This bill expands access to pension-linked emergency savings accounts, a feature created under earlier retirement law that lets workers set aside emergency funds within their employer-sponsored retirement plans. It broadens who can participate by defining eligibility based on a plan's own age, service, and other requirements, rather than more restrictive federal criteria, and it doubles the maximum account balance from $2,500 to $5,000. These changes apply to both private-sector retirement plans under federal labor law and tax-advantaged plans under the tax code, and they take effect for taxable years beginning after December 31, 2026. The bill also renews and expands funding for the Employee Ownership Initiative grant program, authorizing discretionary funding through 2035 with annual cost-of-living adjustments starting in 2030, plus guaranteed mandatory funding between 2027 and 2032 ranging from $8 million to $18 million per year. Workers saving through employer retirement plans, employers who sponsor these plans, and organizations promoting employee ownership programs would all be affected by these changes.
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