|
Small biz retirement plans
|
 |
June 2, 1998: 1:04 p.m. ET
Many small firms don't offer them, a fact the Labor Dept. is trying to change
|
NEW YORK (CNNfn) - Many employees at small businesses don't have company-offered retirement plans. And a lot of them don't think it's a big deal.
According to the 1998 Small Employer Retirement Survey of 600 employers, about half of those who don't have plans said their employees would rather have paid vacations, health and disability insurance instead.
The survey, sponsored jointly by the Employee Benefit Research Institute, the American Savings Education Council and Matthew Greenwald & Associates, was conducted for the first time this year.
Less than a quarter of workers at businesses employing fewer than 100 workers participate in a retirement plan, EBRI said. And almost 36 percent of the private-sector workforce is employed at small businesses -- which means about 25 million Americans are not covered by a company retirement plan.
"The SERS results demonstrate that … we must not only address their concerns about the dollars involved, but we must also educate their workers about the importance of retirement planning and savings," EBRI president Dallas Salisbury said. "Otherwise, a lot of hard-working Americans could face a bleak retirement."
The gap in coverage among small employers has been an area of policy focus for a few years. Most recently, the Small Business Protection Act of 1996 put into place the Savings Incentive Match Plan for Employees (SIMPLE).
And the U.S. government is continuing its effort to help small businesses offer retirement plans.
The Department of Labor launched a website today to help small-business owners learn more about starting an affordable retirement plan and show employees what choices are available.
The site offers information on various plans, along with federal forms required to set them up. Information is also available by calling (800) 998-7542.
"We need to simplify the process for small employers," said Don Blandin, president of the American Savings Education Council. "We also need to build demand among employees by persuading them to consider retirement planning a priority."
|
|
|
|
|
 |
|
