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Release Required Independent of Payment Schedule
BenefitsLink Message BoardsLink to more items from this source
June 2, 2021

"A nonqualified deferred compensation plan provides for payment of benefits in annual installments each March. Termination of employment generally results in a forfeiture of further payments. However, under certain conditions, such as termination by company other than for cause, payments are to continue when otherwise due under the plan, but conditioned upon the participant signing a release of claims (no deadline specified). Where the release is not a payment trigger (rather, failure to sign a release apparently results in a forfeiture), is it necessary to set a deadline for the release to be returned/and for the revocation period to expire?"

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