About Us

Q: What are the different types of SERPs?

457(f) – This type of plan is essentially a bonus based on time. The organization can hand select which employees they choose to include in this type of plan. Unlike qualified plans like 403(b)/401(k) where both employer and employee can contribute with limits or a 457(b) which also has limits similar to the 401(k), with a 457(f), there are no limits set by the IRS, but there is a reasonableness standard that should be considered (NCUA). Split Dollar – A split dollar plan is based on a secured loan from the credit union to the executive to purchase a life insurance policy. The Credit Union has a first lien on the life insurance policy similar to a mortgage on a house. Properly designed these plans provide non-taxable distributions to the executive during retirement, or at other intervals, with the credit union/non-profit recovering all funds invested into the plan, plus interest. Either type of plan is completely customizable; there is no one size fits all approach.

WHO WE ARE

Experience You Can Count On

We are OM Financial Group. We provide competitive and cost-effective employee benefit solutions for non-profit organizations, specifically credit unions, hospitals, and universities. We use our decades of experience and unique perspective to maximize the advantages afforded to these institutions, due to their non-profit status. We do so by helping to reduce employee benefit expenses while also providing substantial benefits to their key employees through Supplemental Executive Retirement Plans (SERPs), particularly Collateral Assignment Split Dollar (CASD) plans. Our experience gives us the understanding and knowledge to provide thoughtful advice and strategic guidance to clients across the country.

We believe that a relationship-driven approach ensures we fully understand your needs and are able to provide the best advice for your unique situation. Our goal is to first educate all those involved by sharing the tools and information needed to make informed strategic decisions that are in the best interest of your organization today and for years to come.

Since we opened our first office in Rhode Island over 20 years ago, we have garnered a reputation for excellence and integrity. We have experienced significant growth and today provide services to hundreds of non-profit organizations with benefit consultants nationwide with our headquarters in Boston, Massachusetts.

20+

Years of Experience

400+

Clients

1,000+

Successful Audits

WHAT WE DO

We help you recruit, reward and retain top talent.

You almost certainly know how important it is — and how difficult it can be — to recruit, reward and retain (Golden Handcuffs) the best talent in your industry. That’s where we come in. Our experience and ingenuity enables you to offer a variety of benefit plans to achieve those goals while also positively impacting your organization’s financial metrics and long term stability.

Our cost effective and mutually beneficial plans allow your organization to provide a substantial tax-preferred retirement benefit to the plan participant, while simultaneously strengthening the financial health of your organization.

Even if you have the four fastest runners in a relay race, if you drop the baton once in the handoff, you will fall behind your competitors. The same issue exists in succession planning. The transition from one leader to the next is essential to a continued pattern of growth, and ultimately, to the long-term success of your organization. To ensure this transition is as seamless as possible, OM can advise your organization in the strategic use of a SERP.

As an OM client, you’ll receive a fully customized plan to fit the specific needs of the plan participant and organization. We greatly value our long-term client relationships and we will continue to be a resource for as long as our plan is active. We will also fully evaluate any plans previous put in place, even if those plans are with a different provider. By using this approach, we are able to provide the best recommendations that will align with your organization’s strategies.

HOW WE ARE DIFFERENT

At OM, we pride ourselves on the values of radical responsiveness, integrity, and commitment to providing the best advice for all our clients.

Our mission is to equip executives and board members to make fully informed decisions when evaluating, implementing, and overseeing reward and retention programs. We understand these are long-term relationships, therefore, we become a long-term partner with regard to strategic succession planning. This commitment drives us to offer continuous guidance on plan options and to provide perpetual service throughout our relationship as your SERP provider.

Are You Ready to Take the Next Step?

Contact us today to connect with one of our Executive Benefits Consultants to schedule your complimentary consultation.

Frequently Asked Questions

What is a Supplemental Executive Retirement Plan (SERP)?2023-04-22T17:58:34-04:00

What is a Supplemental Executive Retirement Plan (SERP)?

A SERP is a non-qualified supplemental retirement plan that’s meant to enhance an executive’s retirement benefit. While a 401(k) and 457(b) have strict contribution limits, a SERP (457(f) or Split Dollar) is flexible in the amount that may be provided to the executive with no imposed limits.

A SERP makes sense for retaining and/or rewarding valuable executives. SERPs continue to grow in popularity as the war on talent continues to become more competitive. SERPs help credit unions and other non-profit boards ensure that their top executives succeed financially in retirement and are not wooed away to another institution.

SERPs allow organizations to successfully attract and retain key executives. Ultimately, SERPs are a tool that can be utilized to create predictable transitions from current to future leaders while ensuring long term business success and profitability by avoiding unexpected turnover.

Why should your non-profit organization consider a SERP?2023-05-31T17:05:46-04:00

Why should your non-profit organization consider a SERP?

There are 3 reasons driving the implementation of a SERP: Reward, Retention and filling the gap due to limits on qualified retirement programs commonly called a Restoration plan.

Reward occurs when you have an executive that has done a great job and you want to do more to recognize his/her positive impact on the organization. In addition, it is also an important component of a compensation strategy that matches long term performance with financial reward.

Retention utilizes the term, “Golden Handcuffs,” the premise being when the executive feels he/she can succeed financially while working for you, there is no reason to look elsewhere.

Traditional retirement plans such as 401k’s, pensions and social security have limits and are progressive in nature. These limits restrict the amount an executive can save in a tax deferred manner, negatively impacting their ability to replace their income in retirement. These types of plans are typically called restoration plans.

What are the different types of SERPs?2023-04-22T18:01:25-04:00

What are the different types of SERPs?

457(f) – This type of plan is essentially a bonus based on time. The organization can hand select which employees they choose to include in this type of plan. Unlike qualified plans like 403(b)/401(k) where both employer and employee can contribute with limits or a 457(b) which also has limits similar to the 401(k), with a 457(f), there are no limits set by the IRS, but there is a reasonableness standard that should be considered (NCUA).

Split Dollar – A split dollar plan is based on a secured loan from the credit union to the executive to purchase a life insurance policy. The Credit Union has a first lien on the life insurance policy similar to a mortgage on a house. Properly designed these plans provide non-taxable distributions to the executive during retirement, or at other intervals, with the credit union/non-profit recovering all funds invested into the plan, plus interest.

Either type of plan is completely customizable; there is no one size fits all approach.

What is the first step if we want to learn more?2023-05-04T17:16:37-04:00

What is the first step if we want to learn more?

We believe the ideal first step is to attend one of our free, weekly educational webinars or to schedule a meeting with one of our consultants. Once there is an understanding of the basics, we can provide a benefit analysis for executives under consideration or simply review a current plan with no obligation.

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