HR Administration

More About Nonqualified Plans

By Lisa Beyer

Oct. 11, 2011

The four major types of nonqualified plans, according to Investopedia.com, are:

  • Deferred compensation plans
  • Executive bonus plans
  • Group carve-out plans
  • Split-dollar life-insurance plans

Nonqualified deferred compensation plans are not funded by the employer and therefore, participants are considered general creditors of the company. This lack of a guarantee that the deferred compensation plan will be paid is one of the biggest drawbacks of these plans, according to Fidelity’s LifeDesign Financial Answer Center.

Lisa Beyer is a writer based in Florida.

Schedule, engage, and pay your staff in one system with Workforce.com.

Recommended

Join over 52,000 of your HR peers

Don't miss out on the latest tactics and insights at the forefront of HR.