Decrying a “lack of affordability” and regulatory barriers keeping many small businesses from offering retirement plans to their workers, President Donald Trump signed an executive order on Friday easing the way for the use of multiple employer plans (MEP).
“As you all know, the complexity of current federal regulations makes it extremely difficult for small businesses to afford retirement savings accounts for their great employees,” Trump said while surrounded by Chamber of Commerce and National Association of Homebuilders officials in Charlotte, North Carolina.
“While large companies can afford to deal with these burdensome regulations, and of course they’ve been reduced very substantially for large companies also, but smaller companies just can’t do it.”
As a result, nearly half of Americans working in small businesses with fewer than 100 employees have not had access to 401(k)s or similar retirement plans, the president claimed in his remarks.
“That’s why I’m taking very bold action to lower the cost of retirement plans, so that they can become an affordable option for businesses of all sizes,” he added after chiding the press for supposedly “not wanting to report” the administration’s accomplishments.
“Small businesses will no longer be at a competitive disadvantage and small business workers will now be treated more fairly and have many more choices. We will accomplish this goal by reducing regulatory barriers, allowing small businesses to band together to create low-cost association retirement plans.”
Referencing the resulting buying power and scale, Trump said “they’ll have such strength and will be able to negotiate incredible deals because they’ll have big numbers and I already know a lot of companies are getting together.
“They’re making incredible deals, Alex, and it’s because of what you’ve done in your group, and that’s just a fantastic thing,” he added, turning to Labor Secretary Alexander Acosta, who was with him on stage. “Retirement saving plans will now be available to more Americans than ever before.”
With more than 20 years serving financial markets, John Sullivan is the former editor-in-chief of Investment Advisor magazine and retirement editor of ThinkAdvisor.com. Sullivan is also the former editor of Boomer Market Advisor and Bank Advisor magazines, and has a background in the insurance and investment industries in addition to his journalism roots.
