Many stable value and guaranteed annuity products include restrictions on participant-initiated transactions that are not the result of “benefit responsive events” (i.e. retirement, death, disability, termination, etc.) One such transfer restriction is the industry standard “90 day equity wash” provision. This provision restricts participants from transferring accumulations directly from products such as TIAA Stable Value, TIAA Stable Return Annuity, and Stable Value Collective Trust Funds to certain other plan investment options designated as “Competing Funds”. Competing Funds are plan investment options that generally exhibit a pattern of performance consistent with stability. On TIAA-CREF’s recordkeeping platform, Competing Funds include money market funds, short-term bond funds, the TIAA Real Estate Account, self-directed brokerage windows and certain other guaranteed / stable options. In addition, some lifecycle or target date funds may become designated as competing funds as their allocation glides towards a make-up consisting primarily of short-duration fixed income investments.
equivalent taxable yield
The yield needed from a taxable bond to give the same after-tax yield as a tax-exempt issue.