Employee Owned

Frequently Asked Questions:

As a new participant in the Employee Stock Ownership Plan you may have some questions. 

1. What is an Employee Stock Ownership Plan?
2. When can I participate in the ESOP?
3. Who makes contributions to the ESOP?
4. Who shares in company contributions?
5. Am I able to direct the investment of my ESOP account?
6. How do the vesting rules work?
7. Where can I download the beneficiary form?
8. What are the forfeitures?

1. What is an Employee Stock Ownership Plan?

An ESOP in a qualified retirement plan. Unlike other programs, the ESOP will invest primarily in the common stock of the company, and the purpose of the ESOP is to provide its eligible employees with an ownership interest in the company.

2. When can I participate in the ESOP?

If you were an employee of J&R Schugel Trucking, Inc. as of December 31, 2014 you became a participant in the ESOP as of January 1, 2014. If you did not enter the ESOP as of January 1, 2014, you will become a participant in the ESOP on the January 1 or July 1 that occurs after you work for the company for 1 year and have worked 1000 hours.  All eligible employees participate in the ESOP.

3. Who makes contributions to the ESOP?

The company makes all contributions to the ESOP. You are not required to contribute  to the ESOP in order to participate.

4. Who shares in company contributions?

Employees who have satisfied the eligibility requirements, and who have completed at least 1,000 hours of service during the year will receive a portion of the company’s contribution to the ESOP for that year, provided they are employed on December 31 of that year. In addition, if you die or retire after age 65 or become disabled during the year and while employed by the company, a contribution will also be made to your ESOP account.

5. Am I able to direct the investment of the ESOP account?

No. The ESOP will invest primarily in company stock, and other investments, if any, will be invested by the trustee.

6. How do the vesting rules work?

In order to promote longevity and reward loyalty, you will become vested in your account in the ESOP over a period of 6 years, as you continue your employment with the company, under the following schedule:

Years of Service:                                                Vested Percentage:
Less than 2 years                                                         0%         
2 years but less than 3 years                                      20%       
3 years but less than 4 years                                      40%       
4 years but less than 5 years                                      60%       
5 years but less than 6 years                                      80%       
6 years or more                                                          100%

Generally, you are credited with one year of service for each calendar your during which you complete at least 1,000 hours of service. However, if you terminate employment and were later rehired, your service before January 1, 2014 will be counted only from your most recent employment date.

7. Where can I download the beneficiary form? 

Click here to download Beneficiary Form

Mail to:
J&R Schugel Trucking, Inc.
Attn: Lynn Windschitl
2026 N. Broadway
New Ulm, MN 56073

8. What are the forfeitures?

Forfeitures are when a participant leaves prior to reaching their 6 years of service.

When an employee terminates their employment, they must wait till the valuation for the year that they terminate is done (that is usually done in July of the following year). After that time, if a former employee’s vested balance is under $5,000 then within the next few months, their balance will be paid out to them. There is a different pay out plan if the balance is over $5,000

For additional questions regarding ESOP please contact Lynn Windschitl ext. 1215. 

 

We are now an Employee Owned Company. View our presentation "Celebrate Good Times History in the Making"

 

View Our Video "ESOP 101"