Re-Allocation of Terminated/Paid Participant's Shares

[Guest Judy D]

When a terminated participant is paid his entire vested interest in cash, and the employer stock that was previously allocated to his account remains in the trust, should that stock be reallocated to the remaining participants' "employer stock" accounts or is it held in the pooled "other investments" portion of the trust?

[Kirk Maldonado]

The "other investments" account in an ESOP is aptly named; it is for investments other than employer stock. Thus, employer stock should never be allocated to the "other investments" account.

[RLL]

What does the ESOP plan document say?