Sponsors (17)
The bill strengthens spousal protections and funds targeted education and QDRO assistance—especially for women and survivors—improving retirement security, but it increases federal spending and creates substantial new compliance, administrative, and litigation costs that could delay access to funds for some individuals and favor larger service providers.
Spouses and surviving beneficiaries (especially retirees) gain stronger legal protections that limit unilateral disbursements and preserve survivor benefits, backed by trustee-to-trustee rollover rules and a private right of action to enforce those protections.
Working-age and retired women (including low-income women and survivors of domestic violence) gain targeted help—federal grants, community-based services, QDRO assistance, and tailored financial-literacy programs—improving their retirement security.
Seniors and other consumers get easier access to federal retirement-planning resources and clearer, standardized links and materials, helping people make better retirement decisions and potentially reduce fraud and poor choices.
Employers, plan administrators, and financial firms will face higher administrative and compliance costs (notices, consent/witnessing, system changes, grant administration, website/link updates) that may be passed on to consumers or reduce plan resources.
Participants needing small, one-time hardship distributions (e.g., emergency needs) may face delays or denial because most distributions will require spousal consent or strict formalities.
New private rights of action and strict consent formalities increase the risk of litigation between spouses or beneficiaries, raising legal exposure for plans and families.
Based on analysis of 7 sections of legislative text.
Requires spouse consent for many defined contribution plan distributions, adds enforceable tax and ERISA rules, mandates CFPB links, and funds grants for women’s retirement literacy and QDRO assistance.
Official title: To amend the Employee Retirement Income Security Act of 1974 to provide for greater spousal protection under defined contribution plans, and for other purposes.
Introduced March 11, 2025 by Lauren Underwood · Last progress March 11, 2025
Requires many employer-sponsored defined contribution retirement plans to obtain written spouse consent before making distributions or certain withdrawals, while preserving limited exceptions (small distributions, required minimums, certain rollovers and annuities). Creates a private right of action for violations and adds a parallel condition to the Internal Revenue Code so plan trusts remain qualified only if they follow the new spousal-consent rules. Directs retirement-product providers to link to CFPB retirement education, and funds competitive grant programs through the Labor Department to improve women’s financial literacy and to help low-income women and domestic-violence survivors secure qualified domestic relations orders (QDROs). Provides multi-year effective-date and plan amendment rules and authorizes annual appropriations for the grant programs.