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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May 24, 2016

CEO Tears Up His Own Executive Contract

Fulcrum Partners News

CEO Tears Up Executive Contract Becomes At Will Employee In a move that has drawn both praise and criticism, American Airlines CEO Doug Parker is becoming an ‘at will’ employee, tearing up his own executive contract. The move, documented by the Securities and Exchange Commission (click to view regulatory filing), means that Parker is no longer guaranteed a set level of compensation and benefits. Likewise, in the event of a change in control at American Airlines, he is not protected or covered by severance provisions. The action to void his own executive contract, giving up any ‘golden parachute’ is voluntary, and follows on Parker’s decision last May to give up the cash portion of his executive compensation and switch to being paid only in stock. Read more at: What, no parachute? Why American Airlines CEO Doug Parker is becoming an ‘at will’ employee
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May 17, 2016

Interest Rates: Money Magazine Warns Rising CPI Could Pave the Way for Fed Hike

Executive Benefits News

Interest Rates: Money Magazine Warns Rising CPI Could Pave the Way for Fed Hike Many financial forecasters believe that an increase in interest rates in 2016 is inevitable. With the price of gasoline now creeping up again and rents continuing to rise,  in April, U.S. consumer prices recorded the biggest increase in more than three years. An online update titled, “Gas and Rent Increases Drive Consumer Prices to Biggest Gain in More Than 3 Years,” (Lucia Mutikani / Reuters published by Money magazine,) stated: The rise in prices in April is likely to be welcomed by Fed officials who last month softened their language on inflation at the end of a regular meeting, noting that it continued to run below target because of “earlier declines in energy prices and falling prices of non-energy imports.” The Federal Reserve report: Industrial Production and Capacity Utilization – G.17, released May 17, 2016, documented the following: “Industrial production increased 0.7 percent in April after decreasing in the previous two months. Manufacturing output rose 0.3 percent after declining the same amount in March. The index for utilities jumped 5.8 percent in April, as the demand for electricity and natural gas returned to a more normal level after being suppressed
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May 11, 2016

CNN Money Reports 5 Big Banks Violating Dodd-Frank Rules

Executive Benefits News

CNN Money Reports 5 Big Banks Violating Dodd-Frank Rules In an article written by David Goldman, CNN Money reported:  “Five major U.S. banks are in violation of Dodd-Frank rules that are meant to prevent “too big to fail” institutions from causing another financial crisis.” The article stated that the Federal Reserve and the FDIC identified problems in  the proposed plans designed for use by the bank in the event of a financial failure, for each of the following financial institutions: JPMorgan Chase Bank of America (BAC) Wells Fargo Bank of New York Mellon (BKPRC) and State Street (STT) Sometimes described as “living wills,” these plans require banks with assets of $50 billion or more to outline a plan for a quick and orderly bankruptcy in the event the company goes under or it encounters severe financial distress. The requirement is one of the terms set in place by the  Dodd-Frank Wall Street Reform and Consumer Protection Act that was signed into effect by President Obama in July 2010. Other banks with living wills that are in question include Goldman Sachs (GS) and Morgan Stanley (MS); also Citigroup’s plan was approved, but was found to have some shortcomings that Citigroup will be required to
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May 03, 2016

Fulcrum Partners Continues Strategic Growth Plan, Adding New Financial Consultant

Executive Benefits News

Fulcrum Partners Media Release, Announcing addition of Financial Consultant Wesley Hackett May 03, 2016 09:59 ET Fulcrum Partners Continues Strategic Growth Plan, Adding New Financial Consultant PONTE VEDRA BEACH, FL–(Marketwired – May 3, 2016) – Fulcrum Partners LLC announces the addition of Financial Consultant Wesley Hackett to the company’s nationwide team. Fulcrum Partners is one of the leading and largest executive benefits consultancies in the United States, and has eleven offices located across the country, in addition to its corporate headquarters in Ponte Vedra Beach, Florida. Hackett, an Orlando native, will be part of Fulcrum Partner’s Orlando executive benefits consulting and institutional benefit financing services office. A company founder and Managing Director, Scott Cahill, also based in the Orlando office, said, “Wes grew up working in his family’s construction company. He has insight and an earnest commitment to serve and support businesses and family-owned companies. He is already proving himself to be a valuable asset in helping Fulcrum Partners reach its aggressive growth and service goals.” In addition to his role at Classic Contractors Unlimited, Wesley Hackett has been a Financial Representative with Lelle & Mitchell Wealth Management and a Financial Advisor with AXA Advisors, where he specialized in working
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April 28, 2016

Curbing Executive Pay on Wall Street

Executive Benefits News

Curbing Executive Pay on Wall Street Last week U. S. Regulators proposed new rules to address issues inherent in how Wall Street executive pay is currently handled. Under the new proposal, senior executives at the largest firms, according to the Wall Street Journal, “…would have to defer more than half their bonus pay for four years…” The regulation would impact the executive pay of potentially tens of thousands of bankers on Wall Street. In an article by Donna Borak and Andrew Ackerman (Washington) and Christina Rexrode  (New York) “… many on Wall Street say it (the new ruling) threatens to exacerbate a flight of talent from the banking sector to other fields such as hedge-fund firms and technology companies that have few limits on what they can pay employees.” The Washington Post points out that “reining in” Wall Street may not be easy. “Reining in Wall Street pay has been one of the most complicated, and controversial, parts of 2010s financial reform package approved by Congress, known as the Dodd-Frank Act. A team of regulators, including those from the Securities and Exchange Commission and the Federal Reserve, initially proposed limits to pay and bonuses given to top executives at financial
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April 25, 2016

FINRA Securities Helpline for Seniors Marks First Year, with $1.3M Returned to Investors

Fulcrum Partners News

FINRA Securities Helpline Marks First Year, with $1.3M Returned to Investors Last week, the Financial Industry Regulatory Authority  (FINRA) released an announcement chronicling the accomplishments of its FINRA Securities Senior Helpline, launched just one year ago. Dedicated to helping seniors address and avoid financial fraud, more than 4200 calls have been processed through the helpline in the past year.  Callers can receive assistance from FINRA or raise concerns about issues with brokerage accounts and investments.  The media announcement is published below in entirety and can also be viewed in the FINRA Website Newsroom. FINRA Securities helpline” width=”300″ height=”112″ />Through FINRA Oversight, Seniors Have Obtained Voluntary Reimbursements From Firms WASHINGTON – The Financial Industry Regulatory Authority (FINRA) today marks the one-year anniversary of the FINRA Securities Helpline for Seniors 1-844-57-HELPS (1-844-574-3577). To date, the helpline has fielded more than 4,200 calls, recovering over $1.3 million in voluntary reimbursements from firms since its launch in April 2015. “Financial fraud is a problem, and seniors are the most vulnerable. Victims of fraud sometimes feel they have nowhere to go, or are embarrassed to reach out,” said Susan Axelrod, FINRA Executive Vice President, Regulatory Operations. “We are very pleased that investors are using our free helpline and encourage seniors, or those caring
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April 15, 2016

Plan Sponsors Need to Review Recovery and Anti-Assignment Provisions

Human Resources

The following update was prepared by IslerDare PC and is shared here with their permission. You may download this report at Recent ACA Guidance Provides Needed Relief for Health and Welfare Plan Sponsors Employee Benefits Update (February 2016) or on the Resources Page (see Plan Sponsors) of the Fulcrum Partners website. Court Decisions Highlight the Need for Plan Sponsors to Review Recovery and Anti-Assignment Provisions Executive Summary The Supreme Court recently held in Montanile v. Board of Trustees of the National Elevator Industry Health Benefit Plan that an ERISA benefit plan could not enforce its right to be reimbursed for medical expenses it had paid on behalf of an injured participant when the participant had spent other funds that he received in his personal injury settlement on “non-traceable” items such as food or travel. Plan sponsors of self-funded medical plans should also be aware of a growing trend where out-of-network medical providers such as ambulatory surgery centers or chiropractors allege that medical plans have systematically underpaid the providers for out-of-network claims. These providers take the position that they have a right to bring a lawsuit because their patients have assigned their rights to payment under the plan to the provider through a general assignment
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March 31, 2016

Executive Talent: Fulcrum Partners Advises Resort Industry Be Competitive

Fulcrum Partners, a One Digital Company Media Releases

Executive Talent: Fulcrum Partners Advises Resort Industry to Be Competitive Ponte Vedra Beach, FL (March 31, 2016) In an article that appeared in the March 2016 issue of Resort Trades magazine, executive benefits consultancy, Fulcrum Partners LLC, challenged the timeshare and vacation ownership industry to become even more competitive for top talent (executive talent) through the strategic development of Long Term Incentive Plans. Citing University of Central Florida Rosen College of Hospitality Management Assistant Professor, Amy Gregory, who identified growth indicators that suggest competition for top talent in the timeshare sector will get tougher in the years ahead, Fulcrum Partners has recommended strategies to help the industry remain competitive. Co-founder and Managing Director of Fulcrum Partners, Scott Cahill, explained, “Bonuses and higher salaries may lack strategic differentiators to help protect the interests of the company and the executive. Two executive benefits packages can seem comparable at first glance. However, aligning the long term incentive compensation with corporate objectives such as 3-year rolling EBITDA, bank covenants, ROI and other critical metrics will drive the desired performance and outcomes. Including strong retention features can prove very helpful as the competitive landscape for talent is red hot right now.” Fulcrum Partners LLC. is
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March 29, 2016

Deadline Approaches for Health and Welfare Plan Sponsors to Supply Forms to Individuals

Human Resources

The following update was prepared by IslerDare PC and is shared here with their permission. You may download this report at Recent ACA Guidance Provides Needed Relief for Health and Welfare Plan Sponsors Employee Benefits Update (February 2016) or on the Resources Page (see Plan Sponsors) of the Fulcrum Partners website. Recent ACA Guidance Provides Needed Relief for Health and Welfare Plan Sponsors Executive Summary Recent changes relating to the Affordable Care Act (the “ACA”) will impact your company’s health and welfare arrangements: The IRS recently released Notice 2016-4, which extends the due dates for the ACA information reporting forms for health plans. The forms must now be furnished to individuals by March 31, 2016 and filed with the IRS by May 31, 2016 (if not filing electronically) and by June 30, 2016 (if filing electronically). The President signed into law a two-year delay in the application of the “Cadillac” tax, pushing its effective date from January 1, 2018 to January 1, 2020. The President also approved the repeal of an ACA provision that would have required that certain large employers implement automatic enrollment procedures for their health coverage. What You Should Do For sponsors of self-insured health plans subject to the ACA’s information
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March 22, 2016

What’s New for the 2016 Tax Return Season?

Executive Benefits News

2016 Tax Return Season: New Information PONTE VEDRA BEACH, FL– (March 22, 2016) –  This article on your 2016 tax return and tax planning tips for nonqualified deferred compensation plans is reprinted with permission of myNQDC.com, a respected source of information, content, and tools on nonqualified deferred compensation. This article contains a number of  links to additional content available only to members of  myNQDC.com, which offers a free basic individual membership, premium memberships, and corporate licensing. As you work on tax returns involving nonqualified deferred compensation, here’s a quick take on issues to keep in mind.  What’s new for the 2016 tax return season? Here’s a quick take on some new developments to be aware of when your tax return involves nonqualified deferred compensation: For high-income people who participate in NQDC plans, the increased tax rates on ordinary income, capital gains, and dividends, along with the return of phaseouts on personal exemptions and itemized deductions, continue to affect tax strategies and tax-return reporting. These rate hikes took effect during the 2013 tax year and make deferral of income more attractive than ever. The IRS has still not finalized the Section 409A rules on W-2 reporting. Therefore, your company does not need
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