The House voted 295 to 128 on Wednesday to pass a bill that would give some 403(b) retirement plans access to investments already available in many 401(k) plans. The proposal would let qualifying plans offer collective investment trusts and certain accounts maintained by insurance companies. The vote clears one chamber of Congress. It does not change what employees can buy through their plans today.
The House vote came at 2:43 p.m. Eastern on Nov. 11. The measure, H.R. 1013, is called the Retirement Fairness for Charities and Educational Institutions Act of 2025. The Senate has a companion bill. The American Society of Pension Professionals and Actuaries reported ahead of the House vote that the Senate bill had yet to advance out of committee.
Who could see new options
A 403(b) is a workplace retirement plan available through public schools and some colleges, hospitals, charities and religious organizations. Eligibility depends on the employer and plan. Employees can contribute from their paychecks, and the options on the plan menu determine how they can invest that money. The IRS’s guide to 403(b) plans explains the types of accounts and contracts that can hold those savings.
The House bill attaches conditions to the proposed securities-law exemptions. It covers plans subject to the federal Employee Retirement Income Security Act, plans whose employers agree to act as fiduciaries when selecting the investments participants can choose, and governmental plans where an employer, plan fiduciary or person acting for the employer reviews and approves each investment before offering it. These conditions are relevant to public school staff because public-sector plans generally operate outside the federal law’s private-sector framework.
How the proposed investments work
The Office of the Comptroller of the Currency describes a collective investment fund as a bank-administered trust that pools assets. Like a mutual fund, it can give participants exposure to a portfolio of securities. Its legal structure and disclosure rules differ. The House text would also expand eligibility for certain insurance company separate accounts, another investment structure distinct from an ordinary mutual fund.
This is the second part of a change Congress started in 2022. The SECURE 2.0 Act removed a tax-code barrier that had kept 403(b) custodial accounts from investing in collective trusts. The pension professionals’ group notes that the 2022 law left federal securities restrictions in place. The new bill addresses that gap by amending three securities laws. The IRS already lists group trusts in its 403(b) tax guidance. The House vote addresses the separate securities rules.
The U.S. Chamber of Commerce welcomed the vote and argues that broader access could reduce costs. Minority views in the House committee report warn that employees could have fewer of the disclosure protections they receive with registered mutual funds. A pooled investment can cost less, but the bill sets no price and a plan sponsor would still have to make it available.
What employees can check now
Whether you work for a school or a nonprofit hospital, your employer’s plan administrator can confirm which account you have and provide its current investment menu. If the law changes and a plan adds a trust, ask for its expense information, objective and investment mix. A fund holding different assets carries different risks, even if it has the same target retirement year or a lower fee.
The SEC’s guide for teachers recommends comparing all costs, including expenses that do not appear as separate charges on a statement. For scale, a 0.25% annual investment expense is $250 on a steady $100,000 balance. At 0.50%, it is $500. That example leaves out plan administration fees, any annuity surrender charges and changes in the balance. Request a written fee breakdown from the plan or vendor before comparing current and prospective options.
