What is an Employee Stock Ownership Program?

An Employee Stock Ownership Program (ESOP) is a retirement plan that enables eligible employees and W2 consultants to share in the growth and prosperity of TechProse at no extra cost.

Why did TechProse start an ESOP?

There are several reasons. These reasons include the fact that after 26 years of running TechProse, Meryl is ready to retire; however, she did not want to sell the company. The ESOP provides for her retirement over several years and creates a stock base that employees benefit from.

I’m a consultant. Do I benefit from the ESOP?

W2 consultants share directly in the value they create for TechProse.

How does an ESOP work?

Employees who meet certain, basic eligibility requirements have an account within the ESOP account. This criterion includes working 1,000 hours for TechProse in any calendar year after January 1, 2005. Each year, TechProse contributes to the ESOP, and the trustee will either buy stock directly for employees or make a payment on ESOP dept. Shares that are purchased are then added to participants accounts, either as a uniform percent of pay or as earnings on shares. On retirement, death, disability, or following other termination of service, employees are entitled to receive their vested shares or the cash value.

When am I eligible to collect my money?

Your benefits distribution is paid upon retirement. Retirement age is 65. For early retirees, retirement age is 55 or 10 years from your participation anniversary date, whichever comes later. At that time, your payout will depend on the current value of TechProse stock, the number of shares you hold, and the length of time in which the payout is made. Payout may extend over a period of years.

What if I have gaps between my contracts or employment with TechProse?

You are able to have one year gaps in employment for up to five consecutive years before your vested amount is forfeited, or returned to the pool.

I don’t plan to retire any time soon. How do I know this will really pay off for me?

As with any retirement plan, the idea is to look at the long term benefit. This is an investment you make in your future and it won’t cost you a dime. Focus on the things you can do to make your projects and relationships successful and you will add value to the ESOP retirement benefit.

As a Consultant, how do I affect the success of TechProse?

Your job performance and the relationships you cultivate contribute to our success. By developing quality deliverables, managing expenses, and contributing to our team, you affect the bottom line and add value to our engagements with clients.