Offering a 403(b) and a Student Loan Payment Matching Contribution Program

Q. What should an employer that offers a 403(b) plan consider regarding offering a student loan matching contribution program? 

A. The vast majority of school systems that offer 403(b) plans do so as supplemental retirement savings programs, so matching contributions are not typically offered to employees. 

A school districts will need education not just about plan design, but also guidance on the operational mechanics involved. The prevalence of multi-provider plans in K12, and the use of individual annuity contracts and custodial agreements may create other complications.