On May 13, Sen. Bill Cassidy (R-LA), chair of the Senate Health, Education, Labor and Pensions (HELP) Committee, which has jurisdiction over ERISA issues, introduced legislation, S.1727, that would allow ESOPs to contribute company shares to plan participants without having to include the value of the shares in the ESOP’s or the employee’s contribution limits.
In describing his bill, Sen. Cassidy said, “The Employee Ownership Fairness Act” authorizes ESOPs to provide generous and diversified benefits by permitting ESOPs to contribute into 401(k) plans without exceeding their ESOP or 401(k) contribution limits. As a result, employees will save more money for retirement and can invest more in their employer’s stock.”
Prospects: This bill could find its way into the next generation of retirement savings legislation. That “generation three” bill may emerge later this year or next year, Hill retirement savings staffers predict. Currently, the bill has no opposition, but it will trigger a revenue impact that could complicate whether it wins inclusion in a retirement savings bill.
NAIFA Staff Contact: Jayne Fitzgerald – Director – Government Relations, at jfitzgerald@naifa.org