A Supplemental Executive Retirement Plan (SERP) is a non-qualified benefit plan financed by employer dollars that provides key executives with additional retirement income. The payment is often designed to allow the executive to retire with a certain percentage of his or her final salary. The executive has no option to receive any employer contributions as current compensation. The executive cannot defer any of his or her own funds toward the retirement obligation.

A SERP is generally designed to favor the employer since it is financed entirely with employer dollars. The executive’s right to any benefits under the plan are normally restricted through the use of vesting or requiring a set period of service or employment until retirement. These restrictions are often known as “golden handcuffs.”

SERPs are usually designed as either a Defined Benefit or Defined Contribution Plan

EBS offers complete Supplemental Executive Retirement Plan (SERP) design, communication, installation, administration and support for plan sponsors and executives.