Bastards

Intel Shows You How a QSERP Works

In just one year (2005) Intel Corp. moved $200 million of deferred IOU obligations from their high-income executives’ non-qualified deferred compensation pension into the rank-and-file’s pension plan through a QSERP. And then turned right around and "contributed" $187 million back in cash to the plan – which they then claimed as a tax deduction.

So when an executive retires, Intel won’t have to pay him/her – the tax-deferred workers’ pension plan will. And that $187 million Intel "contribution" generated an immediate tax break of $65 million for Intel.

That means that you, as a taxpayer, not only just helped compensate Intel’s already wealthy executives retirement, but also got stuck covering the lost revenue resulting from Intel’s $65 million tax write-off. And that was just for one year.

Additionally bothersome is the fact that Intel manipulated the IRS rules so that well over 50% of the tax-deferred money in their rank-and-file pension plan (which is supposed to be designated for worker-bees) is now dedicated to compensating just 4% - that’s right, just 4% of Intel’s entire work force ... the high-income executives.

Plus those rich executives, rather than being required by the law to pay taxes on what they would have withdrawn from their own non-tax deferred pension plans, are now able to roll their wealth over into an IRA – thus further sheltering their money. And that cost you, the taxpayer, even more lost revenues.