Defined Contribution Clearance & Settlement (DCC&S) is an automated service that facilitates the processing of defined contribution mutual fund transactions including 401(k), 403(b) and other defined contribution retirement plans.  DCC&S leverages the existing technology infrastructure of three services:

• Fund/SERV®   is an automated centralized processing system that standardizes mutual fund order entry and account registration procedures, reducing the time and cost of processing transactions.
  
  
• Networking  details all non-Fund/SERV trade-related activity in customers’ accounts and allows all parties of a defined contribution transaction to share account level information.
  
  
• Mutual Fund Profile Service  provides accurate up-to-date details on funds’ individual securities, processing capabilities, projected and actual distribution declarations, daily prices and dividend rates.

Benefits
By utilizing DCC&S to standardize, centralize and automate the defined contribution clearance and settlement process, participants can:

• Increase Efficiency
  Improve efficiency and reduce operating costs by automating and standardizing order-flow procedures. Eliminate multiple links among firms as well as the labor-intensive and error-prone method of transmitting information via fax and phone.
      
• Centralize Money Settlement  
  Simplify the money settlement process and eliminate the risks associated with multiple settlement venues. A single net settlement figure is calculated for each participant every day.
  
  
• Expand Trading Partners
  Enabling record keepers and mutual fund companies to access DCC&S creates more opportunities to expand business among these parties.

Features
This sophisticated service builds off of proven legacy systems. Collectively used, these three systems provide participants with superior functionality. Features include:

• Clearing Hub, Dual-Party and Tri-Party Processing
  Third-party administrators, firms that act as both record keeper and trustee, as well as those who clear for record keepers can utilize DCC&S.

• Support for Non-1940 Act Retirement Products
  DCC&S supports Stable Value Funds, Guaranteed Investment Contracts, Bank Collective Investment Trusts and Separate Accounts.

• Access to NAV and Dividend Information
  The daily Net Asset Value (NAV) per share as well as the final audited prices and daily accrual rates are available via Mutual Fund Profile Service. Dividend information can be obtained from the Networking system. 

How DCC&S Works
Using a mainframe or Internet connection, participants can use DCC&S to take a defined contribution trade through all the necessary steps in a simple, automated manner. Participants can:

• Obtain price and dividend information
• Place orders
• Send and receive confirmations
• Settle money 
• Access position information

Who Can Use DCC&S
Mutual fund companies and other product issuers, distributors including broker/dealers, independent broker/dealers, banks and trust companies, plan trustees or custodians, third-party administrators, insurance carriers and other financial intermediaries can use DCC&S. Participants must become members of National Securities Clearing Corporation in order to utilize the service.