Cutback?

[ERISA25]

ESOP currently provides that normal form of distribution is employer stock; ER would like to amend plan to make normal form of distribution cash, but have ER stock as optional form of distribuiton (i.e., participants have to affirmatively elect to receive distribution in ER stock). In my view, there is not a cutback issue because we are not eliminating an optional form of benefit (i.e., we are not eliminating optional protected right to receive distribution in form of employer securities). Any thoughts are appreciated.

[ETA Consulting LLC]

I agree. Both are available, and remaining available, but you're merely changing the default.

Good Luck!