Oct 4, 2004

Nonqualified Deferred Compensation (“NQDC”)
Description of Johnson Amendment

The amendment makes technical changes to the proposed legislation on NQDC. The amendments are consistent with eliminating abusive arrangements and provide bright-line rules on a going forward basis for NQDC. These modifications are needed to ensure that employers can satisfy the new rules on a timely basis; that participants in non-abusive arrangements are not improperly penalized; and that employers may continue to offer appropriate NQDC and equity arrangements that will assist employees in saving for their retirement and satisfy retention goals.


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Johnson Amendment

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