New EARN 403(b) plan lets member nonprofits pool their buying power to offer professional retirement benefits at institutional pricing; enrollment now open
NEW YORK, NY – Nonprofit New York (NPNY) is launching the EARN 403(b) Plan to give nonprofit organizations a viable alternative to the Secure Choice mandate, while offering additional features, such as higher contribution opportunities for employees, employer match availability, and professional management.
New York’s nonprofit sector employs 1.4 million workers—more than finance or manufacturing—, but small to mid-size groups can’t afford standalone plans due to high costs, administrative complexity, and legal risks, leaving many employees without retirement security.
New York’s Secure Choice Savings Program became applicable as of March 18, requiring employers with 30+ workers and no retirement plan to enroll in the basic IRA Roth default program. Enrollment deadlines for smaller organizations are in May and July.
The state’s Secure Choice provides only a basic Roth IRA with no employer match capability, no professional investment management, and annual contribution limits of $7,500. The EARN Plan, short for Equitable Access to Retirement for Nonprofits, offers:
- A 403(b) structure with professional fiduciary management
- Financial education for participants
- Employer match flexibility, and employee contribution limits of $24,500 (and even higher for individuals over age 50).
Nonprofits that adopt a qualifying retirement plan like the EARN Plan are exempt from the Secure Choice requirement.
“Nonprofit workers choose this sector because they believe in the mission,” said Jacqueline M. Ebanks, President and CEO of Nonprofit New York. “That commitment shouldn’t cost them their financial future. We built the EARN Plan because
the people who hold this city together deserve a real path to retirement security. We’re enrolling our own staff first because we believe in what we’re offering.”
The plan uses a Pooled Employer Plan structure, developed in partnership with Mutual of America Financial Group, OneDigital Investment Advisors, and Group Plan Systems. Rather than each nonprofit bearing plan sponsorship alone, adopting organizations join through a Participation Agreement. Professional fiduciaries then assist with investment management and plan administration, while Mutual of America serves as recordkeeper and provides financial education to employees at every participating organization. Each
nonprofit retains flexibility over their own plan’s eligibility rules and employer contribution formulas, while partnering with professional fiduciaries to help protect from potential employer liabilities.
Mutual of America’s community-based pricing model calculates fees based on total assets across all participating organizations, not the size of any single employer.
Nonprofit New York is hosting a series of free information sessions in partnership with Mutual of America and OneDigital for organizations interested in learning more about the EARN Plan. The sessions will cover key considerations when evaluating retirement plans, an overview of pooled employer plan structures, and what organizations should weigh when reviewing their current benefits. NPNY member organizations that attend will also have the opportunity to schedule a complimentary 1:1 benchmarking exercise. Sessions are scheduled for:
Nonprofits that already sponsor a retirement plan can request a free benchmarking analysis from Mutual of America and OneDigital, comparing their current fees, investments, and fiduciary structure against the EARN Plan.
Enrollment is now open to all Nonprofit New York Members.
About Nonprofit New York
Nonprofit New York champions and strengthens nonprofits through capacity building and advocacy to cultivate a unified, just, and powerful sector. For four decades, the organization has served as a hub for nonprofit organizations across the New York metropolitan area, offering training, resources, and member benefits that help nonprofits operate effectively and invest in their people. For more information, visit nonprofitnewyork.org.
