H.R. 2041: To modify the definition of fiduciary under the Employee Retirement Income Security Act of 1974 to exclude appraisers of employee stock ownership plans was introduced on May 17, 2013 by Rep. Brett Guthrie [R-KY2] and is currently co-sponsored by Jenkins, Lynn [R-KS2] and Loebsack, David [D-IA2].  It has been referred to the House Committee on Education and the Workforce.

Earlier this week we discussed how President Obama's 2014 Budget Eliminates ESOP 404(k) Dividends and the related comments from the ESOP Association.  I wanted to share the General Explanations of the Administration’s Fiscal Year 2014 Revenue Proposals (Greenbook) as it relates to President Obama's 2014 Budget Proposal to Eliminate the ESOP 404(k) Dividend Deduction:

ELIMINATE SECTION 404(k) EMPLOYEE STOCK OWNERSHIP PLAN (ESOP) DIVIDEND DEDUCTION FOR LARGE C CORPORATIONS

S. 742: The Promotion and Expansion of Private Employee Ownership Act of 2013 was introduced on April 16, 2013, by Sen. Benjamin Cardin [D-MD],and is currently co-sponsored by Blunt, Roy [R-MO], Klobuchar, Amy [D-MN], Landrieu, Mary [D-LA], Roberts, Pat [R-KS], Stabenow, Debbie [D-MI], and Thune, John [R-SD].  It has been referred to the Senate Finance committee.

Historically the financial reporting requirements for ESOP companies have been have been limited to the requirements of SOP 93-6.  FASB adopted ASU 2011-04 to develop common fair market value requirements in accordance with GAAP and IFRSs. 

Earlier today we discussed how President Obama's 2014 Budget Proposal Eliminates ESOP 404(k) Dividends for large C Corporations.  The ESOP Association Blog provides some further commentary on the proposed elimination of IRC Section 404(k) ESOP Deductible Dividends in President Obama's Budget for Fiscal Year 2014:

President Obama's Budget for Fiscal Year 2014 includes language to Eliminate section 404(k) ESOP dividend deduction for large C Corporations.  IRC Section 404(k) is the section in the Internal Revenue Code that provides the C Corporation provisions for paying Deductible Dividends to an ESOP. The budget includes the elimination of IRC Section 404(k) dividends as “Other revenue changes and loophole closer”:

An AICPA press briefing suggests that tax reform prospects are good, though probably not until next year.  Two veterans of the 1986 reform process compare the current environment to the environment in 1986:

Historically the financial reporting requirements for ESOP companies have been have been limited to the requirements of Statement of Position 93-6 Employers’ Accounting for Employee Stock Ownership Plans (SOP 93-6).  While the Financial Accounting Standards Board (FASB) explored additional reporting requirements in recent years those requirements have been shelved.  That could soon change...

S. 273: A bill to modify the definition of fiduciary under the Employee Retirement Income Security Act of 1974 to exclude appraisers of employee stock ownership plans was introduced on February 11, 2013, by Sen. Kelly Ayotte [R-NH] and is currently co-sponsored by Blunt, Roy [R-MO], Landrieu, Mary [D-LA], and McConnell, Mitch [R-KY].  It has been referred to the Senate Committee on Health, Education, Labor, and Pensions.

It has been a while so I thought I would provide an update on the Re-Propose DOL Regulation
to Change the Definition of Fiduciary.