Corridor
A provision included in an investment contract that provides a limited amount of book value coverage for certain specified employer-initiated and/or market value events.
Employee Benefits Security Administration (EBSA)
A division of the DOL, EBSA is responsible for the development of regulations for the security of retirement, health and certain other workplace related benefits, for assisting and educating workers, plan sponsors, fiduciaries and service providers on these rules, and for enforcing the law. Click here for official website.
GIC
See guaranteed investment contract.
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 […]
NRSRO
See Nationally Recognized Statistical Ratings Organization.
Rate Reset
The change that periodically occurs to the rate of the interest earned (also known as the crediting rate) on a stable value investment contract, as may be agreed to in the terms outlined in such contract.
Statement No. 53
GASB Statement No. 53 defines the rules under which book value accounting may be used for certain investment contracts issued to governmental defined contribution plans.
Wrap Fees
Expenses paid to the issuer of the wrap contract. (See also expense ratio.)
Book Value Withdrawals
Benefit payments made at book value. (They are also known as qualified withdrawals or ordinary withdrawals.) Most stable value investment contracts allow book value withdrawals only for participant-initiated withdrawals.