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Partial Lump-Sum Option Distributions

Texas Legislature approved establishment of a new partial lump-sum option program for those Teacher Retirement System (TRS) members who are eligible for unreduced retirement benefits (not early age retirement) after September 1, 1999, and who are not participating in the DROP. Through this new program, qualified members may select a partial lump-sum distribution in addition to a standard or optional retirement annuity when they retire.

Members may select a partial lump-sum distribution amount equal to 12, 24 or 36 months of a standard service retirement annuity. When this option is selected, the member’s annuity will be actuarially reduced to reflect that distribution and will be computed so that no actuarial loss results to TRS.

A lump-sum amount equal to 12 months of a standard annuity may be taken at the same time as the member’s first monthly annuity payment. A lump-sum amount equal to 24 months may be taken in either one or two annual payments. A lump-sum amount equal to 36 months may be taken in one, two or three annual payments.

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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.