Executive Benefits

Executive Benefit Restoration

Executive benefit replacement helps fill the retirement savings gap that results from:

Governmental restrictions on tax-deferred saving through a qualified plan such as a traditional 401(k) plan.
The IRS limits placed on Social Security benefits.
Exclusion of Total Rewards in establishing a highly compensated employee’s life and disability benefits.

401(k) restoration is governed by IRS Section 409A, which covers most forms of nonqualified deferred compensation. Offering a nonqualified plan to highly compensated executives enables them to save, tax- deferred, up to 100% of their total compensation, which is salary plus all bonuses and rewards.

Simply put, the limits on qualified plan savings, paired with the limits on Social Security benefits, means that the more your earnings increase, the less (by percentage) you can save tax-deferred for retirement. This unintended but existing form of reverse discrimination can leave high-wage earners facing a substantial deficit in their retirement benefits.

And although you theoretically have a lifetime to offset the retirement savings gap you face, the disability insurance shortfall can become an unfortunate reality in anyone’s life at any moment.

Your FinSec Life team can help you and your organization build an affordable, customized executive benefit replacement strategy.

Deferred Compensation

Nonqualified deferred compensation plans, also known as NQDC plans or DC plans, help highly compensated executives (HCEs) save tax-deferred beyond the limits of qualified plans.

For Organizations as the Plan Sponsor

Deferred compensation can be a powerful tool for recruiting, rewarding, and retaining talented executives and key employees.
Companies can choose to make discretionary or incentive-based contributions.
Accounting protocols are simple and straightforward, and government disclosure requirements are limited.
Offering a nonqualified plan can help alleviate qualified plan nondiscrimination test failure, positioning the organization to better support the retirement readiness of all its employees.

For Executives as Plan Participants

Plan participants have options for withdrawing savings before they reach retirement age.
Both savings and earnings through a nonqualified plan are tax-deferred during the period that is likely the executive’s peak earning years, potentially creating a significant tax saving at the time of
withdrawal.
Flexible distribution options (the timing and form of payouts) enable better long-term tax planning.

Deferred compensation plans are efficient and typically appeal to the organization and the participating executives. Companies guided by knowledgeable executive benefits consultants should explore the variety of options available for structuring and funding this valued executive benefit.

Long-Term Incentive

A long term incentive plan (LTIP) is a deferred compensation strategy that can be highly beneficial to both the employer and the executive.

The plan may be tied to the price of company stock shares, to the value of the company, or structured around other targeted performance metrics or goals.

Vesting of the reward can be on a graduated schedule, allowing ownership of the award to be transferred to the employee incrementally. Or, it can be structured as cliff vesting, providing no executive access to the benefit, perhaps for several years, and then full access at a pre-established time.

A long-term incentive plan can stabilize executive leadership teams, as executives who leave a company before their long-term incentive has fully vested may forfeit the not-yet-vested portion of the reward.

Other strategies can be built into the LTIP, such as restricted covenants, non-compete or non- disparagement clauses, or a confidentiality clause, further enhancing the executive retention value of the plan for the organization.

Supplemental Executive Retirement Plans (SERPs)

Supplemental Executive Retirement Plans or SERPs can provide an effective strategy to help organizations reward and retain key talent.

SERPs position valued executives to save tax-deferred beyond the regulatory limits imposed on qualified plans. Because Supplemental Executive Retirement Plans can be tied to a vesting schedule, they can help inspire executive loyalty.

Flexible in design, SERPs can be structured as a defined benefit plan, a defined contribution plan, or other creative plan design customized by FinSec Life to serve your company’s objectives and the retirement goals of your selected plan participants.

Physician Benefit Restoration

Your medical career requires an intense investment of time, energy, and resources.

With education and professional development, the demands start while you are still in school and continue for as long as you are a practicing physician. And each phase of your career brings new responsibilities and considerations.

At FinSec Life, we strive to serve the very specific needs of physicians.

We recognize how little time physicians may have to address their own financial wellness, insurance, and retirement planning.

FinSec Life is committed to helping physicians like you achieve personal goals…in every stage of life.

Supporting the unique needs of physicians.
Optimizing tax-deferred savings opportunities for doctors.
Serving the needs of physicians so that they are free to focus on serving the needs of others.

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(321) 800-3901