Blue Ridge ESOP Associates Industry News

The ESOP Benefit Level

Posted by Dustin Pirie

Aug 25, 2023 8:54:37 AM

Each ESOP is unique and must consider their own company goals when deciding the appropriate benefit levels. There should be an ongoing balance between the company cash flow and participant benefit levels. The goal is to maximize the expected return for the participant, however, to do so the ESOP program must be sustainable and not hinder the growth of the company. A consideration especially as an ESOP matures is determining the appropriate benefit level. Consistent benefit levels can help with a sustainable repurchase process and set expectations for the plan participants. Benefit levels are measured based on the contributions and the fair market value.

Read More

Topics: Repurchase Obligation, ESOP Loan Agreement

Experience the Leader in Personalized ESOP & 401(k) Administration

Blue Ridge ESOP Associates can provide everything you need to administer your ESOP, 401(k) or combination ESOP/401(k) plan. Our full service outsourcing, which can include participant on-line services, provides worry-free  assistance for your HR or Benefits staff, leaving them free to concentrate on other responsibilities.

Subscribe to Email Updates

Recent Posts