Dept. of Labor Proposes New Small Business Retirement Plans

The U.S. Department of Labor proposed regulations Monday that would for the first time permit small businesses to join together to share the administrative costs of offering a workplace retirement plan to employees.

Oct. 23, 2018

October 23, 2018—The U.S Department of Labor (DOL) proposed regulations Monday that would permit small businesses to join together to share the costs of offering a workplace retirement plan to their employees, reported Financial Advisor Magazine.

Fewer than one-third of businesses with less than 50 employees currently offer a retirement plan, according to the General Accounting Office.

The proposed regulations, which were mandated by President Trump in an executive order earlier this year, are available to be viewed by clicking here.

According to the report and the DOL, 38 million Americans do not have access to workplace retirement plans. The proposal would allow small businesses to pool resources together to offer retirement plans, resulting in lower plan fees and fewer administrative costs.