Deferred Comp - SERP

This plan is designed for:

• C corporations (owners and key employees)
   
• S corporations, limited liability companies (LLCs), or partnerships (key employees only)
   
• Businesses with good continuity in place
   
• Financially stable businesses (profitable, good cash flow, long history)
   
• Owners wanting to benefit one to five key employees
   
• Annual contributions of $10,000 - $150,000

This plan isn't designed for:

• Not-for-profit organizations
   
• Owners of S corporations, LLCs, or partnerships
   
• Larger cases or situations where the employer is looking for greater flexibility in case design and more robust administrative services

Note: All pre- and post-sale materials refer to an employer/employee relationship. If you have an independent contractor client, please call the Business Solutions Hotline at 833-803-8345 to discuss how this plan may work in this situation. 

Benefits and considerations for the employer

• It's a cost-effective tool to attract, retain, and reward key employees.
   
• Employer can pick and choose key employees and control vesting.
   
• Plan generally provides tax-free key person protection to the company.
   
• It provides easy implementation and administration at no cost to you or the employer.
   
• There's a clear legal and regulatory environment: IRC 409A.
   
• Employer receives a tax deduction when the benefit is paid.

Benefits and considerations for the key employee

• The plan design is simple and easy to understand.
   
• Employer contributions to the plan don't increase taxable income.
   
• It provides employees with additional income for retirement.
   
• It provides flexibility with  no age 59 1/2 or age 70 restrictions.
   
• During working years, the plan may provide a tax-free death benefit to the family.

Aggregate Financing for Deferred Comp Flyer (BB12609)
Use this with business clients to lead a discussion about whether aggregate financing is appropriate for their plan.
View PDF (PDF) • Order

• Life insurance products

Before the Sale

Deferred Comp - SERP Plan Sponsor Overview Flyer (BB11092)
Use with employers to explain how DC-SERP works and why it could be advantageous for businesses and their key employees.
View (PDF) • Order

During the Sale

Sample Proposal (BB11100) | Request for Proposal (BB11097)
A customized proposal can be created by the Business and Advanced Solutions Case Design team by using the Request for Proposal below. It will be customized for your client with appropriate cover information, financial model and illustration.
View Proposal (PDF) • View Request for Proposal (DOC)

Financial model: Shows a sample of the financial model and illustration.

• Sample Financial Model - IULA (BB12611)
  View (PDF)
• Sample Financial Model - VUL (BB12611VUL)
  View (PDF)

After the Sale

Deferred Comp - SERP Participant Overview Flyer (BB12274C)
Use with employees to explain how the plan works and the benefits available to them. Customization available to show plan with or without an endorsement split dollar agreement. 
Customize

Sample Board Resolution (BB12165)
For use between employer and board of directors.
View (PDF)

Sample Adoption Agreement (BB11130)
For use between employer and participant(s).
View (DOC)

Sample Plan Document (BB11131)
For use between employer and participant(s).
View (PDF)

Deferred Comp - SERP Enrollment Packet (BB11129)
For use between employer and participants.
View (PDF)

Deferred Comp - SERP Roles and Responsibilities (BB11141)
For use between employer and participants.
View (PDF)

Customer Identity Verification (MM 2580)
For variable life insurance.
View (PDF)

Key materials listed below.

• Business and Advanced Solutions
• Business Market Administration
• Life Sales Support