Blue Ridge ESOP Associates Industry News

Once participants have left the company, it can be easy to lose track of them. Many ESOP’s have distribution policies which delay the time period before distributions begin.  It’s possible for these former employees to maintain balance in the ESOP for five or more years after their termination of employment before they are eligible to request a distribution. There are several important reasons to keep track of these participants. Terminated participants’ balances are factored into some compliance testing and dealing with lost participants years down the road can become a headache quickly.

As plan sponsor there may be a time when you are notified that an employee is getting divorced. This article will assist you in what you need to obtain from the employee, your timing requirements and how you determine if the court order documents are qualified.

The 29th Annual Las Vegas Conference & Tradeshow in Las Vegas - November 13-15. Stop by our booth and enter a chance to win the prize of the day! Also make plans to attend the following sessions with our professionals.

Please join us for the 2019 Mid Atlantic Chapter Summer Breakfast Meeting in Maryland!

This fall Blue Ridge professionals will be presenting at the following meetings and webinars hosted by the  National Center for Employee Ownership.

In Person Meetings:

The Fall ESOP Forum - September 17-18, Salt Lake City, UT - Join Blue Ridge at this event sponsored by the National Center for Employee Ownership (NCEO).  Marie Sherlock will be attending and Renee Stadtmueller be leading the session "Administrative Timeline". The Fall ESOP Forum will be held at the Hilton Salt Lake City Center in Salt Lake City, UT on September 17 & 18, with an optional Pre-conference on September 16.  Both experienced attendees and newcomers will leave the Fall ESOP Forum better informed and prepared to evaluate and implement the next steps for their companies. With 48 sessions over two days, attendees can get a well-rounded introduction to all aspects of ESOPs, or they can dig deep on specific issues, from governance to sustainability to communications. Also offered are two optional half-day pre-conference sessions for additional learning opportunities: Essentials For a Sustainable ESOP and A Crash Course For ESOP Communications- Jumpstart Your Communications and Culture. If you are interested, the Fall ESOP Forum is approved for CPE credit (for accountants) and SHRM credit (for human resources professionals).***Hurry and register since the price goes up after August 16th***

The next in person NCEO meeting with a Blue Ridge professional will be, Is an ESOP Right for You? An In-Depth Look at Employee Stock Ownership Plans - October 9-10 in Omaha, NE. Enhance your company's legacy and benefits plan with an ESOP, the most tax-efficient method of exit planning. This one-and-a-half day seminar brings together leading experts from around the country to provide a comprehensive, practical guide to help you determine if an ESOP will work for your company, and if it does, how to set up a plan that will work. This seminar is also a great way to bring new employees at an ESOP company up to speed or be a refresher for anyone involved with ESOPs. Scott Freund will be presenting about "Plan Design and Operation" on Wednesday afternoon at 4:15 p.m.

NCEO Live Webinars:

NCEO Webinar: Handling the Repurchase Obligation: Financing - September 10, 2019- 12:30-1:30 EDT - This webinar will be led by Alex Grasser and Jon Williams. There are several ways to finance the repurchase obligation, including "pay-as-you-go" funding, pre-funding, paying dividends/S corporation distributions, corporate-owned life insurance, and incurring debt, i.e., releveraging the ESOP. The methods for handling repurchased shares, i.e., redeeming or recycling, will also be discussed. This webinar will cover the mechanics as well as pros and cons of each approach. You will learn:The different strategies available for funding the repurchase obligation; The difference between redeeming and recycling shares; How a combination of strategies may be the best way to finance the obligation

NCEO Webinar: Handling the Repurchase Obligation: Forecasting - September 24, 2019 - 12:30-1:30 EDT - This webinar will be led by Kevin Rusch. You can't manage the repurchase obligation unless you plan for it. This webinar will provide a basic understanding of the process of completing a repurchase obligation forecast and the factors and assumptions that affect the outcome of the forecast, including the impact of specific plan provisions (such as distribution timing and segregating accounts), the impact of the distribution mechanics (recycling vs. redeeming), and interplay between the stock value and the repurchase obligation. You will learn: The process for completing a repurchase obligation study and The impact of various assumptions on the future obligations

NCEO Webinar: S Corporation ESOPs: Administrative Issues - October 1, 2019 - 12:30-1:30 EDT - This webinar will be led by Alex Grasser and Beth Bauer. The legal issues discussed in the first Webinar in our series on S corporation ESOPs have important implications for the administration of your ESOP. Make sure that your company is compliant with the complex rules and procedural requirements for effectively running an ESOP in an S corporation.This Webinar will cover:  benefit distribution, voting, paying S corporation distributions, leveraging. Participants will leave this Webinar with some questions to ask their administration firm to ensure that their ESOP is compliant and that they are getting the greatest benefit from the plan.

To register for the above webinars, please contact Colleen Kearney at ckearney@nceo.org. Mention this offer from Blue Ridge and the NCEO will provide you with access information. If you are a NCEO member, you may simply access the webinar through the NCEO member's area. The NCEO’s live webinars are approved for Continuing Education credit for SHRM, CPE, and occasionally IRS credit hours. Please click here to see additional details on the NCEO web site.

Blue Ridge Professionals, Randy Shrake and John Korloch, will be attending next week's Northwest Chapter ESOP Conference in Spokane, WA. This conference has something for everyone whether you're new to ESOPs or experienced with ESOPs. It is also a great time for northwest ESOP companies to meet James J. Bonham, the new President & CEO of The ESOP Association and the Keynote Speaker for this conference.

Blue Ridge ESOP Associates is pleased to announce the addition of Alexander Grasser to our team of professionals as a Plan Administrator. He has over 7 years of experience in the ESOP industry. His expertise includes Repurchase Obligation and Benefit Level analysis, ESOP administration and plan design. Alex is an active member of the NCEO, The ESOP Association, and serves on the membership and advisory committees for the Ohio/Kentucky Chapter. Alex is a regular speaker at local ESOP chapter meetings and at NCEO events. He earned his Bachelor of Science in Business Administration with majors in Business Economics and Finance from Northern Arizona University. His office is located in Louisville, KY.

Please join us for the 2019 Mid Atlantic Chapter Summer Breakfast Meeting in Maryland!
 

More states are looking to implement incentives for employee-owned companies. This is a great article highlighting some of those incentives for California and Colorado.