ARA Endorses the Minnesota Secure Choice Retirement Program Act
Workplace plans are how people save for their retirement
Workplace retirement saving plans are successful for those that have access to them. These plans provide long term economic growth and build financial security for the middle class. The critical factor that determines whether moderate-income workers save for their retirement is whether they have access to a retirement savings plan at work. Moderate-income workers are 12 times more likely to save for retirement if they have access to a retirement savings plan at work.
Small businesses support payroll deduction savings programs
Only 51 percent of employers with 50 or fewer employees offer a workplace retirement plan. However, nearly all small businesses that do not have a retirement plan want to offer one for their employees. Pew Charitable Trusts found that 86% of small and mid-sized employers without plans – employers with between 5 and 250 employees – support the concept of a payroll deduction retirement plan with automatic enrollment.
SECURE 2.0 small employer retirement plan start-up incentives
The recently enacted SECURE 2.0 Act significantly increased the incentives for small businesses to adopt a new retirement plan. Now businesses with 50 or fewer employees can get a credit for 100% of retirement plan administrative expenses for the first three years of a plan, capped at $5,000. There are also new tax credits for employer contributions to these retirement plans for the first four years.