Non-Qualified Deferred Compensation Plan | Bank of America Merrill Lynch

Nonqualified Deferred Compensation

You want to go the extra mile for your highest paid executives and key employees. A Nonqualified Deferred Compensation plan arrangement can give these key contributors the ability to defer receiving a certain amount of compensation until a point in the future, with potential benefits.

Your key employees are likely to have financial plans for the future that would typically center on long-term objectives such as:

  • Supplemental retirement savings
  • Life events, such as college tuition
  • Purchase of a vacation home
  • Second Acts or charitable giving

For plan sponsors:

Bank of America Merrill Lynch can help you navigate the requirements necessary to make this benefit effective for your company and your key employees, regardless of your plan size. Key advantages include:

  • A single point of contact for all plans served by Bank of America Merrill Lynch
  • Payroll coordination
  • Tracking and reporting of beneficiary information and vesting schedules
  • Monthly asset and liability reporting to facilitate accounting and financial reporting
  • Class year accounting
  • Distribution calculations
  • Access to consulting, investments, investment management and recordkeeping services
  • Financing and cash flow review
  • Rabbi Trust services to provide an extra measure of assurance for participating executives.

For key employees:

With our powerful integrated benefits capabilities, key employees can take active control of their nonqualified deferred compensation plan benefits, with a more holistic view of other plans and resources. Advantages include:

  • Integrated views of other retirement and equity plans serviced by Bank of America Merrill Lynch
  • Web-based enrollment and distribution management
  • Unified views of in-service and retirement accounts, and investments.

A team of registered representatives in our Retirement & Benefits Contact Center is trained and able to answer participant questions about non-qualified deferred compensation plans, and help them make informed choices regarding enrollment, contributions, distribution elections, and how decisions affect their deferrals.

Merrill Lynch Retirement Benefit Consultants are also available to assist executives in understanding and using the plan, distribution elections and other complex decisions.

This is a nonqualified deferred compensation plan under the rules and regulations of the Internal Revenue Service and is exempt from most of the rules and regulations under ERISA. The Plan is unfunded and unsecured. The balance(s) in your account represents a promise to pay non-qualified benefits at a future date. Your investment choices are "deemed" as investments for the purposes of calculating your account value in the Plan. However, you are not actually invested in the underlying investment vehicles. This means the Plan is backed by the general assets of the company and any funds that may be set aside to pay benefits are subject to claims by the company's creditors. Participants have no rights to any assets other than as a general unsecured creditor.

Neither Bank of America, N.A., MLPF&S, nor any of their affiliates or employees provide legal, tax or accounting advice. You should consult your legal and/or tax advisors before making any financial decisions.

See how Retirement & Benefit Plan Services can expand the possibilities of your employee benefit solutions.
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