03/31/2020 | Press release | Distributed by Public on 03/31/2020 16:43
March 31, 2020
On March 12, 2020, Rep. Jimmy Panetta (D-CA) introduced the Public Service Retirement Fairness Act to permit 403(b) plans to invest in Collective Investment Trusts (CITs). Rep. Panetta was joined in introducing the bill by a bipartisan group of House Ways and Means Committee members: Rep. Ron Estes (R-KS), Rep. Brendan Boyle (D-PA), Rep. Darin LaHood (R-IL) along with two bipartisan members of the House Financial Services Committee: Rep. Madeleine Dean (D-PA) and Rep. Andy Barr (R-KY).
The bill is an essentially identical House companion to a provision in Sen. Rob Portman's (R-OH) and Sen. Ben Cardin's (D-MD) Retirement Security and Savings Act (S. 1431) introduced in 2019 in the Senate.
Unlike other defined contribution plans, federal law precludes 403(b) plans (the most common defined contribution plan for public school teachers and staff and prevalent in the private sector nonprofit education and health care industries) from investing in CITs. CITs are generally provided at a lower-cost than registered mutual funds.
ICMA-RC supports the passage of the Public Service Retirement Fairness Act and has been actively meeting with key Congressional members and staff to level the playing field for participants in a 403(b) plan.
We will continue to advocate on efforts to support plan sponsors and employees on this important matter. If you support offering teachers and other education healthcare and not-for-profit employees the opportunity to invest in lower-cost CITs, please contact your local ICMA-RC representative.
A copy of the introduced bill is attached here.