Equalizing Investment Access for Non-Profit Personnel
House Republican leadership brought forward legislation on November 11. The measure, designated H.R. 1013, permits 403(b) retirement plans to invest in lower-cost collective investment trusts. Millions of educators, hospital workers, and first responders stand to gain broader investment flexibility. The office of the House Majority Leader released floor scheduling announcements prioritizing the Retirement Fairness for Charities and Educational Institutions Act of 2025. Authored by Representative Frank Lucas of Oklahoma, the bipartisan bill amends longstanding federal securities statutes; the House Financial Services Committee championed the measure.
He added: "Current securities laws restrict workers with 403(b) plans from accessing certain lower-cost investment options available to 401(k) plans." Unlike private-sector 401(k) plans, current federal securities rules prohibit 403(b) participants from allocating balances into collective investment trusts. The bill amends statutory exemption provisions under the Securities Act of 1933 and the Investment Company Act of 1940; the Financial Services Committee approved the legislation with overwhelming bipartisan support earlier this session.
The National Education Association and healthcare worker unions endorsed the measure, urging Congress to enact the provisions before year-end. The Investment Company Institute and financial services trade groups also backed the modernization effort. The House is scheduled to conduct a roll-call vote early next week.
Upon presidential signature, over 14 million non-profit workers across charity organizations, public school districts, and community hospital systems will gain direct access to modern low-fee trust instruments. When Congress created 403(b) accounts under the Employee Retirement Income Security Act (ERISA) framework, collective investment trusts were primarily reserved for defined benefit pension plans; Financial industry data confirms that average collective investment trust fee structures operate significantly below traditional mutual fund expense ratios.
