“President Trump is moving to expand quality, affordable workplace retirement plan options for America’s small businesses and their employees. Many small businesses would like to offer retirement benefits to their employees, but are discouraged by the cost and complexity of running their own plans. Association Retirement Plans give these employers a simple and less burdensome way to offer valuable retirement benefits to their employees.”
– Secretary of Labor Alexander Acosta
Proposal to Help Small Businesses Strengthen Retirement Security for Millions of American Workers
On October 22, 2018, the U.S. Department of Labor announced a Notice of Proposed Rulemaking to help small businesses strengthen retirement security for American workers.
The proposed rule would make it easier for small businesses to offer retirement savings plans to their workers through Association Retirement Plans, which would allow small businesses to band together to offer 401(k) plans to their employees.
Under the proposal, Association Retirement Plans could be offered by associations of employers in a city, county, state, or a multi-state metropolitan area, or in a particular industry nationwide. Sole proprietors, as well as their families, would also be permitted to join such plans. In addition to association sponsors, the plans could also be sponsored through Professional Employer Organizations.
In August 2018, President Trump issued an Executive Order “Strengthening Retirement Security in America.”