The Supplemental Benefits Plan for Employees of the Company (SBP) is a non-qualified deferred compensation plan as defined in section 409A of the Internal Revenue Code of 1986, as amended.
The IRS puts restrictions on the amount of total contributions allowed in your 401K account (known as the 415 Limit) and how much eligible compensation may be factored into calculating your contributions (known as the Comp Limit). Total contributions include employee pretax and after-tax contributions and company matching contributions. The 415 Limit for 2011 is $49,000 and the Comp Limit for 2011 is $245,000.
The SBP was created to allow you to continue saving for retirement without regard to these limits. SBP contributions are not made throughout the entire year. They only begin after your contributions in the 401K stop due to either the 415 Limit or the Comp Limit. In other words, the 401K is your Savings Plan for contributions below the 415 Limit or Comp Limit and the SBP is your Savings Plan for contributions above the 415 Limit or Comp Limit.
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