Supplemental Executive Retirement Plans (SERPs)

Only for-profit corporations are allowed to maintain this type of plan
The plan must cover only a select group of management or highly compensated employees
The assets of the plan must remain assets of the company sponsoring the plan and are not protected from general creditors in the event of bankruptcy
Typically this type of plan is set up to provide benefits over the limits that apply to pension plans, 401(k) plans, profit sharing plans, money purchase pension plans or ESOPs
The plan can operate like a defined contribution plan with individual accounts for each employee in the select group
The plan can operate like a defined benefit plan, supplementing other company sponsored retirement benefits
The company receives no tax deduction when it makes contributions to the plan but does receive a deduction when distributions are made
Distributions are subject to ordinary income tax; rollovers to IRAs or other employer retirement plans are not permitted

If the plan only covers a select group, it is exempt from nondiscrimination rules, reporting, disclosure and fiduciary responsibility rules of ERISA
The company can deposit plan assets into a rabbi trust to provide some protection from a change in management or corporate ownership

Evaluate your objectives and recommend possible plan designs
Consult with you on regulatory changes and emerging trends
Assist in vendor searches to find service providers for your plan
Provide daily valuation or traditional recordkeeping for your plan
Calculate the annual FAS 87 expense for inclusion in the company’s financials
Prepare the annual FAS 87 financial statement disclosure
Prepare the one time notification to the Department of Labor in order to obtain exemption from filing annual Form 5500 and other reporting and disclosures
Help you prepare employee communications
Prepare plan documents and plan amendments
Assist you with any IRS or DOL audit of your plan