AB (or AoB) Alliance of Baptists ABC American Baptist Churches ABCUSA American Baptist Churches USA Abutment The tooth or root that supports bridgework or another structure to replace certain natural teeth. Accelerated benefit A provision in a life insurance policy that allows a terminally ill person to collect a percentage of the policy's face value before death. The MMBB plan makes 50% of its group term life insurance under the Death Benefit Plan available to a terminally ill person. Accelerated contributions (catch-up contributions) For Tax-Sheltered Annuity plans (TSA), extra contributions a participant may make if the participant is at least 50 years of age and has at least 15 years of service with the employer. Accident insurance Coverage for bodily injury due to an accident. Accidental death and dismemberment (AD&D) insurance Coverage for death or loss of a body part or function due to an accident. Accidental death benefit An additional benefit payable under an insurance policy for death due to an accident. Account balance plan (cash balance plan) A type of defined benefit plan that expresses an employee's retirement benefit as an account balance growing at a rate of interest that is announced to employees in advance each year. The company adds credits to the balance each year. return to top Accountable plan A plan established by church board resolution that contains criteria for reimbursement of {ministry-related expenses}. Expenses reimbursed under an accountable plan meeting IRS requirements are reported to the church, not the IRS, and are not taxable to the employee who receives them. The plan must require that: (1) only business expenses are reimbursed; (2) adequate accounting of an expense must be provided within a reasonable time--no more than 60 days after it is incurred; (3) any excess reimbursement or allowance must be returned to the employer within a reasonable time--no more than 120 days after it is paid; and 4) reimbursements must come out of the employer's funds. The reimbursements are not reported as income to the employee on his or her {Form W-2}, and the employee does not claim any deductions for these expenses. The plan should be in writing, clearly specifying expenses the church will reimburse as well as documentation and reporting requirements. MMBB can provide a sample resolution. Accrued benefits A participant's benefits in a retirement plan. For a defined benefit plan, benefits that a participant accumulates based on years of service, expressed as a dollar amount of benefit to begin at the plan's normal retirement age. For a defined contribution plan, the accrued benefit is the balance in the participant's account. Accumulation fund The savings component of a universal life insurance policy. When a policyholder pays premiums to a universal life insurance policy, part of each premium goes to the savings component, which earns interest, and part goes to provide the life insurance. The insurance component is called the mortality charge. As a policyholder ages, the mortality charge rises. In order to keep the policy in force, the policyholder must pay at least enough in premiums to cover the mortality charge. However, the participant can increase or decrease contributions to the savings component as desired. If the policyholder contributes enough to the accumulation fund in the early years of the plan, the fund may be enough to pay the mortality charge later in life, and the participant may be able to stop paying any premiums if he or she wishes. At MMBB, all our retirement plans accumulate assets in the form of accumulation units. For this reason, a member's account could be considered an accumulation fund. Accumulation units The Retirement Plan portion of the Benefits for Life program, TAS and TDA are all defined contribution plans. For these plans, accumulation units are ownership shares of the retirement plans. These shares are purchased by premiums paid into a participant's account. The value of the units depends on the current market value of the funds into which the contributions are directed. Active member (at MMBB) At MMBB, a member for or by whom contributions are currently being made. Actively at work Some plans require an employee to be actively at work to receive a plan contribution, or to be actively at work on the first day of eligibility for benefits to begin. An employee is considered actively at work if he or she is present on the job, or otherwise meets the plan's requirements for being actively at work. For example, an employee may be considered actively at work for plan purposes on a paid holiday if he or she was present on the job for the last regularly scheduled work day before that holiday. Activities of daily living (ADLs) Activities such as dressing, feeding, toileting and transferring between bed and chair that a person needs to perform for self-care. ADLs may help determine a participant's eligibility for benefits under a {long-term care} plan. Actuarial factor For the MMBB Retirement Plan, TAS and TDA, a factor used to determine the retirement income a participant can purchase based on the participant's age at retirement (and the age of the spouse or other joint annuitant, if there is one) and an assumed positive annual investment return of 4% during the time the annuity is paid. The amount of retirement income is then adjusted each year based on the investment experience of the underlying funds and the mortality experience of the members. Actuarial value Value of a property interest or right that someone owns based on life expectancy tables. Actuaries Professionals who are trained in the technical aspects of insurance and related fields, especially in the mathematics of benefits such as calculating premiums and annuity factors. return to top Acupuncture The practice of piercing the body with fine needles to relieve pain, induce anesthesia and treat illness and injury. Acupuncturist A qualified provider who practices acupuncture. Acute care Treatment for a severe short-term health problem. AD&D See accidental death and dismemberment. Additional elective deferrals Members who will be age 50 or older at the end of a plan year may contribute a catch-up elective deferral contribution to a 401(k) or 403(b) plan. The amount is the lesser of: The dollar amount for the year; or The employee's includable compensation, reduced by any non-catch up elective deferrals for the year. For 2006, the dollar amount of additional elective deferrals allowed is $5,000. ADLs See activities of daily living. Administrator A person appointed by the court to represent an estate when the deceased did not have a will or when the will does not name an executor. May also be called a personal representative. Adoption assistance program A program to reimburse employees for their eligible expenses to legally adopt a child. The program may cover expenses such as adoption agency and legal fees, pregnancy and hospital expenses of the birth mother, and immigration and naturalization expenses. Adoption leave Leave of absence granted by a company due to adoption or placement of a child for purposes of adoption. Adult care assistance See adult care services. return to top Adult care services Services to allow a disabled or elderly adult to function at home or in a center. Adult day care Services during the day to allow a disabled or elderly adult to function, either at home or in a center. Adult foster care See adult care services. Advance notification The advance notice an employee must give an employer when requesting a leave under the Family Medical Leave Act. Your employer can tell you what situations require advance notice, and how much advance notice is required. Advanced radiological imaging Medical tests including MRIs, MRAs, CAT scans and PET scans. After-tax contributions Contributions to a qualified plan from an employee's pay after applicable federal, state and local taxes are withheld. After-tax premiums Premium payments taken from an employee's pay after applicable federal, state and local taxes are withheld. Age reduction schedule Under a disability plan, the schedule showing when benefits stop or are reduced when the employee reaches a particular age, or combination of age and number of years disabled. Such a schedule may also apply to life insurance plans. All-risk A term used by the insurance industry to describe broad forms of coverage. It is misleading because no property or liability insurance policy provides truly all-risk coverage. A better term for broad coverage is open peril. Allergy testing/treatment Testing to determine the allergens to which a person is allergic and treatment to reduce sensitivity to that allergen. return to top Allocation Distribution of an amount among various choices. A contribution may be allocated among available investment funds (also called an investment allocation or asset allocation), or an employer contribution may be allocated to the accounts of eligible participants. Allowable amount The part of a provider's charge that is eligible for reimbursement (full or partial) by a plan. Alternate payee A spouse or former spouse with an interest in plan benefits under the terms of a Qualified Domestic Relations Order (QDRO). Alternate valuation date A date no more than six months after a person's death that may be used for evaluating assets in an estate for federal estate taxes. Alternative care or alternative treatment Under some mental health and chemical dependency programs, alternative care is more intensive than outpatient treatment and less intensive than inpatient treatment. Examples may include partial hospitalization, residential treatment or care in a halfway house or group home. Ambulance A vehicle that transports patients with acute medical conditions and provides paramedic and stabilizing medical services. Ambulatory care Services provided to an outpatient. Ambulatory care facility A facility providing outpatient services. American Jobs Creation Act of 2004 An act that imposed new requirements on charitable contributions of vehicles, allowed a taxpayer to take an itemized deduction for state and local general sales taxes, imposed new limitations on rabbi trusts, and authorized the IRS to enter into installment agreements with taxpayers for less than the full amount of their tax liability. Anesthesia Local anesthesia involves administering agents to achieve the loss of conscious pain in a specific part of the body. General anesthesia involves administering agents to render the patient completely unconscious and without conscious pain response. return to top Anesthetic A drug that produces loss of feeling. Annual amount In a nonqualified deferred compensation plan, the amount credited to a member's account in any year of plan membership. Annual compensation For MMBB {plans, the} sum of the following: (a) Annual cash salary (not reduced by TAS contributions), plus (b) A reasonable allowance of not less than 25% of the annual cash salary for parsonage or equivalent living quarters, including utilities, if provided, or (c) A cash rental or housing allowance, including utilities, if provided, or (d) The estimated cash value of room and board, if provided. Annual enrollment The annual period during which employees may make changes in their benefits enrollment. Annuitant A person entitled to receive income payments under an annuity. Annuitized member/annuitant At MMBB, a member who has converted part or all of his or her account to an annuity. Annuity A contract that provides income in periodic payments for a specific period of time such as a number of years or for life, or payments made under such a contract. Annuity factor A factor in the calculation used to determine the amount of an MMBB retirement plan member's annuity. The amount of the member's retirement account to be converted to an annuity is divided by the member's annuity factor. The annual factor reflects the actuarial factor for the form of income elected, the member's age and the coannuitant's age, if applicable, and a {4% advance earnings assumption}. Annuity Fund The financial pool out of which monthly annuity income is paid to MMBB annuitants. The Annuity Fund's investment strategy is designed to produce a good return, with more stability and less volatility than the MMBB equity funds and the Balanced Fund. As with the other MMBB funds, the Finance Committee of MMBB's Board of Managers monitors the fund's performance and adjusts its holdings as needed. Currently, approximately 60% of the Annuity Fund is invested in the Balanced Fund and the remainder is invested in hedge funds, stable value investments and forestry. Annuity options Choices of different forms of retirement income available to a participant. return to top Annuity payout value (first year) On a member's annuity start date, part or all of the member's MMBB account is converted to a set number of annuity units. The annuity payout value determines the amount of income the member receives for each annuity unit in a given calendar year. The payout value is adjusted each year to reflect the investment and mortality experience of the annuity pool in the previous year. Annuity payout value (from second year) MMBB annuity amounts change each January 1 and apply to that calendar year based on changes in the year's annuity payout value, which is the greater of: 1. The annuity unit price as of the previous September 30, adjusted for mortality experience; or 2. The running average of the annuity unit prices for the six months ending the previous September 30, adjusted for mortality experience. While there is no cap on the increase in the annuity payout value, under current administrative provisions annuity payments will not drop more than 5% in any year, regardless of the Annuity Fund's investment experience. Annuity start date The date a member chooses to begin monthly retirement income from MMBB (an MMBB annuity). The earlier the date for a given member, the smaller each payment will be because an earlier annuity start date will require benefits to be paid over a longer period of time. An earlier start date may also produce a smaller amount because contributions will be made over a shorter period of time. Other factors that change over time, including investment results, the annuity unit price, and the annual annuity payout value may either increase or decrease the monthly amount. Annuity trust A type of {charitable remainder trust} that pays a fixed amount regularly according to its value. Annuity unit When an MMBB retirement plan member converts an account to an annuity, that member is credited with a set number of annuity units, which generally remains constant throughout retirement. For some forms of joint annuity, the number of units may change when the member or spouse dies. The number of annuity units credited to the member depends primarily on the dollar amount converted and the annuity unit price at that time. Other factors include the form of annuity selected, the life expectancy of the member and the life expectancy of the joint annuitant, if the member elects a joint annuity. The amount of monthly annuity you receive is based on the number of annuity units you have and the annual annuity payout value applied to those units. Annuity unit price The price at which a unit of MMBB retirement annuity can be purchased on a given date, based on the investment experience of the Annuity Fund. The annuity unit price is calculated by dividing the Annuity Fund by the number of outstanding annuity units. In an up market, the annuity unit price is likely to be higher than it would be in a down market. A given dollar amount purchases fewer annuity units when the annuity unit price is higher than when the price is lower. The dollar amount of account value that is converted to an annuity, and the annuity unit price, determine the member's set number of annuity units. Annuity units Shares of the annuity fund, purchased with the cash value of the accumulation units at retirement. The value of annuity units fluctuates with investment and mortality experience. Any-occupation policy A type of private disability insurance that pays benefits if the insurance company determines that an insured person can't perform any job for which education and training qualify him or her. AOB Alliance of Baptists Appliance In dental plans, a device used to provide function or to heal. A fixed appliance is attached to the teeth. A prosthetic appliance replaces a missing tooth. return to top Appreciation Increase in the value of an investment. Arbitration A process in which independent persons called arbitrators reach a decision that is binding upon parties in a dispute. Sometimes disputing parties agree to take their claims to arbitration. Some contracts require arbitration to settle disputes, and laws in a particular area may require arbitration for certain types of cases. Archer medical savings accounts (MSAs) Archer MSAs, or medical savings accounts (MSAs), are trusts or custodial accounts under Sec. 220 of the Internal Revenue Code that can only be established along with the purchase of qualifying high-deductible health insurance plans. These vehicles to set aside money for medical costs began as a pilot program established under the Health Insurance Portability and Accountability Act (HIPAA) of 1996, and have been extended several times. Individuals with qualified high deductible health plans may now establish health savings accounts (HSAs) which have wider application and fewer restrictions than Archer MSAs. If an individual has both an MSA and an HSA, the contribution limits for the accounts must be coordinated. Asset Anything belonging to a person or organization that has commercial or exchange value or future economic value. Asset allocation Investing in different types of investments at the same time, such as stocks, bonds and money market instruments. Asset classes Types of investments such as stocks, bonds and money market instruments. Asset managers Money managers who typically invest monetary assets. Assignment Assigning benefits to someone else. Generally, qualified plan benefits cannot be assigned to someone other than the employee or another participant, such as a dependent child covered under a medical plan. However, some life insurance plans allow the participant to assign the life insurance policy to someone else. And under a pension plan, a court may split a pension between a participant and a former spouse under a Qualified Domestic Relations Order (QDRO). Assisted living facility A shared, supervised residence for those who cannot live independently. Assumptions (MMBB annuity estimates) Estimates of retirement income from MMBB assume: " Annual investment growth at the rate shown on the estimate until the annuity start date. This rate does not reflect the performance of any MMBB investment fund or predict or guarantee future performance. " Annual compensation increases at the rate shown on the estimate (0% if the member is within a year of his or her annuity start date). " No change in the {annuity unit price} and annuity payout value between the estimate date and the annuity start date. " The 120-monthly payments certain guarantee applies to the annuity payments. return to top Attained age A person's age at his or her latest birthday.