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.
Money Market Fund
A mutual fund that seeks to maintain a constant net asset value (NAV) of $1 per share while earning a market interest rate for shareholders. Such funds are regulated by the SEC and are comprised of short-term (typically less than one year) securities representing high-quality, liquid debt and monetary instruments. The term may also be used to refer to […]
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 […]
Separately Managed Account (SMA)
See individually managed account.
Transfer Restriction
A plan rule or contractual provision limiting the frequency, amount, or direction of participant transfers between plan investment options. (See also equity wash.)
Bank Pooled Fund
See commingled fund.
Commingled Fund
See pooled fund.
Defined Benefit Plan
A tax-qualified pension plan that provides for the payment of a retirement benefit, according to a specified formula, usually reflecting years of employment service and salary. Required contributions by the plan sponsor are usually actuarially determined. The plan sponsor makes all investment decisions and is responsible for the funding adequacy of the plan.
FASB Statement of Position (FSP) AAG INV-1
FSP AAG INV-1 defines the rules under which book value accounting may be used for the investment contracts issued to commingled funds for defined contribution plans offered by public companies.
