U.S. Senators Bill Cassidy, Tim Scott, Roger Marshall, and Thom Tillis have introduced the Strengthening Benefit Plans Act of 2025. This legislation aims to allow overfunded 401(h) retiree pension accounts to be transferred for active healthcare programs. The 401(h) plan is designed for post-retirement medical benefits, and this bill would enable employers to fund these benefits with previously paid contributions, avoiding additional out-of-pocket costs.
Dr. Cassidy commented on the potential economic impact of the bill: “Allowing businesses to reinvest in their employees’ health care strengthens the nation’s economy.” He emphasized that it permits companies to use excess funds from overfunded 401(h) accounts for employee health care needs.
Senator Scott highlighted the dual benefit of this approach: “Allowing for surplus dollars to be shifted to active healthcare plans is a commonsense approach that benefits both businesses and employees.” He described it as a targeted solution enabling employers to redirect funds effectively.
Senator Marshall expressed support by stating: “The Strengthening Benefit Plans Act of 2025 is good for workers, and it’s good for businesses.” He noted that it provides an opportunity for employers to enhance employee health plans by reinvesting in them.
Senator Tillis pointed out the advantages for employees: “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.” He called it a smart solution that protects retiree obligations while benefiting today's workforce.
Further details about the bill can be accessed through its full text.
