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Back home the parent company gets a tax deduction for premiums that really are transfers of assets held in reserve for future payouts.
Reserves are provisions for future liabilities and indicate how much money should be set aside now to reasonably provide for future payouts.
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If employees walk, they could be leaving several years of future payouts on the table.
But the city, like other high-risk areas, is also facing pressure from insurance companies, which don't relish the prospect of huge future payouts for disaster damage that could have been prevented or alleviated.
They are essentially agreeing to buy a percentage of those future payouts in exchange for a smaller amount upfront to the whistle-blowers.
While it was impossible to determine how many such cases are winding through the system, and requests for such numbers were not answered, future payouts could be large if $1 million was established as the norm.
In May 1999 AudioNord sold NAD to Lenbrook, a firm in Pickering, Ont., for an initial $5 million, plus undisclosed future payouts.
The acquisition would also limit CSC's ability to make future payouts to shareholders, he said.
They underestimated future payouts.
For those who do, it usually makes sense to convert unless your conversion tax rate is much higher than your rate on future payouts, which is rarely the case.
The higher the assumed future return, the less the plan needs in the bank now to fund future payouts.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com