Women's Retirement Protection Act
- Bill Number
- H.R. 2023
- Origin Chamber
- House
- Congress
- 119th Congress, Session 1
- Policy Area
- Labor and Employment
- Status
- Introduced
- Latest Action
- 2025-03-11: 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.
- Last Updated
- 2026-07-07T08:05:43Z
AI-Generated Summary
Purpose of the Legislation
The Women's Retirement Protection Act (H.R. 2023) seeks to enhance protections for spouses, particularly women, in retirement savings by requiring spousal consent for certain distributions from defined contribution plans (such as 401(k)s, which are individual account-based retirement plans funded by employee and employer contributions). It also aims to improve financial literacy and access to resources for women, addressing gender disparities in retirement security highlighted in congressional findings, such as lower savings rates, wage gaps, and higher poverty among older women.
Key Provisions
- Spousal Consent Requirements (Section 3): Amends the Employee Retirement Income Security Act of 1974 (ERISA) by adding a new section (205A) that mandates written spousal consent—witnessed by a plan representative or notary—for distributions, beneficiary designations, or changes from defined contribution plans where such protections do not already apply. Consent must acknowledge the effects and occur within a 90-day "consent period" before the action, with the plan providing a written explanation of rights. Similar changes are made to the Internal Revenue Code (IRC) to ensure tax-qualified status.
- Exceptions: No consent needed for minimum required distributions (mandatory withdrawals starting at age 73), small distributions (under 25% of account balance, once per account), certain annuity forms providing survivor benefits, full account distributions with 50% transferred to the spouse's individual retirement account (IRA), or direct rollovers to another qualified plan or spousal IRA (with beneficiary rules protecting the spouse).
- Proof of No Consent Needed: Participants can show no spouse exists, the marriage is less than one year old, or the spouse cannot be located or other circumstances apply (per regulations).
- Adds a new right of action under ERISA for individuals to seek relief for violations of these rules.
- Effective Dates (Section 4): Applies to distributions and rollovers in plan years starting more than one year after enactment. Plans have up to three years (five for government plans) to amend documents, treated as compliant if operated under the new rules retroactively.
- Consumer Information Access (Section 5): Requires financial providers offering retirement products or services to include an easy-to-access link to the Consumer Financial Protection Bureau (CFPB) website for free federal resources on retirement planning and economic security. The Financial Literacy and Education Commission will specify the link format and description.
- Grants for Women's Financial Literacy (Section 6): The Department of Labor (DOL), through the Women's Bureau, awards competitive grants (minimum $250,000 each) to community-based organizations experienced in serving women. Funds support education, outreach, counseling on retirement planning, and personal finance. Authorizes $100 million annually starting in fiscal year 2026.
- Grants for Qualified Domestic Relations Orders (QDROs) Assistance (Section 7): DOL, with the Employee Benefits Security Administration, awards similar grants to help low-income women and domestic violence survivors prepare, obtain, and enforce QDROs (court orders dividing retirement benefits in divorce or separation). Authorizes $100 million annually starting in fiscal year 2026.
Significant Changes to Existing Law
- ERISA and IRC Amendments: Introduces spousal protections to defined contribution plans, which previously lacked them unlike defined benefit plans (traditional pensions guaranteeing fixed payments). This fills a gap left by prior laws like the SECURE 2.0 Act, which expanded coverage but not spousal safeguards.
- New Enforcement and Support Mechanisms: Creates a specific civil enforcement right under ERISA for spousal consent violations. Adds mandatory consumer education links and two new grant programs, which did not exist before, targeting women's financial barriers.
- No Changes to Defined Benefit Plans: Builds on existing spousal rules without altering them, focusing only on individual account plans.
Potential Impacts
- On Citizens: Strengthens retirement security for spouses by preventing unauthorized withdrawals or beneficiary changes, potentially preserving more savings for families, especially women facing divorce (noting retirement assets are often the largest post-home asset divided). Grants could empower low-income and vulnerable women with knowledge and legal aid, reducing poverty risks in later life. The information link may increase awareness of free resources, aiding better decision-making.
- On Government Agencies: DOL gains responsibilities for grant administration and coordination with CFPB; the Employee Benefits Security Administration will oversee QDRO support. CFPB's website traffic may rise, requiring minor resource updates. New appropriations ($200 million total annually) could strain budgets if not funded, but provide tools for equity-focused programs.
- On International Relations: No direct impacts, as the bill focuses on domestic U.S. retirement policy.
Main Stakeholders Affected
- Spouses and Plan Participants: Married individuals in defined contribution plans, particularly women as primary beneficiaries or lower earners, gain protections against unilateral decisions.
- Women, Especially Vulnerable Groups: Low-wage, part-time, low-income, older, or domestic violence survivors benefit from grants, literacy programs, and QDRO aid to close gender retirement gaps.
- Plan Administrators and Employers: Must update plans, provide explanations, obtain consents, and handle potential transfers or litigation, increasing administrative costs but aligning with federal standards for tax-qualified plans.
- Community Organizations: Eligible nonprofits can access grants to expand services for women's financial education and legal support.
- Financial Providers: Required to add CFPB links in offerings, with minimal added burden but potential for improved consumer trust.
Notable Legal, Constitutional, or Political Implications
- Legal: Enhances ERISA's fiduciary and participant protection framework, potentially leading to more lawsuits via the new right of action if consents are mishandled. Aligns tax code with ERISA for consistency, but plans must comply to maintain tax benefits. Regulations from Treasury and Labor Secretaries will clarify exceptions, reducing ambiguity.
- Constitutional: No apparent challenges; the bill promotes equal protection in economic security without infringing on rights, focusing on voluntary consents and exceptions for practical barriers.
- Political: Addresses documented gender inequities (e.g., wage gaps, caregiving roles) through targeted supports, potentially advancing bipartisan retirement reform goals while emphasizing women's issues. Findings underscore social policy priorities like poverty reduction, but implementation depends on appropriations and could face debate over costs or administrative burdens on plans.
This summary was generated by AI and may contain inaccuracies. Refer to the official source document for the authoritative text.
Sponsor
Rep. Underwood, Lauren [D-IL-14]
Cosponsors (16)
Rep. Bonamici, Suzanne [D-OR-1], Rep. Schakowsky, Janice D. [D-IL-9], Rep. Norcross, Donald [D-NJ-1], Rep. McIver, LaMonica [D-NJ-10], Del. Norton, Eleanor Holmes [D-DC-At Large], Rep. Tlaib, Rashida [D-MI-12], Rep. Grijalva, Raúl M. [D-AZ-7], Rep. Pingree, Chellie [D-ME-1], Rep. Lee, Summer L. [D-PA-12], Rep. McClain Delaney, April [D-MD-6], Rep. McGovern, James P. [D-MA-2], Rep. Carbajal, Salud O. [D-CA-24], Rep. Sykes, Emilia Strong [D-OH-13], Rep. Haridopolos, Mike [R-FL-8], Rescom. Hernández, Pablo Jose [D-PR-At Large], Rep. Ross, Deborah K. [D-NC-2]
Recent Actions
- 2025-03-11: 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.
- 2025-03-11: 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.
- 2025-03-11: 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.
- 2025-03-11: Introduced in House
- 2025-03-11: Introduced in House
Bill Versions
- Women's Retirement Protection Act — issued 2025-03-11 — PDF (23 pages)