Morgan Stanley’s Deferred Bonus Program Gets Retirement Law Pass

Deferred bonuses Morgan Stanley LLC pays its financial advisers are exempt from strict requirements under federal employee benefits law, according to the US Labor Department.

The DOL’s Employee Benefits Security Administration issued a rare advisory opinion Sept. 9, allowing the company to continue paying financial advisers deferred performance-based stock and cash awards without pressure to comply with comprehensive pension plan funding, vesting, coverage, and annual reporting standards.

Companies that use bonuses to reward continued service and performance have to walk a narrow path that avoids stepping into pension-benefit territory that comes with strict fiduciary standards and enhanced recordkeeping requirements. The ...