Here's what I can contribute: The difference between qualified and nonqualified is ERISA and tax treatment. It would be a deferred compensation plan, and not anything related to a life insurance or annuitization, based on how it was stated. It isn't really "pension" but the overflow of a pension plan, such as, the executive employees are maxed out in the pension, and there is a way to stash this money for later. It and its growth/earnings are tax deferred for income tax purposes. It would have been taxed for Social Security and Medicare when the employer contributed it to the plan. Think of the scenario as a Bonus, but the takehome was not distributed and therefor, not treated as taxable income, even though it is treated as taxable compensation (FICA).

I found one reference that states this for reference: "Death benefits from nonqualified deferred compensation plans or section 457 plans paid to the estate or beneficiary of a deceased employee are reportable on Form 1099-MISC. Do not report these death benefits on Form 1099-R. However, if the benefits are from a qualified plan, report them on Form 1099-R. See the Instructions for Forms 1099-R and 5498. For additional information, see Deceased employee’s wages in the Form 1099-MISC instructions."

Hope that helps.