SoFi at Work today announced its latest partnership with Kimley-Horn, a nationwide engineering and design consultancy firm.
Kimley-Horn will pay matching contributions towards qualifying employees’ 401(k) plans based on their student loan repayments. Currently, after one year of service, Kimley-Horn matches employees’ 4% contribution with an 8% company contribution. Starting January 1, 2024, employees’ student loan repayments can replace all or a portion of the 4% contribution, according to a release announcing the partnership.
“The ability to count student loan repayments toward 401(k) contributions lets employees both pay for the past and maximize savings for the future,” said Kimberly Plessinger, compensation and benefits manager at Kimley-Horn, in a statement.
The firm will utilize SoFi at Work’s Student Loan Verification (SLV) service to operate plan design, data security, reporting, and student loan payment verification. The personal finance company launched its SLV service this past June, with the aim of linking student loan debt payments to elective 401(k) or 403(b) retirement contributions.
Kimley-Horn will also work with T. Rowe Price, who will deliver the contributions for retirement matching, said the firm. The organization is the latest to embrace student loan repayment options after provisions outlined in SECURE 2.0 allowed companies to offer the 401(k)-benefit beginning 2024. Student loan debt is among the top retirement planning deterrents to young workers, with research indicating its influence on future savings.
The resurgence of student loan payments this past fall saw workers of all age groups say they expect to experience ramifications. Data from the Nationwide Retirement Institute in September found that 12% of employees ages 45 and up currently hold student loan debt, and 61% believe the reinstatement of payments has negatively impacted their financial stability and long-term financial planning.
Furthermore, 66% expect the payments to have an adverse impact on their retirement planning.
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