Retire through Ownership Act
In progressRetire through Ownership Act This bill allows the fiduciary of an Employee Stock Ownership Plan (ESOP) to rely on a valuation provided by an independent valuation expert or business appraiser in determining the fair market value of the plan's securities if the securities are not traded on a national securities exchange (i.e., not publicly traded) and the expert or appraiser follows specified methodologies. In general, ESOPs are defined contribution pension plans where employees accrue shares of their employers' stock in individual accounts as part of their compensation. After separating from employment or retiring, employees receive the cash value of their shares. Under the bill, an independent expert or appraiser must adhere to the methodology established under the Internal Revenue Service Ruling 59-60, which prescribes the factors a professional business appraiser should consider in forming a valuation of the stock for a closely held business.
Sep 16, 2026Motion to reconsider laid on the table Agreed to without objection.
Passed
The bill amends the Employee Retirement Income Security Act of 1974 to clarify the definition of adequate consideration for closely held stock in employee stock ownership plans. It allows fiduciaries to rely on IRS Revenue Ruling 59-60 for determining fair market value. The bill aims to provide clearer guidelines for fiduciaries managing employee stock ownership plans.