Reward and retain key executives Executive Benefits Planning ©2014 Voya Services Company. All rights reserved. CN

Do not put content on the brand signature area ©2014 Voya Services Company. All rights reserved. CN Disclosures  The Voya™ Life Companies and their agents and representatives do not give tax or legal advice. This information is general in nature and not comprehensive, the applicable laws change frequently, and the strategies suggested may not be suitable for everyone. You should seek advice from your tax and legal advisors regarding your individual situation.  These materials are not intended to be used to avoid tax penalties, and were prepared to support the promotion or marketing of the matter addressed in this document. The taxpayer should seek advice from an independent tax advisor.  Life insurance products are issued by ReliaStar Life Insurance Company, ReliaStar Life Insurance Company of New York (Woodbury, NY) and Security Life of Denver Insurance Company. Within the state of New York, only ReliaStar Life Insurance Company of New York is admitted, and its products issued. All companies are members of the Voya™ family of companies.

Do not put content on the brand signature area ©2014 Voya Services Company. All rights reserved. CN Today’s competitive business environment  Business owners today are faced with increased competition for talented key executives  Traditional compensation strategies fail: –Short-lived impact –Tax law changes

Do not put content on the brand signature area ©2014 Voya Services Company. All rights reserved. CN Executive benefits objectives  Executives want to: –Reduce tax burden and defer taxation of income until the income is actually needed  Employers want to: –Provide executives with incentives to remain with the company

Do not put content on the brand signature area ©2014 Voya Services Company. All rights reserved. CN Uses for nonqualified plans Nonqualified plans can be used:  To recruit, retain, and reward key Executives  To counter “reverse-discrimination”  To provide income tax-deferral for Executives  To act as “Golden Handcuffs”  To recruit, retain, and reward outside board members

Do not put content on the brand signature area ©2014 Voya Services Company. All rights reserved. CN Nonqualified plans are flexible  Qualified Plans: –Contribution limits –Must be non-discriminatory –Funding & reporting requirements –Penalties for early distributions  Nonqualified Plans: –No contribution limits –Can be offered selectively –Minimal reporting requirements –No penalties for early distributions

Do not put content on the brand signature area ©2014 Voya Services Company. All rights reserved. CN Customize NQDC plans Select Plan Design Based on Mutually Desired Features

Do not put content on the brand signature area ©2014 Voya Services Company. All rights reserved. CN Alternative plan designs  NQDC or SERP Arrangements  Split Dollar Loan Arrangements  NQDC/Split Dollar Combo Arrangements  Endorsement Split Dollar Arrangements  Survivor Income DBO Arrangements  Executive Bonus (§ 162) Arrangements  Restricted Executive Bonus Arrangements (REBAs)

Do not put content on the brand signature area ©2014 Voya Services Company. All rights reserved. CN Factors to consider  Deferral of Income Taxation

Do not put content on the brand signature area ©2014 Voya Services Company. All rights reserved. CN Factors to consider  Deferral of Income Taxation  Current Tax Deduction

Do not put content on the brand signature area ©2014 Voya Services Company. All rights reserved. CN Factors to consider  Deferral of Income Taxation  Current Tax Deduction  Supplemental Retirement Income

Do not put content on the brand signature area ©2014 Voya Services Company. All rights reserved. CN Factors to consider  Deferral of Income Taxation  Current Tax Deduction  Supplemental Retirement Income  Protection from Employer’s Creditors

Do not put content on the brand signature area ©2014 Voya Services Company. All rights reserved. CN Factors to consider  Deferral of Income Taxation  Current Tax Deduction  Supplemental Retirement Income  Protection from Employer’s Creditors  “Golden Handcuffs”

Do not put content on the brand signature area ©2014 Voya Services Company. All rights reserved. CN Factors to consider  Deferral of Income Taxation  Current Tax Deduction  Supplemental Retirement Income  Protection from Employer’s Creditors  “Golden Handcuffs”  Income Tax-Free Retirement Distributions* *Income tax free distributions are achieved by withdrawing to the cost basis (premiums paid) then using policy loans. Loans and withdrawals may generate an income tax liability, reduce available cash value and reduce the death benefit or cause the policy to lapse.

Do not put content on the brand signature area ©2014 Voya Services Company. All rights reserved. CN Factors to consider  Deferral of Income Taxation  Current Tax Deduction  Supplemental Retirement Income  Protection from Employer’s Creditors  “Golden Handcuffs”  Income Tax-Free Retirement Distributions*  Flexibility *Income tax free distributions are achieved by withdrawing to the cost basis (premiums paid) then using policy loans. Loans and withdrawals may generate an income tax liability, reduce available cash value and reduce the death benefit or cause the policy to lapse.

Do not put content on the brand signature area ©2014 Voya Services Company. All rights reserved. CN Factors to consider  Deferral of Income Taxation  Current Tax Deduction  Supplemental Retirement Income  Protection from Employer’s Creditors  “Golden Handcuffs”  Income Tax-Free Retirement Distributions*  Flexibility  Income Tax-Free Death Benefits *Income tax free distributions are achieved by withdrawing to the cost basis (premiums paid) then using policy loans. Loans and withdrawals may generate an income tax liability, reduce available cash value and reduce the death benefit or cause the policy to lapse.

Do not put content on the brand signature area ©2014 Voya Services Company. All rights reserved. CN Factors to consider  Deferral of Income Taxation  Current Tax Deduction  Supplemental Retirement Income  Protection from Employer’s Creditors  “Golden Handcuffs”  Income Tax-Free Retirement Distributions*  Flexibility  Income Tax-Free Death Benefits  Cost Recovery *Income tax free distributions are achieved by withdrawing to the cost basis (premiums paid) then using policy loans. Loans and withdrawals may generate an income tax liability, reduce available cash value and reduce the death benefit or cause the policy to lapse.

Do not put content on the brand signature area ©2014 Voya Services Company. All rights reserved. CN Factors to consider  Deferral of Income Taxation  Current Tax Deduction  Supplemental Retirement Income  Protection from Employer’s Creditors  “Golden Handcuffs”  Income Tax-Free Retirement Distributions*  Flexibility  Income Tax-Free Death Benefits  Cost Recovery  ERISA or “Top Hat” Limitations *Income tax free distributions are achieved by withdrawing to the cost basis (premiums paid) then using policy loans. Loans and withdrawals may generate an income tax liability, reduce available cash value and reduce the death benefit or cause the policy to lapse.

Do not put content on the brand signature area ©2014 Voya Services Company. All rights reserved. CN Factors to consider  Deferral of Income Taxation  Current Tax Deduction  Supplemental Retirement Income  Protection from Employer’s Creditors  “Golden Handcuffs”  Income Tax-Free Retirement Distributions*  Flexibility  Income Tax-Free Death Benefits  Cost Recovery  ERISA or “Top Hat” Limitations  Ease of Administration *Income tax free distributions are achieved by withdrawing to the cost basis (premiums paid) then using policy loans. Loans and withdrawals may generate an income tax liability, reduce available cash value and reduce the death benefit or cause the policy to lapse.

Do not put content on the brand signature area ©2014 Voya Services Company. All rights reserved. CN Factors to consider  Deferral of Income Taxation  Current Tax Deduction  Supplemental Retirement Income  Protection from Employer’s Creditors  “Golden Handcuffs”  Income Tax-Free Retirement Distributions*  Flexibility  Income Tax-Free Death Benefits  Cost Recovery  ERISA or “Top Hat” Limitations  Ease of Administration  Balance Sheet Impact *Income tax free distributions are achieved by withdrawing to the cost basis (premiums paid) then using policy loans. Loans and withdrawals may generate an income tax liability, reduce available cash value and reduce the death benefit or cause the policy to lapse.

Do not put content on the brand signature area ©2014 Voya Services Company. All rights reserved. CN NQDC & SERP Arrangements  Employer promises Executive future benefit (defined contribution or defined benefit)  Employer informally funds promise by purchasing life insurance policy on Executive  At retirement, or at death, Executive receives promised benefit  Arrangement is subject to IRC § 409A

Do not put content on the brand signature area ©2014 Voya Services Company. All rights reserved. CN NQDC & SERP Arrangements EmployerExecutive 2 Voya Life Companies 3 4 NQDC or SERP Agreement 1 5

Do not put content on the brand signature area ©2014 Voya Services Company. All rights reserved. CN NQDC & SERP Arrangements Advantages  Tax deferral for Executive  Provides source of supplemental retirement income  “Golden Handcuffs”  Cost recovery available to Employer Disadvantages  Subject to § 409A rules  Retirement benefits subject to income taxes  Funding asset is subject to claims of Employer’s creditors  Timing of payments must be “fixed” when plan is adopted; no flexibility  Death benefit paid to Executive’s survivors subject to income tax*  Subject to ERISA “Top Hat” limitations * The parties could use a split-dollar arrangement to make the death benefits income tax-free. However, economic benefits of the arrangement would create a current tax liability.

Do not put content on the brand signature area ©2014 Voya Services Company. All rights reserved. CN Split Dollar Loan Arrangements  Executive purchases life insurance policy  Employer pays policy premiums and retains collateral assignment  At retirement, Executive reimburses Employer for premiums paid  Policy’s cash values available to Executive as supplemental retirement income

Do not put content on the brand signature area ©2014 Voya Services Company. All rights reserved. CN Split Dollar Loan Arrangements EmployerExecutive Split Dollar Agreement 1 2 Voya Life Companies 4 3

Do not put content on the brand signature area ©2014 Voya Services Company. All rights reserved. CN Split Dollar Loan Arrangements Advantages  May provide a source of supplemental retirement income  Not subject to claims of Employer’s creditors  Tax-preferred retirement benefits  Flexibility on timing of distributions  Death benefit not taxable as income*  Not subject to ERISA “Top Hat” rules Disadvantages  Imputed Interest taxed as income to Executive  Limited cost recovery available to Employer *Proceeds from a life insurance policy are generally income tax-free.

Do not put content on the brand signature area ©2014 Voya Services Company. All rights reserved. CN Endorsement Split Dollar Plans  Employer promises benefit to Executive’s survivors upon his or her death  Employer purchases Life Insurance to fund promised benefit  Executive taxed annually on “economic benefit” or “term costs”  Death benefit is received by Executive’s beneficiaries income tax-free* * Proceeds from an insurance policy are generally income tax free, and if properly structured, may also be free from estate tax.

Do not put content on the brand signature area ©2014 Voya Services Company. All rights reserved. CN Endorsement Split Dollar Plans EmployerExecutive 2 Voya Life Companies 2 3 Split Dollar Agreement 1 3 IRS

Do not put content on the brand signature area ©2014 Voya Services Company. All rights reserved. CN Endorsement Split Dollar Plans Advantages  Cost recovery available to Employer  Avoids ERISA and “Top-Hat” limitations  Simple plan administration  Death benefit received by Executive’s survivors income tax-free* Disadvantages  No supplemental retirement income provided  No “Golden Handcuffing * Proceeds from an insurance policy are generally income tax free, and if properly structured, may also be free from estate tax.

Do not put content on the brand signature area ©2014 Voya Services Company. All rights reserved. CN Survivor Income DBO Plans  Employer promises benefit to Executive’s survivors upon his or her death  Employer purchases Life Insurance to fund promised benefit  Death benefit is taxable to Executive’s beneficiaries as Income in Respect of a Decedent (“IRD”)

Do not put content on the brand signature area ©2014 Voya Services Company. All rights reserved. CN Survivor Income DBO Plans EmployerExecutive Voya Life Companies 2 DBO Agreement 1 3 4

Do not put content on the brand signature area ©2014 Voya Services Company. All rights reserved. CN Survivor Income DBO Plans Advantages  Cost recovery available to Employer  Not subject to ERISA and “Top-Hat” limitations  Simple plan administration Disadvantages  No supplemental retirement income provided  No “Golden Handcuffing”  Death benefit paid to Executive’s survivors is taxable income

Do not put content on the brand signature area ©2014 Voya Services Company. All rights reserved. CN Executive Bonus Plan  Employer makes premium payments on cash value life insurance policy owned by Executive  Premium Payments treated as taxable income to Executive  Executive uses policy as source of retirement supplemental income  Policy provides Executive a death benefit

Do not put content on the brand signature area ©2014 Voya Services Company. All rights reserved. CN Executive Bonus Plan EmployerExecutive 1 2 Voya Life Companies 4 3

Do not put content on the brand signature area ©2014 Voya Services Company. All rights reserved. CN Executive Bonus Plan Advantages  Not subject to ERISA  Not subject to NQDC rules  Supplemental retirement income  Flexibility on timing of payments  Death benefit not taxable as income*  Not subject to Employer’s creditors Disadvantages  Immediate taxation to Executive  No “golden handcuffs”  No cost recovery available to Employer * Proceeds from an insurance policy are generally income tax free, and if properly structured, may also be free from estate tax.

Do not put content on the brand signature area ©2014 Voya Services Company. All rights reserved. CN Restricted Executive Bonus Arrangement (REBA)  Employer makes taxable premium payments on cash value life insurance policy owned by Executive  Premium payments treated as taxable income to Executive  Employer and Executive execute restrictive endorsement to policy  Executive uses policy as source of supplemental retirement income  Policy provides Executive a death benefit

Do not put content on the brand signature area ©2014 Voya Services Company. All rights reserved. CN EmployerExecutive 1 2 Voya Life Companies 5 4 Restrictive Endorsement 3 Restricted Executive Bonus Arrangement (REBA)

Do not put content on the brand signature area ©2014 Voya Services Company. All rights reserved. CN Advantages  Not subject to ERISA  Not subject to NQDC rules  Supplemental retirement benefits  “Golden Handcuffs”  Flexibility on timing of payments  Death benefit not taxable as income*  Not subject to Employer’s creditors Disadvantages  Immediate taxation to Executive  No cost recovery available to Employer * Proceeds from an insurance policy are generally income tax free, and if properly structured, may also be free from estate tax. Restricted Executive Bonus Arrangement (REBA)

Do not put content on the brand signature area ©2014 Voya Services Company. All rights reserved. CN The Executive Benefits Wizard can help identify a plan design that works for you.

Do not put content on the brand signature area ©2014 Voya Services Company. All rights reserved. CN Executive Benefits Wizard

Do not put content on the brand signature area ©2014 Voya Services Company. All rights reserved. CN Ask for a proposal customized to fit your situation. Your Voya representative can show how these ideas might work for you.