A large East Coast utility engaged Lynch and Associates for its executive compensation plan and was pleased with the work. So when the need arose to restructure a nuclear decommissioning trust, they approached Lynch to bid on the project. It involved a complicated move of the utility from one service agent to another as well as bringing the Trust from a general account program to a separate account program to give the utility more protection. It was a large trust, more than $100 million, with lots of moving parts.
Lynch won the business and immediately went to work sorting out all the component parts, which turned out to be a messy proposition. One of the first things discovered was that some previous insurance carriers handling the NDT accounts had not done their work properly, creating tax liability problems for the utility.
The utility’s Treasurer noted how Lynch & Associates not only discovered the problem, but moved quickly to resolve it.
“We had to clean that up with the regulators. They discovered the problem, took the initiative to correct it and got us through it. Kudos to them. They handled things admirably. They stay on top of things.”
In addition to this complication, many of the policies under the previous program were not operating at maximum efficiency and effectiveness, and Lynch worked diligently to close out these old policies and transfer cash to a new program for active employees, all the while ensuring that in moving from a general account to a separate account program for active employees, there was enough money left in the old program to protect the company’s retirees.
“That is not our area of expertise. It is very technical, and that is why we are very dependent on Lynch & Associates. We are very satisfied with them because they have a lot of expertise. The firm provides tremendous customer service. They are always available when you need them and are very open to discussions. They are friendly, engaging people, and you like working with them.”