What does Preamble of S 2335 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. Employers would be required to provide retirement programs with benefits equivalent to the Federal Employees Retirement System. Alternatively, employers could elect to have their employees participate in the Federal Employees Retirement System.

What does SHORT TITLE. of S 2335 do?

This bill is formally titled the Pensions for All Act.

What does DEFINITIONS. of S 2335 do?

This section defines terms used throughout 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” refers to the Secretary of Labor.

What does REQUIREMENT TO PROVIDE A RETIREMENT PLAN EQUIVALENT TO FERS OR of S 2335 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. Conversely, if employees are participating in FERS, the employer can elect to make a covered retirement program available.

What does PARTICIPATION OF NON-FEDERAL EMPLOYEES AND SELF-EMPLOYED of S 2335 do?

This section amends Title 5 of the United States Code, relating to the Federal Employees Retirement System (FERS). It defines new terms including 'covered non-Federal employer,' 'covered non-Federal employee,' and 'covered self-employed individual.' Eligibility for annuity is extended to include service as an employee or a Member. Creditable service now includes periods of service as a covered non-Federal employee or as a covered self-employed individual after a specific enactment date. Employee contributions are adjusted to apply to covered non-Federal employers and self-employed individuals, with specific deduction and withholding rules. Employer contributions are modified to include covered non-Federal employers and self-employed individuals, with a tiered contribution system based on revenue and income. Various sections related to military service, international organizations, disability retirement, and reemployment are amended to include covered non-Federal employers and self-employed individuals.

What does CREDIT FOR SMALL EMPLOYER AND SELF-EMPLOYED PENSION of S 2335 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 ranging from 0 to 50 percent. The applicable percentage is reduced based on gross receipts for employers and income for self-employed individuals, with higher income/receipts resulting in a lower credit percentage. Qualified pension contributions include contributions under specific sections of Title 5 of the United States Code and contributions to covered retirement programs. Eligibility for the credit is defined based 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 claiming both a deduction or credit and the credit under section 36A for the same pension contributions. The amendments apply to contributions made after the date of enactment of this Act.

What does FAILURE TO PROVIDE COVERED RETIREMENT PROGRAM. of S 2335 do?

This section amends Chapter 43 of the Internal Revenue Code of 1986 by adding a new section, 4980J, addressing 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 after 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 annually. The employer is 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, if applicable.

What does PROHIBITION ON THE REDUCTION OF COMPENSATION. of S 2335 do?

This section prohibits employers from reducing employee compensation due to enrollment in a covered retirement program or FERS. The prohibition applies to employees employed on or before the enactment date of this Act.

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Pensions for All Act — S. 2335

Last updated: 7/17/2025 · Introduced: 7/17/2025

Author: Bernie Sanders (I-VT)

TL;DR (AI)

This bill mandates that employers provide retirement programs comparable to the Federal Employees Retirement System (FERS) or allow employees to participate directly in FERS.
Self-employed individuals must also enroll in a comparable retirement program or participate in FERS.
Small employers and self-employed individuals are eligible for a tax credit to offset pension contributions, with the credit amount adjusted based on income or gross receipts.
Employers and self-employed individuals face a daily tax penalty for failing to provide or participate in a covered retirement program or make required contributions.
Employers are prohibited from reducing employee compensation due to enrollment in a covered retirement program or FERS.

119th Congressin committeeHR. 7556(In Committee)Official page

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

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