HR Terminology Deferred Compensation

Complygate has put together a complete list of key HR terms, phrases, acronyms and jargon to assist HR professionals in navigating the extensive, ever-growing HR terminology. We would like to encourage you to read, share and make use of this terminology collection. If you have any suggestions of terms or keywords we have missed, please contact us and we will include them in our next update.

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What is Deferred Compensation?


  • Deferred compensation is a certain amount of compensation from an employee that is put to one side to be paid at a later date.
  • The different types of deferred compensation contain pension plans, stock option plans and retirement plans.
  • A deferred compensation plan is a way for employers to motivate their key employees and hold onto them.
  • Deferred compensation can also be qualified or non-qualified. These are the two types of deferred compensation.
  • Qualified deferred compensation plans are governed by planned pension plans. If an organisation has this put into the position they must offer it to all their employees.
  • Non - qualified deferred compensation plans are a way for employers to attract and motivate key employees in a workplace to stay.
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