On Friday, August 31, President Trump signed an Executive Order that aims to help small businesses offer retirement savings plans to their employees. “We believe this is a huge win for investors,” said Peggy Ho, executive vice president, Government Relations, adding “There is a large percentage of investors who want to save for retirement, but don’t have access to affordable options. This order will help address this savings gap.”
LPL was invited to attend the event due to its continued advocacy efforts in the retirement savings space. LPL has consistently come out in favor of legislation that will help small businesses provide options for the under-served investor. For example, LPL continues to be a big supporter of the Retirement Enhancement Savings Act (RESA), which has some similar provisions to what was included in the President’s Executive Order. LPL believes these are important pieces that will help improve Americans’ efforts to save for retirement.
Earlier this year, LPL released the Small Business Retirement Savings Challenge that looked into this issue. The study, involving more than 700 business owners, concluded that small employers want to help their employees save for retirement, but it’s cost-prohibitive. Changing the laws to help small businesses should level the playing field for everyone.
U.S. Secretary of Labor Alex Acosta released the following statement after the President’s Executive Order, "President Trump's Executive Order will help provide greater opportunities for workers to save for the future and retirement. Allowing small and mid-size businesses to come together to sponsor retirement plans for their employees can provide pathways for the financial security of families across our nation. The Department embraces the President's goal of making retirement security simpler and more convenient for millions of Americans."
Another part of the Executive Order focused on changes to required distributions from 401(k) plans to align with investors living longer and wanting to save longer, which is another initiative that LPL supports.
A review of all of these regulations could take months to complete. LPL’s Government Relations team will continue extensive engagement with Congress and the current administration to promote policies that will enhance retirement security for all Americans.
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LPL Government Relations team https://lplgovernmentrelations.com/SitePages/HomePage.aspx