EXECUTIVE BENEFITS
EMPLOYEE RECRUITING & RETENTION
The success of your business relies on building the right team and keeping your top talent. That's why employee retention is critical for your long-term growth.
Greystone Capital can help you lock down your company's heavy hitters with customized retention strategies they won't find anywhere else.
- As an off-cycle benefit, you can offer it to your employees at any time during the year.
- With tax-free withdrawals and no premium checks, it presents high-value benefits for your high-value employees.
Offer your key employees a way to finance their future—a future at your company.
EXECUTIVE DISABILITY CARVE OUT PLANS
The group long term disability insurance you offer your highly compensated employees is a good foundation, but likely falls short of providing the income protection they need.
A typical LTD plan replaces 60% of earnings up to a cap. The actual replacement amount for higher earners is usually significantly lower. The plan maximum may be too low for them, or their bonus income may not be covered in the calculation. The result is a serious gap, making it difficult for them to maintain their current lifestyles on the group policy alone.
That's where Greystone Capital can help. A customized, guaranteed-issue carve out disability plan through Greystone is relatively inexpensive, and allows you to selectively provide for the higher compensated employees. And, since it is guaranteed issue, the plan provides coverage for those at-risk individuals who would not be able to get coverage on their own.
NONQUALIFIED DEFERRED COMPENSATION
If you offer a 401(k) to your employees but it isn't meeting all their retirement planning needs, a nonqualified deferred compensation plan (NQDC) through Greystone Capital may be the solution.
NQDC plans give key employees the ability to defer more of their salary and bonuses on a pretax basis. You can make additional contributions into the account, but it is not a requirement.
Potential Employer Benefits:
- Serves as both a recruiting and retention tool for valued employees
- Requires less administration and fewer funding requirements than qualified plans
- Enables the business to select who receives benefits, when they receive them and how much they receive, unlike qualified plans
- The death benefit from using insurance funding can allow the business to recover costs
- Provides a tax deduction when employees receive compensation from the plan
Potential Employee Benefits:
- Recognition of key employees' contributions to your business
- Tax deferral of earnings until employee receives compensation under terms of the plan
- Source of supplemental retirement income
- Unlimited employer and employee deferrals, plan permitting
BUSINESS CASH ACCOUNTS
Short-term yields are often ignored. Your company's cash needs to be fluid, so a higher yield might seem unnecessary and unattainable. At least, that's what the banks would have you believe. Banks offer standard business accounts like Money Markets and CDs. These are fine, but they aren't enough.
Greystone Capital helps design strategies that offer higher short-term yields than banks, plus added benefits for your business.
This strategy can also be used to finance buy/sell agreements, employee retention and debt protection. Because of the unique structure of the strategy, life insurance is included and can provide a death benefit.
You and your company's money deserve more. More accessibility. More benefits.
BANK OWNED LIFE INSURANCE (BOLI)
BOLI through Greystone Capital is an attractive asset choice, because the tax-deferred interest generated by the policy is typically substantially higher than a bank can earn on their investments with a similar risk profile.
Higher earnings from BOLI can be used to:
- Help offset the rising cost of employee benefits such as healthcare and retirement programs through the use of the tax deferred income from BOLI assets;
- Finance Nonqualified Deferred Compensation plans for key executives; and
- Help diversify the bank's balance sheet by investing 2 to 3 percent of its assets in a BOLI policy.
BOLI FAQ's
HOW MUCH BOLI CAN A BANK BUY?
A bank can purchase up to 25% of its Tier 1 capital in BOLI.
HOW MUCH BOLI SHOULD A BANK BUY?
BOLI is a long-term asset. A bank should only buy an amount it is comfortable with relative to liquidity. BOLI can be surrendered at any time and the cash value returned to the bank, however, there may be taxes due on any gains.
WHAT ARE SOME RISKS WITH BOLI?
Credit Risk – Greystone Capital works exclusively with the most highly rated insurance carriers in the industry (A+ or higher with AM Best and Standard & Poor's), financials are monitored on an ongoing basis and diversification is recommended (no more than 15% of Tier 1 capital with a single carrier).
Interest Rate Risk – The carriers have guaranteed minimum crediting rates of anywhere from 1% to 3% for the life of the policy. The value of the asset does not fluctuate with the market.
WHO IS THE BANK ALLOWED TO INSURE?
The top 35% of the employees and directors that meet the standardized employment requirements.
DOES BOLI REQUIRE SHAREHOLDER APPROVAL?
No, just board approval.
BUY/SELL AGREEMENTS
If you're a business owner, you already know what it takes to run a successful company.
But what would happen to your business if something happened to you? What if you passed away? What if you were not able to work anymore? Or what if you simply wanted to walk away from the business?
Don't risk facing these scenarios and other situations that could disrupt your business and hurt its value. Greystone Capital can help you put a proper business planning tool in place, such as a buy/sell agreement, to clear up future uncertainties.
A buy/sell agreement, sometimes referred to as a buyout agreement or business will, governs the situation if a co-owner dies, is forced to leave the business or simply chooses to leave the business.
Greystone Capital works with your professional team to help design a buy/sell structure that is best for your situation and keeps your business on track.