American Benefits Council Urges 50% Expansion in Broad-Based Ownership

The American Benefits Council (ABC), an employee benefits organization primarily for larger employers, has set as a policy goal that by 2014 there will be "a 50% increase in the number of employees who receive stock in broad-based stock options plans, stock purchase plans, and employee restricted stock." The Council urged that accounting rules not be changed in a way that would make it less appealing for employers to adopt these plans and that tax policy should not require employees to pay tax on stock they acquire though a stock-based program until they receive cash from its sale. The gains should also be exempt from the Alternative Minimum Tax, and disqualifying dispositions on ESPPs and incentive options should not trigger payroll taxes. The Council would oppose rules, however, that would mandate how employers would add new restrictions on eligibility and allocation rules for the plans.

The recommendations are included in the Council's June 2004 report, "Safe and Sound: A Ten-Year Plan for Promoting Personal Financial Security."