ESOP Distribution Question

[naturenut]

What is the name of your state (only U.S. law)? Minnesota

I was laid off in September, 2009 and applied for distribution of my ESOP funds at that time. In January, I received a letter from the trustee for our funds asking that I fill out a different form to request distribution. Two weeks ago I received a letter from my former employer saying they hope to fund my distribution in September, 2010. They also enclosed a copy of the new ESOP plan which now states that they can pay out your funds in cash or 5-year promissary notes (at their discretion). The old plan did not state they would pay out the funds in payments over a period of years. I am 64 years old and need the funds for living expenses. Am I grandfathered in--in other words can I get payment of the entire $15,000 now or am I required to go by the rules of the newly revised plan (revised in April, but backdated to January)?

 

[cbg]

For this kind of plan there is no such thing as grandfathering unless it is specifically written into the plan, which is rare indeed. Without such a specification, all employees, past and present, are bound by the plan as it currently exists, regardless of what it might have said previously.

Not your question, but if the plan document has been revised, there was undoubtedly a blackout period when no changes or distributions could be made, and your initial request fell during that time.