U.S. Senator Bill Cassidy, M.D. (R-LA), who chairs the Senate Health, Education, Labor, and Pensions (HELP) Committee, has introduced two legislative proposals aimed at bolstering Employee Stock Ownership Plans (ESOPs). These plans allow employees to collectively hold stock in their company as part of their retirement benefits.
"ESOPs put more money in Americans’ pockets and lead to a more productive workforce," stated Dr. Cassidy. "By strengthening ESOPs, we strengthen workers and their ability to invest in their futures."
The first proposal, the Employee Ownership Representation Act, seeks to enhance representation for ESOPs by adding two new board members to the ERISA Advisory Council. This change would ensure that employee-owned companies have advocates on the council.
The second proposal, the Employee Ownership Fairness Act, aims to provide generous and diversified benefits by allowing ESOPs to contribute into 401(k) plans without surpassing contribution limits for either plan. This measure is designed to help employees save more for retirement while investing further in their employer's stock.
Both acts have received support from the ESOP Association.
For further information on these legislative efforts or other updates from HELP Republicans, interested parties can visit their website or follow them on Twitter at @GOPHELP.
