An ERISA Advisory Council working group yesterday agreed to recommend a tax credit of $2,500 to help small businesses defray startup costs for new pension plans.
The working group, whose recommendations will be included in a report to Labor Secretary Alexis Herman next month, agreed to define small businesses as those with fewer than 100 employees. The group also agreed to recommend changes in laws restoring earlier limits on contributions to defined contribution and defined benefit pension plans.
The group also agreed to recommend a review of rules, such as those designed to prevent employers from discriminating in benefits, that hinder small businesses from setting up pension plans. Many of the group's recommendations mirror legislation already under congressional consideration.