Defusing a balance sheet time bomb: financing and securing nonqualified plan benefits
Article Abstract:
A case study is presented on the financial management techniques utilized by a hypothetical company in securing the integrity and value of its nonqualified benefits plan. The company has treated its contributions to the nonqualified plan as an employee investment, either in the company stock or on a fixed rate based on pre-tax US Treasury yield. The corporation's treasury department is then tasked to assure that the trust established for the plan maintains enough assets to pay benefits. This technique ensured that employee benefits are value-laden and have no significant effect on the company's earnings per share value.
Publication Name: Journal of Compensation and Benefits
Subject: Insurance
ISSN: 0893-780X
Year: 1997
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Administrative issues take on paramount importance for nonqualified plans
Article Abstract:
Nonqualified retirement plans have become increasingly critical to executives because they furnish a significant portion of their retirement income. They are also very important to companies as they are effective tools for attracting, retaining and motivating key executives. However, such plans must be well designed and administered, and companies must recognize a host of complicated issues inherent in the administration of these plans.
Publication Name: Journal of Compensation and Benefits
Subject: Insurance
ISSN: 0893-780X
Year: 1999
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Applying new technology to effectively administer nonqualified plans
Article Abstract:
The Todd Organization is noted for its use of technology to facilitate its servicing of the complex needs of clients in the area of nonqualified benefit plan development and implementation. These plans have become more complicated as firms in response to the ever growing complexity of taxation laws. Todd uses the concept of standardization to enable the use of its systems in many situations.
Publication Name: Journal of Compensation and Benefits
Subject: Insurance
ISSN: 0893-780X
Year: 1997
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