On Friday, President Donald Trump signed an Executive Order on Strengthening Retirement Security in America. The Order directs the Labor and Treasury Departments to consider regulatory changes that would make it easier for small businesses to pool resources to offer employees workplace retirement accounts (called “multiple employer plans” or “MEPs”), among other provisions. The Order comes at the same time Congress is considering two different bipartisan bills that would also encourage the creation of MEPs.
The Aspen Institute Financial Security Program’s Executive Director Ida Rademacher released the following statement in response to Friday’s news:
“I am encouraged by the growing chorus of federal and state leaders committed to enhancing retirement security for American families, including the President’s recent statement that expanding workplace retirement plans is a priority of his administration. The coverage gap is the most fundamental challenge facing our current retirement system, leaving roughly 55 million Americans without access to the type of tax-advantaged, payroll-facilitated savings plans that are proven to increase retirement security. Employer-based plans are particularly rare for employees of small businesses and contingent workers, both of whom are rightly targeted by the President’s Order. We look forward to reviewing the specific proposals that come from this Order with the hope that they will help build a more robust and inclusive savings system for the nation.”
For more information on multiple employer plans, as well as other strategies to close the small business retirement coverage gap, we encourage you to read the small business blog series Aspen FSP published last summer.
For more information on the Aspen Institute Financial Security Program visit AspenFSP.org.
