Non-profits can match their mission using screened, load-waived or no-load funds

SPRINGFIELD,MA,. - June 25, 2008 - According to a 2007 Internal Revenue Service (IRS) regulation, organizations qualifying as 501(c)(3) non-profits with a 403(b)(1) retirement plan in place must revise their plans by December 31, 2008. As the changes will result in increased administration by employers, it is a good opportunity for companies to choose funds that not only are no-load or load-waived, but that also reflect the mission of the organization.

Social(k) (www.SocialK.com), a paperless retirement platform provider, is offering just such a plan – the 403(b)(7). This plan can take the place of the 403(b)(1) and offers no-load and load-waived mutual funds. Plus, employees and their advisors can choose from more than 150 screened socially responsible invested funds, enabling them to align the mission of the organization with the focus of the funds. (In addition, Social(k) offers almost 2000 conventional funds to enable advisors to make the right mix for each client).

According to a 2006 Calvert/ Yankelovitch survey, less than one-third (32%) of employees have access to socially responsible funds as part of their retirement plans yet more than two-thirds (68%) of employees say they would invest in such funds if available.

Organizations choosing screened funds won’t be alone. A 2007 Social Investment Forum survey found that 60 percent of defined benefit sponsors plan to include socially responsible investment (SRI) options in their retirement plans by 2010.

The IRS requires that these 403(b)(1) plans will need increased recordkeeping and employer involvement. In particular, the employer will have to draw up and sign a plan document and annually report the status of the plan each year to the federal government. Traditionally, providers offering 403(b)(1) plans offer only conventional funds with sales loads or high expense ratios.

Organizations taking the opportunity to provide an SRI-based plan with no-load or load-waived mutual funds need only terminate their current 403(b)(1) plan, have their employees open and fund IRA accounts for a 12 month period, then segue into a Social(k) 403(b)(7) account.

Retirement plans are one of the most popular employee benefits offered, helping companies attract and retain good employees. Now is the time to be sure they can profit with principal.

For information on the IRS regulation changes, see
http://www.irs.gov/retirement/article/0,,id=172430,00.html or
http://www.irs.gov/pub/irs-tege/td9340.pdf.