With so many frequent changes taking place within the Social security Administration, retirement is very much on the forefront of many Americans’ minds. In fact, more seniors than ever are trying to figure out what other options they have to ensure financial security long after they quit working. Fortunately, further relief could be on the way if a Senate bill introduced this summer eventually becomes a law. Keep reading to learn more about the Pensions for All Act that could improve retirement benefits for those working in the private sector.
What is the Pensions for All Act?
On July 17, 2025, Senator Bernie Sanders introduced a bill known as the Pensions for All Act. The legislation would ensure all Americans who are age eligible receive comprehensive retirement coverage equal to the benefits of those in the public sector.
“If we are serious about addressing the retirement crisis in America, corporations must be required to offer all of their workers a traditional pension plan that guarantees a monthly income in retirement,” Sanders said in a press release. “And if corporations refuse to offer a decent retirement plan, their workers must be allowed to receive the same type of pension that every member of Congress receives.”
Currently, when most workers in the private sector retire they must rely on just personal savings and Social Security benefits to ensure financial security. But with concerns about Social Security’s future, this resource could eventually provide even less monetary support for current and future retirees. This bill was created with the goal of guaranteed benefits regardless of what type of employer you have.
How the bill would change retirement benefits
The Pensions for All Act would require private corporations to help support its employees who are entering retirement outside of offering options like 401(k) and IRA accounts. Specifically, companies would need to make sure Americans are just as supported financially as those working public jobs.
This means employers would have to choose from one of two options:
- Provide a traditional pension plan for employees that is equivalent to what is provided to new Congress members under the Federal Employees Retirement System (FERS).
- Pay into the federal retirement system so that all of their employees receive benefits equal to those of Congress members.
Americans who are self-employed or own small businesses would also catch a break. In this case, the bill would introduce lower contribution requirements for retirement benefits.
Federal retirement benefits explained
Since the passing of this bill would mean that Americans in the private sector could receive federal-level retirement benefits, it can be helpful to know what public employees currently earn.
In general, private employees usually have a defined contribution plan, according to GovExec.com. These plans are built on funds contributed by employers and employees. A Thrift Savings Plan and IRA are some common examples.
Defined benefit plans (like FERS), on the other hand, provide benefits based on a specific formula. This usually includes salary and years of service/employment rather than how much money was contributed to the plan.
The minimum retirement age (MRA) for the FERS program is currently 55-57 depending on birth year. Like Social Security, however, benefits are reduced unless employees have also met the work requirements.
Here’s what is required to retire and receive benefits:
- MRA: 30 years of service
- Age 60: 20 years of service
- Age 62: 5 years of service
This means that employees are automatically entitled to a certain amount of benefits outside of what they’ve contributed to any personal plan.
What’s next for the Pensions for All Act in Congress?
As of now, the tracker for the bill’s progress shows that it has been read twice and referred to the Committee on Finance. If it manages to pass in the Senate, it will also need approval in the House before it gets to President Trump to sign into law.
It’s possible that the legislation may undergo some changes before it can get Congressional approval and become a reality for American workers. That could also mean that the minimum retirement age and other eligibility requirements could change for private sector employees in order to qualify for Federal Employees Retirement System benefits.
The good news: It’s likely that the Pensions for All Act becoming law could mean a much affordable retirement for seniors across the country.
