Section 16.6 Nonqualified Deferred Compensation Arrangements

• Library: Family Law Deskbook and 2014 Supp

2. (§16.6) Nonqualified Deferred Compensation Arrangements

Any deferred compensation arrangement that is not subject to the qualification criteria, such as participation, vesting, funding, and nondiscrimination standards, as first established in ERISA, is generally considered a “nonqualified” deferred compensation arrangement. These plans can be designed to cover a selected highly paid employee or group of employees, and there are none of the other “fairness” requirements that would otherwise protect all qualifying employee/participants in a qualified deferred compensation plan. Nonqualified plans, therefore, are the most flexible and the least regulated deferred compensation arrangements...