Building the Right Mix of Benefits and Incentives for Your Key People Customized Executive Benefit Plans Affiliated Company
NYL Executive Benefits LLC (NYLEX Benefits) is an independent subsidiary and the executive benefits consulting arm of New York Life Insurance Company. NYLEX Benefits is exclusively dedicated to providing our clients with comprehensive solutions for their executive benefit program needs. Our clients include major and midsize U.S. corporations, professional firms, banks and hospitals, with plans totaling billions of dollars in assets and benefits.
Your Talented People. Your Competitive Edge. In today s economy, keeping your most talented people and motivating their performance are more crucial than ever to staying competitive. NYLEX Benefits can help tailor an executive benefits program that sets your company apart from the rest. NYLEX Benefits can make your company more attractive to existing and future top performers by focusing on three important areas: recruitment, retention and motivation. g RECRUITMENT Winning in the talent marketplace with competitive benefit programs. g RETENTION Rewarding and retaining key people who can impact your bottom line. g MOTIVATION Motivating management to achieve peak long-term performance. 1
Big-Picture Analysis. Fully Coordinated Programs. No two companies are exactly alike, so no single solution fits either. While we focus on designing, implementing and administering benefit programs, we consider the total package your company provides to management and key employees: cash compensation, benefit programs and equity arrangements. By taking a holistic approach, we create coordinated benefit programs tailored to the needs of your company and participants, while avoiding gaps or duplication in the benefits provided. Coordinated Compensation and Benefits Program Cash Compensation Supplemental Benefits Equity Arrangements Base Salary Supplemental Retirement Income Phantom Stock Annual Bonus Voluntary Deferred Compensation Stock Options and Grants Long-Term Incentives Survivor Income and Supple - mental Insurance (Life, Disabi - lity, Long-Term Care Insurance) Performance Shares 2
We work directly with you to: Evaluate your needs and recommend action. This includes a careful analysis of your company situation, from its operating form (such as C Corp, S Corp, Partnership, LLP, LLC, not-for-profit) and specific concerns to big picture recommendations. Design programs that are consistent with your company s needs. We focus on sound, creative recommendations to help you remain competitive. We identify benefit trends and best practices. We keep abreast of the current law and tax provisions in this area. We deliver unbiased recommendations and help find the balance between the interests of business owners and key employees. Present and advocate programs to boards and shareholders. This represents a coordinated strategy to gain board approval. Our expertise makes our recommendations credible; our experience makes our advocacy effective. Recommend financial strategies to help minimize cash and earnings pressure. We help define benefit liabilities and create assets to help offset plan costs. Service benefit programs and make them easier to administer. We stress thorough follow-up: Documentation assistance for our clients attorneys Assistance for our clients auditors Comprehensive reporting support Regulatory compliance support Monitoring of ongoing program and funding performance Periodic program reviews and actuarial valuations Whether you re considering supplemental executive benefit programs, voluntary compensation deferral arrangements, improved director benefits or financially attractive alternatives to traditional welfare benefit plans, NYLEX Benefits can help you make the right decisions. 3
Expert Guidance. Practical Solutions. Meeting the diverse needs of our clients requires the right team of professionals. We have the talent, expertise and creativity to help you build the appropriate executive benefit plans for your company. Our staff includes a select group of professionals, each dedicated to a specialty area in supporting client programs, processes and services. Actuarial Accounting Finance Legal Insurance Benefits Project liabilities and funding under various plan design and economic assumptions. Comply with GAAP and audit requirements. Explore alternative funding options to determine the most costeffective and tax-efficient funding solutions. Support proper program documentation and regulatory compliance. Guide life insurance product design, institutional pricing and management to ensure efficient funding. Oversee administrative support systems and servicing to ensure programs are properly managed. 4
We maintain contact with regulatory agencies and leading accounting and law firms. In this way, our analysis always reflects current developments and the best-informed estimates of how the landscape may change in the foreseeable future. Phase 2 Detailed Analysis and Specific Program Design Develop new plan designs and/or modifications to your existing programs that meet the established objectives. Finalize plan and funding solutions. Planning Process for Customized Solutions Our experience has shown that the most effective approach is to separate our process into three distinct phases. Phase 1 Initial Review and Interactive Modeling Partner with you to identify basic company objectives and establish initial program design parameters. Analyze existing benefit programs and design alternative arrangements on a what-if basis using our proprietary actuarial modeling systems. Phase 3 Program Implementation and Ongoing Administrative Support Provide drafts of proposed plan documents, trust agreements and enrollment material to you and your attorneys for review and approval. Draft communication materials for your plans and help you conduct enrollment meetings with participants so that they can understand and fully appreciate the plan benefits being offered. Ongoing support to make sure programs deliver the expected benefits. We take great care to ensure that our programs are designed to achieve our clients strategic and operational goals and maximize the return on the dollars spent. 5
Proprietary Tools. Personalized Service. At NYLEX Benefits, we ve developed a series of proprietary, interactive actuarial modeling tools to help design, implement and manage our clients executive benefit programs. These tools can help simplify your initial decision making and ongoing oversight by providing the financial information that matters most before and after your programs are in place. Our modeling systems provide: g Projection of individual participant pre- and post-retirement benefits g Year-by-year plan asset-liability matching analyses, company cash flow analyses, and the accounting impact on the company s earnings statement and balance sheet g Funding alternative analyses g Suggested accounting journal entries and associated financial statement footnotes g Detailed supporting schedules Our relationship with you continues well after your executive benefit programs are in place. In fact, we care as much about servicing your programs as we do about creating them. We ve built our service group to help ensure that our clients programs achieve what they set out to do. We ll evaluate the success of your programs with you and help make sure they continue to meet your company s needs. From systems to personal service, we re committed to providing executive benefit programs that help your company remain competitive and successful. 6
Proprietary Tool: Projected Sources of Replacement Income for Retirement Our Rei-Source Management System (RMS) projects retirement income replacement ratios from your company-sponsored sources and helps you see the combined impact of your existing qualified, nonqualified and equity plans. RMS is an interactive model, so it can demonstrate the effect of benefit plan changes, as well as potential economic changes, on a company-wide and an individual participant basis. The system also helps us tailor your benefits for different levels of management and guides us in meeting specific company objectives. Many companies have found this analysis invaluable in designing a nonqualified executive benefits program that supplements qualified plan benefits and helps provide executives sufficient income after retirement. Hypothetical Example* Other Sources (20%) Future 401(k) EE Deferrals (1.2%) Qual. DB Pension (1.9%) NQ SERP (40.8%) Current Option/Grants Awards (9.2%) Social Security Benefit (2.2%) Current 401(k) Balance (2.1%) Stock Option/Grants Awards (7.5%) Future 401(k) Company Match (0.7%) Current NQDC Balance (9.2%) Future NQDC EE Deferrals (2.7%) Future NQDC Company Match (2.5%) *Based on projected replacement percentage of final salary. 7
Contact Us Today. To find out how NYLEX Benefits can help your company with customized executive benefits: g Call us at 203.353.5800 g g E-mail us at nylex@nylexbenefits.com Visit us online at www.nylexbenefits.com Nothing contained herein is, or should be construed as, legal, tax or accounting advice, nor is it intended or can it be used for the purpose of avoiding penalties under the Internal Revenue Code or applicable state or local tax provisions. This communication was written to support the promotion or marketing of the matters or transactions addressed herein, and clients should always consult with their independent professional advisers to seek legal, tax, and accounting advice on the applicability of this information to their particular circumstances. 8
NYL Executive Benefits LLC 281 Tresser Boulevard, Suite 1110 Stamford, CT 06901 T 203.353.5800 F 203.353.5844 www.nylexbenefits.com NYL Executive Benefits LLC (NYLEX Benefits) is a subsidiary of New York Life Insurance Company. 14278(08/10) SMRU 00431717CV (Exp.12/06/12)