Fund Transfer Review Flashcards
What is the Competing Funds rule?
the competing fund rule restricts you from transferring money directly from any of the funds to money market fund, High quality bond fund, and PCRA
What would you tell a PPT wanting to transfer from the fixed fund to PCRA?
We would not be able to transfer the money directly from the FF to the PCRA at this time. money would have to be transferred to a non competing fund has to stay in the fund for 90 days can move within non competing fund during that time. After 90 days can transfer money to PCRA
what is the equity wash rule?
prohibits a participant from transfering money from a fixed fund to a non competing fund then transfering the money directley back into a competing fund or another fixed for a period of 90 days
what is the 34%/1000 rule?
the 34%/1000 rule is a TRS rule for NFP Plans ( corp:25% or 1000) the amount available to transfer from the fixed fund (s) (GDAH/GFF) is limited to the greater of 34% or $1000 per contract year.
what would you tell a ppt wanting to transfer money from the fixed fund into the MMKT fund?
we wold not be able to transfer the money directly from the FF to the MMKT at this time ( the competing fund rule) we can only move 34% or $1000 ( which ever is greater) from the FF per contract year. (34%/1000)
money would first have to be transfered to a non competing fund has to stay in non competing fund for 90 days can move within non competing funds withing that time. After 90 days can transfer money to MMKT
What would you tell a PPT wanting to transfer money from the fixed fund into the Large Value fund ( con competing fund)?
A maximum of 34% or 1000 whichever is greater can be transfered out of the fixed fund into the Large Value fund . This dollar amount will have to stay wihtin non competing funds for at least 90 days before moving back to a fixed fund or a competing fund. Money can move in between non competing within the 90 days.
What two questions would you ask a ppt if they request a transfer or a rebalance ( if applicable)
Do you want to update future allocation?
Do your want to make changes to any other accounts within TRS ?
what is the fee for PCRA?
$50 Annually
What company do we use for this?
Charles Schwab
Why would a PPT want a PCRA account ?
Allows them to direct purchase and sale within their account
More investment option
Willing to undertake more risk
Has time to monitor and research
What is the minimum amount of the initial transfer to PCRA?
$1000
How much does each transfer after the first have to be?
$250
When is the PCRA fee charged to PPT’s account?
January of the following year and when the participant is terminating the account or at the time of a lump sum term withdrawal.
How much can this PPT trans fer out of the TFLIC Stable fund today?
Transaction/ Transfers
7000.00 as of 4/23/23
What fund rules are associated with the TFLIC stable fund ?
Transactions> transfers>fund rules
transfers not allowed to Hight Quality Bond , Money Market , Max 100/34%
Plan Transfers>Transfer
Round Trip allowed as well.
