II
119THCONGRESS
1
STSESSION S. 424
To amend the Federal securities laws to enhance 403(b) plans, and for
other purposes.
IN THE SENATE OF THE UNITED STATES
FEBRUARY5, 2025
Mrs. B
RITT(for herself, Mr. WARNOCK, Mr. CASSIDY, and Mr. PETERS) in-
troduced the following bill; which was read twice and referred to the Com-
mittee on Banking, Housing, and Urban Affairs
A BILL
To amend the Federal securities laws to enhance 403(b)
plans, and for other purposes.
Be it enacted by the Senate and House of Representa-1
tives of the United States of America in Congress assembled, 2
SECTION 1. SHORT TITLE. 3
This Act may be cited as the ‘‘Retirement Fairness 4
for Charities and Educational Institutions Act of 2025’’. 5
SEC. 2. ENHANCEMENT OF 403(b) PLANS. 6
(a) A
MENDMENTS TO THE INVESTMENTCOMPANY 7
A
CT OF1940.—Section 3(c)(11) of the Investment Com-8
pany Act of 1940 (15 U.S.C. 80a–3(c)(11)) is amended 9
to read as follows: 10
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•S 424 IS
‘‘(11) Any— 1
‘‘(A) employee’s stock bonus, pension, or 2
profit-sharing trust which meets the require-3
ments for qualification under section 401 of the 4
Internal Revenue Code of 1986; 5
‘‘(B) custodial account meeting the re-6
quirements of section 403(b)(7) of such Code; 7
‘‘(C) governmental plan described in sec-8
tion 3(a)(2)(C) of the Securities Act of 1933 9
(15 U.S.C. 77c(a)(2)(C)); 10
‘‘(D) collective trust fund maintained by a 11
bank consisting solely of assets of one or 12
more— 13
‘‘(i) trusts described in subparagraph 14
(A); 15
‘‘(ii) government plans described in 16
subparagraph (C); 17
‘‘(iii) church plans, companies, or ac-18
counts that are excluded from the defini-19
tion of an investment company under para-20
graph (14) of this subsection; or 21
‘‘(iv) plans which meet the require-22
ments of section 403(b) of the Internal 23
Revenue Code of 1986— 24
‘‘(I) if— 25
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‘‘(aa) such plan is subject to 1
title I of the Employee Retire-2
ment Income Security Act of 3
1974 (29 U.S.C. 1001 et seq.); 4
‘‘(bb) any employer making 5
such plan available agrees to 6
serve as a fiduciary for the plan 7
with respect to the selection of 8
the plan’s investments among 9
which participants can choose; or 10
‘‘(cc) such plan is a govern-11
mental plan (as defined in sec-12
tion 414(d) of such Code); and 13
‘‘(II) if the employer, a fiduciary 14
of the plan, or another person acting 15
on behalf of the employer reviews and 16
approves each investment alternative 17
offered under such plan described 18
under subclause (I)(cc) prior to the 19
investment being offered to partici-20
pants in the plan; or 21
‘‘(E) separate account the assets of which 22
are derived solely from— 23
‘‘(i) contributions under pension or 24
profit-sharing plans which meet the re-25
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quirements of section 401 of the Internal 1
Revenue Code of 1986 or the requirements 2
for deduction of the employer’s contribu-3
tion under section 404(a)(2) of such Code; 4
‘‘(ii) contributions under govern-5
mental plans in connection with which in-6
terests, participations, or securities are ex-7
empted from the registration provisions of 8
section 5 of the Securities Act of 1933 (15 9
U.S.C. 77e) by section 3(a)(2)(C) of such 10
Act (15 U.S.C. 77c(a)(2)(C)); 11
‘‘(iii) advances made by an insurance 12
company in connection with the operation 13
of such separate account; and 14
‘‘(iv) contributions to a plan described 15
in clause (iii) or (iv) of subparagraph 16
(D).’’. 17
(b) A
MENDMENTS TO THE SECURITIESACT OF 18
1933.—Section 3(a)(2) of the Securities Act of 1933 (15 19
U.S.C. 77c(a)(2)) is amended— 20
(1) by striking ‘‘beneficiaries, or (D)’’ and in-21
serting ‘‘beneficiaries, (D) a plan which meets the 22
requirements of section 403(b) of such Code (i) if 23
(I) such plan is subject to title I of the Employee 24
Retirement Income Security Act of 1974 (29 U.S.C. 25
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1001 et seq.), (II) any employer making such plan 1
available agrees to serve as a fiduciary for the plan 2
with respect to the selection of the plan’s invest-3
ments among which participants can choose, or (III) 4
such plan is a governmental plan (as defined in sec-5
tion 414(d) of such Code), and (ii) if the employer, 6
a fiduciary of the plan, or another person acting on 7
behalf of the employer reviews and approves each in-8
vestment alternative offered under any plan de-9
scribed under clause (i)(III) prior to the investment 10
being offered to participants in the plan, or (E)’’; 11
(2) by striking ‘‘(C), or (D)’’ and inserting 12
‘‘(C), (D), or (E)’’; and 13
(3) by striking ‘‘(iii) which is a plan funded’’ 14
and all that follows through ‘‘retirement income ac-15
count).’’ and inserting ‘‘(iii) in the case of a plan not 16
described in subparagraph (D) or (E), which is a 17
plan funded by an annuity contract described in sec-18
tion 403(b) of such Code.’’. 19
(c) A
MENDMENTS TO THE SECURITIESEXCHANGE 20
A
CT OF1934.—Section 3(a)(12)(C) of the Securities Ex-21
change Act of 1934 (15 U.S.C. 78c(a)(12)(C)) is amend-22
ed— 23
(1) by striking ‘‘or (iv)’’ and inserting ‘‘(iv) a 24
plan which meets the requirements of section 403(b) 25
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of such Code (I) if (aa) such plan is subject to title 1
I of the Employee Retirement Income Security Act 2
of 1974 (29 U.S.C. 1001 et seq.), (bb) any employer 3
making such plan available agrees to serve as a fidu-4
ciary for the plan with respect to the selection of the 5
plan’s investments among which participants can 6
choose, or (cc) such plan is a governmental plan (as 7
defined in section 414(d) of such Code), and (II) if 8
the employer, a fiduciary of the plan, or another per-9
son acting on behalf of the employer reviews and ap-10
proves each investment alternative offered under any 11
plan described under subclause (I)(cc) prior to the 12
investment being offered to participants in the plan, 13
or (v)’’; 14
(2) by striking ‘‘(ii), or (iii)’’ and inserting 15
‘‘(ii), (iii), or (iv)’’; and 16
(3) by striking ‘‘(II) is a plan funded’’ and in-17
serting ‘‘(II) in the case of a plan not described in 18
clause (iv), is a plan funded’’. 19
(d) C
ONFORMINGAMENDMENT TO THE SECURITIES 20
E
XCHANGEACT OF1934.—Section 12(g)(2)(H) of the 21
Securities Exchange Act of 1934 (15 U.S.C. 78l(g)(2)(H)) 22
is amended by striking ‘‘or (iii)’’ and inserting ‘‘(iii) a plan 23
described in section 3(a)(12)(C)(iv) of this Act, or (iv)’’. 24
Æ
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