What is the term for a plan that defers an employee's compensation to a future date, often for retirement income?

A deferred compensation plan is specifically designed to delay an employee's income until a later date, such as retirement. This type of plan provides employees with the ability to set aside a portion of their income, which can then grow tax-deferred until it is paid out. This is beneficial for employees as it can lead to tax savings and can help them secure additional income during retirement.

Defined benefit plans are pension plans that provide a predetermined payout at retirement, based on factors such as salary and years of service. While these plans do provide retirement income, they do not specifically defer compensation in the way that deferred compensation plans do, as the contributions and benefits are structured differently.

Retirement savings plans, such as 401(k)s or IRAs, do encourage employees to save for retirement but do not inherently refer to the deferral of compensation as explicitly as a deferred compensation plan does.

Employee stock option plans grant employees the option to purchase stock in the company at a fixed price but are not focused on deferring compensation for retirement purposes.

Thus, a deferred compensation plan is the correct term for a strategy specifically aimed at deferring employee income to a future date, often linked to retirement benefits.