Definition of Floating-rate contract:
Bank or insurance company issued pension plan which the owner purchases in a lump sum payment. Floating-rate contract principal amounts are guaranteed by the issuing bank or insurance company, and the payoff to the owner is provided with a variable interest rate. Payments from floating-rate contracts may be received in a lump sum upon retirement or through installment payments. Also called guaranteed investment contract.
Meaning of Floating-rate contract & Floating-rate contract Definition