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 provide protection for individuals in these plans.

Fiduciary

A person or organization that acts on behalf of another person or persons to manage assets. In the context of retirement plans, a fiduciary has a legal obligation to act in the best financial interest of the plan participants and beneficiaries.

Closely held stock

Shares of a company that is privately owned, meaning its stock is not publicly traded on a stock exchange. Ownership is usually concentrated among a small group of investors, family members, or managers.

Employee Stock Ownership Plan (ESOP)

A type of employee benefit plan that gives employees ownership interest in the company through shares of stock. It is a retirement plan that invests primarily in employer stock.

Adequate consideration

The fair market value of an asset, as determined in good faith by a trustee or independent appraiser, which must be paid when an ESOP buys or sells company stock. It ensures the transaction is fair to the retirement plan.

Fair market value

The price at which an asset would change hands between a willing buyer and a willing seller, neither being under any compulsion to buy or to sell and both having reasonable knowledge of relevant facts.