchase certain annuity products from us, we will ask for your name, address, date of birth and other information that will allow us to identify you. We may ask to see your driver's license or other identifying documents.

Annuities and insurance products are offered by The Variable Annuity Life Insurance Company (VALIC), AIG Annuity Insurance Company, AIG-affiliated insurance companies or other approved companies. Each underwriting company is financially responsible for its own insurance products.

Securities and investment advisory services are offered by AIG Retirement Advisors, Inc., member FINRA, SIPC and an SEC-registered investment advisor.

AIG Retirement is the marketing name for the group of companies comprising AIG Retirement Advisors, Inc.; AIG Retirement Services Company; and The Variable Annuity Life Insurance Company (VALIC); each of which is a subsidiary of American International Group, Inc.

This information is general in nature and may be subject to change. Neither VALIC nor its financial advisors or other representatives give legal or tax advice. Applicable laws and regulations are complex and subject to change. For legal or tax advice concerning your situation, consult your attorney or professional tax advisor.