Washington, DC – Representatives Frank 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 of 2025.
The 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.
“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,” said Congressman Lucas. “This bipartisan bill aims to do exactly that and will allow for much needed consistency across retirement plans. Hardworking Americans deserve solutions like this to see their retirement savings thrive.”
“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 reintroduce 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.”
“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 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.
Click here to view the full bill text of H.R. 1013.
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