[Congressional Bills 117th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2741 Introduced in House (IH)]
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117th CONGRESS
1st Session
H. R. 2741
To modify rules relating to 403(b) plans.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
April 21, 2021
Mr. Panetta (for himself, Mr. Estes, Mr. Brendan F. Boyle of
Pennsylvania, Mr. LaHood, Ms. Dean, and Mr. Barr) introduced the
following bill; which was referred to the Committee on Financial
Services, and in addition to the Committee on Ways and Means, for a
period to be subsequently determined by the Speaker, in each case for
consideration of such provisions as fall within the jurisdiction of the
committee concerned
_______________________________________________________________________
A BILL
To modify rules relating to 403(b) plans.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Public Service Retirement Fairness
Act of 2021''.
SEC. 2. ENHANCEMENT OF 403(B) PLANS.
(a) Permitted Investments.--
(1) In general.--Section 403(b)(7)(A)(i) of the Internal
Revenue Code of 1986 is amended to read as follows:
``(i) the amounts to be held in that
custodial account are invested in regulated
investment company stock or a group trust
intended to satisfy the requirements of
Internal Revenue Service Revenue Ruling 81-100
(or any successor guidance), and''.
(2) Conforming amendment.--Section 403(b)(7) of such Code
is amended by striking ``for regulated investment company
stock''.
(3) Effective date.--The amendments made by this subsection
shall apply to amounts invested after December 31, 2020.
(b) Amendments to the Investment Company Act of 1940.--Section
3(c)(11) of the Investment Company Act of 1940 (15 U.S.C. 80a-3(c)(11))
is amended to read as follows:
``(11) Any--
``(A) employee's stock bonus, pension, or profit-
sharing trust which meets the requirements for
qualification under section 401 of the Internal Revenue
Code of 1986;
``(B) custodial account meeting the requirements of
section 403(b)(7) of such Code;
``(C) governmental plan described in section
3(a)(2)(C) of the Securities Act of 1933;
``(D) collective trust fund maintained by a bank
consisting solely of assets of one or more of such
trusts, government plans, or church plans, companies or
accounts that are excluded from the definition of an
investment company under paragraph (14) of this
subsection;
``(E) plan which meets the requirements of section
403(b) of the Internal Revenue Code of 1986 if--
``(i) such plan is subject to title I of
the Employee Retirement Income Security Act of
1974 (29 U.S.C. 1001 et seq.);
``(ii) any employer making such plan
available agrees to serve as a fiduciary for
the plan with respect to the selection of the
plan's investments among which participants can
choose; or
``(iii) such plan is a governmental plan
(as defined in section 414(d) of such Code); or
``(F) separate account the assets of which are
derived solely from--
``(i) contributions under pension or
profit-sharing plans which meet the
requirements of section 401 of the Internal
Revenue Code of 1986 or the requirements for
deduction of the employer's contribution under
section 404(a)(2) of such Code;
``(ii) contributions under governmental
plans in connection with which interests,
participations, or securities are exempted from
the registration provisions of section 5 of the
Securities Act of 1933 by section 3(a)(2)(C) of
such Act;
``(iii) advances made by an insurance
company in connection with the operation of
such separate account; and
``(iv) contributions to a plan described in
subparagraph (E).''.
(c) Amendments to the Securities Act of 1933.--Section 3(a)(2) of
the Securities Act of 1933 (15 U.S.C. 77c(a)(2)) is amended--
(1) by striking ``or (D)'' and inserting ``(D) a plan which
meets the requirements of section 403(b) of such Code if (i)
such plan is subject to title I of the Employee Retirement
Income Security Act of 1974 (29 U.S.C. 1001 et seq.), (ii) any
employer making such plan available agrees to serve as a
fiduciary for the plan with respect to the selection of the
plan's investments among which participants can choose, or
(iii) such plan is a governmental plan (as defined in section
414(d) of such Code); or (E)'';
(2) by striking ``(C), or (D)'' and inserting ``(C), (D),
or (E)''; and
(3) by striking ``(iii) which is a plan funded'' and
inserting ``(iii) in the case of a plan not described in
subparagraph (D), which is a plan funded''.
(d) Amendments to the Securities Exchange Act of 1934.--Section
3(a)(12)(C) of the Securities Exchange Act of 1934 (15 U.S.C.
78c(a)(12)(C)) is amended--
(1) by striking ``or (iv)'' and inserting ``(iv) a plan
which meets the requirements of section 403(b) of such Code if
(I) such plan is subject to title I of the Employee Retirement
Income Security Act of 1974 (29 U.S.C. 1001 et seq.), (II) any
employer making such plan available agrees to serve as a
fiduciary for the plan with respect to the selection of the
plan's investments among which participants can choose, or
(III) such plan is a governmental plan (as defined in section
414(d) of such Code), or (v)'';
(2) by striking ``(ii), or (iii)'' and inserting ``(ii),
(iii), or (iv)''; and
(3) by striking ``(II) is a plan funded'' and inserting
``(II) in the case of a plan not described in clause (iv), is a
plan funded''.
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