Dodd Consulting, LLC

"We guide our clients through their decision making process involved in considering Executive Benefits, Employee Benefits, Wealth Preservation and Insurance Planning."

 

Supplemental Executive Retirement Plans (SERPs)

Supplemental Executive Retirement Plans help solve retention and motivation problems, helping to retain executives who are much needed for the continuity of your corporation's success.

SERPs must be limited to a top group of executives and/or directors due to the penalties that could arise through ERISA-based claims if a plan covers more than a top group.

These types of plans are commonly called "non-qualified" because they cannot meet the broad coverage rules that are necessary to secure the special tax treatment afforded to tax-qualified retirement plans.

Although not without tax risk, a SERP may permit executives to self-direct the measures for the return on their account balances. The employer usually selects the range of available choices in order to facilitate plan administration.

For some executives, a significant portion of their anticipated retirement income will be derived from employee stock ownership plans. SERPs are a viable and popular alternative for top long-term executives concerned about the concentration of their post-retirement wealth in stock options. However, executives who have benefited from the bull market or an IPO and no longer need their SERP benefits for worry-free retirement living may prefer exchanging or converting the SERP value for more efficient estate planning tools. Benefit Conversion Options or "swaps" help such executives do more with their rewards.

Dodd Consulting, LLC

One Landmark Square, 8th Floor, Stamford, CT 06901-2603 (map)
Phone: (203) 504-3633 · Fax: (203) 504-3639 · E-mail: info@doddconsulting.net