Executive Compensation Plans

Non-Qualified Supplemental Income Strategy with Full Cost Recovery:

Our Split Dollar Loan Regime provides a powerful and flexible Executive Benefit that is designed to attract, retain, and reward Key Employees by “splitting” the main components of a life insurance policy: the premium, the death benefit, and the cash value.

The executive owns the life insurance policy allowing the executive access to the unique advantages offered through life insurance and the employer’s interest in the policy is limited to the premiums lent.

• After-tax supplemental retirement income potential to enhance taxable income from Pension and other Qualified accounts. Can be used to delay Tier 2 pension until full retirement age or retain death benefit for estate planning.
• Flexibility in choosing who is covered and how each policy is designed (premium, benefit term, cost recovery and other added features I.e., Long-Term Care, S&P Index Participation, Enhanced Accelerated Death Benefit while alive, etc.
• Not a payroll expense since premium is a loan. Employer’s interest is an Asset on the Balance Sheet.
• Pension liability reduction potential on Tier 1 Pensions by leveraging a generous benefit allowing more control over Final Average Salaries (FAS).
• Full cost recovery for employer with executive retirement, employment separation, or premature death.
• Premiums may be paid annually or in advance for aa discount. The cost recovery of a parting executive may be used to fund the replacing executive’s policy with a lump sum in advance.