The Trump administration has announced on Thursday evening that the White House is looking to announce a new policy designed at expanding access to retirement plans for small businesses following the Labor Day holiday weekend. The special assistant to the U.S President for domestic policy, James Sherk has indicated problems for small businesses in providing their employees with retirement security. Sherk added that Trump will sign an executive order in Charlotte, North Carolina on Friday. It will drive in making offering work-based retirement plans more affordable for a large number of small businesses. The executive order is going to direct the U.S Departments of Labor and Treasury to issue regulations in making it easier for small businesses to join together to form an association or retirement plans or AARP. It is also known as multiple employer plans.
Sherk added that this move will enable one business to join in tandem with other small businesses to split those costs and enjoy the economies of scale that larger firms enjoy. The assistant secretary of Labor for the Employee Benefits Security Administration, Preston Rutledge said that the U.S President will also direct the U.S Department of Labor to work within its current regulatory authority in finding ways to expand access to retirement plans for small business employers. Rutledge said during a press conference on Thursday evening that we know the most workers and larger employers have access to retirement savings plans like a 401k plan and we know that many if not most workers at small businesses do not. So, we will explore ways to tackle those challenges and it will also decrease the cost. It will also find ways to lower the administrative burden.