Data and Research | December 15th, 2020 Plan Design Decisions Can Reduce Overconcentration in Company Stock Research from Vanguard supports the continuation of rethinking decisions about company stock offerings in defined contribution plans.
Compliance | October 22nd, 2020 Bill Would Fill Gaps in Previous Retirement Legislation The SAVE Act would allow 403(b) plan sponsors to join open MEPs and incentivize the creation of ESOPs, among other...
Compliance | July 29th, 2020 Settlement Reached in Lawsuit Alleging Imprudent Sale of ESOP Assets ESOP plan committee and Republic Services defendants, as well as GreatBanc Trust Co., have agreed to a $7.9 million payment.
Compliance | May 1st, 2020 DOL, Wilmington Trust Reach Agreement Over ESOP Overpricing The agreement requires Wilmington Trust to pay $80 million to 21 employee stock ownership plans (ESOPs) for which it served...
Administration | April 8th, 2020 Monitoring DC Plans’ Company Stock Investments During Market Volatility Decisions for 401(k) plan sponsors with company stock on their investment menus are different than those for sponsors of true...
Compliance | March 19th, 2020 Insurance Company to Pay $3 Million to ESOP for Alleged Share Overpayment The DOL alleges that the company’s president influenced an appraiser’s valuation and the ESOP’s trustee didn’t do his due diligence...
Compliance | January 7th, 2020 Settlement Announced in Case About Forcing Participants Out of ESOP The case has been stayed until the parties can draft the settlement agreement.
Compliance | January 2nd, 2020 Wilmington Trust Agrees to Settle ESOP Lawsuit It has agreed to pay $5 million into a settlement fund.
Administration | October 23rd, 2019 Reducing the Risk of ESOP Investigations and Litigation An NCEO report provides details about DOL investigations and litigation against ESOPs and provides considerations for ESOP valuations.
Opinions | September 4th, 2019 Pairing ESOPs With 401(k)s Can Heighten Retirement Outcomes Trevor Bare, with Conrad Siegel, discusses the differences between ESOPs and 401(k) plans and how offering both can better prepare...
Compliance | August 8th, 2019 Court Issues Mixed Ruling in Case Over ESOP Stock Purchase The court decision highlights the difficulty in determining the fiduciary status of parties and of making claims for equitable relief...
Data and Research | June 12th, 2019 Study Finds Benefits of ESOPs for Employees and Employers Among other things, workers with employee ownership experienced layoffs six times less often than those without, and employee turnover can...
Compliance | May 28th, 2019 Severance Agreement Bars Former Employee From Suing Over ESOP A federal court judge cited a 5th U.S. Circuit Court of Appeals decision in Chaplin v. NationsCredit Corp. that concluded,...
Benefits | May 24th, 2019 ESOPs More Valuable Than Just a Retirement Savings Vehicle Employee stock ownership plans (ESOPs) have been shown to provide a higher retirement savings balance than other plan types, and...
Compliance | April 3rd, 2019 Prevention the Key to ESOPs Not Violating Nonallocation Year Rules The IRS explains that the rules under IRC Section 409(p) are designed to prevent a group of “disqualified persons” from...
Administration | March 20th, 2019 ESOPs As a Retirement, and Succession, Plan ESOPs can help employees amass greater retirement benefits, as well as help business owners keep control in planning for the...
Data and Research | October 31st, 2018 Companies With ESOPs Report Advantages for Business In addition, 55% of responding companies contributed to their ESOPs an amount equivalent to 11% or more of participants’ pay—far...
Compliance | October 8th, 2018 Members of Congress Ask Trump to Protect ESOPs In a letter, members of Congress accuse the DOL of “regulation through litigation” and ask that clear guidance regarding valuation...
Compliance | August 15th, 2018 Pro-ESOP Bill Signed Into Law Among other things, the Main Street Employee Ownership Act focuses on increasing the role of the Small Business Administration (SBA)...
Compliance | May 11th, 2018 Bill Would Encourage Small Businesses to Create ESOPs The bill would amend Section 7(a) of the Small Business Act, expanding loans to small business employers for the purpose...