COVID-19 Relief Bill Corrects Statutory Interest Rates for New Life Insurance Policies Consolidated Appropriations Act, 2021 included an update to Internal Revenue Code Section 7702 (definition of life insurance for tax purposes) interest rates…
BOLI Market Update – 3rd Quarter 2020
Into the twelfth year of historically low-interest rates, and with the Federal Reserve announcing rates will not move until 2023, several headwinds continue to put a damper on bank earnings. While rates remain too low to generate meaningful return…
NDCP | Best Ways to Pay for College
Are Nonqualified Deferred Compensation Plans the Best Way to Pay for College? In the Winter 2020 edition of Defined Contribution Insights (available here) Plan Sponsor Council of America (PSCA) published the first of a two-part…
Supplemental Employee Term Life Insurance
Today’s economic environment and health concerns have many thinking differently about their financial plans. Life insurance has taken on a renewed prominence at the forefront of American’s lives, while providers have been innovating…
Risks when Bundling Qualified and Nonqualified Plan Recordkeeping
A $55 million settlement after 13 years in litigation in the case of Tussey vs. ABB, illustrates the dangers of bundling qualified and non-qualified plans with the same recordkeeper. In an effort to maximize cost efficiency,…
Use Deferred Compensation Plans in Place of Salary Reductions
The COVID-19 pandemic has had profound impacts on the day to day business of most American companies. Shelter in place orders and social distancing recommendations, while necessary, also mean that customers are less frequent…
Deferral Contribution Planning
Consider the Impact of COVID-19 on Higher 401(k) Refunds The economic impact of the COVID-19 pandemic has likely reduced 401(k) contributions this year. And as a result, the ERISA required nondiscrimination testing that occurs…
Financial Security in Retirement, Requires Rethinking Needs
Peter Mullin cautions that “it is a risky strategy to plan for necessary retirement finances only up to an ‘average’ life expectancy” in his article on the Milken Institute’s website – Center for the Future of Aging.
Should you have a Fixed Crediting Rate option in your Deferred Compensation Plan?
With interest rates at historically low levels, and the Federal Reserve recently indicating rates will remain at these levels through 2024 in their September policy statement, plan sponsors have begun to question what effect this may have…
2020 MBS Nonqualified Deferred Compensation Plan Recordkeeper Survey
Key findings from the 5th edition of the MBS Recordkeeper Survey of the Deferred Compensation Plan Market are included below. The 13 largest recordkeepers in the nonqualified plan arena, representing approximately 85% of all nonqualified…