Corporate Compensation Plans, Inc.

Employers

HOW DO WE CONTINUE CONTRIBUTIONS TO OUR EMPLOYEES’ RETIREMENT PLANS WHEN THEY BECOME DISABLED?

The biggest threat to your employees’ retirement security is not the investment performance of their funds –it is a pre-retirement disability.

The reason: contributions to your employees’ qualified and nonqualified retirement plans stop when they become disabled. As a result, they can suffer severe losses in their projected retirement benefits at age 65 – the very time when payments to them from their disability insurance plans usually end. For example:

Annual Retirement Plan Contributions:		$15,000	$45,000	$105,000*
Loss at age 65 at 6.5% interest if disability occurs at age:
	40	$ 833,315	$2,499,000	$6,183,200
	45	$ 582,380	$1,747,100	$4.076,600
	50	$ 362,700	$1,088,190	$2,539,100
	55	$ 202,400	$ 607,200	$1,416,800
	60	$ 85,400	$ 256,200	$ 597,800

*Includes nonqualified plans.

This serious threat to your employees’ retirement security can be eliminated by using one, or both, of these special disability insurance plans:

A voluntary disability plan that will continue amounts equal to employee and employer qualified retirement plan contributions into a trust when they become disabled. The insurance can be provided on a guaranteed issue basis and the employee cost can be the same as if the premiums were paid from the 401k plan on a pre-tax basis.

A voluntary disability plan that will continue employee and employer contributions into their nonqualified deferred compensation plans when they become disabled. This plan is completely cost and cash-flow neutral to the employer and does not have any accounting impact on its financial statements.

Disability benefits of up to $200,000 a year can be provided to fund these programs and CCP will perform all of the communication, enrollment, and administrative tasks.

If you would like to receive our Special Report, How to Eliminate the Disability Threat to your Employees’ Retirement Plans click here.