Converting unused vacation time into a student loan debt payment benefit can be a win-win
As we start the fourth quarter of 2020, many workers have a significant amount of unused paid time off (PTO) due to the pandemic’s impact on their travel plans and feelings about job security.
Time away from work is important for physical and mental health so employers are encouraging employees to use their vacation days. However, some employers have mounting concerns about a big spike in PTO requests that could negatively impact productivity as the holiday season approaches.
One solution to this dilemma is to allow employees to convert some or all of their unused vacation time into a one-time student loan debt payment. This can be a win for employers and a win for employees.
- Win for employers: The CARES Act allows employers to pay a tax-free benefit up to $5,250 towards an employee’s student loans through the end of 2020.
- Win for employees: Voya research has found that 96% of individuals with student loan debt would be likely or very likely to save more for retirement if they felt like they had their student debt under control.1
Voya Financial has teamed up with Vault, an industry-leading student loan benefit technology provider, to offer a PTO conversion solution:
- Employers can set custom “exchange rates” for converting PTO (paid time off) into one-time student loan debt payments
- Vault makes converted PTO payments directly to the employee’s student loan provider on the employer’s behalf
Reach out to your Voya Relationship Manager to learn more about Vault™ student loan debt benefit solutions.
Vault is a separate entity and not a corporate affiliate of Voya Financial. Voya clients receive discounted pricing on any Vault product. Vault pays Voya Retirement Insurance and Annuity Company (VRIAC) an ongoing quarterly marketing fee for referring plan sponsors that elect Vault’s student loan debt services.
1 Findings from Voya’s Financial Wellness Survey (as of August 31, 2020).