Allow collective investment trusts in 403(b) plans: A trade group’s call to action

Credit: highwaystarz/Adobe Stock;

Should collective investment trusts be allowed in 403(b) plans? The Investment Company Institute (ICI) thinks so: 403(b) plans are an important component of the U.S. retirement system with $1.4 trillion in assets, according to the ICI..On Feb. 6, Senator Katie Britt (R-AL) reintroduced the Retirement Fairness for Charities and Educational Institutions Act of 2025, which would allow 403(b) plans to include collective investment trusts (CITs) as part of their investment menu options. The bill is the latest attempt to pass the CIT legislation after Congress was unable to enact previous versions of this bill. 

Now, ICI President and CEO Eric J. Pan released the following statement last week:“ICI thanks these dedicated members of Congress for their bipartisan leadership on this important legislation and continuing the fight for retirement savers in the 119th Congress. The new law will allow 403(b) plans, often used by people working in education, charitable organizations, and public service, to invest in collective investment trusts (CITs),” said ICI CEO and President Eric J. Pan.