Legislation Would Reduce Administrative Barriers to Improve Retirement Plans for Workers at Small Businesses
WASHINGTON, DC – Today, U.S. Senator Jacky Rosen (D-NV) announced that her bipartisan Increasing Small Business Retirement Choices Act with Senator Tim Scott (R-SC) advanced out of the Senate Committee on Health, Education, Labor and Pensions as part of a bipartisan pensions package. This legislation would make it easier for small businesses to offer more comprehensive retirement benefits to their workers by reducing administrative expenses.
“Nevada small businesses are central to our economy, employing more than half a million Nevadans up and down the state,” said Senator Rosen. “Our bipartisan legislation will make it easier for small businesses to offer employees better retirement plans by reforming outdated regulations that tie employers’ hands and make it harder for them to afford high-quality plan features for their workers.”
Currently, employers who offer 401(k) retirement plans and want to consider a “plan design change,” such as auto-enrollment or auto-escalation, must pay upfront out-of-pocket administrative costs, even if such changes might help employees save more money. This bipartisan bill would change existing law to allow small business employers to use retirement plan funds to pay expenses associated with retirement plan design changes, lowering the cost of providing better plans to workers.