Defined Benefit Plan Substitute
                              (for C-Corporations )

If you are affiliated with a C-Corp we can help you retain and reward your key talent and improve your balance sheet at the same time. Would you please consider several important questions?


Questions to Consider:

  1. Is retaining your key talent a primary component for continuing the growth and success of your company? Are you offering anything truly meaningful to your executives which would differentiate you from your competitors and tie them to the company for the next 5 years? 

  2. If you could emulate a defined benefit plan for half the cost, eliminate its disadvantages and regulations, and both the employee and employer contributions would be treated as an asset on the books earning interest instead of an expense, would this appeal to you?

  3. What if contributions were only for a five-year period, thereby negating any corporate long-term liability, and it generated 100-200% more retirement income for the same dollar contribution than any other type of retirement plan, wouldn't that be attractive for both the executive and the company?

  4. What if you could discriminate and pick just your key people, and you could even have different tiers with different benefit levels? Shouldn't you spend a little time taking a closer look?


What, Historically, Was the Best Retention Tool…EVER!!     The Defined Benefit Plan

Many Companies Offered a DB plan . . . But Why?

  • Employees stayed 30-40 years to get it.

  • Companies wanted to reward a lifetime of work. (Initially created for veterans of the Revolutionary War).

  • It’s quite attractive to possibly get 60% of your final salary for life

  • Companies could control the investment.

Why Has The DB Plan Fallen Out of Favor?


  • Got too expensive (actuarily).

  • Corporate liability became excessive.

  • Administrative costs became prohibitive.

  • Complexity of the plan often required an administration or CPA firm to manage the plan.

  • Increased salaries increased future obligations.

  • Required that all eligible employees participate.


 What Were The Unintended Consequences?


  • Companies terminated DB plans in lieu of Defined Contribution Plans - 401(k).

  • Companies offered small matching contributions to avoid having Top-Heavy plans, in an attempt to help the highly paid employees.

  • Employees Could Not/Did Not contribute enough to achieve, even close to, the same result.

  • Employees were forced to switch companies to look for higher salaries and benefits.

What Retention Tools are Currently Being Used Today by C-Corporations?

  • 401(k) / 403(b)

  • Health Insurance

  • Long-Term Disability

  • Deferred Compensation/457/ESOP

  • Bonus Plans


Unfortunately, all of these are Large Expenses for the company, and provide No Differentiation from a Competitor

What's the End Game? How to Differentiate you from your competitors by adding something of such value that your key people won't want to leave.

Value for the C-Corp:

The corporation is providing a better retention tool (probably a minimum of 5 years), while at the same time earning substantial interest on assets they never had . (3% to 6% per year or more for possibly 30 years+) 

All without all the downside of the DB Plan!


Value for the Employee:

1.Pre-tax contributions.

2.Corporate matching.

3.3-1 bank leverage.

4.Growth tied to the market with no downside interest rate risk.

5.Tax free retirement income.

6.Substantial Life Insurance.

7.Living Benefits (Critical, chronic, accident and terminal illness).

If you'd like to learn a bit about me, please visit our Personal page

Please contact me to schedule some time to discuss your current situation and objectives, as well as the details of this exciting and innovative program.