A consultant's recent survey of employers found that 82% use nonqualified defined contribution plans, and 90% offer supplemental executive retirement plans.
The survey by Clark Consulting L.L.C., Dallas, found NQDC plans are more likely than SERPs to be informally funded, such as through insurance or annuities. Among employers responding to the survey, 71% reported informally funding their NQDC plans; and 45% reported informally funding their SERPs.
Corporate-owned or trust-owned life insurance is the most commonly used informal funding vehicle for both types of plans. Clark found that 56% of respondents informally funding their NQDC plans and 100% of those informally funding their SERPs use COLI-TOLI.
