On September 17, the House Education & the Workforce Committee favorably reported H.R.5169, a bill that allows a fiduciary to use publicly-available evaluation methods when valuing ESOP assets. The bipartisan vote was unanimous. The bill is now ready for a vote by the full House of Representatives.

H.R.5169 aims to clarify ambiguous guidance on how to value ESOP assets. It creates a safe harbor for fiduciaries that allows ESOP fiduciaries to rely on independent appraisals conducted by qualified professional appraisers who rely on IRS Revenue Ruling 59-60.

Prospects: The adequate valuation bill has also been approved—also unanimously on a bipartisan basis—by the Senate Health, Education, Labor and Pensions (HELP) Committee. Thus, the legislation has a good chance of being enacted into law, perhaps in a year-end government funding bill.

NAIFA Staff Contact: Jayne Fitzgerald – Director – Government Relations, at jfitzgerald@naifa.org