The ESOP Association Employee Ownership Blog discusses the President's Economic Recovery Advisory Board (PERAB) Report Suggesting the Elimination of "Special ESOP Rules" in White House Task Force Suggests Eliminating ESOP Tax Benefits:

• Steve Voigt , Chief Executive Officer, King Arthur Flour, Norwich, VT
• Bill Carris , Former Owner, Carris Reels, Proctor, VT
• Cindy Turcot , Chief Operating Officer, Gardeners Supply Company, Burlington, VT
• Jon Crystal , Executive Director, Vermont Employee Ownership Center, Burlington, VT
• Jeff Clark , Operations Manager, Chroma Technology Corporation, Bellows Falls, VT
• Tom McCabe , Treasurer, Pizzagalli Construction Company, South Burlington, VT
• Bruce Seifer , Assistant Director for Economic Development, Community &Economic Development Office; City of Burlington, Burlington, VT
• Christopher Mackin , President, Ownership Associates Incorporated, Cambridge, MA
• Bill McIntyre , Director, Ohio Employee Ownership Center, Kent, OH

Here is an audio report from the committee meeting, including comments from some of the above-mentioned witnesses. U.S. Senate committee hears from Vermont businesses also discussed the meeting, noting that ESOP companies could help lead the country out of the recession:

Earlier this year we discussed Positive ESOP Legislation and the Importance of Remaining Vigilant. In our discussion we talked about President Obama's executive order creating a commission focused on reducing the federal debt and how a tax reform panel was folded into the review. The President's Economic Recovery Advisory Board (PERAB) met yesterday and approved its report, The Report on Tax Reform Options: Simplification, Compliance, and Corporate Taxation:

Mark Harbeke, author of the Winning Workplaces blog, has written a follow-up to my recent post on Key Factors to Improved Employee Engagement Levels. Studies Reveal a 400 Percent Decrease in Shareholder Returns Linked to Poor Employee Engagement Since 2007 discusses a Hewitt study and "The Global Workforce Study", an October 2007 study by Towers Perrin, to demonstrate that it is in a company's best interest to "take up, or improve upon, their long-term strategy to motivate employees to create a more harmonious and productive workplace":

In our 2010 ESOP Company Survey discussion we noted that a recent ESOP Association company survey found that the average ESOP account balance was just under $200,000. Company Survey Data on Average Account Balances of ESOP Companies Raises Eyebrows discusses how some in the retirement plan industry have been skeptical of the results and reiterates the method of gathering the data:

Simple Performance Management Practices that Drive Up Employee Engagement shares four best practices that will improve employee engagement:

The August 16, 2010 Employee Ownership Update is online and discusses the following:

We have discussed The Congressional Company Visit and how the August Recess is a great time to schedule a meeting with your representatives. Lobbying 401 shares a great success story of how one individual attended a town hall meeting, requested a company visit, followed up during a Capital Hill Visit, participated in a meeting hosted by the New England Chapter, and wrote a note of thanks. The result – the Senator responded with a letter stating that she will support The ESOP Promotion and Improvement Act of 2009 (S. 1612) and employee ownership in general:

The ESOP Association and the Employee Ownership Foundation have released the results of the 2010 ESOP Company Survey:

ERISA Section 404(a) defines the primary duties of an ERISA fiduciary:

The latest edition of Employee Plans News - Issue Number: 2010-06 - August 2, 2010 discusses how an S Corporation cannot deduct expenses for related parties:

Earlier this year we discussed how the IRS has defined ESOP Rebalancing and ESOP Reshuffling and provided an Analysis of the IRS Memo on ESOP Rebalancing and ESOP Reshuffling. In June the IRS held a follow-up ESOP Update Phone Forum on the subject. IRS Clarifies the Limitations on Rebalancing and Reshuffling Provisions in Employee Stock Ownership Plans provides another summary:

Congressman Dana Rohrabacher Receives Joint Committee on Taxation Analysis of H.R. 692 provides an update on H.R. 692: To amend the Internal Revenue Code of 1986 to exclude from gross income compensation received by employees consisting of qualified distributions of employer stock. Rep. Dana Rohrabacher [R-CA] has received a letter from the Joint Committee on Taxation estimating the revenue effect of the bill:

We recently provided some Preliminary Valuation Resources and discussed the importance of Using a Qualified Independent ESOP Valuation Expert. Valuation is key to avoiding problems when creating an ESOP takes a look at some of the risks of establishing an ESOP and discusses the importance of getting an accurate ESOP appraisal: