What does Preamble of HR 7556 do?

This bill, formally titled 'To require every employer to provide to their employees a retirement program with benefits equivalent to the Federal Employees Retirement System or to elect for their employees to participate in the Federal Employees Retirement System, and for other purposes,' aims to establish retirement program requirements for employers. The bill mandates that employers either provide retirement programs with benefits equivalent to the Federal Employees Retirement System or allow their employees to participate in the Federal Employees Retirement System. The bill was introduced in the House of Representatives on February 12, 2026, by Mrs. Ramirez and several co-sponsors.

What does SHORT TITLE. of HR 7556 do?

This bill is formally titled the Pensions for All Act.

What does DEFINITIONS. of HR 7556 do?

This section defines terms used within the Act. A 'covered retirement program' is a retirement program, excluding FERS, that the Secretary of Labor determines provides benefits comparable to those under FERS. The definitions of 'employee' and 'employer' are those found in section 3 of the Employee Retirement Income Security Act of 1974. “FERS” refers to the Federal Employees Retirement System. “Secretary” means the Secretary of Labor.

What does REQUIREMENT TO PROVIDE A RETIREMENT PLAN EQUIVALENT TO FERS OR of HR 7556 do?

This section establishes requirements for employers and self-employed individuals to provide retirement coverage. Employers must either offer a 'covered retirement program' to employees or ensure employee participation in the Federal Employees' Retirement System (FERS). Self-employed individuals must either enroll in a 'covered retirement program' or participate in FERS. Employers and self-employed individuals can elect to change between a 'covered retirement program' and FERS annually, as determined by the Secretary in coordination with the Director of the Office of Personnel Management. If an employer has a 'covered retirement program,' they can elect to have employees participate in FERS, or vice versa.

What does PARTICIPATION OF NON-FEDERAL EMPLOYEES AND SELF-EMPLOYED of HR 7556 do?

This section amends Title 5 of the United States Code, relating to the Federal Employees Retirement System (FERS). It expands FERS eligibility to include 'covered non-Federal employees' and 'covered self-employed individuals'. Definitions are added for 'covered non-Federal employer,' 'covered non-Federal employee,' and 'covered self-employed individual'. The amendments modify creditable service calculations to include service as a covered non-Federal employee or self-employed individual. Employer and employee contribution rules are adjusted to account for covered non-Federal employers and self-employed individuals. The Office of Personnel Management's authority is expanded to include covered non-Federal employers and self-employed individuals.

What does CREDIT FOR SMALL EMPLOYER AND SELF-EMPLOYED PENSION of HR 7556 do?

This section amends the Internal Revenue Code of 1986 to create a new section (36A) establishing a credit for small employers and self-employed individuals for pension contributions. The credit amount is equal to a percentage of qualified pension contributions, with the applicable percentage initially set at 50 percent. The applicable percentage is reduced based on an employer's gross receipts or a self-employed individual's income, but not below zero. Qualified pension contributions include contributions under specific sections of Title 5 of the United States Code, or contributions to covered retirement programs. Eligibility for the credit depends on whether the taxpayer is a covered non-Federal employer or self-employed individual and whether they have made specific elections under Title 5. The credit for employers is treated as part of the general business credit. The law prevents taxpayers from taking both a deduction or credit and the new pension credit for the same contributions. The amendments apply to contributions made after the enactment of this Act.

What does FAILURE TO PROVIDE COVERED RETIREMENT PROGRAM. of HR 7556 do?

This section amends Chapter 43 of the Internal Revenue Code of 1986 by adding a new section, 4980J, regarding failure to maintain a required retirement program. Employers are subject to a tax if they fail to make a covered retirement program available to all employees or fail to make required contributions. Self-employed individuals are subject to a tax if they fail to participate in a covered retirement program or fail to make required contributions. The tax imposed is $10 per day of noncompliance, adjusted for inflation beginning in 2026. The 'noncompliance period' begins when the failure occurs and ends when it's corrected or three months after the last date of employment. The tax is not imposed if the failure was not discovered despite exercising reasonable diligence. For unintentional failures due to reasonable cause, the tax is limited to $500,000 per taxable year. The Secretary may waive part or all of the tax in cases of reasonable cause. Employers are liable for the tax, and aggregated employers are jointly and severally liable. Terms used in this section are defined by the Pensions for All Act, section 2.

What does PROHIBITION ON THE REDUCTION OF COMPENSATION. of HR 7556 do?

This section prohibits employers from reducing employee compensation due to requirements imposed by the Act. The prohibition applies to employees employed on or before the enactment date of the Act.

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Pensions for All Act — HR. 7556

Last updated: 2/12/2026 · Introduced: 2/12/2026

Author: Delia Ramirez (D-IL)

TL;DR (AI)

Employers must offer a retirement program comparable to the Federal Employees Retirement System (FERS) or allow employees to participate in FERS.
Self-employed individuals must either enroll in a comparable retirement program or participate in FERS.
FERS eligibility is expanded to include non-Federal employees and self-employed individuals.
Small employers and self-employed individuals are eligible for a tax credit to offset pension contributions.
Employers and self-employed individuals face a daily tax penalty for failing to provide or participate in a covered retirement program.

119th Congressin committeeS. 2335(In Committee)Official page

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Includes provisions on preamble, short title., and 6 more.

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