An effort to bring more workers into retirement plans sees success

GREENWOOD VILLAGE, COLO. June 10, 2024 – Empower, the retirement plan provider for the  Massachusetts Defined Contribution CORE^® Plan, announced today that the Commonwealth of Massachusetts is celebrating the 200th CORE Plan adopter in its nonprofit sector.

The CORE Plan is the first public-sponsored multiple employer 401(k) retirement plan (MEP) available to Massachusetts nonprofit organizations with 20 or fewer employees. Empower has been the retirement plan provider for the CORE Plan since the program sold its first plan in 2018 and offers administrative, recordkeeping, communication and investment education services.

The CORE Plan currently has approximately $35 million in assets and has been adopted by more than 200 nonprofit employers across the state. Currently, more than 80% of participating nonprofits offer employer contributions to their employees’ accounts, and over 1,900 employees are participating in the program.1

The CORE Plan’s MEP design allows multiple unaffiliated employers domiciled in Massachusetts to join the program under one plan and trust. 

“Partnering with the Commonwealth of Massachusetts and providing access to these small nonprofit businesses has been a great achievement that will hopefully propel other states to follow,” said Rich Linton, president and chief operating officer at Empower. “All American workers should have access to a workplace retirement plan, no matter where they work, and Massachusetts is a terrific example of doing the right thing for these employees. All of us at Empower are proud to be a part of the success they are seeing.”

The Massachusetts CORE Plan offers:

• Potentially lower costs for organizations
• Oversight and fiduciary support from the Office of the State Treasurer
• Protections under ERISA for all participating employees

The Commonwealth began developing the CORE Plan in 2012 because at that time approximately 56% of nonprofit employers in Massachusetts with budgets of $250,000 or less did not offer any retirement benefits outside Social Security.

• The nonprofit business sector represents approximately 17% of the Massachusetts state economy, employing over 520,000 individuals and making it the sixth largest in the nation as a percentage of state economy.
• Nearly 85% of employers adopting the CORE Plan are startups, meaning they did not offer any retirement benefits outside Social Security prior to adopting the CORE Plan.

“I am very excited about this key milestone in the CORE Plan’s success,” said State Treasurer Deborah B. Goldberg. “Nonprofit workers contribute so much to their communities, and we are thrilled to provide them with great retirement savings options so they can have the secure financial futures they deserve.”

Linton noted that the greatest public-private partnership in America is the 401(k) system. Empower has several offerings that seek to reduce plan expenses for small employers, including its Ready Select™ solution and MEP solutions like the one offered by Empower and the Commonwealth of Massachusetts.

“There are still too many employers who cannot afford to offer retirement benefits to their employees, so watching the progress being made by the Commonwealth of Massachusetts is substantial,” Linton said.
“When individuals do not have access to workplace retirement plans, they are unable to prepare for their futures, and that’s not the outcome American workers deserve.”

For more information about the CORE Plan, visit empower.com/client/mass/employer/.

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Empower readies new digital solution to help small employers create 401(k) plans | Empower

ABOUT EMPOWER

Recognized as the second-largest retirement services provider in the U.S.2 by total participants, Empower administers approximately $1.6 trillion in assets for more than 18.5 million investors3 through the provision of retirement plans, advice, wealth management and investments. Connect with us on empower.com, Facebook, X, LinkedIn, TikTok and Instagram.

Media contacts:

Stephen Gawlik - Stephen.Gawlik@empower.com

Mandy Cassano - Mandy.Cassano@empower.com