Benefits Blast

On March 27, 2020, President Trump signed into law a massive $2 trillion stimulus bill, the Coronavirus Aid, Relief, and Economic Security Act (the CARES Act or the Act), aimed at shoring up the U.S. economy in light of the disruption caused by the coronavirus pandemic. In addition to the widely discussed individual stimulus payments, the CARES Act contains extensive provisions expanding unemployment insurance, extending tax relief to individuals and employers, adopting healthcare measures, providing economic stabilization funds, and making other emergency appropriations. A number of the Act’s provisions are of particular interest to companies owned by employee stock ownership plans (ESOPs).

In a Generic Legal Advice Memorandum (GLAM) dated December 13, 2019, the IRS provides guidance on whether the amount paid to an employee stock ownership plan (ESOP) participant pursuant to a price protection agreement between the ESOP trustee and the plan sponsor may be treated as an eligible rollover distribution. 

In its 2014 decision in Fifth Third Bancorp v. Dudenhoeffer, the Supreme Court analyzed how to apply ERISA’s fiduciary duties to corporate insiders who oversee company stock funds in ERISA retirement plans – particularly when those fiduciaries have material, non-public information regarding company stock.

Winston & Strawn is pleased to announce the relaunch of the Benefits Blast blog.