Executive/Key Person Benefits
Some businesses offer additional benefits as part of the compensation packages for owners, executives or other key employees such as rainmakers or members of the board of directors. These benefits also provide vital protection to mitigate risks for the business. Rathbun Sargent puts together supplemental benefit plans customized to your objectives, such as:
Life insurance
Many businesses fund individual or supplemental life insurance for owners, officers or other key personnel. Life insurance plays an important role in protecting key employees and business partners, as well as addressing lender requirements. We can educate and advise you on options that best suit your unique needs, and expedite the approval of policies.
Funding buy-sell agreements
When a business owner departs or dies, a buy-sell agreement specifies how ownership will be transferred from the departing owner to the remaining owner/s. Rathbun Sargent offers solutions for funding this transfer of ownership and succession planning that minimize its financial and operational impact.
Retirement planning
While there are various options to help employees invest for retirement and save on taxes, it’s important to avoid practices that don’t pass the IRS discrimination test. This relates to average 401(k) contributions for highly compensated vs. non-highly compensated employees. Our expertise, focus on compliance and access to multiple retirement products helps you offer appropriate options for key employees while protecting your business and containing costs.
Supplemental Disability insurance
Basic disability insurance doesn’t cover nearly the take-home pay employees are accustomed to getting, especially for high-income earners, for whom it only covers 30-40%. Supplemental disability insurance helps bridge the gap between basic policy benefits and the employee’s full salary. If you wish, you can provide this for key persons or enable all employees to supplement their group disability insurance on a voluntary, self-funded basis.
Long-term care insurance
Long-term care insurance funds custodial (non-medical) care when an individual has a chronic condition where a recovery is not expected. Medicare and other health insurance do not cover custodial assistance (for daily living activities like eating, bathing and dressing). The impact of a serious illness or injury can be even worse on the employee and their dependents in the absence of long-term care insurance.
Estate planning
Too often overlooked by small businesses, estate planning provides important protection for your business and family. We have a close working relationship with select estate planning attorneys whose expertise and service level meet the high standards we set for ourselves. Rathbun Sargent partners with them to ensure that your estate is well-protected and handled appropriately based on your objectives.
Deferred compensation
Deferred compensation is used in select situations when it benefits the business and employee to delay a portion of the employee’s income and pay out at an agreed upon future date. In the classic case, deferred compensation is utilized as a supplemental retirement arrangement for key and highly compensated individuals who have maximized contributions to their organization’s retirement plan.