After years of advocating for improvements in the retirement plans available to them, adjunct faculty members and other parttime employees working in public higher education will finally have more options available this fall.
While most higher education employees are members of the state retirement system, a highquality defined-benefit plan, adjunct faculty and other part-time employees are only able to participate in what is called the OBRA Plan — named for the Omnibus Budget Reconciliation Act of 1990. The plan is funded by deductions from an employee’s salary and has only one investment option, a "capital preservation" fund.
As a result, members cannot benefit from growth in the markets. This has harmed the ability of adjunct faculty members and other part-time employees to build retirement savings.
This fall, there will be new options.
The OBRA pension plan is being changed to allow adjuncts and other part-time employees to choose among SMARTPath retirement funds. These target-date funds will have a mix of securities that are heavily weighted toward stocks when the member is far from retirement age and become increasingly conservative as the member gets closer to retirement.
It is important and advisable to seek the advice of an independent, qualified financial planner before members make this decision or any other about their retirement savings. For those members who want to avoid the risks of investing in the market, the capital preservation plan will still be available.
"After years of watching our retirement savings just sit there, options to have our money grow with the market will be an improvement," said Michael Stassen, an adjunct faculty member at Fitchburg State University.
"It’s a first step, but we need our employer to contribute to our retirement, as well," Stassen continued. "Our demand remains true adjunct justice: fair wages and benefits, improved working conditions, and opportunities for full-time and tenure-track positions."
The new OBRA options will become available Oct. 1. To learn more, members can log in to their SMART Plan accounts. They can also contact their local SMART Plan retirement advisor for assistance by calling 877.457.1900. In addition, the MTA website, massteacher.org, will provide relevant updates as they become available.
