Motivate employees with ownership.

Employee Stock Ownership Plans (ESOP) are employee benefit plans designed to primarily invest in company stock. Unlike a 401(k) plan, only employer contributions are made to an ESOP and generally the plan’s investments are controlled by the employer. The ESOP provides employees with an opportunity to share in the financial risks and rewards of the company, leading to increased employee loyalty, engagement, and job satisfaction. Alerus consultants can help build the best plan for your situation and employees.

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Alerus also offers independent fiduciary services for ESOP related transactions of all sizes and types including:

  • Buying and selling employer stock
  • Analyzing and approving annual ESOP valuations
  • Voting or tendering shares when a participant pass-through vote is not required
  • Responding to legitimate offers to purchase the company
  • Investing and monitoring plan assets (other than employer stock)
  • Custodial and trust administration, including certified reporting
  • Monitoring repurchase obligations

With extensive ESOP experience, our Alerus consultants are ready to listen, assist, guide and provide creative and meaningful solutions. Our administration services include:

  • Determination of participant ESOP eligibility
  • Calculation of the allocation of stock or cash to participant accounts as a result of loan payments
  • Calculation of individual participant vested percentages
  • Creation of ESOP participant account statements
  • Payments of benefits to former participants
  • Filing of ESOP tax returns (IRS Form 5500)
  • Combined ESOP and defined contribution compliance testing
  • Repurchase obligation and plan design consulting