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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August 15, 2016

The Fulcrum Partners Newsletter Gets a New Look

Fulcrum Partners News

A New Look for the Fulcrum Partners Newsletter We’ve updated the Fulcrum Partners newsletter to bring you more information on executive benefits, deferred compensation, institutional benefits financing, and other relevant topics that impact strength, stability, and financial wellness for you and your organization. We hope you will read our newsletter, forward it to interested peers, and share it on all your social media platforms. If You Don’t Already Receive the Fulcrum Partners Newsletter You can sign up here on the Fulcrum Partners blog page (see right-hand column) or on the left-hand side of either the “Contact” page or the “Team” page. Note: be sure you sign up now so that you receive tomorrow’s issue that includes an update on, “Why Proposed Changes to Section 409A and Section 457 Regulations Matter to You.”  
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August 11, 2016

Fulcrum Partners Supports Luis Palau Global Ministry in Malawi

Fulcrum Partners, a One Digital Company Media Releases

Sharing with you the most recent media release from Fulcrum Partners LLC. Fulcrum Partners Supports Luis Palau Global Ministry in Malawi FOR IMMEDIATE RELEASE PONTE VEDRA BEACH, FL– (August 11, 2016) Fulcrum Partners LLC, one of the nation’s leading and largest executive benefits consultancies, is a corporate sponsor of an expansive ministry outreach that involves more than 700 churches in Malawi, Africa. The “Love Malawi” Festival is a collaborative project of Andrew Palau and the Luis Palau Association. Currently, events are being hosted in five of Malawi’s larger cities, as well as the Dzaleka Refugee Camp, which houses people from Ethiopia, Rwanda, and the Democratic Republic of Congo. For more than a month, ministry workers and volunteers including civic leaders, church congregations and global participants, serve within Malawi communities, organizing music and sports entertainment, networking opportunities to grow local businesses, prayer and ministry experiences and the distribution of eyeglasses, shoes, soccer balls and other needed items. Scott Cahill, (Orlando, FL) a cofounder and managing director of Fulcrum Partners, said, “Our work at Fulcrum Partners helps people achieve personal goals through the stability and abundance that comes with financial wellness. When we can expand that, facilitating hope, direction and opportunity in
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August 09, 2016

Retirement Plan Fees: 3 Major Universities Sued

Executive Benefits News

M.I.T., N.Y.U. and Yale Are Sued Over Retirement Plan Fees An article, (“M.I.T., N.Y.U. and Yale Are Sued Over Retirement Plan Fees,”) published in the New York Times (August 9, 2016) stated that attorney Jerome J. Schlichter, representing employees of Yale, New York University, and Massachusetts Institute of Technology, has filed a lawsuit against the respective universities. The complaint alleges that the universities, as Plan Sponsors of the employee’s retirement plans, failed to monitor excessive fees, allowing their employees to be charged unduly high fees on retirement savings and that the universities failed to “replace more expensive, poor-performing investments with cheaper ones.” According to the article, written by personal finance reporter, Tara Siegel Bernard, “The universities … each have retirement plans holding more than $3 billion in assets.” Although attorney Schlichter is considered to be a pioneer in retirement plan litigation, having filed more than 20 lawsuits on  behalf of workers, these actions have primarily been to represent the interest of workers who participate in 401(k) retirement plans. The retirement plan fees in question here are related to 403(b) plans, which are offered by public schools and other nonprofit institutions. According to the NY Times: Had the plans eliminated their long lists of investment options and used their bargaining power to cut costs, the complaints
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July 19, 2016

Retirement Security: U.S. Not Even in Top 10

Executive Benefits News

According to a Business Wire media release published July 19, 2016, titled, “United States Ranks 14th in retirement security in 2016 Natixis Global Retirement Index,” the United States failed to be ranked even among the top 10 countries for best practices in retirement policy. The research, which is part of the 2016 Global Retirement Index, and was released by Natixis Global Asset Management, examined the key factors that drive retirement security across 43 countries worldwide. Countries at the top of the list include: Norway Switzerland Iceland New Zealand Sweden Australia Germany The Netherlands Austria Canada Retirement used to be simple: Individuals worked and saved, employers provided a pension, and payroll taxes funded government benefits, resulting in a predictable income stream for a financially secure retirement,” said John Hailer, CEO of Natixis Global Asset Management in the Americas and Asia. “Demographics and economics have rendered the old model unsustainable, but the leaders in our index are finding innovative ways to adapt to the new reality and provide a blueprint for the rest of the world.” Why Does the U.S. have Retirement Security Challenges? A number of issues exacerbate the challenge of retirement security in America, according to the report. Although the U.S. benefits in
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July 13, 2016

Survey on Employee Benefits Shows Changes and Consistencies Over the Years

Executive Benefits News

Survey on Employee Benefits Shows Changes and Consistencies Over the Years The Society for Human Resource Management (SHRM) has published an annual employee benefits survey for twenty years. In 1996, the survey reported on 60 employee benefits. This year, 344 employer provided benefits to employees were included in the report, thirteen of which are new items. Click here to read the full 2016 Employee Benefits Research Report. The SHRM Employee Benefits Report categorizes results into twelve benefits sections. These are: Business travel benefits. Employee programs and services. Family-friendly benefits. Financial and compensation benefits. Flexible working benefits. Health-related benefits. Housing and relocation benefits. Leave benefits. Professional and career development benefits. Retirement savings and planning benefits. Wellness benefits. Other benefits. The report summarizes its key findings by listing three important observations. From 2015 to 2016, three out of five organizations (60 percent) report that their benefits offerings have remained the same, one-third (33 percent) report an increase and 7percent a decrease in benefits—similar to changes from 2014 to 2015. Compared with five years ago, more organizations are offering monetary bonus benefits such as employee referral bonuses, spot/bonus awards, sign-on bonuses for executives and nonexecutives, as well as retention bonuses for nonexecutives. Looking back
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July 04, 2016

Happy Independence Day from Fulcrum Partners LLC!

Fulcrum Partners News

Happy Independence Day from Fulcrum Partners LLC! The team at Fulcrum Partners wishes you and your family a fun, safe, and Happy July 4th holiday. From everyone in our nationwide offices:                                                                                                                                                                                                 “Happy Independence Day!” Steve Broadbent Atlanta, GA Tom Chisholm Chicago, IL Christopher H. Nyland Charleston, SC David H. Fisher Columbus, Oh Kristine Kopsiaftis Delray Beach, FL Roy Imai Honolulu, HI Gus Comiskey, Jr. Houston, TX Stephen M. Kaufman Houston, TX Phillip L. Currie, Jr. Los Angeles, CA Adam Monson Los Angeles, CA Paul S. Murray Los Angeles, CA Scott Cahill Orlando, FL Wesley Hackett Orlando, FL Bruce Brownell Ponte Vedra Beach, FL Joseph
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June 28, 2016

Flexibility Offered for Deferred Compensation Plans of Tax-Exempt Organizations, Government Agencies

Executive Benefits News

The article posted below was published by JD Supra Business Advisor, and authored by Brian Pinheiro and Diane Thompson of Ballard Spahr LLP. Originally released June 23, 2016, the article looks at two sets of proposed regulations under Sections 457 and 409A of the Internal Revenue Code. The U.S. Treasury Department has issued the proposed regulations, relating to deferred compensation plans of state and local governments and tax-exempt organizations, including: Health Systems Universities Foundations Other nonprofit entities The article includes an in-depth look at the highlights of the new proposed regulation. A public hearing on the proposed changes is scheduled for this fall. As Pinheiro and Thompson observed, it is important that: All state and local government employers, and all tax-exempt employers, should review their deferred compensation, severance, and paid-time off arrangements in light of the new proposed regulations. Some adjustments to the arrangements may be needed to maintain compliance, but there also may be opportunities to take advantage of the unexpected flexibility contained in the proposed regulations.” You can read the full text of the article below.
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May 31, 2016

Fulcrum Partners Team Inspired as Kivu Hills Academy First Term Completed

Fulcrum Partners News

Fulcrum Partners Team Inspired as Kivu Hills Academy First Term Completed The team at Fulcrum Partners has been part of the journey to build and launch the first vocational high school in Boneza, Rwanda for more than two years. (See: Fulcrum Partners Supports Valmark Global Gift Fund and Completing Phase I of Construction at Kivu Hills Academy). We celebrate with the Arise Rwanda Ministry as the school’s first class now completes its first term. To commemorate this milestone, the school held a Dedication Ceremony, inviting district and sector leaders, local pastors, and ARM Board member Pam Fogg, and founder John Gasangwa. The following speech given by Eric Ndayishimiye, one of the members of the first class who call themselves Pioneers, says it all: Good Morning, ladies and gentlemen. Our guest of Honor, Pam Fogg; President and founder of Arise Rwanda Ministries, John Gasangwa; Honorable Odette Nyiramirimo; District and Sector leaders; Pastors and Arise Rwanda staff; Hill Academy staff; My fellow Kivu Hills Academy students; Friends and partners of KHA and ARM. On behalf of my fellow students, I would like to take this opportunity to welcome you all for the noble Kivu Hills Academy dedication ceremony and to move a vote of thanks to all stakeholders. To the Pioneers of KHA –
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May 30, 2016

Executive Talent: Attract It and Retain It

Fulcrum Partners News

Attract and Retain Executive Talent.
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May 26, 2016

Investment Brokers to Pay Two Pro Athletes in Arbitration Award

Fulcrum Partners News

Investment Brokers to Pay Two Pro Athletes in Arbitration Award In an update shared by InvestmentNews.com, BusinessInsider.com, and others, two pro athletes have won an $819,000 arbitration award against Morgan Stanley Smith Barney investment brokers. The athletes are Keyon Dooling, a former NBA player and John St. Clair, a former NFL player. InvestmentNews.com wrote: The Financial Industry Regulatory Authority announced on Tuesday that Morgan Stanley Smith Barney was ordered to pay two former professional athletes over $800,000 after its brokers recommended “worthless” investments…” This is not the first such award involving professional athletes. In March 2013, the Financial Industry Regulatory Authority (FINRA) issued this media release: FINRA Bars Florida Broker for Unsuitable Recommendations and Unapproved Securities Transactions Involving 31 NFL Players In the 2013 case, FINRA barred broker Jeffrey Rubin of Lighthouse Point, Florida, from the securities industry for, “making unsuitable recommendations to his customer, an NFL player, to invest in illiquid, high-risk securities issued in connection with a now-bankrupt casino in Alabama. As a result, the customer lost approximately $3 million. Based on Rubin’s referrals, 30 other NFL players also invested in the casino project and lost approximately $40 million. Rubin also failed to obtain the required approval from his employers to participate in the
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