Non-qualified deferred compensation plans are increasingly being used by employers as retention tools by including noncompete or “bad actor” forfeiture clauses, according to research released Wednesday by the Plan Sponsor Council of America.

Of 135 companies offering NQDC plans to employees, 30% said they had noncompete clauses in the 2022 report, up from just 11.5% in 2021, according to data provided to PLANADVISER. In addition, 40% of employers said they have a “bad actor” forfeiture provision in 2022’s report, up from 23.7% in 2021. READ MORE