Employee stress has increased, especially among younger generations dealing with student debt, and so employers should provide financial wellness programs that continuously engage and motivate their workers, according to a recent PwC survey.
Named Fidelity Works, the package will also be available to third parties working with these employers, including advisers, employee benefits brokers, banks and certified public accountants (CPAs).
Employees must contribute 2% of their salaries to the retirement plan, which then allows them to direct up to 4% of their employer match to pay down their student debt.
The firms say strong demand among employers and employees for student loan repayment support solutions made their new partnership “an easy decision.”
The bill would expand the Employer Education Assistance Program, which only provides assistance for workers who are seeking additional education, but does not benefit individuals who already have incurred student loan debt.
The 2018 PLANSPONSOR Defined Contribution Survey finds that 403(b) plan sponsors offer more formal financial education/guidance on a variety of topics than the overall 4,000 defined contribution (DC) plan sponsors surveyed.
A partnership with Gradifi allows employers to offer several student loan repayment benefits.
The ERISA Industry Committee is asking the IRS to broaden the Private Letter Ruling guidance via a revenue ruling or other guidance.
Overwhelmingly, employees surveyed by IonTuition agree with the statement, “I would like my company to offer a voluntary student loan assistance benefit.”
IRS Private Letter Rulings are directed only to the taxpayer requesting it; however, they can give retirement plan practitioners an idea of what the IRS thinks about plan sponsor decisions or programs.