Supplemental Employee Retirement Plan (SERP)

This powerful retention tool allows you to customize a retirement benefit with all the flexibility you need for your specific business situation. Whether you would like to tie your top performers closer to your company, or say "thank you" for a job well done, we will partner with you to come up with the benefit plan design that can help get you there.

Supplemental Executive Retirement Plans (SERP) come in two distinct forms:

Defined Contribution SERP and Defined Benefit SERP.

Both plan designs share the same flexibility traits, which include:

  • Discretionary eligibility to pick and choose which of your key employees should be included in your plan.
  • Discretionary vesting schedules to retain key employees that can be customized for different groups, or even pinned down to specific key employees.


Defined Contribution SERP

A Defined Contribution SERP allows the company to credit a specific amount to a nonqualified plan account of an individual key employee. The amounts are discretionary by the company and can be tied to company and/or individual performance targets, which provides a results oriented mentality to drive business goals.

  • The DC SERP can be a stand-alone plan or can be integrated into a Nonqualified Deferred Compensation Plan, which eliminates the need to create multiple plans.
  • Plan contributions can grow tax-deferred for your key employees and are taxed at the time of distribution.

There are no limits on the amounts of the contributions the company can credit to plan participants, which is important as DC SERP participants are often subject to limitations on their qualified plans. The Retirement Income Gap is an all too real phenomenon, so this plan is an  additional tool that your key employees can use to reach their retirement income needs.


Defined Benefit SERP

A Defined Benefit SERP is a future promise of the company to your key executive to pay a specific amount of retirement income. The amount can be as simple as a stated benefit amount or can be tied to a benefit formula similar to qualified pension plans. The amounts can be specific to individual executives or groups of executives providing you with a lot of flexibility.