Labor Dept. Announces Rulemaking on Association Retirement Plans

Filed in Labor, Safety and Health by on October 23, 2018 0 Comments

Arrow of a compass is pointing retirementThe U.S. Department of Labor (DOL) yesterday announced a Notice of Proposed Rulemaking to help small businesses strengthen retirement security for their employees. The proposed rule would make it easier for small businesses to offer retirement savings plans to their workers through Association Retirement Plans, which would allow small businesses to band together to offer 401(k) plans to their employees.

NAHB has been actively engaged in promoting retirement security with the Administration. NAHB CEO Jerry Howard was at the signing of President Trump’s executive order that paved the way for the proposed rulemaking in August.

“This need is particularly acute in the residential construction sector, where most home building firms are small businesses with less than 10 employees,” Howard said.

Under the proposed rule, Association Retirement Plans could be offered by associations of employers in a city, county, state or a multi-state metropolitan area, or in a particular industry nationwide. Sole proprietors, as well as their families, would also be permitted to join such plans.

By permitting these new plan arrangements, the proposal would enable small businesses to offer benefit packages comparable to those offered by large employers. The DOL plans to reduce administrative costs through economies of scale and to strengthen small businesses’ hand when negotiating with financial institutions and other service providers.

NAHB will continue to monitor the rulemaking process and submit comments. Contact Alexis Moch with any questions.

Facebooktwitterlinkedinmail

Tags:

Leave a Reply

Your email address will not be published. Required fields are marked *

Advertisement