At CAL, speaking strictly to the B-Fund.....It is managed by Charles Schwab (as is the 401K). Company paid funds are deposited monthly (at the Mid-Month Paycheck) into your B-Fund account. Think of it as 'matching' so to speak on the ground that the company will take the monthly pay-period and contribute 12.75% of your monthly pay (for that period) into your Charles Schwab B-Fund account.

IE: For the August 2010 pay period your made $10K. The company will contribute $1,275 (12.75% of $10K) to your B-Fund Account at Schwab on the mid-month pay check of the following month (aka - September 16th pay date).

This account (B-Fund) is completely separate from your 401K.....and the B-Fund contributions that the company makes does not play/count towards the $16.5K annual (under age 55)/ceiling limit that are imposed by the 401k account.

As stated above, the 401K and B-Fund are NOT company held like an A-Fund.....so there is some semblance of security in having these fund 'free-standing' out of the companies control so to speak.

Clear as mud??