Application of maximum benefit limits

[StillCrazed]

There are numerous stories of large public pensions well in excess of the limits available for private pensions. Many, but not all, of these public plans use some minimal level of required employee contributions, which create employee-funded benefits that are not subject to the employer-based 415 limit.

In addition, these large benefits are funded and paid through the public plans, but are based on supplemental agreements adding the benefit that the formula provides for others, but the regular plan could not provide. I believe these are a form of non-qualified deferred compensation.

So my questions about these arrangements include:

1. Are these arrangements funded completely during the employment period of the recipient? (I guess not.)

2. Are the benefits subject to forfeiture if the employer enters bankruptcy?

3. Are they accounted in a separate fund for the excess benefit?

4. Is the deferred compensation valued during the accrual period using rules similar to private plan deferred compensation?

5. When do the recipients incur taxable income, when accrued or when paid?

6. Do the employee contributions apply to the separate and non-taxable disability benefits? If so, are they accounted as a separate risk pool?