SBAM makes offering quality retirement plans more affordable for small businesses
September 20, 2022
LANSING – Small business owners can access a quality, affordable retirement plan for their employees, thanks to a program by the Small Business Association of Michigan.
SBAM’s Pooled Employer Retirement Plan is designed to help small businesses take on the responsibilities for 401(k) plans without significant costs. The plan was created after the federal SECURE Act of 2019 made it possible for employers to band together to create a Pooled Employer Plan (PEP) instead of sponsoring a traditional, standalone 401(k) plan.
“The SBAM Pooled Employer Plan will help small businesses save money while outsourcing the liability of retirement plans, making it easier to offer high-quality retirement plans to employees,” said Scott Lyon, SBAM Senior Vice President. “SBAM is excited to have this innovative plan available to our members, which is already helping them realize savings on employee retirement, which will hopefully help attract and retain staff.”
The SBAM Pooled Employer Retirement Plan is powered by TAG Resources, Transamerica and Graystone Consulting Services – Farmington Hills, a business of Morgan Stanley, which handles all fiduciary aspects of the plan. Transamerica has been helping people prepare for retirement for more than 85 years and is a pioneer in pooled-plan solutions. Graystone Consulting has over 35 years of experience offering advanced resources and fiduciary services for retirement plans. TAG Resources is the Plan Administrator and will lead the day-to-day operations for SBAM plans.
Small businesses are encouraged to learn more about how this plan could benefit their organization whether they currently sponsor a plan now or have never offered a retirement plan to employees. The SECURE Act has made tax credits available to businesses who have never offered a retirement plan. Those who currently offer a SIMPLE IRA plan may want to take action before November 2nd, the annual deadline to convert simple IRAs into a 401(k). Small businesses interested in receiving a proposal can visit sbam.org/retirement.