Variable Rate Guaranteed Interest Contract (GIC) for Stable Value Funds
Variable Rate Guaranteed Interest Contract (GIC) for Stable Value Funds
The value of a Variable Rate GIC
A Variable Rate GIC offers stable value funds guarantee of principal and interest. The contract authorizes withdrawals and transfers for employees in the stable value fund offered by 401(k) or 457 plans.
How our Variable Rate GIC works
The contract interest rate is adjusted each month or quarter, based on the London Interbank Offered Rate (LIBOR), plus a basis point spread determined at the time of purchase. The contract authorizes withdrawals for employee benefit payments and employee directed transfers.
This product is designed for trustees of plans qualified under Section 401(a), including 401(k) plans, as well as collective trust funds composed of 401(a), 401(k) and governmental 457 plans (based on United of Omaha Life Insurance Company’s underwriting requirements).
Early termination option
The contract holder or United of Omaha Life Insurance Company may discontinue the contract for any reason with 30 to 90 days notice prior to the last day of the interest rate period.
Funds deposited are held as part of the United of Omaha Life Insurance Company General Asset Account.