We provide a unique service model to support our clients with the acquisition of BOLI. Our model is built to provide guidance, education and plan design and to ensure your complete understanding of a BOLI transaction. We are not agents for any specific insurance company or investment manager. Instead, we consult with financial institutions to help them decide whether BOLI is appropriate and if it is, to help them implement, monitor and maintain the asset. We are one of the major national BOLI vendors in a limited distribution channel with access to major insurance companies’ policies. Insurance companies continue to annually appoint RBA to place their products. These appointments are due to our experience and ability to provide administrative services and regulatory support for these programs on an ongoing basis. We will help you answer the following questions:
Are your peers purchasing BOLI?
Can your bank purchase BOLI?
What makes a successful BOLI program?
How do we guide you through the process of a separate account BOLI transaction?
What do we do for you after the transaction?
How much do we charge?
We help you understand insurance terminology and we present complex topics in language that is understandable. We believe that our processes and our reports are among the clearest and easiest to understand in the industry and that:
Our services are priced fairly, are transparent and are fully disclosed
Our services enable your staff to focus on what is important, not deciphering insurance terms
Our services enable you to quantify the risks
Our services are on-going; your transaction is not a one time event
RBA can provide a detail analysis of a COLI transaction, outlining the financial impact and expected returns. We monitor the top rated COLI carriers and can provide an in-depth analysis of products choices, design, costs, and the supporting due diligence to assist a company in the successful implementation and administration of a COLI program. We will also negotiate the underwriting considerations.
We work with all major COLI vendors and provide a unique approach to analyzing and providing you the ability to choose the best COLI strategy for your situation.
What should I know about COLI?
If designed properly, COLI will have a favorable impact on the employer’s financial statements through the income generated from the cash value.
Assets held in COLI are accounted for under FASB Technical Bulletin 85-4 and the full market value of plan assets and any growth thereon passes through the company’s income statement. When combined with the nonqualified plan liability increases, the combination is neutral or favorable for the company’s earnings per share calculations.
GAAP accounting does not permit the employer to recognize COLI death benefits on the financial statement until a death occurs. The present value of future death benefits should, however, be recognized as an economic gain.
The life insurance death benefit is payable to the employer. However, using an endorsement split dollar arrangement, a portion of that death benefit can be shared with the executive’s family.
In order to maximize cash value growth, a COLI purchase is counter intuitive. The general public wants to purchase as much insurance as possible per $1 of premium paid. An employer will want to purchase the lowest amount of insurance per $1 of premium paid.
The ability to attract, retain and reward executive talent is a critical component in a compensation package. The requirements associated with nonqualified deferred compensation plans have become more complex with the introduction of Section 409A. RBA has extensive experience with the design, implementation, and administration of executive nonqualified deferred compensation plans. We have a nationwide client base, and we administer all of the plans that we design. We utilize a sophisticated administrative software package designed to address the unique needs and intricate design features associated with nonqualified deferred compensation plans. We provide enrollment, education service, online enrollment and web based support for participants and plan sponsors.
We provide a full array of services for the following programs:
Providing competitive benefits to attract and recruit Executives has never been more important than it is today. Increasingly, companies are recognizing the need and cost effectiveness of providing supplemental benefits to their executive team. Most employers provide Group Long Term Disability (GLTD) insurance to their employees. GLTD typically provides a taxable benefit equal to 60% of the employee’s pre-disability income with a monthly cap of $5,000 or $10,000/month. This plan design is appropriate for most rank and file employees, but falls short for the executive class. Executive Disability Insurance (EDI) coverage provides an added layer of protection to fill the gap left by most GLTD plans. Executive Disability is typically provided through an individual contract, with premium and underwriting concessions. These plans can be paid for by the employer or offered as a voluntary plan.
Our Role
Our role in the process is to analyze the needs and objectives of a company relative to the existing disability protection solution, identify any problem areas, recommend optimal solutions, and provide detailed decision support. If changes are made, we facilitate that entire effort and employ a comprehensive implementation process and timeline to ensure a quality result. We provide customized communication materials and are ultimately responsible for the successful enrollment of the Executive Disability plan.
Companies operate in a highly competitive labor market. Attracting, rewarding, and retaining key executives are important components of a comprehensive benefits strategy. Companies that implement nonqualified deferred compensation plans, where the participants have investment direction, need to make sure that the investment options they make available are suitable ones, and that they meet certain, minimum standards. While nonqualified plan sponsors are not held to the same fiduciary standards as qualified plan sponsors, many choose to have some due diligence oversight of the investments offered.
Reasons to monitor
Offer quality investment options
Offer suitable investment diversification options for participants
Services Offered
Develop Investment Policy Statement (IPS)
Investment screening and suggested fund lineup
Annual review of fund lineup, based on criteria outlined in IPS
Ongoing monitoring of investment options
Suggested investment alternatives for funds not meeting IPS criteria
Suggested Asset Allocation models to be used by the plan participants to help them make investment decisions
RBA will assist with your pre-purchase analysis, determining appropriate premiums and insurable interest considerations within regulatory guidelines. Following your purchase, RBA will produce a regulatory Compliance Manual to thoroughly document your pre-purchase due diligence, business purpose, and risk assessment. RBA monitors the credit ratings of the carriers and notifies the client if any adverse action is taken by the major rating agencies. We also utilize third party firms such as Dowling Risk Analysis and provide reports. Additionally, RBA monitors the performance of the insurance contracts through its direct relationship with the carriers and on-going contact with their respective product managers.
Comprehensive Administration
RBA and NFP have invested a substantial amount of capital into our administrative systems both proprietary and third party provided. Budgeted annual improvements and the backing of a billion dollar company ensure that we will continue to improve and modify our systems to meet the needs of our clients for years to come. This shows our commitment to “investing in the operational infrastructure necessary to support BOLI” as stated in the new Interagency Statement. RBA’s on-going administrative services related to your BOLI include: providing journal entries, notification of policy reset rates, annual re-calculation of regulatory concentrations, updating carrier financial information, quarterly Social Security sweeps, and claims processing.
Our administration team focuses solely on executive benefit plan administration and customer service. With significant experience in executive benefits administration, our team offers clients an extensive level of knowledge related to Net Asset Value (NAV) based payroll plans.
Each client is assigned to one of our administrative teams, headed by a Senior Plan Administrator. Within that team each client is assigned a lead plan administrator. Your primary contact is your lead administrator, but the overall team works to support the administration of all plans assigned to them.
Systems
RBA utilizes a proprietary software administration system that is capable of administering complex nonqualified deferred compensation plans. Each plan’s specifications, rules, contribution formulas, as well as participant deferral and investment selections are stored in the system. The database tracks individual transactions based on a combination of the contribution source, account (distribution date), investment selection and vesting attributes. Contribution processing, handled as frequently as necessary based on your payroll schedule, converts dollar amounts into share values allowing for daily valuation of participant accounts. In addition, our system tracks each account established by a participant by elected date and method (lump sum or installments) of distribution. Participants may also elect a separate investment allocation for each account established.
Processes and Experience
Through our extensive experience with the administration of nonqualified, payroll based deferred compensation arrangements, we understand that data flow and communication between all related parties is of the utmost importance in the smooth administration of a benefit plan. To this end, we have developed and documented a comprehensive series of administrative procedures.
Plan sponsors have become increasingly aware of their fiduciary responsibilities. Under ERISA, the specific standard of conduct which a fiduciary is subject to is that of a “prudent expert”. If fiduciaries do not have the expertise or the access to data needed to perform their duties, they must rely on third party experts to assist them.
RBA can help. As your Plan Advisor, you can depend on us to provide you with objective and unbiased guidance and solutions. We will partner with you every step of the way to:
• Educate and empower the decision makers into making the most informed decisions for your plan
• Drive positive outcomes that will maximize the value of your plan
• Assist you in creating the strategic framework essential to prudent decision-making and fulfilling your role as a plan fiduciary.
• Help your employees achieve a higher level of retirement security
OUR SERVICES
Investment Due Diligence: We will prepare and provide a customized semi-annual Investment Review which will provide a thorough analysis and benchmarking of your Plan’s options in terms of risk, return, expense, style and strategy.
Vendor Management: We will assist you in meeting this obligation by providing a wealth of benchmarking information that will allow you to evaluate your Provider’s effectiveness.
Fee Analysis and Revenue Disclosure: We will identify your plan’s total expenses, provide you with the plan’s Revenue Disclosure (the means by which we can determine both direct and indirect costs) and benchmark your plan’s fees against industry indices.
Fee and Service Negotiation: We have the knowledge and the credibility to negotiate on your behalf.
Participant Usage Analysis: Through the analysis and benchmarking of the participants’ usage of the plan’s investment options, we will work with you to structure the most optimal investment menu, that is, one that is “prudent and suitable” for employees to use effectively in accumulating retirement benefits.
Employee Communication and Education: We will help structure and manage a communication campaign that will educate and empower your employees while creating a high level of visibility for the Plan. And, to ensure its effectiveness, we will monitor and evaluate results on an ongoing basis.
Plan Design and Compliance: We will keep you informed and provide input on design and/or operational changes that you may wish to consider.
Provider Search (RFP) Process: Our Search Process is a thorough, in-depth investigation and analysis of the information most relevant to your plan and objectives.
RBA strives to deliver maximum value by staying focused on client needs and building enduring client partnerships. We have a long history of acting solely in the best interests of our client-partners. Our commitment to integrity and client advocacy combined with a business model that emphasizes strategic planning, analytics and technical expertise, pays off for employers in the form of innovative plan designs, cost savings and consistently superior service. And, our unique organizational structure ensures that every person who works on your plan is part of a dedicated team that has an enduring relationship with you and your staff and a clear understanding of your organization and its objectives.
Securities and Investment Advisory Services offered through NFP Securities, Inc. a Broker/Dealer, Member FINRA/SIPC a Federally Registered Investment Advisor. Charon Planning dba Renaissance Benefit Advisors is an affiliate of NFP Securities, Inc and a subsidiary of National Financial Partners Corp., the parent company of NFP Securities, Inc.
This site is published for residents of the United States only. Registered representatives and investment advisor representatives of NFP Securities, Inc. may only conduct business with residents of the states and jurisdictions in which they are properly registered. Therefore, a response to a request for information may be delayed. Not all of the products and services referenced on this site are available in every state and through every representative or advisor listed. For additional information, please contact the NFP Securities, Inc. Compliance Department at 512-697-6429.
Renaissance Benefit Advisors is a subsidiary of National Financial Partners Corp. ("NFP"), a financial services network that includes over 175 owned firms and more than 320 member firms engaging in lines of business that include corporate and executive benefits. In consideration of Renaissance Benefit Advisor's placement of an employee benefits program with an insurance company or third party administrator, we are compensated for services provided to clients through fees paid by the client and/or standard commissions by those insurers and administrators. Additional commission may be earned by Renaissance Benefit Advisors based on persistency and volume levels. Additional information is available upon request.
