On April 10, 2007, the Treasury Department and the Internal Revenue Service released final regulations on the treatment of nonqualified deferred compensation arrangements under Section 409A of the Internal Revenue Code. Section 409A, which was enacted as part of the American Jobs Creation Act of 2004, imposes a variety of rules and requirements on traditional nonqualified deferred compensation arrangements and supplemental retirement plans, cash-based long-term incentive plans, equity compensation plans and separation pay plans. These rules relate to the timing of deferral elections, distribution requirements and changes to distribution elections. Plans must be amended for compliance with the final regulations by December 31, 2007. Compensation, benefits and human resource professionals need to understand the potential impact of Code Section 409A on their companies’ existing and proposed compensation plans.

This session provides an in-depth discussion on what the final rules say and what they mean. We will provide hands-on advice on what you need to do to ensure that your plans are in compliance. Most importantly, these arrangements are part of a competitive total compensation program. We will outline specific steps that you can use in your organization to make sure that your plans do not lose their effectiveness in the effort to make them compliant.

Source: Chicago Compensation Association’s (CCA) Special Briefing