Congress mandates retirement plans for all workers—with tax breaks for small business

What it does

This bill requires all private employers and self-employed individuals to offer employees a retirement plan comparable to the federal FERS system, or enroll them directly in FERS. Employers with revenue under $25 million get a 50% reduction in required contributions; those earning more phase in higher contributions. The bill creates a tax credit for small employers and self-employed individuals who contribute to retirement plans, and imposes a $10-per-day penalty on employers or self-employed individuals who fail to comply.

Why we flagged it

The bill's core function is to mandate retirement plan coverage for all private-sector workers and self-employed individuals, with federal FERS as a fallback option. This is a structural labor-market intervention, not a tax cut or deregulation.

What the text implies

• Employers may face significant cash-flow pressure if they choose not to take the contribution reduction, potentially affecting wage growth or hiring in the short term.
• The bill allows employers to switch between FERS and private plans annually, creating administrative complexity and potential for workers to experience coverage gaps during transitions.
• Self-employed individuals with income over $75,000 face a graduated phase-out of contribution reductions, which may discourage business growth or income reporting.
• The $10-per-day penalty ($3,650 annually per employee) is low relative to typical employer payroll, potentially making non-compliance cheaper than compliance for some marginal employers.
• Federal FERS enrollment of private-sector workers will significantly expand the federal pension liability and may require future taxpayer funding if investment returns underperform.

Who it affects

Ordinary workers gain access to guaranteed retirement savings they may lack today, with employer contributions required by law. Small employers receive substantial tax credits and contribution reductions to ease compliance. The penalty structure is modest and includes safe harbors for good-faith efforts, reducing burden on small business.

Who stands to gain

• retirement plan administrators and record-keepers
• financial services firms managing FERS and thrift savings accounts
• small employers (via tax credits and contribution reductions)
• workers without current retirement access

Named in the bill

Federal Employees Retirement System (FERS), Thrift Savings Fund (TSF), Department of Labor (SecDOL), Department of Treasury (SecTreas), Office of Personnel Management (OPM), Internal Revenue Code Section 36A (new), Internal Revenue Code Section 4980J (new), Title 5 USC Chapter 84

Where it stands

11 cosponsors: 11 Democrats.

• Feb 12, 2026 — Introduced · Congress.gov: “Introduced in House”
• Feb 12, 2026 — Referred to House Committee on Education and Workforce and House Committee on Oversight and Government Reform · Congress.gov: “Referred to the Committee on Ways and Means, and in addition to the Committees on Oversight and Government…”

Dates and quoted wording are Congress.gov's action record; the timeline shows status changes, not every procedural step.

Money around this bill

2 lobbying clients named this bill on 2 disclosure filings across 1 quarter, Jun 2026 to Jun 2026. Those filings disclosed $510,000 in lobbying spend. A filing names 32 bills on average, so that figure is what each filing reported, not a share belonging to this bill.

More lobbying clients named this bill than 41% of bills with at least one filing.

Delia Ramirez, the sponsor, reported $383,900 in PAC receipts in the 2026 cycle.

• Ameriprise Financial, Inc. — $280,000 on 1 filing
• United Automobile Aerospace & Agricultural Implement Workers — $230,000 on 1 filing

Lobbying Disclosure Act filings through Jul 20, 2026. A filing shows who paid to lobby on a bill it names, not what changed.