Nonqualified Deferred Compensation Plans

Our nonqualified consulting specialists can help improve an existing plan or design a new one to meet your strategic goals. Our dedicated consulting services support advisors and plan sponsors through every step of the implementation and conversion process—collaborating closely with you to manage all aspects including enrollment, operations, technology, investments, recordkeeping, and administration.

We support:

• New nonqualified plans with a customized and tailored approach. This includes drafting plan and trust documents based on initial design discussions, and ensuring compliance by meeting reporting and disclosure requirements.
• Existing nonqualified plans with a comprehensive review of the current plan to identify areas for improvement or potential enhancements with clear, actionable recommendations. Retirement and investment advisors can take advantage of our free plan evaluation service.
• Participant investment consulting to assist with every step of managing participants’ investment choices. We’ll construct a Participant Investment Menu with an open architecture platform that includes a wide range of investment classes, fund managers, and asset allocation tools.

The plan’s financing strategy should be carefully crafted—and assets properly invested—to minimize the impact on the plan sponsor’s financial reporting. We focus on reducing this earnings volatility through a proactive approach to financing and hedging strategies.

• Insurance carrier/product due diligence: We excel in understanding insurance carriers and product structures—offering comprehensive evaluations that include contract analysis, pricing, negotiations, carrier credit research, and policy placement. As a leading administrator of institutional insurance, we leverage our experience to provide clients with top-tier products and pricing from premier carriers, and full administrative services for COLI
• Asset rebalancing and trading: Our asset/liability management team conducts daily reviews to ensure participant account investments and trust assets are aligned, automatically rebalancing based on established guidelines to maintain correlation and minimize earnings impact for plan sponsors.
• Institutional trustee services: Since the early 1980s, rabbi trusts have been used to support nonqualified plans. Newport Trust may be retained as trustee of a rabbi trust that an employer establishes to hold assets set aside to hedge, finance, and pay benefits for its NQDC plan.

Our suite of plan administration services includes everything from strategic meeting coordination to detailed administration guidance, all designed to align with each organization’s specific needs.

• Plan implementation and conversion management: Our comprehensive plan implementation and conversion management services ensure a timely and precise implementation or transition. Services include meeting coordination, timeline management, data interface planning, personalized communication, and administration guidance.
• Enrollment activity analysis: We provide detailed insights into plan participation and strategies for increased engagement.
• Master calendar: A custom calendar outlines the year’s key events and deadlines for plan sponsors.
• Plan sponsor website: Plan and account management are easy with this advanced platform, where sponsors can access customizable reports, participant information, and tools to tailor the participant experience to each organization’s individual brand.
• Plan sponsor reporting: Sponsors can also access a comprehensive, real-time reporting platform for detailed plan analysis and financial reporting.

We'll work together to create a tailored communications plan with a full spectrum of personalized messages to effectively promote the key benefits of nonqualified plans and maximize plan participation.

• Education, information, and motivation: Our communications aim to educate, inform, and inspire participants to take action. We start by providing materials that generate interest and awareness in the plan, followed by easy-to-understand enrollment kits that outline the plan’s details and investment options. We answer the most common questions and guide eligible participants through the enrollment process.
• Participant service center: Our team is ready to assist plan sponsors with inquiries, transactions, and investment information. Once participants are enrolled, they also have easy, convenient access to their accounts through our secure website and our toll-free call center.
• Online access: Our dynamic website provides plan participants with quick and easy account management tools, accessible from any device. The user-friendly interface focuses on retirement readiness and empowers participants to make informed financial decisions for their future.