fidu

One more try . . . DB plans are prohibited from holding more than 10% of company stock - correct? Are there maximum employer stock limits for DB plans? What if the plan docs and trust agreement are silent? whats the limit then? ANY guidance or relevant ERISA provisions would be greatly appreciated Thanks

Thanks MWeddell. I am looking at 407, and see no mention of DB/DC specifics. However, it was my understanding that only DBs had the 10% limits. otherwise how could so many plans be so heavily invested in company stock? Can anyone please provide some clarification on this issue. Thanks.

If plan documents and trust documents of an erisa governed decfined contribution fund are silent on the issue of amount of permissible company stock the plan can hold, is there a limit. co worker tells me that they can hold up to 100% BUT ONLY if the trust agreement says they can, whereas my understanding was that if the plan/trust documents were silent, DCs can hold up to 100 (compared to DBs that can only hold up to 10%) any guidance or relevant ERISA provisions would be greatly appreciated as always - Many Thanks

After looking into this further, I still have not found any requirement regarding required cash reserves in connection with a plan holding company stock. Thus, I concur with all posted answers - so thanks, and as an funny, interesting (and true) aside to the T+1 issue, after speaking with bankers in India, they tell me the trade settlement process is sooooooooo sloooooooooo it is commonly referred to as T+ ..........................Bisquits. in other words, there is little no situation that follows our current T+3 settlement process. thanks again.

Is there any requirement for an ERISA governed fund to hold a specific amount of cash reserves based upon amount/value of company stock the fund holds? thank you. enjoy the weekend!

wouldnt this corporation-as-trustee issue be preempted by erisa and therefore not be governed under state law?

many thanks once again for all the information and explanation. see you on the message board again sometime soon.

so the participants (executives) of a deferred comp plan would in Enron's case get screwed if there is nothing left at the end of the bankruptcy??

Happy Holidays to all. little help please . . .is a Rabbi Trust a DB or a DC type plan, and why?

Happy Holidays to all. little help please . . .is a Rabbi Trust a DB or a DC type plan, and why? i know its non qualified, but trying to learn a bit more how it works. thanks.

thanks lkpittman. can you clarify what you mean that the underlying plan is unfunded, but the trust does have money in it? im a bit confused. much obliged. hope you had a happy holiday weekend.

Happy Holidays to all. little help please . . .is a Rabbi Trust a DB or a DC type plan, and why?

thanks PAX!

or is it publicly traded stock of the sponsor, which is in turn owned by the plan??

Thanks. So its just stock of a publicly traded company that is owned by the plan?

Can someone please give me a simplistic explanation of what Qualifying Employer Real Property and Qualifying Employer Securities are. THANKS in advance.

Happy monday all. Anyone up to speed on the interaction of the three above mentioned pieces of legilation relating to privacy and information sharing issues within a financial institution. Seems to me that GLB and USAPATRIOT are somewhat at odds. Many Thanks.

under the trust exemption of GLB, how can banks effectivly deal with privacy issues and the mandate vs prohibition on sharing client info/data?? anyone have a relevant comparison on the privacy issues under the two acts?

thanks Becky. I appreciate your insight and look forward to future conversations. best regards

thanks agreed. is there anything particularly applicable to ESOPS in this regard or is is the same issues regardless of plan type? (and equally important - how's the fishin up in crow wing co. this year?)

interesting. but that wouldn't be inconsistant w/ the law, but rather it would be in conflict with market savvy and thus not a prudent investment, however, the trust agreement requires the purchase of company stock. solutions besides resigning????

thanks all. so if plan documents have standing instructions to buy company stock, but market says that would be imprudent, how can you act solely on behalf of the plan participants? follow the plan documents and buy? or breach the trust documents in the name of acting prudently? arent you running the proverbial (and oft actionable )risk of being dammed if you do and if you dont?

A directed trustee has standing instructions/directions to purchase company stock, Market conditions dictate that it would neither be prudent nor best interests of plan participants to currently do so because of various financial matters both internal and external, is the trustee liable for breach if he does not purchase additional company stock?

As trustee, if you are taking investment directions from a QPAM, is your liability in some way limited because of the QPAM;s status. or, in the alternative, does that simply permit investment types which would otherwise be deemed prohibited transactions.?? it was my understanding that if investments were being directed by a QPAM the trustee/custodian/fiduciary was in some way relieved of liability regarding those investments. can anyone confirm, deny or explain this in a bit of detail please. many thanks.

is a custodian/fiduciary of ERISA funds liable for adverse results to plan participants in a hostile takeover/proxy voting situation??