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Posted

We have a plan that allows certain employees to purchase equity interests in our company. Is that an ERISA plan?

Would any of the following features make it an ERISA plan:

  1. Right of first refusal.
  2. Employee required to sell stock back to company upon separation from service.
  3. Employee required to sell stock back to company upon death.

Thanks in advance for any help!

Posted

#2 and #3 can be an issue depending on the surroundings, and particularly any terms relating to disposition before termination or attaining a particular age. Check the definition of pension plan.

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