Compass
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Bates & Company, Inc.
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Loan & Distribution Specialist AimPoint Pension
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Defined Benefit Combo Cash Balance Compliance Consultant Loren D. Stark Company (LDSCO)
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AimPoint Pension
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Regional Vice President of Sales The Retirement Plan Company
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ESOP Repurchase Obligation Insights: The Cash-Out Dilemma
National Center for Employee Ownership [NCEO] Dec. 15, 1999 "There are two reasons that companies want to do delay distributions. First, they want to discourage employees from leaving to gain access to their account balances. While there do not seem to be any statistics or formal studies on this issue, there is some anecdotal evidence that, particularly in periods of low unemployment (i.e., when it's easy to get another job) and high stock prices, employees may quit in order to cash out their ESOP balances.... The second reason for delaying distributions is to take advantage of the increased planning horizon that it provides." |
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