Deferred Compensation Plan In Retirement In Harris
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State:
Multi-State
County:
Harris
Control #:
US-00418BG
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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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It's designed to be a supplement to your pension and is an additional way to invest long-term directly from your pay. A voluntary retirement savings plan that provides quality investment options, investment educational programs and related services.Deferred compensation plans are designed for state and municipal workers, as well as employees of some tax-exempt organizations. The New York City Deferred Compensation Plan (DCP) allows eligible New York City employees a way to save for retirement through convenient payroll deductions. Put even more money toward retirement with the 457 deferred compensation plan (deferred comp). Comp offers state employees a smart, simple way to save for retirement.