Delaware Supplemental Retirement Plan

• Category: Corporations - Public - Retirement
• State: Multi-State
• Control #: US-CC-21-104
• Format: Word; Rich Text

Description

21-104 21-104 . . . Supplemental Executive Retirement Plan which permits eligible management and highly-compensated employees to receive benefits that will compensate them for limitations imposed by Sections 401(a)(17), 401(k), 401(m) and 402(g) of Internal Revenue Code on salary deferrals and matching contributions under 401(k) plan Delaware Supplemental Retirement Plan (SRP) is a retirement savings program designed to provide additional income to certain employees in the state of Delaware. As an employer-sponsored plan, it offers an opportunity for employees to contribute a portion of their salary on a pre-tax basis, allowing for potential tax savings and long-term investment growth. The Delaware SRP is available to eligible employees who meet certain criteria, such as being public employees, teachers, university faculty, or members of specific state agencies or organizations. It serves as a supplemental retirement savings vehicle and can complement other retirement plans, such as a 401(k) or pension plan. The SRP offers several key benefits, including: 1. Pre-tax Contributions: Employees can contribute a portion of their salary to the SRP on a pre-tax basis, helping to reduce their taxable income in the present and potentially lowering their overall tax burden. 2. Employer Matching: In some cases, participating employers may offer a matching contribution to the SRP, further enhancing the fund's growth potential. The employer's matching contribution can be a percentage of the employee's salary, providing an additional incentive for employees to save. 3. Investment Options: The Delaware SRP typically offers a range of investment options, including mutual funds, target-date funds, and potentially other investment vehicles. This variety allows participants to choose investment strategies that align with their risk tolerance and long-term goals. 4. Portability and Flexibility: The SRP often allows employees to carry their contributions and investment earnings with them if they change employers or retire. It offers flexibility in terms of managing retirement savings and preserves the accrued benefits earned during the employment period. While there may not be different types of Delaware Supplemental Retirement Plans, each participating employer might have slightly different plan provisions and contribution limits. Employees are encouraged to review the specific details offered by their respective employer's SRP to understand the plan's features and restrictions fully. In conclusion, the Delaware Supplemental Retirement Plan is a valuable retirement savings option available to eligible state employees, teachers, and public servants. It aims to provide additional income during retirement by offering pre-tax contributions, potential employer matching, various investment options, and portability. By actively participating in this plan, employees can enhance their retirement savings and secure a more financially stable future.

Delaware Supplemental Retirement Plan (SRP) is a retirement savings program designed to provide additional income to certain employees in the state of Delaware. As an employer-sponsored plan, it offers an opportunity for employees to contribute a portion of their salary on a pre-tax basis, allowing for potential tax savings and long-term investment growth. The Delaware SRP is available to eligible employees who meet certain criteria, such as being public employees, teachers, university faculty, or members of specific state agencies or organizations. It serves as a supplemental retirement savings vehicle and can complement other retirement plans, such as a 401(k) or pension plan. The SRP offers several key benefits, including: 1. Pre-tax Contributions: Employees can contribute a portion of their salary to the SRP on a pre-tax basis, helping to reduce their taxable income in the present and potentially lowering their overall tax burden. 2. Employer Matching: In some cases, participating employers may offer a matching contribution to the SRP, further enhancing the fund's growth potential. The employer's matching contribution can be a percentage of the employee's salary, providing an additional incentive for employees to save. 3. Investment Options: The Delaware SRP typically offers a range of investment options, including mutual funds, target-date funds, and potentially other investment vehicles. This variety allows participants to choose investment strategies that align with their risk tolerance and long-term goals. 4. Portability and Flexibility: The SRP often allows employees to carry their contributions and investment earnings with them if they change employers or retire. It offers flexibility in terms of managing retirement savings and preserves the accrued benefits earned during the employment period. While there may not be different types of Delaware Supplemental Retirement Plans, each participating employer might have slightly different plan provisions and contribution limits. Employees are encouraged to review the specific details offered by their respective employer's SRP to understand the plan's features and restrictions fully. In conclusion, the Delaware Supplemental Retirement Plan is a valuable retirement savings option available to eligible state employees, teachers, and public servants. It aims to provide additional income during retirement by offering pre-tax contributions, potential employer matching, various investment options, and portability. By actively participating in this plan, employees can enhance their retirement savings and secure a more financially stable future.