The Pensions for All Act requires every employer in the United States to provide their workers with a retirement plan that offers benefits equal to what federal government employees receive through the Federal Employees Retirement System (FERS), or alternatively, allow their employees to join FERS directly. Self-employed individuals face the same requirement—they must either enroll in a comparable retirement program or participate in FERS.

Under this bill, employers and self-employed workers can switch between options at least once per year. The law expands FERS to include private sector employees and self-employed individuals who don't currently have access to comparable retirement benefits. Both employers and workers would contribute to the system, with contribution rates scaled based on company size and individual income. Smaller employers (those with annual revenue under $25 million) and lower-income self-employed individuals would pay reduced contribution rates, making the system more affordable for smaller businesses and individuals with modest incomes.

The practical effect is that millions of American workers who currently lack employer-sponsored pensions would gain access to a stable, defined-benefit retirement system similar to what federal employees enjoy. This would fundamentally change how retirement security works in the private sector, shifting from the current system where many workers rely on 401(k)s and personal savings to a more guaranteed pension model. The bill also allows these new participants to build retirement credits through their work, which would count toward their eventual pension benefits.