Secretary of Labor Hilda L. Solis Print This Page Print This Page  Decrease Text Size Increase Text Size Text Size  Email This Page E-mail This Page

Archived News Release — Caution: Information may be out of date.

U.S. DEPARTMENT OF LABOR

PENSION AND WELFARE BENEFITS ADMINISTRATION

THE ADMINISTRATION PRESENTS PROPOSAL TO SIMPLIFY THE PENSION SYSTEM AND EXPAND COVERAGE

Fri., Sept. 8, 1995

For more information call: (202) 219-8921.

Blue Ball Fact Sheet on Small Businesses and Pension Coverage

The Administration today testified before Congress on its proposal to simplify pensions and expand coverage to millions of Americans, especially those working for small businesses. The need for the Administration's proposal is supported by recent data and new analysis of national and regional pension coverage developed by the Department of Labor. Recent current population survey data confirms that the majority of workers in small firms are never given the opportunity to enroll in a company-sponsored pension plan. According to Olena Berg, assistant secretary for the department's Pension and Welfare Benefits Administration, "Our new analysis indicates that up to 10 million workers in small businesses are not afforded the opportunity to earn a pension. These workers could gain coverage if their employees sponsor plans under the Administration's proposed, new simplified rules." Several pension simplification proposals have recently been introduced in Congress. Jere Glover, chief counsel for advocacy, Small Business Administration, and Mark Iwry, the Treasury Department's benefits tax counsel, testified before the House Small Business Committee hearing today. "Over 90 percent of businesses have under 100 employees, yet in 1993 only 24 percent of these employees are currently covered by a pension plan," said Glover. Iwry noted, "We now have an opportunity to simplify pensions and to expand significantly the number of workers in small businesses who are covered by retirement plans." The Administration's pension simplification proposal, which was first introduced in June, will encourage small and large employers to contribute to their employees' retirement and to provide employees simpler, tax-advantaged ways to save for retirement. The proposal would establish a new plan for employers with 100 or fewer employees, known as the National Employee Savings Trust, or "NEST."


Archived News Release — Caution: Information may be out of date.