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Retirement Plans and Executive Benefits

The higher compensated executives are not always fairly treated as it relates to employee Benefits.

Non-Qualified plans can be designed to assist executives accumulate and preserve wealth. These plans are often tools to effectively attract, retain, and reward key executives. These types of plans can help prevent the reverse discrimination as it relates to the highly compensated executives brought on by the traditional broader-based employee benefit programs.

We can help design an Executive Benefits plan that satisfies the needs of the company and executive. We will consult on the following:

  • Establishing objectives and identifying design flaws
  • Initial design
  • Financing and security alternatives
  • Plan modifications and finalize plan design
  • Select financing vehicles
  • Develop the plan and implement the strategy
  • Design and implement executive plan administration

Deferred Compensation Plans
Help key executives diversify, reduce current income taxes, and achieve tax-deferred growth. These plans can also address executive concerns regarding any change in corporate control, ownership and corporate insolvency.

Supplemental Retirement Plans
Provide executives with alternative retirement vehicles which are not subject to government-imposed limits on traditional qualified retirement plans. These types of plans will help maintain executive retirement benefits to the same percentage of pay realized by other employees.

Executive Life Insurance Plans
These types of plans generally provide benefits to executives that are typically lower in cost, but provide more comprehensive benefits compared to the traditional group plans. These plans can provide special opportunities for tax-deferred cash accumulation, portability and corporate recovery of plan costs.

Executive Disability Plans
These plans provide financial security for executives and their families if their career is cut short by a disabling injury or illness. These plans supplement long-term group disability plans, providing executives with higher benefit limits, expanded features, and contractual guarantees. Additionally, these plans have the ability to continue funding retirement benefits that are curtailed upon disability.

Executive Long-Term Care Insurance
Provides non-discriminatory benefits to key executives. Employer premium payments are fully tax-deductible. Plans can be designed with the goal of being fully paid up by normal retirement age, thus reducing the need for additional premium payments during the executives retirement years.

Alternative Life Insurance Plans
Institutionally priced life insurance plans are designed to finance corporate executive benefit liabilities (COLI), bank executive benefit liabilities (BOLI), VEBA Trust liabilities (TOLI), or Insurance Company executive benefit liabilities (IOLI).

Buy-Sell Agreement with Life Insurance
When using life insurance with a buy-sell agreement, either the company or the individual co-owners buy life insurance policies on the lives of each co-owner (but not on themselves). If you were to die, the policy owners (the company or co-owners) receive the death benefits from the policies on your life. That money is paid to your surviving family members as payment for your interest in the business. If all goes well, your family gets a sum of cash they can use to help sustain them after your death, and the company has ensured its continuity.