DANBURY, Conn., May 5, 2011 — Corporate Compensation Plans (CCP – http://www.corpcompinc.com) announced today the introduction of a comprehensive executive compensation benefit program to protect highly paid employees' income and wealth accumulation plans.
"Most large companies," said Philip Davis, CCP's President, "have designed highly effective cash, incentive compensation, and asset accumulation plans for their key employees. However, in most cases, they have not provided the programs to protect the wealth being created by these plans."
To solve this problem, CCP has created a Wealth Preservation Program with four components:
1. The Tax Conversion Component will convert taxable nonqualified deferred compensation survivorship benefits into income tax-free and estate tax-exempt benefits with the potential to save millions of dollars at little or no cost to either the company or the executive.
2. The Disability Security Component will continue employees' contributions to their nonqualified deferred compensation plan accounts when they become disabled so their assets will grow just as if they were working. The component can be funded from corporate contributions or from increases in executives' deferrals.
3. The Tax Free Bonus Component pays selected employees bonuses to purchase extended health care insurance. The purpose of the insurance is to protect their wealth against the millions of dollars of costs that can result from serious strokes or injuries or from illnesses such as cancer, Parkinson's and Alzheimer's. The component works as follows:
- The bonus payments are deductible to the company and may be eligible for substantial tax credits.
- The bonus payments are not taxable to the employees.
- The insurance benefits are income tax free and can be made estate tax exempt.
- If the policies are never used, the total bonus payments will be refunded to the employees' beneficiaries when they die. In essence, this provides key employees with a deferred compensation death benefit funded with tax-deductible corporate dollars at no cost to themselves and without 409A requirements.
4. The Disability Equalization Component extends the basic group long-term disability insurance coverage up to $10,000,000 of base, bonus and incentive compensation to protect highly paid employees from the catastrophic losses of income they would suffer if they become disabled — losses than can run into the tens of millions of dollars.
"Our new Program," said Tasha Mayberry, CCP's VP of Marketing, "is necessary to protect executives' incomes and assets against the severe economic losses that can be caused by disability, death, or a severe injury or illness. In addition, we have built the systems that are required to communicate, enroll and administer the programs and, as a result, little work or effort is required by the company's Human Resource Department."
For nearly 40 years Corporate Compensation Plans has been providing tax-advantaged benefit programs to many of the largest companies and law firms in the country. CCP specializes in executive compensation programs that help protect income and preserve wealth through no-cost solutions to the employer. Their goal is to enhance the financial security of employees and to help companies attract and retain the top talent needed to compete in today's global economy.
Contact:
Tasha Mayberry
Vice President Marketing
Corporate Compensation Plans, Inc.
457 Main Street
Danbury, CT 06811
800.334.6447
http://www.corpcompinc.com
Twitter handle: @CCPInc
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