Report your spouse’s deferred compensation in Part 5.

Deferred compensation can take many forms, and the reporting requirements will vary based on the timing of the compensation and its form.  The examples below are intended to be merely illustrative of the various forms that deferred compensation may take.  Regardless of the form of your spouse’s deferred compensation, you should work with an ethics official at your agency to ensure complete and accurate disclosure.

The guidance on deferred compensation is broken into the following sections:

Example 1: Cash Payments from a Deferred Compensation Plan 

Example 2: Future Cash Payment That is Fixed

Example 3: Payments in the Form of Assets – Received or Anticipated

Example 4: Deferred Compensation Plan with Underlying Assets

Example 5: Deferred Compensation Plan Linked to an Index or Other Benchmark

Example 1: Cash Payments from a Deferred Compensation Plan 

If your spouse has received cash payments from deferred compensation, report as follows.

Part 5

Report the source of a cash payment (or payments) that your spouse received during the reporting period if the total amount derived from deferred, earned income exceeded $1,000.  In addition, report the amount of any payment (or payments) derived from investment income in excess of $200.

Description:  Report the name of the employer providing the payment and write “deferred compensation.”  In addition, for a privately held business, describe the line of business, unless you have already provided this information in another entry.

EIF:  Select “N/A.”

Income Type:  Describe the type of income as “cash payment” or “cash payments.”

Income Amount:  Provide the exact amount of any payment during the reporting period that was derived from investment income (i.e., income that accrued within the plan in addition to the originally deferred earned income).

Example 2: Future Lump Sum Cash Payment That is Fixed

Your spouse’s employer may owe your spouse deferred compensation in the future in the form of a cash payment.  That payment may be a fixed, as opposed to variable, amount that has already been determined.  In that case, this example provides guidance on reporting the fixed-amount cash payment that your spouse’s employer owes.

Instead of being fixed, the amount of your spouse’s future payment may depend on the performance of investments.  Alternatively, it may depend on the performance of something tracked, such as an index, a mutual fund, or some other benchmark.  In either of those cases, this example would not apply to your spouse’s situation.  You should refer to either Example 4 or 5 below for guidance on a “Deferred Compensation Plan with Underlying Assets” or a “Deferred Compensation Plan Linked to an Index or Other Benchmark.”

Part 5

Report an anticipated, fixed cash payment if the fixed amount that your spouse is owed was more than $1,000 at the end of the reporting period.

Description:  Report the name of the employer providing the payment and write “deferred compensation: cash receivable.”  In addition, for a privately held business, describe the line of business, unless you have already provided this information in another entry.

EIF:  Select “N/A.”

Value:  Select the category that corresponds to the value of the fixed payment that your spouse is owed.

Income Amount:  Select the category for “None (or less than $201).”  OGE does not treat tax-deferred compensation owed to your spouse or tax-deferred income accruing within a deferred compensation plan as having been received because of the limitations on withdrawal and other regulatory requirements governing such plans.  You, however, would report distributions as having been received.  See Example 1 above.

Example 3: Payments in the Form of Assets – Received or Anticipated

Your spouse may have an arrangement for deferred compensation in the form of assets, rather than cash.  If your spouse has not yet received the deferred compensation, provide the name of the employer and write “deferred compensation receivable” in the “Description” field.  Then, report the assets using the guidance appropriate for that type of asset (e.g., stock, stock options, restricted stock, stock appreciation right, phantom stock, and restricted stock units).

Note that OGE does not treat tax-deferred compensation owed to your spouse or tax-deferred income accruing within a deferred compensation plan as having been received because of the limitations on withdrawal and other regulatory requirements governing such plans.  You, however, would report distributions as having been received.  See Example 1 above.

Example 4: Deferred Compensation Plan with Underlying Assets

This example addresses the situation of a deferred compensation plan that holds underlying assets.

Part 5

Report the deferred compensation plan and each underlying asset of the plan that individually was worth more than $1,000 at the end of the reporting period.

Description:  Provide the name of the employer and write “deferred compensation.”  In addition, for a privately held business, describe the line of business, unless you have already provided this information in another entry.

Next, report each underlying asset that individually was worth more than $1,000 at the end of the reporting period.

EIF:  Select “No” for the plan.  In addition, for each underlying asset, indicate whether the asset (1) is an investment vehicle qualifies as an EIF (“Yes”), (2) is an investment vehicle that does not qualify as an EIF (“No”), or (3) is not an investment vehicle that holds other assets (“N/A”).

Value:  You do not need to provide the overall value for the plan.  Instead, provide the individual value of each underlying asset by selecting the appropriate category.

Income Amount:  Select “None (or less than $201)” for the underlying assets.  OGE does not treat tax-deferred compensation owed to your spouse or tax-deferred income accruing within a deferred compensation plan as having been received because of the limitations on withdrawal and other regulatory requirements governing such plans.  You, however, would report distributions as having been received.  See Example 1 above. 

Example 5: Deferred Compensation Plan Linked to an Index or Other Benchmark

Your spouse may have an interest in a deferred compensation plan under which your spouse’s employer owes a future payment that depends on the performance of something tracked, such as an index, a mutual fund, or some other benchmark.  However, your spouse does not, through the deferred compensation plan, own the thing being tracked.  For instance, the plan may track the performance of the S&P 500 or the performance of a mutual fund that mirrors the S&P 500, but your spouse does not hold, through the deferred compensation plan, shares of the companies listed on the S&P 500 or shares of the mutual fund.  Instead, the employer owes your spouse a cash payment, and the employer may pay more money if the S&P 500 performs well or may pay less money if the S&P 500 performs poorly.

This example provides guidance on reporting the variable payment of deferred compensation that an employer owes your spouse.

Part 5

Report your spouse’s interest in the plan if the value of your spouse’s interest was more than $1,000 at the end of the reporting period.

Description:  Provide the name of the employer, write “deferred compensation,” and specify the index or other benchmark that your spouse’s future payment tracks.  In addition, for a privately held business, describe the line of business, unless you have already provided this information in another entry.

EIF:  Select “N/A.”

Value:  Select the category that corresponds to the value of your spouse’s interest.

Income Amount:  Select the category for “None (or less than $201).”  OGE does not treat tax-deferred compensation owed to your spouse or tax-deferred income accruing within a deferred compensation plan as having been received because of the limitations on withdrawal and other regulatory requirements governing such plans.  You, however, would report distributions as having been received.  See Example 1 above.