S.2003

Strengthening Benefit Plans Act of 2025 permits certain excess plan assets to be used for benefits for active employees.

The Strengthening Benefit Plans Act of 2025 amends the Internal Revenue Code to allow the transfer of excess health assets from retiree health plans to fund benefits for active employees. This applies to pension plans with excess health assets for a fiscal year, defined as assets exceeding 125% of the employer's total liability for benefits. The bill also allows transfers of surplus defined benefit plan assets to defined contribution plans, subject to certain conditions. These changes aim to support active employees with current benefit plan expenses and retirement contributions.