So, do we actually have to sign the agreement to keep our deferred comp? I have the potential to take another gig immediately and it might disappear if I have to wait.
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It is my understanding that if you start a new FTjob before your separation date, then you are technically resigning from BNY . You can start a new full time job once your separation date is past and you still receive your separation pay.
The bank has many different comp plans. The deferred comp plans can be a portion of your cash bonus and/or salary that you can elect to defer to avoid current year taxes, create a distribution plan up to 10 years post retirement and effectively create a post retirement annuity at a lower tax rate. Leaving before a certain age can trigger a full distribution and result in a large tax event.
The bank also has RSUs, which have strict vesting rules.
As stated, read the agreements detailing the rules under these very different plans.
RSUs are a method of employee retention. The more deferred compensation you have, the less likely you are to leave. Payout of deferred compensation has its own set of rules, which if unmet will cause you to forfeit the payout. The way deferred compensation payout is guaranteed is if you are let go and are presented with an explicit separation agreement. Even if you meet the age requirement, you must meet all the terms of your employment to receive payout, including any notice period required by title/level. Please read the grant documents thoroughly.
RSUs follow different rules.
Deferred comp is yours. It is never at risk. If you are under 55 it is paid in lump sum rather than over your selected payment schedule. Can have serious tax consequences.
Not sure what the correlation is. Isn’t the agreement for the deferred comp already out there? Why can’t you sign to accept and then accept the new job at the same time