What Is a Supplemental Executive Retirement Plan (SERP)?

A supplemental executive retirement plan (SERP) is a retirement plan that provides benefits in addition to those offered by a company's regular retirement plan. SERPs are often used to attract and retain top executives by providing them with enhanced retirement benefits.

Who is eligible for special retirement supplement?

The special retirement supplement (SRS) is a benefit paid to certain federal employees who retire under the Federal Employees Retirement System (FERS). To be eligible for the SRS, you must retire on an immediate annuity (that is, you cannot retire on a deferred annuity), and you must have at least 20 years of service (or be at least age 62 with at least five years of service). If you qualify for the SRS, it will be paid to you until you reach age 62, at which point you will begin receiving your regular Social Security benefit. Do you pay tax on Serps? No, you do not pay tax on Serps. Is a SERP a defined benefit plan? No, a SERP is not a defined benefit plan. A SERP is a supplemental executive retirement plan, which is a type of deferred compensation arrangement. As such, it is not subject to the same rules and regulations as defined benefit plans. How is a SERP paid out? There are a couple different ways that a SERP (Supplemental Executive Retirement Plan) can be paid out. The first is that the payments can be made in a lump sum. This means that the entire amount of the SERP will be paid out all at once. The second way that a SERP can be paid out is in the form of an annuity. This means that the payments will be made over a period of time, typically for the rest of the recipient's life. Is a SERP a nonqualified deferred compensation plan? No, a SERP is not a nonqualified deferred compensation plan. A SERP is a supplemental executive retirement plan, which is a type of qualified retirement plan.