Retirement Fairness for Charities and Educational Institutions Act of 2025

Bill: 119-hr-1013
Sponsor: full_name: Rep. Lucas, Frank D. [R-OK-3]
Introduced: 2025-02-05
Policy area: Finance and Financial Sector
Subjects: Employee benefits and pensions

Financial services and investments

Government employee pay, benefits, personnel management

Religion

Social work, volunteer service, charitable organizations
Latest action: action_date: 2025-05-20
text: Ordered to be Reported (Amended) by the Yeas and Nays: 43 - 8.

Summaries:
action_date: 2025-02-05
action_desc: Introduced in House
text: <p><strong>Retirement Fairness for Charities and Educational Institutions Act of 2025</strong><em></em></p><p>This bill allows 403(b) retirement plans (i.e., retirement plans designed for certain employees of public schools, charities, and churches) to invest in collective investment trusts, which are a group of pooled investment assets held by a bank or trust company, and in insurance company separate accounts.</p>

tv_txt: I 119th CONGRESS 1st Session H. R. 1013 IN THE HOUSE OF REPRESENTATIVES February 5, 2025 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.

1. Short title This Act may be cited as the Retirement Fairness for Charities and Educational Institutions Act of 2025 . 4102. 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— (I) if— (aa) such plan is subject to title I of the Employee Retirement Income Security Act of 1974 ( 29 U.S.C. 1001 et seq. ); (bb) 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 (cc) such plan is a governmental plan (as defined in section 414(d) of such Code); and (II) if the employer, a fiduciary of the plan, or another person acting on behalf of the employer reviews and approves each investment alternative offered under such plan described under subclause (I)(cc) prior to the investment being offered to participants in the plan; 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 clause (iii) or (iv) of subparagraph (D). . (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 beneficiaries, or (D) and inserting beneficiaries, (D) a plan which meets the requirements of section 403(b) of such Code (i) 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), and (ii) if the employer, a fiduciary of the plan, or another person acting on behalf of the employer reviews and approves each investment alternative offered under any plan described under clause (i)(III) prior to the investment being offered to participants in the plan, 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 all that follows through retirement income account). and inserting (iii) in the case of a plan not described in subparagraph (D) or (E), which is a plan funded by an annuity contract described in section 403(b) of such Code . (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 (I) if (aa) such plan is subject to title I of the Employee Retirement Income Security Act of 1974 ( 29 U.S.C. 1001 et seq. ), (bb) 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 (cc) such plan is a governmental plan (as defined in section 414(d) of such Code), and (II) if the employer, a fiduciary of the plan, or another person acting on behalf of the employer reviews and approves each investment alternative offered under any plan described under subclause (I)(cc) prior to the investment being offered to participants in the plan, 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 . (d) Conforming Amendment to the Securities Exchange Act of 1934 Section 12(g)(2)(H) of the Securities Exchange Act of 1934 ( 15 U.S.C. 78l(g)(2)(H) ) is amended by striking or (iii) and inserting (iii) a plan described in section 3(a)(12)(C)(iv) of this Act, or (iv) .