U.S. Senators Tim Scott (R-SC) and Jacky Rosen (D-NV) have introduced a bill they say makes it easier for small businesses to deliver retirement benefits to workers through reduced administrative expenses.
The Expanding Small Business Retirement Choices Act amends existing law to allow small business employers to use pension plan funds to meet expenses related to pension plan design changes, which results in reduced costs of providing better plans to workers.
“Retirement planning is often a daunting and complicated process for millions of people concerned about securing their family’s future,” said Scott, a senior member of the Senate Special Committee on Aging. “This bill will ease the burden on workers in small businesses who do not always benefit from the same pension plan features as large businesses. Leveling the playing field to maximize the benefits for the financial future of all Americans should be a goal we can all achieve.
Rosen said small businesses make up more than 99% of Nevada’s businesses and employ more than 500,000 people in the state.
“This bipartisan legislation will ensure small business workers have access to high-quality retirement benefits without facing a cost barrier,” Rosen said. “Removing this bureaucratic red tape and added costs will strengthen small businesses and provide their employees with the best and most comprehensive retirement plans possible.”
American Retirement Association CEO Brian Graff said retirement plan design features that include automatic enrollment and financial wellness programs have a major impact on the financial health and security of the workers’ retirement.
“The increased flexibility to cover the expenses associated with these programs means that more employers – and especially small business owners – will now be able to provide these benefits to even more workers,” Graff said.