Pensions for All Act

Bill Summary: Pensions for All Act (S. 2335)

Session: 119th Congress | Jurisdiction: United States | Introduced: July 17, 2025 | Sponsor: Bernie Sanders

Overview

The Pensions for All Act is a legislative proposal designed to ensure that every worker in the United States—including private-sector employees and the self-employed—has access to a comprehensive retirement plan. The bill mandates that employers either provide a retirement program with benefits equivalent to the Federal Employees Retirement System (FERS) or enroll their employees directly into FERS.

Key Provisions

1. Employer Mandates

The bill requires every employer to fulfill one of two options for their staff:
* Provide a "Covered Retirement Program": A private plan that the Secretary of Labor determines provides benefits comparable to those available under FERS.
* Enroll in FERS: Notify the Secretary of Labor that their employees will participate directly in the federal retirement system.

Self-employed individuals are subject to the same requirement: they must either maintain a comparable private plan or enroll themselves in FERS.

2. Integration with FERS

The bill extensively amends title 5 of the U.S. Code to expand FERS eligibility to non-federal employees. Key changes include:
* Contributions: Non-federal employers must deduct and withhold the same percentage of basic pay from employees as is required for federal employees.
* Employer Matching: Employers must contribute to the FERS fund and the Thrift Savings Plan (TSP).
* Sliding Scale for Small Entities: To ease the burden on smaller businesses, the bill provides a reduction in required contributions for employers with annual revenues under $100 million and self-employed individuals earning under $125,000.

3. Tax Incentives and Penalties

To encourage compliance and support small businesses:
* Tax Credit: A new "Credit for Small Employer and Self-Employed Pension Contributions" is established. Eligible taxpayers can receive a credit of up to 50% of their qualified pension contributions, though this percentage scales down as revenue or income increases.
* Non-Compliance Penalties: A tax of $10 per day, per employee is imposed on employers or self-employed individuals who fail to provide a covered retirement program or make required FERS contributions. This amount is adjusted for inflation after 2026.

4. Worker Protections

To prevent employers from offsetting the cost of these benefits by cutting wages, the bill explicitly prohibits the reduction of any form of compensation for employees hired on or before the date of enactment.

Who is Affected?

• Private Employers: All employers regardless of size, though small businesses receive phased-in contribution requirements and tax credits.
• Employees: All non-federal workers, who would gain access to a FERS-equivalent pension and the Thrift Savings Plan.
• Self-Employed Individuals: Independent workers and freelancers who would be required to secure a retirement plan.
• Federal Agencies: The Secretary of Labor and the Office of Personnel Management (OPM) would take on significant administrative oversight of private-sector retirement compliance.

Timeline and Procedural Status

• Introduced: July 17, 2025.
• Current Status: Referred to the Committee on Finance.
• Effective Date: Penalty provisions for failure to maintain a program would apply to plan years beginning after December 31, 2025.