Split-Dollar plans can be a very attractive executive benefit for Credit Unions. They have appealing tax advantages and, if properly structured and administered, can ultimately return all money spent, plus interest, back to the Credit Union. BFB has an exclusive Secured Split-Dollar™ plan, which is a new approach to a time tested executive benefit.
Supplemental Executive Retirement Plan
Also known as “Top Hat” plans, SERPs are non-qualified retirement plans that provide benefits beyond what is covered in other retirement plans, such as 401(k) and defined benefit pension plans. Many different kinds of SERPs are available and BFB will help you build an attractive plan for your Credit Union.
Death Benefit Only Plan
Death Benefit Only plans provide an executive’s designated beneficiaries a lump sum benefit should the executive die while employed by the Credit Union.
A 457(f) plan is a non-qualified deferred compensation program that allows your Credit Union to contribute money to a designated account on a pre-tax basis. There are no contribution limits to this type of plan, giving your Credit Union the ability to contribute on behalf of its executives beyond the limits of qualified retirement plans.
A 457(b) plan is ideal for those who wish to contribute deferred compensation above the annual limits of 401(k) plans. Using this plan, your Credit Union can help its executives save for retirement without needing to operate extensive pension plans.
Incentive & Bonus Plans
As millions of Baby Boomers reach retirement age, the structure of the modern workforce is changing dramatically. Boards are looking to strengthen their succession plans, yet they realize that little value exists in offering retirement benefits to younger executives. BFB will work with your Credit Union to design incentive and bonus programs that offer pre-retirement benefits and will appeal to the next generation of talented leaders.