We own It!
We are not just employees, we are employee-owners. We are driven by our purpose to deliver safe and reliable transportation solutions. Guided by our core values, we care about our employees as much as we do about our customers. If you’re ready to step into a business culture where you matter, we want to hear from you.
Technically, an ESOP is a retirement plan, similar to a 401(k). However, unlike a 401(k):
You pay nothing for your shares; The company makes all the contributions to your ESOP account
Your account balance is tied to the share value of our company, not external securities
All shares are held in a Trust governed by an administrator, called a Trustee
What are the Benefits?
Every year, we contribute to your ESOP account. Your account grows from these annual contributions and from the reallocation of any forfeitures (the non- vested balances) of former employees.
The annual contribution is discretionary and is allocated to participants based on a formula which takes into account hours worked, years of service, and compensation.
How will you know what benefits you have earned under the ESOP?
The Account Statement will show the benefits you have earned and the value of those benefits.
The value of your benefits is determined once per year by an independent appraiser.
That value is what is used to determine the value of your shares.
How does the company’s performance affect your benefits?
The operating performance of KKW Trucking, Inc., as well as prospects for the future of the company, are factors used to determine the value of the stock owned by the ESOP. Your account value is impacted by changes in our stock value. As a result, the value of your account can go up or down.
Remember, we all play an important role in helping our company achieve success.
The better we do as a team, the more it benefits your ESOP account.
Payment of Benefits
When & how are benefits paid?
The ESOP benefits are for retirement, so you generally cannot be paid your benefit until after employment ends. Keep in mind that:
• You are only paid to the extent you are vested.
• Payment generally will not begin until the sixth (6th) year after employment ends and will generally be paid out in five (5) equal installments.
• The distribution rules are subject to change, and there are some exceptions to the 6th year rule, such as in the case of normal retirement at age 65, disability or death.
Are you able to keep your stock when you leave the company?
The company is intended to be owned by the current employees,
so once you leave, the company has the option (though NOT the requirement) to convert your ESOP account to a cash based investment.
For more information about the ESOP, please see the Summary Plan Description. In the event of a discrepancy between information provided herein and the Plan Document, the Plan Document shall prevail.
Thank you for being a part of our team of owners!
The share price is the dollar value of one share of our company’s stock.
One share of our stock represents a fractional ownership interest in our company. Your ESOP account holds your shares, which are a percentage of the total held by all of our owners.
Every year, our company gets a valuation from an independent appraiser. The valuation determines our new share price for the year. The new share price tells us how much our company is worth and it tells you the dollar value of your shares.
The better our company does, the higher our valuation and the higher the share price.
The independent appraiser calculates the “fair market value” of our company by comparing our business to similar companies that have sold recently. This calculation takes multiple factors into account:
As an employee-owned company, everyone at KKW Trucking earns a stake in our success. You build your ownership stake over time through annual allocations of company stock to your ESOP account.
Leadership determines the company’s contribution to the ESOP for the year. The size of the contribution will likely vary each year based on factors which might include:
- Our company’s profitability over the past year
- The size of the loan payment we owe for our ESOP
- The number of shares forfeited by employee-owners who have left before fully vesting
The company contribution is allocated to all eligible employee-owners based on salary.
- Specifically, each participant receives a share of the company contribution proportional to their eligible salary relative to the total eligible salary of all eligible employee-owners (ESOP participants).
- For example, if your salary is $40,000 and the total eligible salary of all employee-owners is $1,000,000, then your individual allocation would be 4% of the company contribution.
The contents and value of your ESOP allocation is reported to you on your Annual Statement.
- Your allocation will usually include shares of company stock, and might also include cash.
Your Roadmap to Retirement Wealth
