The economic and health impacts of the COVID-19 crisis are also posing a threat to retirement security.
Washington, D.C. – U.S. Senators Susan Collins (R-ME) and Maggie Hassan (D-NH) introduced the Military Spouses Retirement Security Act (S. 4173), a bipartisan bill that would help spouses of active duty service members save for retirement by expanding access to employer-sponsored retirement plans.
Many American households struggle to save for their golden years, especially as the economic and health effects of the COVID-19 pandemic pose an additional threat to retirement security. Spouses of active duty service members, however, face an additional hurdle to saving for retirement. According to the Department of Defense, about one-third of military service members experience a permanent change of station move every year. When service members move, their spouses often relocate with them, putting their own careers on hold.
“Military spouses are the unsung heroes of our country’s national defense. They often put their professional lives on hold, threatening their long-term retirement security,” said Senator Collins. “Our bipartisan bill would help to encourage small employers to provide military spouses with accelerated access to retirement plans and employer contributions.”
“For many military spouses, saving for retirement is difficult because of how often their families will move in service to our country,” Senator Hassan said, “Our bipartisan bill will encourage small employers to provide spouses of service members with a retirement plan, which will help military families save for a secure retirement."
Under the Military Spouses Retirement Security Act:
· Small employers – with 100 employees or fewer – would be eligible for a tax credit of up to $500 per year per military spouse.
· The credit would be available for three years per military spouse.
· The amount of the credit would be equal to $200 per military spouse plus 100 percent of all employer contributions for that spouse, up to $300.
· Small employers must make a military spouse immediately eligible for retirement plan participation within two months of hire.
· Upon plan eligibility, a military spouse must be eligible for any matching or non-elective contribution available to a similarly situated employee with at least two years of service, and must be 100 percent immediately vested in all employer contributions.
Click HERE to read the bill text.