Employers & QPA's

HCE Class Parity Restoration

The Employer "Facilitator" and "Awareness" Role

HCE Parity Restoration

Comparable or greater short-term value as fund investing in a taxable brokerage account.
Comparable or greater long-term value as fund investing in a tax-qualified benefit plan.
Increased fund and cash management options.
Lifelong financial protection for your family.

The STAR Plan protects both short-term downside risk and lifelong upside potential.

HCE Parity Restoration Summary Examples ($10,000 after-tax equivalent contributions, 6%, 8% & 10% Market Returns):

Note the significant increases in STAR gains as you move to the higher market returns. This is because you and your family keep 100% of your incremental investment success with STAR - no sharing with Washington.

Male HCE Age 25 Female HCE Age 25

Male HCE Age 35 Female HCE Age 35

Male HCE Age 45 Female HCE Age 45

Male HCE Age 55 Female HCE Age 55

Male HCE Age 65 Female HCE Age 65

STAR equals Greater Cash Management Options.

HCE Gain-Loss Summaries - Ages 25-65, 6%, 8% & 10% The 401(k) has been the benchmark for financial comparison for 25 years. A collection of one-page gain-loss summaries at average life expectancy of STAR and other leading financial alternatives to the 401(k) using common financial assumptions.

Einstein and Mr. Spock were Right summarizes VVC's HCE Parity Restoration Summary Examples on both a Defined Contribution and Defined Benefit basis. Either way you analyze it - "Those expected to live the longest, win the most."

The STAR Plan^® allows you to facilitate financial parity to your HCE's on a career achievement and "good-news" basis.

A Workplace Convenience and Tax-Qualified Plan Complement

For Employers and their Qualified Plan Administrator (QPA)

Until The STAR Plan, it was impossible for tax-qualified benefit plan sponsors to fulfill their obligation to all their HCE's - an "equal and fair" workplace for those limited or capped in tax-qualified benefit plans.

HCE's had to:

Fend for themselves in the retail financial services marketplace.
Put their paycheck at risk in an unsecured nonqualified benefit plan (409A).

But behind the scenes - HCE life choices and medical science created the solution.

Medical science extending HCE longevity reduced ILI pricing so low that in 2002 ILI evolved from an institutional investment alternative into the ideal HCE fund management "structure".
Valley View Consultants, Inc. created the administrative platform and The STAR Plan to allow employers to fulfill that duty on an external basis - employers have better things to do than "sponsor" another benefit plan.

STAR facilitates the employers duty to their HCE's through a "pat-on-the-back and baton-pass" to VVC.

No employer “sponsorship” or “endorsements”.
Employers "facilitate" HCE awareness of their STAR qualification.
No costs, liabilities, DOL or ERISA considerations or administrative responsibilities.
No contribution requirements.
No compliance testing requirements.
No minimum participation requirements.
Optional tax-deductible incentive compensation or parity restoration contributions.
Cost savings ... STAR reduces the need for many of today’s supplemental “benefit” plans.
ILI is a time-test institutional fund management alternative.
Comfort that your HCE's are joining an established time-test professionally administered plan.
Risk management ... eliminate the potential liabilities associated with not making your HCE's STAR Aware.

The Result - An Equal Financial Opportunity Workplace

All employers can help their qualifying people become STAR Aware.

The STAR Plan is a workplace complement … a good-will communication recognizing the individuals whose career and life choices have made this level of financial efficiency possible.

STAR Due Diligence for employers, individuals and trustees. HCE's (earning $110,000+) represent a distinct benefit class between broad based and executive benefits. ILI has evolved into the ideal fund management structure for HCE's. The STAR Plan is an external HCE parity restoration plan so employers can deliver an equal and fair benefits workplace to all employees - with no additional costs, liabilities, ERISA considerations or administrative responsibilities.

STAR Due Diligence - Retail v Institutional Life Insurance for employers, individuals and trustees. Retail and Institutional Life Insurance are 180° opposites that share the IRC §7702 tax structure - designed for completely different purposes. This presentation reviews why retail life insurance is an unsuitable structure for cash management, where ILI is designed specifically for institutional fund, cash, tax and risk management.

The STAR Plan Solves HR's Ethical Dilemma with HCE's HR has an ethical responsibility to treat all employees fairly, but Government caps and inappropriate non-qualified parity restoration programs have made this almost impossible with HCE's. The STAR Plan was developed in 2002 in collaboration with HR professionals to solve all these problems.

The STAR Plan v. Employer Sponsored Benefits is a one page summary of the net "accessible" participant values of popular Employer Sponsored Benefit Plans and STAR assuming no plan caps or required distributions.

STAR v Nonqualified Deferred Compensation (NQDC) NQDC is outdated ... there is no financial advantage today for a STAR qualifying individual to risk their paycheck in an unsecured pre-tax savings program.

Would you pay $131,000 for a Medical Exam? That's the financial impact to the average STAR participant by life expectancy of guaranteed issued risk rates vs. taking a paramed nurse exam.

STAR "Longevity" Complement for Women is a two-page CEO summary of the STAR Complement to a 401(k) plan and how women benefit most because they live longer than men.

Employers can finally offer their people an equal financial opportunity workplace. No costs, liabilities or administrative requirements ... simply Career Recognition and Awareness.