In addition, in two separate block trades, Golub Capital Company VI LLC sold 64,000 shares to an investment vehicle for which GC Advisors serves as a sub advisor and sold 55,583 shares to Golub Capital Employee Grant Program Rabbi Trust
(the "Rabbi Trust
14) A so-called rabbi trust
(discussed below) does not violate the no formal funding requirement and does provide participants with some enhanced assurance that their benefits will be paid except in cases of the employer's legal insolvency or bankruptcy.
For example, an executive could have the choice to assign $100,000 of his deferred compensation funds to be invested in an 80%/20% stock/bond portfolio, and the company could place $100,000 in a Rabbi Trust
and invest the funds accordingly.
Deferred money can be placed into a dedicated account like a sinking fund or a Rabbi Trust
, a kind of grantor trust that is actually a TOLI.
A rabbi trust
is a security device for a deferred compensation plan for which an employer sets aside and contributes amounts to an irrevocable trust on behalf of one or more employees.
Under the defensive rabbi trust
plan, the group deposits the loan proceeds into a rabbi trust
The Department of Labor (DOL) does not consider a rabbi trust
arrangement to be funded for ERISA purposes solely because of the establishment and operation of a trust (DOL Advisory Opinion 89-22A).
Shares held by the Rabbi Trust
on 29 December 2005: 26,114,728 Shares held by the Rabbi Trust
on 30 December 2005 26,110,360 Movement: 4,368 Percentage of issued class in Rabbi Trust
on 30 December 2005: 1.
92-64(8) provided a model rabbi trust
that includes various options for trust design.
With considerable input from FEI and the business community, Thomas realized that the elimination of the rabbi trust
would have effectively eliminated deferred compensation programs altogether.
The effectiveness of a rabbi trust
is dependent on how it is funded and the strength of the trustee.
A rabbi trust
involves the use of an independent trust that protects the funds in this situation.