Retirement Fairness for Charities and Educational Institutions Act of 2025

This bill lets 403(b) retirement plans for workers at public schools, charities, and churches invest in more types of pooled funds. Specifically, it would allow these plans to use collective investment trusts run by banks and separate accounts offered by insurance companies, similar to what many 401(k) plans can use. The goal is to give savers more choices that may have lower costs or broader options .

To protect participants, an employer or another plan fiduciary must review and approve each investment choice before it’s offered to employees in the plan. The bill updates federal securities laws to make these changes possible for 403(b) plans and related pooled funds .

• Who is affected: Employees of public schools, charities, and churches with 403(b) plans
• What changes: 403(b) plans could invest in bank-run collective investment trusts and insurance company separate accounts, with required employer review of options
• Why it matters: More investment choices and potential for lower fees in retirement plans