Question

Which of the following is true concerning employer funding of nonqualified deferred compensation plans? Multiple Choice Employers are required to invest salary deferred by employees in investments specified by the employees. Employers are required to annually fund their deferred compensation obligations to employees. Employers annually deduct the amount earned by employees under the plan. Employers may discriminate in terms of who they allow to participate in the plan.

Answer 1

Answer:

Employers may discriminate in terms of who they allow to participate in the plan.      

Explanation:

A deferred unqualified payment agreement is a contractual arrangement between a very employer as well as a worker in which the employer intends to compensate the worker at a future date.

The provider expressly gives an unprotected commitment to provide future compensation to a worker, according to the clear conditions of the agreement.

However, such funding is not mandatory by the government and also their is a high direction for the employer in choosing the conditions, thus, their is high Chance of discrimination by employer also.