Non-Qualified Executive Benefits

Hartman Approach: Nonqualified Executive Benefits (e.g. Deferred Compensation, SERP, Top Hat Plans, Phantom Stock, Excess Plans, etc.)

In order to recruit and retain top talent, organizations will oftentimes provide nonqualified benefits to top-performers as a segment of their total compensation strategy. Nonqualified plans have more flexibility than their qualified cousins, such as 401k and Profit Sharing Plans, but are also subject to a different set of rules and administrative requirements under IRC 409A.

 

Hartman extends our process-based approach to customer service in areas of nonqualified plans with particular emphasis on the following areas:

  • Plan design - Hartman works collaboratively with the plan sponsors advisors and Third Party Administrator relationships to develop recommendations for plan features to optimize a plan desing to achieve business goals.
  • Plan Review – We specialize in reviewing existing plans in the areas of:
    • IRC 409A compliance
    • Administration and Reporting capability review to ensure they are up to date with the latest capabilities
    • Plan funding analysis to ensure that plan are funded in an efficient manner
  • Platform and TPA flexibility – Hartman maintains relationships with numerous platforms, in an effort to provide our clients with the "most suitable combination of vendors" based upon their specific circumstances. We are not tied into one platform, mutual fund family, insurer, or Third Party Administrator!
    • Of particular importance in nonqualified benefits administration is the evaluation of administrative and reporting “connectivity” between the informal asset and plan liability.
  • Financing analysis – Hartman supports the decision-making process around financing alternatives through financial models contrasting plans informally funded with taxable investments, Corporate Owned Life Insurance (COLI), and unfunded.
    • Hartman also supports plan sponsors and their legal / tax advisors while security mechanisms, such as Rabbi Trusts, are evaluated to protect participant interests.
  • Investment monitoring – Hartman utilizes various tools to benchmark performance and expense of investment options within nonqualified plans.
  • Investment education – in addition to consulting at a plan level, we support employee education of plan features, investment options, and general asset allocation, as well as other financial matters that "fit" into the objectives of the plan sponsor and participant.

Hartman works with a collaborative style, enabling outcomes through a process of needs assessment, plan and vendor evaluation, implementation, and ongoing service.