Split dollar programs have long been a standard component of the compensation and benefits package for key employees and professionals. However, in recent years, the costs and benefits of split dollar arrangements have been significantly impacted by a number of legislative, regulatory, tax and accounting changes. In general, these changes have reduced the benefits to participants and increased the cost to the plan sponsor.
The objective of this study was to gain a better understanding of what plan sponsors have done in response to these changes. Whether they have chosen to terminate, re-design or replace the plans they sponsor.