NQDC Plan - recommended disclosures? (web/statements)

[JA]

I am curious as to any common or recommended disclosures that may be used with deferred compensation plans for participant quarterly statements or on web pages.  

I understand there are no "required" disclosures, but I recommend something that references that the investment shown are not an indication of ownership.

Any thoughts on this?  any suggested statements that you would use on statements or online? 

[ERISA-Bubs]

Probably not a bad idea to reiterate the unfunded nature of the benefit and the fact that the employee doesn't own any money or investments in the plan, nor does the employer even have to actually make any elected investments.

[QDROphile]

You do not report what kind of plan it is and you have narrowed the question concerning the nature and timing of the disclosure. I do not have any particular focus for the suggestion that it is always a good idea for someone knowledgeable to keep an eye on federal and state securities law compliance. It sneaks up on you. 

[Luke Bailey]

If the NQDC plan is an ERISA pension plan (e.g., defers to the end of employment, at least mostly), then ERISA preempts state law, but has no rules. Employer is not a fiduciary. So what you are trying to do with communications is (a) be helpful to participants by letting them know what they are getting by participating and/or (b) prepare your defense in the event of litigation. Tell the participants how their benefit/account amount is determined, when they can be paid, the risk in the event of insolvency, and that the plan only covers a top-hat group and what that is. Also, the fact that distributions will be subject to ordinary income tax with no rollover ability, how/when FICA applies, any vesting rules, access to funds (or not) for financial emergencies.