REP. TORRISI ANNOUNCES PASSAGE OF NON-PROFIT DEFERRED COMPENSATION PLAN
(BOSTON) –Representative David Torrisi (D-North Andover) joined his colleagues in the Massachusetts House of Representatives in passing legislation that allows the State Treasurer’s office to offer a tax-deferred retirement savings plan to employees of non-profit organizations.
“This legislation will allow the many non-profit organizations within our state to set up retirement savings plans for their employees without constrictive administrative costs”, said Representative Torrisi. “These employees often work with our most challenging populations and it is critical that we provide them with the tools to better prepare for their futures. Providing this type of incentive will ensure that the NPO workforce remains strong,” said Torrisi.
According to the Boston Foundation, 56% of grassroots organizations with budgets smaller than $250,000 don’t offer any sort of retirement plan to their employees; Fourteen percent of our state’s workforce are in the non-profit sector. Pending final passage of this bill, the State Treasury plans to work with the Internal Revenue Service to establish a solid retirement savings program that would be made available to all of the non-profit organizations in our Commonwealth.
The retirement savings plan that the State Treasury is aspiring to create would be similar to a 401(k) or a 403(b). The plan that will be established for NPOs will deduct pre-tax dollars from an employee’s paycheck and invest them in a tax deferred market portfolio. The Treasurer’s Office would administer the participant-funded plan at no cost to taxpayers.
This legislation is now headed to the Senate and then Governor Deval Patrick for further approval.
October 2011
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