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The Pension Protection Act of 2006 Prohibits Funding of Non-Qualified Deferred Compensation Benefits for Senior Executives of Companies with Underfunded Defined Benefit Plans by Steven B. Lapidus
Mindy B. Leathe
Greenberg Traurig, P.A.
Miami Office
Thomas G. LaWer
Greenberg Traurig, P.A.
East Palo Alto Office
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September 10, 2007
Previously published on October 2006
The Pension Protection Act of 2006 (the "Act") contains a very
significant new rule that will prohibit employers with under-funded
defined benefit pension plans from making contributions to Rabbi
Trusts or other funding vehicles to fund future benefits of senior
executives under a non-qualified deferred compensation plan.
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The views expressed in this article are solely the views of the author and not Martindale-Hubbell. This article is intended for informational purposes only and is not legal advice or a substitute for consultation with a licensed legal professional in a particular case or circumstance. |
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