Sponsors (2)
The bill expands and incentivizes retirement saving (through portable accounts, employer and individual credits, and ERISA coverage) while raising revenue from higher individual and corporate tax rates — trading broader retirement access and revenue for added federal costs, administrative and legal complexity, and higher taxes that could dampen investment and impose burdens on some employers.
Workers without employer plans (including middle‑ and low‑income people and near‑retirees) gain new or expanded, potentially portable options and incentives to save for retirement, increasing access and retirement preparedness.
Very small and small employers (and some nonprofits) receive larger startup or refundable tax credits/offsets that lower the net cost of offering or funding retirement contributions, making it cheaper to adopt and fund plans.
Including new personal/portable accounts under ERISA and highlighting savers' confidence gaps may standardize protections and fiduciary rules, increasing consumer protections for account holders.
High‑income individuals and C corporations will face higher federal taxes, which reduces after‑tax income for wealthy taxpayers and after‑tax profits for corporations and may dampen investment, hiring, and small‑business owner incentives.
New and expanded tax credits and program administration add federal costs and reduce revenue, potentially increasing deficits or requiring other offsets, spending cuts, or tax increases elsewhere.
Employers that missed required ERISA §802 (or similar) contributions in the current or prior years are barred from claiming credits, which can penalize firms with prior cash‑flow problems and leave their workers with less support.
Based on analysis of 8 sections of legislative text.
Creates refundable employer and individual retirement contribution credits, expands the startup credit and ERISA table of contents, and raises top individual (39.6%) and corporate (23%) tax rates effective 2025.
Official title: To establish a universal personal savings program, and for other purposes.
Introduced October 31, 2025 by Scott Peters · Last progress October 31, 2025
Creates new federal tax credits and ERISA authorities to expand retirement saving while raising statutory income tax rates. The bill adds a new "Universal personal savings" entry to ERISA, increases the small-employer pension startup credit and creates two new tax credits — a refundable employer credit for minimum employer contributions and an individual saver credit for contributions to retirement accounts — and raises the top individual income tax rate to 39.6% and the corporate tax rate to 23%, mostly effective for taxable years beginning after December 31, 2024.