What are the benefits of the TriscendNP CAP-EX PROGRAM over other executive benefit plans?

The TriscendNP Cap-Ex Program’s innovative structure, customized, unique product selection and unparalleled program administration make it the preferred alternative to traditional programs.Until the TriscendNP Cap-Ex Program was created, nonprofits were limited to corporate-style executive benefit plans that did not address their unique needs and nonprofit status advantages.

The TriscendNP Cap-Ex Program was designed to address the historical shortcomings of traditional benefit plans.

Traditional Executive Benefit Plans vs. TriscendNP Cap-Ex Program

Benefit Expense Transforms an expense into a growing asset
Permanent loss of capital Endows the organization with future cash recovery, which can include interest
Great public perception issues through Form 990 More favorable public perception of Form 990 reporting
Taxable to the participant upon vesting Advantaged retirement income; non-compensatory, providing more vesting options
Fixed plan with restrictions Flexible program that can be implemented with existing plans or as a replacement plan
One policy structure Two policy structure


What makes the TriscendNP CAP-EX PROGRAM unique from other executive benefit plans?

Historically, corporate style benefit structures used in executive benefit planning, such as SERPs or 457 (f) plans, have not fully appreciated the unique advantages of the nonprofit sector.

Only TriscendNP has the combined expertise in the insurance, financial services and consulting industries and the extensive experience working in the healthcare, higher education, credit union and nonprofit sectors to design reliable and responsible customized solutions addressing the five critical objectives common to all nonprofit organizations.

  • Provide the organization with a tool that will attract and retain stable, high quality leadership
  • More effectively balance the needs of the organization and the participant with respect to retirement income
  • Improve the stewardship of the organization’s financial resources
  • Enhance the organization’s financial position
  • Provide a more flexible and beneficial executive benefit structure for the executive

The TriscendNP Cap-Ex Program employs an innovative proprietary plan design that is consistent with IRS guidelines and addresses the historical shortcomings associated with traditional split-dollar plans such as poor plan administration and risk management.

The TriscendNP Cap-Ex Program is unique in two very important ways. First it utilizes a proprietary two-policy plan structure. Second, the program isn’t tied to using the products of only a single insurance company which may not be in the best interest of the client. Instead we customize product selection and source the products that are best suited to each individual plan.


How does TriscendNP differ from other providers?

We are not insurance peddlers. We are not obligated or incented to use any one product or insurance provider over another. We have relationships with many companies and select the product(s) that best suit each plan’s unique parameters. Unlike other providers, we do not use variable life insurance products as they have proven to be ineffective in successfully achieving reliable results.

What criteria does TriscendNP use when selecting providers?

We consider a combination of criteria when evaluating potential carriers and products to determine the best fit:

  • Ownership
  • Financial Strength
  • Product Portfolio
  • Client Services Capabilities and Orientation


How does the two-policy structure benefit the organization, the executive and the community?

The TriscendNP Cap-Ex Program transforms the way executive retirement benefits are provided while simultaneously returning hundreds of millions of dollars to the organizations in the nonprofit community that have implemented these plans. This customized, innovative solution benefits the organization, the executive and the community.

Grow Capital

  • Transforms benefit expenses into assets
  • Improves stewardship of financial resources
  • Returns funds, which can include interest, to the organization

Retain Talent

  • Attractive and flexible benefits solution
  • Vesting provisions that improve retention
  • Potential for greater and more reliable income at retirement

Serve Community

  • Improved bottom line provides additional resources to invest
  • Aligns financial incentives with an organization’s long term mission
  • More favorable perception of Form 990 reporting


How is the TriscendNP CAP-EX PROGRAM different from traditional split dollar plans?

Unlike traditional plans, the TriscendNP Cap-Ex Program is designed to return all funding dollars, which can include interest, back to the organization while providing the potential for greater retirement cash flow to the executive. The results are more consistent program performance and improved financial stewardship for the organization to better serve its community.

What sets us apart:

  • An innovative, custom two-policy design
  • A proprietary, equitable executive benefit program designed exclusively for the nonprofit sector
  • Proprietary “what if” modeling
  • Administration services that ensure the viability and the reliability of the plan over the long-term


How does the TriscendNP CAP-EX PROGRAM differ from the split dollar products of the past?

The TriscendNP Cap-Ex Program differs from traditional split dollar programs in several ways.

  • Focuses on delivering benefits to both the executive and the sponsoring organization by using an innovative, custom two-policy structure. It is a non-compensatory arrangement that is a loan, instead of income, that allows certain tax-exempt benefits to be implemented as part of the program design.
  • Plan design creates a growing asset for the organization rather than an expense and depending on the circumstances, it may, require less upfront capital than a traditional deferred compensation plan for the same retirement benefit.
  • Plan enables the executive to make tax-free withdrawals providing greater income potential during retirement.
  • Structure allows for high levels of customization to suit the unique objectives of the organization and the executive.
  • Plan is designed as a loan rather than direct compensation resulting in more favorable Form 990 reporting and enhancing public perception of the organization as one focused on responsible stewardship of assets and fulfilling its mission.


This product sounds too good to be true. Is it?

As long-term providers of non-qualified executive benefits for the nonprofit sector we understand the skepticism. Historically, the industry has not made product innovation a priority. This lack of innovation coupled with less than diligent oversight of the constantly evolving regulatory environment has resulted in many plans not performing as promised.

TriscendNP depth of industry experience and product innovation, coupled with our deep understanding of the unique challenges and opportunities in the nonprofit sector make us uniquely qualified to offer the finest non-qualified executive benefit plans in the market.

The TriscendNP Cap-Ex Program is designed to return all funding dollars, which can include interest, back to the organization while providing the potential for greater retirement income to the executive. The results are more consistent program performance and improved financial stewardship for the organization to better serve its community.


Why haven't I seen this product before? Why don't other companies have this product?

The TriscendNP Cap-Ex Program is a proprietary innovative solution. The design is based on our deep understanding of the nonprofit sector, our understanding of the allowances of IRS guidelines and the benefits inherent in nonprofit’s unique tax-exempt status. The program took years of research and development by a team of industry experts to refine the approach and ensure consistent results. The TriscendNP Cap-Ex Program is transforming the way nonprofit executive benefits are delivered.

Unlike traditional providers, TriscendNP Cap-Ex Program follows a proven 3-step approach to designing, implementing and overseeing the administration of each customized plan. This method ensures a thorough understanding of the unique challenges specific to each organization, and a plan design that addresses those needs and delivers reliable results.

  • Consultation & Design
  • Implementation
  • Administration

We expect that in time competitors will attempt to reproduce or copy our ground-breaking approach. We remain confident in our ability to continue to distinguish ourselves in the marketplace through our on-going commitment to innovation and delivering outstanding results to our clients.


How are the assumptions you make any better/different from those of other executive benefit plan solutions?

TriscendNP understands the challenges inherent in reconciling the competing objectives of an executive benefit plan that will serve the needs of the organization funding the plan and the executive it is meant to attract, retain and reward.

We begin each program with a comprehensive consultation to understand the executive’s and organization’s needs. Once those are established, we use historical financial models as a benchmark and practice using a prudent approach in the modeling and development of the program to allow us to achieve the soundness and safety of the plan.


How is your modeling different from that of other companies?

Only TriscendNP customizes every plan to ensure reliable outcomes for the organization, the executive and the community. After a comprehensive upfront consultation, TriscendNP performs rigorous, scientific analyses with a proprietary “what if” modeling tool to produce projections, illustrations and comparative analyses to ensure plan soundness and performance.

What is the monthly AFR that is used in the modeling?

The AFR is the minimum interest rate that avoids characterization of a below market loan. The rates are based on the yield to maturity of outstanding marketable obligations of the United States of similar maturities during the one month period ending on the 14th day of the month preceding the month for which the rates are applicable. The rates depend on the term of the obligation and are quoted on a short, mid and long-term basis.

Because the term of the majority of split dollar plans exceeds 9 years, the TriscendNP Cap-Ex Program typically uses the long-term AFR as the minimum interest rate charged by the organization on the loan for modeling purposes.


What happens if the Executive separates from the organization prior to the plan reaching full maturity?

Each TriscendNP Cap-Ex Program is completely custom designed to the unique needs and objectives of the client, therefore the outcome should a separation occur is contingent on the legal agreement and provisions for termination for that executive.

For example, in a scenario where a program calls for vesting after 5 years, should an executive leave at year 3, he/she would be 60% vested. The program design would require calling back funds from years 4 and 5 and that the outstanding obligation be repaid.


We have a SERP plan in place. How much will it cost to switch to the TriscendNP CAP-EX PROGRAM ?

We know from experience that often we are able to convert existing plans and their associated expenses into growing assets without incurring additional costs or needing to request additional funding from the organization’s board. That said, because each TriscendNP Cap-Ex Program is custom designed and unique, we would require a consultation to ascertain if there would be any fees associated with switching from an existing SERP plan. We’d welcome an opportunity to schedule a meeting to discuss your current plan, your organization’s unique needs and how TriscendNP Cap-Ex Program could benefit your organization.

Are there surrender charges associated with moving from an existing SERP plan to the TriscendNP CAP-EX PROGRAM ?

The first step in our process is to conduct a thorough assessment of the structure and provisions (including any associated surrender charges) of the existing plan and understand the organization’s needs and objectives. Once that analysis is complete, the TriscendNP team recommends a program structure to best meet those needs. In some cases that recommendation includes retaining the existing plan and avoiding any associated surrender charges. In others, the benefits of the new plan structure far out weigh any charges associated with making the change.

How are your administrative services different from what other companies offer?

Too often executive benefit plans are established and then placed on the shelf and forgotten. Of the failed or inefficient plans we have evaluated, the lack of monitoring and reporting has been a consistent issue affecting the condition and results of the plan.

Most providers use Human Resources departments to act as administrators of their executive benefit plans. These departments typically experience high turnover rates that impact the consistency and soundness of monitoring required to keep plans on track.

TriscendNP offers dedicated and unrivaled plan administration services to ensure plans stay on track and client needs are met. We are committed to consistently monitoring compliance, asset performance and pertinent regulatory developments. We hold annual meetings (more frequently, if needed) for each plan participant to review the program’s progress to date and review all questions and aspects of their plan. We are committed to the success of every program and understand that even the most well designed plan will not meet its objectives unless it is administrated properly. Click here for more information on the TriscendNP Administrative Services.


How do I learn more or schedule a meeting with the experts at TriscendNP ?

For a complimentary plan assessment or to learn more about TriscendNP and the TriscendNP Cap-Ex Program and how it can benefit your organization, contact us at:

1-855-882-2739

info@triscendnp.com
www.triscendnp.com

We welcome the opportunity to use our expertise to your benefit.

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