moving expenses

[lexi]

an ER has a fringe benefit plan that provides for an $8K relocation reimbursement to be used within 12 months of the date of transfer.

the client wants to hire an EE who potentially would not use the relocation reimbursement for 5 years (spousal job and house issues). so, ER proposes to make an exception for this potential EE whereby he can get $7K (notice, it's $7K; not $8K as specified under the SPD) to be used at his discretion over a 5-year period.

1) can a side letter accomplish the ER's goal of, what is in effect a modification of the fringe benefit plan, changing the relocation policy just for this one EE;

2) what about the constructive receipt of the $7K?

it would be much simpler if the EE knew he would be using the $7K relocation reimbursement provision w/in this or next year, but to have a 5-year window in which to exercise the right?

thanks for any help you can provide.

[Jacmo]

Lexi, I don't think this has anything to do with a 125 plan, does it?