In Notice 2007-62, the Internal Revenue Service (IRS) announced its intent to issue new guidance under Internal Revenue Code (IRC) Section 457(f) plans. These plans constitute nonqualified deferred compensation plans maintained by tax-exempt organizations and by state and local governments. Notice 2007-62 reports that the upcoming guidance will focus on two principal components of IRC Section 457(f): (i) the exemption from IRC Section 457(f) for bona fide severance pay plans (under IRC Section 457(e)(11)); and (ii) the definition of “substantial risk of forfeiture” (under IRC Section 457(f)(3)(B)). These issues are central to the design of many executive compensation programs in the tax-exempt employer realm. Notice 2007-62 reports that the new guidance on these issues will be patterned after similar guidance in the final IRC Section 409A regulations that were issued in April 2007.