Non-qualified benefits consulting involves providing guidance and expertise to employers and individuals regarding the design, implementation, and administration of non-qualified benefit plans. Non-qualified benefits are retirement or executive compensation plans that do not meet the specific requirements of qualified plans set by the Internal Revenue Code (IRC).
Here are some of the key aspects of non-qualified benefits consulting:
NFC and its partners work with employers to design customized plans that meet the unique needs and objectives of the organization and its key employees. We’ll consider factors such as compensation structures, retirement goals, tax implications, and retention strategies to develop a plan that aligns with the employer's goals and provides attractive benefits to participants.
Non-qualified benefit plans are subject to a complex set of rules and regulations. We’ll ensure that the plans adhere to applicable tax laws, ERISA (Employee Retirement Income Security Act) requirements, and other relevant regulations. We’ll also help employers navigate compliance issues and stay updated on any regulatory changes that may affect the plans.
Non-qualified benefit plans are often used as a tool for executive compensation and retention. NFC and its partners assist employers in developing strategies to attract and retain key executives through non-qualified benefits. This may involve structuring bonus deferral plans, supplemental executive retirement plans (SERPs), restricted stock units, phantom stock plans, or other compensation arrangements tailored to the unique needs of executives.
Non-qualified benefit plans may involve investments or funding mechanisms to grow the deferred compensation over time. NFC will provide guidance on investment options and strategies to optimize the growth of the plan assets while managing risk. They consider factors such as the risk tolerance of participants, investment time horizon, and plan objectives to recommend appropriate investment vehicles and allocation strategies.
Effective communication and education are crucial in non-qualified benefits plans to ensure participants understand the plan features, tax implications, vesting schedules, and payout options. Consultants help employers develop communication strategies and educational materials to ensure participants make informed decisions and fully understand the benefits provided by the plan.
Non-qualified benefits consulting includes assistance with plan administration and compliance reporting. NFC and its partners help employers establish administrative processes, manage participant records, calculate and process benefit payments, and ensure compliance with reporting and disclosure requirements. We may also assist with the necessary documentation, such as plan documents, participant agreements, and summary plan descriptions.
Non-qualified benefit plans involve certain risks, such as changes in tax laws, regulatory requirements, or market conditions. NFC will conduct regular reviews of the plan's performance, funding adequacy, and compliance status. We’ll also help employers identify and mitigate risks, adjust plan provisions when necessary, and stay updated on industry best practices.
Non-qualified benefits consulting aims to provide employers with comprehensive guidance in implementing and managing non-qualified benefit plans to attract and retain key employees, provide supplemental retirement income, and align with the employer's compensation and talent management strategies. By addressing compliance, design, investment, and communication aspects, consultants play a critical role in ensuring the successful implementation and administration of non-qualified benefits plans.
The NFC team is ready to serve you and your organization. If you would like to speak to a consultant or learn more about our service please Schedule a Consultation below: