Reps. Crow, Wenstrup Pass Bipartisan Measure to Help Military Families Save for Retirement

Statement

Measure Passes in Expansive Retirement Package Helping More Americans Achieve Long-term Financial Well-Being

Representatives Jason Crow (D-CO) and Brad Wenstrup (R-OH) today passed the Military Spouse Retirement Security Act, their bipartisan measure to help military families save for retirement by expanding access to employer-sponsored retirement plans. The measure, which was introduced in March of last year, passed the House today as part of the Securing A Strong Retirement Act -- an expansive retirement package that expands automatic enrollment, simplifies many retirement plan rules, and strengthens small businesses' ability to offer workplace retirement plans to make it easier for Americans to plan for their golden years.

The package also strengthens a tax credit for small employers to cover startup costs for pension plans -- a provision particularly important to Rep. Crow, a member of the House Small Business Committee.

"In the Army I saw firsthand that when a soldier serves, the entire family serves. Deployments, training, and relocations can take a big toll on our military families and too often, military spouses have to make sacrifices in their own careers to support their partners' service -- affecting the whole family's long-term financial security," said Rep. Crow. "I'm proud to have passed my and Rep. Wenstrup's bill today as part of the Securing a Strong Retirement Security Act. This expansive bipartisan retirement package we passed will help our military families and all hardworking families achieve greater financial security into the future."

"Our nation's military spouses make countless sacrifices in support of our nation's warfighters. With the military lifestyle often requiring families to continuously move from one location to another, these unsung heroes are often asked to put their own goals on hold. Too often, military spouses cannot remain in a job long enough to fully utilize the financial options available to those with longevity at a business or company," said Rep. Wenstrup. "Our commonsense, bipartisan bill would help military families alleviate some of the stresses they face by providing them with more financial security and stability."

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 every year. When servicemembers move, their spouses often relocate with them, putting their own careers on hold.

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 $250 per military spouse plus 100 percent of all employer contributions for that spouse, up to $250.
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.
The bipartisan package will now move to the Senate for consideration.

Click here for full text of the legislation.

Source