A smart way to reward your top leaders without touching their salary—and help them save for retirement.
What’s a SERP?
A SERP is a non-qualified, deferred-compensation plan designed specifically for key executives. Unlike standard plans such as 401(k)s, this is confidential, customizable, and funded by the company—often through life insurance or cash reserves—so executive-level benefits accumulate while deferring tax until payout.
What Makes a SERP Work
- Selective & Strategic: You design the plan, pick the participants, and tailor payouts around performance, tenure, or milestones.
- Tax-Efficient & Flexible: Benefits are taxed at distribution, not contribution—often at a lower rate—and you can choose lump sum or annuity payouts.
- Retain Your Talent: Add vesting options or “golden handcuffs” to encourage long-term loyalty.
How a SERP Fits Your Compensation Strategy
Plan Agreement
A formal agreement defines who is covered, eligibility criteria, vesting schedule, and benefit structure.
Funding Vehicle
Typically funded through corporate-owned life insurance (COLI) or cash reserves.
Administration & Execution
We handle the documentation, funding strategy, and ongoing plan reviews.
Why It Matters
For the Company
You gain a flexible tool that reinforces loyalty, attracts top talent, and keeps compensation competitive.
For the Executive
A tailored benefit that grows tax-deferred, avoids early withdrawal penalties, and provides a financial safety net.
Next Steps with Insureous
If you’re ready to explore or refine a SERP:
- We’ll help structure it around your business goals—whether that’s performance, tenure, or legacy planning.
- We’ll advise on sustainable funding strategies, typically through COLI.
- We’ll integrate it into your broader compensation and benefits suite.
- And we’ll deliver ongoing support so it keeps delivering value.
Learn More
Want deeper insights? Read our guide on How SERPs Complement Executive Benefit Plans, or schedule a free strategy review to explore if a SERP fits your leadership compensation mix.
