The House of Representatives has approved the Retirement Fairness for Charities and Educational Institutions Act as part of the broader INVEST Act, with a final vote tally of 302-123. The legislation was introduced in February by Representatives Frank D. Lucas (R-OK), Josh Gottheimer (D-NJ), Bill Foster (D-IL), and Andy Barr (R-KY).
The bill aims to provide employees in the nonprofit sector—including teachers and charity workers—who participate in 403(b) retirement plans with access to cost-effective investment options similar to those available through 401(k) and 457(b) plans. This effort builds on previous reforms established under the Secure Act 2.0, which sought to create greater parity for 403(b) plan participants.
“For too long, retirement options have unfairly disadvantaged public servants. Teachers, firefighters, and charity workers in Oklahoma do not enjoy the same access to quality retirement plans as everyone else. That is wrong,” said Congressman Frank D. Lucas. “This bipartisan bill provides the proper consistency across retirement plans and delivers a much needed solution to allow hardworking Americans’ retirement savings to thrive.”
Congressman Foster added, “I’m proud to join my colleagues in leading the effort to ensure that nonprofit employees and educators have access to the same low-cost retirement investment options as their private sector counterparts. By addressing these disparities, this legislation will level the playing field and help provide a secure financial future for those who dedicate their careers to serving others.”
“It’s already way too expensive to retire in New Jersey, and those who work tirelessly to serve our communities shouldn’t be penalized when they do. That’s why I’m proud to help lead the bipartisan Retirement Fairness for Charities and Educational Institutions Act to support our teachers, nurses, and non-profit workers by giving them more power over their pocketbooks,” said Congressman Gottheimer.“I will always fight so Jersey retirees can keep more of their hard earned dollars.”
Congressman Barr stated, “It is crucial that we provide employees of nonprofits and educational institutions with the same opportunities for retirement security as those in the private sector. By allowing 403(b) plan participants access to collective investment trusts, we can enhance their investment options and promote financial stability for those who dedicate their careers to serving others.”
Since its inception in 1958, there have been several changes affecting how Americans save for retirement through 403(b) plans. The new legislation would permit these plans to invest in collective investment trusts or insurance company separate accounts.
Frank Lucas has served as U.S. Representative for Oklahoma’s 3rd district since replacing Glenn English in 1994; he previously held office in the Oklahoma House of Representatives from 1984–1988. Born in Cheyenne, Oklahoma in 1960, Lucas graduated from Oklahoma State University–Stillwater with a Bachelor of Science degree.
The measure passed out of committee with a vote of 43-8 before advancing through the full House.
