Executive Benefits

 

Executive benefit plans

Executive benefit plans enable you to selectively attract, retain and reward key employees and executives of your business. PensionmarkMeridien designs, implements and administers executive benefit plans that supplement restrictive qualified retirement and group insurance plans. We create executive benefit plans that are cost-efficient and effective.

These plans include:



    Salary Continuation Plans

    Salary Continuation Plan


    Supplemental Executive Retirement Plans (SERP)


      Split Dollar Insurance Plans


      Executive Bonus Plans


      Deferred Compensation Plans


      Executive Group Term Carve Out Plans

      Beyond the 401K

      Our programs are designed to help you meet your goals


      Employee stock options and programs like 401(k) plans are a good start, but they may not meet the financial expectations of the most talented executives. Executive employees want to enjoy a rewarding, worry-free retirement, pay for their children’s college education, and establish sound financial security. They participate in retirement programs to help make these dreams realities. Due to government limitations, executives may not be able to achieve these lifestyle goals through your current benefit programs. We are chosen as trusted corporate advisors because we carefully evaluate current costs and benefits, and explore possibilities for better, more efficient programs that may help executives reach and protect their financial goals.

      Nonqualified Deferred Compensation Plans


      As more and more Americans have become responsible for their own retirement, 401(k) plans have addressed an important need. For many executives, however, the yearly investment limit is far too restrictive to fulfill their needs. Deferring compensation may be a solution to limitations in traditional qualified plans. Non-qualified deferred compensation plans can be designed to mirror familiar features of basic 401(k) plans, but without the cap on the dollar amount saved or contributed. These plans allow deferral of various forms of pay, including base, bonus, commissions, and special incentives. More flexible payout schedules can be arranged as well.
      SUPPLEMENTAL EXECUTIVE RETIREMENT PLANS (SERPS)

      Supplemental Executive Retirement Plans solve retention and motivation problems, helping to retain executives who are much needed for the continuity of your corporation’s success.

      These types of plans are commonly called “non-qualified” because they cannot meet the broad coverage rules that are necessary to secure the special tax treatment afforded to tax-qualified retirement plans.

      Executive Group Carve Out Plans

      Executive Disability Insurance for High Earning Professionals

      In today’s disability insurance market, 60% of income has been the industry standard target income replacement figure. One of the biggest shortfalls group disability programs and event traditional disability insurance carriers have is their limitation on the size of monthly benefits. Obtaining adequate income protection for highly compensated individuals is a challenging process, and it normally takes two to three separate disability insurance policies to accomplish. With the average disability claim length lasting roughly three years, an individual will need to have a sizable savings account if they are not insured at 60% income replacement.* At PensionmarkMeridien, we have decades of experience in providing solutions for high earning executives that have incomes ranging from the high hundred-of-thousands to the multimillions. Whether creating a specialized executive Group Disability contract specifically for your applicable professionals or creating a special individual disability insurance supplemental program, PensionmarkMeridien provides your employees with the benefit amounts and contract provisions to provide piece of mind.


      * Source: US DOL Bureau of Labor Statistics

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      Executive Life Insurance Programs
       

      Your employees appreciate your providing them with a group life insurance plan. However, group life insurance plans typically have death benefit amounts and portability limitations that adversely impact your higher earners. PensionmarkMeridien assists clients in the design of group life insurance programs and executive life insurance programs; by carving out some (or all) of the executives’ coverage in the Group Life plan, potential savings may be achieved in the basic group life program, while delivering higher benefit amounts and policy provisions to satisfy the planning needs your executive population. Further, many companies offer their employees high-value supplemental coverage in the form of permanent life Insurance. Permanent life insurance can provide benefits that are not typically available in group plans, such as true portability, ability to be owned by an irrevocable life insurance trust, level premiums, and tax-deferred cash value accumulation.


       
       

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      Funding Executive Benefit Programs


      Funding executive benefits is often done using company cash, taxable investments, institutionally priced life insurance contracts, or a combination thereof. Often the costs of utilizing and the benefits of utilizing Corporate Owned Life Insurance (COLI) or Bank Owned Life Insurance (BOLI) are misunderstood.

      Corporate Owned Life Insurance

      (COLI)

       

      Are you looking for a way to hedge future benefit obligations? The executive benefits programs you want or need to attract and retain your key employees may make buying corporate owned life insurance (COLI) a smart financial strategy. PensionmarkMeridien is here to help you figure out if COLI is right for your organization. Our services include customized plan design, concierge implementation support, and ongoing relationship management.

      What is COLI? COLI is utilizing life insurance which your company can purchase to insure the lives of key employees. And, why should we consider COLI?
      • Gains on policy cash value are tax-deferred and may, if held until the death, be income-tax-free.
      • Your company gets favorable access to cash values to fund plan distributions through withdrawals to basis and loans.
      • Reallocation within the policy does not trigger taxable gains (like in taxable investments held by a for-profit company).

      Our longstanding and deep relationships with top-rated COLI carriers means you get in-depth analysis of product choices, design, costs and the supporting due diligence needed for the successful implementation of a COLI program.

      Bank Owned Life Insurance

      (BOLI)

       


      Banks need to provide a competitive offering of employee benefits while also managing costs. One way to do that is by offsetting these expenses and/or informally funding executive benefits with a tax-advantaged bank-owned life insurance (BOLI) asset.

      BOLI is a life insurance policy banks can buy to insure the lives of key employees. As the policy's owner and beneficiary, the bank gets unique benefits, including the ability to:
      • Insure the economic loss of a key employee’s premature death
      • Offset the growing costs of employee health and welfare ERISA plans
      • Provide cost recovery for pre- and post-retirement executive compensation and benefit plans
      • Hedge against the changing value of a liability obligation

      BOLI offers:
      • An asset value that accumulates on a tax-deferred basis, treating the change in value as "other non-interest income"
      • Income-tax-free death proceeds for recovering the present and long-term costs of employee benefits and compensation plans
      • A more efficient method of financing employee benefit and compensation plans than alternative

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