Non-Qualified Deferred Compensation plan

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1 EMPLOYER Non-Qualified Deferred Compensation plan Help attract and retain top performers by providing a path to personal freedom and peace of mind to select high-compensation employees. NOT FOR USE WITH EMPLOYEES.

2 Synchronize your total retirement benefits with a Non-Qualified Deferred Compensation plan Statutory limits imposed on qualified deferred compensation plans, like 401(k) and 403(b) plans, make it difficult for your highly compensated employees to save adequately to replace their income in retirement. A Non-Qualified Deferred Compensation (NQDC) plan may be an excellent solution to help fill that retirement savings gap for your top performers.

3 ADVANTAGES FOR YOUR ORGANIZATION Attractive Powerful tool to attract and retain top talent by having this offering in your compensation package Selective Freedom to select participants among your highly compensated employees Flexible Deferred compensation plans can be tailored to meet corporate objectives and complement other salary and benefit programs ADVANTAGES FOR YOUR KEY EXECUTIVES Defers income on pretax basis Participants pay taxes upon distribution Provides additional retirement savings Helps narrow the gap between pre-retirement and retirement income Allows in-service distribution Participants may be able to set up in-service accounts that pay benefits prior to retirement for shorter-term savings needs such as college expenses MassMutual, along with your advisor, can show you how your Defined Benefit, Defined Contribution and NQDC plans are working together. MassMutual makes available all the components you need to offer an attractive NQDC plan that complements your new or existing retirement benefits program. We utilize MyDeferral Executive Benefits to provide administrative services on our behalf and have an arrangement with Reliance Trust Company to provide the plan with trustee services. 1

4 A NQDC plan with MassMutual Experts in sync with your program Flexible solutions to provide a competitive benefits package through Total Retirement Services (TRS). Over 25 years performing accurate record-keeping for this specialized plan type. Flexible plan design Our team of highly knowledgeable professionals will consult with you to design a plan that meets the needs of your business. Whether you are providing a 409A, 457(b) or 457(f), our NQDC platform is built specifically for various unique plan type with safeguards in place to ensure legislative and individual plan requirements are administered properly. Some of the customizable features include administering multiple: Contribution sources (e.g., employee deferrals and employer contributions) Vesting options for employer contributions Distribution events/accounts (e.g., retirement or in service distribution elections) Investment options for each distribution event/account Powerful financing options Corporate Owned Life Insurance, COLI, a tax efficient means for companies to help fund or offset employee benefit costs. To your company s benefit, increases on policy accounts generally accumulate on a tax deferred basis, helping to extend the savings. Mutual Funds in which investments are selected and monitored by a professional portfolio manager. 2

5 Hassle-free NQDC plan installation Our experts prepare and finalize the necessary documentation, including plan and trust documents, and Department of Labor filings for your corporate counsel review. We will work with you to establish administrative and payroll procedures. We provide administrative and enrollment materials for a hassle-free implementation. Expert administration and recordkeeping MassMutual will manage the details of your NQDC plan. We will monitor legislation and keep you up to date on trends that may impact your plan so you can focus on other priorities. You will receive quarterly management reports to keep you informed. Plan participants will receive quarterly statements as well as access to account balance information. Professional trustee services A grantor trust, commonly known as a rabbi trust, is established and maintained for the plan at Reliance Trust Company to isolate money in the plan from working capital. Participants are provided with a level of security with respect to their non-qualified benefits. Assets held in the trust are still subject to the claims of the employer s creditors in the event of bankruptcy. 3

6 SERVICES AT A GLANCE Investments and plan installation Array of financing options Prepare plan and rabbi trust documentation Coordinate plan installation or conversion, if applicable Distribute announcement letter and enrollment materials, including plan highlights Assist with Department of Labor letter to claim exception from Form 5500 filings Customized administrative guidelines document Review and establish administrative and payroll procedures Administration and recordkeeping Track contributions by source, payout time, form, and investment option Maintain inception or conversion-to date contribution and balance information Advise you of contribution splits and amounts to wire to the trustee Prepare quarterly statements for participants Prepare quarterly management reports for plan sponsors Calculate distributable benefits Access plan account balances via MassMutual s RetireSmart.com To synchronize your total retirement benefits with a NQDC plan, contact your advisor, TPA, or retirement services professional at or call

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8 Neither Reliance Trust Company nor MyDeferral Executive Benefits is affiliated with MassMutual or any of its subsidiaries. The information contained in this brochure is not intended or written as specific legal advice. Neither MassMutual nor any of its employees or representatives are authorized to give legal advice Massachusetts Mutual Life Insurance Company (MassMutual), Springfield, MA All rights reserved. RS C:RS