FDM 450 Examples
How to Report Selected Assets, Income, Liabilities, & More in FDM 278
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December 2009
Office of General Counsel
FDM Program Director
FDMWebmaster2@conus.army.mil
Table of Contents
Introduction 3
Top ten errors Filers make on SF 278s 7
Internet resources 9
Summary Chart: SF 278 Contents & Report Type 10
Helpful Hints 13
Sample eMail Notice to SF 278 Filers Using FDM 278 15
Filer’s 401(k) 16
401(k) Plan—Spouse’s 22
529 Plans 23
Annuities 26
Asset Management Account 30
Defined Benefit Pension Plan 33
Defined Contribution Pension Plan 35
Non-Government Employment 37
Employer—Your Spouse’s 39
Exchange-traded Fund (ETF) 40
Government-Sponsored Corporation—Stock 41
Honoraria 42
Individual Retirement Account 43
Liabilities 48
Life Insurance 49
Limited Partnership (LP) 53
Managed Account 54
Real Estate 55
Real Estate Investment Trust 56
Mutual Fund 57
Stocks 58
TIAA-CREF 59
Trusts 60
Financial Assets, Property Interests, and Income Disclosed on SF 278 Reports 63
Introduction
The purpose of the SF 278, Public Financial Disclosure Report, is to assist employees and their agencies avoid conflicts between official duties and private financial interests or affiliations.
This guide is for Ethics Counselors to assist their SF 278 Filers. It includes a summary chart of reportable items, Helpful Hints, a suggested email notice to SF 278 Filers, and provides a definition, the general rule regarding reporting selected items, and shows how to report examples in the Army’s Financial Disclosure Management (FDM) electronic filing program, . At the end of this guide is a general listing of selected financial assets, property interests, and income disclosed on the SF 278. The FDM Glossary, , defines these and other terms used in FDM.
The SF 278 Incumbent report wizard navigation bar has these section headings to guide report Filers:
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(New Entrant SF 278 filers do not report Transactions or Gifts and the New Entrant report wizard navigation bar omits those.)
The examples used are based on these assumptions:
1. Unless otherwise noted, the directions about what to report apply to the Filer, the Filer’s spouse, and the Filer’s dependent child(ren).
2. The assets and liabilities in the examples meet the reporting thresholds:
a. Asset of Filer, spouse, or dependent child: value at end of reporting period was greater than $1,000 or income produced (dividends, capital gains, rent) during the reporting period was greater than $200.
b. Honoraria received by Filer or spouse: amount received by filer or spouse during the reporting period was greater than $200.
c. Earned income of Filer: amount from any one source during the reporting period was greater than $200.
d. Earned income of spouse: amount from any one source during the reporting period was greater than $1,000.
e. Liability of Filer, spouse, or dependent child: amount owed to any one person or entity was greater than $10,000 at any time during the reporting period.
Excepted Investment Fund (EIF): In completing the SF 278, it is helpful to understand the concept of an excepted investment fund (EIF). An EIF is a pooled investment vehicle with these characteristics:
a. it is widely held;
b. it is independently managed (the filer neither exercises control over nor has the ability to exercise control over the financial interests held by the investment vehicle); and
c. it is publicly traded or available OR it is widely diversified. (It is widely diversified if it holds no more than 5% of the value of its portfolio in the securities of any one issuer (other than the U.S. Government) and no more than 20% in any particular economic or geographic sector.)
If an investment vehicle satisfies the EIF requirements, Filers are not required to report each of the underlying assets or holdings in that investment vehicle. Instead, Filers report the investment vehicle itself. For example, many mutual funds meet the definition of an EIF. A Filer owning shares of a mutual fund, reports the full name of the mutual fund, but not the companies that the mutual fund owns an interest in.
Some investment vehicles (e.g., IRA, 401(k), separately managed account, asset management account) never meet the requirements of an EIF, and Filers will always report their underlying assets. FDM provides an “underlying assets” feature that helps Filers group such assets together on their report. See examples of FDM’s underlying assets feature in the 401(k) and IRA areas below.
Reporting Sold Assets
Filers must report assets that produced more than $200 in income during the reporting period even if sold during the reporting period if the sale produced income (even though the Filer no longer owns the asset at the end of the period covered by the SF 278 report). Encourage Filers to check their records for assets sold within the time period for the report. They should not rely on “year end” financial statements that show only what is owned at the end of the reporting period. Filers report the sold asset (in the FDM Asset section), lowest valuation category at the end of the reporting period, and check the appropriate box for income earned during the reporting period.
Valuation Rules
Valuation of interests in property (5 CFR § 2634.301(e)). A good faith estimate of the fair market value of interests in property may be made in any case in which the exact value cannot be obtained without undue hardship or expense to the filer. Fair market value may also be determined by:
(1) The purchase price (in which case, the filer should indicate date of purchase);
(2) Recent appraisal;
(3) The assessed value for tax purposes (adjusted to reflect the market value of the property used for the assessment if the assessed value is computed at less than 100 percent of that market value);
(4) The year-end book value of nonpublicly traded stock, the year-end exchange value of corporate stock, or the face value of corporate bonds or comparable securities;
(5) The net worth of a business partnership;
(6) The equity value of an individually owned business; or
(7) Any other recognized indication of value (such as the last sale on a stock exchange).
Valuation of gifts and reimbursements (5 CFR § 2634.304(e)). The value to be assigned to a gift or reimbursement is its fair market value. For most reimbursements, this will be the amount actually received. For gifts, the value should be determined in one of the following manners:
(1) If the gift has been newly purchased or is readily available in the market, the value shall be its retail price. The filer need not contact the donor, but may contact a retail establishment selling similar items to determine the present cost in the market.
(2) If the item is not readily available in the market, such as a piece of art, a handmade item, or an antique, the filer may make a good faith estimate of the value of the item.
(3) The term readily available in the market means that an item generally is available for retail purchase in the metropolitan area nearest to the official's residence.
Note: The market value of a ticket entitling the holder to attend an event which includes food, refreshments, entertainment or other benefits is the face value of the ticket, which may exceed the actual cost of the food and other benefits. The value of food and beverages may be excludable under Sec. 2634.105(h)(4), if applicable, by making a good faith estimate, or by determining their actual cost from the caterer, restaurant, or similar source.
Spouses & Dependent Children’s Interests (5 CFR § 2634.309)
(a) Special disclosure rules. Each report required … shall also include the following information with respect to the spouse or dependent children of the reporting individual:
(1) Income. …
(i) With respect to a spouse, the source but not the amount of items of earned income (other than honoraria) which exceed $1,000 from any one source; and if items of earned income are derived from a spouse's self-employment in a business or profession, the nature of the business or profession but not the amount of the earned income;
(ii) With respect to a spouse, the source and the actual amount or value of any honoraria received by or accrued to the spouse (or payments made or to be made to charity on the spouse's behalf in lieu of honoraria) which exceed $200 from any one source, and the date on which the services were provided; and
(iii) With respect to a spouse or dependent child, the type and source, and the amount or value (category or actual amount, …), of all other income exceeding $200 from any one source, such as investment income from interests in property (if the property itself is reportable …).
Example 1. The spouse of a filer is employed as a teller at Bank X and earns $23,000 per year. The SF 278 Filer must report that the spouse is employed by Bank X, but not the amount of the spouse's earnings.
Example 2. The spouse of a reporting individual is self-employed as a pediatrician. The report must disclose that he is a physician, but need not disclose the amount of income.
(2) Gifts and reimbursements. Report gifts and reimbursements received by a spouse or dependent child which are not received totally independent of their relationship to the filer.
(3) Interests in property, transactions, and liabilities. Filer reports all information concerning property interests, transactions, or liabilities of a spouse or dependent child, unless the following three conditions are satisfied:
(i) The filer certifies that the item represents the spouse's or dependent child's sole financial interest or responsibility, and that the filer has no specific knowledge regarding that item;
(ii) The item is not in any way, past or present, derived from the income, assets or activities of the filer; and
(iii) The filer neither derives, nor expects to derive, any financial or economic benefit from the item.
Note: One who prepares a joint tax return with his spouse will normally derive a financial or economic benefit from assets held by the spouse, and will also be charged with knowledge of such items; therefore he could not avail himself of this exception. Likewise, a trust for the education of one's minor child normally will convey a financial benefit to the parent. If so, the assets of the trust would be reportable on a financial disclosure statement.
(b) Exception. For reports filed as a new entrant, nominee, or candidate under Sec. 2634.201(b), (c), or (d), no information regarding gifts and reimbursements or transactions is required for a spouse or dependent child.
(c) Divorce and separation. A reporting individual need not report any information about:
(1) A spouse living separate and apart from the reporting individual with the intention of terminating the marriage or providing for permanent separation;
(2) A former spouse or a spouse from whom the reporting individual is permanently separated; or
(3) Any income or obligations of the reporting individual arising from dissolution of the reporting individual's marriage or permanent separation from a spouse.
Assisting Filers
Ethics officials may find the following information useful in tailoring a notice to supported Filers to eFile.
Summary Chart
On pages 10-12 is a summary chart showing examples of what to report and what need not be reported. This chart was compiled from the OGE web site SF 278 Frequently Asked Questions, , and after reviewing an OGE regulation, 5 CFR Part 2634, , that sets forth the reporting requirements for the SF 278.
Thereafter is a “Helpful Hints” section, followed by selected assets and examples for reporting them in FDM 278 and a sample email notice for your tailoring.
Disclaimer: The use of names of actual companies and funds as examples is not an endorsement of these entities.
Send suggestions or comments about this guide to the FDM Webmaster, FDMWebmaster2@conus.army.mil.
From OGE, the top ten errors Filers make on SF 278s:
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Internet resources
From OGE; use in researching financial holdings.
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Summary Chart: SF 278 Contents & Report Type
A Filer must complete different parts of the SF 278 report covering different time periods depending upon the type of report filed. For Incumbent (annual) reports due May 15, 2009 the period covered is all of calendar year 2008.
Termination and combination Incumbent/Termination reports cover the prior calendar year through the Termination date. The combination Incumbent/Termination allows Filers who will leave Government service on/after 15 May and before 13 August to file a combined report instead of two separate ones.
|Report Part |New Entrant |Incumbent |
|Assets: |Preceding 12 months |Preceding Calendar |
|For you, your spouse, and dependent children, report the identity and valuation category of each | |Year |
|asset held for investment or the production of income which had a fair market value exceeding $1,000 | | |
|at the close of the reporting period, or which generated more than $200 in income during the | | |
|reporting period, together with such income. Report personal savings and/or checking accounts in a | | |
|single financial institution if they total more than $5,000. | | |
| | | |
|Examples: Real estate; Stocks, bonds, securities, and future contracts; Livestock owned for | | |
|commercial purposes; Commercial crops, either standing or held in storage; Antiques or art held for | | |
|resale or investment; Beneficial interests in trusts and estates; Deposits in banks or other | | |
|financial institutions; Pensions and annuities; Mutual funds; Accounts or other funds receivable; | | |
|and Capital accounts or other equity interests in businesses. | | |
| | | |
|Do not report: your personal residence (unless rented out); Federal Government salary; Federal | | |
|Government retirement benefits (e.g., social security, veterans benefits, Thrift Savings Plan); any | | |
|personal liability owed to you, your spouse or dependent child by a spouse or dependent child, or by | | |
|a parent, brother, sister or child of you, your spouse, or dependent child; and alimony. Exclude also| | |
|any deposits aggregating $5,000 or less in personal savings accounts in a single financial | | |
|institution. | | |
|Income: |Preceding 12 months |Preceding Calendar |
|For you, report the source and actual amount of earned and other non-investment income that exceeded | |Year |
|$200 during the reporting period from any one source. Such income includes: fees, salaries, | | |
|commissions, compensation for personal services, retirement benefits, and honoraria. For your spouse,| | |
|report the source and amount of honoraria that exceeded $200 during the reporting period from any one| | |
|source and the source, but not the amount, of any other non-investment income that exceeded $1,000 | | |
|during the reporting period. Note: reporting earned or other non-investment income of your dependent | | |
|children is not required. | | |
| | | |
|Exclude any income from employment by the United States Government and from any retirement system of | | |
|the United States (including the Thrift saving Plan) or from social security. | | |
|Transactions: |New Entrant Filers do|Preceding Calendar |
|For you, your spouse or dependent child, report any purchase, sale or exchange during the reporting |not report |Year |
|period of real property, stocks, bonds, commodity futures, mutual fund shares, and other securities | | |
|when the amount exceeds $1,000. | | |
| | | |
|Remember to also report accrued income above $200 (in the Assets section) even if reporting the asset| | |
|value as none because of a sale or exchange transaction in the covered report period. | | |
| | | |
|Don't report transactions on a personal residence (unless rented out); (2) cash accounts, such as | | |
|money market, checking or savings accounts or money market mutual funds; (3) U.S. Treasury bills, | | |
|notes and bonds; (4) Qualified Blind, Qualified Diversified or Excepted trusts. Also, don't include | | |
|transactions that occurred: (1) before your Federal Government employment; (2) solely by and between | | |
|you, your spouse or dependent child. | | |
| | | |
|Report all assets that were bought, sold or exchanged (including losses) during 2008 if the amount | | |
|was more than $1,000 | | |
| | | |
|Dual Reporting - if the sale of an asset generated more than $200 in income during the reporting | | |
|period, report the asset income as well as the transaction (sale). | | |
|Gifts and Travel Reimbursements: |Not applicable for |Preceding Calendar |
|The gift reporting threshold is now $335. All gifts received during the reporting period from one |New Entrants & SGEs |Year |
|source which are valued over $135 must be aggregated to determine whether you have reportable items. | | |
| | | |
| | | |
|For you, your spouse and dependent children, report gifts, in-kind travel expenses and travel related| | |
|reimbursements aggregating to more than $335 (if reporting gifts received before 1 January 2008 use | | |
|$305 instead of $335) from any one source other than the U.S. Government. The term gift means any | | |
|payment, forbearance, advance, rendering or deposit of money, or anything of value, unless | | |
|consideration of equal or greater value is received by the donor. Include any tangible items, food, | | |
|lodging, transportation or entertainment and travel related reimbursements. | | |
| | | |
|Exclude: anything having a value of $134 (if reporting gifts received before 1 January 2008 use $122 | | |
|instead of $134) or less; anything received from relatives; bequests and other forms of inheritance; | | |
|gifts of hospitality on the donor's personal or family premises; anything received during periods of | | |
|non-federal employment; anything given to a spouse or dependent child totally independent of the | | |
|relationship to you. | | |
| | | |
|Gifts to the spouse. As a general rule, gifts to the retiring employee's spouse must be reported on | | |
|the SF 278 just as if they were gifts to the retiring employee. The exception is that it is not | | |
|necessary to report "gifts...received by a spouse...which are...received totally independent of their| | |
|relationship to the filer." 5 C.F.R. § 2634.309(a)(2). | | |
| | | |
|Retirement/Farewell Mementos. It is not necessary to report on the SF 278 "suitable mementos of a | | |
|function honoring the reporting individual." 5 C.F.R. § 2634.105(h)(2). Therefore, it is not | | |
|necessary to report on the SF 278 any suitable mementos of the individual's retirement ceremony or | | |
|retirement lunch or dinner. | | |
| | | |
|Gifts of Travel. Do not report donations of travel benefits accepted by DoD under statutory | | |
|authority such as 31 U.S.C. § 1353. Filers must disclose travel expenses paid by a prospective | | |
|employer for job interviews. | | |
|Liabilities: |Preceding 12 months |Preceding Calendar |
|For you, your spouse or dependent children, report any liability over $10,000 owed to any one | |Year |
|creditor at any time during the reporting period. | | |
| | | |
|Do not report: the mortgage on your personal residence unless it is rented out; loans secured by | | |
|automobiles, household furniture or appliances; obligations arising from a divorce or permanent | | |
|separation; and liabilities owed to certain relatives. See FDM Common Questions for information on | | |
|revolving charge accounts and liabilities owed to certain relatives. | | |
|Agreements or Arrangements: |Preceding 12 months |Preceding Calendar |
|For yourself only, report any agreements or arrangements for (1) future employment; (2) a leave of |and Year filed to |Year and Year filed |
|absence during your period of Government Service; (3) continuation of payment by a former employer |date of filing |to date of filing |
|(including severance payments) other than from the U.S. Government; and, (4) continuing participation| | |
|in an employee benefit or welfare plan maintained by a former employer other than U.S. Government | | |
|retirement benefits. No report is required regarding any agreement or arrangement entered into by a | | |
|spouse or dependent child. | | |
| | | |
|For example, list any 401k/457/403b/retirement/pension with a previous employer. | | |
| | | |
|Filers who negotiated a job in the private sector must indicate that they have an agreement or | | |
|arrangement with a private sector employer. | | |
| | | |
|Do not report: dollar amounts for agreements or arrangements or any agreements or arrangements | | |
|entered by a spouse or dependent child. | | |
|Positions (Held outside the US Government): |Preceding 12 months |Preceding Calendar |
|Positions held during the applicable reporting period, whether compensated or not. Positions include |and Year filed to |Year and Year filed |
|but are not limited to those of an officer, director, trustee, general partner, proprietor, |date of filing |to date of filing |
|representative, employee, or consultant of any corporation, firm, partnership, or other business | | |
|enterprise or any non-profit organization or educational institution. | | |
| | | |
|Do not report: mere membership in an organization, positions with religious, social, fraternal, or | | |
|political entities and those solely of an honorary nature or positions your spouse or dependent | | |
|child(ren) hold. | | |
Helpful Hints
Consult __________, your Ethics Official, if you have questions, need assistance, or an extension.
Timely filing by the due date (or extended due date) avoids a $200 late filing fee.
Please request an extension if you cannot file by the due date (Incumbent reports: 15 May; New Entrant report: 30 days after starting the position).
• Do not list account, personal address, or social security numbers since your SF 278 is available for public inspection (5 C.F.R. § 2634.603).
Name assets and income sources completely (i.e., with enough detail for us to properly review your report for potential conflicts of interest). The name should specifically identify the reported item. Examples-Complete Entries:
Crestar Bank, Arlington, VA (checking/savings)
Georgetown U. School of Medicine
Verizon Stock
Mississippi State Municipal Bond
Condo, Roanoke, VA (Rental property)
Vanguard High-Yield Fund (IRA)
Fidelity Index 500 Fund
• Report the underlying assets in IRAs, 401(k), and similar accounts. For example, “Prudential IRA” is insufficient; the individual mutual fund, stocks, and/or bonds, etc., in these accounts must be reported separately. Do not list just the name of a brokerage account, cash management account, IRA, 401(k), or similar accounts.
• Report the assets contained in variable annuities.
• Remember to list all positions that you hold or held within the last year. If you list an outside paid position as a source of income you must generally also report it as a Position.
• Income Type. Check Excepted Investment Fund (EIF) for widely held investment funds (e.g., mutual funds) over which you have no actual or potential control over the financial interests held by the fund and the funds are either (1) widely diversified; or (2) publicly traded. If an asset qualifies as an EIF you do not report the underlying assets or category of income (i.e., dividend, interest, capital gain).
• Income Amount. You must report an income amount for any holding that you report. You must report income accrued during the reporting period, even if it was reinvested. If you accrued no income, check the “None (less than $201)” radio button.
Examples of reportable assets:
o Stocks/futures/options
o Bonds
o Mutual funds
o Tax shelters
o Pensions/annuities
o Trust holdings
o Investment life insurance
o Investment real estate
o Trades or businesses
o Partnership interests
o Collectibles held for investment
Examples of reportable income:
o Spouse’s earned income if more than $1000 and honoraria if more than $200
o Dividends
o Interest
o Capital gains
o Distributions from partnerships
o Rents Royalties
o Commissions
o Fees
o Retirement benefits
o Honorarium
Sample eMail Notice to SF 278 Filers Using FDM 278
Subj: FDM 278 Use: eFiling Your SF 278
You are registered as an SF 278, Public Financial Disclosure Report, Filer in FDM, .
Timely filing by the due date (or extended due date) avoids a $200 late filing fee.
Please request an extension if you cannot file by the due date (Incumbent reports: 15 May; New Entrant report: 30 days after starting the position).
You may login to FDM, , with your Common Access Card (CAC)/PIN or your AKO user name/password. (You may have to first visit AKO, , to reset it if you haven't in the last 150 days).
FDM is a secure program for electronic filing and review of SF 278s. It is similar to TurboTax for income taxes. Upon first login you will see a Contact Info screen that reflects what we pulled from AKO. Please complete the missing information, save and then go to the My Reports tab to add/create your [New Entrant] [Incumbent] report. A report wizard will present questions for you to answer and guide you through the report preparation.
You may appoint a Filer Assistant to draft your report for you. Do so on the My Info | My Assistants tab.
FYI: 278 Filer User Resources:
SF 278 Filer Quick Start: .
Short video, Filing an SF 278: (self-playing or use Playback controls at the bottom right)
Printable Quick Reference on filing an SF 278 that shows screen shots:
__________ is available to answer any questions you have about your SF 278.
Please contact __________ if you need an extension, have any questions, or need assistance.
FDM Help Desk: (732) 532-5566, DSN 992-5566. This office is staffed from 7:00 AM to 5:00 PM Eastern Time. Voice mail available other times.
Filer’s 401(k)
Definition: An arrangement in which an employee places pre-tax earnings, and sometimes matching employer contributions, into a tax deferred retirement account that the employer creates and maintains. The employer holds funds in trust until the employee reaches a specified age or leaves the company and rolls the account into another tax-deferred plan.
General rule: Report the assets in all 401(k) plans if those assets meet the reporting requirements (e.g., valued over $1,000 or earned income over $200 during the reporting period). For example, if Filer’s 401(k) plan contains stocks and mutual funds, report the stocks and the mutual funds.
Example: Filer has a 401(k) with O’Melveny & Myers LLP, Washington, DC, valued at $84,000, 2008 earnings $1,700 interest and dividends. In it Filer owns BlackRock Utilities and Telecommunications Fund (MDGUX) (value $40,000; 2008 dividends $500), General Electric Co. (GE) (value $10,000; no dividends, income), & Vanguard 500 Index (value $34,000; $1,200 dividends and capital gains).
In FDM, on the Assets tab, select Add Asset then on the “Assets – Add Assets” screen, report the O’Melveny & Myers LLP 401(k):
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Save.
FDM displays a warning to report underlying assets because the Filer selected “Retirement Plan or Account (e.g., 401(k))”
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Click OK to continue.
FDM displays an option to start a purchase transaction since this is the first time the asset is being reported:
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Click OK to start the purchase transaction for later editing.
FDM then displays the Underlying Asset screen:
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Click Continue to go to the Add Assets screen to report the first underlying asset, BlackRock Utilities and Telecommunications Fund, a mutual fund:
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Enter the information describing the item, then click Save to add the Add Underlying Asset, BlackRock Utilities and Telecommunications Fund (MDGUX). Notice in the lower right corner of the screen that “Underlying Asset” is indicated.
FDM returns the Filer to the Asset list screen:
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Here, Filer clicks on “Add Underlying Asset” in row 1 (above) to add a second underlying asset of the 401(k), General Electric Co. (GE). Filer enters the information, then clicks Save.
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As before, FDM will prompt for starting a purchase transaction if the Filer acquired this asset in 2008.
Similarly, FDM returns the Filer to the Asset list screen:
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Filer clicks on “Add Underlying Asset” in row 1 (above) to add a third underlying asset of the 401(k), Vanguard 500 Index Fund. Filer enters the information, then clicks Save.
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As before, FDM will prompt for starting a purchase transaction if the Filer acquired this asset in 2008.
Similarly, FDM returns the Filer to the Asset list screen now showing the 401(k) and all 3 underlying assets:
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Underlying assets are the portfolio holdings of 401(k)s, Individual Retirement Accounts, brokerage accounts, trusts, mutual, pension, or investment funds, estates, and any other entities with individual holdings. Full disclosure often requires going beyond the investment vehicle and also listing its underlying holdings, unless the investment vehicle qualifies as an Excepted Investment Fund (EIF). So, if the underlying holdings have other underlying holdings Filers need to repeat the process until the specific investments are reported or they are excepted investment funds (e.g., most mutual funds). FDM provides an Underlying Asset tool to assist Filers and Reviewers report such holdings together.
Report the 401(k) with O’Melveny & Myers LLP, Washington, DC, as an Agreement:
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401(k) Plan—Spouse’s
General rule: Filer reports the assets in all 401(k) plans that the spouse has if those assets meet the reporting requirements (e.g., over $1,000 or over $200 income). The FDM screens and reporting process are similar to those for the Filer except the Filer may identify the 401(k) as the spouse’s.
Note: A Filer need not report any information about:
(1) A spouse living separate and apart from the reporting individual with the intention of terminating the marriage or providing for permanent separation;
(2) A former spouse or a spouse from whom the reporting individual is permanently separated; or
(3) Any income or obligations of the reporting individual arising from dissolution of the reporting individual's marriage or permanent separation from a spouse.
529 Plans
Definition: An education savings account or plan operated by a state or educational institution designed to help families accrue funds for future college costs often locking in tuition rates. There are two types of plans – Prepaid Tuition Plans and Prepaid Savings Plans.
- Prepaid College Tuition Plan is an education savings account or plan operated by a state or educational institution designed to help families accrue funds for future college costs. Filer must disclose the name and sponsor of the plan (e.g. Maryland Prepaid College Trust).
- Prepaid College Savings Plan is an investment account in which an individual chooses among offered investment options, usually mutual funds. The participant relies on the growth of these funds to pay for education expenses in the future. Filer must disclose the name and sponsor of the plan (e.g., GIFT College Investing Plan (Arkansas)), the name of the portfolio (e.g., Vanguard Aggressive Growth Portfolio), and the reportable underlying assets in that portfolio.
General rule: Report 529 plans. Describing the asset as a “529 plan” is not adequate.
Report a prepaid tuition plan: Enter the full name and sponsor of the plan and describe it as a prepaid tuition plan. Example: Texas Guaranteed Tuition Fund (prepaid tuition plan)
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Click Save once the descriptive information is entered.
Report a college savings plan: Enter the full name and sponsor of the plan and the name of the portfolio or portfolios that you have under the plan. Most of these portfolios will hold a combination of money market funds and mutual funds. Each portfolio should be a separate entry on the SF 278.
Example: Filer is invested in the Maryland 529 Plan which has two distinct portfolios (or underlying assets): Short Term Bond Portfolio and 2021 Portfolio. Filer may list the Maryland 529 plan itself as the “parent” and then the two underlying assets (see 401(k) earlier for an example) or merely list each of the individual 529 items separately as shown below.
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Similarly, report the Maryland 529 2021 Portfolio Fund as shown below:
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Annuities
Definition: An annuity is a contract with a life insurance company, though sometimes marketed through banks and financial planners. The investor (annuitant) pays a premium to the insurance company in either a single payment or a series of payments. In return, the insurance company makes payments to the investor, beginning at some future time, such as retirement or at a specified age. Tax-deferred investment income accumulates in the annuity. The two basic types of annuities are a fixed annuity and a variable annuity [see definitions of fixed annuity and variable annuity].
Fixed annuities: These annuities offer a specified rate of return that the issuing company guarantees. Individual investors have no direct financial interest in how the insurance company invests the premiums. Investors do have an interest in the insurance company in that if it becomes insolvent, they can lose their money. Filer must disclose the name of the insurance company issuing the annuity and state that the asset is a fixed annuity (e.g., John Hancock – Fixed Annuity).
Variable annuities: These annuities offer investors a limited series of options in which they can invest, typically mutual funds. Investors choose how their money is invested and receive a return based on the performance of the investments they choose. Filer must disclose the name of the company issuing the annuity, the type of annuity (variable), and the reportable underlying assets in the annuity, if any.
Report a fixed annuity: report the name of the company issuing the annuity and describe it as a fixed annuity.
Example: John Hancock Life Insurance Co (fixed annuity)
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Report a variable annuity: report the name of the company issuing the annuity, the type of annuity (variable), and then reportable underlying assets in the annuity. A variable annuity may contain stocks and mutual funds. Report the stocks, mutual funds, and any other assets that are not exempt from disclosure.
Example: New York Life Insurance (variable annuity) holding Fidelity Advisor Biotechnology (FBTAX) and MFS Utilities Series (MMUFX).
This screen shows reporting the annuity itself:
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Click Save and then add the two underlying assets: Fidelity Advisor Biotechnology (FBTAX) and MFS Utilities Series (MMUFX).
Fidelity Advisor Biotechnology (FBTAX):
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MFS Utilities Series (MMUFX):
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Asset Management Account
Definition: An asset management account, offered by a brokerage house, bank, or savings and loan, combines a number of financial services, such as checking, money market, brokerage, and margin accounts, or a revolving line of credit. These accounts allow a person to receive one statement that covers all the financial holdings. Customers sometimes use these accounts to shift assets and income automatically or as needed. For example, a person might have excess funds in a checking account automatically transferred to a money market account. Several variants of this account exist, with brand names like Cash Management Account, Active Assets Account, and Financial Management Account. Such accounts are known by such proprietary names as the Cash Management Account (Merrill Lynch), Active Assets Account (Morgan Stanley Dean Witter), or Schwab One Account (Charles Schwab) (from ). Filer must disclose the reportable underlying assets in the account. FDM 278 users may use the Underlying Asset feature to first report the management account name and then list each reportable underlying asset in it.
General rule: Report the holdings in an asset management account if those assets meet the reporting requirements. This type of account may contain a variety of investment products, such as stocks, municipal bonds, mutual funds, and cash accounts. Report stocks, municipal bonds, mutual funds, and any other assets not exempt from disclosure. You are not required to report the name of the financial institution at which the account is located, but you may do so.
Example: Filer’s Merrill Lynch Cash Management Account has these assets: Vanguard 500 Index Fund and Lowe’s Companies Inc. (LOW)
In FDM, Assets, Add Asset enter “Merrill Lynch Cash Management Account” as the parent holding, then the underlying assets individually (similar to the (401(k) example earlier).
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Vanguard 500 Index Fund:
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Lowe’s Companies Inc. (LOW):
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The result in FDM:
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Defined Benefit Pension Plan
Definition: A pension plan in which an employer holds and invests pooled funds for participating employees together. The employer guarantees a fixed amount of benefits to employees after retirement.
General rule: Report defined benefit plans. To report a defined benefit plan, you must disclose in the Assets section and as an Agreement or Arrangement.
Example: Filer has a defined benefit plan from prior employment at General Electric, Fairfield, CT.
In FDM, in Assets, Add Asset enter name as “General Electric” type is Pension Plan. You must disclose on Agreements the terms of the defined benefit plan (e.g., payments begin when I reach 66).
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Click Save to save the information in FDM and return to the Assets list screen.
To report the terms as an Agreement or Arrangement, click the “Agreements” tab of the report progress bar to advance to that section.
Click Add Agreement and enter the information:
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Click Save to save the information and return to the Agreements list screen.
Defined Contribution Pension Plan
Definition: A pension plan by which an employer or its agent maintains a separate account for each participating employee. Benefits at retirement depend upon the amount contributed and the investment performance of the plan's assets, which are selected by the employee or an independent manager.
General rule: Report defined contribution plans. Disclose in the Assets section and as an Agreement or Arrangement.
Example: Filer has a defined contribution plan from prior employment at General Dynamics, Arlington, VA.
In FDM, in Assets, Add Asset enter name as “General Dynamics” type is Pension Plan, General Dynamics as employer name. You must disclose the terms of the defined benefit plan in the Agreements section.
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Click Save to return to the list screen.
To report the terms as an Agreement or Arrangement, click the “Agreements” tab of the report progress bar to advance to that section.
Click Add Agreement and enter the information:
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Click Save to save the information.
Non-Government Employment
Definition: employment with a non-executive branch employer.
General rule: report the name of your non-executive branch employer, whether a full-time or part-time employer. If you are a new executive branch employee, you will report your former, non-executive branch employer on your new entrant report. If you are a current executive branch employee, you may have part-time employment or you may be self-employed in your own business. Both types of employment must be reported. Remember to report your position (for example, employee, consultant, proprietor, general partner) in the Agreements section.
Example 1: Government employee Filer is coming into the agency having worked at Lockheed Martin Corp., a research and development (aerospace & defense industry) company, in the last 12 months will report that employment.
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Example 2: Current employee, a full-time government employee has her own business, Delta Star Solutions, where she works part-time.
In FDM, on the Non-Investment Income screen, click Add to open the “Add Other Earned or Non-Investment Income” screen shown below:
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Click Save to save the information.
In FDM, click on the “Positions” tab of the report progress bar to report the outside Position: Delta Star Solutions, San Antonio, TX, Video game development Owner/Proprietor
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Click Save to save the information.
Employer—Spouse’s
General rule: Report the name of your spouse’s non-executive branch employer, whether your spouse works full-time or part-time. If your spouse is self-employed, report that employment. If your spouse works for an executive branch agency you are not required to report that employment.
Example: spouse works at Northrop Grumman.
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Click Save to save the information. Note: do not indicate the actual salary for the spouse.
Do not report your spouse’s employment in Positions.
Exchange-traded Fund (ETF)
Definition: An investment vehicle that holds numerous companies under one umbrella unified by a particular investing theme, such as companies that comprise the Dow Jones Industrial Average. Like mutual funds, ETFs may be diversified or may concentrate on a particular sector. Unlike mutual funds, ETFs are traded like stocks on the major stock exchanges. Filer must disclose the full name of an ETF.
General rule: You must report an exchange-traded fund (ETF). To report a sector ETF, list the full name of the fund. Although you are not required to provide the ticker symbol, the ticker symbol is helpful to your ethics official in identifying the asset and may reduce the number of questions that your ethics official will have for you. Most ETFs qualify as excepted investment funds; therefore, you are usually not required to report the underlying assets that ETFs hold. The following are the most common ETF types: DIAMONDs (track the Dow Jones Industrial Average), iShares (ETFs marketed by Barclays Global Investors), QUBEs (track the Nasdaq-100 index), Spiders or SPDRs (track a variety of Standard & Poors’ indices), and VIPERs (ETFs marketed by Vanguard).
Example: Filer owns iShares S&P Global Telecommunications Sector Index Fund (IXP)
On the Assets screen, click Add Asset to open the Add Asset screen and report the holding:
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Click Save to save the information entered and return to the list asset screen.
Government-Sponsored Corporation—Stock
Definition: stock issued by government-sponsored corporations, e.g., Federal National Mortgage Association (Fannie Mae) and the Federal Home Loan Mortgage Corporation (Freddie Mac), Ginnie Mae (Government National Mortgage Association (GNMA)), Tennessee Valley Authority (TVA)
General rule: report stock that you own in government-sponsored corporations. Do not report bonds issued by government-sponsored corporations.
Example: Filer owns $10,000 worth of stock in Federal National Mortgage Association.
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Click Save to save the information entered and return to the list asset screen.
Honoraria
Definition: A payment of money or anything of value for an appearance, speech, or article, less any necessary travel expenses. Most federal employees may accept honoraria for activities that do not relate to their official duties (see exceptions at 5 CFR part 2636, subpart C).
General rule:
Report honoraria that you or your spouse receives. An honorarium is a payment for an appearance, a speech, or an article, less any necessary travel expenses. Report the source of each honorarium as Non-Investment Income. If the honorarium is received as compensation for an outside position, you must report the outside position. Reviewers will want to verify that filer followed the requirements for participating in an outside activity and consider whether the honorarium is compensation for teaching, speaking, or writing that relates to their official duties (with an exception for teaching certain courses).
Example: Filer receive a $1,500 honorarium from the University of Southern California Marshall School of Business for a presentation on May 15, 2008.
On the Other Income section of the report progress bar, click Add Other Income to open the “Add Other Earned or Non-Investment Income” screen:
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Click Save to save the information entered and return to the list asset screen.
Individual Retirement Account
Definition: Generally a bank, brokerage, or mutual fund account that a person designated as a tax-deferred retirement account. All IRAs are "self-directed" because investors choose where to invest their retirement funds. IRAs may hold cash accounts, stocks, mutual funds, and other securities.
General rule: report the assets in an individual retirement account (IRA) if those assets meet the reporting requirements (e.g., are valued at over $1,000 or earned over $200 income in the reporting period). For example, if the IRA contains stocks and mutual funds, report the stocks and the mutual funds.
Example: Filer has an IRA that has these two holdings: Alcoa, Inc. (AA) and Merck & Co. Inc. (MRK). Filer may report each stock separately (Asset name = Stock – Filer’s IRA) or report the IRA and its two underlying holdings. Screen shots for the IRA and underlying assets are shown below.
On the Asset list screen click “Add Asset” to open the “Add Asset” screen below
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Clicking “Save” produces a popup information screen in FDM:
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Click OK to continue. When entering an Asset for the very first time (or later when increasing its value category) FDM will present a popup asking about creating a purchase transaction:
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Click OK to start a Transaction for later editing or Cancel if no transaction needs to be reported.
In our example Filer clicks OK and enters the information for the first IRA holding, Alcoa, Inc. (AA):
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Then clicks Save, answers the popup about creating a transaction, and then on the Assets list screen finds the IRA-Filer listing and clicks Add Underlying Asset:
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That opens another “Add Asset” screen to report the Merck holding.
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Filer’s spouse has an IRA with these two holdings: iShares MSCI Japan Index Fund (EWJ) and Fidelity Select Defense & Aerospace Fund (FSDAX)
After clicking “Add Asset” on the Asset list screen, Filer enters this information about the spouse’s IRA holdings opting to report them individually instead of as underlying assets in the IRA as with Filer’s example above.
IRA-Spouse - iShares MSCI Japan Index Fund (EWJ)
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Here, Filer clicks Save and Add Another to open another Asset Add screen for the next holding, IRA- Spouse - Fidelity Select Defense & Aerospace Fund (FSDAX):
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Filer clicks Save to save the information and return to the Asset list screen showing all Filer’s reported assets.
Liabilities
Definition: indebtedness owed by the Filer during the period covered by the report.
General rule: report a liability if the amount owed to the person or entity was greater than $10,000 at any time during the reporting period. Always disclose a loan over $10,000 from an individual. Report the name of the individual and the city and state where the individual is located. Report a loan over $10,000 from a financial institution or business entity if the loan was granted on terms that are not made available to the general public. To report this type of liability, disclose the name of the financial institution or business entity and the city and state where it is located.
Report credit card debt/revolving charge accounts only if the outstanding liability exceeds $10,000 at the end of the reporting period.
Exceptions to the reporting of liabilities: Do not report the mortgage on your personal residence unless it is rented out; loans secured by automobiles, household furniture or appliances; obligations arising from a divorce or permanent separation; and liabilities owed to certain relatives. You do not have to report loans against your Thrift Savings Plan (TSP). You do not have to report a personal liability owed by you, your spouse or dependent child to you or your spouse or to the parent, brother, sister or child of you, your spouse or your dependent child.
If you have a mortgage on a house that you rent to someone report the mortgage as a liability. Also, you are required to report the income from the rental (in FDM 278, use the Other Income tab to report the rental income).
Example: Filers owes a personal loan ($15,000; 6% interest, initially incurred in Aug 2007) to Jeff Gardner, Boulder, CO
On the Liabilities tab, Filer clicked “Add Liability” to open the “Add Liability” screen:
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When finished Filer clicked Save to record the information.
Life Insurance
Definition: Cash value insurance is part insurance and part investment. Such policies require premiums during the life of the insured person in exchange for a sum of money to a beneficiary when the insured person dies. While part of these premiums pay for expenses and the insurance part of the policy, the remainder goes into a tax-deferred cash reserve which is invested and builds the policy's cash value. There are three general types of cash value policies:
|Universal |Life insurance in which the insured person can vary the premiums by paying them with some of the accumulated cash value |
| |under the policy; person normally receives a minimum guaranteed rate of return at money market rates. Filer must disclose|
| |the name of the insurance company and the type of insurance (universal). |
|Variable |Life insurance in which the insured person chooses investments from among several company options, such as stock, bond, |
| |or money market portfolios. Filer must disclose I the name of the insurance company, the type of insurance (variable), |
| |and all reportable underlying assets. |
|Whole |Life insurance in which the insured person pays fixed premiums and has no control over the investments, which is left to |
| |the insuring company. Filer must disclose the name of the insurance company and the type of insurance (whole). |
General rule: report cash value insurance policies—whole, universal, and variable. Do not report term life insurance. To report a whole or universal life insurance policy, report the name of the company issuing the policy and the type of policy. To report a variable life insurance policy, report the name of the company issuing the policy, the type of policy (variable), and the underlying assets in the policy.
Example: Filer has a whole life insurance policy with Mutual of Omaha. Current cash value $51,000.
On the Add Asset screen, Filer enters the information.
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Filer clicks Save to save the information.
Filer has a Home Life (variable life) insurance policy (underlying assets: Dreyfus Premier California AMT-Free Bond Fund (DRCAX) and Janus Global Life Sciences Fund (JAGLX)).
Filer starts with the Home Life policy:
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Save prompts Filer to report the transaction and then to ass Underlying assets.
Filer starts to record Dreyfus Premier California AMT-Free Bond Fund (DRCAX):
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Filer clicks Save, returns to the Asset List screen, scrolls down to the row with Home Life and clicks the “Add Underlying Asset” action button to report the Janus Global Life Sciences Fund (JAGLX):
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Save returns the Filer to the Asset list screen.
Limited Partnership (LP)
Definition: Entity formed when a group of individuals join together for the purpose of conducting or investing in a trade or business. It usually has one general partner who organizes and manages the operations and the partnership. The other investors are limited partners. Typically, LPs invest in real estate, hedge funds, oil and gas, and equipment for leasing. Filer must disclose the name of the partnership. If the LP is a private LP, filer must disclose additional information.
|Private Limited |An LP that has private investors and does not sell shares to the public. Filer must report the full name of the |
|Partnership |LP, the location (city and state) of the LP, and a brief description of its line of business or its purpose. If an|
| |investment LP does not meet the definition of an excepted investment fund, the underlying assets must be |
| |disclosed. |
|Public Limited |An LP that sells shares to the public. Filer must report the full name of the LP. Public LPs will usually meet the|
|Partnership |definition of an excepted investment fund. In the case of such an LP, filer is not required to disclose the |
| |reportable underlying assets. |
General rule: report your interest in a limited partnership (LP) that sells its shares to the public. Like private LPs, public LPs may be formed for the purpose of conducting or investing in a trade or business, such as equipment leasing or oil and gas exploration. To disclose your interest in this type of public LP, report the full name of the LP. Although you are not required to provide the ticker symbol, the ticker symbol is helpful to your ethics official in identifying the LP as being publicly traded and may reduce the number of questions that your ethics official will have for you.
Example: Kinder Morgan Energy Partners, LP (KMP)
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Save and report the private LP holdings similar to how reportable IRA underlying holdings are reported.
Managed Account
Definition: Also called a separately managed account/fund, a customized portfolio of stocks and/or bonds and cash that is guided by a professional investment manager. The manager buys and sells stock and/or bonds for [the] portfolio on [the investor’s] behalf. From the "Individual Investors" page of the Morgan Stanley web site. These accounts may have names that are similar to mutual funds, but they are not mutual funds. They also do not qualify as excepted investment funds.
General rule: report the assets in a separately managed account that meet the reporting requirements. If the separately managed account contains stocks, and mutual funds, report the stocks and the mutual funds. You are not required to indicate that the assets you list are held in a separately managed account or fund, but you may want to do so if you have several of these accounts. Including the name of the account or fund will help you keep the form organized.
Example: see Asset Management Account example earlier.
Real Estate
Definition: Typically includes residential property (e.g., homes, apartment buildings, hotels), commercial property (e.g., office buildings, business sites, shopping malls), and land held for agricultural use or mineral exploration (e.g., vacant lots are included if held for the production of income such as appreciation in value).
General rule: Report as an Asset real estate (residential, commercial, and undeveloped) from which you receive income over $200 in a reporting period. Do not report the home in which you reside unless you rent it and receive rental income. To report real estate, describe the type of property and the city and the state where it is located. If you have a mortgage on that property, read “Liabilities” to determine if you must report the mortgage.
Example: Filer owns a rental house in Denver, CO and received $12,000 rental income in 2008.
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Filer clicks Save to save the information reported.
Real Estate Investment Trust
Definition: Managed diversified portfolios of real estate and mortgages. REITs are usually publicly traded like mutual funds and qualify as excepted investment funds (EIF).
General rule: report the full name of the REIT. A publicly traded REIT will usually qualify as an excepted investment trust, and you will not be required to list the underlying assets in the REIT. Although you are not required to provide the ticker symbol, the ticker symbol is helpful to your ethics official in identifying the REIT as being publicly traded and may reduce the number of questions that your ethics official will have for you.
Example: Filer owns an interest in Washington Real Estate Investment Trust (WRE)
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Mutual Fund
Definition: A portfolio of stocks, bonds, futures, options, money market instruments, or other securities, that is created and managed as an investment company and registered with the Securities and Exchange Commission. The mutual fund sells shares to investors and pools their money to purchase its investments.
General rule: Report the full name of the fund, including the fund family name. Many mutual funds qualify as excepted investment funds; therefore, you are usually not required to report the underlying stocks that the funds hold. Although you are not required to provide the ticker symbol, the ticker symbol is helpful to your ethics official in identifying the asset and may reduce the number of questions that your ethics official will have for you.
Example: ING DIRECT Financial Services Fund (IDFOX)
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Stocks
Definition: Equity interest in a corporation. This type of interest is usually is available to the public and traded on an exchange. Reviewers can locate information about publicly traded stocks in the newspaper, on the internet, or in other financial services publications.
General rule: report the full name of the company. Filer may provide the ticker symbol. It helps ethics official in identifying the stock as publicly traded and may reduce the number of questions that your ethics official will have for you.
Example: McDonald’s Corporation (MCD)
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TIAA-CREF
Definition: The Teachers’ Insurance and Annuity Association—College Retirement Equities Fund (TIAA-CREF) is one of the largest private pension funds in the United States. In addition to operating a pension system for people employed in academic and research fields, it offers to the general public a variety of investment products, such as annuities and mutual funds.
General Rule: report your reportable investments in the Teachers’ Insurance and Annuity Association—College Retirement Equities Fund (TIAA-CREF). Describing your investment as “TIAA-CREF” is not sufficient. TIAA-CREF currently offers a variety of investment products, such as annuities and mutual funds. You must report the specific investment product.
Example: TIAA Traditional Fixed Annuity
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Trusts
Definition: A trust is a formal, legal arrangement by which legal title and management responsibility for a person's property is given to a fiduciary, known as the trustee. The person who creates the trust is known as the grantor, settlor or donor. The property put into the trust is called the corpus (the body, literally), trust res (the thing in trust, literally), trust fund, or trust estate. Those who are designated to receive income from or ultimately the corpus of the trust are known as beneficiaries. Generally, filers need to report holdings and income from any trust or estate in which they, their spouse or dependent children hold a vested beneficial interest in principal or income. Income received in the form of a distribution from a trust is required to be reported by the filer in actual amount if a filer does not have a beneficial interest and the trust holdings have not been individually reported. Distributions to spouses and dependent children are not required to be reported. Consult your Ethics Official for assistance in reporting trusts.
If the filer, spouse, or dependent child has a reportable vested beneficial interest in the principal or income of the trust, the filer must disclose the name of the trust and all reportable underlying assets. If the filer is a trustee and receives a fee over $200, filer must make a separate entry for her service as trustee to indicate that she received earned income for this work. Filer must always report a trustee position, whether it is compensated or uncompensated.
General rule: report each asset in a trust if you have a vested beneficial interest in the trust. Because the assets in a trust will probably fall into one of the categories of assets described in this guide, refer to the directions for that particular asset to learn how to report it.
Example: Stonecipher Family Trust underlying assets are listed below: stocks of Whole Foods Market Inc. (WFMI) & Intel Corp (INTC)
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Save opens the add underlying asset screen described earlier for reporting the first underlying asset.
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Save returns to the Asset list screen where Filer scrolls to the row with the Trust and clicks Add Underlying Asset to report stock in Intel Corp (INTC)
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Note: If you are a trustee, you must report the outside position (Position section). If the position is uncompensated, please indicate that. Otherwise, when your ethics official reviews the form and does not see the trustee service listed as Non-Investment Income, she will have to contact you to find out whether or not the position is compensated.
Financial Assets, Property Interests, and Income Disclosed on SF 278 Reports*
*Source: Adapted from OGE Course Materials, Certifying 450 Reports, Participant Guide, FY08
Notes:
1. FDM includes a Glossary defining many of these terms and FDM-specific terms.
2. This document serves as a quick reference guide only. As such, the “definitions” are abbreviated. Further, the financial disclosure regulation, 5 CFR part 2634, , serves as the ultimate authority for disclosure requirements.
|Term |Definition/Description |
|401(k) Plans |An arrangement in which an employee places pre-tax earnings into a tax-deferred retirement account that a private |
| |industry employer creates and maintains. Employer holds funds in trust until employee reaches a specified age or |
| |leaves employer. Plans are self-directed. Filer must disclose the plan’s reportable underlying assets (Assets |
| |section), and disclose the plan (Agreements section). |
|403(b) Plans |An arrangement in which an employee places pre-tax earnings into a tax-deferred retirement account that a state or |
| |local government employer or tax-exempt organizations (such as schools and charities) create and maintain. Plans |
| |generally offer limited choices of funds. Filer must disclose the plan’s reportable underlying assets (Assets |
| |section), and disclose the plan (Agreements section). |
|Annuities |Contract with a life insurance company. Investor pays a premium to an insurance company per the contract and the |
| |insurance company makes payments to the investor at a specified age. See also Deferred Annuities, Fixed Annuities, |
| |Immediate Annuities, and Variable Annuities. |
|Deferred Annuities |Postpones payments to investor until he/she reaches a certain age or retirement. Deferred annuities may be either |
| |fixed or variable. See also Annuities, Fixed Annuities, Immediate Annuities, and Variable Annuities. |
|Defined Benefit Plans |Type of pension interest. Employer makes a contribution to a pool that is held and invested for all participating |
| |employees. Employee will receive a fixed amount of benefits when he or she retires. Employee may know in advance |
| |the amount of his future benefits or, at a minimum, know the formula that determines the amount. Filer must disclose|
| |the name of the employer providing the plan and the type of pension interest (Assets section), e.g., defined benefit |
| |plan, and the plan’s terms (Agreements section). |
|Defined Contribution |Type of pension interest. 401(k) and 403(b) plans are examples of this type of interest. Employee makes |
|Plans |contributions to an employer who maintains a separate account for each employee. Either the employee or an |
| |independent manager chooses how the contributions will be invested. The benefits upon retirement depend on the |
| |performance of the plan’s assets. Filer must disclose the reportable underlying assets of the plan on (Assets |
| |section), and the plan (Agreements section). |
|Education Savings |An education savings plan operated by a state designed to help families set aside funds for future college costs. |
|Accounts (529 plans) |(Educational institutions may also offer 529 pre-paid tuition plans). Every state now has at least one 529 plan. |
| |529 plans are tax-deferred. There are two types of plans – Prepaid Tuition Plans and Prepaid Savings Plans. |
| |Contributors decide the state plan in which they want to invest. Once invested in the plan, the plan’s assets are |
| |professionally managed. Disclosure requirements vary according to the type of plan. See Prepaid Tuition Plans and |
| |Prepaid Savings Plans. |
|Excepted Investment |A pooled investment vehicle that is: 1) widely held (100 or more participants); 2) publicly traded (or available) or|
|Funds (EIF) |widely diversified (no more than 5% of the value of the portfolio is invested in one issuer [other than the U.S. |
| |government] and holds no more than 20% in any particular economic or geographic sector); and 3) independently |
| |managed. Investors do not exercise or have the ability to exercise control over interests held in the fund. The |
| |investment vehicle may be a mutual fund, regulated investment company, common trust fund maintained by a bank or |
| |similar financial institution, pension or deferred compensation plan, or any other investment fund. For investments |
| |that qualify as EIFs, the filer must identify the fund itself as an interest in property and/or a source of income. |
| |The filer does not have to disclose the fund’s underlying assets. Note: The definition of an EIF is used for |
| |financial disclosure purposes only. |
|Fixed Annuities |Income from an annuity at a specified rate of return guaranteed by the insurance company. The insured has no direct |
| |interest in how premiums are invested. Filer needs to disclose the name of the insurance company and specify that |
| |the asset is a fixed annuity (Assets section). See also Annuities, Deferred Annuities, Immediate Annuities, and |
| |Variable Annuities. |
|Funds Receivable |Filers, spouses or dependent children may be lenders for a loan or have other receivable accounts, such as |
| |compensation owed by former employers or money owed for goods and services. Filer must disclose notes and accounts |
| |receivable unless it is a loan to a close relative. In the Non-Investment Income section Filer must identify the |
| |borrower (helpful if it includes relationship to filer and reason for loan). Watch for loans between government |
| |employees – if the loan is to a superior, a low interest rate could be a gift to a superior. |
|Futures |An agreement to buy or sell a commodity or a financial interest at a stipulated price, quantity, and time. Filer |
| |must report the asset (Assets section) if it is valued over $1,000 or if the income exceeds $200 during reporting |
| |period (even if it is unrealized gain). |
|General Obligations |A type of municipal security. A debt obligation for general expenditures and backed by taxing and borrowing power. |
| |Filer must disclose general obligations (Assets section). See also Municipal Securities and Revenue Bonds. |
|Government Agency |Debt obligations issued by federal agencies and Government corporations and Government-sponsored corporations to help|
|Securities |finance operations such as GINNIE MAE, FANNIE MAE, FREDDIE MAC, SBA and TVA. See also Treasury Securities. |
|Hedge Funds |Funds that seek to profit in all kinds of markets by pursuing leveraging and other speculative investment that may |
| |increase the risk of investment loss. Filer must disclose the name of the hedge fund. Hedge funds may qualify as |
| |excepted investment funds. If so, the filer must identify the fund itself as an interest in property and/or a source|
| |of income and does not have to disclose the fund’s underlying assets. If the hedge fund does not qualify as an |
| |excepted investment fund, the filer must disclose the hedge funds' reportable underlying holdings. See Excepted |
| |Investment Funds and Reportable Underlying Assets. |
|Honoraria |Payment for an appearance, speech, or article. Most federal employees may accept honoraria for activities that do |
| |not relate to their official duties (see exceptions at 5 CFR part 2636, subpart C). Filer must report honoraria and |
| |their sources (Assets section). If the honorarium is received as compensation for an outside position, filer has to |
| |report the position (Outside Positions section). Reviewers may want to check if filers followed the requirements for|
| |participating in an outside activity and consider whether the honorarium is compensation for teaching, speaking, or |
| |writing that relates to their official duties (with an exception for teaching certain courses). |
|Immediate Annuities |Income from an annuity that pays out immediately. Immediate annuities may be either fixed or variable. The income |
| |may be interest or dividends. See also Annuities, Deferred Annuities, Fixed Annuities, and Variable Annuities |
|Individual Retirement |Generally a bank, brokerage, or mutual fund account that the employee designated as a tax-deferred retirement |
|Accounts (IRAs) |account. Reportable income is generated even though the income is reinvested. All IRAs are self-directed. Filer |
| |must disclose all reportable underlying assets on (Assets section). |
|Intellectual Property |Filer may hold investments in intellectual property and related rights (patents, copyright, computer software, etc.).|
| |Intellectual property may produce both earned income (compensation for services and paid when item is sold) and |
| |investment income (i.e., royalties). The intellectual property must be described by indicating the nature of the |
| |item and the contractual arrangements (Assets section). Income consists of advances, contract payments, royalties, |
| |etc. |
|Investment Clubs |Most investment clubs are set up as general partnerships. Each member or partner in the group owns a proportionate |
| |share of the assets in the club. The threshold for reporting the investment club itself is the overall amount that |
| |the filer invested in the club. The threshold for reporting the underlying assets of the club is based on the |
| |filer’s interest in each asset. If the filer’s interest in a particular underlying asset is not valued over $1,000 |
| |or if the filer’s share of income generated by that asset does not exceed $200, then the filer does not need to |
| |disclose that particular underlying asset. The filer must report the investment club and those underlying assets |
| |that meet the reporting thresholds (Assets section) (stocks, bonds, sector mutual funds, etc.). A position such as |
| |general partner should generally be reported (Positions). |
|Keogh Plans (HR-10 |Tax-deferred pension account for self-employed persons and employees of unincorporated businesses. These plans have |
|plans) |essentially the same financial disclosure and conflict of interest analysis as IRAs because employers have no |
| |continuing connection with the Keogh after their contributions have been made. Filer must disclose the reportable |
| |underlying assets (Assets section). |
|Life Insurance Policies |Policies issued in either term or cash value. Filer generally does not have to report term life insurance. However,|
| |filer must report cash value life insurance because it is part insurance and part investment. See also Universal |
| |Life Insurance, Variable Life Insurance, and Whole Life Insurance. |
|Limited Partnerships |Formed when a group of individuals join together for the purpose of investing in a trade or business. The other |
|(LP) |investors are limited partners. Usually has one general partner who organizes and manages the operations and the |
| |partnership. Individuals are offered reduced liability exposure, investment income, and tax advantages. LPs often |
| |invest in real estate, hedge funds, oil/gas, futures, equipment for leasing, or finance new product development, etc.|
| |Filer reports the name of the partnership (Assets section) and possibly the reportable underlying assets. Filer |
| |reports an outside position (Outside Positions section), if he is a general partner or if he receives fees for |
| |services performed for the LP. See also Public Limited Partnerships and Private Limited Partnerships. |
|Livestock and Farm |Filers may have interests in livestock or other farm interests either as owners, employees, or investors– disclosure |
|Interests |is the same for each. Filer must disclose his type of interest (limited partner, general partner, sole owner, |
| |corporate shareholder, etc.) (Assets section). If the asset is a farm, filer must also report the name under which |
| |the farm does business, the business of the farm (such as livestock) and the location of farm (city and state). |
| |Filers need to disclose their positions, such as general partner, sole owner of proprietorship, etc., if appropriate |
| |(Positions section). |
|Municipal Securities |Debt obligations of cities, counties, etc. Filer must report (Assets section). See also General Obligations and |
| |Revenue Bonds. |
|Mutual Funds |An entity which is registered as a management company under the Investment Company Act of 1940, as amended (15 U.S.C.|
| |80a-1 et seq.). Includes open-end and closed-end mutual funds and registered money market funds. Filer reports money|
| |market or mutual funds if over the $1,000 reporting threshold. |
|Non-Public Businesses |Filer must disclose (Assets section), the full name of the entity, the location (city and state), the nature of the |
| |business (such as full-service restaurant, computer software, retail store, candle-making business, etc.), and any |
| |portfolio investments or attributions that are not solely incidental to the business. Filer needs to disclose any |
| |position held with the business (Positions section). |
|Non-Public Stocks |Stocks not available to public. Usually issued directly to those who formed the company or provided capital to the |
| |company. Filer must provide a description of the nature of the company’s business and the location (city and state) |
| |of the business (Assets section). |
|Options |Grants investors the right but not the obligation to buy or sell a commodity or a financial interest at a stipulated |
| |price, quantity, and time on specified terms. Filer must report asset (Assets section) if it is valued over $1,000 |
| |or if income exceeds $200 during reporting period. |
|Personal Bank Accounts |Personal savings accounts, money market accounts, CDs, NOW accounts, and checking accounts. Cash deposit accounts |
| |held in financial institutions such as banks, credit unions, etc. |
|Precious Metals |Metals such as gold, silver, and platinum are held by some investors as a hedge against inflation or foreign exchange|
| |fluctuations. Investors may take physical possession of the metals, hold certificates issued by an investment |
| |entity, or hold shares of metals in metals mutual funds or futures. |
|Prepaid Savings Plans |A 529 plan where the plan’s growth is based on the performance of investments chosen by the filer. Filer must |
| |disclose the name of the plan, e.g., GIFT College Investing Plan (Arkansas) and the reportable assets in that |
| |portfolio if the list is not available from public sources such as the internet, e.g., Vanguard Aggressive Growth |
| |Portfolio. See Education Savings Accounts (529 plans) and Prepaid Tuition Plans. |
|Prepaid Tuition Plans |A 529 plan that allows a contributor to lock in today’s tuition rates. The plan represents a contract between the |
| |state and the contributor. Filer reports the name of the plan and the sponsor of the plan, e.g., Maryland Prepaid |
| |College Trust. See Education Savings Accounts (529 plans) and Prepaid Savings Plans. |
|Private Limited |For a private non-investment LP, the filer must disclose (Assets section) the name of the LP, location (city and |
|Partnerships (LP) |state), and a brief description of its purpose or operation. If the private LP is an investment LP, but does not |
| |qualify as an excepted investment fund, the reportable underlying assets must also be disclosed (Assets section). |
| |See Excepted Investment Fund, Limited Partnerships, and Public Limited Partnerships. |
|Public Limited |These are generally publicly traded and are usually excepted investment funds. Filer needs only report the full name|
|Partnerships (LP) |of the LP (Assets section). See also Excepted Investment Funds, Limited Partnerships and Private Limited |
| |Partnerships. |
|Publicly Traded Stocks |Stocks available to the public and traded on an exchange. Reviewers can locate information about publicly traded |
| |stocks in the newspaper, on the internet, or in other financial services documents. These must be disclosed (Assets |
| |section). |
|Real Estate |Typically includes residential property (homes, apartment buildings, hotels), commercial property (office buildings, |
| |business sites, shopping malls), and land held for agricultural use or mineral exploration (vacant lots are included |
| |if held for the production of income such as appreciation in value). Filer must report the name of the asset and the|
| |location (city and state) of the real estate (Assets section) except for personal residence unless it is rented out. |
|Real Estate Investment |Managed diversified portfolios of real estate and mortgages. Usually publicly traded like mutual funds and qualify |
|Trusts (REITs) |as excepted investment funds. Filer must disclose the name of the asset (Asset section). If the investment is not |
| |publicly traded, filer must disclose the reportable underlying assets when the REIT does not qualify as an excepted |
| |investment fund. See Excepted Investment Fund. |
|Revenue Bonds |A type of municipal security. A debt obligation used to finance specific public service projects and backed by cash |
| |flow from those projects. Filer must disclose revenue bonds (Assets section). See also Municipal Securities and |
| |General Obligations. |
|Salaries |Earned income that may be referred to as fees, commissions, salaries, or honoraria. Filer must report |
| |(Non-Investment Income section) earned income in excess of $200 that is acquired during the reporting period from any|
| |one source. However, filer does not report Federal salaries or Federal retirement benefits – common over-reporting |
| |examples, especially military retirement benefits. The threshold for spouse’s earned income is $1,000 (not $200 like|
| |the filer). Filer does not need to disclose any earned income of dependent children. Filer needs to report outside |
| |positions from which he/she receives earned income (Positions section). |
|Simplified Employee |Tax-deferred plan for small employers with 25 employees or fewer. Not a continuing obligation of employer once |
|Pensions (SEPs) |contributions are made. SEPs are self-directed, so the filer must disclose reportable underlying assets (Assets |
| |section). |
|Stocks |Equity interest (ownership) in a corporation – usually pays a portion of its earnings to shareholders as dividends. |
| |Shareholders may also receive capital gains when they sell their stock. Filer reports the full name of the asset |
| |(Assets section). In addition to the full name, the filer may also report the ticker symbol. See also Publicly |
| |Traded Stocks, Non-public Stocks, and Stock Options. |
|Stock Options |Rights to buy or sell stocks at specified quantities and prices within a certain time period. Some options are a |
| |form of employee benefits. These types of options are not purchased or sold over an exchange. They are granted by a|
| |company to its employees as part of an incentive and compensation plans. Filer reports stock options (Assets |
| |section)I. |
|Treasury Securities |A type of government security to include T-bills, treasury notes, treasury bonds, or U.S. savings bonds. See |
| |Government Agency Securities. |
|Trusts |A formal legal arrangement, under which assets are managed and controlled by one party (trustee) for the benefit of |
| |another (beneficiary). If the filer, spouse, or dependent child has a reportable vested beneficial interest in the |
| |principal or income of the trust, the filer must disclose (Assets section) the name of the trust and any reportable |
| |underlying assets. If the filer is a trustee and receives a fee over $200, the fee received for the trustee position|
| |must be reported (Assets section). The trustee position also must be reported on (Positions section) (compensated or|
| |not). |
|Universal Life Insurance|Insured person can vary premiums by paying them with some of the accumulated cash value of the policy, and she |
| |normally receives a minimum guaranteed rate of return at money market rates. Investor has no control over |
| |investments. Filer must report the name of the insurance company (Assets section) and specify that the asset is |
| |universal life insurance. See Life Insurance Policies, Variable Life Insurance, and Whole Life Insurance. |
|Variable Annuities |Annuities that offer investors options in which they can invest (usually mutual funds). Return is based on the |
| |performance of the chosen investments. Filer must disclose (Assets section) the name of the company and the |
| |reportable underlying assets. See also Annuities, Deferred Annuities, Fixed Annuities, and Immediate Annuities. |
|Variable Life Insurance |Insured person chooses investments from among several company options – performance of the chosen investments |
| |dictates its value. Filer must disclose (Assets section) the name of company, the type of insurance, and the |
| |reportable underlying assets. The policy itself is not an excepted investment fund, but the underlying assets may |
| |be. See Non-reportable Underlying Assets. See also Life Insurance Policies, Universal Life Insurance, and Whole |
| |Life Insurance. |
|Whole Life Insurance |Insured person pays fixed premiums and has no control over investments. Filer must report (Assets section) the name |
| |of the insurance company and indicate that the asset is whole life insurance. It is not an excepted investment fund |
| |as it represents an obligation by the sponsoring company and not an interest in an investment fund. See Life |
| |Insurance Policies, Universal Life Insurance, and Variable Life Insurance. |
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