Sponsor
Bernard Sanders
Senator · I-VT
Senator · I-VT
The bill substantially expands access and portability of federal-style retirement benefits and offers strong financial incentives to participate, but does so by imposing new employer obligations, potential penalties, fiscal exposure to taxpayers, and regulatory complexity that may particularly burden small businesses.
Millions of non‑Federal workers — including government contractors, private employees, and gig workers — gain access to FERS or comparable covered retirement programs, expanding retirement coverage and reducing gaps in access.
Self‑employed individuals and some non‑Federal workers can contribute to the Thrift Savings Fund and have their non‑Federal, self‑employment, and Federal service credited toward annuities, improving portability and retirement savings options.
Employers (especially small employers) and self‑employed filers receive a tax credit up to 50% of qualified contributions, lowering the net cost of sponsoring or making retirement contributions and incentivizing participation.
Small and non‑Federal employers face substantial new administrative, payroll, and compliance obligations (offer/tracking/enrollment/deduction/remittance), likely raising costs and potentially reducing hiring or wages.
Daily monetary penalties (e.g., $10/day indexed after 2026) and joint‑and‑several liability for failures can create large cumulative liabilities for employers, disproportionately harming small firms even if caps/waivers exist.
If many non‑Federal workers enroll in FERS (including self‑employed opting in), the federal retirement system and taxpayers could face increased long‑term liabilities and fiscal pressure.
Based on analysis of 7 sections of legislative text.
Requires employers/self‑employed to offer a covered retirement plan or elect FERS, expands FERS access, creates a tax credit for contributions, and imposes penalties for noncompliance.
Official title: 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.
Introduced July 17, 2025 by Bernard Sanders · Last progress July 17, 2025
Creates a new national framework requiring employers and self-employed individuals to provide access to a retirement plan or elect participation in the Federal Employees Retirement System (FERS). The bill expands eligibility to allow certain non‑Federal employees and self‑employed people to join FERS or a Secretary‑approved comparable plan, offers a refundable tax credit to help cover employer/self contributions, imposes a daily penalty for noncompliance, and forbids pay cuts tied to required enrollment.