Deferred Compensation Plan In Retirement In Middlesex
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State:
Multi-State
County:
Middlesex
Control #:
US-00418BG
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Deferred compensation is an arrangement in which a portion of an employee's income is paid out at a date after which the income is actually earned. A Deferred Compensation Agreement is a contractual agreement in which an employee (or independent contractor) agrees to be paid in a future year for services rendered. Deferred compensation payments generally commence upon termination of employment (e.g., retirement) or death or disability before retirement. These agreements are often geared toward anticipated retirement in order to provide cash payments to the retiree and to defer taxation to a year when the recipient is in a lower bracket. Although the employer's contractual obligation to pay the deferred compensation is typically unsecured, the obligation still constitutes a contractual promise.
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A: No. Your participation in a deferred compensation plan does not affect your retirement allowance with Middlesex County Retirement System. Use these forms to manage your retirement plan.You will need your Social Security Number and PIN to enroll in the Plan online. Taking a refund of your total accumulated deductions terminates your rights in the retirement system and may subject you to tax consequences. Do not fill out more than one section.) Fill out Option I, Option II, or Option III. Please complete only one .