to The Newport Group’s “Executive Benefits: A Survey of Current Trends,” the prevalence of
these plans in the large corporate marketplace remains stable in spite of the
recent economic downturn.
The Newport Group survey focuses on two
main types of non-qualified plans: non-qualified deferred compensation (NQDC)
plans and defined benefit supplemental executive retirement plans (DB SERPs)—as
well as supplemental long-term disability benefits and other executive
to the survey, 51% of responding companies report having DB SERPs. These plans
have seen a modest decrease in utilization over the past few years, primarily
due to the expense often associated with offering these plans.
percent of those employees eligible for an NQDC plan elected to participate in
their plan. Participation has returned to previous levels, despite a brief
decline reflecting the market turmoil of recent years.
survey results also show there is a continued popularity of diversified
investment options (401(k)-type menus). However, a noteworthy trend is the
increased popularity of fixed-rate options that likely reflect participant
interest in investments that offer reasonable rates of return with lower
volatility and risk.