Executive benefits (BenefitsLink.com)Headlines re Executive benefits, gathered by BenefitsLink.comGuidance Overview Code Section 409A Remedial Amendment Period Scheduled to End December 31, 2008 (PDF)- (Found July 8, 2008 ) 2 pages. Excerpt: "The final regulations under 409A relating to the deferral of compensation of employees (other than through tax-qualified plans), consultants, directors, and other service providers will be effective January 1, 2009." (Dechert LLP)http://www.dechert.com/library/EB_06-08_57_Internal_Revenue_Code_409A_Remedial.pdf Guidance Overview IRS Deferral of Amendment Deadlines for Deferred Compensation Plans (PDF)- (Found July 8, 2008 ) 5 pages. Excerpt: "This article will provide a bit of historical context for Section 409A, will describe its basic provisions as seen through the lens of the final regulations, and will conclude with a list of what most businesses should be doing to prepare themselves for the January 1, 2009, moment of reckoning." (Adams and Reese LLP)http://www.adamsandreese.com/pdf/EmpBenefitsBulletin0508web.pdf Pensions for Executives Often Appear Unfair- (Found July 8, 2008 ) Excerpt: "Most chief executives continue to enjoy lavish pension plans -- on top of their multimillion-dollar pay packages and sundry other perks. How can that be fair The short answer, of course, is that it isn't. But fairness was never the point. This is about giving CEOs what they want, regardless of what's given to other company employees." (Los Angeles Times)http://www.latimes.com/business/la-fi-lazarus25-2008may25,0,286240.column Guidance Overview Top-Hat Plan: Oral Promise May Be Enforceable- (Found July 8, 2008 ) 2 pages. Excerpt: "A federal district court recently concluded that an executive may base a claim for top-hat plan benefits on oral, rather than written, misrepresentations. This is notable because the court distinguished top-hat plans from plans that are subject to ERISA's plan document requirement, where the court indicated that oral promises would often be unenforceable. The case is Hay Group, Inc. v. Bassick (N.D. Ill. 2008)." (Utz, Miller, Kuhn & Eickman, LLC)http://www.utzmiller.com/article_display.html?did=NTk=&article=1 Helping Small Businesses Set-up Retirement Plans- (Found July 8, 2008 ) Excerpt: "By itself, a retirement plan sponsored by a small business or a professional practice might be modest, with $1 million or less in assets. By pursuing several plans, though, advisors may discover that 'real money' is attainable." (Financial Planning)http://www.financial-planning.com/asset/article/613201/you-gotta-have-plan.html?pg= Maximizing Retirement Compensation for Senior Executives- (Found July 8, 2008 ) Excerpt: "Given . . . restrictions, particularly for companies where retirement plan participation is low, finding additional ways to provide higher retirement income for senior executives can be important for recruiting and retention purposes. It takes good planning, but there are several options available. Generally, they include: Boosting overall retirement plan enrollment; Creating specific types of qualified retirement plans; Offering exclusive Supplemental Retirement and Compensation.http://www.inddist.com/article/CA6567582.html?industryid=48323 Guidance Overview Deadline Approaching for Amending Deferred Compensation Arrangements under Section 409A- (Found July 8, 2008 ) Excerpt: "All covered deferred compensation arrangements must be amended on or before December 31, 2008. The process of identifying and adopting any necessary amendments to existing compensation arrangements can be time consuming and complex. This update provides general background information on Section 409A and offers practical tips and guidance on actions that should be taken immediately in light of the upcoming deadline." (Perkins Coie LLP)http://www.perkinscoie.com/news/pubs_detail.aspx?publication=1693&op=updates Official Guidance Employee Not Entitled to FICA Tax Refund Where Deferred Compensation Plan Is Terminated Prior to Benefit Payment- (Found July 8, 2008 ) Excerpt: "Drawing an analogy to a poor investment choice, the IRS Office of Chief Counsel has advised that an employee whose nonqualified deferred compensation plan was terminated before the benefits were fully paid is not entitled to a refund of the FICA taxes previously imposed on the unpaid benefit amounts. IRS Chief Counsel Advice Memorandum, No. 200823001 (June 6, 2008)." (Deloitte via BenefitsLink.com)http://benefitslink.com/articles/guests/washbull080616.html Opinion Rethink That Executive Deferred Comp Plan Now- (Found July 8, 2008 ) Excerpt: "So now is an excellent time to revisit decisions about deferred compensation. Many expect tax rates to rise by 2011, when the Bush tax cuts expire, boosting what will be owed when money is pulled from the plans. Moreover, times are tough, and if your employer runs into trouble you may not be able to recover the money in your plan. Unlike savings in a 401(k), deferred comp isn't protected from creditors in a corporate bankruptcy." (BusinessWeek)http://businessweek.com/magazine/content/08_26/b4090066476826.htm?chan=magazine+channel_pe... Rep. Waxman Targeting Compensation Committees and Their Consultants- (Found July 8, 2008 ) Excerpt: "Rep. Henry Waxman has been a leading voice in the fight against excessive executive compensation, grilling high-profile Wall Street executives on their severance pay and criticizing compensation consultants. But the California Democrat may do more to address the issue, such as focusing on other 'insiders' who are involved in the compensation-approval process." (Financial Week; free registration required)http://www.financialweek.com/apps/pbcs.dll/article?AID=/20080623/REG/287729306/-1/FWDailyA... |