The Appropriate Methods to compare various funding solutions both fairly and objectively

By Dan Johnson . Notes on Weighted Scores Methodology In daily life, there are some decisions regarding product choice that are simple and straightforward, for example, when choosing between two products that are essentially the same but have different prices.  But in many important decisions, there are trade-offs necessary between multiple desirable criteria.  One such […]

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Rabbi Trust Services and Fees

By Jeff McCarthy Rabbi Trust services and fees vary widely depending on the service capabilities of the trustee and the nature of the Rabbi’s Trust agreement’s provisions.  In choosing a trust provider and structuring the trust, the plan sponsor will want to balance the costs and benefits of the various arrangements that are available in […]

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Funding Optimization and Guaranteed Issue

One of the greatest advantages of non-qualified deferred compensation (NQDC) plans is the degree of flexibility they offer the plan sponsor. Take plan funding, for example. There is no single required funding approach. Plans may be unfunded, or they may be funded with mutual funds, other taxable investments, or corporate-owned life insurance (COLI). In fact, […]

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Funding Methods: Past, Present and Future

By Dan Johnson Background, Context and Terminology:  Back in the days when most Non-Qualified Benefit Plans (“NQBP”) were Defined Benefit in nature, Informal Funding of the plan with Corporate-Owned Life Insurance (“COLI”) involved projecting the benefit liabilities and then either buying enough COLI to take the cash retirement benefit out of the policies (“Cash Funding”), […]

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