Recruit, Reward, And Retain Your Top Talent
From design and funding to implementation and ongoing oversight, MBS Financial is with you every step of the way.
Nonqualified deferred compensation (NQDC) programs allow executives to defer compensation on a pre-tax basis until a predetermined date or event, such as termination or retirement. These plans are designed for key employees to help you recruit, retain, and motivate top talent. While they are complex, when you have experience on your side, they can offer important advantages.
As independent consultants, the MBS team is here to make sure you implement the right kind of programs with the right partners for your company’s needs. We bring decades of work in executive benefits, deep insights, and robust industry relationships to help you make informed decisions and ensure your program will serve your executives and your organization for years to come.
A Dedicated, Experienced Nonqualified Plan Partner
Put insights, expertise, and objectivity to work for your team. From the early stages of program design to the details of funding and implementation, you can count on our experience to guide you. We’ll help you choose the right providers, find innovative solutions, and educate your participants so they can take full advantage of what you have to offer.
Nonqualified Executive Benefits Are Our Focus
We have worked in the industry for decades and are wholly focused on these solutions. We know the ins, the outs, and every aspect of what’s possible.
Independent And Unbiased
Our objectivity can help you make the best decisions for your business. We identify provider options and help you assess them based wholly on your needs.
Innovative And Results-Oriented
With deep experience comes fresh ideas and new approaches. We have a reputation for creative problem-solving and accountability for program performance over time.
Long-Term Client Relationships
Our average client tenure speaks volumes about our commitment to ongoing support and continuous improvement. We’re with you through every step and beyond.
Legislative Leadership
We take an active role in advancing the industry through legislative and regulatory advocacy, as well as serving as a founding member of Finseca.
NQDCP Expertise By The Numbers
7,552
participants
20
years average client relationship
$4.8B
AUM
143
plans
Addressing
The Retirement
Income Gap
For highly compensated individuals, there is often a gap between retirement savings and the amount they need to live comfortably. Much of this gap is due to limits on qualified plan contributions in 401(k) plans. Deferred compensation is a solution to fill this gap.
- Better manage tax liabilities with income taxed upon withdrawal.
- Gain the flexibility to save more than traditional retirement accounts.
- Distributions not subject to excise taxes prior to 59 ½.
- Increase financial stability during retirement.
Expertise At Every Stage
Helping you navigate every aspect of nonqualified deferred compensation plans.
Plan Review And Audit
A comprehensive plan review can help you make sure your nonqualified plans are meeting the needs of your company and your participants. We assess competitive features, cost, compliance, and participant flexibility.
Plan Design
Every plan is unique. We help you establish your objectives and design a plan to meet those goals. From allowing deferral of multiple sources of income to assisting with income tax reduction, your plan will reflect your realities.
Peer Benchmarking
We help you identify your peers’ plan provisions to help you understand how your plan stacks up so you can maintain competitiveness.
Recordkeeper Search
We find the best vendor based on your objectives. We develop a custom RFP or RFI and identify providers to invite into the process. We manage all interactions, analyze responses, facilitate finalist presentations, and act as plan sponsor proxy during implementation.
Funding Analysis
To hedge your emerging NQDC benefit liabilities, we provide the financial analysis to evaluate the tax, cash flow, accounting, liquidity, risk and cost impacts of various funding strategies such as mutual funds, corporate-owned life insurance (COLI), and others.
Participant Engagement
Our team will work directly with your participants to educate them about their NQDC opportunity and the advantages it can offer. We’ll review the options available to them in the plan and answer any questions about how it works.
Informal Funding Options
As part of the funding analysis, we help you evaluate a variety of different funding strategies. By informally funding your benefit liabilities, you can hedge against P&L volatility, improve benefit security, and generate income to cover expenses and pay plan benefits. We have experience across a variety of funding strategies:
Mutual Funds
Offer a universe of investment options to hedge assets to liabilities and easy administration, although with tax implications.
ETFs
A cost-effective approach, although may have asset to liability mismatches due to participant investment option variation and tax implications.
Corporate Owned Life Insurance (COLI)
This low-cost, tax-efficient funding strategy can be correlated to mirror your participant investment options. Understand COLI.
Company Stock
Often used when employer stock is one of the plan investment options. Can include phantom stock.
Swap Hedges
Does not require funding capital and allows above-the-line accounting but does not offer a dedicated source of funds for benefit payments. Also generates taxable income.