State Unveils 401(k) Plan for Small Massachusetts Nonprofits
October 26, 2017 State Treasurer Goldberg recently announced the launch of a new, multiple employer, 401(k) retirement plan, called the CORE Plan, that was developed specifically for Massachusetts nonprofit organizations with 20 or fewer employees.
Key features of the CORE (Connecting Organizations to Retirement) Plan include administration and oversight provided by the treasurer's office on behalf of participating employers, fiduciary assistance to the states small nonprofits, professionally developed investment options, and automatic enrollment.
Because the treasurer's office will assume most administrative responsibilities on behalf of participating employers and their employees, nonprofits utilizing the new, defined contribution plan may potentially save costs associated with administering retirement plans offered through their organization.
I am proud to launch the CORE Plan in partnership with the Massachusetts Nonprofit Network for organizations across the state, said Goldberg. This innovative savings plan will help nonprofit employees save for retirement, while minimizing fees and charges that can significantly impact long-term savings.
Jim Klocke, CEO of Massachusetts Nonprofit Network
, the state's nonprofit trade association, said the CORE plan "will benefit thousands of nonprofit organizations and employees across the Commonwealth."
Nonprofit employers may be eligible to offer the CORE Plan to their employees if they:
- Are registered as a 501(c) organization with the IRS
- Officially domiciled in Massachusetts
- Registered as a nonprofit corporation with the secretary of the Commonwealth of Massachusetts
- In good standing as determined by required annual filings with the secretary of the Commonwealth of Massachusetts
- Have 20 or fewer employees
- Have their payroll administered via an eligible third-party payroll service, e.g., Paychex, ADP, etc.
There is an annual fee to participate in the CORE Plan that is automatically deducted from each participants account. In addition, participating employers will be charged an annual administrative service fee, and each investment option has an administrative, advisory, and investment management fee.
The Massachusetts Defined Contribution CORE Plan was established under Chapter 29, Section 64E of the Massachusetts General Laws. Learn more