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Secretary Acosta Acknowledges Need for Clear Guidance

by Paul Pflieger | May 08, 2019
DOL Enforcement Actions Fewer Since 2013 due to "Much" Better Industry Compliance

The ESOP Association today welcomed Congressional testimony by U.S. Secretary of Labor Alexander Acosta acknowledging his "strong" support for Employee Stock Ownership Plans (ESOPs). Acosta also noted his view that ESOP companies have made real progress in legal compliance and that The Department of Labor (DOL) can do a better job at
providing guidance.

"We are grateful that Secretary of Labor Acosta and the Department of Labor have recognized the effort made by ESOPs and their supporting professionals to fully comply with the very complex laws surrounding ERISA and company valuation. We are thankful for and welcome the Secretary's posture to help establish clear guidelines," said ESOP Association President and CEO James Bonham. "There is clear evidence of the benefit ESOPs provide to employees. But the current absence of clear regulatory guidance from the Department of Labor is artificially constraining new ESOP formation. Without better guidance from DOL, the losers are the millions of hard working Americans who miss out on the opportunity to own part of the company where they work."

For more see our Press Release

See video of the testimony from Secretary Acosta here