[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 5169 Introduced in House (IH)]
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119th CONGRESS
1st Session
H. R. 5169
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.
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IN THE HOUSE OF REPRESENTATIVES
September 8, 2025
Mr. Allen introduced the following bill; which was referred to the
Committee on Education and Workforce
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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.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Retire through Ownership Act''.
SEC. 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) 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) 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 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.''.
(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.
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