GC New York
The American Jobs Creation Act of 2004 makes significant changes to rules relating to deferred compensation arrangements, effective January 1, 2005. Littler's Steve Friedman advises on the certain plans an pay practices that are not subject to the act, such as annual bonuses, and when participant elections to defer compensation must be made. Friedman notes the special rules for 2005 deferrals, from the distinction of performance-based compensations to the restrictions on distributions. Friedman advises employers to identify arrangements subject to the Act, examine plan provisions to determine what changes need to be made, and to inform employees who participate in deferred compensation plans about any changes that will impact them.