Will This Bill Encourage Multiple Employer Plans (MEP)?
- January 22, 2016
- Posted by: amECarh
- Category: Finance & accounting, Uncategorized
A flurry of legislation in the waning days of the year aimed at helping American workers save has complemented state efforts to introduce government-run retirement plans.
The latest, literally called the SAVE Act (Small Businesses Add Value for Employees) of 2017, was introduced last week by Reps. Ron Kind, D-Wisconsin, and Dave Reichert, R-Washington.
The politicos hope it will encourage more small businesses to offer 401k plans to their employees.
“A comfortable retirement is something everyone seeks to achieve—whether they work for a big business or a small business,” Rep. Kind said in a statement. “Unfortunately, many small businesses don’t offer retirement savings plans to employees because it can be complicated and costly. By taking steps to make it easier for Wisconsin small businesses to offer their employees a plan we level the playing field and set workers and businesses up for future success.”
In a nod towards the need for multiple employer plans (MEP), the bill removes the “common bond” requirement, enabling small businesses to pool together, regardless of industry, to offer retirement plans to their employees.