Posted: January 4, 2021
J&R Schugel is proud to be a 100% employee-owned company, but many people do not understand what an employee stock ownership program (ESOP) means to them or how it can be an important part of their future.
What is an ESOP?
An ESOP is a qualified retirement plan. The purpose of the ESOP is to provide the eligible employees with an ownership interest in the company.
Who makes the contributions to your ESOP account?
J&R Schugel makes all the contributions to your ESOP account. Employees do not contribute any funds towards the ESOP
How does an ESOP benefit you?
Employees participating in the ESOP enjoy the benefits of tax-deferred growth with no investment from the employee as it is all contributed by J&R Schugel on the employee’s behalf. If you drive or work five years at another company, you have just what you earned in that position. At J&R Schugel, you have what you earned plus a growing nest egg for your retirement at no cost.
How do you participate?
A new J&R Schugel employee who is over 18 years old becomes a participant as of January 1 or July 1 following 12 consecutive months of service from their hire date plus 1,000 hours worked.
How is the Stock share price determined?
An outside valuation company values the share price once a year based on audits of the company’s annual financial statements. For 2019, the average estimated value that eligible drivers earned in their ESOP was $0.082 per mile. Valuation numbers are not guaranteed and can vary based on many factors including share price, individual earnings, years of service etc.
Following is a chart, based on actual amounts eligible drivers received for 2019, showing the range for various years of service:
|Years of eligible service||High||Low||Average|
For more information on J&R’s ESOP program and many other advantages and benefits, connect with us today!