Serps, Were you told to opt out of serps?

It is always beneficial to think about your long term financial future. Retirement plans can help you to accomplish this. One of these plans is the Supplemental Executive Retirement Plan (SERP). This type of plan provides more benefits than the regular IRA or 401 (k) plan. Due to its special advantages, key company employees such as executives prefer the SERP plan. Essentially, the SERP ensures that key employees can maintain their high standards of living even in their retirement. If you’re an executive in your company, you can now calculate how much you will receive by using the SERP compensation calculator. Furthermore, there are specific ways through which you can make a Serp Claim. Discover more about this below.

Serps, Were you told to opt out of serps?


Calculating SERP compensation

There are special calculators which you can use to discover the amount of compensation which you get through this retirement plan. Some of these are freely available online. However, other methods of discovering this are proprietary and can be found with professional accountants such as those who work at Missold Pension UK. You can access their services through their dedicated website.

Specifically, the process to discover a SERP compensation begins with finding out your surplus earnings. These are calculated by first of all finding your lower and upper earnings limits for each of the years that you are part of the SERP plan. After that, the difference between these limits is calculated. This will give your total surplus earnings.
More about the SERP claim

Seeing as the SERP is a deferred compensation plan, the money associated with it is paid later than your year of service by 12 months. This compensation is performed no matter if the compensation in question was funded, vested or at risk of forfeiture. Upon reaching the age of retirement, you can make an application so as to receive this compensation through your personal lawyer or your company’s retirement benefit application department.

Types of SERPs

There are four types of SERPs. One of these is the defined benefit type of SERP. This one identifies the exact amount of money that will be paid as compensation to an executive upon retirement. The figure is arrived at through a calculation involving a combination of the employee’s salary and years of service.

The defined contribution variety of SERP is delivered as a lump sum of money. It specifically considers the period of time that an employee has provided services to the company. After that, the money is delivered into a specific account indicated by the employee themselves.

A cash -balance type of SERP is one where the executive employee receives pay and interest credits as compensation. The amounts involved are essentially percentages of the contribution that the employee has delivered to the company over their years of service.

As indicated in its name, the target-benefit type of SERP is one where a specific date during one’s retirement is identified. After that, a compensation calculated using actuarial methods is delivered on this particular day.


The Supplemental Executive Retirement Plan (SERP) ensures that you can live comfortably even in your retirement. You can calculate your serp claims easily with the assistance of Missold Pension UK prior to filing for one. The guidelines for this are indicated clearly above.

Posted in: Finance