The developments in financial markets during the past few days have been truly extraordinary. Many employees have contacted the Human Resources Department concerned about the recent press coverage regarding American International Group, Inc. (AIG) and the liquidity pressures it is facing. 

The County contracts with AIG Retirement Services for services with respect to the Deferred Compensation Plan, the Money Purchase Plan and the Supplemental Contribution Plan.

AIG Retirement Services is a subsidiary of AIG and is part of The Variable Annuity Life Insurance Company (VALIC). VALIC is an insurance company that is incorporated in Texas and regulated by Texas insurance laws. VALIC representatives have informed the County that VALIC is financially strong and has a capital surplus. The surplus is separate from AIG.

Important to Know:

If you participate in the Deferred Compensation Plan, the Money Purchase Plan and the Supplemental Contribution Plan and you have an account balance with AIG Retirement Services you should know that your investments in: 

• Fixed Investment Options: Are protected by Texas state insurance regulations. The fixed options provide fixed rate earnings and a guarantee of principal. This guarantee is backed by the claims-paying ability of VALIC, which supports only the obligations of VALIC, not any obligations of AIG.
  
• Variable Assets (Mutual Funds): Are invested in mutual funds regulated by the SEC. A mutual fund’s assets are owned by its shareholders and managed by a professional portfolio manager; such funds are not affected by business actions involving AIG or AIG Retirement.  
  

  Texas state law requires VALIC to maintain separate accounts held for the exclusive benefit of plan participants. This insulation provides safety for and ensures that the account is not subject to claims from any person or entity other than a contract owner, plan participant or beneficiary.

  Mutual funds change in value each business day. Retirement investments are long-term investments, and fluctuating values means that when redeemed, the investments can be worth more or less than its original cost. This also means that client investment returns depend on the performance of the individual investments the participant selected and not on the performance of AIG, or any of the AIG Retirement companies.