The non-qualified benefits arena is complex and requires knowledge of the most recent tax and legal issues, funding issues and alternatives, and accounting implications of both benefits and funding. It is likely that a company's own personnel will find it difficult to develop the expertise needed to deal with the complexity of matching non-qualified plan design, funding and securing choices to their firm's goals and priorities. Therefore, before beginning the non-qualified plan design process a company should choose an advisor based on experience, expertise, and administrative capability.

Experience & Expertise
A firm's experience will be apparent from its list of existing clients. A list of well-known clients is important; however, a more relevant factor to an employer may be experience with clients of a comparable size and industry. The longer a firm has been in business, working with all kinds of companies, the more likely it is that it has successfully met a variety of executive benefit needs.

Administration
Since a company's non-qualified plan will have a life at least as long as its youngest participant (longer if new participants enter the plan in later years) an executive benefits firm's administration capability is vital to the plan's success. The firm should have the ability to extend the plan design process into a flexible, customized client service package. Service should include established procedures for handling plan transactions and changes, and documentation of the plan's initial design (including the reasons for design decisions), plan history and ongoing plan activity. Plan participants should be kept up-to-date on their benefits and tax or legal developments that affect them. The firm should also have a commitment to understandable communication with the Client Company’s management and the plan participants.

Conclusion
Although some companies regard non-qualified plans as an executive perk, erosion of retirement income from traditional qualified plans has made non-qualified benefits an integral component of executive compensation. SERPs, deferred compensation, and other non-qualified benefits are quickly becoming a necessity for companies that want to stay competitive in attracting and retaining top executive talent.