Retirement Fairness for Charities and Educational Institutions Act of 2025

The Retirement Fairness for Charities and Educational Institutions Act of 2025 would expand investment options available to 403(b) retirement plans. These plans currently serve employees of public schools, charitable organizations, and churches. If enacted, the bill would permit these retirement plans to invest in collective investment trusts, which are pooled investment assets managed by banks or trust companies, as well as in insurance company separate accounts.

Currently, 403(b) plans have more limited investment options compared to other retirement plans. This bill would broaden those options, potentially allowing employees at eligible organizations to access different investment vehicles that may offer different risk profiles, fees, or diversification strategies. The practical effect would be to give workers at schools, charities, and religious institutions more flexibility in how they invest their retirement savings.

The bill was introduced in the Senate in February 2025 and is currently under committee consideration. It has not yet been voted on by the full chamber.