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Full Version: Frozen ESOP Participation
BenefitsLink Message Boards > Retirement Plans > Employee Stock Ownership Plans (ESOPs)
SMMoran
ESOP loan was fully repaid in July 2007, with the company repurchasing all unreleased shares. Eligibility section was amended to freeze future participation at that time.

Three participants were terminated in 2007 prior to the participation freeze. They were re-hired in 2008. Should they:

a. follow the re-hire rules in the plan doc (no breaks in service, so re-enter plan with all service intact), or
b. be considered non-participants since participation is now frozen.
Sieve
Depends how the amendment "freezing" participation was worded. Was it broad enough to cover re-hired participants, or only newly-eligible participants?

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