Supplementary Employee Retirement Plans (SERPs)

High Performing employees are linked to the success of a company’s growth. A leading group of best-in-class companies is looking for high impact strategies to retain top talent in today’s market place.

Employer-sponsored pension plans are gaining in popularity. These plans can provide generous tax incentives and rewards for employees to save for retirement.

A SERP, which is designed for highly compensated employees, can be a cost-effective option because business owners only need to include key executives in this plan.

Benefits of a SERP for the business:

  • Can be tailored to each executive selected to participate
  • Can be designed with a vesting provision
  • Can be designed with a vesting provision
  • Benefits are tax deductible to the business when paid

Benefits of a SERP for the executive:

  • Retirement benefits in addition to government sponsored Social Security and qualified retirement plans.
  • Benefits are not taxable to the executive until received.
  • May provide pre-retirement survivor benefits for executive’s beneficiaries.
  • Plan may allow for any remaining retirement income to be paid to the executive’s beneficiaries after death.

When creating a SERP for owners, Corporations are typically able to recognize more of the SERP’s tax advantages than pass-through organizations. Partnerships and S Corps will generally limit SERPs to minority owners or employees for tax purposes.

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We'd be happy to discuss your priorities for an employee retirement plan and whether an SERP might be the right choice.
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