A new bipartisan bill would allow employees to direct employer benefit contributions toward retirement savings, student loan repayment or health care expenses. The proposal would give employers greater flexibility to meet workers’ financial needs.
Our view: The Association endorsed the bipartisan legislation because it has the potential to help employers deliver greater value from existing benefits.
“Today’s workforce spans generations, income levels, and life stages, and employers want the flexibility to meet employees where they are,” said Chatrane Birbal at the CHRO Association.
The details: Sens. Todd Young (R-Ind.) and Cory Booker (D-N.J.) introduced the Optimizing Participant Tax Incentives through Optional Noncash Selections (OPTIONS) Act on November 11. The legislation would:
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Expand employee choice: Allow workers to allocate eligible employer contributions among 401(k) plans, student loan repayment, health savings accounts (HSAs) and health reimbursement arrangements (HRAs).
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Preserve tax advantages: Establish a legal framework for employers to offer these options while maintaining existing tax benefits.
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Support workforce needs: Give employers more flexibility to tailor benefits across generations, income levels and life stages.
Why it matters: For CHROs and total rewards leaders, the proposal could create more opportunities to personalize benefits without necessarily increasing employer contributions.
What’s next: Companion legislation has been introduced in the House by Reps. Greg Steube (R-Fla.) and Suzan DelBene (D-Wash.). With limited legislative time remaining this year, the bill is unlikely to advance before the next Congress but could be reintroduced in 2027.
