Bill > S2403

This bill amends the Employee Retirement Income Security Act (ERISA) to provide clearer guidance for determining the fair market value of closely held stock in employee stock ownership plans (ESOPs). Specifically, the bill allows fiduciaries to rely on good faith valuations from independent experts who use valuation principles outlined in Internal Revenue Service Revenue Ruling 59-60. The bill ensures that such reliance does not expand the Secretary's regulatory authority beyond its current scope and does not modify existing fiduciary obligations. The new provisions permit fiduciaries to make valuation determinations with more confidence, helping to facilitate employee ownership by providing a more standardized approach to valuing privately held company stock. The amendments will apply to valuation determinations made on or after the date of enactment, giving ESOP administrators and fiduciaries a clear framework for assessing the fair market value of closely held stocks in retirement plans.

Health and Social Services

https://www.congress.gov/bill/119th-congress/senate-bill/2403/all-info