If you are a small nonprofit organization or even an association and don’t have a full-time Human Resource specialist on staff, how do you figure out the nuts and bolts of shopping for a retirement plan that serves the needs of your organization or membership?
- First, the organization needs to know how many employees will likely participate in this plan.
- Second, the organization should decide if they are going to offer matching contributions (New Orleans nonprofits that offer matching range from 0-8% in matching benefits).
- Third, it needs to be decided when an employee can enroll in such a plan and when they qualify for vesting.
Once those questions are answered, an organization can begin “shopping” for retirement plan options. There are several different kinds of plans that an organization may offer (here are some examples).
Ultimately, the organization should form some sort of voluntary committee, comprised of either a staff members, a board member, a senior leader and perhaps outside volunteers with expertise in accounting, HR, and/or legal fields. This committee can formulate the necessary questions and prescribe values to different aspects of a retirement plan, so that plans can be compared and weighted.
For larger organizations and certainly for associations with multiple members, they may want to consider releasing a public Request for Proposals, so that they can send it along to retirement plan providers and Third Party Administrators, to see who has the best plan to meet the articulated needs of the group. Here is a Sample RFP for Associations seeking retirement benefitsthat can be adjusted to fit an association.