Offering a retirement benefit like a Supplemental Executive Retirement Plan (SERP) can be a key differentiator for organizations seeking to attract and retain highly compensated talent. Addressing the common challenge of closing the retirement funding gap offers a meaningful benefit and can be a helpful tool in recruiting new executives. The option to provide a premature death benefit can make this alternative even more significant.
On the employer side, the flexibility to offer a SERP on a vesting schedule provides more leverage for attracting and retaining HCEs late in their careers. With the rise of a remote workforce, it has become increasingly difficult for employers to retain key employees. A meaningful SERP benefit can be a helpful way to both reward top talent but also retain key personnel for a long period time.
And the flexibility to fund these benefits efficiently, without adversely affecting the organization’s balance sheet or diluting equity, can make them a highly cost-effective choice for organizations large and small.