Restrictions on Deferred Compensation Plans on the Horizon

It now appears likely that Congress will pass legislation this year restricting the use of nonqualified retirement plans (including supplemental executive retirement plans (SERPs), excess benefit plans, deferred compensation plans and rabbi trusts) by corporate executives. On May 11, the Senate passed a bill that includes limitations on nonqualified plans that are very similar to the restrictions included in a bill scheduled to be approved next week by the House Ways and Means Committee.