Retirement Fairness for Educators and Nonprofit Employees
Nurses, teachers, and nonprofit employees deserve access to the same broad range of cost-efficient and diversified investment options available to private sector 401(k) savers.
Key Takeaways:
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ICI supports policies and proposals, such as the Incentivizing New Ventures and Economic Strength Through Capital Formation Act of 2025 (INVEST Act), that level the retirement playing field for all Americans.
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Expanding access to low-cost CITs in retirement plans would not only provide increased investment choice and flexibility, it would also give 403(b) plan participants the opportunity to generate greater retirement wealth.
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The bipartisan INVEST Act would eliminate inequality in retirement plans and provide parity for 403(b) plan participants.
Millions of nurses, educators, and nonprofit employees save for retirement using an employer-sponsored 403(b) plan, which is their version of the well-known 401(k). While 401(k) participants can invest in collective investment trusts (CITs)—cost-efficient pooled investment products that offer similar investment strategies as mutual funds—403(b) participants are unable to do so.
The INVEST Act, a bipartisan capital formation package, passed the House in December 2025. It includes the following retirement-plan provision, which ICI strongly supports:
- The Retirement Fairness for Charities and Educational Institutions Act, will allow CITs in 403(b) plans, giving Americans working in education, health care, and other tax-exempt organizations access to the same investment products in their employer-sponsored retirement accounts as everyone else.
The Benefits of CITs
CITs offer many advantages as retirement plan offerings. Increasingly popular, they:
- Have been used for decades as an investment option in 401(k) plans.
- Are now the most prevalent investment vehicle in defined contribution plans, surpassing mutual funds.
- Benefit from strong regulatory oversight provided by the Office of the Comptroller of the Currency or other federal or state banking regulators, the Internal Revenue Service, and the Department of Labor.
We urge the Senate to take action on the INVEST Act, which would provide critical investor protections, helping ensure there is a fiduciary responsible for the selection and oversight of any CIT made available in a 403(b) plan.
Key Resources:
ICI Applauds Bipartisan Congressional Efforts to Help Retirement Savers Secure Their Financial Future
Washington, DC, February 6, 2025—Today, Investment Company Institute (ICI) President and CEO Eric J. Pan released the following statement after the Retirement Fairness for Charities and Educational Institutions Act of 2025 was reintroduced in both the U.S. House of Representatives and U.S. Senate. The bill overwhelmingly passed as a bipartisan amendment in the House during the 118 th Congress. “ICI thanks these dedicated members of Congress for their bipartisan leadership on this important legislation and continuing the fight for retirement savers in the 119 th Congress. The Retirement...
Teachers and Nurses Deserve Access to the Same Investment Options as 401(k) Savers
Teachers, nurses, and millions of other public education and nonprofit workers are being denied the full range of retirement investment options that the private sector enjoys. In some cases, the exclusion can cost these workers in higher fees over time, lessening their ability to maximize their retirement savings. Under current law, 403(b) plans, which are essentially 401(k)s for charities, school districts, and certain other tax-exempt organizations, are prohibited from holding collective investment trusts (CITs). These trusts are highly regulated, pooled investment vehicles intended for...
ICI Applauds Senate Introduction of Capital Markets Legislation
Washington, DC; September 24, 2024—Today, Investment Company Institute (ICI) President and CEO Eric Pan released the following statement regarding Senator Tim Scott’s (R-SC), Ranking Member of the Senate Committee on Banking, Housing, and Urban Affairs, introduction of the Empowering Main Street in America Act. The bill package includes the Increasing Investor Opportunities Act and the Retirement Fairness for Charities and Educational Institutions Act, two bills that ICI has advocated strongly in favor of . “ICI thanks Sen. Scott for his leadership and hard work on necessary reforms to protect...