Right to Demand Distribution of Stock in a KSOP

[Scott]

A public company is considering adding its stock as an investment fund under its 401(k) plan and making the stock fund an ESOP so that it can take advantage of the dividend deduction under Code Section 404(k). Under this setup, does the requirement that a participant must be allowed to demand that his benefits be distributed in the form of employer stock apply to his entire account, or just the ESOP portion of the plan (i.e., company stock)?

For example, if at retirement a participant has an account balance of $500,000, $200,000 of which is invested in company stock and $300,000 of which is invested in other available investment funds, is he entitled to demand that the entire $500,000 be invested in the form of company stock, or only $200,000?