The National Federation of Independent Business (NFIB) expressed disappointment that the Michigan Senate passed SB 807 and SB 808, which would create a retirement savings program and place a new mandate on small businesses.

MI Secure Retirement Program

The MI Secure Retirement program would automatically enroll employees who do not have access to an employer-run retirement plan. This legislation requires employers with one or more employees to offer an opt-out for their employees, withhold contributions, and remit those contributions to the state.

When NFIB members were asked if they supported such a program, 87% of those responded with a resounding no. Amanda Fisher, NFIB Michigan State Director, stated that the state is forcing unfunded mandates on small employers who simply cannot afford the cost of one more regulation.

According to a recent 2023 study, small business owners who employ fewer than 50 employees pay an average of $14,700 per employee to comply with federal regulations. Every state regulation adds to that cost, which can be a deterrent to both starting and growing a small business.

Fisher continued, “Saving for retirement should be a matter of personal responsibility, not another regulation put on the backs of small business.”

Original reporting: NFIB (National Federation of Independent Business) — read the source article.