Retire through Ownership Act

The Retire through Ownership Act would amend the Employee Retirement Income Security Act (ERISA) to provide a clearer, safe harbor for what counts as adequate consideration when valuing closely held stock in employee stock ownership plans (ESOPs). Specifically, it allows a fiduciary of an ESOP to rely in good faith on a valuation from an independent valuation expert or business appraiser who uses the principles and methodologies from IRS Revenue Ruling 59-60 to determine the fair market value of the stock. The bill clarifies that this safe harbor does not broaden the Secretary of Labor’s regulatory authority beyond what existed before enactment, nor does it modify fiduciaries’ core duties under ERISA. It applies to determinations made on or after the date of enactment. In short, the bill aims to streamline and clarify how closely held stock can be valued for ESOP purposes, supporting retirement-through-ownership transactions while keeping existing fiduciary responsibilities intact.