IRI urges Senate action on 403(b) parity legislation

The Insured Retirement Institute is urging Senate leaders to move forward with legislation that would expand investment options for people saving in 403(b) retirement plans.

In a Sept. 1 letter, IRI asked Senate Majority Leader John Thune, R-S.D., and Senate Majority Whip John Barrasso, R-Idaho, to advance the Retirement Fairness for Charities and Educational Institutions Act before the end of the 119th Congress.

The bill would affect 403(b) plans, which are commonly used by teachers, health care workers, clergy members and nonprofit employees.

Supporters say the measure would give those plans access to investment options that are already available in many 401(k) plans and other workplace retirement plans.

According to IRI, more than 10 million Americans participate in 403(b) plans.

What current securities laws prevent

IRI said current securities laws prevent many 403(b) plans from using collective investment trusts, or CITs, and certain insurance company separate accounts that can be used in other retirement plans.

Congress addressed part of the issue in the SECURE 2.0 Act, which changed tax law to allow CITs and certain insurance company separate accounts in 403(b) plans.

However, IRI said additional changes to federal securities laws are still needed before those changes can take full effect.

The bill has received growing attention in Congress.

During an Aug. 6 hearing of the Senate Banking, Housing and Urban Affairs Committee, Sen. Katie Britt, R-Ala., focused her questions on the proposal and said she plans to seek consideration of the measure as an amendment to the Digital Asset Market Clarity Act when that legislation reaches the Senate floor, according to IRI.

In its letter, IRI said the bill has 21 Senate cosponsors, including 12 members of the Senate Banking Committee. The organization also noted that the House passed similar legislation as part of the INVEST Act in December 2025 by a vote of 302-123.

IRI urged Senate leaders to advance the legislation before the end of the 119th Congress. The organization said passing the bill is one of its top federal legislative priorities for 2026.

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