In simple terms, a 457(f) plan is a promise made by the Credit Union to the Executive. Some common highlights of this plan are:
- A Legal Document is prepared that outlines all of the details agreed upon between the Board and the Executive.
- Defined Benefit - define fixed dollar amount or a percentage of salary
- Defined Contribution - benefit indexed to an investment or other type of formula
- Benefits taxed based on substantial risk of forfeiture.