Nationwide Financial Services supports SAVE Act legislation to make it easier for small business to offer retirement plans
”Multiple Small Employer Plans” provision would expand retirement savings access to more Americans
FOR IMMEDIATE RELEASE
April 14, 2011
Contact:
Jeff Whetzel (614) 249-6354
whetzej@nationwide.com
Charley Gillespie (614) 249-5701
gillesc1@nationwide.com
Columbus, OH —Nationwide Financial supports the Small Businesses Add Value for Employees (SAVE) Act introduced today before Congress that would make it easier for small businesses to establish and maintain a retirement plan for their employees. This legislation, sponsored by Reps. Ron Kind (D-WI) and David Reichert (R-WA), allows small employers to reduce costs by pooling their resources under a single plan with easier administrative requirements.
“The SAVE Act is an important step toward improving the lives of
American workers who don’t have access to an employer-based retirement
plan,” said Kirt Walker, president and Chief Operating Officer of
Nationwide Financial. “The provisions in the SAVE Act will remove many of
the barriers that have kept small businesses from offering their
employees a retirement plan.”
Walker said the SAVE Act legislation will aid small businesses and their
employees by:
Improving Access – Half of the U.S. workforce does not have access to an employer-sponsored 401(k) plan1 partly because small businesses need to reach a point of business maturity or critical mass to absorb the cost and administration of the current 401(k) retirement plan. The SAVE Act encourages small businesses that are not offering plans to pool together to offer Multiple Small Employer Plans (MSEP). These plans are less expensive than single employer plans and simplify an employer’s administrative requirements.
Fiduciary Protection – By encouraging plan sponsors to work
within the current defined contribution system, this legislation extends
to millions of Americans important fiduciary protections that do not
exist with other retirement accounts. It also enables small businesses to
easily transition to a traditional 401(k)
retirement plan as the business matures.
“There’s a retirement crisis looming and we need to work together to improve access to retirement plans for everyone,” said Anne Arvia, senior vice president of retirement plans for Nationwide Financial. “Nationwide strongly supports initiatives like the SAVE Act that will help increase retirement security for all Americans.”
About Nationwide
Nationwide, based in Columbus, Ohio, is one of the largest and strongest
diversified insurance and financial services organizations in the U.S.
and is rated A+ by A.M. Best. The company provides a full range of
personalized insurance and financial services, including auto insurance,
motorcycle, boat, homeowners, life insurance, farm, commercial insurance, administrative
services, annuities, mortgages, mutual funds, pensions, long-term savings
plans and health and productivity services. For more information, visit
www.nationwide.com.
The Nationwide® Group Retirement Series includes unregistered group fixed and variable annuities and trust programs. The unregistered group fixed and variable annuities are issued by Nationwide Life Insurance Company. Trust programs and trust services are offered by Nationwide Trust Company, FSB a division of Nationwide Bank®. Nationwide Investment Services Corporation, member FINRA. In MI only: Nationwide Investment Svcs. Corporation. Nationwide Mutual Insurance Company and Affiliated Companies, Home Office: Columbus, OH 43215-2220.
Nationwide, Nationwide Financial, the Nationwide Framemark and On Your Side are registered service marks of Nationwide Mutual Insurance Company.
1 According to the Employee Benefit Research Institute
