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 “Choosing a Team for Your Executive Benefits Solutions”
August 11, 2022

Choosing a Team for Your Executive Benefits Solutions

COLI

Defining the scope of services you should expect from your executive benefits solutions consultancy.
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February 10, 2022

Types of Trusts Used for Paying Benefits Under a Nonqualified Deferred Compensation Plan

COLI

Rabbi trusts and Secular trusts are examples of trusts an employer may establish to pay nonqualified deferred compensation benefits.
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Featured image for “NQDC Plans When Corporate Taxes Rise”
May 04, 2021

NQDC Plans When Corporate Taxes Rise

COLI

With a new admin comes review of corporate tax structure. The projected tax increases may change participation in NQDC plans. Is your company prepared?
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March 24, 2021

Driving Stronger Financial Results with ICOLI

COLI

Insurance companies have diversified their overall risk/return profile to increase earnings & have added ICOLI, Insurance Company Owned Life Insurance. #Readmore
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Featured image for “Reportable Policy Sales Ruling and the Tax Implications for COLI and BOLI”
December 11, 2019

Reportable Policy Sales Ruling and the Tax Implications for COLI and BOLI

COLI

On December 4, 2019, the AALU issued an important WRNewsire AALU Washington Report regarding regulations on Reportable Policy Sales (RPS). The AALU update addresses tax implications for company owned life insurance (COLI) and bank owned life insurance (BOLI) in view of the Treasury Department’s final regulations on RPS. What follows here is an overview of the regulations as provided by AALU. At the end of this overview, you will also find, in entirety, “points 6 through 9” of the previously published Washington Report Newswire analysis.
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Featured image for “Looking Out for Key Employees”
May 07, 2019

Looking Out for Key Employees

COLI

Benefits designed for employees also provide advantages for companies Key employees help lead a company and keep it on the right path. So finding and keeping those key employees is a priority. Key employees also want to work for a company that values their hard work – and offers them additional ways to save for the future. A nonqualified deferred compensation plan is a smart solution for companies and their key employees. It’s designed to help top talent save beyond 401(k) plan limitations for retirement and other savings goals, while helping the organization recruit, retain, and reward them. Here’s how it works A deferred comp plan is a type of savings vehicle an organization provides to select key employees. Participants can defer a portion of their annual compensation or bonuses into the plan before taxes. And the organization promises to pay that money to the employees at a future date, plus any earnings or additional contributions the organization may offer. How a company informally finances its plan can help accomplish these goals – whether the company uses corporate owned life insurance or taxable investments, or company cash flow. “The plan allows my employer to show employees that they are fully
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Featured image for “Has Your Company Been Part of a Merger or Acquisition On or After January 1, 2018?”
February 22, 2019

Has Your Company Been Part of a Merger or Acquisition On or After January 1, 2018?

COLI

The Tax Cuts and Jobs Act of 2017 (TCJA) modified the Transfer of Value rules pertaining to Corporate Owned Life Insurance (COLI), Bank Owned Life Insurance (BOLI), Credit Union Owned Life Insurance (CUOLI), and other types of Employer Owned Life Insurances. If your company (or your client’s company) was involved in an acquisition on or after January 1, 2018, you will want to contact your advisors to confirm if any of the Employer Owned Life Insurance may be impacted by the modified Transfer for Value rules Section 101(a)(3)(B). Generally speaking, the modifications resultant from the tax law changes, could result in a portion of future death proceeds being subject to tax for certain insurance policies on former employees of any businesses acquired on or after 1/1/2018. There are multiple arguments to be made here that the status of the current language of the tax code does not reflect what lawmakers intended and that additional guidance and or tax code modifications will inevitably be forthcoming. Nevertheless, as the law presently stands, if it in fact applies to your organization’s situation, then there may be the need to report policy sale under Section 6050Yii, the acquiring company may need to reflect a
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Featured image for “What the Sale of Great-West Life Signals for the Future of Institutional Life Insurance”
January 30, 2019

What the Sale of Great-West Life Signals for the Future of Institutional Life Insurance

COLI

Among the solutions Fulcrum Partners offers organizations for informally funding nonqualified retirement plans is the design of institutionally priced corporate owned life insurance (COLI) and bank owned life insurance (BOLI). Although a high percentage of Fortune 500 companies rely on COLI or BOLI products to tax-efficiently fund liabilities, there are a limited number of large, established insurers in the business of providing institutional life insurance. When significant change occurs related to any one of these carriers, Fulcrum Partners monitors the event closely, apprising our clients and our peers of updates as they become available. On Thursday, January 24, 2019, Great-West Life & Annuity Insurance Company (GWL&A) announced it had reached an agreement to sell through reinsurance, substantially all its individual life insurance and annuity business to Protective Life Insurance Company, the primary subsidiary of Protective Life Corporation (Protective). Protective is a wholly owned U.S. subsidiary of Dai-ichi Life Holdings, Inc. and is headquartered in Birmingham, Alabama. The transaction, which is expected to close in the first half of 2019 subject to regulatory approvals and customary closing conditions, includes transfer of the following categories of business that are marketed under the Great-West Financial brand: Bank owned and corporate owned life insurance
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October 18, 2018

How Can Deferred Compensation Plans Help Keep Companies Strong?

COLI

A nonqualified deferred compensation plan is designed to help top talent save beyond 401(k) plan limitations for retirement and other savings goals, while helping the organization recruit, retain, and reward them. Here’s How Deferred Compensation Plans Work A deferred comp plan is a type of savings vehicle an organization provides to select key employees. Participants can defer a portion of their annual compensation or bonuses into the plan before taxes. And the organization promises to pay that money to the employees at a future date, plus any earnings or additional contributions the organization may offer. How a company informally finances its plan can help accomplish these goals – whether the company uses corporate owned life insurance (COLI) or taxable investments, or company cash flow. Helping key employees save additional dollars for the future with a deferred comp plan is a great way for companies to tie these employees to the organization, while keeping it strong and successful. Read or download these Reports for more information on Deferred Compensation Plans Protect Your Clients by Helping Them Look Out for Their Key Employees Recognize and Motivate Key Employees: Nonqualified Incentive Bonus Plan How Deferred Comp Plans Can Help Pass-Through Businesses Key Employee
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Featured image for “Andrew Hart is a Driving Force for Fulcrum Partners Executive Benefits Consulting”
September 29, 2017

Andrew Hart is a Driving Force for Fulcrum Partners Executive Benefits Consulting

COLI

  FOR IMMEDIATE RELEASE Andrew Hart is a Driving Force for Fulcrum Partners Executive Benefits Consulting PONTE VEDRA BEACH, FL — (Sept 28, 2017) Founded in 2007, Fulcrum Partners LLC is marking a decade of dedicated executive benefit and nonqualified compensation consulting services. With more than $6B of assets currently under management, Fulcrum Partners is utilizing this anniversary milestone as an opportunity to pay tribute to the talented team that has helped the company grow into one of the largest executive benefits advisories in the US. Starting with two locations in Ponte Vedra Beach and Orlando, Florida, today Fulcrum Partners has thirteen nationwide offices. Managing Director Andrew Hart heads Fulcrum Partners Washington D.C. office. He is a dynamic force at Fulcrum Partners, responsible for many of the firm’s largest clients across nearly all industries. Focused throughout his professional career on Corporate Owned Life Insurance (COLI), Bank Owned Life Insurance (BOLI) and related aspects of nonqualified deferred compensation, Andy serves his clients with sound, creative tax-savvy solutions. “Because my own life centers around my family and my family’s security and future,” said Andy, “I understand exactly why these values matter so much to my clients. Through strategic executive benefits planning, I
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