403(b) at AIG/Valic
What would happen to my 403(b) held at AIG/Valic if AIG ceased to exist? Is there an entity that insures 403(b) plans to certain limits like the SIPC does for brokerages and FDIC does for banks? This 403(b) is in a fixed bond fund (T-bills/bonds) that has not yet been annuitized. I realize I could roll this over into an IRA, but would not earn as much at this point. As I live in Ohio, the state of Ohio through the Ohio Life and Health Insurance Guaranty Association will cover up to $100,000 in any loses. I understand that if I lived in NY, then it would be $500,000; so this seems to be a state insurance issue to this point.
Permalink Submitted by Clyde Wolf on Thu, 2008-09-18 20:55
Orderlists,
Your investment is in the bonds.
Your investment is not in AIG.
If AIG were to go away, most likely someother organization would pick up your 403b accounts and continue to administer the 403b activities as is done by AIG.