Banks and Credit Unions Choose Lifetime Retirement Benefit LINQS+

Banks and Credit Unions Choose LINQS+, a Lifetime Retirement Benefit

Banks and credit unions across the country – from Massachusetts to NJ to Georgia to California – have incorporated a benefit solution in their compensation packages that retains top talent with a lifetime retirement benefit that is less expensive than your traditional SERP. It’s called LINQS+. Here are some recent examples of this win-win.

• A Georgia bank added a LINQS+ lifetime benefit to an existing BOLI plan and kept a key employee on board.
• A Massachusetts Federal Credit Union combined pre-retirement payouts, retirement benefits guaranteed for life and a death benefit protection, providing the security for their CEO’s family and estate and firmed up his loyalty.
• A community bank in New Jersey’s multi-product BOLI/LINQS+ upgrade not only rewarded key executives but also recognized the value of their future executive team. The plan has been such a success that not a single participant has yet to leave the bank.
• A California bank converted the bank’s SERP into a LINQS+ plan by focusing on the lifetime benefit for the bank’s executive team. The plan saved the bank money.

Some conservative organizations have called in their attorneys and auditors to see how a lifetime retirement benefit actually works. They were impressed.

When a key lender was being recruited by a competitor with the offer of a SERP plan, the bank wanted to be able to offer a benefit without an additional BOLI purchase. A Lifetime LINQS+ benefit was the answer to retaining a key employee.

LINQS+ doesn’t only provide a great benefit for the employee. One bank’s existing compensation portfolio had outperformed other bank eligible investments, so reviewing, diversifying and establishing a multi-product approach including LINQS+ allowed the bank to take advantage of attractive yield projections.

Here’s another example. Led by their new CFO, the bank’s SERP program was being evaluated. One suggestion was to provide additional premium for established participants whose existing salary-based Split Dollar Plan had outgrown its in force coverage. Rather than enrolling new participants into their existing plan, they instead converted the bank’s SERP into a LINQS+ plan. It took some education and remodeling of their compensation plan, but the bank realized the solution would benefit the institution and enhance their ability to retain top talent.

New plans. Redesigned existing plans. New leadership. Expanded benefits. All are capable of a lifetime retirement benefit.

If LINQS+ is a benefit you’d like to include in your compensation plans, contact Flynt Gallagher, President Newcleus Compensation Advisors, for details.