MNN Supports Policy Proposal to Expand Access to High Quality, Affordable Nonprofit Retirement Benefits

The nonprofit workforce is the lifeblood of the sector. Individuals working for nonprofits often forego higher salaries in order to dedicate their careers to advancing the public good. But many nonprofits struggle to offer the competitive benefits that help them to not only recruit and retain employees, but to recognize the value of their workforce. In addition, a growing number of people are not prepared for retirement. According to the National Institute on Retirement Security, the median retirement account balance is $0 among all working individuals. Even amongst those who have begun saving, the typical worker had a modest account balance of $40,000.

Recognizing this trend, Massachusetts Treasurer Deborah Goldberg launched the “Connecting Organizations to Retirement” (CORE) Plan – a statewide multiple employer 401(k) retirement plan available to Massachusetts nonprofits with 20 or fewer employees. This innovative plan allows nonprofits to focus on the primary mission of their organizations, while offering a comprehensive benefit to their employees. Currently, 63 small nonprofits around the Commonwealth are participating, helping employees to secure their financial futures.

While great strides have been made in enabling nonprofits to offer more competitive benefits for their employees, the CORE plan is currently limited by statute to those with 20 or fewer employees. On October 31st, MNN testified in support of H.36, An Act Relative to the 401(k) CORE Program, which would remove the cap and allow nonprofits of all sizes to participate.

Allowing nonprofit employers of any size to participate in the CORE Plan will increase access to this critical service. Increased enrollment will also assist in achieving economies of scale, making the plan more affordable overall to nonprofits across the state.

To join in our effort to allow nonprofits of any size to participate in the CORE plan, please contact your legislator today and voice your support of H.36.

To learn more about the CORE Plan, click here. Please contact MNN’s Director of Government Affairs, Danielle Fleury, with any questions.