S Corporations and ESOPs
S Corporations and ESOPs
The ESOP Repurchase Obligation
Unlike the typical defined contribution plan, which can hold an array of investment types, the assets held by an ESOP primarily consist of the sponsoring company's stock. For an ESOP to be a viable retirement plan, however, there must be a way for participants to convert their shares of stock into cash or cash equivalents.
The Good, the Bad, the Unique, and the Ugly: Is an ESOP Right for Your Organization?
An ESOP merges the tax benefits of a qualified retirement plan with corporate finance, and aligns employees' retirement benefits with corporate goals. This combination of tax-favored employee and corporate benefits is complex, but with planning and an expert team of advisors, it can be a win-win scenario for both employees and employers.
Could You Be Sponsoring a Hidden Retiree Medical Plan?
Do You Need A Pay Strategy?
A well thought out pay strategy is designed to attract and retain key talent. For most employers, this means having an understanding of what other organizations are paying and defining ranges of compensation by position so that managers can make informed business decisions on pay.
Please Pass the Matches: The Unfortunate Truth about Your SPDs
Of course, your employees aren't using your benefit plans' summary plan descriptions to start fires on cold winter nights (we hope). But are they reading them? And if they are, how well do they understand them?
Lump Sum Windows: Focus on the Participants' Experience
Lump sum windows have become extremely popular among defined benefit plan sponsors thanks to increasing PBGC premiums, expected improvement to future mandated mortality tables, interest rate changes, and the desire to de-risk. This article focuses on best practices to optimize the participants' experience, as this will influence the overall success of the lump sum window.
10 Things You Can Do to Keep Your 401(k) Plan on Track
As 2016 comes to an end, it's a great time to review ways to make sure sponsors and participants get the most of their 401(k) plan in the new year. Here are 10 topics to consider for keeping your plan on the right track in 2017.
Minimum Pay Levels - Can We Afford an Increase?
In addition to the state and local statutory changes, there continues to be voluntary moves toward a "living wage" which has been adopted by a number of employers throughout the country. Why has this voluntary move occurred?
Note to Employers and Group Health Plan Sponsors - Take a Post-election Deep Breath
Written by Jason Rothman, J.D. and Bruce Davis
Throughout the past twelve to eighteen months, the American public has been hearing about the actions different presidential candidates would take with regards to health insurance (i.e., Obamacare), minimum wages and various other labor, employment and employee benefits matters. Today, Donald Trump is officially our new President-Elect. This raises an important question — what should employers be considering today related to such employee benefit matters?
Society of Actuaries Updates Mortality Table
On October 20, 2016, the Society of Actuaries released their annual update to the RPEC_2014 mortality table model and improvement scale. The new model incorporates three additional years of U.S. mortality data (2012-2014). The model's year-over-year stability was also enhanced by modifying two input variables. The updated improvement scale based on this version is named MP-2016.