I 
119TH CONGRESS 
1ST SESSION H. R. 5887 
To establish a universal personal savings program, and for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
OCTOBER 31, 2025 
Mr. PETERS (for himself and Mrs. TORRES of California) introduced the fol-
lowing bill; which was referred to the Committee on Ways and Means, 
and in addition to the Committee on Education and Workforce, for a pe-
riod to be subsequently determined by the Speaker, in each case for con-
sideration of such provisions as fall within the jurisdiction of the com-
mittee concerned 
A BILL 
To establish a universal personal savings program, and for 
other purposes. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Saving for the Future 
Act’’. 
SEC. 2. FINDINGS. 
Congress finds as follows: 
(1) 3 out of 10 private-sector workers lack ac-
cess to any workplace retirement plan, according to 
VerDate Sep 11 2014 
20:38 Nov 12, 2025
Jkt 069200
PO 00000
Frm 00001
Fmt 6652
Sfmt 6201
E:\BILLS\H5887.IH
H5887
ssavage on LAPJG3WLY3PROD with BILLS
a Bureau of Labor Statistics report from a 2023 re-
port. 
(2) A retirement study conducted by the Gov-
ernment Accountability Office found that 48 percent 
of households age 55 and older have no retirement 
savings in a defined contribution plan or individual 
retirement account, and nearly 30 percent of house-
holds age 55 and older have no retirement savings 
and no defined benefit plan. 
(3) A 2022 report on the economic well-being of 
United States households conducted by the Federal 
Reserve found that 28 percent of non-retirees re-
portedly did not have any retirement savings, and 
that 60 percent of non-retirees with self-directed re-
tirement accounts expressed low levels of confidence 
in their ability to make the right investment deci-
sions when investing in such accounts. 
SEC. 3. UNIVERSAL PERSONAL SAVINGS. 
(a) IN GENERAL.—Subtitle B of title I of the Em-
ployee Retirement Income Security Act of 1974 (29 
U.S.C. 1021 et seq.) is amended by adding at the end 
the following: 
‘‘PART 8—UNIVERSAL PERSONAL SAVINGS 
‘‘SEC. 801. DEFINITIONS. 
‘‘For purposes of this part: 
VerDate Sep 11 2014 
20:38 Nov 12, 2025
Jkt 069200
PO 00000
Frm 00002
Fmt 6652
Sfmt 6201
E:\BILLS\H5887.IH
H5887
ssavage on LAPJG3WLY3PROD with BILLS
‘‘(1) APPLICABLE EMPLOYER.—The term ‘ap-
plicable employer’ means an employer— 
‘‘(A) with at least 10 full-time equivalent 
employees; and 
‘‘(B) that has employed at least 10 full- 
time equivalent employees for not less than 2 
years. 
‘‘(2) BOARD.—The term ‘Board’ means the 
Federal Universal Personal Savings Investment 
Board established under section 803. 
‘‘(3) EMPLOYEE.—The term ‘employee’, unless 
specified otherwise, includes full-time and part-time 
employees of an applicable employer. 
‘‘(4) EXECUTIVE DIRECTOR.—The term ‘Execu-
tive Director’ means the Executive Director of the 
UP Account Board appointed under section 803. 
‘‘(5) FULL TIME.—The term ‘full time’, with 
respect to employment, means 40 hours per week. 
‘‘(6) FULL-TIME
EQUIVALENT
EMPLOYEE.— 
The term ‘full-time equivalent employee’ means the 
sum of— 
‘‘(A) the number of employees working full 
time; and 
‘‘(B) the full-time equivalent of the num-
ber of employees working part-time, as defined 
VerDate Sep 11 2014 
20:38 Nov 12, 2025
Jkt 069200
PO 00000
Frm 00003
Fmt 6652
Sfmt 6201
E:\BILLS\H5887.IH
H5887
ssavage on LAPJG3WLY3PROD with BILLS
and calculated in the manner determined most 
appropriate by the Secretary. 
‘‘SEC. 802. EMPLOYER CONTRIBUTION REQUIREMENTS. 
‘‘(a) MINIMUM EMPLOYER CONTRIBUTION.— 
‘‘(1) IN GENERAL.—Beginning in the first full 
taxable year following the date of enactment of the 
Saving for the Future Act, each applicable employer 
shall contribute to a qualifying plan, on behalf of 
each employee that is not enrolled in an active, de-
fined benefit pension plan sponsored by such em-
ployer, the applicable minimum amount described in 
paragraph (2). 
‘‘(2) MINIMUM EMPLOYER CONTRIBUTION.— 
‘‘(A) INITIAL
AMOUNTS.—For the first 
year in which the requirements of paragraph 
(1) apply, and the 1 year immediately following 
such first year, the minimum amount an appli-
cable employer is required to contribute for 
each full-time employee is $0.50 per hour 
worked by the employee. 
‘‘(B) THIRD
AND
FOURTH
YEARS.—For 
the 2 years immediately following the period 
during which subparagraph (A) applies, the 
minimum amount an applicable employer is re-
VerDate Sep 11 2014 
20:38 Nov 12, 2025
Jkt 069200
PO 00000
Frm 00004
Fmt 6652
Sfmt 6201
E:\BILLS\H5887.IH
H5887
ssavage on LAPJG3WLY3PROD with BILLS
quired to contribute for each full-time employee 
is $.60 per hour worked by the employee. 
‘‘(C) SUBSEQUENT YEARS.—The Secretary 
shall increase the amounts described in sub-
paragraph (B) for the year immediately fol-
lowing the period during which subparagraph 
(B) applies, and every 3 years thereafter, by an 
amount proportional to growth in average non-
supervisory wages. 
‘‘(3) NONCOMPLIANCE.—In the case of an ap-
plicable employer that is found to be in violation of 
the requirement under paragraph (1), such employer 
shall be required to make the contributions required 
under paragraph (1), plus interest, at an interest 
rate set by the Secretary through rulemaking. 
‘‘(b) QUALIFYING PLANS.— 
‘‘(1) IN GENERAL.—Each applicable employer 
shall provide a pension plan for all employees. 
‘‘(2) TYPES OF PLANS.—The pension plan re-
quired under paragraph (1)— 
‘‘(A)(i) in the case of an applicable em-
ployer with 100 or more full-time equivalent 
employees, shall be an employer plan, which 
may be a plan described in section 401(k) of 
the Internal Revenue Code of 1986, defined 
VerDate Sep 11 2014 
20:38 Nov 12, 2025
Jkt 069200
PO 00000
Frm 00005
Fmt 6652
Sfmt 6201
E:\BILLS\H5887.IH
H5887
ssavage on LAPJG3WLY3PROD with BILLS
benefit pension plan, or any other plan de-
scribed in section 219(g)(5) of the Internal 
Revenue Code of 1986; and 
‘‘(ii) in the case of an applicable employer 
with fewer than 100 full-time equivalent em-
ployees, shall be a plan described in subpara-
graph (A), a simple retirement account under 
section 408(p) of the Internal Revenue Code of 
1986 or an automatic payroll deduction indi-
vidual retirement account or multiple employer 
plan, including any current or prospective 
State-established and-facilitated payroll deduc-
tion or automatic individual retirement account, 
or an UP Account described in section 804; or 
‘‘(B) in the case of an applicable employer 
who does not provide an employer contribution 
but offers a State-established or-facilitated pro-
gram described in subparagraph (A)(ii), such 
employer shall provide an UP Retirement Ac-
count to which the employer makes contribu-
tions, and any employee contributions shall be 
directed to the State plan. 
‘‘(3) CLARIFICATION
OF
EMPLOYER
OBLIGA-
TIONS WITH RESPECT TO CERTAIN EMPLOYEES.—In 
the case of an applicable employer that offers a UP 
VerDate Sep 11 2014 
20:38 Nov 12, 2025
Jkt 069200
PO 00000
Frm 00006
Fmt 6652
Sfmt 6201
E:\BILLS\H5887.IH
H5887
ssavage on LAPJG3WLY3PROD with BILLS
Retirement Account plan and any other type of plan 
described in subparagraph (A)(i), (A)(ii), or (B), as 
applicable, of paragraph (2), to employees, with re-
spect to employees for whom the employer is not re-
quired under this Act to offer participation in such 
other type of plan, the requirements of this part may 
be met by allowing such employees to participate in 
such other plan. 
‘‘(c) STANDARD NOTICE.—The board shall develop a 
standard notice that employers with fewer than 10 work-
ers electing not to make contributions are required to pro-
vide to each employee upon hire, and annually thereafter. 
Such notice shall provide instructions on how to set up 
an account, make contributions, and claim the individual 
credit under section 25BB of the Internal Revenue Code 
of 1986. 
‘‘SEC. 803. UP ACCOUNT BOARD. 
‘‘(a) ESTABLISHMENT OF BOARD.—There is estab-
lished a Federal Universal Personal Savings Investment 
Board, an independent government agency for the purpose 
of overseeing UP Accounts. 
‘‘(b) MEMBERSHIP.— 
‘‘(1) APPOINTMENT OF MEMBERS.—The Presi-
dent shall appoint, by and with the consent of the 
Senate, 5 members to serve on the Board. Such 
VerDate Sep 11 2014 
20:38 Nov 12, 2025
Jkt 069200
PO 00000
Frm 00007
Fmt 6652
Sfmt 6201
E:\BILLS\H5887.IH
H5887
ssavage on LAPJG3WLY3PROD with BILLS
members shall have substantial experience, training, 
and expertise in the management of financial invest-
ments and pension benefit plans. 
‘‘(2) EXECUTIVE DIRECTOR.—The Board shall 
hire an Executive Director of the Board. 
‘‘(3) TERMS.—Each member shall serve a term 
of 5 years, except that, of the members first ap-
pointed, one shall serve a term of 1 year, one shall 
serve a term of 2 years, one shall serve a term of 
3 years, one shall serve a term of 4 years, and one 
shall serve a term of 5 years. Each member of the 
Board may serve up to 2 consecutive terms. 
‘‘(c) FUNDING.—Administrative expenses incurred to 
carry out this part shall be paid first out net earnings 
in the UP Account Fund. 
‘‘SEC. 804. UP ACCOUNT FUND. 
‘‘(a) IN GENERAL.—There is established in the 
Treasury of the United States a UP Account Fund. 
‘‘(b) FUNDS.—The UP Account Fund shall consist 
of all amounts contributed by participants, and employees 
on behalf of participants, into UP Retirement Accounts 
and UP Savings Accounts, increased by the total net earn-
ings from investments of sums in the UP Account Fund 
or reduced by the total net losses from investments of the 
UP Account Fund, and reduced by the total amount of 
VerDate Sep 11 2014 
20:38 Nov 12, 2025
Jkt 069200
PO 00000
Frm 00008
Fmt 6652
Sfmt 6201
E:\BILLS\H5887.IH
H5887
ssavage on LAPJG3WLY3PROD with BILLS
payments made from the UP Account Fund (including 
payments for administrative expenses). 
‘‘(c) PERMISSIBLE USES OF FUNDS.—The sums in 
the UP Account Fund are appropriated and shall remain 
available without fiscal year limitation— 
‘‘(1) to invest in accordance with section 
805(h); 
‘‘(2) to pay benefits or purchase annuity con-
tracts under this subchapter; and 
‘‘(3) to pay administrative expenses. 
‘‘SEC. 805. UP RETIREMENT ACCOUNTS. 
‘‘(a) IN GENERAL.—The Board shall establish UP 
Retirement Accounts that are portable, defined contribu-
tion pension plans. 
‘‘(b) ROLLOVERS.— 
‘‘(1) DEFINITIONS.—For purposes of this sub-
section— 
‘‘(A) the term ‘eligible rollover distribution’ 
has the meaning given such term by section 
402(c)(4) of the Internal Revenue Code of 
1986; and 
‘‘(B) the term ‘qualified trust’ has the 
meaning given such term by section 402(c)(8) 
of the Internal Revenue Code of 1986. 
VerDate Sep 11 2014 
20:38 Nov 12, 2025
Jkt 069200
PO 00000
Frm 00009
Fmt 6652
Sfmt 6201
E:\BILLS\H5887.IH
H5887
ssavage on LAPJG3WLY3PROD with BILLS
‘‘(2) ROLLOVERS.—A participant may con-
tribute to the UP Retirement Account an eligible 
rollover that a qualified trust could accept under the 
Internal Revenue Code of 1986. A contribution 
made under this subsection shall be made in the 
form described in section 401(a)(31) of the Internal 
Revenue Code of 1986. In the case of an eligible 
rollover distribution, the maximum amount trans-
ferred to the UP Account Fund shall not exceed the 
amount which would otherwise have been included in 
the participant’s gross income for Federal income 
tax purposes. 
‘‘(3) REGULATIONS.—The Executive Director 
shall prescribe regulations to carry out this sub-
section. 
‘‘(c) ADMINISTRATION.—The Board shall contract 
with one or more private investment firms to administer 
the UP Accounts. The Board shall contract with multiple 
private investment firms, as necessary to ensure that no 
single firm administers more than $500,000,000,000 in 
UP Account assets. 
‘‘(d) INDIVIDUAL ELIGIBILITY.— 
‘‘(1) IN GENERAL.—An employee is eligible to 
participate in a UP Retirement Account if— 
VerDate Sep 11 2014 
20:38 Nov 12, 2025
Jkt 069200
PO 00000
Frm 00010
Fmt 6652
Sfmt 6201
E:\BILLS\H5887.IH
H5887
ssavage on LAPJG3WLY3PROD with BILLS
‘‘(A) the employee’s employer establishes a 
UP Retirement Account on the employee’s be-
half; or 
‘‘(B) the employee demonstrates to the 
Board that the employee works for a employer 
that is not an applicable employer. 
‘‘(2) MAINTENANCE
OF
ACCOUNT.—An indi-
vidual who becomes a participant in a UP Retire-
ment Account as described in paragraph (1) may 
maintain such account and may continue to make 
individual contributions to such account, regardless 
of such individual’s subsequent employment status, 
provided that the individual is not a participant in 
another plan described in section 802(b)(2). 
‘‘(e) QUARTERLY STATEMENTS.—The Board shall 
provide participants with a quarterly statement explaining 
each participant’s projected income in retirement under 
different distribution scenarios and identifying the total 
dollar amount paid in fees for the year. 
‘‘(f) EMPLOYEE AND EMPLOYER CONTRIBUTIONS.— 
‘‘(1) EMPLOYEE CONTRIBUTIONS.— 
‘‘(A) IN GENERAL.—Applicable employers 
making contributions required under section 
802 to a UP Retirement Account shall auto-en-
roll all employees in such an account with an 
VerDate Sep 11 2014 
20:38 Nov 12, 2025
Jkt 069200
PO 00000
Frm 00011
Fmt 6652
Sfmt 6201
E:\BILLS\H5887.IH
H5887
ssavage on LAPJG3WLY3PROD with BILLS
employee contribution that is equal to 4 percent 
of the employee’s wages, with the option for any 
such employee to elect a different employee con-
tribution level or to opt out of such account at 
any time. 
‘‘(B) 
AUTO-ESCALATION.—Employees 
making contributions to a UP Retirement Ac-
count shall have their contributions automati-
cally escalated by half a percentage point at the 
conclusion of each full year during which such 
employer is so enrolled, until reaching the level 
of a 10 percent employee contribution. Any em-
ployee may opt out of such automatic esca-
lation. 
‘‘(C) DEFAULT ELECTIONS IN THE CASE 
OF CHANGES IN EMPLOYMENT.—In the case of 
an employee who was enrolled in a UP Retire-
ment Account through one employer and subse-
quently ceases to work for such employer, if the 
employee subsequently is employed by another 
applicable employer, the employee’s default con-
tribution level under this paragraph shall be the 
same level that it was on the last day of em-
ployment with the previous employer. 
‘‘(2) EMPLOYER CONTRIBUTIONS.— 
VerDate Sep 11 2014 
20:38 Nov 12, 2025
Jkt 069200
PO 00000
Frm 00012
Fmt 6652
Sfmt 6201
E:\BILLS\H5887.IH
H5887
ssavage on LAPJG3WLY3PROD with BILLS
‘‘(A) IN GENERAL.—Applicable employers 
may contribute more to an employee’s UP Re-
tirement Account than is required under section 
802, but may not contribute more than 1⁄2 the 
amount in effect under section 402(g)(1)(B) of 
the Internal Revenue Code of 1986 for the tax-
able year. 
‘‘(B) DEFAULT
RULES.—Any employer 
matching requirements under this part shall 
apply to any employer contributions that are in 
addition to the minimum employer contribution. 
‘‘(C) FIDUCIARY
DUTIES.—An applicable 
employer’s fiduciary duties with respect to an 
employee’s UP Retirement Account extend only 
to the full and timely payment of contributions 
to their employees’ UP Retirement Accounts. 
For all other purposes, the members of the 
Board are the fiduciaries of such accounts. 
‘‘(g) PARTICIPANT ACCOUNTS.— 
‘‘(1) IN
GENERAL.—The Executive Director 
shall establish and maintain an account for each in-
dividual who makes contributions or for whom con-
tributions are made under this section. 
‘‘(2) BALANCES.—The balance in a partici-
pant’s account at any time is the excess of— 
VerDate Sep 11 2014 
20:38 Nov 12, 2025
Jkt 069200
PO 00000
Frm 00013
Fmt 6652
Sfmt 6201
E:\BILLS\H5887.IH
H5887
ssavage on LAPJG3WLY3PROD with BILLS
‘‘(A) the sum of— 
‘‘(i) all contributions made to the UP 
Retirement Account by the participant; 
‘‘(ii) all contributions made to such 
Account for the benefit of the participant; 
and 
‘‘(iii) the total amount of the alloca-
tions made to and reductions made in the 
account pursuant to paragraph (3), over 
‘‘(B) the amounts paid out of the UP Re-
tirement Account with respect to such partici-
pant. 
‘‘(3) ADJUSTMENTS.—Pursuant to regulations 
prescribed by the Executive Director, the Executive 
Director shall allocate to each account an amount 
equal to a pro rata share of the net earnings and net 
losses from each investment of sums in the UP Ac-
count Fund attributable to sums credited to such ac-
count, reduced by an appropriate share of the ad-
ministrative expenses paid out of the net earnings, 
as determined by the Executive Director. 
‘‘(h) INVESTMENTS.—The following investment rules 
shall apply with respect to a UP Retirement Account: 
‘‘(1) The Board shall make available a reason-
able menu of investment products, including low-fee 
VerDate Sep 11 2014 
20:38 Nov 12, 2025
Jkt 069200
PO 00000
Frm 00014
Fmt 6652
Sfmt 6201
E:\BILLS\H5887.IH
H5887
ssavage on LAPJG3WLY3PROD with BILLS
index funds, sufficient to provide participants with 
the opportunity to diversify their UP Retirement Ac-
counts in order to minimize the risk of large losses. 
‘‘(2) The default investment option for partici-
pants shall minimize fees, be diversified, and auto-
matically reduce risk to the participant as the par-
ticipant approaches retirement age. 
‘‘(3) UP Retirement Accounts shall allow par-
ticipants to change or customize investment alloca-
tion. 
‘‘(4) The board shall select investments solely in 
the interests of participants and beneficiaries and 
for the exclusive purpose of providing benefits and 
deferring reasonable expenses with the prevailing 
care, skill, prudence, and diligence that a prudent 
individual acting in a like capacity and familiar with 
such matters would use. 
‘‘(i) DISTRIBUTIONS.— 
‘‘(1) IN
GENERAL.—The Board shall ensure 
that investors are offered forms of distribution that 
include— 
‘‘(A) monthly income for life for the partic-
ipant or surviving spouse, if applicable; 
‘‘(B) monthly income until the normal or 
maximum Social Security retirement age for the 
VerDate Sep 11 2014 
20:38 Nov 12, 2025
Jkt 069200
PO 00000
Frm 00015
Fmt 6652
Sfmt 6201
E:\BILLS\H5887.IH
H5887
ssavage on LAPJG3WLY3PROD with BILLS
participant or surviving spouse, if applicable; 
and 
‘‘(C) 
automatic, 
regular 
withdrawals, 
under which a set percentage of initial capital 
is withdrawn each year, on a monthly basis. 
‘‘(2) DEATH
OF
PARTICIPANT.—In case of 
death of a participant, a lump sum shall be paid to 
designated beneficiary. 
‘‘SEC. 806. UP SAVINGS ACCOUNTS. 
‘‘(a) IN GENERAL.—In addition to a standard UP 
Retirement Account under section 805, a participant may 
maintain a UP Savings Account, established by the Board, 
and designed as safe, short-to medium-term savings vehi-
cles. 
‘‘(b) CONTRIBUTIONS; MAXIMUM BALANCE.— 
‘‘(1) IN
GENERAL.—Participants may make 
contributions to their UP Savings Account until the 
account reaches the maximum balance amount de-
scribed in paragraph (1). Any contributions a partic-
ipant wishes to make after the participant’s account 
reaches such maximum balance amount shall be 
credited to the participant’s UP Retirement Account 
established under section 805. A UP Savings Ac-
count may grow past the maximum balance amount 
due to accumulation without penalty. 
VerDate Sep 11 2014 
20:38 Nov 12, 2025
Jkt 069200
PO 00000
Frm 00016
Fmt 6652
Sfmt 6201
E:\BILLS\H5887.IH
H5887
ssavage on LAPJG3WLY3PROD with BILLS
‘‘(2) INCREASED AMOUNTS.—The Board shall 
establish the maximum balance amount for purposes 
of paragraph (1) as follows: 
‘‘(A) For the first fiscal year that begins 
after the date of enactment of the Saving for 
the Future Act, the maximum balance amount 
shall be $2,500. 
‘‘(B) For fiscal year immediately following 
the fiscal year described in subparagraph (A), 
and each fiscal year thereafter, the Board shall 
increase the maximum balance amount from the 
previous year, in increments of $100 that most 
closely reflects the average wage growth during 
the applicable 12-month period. 
‘‘(3) DEFAULT
RULE.—Any contributions a 
participant makes pursuant to accounts established 
under this part shall be credited to the participant’s 
UP Savings Account, until such has reached the 
maximum balance amount, unless the participant 
specifies otherwise. Once the maximum balance is 
reached, additional contributions will go to a partici-
pant’s UP Retirement Account. 
‘‘(c) INVESTMENT.—The Board may invest contribu-
tions to UP Savings Accounts only in cash, money market 
funds, certificates of deposit, or government bonds. 
VerDate Sep 11 2014 
20:38 Nov 12, 2025
Jkt 069200
PO 00000
Frm 00017
Fmt 6652
Sfmt 6201
E:\BILLS\H5887.IH
H5887
ssavage on LAPJG3WLY3PROD with BILLS
‘‘(d) WITHDRAWALS.—Participants may withdraw 
amounts from their UP Savings Account when experi-
encing a specific financial situation that requires a non- 
routine use of money, as determined by the Board (in 
rules similar to the rules governing hardship distributions 
from a trust described in section 401(a) of the Internal 
Revenue Code of 1986 which is exempt from taxation 
under section 501(a) of such Code). Such situations may 
include a major reduction in earnings, an on-the-job in-
jury, disability, family or medical leave, a large medical 
bill, the down payment for a home, and the beginning of 
a training or educational experience. The Board shall de-
termine the rules regarding such withdrawals, including 
allowable needs, and demonstration of the need, but shall 
not impose a withdrawal penalty or impose a repayment 
requirement. Loans to investors shall not be permitted. 
‘‘(e) OTHER PENSION PLANS.—Any pension plan 
may offer a safe, short-to medium-term savings account 
with terms similar to the terms that apply to UP Savings 
Accounts described in this section. For purposes of this 
Act, any such account shall be considered part of the pen-
sion plan. 
‘‘SEC. 807. TAX TREATMENT OF UP ACCOUNTS. 
‘‘(a) IN GENERAL.—For purposes of the Internal 
Revenue Code of 1986— 
VerDate Sep 11 2014 
20:38 Nov 12, 2025
Jkt 069200
PO 00000
Frm 00018
Fmt 6652
Sfmt 6201
E:\BILLS\H5887.IH
H5887
ssavage on LAPJG3WLY3PROD with BILLS
‘‘(1) the UP Account Fund shall be treated as 
a trust described in section 401(a) of such Code 
which is exempt from taxation under section 501(a) 
of such Code; 
‘‘(2) any contribution to, or distribution from, 
the UP Account Fund shall be treated in the same 
manner as contributions to or distributions from 
such a trust; and 
‘‘(3) subject to section 401(k)(4)(B) of such 
Code and any dollar limitation on the application of 
section 402(a)(8) of such Code, contributions to the 
UP Account Fund shall not be treated as distributed 
or made available to an employee or Member nor as 
a contribution made to the Fund by an employee or 
Member merely because the employee or Member 
has, under the provisions of this part, an election 
whether the contribution will be made to the UP Ac-
count Fund or received by the employee or Member 
in cash. 
‘‘(b) NONDISCRIMINATION
REQUIREMENTS.—Not-
withstanding any other provision of law, the UP Account 
Fund is not subject to the nondiscrimination requirements 
applicable to arrangements described in section 401(k) of 
the Internal Revenue Code of 1986, or to matching con-
VerDate Sep 11 2014 
20:38 Nov 12, 2025
Jkt 069200
PO 00000
Frm 00019
Fmt 6652
Sfmt 6201
E:\BILLS\H5887.IH
H5887
ssavage on LAPJG3WLY3PROD with BILLS
tributions (as described in section 401(m) of such Code), 
so long as it meets the requirements of this section. 
‘‘(c) RULE OF CONSTRUCTION.—Subsection (a) shall 
not be construed to provide that any amount of the em-
ployee’s or Member’s basic pay which is contributed to the 
UP Account Fund shall not be included in the term 
‘wages’ for the purposes of section 209 of the Social Secu-
rity Act or section 3121(a) of the Internal Revenue Code 
of 1986. 
‘‘SEC. 808. QUALIFIED ROTH CONTRIBUTION PROGRAM. 
‘‘(a) DEFINITIONS.—For purposes of this section— 
‘‘(1) the term ‘qualified Roth contribution pro-
gram’ means a program described in paragraph (1) 
of section 402A(b) of the Internal Revenue Code of 
1986 which meets the requirements of paragraph (2) 
of such section; and 
‘‘(2) the terms ‘designated Roth contribution’ 
and ‘elective deferral’ have the meanings given such 
terms in section 402A of the Internal Revenue Code 
of 1986. 
‘‘(b) AUTHORITY TO ESTABLISH.—The Executive 
Director shall by regulation provide for the inclusion in 
the UP Accounts of a qualified Roth contribution pro-
gram, under such terms and conditions as the Board may 
prescribe. 
VerDate Sep 11 2014 
20:38 Nov 12, 2025
Jkt 069200
PO 00000
Frm 00020
Fmt 6652
Sfmt 6201
E:\BILLS\H5887.IH
H5887
ssavage on LAPJG3WLY3PROD with BILLS
‘‘(c) REQUIRED PROVISIONS.—The regulations under 
subsection (b) shall include— 
‘‘(1) provisions under which an election to make 
designated Roth contributions may be made by any 
individual who is eligible to make contributions to a 
UP Account under section 805(d); and 
‘‘(2) any other provisions which may be nec-
essary to carry out this section. 
‘‘SEC. 809. SURVIVOR ANNUITIES. 
‘‘The rules on survivor annuities under subchapter IV 
of chapter 84 of title 5, United States Code, that are ap-
plicable to the Thrift Savings Plan, shall apply to UP Ac-
counts. The Executive Director shall promulgate regula-
tions to provide for the application of such rules to UP 
Accounts, as appropriate.’’. 
(b) CLERICAL AMENDMENT.—The table of contents 
in section 1 of the Employee Retirement Income Security 
Act of 1974 is amended by inserting after the item relat-
ing to section 734 the following new items: 
‘‘PART 8—UNIVERSAL PERSONAL SAVINGS 
‘‘Sec. 801. Definitions. 
‘‘Sec. 802. Employer contribution requirements. 
‘‘Sec. 803. UP Account Board. 
‘‘Sec. 804. UP Account Fund. 
‘‘Sec. 805. UP Retirement Accounts. 
‘‘Sec. 806. UP Savings Accounts. 
‘‘Sec. 807. Tax treatment of UP Accounts. 
‘‘Sec. 808. Qualified Roth contribution program. 
‘‘Sec. 809. Survivor annuities.’’. 
VerDate Sep 11 2014 
20:38 Nov 12, 2025
Jkt 069200
PO 00000
Frm 00021
Fmt 6652
Sfmt 6211
E:\BILLS\H5887.IH
H5887
ssavage on LAPJG3WLY3PROD with BILLS
SEC. 4. INCREASE IN CREDIT FOR SMALL EMPLOYER PEN-
SION PLAN STARTUP COSTS. 
(a) IN GENERAL.—Paragraph (1) of section 45E(b) 
of the Internal Revenue Code of 1986 is amended by strik-
ing ‘‘$500’’ and inserting ‘‘$2,000’’. 
(b) ELIGIBLE EMPLOYERS.—Paragraph (1) of sec-
tion 45E(c) of the Internal Revenue Code of 1986 is 
amended by inserting ‘‘, applied by substituting ‘250’ for 
‘100’ ’’ after ‘‘408(p)(2)(C)(i)’’. 
(c) PENALTY FOR NONCOMPLIANT EMPLOYERS.— 
Subsection (c) of section 45E of the Internal Revenue 
Code of 1986 is amended by adding at the end the fol-
lowing new paragraph: 
‘‘(3) EMPLOYERS FAILING TO MAKE REQUIRED 
CONTRIBUTIONS.—Such term shall not include an 
employer subject to the requirement of section 
802(a)(1) of the Employee Retirement Income Secu-
rity Act of 1974 that fails, within the time pre-
scribed by the Secretary, to make any required con-
tribution under such section 802 for the taxable year 
or any of the 4 taxable years preceding such year.’’. 
(d) EFFECTIVE DATE.—The amendments made by 
this section shall apply to taxable years beginning after 
the date of the enactment of this Act. 
VerDate Sep 11 2014 
20:38 Nov 12, 2025
Jkt 069200
PO 00000
Frm 00022
Fmt 6652
Sfmt 6201
E:\BILLS\H5887.IH
H5887
ssavage on LAPJG3WLY3PROD with BILLS
SEC. 5. CREDIT FOR MINIMUM EMPLOYER CONTRIBU-
TIONS. 
(a) IN GENERAL.—Subpart D of part IV of sub-
chapter A of chapter 1 of the Internal Revenue Code of 
1986 is amended by adding at the end the following new 
section: 
‘‘SEC. 45BB. CREDIT FOR MINIMUM EMPLOYER CONTRIBU-
TIONS. 
‘‘(a) GENERAL RULE.—For purposes of section 38, 
the minimum employer contribution credit determined 
under this section for any taxable year is an amount equal 
to the applicable percentage of the qualified retirement 
contributions paid or incurred by the taxpayer during the 
taxable year. 
‘‘(b) APPLICABLE PERCENTAGE.—For purposes of 
subsection (a), the applicable percentage is— 
‘‘(1) 50 percent, in the case of contributions 
made with respect to not more than 15 employees of 
the employer (or the number of employees of the em-
ployer which is the equivalent of 15 full-time em-
ployees), and 
‘‘(2) 25 percent, in the case of contributions 
made with respect to so many of the employees of 
the employer (or the equivalent of so many full-time 
employees) as exceeds 15 but does not exceed 30. 
VerDate Sep 11 2014 
20:38 Nov 12, 2025
Jkt 069200
PO 00000
Frm 00023
Fmt 6652
Sfmt 6201
E:\BILLS\H5887.IH
H5887
ssavage on LAPJG3WLY3PROD with BILLS
‘‘(c) QUALIFIED RETIREMENT CONTRIBUTIONS.— 
For purposes of this section— 
‘‘(1) IN GENERAL.—The term ‘qualified retire-
ment contributions’ means— 
‘‘(A) contributions made by an employer as 
required under section 802 of the Employee Re-
tirement Income Security Act of 1974, and 
‘‘(B) contributions to a plan described in 
section 802(b)(2) of such Act made by an em-
ployer which is not subject to the requirement 
of section 802(a)(1) of such Act. 
‘‘(2) ONLY REQUIRED CONTRIBUTION AMOUNT 
TAKEN INTO ACCOUNT.—The term ‘qualified retire-
ment contributions’ does not include any amount in 
excess of— 
‘‘(A) the amount determined under section 
802(a)(2) of the Employee Retirement Income 
Security Act with respect to each employee of 
the employer, or 
‘‘(B) the amount which would be so deter-
mined if the employer were subject to the re-
quirement of section 802(a)(1) of such Act. 
‘‘(d) EMPLOYERS EXCLUDED
FOR FAILURE TO 
MAKE CONTRIBUTIONS.—Subsection (a) shall not apply 
to any employer which fails, within the time prescribed 
VerDate Sep 11 2014 
20:38 Nov 12, 2025
Jkt 069200
PO 00000
Frm 00024
Fmt 6652
Sfmt 6201
E:\BILLS\H5887.IH
H5887
ssavage on LAPJG3WLY3PROD with BILLS
by the Secretary, to make any contribution required to be 
made by such employer under section 802 of the Employee 
Retirement Income Security Act of 1974 for the taxable 
year or any of the 4 taxable years preceding such year. 
‘‘(e) SPECIAL RULES.—For purposes of this sec-
tion— 
‘‘(1) AGGREGATION RULES, ETC.—Rules similar 
to the rules of section 45E(e) shall apply. 
‘‘(2) DENIAL OF DOUBLE BENEFIT.—No credit 
shall be allowed under this section for any taxable 
year in which the credit under section 45E is al-
lowed with respect to the taxpayer. 
‘‘(f) CREDIT MADE AVAILABLE TO TAX-EXEMPT EL-
IGIBLE EMPLOYERS.— 
‘‘(1) IN GENERAL.—In the case of a tax-exempt 
eligible employer, there shall be treated as a credit 
allowable under subpart C (and not allowable under 
this subpart) the lesser of— 
‘‘(A) the amount of the credit determined 
under this section with respect to such em-
ployer, or 
‘‘(B) the amount of the payroll taxes of the 
employer during the calendar year in which the 
taxable year begins. 
VerDate Sep 11 2014 
20:38 Nov 12, 2025
Jkt 069200
PO 00000
Frm 00025
Fmt 6652
Sfmt 6201
E:\BILLS\H5887.IH
H5887
ssavage on LAPJG3WLY3PROD with BILLS
‘‘(2) TAX-EXEMPT ELIGIBLE EMPLOYER.—For 
purposes of this section, the term ‘tax-exempt eligi-
ble employer’ means an eligible employer which is 
any organization described in section 501(c) which is 
exempt from taxation under section 501(a). 
‘‘(3) PAYROLL TAXES.—For purposes of this 
subsection— 
‘‘(A) IN
GENERAL.—The term ‘payroll 
taxes’ means— 
‘‘(i) amounts required to be withheld 
from the employees of the tax-exempt eligi-
ble employer under section 3401(a), 
‘‘(ii) amounts required to be withheld 
from 
such 
employees 
under 
section 
3101(b), and 
‘‘(iii) amounts of the taxes imposed on 
the tax-exempt eligible employer under sec-
tion 3111(b). 
‘‘(B) SPECIAL
RULE.—A rule similar to 
the rule of section 24(d)(2)(C) shall apply for 
purposes of subparagraph (A).’’. 
(b) CREDIT TO BE MADE PART OF BUSINESS CRED-
IT.—Subsection (b) of section 38 of the Internal Revenue 
Code of 1986 is amended by striking ‘‘plus’’ at the end 
of paragraph (40), by striking the period at the end of 
VerDate Sep 11 2014 
20:38 Nov 12, 2025
Jkt 069200
PO 00000
Frm 00026
Fmt 6652
Sfmt 6201
E:\BILLS\H5887.IH
H5887
ssavage on LAPJG3WLY3PROD with BILLS
paragraph (41) and inserting ‘‘, plus’’, and by adding at 
the end the following new paragraph: 
‘‘(42) in the case of an eligible employer, the 
minimum employer contribution credit determined 
under section 45BB(a).’’. 
(c) CLERICAL AMENDMENT.—The table of sections 
for subpart D of part IV of subchapter A of chapter 1 
of the Internal Revenue Code of 1986 is amended by add-
ing at the end the following new item: 
‘‘Sec. 45BB. Credit for minimum employer contributions.’’. 
(d) TRANSFERS TO FEDERAL OLD-AGE AND SUR-
VIVORS INSURANCE TRUST FUND.—There are hereby ap-
propriated to the Federal Old-Age and Survivors Trust 
Fund and the Federal Disability Insurance Trust Fund 
established under section 201 of the Social Security Act 
(42 U.S.C. 401) amounts equal to the reduction in reve-
nues to the Treasury by reason of the enactment of section 
45AA(f) of the Internal Revenue Code of 1986. Amounts 
appropriated by the preceding sentence shall be trans-
ferred from the general fund at such times and in such 
manner as to replicate to the extent possible the transfers 
which would have occurred to such Trust Fund had such 
amendments not been enacted. 
(e) EFFECTIVE DATE.—The amendments made by 
this section shall apply to taxable years beginning after 
the date of the enactment of this Act. 
VerDate Sep 11 2014 
20:38 Nov 12, 2025
Jkt 069200
PO 00000
Frm 00027
Fmt 6652
Sfmt 6201
E:\BILLS\H5887.IH
H5887
ssavage on LAPJG3WLY3PROD with BILLS
SEC. 6. ADDITIONAL CREDIT FOR INDIVIDUALS MAKING 
RETIREMENT CONTRIBUTIONS. 
(a) IN GENERAL.—Subpart A of part IV of sub-
chapter A of chapter 1 of the Internal Revenue Code of 
1986 is amended by inserting after section 25B the fol-
lowing new section: 
‘‘SEC. 25BB. ADDITIONAL CREDIT FOR CERTAIN INDIVID-
UALS 
MAKING 
RETIREMENT 
CONTRIBU-
TIONS. 
‘‘(a) ALLOWANCE OF CREDIT.—In the case of an eli-
gible individual, there shall be allowed as a credit against 
the tax imposed by this subtitle for the taxable year an 
amount equal to 50 percent of so much of the qualified 
retirement contributions of the individual for the taxable 
year as do not exceed the base amount. 
‘‘(b) ELIGIBLE INDIVIDUAL.—For purposes of this 
section, the term ‘eligible individual’ means an individual 
whose employer does not provide a defined benefit plan 
(as defined in section 414(j)), defined contribution plan 
(as defined in section 414(i)), or participation in a UP 
Account under section 805 of the Employee Retirement 
Income Security Act of 1974, or who is not employed, at 
the time the qualified retirement contributions are made. 
‘‘(c) QUALIFIED
RETIREMENT
CONTRIBUTIONS, 
ETC.—For purposes of this section— 
VerDate Sep 11 2014 
20:38 Nov 12, 2025
Jkt 069200
PO 00000
Frm 00028
Fmt 6652
Sfmt 6201
E:\BILLS\H5887.IH
H5887
ssavage on LAPJG3WLY3PROD with BILLS
‘‘(1) IN GENERAL.—The term ‘qualified retire-
ment contributions’ means, with respect to any tax-
able year, any amounts paid in cash by an individual 
to— 
‘‘(A) an individual retirement plan, or 
‘‘(B) a UP Account established under sec-
tion 805 of the Employee Retirement Income 
Security Act of 1974, 
for the benefit of the individual. 
‘‘(2) BASE AMOUNT.—The base amount for any 
taxable year is an amount equal to the amount in 
effect under section 802(a)(3)(i) of the Employee 
Retirement Income Security Act of 1974 for such 
year. 
‘‘(d) SPECIAL RULES.— 
‘‘(1) INVESTMENT IN THE CONTRACT.—Rules 
similar to the rules of section 25B(f) shall apply for 
purposes of this section. 
‘‘(2) COORDINATION WITH SAVER’S CREDIT.— 
The credit under this section and the credit under 
section 25B shall each be determined without regard 
to the other.’’. 
(b) CLERICAL AMENDMENT.—The table of sections 
for subpart A of part IV of subchapter A of chapter 1 
of the Internal Revenue Code of 1986 is amended by in-
VerDate Sep 11 2014 
20:38 Nov 12, 2025
Jkt 069200
PO 00000
Frm 00029
Fmt 6652
Sfmt 6201
E:\BILLS\H5887.IH
H5887
ssavage on LAPJG3WLY3PROD with BILLS
serting after the item relating to section 25B the following 
new item: 
‘‘Sec. 25BB. Additional credit for certain individuals making retirement con-
tributions.’’. 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply to taxable years beginning after 
the date of the enactment of this Act. 
SEC. 7. INCREASE IN HIGHEST INDIVIDUAL INCOME TAX 
RATE. 
(a) IN GENERAL.—Each of the tables contained in 
subparagraphs (A), (B), (C), (D), and (E) of section 
1(j)(2) of the Internal Revenue Code of 1986 is amended 
by striking ‘‘37%’’ in the last line and inserting ‘‘39.6%’’. 
(b) EFFECTIVE DATE.—The amendments made by 
this section shall apply to taxable years beginning after 
December 31, 2024. 
SEC. 8. INCREASE IN CORPORATE INCOME TAX RATE. 
(a) IN GENERAL.—Subsection (b) of section 11 of the 
Internal Revenue Code of 1986 is amended by striking 
‘‘21 percent’’ and inserting ‘‘23 percent’’. 
(b) EFFECTIVE DATE.—The amendment made by 
this section shall apply to taxable years beginning after 
December 31, 2024. 
Æ 
VerDate Sep 11 2014 
20:38 Nov 12, 2025
Jkt 069200
PO 00000
Frm 00030
Fmt 6652
Sfmt 6301
E:\BILLS\H5887.IH
H5887
ssavage on LAPJG3WLY3PROD with BILLS