What is included in Compensation

[Guest tholbert]

I am doing some research on bonuses being included in the definition of compensation for Defined Benefit Plans. Does anyone out there know how to find out what percentage of bonus most Fortune 500 companies are using for compensation for their Defined benefit Plans? I looked at a few proxies at FreeEdgar Online, but they don't seem to mention if any portion of bonuses over a certain dollar amount are excluded from the definition of compensation.

[MGB]

KPMG and Hewitt have information in their surveys. Sorry, I don't think these ares available online and cost a lot to buy.

Source: Hewitt SpecSummary, US Salaried 2000 (1020 major US employers, including 58% of Fortune 500)

Description: Recognition of Bonus in Definition of Pay (not including sales bonuses or incentives nor commmissions or overtime)

Bonus included: 67%

Partially included: 2%

Not included: 31%

Not quite exactly the question:

Source: KPMG, Retirement Benefits in the 1990s: 1998 Survey Data

Description: Compensation Used in Calculating Defined Beneft

Base Pay 27%

W-2 26%

W-2 + Nontaxed 33%

Other 14%

[Guest Harry O]

I have worked at or closely with a number of Fortune 25 companies. All of them included bonuses in their definition of pensionable pay.

Be careful. In order to pass nondiscrimination testing, you may also need to include overtime payments for rank and file employees.

[david rigby]

As implied by the prior responses, many times the definition of comp will include bonuses because the plan defines comp as "W-2 pay" or something similar. Of course that definition will also automatically pick up overtime.