Phantom Stock Plan--ERISA?

[sloble@crowleyfleck.com]

When is a phantom stock plan an ERISA plan? This one is a single employee (basically like a contract for a bonus in the form of phantom stock (cash) upon sale of company)

[QDROphile]

You need to look at the terms of the plan in light of the definition of "pension plan" under section 2 of ERISA. You also need to consider if the arrangement is a "plan" under ERISA. A single person contract is probably not an ERISA plan, but there are court cases to the contrary. If the arrangement is an ERISA pension plan, it might be exempt from most ERISA requirements as a "top hat" plan. You should also consider compliance with securities laws.