SVIA

Glossary

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EBSA

See Employee Benefits Security Administration.

Effective Annual Yield

The compound yield associated with a periodic interest rate based on the frequency of interest payments per year. As an example, if the annual interest rate is 3%, interest is credited semi-annually and the periodic interest rate is 1.5%, then the effective annual yield is 3.02%, calculated as follows:(1.015 x 1.015)-1= 3.02%. (See also crediting rate.)

Employee Benefits Security Administration (EBSA)

A division of the DOL, EBSA is responsible for the development of regulations for the security of retirement, health and certain other workplace related benefits, for assisting and educating workers, plan sponsors, fiduciaries and service providers on these rules, and for enforcing the law.

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Employee Retirement Income Security Act of 1974, as amended (ERISA)

Enacted in 1974, ERISA is the source of most regulations concerning pension and profit sharing plans. Among other things, it established disclosure, reporting and fiduciary requirements, created rules for participation, vesting and funding, established plan termination guarantees for certain plans to be insured and administered by the Pension Benefit Guaranty Corporation (PBGC), and created Individual Retirement Accounts (IRAs).

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Employer-Initiated Event

Plan changes or certain other related events that are in the control of the employer (including, but not limited to, a plan’s termination, layoffs, or changes in a plan’s design), that may trigger participant withdrawals or transfers. These withdrawals or transfers are either not covered at book value or receive limited book value coverage by stable value investment contracts. (See also book value adjustment, market value adjustment, and market value events.)

Equity Wash

A provision in a stable value investment option that requires any transfer a participant makes from the stable value investment option to a competing option to first be directed to any other investment option not designated as a competing option for a period of time (usually 90 days).

ERISA

See the Employee Retirement Income Security Act of 1974, as amended.

Evergreen

See constant duration.

Expense Ratio

A fund’s operating expenses expressed as a percentage of average net assets. The expense ratio for a stable value option may include investment manager fees, wrap contract and other investment contract fees, and administrative, trustee, and custody fees.

Experience-Rated

See participating contract.