Much like a 403(b) or 457 plan, Dowd can help with the implementation of the Massachusetts OBRA SMART Plan: the specific mandatory employee-funded defined contribution plan for part-time, seasonal and short-term public employees. OBRA requires that all local government employees not eligible to participate in their employer’s retirement program be placed in Social Security or another program, such as the SMART plan, which meets all federal requirements.
Dowd Wealth Management can serve both as an ERISA 3(21) or ERISA 3(38) fiduciary for any retirement program, including OBRA. As a conflict-free consultant fiduciary, we believe that any retirement program management is dependent on multiple facets: investment, design, education, plan statistics, investment committee, administration and documentation.
Distribution of OBRA funds
Municipal employers may only distribute Massachusetts SMART Plan benefits in two instances:
- Severance from employment (There is no early withdrawal penalty whether the termination was voluntary or involuntary).
- The death of an employee (Designated beneficiaries will receive the benefits).
Employees can opt to receive their distribution immediately upon severance from employment. Dowd Wealth Management’s financial advisors can help guide you through these plan payouts with reduced administrative burdens and costs.
Dowd Wealth Management Services
Much like our services for retirement systems as well as 403(b) and 457 plans, we can provide support in administering a program to help protect you and your public employees. As your partner and advisor, we will utilize competitive research and analysis to determine the best way to implement your plan. Contact us to learn more about the services we offer that are individually tailored to your municipality or institution’s needs.