Supplemental Executive Retirement Plans

A Supplemental Executive Retirement plan (SERP) is a non-qualified retirement plan that permits a corporation to provide additional retirement benefits to a select group of executives who may have their pension benefits limited because of government restrictions on qualified retirement plans.

The acceptance of Supplemental Executive Retirement Plans (SERPs) has increased significantly in the last several years as corporations have come to realize that traditional pension plans and 401(k) plans do not replace an adequate percentage of the highly compensated executive's pre-retirement income.