ESOPs (BenefitsLink.com)Headlines re ESOPs, gathered by BenefitsLink.comThe U.S. Sugar ESOP in Context- (Found June 29, 2008 ) NCEO Executive Director Corey Rosen discusses the U.S. Sugar ESOP (employee stock ownership plan) in light of an article in the New York Times detailing a lawsuit by former U.S. Sugar employees who believe they were cashed out of the ESOP at a much lower price than they should have been. (National Center for Employee Ownership)http://www.nceo.org/library/us_sugar_esop.html New edition of Section 401(k) Plans and Employee Ownership- (Found June 29, 2008 ) The NCEO presents excerpts from the newly released fifth edition of Section 401(k) Plans and Employee Ownership. The book discusses in detail how company stock is used in 401(k) plans, recent litigation in the post-Enron environment, securities issues, dividend deductions, administration, ESOP-401(k) combinations, converting a 401(k) plan to a combination 401(k)ESOP, and more. (National Center for Employee Ownership)http://www.nceo.org/pubs/401k.html Employee Ownership Update for June 2, 2008- (Found June 29, 2008 ) NCEO Executive Director Corey Rosen discusses a district court ruling that a previously decided ESOP case could not be reopened in light of the new legal standard set out in the Supreme Court's LaRue v. DeWolff decision; final ESOP reimbursement rules from the U.S. Cost Accounting Standards Board; controversy over a New York Times article on the U.S. Sugar ESOP; and an upcoming conference. (National Center for Employee Ownership)http://www.nceo.org/columns/cr254.html Guidance Overview An ESOP Fable with a Drafting Tip- (Found June 29, 2008 ) Excerpt: "An interesting case was recently decided by the federal court in the Northern District of Alabama: Pension and Employee Stock Ownership Plan Administrative Committee of Community Bancshares, Inc. v. Patterson . . . . Community Bancshares, Inc. (Bancshares) sponsored an ESOP that purchased Bancshares stock in 1993 and 1998." (Morgan, Lewis & Bockius LLP)http://www.morganlewis.com/index.cfm/bNodeID/4f1d3905-3550-4cce-bdd7-7119fa092979/fuseacti... Guidance Overview Government Contractor ESOP Cost Accounting Rules Finalized- (Found June 29, 2008 ) Excerpt: "When the company is a government contractor with cost-plus contracts, certain ESOP costs are reimbursable to the extent there is room in the overhead of a contract. As a result, the costs associated with the ESOP can be reimbursed by the government to the company. The issue of which costs are reimbursable however, was both controversial and ambiguous prior to final rules adopted on May 1." (Morgan, Lewis & Bockius LLP)http://www.morganlewis.com/index.cfm/bNodeID/4f1d3905-3550-4cce-bdd7-7119fa092979/fuseacti... Official Guidance IRS Announcement 2008-56: Change in Reporting for ESOP Dividends (PDF)- (Found June 29, 2008 ) 2 pages. Beginning with distributions in 2009, the reporting of dividends on employer securities that are distributed from an employee stock ownership plan under section 404(k) of the Code must be on a Form 1099-R that does not report any other distributions. (Internal Revenue Service)http://benefitslink.com/IRS/ann2008-56.pdf IRS Changes Reporting Requirements for Dividends on ESOP Distributions- (Found June 29, 2008 ) Excerpt: "Beginning with distributions in 2009, the reporting of dividends on employer securities that are distributed from an employee stock ownership plan (ESOP) under section 404(k) of the Code must be on a Form 1099-R that does not report any other distributions." (PLANSPONSOR.com; free registration required)http://www.plansponsor.com/pi_type10/?RECORD_ID=41785 Guidance Overview IRS Changes Reporting Requirements for Section 404(k) Dividends from ESOPs (PDF)- (Found June 29, 2008 ) 3 pages. Excerpt: "This change applies only to an ESOP's distribution of cash dividends. Dividends on ESOP employer securities that the corporation pays directly to ESOP participants or their beneficiaries will continue to be reported on Form 1099-DIV. The change in reporting will apply to ESOP dividend distributions made on or after January 1, 2009." (Pillsbury Winthrop Shaw Pittman LLP)http://www.pillsburylaw.com/content/portal/publications/2008/6/2008612134756531/Exec%20Com... Updated Employee Ownership 100 List- (Found June 29, 2008 ) The National Center for Employee Ownership presents the latest version of the Employee Ownership 100 list, which lists the largest U.S. companies that have at least 50% of their stock owned by an ESOP, a stock purchase plan in which most full-time employees can participate, a profit sharing plan or other trust, or some combination of such plans. (National Center for Employee Ownership)http://www.nceo.org/library/eo100.html Guidance Overview Court Rejects Revival of Company Stock Case Based on LaRue Ruling- (Found June 29, 2008 ) Excerpt: "The U.S. District Court for the Middle District of Alabama rejected the attempt by an employee stock ownership plan (ESOP) participant to revive her fiduciary breach case based on the recent U.S. Supreme Court ruling that defined contribution plan participants can seek individual account damages in fiduciary breach suits." (PLANSPONSOR.com)http://www.plansponsor.com/pi_type10/?RECORD_ID=41489 |