Why Now?
The sooner workers can access CITs, the more they can save and earn compounding interest. That could mean tens or even hundreds of thousands more dollars by the time they retire.
The adoption of CITs in 401(k) plans hit an all-time high in 2024—they are now the most prevalent investment vehicle in defined contribution plans, surpassing mutual funds—because they are low-cost options that keep more money in the pockets of savers and retirees, while maintaining the same transparency and the same, or better, retirement protections people have come to expect from legacy products like mutual funds.²
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Allowing some defined contribution plans to invest in CITs while others cannot is deeply unfair and may artificially limit 403(b) participants and beneficiaries’ ability to effectively save for their secure retirement.
In 2022, Congress acknowledged this problem and passed the Securing a Strong Retirement Act (SECURE 2.0), which amended tax laws to permit 403(b) plans to invest in CITs. Three years later, 403(b) plans still cannot access CITs because corresponding changes to the securities law are needed. A bipartisan group of lawmakers have introduced the Retirement Fairness for Charities and Educational Institutions Act to accomplish that. This bipartisan bill is a long-overdue fix that levels the playing field for nonprofit workers so that regardless of what retirement savings plan they use – a 457(b) or a 403(b) – they can invest in CITs.
The sooner workers can access CITs, the more they can save and earn compounding interest. That could mean tens or even hundreds of thousands more dollars by the time they retire.
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