What makes our approach to company stock different?
Pentegra has the expertise and flexibility to make company stock part of your retirement program. We provide a full spectrum of employer stock services and administer stock in a daily valuation trading environment—whether it is traded thinly or traded on a major exchange.
We offer three plan options for incorporating company stock into a retirement program:
ESOP OR EMPLOYEE STOCK OWNERSHIP PLAN
An ESOP provides retirement benefits in the form of company stock, and is frequently used to raise capital, create shareholder liquidity and to keep stock in “friendly hands.” An ESOP allows the plan to borrow money for the purpose of acquiring employer securities, usually at an attractive rate for the benefit of employees. The annual loan repayment results in annual contributions of stock to plan participants.
401(K) PLAN WITH STOCK OPTION
A 401(k) plan with employer stock as an investment option combines the equity ownership of employer securities with the retirement savings benefits of a 401(k) plan, and allows the employer to make matching contributions in the form of stock. In addition, employee 401(k) contributions may be used to purchase company stock. A 401(k) plan with a stock option may satisfy financing objectives at a lower cost than an ESOP alone.
KSOP
A KSOP is an ESOP with a 401(k) feature and provides for both employer stock contributions and employee deferrals. Employer contributions can be made in either stock or cash. A KSOP combines two separate plans, offering simplified administration, streamlined employee communication and greater cost efficiencies.
EMPLOYER STOCK SERVICES
- Coordinate the establishment of trustee/custodian relationship
- Facilitate stock purchases for KSOP contributions through trustee and market maker
- Coordinate stock purchases for IPO
- Review SEC filings for plan provisions
- Provide employee communications regarding the stock offering
- Assist in establishing proxy requirements
- Coordinate the establishment of trustee/custodian relationship
- Facilitate stock purchases for plan contributions through broker and market maker
- Review of SEC filings for plan provisions
- Development of employee communications regarding the stock offering
- Assist in the establishment of proxy requirements