MEMBER SPOTLIGHT
MEMBER SPOTLIGHT
NPPG Founder Michael Salerno : Retirement Plan “ Nerd ”
By Diane C . Walsh Editor , COMMERCE
It ’ s hard to believe , but Michael Salerno was a reluctant entrepreneur .
His mentor pushed him – and couldn ’ t have been more right . Since establishing NPPG more than 25 years ago , Salerno opened a string of offices nationwide with 160 employees . His firm now handles clients with cumulative assets of approximately $ 8 billion in investments and expects to double his operation in the next few years , with plans to expand into Puerto Rico too .
NPPG stands for National Professional Planning Group and its focus is corporate employee benefits and retirement plans . Salerno ’ s fascination for the business began at 26 when he put to use his degree in finance and accounting . He started out overseeing the retirement plan division at one of Guardian Life Insurance ’ s biggest offices in New Jersey . The company founder , Al Ferrara , had recently turned the business over to his son , Steven , and his priority was insurance .
Salerno shared with the elder Ferrara that he wanted to focus and grow their retirement plan division . His friend and mentor was blunt in his response . “ He said to me ‘ Go . You ’ ve already left , you just haven ’ t put the action step in ’,” Salerno recalled . With the support of his mother , other family members , and a $ 15,000 bank loan Salerno opened shop .
What made the difference for him ? “ I ’ m definitely not smarter than anyone else . I , typically , just wind up working harder than anyone else ,” he said .
Inside the NPPG offices there are signs on the walls urging the staff to excel . “ One of the key components for us is betterment ,” the CEO said . “ Yesterday was great . Enjoy it . Be Proud of it . But tomorrow we ’ ve got to do better . And that ’ s really what drives NPPG and all of our people . It ’ s the culture .
“ Good isn ’ t enough . Be proud of what we ’ ve done , but there ’ s still more to do ,” he said .
The CEO also admits there is a “ nerd ” side of him . He is fascinated with research . “ I love researching the law , especially ERISA and tax law .” Working with business owners to develop strategies with their accountants energizes Salerno .
He strives to draft a retirement plan or benefits plans that is the best fit for the company ’ s overall tax plan and corporate culture . “ All the things that NPPG does are tax deductible to employers ,” Salerno said . “ So how can an employer structure their benefits program , whether they be through insurance , through retirement plans , trust funds , in a manner that is most beneficial to him or her and their employees .”
NPPG is based in Shrewsbury , New Jersey and has offices in Florida , Texas , and Pennsylvania . It is recognized as a nationwide leader in retirement plans , especially Pooled Employer Plans (“ PEP ”). Based on industry trends , Salerno believes by 2030 about 70 to 80 percent all the plans will operate as a “ pooled arrangement .”
Employers find Pooled employer Plans advantageous because it removes much of their liability . The onus is shifted to Pooled Plan Providers
Using a Pooled Plan Provider can relieve time-consuming efforts by your Human Resources department and allow you to provided less expensive and improved benefits for your employees .
Photo : Getty Images / iStockphoto / PeopleImages
Michael Salerno , founder of NPPG
or PPPs such as NPPG . State mandates have also quickened the expansion of pools plans . Faced with new regulations , small employers are opting for pooled plans , where the provider does the costly annual audit . Salerno explains that as the PPP his company serves in a fiduciary role as the Plan Sponsor .
He is confident the firm will continue to adapt and excel as the industry progresses . For example , when Obamacare was unveiled there was widespread anxiety over the new health benefits options , especially among state-run plans . Despite the uncertainty of the time , Salerno said the change created more awareness because small and sized employers faced challenges and needed answers . NPPG addressed the employers ’ concerns with its deep breadth of experience and helped them fulfill the new compliance regulations , he said . Salerno expects his company ’ s abilities will be in demand again as the PEP retirement plan market grows .
“ That ’ s what happens over time , where you wind up being a leader and a sounding board for what is the best way to do things ,” he said . NPPG now administers about $ 8 billion . “ Our goal in the short term is $ 20 billion . And with the help of our partners I believe that we ’ ll definitely exceed that over the next three to five years ,” Salerno said .
“ I see us being a cornerstone in the retirement plan space for many years to come .”
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