Strengthening Benefit Plans Act of 2025

This bill allows employers with pension plans to transfer surplus health funds from retiree health accounts to support active employee benefits. Specifically, it permits pension plans to move "excess health assets" (defined as funds exceeding 125% of retiree benefit liabilities) to active employee plans without triggering tax penalties or violating pension rules. Employers must follow strict annual transfer limits and ensure active employee benefits aren't reduced for five years after the transfer. The law also enables transferring surplus assets from defined benefit pension plans to defined contribution plans under similar safeguards.