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Individual retirement compensation contract outside pension plan definition
Summary A company asked about an agreement with a departing employee who owned half its stock, providing additional retirement compensation for past services and specified consideration. DOL characterized the arrangement under the described circumstances as an individual personal-services contract, not an ERISA employee pension benefit plan.
Document
Federal opinion letter
Agency
U.S. Department of Labor, Employee Benefits Security Administration (EBSA)
Document number
P/OPINION 76-110
Date issued
September 28, 1976
Status
Unknown
EBSA's index does not mark withdrawn or superseded opinions; still posted on dol.gov as of 2026-10-26.
Status last verified October 26, 2026
Topics
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About this page: The full text below is the official document from U.S. Department of Labor, Employee Benefits Security Administration (EBSA). Ezel adds the plain-English summary and tracks the document's status. The official source linked on this page is authoritative for any reliance.
P/OPINION 76-110
3(2)
September 28, 1976
Dear :
This is in response to your inquiry whether an agreement
between (named), Inc., and Mr. (x), an employee and
50-percent stockholder, to provide him additional
retirement compensation for past services in return for
certain considerations, is subject to the provisions of
the Employee Retirement Income Security Act of 1974
(ERISA).
You state that Mr. (x) is being bought out and, in
addition, an individual contract was made to provide him
with supplemental compensation.
Under the circumstances, the agreement is an individual
contract with Mr. (x) to render specific personal ser-
vices and does not constitute an employee pension benefit
plan within the contemplation of section 3(2) of the
ERISA.
Sincerely,
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