House Committee on Education & the Workforce discovered DOL secretly sharing confidential information with plaintiffs’ attorneys pursuing class action lawsuits against plan fiduciaries
Washington, DC – The ESOP Association today applauded House Committee on Education & the Workforce Chair Virginia Foxx for calling out potential abuse of authority at the Department of Labor (DOL) and its Employee Benefits Security Administration (EBSA) and calling for an investigation by the DOL’s Inspector General.
The ESOP Association
ESOP Association Resources
Oct. 25
The ESOP Association has been informed that a proposed rule from the U.S. Department of Labor regarding what is known as the “adequate consideration exemption” for ESOP transactions has been drafted and is being submitted to OMB imminently.
OMB is the agency that “oversees the implementation of the President’s vision across the Executive Branch.” This is the first step taken before a regulation can be made public for a notice and comment period.
OMB is the agency that “oversees the implementation of the President’s vision across the Executive Branch.” This is the first step taken before a regulation can be made public for a notice and comment period.
Aug. 02
The Senate Committee on Appropriations has passed several provisions that support employee ownership and ESOPs in the Fiscal 2025 Financial Services and General Government Appropriations bill. All three provisions were included in the Small Business Administration (SBA) portion of the Appropriations Committee report accompanying the bill text, which provides instruction and direction from Congress to Federal agencies about their budget, goals, and initiatives. The full Committee approved the funding package in a unanimous 27-0 vote.
Aug. 01
The Senate Committee on Appropriations has directed $2 million to fund the grant program of the Department of Labor’s Employee Ownership Initiative in the Fiscal 2025 Labor, Health and Human Services, Education, and Related Agencies Appropriations bill. The full Committee approved the funding package on a strongly bipartisan 25-3 vote.
Jul. 10
The House Committee on Appropriations recently released its report on proposed fiscal year 2025 funding for the Department of Labor, which included two very strong provisions affecting ESOPs.
With respect to ESOP company valuation and the adequate consideration exemption, the Committee noted that the DOL has neglected to provide critical regulatory guidance and asks the Department to prioritize formal rulemaking:
With respect to ESOP company valuation and the adequate consideration exemption, the Committee noted that the DOL has neglected to provide critical regulatory guidance and asks the Department to prioritize formal rulemaking:
Aug. 09
Notice to Taxpayers is Heavy on Innuendo, Light on Specifics
WASHINGTON, DC – The Internal Revenue Service today issued a statement suggesting a greater focus in the next year on S-Corp ESOPs and tax compliance, particularly for companies with a parent holding or management company structure and certain owner finance arrangements. While very short on specifics, the IRS communication appears to be driven by aggressive marketing of ESOP plans by some, although the IRS provides no specific examples of where an ESOP has been used in the manner they suggest.
WASHINGTON, DC – The Internal Revenue Service today issued a statement suggesting a greater focus in the next year on S-Corp ESOPs and tax compliance, particularly for companies with a parent holding or management company structure and certain owner finance arrangements. While very short on specifics, the IRS communication appears to be driven by aggressive marketing of ESOP plans by some, although the IRS provides no specific examples of where an ESOP has been used in the manner they suggest.
Jul. 31
On a very strong 24-2 bipartisan vote, the Senate Appropriations Committee has passed the Labor, Health and Human Services, Education and Related Agencies Appropriations Bill for the 2024 Fiscal Year that begins October 1. As one of 12 annual spending bills Congress must pass before the end of September, this is the initial step in funding the U.S. Department of Labor for the next year.
Jul. 11
Longstanding Priority of The ESOP Association Includes Creation of a New Division at DOL Specifically Tasked With Growing Employee Ownership in America
Jun. 01
U.S. Senators Bernie Sanders (I-VT) and Bill Cassidy (R-LA), the Chairman and Ranking Member of the Senate Health, Education, Labor, and Pensions (HELP) Committee, have sent a bipartisan letter to Acting Secretary of Labor Julie Su urging the Department of Labor to prioritize the WORK Act in its implementation of SECURE 2.0.
Apr. 14
DOL Commits to Provide Long-Sought Regulatory Clarity with Stakeholder Input on the Valuation of Company Shares to be Bought by an ESOP
Washington, D.C., April 14, 2023 – In a major victory for Employee Stock Ownership Plans (ESOPs), the U.S. Department of Labor has committed to move forward with a public notice and comment rulemaking on a key regulation the community has sought since ESOPs were first created in 1974. The regulation will clearly define Adequate Consideration under Section 408(e) of the Employee Retirement Income Security Act of 1974 (ERISA).
Washington, D.C., April 14, 2023 – In a major victory for Employee Stock Ownership Plans (ESOPs), the U.S. Department of Labor has committed to move forward with a public notice and comment rulemaking on a key regulation the community has sought since ESOPs were first created in 1974. The regulation will clearly define Adequate Consideration under Section 408(e) of the Employee Retirement Income Security Act of 1974 (ERISA).