Defined terms for the annuity market and lifetime income landscape.
A longevity risk-sharing pool is an arrangement in which multiple individuals contribute to a common fund and receive lifetime income, with mortality experience shared across the group so that survivors' income is supported by amounts released from participants who die before their expected age.
Lump sum versus annuity election is the participant's choice, at retirement or at plan wind-down, between taking a defined benefit pension or a plan lifetime income option as a one-time cash payment or as a stream of lifetime annuity payments.
A named fiduciary is the fiduciary explicitly designated in the plan document (or identified through a procedure set out in the plan document) as having authority to control and manage the operation and administration of an ERISA-covered plan.
An out-of-plan lifetime income option is a lifetime income arrangement a participant obtains after rolling defined contribution plan assets into an individual retirement account and purchasing an annuity or similar structure through the retail market.
Participant fee disclosure under ERISA 404(a)(5) is the disclosure that plan administrators of participant-directed individual account plans must give to eligible participants, describing plan-level fees, investment fees and performance, and the dollar amounts charged to the participant's account.
