Retirement Plan Improvements for Charities

Retirement Fairness for Charities and Educational Institutions Act of 2025This bill allows 403(b) retirement plans (i. e., retirement plans designed for certain employees of public schools, charities, and churches) to invest in collective investment trusts, which are a group of pooled investment assets held by a bank or trust company, and in insurance company separate accounts.

1. This bill allows more investment options for 403(b) retirement plans used by charities and educational institutions. 2. It requires employers to act as fiduciaries, ensuring they choose safe investment options for plan participants. 3. The bill clarifies rules for collective trust funds, making it easier for certain retirement plans to pool their resources. 4. It updates regulations to ensure that investments offered in these plans are reviewed and approved before being available to participants.

Employees working at charities and educational institutions who participate in 403(b) retirement plans.