President Donald Trump headed to North Carolina to sign an executive order on retirement security, first reported by The Charlotte Observer. The White House announced the appearance in late August, adding that the president would fundraise for two Republican congressional candidates, Mark Harris and Rep. Ted Budd, while visiting the Tar Heel State.
“At around 2 p.m., the president is scheduled to go to Central Piedmont Community College’s Harris Conference Center,” the paper reported. “There, the White House said he’ll deliver remarks and sign an executive order ‘strengthening retirement security in America.’”
While details were few, a spokeswoman said the order is part of administration policy “to promote programs that enhance retirement security and expand access to workplace retirement savings plans for American workers.”
Labor Secretary Alexander Acosta and Linda McMahon, administrator of the Small Business Administration, accompanied the president.
Congressional and/or administration action on retirement security and coverage had been expected for some time.
Several bills to promote multiple employer plans (MEP) were introduced in Congress, with a flurry of activity occurring in July to make it easier for small employers to establish 401ks through MEP use.
While much wasn’t expected in the way of official passage in the run-up to the midterm election, many saw 2019 as a year of potentially major changes for retirement plans in general, and MEPs in particular. News of the president’s executive order, therefore, came as something of a surprise, and could shorten reported timelines.
The decline in defined benefit, pension plan coverage and the rise of defined contribution plans have left many workers without the means to save for retirement. The Bureau of Labor Statistics finds that over 40 percent of the American workforce do not have access to a 401k or similarly tax-qualified plan, something driving many state-sponsored retirement proposals.
Federal action enjoys widespread, bipartisan support, and addressing the issue could result in a victory for the president heading into November, one possible reason for the executive order announcement.
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.
