Retire through Ownership Act
Sponsored By: Representative Allen
In Committee
Summary
Safe harbor for ESOP fiduciaries to rely on independent valuations. The bill would add a provision to ERISA letting a fiduciary in good faith rely on an independent valuation or business appraiser that follows IRS Revenue Ruling 59-60 when deciding whether closely held stock is "adequate consideration." It reorganizes the ERISA definition that governs these determinations, preserves the Secretary's authority to issue rules, and leaves fiduciary duties unchanged. The changes apply only to determinations made on or after enactment.
Show full summary
- Employees in ESOPs: May see more predictable treatment of company stock values when plans buy or value shares, which can affect plan holdings and distributions.
- ESOP fiduciaries: Gain an explicit safe harbor to rely on independent valuation experts using Rev. Rul. 59-60, reducing uncertainty when assessing adequate consideration.
- Closely held company owners and sellers: Face a clearer valuation standard in ESOP transactions, which could influence negotiation and sale terms.
- Regulators and plan overseers: Keep existing rulemaking authority and fiduciary obligations because the bill explicitly preserves those powers and duties.
Your PRIA Score
Personalized for You
How does this bill affect your finances?
Sign up for a PRIA Policy Scan to see your personalized alignment score for this bill and every other piece of legislation we track. We analyze your financial profile against policy provisions to show you exactly what matters to your wallet.
Bill Overview
Analyzed Economic Effects
1 provisions identified: 1 benefits, 0 costs, 0 mixed.
Safe harbor for ESOP valuations
If enacted, the bill would create a safe harbor for valuations used in employee stock ownership plan (ESOP) transactions. It would let ESOP fiduciaries rely in good faith on independent valuation experts or business appraisers. The expert would have to use the principles and methods in IRS Revenue Ruling 59-60. The safe harbor would apply only to valuations made on or after the date of enactment and would not change ERISA section 404 fiduciary duties or expand the Secretary's pre-enactment authority over the term "adequate consideration."
Free Policy Watch
You just read the policy. Now see what it costs you.
Pick a topic. PRIA runs your household against live legislation and sends you a free personalized readout.
Pick a topic to get started
Sponsors & CoSponsors
Sponsor
Allen
GA • R
Cosponsors
Edwards
NC • R
Sponsored 9/16/2025
Messmer
IN • R
Sponsored 9/18/2025
McBath
GA • D
Sponsored 10/10/2025
Rep. Baumgartner, Michael [R-WA-5]
WA • R
Sponsored 10/10/2025
Roll Call Votes
No roll call votes available for this bill.
View on Congress.govTake It Personal
Get Your Personalized Policy View
Take the PRIA Score to see how policy affects your household, then upgrade to PRIA Full Coverage for year-round monitoring.
Already have an account? Sign in