EMPLOYEES at small businesses are
more inclined to be dissatisfied with their
benefits than workers at companies of all
sizes, Lincoln Financial found in a survey
of small businesses and benefits.
Thirty-five percent of small-business
employees are dissatisfied with their
benefits, outside of medical insurance,
compared with 20% of workers at companies of all sizes.
Eighty-one percent of small-business
employees expect to be offered a retirement savings plan, but the reality is that
only 58% of small companies have one.
This disconnect is most striking for
Millennials and members of Generation
X, who believe their employer-sponsored
retirement plan will be their biggest
source of income in retirement. Given
the uncertainty of the future of Social
Security and ever-increasing longevity,
the need for a retirement plan becomes
even more critical.
“When potential employees are
looking at companies, they clearly want
a quality retirement plan,” says Tim
Seifert, vice president and national
sales manager for small-market retirement plan services at Lincoln Financial
Distributors. “Offering a comprehensive
plan doesn’t have to be complicated.
“With just a few conversations and
some simple decisions, a small business
owner can set up a new plan or enhance
the one [the company is] already offering,”
he says. —Lee Barney
INTRODUCING THE 27TH
U.S. SECRETARY OF LABOR
IT REMAINS to be seen exactly what
impact R. Alexander Acosta’s confirmation as secretary of labor, last month, will
have on the fiduciary rule nuances—and
whether and to what extent he will work
to implement Trump campaign promises
that criticized the role of regulation in the
financial services industry.
The new secretary’s background
includes experience as a government
employee. He served on the National
Labor Relations Board, led the civil rights
division of the Justice Department and
served as a U.S. attorney for the Southern
District of Florida during the George
W. Bush administration. As a law clerk,
Acosta worked for current Supreme Court
Justice Samuel Alito when Alito was a
federal appellate judge.
Acosta, the son of Cuban immigrants, is the Trump cabinet’s first
Hispanic appointee. —PS
Who do you think stands to benefit most from the fiduciary rule?
Banks and other large financial institutions
Source: A Financial Engines Survey on the Conflict of Interest Rule; 2017
IN WHOSE BEST INTEREST?
What have you heard about the Department of Labor’s
‘fiduciary rule’ regulation?
Heard of the fiduciary rule
Heard good things
Heard all good things
Heard mostly good things
Heard some good things, some bad things
Heard mostly bad things
I have not heard of the fiduciary rule