Heads up: The Obama administration is floating a plan to require most businesses to set up an employee pension plan.
Its 2012 federal budget proposal (not yet passed by Congress) proposes new requirements for employer-sponsored programs.
Firms with at least 10 employees in business for at least 10 years would have two options:
- sponsor a 401(k) or similar plan, or
- provide an automatic pension plan.
For firms that choose the 401(k) route, employees must be automatically enrolled, unless they opt out.
The only good news for employers: They won’t be required to contribute or match employee contributions.
Sound like a good idea? Sound off below.