Nonqualified Deferred Compensation Plan Design Insights

This document is a report based on the 2025 Nonqualified Deferred Compensation Survey conducted by the Plan Sponsor Council of America, sponsored by Empower. It examines how employers are approaching nonqualified plan design, funding, and administration, reflecting on the evolving workforce priorities and financial strategies. The survey had over 300 respondents, primarily from organizations with more than 200 employees, and reveals that satisfaction with nonqualified plan design is high, with many sponsors opting for refinement rather than major redesigns. Key insights include the predominance of role-based eligibility criteria, the commonality of employer contributions, and a preference for operational simplicity in administration. The report details how funding strategies vary based on financial objectives, emphasizing the importance of disciplined funding and seamless plan administration. The findings underscore a trend towards thoughtful structure in plan design aligned with broader organizational goals for talent retention.