An AI model extracted this from the bill’s official record and can make mistakes. Check the official text ↗ (opens in new tab)

Employee Retirement Income Security Act of 1974 (ERISA)

A federal law that sets minimum standards for most voluntarily established retirement and health plans in private industry to protect individuals in these plans.

Fiduciary

A person or organization with a legal and ethical obligation to act on behalf of another person or persons to manage assets, always putting the interests of the beneficiaries first.

Employee Stock Ownership Plan (ESOP)

A type of employee benefit plan that invests primarily in employer stock, giving employees an ownership interest in the company they work for and a way to save for retirement.

Closely Held Stock

Stock of a company that is not publicly traded on a stock exchange and typically has a limited number of shareholders, making its valuation more complex.

Adequate Consideration

The fair market value of an asset, determined in good faith by a fiduciary, which is required for transactions involving employee benefit plans to ensure fairness and prevent conflicts of interest.

IRS Revenue Ruling 59-60

A well-known set of guidelines issued by the Internal Revenue Service (IRS) outlining factors to consider when valuing shares of closely held corporations, commonly used for various valuation purposes.