[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2023 Introduced in House (IH)]
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119th CONGRESS
1st Session
H. R. 2023
To amend the Employee Retirement Income Security Act of 1974 to provide
for greater spousal protection under defined contribution plans, and
for other purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
March 11, 2025
Ms. Underwood (for herself, Ms. Bonamici, Ms. Schakowsky, Mr. Norcross,
Mrs. McIver, Ms. Norton, Ms. Tlaib, Mr. Grijalva, and Ms. Pingree)
introduced the following bill; which was referred to the Committee on
Education and Workforce, and in addition to the Committees on Financial
Services, and Ways and Means, for a period to be subsequently
determined by the Speaker, in each case for consideration of such
provisions as fall within the jurisdiction of the committee concerned
_______________________________________________________________________
A BILL
To amend the Employee Retirement Income Security Act of 1974 to provide
for greater spousal protection under defined contribution plans, and
for other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Women's Retirement Protection Act''.
SEC. 2. FINDINGS.
Congress finds the following:
(1) Approximately 28 percent of non-retired adults have no
defined benefit plan or retirement savings, according to 2023
data from the Board of Governors of the Federal Reserve System.
(2) In 2023, approximately one-third of the private sector
workforce did not have access to a retirement plan at the
workplace, and only half of the workforce actually participated
in a retirement plan.
(3) Women's retirement preparedness often lags
significantly behind their male counterparts', resulting in the
median income for women aged 65 and older in 2022 being just 83
percent of the median income of men aged 65 and older,
including income from social security, pension plans,
investments, and earnings.
(4) Women aged 80 and older had the highest poverty rate
among older persons in all age groups, with 14.7 percent of
women aged 80 and older living in poverty while 10.3 percent of
men in the same age group live in poverty.
(5) Women make up two-thirds of low-wage workers, even
though they comprise less than half of all workers, and low-
wage workers are less likely than other workers to participate
in a retirement plan at work.
(6) Because of the pay gap, women working full-time, year-
round typically lose $398,160 over a 40-year career thereby
requiring the average woman to work almost a decade longer than
her male counterpart to make up that career wage gap.
(7) Due to the lower lifetime wages stemming from unequal
pay and caregiving duties, the average Social Security benefit
in 2023 for a woman was $1,638 a month, while for men such
average monthly benefit was $2,020.
(8) While the SECURE 2.0 Act of 2022 (Public Law 117-328)
goes a long way to address this coverage gap, just 1 in 5 part-
time workers who work a full year are eligible for a retirement
plan, and women are almost twice as likely to work part-time as
men.
(9) While traditional defined benefit retirement plans have
spousal protections, defined contribution retirement plans,
which have become increasingly common, currently provide no
similar spousal protections.
(10) The Thrift Savings Plan of the Federal Government, the
largest defined contribution plan in the world with
approximately 6,500,000 participants, requires its married
participants to have their spouses' consent for withdrawals and
loans.
(11) There were almost 990,000 divorces in the United
States between 2020 and 2021. After the family home, retirement
savings tends to be the largest asset to be divided in a
divorce.
(12) While fees and expenses associated with retirement
plans have been in decline, participants have seen direct
charges for processing qualified domestic relations orders
increase significantly.
SEC. 3. INCREASING SPOUSAL PROTECTION UNDER DEFINED CONTRIBUTION PLANS.
(a) Amendment of Employee Retirement Income Security Act of 1974.--
(1) In general.--Part 2 of subtitle B of title I of the
Employee Retirement Income Security Act of 1974 (29 U.S.C. 1051
et seq.) is amended by inserting after section 205 the
following new section:
``SEC. 205A. ADDITIONAL SPOUSAL CONSENT REQUIREMENTS.
``(a) In General.--Each individual account plan to which section
205 does not apply shall provide that, except as provided in
subsections (c) and (d), no distribution may be made under the plan
unless the spousal consent requirements of subsection (e) are met.
``(b) Coordination With Section 205.--Nothing in this section shall
be construed to exempt an individual account plan from the requirements
of section 205 with respect to any participant.
``(c) Exceptions for Certain Distributions.--Subsection (a) shall
not apply to--
``(1) any distribution that is--
``(A) a minimum required distribution described in
section 4974(b) of the Internal Revenue Code of 1986;
``(B) permitted under section 203(e)(1) to be made
without the consent of the participant; or
``(C) in an amount that is less than 25 percent of
the account balance, but not more than once per
account;
``(2) any distribution in the form of a qualified joint and
survivor annuity (as defined in section 205(d)(1)), a qualified
optional survivor annuity (as defined in section 205(d)(2)), a
qualified preretirement survivor annuity (as defined in section
205(e)), or a series of substantially equal periodic payments
(not less frequently than annually) made for the joint lives
(or life expectancies) of the participant and the participant's
spouse; or
``(3) in the case of a participant who does not elect a
form of benefit described in paragraph (2) under the plan or
who is participating in a plan that does not provide such a
form of benefit, any distribution of the participant's entire
nonforfeitable accrued benefit if 50 percent of such accrued
benefit is transferred to an individual retirement plan (as
defined in section 7701(a)(37) of the Internal Revenue Code of
1986) of the spouse of the participant.
A transfer described in paragraph (3) to an individual retirement plan
shall be treated in the same manner as a transfer under section
408(d)(6) of the Internal Revenue Code of 1986.
``(d) Exceptions for Certain Rollover Contributions.--Subsection
(a) shall not apply to any distribution, involving a participant who
has a spouse, that is an eligible rollover distribution (as defined in
section 402(f)(2)(A) of the Internal Revenue Code of 1986) made in the
form of a direct trustee-to-trustee transfer within the meaning of
section 401(a)(31) of the Internal Revenue Code of 1986--
``(1) to a plan to which this section or section 205
applies; or
``(2) to an individual retirement plan (as defined in
section 7701(a)(37) of the Internal Revenue Code of 1986) if--
``(A) the beneficiary of such plan is the spouse of
the participant, or the spousal consent requirements of
subsection (e) are met with respect to any designation
of 1 or more other beneficiaries; and
``(B) under the terms of the individual retirement
plan, the beneficiary of such plan (whether the spouse
or other beneficiary designated under paragraph (1))
may not be changed unless--
``(i) the spousal consent requirements of
subsection (e) are met with respect to any such
change, or
``(ii) the spousal consent under
subparagraph (A) to the designation of a
beneficiary other than the spouse expressly
permits such designation to be changed without
the further consent of the spouse.
``(e) Spousal Consent Requirements.--
``(1) In general.--For purposes of this section, except as
provided in paragraph (2), the spousal consent requirements of
this subsection are met with respect to any distribution or any
designation or change of beneficiary if--
``(A) the plan provides to each participant, within
a reasonable period of time before such distribution or
designation or change of beneficiary is made and
consistent with such regulations as the Secretary of
the Treasury may prescribe, a written explanation of
the rights of the participant and the participant's
spouse under this section;
``(B) the spouse of the participant consents in
writing to the distribution or designation or change of
beneficiary;
``(C) in the case of a distribution, the written
consent under subparagraph (B) is made during the
consent period; and
``(D) the written consent under subparagraph (B)--
``(i) acknowledges the effect of such
distribution or designation or change of
beneficiary; and
``(ii) is witnessed by a plan
representative or a notary public.
``(2) Exceptions under section 205 to apply.--The
requirements of paragraph (1) (other than subparagraph (A)
thereof) shall not apply with respect to any distribution or
designation or change of beneficiary if a participant
establishes to the satisfaction of the plan administrator
that--
``(A) there is no spouse;
``(B) the participant and the participant's spouse
have not been married for at least 1 year as of the
date of the distribution or designation or change of
beneficiary; or
``(C) such consent cannot be obtained because--
``(i) the spouse cannot be located; or
``(ii) of such other circumstances as the
Secretary of the Treasury, in consultation with
the Secretary of Labor, may by regulations
prescribe.
``(3) Consent limited to spouse and event.--Any written
consent by a spouse under paragraph (1), or the establishment
by a participant that an exception under paragraph (2) (other
than subparagraph (A) thereof) applies with respect to a
spouse, shall be effective only with respect to that spouse and
to the distribution or designation or change of beneficiary to
which it relates.
``(4) Consent period.--For purposes of this subsection, the
term `consent period' means, with respect to any distribution--
``(A) the 90-day period immediately preceding the
date of such distribution; or
``(B) such other period as the Secretary of the
Treasury may provide.
``(f) Discharge of Plan From Liability.--Rules similar to the rules
of section 205(c)(6) shall apply for purposes of this section.''.
(2) Clerical amendment.--The table of sections of part 2 of
subtitle B of title I of the Employee Retirement Income
Security Act of 1974 is amended by inserting after the item
relating to section 205 the following new item:
``Sec. 205A. Additional spousal consent requirements.''.
(3) Right of action.--Section 502(a) of the Employee
Retirement Income Security Act of 1974 (29 U.S.C. 1132) is
amended--
(A) by striking ``or'' at the end of paragraph
(10);
(B) by striking the period at the end of paragraph
(11) and inserting ``; or''; and
(C) by adding at the end the following new
paragraph:
``(12) by an individual for appropriate relief in the case
of a violation of the individual's rights under section
205A.''.
(b) Conforming Amendment to Internal Revenue Code of 1986.--Section
401(a) of the Internal Revenue Code of 1986 is amended by inserting
after paragraph (17) the following new paragraph:
``(18) Additional spousal consent requirements.--
``(A) In general.--In the case of a defined
contribution plan to which paragraph (11) does not
apply, except as provided in subsections (c) and (d), a
trust forming part of such plan shall not constitute a
qualified trust under this section unless no
distribution may be made under the plan unless the
spousal consent requirements of subparagraph (E) are
met.
``(B) Coordination with paragraph (11).--Nothing in
this paragraph shall be construed to exempt a defined
contribution plan from the requirements of paragraph
(11) with respect to any participant.
``(C) Exceptions for certain distributions.--
Subparagraph (A) shall not apply to--
``(i) any distribution that is--
``(I) a minimum required
distribution described in section
4974(b),
``(II) permitted under section
411(a)(11) to be made without the
consent of the participant, or
``(III) in an amount that is less
than 25 percent of the account balance,
``(ii) any distribution in the form of a
qualified joint and survivor annuity (as
defined in section 417(b)), a qualified
optional survivor annuity (as defined in
section 417(g)), a qualified preretirement
survivor annuity (as defined in section
417(c)), or a series of substantially equal
periodic payments (not less frequently than
annually) made for the joint lives (or life
expectancies) of the participant and the
participant's spouse, or
``(iii) in the case of a participant who
does not elect a form of benefit described in
clause (ii) under the plan or who is
participating in a plan that does not provide
such a form of benefit, any distribution of the
participant's entire nonforfeitable accrued
benefit if 50 percent of such accrued benefit
is transferred to an individual retirement plan
of the spouse of the participant.
A transfer described in clause (iii) to an individual
retirement plan shall be treated in the same manner as
a transfer under section 408(d)(6).
``(D) Exceptions for certain rollover
contributions.--Subparagraph (A) shall not apply to any
distribution, involving a participant who has a spouse,
that is an eligible rollover distribution (as defined
in section 402(f)(2)(A)) made in the form of a direct
trustee-to-trustee transfer within the meaning of
paragraph (31)--
``(i) to a plan to which this paragraph or
paragraph (11) applies, or
``(ii) to an individual retirement plan
if--
``(I) the beneficiary of such plan
is the spouse of the participant, or
the spousal consent requirements of
subparagraph (E) are met with respect
to any designation of 1 or more other
beneficiaries, and
``(II) under the terms of the
individual retirement plan, the
beneficiary of such plan (whether the
spouse or other beneficiary designated
under subclause (I)) may not be changed
unless--
``(aa) the spousal consent
requirements of subparagraph
(E) are met with respect to any
such change, or
``(bb) the spousal consent
under subclause (I) to the
designation of a beneficiary
other than the spouse expressly
permits such designation to be
changed without the further
consent of the spouse.
``(E) Spousal consent requirements.--
``(i) In general.--For purposes of this
paragraph, except as provided in clause (ii),
the spousal consent requirements of this
subparagraph are met with respect to any
distribution or any designation or change of
beneficiary if--
``(I) the plan provides to each
participant, within a reasonable period
of time before such distribution or
designation or change of beneficiary is
made and consistent with such
regulations as the Secretary may
prescribe, a written explanation of the
rights of the participant and the
participant's spouse under this
paragraph,
``(II) the spouse of the
participant consents in writing to the
distribution or designation or change
of beneficiary,
``(III) in the case of a
distribution, the written consent under
subclause (II) is made during the
consent period, and
``(IV) the written consent under
subclause (II)--
``(aa) acknowledges the
effect of such distribution or
designation or change of
beneficiary, and
``(bb) is witnessed by a
plan representative or a notary
public.
``(ii) Exceptions under section 417 to
apply.--The requirements of clause (i) (other
than subclause (I) thereof) shall not apply
with respect to any distribution or designation
or change of beneficiary if a participant
establishes to the satisfaction of the plan
administrator that--
``(I) there is no spouse,
``(II) the participant and the
participant's spouse have not been
married for at least 1 year as of the
date of the distribution or designation
or change of beneficiary, or
``(III) such consent cannot be
obtained because--
``(aa) the spouse cannot be
located, or
``(bb) of such other
circumstances as the Secretary,
in consultation with the
Secretary of Labor, may by
regulations prescribe.
``(iii) Consent limited to spouse and
event.--Any written consent by a spouse under
clause (i), or the establishment by a
participant that an exception under clause (ii)
(other than subclause (I) thereof) applies with
respect to a spouse, shall be effective only
with respect to that spouse and to the
distribution or designation or change of
beneficiary to which it relates.
``(iv) Consent period.--For purposes of
this subparagraph, the term `consent period'
means, with respect to any distribution--
``(I) the 90-day period immediately
preceding the date of such
distribution, or
``(II) such other period as the
Secretary may provide.''.
SEC. 4. EFFECTIVE DATES.
(a) Increasing Spousal Protection Under Defined Contribution
Plans.--Except as provided in subsection (b), the amendments made by
section 3 shall apply to distributions and rollover contributions made
in plan years beginning after the date that is 1 year after the date of
the enactment of this Act.
(b) Provisions Relating to Plan Amendments.--
(1) In general.--If this paragraph applies to any plan or
contract amendment, such plan or contract shall be treated as
being operated in accordance with the terms of the plan during
the period described in paragraph (2)(C).
(2) Amendments to which paragraph (1) applies.--
(A) In general.--Paragraph (1) shall apply to any
amendment to any plan or annuity contract which is
made--
(i) pursuant to the amendments made by
section 3 or pursuant to any regulation issued
under section 205A of the Employee Retirement
Income Security Act of 1974 or section
401(a)(18) of the Internal Revenue Code of
1986, as added by section 3; and
(ii) on or before the last day of the first
plan year beginning on or after the date that
is 3 years after the date described in
subsection (a).
In the case of a governmental plan (as defined in
section 414(d) of the Internal Revenue Code of 1986),
this subparagraph shall be applied by substituting ``5
years'' for ``3 years'' in clause (ii).
(B) Conditions.--Subparagraph (A) shall not apply
to any amendment unless--
(i) the plan or contract is operated as if
such plan or contract amendment were in effect
for the period described in subparagraph (C);
and
(ii) such plan or contract amendment
applies retroactively for such period.
(C) Period described.--The period described in this
subparagraph is the period--
(i) beginning on the effective date
specified by the plan; and
(ii) ending on the date described in
subparagraph (A)(ii) (or, if earlier, the date
the plan or contract amendment is adopted).
SEC. 5. ACCESS TO INDEPENDENT CONSUMER INFORMATION AND UNDERSTANDING.
(a) Definitions.--In this section--
(1) the term ``consumer'' means any person who purchases or
acquires any goods, products, services, or credit related to
the retirement or later life economic security of the consumer;
and
(2) the term ``financial product or service provider''
means any person who engages in the business of providing any
retirement financial product or service to any consumer.
(b) Required Link to Consumer Awareness Information.--In any offer
for the sale, exchange, or other transfer of a retirement financial
product or service to a consumer carried out by a financial product or
service provider, such provider shall provide, in a manner consistent
with subsection (c), an easily accessible link to the website of the
Bureau of Consumer Financial Protection (referred to in this section as
the ``CFPB'') at which the consumer may access information, literature,
guides, programs, tools, strategies, or any other resource produced by
the CFPB or other Federal agency relating to retirement planning or
later life economic security.
(c) Determination.--In order to ensure that the requirement under
subsection (b) is effectively carried out, the Financial Literacy and
Education Commission shall determine and publish on its website the
appropriate link to the CFPB's website for access to the CFPB's and
other Federal agencies' consumer education materials, the preferred
format of such link, and any accompanying description of the CFPB and
the consumer education materials associated with such link.
SEC. 6. GRANTS TO PROMOTE FINANCIAL LITERACY FOR WOMEN.
(a) Authorization of Grant Awards.--The Secretary of Labor, acting
through the Director of the Women's Bureau, shall award grants on a
competitive basis to eligible entities to enable such entities to
improve the financial literacy of women who are working age or in
retirement, to increase the likelihood of the women realizing a secure
and stable retirement.
(b) Definition of Eligible Entity.--In this section, the term
``eligible entity'' means a community-based organization with proven
experience and expertise in serving working-age or retired women.
(c) Application.--An eligible entity that desires to receive a
grant under this section shall submit an application to the Secretary
of Labor at such time, in such manner, and accompanied by such
information as such Secretary may require.
(d) Minimum Grant Amount.--The Secretary of Labor shall award
grants under this section in amounts of not less than $250,000.
(e) Use of Funds.--An eligible entity that receives a grant under
this section shall use the grant funds to develop and implement
financial literacy education, and related activities including
outreach, awareness building, and counseling to increase women's
knowledge of retirement planning and consumer, economic, and personal
financial concepts.
(f) Authorization of Appropriations.--There is authorized to be
appropriated to carry out this section $100,000,000 for fiscal year
2026 and each succeeding fiscal year.
SEC. 7. GRANTS TO ASSIST LOW-INCOME WOMEN AND SURVIVORS OF DOMESTIC
VIOLENCE IN OBTAINING QUALIFIED DOMESTIC RELATIONS
ORDERS.
(a) Authorization of Grant Awards.--The Secretary of Labor, acting
through the Director of the Women's Bureau and in conjunction with the
Assistant Secretary of the Employee Benefits Security Administration,
shall award grants, on a competitive basis, to eligible entities to
enable such entities to assist low-income women and survivors of
domestic violence in obtaining qualified domestic relations orders and
ensuring that those women actually obtain the benefits to which they
are entitled through those orders.
(b) Definition of Eligible Entity.--In this section, the term
``eligible entity'' means a community-based organization with proven
experience and expertise in serving women and the financial and
retirement needs of women.
(c) Application.--An eligible entity that desires to receive a
grant under this section shall submit an application to the Secretary
of Labor at such time, in such manner, and accompanied by such
information as the Secretary of Labor may require.
(d) Minimum Grant Amount.--The Secretary of Labor shall award
grants under this section in amounts of not less than $250,000.
(e) Use of Funds.--An eligible entity that receives a grant under
this section shall use the grant funds to develop programs to offer
help to low-income women or survivors of domestic violence who need
assistance in preparing, obtaining, and effectuating a qualified
domestic relations order.
(f) Authorization of Appropriations.--There is authorized to be
appropriated to carry out this section $100,000,000 for fiscal year
2026 and each succeeding fiscal year.
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