House Passes Bill for Nonprofit Pension Plan

Staff ReportsiBerkshires
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BOSTON — State Rep. Gailanne M. Cariddi has announced legislation passed last week in the House of Representatives that would allow the state treasurer's office to offer a tax-deferred retirement savings plan to employees of nonprofit organizations. 

The House passed the bill 145-7.

"Many nonprofits work hard to provide health care and human services, and many other valuable services, but don't have the resources to offer a retirement plan for their hard-working staff, who likely not make significant pay," said the North Adams Democrat. "This is will be rewarding for nonprofit employees, as it should be, and it will likely mean greater worker retention in those areas. I'm hoping the Senate will favor the bill as well."

Some 14 percent of workers, nearly a half-million, are employed by nonprofits in the state.

The retirement savings plan that the 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.


House Speaker Robert A. DeLeo said, "these NPOs provide critical services for a wide-ranging demographic. The passage of this bill sends the message that our government cares about these groups and the people they help."

Pending final passage of this bill, the Treasury plans to work with the Internal Revenue Service to establish a retirement savings program that would be made available to all of the non-profit organizations in the state.

The bill, H. 3754, is now on its way to the Senate and then Gov. Deval Patrick for further approval. 

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Williamstown Community Preservation Panel Weighs Hike in Tax Surcharge

By Stephen DravisiBerkshires Staff
WILLIAMSTOWN, Mass. — The Community Preservation Committee is considering whether to ask town meeting to increase the property tax surcharge that property owners currently pay under the provisions of the Community Preservation Act.
 
Members of the committee have argued that by raising the surcharge to the maximum allowed under the CPA, the town would be eligible for significantly more "matching" funds from the commonwealth to support CPA-eligible projects in community housing, historic preservation and open space and recreation.
 
When the town adopted the provisions of the CPA in 2002 and ever since, it set the surcharge at 2 percent of a property's tax with $100,000 of the property's valuation exempted.
 
For example, the median-priced single-family home in the current fiscal year has a value of $453,500 and a tax bill of $6,440, before factoring the assessment from the fire district, a separate taxing authority.
 
For the purposes of the CPA, that same median-priced home would be valued at $353,500, and its theoretical tax bill would be $5,020.
 
That home's CPA surcharge would be about $100 (2 percent of $5,020).
 
If the CPA surcharge was 3 percent in FY26, that median-priced home's surcharge would be about $151 (3 percent of $5,020).
 
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