Partnering with you in complying with the changing fiduciary environment

Business Solutions

BOLI Compliance

BOLI Compliance Overview

Regulatory guidelines require that banks complete a thorough analysis of a contemplated BOLI purchase prior to the purchase, as well as an ongoing review and due diligence of the holdings to ensure continued compliance throughout the period that the BOLI assets are held by the bank.

Our Compliance services assist the bank management in all aspects of the compliance process including:

  • A pre-purchase analysis of all BOLI assets acquired by the bank in conformity with the regulatory guidelines
  • Documentation of the pre-purchase analysis
  • Continued compliance with regulatory and tax rules after the purchase

BOLI Compliance – Pre-Purchase Analysis

  • Regulatory guidelines require that banks satisfy each of the specific steps prior to the purchase of BOLI.
  • Identify the need for insurance, determine the economic benefits, and document the selection of the appropriate type of life insurance product
  • Quantify the amount of insurance appropriate for the bank’s objectives
  • Assess vendor qualifications
  • Review the characteristics of the available insurance products
  • Select the carrier or carriers
  • If the insurance results in additional compensation to the insured employee/director we determine that the compensation is reasonable
  • Analyze the risks of the BOLI purchase and the ability of the bank to monitor those risks
  • Evaluate alternatives
  • Document decision

Compliance – Ongoing Reporting

  • Regulatory guidelines require that banks continue to monitor the BOLI asset and associated risks after the purchase. A compliance set of reports that address the tax, accounting, and compliance reporting are provided;
  • Calculation and reporting of executive/ director benefit in accordance with proper accounting practices (FASB 106 and 87)
  • Report BOLI asset values in accordance with accounting and tax requirements (Form 8925) added by the Pension Protection Act of 2006
  • BOLI review for performance, risk, and compliance (OCC Interagency Bulletin 2004-56)

Retirement Planning & Consulting

Partnering with you in complying with the changing fiduciary environment.
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Fiduciary Plan Services

Our firm members are professional consultants that serve as fiduciaries for our clients’ plans.
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Bank Owned Life Insurance (BOLI)

The key component of our process is to identify the purpose of the BOLI holding and insure that assets held are in alignment with the goals and objectives of the bank management.
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Employee Stock Ownership Plans

An ESOP (Employee Stock Ownership Plan) is a tax-qualified employee benefit plan that can also be used to provide benefits for the sponsoring company and its ownership.
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Deferred Compensation & Executive Benefits

Executive benefit programs are used to properly compensate, reward success, and eliminate gaps for key personnel.
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