QPA Blog Plan Compensation - Not So Simple!

Plan Compensation - Not So Simple!At face value, it seems like "compensation" would be one of the simplest issues to deal with in a retirement plan, but it is actually one of the most complex. Understanding what compensation is "plan eligible" is one of the biggest headaches for plan sponsors and an area in which plan sponsors often make mistakes. If you just think about all of the different forms of compensation you pay your employees (i.e. bonuses, commissions, fringe benefits, paid sick time, vacation time, automobile allowance, severance pay, group term life in excess of $50,000, etc.), it becomes clear why this is such a complex issue!