Striking Down Rule Enabling Publicly Administered Retirement Programs Harmful for Small Businesses

For Immediate Release: 
Thursday, March 30, 2017

Statement from Small Business Majority Founder & CEO John Arensmeyer on the U.S. Senate’s vote today to adopt a resolution overturning the U.S. Department of Labor’s rule that makes it easier for municipalities to establish retirement savings plans for private sector workers

The U.S. Senate voted today to adopt HJR 67, which will do significant harm to small businesses. Striking down this Department of Labor rule will make it more difficult for local governments to establish publicly administered retirement savings programs, and will be especially problematic for small employers, given that a majority struggle to offer retirement plans. We strongly believe state and local governments should be allowed to decide whether to implement these types of programs and how best to administer them in order to serve their small businesses and private sector workers.

Small Business Majority’s state opinion polling found small business owners struggle to offer retirement savings programs due to a number of barriers like cost and administrative capacity, 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 efforts to establish publicly 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. Publicly administered retirement savings programs can help many small business employees better save for their futures. We urge the Senate not to adopt a similar resolution that would impact state retirement plans and allow state governments to decide how best to support their small business communities.

 

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.

Press State: 
National