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Bill Promotes Employee Ownership to Increase Retirement Savings

In a bid to expand availability of employee stock ownership plans (ESOPs) in S corporations and enhance retirement savings, Sen. Ben Cardin (D-MD) on May 6 introduced legislation that he hopes will accomplish both.

The Promotion and Expansion of Private Employee Ownership Act of 2015, S. 1212, would remove impediments to privately held businesses in establishing new ESOPs or expanding employee ownership in S corporations, reports Employee-Owned S Corporations of America. In a statement, Cardin expressed his belief that Americans deserve the chance to build secure savings for retirement and hailed ESOPS in S corporations as a reliable way for employees to save for retirement that is impervious to economic downturns.

S. 1212 has bipartisan support, with co-sponsors from both major parties. The bill is before the Senate Finance Committee.