The bipartisan INVEST Act has passed the House of Representatives in a 302-123 vote. NAIFA supports the legislation to expand retirement-planning options for teachers, employees of nonprofit organizations, and others.
"NAIFA is pleased to see the House take bipartisan action to bolster the ability of more Americans to better prepare for retirement," said NAIFA CEO Kevin Mayeux, CAE. "The INVEST Act would give teachers, hospital workers, nonprofit employees, and others who have 403(b) plans access to expanded investment options, including annuity-linked products that provide guaranteed lifetime income. It would also take steps toward addressing elder financial exploitation and would remove unfair impediments that prevent expert investors who don't meet net-worth thresholds from taking advantage of some sophisticated investments."
Four sections of the bill are particularly noteworthy to financial professionals and their clients.
1. Key Provisions for the Retirement Fairness for Charities and Educational Institutions Act of 2025 (HR 1013):
- Unregistered Separate Accounts: Authorizes annuity options through unregistered insurance company separate accounts, broadening choices for nonprofit employees (like teachers, hospital staff).
- 403(b) Plan Parity: Aims to give 403(b) plans access to the same low-cost investment vehicles, such as CITs, that 401(k)s offer, including annuity-linked options for guaranteed income.
- Default Options: Removes barriers to including certain annuities as default investment options in retirement plans, providing a pathway to "pension-like" income.
- Increased Retirement Security: The Act helps workers in nonprofit and public sectors get access to guaranteed income streams for retirement.
- Expanded Choices: It allows plan sponsors to offer a wider range of investment solutions, including low-cost institutional funds and lifetime income products.
2. Key Provisions of the Senior Security Act (HR 1469):
- SEC Task Force: Creates a Senior Investor Task Force within the Securities and Exchange Commission (SEC) to investigate challenges and report to Congress on trends in senior investor protection.
- Task Force duties: Identify senior investor challenges (including cognitive decline), coordinate SEC efforts, and report to Congress.
- GAO Study: Directs the Government Accountability Office (GAO) to study and report on the economic impact and consequences of elder financial exploitation.
- Advocacy: NAIFA actively supports this legislation and similar efforts to shield seniors from fraud, viewing it as a core part of financial professionals' ethical duty.
- Focus on Prevention:NAIFA emphasizes protecting Main Street consumers, recognizing that investment fraud is a significant threat, and members are committed to this cause.
3. Key Provisions of the Fair Investment Opportunities for Professional Experts Act (HR 3394):
- Updating Outdated Rules: Current rules often exclude financially sophisticated individuals who lack high income or net worth but possess expertise, limiting their access to potentially high-growth private investments (like venture capital or private equity) and reducing capital available to small businesses. H.R. 3394 seeks to modernize accreditation to reflect actual financial acumen, aligning access with demonstrated capability rather than just wealth.
- Expand Accredited Investor Definition: The bill adds pathways to accreditation beyond income (>$200k/$300k joint) or net worth (>$1M), including:
- Professional Knowledge: Individuals with verifiable education or job experience in finance/investments, determined by the SEC or self-regulatory organizations (SROs).
- Professional Licenses/Registrations: Brokers or investment advisers in good standing with regulators.
- Promote Fairness: Aims to remove barriers for knowledgeable individuals excluded solely due to income/asset levels, fostering economic fairness.
- SEC Mandate: Requires the SEC to update regulations to match these changes and adjust thresholds for inflation periodically.
4. Key Provisions of the Fair Investment Opportunities for Professional Experts Act (HR3339):
Expanding accredited Investor eligibility
- Income and Net Worth Thresholds: These factors alone do not determine an individual’s sophistication or financial acumen.
- Additional pathways: Professional credentials, job experience, and examinations should be available for individuals to qualify for accredited investor status.
- Certification Exam:The SEC would establish an exam to prove financial understanding, allowing certified individuals to qualify as accredited investors.
- Broader Definition: It updates the outdated "accredited investor" definition, which currently favors the wealthy, to include those with demonstrated knowledge, opening private markets to more people.