[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 5887 Introduced in House (IH)]
<DOC>
119th CONGRESS
1st Session
H. R. 5887
To establish a universal personal savings program, and for other
purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
October 31, 2025
Mr. Peters (for himself and Mrs. Torres of California) introduced the
following bill; which was referred to the Committee on Ways and Means,
and in addition to the Committee on 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
_______________________________________________________________________
A BILL
To establish a universal personal savings program, 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 ``Saving for the Future Act''.
SEC. 2. FINDINGS.
Congress finds as follows:
(1) 3 out of 10 private-sector workers lack access to any
workplace retirement plan, according to a Bureau of Labor
Statistics report from a 2023 report.
(2) A retirement study conducted by the Government
Accountability Office found that 48 percent of households age
55 and older have no retirement savings in a defined
contribution plan or individual retirement account, and nearly
30 percent of households age 55 and older have no retirement
savings and no defined benefit plan.
(3) A 2022 report on the economic well-being of United
States households conducted by the Federal Reserve found that
28 percent of non-retirees reportedly did not have any
retirement savings, and that 60 percent of non-retirees with
self-directed retirement accounts expressed low levels of
confidence in their ability to make the right investment
decisions when investing in such accounts.
SEC. 3. UNIVERSAL PERSONAL SAVINGS.
(a) In General.--Subtitle B of title I of the Employee Retirement
Income Security Act of 1974 (29 U.S.C. 1021 et seq.) is amended by
adding at the end the following:
``PART 8--UNIVERSAL PERSONAL SAVINGS
``SEC. 801. DEFINITIONS.
``For purposes of this part:
``(1) Applicable employer.--The term `applicable employer'
means an employer--
``(A) with at least 10 full-time equivalent
employees; and
``(B) that has employed at least 10 full-time
equivalent employees for not less than 2 years.
``(2) Board.--The term `Board' means the Federal Universal
Personal Savings Investment Board established under section
803.
``(3) Employee.--The term `employee', unless specified
otherwise, includes full-time and part-time employees of an
applicable employer.
``(4) Executive director.--The term `Executive Director'
means the Executive Director of the UP Account Board appointed
under section 803.
``(5) Full time.--The term `full time', with respect to
employment, means 40 hours per week.
``(6) Full-time equivalent employee.--The term `full-time
equivalent employee' means the sum of--
``(A) the number of employees working full time;
and
``(B) the full-time equivalent of the number of
employees working part-time, as defined and calculated
in the manner determined most appropriate by the
Secretary.
``SEC. 802. EMPLOYER CONTRIBUTION REQUIREMENTS.
``(a) Minimum Employer Contribution.--
``(1) In general.--Beginning in the first full taxable year
following the date of enactment of the Saving for the Future
Act, each applicable employer shall contribute to a qualifying
plan, on behalf of each employee that is not enrolled in an
active, defined benefit pension plan sponsored by such
employer, the applicable minimum amount described in paragraph
(2).
``(2) Minimum employer contribution.--
``(A) Initial amounts.--For the first year in which
the requirements of paragraph (1) apply, and the 1 year
immediately following such first year, the minimum
amount an applicable employer is required to contribute
for each full-time employee is $0.50 per hour worked by
the employee.
``(B) Third and fourth years.--For the 2 years
immediately following the period during which
subparagraph (A) applies, the minimum amount an
applicable employer is required to contribute for each
full-time employee is $.60 per hour worked by the
employee.
``(C) Subsequent years.--The Secretary shall
increase the amounts described in subparagraph (B) for
the year immediately following the period during which
subparagraph (B) applies, and every 3 years thereafter,
by an amount proportional to growth in average
nonsupervisory wages.
``(3) Noncompliance.--In the case of an applicable employer
that is found to be in violation of the requirement under
paragraph (1), such employer shall be required to make the
contributions required under paragraph (1), plus interest, at
an interest rate set by the Secretary through rulemaking.
``(b) Qualifying Plans.--
``(1) In general.--Each applicable employer shall provide a
pension plan for all employees.
``(2) Types of plans.--The pension plan required under
paragraph (1)--
``(A)(i) in the case of an applicable employer with
100 or more full-time equivalent employees, shall be an
employer plan, which may be a plan described in section
401(k) of the Internal Revenue Code of 1986, defined
benefit pension plan, or any other plan described in
section 219(g)(5) of the Internal Revenue Code of 1986;
and
``(ii) in the case of an applicable employer with
fewer than 100 full-time equivalent employees, shall be
a plan described in subparagraph (A), a simple
retirement account under section 408(p) of the Internal
Revenue Code of 1986 or an automatic payroll deduction
individual retirement account or multiple employer
plan, including any current or prospective State-
established and-facilitated payroll deduction or
automatic individual retirement account, or an UP
Account described in section 804; or
``(B) in the case of an applicable employer who
does not provide an employer contribution but offers a
State-established or-facilitated program described in
subparagraph (A)(ii), such employer shall provide an UP
Retirement Account to which the employer makes
contributions, and any employee contributions shall be
directed to the State plan.
``(3) Clarification of employer obligations with respect to
certain employees.--In the case of an applicable employer that
offers a UP Retirement Account plan and any other type of plan
described in subparagraph (A)(i), (A)(ii), or (B), as
applicable, of paragraph (2), to employees, with respect to
employees for whom the employer is not required under this Act
to offer participation in such other type of plan, the
requirements of this part may be met by allowing such employees
to participate in such other plan.
``(c) Standard Notice.--The board shall develop a standard notice
that employers with fewer than 10 workers electing not to make
contributions are required to provide to each employee upon hire, and
annually thereafter. Such notice shall provide instructions on how to
set up an account, make contributions, and claim the individual credit
under section 25BB of the Internal Revenue Code of 1986.
``SEC. 803. UP ACCOUNT BOARD.
``(a) Establishment of Board.--There is established a Federal
Universal Personal Savings Investment Board, an independent government
agency for the purpose of overseeing UP Accounts.
``(b) Membership.--
``(1) Appointment of members.--The President shall appoint,
by and with the consent of the Senate, 5 members to serve on
the Board. Such members shall have substantial experience,
training, and expertise in the management of financial
investments and pension benefit plans.
``(2) Executive director.--The Board shall hire an
Executive Director of the Board.
``(3) Terms.--Each member shall serve a term of 5 years,
except that, of the members first appointed, one shall serve a
term of 1 year, one shall serve a term of 2 years, one shall
serve a term of 3 years, one shall serve a term of 4 years, and
one shall serve a term of 5 years. Each member of the Board may
serve up to 2 consecutive terms.
``(c) Funding.--Administrative expenses incurred to carry out this
part shall be paid first out net earnings in the UP Account Fund.
``SEC. 804. UP ACCOUNT FUND.
``(a) In General.--There is established in the Treasury of the
United States a UP Account Fund.
``(b) Funds.--The UP Account Fund shall consist of all amounts
contributed by participants, and employees on behalf of participants,
into UP Retirement Accounts and UP Savings Accounts, increased by the
total net earnings from investments of sums in the UP Account Fund or
reduced by the total net losses from investments of the UP Account
Fund, and reduced by the total amount of payments made from the UP
Account Fund (including payments for administrative expenses).
``(c) Permissible Uses of Funds.--The sums in the UP Account Fund
are appropriated and shall remain available without fiscal year
limitation--
``(1) to invest in accordance with section 805(h);
``(2) to pay benefits or purchase annuity contracts under
this subchapter; and
``(3) to pay administrative expenses.
``SEC. 805. UP RETIREMENT ACCOUNTS.
``(a) In General.--The Board shall establish UP Retirement Accounts
that are portable, defined contribution pension plans.
``(b) Rollovers.--
``(1) Definitions.--For purposes of this subsection--
``(A) the term `eligible rollover distribution' has
the meaning given such term by section 402(c)(4) of the
Internal Revenue Code of 1986; and
``(B) the term `qualified trust' has the meaning
given such term by section 402(c)(8) of the Internal
Revenue Code of 1986.
``(2) Rollovers.--A participant may contribute to the UP
Retirement Account an eligible rollover that a qualified trust
could accept under the Internal Revenue Code of 1986. A
contribution made under this subsection shall be made in the
form described in section 401(a)(31) of the Internal Revenue
Code of 1986. In the case of an eligible rollover distribution,
the maximum amount transferred to the UP Account Fund shall not
exceed the amount which would otherwise have been included in
the participant's gross income for Federal income tax purposes.
``(3) Regulations.--The Executive Director shall prescribe
regulations to carry out this subsection.
``(c) Administration.--The Board shall contract with one or more
private investment firms to administer the UP Accounts. The Board shall
contract with multiple private investment firms, as necessary to ensure
that no single firm administers more than $500,000,000,000 in UP
Account assets.
``(d) Individual Eligibility.--
``(1) In general.--An employee is eligible to participate
in a UP Retirement Account if--
``(A) the employee's employer establishes a UP
Retirement Account on the employee's behalf; or
``(B) the employee demonstrates to the Board that
the employee works for a employer that is not an
applicable employer.
``(2) Maintenance of account.--An individual who becomes a
participant in a UP Retirement Account as described in
paragraph (1) may maintain such account and may continue to
make individual contributions to such account, regardless of
such individual's subsequent employment status, provided that
the individual is not a participant in another plan described
in section 802(b)(2).
``(e) Quarterly Statements.--The Board shall provide participants
with a quarterly statement explaining each participant's projected
income in retirement under different distribution scenarios and
identifying the total dollar amount paid in fees for the year.
``(f) Employee and Employer Contributions.--
``(1) Employee contributions.--
``(A) In general.--Applicable employers making
contributions required under section 802 to a UP
Retirement Account shall auto-enroll all employees in
such an account with an employee contribution that is
equal to 4 percent of the employee's wages, with the
option for any such employee to elect a different
employee contribution level or to opt out of such
account at any time.
``(B) Auto-escalation.--Employees making
contributions to a UP Retirement Account shall have
their contributions automatically escalated by half a
percentage point at the conclusion of each full year
during which such employer is so enrolled, until
reaching the level of a 10 percent employee
contribution. Any employee may opt out of such
automatic escalation.
``(C) Default elections in the case of changes in
employment.--In the case of an employee who was
enrolled in a UP Retirement Account through one
employer and subsequently ceases to work for such
employer, if the employee subsequently is employed by
another applicable employer, the employee's default
contribution level under this paragraph shall be the
same level that it was on the last day of employment
with the previous employer.
``(2) Employer contributions.--
``(A) In general.--Applicable employers may
contribute more to an employee's UP Retirement Account
than is required under section 802, but may not
contribute more than \1/2\ the amount in effect under
section 402(g)(1)(B) of the Internal Revenue Code of
1986 for the taxable year.
``(B) Default rules.--Any employer matching
requirements under this part shall apply to any
employer contributions that are in addition to the
minimum employer contribution.
``(C) Fiduciary duties.--An applicable employer's
fiduciary duties with respect to an employee's UP
Retirement Account extend only to the full and timely
payment of contributions to their employees' UP
Retirement Accounts. For all other purposes, the
members of the Board are the fiduciaries of such
accounts.
``(g) Participant Accounts.--
``(1) In general.--The Executive Director shall establish
and maintain an account for each individual who makes
contributions or for whom contributions are made under this
section.
``(2) Balances.--The balance in a participant's account at
any time is the excess of--
``(A) the sum of--
``(i) all contributions made to the UP
Retirement Account by the participant;
``(ii) all contributions made to such
Account for the benefit of the participant; and
``(iii) the total amount of the allocations
made to and reductions made in the account
pursuant to paragraph (3), over
``(B) the amounts paid out of the UP Retirement
Account with respect to such participant.
``(3) Adjustments.--Pursuant to regulations prescribed by
the Executive Director, the Executive Director shall allocate
to each account an amount equal to a pro rata share of the net
earnings and net losses from each investment of sums in the UP
Account Fund attributable to sums credited to such account,
reduced by an appropriate share of the administrative expenses
paid out of the net earnings, as determined by the Executive
Director.
``(h) Investments.--The following investment rules shall apply with
respect to a UP Retirement Account:
``(1) The Board shall make available a reasonable menu of
investment products, including low-fee index funds, sufficient
to provide participants with the opportunity to diversify their
UP Retirement Accounts in order to minimize the risk of large
losses.
``(2) The default investment option for participants shall
minimize fees, be diversified, and automatically reduce risk to
the participant as the participant approaches retirement age.
``(3) UP Retirement Accounts shall allow participants to
change or customize investment allocation.
``(4) The board shall select investments solely in the
interests of participants and beneficiaries and for the
exclusive purpose of providing benefits and deferring
reasonable expenses with the prevailing care, skill, prudence,
and diligence that a prudent individual acting in a like
capacity and familiar with such matters would use.
``(i) Distributions.--
``(1) In general.--The Board shall ensure that investors
are offered forms of distribution that include--
``(A) monthly income for life for the participant
or surviving spouse, if applicable;
``(B) monthly income until the normal or maximum
Social Security retirement age for the participant or
surviving spouse, if applicable; and