THE PLATINUM SECURITY PLAN ©

ENDORSED PROVIDER OF
THE CONNECTICUT BANKERS ASSOCIATION

In order to compete for talent, banks use supplemental executive retirement plans (SERPs) to attract and retain select employees.  

Traditional bank SERP designs have their challenges:

• SERP is a liability/expense to the bank
• Benefit is taxable to the participant
• Participants benefit is subject to banks insolvency or regulatory takeover
• Executives personal net worth and retirement is too heavily concentrated in the bank
• Plan subject to 409(A) and 280(g)
• Liability is often offset by BOLI, which has many advantages, but by design is a MEC (Modified Endowment Contract), making it subject to taxes and penalties, limiting the banks ability to access cash value.
• Cost recovery from BOLI death benefit

Why consider the Platinum Security Plan ©?

• Plan is an asset of the bank, not a liability
• Benefit can be non-taxable to the participant
• Participants money is protected by law
• Participants money is with a highly rated insurance carrier, not the bank
• Plan not subject to 409(A), 280(g) and Reg. O
• Policy designed as NON-MEC, allowing bank as policy owner to access a portion of the cash value without taxation and no penalty
• Cost recovery can be at participants retirement or from death benefit
• Plan is not considered a Top Hat plan, so not limited to just the highly compensated of the bank
• Can be offered to board of directors and even branch managers
• Simple plan administration and reporting