Passage of bill anticipated to enhance performance of 403(b) plans serving nation’s 15 million teachers, hospital workers, and nonprofit employees
FOR IMMEDIATE RELEASE
Lexington, KY, May 22, 2025—The National Association of Government Defined Contribution Administrators applauded the House Financial Services Committee for advancing a bill to include performance-enhancing CITs in 403(b) plans. NAGDCA is the premier professional association for plan administrators and services providers of government-sponsored defined contribution retirement plans.
On Tuesday, May 20, 2025, the U.S. House Committee on Financial Services voted 43 to 8 to advance the Retirement Fairness for Charities and Educational Institutions Act of 2025 (H.R. 1013). H.R. 1013 would allow 403(b) plans to invest in collective investment trusts (CITs). According to reporting, Representative Frank Lucas (R-OK), introduced H.R. 1013 in February as a means of providing a “level playing field” between participants of 401(k) and 403(b) plans by allowing nonprofit workers to invest in CITs.
“We heartily applaud Representative Frank Lucas and the House Committee on Financial Services for introducing and advancing this important bill,” stated NAGDCA Executive Director Matt Petersen. “NAGDCA has been a long-time proponent of including CITs in 403(b) plans, given their lower-cost basis than that of mutual funds and annuities, which, under current law are permitted in private sector 401(k) plans and all other defined contribution retirement plans other than governmental 403(b) plans.
“Governmental 403(b) plans offer those workers who are the backbone of our society—teachers, healthcare workers, and other public servants—access to increasingly important supplemental savings vital to their overall retirement security, and they deserve access to all options to help these retirement savings grow as much as possible. CITs offer a sound investment for public sector employees and we thank you for advancing this important legislation,” Matt concluded.
ABOUT NAGDCA
NAGDCA is the premier professional association for plan administrators and services providers of government-sponsored defined contribution retirement plans. NAGDCA members include 270 plan sponsors representing 15,000 governments in 49 states. Participants come from every level of state, territorial, and local government, including counties, cities, public safety agencies, school districts, transportation, and utilities. NAGDCA’s members administer governmental deferred compensation and defined contribution plans, including Section 457(b), 401(k), 401(a), and 403(b) plans. To learn more about NAGDCA, visit https://www.nagdca.org/.
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