Retirement Fairness for Charities and Educational Institutions Act of 2025 | ChamberLight
Bills · HR 1013
REPORTED· 119TH CONGRESS
House BillHR 1013Government employee pay, benefits, personnel managementReligion
Retirement Fairness for Charities and Educational Institutions Act of 2025
INTRO FEB 5· LAST ACTION NOV 28
READING
6MIN
COSPONSORS
24
READER REACTIONS0 TOTAL
NO VOTES YET · BE THE FIRST
Reported, not passed
LEGISLATIVE PROGRESS
STEP 3 / 8
Introduced
In Committee
Reported
Passed House
Passed Senate
Conference
To President
Became Law
WHAT THE BILL DOES
AI-written
Voters should care about this bill because it impacts how people working for schools, charities, and government agencies save for their retirement. If this bill becomes law, it could lead to more diverse and potentially lower-cost investment options being available in 403(b) plans, which are crucial for many public service and non-profit employees. This could improve the financial security of their retirement savings and potentially help their money grow more efficiently.
Conversely, if the bill doesn't become law, 403(b) plans will continue to operate under existing federal securities laws, which might limit the types of investment products available or increase the administrative costs for employers to offer them. The changes proposed by this bill aim to align 403(b) plans more closely with the regulatory treatment of other types of retirement plans, like 401(k)s, which could lead to more equitable retirement savings opportunities for those in the non-profit and public sectors.
KEY PROVISIONS
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PROVISION 01
Amends the Investment Company Act of 1940 to expand exemptions for certain 403(b) plans.
This allows more types of investment products, like collective investment trusts, to be offered in 403(b) plans without the extensive registration and oversight typically required for investment companies.
PROVISION 02
Amends the Securities Act of 1933 to expand exemptions for certain 403(b) plans.
This means that the offering of certain investment options in 403(b) plans can be done without formal registration with the Securities and Exchange Commission (SEC), reducing compliance costs for plan providers.
PROVISION 03
Amends the Securities Exchange Act of 1934 to expand exemptions for certain 403(b) plans.
This reduces the regulatory burden on the securities themselves when offered through qualifying 403(b) plans, streamlining the process for employers.
PROVISION 04
Establishes conditions for 403(b) plans to qualify for these expanded exemptions, including being subject to ERISA, having the employer act as a fiduciary for investment selection, or being a governmental plan.
These conditions ensure that even with reduced federal securities oversight, there are still mechanisms for participant protection and responsible management of the investment options.
Voters should care about this bill because it impacts how people working for schools, charities, and government agencies save for their retirement. If this bill becomes law, it could lead to more diverse and potentially lower-cost investment options being available in 403(b) plans, which are crucial for many public service and non-profit employees. This could improve the financial security of their retirement savings and potentially help their money grow more efficiently.
Conversely, if the bill doesn't become law, 403(b) plans will continue to operate under existing federal securities laws, which might limit the types of investment products available or increase the administrative costs for employers to offer them. The changes proposed by this bill aim to align 403(b) plans more closely with the regulatory treatment of other types of retirement plans, like 401(k)s, which could lead to more equitable retirement savings opportunities for those in the non-profit and public sectors.
KEY PROVISIONS
AI-extracted
high
Amends the Investment Company Act of 1940 to expand exemptions for certain 403(b) plans.
This allows more types of investment products, like collective investment trusts, to be offered in 403(b) plans without the extensive registration and oversight typically required for investment companies.
high
Amends the Securities Act of 1933 to expand exemptions for certain 403(b) plans.
This means that the offering of certain investment options in 403(b) plans can be done without formal registration with the Securities and Exchange Commission (SEC), reducing compliance costs for plan providers.
med
Amends the Securities Exchange Act of 1934 to expand exemptions for certain 403(b) plans.
This reduces the regulatory burden on the securities themselves when offered through qualifying 403(b) plans, streamlining the process for employers.
high
Establishes conditions for 403(b) plans to qualify for these expanded exemptions, including being subject to ERISA, having the employer act as a fiduciary for investment selection, or being a governmental plan.
These conditions ensure that even with reduced federal securities oversight, there are still mechanisms for participant protection and responsible management of the investment options.
GLOSSARY
AI-written
403(b) plans
Retirement plans offered by public schools, universities, and certain tax-exempt organizations (like charities and hospitals), similar to a 401(k) but for non-profit and public sector employees.
Investment Company Act of 1940
A federal law that regulates investment funds, such as mutual funds and collective investment trusts, to protect investors.
Securities Act of 1933
A federal law that requires companies to register their securities offerings with the government before selling them to the public, ensuring investors receive important information.
Securities Exchange Act of 1934
A federal law that governs the trading of securities in secondary markets (after they are first sold) and regulates stock exchanges and brokers.
ERISA (Employee Retirement Income Security Act of 1974)
A federal law that sets minimum standards for most voluntarily established retirement and health plans in private industry to protect individuals in these plans.
Fiduciary
A person or organization that acts on behalf of another person or persons, putting their clients' best interests ahead of their own, especially when managing money or assets.
ACTION TIMELINE
6 EVENTS
NOV 28, 25
Reported (Amended) by the Committee on Financial Services. H. Rept. 119-390.
COMMITTEE
NOV 28, 25
Placed on the Union Calendar, Calendar No. 340.
CALENDARS
MAY 20, 25
Committee Consideration and Mark-up Session Held
COMMITTEE
MAY 20, 25
Ordered to be Reported (Amended) by the Yeas and Nays: 43 - 8.
A retirement plan established or maintained by the U.S. government, any state or local government, or any agency or instrumentality of these governments.
Collective trust fund
An investment fund that combines money from multiple retirement plans, typically offered by banks or trust companies, often for institutional investors.
