WASHINGTON – Today, U.S. Senator Bill Cassidy, M.D. (R-LA), chair of the Senate Health, Education, Labor, and Pensions (HELP) Committee, introduced two pieces of legislation to strengthen Employee Stock Ownership Plans (ESOPs); the Employee Ownership Representation Act and the Employee Ownership Fairness Act. ESOPs are employee retirement plans in which stock in the company is held collectively by the company’s employees and often supplements a 401(k).
“ESOPs put more money in Americans’ pockets and lead to a more productive workforce,” said Dr. Cassidy. “By strengthening ESOPs, we strengthen workers and their ability to invest in their futures.”
The Employee Ownership Representation Act would add two new ESOP board members to the ERISA Advisory Council. This would finally give ESOPs representation on the council to advocate for the interests of employee-owned companies.
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.
The Employee Ownership Fairness Act and the Employee Ownership Representation Act are supported by the ESOP Association.
Read the full Employee Ownership Fairness Act here.
Read the full Employee Ownership Representation Act here.
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