The Pentegra executive benefit plan advantage
Executive benefit plans can be designed exclusively for key employees — providing an optimal solution to benefit limitation issues.
An executive benefit plan is a contractual commitment by an employer to a select group of employees to provide supplemental retirement benefits at a future date. Because there are no coverage, eligibility or participation requirements, an employer can decide to provide nonqualified deferred compensation benefits only to a select group of executive or highly compensated employees. This allows the employer to provide rewards and incentives based on an employee-by-employee approach, offering maximum design flexibility.
Executive benefit plans are a critical component of any corporate benefits strategy. Executive benefit plans provide flexibility in developing benefit compensation strategies, as they can be used to:
- Provide replacement income at retirement based on total (non-limited) compensation
- Reward, attract and retain key executives
- Replace benefits lost due to IRS limits on qualified plans
- Provide benefits in addition to those under qualified plans
- Defer compensation
- Provide enhanced benefits in the event of an acquisition or other change of control
Pentegra provides a full range of executive benefit plan services. Our consultants work with you to develop programs that meet both your benefit and cost objectives. We can assist you in determining the objectives you want to achieve with a nonqualified program by analyzing which employees are being impacted by IRS limits, and which key employees you might wish to reward with coverage under a nonqualified arrangement. Our extensive array of nonqualified products permits maximum design flexibility, whether you are starting a plan or revamping an existing program.