Comprehensive Capabilities

  The foundation of AWP Life Brokerage is the belief that firms are strengthened by the ability to work in tandem as a unified consortium.  Our specializations include insurance concepts and...


Industry Leader

  AWP has proven continual leadership in delivery of benefits solutions for companies of any size as well as we continue to be a leading enterprise in life insurance planning and...


Institutional Relationships

Institutional accounts are integral to our overall distribution plan.  We define institutions as banks, wirehouses, regional broker dealers, and CPA networks. AWP has acquired recognition as a player in the institutional...


Pioneering Captive Insurance

Introduction Despite the fact that the concept of “captive” traces its origins to the beginnings of formalized trade, many people believe captive insurance companies to be a relatively new phenomenon.  Formed...


Premium Financing

Many affluent clients are aware of the benefits that life insurance can provide.  However, clients often harbor concerns that a substantial income tax liability will result from liquidating low basis...


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Executive Benefits

According to the Fifth Annual MetLife “Study of Employee Benefits Trends,” an increasing number of employers are starting to offer executive benefits in efforts to attract and retain key executives.  In 2004, 39 percent versus 49 percent of employers in 2006 reported offering some form of executive benefit.  Supplemental retirement plans rank among the most sought after of executive benefits, along with LTC insurance and individual disability insurance.  By offering a supplemental retirement plan, companies are able to assist their executives in closing the “retirement gap” experienced by many highly compensated employees.

 

There are several advantages to offering an executive benefits plan, including:


Increased ability to recruit, retain, and reward your most valuable employees by providing an important and a necessary benefit.

401(k) repair—Often, highly compensated employees (HCEs) experience limitations in the amount they can contribute to their 401(k) plans due to non-highly compensated employees contributing at lower levels.

Narrowing of the “retirement gap”—Even in cases where HCEs are not confined to lower than maximum allowed contributions to a qualified plan, this maximum is still too low for them to maintain their standard of living at retirement.  Most HCEs in these cases still would not meet the commonly accepted threshold of requiring 80 percent of one’s working salary to maintain pre-retirement lifestyle.

Potential taxation advantages—Large and at times unforeseen taxes due to bonuses can be avoided via plan design and defining the types of compensation that can be deferred into the plan

Plan design—A nonqualified (NQ) plan can be structured to act as a long-term incentive plan and/or a golden handcuff plan for highly valued executives who are important to a firm’s position as an ongoing concern, yet who may have limited or no equity stake in the company.

Continued market downturn will require a higher savings rate to meet retirement goals—An executive benefits plan enables HCEs to save more during the current economic downturn.

 

Corporate boards, executives, and shareholders alike are beginning to rethink the value, security, and optimal execution of executive benefit plans in the reality of market stagnations, higher plan liabilities, more severe security risks, and increasing demand for cost control and for efficiency.  An effective executive benefits plan can provide an important duality – satisfying shareholders’ demands for efficiency and effectiveness while simultaneously offering attractive rewards to talented executives, retention of whom will add value to the company.