CoSource Financial can help plan administrators build non-qualified deferred compensation executive benefits packages and tailor them to the needs of your plan participants. A portion of the employee’s compensation is held back (deferred) until the employee retires or separates for any predetermined reason.
Types of Executive Benefit Plans:
• Elective Deferral Plans – These types of plans focus on the employee electing to withhold a portion of their earnings that they would otherwise receive in their regular compensation. The election to withhold is then contracted in a written statement that specifies the amount of all deferrals up to a predetermined end date, such as retirement.
• Supplemental Benefit Plans – In these types of arrangements, the employer agrees to create a legally binding agreement to pay additional compensation to an employee or employees on top of their regular compensation, typically at the time of retirement. These plans, sometimes referred to as SERP (Supplemental Employee Retirement Plans), can be negotiated as stand alone plans or in conjunction with a qualified pension plan.