S. 2403
Retire through Ownership Act
Sponsor: Roger Marshall
1 cosponsor
Official summary
Written by the Congressional Research Service.
Retire through Ownership Act
This bill allows the fiduciary of an Employee Stock Ownership Plan (ESOP) to rely on a valuation provided by an independent valuation expert or business appraiser in determining the fair market value of the plan's securities if the securities are not traded on a national securities exchange (i.e., not publicly traded) and the expert or appraiser follows specified methodologies.
In general, ESOPs are defined contribution pension plans where employees accrue shares of their employers' stock in individual accounts as part of their compensation. After separating from employment or retiring, employees receive the cash value of their shares.
Under the bill, an independent expert or appraiser must adhere to the methodology established under the Internal Revenue Service Ruling 59-60, which prescribes the factors a professional business appraiser should consider in forming a valuation of the stock for a closely held business.
Text of the bill
Where this section came from
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Jul 23, 2025 · Introduced in Senate Referred to Senate Committee on Health, Education, Labor, and Pensions, Jul 23
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Oct 9, 2025 · Engrossed in Senate
… 6 unchanged passages …
(B)
(i)
For purposes of clause (ii
) of subparagraph (A
), a fiduciary of an employee stock ownership plan
(
as defined in section 407(d)(6
)
))
may make a good faith reliance on
a valuation provided by an independent valuation expert or business appraiser that has relied upon
the principles and methodologies set forth in Internal Revenue Service Revenue Ruling 59–60 (as
in
amplified
effect
and
on
modified
the
by
date of enactment of
the
ERISA
Internal
Adequate
Revenue
Consideration
Service
Act
from
of
time
2025
to time
) in determining the fair market value of an asset described in such clause.
(ii) Clause (i) shall not be interpreted to— (I) preclude the Secretary from promulgating, in accordance with section 553 of title 5, United States Code, any regulation interpreting such clause; (II) expand the regulatory authority of the Secretary with respect to the term adequate consideration beyond such authority available to the Secretary on the day before the date of enactment of the Retire through Ownership Act; or (III) modify a fiduciary's obligations under section 404.
… 2 unchanged passages …
(a) In General. Section 3(18) of the Employee Retirement Income Security Act of 1974 (29 U.S.C. 1002(18)) is amended—
(1) by redesignating clauses (i) and (ii) as subclauses (I) and (II), respectively;
(2) by redesignating subparagraphs (A) and (B) as clauses (i) and (ii), respectively;
(3) by inserting (A) before The term; and
(4) by adding at the end the following:
(B)
(i) For purposes of clause (ii) of subparagraph (A), a fiduciary of an employee stock ownership plan (as defined in section 407(d)(6)) may make a good faith reliance on a valuation provided by an independent valuation expert or business appraiser that has relied upon the principles and methodologies set forth in Internal Revenue Service Revenue Ruling 59–60 (as amplified and modified by the Internal Revenue Service from time to time) in determining the fair market value of an asset described in such clause.
(ii) Clause (i) shall not be interpreted to—
(I) preclude the Secretary from promulgating, in accordance with section 553 of title 5, United States Code, any regulation interpreting such clause;
(II) expand the regulatory authority of the Secretary with respect to the term adequate consideration beyond such authority available to the Secretary on the day before the date of enactment of the Retire through Ownership Act; or
(III) modify a fiduciary's obligations under section 404.
(b) Effective Date. The amendments made by subsection (a) shall apply with respect to determinations described in section 3(18)(B) of the Employee Retirement Income Security Act of 1974 (29 U.S.C. 1002(18)(B)) (as added by such subsection) that are made on or after the date of enactment of this Act.