401(k) Specialist Issue 3 - 2024 - 42

401(k) PRODUCT WATCH
Vestwell and TIAA Introduce Lifetime
Income Offering
VESTWELL IS PARTERING WITH TIAA to launch a lifetime income
solution on its platform in 2025.
The TIAA Secure Income Account (SIA), a guaranteed lifetime income
solution, will be available through target-date structures for 401(k) and
403(b) plans on the Vestwell platform.The SIA aims to offer guaranteed
interest for participants saving for retirement, along with a pension-like
retirement income to help cover everyday living costs for retirees. TIAA
and Vestwell assure that amounts saved in the SIA are protected in
volatile markets.
" Addressing retirees' financial security is an essential component
of evaluating modern solutions to close the savings gap, " said Aaron
Schumm, founder and CEO of Vestwell. " We are proud to work with
TIAA, a company that shares our commitment to expanding access to
industry-leading saving and retirement solutions, including guaranteed
lifetime income, through the workplace. "
TIAA expects to see greater interest from advisors and clients, noting
how legislation in recent years has lessened hurdles in offering annuity
options. The SECURE Act contained several provisions that expanded
access to lifetime guaranteed options when signed into law in 2019.
" With the original SECURE Act in 2019 removing barriers to offering
lifetime income solutions in 401(k) plans, we are seeing a greater appetite
from advisors and employers of all sizes to offer retirement income plans
with annuities as a core component, " said Colbert Narcisse, chief product
and business development officer at TIAA. " Electing lifetime income can
offer employees a sense of security, with the assurance they will have
guaranteed income through retirement. "
The agreement follows a strategic investment from TIAA Ventures-the
firm's venture capital investment program-in Vestwell's Series D round
funding in 2023.
Walgreens Launches Student Loan
401(k) Match Program
will also match eligible student loan payments up to 4% of eligible pay.
Employees, who Walgreens described as " team members, " are eligible for
the program after one year and after completing 1,000 hours of service.
" We understand the burden student loan debt places on many of
our team members, and this program empowers us to make a lasting
impact on their financial well-being, " said Elizabeth Burger, EVP and
chief human resources officer, Walgreens Boots Alliance, which owns
the retail pharmacy chain. " With this new benefit, our team members
are no longer faced with the difficult choice between managing their
student loan debt and investing in a secure financial future - now
they can confidently do both. "
Walgreens also cited substantial loan debt from its employees for
WALGREENS announced the launch of its new Student Loan 401(k)
Match Program, available to employees beginning January 2025.
The program follows a SECURE 2.0 provision that allows employees to
maximize on 401(k) savings when paying down student debt. According
to Walgreens, the program treats student loan payments like contributions
to the Walgreens Retirement Savings Plan 401(k). Walgreens
42
ISSUE 3 2024 | 401kSpecialist.com
its reasoning in offering the new program. Roughly 30% of Walgreens
employees face financial debt from higher education, including more
than half of its pharmacy team members. Pharmacists are among the
top professions with the most student loan debt, averaging a debt
amount of $170k, according to the American Association of Colleges
of Pharmacy.
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401(k) Specialist Issue 3 - 2024

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