2014 MGA PREMIER PARTNERS Program

Transcription

1 2014 MGA PREMIER PARTNERS Program For agent or broker use only. Not for use with the public

2 MGA Premier Partners Program The PREMIER PARTNERS Program recognizes the best of our best our top producers and managers. The benefits and recognition Partners receive are our thanks for entrusting us with so much of their business, and represent our promise to provide the tools, support and service needed to be their partner of choice. This brochure gives an overview of the MGA PREMIER PARTNERS benefits. Additional details can be found in the PREMIER PARTNERS section of

3 MGA PREMIER PARTNERS qualification requirements Partner status for 2014 is based on Net PAP-R from January 1 through December 31, A Partner is eligible for benefits beginning in Membership levels Personal Producers qualify for one of five membership levels based on their personal production. Personal Producer Bronze $105,000 Silver $165,000 Gold $330,000 Platinum $660,000 Platinum Plus $1,320,000 Net PAP-R (based on 12/31/13 total) For 2015, Net PAP-R requirements for Personal Producers will remain the same. Managers qualify for one of four membership levels based on the production of producers directly within their management hierarchy. The four levels are Silver, Gold, Platinum and Platinum Plus. Calculating Net PAP-R Life insurance Category Net PAP-R equals Fixed life insurance Variable universal life insurance* Proprietary Proprietary and nonproprietary products sold through Lincoln Financial Securities (LFS) 100% of paid annualized target premium plus 5% of paid excess premium 100% of paid annualized target premium plus 5% of paid excess premium Fixed annuities Proprietary 5% of paid premium Lincoln Single and flexible 15% of total planned MoneyGuard premium premium Exclusions: group, variable annuities, mutual funds *Proprietary individual and survivorship variable life sold through a nonaffiliated broker-dealer can be used to qualify for PREMIER PARTNERS benefits that are not subject to the noncash rules. Under certain circumstances, the producer may have to obtain permission from their broker-dealer to receive benefits, and compensation may be paid through the broker-dealer.

4 MGA Premier Partners qualification requirements, cont d. Pinnacle Group Producers and managers who have achieved PREMIER PARTNERS status at the Silver level or higher for a total of 10 years or more will earn Pinnacle Group membership. Pinnacle qualifiers receive a special blazer bearing the Pinnacle emblem, to be awarded at the next convention or summit for which they qualify and attend, and a press release (upon request) for publication in their local newspaper. Pinnacle Group members will also be eligible to participate in the Deferred Compensation Program. Pinnacle membership is permanent regardless of future Partner status. Sustaining Status Partners who meet PREMIER PARTNERS production requirements at the Silver level or higher for four consecutive years receive first-time Sustaining Status. Sustaining Partners receive additional program benefits and recognition as thanks for their continued loyalty. Sustaining Partners who miss one year of PREMIER PARTNERS qualification at the Silver level or higher may have their Sustaining Status reinstated if they requalify the following year at the Silver level or higher. Senior Agent Status Sustaining Partners who have reached age 60 and have been contracted with Lincoln for at least 10 years can qualify at the Silver level based on a reduced Net PAP-R. Qualification requirements for the Silver level are reduced by 10% beginning at age 60 and are reduced by 5% increments each year thereafter, capped at 30% for Partners age 65 and older. See notes on back cover

5 MGA PREMIER PARTNERS benefits Stock Options 1 Lincoln National Corporation Stock Options are awarded to Partners qualifying at Gold, Platinum or Platinum Plus levels, and to Silver level Partners who have qualified at least once before. Options generally vest over a three-year period based on the Partner requalifying for the program at the Silver level or higher. PREMIER PARTNERS Stock Options are classified as noncash benefits by FINRA. Business written in New York state does not count toward qualification for Stock Options. Granting of the annual Stock Option program is based on Lincoln Financial Group s previous year s sales and operating results, and is subject to approval by the Compensation Committee of the Lincoln National Corporation Board of Directors or the committee s delegate. The company always reserves the right to amend, terminate or suspend the Stock Option program at any time with respect to new grants and at its exclusive discretion. Sustaining Partners receive additional Stock Options that vest immediately. 1 Corporate discounts 2 Lincoln Financial has negotiated corporate discounts with a number of vendors. Discounted items include wireless phone service, clothing, shipping rates, office supplies and more. Corporate discounts are third-party programs with the suppliers; therefore, terms and availability are subject to change at any time and without prior notification. Industry dues reimbursement 1,3 Sustaining Partners who are members of industry organizations and list Lincoln Financial Group as their primary company affiliation may be eligible for dues subsidy reimbursement. The dues subsidy reimbursement will be included in the Partner s current year income for tax purposes. Eligible organizations include: MDRT, NAIFA, SFSP, AALU, NAILBA, Forum 400, FPA, and GAMA. See notes on back cover

6 Executive Service Center The Executive Service Center gives Partners one-stop access to a team of dedicated customer service representatives who can assist with their life in-force policy needs. Executive Service Center benefits are available to Partners at the Silver level and higher. Deferred Compensation Program 4 An exclusive benefit of PREMIER PARTNERS membership, the Deferred Compensation Program allows Partners to defer a percentage (based on their membership level) of their commission income, and/or LFS gross dealer concessions, as part of their personal retirement program. The plan allows most producers to defer federal and most state income and related self-employment taxes on all contributions and earnings to their account until they receive benefits. Pinnacle members who are not current Partners may also participate and defer up to 75% of income as described above. Deferred compensation percentage 75% 100% Bronze Silver Gold Platinum Platinum Plus Image Builder funds 5,6 Image Builder funds provide reimbursement to assist Partners with approved business expenses. Amounts are based on PREMIER PARTNERS membership level. Sustaining Partners may use their Image Builder funds to match contributions made to Section 501(c)(3) organizations. The organizations must fit the established guidelines of Lincoln Financial s Matching Gift Program in order to receive tax-deductible contributions. Image Builder reimbursement will be included in the Partner s current year income for tax purposes. First-time qualifying Partners at the Bronze and Silver levels are not eligible for this benefit. All Image Builder reimbursement requests must be submitted by December 1 of each program year. See notes on back cover

7 Premier Partners level Producer MGA/Agency (RSM/ASM) Bronze $175* NA Silver $250* $750* Gold $500 $1,500 Platinum $1,000 $3,000 Platinum Plus $1,000 $3,000 Silver Sustaining $1,500 $2,500 Gold Sustaining $3,000 $5,000 Platinum Sustaining $6,000 $10,000 Platinum Plus Sustaining $6,000 $10,000 *Excludes first-time qualifying Bronze and Silver Partners. Matching Gifts 5,6 Sustaining Partners who wish to use their Image Builder dollars to match a gift they have made to a qualifying organization may do so, up to the maximum of their unused Image builder reimbursement balance or $5,000, whichever is less. The organizations must be Section 501(c)(3) and must fit the established guidelines of Lincoln Financial s Matching Gift Program in order to receive tax-deductible contributions. See notes on back cover

8 1 All New York business is excluded for noncash PREMIER PARTNERS benefits. Partners who are registered with an outside broker-dealer must qualify for noncash benefits based on proprietary individual and survivorship fixed life, Lincoln MoneyGuard, and proprietary individual fixed annuity Net PAP-R only. Proprietary individual and survivorship variable life sold through a nonaffiliated broker-dealer can be used to qualify for PREMIER PARTNERS benefits that are not subject to the noncash rules. Under certain circumstances, the producer may have to obtain permission from their broker-dealer to receive benefits, and compensation may be paid through the broker-dealer. 2 Corporate Discount Program is a third party program with the suppliers; therefore, terms and availability are subject to change without prior notice. The Deferred Compensation Program is administered by a third party vendor, and the Company reserves the right to amend or terminate the Deferred Compensation Plan at any time. Participants will be informed of any changes to the plan if they become necessary. 3 Image Builder funds and industry dues reimbursements will be included in the Partner s current year income for income tax purposes. Must list Lincoln Financial Group as primary company in the industry s organization. The list of approved business expenses for Image Builder is subject to change. 4 The Deferred Compensation Program is administered by a third-party vendor, and the Company reserves the right to amend or terminate the Plan at any time. Participants will be informed of any changes to the Plan if they become necessary. 5 Image Builder funds and industry dues reimbursements will be included in the Partner s current year income for income tax purposes. Must list Lincoln Financial Group as primary company in the industry s organization. List of approved business expenses for Image Builder is subject to change. 6 The Matching Gift limit for 2014 Sustaining Partners is the amount of their Image Builder funds or $5,000, whichever is less Lincoln National Corporation Lincoln Financial Group is the marketing name for Lincoln National Corporation and its affiliates. Affiliates are separately responsible for their own financial and contractual obligations. LCN POD 3/14 Z04 Order code: LIF-MGA-BRC011 For agent or broker use only. Not for use with the public.