Guide to Retirement Plan Responsibilities for Small Businesses Made Available
WASHINGTON, DC, December 16, 2003 -- The U.S. Small Business Administration and Nationwide announced today a joint education initiative on small business retirement plan responsibilities. The initiative includes a guide available through regional SBA offices and at http://www.sba.gov, as well as a media campaign.
"Most small business owners want to help their employees by offering retirement benefits," said SBA Administrator Hector V. Barreto. "But there are a number of complex legal responsibilities that come with offering these benefits, and what entrepreneurs don't know or understand about those responsibilities can come back to hurt them. Today, the SBA and Nationwide are teaming up to help those entrepreneurs and their employees by offering a helping hand in understanding the complex world of retirement plans. This simple booklet will guide business owners through the opportunities and responsibilities of retirement planning so they can do more to help themselves and their employees prepare for the future."
A recent Nationwide survey found that many small business owners may be mistakenly confident about their retirement plan management, as many report critical lapses in at least one aspect of fiduciary knowledge (legal duties and obligations relating to qualified retirement plans). Half of all small business owners surveyed say fiduciary and legal responsibilities are a top concern, yet only one in five have taken steps in the past year to increase fiduciary oversight.
"Many business owners are unaware of the legal responsibilities of offering a retirement plan, and are at risk both personally and professionally," said W.G. Jurgensen, Nationwide CEO. "We are committed to educating small business owners to make informed choices for their employees in offering retirement plans."
The guide features answers to questions, such as:
- What is a retirement plan?
- Why offer a retirement plan?
- If I offer a retirement plan, why is it important for me to pay attention to retirement plan management?
- Who or what is a fiduciary?
- Why should I care about fiduciary responsibilities?
- How do I find help?
An estimated 37 percent of small businesses offer retirement plans in the United States.
About the SBA
The U.S. Small Business Administration, established in 1953, provides financial, technical and management assistance to help Americans start, run and grow their businesses. With a portfolio of direct and guaranteed business loans and disaster loans worth more than $45 billion, the SBA is the nation's largest single financial backer of small businesses. Last year, SBA offered management and technical assistance to more than 1.5 million small business owners. SBA also plays a major role in the government's disaster relief efforts by making low-interest recovery loans to both homeowners and businesses.
America's 23 million small businesses employ more than 50 percent of the private work force, generate more than half of the nation's gross domestic product, and are the principal source of new jobs in the U.S. economy.
About Nationwide
Nationwide, is a leading provider of diversified insurance and financial services and is ranked No. 111 on the Fortune 500 based on revenue. Subsidiary, Nationwide Financial Services, Inc. (NYSE: NFS), based in Columbus, is a leading provider of annuities, life insurance, retirement plans, and other financial services for individuals and institutional clients.
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