What is the non-discretionary contribution that Bw Premier Collection makes to the NQP for participating employees?
Bw_Premier_Collection Franchise · 2025 FDDAnswer from 2025 FDD Document
The Company has a NQP in which key management employees of the Company, as determined by the Board of Directors, are selected to participate. The NQP is a defined contribution plan, in which participating employees may defer a percentage of their annual salaries and a percentage of any incentive compensation into the NQP. The Company contributes: (i) a non-discretionary contribution of 3% of a participating employee's compensation each pay period, and (ii) an annual discretionary contribution, as determined by the Board of Directors, up to 9% of a participating employee's annual compensation.
Source: Item 23 — Receipts (FDD pages 54–203)
What This Means (2025 FDD)
According to the 2025 FDD, Bw Premier Collection has a Nonqualified Deferred Compensation Plan (NQP) for key management employees selected by the Board of Directors. This plan allows participating employees to defer a percentage of their annual salaries and incentive compensation.
Bw Premier Collection contributes to the NQP in two ways. First, the company makes a non-discretionary contribution of 3% of a participating employee's compensation each pay period. Second, Bw Premier Collection may also make an annual discretionary contribution, as determined by the Board of Directors, up to 9% of a participating employee's annual compensation.
Bw Premier Collection uses a trust to hold funds to cover the NQP liability. The company intends for the NQP and the trust to be an unfunded arrangement for tax-deferred compensation, in accordance with the Employee Retirement Income Security Act of 1974. The company also intends to fund the trust and invest its assets in a way that mirrors each participant's investment elections under the NQP, so that the investment gains and losses of the trust match those credited or debited to participants' accounts.