Nonqualified Plans: Plan Services
Nonqualified deferred compensation plans
A nonqualified deferred compensation plan is a specific type of nonqualified executive benefit plan. It is sponsored by the employer and typically designed to supplement a company's qualified plan. Qualified plans have limitations and restrictions on contributions, which particularly affects highly compensated employees ability to save for retirement. A nonqualified deferred compensation plan provides these key employees an additional saving option to address this potential retirement savings gap.
Subject matter experts
Your company has the flexibility to design its nonqualified deferred compensation plan to meet its objectives—to retain, reward and help retire key employees essential to your organization. As a leading provider of nonqualified deferred compensation plans, you can feel secure knowing The Principal has experience working with clients of various sizes, across a wide variety of industries.
You will have access to the people, systems and technology to help you:
- Design the retirement plan
- Answer your questions
- Address your concerns
- Simplify the ongoing, specialized plan administrative services
Expert consultation and subject matter specialists
During the plan design phase, we work with your team regarding tax, legal and accounting issues to help design your retirement plan. This includes:
- Problem solving
- Accounting and actuarial support
Industry specific expertise and commitment
No matter the size of your business, we can develop solutions for both for-profit and not-for-profit organizations. Our long-term dedication to the nonqualified industry is demonstrated by our decades of experience in offering these solutions.
A nonqualified deferred compensation plan is an unfunded and unsecured contractual obligation to pay benefits to a plan participant in the future. Your company can choose to finance this liability in one of three ways:
- Taxable investments
- Corporate owned life insurance
And, underlying these financing options, The Principal brings a focused investment management strategy to help bring value and flexibility to your retirement plan.
Plan administrative services
Exceptional administrative services for plan sponsors and plan participants are important in the success of the benefit program. Unlike other providers, The Principal provides a complete benefit program. To ensure your retirement plan is serviced the same way you designed it, we don't outsource your administrative services to a third party. We are the sole provider of all services, which gives you just one source to contact with questions.
When you work with The Principal, you and your plan participants will get state-of-the-art services so that you can spend more time focusing on the business. Our service platform is designed specifically for servicing executive benefit solutions.
You'll get an edge with The Principal
Expertise. Simplicity. Service. All in one tailored retirement plan. As a retirement services leader with decades of executive benefits experience, you can trust our range of solutions to help maximize your benefits. We make it easier by providing what you need in one place:
- Plan design
- Financing options
- Administrative services
And, as your one source, we deliver a consistent level of service you should expect.
Have questions? Contact a local representative today for more information or to find a financial professional in your area.