Deferred Compensation News and Updates

Deferred Compensation News brings you the latest information and insights on 409A nonqualified deferred compensation; institutional COLI, BOLI, and ICOLI; tax-and cost-efficient non-COLI funding strategies; low-cost tax managed non-COLI asset/liability designs; executive benefits benchmarking; succession planning and timely issues of executive pay and benefits. 
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December 09, 2015

Deferred Compensation: A Fresh Perspective

Fulcrum Partners News

A Fresh Perspective on Deferred Compensation Forbes Magazine contributor, Steve Parrish, took an interesting look at the benefits of deferred compensation in an article titled, “Delaying Today’s Compensation Could Pay Off In The Future.” Parrish  explained, in simple terms, what distinguishes qualified plans from nonqualified plans. He pointed out that many workers may not be familiar with either concept and that those who are aware of nonqualified deferred compensation plans, may incorrectly believe such plans to be relevant to only earners at the highest levels. As the article’s author identifies, the idea behind delayed compensation is hardly new: “Nonqualified deferred compensation (NQDC) plans have been around since the legendary boxer Sugar Ray Robinson signed a deal with the International Boxing Club of New York in 1957. And yet this popular compensation planning tool is still misunderstood.” See the December 7, 2015 edition of Forbes/Entrepreneurs for Steve Parrish’s complete article, including  case studies on these four earning scenarios: A professional-level employee supplements his retirement income A key employee wants ‘a piece of the company pie’ ‘Tier Two’ employees get their own incentive plan A tax-efficient succession plan for father and daughter  
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November 26, 2015

Fulcrum Partners Wishes You a Happy Thanksgiving

Fulcrum Partners News

Wishing you and your family a Happy Thanksgiving from the Managing Directors at Fulcrum Partners LLC. Steve Broadbent, Andy Hart, Tom Chisholm, Chris Nyland, David Fisher, Kristine Kopsiaftis, Roy Imai, Gus Comiskey, Stephen Kaufman, Phil Currie, Scott Cahill, Bruce Brownell, Joe Thompson, and Craig Cayford.    
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October 23, 2015

IRS Announces 2016 Pension Plan Limitations

Fulcrum Partners News

IRS Announces 2016 Pension Plan Limitations; 401(k) Contribution Limit Remains Unchanged at $18,000 for 2016 Ponte Vedra Beach, FL — (October 23, 2015) —  The IRS announced yesterday that there will be no cost of living adjustments for qualified pension and defined contribution plans.  The important retirement plan limits for 2016 and 2015 are summarized below: 2016 2015 Elective Deferral Limit for 401(k) and 403(b) Plans $18,000 $18,000 Age 50 Catch Up Limit for 401(k) and 403(b) Plans $6,000 $6,000 415 Defined Contribution Plan Limit $53,000 $53,000 Qualified Compensation Limit $265,000 $265,000 Highly Compensated Employee Limit $120,000 $120,000 Key Employee Officer Compensation Limit $170,000 $170,000 Social Security Taxable Wage Base $118,500 $118,500 Read the complete IRS announcement here: IRS Announces 2016 Pension Plan Limitations (October 21, 2015) About Fulcrum Partners LLC : Fulcrum Partners LLC (www.fulcrumpartnersllc.com) is one of the nation’s leading and largest executive benefits consultancies. A team of experienced industry professionals, the consultants at Fulcrum Partners focus on an integrated approach to the design, financing, and plan administration of executive benefits programs. Fulcrum Partners LLC is a wholly independent, member-owned firm dedicated to helping organizations enhance their Total Rewards Strategy. Founded in Ponte Vedra Beach, FL in 2007, today the company has
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October 19, 2015

Baby Boomers Are Not Prepared for Retirement

Fulcrum Partners News

Baby Boomers Are Not Prepared for Retirement According to the Insured Retirement Institute (IRI), many Baby Boomers are not prepared for retirement. That’s a situation that no doubt weighs heavily on the minds of individuals and couples rapidly approaching retirement without adequate (or any) retirement savings. In fact, however, this situation should concern everyone as it foreshadows a problem that will inevitably impact the U.S. economy at many levels. Within the demographic identified as Baby Boomers (those born between 1946 and 1964): 40 percent have no retirement savings at all. 69 percent have no defined benefit plan. And even among those who do have savings, 59 percent have saved less than $250,000 and 37 percent have saved less than $100,000. Why does this spell trouble for the entire economy? Boomers account for a significant percentage of the population. Pew Research Center population projections show that by 2030, when the last of the Baby Boomers will have turned age 65, 18 percent of the nation’s population will be 65 or older. In March of 2012, US News, published a report stating that, at that time, there were, “5 million baby boomers … on the verge of retirement. For the next twenty years, an average of 10,000 people each day will reach age 65, which has historically been the retirement phase of life.”
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September 01, 2015

Variable Universal Life Insurance

Fulcrum Partners News

Variable Universal Life Insurance: Weighing the Pros and Cons In an August 28, 2015 article, Ed McCarthy, CFP, RICP challenged perceptions about variable universal life insurance, (VUL) pointing out the pros, the cons, and a few misunderstood aspects of this niche insurance product. As McCarthy pointed out, “VUL also generates strong reactions: some advisors swear by it while others swear at it.” Scott Cahill, a founder and managing director of Fulcrum Partners LLC, was interviewed for the article. He offered his insights on VUL, including explaining the unique circumstances when this product can be a good choice, even for consumers in their sixties. Scott offered this rule of thumb suggestion for those considering the purchase of variable universal life insurance: “What I look at is, is my after-tax cash surrender value higher in the life insurance policy at the end of seven years or is it going to be higher if that (premium) goes directly into the mutual funds assuming, a blended tax rate on the funds of 30 percent?” asks Cahill. “If it’s going to be higher in the cash surrender value on a projected basis, then of course [I buy the VUL policy] because I’m saving on taxes.”  To read the full content of this article, you can view it online
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August 18, 2015

Fulcrum Partners Helps Build a School in Rwanda

Fulcrum Partners News

Fulcrum Partners Helps Build a School in Rwanda John Gasangwa was a five-year-old child during the 1994 genocide in Rwanda. His family, forced from their home, took refuge in a Ugandan camp. John explained, “During the Genocide, Rwanda was DARK … After the Genocide Rwanda chose to have hope and continue the process of healing, unity, and reconciliation and focusing on building a reconciled Rwanda with self-reliance for Rwanda.” Today, John is a leader in helping Rwanda rebuild and heal. After earning a degree in Economics and Business Management from the Université Nationale du Rwanda and an MBA in Global Social Sustainable Enterprise from Colorado State University, John established ARM—Arise Rwanda Ministries. Founded with a mission to bring education, clean water, and community development to the impoverished city of Boneza, Rwanda, Arise Rwanda is making a difference. Fulcrum Partners, with a donation of $10,000 for the construction of a secondary school in Boneza, is helping to make this meaningful change possible. Among the many significant accomplishments of Arise Rwanda Ministries are: Eight water wells drilled to provide clean water to villagers with one of the wells further mechanized for expanded water distribution to additional families. A 10,000-gallon water catchment system
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July 29, 2015

Fulcrum Partners is Corporate Sponsor for NYC Luis Palau Association Event

Fulcrum Partners News

Fulcrum Partners is Corporate Sponsor for NYC Luis Palau Association Event This past month, Fulcrum Partners again served as a corporate sponsor for the Luis Palau Association CityServe ministry, this time, helping to underwrite the cost of the organization’s recent New York City event. Jennifer Jones Austin, head of the Protestant Welfare Agencies of New York City and member of the NY CityServe Executive Committee, spoke during the event’s Radio City Music Hall celebration. Austin noted that NY CityServe had included service initiatives that mobilized, “hundreds of Christians to love the city through ongoing, long-term service projects.” Austin observed, “CityServe has come to New York City much like God sends his angels. How fortunate we are that Luis Palau has brought CityServe to New York City.” You can learn more in Fulcrum Partner’s July 29, 2015 media release about this corporate sponsorship (see document below) or download it as a PDF at this link: Fulcrum Partners is Corporate Sponsor for NYC Luis Palau Association Event. [slideshare id=51062832&doc=fulcrumpartnerssupportsluispalauassociation-150729145619-lva1-app6891&type=d] Video about the Luis Palau Association and its Global Ministry: “Luis Palau Festival New York 2015 | God is on the Move in New York City”
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July 22, 2015

Obama’s Big Idea for Small Savers: Trust the Robo Advisor

Fulcrum Partners News

Obama’s Big Idea for Small Savers: ‘Robo’ Financial Advice Obama’s Big Idea for Small Savers: ‘Robo’ Financial Advice (publication date: July 21, 2015) , a Wall Street Journal Opinion/Commentary, authored by Robert Litan and Hal Singer, observes, “If you’re not on a path to a secure retirement, the White House suggests it’s because an evil broker is ripping you off.” As the piece goes on to point out, “Expecting robots to safeguard the retirement security of small savers is the kind of policy hubris that could only come after a six-year bull market, when officials have forgotten that what goes up can also come crashing down.” The article begs the obvious question: Are Americans comfortable with the Federal Government dictating how they receive investment advice? Wall Street Journal subscribers can read the full article at http://on.wsj.com/1Kj2Nh2.  
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July 16, 2015

Compensation Clawback Policies: SEC Proposes New Rules

Fulcrum Partners News

With Securities and Exchange Commission (SEC) proposed rule changes regarding compensation clawback policies potentially leading to Nasdaq, the NYSE, and other national securities exchanges and associations adopting listing standards applicable to listed companies, Fulcrum Partners recommends that listed companies plan for the review of existing incentive-based compensation arrangements and any other plans or agreements that are affected by incentive compensation, such as deferred compensation plans or supplemental executive retirement plans. The goals of such review would include determining whether there is an existing contractual right to recover compensation and to consider whether to modify the arrangements to permit recovery in the future. The following article released earlier this month by Foley and Lardner looks at these proposed rule changes. Below is an excerpt from “SEC Proposes Rules on Compensation Clawback Policies,” written by Joshua A. Agen and Leigh C. Riley. You can read the full article at Legal News: Employee Benefits & Executive Compensation SEC Proposes Rules on Compensation Clawback Policies On July 1, 2015, the Securities and Exchange Commission (SEC) proposed rules relating to compensation clawback policies. The rules, if adopted, would implement the requirements of Section 954 of the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 (Dodd Frank) by directing national securities exchanges and associations, such as the NYSE and Nasdaq, to adopt listing
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July 04, 2015

Happy Birthday America

Fulcrum Partners News

Happy Birthday America from Fulcrum Partners LLC! Wishing you a safe, relaxing July 4 holiday.
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