Fees
See expense ratio.
Interest Rate Responsiveness
The degree to which a stable value investment option’s yield (or an investment contract’s crediting rate) moves in conjunction with the changes in the overall market level of interest rates. A stable value investment option’s returns typically tend to follow changes in current interest rates, but with a lag.
Moody’s Investors Service, Inc.
See NRSRO. Click here for official website.
Plan Sponsor
The entity, usually an employer, that has established a retirement plan, selected the type of plan and investment options, and determined the method of funding plan benefits.
Short-Term Investment Fund (STIF)
A short-term investment vehicle, typically with similar objectives as a money market fund, typically managed by the plan’s custodian or trustee bank.
Transfers
Movement by a plan participant of assets from one investment option to another option within the plan. (See also participant-directed cash flow.)
Benefit Payment
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.
Competing Option
An investment option offered by a defined contribution plan in addition to the stable value investment option that has principal preservation as a primary objective (such as a money market option or short-term bond option) or other characteristics similar to stable value. Additionally, self-directed brokerage or mutual fund windows may be deemed competing if a competing option is made available through the window. The presence […]
Department of Labor (DOL)
A federal agency created in 1913 to advance workers’ welfare, working conditions, and, in general, employment opportunities. A division of the DOL, the Employee Benefits Security Administration (EBSA) is responsible for the interpretation and enforcement of ERISA, e.g., regulating fiduciary standards for pension plans and plan reporting on Form 5500. Click here for official website.
