Retire through Ownership Act

Hozzl · 2025-10-11T08:05:26Z

Explore the details of House Bill 5169 Retire through Ownership Act currently in Congress. Get insights into its purpose, current status, sponsors, and potential impact on Labor and Employment. Stay informed on legislative developments.

10/11/2025, 8:05 AM

Summary of Bill HR 5169

The bill titled "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" was introduced in the 119th Congress as H.R. 5169 on September 8, 2025.

Congressional Summary of HR 5169

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.

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Current Status of Bill HR 5169

Bill HR 5169 is currently in the status of Bill Introduced since September 8, 2025. Bill HR 5169 was introduced during Congress 119 and was introduced to the House on September 8, 2025. Bill HR 5169's most recent activity was Ordered to be Reported (Amended) by the Yeas and Nays: 35 - 0. as of September 17, 2025

Bipartisan Support of Bill HR 5169

Total Number of Sponsors

Democrat Sponsors

Republican Sponsors

Unaffiliated Sponsors

Total Number of Cosponsors

Democrat Cosponsors

Republican Cosponsors

Unaffiliated Cosponsors

Policy Area and Potential Impact of Bill HR 5169

Primary Policy Focus

Labor and Employment

Potential Impact Areas

- Employee benefits and pensions

- Financial services and investments

- Securities

Alternate Title(s) of Bill HR 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.