In this article, we’re going to review the terms and conditions of the PGA’s Deferred Compensation Plan. As a reminder, all Members in good standing are eligible to participate in the plan, with the exception of those with Class F status. Members with Class F status are not eligible to earn points.
Members who work outside of the United States, or in U.S. territories Guam, Puerto Rico and the U.S. Virgin Islands are also not eligible.
It’s important to note that contributions to the plan are made only by the PGA of America, as there are no participant contributions. The PGA of America will contribute up to $1,500 per year and this amount may increase or decrease in any given year.
In order to qualify for plan contributions, Members must elect to participate and earn a minimum of 200 points during any given plan year by completing pre-approved activities found in the Points Matrix. Activities earn anywhere from 25 to 250 points.
Participants must track these qualified and complete and attestation of completed, qualified activities annually within sixty (60) days of the end of the plan year. Attestation must be completed by another PGA Member, and activities are assigned for approval within the Member app.
Plan assets are owned by the PGA of America until distributed and are subject to claims of the PGA of America’s general creditors in the event of the PGA of America’s insolvency. Plan distributions are restricted by both the Plan and the Code; the Plan allows distributions prior to April 1 the year following attainment of age 65 only in the event of an unforeseen emergency, as outlined in the Plan.
Other important items to note:
No funds will be withheld from plan distributions in order to pay income taxes.
Members are responsible for paying any taxes owed.
Distributions will be made in a lump sum (required for smaller accounts) or over a 10-year period, recalculated annually.
If the plan permits a Member to elect when and how funds will be distributed from this plan, specific requirements apply. Electing to defer distributions must be made no later than 60 days following termination of employment. The plan allows one additional election after that time, but only to defer (and not accelerate) a distribution date. Elections to determine form of payment must be made at least 30 days before payments are scheduled to begin.
If no elections are made, distributions commence at the time and/or in the form specified in the plan document.
Distributions from the PGA Deferred Compensation Plan are not eligible to be rolled over into other retirement plans or IRAs.
No rollovers, and no loans, are available or allowed in the PGA Deferred Compensation Plan.
For full details of the PGA Deferred Compensation Plan, refer to other articles in the “Help and Resources” section or visit PGA.org.