Congress mandates private pensions, but the bill's complexity hides real costs.
S. 2335 — Pensions for All Act · Filed by Bernie Sanders (I-VT) · Introduced Jul 17, 2025 · Referred to committee
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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 get tax credits (50% of contributions for small businesses under $25M revenue) and face a $10/day penalty per employee for non-compliance. The bill expands FERS to cover private-sector workers and self-employed people, funded partly by employer contributions and partly by federal subsidies through the tax code.
Why we flagged it
The bill's core function is to mandate private-sector pension coverage (FERS or equivalent) for all workers and self-employed individuals, funded through employer contributions, employee payroll deductions, and federal tax credits. It is a structural expansion of the federal retirement system into the private economy.
What the text implies
- The bill creates a new federal liability for private employers (joint and several liability under section 414 aggregation rules), potentially exposing small business groups to unlimited pension-related penalties.
- Self-employed individuals earning over $75K face mandatory FERS contributions that may exceed what they would pay into a private plan, effectively a hidden tax increase on independent workers.
The full analysis lists 5 implications of this text.
Who stands to gain
Federal Employees Retirement System (FERS) fund; Thrift Savings Plan (TSP) administrators; Small employers (via 50% tax credit on contributions)