A blog by Fabrizio D’Uva, Regional Director, BOLI & Non-Qualified Benefit Plans – February 3, 2015 With the new year upon us, it may be time for banks to reconsider BOLI, given the most recent positive trends regarding how it’s growing so impressively. BOLI (Bank-Owned…
…until retirement. Arrangements can include deferred salary and bonuses as well as director fees—including board meeting and retainer fees—allowing greater tax deferred dollars than can be made on an individual basis. Supplemental Executive Retirement Plans (SERP) A Supplemental Executive Retirement Plan (SERP) is an executive…
A blog by Andrew Strock, Regional Director, BOLI & Non-Qualified Benefits Plans, Pentegra Retirement Services – September 13,2016 Bank Owned Life Insurance (BOLI) is still on the rise. According to a recent report released first quarter 2016, BOLI assets reached $157.6 billion as of March…
…maximum design flexibility. WHY OFFER AN EXECUTIVE BENEFIT PLAN? Executive benefit plans are a critical component of any corporate benefits strategy. Executive benefit plans provide flexibility in developing benefit compensation strategies, as they can be used to: Provide replacement income at retirement based on total…
A blog by Kevin Killian, Vice President & Director of BOLI Services, Pentegra Retirement Services – May 12, 2016 Bank-owned life insurance (BOLI) can be a valuable asset for banks of all sizes, including community banks. Offered by most major insurance carriers, BOLI is a…
…when a bank’s non-qualified benefit and bank-owned life insurance (BOLI) administrator and/or service provider changes. The number of U.S. banks having purchased BOLI continues to rise — 62.2% had BOLI policies in 2016, up from 60.5% the year before. The continued growth underscores the importance…
…service provider, uses The Pangburn Group (Pangburn) as its TPA for its BOLI and nonqualified executive benefit plan business. Independently owned and operated, Pangburn services more than 25 percent of the nation’s banks with BOLI. While other firms operating in the BOLI space perform both…
…reported that the number of banks with more than $10 billion in assets holding BOLI increased 9.6 percent, and their BOLI assets increased 4.9 percent to $128.6 billion. The number of BOLI holders, and BOLI asset totals, also increased for banks with $1 billion to…
…proposed regulations related to new reporting rules for certain transfers of life insurance policies, including BOLI. If adopted, those new regulations will clarify the tax reporting requirements for BOLI policies that are transferred as part of a bank merger or acquisition. BOLI policies generally insure…
…tax shelter given BOLI’s status as a tax-free asset, BOLI is also utilized to help offset ever-increasing employee benefit expenses. Unlike many investment security products, General and Hybrid Account BOLI are not mark-to-market assets. Banks earn income from the growth of the BOLI cash value…
A blog by Fabrizio D’Uva, Regional Director, BOLI & Non-Qualified Benefit Plans, and Andrew Strock, Regional Director, BOLI & Non-Qualified Benefits Plans – May 23, 2017 The Federal Reserve’s decision to raise its benchmark interest rate earlier this month –– the third such increase since…
…employees. A SERP is also designed as a deferred compensation agreement between the company and the key executive, with the company agreeing to provide supplemental retirement income to the executive and his family if certain pre-agreed eligibility and vesting conditions are met by the executive….