Blue Ridge ESOP Associates Industry News

Conferences in Review - IL Spring Conference & Mid-Atlantic Spring Conference

Posted by Blue Ridge ESOP Associates

Mar 11, 2019, 2:32:53 PM

Illinois Chapter COLOR logoAt the Illinois ESOP Spring Conference last week, Kevin Rusch presented on a panel that reviewed the roles of "Trustees & TPAs". The panel was able to answer questions from basics like what do they do and why does your company need them to more complex such as share allocations and limiting liability. The purpose of the session was to help companies manage the day-to-day operations of their ESOPs.

DL MAC ConfAt the Mid-Atlantic Spring Conference last week, Dolores Lawrence and Jon Williams presented sessions. Dolores answered "Distribution Dilemmas" questions such as: What do I do if participants won't cash their distribution checks? How do I pay out death benefits to minors? I hear the DOL thinks I'm responsible for finding unlocatable participants who are due benefits. What if I can't find them? Who do I have to pay now if an ESOP loan is outstanding?...These questions were addressed hoping to ease distribution headaches.

JMACon discussed "Advanced Mechanics of Recycling and Redemptions for ESOP Payouts". The session focused on a contrasting discussion of two methods for funding and paying distributions to ESOP participants and covered topics such as: recycling and redemption definitions, pros and cons, environments when one approach is favorable over the other, impact on valuation, target benefit levels, size of repurchase obligation, and releveraging.

Topics: Plan Design, Distributions