HR 1013
Retirement Fairness for Charities and Educational Institutions Act of 2025
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Bill overview
The Retirement Fairness for Charities and Educational Institutions Act of 2025 aims to expand investment options for 403(b) retirement plans offered to employees of charities, educational institutions, and churches. It modifies securities laws to allow these plans to invest in collective investment trusts and insurance company separate accounts, increasing flexibility for participants. The bill also clarifies the definition of qualifying plans to include certain governmental plans and establishes fiduciary responsibilities for plan sponsors.
Key provisions
- Allows 403(b) plans to invest in collective investment trusts.
- Permits investments in insurance company separate accounts.
- Expands the definition of qualifying 403(b) plans to include certain governmental plans.
- Requires employers offering 403(b) plans to act as fiduciaries regarding investment selection.
- Establishes a review process for investment alternatives offered under qualifying plans.
Who is affected
- Charities
- Educational Institutions
- Employees of charities and educational institutions
- Retirement Plan Sponsors (employers, fiduciaries)
- Investors in 403(b) plans
Notable changes
- Broadens the types of investments available to 403(b) plans.
- Clarifies fiduciary responsibilities for plan sponsors.
- Defines specific criteria for qualifying plans, including governmental plans and employer fiduciary roles.
Sponsors
Official sponsors from legislative records.
Primary sponsor
Cosponsors
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119th CONGRESS — 1st Session
H. R. 1013
IN THE HOUSE OF REPRESENTATIVES
A BILL
To amend the Federal securities laws to enhance 403(b) plans, and for other purposes.
This Act may be cited as the Retirement Fairness for Charities and Educational Institutions Act of 2025
.
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:
Any—
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;
custodial account meeting the requirements of section 403(b)(7) of such Code;
governmental plan described in section 3(a)(2)(C) of the Securities Act of 1933;
collective trust fund maintained by a bank consisting solely of assets of one or more—
trusts described in subparagraph (A);
government plans described in subparagraph (C);
church plans, companies, or accounts that are excluded from the definition of an investment company under paragraph (14) of this subsection; or
plans which meet the requirements of section 403(b) of the Internal Revenue Code of 1986—
if—
such plan is subject to title I of the Employee Retirement Income Security Act of 1974 (29 U.S.C. 1001 et seq.);
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
such plan is a governmental plan (as defined in section 414(d) of such Code); and
separate account the assets of which are derived solely from—
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;
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;
advances made by an insurance company in connection with the operation of such separate account; and
contributions to a plan described in clause (iii) or (iv) of subparagraph (D).
Section 3(a)(2) of the Securities Act of 1933 (15 U.S.C. 77c(a)(2)) is amended—
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)
;
by striking (C), or (D)
and inserting (C), (D), or (E)
; and
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
.
Section 3(a)(12)(C) of the Securities Exchange Act of 1934 (15 U.S.C. 78c(a)(12)(C)) is amended—
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)
;
by striking (ii), or (iii)
and inserting (ii), (iii), or (iv)
; and
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
.
or (iii)and inserting
(iii) a plan described in section 3(a)(12)(C)(iv) of this Act, or (iv).