U.S. Senators Tim Scott, Bill Cassidy, Roger Marshall, and Thom Tillis have introduced the Strengthening Benefit Plans Act of 2025. This proposed legislation aims to allow the transfer of overfunded 401(H) retiree pension accounts to active healthcare programs.
Senator Scott stated, “Allowing for surplus dollars to be shifted to active healthcare plans is a common sense approach that benefits both businesses and employees.” He emphasized that this solution would enable employers to better serve their workforce by redirecting funds.
Dr. Cassidy supported the initiative by saying, “Allowing businesses to reinvest in their employees’ health care strengthens the nation’s economy.” He explained that the legislation would permit companies to use excess funds from overfunded 401(h) accounts for employee healthcare needs.
Senator Marshall remarked on the dual benefits of the act: “The Strengthening Benefit Plans Act of 2025 is good for workers, and it’s good for businesses.” He highlighted how it allows employers to enhance employee health plans and expand worker benefits.
Senator Tillis added that the legislation offers a financial advantage: “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.”
BMW’s Vice President External Affairs, Bryan Jacobs, expressed gratitude towards Senator Scott’s efforts: “BMW thanks Senator Scott for his support of this important issue. He is always a strong advocate for us and our associates.” Jacobs noted that under current regulations, using surplus assets for broader employee healthcare benefits is not possible but could be achieved through this bill.
The full text of the legislation is available online.
