Supplemental Executive Benefit Plans (SERP) for Trade and Professional Associations
Practice Overview
Inside the tax-exempt division of Aon’s executive benefits practice, we have a dedicated team of experts focusing exclusively on Trade and Professional Associations. Tax-exempt employers – like Trade and Professional Associations – are uniquely challenged with respect to competing for the best talent against “for profit” entities due to their inability to offer key executives equity or stock.
How Aon Can Help
Modernizing Supplemental Executive Retirement Plans (SERP) is essential for organizations seeking to effectively attract, retain and reward top talent. To remain competitive, organizations must adopt the most innovative and sophisticated strategies available. It is recommended for boards and executive teams to gain a thorough understanding of all SERP designs and funding options. This knowledge enables them to carefully evaluate key factors, including:
- Cost-effectiveness
- Tax efficiency
- 990 reporting considerations
- Implications of the 21% excise tax introduced by the Tax Cuts & Jobs Act
By doing so, organizations can ensure both cost-efficiency for their operations and outcome efficiency for their executives. Ultimately, this approach supports the critical objectives of recruiting, retaining, and rewarding top-tier talent.
Aon’s Trade and Professional Association Services – SERPs
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SERP Design
Establish a comprehensive SERP compensation philosophy to align with organizational goals and attract top talent.
Determine specific SERP targets to ensure competitive and effective executive compensation strategies. -
SERP Funding
Explore various funding options such as Split-Dollar Arrangements, 162 Bonus Plan, and 457(f) to support SERP initiatives.
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SERP Communication and Implementation
Develop clear communication strategies and implement SERP plans effectively to ensure executives understand their benefits and the value they bring.
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SERP Administration
Ensure seamless administration of SERP plans to maintain compliance and operational efficiency.
