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. 
Featured image for “Fulcrum Partners Executive Benefits Supports Valmark Global Gift Fund”
December 14, 2016

Fulcrum Partners Executive Benefits Supports Valmark Global Gift Fund

Fulcrum Partners News

Fulcrum Partners Executive Benefits Supports Valmark Global Gift Fund PONTE VEDRA BEACH, FL  — (Dec. 14, 2016) – Fulcrum Partners LLC, a leading U.S. executive benefits consultancy, continues its support of Kivu Hills Academy, the first vocational school in Boneza, Rwanda. With its donations totaling $30,000 over the past three years, Fulcrum Partners, through the Global Gift Fund of Valmark Financial Group, has helped Arise Rwanda complete Phase I of the school. Kivu Hills Academy provides both vocational and academic education to post-eighth grade students, offering a curriculum that enables students to combine learning with hands-on work experiences. Arise Rwanda is a 501(c)(3) nonprofit, faith-based organization, founded by John B. Gasangwa, the driving force behind Kivu Hills Academy. Arise Rwanda provides management and oversite for the school and its programs. The organization focuses on clean water, micro enterprise, and education, believing that education is the foundation of a community. Gus Comiskey, Managing Director, Fulcrum Partners Houston, said, “It’s been exciting for us to be part of this project from the very beginning. We celebrated with Arise Rwanda when in 2015, the cornerstone for the academy was laid, and a year ago, when the first classes were held in the new
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December 06, 2016

Mid-Market Executive Compensation Study Released: 2016/2017

Executive Benefits News

Mid-Market Executive Compensation Study Released: 2016/2017 Last week, the CFO Alliance announced the completion and availability of the 2016/2017 Mid-Market Executive Compensation Study. This study surveyed more than 6,000 CFOs  and executives in both public and private mid-sized organizations throughout the U.S. Among the report’s insights are: 1.) Significant differences in compensation by industry sector, company size, and region. 2.) Key drivers of changes in short-term and long-term incentive compensation plans. Additionally, performance metrics used to determine compensation components are identified and analyzed. To read the full announcement regarding the Mid-Market Executive Compensation Study, go to: www.prweb.com/releases/2016/12/prweb13891495.htm. To obtain the full report, contact the CFO Alliance www.TheCFOAlliance.org or call 484-437-2750. About the CFO Alliance: The CFO Alliance is both a collaborative online community platform and the host of frequent learning and networking events in more than 10 cities across North America. In addition, the CFO Alliance sponsors several important studies each year including the 2017 CFO Sentiment Study, frequent “Pulse” surveys on timely topics, and this Annual Mid-Market Executive Compensation Study.    
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November 30, 2016

2016 Year-End Compliance Checklist Employment Benefit Plans Isler Dare

Human Resources

The following update was prepared by IslerDare PC and is shared here with their permission as Fulcrum Partners continues to provide education and insight on the changes and clarifications to rules involving employment benefit plans. You may download this report on the Resources Page (2016 Year-End Compliance Checklist) of the Fulcrum Partners website. 2016 Year-End Compliance Checklist: Employment Benefit Plans With the results of the Presidential election just behind us, it is likely that the landscape of employee benefit plans—and the regulations that govern them—will change. For the time being, however, there are still some important compliance deadlines quickly approaching, so we wanted to remind plan sponsors of these key compliance actions as 2016 comes to a close: November 15, 2016 Transitional Reinsurance Report and Fee for Self-Funded Group Health Plans: If you sponsor a self-insured group health plan, you (or your third-party administrator (“TPA”), on behalf of the plan) must report your enrollment count, calculate your reinsurance fees of $27 per covered life for 2016, and schedule the required reinsurance payment. The reinsurance payment can be made in one payment no later than January 15, 2017, or in two payments, with the first payment of $21.60 per covered life due no later than
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November 28, 2016

Wanted: New Financial Professionals, a Profession with Room to Grow

Executive Benefits News

Wanted: New Financial Professionals, a Profession with Room to Grow According to an article published last month in The Alert Investor, the number of financial professionals in the United States has declined by 39,000 individuals over the past eight years. Clay Skurdal, the founding partner of Advisors Ahead, says that many college programs lack coursework in holistic services, which he describes as the approach that focuses on, “… trying to help people solve for a 360-degree view for their entire financial life.”  In addition to a dearth of college programs to attract students, the article, Millennials Wanted: Why Aren’t More Young People Becoming Financial Professionals? cites attrition in the current ranks and the perceived lack of mentorship for young professionals as other reasons adding to the decline. At a recent conference, Susan Axelrod, the executive vice president of regulatory operations at the Financial Industry Regulatory Authority, (FINRA) urged firms to adapt to younger workers’ desire for mentorship. Axelrod said: “By pairing new employees with more experienced advisors, new recruits can get regular feedback and learn without feeling siloed.” Do Financial Professionals Suffer from an Image Problem? Alice Gomstyn, author of the article, cites another important cause for the declining numbers of financial professionals, pointing to an image
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November 24, 2016

Happy Thanksgiving from the Nationwide Team at Fulcrum Partners

Fulcrum Partners News

From the Nationwide Team at Fulcrum Partners American short-story author, O. Henry wrote: “There is one day that is ours. Thanksgiving Day is the one day that is purely American.” Let us all be purely American today, thankful and giving. From the entire team at Fulcrum Partners,  we wish you a safe, blessed, and joyful holiday.  
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November 21, 2016

Roundup of Recent Legal Developments Impacting Your Health and Welfare Plans

Human Resources

The following update was prepared by IslerDare PC and is shared here with their permission as Fulcrum Partners continues to provide education and insight on the changes and clarifications to health plan and benefit rules. You may download this report on the Resources Page (A Roundup of Recent Legal Developments Impacting Your Health and Welfare Plans) of the Fulcrum Partners website. A Roundup of Recent Legal Developments Impacting Your Health and Welfare Plans Executive Summary The Federal Government has issued a series of new rules addressing gender identity discrimination and transgender rights, which may impact the benefits that you are required to offer under your health insurance plans. The IRS issued proposed regulations on the treatment of “opt-out” payments that employees may receive for waiving an employer’s medical coverage, providing that properly structured payments will not be considered employee contributions for purposes of determining whether the coverage that is offered is affordable under the employer-shared responsibility provisions of the Affordable Care Act (the “ACA”). The proposed regulations will apply beginning with the first plan year beginning on or after January 1, 2017, although they can be relied on immediately. Employers have started to receive notices from the Health Insurance Marketplaces informing them that
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November 15, 2016

Executive Benefits: Leverage to Minimize Your Cost While Maximizing Executive Reward

Fulcrum Partners News

Fulcrum Partners LLC … leverage to minimize your cost while maximizing executive reward Companies that attract remarkable talent have a commanding advantage over their competition. Organizations that retain valued top executives thrive while those that cannot compete may lose their footing, quietly disappearing from the marketplace. Today’s exemplary employees rightfully expect to be rewarded in ways that provide both immediate and long-term value. Yet benefits strategies that rely on hefty salaries, big bonuses, and qualified plans can backfire. Inherently inflexible, such approaches may encumber companies, frustrate executives, and set shareholders on edge. Even in corporate environments where everything appears to be flowing smoothly, how do organizations and executives know how they truly stack up against their peers and if the company’s resources are being utilized wisely and for optimal return? How can you and your company be certain that penny by penny, you aren’t losing your edge? Nationwide Presence. Personalized Attention. Bespoke Solutions. In 2007, a core group of seasoned executive benefits professionals launched Fulcrum Partners LLC. Purposefully assembled, this collective of highly experienced and disruptively creative managing directors has an average tenure in the financial industry of twenty-five years. Fulcrum Partners provides its clients with an integrated approach to
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November 11, 2016

Substantial Risk of Forfeiture: IRC 409A and 457

Executive Benefits News

Summary: Substantial Risk of Forfeiture, IRC 409A and 457.  After the U.S. Treasury announced changes and modifications to Sections 409A and 457 of the Internal Revenue Code this past June, it also initiated a standard period during which comments could be filed regarded the proposed changes. The deadline for submitting comments to the IRS, regarding modifications to Sections 409A and 457, closed on September 20, 2016. In a previous blog post, Fulcrum Partners News shared concerns voiced by the Permanente Medical Group, Inc. (TPMG) regarding issues of Bona Fide Volunteers, Separation of Service, and 409A Tax Code Modifications (For more on this see: Could 409A Tax Code Negatively Impact Volunteerism?). Substantial Risk of Forfeiture: IRC 409A and 457 Today’s Fulcrum Partners News update looks at another issue that was voiced during the open comment period, that of defining “Substantial Risk of Forfeiture.” In comments raised by Ice Miller LLP (“Ice Miller”) re: Substantial Risk of Forfeiture (457 Regulations), a suggestion was made regarding definition. (You can read this comment and recommendation in entirety here: Fulcrum Partners LLC IRS Comment Letter Substantial Risk of Forfeiture). Regarding 409A Regulations, likewise, Ice Miller suggested clarification of the  definition of Substantial Risk of Forfeiture, recommending the following edits: We also note that the first sentence of
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Featured image for “Marc Cadin Named COO of AALU, America’s Leading Organization Life Insurance Professionals”
November 02, 2016

Marc Cadin Named COO of AALU, America’s Leading Organization Life Insurance Professionals

Executive Benefits News

Fulcrum Partners News is pleased to share the following announcement from AALU. The organization’s announcement to the media can also be read on the AALU website. Chief Executive Officer David Stertzer (AALU) announced the promotions of Marc Cadin and Chris Morton at the executive level. RESTON, VA (PRWEB) OCTOBER 24, 2016 AALU CEO David Stertzer announced that Marc Cadin has been named AALU’s Chief Operating Officer. In his new role, Cadin is charged with ensuring that AALU members and key stakeholders receive a return on investment, return on objective, and a return on relationships as AALU pursues its new strategic direction to align the life insurance distribution community. “While the life insurance community, and distribution in particular, face challenges, I am more certain than ever that the American people need more of the financial security and independence that our members provide,” said Stertzer. “Marc is the right person to help align our resources and lead our team so that life insurance-centric distribution can continue to be part of the solution for consumers.” “I am thrilled to lead the next chapter of AALU’s development,” Cadin said. “With our excellent team, members, and volunteers, I know we will be able to achieve
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Featured image for “Jonathan Kearn Joins Fulcrum Partners”
October 13, 2016

Jonathan Kearn Joins Fulcrum Partners

Fulcrum Partners News

Fulcrum Partners Executive Benefits Expands Orlando Team Ponte Vedra Beach, FL (October 13, 2016) With the announcement of the addition of financial consultant, Jonathan Kearn, Fulcrum Partners LLC, continues its aggressive expansion as one of the leading and largest executive benefits consultancies in the United States. Kearn, who will join the Fulcrum Partners Orlando office, is the fifth new financial professional to become part of the Fulcrum Partners team this year. Scott Cahill, a company founder and the managing director of Fulcrum Partners Orlando says, “The Fulcrum Partners strategic growth plan has resulted in significant expansion in our Orlando, Chicago, and Los Angeles offices over the past eight months. We’ve also seen steady growth at our nine other nationwide locations. Jon Kearn, with twelve years of private practice experience providing effective and efficient financial solutions, exemplifies the type of young talent Fulcrum Partners is attracting as an executive benefits consultancy that is both highly knowledgeable and disruptively creative.” Jonathan Kearn, formerly with New York Life, grew up in his family’s success-driven business, Kearn and Associates. He is a University of Florida Honors Program graduate, a graduate of the NYLIC University Insurance Program, and holds a Series 6 Securities license and
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