As part of their efforts, Senator Jennifer L. Flanagan and State Representative Liz Malia are supporting legislation H2411/S1303, “An act to provide retirement options for nonprofit organizations.” Flanagan wrote in the Leominster Champion that the bill would provide an alternative retirement option for nonprofit organizations throughout Massachusetts. The program is modeled on the Commonwealth’s SMART (Save Money and Retire Tomorrow) Plan, a voluntary 457 deferred compensation retirement plan offered by the Treasurer’s office to state employees.
Contributions from nonprofits would be pooled together in an effort to generate a greater return than if they were invested individually. The accounts would remain completely separate from public employee funds. Contributions are made by the employee, the employer, or both, on a pre-tax basis and all earnings are tax deferred.Flanagan said the plan would not require any additional cost to the state, since the appropriate infrastructure is already in place.