Bay State to Let Non-Profits into DC Plan

May 5, 2005 ( - Massachusetts State Treasurer Tim Cahill on Wednesday announced plans to permit small nonprofit organizations to participate in the Bay State's defined contribution plan as a first step to opening the plan beyond state government.

Cahill, who made the announcement in a Greater Boston Chamber of Commerce speech, said workers from the state’s small businesses might be next in being allowed in the plan, the Boston Herald reported.

“Down the road, yes,” Cahill told the newspaper. “I can’t think of a reason why they shouldn’t.”

The $3-billion defined-contribution plan runs alongside the $36 billion state pension fund, which has given state employees a better-run alternative to Social Security.