Services


Reliably Solving Benefit Liability Funding Issues

Westport specializes in the review, design, implementation, communication, and long-term administration of nonqualified and employee benefit plan assets. On a daily basis, Westport strives to provide the highest level of service, support, and responsiveness to plan sponsors for their plan funding strategies.

Westport, with its collective resources, expertise, and knowledge, has developed and delivered effective and timely solutions for the funding challenges faced by our clients. As experienced funding strategists, the professionals at Westport are able to provide corporate funding solutions that frequently offer companies multiple advantages—

  • funding can afford companies the confidence to establish employee benefit plans;
  • funding can offer employees attractive plans that build employee loyalty;
  • funding can benefit shareholders by positively impacting financial statements; and
  • funding existing programs properly, versus reducing an employee’s benefits, can position a company to compete better in the world economy.

Although the funding solutions Westport designs are customized to meet the particular requirements unique to each client, there are certain types of funding that generally meet the needs of specific sectors of the business community.

Corporate Owned Life Insurance (COLI)

Over the years, Corporate Owned Life Insurance has become the preferred informal funding option for nonqualified deferred compensation plans that many companies have established for their executives. During this time, our professionals have developed a disciplined, highly effective program for evaluating, selecting, brokering, administering, and monitoring COLI programs and their underlying investment options. Whether a client is considering establishing a new nonqualified deferral plan or updating an existing plan, the Westport team can call on its years of COLI experience to develop a solution that allows the client to maintain its financial and investment objectives while meeting its financial and fiduciary obligations.

Bank Owned Life Insurance (BOLI)

Bank Owned Life Insurance is a form of funding for employee and executive benefit plans that is tailored to meet the distinctive needs of the financial community. BOLI expertise is essential to providing the ideal funding strategy because the detailed nature of BOLI, its complex regulatory issues, and its distinctive financial concerns present a unique challenge to all but the most experienced BOLI professionals. Westport strategists have this experience, and the boutique nature of our firm lends itself to keeping prices low while providing our clients with exceptional service and products.

Insurance Owned Life Insurance (IOLI)

Insurance Owned Life Insurance is an institutionally priced life insurance product owned by an insurance company and used to informally fund a wide variety of employee liabilities. It also is used to fund specified benefit obligations, such as DCPs, SERPs and employee death benefits. IOLI can take a variety of forms, depending on the liabilities being funded, the size of the transaction and the type of insurance-eligible investment option(s) desired. Westport works with you and a select group of insurance carriers to maximize the benefit of IOLI programs.

Trust Owned Life Insurance (TOLI)

Trust Owned Life Insurance is BOLI, COLI or IOLI owned by a trust rather than by a bank, corporation or insurance company. Often, the programs implemented by Westport’s professionals involve trust ownership.

Trust Owned Life Insurance (TOLI) and Other Postretirement Employee Benefit (OPEB) Liabilities

Several developments in the regulatory, tax, and legal worlds have converged to make the funding of Other Postretirement Employee Benefit (OPEB) liabilities a viable and financially attractive use of capital for many corporations. As a result, these corporations have begun using Trust Owned Life Insurance (TOLI) within a Voluntary Employee Benefit Association (VEBA) to fund the growing corporate debt associated with benefit plans (such as those covering retiree healthcare). OPEB funding strategies draw upon the actuarial, investment, and human capital disciplines; and Westport has dedicated, professional resources with considerable experience in each of these areas. With this experience, our expertise and market leadership, we can develop OPEB funding alternatives that may increase corporate earnings per share and improve balance sheet debt ratios.

Mutual Funds

Mutual funds and other investments may be used to informally fund DCPs, SERPs and VEBAs. The focus is on investments that provide consistent returns over time, with acceptable volatility and reasonable tax efficiency so that the economics of the funding assists in the hedging of the liability and the cost effectiveness of the plan being funded. Westport offers an open platform for companies interested in utilizing mutual funds in conjunction with their insurance programs to fund benefit related liabilities.

Summary

A comprehensive executive benefit program is essential to attracting and retaining the top executives who will have the biggest impact on your company’s long-term growth, stability, and profitability. Providing these programs cost efficiently is essential to their longevity as well as to increasing shareholder value.

At Westport, we are committed to helping you find and implement the appropriate funding strategy.

All members of the Westport client teams embrace and value the importance of establishing and preserving strong, long-term relationships with our clients. We look forward to building such a relationship with you.