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Deferred Chrismass Club


Guest David Pursifull

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Guest David Pursifull

A local business planned to roll out a new Chrismass Club savings plan in which the company would match a percentage of the money an employee deferred based on the departments Customer Service Rating. Would this type of plan fall under the provisions of ERISA and if it does what restrictions would that place on the plan

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Dave

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your questions raises other questions. Such as, what is being deferred and for how long? When is the payout? If its merely an incentive for employees to save, and is paid out at Christmas, its probably not an ERISA pension plan. To have one of those you need to defer income to termination of employment or beyond. Certainly if its paid out in the same year of the deferral, its hard to imagine that ERISA would apply, but then you'd also have to ask yourself why defer in the first place. Good luck.

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