FOR IMMEDIATE RELEASE
Lexington, KY, April 21, 2021—The National Association of Government Defined Contribution Administrators (NAGDCA) today announced its support for the bipartisan Public Service Retirement Fairness Act re-introduced by Congressman Jimmy Panetta (D-CA). NAGDCA is the premier professional association for plan administrators and services providers of government-sponsored defined contribution retirement plans.
The Act calls for an amendment to current law to ensure public sector and non-profit defined contribution retirement plans have access to the same low-cost investments afforded private sector, for-profit retirement plans. It was originally introduced in March 2020.
“The National Association of Government Defined Contribution Administrators heartily endorses the bipartisan Public Service Retirement Fairness Act re-introduced by Congressman Panetta and his fellow cosponsors,” stated NAGDCA Executive Director Matt Petersen. “Lack of access to the same breadth of investment structures long available to other types of public sector DC plans is costing 403(b) plan participants—which include the nation’s 10 million teachers—potentially thousands of dollars in retirement savings due to higher investment expenses and reduced returns,” Petersen concluded
The Public Service Retirement Fairness Act seeks to amend Internal Revenue Code (IRC) Section 403(b) to permit inclusion of collective investment trusts (CITs) as investment vehicles in 403(b) retirement plans. It is a companion to Section 117—403(b) Investment Expansion—of the Retirement Security and Savings Act (S. 1431) introduced by Senators Rob Portman (R-OH) and Ben Cardin (D-MD) in May 2019. It is cosponsored by Ron Estes (R-KS), Brendan Boyle (D-PA), Darin LaHood (R-IL), Madeleine Dean (D-PA), and Andy Barr (R-KY).
In addition to allowing inclusion of CITs in 403(b) plans, the Public Service Retirement Fairness Act (consonant with S. 1431, Section 117) calls for corresponding changes to the Investment Company Act of 1940, the Securities Act of 1933, and the Securities Exchange Act of 1934, as well as adjustment to related rules and regulations covering CITs and separate accounts (such as exemptions from commodity pool status under CFTC rules and regulations), and regulations that otherwise restrict investments for CITs, such as QIB rules.
NAGDCA has advocated for the expansion of allowable investment vehicles in 403(b) retirement plans in support of plan sponsors and participants since 2018.
NAGDCA provides education, information, and training in all aspects of public plan administration to support members in creating plans that enable secure retirement outcomes for their participants. To encourage a grassroots movement for societal change around retirement, NAGDCA conceived and introduced National Retirement Security Week to Congress. Resolution for the creation of National Retirement Security Week—now National Retirement Security Month—was passed by the Senate in 2006 and annually receives unanimous bipartisan resolution supporting its goals and ideals. To learn more about NAGDCA, visit https://www.nagdca.org/.
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Robin Schoen Public Relations