What This Bill Does · Plain English
Summary · Congress.gov
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 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 appraiser or expert 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.
Action Timeline
2026-01-14
Placed on the Union Calendar, Calendar No. 383.
2026-01-14
Reported (Amended) by the Committee on Education and Workforce. H. Rept. 119-448.
2026-01-14
Reported (Amended) by the Committee on Education and Workforce. H. Rept. 119-448.
2025-09-17
Ordered to be Reported (Amended) by the Yeas and Nays: 35 - 0.
2025-09-17
Committee Consideration and Mark-up Session Held
2025-09-08
Referred to the House Committee on Education and Workforce.
2025-09-08
Introduced in House
2025-09-08
Introduced in House
Frequently Asked Questions
Did HR.5169 pass?
HR.5169 is still alive. Current stage: REPORTED. Pass likelihood: pending.
What does HR.5169 do?
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 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 employme…
Who sponsored HR.5169?
HR.5169 was sponsored by Rick W. Allen (R-Georgia).
Full Bill Text
119 HR 5169 RH: Retire through Ownership Act U.S. House of Representatives 2026-01-14 text/xml EN Pursuant to Title 17 Section 105 of the United States Code, this file is not subject to copyright protection and is in the public domain. IB Union Calendar No. 383 119th CONGRESS 2d Session H. R. 5169 [Report No. 119–448] IN THE HOUSE OF REPRESENTATIVES September 8, 2025 Mr. Allen introduced the following bill; which was referred to the Committee on Education and Workforce January 14, 2026 Additional sponsors: Mr. Edwards , Mr. Messmer , Mrs. McBath , and Mr. Baumgartner January 14, 2026 Reported with an amendment, committed to the Committee of the Whole House on the State of the Union, and ordered to be printed Strike out all after the enacting clause and insert the part printed in italic For text of introduced bill, see copy of bill as introduced on September 8, 2025 A BILL To amend the Employee Retirement Income Security Act of 1974 to provide a clear definition of adequate consideration for certain closely held stock, and for other purposes. 1. Short title This Act may be cited as the Retire through Ownership Act . 2. Amending adequate consideration definition (a) In General Section 3(18) of the Employee Retirement Income Security Act of 1974 ( 29 U.S.C. 1002(18) ) is amended— (1) in subparagraph (A), 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 in good faith rely upon a valuation provided by an independent valuation expert or business appraiser if such expert or appraiser relied upon the principles and methodologies set forth in Internal Revenue Service Revenue Ruling 59-60 (as amplified, clarified, distinguished, or modified from time to time) in determining the fair market value of the asset. (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 the authority of the Secretary with respect to such term 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. January 14, 2026 Reported with an amendment, committed to the Committee of the Whole House on the State of the Union, and ordered to be printed
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