When was the Del Taco non-qualified plan amended to include an annual restoration match?
Del_Taco Franchise · 2025 FDDAnswer from 2025 FDD Document
requirements to defer a percentage of their pay on a pre-tax basis. Our contributions under these plans were $3.3 million, $2.3 million, and $2.1 million in each fiscal years 2024, 2023 and 2022, respectively.
We also maintain an unfunded, non-qualified deferred compensation plan for key executives and other members of management whose compensation deferrals or company matching contributions to the qualified savings plan are limited due to IRC rules. Effective January 1, 2016, this non-qualified plan was amended to replace the company matching contribution with an annual restoration match that is intended to "restore" up to the full match for participants whose elective deferrals (and related company matching contributions) to the qualified savings plan were limited due to IRC rules. A participant's right to the Company restoration match vests immediately. This plan allows participants to defer up to 50% of their salary and 85% of their bonus
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 58)
What This Means (2025 FDD)
According to Del Taco's 2025 Franchise Disclosure Document, the non-qualified deferred compensation plan was amended effective January 1, 2016, to replace the company matching contribution with an annual restoration match. This amendment was intended to restore up to the full match for participants whose elective deferrals and related company matching contributions to the qualified savings plan were limited due to IRS rules.
This plan allows participants to defer up to 50% of their salary and 85% of their bonus on a pre-tax basis. In fiscal year 2024, Del Taco's contributions to this non-qualified deferred compensation plan totaled $0.2 million, $0.1 million in fiscal year 2023, and less than $0.1 million in fiscal year 2022. A participant's right to the Company restoration match vests immediately.
For a prospective franchisee, this information is relevant in understanding the overall financial health and employee benefits structure of Del Taco, which can indirectly impact the stability and quality of the workforce at company-operated stores. While franchisees are not direct participants in these specific executive compensation plans, the financial commitments Del Taco makes to its employees can reflect its approach to managing expenses and investing in its personnel.