In today’s competitive marketplace, the ability to recruit, retain and reward employees is critical to the success of any business. It is especially important to take care of those people who help make the difference between success and failure.
A company may think it has a generous executive benefits program in place. However, it may not be accomplishing the most important goals: to retain and also reward the most valued employees by providing them with a benefit plan that will help them secure a comfortable retirement. So therefore, you should consider a well-designed executive non-qualified retirement plan.
It isn’t enough to simply have a “one size fits all” benefit plan package. Given the limits imposed by the Internal Revenue Code on contributions to traditional qualified retirement plans, highly compensated executives may find it difficult to achieve their retirement goals. A non-qualified plan may be the answer. Non-qualified plans can add the flexibility that key executives need to help them meet these goals. As a result, non-qualified plans can be some of the fastest-growing retirement plans in the United States today.
Key executives may need a benefit plan that goes beyond traditional raises or bonuses.
Historically, the majority of an executive’s pre-retirement income was replaced by Social Security and qualified plan benefits. Today, however, highly compensated employees may face a serious shortfall upon retirement, even when contributing the maximum amount of pre-tax-deferred compensation to your qualified retirement plan.
So it’s no surprise that executives value benefits that help them build and maintain their wealth. Therefore, establishing a non-qualified retirement plan for your key executives may help them reach their retirement income goals, and help you retain their loyalty to your business’ success. The following are some of the benefits employers see:
- SELECTIVITY AND CONTROL
- EXEMPTION FROM IRS APPROVAL AND MINIMAL ERISA REQUIREMENTS
- NO CONTRIBUTION LIMITES OR NON DISCRIMINATION REQUIREMENTS
- LOWER SET-UP AND ADMINISTRATION COSTS
- INCOME TAX DEFERRAL