Phantom stock plan erisa
1 Aug 2014 Deferred compensation plan deferring both bonuses and other income is an employer's phantom stock plan did not trigger ERISA coverage 30 Jun 2011 Like the phantom stock plan, this DCA pays a deferred cash benefit based be HCE plans in order to avoid troublesome ERISA requirements. to ensure compliance with Employee Retirement Income Security Act (ERISA) non-statutory stock option plans, restrictive stock programs, phantom stock employee stock purchase plans ("ESPPs"), phantom stock plans, retention Our lawyers are able to discuss and explain highly technical ERISA and tax law Types of Stock Awards. Equity-based compensation plans come in a variety of forms. All can be categorized as either actual stock or phantom stock. Programs 9 Mar 2017 Such plans may be subject to the Employee Retirement and Income Security Act of 1974 (ERISA) if they include sufficient income deferral
30 Jun 2011 Phantom stock provides a bonus based on the value of a stated number of shares of company stock. Like SARs, phantom stock is typically subject
Under what conditions might a phantom stock plan be considered a bonus plan instead of a nonqualified deferred compensation plan? The Department of Labor (“DOL”) establishes the regulations which define whether or not a program is a pension (and thereby subject to ERISA). Most phantom stock plans will be subject to ERISA (the Fed’s 1974 rules on pensions) and Internal Revenue Code Section 409A. Commonly, phantom stock plans fall into the category of “nonqualified deferred compensation” programs. This term reflects a type of retirement plan referred to in the Employee Retirement Income Security Act of 1974 (ERISA). Phantom stock is not a good idea if the company is planning on issuing them to most or all employees, especially if the shares will be paid out when the employee leaves the company or retires. In that case, phantom shares may be ruled illegal because of the Employee Retirement Income and Security Act (ERISA). ERISA (the Employee Retirement Income and Security Act of 1974) is the federal law that governs retirement plans. Our book Equity Alternatives: Restricted Stock, Performance Awards, Phantom Stock, SARs, and More includes a detailed chapter on phantom stock and SARs, plus model plan documents.
Most phantom stock plans will be subject to ERISA (the Fed’s 1974 rules on pensions) and Internal Revenue Code Section 409A.
“ERISA” means the Employee Retirement Income Security Act of 1974, “Plan” means the Old Dominion Freight Line, Inc. 2012 Phantom Stock Plan, as it may The Plan is intended to qualify as a “top-hat” plan under ERISA, in that it is such participant is granted Phantom Stock in accordance with the terms of the Plan. easily be associated with phantom stock and. 401(k) plans. As the benefits offered to employees become increasingly diverse, companies are looking for
ERISA (the Employee Retirement Income and Security Act of 1974) is the federal law that governs retirement plans. Our book Equity Alternatives: Restricted Stock, Performance Awards, Phantom Stock, SARs, and More includes a detailed chapter on phantom stock and SARs, plus model plan documents.
Phantom Stock and SARs are both non-qualified deferred compensation plans that pay a cash amount to participants based on the appraised value of the company if there is a triggering event, most often a sale of the business. These plans are traditionally, and most effectively, Compliance with Employee Retirement Income Security Act of 1974 (ERISA) – Phantom stock plans are generally designed as “top hat” plans which are unfunded and maintained by the company for a select group of management or highly compensated employees. Any shares of Phantom Stock subject to an Award which, for any reason, expires, is cancelled, is forfeited or is otherwise terminated without settlement as to such shares of Phantom Stock may again be subject to an Award granted under the Plan. No shares of Common Stock shall be issued pursuant to the Plan and payments made under the Plan, if at all, shall be made solely in cash. Most phantom stock plans are designed to either: Satisfy the requirements of a “top hat plan” which is subject to ERISA but exempt from many of ERISA’s burdensome requirements. Avoid ERISA coverage by limiting deferral opportunities. All phantom stock plans should be drafted to comply with, or be exempt from, Section 409A’s requirements. Learn more from the experts at Practical Law.
10 Nov 2017 Learn what a Phantom Stock plan is & how you can leverage it in your which employees participate as under ERISA and qualified plans.
30 Jun 2011 Phantom stock provides a bonus based on the value of a stated number of shares of company stock. Like SARs, phantom stock is typically subject 26 Sep 2016 A phantom stock plan is one way for family-owned businesses to Security Act ( ERISA) and Section 409A of the Internal Revenue Code, 9 Oct 2015 benefit plans, phantom stock, nonqualified options, sale-of-company oversight if the arrangement is considered an ERISA plan (see below). 26 Sep 2016 A phantom stock plan is one way for family-owned businesses to Security Act ( ERISA) and Section 409A of the Internal Revenue Code,
1 Aug 2014 Deferred compensation plan deferring both bonuses and other income is an employer's phantom stock plan did not trigger ERISA coverage 30 Jun 2011 Like the phantom stock plan, this DCA pays a deferred cash benefit based be HCE plans in order to avoid troublesome ERISA requirements. to ensure compliance with Employee Retirement Income Security Act (ERISA) non-statutory stock option plans, restrictive stock programs, phantom stock