Crow, Wenstrup Introduce Legislation to Help Military Families Save for Retirement
This morning, U.S. Representatives Jason Crow (D-CO-06) and Brad Wenstrup (R-OH-02), joined by House Armed Services Ranking Member Mac Thornberry (R-TX-13), and Reps. Stephanie Murphy (D-FL-07), Jackie Walorski (R-IN-02), Jimmy Panetta (D-CA-20), and Kenny Marchant (R-TX-24) introduced the Military Spouse Retirement Security Act, 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 every year. When service members move, their spouses often relocate with them, putting their own careers on hold.
"Deployments, training, and relocations can take a real toll on a military family. No one knows that more than military spouses who, in addition to carrying an emotional burden, often carry a financial one too" said Crow. "Our bipartisan bill is a commonsense fix that would help provide financial security and stability for military families in a life that is often marked by constant change and upheaval."
"Military spouses are among the unsung heroes whose support and sacrifice play a critical role in keeping America safe and free. Far too often, due to frequent – and sometimes unexpected – relocation, they are unable to make use of the financial options that would otherwise be available to them to help save for retirement," said Wenstrup. "This bipartisan bill can help them overcome some of those obstacles, alleviating one of the many burdens our military spouse's shoulder."
Under the Military Spouse 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.
Crow is a member of the House Armed Services Committee, where he serves on the subcommittees on Readiness and Emerging Threats and Capabilities. Prior to serving in Congress, Crow served in three combat tours in Iraq and Afghanistan with the 82nd Airborne Division and 75th Rangers Regiment.
Before joining the House Ways and Means Committee and the House Permanent Select Committee on Intelligence, Wenstrup served on the House Armed Services and Veterans Affairs committees from 2013-2018. He is currently a member of the U.S. Army Reserves and, in 2005, deployed for a 12-month tour of duty with the US Army's 344th Combat Support Hospital, Task Force 344, to Abu Ghraib, Iraq, where he served as the podiatrist, the Chief of Surgery, and the Director of the Wound Care Clinic.
Click HERE to read the bill text.