U.S. Rep. Frank Lucas (R-OK) recently signed on to cosponsor bipartisan legislation that would help spouses of active U.S. duty service members save for retirement by expanding access to employer-sponsored retirement plans.
Rep. Lucas on Sept. 4 cosponsored the Military Spouse Retirement Security Act, H.R. 7927, introduced on Aug. 4 by U.S. Rep. Jason Crow (D-CO), and original cosponsors including U.S. Reps. Brad Wenstrup (R-OH), Mac Thornberry (R-TX), and Jackie Walorski (R-IN). The legislation would allow a credit to small employers with respect to each employee who is a military spouse and eligible to participate in a defined contribution plan of the employer, according to the text of the bill.
“Deployments, training and relocations often make it hard for military families to benefit from financial options often used by their neighbors to help save for retirement,” Rep. Lucas said on Sept. 10, who said the bill “would ease these financial burdens and would encourage small business employers to provide military spouses with accelerated access to retirement plans and employer contributions.”
The U.S. Department of Defense says that about one-third of military service members experience a permanent change of station every year, with their spouses often relocating with them and putting their own careers on hold, according to the congressman’s office.
“Just as the brave men and women of our military execute their missions — whether serving at home or abroad — America’s military families… play an integral role in supporting our Armed Forces.” said Rep. Lucas.
If enacted, H.R. 7927 would make eligible small employers having 100 employees or fewer for a tax credit of up to $500 per year per military spouse, according to a bill summary provided by Rep. Lucas’ office. 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, according to the summary, which noted that small employers also must make a military spouse immediately eligible for retirement plan participation within two months of hire.