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Full Version: Re-Allocation of Terminated/Paid Participant's Shares
BenefitsLink Message Boards > Retirement Plans > Employee Stock Ownership Plans (ESOPs)
Judy D
When a terminated participant is paid his entire vested interest in cash, and the employer stock that was previously allocated to his account remains in the trust, should that stock be reallocated to the remaining participants' "employer stock" accounts or is it held in the pooled "other investments" portion of the trust?
Kirk Maldonado
The "other investments" account in an ESOP is aptly named; it is for investments other than employer stock. Thus, employer stock should never be allocated to the "other investments" account.
RLL
What does the ESOP plan document say?
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