[9829]
April 8, 1998
TO: BANK AND TRUST ADVISORY COMMITTEE No. 4-98
BROKER/DEALER ADVISORY COMMITTEE No. 6-98
OPERATIONS MEMBERS No. 10-98
TRANSFER AGENT ADVISORY COMMITTEE No. 22-98
RE: DEFINED CONTRIBUTION PROCESSING GUIDELINES
______________________________________________________________________________
Enclosed please find the Defined Contribution Processing Guidelines document which was
developed by the Defined Contribution User Group (“DCUG”) and the Bank and Trust Advisory
Committee (“BTAC”) to facilitate the use of NSCCGs new Defined Contribution Clearance & Settlement
Service. The document provides detailed guidelines for utilizing NSCCGs defined contribution interface
to process mutual fund capital share transactions in defined contribution plans. The guidelines address
the operational issues facing all the parties potentially involved in a transaction including bank trust
companies, third party administrators (“TPAs”), clearing agents, broker-dealers and mutual fund
companies. The preferred processing methods outlined in the document are not NSCC requirements but
rather, are recommended best practices developed and approved by the DCUG and the BTAC which we
anticipate will become the industry standard. The guidelines will be periodically updated to reflect
business and technical developments.
The ICI and the NSCC would like to acknowledge the following persons who contributed to the
development of the Defined Contribution Processing Guidelines document:
Jeff Becker, SunGard Shareholder Systems
Gary Collins, Daily Access
Russell Curtis, Putnam
Paul Gaydor, State Street
Jim Green, Fidelity
Kathy Hill, Vanguard
Ernie Linane, Edgewood Services
Rob McCabe, DST Systems
Linda Messore, First Data Corporation
Scott Morrison, Putnam
Betsey Orlowski, Putnam
Nino Palermo, American Funds Service Company
Pam Pierce, DST
Dana Rubin
Scott Seibel, NSCC
Stephen Slusarczyk, Vanguard
David Warsoff, Goldman Sachs Funds
Questions or comments about the enclosed Defined Contribution Processing Guidelines
document can be directed to Diane Butler of the ICI at 202/326-5847, to NSCCGs Mutual Fund Hotline
at 212/412-8893 or to any of the above named individuals. Additional copies of the document can be
obtained from the NSCC or the ICI. The document is also available via the internet to authorized users
of the NSCCGs mutual fund website which is fundserv.nscc.com.
Frank Litwin Diane Butler
Chairman - Bank & Trust Advisory Committee Director - Operations & Fund Custody
Enclosure