Legal Dictionary of Pakistan

money purchase plan

An employee benefit plan that provides a benefit based on the total amount of employer contributions in a participant's account. ( A money-purchase plan can be a qualified plan if the contributions are fixed and not geared to profits. nonqualified deferred-compensation plan A compensation arrangement (such as providing stock options), frequently offered to executives, that defers the recognition of taxable income to a later date."Generally, a nonqualified deferred compensation plan is an agreement or promise by an employer to certain individuals to pay compensation to those individuals at some future date. A nonqualified plan may also be a series of deferred compensation agreemen