Deferred Compensation Plan For Highly Compensated Employees In Fairfax
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State:
Multi-State
County:
Fairfax
Control #:
US-00418BG
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Word;
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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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With the Deferred Compensation Plan it is never too early, or too late, to start saving for your future. Newly hired Merit employees will be automatically enrolled in the Deferred Compensation Plan.The 457(b) Deferred Compensation Retirement Savings Plan lets you set aside pre-tax dollars to save for retirement. Deferred compensation is a portion of an employee's compensation that is paid at a later date. The plan must be limited to provide benefits for a select group of management or highly compensated employees. Welcome to the award winning City of New York Deferred Compensation Plan! Deferred compensation is a type of employee benefit that is most often used to attract highly sought after employees, such as executives or officers. City employees are also given the opportunity to participate in an Internal Revenue Service approved deferred compensation program (457 plan). These plans have been dubbed "golden handcuffs'' because they're often used as a retention tool for key talent or highly compensated employees.