Account Services Glossary of Terms
| MAIZE, MARY | D34730 | ABC SAMPLE PLAN |
Investment and Expense Terminology Glossary
The asterisked (*) investment terms in this glossary satisfy the fee disclosure glossary requirement of federal pension law (ERISA regulation 404a-5) by helping plan participants and beneficiaries understand terminology related to designated investment alternatives offered under the plan.
Others terms in this glossary are provided to help plan participants and beneficiaries understand terminology used in fee disclosure documents and under the plan.
[A] [B] [C] [D] [E] [F] [G] [H] [I] [J] [K] [L] [M] [N] [O] [P] [Q] [R] [S] [T] [U] [V] [W] [X] [Y] [Z]
An annual flat-dollar charge for each participant account.
Accumulation Units*
A device used to measure the value of a separate account investment option.
Additions
Transactions that cause an increase in an account balance.
Allocated*
Invested, as directed, into an account.
Annual Admin Service Fee
An annual fee based on plan assets.
Asset Charge*
This is a charge equal to a percentage of your account's separate account investments.
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[B]Benchmark*
The name and returns of an appropriate broad-based securities market index over 1-, 5-, and 10-year periods that are provided as a comparison to the performance data for a separate account investment option.
Brokerage Window
An investment alternative available outside of the AUL group annuity contract that allows investment of plan assets through a brokerage firm.
Brokerage Window Participant Fee
A fee assessed to any participant electing to invest a portion of his/her account with a brokerage firm.
Brokerage Window Plan Annual Maintenance Fee
An annual fee to a plan sponsor that elects to offer participants a brokerage window.
Brokerage Window Plan Setup Fee
A one-time fee to a plan sponsor to establish the brokerage window option.
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[C]Cash Value/Withdrawal Value
The portion of a participant’s account balance available to provide certain lump-sum payments.
Contribution Census System Non-Usage Fee
An annual fee to a plan sponsor that does not use AUL’s electronic census tool.
Covered Service Provider
An entity receiving compensation for providing services to a plan.
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[D]Deductions*
Transactions that cause a reduction in a participant’s account balance.
Distribution Fee
A fee for each lump sum distribution paid.
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[E]Electronic Deconversion File Package
Historical, indicative, and financial data that may be sent to the plan's successor service provider.
Eligibility Provisions
Provisions in a plan stating the requirements for an employee to participate in the plan.
Expense Ratio*
Expense ratio is the annual operating expenses of the underlying mutual fund divided by the average net assets of the underlying mutual fund. The expense ratio is retained by the investment management company. Gross expense ratio is the unsubsidized annual operating expenses before any fee waivers or expense reimbursements. Net expense ratio is the subsidized annual operating expenses after fee waivers or expense reimbursements.
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[F]Financial Soundings Fee
A charge deducted from the accounts of participants that use Financial Soundings’ investment advice service. No portion of this charge will be retained by AUL.
Fixed Interest Account (FIA)*
An investment option supported by the general assets of AUL where a fixed rate of interest is credited for a stated period.
Forfeiture Reallocations
Nonvested portions of terminated participants’ accounts that are reallocated to the accounts of remaining eligible plan participants as provided by the plan.
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[G]Gains/Losses*
Gains consist of interest credited to amounts in the fixed interest account and in the stable value account and any increase in the value of amounts invested in an AUL separate account. Losses consist of any decrease in the value of amounts invested in an AUL separate account.
Group Annuity
A contract between AUL and a plan sponsor, a plan trustee or a custodian that defines the rights and responsibilities of the parties and the treatment of invested funds.
Guaranteed Interest Fund (GIF)
An investment option supported by the general assets of AUL where a fixed rate of interest is credited.
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[H]Hardship Review Fee
A fee charged by AUL for hardship distribution processing.
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[I]Installation Fee
A one-time fee to install the plan on AUL’s recordkeeping system.
Investment Account*
Each distinct portfolio established within AUL’s separate accounts.
Investment Option Charge (IOC)*
A charge equal to the asset charge plus the expense ratio.
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[L]Liquid Interest Fund (LIF)
An investment option supported by the general assets of AUL where a fixed rate of interest is credited.
Loan Administration Fee
A flat-dollar fee to a participant account each quarter for each outstanding plan loan.
Loan Initiation Fee
A flat-dollar fee to a participant account for each outstanding plan loan.
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[M]Market Value Adjustment (MVA)
The MVA is a percentage of amounts withdrawn from the fixed interest account at contract termination or to provide certain participant benefits. The percentage is determined by comparing interest rates earned at the time of withdrawal on amounts withdrawn to the interest rate applicable at the time to new deposits to the fixed interest account. The resulting amount may be added to, or subtracted from, the amount withdrawn.
Minimum Contribution Fee
A flat-dollar fee to a plan sponsor if contributions within a plan year are less than the minimum underwriting guidelines.
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[O]OneAlliance Asset Charge
A percentage of the assets in separate account investment options at month-end paid to the plan’s third-party administrator.
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[P]Payroll Deduction Date
The payroll date that coincides with each contribution to an account.
Per Participant Account Fee
A fee for participant accounts existing at the end of a quarter.
Plan
A program maintained by a plan sponsor to accumulate funds for retirement.
Plan Expense
An expense for plan administrative or other plan services provided by AUL that can be paid from plan assets/participant accounts at the direction of the plan sponsor.
Plan Sponsor
An employer or other entity that establishes and maintains your Plan.
Plan Sponsor Advice Fee
A fee to a plan sponsor in an amount separately agreed upon by the plan sponsor for third-party investment advice to the plan.
ProNvest Fee
A fee assessed to participant accounts in an amount separately agreed upon by the participant with ProNvest for its services to the participant. No portion of this fee will be retained by AUL.
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[Q]QDRO
Qualified Domestic Relations Order requiring establishment of a participant account for the spouse.
QDRO Review Fee
A fee to a plan sponsor for AUL’s QDRO processing.
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[R]Redemption Fee*
A fee assessed by an investment management company if shares of a particular mutual fund are purchased and sold within the minimum holding period determined by the investment management company. This fee is applied against the participant's account. No portion of this fee will be retained by AUL. A detailed description of a redemption fee calculation can be found on eSponsor or Account Services (R-21389).
Registered Investment Advisor (RIA) Fees
A fee to a plan sponsor in an amount separately agreed upon with a registered investment advisor or an investment advisor representative for services to the plan. No portion of this fee will be retained by AUL.
Revenue Sharing*
The portion of the mutual fund expense ratio that is paid to AUL.
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[S]Sales Compensation Disclosure
The compensation payable to a sales producer of AUL for selling and servicing a group annuity contract.
Separate Accounts*
A pool of assets that is segregated from AUL’s general account to provide participants the opportunity to experience the investment results of the underlying assets, generally mutual funds.
Stable Value Account*
An investment option supported by the general assets of AUL where a fixed rate of interest is credited for a stated period.
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[T]Test File Package
Historical and indicative data that may be sent to a plan's successor service provider.
Third Party Plan Expense
An expense for plan administrative, legal, accounting, or other services provided by service providers other than AUL that can be paid from plan assets/participant accounts at the direction of the plan sponsor.
TPA Fee
A fee to a plan sponsor in an amount separately agreed upon with a third-party administrator. No portion of this fee will be retained by AUL.
Transaction Date
The date on which a transaction occurs.
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[U]Unit Value*
The dollar value of an accumulation unit of a separate account investment option.
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[V]Variable Investment Plus (VIP) Factor
A monthly amount credited to a participant’s account determined by multiplying a percentage by that participant’s month-end separate account assets.
Vesting
The process by which a participant acquires a non-forfeitable right to his/her account balance under the terms of a retirement plan.
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[W]Weighted Average Interest Rate
An average interest rate that takes into consideration each interest rate being credited in a participant’s account and the corresponding balance to which it is being credited.
Withdrawal Charge
A percentage of the account balance that varies according to the terms of the group annuity contract. (May not apply to all withdrawals).
Withdrawal Value/Cash Value
The portion of a participant’s account balance that is available to provide certain lump-sum payments.
