Why Deferred Compensation?
Simply stated, a non-qualified deferred compensation plan is an arrangement whereby compensation earned by an employee in one year is paid to him or her in a later year. Because non-qualified deferred compensation plans are not subject to the complex and burdensome rules imposed on qualified retirement plans, such plans offer an employer a unique opportunity to provide a benefit which is tailored to meet its specific objectives. Advantages of Non-Qualified Plans Both employers and employees have much to gain from a properly structured “pay me later rather than pay me now” plan. The advantages associated with non-qualified deferred compensation plans include: *The employer can pick and choose which employees are to be covered by the plan. *The plan can provide supplemental retirement income to highly paid employees. *Employers can offer greater compensation packages and thereby compete for “top performers.” *The plan can act as a “golden handcuff” for key employees by tying retirement b
