S. 988 — Women's Retirement Protection Act

This section states 12 congressional findings concerning retirement savings gaps, including that 28% of non-retired adults lack defined benefit plans or savings; one-third of private sector workers lack workplace plan access, with only half participating; women aged 65+ have median income at 83% of men’s and face higher poverty rates (14.7% for women aged 80+ vs. 10.3% for men); women comprise two-thirds of low-wage workers less likely to have plans; full-time women lose $398,160 over 40 years due to the pay gap; average 2023 Social Security benefits are $1,638 monthly for women vs. $2,020 for men; only 1 in 5 full-year part-time workers are plan-eligible; defined contribution plans lack spousal protections unlike the Thrift Savings Plan; and qualified domestic relations order fees are rising.

This section establishes additional spousal consent requirements under the Employee Retirement Income Security Act of 1974 (ERISA) for individual account plans (i.e., defined contribution plans such as 401(k)s) not subject to existing spousal consent rules in ERISA section 205, which apply primarily to defined benefit plans. The requirements generally prohibit distributions without spousal consent—provided via written explanation of rights, written spousal acknowledgment of effects witnessed by a plan representative or notary during the 90-day period ending on the distribution date—unless exceptions apply, including: (1) minimum required distributions, certain small distributions under 25% of the account balance (once per account), or distributions in specified annuity forms or with 50% of the entire nonforfeitable benefit transferred to the spouse's individual retirement account; or (2) direct trustee-to-trustee rollovers to protected plans or spouse-designated individual retirement accounts with restrictions on beneficiary changes without further consent. Exceptions to consent also apply if there is no spouse, the marriage is under one year old, or the spouse cannot be located or other circumstances prescribed by regulation; consents are limited to the specific spouse and event. (Thus, the provision expands spousal protections in defined contribution plans, which hold most private-sector retirement assets.)

This section applies the amendments made by section 3—increasing spousal protections under defined contribution plans (i.e., 401(k) plans and similar)—to distributions and rollover contributions made in plan years beginning after one year after the date of enactment. It further provides plan amendment relief, under which conforming amendments to plans or annuity contracts made pursuant to those changes (or related regulations) by the last day of the first plan year beginning on or after three years after that date (five years for governmental plans) are treated as having been in effect retroactively from the effective date specified by the plan through the amendment adoption date (or earlier).

This section requires any person offering a retirement financial product or service (i.e., financial product or service provider) to a consumer (i.e., any person purchasing or acquiring goods, products, services, or credit related to retirement or later-life economic security) to include an easily accessible link to the Bureau of Consumer Financial Protection (CFPB) website for CFPB- or other federal agency-produced resources on retirement planning and later-life economic security. The Financial Literacy and Education Commission determines and publishes the appropriate link, format, and description.

This section establishes a competitive grant program administered by the Secretary of Labor, through the Women's Bureau, to award grants of at least $250,000 to community-based organizations with experience serving working-age or retired women. Grants must be used for financial literacy education, outreach, awareness, and counseling on retirement planning and consumer, economic, and personal financial concepts to promote women's secure retirement. The section authorizes $100 million for FY2026 and each succeeding fiscal year.

This section establishes a competitive grant program, administered by the Secretary of Labor through the Director of the Women’s Bureau and the Assistant Secretary of the Employee Benefits Security Administration, to assist low-income women and survivors of domestic violence in obtaining and effectuating qualified domestic relations orders (QDRs) (i.e., court orders dividing retirement plan benefits in divorce). Grants of at least $250,000 are awarded to community-based organizations with experience serving women’s financial and retirement needs for program development. Authorizes $100 million for FY2026 and each succeeding fiscal year.