U.S. House votes to expand retirement options for teachers, nonprofit workers

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(The Center Square) –  The U.S. House overwhelmingly voted to pass legislation that would give teachers, pastors and many nurses a potentially more appealing retirement option.

The House voted 295-128 on Wednesday to pass the Retirement Fairness for Charities and Educational Institutions Act. All 211 Republicans were joined by 83 Democrats to vote in favor of the bill; 128 Democrats voted against it, according to the U.S. House clerk.

The measure would let public school and nonprofit workers with 403(b) retirement plans invest in collective investment trusts, according to the bill language. These often have lower fees. In a June 2025 study, Vanguard said this reform could mean an extra $23,000 to $28,000 in savings per worker over 40 years.

“It is always a good day when Republicans and Democrats put aside their partisan differences and come together to do what is right for the American people,” National Association of Christian Lawmakers president Jason Rapert said in a statement. “Republicans and Democrats came together to say that where you work shouldn’t determine how well you can save. Pastors, ministry leaders, church staff, and faith-based workers have given their careers to serving others, often for modest pay, and they have waited long enough for the same retirement tools that workers elsewhere have had for years.”

Opponents of the measure, such as U.S. Rep. Maxine Waters, D-Calif., and various labor groups, argued that expanding collective investment trusts to such retirement plans could strip away federal securities protections for those workers because they are not covered by the Employee Retirement Income Security Act (ERISA), the federal law that provides protections for retirement savers. 

U.S. Rep. Frank Lucas, R-Okla., said the proposal would put nonprofit employees on the same footing as everyone else.

“For several Congresses, this legislation has received bipartisan support in both committee and on the House floor,” Lucas said on the House floor. “It is time we finish the work and ensure that teachers, nonprofit employees, and other public servants have access to the same retirement investment options as private-sector workers.”

U.S. Rep.Ann Wagner, R-Mo., expressed a similar sentiment.

“It is so important that we expand retirement options for hardworking Americans, especially healthcare and charity workers, teachers, and others who sacrifice every day to better their communities,” she said on the House floor. “This legislation will remove unnecessary barriers and help make it easier for families to invest for their future.”

Congress tried fixing this problem before. It passed the SECURE 2.0 Act in 2022. That law changed the tax code to let 403(b) retirement plans use collective investment trusts. Yet, federal securities laws still don’t let most plans offer them.

U.S. Sen. Katie Britt, R-Ala., who sponsors the proposal in the U.S. Senate, thinks President Donald Trump would sign it into law if it reached his desk.

“Thrilled to see the House pass the Retirement Fairness for Charities and Educational Institutions Act, legislation I’m proud to lead in the Senate,” she posted on X. “I’m also pleased to see the White House support this commonsense bill. I urge the Senate to take up and pass this legislation to strengthen 403(b) plans and maximize savings to ensure our nurses, ministers, teachers, and charitable workers have the opportunity for retirement security.”

Britt’s bill has over 20 cosponsors, including a mix of Democrats and Republicans.