LINQS+ Celebrates Ten Years Protecting Executives and Institutions from Longevity Risk: Since 2011, LINQS+ has helped financial institutions retain, recruit and reward top talent for less. LINQS+ has revolutionized the non-qualified deferred compensation marketplace by giving peace of mind to both the participant and the institution: the participants know they will never outlive their stated income (there is no variability in the benefit) and the institutions have a fixed expense that is on average 28% less than a traditional plan.
LINQS+ is NOT life insurance. As described above, LINQS+ actually reduces the cost of the benefits with the actual design specifically addressing the liability expense.
Click here to see LINQS+ 10 Year Anniversary in Numbers.
With Lifetime Income Non-Qualified Solution (LINQS+), the financial institution purchases an insurance company guarantee to make the lifetime benefit payments. The Insurance Company takes the longevity, investment, and interest rate risk. The financial institution carries the asset as an investment on the balance sheet and earns interest at the current market rates.
This proprietary innovation to the traditional supplemental executive retirement plan (SERP) combines the best of a traditional SERP with a mechanism to enhance executive retention and reduce the cost of the benefits for the financial institution.
EXAMPLE OF PROTECTION AGAINST LONGEVITY RISK:
- An executive is to receive $100K annually for 15 years under a traditional SERP; the cost of the plan is $1,500,000 (100K x 15).
- With LINQS+, an investment of $800K will provide a GUARANTEED lifetime benefit stream of the same $100K annually.
- The financial impact is a positive savings of $700K for the financial institution, and the executive receives an enhanced LIFETIME benefit, which would equal $2,100,000 based on expected mortality.