New Bill Allowing CITs in 403(b) Plans Introduced in Senate

Senator Tim Scott (R-SC), Ranking Member of the Senate Committee on Banking, Housing, and Urban Affairs, along with fellow republican committee members Senators Mike Crapo (R-ID), Mike Rounds (R-SD), Thom Tillis (R-NC), John Kennedy (R-LA), Bill Hagerty (R-TN), Cynthia Lummis (R-WY), Katie Britt (R-AL), Kevin Cramer (R-ND), Steve Daines (R-MT), and Jerry Moran (R-KS), have introduced S. 5139, Empowering Main Street in America Act of 2024. Included in this bill is a section that would allow 403(b) plans to invest in collective investment trusts (CITs). The bill text is substantially similar to text found in S. 4917, introduced in the Senate earlier this year by Sen. Britt, and H.R. 2799 which the House of Representatives passed in March.

While SECURE 2.0 amended the Internal Revenue Code to allow CITs for 403(b) plans, correlating amendments to securities laws required to fully implement the provision were omitted.