ADP Executive Deferred Compensation

Recruit, retain, and reward key employees with Executive Deferred Compensation (EDC).

Go beyond traditional retirement plans

Traditional retirement plans aren’t always enough for your most valuable employees:

  • A traditional 401(k) limits how much employees can save annually
  • Better retirement packages elsewhere can lure key employees away

Keep your top performers motivated and retirement ready with ADP Executive Deferred Compensation (EDC). Plus, you can combine an ADP EDC solution with other ADP services, like payroll or talent management, or use it as a standalone, best-in-class solution.

Non-Qualified Deferred Compensation (NQDC)

With an NQDC plan, key employees can save more for retirement than with a 401(k) plan alone. In addition to voluntary salary and bonus deferrals of up to 100% of compensation, company contributions may include:

  • performance-based awards
  • 401(k) restoration
  • matching contributions

of Plan Sponsors say NQDC is a vital component of a competitive benefits package

(Source: 2018 Principal Trends in Non-qualified Deferred Compensation Report)

Long-Term Incentive Plan (LTIP)

LTIPs help align incentives in your organization by awarding key employees based on individual and company-wide performance. You can choose who receives annual awards, how much they get each year, and attach a vesting schedule to encourage retention. Awards can be converted to restricted or phantom stock, or accrue earnings based on an interest rate or mutual funds.

of privately held companies sponsor a LTIP

(Source: February 2018 Incentive Pay Practices - Privately Held Companies by WorldatWork and Vivient Consulting)

We wanted to offer our executives a voluntary deferred compensation plan but were concerned about the administrative burden for our Payroll and Finance team. ADP Executive Deferred Compensation has provided a great solution. Initial set up was very easy and the entire process has been seamless — including annual enrollment.

Jennifer Fincik, Director of Finance
AAA Western & Central New York

ADP has
$8.7b
in NQDC plan liabilities and is ranked a top 5 record-keeper*
ADP has
21,000+
NQDC plan participants worldwide

The ADP Approach

Objectivity

Unlike many of our competitors, ADP is not compensated for selling assets. That means full transparency and the freedom to creatively finance your plan liability. Plan earnings can track various benchmark investments, from interest rates and mutual funds to company stock, insurance-based variable accounts, and privately managed accounts.

Flexibility

One size doesn’t fit all - especially in retirement plans. We partner with your legal and financial advisors to design, implement, and administer a plan that’s best for your business—from non-qualified plan design (voluntary NQDC, mandatory bonus deferral, and 401(k) restoration) to Supplemental Executive Retirement Plans (SERPs), and LTIPs, including phantom and restricted stock.

Technology

We leverage what ADP does best—data management—and combine it with our commitment to investing in technology improvements and new features to provide a best-in-class solution.

Focus

Our experienced, knowledgeable professionals are 100% focused on deferred compensation. We believe a personal, high-touch relationship is the best way to ease plan management challenges.

Get Pricing Specific to Your Business

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* 2015 NQDC/457(f) Buyer's Guide from PLANSPONSOR Magazine

A NQDC plan remains in the employer's general assets and is subject to potential loss. The funds in this trust are still part of the company's general assets and would be subject to creditors' claims in a corporate bankruptcy.

Only registered representatives of ADP Broker Dealer, Inc (Member FINRA) or, in the case of certain products, a broker-dealer firm that has executed a marketing agreement with ADP, LLC, may offer and sell ADP retirement products or speak to retirement plan features and/or investment options available in such ADP retirement products. Registered representatives of ADP Broker-Dealer, Inc. do not offer investment, tax or legal advice to individuals. Please consult with your own advisors for such advice.