Supplemental Executive Retirement Plan For Key Leader Retention
Why Companies Add A SERP
A Simple Way To Close The Retirement Gap
A supplemental executive retirement plan, or SERP plan, adds employer-funded income beyond 401k limits. MWI Agency designs executive benefits planning that keeps top talent in Metro Detroit, Ann Arbor, Los Angeles, Pasadena, and Orange County. Clear formulas, practical vesting, and a payout schedule create loyalty without inflating payroll today.
The right SERP plan anchors retention and creates a clear path to retirement income. MWI Agency will model costs, set funding, and handle administration so you can focus on growth.
How The Promise Works
Eligibility, Vesting, And Payouts
We define who qualifies, how benefits accrue, and when money is paid. Plans can deliver a flat annual amount, a percent of final pay, or a target benefit reduced by other plans. Vesting and forfeiture rules turn the plan into a retention tool that matches milestones like product launches or leadership transitions.
COLI, Annuities, Or Cash Flow
A SERP is a contractual promise first, then a funding choice. Corporate-owned life insurance can build values to offset future payments, while fixed annuities create predictable cash flows. Some firms use planned cash flow. We coordinate life insurance planning with A++ insurers and set governance so finance teams stay on track.
Keep Documents, Taxes, And Admin Clean
We align the plan with your attorney and CPA to meet 409A timing rules, file top-hat notices, and write clear payout provisions. For closely held firms, we link terms to business succession so change-in-control events and buyouts are handled without drama.
Who Benefits From A SERP
Mid-market companies in Oakland County, Grosse Pointe, Pasadena, and Irvine use SERPs to retain revenue drivers and specialists. Professional practices and family businesses value the ability to tailor benefits for a small, defined group of leaders.
Frequently Asked Questions
Executive SERP Questions, Answered
What makes a SERP different from deferred comp?
A SERP is employer-funded and formula based, while deferred comp is usually employee deferrals.
Can our company recover costs over time?
Many designs use policy values or scheduled cash flows to offset benefits later.
What happens if the company is sold?
Documents can define change-in-control outcomes like accelerated or continued payouts.
How do taxes work for employers and executives?
Employers typically deduct at distribution; executives recognize income when paid.
Is a rabbi trust required or optional?
Optional. It can improve perceived security while remaining subject to corporate creditors.
