Defined terms for the annuity market and lifetime income landscape.
An ownership-based claim is a lifetime income arrangement in which the individual retains direct rights over the underlying assets, producing income from assets they own rather than from a contractual claim against a third party.
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.
A participation rate is the contractually specified percentage of an underlying index's positive return that is credited to a fixed indexed annuity contract during a defined crediting period, with the remaining portion of the index return retained by the carrier as part of the cost structure.
Path dependency is the property of a system in which the outcome at any point depends on the specific sequence of events that produced it, not merely on the total amount or distribution of those events.
