Michigan Lawmakers Propose Help for Small Business 401(k) Plans

The proposal calls for a state-hired private investment planner to create a 401(k)-like retirement plan and make it available to all businesses, even those with only one employee, according to the Detroit Free Press. The legislators backing the plan said having the state administer the plans through a private investment planner would be more affordable for small businesses.

The plans would allow employers to match employee contributions and allow employees to take the retirement savings with them when they switch jobs, the news report said.

Creating the retirement system would cost the state $559,000 which legislators said the state would recoup in five years.