Frequently asked questions|Putnam Stable Value Fund

What types of plans may be invested in stable value?

Stable value funds are conservative investment options created exclusively for U.S. qualified retirement plans, including 401(k), profit sharing, money purchase, governmental 457 plans, and certain 403(b) plans. Stable value funds are not available to defined benefit plans, IRAs, most 403(b) plans, SEP, or SIMPLE plans.

What types of stable value vehicles are available?

Third-party stable value funds are typically structured as collective investment trusts (CITs) or as a segregated account for a specific plan or trust. There are no stable value mutual funds. Additionally, there are fund vehicles issued by insurance companies that include guaranteed investment contracts backed by the issuing insurance company’s general account assets or insurance separate account contracts that are backed by a segregated asset account.

Can Putnam Stable Value Fund (PSVF) accept 403(b) assets?

Plans established as 403(b) are a special case. Only 403(b)(7) church plans are eligible to invest in collective investment trusts (CITs). Typically, any other 403(b) plans are not eligible to invest in PSVF because they are restricted to investing exclusively in mutual funds and annuities.