SERPs: funded plans challenge the unfunded

Biggins, Peter
January 1989
Financial Executive;Jan/Feb1989, Vol. 5 Issue 1, p24
Academic Journal
This article examines how firms are funding their supplemental executive retirement plans (SERPs). Traditionally, these plans have been underfunded with companies choosing to save the money in the short term and pay the benefits out of general assets. But as the size of these plans grows, how they are funded is being reassessed. Three alternative options are a secular trust, annuities and life insurance. Each has advantages and disadvantages such as investment flexibility, expenses and tax status.


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