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…
BOLI Market Update – 2Q 2020
Low Interest Rate Environment Driving BOLI Sales Entering the twelfth year of historically low interest rates, and with the Federal Reserve indicating rates will stay low for at least the next two years, BOLI has been a popular alternative…
Why BOLI
Bank-Owned Life Insurance How do sophisticated financial institutions finance the cost of their employee benefits while boosting the earnings on their investment portfolio and creating an immediate rise in earnings per share?
Understanding Corporate Owned Life Insurance (COLI)
EXECUTIVE SUMMARY Many companies offer valued executives non-qualified benefits programs such as deferred compensation. While these programs are not eligible for funding through secured qualified plans, companies can…
Corporate Owned Life Insurance (COLI) – Overview
WHAT IS COLI? COLI is a funding strategy that has been broadly utilized by public and private companies, financial institutions, banks and insurance companies as a means of financing executive benefit obligations. COLI offers death benefit…