Deadline Looms for Section 409A Relief

p>This year employers have been focused on health care reform. The major health care reform issues include grandfathered plan status, enrollment of adult children, and the elimination of annual and lifetime limits.

Now that your group health plan's open enrollment materials for 2011 are finalized, you have a moment to refocus on your nonqualified deferred compensation arrangements. These arrangements include:

• Traditional top-hat deferred compensation plans
• Supplemental executive retirement plans (SERPs)
• Supplemental savings plans
• Certain equity awards
• Severance plans
• Certain employment and severance agreements
• Change in control agreements and plans

On January 5, 2010, the Internal Revenue Service issued Notice 2010-6, which provides methods that employers can use to voluntarily correct plan document failures under Section 409A of the Internal Revenue Code of 1986, as amended ("Section 409A"). Although the notice provides long-term relief,