Advisory Opinion on Demutualization Proceeds

This document is about an advisory opinion from the U.S. Department of Labor regarding the proper disposition of a stock award received by an employer in connection with the conversion of an insurance company from a mutual to a stock company (demutualization). The opinion concludes that if the employer's retirement plan was properly terminated prior to the demutualization, the employer is entitled to retain the entire demutualization proceeds received as the named policyholder of the annuity contract, as there is no obligation under ERISA to treat the proceeds as plan assets.