119-HR-1013 Journalist Public Summary
119 · HR 1013 Retirement Fairness for Charities and Educational Institutions Act of 2025
A bipartisan House bill would let 403(b) retirement plans for teachers and nonprofit workers use lower‑cost pooled funds and other options—similar to 401(k)s—while adding employer fiduciary guardrails; it passed committee 43–8 and is queued for a House floor vote.
Public Summary of H.R. 1013 — “Retirement Fairness for Charities and Educational Institutions Act of 2025”
Headline Summary: A bipartisan bill would modernize 403(b) retirement plans for teachers, school staff, and nonprofit employees by allowing them to use pooled investment funds similar to those in 401(k)s, with added fiduciary safeguards.
What It Does: The bill updates federal securities laws so 403(b) plans can invest in collective investment trusts and similar pooled options often used by 401(k)s. In plain English, that could expand choices beyond mutual funds and annuities, potentially lowering fees. To protect savers, it requires employer or plan‑fiduciary oversight of the investment menu (and, for governmental 403(b)s, an explicit review and approval of each option before it’s offered).
- Who’s For It: Bipartisan sponsors—Reps. Frank Lucas (R‑OK), Josh Gottheimer (D‑NJ), Bill Foster (D‑IL), and Andy Barr (R‑KY)—with additional co‑sponsors from both parties added in November 2025.
- Who’s For It: The House Financial Services Committee advanced the bill 43–8 on May 20, 2025, signaling broad bipartisan support.
- Supporters say the bill levels the playing field with 401(k)s, could reduce investment costs for educators and nonprofit workers, and gives employers clearer responsibility to curate sensible, lower‑fee options.
- Who’s Against It: Some members who voted no in committee and other critics worry that opening 403(b)s to pooled funds that aren’t registered like mutual funds could mean less SEC‑style disclosure and transparency for small investors.
- Critics also argue that employers—especially small nonprofits and school districts—may face new compliance and fiduciary burdens, and that shifting menus could disrupt existing annuity‑based arrangements for participants.
What’s Next: As of November 28, 2025, H.R. 1013 was reported out of the House Financial Services Committee and placed on the Union Calendar (No. 340). The next step is House floor debate and a vote. If it passes the House, it moves to the Senate.
Discussion