119-s2335

[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[S. 2335 Introduced in Senate

    (IS) ]

<DOC>

119th CONGRESS
 1st Session
 S. 2335

 To 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.

_______________________________________________________________________

 IN THE SENATE OF THE UNITED STATES

 July 17, 2025

 Mr. Sanders introduced the following bill; which was read twice and 
 referred to the Committee on Finance

_______________________________________________________________________

 A BILL

 To 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.

 Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

 This Act may be cited as the ``Pensions for All Act''.

SEC. 2. DEFINITIONS.

 In this Act:

    (1) Covered retirement program.--The term ``covered 
 retirement program'' means a retirement program other than FERS 
 that the Secretary determines provides benefits that are 
 comparable to the benefits available under FERS to an employee 
 (as that term is defined under 

section 8401 of title 5, United 
 States Code, on the day before the date of enactment of this 
 Act).

    (2) Employee; employer.--The terms ``employer'' and 
 ``employee'' have the meanings given such terms in 

section 3 of 
 the Employee Retirement Income Security Act of 1974 (29 U.S.C. 
 1002).

    (3) FERS.--The term ``FERS'' means the Federal Employees 
 Retirement System under chapter 84 of title 5, United States 
 Code.

    (4) Secretary.--The term ``Secretary'' means the Secretary 
 of Labor.

SEC. 3. REQUIREMENT TO PROVIDE A RETIREMENT PLAN EQUIVALENT TO FERS OR 
 TO PARTICIPATE IN FERS.

    (a) Initial Coverage.--

    (1) Employers.--Each employer shall--
        (A) make available to each employee employed by the 
 employer a covered retirement program; or
        (B) notify the Secretary that the employees of the 
 employer will participate in FERS.

    (2) Self-employed enrollment.--Each self-employed 
 individual shall--
        (A) be enrolled in a covered retirement program; or
        (B) notify the Secretary that the self-employed 
 individual will participate in FERS.

    (b) Subsequent Coverage Election.--

    (1) Options for employers.--At a frequency determined by 
 the Secretary, in coordination with the Director of the Office 
 of Personnel Management, that is not less than annually, an 
 employer that has in effect a covered retirement program for 
 the employees of the employer or with respect to whom the 
 employees of the employer are participating in FERS may elect 
 to--
        (A) in the case of an employer that has in effect a 
 covered retirement program--
            (i) cease making contributions to the 
 covered retirement program for such employees; 
 and
            (ii) have each employee employed by the 
 employer participate in FERS; or
        (B) in the case of an employer with respect to whom 
 the employees of the employer are participating in 
 FERS--
            (i) have the employees cease participating 
 in FERS; and
            (ii) make available to each employee 
 employed by the employer a covered retirement 
 program.

    (2) Options for self-employed individuals.--At a frequency 
 determined by the Secretary, in coordination with the Director 
 of the Office of Personnel Management, that is not less than 
 annually, a self-employed individual who is enrolled in a 
 covered retirement program or is participating in FERS may 
 elect to--
        (A) in the case of a self-employed individual who 
 is enrolled in a covered retirement program--
            (i) cease making contributions to the 
 covered retirement program; and
            (ii) participate in FERS; or
        (B) in the case of a self-employed individual who 
 is participating in FERS--
            (i) cease participating in FERS; and
            (ii) enroll in a covered retirement 
 program.

SEC. 4. PARTICIPATION OF NON-FEDERAL EMPLOYEES AND SELF-EMPLOYED 
 INDIVIDUALS IN FERS.

    (a) 

=== Definitions. ===
-

Section 8401 of title 5, United States Code, is 
amended--

    (1) by striking paragraph

    (2) and inserting the following:
 ``

    (2) the term `basic pay'--
 ``
        (A) except as provided in subparagraph
        (B) , has 
 the meaning given such term by 

section 8331

    (3) ; and
 ``
        (B) with respect to a covered self-employed 
 individual, means the annual income of the covered 
 self-employed individual that is attributable to the 
 activities of the individual as a covered self-employed 
 individual;'';

    (2) in paragraph

    (11) --
        (A) in subparagraph
        (B) , by striking ``and'' at the 
 end;
        (B) in subparagraph
            (C) , by adding ``and'' at the 
 end;
            (C) by inserting after subparagraph
            (C) the 
 following:
 ``
            (D) an individual who is--
 ``
            (i) an covered non-Federal employee; or
 ``
            (ii) a covered self-employed 
 individual;''; and
            (D) in the matter following subparagraph
            (C) , by 
 striking ``civilian service'' and inserting ``service 
 in a position described in subparagraph
        (A) ,
        (B) ,
            (C) , 
 or
            (D) '';

    (3) in paragraph

    (12) , by striking ``civilian'';

    (4) in paragraph

    (31) , in the matter following subparagraph
            (C) , by striking ``civilian service'' and inserting ``service 
 as an employee or Member'';

    (5) in paragraph

    (38)
        (B) , by striking ``and'' at the end;

    (6) in paragraph

    (39) , by striking the period at the end 
 and inserting a semicolon; and

    (7) by adding at the end the following:
 ``

    (40) the term `covered non-Federal employer' means an 
 employer that is not a department, agency, or other 
 instrumentality of the Federal Government and does not have in 
 effect for all employees of the employer a retirement plan that 
 the Secretary of Labor has determined provides benefits that 
 are comparable to the benefits provided under the retirement 
 program under this chapter;
 ``

    (41) the term `covered non-Federal employee' means an 
 individual employed by a covered non-Federal employer; and
 ``

    (42) the term `covered self-employed individual' means a 
 self-employed individual who is not enrolled in a retirement 
 plan other than the Federal Employees Retirement System that 
 the Secretary of Labor has determined provides benefits that 
 are comparable to the benefits provided under the retirement 
 program under this chapter.''.

    (b) Eligibility for Annuity.--

Section 8410 of title 5, United 
States Code, is amended by striking ``civilian service'' and inserting 
``service as an employee or a Member''.
            (c) Creditable Service.--

Section 8411

    (b) of title 5, United States 
Code, is amended--

    (1) in paragraph

    (1) , by inserting ``subject to paragraphs

    (7) and

    (8) ,'' before ``employment'';

    (2) in paragraph

    (5) , by striking ``and'' at the end;

    (3) in paragraph

    (6) , by striking the period at the end and 
 inserting a semicolon; and

    (4) by inserting after paragraph

    (6) the following:
 ``

    (7) a period of service as a covered non-Federal employee 
 performed after the date of enactment of this paragraph; and
 ``

    (8) a period during which an individual is a covered 
 self-employed individual that occurs after the date of 
 enactment of this paragraph.'';
            (d) Phased Retirement.--

Section 8412a
            (c) (5)
        (A) of title 5, United 
States Code, is amended by striking ``creditable civilian service'' and 
inserting ``other service that is creditable under this chapter''.

    (e) Employee Contributions.--

Section 8422 of title 5, United States 
Code, is amended--

    (1) in subsection

    (a) --
        (A) in paragraph

    (1) , by striking ``The employing 
 agency'' and inserting ``Subject to paragraph

    (4) , the 
 employing agency'';
        (B) in paragraph

    (3) , by striking ``civilian'' each 
 place it appears; and
            (C) by adding at the end the following:
 ``

    (4)
        (A) A covered non-Federal employer shall deduct and withhold 
from the basic pay of each covered non-Federal employee of the covered 
non-Federal employer the percentage of basic pay that would be deducted 
and withheld from basic pay if the covered non-Federal employee were an 
employee of the Federal Government, as determined in accordance with 
paragraphs

    (2) and

    (3) .
 ``
        (B) For a covered self-employed individual, an amount equal to 
the percentage of basic pay of the covered self-employed individual 
that would be deducted and withheld from basic pay if the covered non-
Federal employee were an employee of the Federal Government, as 
determined in accordance with paragraphs

    (2) and

    (3) , shall be deemed 
to be deducted and withheld from the basic pay of the covered self-
employed individual for purposes of subsection
            (c) , and the covered 
self-employed individual shall deposit such amount in the Treasury of 
the United States in accordance with such subsection.''; and

    (2) in subsection

    (e)

    (1)
        (B) , by striking ``civilian'' each 
 place it appears.

    (f) Employer Contributions.--

Section 8423

    (a) of title 5, United 
States Code, is amended--

    (1) in paragraph

    (1) , in the matter preceding subparagraph
        (A) , by inserting ``, and, subject to paragraph

    (4) , each 
 covered non-Federal employer and each covered self-employed 
 individual,'' after ``

section 8422

    (a) '';

    (2) by redesignating paragraph

    (4) as paragraph

    (5) ; and

    (3) by inserting after paragraph

    (3) the following:
 ``

    (4)
        (A) In this paragraph--
 ``
            (i) the term `additional employer percentage', with 
 respect to a covered non-Federal employer, means 50 percent of 
 the percentage obtained by dividing--
 ``
            (I) the amount of the annual revenue of the 
 covered non-Federal employer that is in excess of 
 $25,000,000; by
 ``
            (II) $75,000,000; and
 ``
            (ii) the term `additional self-employed percentage', with 
 respect to a covered self-employed individual, means 50 percent 
 of the percentage obtained by dividing--
 ``
            (I) the amount of the basic pay of the covered 
 self-employed individual that is in excess of $75,000; 
 by
 ``
            (II) $50,000.
 ``
        (B) Subject to subparagraphs
            (D) and
        (E) , the amount contributed 
to the Fund under paragraph

    (1) by a covered non-Federal employer shall 
be reduced as follows:
 ``
            (i) For a covered non-Federal employer with annual 
 revenue of not more than $25,000,000, the amount required to be 
 contributed shall be the amount equal to 50 percent of the 
 otherwise applicable amount.
 ``
            (ii) For a covered non-Federal employer with annual 
 revenue of more than $25,000,000 and not more than 
 $100,000,000, the amount required to be contributed shall be 
 the sum of--
 ``
            (I) the amount equal to 50 percent of the 
 otherwise applicable amount; and
 ``
            (II) the amount equal to the additional employer 
 percentage of the otherwise applicable amount.
 ``
            (C) Subject to subparagraph
        (E) , the amount contributed to the 
Fund under paragraph

    (1) by a covered self-employed individual shall be 
reduced as follows:
 ``
            (i) For a covered self-employed individual with basic pay 
 of not more than $75,000, the amount required to be contributed 
 shall be the amount equal to 50 percent of the otherwise 
 applicable amount.
 ``
            (ii) For a covered self-employed individual with basic 
 pay of more than $75,000 and not more than $125,000, the amount 
 required to be contributed shall be the sum of--
 ``
            (I) the amount equal to 50 percent of the 
 otherwise applicable amount; and
 ``
            (II) the amount equal to the additional self-
 employed percentage of the otherwise applicable amount.
 ``
            (D) The amount of the reduction under subparagraph
        (B) with 
respect to a covered non-Federal employer shall be reduced or 
eliminated based on the proportion of highly compensated employees of 
the covered non-Federal employer, in accordance with regulations 
promulgated by the Secretary of Labor.
 ``
        (E)
            (i) A covered non-Federal employer may elect to have both the 
reduction under subparagraph
        (B) of this paragraph and the reduction 
under 

section 8432
            (c) (2)
        (B) not apply for any year.
 ``
            (ii) A covered self-employed individual may elect to have the 
reduction under subparagraph
            (C) of this paragraph and the reduction 
under 

section 8432
            (c) (2)
            (C) not apply for any year.''.

    (g) Thrift Savings Plan.--

    (1) Transfers treated as a separation.--

Section 8431

    (a) of 
 title 5, United States Code, is amended by inserting ``or 
 employment at a covered non-Federal employer'' after 
 ``Government employment''.

    (2) Contributions.--

Section 8432 of title 5, United States 
 Code, is amended--
        (A) in subsection

    (a) --
            (i) in paragraph

    (1) , by striking ``An 
 employee or Member'' and inserting ``Subject to 
 paragraph

    (4) , an employee or Member''; and
            (ii) by adding at the end the following:
 ``

    (4) For a covered self-employed individual, the covered self-
employed individual may contribute to the Thrift Savings Fund in such 
manner, and at such frequency, as the Secretary of Labor shall 
establish.'';
        (B) in subsection
            (c) --
            (i) in paragraph

    (1) --
            (I) in subparagraph
        (A) , by 
 inserting ``and each covered non-
 Federal employer'' after ``the 
 employing agency'';
            (II) in subparagraph
            (C) 
            (iii) , by 
 striking ``civilian''; and
            (III) by adding at the end the 
 following:
 ``
            (D) 
            (i) A covered self-employed individual shall make 
contributions to the Thrift Savings Fund for the benefit of the self-
employed individual in the same amount as would be contributed by a 
covered non-Federal employer if the self-employed individual were an 
employee of the covered non-Federal employer.
 ``
            (ii) The Secretary of Labor shall establish the manner and 
frequency with which a covered self-employed individual shall make 
contributions to the Thrift Savings Fund under this subparagraph.'';
            (ii) in paragraph

    (2) --
            (I) in subparagraph
        (A) --

    (aa) by inserting ``, and, 
 subject to paragraph

    (4) , each 
 covered non-Federal employer 
 and covered self-employed 
 individual,'' after ``the 
 employing agency''; and

    (bb) by striking 
 ``employing agency's 
 contribution'' and inserting 
 ``contribution of the employing 
 agency, covered non-Federal 
 employer''; and
            (II) in subparagraph
        (B) , in the 
 matter preceding clause
            (i) , by 
 inserting ``or, subject to paragraph

    (4) , covered non-Federal employer, or 
 covered self-employed individual'' 
 after ``employing agency''; and
            (iii) by adding at the end the following:
 ``

    (4)
        (A) In this paragraph--
 ``
            (i) the term `additional employer percentage', with 
 respect to a covered non-Federal employer, means 50 percent of 
 the percentage obtained by dividing--
 ``
            (I) the amount of the annual revenue of the 
 covered non-Federal employer that is in excess of 
 $25,000,000; by
 ``
            (II) $75,000,000; and
 ``
            (ii) the term `additional self-employed percentage', with 
 respect to a covered self-employed individual, means 50 percent 
 of the percentage obtained by dividing--
 ``
            (I) the amount of the basic pay of the covered 
 self-employed individual that is in excess of $75,000; 
 by
 ``
            (II) $50,000.
 ``
        (B) Subject to subparagraphs
            (D) and
        (E) , the amount contributed 
to the Thrift Savings Fund under paragraphs

    (1) and

    (2) by a covered 
non-Federal employer shall be reduced as follows:
 ``
            (i) For a covered non-Federal employer with annual 
 revenue of not more than $25,000,000, the amount required to be 
 contributed shall be the amount equal to 50 percent of the 
 otherwise applicable amount.
 ``
            (ii) For a covered non-Federal employer with annual 
 revenue of more than $25,000,000 and not more than 
 $100,000,000, the amount required to be contributed shall be 
 the sum of--
 ``
            (I) the amount equal to 50 percent of the 
 otherwise applicable amount; and
 ``
            (II) the amount equal to the additional employer 
 percentage of the otherwise applicable amount.
 ``
            (C) Subject to subparagraph
        (E) , the amount contributed to the 
Thrift Savings Fund under paragraphs

    (1) and

    (2) by a covered self-
employed individual shall be reduced as follows:
 ``
            (i) For a covered self-employed individual with basic pay 
 of not more than $75,000, the amount required to be contributed 
 shall be the amount equal to 50 percent of the otherwise 
 applicable amount.
 ``
            (ii) For a covered self-employed individual with basic 
 pay of more than $75,000 and not more than $125,000, the amount 
 required to be contributed shall be the sum of--
 ``
            (I) the amount equal to 50 percent of the 
 otherwise applicable amount; and
 ``
            (II) the amount equal to the additional self-
 employed percentage of the otherwise applicable amount.
 ``
            (D) The amount of the reduction under subparagraph
        (B) with 
respect to a covered non-Federal employer shall be reduced or 
eliminated based on the proportion of highly compensated employees of 
the covered non-Federal employer, in accordance with regulations 
promulgated by the Secretary of Labor.
 ``
        (E)
            (i) A covered non-Federal employer may elect to have both the 
reduction under subparagraph
        (B) of this paragraph and the reduction 
under 

section 8423

    (a)

    (4)
        (B) not apply for any year.
 ``
            (ii) A covered self-employed individual may elect to have the 
reduction under subparagraph
            (C) of this subparagraph and the reduction 
under 

section 8423

    (a)

    (4)
            (C) not apply for any year.''.
 ``

    (5)
        (A) The Secretary of Labor shall, at the frequency determined 
appropriate by the Secretary, compute the amount of the reduction in 
contributions by--
 ``
            (i) a covered non-Federal employer under paragraph

    (4) with respect to each covered non-Federal employee of the 
 covered non-Federal employer; and
 ``
            (ii) a covered self-employed individual under paragraph

    (4) with respect to the covered self-employed individual.
 ``
        (B) The Secretary of the Treasury shall, in such installments as 
the Secretary determines appropriate, credit to the Thrift Savings 
Fund--
 ``
            (i) for the benefit of each covered non-Federal employee 
 for whom the contributions by the covered non-Federal employer 
 employing the covered non-Federal employee are reduced under 
 paragraph

    (4) an amount equal to the amount of the reduction; 
 and
 ``
            (ii) for the benefit of each covered self-employed 
 individual for whom the contributions by the covered self-
 employed individual are reduced under paragraph

    (4) an amount 
 equal to the amount of the reduction.'';
            (C) in subsection

    (e) --
            (i) by inserting ``

    (1) '' before ``The sums 
 required''; and
            (ii) by adding at the end the following:
 ``

    (2) The sums required to be contributed to the Thrift Savings 
Fund by a covered non-Federal employer or covered self-employed 
individual under subsection
            (c) for the benefit of a covered non-
Federal employee or covered self-employed individual, respectively, 
shall be paid by the covered non-Federal employer or covered self-
employed individual, respectively, in accordance with such procedures 
as the Secretary of the Treasury may, in consultation with the 
Executive Director, prescribe in regulations.'';
            (D) in subsection

    (g) --
            (i) by inserting ``or employment at a 
 covered non-Federal employer'' after 
 ``Government employment'' each place it 
 appears;
            (ii) by striking ``civilian service'' each 
 place it appears and inserting ``creditable 
 service as an employee or Member''; and
            (iii) in paragraph

    (5) , by inserting ``or 
 by a covered non-Federal employer'' after ``the 
 Government''; and
        (E) in subsection
            (i) (1)
        (B) , by striking ``civilian 
 service'' and inserting ``service as an employee''.

    (3) Payment of lost earnings.--

Section 8432a of title 5, 
 United States Code, is amended--
        (A) by inserting ``or covered non-Federal 
 employer'' after ``employing agency'' each place it 
 appears, except the second place it appears in 
 subsection
            (c) ;
        (B) in subsection

    (a) --
            (i) in paragraph

    (1) , by inserting ``or 
 covered non-Federal employer'' after ``such 
 agency''; and
            (ii) in paragraph

    (2) --
            (I) in the matter preceding 
 subparagraph
        (A) , by striking ``an 
 employing agency's failure'' and 
 inserting ``a failure by an employing 
 agency or covered non-Federal 
 employer''; and
            (II) in subparagraph
        (A) , by 
 inserting ``or covered non-Federal 
 employer'' after ``the agency'';
            (C) in subsection

    (b)

    (3) , by inserting ``, 
 respectively,'' before ``errors''; and
            (D) in subsection
            (c) , in the first sentence, by 
 inserting ``or paid by the covered non-Federal employer 
 in accordance with such procedures as the Secretary of 
 the Treasury may, in consultation with the Executive 
 Director, prescribe in regulations'' after 
 ``establishment''.

    (4) Contributions of persons who perform military 
 service.--

Section 8432b of title 5, United States Code, is 
 amended--
        (A) by inserting ``or covered non-Federal 
 employer'' after ``employing agency'' each place it 
 appears;
        (B) in subsection

    (g)

    (1) , by inserting ``or covered 
 non-Federal employer'' after ``the agency''; and
            (C) in subsection

    (h)

    (1) , by striking ``civilian 
 service'' each place it appears and inserting ``service 
 as an employee''.

    (5) Contributions of certain persons reemployed after 
 service with international organizations.--

Section 8432c of 
 title 5, United States Code, is amended--
        (A) in subsection
            (c) , by inserting ``or covered 
 non-Federal employer'' after ``the agency''; and
        (B) in subsection

    (e) , by striking ``civilian''.

    (6) Benefits and election of benefits.--

Section 8433 of 
 title 5, United States Code, is amended--
        (A) by striking ``Government employment'' each 
 place it appears and inserting ``service that is 
 creditable under this chapter''; and
        (B) in subsection
            (c) (1) , by striking ``Government 
 service'' and inserting ``service that is creditable 
 under this chapter''.

    (h) Rights of a Widow or Widower.--

Section 8442

    (b)

    (1) of title 5, 
United States Code, is amended, in the matter preceding subparagraph
        (A) , by striking ``civilian service'' and inserting ``service as an 
employee''.
            (i) Rights of a Child.--

Section 8443

    (a)

    (1) of title 5, United 
States Code, is amended, in the matter preceding subparagraph
        (A) , by 
striking ``civilian service'' and inserting ``service as an employee''.

    (j) Disability Retirement.--

Section 8451

    (a) of title 5, United 
States Code, is amended--

    (1) by striking ``employee's agency'' each place it appears 
 and inserting ``agency or covered non-Federal employer 
 employing the employee''; and

    (2) in paragraph

    (1)
        (A) , by striking ``civilian service'' 
 and inserting ``service as an employee''.

    (k) Recovery; Restoration of Earning Capacity.--

Section 8455

    (a)

    (1) of title 5, United States Code, is amended by inserting ``or a covered 
non-Federal employer or on becoming a covered self-employed 
individual'' after ``reemployment by the Government''.
            (l) Authority of the Office of Personnel Management.--

Section 8461

    (h)

    (1) of title 5, United States Code, is amended by inserting ``, 
covered non-Federal employer, and covered self-employed individual'' 
after ``Each Government agency''.
            (m) Annuities and Pay on Reemployment.--

Section 8468 of title 5, 
United States Code, is amended by adding at the end the following:
 ``

    (k) This section shall not apply to an individual serving in a 
position as a covered non-Federal employee or who is a covered self-
employed individual.''.

SEC. 5. CREDIT FOR SMALL EMPLOYER AND SELF-EMPLOYED PENSION 
 CONTRIBUTIONS.

    (a) In General.--Subpart C of part IV of subchapter A of chapter 1 
of the Internal Revenue Code of 1986 is amended by inserting after 

section 36 the following new section:

``

SEC. 36A. CREDIT FOR SMALL EMPLOYER AND SELF-EMPLOYED PENSION 
 CONTRIBUTIONS.

 ``

    (a) In General.--In the case of an eligible taxpayer, there shall 
be allowed as a credit against the tax imposed by subtitle A an amount 
equal to the contribution assistance amount with respect to such 
taxpayer for the taxable year.
 ``

    (b) Contribution Assistance Amount.--In the case of an eligible 
taxpayer, for purposes of this section--
 ``

    (1) In general.--The contribution assistance amount is an 
 amount equal to the applicable percentage of the qualified 
 pension contributions paid by the eligible taxpayer during the 
 taxable year.
 ``

    (2) Applicable percentage.--For purposes of paragraph

    (1) , the applicable percentage is 50 percent, reduced (but not 
 below zero) by the number of percentage points which--
 ``
        (A) in the case of an employer, bears the same 
 ratio to 50 as the excess of--
 ``
            (i) the gross receipts of the employer 
 for the taxable year, over
 ``
            (ii) $25,000,000, bears to
 $75,000,000, and
 ``
        (B) in the case of a self-employed individual, 
 bears the same ratio to 50 as the excess of--
 ``
            (i) the income of the individual for the 
 taxable year, over
 ``
            (ii) $75,000, bears to
 $50,000.
 ``

    (3) Qualified pension contributions.--The term `qualified 
 pension contributions' means--
 ``
        (A) in the case of a covered non-Federal employer 
 or covered self-employed individual, the contributions 
 made by such employer or individual under sections 
 8423

    (a) and 8432
            (c) of title 5, United States Code,
 ``
        (B) in the case of any other employer, the 
 nonelective contributions made by such employer to a 
 covered retirement program (as defined in 

section 2 of 
 the Pensions for All Act) on behalf of the employees of 
 the employer, and
 ``
            (C) in the case of any other self-employed 
 individual, the contributions made by such individual 
 to a covered retirement program (as so defined) of the 
 individual.
 ``
            (c) Eligible Taxpayers, etc.--For purposes of this section--
 ``

    (1) In general.--The term `eligible taxpayer' means--
 ``
        (A) any covered non-Federal employer making an 
 election under both sections 8423

    (a)

    (4)
        (E)
            (i) and 
 8432
            (c) (4)
        (E)
            (i) of title 5, United States Code not to 
 receive a reduction in employer contributions,
 ``
        (B) any employer which is not a covered non-
 Federal employer,
 ``
            (C) any covered self-employed individual making 
 an election under both sections 8423

    (a)

    (4)
        (E)
            (ii) and 
 8432
            (c) (4)
        (E)
            (ii) of title 5, United States Code not to 
 receive a reduction in contributions, and
 ``
            (D) any self-employed individual who is not a 
 covered self-employed individual.
 ``

    (2) Covered non-federal employer; covered self-employed 
 individual.--The terms `covered non-Federal employer' and 
 `covered self-employed individual' have the respective meanings 
 given such terms by 

section 8401 of title 5, United States 
 Code.
 ``
            (d) Coordination With Other Credits.--
 ``

    (1) Business credit treated as part of general business 
 credit.--In the case of an employer, the credit which (but for 
 this paragraph) would otherwise be allowed under subsection

    (a) for any taxable year shall be treated as a credit listed in 
 

section 38

    (b) for such taxable year (and not allowed under 
 subsection

    (a) ).
 ``

    (2) Denial of double benefit.--No deduction or credit 
 shall be allowed under any other section of this title with 
 respect to contributions to a plan (including the Federal 
 Employees Retirement System under chapter 84 of title 5, United 
 States Code) if credit is allowable with respect to such 
 contributions under subsection

    (a) (determined without regard 
 to this subsection).''.

    (b) Employer Credit To Be Part of General Business Credit.--
Subsection

    (b) of 

section 38 of the Internal Revenue Code of 1986 is 
amended by striking ``plus'' at the end of paragraph

    (40) , by striking 
the period at the end of paragraph

    (41) and inserting ``, plus'', and 
by adding at the end the following new paragraph:
 ``

    (42) in the case of an eligible taxpayer (as defined in 
 

section 36A
            (c) ), the portion of the credit for small employer 
 and self-employed pension contributions to which 

section 36A
            (d) (1) applies.''.
            (c) Conforming Amendment.--

Section 6211

    (b)

    (4)
        (A) of the Internal 
Revenue Code of 1986 is amended by inserting ``, 36A'' after ``36''.
            (d) Clerical Amendment.--The table of sections for subpart C of 
part IV of subchapter A of chapter 1 of the Internal Revenue Code of 
1986 is amended by inserting after the item relating to 

section 36 the 
following new item:

``

Sec. 36A. Credit for small employer and self-employed pension 
 contributions.''.

    (e) Effective Date.--The amendments made by this section shall 
apply to contributions made after the date of the enactment of this 
Act.

SEC. 6. FAILURE TO PROVIDE COVERED RETIREMENT PROGRAM.

    (a) In General.--Chapter 43 of the Internal Revenue Code of 1986 is 
amended by adding at the end the following new section:

``

SEC. 4980J. FAILURE TO MAINTAIN REQUIRED RETIREMENT PROGRAM.

 ``

    (a) General Rule.--
 ``

    (1) Employers.--There is hereby imposed a tax on the 
 failure of an employer either--
 ``
        (A) to make available a covered retirement 
 program to all employees of the employer, or
 ``
        (B) in the case of a covered employer, to make 
 required contributions under sections 8423

    (a) and 
 8432
            (c) of title 5, United States Code with respect to 
 the employees of the employer.
 ``

    (2) Self-employed individuals.--There is hereby imposed a 
 tax on the failure of a self-employed individual either--
 ``
        (A) to participate in a covered retirement 
 program, or
 ``
        (B) in the case of a covered self-employed 
 individual, to make required contributions under 
 sections 8423

    (a) and 8432
            (c) of title 5, United States 
 Code with respect to the individual.
 ``

    (b) Amount of Tax.--
 ``

    (1) In general.--The amount of the tax imposed by 
 subsection

    (a) on any failure with respect to an employee or 
 self-employed individual shall be $10 for each day in the 
 noncompliance period with respect to such failure.
 ``

    (2) Noncompliance period.--For purposes of this section, 
 the term `noncompliance period' means, with respect to any 
 failure, the period--
 ``
        (A) beginning on the date such failure first 
 occurs, and
 ``
        (B) ending on the earlier of--
 ``
            (i) the date such failure is corrected, 
 or
 ``
            (ii) with respect to any employer, the 
 date that is 3 months after the last date on 
 which the employee is employed by the employer.
 ``

    (3) Adjustment for inflation.--
 ``
        (A) In general.--In the case of any failure 
 occurring in a calendar year beginning after 2026, the 
 $10 amount under paragraph

    (1) shall be increased by an 
 amount equal to such dollar amount multiplied by the 
 cost-of-living adjustment determined under 

section 1

    (f)

    (3) for the calendar year determined by 
 substituting `calendar year 2025' for `calendar year 
 2016' in subparagraph
        (A)
            (ii) thereof.
 ``
        (B) Rounding.--If any amount adjusted under 
 subparagraph
        (A) is not a whole dollar amount, such 
 amount shall be rounded to the nearest whole dollar 
 amount.
 ``
            (c) Limitations on Amount of Tax.--
 ``

    (1) Tax not to apply where failure not discovered 
 exercising reasonable diligence.--No tax shall be imposed by 
 subsection

    (a) on any failure during any period for which it is 
 established to the satisfaction of the Secretary that none of 
 the persons referred to in subsection
            (d) knew, nor exercising 
 reasonable diligence would have known, that such failure 
 existed.
 ``

    (2) Overall limitation for unintentional failures.--In 
 the case of failures which are due to reasonable cause and not 
 to willful neglect--
 ``
        (A) General rule.--The tax imposed by subsection

    (a) for failures during the taxable year of the 
 employer or self-employed individual shall not exceed 
 $500,000.
 ``
        (B) Taxable years in the case of certain 
 controlled groups.--For purposes of this subparagraph, 
 if not all persons who are treated as a single employer 
 for purposes of this section have the same taxable 
 year, the taxable years taken into account shall be 
 determined under principles similar to the principles 
 of 

section 1561.
 ``

    (3) Waiver by secretary.--In the case of a failure which 
 is due to reasonable cause and not to willful neglect, the 
 Secretary may waive part or all of the tax imposed by 
 subsection

    (a) to the extent that the payment of such tax would 
 be excessive relative to the failure involved.
 ``
            (d) Employer Liability for Tax.--The employer shall be liable for 
the tax imposed by subsection

    (a)

    (1) on a failure. All employers, 
determined without regard to subsection

    (e)

    (2) , shall be jointly and 
severally liable for the liability of any other employer with which 
they are aggregated under subsection

    (e)

    (2) .
 ``

    (e) 

=== Definitions. ===
-For purposes of this section--
 ``

    (1) Terms relating to covered retirement programs, etc.--
 Any term used in this section which is defined in 

section 2 of 
 the Pensions for All Act has the meaning given such term by 
 such section.
 ``

    (2) Employer.--All employers treated as a single employer 
 under subsection

    (b) ,
            (c) ,
            (m) , or

    (o) of 

section 414 shall be 
 treated as 1 employer.''.

    (b) Clerical Amendment.--The table of sections for chapter 43 of 
the Internal Revenue Code of 1986 is amended by adding at the end the 
following new item:

``

Sec. 4980J. Failure to maintain required retirement program.''.
            (c) Effective Date.--The amendments made by this section shall 
apply to plan years beginning after December 31, 2025.

SEC. 7. PROHIBITION ON THE REDUCTION OF COMPENSATION.

 An employer that employs an employee on or before the date of 
enactment of this Act may not reduce any form of compensation provided 
to the employee due to the requirement imposed by this Act that the 
employee be enrolled in a covered retirement program or FERS.
 <all>