Guest Letocha Posted February 12, 2000 Posted February 12, 2000 1. Is an ESOP required to furnish information about the valuation of the employer stock in the ESOP to its participants? 2. One way to try to figure out the first question: Since Form 5500 must be made available to participants, is information on the stock valuation required on Form 5500 for ESOPs?
RLL Posted February 28, 2000 Posted February 28, 2000 The ESOP's annual report (Form 5500), as well as the audited financial staements (if required) will reflect the most recent year-end valuation of company stock. The summary annual report may also reflect such information. Also, if annual benefit statements are provided to participants, the year-end valuation will be reflected thereon. Other than these ERISA requirements, there is no specific requirement for periodic disclosure of the valuation of employer stock held by an ESOP. If the employer stock is publicly-traded, however, participants can easily obtain current stock market quotations. You raise a very good point, Letocha. If an ESOP holds employer stock that is not publicly traded, perhaps ERISA should include more specific disclosure requirements regarding the valuation.
Recommended Posts
Archived
This topic is now archived and is closed to further replies.