Retirement Fairness for Charities and Educational Institutions Act of 2025

This bill expands what 403(b) retirement plans can invest in. These plans, used by many workers at public schools, charities, and churches, would be allowed to put money into pooled funds run by banks (collective investment trusts) and into pooled accounts run by insurance companies. This could give savers more choices for their retirement investments.

It also adds guardrails. Employers that offer these plans must take responsibility for choosing and approving the investment options. For government plans, an employer or plan fiduciary must review and approve each option before it’s offered to workers.

• Who is affected: Workers with 403(b) plans at public schools, charities, and churches; their employers
• What changes: 403(b) plans could invest in bank-run collective investment trusts and insurance company separate accounts, with employer oversight of the choices offered to employees