Deferred Compensation Agreement Template With Life Insurance In Mecklenburg
Category:
State:
Multi-State
County:
Mecklenburg
Control #:
US-00417BG
Format:
Word;
Rich Text
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Description
Deferred compensation is an arrangement in which a portion of an employee's income is paid out at a date after which the income is actually earned. A Deferred Compensation Agreement is a contractual agreement in which an employee (or independent contractor) agrees to be paid in a future year for services rendered. Deferred compensation payments generally commence upon termination of employment (e.g., retirement) or death or disability before retirement. These agreements are often geared toward anticipated retirement in order to provide cash payments to the retiree and to defer taxation to a year when the recipient is in a lower bracket. Although the employer's contractual obligation to pay the deferred compensation is typically unsecured, the obligation still constitutes a contractual promise.
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The purpose of the plan is to provide a means for a public employee to contribute a portion of the employee's compensation to a tax-deferred investment account. Future benefits from the 457(b) Plan will reflect the amount of a participant's voluntary salary deferral contributions plus earnings.Vesting is immediate. Employees have the option to participate in a choice of IRS 457 deferred compensation plans - pretax and Roth post-tax options. You can review the plan documents, policies, reports, and disclosures for the NC 401(k) and NC 457 Plans on the Supplemental Retirement Board of Trustees' page.