BASIC ESOP ADMINISTRATION - The ESOP Association

John Burgess - Seyfarth Shaw LLPJonathan Markham – Blue Ridge ESOP AssociatesAllocation – Contributions• Participants may be eligible to receive a portion of theyear’s contributions in any plan year in which they metcertain requirements.▫ Generally a participant will be eligible for a contribution ifthey:• Work 1,000 hours in the plan year and are actively employed atthe end of the plan year.• Plans cannot require more than 1,000 hours.• Terminate employment due to retirement, death, or disability• Plan are not required to provide these exceptions.• Employer Contributions are typically allocated in a proratamanner to all eligible participants based on theireligible compensation or points.