Senator Peters Helps Lead Bipartisan Legislation to Improve Retirement Security for Non-Profit

Senator Peters Helps Lead Bipartisan Legislation to Improve Retirement Security for Non-Profit Employees

WASHINGTON, DC – U.S. Senator Gary Peters (MI) helped introduce bipartisan legislation to expand retirement savings opportunities for workers at non-profit organizations. The Retirement Fairness for Charities and Educational Institutions Act – which Peters introduced with U.S. Senators Katie Britt (R-AL), Raphael Warnock (D-GA), and Bill Cassidy (R-LA) – would allow employees that are enrolled in 403(b) retirement savings plans to invest in collective investment trusts (CITs). A CIT is a tax-exempt investment vehicle that provides a diversified, pooled investment option, similar to a mutual fund. Under current law, unlike 401(k) holders, 403(b) plan participants are not able to use this stable, lower-cost investment option in their plan. This commonsense legislation would create parity between 403(b) and 401(k) retirement savings plans to help improve retirement security for more than 15 million hardworking employees of non-profit organizations, such as hospitals, universities, and charities. According to the Michigan Nonprofit Association, as of December 2021, Michigan had over 53,000 nonprofit organizations that employed almost 11 percent of the state’s workforce.

“Hardworking charity and non-profit employees who support our healthcare and human services, arts and culture, civic engagement, and more deserve access to all available financial tools that can help them plan for retirement,” said Senator Peters. “This legislation would put those using a 403(b) plan on a level playing field with other retirement plan participants by allowing them to invest in collective investment trusts, giving them an equal opportunity to achieve their financial goals.”