119-s424

[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[S. 424 Introduced in Senate

    (IS) ]

<DOC>

119th CONGRESS
 1st Session
 S. 424

 To amend the Federal securities laws to enhance 403

    (b) plans, and for 
 other purposes.

_______________________________________________________________________

 IN THE SENATE OF THE UNITED STATES

 February 5, 2025

 Mrs. Britt (for herself, Mr. Warnock, Mr. Cassidy, and Mr. Peters) 
introduced the following bill; which was read twice and referred to the 
 Committee on Banking, Housing, and Urban Affairs

_______________________________________________________________________

 A BILL

 To amend the Federal securities laws to enhance 403

    (b) plans, and for 
 other purposes.

 Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

 This Act may be cited as the ``Retirement Fairness for Charities 
and Educational Institutions Act of 2025''.

SEC. 2. ENHANCEMENT OF 403
        (B) PLANS.

    (a) Amendments to the Investment Company Act of 1940.--

Section 3
            (c) (11) of the Investment Company Act of 1940 (15 U.S.C. 80a-3
            (c) (11) ) 
is amended to read as follows:
 ``

    (11) Any--
 ``
        (A) employee's stock bonus, pension, or profit-
 sharing trust which meets the requirements for 
 qualification under 

section 401 of the Internal Revenue 
 Code of 1986;
 ``
        (B) custodial account meeting the requirements of 
 

section 403

    (b)

    (7) of such Code;
 ``
            (C) governmental plan described in 

section 3

    (a)

    (2)
            (C) of the Securities Act of 1933 (15 U.S.C. 
 77c

    (a)

    (2)
            (C) );
 ``
            (D) collective trust fund maintained by a bank 
 consisting solely of assets of one or more--
 ``
            (i) trusts described in subparagraph
        (A) ;
 ``
            (ii) government plans described in 
 subparagraph
            (C) ;
 ``
            (iii) church plans, companies, or 
 accounts that are excluded from the definition 
 of an investment company under paragraph

    (14) of this subsection; or
 ``
            (iv) plans which meet the requirements of 
 

section 403

    (b) of the Internal Revenue Code of 
 1986--
 ``
            (I) if--
 ``

    (aa) such plan is subject 
 to title I of the Employee 
 Retirement Income Security Act 
 of 1974 (29 U.S.C. 1001 et 
 seq.);
 ``

    (bb) any employer making 
 such plan available agrees to 
 serve as a fiduciary for the 
 plan with respect to the 
 selection of the plan's 
 investments among which 
 participants can choose; or
 ``
            (cc) such plan is a 
 governmental plan (as defined 
 in 

section 414
            (d) of such 
 Code); and
 ``
            (II) if the employer, a fiduciary 
 of the plan, or another person acting 
 on behalf of the employer reviews and 
 approves each investment alternative 
 offered under such plan described under 
 subclause
            (I) 
            (cc) prior to the 
 investment being offered to 
 participants in the plan; or
 ``
        (E) separate account the assets of which are 
 derived solely from--
 ``
            (i) contributions under pension or 
 profit-sharing plans which meet the 
 requirements of 

section 401 of the Internal 
 Revenue Code of 1986 or the requirements for 
 deduction of the employer's contribution under 
 

section 404

    (a)

    (2) of such Code;
 ``
            (ii) contributions under governmental 
 plans in connection with which interests, 
 participations, or securities are exempted from 
 the registration provisions of 

section 5 of the 
 Securities Act of 1933 (15 U.S.C. 77e) by 
 

section 3

    (a)

    (2)
            (C) of such Act (15 U.S.C. 
 77c

    (a)

    (2)
            (C) );
 ``
            (iii) advances made by an insurance 
 company in connection with the operation of 
 such separate account; and
 ``
            (iv) contributions to a plan described in 
 clause
            (iii) or
            (iv) of subparagraph
            (D) .''.

    (b) Amendments to the Securities Act of 1933.--

Section 3

    (a)

    (2) of 
the Securities Act of 1933 (15 U.S.C. 77c

    (a)

    (2) ) is amended--

    (1) by striking ``beneficiaries, or
            (D) '' and inserting 
 ``beneficiaries,
            (D) a plan which meets the requirements of 
 

section 403

    (b) of such Code
            (i) if
            (I) such plan is subject to 
 title I of the Employee Retirement Income Security Act of 1974 
 (29 U.S.C. 1001 et seq.),
            (II) any employer making such plan 
 available agrees to serve as a fiduciary for the plan with 
 respect to the selection of the plan's investments among which 
 participants can choose, or
            (III) such plan is a governmental 
 plan (as defined in 

section 414
            (d) of such Code), and
            (ii) if 
 the employer, a fiduciary of the plan, or another person acting 
 on behalf of the employer reviews and approves each investment 
 alternative offered under any plan described under clause
            (i) 
            (III) prior to the investment being offered to participants 
 in the plan, or
        (E) '';

    (2) by striking ``
            (C) , or
            (D) '' and inserting ``
            (C) ,
            (D) , 
 or
        (E) ''; and

    (3) by striking ``
            (iii) which is a plan funded'' and all 
 that follows through ``retirement income account).'' and 
 inserting ``
            (iii) in the case of a plan not described in 
 subparagraph
            (D) or
        (E) , which is a plan funded by an annuity 
 contract described in 

section 403

    (b) of such Code.''.
            (c) Amendments to the Securities Exchange Act of 1934.--

Section 3

    (a)

    (12)
            (C) of the Securities Exchange Act of 1934 (15 U.S.C. 
78c

    (a)

    (12)
            (C) ) is amended--

    (1) by striking ``or
            (iv) '' and inserting ``
            (iv) a plan 
 which meets the requirements of 

section 403

    (b) of such Code
            (I) if

    (aa) such plan is subject to title I of the Employee 
 Retirement Income Security Act of 1974 (29 U.S.C. 1001 et 
 seq.),

    (bb) any employer making such plan available agrees to 
 serve as a fiduciary for the plan with respect to the selection 
 of the plan's investments among which participants can choose, 
 or
            (cc) such plan is a governmental plan (as defined in 

section 414
            (d) of such Code), and
            (II) if the employer, a fiduciary of 
 the plan, or another person acting on behalf of the employer 
 reviews and approves each investment alternative offered under 
 any plan described under subclause
            (I) 
            (cc) prior to the 
 investment being offered to participants in the plan, or
            (v) '';

    (2) by striking ``
            (ii) , or
            (iii) '' and inserting ``
            (ii) ,
            (iii) , or
            (iv) ''; and

    (3) by striking ``
            (II) is a plan funded'' and inserting 
 ``
            (II) in the case of a plan not described in clause
            (iv) , is a 
 plan funded''.
            (d) Conforming Amendment to the Securities Exchange Act of 1934.--

Section 12

    (g)

    (2)
        (H) of the Securities Exchange Act of 1934 (15 U.S.C. 
78l

    (g)

    (2)
        (H) ) is amended by striking ``or
            (iii) '' and inserting ``
            (iii) a plan described in 

section 3

    (a)

    (12)
            (C) 
            (iv) of this Act, or
            (iv) ''.
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