Pensions for All Act

This bill requires every employer to provide their employees with a retirement program that has benefits comparable to the Federal Employees Retirement System (FERS) or to have their employees participate in FERS. It also sets rules for self-employed individuals. The bill defines key terms, creates requirements for offering retirement plans, allows non-Federal employees and self-employed individuals to join FERS, provides a tax credit for small employers and self-employed people, and imposes a tax penalty for failing to comply.

Sec. 2, Definitions: Defines a "covered retirement program" as a retirement plan other than FERS that the Secretary of Labor decides offers comparable benefits. "Employee" and "employer" use the definitions from the Employee Retirement Income Security Act of 1974. "FERS" is the Federal Employees Retirement System. "Secretary" means the Secretary of Labor.

Sec. 3, Requirement to provide a retirement plan equivalent to FERS or to participate in FERS: Each employer must either offer a covered retirement program to all employees or notify the Secretary that their employees will join FERS. Self-employed individuals must either enroll in a covered retirement program or notify the Secretary they will participate in FERS. Employers and self-employed individuals can switch between options at least once a year.

Sec. 4, Participation of non-Federal employees and self-employed individuals in FERS: Amends the U.S. Code to allow non-Federal employees and self-employed individuals to participate in FERS. It defines terms like "covered non-Federal employer," "covered non-Federal employee," and "covered self-employed individual." It sets rules for creditable service, employee and employer contributions, and Thrift Savings Plan contributions. Employer contribution amounts are reduced for smaller employers based on annual revenue, and for self-employed individuals based on income, with specific formulas provided.

Sec. 5, Credit for small employer and self-employed pension contributions: Creates a new tax credit for eligible taxpayers equal to a percentage of qualified pension contributions. The credit percentage is 50% but is reduced for larger employers (based on gross receipts over $25 million) and higher-income self-employed individuals (based on income over $75,000). The credit applies to contributions made under FERS or to a covered retirement program. Employers can treat this credit as part of the general business credit.

Sec. 6, Failure to provide covered retirement program: Imposes a tax of $10 per day per employee or self-employed individual for failing to offer a covered retirement program or make required FERS contributions. The tax is limited to $500,000 per year for unintentional failures and can be waived by the Secretary for reasonable cause. The tax applies to plan years beginning after December 31, 2025.

Sec. 7, Prohibition on the reduction of compensation: Employers cannot reduce any form of compensation for employees hired on or before the bill's enactment date because of the requirement to enroll them in a covered retirement program or FERS.