WASHINGTON – In a recent op-ed for The Well News, President and CEO of the Employee-Owned S Corporations of America (ESCA) Stephanie Silverman noted that skyrocketing inflation means many Americans are “tapping into savings to make ends meet” and that Congress could do more to boost retirement security.
“While there is no single policy solution, the strain on American savings makes clear that Congress should not adjourn for the year without passing bipartisan legislation to help Americans save for a more secure retirement,” said Silverman.
In a welcome development, Congress added language to a must-pass year-end bill that includes important benefits for employee-owners. These provisions include expanding important tax benefits for the first time ever to S corporation owners and directing the Department of Labor to address regulatory clarity challenges that have plagued ESOPs. Congress is expected to pass the package before the current continuing resolution funding the government expires on December 23.
Silverman highlighted a recent study by Ernst & Young that found how the S corporation ESOP “has proved to be one of the best tools for increasing economic stability later in life.” Silverman also pointed out that “employees at private ESOP-owned companies have more than twice the average total retirement savings than Americans who work at non-ESOP companies.”
Employee-owners are also “better equipped financially to handle big expenses like car payments, mortgages, college costs for their children and retirement costs,” something that is especially important during times of economic volatility.
“Giving businesses and workers more tools to increase savings for retirement, ensure job security and grow America’s economy is an urgent, commonsense step Washington can’t afford not to take,” concluded Silverman.