Definition of Compensation: A Common Risk for Not-for-Profit Employee Benefit Plan Sponsors
For many plan sponsors, the definition of compensation seems straightforward. If everyone is paid a salary, determining compensation can be simple. However, in practice, compensation is one of the most critical and complex elements of plan administration. It is the foundation for participant deferrals, employer matching contributions, nonelective and profit-sharing contributions, forfeiture allocations and a…


