Mid Atlantic Trust – Capital Preservation Program Overview

All individual retirement accounts established at the direction of a plan sponsor or as a result of plan termination (via QTA or voluntary sponsor direction), or as consequence to stale-dating uncashed checks, will be invested in Mid Atlantic Trust Company’s (“MATC”) multi-bank deposit program (the “Capital Preservation Program” or “Program”), designed to preserve capital and provide the account holder with FDIC coverage up to $250,000 per account owner, subject to FDIC guidelines as disclosed below*.  

The Program is managed by MATC and consists of a network of participating banks selected by MATC based on credit rating, capacity, return, and other factors. Program deposits are allocated across the banks in the network (“Program Banks”). The gross Program yield is the weighted average of the yields of the Program Banks. The yield credited to account owners (‘Crediting Rate”) will be the FDIC National Deposit Rate (“FDIC Rate”) for money markets as published by FDIC at National Rates and Rate Caps | FDIC.gov. The FDIC rate is published monthly on the third Monday of the month. MATC will set the Crediting Rate for the month to the prior month’s FDIC Rate.  

MATC will retain an administration fee of 250 basis points for management of the Program which includes, but is not limited to, selection and oversight of Program Banks and daily operation of the Program. This fee will be deducted from the Program yield before interest is credited to the account holder each month in the amount of the Crediting Rate. In the event the Program yield does not exceed the sum of the Crediting Rate plus 250 basis points, MATC will issue fee waivers to reduce its administrative fee below 250 basis points to ensure accounts are credited at the FDIC Rate.  MATC may also retain as compensation for its services a variable fee which is the excess yield paid to MATC by Program banks above the sum of the Crediting Rate plus 250 basis points as a risk premium for management of the program.  

*The FDIC’s insurance coverage for all insurable capacities (e.g. individual, joint, IRA, etc.) is $250,000 per depositor, per ownership category, per Program bank. The compensation of Program Banks can change periodically, and the proportion of your account balance held by each Program Bank could change monthly as allocations across the Program are rebalanced. As such, the amount of FDIC coverage applicable to your account balance in the Program can vary monthly. This is a simplified summary of FDIC insurance intended for informational purposes only. It is not a comprehensive explanation of FDIC rules for calculating insurance coverage. For more detailed information about your specific situation, we encourage you to use the Electronic Deposit Insurance Estimator (EDIE), available at FDIC.gov. You can also visit the FDIC: Information and Support Center – Home to submit a request for deposit insurance coverage information or call 1-877-ASK-FDIC (1-877-275-3342) to ask any other specific deposit insurance questions.