Making Retirement Savings Fair for America’s
Non-Profit Workers
The retirement savings landscape is fragmented and unfair.
Americans, depending on the kind of job or retirement plan they have, do not have consistent access to the same safe and low-cost investment options that can help them meet their goals. RetirementFairness.com is a resource to educate workers, retirees, employers and advisors about their options.
Did you know?
Currently, 14.5 million non-profit workers with 403(b) plans cannot invest in collective investment trusts (CITs) despite near universal support for access to them. CITs are pooled investment vehicles that, while similar to mutual funds, are maintained by fiduciary trustees under laws and regulations focused on the retirement market. They have become a cornerstone of private sector and certain governmental workplace retirement plans because they are safe, secure and cost-effective investment vehicles that can help workers maximize their savings. America’s hard-working public-school teachers, hospital employees, charity workers and other non-profit workers deserve consistent access to the same tools to help reach their retirement goals that their private sector peers have for decades.
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To level the playing field, federal lawmakers have introduced the Retirement Fairness for Charities and Educational Institutions Act, an essential piece of legislation with broad bipartisan support.¹ The bill, which would allow America’s non-profit 403(b) plans to invest in CITs, must be passed now because the sooner employees of non-profit organizations have access to CITs in 403(b) plans, the more significant their compounded cost-savings could be.
Why now?
Millions of Americans save for retirement using investment accounts in “defined contribution” retirement plans sponsored by their employers. These include 401(k) plans, which are for private sector workers, and 457(b) and 403(b) plans, which are for governmental and non-profit workers.
Today, 401(k) and 457(b) plans can invest in CITs. Due to a gap in the law, 403(b) plans cannot.
Support the Retirement Fairness for Charities and Educational Institutions Act
Non-profit employers, employees and groups that represent them, industry experts and leading academics all back the Retirement Fairness for Charities and Educational Institutions Act because they know it is essential for workers who save using 403(b) plans. Learn more about why they each support the Retirement Fairness for Charities and Educational Institutions Act.
What are CITs?
CITs are strictly regulated investment vehicles that are available only to tax-qualified retirement plans that are overseen by plan fiduciaries or other responsible professionals. Unlike other investment products, such as mutual funds, CITs cannot be offered outside of retirement plans or directly to individual retail investors that might buy them without professional representation or oversight.
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