employee stock ownership plans Archives

Benefits | March 9th, 2021

Plan Sponsor Roundtable: The New Focus on Financial Wellness

Plan sponsors discussed benefits they consider part of their financial wellness offerings that might not typically be viewed as such.

Benefits | February 17th, 2021

Employers Begin to See Long-Term Value of Stock Options

Equity compensation has not traditionally been used for retirement savings, but there are ways to incorporate it into employees’ long-term...

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...

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