On July 16, Independent Sector (IS) met with sector leaders to learn more about retirement benefit challenges and opportunities for the nonprofit sector. This conversation was part of a series of convenings on the nonprofit workforce led by Independent Sector President and CEO Dr. Akilah Watkins.
These workforce convenings are an opportunity for IS to learn from experts and identify the biggest challenges and opportunities before us to build a healthy nonprofit workforce. We are looking for input from sector leaders on where and how IS can best continue to bring our leadership to workforce issues. The most recent convening on retirement benefits led to an insightful conversation with funders, policymakers, researchers, and nonprofit leaders from state associations and national organizations.
We were joined by a slate of experts who provided context on challenges and opportunities in the retirement space. The group learned about the American worker and retirement from Ben Harris, one of the country’s leading experts on retirement research and policy. We then narrowed our focus on the nonprofit worker with learnings from Just Futures research, Reclaiming Retirement for All.
The group took a deeper dive into specific policy initiatives with Will Hansen at American Retirement Association. The Retirement Fairness for Charities and Educational Institutions Act, which passed the House as an amendment in March 2024, will allow collective investment trusts (CITs) to be included as options in 403(b) plans. We were also joined by staff for a member of the U.S. Senate Finance Committee, who we believe will introduce helpful legislation on retirement issues for the nonprofit workforce in the near future.
The convening also addressed what is happening in states across the country. Leaders of several state associations, including Kevin Dean from Tennessee Nonprofit Network, discussed the models in their states and identified the challenges they’ve faced and where they could use national support.
Leaders in the room noted the sector lacks research on this issue, save for a select few informative studies. One valuable resource that helps us better understand retirement plans in our sector is the PSCA 403b plan survey. American Retirement Association is asking for 403(b) plan sponsors, which includes asset management firms and nonprofit employers, to complete the PSCA’s 2024 403(b) Plan Survey. The deadline is August 9, 2024. You can find more information on the Plan Sponsor Council of America website.
While this was a learning opportunity for IS, and there is still plenty we need to strategize on how IS can best support our workforce around the issue of retirement, we are already advocating on this issue. The Nonprofit Infrastructure Coalition, co-chaired by Independent Sector and KABOOM!, organized with Just Futures on a letter submitted to the IRS in January 2024 expressing disappointment that tax credits for small businesses in Secure Act 2.0 do not include small nonprofits. We continue to advocate on this issue and look forward to sharing more information soon.
What we heard loud and clear coming out of this convening is that there is a role for Independent Sector in the retirement space. Retirement benefits play a crucial role in contributing to a healthy and equitable workforce. We look forward to continuing this conversation and partnering with sector leaders to create new opportunities for our workforce.
If you have thoughts on how IS can support retirement benefits in the nonprofit sector, please email publicpolicy@independentsector.org
Nancy Barry is the Manager, Special Initiatives, Public Policy at Independent Sector
