The House this week passed an American Bankers Association-backed bill to allow 403(b) retirement plans to invest in bank collective investment trusts.
The Retirement Fairness for Charities and Educational Institutions Act (H.R. 1013), sponsored by Rep. Frank Lucas (R-Okla.) cleared the chamber by vote of 295-128. In a letter last year to lawmakers, ABA said bank collective investment trusts are cost-effective and offer more investment options for 401(k) and similar defined contribution plans.
Also this week, the House passed the Take Care of America’s Veterans Act (H.R. 9237), sponsored by Rep. Mike Bost (R-Ill.) by voice vote. The bill funds new healthcare, education and job measures for veterans by raising Veterans Affairs mortgage costs, according to a summary by Housing Wire. Specifically, the bill would raise the Interest Rate Reduction Refinance Loan funding fee from 0.5% to 1.42%, double the VA assumption fee to 1%, extend current funding fee rates for nondisabled veterans, and add monthly charges for some borrowers, the news site reported. ABA has not weighed in on the bill.
