FOR IMMEDIATE RELEASE

New addition to Association’s Fees Guide provides insight into insurance company General Accounts and the impact on DC plan fees of investment in their Fixed Account product

Lexington, KY, June 20, 2024—The National Association of Government Defined Contribution Administrators today announced availability of “General Accounts and Their Impact on Defined Contribution Plan Fees” for public sector DC retirement plans. NAGDCA is the premier professional association for plan administrators and services providers of government-sponsored defined contribution retirement plans.

“One of the most important aspects of managing a public sector defined contribution plan is understanding the costs associated with the plan,” said Matt Petersen, NAGDCA Executive Director. “The investment option available through an insurance company’s General account—typically referred to as a Fixed Account—provides a number of advantages beyond those available through other ‘stability of principal’ solutions. As such, it’s important that DC plan sponsors have the information necessary to determine whether investment in a General Account’s Fixed Account can help sponsors achieve their overall plan objectives.”

The new guide covers:

  • What is an insurance company General Account
  • What is a General Account investment product
  • How can investment in a Fixed Account impact plan pricing
  • How is the financial strength of an insurance company evaluated
  • Are investments held in a General Account protected from insurance company creditors
  • How are General Account assets invested
  • How are credited interest rates determined
  • Why are transfer/withdrawal restrictions commonly associated with a Fixed Account
  • Is a Fixed Account the same as a Stable Value Account

“General Accounts and their Impacts on Defined Contribution Plan Fees: A Comprehensive Guide” may be accessed here.

ABOUT NAGDCA
NAGDCA provides education, information, and training in all aspects of public plan administration to support members in creating plans that enable secure retirement outcomes for their participants. Additionally, NAGDCA is a co-founder with the Employee Benefit Research Institute of the Public Retirement Research Lab, a retirement industry-sponsored collaborative effort. The PRRL mines data from the PRRL Database, the first-ever database specific to public sector plan- and participant-level defined contribution data, to produce research aimed at enhancing understanding of the design and utilization of public sector defined contribution retirement plans. NAGDCA also conceived National Retirement Security Week to encourage retirement saving among government workers. Through its efforts, National Retirement Security Week evolved into National Retirement Security Month, a national effort to inspire American employees to save adequately for a secure retirement that is observed throughout the retirement industry during the month of October. It has received bipartisan Senate resolution since its conception in 2006. To learn more about NAGDCA, visit https://www.nagdca.org/.

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