This bill creates new retirement savings credits for small tax-exempt nonprofits (like community centers or charities) that start or maintain retirement plans. It allows these organizations to claim a credit equal to either their calculated credit amount or their payroll taxes paid during the year, whichever is smaller. The credit applies to both startup costs for new plans and auto-enrollment features, capping the credit at the employer's payroll tax liability. The bill takes effect for taxable years after December 2024, with offsetting funds transferred to Social Security Trust Funds to maintain existing revenue streams.
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.
The Pensions for All Act requires most employers and self-employed individuals to either participate in the Federal Employees Retirement System (FERS) or provide a retirement plan with benefits comparable to FERS. It amends FERS to include non-Federal employees and self-employed individuals, creating new definitions for "covered non-Federal employee" and "covered self-employed individual" to expand retirement coverage. The bill establishes a $10 per day tax for employers who fail to provide a retirement plan, with a $500,000 annual cap for unintentional failures, and prohibits employers from reducing compensation due to this requirement. It also creates a tax credit for small employers and self-employed individuals making qualifying pension contributions. This legislation would significantly expand retirement coverage to many workers outside of federal employment who previously lacked access to a retirement plan with benefits comparable to FERS.
This bill increases the annual contribution limit for certain retirement savings accounts from $2,500 to $5,000. It directly affects workers participating in defined contribution retirement plans (like 401(k)s) who meet basic eligibility requirements. The key change raises the maximum amount individuals can contribute annually to these accounts, with the new limit applying to taxable years starting after December 31, 2026. The bill also updates related definitions in retirement law to align with this increased limit.
S 1950, the Susan Muffley Act of 2025, requires the Pension Benefit Guaranty Corporation (PBGC) to recalculate guaranteed monthly pension benefits for participants and beneficiaries in six specific Delphi-related pension plans (including the Delphi Hourly-Rate Employees Pension Plan and Delphi Retirement Program for Salaried Employees). It mandates that benefits be calculated based on the "full vested plan benefit" amount - previously reduced under certain limits - rather than the prior calculation method. The PBGC must adjust future monthly payments and make lump-sum payments within 180 days to cover past underpayments, including 6% annual interest on each underpaid month. This directly affects current and future retirees in these terminated plans who received less than their full guaranteed benefit.
This bill exempts multiemployer pension plans from automatic enrollment requirements under the Internal Revenue Code. Specifically, it amends Section 414A(c)(3) to explicitly exclude multiemployer plans (defined under Section 414(f)) from rules requiring automatic enrollment in retirement plans. This change directly affects workers enrolled in union-sponsored multiemployer pension plans, allowing these plans to avoid automatic enrollment obligations. The amendment applies to taxable years beginning after December 31, 2024.
This bill creates tax credits for small tax-exempt nonprofits (like charities, schools, and religious organizations) to help them start or maintain retirement plans for their employees. It provides two specific credits: one for covering initial setup costs of a pension plan and another for automatically enrolling employees in retirement savings. The credits reduce the employer’s payroll tax liability, capped at the amount of payroll tax paid during the year. The changes apply to taxable years beginning after December 2024.
The Multiemployer Plan Relief Act (S 3615) amends the Internal Revenue Code to exempt multiemployer retirement plans from automatic enrollment requirements. This directly affects union-sponsored pension plans (common in industries like construction) by removing them from rules that require automatic enrollment in retirement savings plans for other employer-sponsored plans. The key provision updates Section 414A(c)(3) to explicitly exclude multiemployer plans from the definition of plans subject to automatic enrollment rules. The change takes effect for taxable years beginning after December 31, 2024.
This bill allows working people with disabilities who use ABLE accounts (tax-advantaged savings accounts for disability-related expenses) to redirect employer retirement contributions into their ABLE accounts instead of their employer's retirement plan. It amends retirement and ABLE tax rules to prevent these individuals from losing retirement benefits when making this choice, by treating employer contributions to ABLE accounts as if they were made to the retirement plan. The key mechanism requires retirement plans to offer this option universally to eligible employees and clarifies that such contributions won't violate retirement plan nondiscrimination rules. This change applies to retirement plan years starting after the bill's enactment, with immediate implementation for employer contribution rules.
This bill establishes a framework for automatic retirement savings plans, requiring most employers to automatically enroll employees in Individual Retirement Arrangements (IRAs) with the option to opt out. Employees would be automatically enrolled at 6% of their salary in the first year, increasing to 10% over time, with employers making contributions and providing default investment options. Employers who fail to implement these plans would face a $10 daily penalty per employee, though small businesses with fewer than 10 employees are exempt. The bill also creates a $500 annual tax credit for small employers to help offset implementation costs during the first three years of participation.
