US Department of Labor issues proposed rule for fiduciaries on valuing employer stock purchased, sold by Employee Stock Ownership Plans

On February 15, 2024, the US Department of Labor announced a proposed regulation for valuing employer stock acquired or sold by Employee Stock Ownership Plans. The proposal implements a Congressional directive in the SECURE 2.0 Act of 2022 and provides guidance on how to value employer stock, ensuring plan participants receive full value for employee compensation used on stock purchases and avoid overpayments that can risk their retirement benefits and livelihoods.