Deferred Compensation Plan For Highly Compensated Employees In Los Angeles
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State:
Multi-State
County:
Los Angeles
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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The City of Los Angeles Deferred Compensation Plan is a voluntary tax-advantaged governmental 457(b) plan that allows you to save a portion of your salary now. How do I make contributions to my DCP account?At enrollment, select a percentage of pay or dollar amount to contribute each pay period. This article initially provides a brief summary of the timing rules for income tax withholding applicable to 457(b) and 457(f) plans. Elective deferral plans allow an employee to defer compensation, including salary and bonuses, until a later date. The City of Los Angeles Deferred Compensation Plan is a supplementary retirement savings plan. It is available to all full-time employees. The plan must be limited to provide benefits for a select group of management or highly compensated employees.