• Top-hat plans are generally not subject to the broad remedial provisions of ERISA because Congress recognized that certain individuals, by virtue of position or compensation level, can substantially influence the design or operation of their deferred-compensation plans. — Often shortened to top-hat plan. [Cases: Pensions 24.1, 28. C.J.S. Pensions and Retirement Plans and Benefits §§ 11–15.]
top hat pension plan
An unfunded pension plan that is maintained by an employer primarily for the purpose of providing deferred compensation for a select group of managers or highly paid employees.
