Executives are compensated differently than lower-level employees. This disparity is something that needs to be altered to help improve overall performance and morale. There is little doubt that your ordinary employees are the backbone of your organization and as such, everyone deserves the same types of insurance offerings – executive benefits should be no exception. Limitation issues can arise, but those can also be sorted out relatively easily.
Reasons to Arrange an Executive Benefits Plan
Corporate benefits strategies can help you stand out from the crowd of competitors looking to recruit from the same talent pool that you are. That’s why putting together the most attractive package possible will reap happier outcomes for all stakeholders involved. Replacement income takes the place of retirement-based compensation; this can also make preparations for retirement less confusing even if it is done years beforehand. The IRS also places limits on certain qualifying plans, and this approach can test those limits and potentially get around them as well. Supplemental benefits are a key component of this arrangement, as is the ability to defer compensation if that turns out to be more profitable and preferable. In these uncertain times, insurance payments being delivered upfront could be more needed more urgently.
A Look at Eligibility Criteria
Now the next factor to consider is who is eligible to receive these benefits. The Department of Labor stipulates that these plans cover top executives and managers along with any other senior employees who have earned their way to the upper echelon. Some of the job titles that call for these insurance benefits include president, chief executive officer, chief financial officer, senior vice president, and treasurer.
Some Examples of the Plans Themselves
Next, we can spotlight some examples of what these plans are in the first place. One type of package is known as the deferred compensation arrangement while another is the benefit equalization plan or BEP. Executives and directors can take advantage of deferred plans to get similar compensation which is not subject to relevant taxes. The BEP can also be a workaround related to the plan salary limit put in place by the IRS and other constraints such as the maximum 401(k) deferral and ADP/ACP compliance refunds.
A Customer Testimonial
Here at the MWE Partnership, we are thrilled to be able to provide whatever insurance-related assistance we can give you. This week, we’d like to tell you about another pleased customer who was delighted with the experience we provided them. Angie Dick, an employee of Raymond Geddes, asked for help regarding an insurance claim. She had to submit AFLAC claims through an email, and our own William Fedo did his best to make that process as smooth as possible. He managed to facilitate the approval process and answer all of her coverage questions to boot. Well done, William!
Get Your Voluntary and Supplemental Insurance Policies with the MWE Partnership!
Are you a business looking to provide your employees with essential voluntary benefits? If so, look no further than The MWE Partnership. When you choose The MWE Partnership, you get experienced service and comprehensive voluntary benefit options that will meet the needs of all your employees. With over 17 years of experience, The MWE Partnership is your one-stop-shop for all your supplemental benefit needs. If you are interested in finding out how The MWE Partnership can help your business, then contact us today! Also, be sure to like our Facebook page and follow us on Twitter and LinkedIn for all the latest voluntary benefit news!