SBE Council Applauds President’s Action to Help Small Businesses Provide Retirement Plans for Their Workforce

WASHINGTON, Aug. 31 -- The Small Business and Entrepreneurship Council issued the following news release:

Today, President Donald Trump signed an Executive Order that would make it more affordable, efficient and simpler for small businesses to provide retirement plans for their employees. Small Business & Entrepreneurship Council (SBE Council) president & CEO Karen Kerrigan responded very positively to the executive order.

"Offering retirement plans can be cumbersome and small business owners need solutions that will help them provide this benefit to their employees. The executive order signed by President Trump today is an important step that aims to help small business owners help their employees with retirement planning and savings.

Being able to offer this benefit will also help small firms compete with larger businesses in attracting and retaining the employees they need to scale their businesses and take advantage of growth opportunities in the bursting economy," said Kerrigan.

The executive order directs the U.S. Departments of Labor and Treasury to examine ways to allow Multiple Employer Plans (MEPs) for 401(k) type retirement plans. Similar to actions taken by the Trump Administration to improve affordability and choice in health coverage through Association Health Plans (AHP's), the directive will help leverage the power of small business pooling to negotiate lower cost 401(k) type plans.

According to Kerrigan, Association Retirement Plans (ARPs) are a common sense strategy that takes advantage of organizations and associations that exist to help their small business members.