It is important to review your administration report before participant statements and distribution forms are sent out. This is the primary reason that we provide a draft report for the Plan Administrator to approve. It can seem like a daunting task when you receive a 50+ page report from SES Advisors. So below are some tips for items to check when reviewing the report.
Although it may seem counterintuitive, this article will not follow your report from page one to the end. It is best to ...
Steiker, Greenapple & Fusco, P.C., a nationally recognized law firm focusing on Employee Stock Ownership Plans (ESOPs), is proud to announce the hires of Bart R. McIlonie and Sean-Tamba Matthew, two attorneys who have joined the firm.
"Bart brings terrific ESOP experience to SG&F and Sean is an excellent young lawyer with a commitment to social impact. Both of them will be important parts of our growing team," said James G. Steiker, Chairman and CEO of Steiker, Greenapple & Fusco, P.C. "We're ...
When an ESOP is implemented, it is common for the distribution provisions in the plan document to follow the ESOP specific distribution rules defined by Section 409(o) of the Internal Revenue Code. This section of the code specifies the outer limits within which a plan must make distributions to participants.
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As many of you are wrapping up another year’s ESOP administration (or soon to be), you may be breathing a sigh of relief that you made it through another administration cycle. Because ESOPs are complicated and unique, they can be particularly challenging to manage. While you have outsourced the recordkeeping to SES, there are other ways we can partner with you to ease your administrative responsibilities. Regardless of whether you are a new ESOP, or have been around awhile, consider the ...
When a Plan participant who had previously terminated employment is rehired, questions inevitably arise. When is an employee eligible to actively participate again? How is their vesting affected? What if they were receiving installment distributions? While the Plan document is the ultimate source for answering these questions, this article will provide an overview of Federal regulations governing what a Plan is allowed to do.
When an employee is re-employed, the Plan document must be reviewed to determine whether the document has a ...
NCC Automated Systems, an integrator and manufacturer in the food packaging, and ophthalmic automation industries, announced today that the company has formed an ESOP (Employee Stock Ownership Plan). In the transaction, ownership sold a significant interest to a newly created Employee Stock Ownership Trust, allowing current and future employees to gain a beneficial ownership interest in the Company without any personal cash investment.
Read the full article here.
What is Diversification?
Section 401(a)(28)(B) of the Internal Revenue Code creates a requirement for ESOPs holding employer securities to allow for the diversification of a participant’s stock account once they become a Qualified Participant. Generally, a Qualified Participant is defined as a participant who has reached age 55 and completed 10 years of participation in the Plan. Satisfying these requirements triggers the beginning of the Qualified Election Period, which is generally defined as the 6-year period beginning with the first day of ...
When someone says “Happy New Year” or “have a good year”, most of us do not stop to think what that means. We automatically think 365 days, or the year 2017. But what does “year” mean in the ESOP world? As with most things involving an ESOP, one word can have many diverse meanings. Here is a summary of the most common uses of the word “year” when dealing with ESOP plan administration:
• Plan Year: This is defined in the ESOP ...
The firm formerly known as Steiker, Greenapple & Croscut P.C. is pleased to announce that Paul S. Fusco has become a named partner of the firm. As such, the firm has changed its name to Steiker, Greenapple & Fusco P.C., effective immediately.
"We have been thrilled to have Paul as a partner and greatly respect his work, his commitment to employee ownership, his commitment to his clients, his commitment to his partners and his commitment to the ESOP community," said James G. ...
Four attorneys with Steiker, Greenapple & Fusco, P.C., a boutique law firm focusing specifically on employee stock ownership plans (ESOPs) will be offering their expertise on (ESOPs) at different times and locations during October and November:
Steiker, Greenapple & Fusco P.C. (SG&F), will be offering their experience and knowledge on ESOPs at three conferences covering the following topics: Internal trustee review and annual valuation reports at The ESOP Association's New England Chapter Annual Fall Conference in South Portland, Maine on Oct. 6 and 7; What paralegals ...