Labor & Employment (Retirement Benefits)

The Retirement Simplification and Clarity Act allows employees aged 50 and older to roll over their employer-contributed retirement funds directly into an annuity. It also requires retirement plans to provide clear, plain-language explanations to participants about distribution options, including details on taxes, deadlines, and what types of funds cannot be rolled over. These changes aim to make the retirement process easier to understand by standardizing the information given to workers and clarifying the rules for moving money between accounts. The provisions will take effect for taxable years starting after December 31, 2026.

The Employee Ownership Fairness Act of 2026 modifies tax rules for Employee Stock Ownership Plans (ESOPs) to help workers better manage their retirement savings. Currently, money contributed to ESOPs counts toward annual contribution limits, which can prevent employees from making additional contributions to other retirement accounts or receiving full employer matches. This bill changes those limits so that stock contributions and loan repayments for ESOPs do not count toward the caps, allowing employees to diversify their savings more easily. The changes apply to plan years starting after the law is enacted and affect companies that use ESOPs to provide employee ownership.

Departments of Labor, Health and Human Services, and Education, and Related Agencies Appropriations Act, 2027 This bill provides FY2027 appropriations to the Departments of Labor, Health and Human Services, and Education; and related agencies. The bill provides appropriations to the Department of Labor for the Employment and Training Administration, the Veterans' Employment and Training Service, the Employee Benefits Security Administration, the Pension Benefit Guaranty Corporation, the Wage and Hour Division, the Office of Labor-Management Standards, the Office of Workers' Compensation Programs, the Occupational Safety and Health Administration, the Mine Safety and Health Administration, the Bureau of Labor Statistics, the Office of Disability Employment Policy, and Departmental Management. The bill provides appropriations to the Department of Health and Human Services for the Health Resources and Services Administration, the Centers for Disease Control and Prevention, the National Institutes of Health, the Substance Abuse and Mental Health Services Administration, the Centers for Medicare and Medicaid Services, the Administration for Children and Families, the Administration for Community Living, the Administration for Strategic Preparedness and Response, and the Office of the Secretary. The bill provides appropriations to the Department of Education for the Office of Elementary and Secondary Education; the Office of Special Education and Rehabilitative Services; the Office of Career, Technical, and Adult Education; the Office of Federal Student Aid; the Office of Postsecondary Education; the Institute of Education Sciences; and Departmental Management. The bill also provides appropriations to several related agencies, including the Committee for Purchase From People Who Are Blind or Severely Disabled, the Corporation for National and Community Service, the Federal Mediation and Conciliation Service, the Federal Mine Safety and Health Review Commission, the Institute of Museum and Library Services, the Medicaid and CHIP Payment and Access Commission, the Medicare Payment Advisory Commission, the National Council on Disability, the National Labor Relations Board, the National Mediation Board, the Occupational Safety and Health Review Commission, the Railroad Retirement Board, and the Social Security Administration. The bill also sets forth requirements and restrictions for using funds provided by this and other appropriations acts.

The RISE Act introduces tax incentives to encourage small businesses to offer pension plans to their employees. It increases the startup tax credit for microemployers, allowing them to claim a larger credit for establishing a retirement plan starting in 2027. Additionally, the bill permits service providers who help set up these plans to receive a tax credit for the fees they waive to make the plans affordable. To prevent fraud, the law requires employers to certify that they have not previously received similar credits for the same group of workers. These changes aim to lower the financial barriers for small employers and their service partners to create retirement savings options.

The Railroad Retirement Fairness Act of 2026 amends the existing Railroad Retirement Act to eliminate a specific deduction applied to certain annuity payments. This change directly affects railroad workers and their beneficiaries who receive retirement benefits under the current system. By removing subdivision (6) of Section 2(f), the bill alters the calculation method used to determine the amount of these monthly payments. Consequently, eligible recipients may receive higher annuity amounts than they would have under the previous rules.

The INSIGHT Act requires the Department of Labor to submit annual reports to Congress detailing the status of active pension plan investigations, including timelines, reasons for delays, and estimated completion dates while protecting the privacy of private parties involved. It also mandates transparency regarding "adverse assistance" provided to attorneys by requiring written agreements that outline the scope of help and sharing copies of these agreements with potentially affected employers and plan sponsors. Additionally, the bill adds a formal statement to existing pension laws declaring that promoting voluntary pension plans is a key policy goal to ensure employee retirement security. These measures aim to increase accountability and public understanding of how the government oversees and supports employee benefit plans without revealing sensitive private information.

The Restoring Rights of Medical Residents Act repeals a specific section of the Pension Funding Equity Act of 2004 that previously barred medical residents from participating in certain pension plans. By removing this restriction, the bill allows medical residents to join and benefit from the same retirement savings programs available to other employees. This change directly affects medical residents working in the United States by expanding their access to employer-sponsored pension funding. The law takes effect on the first March 18 following its enactment.

This bill expands the Department of Defense Military Retirement Fund to include retired pay for members of the uniformed services beyond the current military branches. It specifically adds the National Oceanic and Atmospheric Administration and the Public Health Service to the list of agencies whose commissioned officers receive pensions from this fund. The legislation requires a calculation of the financial gap for these new groups by 2027 and establishes a schedule for paying off that debt over time. Additionally, the bill updates various legal definitions and administrative procedures to ensure these new services are treated consistently with existing military personnel regarding retirement benefits and survivor protections.

The Railroad Retirement Fairness Act amends the Railroad Retirement Act of 1974 to remove a specific provision that allowed deductions from railroad retirement annuities. This change directly affects current and future railroad workers who receive retirement benefits through the Railroad Retirement system. By striking subdivision (6) of Section 2(f), the bill eliminates a particular type of deduction that previously reduced the amount of money some retirees received. The legislation does not alter the overall structure of railroad retirement benefits but specifically targets one existing deduction mechanism.

The Senior Citizens’ Freedom to Work Act of 2026 aims to repeal the Retirement Earnings Test (RET) for Social Security beneficiaries. This means that individuals collecting Social Security benefits, including those under the Railroad Retirement program, would no longer have their benefits reduced if they continue to work and earn above a certain income threshold. The bill achieves this by repealing specific subsections of the Social Security Act and making conforming amendments across related benefit provisions. This change directly affects senior citizens and other beneficiaries who choose to remain employed while receiving their benefits, ensuring they receive their full entitlement. The provisions of this act are set to take effect for taxable years ending after December 31, 2026.