Equitable Holdings Launches Retirement Access Plan to Support Small Businesses' Employee Benefits
- Equitable Holdings launched Equitable Retirement Access, a pooled employer plan to support small businesses with retirement solutions.
- The plan simplifies retirement savings, addressing small businesses' concerns about costs and administrative complexities.
- Equitable's initiative enhances employee financial well-being and helps small businesses attract and retain talent in a competitive market.
Equitable Holdings Launches Pooled Employer Plan to Empower Small Businesses
Equitable Holdings, Inc. has recently unveiled its pooled employer plan (PEP), named Equitable Retirement Access.SM This initiative is designed specifically for small and medium-sized businesses, providing them with a scalable and cost-effective solution for offering workplace retirement plans. The introduction of PEPs, stemming from the SECURE Act of 2019, allows unrelated businesses to combine their employees' retirement funds into a single plan managed by a third-party provider. This innovative approach aims to alleviate the administrative burdens and fiduciary risks that often deter small businesses from establishing retirement plans for their employees.
Despite the advantages of retirement plans, more than 40% of small businesses in the United States still do not offer such benefits, primarily due to concerns over costs and the complexities of administration. The Equitable Retirement Access plan directly addresses these issues by providing a streamlined method for enhancing plan governance and mitigating risks. With potential cost savings for employers that have over 100 participants, this plan not only simplifies the retirement savings process but also promotes a more inclusive workplace environment. Jim Kais, the Head of Group Retirement at Equitable, underscores the critical role small businesses play in the U.S. economy, noting that they generate two-thirds of new jobs. The availability of retirement savings options is crucial for these businesses to attract and retain top talent.
Equitable's survey reveals a strong consumer preference for retirement benefits, with about 80% of Americans believing that all employers should provide retirement plans. Furthermore, over 80% of respondents indicated they would decline job offers from companies that do not offer such benefits. The 401(k) PEP will be accessible through Equitable's Retirement Vision® platform, with PlanConnect LLC serving as the recordkeeper. Pension Plan Specialists will act as the pooled plan provider and administrator, while SWBC Retirement Plan Services will function as the investment fiduciary. This comprehensive management structure ensures that small businesses can confidently offer retirement savings options to their employees.
In conclusion, Equitable Retirement Access emerges as a timely and necessary solution for small and medium-sized enterprises grappling with the complexities of employee retirement plans. By leveraging this pooled employer plan, Equitable not only enhances the financial well-being of employees but also empowers small businesses to compete more effectively in the labor market. This initiative exemplifies Equitable's commitment to fostering a more secure retirement landscape for all, particularly in an environment where attracting talent is more competitive than ever.