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Nebraska, Aug. 15, 2018 (GLOBE NEWSWIRE) -- August 15, 2018 — There are two significant, opposing financial challenges in today’s workforce: saving for retirement and paying off student loan debt. Employees often have a hard time planning for future retirement when they are focused on paying off their student loans. According to a study from Ipsos, 69% of millennials aren’t saving for retirement because of more pressing financial demands.
This means many employees aren’t fully benefiting from employer 401(k) or 403(b) match programs. It is estimated that American employees are leaving approximately $24 billion in employer contributions on the table each year according to the Financial Industry Regulatory Authority. This is money that employers have allocated to support their associates.
Employee Choice, offered exclusively through BenefitEd, is a new program that allows employees to redirect or split their employer-matched retirement funds to help them pay down their student loan debt. By giving employees the opportunity to choose how to use their matching funds, they have more control over where their money goes, so they can pay down debt more quickly and position themselves to save for retirement.
Employee Choice also helps address a barrier employers face when looking to add student loan repayment benefits: cost. With Employee Choice, companies can offer a student loan repayment benefit without significantly changing the total cost of benefits or dollars they’re expensing. This product is the first of its kind and is available to employers starting in August of 2018.
“BenefitEd brings complete flexibility to employers looking to support the education and financial goals of their employees,” said Scott Gubbels, executive director of BenefitEd. “Employee Choice is just another example of how we are helping progressive companies attract, retain, and engage today’s workforce.”
Employee Choice doesn’t require a company to amend its retirement plan summary documentation. It remains a separate and distinct service to keep implementation easy and minimize the cost impact. For more information about the program, go to youbenefited.com/products/employee-choice/.
BenefitEd offers student loan repayment and college savings programs that help progressive employers create a more engaged and productive workforce. As a joint venture between Ameritas and Nelnet, BenefitEd leverages a deep understanding of employee benefits programs and expertise in education payment processing.
Founded in 1887, Ameritas Life and its affiliated companies offer a wide range of insurance and financial products and services to individuals, families, and businesses. These products and services include life insurance; annuities; individual disability income insurance; dental, vision and hearing care insurance; retirement plans; investments; mutual funds; asset management and public finance. Securities offered through affiliate Ameritas Investment Corp., member FINRA/SIPC. For more information, visit Ameritas.com.
Nelnet (NYSE: NNI) is a diversified and innovative company focused on offering educational services, technology solutions, telecommunications, and asset management. Nelnet helps students and families plan and pay for their education and makes the administrative processes for schools more efficient with student loan servicing, tuition payment processing, and school administration software. Through its subsidiary, ALLO Communications, Nelnet offers fiber optic services directly to homes and businesses for ultra-fast internet and superior telephone and television services. The company also makes investments in real estate developments and new ventures. For more information, visit Nelnet.com.
Mike Kuhl BenefitEd (402) 458-3024 Mike.Kuhl@nelnet.net