Retirement Fairness for Charities and Educational Institutions Act of 2023

IB Union Calendar No. 251 118TH CONGRESS 1ST SESSION H. R. 3063 [Report No. 118–311] To amend the Federal securities laws to enhance 403(b) plans, and for other purposes. IN THE HOUSE OF REPRESENTATIVES MAY 2, 2023 Mr. LUCAS (for himself, Mr. GOTTHEIMER, Mr. FOSTER, and Mr. BARR) in- troduced the following bill; which was referred to the Committee on Fi- nancial Services DECEMBER 12, 2023 Additional sponsors: Mr. NUNN of Iowa, Mr. PANETTA, Mr. FLOOD, Ms. SE- WELL, Mr. NICKEL, Mr. LAWLER, Mr. EVANS, Mr. PAPPAS, Mr. TRONE, Mr. THOMPSON of Pennsylvania, Mr. MEUSER, Mr. MORELLE, and Ms. PETTERSEN DECEMBER 12, 2023 Reported with an amendment, committed to the Committee of the Whole House on the State of the Union, and ordered to be printed [Strike out all after the enacting clause and insert the part printed in italic] [For text of introduced bill, see copy of bill as introduced on May 2, 2023] VerDate Sep 11 2014 01:00 Dec 13, 2023 Jkt 049200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6652 E:\BILLS\H3063.RH H3063 2 •HR 3063 RH A BILL To amend the Federal securities laws to enhance 403(b) plans, and for other purposes. VerDate Sep 11 2014 01:00 Dec 13, 2023 Jkt 049200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6652 E:\BILLS\H3063.RH H3063 3 •HR 3063 RH Be it enacted by the Senate and House of Representa- 1 tives of the United States of America in Congress assembled, 2 SECTION 1. SHORT TITLE. 3 This Act may be cited as the ‘‘Retirement Fairness for 4 Charities and Educational Institutions Act of 2023’’. 5 SEC. 2. ENHANCEMENT OF 403(b) PLANS. 6 (a) AMENDMENTS TO THE INVESTMENT COMPANY ACT 7 OF 1940.—Section 3(c)(11) of the Investment Company Act 8 of 1940 (15 U.S.C. 80a–3(c)(11)) is amended to read as 9 follows: 10 ‘‘(11) Any— 11 ‘‘(A) employee’s stock bonus, pension, or 12 profit-sharing trust which meets the require- 13 ments for qualification under section 401 of the 14 Internal Revenue Code of 1986; 15 ‘‘(B) custodial account meeting the require- 16 ments of section 403(b)(7) of such Code; 17 ‘‘(C) governmental plan described in section 18 3(a)(2)(C) of the Securities Act of 1933; 19 ‘‘(D) collective trust fund maintained by a 20 bank consisting solely of assets of one or more— 21 ‘‘(i) trusts described in subparagraph 22 (A); 23 ‘‘(ii) government plans described in 24 subparagraph (C); 25 VerDate Sep 11 2014 01:00 Dec 13, 2023 Jkt 049200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6203 E:\BILLS\H3063.RH H3063 4 •HR 3063 RH ‘‘(iii) church plans, companies, or ac- 1 counts that are excluded from the definition 2 of an investment company under paragraph 3 (14) of this subsection; or 4 ‘‘(iv) plans which meet the require- 5 ments of section 403(b) of the Internal Rev- 6 enue Code of 1986— 7 ‘‘(I) if— 8 ‘‘(aa) such plan is subject to 9 title I of the Employee Retirement 10 Income Security Act of 1974 (29 11 U.S.C. 1001 et seq.); 12 ‘‘(bb) any employer making 13 such plan available agrees to serve 14 as a fiduciary for the plan with 15 respect to the selection of the 16 plan’s investments among which 17 participants can choose; or 18 ‘‘(cc) such plan is a govern- 19 mental plan (as defined in section 20 414(d) of such Code); and 21 ‘‘(II) if the employer, a fiduciary 22 of the plan, or another person acting 23 on behalf of the employer reviews and 24 approves each investment described 25 VerDate Sep 11 2014 01:00 Dec 13, 2023 Jkt 049200 PO 00000 Frm 00004 Fmt 6652 Sfmt 6203 E:\BILLS\H3063.RH H3063 5 •HR 3063 RH under subclause (I)(bb) prior to the in- 1 vestment being offered to participants 2 in the plan; or 3 ‘‘(E) separate account the assets of which 4 are derived solely from— 5 ‘‘(i) contributions under pension or 6 profit-sharing plans which meet the require- 7 ments of section 401 of the Internal Revenue 8 Code of 1986 or the requirements for deduc- 9 tion of the employer’s contribution under 10 section 404(a)(2) of such Code; 11 ‘‘(ii) contributions under governmental 12 plans in connection with which interests, 13 participations, or securities are exempted 14 from the registration provisions of section 5 15 of the Securities Act of 1933 by section 16 3(a)(2)(C) of such Act; 17 ‘‘(iii) advances made by an insurance 18 company in connection with the operation 19 of such separate account; and 20 ‘‘(iv) contributions to a plan described 21 in subparagraph (D)(iv).’’. 22 (b) AMENDMENTS TO THE SECURITIES ACT OF 23 1933.—Section 3(a)(2) of the Securities Act of 1933 (15 24 U.S.C. 77c(a)(2)) is amended— 25 VerDate Sep 11 2014 01:00 Dec 13, 2023 Jkt 049200 PO 00000 Frm 00005 Fmt 6652 Sfmt 6203 E:\BILLS\H3063.RH H3063 6 •HR 3063 RH (1) by striking ‘‘or (D)’’ and inserting ‘‘(D) a 1 plan which meets the requirements of section 403(b) 2 of such Code (i) if (I) such plan is subject to title I 3 of the Employee Retirement Income Security Act of 4 1974 (29 U.S.C. 1001 et seq.), (II) any employer 5 making such plan available agrees to serve as a fidu- 6 ciary for the plan with respect to the selection of the 7 plan’s investments among which participants can 8 choose, or (III) such plan is a governmental plan (as 9 defined in section 414(d) of such Code), and (ii) if the 10 employer, a fiduciary of the plan, or another person 11 acting on behalf of the employer reviews and approves 12 each investment described under clause (i)(II) prior 13 to the investment being offered to participants in the 14 plan, or (E)’’; 15 (2) by striking ‘‘(C), or (D)’’ and inserting ‘‘(C), 16 (D), or (E)’’; and 17 (3) by striking ‘‘(iii) which is a plan funded’’ 18 and inserting ‘‘(iii) in the case of a plan not de- 19 scribed in subparagraph (D), which is a plan fund- 20 ed’’. 21 (c) AMENDMENTS TO THE SECURITIES EXCHANGE ACT 22 OF 1934.—Section 3(a)(12)(C) of the Securities Exchange 23 Act of 1934 (15 U.S.C. 78c(a)(12)(C)) is amended— 24 VerDate Sep 11 2014 01:00 Dec 13, 2023 Jkt 049200 PO 00000 Frm 00006 Fmt 6652 Sfmt 6203 E:\BILLS\H3063.RH H3063 7 •HR 3063 RH (1) by striking ‘‘or (iv)’’ and inserting ‘‘(iv) a 1 plan which meets the requirements of section 403(b) 2 of such Code (I) if (aa) such plan is subject to title 3 I of the Employee Retirement Income Security Act of 4 1974 (29 U.S.C. 1001 et seq.), (bb) any employer 5 making such plan available agrees to serve as a fidu- 6 ciary for the plan with respect to the selection of the 7 plan’s investments among which participants can 8 choose, or (cc) such plan is a governmental plan (as 9 defined in section 414(d) of such Code), and (II) if 10 the employer, a fiduciary of the plan, or another per- 11 son acting on behalf of the employer reviews and ap- 12 proves each investment described under subclause 13 (I)(bb) prior to the investment being offered to par- 14 ticipants in the plan, or (v)’’; 15 (2) by striking ‘‘(ii), or (iii)’’ and inserting 16 ‘‘(ii), (iii), or (iv)’’; and 17 (3) by striking ‘‘(II) is a plan funded’’ and in- 18 serting ‘‘(II) in the case of a plan not described in 19 clause (iv), is a plan funded’’. 20 VerDate Sep 11 2014 01:00 Dec 13, 2023 Jkt 049200 PO 00000 Frm 00007 Fmt 6652 Sfmt 6203 E:\BILLS\H3063.RH H3063 Union Calendar No. 251 118TH CONGRESS 1ST SESSION H. R. 3063 [Report No. 118–311] A BILL To amend the Federal securities laws to enhance 403(b) plans, and for other purposes. DECEMBER 12, 2023 Reported with an amendment, committed to the Com- mittee of the Whole House on the State of the Union, and ordered to be printed VerDate Sep 11 2014 01:00 Dec 13, 2023 Jkt 049200 PO 00000 Frm 00008 Fmt 6651 Sfmt 6651 E:\BILLS\H3063.RH H3063