Supplemental Executive Retirement Plans (SERP) Using Split Dollar Plans for Community Bank Executives
In a Post-COVID Financial world with low interest rates and volatile market conditions, many existing SERP programs face significant market risk and/or low returns. This situation can add additional financial liability to the employer, and uncertainty to the executive.
Let MBK & Associates, INC. Perform an audit of your existing program to assess your situation and offer strategies which can mitigate risk, improve performance, and maximize benefits to all parties.
If you currently don’t have a plan and are looking to recruit or retain C-Level talent or management, call us to see how a properly designed split dollar plan can help you achieve these goals!
If we could show you an IRS approved Incentive and Retention Plan for your key executives that can compete with Community Bank stock option plans…
Would You be interested?
Working with credit unions around Western New York, we have already established great relationships to develop specialized programs to help ensure your money works for you. See you you can get more out of your life insurance policies, help benefit you and your family, and earn more tax-free income.
What Is It?
An IRS approved Executive Supplemental Retirement Benefit Plan that is unencumbered by FASB liability issues and nrelated requirements under non-qualified benefit programs (IRS section 409a) and meets legal banking requirements. (Regulation O)
Results for the Executive
The Executive recieves an extremely attractive cash retirement benefit for little to no out of pocket cost. Executive also recieves a significant pre and post retirement death benefit.
Results for the Bank:
Bank provides long term incentive and retention tool for key executive talent. Bank books the plan as a corporate asset on balance sheet. Bank will be guaranteed refund at retirement or death, minimizing regulatory issues and simplifying administration.