The Strengthening Benefit Plans Act of 2025 introduces new provisions to the Internal Revenue Code, enabling employers to utilize excess assets from certain benefit plans for other employee benefits. Specifically, it permits the transfer of excess health assets from retiree health accounts and surplus assets from defined benefit pension plans to support active employees. Title I of the bill allows the transfer of excess health assets from a health benefits account (established under section 401(h) or held by a VEBA) to a pension plan or, under certain conditions, to a VEBA for active employee benefits. Excess health assets are defined as amounts exceeding 125 percent of the employer's total liability for retiree health benefits, excluding recent contributions or benefit reductions. These transfers are not considered taxable income for the employer, nor are they treated as employer reversions or prohibited transactions. To protect beneficiaries, the bill mandates that for five years following a transfer, the employer's cost for benefits cannot be materially reduced, nor can the benefits themselves be materially decreased. Plan administrators must also provide participants and beneficiaries with at least 60 days' notice before any such transfer, detailing the amount, recipient, and impact on nonforfeitable pension benefits. These provisions apply to taxable years beginning after December 31, 2024. Title II addresses the transfer of surplus assets from a defined benefit plan to a defined contribution plan. Surplus assets are defined as assets exceeding 110 percent of the plan's liabilities used for PBGC premium determinations. For such a transfer to occur, the defined contribution plan must qualify as a replacement plan, and all benefits under the defined benefit plan must become nonforfeitable as if the plan had terminated. Similar to Title I, these transfers are exempt from employer income tax and reversion penalties. The bill also stipulates that benefits under the recipient defined contribution plan cannot be materially reduced for four plan years after the last year funded by the transfer. Notice requirements, mirroring those for excess health asset transfers, are also in place to inform participants. These amendments are effective for plan years beginning after December 31, 2025.