S.1727

Employee Ownership Fairness Act of 2025 amends the Employee Retirement Income Security Act of 1974 to modify rules for employee stock ownership plans.

The Employee Ownership Fairness Act of 2025 amends the Employee Retirement Income Security Act of 1974 to modify rules for employee stock ownership plans (ESOPs). It exempts ESOPs from certain contribution limits and allows separate determination of limitations for ESOPs and other defined contribution plans. The bill also ensures that ESOP contributions do not include contributions of employer stock or loans used to acquire employer securities. These changes aim to help ESOP employees diversify their retirement savings and fully benefit from their ESOP ownership.