Association Retirement Plans

A small business retirement strategy.

The U.S. Department of Labor has introduced the Association Retirement Plan, a new retirement savings opportunity for the employees of small businesses. The new rule will widen the field of retirement strategy choices for industries and regions where such plans may not have previously been affordable.

The Association Retirement Plan (ARP) is available to small businesses in the same city, county, state, multi-state metropolitan area, or simply in the same industry, who are connected through a professional organization. Think of, for instance, a chamber of commerce or a trade organization. The small business also qualifies if they are part of a Professional Employer Organization (PEO).

By allowing these larger groupings, small businesses are able to organize and offer their employees benefit packages normally associated with larger companies.

One additional benefit of the new system is a new opportunity – allowing employers additional negotiating power by uniting through their PEO, trade organization, or local chamber. Before, as much as smaller businesses wanted to offer these types of retirement strategy choices, they were likely expensive.

The Department of Labor has stated that as many as 38 million Americans have no available workplace retirement plan, such as the 401(k).

Employers who set up an ARP with their associated businesses offer their workers an opportunity to replace as much as 79% of their income once they retire, while those who don’t can only replace as little as 45%.

Retirement strategies for more employers and employees are a great opportunity. Exploring an ARP with your employer, or if you are running a small business, with your peers and employees, could be a valuable addition to that strategy.


1 – [7/29/2019]
2 – [7/29/2019]


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