TI-TRUST, Inc. is a Leading Provider of Nonqualified Plans
With expertise and experience in nonqualified plans, TI-TRUST administers nonqualified plans to meet the needs of your company and employees. We can help you find the ideal mix of qualified and nonqualified plans for maximum flexibility. In addition, we will ensure you are compliant with applicable federal regulations to give you peace of mind.
What is a Nonqualified Plan?
A nonqualified plan is an agreement from an employer to compensate certain employees or directors at a future date for current services. These plans typically provide more design flexibility and are not subject to the same government requirements that apply to other qualified plans such as a 401(k) plan or IRA.
Nonqualified plans are generally established to:
- Supplement retirement benefits for a select group of management or highly compensated employees
- Attract, motivate, reward, and retain key employees with benefits often accessible before retirement
- Provide a benefit to individuals who are not employees, such as directors, and who do not meet the requirements for participating in an employer’s qualified plan
TI-TRUST serves as trustee, consultant, or custodian for many different types of plans, including, but not limited to:
- Excess Benefit Plans - An employer’s funded or unfunded plan to provide benefits for select employees in excess of what can be saved because of limits applicable to most qualified plans. These are ideal for highly compensated employees.
Examples of Excess Benefit Plans include: Deferred Compensation Plan (DCP), Stock-Based Incentive Plan (SBIP), Recognition and Retention Plan (RRP), and Director Deferred Fee Plan (DDFP)
Other options include:
- Rabbi Trust - An irrevocable trust established for the participant’s benefit. The plan assets are beyond the control of the employer but are subject to claims of the employer’s general bankruptcy and insolvency creditors.
- Stock Appreciation Rights (SARs) - Rights of participants - who do not have to be employees - to be paid an amount equal to the difference between the value of a specified number of shares of employer stock on the date the SARs are granted and the value of the stock on the date the SARs are exercised.
- Supplemental Executive Retirement Plans (SERPs) - An employer’s unfunded plan that provides deferred compensation for a select group of management or highly compensated employees. This is also sometimes referred to as a “Top Hat Plan.”
With our comprehensive and process-driven approach, TI-TRUST can help identify the plan structure and parameters that best meets the needs of your targeted employees.