Us Congress 2025-2026 Regular Session

Us Congress Senate Bill SB424 Compare Versions

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

Old	New	Differences
1	1	II
2	2	119THCONGRESS
3	3	1
4	4	STSESSION S. 424
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	FEBRUARY5, 2025
9	9	Mrs. B
10	10	RITT(for herself, Mr. WARNOCK, Mr. CASSIDY, and Mr. PETERS) 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 2025’’. 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 424 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 which 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 424 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 alternative 17
76	76	offered under such plan described 18
77	77	under subclause (I)(cc) prior to the 19
78	78	investment being offered to partici-20
79	79	pants in the plan; or 21
80	80	‘‘(E) separate account the assets of which 22
81	81	are derived solely from— 23
82	82	‘‘(i) contributions under pension or 24
83	83	profit-sharing plans which meet the re-25
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86	86	•S 424 IS
87	87	quirements of section 401 of the Internal 1
88	88	Revenue Code of 1986 or the requirements 2
89	89	for deduction of the employer’s contribu-3
90	90	tion under section 404(a)(2) of such Code; 4
91	91	‘‘(ii) contributions under govern-5
92	92	mental plans in connection with which in-6
93	93	terests, participations, or securities are ex-7
94	94	empted from the registration provisions of 8
95	95	section 5 of the Securities Act of 1933 (15 9
96	96	U.S.C. 77e) by section 3(a)(2)(C) of such 10
97	97	Act (15 U.S.C. 77c(a)(2)(C)); 11
98	98	‘‘(iii) advances made by an insurance 12
99	99	company in connection with the operation 13
100	100	of such separate account; and 14
101	101	‘‘(iv) contributions to a plan described 15
102	102	in clause (iii) or (iv) of subparagraph 16
103	103	(D).’’. 17
104	104	(b) A
105	105	MENDMENTS TO THE SECURITIESACT OF 18
106	106	1933.—Section 3(a)(2) of the Securities Act of 1933 (15 19
107	107	U.S.C. 77c(a)(2)) is amended— 20
108	108	(1) by striking ‘‘beneficiaries, or (D)’’ and in-21
109	109	serting ‘‘beneficiaries, (D) a plan which meets the 22
110	110	requirements of section 403(b) of such Code (i) if 23
111	111	(I) such plan is subject to title I of the Employee 24
112	112	Retirement Income Security Act of 1974 (29 U.S.C. 25
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115	115	•S 424 IS
116	116	1001 et seq.), (II) any employer making such plan 1
117	117	available agrees to serve as a fiduciary for the plan 2
118	118	with respect to the selection of the plan’s invest-3
119	119	ments among which participants can choose, or (III) 4
120	120	such plan is a governmental plan (as defined in sec-5
121	121	tion 414(d) of such Code), and (ii) if the employer, 6
122	122	a fiduciary of the plan, or another person acting on 7
123	123	behalf of the employer reviews and approves each in-8
124	124	vestment alternative offered under any plan de-9
125	125	scribed under clause (i)(III) prior to the investment 10
126	126	being offered to participants in the plan, or (E)’’; 11
127	127	(2) by striking ‘‘(C), or (D)’’ and inserting 12
128	128	‘‘(C), (D), or (E)’’; and 13
129	129	(3) by striking ‘‘(iii) which is a plan funded’’ 14
130	130	and all that follows through ‘‘retirement income ac-15
131	131	count).’’ and inserting ‘‘(iii) in the case of a plan not 16
132	132	described in subparagraph (D) or (E), which is a 17
133	133	plan funded by an annuity contract described in sec-18
134	134	tion 403(b) of such Code.’’. 19
135	135	(c) A
136	136	MENDMENTS TO THE SECURITIESEXCHANGE 20
137	137	A
138	138	CT OF1934.—Section 3(a)(12)(C) of the Securities Ex-21
139	139	change Act of 1934 (15 U.S.C. 78c(a)(12)(C)) is amend-22
140	140	ed— 23
141	141	(1) by striking ‘‘or (iv)’’ and inserting ‘‘(iv) a 24
142	142	plan which meets the requirements of section 403(b) 25
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145	145	•S 424 IS
146	146	of such Code (I) if (aa) such plan is subject to title 1
147	147	I of the Employee Retirement Income Security Act 2
148	148	of 1974 (29 U.S.C. 1001 et seq.), (bb) any employer 3
149	149	making such plan available agrees to serve as a fidu-4
150	150	ciary for the plan with respect to the selection of the 5
151	151	plan’s investments among which participants can 6
152	152	choose, or (cc) such plan is a governmental plan (as 7
153	153	defined in section 414(d) of such Code), and (II) if 8
154	154	the employer, a fiduciary of the plan, or another per-9
155	155	son acting on behalf of the employer reviews and ap-10
156	156	proves each investment alternative offered under any 11
157	157	plan described under subclause (I)(cc) prior to the 12
158	158	investment being offered to participants in the plan, 13
159	159	or (v)’’; 14
160	160	(2) by striking ‘‘(ii), or (iii)’’ and inserting 15
161	161	‘‘(ii), (iii), or (iv)’’; and 16
162	162	(3) by striking ‘‘(II) is a plan funded’’ and in-17
163	163	serting ‘‘(II) in the case of a plan not described in 18
164	164	clause (iv), is a plan funded’’. 19
165	165	(d) C
166	166	ONFORMINGAMENDMENT TO THE SECURITIES 20
167	167	E
168	168	XCHANGEACT OF1934.—Section 12(g)(2)(H) of the 21
169	169	Securities Exchange Act of 1934 (15 U.S.C. 78l(g)(2)(H)) 22
170	170	is amended by striking ‘‘or (iii)’’ and inserting ‘‘(iii) a plan 23
171	171	described in section 3(a)(12)(C)(iv) of this Act, or (iv)’’. 24
172	172	Æ
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