DOL must avoid obstacles to saving

Two basic questions with big consequences for workers and employers: “Do I have the right investment mix for my retirement goals? Which investment options should I include in the retirement plan I’d like to offer my employees?”

But how many of Rhode Island’s small businesses are qualified to answer them? Many small businesses currently offer access to a workplace savings plan, which provides their employees with helpful support and guidance from retirement investment providers.

Unfortunately in Washington, the U.S. Department of Labor has proposed a regulatory change that could threaten small businesses’ access to plans and guidance. We are concerned that this proposal would yield greater complexity, costs and liability for retirement providers and potentially force them to stop servicing such plans.

Without provider support, most small-business owners would be forced to either “go it alone” when setting up plans, or hire expensive third-party advisers.

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Over 90 House Democrats, 12 Democratic senators, the Black Chamber of Commerce, and many others have asked the labor department to make practical changes to the current proposal. Even the Small Business Administration’s Office of Advocacy is encouraging the labor department to consider ways to decrease the potential burdens of the new rule. In Rhode Island, groups as diverse as the Society of CPAs, the Associated Builders and Contractors, the Smaller Business Association of New England, chambers of commerce and Fidelity Investments have expressed the need for changes to make the rule workable.

Rhode Island’s federal delegation has been engaging on this issue and we urge them to hold the Obama administration and the labor department responsible for revising the proposed rule.

The last thing we need is more obstacles to retirement savings for workers at small businesses. •

John Muggeridge is vice president of public affairs for Fidelity Investments. Bill Vernon is Rhode Island state director for the National Federation of Independent Business. Laurie White is president of the Greater Providence Chamber of Commerce.

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