Designing a Customized Benefit Plan

The design features of an executive benefit plan can help drive bottom line performance and retention. Each person is different, and each person has a different idea as to what is important to them. A Senior VP who is in his fifties may think retirement is more critical than a 30-year-old, while the 30-year-old believes… Read more »

The Many Benefits of Corporate and Bank Owned Life Insurance (COLI / BOLI)

Companies use Corporate and Bank Owned Life Insurance (COLI / BOLI) to help fund their employee benefit plans, increase earnings and shareholder value as well as recruit, reward and retain key officers and directors. Tell us something we do not already know, such as its uses in: Succession Planning Supporting the Employee’s Family and Community… Read more »

The Importance of Communication in Succession Planning

Lindsey M. Bessy, ALMI, CLTC, MBA, CLU, CASL- Financial Advisor We recently talked with a client who was facing a more common problem with succession planning than one may think. The Situation: The current President of the Bank was 5-10 years out from retirement. The board had discussions on the next generation of leadership and… Read more »

Putting the Freeze on Fees

Martha Petitjean – Executive Benefits Coordinator Executive Benefits Network provides fee-free access to client’s financial information, including illustrations and annual reports. This is not the case with most companies. As illustrated by Peter Katt & Company’s article, Quagmire of Life Insurance Policy Service*, access to information about financial products is not common in the industry…. Read more »

BOLI / COLI Case Study: Supports the Bank and its Community

Background: The bank initially purchased BOLI on a few of its executives and directors to informally finance the cost of deferred compensation plans. Later, the bank decided to purchase additional BOLI (on a Guarantee Issued basis) on all of its existing officers where the bank was the owner and sole beneficiary without establishing new or… Read more »

Split-Dollar Plans and Net Amount at Risk Considerations

Andrew Bainbridge- Client Service Specialist Employer owned split-dollar life insurance is a method of sharing both the obligations and benefits of life insurance with an employee while also providing an incentive for retention of key-employees. For the purposes of this article, assume the employer is the owner of the policy and is providing an interest… Read more »

Are Nonqualified Defined Benefit Plans (SERPs) Still Relevant?

Dylan Habeeb – Presentation and Case Design Specialist The current problem facing Defined Benefit Plans (both Qualified and Nonqualified) in the corporate market: It is estimated that 93% of Qualified Defined Benefit Plans are underfunded. Companies are getting rid of and amending Qualified Defined Benefit Plans due to the low interest rate environment and having… Read more »

Using an Association Endorsed Vendor – Is it in the Best Interest of the Bank?

Endorsed vendor status is used to position some firms to the front of the line with banks looking to purchase products or services. Is this in the best interest of the bank? Most banking associations have an endorsed vendor program. This entails a process of review by the association board and a selection process, which… Read more »

E-Filing Now Available for Top Hat Plan Statements

On September 30, 2014, the Department of Labor’s Employee Benefits Security Administration (DOL/EBSA) published a proposed regulation that would require electronic filing of “top hat” plan statements. A top hat plan is a nonqualified plan that is unfunded, covers a select group of management and/or highly compensated employees and allows the participant to defer income… Read more »