Executive Benefits
Would you like to enhance your ability to attract, retain and reward key employees? We can help you find a better way to compete.
Attract and Retain Key Talent
Executives today expect tangible recognition and appreciation — preferably financially driven — for their efforts that help make your company a success. The answer, however, isn’t just higher pay. Executives need solutions to help them bridge the retirement gap. Through our Executive Benefits program, we help our clients create programs designed to recruit, motivate and retain senior leaders and key personnel.
Keep Employees Content
Bank of Oklahoma and NFP Executive Benefits have decades of experience designing and supporting special benefit plans.
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A DCP is a non qualified benefit plan that enables executives to defer compensation on a pre-tax basis in excess of qualified plan limits. This plan has many of the features and benefits of a qualified 401(k) plan, but without the corresponding reporting, funding and non-discrimination testing requirements. The corporation may also contribute an additional amount and/or match the executive’s contributions. Earnings on the executive and corporate contributions grow on a tax-deferred basis, and the accumulated contributions and any earnings are paid out at a specified date in the future.
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A SERP is an agreement between an employer and one or more of its executives to provide corporate-sponsored supplemental retirement benefits. The plan can be structured as a defined benefit plan or a defined contribution plan.
Defined Benefit Structure: The company promises to pay an executive a specified amount of retirement income for a specified period of time.
Defined Contribution Structure: The company promises to contribute a specified amount for a specified period of time into a retirement account for an executive. At retirement, the accumulated contributions plus any earnings are paid out as retirement income over a specified period of time.
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With an EBP, the company uses compensation bonuses to assist the executives in saving for their own personal financial and retirement goals. The company pays the premiums on a specially designed, executive-owned life insurance policy and treats the premium amount as a compensation bonus to the executive. The premium amount is tax deductible to the corporation and taxable income to the executive. If properly structured, the tax-advantaged cash value accumulation within the policy and the death benefits can provide the employees with significant retirement income and survivor benefits.
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The typical stand-alone group LTD plan usually limits the amount of income protection available to some top executives. A combination of group long-term disability (LTD) and individual disability income insurance (DI) can be a vital part of the solution. When group LTD and individual DI coverage are combined, however, your disability plan can be more than just a group policy. It can be a well-thought-out plan design that delivers a big benefit to your big earners while keeping your costs in check.
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Sponsoring a defined benefit plan in today’s economy comes with substantial challenges: market volatility, uncertain liabilities, shifting regulations, and pressure to reduce funding requirements. Bank of Oklahoma will help you navigate these complexities. We specialize in all facets of defined benefit plans, from funding and accounting analysis to plan design and compliance review. We will help reduce your administrative burden, provide fiduciary support to safeguard your plan, and increase employee awareness of the benefits you provide. We work with you to design a solution to meet your organization’s needs and drive your plan’s success.