Search for members, bills, votes, committees, hearings, and nominations
The Retire through Ownership Act, which passed the Senate unanimously in October 2025, is now being considered by the House of Representatives. The bill would amend federal pension law to provide a clear definition of how to determine fair market value for closely held company stock in employee stock ownership plans (ESOPs). Specifically, the legislation would allow ESOP plan fiduciaries to rely on good faith valuations from independent professional appraisers who use valuation principles outlined in IRS Revenue Ruling 59-60, a longstanding method for valuing private company stock.
For everyday citizens, this bill would primarily affect employees who participate in ESOPs, which are retirement plans where workers own shares of their employer company. The bill aims to reduce legal uncertainty and litigation risks that have made it difficult for companies to establish or maintain ESOPs. By providing a standardized approach to valuing company stock, the legislation would give ESOP trustees and administrators more confidence in their valuation decisions and potentially encourage more companies to offer employee ownership opportunities.
The bill does not expand the Department of Labor's regulatory authority beyond what it currently possesses, nor does it change existing fiduciary obligations. The amendments would apply to stock valuations made after the bill becomes law. Supporters argue this legislation removes unnecessary barriers to employee ownership, which they view as a way for workers to build retirement savings and gain a stake in their employer's success.
AI-generated summary
Congress
119th Congress
Introduced
Jul 23, 2025
No CBO cost estimate has been published for this bill.
Received in the House.
Oct 17, 2025
Held at the desk.
Oct 17, 2025
Received in the House.
Oct 17, 2025
Held at the desk.
Oct 17, 2025
