S. 1526 — Retirement Savings for Americans Act of 2025

This section establishes the American Worker Retirement Fund in the Treasury of the United States, consisting of amounts contributed under §105 of this Act and IRC §25F (as added by this Act), increased by net investment earnings or reduced by net losses and payments (including administrative expenses). The Fund remains available without fiscal year limitation (1) for investment per §102, (2) to pay administrative expenses (including financial literacy costs under §201(f)(5)) from net earnings, (3) to make distributions per §106, (4) to make loans per §106(h), and (5) to purchase insurance per §209; each participant has an individual account to which contributions are credited. Fund sums credited to participant accounts are for their exclusive benefit (or beneficiaries'), are the exclusive property of participants, are fully nonforfeitable when contributed (except as provided in IRC §25F(h)), and may not be assigned, alienated, or subjected to most legal process (except participant loans from the Fund), but are subject to (A) legal process to enforce child support or alimony obligations under §459 of the Social Security Act (42 U.S.C. §659), (B) payments required under §109, and (C) federal tax levy under IRC §6331; Fund sums may not be appropriated for other purposes.

This section directs the Board to establish investment policies for the American Worker Retirement Fund—modeled on the Federal Thrift Savings Plan (TSP) investment options under 5 U.S.C. §8438—and to provide participants with six specified investment options: (1) a Government Securities Investment Fund (i.e., U.S. government and GSE bonds); (2) a Fixed-Income Investment Fund (i.e., insurance contracts, CDs, and similar fixed instruments); (3) a Common Stock Index Investment Fund; (4) a Small Capitalization Stock Index Investment Fund; (5) an International Stock Index Investment Fund; and (6) a Life-Cycle Investment Fund (i.e., target date portfolios). The Board may add other options consistent with its fiduciary duties after consulting the Investment Advisory Council. It requires the Executive Director to invest Fund amounts according to participant selections made at least twice per year or, by default, in an age-appropriate Life-Cycle Fund; prohibits exercise of voting rights on Fund securities by participants, the Board, or the Executive Director; and directs the Board to provide quarterly performance reports to participants and former participants (electronically by default, or by mail on request). These reports must include personalized retirement asset and income estimates, projections assuming maximum contributions to receive the full government match tax credit under new IRC §25F, and other decision-making information.

This section establishes eligibility rules for the Fund, providing that qualifying workers may participate upon completing the enrollment process in §104. It further specifies that former participants may not contribute to the Fund under §105(a) but retain ownership of their account balances (including net earnings), subject to withdrawal conditions in §106, and may direct investments in their accounts on the same basis as current participants.

This section establishes a joint enrollment process by the Secretary of the Treasury and the Executive Director for participating employers to enroll qualifying workers in the Fund, incorporating contributions into federal tax withholding where practicable and requiring businesses operating on the Fund's establishment date to complete enrollment within one year. It requires automatic enrollment of qualifying workers at a default 3% contribution rate on compensation unless they opt out (with opt-out election remaining in effect for future years unless reversed), allows businesses to elect enrollment for independent contractor qualifying workers without affecting their classification, and directs procedures for accounts of opt-out workers eligible for other contributions. This section imposes penalties on participating employers for failing to enroll qualifying workers or deposit contributions—2% of the amount for failures of not more than 5 days, 5% for more than 5 but not more than 15 days, and 10% for more than 15 days—plus payment of lost earnings to the Fund; it also directs the Treasury to credit necessary sums to the Fund for this section and section 105(d).

This section authorizes participants to make Roth contributions (i.e., after-tax contributions ineligible for an IRC §219 deduction) to their accounts in the Fund in any pay period up to the participant's compensation for that period, subject to IRC §219(b)(5) limits (excluding contributions under IRC §25F); permits catch-up contributions under IRC §414(v) and contributions of tax refunds under IRC §6402 (disregarding any IRC §25F portion of the refund and treating such contributions as made in the year of overpayment); requires the Secretary of the Treasury and Executive Director to prescribe regulations for a regular contribution program, including modifications and terminations; and provides for crediting of a Government Match Tax Credit under IRC §25F to participant accounts.

This section establishes distribution rules for former participants' accounts in the Fund. It entitles former participants to withdraw the full account balance as (1) an annuity with payment methods prescribed by the Board substantially similar to those under 5 U.S.C. 8434 (i.e., life annuity, joint-and-survivor annuity with spouse or eligible designee, with or without cost-of-living adjustments); (2) a single payment; (3) two or more substantially equal annual payments; or (4) any combination thereof as prescribed by regulation. The section further authorizes partial withdrawals treated as single payments, which may be transferred directly to an existing retirement plan (e.g., IRA); permits changes to prior elections except after annuity contract purchase; provides survivor rights substantially similar to those under 5 U.S.C. 8434 (with spousal account maintenance options, no further contributions, and full disbursement upon spousal death); directs single payments for small account balances as prescribed by regulation; and authorizes loans from participant contributions under regulations equivalent as practicable to Thrift Savings Plan rules (with required cost disclosures).

This section directs the Executive Director to establish and maintain a separate account in the Fund for each participant who makes contributions under section 105(a) or for whom contributions are made by the Secretary of the Treasury under IRC §25F. It defines the balance in each account as the excess of (1) all such contributions plus pro rata allocations of the Fund's net investment earnings and losses (reduced by the participant's share of administrative expenses under section 101(e)) over (2) amounts paid out of the Fund for that participant. The Executive Director must prescribe regulations to implement the allocations.

This section establishes tax treatment for the American Worker Retirement Fund similar to that of the Thrift Savings Fund under 5 U.S.C. 8440 for purposes of the Internal Revenue Code of 1986. (Thus, the fund is treated as a tax-exempt trust under IRC §401(a); contributions and distributions are treated accordingly, with elections to contribute not treated as distributions; it is exempt from nondiscrimination requirements under IRC §§401(k) and 401(m); and contributions are included in wages for Social Security Act §209 and IRC §3121(a) purposes.)

This section applies Thrift Savings Plan (TSP) spousal protections under 5 U.S.C. §8435 and court order provisions under 5 U.S.C. §8467 to the governance of the Fund and to accounts of participants and former participants. It directs the Executive Director to issue regulations establishing spousal protections and survivor rights for such participants that are equivalent, as practically possible, to those provided under the TSP pursuant to chapter 84 of title 5, U.S. Code.

This section establishes the American Worker Retirement Investment Board in the executive branch to oversee investments and management of the Fund and administration of title I of the Act. The five-member board consists of (1) three members appointed by the President, one designated Chair; (2) one member appointed after consideration of the recommendation by the Senate majority leader in consultation with the minority leader; and (3) one member appointed after consideration of the recommendation by the House Speaker in consultation with the minority leader. All appointments require Senate confirmation; members must have substantial experience in financial investments and pension plans and may not be federal officers or employees; terms are four years (staggered initially at four, three, and two years), with vacancies filled for the unexpired term. The board must (1) establish policies for Fund investments, management, and title I administration; (2) hire and compensate the Executive Director; (3) review Fund investment performance and the board's budget; and (4) develop evidence-based financial literacy requirements for participants, including interventions before early withdrawals or loans. The board may adopt a seal, direct the Executive Director (except to specify individual Fund investments, absent a limited exception), remove the Executive Director upon four concurring votes for good cause, and take other necessary actions; members must discharge duties solely in participants' and beneficiaries' interests. The board submits its annual budget to the President and relevant congressional committees for inclusion as a separate item in the President's annual budget under 31 U.S.C. 1105(a) and may submit legislative recommendations to the President and Congress.

This section establishes the American Worker Retirement Plan Advisory Council, composed of seven members appointed by the Chair of the Board—three with experience managing investment funds, two with experience operating small businesses, and two with experience providing investment advice to small businesses and low-income workers. Council members serve four-year terms, with vacancies filled by the Chair for the unexpired portion of the term; the Chair of the Board designates the council head, and the council acts by majority resolution. The council advises the Board and Executive Director on investment policies for the Fund and administration of title I, and performs other duties as directed by the Board regarding title I investment funds.

This section establishes an Executive Director position for the Board, appointed by majority Board vote without regard to competitive service appointment laws and requiring substantial experience, training, and expertise in financial investments and pension benefit plans. The Executive Director must (1) implement Board policies; (2) invest and manage the Fund per Board policies; (3) administer this Act; (4) issue non-fiduciary regulations; (5) meet with the Council as requested; and (6) enforce Board financial literacy requirements. The Executive Director may (1) issue non-fiduciary regulations; (2) appoint personnel; (3) subject to Board approval, procure temporary or intermittent expert and consultant services under 5 U.S.C. §3109 (i.e., without regard to competitive service, classification, or pay rules, at rates potentially exceeding GS-15); (4) make payments from the Fund; (5) pay compensation, per diem, and travel for personnel, experts, and consultants from the Fund; (6) delegate functions to Board employees; and (7) take other necessary actions.

This section directs the Board to develop investment policies for the Fund that provide for (1) prudent investments suitable for accumulating funds for retirement income payments and (2) low administrative costs. The section further requires the Board to select a sufficient number of asset managers to ensure no single manager is responsible for more than the greater of $500 billion or 10% of the Fund's assets and to limit any such contract to a maximum of five years.

This section establishes administrative provisions for the Board, including (1) requiring meetings not less than once each month and at additional times at the call of the Chair; (2) providing that a quorum of three members may perform Board functions and exercise its powers by majority vote (except as provided in section 201(g)(1)(C)) and that vacancies do not impair such authority; and (3) authorizing compensation for each member at the daily rate of basic pay for level IV of the Executive Schedule for days engaged in Board functions, plus travel, per diem, and other necessary expenses while away from home or regular place of business, with payments from the Fund as administrative expenses under section 101(e).

This section establishes fiduciary responsibilities, prohibited transactions, and related definitions applicable to the management of the Fund. Specifically, it defines "account," "adequate consideration" (i.e., prevailing price on a registered national securities exchange under 15 U.S.C. 78f or fair market value determined in good faith), "fiduciary" (including Board members, the Executive Director, and persons with discretionary control over Fund assets), and "party in interest" (including fiduciaries, service providers, participants, labor organizations, and related persons or entities). Fiduciaries must discharge duties solely in the interest of participants and beneficiaries—for providing benefits and defraying reasonable administrative expenses—with the care, skill, prudence, and diligence of a prudent person; by diversifying investments to minimize risk (unless clearly imprudent not to do so, as permitted by section 102); and without maintaining Fund assets outside U.S. district court jurisdiction. The section prohibits fiduciaries from permitting the Fund to engage in specified transactions with parties in interest (e.g., asset transfers, property acquisitions/sales, service exchanges) except for adequate consideration; from self-dealing or acting in their own interest or on behalf of adverse parties; and from receiving personal consideration in Fund-related transactions. The Secretary of Labor may grant conditional or unconditional exemptions from certain restrictions via regulation.

This section requires bonding for each fiduciary and each person handling funds or property of the Fund, except for certain supervised corporations authorized to exercise trust powers or conduct insurance business with combined capital and surplus exceeding a minimum amount (not less than $1 million) prescribed by the Secretary of Labor; a special rule applies to uninsured banks or financial institutions, requiring equivalent state bonding standards. The Secretary of Labor must prescribe bond amounts annually at not less than 10% of funds handled (determined by prior-year actuals or current-year estimates), with minimums of $1,000 and maximums of $500,000 (or higher if determined after notice and hearing). Bonds must protect the Fund against fraud or dishonesty, use acceptable corporate sureties, and follow approved forms (individual, schedule, or blanket); handling Fund funds without bonding is unlawful, as is permitting unbonded persons to do so, and bonded persons are exempt from other bonding laws. The Secretary of Labor must issue regulations to implement these requirements, including any exemptions for persons or classes.

This section authorizes the Secretary of Labor and designated officers to exercise all investigative powers under section 504 of the Employee Retirement Income Security Act of 1974 (29 U.S.C. 1134)—including requiring submission of reports, books, and records; entering premises; inspecting records; and questioning persons—to determine whether any person has violated or is about to violate section 206 or 207. (Thus, these powers, previously available for subchapter violations generally, are explicitly extended to sections 206 and 207.)

This section voids any provision in an agreement or instrument that purports to relieve a fiduciary of responsibility, obligation, or duty under this title. The section further authorizes sums credited to the Fund, in accordance with section 101(e), to pay administrative expenses including, at the Executive Director's discretion, insurance covering potential liability of Fund fiduciaries—without regard to whether the policy permits insurer recourse against a fiduciary for breaching fiduciary obligations.

This section authorizes the Executive Director to issue subpoenas requiring production of designated books, documents, records, electronically stored information, or tangible materials to carry out responsibilities under the Act. The section (1) provides immunity from liability in any court for good faith compliance with such subpoenas; (2) directs district courts to enforce subpoenas, with contempt penalties for disobedience; and (3) requires the Executive Director to prescribe implementing regulations.

This section establishes a new Government Match Tax Credit (IRC §25F) for eligible individuals (i.e., participants in the American Worker Retirement Fund created under the Retirement Savings for Americans Act of 2025). The credit equals (1) 1% of the eligible individual's gross income plus (2) the applicable percentage of contributions to the fund during the taxable year—specifically, 100% of contributions up to 3% of gross income, 50% of contributions exceeding 3% but not 5% of gross income, and 0% of contributions exceeding 5% of gross income. The credit amount is capped at 5% of the phaseout amount (based on U.S. Census Bureau median personal income data for individuals aged 15 and over) and phases out by $75 for each $1,000 (or portion thereof) that gross income exceeds the phaseout amount, which scales by filing status (200% of median income for joint returns, 150% for heads of household, and 100% for others). Instead of reducing tax liability, the credit is treated as an overpayment deposited by the IRS directly into the individual's fund account, with advance payments permitted based on prior-year income and subject to recapture if overpaid; contributions forfeited if withdrawn within six months are returned to the Treasury (with earnings funding fund administration) and excluded from gross income. Contributions to the fund do not qualify for the savers' credit (IRC §25B). The amendments apply to taxable years beginning after [date not specified in provided text].