Bill giving nonprofits access to state retirement plans passes House
A bill that would allow nonprofits to access retirement savings plans managed by the state passed the House on Wednesday, October 27, clearing another hurdle in becoming a law.
The legislation, House Bill 3754, was approved by the House 143-7 without debate, and it must be approved by the Senate before it can be signed into law by Governor Deval Patrick. The Providers' Council and other nonprofit advocacy organizations have been advocating for this legislation; the Council submitted testimony in May in support of the bill (when it was H02411).
Treasurer Steve Grossman told the State House News Service the legislation would open up retirement savings options for nonprofits that cannot afford the cost of setting up plans for their employees. According to a study done by the Massachusetts Nonprofit Network, the Boston Foundation and Braver PC - "For the Benefit of Our Workers: The Massachusetts Nonprofit Employee Benefit Study" - about 56 percent of grassroots nonprofits with a budget of less than $250,000 do not offer a retirement plan to their employees.
For more information on the legislation, you can read a State House News Service article.
The Council will continue to keep its members updated regarding next steps with this legislation. Members with questions or comments are encouraged to call Bill Yelenak, director of public policy and communications, at 617.428.3637.