There are several different types of non-qualified defined contribution plans, so employers can choose the one that best fits their needs.
Deferral Plans–These are funded with employee dollars.
Executive Bonus PlansThese plans are funded with bonuses paid to the employee.
GEBA–This is a “golden executive bonus arrangement.” Basically, this is an executive bonus plan that includes employer contributions and vesting requirements.
Supplemental Executive Retirement Plan–An employer-paid plan offering either a defined benefit or target benefit approach.
Reproduced from National Underwriter Edition, June 23, 2003. Copyright 2003 by The National Underwriter Company in the serial publication. All rights reserved. Copyright in this article as an independent work may be held by the author.