| A |
| Accrued Benefit:
The pension benefit you have already accumulated as of a certain date based on
your years of participation in the Plan. |
| Alpha:A measure of
risk-adjusted performance. It represents the difference between a fund's actual
performance and its expected performance given its level of risk as measured by
beta. |
| Annuity: A contract that provides for periodic
income payments for a lifetime, or for a defined period of time, or both. |
| Appreciation: The increase in value of
an asset. |
| Asset Allocation: Investment among a variety
of asset classes, such as stocks, bonds and money market instruments. The objective
of asset allocation is to reduce risk and enhance returns. It is a central concept
in prudent investment management. |
| B |
| Balanced Fund:A
type of fund which creates a balance among its assets typically by including a
mix of stocks, bonds and money market instruments. |
| Beneficiary:
The person or persons you select to receive payment of your Retirement Program
benefits in the event of your death. |
| Benefit Service
(Credit): Benefit service is the amount of hours of service counted toward
your Pension Plan benefit. You earn one year of benefit service for each Plan
year you earn 1,800 or more hours of service. Benefit service is prorated if you
earn less than 1,800 hours of service in a Plan year (calendar year). |
| Beta: The mean market risk of the securities
in a portfolio. This measure reflects the responsiveness of the portfolio to its
corresponding benchmark. By definition, the market beta of the benchmark is 1.0.
If the beta of a fund is 1.05, it is expected to perform 5% better than the benchmark
in an up market, and 5% worse in a down market. (For example if the market is
up 10%, a fund with a beta of 1.05 would be expected to appreciate 10.5% (10%x1.05)). |
| Bonds: A class of assets representing a
loan to the government or a corporation. These securities pay a specific interest
rate over a given period of time, after which the owner receives back his or her
initial investment. |
| Break
In Service: A break in service occurs when you terminate employment or
when you earn less than 501 hours of service in a Plan year. If you have a break
in service, your vesting and the amount of your benefit may be affected. Benefit
service or vesting service will not be reinstated for service forfeited prior
to January 1, 2002. After January 1, 2002, benefit service and vesting service
will always be reinstated regardless of future breaks in service. |
| C |
| Capital Appreciation:An
increase in an investment's value. |
| Capitalization: The size of the company
issuing a stock as measured by its share price times the number of shares outstanding. |
| Cash: Available money, cash or currency. |
| Certificate of Deposit (CD): A negotiable
or transferable receipt payable to a depositor for funds deposited in a bank.
CDs pay interest for a fixed period of time. |
| Collective Trust Fund: A bank-sponsored
fund which brings together the assets of a number of investors to allow broader
availability and more cost-effective investing. |
| Commercial Paper: Promissory notes sold
to the public by large corporations to meet their short-term needs for funds.
Commercial notes can be bought and sold daily with no loss of interest. This liquidity
may be an important consideration when assets are invested for shorter periods
of time. A major component of any money market fund is commercial paper. |
Compensation:
Compensation is defined as all of your wages from a participating
employer in the Retirement Savings Plan plus any amounts
you elect to contribute to the Retirement Savings Plan
or which are excluded from income under a Code Section
125 (cafeteria) plan. Compensation may not exceed $245,000 in 2009 and is adjusted for inflation in future years.
It shall not include severance pay, cash outs of accumulated
paid time off, moving allowances, housing allowances,
tuition reimbursements payment for outplacement services,
and any non-qualified deferred compensation and other
specific items listed in the Pension Plan document.
For the Pension Plan, compensation for years in which less than 2080 hours of
service is earned will be annualized using a pay multiplier based on actual hours
of service.
When calculating the employer matching contribution in the Retirement Savings
Plan, compensation will include lump sum cash outs of accumulated vacation or
paid time off. |
| Compounding: The periodic process by which
interest or return is applied not only to one's savings or investment, but also
to previous interest or returns. |
| D |
| Death Benefit:
A retirement benefit provided to your surviving spouse or beneficiary in the event
you die after you become vested in the Pension Plan, but before your pension begins
(pre-retirement death benefit), or after your pension has started, if you choose
a payment option that provides a continuation of benefits after your death (post-retirement
death benefit). |
| Deferred Vested
Benefit: The pension benefit you are entitled to if you are vested in
the Pension Plan but are less than age 55 at termination of employment. |
| Defined Contribution
Plan: See Retirement Savings Plan. |
| Defined Benefit
Plan: See Pension Plan. |
| Direct Rollover:A
distribution from a 401(k), 403(b) or 457 plan or IRA that is sent directly to
the trustee, custodian, or issuer of the receiving IRA or other qualified retirement
savings plan. |
| Direct Transfer: The movement of money
from one tax-deferred retirement savings plan or IRA to another plan, custodian
or IRA. A transfer does not constitute a withdrawal and does not generate any
taxes. |
| Disability
Retirement Benefit: Pension benefit payable to an employee who has met
disability retirement eligibility requirements. Provides an immediate unreduced
benefit payable at the time of disability. |
| Diversification: Investing in a variety
of investment types within a particular asset class in order to reduce risk and
increase return. |
| Dividend: A portion of net profits declared
by a company's board of directors for distribution to stockholders. |
| Dividend Yield: The average of all stocks
in a portfolio's trailing 12 month dividend income (cash distribution of earnings
to shareholders) divided by its market price on the valuation date. |
| Dollar-Cost Averaging: The practice of
investing equal amounts at regular intervals, regardless of price, to lower the
share/unit cost over time. |
| Duration: The average time to receipt of
all cash flows weighted by their present values. It indicates the price sensitivity
of a bond (or a bond fund) to a change in the general level of interest rates.
The longer the duration, the greater the change in the bond's price to a change
in interest rates, thus the greater the risk. |
| E |
| Early Retirement
Benefit: Reduced pension benefit payable before you are eligible for normal
retirement (See Normal Retirement Age). You are eligible
to elect an early retirement benefit as early as age 55, if you have earned at
least five years of vesting service. |
Early Withdrawal Penalty
A 10% IRS penalty on money that is withdrawn from a tax-deferred retirement savings
plan prior to age 59 1/2. The penalty does not apply in certain circumstances. |
Earnings Per Share
The trailing 12-month net income of a company divided by the number of shares
outstanding. |
| Earnings Per Share Growth: A five year
annualized net income growth rate for the stocks in a portfolio as of the valuation
date. |
| Eligibility:
Employees are immediately eligible to begin participation in the Trinity Health
Retirement Program on date of hire. |
| Employer Matching Contribution: The amount
that your employer may contribute on your behalf (usually expressed as a formula
based on your contributions) to your retirement savings plan. |
| F |
| Final Average Compensation
(FAC): A factor used in your pension benefit calculation. It is the average
of your five highest calendar year compensation amounts while you are a participant
in the Pension Plan (after 1997 for former Mercy Plan participants). |
| (One Half of
the) Five Year Average of the Social Security Wage Base: The Social Security
wage base is an amount established by the IRS on which Social Security taxes are
paid. The Social Security wage base may be adjusted from year to year. Social
Security retirement benefits will not be paid on any pay above this limit. For
2001, the amount is $36,300 or $3,025 monthly. |
| G |
| GIC:Guaranteed
Investment Contract. An insurance contract where money is invested in a general
account of an insurer for a specified interest rate and a set maturity date. Principal
and interest are guaranteed by the insurer. |
| GIC Alternative: Any investment vehicle,
other than a GIC, which provides a guarantee of principal. |
| H |
| Hours of Service:
Hours of service includes each hour for which you are paid for working at Trinity
Health. Non-work hours that you are paid, such as vacations, holidays, sick leave,
severance, and jury duty are included up to a maximum of 501 hours for any continuous
period. You do not earn hours of service for periods of time for which you receive
workers' compensation, unemployment compensation, medical reimbursement payments,
or for vacation or paid time off (PTO) payments that are paid in one lump sum. |
| I |
| IRA:Individual
Retirement Account. An account that allows you to invest on a tax-deferred basis.
Depending on your income, you may be able to contribute to your IRA on a pre-tax
basis. After-tax contributions are also permissible. Any earnings on an IRA are
tax-deferred. |
| Inflation: An economic condition causing
consumers to pay more in the future for goods or services than they would today. |
| In-Service Withdrawal: A withdrawal from
a retirement savings plan by a participant who remains employed. |
| J |
| Joint and Survivor
Option: An optional form of payment under the Pension Plan in which benefits
are paid for your lifetime, and, upon your death, a reduced benefit is paid to
your beneficiary for the rest of his or her life in the amount of 50 percent or
100 percent of the amount you were receiving. The 50 percent Joint and Survivor
option is the normal form of payment under the Pension Plan for married participants. |
| K |
| |
| L |
| Large Capitalization Company Stocks:Stocks
issued by the largest companies in the United States, represented by the Standard
& Poor's 500 Composite Stock Index (S&P500). |
| Life Only Option:
An optional form of payment under the Pension Plan in which you receive monthly
payments throughout your lifetime. Upon your death, all benefits stop. This is
the normal form of payment option under the Trinity Health Pension Plan for a
single participant. |
| Liquidity: The ease with which an investment
may be converted to cash. |
| Lump Sum Payment:
Provides for the disbursement of an employee's retirement benefit in one payment.
You may receive your individual contributions to the Retirement Savings Plan and
your vested Pension Plan Match Account in a lump sum payment when you terminate
employment, regardless of the amount. Your pension benefit can be paid in a lump
sum payment if the value of the vested benefit is less than $10,000. |
| M |
| Market Capitalization:The
value of a corporation as determined by the market price of its issued and outstanding
common stock. It is calculated by multiplying the number of outstanding shares
by the current market price of a share. Average market capitalization is the average
of the values of the corporations in a portfolio. Small cap stock are less than
$2 billion, mid range is $2 billion to $10 billion, and large cap stock is over
$10 billion. |
| Market Value: The sum of the market price
of the securities in a portfolio as of the valuation date, rounded to millions
of dollars. Also, the fund's total net assets. |
| Market Risk: Risk of day-to-day changes
in prices at which a security can be bought or sold. |
| Matching
Contribution: PLEASE NOTE: THE 403(b)/401(k) EMPLOYER MATCHING CONTRIBUTIONS HAVE BEEN TEMPORARILY SUSPENDED EFFECTIVE JULY 1, 2009. THE INFORMATION BELOW RELATED TO EMPLOYER MATCHING CONTRIBUTIONS REFLECT THE PROVISIONS OF THE EMPLOYER MATCHING CONTRIBUTION PRIOR TO THE SUSPENSION. CLICK HERE TO OBTAIN IMPORTANT INFORMATION REGARDING THE TEMPORARY SUSPENSION. Trinity Health will make a 100 percent employer matching
contribution to your Pension Plan Match Account on the first $500 you contribute
to the Retirement Savings Plan. Trinity Health will also make a 50 percent match
on additional employee contributions up to a maximum percentage of compensation
(if greater than $500). |
Maturity: Date on which the principal amount
of a note, draft, acceptance, bond, or other debt instrument
becomes due and payable. Also, termination or due date on which an installment
loan must be paid in full. |
| Medicare:
Administered by the Social Security Administration, Medicare is the U.S. federal
government plan for paying certain hospital and medical expenses for those who
qualify, primarily those over age 65. |
| Money Market: The segment of the financial
market which trades short-term debt securities. |
| Mutual Fund: A fund which pools the investments
of individual investors, providing the benefits of economies of scale as well
as access to investments which may otherwise be unavailable. |
| N |
| Normal Retirement
Age: The earliest age at which a participant qualifies for a normal retirement
benefit under the Pension Plan. Under the Trinity Health Retirement Program the
normal retirement age is 65. You will become vested if you reach normal retirement
age while employed at Trinity Health, even if you don't have five years of vesting
service. |
| Normal Retirement Benefit:
The unreduced pension benefit commencing at normal retirement age. |
| Number of Issues: The number of different
securities held in a portfolio as of the valuation date. |
| O |
| |
| P |
Pay Adjustment
Factor: A factor is applied to your prior pension benefit as of December
31, 2001. It is used in the calculation of your monthly pension benefit under
the new Trinity Health Retirement Program.
It is the ratio (not less than one) of current final average compensation divided
by final average compensation at December 31, 2001 (for former Mercy employees,
final average compensation for this purpose is defined as final average earnings
under the Mercy plan prior to January 1, 2002). |
| Pay Multiplier:
A factor applied to your compensation used in the Pension Plan formula. It annualizes
your compensation if you have worked less than 2,080 hours in a year. |
| Pension Plan:
A Trinity Health sponsored plan that provides a monthly Pension benefit at normal
retirement, based on years of benefit service and final average compensation and
a benefit derived from your Pension Plan Match Account in the Pension Plan, assuming
you contribute to the Retirement Savings Plan in quarters prior to July 1, 2009. |
| Pension
Plan Match Account:An account that is credited with your 403(b) Retirement Savings Plan matching contributions from Trinity Health for quarters prior to July 1, 2009. Your Match Account consists of matching contributions allocated for quarters prior to July 1, 2009, and interest credits earned. |
| Pension
Plan Match Account Interest Rate: The interest rate that is credited to an employee's Pension Plan Match Account annually. This interest rate is set at the beginning of each year based on the U.S. Government five-year Treasury constant maturity rate for November of the prior year. |
| Phased Retirement:
An option under the Pension Plan whereby an employee who has retired under the
provisions of the Plan may return to work after a bonafide termination and continue
to receive a pension benefit. Employees under age 65 are limited to working no
more than 1,300 hours per year. If you work more than 1,300 hours, your benefit
will be suspended until you reach age 65 or terminate employment. For employees
over the age of 65 there are no restrictions as to the number of hours they may
work. |
| Plan Year:
A calendar year. |
| Portfolio:A varied
group of securities owned by an individual or institution. |
| Pre-Tax
Contributions: Refers to contributions you make to the Retirement Savings
Plan before taxes are deducted from your paycheck. |
| Price/Earnings Ratio (P/E): The price of
a stock divided by its earnings per share. It reflects the amount an investor
is willing to pay per dollar of a company's earnings. |
| Prospectus: A formal document describing
an investment opportunity and offering it for sale. |
| Q |
| |
| R |
| Reinvestment:Using
dividends and gains to purchase additional shares in an investment rather than
taking a distribution in cash. |
| Retirement Savings
Plan: Trinity Health's defined contribution plan that enables you to make
pre-tax contributions to an individual account for your retirement. Pre-tax contributions
are made through payroll deductions and determine the employer matching contribution
you are eligible to receive. |
| Return: The amount earned, or lost, on
the original worth of an investment. |
| Risk: A measure of the chance of loss or
not gaining value. Each investment has individual risk characteristics. |
| Rollover IRA: An individual account established
for the purpose of receiving a distribution from a qualified plan, in order to
preserve the tax-deferred status of the account. |
| Roth IRA: An individual investment account
that accepts after-tax contributions. A Roth IRA provides the potential for tax-free
growth, if the account has been open for five years and the investor is at least
age 59 1/2 upon withdrawal. |
| S |
| Salary Reduction Agreement:An
agreement between an employee and employer to defer a portion of the employee's
salary into a retirement savings plan. |
| Security: A contract or document representing
equity ownership or debt. |
| Separate Account: An investment option
offered through an insurance company, maintained separately from the insurance
company's general assets, allowing retirement plan assets to be invested in diverse
securities on a pooled basis. |
| Small Capitalization Company Stocks: Stocks
of smaller companies, which are generally more volatile than larger capitalization
stocks. These often offer higher potential returns than stocks of large companies
over the long run. |
| Social Security:
Provides a monthly benefit to eligible retirees during retirement based on earnings
covered under Social Security. You and Trinity Health contribute equally to the
federal Social Security program. |
| Special Early
Retirement Benefit (75 Points): Benefit provided under the former Holy
Cross Retirement Plan that permits early retirement, with no reduction in a portion
of the benefit amount, if your age at retirement is at least 55 and your age and
benefit service added together total at least 75. |
| Standard Deviation: A measure of dispersion
around the mean or average return. The higher the standard deviation, the greater
the dispersion of returns and the higher the risk (volatility) associated with
the investment. |
| Standard & Poor's 500: A composite
stock index based on stock prices comprising all major industries. Often used
to represent the broad stock market. |
| Stock: A share of ownership in a corporation. |
| Synthetic GIC: An investment vehicle where
a portfolio trustee signs an agreement with both an investment manager (usually
a bond manager) and a wrap provider (usually a bank or insurance company). The
trustee retains asset ownership on the investment portfolio and the wrap provider
guarantees the principal on the investment portfolio for a fee. The wrap provider
will also usually provide an interest rate on the portfolio which is reset periodically. |
| T |
| 10 Years Certain
and Life Option: An optional form of payment under the Pension Plan in
which you receive monthly payments for your lifetime with the guarantee that if
you die before you have received 10 years of payments, your beneficiary will receive
the remainder of the 10 years. If you die after the 10-year period, no further
benefits are payable. |
| Tax-Deferred:An
IRS-approved delay in the payment of taxes on income. For example, taxes on annual
contributions to a retirement savings plan or IRA may be deferred until the money
is withdrawn. |
| Treasury Bills (T-Bills): A U.S. Government
short-term security sold to the public. T-Bills mature in periods of 30 days,
or 13, 26, or 52 weeks. Because T-Bills are sold at a discount, the interest earned
is the difference between the discounted purchase price and the amount the government
pays at maturity. |
| U |
| Unit (or Share) Value:The
price of an interest in any investment option. The value of a unit typically varies
on a daily basis. |
| V |
| Variable Annuity:An
investment option offered through an insurance company whose underlying reserves
are invested, on a pooled basis, in one or more of the insurer's market valued
separate accounts. |
| Vested:
Your right to receive the benefit you earned as a participant in the Retirement
Program. You are vested after you have earned a designated number of years of
vesting service, or you reach age 65 while employed at Trinity Health. In order
to be vested in the Pension benefit, you must have five years of vesting service
or be employed by Trinity Health when you reach age 65. The Pension Plan Match
Account requires three years of vesting service, or be employed by Trinity Health
when you reach age 65. |
| Vesting Credit:
See Vesting Service |
| Vesting Service:
Used to determine when you are vested in your Pension and Retirement Savings Plan
employer matching contributions. One year of vesting service is granted for 1,000
or more hours of service in a plan year. |
| Volatility: Used interchangeably with "risk."
Gauge of an investment's tendency to move up and down in price. |
| W |
| |
| X |
| |
| Y |
| Yield:Percentage
return on an investment. For bonds, yield is calculated by dividing the coupon
by the market price. For stocks, yield refers to dividend yield, which is dividends
divided by market price. |
| Yield to Maturity: The single discount
rate that sets the present value of all cash flows from a fixed interest security
equal to the current price. |
| Z |
| |
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