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Permissible Haircut under Terminating Plan?

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An employer sponsors a nonqualified deferred compensation plan, which it would like to terminate before year-end and begin paying out beginning after 12 months and ending within 24 months in accordance with the plan termination rules.  Individual agreements with each of the 3 participants provide for a specified dollar amount to be paid to the participant every year for 10 years beginning when the participant attains age 62.  The specified dollar amount will be reduced by 5% in connection with the termination, a reduction all participants are agreeable to, and will sign releases concerning.  Is this an exception to the otherwise applicable prohibition against applying a "haircut" to accelerate payment?  Also, can the timing of payouts over the 12 - 24 month post-termination period vary among the 3 participants (e.g., participant 1 gets a lump sum distribution on 12/31/2022, participant 2 gets a lump sum distribution November 30, 2023 and participant 3 gets a partial distribution on 12/31/2022 and the balance paid on November 30, 2023)?

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