The new Executive Defined Benefit Plan is designed to help bridge the gap companies face in providing retirement benefits for highly compensated executives. This is accomplished through an employer-provided supplemental retirement benefit paid to executives in excess of qualified plan limitations on a pre-tax basis, according to a news release.
In addition, employers can tailor the plan by the selection of the benefit formula, including the use of benefit offsets, to meet the retirement needs of their executives. Employees are not required to make contributions and bear no investment risks for the benefit.
Further, the new turnkey plan does not require administrative services be handled through a separate third-party administrator. Rather, administrative services are already handled by Executive Benefit Services, Inc, which includes:
- daily valuation of corporate assets on Executive Benefits Services’ Web site
- online, 24/7 access to participant account information
- annual reports including FAS 87 accounting disclosure reports, distribution reporting and financing analysis
- personalized participant statements.