Products January 16, 2019

ADP Adds SmartDollar to its Stable of Financial Wellness Programs

It is in addition to a number of other financial wellness programs that ADP already makes available.

Reported by

ADP is partnering with SmartDollar to offer the latter’s mobile-friendly financial wellness program to all of ADP’s clients.

ADP already offers a number of financial wellness programs, including those of Pay Activ, DailyPay, Loan Benefits, MeYou Health, Gradifi and Peanut Butter. Employers may log in to the ADP product they use to find out the cost.

Get more!  Sign up for PLANSPONSOR newsletters.

“At ADP, we offer a holistic financial wellness program that can be customized to meet the workplace needs of employers and their employees,” says Chris Luongo, division vice president of strategy, marketing and business services at ADP Retirement Services. “We accomplish this by building relationships with providers, like SmartDollar, specializing in delivering financial wellness solutions.”

Brian Hamilton, vice president at SmartDollar, adds: “Most Americans are living paycheck to paycheck, and nearly half couldn’t afford a $400 emergency without borrowing money. Together, with the extensive reach of ADP, and easy access through ADP Marketplace, more employees than ever can begin to use their most powerful wealth-building tool—their income—to eliminate debt, save for the future and be more productive at work.”
More information about the program can be found here.

Products January 15, 2019

New, Flexible Student Loan Debt Repayment Program

Employees can determine how they want to allocate employer 401(k) matching dollars—be it to their retirement account, to their student loans or to a combination of both.

Reported by

Thrive is offering a new student loan debt repayment program that enables employees to use existing employer 401(k) contribution matching dollars. Employees can determine how they want to allocate these dollars—be it to their retirement account, to their student loans or to a combination of both.

“Direct contributions to student loan debt by the employer can be a major expense for an organization, but we knew there had to be a better way,” says David Krasnow, president of Thrive. “I’d heard from my clients for the past several years [that] they needed a way to help employees struggling with student loan debt. Thrive provides exactly what organizations have been searching for and gives them an edge in hiring and retaining top talent.”

Thrive takes care of all of the administrative work, handling all back-end administration, including education, enrollment and making payments to each participant’s student loan provider from both employee and employer match. Thrive notes that currently, $24 billion in employer matching dollars is unused every year.

Furthermore, Thrive says that 44 million Americans have student loan debt amounting to $1.5 trillion, and $32 billion in student loan debt is in default. More than a million borrowers default every year. By 2023, it is expected that nearly 40% of borrowers will default on these loans.

Thrive also points to research that shows that 76% of employees say that student loan repayment programs would be a deciding factor in accepting a job, and 86% would feel compelled to stay with an employer that offered such a program for at least five years.

«