For some reason, most people seem to be thinking that the Georgia TRS and AIG VALIC have some relationship. They are not one in the same, and one has nothing to do with the other. I tried to explain this to someone yesterday on the phone, and the example that they understood was the following:
Think of your retirement as a house. You have water, natural gas, and electricity to run your house. If there is a problem with one of those companies, it does not effect the others. If there is a water problem, the water company takes care of it, etc., etc. So think of Social Security as water, AIG VALIC as natural gas, and TRS as electricity. They are completely independent of each other. This is not to say that they may not all have their own issues, but the relationship between them is only at your level.
TRS may have made investments in AIG, but this is not the same as a AIG VALIC account. That investment would affect the overall value of the TRS fund, but your benefit is based completely on a published list of variables. According to previous annual reports, the TRS fund is very diversified betweens various stocks and bonds. Additionally, its holdings in any one stock are only small percentage wise investments.
- Remember your benefit from TRS is guaranteed by Georgia state law, and you can call TRS to discuss with them your projected benefits or download your most recent TRS statement via their website.
- Your AIG VALIC account has only the money within the account (and any future contributions and gains/losses). Any funds that you eventually withdraw from the account will come from there.