Rep. Walker Introduces Bill to Help Veterans Save For Retirement
WASHINGTON, D.C. – U.S. Representative Mark Walker (NC-06) recently introduced H.R. 6089, the Financial Independence for Disabled Veterans Act of 2016. This bill allows disabled veterans to contribute to their Thrift Savings Plan (TSP) account, using their disability compensation.
Last year, Congress gave our servicemen and servicewomen a new way to save for retirement by allowing them to contribute money to a TSP. The TSPs act similar to a 401k, deferring taxes and helping members of the military build a nest egg for the future.
However, under current law our service members are not able to contribute to their retirement once they transition back to civilian life. This makes saving for the future difficult, especially for the veterans of Iraq and Afghanistan, 40% of whom are disabled when they come home.
"Our disabled veterans may leave the military, but they never leave service to our country. Their sacrifice and many of their injuries stay with them," Walker said. "The Financial Independence for Disabled Veterans Act will allow our heroes to be better equipped to make the transition back to civilian life.
"By allowing disabled veterans to keep contributing to their TSP after they leave the Armed Forces will help them gain more financial independence," Walker added.
This retirement provision was based on recommendations from the Compensation and Retirement Modernization Commission (MCRMC). It also comes following Walker hosting multiple roundtables with veterans in the community and getting feedback.
There are more than 46,000 veterans currently living in North Carolina's Sixth District. You can read the full text of the Financial Independence for Disabled Veterans Act of 2016 here.