Funding : Basics

Articles

by Richard DeVita & Scott Holton

How your company finances its NQDC plan is an important decision with long-lasting consequences. This article gives an overview of funding techniques and the factors to consider.

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FAQs

How is a SERP funded?

According to the 2009 Clark Consulting Survey on Executive Benefits, 39% of the surveyed companies’ SERPs are…

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What is the tax treatment of company-owned life insurance when my company pays part of the death benefit to my beneficiary?

When you have a separate agreement with your company to pay some portion of this money to your beneficiary…

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More FAQs:

Can I freely change my investment choices within my account?

Will my account balance reflect investment returns?

After I choose investments, how does the company invest my deferred amounts?

UPDATES! What investment choices are made available to me?

Is there any investment return on the amount I defer?

For my NQDC deferrals, will I have an account that I can look at and monitor?

Why would my company use one type of informal funding, such as COLI, instead of mutual funds?

UPDATES! How can mutual funds or other investments be used to informally fund NQDC?

Do I get my own investment choices with corporate-owned life insurance?

UPDATES! How can my company use corporate-owned life insurance to fund its NQDC obligations?

Why can’t the actual salary or bonus I defer directly fund my NQDC plan?

Why would my company want to informally fund the plan?

UPDATES! Is my NQDC informally funded so that money will be available to pay me when the time comes for distributions?