Spending Package Includes Measure to Help Small Businesses Access Retirement Options
Statement by John Arensmeyer, Founder & CEO of Small Business Majority, on provisions that were included in appropriations legislation passed by the U.S. Senate today that will help small businesses that struggle to access retirement benefits
Too many of our nation’s entrepreneurs and small employers struggle to access critical retirement benefits, which is why we’re glad the U.S. Senate included a measure to address this in the FY 2020 appropriations package it sent to the president for signature today.
The bipartisan legislation, known as the SECURE Act, would encourage more small businesses to participate in retirement plans by providing tax credits for employers that set up automatic enrollment for their employees. Additionally, it would allow more businesses to join multi-employer pension plans, making it easier for employers of any size to offer retirement benefits.
This legislation is needed because the vast majority of small businesses are unable to offer retirement plans. More than three-quarters of workers employed by businesses with fewer than 25 employees do not have any sort of pension or retirement plan at all, mainly because most small businesses simply don’t have the funds or staff to offer and manage retirement plans. Meanwhile, 4 in 10 solo entrepreneurs do not have any sort of retirement savings.
We must address the retirement savings gap that is preventing small businesses and their employees from preparing for the future. We’re glad Congress took steps to tackle this in its 2020 spending plan, and we urge policymakers to consider additional ways to help small businesses access retirement savings.
About Small Business Majority
Small Business Majority was founded and is run by small business owners to ensure America’s entrepreneurs are a key part of a thriving and inclusive economy. We actively engage our network of more than 58,000 small business owners in support of public policy solutions and deliver information and resources to entrepreneurs that promote small business growth. 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. Learn more about us on our website and follow us on Twitter, Facebook and Instagram.