Mandatory Retirement Savings: All Employees Must Have FERS-Equivalent Plans.
This law mandates that every employer must provide employees with a retirement program comparable to the Federal Employees Retirement System (FERS) or enroll them directly in FERS. This requirement also applies to self-employed individuals. The goal is to ensure universal access to retirement savings, supported by tax credits for small businesses and penalties for non-compliance.
Key points
Universal Coverage: All employers must offer employees a retirement plan (private or FERS) with benefits equivalent to the Federal Employees Retirement System (FERS).
Financial Support: Small businesses (revenue up to $25M) and lower-income self-employed individuals receive a 50% federal subsidy for mandatory employer/self-employed contributions.
Compensation Protection: Employers are prohibited from reducing an employee's current compensation due to the requirement to implement the new retirement program.
Non-Compliance Penalties: Daily financial penalties ($10 per day per employee) are introduced for employers and self-employed individuals who fail to meet the retirement program requirements.
Status:
Introduced
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