Separate Account GIC
A stable value investment contract that is first supported by associated assets in a segregated separate account held by the issuing insurance company and then, to the extent necessary, by the insurer’s general account assets and surplus. The crediting rate on a separate account GIC resets periodically based upon the earnings of the separate account assets. The securities held in the separate […]
Traditional GIC
A traditional GIC is typically a non-participating, fully guaranteed investment contract backed by the assets in an insurance company’s general account. (See also guaranteed investment contract.)
Bank Investment Contract (BIC)
An investment contract issued by a bank. Unlike GICs, BICs generally do not include annuity provisions.
Collective Fund
See commingled fund.
Deferred Compensation Plan
An Internal Revenue Code Section 457(b) defined contribution plan (often for employees of states and local governments), also known as an “eligible” deferred compensation plan. The term may also generically refer to a non-qualified employee benefit plan sponsored by a private sector employer that is subject to Internal Revenue Code Section 409A.
FASB
See Financial Accounting Standards Board.
Individually Managed Account
An investment account, typically preferred by plan sponsors with larger plans, in which the assets are owned by and managed for the specific plan’s participants and are generally not commingled with the assets of other investors. With respect to a stable value investment option, when compared to commingled funds, individually managed accounts may allow for a degree of customization.
Maturity Date
The date the principal amount of an obligation is payable.
Plan-Initiated Withdrawal
A withdrawal requested by a plan sponsor, trustee, or contract-holder, or agent thereof, of some or all of a plan’s investment in a stable value investment option or investment contract. Plans that wish to terminate their participation in stable value commingled funds or some insurance company guaranteed insurance accounts and receive contract value may be subject to a deferral period. Any deferral period is outlined in the investment […]