Qualifying Employer Securities definition

Qualifying Employer Securities has a specific meaning under ERISA and may not include all securities.

Qualifying Employer Securities. Employer securities, as that term is defined in ERISA Section 407(d)(5).

Qualifying Employer Securities means common stock issued by the Employer (or by a corporation which is a member of the same controlled group) which is readily tradable on an established securities market in accordance with Code Section 409(l) or otherwise qualifies under Code Section 409(l). Noncallable preferred stock shall be treated as Qualifying Employer Securities if such stock is convertible at any time into stock which meets the requirements of the previous sentence and if such conversion is at a conversion price which (as of the date of the acquisition by the tax credit employee stock ownership plan) is reasonable in accordance with Code Section 409(l)(3). A security is “readily tradable on an established securities market” if the security is traded on a national securities exchange that is registered under section 6 of the Securities Exchange Act of 1934 (15 U.S.C. 78f); or the security is traded on a foreign national securities exchange that is officially recognized, sanctioned, or supervised by a governmental authority and the security is deemed by the SEC as having a “ready market” under SEC Rule 15c3-1 (17 CFR 240.15c3-1).

Examples of Qualifying Employer Securities in a sentence

• If the Employer so elects in the Adoption Agreement, the Employer and/or Members may direct that contributions will be invested in Qualifying Employer Securities (within the meaning of Section 407(d)(5) of ERISA) through the Employer Stock Fund.

• Subject to the limitations contained in Sections 3.9 and 3.5.2, for each Plan Year the Employer will contribute in cash and/or Qualifying Employer Securities, Matching Thrift Contributions to the Trust Fund in an amount, if any, calculated by reference to the Participants' Employee Thrift Contributions, as specified in the Adoption Agreement.

• More concretely, with EU political deliberation now so concentrated in regulatory processes that involve substantial elements of delegation and thus lie beyond the reach of conventional legislative oversight, the public sphere conception is so far removed from evolving practice that it cannot serve as a guide to reform.Indeed, it may be that awareness of this impracticability explains the distinctive vacillations of proponents of this view.

• The prices of Qualifying Employer Securities as of the date of the transaction shall apply for purposes of valuing distributions and other transactions of the Plan to the extent such value is representative of the fair market value of such securities in the opinion of the Plan Administrator.

• Contributions of property other than cash or Qualifying Employer Securities shall be subject to the approval of the Trustee and the Plan Committee.

More Definitions of Qualifying Employer Securities

Qualifying Employer Securities or "Company Stock" means the shares of common stock of the Company as described in Section 4975(e)(8) of the Code (or of a corporation which is a member of a controlled group with the Company) which is readily tradeable on an established securities market; or if not readily tradeable, meets the following criteria:

Qualifying Employer Securities means (a) any stocks or other equity securities issued by the Company or an Affiliated Company; or (b) any bonds, debentures, notes or certificates or other evidences of indebtedness of the Company or an Affiliated Company which are described in Section 503(e) of the Code and Section 407(e) of ERISA.

Qualifying Employer Securities means any security that is issued by the Company or an Affiliated Employer and that meets the requirements of Code Section 409(l) and ERISA Section 407(d)(5).

Qualifying Employer Securities means common stock issued by the Company, or by a corporation which is a member of the same controlled group as defined in Code Section 409(1)(4), having a combination of voting power and dividend rights equal to or exceeding that class of common stock having the greatest voting power and the class of stock having the greatest dividend rights.

Qualifying Employer Securities means common stock issued by the Employer or an Affiliated Employer which is readily tradeable on an established securities market. If there is no common stock which meets the requirements of the preceding sentence, the term “Qualifying Employer Securities” means common stock issued by the Employer or an Affiliated Employer having a combination of voting power and dividend rights equal to or in excess of that class of common stock of the Employer or any Affiliated Employer having the greatest voting power and that class of common stock of the Employer or any Affiliated Employer having the greatest dividends rights.

Qualifying Employer Securities means qualifying employer securities as defined in Section 4975(e)(8) of the Code.

Qualifying Employer Securities means securities that, with respect to the holder thereof, constitute "qualifying employer securities" within the meaning of section 407(d)(5) of the Employee Retirement Income Security Act of 1974, as amended, and "employer securities" within the meaning of section 409(l) of the Code.