Stable value investment products are offered to ERISA-qualified Defined Contribution [401(k)] and Profit Sharing plans. As of December 31, 2008, stable value assets totaled approximately $642 billion.
Synthetic GICs provide all the benefits of Traditional GICs and Separate Account GICs plus direct ownership of the underlying assets. The investment performance of the underlying portfolio is reflected in the book value crediting rate. Gains and losses are amortized over future periods (i.e., usually equal to the duration of the underlying portfolio). This process generates a smooth, predictable rate of interest used to credit earnings to participants' accounts.
Synthetic GICs are offered in either a Traditional or Global structure for either a Constant Duration or Liablility Funding investment strategy. Sponsors select an investment manager that will best meet their plan's investment objectives. To protect the plan's stable value fund from market fluctuations, Pacific Life provides a book value wrap contract to ensure that participants receive book value benefit responsiveness.
If you would like to receive more information about our Synthetic GICs, please call (800) 800-7646, extension 4487, or email SynGic@PacificLife.com