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Retirement Fairness for Charities and Educational Institutions Act Heads to Senate

CSpan screenshot for 403(b) plan parity vote.WASHINGTON, D.C. – The U.S. House of Representatives today passed the Retirement Fairness for Charities and Educational Institutions Act (H.R. 1013) by a bipartisan vote of 295-128. The bill would give 403(b) plan participants access to the same cost-efficient investment options already available in 401(k) plans and other employer-sponsored plans. These plans mainly serve teachers, hospital workers, clergy, and nonprofit employees.

The bill amends federal securities law to let 403(b) plans use collective investment trusts (CITs) and nonregistered insurance company separate accounts. Federal law already allows 401(k) plans, 457(b) plans, and the federal Thrift Savings Plan to use them. Sponsors include Reps. Frank Lucas (R-Okla.), Josh Gottheimer (D-N.J.), Bill Foster (D-Ill.), and Andy Barr (R-Ky.).

The Insured Retirement Institute (IRI) has advocated for this change across several Congresses.

“Where you work should not limit your retirement savings options,” said Wayne Chopus, President and CEO, IRI. “We were pleased to see the House once again express strong bipartisan support to giving more than 10 million teachers, nurses, and other nonprofit workers access to the same low-cost retirement investment options available to millions of other participants in employer-sponsored retirement plans. Now it’s time for the Senate to act.”

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Contact: Dan Zielinski

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