Senators Collins, Hassan Welcome Department of Labor Rule to Support Retirement Security, Call for Additional Action

Washington, D.C. — Last week, the Department of Labor announced a rule to expand the ability of small businesses to offer retirement savings plans to their employees. U.S. Senators Susan Collins (R-ME) and Maggie Hassan (D-NH)—who introduced legislation earlier this year that further helps Americans save for retirement—issued the following statement in response:

“We know that far too many Americans reach retirement age without the savings they need to pay the bills, afford their medications, and have a good quality of life. That’s why we joined together to introduce the Retirement Security Act of 2019, which would take a number of steps to enable Americans to better save for retirement – in particular by expanding the retirement savings options to small business employees.

“The Department of Labor’s new rule will allow more small businesses to offer retirement plans to their employees, but we need additional action for the small businesses that are still left out. To further expand small business employees’ access to retirement savings plans that work for them, we hope the President and our colleagues on both sides of the aisle will join us in moving forward the Retirement Security Act of 2019. Older Americans deserve to live with dignity and have a secure retirement, and we are committed to continuing to work together in service of that goal.”

Currently, small business employers can join multiple employer plans (MEPs) to offer retirement programs to their employees, but there are a number of hurdles and restrictions for businesses to participate. The rule issued by the Department of Labor expands the ability for small businesses to join MEPs. Senators Collins and Hassan’s bipartisan Retirement Security Act of 2019 takes additional steps to make it easier for small businesses to join MEPs, and also further incentivizes small businesses to create strong retirement accounts for their employees.