Principal to Expand ESOP Business Via Acquisition from Ascensus
The firm will add 800 plans and more than 165,000 participants to its leading ESOP position in the U.S.
Tag: ESOPs
Will ESOPs Finally Get Regulatory Clarity?
SECURE 2.0 requires DOL to create rules for ESOP valuation.
Compliance News
Legislative and Judicial Actions
The DOL updates auditor independence rules; the IRS extends plans’ amendment deadlines for certain CARES Act and Tax Relief Act...
Chicago Consultant Faces New ESOP Lawsuit
The complaint claims ERISA violations against the company for allegedly deflating the plan’s value.
Court Rebuffs DOL’s ESOP Valuation Case Against Engineering Firm
One commentator who works in the employee stock ownership plan space says the ruling represents “one of the most comprehensive rebukes of DOL arguments” in such a valuation...
Pandemic Proved Value of ‘S-ESOP’ Employee Ownership
Workers at employee-owned S corporations, who invest in and own their employers via ‘S employee stock ownership plans,’ report being...
Proposed Bill Would Give 403(b) Plan Sponsors Access to Open MEPs
The SECURE Act's provisions for pooled employer plans (PEPs) did not apply to 403(b) plans.
Republic, GreatBanc Agree to Settlement of ESOP Lawsuit
The lawsuit alleges a series of bad-faith dealings were made that caused losses to the ESOP while benefiting executives.
Wilmington Trust to Pay $80 Million to Settle DOL Investigations
The DOL alleged Wilmington Trust caused losses to ESOPs when it authorized them to pay more than fair market value for privately held employer stock.
Compliance News
Legislative and Judicial Actions
Key legislation, regulations and litigation from Washington, D.C., and the courts.
Servicing Strategies
Sharing Ownership
Advisers help sponsors limit participant use of company stock.
Wawa ESOP Case Stayed Until Settlement Agreement Drafted
A judge previously found eliminating ESOP participants’ right to invest in company stock is not a violation of ERISA’s anti-cutback provisions, but forcing participants with balances greater than...
Wilmington Trust to Pay $5 Million to Settle ESOP Lawsuit
The motion cites as one reason for settlement “probable costs, in both time and money, of continued litigation.”
Cover Story
Advisers’ Future Trajectory
Firms confront a convergence of retirement plan and wealth consulting
Court Finds Former ESOP Participant Released Claims to Sue
A federal court judge found a severance agreement was broad enough to cover Employee Retirement Security Act (ERISA) claims against the trustee of an employee stock ownership plan...
ESOPs Can Reduce Wealth Inequality
New research finds offering an employees stock ownership plans (ESOP) is a way to build wealth that can make a...
IRS Discusses Ways ESOPs Can Prevent Violation of Nonallocation Year Rules
Since there are no prescribed correction methods to address Internal Revenue Code Section 409(p) violations, prevention methods are important considerations for both employee stock ownership plan design and...
ESOPs Offer Additional Business Opportunity for Retirement Plan Advisers
Employee stock ownership plans deliver benefits to employers and employees. Advising ESOPs can bring new opportunities.
IBM Stock Drop Litigation Revived by 2nd Circuit
The decision breaks from other cases in which district and appellate judges have found plaintiffs did not meet strict pleading standards established by the influential Dudenhoeffer decision.