ACB: Press Releases

Contact:	Robert Schmermund (202) 857-3104 Jim Eberle (202) 857-3145	Jim Eberle (202) 857-3145 (work) (703) 893-2593 (home) [email protected]	For Immediate Release July 26, 2005 #05-48
E-mail: [email protected]

ACB APPLAUDS INCLUSION OF BOLI PROVISIONS IN SENATE FINANCE BILL

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Statement by Diane Casey-Landry, president and CEO, America’s Community Bankers, on the bank-owned life insurance provisions of the pension bill reported today by the Senate Finance Committee:

America’s Community Bankers applauds the Senate Finance Committee for reporting a bill by voice vote that would continue the favorable tax treatment for bank-owned life insurance. ACB worked closely with the committee this year and in the previous Congress to protect the availability of BOLI to smaller community banks.

Under the bill, BOLI death benefits would not be taxed if a deceased individual was an employee within 12 months of death; or if the death benefits were payable to the employee’s family, estate or to purchase an equity interest in the employer; or the employee was a “key person.”

Key person is defined as either a “highly compensated” employee or officer, or a director of the company. ACB worked to broaden the original definition in previous bills of highly compensated being paid more than $95,000, which would have excluded executives of some small community banks.

The new definition includes: the highest paid officers of the company; a shareholder with more than 10 percent ownership; or the key person is among the highest paid 35 percent of all employees.

America’s Community Bankers is the national trade association committed to shaping the future of banking by being the innovative industry leader strengthening the competitive position of community banks. To learn more about ACB, visit www.AmericasCommunityBankers.com.

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