"ESOP distributions can be the most complex and challenging area of ESOP design and administration.... The impact of ESOP distribution provisions on company profits must be balanced with the company's desire to provide meaningful benefits to plan participants.... Unfortunately, when the plan administrator exercises discretion to delay distributions or eliminate a single sum payment, it is usually because the company's profitability has declined.... The worst case scenario involves some plan participant special circumstances that may result in an allegation of discriminatory treatment."

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