Senator Marshall Applauds House Passage of His Legislation to Strengthen Employee Ownership in America

Washington – U.S. Senator Roger Marshall, M.D. (R-Kansas), released the following statement after the U.S. House of Representatives passed his bipartisan legislation strengthening employee ownership in America. The Retire through Ownership Act provides legal and regulatory clarity, making the formation of new employee stock ownership plans (ESOPs) easier and the operation of current ESOPs less burdensome. “For 50 years, the ESOP community has been asking for clarity, and today, Congress delivered. This bill provides the certainty needed to protect and expand employee ownership across America,” said Senator Marshall. “ESOPs are one of the most powerful tools we have to promote stability, boost wages, and build real retirement security for working families. I’m proud to see this bipartisan legislation pass the House, and I look forward to seeing it become law.” This legislation passed the United States Senate earlier this year and is now heading to the President’s Desk for signature. Background: ESOP fiduciaries have long faced uncertainty and potential liability for 50 years due to the absence of a final “adequate consideration” regulation from the Department of Labor. The Retire Through Ownership Act amends the Employee Retirement Income Security Act of 1974 (ERISA) to provide clear guidance for companies when determining “adequate consideration” in an ESOP transaction. Specifically, it permits ESOP fiduciaries to rely on the methodology outlined in IRS Revenue Ruling 59-60 when determining the fair market value of closely held stock. Click here to read the full text of the legislation. ### Contact: Payton Fuller