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Lawmakers advanced and passed the SECURE Act with an eye to narrow the gap between small business workers who have access to a retirement plan and those who don't. According to Census Bureau data, there are almost 5.5 million businesses in the country with less than 100 employees. The Bureau of Labor Statistics says a little more than half of those workers—53 percent—have access to a retirement plan. Half of the private sector workforce—55 million Americans—don't have access to a workplace retirement plan.
The law's Open Multiple Employer Plan provisions allows unaffiliated businesses—not just small ones—to pool workers under one plan, thereby creating economies of scale, and reducing individual employer's fiduciary risk.
The plans won't be available until 2021, and take-up rates will largely depend on how regulators craft rules that impact adoption.
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Nick Thornton
Nick Thornton is a financial writer covering retirement and health care issues for BenefitsPRO and ALM Media. He greatly enjoys learning from the vast minds in the legal, academic, advisory and money management communities when covering the retirement space. He's also written on international marketing trends, financial institution risk management, defense and energy issues, the restaurant industry in New York City, surfing, cigars, rum, travel, and fishing. When not writing, he's pushing into some land or water.
