Strengthening Benefit Plans Act of 2025

Allows employers and pension plan sponsors to move certain surplus retiree health or pension assets into other employee benefit uses under defined rules. One part permits excess retiree health assets to be transferred to pay active-employee benefits (including bolstering pension funding or, in limited cases, funding a VEBA) subject to limits and notices; the other part permits moving defined‑benefit pension surplus into a qualified replacement defined‑contribution plan if vesting, benefit‑protection, tax, and ERISA conditions are met.

The bill changes tax and ERISA rules to treat transferred amounts as permitted distributions or plan assets when conditions are satisfied, requires notices to participants, sets limits and timing conditions, and adds protections against immediate benefit reductions and preserves vesting for transferred amounts. Exact effective dates are set in the text but are not detailed here.