New Law Provides Clarity on ESOP Valuations, SHRM

SHRM quoted of counsel Emily Rickard in a story examining the Retire Through Ownership Act, recently signed into law, which establishes new guidelines under the Employee Retirement Income Security Act of 1974 (ERISA) for employee stock ownership plan (ESOP) fiduciaries to use independent appraisals when assessing the value of employer stock.

Emily noted that “the Retire through Ownership Act helps clarify ERISA’s framework for valuing private company stock in ESOP transactions and may empower more private companies to offer ESOPs as part of their retirement platform.” She furthered that “employers should continue to monitor ESOP litigation and regulatory activity from the Department of Labor.”

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