Britt urges Senate to pass retirement investment options for public-sector workers
The legislation would let 403(b) plans invest in collective investment trusts but would not require employers to offer the new options.
U.S. Senator Katie Britt, R-Alabama, is urging the Senate to advance legislation that would expand retirement investment options for teachers, nurses, ministers and nonprofit employees after the U.S. House of Representatives approved the measure Wednesday.
The House passed the Retirement Fairness for Charities and Educational Institutions Act, H.R. 1013, on November 11 by a vote of 295-128. The legislation, which Britt is sponsoring in the Senate, would allow workers enrolled in certain retirement plans to access additional investment options currently available to many private-sector employees.
Britt welcomed the House passage and expressed gratitude for the White House's backing of the legislation in a statement, calling for the Senate to take up and approve the bill.
"Thrilled to see the House pass the Retirement Fairness for Charities and Educational Institutions Act, legislation I’m proud to lead in the Senate," Britt said. "I’m also pleased to see the White House support this commonsense bill. I urge the Senate to take up and pass this legislation to strengthen 403(b) plans and maximize savings to ensure our nurses, ministers, teachers, and charitable workers have the opportunity for retirement security."
The legislation focuses on 403(b) retirement plans, which are tax-advantaged savings accounts commonly offered to employees of public schools, hospitals, churches and nonprofit organizations. They function similarly to 401(k) plans but have historically faced federal restrictions on certain investment options.
Under the bill, 403(b) plans would be allowed to invest in collective investment trusts and certain insurance company separate accounts. Collective investment trusts are professionally managed investment funds that pool money from multiple retirement plans to invest in a range of assets.
The change would give employees greater access to investment options already available to many workers saving through 401(k) plans. Expanding those options could increase competition among investment providers, reduce costs and give workers more opportunities to grow their retirement savings.
The legislation would not require employers to offer the new investment options or guarantee higher returns. Instead, it would remove federal regulatory barriers preventing 403(b) plans from accessing those investment vehicles.
Britt introduced the Senate companion bill, S. 424, in February 2025 alongside Senator Raphael Warnock, D-Georgia The legislation was referred to the Senate Committee on Banking, Housing, and Urban Affairs, where it has not yet advanced.
With House passage, the legislation now awaits action in the Senate. If approved, it would be sent to President Donald Trump for his signature.
