The Retirement Fairness for Charities and Educational Institutions Act gives non-profit employees access to lower-cost investment plans

The bill would create parity between 403(b) and 401(k) retirement savings plans, benefitting over 15 million hardworking employees at hospitals, universities, charities, and other non-profit organizations

Senator Reverend Warnock: “Every hardworking American retiree deserves financial security, especially those who dedicate their lives to serving their country and communities. But too many folks still struggle to save up and prepare for retirement in our rapidly evolving economy”

Washington, D.C. – Today, U.S. Senators Reverend Raphael Warnock (D-GA), Gary Peters (D-MI), Katie Britt (R-AL), and Dr. Bill Cassidy (R-LA) introduced the Retirement Fairness for Charities and Educational Institutions Act to enhance investment options for 403(b) retirement plans by giving non-profit employees access to the same retirement investment opportunities private sector employees have, and in turn, help expand financial security for service-oriented Georgians pursuing careers in health care, education, social work, and more. 403(b) plans are a type of retirement savings plan, like a 401(k), offered to employees of non-profit organizations, like public universities, community-oriented hospitals, churches, and charities.

“Every hardworking American retiree deserves financial security, especially those who dedicate their lives to serving their country and communities. But too many folks still struggle to save up and prepare for retirement in our rapidly evolving economy,” said Senator Reverend Warnock. “I’m championing the Retirement Fairness for Charities and Educational Institutions Act to give non-profit employees access to the same retirement investment opportunities private sector employees have. This bipartisan bill will help ensure more workers can retire with dignity.”

The Retirement Fairness for Charities and Educational Institutions Act would expand retirement savings opportunities for non-profit employees by allowing 403(b) plan participants to invest in collective investment trusts (CITs). A CIT is a tax-exempt investment vehicle that provides a diversified, pooled investment option—similar to a mutual fund.  Under current law, unlike 401(k) holders, 403(b) plan sponsors are not able to use this stable, lower-cost investment option in their plan. This legislation would create parity between 403(b) and 401(k) retirement savings plans, benefitting over 15 million hardworking employees at hospitals, universities, charities, and other non-profit organizations.

The Retirement Fairness for Charities and Educational Institutions Act has received significant support, including the American Retirement Association, Investment Company Institute, American Heart Association, American Council of Life Insurers, Habitat for Humanity, National Council of Nonprofits, Council on Foundations, Lutheran Services of America, United Way, and Securities Industry and Financial Markets Association.

Read the full bill text HERE.

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