[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[S. 2335 Introduced in Senate (IS)]
<DOC>
119th CONGRESS
1st Session
S. 2335
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.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
July 17, 2025
Mr. Sanders introduced the following bill; which was read twice and
referred to the Committee on Finance
_______________________________________________________________________
A BILL
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.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Pensions for All Act''.
SEC. 2. DEFINITIONS.
In this Act:
(1) Covered retirement program.--The term ``covered
retirement program'' means a retirement program other than FERS
that the Secretary determines provides benefits that are
comparable to the benefits available under FERS to an employee
(as that term is defined under section 8401 of title 5, United
States Code, on the day before the date of enactment of this
Act).
(2) Employee; employer.--The terms ``employer'' and
``employee'' have the meanings given such terms in section 3 of
the Employee Retirement Income Security Act of 1974 (29 U.S.C.
1002).
(3) FERS.--The term ``FERS'' means the Federal Employees
Retirement System under chapter 84 of title 5, United States
Code.
(4) Secretary.--The term ``Secretary'' means the Secretary
of Labor.
SEC. 3. REQUIREMENT TO PROVIDE A RETIREMENT PLAN EQUIVALENT TO FERS OR
TO PARTICIPATE IN FERS.
(a) Initial Coverage.--
(1) Employers.--Each employer shall--
(A) make available to each employee employed by the
employer a covered retirement program; or
(B) notify the Secretary that the employees of the
employer will participate in FERS.
(2) Self-employed enrollment.--Each self-employed
individual shall--
(A) be enrolled in a covered retirement program; or
(B) notify the Secretary that the self-employed
individual will participate in FERS.
(b) Subsequent Coverage Election.--
(1) Options for employers.--At a frequency determined by
the Secretary, in coordination with the Director of the Office
of Personnel Management, that is not less than annually, an
employer that has in effect a covered retirement program for
the employees of the employer or with respect to whom the
employees of the employer are participating in FERS may elect
to--
(A) in the case of an employer that has in effect a
covered retirement program--
(i) cease making contributions to the
covered retirement program for such employees;
and
(ii) have each employee employed by the
employer participate in FERS; or
(B) in the case of an employer with respect to whom
the employees of the employer are participating in
FERS--
(i) have the employees cease participating
in FERS; and
(ii) make available to each employee
employed by the employer a covered retirement
program.
(2) Options for self-employed individuals.--At a frequency
determined by the Secretary, in coordination with the Director
of the Office of Personnel Management, that is not less than
annually, a self-employed individual who is enrolled in a
covered retirement program or is participating in FERS may
elect to--
(A) in the case of a self-employed individual who
is enrolled in a covered retirement program--
(i) cease making contributions to the
covered retirement program; and
(ii) participate in FERS; or
(B) in the case of a self-employed individual who
is participating in FERS--
(i) cease participating in FERS; and
(ii) enroll in a covered retirement
program.
SEC. 4. PARTICIPATION OF NON-FEDERAL EMPLOYEES AND SELF-EMPLOYED
INDIVIDUALS IN FERS.
(a) Definitions.--Section 8401 of title 5, United States Code, is
amended--
(1) by striking paragraph (2) and inserting the following:
``(2) the term `basic pay'--
``(A) except as provided in subparagraph (B), has
the meaning given such term by section 8331(3); and
``(B) with respect to a covered self-employed
individual, means the annual income of the covered
self-employed individual that is attributable to the
activities of the individual as a covered self-employed
individual;'';
(2) in paragraph (11)--
(A) in subparagraph (B), by striking ``and'' at the
end;
(B) in subparagraph (C), by adding ``and'' at the
end;
(C) by inserting after subparagraph (C) the
following:
``(D) an individual who is--
``(i) an covered non-Federal employee; or
``(ii) a covered self-employed
individual;''; and
(D) in the matter following subparagraph (C), by
striking ``civilian service'' and inserting ``service
in a position described in subparagraph (A), (B), (C),
or (D)'';
(3) in paragraph (12), by striking ``civilian'';
(4) in paragraph (31), in the matter following subparagraph
(C), by striking ``civilian service'' and inserting ``service
as an employee or Member'';
(5) in paragraph (38)(B), by striking ``and'' at the end;
(6) in paragraph (39), by striking the period at the end
and inserting a semicolon; and
(7) by adding at the end the following:
``(40) the term `covered non-Federal employer' means an
employer that is not a department, agency, or other
instrumentality of the Federal Government and does not have in
effect for all employees of the employer a retirement plan that
the Secretary of Labor has determined provides benefits that
are comparable to the benefits provided under the retirement
program under this chapter;
``(41) the term `covered non-Federal employee' means an
individual employed by a covered non-Federal employer; and
``(42) the term `covered self-employed individual' means a
self-employed individual who is not enrolled in a retirement
plan other than the Federal Employees Retirement System that
the Secretary of Labor has determined provides benefits that
are comparable to the benefits provided under the retirement
program under this chapter.''.
(b) Eligibility for Annuity.--Section 8410 of title 5, United
States Code, is amended by striking ``civilian service'' and inserting
``service as an employee or a Member''.
(c) Creditable Service.--Section 8411(b) of title 5, United States
Code, is amended--
(1) in paragraph (1), by inserting ``subject to paragraphs
(7) and (8),'' before ``employment'';
(2) in paragraph (5), by striking ``and'' at the end;
(3) in paragraph (6), by striking the period at the end and
inserting a semicolon; and
(4) by inserting after paragraph (6) the following:
``(7) a period of service as a covered non-Federal employee
performed after the date of enactment of this paragraph; and
``(8) a period during which an individual is a covered
self-employed individual that occurs after the date of
enactment of this paragraph.'';
(d) Phased Retirement.--Section 8412a(c)(5)(A) of title 5, United
States Code, is amended by striking ``creditable civilian service'' and
inserting ``other service that is creditable under this chapter''.
(e) Employee Contributions.--Section 8422 of title 5, United States
Code, is amended--
(1) in subsection (a)--
(A) in paragraph (1), by striking ``The employing
agency'' and inserting ``Subject to paragraph (4), the
employing agency'';
(B) in paragraph (3), by striking ``civilian'' each
place it appears; and
(C) by adding at the end the following:
``(4)(A) A covered non-Federal employer shall deduct and withhold
from the basic pay of each covered non-Federal employee of the covered
non-Federal employer the percentage of basic pay that would be deducted
and withheld from basic pay if the covered non-Federal employee were an
employee of the Federal Government, as determined in accordance with
paragraphs (2) and (3).
``(B) For a covered self-employed individual, an amount equal to
the percentage of basic pay of the covered self-employed individual
that would be deducted and withheld from basic pay if the covered non-
Federal employee were an employee of the Federal Government, as
determined in accordance with paragraphs (2) and (3), shall be deemed
to be deducted and withheld from the basic pay of the covered self-
employed individual for purposes of subsection (c), and the covered
self-employed individual shall deposit such amount in the Treasury of
the United States in accordance with such subsection.''; and
(2) in subsection (e)(1)(B), by striking ``civilian'' each
place it appears.
(f) Employer Contributions.--Section 8423(a) of title 5, United
States Code, is amended--
(1) in paragraph (1), in the matter preceding subparagraph
(A), by inserting ``, and, subject to paragraph (4), each
covered non-Federal employer and each covered self-employed
individual,'' after ``section 8422(a)'';
(2) by redesignating paragraph (4) as paragraph (5); and
(3) by inserting after paragraph (3) the following:
``(4)(A) In this paragraph--
``(i) the term `additional employer percentage', with
respect to a covered non-Federal employer, means 50 percent of
the percentage obtained by dividing--
``(I) the amount of the annual revenue of the
covered non-Federal employer that is in excess of
$25,000,000; by
``(II) $75,000,000; and
``(ii) the term `additional self-employed percentage', with
respect to a covered self-employed individual, means 50 percent
of the percentage obtained by dividing--
``(I) the amount of the basic pay of the covered
self-employed individual that is in excess of $75,000;
by
``(II) $50,000.
``(B) Subject to subparagraphs (D) and (E), the amount contributed
to the Fund under paragraph (1) by a covered non-Federal employer shall
be reduced as follows:
``(i) For a covered non-Federal employer with annual
revenue of not more than $25,000,000, the amount required to be
contributed shall be the amount equal to 50 percent of the
otherwise applicable amount.
``(ii) For a covered non-Federal employer with annual
revenue of more than $25,000,000 and not more than
$100,000,000, the amount required to be contributed shall be
the sum of--
``(I) the amount equal to 50 percent of the
otherwise applicable amount; and
``(II) the amount equal to the additional employer
percentage of the otherwise applicable amount.
``(C) Subject to subparagraph (E), the amount contributed to the
Fund under paragraph (1) by a covered self-employed individual shall be
reduced as follows:
``(i) For a covered self-employed individual with basic pay
of not more than $75,000, the amount required to be contributed
shall be the amount equal to 50 percent of the otherwise
applicable amount.
``(ii) For a covered self-employed individual with basic
pay of more than $75,000 and not more than $125,000, the amount
required to be contributed shall be the sum of--
``(I) the amount equal to 50 percent of the
otherwise applicable amount; and
``(II) the amount equal to the additional self-
employed percentage of the otherwise applicable amount.
``(D) The amount of the reduction under subparagraph (B) with
respect to a covered non-Federal employer shall be reduced or
eliminated based on the proportion of highly compensated employees of
the covered non-Federal employer, in accordance with regulations
promulgated by the Secretary of Labor.
``(E)(i) A covered non-Federal employer may elect to have both the
reduction under subparagraph (B) of this paragraph and the reduction
under section 8432(c)(2)(B) not apply for any year.
``(ii) A covered self-employed individual may elect to have the
reduction under subparagraph (C) of this paragraph and the reduction
under section 8432(c)(2)(C) not apply for any year.''.
(g) Thrift Savings Plan.--
(1) Transfers treated as a separation.--Section 8431(a) of
title 5, United States Code, is amended by inserting ``or
employment at a covered non-Federal employer'' after
``Government employment''.
(2) Contributions.--Section 8432 of title 5, United States
Code, is amended--
(A) in subsection (a)--
(i) in paragraph (1), by striking ``An
employee or Member'' and inserting ``Subject to
paragraph (4), an employee or Member''; and
(ii) by adding at the end the following:
``(4) For a covered self-employed individual, the covered self-
employed individual may contribute to the Thrift Savings Fund in such
manner, and at such frequency, as the Secretary of Labor shall
establish.'';
(B) in subsection (c)--
(i) in paragraph (1)--
(I) in subparagraph (A), by
inserting ``and each covered non-
Federal employer'' after ``the
employing agency'';
(II) in subparagraph (C)(iii), by
striking ``civilian''; and
(III) by adding at the end the
following:
``(D)(i) A covered self-employed individual shall make
contributions to the Thrift Savings Fund for the benefit of the self-
employed individual in the same amount as would be contributed by a
covered non-Federal employer if the self-employed individual were an
employee of the covered non-Federal employer.
``(ii) The Secretary of Labor shall establish the manner and
frequency with which a covered self-employed individual shall make
contributions to the Thrift Savings Fund under this subparagraph.'';
(ii) in paragraph (2)--
(I) in subparagraph (A)--
(aa) by inserting ``, and,
subject to paragraph (4), each
covered non-Federal employer
and covered self-employed
individual,'' after ``the
employing agency''; and
(bb) by striking
``employing agency's
contribution'' and inserting
``contribution of the employing
agency, covered non-Federal
employer''; and
(II) in subparagraph (B), in the
matter preceding clause (i), by
inserting ``or, subject to paragraph
(4), covered non-Federal employer, or
covered self-employed individual''
after ``employing agency''; and
(iii) by adding at the end the following:
``(4)(A) In this paragraph--
``(i) the term `additional employer percentage', with
respect to a covered non-Federal employer, means 50 percent of
the percentage obtained by dividing--
``(I) the amount of the annual revenue of the
covered non-Federal employer that is in excess of
$25,000,000; by
``(II) $75,000,000; and
``(ii) the term `additional self-employed percentage', with
respect to a covered self-employed individual, means 50 percent
of the percentage obtained by dividing--
``(I) the amount of the basic pay of the covered
self-employed individual that is in excess of $75,000;
by
``(II) $50,000.
``(B) Subject to subparagraphs (D) and (E), the amount contributed
to the Thrift Savings Fund under paragraphs (1) and (2) by a covered
non-Federal employer shall be reduced as follows:
``(i) For a covered non-Federal employer with annual
revenue of not more than $25,000,000, the amount required to be
contributed shall be the amount equal to 50 percent of the
otherwise applicable amount.
``(ii) For a covered non-Federal employer with annual
revenue of more than $25,000,000 and not more than
$100,000,000, the amount required to be contributed shall be
the sum of--
``(I) the amount equal to 50 percent of the
otherwise applicable amount; and
``(II) the amount equal to the additional employer
percentage of the otherwise applicable amount.
``(C) Subject to subparagraph (E), the amount contributed to the
Thrift Savings Fund under parag