Legislation is needed to begin laying the groundwork for a pension plan for not-for-profit human service corporations in the state.  Employees of not-for-profit human service providers provide essential, life-saving and often challenging services to poor, sick and elderly persons with a host of behavioral health, housing, family, long term care and other needs.  These challenges have been significantly exacerbated in recent years by a variety of factors, including the COVID pandemic. However, these providers have not received regular cost of living adjustments for most of the past two decades, and as a result, they often have not been able to provide regular salary increases nor competitive benefit packages for their caring and dedicated employees. Therefore, these essential providers are at a significant disadvantage when competing for employees with government employers, hospitals and hospital systems, insurers, etc., all of which have competitive retirement plans.

As a result, recruitment and retention of sufficient, competent employees can be difficult for many not-for-profit human service providers in this state.  While many good people desire to work in this field, they also need sufficient salaries and benefits to support their families both now and in the future, including their retirement years. Clearly, competitive employee benefits packages with reasonable retirement benefits will help to recruit and retain vitally needed employees, and help to keep them productive, happy and loyal.

This legislation would require state agencies with financial expertise, as well as other relevant state agencies, to coordinate their efforts to study the landscape of pension and retirement options, and to make recommendations for future actions the state may take to provide optimal retirement plan options for employees of not-for-profit human service corporations in the state.