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Lesser of Book and Market Withdrawal

A type of plan-initiated withdrawal for plans departing certain commingled funds or insurance company stable value investment options that allow the departing plan to withdraw its investment at either the book value of the investment contract (or stable value investment option) or the market value of the associated assets supporting the book value of the investment contract (or stable value investment option), whichever is lower.

Life Insurance Directly Sold

Also known as guaranteed insurance accounts, a stable value investment option entirely offered and guaranteed by a single insurance company, with the underlying assets managed by the insurance company or an affiliated investment manager. Guaranteed insurance accounts may be provided via a group annuity contract or a funding agreement that can be issued either from the insurer’s general account or from an insurance company separate account, in which case the investment is first supported by the assets in the segregated separate account and then, to the extent necessary, by the insurer’s general account assets and surplus. (See also guaranteed investment contract and pooled GIC fund.)


Generally, liquidity is the degree to which an investment can be easily sold or converted into cash, especially without affecting the investment’s price. In a stable value context, it means a participant’s ability to access funds without market value risk or other penalty.

Liquidity Buffer

Investments, typically a money market fund or STIF, in a stable value investment option that may be used as a first source of liquidity to absorb immediate cash flow needs without requesting withdrawals from other stable value investment option assets.