WASHINGTON, D.C. — On Thursday, U.S. Senator Bob Casey (D-PA), Chairman of the U.S. Senate Special Committee on Aging, introduced a legislative package aimed at expanding the Achieving a Better Life Experience (ABLE) program. The ABLE program, established in 2014, allows individuals with disabilities to save money without jeopardizing their access to federal assistance programs like Supplemental Security Income.
“Over the last decade, the ABLE program has been a lifeline for thousands of people with disabilities across the Nation,” said Chairman Casey. “However, we have a lot more work to do to ensure that every person who is eligible for an ABLE account can take advantage of the opportunity to save that the program affords them. By drawing attention to ABLE and allowing employers to contribute to the ABLE accounts of employees with disabilities, the legislative package I introduced will continue my work to remove the barriers that people with disabilities face when trying to save.”
The ABLE Awareness Act
One of the bills, the ABLE Awareness Act, aims to increase awareness of the ABLE program’s benefits. This bill requires federal and state agencies to inform eligible individuals about the program. It will guide them through the eligibility requirements and direct them to resources that can help them open an ABLE account when they enroll in certain benefits programs.
The ABLE Employment Flexibility Act
Another bill, the ABLE Employment Flexibility Act, seeks to accommodate employer contributions to ABLE accounts. Currently, disabled employees might miss out on 401k matching contributions because such contributions could affect their eligibility for federal assistance programs. This act would allow employers to contribute to an employee’s ABLE account instead of a 401k, enabling employees with disabilities to save for retirement without fear of losing their federal benefits.
The ABLE Direct Deposit Act
The third bill in the package, the ABLE Direct Deposit Act, clarifies that direct deposits from employers or government programs can be made to ABLE accounts. This measure will streamline the process, making it easier for people with disabilities to manage their savings directly.
Addressing Economic Disparities
People with disabilities are more than twice as likely to live in poverty compared to those without disabilities. Additionally, households with a person whose disability limits their ability to work need significantly more income to achieve the same standard of living. Until the ABLE program, strict asset limitations for federal benefits prevented people with disabilities from saving significant amounts of money. The ABLE program has already benefited over 170,000 individuals, allowing them to save an average of $11,186 each.
Implications of the Legislation
Senator Casey’s legislative package aims to extend these benefits to a broader population. Only a fraction of the eight million Americans eligible for ABLE accounts currently participate in the program. By increasing awareness and facilitating easier contributions from employers, this legislation could significantly enhance the financial stability and independence of people with disabilities.
The measures proposed by Senator Casey underscore the need for inclusive financial tools that provide equitable opportunities for all citizens. If successful, these bills could mark a substantial step forward in addressing the economic disparities faced by people with disabilities, ensuring they have the resources needed to lead fulfilling, independent lives.
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