Fulcrum Partners LLC

Our Step-by-Step Process

Evaluating your organization’s unique needs.

Delivering effective, customized solutions.

Objectives and Design Issues

STEP 1:
Discussion Of Objectives And Design Issues

  • Background information on deferral plans:
    • What is most common
    • Legal issues
  • Discussion of current objectives:
    • From the Company’s perspective
    • From the executive’s perspective
    • Executive interviews
  • Discussion of preliminary design issues:
    • Index plans versus variable account plans
    • Payout options:
      • Retirement
      • In-Service Distribution
    • Participant security
  • Determine eligible executives
  • Impact on other benefit plans

STEP 2:
Preliminary Design Of Plan

  • Evaluation of current agreements
  • Initial plan design based on discussion in Step 1
  • Investment choice analysis:
    • Determine fund classes appropriate for Deferred Compensation Plan (DCP)
      • Analysis of funds:
        • Fund histories
        • Investment risk
      • Compare to current 401(k) funds
  • Financial impact from deferral plan (unfunded):
    • Cash Flow
    • P&L Impact
    • Balance Sheet

Preliminary Plan Design

Funding Analysis

STEP 3:
Funding Analysis

  • Review of funding approaches:
    • Tax-free versus taxable investments
  • Cost efficiency of funding approaches using:
    • A variety of crediting rates for the deferred compensation plan
    • A variety of investment rates of return
    • Corporate tax bracket
    • Discount rates
  • Financial impact:
    • Cash flow, net present value, internal rate of return
    • P&L impact
    • Balance sheet

STEP 4 – Benefit Security Issues

  • What level of protection is desired?
    • Change in Control
    • Change of Heart
    • Bankruptcy
  • Review of Security Devices:
    • Rabbi Trusts
    • Rabbicular Trusts
    • “Haircut” Provisions
    • Secured Trust
    • Split-Dollar
    • Indemnity Insurance

Security Issues

Recommendations

STEP 5:
Develop And Process Recommendations

  • Final report
  • Prepare Board overview
  • Board presentation (if desired)

STEP 6:
Implementation

  • Specimen documents
  • Enrollment materials:
    • Plan Summary
    • Question and Answer Section
    • Directions for Enrollment
    • Election Forms
    • Beneficiary Designation
    • Spousal Consent
    • Notice of Non-Participation
    • Plan Document
    • Prospectus for Benchmark Funds
    • Sample benefit statements
  • Enrollment meetings:
    • Onsite
    • Tele-conference
    • Personal phone calls

Implementation

Administration

STEP 7:
Plan Administration

  • Account Teams:
    • Account Manager
    • Benefit Analyst
    • Financial Analyst
  • Participant Benefit Statement
  • Account History
  • Investment Changes
  • Company Financial Information
  • Participant Questions
  • Plan Changes
  • Monitor legislative and regulatory issues affecting plan

Our Focus


Fulcrum Partners Expertise


Cash Compensation

  • Base salary
  • Annual bonus
  • Annual incentive bonuses
  • Long-term incentives
  • Pay for Performance

Qualified Plans

  • Defined benefit pension
  • 401(k)
  • ESOP profit sharing

Fulcrum Partners Expertise

Nonqualified Plans

  • SERPs
  • Deferred compensation plans
  • Long-term incentive plans
  • Supplemental disability
  • Long-term care
  • Life insurance

Equity Plans

  • Stock options
  • Restricted stock
  • Phantom stock
  • Stock appreciation rights

Group Benefit Plans

  • Qualified group benefits
  • Survivor income
  • Employment agreements
  • Change in control

Learn more about the difference we make for executives and organizations.

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