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Standard retirement plans have legislative limitations that may reduce benefits available to key executives. Many organizations are establishing supplemental executive retirement programs to recover executive benefits lost under qualified plans. As major legislation continues to negatively impact these benefits, SERPs are taking on an added role in an organization’s overall integrated compensation strategy.

As an important non-qualified deferred compensation alternative, SERPs are helping organizations maximize shareholder value and future growth opportunities by providing valuable and competitive retirement benefits
that reward and retain key executives.

Existing SERP sponsors can also benefit from our indepth diagnostic approach that can help identify potential design flaws today before they become a problem in the future. Our in-depth analysis facilitates the orderly commitment of corporate assets throughout the executive’s career so that the required benefits are available at each retirement.

Maintaining current lifestyles into retirement can require an annual replacement ratio as high as 70% of final pay. Social Security and regular qualified retirement plans normally replace only 30% of an executive’s preretirement income. Retirement Resources actuaries can help you provide your key employees with a solution to this dilemma.

We can provide you with a diagnostic and dynamic cash flow analysis of your newly designed or already existing plan that will provide you with the following:

• Competitive benchmarking of replacement ratios by industry and selected peer groups
  
• Forecast multi-year contribution commitments and impact on profit & loss highlighted with graphical representations on an individual basis
  
• Model future results for a changing group of covered executives

If you decide that a SERP is right for your organization, we can assist with all facets of plan design, implementation, and financial modeling. Retirement Resources actuaries will coordinate with your legal counsel in the development of any plan documents or creation of individual executive term sheets, and will assist in tailoring an individual communication program and the preparation of personalized benefit statements for your executives.

To learn more about how a SERP can help you reward and retain your key executives, contact Michael F. Morhun, National Director of Actuarial Services at 312.462.6585 or email: mike.morhun@rsmi.com.

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