 At retirement, or in the general future, money can be withdrawn and the executive can support his or her savings using pre-tax capital.Also known as a "Top Hat" program, a SERP is funded entirely by the employer and consists of a retirement plan that implements benefits apart from those covered in other retirement plans such as IRA (Individual Retirement Account), 401(k) or NQDC plans.This is usually done through Permanent (Whole Life) Insurance.