The plan resolution should document the existence of the plan and the employer's intention. It should also include the class or classes of employees to be covered under the plan (such as officers, sales people, administrators, or full-time employees), the names of participants, and the amount and duration of benefit payments to be made. The plan may be set up so that different classes of employees have different disability benefits.

Selective Participation

Unlike group insurance, participation in salary continuation plans does not have to be open to everyone who works for the company. Thus, these arrangements are typically considered a form of selective executive compensation and are often used as a "golden handcuffs" incentive to help attract and retain key employees.

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