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New Harkin Retirement Plan Delivers Tangible Business Benefits

Low-cost Solution to Retirement Crisis Will Help Both Employees and Employers

New Harkin Retirement Plan Delivers Tangible Business Benefits

Low-cost Solution to Retirement Crisis Will Help Both Employees and Employers

Published 01-30-14

Submitted by American Sustainable Business Council

A board member, Denise Bowyer, of the American Sustainable Business Council (ASBC) appeared today with Senator Tom Harkin at a press conference announcing a new plan to address the country’s retirement crisis. The press conference followed the announcement by President Obama of a new IRA plan in his State of the Union speech on Tuesday.

At today’s press conference, Denise Bowyer, Vice President of America Income Life, spoke about the impact on businesses by the widespread lack of retirement savings. "Senator Harkin's USA Retirement Funds Act begins to address a critical problem facing business leaders today: the prospect of an aging customer base with limited means. Since many American workers are not saving enough for their retirement, this proposal for an automatic enrollment and deposit system via payroll deduction is a smart move. Businesses thrive only when there are enough customers with enough income to afford goods and services. This plan should give every business leader more confidence in the future strength of our economy."

Bowyer also said, "Senator Harkin’s plan importantly fills in many blanks now left by the IRA or company-sponsored retirement plan options with an approach that is easy and low-cost for the many employers who want to offer a plan but feel that existing programs are too costly."

Senator Harkin said, "The USA Retirement Funds Act offers a common sense solution to the retirement crisis by giving the 75 million people without a retirement plan at the workplace the opportunity to earn a safe, portable, and secure pension benefit for life. USA Retirement Funds would be the 21st century retirement plans, run entirely by the private sector, that drastically reduce costs through professional management and risk sharing."

“The USA Retirement Funds Act is particularly good for small business owners.  It would allow them to offer more competitive benefits to their employees while at the same time relieving them of the burden of managing a pension plan themselves,” Harkin added. “It is important to note that USA Retirement Funds Act would also be good for the economy. It would significantly increase retirement savings, and all of that savings would be invested right back into the economy, fueling new growth and job creation.”

According to polling of small business owners, commissioned by ASBC and the Main Street Alliance last year, 70% of small business owners identified the lack of retirement security as a critical issue to their business interests. The same poll showed that only 30% of small businesses offer a retirement plan. The most common reason given for not offering a plan was cost, which means that most small employers want to offer a plan, but believe that they cannot afford it. The poll report may be found here: http://bit.ly/RetirementPollReportASBC_MSA.

The American Sustainable Business Council and its member organizations represent more than 200,000 businesses nationwide, and more than 325,000 entrepreneurs, executives, managers and investors. The council includes chambers of commerce, trade associations and groups representing small business, investors, microenterprise, social enterprise, green and sustainable business, local living economy and women and minority business leaders. ASBC informs and engages policy makers and the public about the need and opportunities for building a vibrant and sustainable economy. www.asbcouncil.org

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American Sustainable Business Council

American Sustainable Business Council

The American Sustainable Business Council (ASBC) is a national coalition of mission-driven businesses, social enterprises and sustainable business networks working to create a vibrant, just and sustainable economy. What unites us is a deep belief that we must move to a new economy that is grounded in principles of sustainability and equity.

The Council represents over 55,000 businesses and enterprises and more than 150,000 executives, owners, investors, entrepreneurs and business professionals. It is comprised of partners, which are organizations that represent businesses and social enterprises as well as entrepreneurs, executives, owners and investors committed to building a vibrant, just, and sustainable economy.

ASBC promotes policy change by educating and informing the business community, policy makers and the media about the business case for change, and by engaging the leaders of businesses and enterprises in building broad support for the policies America needs. We work on a range of policy areas, including: financial reform, health care, chemicals policy, climate change and business taxes.

We believe that the policies that will lead us to a sustainable and just economy are also good for business and good for America. Making the right commitments and investments will produce more and better jobs, build strength in key technologies, and make the U.S. more independent and secure.

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