Stable Value Investments 



    Many defined contribution pension plans offer participants stable value funds as a conservative investment option. Defined benefit pension plans and health and welfare benefit plans also may invest in stable value funds. Stable value funds primarily invest in guaranteed investment contracts (GICs) issued by insurance companies or banks, synthetic GICs, or in a common collective trust or mutual fund which invests in these securities.

    FASB Accounting Standards Codification™ (ASC) 962-325-35, Plan Accounting - Defined Contribution Pension Plans,  and ASC 965-325-35, Plan Accounting - Health and Welfare Benefit Plans, specify how certain stable value investments are reported in the financial statements of defined contribution pension and health and welfare plans. The EBPAQC has compiled the following tools and resources to assist members in understanding and auditing stable value investments.

    Technical Guidance

    FASB ASC 962-325-35 and ASC 965-325-35 

    Center Tool

    EBPAQC "Topix" Primer, Stable Value Funds and Investment Contracts—An Overview
    This non-authoritative practice tool developed by the EBPAQC provides general and background information on stable value investments, along with information about the relevant auditing and accounting standards, in an easy-to-understand format.




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