Latest House bill that allows collective investment trusts in 403(b)s gets support from trade group
By Lynn Cavanaugh
June 30, 2025
Last month, the House Committee on Financial Services advanced the Retirement Fairness for Charities and Educational Institutions Act of 2025, which provides a “level playing field” between participants of 401(k)s and 403(b)s, said Rep. Frank Lucas. The bill would allow low-cost collective investment trusts (CITs) in 403(b) plans. The bill was the latest attempt to pass CIT legislation after Congress was unable to enact previous versions of this bill.
There have been prior attempts by Congress to pass similar CIT legislation, which follows unfinished business left over from the enactment of SECURE 2.0 in 2022, which amended the Internal Revenue Code to allow 403(b)s to invest in CITs, but changes needed under the securities law did not make it into the final bill when SECURE 2.0 was enacted.
Now, the National Association of Government Defined Contribution Administrators (NAGDCA) is applauding the House bill that would benefit the nation’s 15 million teachers, hospital workers, and nonprofit employees. “We heartily applaud Representative Frank Lucas and the House Committee on Financial Services for introducing and advancing this important bill,” stated NAGDCA Executive Director Matt Petersen.
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