Could Obama’s New Retirement Proposal Help Your Nest Egg?

Better Investing

What's Hot

Funny Money: Financial Wit and Wisdom From 50 Top ComediansCredit & Debt

Shoppers Boycott Businesses Selling Trump-Branded ProductsBusiness

50 Best Gifts Under $25 for Everyone on Your ListFamily

What the Richest 1 Percent Earns in Every StateFamily

6 Stores That Allow Coupon StackingSave

Why Washing Your Turkey Can Make You IllFamily

10 Ways to Retire Earlier Than Friends on the Same SalaryGrow

7 Foods That Can Lengthen Your LifeFamily

7 Government Freebies You Can Get TodayFamily

10 Ways to Pull Together the Down Payment for a HomeCredit & Debt

If you work for a smaller employer, the president's new proposal might boost your ability to save for retirement. Find out more.

President Barack Obama’s final annual budget request, which he unveiled earlier this week, includes a proposal to expand access to retirement benefits.

The budget would accomplish that goal by creating open multiple-employer plans. Open MEPs would allow multiple employers to offer retirement benefits through the same administrative structure, lowering employer costs.

CBS MoneyWatch reports that expanding MEPs would help more smaller employers offer retirement benefits:

The trouble is, many small businesses don’t have the resources to design and implement retirement plans on their own, and they don’t have the group buying power to shop for low-cost plans.

Currently, MEPs are available to employers who share a common bond, such as those whose employees are members of the same union.

A subsection of the president’s budget titled “Helping All Workers Save for Retirement” explains that the budget proposes to remove the current requirement of a “common bond” between employers, “thereby enabling more small businesses to offer cost-effective, pooled plans to their workers and potentially facilitating pooled plans of self-employed individuals.”

Open MEPs would also help employees who change jobs, according to Obama’s proposal. Employees who move between employers participating in the same open MEP would be able to continue contributing to the same retirement plan.

CBS MoneyWatch reports that retirement industry experts and the financial services industry applaud open MEPs.

Kevin Crain, head of Workplace Financial Solutions at Bank of America Merrill Lynch, tells CBS:

“Open MEPs will encourage private sector financial institutions to work hand in hand with small employers to help expand retirement savings coverage.”

If your nest egg could use some help in the meantime, check out the Money Talks News Solutions Center, where you can find guidance on savings accounts, brokerages and other financial issues that impact retirement.

What’s your take on open MEPs? Would they help you? Share your thoughts below or on our Facebook page.

Stacy Johnson

It's not the usual blah, blah, blah

I know... every site you visit wants you to subscribe to their newsletter. But our news and advice is actually worth reading! For 25 years, I've been making people richer without making their eyes glaze over. You'll be glad you did. I guarantee it!


Read Next: 7 Simple, Free Moves Guaranteed to Make You Richer

Check Out Our Hottest Deals!

We're always adding new deals and coupons that'll save you big bucks. See the deals to the right and hundreds more in our Deals section.

Click here to explore 1,893 more deals!