Non-Qualified Retirement & Executive Compensation Plans
Qualified Plans such as 401k Plans often serve as a foundation that can be built on to improve benefits for certain executives. Gernon, Muth & Associates offers the following supplemental plans for executives:
- Non-Qualified Deferred Compensation 457(f) & 457(b) Plans
- Supplemental Executive Retirement Plans (SERPS)
- Executive and Key Person Life and/or Disability Insurance
- Supplemental Long-Term Disability Plans
- “Carve Out” Executive Long-Term Care Insurance Plans
- Fee-Based Executive Personal Financial Planning
Non-Qualified Deferred Compensation Plans
The statutory IRS deferral limits of 401k plans often limit the necessary funding benefits for executives, physicians, and professionals. A Non-Qualified Plan can supplement an already existing Qualified 401k Plan, thus providing high income earning executives with the necessary funding to create a secure retirement.
Supplemental Executive Retirement Plans
“SERPs” are typically an agreement between a corporation and key executive, whereby the corporation agrees to a defined benefit or defined contribution on behalf of the actively employed executive. Contributions are subject to a vesting schedule and the executive's active employment.
Executive Key Person Life & Disability Insurance
Some business arrangements could leave the business at risk if a key executive or select group of key executives died or became disabled. Insurance can often be a cost-effective way to protect a business by making the business the owner and beneficiary on the life or disability policy insuring the key person(s).
Supplemental Long-Term Disability Plans
Core employer paid Long-Term Disability employee benefit plans often do not provide adequate coverage for high earning executives, physicians, and attorneys. For example, a fairly standard Long-Term Disability Plan of 60% of compensation up to a maximum monthly benefit of $10,000 does not come close to insuring 60% of the comp of a highly compensated employee/owner. Consequently, Gernon, Muth & Associates brokers supplemental disability insurance policies – often on a guarantee issue no medical questions asked basis – to provide high earning executives the coverage they need to protect their families.
“Carve-Out” Executive Long-Term Care Insurance Plans
Carve out Long-Term Care programs allow companies to provide a select group of employees based on title, work tenure, etc. with Long-Term Care Insurance. Gernon, Muth & Associates brokers these products with multiple carriers that are often provided at a group premium discount and simplified medical underwriting. Policies are “portable” allowing the executive to continue their policy through retirement, if desired.
Fee-Based Executive Comprehensive Financial Planning
In partnership with Lincoln Financial Advisors National Financial Planning Department, Gernon, Muth & Associates contracts with businesses and associations to provide financial planning services to their executives, partners, members and directors.
Identical to our Comprehensive Financial Services provided to our “individual” clients each executive will receive personal financial planning services in the form of a financial plan encompassing Estate Planning, Investment Planning, Retirement Planning, Risk Management, and/or Education Planning, as appropriate. Each Planning Beneficiary's financial plan will be summarized in writing and will be delivered in hard copy or electronic format. Each Planning Beneficiary's financial plan will reflect the Planning Beneficiary's current financial circumstances, financial outlook, and personal objectives.