ERISA notification on change in structure of company match.

[Guest JACarroll]

Company stock as company match? Are there notification requirements under ERISA? Plan has annual discretionary match which has always been made and has historically been in the form of a cash contribution. Currently considering providing company match for this year in the form of company stock. Plan year ended 7/31/00 and match is historically funded in mid-November. Have a concern that we should have informed participants prior to making the contribution in the form of stock. Does ERISA have a requirement that participants be informed of the sponsor's intent to change the make up of the company match??

[stephen]

I am not aware of any ERISA requirement to notify participants that you are changing from a cash match to a stock match.

However, it could lead to an Human Resources / Employee Morale problem. Especially, if the stock drops in value or doesn't increase as quickly as the employees other matching investments.