Jump to content

Search the Community

Showing results for tags 'esop distributions'.

  • Search By Tags

    Type tags separated by commas.
  • Search By Author

Content Type

Forums (Message Boards)

  • Retirement Plans
    • 401(k) Plans
    • Defined Benefit Plans, Including Cash Balance
    • Retirement Plans in General
    • Distributions and Loans, Other than QDROs
    • IRAs and Roth IRAs
    • 403(b) Plans, Accounts or Annuities
    • Cross-Tested Plans
    • Correction of Plan Defects
    • SEP, SARSEP and SIMPLE Plans
    • Qualified Domestic Relations Orders (QDROs)
    • Employee Stock Ownership Plans (ESOPs)
    • Plan Terminations
    • Governmental Plans
    • Plan Document Amendments
    • 457 Plans
    • Investment Issues (Including Self-Directed)
    • Operating a TPA or Consulting Firm
    • Estate Planning Aspects of IRAs and Retirement Plans
    • Continuing Professional Education
    • ERPA (Enrolled Retirement Plan Agent)
  • Issues Spanning Multiple Types of Plans
    • Form 5500
    • Communication and Disclosure to Participants
    • Litigation and Claims
    • Church Plans
    • Securities Law Aspects of Employee Benefit Plans
    • Mergers and Acquisitions
    • Multiemployer Plans
    • International, Expat Benefits
    • Miscellaneous Kinds of Benefits
  • Health & Welfare Plans
    • Cafeteria Plans
    • Health Plans (Including ACA, COBRA, HIPAA)
    • Health Savings Accounts (HSAs)
    • VEBAs
    • Other Kinds of Welfare Benefit Plans
  • Executive Comp; Section 409A
    • 409A Issues
    • Nonqualified Deferred Compensation
  • Miscellany: Other Than Employee Benefits
    • Using the Message Boards (a.k.a. Forums)
    • Humor, Inspiration, Miscellaneous
    • Computers and Other Technology
  • User Groups (Unofficial)
    • ftwilliam.com
    • Relius Administration

Find results in...

Find results that contain...

Date Created

  • Start


Last Updated

  • Start


Filter by number of...


  • Start





Website URL






Found 2 results

  1. An ESOP has a standard distribution policy, 5-year wait, payment thereafter in 5 equal installments (no acceleration below $5K, no segregation of stock accounts, fees fully paid by the Sponsor). Last year the installments were incorrectly counted and participants who should have received their 4th installment (i.e. 50% of the available balance), their payment was calculated based upon a 3rd installment and received only 33% of the available balance. While this may be an operational failure for not following the terms of the document, is there a correction to be made? If future company stock gains are neutral or positive, I don't see that the participants were disadvantaged in any way that would produce a basis for a correction. What about a participant who was due their 5th installment(100%) but only received 50% of their available balance and now will need an additional distribution? Are they harmed vs a comparison to the broader stock indexes? How should future installment amounts be calculated, does the missed amount all get made-up in the next payment, or are they calculated normally based on the remaining periods?
  2. I'm a former employee of a company that offers ESOP as a benefit. I was laid off in September of 2010 and was told that the company will hold the money for 60 month period. When i contacted the company in 2015 I was told that I had to wait until the 5th plan valuation after separation, or 2016. In 2016 I was sent information on elected a lump sum distribution. I contacted the company and was told that wold need to make the election between July 1 and September 30, 2016. They payment would then be made no later than the end of the year (by December 31, 2016). I elected my lump sum distribution on July 8, 2016. On November 18, 2016 I contacted the financial company that would process the distribution. I was told that the payment would be processed no later than December 31, 2016. I checked again on December 29, 2016 and on December 30, 2016 that financial company again said that, per plan policy, payments would be processed by December 30, 2016. On December 31, 2016 I received a letter from the company that was dated December 30, 2016. The letter stated that because sales were not as anticipated and industry competition was stronger than anticipated, changes to the ESOP plan have to be made. It explains payments to former employees will be deferred. It does not say for how long. Also, the letter says lump sum payments will no longer be made and payments will be made over 5 annual installments once participants become eligible for distributions. I have not received a summary plan description since 2005 (I no longer even know where it is). I stopped by the company to view the SPD and was told that the person who has access was gone for the day, so I will be back today to pick up copies. I am wondering if this type of last minute notice is sufficient. Also, I am already eligible for distribution, so shouldn't I at least be getting one of those five annual installments? I am not sure how I can make this company pay me my money. The attorney I contacted said if the account is not worth at least $100,000 it is not worth it to litigate. I know $27,000 is not a lot of money to most, but it will make a world of difference to my family. The letter is attached, and it does not offer much information. I would just like to know when I can expect to get paid.
  • Create New...