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Bill Would Expand Access to Pension-Linked Emergency Savings Accounts

To: Members of Senate Committee on Health, Education, Labor and Pensions
From: National Taxpayers Union
Date: July 30, 2026
Subject: NTU’s views on the July 30 Markup

I. Introduction

On behalf of National Taxpayers Union, the nation’s oldest taxpayer advocacy organization, we write to express our views on legislation slated for consideration before the Senate Committee on Health, Education, Labor and Pensions on July 30, 2026. While NTU recognizes that the Committee is considering a broader package of legislative proposals, we would like to highlight one bill in particular that warrants special attention, S. 3333, the Emergency Savings Enhancement Act. NTU applauds the Committee for your continued efforts to advance proposals that protect the interests of taxpayers and uphold free-market principles.

II. Legislation

S. 3333, the Emergency Savings Enhancement Act - Support

Authored by Sens. Young (R-IN) and Booker (D-NJ), this bipartisan legislation expands access to Pension-Linked Emergency Savings Accounts (PLESAs) by raising the maximum contribution limit from $2,500 to $5,000 and eliminating the PLESA exclusion for highly compensated employees. These accounts allow individuals to build emergency savings through their workplace retirement plans. Employees can withdraw funds without incurring early withdrawal penalties or other taxes that typically apply to traditional retirement accounts. Workers often change income brackets multiple times throughout their lives, and rescinding the exclusion for high-earning employees avoids the need for costly recordkeeping to verify eligibility. Importantly, this legislation does not create any new federal mandates that would compel private employers to participate in PLESAs. NTU supports this legislation.

III. Conclusion

Should you have any questions about the recommendations in this memo, please do not hesitate to reach out to Alexander Ciccone (aciccone@ntu.org).