Pensions for All Act
New Bill Would Require All U.S. Employers to Provide Federal-Level Pension Benefits to Workers
Legislative Progress
Key Points
- This bill would require every employer in the country to provide their workers with a retirement plan. The benefits must be at least as good as the ones federal government employees receive. If a company doesn't want to run its own plan, they must enroll their workers in the actual Federal Employees Retirement System.
- People who work for themselves, like freelancers and contractors, would also be required to have a retirement plan. They would have the choice to join the federal retirement system or use a private plan that offers the same level of high-quality benefits.
- To make this affordable for smaller operations, the government would help cover the costs. Businesses making less than $25 million a year and self-employed people earning less than $75,000 would receive significant discounts on their required contributions and special tax credits to help pay for the program.
- Workers would gain access to the Thrift Savings Plan, which is a professional investment account similar to a 401(k) currently used by government workers. This allows employees to save their own money for the future while their employers also add money to the account.
- The law would strictly forbid companies from cutting a worker's current pay to make up for the cost of providing these new retirement benefits. Employers who fail to provide a plan could be fined $10 per day for every worker they employ until they fix the problem.
Impact Analysis
Personal Impact
Life & Work
Every employer would be required to either provide a retirement plan with benefits comparable to the Federal Employees Retirement System (FERS) or enroll workers directly in FERS. Small businesses with revenue under $25 million get a 50% discount on employer contributions and a corresponding tax credit, which softens the blow. However, even with subsidies, this represents a significant new mandatory cost for businesses that currently offer no retirement plan or a less generous one. The bill also prohibits reducing worker pay to offset these costs, meaning employers must absorb the expense.
Programs
Milestones
Referred to the Committee on Ways and Means, and in addition to the Committees on Oversight and Government Reform, and Education and Workforce, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
Sent to a congressional committee for expert review. The committee decides whether this bill moves forward.
Introduced in House
The bill was officially filed and given a number. It now enters the legislative queue.
Votes
No votes have been recorded for this legislation yet.
Related News
4 articlesThe 401(k) Is Tearing Society Apart
The article examines the failure of the 401(k) system and highlights the Pensions for All Act as a potential solution. The bill would require corporations to offer traditional pensions equivalent to those received by members of Congress, shifting the risk from individuals back to employers.
Sanders plans bill to boost private-sector retirement plans
Senator Bernie Sanders is introducing the Pensions for All Act, which would require companies to offer retirement plans on par with the Federal Employees Retirement System (FERS). If companies refuse, they must contribute to the federal system to ensure workers receive equivalent benefits.
Bill would give all workers federal-level retirement benefits
The Pensions for All Act (S. 2335) would extend FERS-level pensions to the private sector. Employers would be mandated to offer a program with benefits equivalent to the federal system or allow employees to participate directly in FERS, aiming to reverse the decline of traditional pensions.
Source Information
Document Type
Congressional Bill
Official Title
Pensions for All Act
Data Sources
Sponsor
Cosponsors
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