Bill to Expand 403(b) Plan Menus With CITs Lands in Senate

A bipartisan group of U.S. Senators has introduced a bill that would allow 403(b) retirement plans to invest in collective investment trusts (CITs).

Dubbed the “Retirement Fairness for Charities and Educational Institutions Act,” the legislation mirrors popular parts of a broader House bill that passed the lower chamber in March.

Sponsors of the Senate version of the legislation include Sens. Katie Britt, R-Ala.; Raphael Warnock, D-Ga.; Gary Peters, D-Mich.; and Bill Cassidy, R-La. The House bill also has four primary sponsors in Rep. Frank Lucas, R-Okla.; Rep. Andy Barr, R-Ky.; Rep. Bill Foster, D-Ill., and Rep. Josh Gottheimer, D-N.J.

As the bill’s name indicates, 403(b) plans are commonly used by charities, educational institutions and other non-profits. The U.S. Department of Labor reports that there are about 9.9 million participants in 403(b)s with a combined $1.3 trillion in assets — not including participants in certain public-sector plans that do not report to the DOL.