Morgan Lewis on ESOPs
March 2005

In this Issue:

• IRS Corrects 409(P) Regulations:
  On March 12, 2005, the IRS issued a notice correcting the Temporary Regulations, deleting the offending provision.
• Class Certification Granted in United Airlines ESOP Case:
  In February 2005, a federal court held that a suit brought on behalf of the participants in the United Airlines ESOP against the ESOP trustee and administrative committee could proceed as a class action.
• Court Decision in EDS Class Action Suit Garners Attention From the ESOP and Business Communities:
  A recent federal district court decision has drawn attention from the ESOP community, because of the chilling effect the decision could have on employers’ willingness to offer company stock as an investment option to employees.
• Mandatory Rollover Rules Go Into Effect March 28:
  All qualified plans, including ESOPs, that allow for involuntary cash-out distributions of accounts of less than $5,000 are subject to these new rules and must comply.
• Calendar of Events

For the full story, please view the PDF.