NAPA unveils new adviser designation for nonqualified plans

The credential will confirm an adviser’s expertise in working with nonqualified deferred compensation and executive compensation plans.

Employers seeking to compensate talent — and advisers seeking to burnish their credentials — have a new certification to consider as the National Association of Plan Advisors has launched a program focusing on nonqualified plans.

On Wednesday, NAPA unveiled the Nonqualified Plan Advisor credential, which confirms an adviser’s expertise in working with nonqualified deferred compensation and executive compensation plans. NAPA said it will furnish study materials to help candidates prepare for the NQPA certification exam, including an online course that highlights tax considerations, plan financing, and marketing and implementation.

A nonqualified retirement plan is one that’s not subject to the Employee Retirement Income Security Act of 1974. Most nonqualified plans are deferred compensation arrangements, or an agreement by an employer to pay an employee in the future. Because nonqualified plans can offer substantial future benefits, they can be especially helpful in attracting and holding onto talent.

“Attracting and retaining the unique talent sets of the C-Suite require programs that go beyond profit-sharing and 401(k) programs,” Jeff Acheson, a wealth adviser and one of the authors of the NQPA program, said in a statement.

Acheson praised the flexibility of nonqualified plans, as well as their ability to fund “the shifting needs of every organization.”

NAPA said it will furnish study materials to help candidates prepare for the NQPA certification exam, including an online course with two modules. The plan fundamentals module highlights tax considerations, plan financing, and marketing and implementation. The advanced plan design module deals with employer incentive and equity plans, life insurance and informal funding of nonqualified plans, nonprofits and rabbi trusts, as well as practical case studies.

Each part is comprised of five interactive modules, followed by a 50-question assessment, according to NAPA.

NAPA confirmed there’s a “modest cost” for the exam. However, the program itself is free for NAPA adviser members.