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 “Series of Limited Scope 409A Audits Underway, from Groom Law Group”
May 06, 2014

Series of Limited Scope 409A Audits Underway, from Groom Law Group

Executive Benefits News

Series of Limited Scope 409A Audits Underway Released May 6, 2014, by Groom Law Group is the following update on 409A audits being launched by the IRS. “The IRS has launched an audit initiative aimed at compliance with the rules for nonqualified deferred compensation plans under Code section 409A. A series of audits of a “limited scope” are underway. The IRS will assess what further steps, if any, to take after the results of these audits are in. While IRS agents have sometimes raised section 409A issues on audits, this appears to be the first systematic IRS initiative to review compliance with the complex regulatory scheme under Code section 409A. We outline below some actions that employers may consider to prepare for a potential audit on section 409A issues.” You can read the full article, including advice regarding actions that employers may consider when preparing for a potential audit on section 409A issues. From Groom Law Group by following this link: Series of Limited Scope 409A Audits Underway.
Read More
May 01, 2014

Advantages to Pre-Tax Deferral of Income in an Uncertain Tax Environment

Human Resources

Did You Get Hammered at Tax Time? Do You Need a New Strategy for Pre-Tax Deferral? Released this month in the April issue of  The Exchange for People, a Human Resources eMagazine, is an article by Chris Nyland and Steve Broadbent, both of Fulcrum Partners LLC.  This article, Advantages to Pre-Tax Deferral of Income in an Uncertain Tax Environment, looks at some of the ways current thinking is being challenged on the topic of income deferral. “Employees who once routinely deferred compensation are now rethinking those habits as they consider updates to their financial plans. Among the concerns is whether it might be better to take income today because of the uncertainty of tax increases in the future. The uncertainty was highlighted in the 2012 “fiscal cliff” negotiations in which the top Federal tax rates were increased and a number of “revenue enhancements” were added, which are nothing more than new taxes under the proverbial sheep’s clothing. This article shows how you should consider recent and future tax rate changes and investment returns when analyzing whether to participate in your company’s nonqualified deferred compensation plan (DCP).”
Read More
April 18, 2014

Fulcrum Partners Wishes You a Happy Spring Holiday

Fulcrum Partners News

“No winter lasts forever; no spring skips its turn.” — Hal Borland
Read More
Featured image for “New Interview with Bruce Brownell: The Gaping Hole in Your Benchmarking Strategy”
April 08, 2014

New Interview with Bruce Brownell: The Gaping Hole in Your Benchmarking Strategy

Human Resources

An interview with Bruce Brownell of Fulcrum Partners appears in the March issue of  PSX: The People Strategy Exchange EMagazine. Brownell’s interview, titled “The Gaping Hole in Your Benchmarking Strategy,” is available in the online issue of the magazine as well as on the Fulcrum Partners website Resources page. Download the full magazine here: PSX: The People Strategy Exchange Download the interview with Bruce Brownell here: The Gaping Hole in Your Benchmarking Strategy Fulcrum Partners is a sponsor of PSX: The People Strategy Exchange which first launched online publication in January of this year. You can receive the magazine by direct email by contacting bruce.brownell@fulcrumpartnersllc.com. Summary: While many Executive Compensation Committees, Human Resources executives, and C-Suite and other upper management personnel may not realize it, there is often a hole in their compensation benchmarking strategy. In most cases, the hole is gaping, awkward and large enough to permit the retirement incomes of top executives to slip through unnoticed. In its March issue, HR eMagazine, PSX: People Strategy Exchange, sat down with Bruce Brownell of Fulcrum Partners LLC to discuss the arguable case for executive benefits benchmarking. As Brownell explains, “Retirement contributions are not being considered as part of Total Rewards. To a Compensation Committee, Total Rewards almost always means cash
Read More
Featured image for “New Article by Stephen Kaufman: Key Watchwords in Long Term Incentive Compensation”
February 28, 2014

New Article by Stephen Kaufman: Key Watchwords in Long Term Incentive Compensation

Human Resources

A new article by Stephen Kaufman of Fulcrum Partners appears in the February issue of  PSX: The People Strategy Exchange EMagazine. Kaufman’s article, “Key Watchwords in Long Term Incentive Compensation: Efficiency, Diversification and Performance,” is available in the online issue of the magazine as well as on the Fulcrum Partners website Resources page. Download the full magazine here: PSX: The People Strategy Exchange Download the article by Stephen Kaufman here: Key Watchwords in Long Term Incentive Compensation: Efficiency, Diversification and Performance Fulcrum Partners is a sponsor of PSX: The People Strategy Exchange which first launched online publication in January of this year. You can receive the magazine by direct email by contacting steve.broadbent@fulcrumpartnersllc.com. Summary: As the U.S. economic recovery gathers steam, executive retention will again be a key issue for Compensation Committees, even in the midst of increasing scrutiny over executive pay. In this environment, a powerful opportunity exists for companies to rethink their philosophies regarding significant portions of their total rewards packages. In so doing, they should have in mind three key watchwords in Long-Term Incentive (LTI) compensation:  Efficiency, Diversification and Performance.
Read More
Featured image for “Special Rules on FICA Taxes for Nonqualified Deferred Compensation Plans”
February 11, 2014

Special Rules on FICA Taxes for Nonqualified Deferred Compensation Plans

Fulcrum Partners News

(February 11, 2014) Ponte Vedra Beach, Florida Executive benefits consulting firm, Fulcrum Partners LLC, is pleased distribute this AALU Washington Report to its clients and friends. This continuing series of articles is intended to provide deep insight into trends, events, and issues that impact the design and operation of nonqualified executive benefit plans. Failure to Follow Special Rules on FICA Taxes for Nonqualified Deferred Compensation Plans Can Lead to an ERISA Claim MARKET TREND: Financial and tax planning considerations have made the use of nonqualified deferred compensation vehicles increasingly popular. While these arrangements generally result in the deferral of income taxation until the time at which the deferred compensation is paid to the plan participant, special rules under the Internal Revenue Code (“Code”) require that FICA taxes (i.e., Social Security and Medicare) be paid at an earlier time and emphasize the importance of proper plan administration. SYNOPSIS: In Davidson v. Henkel, an employer maintained a supplemental retirement plan for the benefit of certain employees under which it promised benefits based on the amount that would be payable to a participant under the employer’s tax-qualified pension plan. The employer did not withhold and pay FICA taxes at the time they were
Read More
Featured image for “Fulcrum Partners Video Raises Questions About Your Retirement Plan”
February 05, 2014

Fulcrum Partners Video Raises Questions About Your Retirement Plan

Fulcrum Partners, a One Digital Company Media Releases

With a new video, Fulcrum Partners Video Raises Questions About Your Retirement Plan PONTE VEDRA BEACH, FL–(Marketwired – Feb 5, 2014) – Recognizing that discussions of executive benefits planning and your retirement plan can feel complex and even tedious, Fulcrum Partners LLC has turned to video animator Ydraw, to bring its message to life in a fresh and energized way. Released online this week, Fulcrum Partners’ new video uses storytelling animation to ask the very serious question, “Do Your Company’s Retirement Plans Really Work?” “Integrated executive compensation as part of a Total Rewards Strategy is not a topic to treat lightly, especially in today’s economy,” says Fulcrum Partners Managing Director Joe Thompson, one of the company founders. “But sometimes, even for professionals in the industry, communicating in a lighter, more upbeat way helps people focus their attention on the real issue.” Thompson explains that many companies do not realize they could be doing a better job attracting, rewarding, and retaining key personnel. At the same time, many executives don’t recognize that all retirement plans are not created equally or that strategically selecting the right benefits plan could make a substantial difference in their retirement, especially for those at the Core
Read More
Featured image for “Fulcrum Partners is Helping Launch a New Human Resources EZine”
January 30, 2014

Fulcrum Partners is Helping Launch a New Human Resources EZine

Human Resources

People Strategy Exchange (PSX) is a new ezine targeting a range of Human Resources issues. Fulcrum Partners LLC is proud to be a founding sponsor of this online human resources publication.  If you are part of the Fulcrum Partners LLC  mailing list, you have already received an email about PSX. That email was sent to you from edie.kingston@grahall.com, an address you will want to add to your save senders or white list. We will be sharing more news about PSX in the coming days. If you have any questions or feedback,  you can respond to anyone on the Fulcrum Partners team or at press@fulcrumpartnersllc.com.  Links to the editorial staff can be found in the magazine. We encourage reader feedback which will help us to improve the magazine. Join the Fulcrum Partners Mailing List If you are not on the Fulcrum Partners LLC email list and would like to be, please contact Steve Broadbent of Fulcrum Partners by emailing  steve.broadbent@fulcrumpartnersllc.com Please include in your subject line the words: Add to mailing list.  You may also want to follow Fulcrum Partners News www.linkedin.com/in/fulcrumpartnersllcnews for more updates on human resources, executive benefits plannings, and other issues of executive compensation.  
Read More
Featured image for “Scott Cahill of Fulcrum Partners Supports Luis Palau Association”
January 07, 2014

Scott Cahill of Fulcrum Partners Supports Luis Palau Association

Fulcrum Partners News

  Scott Cahill of Fulcrum Partners Supports Luis Palau Association January 07, 2014 10:00 ET Scott Cahill of Fulcrum Partners Supports Luis Palau Association PONTE VEDRA BEACH, FL–(Marketwired – Jan 7, 2014) – G. Scott Cahill, a founder and managing director at Fulcrum Partners LLC executive benefits consultancy (http://www.fulcrumpartnersllc.com) has generously become a corporate sponsor of the Luis Palau Association’s Love Ethiopia campaign in East Africa. The global ministry of Luis Palau has shared Christianity for more than 50 years, serving those in need with clothing, food, tutoring and a listening ear in cities around the world. November 17, 2013 updates show that the Love Ethiopia outreach has already included more than 175 events reaching a quarter million people ranging from prisons to a private meeting with the recently appointed President of the Republic of Ethiopia, Mulatu Teshome. Scott Cahill explains, “We love the CityServe projects that the Luis Palau Association organizes around the globe to help the poor and are honored to be one of their sponsors. This year’s project in Addis Ababa, Ethiopia will, hopefully, continue as a positive influence on the country.” The Luis Palau Association began CityServe in Portland, Oregon with a mission to transform cities by
Read More
Featured image for “Fulcrum Partners Managing Directors Wish You Happy Holidays”
December 20, 2013

Fulcrum Partners Managing Directors Wish You Happy Holidays

Fulcrum Partners News

All of us at Fulcrum Partners wish you and your family a happy, safe holiday season. May you enjoy precious time with those you love, moments to reflect on the joys and blessings of the year that is passing, and the unique anticipation found only in looking ahead to all that the coming new year will bring. From the Fulcrum Partners Managing Directors: 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. Scott Cahill Orlando, FL. Bruce Brownell  Ponte Vedra Beach, FL. Joseph Arthur Thompson Ponte Vedra Beach, FL. Craig E. Cayford  Portland, OR. Andrew B. Hart Washington, DC. “Christmas waves a magic wand over this world, and behold, everything is softer and more beautiful. ” ― Norman Vincent Peale
Read More