I applaud Congressman Todd Rokita (R-IN) for his recent strong support of ESOPs and his opposition to a new proposed regulation that would make ESOP valuators plan fiduciaries. Mr. Rokita has been vigilant about challenging the DOL’s assertion that there are many bad ESOP valuations out there. In response to Mr. Rokita’s question about how “many” is “many”, he received a response citing 6 court cases involving ESOP valuations over the past 20 years. He correctly pointed out that since that time, approximately 100,000 ESOP appraisals have been completed; therefore, 6 bad appraisals out of 100,000 is not a valid reason to enact this legislation!
It seems that the proposed DOL regulation to make ESOP valuators into plan fiduciaries is beginning to encounter more opposition. Again, I thank and applaud Congressman Rokita for asking the obvious questions, and hopefully more congressmen will begin to realize that the proposed regulation is bad for ESOPs and needs to be defeated!