Kaine Applauds Passage of Bill to Help Workers Share In Company Profits

WASHINGTON, D.C. – Today, U.S. Senator Tim Kaine (D-VA) released the following statement celebrating the passage of the Retire through Ownership Act , bipartisan legislation he introduced with Senator Roger Marshall (R-KS) to facilitate the establishment and operation of employee stock ownership plans (ESOPs), which allow workers to directly share in the profits they help their company earn, leading to higher wages and more wealth-building: “ESOPs help workers make more money, build their retirement, and feel a sense of ownership and connection toward their places of work. I am glad that this bipartisan legislation, which will help companies to establish new ESOPs and operate existing ones, has now passed both houses of Congress. I encourage the President to sign this bill into law.” Specifically, the legislation amends the Employee Retirement Security Act of 1974 (ERISA) to clarify that companies operating in good faith can use long-standing Internal Revenue Service (IRS) guidance on valuing shares to determine “adequate consideration” in an ESOP transaction, thus eliminating a source of uncertainty for companies establishing or operating ESOPs. ###