PRIA Logo™
HR5169119th CongressWALLET

Retire through Ownership Act

Sponsored By: Representative Allen, Rick W. [R-GA-12]

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.

Personalized for You

How does this bill affect your finances?

Personalize government policy and PRIA will tell you what this bill means for your household, plus every other piece of legislation we track. PRIA reads each provision against your financial profile to show you exactly what matters to your wallet.

Free to download

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."

Sponsors & CoSponsors

Sponsor

Allen, Rick W. [R-GA-12]

GA • R

Cosponsors

  • Rep. Edwards, Chuck [R-NC-11]

    NC • R

    Sponsored 9/16/2025

  • Rep. Messmer, Mark B. [R-IN-8]

    IN • R

    Sponsored 9/18/2025

  • Rep. McBath, Lucy [D-GA-6]

    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.gov
Back to Legislation