TITLE III 
SEC. 301. SENSE OF CONGRESS. 
It is the sense of Congress that— 
(1) it is in the best national and homeland se-
curity interests of the United States for Federal 
agencies to retain the specialized knowledge and ex-
perience of individuals who suffer an injury or illness 
while serving in a covered position (as defined under 
the amendments made by this Act); and 
(2) Federal agencies should ensure, to the 
greatest extent possible, that an individual who can 
no longer carry out the duties of a covered position, 
and is reappointed to a position in the civil service 
that is not a covered position, is reappointed within 
the same Federal agency, in the same geographic lo-
cation, and at a level of pay commensurate to the 
position which the individual held immediately prior 
to such injury or illness. 
SEC. 302. RETIREMENT FOR CERTAIN EMPLOYEES. 
(a) CSRS.—Section 8336(c) of title 5, United States 
Code, is amended by adding at the end the following: 
‘‘(3)(A) In this paragraph— 
‘‘(i) the term ‘affected individual’ means 
an individual covered under this subchapter 
who— 
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‘‘(I) is performing service in a covered 
position; 
‘‘(II) while on duty, becomes ill or is 
injured as a direct result of the perform-
ance of such duties before the date on 
which the individual becomes entitled to an 
annuity under paragraph (1) of this sub-
section or subsection (e), (m), or (n), as 
applicable; 
‘‘(III) because of the illness or injury 
described in subclause (II), is permanently 
unable to render useful and efficient serv-
ice in the employee’s covered position, as 
determined by the agency in which the in-
dividual was serving when such individual 
incurred the illness or injury; and 
‘‘(IV) is appointed to a position in the 
civil service that— 
‘‘(aa) is not a covered position; 
and 
‘‘(bb) is within an agency that 
regularly appoints individuals to su-
pervisory or administrative positions 
related to the activities of the former 
covered position of the individual; 
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‘‘(ii) the term ‘covered position’ means a 
position as a law enforcement officer, customs 
and border protection officer, firefighter, air 
traffic controller, nuclear materials courier, 
member of the Capitol Police, or member of the 
Supreme Court Police. 
‘‘(B) Unless an affected individual files an 
election described in subparagraph (E), cred-
itable service by the affected individual in a po-
sition described in subparagraph (A)(i)(IV) 
shall be treated as creditable service in a cov-
ered position for purposes of this chapter and 
determining the amount to be deducted and 
withheld from the pay of the affected individual 
under section 8334. 
‘‘(C) Subparagraph (B) shall only apply if 
the affected employee transitions to a position 
described in subparagraph (A)(i)(IV) without a 
break in service exceeding 3 days. 
‘‘(D) The service of an affected individual 
shall no longer be eligible for treatment under 
subparagraph (B) if such service occurs after 
the individual— 
‘‘(i) is transferred to a supervisory or 
administrative position related to the ac-
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tivities of the former covered position of 
the individual; or 
‘‘(ii) meets the age and service re-
quirements that would subject the indi-
vidual to mandatory separation under sec-
tion 8335 if such individual had remained 
in the former covered position. 
‘‘(E) In accordance with procedures estab-
lished by the Director of the Office of Personnel 
Management, an affected individual may file an 
election to have any creditable service per-
formed by the affected individual treated in ac-
cordance with this chapter without regard to 
subparagraph (B). 
‘‘(F) Nothing in this paragraph shall be 
construed to apply to such affected individual 
any other pay-related laws or regulations appli-
cable to a covered position.’’. 
(b) FERS.— 
(1) IN GENERAL.—Section 8412(d) of title 5, 
United States Code, is amended— 
(A) by redesignating paragraphs (1) and 
(2) as subparagraphs (A) and (B), respectively; 
(B) by inserting ‘‘(1)’’ before ‘‘An em-
ployee’’; and 
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(C) by adding at the end the following: 
‘‘(2)(A) In this paragraph— 
‘‘(i) the term ‘affected individual’ means 
an individual covered under this chapter who— 
‘‘(I) is performing service in a covered 
position; 
‘‘(II) while on duty, becomes ill or is 
injured as a direct result of the perform-
ance of such duties before the date on 
which the individual becomes entitled to an 
annuity under paragraph (1) of this sub-
section or subsection (e), as applicable; 
‘‘(III) because of the illness or injury 
described in subclause (II), is permanently 
unable to render useful and efficient serv-
ice in the employee’s covered position, as 
determined by the agency in which the in-
dividual was serving when such individual 
incurred the illness or injury; and 
‘‘(IV) is appointed to a position in the 
civil service that— 
‘‘(aa) is not a covered position; 
and 
‘‘(bb) is within an agency that 
regularly appoints individuals to su-
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pervisory or administrative positions 
related to the activities of the former 
covered position of the individual; 
‘‘(ii) the term ‘covered position’ means a 
position as a law enforcement officer, customs 
and border protection officer, firefighter, air 
traffic controller, nuclear materials courier, 
member of the Capitol Police, or member of the 
Supreme Court Police. 
‘‘(B) Unless an affected individual files an 
election described in subparagraph (E), cred-
itable service by the affected individual in a po-
sition described in subparagraph (A)(i)(IV) 
shall be treated as creditable service in a cov-
ered position for purposes of this chapter and 
determining the amount to be deducted and 
withheld from the pay of the affected individual 
under section 8422. 
‘‘(C) Subparagraph (B) shall only apply if 
the affected employee transitions to a position 
described in subparagraph (A)(i)(IV) without a 
break in service exceeding 3 days. 
‘‘(D) The service of an affected individual 
shall no longer be eligible for treatment under 
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subparagraph (B) if such service occurs after 
the individual— 
‘‘(i) is transferred to a supervisory or 
administrative position related to the ac-
tivities of the former covered position of 
the individual; or 
‘‘(ii) meets the age and service re-
quirements that would subject the indi-
vidual to mandatory separation under sec-
tion 8425 if such individual had remained 
in the former covered position. 
‘‘(E) In accordance with procedures estab-
lished by the Director of the Office of Personnel 
Management, an affected individual may file an 
election to have any creditable service per-
formed by the affected individual treated in ac-
cordance with this chapter without regard to 
subparagraph (B). 
‘‘(F) Nothing in this paragraph shall be 
construed to apply to such affected individual 
any other pay-related laws or regulations appli-
cable to a covered position.’’. 
(2) TECHNICAL
AND
CONFORMING
AMEND-
MENTS.— 
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(A) Chapter 84 of title 5, United States 
Code, is amended— 
(i) in section 8414(b)(3), by inserting 
‘‘(1)’’ after ‘‘subsection (d)’’; 
(ii) in section 8415— 
(I) in subsection (e), in the mat-
ter preceding paragraph (1), by in-
serting ‘‘(1)’’ after ‘‘subsection (d)’’; 
and 
(II) in subsection (h)(2)(A), by 
striking 
‘‘(d)(2)’’ 
and 
inserting 
‘‘(d)(1)(B)’’; 
(iii) in section 8421(a)(1), by insert-
ing ‘‘(1)’’ after ‘‘(d)’’; 
(iv) in section 8421a(b)(4)(B)(ii), by 
inserting ‘‘(1)’’ after ‘‘section 8412(d)’’; 
(v) in section 8425, by inserting ‘‘(1)’’ 
after ‘‘section 8412(d)’’ each place it ap-
pears; and 
(vi) in section 8462(c)(3)(B)(ii), by 
inserting ‘‘(1)’’ after ‘‘subsection (d)’’. 
(B) Title VIII of the Foreign Service Act 
of 1980 (22 U.S.C. 4041 et seq.) is amended— 
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(i) in section 805(d)(5) (22 U.S.C. 
4045(d)(5)), by inserting ‘‘(1)’’ after ‘‘or 
8412(d)’’; and 
(ii) 
in 
section 
812(a)(2)(B) 
(22 
U.S.C. 4052(a)(2)(B)), by inserting ‘‘(1)’’ 
after ‘‘or 8412(d)’’. 
(c) CIA EMPLOYEES.—Section 302 of the Central In-
telligence Agency Retirement Act (50 U.S.C. 2152) is 
amended by adding at the end the following: 
‘‘(d) EMPLOYEES DISABLED ON DUTY.— 
‘‘(1) DEFINITIONS.—In this subsection— 
‘‘(A) the term ‘affected employee’ means 
an employee of the Agency covered under sub-
chapter II of chapter 84 of title 5, United 
States Code, who— 
‘‘(i) is performing service in a position 
designated under subsection (a); 
‘‘(ii) while on duty in the position des-
ignated under subsection (a), becomes ill 
or is injured as a direct result of the per-
formance of such duties before the date on 
which the employee becomes entitled to an 
annuity under section 233 of this Act or 
section 8412(d)(1) of title 5, United States 
Code; 
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‘‘(iii) because of the illness or injury 
described in clause (ii), is permanently un-
able to render useful and efficient service 
in the employee’s covered position, as de-
termined by the Director; and 
‘‘(iv) is appointed to a position in the 
civil service that is not a covered position 
but is within the Agency; and 
‘‘(B) the term ‘covered position’ means a 
position as— 
‘‘(i) a law enforcement officer de-
scribed in section 8331(20) or 8401(17) of 
title 5, United States Code; 
‘‘(ii) a customs and border protection 
officer described in section 8331(31) or 
8401(36) of title 5, United States Code; 
‘‘(iii) a firefighter described in section 
8331(21) or 8401(14) of title 5, United 
States Code; 
‘‘(iv) an air traffic controller described 
in section 8331(30) or 8401(35) of title 5, 
United States Code; 
‘‘(v) a nuclear materials courier de-
scribed in section 8331(27) or 8401(33) of 
title 5, United States Code; 
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‘‘(vi) a member of the United States 
Capitol Police; 
‘‘(vii) a member of the Supreme Court 
Police; 
‘‘(viii) an affected employee; or 
‘‘(ix) a special agent described in sec-
tion 804(15) of the Foreign Service Act of 
1980 (22 U.S.C. 4044(15)). 
‘‘(2) TREATMENT
OF
SERVICE
AFTER
DIS-
ABILITY.—Unless an affected employee files an elec-
tion described in paragraph (3), creditable service by 
the affected employee in a position described in 
paragraph (1)(A)(iv) shall be treated as creditable 
service in a covered position for purposes of this Act 
and chapter 84 of title 5, United States Code, in-
cluding eligibility for an annuity under section 233 
of this Act or 8412(d)(1) of title 5, United States 
Code, and determining the amount to be deducted 
and withheld from the pay of the affected employee 
under section 8422 of title 5, United States Code. 
‘‘(3) BREAK IN SERVICE.—Paragraph (2) shall 
only apply if the affected employee transitions to a 
position described in paragraph (1)(A)(iv) without a 
break in service exceeding 3 days. 
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‘‘(4) LIMITATION
ON
TREATMENT
OF
SERV-
ICE.—The service of an affected employee shall no 
longer be eligible for treatment under paragraph (2) 
if such service occurs after the employee is trans-
ferred to a supervisory or administrative position re-
lated to the activities of the former covered position 
of the employee. 
‘‘(5) OPT OUT.—An affected employee may file 
an election to have any creditable service performed 
by the affected employee treated in accordance with 
chapter 84 of title 5, United States Code, without 
regard to paragraph (2).’’. 
(d) FOREIGN
SERVICE
RETIREMENT
AND
DIS-
ABILITY SYSTEM.—Section 806(a)(6) of the Foreign Serv-
ice Act of 1980 (22 U.S.C. 4046(a)(6)) is amended by 
adding at the end the following: 
‘‘(D)(i) In this subparagraph— 
‘‘(I) the term ‘affected special agent’ 
means an individual covered under this 
subchapter who— 
‘‘(aa) is performing service as a 
special agent; 
‘‘(bb) while on duty as a special 
agent, becomes ill or is injured as a 
direct result of the performance of 
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such duties before the date on which 
the individual becomes entitled to an 
annuity under section 811; 
‘‘(cc) because of the illness or in-
jury described in item (bb), is perma-
nently unable to render useful and ef-
ficient service in the employee’s cov-
ered position, as determined by the 
Secretary; and 
‘‘(dd) is appointed to a position 
in the Foreign Service that is not a 
covered position; and 
‘‘(II) the term ‘covered position’ 
means a position as— 
‘‘(aa) a law enforcement officer 
described in section 8331(20) or 
8401(17) of title 5, United States 
Code; 
‘‘(bb) a customs and border pro-
tection officer described in section 
8331(31) or 8401(36) of title 5, 
United States Code; 
‘‘(cc) a firefighter described in 
section 8331(21) or 8401(14) of title 
5, United States Code; 
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‘‘(dd) an air traffic controller de-
scribed 
in 
section 
8331(30) 
or 
8401(35) of title 5, United States 
Code; 
‘‘(ee) a nuclear materials courier 
described in section 8331(27) or 
8401(33) of title 5, United States 
Code; 
‘‘(ff) a member of the United 
States Capitol Police; 
‘‘(gg) a member of the Supreme 
Court Police; 
‘‘(hh) an employee of the Agency 
designated under section 302(a) of the 
Central Intelligence Agency Retire-
ment Act (50 U.S.C. 2152(a)); or 
‘‘(ii) a special agent. 
‘‘(ii) Unless an affected special agent 
files an election described in clause (iv), 
creditable service by the affected special 
agent in a position described in clause 
(i)(I)(dd) shall be treated as creditable 
service as a special agent for purposes of 
this subchapter, including determining the 
amount to be deducted and withheld from 
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the pay of the individual under section 
805. 
‘‘(iii) Clause (ii) shall only apply if the 
special agent transitions to a position de-
scribed in clause (i)(I)(dd) without a break 
in service exceeding 3 days. 
‘‘(iv) The service of an affected em-
ployee shall no longer be eligible for treat-
ment under clause (ii) if such service oc-
curs after the employee is transferred to a 
supervisory or administrative position re-
lated to the activities of the former covered 
position of the employee. 
‘‘(v) In accordance with procedures 
established by the Secretary, an affected 
special agent may file an election to have 
any creditable service performed by the af-
fected special agent treated in accordance 
with this subchapter, without regard to 
clause (ii).’’. 
(e) IMPLEMENTATION.— 
(1) OFFICE
OF
PERSONNEL
MANAGEMENT.— 
Not later than 1 year after the date of enactment 
of this Act, the Director of the Office of Personnel 
Management shall promulgate regulations to carry 
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out the amendments made by subsections (a) and 
(b). 
(2) CIA EMPLOYEES.—The Director of the 
Central Intelligence Agency shall promulgate regula-
tions to carry out the amendment made by sub-
section (c). 
(3) FOREIGN SERVICE RETIREMENT AND DIS-
ABILITY SYSTEM.—The Secretary of State shall pro-
mulgate regulations to carry out the amendment 
made by subsection (d). 
(4) AGENCY CERTIFICATION.—The regulations 
promulgated to carry out the amendments made by 
this Act shall include a requirement that the head 
of the agency at which an affected employee or spe-
cial agent (as the case may be) incurred the applica-
ble illness or injury certifies that such illness or in-
jury— 
(A) was incurred in the course of the em-
ployee’s or special agent’s duties; and 
(B) permanently precludes the employee or 
special agent from rendering useful and effi-
cient service in the covered position but would 
not preclude the employee or special agent from 
continuing to serve in the Federal service. 
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(5) AGENCY
REAPPOINTMENT.—The regula-
tions promulgated to carry out the amendments 
made by this Act shall ensure that, to the greatest 
extent possible, the head of each agency appoints af-
fected employees or special agents to supervisory or 
administrative positions related to the activities of 
the former covered position of the employee or spe-
cial agent. 
(6) TREATMENT OF SERVICE.—The regulations 
promulgated to carry out the amendments made by 
this Act shall ensure that the creditable service of an 
affected employee or special agent (as the case may 
be) that is not in a covered position pursuant to an 
election made under such amendments shall be 
treated as the same type of service as the covered 
position in which the employee or agent suffered the 
qualifying illness or injury. 
(f) EFFECTIVE DATE; APPLICABILITY.—The amend-
ments made by this Act— 
(1) shall take effect on the date of enactment 
of this Act; and 
(2) shall apply to an individual who suffers an 
illness 
or 
injury 
described 
in 
section 
8336(c)(3)(A)(i)(II) or section 8412(d)(2)(A)(i)(II) 
of title 5, United States Code, as amended by this 
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section, section 302(d)(1)(A)(ii) of the Central Intel-
ligence Agency Retirement Act, as amended by this 
section, or section 806(a)(6)(D)(i)(I)(bb) of the For-
eign Service Act of 1980, as amended by this sec-
tion, on or after the date that is 2 years after the 
date of enactment of this Act. 
TITLE IV 
SEC. 401. EXPANDING AUTOMATIC ENROLLMENT IN RE-
TIREMENT PLANS. 
(a) IN GENERAL.—Subpart B of part I of subchapter 
D of chapter 1 of the Internal Revenue Code of 1986 is 
amended by inserting after section 414 the following new 
section: 
‘‘SEC. 414A. REQUIREMENTS RELATED TO AUTOMATIC EN-
ROLLMENT. 
‘‘(a) IN GENERAL.—Except as otherwise provided in 
this section— 
‘‘(1) an arrangement shall not be treated as a 
qualified cash or deferred arrangement described in 
section 401(k) unless such arrangement meets the 
automatic enrollment requirements of subsection (b), 
and 
‘‘(2) an annuity contract otherwise described in 
section 403(b)(1) which is purchased under a salary 
reduction agreement shall not be treated as de-
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pursuant to such arrangement, and for which no in-
vestment is elected by the participant, are invested 
in accordance with the requirements of section 
2550.404c-5 of title 29, Code of Federal Regulations 
(or any successor regulations). 
‘‘(c) EXCEPTIONS.—For purposes of this section— 
‘‘(1) SIMPLE PLANS.—Subsection (a) shall not 
apply to any simple plan (within the meaning of sec-
tion 401(k)(11)). 
‘‘(2) EXCEPTION
FOR
PLANS
OR
ARRANGE-
MENTS ESTABLISHED BEFORE ENACTMENT OF SEC-
TION.— 
‘‘(A) IN
GENERAL.—Subsection (a) shall 
not apply to— 
‘‘(i) any qualified cash or deferred ar-
rangement established before the date of 
the enactment of this section, or 
‘‘(ii) any annuity contract purchased 
under a plan established before the date of 
the enactment of this section. 
‘‘(B) 
POST-ENACTMENT
ADOPTION
OF 
MULTIPLE
EMPLOYER
PLAN.—Subparagraph 
(A) shall not apply in the case of an employer 
adopting after such date of enactment a plan 
maintained by more than one employer, and 
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subsection (a) shall apply with respect to such 
employer as if such plan were a single plan. 
‘‘(3) EXCEPTION
FOR
GOVERNMENTAL
AND 
CHURCH PLANS.—Subsection (a) shall not apply to 
any governmental plan (within the meaning of sec-
tion 414(d)) or any church plan (within the meaning 
of section 414(e)). 
‘‘(4) EXCEPTION FOR NEW AND SMALL BUSI-
NESSES.— 
‘‘(A) 
NEW
BUSINESS.—Subsection 
(a) 
shall not apply to any qualified cash or deferred 
arrangement, or any annuity contract pur-
chased under a plan, while the employer main-
taining such plan (and any predecessor em-
ployer) has been in existence for less than 3 
years. 
‘‘(B) SMALL BUSINESSES.—Subsection (a) 
shall not apply to any qualified cash or deferred 
arrangement, or any annuity contract pur-
chased under a plan, earlier than the date that 
is 1 year after the close of the first taxable year 
with respect to which the employer maintaining 
the plan normally employed more than 10 em-
ployees. 
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‘‘(C) TREATMENT
OF
MULTIPLE
EM-
PLOYER PLANS.—In the case of a plan main-
tained by more than 1 employer, subparagraphs 
(A) and (B) shall be applied separately with re-
spect to each such employer, and all such em-
ployers to which subsection (a) applies (after 
the application of this paragraph) shall be 
treated as maintaining a separate plan for pur-
poses of this section.’’. 
(b) CLERICAL AMENDMENT.—The table of sections 
for subpart B of part I of subchapter D of chapter 1 of 
such Code is amended by inserting after the item relating 
to section 414 the following new item: 
‘‘Sec. 414A. Requirements related to automatic enrollment.’’. 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply to plan years beginning after De-
cember 31, 2025. 
SEC. 402. MODIFICATION OF CREDIT FOR SMALL EM-
PLOYER PENSION PLAN STARTUP COSTS. 
(a) INCREASE IN CREDIT PERCENTAGE FOR SMALL-
ER EMPLOYERS.—Section 45E(e) of the Internal Revenue 
Code of 1986 is amended by adding at the end the fol-
lowing new paragraph: 
‘‘(4) INCREASED CREDIT FOR CERTAIN SMALL 
EMPLOYERS.—In the case of an employer which 
would be an eligible employer under subsection (c) if 
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section 408(p)(2)(C)(i) was applied by substituting 
‘50 employees’ for ‘100 employees’, subsection (a) 
shall be applied by substituting ‘100 percent’ for ‘50 
percent’.’’. 
(b) ADDITIONAL CREDIT FOR EMPLOYER CONTRIBU-
TIONS BY CERTAIN SMALL EMPLOYERS.—Section 45E of 
such Code, as amended by subsection (a), is amended by 
adding at the end the following new subsection: 
‘‘(f) ADDITIONAL CREDIT
FOR EMPLOYER CON-
TRIBUTIONS BY CERTAIN ELIGIBLE EMPLOYERS.— 
‘‘(1) IN GENERAL.—In the case of an eligible 
employer, the credit allowed for the taxable year 
under subsection (a) (determined without regard to 
this subsection) shall be increased by an amount 
equal to the applicable percentage of employer con-
tributions (other than any elective deferrals (as de-
fined in section 402(g)(3)) by the employer to an eli-
gible employer plan (other than a defined benefit 
plan (as defined in section 414(j))). 
‘‘(2) LIMITATIONS.— 
‘‘(A) DOLLAR
LIMITATION.—The amount 
determined under paragraph (1) (before the ap-
plication of subparagraph (B)) with respect to 
any employee of the employer shall not exceed 
$1,000. 
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‘‘(B) CREDIT PHASE-IN.—In the case of 
any eligible employer which had for the pre-
ceding taxable year more than 50 employees, 
the amount determined under paragraph (1) 
(without regard to this subparagraph) shall be 
reduced by an amount equal to the product 
of— 
‘‘(i) the amount otherwise so deter-
mined under paragraph (1), multiplied by 
‘‘(ii) a percentage equal to 2 percent-
age points for each employee of the em-
ployer for the preceding taxable year in ex-
cess of 50 employees. 
‘‘(3) APPLICABLE PERCENTAGE.—For purposes 
of this section, the applicable percentage for the tax-
able year during which the eligible employer plan is 
established with respect to the eligible employer shall 
be 100 percent, and for taxable years thereafter 
shall be determined under the following table: 
‘‘In the case of the following 
taxable 
year 
beginning 
after the taxable year 
during which plan is es-
tablished with respect to 
the eligible employer: 
The applicable percentage shall 
be: 
1st ................................................................................................
100% 
2nd ...............................................................................................
75% 
3rd ...............................................................................................
50% 
4th ................................................................................................
25% 
Any taxable year thereafter .........................................................
0% 
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‘‘(4) DETERMINATION OF ELIGIBLE EMPLOYER; 
NUMBER OF EMPLOYEES.—For purposes of this sub-
section, whether an employer is an eligible employer 
and the number of employees of an employer shall 
be determined under the rules of subsection (c), ex-
cept that paragraph (2) thereof shall only apply to 
the taxable year during which the eligible employer 
plan to which this section applies is established with 
respect to the eligible employer.’’. 
(c) 
DISALLOWANCE
OF
DEDUCTION.—Section 
45E(e)(2) of such Code is amended to read as follows: 
‘‘(2) DISALLOWANCE OF DEDUCTION.—No de-
duction shall be allowed— 
‘‘(A) for that portion of the qualified start-
up costs paid or incurred for the taxable year 
which is equal to so much of the portion of the 
credit determined under subsection (a) as is 
properly allocable to such costs, and 
‘‘(B) for that portion of the employer con-
tributions by the employer for the taxable year 
which is equal to so much of the credit increase 
determined under subsection (f) as is properly 
allocable to such contributions.’’. 
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(d) EFFECTIVE DATE.—The amendments made by 
this section shall apply to taxable years beginning after 
December 31, 2024. 
SEC. 403. PROMOTION OF SAVER’S CREDIT. 
(a) IN GENERAL.—The Secretary of the Treasury 
shall take such steps as the Secretary determines are nec-
essary and appropriate to increase public awareness of the 
credit provided under section 25B of the Internal Revenue 
Code of 1986. 
(b) REPORT TO CONGRESS.— 
(1) IN GENERAL.—Not later than 90 days after 
the date of the enactment of this Act, the Secretary 
shall provide a report to Congress to summarize the 
anticipated promotion efforts of the Treasury under 
subsection (a). 
(2) CONTENTS.—Such report shall include— 
(A) a description of plans for— 
(i) the development and distribution 
of digital and print materials, including the 
distribution of such materials to States for 
participants in State facilitated retirement 
savings programs; and 
(ii) the translation of such materials 
into the 10 most commonly spoken lan-
guages in the United States after English 
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(as determined by reference to the most re-
cent American Community Survey of the 
Bureau of the Census); and 
(B) such other information as the Sec-
retary determines is necessary 
SEC. 404. ENHANCEMENT OF SAVER’S CREDIT. 
(a) 50 PERCENT CREDIT RATE.—Section 25B(a) of 
the Internal Revenue Code of 1986 is amended by striking 
‘‘the applicable percentage’’ and inserting ‘‘50 percent’’. 
(b) ADJUSTED GROSS INCOME PHASEOUTS.—Section 
25B(b) of such Code is amended to read as follows: 
‘‘(b) LIMITATION.—For purposes of this section— 
‘‘(1) IN GENERAL.—The amount of credit al-
lowable under subsection (a) (determined without re-
gard to this subsection) shall be reduced (but not 
below zero) by an amount which bears the same 
ratio to the credit otherwise so allowable as— 
‘‘(A) the excess (if any) of— 
‘‘(i) adjusted gross income of the tax-
payer, over 
‘‘(ii) the threshold amount, bears to 
‘‘(B) the phaseout amount. 
‘‘(2) THRESHOLD AMOUNT.—The term ‘thresh-
old amount’ means— 
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‘‘(A) in the case of a joint return or a sur-
viving spouse (as defined in section 2(a)), 
$48,000, 
‘‘(B) in the case of a head of household, 75 
percent of the amount in effect for the taxable 
year under subparagraph (A), and 
‘‘(C) in the case of any other individual, 50 
percent of the amount in effect for the taxable 
year under subparagraph (A). 
‘‘(3) PHASEOUT AMOUNT.—The term ‘phaseout 
amount’ means— 
‘‘(A) in the case of a joint return or a sur-
viving spouse (as defined in 2(a)), $35,000, 
‘‘(B) in the case of a head of household (as 
defined in section 2(b)), 75 percent of the 
amount in effect for the taxable year under sub-
paragraph (A), and 
‘‘(C) in the case of any other individual, 50 
percent of the amount in effect for the taxable 
year under subparagraph (A). 
‘‘(4) INFLATION ADJUSTMENT.— 
‘‘(A) IN
GENERAL.—In the case of any 
taxable year beginning in a calendar year after 
2028, the $48,000 dollar amount in paragraph 
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(2) and the $35,000 in paragraph (3) shall 
each be increased by an amount equal to— 
‘‘(i) such dollar amount, multiplied by 
‘‘(ii) the cost-of-living adjustment de-
termined under section 1(f)(3) for the cal-
endar year in which the taxable year be-
gins, determined by substituting ‘calendar 
year 2024’ for ‘calendar year 2016’ in sub-
paragraph (A)(ii) thereof. 
‘‘(B) ROUNDING.—Any increase deter-
mined under subparagraph (A) that is not a 
multiple of $500 shall be rounded to the near-
est multiple of $500.’’. 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply to taxable years beginning after 
December 31, 2028. 
SEC. 405. ENHANCEMENT OF 403(B) PLANS. 
(a) IN GENERAL.—Section 403(b)(7)(A) of the Inter-
nal Revenue Code of 1986 is amended by striking ‘‘if the 
amounts are to be invested in regulated investment com-
pany stock to be held in that custodial account’’ and in-
serting ‘‘if the amounts are to be held in that custodial 
account and invested in regulated investment company 
stock or a group trust intended to satisfy the requirements 
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of Internal Revenue Service Revenue Ruling 81–100 (or 
any successor guidance)’’. 
(b) CONFORMING AMENDMENT.—The heading of 
paragraph (7) of section 403(b) of such Code is amended 
by striking ‘‘FOR
REGULATED
INVESTMENT
COMPANY 
STOCK’’. 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply to amounts invested after Decem-
ber 31, 2024. 
SEC. 406. INCREASE IN AGE FOR REQUIRED BEGINNING 
DATE FOR MANDATORY DISTRIBUTIONS. 
(a) IN GENERAL.—Section 401(a)(9)(C)(i)(I) of the 
Internal Revenue Code of 1986 is amended by striking 
‘‘age 72’’ and inserting ‘‘the applicable age’’. 
(b) SPOUSE BENEFICIARIES; SPECIAL RULE
FOR 
OWNERS.—Subparagraphs (B)(iv)(I) and (C)(ii)(I) of sec-
tion 401(a)(9) of such Code are each amended by striking 
‘‘age 72’’ and inserting ‘‘the applicable age’’. 
(c) APPLICABLE AGE.—Section 401(a)(9)(C) of such 
Code is amended by adding at the end the following new 
clause: 
‘‘(v) APPLICABLE AGE.— 
‘‘(I) In the case of an individual 
who attains age 72 after December 
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31, 2024, and age 73 before January 
1, 2032, the applicable age is 73. 
‘‘(II) In the case of an individual 
who attains age 73 after December 
31, 2031, and age 74 before January 
1, 2035, the applicable age is 74. 
‘‘(III) In the case of an indi-
vidual who attains age 74 after De-
cember 31, 2034, the applicable age is 
75.’’. 
(d) CONFORMING AMENDMENTS.—The last sentence 
of section 408(b) of such Code is amended by striking 
‘‘age 72’’ and inserting ‘‘the applicable age (determined 
under section 401(a)(9)(C)(v) for the calendar year in 
which such taxable year begins)’’. 
(e) EFFECTIVE DATE.—The amendments made by 
this section shall apply to distributions required to be 
made after December 31, 2024, with respect to individuals 
who attain age 72 after such date. 
SEC. 407. INDEXING IRA CATCH-UP LIMIT. 
(a) IN GENERAL.—Subparagraph (C) of section 
219(b)(5) of the Internal Revenue Code of 1986 is amend-
ed by adding at the end the following new clause: 
‘‘(iii) INDEXING OF CATCH-UP LIMITA-
TION.—In the case of any taxable year be-
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ginning in a calendar year after 2025, the 
$1,000 amount under subparagraph (B)(ii) 
shall be increased by an amount equal to— 
‘‘(I) such dollar amount, multi-
plied by 
‘‘(II) the cost-of-living adjust-
ment determined under section 1(f)(3) 
for the calendar year in which the tax-
able year begins, determined by sub-
stituting ‘calendar year 2024’ for ‘cal-
endar year 2016’ in subparagraph 
(A)(ii) thereof. 
If any amount after adjustment under the 
preceding sentence is not a multiple of 
$100, such amount shall be rounded to the 
next lower multiple of $100.’’. 
(b) EFFECTIVE DATE.—The amendments made by 
this section shall apply to taxable years beginning after 
December 31, 2025. 
SEC. 408. HIGHER CATCH-UP LIMIT TO APPLY AT AGE 62, 63, 
AND 64. 
(a) IN GENERAL.— 
(1) PLANS OTHER THAN SIMPLE PLANS.—Sec-
tion 414(v)(2)(B)(i) of the Internal Revenue Code of 
1986 is amended by inserting the following before 
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the period: ‘‘($10,000, in the case of an eligible par-
ticipant who would attain age 62, but not age 65, 
before the close of the taxable year)’’. 
(2) SIMPLE PLANS.—Section 414(v)(2)(B)(ii) of 
such Code is amended by inserting the following be-
fore the period: ‘‘($5,000, in the case of an eligible 
participant who would attain age 62, but not age 65, 
before the close of the taxable year)’’. 
(b) COST-OF-LIVING ADJUSTMENTS.—Subparagraph 
(C) of section 414(v)(2) of such Code is amended by add-
ing at the end the following: ‘‘In the case of a year begin-
ning after December 31, 2023, the Secretary shall adjust 
annually the $10,000 amount in subparagraph (B)(i) and 
the $5,000 amount in subparagraph (B)(ii) for increases 
in the cost-of-living at the same time and in the same 
manner as adjustments under the preceding sentence; ex-
cept that the base period taken into account shall be the 
calendar quarter beginning July 1, 2022.’’. 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply to taxable years beginning after 
December 31, 2025. 
SEC. 409. POOLED EMPLOYER PLANS MODIFICATION. 
(a) IN GENERAL.—Section 3(43)(B)(ii) of the Em-
ployee Retirement Income Security Act of 1974 (29 
U.S.C. 1002(43)(B)(ii)) is amended to read as follows: 
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‘‘(ii) designate a named fiduciary 
(other than an employer in the plan) to be 
responsible for collecting contributions to 
the plan and require such fiduciary to im-
plement written contribution collection pro-
cedures that are reasonable, diligent, and 
systematic;’’. 
(b) EFFECTIVE DATE.—The amendments made by 
this section shall apply to plan years beginning after De-
cember 31, 2024. 
SEC. 410. MULTIPLE EMPLOYER 403(B) PLANS. 
(a) IN GENERAL.—Section 403(b) of the Internal 
Revenue Code of 1986 is amended by adding at the end 
the following new paragraph: 
‘‘(15) MULTIPLE EMPLOYER PLANS.— 
‘‘(A) IN GENERAL.—Except in the case of 
a church plan, this subsection shall not be 
treated as failing to apply to an annuity con-
tract solely by reason of such contract being 
purchased under a plan maintained by more 
than 1 employer. 
‘‘(B) TREATMENT OF EMPLOYERS FAILING 
TO MEET REQUIREMENTS OF PLAN.— 
‘‘(i) IN GENERAL.—In the case of a 
plan maintained by more than 1 employer, 
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this subsection shall not be treated as fail-
ing to apply to an annuity contract held 
under such plan merely because of one or 
more employers failing to meet the require-
ments of this subsection if such plan satis-
fies rules similar to the rules of section 
413(e)(2) with respect to any such em-
ployer failure. 
‘‘(ii) ADDITIONAL REQUIREMENTS IN 
CASE OF NON-GOVERNMENTAL PLANS.—A 
plan shall not be treated as meeting the re-
quirements of this subparagraph unless the 
plan satisfies rules similar to the rules of 
subparagraph (A) or (B) of section 
413(e)(1), except in the case of a multiple 
employer plan maintained solely by any of 
the following: A State, a political subdivi-
sion of a State, or an agency or instrumen-
tality of any one or more of the fore-
going.’’. 
(b) ANNUAL REGISTRATION FOR 403(b) MULTIPLE 
EMPLOYER PLAN.—Section 6057 of such Code is amend-
ed by redesignating subsection (g) as subsection (h) and 
by inserting after subsection (f) the following new sub-
section: 
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‘‘(g) 403(b) MULTIPLE EMPLOYER PLANS TREATED 
AS ONE PLAN.—In the case of annuity contracts to which 
this section applies and to which section 403(b) applies 
by reason of the plan under which such contracts are pur-
chased meeting the requirements of paragraph (15) there-
of, such plan shall be treated as a single plan for purposes 
of this section.’’. 
(c) ANNUAL INFORMATION RETURNS
FOR 403(b) 
MULTIPLE EMPLOYER PLAN.—Section 6058 of such Code 
is amended by redesignating subsection (f) as subsection 
(g) and by inserting after subsection (e) the following new 
subsection: 
‘‘(f) 403(b) MULTIPLE EMPLOYER PLANS TREATED 
AS ONE PLAN.—In the case of annuity contracts to which 
this section applies and to which section 403(b) applies 
by reason of the plan under which such contracts are pur-
chased meeting the requirements of paragraph (15) there-
of, such plan shall be treated as a single plan for purposes 
of this section.’’. 
(d) AMENDMENTS TO EMPLOYEE RETIREMENT IN-
COME SECURITY ACT OF 1974.— 
(1) IN GENERAL.—Section 3(43)(A) of the Em-
ployee Retirement Income Security Act of 1974 is 
amended— 
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(A) in clause (ii), by striking ‘‘section 
501(a) of such Code or’’ and inserting ‘‘section 
501(a) of such Code, a plan that consists of 
contracts described in section 403(b) of such 
Code, or’’; and 
(B) in the flush text at the end, by striking 
‘‘the plan.’’ and inserting ‘‘the plan, but such 
term shall include any program (other than a 
governmental plan) maintained for the benefit 
of the employees of more than 1 employer that 
consists of contracts described in section 403(b) 
of such Code and that meets the requirements 
of subparagraph (A) or (B) of section 413(e)(1) 
of such Code.’’. 
(2) 
CONFORMING
AMENDMENTS.—Sections 
3(43)(B)(v)(II) and 3(44)(A)(i)(I) of the Employee 
Retirement Income Security Act of 1974 are each 
amended by striking ‘‘section 401(a) of such Code 
or’’ and inserting ‘‘section 401(a) of such Code, a 
plan that consists of contracts described in section 
403(b) of such Code, or’’. 
(e) REGULATIONS RELATING TO EMPLOYER FAIL-
URE TO MEET MULTIPLE EMPLOYER PLAN REQUIRE-
MENTS.—The Secretary of the Treasury (or the Sec-
retary’s delegate) shall prescribe such regulations as may 
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