Retirement Fairness for Charities and Educational Institutions Act of 2023

Subjects: Labor and Employment, Employee benefits and pensions, Financial services and investments, Government employee pay, benefits, personnel management, Religion, Social work, volunteer service, charitable organizations


<html><body><pre>[Congressional Bills 118th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3063 Introduced in House (IH)]

&lt;DOC&gt;






118th CONGRESS
  1st Session
                                H. R. 3063

 To amend the Federal securities laws to enhance 403(b) plans, and for 
                            other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                              May 2, 2023

   Mr. Lucas (for himself, Mr. Gottheimer, Mr. Foster, and Mr. Barr) 
 introduced the following bill; which was referred to the Committee on 
                           Financial Services

_______________________________________________________________________

                                 A BILL


 
 To amend the Federal securities laws to enhance 403(b) plans, and for 
                            other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Retirement Fairness for Charities 
and Educational Institutions Act of 2023''.

SEC. 2. ENHANCEMENT OF 403(B) PLANS.

    (a) Amendments to the Investment Company Act of 1940.--Section 
3(c)(11) of the Investment Company Act of 1940 (15 U.S.C. 80a-3(c)(11)) 
is amended to read as follows:
            ``(11) Any--
                    ``(A) employee's stock bonus, pension, or profit-
                sharing trust which meets the requirements for 
                qualification under section 401 of the Internal Revenue 
                Code of 1986;
                    ``(B) custodial account meeting the requirements of 
                section 403(b)(7) of such Code;
                    ``(C) governmental plan described in section 
                3(a)(2)(C) of the Securities Act of 1933;
                    ``(D) collective trust fund maintained by a bank 
                consisting solely of assets of one or more--
                            ``(i) trusts described in subparagraph (A);
                            ``(ii) government plans described in 
                        subparagraph (C);
                            ``(iii) church plans, companies, or 
                        accounts that are excluded from the definition 
                        of an investment company under paragraph (14) 
                        of this subsection; or
                            ``(iv) plans which meet the requirements of 
                        section 403(b) of the Internal Revenue Code of 
                        1986 if--
                                    ``(I) such plan is subject to title 
                                I of the Employee Retirement Income 
                                Security Act of 1974 (29 U.S.C. 1001 et 
                                seq.);
                                    ``(II) any employer making such 
                                plan available agrees to serve as a 
                                fiduciary for the plan with respect to 
                                the selection of the plan's investments 
                                among which participants can choose; or
                                    ``(III) such plan is a governmental 
                                plan (as defined in section 414(d) of 
                                such Code); or
                    ``(E) separate account the assets of which are 
                derived solely from--
                            ``(i) contributions under pension or 
                        profit-sharing plans which meet the 
                        requirements of section 401 of the Internal 
                        Revenue Code of 1986 or the requirements for 
                        deduction of the employer's contribution under 
                        section 404(a)(2) of such Code;
                            ``(ii) contributions under governmental 
                        plans in connection with which interests, 
                        participations, or securities are exempted from 
                        the registration provisions of section 5 of the 
                        Securities Act of 1933 by section 3(a)(2)(C) of 
                        such Act;
                            ``(iii) advances made by an insurance 
                        company in connection with the operation of 
                        such separate account; and
                            ``(iv) contributions to a plan described in 
                        subparagraph (D)(iv).''.
    (b) Amendments to the Securities Act of 1933.--Section 3(a)(2) of 
the Securities Act of 1933 (15 U.S.C. 77c(a)(2)) is amended--
            (1) by striking ``or (D)'' and inserting ``(D) a plan which 
        meets the requirements of section 403(b) of such Code if (i) 
        such plan is subject to title I of the Employee Retirement 
        Income Security Act of 1974 (29 U.S.C. 1001 et seq.), (ii) any 
        employer making such plan available agrees to serve as a 
        fiduciary for the plan with respect to the selection of the 
        plan's investments among which participants can choose, or 
        (iii) such plan is a governmental plan (as defined in section 
        414(d) of such Code); or (E)'';
            (2) by striking ``(C), or (D)'' and inserting ``(C), (D), 
        or (E)''; and
            (3) by striking ``(iii) which is a plan funded'' and 
        inserting ``(iii) in the case of a plan not described in 
        subparagraph (D), which is a plan funded''.
    (c) Amendments to the Securities Exchange Act of 1934.--Section 
3(a)(12)(C) of the Securities Exchange Act of 1934 (15 U.S.C. 
78c(a)(12)(C)) is amended--
            (1) by striking ``or (iv)'' and inserting ``(iv) a plan 
        which meets the requirements of section 403(b) of such Code if 
        (I) such plan is subject to title I of the Employee Retirement 
        Income Security Act of 1974 (29 U.S.C. 1001 et seq.), (II) any 
        employer making such plan available agrees to serve as a 
        fiduciary for the plan with respect to the selection of the 
        plan's investments among which participants can choose, or 
        (III) such plan is a governmental plan (as defined in section 
        414(d) of such Code), or (v)'';
            (2) by striking ``(ii), or (iii)'' and inserting ``(ii), 
        (iii), or (iv)''; and
            (3) by striking ``(II) is a plan funded'' and inserting 
        ``(II) in the case of a plan not described in clause (iv), is a 
        plan funded''.
                                 &lt;all&gt;
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