What is the Retirement Fairness for Charities and Educational Institutions Act?

In simple terms, the Retirement Fairness for Charities and Educational Institutions Act (S. 4917) is a bill that would allow 403(b) plans to include Collective Investment Trusts (CITs) as an investment option.

Currently, CITs are available only to 401(k) plans, not the 403(b) plans commonly offered by non-profit employers. As a result, there are 14.5 million teachers, nurses, and non-profit employees who can’t take advantage of the same retirement benefits that private sector workers receive through their 401(k) plans. The Act would allow CITs in 403(b) plans so non-profit employees would have access to the same low-cost investment choices as their counterparts in the for-profit sector and be able to maximize their retirement savings.

The House version of the bill passed earlier this year. It is now moving on to the Senate (S. 4917). We encourage you to visit the American Retirement Association website to learn more about the Act.  You may also choose to show your support by selecting the Take Action tab.

The information provided in this blog post is for informational purposes only and should not be considered as financial, legal, or professional advice. Always consult with a qualified professional for specific advice tailored to your individual circumstances.