Messer Sponsors Bill To Help Grad Students Save For Retirement

U.S. Rep. Luke Messer is sponsoring a bill that would allow graduate students receiving stipends from grants or fellowships to save part of that money for retirement. (courtesy of Rep. Messer’s office).

Indiana Rep. Luke Messer is sponsoring a bill in the U.S. House of Representatives that would allow graduate students to save portions of their fellowship and grant stipends in retirement accounts.

Democrat Elizabeth Warren and Republican Mike Lee introduced The Graduate Student Savings Act of 2016 in the Senate earlier this year, and Messer, along with Democrat Rep. Joe Kennedy, is sponsoring the companion bill in the House.

Right now, graduate students who have part-time jobs or work as research or graduate assistants can save some of their wages in an Individual Retirement Account (IRA). But students who receive a stipend, whether it is through a grant or a fellowship program, legally cannot save that money in an IRA. If passed, this bill would give graduate students that option.

The senators’ plan would allow graduate or doctoral students to take money from their stipends and contribute toward a retirement plan. And that can mean big savings in the long run. The plan would allow a student who puts away $1,500 for 5 years, or $125 a month, to earn an extra $58,000 through interest by the time they retire.

“Grad students and researchers who are studying to improve all of our futures should have the chance to invest in their own.”

Thursday was the last day of the session, so the bill will not get a vote until after they resume after the holidays.