The U.S. House of Representatives passed a bill this week that expands retirement investment options for people working in public schools, community health clinics, nonprofit organizations, and churches who have 403(b) plans.
H.R. 1013, the Retirement Fairness for Charities and Educational Institutions Act, was approved in the House by a vote of 295-128.
The bill, sponsored by Rep. Frank Lucas (R-OK), would permit 403(b) plans to invest in Collective Investment Trusts (CITs) and insurance company separate accounts. These investment options are already available through 401(k) plans.
“Hardworking public servants with 403(b) plans should have access to the same investment options available to private sector plans so they can better prepare for retirement and provide for their families. I am grateful that the House has passed the Retirement Fairness for Charities and Educational Institutions Act, and I urge the Senate to swiftly take up and pass this bill to send it to President Trump’s desk,” Lucas said.
Lucas is the chairman of the House Task Force on Monetary Policy, Treasury Market Resilience, and Economic Prosperity.
“Public school teachers, first responders, and nonprofit employees dedicate their careers to serving others, yet outdated laws limit their retirement investment options and can leave them paying higher fees. H.R. 1013 fixes this problem by giving these workers access to the same cost-effective options available in 401(k) plans. I thank Capital Markets Subcommittee Chairman Ann Wagner for her longstanding leadership and Congressman Frank Lucas for his work to advance this bipartisan bill,” Rep. French Hill (R-AR), chairman of the House Financial Services Committee, said.