Wisconsin Supplemental Executive Retirement Plan - SERP

• Category: Corporations - Public - Disclosure and Notices
• State: Multi-State
• Control #: US-CC-24-260
• Format: Word; Rich Text

Description

This sample form, a detailed Supplemental Executive Retirement Plan (SERP) document, is a model for use in corporate matters. The language is easily adapted to fit your specific circumstances. Available in several standard formats. The Wisconsin Supplemental Executive Retirement Plan (SERP) is a type of retirement benefit program designed to offer additional retirement benefits to high-level executives and key employees in Wisconsin. SERPs are often provided by employers as a means to attract and retain top talent by offering an extra layer of financial security during retirement. A Wisconsin SERP serves as a supplement to an executive's primary retirement plan, such as a defined contribution plan or a pension plan. It is designed to bridge the gap between the maximum benefits provided by those primary plans and the desired retirement income of the executive. The plan allows executives to accumulate additional retirement savings by deferring a portion of their compensation into the SERP. One primary feature of a Wisconsin SERP is that it offers tax advantages. The contributions made by both the executive and the employer are typically tax-deferred until the executive receives the benefits, providing a potential tax advantage during retirement when the executive's income may be lower. There are different types of Wisconsin Supplemental Executive Retirement Plans that employers may offer. Some common variations include: 1. Defined Benefit SERP: This type of SERP guarantees a specific retirement benefit amount to the executive, based on a predetermined formula that considers factors like years of service, average earnings, and age. The executive will receive a regular fixed payment during retirement, usually for the remainder of their life. 2. Deferred Compensation SERP: With this type of SERP, executives can elect to defer a portion of their current compensation to be paid out in retirement. This allows them to accumulate additional savings over time, and the plan often provides various investment options to grow the deferred funds. 3. SERP with Supplemental Savings: Some SERPs include a supplemental savings component, allowing executives to contribute additional after-tax funds on top of the deferred compensation. These supplemental savings can be used to enhance the retirement benefits and provide more flexibility in retirement planning. It's important to note that each Wisconsin SERP may have its own unique features and eligibility criteria, as they are tailored to meet the needs of the specific organization and its key employees. Executives who have access to a Wisconsin SERP should carefully review the plan documents, consult with financial advisors, and consider their long-term retirement goals to make informed decisions about their retirement savings strategy.

The Wisconsin Supplemental Executive Retirement Plan (SERP) is a type of retirement benefit program designed to offer additional retirement benefits to high-level executives and key employees in Wisconsin. SERPs are often provided by employers as a means to attract and retain top talent by offering an extra layer of financial security during retirement. A Wisconsin SERP serves as a supplement to an executive's primary retirement plan, such as a defined contribution plan or a pension plan. It is designed to bridge the gap between the maximum benefits provided by those primary plans and the desired retirement income of the executive. The plan allows executives to accumulate additional retirement savings by deferring a portion of their compensation into the SERP. One primary feature of a Wisconsin SERP is that it offers tax advantages. The contributions made by both the executive and the employer are typically tax-deferred until the executive receives the benefits, providing a potential tax advantage during retirement when the executive's income may be lower. There are different types of Wisconsin Supplemental Executive Retirement Plans that employers may offer. Some common variations include: 1. Defined Benefit SERP: This type of SERP guarantees a specific retirement benefit amount to the executive, based on a predetermined formula that considers factors like years of service, average earnings, and age. The executive will receive a regular fixed payment during retirement, usually for the remainder of their life. 2. Deferred Compensation SERP: With this type of SERP, executives can elect to defer a portion of their current compensation to be paid out in retirement. This allows them to accumulate additional savings over time, and the plan often provides various investment options to grow the deferred funds. 3. SERP with Supplemental Savings: Some SERPs include a supplemental savings component, allowing executives to contribute additional after-tax funds on top of the deferred compensation. These supplemental savings can be used to enhance the retirement benefits and provide more flexibility in retirement planning. It's important to note that each Wisconsin SERP may have its own unique features and eligibility criteria, as they are tailored to meet the needs of the specific organization and its key employees. Executives who have access to a Wisconsin SERP should carefully review the plan documents, consult with financial advisors, and consider their long-term retirement goals to make informed decisions about their retirement savings strategy.