In the wake of the DOL’s final rule on association retirement plans (ARPs), the time is ripe for local Chambers of Commerce to consider them, argues a U.S. Chamber of Commerce exec.
Speaking at a Nov. 5 session of the SPARK Forum held in Palm Beach, FL, Chantel Sheaks, Executive Director of Retirement Policy at the U.S. Chamber of Commerce, presented observations and insights that suggest ARPs are ideally suited for local Chambers of Commerce, whose members are a rich vein of potential participants in such plans.
“There are more than 1,500 state and local Chambers of Commerce,” Sheaks told attendees. And those members may be eager to consider what a service provider has to offer, Sheaks indicated. “A lot of employers don’t want the hassle,” she said, and will welcome help — and especially in light of their fiduciary responsibility.
And the opportunity is heightened by the importance of employer-based retirement plans. The U.S. Chamber's position, Sheaks said, “is that unless the employer is involved in some way, shape or form, people aren’t going to participate. They just won’t.” In addition, she said, having a retirement plan adds to employee satisfaction, whereas unhappy employees are unproductive. And, she said, employees need more than IRAs.
Local chambers may be picking up on the timing. “Chambers are considering how to add value to their members,” Sheaks said, noting that “more are looking to go down the retirement path.”
Sheaks suggested some steps that local Chambers of Commerce can take:
- Survey members regarding whether they are interested in retirement coverage.
- Ask survey members what kind of coverage they are interested in.
- Keep products simple and basic. Remember that it may be the first time a member has a plan.
- Be prepared to be hands-on in administering a plan.
“We have to let members know that we are there to help them,” Sheaks said. “The things that are basic to us,” she said, “are not basic” to businesses that belong to Chambers of Commerce. “We’ve got to help do it for them.”
