Us Congress 2023-2024 Regular Session

Us Congress Senate Bill SB4917 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1	II
2	2	118THCONGRESS
3	3	2
4	4	DSESSION S. 4917
5	5	To amend the Federal securities laws to enhance 403(b) plans, and for
6	6	other purposes.
7	7	IN THE SENATE OF THE UNITED STATES
8	8	JULY31, 2024
9	9	Mrs. B
10	10	RITT(for herself, Mr. PETERS, Mr. CASSIDY, and Mr. WARNOCK) in-
11	11	troduced the following bill; which was read twice and referred to the Com-
12	12	mittee on Banking, Housing, and Urban Affairs
13	13	A BILL
14	14	To amend the Federal securities laws to enhance 403(b)
15	15	plans, and for other purposes.
16	16	Be it enacted by the Senate and House of Representa-1
17	17	tives of the United States of America in Congress assembled, 2
18	18	SECTION 1. SHORT TITLE. 3
19	19	This Act may be cited as the ‘‘Retirement Fairness 4
20	20	for Charities and Educational Institutions Act of 2024’’. 5
21	21	SEC. 2. ENHANCEMENT OF 403(B) PLANS. 6
22	22	(a) A
23	23	MENDMENTS TO THE INVESTMENTCOMPANY 7
24	24	A
25	25	CT OF1940.—Section 3(c)(11) of the Investment Com-8
26	26	pany Act of 1940 (15 U.S.C. 80a–3(c)(11)) is amended 9
27	27	to read as follows: 10
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30	30	•S 4917 IS
31	31	‘‘(11) Any— 1
32	32	‘‘(A) employee’s stock bonus, pension, or 2
33	33	profit-sharing trust which meets the require-3
34	34	ments for qualification under section 401 of the 4
35	35	Internal Revenue Code of 1986; 5
36	36	‘‘(B) custodial account meeting the re-6
37	37	quirements of section 403(b)(7) of such Code; 7
38	38	‘‘(C) governmental plan described in sec-8
39	39	tion 3(a)(2)(C) of the Securities Act of 1933 9
40	40	(15 U.S.C. 77c(a)(2)(C)); 10
41	41	‘‘(D) collective trust fund maintained by a 11
42	42	bank consisting solely of assets of one or 12
43	43	more— 13
44	44	‘‘(i) trusts described in subparagraph 14
45	45	(A); 15
46	46	‘‘(ii) government plans described in 16
47	47	subparagraph (C); 17
48	48	‘‘(iii) church plans, companies, or ac-18
49	49	counts that are excluded from the defini-19
50	50	tion of an investment company under para-20
51	51	graph (14) of this subsection; or 21
52	52	‘‘(iv) plans that meet the require-22
53	53	ments of section 403(b) of the Internal 23
54	54	Revenue Code of 1986— 24
55	55	‘‘(I) if— 25
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58	58	•S 4917 IS
59	59	‘‘(aa) such plan is subject to 1
60	60	title I of the Employee Retire-2
61	61	ment Income Security Act of 3
62	62	1974 (29 U.S.C. 1001 et seq.); 4
63	63	‘‘(bb) any employer making 5
64	64	such plan available agrees to 6
65	65	serve as a fiduciary for the plan 7
66	66	with respect to the selection of 8
67	67	the plan’s investments among 9
68	68	which participants can choose; or 10
69	69	‘‘(cc) such plan is a govern-11
70	70	mental plan (as defined in sec-12
71	71	tion 414(d) of such Code); and 13
72	72	‘‘(II) if the employer, a fiduciary 14
73	73	of the plan, or another person acting 15
74	74	on behalf of the employer reviews and 16
75	75	approves each investment described 17
76	76	under subclause (I)(bb) prior to the 18
77	77	investment being offered to partici-19
78	78	pants in the plan; or 20
79	79	‘‘(E) separate account the assets of which 21
80	80	are derived solely from— 22
81	81	‘‘(i) contributions under pension or 23
82	82	profit-sharing plans which meet the re-24
83	83	quirements of section 401 of the Internal 25
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86	86	•S 4917 IS
87	87	Revenue Code of 1986 or the requirements 1
88	88	for deduction of the employer’s contribu-2
89	89	tion under section 404(a)(2) of such Code; 3
90	90	‘‘(ii) contributions under govern-4
91	91	mental plans in connection with which in-5
92	92	terests, participations, or securities are ex-6
93	93	empted from the registration provisions of 7
94	94	section 5 of the Securities Act of 1933 (15 8
95	95	U.S.C. 77e) by section 3(a)(2)(C) of such 9
96	96	Act (15 U.S.C. 77c(a)(2)(C)); 10
97	97	‘‘(iii) advances made by an insurance 11
98	98	company in connection with the operation 12
99	99	of such separate account; and 13
100	100	‘‘(iv) contributions to a plan described 14
101	101	in subparagraph (D)(iv).’’. 15
102	102	(b) A
103	103	MENDMENTS TO THE SECURITIESACT OF 16
104	104	1933.—Section 3(a)(2) of the Securities Act of 1933 (15 17
105	105	U.S.C. 77c(a)(2)) is amended— 18
106	106	(1) by striking ‘‘or (D) a’’ and inserting ‘‘(D) 19
107	107	a plan which meets the requirements of section 20
108	108	403(b) of such Code (i) if (I) such plan is subject 21
109	109	to title I of the Employee Retirement Income Secu-22
110	110	rity Act of 1974 (29 U.S.C. 1001 et seq.), (II) any 23
111	111	employer making such plan available agrees to serve 24
112	112	as a fiduciary for the plan with respect to the selec-25
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115	115	•S 4917 IS
116	116	tion of the plan’s investments among which partici-1
117	117	pants can choose, or (III) such plan is a govern-2
118	118	mental plan (as defined in section 414(d) of such 3
119	119	Code), and (ii) if the employer, a fiduciary of the 4
120	120	plan, or another person acting on behalf of the em-5
121	121	ployer reviews and approves each investment de-6
122	122	scribed under clause (i)(II) prior to the investment 7
123	123	being offered to participants in the plan, or (E) a’’; 8
124	124	(2) by striking ‘‘(C), or (D)’’ and inserting 9
125	125	‘‘(C), (D), or (E)’’; and 10
126	126	(3) by striking ‘‘(iii) which is a plan funded’’ 11
127	127	and inserting ‘‘(iii) in the case of a plan not de-12
128	128	scribed in subparagraph (D), which is a plan fund-13
129	129	ed’’. 14
130	130	(c) A
131	131	MENDMENTS TO THE SECURITIESEXCHANGE 15
132	132	A
133	133	CT OF1934.—Section 3(a)(12)(C) of the Securities Ex-16
134	134	change Act of 1934 (15 U.S.C. 78c(a)(12)(C)) is amend-17
135	135	ed— 18
136	136	(1) by striking ‘‘or (iv)’’ and inserting ‘‘(iv) a 19
137	137	plan which meets the requirements of section 403(b) 20
138	138	of such Code (I) if (aa) such plan is subject to title 21
139	139	I of the Employee Retirement Income Security Act 22
140	140	of 1974 (29 U.S.C. 1001 et seq.), (bb) any employer 23
141	141	making such plan available agrees to serve as a fidu-24
142	142	ciary for the plan with respect to the selection of the 25
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145	145	•S 4917 IS
146	146	plan’s investments among which participants can 1
147	147	choose, or (cc) such plan is a governmental plan (as 2
148	148	defined in section 414(d) of such Code), and (II) if 3
149	149	the employer, a fiduciary of the plan, or another per-4
150	150	son acting on behalf of the employer reviews and ap-5
151	151	proves each investment described under subclause 6
152	152	(I)(bb) prior to the investment being offered to par-7
153	153	ticipants in the plan, or (v)’’; 8
154	154	(2) by striking ‘‘(ii), or (iii)’’ and inserting 9
155	155	‘‘(ii), (iii), or (iv)’’; and 10
156	156	(3) by striking ‘‘(II) is a plan funded’’ and in-11
157	157	serting ‘‘(II) in the case of a plan not described in 12
158	158	clause (iv), is a plan funded’’. 13
159	159	Æ
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