Ending Federal Rule Permitting States to Establish Private Sector Retirement Accounts Would Harm Small Businesses
Statement from Small Business Majority Founder & CEO John Arensmeyer on yesterday’s decision by the U.S. House of Representatives to adopt two resolutions that would overturn the U.S. Department of Labor’s rule that makes it easier for states to establish retirement savings plans for private sector workers.
The U.S. House of Representatives voted yesterday to adopt HJR 66 and HJR 67, which would do significant harm to small businesses. Striking down this Department of Labor rule would have a chilling effect on states that are setting up their own retirement savings programs, which would be especially problematic for small employers, given that a majority are unable to offer retirement plans due to a variety of barriers. We strongly believe states should be allowed to decide whether to implement these types of programs and how best to administer them in order to serve small businesses and employees who struggle to save for retirement.
Small Business Majority’s state opinion polling found small business owners struggle to offer retirement savings programs due to a number of barriers, but they want to offer this benefit to their employees because it helps them attract and retain talent. What’s more, the majority of small employers are concerned their employees will not have enough saved for retirement. That’s why small businesses overwhelmingly support state efforts to establish state-administered retirement savings programs, like the Secure Choice Savings programs in Illinois, California and Oregon.
Small employers need retirement savings options for their employees that make sense for their business and their bottom line. State-administered retirement savings programs can help many small business employees better save for their futures. That is why we urge lawmakers to uphold the Labor Department’s rule and allow states to decide how best to serve their small businesses and private sector workers.
(Click here to read Small Business Majority’s letter to the U.S. House of Representatives on this topic).
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About Small Business Majority
Small Business Majority was founded and is run by small business owners to focus on solving the biggest problems facing small businesses today. Since 2005, we have actively engaged small business owners and policymakers in support of public policy solutions, and have delivered information and resources to entrepreneurs that promote small business growth and drive a strong economy. We regularly engage our network of 55,000 small business owners along with a formal strategic partnership program of more than 150 business organizations, enabling us to reach more than 500,000 entrepreneurs. Our extensive scientific polling, focus groups and economic research help us educate and inform policymakers, the media and other stakeholders about key issues impacting small businesses and freelancers, including access to capital, taxes, healthcare, retirement, entrepreneurship and workforce development. Learn more about us on our website and follow us on Twitter, Facebook and Instagram.