The retail pharmacy and health care provider will provide 401(k) matching contributions for employees making qualified student loan payments, starting next year.
Walgreens announced Wednesday the launch of its Student Loan 401(k) Match Program—a benefit for student loan borrowers made available for employers to implement by the SECURE 2.0 Act of 2022.
The new benefit will be available to Walgreens employees in January 2025 and will allow participants to qualify for company 401(k) match contributions as they pay down their student loans.
A spokesperson said Walgreens is working with a third-party provider to implement the match program but declined to specify which one. According to its most recent Form 5500 filing, the Walgreens Retirement Savings Plan is offered through Fidelity Workplace Services and covers 276,701 employees.
The plan had more than $11 billion in assets as of plan year 2022.
According to the announcement, roughly 30% of Walgreens team members are facing financial debt from education—including more than half of its pharmacy team members. According to the American Association of Colleges of Pharmacy, pharmacists have average student loan debt of $170,000.
“We understand the burden student loan debt places on many of our team members, and this program empowers us to make a lasting impact on their financial well-being,” said Elizabeth Burger, executive vice president and chief human resources officer at parent company Walgreens Boots Alliance Inc., in a statement. “With this new benefit, our team members are no longer faced with the difficult choice between managing their student loan debt and investing in a secure financial future—now they can confidently do both.”
The Walgreens student loan match program treats enrolled team member’s student loan payments as if they were contributions to the company’s 401(k) plan. Walgreens will match eligible student loan payments up to 4% of eligible pay. Employees are generally eligible for employer matching contributions after one year of work and 1,000 hours of service.
Walgreens’ announcement came just after the student loan on-ramp period (which followed the COVID-19 pandemic-era loan repayment moratorium) ended on September 30. Student loan borrowers will now face costly penalties and negative credit score adjustments if they miss payments or make late payments.
Walgreens also offers a Pharmacy Educational Assistance Program, which provides tuition assistance each year when eligible employees are enrolled in a professional pharmacy program while working for Walgreens as a pharmacy intern. For all years combined, the awards can be as much as $40,000, according to the announcement.
In exchange for each award, pharmacy students are required to sign an agreement that includes a one-year work commitment as a registered pharmacist at Walgreens. The total work commitment period is equal to the total number of years for which a pharmacy student receives an award under the assistance program.
Source: Plansponsor
