U.S. Sens. Tim Scott (R-SC) and Jacky Rosen (D-NV) have introduced a bill they said eases the efforts of small businesses to offer worker retirement benefits via reduced administrative expenses.
The Increasing Small Business Retirement Choices Act changes existing law to enable small business employers to use retirement plan funds to address expenses affiliated with retirement plan design changes — resulting 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 the future of their families,” Scott, ranking member of the Senate Special Committee on Aging, said. “This bill will lighten the burden on workers at small businesses that do not always benefit from the same features of retirement plans under larger companies. Leveling the playing field to maximize benefits for the financial futures of all Americans should be a goal we can all get behind.”
Rosen said small businesses represent over 99 percent of Nevada’s businesses and employ over 500,000 people in the state.
“This bipartisan legislation will ensure small business workers have access to high-quality retirement plan benefits without facing a cost barrier,” Rosen said. “Removing this bureaucratic red tape and additional cost will make small businesses stronger and provide their workers 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 workers’ financial health and retirement security.
“The expanded flexibility to cover the expenses associated with these programs means that more employers — and most particularly small business owners — will now be able to bring those advantages to even more workers,” Graff said.