Employee Stock Ownership Plans (ESOPs)

At RPAS we work with financial advisors to improve the future for their clients. This is why Employee Stock Ownership Plans (ESOPs) have long been part of our portfolio of retirement plan services.

Employee Stock Ownership Plan (ESOP)

If you have a client who is owned in whole or in part by its employees, then an ESOP may warrant consideration. Employee ownership helps increase productivity and profitability, and improves employees' dedication and sense of ownership, which is why Employee Stock Ownership Plans are a great option to tell your clients about. We have been designing, installing and administering Employee Stock Ownership Plans for years. With an emphasis on top-notch personal service and technical competence in delivering our annual recordkeeping, government compliance and consulting services, we have evolved into the third party administrator of choice among many ESOP service teams. We coordinate a complete range of ESOP professional services, including the following which are delivered by partnering with outside independent professional service firms:

  • Identification and Analysis of Company Objectives.
  • ESOP Feasibility and Design Studies.
  • Actuarial, Liquidity, and Repurchase Liability Analysis.
  • Plan Document Design and Preparation.
  • Plan Implementation.
  • Employee Communication.

Integrate the ESOP with other Employee Benefit Plans

RPAS can help direct action to integrate your client’s ESOP with  other employee benefit plans that may already be in place, including  a 401(k) plan (a “KSOP”, if both plans are combined). To maximize operational flexibility of the ESOP, we use highly specialized computer software capable of tracking multiple categories of stock and classes of stock, in addition to handling leveraging transactions and specialized annual ESOP nondiscrimination tests.

In addition to ongoing consulting and coordination with the extended team of outside ESOP professionals (which may include ERISA and corporate attorneys, appraisal firm, outside trustees, auditor, banker, cash manager, leveraging transaction consultant, etc.), our ongoing role is primarily that of recordkeeper and third party administrator handling government compliance testing, government reporting, participant statements, coordination of all operational matters such as distributions, and conducting an annual review meeting to make sure all aspects of the ESOP design and operation continue to meet the plan sponsor’s changing needs.

Exceptional Service

In terms of a process, our team at RPAS works closely with you and your client to ensure that there is a smooth transition and your client’s ESOP fits into their company and their culture without a hitch. In our experience, ESOPs are always appreciated by the company’s employees, more so when you utilize our experience to coordinate the players and to communicate the details. Contact RPAS now to enhance the future growth of your clients’ businesses and your practice.