The Deal's Innovative Deal Financing Conference had a session called ESOP Acquisitions: Doing it the Sam Zell Way, with a panel to discuss the following:

New Online Employer Identification Number Application Processes Requests in Minutes provides the details of how you can obtain an Employer Identification Number (EIN) online in minutes. This process can also be used to apply for a Trust Identification Number (TIN):

Alion Science and Technology (McLean, VA)

• Labor Reg. 2520.102(a) - "Method of presentation. The summary plan description shall be written in a manner calculated to be understood by the average plan participant and shall be sufficiently comprehensive to apprise the plan’s participants and beneficiaries of their rights and obligations under the plan. In fulfilling these requirements, the plan administrator shall exercise considered judgment and discretion by taking into account such factors as the level of comprehension and education of typical participants in the plan and the complexity of the terms of the plan. Consideration of these factors will usually require the limitation or elimination of technical jargon and of long, complex sentences, the use of clarifying examples and illustrations, the use of clear cross references and a table of contents."
• Labor Reg. 2520.102-2(b) - "General Format. The format of the summary plan description must not have the effect to misleading, mis-informing or failing to inform participants and beneficiaries. Any description of exception, limitations, reductions, and other restrictions of plan benefits shall not be minimized, rendered obscure or otherwise made to appear unimportant. Such exceptions, limitations, reductions, or restrictions of plan benefits shall be described or summarized in a manner not less prominent than the style, captions, printing type, and prominence used to describe or summarize plan benefits. The advantages and disadvantages of the plan shall be presented without either exaggerating the benefits or minimizing the limitations. The description or summary of restrictive plan provisions need not be disclosed in the summary plan description in close conjunction with the description or summary of benefits, provided that adjacent to the benefit description the page on which the restrictions are described is noted."

The first citation contains the “plain language” requirements. The second citation ensures that the SPD does not mislead the participants. Based on these rules, the post asserts that the SPD is more challenging to write.

What does Washington have to say about ESOPs? This blog post will discuss the current proposed legislation, some indicators of future ESOP policy, and provide links to some additional ESOP information:

• "Allow mistakes. When you criticize an employee for making a wrong choice, he often stops making any choices. View mistakes as learning opportunities, not failures."



• "Share information and your vision. The more employees understand about your company's goals and operations, the more they will appreciate the importance of their work, and the more likely they will be to take responsibility."



• "Loosen control. Giving others room to do things their way runs counter to the entrepreneurial mindset. Yet if you want to succeed and are meeting company goals, give employees room to find their own way, even if their route differs slightly from yours."

Cost of Building an Employee Ownership Culture

A press release discusses the results of Syzygy Consulting Group’s annual compensation survey and provides some employee ownership insight:

The ESOP Promotion and Improvement Act of 2007 (S. 1322) was introduced on May 7, 2007 by Sen. Blanche Lincoln [D-AR] and now has four co-sponsors:

This section discusses Notice 2007-78 - 2008 Transition Relief and Additional Guidance on the Application of § 409A to Nonqualified Deferred Compensation Plans.

"Treasury officials informed Congress yesterday that they will enforce the new PPA combined plan deduction limits under Internal Revenue Code §404(a)(7) in
accordance with the language in the proposed PPA technical corrections legislation (H.R. 3361/S. 1974). Thus, Q&A 9 of Notice 2007-28 will not be enforced and, in a defined benefit/defined contribution plan combination situation, if the DC contribution was not greater than 6%, Code §404(a)(7) does not apply to the defined benefit plan.

ESOP Association Blog

Deduction Rules

• "Employee Ownership - W. L. Gore, Newark, Delaware and 45 locations worldwide, Founded: 1958 / Employees: 7,500 Annual Revenue: $1.84 billion"
• "Social Enterprises - Pioneer Human Services, Seattle, Washington, Founded: 1963 / Employees: 1,000 Annual Revenue: $60 million"
• "Creative Cooperatives - Weaver Street Market, Carrboro, North CarolinaFounded: 1988 / Worker-owners: 92, Consumer-owners: 9,794 / Annual Sales: $20 million"
• "Community Development - ONE DC, Washington, DC, Employees: 8 / Housing Units Organized: 1,000+ Annual Revenue: $750,000"
• "Community Land Trusts - Champlain Housing Trust, Burlington, Vermont, In operation since: 1984 / Members: 5,000+ Annual Revenue: $5.9 million"
• "Cutting Edge Ownership - Market Creek Plaza, San Diego, California, Initial Public Offering: 2006 / Number of Investors: 416 Project value: $23.5 million"
• "Public Pensions – CalPERS, Based in Sacramento, California, Founded: 1932 / Plan Participants: about 1.5 million Assets: $244 billion"

The article provided the following employee ownership comments:

The Rules and Regulations section has been updated to include the following: