There are multiple definitions - click on the translation that matches your context.

vermögenswirksame Leistung

Substantiv

partial

deferred compensation

phrase

Comparative law notes

Switzerland

In the US: In an ERISA-qualified plan (like a 401(k) plan), the company's contribution to the plan is tax deductible to the plan as soon as it's made, but not taxable to the individual participants until it's withdrawn. The tax benefits in qualifying plans were intended to encourage lower-to-middle income earners to save more, whereby high income-earners already having high savings rates.

Definitions of deferred compensation

English

a term used to describe the payment of part of an employee's income at a later date than usual. Such plans are usually entered into for tax purposes, and include pension schemes and employee stock options etc.

His bonus was $3.3 million, which he took as deferred compensation.