ESOPNovice

I do not know and that's why I asked. The reason I am speculating is because previously they did not allow cash segregation (so keeping my cash value invested in company ESOP stocks) and now they made plan changes to allow one time lumpsum distribution offer this year or forced cash segregation next year. I am skeptical when people hand over money when they do not need to especially by amending the plan. they are not required to distribute to me for next few years under original plan. Yes because, the original plan did not mention about segregation whatsoever and the plan just changed for this one time offer.

Thanks ESOP Guy. Isn't this non-fiduciary to keep the employees money locked in company shares and convert to cash segregated when they KNOW shares will be sold at higher price in a year or so during sale ?

I left the company few years ago and holds the ESOP stocks (not cash) in my ESOP account per yearly certificates issues by the previous employer. The company sent out a new letter mentioning they are allowing one time lump-sum distribution for terminated employees at the last years valuation otherwise they will convert the shares to cash next year per recently made plan amendment and distribute the cash in future per plan. I suspect company is planning to get acquired and this is the way to get as much stock back as they can to sell it at higher when get acquired. My question is can the employer change the plan terms like this and can they segregate the terminated employees to cash before company sale ? What happens if the ESOP stocks and cash accounts gets closed by the buyer of the company ? My concern is I don't want to miss the upside (appreciation due to suspected sale) especially after company not letting the terminated employees cash segregated and have forced invested in company ESOP stocks for many years.