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Congress·Reported·3 months ago

House Committee Advances Bill to Expand Low-Cost Investment Options for School and Nonprofit Retirement Plans

Also known as: Retirement Fairness for Charities and Educational Institutions Act of 2025

Legislative Progress

✓ Filed
Review
House
Senate
President

Impacts

Mixed Impacts(1)
Retiree
Neutral

Key Points

  • If you work for a school, college, hospital, or charity with a 403(b) plan, your plan could soon offer pooled investment funds like many 401(k)s use.
  • These pooled funds often charge lower fees than many mutual funds, so more of your money may stay invested for retirement.
  • Your employer would have to pick and watch the investment options and approve them before they are offered, especially for government-run plans.
  • The bill does not change your tax breaks or savings limits; your paycheck contributions and withdrawal rules stay the same.
  • More choices can help, but some pooled funds share less public information than mutual funds, so reviewing fees and results remains important.
Labor EmploymentConsumer ProtectionEducationEconomy

Milestones

4 milestones8 actions
Nov 28, 2025House

Placed on the Union Calendar, Calendar No. 340.

Nov 28, 2025House

Reported (Amended) by the Committee on Financial Services. H. Rept. 119-390.

Nov 28, 2025

Reported (Amended) by the Committee on Financial Services. H. Rept. 119-390.

May 20, 2025House

Ordered to be Reported (Amended) by the Yeas and Nays: 43 - 8.

May 20, 2025House

Committee Consideration and Mark-up Session Held

What Happens Next

Projected impacts based on AI analysis

3–6 months after enactment

Plan providers design new low-cost pooled investment menus for 403(b) plans and notify employers

Workers see notices about new funds and possible mapping from old options. Choices may be simpler and cheaper.

4–12 months after enactment

School districts and nonprofits review and approve each investment option before adding it

Participants gain an extra layer of quality control. Some plans will take longer to add options due to reviews.

6–12 months after enactment

Recordkeepers switch default funds to pooled versions and map old balances

You may be moved to a similar but cheaper fund without a public ticker. Expect a short blackout period during the change.

9–18 months after enactment

Public school 403(b) plans complete procurement and contract updates

Teachers and staff see the new lineup in their accounts, with clearer fees and fewer vendors.

12–24 months after enactment

Participants see lower annual fees reflected on year-end statements

More of your investment growth stays in your account, improving long-term retirement outcomes.

Related News

2 articles
PlanSponsor·3 months ago

House Passes Legislative Package Allowing CITs in 403(b) Retirement Plans

The House passed a bill bundling over 20 measures, including a provision to allow 403(b) plans to invest in collective investment trusts (CITs). The move aims to create parity between 401(k) and 403(b) plans, potentially lowering fees for educators and nonprofit employees.

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Bloomberg Law·9 months ago

Proposal Giving Teachers, Others Retirement Plan Parity Advances

Legislation modifying securities laws to extend 403(b) plans the same exemptions used by 401(k)s and the federal Thrift Savings Plan has advanced through the House Financial Services Committee. The bill aims to provide public servants with the same low-cost investment options as private workers.

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Source Information

Document Type

Congressional Bill

Official Title

Retirement Fairness for Charities and Educational Institutions Act of 2025

Bill NumberHR 1013
Congress119th Congress
ChamberHouse of Representatives
Latest ActionPlaced on the Union Calendar, Calendar No. 340.

Sponsor

Cosponsors

(24)
D: 19R: 5

Analysis generated by AI. While we strive for accuracy, this should not be considered legal or professional advice. Always verify information with official government sources.