Our Step-By-Step Process
Evaluating your organization’s unique needs.
Delivering effective, customized solutions.

STEP 1: Discussion Of Objectives And Design Issues
- Background information on deferral plans:
- What is most common
- Legal issues
- Discussion of current objectives:
- From the Company’s perspective
- From the executive’s perspective
- Executive interviews
- Discussion of preliminary design issues:
- Index plans versus variable account plans
- Payout options:
- Retirement
- In-Service Distribution
- Participant security
- Determine eligible executives
- Impact on other benefit plans
STEP 2: Preliminary Design Of Plan
- Evaluation of current agreements
- Initial plan design based on discussion in Step 1
- Investment choice analysis:
- Determine fund classes appropriate for Deferred Compensation Plan (DCP)
- Analysis of funds:
- Fund histories
- Investment risk
- Compare to current 401(k) funds
- Analysis of funds:
- Determine fund classes appropriate for Deferred Compensation Plan (DCP)
- Financial impact from deferral plan (unfunded):
- Cash Flow
- P&L Impact
- Balance Sheet
STEP 3: Funding Analysis
- Review of funding approaches:
- Tax-free versus taxable investments
- Cost efficiency of funding approaches using:
- A variety of crediting rates for the deferred compensation plan
- A variety of investment rates of return
- Corporate tax bracket
- Discount rates
- Financial impact:
- Cash flow, net present value, internal rate of return
- P&L impact
- Balance sheet
STEP 4 - Benefit Security Issues
- What level of protection is desired?
- Change in Control
- Change of Heart
- Bankruptcy
- Review of Security Devices:
- Rabbi Trusts
- Rabbicular Trusts
- “Haircut” Provisions
- Secured Trust
- Split-Dollar
- Indemnity Insurance
STEP 5: Develop And Process Recommendations
- Final report
- Prepare Board overview
- Board presentation (if desired)
STEP 6: Implementation
- Specimen documents
- Enrollment materials:
- Plan Summary
- Question and Answer Section
- Directions for Enrollment
- Election Forms
- Beneficiary Designation
- Spousal Consent
- Notice of Non-Participation
- Plan Document
- Prospectus for Benchmark Funds
- Sample benefit statements
- Enrollment meetings:
- Onsite
- Tele-conference
- Personal phone calls
STEP 7: Plan Administration
- Account Teams:
- Account Manager
- Benefit Analyst
- Financial Analyst
- Participant Benefit Statement
- Account History
- Investment Changes
- Company Financial Information
- Participant Questions
- Plan Changes
- Monitor legislative and regulatory issues affecting plan
Our Focus
Cash Compensation
- Base salary
- Annual bonus
- Annual incentive bonuses
- Long-term incentives
- Pay for Performance
Qualified Plans
- Defined benefit pension
- 401(k)
- ESOP profit sharing
Fulcrum Partners Expertise
Nonqualified Plans
- SERPs
- Deferred compensation plans
- Long-term incentive plans
- Supplemental disability
- Long-term care
- Life insurance
Equity Plans
- Stock options
- Restricted stock
- Phantom stock
- Stock appreciation rights
Group Benefit Plans
- Qualified group benefits
- Survivor income
- Employment agreements
- Change in control