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Prudential product allows firms to help student-debt-laden workers with retirement

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Prudential Retirement on Monday said it is helping its clients’ employees pay down student loan debt while also building a retirement nest egg, rather than prioritizing one goal over the other.

Prudential Retirement Insurance and Annuity Co. has teamed with Student Loan Genius to enable employers to reward employees for paying off their student loan debt, the Newark, New Jersey-based retirement plan providers said in a statement.

The partnership allows Prudential Retirement’s employer clients to make a pretax contribution to workers’ retirement accounts when that worker makes a student loan payment processed through Austin, Texas-based Student Loan Genius, according to the statement.

The pretax contribution can be paid as a flat dollar amount or as a percentage of the student loan payment or the employee’s compensation, and can be offered annually, monthly or for each payroll period, Prudential Retirement said.

“As student loan debt grows, workers are having to choose between paying off their student loans or prioritizing other important financial goals,” Jamie McInnes, senior vice president and head of total retirement solutions for Prudential Retirement, said in the statement. “For example, our research tells us many workers will choose to pay down debt rather than save for retirement. As an industry, we need to understand this and provide solutions to help maximize retirement security for American workers.”

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