Pensions for All Act
Summary
The Pensions for All Act mandates that all employers provide a retirement program equivalent to the Federal Employees Retirement System (FERS) or enroll their employees in FERS. Self-employed individuals would also be required to participate in either a comparable retirement program or FERS. The bill amends Title 5 of the United States Code to include non-federal employees and self-employed individuals in FERS, and it modifies employer and employee contribution requirements.
Expected Effects
This act would significantly expand retirement coverage to all American workers, potentially increasing retirement security. It also introduces tax credits for small employers and self-employed individuals to offset the costs of providing retirement benefits. The act also imposes penalties on employers who fail to comply with the retirement program requirements.
Potential Benefits
- Universal retirement coverage, ensuring all employees and self-employed individuals have access to retirement savings.
- Potential for increased retirement savings and financial security for individuals.
- Tax credits for small employers and self-employed individuals, easing the financial burden of providing retirement benefits.
- Standardization of retirement plans, potentially simplifying administration for employers.
- Reduced reliance on social safety nets in the long term as more individuals have retirement savings.
Potential Disadvantages
- Increased costs for employers, potentially leading to reduced wages or hiring freezes.
- Complexity in administering FERS for non-federal employees and self-employed individuals.
- Potential strain on the FERS system due to increased enrollment.
- Possible reduction in investment choices for employees if forced into FERS.
- Penalties for non-compliance could disproportionately affect small businesses.
Most Disadvantaged Areas:
Constitutional Alignment
The Pensions for All Act aligns with the Constitution's mandate to "promote the general Welfare" (Preamble). Congress has the power to tax and spend for the general welfare. The expansion of FERS and the imposition of requirements on employers could be viewed under the Commerce Clause (Article I, Section 8, Clause 3), as it regulates interstate commerce by affecting employment and benefits. However, the extent of federal intervention into private employer benefits could raise questions about federalism and the balance of power between the federal government and the states.
Impact Assessment: Things You Care About ⓘ
This action has been evaluated across 19 key areas that matter to you. Scores range from 1 (highly disadvantageous) to 5 (highly beneficial).