How Do Points Work?
We’ll start by explaining where the points system for the PGA Deferred Compensation Plan originated. The system was developed internally, with help from outside counsel, then submitted to the IRS for review. After reviewing required changes, a revised document was circulated among a group that included representatives from all three career paths of coaching, management and executive operations along with Section Executive Directors.
Next, the basics: a minimum of 200 points is required in a given plan year to be eligible for contributions.
If a Member does not attain the minimum number of points, those points are forfeited at the conclusion of the plan year. Additionally, points cannot be rolled over into a subsequent year.
How do I report points for Deferred Compensation?
The all-new Member app has everything you need to manage your activities throughout the plan year. From submitting activities, assigning Members to review, and tracking points accumulation and more, the app is a one-stop shop for Deferred Compensation.
To report points and submit an activity for review, Members can use either an online portal through PGA.org or the PGA Member app. Within the app and online portal is a multi-pronged attestation model, including self-attestation, attestation of another Member, and the use of other readily-available data sources.
Click here for a list of eligible activities and their corresponding point values.
How do you verify activity participation?
For each activity, the Member submitting the activity will need to attest to having participated. Additionally, the participating Member must have another Member attest to their participation in such activity. Upon request, a member may need to provide additional proof of a completed activity.
How do points translate into dollars contributed to my account?
An eligible Member participating in Deferred Compensation may receive, in plan year 2023, a maximum contribution of $1,500 (with a plan in place to increase at a rate of 3% per year).
The actual dollar amount received depends on points earned, total participation and overall contribution by the PGA as determined for that plan year. Calculations are made at the end of the plan year to take the total fund contribution by the PGA and divide it by the number of points earned, minus those points that were forfeited (due to less than the minimum threshold being achieved or someone earning the equivalent of over the max threshold of $1,500).
Note: The $1,500 maximum was the highest annual amount approved by the IRS that could be distributed to each Member through the PGA’s Deferred Compensation Plan. This decision on a yearly maximum contribution was not made by the PGA of America. Given the IRS ruling, the PGA of America decided to maximize the yearly contribution and allow Members to receive up to $1,500 during a given plan year.
In addition to the Help & Resources library (available via the app and PGA.org), Members can contact support at deferredcompensation@pgahq.com for additional assistance.