Press Releases

Today, Education and Workforce Committee Chairman Tim Walberg (R-MI) praised passage of  S. 2403, Retire through Ownership Act, legislation that delivers clear, consistent rules for valuing employee stock ownership plan (ESOP) stock—protecting workers’ retirement savings, reducing legal risk, and expanding opportunities for employee ownership. Rep. Rick Allen (R-GA), Chairman of the Health, Employment, Labor, and Pensions Subcommittee, authored the House companion to the Senate-passed legislation. 

“ESOPs provide employees with a meaningful foothold in capital ownership—allowing them to share in the success they’ve helped create. Unfortunately, lack of clarity in the law has brought uncertainty and created legal grey areas. S. 2403 fixes this problem by providing clear guidance,” said Chairman Walberg. “Employee ownership is a proven asset for workers, businesses, and our economy, and it should not be undermined by ambiguity in the law. I’m glad to see this critical legislation make it to the president’s desk—ending over fifty years of confusion and strengthening employee ownership.” 

“One of the many lessons I learned over my decades-long career as a small business owner is that true success is measured by the success of your employees. ESOPs are a valuable tool to build wealth for retirement and give employees an ownership stake in their employer. The Retire through Ownership Act will help eliminate the regulatory ambiguity and unnecessary risks these plans often face while providing a clear framework for valuing employer stock. I am proud that this bipartisan, bicameral bill is one step closer to the finish line as we continue to advance policies that ensure more Americans can enjoy a secure retirement,” said Rep. Allen, Chairman of the Subcommittee on Health, Employment, Labor, and Pensions. 

S. 2403, Retire through Ownership Act, the Senate bill authored by Sen. Roger Marshall (R-KS), with a House companion (H.R. 5169) authored by Rep. Allen:

• Clarifies Valuation Rules. Gives a clear legal definition of “adequate consideration” when employee stock ownership plans (ESOPs) purchase stock in closely held companies. 
• Adds Certainty for Fiduciaries. Allows ESOP fiduciaries to rely on independent appraisals that follow established IRS valuation guidelines, reducing legal gray areas. 
• Encourages Employee Ownership. Makes it easier for businesses to create and maintain ESOPs, helping more workers build retirement wealth through company ownership. 

Click here for Chairman Walberg's full Floor remarks.