Kristen Freeman
NuSource Financial
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ESOP Administration Services
We focus on your ESOP, so you don’t have to!
We'll Handle the Hard Part
As a CEO, HR Director, or retirement plan sponsor, managing an Employee Stock Ownership Plan (ESOP) requires meticulous attention to detail and compliance. The complexities of ESOP administration can be overwhelming, but with Blue Ridge by your side, you can rest-assured that your ESOP will operate smoothly and effectively.
With 35 years of ESOP administration experience for more than 1,600 plans, paired with the most advanced ESOP technology in the industry, our ESOP administration services are designed to handle every aspect of your ESOP, from participant eligibility to compliance testing and everything in between so you can focus on your business’s growth and success.
ESOP Administration & Recordkeeping Services
Each period, Blue Ridge executes a comprehensive and complex 7-step workflow to ensure your ESOP is healthy and in complete compliance, with each step undergoing a 4-tier quality assurance (QA) process.
Your team will receive updates on the status of the workflow in our online access portal, ESOPConnection™.
The ESOP Workflow Summary
- Valuation
- Census Update
- Trust Update
- Allocation Update
- Distribution Processing
- Payment Processing
- Form 5500 Preparation & Filing (Q4 Only)
*Blue Ridge can administer plans with quarterly or semi-annual recordkeeping requirements when needed and upon request.
An In-Depth Look at ESOP Administration & Recordkeeping Services at Blue Ridge
Participant Eligibility Management
Blue Ridge will help you maintain accurate records of employee eligibility, including criteria for participation and vesting schedules. As part of our annual testing and reporting services, we verify your employees’ eligibility status follows the provisions outlined in the plan document. We also provide enrollment support to facilitate smooth onboarding of eligible employees into the ESOP, ensuring they understand their benefits and responsibilities.
Trust Accounting
Blue Ridge will ensure accurate accounting and timely management of trust assets. Our team reconciles your ESOP transactions and calculates the number of shares released. We work closely with your external trustee to ensure that your company’s plan records are accurate and consistent.
Plan Allocations
Blue Ridge will administer your allocations according to the terms of your plan document and regulatory requirements, ensuring fair distribution among participants.
Compliance Testing
Blue Ridge will conduct all compliance tests required under the Internal Revenue Code, including aggregated §415 annual addition and §416 top heavy testing. Our staff is versed with the complexities of §409(p), along with several senior consultants who may be integral to the future of the test. Our team remains current with changes in regulations and adjusts testing procedures as necessary to ensure ongoing compliance.
Final Reports
Blue Ridge will provide comprehensive, signature-ready final reports detailing the ESOP’s performance, share allocations, and financial status. We work to ensure your organization submits the appropriate documents on an annual or as-needed basis, which often includes reports for the Internal Revenue Service or Department of Labor.
Certificates
Blue Ridge will also issue certificates of ownership to participants, reflecting their ESOP shares and rights.
Audit Support
Blue Ridge can help your organization prepare for any IRS or DOL audit to ensure all necessary documentation and compliance records are in order and that you are prepared to answer any questions the auditor may have. Should there be any issues identified during the audit, we will work with you to determine the best approach to correct the error, and implement corrective actions.
5500/8955 Filing
Blue Ridge will help to prepare and file Form 5500 and Form 8955 annually, ensuring timely filing and compliance with federal reporting requirements. We also help you maintain thorough records of filings and related documentation for regulatory and auditing purposes.
Distribution Processing
Blue Ridge, in partnership with a paying agent, can handle the processing of all distributions to participants, including retirement, termination, and death benefits. We ensure accurate and timely payments, including tax withholding and reporting, by following a comprehensive and proven process for preparing and collecting participant elections. The paying agent service also provides Form 1099-R and other year end filing automatically.
ESOP Administration Technology
Our proprietary software, ESOPConnection™, provides real time access to a secure online portal where both plan sponsors and participants can view account balances, transaction histories, and other essential information. This is a powerful tool that you can utilize to streamline administrative tasks, such as updating participant information and processing transactions.
“Blue Ridge ESOP is wonderful to work with. They are responsive and always answer questions fully. If they don't know the answer (which is rare), they know where to go to find out. I have been successful in my role managing the ESOP processes because of Blue Ridge!”
Partner with a single point of contact
At Blue Ridge, our people make all the difference. We pair you with a single point of contact as your go-to subject matter expert and trusted partner to ensure your success. Take advantage of the deepest level of industry knowledge, education and expertise. Your partner at Blue Ridge will always respond to your questions in a timely manner, meet deadlines, handle complex situations with ease, and deliver professional, error-free services. Sleep better at night knowing you can rely on Blue Ridge.
Ready to Experience Seamless ESOP Administration?
Learn more about how our third-party administration services can transform your ESOP management and deliver unparalleled value to your organization. Let’s work together to ensure your ESOP runs smoothly and effectively, paving the way for a successful future for both your company and your employees.