Supplemental Executive Retirement Plan (SERP) 457f Design & Implementation
Security in retirement is both an appealing enticement for senior executives and a powerful tool for credit unions looking to retain, recruit, and reward top talent. By establishing a Supplemental Executive Retirement Plan 457(f) (SERP) for selected executives, D. Hilton Associates can assist your organization in establishing a strong senior management team. This non-qualified deferred compensation agreement can provide retirement income to select credit union executives in return for the attainment of agreed-upon objectives, such as a specified number of years of service until retirement.
What are the advantages of using a 457(f) SERP?
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Improves retention by rewarding executives retained for a specific number of years or until retirement.
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Enables the organization to follow its succession plan in a timely manner by allowing its executives to retire at appropriate ages.
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Selective and non-qualified plan, allowing the financial institution to choose and reward key executives without restrictions on contribution amounts.
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The financial institution controls the plan, owns the plan policies and carries the cash value as an asset on its balance sheet.
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Offer a choice of investment management styles within the same contract. The investor gets the benefit, cost savings and talent of institutional money management. This includes assetallocation, automatic rebalancing, and fund exchanges, without fees or taxes.