Retirement Fairness for Charities and Educational Institutions Act of 2025

# Retirement Fairness for Charities and Educational Institutions Act of 2025 - Summary **What the Bill Would Do** This bill would expand the investment options available through 403(b) retirement plans, which are retirement savings accounts designed for employees of nonprofits, public schools, charities, and religious institutions. Currently, these plans have limited investment choices. The bill would allow them to invest in collective investment trusts (pooled investment funds managed by banks or trust companies) and insurance company separate accounts—options that are already available to other types of retirement plans.

Essentially, it levels the playing field by giving employees at these organizations the same investment flexibility that workers in corporate 401(k) plans already have. **Who It Affects** The bill primarily affects employees of charities, schools, churches, and other tax-exempt organizations who have 403(b) retirement accounts. It also affects the financial institutions that manage these retirement plans and investment products. The changes would likely benefit workers by offering more diversified and potentially lower-cost investment options for their retirement savings. **Current Status** The bill was introduced in the Senate in February 2025 by Senator Katie Britt (R-AL) and is currently in committee, meaning it hasn't yet been voted on by the full Senate.