Summary
Through this article, we will demonstrate how the creation of private insurance coverage for ESOPs would help to eliminate, or at least reduce, the problem of the large downside risks associated with these quasi-retirement plans. In order to fully develop this assertion and the reasoning behind it, we will explore how ESOPs fit within ERISA. We will also discuss the benefits and risks associated with ESOPs and the protections (and lack of protections) available to ESOPs under ERISA.