The S.O.L.A.R. Plan. Do not put content on the brand signature area Orange RGB= 255,102,000 Light blue RGB= 180,195,225 Dark blue RGB= 000,000,102 Grey

The S.O.L.A.R. Plan

For agent/registered representative use only. Not for use with the public. cn66671122012

© 2010 ING North America Insurance Corporation2

Disclosures

• The ING 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. Each taxpayer should seek advice from his or her tax and legal advisors regarding their individual situation.

• These materials are not intended to and cannot be used to avoid tax penalties; and they were prepared to support the promotion or marketing of the matter addressed in this document. Each taxpayer should seek advice from an independent tax advisor.

• ING Indexed Universal Life - Global Plus (ING IUL-Global Plus), policy form series #1182-12/10 with an equity indexed feature, varies by state and may not be available in every state. It is issued by Security Life of Denver Insurance Company, a member of the ING family of companies. Not available in New York. The index cap and index participation rate are subject to change for new index blocks. All guarantees are based on the financial strength and claims paying ability of Security Life of Denver Insurance Company which is solely responsible for the obligations under its own policies.

• Policy loans and withdrawals may reduce or eliminate index credits, generate an income tax liability, reduce available surrender value and reduce the death benefit, or cause the policy to lapse. Additionally, loans may limit the ability to make elections to the Indexed Strategy; if a loan results in amounts being deducted from a block prior to its block maturity date, no elections from the Fixed Strategy to the Indexed Strategy will be processed in the 36 months following the loan.



Employees Are Facing Retirement Crisis

“The key sources of income retirees are relying on are either under attack, in the case of Social Security, or disappearing,

in the case of traditional pensions.”

- Ross Eisenbrey, VP of Economic Policy Institute

Source: “U.S. Retirement Deficit Reaches $6.6 Trillion,” Laura Bassett, Huffington Post (9/16/2010)



Growing Retirement Deficit

According to a study by Boston College’s Center for Retirement Research, the U.S. has a “Retirement Deficit” of $6.6 trillion.

Retirement Deficit is the gap between the retirement savings of U.S. households and what they need to have in order to maintain their living standards past retirement

The current Retirement Deficit is roughly five times the projected federal deficit for 2010

Source: “U.S. Retirement Deficit Reaches $6.6 Trillion,” Laura Bassett, Huffington Post (9/16/2010)



Potential for Increasing Tax Rates

• There is increasing concern that income tax rates will goup in the future

• If Income Tax Rates Go Up, Net Spendable Amount Goes Down



Emerging Focus for Employers

Employers facing challenges in recruiting and retaining key talent

52% of U.S. companies reported problems recruiting critical-skill employees (Towers Watson Global Talent Management and Rewards Survey, 2010)



Emerging Focus for Employers

• As the economy improves, key employees may search for better opportunities elsewhere

In a recent survey, 81% of employees said they would pursue new job opportunities as the economy improves

* ”Heading off a resume tsunami,” Deloitte – 2009

** Right Management Survey – November 2009



Traditional Solutions – NQDC/SERP

• Employers have traditionally used Deferred Compensation Plans to recruit, retain, and reward key employees

• Many labels for the same concept:

Nonqualified deferred compensation (NQDC)

Supplemental executive retirement plan (SERP)

Corporate-Owned Life Insurance (COLI)

§ 409A plan

Salary continuation

401(k) Look Alike / 401(k) Mirror



• Employer promises Key Employee future benefit (defined contribution or defined benefit)

• Employer informally funds promise by purchasing life insurance policy on Key Employee

• At retirement, or at death, Employee receives promised benefit from Employer

• Arrangement is subject to IRC § 409A

Traditional Solution – NQDC/SERP


© 2010 ING North America Insurance Corporation

Potential Benefits of NQDC/SERP Arrangements

For Employers:

“Golden Handcuffs”

Control of Funding Asset

Ability to Discriminate (i.e., offer benefits to select employees)

Cost Recovery

For Employees:

Tax Deferral

Supplemental Retirement Income



Concerns with NQDC Paradigm

EmployerNo Current Tax Deduction

Funding Risk

Regulatory Restrictions

Balance Sheet Risk

Cost of Administration

Complexity

EmployeeFuture Tax Uncertainty

Exposure of Funding Asset

Potential 20% Penalties

No Portability

No Flexibility

Complexity



Key Question

If there were a way to potentially provide a Key Employee with the same net

benefit amount and eliminate the risks and concerns we’ve just discussed,

would you be interested?



S.O.L.A.R. Insurance Arrangements

• Self-Owned Life And Retirement (S.O.L.A.R.) Insurance Arrangement funded with ING Indexed Universal Life – Global Plus (ING IUL-Global Plus) Life Insurance

An arrangement where Employee purchases an ING IUL-Global Plus policy for death benefit protection and as a potential source of retirement income.

Premium payments may be provided by Employer as a tool to Recruit, Reward, and Retain key talent

Select Loan feature available to help Employee pay income taxes due on funds used to pay premiums

* A portion of the policy’s surrender value may be available as a source of supplemental retirement income through policy loans and withdrawals. Income tax free policy distributions may be achieved by policy loans or withdrawing to the cost basis (usually premiums paid). This assumes the policy qualifies as life insurance, is not a modified endowment contract and is not lapsed or surrendered with an outstanding loan. Select Loans have the risk that policy performance may be lower than projected if the amount credited to the account value in the Fixed Strategy and/or Indexed Strategy is less than the fixed 6% interest charged on the policy loan. Detailed additional information about policy loans is located in the policy form and any personal policy illustration.



Addressing Employer Concerns

NQDC

No Current Tax Deduction

Funding Risk

Regulatory Restrictions

Balance Sheet Risk

Cost of Administration

Complexity

S.O.L.A.R. Insurance Arrangement

potential benefits

Current Tax Deduction (if reasonable compensation)

Generally No Future Funding Obligations

Not Subject to §§ 409A or 101(j)

No Balance Sheet Impact

Little or No Administration

Simple Arrangement



Addressing Employee Concerns

NQDC

Future Tax Uncertainty

Exposure of Funding Asset

Potential 20% Penalties

No Portability

No Flexibility

Complexity

S.O.L.A.R. Insurance Arrangement

potential benefits

Taxes Paid at Today’s Rates

Not Subject to Employer Creditors

Not subject to § 409A

Executive Owns Policy

Executive Determines How to Use Policy

Simple Arrangement



Potential Disadvantages of S.O.L.A.R. Insurance Arrangements

For Employers:

No Control of Funding Asset

No Cost Recovery

For Employees:

No Tax Deferral

Q U E S T I O N S ?

Documents

The S.O.L.A.R. Plan. Do not put content on the brand signature area Orange RGB= 255,102,000 Light blue RGB= 180,195,225 Dark blue RGB= 000,000,102 Grey