Collective Investment Trust Participation Agreement

Plan size: The size of the plan can be an important consideration and even a limiting factor: mutual funds are often better able to meet the needs of smaller plans that do not have the assets to achieve the minimum investment required for ICT (often $10 million, but vary). On the other hand, very large projects may have the scale and interest of seeking adaptation of an ISA if the administrators deem it appropriate, which corresponds to the needs of their plan. CITs can probably adapt somewhere in the middle, but can be used by medium, large and mega planes. PARTICIPATION AND PARTICIPATION: THE “CITs” accept the investments of program participants by: (1) the performance plans of eligible staff under sections 401 (a) and 501 (a) of the 1986 internal income code; 2. some plans managed by a state employer; and (3) separate accounts of certain funds in the group or insurance company that consist exclusively of assets from the types of previous plans. An investment in a CIT can only be made if all the conditions of participation are met and the investment is approved by the plan sponsor or by any other designated agent entitled to plan investments directly. But how can sponsors be sure that CITs are an appropriate investment tool for their plan? In the following pages, we offer a brief discussion on the history of CITs, how they differ from other investment vehicles, and what trustees can do to add them to a DC plan. Because they have qualified pension plans, they are generally required to comply with the current provisions of the Employee Retirement Income Security Act of 1974, as amended (ERISA). The agent is subject to supervision and regulation by the Office of the Comptroller of the Currency for national banks or public banking authorities for public banks and the Ministry of Labour (DOL). As such, a CIT agent is held under ERISA trust standards for the assets of the ERISA plan invested in CIT. However, unlike investment funds, CITs are generally not registered with the Securities and Exchange Commission (SEC) or a National Securities Commission due to exemptions from the registration requirements of federal securities laws.

This material is intended only for education and does not serve as investment, tax or legal advice. This material is general in nature and is not intended for a class of investors and should not be considered as individualized, such as a recommendation, investment advice or a proposal to participate or not participate in an investment-based approach. Neuberger Berman does not provide this material in trust and has a financial interest in the sale of its products and services. Information is obtained from sources considered reliable, but there is no guarantee or guarantee as to their accuracy, completeness or reliability. All information is up to date at the time of this material and can be changed without notice. Neuberger Berman is not responsible for updating opinions or other information contained in this document. Interest in collective investment funds (CITs) has continued to grow under AD Performance Plans (DEFINED Contribution, DC), with modern CITs being more transparent, easy to use and more flexible, unlike previous versions of CITs, mainly used by performance-based plans. Due to the multiplicity of investment vehicles currently available for retirement plans, including investment funds, CITs and separate institutional accounts (ISAs), it is more difficult and more important than ever to understand the different vehicles and make informed decisions. Plan agents must assess many factors to determine options that meet the needs of participants and their beneficiaries. Complementary considerations: Plan trustees should also carefully consider the vendor`s available investment universe, its own investment policy (IPS), business and operational considerations, market trends,