See commingled fund.
See commingled fund.
Any payments resulting from a participant's retirement, death, disability or termination of employment, and any payments resulting from a participant's election to withdraw, borrow, or transfer an amount from such participant's account in accordance with the terms of a plan under which a participant is an eligible member.
The ability to transact at book or contract value for benefit payments.
For a stable value investment contract, the value of initial deposited principal, plus accumulated interest, plus additional deposits, minus withdrawals and expenses. The book value of an investment contract is the amount owed by the issuer to the contract-holder on behalf of the plan participants, subject to certain terms and conditions. (See also market value.)
The accounting methodology allowed under AICPA Statement of Position (SOP) 94-4-1 and FASB Statement of Position (FSP) AAG INV-1 by which the valuation of a fully benefit-responsive stable value investment contract is allowed to be reported at book value with market value or fair market value provided as additional disclosures. (If the plan sponsor is a governmental entity the accounting methodology is described under GASB Statement No. 53.) Certain pre-defined criteria by FASB or GASB have to be met in order for an investment contract to qualify for book value accounting and be reported at book value on financial statements.
The adjustment to an investment contract’s book value in accordance with agreed-to contract terms resulting from events such as: withdrawals in excess of the contract’s corridor limits, if any, employer-initiated events, impaired securities, or market value events.
Benefit payments made at book value. (They are also known as qualified withdrawals or ordinary withdrawals.) Most stable value investment contracts allow book value withdrawals only for participant-initiated withdrawals.
See liquidity buffer.
A stable value investment strategy that refers to a portfolio of assets that are typically purchased and then held to maturity. In this buy and hold strategy, the investment contract associated with such assets typically terminates at the maturity of the assets. (Compare to constant duration and maturing.)