Employer Stock in Retirement Plans: Requirements and Risks in Difficult Times
March 19, 2009
Dorsey & Whitney LLP (Minneapolis)
50 South Sixth Street
Minneapolis, MN 55402
Many employers have retirement plans that offer employer stock as an investment. Employer stock has been a popular investment for employees, but poses risks to the employer. Over the past few years there has been increased regulation of employer stock, including notice requirements related to diversification and blackout periods. At the same time there has been increased review of fiduciary decisions with respect to employer stock and ERISA litigation when the employer’s stock declines in value. This presentation will offer a brief overview of the rules governing employer stock in qualified plans, provide suggested best practices with respect to fiduciary duties, and update participants on recent litigation involving employer stock.