Starting May 1, the company said its CMS Energy Common Stock Fund will no longer be open for new 401(k) investments and the employer’s match will no longer be in CMS Energy Common Stock, the Detroit Free Press reported.
Participants will be able to reallocate investments
in CMS Energy Stock Fund to other plan investment
alternatives. Beginning November 1, 2007, any remaining
shares in the CMS Energy Stock Fund will be sold and the
sale proceeds will be reallocated to other investment
options, the news report said.
The money will be reallocated by the employees and the amount they have in their CMS stock fund will be allocated to other options. The company also said it will pay the brokerage fees and commissions related to the transfers.
“This change was made primarily to reduce the
company’s exposure to lawsuits in connection to the
employee savings plan,” Jeff Holyfield, a spokesman for
CMS, told the newspaper. “There are several other
companies that are taking this step.”
According to the news report, any shares employees own outside the 401(k) plan will not be affected by the change.
Officials at CMS said there were about 9,800 employees and retirees who participate in the 401(k) plan, which began in 1963. As of Feb. 20, there were 10.7 million shares of CMS common stock in the company’s stock fund.