A nonqualified deferred compensation plan includes any plan or other arrangement for deferral of compensation to or on behalf of an employee where payments to or from the plan are not excluded from wages. (See the explanations regarding these plans in RS 01402.326 and RS 01505.031.)

The amount in the "nonqualified plan" box of the W-2 is posted during the regular annual wage reporting (AWR) process to the unposted detail section of the MEF. It is subsequently subtracted from the beneficiary's total earnings for enforcement purposes since the services for these wages were rendered in a prior period.

FO and PSC adjudicators do not post to the MEF, amounts already shown (or that will be shown) in the "nonqualified plan" box of the W-2.

When a beneficiary alleges nonqualified deferred compensation payments for a closed taxable year and these were not properly recorded in a box of the W-2 as required, use the SSA-131 to obtain a signed statement from the employer certifying the amount of such payments for that year(s), along with a description of the kind of payment involved.

If the employer has moved to an unknown address, has gone out of business, refuses to (or is unable to) provide the requested information) accept the beneficiary's explanation if satisfactory. If the explanation is unsatisfactory and there are no other development leads, adjudicators then determine, based on all the facts, whether or not to post any of the alleged SWP.

If the adjudicator determines that no SWP should be posted, or determines to post an amount less than alleged by the beneficiary, adjudicators notify the beneficiary, giving the facts and reason for the decision, and include a reconsideration paragraph.

Adjudicators post the amount of the SP so determined to the MEF.

Adjudicators annotate the "Special Message" field of the MBR with an abbreviated summary of the notice to the beneficiary to serve as documentation of the postings to the MEF.