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Senate HELP Committee Meeting Discusses S 2909 and S 2914 / ESOPs Could Pull Country Out of Recession

  
  
  
Last Thursday the Senate Health, Education, Labor, and Pensions (HELP) committee conducted a meeting entitled Investing in American Workers: The Benefits of Expanding Employee Ownership. The purpose of the meeting was to educate the public on S. 2909 - Worker Ownership, Readiness and Knowledge Act (WORK Act) and S. 2914 - United States Employee Ownership Bank Act. The listed witnesses included the following:

  • 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:

The hearing, according to Sanders' office, focused on ways employee-owned businesses could help pull the country out of the recession.

"Vermont is a leader in this area," Sanders said after the hearing, according to his office. "Especially in the midst of a recession when unemployment is so high and people are really worried about outsourcing, employee ownership means that those companies are not going to be running to China."

Sanders said Vermont has been a leader in employee ownership, which studies have shown provides economic benefits including greater productivity, morale and likelihood that a company will keep its jobs in the U.S.

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2012 IRS Pension Plan Limits

401(k) Deferral Limit - $17,000

Annual Additions Limit - $50,000

Maximum Compensation Limit - $250,000

Catch-Up Contribution Limit - $5,500

Highly Compensated Employee - $115,000

ESOP 5-Year Distribution Threshold - $1,015,000

ESOP Additional Year Threshold - $200,000

2012 Pension Plan Limits

1989 - 2012 Plan Limits