Public Service Retirement Fairness Act of 2020

To modify rules relating to 403(b) plans. 1. Short title This Act may be cited as the Public Service Retirement Fairness Act of 2020 2. Enhancement of 403 (b) (a) Permitted investments (1) In general Section 403(b)(7)(A)(i) (i) the amounts to be held in that custodial account are invested in regulated investment company stock or a group trust intended to satisfy the requirements of Internal Revenue Service Revenue Ruling 81–100 (or any successor guidance), and . (2) Conforming amendment Section 403(b)(7) of such Code is amended by striking for regulated investment company stock (3) Effective date The amendments made by this subsection shall apply to amounts invested after December 31, 2019. (b) 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) (11) Any— (A) employee’s stock bonus, pension, or profit-sharing trust which meets the requirements for qualification under section 401 (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 of such trusts, government plans, or church plans, companies or accounts that are excluded from the definition of an investment company under paragraph (14) of this subsection; (E) plan which meets the requirements of section 403(b) (i) such plan is subject to title I of the Employee Retirement Income Security Act of 1974 ( 29 U.S.C. 1001 (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 (F) 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 (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 (E). . (c) Amendments to the Securities Act of 1933 Section 3(a)(2) of the Securities Act of 1933 ( 15 U.S.C. 77c(a)(2) (1) by striking or (D) (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 (2) by striking (C), or (D) (C), (D), or (E) (3) by striking (iii) which is a plan funded (iii) in the case of a plan not described in subparagraph (D), which is a plan funded (d) 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) (1) by striking or (iv) (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 (2) by striking (ii), or (iii) (ii), (iii), or (iv) (3) by striking (II) is a plan funded (II) in the case of a plan not described in clause (iv), is a plan funded

Summary: Public Service Retirement Fairness Act of 2020 This bill expands the ability of 403(b) retirement plans (i.e., retirement plans designed for certain employees of public schools, nonprofits, and churches) to invest in collective investment trusts, which are groups of pooled investment assets held by a bank or trust company.