There’s a misconception out there that ERISA compliance is really more important for larger businesses. But the fact of the matter is that ERISA has significant implications for organizations of all sizes. So, Tom Clark of FRA/Plan Tools notes, it’s vital for small business owners and plan administrators to understand five reasons why they need to pay attention to it too:
• It’s their money too.
• They’re personally liable.
• The DOL doesn’t care if they have 10 employees or 10,000.
• It’s easy to comply if you get the right help.
• Better outcomes for them and their employees.
In most cases, compliance with ERISA by a small business plan will result in better retirement outcomes for employees. If employees recognize this, it may lead to increased loyalty and productivity as a result of feeling that their employer is looking out for them.