Unfunded Plan
With unfunded deferred compensation plans, the employer may purchase insurance to help satisfy its obligations under the plan, but the nonqualified deferred compensation plan should not tie the amount of benefits directly to the amounts payable under the life insurance policy. Note that the employee should have only the rights of an unsecured general creditor.
Read more about this topic: Nonqualified Deferred Compensation
Famous quotes containing the word plan:
“People commonly educate their children as they build their houses, according to some plan they think beautiful, without considering whether it is suited to the purposes for which they are designed.”
—Mary Wortley, Lady Montagu (1689–1762)