EMPLOYEE STOCK OWNERSHIP PLANS
Employee stock ownership plans (ESOPs) are tax-qualified retirement plans that invest primarily in the sponsoring company's stock. ESOPs offer employees retirement benefits and an ownership stake in the company for which they work.
ESOPs are defined contribution plans, which means, they are determined by the contributions to the plan and the earnings experience of those contributions. The contribution amount may be discretionary or specified and, in an ESOP, may be made in the form of cash or company stock. ESOPs are able to borrow money (which is unique among retirement plans), therefore they offer financing options to facilitate purchases from departing owners.
ESOP assets are held in a trust established specifically for the ESOP. These assets comprise contributions to the ESOP; assets, including employer stock purchased by the ESOP; and earnings or losses. All of the assets in an ESOP are allocated to individual accounts established for each participant. When participants retire or leave the company, they receive benefits equal to the value of the assets accumulated in their accounts.
GAGE BROTHERS ESOP
Gage Brothers ESOP started January 1, 2008. Purchase agreements were made with Tom Gage, Fred Gage and the Albert Gage estate for the purchasing of shares. Employees become eligible to participate upon satisfaction of the following requirements:
- Age 21 or older
- Completion of a year service with the company, working at least 1,000 hours during that year.
Once an employee has met the eligibility requirements, they will enter the ESOP at the next entrance date (January 1st or July 1st) following their one-year anniversary.
Gage Brothers is proud to be a member of the Minnesota/Dakotas Chapter of the ESOP Association
and The ESOP Association