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Inserts a new section 205A after section 205 in part 2 of subtitle B of title I of the Employee Retirement Income Security Act of 1974 establishing additional spousal consent requirements for individual account plans (coordination with section 205, exceptions for certain distributions and rollovers, written-consent requirements including witness/notary and consent period, limits on consent effectiveness, and rules for discharge of plan liability). Also inserts a corresponding item into the table of sections of part 2 (clerical amendment).
Amends section 502(a) by adding a new paragraph (12) authorizing an individual to bring a civil action for appropriate relief for violations of the individual's rights under the newly added ERISA section 205A.
Amends section 401(a) by inserting a new paragraph (18) after paragraph (17) that conditions qualification of a trust forming part of a defined contribution plan on meeting additional spousal consent requirements substantially similar to those added to ERISA (exceptions, direct rollover exceptions, written-consent rules, consent period, and related provisions).
Adds stronger spousal protections for defined-contribution and individual-account retirement plans by requiring written spousal consent for most distributions and beneficiary changes, creates a private right of action for violations, and aligns tax rules with the new protections. Requires firms that offer retirement products to post a clear link to federal retirement education on the CFPB website, and creates two competitive grant programs (one for women's retirement and financial education and one to help low-income women and survivors of domestic violence obtain and enforce qualified domestic relations orders). Funding is authorized beginning in fiscal year 2026 and most plan-distribution rules take effect for plan years starting more than one year after enactment, with special rules for plan amendments.
Approximately 28 percent of non-retired adults have no defined benefit plan or retirement savings, based on 2023 data from the Board of Governors of the Federal Reserve System.
In 2023, the section states that approximately (text omits the percentage) of the private sector workforce did not have access to a retirement plan at the workplace, and only half of the workforce participated in a retirement plan.
Women’s retirement preparedness often lags behind men’s; the median income for women aged 65 and older in 2022 was 83 percent of the median income for men aged 65 and older, counting Social Security, pensions, investments, and earnings.
Women aged 80 and older had the highest poverty rate among older persons: 14.7 percent of women aged 80+ lived in poverty versus 10.3 percent of men in the same age group.
Women make up two-thirds of low-wage workers while being less than half of all workers; low-wage workers are less likely than other workers to participate in a workplace retirement plan.
Who is affected and how:
Spouses of plan participants: Gain stronger legal protections—most distributions and beneficiary changes will require their written consent, reducing surprise loss of retirement assets in divorce or separation. They also gain the ability to sue for violations.
Plan participants (employees and retirees): May face new procedural steps when requesting distributions, changing beneficiaries, or rolling over accounts; some small or routine transactions may still be excluded by specified exceptions.
Women, low-income women, and survivors of domestic violence: Targeted for benefits through two grant programs—one for retirement and financial education and another to assist with QDRO preparation and enforcement—expected to improve knowledge and access to retirement assets after divorce.
Employers, plan sponsors, recordkeepers, and annuity/financial product providers: Will incur administrative costs to implement consent procedures, update plan documents and systems, provide required notices, and host the CFPB link on websites. They may also face litigation risk from private suits alleging noncompliance.
Financial firms and consumer educators: Must add a clear, standardized link to federal retirement education on their sites; the Financial Literacy and Education Commission will set the form and text for that link.
Federal agencies: Department of Labor (Women's Bureau and EBSA) will administer grant programs, and the Financial Literacy and Education Commission plus CFPB will manage consumer education implementation.
Overall effects and tradeoffs:
Expand sections to see detailed analysis
Read twice and referred to the Committee on Health, Education, Labor, and Pensions.
Introduced March 12, 2025 by Tammy Baldwin · Last progress March 12, 2025
Read twice and referred to the Committee on Health, Education, Labor, and Pensions.
Introduced in Senate