Bill · S. 1727· Senate(119-S-1727)
Employee Ownership Fairness Act of 2025
- Introduced
- 5/13/2025
- Last activity
- 5/13/2025 — Referred to the Committee on Health, Education, Labor, and Pensions.
- Sponsored by
- Bill Cassidy
- Cosponsors
- None
- Introduced
- In Committee
What this bill would do
The Employee Ownership Fairness Act of 2025 aims to amend the Employee Retirement Income Security Act of 1974. The bill focuses on helping employee stock ownership plan (ESOP) participants. It seeks to allow these workers to benefit from the full amount of ownership in their company while still saving for retirement in a defined contribution plan. Currently, success in a company can cause ESOP balances to exceed annual caps. This legislation changes how certain contributions are calculated to prevent these issues.
Yes· 3 of 7
Would people over 65 be better off under this?+5
The bill enables more effective diversification and contribution to retirement savings for workers.
Would retired people be better off under this?+5
By improving the ability to diversify and contribute to retirement plans, the bill enhances long-term financial security for retirees.
Would middle-income households be better off under this?+4
The bill allows employees to more fully realize the benefits of their defined contribution plans and retirement savings.
The opposite
No question was scored the opposite.
Who it would affect, and how
Potential Positive Impacts for People
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Improved Retirement Savings Diversification: The bill addresses how limits in the Internal Revenue Code can currently impede the ability of ESOP employees to diversify their retirement savings (Section 2, Finding 7).
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Increased Contribution Ability: By excluding employer stock contributions and loan repayments from certain calculations, the bill allows employees to make their own retirement savings contributions more effectively (Section 2, Finding 7; Section 3, Part (a)).
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Protection of Employer Matching: The changes may prevent employers from having to deny matching contributions that workers would otherwise receive due to current contribution limits (Section 2, Finding 7).
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Separation of Plan Limits: The bill ensures that the limitations of the Internal Revenue Code are applied separately to an ESOP and any other defined contribution plan of the employer (Section 3, Part (a) and (b)).
Potential Negative Impacts for People
- No negative impacts are explicitly stated in the provided text.
Groups and Interests Ranking
Every group the model scored this bill for, from -10 to +10. Hover a score for the reason it gave.
- Demographic And Interest Groups
- Good For Retirees+5Good For Seniors+5Good For Middle Class Households+4Good For Business Owners+3Good For Union Workers+2
- Economy And Finance
- Improves Small Business Support+4Improves Economic Growth+3
- 5/13/2025
- Referred to the Committee on Health, Education, Labor, and Pensions.
- Introduced in Senate
One bill Congress.gov lists as related to this one — companions in the other chamber, earlier versions, and bills this one absorbed or was folded into.