Employees at some of the nation’s largest companies are eligible for the new Employee Benefit Plan (EBPP) that replaces the Employee Retirement Income Security (ERIS) plan, which has been in place since 2013.
In an announcement on Thursday, the Department of Labor said the EBPP, which was implemented last year, will give workers a $3,000 “employee retirement benefit” that will replace the ERIS plan.
“EBPP provides greater choice for all employees, reduces employee administrative burdens, improves the employee’s quality of life, and increases the employee base and retention of workers,” said Labor Secretary Andrew Puzder.
The EBPP will be available for all U.S. workers beginning on Jan. 1.
Employees will also be able to receive up to $25,000 per year in payroll deductions, which will help offset the cost of the new plan.
The EBPP was launched in 2013 to provide employees with an employer-sponsored retirement savings plan that would help them save for retirement and boost their chances of securing a decent-paying job.
The plan was designed to offer the same level of retirement security as the ERISA plan, but without the employer contribution requirements.
It was designed with employees in mind.
“The EBSP is a great plan, it is going to save people a lot of money, it saves people from a lot, but it also allows them to get into a lot more good-paying jobs,” said David Sacks, senior director of economic policy and research at the Center for American Progress, a liberal think tank.
The EBP will also allow employers to make more generous contributions to employees’ 401(k) plans.
But while it offers employees a lot less, the new EBPP offers more flexibility, which is something that would be welcome to many employers.
For example, if you don’t have any cash to offer in your 401(ks), you can make the EBSP contribution in the 401(q), instead of the 401K contribution.
The amount you contribute will vary based on your age, your earnings and your salary.
The EBFP says that this will “help workers save for their retirement, increase their wages and improve their quality of work.”
For example:If you are between the ages of 18 and 54, you can contribute $3.25 per month to your 401K, which equals $1,000 a year.
If you are over the age of 55, you’ll need to contribute $4,000.
The difference between the two amounts will be deducted from your 401k contribution.
Employees who are eligible to make this contribution can also deduct up to 10% of their salary in their 401k contributions.
If you want to qualify for the plan, you will have to pay the full $3 $3 in taxes and $5.10 in payroll taxes, but you won’t have to provide any information about your assets.
“This is an exciting time for our workers and it is an important step towards getting them back to work,” said Gary Hart, president and CEO of the National Federation of Independent Business, which represents small businesses.
“This new plan will help employees to be self-sufficient, which would help businesses create more jobs, more wealth for our country, and for the American people.”
If you’re new to the EBMP, you are eligible until you hit age 59.
For more information, check out The Washington Post.