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Executive BenefitsExecutive Benefits

Executive benefits provide a group of select or key employees additional tax advantaged/preferred compensation packages that supplement the traditional core benefits offered to all employees.  Generally, executive benefits come in the form of “Non-Qualified Retirement Benefits”.  These benefit plans are NOT subject to the strict IRC rules that currently govern 401(k) and pension “qualified” plans.

Once the employer determines (selects) who is eligible, these benefits:

  • Create a positive impact on participants.
  • Enhance the employers efforts to recruit and retain high quality people who significantly and positively impact the company’s profitability.

Two types of Executive Benefits that significantly enhance the key employee’s family security and retirement:

  1. Elective Deferred Compensation Plan (EDC Plan) An arrangement where an employee defers a portion of their pre-tax salary until retirement, disability or death.
  2. Supplemental Executive Retirement Plan (SERP) An arrangement where the business agrees to
    pay an additional amount to a key employee upon attaining retirement, becomes disabled or dies.