July 17, 2025
Mr. Sanders introduced the following bill; which was read twice and referred to the Committee on Finance
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.
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 paragraphs (1) and (2) 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 8423(a)(4)(B) not apply for any year.
(ii)
A covered self-employed individual may elect to have the reduction under subparagraph (C) of this subparagraph and the reduction under section 8423(a)(4)(C) not apply for any year.
(5)
(A)
The Secretary of Labor shall, at the frequency determined appropriate by the Secretary, compute the amount of the reduction in contributions by—
(i)
a covered non-Federal employer under paragraph (4) with respect to each covered non-Federal employee of the covered non-Federal employer; and
(ii)
a covered self-employed individual under paragraph (4) with respect to the covered self-employed individual.
(B)
The Secretary of the Treasury shall, in such installments as the Secretary determines appropriate, credit to the Thrift Savings Fund—
(i)
for the benefit of each covered non-Federal employee for whom the contributions by the covered non-Federal employer employing the covered non-Federal employee are reduced under paragraph (4) an amount equal to the amount of the reduction; and
(ii)
for the benefit of each covered self-employed individual for whom the contributions by the covered self-employed individual are reduced under paragraph (4) an amount equal to the amount of the reduction.;
(C)
in subsection (e)—
(i)
by inserting (1)
before The sums required
; and
(ii)
by adding at the end the following:
(2)
The sums required to be contributed to the Thrift Savings Fund by a covered non-Federal employer or covered self-employed individual under subsection (c) for the benefit of a covered non-Federal employee or covered self-employed individual, respectively, shall be paid by the covered non-Federal employer or covered self-employed individual, respectively, in accordance with such procedures as the Secretary of the Treasury may, in consultation with the Executive Director, prescribe in regulations.;
(D)
in subsection (g)—
(i)
by inserting or employment at a covered non-Federal employer
after Government employment
each place it appears;
(ii)
by striking civilian service
each place it appears and inserting creditable service as an employee or Member
; and
(iii)
in paragraph (5), by inserting or by a covered non-Federal employer
after the Government
; and
(E)
in subsection (i)(1)(B), by striking civilian service
and inserting service as an employee
.
(3) Payment of lost earnings
Section 8432a of title 5, United States Code, is amended—
(A)
by inserting or covered non-Federal employer
after employing agency
each place it appears, except the second place it appears in subsection (c);
(B)
in subsection (a)—
(i)
in paragraph (1), by inserting or covered non-Federal employer
after such agency
; and
(ii)
in paragraph (2)—
(I)
in the matter preceding subparagraph (A), by striking an employing agency’s failure
and inserting a failure by an employing agency or covered non-Federal employer
; and
(II)
in subparagraph (A), by inserting or covered non-Federal employer
after the agency
;
(C)
in subsection (b)(3), by inserting , respectively,
before errors
; and
(D)
in subsection (c), in the first sentence, by inserting or paid by the covered non-Federal employer in accordance with such procedures as the Secretary of the Treasury may, in consultation with the Executive Director, prescribe in regulations
after establishment
.
(4) Contributions of persons who perform military service
Section 8432b of title 5, United States Code, is amended—
(A)
by inserting or covered non-Federal employer
after employing agency
each place it appears;
(B)
in subsection (g)(1), by inserting or covered non-Federal employer
after the agency
; and
(C)
in subsection (h)(1), by striking civilian service
each place it appears and inserting service as an employee
.
(5) Contributions of certain persons reemployed after service with international organizations
Section 8432c of title 5, United States Code, is amended—
(A)
in subsection (c), by inserting or covered non-Federal employer
after the agency
; and
(B)
in subsection (e), by striking civilian
.
(6) Benefits and election of benefits
Section 8433 of title 5, United States Code, is amended—
(A)
by striking Government employment
each place it appears and inserting service that is creditable under this chapter
; and
(B)
in subsection (c)(1), by striking Government service
and inserting service that is creditable under this chapter
.
(h) Rights of a widow or widower
Section 8442(b)(1) of title 5, United States Code, is amended, in the matter preceding subparagraph (A), by striking civilian service
and inserting service as an employee
.
(i) Rights of a child
Section 8443(a)(1) of title 5, United States Code, is amended, in the matter preceding subparagraph (A), by striking civilian service
and inserting service as an employee
.
(j) Disability retirement
Section 8451(a) of title 5, United States Code, is amended—
(1)
by striking employee’s agency
each place it appears and inserting agency or covered non-Federal employer employing the employee
; and
(2)
in paragraph (1)(A), by striking civilian service
and inserting service as an employee
.
(k) Recovery; restoration of earning capacity
Section 8455(a)(1) of title 5, United States Code, is amended by inserting or a covered non-Federal employer or on becoming a covered self-employed individual
after reemployment by the Government
.
(l) Authority of the office of personnel management
Section 8461(h)(1) of title 5, United States Code, is amended by inserting , covered non-Federal employer, and covered self-employed individual
after Each Government agency
.
(m) Annuities and pay on reemployment
Section 8468 of title 5, United States Code, is amended by adding at the end the following:
(k)
This section shall not apply to an individual serving in a position as a covered non-Federal employee or who is a covered self-employed individual.
Sec. 5. Credit for small employer and self-employed pension contributions
(a) In general
Subpart C of part IV of subchapter A of chapter 1 of the Internal Revenue Code of 1986 is amended by inserting after section 36 the following new section:
36A. Credit for small employer and self-employed pension contributions
(a) In general
In the case of an eligible taxpayer, there shall be allowed as a credit against the tax imposed by subtitle A an amount equal to the contribution assistance amount with respect to such taxpayer for the taxable year.
(b) Contribution assistance amount
In the case of an eligible taxpayer, for purposes of this section—
(1) In general
The contribution assistance amount is an amount equal to the applicable percentage of the qualified pension contributions paid by the eligible taxpayer during the taxable year.
(2) Applicable percentage
For purposes of paragraph (1), the applicable percentage is 50 percent, reduced (but not below zero) by the number of percentage points which—
(A)
in the case of an employer, bears the same ratio to 50 as the excess of—
(i)
the gross receipts of the employer for the taxable year, over
(ii)
$25,000,000, bears to
$75,000,000, and
(B)
in the case of a self-employed individual, bears the same ratio to 50 as the excess of—
(i)
the income of the individual for the taxable year, over
(ii)
$75,000, bears to
$50,000.
(3) Qualified pension contributions
The term qualified pension contributions means—
(A)
in the case of a covered non-Federal employer or covered self-employed individual, the contributions made by such employer or individual under sections 8423(a) and 8432(c) of title 5, United States Code,
(B)
in the case of any other employer, the nonelective contributions made by such employer to a covered retirement program (as defined in section 2 of the Pensions for All Act) on behalf of the employees of the employer, and
(C)
in the case of any other self-employed individual, the contributions made by such individual to a covered retirement program (as so defined) of the individual.
(c) Eligible taxpayers, etc
For purposes of this section—
(1) In general
The term eligible taxpayer means—
(A)
any covered non-Federal employer making an election under both sections 8423(a)(4)(E)(i) and 8432(c)(4)(E)(i) of title 5, United States Code not to receive a reduction in employer contributions,
(B)
any employer which is not a covered non-Federal employer,
(C)
any covered self-employed individual making an election under both sections 8423(a)(4)(E)(ii) and 8432(c)(4)(E)(ii) of title 5, United States Code not to receive a reduction in contributions, and
(D)
any self-employed individual who is not a covered self-employed individual.
(2) Covered non-Federal employer; covered self-employed individual
The terms covered non-Federal employer and covered self-employed individual have the respective meanings given such terms by section 8401 of title 5, United States Code.
(d) Coordination with other credits
(1) Business credit treated as part of general business credit
In the case of an employer, the credit which (but for this paragraph) would otherwise be allowed under subsection (a) for any taxable year shall be treated as a credit listed in section 38(b) for such taxable year (and not allowed under subsection (a)).
(2) Denial of double benefit
No deduction or credit shall be allowed under any other section of this title with respect to contributions to a plan (including the Federal Employees Retirement System under chapter 84 of title 5, United States Code) if credit is allowable with respect to such contributions under subsection (a) (determined without regard to this subsection).
(b) Employer credit To be part of general business credit
Subsection (b) of section 38 of the Internal Revenue Code of 1986 is amended by striking plus
at the end of paragraph (40), by striking the period at the end of paragraph (41) and inserting , plus
, and by adding at the end the following new paragraph:
(42)
in the case of an eligible taxpayer (as defined in section 36A(c)), the portion of the credit for small employer and self-employed pension contributions to which section 36A(d)(1) applies.
(c) Conforming amendment
Section 6211(b)(4)(A) of the Internal Revenue Code of 1986 is amended by inserting , 36A
after 36
.
(d) Clerical amendment
The table of sections for subpart C of part IV of subchapter A of chapter 1 of the Internal Revenue Code of 1986 is amended by inserting after the item relating to section 36 the following new item:
(e) Effective date
The amendments made by this section shall apply to contributions made after the date of the enactment of this Act.
Sec. 6. Failure to provide covered retirement program
(a) In general
Chapter 43 of the Internal Revenue Code of 1986 is amended by adding at the end the following new section:
4980J. Failure to maintain required retirement program
(a) General rule
(1) Employers
There is hereby imposed a tax on the failure of an employer either—
(A)
to make available a covered retirement program to all employees of the employer, or
(B)
in the case of a covered employer, to make required contributions under sections 8423(a) and 8432(c) of title 5, United States Code with respect to the employees of the employer.
(2) Self-employed individuals
There is hereby imposed a tax on the failure of a self-employed individual either—
(A)
to participate in a covered retirement program, or
(B)
in the case of a covered self-employed individual, to make required contributions under sections 8423(a) and 8432(c) of title 5, United States Code with respect to the individual.
(b) Amount of tax
(1) In general
The amount of the tax imposed by subsection (a) on any failure with respect to an employee or self-employed individual shall be $10 for each day in the noncompliance period with respect to such failure.
(2) Noncompliance period
For purposes of this section, the term noncompliance period means, with respect to any failure, the period—
(A)
beginning on the date such failure first occurs, and
(B)
ending on the earlier of—
(i)
the date such failure is corrected, or
(ii)
with respect to any employer, the date that is 3 months after the last date on which the employee is employed by the employer.
(3) Adjustment for inflation
(A) In general
In the case of any failure occurring in a calendar year beginning after 2026, the $10 amount under paragraph (1) shall be increased by an amount equal to such dollar amount multiplied by the cost-of-living adjustment determined under section 1(f)(3) for the calendar year determined by substituting
calendar year 2025forcalendar year 2016in subparagraph (A)(ii) thereof.(B) Rounding
If any amount adjusted under subparagraph (A) is not a whole dollar amount, such amount shall be rounded to the nearest whole dollar amount.
(c) Limitations on amount of tax
(1) Tax not to apply where failure not discovered exercising reasonable diligence
No tax shall be imposed by subsection (a) on any failure during any period for which it is established to the satisfaction of the Secretary that none of the persons referred to in subsection (d) knew, nor exercising reasonable diligence would have known, that such failure existed.
(2) Overall limitation for unintentional failures
In the case of failures which are due to reasonable cause and not to willful neglect—
(A) General rule
The tax imposed by subsection (a) for failures during the taxable year of the employer or self-employed individual shall not exceed $500,000.
(B) Taxable years in the case of certain controlled groups
For purposes of this subparagraph, if not all persons who are treated as a single employer for purposes of this section have the same taxable year, the taxable years taken into account shall be determined under principles similar to the principles of section 1561.
(3) Waiver by Secretary
In the case of a failure which is due to reasonable cause and not to willful neglect, the Secretary may waive part or all of the tax imposed by subsection (a) to the extent that the payment of such tax would be excessive relative to the failure involved.
(d) Employer liability for tax
The employer shall be liable for the tax imposed by subsection (a)(1) on a failure. All employers, determined without regard to subsection (e)(2), shall be jointly and severally liable for the liability of any other employer with which they are aggregated under subsection (e)(2).
(e) Definitions
For purposes of this section—
(1) Terms relating to covered retirement programs, etc
Any term used in this section which is defined in section 2 of the Pensions for All Act has the meaning given such term by such section.
(2) Employer
All employers treated as a single employer under subsection (b), (c), (m), or (o) of section 414 shall be treated as 1 employer.
(b) Clerical amendment
The table of sections for chapter 43 of the Internal Revenue Code of 1986 is amended by adding at the end the following new item:
(c) Effective date
The amendments made by this section shall apply to plan years beginning after December 31, 2025.
Sec. 7. Prohibition on the reduction of compensation
An employer that employs an employee on or before the date of enactment of this Act may not reduce any form of compensation provided to the employee due to the requirement imposed by this Act that the employee be enrolled in a covered retirement program or FERS.