Retirement Fairness for Charities and Educational Institutions Act of 2025
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.
[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 1013 Introduced in House (IH)]
<DOC>
119th CONGRESS
1st Session
H. R. 1013
To amend the Federal securities laws to enhance 403(b) plans, and for
other purposes.
_______________________________________________________________________
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.
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 2025''.
SEC. 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)''.
<all>
Introduced in House
Introduced in House
Referred to the House Committee on Financial Services.
Committee Consideration and Mark-up Session Held
Ordered to be Reported (Amended) by the Yeas and Nays: 43 - 8.
Reported (Amended) by the Committee on Financial Services. H. Rept. 119-390.
Reported (Amended) by the Committee on Financial Services. H. Rept. 119-390.
Placed on the Union Calendar, Calendar No. 340.
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