Bank Owned Life Insurance (BOLI) is the predominant investment asset for financing the cost of employee benefit plans. Executive Benefits Network has helped hundreds of clients in successfully implementing and administering BOLI programs. Executive Benefits Network’s administrative support and compliance services include the following:

Implementation Services:

  • Analyze census data to determine potential BOLI program participants according to IRC Section 101(j) 
  • Determine the appropriate amount of BOLI premium
  • Prepare premium and death benefit allocations
  • Assist with insurance carrier evaluations and product selections
  • Participate or assist with Board presentations
  • Assist in preparing the OCC 2004-56 Pre-Purchase Analysis and documentation
  • Coordinate policy funding 
  • Coordinate and complete the consent process and all underwriting requirements
  • Prepare applications and other documentation required for policy issuance
  • Communicate underwriting offers and reallocate premiums if necessary
  • Review existing or new benefit agreement to determine if documents are in sync with Section 409A
  • Arrange Split Dollar Agreements if applicable
  • Deliver policies and BOLI Administration Manual covering all OCC 2004-56 compliance issues

Ongoing Administrative and Compliance Services:

  • Establish and document ongoing administration and service responsibilities with the BOLI program
  • Prepare cash value and income projections; confirm quarterly cash value balances from each carrier
  • Prepare and present Annual BOLI Risk Management Assessment in compliance with OCC 2004-56
  • Perform quarterly Social Security sweeps to identify possible deaths 
  • As deaths occur, file claims with the carrier(s) to facilitate payment of death benefits
  • Provide all FICA tax calculations and Value of Economic Benefit calculations as needed for split dollar plans

Custom Reporting Services:

  • Annual Post-Retirement Split Dollar Accounting
  • Annual Benefit Plan Administration for Supplemental Executive Retirement Program
  • Provide benefit expense accrual schedules
  • FICA reporting
  • Participant statements as needed
  • Additional Reports Requested by Client (outside of ongoing standard reporting)