This excerpt taken from the GM DEF 14A filed Apr 27, 2007.
2006 Non-Qualified Deferred Compensation
As described on pages 27 and 28, General Motors maintains two deferred compensation programs for executives, including the Named Executive Officers. The BEP is a non-qualified savings plan designed to allow for the equalization of benefits for highly compensated salaried employees under the SRP and the S-SPP when such employees’ contribution and benefit levels exceed the maximum limitations on contributions and benefits imposed by Section 2004 of ERISA and Sections 401(a)(17) and 415 of the IRC. Since matching contributions to the S-SPP were suspended in February 2006, no corporate contributions were made to the BEP accounts other than contributions related to post-retirement health care coverage for executives hired on or after January 1, 1993. For BEP benefit calculation purposes, the original salaries for 2006 for Messrs. Lutz, Gottschalk, and Devine were used.
The BEP is maintained as an unfunded plan and all expenses for administration of the BEP and payment of amounts to participants are borne by the Corporation. Registrant contributions to employee accounts are denominated in shares of Common Stock, and dividend equivalents are credited on accumulated share balances. On January 1, 2007, the BEP was amended to provide greater flexibility for employee investment options consistent with the investment options elected in the employees’ executive retirement program defined contribution accounts.
The General Motors Deferred Compensation Plan for Executive Employees permits senior level executives to make deferrals to the Plan. Deferrals of AIP and SPP awards may be made into the plan in amounts from 5 percent to 100 percent of the award amount. Available investment options include Common Stock, U.S. Treasury Notes, and the Promark Large Cap Index Fund. Dividend equivalents are credited and accrued on Common Stock units. The Plan does not provide for interest or earnings to be paid at above-market rates.