Bipartisan legislation to allow 403(b) retirement savings plans to invest in collective investment trusts (CITs) has been introduced in both the House and Senate. The legislation would amend securities laws to allow for 403(b) CIT investments. Retirement law was amended to allow these CIT investments in SECURE 2.0, but efforts to expand the CIT investment authority to include securities laws fell short at the time.

On February 5, Reps. 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. On the same day Sen. Katie Britt (R-AL) introduced the companion bill, S.424, in the Senate.

Prospects: Enactment of H.R.1013/S.424 is a high priority for many in the retirement savings community, but the effort faces challenges. The legislation will be but a blip in the high-stakes reconciliation tax bill debate, and some fear pushing it too hard could put other retirement savings rules at risk as lawmakers hunt for offsets. However, the measure passed the House (but not the Senate) last Congress, and it does have bipartisan support. So the legislation does have a chance for enactment.

NAIFA Staff Contact: Jayne Fitzgerald – Director – Government Relations, at jfitzgerald@naifa.org.