A foundation for your future...you’re ready to retire. Let’s look at an example of two investors: Take a look at two investors Maria starts saving at age 25... She contributes

A foundation for your futureMake the most of your 457(b) plan

Table of contentsThe University System of Georgia (USG) 457(b) plan enrollment guideInvesting for retirement is one of your most important financial goals. At USG, we’re offering you the best possible retirement plans to help you create a foundation for your financial future.

Here’s what you’ll find inside:

The 457(b) plan at USG .......................................................... 1

457(b) plan details .................................................................. 2

Put time on your side ............................................................. 3

403(b) plan—more opportunity to save ................................. 4

How to enroll in the 457(b) plan .............................................. 5

457(b) plan investment options: A four-tiered approach ........ 6

Take the next step .................................................................. 8

University System of Georgia 457(b) Plan 1

The 457(b) plan at USG

1 Bureau of Labor Statistics. September 30, 2019.2 “Consumer Price Index Data from 1913 to 2018.” U.S. Inflation Calculator. February 6, 2019.

http://www.usinflationcalculator.com/inflation/consumer-price-index-and-annual-percent-changes-from-1913-to-20083 “Savings Medicare Beneficiaries Need for Health Expenses: Some Couples Could Need as Much as $400,000, Up from $370,000 in 2017.”

https://www.ebri.org/content/savings-medicare-beneficiaries-need-for-health-expenses-some-couples-could-need-as-much-as-400-000-up-from-370-000-in-2017

The 457(b) plan at USG offers you added flexibility to create a foundation for your financial future. Contributions can be made to this plan in addition to your participation in either the Teachers Retirement System of Georgia or the USG Optional Retirement Plan.

This guide provides an overview of the 457(b) plan, steps to enroll and the investment lineup you can use to save for retirement. Here’s what you’ll find inside:

Why should you save more?1. We’re living longer than ever

With longevity, comes the increased risk of outliving your retirement savings.

Average life expectancy

Female: 81.1 years

Male: 76.1 years

Source: From birth to 2016, National Center for Health Statistics, 2017

2. Inflation is here to stay

Inflation can shrink the buying power of money over time. Notice the effect of inflation on prices of common expenses over a 20-year period nationally.

1998 2019 IncreaseBread1 $0.86 $1.30 +51%Gas1 $1.05 $2.63 +150%Postage stamp2 $0.32 $0.49 +53%

Source: Bureau of Labor Statistics, U.S. Inflation Calculator1

3. Social Security is just one part of your retirement plan

Social Security is designed to supplement other retirement income sources.

Estimated average annual benefit payable to retired worker in 2019* $17,532Estimated average annual benefit payable to a couple in 2019* $29,376Maximum annual benefit for a worker at full retirement in 2019* $34,332

* After 2.8% cost of living adjustment (COLA)

Source: Social Security Administration Fact Sheet: 2019 Social Security Changes

4. Healthcare costs continue to rise

$399,000A retired couple with high healthcare expenses may need an average of $399,000 to cover these costs for the rest of their lives.

Source: Employee Benefits Research Institute, 2018.3

2 University System of Georgia 457(b) Plan

457(b) plan details

EligibilityAll employees of USG, except student workers, may enroll in the 457(b) plan at any time during employment. You can enroll online and contribute through convenient payroll deduction. Your contributions to the 457(b) plan are immediately vested in the plan, meaning you own the account balance and can take it with you if you leave employment with USG.

Your 457(b) plan contribution options

Choose how much to contribute

Once you enroll in the plan, you can contribute up to $19,500 in 2020. If you are age 50 or older, you can contribute an additional $6,500. You can then choose how to allocate these contributions among the plan’s investment lineup to create a retirement portfolio suitable for your needs.

Choose pretax or after-tax contributions

You can set aside money by contributing before taxes are taken out, which lowers your taxable income and could possibly reduce your current income taxes, make after-tax contributions to a Roth account or contribute to both. These contributions are subject to federal annual contribution limits.

With pretax contributions, you defer taxes on interest and earnings until you withdraw your money. Taxes must be paid at withdrawal, and federal withdrawal restrictions apply.

Qualified distributions from a Roth account are tax free. Generally, a qualified Roth distribution is a distribution that (1) is withdrawn after the end of the five-year period beginning with the first year in which a Roth contribution was made to the plan, and (2) is after age 59½, death or disability.

Rollover additional savings into your 457(b) plan

It may make sense to move vested retirement savings from a prior employer’s plan to your retirement plan with USG. Transferring existing retirement account balances can give you a more comprehensive view of your finances and ensure that your overall investments are suitably diversified1 to help meet your financial goals. Before moving funds, check with your other provider to determine if your account has any restrictions, imposes a withdrawal penalty or provides favorable terms.

Before rolling over assets, consider your other options. You may be able to leave money in your current plan, withdraw cash or roll over the assets to your new employer’s plan if one is available and rollovers are permitted. Compare the differences in investment options, services, fees and expenses, withdrawal options, required minimum distributions, other plan features, and tax treatment.

1 Diversification is a technique to help reduce risk. It is not guaranteed to protect against loss.


The sooner you start saving in the retirement plan, the more time your money will have to grow through compounding—where earnings on your money get reinvested and may continue to generate their own earnings. If you start contributing now instead of waiting, it may make a big difference in how much you might have when you’re ready to retire. Let’s look at an example of two investors:

Take a look at two investors

Maria starts saving at age 25...She contributes $200 a month to the retirement plan.

Mariaage 25

Robertage 35

Dol

lars

$383,393

$195,851

Robert starts saving when he is 35…He also contributes $200 a month to the retirement plan.

Assuming a 6% annual return until the age of 65, Maria’s early start gives her $187,542 more than Robert.1

This illustration is purely hypothetical and is not intended to predict or project returns. Actual returns will vary.

Consider investing in yourself with every paycheck• You can start with a small amount per pay period, using convenient payroll deductions.

• Pretax contributions mean you’ll have less in current taxable income.2

• Increase your contributions over time as your salary increases.

• Any earnings are tax deferred.

Put time on your side

1 The examples shown here reflect only voluntary contributions and do not take into account matching contributions from your employer. It does not reflect deduction of any expenses or taxes due upon distribution. If expenses were included, the performance would be lower. Withdrawals made prior to age 59½ may be subject to an additional 10% penalty, in addition to ordinary income tax.

2 Pretax contributions and any earnings are taxable upon withdrawals.


In addition to this 457(b) plan, USG sponsors a 403(b) plan to help you save even more for retirement. You can choose to contribute to both plans, up to the federal contribution limits for each plan as shown below.

2020 contribution limits403(b) contribution $19,500 457(b) contribution $19,500403(b) age 50 catch-up contribution $6,500 457(b) age 50 catch-up contribution $6,500

For 2020, this means that an employee, under age 50, may contribute $19,500 to a 403(b) plan and $19,500 to a 457(b) plan for a total of $39,000. Employees age 50 or older may contribute $26,000 ($19,500 contribution and $6,500 catch-up contribution) to each of the two plans for a total of $52,000.

The primary differences between the 403(b) and the 457(b) plans are how and when you can withdraw your money. Before enrolling in either plan, review these events:

457(b) plan 403(b) planTurning age 70½ Turning age 59½Death DeathSeverance from employment DisabilityUnforeseen emergencies Severance from employment

Immediate financial hardship

Note: You must begin taking distributions when you reach age 70½ or retire from USG, whichever occurs later. Remember that income tax is due upon withdrawal, and withdrawals from your 403(b) account before age 59½ are subject to federal restrictions and may be subject to a 10% federal early withdrawal tax penalty. The 10% penalty also applies to the amounts rolled over to the 457(b) plan from non-457(b) eligible retirement plans.

403(b) plan—more opportunity to save

All employees of USG may enroll in the 457(b) plan (except student workers). You generally must enroll before the beginning of the month in which you want to begin contributions. You must select one or more of the 457(b) retirement plan providers and complete the necessary enrollment.

It’s easy to enroll in the 457(b) plan:

• From OneUSGConnect.usg.edu, the USG Faculty & Staff Portal, click the OneUSG Connect button in the Active employees section

• Select Benefits from the Employee Self Service page

• Select the Retirement@Work tile from the Benefits page

If you have questions or need assistance in enrolling in the 457(b) retirement plan, please visit your institution’s Human Resources Department or Benefits Office.

Creating your 457(b) plan investment strategyYou should review and compare the investments from each of the three 457(b) retirement plan providers before selecting which accounts and funds to invest in.

You can find the investment lineups in the following materials included in this kit:

• The University System of Georgia investment menu with AIG Retirement Services (formerly VALIC)

• The University System of Georgia investment menu with Fidelity

• The University System of Georgia investment menu with TIAA

You can also find these guides at retirement.usg.edu.


How to enroll in the 457(b) plan


A four-tiered approachThe 457(b) plan provides an enhanced, four-tiered investment lineup through the three providers—AIG Retirement Services, Fidelity Investments® and TIAA. These providers offer a wide array of fund options, interactive financial planning tools and high-quality customer service to help you create a diversified retirement portfolio.

Tier 1: Allocation tier1,2 and stable valueThe Allocation tier includes options that offer a diversified investment within a single fund. Many options in this tier are age-based target-date funds. Selecting a target-date fund may be a good choice if you prefer a hands-off approach to managing your retirement savings. Each of these investments creates a diversified3 portfolio within one fund, based on your expected retirement year.

The “target date” indicates when you may plan to begin making withdrawals, and the fund’s investments become more conservative as the target date approaches. After the target date, the fund may be merged into a fund designed for investors already in retirement.

Tier 2: Passively managed/index fund optionsAs a part of the core lineup, passively managed funds are offered for participants who would like to construct and manage their own investment portfolios to meet their specific objectives. Passive management is designed to provide consistency of returns relative to a benchmark, at relatively low cost.

457(b) plan investment options: A four-tiered approach


1,2,3,4,5 See important disclosures for this section on back page.

Tier 3: Actively managed fund optionsAs another part of the core lineup, actively managed funds are also offered for participants who would like to construct and manage their own investment portfolios to meet their specific objectives. Active strategies are designed to have the potential to generate above-market returns.

Tier 4: Self-directed brokerage servicesFor experienced investors seeking maximum flexibility, USG offers a self-directed brokerage option that allows you to select from a wide array of mutual funds, individual stocks and ETFs for employee contributions. The self-directed brokerage options vary by plan and retirement plan provider, so be sure to inquire with the retirement plan provider that you select on what investment options are available. Investors may use this feature to add diversification above and beyond the core offerings. With a brokerage account,4 investors can independently research and select from thousands of mutual funds, individual stocks and ETFs. Individual investment options vary by plan and by provider. Additional brokerage account fees apply.5 However, please note that some investments offered through the self-directed brokerage window may have additional fees and expenses, and annual administrative fees may also apply. Please check with your provider prior to investing. It is your responsibility to determine if this option is appropriate for your goals. You are responsible for monitoring these investments over time and adjusting your portfolio when necessary.

It’s important to understand that USG will not monitor the performance of the funds offered through the brokerage account, and investment advice is not available for brokerage assets. Plan participants are responsible for determining if this option is appropriate for their goals and for monitoring investments in brokerage accounts over time and adjusting their portfolios when necessary.

USG recommends that participants exercise caution and consider seeking professional guidance when investing through a brokerage account. Please note that you may only invest up to 90% of your USG Retirement Plan account balance in a brokerage account.


Take the next step

AIG Retirement Services• Website: valic.com/usg

• By phone: Call 888-569-7055, 8 a.m. to 9 p.m. (ET)

For confidential individual sessions, make an appointment:

• Online: Visit valic.com/usg and click on Contact Us on the upper right-hand side for a list of financial advisors by location

Fidelity Investments®

• Website: netbenefits.com/usg

• By phone: Call 800-343-0860, weekdays, 8 a.m. to midnight (ET)


• Online: Visit fidelity.com/reserve to schedule an appointment online

• By phone: Call 800-642-7131, weekdays, 8 a.m. to 9 p.m. (ET) to schedule an appointment

TIAA• Website: TIAA.org/usg

• By phone: Call 844-230-7524, weekdays, 8 a.m. to 10 p.m. and Saturday, 9 a.m. to 6 p.m. (ET)


• By phone: Call 800-732-8353, weekdays, 8 a.m. to 8 p.m. (ET)

• Online: TIAA.org/schedulenow

Ready to get started? You can enroll in the 457(b) plan through the Retirement@Work online portal, where you can select providers and link to provider websites to select investments. Or, if you prefer to enroll by phone, you can call the Retirement@Work call center at 844-231-7917. You can also contact your chosen provider directly for answers to questions or to schedule an individual advice session using the information below.

http://valic.com/usg

http://netbenefits.com/usg

http://fidelity.com/reserve

http://TIAA.org/schedulenow


How to access your account

You can access your account by phone or online through the Retirement@Work online portal or via phone with a live specialist at 844-231-7917. Or if you prefer, you can contact your provider via the info below.

AIG Retirement Services 800-448-2542 valic.com/usg

Fidelity Investments® 800-343-0860 netbenefits.com/usg

TIAA 844-230-7524 TIAA.org/usg

http://valic.com/usg

http://netbenefits.com/usg

http://TIAA.org/usg

1221001_1499303A40595 (12/19)

1 Target-date funds share the risks associated with the types of securities held by each of the underlying funds in which they invest. In addition to the fees and expenses associated with the target-date funds, there is exposure to the fees and expenses associated with the underlying mutual funds. For more information about the target-date funds, see the University System of Georgia investment menus from each provider.

2 As with all mutual funds, the principal value of a target-date fund isn’t guaranteed at any time, even at the target date. The target date represents an approximate date when investors may choose to begin withdrawing from the fund.

3 Diversification is a technique to help reduce risk. It is not guaranteed to protect against loss.

4 The TIAA Brokerage account option is available to participants who maintain both a legitimate U.S. residential address and a legitimate U.S. mailing address. Certain securities may not be suitable for all investors. Securities are subject to investment risk, including possible loss of the principal amount invested.

Fidelity Investments BrokerageLink includes investments beyond those in your plan’s lineup. BrokerageLink accounts are brokerage accounts established as part of an employee retirement plan and are subject to plan rules. The plan fiduciary neither evaluates nor monitors the investments available through BrokerageLink. Plan participants have trading authority over BrokerageLink accounts. It is your responsibility to ensure the investments you select are suitable for your situation, including your goals, time horizon, and risk tolerance. See the fact sheet and commission schedule for applicable fees and risks.

The brokerage option offered through AIG Retirement Services is a Schwab Personal Choice Retirement Account® (PCRA). Investing involves risk, including the possible loss of principal. Please read the prospectus carefully before investing.

5 By opening a TIAA Brokerage account, you will be charged a commission only on applicable transactions and other account-related fees in accordance with the TIAA Commission and Fee Schedule. Please visit TIAA.org/SDA_CAA. Other fees and expenses apply to a continued investment in the funds and are described in the fund’s current prospectus.

This material is for informational or educational purposes only and does not constitute investment advice. This material does not take into account any specific objectives or circumstances of any particular investor, or suggest any specific course of action. Investment decisions should be made based on the investor’s own objectives and circumstances.

Investment products may be subject to market and other risk factors. See the applicable product literature or visit your investment provider for details.

Distributions from tax-deferred plans before age 59½, severance from employment, death or disability may be prohibited, limited and/or subject to substantial tax penalties. Different restrictions may apply to other types of plans.

Investment, insurance, and annuity products are not FDIC insured, are not bank guaranteed, are not bank deposits, are not insured by any federal government agency, are not a condition to any banking service or activity, and may lose value.

You should consider the investment objectives, risks, charges, and expenses carefully before investing. Please call your investment provider for current product and fund prospectuses that contain this and other information. Please read the prospectuses carefully before investing.

141035013

continued

The University System of Georgia (USG) investment menu with TIAA

1 Please note that with TIAA Traditional, TIAA Real Estate Account and all CREF annuity accounts, TIAA provides a “plan services expense offset” that may be applied to the plan’s administrative costs. A plan services expense offset is a reduction to the TIAA Plan Servicing Fee that TIAA and USG agreed to for TIAA’s recordkeeping services. Investments that have this plan services expense offset will show a Plan Servicing Credit on your quarterly statement rather than a fee.

2 As with all mutual funds, the principal value of a target-date fund isn’t guaranteed at any time, including the target date, and will fluctuate with market changes. The target date approximates when investors may plan to start making withdrawals. However, you are not required to withdraw the funds at that target date. Target-date funds share the risks associated with the types of securities held by each of the underlying funds in which they invest. In addition to the fees and expenses associated with the target-date funds, there is exposure to the fees and expenses associated with the underlying mutual funds.

3 Net expense ratio takes into account any investment fee waivers and expense reductions, giving an indication of what is currently being charged. There are conditions or fee waivers and expirations relevant to the net expense ratios disclosed. Please refer to the prospectuses for additional information.

The USG investment lineup is arranged in a tiered structure, offering a variety of investments from several fund families. You can create a tailored retirement strategy by investing in options from any of the tiers. To learn more about any of the investment options, including the most up-to-date expenses, simply go to TIAA.org and enter the ticker symbol in the site’s search feature. You can also view the investment lineup and details online at TIAA.org/usg.

For the USG Menu with TIAA, certain annuities will provide a credit and will reduce the total fees listed on this page. For more information on which TIAA annuities have a credit and how that is applied, please see pages 4 - 5.

Fund name TickerNet Expense

Ratio3

TIAA Plan Servicing fee

USG Plan Administration

feeTotal

Tier 1: Allocation Tier—403(b) and 457(b) Plans

CREF Social Choice Account R3 (Variable Annuity)1 QCSCIX 0.24% 0.035% 0.0204% 0.2954%

CREF Stock Account R3 (Variable Annuity)1 QCSTIX 0.30% 0.035% 0.0204% 0.3554%

Vanguard Target Retirement 2015 Institutional2 VITVX 0.09% 0.035% 0.0204% 0.1454%

Vanguard Target Retirement 2020 Institutional2 VITWX 0.09% 0.035% 0.0204% 0.1454%

Vanguard Target Retirement 2025 Institutional2 VRIVX 0.09% 0.035% 0.0204% 0.1454%

Vanguard Target Retirement 2030 Institutional2 VTTWX 0.09% 0.035% 0.0204% 0.1454%

Vanguard Target Retirement 2035 Institutional2 VITFX 0.09% 0.035% 0.0204% 0.1454%

Vanguard Target Retirement 2040 Institutional2 VIRSX 0.09% 0.035% 0.0204% 0.1454%

Vanguard Target Retirement 2045 Institutional2 VITLX 0.09% 0.035% 0.0204% 0.1454%

Vanguard Target Retirement 2050 Institutional2 VTRLX 0.09% 0.035% 0.0204% 0.1454%

Vanguard Target Retirement 2055 Institutional2 VIVLX 0.09% 0.035% 0.0204% 0.1454%

Vanguard Target Retirement 2060 Institutional2 VILVX 0.09% 0.035% 0.0204% 0.1454%

Vanguard Target Retirement 2065 Institutional2 VSXFX 0.09% 0.035% 0.0204% 0.1454%

Vanguard Target Retirement Income Institutional2 VITRX 0.09% 0.035% 0.0204% 0.1454%


Ratio3



feeTotal

Tier 1: Allocation Tier and Stable Value—ORP Only

CREF Social Choice Account R3 (Variable Annuity)1 QCSCIX 0.24% 0.035% 0.0204% 0.2954%

CREF Stock Account R3 (Variable Annuity)1 QCSTIX 0.30% 0.035% 0.0204% 0.3554%

TIAA Stable Value (Guaranteed Annuity) N/A 0.00% 0.035% 0.0204% 0.0554%

Vanguard Target Retirement 2015 Trust I2 N/A 0.07% 0.035% 0.0204% 0.1254%











Vanguard Target Retirement Income Trust I2 N/A 0.07% 0.035% 0.0204% 0.1254%

Tier 2: Passively Managed/Index Fund Options

Vanguard Developed Markets Index Institutional VTMNX 0.05% 0.035% 0.0204% 0.1054%

Vanguard Emerging Markets Stock Index Institutional VEMIX 0.10% 0.035% 0.0204% 0.1554%

Vanguard Growth Index Institutional VIGIX 0.04% 0.035% 0.0204% 0.0954%

Vanguard Institutional Index Institutional Plus VIIIX 0.02% 0.035% 0.0204% 0.0754%

Vanguard Mid-Cap Index Institutional VMCIX 0.04% 0.035% 0.0204% 0.0954%

Vanguard Real Estate Index Institutional VGSNX 0.10% 0.035% 0.0204% 0.1554%

Vanguard Small-Cap Index Institutional VSCIX 0.04% 0.035% 0.0204% 0.0954%

Vanguard Total Bond Market Index Institutional VBTIX 0.04% 0.035% 0.0204% 0.0954%

Vanguard Value Index Institutional VIVIX 0.04% 0.035% 0.0204% 0.0954%

continued


2 This investment option is a Collective Investment Trust (CIT) and is an investment vehicle that is available only to qualified retirement plans. CITs consist solely of assets of retirement, or other tax-qualified retirement accounts. A CIT is not a mutual fund. A CIT typically has lower fees than a mutual fund. Visit TIAA.org/usg to obtain a fact sheet for each CIT. The Vanguard Target Retirement Trust investment options are managed by Vanguard.


http://TIAA.org/usg

Tier 4: Self-Directed Brokerage Services

For experienced investors seeking maximum flexibility, the USG Retirement Program offers a self-directed brokerage option that allows you to select from a wide array of mutual funds, individual stocks and ETFs for employee contributions. The self-directed brokerage options vary by plan and retirement plan provider so be sure to inquire with the retirement plan provider that you select on what investment options are available.

Investors may use this feature to add diversification above and beyond the core offerings. However, please note that some investments offered through the self-directed brokerage window may have additional fees and expenses, and annual administrative fees may also apply. Please check with TIAA at 844-230-7524 prior to investing. Brokerage customers may be charged a commission on certain transactions and other account-related fees. Please visit TIAA.org/SDA_CAA for a complete list of commissions and fees at TIAA.

It is your responsibility to determine if this option is appropriate for your goals. You are responsible for monitoring these investments over time and adjusting your portfolio when necessary.

It’s important to understand that USG will not monitor the performance of the funds offered through the brokerage account, and investment advice is not available for brokerage assets. Plan participants will bear the risk of investing through the brokerage account. USG recommends that you exercise caution and consider seeking professional guidance when investing through a brokerage account. Please note that you may only invest up to 90% of your USG Retirement Plan account balance in a brokerage account.




Ratio2



feeTotal

Tier 3: Actively Managed Fund Options

American Funds EuroPacific Growth R6 RERGX 0.49% 0.035% 0.0204% 0.5454%

Artisan International Value Institutional APHKX 1.01% 0.035% 0.0204% 1.0654%

Carillon Eagle Mid-Cap Growth R6 HRAUX 0.66% 0.035% 0.0204% 0.7154%

JPMorgan Equity Income R6 OIEJX 0.50% 0.035% 0.0204% 0.5554%

MFS® Mid-Cap Value R6 MVCKX 0.69% 0.035% 0.0204% 0.7454%

T. Rowe Price Blue Chip Growth I TBCIX 0.57% 0.035% 0.0204% 0.6254%

TIAA Real Estate Account (Variable Annuity)1 QREARX 0.83% 0.035% 0.0204% 0.8854%

TIAA Traditional (Guaranteed Annuity)1 N/A 0.00% 0.035% 0.0204% 0.0554%

Vanguard Explorer Admiral VEXRX 0.34% 0.035% 0.0204% 0.3954%

Vanguard Federal Money Market Investor VMFXX 0.11% 0.035% 0.0204% 0.1654%

Vanguard Inflation-Protected Securities Institutional VIPIX 0.07% 0.035% 0.0204% 0.1254%

Victory Integrity Small-Cap Value R6 MVSSX 0.95% 0.035% 0.0204% 1.0054%

Western Asset Core Plus Bond IS WAPSX 0.42% 0.035% 0.0204% 0.4754%

The investment information is as of June 30, 2019, and is subject to change. For the most up-to-date fee expense investment information, go to your retirement plan provider site.

Understanding your plan fees and expensesYour plan will assess an annual fee of 0.0554% ($5.54 per $10,000 invested), which will be divided into quarterly payments. Each fee will be deducted from your account on the last business day of each quarter and displayed as a “TIAA Plan Servicing Fee” on your quarterly statement. Fee deductions will be listed on your statement on a quarterly basis. (Note: Brokerage assets are included when calculating the 0.0554% fee. However, the fee is deducted only from non-brokerage assets in the new USG plans (e.g., 403(b), 457(b) and ORP plans.)

Credits for certain annuities

TIAA, as recordkeeper, provides a “plan services expense offset” to help pay for recordkeeping and administrative costs. If you invest in the following annuity options, you will receive a “Plan Serving Credit” each quarter to help ensure you pay no more than the 0.0554% fee mentioned above.

Account or Fund/Share class TickerGross Expense

Ratio1 %Net Expense

Ratio1 %TIAA Plan Services Expense Offsets %

TIAA Plan Servicing (Credit) %

CREF Social Choice Account R3 (variable annuity) QCSCIX 0.27 0.27 0.10 (0.10)

CREF Stock Account R3 (variable annuity) QCSTIX 0.31 0.31 0.10 (0.10)

TIAA Real Estate Account (variable annuity) QREARX 0.79 0.79 0.24 (0.24)

TIAA Traditional Annuity (guaranteed annuity) N/A N/A N/A 0.15 (0.15)

How fees are applied to your frozen annuity account(s)

Unlike the new USG accounts, plan servicing fees cannot be deducted from Retirement Annuity (RA), Group Retirement Annuity (GRA), Supplemental Retirement Annuity (SRA) and Group Supplemental Retirement Annuity (GSRA) contracts (the “frozen” accounts). To ensure frozen account holders share in the cost of plan recordkeeping and administration, the plan services expense offsets provided by TIAA will be taken into consideration to pay the 0.0554% fee. If the offsets are greater than the fee, a “Plan Servicing Credit” will be provided for the difference each quarter. A simple formula determines the amount of plan servicing credit: Plan Services Expense Offsets – Total Administration Cost = Plan Servicing Credit

The table below highlights the annuities that provide plan servicing credits:

Account Or Fund/Share Class Ticker

Gross Expense Ratio1 %

Net Expense Ratio1 %

TIAA Plan Services Expense

Offsets %Total Admin

Cost %


CREF Bond Market Account R3 (variable annuity) QCBMIX 0.31 0.31 0.10 0.0554 (0.0446)

CREF Equity Index Account R3 (variable annuity) QCEQIX 0.23 0.23 0.10 0.0554 (0.0446)

CREF Global Equities Account R3 (variable annuity) QCGLIX 0.34 0.34 0.10 0.0554 (0.0446)

CREF Growth Account R3 (variable annuity) QCGRIX 0.26 0.26 0.10 0.0554 (0.0446)

continued

1 Gross expense ratio includes all of an investment’s expenses. Net expense ratio takes into account any investment fee waivers and expense reductions, giving an indication of what is currently being charged. Gross expense ratio includes all of an investment’s expenses. Net expense ratio takes into account any investment fee waivers and expense reductions, giving an indication of what is currently being charged.

Account Or Fund/Share Class Ticker

Gross Expense Ratio1 %

Net Expense Ratio1 %

TIAA Plan Services Expense

Offsets %Total Admin

Cost %


CREF Inflation-Linked Bond Account R3 (variable annuity)

QCILIX 0.24 0.24 0.10 0.0554 (0.0446)

CREF Money Market Account R3 (variable annuity) QCMMIX 0.24 0.24 0.10 0.0554 (0.0446)

CREF Social Choice Account R3 (variable annuity) QCSCIX 0.27 0.27 0.10 0.0554 (0.0446)

CREF Stock Account R3 (variable annuity) QCSTIX 0.31 0.31 0.10 0.0554 (0.0446)

TIAA Real Estate Account (variable annuity) QREARX 0.79 0.79 0.24 0.0554 (0.1846)

TIAA Traditional Annuity (guaranteed annuity) N/A N/A N/A 0.15 0.0554 (0.0446)

To keep the retirement plans in line with industry best practices, USG updated the fee structure arrangement. The new structure provides a significant savings overall. However, the amount of savings each participant will experience depends on how individual contributions and balances are allocated among the investment options.

Plan-related costs

Participants in the plan have generally paid for three categories of plan-related costs:

• Recordkeeping fees (paid to the plan’s recordkeepers – for example, TIAA)

• Administrative fees (paid to the plan’s investment consultant, auditors, accountants, outside counsel and other administrative resources)

• Investment expenses (taken out of individual investments by the managers of the funds in which participants were invested)

Quarterly fee deductions and credits explained

TIAA Plan servicing fee and USG Plan administration fee: These annual fees will be deducted quarterly. The amount will be realized by assessing a fee or credit to each investment you choose within the plan. Each fee or credit will be applied to your account on the last business day of each quarter and is identified as a “TIAA Plan Servicing Fee” or a “Plan Servicing Credit” on your quarterly TIAA statements.

TIAA retirement plan fees and expenses

TIAA Plan servicing fee 0.035%, or $3.50 for every $10,000 invested

USG Plan administration fee 0.0204%, or $2.04 for every $10,000 invested

1 Gross expense ratio includes all of an investment’s expenses. Net expense ratio takes into account any investment fee waivers and expense reductions, giving an indication of what is currently being charged. Gross expense ratio includes all of an investment’s expenses. Net expense ratio takes into account any investment fee waivers and expense reductions, giving an indication of what is currently being charged.

Retirement plan loans

The Retirement Plan Loan program for the 403(b) and 457(b) plans will have a fixed rate of interest and the principal amount will be deducted from your plan account(s). Your subsequent loan payments, including interest, will be credited to your account(s) based on the allocation for your contributions or the default investment option, if no allocation is provided. If you are or become a former employee, you will not be eligible to request new loans.

Any new loans will have a one-time origination fee of $75 for general purpose loans and $125 for residential loans. A participant can only have up to two loans outstanding at any one time.

Investment-specific expenses

Each of the plan’s investment options has an expense charge for investment management and associated services. These fees are measured by what is called an expense ratio. The gross expense ratio includes all of an investment’s expenses. The net expense ratio takes into account any investment fee waivers and expense reductions, giving an indication of what is currently being charged. Expense ratios are reported as a percentage of assets.

For example, a net expense ratio for a particular fund of 0.05% means a participant pays $5 annually for every $10,000 in assets invested in that fund. Knowing the expense ratio charged by each fund helps you understand the cost associated with your investments. In some cases, an investment provider may pay a portion of an investment’s expense ratio to TIAA, the recordkeeper, as a means of offsetting the cost of plan administration. This practice is called “revenue sharing.”†

The investment expenses charged by the managers of the funds are listed in the investment lineup tables included on pages 1-3. You can learn more about any of the investment options (including the most up-to-date expense ratios and other fund-specific expenses, such as redemption fees), at TIAA.org/usg. Select the “Investment Options” tab, then choose the “View All Investments” option from the menu. Scroll down to view the investments by plan or by tier. Fund prospectuses are also available at TIAA.org/usg.

Brokerage fee

Brokerage customers may be charged a commission on certain transactions and other account-related fees. Please visit TIAA.org/SDA_CAA for a complete list of commissions and fees at TIAA. Other fees and expenses apply to a continued investment in the funds and are described in the fund’s current prospectus.

† Revenue sharing describes the practice of an investment manager, distribution company or transfer agent paying a portion of a mutual fund’s expense ratio from their revenues to a plan recordkeeper for keeping track of the ownership of the mutual fund’s shares and other shareholder services. Any revenue shared by an investment provider is included as part of each investment’s expense ratio (it is not in addition to the published expense ratios). Please note that TIAA Traditional, TIAA Real Estate Account and all CREF annuity accounts do not have revenue sharing. Rather, TIAA may provide a “plan services expense offset” that may be applied to the plan’s administrative and recordkeeping costs. A plan services expense offset is a reduction to the TIAA recordkeeping fee that TIAA and your plan sponsor agreed to for TIAA’s recordkeeping services. The reduction may be available when TIAA and CREF products are offered through the plan.

http://TIAA.org/usg

http://TIAA.org/usg

About TIAAWith $1.1 trillion in total assets under management,1 TIAA is a full-service financial services organization that for more than 100 years has dedicated itself to serving those in the academic, medical, cultural and research fields. We do this through a full array of financial products and services that help our participants plan for retirement, while investing for life’s other goals along the way.

TIAA offers the following advantages:

• Investment experience: We have more than 100 years of experience investing for our participants’ retirement and other financial goals.

• Broad array of investment choices: In addition to our retirement savings options, we offer a full range of other investment products and services, including mutual funds, brokerage services and education savings.

• Retirement plan advice: Through our advice service, a TIAA consultant will help you determine which investments are right for your retirement portfolio and if you are contributing enough to pursue your goals.

Get personalized help from TIAA

To schedule an appointment with a TIAA consultant, call 800-732-8353, weekdays, 8 a.m. to 8 p.m. (ET). For information about how to enroll or to discuss your account, call 844-230-7524, weekdays, 8 a.m. to 10 p.m. and Saturday, 9 a.m. to 6 p.m. (ET).

For more information about the complete menu of TIAA investment options available to you, visit TIAA.org/usg or call 844-230-7524, weekdays, 8 a.m. to 10 p.m. and Saturday, 9 a.m. to 6 p.m. (ET).

Online

Use the online TIAA Retirement Advisor tool to receive independent investment advice based on your goals and risk tolerance and create your own action plan in four easy steps.2

Visit TIAA.org/retirementadvisor and log in to your account.

Get the TIAA app.3

1 Assets under management as of 09/30/2019.2 The projections and other information generated by the Retirement Advisor tool are hypothetical in nature, do not reflect actual investment results

and do not guarantee future performance. Results may vary with each use and over time.3 Not all features are available on all devices.

https://apps.apple.com/app/apple-store/id341447597

https://play.google.com/store/apps/details?id=com.mobile.tiaa.cref

891675 141034857

1221001_1499302 A14496 (12/19)

Distributions from tax-deferred plans before age 59½, severance from employment, death or disability may be prohibited, limited and/or subject to substantial tax penalties. Different restrictions may apply to other types of plans.

The TIAA group of companies does not provide legal or tax advice. Please consult your legal or tax advisor.

Investment, insurance, and annuity products are not FDIC insured, are not bank guaranteed, are not bank deposits, are not insured by any federal government agency, are not a condition to any banking service or activity, and may lose value.

You should consider the investment objectives, risks, charges, and expenses carefully before investing. Please call 877-518-9161 or go to TIAA.org/usg for current product and fund prospectuses that contain this and other information. Please read the prospectuses carefully before investing.TIAA-CREF Individual & Institutional Services, LLC, Member FINRA, distributes securities products. Annuity contracts and certificates are issued by Teachers Insurance and Annuity Association of America (TIAA) and College Retirement Equities Fund (CREF), New York, NY. Each is solely responsible for its own financial condition and contractual obligations. TIAA Brokerage, a division of TIAA-CREF Individual & Institutional Services, LLC, Member FINRA/SIPC, distributes securities.

Brokerage accounts are carried by Pershing, LLC, a subsidiary of The Bank of New York Mellon Corporation, Member FINRA, NYSE, SIPC.

©2019 Teachers Insurance and Annuity Association of America-College Retirement Equities Fund, 730 Third Avenue, New York, NY 10017

The information contained herein has been provided by the University System of Georgia and is solely the responsibility of the University System of Georgia.

The University System of Georgia (USG) investment menu with Fidelity Investments®

The USG investment lineup is arranged in a tiered structure, offering investments from a variety of fund families. You can learn more about any of the investment options, including the fund lineup online and the most up-to-date expenses at netbenefits.com/usg. Simply click Plans & Investments at the top of the web page.

Fund name TickerNet

Expense Ratio

Fidelity Plan

Servicing fee


feeTotal


Vanguard Institutional Target Retirement 2015 Institutional1 VITVX 0.09% 0.080% 0.0204% 0.1904%

Vanguard Institutional Target Retirement 2020 Institutional1 VITWX 0.09% 0.080% 0.0204% 0.1904%

Vanguard Institutional Target Retirement 2025 Institutional1 VRIVX 0.09% 0.080% 0.0204% 0.1904%

Vanguard Institutional Target Retirement 2030 Institutional1 VTTWX 0.09% 0.080% 0.0204% 0.1904%

Vanguard Institutional Target Retirement 2035 Institutional1 VITFX 0.09% 0.080% 0.0204% 0.1904%

Vanguard Institutional Target Retirement 2040 Institutional1 VIRSX 0.09% 0.080% 0.0204% 0.1904%

Vanguard Institutional Target Retirement 2045 Institutional1 VITLX 0.09% 0.080% 0.0204% 0.1904%

Vanguard Institutional Target Retirement 2050 Institutional1 VTRLX 0.09% 0.080% 0.0204% 0.1904%

Vanguard Institutional Target Retirement 2055 Institutional1 VIVLX 0.09% 0.080% 0.0204% 0.1904%

Vanguard Institutional Target Retirement 2060 Institutional1 VILVX 0.09% 0.080% 0.0204% 0.1904%

Vanguard Institutional Target Retirement 2065 Institutional1 VSXFX 0.09% 0.080% 0.0204% 0.1904%

Vanguard Institutional Target Retirement Income Institutional1 VITRX 0.09% 0.080% 0.0204% 0.1904%

continued

1 The principal value of an investment in a target-date fund is not guaranteed at any time including at or after the target maturity date. The target date is the approximate date when investors plan to start withdrawing their money. The fund will gradually shift its emphasis from more aggressive investments to more conservative ones based on its target date.

Fund name TickerNet

Expense Ratio

Fidelity Plan

Servicing fee


feeTotal

Tier 1: Allocation Tier—ORP Only












Vanguard Target Retirement Income Trust I1 N/A 0.07% 0.080% 0.0204% 0.1704%


Vanguard Developed Markets Index Institutional VTMNX 0.05% 0.080% 0.0204% 0.1504%

Vanguard Emerging Markets Stock Index Institutional VEMIX 0.10% 0.080% 0.0204% 0.2004%

Vanguard FTSE Social Index Admiral VFTAX 0.18% 0.080% 0.0204% 0.2804%

Vanguard Growth Index Institutional VIGIX 0.04% 0.080% 0.0204% 0.1404%

Vanguard Institutional Index Institutional Plus VIIIX 0.02% 0.080% 0.0204% 0.1204%

Vanguard Mid-Cap Index Institutional VMCIX 0.04% 0.080% 0.0204% 0.1404%

Vanguard Real Estate Index Institutional VGSNX 0.10% 0.080% 0.0204% 0.2004%

Vanguard Small-Cap Index Institutional VSCIX 0.04% 0.080% 0.0204% 0.1404%

Vanguard Total Bond Market Index Institutional VBTIX 0.04% 0.080% 0.0204% 0.1354%

Vanguard Value Index Institutional VIVIX 0.04% 0.080% 0.0204% 0.1404%

1 The investment option is a collective investment trust. It is managed by Vanguard. This investment option is not a mutual fund. You can learn more at netbenefits.com/usg.

continued



Investors may use this feature to add diversification above and beyond the core offerings. However, please note that some investments offered through the self-directed brokerage window may have additional fees and expenses, and annual administrative fees may also apply. Please check with Fidelity Brokerage at 800-343-0860 prior to investing. See the fact sheet and commission schedule for applicable fees and risks at netbenefits.com/usg.




Fund name TickerNet

Expense Ratio

Fidelity Plan

Servicing fee


feeTotal


American Funds EuroPacific Growth R6 RERGX 0.49% 0.080% 0.0204% 0.5904%

Artisan International Value Institutional APHKX 1.01% 0.080% 0.0204% 1.1104%

Carillon Eagle Mid-Cap Growth R6 HRAUX 0.66% 0.080% 0.0204% 0.7604%

Fidelity Contrafund K6 FLCNX 0.45% 0.080% 0.0204% 0.5504%

JPMorgan Equity Income R6 OIEJX 0.50% 0.080% 0.0204% 0.6004%

Lincoln Stable Value N/A 0.10% 0.080% 0.0204% 0.2004%

MFS® Mid-Cap Value R6 MVCKX 0.69% 0.080% 0.0204% 0.7904%

T. Rowe Price Blue Chip Growth I TBCIX 0.57% 0.080% 0.0204% 0.6704%

Vanguard Explorer Admiral VEXRX 0.34% 0.080% 0.0204% 0.4404%

Vanguard Federal Money Market Investor VMFXX 0.11% 0.080% 0.0204% 0.2104%

Vanguard Inflation-Protected Securities Institutional VIPIX 0.07% 0.080% 0.0204% 0.1704%

Vanguard International Growth Admiral VWILX 0.032% 0.080% 0.0204% 0.1324%

Victory Integrity Small-Cap Value R6 MVSSX 0.95% 0.080% 0.0204% 1.0504%

Western Asset Core Plus Bond IS WAPSX 0.42% 0.080% 0.0204% 0.5204%

Understanding your plan fees and expensesThe USG fully disclosed fee structure provides a significant savings overall. However, the amount of savings depends on how the individual investor has allocated funds among the investment options.

Plan-related costs


• Recordkeeping fees (paid to the plan’s recordkeepers—Fidelity, for example)



Quarterly fee deductions explained

Fidelity Plan servicing fee: Fidelity will assess an annual plan servicing fee that will be deducted quarterly, with amounts determined by assessing a fee to each investment you choose within the plan. Each fee will be assessed to your account during the first month following each quarter and will be identified as “fees” on your quarterly statements from Fidelity.

USG Plan administration fee: USG will assess an annual fee for plan administration services, which will be divided into quarterly payments. This fee is deducted proportionally from each investment in your account on the last business day of each quarter and is identified as “fees” on your quarterly Fidelity statements.

Fidelity retirement plan fees and expenses

Fidelity Plan servicing fee 0.08%, or $8.00 for every $10,000 invested

USG Plan administration fee 0.0204%, or $2.04 for every $10,000 invested


All participants in the 403(b) and 457(b) plans will be eligible to take a loan from their vested Plan account balance. Although your retirement plan account is intended for the future, you may borrow from your account for any reason. Generally, the Plan allows you to borrow up to 50% of your vested account balance. The minimum loan amount is $1,000, and a loan must not exceed $50,000. You then repay your 403(b) or 457(b) account, plus interest, via ACH. If you are or become a former employee, you will not be eligible to request new loans.

The cost to initiate a loan is $50, and there is a quarterly maintenance fee of $6.25. The initiation and maintenance fees will be deducted directly from your Plan account. A participant can only have up to two loans outstanding at any one time.


Each of the plan’s investment options has an expense charge for investment management and associated services. These fees are measured by what is called an expense ratio. The net expense ratio takes into account any investment fee waivers and expense reductions, giving an indication of what is currently being charged.

Expense ratios are reported as a percentage of assets.

For example, an expense ratio for a particular fund of 0.05% means a participant pays $5 annually for every $10,000 in assets invested in that fund. Knowing the expense ratio charged by each fund helps you understand the cost associated with your investments.

The investment expenses charged by the managers of the funds are listed in the tables included on pages 1-3. Fund prospectuses, along with information on the most up-to-date investment fees at Fidelity (including expense ratios and other fund-specific expenses, such as redemption fees) can be found at netbenefits.com/usg.

Brokerage fee

The USG plans offer Fidelity BrokerageLink®, a self-directed brokerage account. Fidelity BrokerageLink provides you with an opportunity to invest in a broad range of investment options beyond those offered directly through the plans. This additional flexibility and choice may help you to more effectively build a retirement portfolio that’s more tailored to your individual goals.

See the fact sheet and commission schedule for applicable fees and risks at netbenefits.com/usg.

About Fidelity Investments®

As one of America’s largest privately held investment companies, Fidelity has always been committed to providing exceptional money management, outstanding customer service and state-of-the-art technology. With Fidelity, you can count on more than 70 years of investment experience and more than 25 years of earning trust among people planning for retirement.

• Investment options: When it comes to mutual funds, Fidelity has a long-standing commitment to research and performance. You have access to hundreds of investment options, all categorized in an easy-to-understand format.

• Customer service: At Fidelity, we do more than just provide investment opportunities. We also offer the types of tools and resources that can help you become a better investor. Our commitment to investor education means you have easy access to the people and information you need to help you make informed investment decisions.

• netbenefits.com/atwork: Simply log on to Fidelity NetBenefits®, virtually anywhere, anytime, for immediate access to your account to view your account balances, request exchanges between investment options, track contributions, access fund information and more.

• 800-343-0860: Call us toll-free, virtually 24 hours a day, seven days a week, for account balance transactions and more. And with our system’s natural language capabilities, you can quickly and easily monitor and manage your account by using simple phrases and voice commands.

• Knowledgeable representatives: Fidelity’s representatives are knowledgeable, dedicated, professional and committed to helping you take full advantage of your retirement plans.

• Education how and when you need it: To help you make knowledgeable and confident decisions about your money, Fidelity offers online workshops, tools and resources, on-site learning opportunities and access to experienced representatives.

You can get helpFor help understanding your options and how they fit in your financial plan, call Fidelity at 800-642-7131 to set up a one-on-one meeting with a Fidelity Retirement Planner.

1410321541221001_1504201

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The information contained herein has been provided by the University System of Georgia and is solely the responsibility of the University System of Georgia.

Before investing in any mutual fund, please carefully consider the investment objectives, risks, charges, and expenses. Contact Fidelity for a prospectus or, if available, a summary prospectus containing this information. Read it carefully.

Keep in mind that investing involves risk. The value of your investment will fluctuate over time and you may gain or lose money. Fidelity Brokerage Services LLC, Member NYSE, SIPC, 900 Salem Street, Smithfield, RI 02917.

©2019 FMR LLC. All rights reserved. 543587.5.0

The University System of Georgia (USG) investment menu with AIG Retirement Services (formerly VALIC)

continued

The new investment lineup was carefully selected by USG and CAPTRUST, an independent investment advisory firm, to offer you flexibility to create a diversified retirement portfolio. You can learn more about any of the investment options, including the most up-to-date expenses, at USG.VALIC.com. Simply click Plan Details at the top of the page and then Prospectuses & other materials.

Fund name TickerNet

Expense Ratio

AIG* Plan Servicing

fee


feeTotal


Vanguard Target Retirement 2015 Institutional1 VITVX 0.09% 0.110% 0.0204% 0.2204%Vanguard Target Retirement 2020 Institutional1 VITWX 0.09% 0.110% 0.0204% 0.2204%Vanguard Target Retirement 2025 Institutional1 VRIVX 0.09% 0.110% 0.0204% 0.2204%Vanguard Target Retirement 2030 Institutional1 VTTWX 0.09% 0.110% 0.0204% 0.2204%Vanguard Target Retirement 2035 Institutional1 VITFX 0.09% 0.110% 0.0204% 0.2204%Vanguard Target Retirement 2040 Institutional1 VIRSX 0.09% 0.110% 0.0204% 0.2204%Vanguard Target Retirement 2045 Institutional1 VITLX 0.09% 0.110% 0.0204% 0.2204%Vanguard Target Retirement 2050 Institutional1 VTRLX 0.09% 0.110% 0.0204% 0.2204%Vanguard Target Retirement 2055 Institutional1 VIVLX 0.09% 0.110% 0.0204% 0.2204%Vanguard Target Retirement 2060 Institutional1 VILVX 0.09% 0.110% 0.0204% 0.2204%Vanguard Target Retirement 2065 Institutional1 VSXFX 0.09% 0.110% 0.0204% 0.2204%Vanguard Target Retirement Income Institutional1 VITRX 0.09% 0.110% 0.0204% 0.2204%

Tier 1: Allocation Tier—ORP Only

Vanguard Target Retirement 2015 Trust I1, 2 N/A 0.07% 0.110% 0.0204% 0.2004%Vanguard Target Retirement 2020 Trust I1, 2 N/A 0.07% 0.110% 0.0204% 0.2004%Vanguard Target Retirement 2025 Trust I1, 2 N/A 0.07% 0.110% 0.0204% 0.2004%Vanguard Target Retirement 2030 Trust I1, 2 N/A 0.07% 0.110% 0.0204% 0.2004%Vanguard Target Retirement 2035 Trust I1, 2 N/A 0.07% 0.110% 0.0204% 0.2004%Vanguard Target Retirement 2040 Trust I1, 2 N/A 0.07% 0.110% 0.0204% 0.2004%Vanguard Target Retirement 2045 Trust I1, 2 N/A 0.07% 0.110% 0.0204% 0.2004%Vanguard Target Retirement 2050 Trust I1, 2 N/A 0.07% 0.110% 0.0204% 0.2004%Vanguard Target Retirement 2055 Trust I1, 2 N/A 0.07% 0.110% 0.0204% 0.2004%Vanguard Target Retirement 2060 Trust I1, 2 N/A 0.07% 0.110% 0.0204% 0.2004%Vanguard Target Retirement 2065 Trust I1, 2 N/A 0.07% 0.110% 0.0204% 0.2004%Vanguard Target Retirement Income Trust I1, 2 N/A 0.07% 0.110% 0.0204% 0.2004%

* AIG Retirement Services

Fund name TickerNet

Expense Ratio

AIG* Plan Servicing

fee


feeTotal


Vanguard Developed Markets Index Institutional VTMNX 0.05% 0.110% 0.0204% 0.1804%Vanguard Emerging Markets Stock Index Institutional VEMIX 0.10% 0.110% 0.0204% 0.2304%Vanguard FTSE Social Index Admiral VFTAX 0.18% 0.110% 0.0204% 0.2804%Vanguard Growth Index Institutional VIGIX 0.04% 0.110% 0.0204% 0.1704%Vanguard Institutional Index Institutional Plus VIIIX 0.02% 0.110% 0.0204% 0.1504%Vanguard Mid-Cap Index Institutional VMCIX 0.04% 0.110% 0.0204% 0.1704%Vanguard Real Estate Index Institutional VGSNX 0.10% 0.110% 0.0204% 0.2304%Vanguard Small-Cap Index Institutional VSCIX 0.04% 0.110% 0.0204% 0.1704%Vanguard Total Bond Market Index Institutional VBTIX 0.04% 0.110% 0.0204% 0.1704%Vanguard Value Index Institutional VIVIX 0.04% 0.110% 0.0204% 0.1704%


American Funds EuroPacific Growth R6 RERGX 0.49% 0.110% 0.0204% 0.6204%Carillon Eagle Mid-Cap Growth R6 HRAUX 0.66% 0.110% 0.0204% 0.7904%JPMorgan Equity Income R6 OIEJX 0.50% 0.110% 0.0204% 0.6304%MFS International Value R6 MINJX 0.63% 0.110% 0.0204% 0.7604%MFS® Mid-Cap Value R6 MVCKX 0.69% 0.110% 0.0204% 0.8204%T. Rowe Price Blue Chip Growth I TBCIX 0.57% 0.110% 0.0204% 0.7004%VALIC Fixed Interest Option N/A 0.00% 0.110% 0.0204% 0.1304%Vanguard Explorer Admiral VEXRX 0.34% 0.110% 0.0204% 0.4704%Vanguard Federal Money Market Investor VMFXX 0.11% 0.110% 0.0204% 0.2404%Vanguard Inflation-Protected Securities Institutional VIPIX 0.07% 0.110% 0.0204% 0.2004%Vanguard International Growth Admiral VWILX 0.032% 0.110% 0.0204% 0.1624%Victory Integrity Small-Cap Value R6 MVSSX 0.95% 0.110% 0.0204% 1.0804%Western Asset Core Plus Bond IS WAPSX 0.43% 0.110% 0.0204% 0.5604%

continued


* AIG Retirement Services



Investors may use this feature to add diversification above and beyond the core offerings. However, please note that some investments offered through the self-directed brokerage window may have additional fees and expenses, and annual administrative fees may also apply. Please check with AIG Retirement Services at 800-448-2542 prior to investing. Brokerage customers may be charged a commission on certain transactions and other account-related fees.3

Please visit schwab.com for a complete list of commissions and fees at AIG Retirement Services. Other fees and expenses apply to a continued investment in the funds and are described in the fund’s current prospectus.



Understanding your plan fees and expensesThe USG fully disclosed fee structure provides a significant savings overall. However, the amount of savings depends on how you, as an individual investor, have allocated funds among the investment options.

Plan-related costs


• Recordkeeping fees (paid to the plan’s recordkeepers—AIG Retirement Services, for example)



Quarterly fee deductions explained

USG Plan servicing fee: USG will also assess an annual fee for plan services, which will be divided into quarterly payments. This fee is deducted proportionally from each investment in your account on the last business day of each quarter and is identified as “Servicing Fee” on your quarterly AIG Retirement Services statements.

AIG Retirement Services Plan administration fee: AIG Retirement Services will assess an annual Plan administration fee that will be deducted quarterly. This amount will be realized by assessing a fee to each investment you choose within the plan. Each fee will be applied to your account on the last business day of each quarter and is identified as “Administration Fee” on your quarterly AIG Retirement Services statements.

AIG Retirement Services plan fees and expenses

USG Plan servicing fee 0.0204%, or $2.04 for every $10,000 invested

AIG Retirement Services Plan administration fee

0.11%, or $11.00 for every $10,000 invested


Retirement plan loans are only available on the 403(b) and 457(b) plans. A one-time fee of $50 will be charged as an initial setup cost with a $25 annual fee assessed for administration of each loan. Repayments are made by Automated Clearing House (ACH) debit agreement from your personal checking or savings account. At the time you request a loan, you will be asked to complete an ACH debit agreement. All loan interest repaid will be credited to your account. A participant can only have up to two loans outstanding at any one time. If you are or become a former employee, you will not be eligible to request new loans.

Outstanding annuity loans will not be transferred to the mutual fund platform. Your loan repayments will continue to be paid via ACH under the annuity program. Once annuity loans are paid in full, you may submit an Asset Conversion Form if you choose to transfer the remaining loan payments received by the annuity account to the mutual fund platform.


Each of the plan’s investment options has an expense charge for investment management and associated services. These fees are measured by what is called an expense ratio. The net expense ratio takes into account any investment fee waivers and expense reductions, giving an indication of what is currently being charged. Expense ratios are reported as a percentage of assets.

For example, an expense ratio for a particular fund of 0.05% means a participant pays $5 annually for every $10,000 in assets invested in that fund. Knowing the expense ratio charged by each fund helps you understand the cost associated with your investments.

The investment expenses charged by the managers of the funds are listed in tables included on pages 1-2. These expenses are generally lower than the expenses charged by the managers of the funds in the prior lineup.

Information on investment fees at AIG Retirement Services (including expense ratios and other fund-specific expenses, such as redemption fees) can be found at USG.VALIC.com or in fund prospectuses available on USG.VALIC.com. Just click on Plan Details at the top of the page and then click on Prospectuses & other materials.

Brokerage fee

Brokerage customers may be charged a commission on certain transactions and other account-related fees.3 Please visit schwab.com for a complete list of commissions and fees at AIG Retirement Services. Other fees and expenses apply to a continued investment in the funds and are described in the fund’s current prospectus.

About AIG Retirement ServicesThe Variable Annuity Life Insurance CompanyAs a pioneer in the retirement industry, AIG Retirement Services developed and introduced investment products and services that set the standard in the industry today. We manage more than $97 billion* in assets and serve more than 1.9 million participants* across the country. We specialize in helping Americans plan for and enjoy a secure retirement.

Serving your needsWhether you’re just starting to think about saving for retirement or you’ve contributed to a retirement plan for years, we can help.• Personal service from financial advisors. Local AIG Retirement Services financial advisors can help every step

of the way, from enrollment through financial planning and investment guidance.

• Easy enrollment. We make it easy to get started. You can enroll online, by phone or with an advisor.

• Broad selection of investment options. We offer a broad universe of quality and nonproprietary mutual funds with competitive fees, managed by well-known investment companies. This variety allows you to choose the investment mix that best suits your needs.

• Financial education, planning and advice. Seminars and personalized financial plans provide guidance and roadmaps to life goals, including retirement.

To schedule an appointment with your local AIG Retirement Services financial advisor, visit valic.com/usg and click on Contact Us on the upper right-hand side for a list of financial advisors by location.Solutions for your financial life: Take advantage of financial planning to help find the right solutions for you. Click: valic.com/usg • Call: 800-448-2542 • Visit: Your local AIG Retirement Services financial advisorFor more information about the broad, diversified menu of AIG Retirement Services investment options available to you, please visit valic.com/usg or call 800-448-2542, weekdays, 8 a.m. to 9 p.m. (ET).

*As of 3/31/2018.

You could lose money by investing in the Money Market Fund. Although the Fund seeks to preserve the value of your investment at $1.00 per share, it cannot guarantee it will do so. An investment in the Fund is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. The Fund’s sponsor has no legal obligation to provide financial support to the Fund, and you should not expect that the sponsor will provide financial support to the Fund at any time.

Policy Form GFA-504, a group fixed annuity issued by The Variable Annuity Life Insurance Company (VALIC), Houston, TX.1 The principal value of an investment in a target-date fund is not guaranteed at any time including at or after the target maturity date.

The target date is the approximate date when investors plan to start withdrawing their money. The fund will gradually shift its emphasis from more aggressive investments to more conservative ones based on its target date.

2 This investment option is a Collective Investment Trust (CIT) and is an investment vehicle that is available only to qualified retirement plans. CITs consist solely of assets of retirement, or other tax-qualified retirement accounts. A CIT is not a mutual fund. A CIT typically has lower fees than a mutual fund. Visit USG.VALIC.com to obtain a fact sheet for each CIT. The Vanguard Target Retirement Trust investment options are managed by Vanguard.

3 A prospectus(es) containing more complete information, including management fees, charges and expenses, is available from Schwab (800-435-4000). Please read the prospectus(es) carefully before investing. Other fees and charges for value-added services may apply. You can ask a Schwab representative for more information.

Schwab’s standard transaction fee will be charged on each redemption of fund shares bought with no transaction fee and held for 90 days or less. Schwab reserves the right to assess Schwab’s standard transaction fees in the future should short-term trading become excessive. Schwab receives remuneration from Mutual Fund OneSource companies. Schwab reserves the right to change the funds made available without transaction fees. Depending on the terms of your retirement plan, your Schwab Personal Choice Retirement Account® is a custodial account established under Section 401(a), Section 403(b)(7) or Section 457 of the Internal Revenue Code of 1986, as amended. Your rights under the account are governed by the terms of your account or your employer’s plan.

Generally, higher potential returns involve greater risk and short-term volatility. For example, small-cap, mid-cap, sector and emerging funds can experience significant price fluctuation due to business risks and adverse political developments.

International and global funds can experience price fluctuation due to changing market conditions, currency values, and economic and political climates.

High-yield bond funds, which invest in bonds that have lower ratings, typically experience price fluctuation and a greater risk of loss of principal and income than when investing directly in U.S. government securities such as U.S. Treasury bonds and bills, which are guaranteed by the government for repayment of principal and interest if held to maturity.

Fund shares are not insured and are not backed by the U.S. government, and their value and yield will vary with market conditions.

Interest rates and bond prices typically move inversely to each other; therefore, as with any bond fund, the value of an investment in this fund may go up if interest rates fall, and vice versa.

Mortgage-related funds’ underlying mortgages are more likely to be prepaid during periods of declining interest rates, which could hurt the fund’s share price or yield and may be prepaid more slowly during periods of rapidly rising interest rates, which might lengthen the fund’s expected maturity.

Investors should carefully assess the risks associated with an investment in the fund.

Investing involves risk, including the possible loss of principal. Investment values will fluctuate and there is no assurance that the objective of any fund will be achieved. Mutual fund shares are redeemable at the then-current net asset value, which may be more or less than their original cost.

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To view or print a prospectus, access “Prospectus and Other Important Materials.” The prospectus contains the investment objectives, risks, charges, expenses, and other information about the respective investment companies that you should consider carefully before investing. Please read the prospectus carefully before investing or sending money. You can also request a copy by calling 800-428-2542.Securities and investment advisory services offered through VALIC Financial Advisors, Inc. (“VFA”), member FINRA, SIPC, and an SEC-registered investment advisor. VFA registered representatives offer securities and other products under retirement plans and IRAs, and to clients outside of such arrangements.

Annuities issued by The Variable Annuity Life Insurance Company (“VALIC”) Houston, TX. Variable annuities distributed by its affiliate, AIG Capital Services, Inc. (“ACS”), member FINRA.

AIG Retirement Services represents AIG member companies—The Variable Annuity Life Insurance Company (“VALIC”) and its subsidiaries VALIC Financial Advisors, Inc. (“VFA”) and VALIC Retirement Services Company (“VRSCO”). All are members of American International Group, Inc. (“AIG”).

©The Variable Annuity Life Insurance Company.

All rights reserved.

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The information contained herein has been provided by the University System of Georgia and is solely the responsibility of the University System of Georgia.The information contained herein has been provided by the University System of Georgia and is solely the responsibility of the University System of Georgia.

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