0 Executives

with retirement and survivor benefit plans in place

$ 0

After 6 years, the corporation identifies $2,000,000 gap between benefit promises made and funding assets (Company Owned Life Insurance – “COLI”)


Each executive will maintain their original retirement benefits as promised

$ 0 k

Corporation reduces funding gap from $2,000,000 to $320,000

COO Dave is concerned about the underlying COLI policy performance being used to support the company’s Executive Retirement plans for him and two other top executives, which began six years ago. After an analysis of the increasing corporate promises made to the executives and the policies being used to fund those promises were not performing as expected (-5.15%), it revealed a $2,000,000 funding gap that the corporation would have to absorb over time unless changes were made.

Acru Process

  • Collect “in-force” illustrations
  • Complete Underwriting Advocate
  • Freeze existing SERP obligations and exchange policy values into a better performing COLI policy
  • Implement new Executive Bonus plans for each executive for future benefit plan funding

Client Impact

  • Each executive retains original tax-affected retirement benefits
  • The corporate funding gap of $2,000,000 over time was reduced to $320,000

Risk. Resolved.