Jump to content
Sign in to follow this  
austin3515

Vesting upon Change in Control

Recommended Posts

Deferred comp plan provides that benefits accrued will vest based on a rolling vesting schedule.  The sponsor and the Participants want the money to become vested if the sponsor is bought.  Any words of advice and/or caution? 

Share this post


Link to post
Share on other sites

Vesting would trigger application of payroll taxes, unless you have a DB SERP formula with a pension offset where the present value cannot currently be reasonably  ascertained.

Share this post


Link to post
Share on other sites

AUSTIN---

I think if I were the participant, I'd want a rabbi trust to protect my account balance against change of heart or change of control by the employer

because a new employer could try to renege on the agreement to pay out. Others may feel differently.

BOB

Share this post


Link to post
Share on other sites

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now
Sign in to follow this  

×
×
  • Create New...