INVESTMENT IN EMPLOYER STOCK Clause Samples
The "Investment in Employer Stock" clause governs the conditions under which a retirement or benefit plan may invest in the stock of the employer sponsoring the plan. Typically, this clause outlines any limits on the percentage of plan assets that can be allocated to employer securities, details participant rights regarding such investments, and may specify procedures for diversification or restrictions to protect plan participants. Its core function is to manage the risks associated with concentrating retirement assets in employer stock, thereby promoting prudent investment practices and safeguarding participants' retirement savings from undue exposure to the employer's financial performance.
INVESTMENT IN EMPLOYER STOCK. Because of the nature of the Plan and Trust, the Trustee shall, subject to Sections 24.04 and 24.05, to the extent possible, invest the assets of the Trust in Employer Stock; provided, however, Rollover Accounts, Transfer Accounts, Deferred Income Accounts, T&F Deferral Accounts and T&F Match Accounts shall be invested in Employer Stock only to the extent the Trustee is so directed by the Participants as provided in Section 24.05. The Trustee is specifically authorized to acquire and hold Employer Stock up to one hundred percent (100%) of such assets of the Trust.
INVESTMENT IN EMPLOYER STOCK a. ☒Plan assets may be invested in Employer stock (Employer stock must be publicly traded.) i Establishment of Employer stock Investment Fund:
A. ☒ is required by the Plan Sponsor, as settlor of the Plan B. may be selected by the Investment Fiduciary ii ☐ All or some Employer Contributions are required to be invested in Employer stock.
A. The following types of contributions are required to be invested in Employer stock:
1. ☐ Standard Nonelective Contributions
2. ☐ Additional Discretionary Nonelective Contributions
3. ☐ Prior Nonelective Contributions
4. ☐ Non-safe harbor Matching Contributions
5. ☐ Prior non-safe harbor Matching Contributions
B. ☐ Participants may transfer investments out of the Employer stock fund more frequently than as required under law C. ☐ Participants may direct investment of other contributions in Employer stock
INVESTMENT IN EMPLOYER STOCK. ☒ Plan assets may be invested in Employer stock (Employer stock must be publicly traded)