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ESOP - Service Veterans


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Quick Question, Four Veterans who were working for the company, were members of the company ESOP, were called back to duty for one year during the Iraq conflict. They came back after their service and were reinstated to their jobs after 1 year. It was found out later, the company took back 20% of their ESOP stock while they serving in Iraq.  Is this allowed?

 

 

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It's unclear from your post what exactly happened but it sounds like a USSERA violation if the Employer forfeited a portion of their benefit while on active Military duty.

You may want to see if the fact pattern fits one of the FAQs from the DOL.

https://www.dol.gov/sites/dolgov/files/VETS/legacy/files/USERRA-Fact-Sheet-Pension-FAQs.pdf

 

 

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Yeah, we would need more facts to say for sure. 

However, Lou is correct as a general rule USERRA forbids a plan to treat a person on military leave as anything but as still employed if they go back to work immediately upon returning from duty.   As such it is hard to see how they would lose shares.   

I would start by asking questions and getting more facts.    

Once again it is hard to see how it would happen but given how vague the facts are more information is needed to know for sure there is an issue. 

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