Executive Benefits 101: Your Complete Guide to Non-Qualified Plans

In today’s competitive talent landscape where remote work has created a global talent pool, executive benefits have become essential for attracting and retaining the key leaders who drive company growth and profitability. Unlike qualified retirement plans like 401(k)s, executive benefit programs offer the flexibility to selectively reward your most valuable team members with customized compensation solutions.

Executive benefits enable organizations to selectively reward key employees and executives without the coverage or participation requirements of qualified plans. This employee-by-employee approach offers maximum design flexibility, allowing companies to tailor benefits based on individual contributions and strategic importance.
These non-qualified plans typically focus on protecting executives and their families against death or disability while employed, and on providing sufficient levels of retirement income that go beyond traditional qualified plan limits.

The COVID-19 pandemic fundamentally changed how businesses compete for talent. With widespread remote work now standard, top executives have more employment opportunities than ever before. Executive benefits help companies compete by providing incentives that retain key executives for the longest possible time.
Well-designed executive benefit programs can replace benefits lost due to IRS limits on qualified plans, provide retirement income based on total compensation, and offer enhanced benefits in the event of organizational changes.

This comprehensive resource covers everything you need to understand about executive benefits:

Eligibility and Plan Design

• Who qualifies for executive benefit programs (CEOs, CFOs, Presidents, VPs, and other key positions)
• How to stay compliant with Department of Labor requirements
• Flexibility options for your organization’s specific needs

Types of Executive Benefit Programs

• Deferred Compensation Plans (DCP): Allow deferral of up to 100% of salary, bonus, commissions, and incentives
• Supplemental Retirement Plans (SERP): Company-funded programs that enhance qualified plan benefits
• Loan Regime Split Dollar (LRSD): Life insurance arrangements providing death benefit protection and potential tax-free retirement income
• Disability Insurance: Supplemental coverage for highly compensated employees

Implementation Process

Learn about EBS’s proven 4-step engagement process, including fact-finding, plan design and analysis, implementation and documentation, and ongoing administration and technical support.

This comprehensive resource covers everything you need to understand about executive benefits:

Eligibility and Plan Design

• Who qualifies for executive benefit programs (CEOs, CFOs, Presidents, VPs, and other key positions)
• How to stay compliant with Department of Labor requirements
• Flexibility options for your organization’s specific needs

Types of Executive Benefit Programs

• Deferred Compensation Plans (DCP): Allow deferral of up to 100% of salary, bonus, commissions, and incentives
• Supplemental Retirement Plans (SERP): Company-funded programs that enhance qualified plan benefits
• Loan Regime Split Dollar (LRSD): Life insurance arrangements providing death benefit protection and potential tax-free retirement income
• Disability Insurance: Supplemental coverage for highly compensated employees

Implementation Process

Learn about EBS’s proven 4-step engagement process, including fact-finding, plan design and analysis, implementation and documentation, and ongoing administration and technical support.

With over 30 years of experience helping clients develop executive benefit plans, EBS uses a highly analytical, collaborative, and cost-effective approach. Our data-driven methodology ensures your executive benefits program remains compliant while meeting your organization’s strategic objectives.

With the Executive Benefits 101 Guide, you’ll discover how these powerful tools can help your organization attract, reward, and retain the top talent that drives business success.