Offering a 457(b) and a Student Loan Payment Matching Contribution Program

Q. What should a governmental employer that offers a 457(b) plan consider regarding offering a student loan matching contribution program? 

A. A governmental 457(b) plan that is considering offering student loan matching contribution program may find it useful to consider:

• the possibility of contribution aggregation limitation issues arising; and 
• the potential for vesting complications if the employer match is not immediately vested.