Welcome to our 2025 Regulatory Update blog series, where we break down the year’s most important developments for retirement plan sponsors. In a year marked by shifting agency guidance and industry innovation, legislative activity has been surprisingly quiet. Let’s explore what’s on the horizon—and what’s not—in Washington.
Despite broad bipartisan support for retirement security, Congress has been relatively quiet on new retirement plan legislation since the passage of SECURE and SECURE 2.0. These landmark laws continue to shape the landscape, but 2025 has seen few substantive new bills. Even the “One Big Beautiful Bill Act,” passed in July, contained no significant defined contribution provisions.
However, two bills are worth watching. The “Helping Young Americans Save for Retirement Act” proposes lowering the minimum age for defined contribution plan eligibility from 21 to 18. If enacted, this could accelerate retirement savings for younger workers, especially as automatic enrollment becomes more common. The bill also includes an exemption from non-discrimination testing for these younger participants, making it easier for employers to adopt.
Another key proposal is the “Retirement Fairness for Charities and Educational Institutions Act of 2025,” which would allow 403(b) plans to invest in Collective Investment Trusts (CITs). CITs, already available to 401(k) plans, offer lower costs and access to a broader range of investment strategies. While this bill enjoys bipartisan support, its best chance for passage may be as part of a larger legislative package later this year.
For plan sponsors, the legislative lull means continued focus on compliance with existing laws and monitoring for any late-breaking changes that could impact plan design or participant eligibility.
While Congress has been relatively quiet, the few bills in play could have a significant impact on plan design and participant outcomes. Stay tuned as we continue our series, diving next into IRS guidance and compliance deadlines.
Download the full 2025 Regulatory Update for a comprehensive look at all the year’s changes.
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