Newcleus Titanium, a revolutionary deferred compensation alternative, exclusively for Newcleus’ clients, provides unique benefits for both the employer and the plan participant.

Newcleus Titanium, a revolutionary deferred compensation alternative, exclusively for Newcleus’ clients, provides unique benefits for both the employer and the plan participant

Newcleus Titanium utilizes an insurance product that is owned by the employer, is held as an asset on their balance sheet, and provides cost recovery for the benefit plan at the retirement of the plan participant. Unlike a typical deferred compensation plan, there is no GAAP accrual to book. Titanium is an effective strategy to provide both retirement income and death benefit to key executives with minimal investment and credit risk as compared to other non-qualified programs. In addition, it is not subject to IRC Section 409A and avoids ERISA and Regulation O. Because of this, Titanium can be an attractive plan for banks, credit unions, as well as non-financial companies.

For the plan participant, this unique strategy provides retirement income that vests over time, and death benefit protection starting at the implementation of the plan. Once the participant retires they have a fully vested insurance product that is not subject to creditors of their employer, which is not the case with non-qualified deferred compensation. The participant can choose a non-taxable stream of income and also a tax-free death benefit for their heirs. The participant is in full control of their plan and has no post-retirement worries as to employer performance, solvency, change in heart of future management, or future acquisition.

Non-qualified deferred compensation plans are relatively common. The good news is many of these plans can be converted to the Titanium Plan with relative ease. Contact us today to learn more about how the Titanium plan can help your company and those that power it.