<nobr>Apr 27, 2004</nobr>

Proposed Amendments to FSC/ETI Bill (NQDC Provisions)

During last week's meeting of the Retirement Security Committee, ERIC members proposed certain changes to the non-qualified deferred compensation (NQDC) provisions of S.1637, the Senate version of the FSC/ETI bill.

Attached please find proposed amendments to the pertinent provisions in the bill. The changes are shown in blackline format as compared to the current version of S.1637. The amendments will: 1.) limit the gross income inclusion for failure to adhere to the new provisions only to those participants in the plan who are affected by the failure, and 2.) expand the investment options allowable under NQDC plans to those comparable to the options available in the qualified defined contribution plan available to the greatest number of employees. This change also provides for a transition rule.

We need to know if these proposed amendments are suitable to your company's needs. As the bill is expected to reach the floor of the Senate during the week of May 3, we would appreciate receiving your comments as quickly as possible.

Please email your comments to Vanessa Scott, Legislative Counsel, at vscott@eric.org.

Vanessa A. Scott
Legislative Counsel
vscott@eric.org

Websites:

ERIC Proposed Amendment to S.1637

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