Deferred compensation plan

Deferred compensation plan is an employee pension program. A pension program that allows an employee to contribute a portion of income over time to be paid as a lump sum at retirement when the employee's income tax rate will probably be lower.

Definition

According to the HRBoK Guide,

Deferred compensation plan. An employee pension program. A pension program that allows an employee to contribute a portion of income over time to be paid as a lump sum at retirement when the employee's income tax rate will probably be lower.