Increasingly, senior executives are prevented from accruing the retirement benefits they once enjoyed due to repeatedly lowered upper limits for qualified retirement plans. Making up for the gap between anticipated benefits accruals and those now permitted under the corporate retirement plan has become an important goal at many companies. Analyses, communications and plan design prepared by Tomkins and Associates have contributed significantly to achieving this goal at many companies.
Situation: A world class, foreign-owned corporation wanted to retain top U.S.-based executives but had trouble competing with retirement plan and stock-based compensation programs offered at major U.S. competitors. Communication between management and local executives was difficult and somewhat strained. Progress on implementation of executive retirement benefit program had stalled following years of study.
Solution: Working with the parent company's bank and investment advisor, Tomkins and Associates carefully designed, proposed and adjusted a three-tiered supplemental executive retirement program. The project included several meetings with management and executives, a one-day turnaround on actuarial projections and anaylsis, plus phone conversations with the executives, attorneys and financial planners.
Results: The plan was approved by all executives, recommended by senior management and approved by the President and Board of Directors of the company. Three months following the date Tomkins and Associates were introduced, the plan was implemented. All parties remain pleased, and the plan received a favorable Private Letter Ruling from the IRS.