Repurchase Obligation Funding Strategies

Tuesday, April 25, 2023

9:45 AM – 10:45 AM CST

Location: 2215 A

CE Hours 1

CE Type: CPE, SHRM, CLE

Speaker(s)

Will Heidbreder, J.D., MBA, CPA, CLU (he/him/his)
Business and Advanced Solutions Director
Principal Financial Group
Des Moines, IA, United States
Roland E. Burdett, III (he/him/his)
President & CEO
Miklos Systems, Inc.
Fairfax, VA, United States
Ronald Scheese, CPA (he/him/his)
President & CEO
Andesa Services, Inc.
Allentown, PA, United States

PDF Slides

Every ESOP will need to manage its repurchase obligation. There are several alternatives to fund repurchase obligations. There are unique considerations regarding life insurance (tax consequences and valuation consequences). This session will examine viewpoints and considerations for building your repurchase obligation management strategy with an emphasis on life insurance. The session will also include case studies on two companies at various stages of their ESOP journey. NCEO Resource:
The ESOP Repurchase Obligation Handbook

Learning Objectives:

Examine strategy alternatives to repurchase obligation funding management
Understand the basics of corporate-owned life insurance (COLI) and considerations when evaluating COLI products to meet financial obligations
Apply lessons learned from two case studies of how ESOP companies utilize COLI to reduce risk and manage repurchase obligations