# Plain Language Summary: Retirement Fairness for Charities and Educational Institutions Act of 2025

## What This Bill Does

This bill makes changes to federal securities laws to improve 403(b) retirement plans, which are used by employees at charitable organizations, educational institutions, and other non-profit employers. The bill updates rules that determine which retirement plans are exempt from certain federal investment regulations. Specifically, it clarifies that 403(b) plans can be treated similarly to other qualified retirement plans (like 401(k)s) under federal securities law, potentially making it easier for these plans to operate and offer investment options to their participants.

## Who Is Affected

The primary beneficiaries would be:
- **Employees** at non-profit organizations, schools, colleges, and charities who participate in 403(b) retirement plans
- **Non-profit employers** offering these retirement plans
- **Plan administrators** managing 403(b) investments

The changes aim to level the playing field between 403(b) plans and other retirement plans by reducing regulatory burdens while maintaining investor protections.

## Key Changes

The bill modifies two major federal securities laws to:
1. **Expand exemptions** for 403(b) plans from investment company registration requirements (similar to existing exemptions for 401(k) plans)
2. **Require oversight** by employers or plan fiduciaries to review and approve investment options before they're offered to employees
3. **Streamline compliance** for non-profit organizations managing retirement savings programs

The bill maintains safeguards by requiring that employers or fiduciaries actively review investment choices, ensuring participant protections remain in place.

Retirement Fairness for Charities and Educational Institutions Act of 2025

Lucas, Frank D.

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.