H.R. 5169 · Where this bill is now
Waiting for a House vote
Approved by committee Jan 14, 2026; no House vote yet
What this bill does
In plain words · AI-written from the official summarySimplifies valuation for employee stock ownership plans
ESOPs are retirement plans where employees build up shares of their company's stock as part of their pay. This bill lets ESOP managers use independent appraisals to figure out what non-publicly traded company shares are worth, as long as the appraiser follows established valuation methods. It removes some uncertainty about how much those shares are actually worth when employees retire or leave their jobs.
How it affects you
If you work for a company with an ESOP, this could make it clearer and fairer how much your shares are worth when you retire or separate from employment. The change mainly affects employees at private companies that use ESOPs as their retirement vehicle.
Read the official summary (Introduced in House, Sep 8, 2025)
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.
Written by AI (Claude) using only the official summary by the Congressional Research Service, the Library of Congress’s nonpartisan research staff. It can miss nuance, so check the official summary and the bill text for details.
1st SessionH. R. 5169
A BILL
Retire through Ownership Act
Sponsor: Rep. Rick W. Allen (R-GA-12) · Introduced Sep 8, 2025 · Labor and Employment · 2 versions of the text
Sources: Congress.gov actions and votes · bill text from GovInfo · latest official action Jan 14, 2026: “Placed on the Union Calendar, Calendar No. 383.”