Deferred Compensation – Voluntary Clause Samples
The Deferred Compensation – Voluntary clause allows employees to choose to postpone a portion of their earned income to be paid out at a later date, typically after retirement or upon meeting certain conditions. Under this arrangement, employees elect in advance how much of their salary or bonuses they wish to defer, and the employer holds these funds, often investing them until distribution. This clause primarily helps employees manage their tax liabilities and plan for long-term financial security, while also providing employers with a tool to attract and retain talent.
Deferred Compensation – Voluntary. The County agrees to maintain the current deferred compensation plan for bargaining unit members eligible under Federal law and the rules of the deferred compensation plan. Nothing herein renders County liable to the Union or any employee for a discontinuance of Internal Revenue Service or Franchise Tax Board approval of any County deferred compensation plan or portion thereof. The County and the Union agree to meet upon request of either party during the term of this Memorandum to consider the development of additional mutually agreeable deferred compensation investment options.