Common use of Deferral Plan Clause in Contracts

Deferral Plan. The deferral portion of the plan shall involve an employee spreading four (4) years’ salary over a five (5) year period, or three (3) years’ salary over a four (4) year period. In the case of the four (4) years’ salary over a five (5) year schedule during the four (4) years of salary deferral, 20% of the employee's gross annual earnings will be deducted and held for the employee, or during the three (3) years of salary deferral, 25% of the employee’s gross annual earnings will be deducted and held for the employee. Such deferral salary will not be accessible to the employee until the year of the leave or upon the collapse of the plan. In the case of another mutually agreed upon deferral schedule, the percentage of salary deferred shall be adjusted appropriately.