ABA supports bill to enhance retirement savings

The American Bankers Association today sent a letter to Senate Finance Committee leaders in support of the Enhancing Retirement Now Act, which would significantly improve retirement savings for Americans. “In particular, we welcome the helpful enhancement of investment options for participants in 403(b) plans, such as teachers, public servants and nonprofit workers, to include bank-maintained collective investment trusts,” ABA said. “CITs have cost advantages relative to other types of funds, while providing more design and administrative flexibility specific to retirement plan investors.”

The association urged lawmakers to include in the 403(b) plan provision “the necessary amendments to not only the Internal Revenue Code, but also the Investment Company Act of 1940, the Securities Act of 1933, and the Securities Exchange Act of 1934,” ABA said. “Without amendments to all four of these laws, participants in 403(b) plans may not have the advantages of CIT investment options.”