Source: United States House of Representatives – Representative Darin LaHood (18th District of Illinois)
Washington, D.C. – The House Ways and Means Committee, today, unanimously passed the Securing a Strong Retirement Act of 2021 (SECURE) out of committee, which includes two bipartisan pieces of legislation introduced by Congressman LaHood. The SECURE Act aims to help workers save for retirement and includes the Retirement Parity for Student Loans Act and the Public Service Retirement Fairness Act, provisions authored by Rep. LaHood.
“The bipartisan work done by the Ways and Means Committee with SECURE 2.0 will help Americans save for retirement at all stages of their career,”
Supporters say CITs are a less expensive alternative to mutual funds.
A bipartisan group of US representatives is backing the re-introduction of the Public Service Retirement Fairness Act, which would modify rules relating to 403(b) plans so that they would be allowed to include collective investment trusts (CITs) as investment options.
The bill was introduced by Jimmy Panetta, D-California, and co-sponsored by Darin LaHood, R-Illinois; Ron Estes, R-Kansas; Brendan Boyle, D-Pennsylvania; Andy Barr, R-Kentucky; and Madeleine Dean, D-Pennsylvania.
CITs are tax-exempt, pooled investment vehicles maintained by a bank or trust company and offer similar benefits to mutual funds but typically at lower costs. For example, they tend to have lower operating costs, including regulatory, administrative, distribution, and marketing fees, than mutual funds.
By Benjamin Cox on April 26, 2021 at 8:25am
18
th District Congressman Darin LaHood is co-sponsoring re-introduced legislation to allow for broader investment in public sector employment retirement programs.
The bipartisan Public Service Retirement Fairness Act would allow public sector employees like teachers, nonprofit employees, and public servants to have access to diversified investments in their 403(b) defined-contribution retirement-savings plans. 403(b) plans are similar to 401(k) plans offered in the private sector, but they cannot invest in Collective Investment Trusts.
The new law would allow public sector employee retirement programs to invest in the CITs, which typically have lower fees and more flexibility than the types of annuity contracts and mutual funds that the 403(b) plans are limited to investing in by law. Due to compound interest and higher fees, it can allegedly cost public servants thousands of dollars in retirement savings.
Bill to expand collective investment trusts to 403(b) plans reintroduced pionline.com - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from pionline.com Daily Mail and Mail on Sunday newspapers.
Congressman Again Pushes for Expanding Investment Options in 403(b)s
A lack of access to the same investment types allowed in other DC plans means 403(b) plan participants are missing out on increased retirement savings, industry sources say.
Reported by
Congressman Jimmy Panetta, D-California, has re-introduced the Public Service Retirement Fairness Act, a bill that would allow collective investment trusts (CITs) as investment options in 403(b) plans.
The bill was first introduced last March and was referred to the House Committee on Financial Services and the House Committee on Ways and Means, but nothing has come of it since.
CITs are collectively managed investment vehicles that typically have lower costs and more flexibility than annuity contracts and mutual funds the only types of investments allowed in 403(b) plans. With excessive fee lawsuits extending to the 403(b) space and account assets growing larger with time, 403(b) plan sponsors have been inquiring about offering