Scott, Cassidy, Colleagues Introduce Pension Healthcare Legislation

WASHINGTON — U.S. Senators Tim Scott (R-S.C.), Bill Cassidy (R-La.), Roger Marshall (R-Kan.) and Thom Tillis, (R-N.C.) introduced the Strengthening Benefit Plans Act of 2025. This legislation would allow for overfunded 401(H) retiree pension accounts to be transferred to help pay for active healthcare programs. 

“Allowing for surplus dollars to be shifted to active healthcare plans is a common sense approach that benefits both businesses and employees,” said Senator Scott. “This targeted solution allows for employers to redirect funds to better serve those who make their businesses work.”

“Allowing businesses to reinvest in their employees’ health care strengthens the nation’s economy,” said Dr. Cassidy. “This commonsense legislation allows companies to transfer excess funds from overfunded 401(h) accounts to support their employees’ health care needs.”  

“The Strengthening Benefit Plans Act of 2025 is good for workers, and it’s good for businesses,” said Senator Marshall. “It will allow employers to reinvest in employee health plans, strengthening and expanding benefits for workers. That’s what I call commonsense policy.”

“This legislation gives hard-working employees a stronger financial future, retirement security, and better health coverage by allowing employers to reinvest surplus benefit assets into the current workforce,” said Senator Tillis. “This is a smart, commonsense solution that protects retiree obligations while benefiting today’s workforce.”

“BMW thanks Senator Scott for his support of this important issue. He is always a strong advocate for us and our associates. Senator Scott’s bill would allow surplus assets to fund healthcare benefits for a broader population of employees which under current regulation is not possible. We applaud his efforts and look forward to working with him to get the legislation enacted into law,” said Bryan Jacobs, Vice President External Affairs, BMW.

BACKGROUND

• A 401(H) plan is an employer-sponsored fund for post-retirement medical benefits.
• By funding these benefits with previously paid contributions, employers would avoid paying additional costs out of pocket.

The full text of the legislation can be found here.

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