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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