The main reasons why a business would want to establish a Supplemental Executive Retirement Plan (SERP) are to meet the needs of both the business and the executive. By establishing…
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Category Archives: Employee Benefits
There a several disadvantages of using a Supplemental Executive Retirement Plan that need to be considered before establishing a SERP. The disadvantages of using a Supplemental Executive Retirement Plan include:…
There are several advantages of using a Supplemental Executive Retirement Plan to recruit, retain and reward key executives. In this post, I am going to discuss the advantages of of…
As a nonqualified retirement plan, there are business tax consequences of SERPs to know. Specifically, one of the business tax consequences of SERPs is that contributions made to the SERP are not tax-deductible…
How SERP benefits can be paid by a company to the executive typically when one of the three events occur: the participating executive retires the survivors of the executive at the…
A business setting up a SERP will want to avoid current taxation of SERP benefits to the executive. An important characteristic of SERPs is that they avoid current taxation of…
Rabbi trusts used with SERPs are designed to overcome the concern that a change in company management could jeopardise promised SERP benefits. A Rabbi Trust is an irrevocable trust established…
There are two types of trusts used for Supplemental Executive Retirement Plans (SERP.) Although any business involves a level of risk, small businesses generally expose their owners to an increased risk…
Leveraging the features of life and disability insurance can be the most efficient way to informally fund a SERP benefits. A SERP is sometimes categorized as a deferred compensation plan….
A Supplemental Executive Retirement Plan (SERP) is a means by which a business can provide a select employee—typically, a key executive—with additional (supplemental) retirement benefits. These plans are commonly offered to…