A new report by the General Accounting Office found that better coordination between the Department of Labor, IRS and Small Business Administration could help small employers better address the challenges of sponsoring a retirement plan.
Many small employers said they do not offer a retirement plan because there are too many plan options, administration requirements, and fiduciary responsibilities. Many are concerned about the potential risks associated with sponsoring a plan. Although federal agencies conduct education and outreach on retirement plans, a number of small employers and other stakeholders said small employers were unaware of these initiatives.
Other challenges cited were a lack of financial resources, time and personnel. Other small employers said their employees chose health care benefits over having a retirement plan.