Washington, DC – At today’s Financial Services Committee markup, the Retirement Fairness for Charities and Educational Institutions Act passed out of committee.
Representatives Frank D. Lucas (R-OK), Josh Gottheimer (D-NJ), Bill Foster (D-IL), and Andy Barr (R-KY) introduced H.R. 1013, the Retirement Fairness for Charities and Educational Institutions Act, in February of this year.
The bipartisan legislation ensures that teachers, charity employees, and other non-profit sector employees participating in 403(b) retirement plans have the same access to cost effective options that are available to other retirement plans, including 401(k) and 457(b) plans. This bill follows up on important steps taken under the Secure Act 2.0 Act to create parity for 403(b) plans.
Congressman Lucas spoke in support of the bill at today’s Financial Services Committee markup, which you can watch here.
“For too long, retirement options have unfairly disadvantaged public servants. While the required changes to our tax code for 403(b) plans have already been made, we now need to implement the necessary changes to securities law. Today, we took one step closer to making that a reality,” said Congressman Lucas. “Passing this bipartisan bill will allow for consistency across retirement plans and deliver a much needed solution to allow hardworking Americans’ retirement savings to thrive.”
“I’m proud to join my colleagues in leading the effort to ensure that nonprofit employees and educators have access to the same low-cost retirement investment options as their private sector counterparts,” said Congressman Foster. “By addressing these disparities, this legislation will level the playing field and help provide a secure financial future for those who dedicate their careers to serving others.”
“It’s already way too expensive to retire in New Jersey, and those who work tirelessly to serve our communities shouldn’t be penalized when they do. That’s why I’m proud to help lead the bipartisan Retirement Fairness for Charities and Educational Institutions Act to support our teachers, nurses, and non-profit workers by giving them more power over their pocketbooks,” said Congressman Gottheimer. “I will always fight so Jersey retirees can keep more of their hard earned dollars.”
“It is crucial that we provide employees of nonprofits and educational institutions with the same opportunities for retirement security as those in the private sector,” said Congressman Barr. “By allowing 403(b) plan participants access to collective investment trusts, we can enhance their investment options and promote financial stability for those who dedicate their careers to serving others.”
BACKGROUND:
Since the creation of 403(b) plans in 1958, there have been many changes to how we save for retirement – both in the law and in the overall economy.
The Retirement Fairness for Charities and Educational Institutions Act will allow 403(b) plan the ability to invest in collective investment trusts or CITs and insurance companies separate accounts.
This measure originated in Secure 2.0 Act in the 117th Congress, which passed out of the Ways and Means Committee unanimously. The Secure 2.0 Act – which ultimately became law – included the required changes to the tax code but not the necessary changes to securities law.
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