Jefferson Reporter

U.S. Senators Katie Britt, Raphael Warnock, Bill Cassidy, and Gary Peters have introduced S. 4917, the Retirement Fairness for Charities and Educational Institutions Act. This legislation aims to enhance investment options for 403(b) retirement plans, which are offered to employees of non-profit organizations such as public universities, hospitals, churches, and charities.

“Americans serving in the non-profit sector should have the ability to access retirement resources that fit their needs,” said Senator Britt. “Through the Retirement Fairness for Charities and Educational Institutions Act, Americans in the non-profit sector would be able to access the same investment options available to those in the private sector. It levels the playing field so that more hardworking Americans can access retirement sooner.”

Senator Warnock added, “Every hardworking American retiree deserves financial security, especially those who dedicate their lives to serving their country and communities. But too many folks still struggle to save up and prepare for retirement in our rapidly evolving economy. I’m championing the Retirement Fairness for Charities and Educational Institutions Act to give non-profit employees access to the same retirement investment opportunities private sector employees have. This bipartisan bill will help ensure more workers can retire with dignity.”

“Our bill allows non-profit employees’ retirement plans to have the same access to investment strategies as private sector employees,” said Dr. Cassidy. “With Social Security going insolvent in nine years, American workers need every tool available to make retirement easier, not harder.”

Senator Peters emphasized that “hard-working public service employees like teachers, hospital workers, charity and non-profit employees deserve access to all available financial tools that can help them plan for retirement.” He continued by stating that this legislation would provide 403(b) plan participants with an equal opportunity by allowing them to invest in collective investment trusts (CITs).

The act has garnered support from several organizations including the American Retirement Association, Investment Company Institute, American Heart Association, American Council of Life Insurers, Habitat for Humanity, National Council of Nonprofits, Council on Foundations, Lutheran Services of America, United Way, and Securities Industry and Financial Markets Association.

The proposed legislation seeks to expand retirement savings opportunities by allowing 403(b) plan participants to invest in CITs—a tax-exempt investment vehicle providing a diversified pooled option similar to mutual funds. Currently under law 403(b) plan sponsors cannot use this stable lower-cost option unlike their 401(k) counterparts. The act aims at creating parity between these two types of plans benefitting over 15 million employees at various non-profits.