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Plan Design Features To Increase Participation In Nonqualified Deferred Compensation Plans

Successful rates of participation in NQDC plans rely on careful plan design. Learn how to improve participation by 20%, 30%, or more with these changes.



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Key Points in This Article
Five key elements of plan design are associated with high rates of participation in nonqualified deferred compensation (NQDC) plans.
Important design features include deferral limits, source of compensation that can be deferred, distribution options, and roll-out options.
Also crucial to consider are investment selection and advice, funding and security, and post-termination distribution provisions, along with strong communications and education.