Dear NAGDCA Members,
As we close 2025, I wanted to spend a few moments reflecting on a successful year and looking ahead to what’s next.
It was wonderful to see so many of you engage with us this year. In 2025, we recorded our highest government membership ever, our highest sponsorship support ever, and our highest annual conference attendance since 2019. We had four government members run for the Executive Board, four industry members run for the Industry Committee, and more volunteers for committees than we could handle (if you we weren’t able to fit you in this year, please try again next year). We were heartened to see so many of you take an active role in the organization, and we hope you made valuable connections throughout the industry.
So, what’s next?
Looking ahead, our focus for 2026 is very simple: we want to build off our successes and produce high quality content and connections for you at a pace that matches the rate of change in the industry. This is a high bar. As you know, the industry is evolving at a clip unlike anything in recent memory. Technology, vendor consolidation, access to new investment products, and changing regulations are just a few dynamic forces that will make your job more challenging.
Our job is to make your job easier, and we plan to do that by providing foundational information through our industry guides, PRRL research, thought leadership, and of course, our annual conference. We are also excited to roll out our formal education program toward the end of next year. In short, while we feel great about the progress of the organization in 2025, we feel like we are just getting started in providing value for your membership. We hope you are as excited about the future as we are.
As always, thank you for your membership, your sponsorship, and your partnership. We look forward to working with you again in the coming year.
All the Best,
Matt Petersen
Executive Director
House Passes Legislation to Allow 403(b)s to Invest in CITs
On December 11, the House of Representatives passed legislation that, among other things, would permit 403(b) plans to invest in collective investment trusts (“CITs”). CITs are pooled investment vehicles maintained by banks intended for institutional investors. Pensions and 401(k) plan fiduciaries sometimes choose CITs because the funds can help reduce investment expenses. However, the securities laws currently prohibit 403(b) plans from investing CITs.
The provision to allow 403(b) plans to invest in CITs was included in the INVEST Act (H.R. 3383), which passed the House with a bipartisan vote of 302 to 123. The provision was originally introduced by Representatives Lucas (R-OK), Gottheimer (D-NJ), Foster (D-IL), and Barr (R-KY) as the standalone Retirement Fairness for Charities and Educational Institutions (H.R. 1013).
The bill was approved by the House Financial Services Committee by a vote of 43 to 8 and reported to the full House on June 25, 2025. It was then bundled together with other bipartisan financial services legislation in the INVEST Act.
The CIT provision would amend the Investment Company Act of 1940, the Securities Act of 1933, and the Securities Exchange Act of 1934 to specifically permit 403(b)s to invest in CITs. However, it is limited to 403(b) plans that are subject to ERISA, have a designated fiduciary, or are sponsored by a governmental entity. The SECURE 2.0 Act of 2022 previously amended the Internal Revenue Code to clarify that a 403(b) investment would not negatively affect the CIT’s tax-exempt status.
The INVEST Act has been sent to the Senate for consideration and referred to the Senate Banking Committee. At this point, it is not clear whether the Senate will take up the full bill, but Banking Committee leadership has expressed an interest in potentially holding hearings early next year.
NAGDCA’s Top Resources of 2025
In 2025, NAGDCA delivered timely, practical, and highly sought-after resources to support public sector DC plan sponsors. As the year comes to a close, this roundup highlights the content members accessed most – reflecting the topics and tools making the biggest impact across the community.
Most Downloaded – Governance Best Practice Guide
The go-to guide for plan governance, offering clear best practices to strengthen oversight, fiduciary processes, and long-term plan success.
Most Viewed – Connect Conversation: Understanding Stable Value
One of this year’s most-watched conversations, featuring expert insights into stable value fundamentals, current market considerations, and what plan sponsors need to know.
Most Visited Web Page – SECURE 2.0 Resources for Governmental Plans
A top destination for members navigating SECURE 2.0, bringing together trusted guidance, updates, and implementation considerations in one place.
These standout resources showcase how NAGDCA continues to lead on the issues that matter most to public sector DC plans.
Holiday Office Closure
NAGDCA Headquarters will be closed in observance of the holidays from December 24 through January 2. During this time, staff will have limited access to email. Regular operations will resume on Monday, January 5, and staff will respond to messages as soon as possible upon return.
Wishing you a safe and happy holiday season and a wonderful start to the new year.