Diversification Requirements

[Guest JBDixon]

In the event a Qualified Participant fails to make an election during the six year period, do the Diversification Election "rights" expire? EXAMPLE: Employee "X" born in 1940 attains the age 55 during 1995, completes 10 years of participation in 1996, makes no election during the six year period 1997 - 2002. Seven years later, in 2003 may Employee "X", still employed, still a Plan Participant, make a Diversification Election?

[RLL]

Not unless the ESOP document permits the election for the seventh year.