Walker Introduces Bill to Help Disabled Veterans Save For Retirement
WASHINGTON, D.C. – U.S. Representative Mark Walker (R-N.C.) introduced H.R. 4262, the Financial Independence for Disabled Veterans Act. This bill allows disabled veterans to contribute to their Thrift Savings Plan (TSP) account, using their disability compensation.
In 2015, 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,”Walker said. “Their sacrifice and many of their injuries stay with them. The Financial Independence for Disabled Veterans Act will allow our heroes to keep contributing to their TSP after they leave the Armed Forces and empower them with a more secure financial future.”
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 on policy proposals.
According to the U.S. Department of Veterans Affairs, 181,985 North Carolina veterans received disability compensation in fiscal year 2016. You can read the full text of the Financial Independence for Disabled Veterans Act here.