The seventh annual MullinTBG/PLANSPONSOR Executive Benefits Survey shows a vast majority of companies (91%) are now offering NQDCPs. Higher tax rates and historically low interest rates present potentially greater challenges for highly compensated employees trying to save for retirement and meet other financial goals, making deferring compensation into a nonqualified plan especially attractive.
The survey also highlights that more companies are offering executives financial planners to help create effective retirement planning strategies. In 2012, 52.7% of firms offered financial planning benefits, compared with 34% in 2009.
“This year’s survey results have once again confirmed the enduring appeal of nonqualified plans in both helping high income earners achieve a secure retirement and meeting an important need in the marketplace,” said George Castineiras, Prudential Retirement’s senior vice president of Total Retirement Solutions. “I believe that NQDCPs have the potential to become even more relevant for high-income earners looking to increase their savings power and lessen tax impacts in the coming years.”