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Cautionary Observations on the Proposed 457 Regulations
Benefits Bryan Cave Link to more items from this source
[Guidance Overview]
July 14, 2016

"Practitioners in the for-profit arena currently believe they enjoy wide latitude in restructuring severance arrangements that are exempt from 409A. It would not appear that practitioners will have that same latitude for severance arrangements that are exempt from 457 ... The regulations restrict, but do not eliminate this flexibility by establishing requirements that must be satisfied for non-competes and rolling risks of forfeitures to create a substantial risk of forfeiture.... Finally, the proposed 457 regulations raise the possibility that many leave programs, especially those maintained by governmental entities, could be suspect as deferred compensation arrangements."

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