Late last week, President Trump signed a new executive order intended to expand access to workplace retirement plans.
The executive order directs the Department of Labor (DOL) and the Treasury Department to consider issuing new rules that would make it easier for businesses to offer retirement plans. Specifically, the order seeks to make it easier for small businesses to join together to offer what are known as Multiple Employer Plans.
The executive order also directs DOL and Treasury to consider ways to reduce the overall administrative burden of employer retirement plans to make these plans more appealing to small businesses.
According to a fact sheet released with the executive order, 89% of workers at establishments with 500 or more employees are offered workplace retirement plans while only 53% of workers with fewer than 100 employees are offered workplace retirement plans. Small and medium sized businesses often cite concerns over administrative costs and burdens as the main reason for not offering the plans.
The order also directs Treasury to review rules on required minimum distributions from retirement plans to see if retirees could keep more money in 401(K)s and IRAs for a longer time period.
Jennifer Webb is Big “I” federal government affairs counsel.