Sunday, April 26, 2015

Home News Legislation might help smaller firms offer retirement plans

Legislation might help smaller firms offer retirement plans

Industry News

Employers say they need a certain level of profitability before considering sponsoring a retirement plan.

USA Today | March 8, 2012

Many small-business owners say that they want to offer their workers a retirement plan but obstacles are holding them back. Wednesday, a Senate panel said it would introduce legislation to help address the problem.

People who work for smaller businesses face big challenges in saving for retirement. Only 36 percent of those who worked for businesses with 10 to 100 employees last year had access to a company retirement plan, the Employee Benefit Research Institute says. The lack of a company-sponsored plan affects 71 percent of businesses with fewer than 25 employees, the Government Accountability Office said in a 2009 report.

Small-business owners say they are not trying to avoid a retirement plan. In fact, 37% with more than six employees say they are under pressure by their workers to provide a plan, Nationwide Financial reported in November. And 78% of the owners said they need a retirement plan to better attract qualified employees.

Wednesday, at a Senate Special Committee on Aging hearing looking into the problem, the GAO released an analysis that found general economic uncertainty makes small employers reluctant to commit to such long-term expenses. Employers say they need a certain level of profitability before they would consider sponsoring a retirement plan, the GAO said.

For the rest of the story, click here.

Top news

Right place, right time

Know your plants' needs before you start to cut.

Cut, chop or saw?

Choose the right tools for your clients' trees and shrubs.

Profit or loss

Figure out your gross margin and you’ll find out if you’re making money or just buying work.

Kawasaki division consolidates functions

The research and development engineering group will be moved to Grand Rapids, Mich.

Generate more business through consumer financing

L&L will host a free webinar to help you understand how to be more budget-friendly for customers.

x