Legislation recently approved by the House Financial Services Committee (H.R. 1013, the Retirement Fairness for Charities and Educational Institutions Act of 2025) would dramatically expand investment options available to participants in retirement plans maintained by many universities and hospitals.
Section 403(b) and Section 401(k) Plans
Section 403(b) plans are a type of defined contribution plan that may be maintained for the employees of Section 501(c)(3) tax-exempt entities, public universities and school systems, employers of ministers, and certain health and hospital service organizations. They see widespread use by public and private universities and by hospitals, and, as of 2024, collectively held approximately $1.3 trillion in assets. Like Section 401(k) plans, they typically provide for participant-directed investment, among options offered under the plan.
Not all Section…
