Jefferson Reporter

U.S. Senators Katie Britt, Raphael Warnock, Bill Cassidy, and Gary Peters have reintroduced the Retirement Fairness for Charities and Educational Institutions Act. This legislation aims to enhance investment options for 403(b) retirement plans, which are similar to 401(k) plans but specifically offered to employees of non-profit organizations such as public universities, hospitals, churches, and charities.

Senator Britt stated that the act "would level the playing field so more hardworking Americans can access retirement resources that best fit their needs." She emphasized that this bipartisan bill would help non-profit workers achieve long-term financial stability by allowing them access to the same investment options available in the private sector.

Senator Warnock highlighted the importance of financial security for retirees, particularly those who work in non-profits. He expressed pride in leading this bipartisan effort to provide equal opportunities for non-profit employees. "America’s retirees deserve the peace of mind that comes with financial security when they transition into retirement," he said.

Dr. Cassidy noted the need for equitable access to investment strategies between non-profit and private sector employees. He remarked on Social Security's insolvency issues and stressed giving Americans every tool possible to secure their retirement.

Senator Peters added that public service and non-profit employees deserve access to all available financial tools for planning their retirement. The legislation would allow those using a 403(b) plan to invest in collective investment trusts (CITs), thus achieving parity with other retirement plan participants.

The proposed act has garnered significant support from various organizations including the Alabama Association of Nonprofits, American Bankers Association, American Benefits Council, American Heart Association, Aon, Church Alliance, Great Gray, Insured Retirement Institute, Investment Company Institute, March of Dimes, MetLife, Mercer, Mission Square National Association of Insurance and Financial Advisors National Council of Nonprofits Nationwide Prudential SPARK Institute Stable Value Investment Association United Way Vanguard.

Brian Graff from the American Retirement Association voiced strong support: “ARA fully supports this legislation that will boost the retirement savings of hard-working employees at hospitals universities and other non-profit organizations.” He pointed out that under this bill over 15 million workers would gain access to lower-cost investments akin to those available in 401(k) plans.

The act proposes expanding retirement savings opportunities by allowing 403(b) plan participants to invest in CITs—a tax-exempt vehicle offering diversified pooled investments similar to mutual funds—thereby providing greater flexibility and potentially higher returns.

Under current regulations unlike 401(k) holders sponsors of 403(b) plans cannot use CITs as an investment option. This legislative change aims at creating parity between these two types of retirement savings plans benefiting millions employed by hospitals universities charities among others within nonprofit sectors.