BANKS
In order to compete for talent, banks use supplemental executive retirement plans (SERPs) to attract and retain select employees.
Traditional bank SERP designs have their challenges:
- SERP is a liability/expense to the bank
- Benefit is taxable to the participant
- Participants benefit is subject to banks insolvency or regulatory takeover
- Executives personal net worth and retirement is too heavily concentrated in the bank
- Plan subject to 409(A) and 280(g)
- Liability is often offset by BOLI, which by design is a MEC (Modified Endowment Contract), making it subject to taxes and penalties, limiting the banks ability to access cash value.
- Cost recovery from BOLI death benefit
CREDIT UNIONS
Loan regime split dollar does have its challenges:
- Longevity of plan. The loan isn’t repaid until death, which can be decades after a participant leaves the organization
- Benefit distributions can be denied if organization deems the distribution to jeopardize policy performance. (The policy is securing the loan via a collateral assignment of the policy to the organization)
NON-PROFITS
Loan regime split dollar does have its challenges:
- Longevity of plan. The loan isn’t repaid until death, which can be decades after a participant leaves the organization
- Benefit distributions can be denied if organization deems the distribution to jeopardize policy performance. (The policy is securing the loan via a collateral assignment of the policy to the organization)
Licensee offices
Boston/New England
Washington DC, Annapolis, Baltimore
Washington DC, Annapolis, Baltimore
Washington DC, Annapolis, Baltimore
Washington DC, Annapolis, Baltimore
Washington DC, Annapolis, Baltimore
Philadelphia
Washington DC, Annapolis, Baltimore
Philadelphia
Atlanta
Washington DC, Annapolis, Baltimore
Philadelphia
Tommy Bridges
Managing Director
2827 Averett Dr
Columbus, GA 31906
Cell: 478-747-2037