Summary
Amgen Inc. (AMGN) filed an 8-K on November 21, 2005, reporting an amendment to its Nonqualified Deferred Compensation Plan (the "Plan"). The amendment was made to incorporate transition rules permitted by the IRS under Section 409A of the Internal Revenue Code. This filing is primarily administrative and aims to align the company's compensation plans with new tax regulations, providing clarity on deferred compensation for its executives.
Key Highlights
- 1Amgen amended its Nonqualified Deferred Compensation Plan to comply with IRS Section 409A transition rules.
- 2Participants have until December 31, 2005, to elect to revoke their participation in the Plan.
- 3Revocation of participation will result in the distribution of participant deferrals (adjusted for earnings) in 2005, subject to taxable income.
- 4Outstanding 2005 deferral elections, including bonuses payable in early 2006, will be canceled upon revocation.
- 5Company contributions to Plan accounts are not eligible for distribution under the revocation option.
- 6The amendment allows participants to make separate distribution elections for each year's deferrals (effective January 1, 2005) and for all prior deferrals (pre-January 1, 2005).
- 7Distribution elections for 2005 and prior deferrals must be made by December 31, 2006.