U.S. Legislative Tracker
S 2403
Official Title: 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.
Introduced: 07/23/2025
Passed House: 09/16/2026
Passed Senate: 10/09/2025
To President:
Became Law:
Summary:
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 expert 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 expert or appraiser 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(s):
- 09/16/2026 - Motion to reconsider laid on the table Agreed to without objection.
- 09/16/2026 - On motion to suspend the rules and pass the bill Agreed to by the Yeas and Nays: (2/3 required): 401 - 14 (Roll no. 314).
- 09/16/2026 - Passed/agreed to in House: On motion to suspend the rules and pass the bill Agreed to by the Yeas and Nays: (2/3 required): 401 - 14 (Roll no. 314).
- 09/16/2026 - Considered as unfinished business.
- 09/16/2026 - At the conclusion of debate, the Yeas and Nays were demanded and ordered. Pursuant to the provisions of clause 8, rule XX, the Chair announced that further proceedings on the motion would be postponed.
- 09/16/2026 - DEBATE - The House proceeded with forty minutes of debate on S. 2403.
- 09/16/2026 - Considered under suspension of the rules.
- 09/16/2026 - Mr. Walberg moved to suspend the rules and pass the bill.
- 10/17/2025 - Held at the desk.
- 10/17/2025 - Received in the House.
- 10/16/2025 - Message on Senate action sent to the House.
- 10/09/2025 - Passed Senate with an amendment by Unanimous Consent. (consideration: CR S7103; text: CR S7103)
- 10/09/2025 - Passed/agreed to in Senate: Passed Senate with an amendment by Unanimous Consent.
- 09/11/2025 - Placed on Senate Legislative Calendar under General Orders. Calendar No. 158.
- 09/11/2025 - Committee on Health, Education, Labor, and Pensions. Reported by Senator Cassidy with an amendment in the nature of a substitute. Without written report.
- 07/30/2025 - Committee on Health, Education, Labor, and Pensions. Ordered to be reported with an amendment in the nature of a substitute favorably.
- 07/23/2025 - Read twice and referred to the Committee on Health, Education, Labor, and Pensions.
- 07/23/2025 - Introduced in Senate
