Top Finance Dem offers bill to help those repaying student loans save for retirement

Top Finance Dem offers bill to help those repaying student loans save for retirement
© Greg Nash

Sen. Ron WydenRonald (Ron) Lee WydenTrump administration to impose tariffs on French products in response to digital tax Mnuchin: Next stimulus bill must cap jobless benefits at 100 percent of previous income Congress must act now to fix a Social Security COVID-19 glitch and expand, not cut, benefits MORE (D-Ore.), the top Democrat on the Senate Finance Committee, on Monday introduced a bill aimed at making it easier for those with student loan debt to save for retirement.

Under the bill, companies would be able to make matching contributions to the retirement plans of employees who are making student loan repayments.

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Currently, companies can only provide matching contributions to their employees’ 401(k) plans if the employees themselves are contributing to the plans. That means that employees who can’t afford to contribute to their retirement accounts because they are still paying off student loans have to go without the employer contribution.

Wyden is proposing a change so that recent college graduates with student loan debt don't have to miss receiving retirement contributions from their employers.

“Millions of college grads are buried under tens of thousands of dollars in student loan debt that prevents them from building their future — buying a home, saving for retirement and starting a family,” Wyden said in a statement. “The sooner workers start to save for retirement the better, and paying down student loans shouldn’t stop them from building their nest egg. While a comprehensive response to the student loan debt crisis is needed, this policy change is an important piece of the puzzle.”

The bill is co-sponsored by Democratic Sens. Maria CantwellMaria Elaine CantwellOvernight Energy: Supreme Court reinstates fast-track pipeline permit except for Keystone XL | Judge declines to reverse Dakota Access Pipeline shutdown OVERNIGHT ENERGY: Watchdog accuses Commerce of holding up 'Sharpiegate' report | Climate change erases millennia of cooling: study | Senate nixes proposal limiting Energy Department's control on nuclear agency budget Senate nixes proposal limiting Energy Department's control on nuclear agency budget MORE (Wash.), Ben CardinBenjamin (Ben) Louis CardinCongress eyes tighter restrictions on next round of small business help Senate passes extension of application deadline for PPP small-business loans 1,700 troops will support Trump 'Salute to America' celebrations July 4: Pentagon MORE (Md.), Sheldon WhitehouseSheldon WhitehouseThe Hill's Coronavirus Report: California backtracks on reopening as cases soar nationwide; SoapBox CEO David Simnick says nimble firms can work around supply chain chokepoints to access supplies for sanitizers and hygienic materials Trump administration has been underestimating costs of carbon pollution, government watchdog finds OVERNIGHT ENERGY: EPA declines to tighten smog standards amid pressure from green groups | Democrats split on Trump plan to use development funds for nuclear projects| Russian mining giant reports another fuel spill in Arctic MORE (R.I.) and Sherrod BrownSherrod Campbell BrownSenate Dems request briefing on Russian bounty wire transfers On The Money: Mnuchin, Powell differ over how soon economy will recover | Millions fear eviction without more aid from Congress | IRS chief pledges to work on tax code's role in racial wealth disparities IRS chief pledges to work with Congress on examining tax code's role in racial wealth disparities MORE (Ohio), who all also serve on the Finance Committee.

The bill was introduced one day before the Finance Committee holds a hearing on “challenges in the retirement system.” Lawmakers on both sides of the aisle and in both chambers of Congress are interested in passing legislation this year to encourage retirement savings.

Wyden and Finance Committee Chairman Chuck GrassleyCharles (Chuck) Ernest GrassleyIllinois House Republican leader won't attend GOP convention in Florida: 'It's not going to be a safe environment' Trump administration to impose tariffs on French products in response to digital tax Big Ten moves to conference-only model for all fall sports MORE (R-Iowa) jointly introduced legislation in April that includes a host of other provisions aimed at making it easier for people to save for retirement. The House Ways and Means Committee approved a bipartisan bill last month, known as the SECURE Act, that has many similarities to Grassley and Wyden’s package.

House Majority Leader Steny HoyerSteny Hamilton HoyerPelosi 'absolutely' willing to push August recess to work on coronavirus relief The Hill's Morning Report - Presented by Argentum - California a coronavirus cautionary tale as it retrenches to stave off infections 70 progressive groups call for next Foreign Affairs chair to reflect 'progressive realism' MORE (D-Md.) said last week that he is hopeful that the SECURE Act can pass the House before Memorial Day, but noted that lawmakers were still trying to work out disagreements related to a provision that would allow 529 college savings accounts to be used for homeschooling expenses. The provision relating to 529 plans is not in Grassley and Wyden’s package.