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Option C Fair Market Value Adjustment Is in Effect for Cash Distributions in July 2022

Authored by: Jerry Rich
Date: July 9, 2022

For distributions or transfers from Option C, a Fair Market Value (FMV) is being applied for July 2022 transactions. For such transactions, the adjustment percentage is 98.3% of Option C’s annuitizable value. The FMV adjustment, if any, is calculated after the close of a month’s accounting period (June in this instance) to be in effect for the following month (July).

Since the FMV has not been required for some time, FCMM reminds Option C investors of the following information …

The Option C Lifetime Fund is a collective investment fund which aims to provide steady long-term earnings to the participant. Using a balanced investment approach, Option C is designed to be less volatile and smooth out market returns for more stable earnings rates over time.

Option C is primarily structured to offer reliable value that can be fully converted to a Monthly Income Benefit ("in-plan annuity"). Alternatively, when taken as a cash value for other reasons (such as transfer to other investments or cash distributions or rolled out of the Plan), a fair market value adjustment (reduction) may be applied when accrued annuity value is greater than current portfolio market value of Option C.