Implications of NQDC in a Spinoff

[Guest kp]

In a spinoff of a sub, it has been determined that the "same desk rule" applies and the employees that go to the sub will be considered active for a DC plan. Are there related implications for the NQDC plan for employees that go to the sub?

[LCARUSI]

It depends on the language in the NQDC. If there is specific language dealing with this situation, then that language should govern.

Since this is a nonqualified plan, there is no statutory requirement to observe the same-desk rule or for that matter most other rules relating to qualified plans. So if the plan language calls for treatment which you don't want, you can amend the Plan.