Next year, more part-time workers will be eligible for employer retirement plans.

• In 2024, employers will be mandated to provide long-term part-time employees with the opportunity to contribute to their company's 401(k) or 403(b) plan.
• According to the U.S. Bureau of Labor Statistics, 66% of private-sector workers in the U.S. have access to an employer defined contribution plan.
• The labor market's strength and alterations in federal and state legislation are prompting businesses to reassess their retirement strategies.

Mark Zimmermann, a 72-year-old dairy farmer in Wisconsin, didn't prioritize saving for retirement, thinking he'd always continue running the family farm. However, that plan didn't come to fruition.

Zimmermann, speaking from his office, told CNBC that he struggled with farming as he faced numerous disasters and was unable to save any money.

Zimmermann works part-time on the factory floor, maintaining equipment and setting up the sizing for customized metal parts.

Mitchell Metal Products, his employer, has under 100 employees and allows part-time staff to join the 401(k) plan.

Zimmermann expressed gratitude for being included in the plan, stating, "Although I don't currently have a substantial savings buffer, I understand the need to save more given inflation's impact."

To attract and retain workers, the Merrill, Wisconsin-based manufacturer provides part-time employees with access to the company's 401(k) retirement plan.

According to Tim Zimmerman, president of Mitchell Metal Products, all employees, whether they work full or part time, are considered valuable assets to the company, with 84% of them participating in the company retirement plan.

More part-time workers to get 401(k) access in 2024

Recent legislation aims to simplify the process for companies to offer defined contribution plans to private-sector workers in the U.S., as only 66% of these workers currently have access to such plans, according to the U.S. Bureau of Labor Statistics.

The SECURE Act of 2019 and SECURE 2.0 brought about sweeping changes to retirement plan laws, including incentives and provisions to increase part-time workers' access to retirement accounts.

Under the original Secure Act, employers were required to grant eligibility to part-time employees who worked at least 500 hours per year for three consecutive years. However, starting in 2025, Secure 2.0 reduces the work requirement to two years. Prior to this, companies were already required to grant eligibility to employees who worked at least 1,000 hours in a year.

The ongoing changes in laws, state mandates, and the robust job market are prompting small businesses to reconsider their retirement plans.

Eric O'Donnell, director of product strategy and marketing strategy for Sentry Insurance, stated that the true worth lies in the discussions held with plan sponsors regarding retirement plan services for small and micro businesses.

Enabling part-time workers to receive retirement benefits prompts discussions about saving and investing among newly-eligible staff.

He stated that such conversations help individuals comprehend that retirement plan investing is applicable to them and something they should consider, contrary to popular belief that it is only for the wealthy.