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 WydenManning: Additional Assange charges are feds 'using the law as a sword' Overnight Health Care — Presented by PCMA — Senators unveil sweeping bipartisan health care package | House lawmakers float Medicare pricing reforms | Dems offer bill to guarantee abortion access Democratic senator warns of threat to press freedom in new Assange charges 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 CantwellDon't revive logging in national forests Top Finance Dem offers bill to help those repaying student loans save for retirement Facebook COO Sheryl Sandberg meets with senators on privacy MORE (Wash.), Ben CardinBenjamin (Ben) Louis CardinHouse votes to boost retirement savings On The Money: GOP angst grows over Trump's trade war | Trump promises help for 'Patriot Farmers' | Markets rebound | CBO founding director Alice Rivlin dies | Senate to vote on disaster aid bill next week Senators offer bipartisan retirement savings bill MORE (Md.), Sheldon WhitehouseSheldon WhitehouseOvernight Energy: Democrats ask if EPA chief misled on vehicle emissions | Dem senators want NBC debate focused on climate change | 2020 hopeful John Delaney unveils T climate plan Democratic senators want NBC primary debate to focus on climate change Overnight Energy: EPA watchdog finds Pruitt spent 4K on 'excessive' travel | Agency defends Pruitt expenses | Lawmakers push EPA to recover money | Inslee proposes spending T for green jobs MORE (R.I.) and Sherrod BrownSherrod Campbell BrownOn The Money: Judge upholds House subpoena for Trump financial records | Trump vows to appeal ruling by 'Obama-appointed judge' | Canada, Mexico lift retaliatory tariffs on US | IRS audit rate falls Lawmakers grapple with the future of America's workforce The Hill's Morning Report - Presented by Pass USMCA Coalition - Restrictive state abortion laws ignite fiery 2020 debate 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 GrassleyTrump-Pelosi fight threatens drug pricing talks Overnight Health Care — Presented by PCMA — Senators unveil sweeping bipartisan health care package | House lawmakers float Medicare pricing reforms | Dems offer bill to guarantee abortion access Bipartisan senators reveal sweeping health care package 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 HoyerSteyer plans impeachment push targeting Democrats over recess The Hill's Morning Report - Pelosi remains firm despite new impeachment push Pelosi faces tipping point on Trump impeachment 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.