Collective investment trusts (CITs) have become increasingly common in defined contribution plans, yet many plan sponsors and retirement professionals may still be unfamiliar with how they work and how they compare with mutual funds.
In the latest Connect Conversation, NAGDCA Executive Director Matt Petersen sits down with Jason Levy, Deputy General Counsel and Head of Retirement Policy at Great Gray Trust Company, LLC, to break down the fundamentals of CITs and what public sector plan sponsors should know when considering them as part of an investment lineup.
The conversation explores the differences between CITs and mutual funds, including their regulatory structures, potential cost savings and investor protections. Jason also discusses how reduced investment minimums have made CITs accessible to a much broader range of plans and offers considerations for sponsors evaluating CITs, including fee classes and the process for adding a CIT to a plan lineup.
The conversation also touches on NAGDCA’s ongoing efforts to expand access to CITs for eligible 403(b) plans and why broader access could help plans pursue lower-cost investment options.
Click below to watch the episode or listen wherever you get your podcasts.