Protect Nonqualified Deferred Compensation Assets.

Based on the questions from last month, we have expanded some of the content and will be having an open discussion at the end of the presentation.

The use of a secular trust to fund nonqualified executive pensions is increasing in prevalence due to market volatility and the uncertainty in these though economic times. Funding of nonqualified pension plans in a way that is both tax favorable and secure for the employee has been a focus of attention for many employers for a long time. A funding vehicle that has been used for many years by a number of major companies is a so-called "rabbi trust". The assets of a rabbi trust are subject to the claims of the employer's creditors and, because of that characteristic, many nonqualified participants feel a need to look to other alternatives for their wealth accumulation. The use of an old idea, the secular trust, has resurfaced with some very unique design features.

Mr. MacDonald will discuss the issues of benefit security, and the various features of the secular trust that are making these vehicles popular again.