applicable employment retention plan

(4) Employment retention plans For purposes of paragraph (2)(F)— (A) In general The portion of an applicable employment retention plan described in this paragraph with respect to any participant is that portion of the plan which provides benefits payable to the participant not in excess of twice the applicable dollar limit determined under subsection (e)(15). (B) Other rules (i) Limitation Paragraph (2)(F) shall only apply to the portion of the plan described in subparagraph (A) for years preceding the year in which such portion is paid or otherwise made available to the participant. (ii) Treatment A plan shall not be treated for purposes of this title as providing for the deferral of compensation for any year with respect to the portion of the plan described in subparagraph (A). (C) Applicable employment retention plan The term “applicable employment retention plan” means an employment retention plan maintained by— (i) a local educational agency (as defined in section 8101 of the Elementary and Secondary Education Act of 1965 ( 20 U.S.C. 7801 )), or (ii) an education association which principally represents employees of 1 or more agencies described in clause (i) and which is described in section 501(c)(5) or (6) and exempt from taxation under section 501(a). (D) Employment retention plan The term “employment retention plan” means a plan to pay, upon termination of employment, compensation to an employee of a local educational agency or education association described in subparagraph (C) for purposes of— (i) retaining the services of the employee, or (ii) rewarding such employee for the employee’s service with 1 or more such agencies or associations.

Source

26 USC § 457(f)(4)


Scoping language

in this paragraph
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