The Newport Group: Supercharging Executive Benefit Plans

FOR IMMEDIATE RELEASE

“Corporate benefits directors need to regularly benchmark their executive retirement plans against their peer companies,” according to Eddie Allen, Managing Director of The Newport Group. The Newport Group is one of the leading retirement services and asset management firms in the country and will be represented at the upcoming marcus evans Corporate Benefits Summit 2011 in Hollywood, Florida, June 15-17. Ahead of the Summit, Allen offers advice on more efficient executive benefit plan management and higher participant utilization. 

What issues are corporate benefits directors facing today?

Eddie Allen: At many companies, executive compensation and deferrals have decreased over the past few years, requiring corporate benefits directors to be more educated and creative in their use of deferred compensation programs. In addition, there is a perception that deferring income in a rising tax rate environment is not advisable. However, Newport’s analysis shows that deferring income remains advantageous to the executive assuming income is deferred for at least three to four years. Based on Newport’s experience with plan sponsors and participants, we know that the average deferral period is much longer than four years; therefore, pre-tax deferred compensation plans remain one of the most attractive executive benefit tools for creating wealth and additional retirement benefits.
 
What should be on corporate benefits directors’ agendas today?

Eddie Allen: Corporate benefits directors need to regularly benchmark their executive benefit plans against their peer companies. A thorough retirement plan benchmark analysis allows them to see how their plans rank relative to their industry peers and shows whether or not their benefit plan dollars are being utilized to the fullest extent. The Newport Group is the only full-service retirement services firm with this benchmarking capability.
 
The recession has also given many companies the opportunity to think outside the box in terms of utilizing their DCP for “sign on” or “stay” bonuses. These recruiting and retention tools are often overlooked and are ways to create extra benefit value with very little additional work or effort.

What best practices would you recommend?

Eddie Allen: Companies should ensure they have the four key competencies in place that are needed to effectively manage their executive benefit programs. These core competencies are: consulting, asset management, communication/education and administration.

Consulting comprises all aspects of plan design, plan and trust documents, compliance and financial modeling. Asset management involves matching trust assets with plan liabilities and the creation of a “best in class” participant investment menu. A well-designed communication and education strategy is necessary for executive plans to succeed. Proper plan administration includes all of the tools necessary to satisfy the plan sponsor and the participants including a recordkeeping system built specifically for non-qualified plans and comprehensive corporate financial reporting.

How can retirement plans be better aligned with organization goals?

Eddie Allen: The retirement plan must be consistent with the overall compensation strategy of the organization. What some companies do is pigeonhole their deferred compensation plans as a “401(k) make-up” plan to simply allow for modest additional deferrals. We feel that incorporating deferred compensation programs into the overall compensation and benefits strategy, including recruiting and retention, is a far better approach. There are so many ways companies can supercharge their already existing plans to better achieve their organizational and participant driven goals.

Contact:
Sarin Kouyoumdjian-Gurunlian
Press Manager
marcus evans, Summits Division
Tel: + 357 22 849 313
Email: press@marcusevanscy.com

About the Corporate Benefits Summit 2011

This unique forum will take place at The Westin Diplomat Resort & Spa, Hollywood, Florida, June 15-17, 2011. Offering much more than any conference, exhibition or trade show, this exclusive meeting will bring together esteemed industry thought leaders and solution providers to a highly focused and interactive networking event. The Summit includes presentations on the response of corporate benefits executives to healthcare reform, non-traditional health and wellness programs, new practices utilized in designing retirement plans, international strategies utilized by benefit executives, social media strategies that enhance employee communication and innovative benefit plans that drive corporate objectives.

For more information please send an email to info@marcusevanscy.com or visit the event website at event website 

Please note that the summit is a closed business event and the number of participants strictly limited.

marcus evans group – corporate performance sector portal

Complementing our Summit format, the HR Network – marcus evans Summits group delivers peer-to-peer information on strategic matters, professional trends and breakthrough innovations. Lend an ear to fellow experts and live news from our events on our LinkedIn and Twitter accounts!

About The Newport Group

The Newport Group specializes in the creative design, funding, and administration of executive benefit plans. Through its innovative and customized solutions, Newport is uniquely positioned to satisfy the financial and executive benefit needs of employers and employees, and has done so for hundreds of the country’s largest and best-known companies.

www.newportgroup.com

About marcus evans Summits

marcus evans Summits are high level business forums for the world’s leading decision-makers to meet, learn and discuss strategies and solutions. Held at exclusive locations around the world, these events provide attendees with a unique opportunity to individually tailor their schedules of keynote presentations, think tanks, seminars and one-on-one business meetings. For more information, please visit www.marcusevans.com 

All rights reserved. The above content may be republished or reproduced – kindly inform us by sending an email to press@marcusevanscy.com