Employer SERP (Supplemental Executive Retirement Plan)
These defined benefit, or defined contribution, plans are designed to attract and retain key employees. In most cases, the plans are established as an employer play all program, similar to the employer deferral plans, but where the key employee is given a benefit based upon a formula as a percentage of salary, years of service, or a flat dollar amount. These benefits usually will not be vested until retirement, death, disability or change of control and also may provide an early retirement provision. Each employee could be given a different formula and/or benefit and the employer must discriminate in favor of the highly compensated or management employee.