BenefitEd has launched Employee Choice, a program allowing employees to split their employer-matched retirement funds to pay down their student loan debt.
BenefitEd said it created this program since many workers are split between saving for retirement and paying down their student loan debt. In fact, citing an Ipsos study, BenefitEd says that 69% of Millennials aren’t saving for retirement because of more pressing financial demands.
According to the Financial Industry Regulatory Authority (FINRA), because many Americans are not saving in their workplace retirement plans, they leave $24 billion in employer contributions on the table each year.
BenefitEd notes that with Employee Choice, sponsors can offer a student loan repayment benefit without changing their benefits costs. In addition, because it is a separate service from a company’s retirement plan, they do not need to amend their retirement plan summary documentation.
More information is available at youbenefited.com/products/employee-choice.