New Law Aids Nonprofits' Retirement Plans
It will now be easier for small nonprofit organizations in Massachusetts to buy affordable and accessible retirement plans for their employees.
Gov. Deval Patrick yesterday signed into law a bill that will allow nonprofit groups with up to 20 employees to create defined contribution plans.
"Nonprofit professionals are part of every aspect of our lives. They educate us, keep us healthy, take care of the underserved and protect our cultural, historical and environmental treasures," said Rick Jakious, CEO of the Massachusetts Nonprofit Network (MNN), which lobbies for nonprofit organizations.
"This law will have a significant impact on small nonprofits in Worcester County and across the commonwealth," said Tim Garvin, CEO of Worcester-based United Way of Central Massachusetts. "Thousands of organizations and tens of thousands of nonprofit professionals can now band together, creating options for affordable and accessible retirement savings that just weren't available to them individually."
The MNN said the nonprofit sector provides nearly 456,000 jobs and employs 16.7 percent of the workforce, according to a 2011 study by the Center for Civil Society Studies at the Johns Hopkins Institute for Policy Studies. However, a 2009 study by the Boston Foundation found that only 44 percent of small nonprofits provide retirement savings options for their employees, according to the MNN.
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