Experience-Rated
See participating contract.
Impaired Securities
A security, the principal and/or interest of which has not been paid in accordance with its contractual terms, e.g., has been forced to make accelerated payments, has failed to make payments when due, has reduced either the principal or interest terms from the contractual terms, or, in a stable value investment contracts, no longer meets the required investment guidelines.
Maturing
A stable value investment strategy that employs a portfolio of actively managed assets but the associated investment contract either may have a defined maturity date or may not have a defined maturity date but allows periodic payments of principal and interest from the assets for liquidity purposes. (Compare to buy and hold and constant duration.)
Participant-Initiated Withdrawals
Withdrawals or transfers requested by participants without any influence, inducement, or prompting by the plan sponsor or other plan intermediaries.
Self-Directed Brokerage Window
A structure some plan sponsors incorporate into their plan design that gives participants the opportunity to supplement a plan’s core investment option menu through self-directed trading access in an in-plan brokerage account. Access to the brokerage window may allow participants to trade stocks, bonds, mutual funds, and exchange-traded funds. Participants typically pay additional fees for access to the brokerage window. (See […]
Synthetic Investment Contract
See Synthetic GIC.
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.
