GLOSSARY

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Blackout Period
Department of Labor regulations define a Blackout Period as “any time period during which (1) a right to direct plan investments or diversify plan assets within a self-directed account; (2) a right to obtain a plan loan, or (3) a right to obtain a plan distribution, is temporarily suspended, limited or restricted for more than three consecutive business days. “

The blackout period encompasses two distinct elements:

• Freeze period (from the date at which the outgoing recordkeeper freezes accounts to the receipt of good order data and fund transfer by the incoming provider),
• Installation period (from the receipt of good order data and fund transfer to the complete release of account data to participants).

In-kind Transfer Conversion Strategy
In the case of a plan sponsor electing an in-kind transfer conversion strategy, the prior service provider and the incoming service provider re-register the actual securities held in trust for the plan. Participants in a plan that elects an in-kind conversion strategy remain invested through the blackout period and are never out of the market. Other options include the “mapping” and the “re-enrollment” conversion strategies.

Fund Mapping
In a service provider transition, fund mapping is the process or formula to allocate plan assets among the investment options available in the plan at the new retirement plan service provider based on the allocation of plan assets at the former service provider.

M - Z

Mapping Conversion Strategy
A mapping conversion strategy is a type of service provider transition allocating account balances among the investment options available in the plan at the new provider based on the investment allocation of current plan assets at the former service provider. The allocation of account balances is mapped from the prior provider (elections mapping process). A mapping conversions strategy does not require participant direction. Other options include the “in-kind transfer” and the “re-enrollment” strategies.

Market Value Adjustment
A Market Value Adjustment (MVA) is the difference between the book value of a guaranteed or stable value account and the market value of the underlying portfolio of securities due if funds in the account are withdrawn outside the provisions stipulated in the contract. MVAs help protect the stability of the fund for all investors when one investor (e.g., a retirement plan) leaves prematurely. The MVA can be either negative or positive, fluctuates with the market, and cannot be determined in advance.

Re-enrollment Conversion Strategy
A re-enrollment conversion strategy requires participants to make new investment elections. Participant account balances are invested at the new service provider based on new investment allocations elected by the participant. In the absence of participant direction, account balances are invested in the default election selected by the plan sponsor. A re-enrollment strategy does not require fund mapping; it can be implemented even if the allocation of funds at the prior service provider is not available. A re-enrollment strategy gives inactive participants an additional opportunity to join the plan. Other options include the “in-kind transfer” and the “mapping” conversion strategies.